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Cultura Documentos
Introduction
tropical region. Edible bananas are believed to have originated in the Indo-Malaysian
region reaching to northern Australia. They constitute the fourth largest fruit crop of the
world, following the grape, citrus fruits and the apple. World production is estimated to
percent from Southeast Asia, and seven percent from Africa. One-fifth of the crop is
exported to Europe, Canada, the United States and Japan as fresh fruit. India is the
leading banana producer in Asia, followed by Indonesia and then by Philippines. The
The Philippines, being one of the contenders for the title, “Banana
Capital of the World,” has innumerable banana plantations scattered across Mindanao.
Biggest producing region is Southern Mindanao capturing almost half of the country's
biggest banana producing provinces of Davao del Norte, Davao del Sur and Davao City
of Southern Mindanao region. Outside Mindanao, the biggest producing provinces are
Iloilo in Western Visayas and Isabela of Cagayan Valley. Most of the 337,082 hectares
conducted by World Bank, the few commercial plantings are located in Mindanao where
there are about 28,000 hectares of Cavendish bananas being produced for export.
banana as food can be in many ways -- from simply being peeled and eaten out of-hand
to being sliced and served in fruit cups and salads, sandwiches, custards and gelatins;
being mashed and incorporated into ice cream, bread, muffins, and cream pies. Ripe
bananas are often sliced lengthwise, fried in cooking oil, and re-cooked in sugar
caramel. Banana puree is important as infant food and can be successfully canned by
the addition of ascorbic acid to prevent discoloration. Because of seasonal gluts and
perishability and the tonnages of bananas and plantains that are not suitable for
marketing or export because of overripeness or stained peel or other defects, there has
these fruits.
Unripe banana has many food uses as well. In Zamboanga City, green
unripe bananas, boiled in skin and served with “haleia” or coconut milk caramel, are
popular. Sun-drying slices of unripe fruits and pulverizing make banana or plantain flour
or powder. One of the most popular unripe banana products is banana chips.
increasing in various parts of the world over the past 25 years and these products are
commonly found in retail groceries alongside potato chips and other snack foods.
'Carinosa' and 'Bungulan' bananas are favored for chip-making in Latin Amerca. In the
Philippines, the ‘Saba’ and ‘Cardava’ varieties are chosen for this purpose.
City. The idea stemmed from the proponent’s fondness for the product and the
prodigious source of banana in the area. The business and its initial product shall be
named MILES COMPANY and MR. YUMMY BANANA CHIPS, respectively. The banana
chips shall be distributed mainly to the canteens of the different primary, secondary, and
tertiary schools in Zamboanga City. Miles Company will also deliver to the grocery stores
The Mr. Yummy banana chips are delicious, crispy, and healthy snacks.
The banana chips have a sweet taste. They are made from the Filipino banana of
the Saba and Cardava variety. Smooth delicious bananas are picked in their mature
green stage, peeled, thinly sliced, honey sweetened and then fried in vegetable oil.
They are a nutritious snack because of the honey content. They do not contain
providing not only potassium but also calcium, carotene, vitamin C, and vitamin B6.
Each chip has an average size of 25-30 millimeters in diameter and thickness of
3-4 millimeters. The thin chips are deep-fried, and naturally cooled before packaging
The banana chips are packed by 50 grams in plastics. The label indicates the
business and product name, ingredients, weight, and business address and number.
Vision
In seven to eight years, Miles Company will be the biggest banana chips
manufacturer in Western Mindanao and will contribute to the Philippines banana chips
export market.
.
Mission
to the different school canteens, office canteens and grocery stores in Zamboanga City.
Values
4. Hardwork – in devoting energy and talents for the growth and success of the
business
Objectives
4. Gain access to the office canteens and the grocery stores in Zamboanga City
SWOT Analysis
A scan of the internal and external environment of the business indicates the
following:
Strengths:
before frying
and protein
Weaknesses:
Opportunities:
− There are more and more schools that are being put up in the city
− A supportive government indicates that there is a bright future for the firm
Threats:
Strategies
Strength-Opportunities:
− Extensively promote nutritious product to students of the different schools
Weaknesses-Opportunities:
− When sales volume increases due to increased demand for the product,
Strengths-Threats:
− Package and label product differently to attract even junk food eaters
Weakness-Threats:
three universities, three computer colleges, ad numerous colleges and institutes in the
records a total of three hundred fifty-two schools in all education level including pre-
school in school year 2007-2008. Two hundred forty-five (245) and one hundred one
number is six less than the recorded number of schools in school year 2006-2007. The
closing of twelve private elementary schools and the opening of one public high school,
three public pre-elementary schools and two private pre-elementary schools contributed
to the decrease.
and 176,079 students in the preschool, primary and secondary level in school years
More than ninety percent of the schools in Zamboanga City have their own
school canteens. A survey was conducted to thirty different schools located in the city
proper, east and west coast in Zamboanga City. Twenty-eight of the thirty schools have
canteens located inside the school and these canteens are owned by a cooperative of
Ten students for each of the twenty-eight schools were handed out
questionnaires to determine their purchases and purchase level from the canteens. Five
out of ten (50%) students visit and buy from the school canteen once a day either for
snacks, lunch, or school supplies; three students (30%) seldom go to the canteen (less
frequent than once a weekly) and buy school supplies and drinks. The remaining two
students (20%) never go to the canteen because they bring their own food and school
Three out of the five regular canteen goers are likely to buy snack food. Two out
of these three snack buyers prefer commercialized chips like Chippy and Piatos and
other junk foods. One prefers home made snacks like bico, cassava cakes, sandwiches,
and bananaque.
distribution of the product. Nine out of eleven pre-selected school canteens committed to
buy the product from the business. The Brent Hospital and College Inc. and Immaculate
Conception Archdiocese School are the two schools who responded “No” when asked if
they will buy the proposed product. All nine prefer the goods to be on consignment
basis. This term provides that each pack of 50 grams honeydipped banna chips is
priced at P6.00. Payment on the delivered goods for the day shall be made on the next
day’s delivery. The schools were chosen for their large population and the nearness of
each school from another. The latter reason will generate efficiency in the delivery and
collection of payment.
The following are schools/canteens which committed to buy the product, with
A. Marketing Mix
Product
Mr. Yummy banana chips are healthy and delicious snacks. Bananas are dipped
in honey syrup before fried. The product does not contain any preservative or additive.
The banana chips are packed by 50 grams in plastics and are each pack is
individually labeled.
Price
Each pack of 50 grams of banana chips is priced at P6.00. This is because the
desired gross profit margin is 75%. A unit cost of P2.18 with a gross margin of this rate
The price of the Mr. Yummy Banana Chips is not greatly different from the price
of the products of the competitors. In fact, the wholesale price of the Member Food
Dealer and Guiwan Special Banana Chips, which distributes to retail and convenience
stores, is also P6.00. Prices of other competitors range from P6.50 to P10.00.
Such differences in the prices, however, shall have the least significant effect in
the competition. Price is neither the competency nor strategy of the proposed business.
It shall focus instead in delivering banana chips product, unique and special for its honey
content.
Furthermore, the main distribution links of the competitors are the grocery stores
and convenience centers. These stores will sell the products at P9.00 to P15.00. Miles
Company shall do direct delivery of its products to the school canteens and stores at
P6.00.
Place or Distribution
The delicious and healthy banana chips product will be distributed mainly to
canteens of the different schools in Zamboanga City. Initially, it shall deliver to the
National High School West, Pilar College, Brent Hospital and College, STI College
Tetuan Campus, Zamboaga City High School Main and Immaculate Conception
Archdiocese School.
The first five schools above are located in the west area of the city while the last
three schools are located in the east. STI College, Southern City College and
Since the business aims to make it known also to non-school canteen customers,
it will deliver to retail stores in Guiwan, Tumaga, Canelar, Sta. Maria, and San Roque.
Cash collection shall be made on the following delivery. Given that delivery shall
be made daily, collection of the day’s delivery shall be made on the following day.
Collection from these non-school canteens and retail stores shall be made on the next
Saturday of delivery. This is to encourage these customers to buy and patronize the
proposed product.
Promotion
The business shall be promoted by word of mouth and through personal selling
efforts of the business proponent. Packaging and labeling will be enhanced more to
B. Competition
Price
Place of
Competitors Business
Distribution (of 50g
Location
pack)
1. KuKuh’s Banana Chips Sta. Maria, Canteens of P 7.00
Zamboanga City schools and
offices;
Convenience
stores
2. Member Food Dealer Banana Chips Canelar, Canteens of 6.00
Zamboanga City schools and
offices;
Convenience
stores in ZC
3. Ecoco Banana Chips Manila City Grocery 10.00
Stores
Nationwide
4. Guiwan Special Banana Chips Guiwan, Retail Stores; 6.00
Zamboanga City Bakeries
5. Food Trade Center Banana Chips Isabela City Canteens of 6.50
schools and
offices;
Convenience
stores in
Isabela City
and ZC
The banana chips products of the competitors listed in the foregoing page are
almost alike. Except ECOCO banana chips, which uses table banana or sweet plantain
of the Musa acuminata group like the lady finger (sulaybaguio) and ‘’Gros Michael”
(lakatan) bananas, all of the companies use saba and cardava. Peeled and sliced
bananas of these varieties are deep fried and packed in plastics. Miles Company,
however, shall soak the banana in honey syrup before frying. This shall result more
delicious and nutritious banana chips. This gives Miles Company edge over all its
competitors.
Political Factors
agencies like the Department of Trade and Industry and Department of Science and
Technology are supportive to entrepreneurs and the whole business sector. The current
political issue involving the ZTE project does affect the business directly or indirectly.
Economic Factors
business in the costing of the raw materials and pricing of the finished goods to a great
extent, it significantly affects the purchasing power of the money given to students as
allowance.
Socio-Cultural Factors
Mr. Yummy banana chips product competes with other snacks in capturing the
taste and preference of students who are the end customers of its market. These other
snacks include the potato chips of Jack and Jill Corporation, cheese curls and other junk
Technological Factors
Training on banana chip production in the future, can open doors to the use of
technology in the business. Technology, automation can increase the efficiency of the
production, in volume and quality and can therefore pave the way to banana chips
export.
VI. Operational Plan
A. Production Process
Raw
Materials
Inventory
Cooling
Packaging
Finished
Goods
Inventory
Production shall be daily, the cooking in the morning and manual packaging in
the afternoon. Finished goods for the day shall be delivered the following day. Goods
Bananas will be peeled and sliced. Peeling and slicing of one bunch and two
hands of bananas will take one hour and fifteen minutes. Ten kilograms of peeled and
sliced bananas shall be soaked in honey and sprinkled with sugar. The sliced bananas
will be soaked in honey syrup for thirty minutes and then drained. They shall be fried,
five kilograms first and then the remaining five. A cooking strainer shall be used to
facilitate the emerging and sieving from oil of cooked banana chips. Frying will only take
30 minutes for all ten kilograms. The cooked banana chips will then be spread over large
“bilao” atop with absorbent paper and will be cooled for one hour without manual or
Cooled banana chips are then packaged by 50 grams in plastics. They are
measured first using a small but precise weighing scale and should be 50 grams in
The following table summarizes the banana chips production process with the
Steps Timeframe
1. Peeling of bananas 45 minutes
2. Slicing of peeled bananas 30 minutes
3. Soaking in honey 30 minutes
4. Draining of the banana and sprinkling
with sugar 5 minutes
5. Frying of honeyed banana slices 30 minutes
6. Cooling of banana chips 60 minutes
7. Weighing and packaging of chips and
labelling of packs 280 minutes
TOTAL TIME 480 minutes
Manpower Requirement 1 employee
B. Suppliers
The business shall buy its weekly supply of seven and a half bunches of bananas
from the farmers in Dungcaan, east of Zamboanga City. The contact person in the area
is Ms. Marie Atilano, a relative of the business proponent. She resides in the area and
C. Schedule of Operations
The business shall operate from Monday to Saturday, from 8 A.M. to 5:00 P.M.
Purchase of raw materials and supplies shall be made every Saturday before the
production week. Banana chips produced during the day shall be sold in the following
day. Products completed during Fridays are made so for distribution to non-school
canteens and retail stores during Saturdays. This is because very few schools operate
on a Saturday. During semester breaks and school holidays, the business shall intensify
Collection from school canteens shall be made on the following delivery, that is,
on the following day. To encourage non-school canteens and retail stores, however,
collection from these customers shall be made on the next Saturday of delivery.
D. Business Location
The banana chips production shall be home based. The products shall be made
at the place where the proponent resides. It is a 4 meter by 9 meter house being rented
by the proponent from a relative, located in 132 San Jose Road, Baliwasan, Zamboanga
City. It is one of the two houses in the lot with area of 270 square meters. The other is a
One-half of the area of house shall be retained as the personal and sleeping
quarter of the proponent and the other half shall be made into a packaging area.
Cooking shall be held outside, in an outdoor kitchen adjacent to the packaging area.
VII. Organizational Plan
A. Business Organization
Initial Organization
The business, a sole proprietorship, shall initially employ only two employees.
The project proponent shall be the first and the manager and shall be responsible for the
purchase of raw materials and supplies, delivery of finished goods, dealing with
customers and prospective customers, and managing the finance of the business.
The second employee shall be responsible for the production: cooking in the
morning and packaging in the afternoon. He shall maintain the cleanliness of the kitchen,
the utensils and cooking wares and the production process in general. He must be:
- knows cooking
Five to six year from now, the following will be the business organization chart:
Manager
- promotes and delivers - maintains the books of the - Produces banana chips
products business and maintains its quality
business
B. Personnel Compensation
Employees of the business shall receive wage equivalent to the minimum daily
Zamboanga Peninsula. Wage Order No. RIX-13 prescribes the granting of P195.00
minimum to these employees. The employees of Martin Company are also entitled to
government mandated benefits and privileges: 13th Month Pay, SSS, Phil Health and
Pag-ibig.
For the monthly basic pay, the project proponent, the owner of the business
receives an equal pay to that of the other employee. Compensation of the manager is
charged to operating expense while the compensation of the other employee is partly
charged against cost of goods sold and partly against operating expenses. For the
compensation charged to cost of goods sold, he shall receive 15 centavos for every unit
A. Unit Costing
Unit cost is derived from the batch cost divided by the number of units each batch
Raw Materials
10 kilogram banana (peeled,
1 bunch and 2 hands of
bananas) P60 per bunch, 5 per hand P 70.00
2 botles of honey P75.00 per bottle 150.00
1.5 kilogram brown sugar P26.00 39.00
1liter cooking oil (to be used
only twice to maintain
quality) P83.75 41.88
Total Raw Materials P 300.88
Units Produced (of 50 grams) 190
Raw Materials Per Unit P 1.58
Packaging Cost Per Unit
Plastic P0.18 per piece P 0.18
Label P0.05 per pice 0.08 0.26
Direct Labor Per Unit 0.15
Factory Overhead (Wood P15 per cooking, 5 kilogram of
Coal) banana per cooking) 0.19
Unit Cost P 2.18
One hundred percent of banana as an input will produce only ninety-five percent of
banana chips as an output. This may be due to the loss of moist content of banana when
fried and cooled. The 10,000 kilograms of banana, therefore, will produce 9,500 grams
Daily production for the first year of operation is 190 units. Annual increase is
projected at 40 units for the four (4) additional school canteens to be captured each
year.
C. Mark-up
Desired gross profit per unit is 75%. Price of the banana chips, therefore, for the first
D. Merchandise Inventory
Only the goods produced at the last working day of the year are expected to
remain unsold at year end. This based on the assumption that delivery of goods produce
during the day will be delivered on the following day. Ending merchandise units will be
E. On Account
Only goods delivered to non-school canteen customers on the last Saturday of the
year are considered to be on account. For projection, a daily sale multiplied by 6 days
credit term for non-school canteen customers is equal to the Accounts Receivable at
year end.
Since all purchases are on cash basis, there shall be accounts payable at the end of
the year.
F. Fixed Assets
The following the fixed assets to be used in the conduct of the business and their
The straight line method of depreciation is used in computing for annual depreciation
expense.
The motorcycle vehicle to be used in the delivery of product shall be purchased from
EMCOR Veterans, Zamboanga City on installment basis. Down payment for the
purchase is P3, 500 and equal monthly installment is P2, 500 inclusive of interest, for 24
months. The present value of this future payments based on the 15% per annum interest
offer of EMCOR is P 51, 560.00. This amount added to the down payment amount is
Initial project cost is estimated at P 29,207.33 and shall be financed through a cash
Working capital of one (1) month is allotted for both production cost and operation
expense. The cost to acquire manufacturing equipment and the necessary down
payment and installment payment for the first month for the delivery equipment are also
Pre-Operating Expenses
Rental Deposits-3 months 2,100.00
Permits and Licences 4,000.00 6,100.00
Working Capital - Production Cost
(1 month)
Units to be Produced 4,940
Unit Cost 2.18 10,774.40
Working Capital - Operating Expenses
(1 month)
Wages Expense - Martin 4,649.80
Wages Expense -Worker 1 4,649.80
Office Supplies Expense 166.67
Gas, Oil, Transportation 2,166.67
Rent Expense 700.00 12,332.93
Total Initial Investment P 29,207.33
H. Operating Expenses
Operating expenses include wages expense, licenses and permits, oil, gasoline, and
based on the inflation rate of 5%. Wages expense increases by 10% annually.
The following income statements summarize the revenue, cost of goods sold and
expenses of the business. The profitability report shows increasing annual sales and
steady operating expenses. Annual net income increases every year, by more than
P25, 000.00.
Miles Company
INCOME STATEMENT
2009-2013
(in Philippine Pesos)
2009 2010 2011 2012 2013
The business reports its cash flow statements using indirect method.
The cash flow statements summarize the firm’s cash inflows and cash outflows or
cash receipts and cash disbursements, respectively. Cash inflows include cash
investments and cash from customers for products sold, while cash outflow include cash
paid for manufacturing costs and operating expenses, income tax payment to BIR, and
There are no additional cash investments. Payment of tax for the current year
operation shall be paid on the following year before the deadline, April 15 of the year.
Miles Company will have an increasing cash balance at year end because of
increasing sales. The table in the next page is a summary of the company’s cash
transactions.
Miles Company
CASH FLOWS STATEMENTS
2009-2013
(in Philippine Pesos)
2009 2010 2011 2012 2013
Miles Company
BALANCE SHEETS
2009-2013
(in Philippine Pesos)
2009 2010 2011 2012 2013
ASSETS
43,88 117,29 249,22 415,61 617,125
Cash 9.73 0.40 7.57 6.20 .63
Accounts 6,84 8,97 10,93 13,02 15,225
Receivable 0.00 0.00 5.00 0.00 .00
Merchandise 41 52 64 78 927
Inventory 4.20 6.47 8.93 2.32 .43
51,14 126,78 260,81 429,41 633,278
Total current assets 3.93 6.87 1.50 8.53 .06
LIABILITIES &
CAPITAL
27,69
Installment Payable 8.28 - - - -
Income Tax 18,83 41,30 59,09 77,42 96,184
Payable 3.69 0.20 7.07 9.81 .65
46,53 41,30 59,09 77,42 96,184
Total Liabilities 1.97 0.20 7.07 9.81 .65
liabilities and capital of the business. It shows an increasing asset value due primarily to
the increase of cash balance. Its only liability is the income tax payable which increases
as net income increases. Capital or net worth also increases because of the increasing
J. Financial Ratio
K.
APPICABLE FINANCIAL
STATEMENT RATIOS
2.7 3 4 5 6.
1. Current Ratio 2 .07 .41 .55 58
Current Assets 51,143.93 126,786.87 260,811.50 429,418.53 633,278.06
Current
Liabilities 18,833.69 41,300.20 59,097.07 77,429.81 96,184.65
0.1 0 0 0 0.
2. Debt Ratio 8 .24 .20 .17 15
Total Liabilities 18,833.69 41,300.20 59,097.07 77,429.81 96,184.65
Total Assets 104,578.46 173,745.34 301,293.91 463,424.88 660,808.36
0.5 0 0 0 0.
3. Equity Ratio 6 .76 .80 .83 85
Total Equity 58,046.49 132,445.14 242,196.84 385,995.06 564,623.70
Total Assets 104,578.46 173,745.34 301,293.91 463,424.88 660,808.36
0.3 0 0 0 0.
4. Debt to Equity Ratio 2 .31 .24 .20 17
Total Liabilities 18,833.69 41,300.20 59,097.07 77,429.81 96,184.65
Total Equity 58,046.49 132,445.14 242,196.84 385,995.06 564,623.70
5. Gross Profit Margin 0.64 0.65 0.64 0.64 0.63
Gross Profit 225,723.80 301,938.63 365,948.33 432,741.12 502,119.05
Sales 354,540.00 466,085.00 568,292.50 676,692.50 791,332.50
6. Operating Profit 0.1 0. 0. 0. 0.
Margin 5 25 30 33 35
Income before Interest
Tax 53,810.54 118,000.57 168,848.76 221,228.04 274,813.29
Sales 354,540.00 466,085.00 568,292.50 676,692.50 791,332.50
0.1 0. 0. 0. 0.
7. Cash Flow Margin 0 17 20 22 23
Cash flow from
operations 35,315.22 80,874.71 116,227.76 150,274.28 185,104.70
Sales 354,540.00 466,085.00 568,292.50 676,692.50 791,332.50
0.0 0. 0. 0. 0.
8. Net Profit Margin 8 16 19 21 23
Net Income 28,839.16 74,398.65 109,751.70 143,798.22 178,628.64
Net Sales 354,540.00 466,085.00 568,292.50 676,692.50 791,332.50
3.3 2. 1. 1. 1.
9. Asset Turnover 9 68 89 46 20
Net Sales 354,540.00 466,085.00 568,292.50 676,692.50 791,332.50
Ave. Total Assets 104,578.46 173,745.34 301,293.91 463,424.88 660,808.36
Current ratio measures the ability of the business to meet current obligations as
they become due. The increasing balance of cash and non-incurring of liability to trade
creditors and lenders contribute to the increasing solvency or current ratio of the
business. The increasing current ratio of Miles Company indicates that the company will
Debt ratio, equity ratio, and debt to equity ratio measure the proportion of liability
to assets, capital to assets, and liability to capital, respectively. These ratios measure the
financial strength of the business and cautions to creditors. The debt ratio of Martin
Company increases because of the increasing income tax payable and shall result to
increase in the debt to equity ratio. Inversely, the increasing debt ratio of the business
results to decreasing equity ratio. The financial ratios table in the preceding page shows
that the company will be financially strong in the coming operating years because of the
larger proportion of capital than liabilities in the financial structure of the business.
Gross profit margin, operating profit margin, cash flow margin and net profit margin
ratios used to measure the profitability of the business. Gross profit margin measures
the ability of a firm to control manufacturing costs and to pass along price increases
through sales to customers. But since pricing of the Martin Honeydipped Banana Chips
is based on a desired gross profit rate, the gross profit margin of the business is
The operating profit margin of the Miles Company is on an increasing trend. This
indicates the ability of the company to control operating expenses while sharply
increasing sales. Also, the increasing cash flow margin shows that the business shall
have no problem in converting sales to cash to enable it to expand and obtain market
share. There is also an increasing trend of the net profit margin of the business due to
The rate of return of investment shall assure prospective investors or partners that
there is money in the business. Miles Company has an increasing rate of return of
investment because of its overall efficiency in managing assets and generating profits.
For the purpose of capital budgeting analysis, net future cash inflows of the business
shall be matched with the initial project cost of P 29,207.33. The following cash flow
table shows the short payback period, positive net present vale and a high internal rate
Pre-
Operating 2009 2010 2011 2012 2013
Initial
Investment (29,207.33)
Amortization -
Vehicle (21,362.31) (27,698.28)
Net Income
after taxes 28,839.16 74,398.65 109,751.70 143,798.22 178,628.64
add:
depreciation 6,476.06 6,476.06 6,476.06 6,476.06 6,476.06
Add: salvage
value of motor 32,380.29
Net
Cashflow (29,207.33) 13,952.91 53,176.43 116,227.76 150,274.28 217,484.99
Cash
Balance (15,254.42) 37,922.01
PAY BACK
PERIOD 1.29
The above table shows that the high cash inflows provided by the business
operation shall result to a payback period of 1.29 years. This means that initial
that the business will receive as result of investing into the project. The Net Present
Value of the project is P 327,280.02, and this is the value that will be added to the initial
investment. Since, the NPV is positive, the project could be considered financially viable.
Internal rate of return is defined as the discount rate that equates the present value
of the project's future net cash flows with the project's initial cash outlay. If the IRR is
compared with the interest offered by banks or other risk-free investment instruments,
the IRR of 145% is much higher than the rate offered by investing to government bonds
such as T-bills. This means that this project is a more attractive investment.
IX. CONCLUSION
The business has a market and will grow in the future. Its honey content makes it
unique and thus be patronized by the target market. The target markets of Miles
Company are school canteens and retail stores. There are numerous schools existing
and being put up and canteens of these schools shall be the market of the business and
at the same time its network of distribution links. The Mr. Yummy Banana Chips shall
only be priced at P6.00, very affordable for school canteens who shall sell the same
Operationally, the proposed business is viable. Banana chips are easy to make
The business also requires very minimum number of personnel to run and its
Financially, it is feasible considering its low project cost and it profitability. Within
a period 1.29 years, the business capitalist can recover its initial investment of P
29,207.33. The business’ cash flows obtain a positive net present value adding
P327,280.02, to the initial investment and its internal rate of return is 145%. These figures
Most importantly, the business will contribute to the society by making available a
healthy product and employing unemployed individuals. It may start with only one, but
when it will grow, it will make a significant impact on the country’s workforce and in the
society.