FeasibilityStudy BulacanStateUniversity-1

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Sugaresa: A Feasibility Study on the Development of a Healthy Alternative Sweetener
Sugaresa: A Feasibility Study on the Development of a Healthy

Alternative Sweetener
By:
Caballero, Gilbert J.
Corros, Recilla B.
Cristobal, Addriene Ruth A.
De Leon, Liezel Anne R.
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ABSTRACT
The Philippines is considered as one of the diabetes “hot spots” in the Western Pacific
region, where the disease is already reaching epidemic proportions. Moreover, the World Health
Organization predicts that from 2.7 million in 2000, the number of diabetics in the country will
reach 7.7 million by the year 2030. With these reports, the proponents want to improve the quality
of life of every Filipino. It will be achieved by providing them a natural alternative sweetener made
from Kerson fruit. This alternative sweetener contains low glycemic index which can help to lessen
the growth rate of obesity that is determined as one of the major causes of diabetes in the country.
The proponents established a feasibility study to show the marketability and profitability of the
business proposal. They named the company “Ivictus Magni Corporation” with a tagline of “Your
Nutrition is Our Mission” to convey that the proponents aim to promote a healthy lifestyle for its
consumers. The proponents named their product as “Sugaresa” to convey that the product is an
alternative sweetener made from Saresa, a Filipino term for Kerson Fruit. This product would be
offered in NCR, Central Luzon and CALABARZON.
Keywords: Alternative sweetener, Kerson fruit, Diabetes, Feasibility study, Sugaresa

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TABLE OF CONTENTS
ABSTRACT .................................................................................................................................... 1
I. FRAMEWORK ....................................................................................................................... 6
1.1 Brief Description of the Project ....................................................................................... 6
1.3 Marketing Aspects............................................................................................................ 6
1.4 Technical Aspects ............................................................................................................ 7
1.5 Management Aspects ....................................................................................................... 7
1.6 Financial Aspects ............................................................................................................. 8
1.7 Socio-Economic Aspects.................................................................................................. 8
II. INTRODUCTION OF THE STUDY ...................................................................................... 9
2.1 Background of the Study .................................................................................................. 9
2.2 Statement of Objectives ................................................................................................. 10
2.3 Significance of the Study ............................................................................................... 10
2.4 Scope and Limitation ..................................................................................................... 11
1.5 Definition of Terms ........................................................................................................ 12
III. MARKET STUDY ................................................................................................................. 13
3.1 Objective of the Study .................................................................................................... 13
3.2 Methodology .................................................................................................................. 13
3.3 Demand .......................................................................................................................... 14
3.3.1 Consumer and Competitor of the Product .............................................................. 14
3.3.2. Consumption for the Past Years and Demand Projection ........................................... 17
3.4 Market Share ................................................................................................................. 19
3.5 Marketing Strategies and Programs .............................................................................. 23
3.5.1 Product .................................................................................................................... 23
3.5.2 Pricing ..................................................................................................................... 26
3.5.3 Promotion................................................................................................................ 27
3.5.4 Place of Distribution .............................................................................................. 37
IV. TECHNICAL STUDY ........................................................................................................... 43
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4.1 Objectives of the Study ....................................................................................................... 43

4.2 Product ................................................................................................................................ 44
4.2.1. Description and Uses of the Product ...................................................................... 44
4.3 Manufacturing Process ........................................................................................................ 51
4.4 Production Schedule ....................................................................................................... 54
4.5 Machine, Equipment and Accessories ........................................................................... 63
4.6 Plant Location ................................................................................................................ 67
4.6.1 Site Location .......................................................................................................... 67
4.6.2 Facility Layout .............................................................................................................. 77
4.7 Raw Materials and Supplies ........................................................................................... 99
4.7.1 Kerson Fruit Plantation ........................................................................................... 99
4.7.1. A. Scrap Rate ............................................................................................................. 103
4.7.1. B. Plantation Management ........................................................................................ 105
4.7.1. C. Initial Land Preparation ........................................................................................ 105
4.7.1. D. Water Irrigation System ........................................................................................ 106
4.7.1. E. Supplies and Utilities ............................................................................................ 109
4.7.1. F. Growth Rate of Kerson Tree ................................................................................. 111
4.8 Supplies ........................................................................................................................ 111
Furniture and Fixtures ................................................................................................................. 115
4.9 Utilities .............................................................................................................................. 118
4.10 Waste Disposal ................................................................................................................ 120
4.11 Direct Labor Requirements ............................................................................................. 122
V. MANAGEMENT STUDY .................................................................................................... 125
5.1 Objectives .......................................................................................................................... 126
5.2 Form of ownership ............................................................................................................ 126
5.3 Source of Capital ............................................................................................................... 126
5.4 Organizational Structure ................................................................................................ 127
5.5 Man Power Requirement ................................................................................................... 129
5.6 Employee Benefits ............................................................................................................ 147
5.6.1 List of Leaves ........................................................................................................ 147
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5.6.2 Holidays ................................................................................................................ 148

5.6.3 13th Month Pay ..................................................................................................... 149
5.6.4 Other Benefits ....................................................................................................... 150
VI. FINANCIAL STUDY .......................................................................................................... 155
6.1 Objective of the Study ....................................................................................................... 155
6.2 Total Project Cost .............................................................................................................. 155
6.3 Initial Capital Requirement ............................................................................................... 157
6.4 Source of Financing .......................................................................................................... 158
6.5 Financial Statements ......................................................................................................... 159
6.5.1 Assumptions ............................................................................................................... 159
6.4.3 Projected Income Statement ....................................................................................... 180
6.4.4 Projected Statement of Changes in Partner’s Equity .................................................. 183
6.4.5 Projected Cash Flow ................................................................................................... 185
6.4.6 Projected Balanced Sheet ........................................................................................... 187
6.5.2 Liquidity Ratio ............................................................................................................ 191
6.5.3. Solvency Ratio ........................................................................................................... 192
6.5.4 Activity Ratio ............................................................................................................. 192
6.6 Breakeven Analysis ........................................................................................................... 193
6.7 Capital Recovery and Internal Rate of Return .................................................................. 194
6.8 Net Present Value .............................................................................................................. 195
VII. SOCIO-ECONOMIC STUDY ........................................................................................ 196
7.1 Objectives of the Study.................................................................................................. 196
7.2 Contribution to Philippine Economy ............................................................................. 196
7.3 Preventive Healthcare .................................................................................................... 196
7.4 Employment Generation ................................................................................................ 197
7.5 Social Desirability ......................................................................................................... 197
Conclusion……………………………………………………………………………………...193
References ................................................................................................................................. 2005
Appendix ............................................................................................................................... 2027
Test Result ............................................................................................................................. 2027
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I. FRAMEWORK
1.1 Brief Description of the Project
Invictus Magni Corporation offers an alternative sweetener made from Kerson fruit called
“SUGARESA”. The brand name “SUGARESA” came from the combination of the words sugar
and Saresa (a Filipino term for Kerson fruit). The name Sugaresa will also help to introduce the
Kerson fruit in the market, since some people are not familiar to it. This product is made to promote
a healthy lifestyle to its consumers because unlike the usual sweetener, it contains various health
benefits that can avoid fatal diseases such as Diabetes. The availability of raw materials will not
be a problem since the company is planning to have their own plantation.
1.2 Project Summary
The Invictus Magni Corporation consisting of four shareholders will produce an alternative
sweetener that is low cost but competitively valued in terms of health benefits. The company will
utilize the abundant resources of Kerson Fruit, since it is growing on tropical areas like the
Philippines. The target markets of this study are people who are suffering from diabetes, obesity
and overweight, and health conscious individuals.
1.3 Marketing Aspects
In the market analysis, the proponents conducted surveys and interviews to know the
product to be produced, to whom the product will be advertised, to where the product will be
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distributed, and to determine the willingness of the potential customers in buying the certain
product. This study also includes marketing plans and strategies that will help the proponents to
introduce their product in the market.
1.4 Technical Aspects
The technical aspects discusses the product, its design, the production process and schedule
design, the equipment and machineries, the material handling system, the facility location and the
facility layout containing the process flows within. The proposed facility will be located at
Barangay Pacalag, San Miguel, Bulacan having a lot size of 77,486 square meters. In this aspect
manufacturing process is described through operation process chart; the facilities are designed and
pictured in accordance to the demand needed, space requirement is specified, the process flow,
vehicle flow and employee flow are explained, production schedule are made for the projected 5
years.
1.5 Management Aspects
Management aspects is about a systematic process of thinking ways and means for
accomplishment of pre-determined goals and bringing together necessary resources; physical,
financial and human, and developing productive relationship among them for achievement of
organizational goals. In this study, the management aspects contains the description of the form of
business organization, the capitalization, the organizational structure, the number of personnel
needed, employee job description and requirements, employee benefits and compensation,
organizational policies, manpower schedules and contingency plans (in case of natural disasters,
operational problems, customer problems, business status problems).

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1.6 Financial Aspects
To prove the feasibility of this study, financial aspects were developed. This aspect
includes total project cost or the capital needed to run the business, the financial sources and
financial health. Also, all assumptions were clearly stated and presented in this part of the study to
justify transactions to complete. Moreover, income statements were presented such as cost of
goods sold, cash flows and balance sheet. These financial statements will be used in identifying
different ratios, break-even analysis, payback period, return of investment, internal rate of return
and net present value.
1.7 Socio-Economic Aspects
This part of the study will help in determining the socio-economic contribution of this
project. The socio-economic aspect will explain how the project affects the Philippine economy
not only through income taxes and flow of goods, but also through employment generation and its
contribution to the nation’s economic growth. Also, this part of the study will promote community
development through the environmental desirability of the product and the preventive healthcare
for its consumers.

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II. INTRODUCTION OF THE STUDY
2.1 Background of the Study
Alternative sweeteners are substances that are used in place sugar (sucrose) or sugar
alcohols. They may also be called sugar substitutes, non-nutritive sweeteners (NNS), and no
caloric sweeteners. Sugar substitutes can help people trying to lose weight. They provide sweetness
to foods and drinks without adding extra calories. Using alternative sweeteners in place of sugar
can also help prevent dental decay and aid in blood sugar control in people with diabetes.
A sugar substitute is a food additive that provides a sweet taste like sugar while containing
significantly less food energy. Some sugar substitutes are produced by nature, and others produced
synthetically. Those that are not produced by nature are, in general, called artificial sweeteners. In
2017, sucralose was the most common sugar substitute used in manufacturing of foods and
beverages, having 30% of the global market projected to become $2.8 billion in collective value
by 2021. (Sugarfree, 2018)
Kerson Fruit or Muntingia calabura is a fast growing tree that has a cherry like fruit with
multiple health benefits: Such as lowering blood sugar, preventing cancer, promoting
cardiovascular health, lowering blood pressure, and blocking pain just to name a few (Haider,
2015). Kerson trees grows in Mexico, the Caribbean, Asia, Indonesia, South America, Japan,
Philippines, China, India, Cuba, Haiti, Dominican Republic and many other places. It’s also known
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in the states as Strawberry Tree, Panama berry, Jamaican cherry, Bajelly tree and Singapore cherry,
and in Spanish it’s called bolania, memizo, and yamanza. (Haider, 2015)
2.2 Statement of Objectives
The proponents would like to offer a new product that will perform as sugar substitute that
has more health benefits to offer. In particular, this study aims to achieve the following:
 To provide a feasible business plan for the new product to introduce based on the
analyzed target market
 To exhibit the existence of the market by identifying market demand, trend and its
sustainability
 To establish the profitability of the said business venture by identifying the
necessary and reasonable technicalities needed in production
 To exhibit the feasibility of the business venture by computing the liquidity of the
business venture and the expected return of investments to interested entrepreneurs,
capitalists and investors
2.3 Significance of the Study
This study has the works and analysis that would be beneficial to the following:
To The Proponents
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This study would be a good opportunity for the researchers to enhance their knowledge
and skills in the field of their profession. In addition, they would be able to learn how to manage
a business effectively. Through this feasibility study, the researchers can apply Industrial
Engineering tools and principles.
To The Potential Investors
This study would encourage potential investors and businessmen who aim to be in this kind
of business. This study can help them to produce a product that will have a competitive advantage
among other similar product(s) in the market.
To The Future Researchers
This study could serve as their future reference that will provide valuable information
related to the objectives of this study.
To The Filipino Community
This study can help the community by providing an alternative sweetener that is low cost
but competitively valued in terms of health benefits.
2.4 Scope and Limitation
This study measured the feasibility of the business plan of Sugaresa, an alternative
sweetener made from Kerson fruit. This study focused on different aspects: marketing, technical,
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management, financial and socio-economic study. This study also envisioned the projected 5 years
operation.
The proponents covered the market of Central Luzon, NCR and CALABARZON mainly
targeting organic stores, cafés and restaurants. The facility is to be located at Barangay Pacalag,
San Miguel, Bulacan because this location is deliberately chosen by the proponents using factor
rating and SWOT analysis among other identified areas by the proponents. This location has
accessible to electricity and water, and it is adjacent to the national roads.
This study was conducted from the product creation dated August 2017 up to April 2018
for the finality of this feasibility study.
1.5 Definition of Terms
Sugaresa – An alternative sweetener made from Kerson Fruit
Kerson Fruit - Kerson fruit is a cherry like fruits which are sweet in taste and aroma. Also known
as “Aratiles”
Milk of Lime – A substance used to increase the pH level of Kerson fruit extract.
Invictus Magni- The company name of the proponents which is in the form of corporation.
Cost-plus Pricing- A pricing technique used by the proponents to determine the market price of
the product.
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III. Market Study
This chapter shows the overall market analysis of the Sugar made out of Kerson Fruit. This
includes the objectives of the study, the methodology, demand and supply Analysis, projected
sales, target market share and lastly, and set of marketing strategies.
3.1 Objective of the Study
The main objective of the Market Study is to define and to analyze the factors needed for
attaining the success of the company.
Specifically, this study was intended to achieve the following objectives:
 To recognize the indirect and direct competitors of the product in order to identify the target
market of the product
 To analyze the marketability and sustainability of the business venture; and
 To establish marketing programs and strategies that will help the product to gain
competitive advantage in the market
3.2 Methodology
The proponents used market research methods to gather information in determining the target
market of the product. This will also help them in identifying the strengths and weaknesses of the
company; and the opportunities and threats on the market.

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 Primary Market Research
To gain competitive advantage against other similar products in the market, the proponents
conducted market research to analyze the customers’ need and the available market size to be
penetrated. This was done through surveys and interviews.
 Secondary Research
The proponents gathered the necessary data from different government organizations such
as Philippine Statistics Authority, Philippine Sugar Regulatory Administration and other local
offices.
3.3 Demand
Before identifying the demand of the product, target consumers should be determined first.
Identifying the consumer would lead on recognizing the direct and indirect competitors of the
product. After identifying the market competitors, the proponents can now be able to forecast
future demand of the product and as well as the market share size that would utilized the operating
resources.
3.3.1 Consumer and Competitor of the Product
Sugaresa, the product of Invictus Magni Corporation, as compared to other alternative
sweeteners has more health benefits to offer. Therefore, the target consumers of the product
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includes the following sector: Individuals that are suffering from diabetes; people who are
suffering from obesity and overweight; and health conscious individuals.
The Philippines is consider as one of the diabetes “hot spots” in the Western Pacific region,
where the disease is already reaching epidemic proportions. Our government knows this too well,
so the Republic Act 8191 was created in 1996 by National Diabetes Commission to address the
problems posed by diabetes (Castillo, 2018). Moreover, in late 2017, an increased on the taxes of
sugary beverages are have been implemented to stem the tide. One out of five Filipinos estimated
to be diabetic and the World Health Organization predicts that from 2.7 million in 2000, the
number of diabetics in the country will reach 7.7 million by the year 2030 (Chan, 2016).
According to a report, “Among the six countries studied, the Philippines has the second-
lowest obesity and overweight prevalence at 5.1% and 23.6% respectively. But despite low
prevalence rates, obesity has strong impact in the Philippines due to the large number of obese
persons in the country - 18 million people are obese and overweight” (Tacio, 2017). Obesity and
overweight is the main cause for having many serious diseases and health conditions such as
hypertension, dyslipidemia (High or low level of LDL cholesterol), diabetes, coronary heart
disease, stroke, gall bladder disease, osteoarthritis, sleep apnea and breathing problems, also some
type of cancers and body pain that leads to difficulty with physical functioning.
With this, the proponents want to improve the quality of life of Filipinos, by providing
them a natural alternative sweetener. This alternative sweetener contains low glycemic index
which can help to lessen the growth rate of obesity that is determined as one of the major causes
of diabetes in the country.
After identifying the target consumer of the product, the market competitors including the
direct competitors, indirect competitors and potential competitor can now be determined. Multiple
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businesses offering similar products create direct competition. As for Sugaresa, sample direct
competitors are; Equal and Splenda. While indirect competitors are those businesses that offer
slightly different product but target the same group of consumers. Table sugar and honey are
sample indirect competitors of Sugaresa.
Table 3.1 Competitor Analysis
Direct Competitor Indirect Competitor
Non-Nutritive Nutritive
Artificial Natural  Table Sugar

 Muscovado
 Aspartame  Date Sugar
(Equal, NutraSweet)  Coco Sugar
 Honey
 Sucralose  Maple Sugar
(Splenda)
 Molasses
 Stevia
(Truvia)
These non-nutritive sugar substitutes are popular among people suffering from diabetes
because they do not spike blood sugar the same way sugar does. This is also popular among dieters
who want something “sweet” without the hefty calories. Because unlike table sugar, which has
approximately 16 calories per teaspoon, Splenda, Sweet and Low, Equal, and Truvia all contribute
little to no calories. Here’s where they differ (Berkeley Wellness, 2016):
 Splenda (sucralose): Sucralose is not broken down in the body, so it has zero calories. It’s
about 600 times sweeter than table sugar and can be used in anything. Since it doesn’t lose
its sweetness when you apply heat to it, you can use Splenda in hot foods and baking.
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 Equal (aspartame): Aspartame is typically found in chewing gum, diet soda, puddings, and
many other “sugar-free” snacks. It’s 200 times sweeter than sugar, but it does
have some calories (a measly 2 calories or so) per packet. It also loses its sweetness when
heatedso it’s not ideal in baked goods.
 Truvia (stevia): Because the sweetness of stevia is derived from the leaves of a plant
called Stevia rebaudiana, it’s often touted as a “natural sweetener.” In the U.S., the plant
itself is not added to the food, just a chemical extract called Rebaudioside A. It’s about 200
to 400 times sweeter than sugar.
Although artificial non-nutritive sweetener possess those good characteristics, they also
have side effects to the consumers such as migraines, nausea and vomiting, insomnia, abdominal
and joint pains, change in heart rate, depression, memory loss, seizure and brain cancer.
3.3.2. Consumption for the Past Years and Demand Projection
According to Global Artificial Sweeteners Market, compound annual growth rate for the
year 2017-2026 will be 4.7%. It was forecasted by the GASM that the revenue for the artificial
sweetener to exceed US$ 2 Billion by the end of year 2023. In this market, sugar from sugar cane
holds the majority share, comprising an 85% share. Due to the effect of high intake of sugar, there
has been a marked increase in the number of consumers that have shifted to artificial sweeteners
(BCC, 2014). According to Global Artificial Sweeteners Market, the revenue for the artificial
sweetener will exceed to US$ 2 Billion by the end of year 2023 due to harmful effects and rising
health concerns as resulted by table sugar. (Ganguli, 2018).

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Global Consumptionof Sweetener
15%
Sugar
85%
Alternative Sweeteners
(Natural and Artificial)
Figure 3.1 Global Consumption of Sugar and Alternative Sweeteners (Source: Ganguli, 2018)
Table 3.2 shows the total global consumption of alternative sweetener for past 5 years. In
order to get the Philippine consumption for the previous years, the proponents multiplied the global
consumption into 0.98%, ratio of Philippine economy against global (Philippine Statistic
Authority, 2018). The proponents also computed the consumption of Central Luzon, NCR and
CALABARZON, which 40% (0.39% against global consumption) of the whole Philippines
consumption because it will be the market area for the company to be covered. Table 3.3 will show
the forecasted sales of artificial sweetener for the next 5 years.
Table 3.2 Consumption of Alternative Sweetener for Past Years
(Central Luzon, NCR,

Global Philippine
Year and CALABARZON)
Consumption Consumption (0.98%)
Consumption (0.39%)
2013 $ 1,459,847,843.69 $ 14,233,516.48 $ 5,693,406.59
2014 $ 1,504,997,777.00 $ 14,673,728.33 $ 5,869,491.33
2015 $ 1,551,544,100.00 $ 15,127,554.98 $ 6,051,021.99
2016 $ 1,599,530,000.00 $ 15,595,417.50 $ 6,238,167.00
2017 $ 1,649,000,000.00 $ 16,077,750.00 $ 6,431,100.00
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2018 $ 1,700,000,000.00 $ 16,575,000.00 $ 6,630,000.00

SOURCE: CISION PR News RESEARCH and MARKETS (The World’s Largest Market
Research Store, November 2017)
Table 3.3 will show the forecasted sales of artificial sweetener for the next 5 years of global,
Philippine and regionals consumptions.
Table 3.3 Projected Sales of Alternative Sweetener for the Next 5 Years
Forecast Global consumption Philippine (Central Luzon, NCR,

Consumption and CALABARZON)
(0.98%) Consumption (0.39%)
2019 $ 1,778,200,000.00 $ 17,337,450.00 $ 6,934,980.00
2020 $ 1,859,997,200.00 $ 18,134,972.70 $ 7,253,989.08
2021 $ 1,945,557,071.20 $ 18,969,181.44 $ 7,587,672.58
2022 $ 2,035,052,696.48 $ 19,841,763.79 $ 7,936,705.52
2023 $ 2,128,665,120.51 $ 20,754,484.92 $ 8,301,793.97
3.4 Market Share
Several data are needed in order to get starting market share of the Invictus Magni
Corporation. According to World Health Organization (2018), prevalence of diabetes and related
risk factors are as follows: Diabetes (5.8%), Overweight (22.3%), Obesity (4.7%) and Physical
inactivity (14.4%) which sums up with 47.2 % of the combined population of Central Luzon, NCR
and CALABARZON.
WHO stated that diabetes country profile of the Philippines classified overweight, obesity
and physical inactivity under risk factors on the prevalence of diabetes. One study in American
Diabetes Association shows the relationship of obesity and reduced level of physical activity. It
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was said that obesity and reduced level of physical activity is directly related with the insulin
resistance that characterize diabetes. Physical activity is also one of the cornerstones of diabetes
management (Ricart, MD, PHD2, de Pedro-Velasco, MD PHD1, Monero, MD3, Moreno, MD,
PHD4, & Marrugat, MD, PHD, FESC5, 2003).
Prevalence of Diabetes and Other

Related Risk Factors
5.8% 4.7%
Diabetes
22.3% Obesity
52.8%
Overweight
14.4%
Physiscal Inactivity
Others
Figure 3.2 Percentage affected by Diabetes, Obesity, Overweight and Physical Inactivity (source:
World Health Organization, 2018)
When it comes to paying more for healthier options, 50 percent of the sample said that they
are willing to pay more for the products that claim made from “only natural sweeteners”.
Capability to buy Sugaresa was based on the income classes. Families under upper to lower class
are able to buy the product. An average of 1 family belong to upper class with a minimum of Php
702,822 annual capita (roughly 0.09%); 205 families are under middle class with a minimum of
Php 57,396 annual per capita (20.41%); 615 families belong to lower class with a minimum of Php
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16,872 annual per capita (61.5%); these three classes sums up for a total of 82%. This means that
82% of the families in the 3 regions are capable to buy the product since Sugaresa is 70% cheaper
compare with the artificial sweeteners.
Table 3.4 Data Needed for Market Share
Total %
Diabetes 5.8%
Over weight 22.3%
Obesity 4.7%
Physical inactivity 14.4%
Willing to pay more for healthier options 50%
Percentage of the sample that are capable of Buying the product 82%
Sugar alternative growth rate 30 %
Percent Market Share
= (Ʃ Prevalence of diabetes and related risk factors) × Willing to pay
× Capable of buying
Percent Market Share = 47.2% × 50% × 82%
Percent Market Share = 19.35%
The proponents get the average value of different sweetener; average price of alternative
sweetener is Php 1,650.00 per kilogram. In order to get number of units sold in the Philippines,
the proponents divided the Philippine sale in Peso to the average cost of alternative sugar, which
is Php 1,650.00. (See table below for the average)
Table 3.5 Prices of Alternative Sugar
Alternative Sugar Price

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Splenda Php 1,300

Equal Php 2,000
Equal Classic Zero Calories Php 1,200
Stevia Php 2,100
AVERAGE Php 1,650
(Source: Iprice.ph, 2018)
Table 3.6 Forecasted Sales for Next 5 Years
Central Luzon,
Central Luzon, NCR, and
NCR, and Number of units
Year CALABARZON sale in
CALABARZON Produced
Peso (Php 50/ $1)
sales in USD
2019 6,934,980.00 346,749,000.00 210,151
2020 7,253,989.08 362,699,454.00 219,818
2021 7,587,672.58 379,383,628.88 229,930
2022 7,936,705.52 396,835,275.81 240,507
2023 8,301,793.97 415,089,698.50 251,570
As observed on the table below, percent market share is increasing computed as follows:
Present year’s Market Share = Previous year’s market share x 1.30
Year 2020 = 19.35% x 1.30 = 25.16%
Year 2021 = 25.16% x 1.30 = 32.71%
Year 2022 = 32.71% x 1.30 = 42.52%
Year 2023 = 42.52% x 1.30 = 55.28%
30% increase in market share was based on alternative sugar growth rate (see table 3.4)
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Table 3.7 Projected Sales
Year Market Share (%) Annual Market Share (kg) Daily Production (kg)
2019 19.35% 40,916 142
2020 25.16% 55,638 193
2021 32.71% 75,656 263
2022 42.52% 102,877 357
2023 55.28% 139,893 486
3.5 Marketing Strategies and Programs
3.5.1 Product
In the last two decades, overweight and obesity prevalence has been steadily increasing
according to the Food and Nutrition Research Institute (FNRI) data. FNRI senior science research
specialist says that there has been a shift in the dietary pattern of Filipinos in terms of quality and
quantity over the years. This development may likely be the reason why there is an increasing
prevalence of cardiovascular diseases, diabetes, and various forms of cancer and musculoskeletal
disorders like arthritis in the country (Buban, 2016). Consequently, the proponents offer a product
that can promote a healthy lifestyle.
The product is an alternative healthy sweetener that is called Sugaresa. Sugaresa is an
alternative sweetener that has granules appearance, crystal-crushed texture and has brownish color.
Sugaresa is an alternative sweetener that is rich in healthy benefits. For the primary
ingredient itself has multiple health benefits namely: it is a good source of
antibacterial compounds, it lowers blood sugar for Diabetic, it is used to stop pain associated with
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Gout, it works great in getting rid of headache, it contains good amount of Vitamin C and lots of
Antioxidant, it also contains fiber, water, carbs, protein for strong muscles, Calcium and
phosphorus for strong bones, Iron for anemia, Vitamins B for vitality and good mood (Haider,
2015).
Since Kerson fruit is not familiar for some people, in order to introduce it the market the
proponents include the word “Saresa” to its brand name combining the word “Sugar” which result
to “Sugaresa”. On the brand logo, the proponents design it having a bunch of Saresa (Kerson fruit)
forming a pyramid shape which implies that it is in the form of granules. The proponents include
the brand name on the logo using the keyword “sugar” so that it might be easily identified that it
is an alternative sweetener.
Figure 3.3 Product Logo
The packaging of the product may come in a paper sachet to promote eco-friendly material.
It is a sachet good for one serving, one sachet contains 2 grams of Sugaresa and each box will
contain 50 sachets of Sugaresa.

25
Table 3.8 SWOT Analysis of Sugaresa
Strength Weakness Opportunity Threat
 Healthy  Kerson fruit  Sugaresa can be  Over production

alternative sugar bears seasonal in exported to other can occur due to
that can the Philippines countries which seasonal peak of
potentially  Requires unique count higher risk the raw materials
reduce numbers introduction to of diabetic and storage
of diabetic in the market due to individuals method
country existing  Can be one of
 Sugaresa competitors the unique
possessed low  Cannot be easily healthy products
cost than other notice by the of the country
existing buyers because since is locally
alternative certain number made
sweetener in the of artificial
market sweeteners are
 Raw materials already in the
can be easily market
found, no need
for importation
 Promotes healthy
living for every
filipino
Product Differentiation
Table 3.9 Product Differentiation

26
Product Brand Sugar Content Nutritional Contents
1. Splenda  55% sugar  3 Calories (1 packet, 1 grams)

content  Zero gram Fat
 0.9 grams (Carbs)
 Zero gram (Protein)
2. Equal  25% sugar  It does have some calories (a
content measly 2 calories or so per
packet,1 gram)
 Zero gram Fat
 1 gram (Carbs)
3. Truvia (Stevia)  30% sugar  It has zero Calories (1 packet, 1
content grams)
 Zero Fat
 Zero gram (Carbs)
4. SUGARESA  15.48% sugar  Contains Fiber
content  Contains Antibacterial and
Antioxidant Agents
 Contains Vitamin C
(Source: Runtastic Team, 2018 and Haider, 2015)
3.5.2 Pricing
Although there are many pricing techniques that can be applied to product, the proponents
used cost-plus pricing to establish the market price of the product. This approach involves getting
the sum of direct material cost, direct labor cost, manufacturing overhead cost and the mark up
percentage (in order to create a profit margin) to compute for the actual selling price of the product.
This technique will ensure that the price will be able to cover the overall production cost of the
product. However, one of its disadvantage is that cost-plus pricing technique ignores competition.
This situation may have a huge impact on the market share and potential profits of the product.
27
The Table below will show the initial total direct cost for 1 small box or 100 grams of the
product. Take note that the price of kerson fruit was only based on normal market, the price may
still decrease. Direct labor cost, manufacturing overhead and markup percentage will be consider
on the succeeding chapter.
Table 3.10 Price Differentiation among Existing Artificial Sweetener
Variant Sugaresa Equal Stevia Splenda
100 grams Php 85.00 Php 220.00 Php 200.00 Php 135.00
Table 3.11 Price Breakdown
Cost
Direct Labor cost per Unit Php 3.99
Direct Material cost per Unit Php 9.60
Manufacturing Overhead cost per unit Php 51.43
Total Php 65.02
Mark-Up Percentage 30%
SELLING PRICE Php 85.00
3.5.3 Promotion
 Consignment
28
Consignment is an arrangement in which goods are left in the possession of another party
to sell. Typically, the consignor receives a percentage of the revenue from the sale.
How does it work?
A person wanting to sell his products delivers the items to a consignment shop or a third
party willing to do the selling on his behalf. Before the third party takes possession, an agreement
should be reached first for the revenue split when the goods are sold.
Table 3.12 Swot Analysis for Consignment
Strengths Weakness Opportunities Threats
 A good way to  May require  Long-time  If the product
introduce new big investment partner may be does not sell it
products in the  It may be a loss ensure if the may potentially
market for the seller if product sells reduce partners
 May ensure long the product well  Large inventory
term business does not sell  The products may be a
with a retailer  The other party that were not problem if the
 Can easily may not be that able to product does
assess where the eager to sell the sell/consume not sell
product stands product can be used or
in the market because of the sell to another
partner
29
 It reduces absence of
inventory monetary risk
holding of the
products
 Provide Discounts
Giving discounts is a good marketing strategy that may enable the business firm to have
better sales. Discounts are a specific type of marketing promotion in which you encourage
shoppers to save money on specific products or product groups. Businesses use discount pricing
to sell low-priced products in high quantities. With this strategy, it is important to cut costs and
stay competitive. Large retailers are able to demand price discounts from suppliers and make a
discount pricing strategy effective. It is usually impossible to compete with these retailers based
solely on a discount pricing strategy. Use discounts off the list wisely and sparingly. Occasional
discounts and discounts that reward loyal customers are effective. Discounts used too often begin
a downward pricing spiral that may eventually damage your ability to sell the product at full price.
How does it work?
Discount pricing will be offered to the customers if they were able to avail a certain amount
or number of product. It may be percentage wise that attracts people and business firms,
Table 3.13 SWOT Analysis for Discount Method

30
 It is a good way  Invite wrong  It can attract new  Can be easily
to attract attention customers countered by
customers  The focus will be  It can potentially other firms
 It is a rapid way shifted with the lead to having  Lower priced
to increase or price and not the long-term products may
drive sale quality of the partners offer bigger
 It may free up products  Build good discounts
space  It will cut the reputation and  May be
 It clears out old profit generation impression with perceived as low
stock customers. quality product
 It can build also due to low price
harmonious
relationship with
loyal customers
 Sponsorship
Sponsorship does a lot of things for a business. It’s not just an act of charity. Businesses
must have a reasonable expectation of return in investment. That ROI, however, isn’t always about
making more money but also acquiring attention and recognition. Being a corporate sponsor
31
involves donating money, goods or services, or otherwise supporting or underwriting certain costs
for a non-profit or charitable organization.
How does it works?
Sponsorship to bloggers or small business that operates online can be a good source of
gathering attention as well as endorsement especially for people who watch online cooking shows.
If the sponsorship is successful, the people who used the product will give positive feedbacks that
can be a very big help in promoting one’s product and in making it more competitive in the market.
It can also make a good impression especially for a new competitor in the market.
Table 3.14 SWOT Analysis for Sponsorship
 It catches  It may require to  It can create a  If it does not
attention of the use quite a lot good image for work bad image
people that helps resources or the company will be the result
make the brand funds  It can create  If it does not
recognizable  It may cause lasting work it may be a
 It creates brand shortage to relationship with loss for the
awareness supply customer company
 It can garner  It is hard to  Emotional
media exposure sustain connection with
that makes the the sponsored

32
brand more customers may be
distinguishable established
compared to other
brands
 It shows goodwill
and generosity
that makes a good
impression
 Print Ad Materials
Print ads are the easiest form of marketing strategy. Posting on walls or bulletins or anywhere
as long as it’s a legal posting area. 2013 -- Households exposed to print magazine advertising
campaigns spent significantly more (+3% to +36%) than those consumers not exposed (test vs.
control), finds analysis by Nielsen for magazine publisher, Meredith Corp.
Table 3.15 SWOT Analysis for Print Ad
 Low cost  Too conventional  Brand  Many
 Easy to perform  Too common recognition competitors with
 Does not require  Gets customer the same
much man power attention technique

33
 Social Media
Social media is probably the biggest platform in today’s advertising world. It is the cheapest
and fastest way of promoting one product to the customer.
Table 3.16 SWOT Analysis for Social Media Ads
 Low cost  Too common  Brand  Many competitor
 Easy to perform  Negative recognition with the same
 Fast advertising customer  Gets attention technique
 Great customer comments can  Can be
interaction affect the negatively
product advertised if
unused correctly
 Join Trade Fairs and Bazaars

34
Joining trade fairs and Bazaars can help the product to attract attention and launch it since
trade fairs are good way to promote unpopular product yet. It will be beneficial for the growth of
market share and promotion. Also, it will help the company attract future investor of the product.
Table 3.17 SWOT Analysis for Trade Fairs
 A good way to  Can be costly  Can potentially  Can be subjected
raise your because there are find new to copying of
profiles and many things to partners with the product
generate brand consider. product or
awareness  Unguaranteed distributor
 A powerful way turnout  Can gather data
to launch new that could help
products to the improve the
consumers product
Return on Promotion
Meredith's “ROI Guaranteed” advertising program reports that for the 25 initial brands
partaking in the program, which includes Kimberly-Clark and Tyson Foods, the brand ads in their
magazines helped produce sales increases of between 3% and 36%.
Table 3.18 Marketing Strategy (Year 1)

35
Sponsorship Expense : Php 36,000 equivalent to 42 kgs of

Sugaresa
(15% of Promotion and Advertisement cost)
Trade Fairs and Bazaars Expense : Php 36,000
(15% of Promotion and Advertisement cost)
Discounts Expense: Php 144,000
(60% of Promotion and Advertisement Cost)
Type 1 Discount:
For every purchase of 100 small boxes of

Sugaresa (Equivalent to 10Kgs) there will be
5% discount
Assumptions: 200 times the consumer will

buy 100 boxes the whole year
Computation:
100 boxes x Php 85= Php 8,500
Php 8,500 x 5% = Php 425
Php 425 x 200 = Php 85,000
Type 2 Discount:
36
For every purchase of 150 small boxes

of Sugaresa (Equivalent to 15Kgs) there will
be 7% discount
Assumptions: 66 times the consumer will buy

from 150 boxes the whole year
150 boxes x Php 85 = Php 12,750
Php 12,750 x 7% = Php 892.5
Php 892.5 x 66 = Php 58,905
Print Ads Expense: Php 24,000
10% of Promotion and Advertisement Tarpaulin Printing Cost

Expense
2x3 feet (5000 - 9999 pcs) 60.00 each
2x4 feet (5000 - 9999 pcs) 80.00 each
2x5 feet (5000 - 9999 pcs) 95.00 each
Flyers 5.00 each
Stickers (12.5 x 19" ; 100-299 pcs) 25.00

each
Poster (12x18" ; 100 -299 pcs) 30.00

each
37
Brochure/Leaflets (100 - 299 pcs) 50.00

each
3.5.4 Place of Distribution
The place of distribution of the alternative sweetener “Sugaresa” is based on the prevalence
of Diabetes in the Philippines and the mortality rate of Filipinos. According to FNRI (2013), the
8th National Nutrition Survey shows that based on high Fasting Blood Glucose, diabetes is
prevalent at the age of 60-69 (among the richest wealth class and urban residents). Central Luzon
(11.9%), Calabarzon (12.1%) and NCR (16.6%) have the highest regional prevalence rate of
diabetes. While according to PSA (2016), Diabetes is one of the top ten causes of death. NCR
(13.3%), Central Luzon (11.9%) and CALABARZON (14.2%) have the highest rates of death due
to Diabetes. Therefore, the proponents decided to target these regions as the market of Sugaresa:
NCR, Region III and CALABARZON. The proponents would primarily target to supply their
alternative sweetener to organic stores, café and restaurants. In addition, delivery of the product
will be scheduled once a month.
The table below shows the target place of distribution of Sugaresa per region.
Table 3.19 Stores and Café in NCR
Type of Name Address

Business
Manila
Restaurant Oscar Anns Vegetarian House Leveriza St., Manila
Café Advocafe GF Ramon Magsaysay Commercial
Complex
38
Store Healthy Options SM Manila, Level 2, Main Building, SM

City Manila, San Marcelino Street,
Ermita, Manila
Mandaluyong
Store Healthy Options SM Megamall, EDSA corner J. Vargas
Avenue, Mandaluyong
Store Healthy Options Level 1, Shangri-La Plaza Mall EDSA
corner Shaw Boulevard, Mandaluyong
City
Store Vom Fass EDSAE Cor Shaw Blvd,
Store Epicurious L1, East Wing, Shangri-La Plaza
Muntinlupa
Store Healthy Options Festival Supermall, Level 2, Festival
Supermall, Filinvest Corporate City,
Muntinlupa City
Store Healthy Options Alabang town center, Ground Level,
Commerce Mall, Alabang Town Center
Commerce Avenue
Restaurant Tahoorific 2nd floor, Food Choices, Alabang Town
Center
San Juan
Store Earth Origins Marketplace Jasper Bldg., 193 Wilson St., Bgy Sta.
Lucia, San Juan
Café Agico Vegetarian Café Missouri St., Northeast Greenhills, San
Juan
Café Urban Pantry Greenhills Promenade 3, San Juan
Makati
Store Satinka Naturals 1137 Kamagong St., cor Chino Roces
Ave.,
Store Healthy Options Ground Fl, Glorietta 2, Palm Dr, Ayala
Center
Store Ritual 2nd floor, 926 Arnaiz Ave
Store Cocogreen and Co. Herrera cor Legazpi and V.A Rufino St
Store Healthy Options Legaspi St., Ayala Center
Store Rustan's Supermarket Courtyard Drive
Store Rustan's Supermarket LG/F Alphaland Makati Place, 7232
Ayala Ave. Ext. cor Malugay St,
Store Leaf kitchen Raw Food Grocer Legazpi Sunday Market
Store Fresh Choice 116 Perea St., Makati
Store Veggie and More Mara's Orginal Market
Store Take Root 38 Rockwell, Rockwell Drive, Makati
Store The Wholesome Table L P Leviste St Cor, Dela Costa St
39
Store Evolve LP Leviste St

Store Grace Park Rockwell Drive, Makati
Store Salad Stop Rockwell Drive Corner Estrella St,
Store G Stuff Power Plant Mall
Store Healthy Options Lower Ground Floor, Greenbelt, Ayala
Center
Store Healthy Options Level R3, Powerplant Mall, Rockwell
Center Makati City
Store Healthy Options Lower Ground Floor, Century City Mall,
Kalayaan Avenue, Makati City
Store Healthy Options Ground Floor, Glorietta 2, Palm Drive,
Ayala Center
Store ECHOstore Salcedo 116 Tordesillas St., Salcedo Village
Restaurant Soups and Sandwiches Basement, Rustan's Supermarket, The
Power Plant Mall
Paranaque
Restaurant 81 Place Lifestyle Store & 81 Hannibal St
Bistro
Pasay
Store Healthy Options sm mall of asia, Level 2, Entertainment
Mall, SM Mall of Asia, Seaside
Boulevard, Pasay City
Store Healthy Options S Maison, Conrad Hotel, Marina Way,
Mall of Asia Complex
Pasig
Store Tiendesitas Food Village Ortigas Avenue Cor. E. Rodriguez Ave,
Pateros
Store Save on shop Tri-Ax One cebter, 133 M. Almeda
St.,Pateros
Store Green Halo Organic Store and Shop 11, Cubao Expo Commercial
Café Center
Store Healthy Options Trinoma North Ave, Quezon City
Store Zigla! Dona Hemady St.,
Store Goolai Salads Aurora Blvd corner Dona M. Hemady
Ave, QC
Store The Good Shelf Deli & Eco Sikatuna Village, QC
Store
Store Faburito Quirino Hway Cor Maligaya Dr, Brgy
Pasong Putik
Store Healthy Options Ground Floor, Eastwood Excelsior
Eastwood City, Libis, Quezon City
40
Store healthy Options Level 2, Robinsons Magnolia, Aurora

Boulevard corner Dona Hemady,
Quezon City
Store healthy Options Level 1, UP Town Center, 216
Katipunan Ave,
Diliman, Quezon City
Store Human Nature Store Mayor Gil Fernando Ave, Marikina
Store Tropical Pal Herb Mfg. Magnolia St, Nangka, Marikina
Store Proudly Green Natural and 650 J. P Rizal St, Nangka
Organic
Taguig
Store ECHOstore GF Serendra, Taguig
Store Healthy Options SM Aura, Lower Ground Floor, SM
Aura, McKinley Parkway, Taguig City
Store Healthy Options Bonifacio High Street, Fort Bonifacio
Global City, Taguig City
Table 3.20 Organic Store and café in Central Luzon Area

Type of Name of Business Address
Business
Bulacan
Store Saret Organic Farmville Rocka Executive Village,Balagtas
Restaurants Daily Bread Organic Farm Bustos
Restaurants Café Nenzo Mc Athur Highway, Esperanza Mall,
Mey City
Restaurants Infinity Meals Manila North Road, Mc Arthur highway,
Bulihan, Malolos
Restaurants Lemon Jar Eco Commercial Complex, MS Arthurs
highway
Bataan
Store Herbenna Health 382 Camia St, City of Balanga
Store Botica ni Regina Fourlane Commercial Abucay, Bataan
Restaurant Regions Organic Coffee Laurel St., Balanga
Pampanga
Store Healthy Options SM City Ground Level, SM City Clark,
Angeles City, Pampanga
Store Healthy Options SM city pampanga, Ground Floor, SM
Pampanga, Lagundi, Mexico, Pampanga
Tarlac
41
Café Good Earth Garden Cafe Carangian, Romulo Highway, Tarlac

City, Tarlac, Philippines
Table 3.21 Organic Stores and Café in CALABARZON

Type of Name of Business Address
Business
Cavite
Café CHIC Café 18 mi, Imus, Cavite
Café Haelthy Grounds Café Tanzang Luma, Emilio Aguinaldo, Hwy,
Imus
Restaurant Daniel's Choice Molino Boulevard, Bacoor
Store Forever living Products Molino Road, Barangay Molino, Bacoor
Restaurant Sonya's Garden Barangay Buck Estate, Alfonso, Cavite,
PH
Batangas
Restaurant The Farm Organics Twin Lakes Tagaytay, Nasugbu Hwy,
Laurel
Café He Brews Café P. Burgos, Poblacion
Café Jovita Café Diversion Rd, Sta. Clara
Restaurant Alive! 119, Barangay Tipakan, Lipa
Restaurant Eat 'n Be Well vegetarians' 25 C. tirpna, Poblacion
Haven
Store Health Potion Shop Unit 11 K-Pointe Arcade T. M Kalaw
Street, Balintawak, Lipa
Restaurant The Farm Organics Twin Lakes Tagaytay, Nasugbu
Highway, Laurel
Laguna
Store Healthy Options Nuvali Soledad 3, Nuvali, Sta. Rosa
Store Soul and Skin Potions Marfori Ave, Balayhangin, Caluan
Store Nature's wealth Health Food Gen Miguel Malvar St., Barangay IV-C,
Store San Pablo Cuty
Restaurant Herb Republic Lopez Ave, Los Banos
Restaurant The Farm Organics Don Jose, Santa Rosa
To maximize delivery cost for the three regions, the proponents created 2 delivery route
(See Figures 3.4 and 3.5). Transportation costs per delivery were presented as follows:
Table 3.22 Delivery Cost

42
Cost
Toll fee Php 672.00
Fuel Expense Php 2,000.00
Total Php 2,672.00
The delivery truck will use unleaded gasoline that cost Php 48.00 per liter. 16.5
kilometers will be able to travel per liter of gas. Therefore, 42.7 liters of unleaded gasoline is
available per delivery equivalent to 687.5 kilometers
Figure 3.4 Delivery Route for Region 3

43
Figure 3.5 Delivery Rote for NCR and CALABARZON
IV. TECHNICAL STUDY
This chapter shows the overall technical analysis of the study. This includes discussion of
the product, the specifications and the uses as well as the direct and indirect materials to use. In
addition, it covers the production system of the company such as production scheduling. Direct
and indirect labor requirements, machineries and equipment needed, the company’s supplies and
the manufacturing process. Lastly, it explains all about the utilities, plant location, plant size and
layout, waste disposal management, and different flow once the operation has start such as
emergency plan, employee flow and the process flow.
4.1 Objectives of the Study

44
This study aims to discuss all the technical aspects of Invictus Magni Corporation. Below
are the specific objectives of the researchers for conducting this study:
 To identify the factors needed in developing the best production system for Sugaresa
 To assess possible locations and strategically choose the facility location that fits the
production plant of the company.
 To know the production capacity of the company taking into account the available
resources and projected demand of Sugaresa.
 To show the full manufacturing process of Sugaresa
 To choose the most economical machines and equipment
 To create a plant layout that is suitable for the processes and factors affecting the
production system.
4.2 Product
In order to identify the production system, the product must present because it is the main
entity of the production process. The following describes the product in terms of its function and
properties.
4.2.1. Description and Uses of the Product
The product is an alternative sweetener named Sugaresa. Sugaresa is a sugar-like
sweetener, unlike the typical sugar that is common in the market that is made of sugar cane and
sugar beets; this product is made of natural extracts of kerson fruit. Kerson Fruit (Muntingia
45
Calabura) is a fast growing tree which has cherry-like fruit that has cotton candy and a tart cherry
like flavor. This kerson fruit typically grows in tropical countries like the Philippines.
Sugaresa will come brown in color because it will not undergo refinery process. In addition,
it has an appearance of crushed crystals that has a fine texture .This can be bought in the market
just like existing alternative sugar that comes in a sachet. This sweetener has no fruity after taste
and it smells sweet.
Kerson Fruit itself has multiple health benefits such as; it is use to stop pain associated with
gout and getting rid of headaches. It is also a good source of antibacterial compounds and it
contains lots of antioxidant. It also helps to lower blood sugar level for Diabetic and contains good
amount of Vitamin C. It contains fiber, water, carbs, protein for strong muscles; Calcium and
phosphorus for strong bones; Iron for anemia; Vitamins B for vitality and good mood. The
sweetener will undergo processes will limit the use of chemical and artificial flavorings, as well as
additives to retain all of its natural health benefits. Sugaresa particularly contains
antibacterial compounds, antioxidant, good amount of Vitamin C, and helps lowers blood sugar
levels for Diabetic people. In addition, Kerson fruit has 15.48% sugar content.
Sugaresa exist because of people who are suffering from diabetes and other related factors
and health conscious consumers who happen to be sweet lovers but afraid to have a diabetes. Also,
this product is good for cooking and baking purposes. It can serve as one of raw materials in other
food and beverage manufacturing firm.
Table 4.1 shows the detailed composition of the product with its corresponding amount of
portion per ingredients. For 1 kilogram of the product, it requires 3 kilograms (can yield 2.25 liters
of extract) of Kerson fruit and 0.002 liters of milk of lime.

46
Table 4.1 Composition of Sugaresa
Component Form (Structure) Numerical Value Unit of
Measurement
Kerson Extract Liquid 2.25 Liters
Milk of Lime Liquid 0.002 Liters
Table below shows the list of compositions to produce a sugar-substitute. The percent
recovery per stages and the standard compositions to produce a particular quantity of product is
not yet established, so the percentages used is based upon the standards of sugar cane processing.
Table 4.2 Product Compositions
STAGES COMPOSITIONS % RECOVERY
1. Cleaning and Preparation 3 kilograms of Kerson Fruit -
2. Juice Extraction Kerson Fruit Extract 2.250 liters
- Because 1 kilogram of
Kerson Fruit has an
average of 750 ml juice
extract.
3. Clarification/Purification a. Kerson Fruit Extract
b. Milk of Lime
47
- It is use to increase 2.250 liters of Kerson Fruit
the ph level of the Extract + 0.002 liters of lime
raw Kerson Fruit = 2.2502 liters
extract. It is also used
as a clarifying agent
to bleach the extract
solution.
 0.34 grams or 0.00034
liter of lime is required
for every liter of Kerson
Fruit extract. Therefore,
for 1.875 liters of extract,
0.00073 liters of lime is
needed.
4. Filtration 2.250765 liters of purified
Kerson Fruit extract 90 %
*Because during filtration,
at least 10% of the extract is
loss.
5. Vacuum-evaporation 2.0256885 liters of filtered
Kerson Fruit Extract 65%recovery from the
previous stage
48
*Because during
evaporation, an average of
35% of the extract is loss.
6. Crystallization 1.316697525 liters of 80 % recovery from the
Vacuum-evaporated Kerson previous stage
Fruit extract
*Because during
crystallization, an average of
80% of the solution is yield.
8. Filtering of Crystals 1.05335802 liters or 1.0534
kilograms of crystallized Recovery depends on the
Kerson Fruit extract results of crystallization.
Small and large crystallized
parts will be separated with
each other.
9. Granulation - The recovery depends on the
yield of the previous stages.

49
Figure 4.1 Sample Packaging
Figure above is the sample packaging of Sugaresa. The Proponents will distribute the
product in small boxes containing 50 packets of 2 grams single usage. Total weight for each box
is 100 grams (50 packets X 2 grams). And it will be unitized using cardboard boxes containing 50
small boxes. Total weight of each cardboard box is 5,000 grams equivalent to 5 kgs of Sugaresa.
Figure 4.2 Small box containing 50 packets (10 cm x 7 cm x 5 cm)

50
Figure 4.3 Isometric View of Card Board box for unitizing (content: 50 small boxes)
51
4.3 Manufacturing Process
START A
Prepare Materials
Evaporation
Needed
Washing Crystallization
Juice Extraction Granulation
Heating Primary Packaging

with sealed
Filtration
No Conform to
specified
weight?
Yes
Is there any Yes
impurities?
Final Packaging
No
A
End
Figure 4.4 General Process Flow Chart
Description of the Process
 Preparation of Raw Materials
Aside from manufacturing sugar, the company will also cultivate the kerson tree. One of
the main constraints that the proponents are facing is the source of Kerson fruit. Although there
are other countries that export this fruit, the proponents opted to cultivate trees and harvest the fruit
52
instead of importing. The workers assigned in the cold storage will be the one who are preparing
the raw materials including the milk of lime.
 Cleaning/Washing of Kerson Fruit
After preparing the raw materials needed for the production, the next process it will
undergo is washing. This process takes place to remove unwanted dirt that stick onto the fruit while
transporting.
 Juice Extraction
After ensuring that the fruits are clean, the next process is the Juice Extraction. The Kerson
fruit will put into fruit pulper machine. Each fruit will squeezed individually in between of two
rolling drums. In addition, this machine will do the preliminary filtering of extract.
 Heating
This process takes place in order to purify the juice extract before proceeding to the next
process. Milk of lime will be added in order to neutralize the Kerson extract since it possess a bit
sour taste. In addition, this material will make filtering process easier since it the impurities will
settle down.
 Filtration
This process includes removing both insoluble and soluble impurities that have not
removed through preliminary filtering. Other non-sugar impurities will remove by means of
continuous filtration. Since it is necessary to put some hot water in the extraction process, the final
53
clarified juice contains water. In this process, the raw extract still has the same composition except
that it is now free from impurities.
 Evaporation
This takes place to make the clarified juice extract concentrated. This process will use
Multiple-effect evaporator which an efficient tool used for evaporating water.
 Crystallization
Crystallization takes place using a vacuum pan. Once the extract becomes syrup, it will
undergo continuous heating process until saturated with sugar.
 Granulation
The next process after the centrifugation is the granulation. In this process, damp sugar
crystals dried by being tumbled through heated air in the granulator. Then, dry sugar crystals sorted
via vibrating screens. Crystals that have a size of greater than 4.0 mm are then return to the
granulator to transform it into granule size.
 Primary Packaging
After granulating the sugar crystals, it will be transported to the packaging area wherein
the desired weight will manually repack then sealed. Packaging weight will comes in to 4 standard
weights; 1 kilogram, ½ kilogram and ¼ kilogram and 2 grams (for sachet packs of Sugaresa).
54
 Quality Control
After the primary packaging, it will be transported to quality control area wherein the
worker will assure that the packaging has no leakage and the product conforms to the specified
weight.
 Final Packaging (Casing)
The last process will be the final packaging or casing. In this process, the primary packed
product will be put and sealed inside a box (the quantity per boxes depends on the standard weight).
This process will take 3 mins to arrange it inside the box and sealed
4.4 Production Schedule
For the production schedule, the company would have one shift per day, from 8 A.M. to 5
P.M. including a 1 hr. lunch break. While the operations chart shown below is provided to show
the machine capacity per process that is significant in scheduling the production of the Sugaresa.
The standard time used per operation was based on the manufacturing process of almost the same
product.
55
8000 pakcets/ 60 mins
12000 pakcets/ 60 mins
Figure 4.5 Operations Chart
Conversion
500 packets = 1 kgs
50 boxes = 5 kgs
56
Table 4.3 Computation for Standard Time
Process Machine Capacity Standard Time
Unit Hours Unit/Min Min/Unit
Washing 100 1 1.667 0.600
Juice Extraction 250 1 4.167 0.240
Heating 1000 1 16.667 0.060
Filtration 1000 1 16.667 0.060
Evaporation 3000 1 50.000 0.020
Crystallization 5000 1 83.333 0.012
Granulation 90 1 1.500 0.667
Primary 16 1 0.267 3.750
Packaging
Quality Control 24 1 0.400 2.500
Final Packaging 7.0 1 0.127 7.857
As Observe on Figure 4.5, output per process have different units. So, the proponents
translate the unit of output per process all into kilograms. Based on the conversion, 500 packets is
equal to 1 kilograms, therefore, output in primary packaging is equals to 16 kilograms per hour.
And output on the Quality Control Process is equal to 24 kilograms per hour.
The concept of Line Balancing is used in order to determine the number of work stations
needed and the total output to be produced per year. The demand per day computed on the market
57
study and the machine capacity provided on the previous part is used to determine the Takt time.
The results of the line balancing method based on this information are shown as follows:
Table 4.4 Assembly Line Details for the 1st year of Production
Assembly line details (2019)
Demand per day (Kg) 142
Working Hours per day 8
No. of Working days per month 24
Total available hours per month 192
Downtime (mins) 50
% Efficiency 75%
Effective Time per day (Hrs) 5.4
Overtime 0
For the first year of operation, 142 kilograms of Sugaresa is the desired output per day
which is equivalent to 71,000 sachet (2 grams per sachet; each box contains 50 sachets). Four
workers are assign for the final packaging. In addition, 2 machines for primary packaging is needed
in order to have an output of 71,000 packets. 164 kgs of Sugaresa is the total output. Excess in
production will be categorized as inventory. Total Number of Production worker needed for the
first year of operations is 15.

58
Table 4.5 Line Balancing for Year 1
Standard Machine Effective Takt No. of Station Average Output

Process
Time Downtime Efficiency Time Time Exact Rounded Off Time % Load per day
Washing 0.600 50.000 75% 322.500 2.271 0.264 1.000 0.600 0.305 164.182
Juice Extraction 0.240 50.000 75% 322.500 2.271 0.106 1.000 0.240 0.122 164.182
Heating 0.060 50.000 75% 322.500 2.271 0.026 1.000 0.060 0.031 164.182
Filtration 0.060 50.000 75% 322.500 2.271 0.026 1.000 0.060 0.031 164.182
Evaporation 0.020 50.000 75% 322.500 2.271 0.009 1.000 0.020 0.010 164.182
Crystallization 0.012 50.000 75% 322.500 2.271 0.005 1.000 0.012 0.006 164.182
Granulation 0.667 50.000 75% 322.500 2.271 0.294 1.000 0.667 0.339 164.182
Primary Packaging 3.750 50.000 75% 322.500 2.271 1.651 2.000 1.875 0.955 164.182
Quality Control 2.500 50.000 75% 322.500 2.271 1.101 2.000 1.250 0.636 164.182
Final Packaging 7.857 50.000 75% 322.500 2.271 3.460 4.000 1.964 1.000 164.182
Table 4.6 Assembly Line for the 2nd year of Production
Downtime (mins) 50
% Efficiency 75%

59

Process
Washing 0.600 50.000 75% 322.500 1.671 0.359 1.000 0.600 0.382 205.227
Heating 0.060 50.000 75% 322.500 1.671 0.036 1.000 0.060 0.038 205.227
Filtration 0.060 50.000 75% 322.500 1.671 0.036 1.000 0.060 0.038 205.227
Evaporation 0.020 50.000 75% 322.500 1.671 0.012 1.000 0.020 0.013 205.227
Granulation 0.667 50.000 75% 322.500 1.671 0.399 1.000 0.667 0.424 205.227
Quality Control 2.500 50.000 75% 322.500 1.671 1.496 2.000 1.250 0.795 205.227
Final Packaging 7.857 50.000 75% 322.500 1.671 4.702 5.000 1.571 1.000 205.227
Additional one sachet-filling machine and one final packaging stations are needed to reach
the desired operation for the 2nd year of operation. Desired output is 196 kilograms only, excess in
production will be added as inventory for unexpected increase in demand.
Table 4.8 Assembly Line for 3rd year of Production
Downtime (mins) 50
% Efficiency 75%
.
60

Process
Washing 0.600 50.000 75% 322.500 1.226 0.489 1.000 0.600 0.535 287.318
Heating 0.060 50.000 75% 322.500 1.226 0.049 1.000 0.060 0.053 287.318
Filtration 0.060 50.000 75% 322.500 1.226 0.049 1.000 0.060 0.053 287.318
Evaporation 0.020 50.000 75% 322.500 1.226 0.016 1.000 0.020 0.018 287.318
Granulation 0.667 50.000 75% 322.500 1.226 0.544 1.000 0.667 0.594 287.318
Quality Control 2.500 50.000 75% 322.500 1.226 2.039 3.000 0.833 0.742 287.318
Final Packaging 7.857 50.000 75% 322.500 1.226 6.408 7.000 1.122 1.000 287.318
On the 3rd year of production, the desired output increases to 263 kgs per day, in order
finish 263 kgs, additional 1 sachet-filling machine, additional quality control personnel and 2 final
packaging stations should be added. Excess 24 kgs will be added to inventory.
Table 4.10 Assembly Line Details for the 4th year of Production
Downtime (mins) 50
% Efficiency 80%

61
Table 4.11 Line Balancing for year 4

Process
Washing 0.600 50.000 80% 344.000 0.964 0.623 1.000 0.600 0.640 366.933
Heating 0.060 50.000 80% 344.000 0.964 0.062 1.000 0.060 0.064 366.933
Filtration 0.060 50.000 80% 344.000 0.964 0.062 1.000 0.060 0.064 366.933
Evaporation 0.020 50.000 80% 344.000 0.964 0.021 1.000 0.020 0.021 366.933
Granulation 0.667 50.000 80% 344.000 0.964 0.692 1.000 0.667 0.711 366.933
Quality Control 2.500 50.000 80% 344.000 0.964 2.594 3.000 0.833 0.889 366.933
Final Packaging 7.857 50.000 80% 344.000 0.964 8.154 9.000 0.873 0.931 366.933
Improving the machine efficiency to 80% in order to finish 357 kgs of output per day. In
addition, 2 workers in final packaging is needed. Excess 9 kilograms in output will be added to
inventory.
Table 4.12 Assembly Line Details for the 5th year of Production
Downtime (mins) 50
% Efficiency 80%

62
Table 4.13 Line Balancing for year 5

Process
Washing 0.600 50.000 80% 344.000 0.708 0.848 1.000 0.600 0.900 516.000
Heating 0.060 50.000 80% 344.000 0.708 0.085 1.000 0.060 0.090 516.000
Filtration 0.060 50.000 80% 344.000 0.708 0.085 1.000 0.060 0.090 516.000
Evaporation 0.020 50.000 80% 344.000 0.708 0.028 1.000 0.020 0.030 516.000
Granulation 0.667 50.000 80% 344.000 0.708 0.942 1.000 0.667 1.000 516.000
Quality Control 2.500 50.000 80% 344.000 0.708 3.532 4.000 0.625 0.938 516.000
Final Packaging 7.857 50.000 80% 344.000 0.708 11.100 12.000 0.655 0.982 516.000
From the first year desired output that is 142 kilograms, it increases up to 486 kilograms
of Sugaresa per day for the fifth year. Additional machine investment and worker for final
packaging is needed.
Table 4.14 Summary of Total number of Workstation Needed per Process
Process No. of Workstation
Year 1 Year 2 Year 3 Year 4 Year 5
Washing 1.00 1.00 1.00 1.00 1.00

Juice Extraction 1.00 1.00 1.00 1.00 1.00
Heating 1.00 1.00 1.00 1.00 1.00
Filtration 1.00 1.00 1.00 1.00 1.00
Evaporation 1.00 1.00 1.00 1.00 1.00
Crystallization 1.00 1.00 1.00 1.00 1.00
Granulation 1.00 1.00 1.00 1.00 1.00
Primary Packaging 2.00 3.00 4.00 4.00 6.00
Quality Control 2.00 2.00 3.00 3.00 4.00
Final Packaging 4.00 5.00 7.00 9.00 12.00
63
Total: 15.00 17.00 21.00 23.00 29.00
4.5 Machine, Equipment and Accessories
The list of machineries and equipment will help the proponents to evaluate the area needed
for the facility layout. The size and quantity of the machines and equipment will be one of the
factors to consider in calculating the needed plant size.
Table 4.15 List of Machines Needed
Machineries and Name and Description Specifications Price per Unit
Equipment
Fruit Pulper Machine Dimension: ₱ 586, 500.00
is suitable for
1900*670*1695
squeezing variety of
Mm
fruit and vegetables.
This is also suitable Power Supply:
for separating residues

2.2 kw
and pulps from fruits
and various berries. Capacity: 2 to 5 ton per
day
(1,400 RPM)
64
Juice Heating Dimension: ₱ 51,126.55
Machine is used to
2100 x 500 x 650 mm
purify the juice extract
Power Supply:
before entering into
the filtration process. 2.2 kw
Capacity:
1000 liters/hour
Fruit Juice Filtering Dimension: ₱ 20,400.00
Machine is used for 1050 x 420 x 1087 mm
removing sediment,
Power Supply:
clarifying the juice
2.5 kw
and reducing spoilage
organisms to protect Capacity:
the quality and extend

2 tons per hour
the shelf life of the
fruit juice.
Multiple Effect Dimension: ₱ 678,741.00
Evaporator is used to
1700 x 850 x 2600 mm
concentrate the
Power Supply:
65
clarified fruit juice 132 kilowatts
extract.
Capacity:
Evaporation Capacity:
5000 kg/hour
Outlet Volume Flow: 1
cubic meter per sec.
Vacuum Pan Dimension:
Evaporator is used for

3048 x 1829 x 2439 ₱ 52,222.77
the crystallization of
mm
concentrated juice
Power Supply:
extract.
15 Hp
Capacity:
Maximum
temperature:150 C
Water Evaporation
Capacity: 5000 kg. per
hour
66
Granulator Machine is Dimension: ₱ 408,000.00
used to process damp

1.9x1.3x1.35 meters
sugar crystals in order
Power Supply:
to form it into granule
size. 5.5 kw
Capacity of Cone Mill:
60 kilograms per hour
Sugar Sachet Filling Dimension: ₱ 141,270.00
Machine is used to
1220x840x1960 mm
pack single use
Film Size: 290mm
portion of the finished
x450mm
products.
Power:
220 volts
Capacity:
1000 pouch per hour (5
grams to 500 grams)

67
The number of machines to purchase is based on the line balancing analysis wherein total
number of workstations were identified in order to meet the demand. In addition, the machines and
equipment will be imported from India and China.
4.6 Plant Location
The selection of location is important for new and established company. The location
choice is essential for new-established firms for its long-term success. Because the primary
objective of the company is to maximize its profits which can be done either by increasing sales
or by decreasing cost of production, choosing the location should be done properly. If a company
is located near its potential market, then the organization can have better market and thus can make
more effective production and marketing strategies to increase their sales.
4.6.1 Site Location
Aside from identifying the number of workstations, plant location is one of the most
important thing to assess and to evaluate. The table below will show the critical factors to consider
in choosing the most suitable facility location.
Table 4.16 Critical Success Factor
Critical Success Factors Description

Proximity with This factor garnered the highest possible weight because the raw
Plantation materials to be used are mainly Kerson fruits, with that in mind the
freshness and the quality of the fruit may be altered because of long
drive if the facility location is not near the plantation. A weight of
68
0.40 is assigned to indicate the extreme importance of locating the

facility near the plantation area.
Proximity with Market Production has no value without consumption. Consumption
involves market that is selling goods or products to the consumers.
The proponents find it useful to locate the facility close to its
consumers to avoid too much expense on transportation of finished
goods. A weight of 0.20 is assigned to indicate the importance of
locating the facility near its market.
Labor Availability Availability of required manpower skilled in specific trades is yet
another deciding factor for the location. Hiring workers that is less
expensive yet competitive and skilled is a great way to be in a good
business position. A weight of 0.15 is assigned to indicate that this
factor is moderately important in choosing the ideal location for the
company.
Ease of Transportation Transportation also an integral part of doing business, being near
highway will lessen the cost for gasoline and other vehicular
expenses. A weight of 0.15 is assigned to indicate that this factor is
equally important with labor availability in choosing the ideal
location for the company.
Infrastructural Facility Building infrastructure should also be considered and the type of
community for the site to be built. A weight of 0.05 is assigned to
indicate that this factor is less important in choosing the best
location for the company.
Local Tax Considering the local tax where the facility because in provinces
lower taxes are being collected rather than in the megacities. A
weight of 0.05 is assigned to indicate that this factor is equally
important with infrastructural facility in choosing the best location
for the company.
69
Table 4.17 and Table 4.18 shows the computation and the method to identify what site is
feasible and best for the location of facility. The potential sites assessed are listed as follows:
Site A: Brgy. Balagtas, San Rafael, Bulacan
Site B: Brgy. Pacalag, San Miguel, Bulacan
Site C: Brgy. Coral Bato, San Rafael, Bulacan
Table 4.17 Critical Success Factors with its Corresponding Management scores and Weights
Critical Success Factors Weight Score ( 1 - 100 )
Site A Site B Site C
Proximity with Plantation 0.40 60 90 30
Proximity with Market 0.20 60 40 85
Labor Availability 0.15 40 60 80
Ease of Transportation 0.15 45 60 55
Infrastructural Facility 0.05 50 50 50
Local Tax 0.05 60 70 60
Total 1.00
Table 4.18 Weighted Scores
Critical Success Factors Weight Score ( 1 - 100 )
Site A Site B Site C
Proximity with Plantation 0.40 60 x .40 90 x .40 60 x .40
Proximity with Market 0.20 60 x .20 40 x .20 85 x .20

70
Labor Availability 0.15 40 x .15 60 x .15 80 x .15
Ease of Transportation 0.15 45 x .15 60 x .15 55 x .15
Infrastructural Facility 0.05 50 x .05 50 x .05 50 x .05
Local Tax 0.05 60 x .05 70 x .05 60 x .05
Total 1.00 54.25 68.00 66.75
By using the Factor Rating Method, the facility location was determined. The highest total
score was Site B or in Barangay Pacalag, San Miguel, Bulacan. Amongst the three other options
for the facility location, Site B yielded the highest possible score.
The facility to be located in Barangay Pacalag, San Miguel, Bulacan have a lot size of
77,486 sq. m. It is a wide agricultural land that can be converted into an industrial facility. The
remaining area will be allocated for the plantation of the Kerson trees.
Figure 4.6 Actual Photo of Plant Location

71
Electricity and internet

connectivity is present
near the facility location.
Road is leading to a bypass road

connecting to various places near
San Miguel, Bulacan.
Figure 4.7 Electricity Post near the Facility and Road Leading to a Bypass Road
Figure 4.8 Satellite View of the Facility Location

72
Figure 4.9 Zoning Map

73
The main route would be from Plaridel crossing just straight ahead to find San Miguel. The
facility is 1 hour and 30 minutes away from the highway. A bypass is being constructed in Plaridel
that will be beneficial for the facility since it spread through San Rafael. This might lessen the
travel time going to the main highway. (See Figure 4.7)
The alternate route would be from Calumpit going through Sto. Tomas, Sta. Ana and
Candaba Pampanga. It would take 1 hour and 35 minutes to get to the facility location. (See Figure
4.11)
Figure 4.10 Main Route

74
Figure 4.11 Alternative Route
Table 4.19 SWOT Analysis for Location
 Easy access for  Benchmarking to  Plantation  Less light post on
suppliers and for direct and Expansion is the roads
delivery through indirect much easier since  Seldom roaming
the nearby bypass competitor was there many of the barangay
road and NLEX. somehow available patrols on the site
difficult agricultural land

75
 Accessible for the  The road is not  Gasoline
workers through accessible for stations, super
tricycles and jeeps markets and
private cars  The site is not other commercial
 There are no accessible for buildings are
manufacturers walking accessible for
of the same just 15 mins
product near  Waste Disposal
the area is much easier
 Large agricultural since compost pit
land was only needed
 Less Prone to
natural disasters
like flood
Site Justification
Barangay Pacalag, San Miguel, Bulacan is an agricultural land and it is the ideal location
for the company since the raw material of the product will be coming from its own plantation. In
addition, roads are accessible and heavy traffic is not present in the area. There are also available
lots near the site if ever the company wants to expand their production as well as the plantation. It
is also a flood free area. In terms of location it is accessible through tricycles and private vehicles.
76
Figure 4.12 Tax Declaration of Real Property

77
4.6.2 Facility Layout
Matrix diagram illustrates the relationship of rooms and area whether they must be adjacent with
each other. It is followed by a bubble diagram which shows the size allotment for each rooms and
areas.
Figure 4.13 Relationship Diagram for Ground Floor
Value Closeness
A Absolutely Important
E Especially Important
I Important
O Ordinary Closeness
U Unimportant
X Undesirable
78
Figure 4.14 Relationship Chart for Second Floor
Bubble diagram
Bubble diagram represents the space of each area in the company
Figure 4.15 Bubble Diagram for Second Floor

79
Figure 4.16 Bubble Diagram for Ground Floor
Table 4.20 Production Size Details
Production Area Dimensions Area (sq. m.)
Washing Area 4.00 4.00 16.00
Extracting Area 4.00 2.55 10.20
Heating Area 4.29 2.55 10.94
Filtering Area 3.10 2.35 7.29
Evaporation Area 3.00 2.85 8.55
Crystallization Area 3.85 5.10 19.64
Granulation Area 2.85 3.50 9.98
Initial Packaging Area 4.15 5.60 23.24
Quality Control Area 3.85 4.00 15.40
Final Packaging Area 5.00 6.35 31.75

80
Total Production Area 152.97
Table 4.21 Ground Floor Details
Ground Floor Dimensions Area (sq. m.)
Dining Area 5.5 5.63 30.97
Lobby 2.3 4.93 11.34
Locker Room 4.41 2.46 10.85
CR 2.45 3.07 7.52
Clinic 2.06 3.77 7.77
Production Manager's 3.5 3.52 12.32
Office
Production 152.97
Maintenance Room 1.93 2.79 5.38
Janitor's Closet 1.88 2.82 5.30
Finished Goods Storage 4.24 15.02 63.68
Raw Materials Storage 3.75 3.3 12.38
Pump Room 1.93 2.79 5.38
Parking Lot 11.22 23.24 260.78
Total Area 586.65
Table 4.22 Second Floor Details

81
2nd Floor Dimensions Area (sq. m.)
Administrator office 4.5 3.61 16.25
Secretary 1.42 2.26 3.21
Accountant 3.65 2.8 10.22
Bookeeper 3.65 2.03 7.41
Marketing and Sales Manager 3.65 2.8 10.22
Marketing Agent 2.62 2.83 7.41
Sales Officer 2.62 2.83 7.41
HR Manager 2.25 4.55 10.24
Purchasing and Inventor 3.65 2.8 10.22
Manager
Agriculture Engineer 3.65 2.8 10.22
Conference Room 3.06 3.36 10.28
CR 2.72 1.06 2.88
Total Area 105.97
Table 4.23 Warehouse Capacity
Warehouse Capacity
Raw Materials Number of Pallets: max of 25 pallets
Capacity: Up to 15 kilograms of Kerson Fruit
Number of Industrial Ref: 2

82
Dimension: 1.829 m x 0.915m x 2.134 m
Capacity : can hold up to 14 Lab Pack Drum with Metal-level

Lock Container (381 mm wide x 673 mm tall)
*each lab pack drum can hold up to 30 gallons of extract
Other Accessories:
 Storage Cabinet for Raw Materials

Dimension: 1220 x 610 x 1829 mm
Capacity: 1,000kg
 Manual Trolley
Capacity : 500 kgs
Total Capacity (Extract): 840 Gallons of extract
Total Capacity (Kerson Fruit): 375 kgs
Finished Goods Number of Storage Racks: Max 5 racks (4-layered rack)
*Each Layer can hold up to 1,000 kgs
Number of Cardboard Box: 408 cardboard boxes per rack
*Each Card board box contains 50 boxes (5 kgs per box)
Other Accessories:
83
 Manual Forklift/ Jack Pallet

Capacity: Up to 1,000 kgs
Total capacity: Up to 2,040 cardboard boxes equivalent to

102,000 small boxes with 50 packets x 2 grams inside (Output for
2 month)
Interrelationship Analysis
Table 4.24 Room Description
ROOM DESCRIPTION AND JUSTIFICATION
Production Area Description:
A place where the process of manufacturing goods is done.
Justification: the total area of the production is 152.97 sq. meters. It is

designed based on the operation, machines and capacity.
84
Warehouse for Raw Description:

Materials
A room used for storing extract of raw material that is the kerson fruit.
Justification: the total area for the raw materials warehouse is 12.38 sq.
meters. It was based on total number of wooden pallet, industrial ref
and storage cabinets that are needed.
Warehouse for Description:

Finished Goods
A room used for storing finished goods.
Justification: total area for the finished goods’ warehouse is 63.68 sq.
meters. Enough to hold 1,179 cardboard boxes that contains 50 small
boxes. Each small box contains 50 sachets.
Dock Area Description:
Also called as loading bay is an area of a building where goods are

loaded and unloaded.
Justification: for inbound of raw materials, 4.5 sq. meters is enough to

hold up to 30 wooden pallet box.
For outbound of finished goods, 4.5 sq. meters is also allotted, enough
to hold up to 135 cardboard boxes.
Maintenance Room Description:
room designated for spare parts and other supplies for maintenance. It
is a room for maintenance personnel.
Justification: The total area for maintenance room is 6 sq. meters,

enough to hold storage cabinets for tools and other spare parts of
machines.
85
Waste Area and Description:

Janitor’s Closet
a room for janitor’s cleaning materials as well as for the waste from
the production and other parts of the plant.
Justification: total area for the waste area and janitor’s closet is 6 sq.
meters. Enough to hold 1 week waste from production.
Locker Room Description:
it is a room for workers’ personal belongings. Locker rooms must be

accessible within 200 ft and should be well ventilated for it was the
placed were the workers changed the sweat clothes.
Justification: total area for locker room is 14 sq. meters. Enough for up
to 30 workers.
Description: A room for personal hygiene.
Comfort Room for line Justification: Space requirement for comfort room for the workers is 6
workers sq. meters with 2 lavatories and 4 cubicles.
Clinic Description:
room for first aid treatment since it will be the most economical to
provide.
Justification: space needed for the clinic is 10 sq. meters. It contains 2

beds and first aid kits
Pantry Description:
place to eat during break time. Company meetings will also be held in
this area
Justification: space requirement for the pantry is 35 m2 . 8 tables will

be provided (36 inches)
86
Employee Parking Description: A location that is designated for parking vehicles either
paved or unpaved
Justification: 121.624 m2 is the space allotted for employee parking

lot. Enough for 40 motorcycles, 5 cars and 1 delivery truck.
Office Requirements Description: room for middle and top management
Justification: space needed for the office has a total of 100.24 sq.
meters
Plant Layout
The researchers designed the company layout based on the flow of materials from
plantation to delivery of finished goods. The raw materials storage is at the right side of the
company layout, slightly far from the entrance of the company compound. It have been liked this
because the company would get its primary material needed for the production from its own
plantation. The plantation is placed on the right side of the raw materials storage.
87
Figure 4.17 Plant Layout (Ground Floor)

88
Figure 4.18 Plant Layout (Second Floor)

89
Production flow will follow S-movement for efficient process flow. The production
manager’s office is nearby the production area for greater supervision on the job floor. The
administration offices are on the 2nd floor. The researcher designed the administration offices
overlooking the production, so that administrations have real time view on the production.
90
Figure 4.19 Employee and Vehicle Flow (First Floor)

91
Figure 4.20 Employee Flow (Second Floor)

92
Figure 4.21 Emergency Route (First Floor)

93
Figure 4.22 Emergency Route (Second Floor)

94
Figure 4.23 Plumbing Layout (First Floor)

95
Figure 4.24 Plumbing Layout (Second Floor)

96
Figure 4.25 Sanitary Layout (First Floor)

97
Figure 4.26 Sanitary Layout (Second Floor)

98
Figure 4.27 Plantation Layout

99
4.7 Raw Materials and Supplies
The main ingredient of the alternative sweetener “Sugaresa” is Kerson Fruit. It is a
sweetener that is purely made of Kerson extract. Since there is no plantation of Saresa in the
Philippines, the proponents will build its own plantation. Therefore, the proponents will not buy
from supplier but the company itself will cultivate Saresa for the production.
For the other ingredient like the milk of lime, it will be bought from a supplier. The table
below will show the suppliers and price of the components of Sugaresa.
Table 4.25 Raw Materials and Supplier
Material Supplier Price (Php)
Kerson Fruit (Own plantation) -
Milk of Lime H.T Mining Production 13.63
Resources Corp, Valenzuela Minimum of 1000kg
City
4.7.1 Kerson Fruit Plantation
The proponents opted to have their own plantation as the source of the main raw material,
which is the Kerson fruit. The initial lot size needed for the plantation area is 386,313.84 square
feet (35,889.73 sq. m) and is expected to expand for the next years. Each kerson tree requires
57.25 square feet, therefore 6,748 trees can be planted. In addition, each tree is expected to
produce at least 20 kilograms of fruit annually.

100
The processes involved from the plantation to the storage of fruits are illustrated by figure
4.28.
Table 4.26 shows the plantation details for the first year of operation. Although the total
lot size needed for plantation to suffice the first year’s demand is only 386,313.84 sq. ft., the
proponents will be buying the whole 77,486 sq. m. of agricultural land in Brgy. Pacalag since the
demand for the next years are increasing and the growing of trees should be considered.
77,486 sq. m. less the area requirement for the production plant (total area of 600 sq. m.)
will give an available 76,886 sq. m. for plantation. The available plantation area is enough to
supply the production demand up to year 3. Therefore, plantation expansion is needed before year
3 ends to have enough supply of raw material.
Table 4.26 Summary for Plantation Details (Year 1)
Lot size allotted for Kerson Fruit Plantation 386,313.84 sq. ft
Lot size allotted for each tree 57.25 sq.ft
Estimated number of trees can be planted 6,748 trees
Estimated Yield per tree (annually) 20 kgs.
Yield per year 134,956.80 kg

101
Figure 4.28 Simplified Process Flow for the Plantation
Schedule for Harvesting
Scheduling is not only for the production but also for the supplies. Table 4.27 and Table
4.28 will show how many trees are needed to harvest for weekly production based on assumptions.
Table 4.27 Harvesting Schedule (Non-Peak Season)
Total number of fruits needed per week 3,216 kgs
Assumed yield per tree (non-peak season) 1.5 kgs per week
Number of trees to harvest 2,144 trees
When to Harvest? Everyday
Table 4.28 Harvesting schedule (Peak Season)
Total number of fruits needed per week 3,216 kgs

102
Assumed yield per tree 3.6 kgs per week
Number of trees to harvest 894 trees
When to harvest? Everyday
Number of trees to harvest signifies how many trees were needed to harvest in order to
supply the needed raw materials in production. But obviously, during peak season , there were
the most number of trees available for harvesting. The farmers will harvest all those fruits then
will be stored in raw materials warehouse.
Proponents do not choose quarterly schedule of harvesting for two main reasons; the first
one is, birds will consume Kerson fruit if not harvest immediately and the second one is, Kerson
fruit will not last for more than 2 weeks even if it stored inside the freezer. Prolonging the stored
days of fresh fruit may affect the taste and the quality of the finished product.
Annually, the expected demand will increase by 30% on the previous’ year, thus the need
for raw materials will also increase. Land expansion for the plantation is required to suffice the
production demand. Table 4.28 will show the summary of the land expansion for the next 5 years
of production.
Lot size allotted for each tree was based on gardening standards. Distance between
plantings depends on variety of factors. A standard fruit tree which grows at maturity up to 18
feet tall and 25 feet wide and the width of the tree must be consider. (Grant, n.d.) Therefore, 57.25
sq.ft was the allotted lot size for each tree, giving them a 15 ft distance in between trees.
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Table 4.29 Summary of Lot Expansion for 5 years
Lot Size Needed for 386,313.84 525,060.36 715,496.76 971,225.64 1,322,172.72
the plantation (sq. ft.)
Lot size allotted for 57.25 57.25 57.25 57.25 57.25
each tree (sq. ft.)
Estimated number of 6,748 9,171 12,498 16,965 23,095
trees can be planted
Estimated Annual 20 20 20 20 20
Yield per tree (kg.)
Yield per year (kg.) 134,956.80 183,427.20 249,955.20 339,292.80 461,894.40
4.7.1. A. Scrap Rate
Scrap rate of harvested Kerson fruits is also provided to show the amount of fruits that do
not meet the quality standards of the company. Total raw materials needed for the production was
adjusted by 10% in considering the scrap rate.
Table 4.30 Scrap Rate
Scrap Rate
10 % 10% 10% 10% 10%

104
Lot Size Needed for the plantation (sq. ft)
1,400,000.00
1,200,000.00
1,000,000.00
800,000.00
600,000.00
400,000.00
200,000.00
0.00
Figure 4.29 Illustration of Lot Expansion for the Plantation
Material handling needed for harvesting and transfer to the storage area is required to
specify. Table 4.31 will show the summary of material handling details. Moreover, labor
requirement inside the plantation is also identified and discuss on the last chapter of technical
study.
Table 4.31 Summary of Material Handling Process

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4.7.1. B. Plantation Management
Kerson tree is a fast growing tree especially in tropical areas like the Philippines. The tree
can give fruits everyday but its peak season is during warmer months. Based on existing studies,
this tree can grow 25 to 40 feet tall with a life span of at least 7 years. However, its ability to
produce fruits can reduce as it gets older.
Since the company is establishing a new plantation, certain actions need to be implemented
to ensure the success of the plantation area over a long period of time. These actions are shown as
follows:
4.7.1. C. Initial Land Preparation
The purpose of land preparation is to provide the necessary soil conditions and establish
management practices that will enhance the successful growth of the Kerson trees. Based on
available researches, Kerson trees can grow in the worst soil conditions where others tree cannot
survive. Even though this tree has a high tolerance for drought, it still needs a lot of water as well
as fertilizers to maximize its fruit growth.
Some of the factors needed to consider in the initial plant preparation are: (a) Field
selection; (b) Water irrigation system; (c) Fertilizers for pre-plant soil improvement; (d) Tools and
equipment for cultivation and; (e) Labor requirements.
 Field Selection for Expansion

106
The initial lot size needed for the plantation is 386,313.84 square feet. Since the production
demand is increasing as production years goes by, land expansion is needed in order to keep up
with the increasing demand. An additional lot size of 495,002.377 square feet is needed to suffice
the demand for 5 years. Considering this, Invictus Magni Corporation have to lease or buy an
additional plantation area. The expansion should be located where it can be easily accessed to
avoid too much transportation cost.
The additional plantation area will also be located at Brgy. Pacalag, few meters away from
the plantation. Market price of the land is Php 59 per sq. meter, it is expensive by 50% compared
with the original plantation. The land can be used for development of warehouse or can be used as
plantation area.
4.7.1. D. Water Irrigation System
Kerson fruit is drought tolerant but it still need a large quantity of water for its sustainable
growth. Proper watering of trees will let the roots to grow deep and spread out to provide a sturdy
base for the tree. Some of the irrigation tips to help keep the Kerson trees healthy are:
Table 4.32 Proper Way to Irrigate Trees
1. Kerson trees should be watered enough to penetrate the soil to a
depth of at least 18 inches. The watering schedule depends on the
type of the tree and the season.

107
2. Newly planted trees require more water. It is because new trees
have not yet spread their roots out into the surrounding soil.
3. Trees should be watered for long periods of time, but the watering
should occur less frequently.
4. Avoid overwatering to keep the trees getting enough oxygen they
need to stay healthy.
(Source: Affordable Lawn Sprinklers)
Furthermore, the irrigation system should ensure that the Kerson trees are receiving the
required amount of water. The most efficient way to deliver water directly to the roots is by using
drip irrigation system. Drip watering system also provides the most uniform watering among other
system. In addition, drip system can achieve the same amount of tree growth using less water
(Water Flow Rate = 2 liters per hour). It also prevents disease transmission because drip system
requires the water flow to be filtered to avoid clogging.
Drip irrigation system distributes water on the plantation area through network of valves,
pipes, tubing, and emitters. It can be the most efficient compared to other types of irrigation
systems depending on how well it is designed, installed, maintained and operated. The illustration
of a drip irrigation system is shown as follows:

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Figure 4.30 Illustration of Drip Irrigation System
The components used for the installation of drip irrigation are listed on the following table:
Table 4.33 Components of Drip Irrigation System
a. Pump or pressurized d. Pressure Control Valve g. Smaller diameter polyethylene
water source tube (often called "laterals")
b. Water Filtration e. Distribution Lines h. Poly fittings and accessories
Systems: Sand (Pipes)
Separator; Fertigation
Systems
c. Backwash Controller f. Hand-operated, i. Emitting devices at plants
electronic, or hydraulic (emitter or dripper, micro spray

109
control valves and safety head, inline dripper or inline drip
valves tube)
An illustration on how drip irrigation system is installed is also provided as follows:
Figure 4.31 Drip Irrigation System Installation
4.7.1. E. Supplies and Utilities
All the supplies needed for the plantation of Kerson trees are shown on the table below:
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Table 4.34 Plantation Equipment
Particulars Quantity Unit Price Total Price (₱)

(₱)
Drip Irrigation System (Components N/A 27985(per 531,715.00
and Installation Cost) acre)
Tractor-trailer 3 180,000.00
60,000.00
Farm Tractor 1 250,000.00
250,000.00
Total Cost 961,715.00
Table 4.35 Plantation Supplies
Particulars Quantity Unit Price (₱) Total Price (₱)
Organic Fertilizer 1 ton 19,617.00 19,617.00
Shovel 20 606.83 12,136.60
Digging Spade 10 1,037.85 10,378.50
Rake 10 1,071.00 10,710.00
Pick-axe 10 1,221.45 12,214.50
Pruning Shears 10 1,735.11 17,351.10
Wheel Barrow 10 1,590.64 15,906.40
Grass Cutter 10 5,625.00 56,250.00
Gardening Boots 21 491.13 (per pair) 10,313.73
Gardening Work Gloves 21 362.21 (per pair) 7,606.41

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Total Cost: 172,484.24
4.7.1. F. Growth Rate of Kerson Tree
The growth rate of Kerson tree should also be considered in order to match the production
schedule with the harvesting of fruits. Based on existing studies, Kerson tree is a fast-growing
tree but it grows best in lowland tropical areas where the annual daytime temperatures are within
the range of 22 - 32° Celsius. It is also tolerant of most soil types including acidic and alkaline
soils but not on saline conditions.
If the Kerson tree would be propageted from seedlings, it would take 1 year before it can
give fruits depending on the cultivation methods used. Some of the potential propagation methods
for Kerson tree are listed as follows:
1. Squeezing the seeds of the Kerson fruit directly into the field.
2. Cleaning and drying the seeds before planting.
3. Harvesting the shoots coming up from established Kerson trees for replanting.
4. Soaking the seeds to vinegar to duplicate the effects of the seeds passing through the
birds’ digestive tract (or soaking seeds for a quicker germination).
Purchasing grafted Kerson trees from Southeast Asian countries and other tropical
countries can also be considered to reduce the waiting time for harvesting. However, it would
take at most 1 year to grow into maturity.
4.8 Supplies
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Supplies are vital to a manufacturing firm. For this supplies help to make continuous flow
of production. Also supplies are primary tools for office activities and even in production.
Table 4.36 Office Supplies
Office Supplies Quantity Unit Price (Php) Total Price (Php)
Pen 2 box (12pcs) 63.50 127
Pencil 1 box (12 pcs) 84.75 84.75
Whiteboard Marker 5 pcs. 53.50 535
Marker Refill Ink 3 pcs. 43.50 130.50
Highlighter 6 pcs. 35.00 210
Sharpener 2 pcs. 20.00 40.00
Correction Tape 3 pcs. 50.00 150.00
Scotch Tape 5 rolls 10.00 50.00
Paper Clip 1 box 45.50 45.50
Binder Clip 2 box 35.50 71.00
Stapler 2 pcs. 55.00 110.00
Puncher 2 pcs. 120.00 240.00
Staple Wire 10 boxes 25.00 per box 200.00
Scissors 3 pairs 35.75 107.25
Logbook 1 pc. 94.75 94.75
Notepad 5 pcs. 48.50 242.50

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Sticky Note 3 pcs. 21.00 63.00
Bond Paper (Long) 1 reams 175.00 175.00
Bond Paper (Short) 1 reams 175.00 175.00
Bond Paper (A4) 1 reams 175.00 175.00
DTR Card 10 pads (100 pcs) 56.00 560.00
Folder (Long) 30 pcs. 8.00 240.00
Folder (Short) 30 pcs. 6.00 180.00
Total Cost per Month ₱ 4,006.25
Total Cost per Year ₱ 48,075.00
Office supplies and materials are vital to the administrative and management departments.
Especially for planning, designing, and organizing purposes. These are the primary tools for
administrative and managerial activities. Listed above are the common supplies needed for the
employees which must be provided by the company. Those items were for office works purpose
only.
Table 2.37 Office Furniture and Equipment
Office Furniture and Qty. Unit Price (Php) Total
Equipment
Water Dispenser 5 1,299.00 6,495.00
Desktop Computers 5 13,050.00 65,250.00
Multifunctional Printer 2 4,743.80 9,487.60
40” TV 1 8,500 8,500

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Indoor Plant 1 1,200 1,200
Quartz Wall Clock 1 259 259
Fire Extinguisher 14 1250 17500
Total 108,691.60
The tools and equipment listed below are the basic tools for the production and
warehouse movements. Transportation equipment and maintenance tools are also included in
the table.
Table 4.38 Production and Warehouse Tools and Equipment
Particulars Unit price Quantity Total
(PHP) Price(PHP)
Sink Unit with Drain Basket 678.59 2 1,357.18
Digital Check Weigher 1,357.19 1 1,357.19
Manual Forklift / Jack Pallet 10,439.98 2 20,879.96
Industrial Refrigerator 24,050.40 2 48,100.80
Manual Trolley/ Cart 8,016.80 5 40,084.00
Glass Carboy Container 1,459.40 10 14,594.00
Lab Pack Drum with Metal-level 1,822.95 10 18,229.50
Lock Container
Wood Pallet 832.5 10 8,325.00
Waste Container 938.36 2 1,876.72

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Maintenance oil and Coolant 10,600 1 10,600.00
Lubricant 650 7 4,550.00
Total 169,954.35
Table 4.39 Furniture and Fixtures
Total Depreciation per
Furniture and Fixtures Year
Bundy Clock 6,500.00 585
Wall Clock 100 9
Office Chair 9,487.60 853.884
Office Table 34,500.00 3105
Visitors’ Chair 2,097.00 188.73
File Cabinet 6,999.00 629.91
Locker Cabinet 2,300.00 207
Whiteboard 11,073.00 996.57
Air Conditioning Unit 35,997.00 3239.73
Lounge Sofa 40,000 3600
Center Table 2,150 193.5
Working Table 2,698.00 242.82
Industrial Workbench 16,132.95 1451.9655
Industrial Stool 4,694.30 422.487

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Storage Racks 4- shelves 5,215.90 469.431
Storage Cabinet for tools and 2,712.26 244.1034
equipment
Storage Cabinet for Raw 3,390.32 305.1288
Materials
Wooden Pallet Box 16,033.60 1443.024
Total 195,580.93 17,602.2837
One of the objectives of the company is to provide a safe and healthy workplace for the
employees. And with this, the company should provide safety equipment and medical supplies
for their employees. The table below shows the medical supplies of the company. The number of
fire extinguishers that the establishment will have is based on the Occupational Safety and Health
Administration (OSHA)’s standards.
The medical supplies must be always available and updated. And so, the company must
always monitor that the medical supplies is safe and not expired.
Table 4.40 Medical Supplies
Medical Supplies Unit Price (PHP) Quantity Total Price (PHP)
Blood Pressure kit 295 1 295
Cotton 50.75 2 101.5
Alcohol 55 2 110
Antiseptic Solution 133 1 133
Hydrogen Peroxide 39 2 78
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Tissue Paper 32.5 2 65
Pain killer medicine 4.85 50 242.5
Anti-diarrhea medicine 10 30 300
Adhesive bandage 2 10 20
Gauze Bandage 14 1 14
First aid tape 49 1 49
Elastic bandage 45 1 45
Scissors 20 1 20
Linment 45.5 2 91
Petroleum Jelly 35 1 35
Soap 18 5 90
Total 1,689
The company must have cleaning materials and equipment to maintain the cleanliness of
the company, primarily the production area. The company is a food manufacturing firm hence it
is vital to have clean and tidy production area.
Table 4.41 Cleaning Supplies
Particulars Quantity UOM Unit Cost Total Cost
Detergent 24 kgs 50 1200
Trash Bag 600 pcs 2 1200
Broom 6 pcs 70 420

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Dust pan 3 pcs 50 150
Rug 15 pcs 5 75
Floor Map 3 pcs 110 330
Pail 5 pcs 65 325
Dipper 5 pcs 15 75
Toilet brush 3 pcs 20 60
Hand Soap 2 pcs 69.75 139.5
Air Freshener 3 pcs 200 600
Tissue Paper 5 pcs 45 225
Plunger 3 pcs 35 105
Trash bin 5 pcs 90 450
Total Purchase 5354.5
4.9 Utilities
Utilities are also important in running a production. Here are the basic utilities that are
used by the company:
1. Electricity
Electricity is necessary for every manufacturing firm. Since every production process
uses electric powered machinery and equipment. It runs the production and operation of the
company. Meralco will be the supplier of the electricity of the company since the plant is
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located in Luzon, Region 3. The unit per charge of electricity is 9.39 pesos per kwh.
Table 4.42 Electricity Consumption in Production
Machine Power Supply Consumption per Day Cost
(kW) (kWh)
Fruit Pulper Machine 2.2 17.60 ₱ 165.26
Juice Heating Machine 2.2 17.60 ₱ 165.26
Filtering Machine 2.5 20.00 ₱ 187.80
Multiple Effect Evaporator 132 1,056.00 ₱ 9,915.84
Vacuum Pan Evaporator 11.19 89.52 ₱ 840.59
Granulator 5.5 44.00 ₱ 413.16
Sachet Filling Machine 2.2 17.60 ₱ 165.26
Daily Electric Consumption ₱ 11,853.18
Monthly Electric Consumption ₱ 284,476.44
Annual Electric Consumption ₱ 3,461,313.25
2. Water
It is essential for every company to have a proper installation of water. It is needed in
production process, maintenance and cleaning purposes. The proponents will install pumping
station connected to the river. As well as water from the rain will be collected then use inside the
plantation and production.
3. Transportation
Any means of land transportation can be used to reach the company. The table below will
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show the transportation expense for delivery.
Table 4.43 Transportation Expense for Delivery
Transportation Cost Year 1 Year 2 Year 3 Year 4 Year 5
Toll Fee 48,000.00 50,400.00 52,920.00 55,566.00 58,344.30
Fuel 32,256.00 33,868.80 35,562.24 37,340.35 39,207.37
Total 80,256.00 84,268.80 88,482.24 92,906.35 97,551.67
4. Communication
Telephone and internet connection are used in transacting and communicating with
suppliers and customers. PLDT is the internet and telephone provider of the company.
Table 4.44 Communication Expense
Monthly Communication Cost Php 3,000.00
Annual Communication Expense Php 36,000.00
5. Drainage
Drainage system is a very important utility; it helps in avoiding floods during rainy
seasons.
4.10 Waste Disposal
Proper disposal of waste is one of the important things to be monitored by every company.
Disposal of waste must not harm the environment. The company will make separation of
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biodegradable and non-biodegradable waste. Non-Biodegradable waste such as plastic bags,
container and other will be recycled. The company will sell it recycling firms. While the
biodegradable waste such as residue of saresa will used as organic fertilizer. Since the company
have plantation, instead of throwing the residue of saresa, it will be used for the plantation.
 Composting Biodegradable Waste
Since the raw material is a fruit and it is biodegradable, composting is the easiest, simplest and
cheapest way in disposing the waste from the facility. After extracting the kerson fruit’s juices the
pulps are then separated and disposed in the compost pit or bin where there are other natural waste.
After some time the compost pit will yield organic fertilizer that can be used in the plantation.
With that, the company can save fertilizer expenses due to the organic fertilizer available and at
the same time preventing the improper waste disposal. The company is able to help protecting the
environment by using this method.

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Figure 4.32 Image of Compost Bin
4.11 Direct Labor Requirements
The Invictus Magni Corporation employs workers that will be a great asset in the company,
someone who can deliver the job and produce great results in the production. The workers must
have
 the proper knowledge and skills in the job they’re applying for
 great attitude towards working with others
 great work ethics
 No health issues
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Table 4.45 Direct Labor Requirement Summary
Direct Labor No. of Laborers Job Description
General work in the 36 Someone who can do the

plantation basic things in farming such
as watering the trees, tilling
the soil, pruning the leaves
and applying organic
fertilizer.
Quality Check for harvested 3 Someone who is
Kerson fruit knowledgeable about good
qualities of a fruit to
determine whether the fruit
can use for production.
Washing 1 Someone who is able to wash
the kerson fruit carefully to
avoid mishandling of the raw
material
Extraction 1 Someone who is able to
operate fruit pulping
machine that squeezes out
the extract of the fruit
Heating 1 Someone who is able to
operate juice heating
machine.
Filtration 1 Someone who is able to
operate the fruit juice
filtering machine
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Evaporation 1 Someone who is able to

operate the multiple effect
evaporator
Crystallization 1 Someone who is able to
operate the vacuum pan
evaporator
Granulation 1 Someone who is able to
operate the granulator
machine
Primary packaging 2 Someone who is able to use
the sealing machine
Final Quality Control 2 Someone is able to check the
conformance of each product
to the set standard
Final Packaging 4 Someone able to put
Sugaresa into the box
carefully but fast to avoid
leakage
The table above shows the initial direct labor requirement to run the production. As year
goes by, direct labor will increase because of increasing demand. The next table will show the total
direct labor needed for the plantation. Given that for every one acre, 4 workers are needed.
Table 4.46 Direct Labor Requirement (Plantation)

Lot Size
Needed for 386,313.84 525,060.36 715,496.76 971,225.64 1,322,172.72
the
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plantation
(sq. ft.)
No. of 36 48 66 89 121
Labor
Needed
Table 4.47 Labor requirement for 5 Years
Year1 Year 2 Year 3 Year 4 Year 5
Production Worker 15 17 21 23 29
Material Handler 3 3 3 4 5
QC for Raw Materials 3 3 5 6 7
Maintenance 2 2 2 2 2
Farmers 36 48 66 89 121
Janitor 1 1 1 1 1
Security Guard 2 2 2 2 2
Supervisor 1 1 1 1 1
Driver 2 2 2 2 2
Warehouse Personnel 1 1 1 1 1
V. Management Study
Management is one of the important aspects in forming a business. The overall decision
making, planning and implementation of these plans relies on the management area. This includes
the executive people who runs the business, the people that they are going to hire for different
managerial and production position. Also, under the management part lies the consideration on
126
what form of ownership the business will be, the organizational structure, the objectives, mission
and vision of the firm, the source of funding or capital.
5.1 Objectives
 To identify what kind of business ownership will the firm follow
 To know the kind of fund sourcing or capitalization process the business will do
 To establish an organizational structure for the business with dependable, competent and
efficient workers that will help the company grow effectively
 To establish personnel requirement or qualification standard which defines the personnel’s
personality, academic background, experience and job description as well as wages and
benefits
5.2 Form of ownership
Invictus Magni Company is in the form of corporation. This means that the operation of
the business as a separate, legal entity guided by a group of officers known as board of directors
The business corporation is owned by the proponents of this feasibility study namely: Mr.
Gilbert Caballero, Ms. Recilla Corros, Ms. Addriene Ruth Cristobal and Ms. Liezel De Leon
5.3 Source of Capital

127
One of the primary sources for funding a starting up business partnership is the individual
savings of each partner. The amount of contribution depends on the partnership agreement but
Invictus Magni will generate funds from the equal contribution of each business partners to finance
their business start-up and operations. Based on computations, the initial project cost needed for
the company to operate is ₱35, 500,000. Since the company will be owned by the (4) proponents
of this study, each business partners will contribute 25% of the initial capital investment amounting
to ₱8,875,000.
5.4 Organizational Structure
Vision of the company
Our vision is to be a global leader in producing alternative sweetener from organic and
viable raw materials committed to make the world a healthier and a better place to live for the
people today and the future generation.
Mission of the company
Our mission is to provide a healthier choice of alternative sweetener to all individuals
around the globe that can be enjoyed by everyone. We offer integrative product from organic raw
materials to revolutionary promote healthy living for a more sustainable future.

128
Figure 5.1 Organizational Chart of Invictus Magni

129
5.5 Man Power Requirement
Table 5.1 Personnel Requirement
Job Title No. Required Responsibilities Qualification
Marketing and Sales 1 - Managing all marketing  Bachelor degree

head for the company and in Marketing,
activities within the Advertising or
marketing department. Promotion
 Qualified
Developing the marketing
chartered
strategy for the company
marketer.
in line with company
 Strong analytical
objectives. Coordinating
and project
marketing campaigns
management
with sales activities.
skills.
Overseeing the
 Confident and
company’s marketing
dynamic
budget.
personality.
 Strong creative
outlook.
- Creation and publication
 At least 2 years of
of all marketing material
experience in
in line with marketing
marketing or
plans. Planning and
advertising
implementing
promotional campaigns.
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Manage and improve lead

generation campaigns,
measuring results. Overall
responsibility for brand
management and
corporate identity.
Preparing online and print
marketing campaigns.
Monitor and report on
effectiveness of
marketing
communications.
Creating a wide range of
different marketing
materials.
-Make research on the

external environment to
know what is happening
in the market competition.
Marketing managers
gather information from
consumers on issues such
as product or service price
and quality, and
preferences for new
products or services.
131
-The one responsible for

achieving the target sales
of the company through
effective and wise budget
planning and idea
generation.
Marketing and Sales 2 - The sales and marketing - A graduate of any

Officer officer are in-charge of business related
making marketing and course or marketing
sales strategies related degree.
with the firm’s broad
- Has previous work
strategic objectives that
experience in sales or
will help make the firm
marketing
competent.
department.
- Has good strategic

- Preparing, planning and skills and
project managing the competency.
publication of all publicity
material to maximize
brand promotion.
Creating marketing
campaigns and working
with the company's
external PR agency to see
132
them executed. Creating

and developing new
innovative ways to
communicate the
company message to their
existing customers.
- Contributing to the
annual sales and
marketing plan. Planning
and project managing
marketing events and
evaluating their success.
Evaluating the
effectiveness of all
marketing activity.
Developing and
implementing an internal
marketing programme.
Supporting the marketing
manager in day to day
marketing activities. Plan,
develop and deliver
campaigns as agreed
within timescales.
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Human Resource 1 - The one responsible for - BS/MS degree in

Officer making sure that the Human Resources or
workers are well related field.
compensated with their
- Proven working
jobs and concerned with
experience as HR
the overall welfare of the
manager or other HR
employees in the -
executive
company.
- Knowledge of HR
- Upholds and heightens
systems and
the organization’s human
databases.
resource or personnel
resource by observing the - Ability to architect
performance of the strategy along with
workers and leadership skills
implementing the
- In-depth knowledge
organization’s policies,
of labor law and HR
rules.
best practices,
competence to build
and effectively
manage interpersonal
relationships at all
levels of the company
Accounting Head 1 - Establish and ascertain - Bachelor’s Degree

the financial status of the in Accounting or
organization, check the Finance required
cash flow and expenses. (Master’s degree
Make reports and counter preferred)
134
checks every transactions - 10+ years’

of the company. experience in an
accounting leadership
- Report to the higher
role or Proven
management the financial
working experience
trends and other matters
as Accounting
that concerns the financial
Manager, Accounting
aspect of the company.
Supervisor or Finance
Manager
- Strong budgeting,
financial forecasting
and financial analysis
skills required.
Book keeper 1 Helps the head accounting - Bachelor’s Degree

officer in handling the in Accounting or
financial aspects of the related field.
company. Primary tasks
- Five years of
to do is balancing
experience working
accounts, processing sales
in accounts payable
invoices, receipts and
and receivable,
payments, completing
general ledger,
VAT returns and checking
payroll and payroll
company bank statements
report.
- Extensive
experience with data
entry, record keeping
135
and computer
operation.
- Strong
understanding of
business and income
tax worksheets and
computation
Nurse 1 - Provide medical - A graduate of BS in

awareness for the Nursing
employee.
- Must be a registered
- Provide first aid nurse
medication with
employees seeking
medical attention
Secretary 1 - A secretary is in-charge - At least a high

in answering phone calls school graduate
and redirect them when
- Proven work
necessary.
experience as a
- Managing the secretary or
daily/weekly/monthly administrative
agenda and arrange new assistant.
meetings and
- High degree of
appointments, greet
multi-tasking and
visitors and direct them to
time management
the appropriate
capability
departments or
136
individuals, maintain - Excellent written

general company record and verbal
systems to uphold communication skills
accurate files and Screen
documents, book meeting
rooms, set up conference
calls and take message.
Maintenance and 1 - He or she will be - Must have

Security Head involved I the monitoring experience in
and guiding of the handling people in
maintenance personnel security and
and as well as the security maintenance
personnel in the company. personnel.
- - Must have strong

leadership skills and
strict implementing
attitude.
- Must be reliable due

to sensitivity of work.
Driver 2 - The person responsible - Valid professional

in driving the company driver’s license, has a
vehicle for the delivery proven work
purposes experience
- Load, unload, prepare, - Ability to drive

inspect and operate different kinds of
delivery vehicle vehicles like forklifts,
trucks etc.
137
- He is also responsible for - Good driving record

conveying materials, with no traffic
equipment, and staff of violations
the organization to the
- At least a high
areas where they are
school graduate
required.
- He/she is to inspect the

vehicles and perform
basic support
undertakings like
changing the oil, refueling
the car(s), changing the
batteries, and checking
and repairing some minor
issues.
Security Guard 2 - Patrol industrial and - Must have a

commercial premises to Certification on
prevent and detect signs of Protective Services.
intrusion and ensure
- At least 3 years
security of doors,
working experience
windows, and gates.
in the related field.
- Monitor and authorize
entrance and departure of
employees, visitors, and
other persons to guard
against theft and maintain
security of premises.
138
Janitor 1 - The Janitor must keep - High school

the floors clean by graduate
sweeping, mopping,
- Has a pleasing
scrubbing or vacuuming
personality
them.
- The Janitor is in charge

of gathering trash and
emptying it in the main
containers to be picked up
by trash collectors.

of servicing, cleaning and
supplies the bathrooms.

of most all of the cleaning
and keeping of the
building.
Production Head 1 - Responsible for making - Has at least 5+

the production plan, years’ experience in
production schedules, manufacturing
daily quot. operations
- Also responsible on - Bachelor’s degree

which machine to use who required ( Industrial
the person to designate on Engineering ) prefers
a specific machine, how
the production should
139
move and make product Lean Six Sigma

variation. certified
-He or she will be the one - Excellent project

who will tell how many management skills
raw materials are needed
- Proven track record
to produce the products.
of successfully
- Has to make reports on training employees in
how the production is, if productivity and
the production has any safety
lapses. Production Head is
-Working knowledge
also responsible in
of OSHA and EPA
making sure that the
regulations
production schedules and
requirements are met. - Ability to coach and
mentor employees on
a one-on-one basis as
well as a group. In
Addition, Production
Head must have
knowledge about
food handling.
Production 1 - Setting - Bachelor’s Degree

Supervisor daily/weekly/monthly in Industrial
objectives and Engineering or
communicating them to related field required
employees.
- Oversee the job of the

production lie workers
140
whether they are working - Previous experience

properly, following the in a supervisory
right sequence of process. capacity.
- Motivates his team to - at least 2 years of

work efficiently. experience in
supervisory position.
- Organization skills
and willingness to
assume
accountability for
plant practices
require
Production Worker 15 - Responsible in the - at least a high school

operating of machines for graduate
the production, or for the
- 2+ years’
manual operation
experience working
performed the task
in a warehouse.
assigned to them.
- Strong work ethic
Keep a clean and hygienic
and organizational
working area, report any
skills
safety, or work issues if
any. - Able to multi-task in
a fast-paced
warehouse
environment.
141
Able to work on foot

for extended periods
of time.
Quality Assurance 2 - Monitor operations to - Engineering course

Officer ensure that they meet graduate preferably
production standards, graduate of Industrial
inspect, test, or measure Engineering.
materials or products
- Either fresh
being produced
graduate or with
work-experience but
preferably with at
- Accept or reject finished
least 1-year
items, remove all products
experience in
and materials that fail to
Warehousing or
meet specifications and
related work.
discuss inspection results
with those responsible for With excellent oral
products and written
communication
Report inspection and test
skills.
data
142
Purchasing and 1 - The one responsible in - Must be a degree

inventory head purchasing the raw holder, male or
materials that will be female
needed in the production
- Must have good
as well as the supplies that
communication skills
will be needed in the
either verbal or
whole company. They
written.
also ensure that there is
enough buffer stocks so - Must have great
that there is sufficient convincing attitude.
materials, supply and
- Must have
finished for the operation
organizational skills
and selling.
in making inventory
management.
Warehouse officer 1 - Receive trucks and - At least a graduate

unload merchandise. of any two year or
Stack merchandise on technical course.
racks.Stock warehouse
- 2+ years’
with tools.Ensure
experience in a
machinery is serviced and
warehouse
functional.
supervisory role
- Proven knowledge
- Check in merchandise of warehouse policies
and affix labels.Match and procedures
purchase orders to sales
orders and distribute to
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sales associates for - Impeccable written

processing.Fulfill and verbal
customer orders. communication ski
- Able to work with

all levels of staff
- Move materials off racks
and package for
shipment.Fill requisitions,
work orders, or requests
for materials, tools, or
other stock items.
- Follow all safety

codes.Place merchandise
on pallets or shelves for
distribution.Record
amounts of materials or
items received.
Agricultural 1 - The one in-charge of - Must be a graduate

Engineer making different of BS in Agricultural
strategies on how to make and Bio-systems
the trees yield more fruit, Engineering
give information to the
- Has prior work
plantation workers on
experience of at least
how to take care of the
2 years but fresh
trees the right way.
144
- The one responsible in graduate are welcome

making the plan on how to to apply.
do the proper caring for
- Must have great
the trees, the type of
strategic and planning
planting mechanism.
skills.
- The one responsible for
making the natural
fertilizer from organic
materials.
Plantation Worker 77 - The one responsible in - Must have general

taking care of the trees knowledge on
like watering it, pruning farming
and applying fertilizer.
- Willing to work on
- Also responsible in the extended time
harvesting of the kerson
fruit.
Table 5.2 Table of Employee Salary
Employee Salary
Administrative
Admin 38,000/month (1)
Secretary 12,554.75/month (1)

145
Accounting 24,811/month (1)
HR 18,640/ month (1)
Marketing sales 23,541.67/month (1)
Bookkeeper 14,896/month (1)
Marketing agent 16,422.58/month (1)
Sales agent 16,422.58/month (1)
Nurse 14,226/month (1)
Maintenance Head 15,146/month (1)
Driver 12,435/month (2)
Security guard 8,952/month (2)
Janitor 8,952/month (1)
Production
Production Head 27,019/month (1)
Production Supervisor 20,799/month (1)
Production workers 8,952/months (16)
Purchasing & inventory head 25,000/month (1)
Warehouse Personnel 12,875/month (1)
Warehouse Clerk 11,436/month (1)
Quality assurance worker 8,952/month (1)
Plantation
Agricultural engineer 16,650/month (1)
QA Raw Mats 8,952/month (2)

146
Plantation Workers 9,420/month (77)
Note: Plantation Workers (farmers) will work 30 day a month, Php 314.00 wage per day
Table 5.3 Summary of Current Daily Minimum Wage Rates Non-Agriculture, Agriculture (As of
February 2018)
(Source: (Virtual Law Library, 2018)
Policy Statement
The company shall provide schedule that will be the basis of work of the people in the
production as well as the administrative section. This schedule shall be closely monitored by the
employees in order for the business to be productive at all times and avoid setbacks. Attendance
will be recorded to be used as basis for the salary and wages computation.
Work Base
147
The employee work base is the place where the employee devote his or her time doing the
assigned task to them. This is their domain for harboring all the jobs and responsibilities delegated
to them for the operation of the company.
Working Hours
The company will implement a six day working schedule with an eight hour shift per day.
The company will operate from 8:00 AM – 5:00 PM from Monday – Saturday as Sunday will
serve as the rest day of the employees unless specified there would be workday on Sunday or rest
day by the supervisor and the management.
Managers and supervisors can ponder from time to time, they can deviate the workers
schedule from the normal schedule that they normally come up with due to unforeseen
circumstances that may arise when the company or the supervisor makes the schedule for the
workers.\
5.6 Employee Benefits
5.6.1 List of Leaves
List of Leaves as mandated by Law:
The following are benefits of the employees and are still under the Philippine government
law.
Emergency Leave- An employee is allowed for a 5-day emergency leave if he/she can
provide documentations and needed proofs to obtain this benefit. Sick Leave- An employee is
allowed for a 10-day sick leave if he/she can provide a medical certificate as proof.
148
Vacation leave- An employee is allowed for a 10-day vacation leave. He/she should inform
the management 1 week before the vacation date.
5-Day Additional Leave- Mandated by the law, an employee will obtain a 5-day additional
leave prior to the other leaves given for every year of service.
Note: These leaves entitled to the employees are convertible into cash if not used.
Paternity/Maternity Leave- an employee is entitled with this leave given that she is
pregnant or a man’s legitimate spouse will be giving birth. For maternity leave, 60-day leave will
be given to a woman who normally delivers a child or miscouraged. However, for those who
deliver a child in Caesarian section, 78 days are given. Also, maternity benefit which will come
from Social Security System (SSS) should be given to the employee only if she complied with the
documents and requirements needed.
As for paternity leave, 7 days will be given to a married man. These days will be paid by
the company. He should notify the management to the date when he will use this leave. But to
claim this, necessary documents should be provided.
Bereavement Leave - This leave is given to an employee and will be given 7-day
bereavement leave for the death of his immediate relative. This leave is still paid to the employee.
5.6.2 Holidays
Regular holidays will be paid with the employee’s daily rate if unworked. In case the
employee worked during the day of the regular holiday the daily rate of the worker will be doubled.
149
50% of the daily rate of the worker will be added to them if they worked during the special
holidays. The following are regular holidays under Executive Order 203 and amended by RA 9177.
Table 5.4 List of Holidays
Regular Holiday Date
New Year’s Day January 1
Maundy Thursday Movable Date
Good Friday Movable Date
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
National Heroes’ Day Last Sunday of August
Bonifacio Day November 30
Eid’lFitr Movable Date
Christmas Day December 25
Rizal Day December 30
First Republic of the Philippines. January 23
Blas Ople Day February 3
Bulacan Founding Anniversary August 15
Chinese New year Movable Date
5.6.3 13th Month Pay
Under Presidential Decree No. 851, employers from the private sector in the Philippines
are required to pay their rank-and-file employees a Thirteenth 13th Month Pay not later than
150
December 24 every year. The 13th month pay is equivalent to one twelfth (1/12) of an employee’s
basic annual salary. All rank-and-file employees in the private sector who have worked for at least
one (1) month during the calendar year are entitled to receive 13th month pay regardless of their
position, designation or employment status.
5.6.4 Other Benefits
 Back Pay
Back pay is the money you get when you resigned in a company after providing service.
For Invictus Magni Company it will take 30 days after the day an employee resigned to receive
the back pay. The back pay is equivalent to the 1-month salary of the worker. The worker should
be a regular employee of the company and has rendered at least 5 years of service in the
organization.
 Mandatory Benefits
There are mandatory benefits that a worker should have under the law:
 SSS (Social Security System)
11 % of gross pay, 3.63% for employee share and 7.37% employer share
 PhilHealth
2.75% of gross pay, 1.375% for employee share and 1.375% for employer share
 Pag-Ibig (HDMF).
Php 100 for employee share and Php 100 for employer share
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Table 5.5 Mandatory Benefit Computation for Year 1
No. of
Employees Gross Pay (excluding Total
Employee
mandatory benefits Employee Share in Mandatory Benefits Employer Share in Mandatory Benefits
Monthly Annual SSS PhilHealth Pag-Ibig TOTAL SSS PhilHealth Pag-Ibig TOTAL
Related to Operation
Production Workers 8,952.00 107,424.00 15.00 1,611,360.00 324.96 123.09 100.00 8,220.71 659.76 123.09 100.00 13,242.79
Material Handler 8,952.00 107,424.00 3.00 322,272.00 324.96 123.09 100.00 1,644.14 659.76 123.09 100.00 2,648.56
QC for Raw Material 8,952.00 107,424.00 3.00 322,272.00 324.96 123.09 100.00 1,644.14 659.76 123.09 100.00 2,648.56
Maintenance 8,952.00 107,424.00 2.00 214,848.00 324.96 123.09 100.00 1,096.10 659.76 123.09 100.00 1,765.70
Farmers 9,420.00 113,040.00 77.00 8,704,080.00 341.95 129.53 100.00 44,003.27 694.25 129.53 100.00 71,130.98
Janitor 8,952.00 107,424.00 1.00 107,424.00 324.96 123.09 100.00 548.05 659.76 123.09 100.00 882.85
Security Guard 8,952.00 107,424.00 2.00 214,848.00 324.96 123.09 100.00 1,096.10 659.76 123.09 100.00 1,765.70
Supervisor 20,799.00 249,588.00 1.00 249,588.00 755.00 285.99 100.00 1,140.99 1,532.89 285.99 100.00 1,918.87
Driver 12,345.00 148,140.00 2.00 296,280.00 448.12 169.74 100.00 1,435.73 909.83 169.74 100.00 2,359.14
Warehouse Personnel 12,875.00 154,500.00 1.00 154,500.00 467.36 177.03 100.00 744.39 948.89 177.03 100.00 1,225.92
TOTAL 109,151.00 1,309,812.00 12,197,472.00 3,962.18 1,500.83 1,000.00 61,573.62 8,044.43 1,500.83 1,000.00 99,589.08
Marketing & Selling

Marketing Sales 23,541.67 282,500.04 1.00 282,500.04 854.56 323.70 100.00 1,278.26 1,735.02 323.70 100.00 2,158.72
Marketing Agent 16,422.58 197,070.96 1.00 197,070.96 596.14 225.81 100.00 921.95 1,210.34 225.81 100.00 1,536.15
Sales agent 16,422.58 197,070.96 1.00 197,070.96 596.14 225.81 100.00 921.95 1,210.34 225.81 100.00 1,536.15
TOTAL 56,386.83 676,641.96 676,641.96 2,046.84 775.32 300.00 3,122.16 4,155.71 775.32 300.00 112,089.74
General & Admin

Admin 38,000.00 456,000.00 1.00 456,000.00 1,379.40 522.50 100.00 2,001.90 2,800.60 522.50 100.00 3,423.10
Secretary 12,554.75 150,657.00 1.00 150,657.00 455.74 172.63 100.00 728.37 925.29 172.63 100.00 1,197.91
Accounting 24,811.00 297,732.00 1.00 297,732.00 900.64 341.15 100.00 1,341.79 1,828.57 341.15 100.00 2,269.72
HR 18,640.00 223,680.00 1.00 223,680.00 676.63 256.30 100.00 1,032.93 1,373.77 256.30 100.00 1,730.07
Book keeper 14,896.00 178,752.00 1.00 178,752.00 540.72 204.82 100.00 845.54 1,097.84 204.82 100.00 1,402.66
Nurse 14,226.00 170,712.00 1.00 170,712.00 516.40 195.61 100.00 812.01 1,048.46 195.61 100.00 1,344.06
Maintenance Head 15,146.00 181,752.00 1.00 181,752.00 549.80 208.26 100.00 858.06 1,116.26 208.26 100.00 1,424.52
Purchasing & inventory head 25,000.00 300,000.00 1.00 300,000.00 907.50 343.75 100.00 1,351.25 1,842.50 343.75 100.00 2,286.25
Production Head 27,019.00 324,228.00 1.00 324,228.00 980.79 371.51 100.00 1,452.30 1,991.30 371.51 100.00 2,462.81
Agricultural Engineer 16,650.00 199,800.00 1.00 199,800.00 604.40 228.94 100.00 933.33 1,227.11 228.94 100.00 1,556.04
TOTAL 206,942.75 2,483,313.00 2,483,313.00 7,512.02 2,845.46 1,000.00 11,357.48 15,251.68 2,845.46 1,000.00 19,097.14
Grand Total 372,480.58 4,469,766.96 15,357,426.96 13,521.05 5,121.61 2,300.00 76,053.27 27,451.82 5,121.61 2,300.00 230,775.96
152
Other than mandatory benefits, the employer will be giving food and transportation
allowances, Php 700 per month and Php 500per month respectively. In addition, service incentive
leave for 5 days will be given. (See table below)

153
Table 5.6 Employee benefit Computation for Year 1
Service Incentive Leave Transportation Allowance Food Allowance Total Employee benefits
Employees No. of Employee Paid Sick Allowance Allowance per
Daily Rate Amount Annual Total Total
Leave Days per month Annual month Annual
Production Workers 15.00 5 373.00 1,865.00 27,975.00 500.00 7,500.00 90,000.00 700.00 10,500.00 126,000.00 243,975.00
Material Handler 3.00 5 373.00 1,865.00 5,595.00 500.00 1,500.00 18,000.00 700.00 2,100.00 25,200.00 48,795.00
QC for Raw Material 3.00 5 373.00 1,865.00 5,595.00 500.00 1,500.00 18,000.00 700.00 2,100.00 25,200.00 48,795.00
Maintenance 2.00 5 373.00 1,865.00 3,730.00 500.00 1,000.00 12,000.00 700.00 1,400.00 16,800.00 32,530.00
Farmers 77.00 5 392.50 1,962.50 151,112.50 500.00 38,500.00 462,000.00 700.00 53,900.00 646,800.00 1,259,912.50
Janitor 1.00 5 373.00 1,865.00 1,865.00 500.00 500.00 6,000.00 700.00 700.00 8,400.00 16,265.00
Security Guard 2.00 5 373.00 1,865.00 3,730.00 500.00 1,000.00 12,000.00 700.00 1,400.00 16,800.00 32,530.00
Supervisor 1.00 5 866.63 4,333.13 4,333.13 500.00 500.00 6,000.00 700.00 700.00 8,400.00 18,733.13
Driver 2.00 5 514.38 2,571.88 5,143.75 500.00 1,000.00 12,000.00 700.00 1,400.00 16,800.00 33,943.75
Warehouse Personnel 1.00 5 536.46 2,682.29 2,682.29 500.00 500.00 6,000.00 700.00 700.00 8,400.00 17,082.29
TOTAL 50 4,547.96 22,739.79 211,761.67 5,000.00 53,500.00 642,000.00 7,000.00 74,900.00 898,800.00 1,752,561.67
Marketing & Selling

Marketing Sales 1.00 5 980.90 4,904.51 4,904.51 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 22,904.51
Marketing Agent 1.00 5 684.27 3,421.37 3,421.37 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 21,421.37
Sales agent 1.00 5 684.27 3,421.37 3,421.37 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 21,421.37
TOTAL 15 2,349.45 11,747.26 11,747.26 1,500.00 1,500.00 18,000.00 3,000.00 3,000.00 36,000.00 65,747.26
General & Admin

Admin 1.00 5 1,583.33 7,916.67 7,916.67 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 25,916.67
Secretary 1.00 5 523.11 2,615.57 2,615.57 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 20,615.57
Accounting 1.00 5 1,033.79 5,168.96 5,168.96 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 23,168.96
HR 1.00 5 776.67 3,883.33 3,883.33 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 21,883.33
Book keeper 1.00 5 620.67 3,103.33 3,103.33 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 21,103.33
Nurse 1.00 5 592.75 2,963.75 2,963.75 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 20,963.75
Maintenance Head 1.00 5 631.08 3,155.42 3,155.42 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 21,155.42
Purchasing & inventory head 1.00 5 1,041.67 5,208.33 5,208.33 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 23,208.33
Production Head 1.00 5 1,125.79 5,628.96 5,628.96 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 23,628.96
Agricultural Engineer 1.00 5 693.75 3,468.75 3,468.75 500.00 500.00 6,000.00 1,000.00 1,000.00 12,000.00 21,468.75
TOTAL 50 8,622.61 43,113.07 43,113.07 5,000.00 5,000.00 60,000.00 10,000.00 10,000.00 120,000.00 223,113.07
Grand Total 15,520.02 77,600.12 266,622.00 11,500.00 60,000.00 720,000.00 20,000.00 87,900.00 1,054,800.00 2,041,422.00
154
 Basic Legal Requirements
The following are the basic requirements to start commencing your business in the
Philippines:
1. SEC registration – for registering as a partnership or corporation
2. DTI registration – for registering your business trade name (BTR)
3. Mayor’s business permit – for getting the license to operate in the city or municipality and
payment of your local business taxes
4. 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.)
5. FDA registration – for getting the Certification of Product Registration used for the authorization
safety food processing, product packaging and distribution
6. IPO registration (Patent) – for getting an exclusive right granted for a product which is new,
inventive and useful. This exclusive right gives the inventor the right to exclude others from
making, using, or selling the product of his invention during the life of the patent.
155
VI. Financial Study
To prove the feasibility of this project, financial aspects were quantified and evaluated.
This study projected the total project cost, initial capital requirement, financial statements,
financial analysis, breakeven analysis, capital recovery and internal rate of return, and net present
value. These aspects were further explained and interpreted to supplement factual and precise
information of the study.
6.1 Objective of the Study
The primary objective of this study is to measure financial soundness of the company.
Furthermore, this study aims to achieve the following:
 To utilize financial statements such as income statement, cash low, balance sheet that will
convey financial activities and conditions in the study.
 To analyze and evaluate financial condition and performance through different ratios such
as profitability ratio, liquidity ratio, solvency ratio, and activity ratio.
 To determine the profitability of the business using breakeven analysis, capital recovery
and internal rate of return, and net present value.
6.2 Total Project Cost
To start with, summary of expenditures was listed that projects the initial capital or total
project cost. The table below shows the detailed expenses of the company.
156
Table 6.1 Total Project Cost
TOTAL PROJECT COST (PhP)
Fixed Assets
Land (for plantation and production) 2,324,580.00
Building 3,227,520.00
Company Vehicle 435,000.00
Plantation Equipment 1,880,575.00
Machineries 2,079,530.32
Office Furniture, Fixture, Equipment 311,670.71
Production Equipment 204,051.45
Tree Installation 14,137,060.00
Total Fixed Asset Cost 24,599,987.48
Supplies
Cleaning Supplies 5,354.50
Medical Supplies 6,756.00
Office Supplies 48,075.00
Production and Plantation Supplies 172,484.24
Total Supplies Cost 232,669.74
Labor
Direct Labor 816,411.75
Indirect Labor 5,362,905.60

157
Total Labor cost 6,179,317.35
Utilities
Electricity and Water 1,844,434.63
Communication 36,000.00
Fuel 48,000.00
Total Utilities Cost 1,928,434.63
Selling and Administrative
Selling and Administrative Labor 1,595,573.18
Transportation 40,128.00
Promotion 120,000.00
Maintenance and Repairs 30,000.00
Land Tax 348,690.00
Miscellaneous (Permits and Legal Papers) 21,150.00
Total Selling and Administrative Cost 2,155,541.18
TOTAL PROJECT COST 35,095,950.38
6.3 Initial Capital Requirement
Initial capital requirement was based on the computation of total project cost presented;
capital for fixed assets and operating cost were identified. Additional capital was added that would
further be used to insure all unexpected expenses and will serve as contingency fund.
158
Table 6.2 Initial Capital Requirement (PhP)
Capital For Assets
Fixed Assets 24,700,000.00
Capital for Operations
Supplies 300,000.00
Labor Salary 6,200,000.00
Utilities 2,000,000.00
Selling and Administrative Expenses 2,300,000.00
Total Working capital 10,800,000.00
TOTAL CAPITAL REQUIREMENT 35,500,000.00
6.4 Source of Financing
Based from the capitalization, the following are the sources of financing to acquire the total
initial capital requirement of Php 35,500,000.00. Total equal share per proponent is Php
8,875,000.00.
Table 6.3 Contribution per Partner (PhP)
TOTAL PROJECT COST 35,500,000.00
Divided by Number of Partners 4
TOTAL REQUIRED CONTRIBUTION 8,875,000.00

159
6.5 Financial Statements
All company is required to provide financial statements to show the financial condition and
health of the company. Financial statements are a collection of reports about an organization's
financial results, financial condition and activities. Also there are meant to present the financial
information of the entity in question as clearly and concisely as possible. Financial statements
provided include income statements, balance sheets, and cash flows. Moreover, realistic
assumptions were also prepared.
6.5.1 Assumptions
Assumptions in order to create good financial statements are as follows:
 The land area was 7.75 hectares equivalent to 77,486 square meter, both for plantation
and production.
 Building cost was estimated to be Php 500.00 per square meter.
 Plantation of Invictus Magni is 1 year ahead in the production. Cost incurred for the
plantation for the year 1 was added to project cost.
 Depreciation on fixed assets is computed using straight-line method
 Promotion and advertisement on initial year of operations is estimated to be Php 20,000.00
monthly and assumes to increase by 5% annually
 Direct material, WIP and finished goods inventory was assumed to be 5%

160
 Price for Kilowatt-hr. electric consumption for the next 5 years is assume to be constant
at Php 9.39 per kilowatt-hr.
 Fuel expense was estimated to be Php 1,000.00 per delivery
 Delivery is assumed to be once a week
 Budget for supplies (Except plantation supplies), maintenance and communication
expense for 5 years is constant
 Toll fee is assumed to be Php 168.00 for the next 5 years and 4 toll gates are assumed per
delivery
 Minimum wages are assumed to be constant for the next 5-years
 Miscellaneous expense is estimated to be Php 50,000 annually and is assumed to be
constant for 5 years
 Office Utility expense is assumed to increase by 5% annually
 Property tax (land tax) on the first year was based on the tax declaration and is assumed
to increase by 5%
 Other investing activity is assumed to be Php 5,000,000.00 and is invested during the first
year
 Income Tax is payable quarterly every 60th day after the end of company's fiscal year,
thus, making the last quarter taxes still due and outstanding
 Land tax is paid-in cash
 Accounts receivables are assumed to be 75% of the year's last month sales
 Transportation expense (toll fee and fuel) is assumed to increase by 5% annually
 Raw Material inventory is 5% of annual direct material cost

161
 Work-in process inventory is 3% of the total manufacturing cost
 Finished Goods inventory is 5% of annual output
6.5.2 Notes
Table 6.4 Accounts Receivable
Note 1 - Accounts Receivable (PhP)
Annual sales 33,023,520 46,622,160 63,525,600 86,243,040 117,393,840
Monthly 2,751,960 3,885,180 5,293,800 7,186,920 9,782,820
Account Receivables 2,063,970 2,913,885 3,970,350 5,390,190 7,337,115
(75%)
Table 6.5 Inventories
Note 2 – Inventories (PhP)
Raw Materials Inventory 196,364 267,055 363,196 493,946 671,767
WIP Inventory 791,876 916,045 1,080,538 1,332,787 1,748,986
Finished Goods Inventory 1,280,201 1,584,543 1,871,900 2,302,295 3,009,281

162
Total Inventory 2,268,442 2,767,645 3,315,635 4,129,030 5,430,035
Table 6.6 Supplies Inventory
Note 3 - Supplies Inventory (PhP)
Plantation Supplies 42,485 87,096 133,937 183,119 234,761
Office Supplies 9,093 18,640 28,665 39,191 50,244
Cleaning Supplies 1,070 2,195 3,376 4,615 5,917
Medical Supplies 1,351 2,769 4,259 5,823 7,466
Total 54,001 110,702 170,238 232,751 298,390
80% of the supplies are assumed to be consumed yearly, and 5% increase in terms of cost
of supplies is expected every year.
Table 6.7 Prepaid Insurance
Note 4 - Prepaid Insurance (PhP)

163
Beginning balance - 100,000 50,000 - 100,000
Prepayment during the year 150,000 - 150,000
Expensed during the year 50,000 50,000 50,000 50,000 50,000
Ending balance 100,000 50,000 - 100,000 50,000
Current 50,000 50,000 - 50,000 50,000
Non-current 50,000 - - 50,000 -
checking - - - - -
The term of prepaid is assumed to be 3 years. Initial amount of prepaid insurance is
amortized equally during its term, which is assumed 3 years. Prepayment is made when previous
prepaid balance is fully expired. Current portion of prepaid insurance pertains to the amounts,
which will be expensed within a span of 1 year while non-current portion are those that are
expected to be expensed after a year or more.
Table 6.8 Plant Property and Equipment Depreciation and Appreciation Charge
Note 5 - Property Plant and Equipment
Land 2,324,580 2,440,809 2,562,849 2,824,331 3,327,218
Office, Furniture, Fixture 311,670 94,732 94,732 94,732 94,732
Equipment
Plantation Equipment 1,880,575 961,715 961,715 961,715 961,715
Production Equipment 204,051 204,051 204,051 204,051 204,051
Building 3,227,520 3,227,520 3,227,520 3,227,520 3,227,520

164
Delivery truck 435,000 435,000 435,000 435,000 435,000
Machineries 2,079,530 2,220,800 2,362,070 2,362,070 2,644,610
Total Property Plant and 10,462,927 10,720,426 10,983,736 11,245,219 12,030,646
Equipment
Accumulated depreciation
Office Equipment 17,051 34,103 51,155 68,207 85,259
Plantation Equipment 125,254 250,508 375,763 501,017 626,271
Production Equipment 18,895 37,790 56,685 75,581 94,476
Furniture and Fixtures 36,361 72,723 109,085 145,447 181,809
Building 75,308 150,617 225,926 301,235 376,544
Delivery truck 46,607 93,214 139,821 186,428 233,035
Machineries 97,044 200,682 310,912 421,141 544,557
Land Improvement 36,754 73,508 110,263 147,017 183,772
Total Accumulated 453,278 913,149 1,379,612 1,846,076 2,325,725
Depreciation
Net Carrying Amount 10,009,649 9,807,277 9,604,123 9,399,142 9,704,920
Estimated salvage values of each PPEs is assumed to be 10% of its original cost except for
Building, delivery trucks, machineries and land improvement. Depreciation is computed using
straight-line method except for Land which is measured at fair value. Initial purchase cost of Land
165
is assumed to be Php 2,324,580 which appreciates by 5% each year. Increase in its fair value is
recorded as gain in profit or loss as follows:
Table 6.9 Investment Property
Note 6 - Investment Property (PhP)
Fair value 5,250,000 5,512,500 5,788,125 6,077,531 6,381,407
Gain on change of fair value 250,000 262,500 275,625 289,406 303,876
of Investment Property
Investment property pertains to Land properties held primarily for capital appreciation
aside from that being used and will be used for production/plantation. Initial cost is assumed to be
PhP 5,000,000 which appreciates by 5% of its fair value each year.
Table 6.10 Biological Assets
Note 7 - Biological Assets (PhP)
Units, beginning
- 6,748.00 9,171 12,498 16,965
Additions
6,748 2,423.00 3,327 4,467 6,130

166
Units, ending
6,748 9,171.00 12,498 16,965 23,095
Average unit price
2,095 2,199 2,309 2,425 2,546
Total
14,137,060 20,173,907 28,867,099 41,143,931 58,811,084
Gain on change of
fair value of - 706,853 1,008,695 1,443,354 2,057,196
Biological assets
Biological assets primarily include trees used for production of sweetener. Annually,
biological asset increases as how the production demands increases.in addition, the proponents
will be replacing the biological assets every 5 years. Average unit price is assumed to be the
average fair value less cost of each tree including newly planted and full-grown ones. This is
assumed to increase by 5% each year which is recorded as gain in profit or loss.
Table 6.11 Projected Sales
Note 8 - Projected Sales
Beginning units
- 20,448 27,792 37,872 51,408

167
Annual Output 408,960
555,840 757,440 1,028,160 1,399,680
Inventory, end
20,448 27,792 37,872 51,408 69,984
Units sold
388,512 548,496 747,360 1,014,624 1,381,104
Selling Price
85 85 85 85 85
Total Revenue
33,023,520 46,622,160 63,525,600 86,243,040 117,393,840
Units ending
20,448 27,792 37,872 51,408 69,984
Sales are projected based on the expected market share for each year. It is assumed to
increase by 30% each year. In addition, ending inventory is assumed to be 5% of the annual output
(Finished good inventory).
Table 6.12 Cost of Goods Sold
Note 9 - Cost of Goods sold
Direct Materials, 0 196,364 16,328 16,328 16,328
Beg
168
Purchases 1,278 1,738 2,363 3,214 4,372
Agricultural Produce 3,926,016 5,339,381 7,261,559 9,875,720 13,430,979
Inventory
Direct Materials, 196,364 267,055 363,196 493,946 671,767
End
Total Raw Materials 3,730,929 5,270,428 6,917,055 9,401,316 12,779,912
Direct Labor 1,632,823 1,850,533 2,285,952 2,503,662 3,156,792
Manufacturing 2,103,214 23,413,880 26,814,951 32,521,279 42,362,831
Overhead
Total manufacturing 26,395,898 30,534,842 36,017,959 44,426,258 58,299,536
Cost
Work In Process, 0 791,876 916,045 1,080,538 1,332,787
Beg
Total Goods Put in 26,395,898 31,326,719 36,934,004 45,506,797 59,632,324
Process
Work in Process, 791,876 916,045 1,080,538 1,332,787 1,748,986
End
Total Cost of Goods 25,604,021 30,410,674 35,853,465 44,174,009 57,883,338
Manufactured
Finished Goods, Beg 0 1,280,201 1,584,543 1,871,900 2,302,295
Total Goods 25,604,021 31,690,875 37,438,009 46,045,909 60,185,633
Available for Sale

169
Finished Goods, End 1,280,201 1,584,543 1,871,900 2,302,295 3,009,281
Cost of Goods sold 24,323,820 30,106,331 35,566,109 43,743,614 57,176,352
Table 6.13 Operating Expenses
Note 10 - Operating expenses (PhP)
Marketing and Selling Expenses Year 1 Year 2 Year 3 Year 4 Year 5
Salaries and Wages 683,911 683,911 683,911 683,911 683,911
Employee Benefits 65,747 65,747 65,747 65747 65,747
13th Month Pay 56,992 56,992 56,992 56,992 56,992
Transportation Expense 80,256 88,281 97,109 106,820 117,502
Advertising Expense 240,000 264,000 290,400 319,440 351,384
TOTAL 1,126,907 1,158,933 1,194,161 1,232,912 1,275,538
Table 6.14 Utilities Expense
Note 11 - Utilities Expense (PhP)
Production
Electricity 3,461,313 4,499,707 5,849,619 7,604,505 9,885,856
Total 3,461,313 4,499,707 5,849,619 7,604,505 9,885,856
Plantation
170
Electricity 169,020 185,922 204,514 224,965 247,462
Total 169,020 185,922 204,514 224,965 247,462
Office
Electricity 22,536 24,789 27,268 29,995 32,994
Telecommunication 36,000 36,000 36,000 36,000 36,000
Total 58,536 60,789 63,268 65,995 68,994
Total Utilities Expense 3,688,869 4,746,418 6,117,402 7,895,466 10,202,313
Annual Electricity Consumption in production increases by 30%. Electricity for office and
plantation is assumed to increase by 10%, electricity for plantation was used for pumping station
Table 6.15 Machine Electricity Consumption
Note 11.a
Machine Power Supply Consumption per Day Cost (In
(kW) (kWh) peso)
Fruit Pulp Machine 2.2 17.6 165.26
Juice Heating Machine 2.2 17.6 165.26
Filtering Machine 2.5 20 187.8
Multiple Effect Evaporator 132 1056 9,915.84

171
Vacuum Pan Evaporator 11.19 89.52 840.59
Granulator 5.5 44 413.16
Sachet Filling Machine 2.2 17.6 165.26
Daily Electric Consumption 11,853.18
Monthly Electric 284,476.44
Consumption
Annual Electric 3,461,313.25
Consumption
Table 6.16 Repair and Maintenance Expenses
Note 12 - Other Expenses (PhP)
Repair and Maintenance 60,000 66,000 72,600 79,860 87,846
Table 6.17 Salaries and Wages Payable
Note 13 Salaries and Wages Payable (PhP)
Salaries Payable 639,893 648,845 666,749 727,511 900,377
Withholding Tax - Compensation 635 635 635 635 635
SSS Payable 3,414 3,414 3,414 3,414 3,414
PhilHealth Payable 854 854 854 854 854

172
PAG-Ibig Payable 383 383 383 383 383
13th Month Pay 1,533,105 1,551,247 1,601,707 1,724,840 2,060,976
Total 2,178,284 2,205,378 2,273,742 2,457,637 2,966,639
Salary is assumed to be paid every fifteenth day and thirtieth day of the month. Thus, 50%
of employees' salaries as at December is still outstanding by the end of the year. Withholding Tax
- Compensation, and monthly SSS and PhilHealth contributions are payable at the 10th day of the
month following the taxable month and monthly PAG-Ibig contributions are payable at the 25th
day of the month following the taxable month. Thus, the December's contribution for these is still
payable at year-end. Also, total 13th month pay is assumed to be unpaid as at year-end.
Table 6.18 Direct Materials
Note 9.1 - Direct Materials (PhP)
Purchases (Milk of Lime) 1,278 1,738 2,363 3,214 4,372
Agricultural Produce Inventory 3,926,016 5,339,381 7,261,559 9,875,720 13,430,979
Total 3,927,294 5,341,119 7,263,922 9,878,935 13,435,351
Table 6.19 Direct and Indirect Labor Cost
Note 9.2 - Direct and Indirect Labor Cost (PhP)

173
Direct Labor 1,632,824 1,850,533 2,285,953 2,503,663 3,156,792
Overtime - - - - -
Total 1,632,824 1,850,533 2,285,953 2,503,663 3,156,792
Table 6.20 Packaging Cost
Note 9.3a Packaging
Single Small box Cardboard Total Cost
Packaging Box (PhP)
Price per Unit (php) 0.1 3 30
Needed annually(year 1) (pcs) 20,448,000 408,960 8,179 3,517,050
Needed annually(year 4) (pcs) 51,408,000 1,028,160 20,563 8,842,176
Needed annually(year 5) (pcs) 69,984,000 1,399,680 27,993 12,037,248
Table 6.21 Manufacturing Overhead Cost
Note 9.3 Manufacturing Overhead (PhP)
Packaging 3,517,050 4,780,224 6,513,984 8,842,176 12,037,248
Indirect Labor 10,725,811 10,725,811 10,895,906 12,155,793 15,536,292
Employee Benefit 1,752,562 1,785,092 1,850,152 2,062,669 2,667,497

174
13th month pay 1,029,886 1,048,029 1,098,488 1,221,621 1,557,757
Depreciation* 316,503 323,096 329,688 329,688 342,874
Electricity 3,630,333 4,685,629 6,054,134 7,829,471 10,133,319
Repair and 60,000 66,000 72,600 79,860 87,846
Maintenance
Total Manufacturing 21,032,146 23,413,881 26,814,951 32,521,279 42,362,832
Overhead
Units produced 408,960 555,840 757,440 1,028,160 1,399,680
Manufacturing 51 42 35 32 30
Overhead Per Unit
Units sold 388,512 548,496 747,360 1,014,624 1,381,104
Total Manufacturing 19,980,538 23,104,526 26,458,098 32,093,128 41,800,609
Overhead for units sold
Table 6.22 Selling & Admin Wages
Note 10.1- Selling & Admin Wages (PhP)
Selling & Marketing
Marketing Sales 285,395 285,395 285,395 285,395 285,395
Marketing agent 199,529 199,529 199,529 199,529 199,529
Sales agent 198,987 198,987 198,987 198,987 198,987
Total 683,912 683,912 683,912 683,912 683,912

175
General & Admin
Admin 457,758 457,758 457,758 457,758 457,758
Secretary 152,583 152,583 152,583 152,583 152,583
Accounting 300,548 300,548 300,548 300,548 300,548
HR 226,443 226,443 226,443 226,443 226,443
Book keeper 181,000 181,000 181,000 181,000 181,000
Nurse 172,868 172,868 172,868 172,868 172,868
Maintenance Head 184,035 184,035 184,035 184,035 184,035
Purchasing & inventory head 302,804 302,804 302,804 302,804 302,804
Production Head 326,906 326,906 326,906 326,906 326,906
Agricultural Engineer 202,289 202,289 202,289 202,289 202,289
Total 2,507,235 2,507,235 2,507,235 2,507,235 2,507,235
Table 6.23 Transportation Expense
Note 10.4 - Transportation Expense (PhP)
Transportation Cost
Toll Fee 48,000 52,800 58,080 63,888 70,277
Fuel 32,256 35,482 39,030 42,933 47,226
Total 80,256 88,282 97,110 106,821 117,503
Transportation expense was assumed to increase by 10 % annually.

176
Table 6.24 Employee Benefit Expense
Note 10.2 - Employee Benefit (PhP)
Production Workers 243,975 276,505 341,565 374,095 471,685
Material Handler 48,795 48,795 48,795 48,795 48,795
QC for Raw Material 48,795 48,795 48,795 48,795 48,795
Maintenance 32,530 32,530 32,530 32,530 32,530
Farmers 1,259,913 1,259,913 1,259,913 1,439,900 1,947,138
Janitor 16,265 16,265 16,265 16,265 16,265
Security Guard 32,530 32,530 32,530 32,530 32,530
Supervisor 18,733 18,733 18,733 18,733 18,733
Driver 33,944 33,944 33,944 33,944 33,944
Warehouse Personnel 17,082 17,082 17,082 17,082 17,082
TOTAL 1,752,562 1,785,092 1,850,152 2,062,669 2,667,497
Marketing & Selling
Marketing Sales 22,905 22,905 22,905 22,905 22,905
Marketing Agent 21,421 21,421 21,421 21,421 21,421
Sales agent 21,421 21,421 21,421 21,421 21,421
TOTAL 65,747 65,747 65,747 65,747 65,747
General & Admin
Admin 25,917 25,917 25,917 25,917 25,917

177
Secretary 20,616 20,616 20,616 20,616 20,616
Accounting 23,169 23,169 23,169 23,169 23,169
HR 21,883 21,883 21,883 21,883 21,883
Book keeper 21,103 21,103 21,103 21,103 21,103
Nurse 20,964 20,964 20,964 20,964 20,964
Production Head 23,629 23,629 23,629 23,629 23,629
TOTAL 223,113 223,113 223,113 223,113 223,113
Grand Total 2,041,422 2,073,952 2,139,012 2,351,529 2,956,357
Employee benefit includes service incentives leave, food and transportation allowance.
Food allowance is Php 700.00 monthly per employee and transportation allowance is Php 500.00
monthly per employee. See mandatory contribution expense details in management study.
Table 6.25 13th Month Selling and Admin
Note 10.3 - 13th month Selling and Admin (PhP)
Direct Labor
Production 136,069 154,211 190,496 208,639 263,066
Total 136,069 154,211 190,496 208,639 263,066

178
Indirect Labor
Material Handler 27,214 27,214 27,214 27,214 27,214
QC for Raw Material 27,214 27,214 27,214 27,214 27,214
Maintenance 18,142 18,142 27,214 27,214 18,142
Farmers 734,935 734,935 18,142 18,142 1135,808
Janitor 9,071 9,071 734,935 839,925 9,071
Security Guard 18,142 18,142 9,071 9,071 18,142
Supervisor 21,054 21,054 18,142 18,142 21,054
Driver 25,006 25,006 21,054 21,054 25,006
Warehouse Personnel 13,039 13,039 25,006 25,006 13,039
Total 893,818 893,818 907,992 1,012,983 1294,691
Selling & Marketing
Marketing Sales 23,783 23,783 23,783 23,783 23,783
Marketing agent 16,627 16,627 16,627 16,627 16,627
Sales agent 16,582 16,582 16,582 16,582 16,582
Total 56,993 56,993 56,993 56,993 56,993
General & Admin
Admin 25,917 25,917 25,917 25,917 25,917
Secretary 20,616 20,616 20,616 20,616 20,616
Accounting 23,169 23,169 23,169 23,169 23,169
HR 21,883 21,883 21,883 21,883 21,883
Book keeper 21,103 21,103 21,103 21,103 21,103

179
Nurse 20,964 20,964 20,964 20,964 20,964
23,208 23,208 23,208 23,208 23,208
Production Head 21,469 21,469 21,469 21,469 21,469
Total 446,226 446,226 446,226 446,226 446,226
Total 13th Month 1,533,105 1,551,247 1,601,707 1,724,840 2,060,976

180
6.4.3 Projected Income Statement
Table 6.26 Projected Income Statement
Invictus Magni Partnership

Statement of Comprehensive Income
For the Year ended
Note December 31, December 31, December 31, December 31, December 31,
2019 2020 2021 2022 2022
SALES 8
33,023,520 46,622,160 63,525,600 86,243,040 117,393,840
COST OF GOODS SOLD 9
24,323,820 30,106,331 35,566,109 43,743,614 57,176,352
GROSS PROFIT
8,699,700 16,515,829 27,959,491 42,499,426 60,217,488
OTHER INCOME
Gain on change of fair 5
value of Land - 116,229 122,040 261,482 502,887
value of Investment 250,000 262,500 275,625 289,406 303,877
Property
value of Biological assets - 706,853 1,008,695 1,443,355 2,057,197
250,000 1,085,582 1,406,361 1,994,244 2,863,960

181
OPERATING EXPENSES
Marketing and Selling 10
Expenses
Salaries and Wages
683,912 683,912 683,912 683,912 683,912
Employee Benefits
65,747 65,747 65,747 65,747 65,747
13th Month Pay
56,993 56,993 56,993 56,993 56,993
Transportation
Expense 80,256 88,282 97,110 106,821 117,503
Advertising Expense
240,000 264,000 290,400 319,440 351,384
TOTAL
1,126,908 1,158,933 1,194,161 1,232,912 1,275,538
General and 10
Administrative Expenses
Permits and Licenses
21,150 - - - -
Salaries and Wages
2,507,235 2,507,235 2,507,235 2,507,235 2,507,235
Employee Benefits
223,113 223,113 223,113 223,113 223,113
13th Month Pay
446,226 446,226 446,226 446,226 446,226
Insurance Expense
50,000 50,000 50,000 50,000 50,000
Supplies Expense
216,004 226,805 238,145 250,052 262,555
182
Utilities Expense
(Admin only) 58,536 60,790 63,269 65,995 68,995
Depreciation
Expense-PPE 136,775 136,775 136,775 136,775 136,775
TOTAL
3,659,039 3,650,943 3,664,762 3,679,397 3,694,899
Total Operating Expenses

4,785,947 4,809,876 4,858,924 4,912,309 4,970,437
Net Income Before Tax

4,163,753 12,791,534 24,506,928 39,581,360 58,111,011
Less: Tax Expense (30%)
1,249,126 3,837,460 7,352,078 11,874,408 17,433,303
Net Income After Tax 2,914,627 8,954,074 17,154,849 27,706,952 40,677,707

183
6.4.4 Projected Statement of Changes in Partner’s Equity
Table 6.27 Statement of Changes in Partner’s Equity

Statement of Changes in Partners' Equity
As of the Year
2019 2020 2021 2022 2023

Caballero, Gilbert J. (Capital)
Beginning Capital Balance 8,875,000 9,239,328 10,358,588 12,502,944 15,966,313
Add: Share from Net Income 728,657 2,238,518 4,288,712 6,926,738 10,169,427
Less: Withdrawal (50%) 364,328 1,119,259 2,144,356 3,463,369 5,084,713
Ending Capital Balance 9,239,328 10,358,588 12,502,944 15,966,313 21,051,026
Corros, Recilla B. (Capital)
Less: Withdrawal (50%) 364,328 1,119,259 2,144,356 3,463,369 5,084,713

184
Cristobal, Addriene Ruth A. (Capital)
Less: Withdrawal (50%) 364,328 1,119,259 2,144,356 3,463,369 5,084,713
De Leon, Liezel. (Capital)
Less: Withdrawal (50%) 364,328 1,119,259 2,144,356 3,463,369 5,084,713

185
6.4.5 Projected Cash Flow
Table 6.28 Statement of Cash flow

Statement of Cash Flow
For the Year Ended
Dec.31,2019 Dec.31,2020 Dec.31,2021 Dec.31,2022 Dec.31,2023
OPERATING ACTIVITIES
Net Income Before Tax 4,163,753 12,791,534 24,506,928 39,581,360 58,111,011

Adjustment for:
Gain on change of fair value of Land - (116,229) (122,040) (261,482) (502,887)

Gain on change of fair value of Investment
Property (250,000) (262,500) (275,625) (289,406) (303,877)
Gain on change of fair value of Biological assets - (706,853) (1,008,695) (1,443,355) (2,057,197)
Amortization of Prepaid insurance 50,000 50,000 50,000 50,000 50,000
Depreciation of property plant and equipment 453,278 459,871 466,464 466,464 479,649
4,417,031 12,215,823 23,617,031 38,103,580 55,776,700

Operating gain before working capital changes
186
(Increase)/Decrease in Trade and Other

Receivables (2,063,970) (849,915) (1,056,465) (1,419,840) (1,946,925)
(Increase)/Decrease in Inventory (2,268,443) (499,202) (547,990) (813,395) (1,301,005)
(Increase)/Decrease in Supplies (54,001) (56,701) (59,536) (62,513) (65,639)
Increase/(Decrease) in Trade and Other Payables 2,178,284 27,094 68,363 183,895 509,002
Total Cash Flow generated from/(used) in
Operating Activities 2,208,901 10,837,099 22,021,403 35,991,728 52,972,132
Prepaid insurance paid (150,000) - - (150,000) -
Income tax paid (936,844) (3,190,377) (6,473,424) (10,743,826) (16,043,579)

Net Cash Flow generated/(used) in Operating
Activities 1,122,057 7,646,723 15,547,979 25,097,902 36,928,553
INVESTING ACTIVITIES
Acquisition of Biological Asset (14,137,060) (5,329,994) (7,684,497) (10,833,477) (15,609,957)
Acquisition of property, plant and equipment (10,462,927) (141,270) (141,270) - (282,540)
Acquisition of Investment Property (5,000,000) - - - -

Total Cash Flow generated from/(usedin)
Investing Activities (29,599,987) (5,471,264) (7,825,767) (10,833,477) (15,892,497)
FINANCING ACTIVITIES
Investment of Partners 35,500,000 - - - -

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Withdrawal of Partners (1,457,313) (4,477,037) (8,577,425) (13,853,476) (20,338,854)
Total Cash Flow from Financing Activities 34,042,687 (4,477,037) (8,577,425) (13,853,476) (20,338,854)
Net Cash Flow 5,564,756 (2,301,579) (855,213) 410,949 697,202
Add: Cash balance, Beginning - 5,564,756 3,263,177 2,407,964 2,818,913
Cash Balance, Ending 5,564,756 3,263,177 2,407,964 2,818,913 3,516,116
6.4.6 Projected Balanced Sheet
Table 6.29 Statement of Financial Position (Balance Sheet)

Statement of Financial Position
As of the Year
Note 2019 2020 2021 2022 2023
ASSETS
Current Assets
Cash and Cash Equivalents 5,564,756 3,263,177 2,407,964 2,818,913 3,516,116

Trade and Other
Receivables 1 2,063,970 2,913,885 3,970,350 5,390,190 7,337,115
188
Inventory 2 2,268,443 2,767,645 3,315,635 4,129,030 5,430,035
Supplies 3 54,001 110,702 170,238 232,751 298,390
Prepaid Insurance 4 50,000 50,000 - 50,000 50,000
Total Current Assets 10,001,170 9,105,409 9,864,188 12,620,885 16,631,656
Non-Current Assets
Prepaid Insurance 4 50,000 - - 50,000 -
Investment 6 5,250,000 5,512,500 5,788,125 6,077,531 6,381,408
Biological Asset 7 14,137,060 20,173,907 28,867,099 41,143,932 58,811,085

Property, Plant and
Equipment, net 8 10,009,649 9,807,277 9,604,124 9,399,143 9,704,921
Total Non-Current Assets 29,446,709 35,493,684 44,259,348 56,670,606 74,897,413
TOTAL ASSETS 39,447,879 44,599,094 54,123,537 69,291,490 91,529,069
LIABILITIES AND PARTNERS' EQUITY

Liabilities
Trade and Other Payables 14 2,178,284 2,205,378 2,273,742 2,457,637 2,966,639
Income Tax Payable 312,281 959,365 1,838,020 2,968,602 4,358,326
Total Liabilities 2,490,565 3,164,743 4,111,761 5,426,239 7,324,964

189
Partners' Equity
Caballero, capital 9,239,328 10,358,588 12,502,944 15,966,313 21,051,026
Corros, capital 9,239,328 10,358,588 12,502,944 15,966,313 21,051,026
Cristobal, capital 9,239,328 10,358,588 12,502,944 15,966,313 21,051,026
De Leon, capital 9,239,328 10,358,588 12,502,944 15,966,313 21,051,026
Total Partners' Equity 36,957,313 41,434,350 50,011,775 63,865,251 84,204,105
TOTAL LIABILITIES AND EQUITY 39,447,879 44,599,094 54,123,537 69,291,490 91,529,069

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6.5 Financial Analysis
6.5.1 Profitability Ratio
Profitability ratios are used to assess the company’s ability to generate earnings compared
to its expenses and other relevant costs incurred during a specific period. Having higher value
relative to the same ratio from a previous period indicates that the company is doing well. Gross
profit margin is used to know the portion of money left over from revenues after accounting for
the cost of goods sold. Return on assets or return on investment of assets is used to know how the
company manages its assets to generate income. This ratio is concern with the company’s equity
holders the most. It measures the ability of earning return on equity investments
Table 6.30 Profitability Ratio
Profitability ratio 2019 2020 2021 2022 2023
Return on sales 8.83% 19.21% 27.00% 32.13% 34.65%
Return on assets 21.11% 30.44% 49.65% 64.14% 72.27%
Return on equity 22.53% 32.63% 53.60% 69.52% 78.49%
Gross profit margin 26.34% 35.42% 44.01% 49.28% 51.30%
Operating profit margin 14.86% 77.45% 87.65% 93.13% 96.50%

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6.5.2 Liquidity Ratio
Moving to the next ratio, liquidity ratio measure the company’s ability to pay debt
obligations and its margin of safety through the calculation of metrics including the current ratio
and quick ratio.
Current Ratio computed for 5 years is greater than 1. It only means that the company can
pay its current liabilities using current assets such as cash, accounts receivables, supplies and
inventories.
The quick/acid ratio computed for 5 years are also greater than 1. It shows that the company
can pay its current liabilities by its quick assets. Quick assets considered are cash and accounts
receivables.
Table 6.31 Liquidity Ratio
Liquidity ratio 2019 2020 2021 2022 2023
Current ratio 4.01 2.88 2.40 2.33 2.27
Net working capital 7,510,604 5,940,666 5,752,426 7,194,645 9,306,691
Working capital turnover 4.40 7.85 11.04 11.99 12.61
Asset turnover 1.67 1.11 1.29 1.40 1.46
Quick acid ratio 3.06 1.95 1.55 1.51 1.48

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6.5.3. Solvency Ratio
Solvency ratios used in this study are debt and times interest earned ratio. Solvency ratio
is used to measure the ability of the company to cover its long-term liabilities
Debt ratio or Debt to Assets ratio is computed to know the portion of assets financed by
debt. Although debt ratio for the first year has a high value, the values computed are decreasing.
It implies that total assets increase and can cover the debt of the company. Also, fixed assets are
paid in-cash during the first year of operation that is why it is quite high.
Table 6.32 Solvency Ratio
Solvency ratio 2019 2020 2021 2022 2023
Debt to equity ratio 5.89 5.32 4.55 3.85 3.52
Debt to asset ratio 6.31 7.10 7.60 5.64 8.00
Equity to assets ratio 93.69% 92.90% 92.40% 92.17% 92.00%
6.5.4 Activity Ratio
This financial analysis tool, the activity ratio is used to gauge the ability of the company to
convert various asset, liability and capital accounts into cash or sales. The faster a business is able
to convert its assets into cash or sales, the more efficient it runs.
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Accounts receivable turnover technique is used to measure how quickly a company is able
to collect money that is owed by its customers. It is observed on the table below that accounts
receivable will be collected within 22.5 days
Inventory turnover ratio measures how many times in an accounting period the inventory
balance is sold out.
Table 6.33 Activity Ratio
Activity ratio 2019 2020 2021 2022 2023
Average collection 22.50 22.50 22.50 22.50 22.50
period
Inventory turnover 6.79 8.40 9.93 11.86 16.81
ratio
6.6 Breakeven Analysis
Breakeven point represents the sales amount – in either unit (quantity) or revenue (sales)
terms – that is required to cover total costs, consisting of both fixed and variable cost to the
company. The total profit at the breakeven point is zero which means that the company gains no
profit nor profit loss.
Table 6.34 Breakeven Analysis
2019 2020 2021 2022 2023
Fixed Cost 4,785,947 4,809,876 4,858,923 4,912,308 4,970,437
Variable Cost 65.02 55.06 48.01 43.67 42.12

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Selling Price per Unit 85 85 85 85 85
Break-even point (units) 239,586 160,660 131,358 118,867 115,915
Break-even Point (Peso) 20,364,832 13,656,100 11,165,463 10,103,722 9,852,853
6.7 Capital Recovery and Internal Rate of Return
Capital recovery or Payback period is the length of time required to recover the cost of an
investment. Although payback period ignores the time value of money, it is important to determine
because the longer payback period is not desirable for investments positions.
Internal rate of Return (IRR) is used to estimate the profitability of potential investment. It
is a discount rate that makes the net present value of all cash flows from a particular project equal
to zero. Higher the IRR, the more desirable it is.
Table 6.35 Payback Period and Internal Rate of Return
Year Cash Inflow Net Cash Flow
2019 2,914,626.85 -32,585,373.15
2020 8,954,073.88 -23,631,299.27
2021 17,154,849.48 -6,476,449.79
2022 27,706,952 21,230,502.21
2023 40,677,707.41 61,908,209.62
Payback period (years) 3.23
IRR 30.51%
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6.8 Net Present Value
Net Present Value is the difference between the present value of cash inflows and the
present value of cash outflows over a period of time. The table below shows a positive net present
value and it is desirable to have positive NPV because it assures the company’s profit.
Table 6.36. Net Present Value
Year Cash Inflow Present Value
2019 2,910,560.55 2,645,964.14
2020 8,954,073.88 8,140,067.17
2021 17,154,849.48 15,595,317.71
2022 27,706,952 25,188,138.18
2023 40,677,707.41 36,979,734.01
Amount Invested (35,500,000.00)
NPV 61,904,143.32
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VII. Socio-Economic Study
In this study, the impact of the project to different aspects such as: contribution to
Philippine economy; preventive healthcare; employment generation as well as the social
desirability of the product will be discussed.
7.1 Objectives of the Study
 To define the contribution of the project in the Philippine Economy through income taxes
and flow of goods
 To identify how the project can provide healthcare to its customers especially the Filipinos
 To determine how the project can generate employment especially in the area where the
manufacturing company will be located
 To know how the product can contribute to the improvement of the society
7.2 Contribution to Philippine Economy
The business that will be put up will be beneficial not only for the business owners but also
the country. The share on profits of each business partners from the operations of the company is
subjected to income taxes that can contribute to the Philippine Economy. The taxes generated will
go to the government funds to support public services as mandated by laws. Therefore, it can be
expected that if the company will run its business operations up to many years, the country will
benefit a lot from it.
7.3 Preventive Healthcare
The product can contribute to the preventive healthcare of its consumers. The alternative
sweetener made from Kerson fruit aims to be valued in terms of its health benefits listed as follows:
197
a) It has antibacterial compounds that can help to prevent intestinal bacteria.
b) It contains a huge source of Vitamin C that can help to prevent flu and colds.
c) It has strong antioxidant compounds that prevent some types of cardiovascular diseases.
Antioxidant properties also help to relieve severe headaches.
d) It works to fight Diabetes because it helps to lower blood sugar levels.
e) It also has strong antioxidant properties that help to release free radicals in our bodies.
Invictus Magni will ensure that the manufacturing process of the alternative sweetener will
preserve these health benefits for the consumers.
7.4 Employment Generation
Business start-up can generate a high rate of employment. Since the company will be
located in Bulacan, it can help a lot of Bulakeños especially those who are living in San Miguel
through wages and benefits. Invictus Magni Company will only employ people who are willing to
commit on the organization goals of the business.
7.5 Environmental Desirability
Sugaresa will also impact the society through the plantation of Kerson trees. Since Kerson
trees are fast-growing in tropical areas like the Philippines, the trees can easily help in improving
the surrounding and in reducing air pollution. The Kerson trees can absorb carbon dioxide as well
as potentially harmful gases, such as sulfur dioxide and carbon monoxide. The trees can also help
to reduce water runoffs from storms, thus decreasing flood and soil erosions. Trees also reduce the
greenhouse effect by offsetting the buildup of harmful gases in the air.

198
Therefore, Sugaresa can contribute to the society by planting Kerson trees. It is because
these trees can help to enhance the community and the quality of life of its people.
CONCLUSION
After a series of investigation, observation and data gathering, Invictus Magni Corporation
was able to come up to a natural alternative sweetener made from Kerson fuit called SUGARESA.
SUGARESA aimed to cater the target market which includes people suffering from diabetes,
obesity and health conscious individuals since the Philippines was considered as one of the
diabetes “hot spots” in the Western Pacific Region and has the second lowest obesity and
overweight prevalence and the demand of different alternative sweeteners started to arise in the
market.
Alternative sweeteners hold 15% share in the market and forecasted the revenue to exceed
up to $2 Billion by the end of the year 2023. The researchers also consider technicalities in line
with the production of SUGARESA. The technical aspects discusses the product, its design, the
production process and schedule design, the equipment and machineries, the material handling
system, the facility location and the facility layout containing the process flows within. The
proposed facility will be located at Barangay Pacalag, San Miguel, Bulacan having a lot size of
77,486 square meters. In this aspect manufacturing process is described through operation process
chart; the facilities are designed and pictured in accordance to the demand needed, space
requirement is specified, the process flow, vehicle flow and employee flow are explained,
production schedule are made for the projected 5 years.
To prove the feasibility of the business, Invictus Magni Corporation came up to a financial
study and projected a total cost of PhP 35,095, 930.37. The initial capital requirement sums up to
199
PhP 35,500,000.00 with additional capital that will cover the unexpected expenses and will serve
as a contingency fund. Since Invictus Magni Corporation is an organization, source of financing
would be equally divided to its 4 investors. Additional working capital was added to the total
project cost and resulted to the total required contribution of Pph 8,875,000.00 per investor.
The payback period is expected within 3.23 years and internal rate of return (IRR) of
30.51%. To determine the profitability of the business, net present value was utilized with an
ending value of PhP 63,904,143.32 from 2019 to 2023. After thorough study on the marketing,
technical, managerial and financial aspects of the business, the company also correlates the
socioeconomic impact of the business to different sectors such as contribution to Philippine
Economy, preventive healthcare, employment generation and environmental aspects. The share on
profits of business partners from the operations of the company will be subjected to income taxes
which can contribute and help in sustaining, maintaining, and improving public services provided
by the government to its citizens.
The production of Sugaresa helps promote a healthy lifestyle and prevent high blood sugar
levels, diabetes and other related health implications. In addition to that, the start of the business
can help generate high rate of employment because of the workers and laborers needed in the
production. Also, SUGARESA will be beneficial to the environment. Plantationof Saresa Trees
can help reduce air pollution by absorbing carbon dioxide and other harmful gases and can help
decrease water runoffs, flood and soil erosions in in the nearby areas.
200
REFERENCES
Berkeley Wellness. (2016, June 30). Berkeley Wellness. Retrieved from

http://www.berkeleywellness.com/healthy-eating/food/article/types-sugar-and-sweeteners
Buban, C. E. (2016). Healthy Habits for Pinoys.
Castillo, R. R. (2018, January 09). The Philippines is a diabetes ‘hotspot’. Inquirer.Net.
Chan, M. (2016). Global Report on Diabetes.
Ganguli, S. (2018). The artificial sweetener market to foresee growth from developing countries.
Infoholic Research LLP.
Global Artificial Sweeteners Market, 2024 - Market will Exceed US$ 2 Billion. (2017). Reseach
and Market.
Grant, A. (n.d.). Gardening. Retrieved from Fruit ree Spacing: How far Apart Do You Plant
Fruit Trees in the Garden: https://www.gardeningknowhow.com/edible/fruits/fegen/fruit-
tree-spacing-in garden.htm
Green, E. (2017). 47 percent of consumers are more concerned about sugar consumption than 3
years ago. Food Ingredients.
Haider, P. (2015). 13 Health Benefits of Kerson Fruit.
Paz-Pacheco, E. (2015). Diabetes Care in the Philippines. Journal of the ASEAN Federation of
Endocrine Societies.
Philippine Statistic Authority. (2018). Philippines: Economic growth.
Ricart, MD, PHD2, W., de Pedro-Velasco, MD PHD1, Monero, MD3, S., Moreno, MD, PHD4,
B., & Marrugat, MD, PHD, FESC5, J. (2003). The Relationship Between Physical
Activity andf Metabolic Control in Type 2 Diabetes With <20 Years of Evolution.
Diabetes Care.
Runtastic Team. (2018, 07 23). Runtastic. Retrieved from Runtastic:

https://www.runtastic.com/blog/en/alternatives-to-sugar/
Sugarfree, M. (2018). THE FACTS, EVIDENCE AND CASE FOR ACTION AGAINST
ARTIFICIAL AND GENETICALLY MODIFIED SWEETENERS.
Tacio, H. (2017, July 20). Obese filipinos now ballooning. Business Mirror.
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The Market For High-Intensity Sweeteners Is Expected To Reach Nearly $1.9 Billion In 2017.
(2013, march 03). BCC Research.
Virtual Law Library. (2018, February). Crawlaw. Retrieved from

http://www.chanrobles.com/summaryofcurrentregionaldailyminimumwagerates.html#.X
FzPiVwzbIU
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Sugaresa: A Feasibility Study on the Development of a Healthy Alternative Sweetener

Sugaresa: A Feasibility Study on the Development of a Healthy

offered in NCR, Central Luzon and CALABARZON.

Keywords: Alternative sweetener, Kerson fruit, Diabetes, Feasibility study, Sugaresa

4.1 Objectives of the Study ....................................................................................................... 43

5.6.2 Holidays ................................................................................................................ 148

1.1 Brief Description of the Project

be a problem since the company is planning to have their own plantation.

1.2 Project Summary

and overweight, and health conscious individuals.

1.3 Marketing Aspects

introduce their product in the market.

1.4 Technical Aspects

1.5 Management Aspects

accomplishment of pre-determined goals and bringing together necessary resources; physical,

operational problems, customer problems, business status problems).

1.6 Financial Aspects

and net present value.

1.7 Socio-Economic Aspects

for its consumers.

II. INTRODUCTION OF THE STUDY

2.1 Background of the Study

by 2021. (Sugarfree, 2018)

2.2 Statement of Objectives

analyzed target market

 To establish the profitability of the said business venture by identifying the

necessary and reasonable technicalities needed in production

business venture and the expected return of investments to interested entrepreneurs,

capitalists and investors

2.3 Significance of the Study

Engineering tools and principles.

To The Potential Investors

among other similar product(s) in the market.

To The Future Researchers

related to the objectives of this study.

To The Filipino Community

but competitively valued in terms of health benefits.

2.4 Scope and Limitation

accessible to electricity and water, and it is adjacent to the national roads.

for the finality of this feasibility study.

1.5 Definition of Terms

Sugaresa – An alternative sweetener made from Kerson Fruit

III. Market Study

3.1 Objective of the Study

attaining the success of the company.

Specifically, this study was intended to achieve the following objectives:

market of the product

 To analyze the marketability and sustainability of the business venture; and

competitive advantage in the market

company; and the opportunities and threats on the market.

 Primary Market Research

penetrated. This was done through surveys and interviews.

3.3.1 Consumer and Competitor of the Product

Sugaresa, the product of Invictus Magni Corporation, as compared to other alternative

suffering from obesity and overweight; and health conscious individuals.

of diabetes in the country.

sample indirect competitors of Sugaresa.

Table 3.1 Competitor Analysis

Direct Competitor Indirect Competitor

Artificial Natural  Table Sugar

little to no calories. Here’s where they differ (Berkeley Wellness, 2016):

heatedso it’s not ideal in baked goods.