“SILING PANIGANG PRODUCTION ENTERPRISE”
Business Plan
Presented to the Faculty of the
MINDORO STATE COLLEGE OF AGRICULTURE AND TECHNOLOGY
Main Campus
Alcate, Victoria, Oriental Mindoro
In Partial Fulfillment
of the Requirement for the Degree
BACHELOR OF SCIENCE IN ENTREPRENUERSHIP
Major in Farm Business
by
HERATO, KARRY AN
BARABICHO, JOANNA
TAGLE, CHRISTINE
TIBIO, KENNETH
February 2018
Chapter I
INTRODUCTION
Nature and Background of the Study
Chili pepper (Capsicumannum) belongs to Solonaceae or
nightshade family and are both used as vegetable and as
spice. It is the most cultivated vegetable/spice in the
Philippines
and
ispopularly
known
as
silinghaba
or
silingpanigang(Garde, 2016).
Based on
crops
Philippine Authority Statistics (2017) the
subsector
recorded
a
2.66
percent
increase
in
production in the fourth quarter of 2017. It contributed
51.20
percent
production
declined
peanut,
the
increased
by
production
to
5.73
of
total
by
4.37
percent.
coconut,
cassava,
sweet
subsector’s gross
agricultural
percent
Increments
sugarcane,
potato,
earnings
output.
Palay
while
that
of
com
were
noted
in
the
banana,
eggplant
and
pineapple,
rubber.
The
amounted to PhP289.3 billion.
This was 7.05 percent higher compared to last year’s level.
For the whole year of 2017, the crop subsector recorded a
6.69 percent growth in production.
The
varieties
producer
(East-West
of
named
chili
their
Seed
Co.)
latest
of
(light
different
green)
as
Diango Dos F1. They call it “finger pepper.” They see lots
of them in the market nowadays. Farmers would often ask how
to grow them profitably with less cost. Planting of finger
peppers usually fall on the months of May to July, and
September
to
December.
It
says
that
the
technique
to
increase profit is to plant during off-season, but there
are
risks
like
typhoon
and
heavy
rains.
The
technology
recommended by the seed company is of course conventional,
wherein the basal fertilizer is not just organic fertilizer
but
commercial
fertilizer
as
well.
Land
preparation
includes bedding after thorough plowing, and mulching with
plastic mulch after putting the basal fertilizers. For the
seeds, they need 200 grams per hectare, which they must sow
first in seedling trays. The ones that look like egg trays.
Sow one seed per cell in the seedling tray. Seedlings must
be
ready
for
transplanting
three
to
four
weeks
after
sowing. Normally, it must have four to five true leaves by
then. Transplanting must be done late in the afternoon.
(Sun Star,2016).
It’s
mentioned
above
that
planting
finger
peppers
usually fall on the months of May to July, and September to
December. It says that the technique to increase profit of
to
plant
during
off
–season,
but
there
are
risks
like
typhoon and heavy rains. Planting of SilingPanigang are at
high risk during those months because of excessive rain
here in Mindoro State College of Agriculture and Technology
Alcate, Victoria, Oreintal Mindoro which is unfavorably to
the crops. There is a good market with this kind of crops,
with the proper accordance of management and recommended
technology.
The
study
marketability
determines
of
the
the
product
as
profitability
small
scale
and
business.
Moreover, this will provide various information’s for those
who are interested to this kind of business.
Statement of the Problem
This study determined the operational performance of
the production of SilingPanigang in Mindoro State College
of
Agriculture
and
Technology
(MinSCAT)
Main
Campus,
Alcate, Victoria, Oriental Mindoro.
Specifically,
it
sought
answers
to
the
following
questions:
1. What is the management operational performance in
terms of:
1.1. Planning
1.2. Organizing
1.3. Directing
1.4. Controlling?
2. What is the production operational performance in
terms of:
2.1. Quality
2.2. Quantity?
3. What is the marketing operational performance in
terms of:
3.1. Sales
3.2. Customer Satisfaction
3.3. Marketing Strategy?
4. What is the financial operational performance in
terms of:
4.1. Return on Investment (ROI)
4.2. Cash Payback Period?
Significance of the Study
This
study
presents
the
benefactors
of
Django
F1
SilingPanigang production and its relative importance.
Farmer / Entrepreneur
The results and information in this special project
report will be helpful to farmer and entrepreneur venturing
in crop production as it could provide them the necessary
technical
know-how
in
strategies and marketing.
siling
production
management,
Student
The information presented in this special report will
help
the
student
taking
crop
or
business
related
discipline/courses to have knowledge in the field of Django
F1
SilingPanigang
familiar
production.
in
the
business
particularly
for
crop
This
potential
production.
will
of
make
students
siling
panigang,
might
encourage
Thus,
them when graduated to venture siling panigang production.
Future Researcher
The result of the study will serve as a reference and
basis for the future researchers and may encourage them to
search further for efficient strategies in production and
marketing of Django F1.
College
This special project report will serve as reference
for
the
college
and
for
the
use
of
students
and
instructors.
Scope and Limitation of the Study
This study focused on determining the viability of
producing
siling
paningang
in
MinSCAT
in
terms
of
production, marketing management, and financial operational
performance.
entrepreneurs
It
in
determines
the
effectiveness
of
marketing
the
product,
way
the
the
of
promoting
the
product
and
its
overall
appeal
to
the
customers were considered.
This study was conducted at Mindoro State College of
Agriculture and Technology Main Campus, Alcate, Victoria,
Oriental Mindoro from June to October.
Definition of Terms
To facilitate and ensure comprehension, the following
terms that will be used in this study
are conceptually
defined:
Sow- to plant seed in an area of ground
Transplant- to remove from the ground or from a pot and
move it to another place
Plowing- to dig into or break up (dirt, soil, land, et c.)
with a plow
Harrow- to cultivate with the a harrow
Wilt- a disorder (as a fungus disease) of plants marked by
loss of turgidity in soft tissues with subsequent drooping
and often shriveling—called also wilt disease.
Nursery- an area where plants are grown for transplanting.
Seedbed- an area prepared for planting seeds
Controlling-is
one
of
the
managerial
functions
like planning, organizing, staffing anddirecting.
It
is an important function because it helps to check the
errors
and
deviation
to
from
take
the
corrective
standards
are
action
minimized
so
and
that
stated
goals of the organization are achieved in a desired
manner (VinodLetley, 2017).
Customer Satisfaction--when customers are pleased with the
goods or services they have bought, you can refer to
customer satisfaction (Cobuild, 2017).
Marketing strategies- must be combined elements of study of
the
demographic
markets,
competitors,
pricing,
promotion, distribution and sales support. The goal is
to
offer
a
revolutionary
product
that
will
offer
people a new experience (Hunt, 2017).
Directing- is a complex function that includes all those
activities
which
are
designed
to
encourage
subordinates to work effectively and efficiently in
both the short and long-run (Koontz &O’Donnel,2012).
Organizing is the process of identifying and grouping the
work
to
be
responsibility
performed,
and
defining
authority
and
and
delegating
establishing
relationships for the purpose of enabling people to
work
most
effectively
objectives (Allen, 2015).
together
in
accomplishing
The
payback
period
is
the
length
of
time
required
to
recover the cost of an investment. The payback period
of
a
given
investment
or
project
is
an
important
determinant of whether to undertake the position or
project, as longer payback periods are typically not
desirable
for
investment
positions(Investopedia,
2017).
Planning is usually interpreted as a process to develop a
strategy
to
achieve
desired
objectives
to
solve
problems, and to facilitate action (Mitchell, 2002).
The proponents made a good business strategy that will
help them to accomplish the goals.
Qualityis sometimes defined as meeting the requirements of
the customer (Rouse, 2006).
Quantity – refers to the volume of product produce in every
production (Klein, 2008).
Return of Investment a performance measure used to evaluate
the
efficiency
of
an
investment
or
to
compare
efficiency of a number of different investments. It
measures
the
amount
of
return
on
an
investment
relative to the investments cost (Investopedia, 2017).
Chapter II
REVIEW OF RELATED LITERATURE
Brief History of SilingPanigang
Silingmahaba is usually a bright green but gets redder
with age.
Despite its name, it grows to be only about a
finger long although it is longer than the other commonly
found hot chili pepper in the Philippines, silinglabuyo.
Likely
a
cultivar
of Capsicum
annuumlongum, silingmahaba packs about the same heat as a
jalapeño.
Capsicum annuum L. is a domesticated species of the
plant genus Capsicum in the family Solanaceaewith numerous
varieties. The plant is native to the southern part of
North America and the northern part of South America. This
plant
has
been
civilization,
known
and
times.
The
common
names
used
species
since
in
human
Capsicum
including
the
beginning
diet
since
annuumL.has
chilli
pepper,
of
human
prehistoric
more
than
paprika
200
(sweet
varieties), bell pepper, cayenne, jalapeño, chiltepin, and
Christmas pepper. The varieties and cultivars of Capsicum
annuumare classified on the basis of their fruit shapes,
such
as
annuumvar.
Capsicum
annuumvar.
glabriusculum,
grossun,Capsicumannuumvar.
Capsicum
accuminatum,
and
Capsicumannuum var. longum.This last aforementioned variety
is what this study is concerned with. Capsicum annuum var.
longumhas the common names of long pepper or Spanish pepper
in English, silinghaba or siling-sigang in Filipino (the
Philippine national language).The fruit of Capsicum annuum
var.
longumis
greenish-yellow
or
red,
oblong
lanceolate
narrowing to a tapering tip, up to 6 cm long and 1.5 cm
across.
Meanwhile
Philippine chilies, like all chilies, are
believed to have originated in the Americas—some sources
saying around Mexico, others in Peru—and were spread around
the world by European traders, primarily the Spanish and
Portuguese (PhilFoodie 2011).
Health Benefits of Sili
The
other
uses
of
pepper
besides
being
spicy
ingredient include antioxidant, detoxidant, and antibiotic.
This is the reason why they don’t give antibiotic to their
chicken when they have symptom of colds or other bacterial
disease. Give them the native pepper as antidote. It can
also lessen the possibility of heart attack, lung disease,
and cancer. It is excellent source of Vitamin A,B,C and E
with
minerals
Potassium,
like
Niacin,
Molybdenum,
Pyridoxin
Manganese,
(vitamin
B6),
Folate,
Thiamine
(Vitamin B1), and has no cholesterol. Chilli contains seven
times
more
Vitamin
C
than
orange
(Garde,
2016).
Planning
Planningis deciding in advance what to do, how to do
it,
when
to
anticipating
future
do
the
course
it
and
future
of
who
and
action.
to
do
it.
consciously.
According
to
It
involves
Choosing
Hainmann
the
(2015)
planning is the function that determines in advance should
be
done.Furthermore,Conyers
and
Hills
(1986),
planning
refers to a continuous process which involves decisions or
choices about alternative ways of using available resources
with
the
aim
of
achieving
particular
goal.Likewise,
Goetz(2015), added that planning is fundamentally choosing
and a planning problem arises when an alternative course of
action is discovered.
Organizing
Organizingin
arrangement
According
to
of
a
general
activities,
Theo
Haimann
sense
organizing
organizing
means
follows
is
the
systematic
planning.
process
of
defining and grouping the activities of the entire process
and
establishing
the
authority
and
relationship
among
them.Furthermore, according to Stoner, Freeman and Gilbert,
organizing is the process of arranging and allocating work,
authority,
and
resources
among
organizations
members
so
that they can achieve organizational goal.
Directing
Directingis said to be a process in which the managers
instruct, guide and overseen the performance of the workers
to achieve predetermined goals. Directing is said to be the
heart of management process.
and
Warren
(2016),
Likewise, according to Newman
directing
consists
of
process
or
technique by which instruction can be issued and operations
can
be
carried
out
as
originally
planned.
Therefore,
directing is the function of guiding, inspiring, overseeing
and
instructing
people
towards
accomplishment
of
organizational goals.
Controlling
Controlling
is
an
important
function
of
management
which all the managers are required to perform. In order to
contribute
objectives,
towards
a
achievement
manager
is
required
of
to
organizational
exercise
effective
control over the activities of the subordinates.According
to
Terry,
accomplish,
controlling
that
is
is
determining
evaluating
the
what
is
performance
being
and,
if
necessary, applying corrected measured so that performance
takes
place
according
to
plans.
Moreover,
Brech
(2017),
defined
controlling
is
checking
of
performance
against
predetermined standards contained in the plans with a view
to ensuring adequate progress and satisfactory performance.
Quality
Quality according to the late American Management guru
Peter Drucker said that quality in product or service is
not what the supplier puts in. It is what the customer gets
out
and
is
willing
to
pay
for.Likewise,
Bussels
(2012)
stated that quality is fulfilling the customer’s purpose in
a way that matters to them. Without that purpose having
been artificially created through an elaborate marketing
campaign by delivering a product and or service that is
worthy of human beings.
Additionally Reuben (2012)
means
building,
service,
process,
pointed out that quality
servicing,
offering
or
ethically
product
and
with
producing
the
a
highest
possible standards inherently involved. Quality means being
able to look at yourself in the mirror with satisfaction
and pride knowing that your stamp is symbolically there for
everyone to see that you have done your very best because
that is who you are as individual, as a project team in an
organization.
Quantity
Quantityaccording to J. McHugh (2008) cited production
as the creation of goods and services using factors of
production;
land,
labor,
capital,
entrepreneurship
and
knowledge.Likewise, Klein (2008), cited that the quantity
is the volume of product produced in every production.
Sales
Salesaccording to Kotler (2015) sales as the process
of persuading customer to purchase the companys product or
service.Likewise,
Longneckret.
al.,
(2006)
formally
defined, a sales forecast estimate how much of a product or
service can be sold within a given market in a defined time
period.
Because
sales
revolve
around
a
specific
target
market, the market should be defined as possible.
Customer Satisfaction
Customer
(2003),
satisfactionfirstly,
satisfaction
can
mean
as
stated
basically
by
Cochan
anything
that
relates to the purchase of the organization. This may be
due
to
factors
responsiveness,
such
as
price,
reliability,
execution
time,
benets.Likewise,
comfort,
Vavra(2002)
points out that customer satisfaction may be of a product,
decision, process delivery terms, the use of experience a
store or a company, organization prior to the purchase of
available expertise.
Furhermore as Hill et al (2007) cited in their book
that the best denetion was told by Kotler that if the
service meets the expectation of customer is satisfied and,
if
exceeding
the
expectation
of
customer
remain
highly
satised; well.
Marketing
Kotler and Armstrong (2010), stated that marketing is
the
social
organizations
process
by
obtain
what
which
they
the
need
individuals
and
want
and
through
creating and exchanging value with others.Additionaly, AMA
(2012),
defines
institutions,
that
and
marketing
process
for
is
the
activity,
creating,
set
of
communicating,
delivering, and exchanging offerings that have value for
customers, clients, partners and society at large.Likewise,
CIM (2012), stressed out that marketing is the management
process
for
identifying,
anticipating
and
satisfying
customer requirements profitably.
Marketing Strategy
Aaker
(2013),
cited
that
marketing
strategy
is
a
process that can allow an organization to concentrate its
resources on the optimal opportunities with the goals of
increasing sales and achieving a sustainable competitive
advantage.Likewise,
strategy
consist
externally
Bradley
of
focused
an
set
(2012)
defined
internationally
of
choices
marketing
integrated
about
but
organization
addresses its customers in the context of a competitive
environment.
Additionally,
Baker
(2008),
cited
the
strategic
marketing plan is a model of a units position in its market
relative to competitors and contains a definition of market
needs,
the
objective
to
be
achieve,
the
strategies
to
achieve the objectives and resources required to obtain the
desired result.
Return on Investment
According
to
Factiva
(2010),
Return
on
Investment
(ROI) within the context of marketing, practitioners might
calculate Return on Investment (ROI) by simply comparing
revenue
gains
against
marketing
dollars
spent.Likewise,
according to Cradduck (2017), it is through a good Return
of Investment (ROI) that proponents claimed they have been
successful.
This
allowed
the
proponents
to
determine
whether advertising or marketing campaigns are booming. The
whole idea behind this is to get the higher return than
what you have invested, if a person does not employ an ROI
tracking system; chances are that they might not get the
profit.
Payback Period
Gutt (2017), defined Payback Period (PP) refers to the
period of time required to recoup the funds expended in an
investment, or to reach break-even point. (PP) is usually
expressed in years.Furthermore, Knight (2009) stated that
the
shorter
the
payback
period,
the
better.
And
it
“obviously has to be shorter than the life of the project —
otherwise there’s no reason to make the investment.” If
there’s a long payback period, you’re probably not looking
at a worthwhile investment.
Relevance of the Study
The related literature and studies presented in this
chapter
provide
additional
information
which
helped
the
proponents to clarify and discuss some relevant bits of
information needed to conduct this study.
Chapter III
MATERIALS AND METHODS
Materials
The following materials or inputs were used in the
conduct of the study:
1. Seeds
2. 2000 pcs of plastic cups
3. Organic Fertilizer
4. 1 sack of chicken manure with the combination of vermi
cast and rice hull.
5. Commercial Fertilizer
a. 20 kilos of Calcium Nitrate
b. 50 kilos of 14-14-14
c. 1 galloon of power grow
6. Insecticides
a. 1 galoon of Coside
b. 1 galoon of fungisci
7. Tools and Equipment for Production
a. 100 meters of pbc hose
b. 4 pairs of hand spade (cultivator)
c. 1 unit of sprayer
d. 4 unit of harvesting pale
e. 1 unit of weighing scale
8. Personal Protective Equipment
a. 4 pairs of boots
b. 4 unit of straw hat
9. Other Supplies and materials
a. 2 rolled bag of plastic bundle (packaging)
b. Record notebook, pen/pencil
c. Straw (panali)
d. Coconut frondes
e. 20x20 plastic
f. 7 pcs of sack
g. Bamboo
Methods
Land Preparation
The
proponents
hired
a
tractor
and
a
Carrabao
for
harrowing, plowing and bed making the soil.
Preparation of Nursery
The nursery for the plants of SilingPanigang was made
of indigenous materials such as bamboo used as post,coconut
frondesfor roofing with plastic so that the seedlings may
not
directly
penetrated
with
sunlight
and
may
not
destructed by heavy rains. Plastic straw was used in tying
and used as a divider of plastic cups. Empty sacks was used
as a cover after the sowing of seeds in plastic cups to
avoid
eaten
by
the
animals
until
they
sprouted.
The
seedlings were transplanted 30 days after sowing.
Purchase of Materials
The
proponents
procure
some
of
their
materials
in
Roxas, Oriental Mindoro, such as the seeds, plastic cups.
Tools
such
as
hand
shovel,
knapsack
sprayer
and
other
supplies procure in Pinamalayan, Oriental Mindoro. While
the
fertilizers
and
pesticides
procure
in
Victoria,
Oriental Mindoro.
Transplanting
A month after nurturing the seedlings in the nursery,
it
is
prepared
for
transplanting.
Transplanting
process
start with digging a hole where the plants be putted, with
a proper technology as illustrated in a Business Plan. They
performed transplanting early in the morning.
Fertilizer Application
Synthetic
requirement
fertilizer
needed
by
helps
the
to
improve
crops.
Calcium
the
nutrient
nitrate
was
applied two weeks after transplanting. It helps the plants
to
grow
Complete
faster.
A
week
(14-14-14)
was
after
applying
applied.
calcium
Spraying
of
nitrate,
power
grow
after harvesting helps the crops to produce more flower and
to coppiced which produce more fruits that leads for more
harvest.
Pesticide Application
Bacteria wilt infestation was the most factors to be
considered
in
cropping.
IF
the
crops
was
infested
with
bacteria wilt, it will be a caused of crops dying. The
farmer’s
used
coscide
and
fungiscide
to
eliminate
the
bacteria wilt.
Weeding Management
Weeds are unwanted plants that invade the crops and
where the competition in nutrients between plants and weeds
takes placed.
Removing weeds are necessary for easy grow
of the crops and for the convenience of the farmer in every
harvesting time. There are two ways to eliminate the weeds,
through manual pulling or through spraying weedicide.
The
farmers or the entrepreneur’s chose to hire a 5 weedier
every other month to remove the weeds.
Harvesting and Marketing
45 days after transplanting, the crops started to bare
fruits and it was matured after a week. The entrepreneur’s
first harvested was 10 kilos and when the weeks passed by
from 10 kilos it become 50 kilos a week. The harvested
fruits were delivered in Alcate, to Mrs. Marit. The first
harvest price was 80 pesos per kilo and goes up to 80 pesos
per kilo.
Chapter IV
RESULTS AND DISCUSSION
In
this
chapter,
the
aspects
of
operational
performance of silingpanigangproduction were presented. In
addition,
the
enterprise
undertaken
on
the
marketing,
production, management and financial operation management
was also presented and discussed based on actual results.
1. Marketing Operational Performance
1.1 Sales
Sales are the sum of money received or accounted by
the
business
services
to
entity
from
customers.
an
High
exchange
sales
of
products
determine
the
or
good
performance of a business whilea low sale indicates either
low customer patronage or low production.
Siling Panigang Django F1 Sales
Series1
11060
5040
3710
August
September
October
Figure 1. Monthly Sales of SilingPanigang (varDjango F1)
The result shows that the incurred total sales of Php
11,060.00 during the month of September were higher than
the total sales obtained during the months of August and
October
with
Php
3,710.00
and
Php
5,040.00
(Figure
1),
respectively. Results can be attributed to the fact that
silingpanigang which is considered as high value crop is
indeed
highly
vulnerable
to
different
factors
in
crop
production enterprise like fluctuating prices, season of
production, demand and supply, as well as the preferences
of the consuming public.
In addition, differences in the incurred monthly sales
can be associated to the number of kilogram produced and
the
corresponding
price
(i.e.
either
peak
season
and/or
lean season) per month. Based on the actual farm production
and management, silingpaniganghave very seasonal value in
the
market.
Results
Septemberwhich
is
revealed
considered
that
duringthe
the
peak
month
of
of
production
happened to have favorable sales due to high demand even
with fair price. Moreover, opposite marketing scenario was
observed during the month of August and October – though
silingpanigang have higher market value but due to lower
production the overall monthly sales was reduced.
1.2 Customer Satisfaction
Customer satisfaction implies the degree of benefit
the products or services occurred to the customers after
use
or
consumption
(Cobuild,
2017).Thus,
customer
satisfaction is a good indicator of longer and profitable
stream of purchases of the customers.
Based
on
the
actual
marketing,
the
buyers
and/or
consumers were satisfied to the quality (i.e. color and
general
appearance)
of
price.
Theseresults
the
were
product
based
based
on
on
their
the
paid
first-hand
information due informal conversation with the buyers (i.e.
during selling) that was done to facilitate and extract
information
about
what
the
buyers/consumers
preferences.
This
method
was
in
findings
reported
by
McDaniel
congruence
(2012)
that
product
with
the
customer
satisfaction can be identified by conducting a first-hand
survey (i.e. either formal and/or informal survey with or
without structured survey questionnaire) to determine and
meet the consumer’s product needs and preferences.
1.3 Marketing Strategy
Hartly (2007) mentioned that marketing strategy is an
approach
taken
to
promote
and
sell
silingpanigangin
the
marketplace using different schemes (i.e. direct selling,
word-of-mouth,
buyers
and
social
consumers
media,
to
and
the
accept
the
like)
to
product
encourage
and
thus
improved sales, not just based on volume and price but also
through producer-consumer trust.
Through personal and direct selling as well as social
media, consumers of the silingpanigang were obtained from
individual buyers (per kilogram basis) to bulk buyers (per
sack basis). In addition, because of the price fluctuation
and season vulnerability of silingpanigang, price was in
accordance
which
to
helps
transactions.
the
the
existing
proponents
market
for
price
easier
of
the
product
product
marketing
2. Production Operational Performance
2.1 Quantity
The quantity refers to the number of products produced
during the entire operation. A total of 283 kilograms were
harvested within 5months production period out of the 3000
planted silingpanigangand was presented in Figure 2.
Siling Panigang
3500
3000
Axis Title
2500
2000
1500
1000
500
0
Number of Plants
Total Harvested (kilo)
3000
283
Siling Panigang
Figure 2.Total production of siling panigang during 5
months production period
2.2 Quality
The quality refers to the totality of features and
characteristics of a product that obtain its ability to
satisfy
the
stated
public
(Griffin,
and
2008).
implied
needs
Initially,
of
the
based
consuming
on
actual
operation (i.e. production to marketing), products was sold
to individual buyers (per kilogram basis) but due to the
high demand and seasonality of silingpanigang, the produced
products was then purchase by bulk buyers (per sack basis)
that makes the marketing aspect to become less laborious.
In
addition,
quality
of
the
silingpanigang
in
terms
of
shelf-life and general appearance was conserved due to the
proper
implementation
of
various
technologies
during
harvesting and post-harvest handlingthat in the long-run
avoid product contamination and preserves the freshness of
the product.
3. Management Operational Performance
3.1 Planning
Planning
is
a
primary
function
of
the
management
wherein future activities and outcome were anticipated in
accordance
to
2015).
addition,
In
the
objectives
it
(Mitchell,
serves
as
2002;
framework
Assar’s,
for
which
implementation must be conforms.
Before the implementation of silingpanigangproduction
enterprise,
into
various
aspects
consideration
from
of
the
the
operation
organization
were
of
taken
personnel,
acquisition of planting materials, tools and equipments,
and
other
production,
supplies
crop
needed
management
for
the
land
practices
preparation,
(i.e.
weeding,
cultivating, harvesting, post-harvest handling, etc.) and
marketing of products. In addition, planning for various
marketing strategies (words-of-mouth, direct and personal
selling, social media) were also implemented to improved
sales and profit.
3.2 Organizing
Organizing
within
the
refers
to
organizational
the
process
structure
of
will
deciding
perform
who
what
tasks, where decisions will be made, who reports to whom
and
how
different
parts
of
organization
will
coordinate
their activities to pursue a common goal(Barnard, 2017).
Before the implementation of silingpanigang production
enterprise, an organizational structure consisting of the
manager
define
and
and
different
specified
sub-ordinates
job
andmembers
description,
having
authority
and
responsibilities was done to ensure an organize flow of
command and communication. In addition, member(s) regularly
coordinates to the manager for the development and remedy
to a certain problems (if any) in specified tasksgiven and
provides suggestions in which decisions were derived.
3.3 Directing
Leading and/or directing is a process of motivating,
influencing
and
directing
others
in
the
organization
to
work productively in pursuit of organization goals (Chand,
2017).
Based on the actual operation, the assigned manager
(i.e.
based
on
responsibility
different
to
crop
harvesting,
organizational
arrange
and
management
post-harvest
structure)
prepare
practices
handling)
the
has
the
schedule
(i.e.
during
for
weeding,
the
entire
operation period(production to marketing). These activities
were done to ensure that the sub-ordinates and/or member(s)
are functional and efficient. In addition, instructions and
reminders
during
the
actual
operation
of
the
business
enterprise were given.
3.4 Controlling
Controlling
against
goals,
is
a
process
intervening
of
monitoring
when
goals
are
performance
not
met
and
taking corrective actions (Brech, 2009).
Due to careful planning and organizing prior to the
actual operation, controlling help the organization (i.e.
manager
labor
to
members)
allowance
efficiency
of
and
to
minimized
production
production.
All
production
costs)
and
expensesand
cost
(i.e.
monitor
the
sales
were
recorded
accordingly
to
oversee
the
productivity
of
the
operation with a given period of time.
4. Financial Operational Performance
4.1 Production Cost
A total of Php20, 000.00 as initial capital investment
was prepared for the silingpanigang production enterprise.
On
the
other
hand,
during
the
actual
operation,
an
additional cost of Php 268.00 was added due to unexpected
increase
in
the
freight
cost
(Table
1).
In
addition,
monthly production cost from June to October was recorded
with Php 6,467.00, Php 3,224.00, Php 4,619.00, Php 1,679.00
and Php 4,279.00, respectively.
Table 1. Total Production Cost in the production of 3000
seedlings SilingPanigang
ITEMS
TOTAL COST
Seedlings Purchased
2,750.00
Fertilizers
3,841.00
Materials
4,637.00
Freight Cost
440.00
Labor Allowance
8,600.00
Total Production Cost
20,268.00
4.2 Net Income
The total net income determines the profitability of
the business project. In computing the total net income,
the formula shown below was used.
Total
Sales
=
total
kilogram
harvested
x
price/kilogram
= 283 x 70 = Php 20,160.00
Net Income = Total Sales – Total Expenses
= Php 19,810– Php20,268.00
=
(Php 458.00)
Results revealed a NET LOSS of Php 458.00 that can be
attributed
unexpected
to
the
fluctuating
increase
in
the
price
freight
(60-80/kilogram),
cost
(Table
1),
and
climatic factors that lessens the crop yield.
4.3 Payback Period
Payback
period
capital
the
period
is
business
would
investmentor
investment
would
investment
(Blain,
used
the
return
to
take
determine
to
measure
or
2007).The
the
compute the payback period (PP).
Payback period = Total Investment
X 7 days
Total Net Income
= Php 20,268.00X 7 days
(Php 458.00)
recover
of
how
break-even
formula
the
below
length
the
of
initial
quickly
an
point
in
the
was
used
to
= 10months
Based
on
the
computed
investment
or
break-even
payback
point
period
could
be
(PP),
initial
recovered
with
continuous production of silingpanigangwithin 4months and
3days.However, PP could be shorten in case of favorable
climatic and environmental condition, higher production and
coupled with higher price per kilogram.
4.4 Return on Investment
Return on investment (ROI) is a measure of managerial
effectiveness and efficiently and was computed as the ratio
of total net income to the total expenditures and serves as
tool to demonstrate the percentage recovery of the capital
investment.
ROI =
Net Income
Total Expenses
x 100
= Php458.00 x 100
Php20,268.00
= -2.25 %
Computed
ROI
for
5
months
silingpanigangproduction
have negative value which is associated with the negative
value of net income of (Php 458.00) and can be due to
shorter production period (5 months) that is not enough to
recover
the
investment
and
gained
profit
since
computed
payback period is within 10 months. Hence, this negative
value could be converted to positive if the operation can
be lengthened.
Chapter V
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
Prior to the actual operation, different significant
activities
like
controlling
were
planning,
organizing,
implemented.
In
directing
addition,
and
management
operational performance and different marketing strategies
was also determined.
Django F1silingpanigangproduction enterprise produced
quality silingpanigang products and caters both individual
buyers (per kilogram basis)withinMinSCATpremises and bulk
buyers
(per
sack
basis)
that
was
engaged
in
vegetable
enterprise.
Based
on
marketing),
the
actual
operation
silingpanigangproduction
(i.e.
production
enterprise
to
have
potential market. However, due to several risk factors that
is
vital
in
crop
production
and
management
and
is
uncontrollable such as climatic condition and fluctuating
price, negativeincome and profit margin was obtained. On
the other hand, positive income and profit margin could be
attained within longer period of production since computed
payback period is 10 months.
Conclusions
Based from the results of the study, the following
conclusions are drawn.
1. The
silingpanigang
potential
market
performance
in
production
based
terms
on
of
enterprise
marketing
quality
has
operational
and
customers’
satisfaction.
2. Proper
planning,
organizing,
directing
and
controlling would result to a better performance of
the operation.
3. Based on the actual operation and computed payback
period, 5 months production of silingpanigang is not
enough to obtained positive net income and return on
investment.
Recommendation
Based on the study conducted the proponents recommend
the following:
1. The
soil,
topographic
and
climatic
condition
of
Mindoro State College of Agriculture and Technology
must be studied for appropriate business proposal.
2. Based on the actual operation (i.e. production to
marketing),
silingpanigangproduction
enterprise
could be productive and profitable if the production
period is longer.
PARTICULARS
First Month
Second Month
Third Month
August
September
October
Sales:
Siling
Panigang
Net Sales:
Cost of Goods Sold:
Seedlings
Expenses
Seedling
plastic cups
Freight cost
Operating Expenses:
Fertilizer
Pesticide
Materials
Expenses
Labor Allowance
Total operating
expenses
Net Income
Beginning Retained
Earnings
Ending Retained
Earnings
3710
3710
11060
5040
576
280
80
80
1678
595
4031
486.5
297.5
15
486.5
297.5
15
4400
800
3400
14310
-10600
1679
9381
4279
761
0
-10600
-1219
-10600
-1219
-458
2750
Appendix 1
Siling PanigangIncome Statement
For the month of August to October 2017
Particular
August
September
October
-
-10,600.00
-1,219.00
11,060.00
11,060.00
5,040.00
5,040.00
1,678.00
595.00
280
4400
4607
486.50
297.50
80
800
15
486.50
297.50
80
3400
15
14310
1,679.00
4,279.00
14,310.00
1,679.00
4,279.00
Additional Beginning Balance
0.00
Closing Balance
-10,600.00
Appendix II
-10,600.00
-1,219.00
-1,219.00
-458.00
Opening Balance
Cash Inflows
Total Sales
Total Inflows
3,710.00
3,710.00
Cash Outflows
SEEDLINGS
FERTILIZER
PESTICIDE
Freight cost
Labor Allowance Expense
MATERIALS
Expense
Total Outflows
2750
Statement of Cash Flow
Appendix 1II
Balanced Sheet
Accounts
August
September
October
Assets
Cash
Total Assets
3,710.00 11,060.00
5,040.00
3,710.00 11,060.00
5,040.00
Liability, Equity and retained
earnigs
Liability, Equity and retained
earnigs
Total Equity, Liquidity and Retained
Earnings
14,310
1679
4279
-10,600
9381
761
3,710
11060
5040
Appendix IV
Table 1. Sales performance
Siling Panigang
Product
Siling Panigang
August
September October
3710
11060
Appendix V
Table II
5040
Total
Sales
19810
Production Operational Performance
Of Siling Panigang
Product
Siling Panigang
August
September
53
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October
72
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