CHAPTER 1
FEASIBILITY BACKGROUND AND COMPANY DESCRIPTION
Introduction
It is ingrained in the Filipino culture to have a strong passion for food, and they are known
for their willingness to explore unfamiliar cuisine to satisfy their cravings. Food has always
been a source of enjoyment for Filipinos, and they often indulge in mid-morning snacks
and afternoon merienda. Despite the potential health effects, Filipinos have a vast selection
of food options and are not always concerned about consuming a variety of meals. To
address this issue, the proponents have introduced a new type of chicharon called
"macaroni chicharon" in the market.
However, many people were heightened by their fear to try and eat chicharon,
because it is rich in fats and cholesterol, which may be dangerous to one’s health. Macaroni
is majority made with Durum wheat, a hard wheat which creates chewy, resilient pasta.
Pasta is low in fat, sodium, and calories, high in protein, free of cholesterol, and enriched
with vitamins and minerals. Combining these two, makes a great chicharon with the same
flavor and taste, but less of the fats and cholesterol.
The proponents target customers are the "health conscious" and worried about their
diets and overall well-being. The proponents try to educate the customers about the
advantages of this product and how it will help and improve their health to be free from
common and serious illnesses. It was discovered that they contribute a sizable amount of
nutrients that our body needs.
Therefore, the proponents came up with the idea of creating a healthy alternative to
pork chicharon. Chicharoni is made in macaroni. This is a healthier substitute of pork
chicharon, which needs to be recommended/introduce snack in the Philippines. It may be
used for afternoon snacks, movie marathons with family, or beer night with your friends.
This is an excellent snack anytime you want it.
Historical Background
According to Lillian Borromeo, a Filipino food historian, chicharon entered our
shores during the early Spanish colonial regime. Two kinds of chicharon were eaten at that
time and it separated the rich from the poor. For their hors d'oeuvres, the illustrados got
"chicharon with lean meat"-which might be familiar to you as chicharon laman-while us,
the indios, got the airy plain pork rind-chicharon ampaw. Many people, especially in the
Philippines, are totally addicted to the pork chicharon. However, due to its effects on
human health, including heart diseases and the potential for high cholesterol, this wellknown pork chicharon is not recommended. (Borromeo, 2018)
Chicharon is created from deep-fried, golden pork rinds. It is often crunchy and
flavorful and is eaten at its best with a hot vinegar dip. These delectable cracklings, which
typically consist of fried pig belly or pork rinds, have assumed many different forms in
Philippine cuisine and can also be made using chicken skins, pork ears, intestines (isaw),
omentum (bulaklak), tuna skin, and chicken ears. (Manalo,2019)
Review of Related Literature
Chicharon as a Global Delicacy
With regard to chicharon, it's production has spread around the globe,
particularly to countries with sizable Spanish influence, such as South America and the
Hispanic states of the US. The Industrial Revolution starts in the Black Country of the UK,
where pig scratching has been practiced since the 1800s. The working class frequently
prepares and consumes the cuisine. Pork scratching is prepared in a manner that is virtually
identical to that of Carcar's chicharon. In the 1930s, the UK's pork scratching industry
expanded to include more than 20 million bags annually, and it finally became a symbol
of British cuisine. According to Campion (2019), thin pig rind is what makes up the basic
form of pork scratching up till it gets crispy.
According to Brown (2020), pork scratching' sales in the UK have climbed by 10%
in the last two years, outpacing sales of other snacks. Yet, despite increasing sales over
time, it only accounts for a small share of the UK snack industry. Pork rinds in the United
States have their origins in southern American states that were previously part of the
Spanish Empire. According to Wells, the manufacture of pork rinds is now a
commercialized, billion-dollar enterprise, with 100 to 120 million pigs slaughtered each
year, creating around 650 million pounds of skins.
Despite the fact that the Philippines' chicharon industry is not as technologically
sophisticated as that of the United States and the United Kingdom, it has become an integral
element of Filipino cuisine as viands, snacks, appetizers, and other dishes. According to
Lee (2018), chicharon is the "Doritos of the Philippines," where people munch on it as a
finger meal and open it while watching a movie, functioning as a complement while doing
other things. A community in Santa Maria, Bulacan, has formed a Chicharon Festival,
which is held every first Thursday of February, as a tribute to the Filipinos' profound
passion for it. According to Patricio (2015), during the festival's procession, individuals
wear chicharon costumes; there are also festival competitions in which chicharon is the
major element.
Some persons involved in chicharon company can better their way of living.
According to Salvador, his chicharon firm begins with a small capital but with significant
patronage from their customers and assistance from several non-governmental groups.
They are able to develop their business, fund their children's education, and purchase
houses, which considerably improves their financial situation. Rey Lapid, another wellknown chicharon shop owner, began his venture in his parents' home in Sampaloc, Manila,
Philippines. According to Lapid, "despite adversity, he perseveres in developing his firm
and devising inventive strategies to better his products and separate his competitors'
offerings." In 2012, he expands his first store to 100 stores and employs 3000 people.
(ManilaTimes, 2013)
Cebu is well-known in the Visayas for its chicharon, which draws a large number
of tourists to the province. According to Lorenciana (2012), Cebu is one of the most
popular tourist destinations in the Philippines, with a reasonably high demand for its finest
native foods, which stimulates the tourism sector and sustains traders' livelihoods.
Chicharon and other delicacies are offered around the rotunda in Carcar City, which serves
as a crossroads to the province's southern regions. According to Market Manila, purveyors
of chicharon and other delicacies entice both visitors and locals to purchase the goods.
Chicharon Business Industry
The chicharon baboy industry, according to food historians, chicharon is generally
made of deep-fried pork rind. Its origin can be traced from an agricultural region of Spain
named Andalucia. Its named Chicharon came from their language “ Chicharron refers to
fried pork skin". The Spanish brought the chicharron in the Philippines during their
colonialism, and only Illustrados can eat those chicharon. Chicharon had occasionally
already been widely known in the Philippines under names like pork cracklings and pork
rind. According to DTI there are many chicharon business in the Philippines, especially in
the Cebu City which provide any kind of chicharon. There over 20 chicharon maker’s in
around Davao del Sur.They sell over thousands of chicharon every day. Chicharon evolved
in different kinds of places in the Philippines such as Sta. Maria, Bulacan and also in Cebu.
Statistics says that 4% of the economic relevance are contributed by chicharon vendors in
the Philippines.
Every company contributed in the Economic Standee of the Philippines. Bansalan
has patrionized chicharon, because most of the people selling chicharon in Bansalan are
"Vendors in Foot". Most people living in Bansalan area are known of eating pork and meats
so not to waste skin and some part of the pig’s body, they come up to the idea of having
chicharon. It’s the culture of the Filipino to eat chicharon. It’s not new to them to meet
another product of chicharon. As foreseen, that chicharong baboy will be saleable because
not just kids are eating chicharon but also adults. They are fond of eating chicharong baboy.
Chicharon Baboy is best to be dipped in a spicy vinegar with chop garlic. This snack
food is not just for snacks but also for any other things, it could be best when partnered
with “atsara” or bagoong, this tastes like the most delicious snack ever. Chicharon is not
just made for the snacks it also made to be partnered with rice, especially during lunch
time. It is the best time to have this, when you have no other food to eat. It can satisfy the
food that you wanted, especially when you are craving pork and meats and not enough
money to buy. The areas we considered to market our chicharon are in school, park and in
the bus and jeepney terminal.
Industry Analysis
Chicharon has become a significant contributor to the stakeholders of our
country. Many workers attribute their ability to provide education for their children and
improve their family's quality of life to employment opportunities within the chicharon
industry. The close working relationship between the barangay and city officials and the
chicharon businesses and their workers has been noted as a contributing factor to their
politico-economic success. According to Lorenciana (2012), the majority of workers and
owners attest to the significant positive impact of the chicharon industry on their families.
Successful business management has allowed long-time workers and owners to purchase
properties and contribute to the overall growth of the industry.
Regarding the contributions of the chicharon industry, it is a significant source of
employment within the city, providing a stable source of income for those involved in the
business. The KIs have reported that the oils and crumbs from the production of chicharon
are sold to other places and used as ingredients in baking other popular delicacies in the
province. Additionally, the industry has helped to boost the city's revenue through
certification permits and, notably, taxes, as reported by barangay and city officials.
Furthermore, the chicharon business provides financial support to various sectors, which
aids in the development of a thriving city. Therefore, the chicharon industry plays a crucial
role in sustaining the city's vibrant economy.
Project Proponents
Name
Address
Alviz, Mark Christian
Cristo Rey, Capas, Tarlac
Cunanan, Joben
Cristo Rey, Capas, Tralac
Labasan, Dane Russel
Cristo Rey, Capas, Tarlac
Pascual, Maureen
PAVHA, Santa. Lucia, Capas, Tarlac
Peña, Aldrine Ryan
Kalangitan Cut-Cut 2nd, Capas, Tarlac
Table 1.1 Project Proponents
Company Name
The proponents established a partnership and filed it with the Securities and
Exchange Commission under the name "Chicharoni Corporation," which was created by
combining the terms for Chicharon and Macaroni, respectively.
Business Name and Logo
The partners named the shop after the product they sell, known as “chicharoni”,
giving the simplest idea that the shop offers a unique take on chicharon, making it less fat
and cholesterol but tasteful as the regular chicharon or even tastier. Giving a business name
with a literal chicharon and macaroni, combined, gives an idea to the market the simplicity
of the product while integrating how unique it is.
“Macaroni” refers to an elbow pasta that was made from hard wheat. This signify
the main ingredient of the product which is much healthier than the regular chicharon made
with pork.
“Chef’s Hat” represents the objective of the product to not only provide a healthier
chicharon for the people but also a tasteful, flavorful, and crunchy chicharon.
Humanizing the macaroni gives the market the idea that the product is healthfriendly, and animal-friendly. This also represents the values that the workers embody in
the chicharoni business. Being friendly to the customers makes connection to them and
encourages them to become a repetitivecustomer.
Figure 1.1 Business Logo
The concept behind the business logo is to embody simplicity at its best. The
intention was not to overload the design with various elements that may detract from the
essence of the product's delicious taste, which is what customers truly value. Despite
Chicharoni having a superior texture compared to regular chicharon, the logo's design
seeks to make the product easily identifiable by customers, promoting a strong sense of
brand identity.
The business name of “Chicharoni” has an outer layer of color yellow to emphasize
the business title. While the tagline is colored black to be able to read easily and may
capture the attention of the potential customers.
Unique Selling Proposition
Our product offers several benefits to consumers. Firstly, it does not contain any
harmful preservatives that can compromise their health. Additionally, it has a lower
cholesterol content compared to regular pork chicharon. Natural spices and flavors are used
to enhance the taste of the product. It is suitable for consumption by both children and
adults, making it a versatile snack option. Furthermore, it is available at a more affordable
price compared to pork chicharon.
To kick off our store's opening day, we plan to offer a special promotion to the
first 50 customers who visit and purchase any flavor of our product. Each customer will
receive a discount voucher, as a gesture of appreciation for their support.
In addition to the in-store promotion, we recognize the power of social media in
reaching a wider audience. We plan to leverage social media platforms such as Facebook
and TikTok to promote our product, as these platforms have the potential to reach a large
number of people quickly. By utilizing social media, we aim to attract new customers,
engage with potential customers, and increase brand awareness in the market.
Company’s Vision, Mission, and Core-Values
Mission

To delight our customers with the crispy and savory goodness of Macaroni
Chicharon while maintaining a commitment to quality, innovation, and
sustainability in every aspect of our business.
Vision

To become the leading producer of Macaroni Chicharon globally, known
for our unwavering dedication to producing the finest quality snacks,
fostering a culture of continuous improvement, and contributing to a
greener and healthier world.
Objectives

To produce and distribute high-quality Macaroni Chicharon that consistently
exceeds customer expectations, building a loyal customer base and fostering
growth in the snack industry.
CHAPTER 2
ORGANIZATION AND MANAGEMENT ASPECT
Determining the tasks required to accomplish the goals in the most cost-effective,
efficient, and successful way is the process of organizing. It organizes the links between
roles, which build the system as a whole and guarantee its smooth operation. All activities
are separated into several works or jobs under organization. Competent individuals who
become specialists by repeatedly doing a task are hired for each sub-work. In this manner,
the most amount of work is completed in the shortest amount of time, and the organization
gains the advantages of specialization. The clarity of employee working relationships is
another aspect of organization. It details who needs to submit reports to whom. In order to
assign responsibility and transfer power, communication is essential.
Form of Business Organization
"Chicharoni" is a registered General Partnership with the Securities and Exchange
Commission. Partners split tasks, obligations, and profits and losses among themselves in
this sort of organization. The following are the advantages of the chosen type of
organization over a corporation: ease of formation, simple structure, minimal start-up cost,
and few procedures. Furthermore, partners pool their contributions to a joint fund. One
may provide money, while the other might contribute industry.
Business Structure and Culture
Management Aspect
Organizational Chart
Macaroni Chicharon
(Chicharoni)
Owner
Production Manager
Cashier
WORKERS
Figure 2.1
Management Style
The business will be managed in a directive (coercive) and authoritative (visionary)
manner. Coercive managers maintain strict control over staff and rely on the prospect of
repercussions to motivate them to comply. In urgent circumstances, this type of
management can be helpful. A manager who uses an authoritative approach motivates staff
by outlining his or her goals for the company. This management approach creates the most
supportive work environment and engages people throughout times of organizational
transition. However, in order to avoid coming across as overpowering, authoritative
managers must appreciate the knowledge and expertise of their staff.
Budget Capitalization
The firm shall be registered with the Securities and Exchange Commission (SEC).
It has a capital of One Million Five Hundred Thousand Pesos (Php1, 500,000). Each partner
contributed Three Hundred Thousand Pesos (Php300, 000) to the firm.
Job Description and Specifications
POSITION/QUALIFICATION STANDARD
PRODUCTION MANAGER
Job Specification

Male or Female 18-35 years old.

At least High School graduated.

Understands health and safety laws as well as quality standards.

Has in-depth knowledge of production management.

Understands budgeting and performance evaluation concepts.
Job Description

Estimate and negotiating with clients and managers.

Plan and organize the company's production schedules.

In charge of selecting, ordering, and purchasing materials for a production.

Establish quality control standards for materials used in manufacturing.
CASHIER
Job Specification

Male or Female 18-35 years old.

Hardworking

Capable of processing financial matters.

At least High School graduated.
Job Description

Receiving payments and issuing receipts

Using scanning devices

Greeting Customers

Answering customer questions, receiving returns from customers, and managing
the cash drawer.

keeping a record of all payments made with cash and credit
WORKER/HELPER

Male or Female at least 18-40 years old

Check and maintain the equipment/machineries.

Operate the preparation of the product

Manage the stocks of products

Keep a clean workplace environment for the safety of the product.
RULES AND REGULATIONS
 SAFETY FIRST
o Sanitize – wash hands, and maintain good hygiene.
o Personalize – don’t use others utensils and personal belongings.
o Separate- don’t cross contaminate, avoid using one utensil in every product.
o Cook- check the proper temperature and always use appropriate food
thermometer.
 Maintain a clean record with the local government
 Sanitize and keep the working area clean
SHOP SCHEDULE
MONDAY TO SUNDAY
OPENING
9:00 AM
CLOSING
6:00 PM

You must obey the work schedule. Attend the working days given in your schedule.

If you are going to be absent from work you must tell your bosses or manager before
your schedule, and if you are going to be late inform who was on duty hour before
your schedule.

You need to write the time the time you start to work and the time you end your
shift in the log in book.
Performance Evaluation
Upon regulation, the management evaluates the job performance of its employees
once a year. Salaries and wages will be increased by 5% annually depending upon the
performances exhibited by the employees.
Security of Tenure
SOCIAL SECURITY SYSTEM
When members of this system are unable to work because of illness, disability,
pregnancy, old age, or death, it is intended to safeguard them. SSS will compensate an
employee who becomes ill with their equal daily wage times the amount of days missed.
In order to make up for the time a female member would be away from work due to
childbirth, SSS pays the employee's wage for two months. The SSS also functions as a
pension plan for its members by returning their monthly contributions once they have left
their jobs. The employee's actual monthly pay is used to calculate the SSS contribution
amount. 30% of the monthly contributions are withdrawn from employee salaries, while
the remaining 70% are subsidized by the employer.

Disability
It is granted depending on the severity of the disability claim.

Sick Leave
Every employee who has rendered at least one year of service shall be entitled to a
yearly service incentive leave of five (5) days with pay. (Article 95 of the Labor Code of
the Philippines)
Maximum of total sick leave is fifteen (15) days. All unused leave days are
convertible to cash of each year.

Maternity Leave Benefit
“The provision Article 133 states that the Section of Labor and Employment shall
implement and maintain strict standards that will guarantee the health and safety of female
employees”
A covered female employee, who is able to contribute at least three monthly
contributions within the twelve month period or prior to the semester that she gave birth,
had an abortion or miscarriage is eligible benefits for maternity leave. A female employee
shall be given financial benefit which is cash equivalent to one hundred percent of her
current basic salary allowances and other benefits.

Paternity Leave Benefit
Grand paternity benefits are given to all married male employees whose spouses
are about to or have given birth – seven (7) days with full pay to attend the needs of legal
wife before, during and after delivery.
PHILIPPINE HEALTH INSURANCE (Phil Health)
Employees are given health and hospitalization subsidies should they or a
dependent be hospitalized. Monthly contributions are based on actual employee monthly
salaries and the amount of employee contribution is matched equally by the employer.
HOME DEVELOPMENT MUTUAL FUND (PAG-IBIG)
The company provides to its members the lowest interest housing and land
acquisition loans that are payable for up to 30 years. This gives every employee an
opportunity to own a house in easy-payment plans that can be directly be deducted from
his/her monthly wages.
Working Hours
EMPLOYEES SCHEDULE
Production Manager
Mon
Tues
Wed
Thurs
Fri
Sat
Production 9:00-
9:00-
9:00-
9:00-
9:00-
Day off 9:00-
Manager 1 12:00
12:00
12:00
12:00
12:00
12:00
Lunch
12:00-
12:00-
12:00-
12:00-
12:00-
12:00-
Break
1:00
1:00
1:00
1:00
1:00
1:00
1:00-
1:00-
1:00-
1:00-
1:00-
1:00-
3:00
3:00
3:00
3:00
3:00
3:00
3:00-
3:00-
3:00-
3:00-
3:00-
3:00-
3:15
3:15
3:15
3:15
3:15
3:15
3:15-
3:15-
3:15-
3:15-
3:15-
3:15-
6:00
6:00
6:00
6:00
6:00
6:00
Coffee
Break
Sun
Workers
Mon
Tues
Wed
Thurs
Fri
Sat
Sun
Day off
9:00-
9:00-
9:00-
9:00-
9:00-
12:00
12:00
12:00
12:00
12:00
12:00
Lunch
12:00-
12:00-
12:00-
12:00-
12:00-
12:00-
Break
1:00
1:00
1:00
1:00
1:00
1:00
1:00-
1:00-
1:00-
1:00-
1:00-
1:00-
3:00
3:00
3:00
3:00
3:00
3:00
3:00-
3:00-
3:00-
3:00-
3:00-
3:00-
3:15
3:15
3:15
3:15
3:15
3:15
3:15-
3:15-
3:15-
3:15-
3:15-
3:15-
6:00
6:00
6:00
6:00
6:00
6:00
Day off
9:00-
9:00-
9:00-
Worker1 9:00-
Coffee
Break
Worker2 9:00-
9:00-
9:00-
11:00
11:00
11:00
11:00
11:00
11:00
11:00-
11:00
11:00
11:00
11:00
11:00
12:00
12:00
12:00
12:00
12:00
12:00
12:00-
12:00-
12:00-
12:00-
12:00-
12:00-
2:00
2:00
2:00
2:00
2:00
2:00
2:00-
2:00-
2:00-
2:00-
2:00-
2:00-
2:15
2:15
2:15
2:15
2:15
2:15
Lunch
Break
Coffee
Break
Cashier1
Cashier2
Lunch
Break
2:15-
2:15-
2:15-
2:15-
2:15-
2:15-
6:00
6:00
6:00
6:00
6:00
6:00
Mon
Tues
Wed
Thurs
Fri
Sat
Sun
Day off
9:00-
9:00-
9:00-
9:00-
9:00-
9:00-
12:00
12:00
12:00
12:00
12:00
12:00
12:00-
12:00-
12:00-
12:00-
12:00-
12:00-
1:00
1:00
1:00
1:00
1:00
1:00
1:00-
1:00-
1:00-
1:00-
1:00-
1:00-
3:00
3:00
3:00
3:00
3:00
3:00
3:00-
3:00-
3:00-
3:00-
3:00-
3:00-
3:15
3:15
3:15
3:15
3:15
3:15
3:15-
3:15-
3:15-
3:15-
3:15-
3:15-
6:00
6:00
6:00
6:00
6:00
6:00
9:00-
9:00-
Day off
9:00-
9:00-
9:00-
9:00-
11:00
11:00
11:00
11:00
11:00
11:00
11:00-
11:00-
11:00-
11:00-
11:00-
11:00-
12:00
12:00
12:00
12:00
12:00
12:00
12:00-
12:00-
12:00-
12:00-
12:00-
12:00-
2:00
2:00
2:00
2:00
2:00
2:00
15mins
Break
2:00-
2:00-
2:00-
2:00-
2:00-
2:00-
2:15
2:15
2:15
2:15
2:15
2:15
2:15-
2:15-
2:15-
2:15-
2:15-
2:15-
6:00
6:00
6:00
6:00
6:00
6:00
Meal and Rest Periods
On an eight-hour workday, employees are entitled to a one (1) hour break for lunch under
Article 83 of the Philippine Labor Code. Additionally, employees are entitled to brief,
sufficient rest times in the morning and afternoon that will be deducted from their total
number of hours worked. Employees can take advantage of these 15-minute rest intervals
to have a coffee or food.
Dress Code
During working hours, employees must wear their correct uniform. The
organization pays for uniforms. The business as a production aspect, it requires the
personnel to wear hair net to avoid hair from falling to the food/product.
13th Month Pay
According to Presidential Decree No. 851, regardless of the type of their work, all
Filipino employees are entitled to a year-end bonus that is equal to one (1) month's wage.
No later than December 24 of each year a worker is employed, the 13th month salary is
due.
Holiday and Special Holiday Pay
Regular Holidays are considered rest days such as:
January 1
New Year’s Day
April 9
Araw ng Kagitingan
(Movable Date)
Maundy Thursday
(Movable Date)
Good Friday
May 1
Labor Day
June 12
Independence Day
November 1
All Saints Day
November 30
Bonifacio Day
December 25
December 30
Christmas Day
Rizal Day
And other unpredictable circumstances.
Regarding holiday pay, the Labor Code of the Philippines provides that every
worker shall be paid with his regular daily wage during regular holiday.
Overtime/Night Shift/Special Holiday/Rest Day Pay
Work may be done past eight (8) hours per day in accordance with Article 87 of the
Philippine Labor Code as long as the employee receives overtime pay in an amount at least
equal to twenty-five percent (25%) of his normal salary. Work that lasts more than eight
hours on a holiday or rest day must be compensated at least thirty percent (30%) more than
the rate for the first eight hours on the holiday or rest day.
Every employee must get a night shift differential of at least ten percent (10%) of
his usual income for each hour of work completed between the hours of ten in the evening
and six in the morning, according to Article 86 of the Philippine Labor Code. Additionally,
according to Article 93 of the Philippine Labor Code, if an employee is required to work
on a non-working holiday or on a day when they are scheduled for a rest, they must get at
least 30% of their usual pay in additional compensation.
Service Incentive Leave
An employee who has worked for a firm for at least one (1) year is entitled to five
(5) days of paid leave per year under Article 95 of the Philippine Labor Code. The employer
may be able to require the employee to take a required leave of absence with pay if they
choose not to use these paid leaves, or they may convert any unused paid leaves into cash
equivalents that will be distributed at the end of each year.
Code of Conduct
Each employee is required to have or possess and observe the following
characteristics:
Honesty and Integrity

Honesty and confidence

Security breach
Proper Decorum and Work Ethics

Professionalism

Ethical standards
Job Performance

Competency

Productivity, efficiency and effectiveness

Diligence, prudence, and dedication toward work responsibilities
Administrative Conduct and Behavior

Punctuality and attendance

Leave balances

Uniform

Prudent use of business property

Health safety and security
CHAPTER 3
MARKETING ASPECT
Marketing is the practice of consistently and successfully exceeding target
consumers' expectations in terms of requirements, wants, and satisfaction. (Welmet,
2019). The 3Cs—companies, customers, and competitors—are the essential
elements of marketing. The marketing plan that the supporters have developed is
covered in detail in this chapter. The majority of the data in the next chapters will
be based on all the materials and statistics that are presented here as a starting point.
Each element adds up to a thorough examination of the market to be investigated,
with the criteria set and all the factors that affect it.
Product/Service Description
Chicharoni is a new product on the market, but it will provide you with a
delicious and healthier snack chicharon that will surely satisfy your cravings at an
affordable price. Chicharoni offers you a different flavor that you can freely choose
depending on your taste buds or preference.
The benefits of our product are that we don’t use any preservatives that can
harm our consumers because our product has a lower cholesterol than the usual Pork
Chicharon that we eat, our product contains natural spices and flavor to taste, it can
be consume by children to adult age, and it has a cheaper cost than the pork
chicharon. Foods without preservatives can lessen the morbidity rate of one’s
person. Preservatives was defined by a study of Michigan State University, 2017,
that can cause a person to consume more sodium and saturated fats, raising LDL
cholesterol (bad) levels. Eliminating processed foods from one’s diet will
help avoid inflammation, lower your risk of heart disease, manage the weight, and
reduce the number of toxins in the body.
Target Market Description
Chicharoni will be located in front of TM 666 and beside of botica villa
fuerte, we're also near on the loading place of jeepney's going to Angeles, Capas,
and Tarlac and to the public market. It is very accessible and convenient for us and
our consumers to sell and consume our product. We chose this location because
there are people in the public market who are going to take a jeep to their designated
places where they can stop for a snack if they get hungry. Target market study is
the only effective way to optimize marketing resources. Our primary target market
are the people that travels a lot, as they are the one’s who typically buy
“pasalubong” products such as chicharon. Moreover, chicharon is also one of our
go-to foods while travelling.
The more the proponents know about their potential customers, the better
the firm will be able to make decisions that will improve and enhance the ability to
communicate and connect with the customers.
The division of a market into smaller pieces is known as market
segmentation. When creating a marketing mix to target a certain market segment, a
company can aim to better and more profitably fulfill its clients by finding distinct
groups of individuals with very similar wants.
Chicharoni will be located in front of TM 666 and beside of botica villa fuerte, we're also
near on the loading place of jeepney's going to Angeles, Capas, and Tarlac and to the
public market.
Following the identification of market categories, target markets must be
determined since, the better informed the proponents are on their potential clients,
the better the business will be able to make choices that will increase and improve
the capacity to connect and interact with the clients.
TARGET MARKET
CHICHARON LOVERS/POSSIBLE
SEGMENTATION
CUSTOMER
Demographic
 Income Level: Middle and high
income
 Profession: Working professionals,
Students, Traveler, or another
possible reseller
Psychographic
 Values: Willing to pay, quality and
service-oriented
 Attitudes: Busy working life, time
saving, outgoing
 Personality: Stressed, busy, prefer
fast services, and seek for
Convenience
Geographic
 Selected Barangays in Concepcion, and
their convenience store (
Behavioral
 Benefits desired: Convenience, time
saving, quality service, dislike waiting,
always want a prompt service/product
Competitive Analysis
Our main competitors are the crispy chicharon and pork chicharon, which are the familiar
chicharon to the customers but we would like to introduce our product, chicharoni, the
innovation of pork chicharon, which can help to lessen cholesterol while eating our
satisfying product with different flavor.
Direct competitor/s: Local Chicharon that were already in station of jeepney terminals.
This could be a potential threat to the product as it caters almost the same product that
we’re introducing to the market. However, the difference is that, our chicharon is without
preservatives, that is not harmful to people or chicharon lovers who are health conscious.
Indirect competitor/s: Other “pasalubong” products in the market where jeepney
terminals are located. This could also be a potential threat to the product as it offers the
same purpose and intent of the product. However, chicharon has always been a
marketable product in terms of "pasalubong”.
PROPOSED MARKETING STRATEGIES
Price
Pricing is a vital strategic issue because it is related to product positioning. It is the only
mix that generates a turnover for the organization. It should consider company objectives,
competition, target group’s demand and their willingness to pay.
The business will use the Cost-plus pricing strategy to calculate the price of our product.
The price will be set based on the production cost, including direct and indirect costs at
our projected sales volume and our standard markup. Our product is competitively priced
and is very affordable for consumers to buy. Considering our product's extreme health
benefits, we are sure their money will be worth consuming and making it a staple in their
healthy diet.
Promotion
Business promotion is an integral part of any business’ success, as it is through
promotion that a business expands its customer/client base and opens new windows of
opportunity.
On the first day of our Store, we will provide a discount voucher to the first 50 customers
who visit our store and purchase any flavor of our product.
We also using social media platforms like Facebook and Tiktok to promote our product
because social media can reach a large number of people in a short period of time,
allowing us to attract more customers, engage potential customers, and make our product
known in the market. Facebook ad boost will cost 1,000.00 per ad boost, the duration of
this advertisement boost in social media will take for at least 1 year. Per day, the
promotion will take for 2 posts per day, which amounting to 2,000.00 per day.
Place
Chicharoni will be located in front of TM 666 and beside of botica villa fuerte, we're also
near on the loading place of jeepney's going to Angeles, Capas, and Tarlac and to the
public market.
CHANNEL OF DISTRIBUTION
PRODUCT
CUSTOMER
Figure 3.1
Direct distribution channel will be used since the proposed project aims to render
services directly to its target market by means of its main office and mobile services
Bibliography
Borromeo. (2018). The Cebuano pasalubong.Cebuano Studies Center, Cebu, Philippines
Brown (2020). I juander: ano ang orihinal na chicharon sa bayan ni juan?[Motion Picture].
Campion (2019). Chicharrón peruano / peruvian braised and fried pork. Retrieved June 28,
2015, from La Vida Comida: URL: http://goo.gl/BIf7EX
Lee (2018). Hands off my pork scratching: they're a heart attack in a bag - but it's time the
food police laid off my favorite snack. Retrieved 29 June, 2015, from Daily Mail:
http://goo.gl/AI3n1v
Lorenciana (2012). Cordillera cuisine. Retrieved July 19, 2015 from Go Baguio!:
http://goo.gl/GB8sSk
Manalo (2019). Maghikay ta: chicharon sa carcar. (L. Malazarte, Interviewer)
ManilaTimes (2013). C is for chicharon. Sun Star Cebu. Cebu, Cebu, Philippines: Sun Star
Cebu.
Patricio (2015). Brewing it up with the food industry.Cebu: Metro Cebu Journal.
Weisbord, G., & Simmonds, D. (2015). Defining economic impact and benefit metrics
from multiple perspectives: lessons to be learned from both sides of the atlantic. Retrieved
June 30, 2015, from Economic Development Research Group: http://goo.gl/mioocd
CHAPTER 4
TECHNICAL ASPECT
This chapter delves into the technical dimension of our proposed project. It
encompasses the description of our service and the prescribed operating
procedures. Furthermore, it outlines the materials and equipment integral to the
production of our product, Chicharoni. Additionally, it encompasses aspects such
as the project site, building layout, utilities, waste disposal strategies, safety and
hygiene protocols, and various technical considerations aimed at achieving cost
reduction and profit optimization.
Service Description
Chicharoni is a delightful alternative to traditional pork chicharon, a beloved
snack among Filipinos. This delectable treat offers a healthier option, allowing
people to savor the flavors of their all-time favorite chicharon while reducing their
intake of cholesterol and fats compared to the conventional pork variety.
Chicharoni provides a guilt-free indulgence that retains the deliciousness of the
classic Filipino snack while promoting better health.
In addition, Chicharoni boasts a diverse array of flavors that are sure to
satisfy every craving. Our products are readily available through an extensive
network of retail outlets, with a particular focus on locations catering to travelers,
including jeepney lines, bus stops, convenience stores, and more. We strive to
make our delicious Chicharoni snacks easily accessible to customers on the go,
ensuring that they can enjoy their favorite flavors wherever their journey takes
them.
Flavored Chicharoni is made from cooked dried Macaroni which provides
more health benefits. It has variety of flavors such as barbecue, sour cream, chilli
garlic, cheese to add more taste on it. This product is very much affordable on its
size and well packed. Every single bite has a very awesome taste.
GENERAL SERVICE PROCESS
The general service process in a production business like our product,
Chicharoni typically involves several key steps. These steps are essential for
ensuring the quality and consistency of the product while also meeting customer
demand. Here's a simplified overview of the process:
Raw Material Sourcing:
At Chicharoni, we prioritize the quality and freshness of our primary raw
material, macaroni, as it plays a crucial role in crafting the perfect batch of
chicharon. To ensure this, we rely on TGA Food Service Supply, a trusted food
service supplier located in KM3 Complex, MacArthur Hwy, San Sebastian, Tarlac
City, 2300 Tarlac. It is through TGA Food Service Supply that we source our
premium macaroni, along with the top-grade vegetable oil used for frying our
product. This partnership ensures that we consistently deliver the exceptional taste
and quality that our customers have come to expect from Chicharoni.
SUMMARY OF THE SERVICE PROCESS
The production process of Macaroni Chicharon is a meticulously
crafted journey, aimed at creating a delectable and crispy snack that delights
our customers. This process begins with the careful selection of raw materials,
including high-quality macaroni, vegetable oil, and an assortment of seasonings,
all sourced from trusted suppliers known for their commitment to quality.
Our journey commences with the preparation of the macaroni,
ensuring that each piece meets our stringent quality standards. Following this,
the macaroni is expertly cut into bite-sized pieces, ready to undergo the
transformation into the savory treat we all love.
The heart of our production process lies in the seasoning and
marination stage. Here, we apply our secret blend of spices and flavorings,
allowing the macaroni to absorb these delicious notes, enhancing their taste and
aroma.
The next stage involves the art of frying. We heat premium vegetable
oil to the perfect temperature, creating the ideal environment for the macaroni
to achieve their desired crispy texture. Our experienced team carefully
immerses the marinated macaroni into the hot oil, monitoring the frying process
to ensure each piece is golden and crunchy.
Once they've achieved perfection, the fried Macaroni Chicharon is
carefully lifted from the oil and placed on absorbent paper, allowing any excess
oil to be drained. As the chicharon cools to room temperature, it retains its
signature crispiness.
Quality control is a cornerstone of our production process. At various
stages, we conduct rigorous checks to ensure each piece meets our exacting
standards for taste, texture, and appearance. Only those that pass our stringent
criteria proceed to the next step.
After quality assurance, we move to the packaging phase. The
Macaroni Chicharon is lovingly placed in attractive, convenient containers
designed to maintain their freshness and protect them from moisture. Our
product labels carry essential information, including ingredients, nutritional
details, and expiration dates, all complemented by our distinctive branding.
To safeguard product integrity, we store the packaged Macaroni
Chicharon in a controlled environment, ensuring that they remain at their best
until they reach the hands of our customers.
Efficient distribution is a crucial element of our process. We work
diligently to get our beloved snack into the hands of retailers and wholesalers,
ensuring that our customers can enjoy it whenever and wherever they desire.
Our commitment to customer service is unwavering. We maintain
open communication channels to promptly address inquiries, feedback, and
concerns. Your satisfaction is our top priority.
Throughout every step of our production journey, we strictly adhere
to food safety and hygiene regulations. This dedication ensures the safety and
legality of our product, giving you peace of mind with every bite.
Our Macaroni Chicharon production process is built upon a
foundation of quality, consistency, and customer satisfaction. We aspire to
establish our snack as a beloved favorite in the market, offering you a delightful
and crispy indulgence every time you reach for a bag.
Mobile
In the event that retailers opt for product delivery to their stores
instead of making personal purchases, our chosen vehicle for this purpose is
the Suzuki Super Carry Cargo Van. With dimensions measuring 3,800 mm in
length, 1,562 mm in width, and standing at a height of 1,883 mm, this two-door
vehicle boasts a comfortable ground clearance of 175 mm, ensuring the safety
and security of your valuable deliveries, even in the face of potential flooding.
Plant Location
Chicharoni will be located in front of TM 666 and beside of botica villa
fuerte, we’re also near on the loading place of jeepney’s going to Angeles,
Capas, and Tarlac and to the public market. It is very accessible and convenient
for us and our consumers to sell and consume our product. We chose this
location because there are people in the public market who are going to take a
jeep to their designated places where they can stop for a snack if they get
hungry.
VICINITY MAP
Actual Site
Figure 4.8 Plant location
Figure 4.9 Actual Plant Site
Shop Front Design
Employees Uniform
UTILITIES
Source of Electricity and Water Supply
Tarlac 2 Electric Cooperative (TARELCO 2) serves as the primary
electricity provider for Concepcion, Tarlac, the designated location for the
proposed project. TARELCO 2 will be responsible for supplying the required
electricity to power 'Chicharoni.' Concurrently, Concepcion Water Districts will
be responsible for providing the essential water supply needed for our
operations.
Communication
In order to establish effective communication channels with our
valued suppliers and retailers, it is imperative for our business to have access
to both telephone services and internet connectivity. We plan to secure the
necessary communication line through the renowned Philippine Long Distance
Telecommunication Company (PLDT).
UTILITIES EXPENSES
Description
Source
Monthly Cost
Yearly Cost
Electricity
Tarelco II
5,000
60,000
Water
Concepcion
Water District
500
6,000
TOTAL
66,000
Table 4.1
*The amount of expenses during the first year of operation is based on actual
interview.
PRODUCTION COST
ITEM
QUANTITY
COST
STRAIGHT MACARONI
800 grams
50
UFC VEGETABLE OIL
1 Liter
67
SALT
6 tsp.
5
FLAVORS
10 grams each flavors
24
PACKAGING
20 pcs.
40
TOTAL
186
Total Revenue
Total Expenses
Gross profit
-
600
/
20
186
/
20
414
=
=
=
30
9.3
20.7
Our total revenue is 600, and our total expenses are 186, so our gross profit
is 414. We produced 20 packs per production, so we divided it by 20 to determine
the initial cost and income per pack. The total revenue per pack is 30 (our price)
and 9.3 (total expense). We earned 20.7 gross profit per pack.
SUPPLIES AND TOOLS
Supplies
Apron and Hairnet – use for sanitary purposes.
Packaging and Paper bag- Use in packaging the orders
PLASTIC
Potholder gloves- to shield hands from part of the intense heat.
Disposable gloves - One possible strategy of avoiding bare hand contact with
ready-to-eat foods is the use of disposable gloves and to avoid contamination.
Thermal Sticker- To identify the brand of our product, we use a thermal sticker
to apply a label to our packaging.
COST OF SUPPLIES IN THE PRODUCTION
One month supply
PARTICULAR
APRON, CAP
QUANTITY
UNIT COST
TOTAL COST
10
280
2,800
60
3.17 or 12pcs
190
AND FACEMASK
HAIRNET
cost 38pesos
PACKAGING
5,400
2.50 or 100pcs
13,500
cost 250pesos
PLASTIC
5,400
.5
3,000
POTHOLDER
2 pairs
78 each pair
156
100
100pcs cost 7
7
GLOVES
DISPOSABLE
GLOVES
THERMAL
pesos
500
500pcs cost 118
118
STICKER
Tools
Deep Fryer- To cook straight macaroni pasta in deep oils that have been
heated to high temperatures.
Strainer- To remove excess oil from deep-frying.
Casserole- Use to boil the straight macaroni pasta.
Hot sealer plastic- A heat sealer is a machine that is used to seal
the packaging of our product.
Measuring Spoon & Mesuring Cup – We use this tools to measure the
ingredient such as salt, water and vegetable oil.
COST OF TOOLS IN THE PRODUCTION
PARTICULAR
QUANTITY
UNIT COST
TOTAL COST
DEEP FRYER
1
2,090
2,090
STRAINER
4
205
820
CASSEROLE
1
240
240
HOT SEAL
2
295
590
1
138
138
1
55
55
PLASTIC
MEASURING
SPOON
MEASURING
CUP
Equipment
Food Dryer Machine- Used to dry the cooked straight macaroni pasta.
Drying Capacity: 10-15kg.
Specification: 12 layers
Production power: 1000W
Body Size: 40 * 47 * 43cm
Voltage: 220V/60HZ
Grid Size: 38.5 * 28.5cm
Temperature range: 35-90 Degree Celsius
Mesh materials: 304 stainless
steel
Gas Stove with LPG gas tank- Use when boil the straight macaroni pasta.
Electric Fan- Fans are used to circulate air in rooms and buildings, as well as to
cool motors and to cool and dry people, materials, or products.
Cashier Register- Use to record all the transaction.
Thermal Printer - We use thermal printing for the stickers and labeling the
packaging of our product.
Weighing Scale Grams - A weighing scale grams is an instrument that is
used to determine the weight or grams of our product.
Ladle - We use this ladle to stir the boiled straight macaroni pasta from the
casserole to strainer.
COST OF EQUIPMENT IN THE PRODUCTION
PARTICULAR
QUANTITY
UNIT COST
TOTAL
COST
FOOD DRYER
1
10,035
10,035
1
1800
1800
1
26,097
26,097
MACHINE
GAS STOVE
WITH LPG GAS
TANK
CASHIER
REGISTER
STAND FAN
1
699
699
WALL FAN
2
675
1,350
THERMAL
1
3,088
3,088
2
100
200
3
25
75
PRINTER
WEIGHING
SCALE GRAM
LADLE
Furniture and Fixture
Stainless Kitchen Table
COST OF FURNITURE AND FIXTURE
PARTICULAR
QUANTITY
UNIT COST
TOTAL
COST
Bar table and chair
1 set – 1 table and
6,500
6,500
2,429
2,429
4 chair
Stainless Kitchen
1
Table
Cleaning Materials
Garbage Bin
Garbage Bag
Broom and Dust pan
Floor Mop
Dishwashing Liquid
Sponge
Hand Soap
COST OF CLEANING MATERIALS
PARTICULAR
QUANTITY
UNIT COST
TOTAL COST
GARBAGE BIN
2
149
298
GARBAGE BAG
100
4.45
445
BROOM AND
2
105
210
FLOOR MOP
1
217
217
DISHWASHING
10 Bottles 1L
40
400
5
21
105
DUST PAN
LIQUID
SPONGE
HAND SOAP
4 Gallon
139
556
Waste Disposal Management
Republic Act No. 9003, commonly referred to as the Ecological Solid
Waste Management Program Act of 2000, stands as a comprehensive legislation
that outlines the framework for ecological solid waste management in our nation.
It establishes the necessary institutional mechanisms, provides incentives,
delineates prohibited acts with corresponding penalties, allocates funds, and
addresses various other vital aspects related to responsible waste management.
A primary focus for our initiative's proponents lies in the development of
an efficient waste disposal system. Our dedicated team members, assigned to
this crucial task, are mandated to promptly remove all superfluous materials or
waste from our premises and ensure their proper disposal. In support of this, our
management has thoughtfully provided garbage containers throughout the
establishment. The paramount objective is to maintain the highest standards of
cleanliness within our facility, prioritizing the well-being of both our valued
employees and cherished customers. We recognize that the appearance of
cleanliness not only plays a pivotal role in customer satisfaction but also
significantly contributes to the reputation and integrity of our business.
Our commitment to responsible waste management extends to our
partnership with the municipality of Concepcion, Tarlac. In alignment with their
established system of garbage collection, we pledge to adhere to stringent
guidelines, including proper waste segregation. We are dedicated to contributing
positively to our local community and the environment by responsibly disposing
of our waste. Recyclable materials generated during our operations will be
conscientiously sold to a nearby junkshop, promoting sustainability and
supporting local recycling efforts.
At "Chicharoni," we take environmental concerns seriously, and we
wholeheartedly support eco-friendly means of waste elimination. We understand
the importance of preserving the environment for current and future generations.
Our commitment to sustainable practices is not only a legal obligation but also a
moral responsibility that we embrace wholeheartedly.
Safety and Sanitary Procedures
The well-being of our people stands as an utmost priority, and as such,
the core focus of our public services is dedicated to safeguarding and enhancing
their health.
It is incumbent upon every individual within our company to assume
responsibility for maintaining a safe and hygienic work environment. Each
employee must exercise due care when handling equipment, tools, and supplies,
taking deliberate measures to prevent harm, both to themselves and to their
fellow colleagues. Ensuring that our establishment is equipped with a readily
accessible first aid kit and instructional manual is pivotal, as it equips us all with
the knowledge and resources necessary to respond effectively in case of any
unforeseen emergencies.
CHAPTER 5
FINANCIAL ASPECT
Introduction
Financial aspects plays a very vital role in progress of any good business. It also
helps management gain a clear understanding of the company's current financial
position, particularly whether the business is profitable or not. Companies of all
sizes benefit from thorough financial planning to guide the business steadily down
the path to future growth.
FINANCIAL ASSUMPTIONS

Cost of supplies is estimated to increase by 1.6% each year due to inflation
rate.

Salaries will increase by 5% annually.

Sanitary supplies are to be updated every three (3) months to maintain
cleanliness and sanitation of the service tools and materials and
equipment. 90% of such supplies are estimated to be expensed.
Straight line method will be used for computing depreciation expense
DESCRIPTION
AMOUNT
Pre operating expenses
100,000
Kitchen Equipment
16,435
Kitchen Tools
933
Kitchen Supplies
154,130
Furniture and Fixture
12,929
Office Supplies
1,579
Cleaning Supplies
2,098
Cleaning Tools
725
Other Equipment
32,431
Other Supplies
2,309
Rent expense
120,000
Utilities Expense
66,000
Employees Salary
684,720
Production cost / Purchases (Food
cost)
301,778
Taxes and Licenses
10,000
Advertising expenses
5,000
Repair and Maintenance
10,000
TOTAL
1,521,067
KITCHEN EQUIPMENT
DESCRIPTION SOURCE
QUANTITY
UNIT COST
TOTAL
COST
Gas stove
RCS
1
800
800
LPG gas tank
Solane
PUBLIC
MARKET
1
2,450
2,450
Caserole
RCS
1
240
240
Deep Fryer
SHOPEE
1
2,090
2,090
Strainer
RCS
4
205
820
Food Dryer
Machine
SHOPEE
1
10,035
10,035
TOTAL
16,435
KITCHEN TOOLS
DESCRIPTION SOURCE
QUANTITY
UNIT COST
TOTAL
COST
Ladle
RCS
2
25
50
Measuring
Spoon
Shopee
1
138
138
Measuring Cup
Shopee
1
55
55
Weighing
Scale Grams
Shopee
1
100
100
Hot Sealed
Plastic
Shopee
2
295
590
TOTAL
933
KITCHEN SUPPLIES
DESCRIPTION SOURCE
QUANTITY
UNIT COST
YEARLY
COST
Apron, Cap
and Facemask
Shopee
7
280
1,960
Hairnet
Shopee
60
3.17 or
12pcs cost
38 pesos
2,280
Packaging
Shopee
65,700
2 or 100 pcs
cost 200
pesos
131,400
Paper Bag
Shopee
36,500
.5
18,250
Disposable
Gloves
Shopee
1,200
100pcs cost
of 7 pesos
84
Potholder
Gloves
Shopee
2pairs
78 each pair
156
TOTAL
154,130
FURNITURE AND FIXTURE
DESCRIPTION SOURCE
QUANTITY
UNIT COST
TOTAL
COST
Bar table and
chair
Shopee
1 set – 1 table
and 4 chair
6,500
6,500
Stainless
Kitchen Table
Shopee
1
2,429
2,429
Display Rack
Shelves
Shopee
5
800
TOTAL
4,000
12,929
OFFICE SUPPLIES
DESCRIPTION SOURCE
QUANTITY
UNIT COST
YEARLY
COST
Ballpen
RCS
1 box
50
50
Paper Clip
RCS
1 box
23
23
Record Book
RCS
3pcs
85
255
Envelope
Brown
RCS
30pcs
30pcs cost
75pesos
75
Sliding Folder
RCS
12pcs
55
55
Fastener
RCS
1 box
29
29
Correction
Tape
RCS
3 set
35
105
Puncher
RCS
1
135
135
Scissor
RCS
2
38
76
Thermal Paper
Shopee
20 rolls
58
116
Calculator
Shopee
2
95
190
Bond Paper
Shopee
2 ream
205
410
Folder
RCS
12pcs
5
60
TOTAL
1,579
CLEANING SUPPLIES
DESCRIPTION
SOURCE
QUANTITY
UNIT COST
YEARLY
COST
GARBAGE
BAG
RCS
200
4.45
890
DISHWASHING RCS
LIQUID
10 Bottles 1L
40
400
SPONGE
RCS
12
21
252
HAND SOAP
RCS
4 Gallon
139
556
TOTAL
2,098
CLEANING TOOLS
DESCRIPTION SOURCE
QUANTITY
UNIT COST
YEARLY
COST
Garbage Bin
RCS
2
149
298
Broom and
Dust Pan
RCS
2
105
210
Floor Mop
RCS
1
217
217
TOTAL
725
OTHER EQUIPMENT
DESCRIPTION SOURCE
QUANTITY
UNIT COST
TOTAL
COST
Stand Fan
RCS
1
699
699
Cash Register
Shopee
1
26,097
26,097
Wall fan
RCS
2
675
1,350
Canon Printer
Shopee
1
3,495
3,495
Fire
Distinguisher
Shopee
1
790
790
TOTAL
32,431
OTHER SUPPLIES
DESCRIPTION SOURCE
QUANTITY
UNIT COST
YEARLY
COST
Canon Printer
Ink
Shopee
2pcs per color
699
1,398
Bond Paper
Shopee
3 ream
205
615
Double sided
tape
Shopee
24pcs
12pcs cost
148pesos
296
TOTAL
2,309
RENT EXPENSE
MONTHLY
YEARLY COST
10,000
120,000
EMPLOYEES SALARY
EMPLOYEES
PRODUCTION
MANAGER
DAILY
SALARY
WEEKLY
MONTHLY
YEARLY
SALARY
SALARY
SALARY
480
2,880
12,480
152,160
CASHIER 1
420
2,520
10,920
133,140
CASHIER 2
420
2,520
10,920
133,140
WORKER 1
420
2,520
10,920
133,140
WORKER 2
420
2,520
10,920
133,140
TOTAL
684,720
UTILITIES EXPENSES
Description
Source
Monthly Cost
Yearly Cost
Electricity
Tarelco II
5,000
60,000
Water
Concepcion Water
District
500
6,000
TOTAL
66,000
PRODUCTION COST
DESCRIPTION SOURCE
QUANTITY
UNIT COST
YEARLY
COST
Straight
Macaroni
Pasta
RCS
3,285pcs of
800 grams
800 grams
cost 50
164,250
Vegetable Oil
RCS
1,095pcs of
1Liter
1Liter cost
67pesos
73,365
Salt
RCS
12kilos
24per kilo
288
Flavoring
Powder
Super Market
1,825 pcs of
200 grams
each flavor
35
63,875
TOTAL
301,778
Comprehensive Income
₱
₱
₱
2022
1,622,880.00 ₱
301,778.00 ₱
1,321,102.00 ₱
Rent Expense
Salaries Expense
Utilities Expense
Pre-operating Expenses
Kitchen Supplies
Office Supplies
Cleaning Supplies
Repair and Maintenance
Taxes and Licenses
Advertising Expense
Depreciation Expense
₱
₱
₱
₱
₱
₱
₱
₱
₱
₱
₱
120,000.00
684,720.00
66,000.00
100,000.00
77,065.00
1,154.50
1,049.00
10,000.00
10,000.00
5,000.00
6,345.30
Net Income before Tax:
Income Tax Expenses
Net Income:
₱
₱
₱
Sales
Less: Cost of Sales
Gross Profit
CHICHARONI (Macaroni Chicharon)
Comprehensive Income (Annual 12% increase)
2023
2024
1,817,625.60 ₱
2,035,740.67 ₱
337,991.36 ₱
378,550.32 ₱
1,479,634.24 ₱
1,657,190.35 ₱
2025
2,280,029.55 ₱
423,976.36 ₱
1,856,053.19 ₱
2026
2,553,633.10
474,853.53
2,078,779.57
Less: Operating Expenses
₱
₱
₱
126,000.00 ₱
684,720.00 ₱
66,000.00 ₱
126,000.00 ₱
821,664.00 ₱
66,000.00 ₱
130,000.00 ₱
821,664.00 ₱
66,000.00 ₱
135,000.00
821,664.00
66,000.00
₱
₱
₱
₱
₱
77,065.00
1,154.50
1,049.00
10,000.00
10,000.00
77,066.00
1,155.50
1,050.00
10,000.00
10,000.00
77,066.00
1,155.50
1,050.00
10,000.00
10,000.00
₱
₱
₱
₱
₱
77,067.00
1,156.50
1,051.00
10,000.00
10,000.00
₱
6,345.30 ₱
6,345.30 ₱
6,345.30 ₱
6,345.30
239,768.20 ₱
28,772.18 ₱
210,996.02 ₱
497,300.44 ₱
59,676.05 ₱
437,624.39 ₱
537,909.55 ₱
64,549.15 ₱
473,360.40 ₱
732,772.39 ₱
87,932.69 ₱
644,839.70 ₱
950,495.77
114,059.49
836,436.28
₱
₱
₱
₱
₱
Depreciation
₱
₱
₱
₱
₱
Title
Kitchen Equipment
Kitchen Tools
Furniture and Fixture
Cleaning Tools
Other Equipment
Value
₱
₱
₱
₱
₱
DEPRECIATION
Depreciation (10 years) Year 1
16,435.00 ₱
1,643.50 ₱
933.00 ₱
93.30 ₱
12,929.00 ₱
1,292.90 ₱
725.00 ₱
72.50 ₱
32,431.00 ₱
3,243.10 ₱
Accumulated Depreciation ₱ 63,453.00 ₱
Year 2 Year 3 Year 4 Year 5
14,791.50 ₱13,148.00 ₱11,504.50 ₱ 9,861.00 ₱ 8,217.50
839.70 ₱ 746.40 ₱ 653.10 ₱ 559.80 ₱ 466.50
11,636.10 ₱10,343.20 ₱ 9,050.30 ₱ 7,757.40 ₱ 6,464.50
652.50 ₱ 580.00 ₱ 507.50 ₱ 435.00 ₱ 362.50
29,187.90 ₱25,944.80 ₱22,701.70 ₱19,458.60 ₱ 16,215.50
6,345.30 ₱ 57,107.70 ₱50,762.40 ₱44,417.10 ₱38,071.80 ₱31,726.50
Changes in Equity
Capital, beginning of year
Add: Investment
Add: Net Income
Less: Withdrawal
Capital, end of year
CHICHARONI
STATEMENT OF CHANGES IN EQUITY
For the years ended December 31, 2022 and 2023
2022
2023
2024
2025
2026
₱ 1,760,996.02 ₱ 2,198,620.41 ₱ 2,671,980.81 ₱ 3,316,820.51
₱ 1,550,000.00
₱ 210,996.02 ₱ 437,624.39 ₱ 473,360.40 ₱ 644,839.70 ₱ 836,436.28
₱ 1,760,996.02 ₱ 2,198,620.41 ₱ 2,671,980.81 ₱ 3,316,820.51 ₱ 4,153,256.79
Statement of Cash Flow
CHICHARONI
CASH FLOW ANALYSIS
Cash Flow from Operation
Net Income
Adjusted for Non-Cash Expense
Depreciation Expense
Increase in Account Receivable
Increase in Merchandise Inventory
Increase n Salary Payable
Increase in Tax Payable
Increase in Supplies
Net Flow from Operation
₱ 210,996.02 ₱ 437,624.39 ₱ 473,360.40 ₱ 644,839.70 ₱
836,436.28
6,346.30 ₱
6,347.30
-₱ 270,000.00 -₱ 200,000.00 -₱ 150,000.00 -₱ 150,000.00 -₱
150,000.00
₱
6,345.30 ₱
6,345.30 ₱
6,346.30 ₱
₱
28,772.18 ₱
64,549.15 ₱ 87,932.69 ₱
114,059.49
-₱
23,886.50 ₱ 303,645.74 ₱ 394,255.85 ₱ 589,118.69 ₱
806,843.07
Cash Flow from Investing Activities
Increase in Furnitures and Fixtures
-₱
Increase in Equipment
Net Cash Flow from Investing Activities -₱
59,676.05 ₱
63,453.00
63,453.00
Cash Flow from Financial Activities
Increase in Notes Payable
Net Cash Flow from Financial Activities
Net Cash Inflow
Add: Cash, beginning
Cash Balance to Date
-₱ 87,339.50 ₱ 303,645.74 ₱ 394,255.85 ₱ 589,118.69 ₱ 806,843.07
₱ 1,760,996.02 ₱ 2,198,620.41 ₱ 2,671,980.81 ₱ 3,316,820.51 ₱ 4,153,256.79
₱ 1,673,656.52 ₱ 2,502,266.15 ₱ 3,066,236.66 ₱3,905,939.20 ₱ 4,960,099.86
Financial Position
COMPARATIVE FINANCIAL POSITION
Current Assets
Initial Balance Sheet Year 2022
Year 2023
Year 2024
Cash and Cash Equivalents ₱ 1,550,000.00 ₱ 1,673,656.52 ₱ 2,502,266.15 ₱ 3,066,236.66
Inventory
₱ 270,000.00 ₱ 270,000.00 ₱
270,000.00
Supplies
₱ 160,116.00 ₱ 160,116.00 ₱
160,116.00
Total Current Assets
₱ 1,550,000.00 ₱ 2,103,772.52 ₱ 2,932,382.15 ₱ 3,496,352.66
Year 2025
₱ 3,905,939.20
₱ 270,000.00
₱ 160,116.00
₱ 4,336,055.20
Year 2026
₱ 4,960,099.86
₱ 270,000.00
₱ 160,116.00
₱ 5,390,215.86
Non-current Assets
Equipment and Tools
Less: Depreciation
Total Non-current Assets
Total Assets
₱ 43,762.49
₱ 6,345.30
₱ 37,417.19
₱ 4,373,472.39
₱ 37,417.19
₱ 6,345.30
₱ 31,071.89
₱ 5,421,287.75
₱
Current Liabilities
Trade Accounts Payable
Income Tax Payable
Total Current Liabilities
Non-current Liabilities
Total Non-current Liabilities
Total Liabilities
Equity
Chicharoni Equity
Total Liabilities and Equity
₱
₱
₱ 63,453.00
₱ 6,345.30
₱ 57,107.70
1,550,000.00 ₱ 2,160,880.22
₱
57,107.70
₱
6,345.30 ₱
₱
50,762.40 ₱
₱ 2,983,144.55 ₱
50107.7
6,345.30
43,762.40
3,540,115.06
₱ 377,695.72 ₱
₱ 28,772.18 ₱
₱ 406,467.90 ₱
757,551.96 ₱
28,772.18 ₱
786,324.14 ₱
839,362.07 ₱ 1,027,879.70 ₱ 1,239,258.78
28,772.18 ₱ 28,772.18 ₱ 28,772.18
868,134.25 ₱ 1,056,651.88 ₱ 1,268,030.96
₱ 406,467.90 ₱
786,324.14 ₱
868,134.25 ₱ 1,056,651.88 ₱ 1,268,030.96
1,550,000.00 ₱ 1,760,996.02 ₱ 2,196,820.41 ₱
1,550,000.00 ₱2,167,463.92 ₱ 2,983,144.55 ₱
2,671,980.81 ₱ 3,316,820.51 ₱ 4,153,256.79
3,540,115.06 ₱4,373,472.39 ₱5,421,287.75
Worksheet (3 years)
Net Income
TOTAL
1. Tax Expenses
2. Tax Payable
3. Depreciation Expense
Accumulated Depreciation
4. Supplies Expense
5. Merchandise Inventory, End
₱ 1,550,000.00
₱ 1,622,880.00
₱ 1,550,000.00 ₱ 1,550,000.00 ₱ 2,799,016.52 ₱ 2,799,016.62 ₱ 3,172,879.90 ₱ 3,172,880.00
₱ 1,622,880.00
₱ 2,047,519.90
₱ 160,116.00
₱ 120,000.00
₱ 684,720.00
₱ 110,000.00
₱ 50,524.00
Trial Balance
Debit
Credit
TOTAL
₱ 1,550,000.00
₱ 1,673,656.52 ₱ 1,176,136.62
₱ 160,116.00
₱ 120,000.00
₱ 684,720.00
₱ 110,000.00
₱ 50,524.00
Transaction
Debit
Credit
₱ 1,550,000.00
Initial Balance Sheet
Debit
Credit
Cash and Cash Equivalent
Supplies
Rent Expenses
Salary Expenses
Pre-operating Expenses
Equipment and Tools
Capital
Sales
Purchases
Title
₱ 6,345.30
₱ 28,772.18
₱ 6,345.30
₱ 28,772.18
₱ 2,047,520.00
₱ 160,116.00
₱ 120,000.00
₱ 684,720.00
₱ 110,000.00
₱ 50,524.00
₱ 6,345.30
₱ 28,772.18
₱ 1,550,000.00
₱ 1,622,880.00
Adjustment Trial Balance
Debit
Credit
₱ 35,117.48 ₱ 35,117.48 ₱ 3,207,997.48 ₱ 3,207,997.48
₱ 6,345.30
₱ 28,772.18
Adjustment
Debit Credit
WORKSHEET
31-Dec-22
₱ 270,000.00 ₱ 270,000.00
₱ 1,622,880.00
₱ 50,524.00
₱ 2,047,520.00
₱ 160,116.00
₱ 6,345.30
₱ 28,772.18
₱ 732,046.50
₱ 1,760,996.02
Financial Position
Debit
Credit
₱ 210,996.02
₱ 210,996.02 ₱ 210,996.02
₱ 1,892,880.00 ₱ 1,892,880.00 ₱ 2,739,156.02 ₱ 2,739,156.02
₱ 6,345.30
₱ 28,772.18
₱ 732,046.50
₱ 120,000.00
₱ 684,720.00
₱ 110,000.00
Comprehensive Income
Debit
Credit
Net Income
TOTAL
1. Tax Expenses
2. Tax Payable
3. Depreciation Expense
Accumulated Depreciation
4. Supplies Expense
5. Merchandise Inventory, End
Cash and Cash Equivalent
Supplies
Rent Expenses
Salary Expenses
Pre-operating Expenses
Equipment and Tools
Capital
Sales
Purchases
Title
₱ 6,345.30
₱ 28,772.18 ₱ 28,772.18
₱ 732,046.50
₱ 1,760,996.02
₱ 1,817,625.60
₱ 2,502,266.15 ₱ 1,684,248.73
₱ 160,116.00
₱ 126,000.00
₱ 684,720.00
Transaction
Debit
Credit
₱ 61,340.77
₱ 50,524.00
₱ 2,502,266.15
₱ 160,116.00
₱ 126,000.00
₱ 684,720.00
₱ 6,345.30
₱ 1,760,996.02
₱ 1,817,625.60
₱ 6,345.30
₱ 59,676.05
₱ 6,345.30
₱ 59,676.05
₱ 6,345.30
₱ 59,676.05
₱ 54,995.47
₱ 50,524.00
₱ 2,502,266.15
₱ 160,116.00
₱ 126,000.00
₱ 684,720.00
₱ 6,345.30
₱ 59,676.05
₱ 1,760,996.02
₱ 1,817,625.60
Adjustment Trial Balance
Debit
Credit
₱ 59,676.05
₱ 239,605.16
₱ 126,000.00
₱ 684,720.00
₱ 1,817,625.60
Comprehensive Income
Debit
Credit
₱ 50,524.00
₱ 2,502,266.15
₱ 160,116.00
₱ 6,345.30
₱ 59,676.05
₱ 2,198,620.41
Financial Position
Debit
Credit
₱ 270,000.00
₱ 270,000.00
₱ 448,264.39
₱ 2,528,160.00 ₱ 2,528,160.00 ############ ₱ 3,501,874.33 ₱ 3,584,966.92 ₱ 3,584,966.92 ₱ 66,021.35 ₱ 66,021.35 ₱ 3,644,642.97 ₱ 3,644,642.97
₱ 437,624.39
₱ 437,624.39 ₱ 437,624.39
₱ 1,817,625.60 ₱ 1,817,625.60 ₱ 3,150,530.54 ₱ 3,150,530.54
₱ 50,524.00
₱ 2,047,520.00
₱ 160,116.00
Trial Balance
Debit
Credit
WORKSHEET
31-Dec-23
Trial Balance
Adjustment
Debit
Credit
Debit Credit
Net Income
TOTAL
1. Tax Expenses
2. Tax Payable
3. Depreciation Expense
Accumulated Depreciation
4. Supplies Expense
5. Merchandise Inventory, End
Cash and Cash Equivalent
Supplies
Rent Expenses
Salary Expenses
Pre-operating Expenses
Equipment and Tools
Capital
Sales
Purchases
Title
₱ 182,468.43
₱ 6,345.30
₱ 6,345.30
₱ 64,549.15
₱ 6,345.30
₱ 64,549.15
₱ 6,345.30
₱ 64,549.15
₱ 147,272.30
₱ 64,549.15
₱ 2,198,620.41
₱ 2,035,740.67
₱ 64,549.15
₱ 722,847.28
₱ 126,000.00
₱ 684,720.00
₱ 2,035,740.67
Comprehensive Income
Debit
Credit
₱ 50,524.00
₱ 3,066,266.16
₱ 160,116.00
₱ 64,549.15
₱ 2,671,980.81
Financial Position
Debit
Credit
₱ 437,624.39
₱ 437,624.39 ₱ 437,624.39
₱ 2,035,740.82 ₱ 2,035,740.67 ₱ 3,714,530.55 ₱ 3,714,530.55
₱ 534,030.90
₱ 153,080.28
₱ 50,524.00
₱ 3,066,266.16
₱ 160,116.00
₱ 126,000.00
₱ 684,720.00
Adjustment Trial Balance
Debit
Credit
₱ 479,168.26
₱ 182,468.43
₱ 537.44
₱2,712,906.15 ₱2,712,906.15 ₱4,088,226.76 ₱ 4,088,226.76 ₱ 4,240,706.44 ₱4,240,706.38 ₱70,894.45 ₱70,894.45 ₱4,305,792.91 ₱4,305,792.97
₱ 2,035,740.67
₱ 2,198,620.41
₱ 2,035,740.67
Adjustment
Debit Credit
₱ 6,345.30
₱ 6,345.30
₱ 28,772.18 ₱ 28,772.18
₱ 2,198,620.41
3,066,266.16
160,116.00
126,000.00
684,720.00
Trial Balance
Debit
Credit
₱ 50,524.00
₱ 3,066,266.15 ₱ 1,870,017.66 ₱
₱
₱ 126,000.00
₱
₱ 684,720.00
₱
Transaction
Debit
Credit
₱ 6,345.30
₱ 50,524.00
₱ 2,502,266.15
₱ 160,116.00
Trial Balance
Debit
Credit
WORKSHEET
31-Dec-24
Year 1
Year 2
Year 3
Year 4
Year 5
1. Cash
Petty Cash
Cash in Bank
Beginning Balance
Net Cash provided (used)
Cash in Bank
₱ 50,000.00
₱ 1,550,000.00
₱ 210,996.02
-
₱ 50,000.00
₱ 1,760,996.02
₱ 437,624.39
-
₱ 50,000.00
₱ 2,198,620.41
₱ 473,360.40
-
₱ 50,000.00
₱ 2,671,980.81
₱ 644,839.70
-
₱ 50,000.00
₱ 3,316,820.51
₱ 836,436.28
-
Cash
₱ 1,760,996.02
₱ 2,198,620.41
₱ 2,671,980.81
₱ 3,316,820.51
₱ 4,153,256.79
2. Production Equipment
Beginning Balance
Addition this year
Total Cost
Useful Life
Depreciation Expense
Beg. Bal. - Accum. Depn.
Accumulation Depreciation
₱
₱
₱
₱
₱
63,453.00
63,453.00
10.00
6,345.30
19,035.90
25,381.20
₱
₱
₱
₱
₱
₱
63,453.00
63,453.00
10.00
6,345.30
12,690.60
19,035.90
₱
₱
₱
₱
₱
₱
63,453.00
63,453.00
10.00
6,345.30
6,345.30
12,690.60
₱
₱
₱
₱
₱
₱
63,453.00
6,345.30
₱
₱
₱
₱
₱
₱
63,453.00
6,345.30
57,107.70
₱
₱
₱
63,453.00
12,690.60
50,762.40
₱
₱
₱
63,453.00
19,035.90
44,417.10
₱
₱
₱
63,453.00
25,381.20
38,071.80
₱
₱
₱
63,453.00
31,726.50
31,726.50
Total Cost
₱
Less: Accumulated Depreciation ₱
Production Equipment, net
₱
3. Rent Payable
Rent Expense (Monthly)
Unpaid Months
Rent Payable
4. Utilities Payable
Utilities Expense (Monthly)
Unpaid Months
Utilities Payable
5. Income Taxes Payable
Net before Tax
Unpaid Quarter
Income Tax Payable
63,453.00
63,453.00
10.00
6,345.30
63,453.00
10.00
6,345.30
25,381.20
31,726.50
₱ 120,000.00 ₱ 126,000.00 ₱ 126,000.00 ₱ 130,000.00 ₱ 135,000.00
1.00
1.00
1.00
1.00
1.00
₱ 120,000.00 ₱ 126,000.00 ₱ 126,000.00 ₱ 130,000.00 ₱ 135,000.00
₱
₱
66,000.00 ₱
1.00
66,000.00 ₱
66,000.00 ₱
1.00
66,000.00 ₱
66,000.00 ₱
1.00
66,000.00 ₱
66,000.00 ₱
1.00
66,000.00 ₱
66,000.00
1.00
66,000.00
₱ 239,768.20 ₱ 497,300.44 ₱ 537,909.55 ₱ 737,772.39 ₱ 950,495.77
0.12
0.12
0.12
0.12
0.12
₱ 28,772.18 ₱ 59,676.05 ₱ 64,549.15 ₱ 88,532.69 ₱ 114,059.49
CHAPTER 6
SOCIO-ECONOMIC STUDY
Corporate Social Responsibility (CSR), as defined by the World Business
Council for Sustainable Development (WBCSD), is the ongoing commitment by a
business to act ethically and contribute to sustainable economic development
while enhancing the well-being of the workforce, their families, the local
community, and society. It reflects a company's dedication to ethical conduct and
responsibility toward societal sustainability and development.
In adherence to these principles, our macaroni chicharon business is
committed to creating positive impacts across various sectors of society. Beyond
the pursuit of prof
Owner
The partners' investment, when coupled with ethical business practices, is
designed to yield profitability. This profit optimization not only ensures the viability
and expansion of the venture but also aligns with a commitment to moral principles.
Our steadfast dedication to transparency and accountability is integral to fostering
credibility and goodwill for the company.
Government
The business initiated by the proponents not only contributes to its success
but also plays a vital role in supporting the government through tax generation.
Taxes, being a crucial source of revenue, empower the government to fulfill its
responsibilities towards the nation's progress and development. Beyond financial
contributions, our business actively collaborates with the government to advocate
for social values, ensuring responsible practices and avoiding exploitation of
loopholes in business laws.
Employees
The macaroni chicharon business is committed to offering employment
opportunities to qualified individuals, fostering personal growth and professional
development. By joining our team, employees not only earn a livelihood but also
gain valuable work experiences, honing their skills and capabilities. Our business
is dedicated to providing a supportive and healthy working environment, ensuring
regular and fair wages, and adhering to reasonable working standards and norms.
We have implemented efficient mechanisms to address any worker grievances
promptly, and we are committed to recognizing and rewarding efficiency and hard
work, fostering a workplace culture that values and celebrates the contributions of
our team members
Clients
The macaroni chicharon business is dedicated to the use of socially
responsible products in its services. We prioritize fair pricing to ensure accessibility
for our valued customers. Upholding our commitment to continuous improvement,
we foster a harmonious relationship with our clients. This involves actively
addressing any grievances they may have and providing comprehensive aftersales services. Through these practices, we aim to not only deliver quality products
but also to build lasting partnerships based on trust and satisfaction.
Suppliers
The success of our business hinges on a steady supply of products and equipment
essential for delivering a range of services. As we continually increase our demand
from suppliers, we contribute to their profitability. This mutually beneficial
relationship ensures a seamless flow of resources, fostering a robust foundation
for both our operations and the prosperity of our suppliers.
Environment
The personnel in our macaroni chicharon business will undergo orientation
on 'green' practices, fostering a commitment to healthier and environmentally
conscious methodologies. The management is steadfast in adhering to the
following practices:
Reduce:

Use less toxic, safer, and natural products.

Opt for pumps over aerosol containers.

Utilize non-toxic disinfectants and cleaning agents.

Implement water and electricity conservation measures.

Install a low-flow plumbing system.

Minimize waste through proper disposal of rubbish.

Use refillable containers for products.

Adopt a dispensing system for shampoos and conditioners.

Opt for products with eco-friendly packaging, reducing plastic and
cardboard usage.

Serve water in reusable cups or glasses instead of plastic bottles.
Reuse:

Share used magazines with other organizations, friends, and customers.

Make empty containers and cardboard available for reuse by other
businesses.

Enforce a policy requiring suppliers to take back empty refillable containers.
Recycle:
Install recycling bins for paper, cardboard, plastic, and magazines.
By integrating these 'reduce, reuse, and recycle' practices into our operations, we
not only promote a greener workplace but also contribute to the broader goal of
environmental sustainability. Our commitment to these principles reflects our
dedication to responsible business practices in both the pet care and macaroni
chicharon aspects of our operation."