Executive Summary The outlet will be registered under the name Ye Zi and it will be a general partnership form of business

ss organization. The company store will be located at 800 Villacor Village Modesta Street Brgy Langka Meycauyan, Bulacan, Philippines. Through the ideas of partners advocating the company its proposed product has a unique idea on launching new innovation of coconut water. There will be a variety of add-ons to choose from.

The companys target market is the Shoe Marts community; our primary customers are the mall goers. The business will operate starting May 30, 2013. Operation starts at 10 in the morning and ends at 9:00 in the evening, the product will be manufactured every day.

Business Description

A. Company Name, Address, Form of Ownership

A business is a serious activity requiring time and effort to deal with transactions especially of an economic nature. The company will operate under the name A&M Company. A&M stands for Ariane & Mica because of the partnership between the two young

entrepreneurs. The business is meant to sell organic products that will help people to live a healthy life.

A&M

company

is

general

partnership

of

two

young

entrepreneurs that will contribute equal capital and will follow an organizational structure headed by a General Manager.

The manufacturing location will take place within 800 Villacor Village Modesta Street Brgy Langka Meycauyan, Bulacan. The business intends to be one of the leading retailers of organic products.

The company aim to produce organic products that are healthy. It intends to come up with ideas that can be used as alternatives for medicine and products that will not only satisfy the customers hunger and thirst but will also beneficial to their health. B. Statement of Mission, Vision and Goals

Vision A&M Companys vision is to be one of the best producers of organic products in the food industry through wide variety of organic

products, quality services and relationship. The company aspires to be an innovative and a customers preferred producer and seller by building a trustworthy and reputable name.

Mission The company will achieved its vision by creating a new experience to usual and popularly known food and drinks. We will ensure to provide healthy refreshments at a very reasonable price. The company will maximize our presence in direct selling to numerous stores, malls and other business enterprises.

The company will be the best place to work and the most admired company as we will do our best to establish an edging leadership through our passion to build a mutually profitable

relationship with partners and be socially responsible, ethical company being emulated as a model of success.

Goals A & M company goal is to be known as one of the best producer of organic product that provides exceptional quality and service in local food industry. We desire to remain results-oriented and

performance-driven as a result of profitability as a step of success. We

also aim to contribute to our communities and environment by being socially responsible.

COMPANY LOGO

MAJOR ASSUMPTIONS Marketing Plan A. The company will innovate the product by adding different twist in coconut water like having different add-ons. This will be based from our own market intelligence research and survey to mall goers.

B.

To be able to get our target market, the company will promote and cater potential customer inside the mall. This will be done through distribution of flyers, setting up tarpaulin and posters, and advertisements via social networking sites.

C.

Promotion will be constantly spread in order to endorse the product.

Technical Plan A. B. Ye Zi will be produced manually by the production staff. The operation schedule for the selling of the product will be mall hours which are from 10 am up to 9 pm daily. C. Ye Zi will be offered in different sizes such as follows: 12 oz (small), 16 oz (Medium) and 22 oz (large) and will be served in plastic cups. Add-ons will also be available if the customer desire.

D.

There will be a variety of add-ons such as nata de coco, sago, almond jelly, and gulaman. The customer can choose any or a combination of the following according to their own preference.

E.

Actual production will be daily to maintain the freshness of the juice.

Organization and Management Plan A. A&M Company will start its operation by hiring and assigning employees to their respective tasks. The general manager along with the department heads shall be responsible for contracting suppliers that will provide the necessary requirements for the production and the delegation of duties as well as shift-schedule of employees.

Financial Plan A. B. C. D. E. F. A&M Company is a form of partnership. It will be registered in the Department of Trade and Industries. We will be renting a space in a shopping mall. All good are sold within a day. All purchases and sales will be on cash basis. A&M Company will open a bank account at Banco De Oro (BDO) in Quezon City(SM City North EDSA A) Branch with a maintaining balance of 20,000. G. The tools & equipment life expectancy will be a maximum of 5 yrs. H. The product will be sold for XX for any choice of product and size. I. The total capital contribution is 80,000 and will be divided among 2 partners. Each partner will contribute 40,000. J. The contribution to the capital is through investment of each partner and there will be no borrowing and withdrawal. K. L. The company will deposit to the bank at least once a month. The product has a mark-up of 20% per unit.

MARKETING PLAN

A. Market Description The target market is the mall communities comprise of the mall goers and employees within the vicinity of the mall. B. Competition Analysis a. Direct Competitor The direct competitors are the Buko ni Fruitas and Louies Buko who had already established their names in the market. Buko ni Fruitas offers Buko Juice, Buko Shake, Classic Buko Desserts, Buko Loco and Buko Smoothies; while Louies Buko offers Fresh Buko Juice. b. Indirect Competitor The indirect competitors are other stalls that sell other kinds of refreshments and they are as follows: Orbitz pearl shake, Green fresh, Healthie fresh fruit shake, Fruitas, and Quickly. Who also had established their own identity in the food industry.

Competitors Analysis

Competitors OPPURTUNITIES WEAKNESSES STRENGTHS THREATHS might not like the idea for have high prices. the coconut water. en for franchising. They are operating of havingyears. Their products many add-ons to stomers mightjust sell plain coconut in the market. They had established new coconut water innovations. They like the their names water. They got many outlets.

10

C. Marketing Strategies a. Product Positioning To mall goers and employees who cannot survive their day at malls without drinking beverage. Ye Zi is a refreshments that creates new look and more flavorful taste of coconut water that absolutely will dissipate Filipinos thirst and secretly help them live a healthy life style. b. Product Strategies i. Product A&M Company innovate a new way of enjoying coconut water by combining it with add-ons like almond jelly, tapioca balls (sago), and nata de coco. It allows the customers to pick any or a combination of add-ons that he or she wants according to their own preference. The tagline will be Live Healthy, Drink Ye Zi because it shows that the products are good for our health and that the company promotes healthy living.

11

ii.Product Logo

iii.Branding/ Labeling Using Ye Zi as the brand name can greatly add to products success and it will also helps the foreign consumers especially Chinese to identify and remember the products among the others. A&M company came up with the brand name Ye Zi because we would like to promote one of the best fruits that Philippines have despite of being a Chinese-Filipino Young entrepreneurs.

12

iv.Packaging A&M Company will use a clear plastic cup with lead to see the attractive appearance of the refreshments that we will advertise. It will also help us promote our exceptional way of serving coconut water. We will also be using straw spoon to have a unique approach compared with the other competitors who sell refreshments.

13

Pricing Strategies The management of Ye Zi considers the price of their products since the consumers will be mall goers and employees. The company values each and every customers satisfaction so they came up with innovated delectable healthy products with a very reasonable price. Computation of Production Cost per Unit

COST PER MONTH DIRECT MATERIALS DIRECT LABOR RENTAL INDIRECT MATERIALS (ROI in 3 months) TOTAL PRODUCTION COST P 29, 800.00 P 10, 000.00 P 3, 300.00 P 14, 584.00/3 = P 4,861.33 P 47, 691.33

Total ProductionCost P 47,691.33 = Units producedper month 2,000 Unit Cost = 23.98 Unit Cost =
Mark up (20%) = 4.80 Selling Price = 28.78 29.00 For Add-ons:

Unit Cost =

P 7, 960 2,000 = 3.98

Mark-up = 0.796 Selling Price = 4.78 5.00

14

c. Selling Strategy The customers can only buy it in SM malls hall way to cater all kinds of mall goers. They can also customize the add-ons they would like to have in the size they want to purchase. d. Placement Ye Zi will be placed inside the SM Malls. e. Promotions A& M Company will advertise the product using the following promotional tools: Personal selling will be used during the operation hours of the business Order Taking Tarpaulin & Flyers Word of mouth Social networking sites like Facebook

15

Companys SWOT Analysis

16

STRENGTHS Products are healthy. Organics are used to sell as their products. Can target all kinds of people due to its location. New way observing usual foods.

WEAKNESSES The company is new in the market. People might afraid to try the products.

OPPORTUNITIES The market will like the products and service the company provides. The company can open many more branches on other places.

THREATS Due to economic status it can affect consumers to buy the products. There many competitors not only in the same location itself but also the unregistered one.

Computation of Direct and Indirect Materials Cost

Tools and Supplies Direct Materials ITEM Coconut Fruit Fresh Milk Sugar QUANTITY 350 pieces/week 15liters/week 10 kilograms PURPOSE Source of the juice and shredded meat Used to add flavor on the juice. Used as sweetener TOTAL COST P 5,250.00 P 1,050.00 P 400.00

17

Plastic Cups with lids Spoon Straw

500 pieces/week 500 pieces/week

Used as the holder of the juice being sold. Used to suck the juice from the plastic cup TOTAL COST

P 500.00 P 250.00

P 7,450

Add-ons ITEM Almond Jelly Nata de Coco Gulaman or Gelatin Pearl Tapioca or Sago QUANTITY 20 cans/week 15 kilograms/week 15 kilograms/week 15 kilograms/week PURPOSE Used as add-ons Used as add-ons Used as add-ons Used as add-ons TOTAL COST TOTAL COST P 1000.00 P 450.00 P 300.00 P 240.00 P 1, 990.00

Indirect Materials ITEM Butchers Knife Calculator with QUANTITY 1 1 PURPOSE Used to peel off and cut the coconut fruit Used to calculate total TOTAL COST P 250.00 P 2, 500.00

18

Receipt Output Can Opener Chefs Knife Coconut Stripper Container Cutting Board 1 1 1

amount of sales and to print our receipt. Used to open cans of almond jelly Use to slice add-ons such as gulaman or gelatin. Used to scrape the coconut meat from the shell and shred it into strips. Used to keep and store the add-ons Used together with the knife in slicing add-ons and dividing the coconut into halves. Serve as the store Used as a container of the coconut juice. Used to open the box of fresh milk. Used to record attendance of employee and all transactions made. Used for measuring add-ons. Used in writing transactions in the logbook. Used to wipe dirt. Given to customers to clean their mouth. Used to temporarily store waste materials. TOTAL COST P 89.00 P 90.00 P 40.00

1 1

P 350.00 P 100.00

Food Cart Juice Dispenser Kitchen Shears Logbook

1 1 1 1

P 9,000.00 P 1,500.00 P 125.00 P 25.00

Measuring Cup Pen Table Napkin

5 3 5 packs

P 100.00 P 30.00 P 85.00

Trash Can

P 300.00 P 14, 584

19

20

INDIRECT and DIRECT MATERIALS DESCRIPTION

INDIRECT MATERIALS

BUTCHERS KNIFE

A heavy-duty knife with a broad sharp blade used for cutting meat

CALCULATOR with RECEIPT OUTPUT

A calculator that print out receipt.

CAN OPENER A device for cutting cans open. A modern opener with a combination of a rotating cutting wheel and a serrated wheel CHEF S KNIFE

21

Also known as a cook's knife or French knife, the chef's knife is an allpurpose knife that is curved to allow the cook to rock the knife on the cutting board for a more precise cut. The broad and heavy blade also serves for chopping bone instead of the cleaver making this knife the all purpose heavy knife for food preparation. Chef's knives are most commonly available between 15 cm and 30 cm (6 and 12 inches), though 20 cm (8 inches) is the most common size.

COCONUT STRIPPER

A utensil made of stainless steel used to shred coconut or melon into strips.

CONTAINER Clear, closable condiment cooler tray keeps condiments fresh for hours. Features easy view body with refillable bottom ice tray and five upper condiment compartments. Hinged lid traps the cold and keeps out bugs.

CUTTING BOARD A cutting board is kitchen utensil used in conjunction with a knife. It is a flat surface, generally made of wood, plastic or glass (glass are less common because they dull the blade;

22

used more for decoration), on which to cut food and which protects counter tops and knives from damage.

FOOD CART A food cart is a mobile kitchen that is set up on the street to facilitate the sale and marketing of street food to people from the local pedestrian traffic. Food carts are often found in large cities throughout the world and can be found selling food of just about any variety.

JUICE DISPENSER A container that allows the contents to be removed and used in convenient. It is made of stainless steel with polycarbonate jar of 8 liters.

KITCHER SHEARS Cutting instruments consisting of two blades pivoted centrally. It is m ade from stainless steel (for food hygiene and oxidization-resistance reasons and often have kitchen functionality (other than cutting) incorporated, such as bottle-cap and bottle-openers built into the handles.

LOGBOOK

23

Originally a book for recording attendance of workers and all the transactions of the business.

MEASURING CUP A measuring cup is a kitchen utensil used primarily to measure the volume of liquid or bulk solid cooking ingredients. The cup will usually have a scale marked in cups and fractions of a cup, and often with fluid measure and weight of a selection of dry foodstuffs. Measuring cups may be made of plastic, glass, or metal.

PLASTIC CUPS with LID A disposable cup with lid made out of plastic. It is used as a container to hold beverages.

PEN

24

A writing implement with a point from which ink flows

SPOON STRAW A thin plastic tube used to suck liquids into the mouth. It is a long hollow object (usually cylindrical) has a cut-away shape at one end that functions as a miniature spoon

TABLE NAPKIN

An absorbent paper usually square in shape, that is used to protect the clothes or wipe the lips and fingers.

TRASH CAN

25

A container made of plastic, stainless steel or concrete used for temporarily storing waste.

DIRECT MATERIALS
ALMOND JELLY This dish is a traditional Chinese dessert traditionally made out liquid extracted from Chinese almonds (apricot kernel) or sweet Chinese almond which is sweetened and mixed with agar served together with fruits. COCONUT FRUIT The fruit is a fibrous drupe. It consists of, from the outside in, a thin hard skin (exocarp), a thicker layer of fibrous mesocarp known as husk, the hard endocarp or the shell, the white endosperm (kernel), and a large cavity filled with liquid (water). When immature, the exocarp is usually green, Fruit shapes vary from elongated to almost spherical and weigh between 850 and 3700 g (1.98.1 lb) when mature.

FRESH MILK Fresh or Raw milk, straight from the cow, goat, buffalo or Yak, it's

26

unpasteurized, non-homogenized, unadulterated milk. Nothing added or taken out.

NATA DE COCO Translucent, jelly-like substance produced by the bacterial fermentation of coconut water.

GELATIN/GULAMAN Refers to the bars of dried seaweed used to make jellies or flan, as well as the desserts made from it The term gelatine and gulaman are used synonymously in the Philippines, although they are very different products. While gelatine is a protein, gulaman is a plantderived carbohydrate, made from seaweed.

PEARL TAPIOCA known as SAGO A starchy food made from the root of Manihot esculenta, commonly called cassava, manioc, or yuca. Pearl tapioca gets its name from its

27

shape; the cassava starch is formed into spheres ranging from about one to eight millimeters in diameter.

Time and Motion Study Production Process 1 minute

5 minutes 2 minutes

Cover it with lids. Preparation Combining of coconut water and add-ons into the container cups of materials

The total time for manufacturing Ye Zi is 8 minutes using all the

tools mentioned above and capable work to produce. There will be a total of 8 units produced by the worker for every hour, so there will be a total of 83 coconut juice produced per operating hours.

28

A. Organizational Management Plan a. Brief profile of the Owners The A & M Company is composed of two (2) partners that share their knowledge, money, idea and time to make this business venture possible and successful. The goal is to satisfy the wants and needs of our target market in a healthy manner and to build strong customer profitable relationships. Here under are the owners of the A & M Company with their short profile: Name: Ariane M. Que Address: Blk8 Lot28 Vista Verde North Executive Village, Kaybiga, Caloocan City Course: B.S. in Hotel and Restaurant Management Company Designation: CEO Name: Mica V. Lim Address: 330 Brgy. Langka Villacor Village, Modesta St., Meycauyan, Bulacan Course: B.S. in Hotel and Restaurant Management

29

Company Designation: COO b. Organizational and Job Designs Organizational Structure

CEO (Chief Executive Officer) Qualifications: Must have the desire or will to achieve. Must dare to make decisions, especially the hard ones, whether they concern layoffs or pay cuts, or other difficult strategic decisions. Integrity is consistent, willing to trust others, and care about their employees well-being. Must have a dream, mission, strategic intent, a vision and he must be able to clear that vision. Responsibilities: Setting strategy and vision Building culture. Building senior management team.

30

COO (Chief Operating Officer) Job Descriptions: Oversees all operation daily and reports to the CEO directly. Establish harmonious relations with the CEO Ensures that the business creates profit. Must have a dream, mission, strategic intent, a vision and he must be able to clear that vision.

Responsibilities: Balancing the needs of the investors, clients and employees. Manage and direct company operations to meet budget and other financial goals. Develop, establish, and direct the execution of operating policies. Ensuring smooth daily operation.

CFO (Chief Financial Officer) Job Descriptions: Oversees all company accounting practices. Directs financial strategy, planning and forecasts. Supervise investment and raising of funds for business. Studies, analyze and reports on trends, opportunities for expansion and projection of future company growth.

Responsibilities: Control the cash flow position throughout the company. Must understand all of the companys liabilities. Overseeing the budget process, collecting inputs, and comparing companys actual performance with estimates.

Production Manager Job Descriptions:

31

 Find ways to make the company more productive by providing effective methods in its operations. Prepares program budgets, facilities several programs around the company. Controls inventory. Must know how to handle problems quickly and efficiently Must have great communication skills Responsibilities: Ensures that the machinery and equipment used have the ability to produce goods and services for the clients at an acceptable standard. Ensures that quality equipments are procured within the budget. Overseeing the budget process, collecting inputs, and comparing companys actual performance with estimates.

Financial Manager Job Descriptions: Providing financial advice and support to clients and colleagues. They are financial analyst. Responsibilities: Preparation of overall financial operation. Prepares the budget and finance activities.

Marketing Manager Job Descriptions: Create, develop and manage the marketing strategy of the company. Analyze thoroughly the companys product or service within the market. Increase the market visibility of the company. Find new ways of securing more potential customers. Identify new potential market. Responsibilities: Researching and reporting on external opportunities.

32

Developing the market strategy and plan. Managing budget.

Production Staff Job Descriptions: Oversees the outlet. Must maintain the loyal customers and attract new clientele. Responsibilities: Must create a presentable and standardized product to be given to customer. Must maintain the cleanliness of the store.

Accountant Job Descriptions: Applying accounting principles and procedures to analyze financial information. Prepare accurate and timely financial reports and statements. Ensure appropriate accounting control procedures. Responsibilities: Prepare profit and loss statement and monthly closing and cost accounting reports. Compile and analyze financial information to prepare entries to accounts. Monitor and review budget, revenue, expense, payroll entries, invoices, and other accounting documents.

Sales Representative Job Descriptions: Will be the first impression of the company the prospective customers will see and so a good impression must be left on them in order to retain their patronage. Have superior knowledge of the companys products and services and be able to point the consumer to the proper department. Authority to satisfy consumer problems or questions.

33

Responsibilities: Will work on the sales floor or the customer service desk Familiar with pricing and how to ascertain that which is properly marketed and that this is on sale. Responsible for pulling stock which is out of date, not properly marked for that weeks sales or that which is destined for the clearance bin.

Socio-Economic Plan A & M Company had undertaken a research to know the possibility of the proposed business plan. While doing this we also gave proper considerations to the social responsibility of our company to one surrounding community. To Customers: The A & M Company believes that each person can eat foods in the way they like it and still are healthy. The products also offer our customers a chance to have a healthier life. To Employees/Workers: The A & M Company offers young people a chance to have job opportunities which they can use as an experience. They can enhance their skills due to the provided trainings and seminars the company will be giving. Lastly, it helps the employee to earn.

34

To Government: The A & M Company will be a help generate more taxes as the business grows and provides competition for a healthier economy. Paying of taxes can help the government create more job opportunities for people and in the other projects to improve the Philippines.

Risk Assessment Risk is always involved in building up a business whether it is small or big company. Every business should take it with much consideration and a lot of provisions in case the company may encounter one. A. Marketing Operations a. Promotion strategies might not attract potential customers. b. Other competitors might have better promotions. B. Technical Operations a. Availability of supply in terms of materials, equipments and ingredients. b. Shortage of materials, equipments and ingredients. C. Organizational and Management a. Staff may lack of experience and training. b. Failure of following company policy. c. High turnover rate. d. Might have corrupt officials. D. Financial Operations

35

a. Company may lead bankrupt. b. Sudden price increase on materials, equipments and ingredients. c. Might lost funds. d. Not enough capital. e. Wrong computation of expenses.

36