STEM401 Group 3 Business Plan

STI COLLEGE ORTIGAS-CAINTA
HYDROSURGE
“The Power is in our Hands”
A Pre-Feasibility Study
Presented to the Faculty of STI College Ortigas - Cainta
Cainta, Rizal
June 2023
Science, Technology, Engineering, & Mathematics Grade 12

STI College Ortigas-Cainta
Paramount Plaza, Ortigas Ave. Ext.
Brgy. Sto. Domingo Cainta, 1900
09936209129/(02)8669-1082
[email protected]
SENIOR HIGH SCHOOL

SENIOR HIGH SCHOOL ii

Accepted in partial fulfillment of the requirements for the strand Science,

Technology, Engineering, and Mathematics.
ROXANNE RAMINA T. CASTILLO

Assistant Principal
JHONEL C. DOMINGO
Principal
SENIOR HIGH SCHOOL iii

TABLE OF CONTENTS
Page
Title Page i
Certification ii
Table of Contents iii
Executive Summary vi
I. Organization and Management Background
I.1 Vision, Mission, and Core Values
I.1.1 Vision Statement 1
I.1.2 Mission Statement 1
I.1.3 Core Values 1
I.2 Business Profile
1.2.1 Name of the Company 2
1.2.2 Contact Information 2
1.2.3 General Business Information 2
I.3 Organizational Chart and Management Team
I.3.1 Organization Chart 3
I.3.2 Management Team 3
I.3.3 Department Function 5
II. Production and Operation
II.1 Product Description 7
II.2 Product Development Flowchart 9
II.3 Technology Consideration 12
II.4 Major Start-Up Needs 14
II.5 Business Operating Workflow 22
III. Marketing Aspect
III.1 Market Analysis
III.1.1 Market Research 24
III.1.2 Market Size 24
III.1.3 Market Growth Rate 25
III.1.4 Market Trends 27
SENIOR HIGH SCHOOL iv

III.2 Micro and Macro Environmental Analysis

III.2.1 Customer Analysis 28
III.2.2 Competitive Analysis 29
III.2.3 SPEET Analysis 30
III.2.4 TOWS Analysis 31
III.3 Marketing Strategies
III.3.1 Product Strategies 32
III.3.2 Pricing Strategy 32
III.3.3 Distribution Strategy 33
III.3.4 Advertising and Promotional Strategy 33
IV. Accounting and Finance
IV.2 Capital Expenditures (Start-Up Capital) 35
IV.3 Sources of Funds 35
IV.4 Operating Expenditures 36
IV.5 Income Statement 37
IV.6 Payback Period 38
4.6 Return on Investment 39
V. Appendices 40
5.1 Partnership Agreement/ Company Bylaws and other legal requirements
documents.
5.2 Description of the logo and other promotional paraphernalia.
5.3 Survey and other related market research.
5.4 Management Schedule and other management activities.
5.5 Entrepreneur Background
SENIOR HIGH SCHOOL v

EXECUTIVE SUMMARY
HYDROSURGE, located at Paramount Plaza in Cainta, Rizal along Ortigas
Avenue Extension, is a service-oriented business that is dedicated to providing
renewable electricity to its consumers in a way that benefits and develops the
community. The company was founded by Mr. Emmanuel L. Soriano and was
established on November 6, 2021. It operates as a limited partnership, which offers a
level of personal liability protection for certain partners involved.
Over the past two years, HYDROSURGE has been focused on developing and
bringing to market its alternative sustainable energy unit. The entire process, from
idea generation to product launch, has been carefully considered and planned. The
company has invested in training its partners, shareholders, and employees to
ensure they possess the necessary skills, professionalism, and knowledge in their
respective roles.
The main innovation introduced by HYDROSURGE is the Coastal Defense

Oscillating Body, which combines a submerged breakwater with an oscillating body.
This environmentally friendly solution serves as both a protective barrier for coastal
areas and a means of harnessing wave energy to generate sustainable electricity. The
target market for HYDROSURGE includes residents of Rizal, primarily within the
age range of 20 to 59 years old.
In terms of return-on-investment, HYDROSURGE anticipates achieving it in

approximately 5.8 years or 69 months. This projection takes into account the costs
involved in setting up the business, developing the product, and establishing a solid
consumer base.
I. Organization and Management Background
SENIOR HIGH SCHOOL vi

1.1 Vision, Mission, and Core Values

1.1.1 Vision Statement
HYDROSURGE envisages becoming the leading company in hydroelectric
power services, known for generating reliable and efficient power for the
community. We strive to be the outstanding provider of protection and to create not
only temporary solutions but also long-lasting services for the future.
1.1.2 Mission Statement
To produce holistic products that contribute to a better future by offering
cutting-edge, environmentally sustainable technology, while pursuing innovations
that not only provide long-lasting service but also safeguard people and provide a
safe environment. We strive to be inclusive and diverse in fulfilling the company's
mission, offering the best possible service, care, and value to our stakeholders.
1.1.3 Philosophy/Core Values
HYDROSURGE is guided by a holistic system to ensure a quality environment
for the company to keep order aligned with the core values and philosophy.
Hybrid technology that helps reduce flood disasters and
Yield electricity for the community.
Determined employees dedicated to providing the utmost service, ensuring the
Resilience and recovery of the community while offering protection
Optimized to guarantee secure mechanization and deliver
Services that meet the highest standards expected by the people.
Uniqueness defines us as a
Reliable companion for every individual: shareholders and employees
Goal-oriented spirits and passion both inside and outside the company.
Eco-friendly products that minimize impact on air, water, and land
contamination promoting resource-efficient items and behaviors.
1.2 Business Profile
1.2.1 Name of Company

i
The gear symbol denotes innovation, progress, and teamwork; as well as how
HYDROSURGE will cooperate to fulfill its mission and vision. The lightning bolt
symbol inside the water drop represents
electricity, and the water drop represents
“hydro” which is a Greek word for water. The
nine (9) lines that make up the logo’s outer
border stand in for the communities that
HYDROSURGE can supply electricity to. Since
water is the main source of electricity, the lines
Figure No. 1 Company Logo
or light bulb screw were made to resemble
waves.
1.2.2 Contact Information
 Landline No. (02) 8669-1082
 Facebook Page: HYDROSURGE
 Instagram Account: hydro.surge
1.2.3 General Business Information
HYDROSURGE, located at Paramount Plaza, Cainta, Rizal along Ortigas
Avenue Extension, is a service business that aims to provide renewable electricity to
consumers in ways that contribute to community development. It was founded by
Mr. Emmanuel L. Soriano, a partner of HYDROSURGE, and established on
November 6, 2021. The company operates as a limited partnership, which limits the
personal liability of certain partners. The business has been in operation for two
years, focusing on the development and implementation of an alternative
sustainable energy unit. This process involved idea generation, product planning,
and ongoing training of skilled, professional, and knowledgeable partners,
shareholders, and employees.

ii
1.3 Organizational Chart and Management Team

1.3.1 Organizational Chart
Figure No. 2 Organizational Chart

1.3.2 Management Team
NAME POSITION DESCRIPTION
In charge of enhancing
operational effectiveness and
Precious Faith A. GENERAL MANAGER
driving departmental
Pascua profitability while overseeing
the overall functioning of the
company.
Tasked with executing
workflow protocols as per
guidance from the general
Roy Antoni T. Sasutona ASSISTANT manager. Responsible for
supervising employees in
MANAGER
their daily duties and
offering customer support in
SENIOR HIGH SCHOOL 9

escalated scenarios.
Provides leadership and
guidance for the day-to-day
operations of the Human
Resources department.
Responsibilities include
Edward Justin L. Layug HUMAN RESOURCES overseeing staff recruitment
MANAGER and selection processes,
managing payroll, benefits,
and leave administration, and
ensuring compliance with
company policies and
procedures.
In charge of conducting
research to identify and
SALES AND
explore marketing
Luis Keine C. Certeza MARKETING
opportunities, as well as
MANAGER
devising and executing new
sales strategies.
Tasked with supervising the
financial well-being of the
company and supporting its
ongoing sustainability.
Additionally, they oversee
Francis Tyrone F. Cruz FINANCE MANAGER critical tasks including cash
flow monitoring, profitability
assessment, expense
management, and the
generation of precise
financial data.
In charge of formulating,
executing, and overseeing the
company's research and
development strategies. It
RESEARCH AND prioritizes and aids the
Kevin C. Bibat DEVELOPMENT organization in achieving its
MANAGER commercial, policy, and
research goals. Implementing
new programs and protocols
is also a part of the
responsibilities.
Accountable for supervising

production and operational

activities throughout the
PRODUCTION & company. Evaluates and
Jhon David R. Corpuz OPERATION analyzes operations within
MANAGER the department, including
business budgets and the
product life cycle,
coordinates day-to-day
operations of the company.

Production and Operations Management Department

The Production and Operations Management Department is responsible for
manufacturing the actual product. It is a fully operational department that
transforms raw materials into finished goods, prioritizing efficiency, and
effectiveness. In addition to overseeing production, the department is also
responsible for planning and organizing various aspects. This includes studying
design, assessing demand, and determining the production process. Customer
satisfaction and product quality are key factors considered in this department.
Marketing and Sales Department
The Marketing and Sales Department is responsible for determining the
distribution and pricing strategies for the company's products. This includes
deciding where and how the products should be sold, as well as setting the
appropriate pricing. The department is also tasked with selecting intermediaries,
such as resellers, distributors, or retailers, to facilitate the product's reach to the
target market. Additionally, they actively seek effective methods and create
strategies to enhance the company's sales performance.

II. Production and Operation Aspect

2.1 Detailed Product Description
The company's product is a coastal defense system called Coastal Defense:
Oscillating Body, which harnesses wave energy to generate electricity. The
Oscillating Body is comprised of four main materials. The most important materials
are copper, which forms the interior wall of the coastal defense structure, and
magnetic material, which is responsible for creating kinetic energy that is then
converted into electric energy using other devices. The other two materials used are
plastic, which ensures the floating device is lightweight and able to float in the
ocean, and chain, which attaches the plastic hanging material to the magnetic
material, enabling the up and down motion. Consumers benefit from this product as
it generates renewable energy, providing electricity while reducing the risk of flood
surges along bay areas. The company is committed to providing non-polluting
energy and protecting coastal regions from significant surges.
Figure No. 3 Product Sketch 1

Figure No. 4 Product Sketch 2

FEATURES/CORE:
 Sustainable Energy
 High Quality
 Signal Light
 Copper Wall
DIMENSIONS:
Coastal Defense:
 Height: 15 meters
 Length: 1 kilometer
 Width: 10 meters
Oscillating Body:
 Diameter/width: 6 meters
 Height: 10 meters
 Material: Plastic and Magnetic Materials
 Plastic (polyethylene terephthalate or PET)
 Magnetic Copper
 Metal
AUGMENTED:
 Transmission towers
 Cable lines

2.2 Product Development Flowchart
Figure No. 5 Product Development Flowchart
In the flowchart above it all starts with generating and brainstorming the
product; to have a foundation or where to start, the brainstorming will consider self-
ideas, research, trends, and the assumption that it will be a great addition to the
market.
Potential Profiting Markets:

 LGUs
 Near-shore & Offshore Communities.
Next to gathering data and ideas, it will be put into a simple process which is
surveying and still researching, this is like sifting all the ideas and concepts that are
not necessary and getting all the things that think would be useful or necessary.
After the process of elimination and getting the best, now it is the start where the
company draws and conceptualizes what can be the actual product using all the
gathered ideas. In this part, it is where the company answered these questions.
 What does it look like?

 What does it do?
 What are the features?
 What is the product goal?

 Why should we have this?
 Is it feasible?
 What is the overall structure?
After all that the created products that were proposed will go through another
decision or process to rank and eliminate to choose the final one. In the flowchart,
the red indicates a checkpoint to the product development.
DESIGNING & DEVELOPMENT - To proceed, the second stage of this

development is the Designing and Development phase, which involves
transforming the chosen product into something tangible. In this stage,
HYDROSURGE focuses on designing the structure of the product, including its ideal
measurements. The previous ideation and research phases serve as the basis for the
main mechanism and functionality of the product. Prior to proceeding, the company
gathers the necessary materials. The four main components of the product are
identified as follows:
 Magnetic Copper
 Magnet
 Plastic
 Lines/Polypropylene rope
Figure No. 6 Main Components of Coastal Defense: Oscillating Body

Sources: https://www.ropesandtwines.com/proddetail.php?prod=2mm-red-braided-polypropylene-rope-200m
https://ilovepaket.com/product_details/34744618.html
https://www.alibaba.com/product-detail/Red-and-Green-Navigation-Buoy-Manufacturer_1600144021716.html
https://www.indiamart.com/proddetail/bare-copper-wire-13927058973.html

PROTOTYPING - The next checkpoint in the process is prototyping. Since the

product requires a trial-and-error approach to make it work, building a prototype
becomes necessary. This step primarily involves creating small-scale structures,
assembling the gathered materials, modeling, and ensuring it functions on a smaller
scale.
Furthermore, testing the prototype is an integral part of this step. As shown in

the figure, the prototype will undergo a series of tests to answer questions and
ultimately improve the design, reducing errors. This testing phase also plays a
crucial role in determining the final output or the large-scale product.
MARKETING ANALYSIS - Next, we move into the market assessment phase

of the product after prototyping. Once the experts in the company have confirmed
that the prototype is functioning properly as expected, the focus shifts to the
marketing strategy for the proposed product. This involves the members of the
company developing a strategy for effectively marketing the product. The key
aspects within this scope include:
 Costing/Budgeting
 SWOT analysis
 Profitability assessment
 Determining the overall capital required to launch the product in the
market.
MANUFACTURING/APPLICATION OF THE PRODUCT - The next stage
involves manufacturing the Coastal Defense: Oscillating Body. This step entails
seeking means of production and attracting investors and shareholders for the
company and the product itself. Once the necessary preparations are completed, the
product is finalized and ready for production. The actual manufacturing takes place
in the intended market, considering the technology's environmental impact and the
nature of the service-oriented business. Furthermore, to reach the finish line, the
company undergoes a series of observations and tests, such as alpha and beta

testing, to ensure the product's performance meets the desired quality standards.
Feedback is also collected to gauge the response and determine if any improvements
are needed.
LAUNCH - Upon successful testing and observation, the next step is

commercialization and preparing for the product launch. This involves finalizing all
the necessary advertisements and promotional materials. Once the preparations are
complete, the technology and service offered by the company are officially launched
and introduced to the market.
2.3 Technology Consideration

With the advancement of technology worldwide, people have become
increasingly dependent on it, as it has become an integral part of their daily lives.
Modern technology has brought about significant changes in society and has had a
profound impact on various industries, including the business industry. It has
provided countless benefits, particularly in terms of communication and product
manufacturing. The use of various technologies has made communication and the
manufacturing process faster and more efficient. Many businesses have experienced
rapid growth by leveraging different internet platforms for advertising and tracking
consumer demand for their products. In light of these developments,
HYDROSURGE should be prepared to consider the following technical aspects:
Internet Service Provider
Figure No. 7 Internet Service Provider

Source: https://www.gadgetmatch.com/pldt-home-speedboost-double-data-extension/

Connectivity to the internet is crucial for businesses to achieve optimal results.

It provides the reliability and speed necessary for effective advertising and seamless
communication between staff and clients. With a reliable internet connection, the
company could expand its business locally or even internationally, engaging with a
larger audience. Without internet service, the company would face challenges in
promoting its products and communicating with stakeholders. Ensuring a stable
and fast internet connection is a necessity for the company to promote its products
securely and effectively.
Communication System
Figure No. 6 Communication System

Source: https://bootcamp.uxdesign.cc/how-to-judge-google-workspace-rebranding-in-design-perspective-e09246b9b1d1
Communication plays a vital role in connecting the company, staff, and

consumers, making it a crucial aspect of the business. Technology has significantly
improved communication methods, offering tools such as email, video calls, and
phone calls. These communication systems facilitate easier and more effective
communication, enabling prompt responses to deal and transactions. With the help
of technology, companies can establish seamless communication channels, ensuring
efficient collaboration and customer engagement.
Social Media Platform
Figure No. 8 Social Media Platform

Source: https://www.vecteezy.com/vector-art/3775685-social-media-icons-set-facebook-instagram-twitter-logos

Social media is a powerful platform that connects people and allows

companies to share information instantly. It serves as a valuable tool for promoting
products and services, reaching a wide audience through advertising campaigns.
Social media also facilitates direct communication with consumers, enabling
feedback and idea generation for business improvement. By actively engaging on
social media, companies can build a strong online presence and enhance their brand
image.
2.4 Major Start-Up Needs
Office building/ location
Figure No. 9 Office Floor Plan

Figure No. 10 Office Building

Source: https://www.lamudi.com.ph/for-rent-30sqm-commercial-and-office-space-ortigas-ave-ext-cainta.html
The company is located at Paramount Plaza, KM17 Ortigas Avenue Extension,

Brgy. Sto Domingo in the Municipality of Cainta, Province of Rizal. Being a newly
established company in 2021, the owner and board members made the decision to
rent a commercial space that is easily accessible to many people.

Figure No. 11
Office Floor Plan Top View
Materials
HYDROSURGE focused on only acquiring materials that is a necessity in
starting a business, listed in the table below are three (3) categories on where specific
materials are needed. For our product, the primary and secondary components are
listed such as: magnetic copper, magnet, plastic, rope etc. For our office place, we
will be needing basic office furniture and equipment. For promotion, both print and
non-print materials will be utilized.
Product Components
 Stainless steel bar
The main metal that will house the oscillating body it is not easily
corroded.

Figure No. 12 Stainless steel bar

Source: https://auremo.net/blog/p-round-bar
 Translator poles
The main pole or shaft that the permanent magnets will be attached to.
Figure No. 13 Translator poles

Source: https://www.researchgate.net/publication/259624017_Multi-
Phase_Linear_Generator_for_Electric_Vehicle_Applications
 Circuit board
Utilized in the main wiring of the actual Oscillating body to connect all
the signals the technology needs and electricity.
Figure No. 14 Circuit board

Source: https://upload.wikimedia.org/wikipedia/commons/a/af/Electronic-circuit-design-500x500.jpg
 Cement
A solid and durable element that hardens and will act for the body of the
submerged breakwater.

Figure No. 15 Cement

Source: https://www.bworldonline.com/wp-content/uploads/2021/12/cement-bags-pile.jpg
 Electric Sea Cables
This carries the power generated from hydropower to power stations and
create inter-country and island connections.
Figure No. 16 Electric Sea cable

Source: https://www.emworks.com/application/electrical-field-simulation-of-3-phase-high-voltage-submarine-power-cables
 Lights
The lights will be utilized for the buoy signal.
Figure No. 17 Lights

Sources: https://yuefalighting.com/e_productshow/?215-Oblong-Led-Underwater-Lighting-215.html

 Stator
This metal houses the copper, and it is the element where the copper will
be coiled.
Figure No. 18 Stator

Source: https://www.marposs.com/eng/application/stator
 Capacitor
To block direct current while allowing alternating current to pass.
Figure No. 19 Capacitor

Source: https://ph.element14.com/productimages/large/en_US/5202940.jpg
 Batteries
These will handle and carry the huge amount of energy or voltage from
the generator.

Figure No. 20 Batteries

Source: https://content.instructables.com/FPD/4Y2P/J9EH5TB1/FPD4Y2PJ9EH5TB1.jpg?
auto=webp&frame=1&width=1024&height=1024&fit=bounds&md=0e8b21db3c6760d924062ae47e01cb6e
Main Office Equipment
 Office table and chair
Figure No. 21 Office table and chair

Source: https://homestyledepot.com.ph/wp-content/uploads/2019/11/L-Type-Glass-Top-Office-Table-
1024x1024.jpg
 Desktop computer
Figure No. 22 Desktop computer

Source: https://www.lifewire.com/thmb/WZdlwJIGSRA9Bkk7tKIj9Mgg-lk=/1500x0/
filters:no_upscale():max_bytes(150000):strip_icc()/xxl-desktop-pc-98013994-5c4dcc47c9e77c0001380389.jpg
 Conference table and chairs

Figure No. 23 Conference table and chairs

Source: https://www.topregal.com/out/pictures/master/product/1/26000_221294_Ella480_Marina5.jpg
 Printer
Figure No. 24 Printer

Source: https://www.officewarehouse.com.ph/product/027595/
 Filing cabinet
Figure No. 25 Filing cabinet

Source: https://www.drafofficefurniture.com/product/3-layer-vertical-steel/
 Router

Figure No. 26 Router

Source: https://www.ubuy.com.ph/product/5CR040-tp-link-ac1750-smart-wifi-router-archer-a7-dual-band-
gigabit-wireless-internet-router-for-home-works-with-alexa-vpn-server-parental-control-qos
Promotion Materials
 Brochures/flyers
Figure No. 27 Brochure

 Business Card
Figure No. 28 Business Card

 Signages
Figure No. 29 Signage
2.5 Business Operating Workflow

Figure No. 30 Business Operating Workflow
HYDROSURGE's business operating workflow can be divided into two main

parts. The first part focuses on creating a foundation for power generation and
establishing the necessary steps to deliver the service to customers. The workforce
plays a crucial role in carrying out the operations and adding value to the business.
The workflow follows a sequence of tasks that are essential for providing the
intended service to consumers.
The second part of the workflow is centered around product development.
This stage ensures that the proposed product aligns with the product development
flowchart. It involves canvassing and procuring raw materials from suppliers to
construct the power plant/unit, transmissions, power lines, and connections. The
power plant is the central task in this stage as it is responsible for generating the
service offered by the company. Once the initial segment is completed, the workflow
moves into the main repeatable steps. The service generation goes through a quality
checking process to ensure the maintenance of high service standards. If the service
generation would not pass the quality checking process, it will go back to the other
steps in order to fix the problem. The next step is transmission, where electricity is
transferred through the transmission lines to substations. Substations reduce the
voltage to a suitable level for supply to customers. From the substation, electricity is
distributed through power lines to various load points such as houses, buildings,
industries, and businesses. Simultaneously, marketing activities take place, directing
sales efforts towards customers.
Finally, the support side of the operating workflow focuses on customer
service. There is a two-way interaction between customers and staff members. Once
customer feedback is received and tasks are fulfilled, it may loop back to the quality
checking stage and continue through the workflow again. Overall, this operating
workflow ensures a systematic and efficient process for HYDROSURGE to generate
and deliver electricity to customers, with a focus on quality control and customer
satisfaction.

III. Marketing Aspect

3.1 Market Analysis
3.1.1 Market Research
Based on HYDROSURGE’s research, the submerged breakwater is well-known
and being utilized by many countries in the world such as the Malaysia, Indonesia,
the USA, Italy, etc. It is used for protection of shores from beach erosions caused by
strong waves. The Oscillating system that harnesses electricity from wave energy is
also used by European countries, China, Japan, America, etc.
With the growing concerns of electricity demand in the Philippines, the
HYDROSURGE have made up an innovation that is combination of submerged
breakwater and an oscillating body that can provide sustainable energy.
The company focused on Rizal as its target market, the fact that the province
has the highest inflation rate among other provinces in the region, with the ability of
the product to be sufficient to have a change by affecting the economic condition of
the said place. The residents of Rizal province are the plausible consumers, as they
are affected with the inflation rate, they might favor our product that can be
sufficient to influence the rate of inflation. Also, the government of Rizal is looking
for an alternative sustainable energy resource.
3.1.2 Market Size
The HYDROSURGE’s market size includes the residents of Rizal ranging in age
from 20 to 59 years old. The market population of the province grows 2.94% every 5
years based on the calculation of the annual population growth rate from the Year 1
to Year 5 with the residents count of 2,095,058 in Year 1 and 2,403,503 in Year 2.

Table No. 3 Market Size
Figure No. 31 Market Size

The company has identified the annual population growth rate from Year 1 to
Year 5, which is 2.94%. After getting the value of annual growth rate, we multiply it
by 2,095,058 which is the total target market size in Year 1. It resulted in an increase
of 308,445 and then add it to Year 1’s target market size until we reach Year 5, and
the result is total size of 2,403,503.

Table No. 4 Total Market Size

3.1.3 Market Growth Rate
HYDROSURGE’s Coastal Defense Oscillating Body will provide sustainable
electricity to communities within the province of Rizal. The innovation is not just for
protection of shore beaches from high wave energy or strong waves, but it also
harnesses renewable energy from the waves that make up electricity. Mainly due to
the impact of a higher coal and crude oil importation cost trickle down to consumers
(Gamboa, 2022). The demand for electricity is rising, yet no new power supply is
coming to the market (AsianPower, 2021).
With a capital of PHP 500 million, HYDROSURGE can build up 5 units of
Oscillating body and submerged breakwater. This also includes the other expenses
such as the construction, transportation, worker’s salary, etc. The 5 units of
oscillating body can provide up from 4MW to 6MW per unit and that is total 20MW
to 30MW in a year, it can power up 24,440 to 36,660 households which consumed by
approximately 97,760 to 146,640 people. Through this information, HYDROSURGE
will know how many percent of the market to penetrate.
HYDROSURGE will launch its market with Province of Rizal as its target
market. With the information that it can power 24,440 to 36,660 households, the
company sets its target to penetrate the market by 6.8% for the first year (2023),
which is 142,464.
The Company intends to increase its penetration of the market by 3% each
year. With this, in the second year (2024) it will be 9.8%, which makes the target
market of 205,316, and for the third year (2025), the penetration rate will be 12.8%.
HYDROSURGE will have a target of 268,167.

Figure No. 32 Market Growth Rate
Table No. 5 Market Growth Rate
Table No. 6 Market Growth Rate

3.1.4 Market Trends
The Philippine Solar Energy market is expected to record a CAGR of 15%
during the forecast period (2022-2027) (Mordor Intelligence). The growing demand
for renewable sources of energy is expected to drive the market (Mordor

Intelligence). Solar energy is a renewable source, as well as wave and tidal energy.
The information gives us that the market for electricity power sources is in demand,
especially clean energy. The solar energy include that it is a sustainable alternative
to fossil fuels and has a low impact on the environment and the potential for any
country to produce it (Johnston, 2022). The people invest in renewable energy,
mostly solar energy, due to the great return of investment that can reach up to 20%.
The product of HYDROSURGE also offers technology that can harness
renewable energy, not solar but instead wave energy. It is also a great sustainable
alternative to fossil fuels. Since the Philippines is an Archipelagic country, bodies
of water surrounding it can be a source for energy. According to an internet site
called World Economic Forum, waves have the highest energy density of
renewable energy sources compared to other clean energy and it has the greatest
potential to be an important contributor to the world’s energy resilience (2022).
This means that wave energy is much more sustainable than solar energy which
also means that it can be a great business for supplying electricity.
3.2 Micro and Macro Environmental Analysis
3.2.1 Customer Analysis
Geographic:
HYDROSURGE is located in an urban environment along Ortigas Avenue
Extension, specifically at Paramount Plaza in the municipality of Cainta, Rizal. Being
situated near the city provides easy accessibility for customers and allows the
company to cater to both residential and commercial clients in the surrounding area.
Demographic:
The target age group for HYDROSURGE's products and services includes
property and infrastructure owners, such as businesses, governments, and
homeowners, who are typically between the ages of 15 and 60 years old. This
demographic range covers a wide range of individuals who may have a need for
sustainable coastal protection solutions.
Gender identity and religion:
HYDROSURGE is an inclusive company that does not discriminate or treat

consumers differently based on their sexual orientation or religious beliefs. The
company welcomes and serves customers of all genders and religious backgrounds,
as these factors do not affect their ability to avail the products and services provided.
Education and socio-economic type:
Consumers with higher education levels may have a better understanding of
the benefits of sustainable coastal protection solutions, such as an Oscillating Water
Column (OWC) coastal defense system. Additionally, HYDROSURGE's target
market primarily consists of middle-class consumers who have the financial means
to invest in sustainable coastal protection solutions.

Psychographic:
The target consumers for HYDROSURGE are those who prioritize
sustainability and are concerned about the impact of natural disasters and climate
change on coastal communities and the environment. They are interested in
innovative technologies that provide multiple benefits, such as coastal defense and
renewable energy generation. These consumers may hold opinions aligned with
environmentally friendly practices and regulations.
Behavioral:
The target consumers have likely experienced damage from storms or erosion
in the past and are now seeking proactive solutions to protect their property or
infrastructure. They are willing to invest in long-term solutions that can provide
ongoing benefits, such as renewable energy generation. These consumers actively
interact with products and services that offer sustainable coastal protection,
recognizing the value and importance of such solutions.
3.2.2 Competitive Analysis
Figure No. 33 Price and Quality Framework

HYDROSURGE assures our consumers that our product is of high quality;
making sure that suppliers come from our country and are a well-known and
trustworthy brand because we want to ensure the safety of our stakeholders.
Through numerous stages of thorough research and experimentation,

HYDROSURGE made sure that the products and services we offer will run for a
long time while making sure that we are living up to one of our core values which is
to be eco-friendly. Since we are a start-up business, our price varies mid, and we
want our product to be affordable because we want to have an edge against our
existing competitors in the market. HYDROSURGE's Coastal Defense: Oscillating
Body costs P5 per KW which is lower than our competitor's price. Since Meralco is
already established and is the biggest electricity provider in the Philippines, the
uniqueness of this innovation is to use renewable resources like water, unlike using
coals and fossil fuels which are resources that cannot be easily renewed and pollutes
the air which contributes to pollution and climate change.
In comparison to our direct competitor, Alterenergy is one of the businesses in
the Philippines that produces renewable energy. One of the things they did to
produce renewable energy was the Pililla Wind Farm in Rizal. In similar cases, they
desired to use natural resources to assist the community in achieving their goal.
Their greatest disadvantage is that they must be placed in windy areas to generate
enough wind to generate enough power.
3.2.3 SPEET Analysis
Social Factors: This product focuses more on targeting Local Government
Units or LGUs because this concerns the environment, which is their responsibility
for everyone’s welfare. Being a need, but not a want by most of the population can
be a factor that will affect the product.
Political Factors: Since HYDROSURGE’s Coastal Defense: Oscillating Body
aims to target Local Government Units as its investor, the government must be
responsible in the control and regulation in utilizing water resources. According to
Presidential Decree No. 1067 (December 31, 1976) instituted the Water Code of the
Philippines, providing for the utilization, exploitation, development, conservation,
and protection of water resources to be subject to the control and regulation of the
government through the NWRC.
Economic Factors: Inflation in the market and rise or sink in the economy of
the Philippines can affect the further usage of this product because the Local
Government Units or LGUs may not be able to support the innovation.
Environmental Factors: The sea level rise caused by climate change may not be
controllable or prevented, thus this product’s objective is to only lessen its effects.
Technological Factors: An innovation or copy-cats in the industry may
replicate this innovation and produce something that is only made from ideas.
Advancement in technology also can be a factor to consider in making this product.
3.2.4 TOWS Analysis
HYDROSURGE’s TOWS analysis is given below in a form of table to make it
look organized. Given are the internal and external factors that may impact the
company are included in the TOWS matrix.
Table No. 5
III.3 Marketing Strategies
3.3.1 Product Strategies

HYDROSURGE came up with the innovation of Coastal Defense Oscillating

Body, a combination of submerged breakwater and an Oscillating Body. It is an
environmentally friendly innovation that can be a habitat for marine life, the
submerged breakwater, and the oscillating body that harnesses wave energy that
converts to sustainable electricity.
Product
The innovation aims to protect the seashore from flood surges, and to prevent
beach erosion. HYDROSURGE also aims to supply large amounts of sustainable
electricity that was harnessed from renewable energy, which is wave energy, within
the target market. It ensures that it can help the country with the increasing rates of
demand of power energy through harnessing from clean source of energy.
Place
The company is located along the Ortigas Avenue Extension in Cainta, Rizal. It
is an accessible location in Cainta and has accessible transportation to reach the
establishment.
Employment
The company aims to give job opportunities to the people. Since the pandemic,
the unemployment rate has increased, and currently it barely copes up after 2 years.
The innovation gives opportunities to be employed in the factory. It also ensures
that this will help to increase the employment rate in the country.
3.3.2 Pricing Strategy
HYDROSURGE's Coastal Defense: Oscillating Body combines a submerged
breakwater with an Oscillating body, making it a unique product in the market. The
manufacturing cost for one kilometer of submerged breakwater and five oscillating
body devices amounts to $46 million or 2.5 billion pesos. This information was
discussed in the Market Profitability analysis.
Meralco, one of HYDROSURGE's prominent competitors in the power energy
supply industry, relies on non-renewable energy sources such as fossil fuels and
coal. They set their price at P9.6467 per kilowatt-hour (kWh). In contrast,
HYDROSURGE utilizes wave energy as a renewable energy source and offers a

lower price of P5 per kWh.
Given the high manufacturing cost, HYDROSURGE recognizes the need to
secure investments from various stakeholders, particularly the local government
unit (LGU). The company aims to negotiate with potential investors by highlighting
the attractive return on investment (ROI) for both investors and consumers. By
offering a sustainable and cost-effective energy solution, HYDROSURGE aims to
differentiate itself from competitors and create a win-win situation for investors and
consumers alike.
3.3.3 Distribution Strategy
In the business operating workflow of HYDROSURGE, after conducting
quality checks to ensure the high quality of their products, the equipment
manufactured in the factory is submerged into the body of water near the shore.
From there, the lines are connected to transmission towers, enabling the distribution
of electricity to consumers.
HYDROSURGE's E-commerce model follows a B2C (Business-to-Consumer)
approach. The company's primary goal is to serve individual consumers directly,
aiming to gain their trust and establish a personal working relationship with them.
This model allows HYDROSURGE to cater to the specific needs and preferences of
individual consumers and provide them with a seamless and personalized
experience.
3.3.4 Advertising and Promotional Strategy
HYDROSURGE plans to employ effective advertising techniques to attract
investors and promote their alternative electricity supply solution. They will utilize
social media platforms to feature video advertisements highlighting the benefits of
their product and appeal to a large audience. TV advertisements will also be used to
create awareness and showcase the advantages of their offering. In addition, the
company will develop an online website that serves as a digital billboard, providing
essential information and engaging with consumers. By implementing these
advertising strategies, HYDROSURGE aims to build brand recognition, expand their

customer base, and ensure widespread awareness of their innovative solution.

IV. Financial Aspect

4.1 Capital Expenditures (Start-Up Capital)
HYDROSURGE Capital Expenditures (One Time Cost)
Cash in Bank AMOUNT
Patent Protection PHP 5,000.00
Equipment and Machinery PHP 1,300,500.00
Interior Design/Renovation PHP 2,900,446.00
Computer and Software Programs PHP 135,020.00
Furniture and Fixtures PHP 36,000.00
Vehicle PHP 440,762,000.00
Permits, licenses, and other legal fees PHP 7,360,400.00
TOTAL CASH NEEDED TO START PHP 538,755,961.42
Table No. 6 Capital Expenditures

The list above is the Capital Expenditures that are needed to start the business.
The list includes the assets and liabilities of the company with Raw Material having
an accumulated PHP 440,762,000.00 to be used to produce the product. The total
Capital Expenditures are added up to PHP 979,517,962.00. which involves the rent,
office supplies, advertisement, equipment and machinery, interior design, vehicles,
computer, furniture and fixtures, property, insurance, permits, and the raw material.
4.2 Sources of Funds
HYDROSURGE Sources of Funds
Business Owner PHP 83,252,993.67
Sasutona, Roy Antoni T. PHP 81,526,486.83
Pascua, Precious Faith A. PHP 81,726,506.73
Layug, Edward Justin L. PHP 81,626,500.93
Cruz, Francis Tyrone F. PHP 81,625,506.83
Bibat, Kevin C. PHP 81,627,486.63
Las Marias, Luis Miguel S. PHP 81,628,596.81
Corpuz, Jhon David R. PHP 81,624,486.85
Certeza, Luis Keine C. PHP 81,626,491.33
Investors/Shareholders PHP 90,000,000.00
Investors/Shareholders PHP 90,000,000.00

Loan PHP 80,000,000.00
Total PHP 979,517,962.00
Table No. 7 Sources of Funds

HYDROSURGE have accumulated approximately PHP 900 million funds with
PHP 80 million loan to financially support and stabilize our project. The Business
Owner with PHP 83 million being the highest share holder as the partner of the
company, and Pascua, Precious Faith A., Sasutona, Roy Antoni T., Bibat, Kevin C.
Certeza, Luis Keine C., Corpuz, Jhon David R., Cruz Francis Tyrone F., Las Marias,
Luis Miguel S., Layug, Edward Justin L. with estimated shares of PHP 600 million.
4.3 Operating Expenditures
HYDROSURGE Operating Expenditures
Operational Expenditure Monthly Costs:
Advertising Expense PHP 36,000.00
Insurance Expense PHP 280,000.00
Miscellaneous Expense PHP 192,000.00
Supplies Expense PHP 5,000.00
Salaries and Wages Expense PHP 1,300,500.00
SSS, PhilHealth, PAG-IBIG PHP 1,589.25
Legal Expense PHP 195,000.00
Rent Expense PHP 2,900,446.00
Utilities Expense PHP 135,000.00
Repairs and Maintenance Expense PHP 10,757.00
TOTAL CASH NEEDED TO PHP 5,056,292.25
START
Table No. 8 Operating Expenditures

4.4 Income Statement

HYDROSURGE Income Statement
Sales PHP 1,487,882,760.00
(Less: Sales Discounts) PHP 750,000.00
Net Sales PHP 1,487,132,760.00
(Less: Cost of Goods Manufactured) PHP 12,500,000.00
Gross Profit PHP 1,474,632,760.00
(Less: Operating Expenses)
Advertising Expense PHP 432,000.00
Depreciation - Computer PHP 10,024.00
Depreciation - Equipment and PHP 229,068.00
Machinery
Depreciation - Vehicle PHP 639,996.00
Insurance Expense PHP 3,360,000.00
Miscellaneous Expense PHP 2,304,000.00
Rent Expense PHP 35,956,800.00
Repairs and Maintenance Expense PHP 129,084.00
Salaries and Wages Expense PHP 14,418,000.00
SSS, Philhealth, and PAG IBIG PHP 19,071.00
Supplies Expense PHP 60,000.00
Legal Expense 2,340,000.00
Utilities Expense PHP 1,620,000.00
Net Income Before Taxes (PHP 1,413,114,717.00)
Less: Income Taxes PHP 538,755,961.42
Net Income After Taxes (PHP 1,059,836,037.75)
Table No. 9 Income Statement

The table above shows the income statement of HYDROSURGE in which the
sales, net sales, gross profit, and income before tax is presented. The stated expenses

and income will depend on the number of operations conducted in the company.
This will help the company present financial performance and health of the business
in relation to its payback period and return on investment.
4.5. Payback Period
Total Capital PHP 538,755,961.42
Net Income PHP 1,059,836,037.75
Payback Period 6.10 years or 73 months
Table No. 10 Payback Period
Based on the calculation of the Payback Period, the company can recover its
initial investment in approximately 6.10 years or 73 months. This means that the
company can recoup its initial funds on an annual basis.

4.6 Return on Investment

Net Income PHP 1,059,836,037.75
Total Capital PHP 979,517,962.00
Return of Investment 10.8%
Table No. 11 Return of Investment

To further assess the profitability of the company's invested capital, we can
use the Return-on-Investment metric. With a net income of PHP 1,059,836,037.75
and a total capital cost of PHP 979,517,962.00, the Return on Investment is
approximately 10.8%.

V. Appendices
5.1 Partnership Agreement/ Company Bylaws and other legal requirements
documents.
APPENDIX A. BYLAWS
ARTICLE I — CORPORATE OFFICES
1.1 REGISTERED OFFICE.

The registered office of Hydro Surge shall be fixed in the corporation’s certificate of incorporation, as the
same may be amended and/or restated from time to time (as so amended and/or restated, the “Certificate”).
1.2 OTHER OFFICES.

The corporation’s Board of Directors (the “Board”) may at any time establish other offices at any place or
places where the corporation is qualified to do business.
ARTICLE II — MEETINGS OF STOCKHOLDERS
2.1 PLACE OF MEETINGS.

Meetings of stockholders shall be held at any place within or outside the Municipality of Cainta as
designated by the Board. The Board may, in its sole discretion, determine that a meeting of stockholders shall
not be held at any place, but may instead be held solely by means of remote communication. In the absence of
any such designation or determination, stockholders’ meetings shall be held at the corporation’s principal
executive office.
2.2 ANNUAL MEETING.

The annual meeting of stockholders shall be held each year on a date and at a time designated by the
Board. At the annual meeting, directors shall be elected, and any other proper business may be transacted.
2.3 ADJOURNED MEETING; NOTICE.

When a meeting is adjourned to another time or place, unless these bylaws otherwise require, notice need
not be given of the adjourned meeting if the time, place if any thereof, and the means of remote
communications if any by which stockholders and proxy holders may be deemed to be present in person and
vote at such adjourned meeting are announced at the meeting at which the adjournment is taken.
2.4 ADMINISTRATION OF THE MEETING.

Meetings of stockholders shall be presided over by the chairman of the Board or, in the absence thereof,
by such person as the chairman of the Board shall appoint, or, in the absence thereof or in the event that the
chairman shall fail to make such appointment, any officer of the corporation elected by the Board. In the
absence of the secretary of the corporation, the secretary of the meeting shall be such person as the chairman of
the meeting appoints.
ARTICLE III — DIRECTORS

3.0 POWERS.
Subject to the provisions of the DGCL and any limitations in the Certificate, the business and affairs of
the corporation shall be managed and all corporate powers shall be exercised by or under the direction of the
Board.
3.1 NUMBER OF DIRECTORS.

Subject to the rights of the holders of any series of Preferred Stock to elect directors under specified
circumstances, the authorized number of directors shall be determined from time to time by resolution of the
Board, provided the Board shall consist of at least five members. No reduction of the authorized number of
directors shall have the effect of removing any director before that director’s term of office expires.
3.2 ELECTION, QUALIFICATION AND TERM OF OFFICE OF DIRECTORS.

Except as provided in Section 3.4 and Section 3.13 of these bylaws, directors shall be elected at each
annual meeting of stockholders to hold office until the next annual meeting. Directors need not be stockholders
unless so required by the Certificate or these bylaws. The Certificate or these bylaws may prescribe other
qualifications for directors. Each director, including a director elected to fill a vacancy, shall hold office until
such director’s successor is elected and qualified or until such director’s earlier death, resignation or removal.
All elections of directors shall be by written ballot, unless otherwise provided in the Certificate. If
authorized by the Board, such requirement of a written ballot shall be satisfied by a ballot submitted by
electronic transmission, provided that any such electronic transmission must be either set forth or be submitted
with information from which it can be determined that the electronic transmission was authorized.
3.3 RESIGNATION AND VACANCIES.

Any director may resign at any time upon written notice or by electronic transmission to the chairman of
the Board, with a copy to the secretary of the corporation.
Subject to the rights of the holders of any series of Preferred Stock of the corporation then outstanding
and unless the Board otherwise determines, newly created directorships resulting from any increase in the
authorized number of directors, or any vacancies on the Board resulting from the death, resignation, retirement,
disqualification, removal from office or other cause shall, unless otherwise required by law, be filled by the
affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the
Board, or by a sole remaining director. When one or more directors resigns and the resignation is effective at a
future date, a majority of the directors then in office, including those who have so resigned, shall have power to
fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall
become effective, and each director so chosen shall hold office as provided in this section in the filling of other
vacancies.
3.4 PLACE OF MEETINGS; MEETINGS BY TELEPHONE.

The Board may hold meetings, both regular and special, either within or outside the Municipality of
Cainta
Unless otherwise restricted by the Certificate or these bylaws, members of the Board, or any committee
designated by the Board, may participate in a meeting of the Board, or any committee, by means of conference
telephone or other communications equipment by means of which all persons participating in the meeting can
hear each other, and such participation in a meeting shall constitute presence in person at the meeting.
3.5 REGULAR MEETINGS.

Regular meetings of the Board may be held with at least five business days prior notice at such time and
at such place as shall from time to time be determined by the Board.
3.6 SPECIAL MEETINGS; NOTICE.

Special meetings of the Board for any purpose or purposes may be called at any time by the chairman of
the Board, the chief executive officer, the secretary or any two directors. The person(s) authorized to call special
meetings of the Board may fix the place and time of the meeting.
Notice of the time and place of special meetings shall be:
(i) delivered personally by hand, by courier or by telephone;
(ii) sent by PH first-class mail, postage prepaid;
(iii) sent by facsimile; or
(iv) sent by electronic mail,
directed to each director at that director’s address, telephone number, facsimile number or electronic mail
address, as the case may be, as shown on the corporation’s records.
3.7 WAIVER OF NOTICE.

Whenever notice is required to be given under any provisions of the DGCL, the Certificate or these
bylaws, a written waiver thereof, signed by the person entitled to notice, or a waiver by electronic transmission
by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to
notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the
person attends a meeting solely for the express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not lawfully called or convened. Neither the business to be
transacted at, nor the purpose of, any regular or special meeting of the directors, or members of a committee of
directors, need be specified in any written waiver of notice or any waiver by electronic transmission unless so
required by the Certificate or these bylaws.
3.8 BOARD ACTION BY WRITTEN CONSENT WITHOUT A MEETING.

Unless otherwise restricted by the Certificate or these bylaws, any action required or permitted to be taken
at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the
Board or committee, as the case may be, consent thereto in writing or by electronic transmission and the writing
or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the Board or
committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in
electronic form if the minutes are maintained in electronic form.
3.9 ADJOURNED MEETING; NOTICE.

If a quorum is not present at any meeting of the Board, then a majority of the directors present thereat
may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a
quorum is present.
3.10 REMOVAL OF DIRECTORS.

Subject to the rights of the holders of any series of Preferred Stock then outstanding, any director or the
entire Board may be removed from office at any time, with or without cause, by the affirmative vote of the

holders of at least a majority of the voting power of the issued and outstanding shares of capital stock of the
corporation then entitled to vote in the election of directors.
ARTICLE IV — OFFICERS
5.1 OFFICERS.
The officers of the corporation shall be a chief executive officer and a secretary. The corporation may also
have, at the discretion of the Board, a chairman of the Board, a vice chairman of the Board, one or more
presidents, a chief financial officer, a treasurer, one or more vice presidents, one or more assistant vice
presidents, one or more assistant treasurers, one or more assistant secretaries, and any such other officers as may
be appointed in accordance with the provisions of these bylaws.
Any number of offices may be held by the same person, provided, however, that, except as provided in
Section 5.6 below, the chairman of the Board shall not hold any other office of the corporation.
5.2 APPOINTMENT OF OFFICERS.

The Board shall appoint the officers of the corporation, except such officers as may be appointed in
accordance with the provisions of Sections 5.3 of these bylaws, subject to the rights, if any, of an officer under
any contract of employment. Each officer shall hold office until his or her successor is elected and qualified or
until his or her earlier resignation or removal. A failure to elect officers shall not dissolve or otherwise affect the
corporation.
5.3 SUBORDINATE OFFICERS.

The Board may appoint, or empower the chief executive officer of the corporation, to appoint, such other
officers and agents as the business of the corporation may require. Each of such officers and agents shall hold
office for such period, have such authority, and perform such duties as are provided in these bylaws or as the
Board may from time to time determine.
5.4 REMOVAL AND RESIGNATION OF OFFICERS.

Any officer may be removed, either with or without cause, by an affirmative vote of the majority of the
Board at any regular or special meeting of the Board or, except in the case of an officer appointed by the Board,
by any officer upon whom such power of removal has been conferred by the Board.
Any officer may resign at any time by giving written notice to the corporation. Any resignation shall take
effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise
specified in the notice of resignation, the acceptance of the resignation shall not be necessary to make it
effective. Any resignation is without prejudice to the rights, if any, of the corporation under any contract to
which the officer is a party.
5.5 VACANCIES IN OFFICES.

Any vacancy occurring in any office of the corporation shall be filled by the Board or as provided in
Section 5.2.
5.6 CHAIRMAN OF THE BOARD.

The chairman of the Board shall be a member of the Board and, if present, preside at meetings of the
Board and exercise and perform such other powers and duties as may from time to time be assigned to him or
her by the Board or as may be prescribed by these bylaws.

The chairman shall be an Outside Director (as defined in the Certificate) and shall not hold any other
office of the corporation unless the appointment of the chairman is approved by two-thirds of the members of
the Board then in office, provided, however, that if there is no chief executive officer or president of the
corporation as a result of the death, resignation or removal of such officer, then the chairman of the Board may
also serve in an interim capacity as the chief executive officer of the corporation until the Board shall appoint a
new chief executive officer and, while serving in such interim capacity, shall have the powers and duties
prescribed in Section 5.7 of these bylaws.
5.7 CHIEF EXECUTIVE OFFICER.

Subject to the control of the Board and any supervisory powers the Board may give to the chairman of the
Board, the chief executive officer shall have general supervision, direction, and control of the business and
affairs of the corporation and shall see that all orders and resolutions of the Board are carried into effect. The
chief executive officer shall, together with any president or presidents of the corporation, also perform all duties
incidental to this office that may be required by law and all such other duties as are properly required of this
office by the Board of Directors. The chief executive officer shall serve as chairman of and preside at all
meetings of the stockholders. In the absence of the chairman of the Board, the chief executive officer shall
preside at all meetings of the Board.
Board or these bylaws.
5.8 REPRESENTATION OF SHARES OF OTHER CORPORATIONS.

The chairman of the Board, the chief executive officer, any president, any vice president, the treasurer,
the secretary or assistant secretary of this corporation, or any other person authorized by the Board, the chief
executive officer, a president or a vice president, is authorized to vote, represent, and exercise on behalf of this
corporation all rights incident to any and all shares or other equity interests of any other corporation or entity
standing in the name of this
corporation. The authority granted herein may be exercised either by such person directly or by any other
person authorized to do so by proxy or power of attorney duly executed by such person having the authority.
5.9 AUTHORITY AND DUTIES OF OFFICERS.

In addition to the foregoing authority and duties, all officers of the corporation shall respectively have
such authority and perform such duties in the management of the business of the corporation as may be
designated from time to time by the Board.
ARTICLE V — GENERAL MATTERS
6.1 CHECKS; DRAFTS; EVIDENCES OF INDEBTEDNESS.

From time to time, the Board shall determine by resolution which person or persons may sign or endorse
all checks, drafts, other orders for payment of money, notes or other evidences of indebtedness that are issued in
the name of or payable to the corporation, and only the persons so authorized shall sign or endorse those
instruments.
6.2 EXECUTION OF CORPORATE CONTRACTS AND INSTRUMENTS.

Except as otherwise provided in these bylaws, the Board, or any officers of the corporation authorized
thereby, may authorize any officer or officers, or agent or agents, to enter into any contract or execute any
instrument in the name of and on behalf of the corporation; such authority may be general or confined to
specific instances.

6.3 STOCK CERTIFICATES; PARTLY PAID SHARES.

The shares of the corporation shall be represented by certificates, provided that the Board may provide by
resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares.
Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to
the corporation. The corporation may issue the whole or any part of its shares as partly paid and subject to call
for the remainder of the consideration to be paid therefor. Upon the face or back of each stock certificate issued
to represent any such partly paid shares, and upon the books and records of the corporation in the case of
uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid
thereon shall be stated. Upon the declaration of any dividend on fully paid shares, the corporation shall declare a
dividend upon partly paid shares of the same class, but only upon the basis of the percentage of the
consideration actually paid thereon.
6.4 CONSTRUCTION; DEFINITIONS.

Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the
DGCL shall govern the construction of these bylaws. Without limiting the generality of this provision, the
singular number includes the plural, the plural number includes the singular, and the term “person” includes
both a corporation and a natural person.
6.5 DIVIDENDS.
The Board, subject to any restrictions contained in either (i) the DGCL, or (ii) the Certificate, may declare
and pay dividends upon the shares of its capital stock. Dividends may be paid in cash, in property, or in shares
of the corporation’s capital stock.
The Board may set apart out of any of the funds of the corporation available for dividends a reserve or
reserves for any proper purpose and may abolish any such reserve.
6.6 SEAL.
The corporation may adopt a corporate seal, which shall be adopted and which may be altered by the
Board. The corporation may use the corporate seal by causing it or a facsimile thereof to be impressed or
affixed or in any other manner reproduced.
6.7 TRANSFER OF STOCK.

Transfers of stock shall be made only upon the transfer books of the corporation kept at an office of the
corporation or by transfer agents designated to transfer shares of the stock of the corporation.
ARTICLE VI — AMENDMENTS
The bylaws of the corporation may be adopted, amended or repealed by a majority of the voting power of
the stockholders entitled to vote; provided, however, that the corporation may, in its Certificate, also confer the
power to adopt, amend or repeal bylaws upon the Board. The fact that such power has been so conferred upon
the Board shall not divest the stockholders of the power, nor limit their power to adopt, amend or repeal bylaws.
* * * * *
HYDROSURGE
CERTIFICATE OF ADOPTION OF AMENDED AND RESTATED BYLAWS

The undersigned hereby certifies that he or she is the duly elected, qualified, and acting Chief Executive
Officer of Hydro Surge and that the foregoing bylaws, were adopted as the corporation’s bylaws as of October
6, 2021, by the corporation’s board of directors on October 26, 2021
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this second day of October
2021.
Emmanuel Soriano
Emmanuel L. Soriano
Chief Executive Officer
APPENDIX B. BUSINESS PERMIT AND DTI REGISTRATION

5.2 Description of the logo and other promotional paraphernalia.

HYDROSURGE, as a company dedicated to cooperation and development,
embodies its mission and values through its logo. The logo features a prominent
light bulb, symbolizing the energy that powers HYDROSURGE's innovative
products and services. This light bulb represents the company's commitment to
providing sustainable and renewable electricity solutions to communities and
individuals. The rays of the sun depicted in the logo serve as a powerful
representation of the energy source used by HYDROSURGE. By incorporating the
light bulb and the rays of the sun in its logo, HYDROSURGE visually communicates
its vision of a future where electricity is generated in a sustainable and
environmentally friendly manner. It symbolizes the company's belief in the power of
technology and innovation to transform communities by providing them with
reliable and eco-friendly energy solutions.
5.4 Management Schedule and other management activities.

5.5 Entrepreneur Background

Soriano, Emmanuel L. – He is a graduate of Bachelor of Science in Business
Management at University of the Philippines. After graduating college, he decided
to start a business in the field of food industry, but it didn’t work out well. After
getting the return on his investment, he then started another business in hopes of
becoming successful. His hotel business became successful, and he was able to help
his fellow entrepreneurs by franchises and through his other branches.
Sasutona, Roy Antoni T. – He is a graduate of Bachelor of Science in Applied
Economics – Financial Economics at De La Salle University. He gained experience
through helping in his family business; with enough knowledge and expertise, he is
now the business owner of his own restaurant.
Pascua, Precious Faith A. – A college degree holder from Mapua University –
Bachelor of Advertising and Public Relations. She gained experience from her
family’s business which was then passed to her.
Las Marias, Luis Miguel S. – He graduated with a Bachelor of Science in
Information Technology with a Specialization in Innovation and Business at Far
Eastern Institute of Technology. In starting his career, he gained experiences by
going abroad to utilize his skills in countries that need his specialty.
Cruz, Francis Tyrone T. – Studied Bachelor of Science in Accountancy at
Polytechnic University of the Philippines and opened a water station business after

he graduated college.
Corpuz, Jhon David R. – Studied Bachelor of Science in Information
Technology with Specialization in Business Analytics. Started a shoe buy and sell
business during college, and when he graduated, he opened his own physical store
which resells shoes.
Layug, Edward Justin L. – A college degree holder from the University of
Santo Tomas, Bachelor of Science in Psychology. After graduating he applied for
HR BPO jobs and a few years later decided to open a clinic offering Psychotherapy.
Certeza, Luis Keine C. – Studied Bachelor of Science in Psychology at De La
Salle College of Saint Benilde. In his early career he pursued the medical path but
later shifted to business. He now has shares in hospitals that he worked at and is
now a business partner in a clinic.
Bibat, Kevin C. – Graduated from Adamson University, he pursued a course
related to technology, Bachelor of Science in Computer Science. He is now a
successful business owner of computer parts and accessories.

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STI COLLEGE ORTIGAS-CAINTA

Science, Technology, Engineering, & Mathematics Grade 12

SENIOR HIGH SCHOOL

SENIOR HIGH SCHOOL ii

Accepted in partial fulfillment of the requirements for the strand Science,

ROXANNE RAMINA T. CASTILLO

SENIOR HIGH SCHOOL iii

SENIOR HIGH SCHOOL iv

III.2 Micro and Macro Environmental Analysis

SENIOR HIGH SCHOOL v

The main innovation introduced by HYDROSURGE is the Coastal Defense

In terms of return-on-investment, HYDROSURGE anticipates achieving it in

I. Organization and Management Background

SENIOR HIGH SCHOOL vi

1.1 Vision, Mission, and Core Values

SENIOR HIGH SCHOOL vi

SENIOR HIGH SCHOOL vi

1.3 Organizational Chart and Management Team

Figure No. 2 Organizational Chart

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SENIOR HIGH SCHOOL 10

production and operational

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Production and Operations Management Department

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II. Production and Operation Aspect

Figure No. 3 Product Sketch 1

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Figure No. 4 Product Sketch 2

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2.2 Product Development Flowchart

Figure No. 5 Product Development Flowchart

Potential Profiting Markets:

 What does it look like?

 What is the product goal?

DESIGNING & DEVELOPMENT - To proceed, the second stage of this

Figure No. 6 Main Components of Coastal Defense: Oscillating Body

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PROTOTYPING - The next checkpoint in the process is prototyping. Since the

Furthermore, testing the prototype is an integral part of this step. As shown in

MARKETING ANALYSIS - Next, we move into the market assessment phase

SENIOR HIGH SCHOOL 17

LAUNCH - Upon successful testing and observation, the next step is

2.3 Technology Consideration

Figure No. 7 Internet Service Provider

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Connectivity to the internet is crucial for businesses to achieve optimal results.

Figure No. 6 Communication System

Communication plays a vital role in connecting the company, staff, and

Figure No. 8 Social Media Platform

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Social media is a powerful platform that connects people and allows

Figure No. 9 Office Floor Plan

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Figure No. 10 Office Building

The company is located at Paramount Plaza, KM17 Ortigas Avenue Extension,

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Figure No. 12 Stainless steel bar

Figure No. 13 Translator poles