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Chapter 1
INTRODUCTION
Bread was never a traditional Philippine commodity not until the Spanish
colonial era. Wheat is not a native plant produced in the Philippines. The
Spaniards brought wheat flour to the Philippines in order to create the Christian
host (hostia). What started as an act of converting the Filipinos into Christians
turned out into a tasty common Filipino snack.
Due to its popularity and versatile taste, the Filipinos found a way to
incorporate their creativity into making the favored snack much more interesting
and quirky. This gave birth to the booming enterprise of the bread industry.
With the wide variety of bread that are currently available, the wheat-
based grub is now yet to undergo another delicious phase. We present to you
PanDelicioso.
Affordability, convenience, and most of all, taste – these are the factors
that we considered when we came up with our delectable product. We aim to
make a brand that would create a huge impact on the already stable bread
industry and etch it into the minds of the consumers.
Aside from innovating bread into something unique, the growing health
issues that Filipinos face based on their diet raised a substantial concern to the
partners.
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PROJECT SUMMARY
This chapter presents the chosen name of the business, its location, and
its business operation plan.
Name of the Enterprise
After countless planning and revisions, we decided to choose
“PanDelicioso” as the name of our business as well as our product. It is a
combination of two Spanish words. “Pan” is the Spanish word for “bread” while
“delicioso” alternatively means “delicious” or “tasty”. In conclusion, our enterprise
name means “tasty/delicious bread”.
Location
The location that is highly suitable for the new business venture is right in
the heart of Mandaue City. We see Zamora St., Centro, Mandaue City as an
ideal place to put up our business due to its extreme accessibility to industries
that hold numerous amounts of people. Schools such as Mandaue City Central
School, St. Joseph’s Academy, Mandaue City Comprehensive National High
School, Mandaue City Christian School, and Mandaue City College are all just a
few walks away from Mandaue City Hall where we plan to establish our first
branch. Apart from the hoard of students that frequent the area, the site is also a
busy place since it is near St. Joseph Parish and Mandaue Public Market.
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Definition of the Project
The growing demand for convenience made innovation the fuel for our
technological advancements. People’s lives are quickly changing into fast paced
race for more time. As a result, consumers tend to buy foods that demand less
preparation or production time. These foods are highly convenient but have low
nutritional benefits and are most of the time bland in taste. This realization
resulted in the conceptualization of PanDelicioso.
It came as a huge challenge for us, the partners of the business, to
conceive a brand new food that would hit all of the factors mentioned in the
previous paragraph. Putting to consideration the high availability of bread, we
thought of introducing a product utilizing bread as a main ingredient.
PanDelicioso is a unique treat for the Filipinos’ changing needs. Though
it’s reasonably priced, we made sure not to compromise the quality and taste of
the product. To be competent in the fierce market of the food industry, we also
ascertained that the customers won’t wait for too long to have the goods in their
hands.
PanDelicioso can only be bought from The PanDelicioso Store run and
managed by Ms. Angeline Amahan, Ms. Nikki Cabucos, Ms. Jessica Dolaota,
Ms. Rojane Entia, Ms. Ma. Nieves Matilde Mercader, Mr. Marlon Milan, Mr. Kevin
Olasiman, and Ms. Jamaeca Mariz Viana.
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Project Long Range Objectives
 To introduce a creative bread roll that will satisfy the changing needs of
the customers;
 To be known in the market as great producer of rolled bread;
 To branch out to different places in the Philippines;
 To carve a share in the existing snacks industry;
 To inculcate to the minds of every Filipino and tourist the unique taste of a
diversified rolled bread.
Feasibility Criteria
The main criterion for the study is to maximize profit in the shortest period
of time even if the product is still new in the market.
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HIGHLIGHTS OF THE PROJECT
History
Bread can be easily acquired due to its popularity and demand. Its
widespread distribution made it a household commodity. Upon perceiving this, a
unified thought came to us like a simultaneous epiphany. We imagined turning
simple bread into an appetizing snack that will not undermine quality, taste,
convenience, and affordability. Thus, the idealization of PanDelicioso.
In order to realize this idea, we decided to establish The PanDelicioso
Store. The PanDelicioso Store is the sole enterprise that sells PanDelicioso.
Source of Funds
The partners will be given sixty days to secure the capital that will make
the business operational. The capital will be evenly sourced out from the
partner’s personal monetary resources.
Acquisition of Materials and Equipment Needed for the Opening of the
Business
The materials and equipment needed to run the business will be bought
using the capital collected from the partners. They will also be regularly checked
to avoid unprecedented mishaps.
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Mode of Financing
The PanDelicioso Store is composed of eight individuals. Each of the
partners has agreed to contribute the amount of P4,000.00 from their personal
resources to purchase all the materials needed in the production.
Investment Cost
The capital that is necessary to put up the proposed business is P32,
000.00 and it will be equally divided among the members as their interest in the
business.
Table 1
Equipment
Item Acquisition Cost Quantity Total Cost (Php)
(Php)
LPGTank 2,000.00 1 unit 2,000.00
Stove 790.00 1 unit 790.00
Cooler 700.00 1 unit 700.00
Deep Fryer 2,400.00 1 unit 2,400.00
Rechargeable Light 1,498.50 1 unit 1,498.50
Total 7,388.50
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Table 2
Furniture and Fixtures
(Php)
Chair 170.00 3 pcs. 510.00
Glass Cabinet 1,500 1 unit 1,500.00
Stall 7,000 I unit 7,000.00
Total 9,010.00
Table 3
Tools
(Php)
Dust pan 75.00 2 pcs 150.00
Knife 90.00 2 pcs 180.00
Spider Ladle 89.00 1 pc 89.00
Mixing Bowl 90.00 2 pcs 180.00
Plate 30.00 5 pcs 150.00
Rolling Pin 360.00 2 pcs 720.00
Tray 85.00 3 pcs 255.00
Total 1,724.00
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Table 4
Projected Cost
Item Acquisition Cost Quantity Total Cost
LPG Tank- 2,000.00 1 unit 2,000.00
Stove 790.00 1 unit 790.00
Cooler 700.00 1 unit 700.00
Deep Fryer 2,400.00 1 unit 2,400.00
Chair 170.00 3 pcs. 510.00
Glass Cabinet 1,500 1 unit 1,500.00
Dust pan 75.00 2 pcs 150.00
Knife 90.00 2 pcs 180.00
Plate 30.00 5 pcs 150.00
Tray 85.00 5 pcs 255.00
Stall 7,000.00 1 unit 7,000.00
Total 18,122.50
Investment Cost 18,122.50
Cash Balance 13,877.00
Total Investment Cost 32,000.00
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MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS AND THE
CONCLUSION
Market Feasibility
Market feasibility considers the significance of the business location. It
discusses the market stability that involves in collecting information about a
potential customer and foresee as to how things would work, as well as identify
potential problems. This is completed through research, ideas, products,
processes, and the entire businesses such as the demand, competitive position,
and the 4P’s of marketing. It also covers the general business condition,
competitive condition, target market, demand, supply, product, pricing strategy,
promotion, and packaging. This area talks about the structured questionnaire
floated to the respondents and the result determines the demand and supply and
for the partners to know whether their product will penetrate the target market.
Technical Feasibility
The technical study of the project comprises product description, product
process, equipment and materials, location and layout. In this area, it discusses
how the product “PanDelicioso” is produced, what ingredients and equipment are
needed, and where will the partners put the said business and its layout.
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Financial Feasibility
The financial study shows the capitalization, sources of funds, total sales,
total expenses, income statement, balance sheet, and cash flow statement. This
area discusses if the business is profitable or not. In addition, it serves as a guide
for the partners to know if the transactions within 5 years are increasing or
decreasing.
The start-up capital is not that big but the partners made sure that there is
proper analysis of the cost of the project as well as the potential revenues that
the project can get. If the profit overrides the expenses, then their project is
feasible.
The PanDelicioso Store is expected to commence operations on January
1, 2016 and promotion begins in November 2015 through social networking, buzz
marketing and print marketing. By this, we can minimize advertising expense and
can advertise the product whenever we open our respective social media
accounts.
Socio-Economic Feasibility
The socio-economic study shows the contribution of the study to the
government and to the society. This area proves that the business exist not only
for profit purposes, but also for the improvement of the welfare of the people.
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Management Feasibility
The management study shows the form of ownership, the structure of the
business, job analysis and policies that the partners had formulated.
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Chapter 2
MARKET STUDY
SWOT Analysis
One of the best ways to analyze both internal and external aspect that
would affect a business enterprise is through a SWOT Analysis. SWOT stands
for strengths, weaknesses, opportunities, and threats. A SWOT analysis
identifies strengths and weaknesses within a business enterprise, while
anticipating opportunities and threats from the outside. Determining threats,
focusing on opportunities and taking advantage of the strengths would develop
the strategies to achieve the business goals.
Strengths:
 Short production time/ convenient
 Strategically located
 Low cost that leads to higher profit
Weakness
 Can be easily duplicated at home
 Substandard quality due to inconsistency of ingredients
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Opportunities
 Can supply to school canteens
 Delivery for bulk orders
 Can be a distributor.
Threats
 Tight competition
 Inflation rate
 Fortuitous event
MARKET SEGMENT
Market segmentation is a marketing strategy which involves dividing a
broad target market into subsets. The partners segmented the market into
subsets of consumers, businesses, or are perceived to have common needs,
interests, and priorities, and then designing and implementing strategies to target
them in order to best utilize the resources through buyer based marketing.
Consumers
 Pupils (Both boys and girls)
 Students (from High school to College)
 Teachers
 Parents
 Guards
 Employees
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 Passerby
Identifying a target market is among the most crucial elements for a new
business operator to consider. Without knowing the target market, a business
venture can't expect to survive. Learning to distinguish between different
audiences makes it easier to determine which segment of consumers can truly
patronize the new business venture and whether they are going to become more
than one-purchase customers. With that, the business can focus more on the
segmented customer.
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NAME OF PRODUCT
We consider product naming as a critical part of the branding process,
which includes all of the marketing activities that affect the brand image, such as
positioning and the design of logo, packaging and the product itself. The product
is called “PanDelicioso”.
The reasons for choosing the name were:
 Easy to remember
 Sounds attractive
Properties of the Product
The ingredients of the product were delicately chosen for the safety of the
customers. The product “PanDelicioso” is a bread-based snack that is filled with
cheese and hotdog at the center.
Physical Properties
PanDelicioso has a distinct golden brown color due to the crunchy bread
crumbs that coat the rolled bread. The coating also makes it rough to the touch. It
is cut into even bite size proportions.
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Users of the Product
PanDelicioso tends to distress the purchasing influence of most of the
Filipinos as it is offering a delectable yet affordable and convenient product.
PanDelicioso will have its product reach to its customers mainly through
the following:
Short term plan
- Direct Selling
Long term plan
- Retailing
- Branch out
- Distribution
- Wholesale
Major Users of the Product
- Direct consumers
- Customer
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GEOGRAPHICAL AREAS OF DISPERSION
We not only intend to sell our product to the residents of Barangay Centro
but also to the different groups of people that frequent the area such as students,
working class men, employees of government establishments, and passersby. All
these social groups surround the area due to the institutions that are present
near the location of the business.
PRICE STUDY
The partners considered normally occurring factors that can affect the
price of PanDelicioso. The study showed constant demand of the product on
normal circumstances and the price never hiked or dropped.
The study also showed minimal to no effect on the price of PanDelicioso
during peak season such as Christmas, Lenten, and summer vacation.
Price study can also be conducted through the following:
Table 5
Selling Price of All Similar Products
Bread Products Retail Price (Php)
Japanese Cake 5.00
Angel’s Burger 22.00
Waffle Time- Cheesedog 16.00
Siopao 25.00
Fudgee Bar 8.00
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History of Prices
There are similar products that exist in the market but in different
specialties. The prices of these products range from P5.00-P55.00. Prices of the
existing bread snacks also depend on its gram, on the kind of filling, brand name
and the company who manufactured it. Compared to these prices, the selling
price of PanDelicioso is only P10.50 per stick which is really affordable. This
product is affordable yet does not sacrifice its quality. Since the product is newly
introduced in the market, there would be rare historical price for it.
Product’s Selling Price
Based on the analysis and data gathered through multiple studies, the
selling price of the product “PanDelicioso” will be P10.50 per stick.
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MARKET SHARE
The proposed production volume is 360 pieces of PanDelicioso per day.
The Market share was determined through the census of population in the
location. According to the respective officials of Centro Barangay Hall, the
population in Barangay Centro, Mandaue City is most likely 3,600 and our target
market is 360 which is 10% of the total population and is considered to be our
market share.
MARKETING PROGRAM
Product
PanDelicioso is a bread-based snack. The product comes in bite size
proportion. It is mainly sold by stick.
Promotion
Firstly, PanDelicioso will be marketed through flyers. We will also make
use of social media to post the logo and information of the business for brand
awareness. To further lessen advertising cost, the business will utilize buzz
marketing or “word of mouth” strategy as well.
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Channel of Distribution
The business will have its product reach its customers through direct
marketing. Since the business is still new, we will start by selling directly to the
customers.
Location
The partners considered Zamora St., Centro, Mandaue City, specifically
near the Mandaue City Hall, as a business operation location.
Vicinity Map
Figure 1
1. The group includes programs to help promote the product by:
 Giving flyers to the public particularly in the places near the stall of
PanDelicioso
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 Social networking through Facebook and other websites
 Word of mouth
2. Marketing Plan
As part of the launching of the product, we will make a marketing
plan that will help uphold the product and produce profit in a short span of
time to assess whether it is acceptable in the market such as product
testing.
Current Market Size
The current market size is determined which is 10% of the total population
of Barangay Centro, Mandaue City. Aside from the residents of the barangay,
there are also a considerable amount of working class men and students that
frequent the area.
Target Market Profile
To identify and understand the needs of the customer, customer profiling
has a vital role in gathering effective information about the desire of the
customer. In order to meet their expectations, the partners conducted this
assessment to determine a set of attributes relating to target population, target
group of buyers and in businesses. With this aspect, the researchers can now
attain the aim of reaching potential buyers consists of different factors such as
taste, price, convenience, etc.
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Customer Benefits
PanDelicioso is not just a normal snack. It contains essential vitamins and
minerals that could help alleviate nutritional deficiencies. If ingested, the product
can also serve as a meal since it is composed of foods that are rich in calcium,
iron, protein, and most especially, carbohydrates which are components of a
normal human diet.
Packaging
Figure 2
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Customer’s preferences are very essential in the growth and development
of the entity. Packaging plays a vital role in terms of protection, storage and
hygienic handling of a product and it attracts the consumers in defining the
character of a certain product. By packaging, it helps the consumers to
differentiate one brand from another brand because the product packaging
contains company name, logo and the color scheme of the company. It also
helps consumers to identify the product as it sits among the competition’s
products on store shelves.
Distribution Network
Figure 3
In locating the business, we prefer to establish the stall close to schools,
malls, streets, churches, etc. The distribution process is from producer to
customers.
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Chapter 3
TECHNICAL FEASIBILITY
The location of the business is very strategic as it is highly accessible and
has a large volume of potential customers all day.
The utensils that will be used will be chosen according to its importance
and essentiality to lessen expenses and to maximize the quality. The tools will be
properly cleaned and sanitized to maintain cleanliness.
The workers need to be well groomed complete with hairnet, apron, and
gloves. They will also be constantly evaluated.
With regards to preparation time of the product, it only takes less than 3
minutes to hand over the product to the customer. The product is cooked upon
order to keep it at its best when consumed by the valued customer.
PRODUCT
PanDelicioso is a new product in the business industry which is aiming to
penetrate the market. This product is affordable yet does not compromise taste
and quality. The product is reasonably priced in order to cater to the demands of
the customers in response to their needs.
Bread is the main ingredient of the product; we have also considered its
price and its benefits. Accordingly, bread is both low-cost and readily available in
the market.
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MANUFACTURING PROCESS
Step 1: Prepare the Step 2: Remove the dark Step 3: Heat the cooking
ingredients ends of the sliced bread. oil in a cooking pot.
Step 4: Lay each bread Step 5: Arrange the Step 6: Dip the rolled
slice flat and then put a hotdog and cheese on bread in beaten egg.
cling wrap on over each the bread. Roll the bread Place the bread crumbs in
piece. until the filling is covered. a large plate.
Step 8: Fry in low to

Step 7: Roll the bread Step 9: Slice the rolled
medium heat until the
until everything is bread into fun size and
color turns golden brown
covered with crumbs. put it in the stick.
(about 1 minute).
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STALL SIZE AND PRODUCTION SCHEDULE
In having a business, it is really important to consider the stall size. In
choosing, the following factors have to be considered: availability of space and its
utilization of the designated area of production. PanDelicioso chooses a medium
sized stall. The stall has a size of 8 square meters.
Table 6
Secs. 30 60 90 120 150 180 210 240 270 300 330 360
Mins. 3 mins
Tools and Equipment
A. Preparation of the ingredients and materials needed. (30 secs)
B. Combine egg and milk in a mixing bowl. (30 secs)
C. Flatten the bread with the rolling pin. (30 secs)
D. Mixed the ingredients: cheese, hotdog and bread (30 secs)
crumbs
E. Heating of pan. Put the roll bread inside the pan until the color becomes
golden brown. (1 min)
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Equipment, utensils and materials that are used in the production process
are fixed assets and are acquired as additional permanent assets. The following
tools are used in producing PanDelecioso:
 LPG Tank
 Cooler
 Aprons
 Rolling Pin
 Deep fryer
 Plates
 Knife
 Wooden Spoon
 Mixing Bowl
 Rechargeable light
 Tray
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STALL LOCATION
The location that is highly suitable for the new business venture is right in
the heart of Mandaue City. We see Zamora St., Centro, Mandaue City as an
ideal place to put up our business due to its extreme accessibility to industries
that hold numerous amounts of people. Schools such as Mandaue City Central
School, St. Joseph’s Academy, Mandaue City Comprehensive National High
School, Mandaue City Christian School, and Mandaue City College are all just a
few walks away from Mandaue City Hall where we plan to establish our first
branch. Apart from the hoard of students that frequent the area, the site is also a
busy place since it is near St. Joseph Parish and Mandaue Public Market.
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STALL LAYOUT
Figure 4
A captivating stall layout must be carefully evaluated to ensure and
establish a healthy production environment. The stall plays an important role in
the production process to introduce system of production control & selling and
administrative purposes. It helps the partners to work comfortably. The raw
materials and equipment should be put together in their proper place so that the
partners will not have a hard time during the production. Materials that are not
needed should be kept and the materials that are needed will be properly
arranged. Also, proper sanitation and cleanliness should be taken into
consideration.
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RAW MATERIALS AND SUPPLIES
The researchers did a canvassing to acquire the best accessible way to
get the best raw materials for the product. The researchers tend to analyze the
best way on how to minimize cost of the materials needed.
Good bread provides fiber and carbohydrates. Good bread never goes out
of style. Bread, the main ingredient of the product, is abundant in Mandaue City.
There are many bakeshops available in Mandaue City with lesser price. The
partners tend to buy the ingredients from the market, and grocery stores that
offer a lesser price to minimize cost.
Utilities
Utilities such as electricity, gas, and water play an important role in the
production process schedule and capacity utilization. The business cannot
operate and function well without these utilities. Quality utilities are a prerequisite
for effective production.
All of the utilities are important as missing one can create a problem in the
production process. Gas is a major utility in the production process since it is
used primarily in cooking the food products. It is very important to have access to
water primarily for cleaning the tools and equipment, first aid and basic hygiene.
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WASTE DISPOSAL
Disposing of waste in an environment-friendly manner is crucial in a
business especially in a food business as it may harm the public which would in
return harm the business. As a new business establishment aiming to penetrate
the market, we would look for ways not to endanger our valued customer. The
group decided to lessen the waste through different waste management tactics
like recycling and minimizing waste. The business will minimize using plastics,
bottles, etc. The business will take useful discarded items and recover the
resources that can be useful.
Since the nature of business is selling food, proper waste disposal is
considered by the researchers. This helps us maintain the environment and our
valued customers.
The wastes include foods that are no longer intended for human
consumption. Any waste food (including used cooking oil), will be separated from
the paper and plastic wastes and will be disposed through the city’s trash
service.
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PRODUCTION COST
Cost of Production is the sum of costs related
to making or acquiring goods and services that directly generates revenue for a
firm. It comprises of direct and indirect costs. Direct costs are those that are
traceable to the creation of a product and include costs
for materials and labor whereas indirect costs refer to those costs that cannot be
traced to the product such as overhead.
To figure out the cost of production per unit, the cost of production is
divided by the number of units produced. A company that knows how much it will
cost to produce an item, or produce a service, will have a clearer picture of how
to better price the item or service and what will be the total cost to the company.
Product cost refers to the sum of all costs associated with the production of a
specific quantity of a good or service. These costs include direct labor, direct
materials, consumable production supplies, and factory overhead.
However, product cost can also be considered the cost of labor required to
deliver a service.
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TABLE 7
(Php)
LPG Tank- 2,000.00 1 unit 2,000.00
Stove 790.00 1 unit 790.00
Cooler 700.00 1 unit 700.00
Deep Fryer 2,400.00 1 unit 2,400.00
Chair 170.00 3 pcs. 510.00
Glass Cabinet 1,500.00 1 unit 1,500.00
Dust pan 75.00 2 pcs 150.00
Knife 90.00 2 pcs 180.00
Plate 30.00 5 pcs 150.00
Tray 85.00 5 pcs 255.00
Stall 3,500.00 1 unit 3,500.00
Total 14,622.50
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LABOR EQUIPMENT
Production is a method and a process of combining various material
inputs (raw materials, machines, finished goods) and immaterial inputs (idea
information) in order to make the desired output (good or services). Labor is one
factor of production where a human exerts physical and mental effort paid by
wages for the creation of goods and services. The group will not hire workers
because they have agreed that the group will work and manage the business.
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MANAGEMENT POLICIES
There are different rules and regulations that any business establishment
should abide and should be implemented by the management. As their guiding
paths towards business growth, stability and success, the group made the vision,
mission, goals and objectives of the given enterprise.
Vision
Pandelicioso will be the benchmark for bread roll business operations and
be the best choice for customers.
Mission
To serve customers by providing deliciously made bread rolls with a
quality service that would make them come back for more.
Objective
To maximize profit and build connection to the customers through
satisfaction.
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Chapter 4
FINANCIAL STUDY
This study will cover the presentation of the anticipated profitability. The
position of the preparations of the financial study must be capable of being
justified, realizable and the workable since we discover the whereabouts of our
financial study from the costing up to its financial statement.
MAJOR ASSUMPTION
 The enterprise is using the cash basis of accounting. Purchases of raw
materials should also be on a cash basis.
 Our proposed business is a micro one; therefore the government
incentives and regulation that would produce change to the project are at
minimum. The business will be taxed at a rate of 30% of the taxable
income required by BIR.
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Table 8
Depreciation-Production
Item Acquisition Quantity Total Cost Useful Depreciation

Cost (Php) Life (Php)
LPG Tank 2,000.00 1 unit 2,000.00 10 200.00
Stove 790.00 1 unit 790.00 10 79.00
Cooler 700.00 1 unit 700.00 3 233.33
Deep Fryer 2,400.00 1 unit 2,400.00 10 240.00
Rechargeable 1,498.50 1 unit 1,498.50 3 499.50
light
Chair 170.00 3 pcs. 510.00 10 51.00
Glass Cabinet 1,500.00 1 unit 1,500.00 10 150.00
Dust pan 75.00 2 pcs 150.00 3 50.00
Knife 90.00 2 pcs 180.00 3 60.00
Spider Ladle 89.00 1 pc 89.00 3 29.70
Mixing Bowl 90.00 2 pcs 180.00 5 36.00
Plate 30.00 5 pcs 150.00 5 30.00
Rolling pin 360.00 2 pcs 720.00 5 144.00
Tray 85.00 5 pcs 255.00 5 85.00
Stall— 3,500.00 1 unit 3,500.00 15 233.33
production
Total 14,622.50 2,120.86
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Depreciation:
Cost / Useful Life
Rent Expense for space P7, 000.00
 Production area/ factory - 50% P3,500.00
 Selling and administrative cost - 50% P3,500.00
Utilities-Water & Electricity (per month) P600.00
Freight in (per month) P1, 500.00
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PRODUCT COSTING (DAILY OPERATION)
Raw Material
Production Cost
INGREDIENTS QUANTITY UNIT COST TOTAL
Bread 12 packs 30.00 360.00
Hot dog 4 packs 182.00 728.00
Bread Crumbs 2 packs 57.45 114.90
Cheese 4 boxes 42.70 170.80
Eggs 64 pieces 5.00 320.00
Oil 2 kilos 60.00 120.00
Freight in ( 1,500/30days) 50.00
Total Raw Materials 1,863.70
Direct Labor 8 persons 100.00 800.00
Variable Overhead: 45.00
Skewer ( 360@ 0.125) 0.50
Packaging/wrapper(100/200pcs) 14.45 59.95
LPG(1,300/3mos/30days)
Fixed Overhead: 5.67
Hairnet ( 170/30days) 0.39
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Gloves (50/30days) 1.00
Apron(360/12mos/30days) 0.56
Brooms (100/6mos/ 30days)
Depreciation Expense 5.89
(2,120.86/12mos/30days)
Utilities (400/30days) 13.33
Rent Expense allocated to
factory (3,500/30days) 116.67 143.51
Total Cost 2,867.16
Unit Cost= P 2,867.16/360 sticks
= P7.96
33% mark-up
Selling Price= P7.96 *1.33
=P10.50
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FINANCIAL ASSUMPTION
 The approximate volume of product sales is based on our target market.
 Investment cost needed a capital of P32, 000.00.
 The capital comes from the partners’ personal savings and resources
which will be P4, 000.00 each.
 Direct Materials will increase at a rate of 1.92% each year.
 Transportation allowance or freight in of P1, 500 is allocated every month.
 Production volume will increase 90 sticks every year.
 Selling price is 33% above cost.
 1.92% Inflation rate for raw materials purchased annually.
 The partners’ will carry on the business and is subjected toP100.00 wage
(P10.00 per hour) per day.
 The finance/accounting officer and the manager will receive an additional
pay of P2, 000 per month.
 No salary increase for the succeeding years.
 The stall is used for production and selling and administrative purposes in
a ratio of 50:50.
 Each partner will receive an amount P3, 000 each year as their 13th month
pay.
 Allocation of 7,000.00 per month for the rental payment (50% for
production and 50% selling and administrative).
 Lease contract states that there is no increase of rental payment for the
first 5 years.
41
 Allocation of P600.00 for utilities (water and electricity) per month.
 Tools, equipment and furniture & fixtures are depreciated using the
straight line method.
 25% of the annual net income is added to the capital and the 75% is to be
divided equally among the partners as their profit share.
42
(Insert here)
Table 9
SCHEDULE OF COST PER PRICE EVERY YEAR: (DAILY BASIS)
43
Insert here
Table 10
STATEMENT OF CASH FLOW 2016-2020
44
45
PANDELICIOSO
Income Statement
For the Year Ended December 31, 2016
Sales (schedule 1; page 61) 1,360,800.00
Cost of Sales (schedule 2; page 62) 1,032,912.00
Gross Profit 327,888.00
Selling & Administrative Expenses:
Rent (schedule 3; page 63) 42,000.00
Depreciation-stall (schedule 6; page 66) 233.33
Salaries (schedule 4; page 64 ) 48,000.00
Thirteen month pay (schedule 5; page 65 ) 24,000.00 114,233.33
Start-up Cost:
Permits & Licenses 5,000.00
Feasibility Expenses 1,500.00 6,500.00
Income before tax 207,154.67
Income tax expense (207,154.67*30%) 62,146.40
Net Income 145,008.27
46
PANDELICIOSO
Income Statement
Sales (schedule 1; page 61 ) 1,701,000.00
Cost of Sales (schedule 2; page 62 ) 1,296,000.00
Rent (schedule 3; page 63 ) 42,000.00
Depreciation-stall (schedule 6; page 66 ) 233.33
Net income 203,536.67
47
PANDELICIOSO
Income Statement
Rent (schedule 3; page 63) 42,000.00
48
PANDELICIOSO
Income Statement
Sales (schedule 1; page 61) 2,494,800.00
Depreciation-stall (schedule 6; page 66) 233.33
49
PANDELICIOSO
Income Statement
50
PANDELICIOSO
Statement of Cash Flow
Collections from Customers:

Total Sales ( schedule 1; page 61) 1,360,800.00
Cash payment for production costs:

Cost of Sales ( schedule 2; page 62) (1,032,912.00)
Cash payment for Selling and Administrative Expenses

(schedule 7; page 67) (114,233.33)
Cash paid for Income tax expense (schedule 7; page 67) (62,146.40)
Cash paid for start-up cost (income statement; page 46) (6,500.00)
Net Income (schedule 7, page 67) 145,008.27
Add back: Depreciation (page 43) 2,354.19
Net cash provided by operating activities 147,362.46
Capital 32,000.00
Payment of Profit Share (schedule 8; page 68) (108,756.20)
Net cash provided by financing activities (76,756.20)
Purchase of tools, equipment, furniture and fixtures

(table 4 ; page 8) (18,122.50)
Net cash provided by investing activities (18,122.50)
Net cash, end 52,483.76
51
PANDELICIOSO



(schedule 7; page 67) (114,233.33)
Net income (schedule 7, page 67) 203,536.67
Add back: Depreciation(page 43) 2,354.19
Cash, Beginning Balance (page 51) 52,483.76
0.00
Net cash provided by investing activities 0.00
52
PANDELICIOSO



(schedule 7; page 67) (114,233.33)
Net income (schedule 7, page 67) 253,432.67
Cash, Beginning balance (page 52) 105,722.12
0.00
Net cash, end 171,,434.48
53
PANDELICIOSO



(schedule 7; page 67) (114,233.33)
Net income (schedule 7;page 67) 378,853.07
Add back: Depreciation 2,405.38
Cash, beginning balance (page 53) 171,434.48
Purchase of tools & equipment (2,771.17)

(table 16 ; page 73)
Net cash provided by investing activities (2,771.17)
54
PANDELICIOSO



(schedule 7; page 67) (114,233.33)
Net Income (schedule 7; page 67) 428,068.67
Cash, Beginning balance (page 54) 265,781.96
0.00
55
PANDELICIOSO
Statement of Financial Position
Cash (Cash flow; page 51) 52,483.76
Fixed Assets:
Carrying Amount (page 8) 18,122.50
Less: Accumulated Depreciation 2,354.19 15,768.31
(page 43)
Total Assets 68,252.07
Accounts Payable 0.00
Capital
Partners’ total contribution 32,000.00
Net Income 145,008.27 177,008.27
(schedule 7; page 67)
Withdrawals (schedule 8, page 68) 108,756.20
Total Liabilities and Capital 68,252.07
56
PANDELICIOSO
Fixed Assets:
Carrying Amount (page56) 15,768.31
(page 43)
Capital
Beginning Balance (page 56) 68,252.07
Net Income (schedule 7; page 203,536.67 271,788.74
57)
57
PANDELICIOSO
Fixed Assets:
(page 43)
Capital

67)
58
PANDELICIOSO
Fixed Assets:
New purchased Tools (table 17; 2,771.17
page 72 )
(page 43)
Capital
67)
59
PANDELICIOSO
Fixed Assets:
(page 43)
Capital

67)
60
The following are the purchases of supplies- tools and equipment on their
respective years:
Table 12
First year purchase

Qty. Price Total Annual Cost
Hair net 2 packs/month 85.00 170.00 2,040.00
Gloves 1 pack/month 50.00 50.00 600.00
Apron 1 bulk/year 360.00 360.00 360.00
Brooms 2pcs/year 100.00 200.00 200.00
3,200.00
Table 13
Second year purchase

Apron 1 bulk/year 366.91 366.91 366.91
Brooms 2pcs/year 101.92 203.84 203.84
3,261.44
61
Table 14
Third year purchase

Apron 1 bulk/year 373.96 373.96 373.96
Brooms 2pcs/year 103.88 207.76 207.76
3,324.06
Table 15
Fourth year purchase

Apron 1 bulk/year 381.14 381.14 381.14
Brooms 2pcs/year 105.87 211.74 211.74
3,387.88
62
Table 16
Fourth Year- Fixed Assets Purchase

Qty. Price Total
Cooler 1 unit 741.10 741.10
Rechargeable Light 1unit 1,586.48 1,586.48
Dust pan 2 pcs 79.40 158.80
Knife 2 pcs 95.28 190.56
Spider Ladle 1 pc 94.23 94.23
2,771.17
Table 17
Fifth year purchase

Apron 1 bulk/year 388.46 388.46 388.46
Brooms 2pcs/year 107.90 215.81 215.81
3,452.93
63
OVERALL PROJECT PLANNING
The first week will be profitably used in overall planning for the project.
The project planning includes the analysis of data needed for the project
considering financing, marketing, management, technical, taxation, and legal and
socio-economic aspects. This stage will allow the prospects to finally make the
economic decisions as to the introduction of the project.
Source of Funds (June 8, 2015- August 8, 2015)
Sixty days is to be allotted in acquiring the capital that will be used in the
business operation. No difficulties in acquiring capital to run the operation since
this will be coming from the partner’s personal resources.
Acquiring Licenses and Registration (August 8, 2015- August 29, 2015)
Three weeks is to be allotted in securing all the important documents that
are needed such as permits and licenses.
64
Canvassing for Sources and Raw Materials (August 29, 2015- September 2,
2015 )
One week and a half will be set for canvassing of the raw materials
particularly in the wet market.
Low prices yet high quality raw materials will be the priority in canvassing
the ingredients like bread, hotdog, bread crumbs, egg, cheese, and oil.
Acquisition of all the Materials and Equipment needed for the Opening of
the Business (September 2, 2015- October 3, 2015)
At this point of time, all the materials and equipment needed in the
business will be acquired and will be placed in the production area for
preparation and will be check if this needed materials and equipment will be fully
ready for the production process.
Normal Operation (January 1, 2016)
After all the activities have been completed the normal operation can start.
65
Chapter 5
SOCIO-ECONOMIC ACTIVITY
This chapter includes the socio-economic benefits of the proposed project.
The proposed project aims to help our localities and market vendors of the
country and to give healthy lifestyle to the people. Nowadays it is important that
small entrepreneurs should realize the importance of innovating and starting a
business that would largely contribute to the socio-economic development of the
country.
As the business grows, the tax payable gets higher as well. These tax
payments will be used by the government to build better infrastructure, buildings,
roads, and other projects that would help both the society and the economy.
66
Chapter 6
MANAGEMENT STUDY
The management feasibility gives details on the form of business
ownership, capitalization, organizational structure, man power requirements,
compensation, organization policies, and legal requirements.
FORM OF OWNERSHIP
The form of ownership of the business is Partnership. We have decided to
make our business a partnership because of the following reasons:
 We are composed of 8 individuals which cannot form a sole
proprietorship;
 The nature of the business is appropriate for a partnership; and
 Forming a corporation is risky and difficult.
The partnership is formed by 8 individuals who agreed to have a common share
of 12.5%. These are the following partners:
 Amahan, Angeline
 Cabucos, Nikki
 Dolaota, Jessica
67
 Entia, Rojane
 Mercader, Ma. Nieves Matilde
 Milan, Marlon
 Olasiman, Kevin
 Viana, Jamaeca Mariz
ORGANIZATIONAL CHART
Accounting Officer
Marketing Officer
Ma. Nieves Matilde
Jamaeca Mariz Viana
Mercader
Purchasing Officer Purchasing Officer

Marlon Milan Kevin Olasiman
Production Production Production Production

Personnel Personnel Personnel Personnel
Angeline Amahan Nikki Cabucos Jessica Dolaota Rojane Entia
 All partners will work in the production process. They will be subject to
weekly job rotation.
 Ma. Nieves Matilde Mercader is appointed as the Accounting Officer.
68
 Jamaeca Mariz Viana will work as Marketing Officer.
 Kevin Olasiman and Marlon Milan are appointed to work as the
purchasing officers in the partnership.
 Angeline Amahan, Nikki Cabucos, Jessica Dolaota, and Rojane Entia are
in charge of production.
OFFICERS AND KEY PERSONNELS
Position: Accounting Officer
 Prepare monthly analysis of cost of goods sold and operational expenses
against the prior year and budget, providing explanations and business
solutions to help mitigate the risks
 Determine financial impact due to product cost reductions and prepare
periodic forecasts to update management on projected results.
 Analyze financial performance
 Identify, investigate, and analyze potential operational improvement. If
deemed necessary, based on findings, make proposal for operational
changes
 Achieve financial sustainability during the development of latest business
opportunities
Position: General Manager
69
 Establish goals and objectives of the organization and ensure delivery
according to the agreed plan
 Analyze and assess continuity of the organization’s performance against
the stated objectives
 Finalize a business plan and develop managing budget
 Develop an operational plan
 Define the product sales and marketing plan
 Develop a market customer
 Maintain a safe and clean work environment
Position: Purchasing Agent
 Verify purchase requisitions by comparing items requested to master list,
clarifying unclear items, and recommending alternatives
 Acquire goods used in production
 Assure that all production materials bought are in good quality
 Obtain purchased items
 Inspect receipt of items
Position: Production Personnel
 Spearhead the production
 Clean production area
 Sweep, mop, and remove debris
 Load and unload items
 Feed or place items onto equipment for processing

70
 Measure and pour ingredients
 Ensure conformance to specifications
 Turn valves to regulate flow of liquids or gas
 Mix ingredients
 Remove product and machine attachments
 Scrape waste material from machine
 Record data
71
INSERT PICTURE
Name:
Address:
Tel.No.:
e-mail:
PERSONAL BACKGROUND
Age : 21
Nationality : Filipino
Religion : Born Again Christian
Height : 5’2
Weight : 48 kgs.
Civil Status : Single
EDUCATIONAL BACKGROUND
Elementary Olivarez College

2006 - 2007
High School University of Southern Philippines Foundation

Lahug campus
2010 – 2011
College University of Southern Philippines Foundation

Bachelor of Science in Business Administration
Major in Marketing Management
2013 – 2016
AFFILIATION
JMACS Junior Marketers and Closure Society

College
Member
2013 – 2016
72

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Chapter 1

turned out into a tasty common Filipino snack.

that we considered when we came up with our delectable product. We aim to

industry and etch it into the minds of the consumers.

its business operation plan.

Name of the Enterprise

After countless planning and revisions, we decided to choose

“PanDelicioso” as the name of our business as well as our product. It is a

“delicioso” alternatively means “delicious” or “tasty”. In conclusion, our enterprise

name means “tasty/delicious bread”.

School, St. Joseph’s Academy, Mandaue City Comprehensive National High

resulted in the conceptualization of PanDelicioso.

It came as a huge challenge for us, the partners of the business, to

previous paragraph. Putting to consideration the high availability of bread, we

thought of introducing a product utilizing bread as a main ingredient.

PanDelicioso is a unique treat for the Filipinos’ changing needs. Though

Olasiman, and Ms. Jamaeca Mariz Viana.

 To be known in the market as great producer of rolled bread;

 To branch out to different places in the Philippines;

 To carve a share in the existing snacks industry;

diversified rolled bread.

of time even if the product is still new in the market.

widespread distribution made it a household commodity. Upon perceiving this, a

unified thought came to us like a simultaneous epiphany. We imagined turning

convenience, and affordability. Thus, the idealization of PanDelicioso.

In order to realize this idea, we decided to establish The PanDelicioso

partner’s personal monetary resources.

Acquisition of Materials and Equipment Needed for the Opening of the

to avoid unprecedented mishaps.

The PanDelicioso Store is composed of eight individuals. Each of the

resources to purchase all the materials needed in the production.

The capital that is necessary to put up the proposed business is P32,

Item Acquisition Cost Quantity Total Cost (Php)

LPGTank 2,000.00 1 unit 2,000.00

Stove 790.00 1 unit 790.00

Cooler 700.00 1 unit 700.00

Deep Fryer 2,400.00 1 unit 2,400.00

Rechargeable Light 1,498.50 1 unit 1,498.50

Furniture and Fixtures

Item Acquisition Cost Quantity Total Cost (Php)

Chair 170.00 3 pcs. 510.00

Glass Cabinet 1,500 1 unit 1,500.00

Stall 7,000 I unit 7,000.00

Item Acquisition Cost Quantity Total Cost (Php)

Dust pan 75.00 2 pcs 150.00

Knife 90.00 2 pcs 180.00

Spider Ladle 89.00 1 pc 89.00

Mixing Bowl 90.00 2 pcs 180.00

Plate 30.00 5 pcs 150.00

Rolling Pin 360.00 2 pcs 720.00

Tray 85.00 3 pcs 255.00

Item Acquisition Cost Quantity Total Cost

LPG Tank- 2,000.00 1 unit 2,000.00

Stove 790.00 1 unit 790.00

Cooler 700.00 1 unit 700.00

Deep Fryer 2,400.00 1 unit 2,400.00

Rechargeable Light 1,498.50 1 unit 1,498.50

Chair 170.00 3 pcs. 510.00

Glass Cabinet 1,500 1 unit 1,500.00

Dust pan 75.00 2 pcs 150.00

Knife 90.00 2 pcs 180.00

Spider Ladle 89.00 1 pc 89.00

Mixing Bowl 90.00 2 pcs 180.00