The Matcha Collective: A Feasibility Study
A Project Paper
Presented to
The Senior High School Department
Accountancy, Business, and Management Strand
Bacolod Trinity Christian School
In Partial Fulfillment
Of the Requirements in the Subject
Business Enterprise Stimulation
Submitted By:
Bacomo, Zen Abe M.
Debulgado, Rymer Jason O.
Sevillano, Kylene Kate C.
Verde, Crisha P.
April 16, 2021
APPROVAL SHEET
This paper entitled THE MATCHA COLLECTIVE: A FEASIBILITY STUDY is
prepared by ZEN ABE M. BACOMO, RYMER JASON O. DEBULGADO, KYLENE
KATE C. SEVILLANO and CRISHA P. VERDE, in partial fulfillment of the
requirements for the subject Inquiries, Investigations, and Immersion has been reviewed
and approved by the Panel of Evaluators.
PANEL OF EVALUATORS
Joy P. Nemenzo
Lovely Joy J. Aguilar, MBA
Member
Member
Jet Siegbert A. Oregano, MBA
Adviser
Esther Jane Y. Uy, MA Economics, MA Education Ministries, CPA
Principal, Trinity Christian School
April 16, 2021
ACKNOWLEDGEMENT
First of all, we praise the Lord from whom all these blessings flow who gave us the
strength, wisdom, knowledge, and the passion to accomplish and conquer every difficulties and
challenges while working on this feasibility study. Without Him, all of these are impossible —
Glory be to the Father.
We would also like to express our deep and sincere gratitude to our Feasibility Study
adviser, Sir Jet Siegbert A. Oregano for his patience and commitment in teaching, his assistance,
and ceaseless guidance and encouragement to the group. We also thank and appreciate Principal
Esther Jane Uy and Sir Charles Aguirre for imparting their knowledge that allows us to
understand the lessons and put it into practical application. These people significantly helped us
in finishing our paper.
Deepest gratitude to our loving parents, we can vividly feel your unfailing support by the
means of financial provisions, prayer, understanding, and the time you spent to take us to school
amidst this pandemic. Without you, we wouldn’t be here achieving our goals in life as we are
making our way to college.
We also gratefully acknowledge the school library for allowing us to use their computer
laboratory and access the internet that was crucial in finishing our work. We also appreciate our
fellow researchers, the Happimiru group for their willingness to help and constant
encouragement. Your little act of kindness means a lot as it makes us feel motivated.
And to everyone who has been used as an instrument in the successful completion of this
feasibility study, it is difficult to find adequate words to convey how much we thank you.
TO GOD BE THE GLORY!
-
The Entrepreneurs
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Table of Contents
Acknowledgement ……………………………………………………………...…………...….... i
Table of Contents ……………………………………………………………...………….…...… ii
List of Tables and Figures ……………………………...………………………...…………....… v
Logo ……………………………………...…………………………………………………....... vi
Executive Summary ………………………………………………….…………………...…..... 1
Brief Description of the Project…………………………………………...…….….......... 1
Brief Profile of the Entrepreneur……………………………………………….…........... 1
Project’s Contributions to the Economy………………………….………………............ 2
Section 1. Marketing Plan……………………………………………………...……….…........ 4
1.1 Description of the Product………………………………………...………….……… 4
1.2 Comparison of the Product with Its Competitors……….………………….………... 6
1.3 Location…………………………………………….……………………...……….... 7
1.4 Store Layout………………………………………………………………………….. 8
1.5 Market Area………………………....………………………………………....…….. 9
1.6 Main Customers…………………………………………………………………….. 10
1.7 Total Demand………………………………………………………………....…..… 10
1.8 Selling Price…………………………………………………......…………….….... 21
1.9 Price Elasticity of Demand…………………………………………………………. 21
1.10 Sales Forecast……………………………………………………………............... 23
1.11 Promotional Measures………………………………………………….………….. 23
1.12 Marketing Strategy…………………………………………………….…………... 24
1.13 Marketing Budget…………………………………………………………………. 26
1.14 Analysis Tool……………………………………………………………………….26
1.14.1 SWOT Analysis...……………………………………………………….. 26
1.14.2 PESTLE Analysis.………………………………………………………. 30
1.14.3 Porter’s Five Analysis…………………………………………………… 33
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Section 2. Production Plan………………………………………………………………......... 36
2.1 Operation Process……………………………………………………………...…… 36
2.2 Critical Tasks and Phases……………………………………………………....…… 37
2.3 Gantt Chart……………………………………………………………………..…… 38
2.4 Operating Hours………………………………………………………………..…… 38
2.5 Fixed Capital……………………………………………………………………...… 38
2.6 Life of Fixed Capital…………………………………………………………...…… 39
2.7 Maintenance and Repairs……………………………………………………....…… 39
2.8 Sources of Equipment…………………………………………………………….… 40
2.9 Planned Capacity……..…………………………………………………………..… 40
2.10 Future Capacity………………………………………………………………….… 41
2.11 Terms and Conditions of Purchase of Equipment……………………………….… 41
2.12 Raw Materials & Cost of Raw Materials………………………………………..… 42
2.13 Raw Materials Availability………………………………………………………... 43
2.14 Storage and Supplies…………………………………………………………….… 43
2.15 Labor and Cost of Labour……………………………………………………….… 44
2.16 Overhead Expenses……………………………………………………………...… 44
2.17 Pre-operating Expenses…………...……………………………………………..… 44
Section 3. Organization and Management…………………………………………………... 46
3.1 Form of Business…………………………………………………………………… 46
3.2 Organizational Structure……………………………………………………………. 46
3.3 Business Experience and Qualifications of the Entrepreneur………………………. 51
3.4 Business Experience and Qualifications of the Employee…………………………. 51
3.5 Work Shift Schedule…………………………………………………………………52
3.6 Code of Ethics…………………………………………………………………….… 52
3.6.1 Code of Ethics of the Company………………………………………………...… 52
3.6.2 Ethical Practices and Policies Towards……………………………………....…… 54
3.6.3 The Obstacles……………………………………………………………………... 56
3.7 Corporate Social Responsibility and Community Involvement……………………..58
3.7.1 CSR Mission Statement…………………………………...……………………… 58
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3.7.2 CSR Vision Statement……………………………………………………………………...58
3.7.3 Ethical Strategies Corporate Social Responsibility Activities………………...…...59
3.7.4 Possible Partnerships……………………………………………………...……….61
Section 4. Financial Plan……………………………………………………………………….63
4.1 Project Cost…………………………………………………………………………..63
4.2 Financing Plan ………………………………………………………………………63
4.3 Loan Repayment Schedule…………………………………………………………..64
4.4 Security for Loan…………………………………………………………………….65
4.5 Operating Budget…………………………………………………………………….65
4.5.1 Sales Budget………………………………………………………………………..65
4.5.2 Purchases Budget…………………………………………………………………..65
4.5.3 Cash Budget………………………………………………………………………..66
4.6 Income Statement…………………………………………………………………….67
4.7 Balance Sheet………………………………………………………………………...68
4.8 Break-Even Point (BEP)…………………………………...………………………...69
4.9 Margin of Safety……………………………………………………………………..70
4.10 Financial Analysis……………………………………………....…………………..71
4.10.1 Horizontal Analysis……………………………………………...……….71
4.10.1.1 Statement of Financial Position Horizontal Analysis…………………..71
4.10.1.2 Statement of Comprehensive Income Horizontal Analysis…………… 72
4.10.2 Vertical Analysis………………………………………………………… 73
4.10.2.1 Statement of Financial Position Vertical Analysis…………………….. 74
4.10.2.2 Statement of Comprehensive Income Vertical Analysis………………. 76
4.11 Financial Ratios……………………………………………………………………..78
4.11.1 Liquidity Ratios…………………………………………………………...78
4.11.2 Activity/Asset Utilization Ratios…………………………………………79
4.11.3 Solvency/Leverage & Debt Service Ratios……………………………….80
4.11.4 Profitability/Performance Ratios………………………………………….81
4.11.5 DuPont Analysis Ratio…………………………………………………....83
5.0 Recommendations.…………………………………………………………………………...85
iv
Appendices……………………………………………………………………………………… 87
References……………………………………………………………………………………....128
List of Tables and Figures
Tables
Table 1.1 Qualitative Comparison ………………………………………………………………..6
Table 1.2 Selling Price…………………………………………………………………………...21
Table 1.3 Price Elasticity of Demand….………………………………………………………...22
Table 1.4 Sales Forecast.………………………………………………………….......................23
Table 1.5 Marketing Budget……………………………………………………………………..23
Table 1.6 SWOT Analysis……………………………………………………………….……....26
Table 2.1 Operation Process…………………………………………………………………......36
Table 2.2 Critical Tasks and Phases……………………………………………………………...37
Table 2.3 Fixed Capital ………………………………………………………………………….39
Table 2.4 Life of Fixed Capital…………………………………………………………………..39
Table 2.5 Maintenance and Repairs……………………………………………………………...39
Table 2.6 Terms and Conditions of Purchase of Equipment……………………………………..41
Table 2.7 Raw Materials and Cost of Raw Materials…………………………………………....42
Table 2.8 Labor and Cost of Labor……………………………………………………………....44
Table 2.9 Overhead Expenses…………………………………………………………………....44
Table 2.10 Pre-Operating Expenses……………………………………………………………...44
Table 3.1 Work Shifts Schedule………………………………………………………………….52
Table 4.1 Project Cost…………………………………………………………………………....63
Table 4.2 Loan Repayment Schedule…………………………………………………………….64
Table 4.3 Sales Budget…………………………………………………………………………...65
Table 4.4 Purchases Budget……………………………………………………………………...65
Table 4.5 Cash Budget…………………………………………………………………………...66
Table 4.6 Income Statement……………………………………………………………………...67
Table 4.7 Balance Sheet………………………………………………………………………….68
Table 4.8 Break- Even Point Beverages………………………………………………………....69
Table 4.9 Break- Even Point Desserts…………………………………………………...……… 69
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Table 4.10 Break- Even Point……………………………………………………………...…… 69
Table 4.11 Margin of Safety Beverages…………………………………………....…………… 70
Table 4.12 Margin of Safety Desserts……………………………………………...…………… 70
Table 4.13 Margin of Safety…………………………………………………………….……… 70
Table 4.14 Statement of Financial Position Horizontal Analysis……………………….……… 71
Table 4.15 Budgeted Statement of Comprehensive Income Horizontal Analysis……………… 72
Table 4.16 Budgeted Statement of Financial PositionVertical Analysis……………………...… 74
Table 4.17 Budgeted Statement of Comprehensive Income Vertical Analysis………………… 76
Figures
Figure 1 Operation Process………………….…………………………………………………. 36
Figure 2 Gantt Chart……………………………………………………....……………………. 38
Figure 3 Organizational Structure………………………………………………………………..46
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BUSINESS PLAN
EXECUTIVE SUMMARY
1. Brief Description of the Project
The Matcha Collective is a café that specializes in all things Matcha — aside from café
ready pastries and drinks, The Matcha Collective also offers ready-to-consume specialty Matcha
products ranging from flavored matcha drinks in bottles to warabi mochi — a Matcha
mascarpone cheese delight. The company’s vision is to (1) Showcase healthy yet delicious and
not-boring products where customers can expect an authentic fusion between traditional
Japanese Matcha with modern-day flavors, and (2) to provide efficient service while at it.
Conducive to the company’s goals, we have constructed a business plan for us, the entrepreneurs
and future investors to have an overview of what is required in order to reach these goals and
objectives sedulously.
We plan to open in September 2026 and operate in one of the partner’s place to be able to
accommodate the different machinery and equipment used, since the selling place at first would
just be a kiosk. The kiosk would be the main platform where The Matcha Collective will start
operations, which will take place in Bacolod City. The café’s administration are all graduates of
degrees pertaining accountancy, business, and management, making us credible and capable of
starting the business.
2. Brief Profile of the Entrepreneur
It all started when a group of four entrepreneurs perceived an opportunity — Bacolod
City has been flourishing and has a great potential for Japanese-inspired cafés, one that has yet to
1
be introduced and honed. After graduating from senior high school as an Accountancy, Business,
and Management students, each one proceeded with their chosen business-related courses that
serves as a preparation to build themselves a strong foundation in the different core principles of
business. After the entrepreneurs have graduated, with ample skills and experiences, the
entrepreneurs will be able to put its learnings into live practice. The group was able to garner
sufficient knowledge in areas such as Finance, Accounting, Economics, Business Math, Ethics,
etc. that are needed to acquire the exemplary skills, values and positive attitudes that will
increase its chances of success. With the team’s hard work and dedication it will be opening its
first start-up business.
3. Project’s Contributions to the Economy
This section showcases the contributions and impacts of The Matcha Collective to the
local economy. It mentions the benefits The Matcha Collective provides to its customers as well
to the community. It also discusses how the entrepreneurs' social engagement influences the
principles and ethics evident in company activities and outcomes.
Adaptability, Flexibility, & Stability. As a small start-up business, The Matcha Collective has the
ability to adapt to local economic climates due to its direct connection to the local
community. It serves more as a viable alternative to big businesses that allows The
Matcha Collective to grow. Therefore, this creates stability to be less likely to be
vulnerable to changing market conditions and economic cycles that could lead to
recession or widespread job loss as it only imposes low risk. If ever there would be a
downturn, The Matcha Collective can still strive to survive because of the local support
of the community.
2
Job Opportunities. Opening The Matcha Collective requires manpower to operate as it serves its
customers. The company will be prioritizing the job seekers those who are on the bottom
of the socioeconomic ladder and provide training to them. With this, the company
reduces the unemployment rate as it creates job opportunities, employing/hiring Filipino
talents in the place. Thus, it provides households with stable income driving them to have
a higher purchasing power that could help boost the sales of other local businesses.
Tax. The Matcha Collective gives back to the government in a form of tax. As the business earns
revenue, it is mandated by the government to pay a significant portion of 8% from the
total sales of the company. In light of this, The Matcha Collective exhibits a proactive
approach as it will be directly reflected in our respective local community, wherein the
money still circulates in the local economy.
The local economy. The Matcha Collective is willing to support local goods since some of our
ingredients are locally sourced. This will help fellow local businesses to grow in the local
market it will also help The Matcha Collective to keep in touch with the suppliers in the
local area to have less hassle of waiting for the supplies if the supplier is in other places.
Stimulate the local economy. The Matcha Collective will contribute to the local economy by
development and growth of new small businesses. The company will significantly take
part because of the possible growth the Matcha Collective has and it’s expansion plan.
The company will not stay small but small companies that develop become huge
companies generally continue in the markets where they started.
3
Section I
MARKETING PLAN
1.1 Description of the Product
The Matcha Collective offers a wide variety of products from food to beverages that are
driven from Japanese-inspired recipes at an affordable price yet does not compromise its taste.
Presented below are the descriptions of each product The Matcha Collective offers to its
customers.
Desserts
● Sticky Matcha Pull-apart Loaf - Pull-apart Japanese Matcha bread that is light and fluffy.
● Matcha Moist Cake with White Chocolate - Fluffy and moist Matcha flavored cake with
white chocolate to complement the taste.
● Matcha Dream Cake - Dreamy, liquidy and moist layer dream cake that is created by a
glossy, smooth matcha mixture.
● Red Bean Mochi - Japanese glutinous rice cake with sweetened red bean paste filling.
● Strawberry Mochi - Japanese glutinous rice cake with strawberry filling.
● Chocolate Mochi - Japanese glutinous rice cake with chocolate filling.
● Taro Mochi - Japanese glutinous rice cake with dulce taro filling.
● Almond Matcha Cookie - Chunky almonds and gooey matcha cookies baked to
perfection.
● White Chocolate Chip Matcha Cookie - Matcha cookies baked to perfection with white
chocolate chips.
● Chocolate Chunks Matcha Cookie - Chunky chocolatey chunks and matcha combined in
one cookie.
● Oreo Matcha Cookie - Big chunks of Oreo and matcha, the best of both worlds combined
in one cookie.
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Beverages
● Matcha Latte - Rich, foamy, and creamy sweet taste matcha latte served with syrup of
honey.
● Dirty Matcha (Matcha & Espresso) - Espresso with layered matcha and milk.
● Ice Blended Matcha Affogato - Blended matcha with a scoop of vanilla ice cream topped
with a shot of espresso.
● Matcha Mocha - Rich flavor of cocoa and matcha with milk.
● Matcha Strawberry Layered - Matcha drink with a pop of fruity goodness mango and
strawberry.
● Cold Brew - Ground coffee steeped overnight.
● Cold Brew w/ milk - Ground coffee steeped overnight and added with milk.
● Cappuccino - A coffee drink made with steamed milk foam and espresso.
● Espresso Romano - A shot of espresso served with a slice of lemon.
● Americano - Coffee notes that are intense and deep, as well as nutty and earthy flavors.
● Kori-Kohi - Frozen ice cubes coffee with milk.
● Iced Rose Matcha Latte - The matcha and rose blossom latte is a soothing and lovely
beverage topped with dried rose petals.
● Lavender Lemonade - Lemonade with lavender infusion; a small handful of freshly
picked and rinsed lavender flowers perfect for refreshing.
● Iced Golden Turmeric Latte - Milk combined with turmeric, cinnamon, and ginger to
create a bright yellow iced beverage latte
● Blue Matcha Latte - All natural blue drink with butterfly pea flower mixed with matcha.
● Mango Dragon Fruit Tea with Green Bean Coffee - A refreshing drink with mango,
dragon fruit mixed with green bean coffee.
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1.2 Comparison of the Product with Its Competitors
The Matcha Collective is a unique café in Bacolod City, which anyone who likes matcha
or wants to taste matcha products can satisfy its cravings in The Matcha Collective. One thing
that makes The Matcha Collective standout from other cafés in the city is the matcha line
products it offers to the Bacolodnons. It is because most of the beverages and desserts of The
Matcha Collective are integrated with matcha, but at the same time, it also offers superfood
specials and coffee for non-matcha drinkers.
Table 1.1
Qualitative Comparison
Business
Name
Position
(Local)
Presence
Workforce
Divisions
Price Range
The Matcha
Collective
Facebook Page,
Website, and a
store in Bacolod
City
Bacolod
City
1 branch in
Bacolod
City
Matcha drinks,
Coffee,
Superfoods,
Matcha
Desserts
All beverages
(₱80 - ₱100)
Website,
Facebook Page,
and a store in
Bacolod City
Bacolod
City
Coffee, Tea,
Snacks, and
Desserts
Coffee
(₱30 - ₱95)
Mayok’s
Coffee Haus
1 branch in
Bacolod
City
Desserts
(₱17 - ₱99)
Whiptops
(₱85)
Kid’s Beverages
(₱20 - ₱60)
Tea
(₱35)
Snacks
(₱20 - ₱65)
Beanbrewing
Cafe
Coffee Project
Website,
Facebook Page,
Instagram Page,
and a store in
Bacolod City
Bacolod
City
Website,
Facebook Page,
Bacolod
City, Iloilo
4 branches
in Bacolod
City
Coffee
Hot Drinks
(₱35 - ₱50)
Cold Drinks
(₱50 - ₱60)
1 branch in
Bacolod
Coffee, Fruit
Drinks,
Coffee
(₱105 - ₱190)
6
and a store in
Bacolod City
Little Farmers
Coffee
Facebook Page
and Store in
Metro Manila,
Bacolod City,
and Cebu City
City, Cebu
City, Metro
Manila,
Cavite,
Bulacan
City
Cebu City,
Bacolod
City, and
Metro
Manila
1 branch in
Metro
Manila, and
Cebu City,
and 2
branches in
Bacolod
City
Matcha,, and
Meals
Matcha
(₱150 - ₱165)
Fruit Drinks
(₱125 - ₱190)
Coffee
Hot
(₱55)
Iced
(₱65)
Decaf
(₱80)
1.3 Location
The Matcha Collective, will be having a physical store. It will be choosing a location
based on many factors. The Matcha Collective needs to consider the accessibility, security, and
potential for growth of the business. It will be necessary to ensure that the location is accessible
by car and public transport and easy to navigate as well as the safety of customers and
employees. It is essential to keep its premises secure to take more security measures. The Matcha
Collective takes consumer trends into consideration to ensure that the population can maintain
our sales of matcha-packed goods in SM City Bacolod Northwing. Because of these factors, the
team agreed to set its target position on a platform that generates foot traffic as all the factors
needed to launch and maintain the café would be addressed. However, once the company has
enough money for expansions and plans, it expects to upgrade its café kiosk to a larger retail
location to serve more customers and provide enough space for the café equipment. The Matcha
Collective will be located on the second floor of SM City Bacolod Northwing.
7
1.4 Store Layout
Top View
Facade
8
3D View
1.5 Market Area
The Matcha Collective potential market is the middle-income earners who enjoy any
products that are integrated to matcha and as well coffee. However, The Matcha Collective has a
wide span of market area, given that the location of the business is at SM City Bacolod
Northwing. Therefore, it is undeniable that this will give room for The Matcha Collective to
expand its audience knowing that there multiple people that are visiting the place, ranging from
students, families, window shoppers, tourists, workers, and more that belong in the range of
lowest to highest income earners. When the business starts to grow, The Matcha Collective will
9
be branching out in the different areas in the city as well as the neighboring cities, and expand all
over the nation through physical stores and e-commerce.
1.6 Main Customers
The main target customers of The Matcha Collective are the men and women who are in
middle to upper classes who are willing to shell out their money for the affordable beverages and
foods of The Matcha Collective. Since the business offers an array of products in the menu like
coffee, matcha, desserts, and superfoods, it is flexible to an individual’s taste and preferences.
We have desserts that suit any age and who have sweet-tooth, we also offer coffee for people
who consume coffee, and also matcha drinks and superfoods for the teens and adults who are
health conscious. The Matcha Collective’s menu is open and very welcome to everyone. In
addition, The Matcha Collective will be also adding holiday beverages which suits the theme of
the holiday such as Christmas drinks etc. As time goes by, The Matcha Collective will sell new
products that are unique and is exclusive only to The Matcha Collective. Thus it will create
demand since the product would only last for a short time and also attract more customers in the
future.
1.7 Total Demand
1. How interested are you in trying out a start-up café?
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The results show that 32.9% of the respondents are moderately interested, 28.2% are very
interested, and 22.7% are extremely interested in trying out a start-up cafe. From the results, The
Matcha Collective can infer that it can easily enter the market because it is evident that there is a
large fraction of positive response regarding the target customers’ level of interest.
2. How do you usually discover an opening start-up business?
The results exhibit that the respondents primarily discover a start-up business through
social media advertisements. This implies that they are active users of social media applications
which enables them to easily discover an opening business. With this, the business can enhance
its social media presence in order to easily reach target customers.
3. Where do you want a café to be situated?
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The results present that 31.8% of the respondents want a café to be situated in malls and
38.8% want it to be in a commercial establishment. This signifies that respondents want it to be
accessible and convenient for them to visit the café.
4. How often do you go to malls?
The results show that almost ¾ of the respondents visit the mall. This would be
advantageous for The Matcha Collective since more people will discover it as it will be located
inside a mall.
5. How often do you go to a café?
The results exhibit that only 20% of the respondents are rarely and 0.4% answer never in
visiting a café. It implies that the rest have a higher frequency in visiting a café. This would
allow The Matcha Collective to be more visited by potential customers as they are frequently
visiting cafés.
6. Do you think the location of the café affects your buying behavior?
12
The results show that half of the respondents answered that their buying behavior in café
is being affected by its location. This shows that The Matcha Collective should situate its store in
a place that is accessible and convenient for the target customers
7. Which days are you most likely to visit the café?
The results project that respondents are most likely to visit the café during weekends.
With this result, The Matcha Collective can make more promos, discounts, and other special
offers during these days since it is most likely to be visited by customers.
8. What time of the day would you most likely visit a café?
13
The results display that 72.5% of the respondents most likely to visit a café during snack
time. The Matcha Collective offers food and beverages that are perfect for snacks such as
cookies, cakes, latte, cold brew, etc.
9. What are the reasons why you go to cafes?
The results show that the majority of the respondents main reason to visit a cafe is to
hang out. This suggests that The Matcha Collective should make its store more appealing to
target customers through making its ambiance comfy and instagramable.
10. How do you prefer to buy/order your drinks and snacks in a café?
The results exhibit that 88.2% of the respondents prefer to buy or order food in-store. The
Matcha Collective will be having a physical store, which is the counter type store to cater both
dine-ins and takeouts.
14
11. In a café, how do you prefer to consume your meals?
The results show that 83.1% of the respondents wanted to consume their meals dining in
the store. The Matcha Collective will be able to serve both dine-ins and takeouts customers,
however for the dine-ins it can only accommodate roughly 20 - 25 people inside the counter.
12. How frequent do you order drinks in a week?
The results exhibit that 43.1% of the respondents order drinks at least once a week. This
implies that respondents do have a regular consuming habit of consuming beverages.
13. When buying a drink, do you usually also order food with your drink?
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The results project that the majority of the respondents sometimes order food to
complement their drinks. The Matcha Collective offers snacks and desserts that are made
available for the potential customers to partner their beverages with.
14. After finishing your first order, do you usually plan to order a second batch right after?
The results indicate that 45.9% of the respondents rarely plan to order a second batch
right after the finish consuming their first ordered meals. Customers not planning to order a
second batch are likely satisfied already with its first order.
15. Out of these beverages, what do you prefer to drink?
16
The results present that 62.7% of the respondents prefer to drink milk tea which is not
offered by The Matcha Collective since there are already numerous stores offering such
products. The second highest votes is the coffee with 61.2% rating, matcha drinks with 38%
ratings and superfood specials with 22.7% ratings, the three beverages are available in The
Matcha Collective and votes implies that people are also willing to try out and taste new
beverages.
16. In addition to drinks, what food do you prefer to order?
The results display that respondents prefer to order cookies, sandwiches, cakes, and
donuts in addition their drinks. This signifies that respondents want their beverages to have a
snack/s to accompany their drinks.
17
17. What is the maximum price that you would be willing to pay for a 16oz sized all-organic
drink (Matcha, Coffee, Tea, etc.)?
The results show that the majority of the respondents are willing to pay a range of ₱100
to ₱150 for a 16oz sized all-organic drink. The prices in the beverages in the menu of The
Matcha Collective are also similar in this range.
18. Whom do you most prefer spending your time having coffee with?
The results display that 59.2% of the respondents prefer to spend their time having their
coffee with their friends. Since the target customers of The Matcha Collective are teens to young
working adults, they are most likely to be around with their friends while visiting or checking out
a new café.
19. How important are the following features to you when going to a café?
18
A good ambiance, quality customer service, and a nice quality of drinks are the top three
things respondents look for when going to a café. The company will take note of these three
things in order for it to be applied in our business. This will assure the business to maintain a
good number of customers wherein the kiosk will have customers.
22 - 23. On a scale of 1 to 5, rank the following features in terms of importance when it comes to
Matcha and other types of tea
19
The bar chart illustrates that respondents are looking for the quality and taste of the coffee
and tea that are being served to them. With these, the company will try its best to offer these
following features to the customers.
24 - 25. Given this menu, choose beverages that you would like to order. (Choose 1 or more)
The bar chart shows the number of votes the respondents would want to order. The
business will be ordering the desserts based on the demand to limit food waste as well to ensure
the customers that they are served with fresh goods.
20
1.8 Selling Price1
Table 1.2
Matcha Drinks
Matcha Latte
₱80.00
Dirty Matcha (Matcha & Espresso)
₱90.00
Ice Blended Matcha Affogato
₱90.00
Matcha Mocha
₱90.00
Matcha Strawberry Layered
Superfood Specials
Coffee Drinks
₱100.00
Iced Rose Matcha Latte
₱80.00
Lavender Lemonade
₱80.00
Iced Golden Turmeric Latte
₱90.00
Blue Matcha Latte
₱90.00
Mango Dragon Fruit Tea
₱90.00
Cold Brew w/ Milk
₱80.00
Cold Brew
₱80.00
Cappuccino
₱90.00
Americano
₱80.00
Kori-Kohi
₱90.00
Subsequent to the survey results gathered from the market survey conducted (57.3% are
able and willing to spend from ₱100.00 to ₱150.00 for a 16oz size drink (Matcha, Coffee,
Healthy Tea drinks), the average price cost per unit would be ₱125.00. Our selling prices are
lower than the maximum price the respondents are able and willing to pay for — this gives The
Matcha Collective more opportunities and advantages to win consumers over.
1.9 Price Elasticity of Demand
On account to the limited time allotment of the data, we have based our elasticity demand
on the following survey results:
1
Appendix B
21
What is the maximum price that you would be willing to pay for a 16oz sized all-organic drink
(Matcha, Coffee, Tea, etc.)? 2
Table 1.3
Price Range
Average Price
No. of People who want to buy
Less than 100 (50 - 99)
₱74.50
75
100 - 150
₱125.00
146
151 - 200
₱175.50
26
More than 200 (201 - 250)
₱225.50
8
Ed =
% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑑𝑒𝑚𝑎𝑛𝑑𝑒𝑑
% 𝑐ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑝𝑟𝑖𝑐𝑒
Ed=
𝑄2−𝑄1
×100
𝑄1
𝑃2−𝑃1
×100
𝑃1
Ed=
146−75
×100
75
125−74.50
×100
74.5
Q2 = 1.40
2
Ed=
Ed=
𝑄3−𝑄2
×100
𝑄2
𝑃3−𝑃2
×100
𝑃2
26−146
×100
146
175.50−125
×100
125
Q3 = -2.03
Ed=
𝑄4−𝑄3
×100
𝑄3
𝑃4−𝑃3
×100
𝑃3
Ed=
8−26
×100
26
225.50−175.50
×100
175.50
Q4= -2.43
Survey question no. 17 in section 1.7 total demand of the Marketing Plan
22
Interpretation
For the Quantity Demanded 2, which represents 146 of the respondents from the market
survey, consumers are responsive to price changes, meaning a slight increase in price will
significantly decrease the quantity demanded. This is relative to the fact that elastic demand
applies to non-essential goods such as that of The Matcha Collective’s (drinks and pastries).
For the 3rd and 4th Quantity Demanded, which represent 26 and 8 of our survey
respondents, respectively, signifies an inelastic demand, meaning these consumers are not too
responsive to price changes, given that they are able and willing to pay for a price that is much
expensive than our selling price — there will only be a slight decrease in the quantity demanded
if there’s a price increase.
1.10 Sales Forecast3
Table 1.4
Quarter
Sales
Cost of Goods Sold
Gross
1st Quarter
₱2,277,520.00
₱622,933.20
₱1,654,586.80
2nd Quarter
₱2,418,755.00
₱712,250.30
₱1,706,504.70
1.11 Promotional Measures
Promotional measures will be used in order to achieve marketing goals in a competitive
industry and to communicate with our target market that will result in the improvement of The
Matcha Collective’s brand awareness and product which could stimulate demand, inform
consumers about our product, and persuade consumers.
3
Appendix C
23
1.12 Marketing Strategy
Digital Marketing Strategy: In this digital age, The Matcha Collective intends to take
advantage of this by incorporating digital marketing strategies. Firstly, the company plans to put
a website up that will have intuitive design and a graphical layout which catches the attention of
the consumers. As well as a user-friendly design that makes it easy for consumers to navigate
around. Through this website, user and consumer experience is emphasized by the means of
blogs, product descriptions, company story, and newsletters which inform subscribers about the
latest offers. With that, the company plans to start off with Content Marketing paired with
Search engine optimization (SEO) Marketing Strategy by blogging about the health benefits
of Matcha and the importance of having a healthy diet. Through this integrated marketing
strategy, we can build our brand reputation online from the relevant content being put up by the
company. By creating content around the said topics, The Matcha Collective can work its way up
on search engine results pages such as that of Google. From the website traffic, there would be
client engagement that could result in conversions which heightens our media visibility and
competitive advantage which all points to the improvement of The Matcha Collective’s brand
awareness. From the blogs, the audience will be able to trust The Matcha Collective and make
the company a good candidate for their next purchase of healthy products.
Social Media Marketing Strategy: With an increasing number of social media users in the
world, The Matcha Collective will be increasing brand awareness through social media platforms
such as Facebook, Instagram and Twitter. This will not only generate new leads but boost the
brand engagement as well. The company will be running Facebook Ads for marketing strategy in
order to reach a good amount of users. The promoted ad will be boosted twice every quarter and
will be visible on users Facebook and Instagrams timeline, feeds, stories and my day. The
24
Matcha Collective promoted post will lean towards getting more engagements who are likely to
react, comment and share the company’s brand.
Word-of-mouth Marketing (WOM marketing) Strategy: A single suggestion can have much
more significant effects in today's hyper-connected environment, allowing word-of-mouth
marketing to capitalize on the opportunity. This is one of the most effective and inexpensive
ways of marketing The Matcha Collective products, as it is unpaid and this converts customers of
The Matcha Collective into its loyal brand advocates. Word-of-mouth promotion occurs when
the customers' high enthusiasm in the service and the products of The Matcha Collective or
satisfaction will reflect in its conversation among their peers — this is typically caused by a
positive customer experience. Therefore, The Matcha Collective will apply these tactics in both
traditional and modern ways. Wherein satisfied customers will promote the company's through
their dialogues and/or their social media accounts as they have the natural desire to recommend
the brand's product, as well as share their support.
Voucher Marketing Strategy: Promos and discounts quickly draw in the attention of the
potential customers for the brand. Thus, The Matcha Collective will be giving away an electronic
voucher or also known as e-voucher. A eVoucher is an electronic voucher which is delivered to
the customers by email, this can be emailed directly to the lucky recipient or sent to the
customers to be gifted. The Matcha Collective will be giving out vouchers during special days
such as Christmas, New Year, Black Friday, Valentines, and on other special occasions.
Loyalty Card Marketing Strategy: Reward programs accelerate the loyalty life cycle of the
consumers, thus, The Matcha Collective plans to build loyalty through issuing loyalty cards. The
card will have a system of rewarding points for every purchase. If the consumer has already
collected a certain amount of points, they can avail one reusable tumbler or choose to avail a
25
discount. The loyalty card builds up loyalty and the free reusable tumbler builds brand reputation
and image — when consumers avail and use our tumbler, in a way, they also showcase and
spread our brand to other people, making it a win-win situation. The admin has estimated a total
of 30 loyalty cards redeemed per month throughout the two quarters, as we have thought that this
amount is neither too much or too low and probable. Since not all loyalty card redeemers will
reach the points needed to avail freebies and discounts, we estimated that approximately 60% of
them will be able to redeem the freebie. Cards cost around 10 and the tumblers, around 40php if
bought at a wholesale price. (30*10 = 300 ; 30*60%= 18 ; 18*41 = 738+300 = 1,020php)
1.13 Marketing Budget4
Table 1.5
Expenses
Cost
Website
Free
Facebook Ad boost
₱250
E-Voucher
₱3,000
Poster (for the first month only - grand opening)
₱2,000
Loyalty Card
₱1,020
Miscellaneous
₱2,000
Total
₱8,270
1.14 Analysis Tools
1.14.1 SWOT Analysis (strengths, weaknesses, opportunities, and threats)
Table 1.6
Strengths
●
●
●
●
4
Healthy yet affordable beverages
Organic ingredients
Unique taste and concept
Location
Weaknesses
●
●
●
The lack of supply due to natural causes
(Matcha plants)
Small venue
Start-up business (low brand recognition)
Appendix D
26
●
●
●
●
Flexible and affordable menu
Niche specialty (locally)
Customer service
Values strong relationship
●
●
●
Opportunities
●
●
●
●
●
●
●
●
Multiple branches in different locations
Social Media
Exploring mixed-Matcha flavors
Investors
New products on Holidays
Growing market for Matcha
Growing market trend of healthy food and
lifestyle
Online Food Delivery companies
Limited manpower
Cafés are starting to saturate the market
Slow online presence
Threats
●
●
●
●
●
Similar beverages to a different cafés
Newly open cafés near our location
Prices of the ingredients increased
Personal preference of consumers
Competition to similar cafes
Strength
Healthy yet affordable beverages. Healthy products are growing in demand but
consumers are not able to buy because of its expensive prices, thus, The Matcha Collective offers
healthy products at an affordable price to allow the market to buy healthy products.
Organic Ingredients. The Matcha Collective uses organic ingredients to ensure the
consumers a high-quality and healthy product.
Unique Taste and Concept. Not only does the company provide Matcha-specialized
products, but also mixed matcha products which incorporate a unique taste.
Location. The establishment is located on the second floor of SM City Bacolod
Northwing where a lot of people are passing by and hanging out and where foot traffic is present.
Flexible & Affordable Menu. The Matcha Collective offers a wide variety of menu
ranging from matcha beverages, coffee, teas, and more that also extends to different kinds of
desserts which are also affordable as it only ranges from Php80 to Php100 for beverages.
27
Niche Specialty (locally). Matcha is a new market trend that has not been fully adapted by
existing businesses and start-up businesses in Bacolod City, making The Matcha Collective the
lead in the Matcha market locally.
Customer Service. The Matcha Collective provides customers with a quality service that
can go along and compete with the market.
Strong & Healthy Relationship. The company values a strong and healthy relationship
with its employees to maintain a mutually respectful and positive workplace.
Weaknesses
The lack of supply due to natural causes (Matcha plants). As a matcha cafés, the
company needs supplies of matcha, but due to natural causes, there is a possibility of lacking
supply.
Small Venue. The small kiosk establishment will not be able to cater to a lot of consumers
at the same time and will have limited seating capacity.
Start-up Business (low brand recognition). Since The Matcha Collective is a start-up
business, its brand awareness is still relatively low.
Limited Manpower. As a start-up business, the company has a limited manpower only
restricted to a small number of staff and employees.
Cafés are starting to saturate the market. Bacolod City has numerous cafés, having both
start-up and well-established ones.
Slow Online Presence. The company has not yet generated enough traffic such as a lack
of online advertisements. Therefore, it is difficult to penetrate in the market.
28
Opportunities
Multiple branches in different locations. This enables customers to come to the cafés with
convenience and ease since the business has multiple branches in different areas without going to
the main branch.
Social Media. This enables the business to build a stronger brand reputation, awareness,
and rapport through posting online and interacting with consumers.
Exploring mixed-Matcha flavors. The company's products would have an opportunity to
be the first infused and mixed- matcha flavors in Bacolod City.
Investors. The business will be getting more capital from investors as they see a potential
start-up.
New products on Holidays. The Matcha Collective presents a new product during holiday
seasons for customers to have something to look forward to. However, the new products will
only last on the given holiday.
Growing market for Matcha. The Matcha market is expected to gain good growth by
2027 growing at a growth rate of 8.52% from 2020 to 2027. The business plans to accelerate the
trend through beverages, deserts, and confectionaries.
Growing market trend of healthy food and lifestyle. Consumers have become more
health-conscious and are wanting functional, tasty, and healthy beverages.
Online Food Delivery companies. OFD applications such as FoodPanda and GrabFood
are used by a lot of consumers in Bacolod City, this gives the company’s brand awareness a
boost and develop loyal customers and build profit as the business will also partner with these
apps in order to showcase the company’s products to a wide range of consumers.
29
Threats
Similar beverages to different cafés. It is inevitable that The Matcha Collective will have
similar café products to other cafés in the area allowing the potential customers to choose.
Newly open cafés near our location. These would leave people with a variety of options
on which cafés to go to.
Prices of the ingredients increased. When prices of ingredients such as dairy, Matcha,
and coffee beans increase, all products of the business will also increase, resulting in a changed
behavior from the consumers. This may also limit supply and decrease productivity of The
Matcha Collective.
Personal preference of consumers. Customers do have their own personal taste and
preferences on the different café products.
Competition to similar cafés. Customers are free to choose where to order their drinks to
fulfill their satisfaction.
1.14.2 PESTLE Analysis (political, economic, social, technological, legal, environmental)
Political
The Matcha Collective must adhere to the laws and regulations of the countries from
which it purchases its raw materials. This is to practice fair trade. The Matcha Collective will be
getting it’s Matcha in Japan. Because of its strong dependence on exports, Japan, the world's
third largest economy, is extremely vulnerable to external factors. The Matcha Collective will
assure the government to pay the taxes to follow the rules of the country and to avoid conflicts
that can damage the company. The Matcha Collective will try its best to be a good example to
30
other small businesses because of having a fair company and following the rules of the
government.
Economic
As the economy of the Philippines continues to grow, the income of consumers also
increases, consumers are now more likely to splurge on higher-quality produce, such as
higher-quality coffee grounds, as their incomes rise. In this case, The Matcha Collective will
upgrade its quality of beans and services to match the satisfaction which can also help the
company to grow. If the business is spreading its branches around the Philippines, this will also
be an opportunity for the unemployed employees that qualifies the requirements of The Matcha
Collective to be hired.
Social
Healthy lifestyle is becoming a new trend and Bacolod City is leaning towards that
direction. Consumers are valuing their health more than they are valuing the product. The way
people think about health has changed significantly in the twenty-first century. Making healthier
choices is more common than ever, prompting consumers to spend more time exercising, eating
better food, and abstaining from such behaviors. The Matcha Collective will be providing
healthier alternatives that are available for vegan enthusiasts. The Matcha Collective will give
the customers a healthy benefit for their health which will be beneficial for them since The
Matcha Collective’s products are more on healthy food. Because of this pandemic, The Matcha
Collective is also worried and concerned about its customers’ health so we will do our best to
give them a healthy lifestyle that can help them have a strong immune system.
31
Technological
With the use of technology, it is easier for our company to raise brand awareness using
social media platforms. Technology will also help the company to promote its products, holiday
products that may catch the attention of the viewers, and upcoming new products which will be
exciting to taste. It can also help the company to communicate with suppliers, investors, and
even curious customers who want to know the schedule of the cafe. The machines that are going
to be used for our cafe to give convenience such as espresso machines. This will help the
company make the best espresso and make the job easier.
Environmental
The weather such as rainy days can generate us more customers because of the products
that we offer. This will give comfort and such an amazing feeling sipping a coffee from The
Matcha Collective in a cold weather. While in hot days such as summer, we can offer them our
shakes and frappes which can help them fight the hot temperature and keep them cool headed
and satisfied at the same time. Matcha is a low carbon footprint which can help the consumers to
stay healthy and enjoy their drink and food at the same time.
Legal
The company will be following the regulations and requirements in order to operate our
business legally. The Matcha Collective will assure the government to follow the policies that are
needed to operate our business. The company will also have an originality on its taste of
products, logos, and services to avoid conflicts with other cafes that are similar to our or to our
32
competitors. The Matcha Collective will also make sure the safety of the customers by doing
safety protocols while making, brewing, or baking the products. We will also make sure that our
employees are well trained, licenced, and fit for the job that they are given to serve the customers
well. We’ll make sure that they will have ethical manners to serve the customers and not damage
the image of the company.
Ethics
The Matcha Collective will do its best to show how hospitable, respectful, and ethical we
are when serving the customers. We will assure the customers that our employees are well
trained with ethical values that are needed. In order to make a good service to the customers, the
employees, including the managers, should know the values that will show respect to the
customer and feel comfortable and secured inside the cafe.
1.14.3 Porter’s Five Analysis
Competitive Rivalry
The Matcha Collective has numerous competitions given that it is located inside the mall
with ample number of food businesses having the same model as the firm. The strong number of
competition between well-established, reputable, and small start-up cafés businesses is also too
large or extensive to measure as this business is becoming a trend as it requires less capital. The
rise of coffee shops in the city gives each business a strong sense of competitiveness, however
for The Matcha Collective, it has not yet widely known and has not yet garnered a reputation. To
be able to compete with the market, The Matcha Collective offers a wide variety of menu,
healthy options, a Japanese-themed interior and ambiance, quality service, and a niche —
33
particularly in the matcha product line. With these, it sets The Matcha Collective an edge among
its competitors.
Supplier Power.
Our main raw ingredient; Matcha, is grown only in two regions in Japan. Although it is
only grown in Japan, there are a lot of Matcha farms in Japan which means the bargaining power
of suppliers is low — suppliers of Matcha can’t control or drive up the prices as much as or
whenever they want. This gives the Matcha Collective opportunity to analyze the Matcha
Supplier’s market and decide on which supplier gives us the most advantage and benefit. With
that being said, The Matcha Collective will partner with a local Matcha supplier in Japan as it is
much cheaper to directly buy there if wholesale, which is the case of our cafe. For the local
coffee beans, The Matcha Collective has already found different suppliers from all over the
Philippines, especially local farmers. The Matcha Collective’s raw ingredients, whether it is
coffee beans, matcha, milk, fruits,etc. are already standardized products as there already are a lot
of suppliers for the said products — this then does not create dependency to only one supplier
which makes us more flexible and open to choices that The Matcha Collective can weigh the
pros and cons.
Buyer Power.
In the coffee shop industry, the buyer's bargaining power is moderate. Given that many
start-up cafes are also developing in Negros Island, it will leave the customers to choose which
cafe to go to. Based on personal preferences and quality, consumers today are likely to purchase
beverages on those mentioned above. Therefore, brand loyalty is high, and The Matcha
34
Collective aims to keep the customers from buying our products from time to time through our
unique selling products, the matcha, customer service, and rewarding them from once in a while
rather than trying other cafes.
Threat of Substitution.
Being in the food and beverage and cafe industry, the threat of substitution is high due to
the availability of multiple substitutes as cafes are also starting to saturate the market with a lot
of cafes open that are already well-established and about to open. However, regarding our
product line, The Matcha Collective has a diverse and flexible menu which allows us to counter
the substitutes — tea is one of the major substitutes for coffee but our cafe also serves Matcha
and different types of tea, and vice versa. The Matcha Collective plants to leverage this said
flexible menu to counter problems of substitution.
Threat of New Entry.
The Matcha Collective will be located in the city of Bacolod, which is ranked as a first
class highly urbanized city on the Negros Island. As the city continues to progress as well as the
ease of entry in the coffee shop industry, this can threaten the business as it can introduce more
start-up cafes with much stronger forces like a bigger capital and a larger scope of connections
than The Matcha Collective. Furthermore, new entrants carrying and presenting new menus
especially beverages in the market can affect the business.
35
Section 2
PRODUCTION PLAN
2.1 Operation Process
Table 2.1
Input
Process
Output
Land, Labor, Capital,
Entrepreneurship
Social Media, Staff Training,
Transformation
Finished goods/products
The Matcha Collective will start off in putting together its inputs consisting of land, labor,
capital, and entrepreneurship. The company needs to assure that all things needed are acquired
just like the manpower, the raw materials, the kiosks, etc. before the store starts accepting
customers in order to have a smooth and easy production process. Baristas will undergo training
and seminars to be able to know how to serve the customers, raw materials will be delivered to
the kiosk, and staff will report on time (one hour before the kiosk opens) to prepare the things
needed.
Figure 1
36
The operations will be processed through the kiosk the moment it opens and starts
accepting orders from customers may it be through a food delivery app such as FoodPanda and
GrabFood or walk-in customers. In the kiosk, the process will happen as shown in the flow chart
above (Figure 1). The employee will take the order/s of the customer then the customer will hand
the check amount. After transactions are made, order/s will be prepared by the barista then it will
be handed to the customer. In case of sufficient cash the employee will discard the order. With
food delivery companies, selection of menu will take place in the aforementioned applications
and payments will be handled by the employees/drivers of the OFD companies.
2.2 Critical Tasks and Phases
Start Date
Table 2.2
End Date
Task
3rd Week of Aug 2025
2nd Week of Jan 2026
Feasibility Study
3rd Week of Jan 2026
2nd Week of Feb 2026
Business Planning
3rd Week of Feb 2026
3rd Week of Feb 2026
Loan Application
2nd Week of Mar 2026
2nd Week of Mar 2026
Loan Approval
2nd Week of Mar 2026
4th Week of Mar 2026
Filling of Legal Business Requirements
1st Week of April 2026
4th Week of May 2026
Site Formation Process
4th Week of May 2026
2nd Week of Jun 2026
Purchase of Raw Materials
3rd Week of Jun 2026
2nd Week of Jul 2026
Staff Hiring
4th Week of Jun 2026
2nd Week of Jul 2026
Platform Development
3rd Week of Jul 2026
1st Week of Aug 2026
Staff Training
2nd Week of Aug 2026
2nd Week of Aug 2026
Social Media Launching
2nd Week of Aug 2026
4th Week of Aug 2026
Grand Opening Planning and Preparations
1st Week of Sept 2026
1st Week of Sept 2026
Grand Opening
37
2.3 Gantt Chart
Figure 2
2.4. Operating Hours
The Matcha Collective adheres to the operating hours of the mall where the kiosk is
situated, at SM Bacolod. It opens from 10AM to 10PM, however employees are required to
report one hour early to prepare the kiosk and one hour late to clean the kiosk and prepare it for
the next day.
2.5 Fixed Capital5
Table 2.3
Fixed Capital
Cash Register
Cost
₱12,000.00
Cleaning Supplies
₱548.00
Heavy Equipment
₱44,358.00
Kiosk
5
₱75,000
Appendix E
38
Appliances
₱65,184.76
Utensils
₱4,003.00
Grand Total
₱201,093.76
2.6 Life of Fixed Capital6
Table 2.4
Depreciation Cost
Fixed Capital
Per Year
Per Month
₱1,750
₱145.83
Cleaning Supplies
₱156
₱14.94
Heavy Equipment
₱2,844.9
₱179.77
Kiosk
₱2,666.67
₱333.33
Appliances
₱3,142.67
₱267.69
₱375.38
₱31.28
₱11,674.23
₱972.84
Cash Register
Utensils
Total
2.7 Maintenance and Repairs
Table 2.5
Equipment
Maintenance and Repair
Cash Register
The cash register will be maintained every week, as the heads of the
business do its weekly inventory and check its sales. It will also be repaired
if there will be any malfunctions that need repair.
Spray bottles will always be refilled and we will clean it before refilling the
bottle for safety purposes.
Cleaning Supplies
Heavy Equipments
6
Trash bin will be thrown out once it is full and it will be cleaned before we
close our kiosk so that tomorrow, it’s ready.
The display refrigerator will be cleaned every morning before we open the
kiosk to look presentable to the customers for the exact purpose of having a
healthy product. We should also have a healthy and safe place to put our
products.
Appendix F
39
The refrigerator will be cleaned every restock of the ingredients or twice in
a month so that the ingredients that we will be putting inside the refrigerator
will be organized and easy to get.
Kiosk
The kiosk will be cleaned before and right after the store opens, to ensure a
clean and sanitary space, as well as secure the customers’ safety. The layout
of the kiosk will remain the same, however, there will be small designs and
decorations whenever there is a special occasion or events like Christmas,
New Year, Valentine’s Day, etc. If ever there will be damages in the kiosk,
The Matcha Collective will immediately ask for repair.
Appliances
The appliances will be checked every two weeks to see if there are any
malfunctions. Workers will also observe and report any problem regarding
the appliances. If ever it fails to function, it will be repaired.
Utensils
The utensils will be washed right after it was used and it will be sterilized.
After that, it will be returned to its designated storage. This will be put into
practice by the workers to assure that there will be no misplacements of the
utensils. After the store closes, the utensils will also be sterilized in
preparation for the next day. In addition, every utensil in the kiosk will be
checked. Whenever there will be damages or lost utensils, The Matcha
Collective will buy a new one for replacement.
2.8 Sources of Equipment
The kiosk, furnitures, fixtures, and other built-in objects in the physical store of The
Matcha Collective will be sourced from the local woodworkers through a pakyaw contract,
wherein the group of woodworkers will build the physical store, and The Matcha Collective will
pay for both the labor and the materials. The heavy equipment and other appliances will be
bought from Emcor Bacolod and Citi Appliance. For the utensils, it will be all obtained from
Lopue’s Department Store.
2.9 Planned Capacity
The Matcha Collective will be operating through a kiosk that will be located on the
second floor of SM City Bacolod Northwing. The business owners are all based in Bacolod City
and for that reason, it will be easier to handle and manage if the business will be located in the
40
place where we are based. The market for Matcha in Bacolod City is not that competitive as
there are no other Matcha-specialized cafes, hence, The Matcha Collective will be seen as a
trailblazer for being one of the first Matcha-specialized cafes located in Bacolod City.
2.10 Future Capacity
The Matcha Collective has a great deal of plans with regards to business expansions and
future development. From a kiosk, the company plans to expand to a location that is able to cater
to The Matcha Collective’s increasing number of customers as well as employees, such as that of
a coffeehouse. Starting from that, the company then plans to move forward with expansions of
branches to be opened in different major cities in the Philippines, specifically Cebu City, Manila
City, Davao City, etc. The Matcha Collective also plans to manufacture finished goods such as
Matcha Drinks sealed in bottles and cans which will be displayed and sold at grocery and
convenience stores.
2.11 Terms and Conditions of Purchase of Equipment
Table 2.6
Fixed
Capital
POS Machine
(1)
Terms and Conditions
No representations or warranties: The Services, the Platform and the Materials are
provided on an “as is” and “as available” basis. All data and/or information
contained in the Platform, the Services or the Materials are provided for
informational purposes only. No representations or warranties of any kind, implied,
express or statutory, including the warranties of non-infringement of third party
rights, title, merchantability, satisfactory quality or fitness for a particular purpose,
are given in conjunction with the Platform, the Services or the Materials. Without
prejudice to the generality of the foregoing, we do not warrant:
(a) the accuracy, timeliness, adequacy, commercial value or completeness of all data
and/or information contained in the Platform, the Services or the Materials;
(b) that the Platform, the Services or that any of the Materials will be provided
uninterrupted, secure or free from errors or omissions, or that any identified defect
41
will be corrected;
(c) that the Platform, the Services or the Materials are free from any computer virus
or other malicious, destructive or corrupting code, agent, program or macros; and
(d) the security of any information transmitted by you or to you through the Platform
or the Services, and you accept the risk that any information transmitted or received
through the Services or the Platform may be accessed by unauthorized third parties
and/or disclosed by us or our officers, employees or agents to third parties
purporting to be you or purporting to act under your authority. Transmissions over
the Internet and electronic mail may be subject to interruption, transmission
blackout, delayed transmission due to internet traffic or incorrect data transmission
due to the public nature of the Internet.
Tin Can Sealer
(1)
When buying an item, you agree to the Rules for Buyers and that:
●
●
●
●
●
you are responsible for reading the full item listing before making a bid or
commitment to buy.
you enter into a legally binding contract to purchase an item (except for
motor vehicles and real estate) when you commit to buy an item or if you
have the winning bid (or your bid is otherwise accepted);
for motor vehicles and real estate, a bid or offer initiates a non-binding
transaction representing a buyer's serious expression of interest in buying
the seller's item and does not create a formal contract between the buyer and
the seller;
we do not transfer legal ownership of items from the seller to the buyer; and
if you purchase an item on an eBay site other than eBay.com.ph, you are
subject to the User Agreement of that other eBay site with respect to that
particular purchase.
2.12 Raw Materials & Cost of Raw Materials
Table 2.7
Ingredients
Dairy Products
CowBell Condensada 300mL
₱25
Nestle Fresh Milk 1000mL
₱74
Nestle All-Purpose Cream 250mL
₱59
Selecta Vanilla Ice Cream 1.5L
Sugar
Matcha
Coffee Beans
Cost Per Product
Brown Sugar 1kg
₱230
₱45
Honey 250ml
₱120
Okadaen Inc. Matcha 1kg
₱585
Benguet Beans 1kg
₱315
Kalinga Beans 1kg
₱315
Mt. Apo Beans 1kg
₱370
Green Bean Coffee Powder 100g
₱190
42
Dried Tea Leaves
Herbs and Spices
Dried rose petals 1kg
₱439
Butterfly pea flower 1kg
₱439
Dried lavender flower 1kg
₱244
Hibiscus flower 1kg
₱439
SJX Cinnamon 250g
₱75
RestoHub Turmeric Powder 250g
₱75
Spice Rack PH Ginger Powder 100g
₱45
Vanilla Extract 120mL
₱80
Mango 1kg
SM Bonus Frozen Strawberry 500g
Fruits
Dragon Fruit 1kg
Water
Cocoa
₱150
₱95
₱200
Lemon 1kg
₱50
Victoria Sparkling Water 500ml
₱39
Mineral Water 20L
₱25
Ricoa Cocoa 1kg
₱427
2.13 Raw Materials Availability
The majority of the raw materials like common grocery goods will be sourced from the
different wholesale and retailing supermarkets in the city like the Consuelo's Supermart, Inc. The
Matcha Collective has some ingredients that are not commonly found in supermarkets, like the
different dried tea leaves, it will be purchased from the Chefs & Bakers Bacolod. The fruits will
be bought from the main supplier of fruits in Bacolod City, in Olympic Marketing, located at San
Sebastian
St.
For the main ingredient, the matcha, it will be ordered from a
wholesaler/manufacturer from Okadaen Inc. in Japan. While for the coffee beans, it will be
sourced from a local farmers/supplier in Benguet.
2.14 Storage and Supplies
The supplies will primarily be stored in one of the owner’s houses since the company still
does not have an office and/or a storage space. The delivered raw materials will also go directly
to the house, then it will be brought to the kiosk before the store opens.
43
2.15 Labor and Cost of Labor
The business will start and open with one counter kiosk at SM City Bacolod Northwing
with the four owners as its beginning employees. The Matcha Collective will also need three
personnel — three baristas. Overall, the business will have seven employees. The remaining four
employees, which are the managers will be not receiving any salary, instead they will be sharing
20% of the net profit for profit sharing.
Table 2.8
Labor
Cost
Barista
₱9,000/month
Total
₱27,000
2.16 Overhead Expenses
Table 2.9
Overhead
Cost per Day
Cost per Month
Electricity
₱33.33
₱1,000
Rent
₱2,000
₱60,000
Water
₱10
₱300
Total
₱61,300
2.17 Pre-operating Expenses
Table 2.10
Legal Permits and Licenses
Department
Expenses
Cost
Dept. of Trade & Industries
DTI Clearance Registration Fee
₱500
Bureau of Internal Revenue
BIR Annual Registration Fee
₱500
44
Documentary Stamp Tax
Mayor’s Office
₱67
Certification Fee
₱100
Books of Account
₱100
Special Books
₱140
Printed Receipts and Invoices (5 booklets)
₱900
Mayor’s Permit Fee
Notary for Business Permit Form
Garbage Collection Fee
₱5,000
₱100
₱2,500
Occupational Police and Health Clearance
₱905
Fire Safety Inspection Fee
₱650
Electrical Inspection Fee
₱850
Barangay
Barangay Clearance
₱800
City Health
Sanitary Permit Fee
₱900
Miscellaneous Fees
Miscellaneous
Total
₱3,000
₱17,012
45
Section 3
ORGANIZATION AND MANAGEMENT PLAN
3.1 Form of Business
The Matcha Collective will be following a sole proprietorship form of business. It is
because it is much simpler to start up this form of business than other business entities due to its
less paperworks, requirements, and fees. In addition, having it as a sole proprietor will allow the
firm to have better decision making and make wiser moves while building up the company. The
head of the business will be selected by the members to be its senior manager. Whereas, the
remaining associates will be appointed to the four departments of the firm — Sales and
Marketing Department, Finance Department, Human Resources Department, and Order
Processing Department.
3.2 Organizational Structure
46
Figure 3
The Matcha Collective has this organizational structure as this will help the company
establish individual responsibilities and chain of commands, especially as a small start-up
business.
Senior Manager
The senior manager must be experienced and dynamic to oversee and regulate all
strategic and business aspects of the company. The senior manager will be responsible for
spearheading strategic decisions and creating a vision for the company’s success.
The senior manager must be innovative, responsible, able to maintain The Matcha
Collective's standard of excellence, and share the values and passion the company holds. The
ideal candidate for this position has a proven track record of effective business leadership,
possesses constant awareness of the competitive landscape in the retail industry, and is able to
successfully direct the company in evolving and keeping up with changes in the food industry.
Responsibilities
● Determining and developing the company’s strategic direction and ensuring all plans are
in line with the vision.
● Overseeing the company’s complete operation and that outcomes are in line with goals.
● Managing and balancing resources for the company.
● Looking out for any risks, problems, or opportunities to improve and taking actions
toward it.
● Making investment decisions that will strengthen business and increase shareholder
value.
47
● Following legal guidelines and maintaining company legality and integrity.
● Establishing a respectful learning environment that will continue to grow and strengthen
the skills of its employees.
● Providing the leadership needed to create a successful company with strong ethics and
values.
Finance Manager
The finance manager will manage and plan the organization’s financial strategy as well as
perform effective risk management. A finance manager holds a crucial role in the operations of
the company, handling all aspects of finance. The finance manager will be responsible for
managing and creating financial actions that will benefit The Matcha Collective.
Responsibilities
● Developing and managing efficient strategies that secure the company’s assets and helps
it reach its financial goals.
● Formulating financial security plans and ensuring
● Overseeing the coordination of fiscal reporting activities and analyzing financial
statements.
● Overseeing all purchasing, banking, and payroll activities of the company and tracking
cash flow.
● Supervising and training financial personnel and other staff on raising awareness and
knowledge of financial management matters.
48
● Investigate cost-effective plans and benefits the company may offer employees to gain
and retain qualified individuals.
● Assessing the company’s financial strengths and weaknesses and providing corrective
actions.
● Advising the executive team in beneficial financial actions and strategies
● Provide the operating manager with an operational budget and cooperating with the
operating manager to achieve
● efficient and productive performance through cost analysis and financial management
support.
Sales & Marketing Manager
The sales and marketing manager is responsible for overseeing the planning,
development and execution of an organization's marketing and advertising initiatives.
Responsibilities
● Marketing strategies to support the company’s overall strategies and objectives.
● “Listening” to the trends of the market and directing the market research efforts of the
company.
● Liaising with other departments to guide a unified approach to customer service,
distribution etc. that meets market demands.
● Defining marketing strategies to support the company’s overall strategies and objectives.
Operating Manager
49
The operating manager must be skilled to secure smooth operations and ensure the
efficiency of the business. He/She will be responsible for day-to-day activities and monitoring
the performance of all divisions and executives. The operating manager will be
second-in-command, working in close tandem with the senior manager.
An operating manager is expected to maintain efficient control of The Matcha
Collective's different operations, be an excellent and tactical leader, and have an effective and
productive work ethic. The candidate must have an exemplary multi-tasking problem-solving,
and people skills. The operating manager must be able to cooperate smoothly with a diverse
range of people, especially the senior manager, and can secure the company’s sustainable growth
and development.
Responsibilities
● Formulating efficient business strategies and effective procedures.
● Monitoring performance of the business and keeping it working toward the company’s
goals.
● Creating policies that encourage growth and promote the company vision.
● Writing and submitting reports to the senior manager.
● Assisting the senior manager in fundraising ventures and any tasks assigned by the senior
manager.
● Overseeing the performance of and mentoring The Matcha Collective's senior leaders.
● Manage relations with partners/vendors.
● Lead and encourage employees to maximum performance and dedication.
● Maintain an environment that is healthy, efficient, and productive in the workplace.
50
3.3 Business Experience and Qualifications of the Entrepreneur
Being the owners, as well as the core management head of the company, the four of us
have taken different business majors that when combined by the workforce and mental power of
the four of us, create a management where we will be handling our field of specialty. The
entrepreneurs have the same alma mater during Junior High School and Senior High School
where we were under the same strand of Accounting, Business and Management. Even before
taking up our respective degrees, we garnered enough knowledge during Senior High School as
we were exposed to business concepts such as accounting, finance, marketing, organization and
management, and such. Being graduates of business majors, we are capable and willing to apply
the theories, practices, and concepts we have learned to The Matcha Collective.
3.4 Business Experience and Qualifications of the Employee
The qualifications and the responsibilities of the employees vary depending on the
position they are applying to. However, employees must be at least a senior high school graduate
and know about the basic and fundamental responsibilities of the position he/she is applying to.
The Matcha Collective will also look deeper on the interpersonal abilities of the employees such
as pleasantly dealing with the customers to ensure satisfaction and also know someone’s
available to help if customers need anything — from answering product questions that meet the
customer’s needs. The employees must also adhere to the strong corporate values and principles
of the The Matcha Collective.
51
3.5 Work Shift Schedule
Presented below is the working shift schedule to the seven employees of The Matcha
Collective including the four managers and three baristas. Each employee is to work six times a
week (42 hrs/week) with one allowable day-off.
Table 3.1
Employees
Sun.
Mon.
Tue.
Wed.
Thurs.
Fri.
Sat.
Zen. B
9:00am to
4:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
4:00pm
to
11:00pm
OFF
OFF
9:00am
to
4:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
9:00am to
4:00pm
4:00pm
to
11:00pm
4:00pm to
11:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
OFF
4:00pm to
11:00pm
4:00pm to
11:00pm
9:00am
to
4:00pm
9:00am to
4:00pm
Crisha V.
9:00am to
4:00pm
4:00pm to
11:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
4:00pm to
11:00pm
9:00am
to
4:00pm
9:00am to
4:00pm
Barista 1
4:00pm to
11:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
OFF
9:00am to
4:00pm
4:00pm to
11:00pm
9:00am to
4:00pm
9:00am to
4:00pm
4:00pm to
11:00pm
OFF
9:00am to
4:00pm
OFF
4:00pm to
11:00pm
9:00am to
4:00pm
4:00pm to
11:00pm
Jason D.
Kylene S.
Barista 2
Barista 3
OFF
4:00pm to
11:00pm
4:00pm
to
11:00pm
9:00am to
4:00pm
4:00pm
to
11:00pm
9:00am to
4:00pm
3.6 Code of Ethics
3.6.1 Code of Ethics of the Company
● Accountability. The Matcha Collective will be fully accountable for all of its business
decisions, behaviour, and actions/inactions and we will carry out our responsibilities
52
and roles with the utmost integrity, fairness, commitment, and performance. The
Matcha Collective owe it to the Company and its stakeholders to represent them to the
best of our abilities.
● Conduct of Business. The Matcha Collective is run by free competition whereas The
Matcha Collective will have no manipulations in prices. Supply and demand will
determine the price of our products.
●
Conflict of Resolution. The Matcha Collective will settle legally in compliance with
the procedures for administrative investigations.
● Compliance with Laws and Regulations. The Matcha Collective will ensure that all
business transactions and relationships are legitimate, free of influence, and bribery.
We respect and uphold applicable laws to the best of the company’s abilities.
● Fairness. The company will uphold the value of fairplay among everyone related to
the business, may it be internally or externally.
● Food safety. It is our top priority to provide safe and quality food and beverages
towards our customers ensuring that food protection is still prioritized over financial
considerations. The Matcha Collective will strictly follow the proper handling,
labelling and storage of food and beverages.
● Integrity. The company will behave in a moral, lawful, and ethical manner. We will
follow the plain truth that "honesty is the best policy" and strive to behave in
accordance with the highest ethical principles.
● Transparency. The Matcha Collective values transparency towards our customers
through providing Social Impact reports and Transparency reports that will be posted
53
through our Social Media accounts. Through this we show that we put importance in
the customers’ trust towards us.
3.6.2 Ethical Practices and Policies Towards
● Managers
1. The managers will make sure to check the employees if there are any problems or
conflicts to help solve the problem.
2. We will promote a culture and tradition of good corporate governance.
3. Maintain and safeguard the confidentiality of information entrusted.
4. Managers must reflect professionalism and integrity in the workplace as they are the role
models in the company.
● Employees
1. The employees must protect The Matcha Collective’s legality.
2. Employees should treat one another/ their colleagues with respect and dignity as they are
given equal opportunity. The company does not tolerate any form of
harassment,
discriminatory behavior or victimization.
3. All the employees should treat The Matcha Collective’s property - may it be tangible or
intangible, with care.
4. The employees must follow the company’s dress code and personal appearance
guidelines.
5. Open for communication with the colleagues, managers or team members is being
promoted.
54
6. Everyone must fulfill their duties and responsibilities with integrity and respect towards
the people they are serving.
7. Employees are expected to follow managers’ instructions and complete their tasks in a
timely manner.
8. Employees should follow their schedule.
9. Employees should read and follow The Matcha Collective’s policies.
10. Employees are provided with a healthy and safe environment.
● Suppliers
1. The company will deal fairly with the suppliers.
2. The Matcha Collective will not take unfair advantage towards the suppliers through abuse
of privileged information, unfair dealing practices, manipulation, etc.
3. Suppliers are to communicate openly to the company.
4. Establish and maintain a sense of loyalty to the suppliers.
● Customers
1. Must treat each customer with respect and hospitality.
2. Provide the exact order of the customers.
3. Understand and resolve the complaints of the customers and make changes in a legal
process.
4. The company will ensure the privacy of the customers with regards to any confidential
information shared.
5. Customers must be treated fairly, without any special treatment.
● Investors
1. We aim to provide profitability towards our shareholders.
55
2. We will publicly disclose all public information such as balance sheets, earnings reports,
business policy, and related party.
3. Respect will be given to our shareholders to earn their trust and loyalty to the company.
4. The Matcha Collective will make sure to be transparent to our shareholders to avoid
having conflicts.
5. We seek to return a fair amount of profit to our shareholders.
● Competitors
1. Compete with ethical ways with other competitors showing how professional The Matcha
Collective is.
2. Competing fairly with other competitors will surely be appreciated by the other
businesses including The Matcha Collective.
3. The Matcha Collective will show their competitors how matured they are when it comes
to competing with ethical ways.
4. The Matcha Collective will not copy similar products from our competitors. We will
make sure that our products are uniquely made.
● Other Stakeholders
1. The Matcha Collective will be open and transparent for suggestions coming from them.
2. Will make sure to earn their trust as they earn ours.
3. Keeping our hands clean when it comes to business.
3.6.3 The Obstacles
The Matcha Collective strives to be an ethical company as much as possible by putting
into live practice and living in the ethical standards of the business in its daily operations, as well
56
as minimizing situations where one’s moral principles are being tempted. However, it is
inevitable that there will be enticing circumstances that can possibly hinder The Matcha
Collective to be a fully ethical business.
-
The most apparent obstacle The Matcha Collective will face as a small start-up business
is the lack of funds to maintain both the business operation and the CSR strategies and
activities. The business will be facing dilemmas pertaining to the business operations or
the “main” goal of a business, which is to maximize profits and the ethical obligations the
business strives to serve to the society — there is a big possibility that there will be
clashes between business and morality.
-
Lack of hospitality and understanding of an individual or employee when the trouble or
complaints are heavy. Some individuals have that mindset of having a hard time
understanding the situation which makes them increase their pride and affects the image
of the business of not being an ethical business.
-
The discrimination among/between employees and customers can be an obstacle for the
business as individuals have their own set of moral values and beliefs. It would be
difficult for the company to control especially customers’ behavior towards The Matcha
Collective as it is beyond our control.
-
The intense and sometimes unfair competition in the saturated market can lead the
business to compromise in terms of compatibility of standards and values among the
different actors in the business in order to attain/attract the highest profitability.
57
3.7 Corporate Social Responsibility and Community Involvement
The Matcha Collective’s Corporate Social Responsibility is a reflection of our
commitment as a company that goes beyond our business objectives and goals. Our company
strives hard to not only be a business but also be a responsible and ethical member in the
community. We aim to operate in a sustainable manner which benefits the economy, society, and
environment. As the company grows, we still plan to execute in such a manner while also putting
the interests of our stakeholders in mind. The Matcha Collective’s plan for Corporate Social
Responsibility — more than just philanthropic events, our business process and operation
process; from supply chains to packaging will benefit society themselves.
3.7.1 CSR Mission Statement
Our mission is to support a sustainable society and economy through means of
sustainable operations, supply chains, and minimization of our carbon and environmental
footprint. The Matcha Collective strives to buy, sell, and use environmentally friendly products
and support local farmers through means of fair and direct trade. The company instills social and
environmental responsibility as a corporate value. The Matcha Collective treats CSR as a
necessity in order to preserve a world for the generations to come.
3.7.2 CSR Vision Statement
To offer ethically-sourced products and charitable volunteering in the community in order
to ensure sustainability, and socially and environmentally conscious business operations and
decisions for the betterment of the society, environment, and the economy.
58
3.7.3 Ethical Strategies Corporate Social Responsibility Activities
The Matcha Collective aims to make a positive contribution to the community. As we
value and aim towards being a good corporate citizen.
Ethical Sourcing
The Matcha Collective will ensure that its raw materials are obtained through sustainable
and responsible methods. The two main raw materials that The Matcha Collective has are
Matcha powder and Coffee beans. The Matcha powder will be sourced straight from Japan, as
Matcha is primarily grown there, whereas the coffee beans will be sourced from local farmers in
the CAR region as beans such as Benguet, Mt. Apo, and Kalinga are grown primarily in the
upland farms in the said region. We chose suppliers that have ethical practices towards their
farmers, and not the overly commercialized farms. The Matcha Collective aims to partner with
suppliers whose farms don't adversely affect its environment and whose management doesn’t
exploit its farmers.
Farmer Trainings/Workshops
Second to the planet as our business’ most important partner are the farmers — our main
raw materials, matcha and coffee beans lie within the farmers’ hands. Not only are farmers
important to us but to everyone in the society as well. Through this CSR project that benefits
farmers, we can create a much educated environment for local farmers which is really good for
the local economy of Negros Occidental if the farmers get to produce wisely from the practices
learned from the training. This also promotes farming as an occupation, enticing people from
different backgrounds to start farming as a business. Farming not only benefits the society — it
also benefits the environment. And as a business, this initiative also helps us to ensure choices of
59
suppliers which produce high-quality products that we can source locally. We can also integrate
our partnership with Greenpeace Philippines regarding the promotion of ecological farming
through this CSR initiative.
Donating/Giving out of unsold products
The Matcha Collective promotes freshness in the daily goods it serves to the customers to
ensure quality and better consuming experience. This will be done through maintaining a right
amount of inventory stocking level to minimize food waste as well as leftovers and also
disposing of unsold goods. In light of food waste, as part of the CSR activity of the company, it
will be sharing/giving out the perishable excess unsold food (2-3 days old products) to
organizations of homeless or hungry people in the streets that are still consumable and safe for
human consumption. This allows the company to encourage limiting food waste aligning it with
corporate social responsibility.
Planting Trees
The Matcha Collective will contribute to the environment by planting trees as our main
ingredient came from a plant. This will help lessen the flood in a certain area where the trees are
planted. This project will also help to have a better environment and to lessen the pollution and
replace it with greeneries. Showing appreciation for the trees and other kinds of plants are also
showing how ethical and respectful is The Matcha Collective to the environment.
Supporting Charities
Helping charities is one way of contributing to the community. We can donate a pack of
goods to the charities that need help. The Matcha Collective can do this thrice in a year or
towards cities and communities that have suffered due to natural causes such as storms. Because
of this, people that were damaged by the storm can start over again.
60
Promoting Sustainability
Promoting sustainability can make a great impact in the waste management of Bacolod
City. As there are a lot of consumers using plastic containers, the effects of waste generated by
our cups can contribute to the adverse environmental impact. The Matcha Collective is dedicated
to reducing the amount of waste generated by our cups. This encouragement can have a
significant impact in Bacolod City. We will be giving discounts to customers who bring their
own reusable cups for their purchased beverages. Through this encouragement, the customers
and the environment will benefit from this promotion since our goal is to collaborate with others
to enhance and improve the recycling system in the communities where we operate.
3.7.4 Possible Partnerships
Coffee Culture can help us by using their coffee beans for our coffee based products.
Coffee Culture is one of the best cafes in the city of Bacolod.
Online Food Delivery Apps can make our business available for delivery anywhere in
Bacolod. Through their platform, customers would be able to order online and have their order
through their doorstep.
The Matcha collective can partner with environmental NGOs, among them is
Greenpeace Philippines — their main goal is to protect nature from environmental threats such
as perilous waste imports, coal projects, and illegal logging. As The Matcha Collective is part of
the industry that concerns the environment — its natural resources, we can partner with
Greenpeace Philippines to promote ecological farming through campaigns against land, air, and
water pollution. This partnership does not only show how socially-minded we are as a business
but also benefits us in a way where a better environment directly serves us with better crops and
61
resources, thus leading to better produce which is definitely important when it comes to a
business such as The Matcha Collective. As we believe that the planet and its environment is our
business' most important business partner.
The Matcha Collective can create partnerships with some food banks in the city just like
the Mingoy NVC’s food shuttle which is an outlet of Good Food Grocer that feeds hungry
children in the Philippines as it encourages good nutrition. Since it roams around the Philippines,
the company can provide support by giving monetary donations or provide its goods whenever it
is here in the city. In this way, it can make the donating operations of the company easier and
most especially enhance The Matcha Collective’s good image as it addresses a social issue
connecting it with the company’s strategies.
The Matcha Collective can possibly partner with the local suppliers of our products may
it be in the Philippines or outside the country just like the Okadaen Inc., Chefs & Bakers
Bacolod, Olympic Marketing, Consuelo's Supermart Inc. and more. The particular reason for the
circumstance is to lessen the hassle on finding matcha stocks on different suppliers as well as
other ingredients needed for our products. Having a supplier will ensure that we will have
enough stocks and will not have lacking ingredients while serving the customers, this would
lessen the frustration to the customers if they are not served with what they have ordered in the
menu because of insufficient raw materials. The Matcha Collective will try its best to find a
legitimate supplier of matcha and other ingredients in or outside the country.
62
Section 4
FINANCIAL PLAN
4.1 Project Cost
Table 4.1
Expense
Cost
Marketing Budget
Store Equipment & Furniture
₱8,270
₱201,094
Legal Permits and Licenses
₱17,012
Electricity
₱1,000
Rent
₱60,000
Water
₱300
Direct Materials
₱167,690.70
Total
₱455,816.70
4.2 Financing Plan
The Matcha Collective will apply to Security Bank for a loan. This loan is made for small
and medium sized businesses to fund short-term requirements, such as supplies, office space, or
cash for day-to-day operations. We intend to borrow P350,000, which will be paid back in a year.
We will pay P32,088 per month, for a cumulative payment of P35,055.97 after one year.
Basic Requirements
●
Permanent residency in the Philippines;
●
At least 21 years of age at the time of application and not more than 65 years of age
upon maturity of the loan
●
Duly registered to operate as a business in the Philippines
Document Requirements
●
Signed and Completed Application Form
63
●
Copy of 2 valid IDs with photo from primary applicant / owner / authorized signatory
●
Latest ITR with BIR stamp
●
Latest (1) year Audited Financial Statements
●
Valid DTI Registration docs
●
Latest 3 months bank statement
●
List of customers/suppliers and details about their dealingsValid Business or Mayor’s
Permit
4.3 Loan Repayment Schedule
Principal = 350,000
Interest
=1. 50%
Term
= 1 x 12
R=
350,000 (1+(1.50%))
(1+(1.50%))
12
(1.50%)
12
−1
R = ₱32,088
= 12
R=
𝑃(1+𝑖)
(1+𝑖)
𝑛
𝑛
𝑖
−1
Table 4.2
Month
Beginning
Balance
Monthly
Payment
Interest Payment Applied Principle
Balance
₱350,000
1
₱350,000
₱32,088
₱5,250
₱26,838
₱323,162
2
₱323,162
₱32,088
₱4,847
₱27,241
₱295,921
3
₱295,921
₱32,088
₱4,439
₱27,649
₱268,272
4
₱268,272
₱32,088
₱4,024
₱28,064
₱240,208
5
₱240,208
₱32,088
₱3,603
₱28,485
₱211,723
6
₱211,723
₱32,088
₱3,176
₱28,912
₱182,811
7
₱182,811
₱32,088
₱2,742
₱29,346
₱153,465
8
₱153,465
₱32,088
₱2,302
₱29,786
₱123,679
9
₱123,679
₱32,088
₱1,855
₱30,233
₱93,447
10
₱93,447
₱32,088
₱1,402
₱30,686
₱62,760
11
₱62,760
₱32,088
₱941
₱31,147
₱31,614
12
₱31,614
₱32,088
₱474
₱31,614
₱0
64
4.4 Security for Loan
If ever Matcha Collective faces uncertainties wherein it will be put into positions where it
is unable to pay the loan, the team has decided that the Ayala Corporation stock shares of our
Sales and Marketing Manager would be used as collateral for the loan. In this way, The Matcha
Collective will be able to work in order to be stable and to be able to pay off all of our
obligations and debts.
4.5 Operating Budget
4.5.1 Sales Budget7
Table 4.3
The Matcha Collective
Summary Sales Budget
For First Quarter Ending 2026
Desserts Total
September
October
November
₱67,950.00
₱64,380.00
Beverages Total ₱699,900.00 ₱686,000.00
Grand Total
₱767,850.00 ₱750,380.00
Sales for the First
Quarter Ending 2021
₱61,690.00
For Second Quarter Ending 2027
December
₱63,770.00
January
February
₱60,370.00
₱59,815.000
₱697,600.00 ₱785,300.00 ₱722,100.00
₱727,400.00
₱759,290.00 ₱849,070.00 ₱782,470.00
₱787,215.00
₱2,277,520.00
Sales for the Second
Quarter Ending 2021
₱2,418,755.00
4.5.2 Purchases Budget8
Table 4.4
The Matcha Collective
Purchases Budget
For First Quarter Ending 2026
September
7
8
October
November
For Second Quarter Ending 2027
December
January
February
Appendix C
Appendix G
65
₱59,100.00
₱56,150.00
₱54,475.00
₱108,590.70 ₱111,158.00
₱116,196.80
Desserts Total
Beverages Total
Grand Total
₱167,690.70
₱167,308
Purchases for First
Quarter Ending 2026
₱37,650.00 ₱35,625.00
₱35,025.00
₱142,626.00 ₱126,916.40 ₱132,842.10
₱170,671.8
₱180,276 ₱162,541.4
Purchases for Second
Quarter Ending 2027
₱505,670.5
₱167,867.1
₱510,684.50
4.5.3 Cash Budget9
Table 4.5
The Matcha Collective
Cash Budget
For the 1st Quarter Ending
November 2026
Beginning cash balance
For the 2nd Quarter Ending
February 2027
₱450,000.00
₱1,225,929.58
Add: Collections from customers
₱2,277,520.00
₱2,418,755.00
Total cash
₱2,727,520.00
₱3,644,684.58
Loan Payment - Principal
₱81,728.00
₱85,461.00
Loan Payment - Interest
₱14,536.00
₱10,803.00
Raw Materials Purchases
₱277,847.10
₱394,061.85
₱98,415.00
₱109,702.50
Tax (paid quarterly)
₱182,851.00
₱182,851.00
Salaries and Wages
₱81,000.00
₱81,000.00
₱180,000.00
₱180,000.00
₱3,900.00
₱3,900.00
Packaging
₱97,692.40
₱105,377.60
Marketing Budget
₱20,810.00
₱18,810.00
₱201,094.00
-
₱17,012.00
-
Total disbursements
₱1,256,885.50
₱1,171,966.95
Excess (Deficiency) of Cash Available
₱1,470,634.50
₱2,472,717.63
₱244,704.92
₱264,482.08
₱1,225,929.58
₱2,208,235.56
Less: Cash disbursements
Merchandise Purchases
Rent Expense
Utilities
Store Equipment & Furniture
Legal Permits and Licenses
Profit Sharing
Cash Balance at End of Month
9
Appendix H
66
4.6 Income Statement10
Table 4.6
The Matcha Collective
Budgeted Statement of Comprehensive Income
For the 1st Quarter Ending
November 2026
Sales
For the 2nd Quarter Ending
February 2027
2,277,520.00
2,418,755.00
Raw Materials Purchases
335,945.50
402,384.50
Merchandise Purchases
117,330.00
108,300.00
81,000.00
81,000.00
1,198.50
1,273.50
97,692.40
105,377.60
633,166.40
698,335.60
1,644,353.60
1,720,419.40
180,000.00
180,000.00
Depreciation
2,918.52
2,918.52
Utilities
2,701.50
2,626.50
Marketing Budget
20,810.00
18,810.00
Legal Permits and Licenses
17,012.00
- .00
223,442.02
204,355.02
1,420,911.58
1,516,064.38
14,536.00
10,803.00
Tax Expense
182,851.00
182,851.00
Total Interest and Tax Expense
197,387.00
193,654.00
1,223,524.58
1,322,410.38
Less: Profit Sharing
244,704.92
264,482.08
Net Profit closed to capital
978,819.66
1,057,928.30
Less: Cost of goods sold
Salaries and Wages
Utilities (Direct Cost)
Packaging
Total Direct Cost
Contribution margin
Less: Fixed Expenses
Rent
Total Fixed Expenses
Net Operating Income/EBIT
Loan Payment - Interest Expense
Net Income Before Profit Sharing
10
Appendix I
67
4.7 Balance Sheet11
Table 4.7
The Matcha Collective
Budgeted Statement of Financial Position
Assets
For the 1st Quarter Ending
November 2026
For the 2nd Quarter Ending
February 2027
Current Assets
Cash
₱1,225,929.58
₱2,208,235.56
Total Current Assets
₱1,225,929.58
₱2,208,235.56
₱201,094.00
₱201,094.00
₱2,918.52
₱5,837.04
₱198,175.48
₱195,256.96
₱1,424,105.06
₱2,403,492.52
Accounts payable-Raw Materials
₱58,098.40
₱66,421.05
Accounts payable-Merch Purchases
₱18,915.00
₱17,512.50
₱350,000.00
₱268,272.00
₱81,728.00
₱85,461.00
Net loan payable
₱268,272.00
₱182,811.00
Total Liabilities
₱345,285.40
₱266,744.55
Owner's capital, Beg.
₱100,000.00
₱1,078,819.66
Add: Net profit closed to capital
₱978,819.66
₱1,057,928.30
Owner's capital, End.
₱1,078,819.66
₱2,136,747.97
Total Liabilities and owner's capital
₱1,424,105.06
₱2,403,492.52
Non Current Assets
Store Equipment & Furniture
Less: Accumulated Depreciation
Net Book Value
Total Assets
Liabilities and owner's capital
Loan
Less: Loan repayment - principal
11
Appendix J
68
4.8 Break-Even Point (BEP)
Table 4.8
The Matcha Collective
Break-Even Point Beverages
Months
Fixed
Expenses
Selling Price
Per Unit
Variable Cost
Per Unit
Contribution
Margin
BEP in Units
BEP in
Pesos
Sept.
₱87,145.34
₱85.46
₱20.23
₱65.23
1,336.04 ₱114,175.01
Oct.
₱68,151.34
₱86.07
₱20.97
₱65.10
1,046.82
₱90,102.49
Nov.
₱68,145.34
₱86.55
₱21.39
₱65.16
1,045.76
₱90,511.78
Dec.
₱68,095.84
₱86.20
₱20.83
₱65.38
1,041.61
₱89,788.41
Jan.
₱68,130.34
₱85.96
₱20.40
₱65.56
1,039.13
₱89,328.27
Feb.
₱68,128.84
₱86.39
₱20.88
₱65.51
1,039.96
₱89,842.00
Table 4.9
The Matcha Collective
Break-Even Point Desserts
Months
Fixed
Expenses
Selling Price
Per Unit
Variable Cost
Per Unit
Contribution
Margin
BEP in
Units
BEP in
Pesos
Sept.
₱87,145.34
₱43.84
₱25.87
₱17.97
4,850.10 ₱212,622.11
Oct.
₱68,151.34
₱43.50
₱25.56
₱17.94
3,798.30 ₱165,226.26
Nov.
₱68,145.34
₱43.14
₱25.38
₱17.76
3,838.04 ₱165,572.51
Dec.
₱68,095.84
₱44.28
₱26.15
₱18.14
3,754.14 ₱166,250.83
Jan.
₱68,130.34
₱43.75
₱25.82
₱17.93
3,799.55 ₱166,216.55
Feb.
₱68,128.84
₱43.19
₱25.29
₱17.90
3,806.31 ₱164,385.90
Table 4.10
The Matcha Collective
Break-Even Point
Months
Fixed
Expenses
Selling Price
Per Unit
Variable Cost
Per Unit
Contribution
Margin
BEP in
Units
BEP in Pesos
Sept.
₱87,145.34
₱129.30
₱46.10
₱83.19
1,047.49 ₱135,436.92
Oct.
₱68,151.34
₱130.05
₱46.53
₱83.52
815.95 ₱106,114.87
Nov.
₱68,145.34
₱129.69
₱46.77
₱82.92
821.84 ₱106,584.46
Dec.
₱68,095.84
₱130.49
₱46.97
₱83.51
815.37 ₱106,395.58
Jan.
₱68,130.34
₱129.71
₱46.21
₱83.50
815.97 ₱105,840.43
Feb.
₱68,128.84
₱129.58
₱46.17
₱83.41
816.80 ₱105,838.40
69
4.9 Margin of Safety
Table 4.11
The Matcha Collective
Margin of Safety Beverages
Months
Budgeted
Sales
Sales Required
In Peso
In Percent
In Units
Sept.
₱69,9900
₱114,175.01
₱585,724.99
₱83.69
6,853.96
Oct.
₱68,6000
₱90,102.49
₱595,897.51
₱86.87
6,923.18
Nov.
₱69,7600
₱90,511.78
₱607,088.22
₱87.03
7,014.24
Dec.
₱78,5000
₱89,788.41453
695211.5855
88.56198541
8,068.39
Jan.
₱72,2100
₱89,328.26838
632771.7316
87.62937704
7,360.87
Feb.
₱72,7400
₱89,842.00
₱637,558.00
₱87.65
7,380.04
Table 4.12
The Matcha Collective
Margin of Safety Desserts
Months
Budgeted
Sales
Sales Required
In Peso
In Percent
In Units
Sept.
67950
₱212,622.11
-₱144,672.11
-₱212.91
-3,300.10
Oct.
64380
₱165,226.26
-₱100,846.26
-₱156.64
-2,318.30
Nov.
61690
₱165,572.51
-₱103,882.51
-₱168.39
-2,408.04
Dec.
63770
₱166,250.83
-₱102,480.83
-₱160.70
-2,314.14
Jan.
60370
₱166,216.55
-₱105,846.55
-₱175.33
-2,419.55
Feb.
59815
₱164,385.90
-₱104,570.90
-₱174.82
-2,421.31
Table 4.13
The Matcha Collective
Margin of Safety
Months
Budgeted
Sales
Sales Required
In Peso
In Percent
In Units
Sept.
767850
₱135,436.92
₱632,413.08
₱82.36
8,692.51
Oct.
750380
₱106,114.87
₱644,265.13
₱85.86
8,634.05
Nov.
759290
₱106,584.46
₱652,705.54
₱85.96
8,668.16
70
Dec.
849070
₱106,395.58
₱742,674.42
₱87.47
9,734.63
Jan.
782470
₱105,840.43
₱676,629.57
₱86.47
8,964.03
Feb.
787215
₱105,838.40
₱681,376.60
₱86.56
8,988.20
4.10 Financial Analysis
4.10.1 Horizontal Analysis
4.10.1.1 Statement of Financial Position Horizontal Analysis
Table 4.14
The Matcha Collective
Budgeted Statement of Financial Position
For the 1st Quarter Ending November 2026 and 2nd Quarter Ending February 2027
Increase or Decrease
Accounts
2nd Quarter
1st Quarter
Amount
Percent
Assets
Current Assets
Cash
₱2,208,235.56 ₱1,225,929.58
₱982,305.97
80.13%
Total Current Assets
₱2,208,235.56 ₱1,225,929.58
₱982,305.97
80.13%
Non Current Assets
Store Equipment & Furniture
Less: Accumulated Depreciation
Net Book Value
Total Assets
₱201,094.00
₱201,094.00
₱0.00
0.00%
₱5,837.04
₱2,918.52
₱2,918.52
100.00%
₱195,256.96
₱198,175.48
-₱2,918.52
-1.47%
₱2,403,492.52 ₱1,424,105.06
₱979,387.45
68.77%
Liabilities and owner's capital
Accounts payable-Raw Materials
₱66,421.05
₱58,098.40
₱8,322.65
14.33%
Accounts payable-Merch Purchases
₱17,512.50
₱18,915.00
-₱1,402.50
-7.41%
₱268,272.00
₱350,000.00
-₱81,728.00
-23.35%
₱85,461.00
₱81,728.00
₱3,733.00
4.57%
Net loan payable
₱182,811.00
₱268,272.00
-₱85,461.00
-31.86%
Total Liabilities
₱266,744.55
₱345,285.40
-₱78,540.85
-22.75%
Owner's capital, Beg.
₱1,078,819.66
₱100,000.00
₱978,819.66
978.82%
Add: Net profit closed to capital
₱1,057,928.30
₱978,819.66
₱79,108.64
8.08%
Owner's capital, End.
₱2,136,747.97 ₱1,078,819.66 ₱1,057,928.30
98.06%
Total Liabilities and owner's capital
₱2,403,492.52 ₱1,424,105.06
68.77%
Loan
Less: Loan repayment - principal
₱979,387.45
71
Significant Findings:
1st - 2nd Quarter
Provided with the comparative statement of financial position of The Matcha Collective,
it is evident that there are multiple increases in the values of the accounts. Just like in the total
assets of the company, there is an escalation of 66.77% in its value over one quarter. This
increase could be traced back to the huge sales of the company in the second quarter of its
operations since numerous customers purchase through online food delivery applications as well
as the first two operating quarters of The Matcha Collective contains multiple holidays and
breaks enabling the customers to discover and buy/order from the business. With a small
percentage of profit sharing among the managers, which is 20% of the net profit also contributed
to the leap in the cash. Moreover, the amount of the loan of the company decreases as it repays
with increasing loan principal repayment on time. Therefore, the remaining payable decreased by
31.86%.
4.10.1.2 Statement of Comprehensive Income Horizontal Analysis
Table 4.15
The Matcha Collective
Budgeted Statement of Comprehensive Income
For the 2nd Quarter Ending February 2027
Increase or Decrease
Accounts
Sales
2nd Quarter
1st Quarter
₱2,418,755.00 ₱2,277,520.00
Amount
Percent
₱141,235.00
6.20%
Less: Cost of goods sold
Raw Materials Purchases
₱402,384.50
₱335,945.50
₱66,439.00
19.78%
Merchandise Purchases
₱108,300.00
₱117,330.00
-₱9,030.00
-7.70%
₱81,000.00
₱81,000.00
₱0.00
0.00%
₱1,273.50
₱1,198.50
₱75.00
6.26%
₱105,377.60
₱97,692.40
₱7,685.20
7.87%
Salaries and Wages
Utilities (Direct Cost)
Packaging
72
Total Direct Cost
Contribution margin
₱698,335.60
₱633,166.40
₱65,169.20
10.29%
₱1,720,419.40 ₱1,644,353.60
₱76,065.80
4.63%
Less: Fixed Expenses
Rent
₱180,000.00
₱180,000.00
₱0.00
0.00%
Depreciation
₱2,918.52
₱2,918.52
₱0.00
0.00%
Utilities
₱2,626.50
₱2,701.50
-₱75.00
-2.78%
₱18,810.00
₱20,810.00
-₱2,000.00
-9.61%
₱0.00
₱17,012.00
-₱17,012.00
-100.00%
₱204,355.02
₱223,442.02
-₱19,087.00
-8.54%
₱1,516,064.38 ₱1,420,911.58
₱95,152.80
6.70%
Marketing Budget
Legal Permits and Licenses
Total Fixed Expenses
Net Operating Income/EBIT
Loan Payment - Interest Expense
₱10,803.00
₱14,536.00
-₱3,733.00
-25.68%
Tax Expense
₱182,851.00
₱182,851.00
₱0.00
0.00%
Total Interest and Tax Expense
₱193,654.00
₱197,387.00
-₱3,733.00
-1.89%
₱1,322,410.38 ₱1,223,524.58
₱98,885.80
8.08%
Net Income Before Profit Sharing
Less: Profit Sharing
Net Profit closed to capital
₱264,482.08
₱244,704.92
₱19,777.16
8.08%
₱1,057,928.30
₱978,819.66
₱79,108.64
8.08%
Significant Findings:
1st - 2nd Quarter
Based on the Statement of Comprehensive income above, the sales of The Matcha
Collective increased by 6.20%. In relation to this, the amount of purchases in the merchandise
and raw materials as well as other inputs also increased as it has a direct relationship. Thus its net
profit also rises. Tax expenses remain the same since the company pays it taxes every quarter. In
addition, managers get to have a higher fraction of salary from the profit sharing because of the
increase in its sales.
4.10.2 Vertical Analysis
73
4.10.2.1 Statement of Financial Position Vertical Analysis
Table 4.16
The Matcha Collective
Budgeted Statement of Financial Position
For the 1st Quarter Ending November 2026 and 2nd Quarter Ending February 2027
2nd Quarter
Accounts
Amount
1st Quarter
Percent
Amount
Percent
Assets
Current Assets
Cash
₱2,208,235.56
91.88% ₱1,225,929.58
86.08%
Total Current Assets
₱2,208,235.56
91.88% ₱1,225,929.58
86.08%
Non Current Assets
Store Equipment & Furniture
Less: Accumulated Depreciation
Net Book Value
Total Assets
₱201,094.00
8.37%
₱201,094.00
14.12%
₱5,837.04
0.24%
₱2,918.52
0.20%
₱195,256.96
8.12%
₱198,175.48
13.92%
100.00% ₱1,424,105.06
100.00%
₱2,403,492.52
Liabilities and owner's capital
Accounts payable-Raw Materials
₱66,421.05
2.76%
₱58,098.40
4.08%
Accounts payable-Merch Purchases
₱17,512.50
0.73%
₱18,915.00
1.33%
₱211,723.00
8.81%
₱350,000.00
24.58%
₱28,912.00
1.20%
₱81,728.00
5.74%
Net loan payable
₱182,811.00
7.61%
₱268,272.00
18.84%
Total Liabilities
₱266,744.55
11.10%
₱345,285.40
24.25%
₱1,893,949.84
78.80%
₱100,000.00
7.02%
₱242,798.13
10.10%
₱978,819.66
68.73%
Loan
Less: Loan repayment - principal
Owner's capital, Beg.
Add: Net profit closed to capital
Owner's capital, End.
₱2,136,747.97
88.90% ₱1,078,819.66
75.75%
Total Liabilities and owner's capital
₱2,403,492.52
100.00% ₱1,424,105.06
100.00%
Significant Findings:
1st Quarter
In the 1st quarter, its total equity or the ending owner's capital amounts to more than 50%
of the firm's total assets (75.75%) which signifies the firm’s actions being geared towards equity.
The current assets constituting 86.08% of the firm’s total assets contributes to the firm’s business
74
decisions and actions being oriented towards equity rather than investments. The current assets
also signifies that almost all of the firm’s assets are liquid — this gives the firm opportunities to
invest the money or purchase additional Property, Plant and Equipment Assets. The high
proportion of current assets signifies the firm’s strong capability to maintain working capital
position and ability to meet its near-term obligations.
The firm being a business that only manufactures drinks in a small kiosk explains the
small percentage (14.12%) of Non Current Assets or Property, Plant, and Equipment Assets.
When the firm plans to expand through opening additional branches, there would be a significant
increase in the firm’s Non Current Assets percentage.
2nd Quarter
In the 1st quarter, its total equity or the ending owner's capital amounts to more than 50%
of the firm's total assets (88.90%) which signifies the firm’s actions being oriented towards
equity. Its investments in non-current assets decreased by 5.75% from the previous quarter. This
also explains the 5.8% increase in the firm’s total assets which only constitutes the Cash account.
The firm’s equity also increased by 13.15%, this means that the firm’s profitability is higher
during these months (December, January, February) which could be explained by the higher
amounts of holidays, school breaks, and events which also means more people going to the malls
during the said months.
The firm being a business that only manufactures drinks in a small kiosk explains the
small percentage (8.37%) of Non Current Assets or Property, Plant, and Equipment Assets, with
a 5.75% decrease, this means that the firm have not invested more on the said PPE assets and
was decreased due to Accumulated depreciation from the previous quarter’s bought Store
75
Equipment and Furniture. When the firm plans to expand through opening additional branches,
there would be a significant increase in the firm’s Non Current Assets percentage.
Conclusion:
The Vertical analysis has shown that the firm is currently oriented towards building assets
and equity, since both accounts amount to more than 50% of the firm’s total assets. Both quarters
have also signified that almost all of the firm’s assets are liquid since the current assets constitute
around 3/4ths of the firm’s total assets. This suggests that the firm is currently doing operations
in a constant manner as it is a start-up business — testing the profitability first before venturing
into large-scale capital projects and investments.
4.10.2.2 Statement of Comprehensive Income Vertical Analysis
Table 4.17
The Matcha Collective
Budgeted Statement of Comprehensive Income
For the 2nd Quarter Ending February 2027
2nd Quarter
Accounts
Sales
Amount
₱2,418,755.00
1st Quarter
Percent
Amount
100.00% ₱2,277,520.00
Percent
100.00%
Less: Cost of goods sold
Raw Materials Purchases
₱402,384.50
16.64%
₱335,945.50
14.75%
Merchandise Purchases
₱108,300.00
4.48%
₱117,330.00
5.15%
₱81,000.00
3.35%
₱81,000.00
3.56%
₱1,273.50
0.05%
₱1,198.50
0.05%
Packaging
₱105,377.60
4.36%
₱97,692.40
4.29%
Total Direct Cost
₱698,335.60
28.87%
₱633,166.40
27.80%
71.13% ₱1,644,353.60
72.20%
Salaries and Wages
Utilities (Direct Cost)
Contribution margin
₱1,720,419.40
Less: Fixed Expenses
Rent
₱180,000.00
7.44%
₱180,000.00
7.90%
76
Depreciation
₱2,918.52
0.12%
₱2,918.52
0.13%
Utilities
₱2,626.50
0.11%
₱2,701.50
0.12%
0.78%
₱20,810.00
0.91%
Marketing Budget
₱18,810.00
Legal Permits and Licenses
Total Fixed Expenses
Net Operating Income/EBIT
Loan Payment - Interest Expense
₱17,012.00
₱204,355.02
₱1,516,064.38
8.45%
₱223,442.02
9.81%
62.68% ₱1,420,911.58
62.39%
₱10,803.00
0.45%
₱14,536.00
0.64%
Tax Expense
₱182,851.00
7.56%
₱182,851.00
8.03%
Total Interest and Tax Expense
₱193,654.00
8.01%
₱197,387.00
8.67%
54.67% ₱1,223,524.58
53.72%
₱264,482.08
10.93%
₱244,704.92
10.74%
₱1,057,928.30
43.74%
₱978,819.66
42.98%
Net Income Before Profit Sharing
Less: Profit Sharing
Net Profit closed to capital
₱1,322,410.38
Significant Findings:
1st Quarter:
The most significant driver of the firm’s high net income is the low percentage of the
Cost of goods sold (27.80%) which explains the high percentage of contribution margin
(72.20%). The profit for the 1st quarter amounted to ₱1,223,524.58, which was 53.72%. This
signifies that the firm is able to more than offset its total operating and fixed expenses (38.25%).
2nd Quarter:
The firm’s marketing expenses decreased not just in peso terms, but also as a percentage
of sales. This implies that the money invested in marketing the prior quarter was already
effective in driving sales growth as a start-up business, and thus decreased the marketing budget
for the 2nd quarter as it has already achieved its marketing goals. The profit for the 2nd quarter
amounted to ₱1,322,410.38, which was 54.67%. This signifies that the firm is able to more than
offset its total operating and fixed expenses (37.77%).
Conclusion:
77
The net income has increased by about 0.95% while the rent, utilities and other expenses
have remained more or less constant as a percentage of the sales. The vertical analysis signifies
that 53.72% of company sales in the 1st quarter were generated as net profit whereas 54.67% of
sales were utilized as net profit. More or less, both quarters have the same performance when it
comes to profitability--there was a 0.95% increase due to the holidays, breaks, and events being
held more in the 2nd quarter (December, January, February) like Christmas, Masskara, Semestral
break, and Valentine’s day, giving The Matcha Collective the opportunity to incite more
customers in a heavily crowded mall during the holiday season.
4.11 Financial Ratios12
4.11.1 Liquidity Ratios
Net Working Capital
1st Quarter
2nd Quarter
₱1,225,929.58
₱2,208,235.56
Current Liabilities
₱345,285.40
₱266,744.55
Total
₱880,644.18
₱1,941,491.01
Current Assets
The positive net working capital shown above shows that The Matcha Collective is
capable of funding its operations since the company has still remaining current assets which
amounts to ₱880,644.18 for the first quarter and ₱1,941,491.01 for the second quarter after its
current liabilities are deducted.
Current Ratio
12
Appendix I
78
Current Assets
Current Liabilities
Total
1st Quarter
2nd Quarter
₱1,225,929.58
₱2,208,235.56
₱345,285.40
₱266,744.55
3.55
8.28
In the current ratio, the firm has the ability to cover its short-term liabilities or its dues
within one year as it has 3.55 and 8.28 times more current assets than its current liabilities. To
put into illustration, for every ₱1.00 debt of the business in the first quarter, it still has ₱3.55 to
pay its liabilities for the first quarter and ₱8.28 for the second quarter. This implies that the
business can meet all its current liabilities as a positive amount, especially in the second quarter
as there is a big leap.
The overall results show that the business has the ability to satisfy its short-term
obligations and can easily liquidate or convert its assets to cash. It can still continue its daily
operations provided that it is able to pay its current obligations.
4.11.2 Activity/Asset Utilization Ratios
Asset Turnover
1st Quarter
2nd Quarter
Net Sales
₱2,277,520.00
₱2,418,755.00
Average Total Assets
₱1,171,388.43
₱2,141,744.35
1.94
1.13
Total
The asset turnover discusses how capable The Matcha Collective in utilizing its assets to
generate sales. The data shows in the first quarter that for every ₱1.00 of the company’s assets, it
79
creates ₱1.94 for its sales. Whereas, in the second quarter its assets generated only ₱1.13 sales
which is lower than the first quarter of its operations. The decline could be attributed to the
inefficient use of the company’s assets to generate sales. However, as a start-up business, it
strives to efficiently use its assets in the coming future.
4.11.3 Solvency/Leverage & Debt Service Ratios
Debt-to-Asset Ratio
Total Liabilities
Total Assets
Total
1st Quarter
2nd Quarter
₱345,285.40
₱266,744.55
₱1,424,105.06
₱2,403,492.52
0.24
0.11
The data shows that the firm has a significantly low Debt-to-Asset ratio, which thus
signifies that the firm does not heavily rely on its liabilities or is funded by debts, instead, is
funded by its assets, therefore also implying that the firm’s assets are mostly liquid. The
Debt-to-Asset ratio was higher by 13% due to the investment on loan.
Debt-to-Equity Ratio
Total Liabilities
Shareholder’s Equity
Total
1st Quarter
2nd Quarter
₱345,285.40
₱266,744.55
₱1,078,819.66
₱2,136,747.97
0.32
0.12
The data shows that the firm has a significantly low Debt-to-Equity ratio, which thus
signifies that the firm is far from being risky in terms of financing. In the 1st quarter, the firm
80
used ₱0.32 in debt financing for every ₱1.00 of debt financing. The ratio declined by 20% in the
2nd quarter since it had less debt and thus, used more equity.
Times Interest Earned Ratio
Earnings Before Interest and Tax
Interest Expense
Total
1st Quarter
2nd Quarter
₱1,420,911.58
₱1,516,064.38
₱14,536.00
₱10,803.00
97.75
140.34
The firm showed a significantly high Times Interest Earned ratio as it only has one
interest expense to pay which is from the loan investment, along with its low expense in
comparison to the firm’s EBIT. This signifies that the firm makes enough income to pay for its
interest expense 97.75 times higher that its interest expense for the 1st quarter. The ratio
increased by 42.59 as the firm had higher EBIT and interest expense generally lowers as the time
goes by.
4.11.4 Profitability/Performance Ratios
Gross Profit Margin Ratio
1st Quarter
2nd Quarter
Gross Profit
₱1,644,353.60
₱1,720,419.40
Net Sales
₱2,277,520.00
₱2,418,755.00
0.72
0.71
Total
81
The firm has a considerably high gross profit margin with more than a 0.50 margin in
both quarters, with only a difference of 0.01 lower in the 2nd quarter, which is relatively stable.
This signifies that the firm did well in managing its cost of sales and has more to cover for its
financing, operating, and other costs.
Net Profit Margin/Profit Margin
Net Income
Net Sales
Total
1st Quarter
2nd Quarter
₱978,819.66
₱1,057,928.30
₱2,277,520.00
₱2,418,755.00
0.43
0.44
The net profit margin increased by 1% in the 2nd quarter. The net profit margin also
signifies that almost 50% represent sales — (43% in the 1st quarter and 44% in the 2nd). For
every peso of sales, the firm made 0.43php in the 1st quarter and 0.44php in the 2nd quarter. The
increase in net profit margin indicates that the firm is able to manage its expenses well.
Return on Total Assets
1st Quarter
2nd Quarter
Net Income
₱978,819.66
₱1,057,928.30
Average Total Assets
₱1,171,388.4
₱2,141,744.35
0.84
0.49
Total
The ROA indicates that for every peso of assets the firm invests in, it returns ₱0.84 in net
income during the 1st quarter and ₱0.49 in the 2nd. The ROA declined by 35% in the 2nd quarter,
82
however, it is only coherent to the firm’s less investments in operating equipment in the 2nd
quarter.
Return on Equity
Net Income
Shareholder’s Equity
Total
1st Quarter
2nd Quarter
₱978,819.66
₱1,057,928.30
₱1,078,819.66
₱2,136,747.97
0.91
0.50
The return on equity (ROE) measures the return on the amount of shareholder’s
investment in The Matcha Collective and this is in the perspective of the shareholders. The table
shows that the ROE for the first quarter is 0.91 and 0.50 for the second quarter. This implies that
there is a return of investment of 91% for the first quarter and 50% in the second quarter. For
every ₱1 of total equity. To improve the ROE of the company, it can either increase its profitability by
means of selling more units to the customers or realize more efficiency and productivity, or it can reduce
its equity.
4.11.5 DuPont Analysis Ratio
DuPont Ratio
1st Quarter
2nd Quarter
Profit Margin
1.05
1.07
Total Assets Turnover
0.99
0.58
Equity Multiplier
1.32
1.12
3.36
2.77
Total
83
Equity Multiplier
1st Quarter
2nd Quarter
Total Assets
₱1,424,105.06
₱2,403,492.52
Total Owner’s Equity
₱1,078,819.66
₱2,136,747.97
1.32
1.12
Total
Return on Investment
Net Income
Total Investments
Total
1st Quarter
2nd Quarter
₱978,819.66
₱1,057,928.30
₱1,424,105.06
₱2,403,492.52
₱0.69
₱0.44
Based on the DuPont Analysis Ratio of the company, the profit margin increased by
1.90%, the asset turnover sinked by 41.41%, and the equity multiplier also decreased by 15.15%.
In light of this, we can infer that the decrease in ROE was caused by the decrease in the capital
investments of the company along with the rise in its income.
The firm’s Equity Multiplier ratio is considerably low which signifies that the firm does
not heavily rely on financing from debt and other interest-bearing liabilities. This also denotes
that the firm carries less financial leverage. The ratio was higher during the 1st quarter because
of the initial borrowing of loans to start the business operations. The ratio declined in the 2nd
quarter because there are no additional investments made by the firm and has also paid monthly
payments for the loan, thus reducing its payable.
84
5.0 Recommendations
Contingent to the The Matcha Collective’s horizontal and vertical analyses of the firm’s
figures, which lean towards equity and asset building, however, only limited to cash accounts,
the entrepreneurs can recommend that the firm should invest more in capital investments or on
Property, Plant, and Equipment, specifically, opening a bigger café in a new location that can
enable the business to accommodate more consumers to dine inside, in order to improve
company operations, customer satisfaction, and to be a catalyst for expansion in the future, given
that The Matcha Collective is more than able to finance said investments, with current assets
accounting to 3/4ths of the firm’s total assets. As per the bigger amounts of the cash account in
comparison to the expense and non-current accounts, The Matcha Collective can maximize its
cash in its investments as this can help the company generate more sales. However, this
expansion plan of The Matcha Collective comes along with an additional cost or expenses
particularly in the salaries and wages of the employees. Since the company takes in more
customers, it requires more manpower to serve them. With the increase in the number of
employees by hiring more, the company may also provide training and integrate benchmarks in
the employee selection process in order to ensure quality. The company can also increase the
salary of the current employees as they are paid based on the minimum wage as well as provide
benefits to them, given that they make and produce large quantities of products.
Moreover, The Matcha Collective may also increase its marketing budget as there is only
a small fraction allotted to it. With this, it can attract more customers, as well as create a sense of
loyalty among usual customers visiting the store. In light of this, the company may also add more
inclusive products to offer customers a wide variety of desserts, as well in the beverages, it may
85
also be in different sizes since currently the company only serves the customers with one-size
beverages.
The Corporate Social Responsibility activities of the company are also not yet
implemented but given the figures and the high proportion of current assets, especially cash
accounts it signifies enables the company to conduct the CSR activities. It would be
recommended that the company may start conducting CSR projects as a way of giving back to
the society and being an oriented and responsible part of the community.
86
Appendices
Appendix A ( Assumptions)
● Purchases of raw materials and merchandise are paid 50% on the month of purchase and
the remaining balances are paid in the following month.
● 8% of the gross sales goes to taxes, which are paid by the end of every quarter.
● 20% the net profit goes to the entrepreneurs for profit sharing.
87
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89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
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Appendix S
The Matcha Collective Survey
We're The Matcha Collective — a startup company looking to learn more about how consumers buy
different kinds of drinks. We'd love to hear from you about what you think. This will help us make
improvements to the existing plans and prioritize new features. The survey should only take 5 minutes,
and your responses are completely anonymous.
We're Grade 12 ABM students from Trinity Christian School; this survey is part of our requirement for
our feasibility study class. We really appreciate your time and input!
Name: (optional) _____________________
Age:
___ 0- 12
___ 13 - 18
___ 19 - 24
___ 25 - 34
___ 35 - 44
___ 45 - 54
___ 55- 64
___ 65 and above
Occupation:
___ Student
___ Self-employed
___ Employed
___ Unemployed
Household Monthly Income:
___ Less than P10,999
___ P11,000 to P20,999
___ P21,000 to P30,999
___ P31,000 to P40,999
___ More than P50,000
How interested are you in trying
out a start-up café?
___ Extremely Interested
___ Very Interested
___ Moderately Interested
___ Slightly Interested
___ Not at all Interested
How do you usually discover an
opening
start-up
business?
(Check all that apply)
___
Social
Media
Advertisements
___ Word of Mouth Promotion
___ Direct Mails
___ Print Media
___ Broadcast Advertising
Others:______________
Where do you want a café to be
situated?
___ Malls
___ Commercial Establishments
___ Transit Centers
___ Downtown Areas
Others:______________
Always
Often
Sometimes
Rarely
Never
How often do you go to malls?
How often do you go to a café?
Do you think the location of the café affects
your buying behavior?
124
When buying a drink, do you usually also
order food with your drink?
After finishing your first order, do you usually
plan to order a second batch right after?
Which days are you most likely to visit the café?
___ Weekdays
___ Weekends
___ Both
___ None in particular
How do you prefer to buy/order your drinks and
snacks in a café?
___ In-store
___ Through Online Food Delivery Applications
___ Direct Calls
What are the reasons why you go to cafes? (Check
all that apply)
___ Stress-reliever
___ Refreshment
___ Hang Out
___ Out of Habit
___ To Study
___ For a Business Meeting
Others:______________
What time of the day would you most likely visit a
café?
___ Breakfast
___ Lunch
___ Snack Time
___ Dinner
___ After Dinner
In a café, how do you prefer to consume your How frequent do you order drinks in a week?
meals?
___ More than 4 times
___ Dine-in
___ 4 times
___ Take-out
___ 2 - 3 times
___ At least once
___ Never
Out of these beverages, what do you prefer to In addition to drinks, what food do you prefer to
drink? (Check all that apply)
order? (Check all that apply)
___ Coffee
___ Cookies
___ Superfood Specials
___ Cakes
___ Milk Tea
___ Donuts
___ Matcha Drinks
___ Sandwiches
Others:______________
Others:______________
What is the maximum price that you would be
willing to pay for a 16oz sized all-organic drink
(Matcha, Coffee, Tea, etc.)?
___ Less than ₱100
___ ₱100 - ₱150
___ ₱151 - ₱200
___ More than ₱200
Whom do you most prefer spending your time
having coffee with?
___ Family
___ Friends
___ Special SomeoneSpecial Someone
___ Colleagues
___ Alone
125
Others:______________
How important are the following
features to you when going to
cafes?
1
Not at all
important
2
Slightly
Important
3
Moderately
Important
4
Very
Important
5
Extremely
Important
Quality of Drinks (Taste)
Variety of Drinks
Price
Customer Service
Ambience or Atmosphere of the
Cafe's Interior
Convenient Location
Promotions or Deals
Speed of Service
What are the chances you would choose to try
Matcha and other teas over a regular coffee drink
1
Never
2
Rarely
3
Sometimes
4
Often
5
Always
Matcha/Tea over coffee
Matcha/Tea over other drinks
Rank the following drinks in order of your
preference (4 being the drink you prefer the most)
1
2
3
4
Matcha
Iced (Different kinds of) Tea
Coffee
Smoothie/Frappe
On a scale of 1 to 5, rank the
following features in terms of
importance when it comes to
Matcha and other types of tea
1
Not at All
Important
2
Slightly
Important
3
Moderately
Important
4
Very
Important
5
Extremely
Important
126
Taste
Health Benefits
Look/Presentation
Recommendation
Quality
On a scale of 1 to 5, rank the
following features in terms of
importance when it comes to
coffee
1
Not at All
Important
2
Slightly
Important
3
Moderately
Important
4
Very
Important
5
Extremely
Important
Taste
Health Benefits
Look/Presentation
Recommendation
Quality
Given this menu, choose snacks that you would like to order. (Choose 1 or more)
___ Matcha Latte
___ Dirty Matcha (Matcha & Espresso)
___ Ice Blended Matcha Affogato
___ Matcha Mocha
___ Matcha Strawberry Layered
___ Cold Brew
___ Cappuccino
___ Americano
___ Kori-Kohi
___ Iced Rose Matcha Latte
___ Blue Matcha Latte
___ Mango Dragon Fruit Tea w/ Green Bean Coffee
___ Lavender Lemonade
___ Iced Golden Turmeric Latte
___ Sticky Matcha Pull-apart Loaf
___ Matcha Moist Cake with White Chocolate
___ Matcha Dream Cake
___ Matcha Yema Cake
___ Red Bean Matcha Mochi
___ Strawberry Matcha Mochi
___ Chocolate Mochi
___ Taro Mochi
___ Original Matcha Mochi
___ Almond Matcha Cookie
___ White Chocolate Chips Matcha Cookie
___ Chocolate Chunks Matcha Cookie
___ Strawberry Matcha Sugar Cookie
Thank you for your interest in participating in this survey!
127
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