Business Plan

Westmead International School
School of Economics, Business and Accountancy
COMPANY OVERVIEW
This part of the business plan contains the company’s nature, vision,
mission, goals and objectives, core values and the location of the business. The
company name is MEI’ ZCHIN Manufacturing Company, which is derived from
the first names of the proponents: MEI’ for Meliza and CIN for Gracelyn. Z and H
were added to make the name sound more interesting. Z is silent in the
pronunciation of ZCHIN. The proposed product brand name is Mùzhì. It is a
Chinese word, which means “wooden”. The product is a wooden tealight candle
holder. The company will be operated by Ms. Gracelyn R. Castillo and Ms.
Meliza N. Bacayo.
Introduction
A simple candle can give light to a dark path, a simple word can provide
encouragement to the hopeless, while a simple holder can help a thing to stand.
Tealights are especially popular for use with candle holders. From small pockets
of glass, metal, ceramic and other materials to larger ones. Tealight lamp holders
come in a wide range of styles, colors, and shapes. Holders have an
appropriately sized cup for tealight candles, either scented or unscented.
Discount stores, gift stores, and home decor stores often carry an array of
holders for these small candles. The proponents thought of producing a unique
Mùzhì: Wooden Tealight Candle Holder
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product called Mùzhì, a wooden tealight candle holder, because they have found
inspiration in simple things. The uniqueness and elegance of this simple candle
holder would convey motivation to their potential customers. The name Mùzhì
comes from a Chinese word, which means “wooden”. The type of industry is
wood manufacturing.
The classic block design is perfectly made for those people, who want to
add a touch of elegance to their homes. Once placed with lighted tealight candles,
it can provide a relaxing atmosphere, where people can de-stress at the comfort
of their homes.
Nature of the Business
The business is registered in the Securities and Exchange Commission
(SEC) under the name, MEI’ ZCHIN Manufacturing Company. It will introduce an
innovative approach to a wooden type project at a very affordable price. The
product Mùzhì is purposely created as a home décor, which can be placed on the
counter of living rooms or bedrooms. Prospective customers can also purchase it
as a gift or souvenir. It can be a perfect gift item for those people, who are fond of
collecting tealight candles and lighting them for relaxation purposes.
MEI’ ZCHIN Manufacturing Company also offers customization of the
product. Originally, the product is carved with the letters L, O, V, and E
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composing of the word “LOVE”. The price of the customized product will vary
depending on the letters and design to be added.
MEI’ ZCHIN Manufacturing Company will make use of a sustainable wood
material named Palochina. Palochina is a type of wood that could also be used
to make pieces of furniture in houses such as beds and closets or even shoe
racks, tables and chairs in dining rooms and bookshelves in living rooms. This
type of wood is used to make Mùzhì: Wooden Tealight Candle Holder. “Mùzhì” is
creatively designed and is eco–friendly. The company will make its own unique
designs and ideas to keep up with the market trends.
Product Description
MEI’ ZCHIN Manufacturing Company will offer a product carrying the
brand name “Mùzhì”. This product aims to bring out the artistry and creativity of
the Filipino people through the manufacturing of quality wooden products.
The Mùzhì: Wooden Tealight Candle Holder will be 3 inch in width, 3.5
inch in length and 0.25 lbs in weight. The hole of the wooden tealight candle
holder, where the stainless base is located, will be 1 1/2 inches like the tealight
size. The weight of the product will be properly measured as part of the safety
precautions. Even with external intervention, the wooden tealight candle holder
will remain still and will stand firmly in its place.
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The MEI’ ZCHIN Manufacturing Company offers the Mùzhì: Wooden
Tealight Candle Holder in different styles, colors and designs such as animal
designs, quotations designs, landscape paint designs, letters, numbers and
shapes designs. Likewise, the stainless base of the tealight candle holder can
also prevent a fire accident from happening. For additional safety precautions,
the product with lighted candles should be kept away from children.
Company Vision, Mission, Goals and Objectives
It is important for the company to have its vision, mission, goals and
objectives. It represents MEI’ ZCHIN Manufacturing Company’s vision, its extent
and length of time of its operation and business experiences. Its mission
signifies the company’s existence. The core values set out guiding principles,
goals, and objectives. The goals and objectives embodies what the company
intends to introduce and achieve in the market.
Vision
MEI’ ZCHIN Manufacturing Company is a premier manufacturer of
wooden tealight candle holders in Batangas City, exceeding industry standards
through innovation.
Mission
MEI’ ZCHIN Manufacturing Company continually strives for excellence by
building and maintaining a team of professionally skilled and highly motivated

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employees, who are responsible for providing quality products and services to
customers.
Goals and Objectives
MEI’ ZCHIN Manufacturing Company aims to improve overall
effectiveness, build influence in the market and grow steadily guided by the
following objectives:
 To enhance customer satisfaction.
 To improve product quality.
 To implement new equipment to decrease process, time and production
costs.
 To improve employee skills.
 To improve profitability.
Core Values
Innovation: The company will develop the features and purposes of
Wooden Tealight Candle Holder that will exceed costumers’ expectation.
Integrity: It is consistency of actions, values, methods, measures,
principles, expectations and outcomes. MEI’ ZCHIN Manufacturing Company will
strive to continually observe the best way to improve its production .

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Leadership: It can be described as the process of social influence in
which one person can gain the support of others in the accomplishment of
customer satisfaction.
Quality: It is the measure of excellence or state from defects and
deficiencies and significant variations. Priority to quickly respond to difficult
situations with care in cases of complaints regarding the product.
Location of the Business
In starting a business, location is one of the key factors to consider. The
proponents have determined the location by assessing and considering the
accessibility and convenience of the target market.
The MEI’ ZCHIN Manufacturing Company site will be located at Barangay
10, D. Silang Street, Batangas City. Delivery and transportation expenses will be
minimal. The building will be rented with the amount of PHP10,000 per month.
The proponents also decided to put up the office within the manufacturing site to
ensure stable productivity and open communication between the employees and
the administrators. This eventually will prevent delays and mismanagement of
time, leading towards a proper dissemination of information and giving updates to
the employees. The proponents have chosen this location because it is near the
malls, such us Bay City Mall, Nuciti Central Mall and SM City Batangas, where
the products will be delivered and displayed on consignment basis.
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Summary
To sum up, MEI’ ZCHIN Manufacturing Company will be operated by the
partners and owners, Gracelyn R. Castillo and Meliza N. Bacayo. This will be
registered under General Partnership at the Securities and Exchange
Commission (SEC). The office and manufacturing site will be located at
Barangay 10, D. Silang Street, Batangas City.
The company will introduce a tealight candle holder that is called Mùzhì:
Wooden Tealight Candle Holder. The product is said to be unique because it is
beautifully carved and is made of Palochina wood. The company is dedicated to
deliver quality products and excellent service for customer satisfaction.
The company will also distribute its product, on consignment basis, to SM
City Batangas, Bay City Mall, and Nuciti Central Mall. Thus, effectively reducing
the cost of transportation for the delivery of the products. The company and its
management will be visible and easily located and contacted by the buying public
for queries or complaints.
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BUSINESS ENVIRONMENT
This section reveals the company environment, including notions on how
the business will survive in case problems will be encountered along the way.
This part of the study will emphasize on the discussion about the company’s
environment, analysis of the industry, where the firm belongs and a description
of its direct and indirect competitors.
Direct Competitors
Competition always exist in the business world. Direct competitors are
described as companies that produce the same goods or services that are
offered for sale in the market as those produced by one or more other companies.
The direct competitors of MEI’ ZCHIN Manufacturing Company are Wood
Candle Holder Manufacturer, Benzara Wood Candle Holders and Lois Creations
India. Table No. 1 shows the direct competitors.
Table No. 1
Direct Competitors of MEI’ ZCHIN Manufacturing Company
Direct Competitors Strength Weaknesses
Wood Candle Holder Strong productivity and
The design is very common.
Manufacturer competitive price.
World-class range of products High price and cannot deliver on
Benzara Wood Candle Holders
and low price. time.
Lois Creations India Popular among customers. Low quality.
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Indirect Competitors
This is about the conflict between vendors, whose products or services
are not the same but they could satisfy the same consumer need. The term
contrasts with direct competition, in which businesses are selling products or
services that are essentially the same.
After certain observations, the proponents have identified some particular
indirect competitor companies that are currently engaged in the production of
items similar to Mùzhì: Wooden Tealight Candle Holder in the Philippines. These
include Crystal Shop, Liwanag, Delta Brands Inc., Manila Wax Commercial and
Eton Art Candle OYC Candle. Table No. 2 shows the indirect competitors of
MEI’ ZCHIN Manufacturing Company.
Table No. 2
Indirect Competitors of MEI’ ZCHIN Manufacturing Company
Direct Competitors Strength Weaknesses
Gives newly designed products
Crystal Shop Low quality
to customers.
Wide range of varieties and
Liwanag High price
reasonable prices.
.Good quality and reasonable
Delta Brands Inc. High price
price.
Pay more attention to products
Manila Wax Commercial Not popular in online stores.
quality and safety.
New items developed every
Eton Art OYC Candle Poor connection to customers.
week and good quality.
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Potential Competitor
Potential competitors are businesses or individuals that may possibly be a
probable competitor of MEI’ ZCHIN Manufacturing Company after introducing
Mùzhì: Wooden Tealight Candle Holder in the market.
MEI’ ZCHIN Manufacturing Company’s potential competitors are Crystal
Gift Manufacturer, Candle Holder Manufacturer, Philadelphia Manufacturing
Company Candle Holders, Candle Business At Home, Glass Candle Holder,
Gorham Manufacturing Company Candle Holder And T-Lite Holders
Manufacturers & Suppliers. They are considered as potential competitors of the
company because they are all capable to imitate the product that the company
offers.
Customer Profile
Customers always make sure that they get their money’s worth with the
products they buy. MEI’ ZCHIN Manufacturing Company will offer to female
customers in every household, 33 years old and above. The main targets of the
company are those families, who have a monthly income of PHP15,000.00 and
above and are living in accessible areas in Batangas City.
Industry Analysis
Industry Analysis is an important market strategy tool that business people
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use before introducing new products/ services in the market. Industry Analysis is
subject to on-going and rapid changes in the market. It is a given fact that every
industry should give significance to economy and sustainable development
worldwide.
Candle is very important in the lives of people. This is one of the
emergency goods. Some users will utilize the candle holders that the company
will be offering. Based on the survey, there are 93.25% out of 400 respondents,
who are willing to buy the proposed product.
MEI’ ZCHIN Manufacturing Company belongs to the candle holders
industry because they produce different designs of tealight candle holders that
are made of wood. Based on the proponents’ survey, the customers are
interested to buy the product because of the uniqueness of its design. They are
willing to buy a product that has innovative uniqueness in its features and is
affordable at the same time. Mùzhì: Wooden Tealight Candle Holder will be
available to the buying public from the different malls like Bay City Mall, Nuciti
Mall and SM Batangas.
Barriers to Entry
Capital. It is an important element for every business to be established
and stable. The company needs a huge amount of money to put up the business.
Sources of capital are needed to support the growth and development of the
industry. The proposed business by the proponents requires a great amount of
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money for it to be established. The initial capital of the company is
PHP375,000.00 and the proponents will contribute PHP 187,500.00 each.
Raw Materials. Materials or substances used in the primary production or
manufacturing of goods. Raw materials are often referred to as commodities,
which are bought and sold in Batangas City.
Imitation of the Product. Aside from the competition, there are some
competitors, who will try to imitate the proposed product of the proponents.
Based on their survey, MEI’ ZCHIN Manufacturing Company’s product could be
easily imitated by the potential competitors. They can also produce the same
product that the company will offer to the customers.
Laws and Regulations. Regulatory policies affect the entry of firms into
the market, particularly, if the regulation warrants an incentive for higher profit to
would be participants. In starting the business, MEI’ ZCHIN Manufacturing
Company encountered some policies that they needed to comply with.
Product Contribution: Starting a business is difficult and complicated. It
is hard for the businessmen to convince retailers to buy their new products
because some retailers may doubt if the new product being offered to them will
be patronized by their usual clients. The company needs to exert extra effort to
find retailers, who can distribute their new product.
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Summary
To sum up, knowing the competitors is important for the company
because it is a way to identify the people they will compete with in the business
industry. In this study, the proponents will make sure that the products will be of
high quality, fashionable, develop top-of-mind and appeal towards potential
customers.
Identifying the competitors is one of the advantages of the company to
handle the business. The company must be able to think of strategies on how to
survive despite of the stiff competition in the market. In running a business, the
proponents must be acquainted with their specific target market. The proponents
believe that their target market has the capability to purchase their proposed
product.
The direct competitors of MEI’ ZCHIN Manufacturing Company are Wood
Candle Holder Manufacturer, Benzara Wood Candle Holders and Lois Creations
India. MEI’ ZCHIN Manufacturing Company aims to bring the unique tealight
candle holder in Batangas City and assures that “Mùzhì: Wooden Tealight
Candle Holder” will suit the tastes and preferences of the customers.
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MANAGEMENT PLAN
This chapter will discuss the organizational structure of the company.
Furthermore, this chapter is intended to discuss information about the
management team, recruitment program, compensation, training and
development, company policies and legal documentation.
Organizational Structure
The researchers will create an organizational structure to determine the
people, who will perform the daily business activities. It is important to have a
clear view of the organizational structure in order to understand how
management performs its functions and disseminate information necessary in the
operation of the business.
MEI’ ZCHIN Manufacturing Company will create a simple organizational
structure to distribute the duties and responsibilities properly to the company
team. One of the visions of the company is to have efficient team members and
one of the highlights of the company’s mission is to continually strive for
excellence by building and maintaining a team of professionally skilled and highly
motivated employees.
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GENERAL MANAGER
GRACELYN R. CASTILLO
BOOKKEEPER
OPERATIONS MANAGER
MELIZA N. BACAYO
CARPENTER 1 CARPENTER 2 PAINTER
Figure No. 1
MEI’ ZCHIN Manufacturing Company Organizational Chart
MEI’ ZCHIN Manufacturing Company created a simple organizational
chart including the General Manager, Operation Manager, Bookkeeper and the
three workers, which are the two carpenter and the painter.
Management Team
All business organizations should be made up of General and Operations
Managers, who possesses good human relation skills, so that the workforce will
be managed well.
Ms. Gracelyn Rosales Castillo will act as the General Manager. Since
MEI’ ZCHIN Manufacturing Company will be starting as a small organization, a
number of functions will be given to the Operations Manager. Plans, policies, as

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well as, finance, and inclusive budgeting, will be the responsibility of the General
Manager. She will also act as the Human Resource Manager, who will interview
applicants and orient newly-hired employees on the basics of the business
operations. The General Manager will oversee most of the entire firm’s marketing
and sales function, and other concerns in every aspect of the business. The
General Manager will handle the core competency of the business.
Furthermore, the General Manager should be knowledgeable in business
management. The General Manager should have the capacity to manage and
supervise the company staff and should be able to demonstrate ability of multi-
tasking in a fast-paced setting.
On the other hand, Ms. Meliza Neypes Bacayo will take the position as
the Operations Manager and will be in-charge of the marketing. The Operations
Manager will be the one, who will approve the promotion and advertising of the
company, and should have the ability to handle pressure and respond quickly to
critical situations. The designated Operations Manager is also a degree holder of
Bachelor of Science in Business Administration. The Operations Manager will
also serve as the General Manager’s assistant to make sure that the company
will achieve its goals and objectives. The Operations Manager will also supervise
the ability and competence of the employees, and will be responsible for
overseeing all the activities in the organization that will contribute to the
effectiveness of company services. Depending on the organizational structure,
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the exact nature of task that is classified under the operations function may differ
depending on the circumstances.
The Bookkeeper will be in a retainer basis and will be responsible for the
financial records. The Bookkeeper will be needed by the company every month
and will be compensated every month. The Bookkeeper will be responsible for
the recording and safekeeping of all financial transactions of the company,
inbound and outbound. He or she must be a BS Accountancy graduate and
should possess a good moral character, male or female, within the age range of
20-31 years old, and should be reliable and efficient in all accounting paper
works. Passing the CPA exam is an advantage.
The Company Workers
Workforce is one of the factors that sustain the existence of a business. It
is considered as the life-giving force of every business. Primarily without it, the
business cannot operate.
The MEI’ ZCHIN Manufacturing Company workforce consists of three
workers.
Carpenter. MEI’ ZCHIN Manufacturing Company employs 2 carpenters.
They should have the ability to know the best materials to be used in making the
products. They will be responsible in creating the product and they should have
the potential to make the product suitable to the customers’ needs. They should
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be professional woodcarvers and should have the experiences needed in the
wood manufacturing industry.
Painter. The Painter is the artist, who will paint, design and make the
product attractive. The Painter is also the one, who will think and decide on the
different unique designs, which will be approved by the Operations Manager. The
Painter must have the creativity and experience. He must also have an
experience in graphic arts and design and should know how to utilize technology.
The Painter is also the one, who will customize the products after the production.
Recruitment and Selection Process
MEI’ ZCHIN Manufacturing Company will determine the strength of their
personnel and identify additional needs to achieve the company’s goals.
According to Inigo, C. Jr (2010), the recruitment and selection process is
very important for a newly established business. Recruitment should be planned
carefully in order to attract the right type of applicants.
MEI’ ZCHIN Manufacturing Company will hire workers to meet the
production demand of their customers. The company will hire their workers in a
simple but effective procedure to attract a pool of potential employees for the job
to reduce the expenses of the company. Recruitment and selection is the main
body of staffing function, since it involves protection and performance of people.
The General Manager will be the one who will take the responsibilities of job
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hiring. She will be the one to set the job qualifications needed in the selection of
applicants and will make the final decision. The recruitment and selection
process is shown in Figure No. 2 below:
Preliminary Application Testing and In-depth

Screening Form Evaluation Interview
Physical Evaluating
Placements Examination References
Orientation
Figure No. 2
Recruitment and Selection Process of MEI’ ZCHIN Manufacturing Company
The first step in the assessment of an applicant for the job is initial
interview or preliminary screening. The applicant is required to fill out the
company’s official application form after passing the preliminary interview. Test
and evaluation are still the commonly used instruments for determining the
qualifications and talents of the applicant for a particular job. After passing all
tests required, the applicant is now ready to formally enter into the selection
process. References to be credible must be checked with utmost confidentiality.
The applicants undergo physical examination at the company clinic or an
authorized hospital to determine the physical fitness of the applicant for the job.
The applicants who clears all the hurdles is finally offered the job by placements.
Then the applicant is now formally introduced into the group and undergoes an
intensive orientation and induction program.
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Human Resource Policies
A company’s reputation is built only by the people in it. MEI’ ZCHIN
Manufacturing Company will build its own reputation through its employees.
What other people see, hear and think of a company is the sum of the personal
integrity of all the people in the company.
Human Resource policies are the formal rules and guidelines that
businesses put in place to hire, train, assess, and reward the members of the
workforce.
The applicants should bring their Barangay Clearance with no derogatory
record in their residence, Community Tax, NBI Clearance, Medical Certificate to
know if they are qualified for the position and assure that their health conditions
make them fit to work. They should also present their employment certificate
from their previous employment to check their attitude and behavior as a worker.
The workers to be hired should have knowledge and skills in woodcarving and
painting. They should have a sense of responsibility, and should have a good
moral character.
Compensation and Benefits
Compensation is important because it helps motivate workers to give their
best for the company’s success. The MEI’ ZCHIN Manufacturing Company
General Manager and Operations Manager will receive their salary every 15th
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and 30th day of the month. With respect to the accountant, who serves twice a
month, the compensation will be given at the middle and end of the month. The
workers also will receive their salaries at the middle and end of the month.
The company will abide to the prescribed minimum wage fixed by law
under the labor code of the Philippines. The enterprise will also give across the
board increase in wages for the workers as practice for employment policies. The
table shows the salaries of the personnel:
Table No. 3
Compensation Schedule
Position Daily Monthly Annually
General Manager 625.00 15,000.00 180,000.00
Operations Manager 562.50 13,500.00 162,000.00
Bookkeeper - 3,000.00 36,000.00
Carpenter 1 500.00 12,000.00 144,000.00
Carpenter 2 500.00 12,000.00 144,000.00
Painter 500.00 12,000.00 144,000.00
Total 16,187.50 67,500.00 810,000.00
The most valued people in the enterprise are the workers, who are
considered to be the top priority. Benefits are anything that are not covered by
regular salaries and wages. It is additional compensations that the employees
receive regularly at an interval stipulated in the company policies and guidelines.
MEI’ ZCHIN Manufacturing Company will also provide fringe benefits like
SSS, Pag-IBIG, Philhealth Insurance and ER. The company will give across the
board action in increasing wages to the workers so as to practice fair
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employment in business. Table No. 4 shows the Employer Contribution of the
MEI’ ZCHIN Manufacturing Company.
Table No. 4
Employer Contribution
2018 Worker Monthly Annual

1 2 3 Contribution Contribution
SSS 663.00 663.00 663.00 1,989.00 23,868.00

ER 10.00 10.00 10.00 30.00 360.00
Pag-IBIG 100.00 100.00 100.00 300.00 3,600.00
Philhealth 100.00 100.00 100.00 300.00 3,600.00
Total 873.00 873.00 873.00 2,619.00 30,828.00
Training and Development
Part of the business success is the training and development of its
employees because it will result to faster development of business, as well as,
the skill and abilities of employees for the accomplishment of the company’s
objectives and goals.
MEI’ ZCHIN Manufacturing Company will be conducting different seminars
about the trends that can be used in the production and operations. The said
training will show employees different styles that can help them to improve their
production. A training about uniqueness of designs will also be integrated so that
it can also be applied in doing their jobs.The employees will be provided with
trainings such as team building activities, wood carving activities, and painting
and designing activities. This training will help to increase their knowledge in the
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managing field, to make their leadership effective and systematic and to gain
some important techniques and skills in managing the business.
The General and Operations Managers will also attend different seminars
about new trends and unique designs to guide their workers. These procedures
should be accomplished by the company to provide good management and
maintain the quality of production. MEI’ ZCHIN Manufacturing Company will
conduct motivational activities like giving incentives and rewards for jobs well
done. With the said rewards, the workers will be motivated to perform their jobs
well.
Legal Documentation
MEI’ ZCHIN will be established as a private manufacturing company that
will be ready to comply with all necessary government legalities. The company
will provide its employees all the mandatory benefits as required by law such as
SSS, Phil Health and PAGIBIG benefits. The company will apply for registration
with the Bureau of Internal Revenue and will regularly pay the taxes collected by
the same.
Also, the necessary business permit to operate required by the city or
municipality, clearance from the Barangay, where it will operate, as well as, the
permit required by the Department of Trade and Industry will be obtained before
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the start of operations. MEI’ ZCHIN Manufacturing Company will definitely
comply with these requirements. Table No. 5 shows the Legal Requirements.
Table No. 5
Legal Requirements
Taxes and License 2018
BIR Registration 500.00
SEC Registration 500.00
Mayor's Permit 1,000.00
BMBE Registration Fee 1,400.00
Business Tax 90.00
Fire Inspection Fee 300.00
Sanitary Permit and Sanitary Inspection Fee 400.00
Environmental Protection Fee/Business 5,000.00
Inspection and Monitoring Fee 300.00
Taxes and Licenses Total 9,490.00
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Summary
To sum up, in establishing a business, it is important to have the right
persons for the right job to be competitive in the industry. This part of the study
includes the organizational structure of the company, which is composed of
General Manager, Operations Manager, two carpenter and a painter.
MEI’ ZCHIN Manufacturing Company will hire workers for different jobs to
apply effective procedures to attract potential employees for the job to reduce the
expenses of the company. The Manager will take the responsibilities and apply
the procedures of job hiring.
This chapter also includes the human resource policies. These also serve
to avoid misunderstanding and communication gaps between employers and
employees about their rights and obligations in the business.
Trainings and development programs are very important because they
enrich the capacity to increase productivity, ensure worker-employer relationship,
improve skills, and generally benefiting the company.
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MARKETING PLAN
Marketing is a process of techniques in promoting, selling and distributing
a product or service. This chapter presents the life blood of the business plan. It
also includes market research, demand analysis, historical and projected
demand, customer description and the supply analysis. This chapter further
shows the direct and indirect competitors of the company. The SWOT analysis of
the company is also mentioned as its strengths, weaknesses, opportunities and
threats.
Market Research
This section discusses how the researchers have chosen their target
market and it demonstrates how necessary and important are the pieces of
information that have been gathered from their target customers. A self-
constructed questionnaire has been utilized to collect primary market data.
Observation, interviews, and other obtrusive measures of data gathering have
also been undertaken. Data to be used are gathered from reliable sources to
better understand the market structure, consumer behavior, and industry
preferences.
The management team of MEI’ ZCHIN Manufacturing Company have
studied the flow of the product in the market. They have continually observed if
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the product will be able to survive in the market and have also decided what
strategies to apply.
Data Gathering Instrument
A survey questionnaire was prepared by the proponents to gather
pertinent data and information from their target consumers. It contains a set of
questions designed to get important facts. The survey questionnaire is divided
into three categories, namely: the respondent’s profile, the psychographic
matters, and the related product and service information. These categories will
determine if there is an existing business that is offering the same service or
product. The product information will detect if the respondents will be interested
with the product that the company is offering.
Statistical Treatment of Data
To determine the acceptability of the product in the market, the
proponents distributed a survey questionnaire within Batangas City, using the
sampling method. To find out the needed number regarding the acceptability of
the respondents and the target market, the proponents utilized the Slovin
Formula, with 5% marginal error. The formula is written as follows:
n= N/ (1 + Ne2)
= 329,874/ (1+ (329,874) (0.05)²)
= 399.52 or 400
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The figure 399,874 is the total number of population in Batangas City.
The data gathered on the total population of Batangas City was based from the
information given by the City Planning and Development Office at Batangas City
Government.
Demand Analysis
Demand analysis is a study of sales generated from goods or services to
determine the reasons for its success or failure. It also discusses how its sales
performance can be improved. These studies can also be used to help find ways
to increase the sales performance of these goods or services in the future.
The data gathered from the survey by the proponents was very useful in
this research work. Based on the result of the survey, 77.75 % of the
respondents said that they have not yet seen the Mùzhì: Wooden Tealight
Candle Holder, 93.25 % of the respondents said that they are willing and are able
to buy this kind of product.
Historical Demand
The historical demand is based on the data gathered from the consumer
survey questionnaire. The historical demand is computed by getting the
population or number of respondents multiplied by the average buying frequency
of wooden tealight candle holders. The table below shows the computed
historical demand for five years.
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Table No. 6
Historical Demand of MEI’ ZCHIN Manufacturing Company
Year Population of % of respondents who are Historical
Household willing to buy in the market Demand
2013 199,755 26.75% 53,434

2014 204,009 26.75% 54,572
2015 208,355 26.75% 55,735
2016 217,325 26.75% 58,134
2017 226,018 26.75% 60,459
Projected Demand
The projected demand indicates the quantity of a particular product that is
assumed to be bought by the consumers in the future. It is essentially to identify
the demand for the product in the future so that the company can come to a
decision on whether they will continue the business.
The researchers must determine if there will be a demand of the product
in the coming years. This will serve as a guide for managers to sight the possible
profits that will be earned by the company. Thus, the demand must be forecasted.
The table below shows the projected demand of the company after five
years of being established. It is projected that there will be an increasing
demand every year.
Table No. 7
Projected Demand MEI’ ZCHIN Manufacturing Company
Year Population of % of respondents who are Projected
Household willing to buy Demand
2019 231,398 93.25% 215,779
2020 236,327 93.25% 220,375
2021 241,361 93.25% 225,069
2022 247,577 93.25% 230,886
2023 252,529 93.25% 235,483
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Supply Analysis
The researcher should be able to determine the supply of the product in
order to penetrate the market; whether there is an increase in the supply. It refers
to the amount of goods or services that a firm or producer is willing and able to
offer for sale.
MEI’ ZCHIN Manufacturing Company should study and analyze the moves
of its competitors, whether they are big or small companies. This will create an
advantage for the company. This will also help them to come up with strategies
to attract consumers. Through this process, the proponents will be able to have a
better idea on how they will be introducing their product in the market. With this,
they will be able to apply the best strategies on how to sell their products. It also
influences decisions in terms of production and the quantity of products to be
supplied in the market. Other problems that will be encountered with regards to
the product should also be taken into consideration.
Market Share
An increasing market share can be a sign of the relative competitiveness
of the company products or services. As a product or service grows and is
sustained in the market, its revenues also increase at the same rate of the total
market share. A company that develops its market share will be growing its
revenues faster than its competitors.
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This is the percentage of market accounted for by a specific entity. The
market share of the company projected from year 2019 until the year 2023 is
shown in the table below:
Table No. 8
Market Share
Year Projected Demand Sales Volume Market Share
2019 231,398 17,280 8.16%
2020 236,327 25,920 11.99%
2021 241,361 31,227 14.14%
2022 247,577 35,510 15.68%
2023 252,529 39,504 17.10%
Customer Description
To be able to have an understanding of the market, the proponents will
have to know their potential customers. They will be the primary sources of data
and information that will equip them in its entry to the market. In identifying the
business target, the market is important because the profitability of the business
depends in the ability of the target market to purchase the product and service
offered.
According to the result of our survey, 400 of the respondents are married.
A percentage of 58.50 are 33 years old and above. As to their educational level,
70% of our target market are college graduates and have a family monthly
income ranging from PHP15,000.00-PHP20,000.00. The respondents are all
from Batangas City.
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Customer Demographic. The proponents surveyed 400 female
respondents from the different areas in Batangas City. According to the survey
results, females 33 years old and above and have a family monthly income of
PHP15,000.00-PHP20,000.00 are the MEI’ ZCHIN Manufacturing Company
target market because they have the capability and willingness to buy their
product.
Customer Geographic. It is a common strategy wherein the proponents
serve customers in particular areas predominantly. It is when the target
customers have different preferences based on their location. The target
customers of the company are females, who live in Batangas City. There is an
ease in accessibility to malls, department stores and basically, in the city market.
A large portion of the company products will be distributed among retail stores
within Batangas City.
Customer Psychographic. The proponents conducted a psychographic
research to the target market through the use of survey questionnaires. Based on
the result, the buying behavior of the company’s target market, who are females
age 33 and above, and college graduates are capable of buying Mùzhì: Wooden
Tealight Candle Holder. They look into the design, quality and function of the
product. They have their own preferences on the product designs. Most of them
liked the Letters, Numbers and Shapes Designs, Landscape Paint Designs and
Quotations Designs.
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Market Segmentation
Market segmentation enables a company to develop a positioning and
marketing mix strategy that can satisfy a smaller, more focused range of
customer’s needs and wants, given the identified opportunity. The proponents
have segmented their market in terms of gender, status, age, monthly income
and their willingness and ability to purchase the products to be offered by MEI’
ZCHIN Manufacturing Company.
The proponents have segmented the age level of their market, which is
from 18 years old and above. They have chosen this age level because these
ages usually have the capacity to purchase a product. A major main focus of the
company is to target those, who are earning a monthly family income of
PHP15,000 and above. The monthly income is one of the determinants as to
who the customers will be and also to find out their willingness and ability to
purchase certain products. Most customers check first their capability of buying
the products.
Market Size and Growth Trends
Knowing the market size of the industry is very important in business. It is
crucial to know exactly who the target market is and how the company is going to
meet its target market needs. It is important for the company to be able to study
and forecast the demand and make the necessary plans, strategies and
decisions to supply what this target market needs.
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The proponents assumed that there is a growing trend in the demand for
the product of the company. The demand is positively related to the increasing
number of population. In this instance, it shows that there is a growing trend for
the product that MEI’ ZCHIN Manufacturing Company will be offering. Another is
the increasing number of people being employed. Being employed may increase
the purchasing power of the target market.
SWOT Analysis
Its key purpose is to identify the strategies that will create a specific
business model that will align the organization’s resources and capabilities to the
requirements of the environment in which the firm operates.
Strength
Strengths are those features of the business which allows the latter to
operate more effectively than the competitors. The firm needs to consider the
strengths from its own point of view and of the customers and clients.
The strength of MEI’ ZCHIN Manufacturing Company is their product
quality, which is an an advantage. The products are more attracting on the eyes
of their customers. The following are the strengths of MEI’ ZCHIN Manufacturing
Company.
Raw Materials. Choosing good materials is one of the strengths of MEI’
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ZCHIN Manufacturing Company. The company will use a high class but a
cheaper priced wood called Palochina. In designing the product, the company
also uses a high-ended, quick dry but cheaper paint so that production will be
more convenient, durable, and less likely to get damaged. The proponents
decided to use such materials to ensure the good quality of the product.
Brand Name. Brand is one of our strengths. MEI’ ZCHIN Manufacturing
Company created a unique brand name to introduce its product in the market.
The Mùzhì: Wooden Tealight Candle Holder, the brand name of the company.
Mùzhì comes from the chinese word which means “wooden”. It is a type of
tealight candle holder made with palochina wood. The MEI’ ZCHIN
Manufacturing Company brand name will be easily recalled and remembered by
the customers.
Management and Workers. MEI’ ZCHIN Manufacturing Company is
comprised of 2 workers, managed by Ms. Gracelyn Rosales Castillo and Ms.
Meliza Neypes Bacayo. Employees which will be hired by this management will
be critically and carefully selected by the owners to be able to help them reach its
quota and eventually attain stability in the market.
Supplier Partnership. The MEI’ ZCHIN Manufacturing Company strong
relationship with the suppliers is one of its strength. Loyalty to suppliers can be a
strong foundation and can lead to a consistent production process. The MEI’
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ZCHIN Manufacturing Company suppliers are New Antonio’s Trading for tools
and equipment, and the New Eman’s Trading for the tealight candles supply.
Location of the Business. Choosing the right location of the company is
also a factor in attaining success. MEI’ ZCHIN Manufacturing Company will be
located in Barangay 10, D. Silang Street Batangas City. Delivery and
transportation expenses will be reduced. The proponents have chosen this
location because it is along the highway and accessible to all modes of
transportation in the city. It is also near the malls, where the products will be
consigned to such places like Bay City Mall, Nuciti Central Mall and SM City
Batangas.
Weaknesses
Weaknesses are the drawbacks that hinder an organization in executing
strategies in pursuit of success (Kinicki,2007). It is also the weak points of the
company. It deals with the internal environment that can affect the business. This
hinders them from achieving their set goals and objectives.
These are possible weaknesses that affect the MEL’ ZCHIN Manufacturing
Company:
Lack of Marketing Expertise. MEI’ ZCHIN Manufacturing Company will
be new in the business industry, it will therefore lack the experience necessary to
take the business to its consistent profitability. Marketing knowledge gained from
36
school might not be enough to apply in the business industry. In relation to the
lack of marketing expertise, lack of consumer awareness may also apply
because the company will just be a new entrant unlike the other competitors who
have already established a brand.
Lack of Funding. Capital is one of the things that should be considered.
MEI’ ZCHIN Manufacturing Company is categorized as a partnership business
owned by two persons. Since the proponents are fresh graduates, they do not
have properties or large amount of assets that can be used as collateral for their
business. This hinders the company to increase production. The only choice of
the proponents is to use their savings and borrowed money.
Lack of Adequate Skills/Knowledge. As fresh graduates, and still
young at age, the proponents lack the experience in managing the business. This
may serve as one of the weaknesses of the firm. They do not have enough ideas
in facing the new world of business. They have to search or gain more
information that will sustain their skills and knowledge in the business industry.
They will encounter problems that are new to their perception. But through
training and development, they will be able to overcome all these weaknesses.
Company Not Recognized. Being a new small striving company, MEI’
ZCHIN Manufacturing Company will probably experience the trials and obstacles
for Mùzhì: Wooden Tealight Candle Holder to be sold in the market. Consumers
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are very hesitant to try new brands, since they already have their own choices of
brands. Since the tealight candle holders is new and not yet famous, the
customers will tend to be hesitant in trying the new product in the market. The
company will then have to keep trying to improve their product to be at par with
its competitors.
Strong Competitors. Considering a large number of competitors like
Liwanag, Delta Brands Inc., and Eton Art Candle OYC Candle, it will be hard for
the new entrant in the industry like MEI’ ZCHIN Manufacturing Company to
compete with those already existing in the market with known brands because
customers are already used in patronizing the products offered by those
establishments. But despite of this, the company will make sure that they will
use a comprehensive marketing strategy to encourage the customers to buy their
products.
Opportunities
Opportunities are presented by the favorable advantageous circumstance.
These arise when an organization can take benefit of conditions in its
environment to plan and execute strategies that enable it to become more
profitable. Organizations can increase competitive advantage by creating
opportunities.
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Improvements in the Economy. There are still things that can contribute
to the improvement of the economy such as paying taxes with advertisements on
both television and newspaper and other promotional ways. And when there are
jobs offered, it only shows that the economy is improving. MEI’ ZCHIN
Manufacturing Company will not only introduce the Mùzhì: Wooden Tealight
Candle Holder but will also introduce the tealight candle, which people usually
buy as needed. By doing so, the company will also be able to help the other
companies to grow. This is an opportunity to build the relationship between the
MEI’ ZCHIN Manufacturing Company and the supplier.
New Ideas. Filipino people are very fond with new things that they see,
hear and touch. With the advent of technology, people tend to adapt with the
changes and innovations it has to offer. Mùzhì: Wooden Tealight Candle Holder
is developed and designed to be user friendly. MEI’ ZCHIN Manufacturing
Company is proud to be a Filipino by introducing an innovative, useful, and
unique product in the market.
Creating a business. This is the opportunity, where investors help new
businesses just like the establishment of MEI’ ZCHIN Manufacturing Company.
Many investors are willing to invest in newly-established businesses to help them
expand and develop. They can expand their connections to companies or can
just help their relatives, friends or high personalities, who are willing to invest.
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Consumers’ Tastes and Preferences. A new product always catches
the attention of the market. Consumer’s tastes and preferences create the
demand for a particular product. Since Mùzhì:Wooden Tealight Candle Holder is
new in the market, consumers will try using it. The MEI’ ZCHIN Manufacturing
Company product may get the attention of the buyers because it has beautiful
and unique designs, which will surely suit the consumers’ tastes and preferences.
Expanding Customer Base. As the businesses have target areas to
serve, it has the ability to produce something new with the products based on
customers preferences. MEI’ ZCHIN Manufacturing Company will consider
expansion of the business as an opportunity by putting up other branches. Thus,
it will help them to bring their product closer to their clients and will easily reach
every customer nationwide. Expansion will help the company in achieving better
recognition in the market.
Threats
Threats arise when conditions in external environment jeopardize the
reliability and profitability of the organization’s business. The threats include the
unfavorable situation in an organization’s environment that is potentially negative
in its ability to compete. Threats are uncontrollable and when they arise the
stability and survival of the business will be at stake.
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Large Numbers of Competitors. MEI’ ZCHIN Manufacturing Company
has many competitors. Given that competitors are established enough in this
field , there is a tendency that customers would stick to buying products from
them. Existing competitors can easily block new entrants, especially when these
competitors have already earned customer loyalty.
Financial Credit and Pressure. In the operation of a business, financial
matters are important factors. The company may experience financial in
capabilities as the business is introduced in the market. They will be experiencing
low rate funds since they are just a newly established company. They have to
search or think of the best way to overcome these threats so that it will not affect
the company. To prevent these threats, MEI’ ZCHIN Manufacturing Company will
make sure that it will have sufficient funds to continue the production. They will
continue to look for more funds or investors that will help the company to survive.
Ease to Imitate the Product. In this high-technology world, people could
easily imitate newly introduced products in the market. That is why the company
should always be ready to face and counter this kind of predicament. MEI’
ZCHIN Manufacturing Company will have to introduce more different and unique
styles and designs that cannot be easily imitated by other companies. Mùzhì:
Wooden Tealight Candle Holder is new in the market and definitely has a
different and unique style unlike the other tealight candle holders in the market,
which are made of glass, metal and ceramics. Furthermore, the product of the
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company is distinguished from the others since it emphasizes the high quality
materials used, its features and its attributes.
Increasing Price of Raw Materials. Good quality of materials can provide
good quality of products. Increasing materials cost affects the pricing of the
product. Though there is an increase of raw materials, MEI’ ZCHIN
Manufacturing Company will make sure that it will not affect the quality of the
product. It is ensured that even if the price of the raw materials will increase, the
price of the product will not be affected. The company will also make sure that
good connection with the raw materials’ supplier will be established, which will
eventually lead to a better product price management.
Substitute Product. This is a threat to MEI’ ZCHIN Manufacturing
Company because it would cause permanent injury with its illegitimate brand
name, not only in terms of lost revenues, but also in terms of its image
associated with substandard products.
Marketing Strategies
In business, marketing strategy is one of the crucial things to be done
appropriately and necessitates a lot of understanding with the 4p’s (product, price,
place, promotion) of the business. A high quality top performing product, sold at
a reasonable and affordable price, located at an accessible place, backed up by
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an intensive promotion, spell marketing success.
Product
The product is the main feature of every manufacturing firm. It is
something offered to the market to get attention and acceptance. A product does
not only constitute its physical characteristics. It also includes the branding and
packing plus its benefits. A product purchased should be enough to satisfy its
customers.
MEI’ ZCHIN Manufacturing Company has proposed a product with the
brand name Mùzhì: Wooden Tealight Candle Holder. The said product will easily
attract the interest of the buyers because of its quality, functionality and design.
Mùzhì: Wooden Tealight Candle Holder can be considered as one of the
company’s marketing strategy itself, because it is new in the market and it has
very unique product designs. As part of marketing strategy, the proponents has
given a high value on its packaging to make their product more appealing. A
good brand name captures the attention of the customers, and it sticks and
retains in their minds. A brand should be trustworthy, dependable and reliable.
Price
There are important factors to consider in giving or deciding a price to a
certain product. These include the cost of packaging and the materials used in
the production process such as the payment for labor, rent and the utilities that
43
are required in manufacturing the product. Analyzing the opinions of consumers
about product pricing is also important as it indicates how they value what they
are looking for, as well as, what they want to pay for. Product related cost and
competitors’ pricing should be considered in deciding a selling price.
MEI’ ZCHIN Manufacturing Company’s product will be sold in the malls.
The product will be available at SM Batangas, City Bay Mall and Nuciti. It will be
sold at PHP130.00. The given price will surely attract the consumers. They will
have a mind set that they can afford buying this as a gift item or for personal use.
To give value to customers, who will avail the product, MEI’ ZCHIN
Manufacturing Company will offer a 10% discount on its anniversary.
Place
This refers to the distribution channel of the product. Choosing the right
location of a business has a great impact to attract target customers. In
establishing a business, location is well decided because the location greatly
affects the operation of the business. The location should be very accessible and
should be located near the residences of the buying public. The manufacturing
and office site of MEI’ ZCHIN Manufacturing Company will be located at
Barangay 10, D. Silang Street Batangas City and will distribute its products on
the malls such as SM Batangas City, City Bay Mall and Nuciti. The
manufacturing and office site will be very accessible to the customers. The place
was chosen because it is well-known to the public, a go-to-go shopping mall and
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is accessible to transportation. The products will be delivered once or twice a
month depending on the availability and demand of the product in the malls.
Having a simple channel of distribution will also help the company to avoid
complications in delivering the products to the retailers and target consumers.
Manufacturing
Distribution Outlet
End-Consumers
Figure No. 3
Distribution Channel MEI’ ZCHIN Manufacturing Company
Promotional Strategies and Sales Program
Promotion is one of the basic factors that a company, especially those that
are new entrants in the industry, must emphasize in its first year of operation.
MEI’ ZCHIN Manufacturing Company will use a combination of methods, based
on individual needs and circumstances. Promotion reminds consumers to
regularly buy a product. Since the target market has already been identified, the
proponents already have a good idea on the best way to reach the clients.
45
MEI’ ZCHIN Manufacturing Company believes that through this, they will
be able to gain credibility and may inspire others to spread the word about the
business. A selling strategy of person to person communication between the
buyer and the seller will also be applied. A 10% discount during MEI’ ZCHIN
Manufacturing Company anniversary will be given to customers as a promotion
together with a free tealight candle. The proponents will provide advertisement
through social media such as Facebook and Instagram. The proponents believe
that social media, aside from the benefit of using it free, is one of the most
effective ways of introducing and promoting the company, especially the products.
The email address of the company will be printed in fliers as part of the company
promotion.
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Summary
To sum up, marketing plan is a written document that describes a
company’s advertising and marketing efforts for the future. It includes a
statement of the marketing situation, a discussion of target markets and
company positioning and a description of the marketing mix a company intends
to use to reach its marketing goals. The purpose of a marketing plan is to clearly
show the steps or actions that will be taken to achieve the planned goals.
It also indicates the market research, sampling procedures, demand
analysis, historical demand, customer description, market segmentation, market
size and growth trends, supply analysis, historical supply, projected supply,
market gap, market share, SWOT analysis, marketing strategies and customer
service. It shows how the marketing plan is conducted and specifies the
company’s work thoroughly. It is written how the Mùzhì: Wooden Tealight
Candle Holder will be bought by the customers from the market. It also shows the
different strategies on how the company’s production will be sustained for years.
The marketing plan has a big impact in running a business. MEI’ ZCHIN
Manufacturing Company will have to know exactly the written contents of the
marketing plan. It will help the proponents in their production and in their
promotion, which will be continuous to run the business.
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TECHNICAL PLAN
In this part of the study, the researchers have discussed the important
factors involved in the technicality of the product. This study precisely aims to
determine the processes and procedures in the manufacturing of the product,
appropriate handling-over and typical tools and raw materials.
Technical Description of the Product
Mùzhì: Wooden Tealight Candle Holder is made of a kind of wood,
Palochina. This kind of wood gives the product durability. Based on research,
this wood is proven to be strong and durable. Products are available in different
designs. Each candle holder is designed to create motivation and inspiration.
Product Uses and Uniqueness
Mùzhì: Wooden Tealight Candle Holder is a product that is made of
Palochina wood. Palochina is a type of wood that could also be used to make
pieces of furniture that are essentially used in houses. The product is an
innovation from the common candle holder that exists in the market. Its durability
and quality is something that will distinguish the product from the similar ones. It
is a tealight candle holder that has different styles and designs. The measures of
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Mùzhì: Wooden Tealight Candle Holder are 3 inch width, 3.5 inch length and
0.25 lbs kilogram for its weight.
Daily Production Operation and Process Flow
This is the graphical representation showing the daily processes of
manufacturing the product including break time. To ensure quality, efficiency and
effectiveness to operations, consistent monitoring and control will be
implemented and immediate actions will be done to address problems.
The business will be operating eight hours a day and six days a week. In
the manufacturing process, employees will be working from 8:00 am until 12:00
noon and from 1:00 pm until 5:00 pm. There will be a 15 minutes break, both in
the morning and afternoon. Lunch break will be 1 hour. The business firm will
hire three qualified workers that can perform the production process.
MEI’ ZCHIN Manufacturing Company has established its process flow of
manufacturing of Mùzhì: Wooden Tealight Candle Holder products as shown in
the succeeding figures.
Legend:
- Operation - Delay
- Transportation - Storage
- Inspection
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Process Flow Chart

Carpenter 1 Carpenter 2 Painter
Preparation of materials and

tools
8:00-8:10 (10 mins)
Cutting the wood & Design & Curving the letter Mixing the Paint to make
assembled it. 8:11-9:30 (1hr & 30mins) the paint easily to paint.
8:11-8:50 (30 min s) 8:11-8:50 (30 mins
Cutting the wood by

blocks Paint the Letter one by
8:51-9:30 (40 mins) one
8:51-9:30 (40 mins)
Break Time
9:31-9:45 (15 mins)
Drilling the blocks one by Design & Curving the letter Paint the Letter by blocks
one. 9:45-12:00 9:45-12:00
9:45-10:15 (30 mins) (2hr & 40mins) (2hr & 40mins)
Lunch Break Clean the Production Area

12:00-12:45 (15 mins) (6s)
12:45-1:00 (15 mins)
Drilling the blocks one by Paint the blocks one by Paint the blocks one by
one. one one
1:01-3:40 (2hr & 40mins) 1:01-3:40 (2hr & 40mins) 1:01-3:40 (2hr & 40mins
Put secured area in the products.

3:46-4:00 (15 mins)
Packing & Storage Clean the Production Area(6s)

4:01-4:45 (45 mins) 4:46-5:00 (15 mins)
Figure No. 4
Daily Production of MEI’ ZCHIN Manufacturing Company
(60 pieces of Mùzhì: Wooden Tealight Candle Holder)
( see Appendices E on pp.109-112 )
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Direct Labor Requirements
Direct labor includes all works performed on the product that can be
conveniently and economically traced to the end product. Workers are key
factors on how a company can succeed in the industry. By the hands of the
workers, the company can ensure the quality and the good result of the process.
MEI’ ZCHIN Manufacturing Company will need three workers. The compensation
for a carpenter will be Php 500.00 and for the painter will be PHP500.00 a day.
This will compose the company’s direct labor cost.
Production Schedule
This is the graphical representation of the daily process inside the
organization. The table below shows the working days and the production of MEI’
ZCHIN Manufacturing Company.
Table No. 9
Working Days
Working days Days
Working days per week 6
Working days per month 24
Working days per year 288
Less regular holiday (10)
Total working days for a year 278 days
Table No. 9 shows the working schedules in the company and the total
working days of 278. MEI’ ZCHIN Manufacturing Company will have working
hours of eight per day, six days a week and two hundred seventy eight per year.
51
Tools and Equipment
These are materials of value which the organization has bought and will
use for an extended period of time. Fixed assets normally include items like office
furniture, fixtures and fittings, equipment, computers, and plant and machinery.
The company have chosen the New Antonio’s Trading as supplier.
To make the manufacturing operation effective, the company should
acquire tools and equipment needed in the production operation.
Table No. 10
Tool and Equipment
Particulars Amount Quantity Yearly Amount
Cutter Machine 8,000.00 2 pcs 16,000.00
Total Amount 16,000.00
Factory Tools and Supplies
Tools and supplies do not have permanent connection to the structure of
the company’s building and utilities, but yet they are assets of the business. The
company wants to give a more convenient and more comfortable shopping place
for their customers, thus, the proponents have chosen elegant and durable
pieces of furniture to be utilized in the store and in the manufacturing site.
Factory tools and supplies are expected necessity of the company for five
years. But definitely, the replacement to more convenient ones depend on the
company’s financial performance. The company will need to purchase a swivel
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chair and air conditioning units for the office and the working area and will
provide workers with more convenient chairs after five years.
Table No. 11
Factory Tools & Supplies
Clamp 299.75 2 pcs 599.50
Drill Press 3,499.75 2 set 6,999.50
Dust mask 15.00 48 pcs 720.00
Grinder 2,200.00 2 set 4,400.00
Meter 75.00 2 pcs 150.00
Pand Sandder 22.00 72 pcs 1,584.00
Pencil 63.00 1 box 63.00
Office and Miscellaneous Supplies

The following supplies will be bought for the purpose of recording the
company’s daily activities. Office supplies are the generic term that refers to all
supplies, which are regularly used in offices by businesses and other
organizations. Formosa is one of the supplier for office supplies.
These materials are used in the main office of the company, in which all
the transactions are recorded in written documents. Supplies may vary in the
consumption of the company within a year.
Table No. 12
Office Tool and Equipment
Ceiling Fan 800.00 2 pcs 1,600.00
Working Table 1,500.00 3 pcs 4,500.00
Working Chair 600.00 3 pcs 1,800.00
Computer set 9,000.00 1 set 9,000.00
Ceiling Fan 800.00 2 pcs 1,600.00
Office Table 1,500.00 2 pcs 3,000.00
Swivel Chair 1,500.00 2 pcs 3,000.00
Filling Cabinet 1,800.00 1 pcs 1,800.00
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Table No. 13
Office Supplies
Ballpen 45.00 1 b0x 45.00
Bondpaper Long 148.00 2 ream 296.00
Bondpaper Short 125.00 2 ream 250.00
Calculator 300.00 1 pcs 300.00
Daily Time Record 18.00 100 pcs 1,800.00
Envelope 1.75 50 pcs 87.50
Fastener 25.00 2 box 50.00
Folders 3.75 50 pcs 187.75
Log Book 70.00 2 pcs 140.00
Marker 30.00 2 pcs 60.00
Paper clip 8.00 2 box 16.00
Pencil 63.00 1 box 63.00
Puncher 40.00 1 pcs 40.00
Receipt 6.00 3 booklet 18.00
Scissor (big) 100.00 2 pcs 200.00
Staple wire 6.00 2 box 12.00
Stapler 30.00 2 pcs 60.00
Alcohol 150.00 4 pcs 600.00
Tape 18.00 3 pcs 54.00
Table No. 14
Maintenance Expenses
Broom 80.00 2 pcs 160.00
Doormat 35.00 12 pcs 420.00
Dustpan 35.00 2 pcs 70.00
Fire Extinguisher 1,499.75 1 pcs 1,499.75
First Aid Kit 150.00 2 set 300.00
Floor Mop 150.00 2 set 300.00
Garbage Bag Large 240.00 1 pack 240.00
Garbage Bag Small 120.00 1 pack 120.00
Pail 45.00 2 pcs 90.00
Rag 2.00 48 pcs 96.00
Soap 35.00 24 pcs 840.00
Trash Can 40.00 2 pcs 80.00
Wall Clock 250.00 2 pcs 500.00
54
Utilities
For the company to operate more conveniently, utilities to be used are
identified. The business would use electricity, water, telephone and internet daily.
The electricity is to be used for different equipment in the manufacturing site, for
lights, for air conditioning, etc. Utilities would also include water to be provided by
BCWD, and communication provided by PLDT My DSL.
Table No. 15
Utilities
Particulars Monthly Yearly Amount Provider
Electricity 1,071.43 12,857.16 Meralco
Net & Telephone 891.96 10,703.52 Water District
Water 200.00 2,400.00 PLDT Landline
Total Amount 2,163.39 25,960.68
Waste Disposal and Environmental Impact of the Product
The proponents believe that “Cleanliness is next to Godliness”. So, to
have good sanitation in the area, waste materials will be placed in garbage bags
and it will be segregated. These will be collected by the garbage collectors of the
locality. Our company joined the program on caring about our environment. After
the operation, we will be segregating the waste disposals in their proper garbage.
Some will be sold in the junk shop, the wood waste can be used as firewood.
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Summary
In this chapter, MEI’ ZCHIN Manufacturing Company have created a
technical plan before the Mùzhì: Wooden Tealight Candle Holder will be
produced. First, they have studied the important parts and processes of
production before starting the work. Included in this chapter is the technical
description of the product and the raw materials used to produce it. The scope
and details that are covered are important and very accurate on how to operate
and manage the production process in the company. The proponents have
provided the production schedule of the company. The process, equipment and
direct labor should be balanced and calculated. The utilities and waste disposal
will also be managed in the technical aspect of the business. Technicalities of the
business and its products should provide for the company’s growth and
development.
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FINANCIAL PLAN
Capital is known to be the lifeblood of every business. This makes the
company operation possible. Gathering funds and proper budgeting are
important to maintain the flow of operation. The partners will invest capital to the
firm. The invested money will be used to sustain the continuous operation and
production.
On the other hand, the income and expenses of the company also need
proper utilization. These factors should help improve the growth of the business.
Initial Capital Requirement
An accumulated amount of PHP375,000.00 will be needed in order to start
the business operation. This will cover all the necessary costs from the business
transactions and operations. The amount will be from the combined contribution
of the partners. The table below shows the contributed capital of each partner to
start the business.
Table No. 16
Initial Capital Requirement
NAME OF THE PARTNERS CONTRIBUTION
Gracelyn R. Castillo 187,500.00
Meliza N. Bacayo 187,500.00
Total 375,000.00
The initial capital will cover the projected cost. The amount in excess of
the total projected cost will be utilized as cash on hand of the company.
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Sources of Financing
There is a lot of financing intermediaries that can help every business to
start its operation. The contribution of the partners of PHP375,000.00 to be able
to finance the business will be from personal savings, loans from relatives and
selling personal assets. The partners will contribute the amount of
PHP187,500.00 each to come up with the total needed amount of capital which is
PHP375,000.00 to start the business operation.
Total Project Cost
The cost of the project is derived from the sum of total fixed assets, which
are fixed investments plus the pre-production capital cost, the pre-operating
expenses, which includes fees and licences, and the net working capital, which
includes the cost of raw materials and other expenses. Determination of the total
project cost would help the partners to settle on a certain amount of capital
necessary for the proper funding of the business. The table below shows the total
project cost of the proposed business projected for a one month operation.
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Table No. 17
Total Project Costs
MEI’ ZCHIN Manufacturing Company ( Six Months Projection)
Particulars Amount
Fixed Assets
Office Equipment 9,000.00
Office Furniture & Fixtures 9,400.00
Office Supplies 4,279.25
Factory Equipment 16,000.00
Factory Furniture & Fixtures 7,900.00
Factory Tools and Supplies 14,516.00
Total Fixed Assets Requirements 61,095.25
Working Capital for Three Months
Direct Materials 49,950.00
Labor 104,250.00
Indirect Materials 23,100.00
Prepaid Rent Factory 9,000.00
Utilities Expense Factory 2,081.94
Maintenance Expense - Factory 707.36

Other Expense:
SSS Contribution 5,967.00
Philhealth Contribution 900.00
EC 90.00
Maintenance Expense - Office 471.58
Taxes and Licenses 9,490.00
Salary Bookkeeper 9,000.00
Total Working Capital Requirements 215,007.88
Pre-Operating Expenses
Advertising Expense 2,500.00
Utilities Expense Office 1,387.96
Consignment Expense 60,017.33
Prepaid Rent Office 6,000.00
Total Pre-Operating Requirements 69,905.29
Cash Requirements 346,008.42
Cash Contingencies 28,991.58
Total Project Costs 375,000.00
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Financial Assumptions
The following assumptions were used by the proponents in the
computation and analysis of the financial capacity and stability of the firm:
1. Initial Capital Requirement
The business has an initial capital of PHP375,000 which will be
contributed by the partners in equal amount.
2. Working Days
There will be six (6) working days in a week, an average of twenty
four (24) days in a month and two hundred seventy-eight (278) days in a
year excluding the legal holidays (10) days.
3. Accounting Reporting Period
A fiscal year of business would be implemented.
4. Production Capacity
The firm will produce 17,280 on the first year of its operation.
Production capacity is expected to increase by 10% starting from the
second year and to the succeeding years.
5. Purchases:
a. The volume of purchases (direct and indirect materials) would
increase proportionately with increase in the quantity produced.
Costs of purchases are assumed to increase by 2.68% based on
average inflation rate.
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b. Purchase discounts shall be taken up at the start of the operations.
It shall be taken up at a rate of 2%.
c. Purchases of raw materials will be 70% cash and 30% on account.
d. Freight in will be 1% of gross direct material purchases.
e. Purchases of indirect materials will be on cash basis.
6. Sales:
a. The initial selling price per pack of the product is PHP120.00 for
retailers. Increase in the selling price is brought by many factors
such as production increase and average of 2.68% per year based
on the average inflation rate of 2016 (BSP Website)
b. Cash sales will be equivalent to 70% of gross sales and credit sales
would be 30% of the gross sales.
c. Sales discount will be to 2% of cash sales and sales return and
allowances will be equivalent to 1% of total gross sales.
d. Collection of credit sales is 90% annually and accounts receivable
will be equivalent to 10% of the credit sales. Provision for doubtful
accounts would be 2% of the outstanding receivable, there will be
no write-off of accounts receivable.
7. Inventory:
a. The FIFO method would be used in valuing the inventory.
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b. Direct materials inventory end is 10% of the net direct materials
purchases of the current year, direct materials used are 90% of net
direct materials purchased.
c. There will be no work-in process inventory.
d. Finished goods ending inventory is 40% of the current month’s total
goods available for sale.
8. Labor:
a. An increase of 5% on wages every year will be granted to every
worker.
b. Labor rate for the workers is PHP8,568.00 per month and is
assumed.
c. The employees will be paid on the 15th and 30th of each month.
9. Employee Benefits
SSS, PhilHealth, Pag-IBIG and Fringe benefits of the workers are
part of the manufacturing expenses.
10. Utilities
Utility expenses are assumed to increase by 10%, except for
telecommunication, which is expected to increase by the inflation rate;
60% of electricity and water will be applied to the factory and 40% will be
applied to administrative expenses while telecommunication will be treated
purely as administrative expense.
11. Rent Expense:

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a. Rent expense is assumed to be PHP5,000.00 per month and
expected to increase by PHP500.00 annually.
b. Rent expense would be allocated to factory and office in the ratio
60:40 respectively.
12. Consignment Expense
a. Consignment expense is assumed to be PHP16,000.00 per month
and expected to increase by PHP1,000.00 annually.
13. Maintenance Expense:
a. Maintenance expense increase is based on the average inflation
rate of 2.68%.
b. Maintenance expense would be allocated to factory and office
according to the land each occupies (60%-factory, 40%-office).
14. Property, Plant and Equipment:
a. Acquisition of equipment, furniture and fixtures will be on cash
basis. No additional machinery would be purchased for the first five
years of operation.
b. The firm will use the straight line method of depreciation with no
residual value.
15. Advertising Expense
Advertising expense from 2018-2022 will have a yearly increase of
2.68% based on the average inflation rate.
16. Partnership Equity:

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a. All partners are allowed to withdraw 10% of their capital at the end
of each fiscal year. A bonus of 5% is granted to the general
manager; both partners will also receive their salaries. This salary
is treated as part of income allocation and not as salary expense
which is deductible to the net income.
b. Withdrawal is always allowed if the result of the operation is
favorable.
c. Remaining profits are shared equally by the partners in accordance
with the agreement of the partners as stipulated in the contract.
17. Inflation Rate
Inflation rate is peg at an average rate of 2.68% per year based on
the average inflation rate for 2016 BSP website.
Financial Statements
Financial statements and their accompanying notes contain a wealth of
useful information regarding the financial position of a company, the success of
its operations, the policies and strategies of management, and insight into its
future performance.
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Statement of Comprehensive Income
The statement of comprehensive income is a summary showing the
performance of the enterprise for a given period of time. It summarizes the
revenues earned and expenses incurred for that period of time.
Table No. 18
MEI' ZCHIN MANUFACTURING COMPANY
Projected Statement of Financial Performance
For the year ended December 31, 2018-2022
2018 2019 2020 2021 2022
Net Sales 1,175,565.60 1,732,488.93 2,020,568.56 2,224,532.32 2,399,169.79
Less: Cost of Sales 993,690.18 1,083,867.03 1,152,624.16 1,229,419.09 1,311,089.26

Gross Profit 181,875.42 648,621.90 867,944.41 995,113.23 1,088,080.53
Less: Operating Expense
Selling Expense 9,737.98 10,441.66 10,932.15 11,349.34 11,745.12
Administrative
Expense 54,978.75 79,060.47 82,281.34 85,575.80 88,950.29
Total Operating Expenses 64,716.73 89,502.13 93,213.48 96,925.14 100,695.41
Operating Profit 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Net Income 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Statement of Cash Flow
The statement of cash flow is a basic component of the financial
statement, which summarizes the operating, investing and financing activities of
an entity.
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Table No. 19
Projected Statement of Cash Flows (As of December 31, 2018-2022)
2018 2019 2020 2021 2022
Cash Flow from Operating
Activities
Net Income 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Add(Deduct)
Depreciation Expense 3,116.67 3,116.67 3,116.67 3,116.67 3,116.67
Increase in Accounts Receivable 39,660.89 22,755.40 11,994.69 8,080.74 6,699.94
Increase in Merchandise
Inventory 11,814.07 1,158.70 956.84 1,071.82 1,159.41
Increase in Accounts Payable 19,700.28 4,520.82 3,333.15 3,587.42 4,034.19
Increase in VAT Payable 19,541.87 11,541.39 6,037.70 3,856.23 3,007.86
Net Cash Flow 108,042.55 554,384.54 774,266.91 899,595.85 989,684.48
Cash Flow from Investing
Activities
Acquisition of Fixed Asset 42,300.00
Net Cash Used (42,300.00) - - - -
Cash Flow from Financing
Activities
Initial Investment 375,000.00
Less: Withdrawals 98,431.74 190,569.34 307,401.66 425,558.95 537,924.18
Net Cash Provided 276,568.26 (190,569.34) (307,401.66) (425,558.95) (537,924.18)
Net Increase in Cash 342,310.82 363,815.19 466,865.25 474,036.91 451,760.30
Cash Balance Beg 342,310.82 706,126.01 1,172,991.26 1,647,028.17
Cash Balance Ending 342,310.82 706,126.01 1,172,991.26 1,647,028.17 2,098,788.47
Statement of Changes in Equity
The statement of changes in equity is an expanded statement of retained
earnings showing the changes during the year in all of the stockholders equity
accounts. It is widely used as a substitute for the statement of retained earnings
because it presents a more complete description of the transactions affecting
stockholders’ equity.
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Table No. 20
Projected Statement of Financial Position (As of December 31, 2018-2022)
Assets 2018 2019 2020 2021 2022
Current Asset
Cash 342,310.82 706,126.01 1,172,991.26 1,647,028.17 2,098,788.47
Accounts Receivable, Net 39,660.89 62,416.29 74,410.97 82,491.71 89,191.65
Inventory 11,814.07 12,972.77 13,929.61 15,001.44 16,160.84
Total Current Asset 393,785.77 781,515.07 1,261,331.85 1,744,521.32 2,204,140.97
Non Current Asset
Property, Plant and
Equipment,net 39,183.33 36,066.67 32,950.00 29,833.33 26,716.67
Total Non Current Asset 39,183.33 36,066.67 32,950.00 29,833.33 26,716.67
Total Asset 432,969.10 817,581.74 1,294,281.85 1,774,354.65 2,230,857.64
Liabilities and Partner's Equity
Current Liabilities
Accounts Payable 19,700.28 24,221.10 27,554.25 31,141.68 35,175.87
VAT Payable 19,541.87 31,083.26 37,120.96 40,977.19 43,985.05
Total Current Liabilties 39,242.15 55,304.36 64,675.21 72,118.87 79,160.92
Partner's Equity
Castillo, Capital 206,406.65 407,515.62 659,337.49 913,043.89 1,153,888.50
Bacayo, Capital 187,320.30 354,761.75 570,269.15 789,191.90 997,808.22
Total Partner's Equity 393,726.95 762,277.38 1,229,606.64 1,702,235.78 2,151,696.72
Total Liabilities & Partner's Equity 432,969.10 817,581.74 1,294,281.85 1,774,354.65 2,230,857.64
Financial Analysis
Financial statements analysis involves careful selection of data from
financial statements for the primary purpose of forecasting the financial health of
the company. This is accomplished by examining trends in key financial data,
comparing financial data across companies, and analyzing key financial ratios.
Although financial statements are essentially historical documents and they tell
what has happened during a particular period of time, most users are concerned
about what will happen in the future.
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Financial Ratios
Financial ratios are comparison in fraction, proportion, and percentage
form of two significant figures taken from financial statements. It expresses the
direct relationships between two or more quantities in the balance sheet and
income statement of a business firm.
Liquidity Ratios
Liquidity ratios are ratios that measure the firm’s ability to meet cash
needs as they arise.
Current Ratios. Current ratio is widely regarded as a measure of short
term debt paying ability.
Current ratio= Current assets/ Current liabilities
Table No. 21
Current Ratio
YEAR
Current Ratio
2018 2019 2020 2021 2022
Current Assets 393,785.77 781,515.07 1,261,331.85 1,744,521.32 2,204,140.97
Current Liabilities 39,242.15 55,304.36 64,675.21 72,118.87 79,160.92
Ratio 10.03 14.13 19.50 24.19 27.84
The table above shows the current ratios of the proposed business over
the projected years of operation. A declining ratio could indicate a deteriorating
financial condition or it might be the result of pairing of obsolete investments or
other stagnant current assets.
The computed current ratio shows that the company would still have
enough funds to pay for its debt.
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Quick Assets or Acid Test Ratio. Quick/Acid test ratio is a much more
vigorous test of a company’s ability to meet its short term debts. Inventories are
excluded from the total current assets leaving only the more liquid assets to be
divided by current liabilities.
Quick Assets Ratio= Quick assets (cash + marketable securities+ accounts
receivable, net) / Current liabilities.
Table No. 22
Quick Assets Ratio
YEAR
Quick Assets Ratio
2018 2019 2020 2021 2022
Quick Assets 381,971.70 768,542.30 1,247,402.24 1,729,519.88 2,187,980.13
Current Liabilities 39,242.15 55,304.36 64,675.21 72,118.87 79,160.92
Ratio 9.73 13.90 19.29 23.98 27.64
Based on the ratio, the company will be able to pay its dues without
relying much on its inventories. This is a good indication that the company will be
having good relationship with the creditors since the amount owed to them will be
paid.
Profitability Ratios
Profitability ratios are ratios that measure the overall performance of the
firm and its efficiency managing assets, liabilities and equity.
Gross Profit Margin. The gross profit margin shows the relationship
between sales and cost of products sold, measures the ability of a company to
control costs and inventories or manufacturing of products and to pass along
price increases to customers through sales.

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Gross Profit Margin= Gross profit/ Sales
The table below indicates the proposed business gross profit margin with
respect to net sales generated over the projected years of operation.
Table No. 23
Gross Profit Margin Ratio
Gross Profit YEAR
Margin Ratio 2018 2019 2020 2021 2022
Gross Profit 181,875.42 648,621.90 867,944.41 995,113.23 1,088,080.53
Net Sales 1,175,565.60 1,732,488.93 2,020,568.56 2,224,532.32 2,399,169.79
Ratio 0.15 0.37 0.43 0.45 0.45
The results show that the firm could cover up the expenses that it may
incur in its operation evidenced by the proportionate relationship of gross profit
and net sales.
Return on Equity Average = Net Income/ Average Partner’s Equity
Table No. 24
Return on Equity Average
Return on YEAR
Equity Average 2018 2019 2020 2021 2022
Net Income 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Average Equity 393,726.95 432,969.10 995,942.01 1,465,921.21 1,926,966.25
Ratio 0.30 1.29 0.78 0.61 0.51
It shows that 0.27% is the rate of yield on the initial year of the operation.
There is an increasing change in return on equity because the increase in equity
is not proportional to the change in net income.
Return on Assets. The return on assets increases overall efficiency of
the firm in managing assets and generating profits.
Return on Assets= Net income / Average total assets
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The following table no. 24 shows the computation of the company’s return
on assets ratio.
Table No. 25
Return on Assets
Return on YEAR
Assets
2018 2019 2020 2021 2022
Net Income 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Average Assets 432,969.10 625,275.42 1,055,931.79 1,534,318.25 2,002,606.14
Ratio 0.27 0.89 0.73 0.59 0.49
Table above shows the computed rate of return of assets for five
consecutive years. Return on asset indicates the amount of profit earned relative
to the level of investment in total asset. There is a decreasing trend because the
net income is not increasing as much as the assets.
Solvency Ratios
Solvency ratios are ratios that measure the extent of a firm’s financing,
with debt relative to equity and its ability to cover interest and other fixed charger
such as rent and sinking fund payments.
a. Debt Equity Ratio
Debt equity ratio measures debt relative to amounts of resources
provided by owners.
Debt equity ratio= Total liabilities/ Total equity
Table no. 25 shows the debt equity ratio of the company.
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Table No. 27
Debt Equity Ratio
Debt Equity YEAR

Ratio
2018 2019 2020 2021 2022
Total Liabilities 39,242.15 55,304.36 64,675.21 72,118.87 79,160.92
Partner’s Equity 393,726.95 762,277.38 1,229,606.64 1,702,235.78 2,151,696.72
Ratio 0.10 0.07 0.05 0.04 0.04
The debt equity ratio is decreasing yet stable which means that the
company is using its assets to generate higher sales.
Debt Ratio. Debt ratio measures the proportion of all assets that are
financed with debt. The use of debt involves risk because debt carries a fixed
obligation in the form of interest charges and principal repayments.
Table No. 28
Debt Ratio
YEAR
Debt Ratio
2018 2019 2020 2021 2022
Total Liabilities 39,242.15 55,304.36 64,675.21 72,118.87 79,160.92
Total Assets 432,969.10 817,581.74 1,294,281.85 1,774,354.65 2,230,857.64
Ratio 0.09 0.07 0.05 0.04 0.04
Table no. 26 above shows that the debt of the company increases for two
consecutive years and decreases on the following year. The increasing ratio is
not good for the company because it means that more debt is used to finance
investing and operating activities.
Activity Ratios
Activity ratios measure company sales per another asset account—the
most common asset accounts used are accounts receivable, inventory, and total
assets. Activity ratios measure the efficiency of the company in using its
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resources. Since most companies invest heavily in accounts receivable or
inventory, these accounts are used in the denominator of the most popular
activity ratios.
Inventory Turnover. Inventory turnover ratio is the total annual sales or
the cost of goods sold divided by the cost of inventory.
Inventory Turnover = Total Annual Sales or Cost of Goods Sold /
Inventory Cost
The table below shows the inventory turnover of the company.

Table No. 28
Inventory Turnover
Inventory YEAR
Turnover
2018 2019 2020 2021 2022
Cost of Goods
Sold 993,690.18 1,083,867.03 1,152,624.16 1,229,419.09 1,311,089.26
Average
Inventory 11,814.07 12,393.42 13,451.19 14,465.52 15,581.14
Days 84.11 87.46 85.69 84.99 84.15
Results from table above shows a decreasing but stable inventory
turnover which indicates the company is using its assets to generate higher sales.
Total Assets Turnover. The total asset turnover represents the amount of
revenue generated by a company as a result of its assets on hand.
Total Assets Turnover = Sales/Total Assets
The table below shows the total assets turnover of the company.
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Table No. 29
Total Assets Turnover
YEAR
Total Assets
Turnover 2018 2019 2020 2021 2022
Net Sales 1,175,565.60 1,732,488.93 2,020,568.56 2,224,532.32 2,399,169.79
Average
Assets 432,969.10 625,275.42 1,055,931.79 1,534,318.25 2,002,606.14
Ratio 2.72 2.77 1.91 1.45 1.20
The positive ratio of asset turnover, although it is decreasing, still signifies
that the company will be able to use its assets appropriately to realize sales.
Break-Even Point Analysis
An analysis to determine the point at which revenue received equals the
costs associated with receiving the revenue. Break-even analysis calculates what
is known as a margin of safety, the amount that revenues exceed the break-even
point. This is the amount that revenues can fall while still staying above the
break-even point.
Break-Even Point Peso. It is the level of sales volume where total
revenues and total expenses are equal, that is, there is neither profit nor loss.
Break-Even Point (peso) = Total Fixed Cost Contribution Margin Ratio.
Table No. 30
Break Even Point – Peso Sales
BEP - Peso YEAR
Sales 2018 2019 2020 2021 2022
Fixed Costs 427,424.86 462,053.57 475,315.35 491,476.95 506,412.23
Divided by: CM
Ratio 64.73 81.05 81.68 79.94 77.35
BEP - Peso
Sales 6,603.23 5,701.16 5,819.03 6,148.40 6,546.76
Break-Even Point Unit. Break-even point is the level of sales volume where
total revenues and total expenses are equal, that is, there is neither profit nor
loss (Cabrera, 2007).

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Break-Even Point = Total Fixed Cost

(Units) Contribution Margin per unit
Table No. 31
Break Even Point – Unit Sales
BEP - Unit YEAR
Sales 2018 2019 2020 2021 2022
Fixed Costs 24.74 24.31 22.73 21.37 20.02
Divided by:
CM/unit 0.50 0.63 0.66 0.67 0.67
BEP - Unit
Sales 49.72 38.34 34.39 32.03 30.06
Annual Cash Return
A rate of return often used in real estate transactions. The
calculation determines the cash income on the cash invested.
Table No. 32
Annual Cash Return
Annual Cash YEAR
Return 2018 2019 2020 2021 2022
Net Income 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Add: 3,116.67 3,116.67 3,116.67 3,116.67 3,116.67
Depreciation 809.41 1,273.80 1,518.59 1,683.50 1,820.24
Expense
Annual Cash
Return 121,084.76 563,510.24 779,366.18 902,988.26 992,322.02
Payback Period
Payback period measures the length of time required to recover the
amount of initial outlay and the full recovery of the investment.
Since the annual cash returns are not uniform, payback period is
computed by accumulating the estimated cash inflows and determining the point
in time at which they equal the outlay.
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Table No. 33
Payback Period
Year Annual Cash Flow Cash to Date Payback Period
2018 121,084.76 121,084.76 1
2019 563,510.24 684,595.00 -0.52
2020 779,366.18 0.00
2021 902,988.26 0.00
2022 992,322.02 0.48
Total Payback Period 6 months
Table No. 30 above shows that the payback period for the company is 6
months. By this year, the partners have already accumulated their contributed
capital. The company is also financially stable.
Summary
In this part of the study, MEI’ ZCHIN Manufacturing Company have
discussed all the expenses needed to start their business. It covers the proper
costing of materials, equipment and other expenses incurred in the operation of
the business.
In the initial capital of PHP350,000.00, the basis for capital contribution is
based on the total project cost obtained. The product costing should be
completed properly for the determination of the selling price and profit
percentage. Financial statement includes the project income statement, balance
sheet, statement of cash flow and statement of changes in equity. The Mùzhì:
Wooden Tealight Candle Holder financial status is indicated in the written
document. All of the costing, revenues and expenses are also indicated.
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ACTION PLAN
This chapter discusses the company’s long term plans of action that will
be implemented and applied for corporate growth and development. A sequence
of steps that must be taken, or activities that must be performed well, are
strategies for the company to succeed. An action plan has three major elements
(1) Specific tasks: what will be done and by whom. (2) Time horizon: when will it
be done. (3) Resource allocation: what specific funds are available for specific
activities.
Raising Additional Capital
It refers to obtaining capital from investors or venture capital sources.
Initial capital serves as the foundation of business. Proper allocation of the
capital may make the business successful. As what has been projected on
financial statements from 2018-2022, MEI’ ZCHIN Manufacturing Company, is
profitable and has its market lead. For the next five years of the company’s
operation, additional capital will not be necessary based on its projected financial
statements.
Developing Management Expertise
The company should develop a highly competitive management team to
sustain the competition. It is how the company will meet the demands of the
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consumers. Developing management expertise is one of the most important
things that will help the firm to build its market position.
As a new entrant in the field of business, the proponents have already
mapped out and planned on how to operate the company in a year’s time.
The company should use strategies by giving worthwhile activities to
improve the relationship between the employer and the employees. They intend
to have a good working environment due to proper dissemination of information.
The management will attend seminars to gain more knowledge and information
regarding the business operations and best practices of other companies.
Acquiring Technology and Equipment
Acquiring technologies benefits the company and enhance their
competitiveness, which is very helpful in the operation of the business.
The use of computers nowadays is very common, together with the
softwares that makes any transaction faster and easier. Acquiring additional
high-tech machines and equipment for better production may increase the
company’s profitability in the future.Technology is the most consistent factor in
terms of business success. The company will acquire new equipment that will
help the workers to become more productive and may result to the effective and
productive operation of the company. The raw materials will also be modified and
78
made better based on new customer profiles and their ever changing tastes and
preferences.
For quality, the company will provide computers to search for more ideas
regarding the arts and designs. Acquiring additional high-tech machine and
equipment’s may improve production. For safety target and zero accident, MEI’
ZCHIN Manufacturing Company will open a program for their production operator,
The Safety First or the “GO ANZEN NI means Let's Be Safe”.
Training and Development
Training and development will help expand the horizons of human intellect
and an overall personality of the employees by providing adequate knowledge
and skills to them. With trainings, the workers will have a chance to explore and
enhance their expertise. It will create the learning culture within the organization
and improve the morale of the workforce so that they could have a greater
corporate image.
Training is considered as an important and most effective tool, which
helps the employees to improve the quality of the workforce. Training and
development helps to achieve the organizational objectives. Training provides a
unique service to the employees and benefit from the organization itself. Training
is the most essential for all employees of the firm for building their career and
preparing them for new challenges. Leadership training programs will be

79
conducted to have a harmonious relationship in the work environment. And this
will be one of the keys in our business success.
Hiring Qualified Employees
Qualified workers are the best assets of a company. The company will
make sure that the management hire those employees ,who will be working with
the public and able to meet deadlines, work well with others, and have an
understanding that they need to present themselves in a professional manner at
all times.
In the expansion of the company, increase of capital and additional
workers will be needed. This is planned precisely to have a good and successful
development. We will be hiring people with more experiences, ready to learn and
have a challenging personality. She/he must not be a murmuring person. She/he
must work professionally, a skilled individual, and ready to accept mistakes or job
errors. Additional benefits will be given like bonus, leave (ex. birthday leave,for
regular: once a month), and thirteenth month pay.
Installation of Accounting and Information Systems
An accounting information system consists of the people, records, and
methods used to gather financial information about business events, record it,
process it into a useful form, and communicate the information to end users and
decision makers. In other words, an accounting system is everything and

80
everyone involved in collecting, recording, and organizing financial transactions
for the company.
The company needs a systematized accounting and information
management facility that can be easily accessed. This will help in the capacity of
the company to grow in structure. The certain system is needed by the company
for its smooth operation and to secure the rapid growth of the company. It is the
best tool that is needed to be applied in the different ways of payroll distribution
and to monitor the process of product distribution to its end- users and to people
who are involved including the supplier, distributor and consignor.
Advertising and Promotion Expertise
Advertisement is the marketing tool that should be effective in
encouraging the consumers to buy the product. Advertising is often considered
by paying to deliver and control a marketing message, and it helps to find and
target the specific customers.
The plan of MEI’ ZCHIN Manufacturing Company is to promote by the use
of social media, television ads, fliers and posters, word of mouth and magazines
to easily establish the brand and also the company’s name.
Outsourcing
Outsourcing is an effective cost-saving strategy when used properly. It is
sometimes more affordable to purchase goods from companies with comparative
advantages than it is to produce the goods internally. There are many reasons
81
why companies do outsourcing, but the most prominent advantage seems to be
the fact that it often saves money.
MEI’ ZCHIN Manufacturing Company will outsource the product like the
tealight candle and the packaging. We will do outsourcing to reduce the cost of
our production. We will choose the suppliers with good business communication
and good relationship.
Formation of Strategic Policies
MEI’ ZCHIN Manufacturing Company will make policies that will hold asset
employees by increasing their salaries. Bonuses with chosen occasion, 13th
month salary and a leave of a week quarterly will also be paid. The company
deems that these strategic policies will help ensure the best workers to provide
quality output with the company.
The strategic policies describes any organization that uses deliberate
planning to structure activities and provides guidelines for implementing activities.
A small business can set strategic policy to gain a desired market share. For
instance, a company might create a marketing plan by reaching the goals.
82
Summary
To sum up the entire action plan chapter, MEI’ ZCHIN Manufacturing
Company will assimilate and utilize an extraordinary strength of mind to raise the
line of operations in terms of investments and borrowing of money, advertising of
the product, maintaining best workers, and strategic policies the company will
use. Those future plans and goals create a pattern for growth and development.
Regarding teamwork, the company will provide more trainings for
employees to improve their skills in their capability to work. The managers will
enroll in Masteral courses to enhance their skills also. Hiring of employees will be
according to qualifications like more experiences, ready to learn and have a
challenging personality.
For quality, the company will provide computers for more ideas regarding
arts and designs, acquiring additional high-tech machines and equipment for
better production. To monitor our financial status, we will be installing an
accounting and information system. For additional capital, we will use our
savings and will have an investor, who can be our partner for better improvement
in the company. In outsourcing, MEI' ZCHIN Manufacturing Company will
continue to be a loyal partner to their suppliers in the outsource of tealight
candles and packaging, also by building a good relationship with their distributors
and trust with their company consignor.
83
REFERENCES
84
BOOKS
Ballada, Susan and Ballada, Win Lu, 2004. Partnership and Corporation
Accounting. Manila: Dome Dane Publishers
Diola, Z. and Tichepeco, E. (2009). Marketing: A Simplified Approach. C&E

Publishing Inc.Quezon City.
Fernandez N. and Fernandez J. (2014). Network Marketing: Beginners

Handbook.
Goto, Ginichi. (2006). The Employee Code Of Conduct. Pilipinas Kyoritsu Inc.
Go, Josiah, 2004. Fundamentals of Marketing in the Philippine Setting. Design

Plus, 30 Narig St. Veterans Village, Project 7, Quezon City, Philippines
Inigo, Conrado E. Jr. Ph.D, (2013). Management for Filipinos Principles and
Application. Rex Bookstore: Manila.
Mendoza, Shirley I., 2003. Modules for Marketing. Rex Bookstore, Inc.
McQuarrie, Edward F. (2009). The Market Research Toolbox: A Concise Guide
for Beginners. Rex Bookstore Manila.
Perada, P. and Perada Pu, (2014). Human Resource Management. Rex Printing
Company.
Valix, C. T., J. F., & Valix, CA. M. (2008). Financial Accounting volume 3. Claro
M. Recto, Manila: Conanan Edition Supply
Zarate, C. A. (2009), Principles of Management. South Triagle, Quezon City

Philippines: C & E Publishing, Inc.
85
DICTIONARIES
Collins English Dictionary (2017) https://www.collinsdictionary.com/dictionary/
english/tealight
ELECTRONIC SOURCES
Sam in Woodworking (2017). Wooden Candle Holder. Retrieved from http://www.
instructables.com/id/Wooden-Candle-Holder
Unknown Author (2017). Tealight. Retrieved from https://en.wikipedia.org/wiki/
Tealight
UNPUBLISHED THESES
Atienza, J. and Dote, G. (2014). Creamilicious Puff Company Cream Puff:
A Business Plan. Alangilan, Batangas City.
Carandang, J., De Torres A., and Sandigan E. (2006). J.A.E. Manufacturing
Company: Dollhouse Miniatures Manufacturing Business: A Business
Plan. Alaniglan, Batangas City.
Dano, K. and Tandoc M., (2016). Wudi: Wooden Cell Phone Holder. Alangilan,
Batangas City.
Doce, M. and Sadicon, G. (2013). Manufacturing of Chipnuts: A Business Plan.
Alangilan, Batangas City.
86
SCHEDULES
87
Schedule 1
Sales Price Per Unit
2018 2019 2020 2021 2022
Direct Material Used/Unit 10.18 10.54 10.83 11.12 11.42
Labor Cost/Unit 24.13 23.04 21.99 20.99 20.03
Factory Overhead/ Unit 23.77 23.49 22.34 21.38 20.40
Total Cost/Unit 58.09 57.07 55.16 53.49 51.86
Markup 58.09 57.07 55.16 53.49 51.86
Selling Price to Retailers per Unit 116.17 114.14 110.32 106.97 103.71
Input Vat 12% 13.94 13.70 13.24 12.84 12.45
Suggested Selling Price per Unit 130.11 127.84 123.56 119.81 116.16
Markup Percentage 100.00% 100.00% 100.00% 100.00% 100.00%
Schedule 2
Sales Volume
Particulars 2018 2019 2020 2021 2022
Beg. Inventory 6,912 10,368 12,511 14,204
Add: Units Produced 17,280 19,008 20,909 23,000 25,300
Units Available for Sale 17,280 25920 31,277 35,510 39,504
Less: Ending Inventory 6,912 10,368 12,511 14,204 15,802
Sales in Units 10,368 15,552 18,766 21,306 23,702
Schedule 3
Direct Material Purchases
Particulars 2018 2019 2020 2021 2022
Pallochina Wood 86,400.00 97,587.07 110,222.65 124,494.27 140,613.79
Spray Paint 99,000.00 111,818.52 126,296.78 142,649.69 161,119.97
Tea Light Candle 14,400.00 16,264.51 18,370.44 20,749.05 23,435.63
Direct Materials (Inclusive of VAT) 199,800.00 225,670.10 254,889.87 287,893.01 325,169.40
Input VAT 21,407.14 24,178.94 27,309.63 30,845.68 34,839.58

Direct Materials (Exclusive of
VAT) 178,392.86 201,491.16 227,580.24 257,047.33 290,329.82
88
Schedule 4
Direct Materials Used
2018 2019 2020 2021 2022
Direct Materials, Beg 1,990.01 2,267.57 2,561.38 2,893.03
Direct Materials Purchases 199,800.00 225,670.10 254,889.87 287,893.01 325,169.40
Add: Freight In 1,998.00 2,256.70 2,548.90 2,878.93 3,251.69
Less: Purchase Discount(2%) 2,797.20 3,159.38 3,568.46 4,030.50 4,552.37

Net Purchases 199,000.80 226,757.43 256,137.88 289,302.82 326,761.75
Less: Direct Materials,
End(1%) 1,990.01 2,267.57 2,561.38 2,893.03 3,267.62
DM Used (Inclusive of VAT) 197,010.79 224,489.86 253,576.51 286,409.79 323,494.13
Input VAT 21,108.30 24,052.48 27,168.91 30,686.76 34,660.09
DM Used (Exclusive of VAT) 175,902.49 200,437.37 226,407.59 255,723.02 288,834.04
Divided by: Annual Production 17280 19008 20909 23000 25300
Direct Materials Used per Unit 10.18 10.54 10.83 11.12 11.42
Schedule 5
Direct Labor
Particulars 2018 2019 2020 2021 2022
No. of Factory Worker 3 3 3 3 3
Multiply by No. of Days 278 278 278 278 278
Total Annual Working Days 834 834 834 834 834
Multiply by Labor Rate 500.00 525.00 551.25 578.81 607.75
Direct Labor Cost 417,000.00 437,850.00 459,742.50 482,729.63 506,866.11
Divided by: Annual Production 17,280 19,008 20,909 23,000 25,300
Direct labor per Unit 24.13 23.04 21.99 20.99 20.03
Schedule 6
Indirect Materials
Particulars 2018 2019 2020 2021 2022
Shell Wood (Glue) 48,000.00 48,793.54 53,672.89 59,040.18 64,944.20
Masilya 28,800.00 32,529.02 36,740.88 41,498.09 46,871.26
Packaging 9,600.00 10,843.01 12,246.96 13,832.70 15,623.75
Masking tape 6,000.00 6,776.88 7,654.35 8,645.44 9,764.85
Indirect Materials(VAT Inclusive) 92,400.00 98,942.45 110,315.08 123,016.40 137,204.06
Input VAT 9,900.00 10,600.98 11,819.47 13,180.33 14,700.44
Indirect Materials(VAT
Exclusive) 82,500.00 88,341.47 98,495.61 109,836.07 122,503.63
89
Schedule 7
Rent Expense
Particulars 2018 2019 2020 2021 2022
Rent Expense (Inclusive of VAT) 60,000.00 126,000.00 132,000.00 138,000.00 144,000.00

Input VAT 6,428.57 13,500.00 14,142.86 14,785.71 15,428.57
Rent Expense (Exclusive of VAT) 53,571.43 112,500.00 117,857.14 123,214.29 128,571.43

Factory (60%) 32,142.86 67,500.00 70,714.29 73,928.57 77,142.86
Office (40%) 21,428.57 45,000.00 47,142.86 49,285.71 51,428.57
Schedule 8
Utilities Expense
Particulars 2018 2019 2020 2021 2022
Electricity 12,857.16 14,142.88 15,557.16 17,112.88 18,824.17
Input VAT 1,377.55 1,515.31 1,666.84 1,833.52 2,016.88
Electricty (VAT Exclusive) 11,479.61 12,627.57 13,890.32 15,279.36 16,807.29
Water 2,400.00 2,640.00 2,904.00 3,194.40 3,513.84
Total 13,879.61 15,267.57 16,794.32 18,473.76 20,321.13
Factory (60%) 8,327.76 9,160.54 10,076.59 11,084.25 12,192.68
Office (40%) 5,551.84 6,107.03 6,717.73 7,389.50 8,128.45
Telecommunication 10,703.52 10,990.37 11,284.92 11,587.35 11,897.89
Input VAT 1,146.81 1,177.54 1,209.10 1,241.50 1,274.77
Telecomunication (VAT
Exclusive) 9,556.71 9,812.83 10,075.82 10,345.85 10,623.12
Schedule 9
Delivery Expense
Particulars 2018 2019 2020 2021 2022
Delivery Expense 4,800.00 4,928.64 5,060.73 5,196.36 5,335.62
Total Expenses 4,800.00 4,928.64 5,060.73 5,196.36 5,335.62
Delivery Expenses- Factory 60% 2,880.00 2,957.18 3,036.44 3,117.81 3,201.37
Delivery Expense- Office 40% 1,920.00 1,971.46 2,024.29 2,078.54 2,134.25
90
Schedule 10
Maintenance Expense
Particulars 2018 2019 2020 2021 2022
Broom 160.00 164.29 168.69 173.21 177.85
Doormat 420.00 431.26 442.81 454.68 466.87
Dustpan 70.00 71.88 73.80 75.78 77.81
Fire Extinguisher 1,499.75 1,539.94 1,581.21 1,623.59 1,667.10
First Aid Kit 300.00 308.04 316.30 324.77 333.48
Floor Mop 300.00 308.04 316.30 324.77 333.48
Garbage Bag Large 240.00 246.43 253.04 259.82 266.78
Garbage Bag Small 120.00 123.22 126.52 129.91 133.39
Pail 90.00 92.41 94.89 97.43 100.04
Rag 96.00 98.57 101.21 103.93 106.71
Soap 840.00 862.51 885.63 909.36 933.73
Trash Can 80.00 82.14 84.35 86.61 88.93
Wall Clock 500.00 513.40 527.16 541.29 555.79
Maintenance Expense (VAT Inclusive) 4,715.75 4,842.13 4,971.90 5,105.15 5,241.97
Input VAT 505.26 518.80 532.70 546.98 561.64
Maintenance Expense (VAT Exclusive) 4,210.49 4,323.33 4,439.20 4,558.17 4,680.33
Factory (60%) 2,526.29 2,594.00 2,663.52 2,734.90 2,808.20
Office (40%) 1,684.20 1,729.33 1,775.68 1,823.27 1,872.13
Schedule 11
Factory Tools and Supplies
Particulars 2018 2019 2020 2021 2022
Clamp 599.50 0.00 0.00 0.00 0.00
Drill Press 6,999.50 0.00 0.00 0.00 0.00
Dust mask 720.00 0.00 0.00 0.00 0.00
Grinder 4,400.00 0.00 0.00 0.00 0.00
Meter 150.00 0.00 0.00 0.00 0.00
Pand Sandder 1,584.00 0.00 0.00 0.00 0.00
Pencil 63.00 0.00 0.00 0.00 0.00
Factory Tools and Supplies (VAT
Inclusive) 14,516.00 - - - -
Input VAT 1,555.29 - - - -
Factory Tools and Supplies (VAT
Exclusive) 12,960.71 - - - -
Schedule 12
Consignment Expense
Particulars 2018 2019 2020 2021 2022
Consignment Commission (3% of Sales) 48,069.33 49,686.50 53,399.97 57,587.62 62,116.49

Rent 192,000.00 240,000.00 240,000.00 240,000.00 240,000.00
Consignment Expense 240,069.33 246,069.33 252,069.33 258,069.33 264,069.33
91
Schedule 13
Factory Overhead
Particulars 2018 2019 2020 2021 2022
Indirect Materials 82,500.00 88,341.47 98,495.61 109,836.07 122,503.63
Factory Rent Expense 32,142.86 67,500.00 70,714.29 73,928.57 77,142.86
Factory Maintenance Expense 2,526.29 2,594.00 2,663.52 2,734.90 2,808.20
Factory Delivery 2,880.00 2,957.18 3,036.44 3,117.81 3,201.37
Factory Tools and Supplies 12,960.71 - - - -
Factory Utilities Expense 8,327.76 9,160.54 10,076.59 11,084.25 12,192.68
Factory Equipment 800.00 800.00 800.00 800.00 800.00
Factory Furnitures & Fixtures 790.00 790.00 790.00 790.00 790.00
Employee benefits-Employer 27,828.00 28,278.00 28,522.80 31,381.20 32,706.00
Total Factory Overhead (VAT Exc) 410,824.97 446,490.53 467,168.58 491,742.15 516,214.07
Divided by: Annual Production 17,280.00 19,008.00 20,908.80 22,999.68 25,299.65
Factory Overhead/Unit 23.77 23.49 22.34 21.38 20.40
Schedule 14
Depreciation of Property, Plant and Equipment
Cost VAT Annual
Particulars Cost Input VAT Exclusive Useful Depreciation
Factory Equipment
Cutter Machine 16,000.00 1,714.29 14,285.71 20 800.00
Total Factory Equipment 16,000.00 1,714.29 14,285.71 800.00
Factory Furniture & Fixtures
Ceiling Fan 1,600.00 171.43 1,428.57 10 160.00
Working Table 4,500.00 482.14 4,017.86 10 450.00
Working Chairs 1,800.00 192.86 1,607.14 10 180.00
Total Factory Furniture&Fixtures 7,900.00 846.43 7,053.57 790.00

Office Equipment
Computer Set 9,000.00 964.29 8,035.71 10 900.00
Total Office Equipment 9,000.00 964.29 8,035.71 900.00
Office Furniture & Fixtures
Ceiling Fan 1,600.00 171.43 1,428.57 15 106.67
Office Table 3,000.00 321.43 2,678.57 15 200.00
Swivel Chair 3,000.00 321.43 2,678.57 15 200.00
Filling Cabinet 1,800.00 192.86 1,607.14 15 120.00
Total Office Furniture&Fixtures 9,400.00 1,007.14 8,392.86 626.67
Total 42,300.00 4,532.14 37,767.86 3,116.67
92
Schedule 15
Employee Contribution
2018 Monthly Deductions Total Net
PhilHealth
Employee Salary SSS and Pag ibig Deductions Pay
Worker 1 12,000.00 327.00 200.00 527.00 11,473.00
Worker 2 12,000.00 327.00 200.00 527.00 11,473.00
Worker 3 12,000.00 327.00 200.00 527.00 11,473.00
Total-Monthly 36,000.00 981.00 600.00 1,581.00 34,419.00
Total-Annual 432,000.00 11,772.00 7,200.00 18,972.00 413,028.00

Employee Salary SSS PhilHealth Deductions Pay
Worker 1 12,600.00 327.00 212.50 539.50 12,060.50
Worker 2 12,600.00 327.00 212.50 539.50 12,060.50
Worker 3 12,600.00 327.00 212.50 539.50 12,060.50
Total-Monthly 37,800.00 981.00 637.50 1,618.50 36,181.50
Total-Annual 453,600.00 11,772.00 7,650.00 19,422.00 434,178.00

Worker 1 13,230.00 345.20 212.50 557.70 12,672.30
Worker 2 13,230.00 345.20 212.50 557.70 12,672.30
Worker 3 13,230.00 345.20 212.50 557.70 12,672.30
Total-Monthly 26,460.00 1,035.60 425.00 1,673.10 38,016.90
Total-Annual 317,520.00 12,427.20 5,100.00 20,077.20 456,202.80

Worker 1 13,891.50 363.30 125.00 488.30 13,403.20
Worker 2 13,891.50 363.30 125.00 488.30 13,403.20
Worker 3 13,891.50 363.30 125.00 488.30 13,403.20
Total-Monthly 41,674.50 1,089.90 375.00 1,464.90 40,209.60
Total-Annual 500,094.00 13,078.80 4,500.00 17,578.80 482,515.20

Worker 1 14,586.08 381.50 225.00 606.50 13,979.58
Worker 2 14,586.08 381.50 225.00 606.50 13,979.58
Worker 3 14,586.08 381.50 225.00 606.50 13,979.58
Total-Monthly 43,758.23 1,144.50 675.00 1,819.50 41,938.73
Total-Annual 525,098.70 13,734.00 8,100.00 21,834.00 503,264.70
93
Schedule 16
Employer Contribution
SSS 663.00 663.00 663.00 1,989.00 23,868.00
ER 10.00 10.00 10.00 30.00 360.00
Philhealth 100.00 100.00 100.00 300.00 3,600.00
Total 773.00 773.00 773.00 2,319.00 27,828.00

SSS 663.00 663.00 663.00 1,989.00 23,868.00
ER 10.00 10.00 10.00 30.00 360.00
Philhealth 112.50 112.50 112.50 337.50 4,050.00
Total 785.50 785.50 785.50 2,356.50 28,278.00

SSS 669.80 669.80 669.80 2,009.40 24,112.80
ER 10.00 10.00 10.00 30.00 360.00
Philhealth 112.50 112.50 112.50 337.50 4,050.00
Total 792.30 792.30 792.30 2,376.90 28,522.80

SSS 736.70 736.70 736.70 2,210.10 26,521.20
ER 10.00 10.00 10.00 30.00 360.00
Philhealth 125.00 125.00 125.00 375.00 4,500.00
Total 871.70 871.70 871.70 2,615.10 31,381.20

SSS 773.50 773.50 773.50 2,320.50 27,846.00
ER 10.00 10.00 10.00 30.00 360.00
Philhealth 125.00 125.00 125.00 375.00 4,500.00
Total 908.50 908.50 908.50 2,725.50 32,706.00
Schedule 17
13th Month Pay
Particulars 2018 2019 2020 2021 2022
Workers(3) 36,000.00 37,800.00 39,690.00 41,674.50 43,758.23
Total 36,000.00 37,800.00 39,690.00 41,674.50 43,758.23
94
Schedule 18
Office Supplies Expense
Particulars 2018 2019 2020 2021 2022
Ballpen 45.00 46.21 47.44 48.72 50.02
Bondpaper Long 296.00 303.93 312.08 320.44 329.03
Bondpaper Short 250.00 256.70 263.58 270.64 277.90
Calculator 300.00 308.04 316.30 324.77 333.48
Daily Time Record 1,800.00 1,848.24 1,897.77 1,948.63 2,000.86
Envelope 87.50 89.85 92.25 94.73 97.26
Fastener 50.00 51.34 52.72 54.13 55.58
Folders 187.75 192.78 197.95 203.25 208.70
Log Book 140.00 143.75 147.60 151.56 155.62
Marker 60.00 61.61 63.26 64.95 66.70
Paper clip 16.00 16.43 16.87 17.32 17.79
Pencil 63.00 64.69 66.42 68.20 70.03
Puncher 40.00 41.07 42.17 43.30 44.46
Receipt 18.00 18.48 18.98 19.49 20.01
Scissor (big) 200.00 205.36 210.86 216.51 222.32
Staple wire 12.00 12.32 12.65 12.99 13.34
Stapler 60.00 61.61 63.26 64.95 66.70
Alcohol 600.00 616.08 632.59 649.54 666.95
Tape 54.00 55.45 56.93 58.46 60.03
Office Supplies 4,279.25 4,393.93 4,511.69 4,632.60 4,756.76
Input VAT 458.49 470.78 483.40 496.35 509.65
Office Supplies Expense (VAT Exc) 3,820.76 3,923.16 4,028.30 4,136.25 4,247.11
Schedule 19
Taxes and Licenses
Particulars 2018 2019 2020 2021 2022
BIR Registration 500.00 500.00 500.00 500.00 500.00
SEC Registration 500.00
Mayor's Permit 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Business TAX 90.00 90.00 90.00 90.00 90.00
Fire Inspection Fee 300.00 300.00 300.00 300.00 300.00
Sanitary Permit and Sanitary
Inspection Fee 400.00 400.00 400.00 400.00 400.00
Environmental Protection
Fee/Business 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Inspection and Monitoring Fee 300.00 300.00 300.00 300.00 300.00
BMBE Registration Fee 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00
Taxes and Licenses Total 9,490.00 8,990.00 8,990.00 8,990.00 8,990.00
95
Schedule 20
Salary of Bookkeeper
Particulars 2018 2019 2020 2021 2022
Salary of Bookkeeper 36,000.00 36,964.80 37,955.46 38,972.66 40,017.13
Schedule 21
Salary Allocation of Partners
Particulars 2018 2019 2020 2021 2022
General Manager 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13
Operational Manager 162,000.00 170,100.00 178,605.00 187,535.25 196,912.01
Schedule 22
Advertising Expense
Particulars 2018 2019 2020 2021 2022
Tarpaulin 5,000.00 5,134.00 5,271.59 5,412.87 5,557.93
Flyers, Posters and Social media 5,000.00 5,134.00 5,271.59 5,412.87 5,557.93
Total Advertising Expense 10,000.00 10,268.00 10,543.18 10,825.74 11,115.87
Input VAT 1,071.43 1,100.14 1,129.63 1,159.90 1,190.99
Advertising Expense (VAT Exc) 8,928.57 9,167.86 9,413.56 9,665.84 9,924.88
Schedule 23
Fixed Costs
Particulars 2018 2019 2020 2021 2022
Bookkeeper Salary 36,000.00 36,964.80 37,955.46 38,972.66 40,017.13
Employee Benefit-Factory 27,828.00 28,278.00 28,522.80 31,381.20 32,706.00
Depreciation- Factory Furn and
Fix 790.00 790.00 790.00 790.00 790.00
Depreciation-Factory Equipment 800.00 800.00 800.00 800.00 800.00
Depreciation-Office Equipment 900.00 900.00 900.00 900.00 900.00
Depreciation-Office Furniture &
Fixt 626.67 626.67 626.67 626.67 626.67
Rent Expense-Factory 32,142.86 32,142.86 32,142.86 32,142.86 32,142.86
Rent Expense-Office 21,428.57 45,000.00 47,142.86 49,285.71 51,428.57
Office Supplies Expense 3,820.76 3,923.16 4,028.30 4,136.25 4,247.11
Maintenance Expense-Factory 2,526.29 2,594.00 2,663.52 2,734.90 2,808.20
Maintenance Expense-Office 1,684.20 1,729.33 1,775.68 1,823.27 1,872.13
Utilities Expense-Factory 8,327.76 9,160.54 10,076.59 11,084.25 12,192.68
Utilities Expense-Office 5,551.84 6,107.03 6,717.73 7,389.50 8,128.45
Advertising Expense 8,928.57 9,167.86 9,413.56 9,665.84 9,924.88
Total Fixed Cost 427,424.86 462,053.57 475,315.35 491,476.95 506,412.23
Divided by Annual Production 17,280.00 19,008.00 20,908.80 22,999.68 25,299.65
Fixed Cost per Unit 24.74 24.31 22.73 21.37 20.02
96
Schedule 24
Variable Cost
Particulars 2018 2019 2020 2021 2022
Direct Materials 178,392.86 201,491.16 227,580.24 257,047.33 290,329.82
Direct Labor 417,000.00 437,850.00 459,742.50 482,729.63 506,866.11
Total Variable Cost 677,892.86 727,682.64 785,818.35 849,613.03 919,699.55
Divide by: Annual Production 17,280.00 19,008.00 20,908.80 22,999.68 25,299.65
Variable Cost per Unit 39.23 38.28 37.58 36.94 36.35
Schedule 25
Contribution Margin Per Unit
Particulars 2018 2019 2020 2021 2022
Sales 1,349,009.70 1,988,102.05 2,318,685.24 2,552,742.01 2,753,145.66
Total Variable Costs 677,892.86 727,682.64 785,818.35 849,613.03 919,699.55
Contribution Margin 671,116.85 1,260,419.41 1,532,866.89 1,703,128.98 1,833,446.11
Units Sold 10,368.00 15,552.00 18,766.08 21,306.24 23,702.28
Contribution Margin per Unit 64.73 81.05 81.68 79.94 77.35
Contribution Margin
Percentage 0.50 0.63 0.66 0.67 0.67
Schedule 26
Input Vat
Particulars 2018 2019 2020 2021 2022
Direct Materials 21,407.14 24,178.94 27,309.63 30,845.68 34,839.58
Rent Expense 6,428.57 13,500.00 14,142.86 14,785.71 15,428.57
Utilities expense 2,524.36 2,692.85 2,875.94 3,075.02 3,291.65
Maintenance Expense 505.26 518.80 532.70 546.98 561.64
Office Supplies 458.49 470.78 483.40 496.35 509.65
Factory Furniture and Fixtures 846.43 846.43 846.43 846.43 846.43
Factory Equipment 1,714.29 1,714.29 1,714.29 1,714.29 1,714.29
Office Equipment 964.29 964.29 964.29 964.29 964.29
Office Furniture & Fixtures 1,007.14 1,007.14 1,007.14 1,007.14 1,007.14
Advertising Expense 1,071.43 1,100.14 1,129.63 1,159.90 1,190.99
Total Input VAT 46,827.39 57,594.63 62,825.77 68,622.12 75,054.66
Schedule 27
Output Vat
Particulars 2018 2019 2020 2021 2022
Sales VAT Inclusive 1,349,009.70 1,988,102.05 2,318,685.24 2,552,742.01 2,753,145.66
Sales VAT Exclusive 1,204,472.95 1,775,091.11 2,070,254.68 2,279,233.94 2,458,165.77
Output Vat 144,536.75 213,010.93 248,430.56 273,508.07 294,979.89
97
Schedule 28
VAT Payable
Particulars 2018 2019 2020 2021 2022
Output VAT 144,536.75 213,010.93 248,430.56 273,508.07 294,979.89
Less: Input VAT 46,827.39 57,594.63 62,825.77 68,622.12 75,054.66
VAT Payable, beginning 97,709.36 155,416.30 185,604.80 204,885.95 219,925.24
VAT Payable (20%), ending 19,541.87 31,083.26 37,120.96 40,977.19 43,985.05
Schedule 29
Annual Cash Return
Particulars 2018 2019 2020 2021 2022
Net Income 117,158.69 559,119.77 774,730.92 898,188.09 987,385.11
Add: Depreciation Expense 3,116.67 3,116.67 3,116.67 3,116.67 3,116.67
Doubtful Accounts Expense 809.41 1,273.80 1,518.59 1,683.50 1,820.24

Annual Cash Return 121,084.76 563,510.24 779,366.18 902,988.26 992,322.02
Schedule 30
Administrative and Direct Labor Salaries
Particulars Daily Monthly Annually
General Manager 625.00 15,000.00 180,000.00
Operation Manager 562.50 13,500.00 162,000.00
Bookkeeper - 3,000.00 36,000.00
Carpenter 1 500.00 12,000.00 144,000.00
Carpenter 2 500.00 12,000.00 144,000.00
Painter 500.00 12,000.00 144,000.00
Total 16,187.50 67,500.00 810,000.00
98
NOTES
99
Note 1
Net Sales
Particulars 2018 2019 2020 2021 2022
Gross Sales 1,204,472.95 1,775,091.11 2,070,254.68 2,279,233.94 2,458,165.77
Cash Sales (70% of Gross Sales) 843,131.06 1,242,563.78 1,449,178.27 1,595,463.76 1,720,716.04
Credit Sales (30% of Gross Sales) 361,341.88 532,527.33 621,076.40 683,770.18 737,449.73
Less: Sales return and
Allowances(1%) 12,044.73 17,750.91 20,702.55 22,792.34 24,581.66
Cash Sales Discounts (2%) 16,862.62 24,851.28 28,983.57 31,909.28 34,414.32

Net Sales 1,175,565.60 1,732,488.93 2,020,568.56 2,224,532.32 2,399,169.79
Note 2
Cost of Sales
Particulars 2018 2019 2020 2021 2022
Direct Materials Used 175,902.49 200,437.37 226,407.59 255,723.02 288,834.04
Direct Labor 417,000.00 437,850.00 459,742.50 482,729.63 506,866.11
Manufacturing Overhead 410,824.97 446,490.53 467,168.58 491,742.15 516,214.07
Total Manufacturing Cost 1,003,727.46 1,084,777.90 1,153,318.67 1,230,194.80 1,311,914.22
Add: Finished Goods, Beg 10,037.27 10,948.15 11,642.67 12,418.37
Cost of Goods Available for Sale 1,003,727.46 1,094,815.18 1,164,266.83 1,241,837.47 1,324,332.59
Less: Finished Goods, End 10,037.27 10,948.15 11,642.67 12,418.37 13,243.33
Cost of Sales 993,690.18 1,083,867.03 1,152,624.16 1,229,419.09 1,311,089.26
Note 3
Operating Expenses
Particulars 2018 2019 2020 2021 2022
Selling Expenses
Advertising 8,928.57 9,167.86 9,413.56 9,665.84 9,924.88
Doubtful Accounts Expense 809.41 1,273.80 1,518.59 1,683.50 1,820.24
Total Selling Expense 9,737.98 10,441.66 10,932.15 11,349.34 11,745.12
Administrative Expense
13th Month Pay 36,000.00 37,800.00 39,690.00 41,674.50 43,758.23
Employer benefits-Office - - - - -
Depreciation-Office 1,526.67 1,526.67 1,526.67 1,526.67 1,526.67
Office Utilities 15,108.56 15,919.86 16,793.55 17,735.35 18,751.57
Maintenance Expense- Office 1,684.20 1,729.33 1,775.68 1,823.27 1,872.13
Repairs Expense-Office 1,920.00 1,971.46 2,024.29 2,078.54 2,134.25
Permits and Licenses 9,490.00 8,990.00 8,990.00 8,990.00 8,990.00
Office Supplies 3,820.76 3,923.16 4,028.30 4,136.25 4,247.11
Office Rent Expense 21,428.57 45,000.00 47,142.86 49,285.71 51,428.57
Total Administrative Expense 54,978.75 79,060.47 82,281.34 85,575.80 88,950.29
Operating Expenses 64,716.73 89,502.13 93,213.48 96,925.14 100,695.41
100
Note 4
Accounts Receivable
Particulars 2018 2019 2020 2021 2022
Accounts Receivable, Beg 40,470.29 63,690.09 75,929.57 84,175.22
Credit Sales (Inclusive of VAT) 404,702.91 596,430.61 695,605.57 765,822.60 825,943.70
Total 404,702.91 636,900.91 759,295.66 841,752.17 910,118.92
Less: Collection(90%) 364,232.62 573,210.81 683,366.10 757,576.95 819,107.02
Accounts Receivable, End 40,470.29 63,690.09 75,929.57 84,175.22 91,011.89
Less: Allowance for U/A(2%) 809.41 1,273.80 1,518.59 1,683.50 1,820.24
Accounts Receivable, Net 39,660.89 62,416.29 74,410.97 82,491.71 89,191.65
Note 5
Merchandise Inventory - Ending
Particulars 2018 2019 2020 2021 2022
Raw Materials 1,776.79 2,024.62 2,286.95 2,583.06 2,917.52
Finished Goods 10,037.27 10,948.15 11,642.67 12,418.37 13,243.33
Merchandise Inventory 11,814.07 12,972.77 13,929.61 15,001.44 16,160.84
Note 6
Property, Plant and Equipment
Particulars 2018 2019 2020 2021 2022
Factory Equipment 16,000.00 16,000.00 16,000.00 16,000.00 16,000.00
Accumulated Depreciation 800.00 1,600.00 2,400.00 3,200.00 4,000.00
Net Book Value 15,200.00 14,400.00 13,600.00 12,800.00 12,000.00
Factory Furnitures and Fixtures 7,900.00 7,900.00 7,900.00 7,900.00 7,900.00
Net Book Value 7,110.00 6,320.00 5,530.00 4,740.00 3,950.00
Office Equipment 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Net Book Value 8,100.00 7,200.00 6,300.00 5,400.00 4,500.00
Office Furniture & Fixtures 9,400.00 9,400.00 9,400.00 9,400.00 9,400.00
Net Book Value 8,773.33 8,146.67 7,520.00 6,893.33 6,266.67
Total 39,183.33 36,066.67 32,950.00 29,833.33 26,716.67
Note 7
Accounts Payable
Particulars 2018 2019 2020 2021 2022
Accounts Payable, Beg 19,700.28 24,221.10 27,554.25 31,141.68
Purchases 199,800.00 225,670.10 254,889.87 287,893.01 325,169.40
Less: Purchase Discount(2%) 2,797.20 3,159.38 3,568.46 4,030.50 4,552.37
Net Purchases 197,002.80 222,510.72 251,321.41 283,862.51 320,617.02
Total 197,002.80 242,211.00 275,542.51 311,416.76 351,758.70
Less: Payment(90%) 177,302.52 217,989.90 247,988.26 280,275.08 316,582.83
Accounts Payable, End 19,700.28 24,221.10 27,554.25 31,141.68 35,175.87
101
Note 8
Projected Partners' Share In Net Income
Net Income 2018 Castillo Bacayo Total
5% of Net Income before Bonus 5,857.93 5,857.93
Salary 180,000.00 162,000.00 342,000.00
Remaining Profits -115,349.62 -115,349.62 -230,699.25
Total 70,508.31 46,650.38 117,158.69

Salary 189,000.00 170,100.00 359,100.00
Remaining Profits 86,031.89 86,031.89 172,063.78
Total 302,987.88 256,131.89 559,119.77

Salary 198,450.00 178,605.00 377,055.00
Total 416,656.23 358,074.69 774,730.92

Salary 208,372.50 187,535.25 395,907.75
Total 481,967.37 416,220.72 898,188.09

Salary 218,791.13 196,912.01 415,703.14
Total 529,316.74 458,068.37 987,385.11
Note 9
Margin of safety
Year Sales BEP Peso Sales Margin of Safety
2018 1,175,565.60 859,165.26 316,400.34
2019 1,732,488.93 728,812.68 1,003,676.25
2020 2,020,568.56 718,983.94 1,301,584.62
2021 2,224,532.32 736,652.29 1,487,880.03
2022 2,399,169.79 760,440.48 1,638,729.31
102
Note 10
Margin of Safety Ratio
Year MOS Sales Margin of Safety
2018 316,400.34 1,175,565.60 0.27
2019 1,003,676.25 1,732,488.93 0.58
2020 1,301,584.62 2,020,568.56 0.64
2021 1,487,880.03 2,224,532.32 0.67
2022 1,638,729.31 2,399,169.79 0.68
Note 11
Working Capital to Asset Ratio
Year Working Capital Total Assets Ratio
2018 354,543.62 432,969.10 0.82
2019 726,210.71 817,581.74 0.89
2020 1,196,656.64 1,294,281.85 0.92
2021 1,672,402.45 1,774,354.65 0.94
2022 2,124,980.05 2,230,857.64 0.95
Note 12
Defensive Interval Ratio
Cash Flow from
Year Operating Activities Current Liabilities Ratio
2018 108,042.55 39,242.15 2.75
2019 554,384.54 55,304.36 10.02
2020 774,266.91 64,675.21 11.97
2021 899,595.85 72,118.87 12.47
2022 989,684.48 79,160.92 12.50
103
APPENDICES
104
APPENDIX A
NAME RESERVATION
105
APPENDIX B
ARTICLES OF PARTNERSHIP
OF
MEI’ ZCHIN MANUFACTURING COMPANY
(ARTICLES OF PARTNERSHIP AND GENERAL PARTNERSHIP)
KNOW ALL MEN BY THESE PRESENTS:
That we, Ms. Gracelyn R. Castillo (single/ married/ widow), and Ms. Meliza N. Bacayo (single/
married/ widow) all Filipinos, of legal ages, and residents of Batangas, Philippines, have on this
day, covenanted to established a general partnership, in accordance with the laws of the
Republic of the Philippines, under the following terms and conditions:
1. The name of this Co-Partnership shall MEI’ ZCHIN Manufacturing Company. And it shall
exist for 2017-2021 (5) years from the execution of this instrument, with the right of transfer or
retirement of any partner provide written notice and approval are made to and by the others;
2. That the names and addresses of the respective co-partnecayors are as follows:
Name Address
Ms. Gracelyn R. Castillo (Partner) Purok 5, Conde Labac, Batangas City
Ms. Meliza N. Bacayo (Partner) Banay-banay 1st, San Jose Batangas
3. That the initial capital of this Co-Partnership shall be Php 375,000.00 Philippine currency,
broke down, in contributions, as follows:
Name Contribution
Ms. Gracelyn R. Castillo Php 187,500.00
Ms. Meliza N. Bacayo Php 187,500.00
4. That the purpose(s) for which this partnership is established is to produce and manufacture of
wooden tealight candle holders that meet customer satisfaction.
5. That the profits and losses shall be divided among the partners as follows:
Name
Ms. Gracelyn R. Castillo (50)
Ms. Meliza N. Bacayo (50)
IN WITNESS WHEREOF, we have set our hands this April 2, 2017 at Batangas, Philippines.
(SIGNATURES OF PARTNERS)
Ms. Gracelyn R. Castillo
Ms. Meliza N. Bacayo
SIGNED IN THE PRESENCE OF:
_______________________ ________________________
106
APPENDIX C
PRODUCT PHOTOS
107
APPENDIX D
PHOTO OF PACKAGING
108
APPENDIX E
PHOTOS OF PROCESS FLOW
(Woodcarver)
Preparation of Tools and Materials
Cutting the wood
Assembling the wood
109
Carving the Design
Cutting the wood for Wooden Tealight Candle Holder
Cutting the Letter for design in Wooden Tealight Candle Holder
Finish Product
110
(Painter)
Prepare all the Materials and the Design for Wooden Tealight Candle Holder
Painting the Letter Design
Drying the Letter Design
Put Glazing Putty to the whole body of the Wooden Tealight Candle Holder.
111
Paint the Wooden Tealight Candle Holder
Finish Product
112
APPENDIX F
PRODUCT LINE
113
APPENDIX G
COMPANY LOGO
114
APPENDIX H
FLYERS
115
APPENDIX I
FACEBOOK ACCOUNT
116
APPENDIX J
INSTAGRAM ACCOUNT
117
APPENDIX K
FACTORY AND PLANT LAYOUT
MEI’ ZCHIN Manufacturing Company

Factory and Plant Layout
118
APPENDIX L
LOCATION MAP
MEI’ ZCHIN
Manufacturing
Company
Barangay 10, D. Silang Street, Batangas City 4200

Philippines
119
APPENDIX M
SURVEY QUESTIONNAIRE

Alangilan, Batangas City
School of Economics Business and Accountancy
Survey Questionnaire
Mùzhì : Wooden Tealight Candle Holder
Dear Respondents:
Good Day! We are 4th Year Business Administration students of Westmead

International School currently enrolled in RESEARCH II. We need to conduct a survey
for our business plan as part of our course requirement. In view of this, we would like to
request a few minutes of your time to answer our questionnaire. Rest assured that all the
information gathered will be used for academic purpose only.
Thank you and God Bless you!

The researchers:
____________________ _____________________
Meliza N.Bacayo Gracelyn R. Castillo
I. Respondent’s Profile
Name (Optional):________________________________________________________
Address:______________________________________________________________
Occupation:____________________________________________________________
General Direction: Please put a check (/ ) on the space provided for your answer.
Status: ( ) Single ( ) Married
Age: ( ) 18-22 ( ) 28-32
( ) 23-27 ( ) 33-above
Educational Level: ( ) High School Graduate ( ) College Graduate
( ) Vocational ( ) Post Graduate

120
Family Monthly Income: ( ) 15,000.00-20,000.00
( ) 21,001.00-25,000.00
( ) 26,001.00-30,000.00
( ) 31,001.00 and above
II. Related Product Information
1. Do you have tealight candle holders?
( ) Yes ( ) No
If no, proceed to Part III
2.What factors do you consider in buying tealight candle holders?
You may check more than one.
( ) Materials used ( ) Size ( ) Color and style
( ) Brand ( ) Design ( ) Function
( ) Quality ( ) Price ( ) Others,pls.specify______
3. How many do you buy at any one time?

( ) 1-2 ( ) 3-4 ( ) 4 and above
4. Where do you usually buy your tealight candle holders?
( ) Supermarket ( ) Department Store
( ) Online Shop ( ) Dry Goods Store
( ) Direct Sellers ( ) Others, pls. specify_____________
5. What type of tealight candle holder do you have?
( ) Glass Candle Holder ( ) Wooden Candle Holder
( ) Metal Candle Holder ( ) Ceramic Candle Holder
III. Product Information
6. Have you seen a product like this?
( ) Yes ( ) No
121
7. If Yes, where did you see it?
( ) Online Shop ( ) Department Store
( ) Supermarket ( ) Dry Goods Store
( ) Others,pls. specify_______
8. If this product will be available in the market are you willing to buy it?
( ) Yes ( ) No
9. At what price are you able to buy this product?
( ) 100.00-150.00 ( ) 201.00-250.00
( ) 151.00-200.00 ( ) 251.00-300.00
10. What other designs do you prefer to see on our product?
( ) Animals Designs ( ) Landscape Paint Designs
( ) Quotations ( ) Letters, Numbers and Shapes Designs
( ) Others, pls. specify_________
11. What qualities of our product attract you to it?
( ) Materials used ( ) Design
( ) Brand ( ) Price
( ) Quality ( ) Function
( ) Size ( ) Others,pls. specify_______
12.What type of packaging do you prefer for our product?
( ) Plastic ( ) Box
( ) Paper Bag ( ) Others,pls. specify_______
13. For what purpose would you buy our product?
( ) For own use ( ) As a gift ( ) Others, pls. specify___
14. How would you rate our product?
( ) Excellent ( ) Above average
122
( ) Average ( ) Poor
15. Would you recommend our product to others?
( ) Yes ( ) No
16. In your own opinion, what would be the best way to advertise this product?
( ) Word of Mouth ( ) TV Advertisement ( ) Internet
( ) Tarpaulin ( ) Magazine ( ) Fliers and poster
( ) Others, pls. specify_________
Comments and Suggestions:
_______________________________________________________________
___________________________________________________________________
______________________.
_______________________
Respondents Signature
123
APPENDIX N
SURVEY RESULT
I. Customer Profile
Status Number of Respondents Percentage

Single 166 41.50 %
Married 234 58.50 %
Total 400 100 %
Age Number of Respondents Percentage

18-22 47 11.75 %
23-27 71 17.75 %
28-32 64 16 %
33-above 218 54.5 %
Total 400 100 %
Educational Level Number of Respondents Percentage

High School Graduate 70 17.50 %
Vocational 22 5.50 %
College Graduate 280 70 %
Post Graduate 28 7%
Total 400 100 %
Family Monthly Number of Respondents Percentage

Income
15,000.00-20,000.00 246 61.50 %
21,001.00-25,000.00 54 13.50 %
26,001.00-30,000.00 30 7.50 %
31,001.00 and above 70 17.50 %
Total 400 100 %
124
II. Related Product Information

1. Do you have tealight candle holders?
If no, proceed to Part III.
Category Number of Respondents Percentage
Yes 82 20.50 %
No 318 79.50 %
Total 400 100 %
2. What factors do you consider in buying tealight candle holders?

Materials used 21 15.22 %
Brand 8 5.80 %
Quality 17 12.32 %
Size 16 11.59 %
Design 20 14.49 %
Price 34 24.64 %
Color and Style 11 7.97 %
Function 11 7.97 %
Others, pls. specify 0 0%
Total 138 100 %
3. How many do you buy at any one time?

1-2 42 51.22 %
3-4 25 30.49 %
4 and above 15 18.29 %
Total 82 100 %
4. Where do you usually buy your tealight candle holders?

Supermarket 21 25.61 %
Online Shop 9 10.98 %
Direct Sellers 7 8.54 %
Department Store 32 39.02 %
Dry Goods Store 12 14.63 %
Others, pls. specify 1 1.22 %
Total 82 100 %
125
5. What type of tealight candle holder do you have?

Glass Candle Holder 29 30.20 %
Metal Candle Holder 10 10.42 %
Wooden Candle Holder 7 7.30 %
Ceramic Candle Holder 50 52.08 %
Total 96 100 %
III. Product Information

6. Have you seen a product like this?
Yes 89 22.25 %
No 311 77.75 %
Total 400 100 %
7. If Yes, where did you see it?

Online Shop 30 33.71 %
Supermarket 10 11.24 %
Department Store 47 52.81 %
Dry Goods Store 0 0%
Total 89 100 %
8. If this product will be available in the market are you willing to buy it?
Yes 373 93.25 %
No 27 6.75 %
Total 400 100 %
9. At what price are you able to buy this product?

100.00-150.00 341 85.25 %
151.00-200.00 38 9.50 %
201.00-250.00 9 2.25 %
251.00-300.00 12 3%
Total 400 100 %
126
10. What other designs do you prefer to see on our product?

Animals Designs 36 9%
Quotations 86 21.50 %
Landscape Paint Designs 96 24 %
Letters, Numbers and 176 44 %
Shapes Designs
Total 400 100 %
11. What qualities of our product attract you to it?

Materials used 45 11.25 %
Brand 6 1.50 %
Quality 80 20 %
Size 13 3.25 %
Design 184 46 %
Price 25 6.25 %
Function 47 11.75 %
Total 400 100 %
12. What type of packaging do you prefer for our product?

Plastic 0 0%
Paper Bag 112 28 %
Box 277 69.25 %
Total 400 100 %
13. For what purpose would you buy our product?

For own use 121 30.25 %
As a gift 279 89.75 %
Total 400 100 %
127
14. How would you rate our product?

Excellent 194 48.50 %
Average 139 34.75 %
Above Average 60 16.25 %
Poor 2 0.50 %
Total 400 100 %
15. Would you recommend our product to others?

Yes 372 93 %
No 28 7%
Total 400 100 %
16. In your own opinion, what would be the best way to advertise this product?
Word of Mouth 56 14 %
Tarpaulin 26 6.50 %
TV Advertisement 64 16 %
Magazine 5 1.25 %
Internet 209 52.25 %
Fliers and poster 35 8.75 %
Total 400 100 %
128
APPENDIX O
CURRICULUM VITAE
129
CASTILLO, GRACELYN ROSALES

Address: Purok 5 Conde Labac, Batangas City
Contact #: 09126146155
Email Address: gcastillo350@yahoo.com
CARRER OBJECTIVE: To work with eagerness and be effective to the position
assigned and be part of the goal of the organization. To performed my best to attain
the needs of the organization.
EDUCATION Westmead International School 2013-2018

Alangilan Batangas City
Bachelor of Science in Business Administration
Major in Marketing
Conde Labac National High School 2009-2013

Conde Labac Batangas City
INTERNSHIP Pag-IBIG Fund Batangas Branch MSB July 31, 2017-

TRAINING Kumintang Ibaba, Batangas City Nov. 17, 2017
 Responsible for encoding; logging,
photocopying;Assisting the Clients;Updating
the Pag-IBIG member; Recieving paper
from the Counter to department of STL,
Emailing of the files to the Pag-IBIG Fund
Calamba for approval of their loan
Transmitting the documents with other
department.
UNDERGRADUATE
RESEARCH Muzhi: Wooden Tea Light Candle Holder
PAPER
Secretary of Youth Ministry 2017-Present
Active Member of Dance Ministry 2013-Present
EXTRA
Chairperson of Children Ministry 2017-Present
CURRICULAR
FIRM Worship Center
ACTIVITIES
D. Silang Street Batangas City
Active Member 2013-2018

Association of Business Major
Westmead International School,
130
Team Leader 2017

Association of Business Major
SEBA Week
ROTC Member 2013-2014

Megaheights, Alangilan, Batangas City
PRO 2013-2014
Class Officer Organization
AWARDS 1st Runner -up (Duet) December 3, 2017

RECEIVED FIRM Got Talent
FIRM Worship Center
D. Silang Street, Batangas City
Champion (Yell) December 2017

Westmead @11 Foundation
Megaheights, Alangilan, Batangas City
Six Sigma White Belter March 11, 2017

Six Sigma Online Aveta Business Institute
Student
Over-all Champion SEBA Week 2017 February 17, 2017

(Green Team)
Participant
One of the Best Employees May 16, 2016

for PKI Top Line
Km. 75 Pres. J.P. Laurel Highway
Brgy. Inosluban, Lipa City, Batangas
Casual Employee
1st Runner-up Declamation, August 2015

CTE Week (Bilanggong Hukbo)
Participant
131
1st Runner-up Sabayang Pagbigkas, August 2015

CTE Week
Participant
SEMINARS CODEB 4A 11th Business Student Summit

ATTENDED “Building Business Leaders through Virtual
Enterprise and Mobiliity
Quezon Convention Center, Lucena City
September 22, 2017
6th Marketing Forum

YOUTHPRENEUR: Learn How to Start your
Business without Capital
Lemery Colleges
August 30, 2017
7th Annual Business Forum

E-Business: Revolutionizing the Global
Market
February 03, 2017
Relationship Goals
Freedom Hall, SHL Building, Lyceum of the
Philippines University, Capitol site Batangas City
December 2016
PakGanern
Lemery, College
December 2016
6th Business and Hospitality Management

Forum: Shaping the 21st Century
Managers
February 2016
5th Business and Economics Forum:

ASEAN Integration and Inclusive
Growth: Preparing for a Change in Philippine Business and
Tourism, January 2015
132
PERSONAL Date of Birth: October 06, 1996

BACKGROUND Place of Birth:Wasig Mansalay, Oriental Mindoro
Age: 21
Sex: Female
Religion: Born Again Christian
Status:Single
SKILLS:
Dedicated and Hardworking Individual
Team player and able to do multitask
Knowledgeable in Internet Research Tools and Marketing
Adapt easily to new concept and responsibilities
Skills on Microsoft Office: MS Word, MS Excel, PowerPoint
CHARACTERISTICS:
Active, Hardworking, Responsible, Flexible, Trustworthy
LANGUAGES:
Filipino, English, Basic Nihongo, Basic Korean
REFERENCES:
Dr. Marites D. Manlongat
VP- Academic Affairs
College Dean/Program Chairman
Westmead International School, Alangilan, Batangas City
723-9012
Mrs. Sampaguita Arias Macalalad

Foreman/Supervisor in Pilipinas Kyoritsu Inc. “PKI”
Km. 75 Pres. J.P. Laurel Highway
Brgy. Inosluban, Lipa City, Batangas
09088806234
I HEREBY CERTIFY THAT THE FOREGOING ANSWERS ARE TRUE AND

CORRECT TO THE BEST OF MY KNOWLEDGE BELIEF AND ABILITY.
_______________________________
GRACELYN ROSALES CASTILLO
133
MELIZA, BACAYO N.
Banay-Banay 1st San Jose Batangas
Contact No.: 09302643405
Email Address: Melissa_bacayo@yahoo.com
CARRER OBJECTIVE: To work with eagerness and be effective to the position

assigned and be part of the goal of the organization. To performed my best to attain
the needs of the organization.
EDUCATION Westmead International School 2014-2018

Alangilan Batangas City
Bachelor of Science in Business Administration
Major in Marketing
Taysan National High School 2009-2010
Banay- banaay 1st San Jose , Batangas
INTERNSHIP
Soro-Soro Ibaba Developmet Cooperative
TRAINING
Soro Soro Ibaba, Batangas City
 Responsible for encoding; logging, photocopying;Assisting
the Clients;Updating the Sidc Code Number of
Employees;Checking the Log Book;
UNDERGRADUATE
RESEARCH Muzhi: Wooden Tea Light Candle Holder
PAPER
EXTRA Gawad Kabataan Scholar
CURRICULAR 2015 – 2018
ACTIVITIES ORGANIZATION
Class P.I.O
June 2016 – March 2017
Youth Camp Leader
San Jose
AWARDS
RECEIVED 1st place in the Declamation
2nd place in the Declamation
Six Sigma White Belt Aveta Business Institute
Mardigrass Dance Competition
2nd Place
Member
Association of Business Majors
134
June 2015 – March 2018

CODEB 4A 11th Business Student Summit
“Building Business Leaders through Virtual
Enterprise and Mobiliity
Quezon Convention Center, Lucena City
September 22, 2017
6th Marketing Forum
YOUTHPRENEUR: Learn How to Start your
Business without Capital
Lemery Colleges
SEMINARS August 30, 2017
ATTENDED
7th Annual Business Forum
E-Business: Revolutionizing the Global
Market
February 03, 2017
Relationship Goals
Freedom Hall, SHL Building, Lyceum of the
Philippines University, Capitol site Batangas City
December 2016
PERSONAL Date of Birth: March 07, 1996

BACKGROUND Place of Birth: San Francisco, Occidental Mindoro
Age: 21
Sex: Female
Status: Single
SKILLS:
Dedicated and Hardworking Individual
Team player and able to do multitask
Knowledgeable in Internet Research Tools and Marketing
Adapt easily to new concept and responsibilities
Skills on Microsoft Office: MS Word, MS Excel, PowerPoint
CHARACTERISTICS:
Active, Hardworking, Responsible, Flexible, Trustworthy
LANGUAGES:
Filipino, English, Basic Nihongo, Basic Korean
Character References are available upon request.
____________________________
MELIZA N. BACAYO
135

Business Plan

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Business Plan

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Westmead International School

School of Economics, Business and Accountancy

company name is MEI’ ZCHIN Manufacturing Company, which is derived from

pronunciation of ZCHIN. The proposed product brand name is Mùzhì. It is a

come in a wide range of styles, colors, and shapes. Holders have an

appropriately sized cup for tealight candles, either scented or unscented.

Mùzhì: Wooden Tealight Candle Holder

Nature of the Business

The business is registered in the Securities and Exchange Commission

innovative approach to a wooden type project at a very affordable price. The

counter of living rooms or bedrooms. Prospective customers can also purchase it

collecting tealight candles and lighting them for relaxation purposes.

MEI’ ZCHIN Manufacturing Company also offers customization of the

product. Originally, the product is carved with the letters L, O, V, and E

Mùzhì: Wooden Tealight Candle Holder

depending on the letters and design to be added.

MEI’ ZCHIN Manufacturing Company will make use of a sustainable wood

designs and ideas to keep up with the market trends.

MEI’ ZCHIN Manufacturing Company will offer a product carrying the

the Filipino people through the manufacturing of quality wooden products.

will remain still and will stand firmly in its place.

Mùzhì: Wooden Tealight Candle Holder

The MEI’ ZCHIN Manufacturing Company offers the Mùzhì: Wooden

designs, quotations designs, landscape paint designs, letters, numbers and

Company Vision, Mission, Goals and Objectives

objectives. It represents MEI’ ZCHIN Manufacturing Company’s vision, its extent

intends to introduce and achieve in the market.

MEI’ ZCHIN Manufacturing Company is a premier manufacturer of

wooden tealight candle holders in Batangas City, exceeding industry standards

MEI’ ZCHIN Manufacturing Company continually strives for excellence by

building and maintaining a team of professionally skilled and highly motivated

Goals and Objectives

MEI’ ZCHIN Manufacturing Company aims to improve overall

 To enhance customer satisfaction.

 To improve product quality.

 To implement new equipment to decrease process, time and production

 To improve employee skills.

Innovation: The company will develop the features and purposes of

Wooden Tealight Candle Holder that will exceed costumers’ expectation.

Integrity: It is consistency of actions, values, methods, measures,

principles, expectations and outcomes. MEI’ ZCHIN Manufacturing Company will

strive to continually observe the best way to improve its production .

Leadership: It can be described as the process of social influence in

Quality: It is the measure of excellence or state from defects and

deficiencies and significant variations. Priority to quickly respond to difficult

situations with care in cases of complaints regarding the product.

Location of the Business

In starting a business, location is one of the key factors to consider. The

proponents have determined the location by assessing and considering the

accessibility and convenience of the target market.

The MEI’ ZCHIN Manufacturing Company site will be located at Barangay

the administrators. This eventually will prevent delays and mismanagement of

time, leading towards a proper dissemination of information and giving updates to

the products will be delivered and displayed on consignment basis.

Mùzhì: Wooden Tealight Candle Holder

To sum up, MEI’ ZCHIN Manufacturing Company will be operated by the

registered under General Partnership at the Securities and Exchange

Commission (SEC). The office and manufacturing site will be located at

Barangay 10, D. Silang Street, Batangas City.

Wooden Tealight Candle Holder. The product is said to be unique because it is

beautifully carved and is made of Palochina wood. The company is dedicated to

deliver quality products and excellent service for customer satisfaction.

The company will also distribute its product, on consignment basis, to SM