SQUALICIOUS FLAN

Submitted by:
Claridad, Racel
Malabanan, Michiko
Reyes, Nicole Mae
Samia, Amiel
Sibug, Charlyn

Submitted to:
Mrs. Cristina Naguit
Submitted on:
October 10, 2015

Table of Contents
Executive Summary 4
Company Background........................................................................................... ..4
Objectives 5
Mission & Vision Statements..6
Keys to Success. 6
Marketing Plan.. 7
SWOT Analysis8
Industry and Market Analysis. 10
Competitor Analysis. 12
Target Market.12
Marketing Strategies.13
Pricing Strategies..16
Place/Distribution Strategies...18
Promotion Strategies18
Timetable of Activities..19
Sales Forecast..20
Organization Plan...25
Organizational Chart26
Job Specifications for each position..27
Human Resource Management Plan
*Recruitment & Selection.32
*Orientation & Training33
*Motivational Programs34
* Code of Conduct.35
2

*Schedule of Salaries and Wages38

Technical/Production Plan.40
Steps in producing the product.41
Steps on selling the product..42
Sources of raw materials..43
Facility size & location43
Total project cost.44
Financial..49
Cost Based Pricing.50
Sales Forecast51
Comparative Income Statement (2016-2018)54
Computations of COGS.55
Breakeven Analysis56

Marketing Plan
EXECUTIVE SUMMARY

" Wag maging dayuhan sa sariling bayan." That's one of the most popular quotations to the
Filipinos. This brings us the idea of creating a product that will surely win the tastes of not just
Filipinos, but also the Filipinos at heart. Squalicious is a new innovated that produce a unique
variety of leche flan called kalabasa leche flan.
The idea of kalabasa leche flan was formulated when a group of entrepreneurs was
gathered in the house of one of their members having hard time thinking on what product to
innovate. While they are having their brainstorming, one member of the group suggested the
kalabasa leche flan that is which she learned on her girl scout camping. And then a bright idea
comes up on the minds of the businessmen that lead to the innovation of the Filipino delicacy.
Since then, the product is still seeking for improvements in order to satisfy the tastes of their
beloved customers.
Kalabasa leche flan is the perfect product; this is the innovation of the well-known
Filipino dessert delicacy. Kalabasa Leche flan is a delicious simple dessert and very easy to
make, a classic custard with healthy vegetable twist recipe. It is made from eggs, sugar,
condensed, fresh milk and cooked squash. Steamed over an open flame or stove top, with
caramel syrup shimmering on top. A best sweet treats for any occasions, especially for kids
party and a popular pasalubong treat too.
COMPANY BACKGROUND

We Filipino end up our meal with a dessert. Michiko Malabanan a sweet-a-holic offered a unique
product namely kalabasa leche flan in which it is offered as the most awaited last course in
every meal. By this we Nicole Reyes, Amiel Samia, Racel Claridad and Charlyn Sibug decided
to offer this product for the customer who wants something new and unique. We name our
company as Squalicious Company. Our group come up the name Squalicious from the word
itself squash+delicious= squalicious. Leche flan preserves the Filipino delicacies which we can
say one of our richest type of food we have. The company composed of 5 people with 1 ceo and
4 as the manager respectively
OBJECTIVES

1. To introduce the product to the market through giving away leaflets and to advertise and
promote it through the use of internet;
2. To establish a high introductory sale by lowering the regular price by 5-10 pesos to attract
more customers within the first day;
3. To gain at least 10% profit within the day;
4. To sell 100 units on the first day of operation;
5. To increase the sales by 5% on the 2nd day of operation;
6. To improve and develop the business to be more flexible;
7. To build strong customer relationship through satisfying them on our service and product
offerings.

 VISION STATEMENT

To be well known in the vicinity of Angeles on having the best quality of product which
served nutritious, delicious and reasonable priced. To build and maintain long term relationship
with stakeholders.
MISSION STATEMENT

To inspire customers to eat healthy and be lively. To serve high quality product which will
benefit and satisfy customers need and wants.
KEY TO SUCCESS
It is new- Nowadays many customer look for a food which is healthy and delicious.

Squalicious flan is not usual leche flan, it is mixed with a squash.

It is healthy- As mentioned the Squalicious flan has a squash wherein these vegetable

has its own benefits to a persons health.

It is accessible- The entrepreneurs made sure that the product is accessible to the
market in which it is located in the place in which it will be easily seen and accessed by

the customer.
It is affordable- The Squalicious flan is very affordable in which students or other
customers who have tight budget can afford to buy the product.

MARKETING PLAN

5.1. SWOT ANALYSIS

Resources
Money

Strengths
Squalicious flan is very

Weaknesses

affordable and the capital to

start up is very minimal.
The ingredients and other
materials needed to produce

Materials

the product are readily

available in the wet market
and supermarket
In doing Squalicious flan we

Machines

dont have to use machines. It

can be done by hand
processing

Methods

The methods in making

Squalicious flan is availabale
Trainings are needed to have

Manpower

The product is easy to make

efficient individual on making

the product

We have the knowledge on

Management

how to make the Squalicious

flan
Leche flan is in demand for

Moment(time)

Filipinos because we love

sweet and we used to eat
dessert after meal.

Factors in the environment

Opportunities

Threats

Squalicious flan wherein is

food is inseparable to human
Health conscious customer
kind. As long as it taste good
may not choose this kind of
and healthy for sure it will
Socio cultural

dessert because it has egg

have a good market.
yolk which consist of bad
Customers have develop a
cholesterol
habit of eating dessert after
meal
Technology can help improve

Technology and technical

the quality of the product and

help make things easier
When economic downturn

Economic

comes the spending budget of

customer will get lower
Kalabasa is not a seasonal

Natural

vegetable; they grow all

around the year.
A lack in political stability may

Political

affect businesses in the

economy
There is a peace and order in

Peace and order

the workplace and business

environment
Population is increasing. More
people mean more

Population
consumers who need and
want food.

Government provide loans to

starting businesses and we
Government Program
have venture capitalist to back
as up
The ingredients needed on
making Squalicious flan is
Global Environment
readily available anywhere in
the Philippines

5.1.1 INDUSTRY AND MARKET ANALYSIS

Kalabasa leche flan can be bought almost anywhere. They are sold in a retail store like
susies cuisine and goldilocks. It is seen outside universities, churches and other establishments.
The kalabasa leche flan manufacturers target customers who are prioritizing healthy living
through appropriate food intake and those consumers who love to eat sweets after meal as a
their dessert. The kalabasa leche flan tastier and healthier ingredients are based on the
checklist provided by certified dieticians that will boost essential nutrients needed by the body.
The kalabasa leche flan is ready for market, has passed extensive consumers test, and the
company manufacturing leche flan has contract negotiations under way at 5 major
establishments in the city where in it could be available to the consumers. And leche flan is a
common delicacy but we put a squash as the main ingredients and other ingredients with a twist
that will surely love the taste buds of the consumers. Currently, students, children and diet
conscious rarely find leche flan as their dessert after meal outside establishments like retail
store. The growing number of healthy foods enthusiast is greatly increasing nowadays. A Leche
Flan product allows health conscious consumers to enjoy food without being guilty on blood
pressure because of the nutrients and vitamins you can get from squash as the main
ingredients of it. Leche Flan manufacturers have placed its branches in neighbourhoods, store,
10

stall and establishments with greater contact to the consumers with hasty and rapid lifestyle.
Leche Flan manufacturers target niche is healthy food products for consumers with great health
concerns. Leche Flan is appropriate and perfect for consumers who find healthier options for
dieting. Leche Flan would be very suitable to direct-selling markets since it is easier to make. It
would also increase contacts with consumers who can suggest different flavors and opinions for
the products and the way of selling. And because it's direct selling these suggestions will easily
be approved and implemented. Leche Flan advantage retail store manufacturing companies is
that it allowed the direct and immediate catering of the consumers needs and suggestions.
Direct selling of Leche Flan through door-to-door delivery and kiosks placed in different places.
It will provide a faster acquisition of healthy foods that can enhance their given lifestyles.. Leche
Flan custom product eliminate unhealthy diet foods on products through daily the consumption
people will patronize it. The company anticipates that in early account penetration and superior
first class distributing teams will allow it to continue to have increasing gross and net margins
well in the future.
5.1.2 COMPETITOR ANALYSIS
The squalicious is a new version of the Pilipino Leche flan that has squash and make it
more toothsome. We prefer this kind of product because many Pilipino love to eat dessert. But
there are already existing competitors in the market which are already established. Thats why
we make sure that our product has a good quality and delicious it is also healthy because of the
squash and egg. Consumer who dont eat vegetable will learn to eat it on some way like
kalabasa leche flan because it has a new twist they are eating dessert and at the same time
they are being healthy.
5.2 TARGET MARKET
5.2.1. DEMOGRAPHICS SEGMENT
11

There are now 20,940 students enrolled at Holy Angel University S.Y 2015-2016

College of Engineering and Architecture (CEA)

College of Business and Accountancy (CBA)
College of Hospitality and Tourism Management

5132
5225
1970

(CHTM)
College of Arts, Sciences and Education (CASEd)
College of Information and Communications

1781
1501.

Technology (CICT
The College of Nursing and Allied Medical Sciences

444

(CNAMS)
College of Criminal Justice Education and

425

Forensics (CCJEF)
Laboratory Elementary School (LES)
High School (HS)
Graduate School

712
3491
259

HAU high school students (12-16 years old) with extra allowance at least P38
HAU college students (17-up years old) with extra allowance at least P38
HAU personnel and personnel
The business will expand and add new stall in the vicinity of Angeles when we already

have enough money to spend. We will put stalls on some malls and we would make orders
or we will send it to retailers and wholesaler.
5.2.2. GEOGRAPHIC SEGMENTS

Holy Angel University with at least 20,940 people can purchase it.
People who can reach to order the Kalabasa leche flan through facebook, Instagram and
other social media that weve used in promoting our product

5.2.3. PSYCHOGRAPHIC SEGMENTS

Customers who love sweets

All people especially workers who have the capacity of buying the produc
12

Lifestyle: For those customers who are health conscious will be encourage to buy

Squalicious flan because it is a healthy product.

Occasions: Squalicious flan is perfect for fiesta, birthday and other occasion because
many customer loves to eat Leche flan.

5.3. MARKETING STRATEGIES

5.3.1. PRODUCT STRATEGIES
Squalicious flan offers a wide range of ingredients to be put on your traditional leche flan
taste. There are fresh and delicious foods that can be your toppings or can be mixed with your
cold leche flan. Those foods that can be add-on are all healthy that blend the traditional leche
flan for its health benefits. You can also put some decorations in your leche flan to make it wellpresentable and to add flavors. In simple terms, we are offering customized leche flan with
different shape and flavors. Any choice of ingredients is acceptable depending to your appetite.
BRAND NAME/LOGO

SQUALICIOUS
FLAN
The logo shows the name of the product and the main ingredient which is the
squash. The name Squalicious flan comes from the word squash and delicious.
PRODUCT DESCRIPTION

13

The product Squalicious flan, a caramel crme con squash, is good for every person
regardless of age. The business have small size leche flan but as the business grow we will add
some sizes and flavors. The product is available in one shape. The cupcake-shaped leche flan
which make it attractive and eye-catching to the customer. The SqualiciousFlan offers a unique
taste of leche flan with no preservatives added that serves delicacies to the customers. This
offers only one product which is Leche Flan original and Caramel crme con squash serving
delicacies to customers. This is actually suit to the tastes of every Filipino since we found
enjoyment of eating sweet foods. The ingredients needed to make Squalicious flan are
Condensed mlik, Evaporated milk, Squash, Sugar and egg.

LABEL AND PACKAGING

It is somewhat, like this but the label we will use is the logo we did. And the packaging is
same as this shown in the picture below. We will use a transparent plastic to be more attractive
to customer and show them the appearance of the kalabasa leche flan.

14

5.3.2. PRICING STRATEGIES

Squalicious, as a newly open business, we decided to lower our price compared to our
competitor's price but in a way that we can get our income at least 15 to 50%. We make our
price more affordable in the customers so that they can taste a squalicious at lower price to
those customers whose prefer to buy affordable and delicious dessert. We are planning to less
the price of the customers who buy squalicious with a minimum of five and more pieces so that
they can get discount.
PRICING OBJECTIVE
The Pricing objective that we used is Market Penetration Strategy. It is because we charge
the lowest possible price for the customer. The group aims mostly on the buyers to reach their
satisfactory level; also we try to get the most buyers even the profit is lesser. The group didnt
limit the ingredients in the product to reach the desired taste. The product is at the affordable
level it is not expensive and it is also not cheap; it is in medium level in terms of foods. We set
the products selling price at P30.00, as an attempt of using price prompts. We set it at P30.00

15

so we could attain the reach profit. Keeping the price at a two-digit can attract customer seeing
this amount is not that big.
COST BASED PRICING

Ingredients

UOM

Required

Price (P)

Subtotal (P)

Condense Milk

380 (400g)

38.75

38.75

Evaporated milk

370 ml ( 380g)

23.75

47.50

Egg yolk

Pieces

12

60

Squash

Kilo

7.50

7.50

Brown Sugar

Kilo

12.50

12.50

TOTAL

P166.25

Computation:
Unit cost:
=166.25 / 20
=8.31 php
Rent
Electricity
Water
Promotional
Salaries of Managers
Total overhead cost

Monthly
2,000
1,000
300
90
15,000
18,390

Yearly
24,000
12,000
3,600
1,080
180,000
220,680

Overhead costs and other expenses

=220,680 / 23,853
=9 php
Direct labor cost/ unit
=36,000 / 23,853

16

=1.50
Product Price
=8.31+9+1.50
=19 php
Mark Up (58%)
=19 + 11.12
=30.2 or 30 php

5.3.3. PLACE/DISTRIBUTION STRATEGIES

DIRECT DISTRIBUTION
PRODUCER

CONSUMER

Kalabasa leche flan will be distributed with just one channel which is zero level from the
manufacturer to consumer and through the most straight forward marketing channel where our
store would sell the kalabasa leche flan directly to the customers. Since this method would be
likely be good not just but for the customer as well, since this would be able to satisfy the
customer and respond to their feedback immediately with a good number of goods and their
demand would also be satisfied immediately
5.3.4. PROMOTION STRATEGIES
1.) Advertising/Publicity
This is where we call out or give information to the customers, in this situation we could
make some tarpaulins/posters and other visual aids for ads. Through these the
17

consumers will be fascinated on what was the ad all about especially when the logo or
picture itself is appealing that it can attract customer or get attention. Also nowadays
advertising is very rampant in different social sites, because you can easily advertise
your ads freely and hassle free like through facebook, instagram, twitter and other more,
this site will help us encourage those consumers and let them our product existence in
the market and also it will spread the news easily, especially for those food lovers on
dessert will be attracted with this.
2.) Sales Promotion
The squalicious store will be having free taste of the kalabasa leche flan in order to
encourage the customers to make a purchase. The main point of kalabasa leche flan will
be focus with satisfying ingredients that contains healthful benefits which is preferred by
the customers.
3.) Personal Selling
This is where you personally selling the product to the customers. You are talking to
them face-to-face to give them information about the product and for them to encourage
it to buy to your store/stall. Other members of our group will be assigned to different
areas where they are a lot of people crossing nearby our store/stall. Together with the
posters and flyers of advertisement we have and some members of the group will be
disperse into different location to promote our product which is kalabasa leche flan so
that customers will be encourage to purchase our product.
4.) Direct Marketing
The squalicious store will be advertising through social networking sites. It has its own
website www.squalicious.com and also own Facebook Fanpage and Instagram page.
The website posted some variety of advertisements and its product. It can also be found
the company background and some other facts about store. The squalicious
fanpage/page will be shared to friends and acquaintance online in order to know the
information about the product.

18

5.4 TIMETABLE OF ACTIVITIES

Timetable for 2016-2018
Periodic Time 2016
Jan. 11 - Mar 11
April 11 - June 11

Activity
Promotion of Product
Product Launch
Distribution of product

July 11 Sept. 11
Oct. 11 Dec. 11

to retailers
Donation for Charities

Person in Charge
Michiko Malabanan
Racel Claridad

Budget
6,000
15,000

Charlyn Sibug

5,000

Nicole Mae Reyes

6,000

Nicole Mae Reyes

6,000

Michiko Malabanan

5,000

Charlyn Sibug
Racel Claridad

8,000
6,000

Michiko Malabanan

5,000

Charlyn Sibug

6,000

Racel Claridad
Nicole Mae Reyes

5,000
6,000

Period time 2017

Jan. 8 - Feb 8

Give away wallet size

calendar with the
product name and
logo
Welcome back school

Apr 8 - June 8
July 8 - Sept 8
Oct. 8 - Decr 8
Period time 2018
Jan 15 - Mar15
April 15 - June 15
July 15 Sept. 15
Oct. 15 Dec. 15

promo
Training for the staff
Donation for charities
Provide Malunggay as
additional flavor for
Leche Flan
Distribution of product
to wholesaler
Sponsor some events
Donation for Charities

5.5 SALES FORECAST

ASSUMPTIONS:
Q= 100*50
=5,000
5.6. SALES FORECAST

19

a. Base Sales

50pcs

b. Sales per day

50pcs x 30= php1,500

c. Sales per month

1,500x 30 = php45,000

A.) Sales Forecast (2016)

Month

Probability

Quantity

Price

Sales

Jan

45%

1,500

30

45,000

Feb

50%

1,575

30

47,250

Mar

55%

1,635

30

49,050

Apr

60%

1,728

30

51,840

May
June
July
Aug
Sept

65%
70%
75%
80%
85%

1,823
1,914
2,010
2,110
2,216

30
30
30
30
30

54,690
57,420
60,300
63,300
66,480

Oct

90%

2,326

30

69,780

Nov
Dec

95%
100%

2,443
2,565

30
30

73,296
76,950

Total

23,845

715,356

Sales Forecast (2017)

Sales 2016 x 1.10 Growth rate %
=(P23,845x 1.10)x30
=26,229.5x30
=P786,885

20

Month

Probability

Quantity

Price

Sales

Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Total

80%
86%
80%
70%
74%
88%
86%
70%
90%
80%
76%
160%

2,052
2,205.9
2,052
1,795.5
1,898
2,257.2
2,205.9
1,795.5
1,847
2,052
1,949.4
4,104
26,229.5

30
30
30
30
30
30
30
30
30
30
30
30

61,560
66,177
61,560
53,865
56,943
67,716
66,177
53,865
55,404
61,560
58,482
123,120
786,885

Sales Forecast (2018)

=Sales 2017 x 1.15 Growth rate%
=(P26,229.5x 1.15)x30
=27,540.98x30
=P826,229

Month

Probability

Quantity

Price

Sales

Jan

140%

3,591

30

107,730

Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov

86%
80%
70%
85%
100%
86%
90%
90%
80%
76%

2,205.8
2,052
1,795.2
2,180
2,565
2,205.2
2,308.20
1,847
2,052
1,949.4

30
30
30
30
30
30
30
30
30
30

66,177
61,560
53,865
65,407
76,950
66,177
69,255
55,404
61,560
58,482

21

Dec
Total

129%

3,308.86
27,540.97

30

99,266
826,229

5.6.1. SALES FORECAST (2016)

RATE/
POSITION

RATE/DAY

PAGRATE/YEAR

SSS

PHILHEALTH

MONTH
CEO
Director of
Finance
Director of
HR
Director of
Marketing
Director of
Operations

IBIG

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

6,000

6,000

20,40
TOTAL

180,000

212,400

0
EMPLOYEE
S
Production
Employees
Cashier
TOTAL

50

1,500

18,000

2,100

1,200

1,200

50

1,500

18,000

2,100

1,200

1200

36,000

4,200

2,400

2,400

9,000
221,400

GRAND
TOTAL

1
2
3

216,000

Production cost/unit
216,000 PHP/23,845units = 9.06php/units
Direct Labor cost/unit
36,000 + 4,200 + 2,400 + 2,400= 45,000/ 23,845units = 1.89 php/units
Overhead cost/units
180,000 + 20,400 + 6,000 + 6,000 +12,000 + 3,600 + 24,000
= 252,000/ 23,845= 10.57php/units
22

Total: 9.06 + 1.89 + 10.57 =21.02

Mark-up: 21.52 x 43%
=21.52 + 8.61
= 30.13 or 30 php/unit

23

ORGANIZATION
PLAN

Organization Plan
Organizational Chart
CEO
Amiel Samia

24

Director of
Finance
Nicole Mae
Reyes

Director of
Marketing
Michiko
Malabanan

Director of
HR
Charlyn Sibug

Director of
Operations
Racel Claridad

Production
Employee
Ginelle Miguel

Cashier
Irene Manabat

Job Specification for each position:

Finance Director

Education
Bachelors Degree in Accountancy, or a related field required.
25

 Masters degree in Accounting or a related field preferred.

Experience
Extensive financial or cost management experience.
Experience in the preparation of financial statements, budgets and
forecast.
Experience of reporting and monitoring to tight deadlines.
Required Skills, Knowledge, and Characteristics
Effective financial management skills.
Excellent organizational skills with the ability to coordinate activities.
Good literacy, numeracy and IT skills.
Good communication and influencing skills.
Comfortable with a team approach to management and the ability to
manage several major activities simultaneously.

Human Resource Director

Education
Bachelors Degree in Human Resources, Business, or a related field
required.
Masters in Business or Human Resources Management or a related field

preferred.
Experience
Experience in organization development and change management.
Significant experience of developing and implementing HR Policies.
Substantial experience of delivering an efficient & effective HR service
Required Skills, Knowledge, and Characteristics
Strong effective communicator in writing, business presentations and
in interpersonal communication.
Demonstrates a high degree of confidentiality and unusual common
sense.
Able to direct the efforts of a team of diverse human resources
professionals.
Expert in employment law and employee relations and communication.

26

Marketing Director

Education
Bachelors Degree in Marketing or a related field required.
Masters in Business or Marketing preferred.
Experience
Worked in a flexible, employee empowering work environment.
Proven knowledge and application of a wide range of marketing
techniques and concepts.

Required Skills, Knowledge, and Characteristics

Excellent in oral and written communication skills.
Ability to respond positively to pressure and take a flexible approach to

change.
Ability to think creatively.
Ability to work well with a wide range of people.
Demonstrated effectiveness in holding conversations with customers.
Ability to lead in an environment of constant change.

Operations Director

Education
Bachelors Degree in business administration, commerce, management,
industrial technology or industrial engineering.
Masters Operations Management or a related field preferred.
Experience
Industry relevant production experience.
Experience in organizational effectiveness and operations management.
Experience in the management of installation teams.
Required Skills, Knowledge, and Characteristics
Knowledge of business and management principles and practices.
Advanced knowledge in using MS Office products.
Knowledge of building systems to maintain effective communication
between departments in a service delivery environment.
Demonstrate a good standard of literacy and numeracy and strong
commercial skills.
Have a strong operations and systems based approach.
27

Production Employee

Education
High School Diploma preferred.
Required Skills, Knowledge, and Characteristics
Productive, High Quality, Proper Attitude.
Team player.
Ability to learn.
Ability to follow directions.
Ability to work independently.
Good verbal and written communication skills.

Cashier

Education
Bachelors Degree in Accountancy, or a related field required.
Experience
Must have at least experience working as a store or boutique cashier.
Previous experience of working within a small Finance Team.
Experience in accounting software.
Required Skills, Knowledge, and Characteristics
Excellent communication skills.
Flexibility on working hours.
Knowledge in basic Mathematics.
Good analytical skills.
Must have pleasing personality.
Ability to communicate with associates and customers.
Ability to read, count, and write to accurately complete all documentation.
Ability to operate all equipment necessary to perform the job.

6. Human Resource Management Plan

6.1 Recruitment and Selection
Recruitment
Recommendations from current employees. It could be effective because the
employee has a vested interest and it is fast, at the same time efficient.
28

 Word of mouth. Through the use of word of mouth, it eliminates time consuming
search for applicants.
Post an advertisement wherein most likely to reach your potential job
candidates. Internet has become the leading venue for posting job openings and
also in local newspapers. This would create an opportunity to attract more highly
qualified candidates.
Posting job announcements. Aside from being inexpensive, it may provide
wide exposure in order to attract qualified applicants.
Selection
Identify the selection criteria. In order to hire the right employee, you must
know the skills needed to carry out the job tasks, the knowledge needed,
personal characteristics, or if you want to, ask someone who performs the job to
help you determine the essential job tasks and the essential skills required.
Review the application forms and identify your best candidates. Knowing
what you're looking for in terms of experience, education and skills will help you
identify potential candidates quickly.
Screen candidates by interviews. Once you've narrowed your stack of
application forms to a handful of potential applicants, call the candidates and ask
questions to further narrow the field. In your face-to-face interviews will help
ensure you are evaluating candidates equally.
Select candidates for assessment. Based on the responses to your questions,
select the candidates you feel are best qualified.
Obtain more information from your reference checks. By asking previous
employers and supervisors questions that cannot simply be answered by yes or

29

no. Like for example, asking them what advice would they give you in hiring this
candidate.
6.2 Orientation / Training

Give a Strategic Overview. Explain to the new hire your team, department, and
corporate objectives and link those to individuals job. Explain to the new

employee your view of how they fit in to the bigger picture.

Introduce the New Employee. On the first day of the new employee, you
should personally introduce him or her to all the members of the team. Giving
him or her an explanation of each persons role and how their roles linked to

each other.
Demonstrate the Task that the New Employee will perform. Position yourself
correctly alongside the employee so he or she will see the job exactly as it should
be performed. As you demonstrate the job, explain what youre doing and why.
Because people retain information better when they understand the reasons for

performing a job in a certain way.

Cultivate your Relationship. This will help employees build lasting relationships
by having regular one-on-one conversations with the management. Setting up a
series of weekly meetings for you and the employee to discuss expectations and
get to know each other will help cultivate a strong and open relationship between

you and the employee.

Arrange for Training. Assign a mentor that will help the employee in the job
training. Signing the employee up for internal or external training courses, or
putting the employee on projects that will give them a broad view of their job and
the company.

30

6.3 Motivational Programs

Saying Thank You. Recognizing the performance and the progress of the
employees is already means a lot to them. Often times, employees just want to
be recognize for their good work. A simple Thank you or Good job from the
CEO or from their respective managers can go a long way.
Having fun at the office like sharing jokes or playing sports during break
time. Top management must keep things light by offering sports equipment like
ping-pong tables on-site or by letting managers and employees throw jokes
during lunchtime or break time just for fun in order to absorb good vibes inside
the office and also to have a productive working condition with each and
everyone.
Giving a free vacation to the best employee. By way of acknowledging
employees inspired performance, it is best to give him or her a free vacation
instead of money because money, once spent, it can be forgotten. And not
everyone is motivated by money, so that non-financial rewards can be important
alternatives in motivating or awarding your employees.
6.4 Code of Conduct
Our core values guide our behavior, and generally, our behaviors determine how we are
being aware of as a company. Recognizing that our business success is founded upon
a commitment to certain principles.
Communicate honestly and act with integrity:

Doing the right thing even if unpopular or risky

Taking actions that are consistent with words
31

Dealing with issues directly, openly and respectfully

Passionate about delivering for our shareholders and meeting our customers
needs:

Having high performance expectations and a mindset of excellence

Taking active responsibility for the quality of service we provide to customers and

others
Demonstrating a passion for understanding and meeting the needs of our
shareholders and customers

Work together as a team and are committed to excellence:

Collaborating across functions and work together to create partnerships

Promoting teamwork among groups and discouraging versus them thinking.
Holding ourselves and others obligated for results

Celebrate our diversity and respect each other:

Appreciating and valuing each others life experiences

Treating fellow employees and customers with respect

Disciplinary Actions in Firm:

While disciplining an employee or a member of the organization, it is always
important to make sure that the disciplinary action meted out to the offender is always
comparable to the offense committed. Another important thing in punishing offenders is
that the person must be given the opportunity to be heard. He must explain reasons for
his action before a decision is taken against him. For the commission of any of the
following offenses, an employee shall be subject to disciplinary action up to and

32

including discharge. Disciplinary action for the same or different offenses shall progress
in the following manner:
Verbal warning. Verbal statement to employee that he/she has violated a rule
and/or regulation and that such violation may not continue.
Written reprimand. Formal notification in writing to employee that he/she has
violated a rule and/or regulation.
Suspension. Loss of work and wages for a specific number of hours or days, but
not for more than one work week, depending on the severity of the offense.
Notice of suspension is provided to the employee in writing.
Discharge. The employer/employee relationship is severed.
If an employee receives four warning notices for the same or different offenses within a
period of 12 consecutive months, the employee shall, at the time of the issuance of the
fourth such notice, be subject to discharge.
A. Excessive absenteeism.
B. Excessive tardiness.
C. Inattentiveness to work, including but not limited to, failure to start work at the
designated time, quitting work before proper time, or leaving assigned work area,
building, or project during working hours without authorization from appropriate
supervisor.
D. Posting unauthorized materials on walls or bulletin boards; defacing or removing
authorized material from bulletin boards.
E. Violation of a safety rule or safety practice.

33

F. Smoking in prohibited areas.

G. Failure to report for work without giving the supervisor or department head notice of
absence within two hours after the beginning of the scheduled workday.
H. Vending, soliciting or collecting contributions on the company's time or premises
without prior appropriate authorization from the company.
I. Gambling, lottery, or any other game of chance on the employer's premises during
working hours.

Application to Punitive Sanctions

The following actions shall be followed in the implementation of punitive sanctions:
1. Well-timed penalties
Upon fulfillment of the investigation procedures unfold, punitive action or
penalty shall be imposed directly.
2. Uniformity of discipline
The same ordered sanction or discipline shall be applied to offenders of
the same offense committed under similar facts or chances regardless of
rank or position of the employee concerned.
3. Prescription Period
The offense and the disciplinary action/discipline imposed on an employee
shall be abolish from his / her personnel record after a prescription period shown
below.
Written Warning One (1) year from date of the written reprimand
Written Reprimand Two (2) years from the date of written warning
Suspension Five (5) years from the last day of the last suspension
4. Preventive Suspension
34

Management must place an employee on preventive suspension of not

more than thirty (30) days without pay if in their judgment his or her
continued presence in the workplace poses a serious threat to the wellbeing of other employees or to the property of the Company.
The purpose of this Code of Conduct is to provide employees with guidance on the
standards of behavior expected of them in performing their duties of employment and in
their dealings with fellow employees and members of the organization.
The Organization believes in being an integrated organization and that the action of
every employee affects its entire organization and reputation. Whether its improving
welfare and reliability, delivering better service for our customers, or earning back their
trust and confidence, all of us at the company are working hard to ensure that our
organization is on a solid foundation for the future.
7. Schedule of salaries, wages, and benefits
RATE/
POSITION

RATE/DAY

PAGRATE/YEAR

SSS

PHILHEALTH

MONTH
CEO
Director of
Finance
Director of
HR
Director of
Marketing
Director of
Operations

IBIG

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

6,000

6,000

20,40
TOTAL

180,000
0

EMPLOYEE
35

212,400

S
Production
Employees
Cashier

50

1,500

18,000

2,100

1,200

1,200

50

1,500

18,000

2,100

1,200

1200

36,000

4,200

2,400

2,400

TOTAL

9,000
221,400

GRAND
TOTAL

216,000

1. Production cost/unit
216,000 PHP/23,845units = 9.06php/units
2. Direct Labor cost/unit
36,000 + 4,200 + 2,400 + 2,400= 45,000/ 23,845units = 1.89 php/units
3. Overhead cost/units
180,000 + 20,400 + 6,000 + 6,000 +12,000 + 3,600 + 24,000
= 252,000/ 23,845= 10.57php/units
Total: 9.06 + 1.89 + 10.57 =21.02
Mark-up: 21.52 x 43%
=21.52 + 8.61
= 30.13 or 30 php/unit

36

TECHNICAL/
PRODUCTION
PLAN

6. Technical / Production Plan

6.1 Steps to produce the product

1. Peel the squash and boil for 20

minutes. Mash thoroughly using a
37
fork.

2. Combine the mashed mixture, milk,

and egg. Set aside.

3. Caramelize the brown sugar and

line the pan mold.

4. Pour the mixture into the lined pan

mold and cover with aluminum foil or
plastic.
5. Steam in hot water (double boiler)
for 40 minutes or until done.

6. Set aside. When it gets warmer

after 20 minutes, put it in the
container.

7. Chill and serve.

Steps on how to sell

When a customer enter the booth/stall

we must greet them Good morning
maam/sir, Welcome to Squalicious flan

38

In the counter, the salesperson must

introduce the product that they serve
and answer the question of the
customer. Always make the customer
feel respected and comfortable.

When the customer has already choose

what product he/she wants. Give the
product in a presentable and neat way.
Make sure that all the orders will be given.

Once the customer already paid never

forget to say thank you maam/ sir with a
sincere smile

Finally, after the customer bought. Dont

forget to say thank you maam/ sir come
again with a sincere smile

6.2. Sources of raw materials

Our suppliers would be Jenra mall supermaket, Jumbo Jenra supermarket, Angeles
Filipino Enterprise, San Nicolas Market and CG-Mart.
Jenra mall super market/ Jumbo Jenra supermarket

39

Condense Milk
Evaporated milk

Brown Sugar
Egg
Squash
Container
Spoon

CG-Mart
San Nicolas Market
Angeles Filipino Enterprise

6.3. Facility size and location

A
B
C
D
E

Dining Table
Refrigerator
Kitchen sink
Stove
Door

Mixing and packing

Storage of the finished product
Washing
Cooking
Entry and exit

The working area is about 80 sq m with a concrete floor.

Building improvements
Note 1:
The increased volume of Kalabasa Leche flan production prompted the managers to
make a decision to renovate the kitchen to have a wider work place and put needed items which
will help to accomplish the business that costed 123,153.
40

Building Improvements

15,000

Plant & Equipment

Kitchen Utensils & Equipment (Note 2)
Furniture & Fixture (Note 3)
Office Equipment (Note 4)
Office Supplies (Note 5)
Refundable Deposits (Note 6 )
Pre- Operating Costs
Permits & Licenses

15,165
1,600
2,000
2,000
2,000
12,765

Working Capital ( 1 month, unless otherwise

indicated)
Ingredients (Note 8)
Packaging Materials (Note 9)
Salaries (Note 11)
Employee Benefits (Note 12)
Share of Utilities (Note 13)
Telephone (Note 14)

166.25
728
18,000
24,600
3,800
900

48,194

Cash (Note 15)

48,194

TOTAL PROJECT COST

123,153

Sources of fund
Equity
Debt
.

123,153
0

6.4. Total project cost

Building Improvements

15,000

Plant & Equipment

Kitchen Utensils & Equipment (Note 2)
Furniture & Fixture (Note 3)
Office Equipment (Note 4)
Office Supplies (Note 5)
Refundable Deposits (Note 6 )
Pre- Operating Costs
Permits & Licenses

15,165
1,600
2,000
2,000
2,000
12,765

Working Capital ( 1 month, unless otherwise

indicated)
Ingredients (Note 8)
Packaging Materials (Note 9)
Salaries (Note 11)
Employee Benefits (Note 12)

166.25
728
18,000
24,600
41

Share of Utilities (Note 13)

Telephone (Note 14)

3,800
900

48,194

Cash (Note 15)

48,194

TOTAL PROJECT COST

123,153

Sources of fund
Equity
Debt

123,153
0

Note 2: Kitchen Tools Equipment, Squalicious Production

Qty
1
1
4
2
2
4
4
4
1
25
2
1
1
1

Kitchen tools Equipment

Steamer
Refrigerator
Plate
Knife
Chopping Board
Spoon
Pot Holder
Bowl
Blender
Molding Dish
Fork
Wooden Spoon or Ladle
Measuring cups
Quad Burner Stove
TOTAL COST

Unit Price
1500
10,000
15
50
50
10
5
30
600
5
10
50
30
3,000

Total Price
1,500
10,000
60
100
100
40
20
120
600
125
20
50
30
3,000
15,165

Unit price
1000
150

Total Price
1,000
600
1,600

Note 3: Furniture and Fixtures

Qty
1
4

Furniture and Fixtures

Working Tables
Mono block Stool
TOTAL COST

Note 4&5: Office Equipment/ Supplies

Our company purchased an electronic calculator with tape at a cost P2,000. Then we
budgeted P2,000 for office supplies, including several booklets of official receipts, sales
invoices, and delivery receipts, a sales book, a purchased book, a journal and several rolls of a
calculator tape.
42

Note 6: Refundable Deposits

Our company paid an advanced deposit for two LPG cylinders.
Note 7: Permits and License
Permits and License
Mayors permit
Electrical installation Permit and inspection fees
Sanitary inspection fee
Fire inspection fee
TOTAL

Total Price
140
100
600
100
940

Note 8: Ingredients
Ingredients
Condense Milk
Evaporated milk
Egg yolk
Squash
Brown Sugar
TOTAL

UOM
380 (400g)
370 ml ( 380g)
Pieces
Kilo
Kilo

Required
1
2
12
1/2
1/4

Price (P)
38.75
23.75
5
7.50
12.50

Subtotal (P)
38.75
47.50
60
7.50
12.50
P166.25

Note 9: Packaging Materials

Item

Qty Needed

Minimum Order /Purchase

Plastic cups

7 packs

Single pack of 50 pieces

Labels

120 sheets

20 labels per sheet

Scotch tape

15 rolls

Plastic bags
Ribbon

Cost/Unit

Total cost

40

280

0.40

48

Single roll

15

225

5 packs

Single pack of 100 pieces

10

50

5 rolls

Single roll

25

125

TOTAL

728

LPG (Note 10) See Note 13

Note 11: Salaries
No.
2
4
1

Position
Helper
Managers
CEO
Payroll per Month
Payroll per Year

Monthly Salary
1,500
3,000
3,000

43

Total
3,000
12,000
3,000
18,000
216,000

Payroll with 13th Month pay

234,000

Employee Benefits ( Note 12 )

No.

Position
No.

SSS Employers Share/Person

Position

Total per month

4,200

Helper

2,100

4,200

Directors

4,080

16,320

CEO

4,080

4,080

SSS remittances per month/ Employers share

24,600

SSS remittances per year/ Employers share

295,200

No.
2

Position
Helper

SSS Employers Share/Person

1,200

Total per month

2,400

Directors

4,800

4,800

CEO

4,8000

1,200

PhilHealth remittances per month/ Employers share

8,400

PhilHealth remittances per year/ Employers share

100,800

Note 13: Utilities

Electricity
Water
Gas
Rent

P1,000
300
500
2,000
3,800

Total
Note 14:

This covers Squalicious flans monthly expenses for its cell phone use for the business
transactions particularly in communication directly and personally with suppliers and customers.
Note 15: Cash
Our company set aside a minimum cash balance of P46,848. This amount is equivalent
to our working capital for one week.
Total of Project Cost Items in Squalicious Production
44

Building Improvements

15,000

Plant & Equipment

Kitchen Utensils & Equipment (Note 2)
Furniture & Fixture (Note 3)
Office Equipment (Note 4)
Office Supplies (Note 5)
Refundable Deposits (Note 6 )
Pre- Operating Costs
Permits & Licenses

15,165
1,600
2,000
2,000
2,000
12,765

Working Capital ( 1 month, unless otherwise

indicated)
Ingredients (Note 8)
Packaging Materials (Note 9)
Salaries (Note 11)
Employee Benefits (Note 12)
Share of Utilities (Note 13)
Telephone (Note 14)

166.25
728
18,000
24,600
3,800
900

48,194

Cash (Note 15)

48,194

TOTAL PROJECT COST

123,153

Sources of fund
Equity
Debt

123,153
0

45

FINANCIAL

COST BASED PRICING

Ingredients

UOM

Required

Price (P)

Subtotal (P)

Condense Milk

380 (400g)

38.75

38.75

Evaporated milk

370 ml ( 380g)

23.75

47.50

Egg yolk

Pieces

12

60

Squash

Kilo

1/2

7.50

7.50

Brown Sugar

Kilo

1/4

12.50

12.50

TOTAL

P166.25

Computation:
Unit cost:

46

=166.25 / 20
=8.31
Rent
Electricity
Water
Promotional
Salaries of Managers
Total overhead cost

Monthly
2,000
1,000
300
90
15,000
18,390

Yearly
24,000
12,000
3,600
1,080
180,000
220,680

Overhead costs and other expenses

=220,680 / 23,853
=9
Direct labor cost/ unit
=36,000 / 23,853
=1.50
Product Price
=8.31+9+1.50
=19
Mark Up (58%)
=19 + 11.12
=30.2 or 30
5.5 SALES FORECAST
ASSUMPTIONS:
Q= 100*50
=5,000
5.6. SALES FORECAST

47

a. Base Sales

50pcs

b. Sales per day

50pcs x 30= php1,500

c. Sales per month

1,500x 30 = php45,000

B.) Sales Forecast (2016)

Month

Probability

Quantity

Price

Sales

Jan

45%

1,500

30

45,000

Feb

50%

1,575

30

47,250

Mar

55%

1,635

30

49,050

Apr

60%

1,728

30

51,840

May
June
July
Aug
Sept

65%
70%
75%
80%
85%

1,823
1,914
2,010
2,110
2,216

30
30
30
30
30

54,690
57,420
60,300
63,300
66,480

Oct

90%

2,326

30

69,780

Nov
Dec

95%
100%

2,443
2,565

30
30

73,296
76,950

Total

23,845

715,356

Sales Forecast (2017)

Sales 2016 x 1.10 Growth rate %
=(P23,845x 1.10)x30
=26,229.5x30
=P786,885

Month

Probability

Quantity

Price

Sales

Jan

80%

2,052

30

61,560

48

Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Total

86%
80%
70%
74%
88%
86%
70%
90%
80%
76%
160%

2,205.9
2,052
1,795.5
1,898
2,257.2
2,205.9
1,795.5
1,847
2,052
1,949.4
4,104
26,229.5

30
30
30
30
30
30
30
30
30
30
30

66,177
61,560
53,865
56,943
67,716
66,177
53,865
55,404
61,560
58,482
123,120
786,885

Sales Forecast (2018)

=Sales 2017 x 1.15 Growth rate%
=(P26,229.5x 1.15)x30
=27,540.98x30
=P826,229

Month

Probability

Quantity

Price

Sales

Jan

140%

3,591

30

107,730

Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Total

86%
80%
70%
85%
100%
86%
90%
90%
80%
76%
129%

2,205.8
2,052
1,795.2
2,180
2,565
2,205.2
2,308.20
1,847
2,052
1,949.4
3,308.86
27,540.97

30
30
30
30
30
30
30
30
30
30
30

66,177
61,560
53,865
65,407
76,950
66,177
69,255
55,404
61,560
58,482
99,266
826,229

49

5.6.1. SALES FORECAST (2016)

PAGPOSITION

RATE/DAY

RATE/MONTH

RATE/YEAR

SSS

PHILHEALTH
IBIG

CEO

100

3,000

36,000

4,080

1,200

1,200

Director of
Finance

100

3,000

36,000

4,080

1,200

1,200

Director of HR

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

100

3,000

36,000

4,080

1,200

1,200

180,000

20,400

6,000

6,000

Director of
Marketing
Director of
Operations
TOTAL
EMPLOYEES
Production
Employees
Cashier

50

1,500

18,000

2,100

1,200

1,200

50

1,500

18,000

2,100

1,200

1200

36,000

4,200

2,400

2,400

TOTAL

212,400

9,000
221,400

GRAND
TOTAL

216,000

4. Production cost/unit
216,000 PHP/23,845units = 9.06php/units
5. Direct Labor cost/unit
36,000 + 4,200 + 2,400 + 2,400= 45,000/ 23,845units = 1.89 php/units
6. Overhead cost/units
180,000 + 20,400 + 6,000 + 6,000 +12,000 + 3,600 + 24,000
= 252,000/ 23,845= 10.57php/units
Total: 9.06 + 1.89 + 10.57 =21.02
Mark-up: 21.52 x 43%
=21.52 + 8.61
= 30.13 or 30 php/unit
COMPARATIVE INCOME STATEMENT 2016-2018

50

2016

% to sales

2017

% to sales

2018

% to sales

Sales
COGS

715,356
198,219.88

100%
27.71%

786,885
218,032.72

100%
27.71%%

826,229
228,934.31

100%
27.71%

Gross Profit

517,136.12

72.29%

568,852.28

72.29%

597,294.69

72.29%

Less expenses:
Rent
Salaries
Utilities
Wages
Promotion
Total
expenses
Net Ptofit
Tax

24,000
36,000
27,600
180,000
1,080

3.35%
5.03%
3.86%
25.16%
0.15%

24,000
36,000
27,600
197,980.27
1,080

3.05%
4.58%
3.51%
23.96%
0.14%

24,000
36,000
27,600
197,964.47
1,080

2.90%
4.36%
3.34%
23.96%
0.13%

268,680

37.05%

286,660.27

36.43%

286,644.47

34.69%

248,456.12

35.24%

282,192.01

35.86%

310,650.22

37.6%

79,505.96

11.11%

90,301.44

11.48%

99,408.07

12.03%

168,950

24.13%

273,160.57

24.30%

211,242.15

25.57%

rate(32%)
Net profit
after tax

Computation of COGS
Sales forecast 2016
23,853 x 166.25 / 20
=198,219.88
Sales forecast 2017
26,229.5 x 166.25 / 20
=218,032.72
Sales forecast 2018
=27,540.97 x 166.25 / 20
51

=228,934.31
Breakeven Analysis
UVC= 198,219.88 + 180,000 / 23845
=378,219 / 23845
=15.86
UVC= 218,032.72 + 197,980.27 / 26,229.5
=416,021.09 / 26,229.5
=15.86
UVC= 228,934.31 + 197,964.47 / 27,540.97
=426,898.78 / 27,540.97
=15.50
BE Volume= 88,680/30-15.86
=6,271.57
BE Volume= 88,680/30-15.86
=6,271.57
BE Volume= 88,680/30-15.50
=6,115.86
BES= 6,271.57 x 30

52

=188,147.1
BES= 6,271.57 x 30
=188,147.1
BES= 6,115.86 x 30
= 183,475.8
2016 Forecast
Fixed cost
Rent
Salaries
Utilities
Promotional
Total

Amount
24,000
36,000
180,000
1,080
88,680

Variable Cost
COGS
Wages

Amount
198,219.88
180,000

Total

378,2189.88

Amount
24,000
36,000
180,000
1,080
88,680

Variable Cost
COGS
Wages

Amount
218,032
197980.27

Total

416,012.99

Amount
24,000
36,000
180,000
1,080
88,680

Variable Cost
COGS
Wages

Amount
228,934.31
197,964

Total

426,898.78

2017 Forecast
Fixed cost
Rent
Salaries
Utilities
Promotional
Total

2018 Forecast
Fixed cost
Rent
Salaries
Utilities
Promotional
Total

53