Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
CHAPTER I
INTRODUCTION
Background of the Study
Many of the world’s finest creations trace back to classical and ancient times.
Papyrus and hieroglyphics came from ancient Egypt, and the Romans, aside from
aqueducts and military tactics, are thought to have given us all used types of pastry. Using
natural sweeteners, it’s thought that the Romans, Greeks, and ancient Egyptians used a
filo-type pastry when creating sweet tarts, fruits pastries, and honey cakes, as well as
dumplings stuffed with nuts and dates. (Desel, 2018).
Pastries gain a massive sale in London streets. It became an accessible business
and adopted by lots of people. Moreover, the first cafeteria which sold baked goods was
established in Paris. (Rahul, 2017).
As a nation tied to vibrant food culture, beloved staples have become a huge part
of the Filipino lifestyle. Apart from history, socio-cultural practices, cooking methods,
and traditions, it also carries stories that must be preserved and passed on to elevate one’s
sense of pride in local culture and enable one to support local industries. (Times, 2017)
According to the 2013 Annual Survey of Philippine Business and Industry (ASPBI),
released by Philippine Statistics Authority (PSA) in 2016, bread, cakes, pastries, pies and
similar ‘perishable’ bakery products were accounted for the most number of
manufacturing establishments in the formal sector of the Philippine economy.
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
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Cupcake is considered to be one of the best and popular desserts in the world. It
was then introduced in the United States in the 19th century, and it was revolutionary
because of the amount of time it saved in the kitchen.
The name of the cupcake originated from two theories: the cakes were originally
cooked in cups and the other one the ingredients used to make the cupcakes measured out
by cups (Food Timeline Web).
On the early part, cupcakes were called “number” cakes, for reasons that they
were easy to remember by the measurements of ingredients it took to create them but
today cupcakes have expanded to a wide variety of ingredients, measurements, shapes
and decorations. Cupcakes were convenient because they cooked much quicker than
larger cakes. When baking was down in heart ovens, it would consume a lot time to bake
a cake, and the final product would often be burned. Since their creation, 201th century,
cupcakes have become a pop culture trend in the culinary world. (DMCA, 2017) .
Polvoron is a Filipino-style shortbread made of toasted flour, powdered milk,
sugar, and butter. Sweet, buttery, and easy to customize with different flavors, it’s a
delicious snack or dessert and great for gift giving, too. Polvoron is a type of shortbread
popular in Spain and its former colonies in Latin America and the Philippines. As its
name which comes from the Spanish word polvo (“powder” or “dust”) suggests, it’s a
soft, crumbly confection made of flour, milk, sugar, fat, and nuts. While the traditional
Filipino version uses powdered full cream milk, toasted flour, sugar, and butter or
margarine, other ingredients such as ube (purple yam), strawberry, pinipig (crispy rice),
cashew, and cookies are also commonly added as flavor variants.
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College of Business Management and Accountancy
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The mixture is shaped into small portions using tin molds and then wrapped
individually in colorful cellophane or Japanese paper to maintain freshness. (Lalaine,
2017).
In both Norway and Sweden they called pastries as “lussekartt” and “lussebulle”.
It consists of plain flour, butter, yeast, caster sugar, currants and sultanas. It originally
came from England (Cornwall). The Netherlands and Sweden. The “revel bun” from
Cornwall is baked from special occasion, such as anniversary feasts (revels), or the
dedication of a church in the west of Cornwall large saffron buns are also known as “tea
treat buns” and are associated. In Sweden and Norway no cinnamon or nutmeg is used in
the bun, and raisin are used instead of currants. The burns are baked into many traditional
shapes, of the simplest is a reversed S-shape. (Go, 2017)
The word “shake” first appeared in print in 1885. At this time, shakes were an
eggnog-like drink made with whiskey. However, by the turn of the century, shakes were
no longer alcoholic and were made with flavored syrups, such as vanilla, chocolate, or
strawberry. By 1930, shakes referred to the sweet treat we know today, with ice cream,
milk, and syrup blended together.
The evolution of this drink has a lot to do with the invention of electric blenders.
Before blenders were widely available, shakes were hand-shaken, which is why they were
an eggnog-like texture. In 1911, Hamilton Beach invented a drink mixer that was adopted
by soda fountains, making shakes easier than ever to make. In 1922, Steven Poplawski
invented the blender, and that was when shakes began to be made in their whipped,
modern form. (Soda Shop, 2019).
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College of Business Management and Accountancy
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Momordica charantia or locally known as “Ampalaya” is known for its antidiabetic properties. Ampalaya or bitter gourd is an herbal plant popular for its bitter taste
but contain medicinal properties and numerous health benefits to the body.
Ampalaya (Bitter Gourd) is a climbing vine and the tendrils of which grow up to
20 centimeters long. This vegetable usually grows in tropical countries in Asia such as
the Philippines. It belongs to the family of Cucurbitaceae which originated in India and
later introduced to China in the 14th century. (Health, 2015). Ampalaya leaves are heartshaped, which are 5 to 10 centimeters in diameter. The fruits of the ampalaya vine are
fleshy green with pointed ends at length. It can never be mistaken for any other variety
because its ribbed and wrinkled surface had always been ampalaya’s distinct physical
structure. The bitter taste of the ampalaya fruit had also been the distinguishing factor
from the rest of the fruits with medical value, and this is due to the presence of a substance
known as momorcidin. (Ladera, 2017)
Ampalaya is oblong in shape and its skin is smooth. This fruit is a best source of
vitamins B1, B2, B3 and C. It is also rich in iron, calcium and full of dietary fiber. This
bitter fruit has magnesium, folate, zinc, manganese and phosphorus. It contains three
active substances with anti-diabetic properties, including charantin which has been
confirmed to have a blood glucose-lowering effect, vaccine and an insulin-lie compound
known as glucose. (Brewster, 2018)
It is also safe for pregnant women to eat Ampalaya because it has high folate and
fiber content, anti-oxidant, regulates good vowel movement, great source of nutrients
needed by the fetus and it is source of other nutrients. Ampalaya has a positive effect on
diabetes, blood pressure, cancer, pneumonia, infection and in immune system. Some
Carlos Hilado Memorial State College
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College of Business Management and Accountancy
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people think that this kind of product may not work because of its taste and possibly the
majority will not take a risk to eat. Because of this mind set, it is very challenging for the
researcher to create this study to prove that the bitterness of the Ampalaya would not
exist. Also through this, both respondents and researchers have a knowledge about the
best effects of Ampalaya in our lives including its benefits in the economy and in our
health. (Agron, 2010)
Health awareness is the prime investment, ingenuity is the investor’s joining effort
and wellness is the net gain. Most people think that they buy a product that is appealing
to them and adapting a healthy and well-conditioned life is expensive and difficult to
achieve especially for those who are having financial problems. The significance is just
how one responsibility and used the cheap, natural abundance of nature in many ways.
Ampalaya is rich in vitamins and minerals. It contains less of the Vitamin C
content present in oranges but it’s sufficient enough for everyday consumption. Vitamin
C help us in improving your immunity and thus keep your body healthy and protects it
from pathegons that cause infections. Being diagnosed with cancer can be a person’s
nightmare. Being rich in Vitamin C and anti-oxidants like lycopene, eating ampalaya can
protect your cells from damage and reduce your chances of getting cancer. (Carreos,
2015)
Statement of the problem
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
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This study aims to determine the feasibility of Bitter Gourd to producing nutritious
cupcakes, polvoron and shakes from Ampalaya in terms of the marketing, management,
technical financial and socio-economic aspects of the business.
Specifically, this study seeks to answers the following questions:
1.
What market strategies for the proposed products are to be used in order to meet
customer’s satisfaction in the market?
2.
What management plan can be designed and formulated to attain a successful
operation?
3.
Is the proposed business technically feasible?
4.
How much is the capital needed to put up the business?
5.
What socio-economic contributions and benefits can the proposed business
provide?
7
Scope and Limitation of the Study
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
This study focuses on determining the feasibility of producing Ampalaya (Bitter
Gourd) cupcakes, polvoron and shakes with aspect to, marketing, management, technical,
financial and socio-economic aspects of the business.
The respondents of the study will be the faculty and students of Carlos Hilado
Memorial State College Fortune Towne Campus for academic year 2019 – 2020. Also,
the research only covered on the production of Ampalaya (Bitter Gourd) cupcakes,
polvoron and shake and other problems found on the study will not be discussed. This
study will be conducted in August to November 2019.
8
Significance of the study
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
This study will be significant to the identified individuals and groups below.
Customers. This study give some health benefits because of its best source of
vitamins B1, B2, B3 and C. It also has rich in iron, calcium and full of dietary fiber. This
bitter fruit has magnesium, folate, zinc, manganese and phosphorus.
Academe. This study will serve as an additional reference in the school library.
The findings may help the academe in enhancing, improving and developing the
knowledge of the school community in terms of the proper handling of business.
Proponents. The result of this study will provide insights and understanding to
the proponents on how to apply the strategies, knowledge, and methods gained on the real
business operation.
Government. This proposed study can help to the government buy paying taxes.
Farmers. The proposed study will help the farmers to engage in producing more
vegetables. We are not only selling but also helping the farmers to promote their product.
Future Researchers. In doing this study, the researchers will acquire new skills
and knowledge that they can use in their profession.
9
Definition of terms
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
To establish clear and understanding of the study, the following terms are
arranged alphabetically, in conceptually and operationally defined:
Ampalaya - Conceptually, a tropical annual vine (Momordica charantia) native
to Asia, having yellow flowers and orange, warty fruits that open at maturity to expose
red-coated seeds. (Farlex, 2019)
Operationally, it is the main ingredients for the production of cupcakes, polvoron
and shake.
Customer - Conceptually, an individual or business that purchase another
company’s goods or services (Bloomenthal, 2019)
Operationally, the respondent and one of the beneficiaries of this study.
Demand - Conceptually, is an economic principle referring to a consumer's desire
to purchase goods and services and willingness to pay a price for a specific good or
service. (Chappelow, 2019)
Operationally, refers to customer’s wants to purchase ampalaya delicacies.
Diabetes- Conceptually, is a disease in which your blood glucose or blood sugar
levels are too high in Glucose that comes from the foods you eat.
Operationally, it can lead to a buildup of sugars in the blood, which can increase
the risk of dangerous complications
.
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College of Business Management and Accountancy
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Flour- Conceptually, a powder obtained by grinding grain, typically wheat, and
used to make bread, cakes, and pastry.
Operationally, it will be used to make Ampalaya cupcake and ampalaya polvoron.
Operationally, refers to customer’s wants to purchase ampalaya delicacies.
Marketing- Conceptually, it refers to activities undertaken by a company to
promote the buying and selling of a product or service. (Twin, 2019)
Operationally, this is the activity and processes for creating, communicating,
distributing and exchanging offering that have value for customers.
Pastry- Conceptually, any item of food of which such dough forms an essential
part, as a pie, tart, or napoleon (Collins, 2017)
Operationally refers to the small, baked food that usually sweets and creamy.
Product- Conceptually, it can be service or an item that offered for sale. (Bennett,
2019)
Operationally, this will be cupcakes, polvoron and shake.
Cupcakes- Conceptually, is a small cake designed to serve one person,
which may be baked in a small thin paper or aluminum cup. (Abril, 2014)
Operationally, it refers to the small, well-rounded, cake-type of pastry.
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College of Business Management and Accountancy
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Polvoron- Conceptually, is a Filipino-style shortbread made of toasted flour,
powdered milk, sugar, and butter. Sweet, buttery, and easy to customize with
different flavors. (Manalo, 2019)
Operationally, is a type of heavy and soft and made of flour, sugar and milk.
Shake- Conceptually, a refreshing flavored, organic or fruit frozen drink.
(Heinz, 2019)
Operationally, the only drink in this study that made by the researcher.
Tasty- Involves the communication of sensory concepts which are defined using
standard stimuli. (R. Ishii and M. O'Mahony, 2010)
Operationally, it refers of having a pleasing taste and a good flavor.
Vitamins- Conceptually an organic compound required by an organism as a vital
nutrient in limited amount.
Operationally, it refers to substances that your need to grow and develop normally.
CHAPTER II
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
MARKET STUDY
This chapter present the objectives, methodology, results and discussions, demand
and supply analysis, industry update, competition or competitor’s profile, market
analysis, market strategy, and time table of action plan or marketing activities.
Objectives of the Market Study
The purpose of the study is to determine the acceptability of Ampalaya Delicacies in
different variance that needs to be developed to meet the customer’s satisfactions and
demands.
Specifically, it aims to:
1. To find out the market acceptability of Ampalaya cupcake, ampalaya polvoron and
ampalaya shake in terms of :
a. Quality
b. Price
c. Packaging
d. Branding
2. Determine the present demand and supply of the Ampalaya Delicacies.
3. Identify the possible competitors that are present in the market.
4. Formulate marketing strategies.
13
Methodology of the study
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
It deals with the method of research used in the study, the subject respondent,
locale of the study, data gathering instrument used, the conduct of the study, the procedure
in data analysis and statistical treatment of data.
Results and Discussions of the Study
This study use a researcher-made questionnaire to determine the feasibility of
producing ampalaya cupcakes, ampalaya polvoron and ampalaya shake. The
questionnaire contains information needed in this study filled out by 319 selected
respondents in Carlos Hilado Memorial State College- Fortune Towne Campus.
The self-made questionnaire was divided into three parts. Part 1 pertains to the
respondent’s profile; type of respondents whether they are a student or faculty; their
course and year level. On the other hand, Part 2 pertains to the market acceptability of the
product in terms of the quality, price, packaging and branding. Questions in each part
were answerable by Likert Five Point Scale: (5) Very Highly
Acceptability, (4) Highly Acceptability, (3) Moderately Acceptable, (2) Less Acceptable,
(1) Least Acceptable. Part 3 pertains to the buyer’s preference
SCALE
MEAN RANGE
INTERPRETATION
5
4.21- 5.00
Very high acceptable (VHA)
4
3.41- 4.20
Highly Acceptable (HA)
3
2.61- 4.40
Moderate Acceptable (MA)
2
1.81- 2.60
Low Acceptable (LA)
1
1.00- 1.80
Very low acceptable (VLA)
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BSMA
13%
BSA
12%
BSOA
13%
BSBA
27%
BSIS
19%
BSE
7%
BSACT
9%
Figure 1. Respondents by Course
Figure 1 shows the percentage population of respondents by their courses.
Bachelor of Science in Accounting or BSA consists of 38 students and got 12%. While
Bachelor of Science in Business Administration or BSBA consists of 87 students and got
87%. Bachelor of Science in Accounting Technology or BSACT got 9% consists of 29
students. Whereas, Bachelor of Science in Entrepreneur or BSE got 7% consists of 22
students. For Bachelor of Science in Information Technology or BSIS got 19% consists
of 61 students. While 13% or 41 students are from Bachelor of Science in Office
Administration. And last the Bachelor of Science in Management Accounting or BSMA
got 13% consists of 41 students as well. The total of respondents are 319 students from
Carlos Hilado Memorial State College in different courses.
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Table 1. Market Acceptability of the Ampalaya Delicacies as to Quality Appearance
Indicators
N
Sd
Mean
Interpretation
Ampalaya Cupcake
319
.640
4.44
Very High Acceptable
Ampalaya Polvoron
Ampalaya Shake
319
319
.639
.727
4.48
4.31
Very High Acceptable
Very High Acceptable
Table 1 shows the result of the study in market acceptability of the ampalaya
delicacies as to quality of appearance. As to appearance of ampalaya cupcake, the product
obtain the SD score of .640 with mean score of 4.44 interpreted as Very High Acceptable.
As to appearance of ampalaya polvoron, the product obtain .639 SD score with the mean
score of 4.48 interpreted as Very High Acceptable. Whereas, the ampalaya shake obtain
the SD score of .727 with the mean score of 4.31 interpreted as Very High Acceptable.
There were the result of the data gathered from 319 students from different courses in
Carlos Hilado Memorial State College Fortune Towne Campus.
Table 2. Market Acceptability of the Ampalaya Delicacies as to Quality of taste
Indicators
Ampalaya Cupcake
Ampalaya Polvoron
Ampalaya Shake
N
319
319
319
Sd
.634
.629
.836
Mean
4.49
4.50
4.27
Interpretation
VeryHigh Acceptable
VeryHigh Acceptable
Very High Acceptable
16
Table 2 shows the result of the study in market acceptability of the ampalaya
delicacies as to quality of taste. For ampalaya cupcake, the product obtain the SD score
of .634 with mean score of 4.49 interpreted as Very High Acceptable. As to taste of
ampalaya polvoron, the product obtain .629 SD score with the mean score of 4.50
interpreted as Very High Acceptable. Whereas, ampalaya shake obtain the SD score of
.836 with the mean score of 4.27 interpreted as Very High Acceptable.
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
There were the result of the data gathered from 319 students from different
courses in Carlos Hilado Memorial State College Fortune Towne Campus.
Table 3. Market Acceptability of the Ampalaya Delicacies as to Quality of Smell
Indicators
N
Sd
Mean Interpretation
319
.633 4.47
Very High Acceptable
Ampalaya Cupcake
319
.676 4.47
Very High Acceptable
Ampalaya Polvoron
319
.885 4.18
Highly Acceptable
Ampalaya Shake
Table 3 shows the result of the study in market acceptability of the ampalaya
delicacies as to quality of smell. For ampalaya cupcake, the product obtain the SD score
of .633 with mean score of 4.47 interpreted as Very High Acceptable. As for ampalaya
polvoron, the product obtain .676 SD score with the mean score of 4.47 is interpreted as
Very High Acceptable. Whereas, ampalaya shake obtain the SD score of .885 with the
mean score of 4.18 interpreted as Highly Acceptable. The overall result of the data
gathered from 319 students from different courses in Carlos Hilado Memorial State
College Fortune Towne Campus.
17
Table 4. Market Acceptability of the Ampalaya Delicacies as to Pricing
Indicators
N
Sd
Mean
Interpretation
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Ampalaya Cupcake:
P15 at 35 grams.
Ampalaya Polvoron:P10/15 grams.
Ampalaya Shake:
P25 for 12 oz. and 35 for 16 oz.
Price value of all product
319
.699
4.32
Very High Acceptable
319
.787
4.23
Very High Acceptable
319
.788
4.25
Very High Acceptable
319
.715
4.35
Very High Acceptable
Table 4 indicates that as to price marketability of the products, ampalaya cupcake
for P15 at 35 grams got a SD score of .699 with a mean score of 4.32 is interpreted as
Very High Acceptable. As for ampalaya polvoron for P10 at 15 grams, it obtain SD score
of .788 with mean score of 4.25 is interpreted as Very High Acceptable.
In ampalaya shake for P25 for 12oz. and 35 for 16oz., obtain mean score of 4.25
with SD score of .788 is interpreted as Very High Acceptable. For price value of all
product, it obtain SD score of .715 with mean score of 4.35, interpreted as Very High
Acceptable. The overall result of the data gathered from 319 students form different
course in Carlos Hilado Memorial State College Fortune Campus.
Table 5. Market Acceptability of the Ampalaya Delicacies as to Packaging
Indicators
N
Sd
Mean
Material
components
of
the
319 .773 4.28
packaging
319 .761 4.21
Creativeness of the packaging
319 .819 4.19
Attractiveness of the packaging
319 .797 4.24
Readability of the label
Interpretation
Very High Acceptable
Very High Acceptable
Highly Acceptable
Very High Acceptable
18
Table 5 presents that as to packaging marketability of Ampalaya delicacies, the
material components of the packaging got a SD score of .773 with mean score of 4.28 is
interpreted as Very High Acceptable. Creativeness of the packaging obtain SD score of
.761 with mean score of 4.21 is interpreted as Very High Acceptable. In attractiveness of
the packaging, obtain mean score of 4.19 with SD score of .819 is interpreted as Highly
Acceptable. For readability of the label it obtain SD score of .797 with mean score of
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4.24, interpreted as Very High Acceptable. The overall result of the data gathered from
319 students form different course in Carlos Hilado Memorial State College Fortune
Campus.
Table 6. Market Acceptability of the Ampalaya Delicacies as to Branding
Aspect
N
Sd
Mean Interpretation
319 .756 4.39
Very High Acceptable
Uniqueness of the brand name
319 .751 4.38
Very High Acceptable
Recognition of the brand name
Suitability of the brand name
319
.859
4.35
Very High Acceptable
Table 6 presents that as to branding marketability of Ampalaya delicacies, the
uniqueness of the brand name got a SD score of .756 with mean score of 4.39 is
interpreted as Very High Acceptable. Recognition of the brand name obtain SD score of
.751 with mean score of 4.38 is interpreted as Very High Acceptable. In suitability of the
brand name, got mean score of 4.35 with SD score of .859 is interpreted as Very High
Acceptable. The overall result of the data gathered from 319 students form different
course in Carlos Hilado Memorial State College Fortune Campus.
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College of Business Management and Accountancy
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once a week
32%
once a month
38%
twice a week
20%
10%
never tried to eat
Figure2. How often the Respondents eat Ampalaya
Figure 2 presents how often the respondents eat ampalaya. The result shown
above indicates that out of 319 respondents, 38% or 121 respondents eats ampalaya once
a week, 32% were 102 respondents that eats ampalaya once a month, while 20% were 64
respondents that eats ampalaya twice a week, and the 10% or 32 of respondents have
never tried to eat ampalaya.
55%
45%
Yes
No
Figure 3. No. of respondents who already heard about delicacies made of Ampalaya.
Figure 3 presents the number of respondents who have heard about Ampalaya
delicacies. Based on the result, 55% or 175 of respondents haven't heard yet of delicacies
made of ampalaya, while the 45% or 144 respondents have already heard about ampalaya
delicacies.
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11%
Yes
No
89%
Figure 4. No. of respondents willing to buy Ampalaya Delicacies
Figure 4 shows the number of respondents who are willing to buy Ampalaya
delicacies. The result indicates that out of 319 respondents, 89% or 284 students are
willing to buy delicacies made of ampalaya, while 11% of respondents or 35 students are
not interested.
50 below
8%
32%
22%
51-100
101-150
151-200
38%
200 above
Figure 5. Daily Allowance of Respondents
Figure 5 indicates the gathered range amount of the daily allowances of the
respondents. Survey result shows that out of 319 respondents, 38% or 121 respondents
have the daily allowances range from 51-100 pesos, 32% or 102 respondents have
allowances range 50 pesos and below, 22% or 70 respondents who have allowances range
from 101-150 pesos, and 8% or 26 respondents have allowances range from 151-200
pesos. Based on data gathered, there are no respondents who have allowances range from
200 pesos above.
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College of Business Management and Accountancy
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11%
30 below
45%
24%
31-40
41-50
50 above
20%
Figure 6. The Amount the Respondents usually spent for their snacks
Figure 6 shows the amount of the respondents spent for their snacks, according to
the results presented above 45% or 144 respondents spend 30 pesos and below for their
snacks, 24% or 76 respondents spend 41-50 pesos for their snacks, and 20% or 64
respondents spend 31-40 pesos for snacks, while the remaining 11% or 35 respondents
spend 50 pesos above for their snacks.
7%
P15 per piece
17%
P50 for 4 pcs.
76%
P40 for 3 pcs.
Figure 7.0 Price Preferences of Respondents for Ampalaya Cupcake
Figure 7.0 shows the price preferences of respondents for the ampalaya cupcake.
The results indicates that the 76% or243 respondents would prefer the price of 15 pesos
per piece for ampalaya cupcake, while 17% or 54 respondents would prefer to buy
ampalaya cupcakes at a price of 50 pesos for 4 pieces, and the 7% or 22 respondents
would prefer a price of 40 pesos for 3 pieces of cupcakes.
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21%
2%
P10 per piece
P45 for 5 pcs.
P85 for 10 pcs.
77%
Figure 7.1
Price
Preferences of Respondents for Ampalaya Polvoron
Figure 7.1 shows the price preferences of respondents for the Ampalaya Polvoron.
The results indicates that 77% or 246 respondents would prefer the price of 10 pesos per
piece for ampalaya polvoron, while 21% or 67 respondents would prefer to buy ampalaya
polvoron at a price of 45 pesos for 5 pieces, and the remaining 2% or 6 respondents would
prefer a price of 85 pesos for 10 pieces of polvoron.
2%
16%
P25 for 12oz.
P35 for 16oz.
P50 for 22oz.
82%
Figure 7.2 Price Preferences of Respondents for Ampalaya Shake
Figure 7.2 shows the price preferences of respondents for the Ampalaya
Shake. The result shows that 82% or 262 respondents would prefer to buy a 12oz
ampalaya shake at the price of 25 pesos, while the 16% or 51 respondents would prefer
to buy 16oz ampalaya shake at the price of 35 pesos, and 2% or 6 respondents would
prefer to buy the 22oz ampalaya shake at a price of 50 pesos.
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23
26%
Paper Wrap
74%
Aluminum wrap
Figure 8.0. Packaging Preferences of Respondents for Ampalaya Cupcake
Figure 8.0 shows the packaging preferences of respondents for the Ampalaya
Cupcake. The results above indicates that 74% or 236 respondents would prefer the paper
wrap packaging for the ampalaya cupcakes, while the 26% or 83 respondents would
prefer the aluminum wrap packaging.
40%
Paper Wrap
60%
Cellophane Wrap
Figure 8.1 Packaging Preferences of Respondents for Ampalaya Polvoron
Figure 8.1 shows the packaging preferences of respondents for the Ampalaya
Polvoron. The results above shows that 60% or 191 respondents would prefer the paper
wrap packaging for the ampalaya polvoron, while the 40% or 128 respondents would
prefer the cellphone wrap packaging.
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24
24%
Paper Cup
Personal Tumbler
76%
Figure 8.2. Packaging Preferences of Respondents for Ampalaya Shake
Figure 8.2 shows the packaging preferences of respondents for the Ampalaya
Shake. The results above indicates that 76% or 242 respondents would prefer the paper
cup to be use for the serving of ampalaya shakes, while the 24% or 77 respondents would
prefer to use personal tumbler.
Demand Analysis
The proponent conducted a study of the present demand of Ampalaya Delicacies
based on the population of students in Carlos Hilado Memorial State College Fortune
Campus.
Table 7. Demand of Ampalaya Cupcake
Year
Per piece
Per pack of 4 pcs.
Per pack of 3 pcs.
Annually
Present Demand
35,405
32,120
9,855
77,380
Based on the result of the recent survey, there is a total demand of 77,380 pieces of
ampalaya cupcake annually; seventy-six (76%) of which is demand for the ampalaya
cupcake sold per piece, seventeen (17%) of which is demand for the ampalaya cupcake
sold per pack of 4 pieces and seven (7%) of which is demand for the ampalaya cupcake
sold per pack of 3 pieces.
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Table 8. Projected Demand of Ampalaya Cupcake
Year
Per piece
Per pack of 4 pcs.
Per pack of 3 pcs.
Annually
1
2
3
35,396
42,129
50,141
31,670
37,694
44,863
9,781
11,641
13,855
76,847
91,463
108,860
4
59,678
53,396
16,490
129,565
5
71,029
63,552
19,626
154,208
This demand was projected to increase proportionally with the population of the
students from Carlos Hilado Memorial State College Fortune Towne Campus. Thus, the
proponents used the growth rate 19.02 percent (19.02). Therefore, there is project demand
of 76,847 for the first year of the operation; 91,463 for the second year, 108,860 for the
third year, 129,565 for the fourth year and 154,208 for the fifth year respectively.
Table 9. Demand of Ampalaya Polvoron
Year
Per piece Per pack of 5 pcs.
Present Demand 35,770
9,855
Per pack of 10 pcs. Annually
730
46, 355
Based on the result of the recent survey, there is a total demand of 46,355 pieces of
ampalaya polvoron annually; seventy-seven (77%) of which is demand for the ampalaya
polvoron sold per piece, twenty-one (21%) of which is demand for the ampalaya polvoron
sold per pack of 5 pieces and two (2%) of which is demand for the ampalaya polvoron
sold per pack of 10 pieces.
Table 10. Projected Demand of Ampalaya Polvoron
Year
Per piece
Per pack of 5 pcs. Per pack of 10 pcs.
1
35,862
48,903
9,315
2
42,683
58,204
11,086
3
50,801
69,274
13,195
4
60,464
82,450
15,705
5
71,964
98,132
18,692
Annually
94,079
111,973
133,271
158,619
188,788
This demand was projected to increase proportionally with the population of the
students from Carlos Hilado Memorial State College Fortune Towne Campus. Thus, the
Carlos Hilado Memorial State College
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College of Business Management and Accountancy
26
proponents used the growth rate 19.02 percent (19.02). Therefore, there is project demand
of 94,079 for the first year of the operation; 111,973 for the second year, 133,271 for the
third year, 158,619 for the fourth year and 188,788 for the fifth year respectively.
Table 11. Demand of Ampalaya Shake
Year
12oz.
16oz.
Present Demand
38,325
7,300
22oz.
730
Annually
46,355
Based on the result of the recent survey, there is a total demand of 46,355 ampalaya
shake annually; eighty-two (82%) of which is demand for the ampalaya shake sold for
120z., sixteen (16%) of which is demand for the ampalaya shake sold for 16oz., and two
(2%) of which is demand for the ampalaya shake sold for 22oz.
Table 12. Projected Demand of Ampalaya Shake
Year
12oz.
16oz.
1
38,191
7,452
2
45,455
8,869
3
54,100
10,556
4
64,390
12,564
5
76,637
14,954
22oz.
931
1,109
1,320
1,570
1,869
Annually
46,574
55,432
65,976
78,524
93,459
This demand was projected to increase proportionally with the population of the
students from Carlos Hilado Memorial State College Fortune Towne Campus. Thus, the
proponents used the growth rate 19.02 percent (19.02). Therefore, there is project demand
of 46,574 for the first year of the operation; 55,432 for the second year, 65,976 for the
third year, 78,524 for the fourth year and 93,459 for the fifth year respectively.
27
Supply Analysis
Fresh bitter gourd (amargoso) were harvested by farmers in the half-hectare land
located in the upland area of Salvador Benedicto. As part of SM Foundation Inc.’s (SMFI)
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Kabalikat Sa Kabuhayan (KSK) Farmers’ Training Program on Sustainable Agriculture,
the 50-member Don Salvador Benedicto Agro Forest Farmers Association (DSBAFFA)
were taught various skills and techniques in planting and growing of plants that can
provide them livelihood and food security. In partnership with Harvest Agribusiness
Corporation, Department of Social Welfare and Development, Department of
Agriculture, and the local government, the farmers are hopeful that this project can help
them provide for their daily needs and uplift their economic conditions. For this reason
the researchers agree to use the bitter gourd as the main ingredient in the production of
ampalaya cupcake, ampalaya polvoron and ampalaya shake which is pioneer in Bacolod
City. Unfortunately the product is not yet available in the market of Negros Occidental
only abundant product of cupcake, polvoron and shake in different pastry in Bacolod city
which are also made by vegetables and fruits. The supplier of the Ampalaya was JUNJUN
VEGETABLE MARKET which is located at Brgy. 39, Bacolod City Negros Occidental,
the unit cost of Ampalaya per kilo is 60 pesos and the supplier for other material was kits
store which is a grocery store inside the libertad market.
28
Demand and Supply Analysis
People demand food products to satisfy their needs and wants. The demand for the
products defined the willingness as well as the capability of the consumer to acquire the
food product that they are craving for.
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The demand analysis studied how well the respondents reacted to ampalaya
delicacies, and their degree of willingness to try it. The supply analysis looked into the
current industry to provide the sufficient supply and service to the market.
Based on the results of the survey with the assumption that the sample represents
the population, it is determined that 89 % of the respondents from Carlos Hilado
Memorial State College who are interested in ampalaya delicacies.
Industry update
Bitter gourd was being used in different kinds of cooking despite its unflattering
appearance and bitter flavor, it is most nutritious gourd and has integral uses. In Southeast
Asia bitter gourd is mostly grown for the local market.
Cupcake a delicious treat which has a mild sweetness that can be enjoyed solo by
snack lovers of all ages. Its soft texture and small size make it easy to pack and carry,
allowing people to enjoy the food while they’re on the go.
29
Polvoron we can never loathe the original flavor of polvoron but we cannot deny
that we want something new, something innovative and something that would astonish
our taste buds.
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Shake a blended drink intended to be healthful for one to consume and some are
commercially marketed for the purpose.
Competition or Competitor’s profile
People are very aware when it comes to competition especially in business
competition gives an idea to improve one's business. It is also one factor why researchers
are having a good idea to improve their business. This chapter is designed to assist the
strategist understand how to gather and analyze information about competitors, which is
useful in the strategy understand development process. The ultimate objectives of
competitor profile is to know enough about how competitors think so that the firm’s
competitive strategy can be formulated to take into account the competitors’ likely actions
and responses. From practical viewpoint, a strategist needs to be able to live in the
competitors’ strategic shoes. The strategist needs to be able to understand the situation as
the competitor see it and analyze it to know what actions the competitors would take to
maximize their outcomes to be able to calculate the actual financial and personal
outcomes of the competitor’s strategic choices.
The proponents of this proposed business are quite aware that in order to gain
market relevance in the food industry, they must come up with unique strategies/ideas
that will stand out in the market.
30
In Carlos Hilado Memorial State College Fortune Towne Campus, there are very limited
competitors from this area, only that cafeteria inside this institution which offers variety
of food. They also sell cupcake and polvoron which they get from their supplier.
Carlos Hilado Memorial State College
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Marketing Analysis
Opportunities
Production and Distribution of Ampalaya Delicacies can offer to the consumers a
new kind of cupcake, polvoron and shake which is different from a common cupcake,
polvoron and shake that is usually found in the market. It also attracts the attention of the
consumers because of its uniqueness. Another opportunity of the Ampalaya delicacies is
the affordability of the purchasing power which is cheaper than the other cupcake,
polvoron and shake. Aside from that, Ampalaya delicacies production and distribution
will provide good quality and healthy product at a reasonable price. The uniqueness of
the materials, healthy benefits, and the availability of the raw materials being used can
produce business prospect.
Threats
There were a lot of ways of an inexperienced company to falter in its early business
operation but at any given time, business firms also face a number of common challenges.
The increase of numbers of the competitors is the common threat in every business. The
threat that Ampalaya delicacies may face is the fact that the businesses that has already
existing business producing similar produced and have already marked their named in the
business industry.
31
Another threat is that Ampalaya delicacies would be the competitor that can
produce higher demand of supply than other competitors who are engaged in the same
business.
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Marketing Strategies
Product Strategy
Ampalaya is common known as a bitter fruit. The survey shows that 89% of the
respondents are willing to buy the Ampalaya Delicacies because of its affordability. The
proponent made up a delicacies which the main ingredient is the Ampalaya but despite of
its bitterness they came up a product delicacies that have also a good benefits to the
consumer. There are 3 variety of Ampalaya delicacies: Ampalaya cupcake, Ampalaya
polvoron and Ampalaya shake. The delicacies was using a natural Ampalaya. This
product is made for those people who did not like to eat Ampalaya because of its bitter
taste but want the benefits of the Ampalaya. Even the people who did not eat Ampalaya
they can obtain benefits from these delicacies. In these product the consumer can’t taste
the bitterness.
The packaging was made attractive to catch the attention of the target consumers
but made off of materials that good for environment.
32
Pricing Strategy
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Nowadays, it is hard to find a money and because of the inflation rate the
commodities became expensive. People are very particular in their daily expense on how
they budget their money for their everyday lives.
This product was made affordable in price yet delicious in taste and full of nutritious
benefit of Ampalaya so that anyone can afford to buy and experience its delicious taste.
The pricing strategy used by the proponents is cost base strategy, were in proponent’s
base their price of material used to produce the product.
Table 13. Price of Ampalaya Delicacies according to Price Strategy
Product
Ampalaya Cupcake
Per piece
Per pack of 4pcs.
Ampalaya Polvoron
Per piece
Per pack of 5pcs.
Ampalaya Shake
12oz.
16 oz.
Price
Php. 15.00
Php. 50.00
Php. 10.00
Php. 45.00
Php. 25.00
Php. 35.00
Place
Ampalaya delicacies is a business that located in Carlos Hilado Memorial State
College Fortune Towne Campus. The production of the said product was made at the food
stand in CHMSC-FT. They are open every Monday-Friday.
33
Promotion Strategy
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Market strategy is needed to gain and attract more customers. Promoting the
product is one of the best way to be known in the public and there’s a lot of ways to
promote the product. The business shall start promoting by using the most basic
promotional tools which are the flyers, free taste and word of mouth marketing. Flyers
will be used to serve information guide and benefits of these delicacies. A free taste will
also be given in order for the customer to determine the taste of Ampalaya Delicacies.
Lastly, word of mouth is an effective and priceless promotion. The more popularity of
your product in the market the more chances that people will patronize the product.
The business offers a value pack for those who don’t have enough money to spend,
where customers can save. And for more information just visit our Facebook page
gourdusefoodstall@email.com
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CHAPTER III
TECHNICAL STUDY
This chapter discusses the technical aspect of the business. The objectives of the
technical, product description, production process, production flow and operational flow
that shows production and business operation schedule. It also present the project site,
site development plan. It also shows the legal requirements and the cost, the machineries
and equipment, utilities, raw materials, man power requirements and waste disposal
method.
Objectives of the Technical Study
This study aims to determine the technical aspect of the business. Specifically it
determines the following:
1. The product description and the process in production of Ampalaya Delicacies;
2. The production, business operation schedule and operational flow adopted or must be
conducted;
3. Project site, site development plan and the manpower requirements.
4. Machineries and equipment, utilities and raw materials used by the business; and
5. Waste disposal method used.
35
Process flow
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Demonstrated below are the processes in cleaning, slicing, shredding, soaking and
draining the ampalaya for Ampalaya Cupcake.
Step 1:
e ½ kilo of Ampalaya.
Step 2:
Wash the Ampalaya with clean water.
Step 4:
Use scraper to mince it
Step 5: Deep the Ampalaya in water with salt.
Step 3:
Cut the Ampalaya vertically
Into two halves and remove the
seed.
Step 6:
Remove the excess water by putting it in
a bowl with tissue. In just 2 minutes
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Product Description
Ampalaya cupcake, polvoron and shake are the kind of dessert that offers like
pastry shops. The color of the ampalaya cupcake is brownish like a normal bread but our
cupcake has a color green spots which is the ampalaya. The polvoron has a light brown
color and the shake has a sage green color which intend to provide unique face in the
category of desserts in the pastries that customer will encourage to buy. Ampalaya has an
oblong shape and its skin is smooth. This fruit is a best source of vitamins B1, B2, B3
and C. It also rich in iron, calcium and full of dietary fiber. This bitter fruit has
magnesium, folate, zinc, manganese and phosphorus. It contains three active substances
with anti-diabetic properties, including charantin which has been confirmed to have a
blood glucose-lowering effect, vaccine and an insulin-lie compound known as glucose.
(Brewster, 2018)
Ampalaya Cupcake ingredient for 100 pcs.
½ kilo of ampalaya
1 butter
1 kilo of cake flour
440g Eden cheese
5pcs egg
2 tbs. of vanilla extract
3 tbs. of baking powder
1 cup of vegetable oil
2 evaporated milk
½ kilo of refine sugar
2 cup of condense milk
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Production Flow
Ampalaya cupcake is easy to make. Following the process correctly can produce
the best Ampalaya Cupcake that can give satisfaction to the nutritional needs of the
consumer. With this ingredients, researchers came up with the product that can satisfy the
taste and health benefits of the customers.
Presented below is the process in making the Ampalaya cupcake:
Step 1: Mix the 10 cups of
flour, ½ cup of baking
powder, and 2 tablespoons
of baking soda in a large
bowl.
.
Step 2: Beat the 8 eggs and mix
with ½ cups of sugar and 3 cut
cubes of butter and 2tbs of vanilla
extract and mix together. Then,
add the 2 cans have condense and
evaporated milk.
Step 3: Mix the 2 large bowl
that you made in step 1 and 2.
Step 4: Mix it well until it
become creamy. Then;
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Step 5: Add the minced
ampalaya and mix it well.
Step 6: Transfer it to the
prepared cupcake molders
Step 7: And bake it in
the oven in 3-5 minutes.
At 45 degree heat
Step 8: Your delicious
Ampalaya Cupcake are
ready to serve!
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College of Business Management and Accountancy
39
AMPALAYA SHAKE INGREDIENTS
FOR 12OZ, 16OZ AND 22OZ
Evaporated milk (1 cup for 12oz, 1 ½ cups for 16oz and 2 cups for 22oz.)
Sugar (1 cup for 12oz, 1 ½ cups for 16oz and 2 cups for 22oz.)
Ampalaya ½ kilo (1 cup for 12oz, 1 ½ cups for 16oz and 2 cups for 22oz.)
Water (1 cup for 12oz, 1 ½ cups for 16oz and 2 cups for 22oz)
Banana (1pc. for 12oz, 1 ½.pcs for 16oz and 2 pcs. for 22oZ)
Production Flow
Presented below is the process or steps in making the Ampalaya shake:
Step 1: Blend well the sliced
Ampalaya until it become juicy
Step 2: Slice the
banana.
Step 3: Add the
banana that you slice in
blender.
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Step 4: Gradually add the
milk for 1 cup for 12oz; 1 ½
cups for 16oz; and 2 cups
for 22oz.
Step 5: Add some water, 1
cup for 12oz, 1 ½ cups for
16oz and 2 cups for 22oz.)
Step 6: Put some ice cubes.
Step 7: Blend it well.
Step 8: Serve your
delicious and nutritious
Amplaya Shake.
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41
AMPALAYA POLVORON INGREDIENTS
FOR 200 PCS
Flour 4 cups
Sugar 3 cups
Powdered milk 3 cups
Ampalaya ½ kilo
Butter 4 cubes
Production flow
Presented below is the process or steps in making the Ampalaya shake:
Step 1: Mix the 3 cups of
sugar and 3 cups of
powdered milk in a large
bowl.
Step 2: Cook the flour to the
frying pan without oil when
it became brownish it’s
already cooked.
Step 3: Melt the butter on the
pre heat frying pan when the
butter get melted transfer it into
the small bowl and set aside.
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Step 4: Mix the milk and
sugar than you made in step 1
to flour that you cooked in
step 2.
Step 5: Mix the melted
batter to the pre-mix flour
sugar and milk. And put
½ cup of minced ampalaya
Step 6: Transfer the mixture
to the clean bowl and wait
until it warm down
Step 7: After a few minutes, your
delicious Ampalaya polvoron are
ready to serve!
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Table 14.0 Five Years Projected Product for Ampalaya Cupcakes
Year
1
2
3
4
5
Projected product(X)projected increase in population
Total
120,000 X 1.10
132,000 X 1.10
145,200X 1.10
159,720X 1.10
120,000
132,000
145,200
159,720
175,692
505,812
Total product
On the first year of operation, the projected is 120,000 pieces: 132,000 for the
second year; 145,200 for the third year; 159,720 and 175,692for the fourth and the fifth
year respectably and for the total projected product is 505,812 pieces.
Table 14.1 Five Years Projected Product for Ampalaya Shake
Year
Projected product(X)projected increase in population
1
130,000 X 1.10
2
143,000 X 1,10
3
157,300 X 1.10
4
173,030 X 1.10
5
Total product
Total
130,000
143,000
156,300
173,030
190,333
792,663
On the first year of operation, the projected is 130,000 order: 143,000 for the
second year; 156,300 for the third year; 173,030 and 248, 832 for the fourth and the fifth
year respectively and for the total projected for ampalaya shake product is 737,992 order.
Table 14.2 Five Years Projected Product for Ampalaya Polvoron
Year
Projected product(X)projected increase in population
1
2
200,000 X 1.10
3
220,000 X 1,10
4
242,000 X 1.10
5
266,200X 1.10
Total product
Total
200,000
220,000
242,000
266,200
292,820
1,023,020
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On the first year of operation, the projected is 200,000 order: 220,000 for the
second year; 242,000for the third year; 266,200 and 292,820 for the fourth and the fifth
year respectively and for the total projected for ampalaya shake product is 1,023,020
order.
Table. 15The Production and Business Operation Schedule
Time
Time
Activities
Personness responsible
duration
Store
Opening,
30 minutes All Employees
7:00-7:30 AM
Time-In
Preparing the Raw
Materials
and 30 minutes Production Crew
7:30-8:00AM
Utilities
8:30-9:00AM
9:00AM-12:00PM
12:00 PM
1:00-5:00 PM
5:30-6:00 PM
Slicing, soaking in
water with salt and
30 minutes
draining
the
ampalaya.
Start of Production
Process
and
3 hours
Package by variety
per order
Lunch Break
1 hour
Production Crew
Production Crew
All Employees
Continuation
of
Production Process 4 hours and
Production Crew
and Package by 30 minutes
variety per order
Cleaning Prescribed
Are and Waste 30 minutes All Employees
Disposal
6:30-7:00 PM
Store Closing
30 minutes
7:30PM
Inventory of the
----------sale for the day
All Employees
Owner
44
Carlos Hilado Memorial State College
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College of Business Management and Accountancy
Project Site
The proposed project is located inside the CHMSC- fortune town. The proponents
rent a space for production and services of the business. The space is vacant and ready
for occupancy, rented for Php 1,800 per month not including the electricity and water
bills. The proponents will renovate and improved the area to be more accessible,
presentable and organized for the fast growing of the business which is Ampalaya
delicacies.
TERMS AND CONDITION:
1. The lessee agrees to rent the space for business purposes.
2. The lessee must pay monthly.
3. Monthly rental is One Thousand Eight Hundred Pesos (Php. 1,800.00) per month not
included of water bills and electricity.
4. Payment should be made every end of the month.
5. The lessee must take good care of said properties and unit.
45
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Table 16 Cost and Enhancement
Description of materials
Hardi flex
Concrete nails
Ceiling receptacle
Outlet
Light bulb
Single switch
Double switch
Total material cost
Labor cost
Estimated total direct cost
46
Quantity
2pcs
1 ½ kilo
4pcs
4pcs
4pcs
4pcs
4pcs
Unit cost(PHP)
1,354.00
30.00
25.00
80.00
Total cost (PHP.)
2,708.00
45.00
100.00
320.00
30.00
75.00
120.00
300.00
P4,393.00
P2,500.00
P6,893.00
Legal requirements
In business there should be a legal requirements that should be complied before
the operation start legally. This is based on the information given by the City office.
Legal forms and other pertinent documents can be affixed and seen in the appendix.
Table 17Cost of legal requirement
License/Permits
Business permit
Mayor’s permit
Sanitary permit
DTI
 Registration fee
 Documentary stamp
BIR
 Registration fee
 Documentary stamp
Total Organizational Fee
Cost
Php. 500.00
260.00
200.00
500.00
20.00
500.00
20.00
Php 2,000.00
Table 17 reflects the cost of license and permits of the business. The payment for
business permit, mayor’s permit and sanitary permit is amounted to Php. 500.00, Php.
260.00 and Php. 200.00 respectively. For the registration fee in Department of Trade and
Industry (DTI) and Bureau of Internal Revenue (BIR) is amounted to Php 500.00 with a
Php. 20.00 documentary stamp each. The overall cost for the licenses and permit is Php.
2,000.00.
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
47
Table 18. List of raw materials producing the Ampalaya cupcakes (100 pcs.)
Item and Picture
Total Cost
(Php)
Source
Quantity
Unit Cost
Libertad Market
2
15.00
Libertad Market
1 ½ kilo
30.00
45.00
Libertad Market
5 pcs.
7.00
35.00
Libertad Market
½ kilo
54.00
27.00
Libertad Market
1 can
26.00
26.00
Libertad Market
1 cup
15.00
15.00
Libertad Market
½ of
slice
48.00
24.00
Libertad Market
1 pc.
65
65.00
Libertad Market
3table
spoon
5
15
Libertad Market
1cup
14.00
14.00
Libertad Market
1 can
32
32.00
30.00
Ampalaya
Backing Flour
Egg
Refine Sugar
Evaporated milk
Baking powder
Butter
Cheese
Vanilla
Oil
Condense milk
Total
P328.00
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Table 19. List of raw materials producing the Ampalaya shake 100pcs. 12oz cup.
Item and Picture
Source
Quantity in
one day
Unit Cost
Total Annual
Cost (Php)
Libertad
Market
10 pcs.
15.00
150.00
Libertad
Market
3 bunch
10.00
30.00
Libertad
Market
5 cans
26.00
130.00
Libertad
Market
2 kilos
60.00
120.00
Ampalaya
Banana
Evaporated milk
Refine sugar
Total
P430.00
Table 20. List of raw materials producing the Ampalaya polvoron.
Quantity for
Unit
Item and Picture
Source
100 pcs
Cost
Total Annual
Cost (Php)
Libertad Market
2
30.00
30.00
Libertad Market
½
48.00
24.00
Libertad Market
½
54.00
27.00
Libertad Market
1 kilo
30.00
30.00
Libertad Market
160 grams
45.00
45.00
Ampalaya
Butter
Sugar
Flour
Powdered Milk
Total
P156.00
48
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
49
Table 21 List of Product Equipment
Item and picture
Chopping Board
Spoon
Knife
Fry Pan
Sources
Quantity
Unit Cost
Total Cost
Unitop
1 pc.
65.00
65.00
Unitop
1pack
55.00
55.00
Unitop
2 pcs.
60.00
120.00
Unitop
1 pc.
186.00
186.00
Unitop
1pc.
749.00
749.00
Unitop
1pc.
49.55
49.55
Unitop
1pc.
30.00
30.00
80.00
80.00
1 pc.
2,700.00
2,700.00
1pc.
59.75
59.75
3pc.
. 25.50
76.5
Blender
Spatula
Strainer
Unitop
Mixer
Oven
Unitop
Unitop
Mixing bowl
Unitop
1pc.
Polvoron Molder
Total
Table 22. List of direct material
Item and picture
Source
Php 4,170.80
50
Quantity
Unit cost
Total Cost
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Portia
10
Packs
20.00
200.00
Portia
5 packs
35.00
175.00
Portia
5 packs
20.00
100.00
16 oz. Paper Cups
Portia
5 packs
30.00
150.00
22 oz. Paper Cups
Portia
5 packs
45.00
225.00
Portia
100 pcs.
200.00
200.00
Portia
20
6.00
120.00
Cellophane Paper
Paper Straw
12 oz. Paper Cups
Paper Molder
Paper Bag
Total
Php, 1,170.00
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Table 23. Stall supplies
Item and picture
51
Sources
Quantity
Unit Cost
Total Cost Php
Unitop
3pcs.
4.00
12.00
File folder
Unitop
5pcs.
5.00
25.00
Journal/ columnar
New
ChinaMart
22.00
22.00
Record Book
Gaisano
1pc.
54.00
54.00
Short – 125.00
Long – 150.00
H Ballpen
1pc.
Bond Paper Long
and Short
Gaisano
1pc.
Short –
125.00
Long –
150.00
Cash Voucher
Unitop
1pc.
8.00
8.00
Paper Clips
Unitop
1pc.
15.00
15.00
Time Card
Daniel
merchandisin
g
6pcs.
48.00
288.00
Mongol Pencil
Unitop
1pc.
6.00
6.00
Stapler Wire
Total
Unitop
1pc.
10.75
11.00
Php 716.00
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
52
Table 24. List of stall equipment
Item and picture
Source
Quantity
Unit cost
Total Cost
Php
NOVO
1pc.
. 120.00
120.00
Unitop
1pc.
115.00
115.00
NOVO
1pc.
175.00
175.00
Lopues San
Sbeastian
1pc.
1,300.00
1,300.00
Novo
1pc.
72.00
72.00
Unitop
1pc.
35.00
35.00
Expressions
1pc.
150.00
150.00
Rubber Mat
Cotton Mop
Wall Clock
Asahi Stand Fan
Stapler
Office Scissors
Calculator
Total
Php.1,967.00
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Table 25. List of stall Furniture’s and fixtures
Item and picture
Source Quantity
53
Unit cost
Total annual cost
Unitop
1
1,099.00
1,099.00
Unitop
2
149.00
298.00
Unitop
1
798.00
798.00
Cabinet
Monobloc Chair
Table
Total
PHP.2,195.00
Table 26. List of Miscellaneous items
Item and picture
Source
Quantity
Unit cost
(php)
Total annual
cost (php)
Unitop
6
150.00
900.00
Save more
6
55.00
330.00
Unitop
3
85.00
255.00
Unitop
20
10.00
200.00
Unitop
6
10.00
60.00
Hand soap
Dishwashing liquid
Apron
Dishwashing
sponge
Hair net
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
54
Unitop
1
125.00
125.00
Unitop
1
89.00
89.00
Unitop
1
99.00
99.00
Dust pan
Brush
Trash Bin
Total
P2,058.00
Table 27. Cost of promotion activities advertisement
Activities
Total Cost (PHP)
Feasibility cost
2,000.00
Total
P2,000.00
UTILITIES
Table 28. Equipment requirement electricity
QTY
Electric
Equipment
Kwh
Consumption
Estimated
Hours of
Consumption
Per Day
Days of
Operation
Per
Month
Rate Per
Hour
Total
Rate Per
MONTH
Total
Consumption
Per month
1
Stand Fan
130watts
8hrs
22
6.6550
176
152.2664
4
Light Bulb
10watts
8hrs
22
6.6550
176
46.8512
1
Oven
145watts
8hrs
22
6.6550
176
169.8356
1
Blender
65watts
8hrs
22
6.6550
176
76.1332
1
Refrigerator
215watts
8hrs
22
6.6550
176
251.8252
Total
P696.92
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Waste and Waste Disposal
Ampalaya bread and pastries will not just built and established a business for the
welfare and for the owner himself but also for the environment as a whole. The production
of ampalaya bread and pastry itself practiced the “3R’s” which is (reduce, recycle and
reuse). In recycling waste the cans of the condense and evaporated milk can be sold to
the junkshop, and the plastic bottle can be reused by refilling like cooking oil and the
paper cups will be disposed properly . It does not give off pollution to the surroundings
since the business will be practicing the right way of disposal methods specifically
Reusing, Reducing and Recycling and all waste will be disposed accordingly.
55
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
CHAPTER IV
MANAGEMENT STUDY
This chapter presents the Company’s Vision, Mission, Goals and Objectives.
Also includes what form of business organization will be used, the illustration of
organization chart, assignment of duties and responsibilities of the respective personnel
and their qualifications. The management policies, rules and regulations and management
control system are also presented in this chapter.
Company Vision
To be the leading producer and distributor of Ampalaya Delicacies in Bacolod
City.
Company Mission
The business is committed to provide nutritious pastries product at affordable
price that could surely satisfy every consumer’s taste preference.
Business Goals
1. To ensure the nutritional value and high quality of Ampalaya Delicacies at
affordable price;
2. To expand the production not only in Bacolod City but as well as the neighboring
towns, cities and provinces all over the Philippines;
3. To gain higher return of investment; and,
4. To be the best in the eye of the customers and employees.
57
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Business Objectives
1. Increase sales annually by 10%;
2. Increase customer’s satisfaction through on-time delivery;
3. Identify quality measures that will minimize defects for the year;
4. Improve capacity by adding a product line to respond more quickly to customer
demands; and,
5. Improve productivity continuously for the next five (5) years.
Forms of Business Organization
Production of Ampalaya cupcake, polvoron and shake will be a sole proprietorship to be
owned by Ms. Ericka Rose Cabatas. Since she has an experience about pastry shops business,
there is a passion in her part in terms of baking and making desserts. The prospective owner
is very particular of the dessert she provides to her family and friends specifically in
cupcakes, polvorons, and shakes.
The proponents have chosen this type of business because it suits to an individual
who is venture to put-up business. The operation of the business will be directed to the owner
who will also be the manager. This is also a limited exposure to liability. The business can
contribute to the sustainability of the environment and help for the health of the people.
58
Owner
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Book keeper
Cashier
Crew 2
Crew 1
Crew 2
Crew 2
Crew 2
Figure 9 Organizational Structure
Crew 2
Organizational structure is typically the hierarchal arrangement of line of authority,
communication rights and duties of an organization. It is also determine how roles, powers
and responsibilities are assigned, controlled and coordinated, and how the information flow
from different level of managements. (Dictionary, 2019)
In this part, it shows the flow of approach from top-to-bottom. It will be composed
of one manager, who is also the book keeper, cashier and also the owner, under the manager
there are two department which is the production department and the marketing
department, below the production department they are the bakers and helpers and for the
marketing department they have the driver or distributors and also the helper. This
organizational structureit functions equally.
Manpower Requirements
59
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
The owner will be the manager, book keeper and cashier himself of the
Ampalaya delicacies who will lead or manage the whole business and transaction. The
management will hire 2 crew, one for the production that will be responsible for making
the cupcake, polvoron and shake and maintaining their quality. The other one for
packaging and serving to the customer. The salaries will be on a mandatory basis,
excluding the crew 1 and crew 2 whose salary will be on a daily basis as provided by the
Department of labor and employment.
Employees must have a good records, physically fit, honest, hardworking and
efficient in doing the job.
60
Table 29 Job Description and Specification
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Position
Manager/
owner
Cashier
Book keeper
Crew 1
Crew 1
Job description
Responsible for implementing
policies and procedures. Makes
the schedule and the activities for
the business and in-charge of the
day to day production and
operation of the business
Receive the payment of the
customer and efficiently operates
the cash register. Ensure that
there is sufficient cash in the cash
drawer. Sort, count and wrap
coins
and
currency.
Communicate the company
policies and procedures to the
customers.
In-charge of the filing all the
documents of the business.
Secure
the
files
record
transaction and checks the
finances used by the business.
Responsible
for
providing
financial position for the
business.
In-charge of the processing of the
food.
Job specification
Male or female at least 23 year old
and above. Must be a graduate of
any business related courses. Has
an experience on related business
and undergo training of a
particular business position.
Male or female at least 18 year old
and above, high school graduate,
college undergraduate or college
graduate of any courses.
Experience is an advantage.
Male or female at least 23 year old
and above. Must be a graduate of
any accounting related courses and
a licensed of the said profession.
Experience is an advantage.
Male or female at least 18 year old
and above, high school graduate,
college undergraduate or college
graduate of any courses.
Experience is an advantage.
Primarily responsible in doing Male or female at least 18 year old
the operation and maintenance of and above, high school graduate,
the production site. Also in college undergraduate or college
working the production.
graduate of any courses.
Experience is an advantage.
Willing to be trained.
Table 30 Man Power Requirements with Compensation Scheme
Position
No. of
Daily
Monthly
Employee
Salary
Salary
61
Annual Salary
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Manager/ OWNER/
1
-----------
-------------
---------
CREW I
1
365.00
8,030.00
80,300.00
CREW 2
1
365.00
8,030.00
80,300.00
CASHIER AND BOOK
KEEPER
Total
P160,600
Table 31 Mandatory Benefits
Benefits
Employer
Contribution
Employee
Contribution
Total Monthly
Contribution
Total Yearly
Contribution
SSS
(Php525.70)
(Php254.30)
(Php780.00)
(Php9,360.00)
Phil Health
(Php100.00)
(Php100.00)
(Php200.00)
(Php1,800.00)
Pag-IBIG
(Php100.00)
(Php50.00)
(Php150.00)
(Php1,800.00)
Total
(Php725.70)
(Php404.30)
(Php1,130.00)
(Php12,960.00)
MANAGEMENT POLICIES, RULES AND REGULATIONS
62
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Scope of Policy
The term policy shall be observed by this study in terms of store, employees,
production and food stall.
Objectives
To establish a standard set of rules and regulations of the store, employees,
management and production. Policies will be followed and adopted by the employees.
Such each rules and regulations shall set a standard code of conduct.
Period of Operation
This policy in respect of conduct, store, employees, office, management,
production and distribution, the rules and regulations shall remain in force until amended
and approved by the management.
Intent of Policy
The purpose of this policy is to establish a uniform and standard procedure for the
management of store, employees and production code of conduct.
Code of Conduct (Rules and Regulations)
63
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
In Terms Of Store:
1. The store will be opened at 7:00am to 6:00pm from Monday to Friday.
2. The store should be organized and maintain the cleanliness all the time.
3. The equipment must use with care.
4. The store should observed proper segregation of waste.
In Terms Of Employees:
1. Employees must report on time on their assigned schedule.
2. Employees who will be late or absent from work must inform at least 3hours prior
to normal starting time.
3. No employees shall be under the influence or using alcoholic beverages during
the work hours.
4. Employees should wear their proper uniform.
5. Employees should look neat and presentable all the time.
6. Employees who will be caught stealing and destroying company's image and
properties is ground for termination.
7. Employees are not allowed to use cellphone and other gadgets during working
hours.
In Terms Of Management:
1. The management must be accurate in giving salary during 15th and end of the
month.
2. The management implement a policy to be followed by the employees to lead in
a growing company.
64
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
3. The management will not tolerate and give sanction for those who destroyed
company's image and properties.
4. The management must implement a guidelines for employees in doing the
standard operation of the business.
In Terms Of Production:
1. Proper sanitary procedure during preparation must be observed and maintained.
2. The product must maintain its best of taste.
3. The product must be consumed before it lapse.
4. The product must use natural ingredients and not the artificial.
5. In packing, the product must handle with care to maintain its output.
In Terms Of Absence
1. Implement the “no work no pay policy”.
2. The employee should inform the manager the day before he/she plan to absent.
3. Being absent for 3 days without notice would mean a warning for the job.
4. Absence for work should have a valid reason.
In Terms Of Sick Leave
1. Sick leave must be verified and authenticated by a medical certificate.
2. The company allow 10 days for sick leave including Sundays and holidays but it
is subject to charge depending on the sickness.
In Terms Of Benefits
65
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
1. SSS and Phil health will be available by the employee for medical, emergency
cases and security of their health.
Management Control System
The business will start from 7:00 am and end the day on 7:30 pm Mondays to
Fridays and we are open half day for Saturday. Attendance of all employee will be
monitored strictly through the use of logbook. Employees must write their full name,
position, signature, and time in and time out in the logbook which will be checked
regularly to ensure its commitments and responsibility. All sales must be recorded in the
logbook.
In terms of expenses every transaction should be recorded with supporting
documents to avoid errors, missing statements and omission of financial reports.
The company polices, rules and regulation should be observed by all employee
strictly. There will be corresponding penalties if it is violated like 1st offense: Verbal
reprimand, 2nd offense: Written reprimand, 3rd offense: Counselling, 4th offense:
Suspension, 5th offense: Termination/Dismissal.
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
CHAPTER V
FINANCIAL STUDY
This chapter reflects the total project cost of the business, sources of financing,
financial assumptions, and other capital requirements that were significant in the
construction of the initial and financial investment, notes and schedules, and finally, the
conveying financial analysis.
Objectives of the Study
This study aims to determine the financial status of Ampalaya Delicacies.
Specifically, it seeks to answer the following objectives:
1. To determine the source of financing of the business;
2. To evaluate the company’s profit by its financial statements; and
3. To evaluate and analyze the different ratios such as ratio analysis, investment
analysis and break-even point analysis.
67
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Source of Financing
The business will be solely finance by Ms Cabatas, working as accountant at the
private finance corporation, and relative of one of the proponents. To know the
capacity of the owner to finance the business, the proponents gathered all the
necessary information and as a result, Ms Cabatas can finance and provide the
needed fund. Here are the list of financial capability and properties:
91
1. Resident of Villa Magdalena, Mansilingan, Bacolod City.
2. Owned a (4) hectare land in Cebu City. That land is used in agriculture.
3. Owned a 200 square meter lot in Villa Magdalena, Mansilingan, Bacolod
City.
4. Acquired house and lot in San Sebastian, Libertad, Bacolod City.
5. Owned 2 vehicles.
68
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
Pre-operating Cost
Organizational Cost
2,040
Total Pre-operating Cost
2,040
Machinery & Equipment
2,040
Office Supplies
1,080
Leasehold Improvements
6,980
Total Capital Expenditures
10,100
Initial Working Capital
Manufacturing Cost
75,750
Operating Expenses
2,000
Total Initial Working Capital
77,750
Total Project Cost
P 89,890
Financial Assumptions
1. Sales increase by 10% per annum.
2. Increase in sales price for each product is P2.00 per year
3. Promotion are done only on the first year of operation
4. Desired ending inventory is equal to 10% of the current year’s unit sold
5. PPE are depreciated in 5 years
6. Straight line deprecation is used
7. Rent expense, miscellaneous expense and Utilities expense increase by 10% per
year.
8. Packaging supplies and Office supplies increase by 10% annually
9. Office supplies are replenished semi-annually and purchased every beginning of
the semester.
10. Rent is P 1,800.00 per month
11. Employees will have 5 ½ working days per week
69
Carlos Hilado Memorial State College
Alijis Campus | Binalbagan Campus | Fortune Towne Campus | Talisay Campus
College of Business Management and Accountancy
12. Employees are paid with daily rate of P365.
13. The employee’s monthly benefit contributions will be remitted not later than the
10th day of the succeeding month
14. Annual salaries includes 13th month pay which is prorated for 10 months.
15. Percentage tax rate used is 3% of gross sales
16. The leasehold improvement on the beginning of operation is P6,093.00
17. The months of operation per year is equal to 10 months which is equal to two
semesters
18. Owner’s initial capital is P200,000.00
19. Owner withdraws 50% of the net income every end of the operating year.