Republic of the Philippines

TANAUAN INSTITUTE, INC.

J. Gonzales St. Brgy. 4, Tanauan City Batangas

A Feasibility Study on

"Vegie Good Brownies"

A Feasibility Study on Baked Brownies with a twist of Squash and Horseradish

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Business Administration

Major in Marketing Management

Presented to the Panelist of Online Paper Defense

Submitted to:

Mam Joan Perez

Submitted by:

Arguel, Ma.Victoria Angila V.

Lumban, Kristele M.

Areglado, Kier Mico

 CHAPTER 1: BACKGROUND OF THE STUDY

INTRODUCTION

The food sector plays an essential role on our country's economy. In fact food accounts for
nearly half of the total amount of the output of the Philippines manufacturing sector, which
contributes around 23-24% of annual GDP (IFEX Philippines, 2019) Moreover, food is a very
important
component of the Filipino culture. Eating is so constant that an average Filipino eats five
meals a day, including snacks. No wonder why many would want to invest on food industry.
In the Philippines, over 12,000 food processing establishments were recorded (IFEX
Philippines 2019).

Today, many people, young and adult, favor sweets that they consider as ultimate comfort
food. Brownies are an all -time of the day. However, because of consumer's changing
preferences, brownies recipe has to be innovative constantly. consumers choose organic
food products for the enrichment of their health and lifestyle.

Hence, the proponents of Vegie Good Brownies came up with the idea of introducing brownies
with the new varieties of flavors that consumers not normally taste. These include
squash( kalabasa) and moringa leaves (malunggay) which are known for their healthful
contents. Thus brownies are not just a great tasting snacks but also good for health. They not
only contain quality ingredients but also made following sanitary procedures, presentable
packaging and best service accommodation as well as gaining customer's trust and loyalty.

A. Name of the Firm/ Business Description

The business proponents came up with the Vegie Good Brownies as the name of our
business "Vegie" the short English term for the word "Vegetable". "Good" means good taste,
quality and beneficial food products that will surely satisfy the customer's needs and wants. And
"brownies" is the product that the business mainly serves to the customers.
 Mission

To serve first healthy, nutritious and great tasting brownies in Tanauan City
that brings satisfaction and happiness to everyone.

Vision

To become one of the well -known bake shop in the country. Expanding the
capability of competing assertively in the industry.

Objectives:

a. to analyze the market demand and supply of the business.

b. to define the target customer of the business through market segmentation

c. to determine the market strategies to be applied in the business.

d. to determine the feasibility of the business.

e. to determine the range of the business.

f. to analyze and understand the complexities of the baking and pastry

business.

Business Logo

Business Name
Product /Service Description

The study is about a baked brownie with a twist. This project is proposed for the purpose
of serving the valued customers with an innovated food product which is both satisfying and
healthy which will be enjoyed not only by the adults but also by the young ones. Special
ingredients are added such as horseradish (malunggay) and squash (kalabasa) which are
known for their health benefits. This contains antioxidants which increase the efficiency of the
immune system, reduce the aging process and improve heart heath. They also help reduce
stress Thus, the business intends to emphasize that eating sweets is not bad at all. Customers
can take "Vegie Good Brownie" over and over again while maintaining quality and attractive look
of the product. It is a perfect gift for family and love ones.

Figure 1

JM Corona Street, Tanauan Batangas

Location is a key ingredient in a business success. If the company choose a wrong location,
it may have inadequate access to customers, workers, transportation and materials.
consequently, location often plays a significant role in the company's profit and overall
success. A location strategy is plan for obtaining the location for the company by identifying
the need and goals.

Based on the survey, majority of the respondents come directly from the hometown market
of Tanauan. The proponents divided to put the business to the place where customers can
find it easily and JM Corona Street Tanauan City is a perfect spot for the business. It is
believed that would very accessible to the target customers which are not just adults but also
the young ones.

• JM Corona Street Tanauan is considered to be a strategic location for the business

because it is a good place where a lot of people are passing by here. And also, it is a place
along intersection lane where lots of vehicle traveling are also passing by. Moreover, it is close
to the parking area of vehicles traveling to and from nearby towns. In that case, not only the
residents of Tanauan can be target customers but also the residents of another nearby town.

C. History of the Business

D. Statement of the problem

A businessman cannot start his own company without first determining his objectives,
tactics, and action plan. It is critical to determine the objectives in order to achieve the business's
aim. The following are the statements that the proponents in this study must respond to.

1.Market Study

In every project, feasibility of the marketing aspects is well throughout and is considered as
the most important since it requires inconspicuous analysis of the business total demand and
supply of a product at reasonable prices to the potential customers not just by meeting their
expectation but rather exceeding and going extra mile. Moreover, it is about profitability.

Market is an area where products and services can be sold. It is an aspect where the
demand and supply interact and business transactions are made. Brownies are an all -time
favorite treat in the world. Vegie Good brownies considered all types of ages especially students
and employed individuals, as well as those people who have purchasing power, to be its target
market to potential customers. The fulfillment of the needs and wants of its customers or target
market must be the key objective of the business.

Objectives:

a. to analyze the market demand and supply of the business.

b. to define the target market customer of the business through market segmentation
c.to determine the market strategies to be applied in the business.
d. to determine the feasibility of the business.

e. to determine the range of the business.

f. to analyze and understand the complexities of the baking and pastry business.

2. Management Study

Management study is one of the important aspects in establishing a business. It is the

performance of conceiving and achieving desired results by means of group effort consisting of
utilizing human talents and resources. Therefore, managements are considered as the force that
runs an enterprise and is responsible for its success and failure.
 The overall implementation plan is discussed in the organization and management study.
This aspect includes a study of the officers and key personnel, basic consideration in forming
the organization, form of ownership, organizational chart and project schedule.

The objective of the management aspect of a feasibility study is to determine the option
effectiveness of the organizational set up and the qualifications of the individuals who will make
up the organization. This aspect will determine the successful realization of the project study.

Objectives:

The study will cover different issues, actions and ideas on how the researchers will manage their
business. The following will clear what this all about.

• to determine the form of the proposed business,

• to analyzed the organization and management aspect of the business,

• to introduce and present the exact capitalization of the business,

• to identify the requirements and qualification, duties, and responsibilities and salaries and
benefits of the business manpower,

• to illustrate and clearly discuss the flow of authority and the policies that will serve as guide of
the entire business.

3. Technical Study

This stage discusses the process of production and activities of a business. It states also the
machineries and equipment used in production and other pertaining to bringing the raw
materials into finished product, plant layout, size and structures are all presented for the purpose
of identifying the business operation. The business process and labor needed are also
presented. The list of machinery, tools and equipment are enumerated with their description

Objectives

a. To identify the kind of service and variety of products the proposed business has including its
description and procedure

b. To determine the process to be used in obtaining the products, and how to distribute them in
the market

c. To describe the geographical location of the business

d. To illustrate the store size and store layout of the business.

e. To determine the supplies needed and all necessary machinery and equipment to be used in
the operation of the business.

f. To determine where to acquire the supplies and necessary utilities for the operation of the
business

g. To define the human requirements and regulation of the business

4. Financial Study

The financial aspect of the project feasibility study quantifies the results of the marketing,
technical, management, taxation and legal phase of the project study and expresses in peso
terms the possible outcome of operating the project.

The major parts of the financial study are:

• Statements of assumptions

• Projected financial statements;

• Details of various amounts contained in the projected financial statements; and

• Analysis of the financial projections

Basically, project studies consist of the skillful coordination of the various information on all the
factors in the form of financial projections. It covers all the factors that are pertinent to an
intended venture having established the existence of a sample market and the feasibility of the
production facilities to supply this market, the investigation should move on the study of finance
cost. What remains is to study the result of the market and technical studies.

Objectives:

a. To make realistic, complete and conservative estimate of the total cost to put up a project of
its capital requirements,

b. To measure the profitability of the business,

c. Assessing the growth potential of the business,

d. To determine the store's earning performance and the soundness and liquidity
of it

5. Socio-Economic Study
The socio-economic impact of this study will clearly state its relevance to the external aspect of
the business.

Objectives:

a. To determine the contributions of the business to the Philippine

economy. b. To described the benefits of the business to its community.
c. To ensure the active participation in the maintenance of cleanliness in the
environment.

Significance Of The Study

This study entitled "MKK Enterprise: Manufacturing of Vegie Good Brownies in JM Corona
Street Tanauan, City Batangas" will benefit the following:

To the Consumer

This research will assist consumers in being more knowledgeable about the products accessible
to them. The company will provide them with delicious and nutritious brownies.

To the Government

By paying the required taxes for business operations, permits, licenses, and regulatory
regulations, our company will contribute to the local government.
To Tanauan Institute Library

This will serve as a secondary source of data and information for future students, as well as
students enrolled in the same Bachelor of Science in Business Administration program. This
research can provide them with data and insight on their linked studies.

To the Proponents

This study will benefit the proponents since it will provide them with the chance to obtain
employment, learn and become productive individuals, as well as gather knowledge as a
beginning point for being successful entrepreneurs.
To the Future Researcher

This will provide them an idea of what their future research topic will be, as well as act as a
reference for further research and business ideas.

Scope and Limitation

This study focuses of a successful business in making delicious and nutrious

brownies that is located at JM Corona Street Tanauan, City Batangas (beside Liempo
Republic Tanauan).

The citizens in urban areas who are able to buy will be covered as part of
respondents. The product will be disseminated through direct selling to the customers who
are willing to purchase the product.

The competitors of the business to consider are the bakeries and pastries that can also be
found in Tanauan.

Research Method

The proponents used different strategies in gathering information to upholds the

study. Research Design
The proponents used the descriptive design and used survey questionnaires and key
informal interview. The survey was conducted by providing structured questionnaires to a
number of identified respondents from different barangays within the locality. The participants
who were asked to evaluate the brownies during the survey were randomly selected from
identified respondents.

Respondents of the Study including Demographic and Psychographic Distribution

Due to a large number of people that may become possible customers, the researchers
got at least 100 respondents from identified research locales. The total population of Tanauan
City Batangas as of 2022 is based on the population record given by municipal. The numbers
of questionnaires to be given to the number of respondents per barangay were determined by
dividing the number of populations per barangay by the total population of Tanauan, Batangas.
The researchers provide a letter of request to acquire the record in Statistics Office. The
sampling method that the proponents used was the convenience sampling. The community
record is a vital resource for determining the exact number of potential target markets.
Convenience sampling is a type of nonprobability sampling in which people are sampled simply
because they are "convenient" sources of data for researchers.

Research Instrument

A questionnaire was defined as the set of questions that are used to collect facts, opinions,
and obtain information. This tool helped the researchers to have an accurate report for easy
interpretation of the information gathered through a questionnaire. The proponents made two
sets of questionnaires; one for the consumers and one for the retailers. It was given the
necessary information to complete the study and the result was analyzed how the market would
respond to the proposed business. The consumers’ survey questionnaires were the tool that
was used to gather information needed for the improvement of the proposed product. The
factors that the consumers prefer in buying the product were known by the proponents in this
data gathering instrument. The retailers' survey questionnaires were used to gather information
about the retailers. It aims to know if they sell vegie good brownies, frequency of order and the
past consumption supply for the past four years.

Validity of Questionnaire

For the validation of the questionnaire that was created, the prepared questionnaire was
approved by the adviser Coleen Mosca MBA, the college instructor validator, MBA, Jessica De
Vera Osal, MBA and Mark Andrew Rimas, MBA the college instructor of Tanauan Institute. After
a questionnaire was validated, the proponents distributed the questionnaire to the target area.
The distribution of the questionnaire for respondents is based on the computation with the use of
Slovin’s formula.

The proponents prepared a reliability questionnaire through “Google forms” online, with random
respondents of Tanauan, City Batangas.

Data Gathering Procedure

A good study should be based on correct data and conducted in a systematic manner.

To have accurate data for the study, the proponents follow a systematic procedure. Data were
collected using survey questionnaires via messenger, Gmail, and Facebook. The proponents
struggled with this because of the outbreak of the Pandemic. Using technology, they reached
people by communicating with them via messenger. The researchers have done their part to
send out survey questionnaires for them to determine if the respondents want to buy the
proposed product. To determine the preferences of the respondent, proponents conducted an
online interview about the proposed product. The surveys were constructed for the consumers
and retailers. The questionnaire was subject to validation, after that, it was distributed to random
barangays. A letter attached to the questionnaire was presented as respondents understood the
significance of their questionnaire responses. The proponents used Slovin’s formula to
determine the number of respondents and looked on the social media site Facebook to search
for people who reside in a different household in Tanauan, Batangas and send the link of the
questionnaire made on Google forms. To get data on the number of households and the current
population of the entire Tanauan Barangay, the proponents also obtained information from the
Philippine Statistics Authority. Knowing the exact respondents required in the study is significant
for the proponents.

Using the historical data, one must remember that each of these methods yields different
projected figures and trends. To come up with a sample size to determine the number of
questionnaires to be distributed to the respondents, Slovin’s Formula was used:

Formula:

Where:

n= sample size

N= the number of people who qualify in the number of studies

e= margin of error which is 10%

Slovin’s Formula

n = N / (1+Ne ²)
n = Number of samples

N=

e = Margin Error

n= N

= respondents

1+(20,760+ 5,104) (0.10)

(1+Ne ²)
 Chapter II

Marketing Study

The market study is one of the most significant parts to be considered in this study.
Marketing study involves the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational objectives.
The chapter contains the proponents’ market study report which provides insights and
necessary information regarding to the methodology, analysis of the company’s strength,
weaknesses, opportunities and threats, research design of the study, the subjects of the study,
supply and demand analysis, marketing strategies and programs and the brief description of the
product.

Objectives of the Study

This study is intended to determine the market feasibility study of the product through the
formulation of marketing strategies and analysis of demand and supply. This can be
accomplished by the following specific objectives:

1.To determine the market potentials of "Vegie Good Brownies" through the identification of its
target market;

2. To determine the demand supply of the product;

3. To determine strength, weaknesses, opportunities and threats of the products and business;
and

4. To formulate marketing strategies to be utilized to penetrate the target market.

Areas Geographical Coverage

The area’s geographical coverage of this will be along the highway near Darasa,
Tanauan Batangas. The location of the store or shop will be accessible to many consumers. In
purchasing the product, the customer will be easy to purchase. The geographical area of the
study is based on the household individuals, especially in Barangay 3 Tanauan, City Batangas.

Methods of Transportation and Existing rate of Transportation

Public transportation will be the method by which the customer ride through the tricycle,
the minimum rate of thirty pesos (30)

Channel of Distribution and General Trade Practices

The " MKK ENTERPRISE" will be used as a one-level channel by which the
manufacturers use the involvement of a retailer as an intermediary. A retailer serves as a middle
man which gives a way between the consumers and manufacturers. With the use of the
retailers, the company or manufacturer is easy to purchase the product from the respective
consumers.

Demand and Supply Analysis

To understand the analysis of supply and demand, it is important to look at supply

and demand individually. Then consider the factors that shift supply and demand. Once a basic
understanding of shifts in supply and demand is understood, an
economist will bring everything together and consider when supply and demand is in equilibrium.

Demand Analysis

Demand is the total purchase of the product in the market. It calculates what factor a
product will purchase. This study will be conducted to enhance the capability of the business to
generate satisfaction for the consumer. The focus of the study is to conduct the total demand for
dishwashing liquid products in the market and determine what factor has an efficient and
applicable way to gain the wants of the customer.

Historical Demand

Historical Demand data states the amount consumed by the target market in the past
few years. To compute the historical demand, the proponents multiplied the 2018- 2022
population of both male and female in Tanauan to average annual consumption and buying
percentage that was computed.

Table 2.1

Historical Demand

Year Historical Demand

2018

2019

2020

2021

2022
 Table 3.1 represents the historical demand to determine the projected of MKK
Enterprise Inc. for the past five years. This will be the basis for computing the projected
demand for the next five years.

Major Consumption of the Product

The major consumption of the vegie good brownies will the household individuals,
especially women and respective customers which serve this product for their daily consumption
and use in their business. Household individuals will serve as the primary consumer, household
individuals will need to have a product that has a good quality in terms of cleaning utensils.

Projected Demand

Projected Demand is the activity of estimating the quantity of a product or service

that consumers will purchase. It may be used in assessing future capacity requirement, or in
making decisions on whether to enter a new market. The proponents used the statistical
straight-line method to obtain projected demand for the MKK Enterprise Inc. from 2018-2022.

Table 2.2

Projected Demand

Year Projected Demand

2018

2019

2020
2021

2022

Supply Analysis

Supply is the objects or anything each given by the manufacturer to the consumer. It
includes the forecasting sales of goods and services. Retailers or intermediaries or any type of
distributor sell a product to maintain the good supply and demand of the product. The supply ais
analysis is used as a proponent to study the quantity of the projected supply in a business.
Historical Supply
To properly determine the projected supply of the proposed business. The historical
supply is the easy way to determine it. Historical supply is determined by the researcher by the
use of the Frequency of agreement in the survey questionnaire which corresponds to a total
purchase or percentage of the product in the market in the past.

Projected Supply

In order for the business to provide a relevant and reliable projection of supply, it must
meet the demand of the product. The proponents used the straight-line method in forecasting
the supply it will help in determining the market gap for the succeeding years of operation.

Table 2.4
Projected Supply

Year Projected Supply

2022

2023

2024

2025

2026

Table 3.4 shows the first year of operation shows a projected supply of 16,203 and the
last year shows projected supply of 18,566. The increase depends on the increase in the
number of people as well as the increase in the consumers needed to be satisfied.

Market Share
Market share represents the percentage of an industry or market’s total sales that is earned by a
particular company over a specified time period. Market share is calculated by taking the
company’s sales over the period and diving it by the total sales of the industry over the same
period. Market share is the percentage of consumers that a company has captured from its
specific, desired market within an industry (Leonard, 2018). This metric is used to give a general
idea of the size of a company in relation to its market and its competitors. A higher market share
usually means greater sales, lesser effort to sell more and a strong barrier to entry for the other
competitors. A higher market share also means that if the market expands, the leader gains
more than the other.

Table 2.6
Market Share

Year Annual Sales Volume Market Gap Market Share

2022

2023

2024

2025

2026

Table 2.6 shows increase of the projected market share of the MKK ENTERPRISE INC.
for the next five years, it means that the company’s selling in the future operation would result to
a positive outcome. The projected market share for 2022 is 2.61 percent and it increased yearly
up to 4.60 percent in year 2026.

Competitors Marketing Strategies

Project Marketing Program

Product size Category

Brand Name

Packaging

Packaging is the most important aspect of the marketing strategy. Different sizes and
appearance are the major changes that can be seen in the market. The packaging style should
be attractive to catch the attention of the consumers in order for the company to gain higher
demand.
The proponents want to give the customer a new look for the new product. Thus,
choosing a packaging that will best suit the proposed product, they will be using a take home
box with ribbon. The proponents will print the company logo, brand name and the nutritional
facts required by the food and drug administration in a plastic and this serve as the cover of the
food keepers.
Table 2.7
Nutrition Guidelines of Vegie Good Brownies (per serving)

Calories 233

Fat 15g

Cholesterol 37mg

Sodium 172 mg

Potassium 88mg

Carbohydrates 25g

Pricing

Pricing strategy refers to method companies use to price their product or services.
Almost all companies large or small, base the price of their products and services on production,
labor and advertising expenses and then add on a certain percentage so they can make a profit.
Among the marketing mix components, price has the direct effect on the consumers as it
motivates them to purchase a particular product.
The proponents decided to base the price of Vegie Good Brownies to the existing
brownies in the market.

Channel of Distribution

The distribution of channels is the most efficient way to process goods and services. In
this chain, the product will be produced by the manufacturers and processed to the
intermediaries like retailers until it reaches the consumer.

This figure shows that the proponents used the channel of distribution which is the one-
level channel by which the Manufacturer of Graviola Moringa Tea is the primary distributor and
the retailer as their intermediaries that reach the product or service to the end user which is the
consumer.

Promotion Strategies

The promotion strategies are the proponents that are used in a business fulfill out the
information about the product or services presented. The primary focus of the promotion study is
seeking out the product’s capability and accountability to the consumer.

Word of Mouth

The word of mouth is the most efficient way to communicate with the consumer. It is the
most efficient way for those manufacturers to promote their proposed product directly to the
consumer. It is a type of promotion by which the customers build loyalty to a business.

Social Media

Social media is one of the assets of businesses to easily promote products. Social
medial platforms like Facebook and Instagram. Many individuals spending time sliding and
reading social media platforms right now.

Projected Sales

Contribution to the Economy

This proposed business contributes to the local economies by providing a good and
quality service. This organization provides an opportunity for many individuals by the way of
providing a job to the individuals even the undergraduate individuals and also to the working
students. The primary wants of the organization are to provide a job that enhances the growth of
the local economies.

Labor Employed

The organization of Manufacturing of Vegie Good Brownies provided incentives or

benefits to the employees like PAG-IBIG, SSS, and Phil Health which help the employees and
their families.

Tax Wages

The organization of the manufacturer of Vegie Good Brownies pays the taxes to the
Department of Trade and Industries (DTI) and the Bureau of Internal Revenue (BIR) by the
means of obtaining a permit before starting the business and during the operation of the
business.
 CHAPTER 3

Management Study

Introduction

One of the most important components of starting a business is management. To do so,

management must be able to organize all activities in order to become more productive and
competitive in the industry, utilizing human resources, financial
capabilities, and new technology. This involves a study of officers and important individuals,
fundamental organizational considerations, ownership structure, organizational chart, and
project schedule.

Objectives of the Study

The study's overall goal is to provide a clear explanation of how the proposed product will be
created, structured, and managed. The following points will be determined by this aspect:

1. To create the most suitable form of business organization.

2. To determine the organization structure appropriate for the operation of business. 3. To

describe the proponents and workers responsibilities.

4. To establish set of policies that will be implemented to avoid interruption of operation; and

5. To know the proper steps in legal establishment and existence of business.

Type of organizational/ Form of business ownership

A company's communication structures and employee authority are established

using a form of organization as a foundation. The proponents have chosen to form a
general partnership to run the business. Maria Gelai Arguel,
Kristelle M. Lumban, and Kier Mico Areglado are the company partners. Each partner agreed to pay money to the common
fund in exchange for their separate shares, and they will divide any earnings into three parts.
ORGANIZATIONAL STRUCTURE

The organizational structure determines how tasks, coordination, and supervision are directed toward achieving
organizational goals. It may also be thought of as the filter or perspective through which people perceive their organization
and its surroundings. The manner in which the organization functions and performs are determined by its structure.

The organization is the brain of the company; it allows you to manage business operations and arrange implementation to
achieve your objectives. The proponents create an organizational structure that will serve as a source of chain instructions
and communication, making the operation more efficient. A line organization will be used by the company. The simplest
and oldest kind of administrative structure is line organization. To identify the way and amount to which roles, powers, and
obligations are delegated managed and coordinated, the authority and duty are clearly stated. It also controls how
information is passed between management levels.
Figure 3.1: Organizational Chart

The connection between the owner and the employee is depicted in Figure 3.1. The
owners and all working personnel in the firm chose this line organizational structure so that there
would be direct connection between them. General manager, Assistant Manager, Financial
Manager, and Worker 1 make up the company.

The owners will be the General Manager, Assistant Manager, and Financial Manager, in
order to optimize the business's position and personnel.

Officers of the business and their qualifications

Job Analysis

Job Title: Production Manager

Job Description:
Excellent verbal and written communication skills.

Ability to quickly and effectively resolve problems.

Ability on planning and organizing production schedules.

Job Specification

20-45 years old

Male or Female

Flexible and have confidence to do their job.

Graduated in any business course

Job Title: Cashier

Job description:

Receiving payments and issuing receipts.

Greeting customers and helping them with any questions they may have.

Responsible for counting the contents of the cash register drawer at the end of each shift,
maintaining receipts, records.

Job Specification

18- 38 Years Old

Male or Female

Excellent verbal skills.

At least High School or Senior High School Graduate.

Job Title: Kitchen Staff

Job Description:

All around cleaning inside the kitchen.

Cooking Orders.

Cleaning Trash can and disposing it.

Storing Ingredients in to appropriate place

Job Specification:

18- 38 Years old

Male or Female

At least High School or Senior High School Graduate.

Job Title: Crew

Job Description:

Greeting guest and taking orders.

Delivering orders to the customers.

Following health code standards with regards to the handling of food. Job
Specification:

18- 38 Years Old

Male or Female

Can communicate to the customers with confidence. At

least High School or Senior High School Graduate.
Business Permits and licenses
Business permit assures that all ordinances of a particular city where you operate are
complied with by your business. This is crucial because every city or municipality has its own set
of regulations. It is a legal document which provides evidence that the structural and safety
appearances as well as product sales are in accordance with particular cities or state legislation.

Business permit allows the safety and structure of the business community to be regulated.
They are the proof that your company complies with specific rules and regulations. The
requirements vary depending on competence and failing to comply often results in fines or even
a shutdown of your organization. For the business to be legalized, here are some of the
following list of business permits and licenses in the Philippines.

Barangay Clearance

Barangay Clearance confirms that the company meets with the Barangay standards where the
company operates.

Go to Barangay where your firm is located.

Look for the Department where they establish a permit and ask for application for business
permit and fill that out.

After you filled the application form, submit it to the Barangay and wait until they approved it.

Mayor’s Business Permit

A starting up business must acquire the Business authority of Mayor’s or local government office
to conduct their business. The requirements for the business permit for the mayor may vary from
one city or municipality to another. In getting a BIR registration certificate, the BIR also requires
Mayor’s authorization.

BIR Certificate of Registration

BIR also called as COR or Certificate of registration. COR is an official document that provides
the holder legal rights to operate a business in the Philippines. In order to meet tax requirements
in the Philippines, business must be registered with Bureau of Internal Revenue. It is a proof
that a business is registered as a taxpayer with the Bureau of Internal Revenue. It will state the
type of taxes you’ll pay such as income taxes, withholding taxes and business taxes.

SSS FORM R-1

Your business must comply with the law and register your business with the Philippines Social
Security System if you establish a firm and employ workers to carry out your firm.

SSS is a social insurance system to provides its members and beneficiaries with protection. The
members of SSS can benefits from the benefits of maternity, illness, disability, retirement,
funeral and death.

PhilHealth Registration Form

Business owner must register their worker to PhilHealth because PhilHealth offers them the
needed medical care help. The first thing business can do is to ensure that their staff are
registered to PhilHealth.

Sanitary Permit

In business, it is crucial to have a clean environment. Every company or business that needs a
sanitary permit to ensure compliance with the Philippines Sanitary Code. This requires Mayor’s
permits and business licenses to be secured.

Fire Permit

The Bureau of fire protection’s Fire Safety Inspection Certificate ensures that a given facility,
structure is properly monitored and is considered to be in accordance with Fire code of the
Philippines or RA 9514. The danger and hazards of the facility are documented in such
inspections, which are resolved by the employers at the end of a report.

Business Policies

Business policy is the study of roles and responsibilities of top- level management, the
significant issues affecting organizational success and the decisions affecting organization in the
long-run. It defined the limits “Do’s and Don’t’s” within which decisions must be made. Without
business policy, an organization is like a ship without rudder, going round in circles. It’s like a
tramp; it has no place to go”.
The staff works 8 hours a day and a lunch break last’s from 8:00am to 5:00pm. Every 7 th and
22th day of the month, employees earn full pay. Employees shall leave within 15 days of the
year. The staff are offered 1 day off.

Working Hours and Conditions

Working Hours and Conditions can have a significant implication for morality and productivity.
Moreover, healthy employment circumstances safeguard employee welfare, decrease the
chances of injuries to the workplace and related financial obligations and take time off. The
normal hours of work of any employee shall not exceed eight (8) hours a day. The regular
working time of the employee shall not be more than 8 (8) hours a day and the one-hour daily
lunch break shall be exclusive to the employee. However, Philippine regulations do not forbid
less than 8 hours of work.

Salaries

A salary is a kind of regular payment by an employer to an employee, which can be set out in a
contract of employment. Salary is a predetermined sum of money received by the employee.

Benefits and Incentives

Benefits are a powerful technique to prevent the workers form leaving the business. Incentives
are associated with the performance of an employee and so act in the same way as rewards.
The incentive value is frequently linked to the obtained results.

13th Month Pay- the 13th month pay is often mistaken as the Christmas bonus, but technically
according to Presidential decree (PD) 851, “as amended, also known as the
13th Month Pay Law, requires employers to pay all their rank-and-file employees a 13 th month
pay not later than December 24 of every year”. Pay for the 13 th month shall be 1/12 of the yearly
wage paid every year, paid. Since it is mandatory, employee have no discretion to pay on the
basis of employee performance or corporate incomes.

SSS (Social Security System)- provide by government-sponsored insurance program for all
wage earners in the country’s private sector.

PhilHealth- there are financial assistance and service privileges provided for health insurance
for private employees through this program.

PAG-IBIG- also known as the Home Development Mutual Fund (HDMF), is a national savings
program and the financing office for low-cost housing.

Tardiness and absenteeism

If the employees want to take a leave with or without payment, they have to submit a
request for leave. If they can’t submit the request for their absence within the time period that is
given to them then it will be considered as unauthorized an unauthorized absent means absolute
deduction and the disciplinary action may be the basis.

And when the employees continued to make an absent without authorization of their manager
for at least 30 working days, it will be considered as absence without official leave or called
AWOL and without a warning, the records shall be severed from the services or removed.

Code of Conduct
Code of conduct, an organization’s most prevalent policy. This policy sets out the principles,
norms and moral and ethical expectations of the company when employees and third parties
engage with the company. A code of conduct is a part of compliance efforts as it contains
documentation indicating, when illegal activity occurs, employees or third parties breach
business policy. Exploring the significance of code of conduct and its impact on an organization.

During the production process, the employees must wear proper uniform, hairnet, apron and
plastic gloves. Staff shall follow the product’s standard packaging. Manufacturing workers shall
keep all materials and equipment in the product area clean and orderly. Procedures are required
in the manufacturing process to wear gloves and masks and lastly is that, during production
hours, production workers are not permitted to use cellphone unless its break time or lunch
break.

Compensation

Compensation means the money paid in exchange for their services to an individual.
Compensation in the workplace is what employees earn. In addition to the commission, it
contains compensation and other incentives or benefits that come with the position of a certain
employee. Proper compensation demonstrates that you regard employees as workers and as
people. They feel better at coming to work when people are valued. The overall mood of
companies is rising and workers are driven to work and perform a good job. Moreover,
personnel are increasingly motivated to give better performance when they know that incentives
or commissions exist. The compensation programs for bonuses and commissions exist. The
compensation programs for bonuses and commissions constitute a key success element.
REGULAR HOLIDAYS
An employee’s whom doesn’t work on a regular holiday is entitled to be paid 100 percent of
compensation for that day. An employee who works on a regular holiday is entitled to 200
percent of salary for that day. An employee working more than 8 hours (overtime) in a vacation
is paid an extra 30% of the hourly fee.

REGULAR HOLIDAYS DATE

New Year’s Day January 1

Araw ng Kagitingan April 9

Maundy Thursday April 1

Good Friday April 2

Labor Day May 1

Eid’l Fitr (Feats of Ramadhan) May 13 Independence Day June 12 Eid’l

Adha July 20 National Heroes Day August 30

Bonifacio Day November 30

Christmas Day December 25

Rizal Day December 30

Chapter IV

Technical Study
 This stage discusses the process of production and the activities of a business. it states
also the machinery and equipment used in production and other pertaining to bringing the raw
materials into finished product, plant layout, size and structures are all presented for the purpose
of identifying the business operation. the business process and labor needed are also
presented. The list of machinery, tools and equipment are enumerated with their description.

Objectives of the study

The general objectives of the study are to determine the technical soundness of Veggie
Good Brownies. Specifically, it attempts to discuss the following objectives:

To identify the kind of service and variety of products the proposed business has including its
description and procedure:

b. To determine the process to be used in obtaining the products, and how to distribute them in
the market:

c. To describe the geographical location of the business:

d. To illustrate the store size and store layout of the business:

e. To determine the supplies needed and all necessary machinery and equipment the used in
the operation of the business:

f. To determine where to acquire the supplies the necessary utilities for the operation of the
business:

g. To determine the human requirements and regulation of the business:

Product description

Veggie Good Brownies products fit to the consumers changing preferences on baked
products. To make VG Brownies more nutritious, powdered horseradish (malunggay) and
squash (kalabasa) are added. The great tasting Veggie Good
Brownies plus added nutritive value of vegetable constitute a vert affordable baked product that
customers will surely love Veggie Good Brownies come in different toppings. chocolate, caramel
and cheese.

Uses of the product

Promoting a healthy and convenient way of eating by introducing new flavor of brownies to
the public consumers would also benefit not just the consumers with its health nutrition content
but also helps the Filipino farming industries in the country as well.

Manufacturing Process

Manufacturing is the process of converting a raw materials into a finished goods that
meets customer expectation.
In the production of Veggie Good Brownies, good manufacturing process is very
important to produce high quality kind of product.

Cleaning the working area. Before starting the production process, the working area
should be clean first. The two workers are assigned to do it in 15 minutes.

Preparation of tools and equipment and measurement of raw materials. This will include
the preparation of tools and equipment necessary in the production process. The tools
to be used are Site the tools that will be using during the making of your product. As per
the ingredients, the following are listed below:

1/2 cup unsweetened cocoa powder

1 cup plus 1 tbsp cassava flour

1 tsp salt

2 tsp baking powder

 2 cups dark chocolate chips

1 cup unsalted butter

1 cup white sugar

4 large eggs

4 tsp vanilla extracts

1/3 cup of mashed squash (kalabasa)

1/4 cup crashed peanuts

1/4 tbsp. powdered horseradish (malunggay)

Preheat oven in 5 minutes and line baking pan with parchment paper set aside.

Combine dry ingredients in a medium bowl, combine cassava flour, unsweetened cocoa powder, salt, baking powder and
powdered horseradish (malunggay).
Combine wet ingredients using saucepan over low meat melt together 2 cups of chocolate chips with butter. Whisking until
smooth allow mixture to cool slightly then whisk in sugar until smooth, about 1 minute. Whisk in eggs and vanilla until
combined.

Put the squash in casserole and steam until it cook well, After a while, mash it well.
Then roast the peanuts until gilded brown then grind them.

Transfer chocolate mixture to large bowl and add dry ingredients then mix the mashed
squash (Kalabasa) and grounded peanuts. Use large silicon spatula or wooden spoon.
begin to mix together then fold in remaining chocolate chips until combined. better will
be thick and fudgy almost frosting like. Transfer to prepared baking pan. Making sure
batter is evenly spread into all four corners.
 Bake Brownies for 45 minutes. Edges of brownies should rise slightly. Use toothpick to
check for wet batter. brownies need another 2 minutes or so. If toothpick comes out with
corners, brownies are done.

Allow brownies to cool at room temperature for about 45 minutes or in a fridge to make
cooling faster. lift parchment paper and set brownies on cutting bond. Use large sharp
knife to cut brownies into 32 slices. Wipe the knife with damp towel before each cut.

Toppings’ Ingredients and Cooking Procedure

Chocolate Toppings:

Ingredients :
1tsp vanilla

1/3 cup chocolate

¼ cup unsalted butter

1/3 cup peanuts

Cooking procedures:

1. boil water and steam chocolate together, with butter and vanilla. 2.
then stir it well until it becomes sticky.

3. When the chocolate is slightly cool, it is no ready to be put in the piping bag. 4. put
the chocolate at the top of brownies. Then sprinkle the grounded peanuts. Caramel
Toppings

Ingredients:

½ cup white sugar

¼ tbsp. butter

1/3 cup peanuts

¼ tsp. vanilla

½ tsp. Iodized salt

Cooking procedures:

1. Preheat the pan then put the granulated sugar and stir it become golden brown. 2. Add the
nestle cream and butter with ¼ tsp of vanilla. Stir well until it become sticky 3. Then put in the
ice bag holder.

4. Put it at the too of brownies. Then sprinkle the grounded peanuts

Cheese Toppings:

Ingredients:

1 cup grated cheese

Procedure:

1. Sprinkled the grated cheese on the top of the freshly baked brownies.

Production Schedule

Production schedule refers to the production of a business in a particular period, the

costs involved in the process, the capacity of the machine, and also the capital
requirements are considered to make the production possible. It illustrates the Daily, Weekly
Monthly and Yearly schedule of production of the Veggie Brownies starting 2022

The firm will hire three (3) workers who will follow the eighth (8) work schedule, including
one-hour break assigned to them and (1) day off in a week. The Veggie Good brownies store
will be open from 8:00 a.m to 5 p.m.

Table 3.1

Year Daily Weekly Monthly Annually Total

2022

2023

2024

2025

2026
 Production Schedule

Table 3.1 shows the annual production of the business. Vegie Good Brownies will have a
schedule in daily production of two thousand (2,000) grams and annual production of five
hundred seventy-six thousand (576,000) grams in 2022. In 2023, projected production is two
thousand four hundred (2,400) grams in daily basis and six hundred ninety-one thousand two
hundred (691,200) grams in annual production. In 2024, the daily production is two thousand
eight hundred eighty (2,880) grams and eight hundred twenty-nine thousand four hundred forty
(829,440) grams in annual production. In 2025, the daily production is two thousand eighty
(3,440) grams and five hundred ninety-nine thousand forty (990,720) grams. In 2026, it will be
four thousand one hundred sixty (4,160) grams and one million one hundred ninety-eight
thousand eighty (1,198,080) grams in annual production. The workers will be more productive
because they mastered the task. They will do every task faster and more efficiently and this will
result to more production and less consumption of time and resources. The proponents also
considered the capacity of the equipment they will be using. The proponents assumed twenty
(20) percent increase in only production every year.

Plant location

The proposed business would be located at in J.M Corona St. Tanauan City Batangas.
The location is an advantage to the business due to the availability communication lines,
power, electricity, and to its marketability.

The manufacturing plant size of Veggie Good Brownies store is (7mx5m) 35 square meters
whereas the layout would be shown in Figure X.

Plant size and Layout

In order to easily locate the place and floor of Veggie Good Brownies, the plant size and
layout were properly designed. The proponents decided to put up the stall at J.M Corona St.
Tanauan City Batangas with an area of 35 square meters. The said space is large enough to
accommodate the raw materials, equipment, furniture, finished goods and tools needed in the
production.
 The plant layout is tactically designed to support the smooth process of the proposed
business (Veggie Good Brownies).

Storage Area - Where the supplies and raw materials and packaging
Baking Area - this is where the food is arranged and packing
Dish washing Area - where table wares and utensils are cleaned

Working Area- where all the tasks are performing and processed

Reception/Counter - where all finished products that are ready to be displayed. It is also serve
as the receiving area of customers ti purchase products

Figure X

Store Layout

Direct Materials

Direct Materials are the primary ingredients needed in the manufacture of the product.
The following direct materials will be used in the production of Veggie Good Brownies.
EXAMPLE DIRECT MATERIALS

Skimmed Milk. It will be used as the main ingredient of the product.

Yogurt. It is the second main ingredient that benefit human health by improving lactose
digestion, gastrointestinal function, and stimulating the immune system Avocado. It gives fruit
and flavor to the product.
Chili Powder. It gives twist to the product and provide variety to the consumers.

Table 3.2

Direct Materials (per 2000grams)

Description Quantity Unit Cost Total Cost (quarterly)

Cassava Flour 1.5 ltrs Php 292.50 Php 21,060.00

Margarine 0.12 ltrs 34.44 2,479.68

Sugar 2 tbsp 4.75 342.00

Flour 1 tbsp 4.38 315.36

Total Php 24,197.04

The purchase of direct materials will be done on a quarterly basis.

Indirect Materials

The following indirect materials are to be used in the packaging of the proposed product
for quarterly operation:

Table 3.3

Indirect Materials
Description Quantity Unit Cost Total Cost (quarterly)

Stainless Tray 50 pcs Php 100.00 Php 5,000.00

Boxes 100 pcs 25.00 2500

Ribbon 50 pcs 55.00 2750.00

Total Php 10,250.00

The table shows all the indirect materials that will be needed in the production. The total
quarterly cost of indirect material amounted to Php 10,250.00.
Leasehold Improvement

Table 3.4
Leasehold Improvement

Description Total Cost

Plywood Php 4,000.00

Labor 1,500.00

Divider 2,500.00

Fluorescent Lights 800.00

Tools 1,000.00

Paint 2,200.00

Total Php 12,000.00

Factory Equipment

Factory equipment is the equipment to be used in the production operation of the

company. It is very important because it facilitates the production easier and faster. All the
equipment will be locally purchased.
Table 3.5
Factory Equipment
Description Quantity Unit Cost Total Cost

Pasteurizing Machine 1 pc Php 15,000.00 Php 15,000.00

Batch Freezer 1 pc. 40,000.00 40,000.00

Refrigerator 1 pc. 45,000.00 45,000.00

Total Php 100,000.00

The factory equipment to be used in the production process are milk pasteurizing machine,
batch freezer and refrigerator. Milk pasteurizing machine is a must in any frozen yogurt shop.
Pasteurizing provides us with a safe hygienic product, as the bacterial flora in the mix are
removed and optimally homogenized. Batch Freezer is the stage when the mixture turns from
liquid to solid. The batch freezer blends and freezes the mixture by pumping air into it, thus
making the gelato homogenous and creamy. Total cost of factory equipment is Php 100,000.00.

Factory Furniture and Fixtures

The firm will be using the following furniture and fixtures in the production of the frozen
yogurt and comfort of the workers.
Table 3.6
Factory Furniture and Fixtures

Description Quantity Unit Cost Total Cost

Metal tables and chairs 4 sets Php 5,999.00 Php 23,996.00

Total Php 23,996

The factory furniture and fixtures of MKK Enterprise are composed of metal tables and
chairs and a set of desktop computer. The metal tables are in a circular shape that comes with
chairs that costs Php 23,996.00 for four (4) sets. The desktop computer will be using by the
cashier to process the orders of the customers. Total cost of factory furniture and fixtures is Php
23,996.00.

Factory Tools and Supplies

 The factory tools and supplies will help the production easier and faster. These are also
used by the workers to ensure the cleanliness and safety of the products as well as proper
measurement of each ingredient.
Table 3.7
Factory Tools and Supplies

Description Quantity Unit Cost Total Cost

Bread Knife 3 pcs. Php 99.75 Php 299.25

Chopping Board 3 pcs. 69.75 209.25

Apron 4 pcs. 49.00 245.00

Plastic Gloves 5 packs 63.20 316.00

Glass Measuring Cups 5 pcs. 550.00 2,750.00

Stainless Measuring Cups 5 sets 325.00 1,625.00

Spatula 5 pcs. 45.00 225.00

Whisks 5 pcs. 65.00 325.00

Hairnet 1 pack 75.00 75.00

Transparent/Kitchen Mouth Shield 2 packs 530.00 1,060.00

Wall Clock 2 pcs. 50.00 100.00

Total Php 7,229.50

Sources:

MKK Enterprise Inc. factory tools and supplies include knife, chopping board, apron,
plastic gloves, glass measuring cups, stainless measuring cups, spatula, whisk, hairnet,
transparent/kitchen mouth shield, boots and wall clock which is good for. It has a total of Php
7,729.50.

Office Furniture and Fixture

 The office furniture and fixture will be used by the proponents as well as visitors and
possible customers.

Table 3.8
Office Furniture and Fixture

Description Quantity Unit Cost Total Cost

Office Table 1 pc. Php 2,000.00 Php 2,000.00

Office Chair 3 pcs. 375.00 1,125.00

Filing Drawer 1pc. 3,800.00 3,800.00

Total Php 6,925.00

Office Equipment

The office equipment is the tangible asset which is held by the firm for use in production
process and is expected to be useful for a long time.
Table 3.9
Office Equipment

Description Quantity Unit Cost Total Cost

Stand Fan 1 pc. Php 500.00 Php 500.00

Total Php 500.00

Office Supplies

The office supplies are used for administrative purposes such as clerical jobs, supplies
used in documentation, paper works as wells as for the report requirements. The following
supplies are needed by the firm to help run the administrative section of the business.
Table 3.10
Office Supplies

Description Quantity Unit Cost Total Cost

Record Book 3 pcs. Php 45.00 Php 135.00

 Journal 3 pcs. 25.00 75.00

Ledger 3 pcs. 25.00 75.00

Calculator 1 pc. 125.00 125.00

Ballpen 1 box (6pcs) 5.00 30.00

Stapler 1 pc. 130.00 130.00

Staple wire 2 boxes 25.00 50.00

Binder clips 12 pcs. 8.00 96.00

Business receipts 12 pcs. 25.00 300.00

Scissors 2 pcs. 22.00 44.00

Tape 3 pcs. 7.00 21.00

Short Envelope 12 pcs. 1.50 18.00

Long Envelope 12 pcs. 1.75 21.00 12 pcs. 3.50 42.00

Short Folder

Long Folder 12 pcs. 3.75 45.00

Short Bond paper 2 reams 130.00 260.00

Long Bond 2 reams `145.00 290.00 2 pcs. 20.00 40.00 2 pcs.

paper Marker 20.00 40.00
Correction fluid/tape

Total Php 1,837.00

Maintenance Supplies

The company will be using different supplies for proper maintenance and cleanliness of
the office and working areas. Though they are consumed in the
production process, they do not form part of the end product. The following maintenance
supplies are to be used in the manufacturing and administrative plant.
Table 3.11
Maintenance Supplies

Description Quantity Unit Cost Total Cost

Broom 2 pcs Php 65.00 130.00

Dustpan 2 pcs 150.00 300.00

Garbage Cans 4 pcs 75.00 300.00

Garbage Bags 12 rolls 37.50 450.00

Mop 2 pcs 65.00 130.00

Liquid Hand Soap 5 pcs 65.00 325.00

Detergent Soap 5 pcs 36.50 182.25

Toilet Paper 24 rolls 13.25 318.00

Rags 10 pcs. 5.00 50.00

Cleaning Sponge 5 pcs. 12.50 62.50

Fire Extinguisher 1 pc. 1,850.00 1,850.00

Total Php 4,097.75 Source: Tanauan City, Batangas Century Market

Utilities 0

Utilities are the basic needs to start the operation of the business. It plays an important
role in the production and overall management efficiency. To maintain a smooth operation of the
business electricity, communications, gas and water shall be provided.

Table 3.12

Monthly Quarterly

Water Php 400.00 Php 1,200.00

 Electricity Php 6,500.00 Php 19,500.00

Gas Php 1,200.00 Php 3,600.00

Total Php 8,100.00 Php 24,300.00

Waste Disposal
Customers are always the business to give the customer one hundred percent
satisfaction, maintenance of cleanliness in all areas of the store is a must as one the
customer requirements.

Veggie Good Brownies will provide two big trash lines in the kitchen areas with cover
and proper label for segregation will be observed to assume the safety on the preparation of
the products. The accumulate garbage per day will be collected by the utility Man of
Municipality of Tanauan City This kind of system will be continually observed in the day-to-
day operation.

Direct Labor Requirements

People are considered to be the lifeblood of any business organization. They are very
important for the business ti operate effectively. Veggie Good Brownies will have 3 full-time
employees. In the operation, a total number of 3 manpower are needed the store. they are the
ones who will perform the function of following positions.

Each worker will receive basic monthly salary of which will be distributed equally during 15 th
and 30th of the month. Compensation package also includes basic statutory requirements such
as SSS, Pag-IBIG and Phil health. Each worker is also entitled to his 13th month pay which is
equivalent to his one-month basic salary assuming he incurred no absences.

Table 3.13
Direct Labor Requirement

Cost Monthly Quarterly

Quarterly
 Direct Labor Php 18,960.00 Php 56,880.00
Requirement
(2 workers, 1
manager)

Employee Benefit

SSS Php 1,466.60 Php 4,399.80

Philhealth Php 300.00 Php 900.00

Pag-IBIG Php 300.00 Php 900.00

Total Php 21,026.60 Php 63,079.80

Table 3.13 shows the total direct labor cost of producing Veggie Good Brownies. It includes
the basic salary of each worker and the employee benefits such as SSS, Philhealth, Pag-IBIG
contributions with a total quarterly cost of Php 63,079.80.

Generalization

Name of the product is a newly introduced variant of burger which is made from what
main ingredients. It is a great alternative especially to those health-conscious consumers
because of its nutritional value.
The company is expected to produce 576,000 pieces of burger in its first year of
operation. The proponents assumed that there is an increase of twenty-five (25) pieces of burger
per year. Each piece is equal to how many grams. The manufacturing process includes cleaning
the working area, preparation and measurement of raw materials, tools and equipment, mixing
of ingredients and transferring and storing the burger.
This chapter also discussed the equipment, tools and supplies and raw materials used in
the production process. Plant location and layout is also presented as well. Basic utilities such
as electricity, water and communication are available in the selected location. The firm assures
the quality of the product they manufacture by doing the technical process efficiently and
effectively to attain success in the business.