Oliver

Southville International School and Colleges
Luxembourg St., BF Homes International, Las Piñas City 1740

Bachelor of Science in Entrepreneurship
KROF ENTERPRISES
A Business Implementation Report Presented to the Faculty
of College of Business Administration of
In Partial Fulfillment of the Course Requirements for the
Degree in
Submitted by:
Ralph Deiparine
Oliver Cedro
Uno Kazuki
Franz Diaz
October
2011
Luxembourg St., BF Homes International, Las Piñas City 1740 i
APPROVAL SHEET
This business implementation report of KROF ENTERPRISES,

prepared and submitted by Oliver Cedro, Ralph Deiparine, Kazuki
Uno, Franz Diaz , in partial fulfillment of the course requirements for
the degree of Bachelor of Science in Entrepreneurship, has been
examined and is recommended for acceptance and approval for oral
defense.
VIVIAN C. VILLA JUANA M. MACACHOR

Adviser Instructor
Committee on Oral Defense
RUPERTO JOSE H. MATEO

Member
VIOLETA A.V. LAZARO, Ph. D

Chairman
Accepted and approved in partial fulfillment of the requirements for the degree
of Bachelor of Science in Entrepreneurship.
VIOLETA A.V. LAZARO, Ph. D

College Dean
MARJORIE G. TANGOG
Vice President for Academics and Research
Luxembourg St., BF Homes International, Las Piñas City 1740 ii
TABLE OF CONTENTS
TITLE PAGE
APPROVAL SHEET i
TABLE OF CONTENTS ii
ACKNOWLEDGMENT iv
I.Executive Summary 1
II. Company Profile 3
Vision and Mission Statements4
Form of Ownership 4
Company History 4
Current Status 5
III. Products and Services 6
Description and Technical Specifications 7
Competitive Advantages and Disadvantages 8
Pricing Structure 9
Major Raw Materials And Other Inputs 9
Target Market 9
IV. Marketing 10
Competitive Analysis 11
Pricing Comparison 12
Marketing Strategy 12
Advertising 12
Location 13
V. Operations 14
Productions 15
Location 19
Legal Environment 20
Personnel 20
Inventory 20
List Of major Suppliers 20
Luxembourg St., BF Homes International, Las Piñas City 1740 iii
VI. Management and Organization 21

Management 22
Organization 22
Professional and advisory Support 23
Luxembourg St., BF Homes International, Las Piñas City 1740 iv
ACKNOWLEDGMENT
KROF ENTERPRISES would like to thank the following:
The dean, Dr. Violeta A. V. Lazaro, for the inspiration;
The instructor, Dr. Juana M. Macachor, for the encouragement and
guidance; The advisers, Ms. Vivian C. Villa and Mr. Ruperto Jose H.
Mateo for the expertise and knowledge in business and knowledge on
financial reports, respectively;
And THE LORD up high because of him all things are possible.
Luxembourg St., BF Homes International, Las Piñas City 1740 1
Section I
Executive Summary
KROF Enterprise is a business venture that specializes in shirt printing that gives
customers the freedom to choose what design they would like to be printed in the
shirts. The business venture is a sole proprietorship with a proprietor and 3 employees.
It is located at 21 Avelino street, Circulo Doce, BF Homes, Paranaque City.
The primary market for the business would be institutions (schools, businesses,
religious groups, etc.). But the business can also cater to individuals or small groups of
people who want a shirt that is totally unique and will satisfy their design specifications.
The proprietor believes that this market will stay strong since primarily clothing is a
necessity that man cannot forgo, and secondarily, the people have an underlying need
to have something that uniquely distinguishes them from others, and one form of
difference would be in the clothing they are wearing.
Marketing the product would be in the form of advertising through social media
sites, since the proprietor believes that in using these sites; the coverage would be wide
while keeping the cost of marketing at the very minimum level.
Initially, the business was supposed to be operated as a producer of custom t-shirts,

but due to financial constraints, the proprietor opted to have a consignment agreement
with a shirt-printing company, Illumination Designs, wherein Illumination Designs would
consign a number of shirts that KROF Enterprises would sell with a mark-up, and KROF
Enterprises subsequently remits the cost of goods sold to Illumination Designs.
As for the financing, the business would need a minimum amount of ten thousand
pesos (10000 php), and that would be used to pay for pre-operating expenses and
finance the first few projects that the venture would have. In using part of the
aforementioned money as financing for the first project, it would ensure that the
venture will deliver to the client their products, thus incurring profits. The profits from
the first project in turn will finance the next project, and so on.
Section II
Company Profile
A. Vision and Mission Statements
 Vision
The business aims to be one of the top custom-design T-shirt makers.
 Mission
The companys mission is to provide a customized T-shirt service that in

terms of quality is top-class by way of using the best quality fabric and high-
technology prints at an affordable price.
Form of Ownership
The business is a single proprietorship with all decision-making powers

relegated to the proprietor. There are three employees namely; the inventory
clerk, sales clerk and the designer. All three will be of equal rank.
B. Company History
The company was formed in June 2011 by four individuals: Oliver Cedro,
Ralph Deiparine, Kazuki Uno and Franz Diaz. The group thought of ways to earn
money and at the same time earn credit for the subject of Business Plan
Implementation. The group brainstormed day and night, until the group decided
that as a basic need of man, clothing would be a viable and cost-effective
opportunity to earn profit. The group further developed some of the details
(marketing, operations and financial projections) and decided to go ahead with
the business concept and registered it a month later (July 2011) as a single
proprietorship entity at the Department of Trade and Industry (DTI). KROF
ENTERPRISE initially started as a printing t-shirt business with old and used up
designs. Then the group realized that making t-shirts that sport unique designs
and designs made by the clients would be a better edge than the competition.
To confirm the suspicions, the group individually asked friends if they would
want a shirt that contains custom designs and designs made by them should
they ever want to have a shirt made. The feedback was a resounding yes, and
that cemented the decision to have custom-made and user designed shirts. The
name of our business was supposed to be FORK, from the weapon used by the
Greek god of the seas, Poseidon. Due to the circumstances of trade mark and
the name of the other company it becomes KROF ENTERPRISE. From here the
business materialized into a fully legal and functional venture who will serve the
customers to the best of the ventures ability.
C. Current Status
Currently, the status of the business is that it is still active in marketing

and scouring for potential customers. Additionally, the business is readying
itself for the eventual coming of the season, since the proprietor believes
that with the coming of the Christmas season, the number of prospective
clients will skyrocket.
In terms of operations, a physical store has been put up and is already
displaying a number of products ready for sale, and that the designer has
already come up with some simple designs and has already procured some
blank shirts, ready to be printed. The search for additional suppliers is also
ongoing, wherein the company will look for the lowest-priced shirts and
printing cost but without the sacrifice of quality. As of late the company has
contacted three printers: Illumination Designs, Ace Printmaster and RCJ
Printing services. The three will be added by more suppliers as the search for
other printers continue.
Section III
Products and Services
a.Technical Description
The shirts that would be used in servicing the needs of different

customers are made from poly-cotton and would be in a t-shirt configuration,
but the customer can specify if they would like their shirt in a polo-shirt or a
Henley-style shirt.
As for the color, the customer can specify also the

color they prefer, but the default color choices would be
initially limited to black, white, blue, yellow and red and
green. The shading for the colors of the shirt can also be
specified by the customer.
As for the design, the customer can specify which
design they would want to put in the shirt. But the
business would also have some in-house design templates
that can be used to inspire the customer in coming up
with their choice of design. The layout of the design can
also be specified by the customer, but the default layout
would be putting the design at the center of the shirt.
As for the printing method, again the customer will
have the liberty to specify which kind of printing method
they want to have in the shirt. The default would be silk
screen or computer sublimations printing methods.
b.Competitive Advantages and Disadvantages
i. Advantages
One of the advantages of the company is that it has already some

form of existing relationship with some of the suppliers. This is due to past
transactions and meet-ups with the representatives of both parties. Another
advantage is that the company has very little operating expenses, since the
business is located at the proprietors residence, and the only equipment
used would be a computer for designing the customer s preferred design.
The other advantage is the pricing, since the business has low operating
expenses, then the business can offer custom shirts for significantly less than
competition while maintaining the same quality as with the competitors.
ii. Disadvantages
The major disadvantage is that the business cannot control the

level of quality since the productions of the shirts are subcontracted to
outside printers and shirt-suppliers. Since the production is not in-house,
therefore the business cannot control the way the shirts are produced,
thus if the customer deems that the quality is inferior, then it would mean
the loss of profit and the potential repeat customer.
c. Pricing (Per Unit in Philippine Pesos)

Silk Screen Digital Printing
Shirt Cost 110 110
Silk Screen Cost 50 N/A

Digital Printing Cost N/A 60
Total Production Cost 160 170
Selling Price 260 280
Profit Margin 100 110
d. Major Raw Materials and Other Outputs
Description unit of Unit cost Total raw material

measurements cost
T-shirts 50 110 5500
Silk screen 50 160 8000
Digital Printing 60 170 8500
Total direct 160 440 22000

materials
e.Target Market
The primary target market would be students and young

professionals who are into visual art and want to express their ideas and
emotions using art. The secondary target market would be institutions (schools,
companies, foundations, etc.) who want to have a shirt that defines their identity
as an institution.
Section IV
Marketing
a. Competitive Analysis
SWOT
Factor Conclusion
Strength The company does not have a high overhead cost since the
shirts are printed through subcontracting.
Since the company does not have a high overhead cost so it
can sell the shirts at a lower price.
Another strength is that the company is located in the
business hub of BF Homes.
Weakness The company cannot control the quality of the product since it
is subcontracted to other printers.
Off-season, the company will have lower sales due to less
people having custom shirts made.
Opportunity The company has opportunity in that since it is located in a
bustling area of the barangay, the foot traffic and the volume
of people are high, thus ensuring good sales with enough
marketing efforts.
The area is also near schools, churches and businesses, which
are the target markets.
The holiday season presents a good opportunity for the group,
since many institutions are gearing up to have company,
school and group shirts made.
Threat There are also other competitors who will also market their
products to prospective customers.
The threat of suppliers raising the price of raw materials,
which will mean KROF will have to also raise prices for the
finished goods, is also visible.
b.Pricing Comparison (in Philippine Pesos- PHP)
Product KROF Enterprises Competitors

T-Shirt (Silk-Screen
260 300-350
printed)
T-Shirt (Digitally-
270 400-500
printed)
This table shows the comparison of pricing between KROF and the nearest
competitors. This shows that the business can lower its pricing since it has very minimal
overhead, unlike the competition which has big overhead as one can see in its pricing of
shirts. The pricing will serve as the primary competitive advantage of the business.
c.Marketing Strategy
The strategy of the business in terms of marketing is to initially inch

its way in the market by serving few customers and establishing relationships
with them, making them repeat customers eventually; and by inching, the
business would also gauge itself if it can already cope up with demands from
a bigger number of clients, along with repeat customers.
d.Advertising
In terms of advertising, the business would not use the usual practice
of using print and television, but will instead use the referral method of
advertising and also using the internet as a medium of advertisement by way
of social networking sites and an independent website.
f.Location
The location of the business is at #21 Avelino street, Circulo Doce subdivision,
Phase I, BF Homes, Paranaque City. Additionally, the location is the proprietor s
residence. The business is situated inside a private subdivision, which affords a level of
protection that is higher than if the business is located outside the subdivision. The
location is also near the commercial area of BF Homes, thus ensuring that there is heavy
foot and vehicular traffic.
Section V
Operations
I. Production
a. Consignment Procedures
 Proprietor of KROF contacts the supplier (Illumination Designs) and requests a
consignment agreement.
 Proprietor and suppliers representative negotiate over the pricing and mark-up
limit of the shirts.
 KROF employees collect the consigned products from supplier.
 KROF sells the suppliers products with the agreed-upon mark up.
 At the end of the day, KROF remits the cost of goods sold to supplier, and in turn
keeps the profit from the mark-up.
b. Purchasing Procedures
 Confirm from clients the items they wish to purchase
 Create desired inventory from client confirmation
 Send canvass (product and quantity) listing to supplier
 Supplier sends pricing based on listing
 Send PO to supplier and await for their shipment of the products
 Check the products for correct quantity ordered or for packaging compromise
 Pay to suppliers representative and request written proof of purchase
 Load the products inside the store
c. Inventory Management System

 Record date of delivery of products that were off-loaded
 Count the products to ensure that the purchase order was followed
 Stack the products neatly in the shelves
 Record the type of product and its quantity sold for every transaction
 From that, check and record remaining inventory levels daily
 Record total number of sales daily
d. Distribution Process
 Contact some of the potential clients
 Set an appointment with the clients
 Discuss design preferences for their shirts
 If they purchase directly in the store, issue proof of purchase or invoice
 If they order through phone, process their P.O. and deliver the products to
the specified location and present them an invoice.
e. Operations Process
 Off-load the product from the suppliers transport vehicles.
 Check product quantity if the order is correctly delivered.
 Check the products for signs of damage, or if the packaging is compromised.
 Arrange the products according to their type.
 Record the type of product and their quantity into the computer.
 Sell the products and record every transaction and create photocopies of the
invoices. The inventory clerk will do this.
 The sales clerk would make an official receipt after the inventory clerk makes
the invoice.
f. Store Operating Procedure

 Proprietor, Inventory clerk, sales clerk and designer prepared KROF
Enterprises stall at 6:00am.
 Proprietor officially opens the stall at 9:00 am. All employees work from 9:00
am to 12:00 nn
 Proprietor and Inventory Clerk took their lunch break from 12:00 nn to 12:30
pm.
 Designer and Sales Clerk in turn took their lunch break from 12:30 pm to 1:00
pm.
 Employees continue work from 1:00 pm to 5:00 pm
 By 5:30 pm, Inventory clerk checks the days ending inventory and records it.
Sales clerk collects all payments, invoices, receipts and inventory records and
hands it over to the proprietor.
 Employees close down the stall at 6:00 pm.
 This procedure was done for the duration of the Entrepville bazaar
(September 13-14, 2011
II. Location
.
Location Facts:
 The store is located in 21 Avelino St., Circulo Doce Subd., BF Homes, Paranaque
 Easy to access from Sucat Road and has a low-mid crime rate.
 Caltex and BDO are the nearest places of interest from the entrance to Circulo Doce.
 The store space is owned by the proprietor.
 Operating hours: 9:00am-3:00pm (Mon-Sat)
III. Legal Environment

For the legal requirements, the following were necessary:
 DTI Business Name registration (for Single Proprietorship)
 Barangay Clearance
o Endorsement from the president of the CDHAI
Basically, these are the permits needed to operate. The business has no
patent office legalities since the business has no logo.
IV. Personnel
Since the business is a sole proprietorship, the proprietor plans to open the business
with three employeesan inventory clerk, a sales clerk and a designer. This is due to
the fact that the business is relatively small, and the handling of the products is not
that intensive, since it is non-perishable items. Also, having too many workers will
result in a much bigger operations costing. The outsourced service that will initially
consist of a business mentor, an accountant and a legal counsel.
V. Suppliers
The primary supplier for the business in terms of shirts and the printing would be
Illumination Designs. This company is the consignor of the shirts that KROF
Enterprise displayed and sold during the Entrepville bazaar.
VI. Inventory
Initial inventory would be for 100 shirts of 2 color types: 50 pieces white and 50 pieces
black shirts.
Section VI
Management and Organization
I. Management and its Organization

This business would be operated as a single proprietorship business entity, with
all decision-making powers relegated to the proprietor. The proprietor would be
the head of the day-to-day activities of the business. Additionally, there would be
four employees who would work in the business. These are the designer,
inventory clerk and sales clerk. The three will be of equal rank, and are
subordinates to the proprietor.
Organizational Chart
Proprietor
Inventory Sales
Clerk Designer Clerk

Oliver

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Southville International School and Colleges

Luxembourg St., BF Homes International, Las Piñas City 1740

A Business Implementation Report Presented to the Faculty

of College of Business Administration of

Southville International School and Colleges

In Partial Fulfillment of the Course Requirements for the

Bachelor of Science in Entrepreneurship

This business implementation report of KROF ENTERPRISES,

VIVIAN C. VILLA JUANA M. MACACHOR

RUPERTO JOSE H. MATEO

VIOLETA A.V. LAZARO, Ph. D

VIOLETA A.V. LAZARO, Ph. D

VI. Management and Organization 21

KROF ENTERPRISES would like to thank the following:

The dean, Dr. Violeta A. V. Lazaro, for the inspiration;

The instructor, Dr. Juana M. Macachor, for the encouragement and

Mateo for the expertise and knowledge in business and knowledge on

financial reports, respectively;

Initially, the business was supposed to be operated as a producer of custom t-shirts,

A. Vision and Mission Statements

The business aims to be one of the top custom-design T-shirt makers.

The companys mission is to provide a customized T-shirt service that in

The business is a single proprietorship with all decision-making powers

Currently, the status of the business is that it is still active in marketing

The shirts that would be used in servicing the needs of different

As for the color, the customer can specify also the

One of the advantages of the company is that it has already some

The major disadvantage is that the business cannot control the

c. Pricing (Per Unit in Philippine Pesos)

Shirt Cost 110 110

Silk Screen Cost 50 N/A

Total Production Cost 160 170

Selling Price 260 280

Profit Margin 100 110

d. Major Raw Materials and Other Outputs

Description unit of Unit cost Total raw material

T-shirts 50 110 5500

Silk screen 50 160 8000

Digital Printing 60 170 8500

Total direct 160 440 22000

The primary target market would be students and young

b.Pricing Comparison (in Philippine Pesos- PHP)

Product KROF Enterprises Competitors

The strategy of the business in terms of marketing is to initially inch 

c. Inventory Management System

f. Store Operating Procedure

III. Legal Environment

I. Management and its Organization

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