ATENEO DE DAVAO UNIVERSITY SENIOR HIGH SCHOOL E. JACINTO ST., DAVAO CITY In Partial Fulfillment of ENTREPRENEURSHIP AMORE “Once given, forever beholden.” Submitted to: Sir Khien Jason Bautista Submitted by: Aclaracion, Franz Q. Basquez, Henrico Paolo L. Bation, Erika Dominique E. Cabig, Axel Angelo D. Falgui, Aleisha Lyn T. Faller, Amiel Ed Angelo A. Frigillana, Sarah Jayne C. Juezan, Franz Stephen Janlee A. Macalos, Mariane Coleen So, Marvin Carstairs M. XII – St. Del Castillo September 28, 2018 I.INTRODUCTION A. Name and Address of the Business or Company Amore offers its customers a wide range of fresh aromatic flower bouquets and gift arrangements at reasonable price points. Our online shop can be visited in Facebook and Instagram via Amore. With utmost consideration for the busy and fast-paced lifestyles of our valued customers, we offer deliveries and pick-ups in different locations for their convenience. As said the shops tagline “Once given, forever beholden”, A more aims to celebrate love through simple joys. The online flower shop targets students, couples, regular employees, or even just a happily single individual who wants to show some love to an important person in his or her life. B. Name and Address of the Entrepreneurs Franz Aclaracion Door 2, Valdevieso Apartment, Rosal Street, Flores Village, Bangkal, Davao City Henrico Basquez Block 4, Lot 5, Blueberry Street, Ciudad de Esperanza, Buhangin, Davao City Erika Dominique Bation 18, Oriole Street, Phase 2, Saint Michael Village, Ma-a, Davao City Axel Angelo Cabig Block 1, Lot 1, Huiso Compound, Los Amigos, Tugbok District, Davao City Aleisha Lyn Falgui Door 33, Lee Apartments, Dabalus Street, Davao City Amiel Faller Block 1, Lot 4, Garden Villas, Elenita Heights, Catalunan Grande, Davao City Sarah Jayne Frigillana Block 44, Lot 19, Phase 3, Ciudad de Esperanza, Cabantian, Davao City Franz Stephen Juezan Block 7, Lot 4, Kamagong Road, Molave Street. Awhag Subdivision, Bacaca, Davao City Coleen Macalos Bock 14, Lot 1, Corner Bluebell Cattleya Street. Bloomfields Marvin Carstairs So SKC Building, Rosemary Street., Agdao, Davao City Mr. Marvin Carstairs So is the sole proprietor and owner of Amore. He graduated with a BS Accountancy in De La Salle University. He aims to provide quality service for his customers with his educational background and work experience of 4 years. His office, as well as residence, is located in SKC building, Rosemary Street, Agdao Davao city. C. Nature of the Business Amore is an online-based flower shop that belongs to the flower industry or floriculture. This means that Amore will be selling flower bouquet arrangements via social media websites such as Facebook and Instagram. Amore plans to reach potential customers through the smart use of technology and social media promotion. The flower industry or floriculture is fast-growing industry happening on an international scale. According to (Islandrose, 2018), business has been booming over the last two decades as there was an increase in the domestic market’s demand for cut flowers and it grew to such an extent that the Philippines had no choice but to import flowers like orchids and chrysanthemums to meet the demand – particularly on Valentine’s Day, All Saint’s Day, school graduation months of March and April, and the Christmas season. Furthermore, in a cultural and social context in the Philippines, flowers are extensively used for religious celebrations, social life and for gifting to families, friends and relatives (Flora, 2000). The flower shop will receive fresh flowers from a trusted flower retailers, Bukidnon Flowers Supply Wholesale, Puentespina Orchids & Tropical Plants Inc., and Double H Flowers Davao every week. The florist business mainly utilizes cut flowers which are fresh blooms separated from their stems. Only a few people cultivate blooms for cut flowers which is why there is an increasing demand. III. INDUSTRY ANALYSIS A. Future Outlooks and Trends The major product of the Philippine flower industry in the 1970’s was cut flowers. Growers were local hobbyist and plant enthusiasts. Since then, the industry had gone a long way. In the 1980’s, flower industry generated huge profits, thus, it had lots of potential to earn foreign revenues. There were more land area for flower farms to flourish. Growers also adapted to technology as modern techniques and machinery to produce flowers were used by Filipinos (The Philippine Flower Industry, 2008). According to Cardiño and Fernando of Business Mirror (2018), the Philippine Statistics Authority (PSA) reported that cut flowers imposed a decrease of 4.94 percent to 8,886 metric tons (MT), from the 9,348 MT recorded 2 years ago. The peak output of the industry was last 2004, with 23,618 MT. However, general production has been declining for 14 years, PSA’s data showed. Flower industry in Davao is a thriving business. According to Vicky Jimenez, as cited by Banzon (2015), Davao became the supplier of garden installers in the country. In addition to this, the sales of the floral industry of the city were improved by the influx of customers, mainly visitors and guest from all over the country of Kadayawan Festival. It was also mentioned that small business had an opportunity to earn more than what is average. Small floriculture businesses in Davao City are greatly affected by the booming tourism due to the Kadayawan Festival. B. Analysis of Competitors FG Davao – Flowers Gift Delivery Eufloria Sweet Surprise Product They have an They have service and their own online shop and online service and retail shop where in you retail shop. They a retail shop. They can buy bouquets for offer a wide range provide different occasions and of range of products: preserved flower rose. online They an customized They have a wide flowers also offer different kinds arrangements for of chocolates and stuffed different toys some of which in occasions. bouquet form. They also also deliver to your offer food delivery and door steps. an for different occasions, bears, They chocolates and wines. door-to-door delivery. Place Price They have their store in They are located in They are located Lopez Door 91B in Unit 2 Jadeg corner Lastimosa Alley, Jacinto St. corner Building, V, Mapa Barangay Padre Gomez St. Street, Davao City Jaena 9-A, Street, Davao A, City Davao city Their pricing is expensive Their than the average pricing. depends pricing on arrangement Their price ranges the from average to and expensive. selection of flowers. They tend to be more on the expensive side than the average pricing. Positioning The company produces A company that high quality products and serves services. through their own satisfying and unique way. customer products The provides company a very service and products. Promotion They have their their They have their website but they also own website but own website but have a Facebook page. they also have a they also have a They can also be located Facebook Facebook through They can also be They can also be located located the own use of Google Maps. People have page. through page. through the use of Google the use of Google Maps. Maps. The staff is friendly. It is The staff is very They easy to inquire as the approachable. well-trained staff Their staff met the The florist qualifications enough skills to flower needed has a personality. has Packaging They a pleasing The good arrangement skills. jobs. Their packaging varies Most from flowers what they offer, for the have staff creat a staff. had beautiful bouquets. of their Their flowers are in wrapped in flower most of their flowers are packaged a sleeves, some are packaged in posy box, in which stored in a basket sleeves, some they or box. flower in in are baskets, other products specialized are in a vase. They also in. cater flower sleeves. C. Market Segmentation The general public is the main target of this company. This means that the company will directly cater to the needs of the people D. E. F. G. H. Industry and Market Forecast I. J. K. L. M. N. O. P. Q. R. S. IV. COMPANY DESCRIPTION A. Product The company offers an astonishing and beautiful bouquet of flowers that can be delivered right in the customer’s doorsteps. It is available online and it has bundle promos. It costs Php 800 per bouquet, inclusive of the delivery charge, but it can be modified. The customer has the freedom to suggest on how it would look like and what flowers will be used as long it is available in our bundle promo. The order is placed online and Amore delivers it right at the customer’s doorstep. B. Size of the Business The company is sole proprietorship; it will be single-handedly owned by the president of the company, Mr. Marvin So, along with the different teams who will be tasked and assigned in running the business smoothly. There will also be artists who will conceptualize on how to do the customers requested bouquet. The transaction is done online, wherein the customer will inquire through a website, facebook page or instagram account specifically for Amore. The location of the operation is in the resident of the president. C. Office Equipment and Personnel For the preparation of bouquet, desks and chairs that serve as working stations will be needed. Floral refrigerator, also, for the preservation of the freshness of the flower, air-conditioner for the comfort of the personnel, telephone for the calls made by the customers, desktop computer for transactions online, shelves to store the tools used for the bouquet, a fire extinguisher to be used in case of fire, and a motorcycle for the delivery of the bouquet. The company will be hiring experienced florist, the one who will be tasked to create the bouquet that the customer ordered; florist assistant, who will run the errands on the making of the bouquet like cleaning and taking orders; finance officer, they will be the assigned and assist in budgeting in Amore. The web developer is the one who will create the pages in Instagram and Facebook, and soon, create, manage and design the official website. The sales manager will be analyzing the needed quotas in Amore. The operations manager will be overseeing the operations inside the company, marketing managers are assigned to do advertising and selling of flowers of Amore, and Accountant will be overseeing the flow of money in the Amore. Recruits for the delivery team must have a licensed and clear record in the terms of violating traffic rules. D. Background of Entrepreneurs The owner and the president of the company is Mr. Marvin Carstairs M. So. He graduated BS Accountancy in De La Salle University. He is now a Certified Public Accountant and a Master’s of Professional Accountancy. With 4 years work experience as an accountant, He is excellent in numbers and critical thinking. Aleisha Lyn T. Falgui studied BS Computer Engineering in Ateneo de Davao University. She has 2 years experience as a Web Developer at Flatworld Solutions, Inc. She previously designed high-impact, user-centered Web site for small establishments. Amiel Ed Angelo A. Faller studied BS in Mechanical Engineering in Ateneo de Davao University. He offers rental car services to tourist. He also has 5 years experience in driving private limos for people as a sideline business. Axel Angelo D. Cabig studied BS in Business Management in Ateneo de Davao University. He has 3 years experience as a Sales Officer at John Clements Consultants, Inc. Because of this, he developed good computer and interpersonal skills. Erika Dominique E. Bation graduated with a BS in Business Administration major in Marketing Management in University of Santo Tomas. With 3 years work experience as Marketing Manager, she is adept in exploring customer behavior, sales strategies, and advertising. Franz Q. Aclaracion studied BS in Operations Management in University of the Philippines - Diliman. He has 3 years experience as an Assistant Operations Manager at Red Logo Lifestyle, Inc. His experienced molded him to be a person with leadership skill and ability to perform a wide range of duties. Franz Stephen Janlee A. Juezan graduated with a Civil Engineering degree in Ateneo de Davao University. With 4 years experience as a Civil Engineer, he also had a hobby of designing flower arrangements. He attended a total of 3 flower arrangement workshops. Also, he participated in a local competition of flower arrangement and won first place. Henrico Paolo L. Basquez studied BS in Mechanical Engineering in Ateneo de Davao University. He has 3 years experience in selling flowers. He first ran a botique shop at Jacinto St. named Henry’s Flower Shop. Mariane Coleen Macalos graduated with a Master of Administration in Accounting from Ateneo de Davao University. With 5 years work experience as account, a master’s of accounting also position its holder well to sit for such exam as Certified Management Accountant. Sarah Jayne C. Frigillana graduated with a BS in Industrial Engineering in Ateneo de Davao University. However, she had various trainings and workshops in flower arrangement. Aside from being and Industrial Engineer at Marriot International, she works sideline as an occasional flower arrangement designer at weddings and debuts. V. PRODUCT PLAN A. Physical Plant B. Machinery and Equipment MACHINERY/EQUIPMENT QUANTITY AND PRICE PER PIECE 4 pieces PHP 3000 each PURCHASE LOCATION Mandaue Foam and Furniture Desk 4 pieces PHP 1,500 each Mandaue Foam and Furniture Chairs 2 pieces PHP 30,000 EMCOR Davao 1 piece PHP 70,500 EMCOR Davao Air conditioner Floral Refrigerator 1 piece PHP 2,500 Marbex Enterprises, Davao City Fire Extinguisher 1 piece PHP 1,100 Columbia Computers, Davao City Telephone 1 piece PHP 30,900 Columbia Computers, Davao City Business laptop 1 Piece PHP 50,900 Honda Buhangin, Davao City Business Motor 2 pieces PHP 8,000 Mandaue Foam and Furniture Wall Shelves C. Name of Suppliers for Raw Materials Suppliers Bukidnon Flowers Supply Wholesale Puentespina Orchids & Tropical Plants Inc. Double H Flowers Davao VI. OPERATIONS AND DEVELOPMENT PLAN A. Description of the Company’s Operation (state no cancellation of orders) The workspace is located at Rosemary Street, SKC Building, Agdao, Davao City which is the owners’ residence of the online business. It indicates that the business does not need to rent a space for the industry, thus it gives a lesser expenses for the company. Having a one workplace, it provides sustainability framework for approaching everything the workers do and it is designed to secure the products that are ready to deliver. The supplier of the flower boutique comes from the production of Bukidnon Flowers Supply Wholesale, Puentespina Orchids & Tropical Plants Inc., and Double H Flowers Davao. The supplier will deliver fresh flowers every week and these fresh flowers are cut flowers and have flower buds that have been cut from the plant suitable for bouquets, wreaths, corsage and special flower arrangements. The inventory will be done from time to time B. Flow of Orders for Goods Supplier to Amore Amore to customers C. Technology Utilization The primary appliance to be used for delivering the products is the motorcycle with the use of the up to date GPS to guide our delivery guys to the accurate location of the customer, giving them directions and routes for faster delivery. Second, there is a need of radio in every delivery guy which is use to have a connection in the main office in case of any concerns while delivering the products. Third, computers and telephone are needed for the transactions of the orders from the customers as the tool of communication with the client. These technologies are required and will be used for a quick bargain with the clients’ order. VII. MARKETING PLAN A. Pricing Considering that Amore is a fresh business, the pricing strategy that will be used is follow-the-leader pricing to match other competitors in terms of pricing. Follow-the-leader pricing puts the company in a comfortable spot where prices will not be a factor for customers in choosing for a flower shop because it will be the same. They will instead focus on other aspects like services and flower qualities. Before we follow the follow the prices of leading companies, we will set the initial prices for all of our products to P800. This includes delivery and other services. From then, it is susceptible to change depending on the leading company. B. Distribution Amore aims to have a direct producer-consumer relationship as we will deliver the products to customers. This means that there will be no distributor or retailer. We also deliver to other people that the buyer wants to be given flowers if requested. We plan to deliver the products through direct marketing via our website and hotline. The delivery will be within Davao City Area only. Franchising will be considered but will depend on the future state of the company C. Promotion Since Amore is an online company, our main channel to reach our customers is through smart use of technology and social media promotion such as online advertisements and promotional page on social media platforms. This way of promotion covers the younger demographic of our customers, ideally aged 20 to 45 years old. To reach our older demographic which we expect to be 46 years old and above, we plan to promote our company through print publications such as flyers, brochures and posters. Another way of reaching them is through radio advertisements. VIII. MANAGEMENT TEAM A. Organization Plan This business is a sole proprietorship kind of business which means that it is the simplest business under which only can own the business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. There will be no partnership produced by this company, but there will be suppliers, mainly flower wholesalers and flower plantation business, because they are the main supplier for our flower shop business. B. Description of The Management Team Owner: A business owner’s job duties can run the gamut from hiring staff to arranging financing. Specific activities will vary according to the business’ category, size and industry. In general, business owners are responsible for the growth, stability, direction and daily operation of the business. Owners should know their domain and their business to handle it properly. Florist: Floral Designers, also called Florist, cut and arrange live, dried, and silk flowers and greenery to make decorative displays. They also help customers select flowers, containers, ribbons, and other accessories. Florists should have attended at least 5 flower arranging workshop. Thus, they should have a creative mind in order to produce the best flower designs. The florist of this business will be Henrico Basquez and he will be receiving P20,000 per month. Florist Assistant: Cleaning and Performing Administrative Tasks. Floral Assistants also do administrative tasks, such as taking orders, making follow-up calls, arranging deliveries and helping type proposals. A floral assistant will have the same qualifications as the florist. They should also be good at designing and assisting to give the florist the support they needed. The florist assistants will be Franz Juezan and Sarah Frigillana. They will both receive P15,000 each. Finance Officer: A finance officer job description generally include assisting in the preparation of budgets, managing records and receipts, reconciling daily, monthly and yearly transactions. The finance officer is the key point of contact for other departments on financial and accounting matters. Finance officers should be a graduate of any Accounting, Finance or Business course with at least one year experience in the field. The finance Officer of this business is Axel Cabig. He will be receiving P15,000 per month. Operations Manager: An operation manager is a senior role which involves overseeing the production of goods and/or provision of services. It’s an operations manager’s job to make sure an organisation is running as well as it possibly can, with a smooth efficient service that meets the expectations and needs of customers and clients. Operations manager should have a Bachelor’s degree in any business-related field. He/she should have a strong leadership skill and ability to perform a wide range of duties. Franz Acclaracion is the future Operations Manager of this business. His salary will be P25,000. Sales manager: Sales manager lead a sales team by providing guidance, training and mentorship, setting sales quotas and goals, creating sales plans, analyzing data, assigning sales territories and building their team. A sales manager should have a bachelor’s degree in Business Administration, Statistics or Mathematics. He/She should have good computer skills. The Sales Manager will be Coleen Macalos. She will receive P25,000 monthly Marketing Manager: Duties of the marketing manager include managing all marketing for the company and activities within the marketing department, developing the marketing strategy for the company in line with company objectives. Marketing Managers also manage and improve lead generation campaigns and measuring results. A marketing manager should be a graduate of a Marketing or Business Administration. He/She should have at least 2 years experience on the field. Erika Bation will work as this business’ Marketing Manager. She will be receiving P25,000 monthly. Accountant: An accountant prepares asset, liability, and capital account entries by compiling and analyzing account information, documents financial transactions by entering account information, recommends financial actions by analyzing accounting options and substantiates financial transactions by auditing documents. Accountants should have a degree in Accounting. He/She should be good in interpersonal and analytical skills. The accountant of this business is the owner. Web Developer: The web developer is responsible for designing, coding and modifying websites, from layout to function and according to client’s specifications. Strive to create visually appealing sites that feature user-friendly design and clear navigation. A web developer should have a degree that is related to Computer Science, preferable Information Technology or Computer Engineering. They must possess an understanding of programming, database management and design. Aleisha Falgui will receive P15,000 per month as she will be the business’ Web Developer. Delivery Boy: The delivery drivers transfer goods from areas of production to personal homes and businesses and duties and training vary depending on employer. The job may include filling out papers, loading and unloading goods, and talking with customers. The driver should be at least a high school graduate. A delivery boy should have at least 3 years of driving experience, and should be patient, and have a proper driver’s license. Amiel Faller, the business’ future delivery driver, will receive P 15,000 as his salary. C. Plans for Recruiting and Training Employees The company will hire the best staffs and florist by posting an Advertisment online. The requirements will be a college diploma and a college degree of their respective position. The company will also observe the employee’s personality if it fits the designated position. The company will uphold programs that will help the employees to muster their skills and instincts about their position, like Flower Arranging P rogram for the florists, not only to muster their skills but also to showcase their talents and abilities. For the staffs like managerial positions, they will attend a Leadership program because in that kind of position leadership is the most essential trait that shoud be polish because they are the heads of the company, they will lead the company to success. For the developing team like accountant, and web developer, they will attend a Developing and Masteral Program because they need to be wise and able to think critically. These programs will help the staffs of the company to work well about their designated positions to help the company grow and stabilize. VIII. ASSESSMENT OF RISK A. Evaluate weakness(es) of the business The business, being a 24/7 online shop but having delivery hours of 8am-10pm, would need to face traffic, availability of service/workers, delivery time, competition, location, prank callers, weather, accidents that may happen during work hours and are liable for the products given to the customers. Problem Assessment Traffic Delivering the flowers to the customers, especially to those in far places have a high chance at encountering traffic, thus delaying the delivery Availability of Service/Workers Serving the customers would require a lot of workers to accommodate each customer to their particular timeline/schedule Delivery Time In times like traffic and accidents can cause delay in delivering the product to the customer and may cause hindrance in the productivity of the workers Competition The city is full of flower shops and would result to a decrease in sales and the competition might try to persuade other customers to their products Location Delivery time will depend on the location desired by the customer, and that can sometimes be a problem, especially in areas that are inaccessible or private. Prank Callers/Orders The business will receive orders online and through calls and pranksters might interfere with the transactions Weather Bad weather can lead to delay in the deliveries, it can also affect the condition of the flowers Accidents Staff/workers may be injured or be in an accident that may need them to rest, thus having less workers Liability of product Possibility of giving the customers bad products B. Contingency Plans For each problem, there will be a contingency plan to solve it Problem Contingency Plan Traffic The use of small transport/cars in order to pass through traffic more quickly, also knowing the area would help because it can lead to shortcuts for faster delivery Availability of Service/Workers Having shifts/schedules for the workers Delivery Time Have something to compensate to the customer for being late, otherwise, don’t be late by working more quickly and efficiently Competition Offer unique and amazing products that will stand out from the competition and also give quality service Location The drivers/deliverers should know the area and find out which is the fastest route to the delivery point. Prank Callers/Orders Verify first if the caller/order is legit before we proceed to transacting it by giving the necessary information Weather Being updated on the weather and informing the customer whether or not the delivery will be delayed due to bad weather Accidents Have medical equipment/first aid in the workplace Liability of product The flowers should first be monitored/observed before sending it to the customers. The drivers must also be careful in bringing the product C. New Technologies The business will be using the latest equipment for marketing and security. Also, since this is a flower delivery business, any type of trend can be applied to further enhance the flowers and how they’re delivered. The business will use up to date GPS to guide our delivery guys to the accurate location of the customer, giving them directions and routes for faster delivery. The utilization of fast internet connection can help in getting in touch with the customers while also using social media to gain popularity and promote the business.