ChipsCo Business Plan

Business Plan | Green Leafy Crackers
INTRODUCTION
Nutrition is a basic human need and a prerequisite for a healthy life. It is a
discipline that gives information about the different aspects of food composition and
presents many approaches to get the appropriate nourishment from food (Randhawa et
al., 2015). Nowadays, people are becoming well aware of the nutritional benefits of fresh
vegetables and fruits, and thereby searching for more diversity in their food to get the
utmost nutrition. The main focus of consumers is on those foods that are rich in vitamins
(A, C, and E), antioxidants, and minerals like potassium (K), calcium (Ca), and
magnesium (Mg). It is believed that green leafy vegetables and fresh fruits are gaining a
significant place in the food pyramid, being a good source of trace elements and other
bioactive compounds (Gibson and Hotz, 2001). These green leafy vegetables are
inexpensive, are easily and quickly cooked, and are rich in several nutrients such as
vitamins, minerals, proteins, etc. (Gopalan et al., 1971). The consumption of green leafy
vegetables could improve the nutritional status of poor rural and urban households
because these plants are rich sources of minerals, vitamins carotenoids and phenolic
agent.
According to Talukder et al. (2010) micronutrient malnutrition is a serious public
health problem among women and children in Bangladesh, Cambodia, Nepal and also the
Philippines. Nutritional problems are more severe; mostly people in the developed
countries also suffer from different forms of these nutritional problems (Gupta et al.,
2005). Nutritionists are now trying to encourage people for supplementation of green
leafy vegetables in nutritional recipes to combat with these micronutrient deficiencies
(Kala et al., 2004). Thus, green leafy vegetables are good source of micronutrients.
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NutriGreen company wants to help those individual who are health conscious and
have problems in their health which can cure only by the nutrients brought by malunggay
leaf, kangkong and kamote tops, chili, and saluyot leaf. The nutritious content are all put
together in a one healthy snack food called Green Leafy Crackers. Since crackers are
known as the all-time favorite snack foods of every individual, NutriGreen company with
the help of Green Leafy Crackers comes up with the idea that be a able to produce a more
healthy kind of chips in the country.
Most people think chips as a junk food, but now it can be a healthy snack food
because of this new and innovative product brought by NutriGreen Company.
VISION
NutriGreen envisions of becoming the first known crackers made by different
leaves manufacturer and well-trusted company in the country providing nutritious
delicacies for valued customer.
MISSION
To provide new, unique and delightful crakers with variety of flavors that will
satisfy the customers and to offer a healthy snacks for the individual who is conscious in
their health.
To ensure customer’s loyalty as they enjoyed and feel satisfied in purchasing the
product.
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EXECUTIVE SUMMARY
Type of Business
NutriGreen is a business owned by only one person, thus the type of the business
is a sole proprietorship. They chose this because it is easy to set-up and the least costly
among all forms of ownership. Bryan E. Panto is the owner of this business. Furthermore,
the owner faces unlimited liability; meaning the creditors of the business may go after the
personal assets of the owner if the business cannot pay them because there is no legal
distinction between the assets and the liabilities of a business and the owner. The benefits
and risks running an enterprise are acquired only of one individual which is the owner. It
is also helpful to avoid double taxation.
Nature of the Business
Food is essential part of our lives, therefore the way it is grown, processed and
transported is worth understanding and improving. Nowadays, because of the demand in
foods, producers will introduce healthier products and more innovative flavors to boost
industry growth.
NutriGreen is a manufacturing business that combines the raw materials and labor
in its production process and the goods. They buys product with the intention of using
them as materials in making and producing a new product. The business converts raw
materials into finished goods and then sells these goods to customers where they collect
the cash that will be used in next production of the business.
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Name of the Business
The business was named “NutriGreen” which means NUTRITIOUS GREEN
leafy vegetables because what they offer is not only a plain crakers rather a more
innovative one. It manufactures Green Leafy Crackers with variety of flavors
accompanied by malunggay leaf, kangkong and kamote tops, chili, and saluyot leaf
Product/Services
NutriGreen intends to offer a new, delightful and unique kind of crackers that will
make the customer to be curious and wonder what the taste is. Since malunggay, kamote,
kangkong, chli and saluyot are one of the healthy and affordable vegetables, as well as to
other crackers like fish crackers, the proponents decided to produce crackers with the the
horseradish leaves, chili leaves, sweet potato tops, chinese spinach and jute leaves as the
main ingredients. Most people think crackers as an unhealthy food but now you can buy
‘healthy’ crackers.
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Logo
Figure 1: Logo
Logo helps the business to be well known in the market and it is consider as the face
of the business. This logo is inspired by the idea and name of ChipsCo. It consists of
coconut tree and its fruit, chips and the word ChipsCO. In line with this, the color
accompanies psychology explanation.
The color brown brings the feeling of warmth, comfort and security in the mind of
customers while the green symbolizes the nature and natural world which represents the
serenity, good luck and health for every individual. The color red on the head of the chips
cartoon gets the viewer’s attention and makes people hungry. On the other hand, the
color yellow creates happiness and warmth and lastly the color orange creates playfulness
and stimulates emotions and appetites. In line with this, the chips at the back of coconut
tree show people happiness and a face of a satisfied individual that customer will
experience when they try the product. The coconut at the back of the syllable Co
represents the product that company offers which is chips made of coconut meat.
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Location
Green Leafy Crackers store will be located at old market Central Luzon State
STOPOVER 2
University, Science City of Muñoz, Nuueva Ecija. The proponents’ chose this location
because it is near the market where most of the people go by and easy to reach by the
target customers.
Highlights
The business named NutriGreen manufactured Green Leafy Crackers to produce
and introduce the product in the market. It is owned by only one person; therefore sole
proprietorship is the form of the business. It is located at Central Luzon State University,
Science City of Muñoz, Nueva Ecija particularly in the Old Market area to easily reach
the target market.
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Management Plan
The business is owned and operates by one person. It consists of six (6)
employees and uses line type organizational structure. The salaries and wages that are
given to employees are based on minimum wage of the province and their position in the
business. They also gave additional benefits for their employees and also implement
different Human Resource Policies and Office Policies to follow.
Marketing Plan
NutriGreen intends to offer a new, unique and innovative product Green Leafy
Crackers in the target market which are the residents of Central Luzon State University,
Sciance City of Muñoz Nueva, Ecija. It is a crakers made by leaves that flavored either
bittersweet and salted. Its indirect competitors are the crackers such as fish crackers and
snacks that sell in the market.
It is necessary to have strategies to maintain and retain the competitive advantage
of the business as well as the products. In every stage of the product, there’s a
corresponding strategies to stay in the competition. Sales projection is made to forecast
how many quantity of the product are the company’s going to produce in a single
production.
Production/Operation Plan
The business will always provide fresh raw materials needed to produce Green
Leafy Crackers products. The steps in making the product are also shown in this aspects
as well as the production schedule in units and quantity. It is also shows the total
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production cost incurred in making the product. The right waste disposal is also necessary
in the place of the business and the assurance of the business that the quality of their
product is in good condition and worth buying for.
Financial Plan
The total project cost of the overall operation of the business and the capital
investment of the owner is computed to know the net income or loss of the business. It
presents the sources and uses of funds, projected cash flow, projected balance sheet and
projected income statement. Furthermore, according to the projected income statement,
the business will generate income in the first year of operation amounting P337, 946.50.
The return on investment is also computed on this part of business plan as well as the
payback period of the business.
Socio-Economic Contributions
The company is not the only benefited on the business. It is also important that
economy and society are both benefited in existence of the business.
The business will provide employment and source of income for every individual
who has no job or who need one. It will provide a new kind of healthy product that will
help the society to reduce the unhealthy lifestyle of every individual. This is also
beneficial for the government because they can improve the economy through taxes that
business will pay.
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Marketing Plan
Product/Services
NutriGreen offers a kind of crackers that will make the market be curious that a
certain green leafy vegetables they are eating so plain is being innovated in the product
making, horseradish leaves, chili leaves, sweet potato tops, chinese spinach and jute
leaves has been the main ingredient of the said product. It has provided to produce a two-
flavored crackers such as sweetened and salted that addition of making the good more
delicious and more appreciated by the customers, the company leads the business to have
a great advantage if compared to other fruit chips existed in the market. The product has a
concept of making the packaging style more valuable to the customer that the company
decided to produce a bowl-shaped sweetened grated coconut meat called “bukayo”
where the chips is placed. Though the main product has high water content then, it is
being understood that the chips could not be like the other sold to market but what makes
the product more patronized is because the product is cholesterol free, gluten free and no
preservatives added. It is made naturally by only mixing sugar or salt to still preserve the
taste of coconut and to preserve its health benefits as well.
Target Market
Filipinos are food lovers. According to the survey of Nielsen Company, Filipino
consumers love a good snack and 74% viewed snacking as source of nutrition. It is
considered by many as a moment for sharing with family and friends. Since Filipinos are
the most environmentally conscious consumers along with Vietnamese, they always look
for the beneficial ingredients of the food, rating fiber as the most important attributes in
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the snack they eat. And according to FNRI National Nutrition Survey, more than 65% of
Filipinos are energy-deficient in their daily intake. Thus, the people who experiencing
energy deficiency and lack of nutrition in their body are the main target of this company.
It is also for those who are looking for nutritious snacks. It will only limit to the residents
of Central Luzon State University, Science City of Muñoz, Nueva Ecija where the
business is located. Specifically, the customers being targeted are the families and group
of friends in the said university while the company also target the canteens of the
universities to acquire the produced products to help the company easily be recognized
and to increase the rate of targeted customer eating a kind of health beneficial snack like
ChipsCo.
Competition
In the market, there are a lot of products like crackers existing already. To be more
specific, fish crackers is the primary competitor of the business because it is already
known by public and customers have tried the quality enough to find contentment in the
goods purchased. Fish crackers has its salted flavor and being done to a several process
that could decrease the health content of the product and does not preserved its taste.
Usually, the taste of just being sweet is only what the customer has paid for.
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Marketing Mix Strategies (7 P’s)
Products
When producing a product it should be considered that it undergoes such product
analysis where the product is being assured to have a high quality or knowing the nature
of the market. It also needed to determine how the market share is to be achieved and
whether the product deserves to be marketed resulting to an expected profit.
Figure 4: Bowl Shaped ‘bukayo’
Figure 3: Coconut Chips
Introduction Stage
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Green Leafy Crackers is new product that tries to claim a new space in the mind
of the consumers which differ to the product that offers by those existing businesses. It is
an innovative chips uses different kind of ingredient and different way of producing the
product that are not known in the market. People mostly buy a new product to try and see
if it is worth the pay, thus intensive distribution and promotion to this product is needed
to catch the attention of the market. While it is new, a large market must be targeted to
expose the product to consumer.
Growth Stage
To continuously increase the sales volume, it is better to maintain the price of the
product and gives people insights about the good and health benefits of it because
nutritional facts help in ensuring the quality of the product and also can attract more
customers that is health conscious.
Maturity Stage
In this stage of the product life cycle, increased promotion and Research &
Development will be used to help in supporting sales and profit. The product needs an
intensive promotion to become stable in the market and be competitive.
Decline Stage
Maintaining and harvesting the product can be one of the business strategies but if
the time comes that the product will gain no sales and demand, then it can drop the
product or let other company to acquire them.
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Pricing
Pricing is an important strategic issue to the companies in terms of giving prices
to the goods produced where they can maximize sales and profits through their
uniqueness in finding ways of stating prices of their product with regards to their goals
and objectives. It affects product features, channels decisions and promotion.
Table 1: Prices of Products
Table 1 shows the prices in every product item the business offers. It is classified into two
types which is salted green leafy crackers and sweetened green leafy cracrkers for
Php15.00 and the coconut chips for Php15.00.
Introduction Stage
Since Greem Leafy Crackers is new in the market and uses fresh raw materials,
the business sets low price through defining the total production cost divided by the total
products produced and then add a low mark-up to the product. The pricing of the product
includes the packages and other expenses as well. Although the strategy initially creates
loss profit will still be generated through word of mouth. The goods produced are priced
according to how it will be affordable to the customers and only increased the pricing
when the quantity demanded increases. Environmental factors are also taken into
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consideration while setting prices such as the increasing cost of horseradish leaves, chili
leaves, sweet potato tops, chinese spinach and jute leaves. If the cost of raw materials
such as coconuts increases, the total production cost will also increase.
Growth Stage
The business will establish a price higher than its competitors because of the
products uniqueness and being the first to introduce in the market. It helps maximizing
revenue of the business during its early life in the cycle. Since the product is new in the
market and has a competitive advantage to its competitors by having nutritional facts then
revenue maximization is gained without the need of accepting competitors offer with
their product.
Maturity Stage
At this stage, the business is offering a price lower than its competitors to avoid
the decreased of customers. Retaining the targeted market sales is the priority of the
business to ensure its future activities. In the minds of consumers, P99 compared to P100,
consumers will choose the P99 although it’s a minor distinction but makes a big
difference. Psychologically, prices ending in nine (9) were able to outsell even lower
prices for the same product.
Decline Stage
The business will price the product without having the intention of making a profit.
Instead, it is just for the business to still continue producing goods for the sake of its
existence.
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Promotion
Promotion serves as the gateway to make the product be known to the market
upon opening the business. It could be through the word of mouth or through a different
ways of providing advertisement, most specifically through radio and by providing flyers
that can be easily given to many people as they passes by second per second. A simple
method of about how a product or a service is being spread to customers, stakeholders
and the broader public support.
Introduction Stage
Providing an intensive advertisement that could be used to present every detail of
producing a product is a great method of the business in introducing it to the market. It
could be done either by direct or indirect communication providing to give a quality
product that could catch the attention of the customers to the attractiveness of its
packaging and services that might as well can get the customer loyalty given to that the
location of the business is at good area for the company not having a hard time to expand
or build another branches and offices. Flyers, letters and product offerings are other
strategies to be used to have an effective promotion.
Growth Stage
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The business will develop word-of-mouth procedure of promoting the product
through first trial of the goods. Since the first customer who tasted the product already try
it, then the company should encourage the early adopter customers to persuade their
friends, families or business colleagues to taste the product they have tried. By the use of
those people’s influence, they can bring customers to the company who can be reluctantly
being the first to try something new. Giving rewards also arouse the word-of-mouth
provided that they will give discount coupons and small gifts. Building customer loyalty
whenever they see an opportunity of building a market share before the competitors and
copy cats gain visibility.
Maturity Stage
During this stage the business will improve their promotion up to the extent of
extensive distribution through person-to-person selling for the company can build
relationships and get customers loyalty. The Research and Development supports the
sales of the product as it is well applied. Since there are unlimited resources for the
coconut, the business should start having direct connections to their valued customers.
Decline Stage
Having a low market growth and market share the operation of the business
depends to whether it will be disclosed or by letting competitors offer of having a market
share be accepted as the revenue for its production will be maximized.
Packaging
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Design of the packaging is an important part of product decision making. By
giving importance in this factor, the firm can gain competitive advantage. It is very
important in making and distributing the product because it must be safe and secured to
avoid contaminations or other unnecessary things that may happen especially if its foods.
It protects the product from dirt and ensures that it will reach the customer in a good
condition.
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Figure 5: Packaging of the product
Introduction Stage
The business gain competitive advantage through designing a packaging that
attracts and looks elegant to the customer because of its feature that can be describe like a
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souvenir type of wrapping the product. To make it properly sealed, metallic wire is used
as a ribbon to make it more presentable. Introducing a product with proper packaging is
good to make the business recognized by the market and it can be opened easily at the
moment the customer wants to eat.
Growth Stage
Packaging the product of the business lengthens the lifespan, physically protects,
and extends the usefulness of the product can affect a great factor in the production of the
goods. Being fully sealed and kept in a properly ventilated place ensures the package’s
capability to protect the product’s lifespan and usefulness reflects the quality of the
produced products. Effective packaging attracts and delights customers to retain their
loyalty towards the goods the firm’s produced.
Maturity Stage
In this stage, competitors and copy cats exist, thus the business will use a different
type of packaging to stay unique. Aside from the souvenir type of packaging the product
for the customer can bring it home or serve as a “pasalubong”. Another option is being
provided such as preparing an eco-friendly customized paper plates for ready to eat
coconut chips. It is one way of the business to continue its operation by which profit can
still be gained after selling it.
Decline Stage
As sales projection declines, the business will continue to operate through offering a
bundle of products with an affordable price like giving customer a chance to have the
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product at buy 1 take 1 package. It may not retain the number of customers but at least
people will keep buying the product.
Place
Searching where the business should be located is another factor how the product
is being known and well-introduced to the market. It consists of expected volume of the
target customers, their paying capacity and to determine if the customer has the interest to
purchase the good. It outlines how and where a company will place its products and
services in an attempt to gain market share and consumer purchases.
Introduction Stage
In this stage, the business will have a physical store located in the CLSU that will
be open to all customers such as students. This store is near the OLD market where most
students buy foods such as snacks. In this store, the management can accommodate all
possible customers who will buy the product. Receiving reservations of products or
orders is one of the firm strategies where customers can call to the store and make
reservations of how many goods they will purchase.
The business production area is separated to the selling store to avoid any
negative circumstances that may affect in producing and preparing the product. The
production or kitchen is placed at the back while the selling store is located in front where
the products will be distributed. Since it is only the beginning, the chosen places acquired
will just enough to give a space for the business in order to decrease the cost of expenses.
Growth Stage
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Since the firm offers a different flavors or varieties of products, open distribution
strategy is a best way to spread and distribute the products. The business will find
different sellers in other areas to distribute the goods.
Maturity Stage
Exclusively and intensively distributing the goods of the business through the
sellers assigned to each location will have the stability to find a market favorable to them.
Permitting other stores to retail their products means they are expanding their target
market. Selected stores who have the capability to sell the goods can help in accelerating
the demand of the customers and in increasing the sales of the business.
Decline Stage
The place where the business is located seems to decline the number of people
being targeted. Whenever there is a decline in the number of target market then the
competitors could show or can give an advantage of placing their product nearby the
place where the store is positioned. Resulting to low sales, the business will eventually
stop operating in that particular area and keeps on searching on a better place that will
suit to the market proceeding to the improvement of the product and developing the store
as it is being relocated.
People
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People are the most important of all aspect. People are the main reason why a
certain product can exist through their creativity of minds. These can give a big break in
order to make a plan possible and to make it happen that the operation of the business
will exist. As people considered the main asset of the business, it has the capability of
being an effective, motivated and intelligent enough to continue pursuing the success of
providing a company.
Introduction Stage
Every employee must be fit and qualified in marketing the product. The skills and
abilities like knowing how to persuade customers is needed to ensure the effectiveness
and efficiency of an employee. In addition, they should have the capability to respond on
how the customers reacted to the product they purchased. Knowledgeable and well-
trained employee contributes a great success in achieving the business goals and
objectives.
Growth Stage
Seminars related to entrepreneurship or making a business can help the employees
more productive and committed to their jobs. It increased the productivity of an employee
through enhancing their skills and abilities in making the product known to market.
Training makes employees attain the level of knowledge or skill about the work they
have to do and to work efficiently while aiming to fully understand the business.
Maturity Stage
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Employees must be motivated to increase their productivity and retain them in the
business. Benefits, rewards and awards can help to retain the loyalty of the employee and
be more motivated and committed to work.
Decline Stage
In this stage, the firm temporary layoff employees that are not much needed in the
production to decrease the salary expenses. These expenses will be allotted to the
production and maintaining the quality of the product.
Positioning
Positioning a product in the mind of the customer is difficult hence it will help the
business in retaining customers and gain their loyalty. Since the business is new with the
idea of coconut meat as the main ingredients of the product, it will leave in the mind of
the people as the first coconut chips in the country with a healthy benefits and oven baked
not fried chips which provide as a healthy snacks.
Positioning is necessary to meet the success of a new product while introducing it
to the market. It takes a variety of ways to position a product or service in every
customer’s heart and mind within the target market as they expect to have better results
while operating the business. It can be derived from the object attributes, competition,
application, the types of consumers involved, or the characteristics of the product class.
Introduction Stage
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The idea of the business is unique and being the first to produce this kind of
product. A well-positioned business can beat a comparable product offering. Being
known as a healthy snack, Green Leafy Crackers will have a space in the mind of
customers when it comes to health issues. Developing a product or a service is another
way on how a product or service is being positioned. Targeting different markets such as
kids and adults where sweet flavor is for the kids and the salted flavor for the adults have
more possibilities that the business can enter more opportunities in winning the market.
Growth Stage
Producing quality products can increase the image of the business which will
grow and gain customers loyalty. By sustaining the fact that the Green Leafy Crackers is
a healthy snack, customers will continuously purchase the product and it can build the
image of the business because its reputation is high.
Maturity Stage
The business will be defensive towards explaining that the firm is the original
producer of the product. Copy cats may exist in the market so this strategy makes a
clearer explanation to the customers. Promoting that the product has a common
denominator among its competitor like the banana chips and other chips that can be used
as a comparison of its competitive advantage.
Adapting to the needs and wants of the customers is the best way to stay in the
market. The business objective is to meet the demand of the customers and their
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expectations. The external environment plays a great factor in determining what
innovation is needed to meet the expectations of the customers.
Sales in
Item Monthly Annually
Volume
Bowl shaped ‘bukayo’ with flavored

30 780 9,360
coconut chips inside (sweetened)

30 780 9,360
coconut chips inside (salted)
Coconut Chips (sweetened) 30 780 9,360
Coconut Chips (salted) 30 780 9,360
Total 120 3,120 37,440
Sales Projection
Table 2: Planned Sales Volume/ Sales for a Single Product
Table 2 indicates the planned sales in volume of every product needed to produce in
daily, monthly and annually. It is stated that the business will produce 30 pcs of each type
of product with a total of 120 pcs per day.
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Bowl shaped ‘bukayo’ with flavored coconut chips

Coconut Chips (sweetened & salted) Total Projected Sales
inside (sweetened & salted)
Sales in
Year Price/unit Total Price/unit Total
Volume
Year 1 37,440 Php 25.00 Php936,000.00 Php20.00 Php748,800.00 Php 1,684,800.00
Year 2 39312 Php 26.00 Php1,022,112.00 Php21.00 Php825,552.00 Php 1,847,664.00
Year 3 41277.6 Php 27.00 Php1,114,495.20 Php22.00 Php908,107.20 Php 2,022,602.40
Year 4 43341.48 Php 28.00 Php1,213,561.44 Php23.00 Php996,854.04 Php 2,210,415.48
Year 5 45508.55 Php 29.00 Php1,319,748.07 Php24.00 Php1,092,205.30 Php 2,411,953.36

Table 3: Projected Sales
Table 3 illustrates the planned sales volume/sales for a single product of ChipsCo for the first five (5) years of the
operation. The sales in volume has a five percent (5%) increase every year and the price increased one peso (P1.00) due to the
price change of the raw materials needed to produce the product.
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Business Plan | ChipsCo
TECHNICAL/PRODUCTION PLAN
Production Operation Process
Table 4: Direct Raw Materials Requirement
Item Unit price Quantity Total
Coconut (for chips) P25.00/pc 40 pcs P1000.00
Coconut (for Bukayo) P25.00/pc 18 pcs P450.00
Sugar (brown) P44.00/kg 8 kg P352.00
Sugar (white) P56.00/kg ¼ kg P14.00
Salt P20/kg ¼ kg P5.00
Alaska Evap. 25/250 ml 1 P25.00
Total P1,846.00
Table 4 shows the direct raw materials used in producing the product. The
quantity needed for each item and their corresponding price are computed with the total
of P1, 846.00 in every production.
Step by Step Procedure
Steps in Producing Coconut Chips
1. Purchase the raw materials.

2. Prepare the ingredients.
3. Crack the shell of the coconut and get the meat.
4. Peel the coconut meat into thin slices.
5. Preheat the oven to 250*.
6. Mix the salt on peeled coconut meat (for Salted Flavor).
7. Mix sugar on peeled coconut meat (for Sweet Flavor).
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ABCD’licacy (Ang Buko Chips Delicacy)
8. Spread the mixture on a microwaveable plate.
9. Put in oven. Bake the flavored coconut meat and stir every 5-7 minutes until it
becomes golden brown.

10. After baked, turned the oven off and let it cool down.
11. Store in sealed jar or plastic.
12. Ready for distribution.
Steps in Producing ‘bukayo’ bowl shape
1. Prepare the ingredients.

2. Get coconut and cut it in the middle.
3. Wash the inside.
4. Start to grate the meat of coconut until nothing’s left.
5. Ready the frying pan in the stove over low heat.
6. Put the grated coconut meat together with the brown sugar.
7. Continuously stir until grated coconut is coated completely with sugar.
8. Get the molder and start to mold the sweetened grated coconut meat into a bowl
shape while it’s still hot.

9. Let it cool down for it to become thick and molded properly.
10. Package it with the flavored chips inside.
Salary
Position No. of Workers Daily Monthly Annually
Manager/Head 1 P360.00 P9,360.00 P112,320.00
Cook 1 P248.00 P6,448.00 P77376.00
Cashier 1 P300.00 P7,800.00 P93600.00
Worker 3 P248.00 P19,344.00 P232,128.00
Total P515,424.00
Table 5: Labor Requirement
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Table 5 indicates the labor requirement of the business. It shows the positions and
required number of workers in each position and their respective daily, monthly and
annually salary.
Table 6: Machinery/ Equipment Requirement

Machineries
Oven P2,345.00 1 P2,345.00
Refrigerator P24,950.00 1 P24,950.00
Stove P350.00 1 P350.00
P27,645.00
Tools/equipment
Chopping Board P25.00 1 P25.00
Coconut grater P15.00 2 P30.00
Food Keeper P60.00 2 P120.00
Frying pan P195.00 1 P195.00
Ladle P20.00 1 P20.00
Microwaveable
P60.00 2 P120.00
plate/tray
Molder P8.00 5 P40.00
Peeler P30.00 3 P90.00
Pair of plate P15.00 2 P30.00
Continuation
Knife P20.00 1 P20.00

Pair of spoon and
P25.00 2 P50.00
fork
P740.00
Total Cost P28,385.00
The table above shows the kitchen tools and equipment that will be used in the
production of coconut chips. The partnership lists only the exact tools and equipment that
will be need including the price per piece to know the total cost of the production tools.
30 | P a g e
Table 7: Indirect Materials
Plastic Wrapper (cellophane) P15.00/yard 8 P120.00
Metallic wire ribbon P5.00/yard 5 P25.00
Tape with designs P3.00/pc 10 P30.00
Paper cups (for juice) P1.00/pc 120 pcs P 100.00
Paper cups (for chips) P1.00/2pcs 60 pcs P30.00
Folder P3.00/pc 5 P15.00
Total Cost P 320.00
Table 7 illustrates the indirect material used to produce the final product and make
it more attractive for the consumers. It includes the material used in packaging and for the
free ‘buko’ juice.
UTILITY
Table 8: Utilities Expense per Month
Electricity P800.00
Water P500.00
Liquefied Petroleum Gasoline (LPG)
Gas Tank P570.00
31 | P a g e
TOTAL P1,870.00
Table 8 shows the utility expenses incurred in producing the product. The power
supply and water supply as well as the gas used with the total of P1, 870.00.
Production Schedule (monthly schedule)
Table 9: Production Schedule per Month

Total
Quantity per
Item No. of batch Production
batch
Cost

30 26 780
coconut chips inside (sweetened)

30 26 780
coconut chips inside (salted)
Coconut Chips (sweetened) 30 26 780
Coconut Chips (salted) 30 26 780
Table 8 shows the quantity per batch that the business will going to produce in
their desired number of batch which is 26. It also shows the total production cost of the
business within a month.
Production Cost (per unit and per year)
Table 9: Production Cost

Quantity Item Cost/unit Total
Bowl shaped ‘bukayo’ with flavored coconut

780 P32.00 P24,960.00
chips inside (sweetened)
Bowl shaped ‘bukayo’ with flavored coconut

780 P22.00 P17,160.00
chips inside (salted)
780 Coconut Chips (sweetened) P12.00 P9,360.00
32 | P a g e
780 Coconut Chips (salted) P9.00 P7,020.00
Table 9 shows the quantity needed in every product item with their corresponding
original cost per unit. The price is based on the computed total production cost.
Waste and Waste Disposal
Good food hygiene is essential for you to make or sell food that is safe to eat. The
business will be using simple waste disposal management. Inside the ChipsCo stall, it
will have trash cans for biodegradable and non-biodegradable that will be used in the
discarding of waste of the customers. This must be the way to preserve the cleanliness
of the stall. For the biodegradable, it will be put in the garbage bag then place it on
the roving garbage truck. On the other hand, non-biodegradable waste must to be
recycled or sell it to the junkshop. Through this, it will help the business to be more
presentable to the customers and to have clean surroundings that will improve the
ambiance of the stall and for the customers to be comfortable.
Quality Control System
Quality control (QC) is a procedure or set of procedures intended to ensure that a
manufactured product or performed service adheres to a defined set of quality criteria
or meets the requirements of the client or customer. The business will be using some
gear in the production process to ensure the quality of the product. It will be using an
apron, and hairnet to guarantee that there will be no hair fall while making the
33 | P a g e
product. Also, must be in gloves while mixing the slice coconut with its flavors to
secure that the product is clean.
MANAGEMENT PLAN
Legal Form of Business
The form of the business is the simplest, oldest and most common ownership, the
sole proprietorship in which only one individual acquires all the benefits, risks and
liabilities the company incurred. Through this, the owner of the business has total and
unlimited personal liability of the debts incurred by the business. He/she may operate on
his/her own or may employ others.
Organizational Structure
34 | P a g e
MANAGER
CASHIER COOK
WORKERS
Figure 6: Organizational Chart
Line type organization is being used because the business has just started the
business. It is known to be important to have a basis of how the business operates and
who takes charge of operating it. In this chart, it shows that the hierarchy is set based on
the organizational chart which gives a structure to the organization composed of
Manager, Cook and workers who should be cooperatively working effectively and
efficiently.
It is shown in the chart that all the employees are directly controlled by the
Manager.by the arrangement of levels in company in such type of organizational chart,
the designer of the chart is allowed to surely assign each roles with clarity and to let
viewers easily identify the positions in the business and the specific role or function each
people worked in.
The manager will supervise all the business activities and make decisions that will
help the business become a success. Cashier will provide the financial reports and profit
projection. Cook will do the production of the products with the help of workers.
Table 10: Qualifications of Officers 35 | P a g e

Job Title Job Description Job Specification
General Manager  He/she will supervise all  At least 25 years of age

 5 years of experience in
the business operation
the field
and help in making a
 Excellent, proven
decision to help the
interpersonal, verbal and
business to success.
written communications
 Responsible for
skills.
supervising all the
 Demonstrated ability to
operations to ensure
manage and supervise a
efficiency and
staff team.
profitability  Graduate in any four
 Increases management's
year business course
effectiveness by  Proven ability to cope
recruiting, selecting, with conflict, stress and
orienting, training, crisis situations.
coaching and counseling  Proficiency with office
the employees computer equipment and

 Plan & review marketing software.
activities, results and
expectations with
employees
Cashier  Receive payment by cash  Must have at least
 Issue receipts, refunds, experience working as a
credits, or change due to store or boutique cashier.
customers.  Must have knowledge in
 Greet customers entering customer service.
establishments.  Knowledge in basic
 Establish or identify Mathematics.
prices of goods, services  Must have good
or admission, and communication skills
tabulate bills using knowledge in speaking
calculators, cash English.
36 | P a g e
registers, or optical price  Must be highly
scanners. motivated and must be
 Resolve customer
keen to details
complaints.  Must be trustworthy.
 Compute and record  Ability to read, count,
totals of transactions. and write to accurately
complete all
documentation.
Cook  Prepare food for service  Must have knowledge in
 Clean up station and take using different
care of leftover food machineries and kitchen
equipment such as oven
 Stock inventory  At least 1 year of
appropriately experience working as a
cook
 Comply with nutrition
and sanitation regulations
and safety standards
 Maintain a positive and

professional approach
with coworkers and
customers
Worker  Help the cook in  Must be physically fit

 Can work overtime
production
 Can work under pressure
 Peel, slice coconut
 Must be pessimistic and
 Start up and stop
hospitable
equipment.
 Clean production area.
 Feed or place items onto

equipment for
37 | P a g e
processing.
 Measure and mix

ingredients.
Table 11 represents the job analysis. The qualifications of each employee are
shown and their specific task in the business listed in this table.
HUMAN RESOURCE POLICIES
Human Resource Policies are the continuing guidelines on the approach in the
organization intend to adopt in managing its people. It represents specific guidelines to
HR mangers various matters concerning employments. It states about different aspects of
Human Resource management such as:
Recruitment and Hiring
Recruitment
The business will conduct job posting in searching for people that will suit and
can be reliable to do a certain job in the operation of the business. Distribution of fliers
are done to give opportunities to people to be a part of the company and social media is
also preferred to be a way of recruiting people.
Screening
38 | P a g e
The management starts to collect the application forms after the jobs are put into
the publicity and start a quick evaluation if the applicants passed the stated specifications
and descriptions.
Interview
The employer will meet the qualified candidates in the main office to know more
about of their educational background, work experiences that could be related to the job
they are applying for and to choose applicants that are willing to undergo further test.
Medical and Physical Examinations
The qualified candidates are required to undergo some medical examination such as drug
testing and checkups to find out if the applicants are physically compatible and can work
productive to avoid additional cost for the organization in case.
Orientation and Training Program
It is important that the newly hired employees will undergo to an orientation
program for them to familiarize the workplace and to be aware to the office policies.
These program gain employee commitments which help to understand organization’s
expectations and what takes employees tailored to specific job is training. Oftentimes,
business provides guest speakers for this particular event.
Legal Forms
39 | P a g e
All applicants are required to show their application form or resume and if
someone doesn’t follow any of the legislative requirements and regulations, serious
penalties are imposed. These legal forms could greatly affect the business.
Compensation and Benefits
Table 12: Compensation

Job Title Salaries
Daily (Php) Monthly (Php) Annually (Php)
Manager 360 9,360 112,320
Cashier 248 6, 448 77, 376
Cook 300 7,800 93, 600
Worker (3) 744 (248 each) 19,344 232,128
Total 515,424
The table shows the employees compensation per day, per month and per year.
The manager has the highest salary. Salary of employees depends on their positions and
types of their work. Their salary is based from the minimum wage of Central Luzon.
40 | P a g e
Salaries
The form of payment is in cash or legal tender, wherein it shall be paid at least
once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days. It
shall be made at or near the place of undertaking, except as otherwise provided by such
regulations as the Secretary of Labor and Employment may prescribe.
Benefits
The employees will received a Christmas bonus and if times of sickness, the
employer will provide a sick leave with corresponding fee for doctor’s consultation. If
employees fully give their best in doing the business then, they will be receiving a non-
monetary reward such as receiving a certificate with the title of “best employee of the
year” with a corresponding gift certificate.
Normal Hours of Work
The normal working hours of Coco chips employees is eight (8) hours per day. If
need to work beyond its stated hours of work, it is considered overtime. As stated in the
Manual of Labor Standards, it has an additional compensation of 25% of the hourly rate
for work performed on an ordinary day.
Rest Day
41 | P a g e
Employees of the business have a rest period every Sunday. The business
operation will stop every Sunday as a day-off of every employee.
Meal Periods
Each staff member gets an unpaid lunch break near the middle of the work day,
unless the work day is five hours or less. As stated in Article 89 under book three of the
Labor Code, employees must have not less than (1) hour time-off for regular meals and it
is not compensable.
Breaks
You get a paid 10-minute rest break at approximately the middle of every four
hours of work not broken by a meal period.
Job Abandonment
If you are absent from work for two days and fail to contact your employer, you
may be released for job abandonment.
Medical and Dental Services
The business will assure that they are in right conditions to perform their jobs and
also to protect them from the hazards and risks to their health that they will happenstance
when performing their jobs. Other concerns about medical and dental services are
enumerated from Articles 156 to 161 of the Labor Code.
Occupational Health and Safety
42 | P a g e
The business will surely provide a hazardous free work place for workers. They
will also provide instructions to all workers though posters include steps to do in case of
emergency. As obligation, the management will do corresponding actions needed to help
the injured worker.
OFFICE POLICIES
Equal Employment Policy
This policy aims to practice zero discrimination existing in any aspects of job.
The business provides equal employment opportunities.
Attendance Policy
All staff members are responsible, individually, for recording their time on the
attendance sheet and/or card. It will not consider any invalid absences unless if
the reason of their absence is because of illness or disability or they will apply for
unpaid leave absences.
Safety Policy
43 | P a g e
The business should guarantee that every employee are free from any hazards and
risks in order to find out that their workplace are convenient, safe and in excellent
condition.
Drug and Alcohol Policy
The employees are restricted prohibited to perform their jobs under the influence and
misused of illicit drugs and alcohol.
Smoking Policy
Smoking is prohibited during working hours. Employees should smoke only
during free time to those areas which are designated for smoking.
Sleeping While on Duty Policy
This is an unprofessional act. Employees who are sleeping while on duty will lead
on discharging them from their jobs.
Terms of At-Will Employment
The “terms of at-will employment agreement” is not to be considered as creating
a contractual relationship between the employee and the employer. Therefore, unless
otherwise defined in writing, such relationship shall be defined as “employment at
will,” where either party is free at any time to dissolve the relationship. The terms of
at-will employment agreement addresses such items as compensation, wage and
salary reviews, employee classification and position and responsibilities.
44 | P a g e
Distribution of Policy
The Master Manual is kept in an appointed place in the office. All employees will
be given a copy of all policies for their personal use.
Those practices are open to change. Changes happen as a result of internal
growth, legal requirements, competitive forces or general economic conditions that are
largely affect in the organization. The following policies are designed to provide
working guidelines for the employee and its relationship to the employer.
Written office policies help to:
 Prevent misunderstanding and lack of communication;
 Eliminate hasty, unrefined decisions in personnel matters; and
 Assure uniformity and fairness throughout the practice.
45 | P a g e
FINANCIAL PLAN
Table 13: Total Project Cost
Item Category Debt Equity Total
A Fixed Capital Cost
1 Machineries - P27,645.00
2 Tools and Equipment - P740.00
3 Contingency - P5,000.00 P33,385.00
B Pre-Operating Cost
1 Marketing and Promotion - P5,000.00
2 Recruitment and Training - P5,000.00
3 Legal Permits - P2,050.00 P12,050.00
C Initial Working Capital
1 Current Assets -
46 | P a g e
a. Direct Raw Materials - P575,952.00
b. Indirect Materials - P99,840.00 P675,792.00
Pre-Operating Production
2
Cost
a. Salaries and Wages - P515,424.00
b. Utilities Expense -
1. Power Supply Expense - P9,600.00
2. Water Supply - P6,000.00
3.Gas Tank - P6,840.00
c. Rent Expense - P48,000.00
d. Other Expense - - P585,864.00
Total Project
P1,307,091.00
Cost
This table shows the total fixed capital cost of P33,385.00, pre-operating cost of
P12,050.00, initial woking capital of P675,792.00 in the current asset and pre-operating
production cost of P585,864.00 resulting at the total projected cost of P1,307,091.00.
Table 14: Sources and Uses of Funds
Cash Contribution
Estareja Capital P1,000,000.00
Total Cash Inflow P1,000,000.00
Less:
Direct Raw Materials P575,952.00
Indirect Materials P99,840.00
Machineries P27,645.00
47 | P a g e
Tools and Equipment P740.00
Contingency P5,000.00
Total Cash Outflow P709,177.00
Cash Balance, End P290,823.00
This table shows that the fund used in the business which is P1, 000,000.00 came
from Mr. Estareja. It is also shown in the table that the total cash flow of P709,177.00
lead to the ending cash balance of P290,823.00.
48 | P a g e
Projected Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Net Income P337,946.50 P476,384.16 P625,916.28 P787,295.14 P961,317.40
Depreciation:
Machineries P2,799.50 P2,799.50 P799.50 P2,799.50 P2,799.50
Tools and P148.00 P148.00 P148.00 P148.00 P148.00

Equipment
Total Cash P340,894.00 P479,331.66 P628,863.78 P790,242.64 P964,264.90

Flow
Cash P290,823.00 P631,717.00 P1,111,048.66 P1,739,912.44 P2,530,155.08

Beginning
Cash Ending P631,717.00 P1,111,048.66 P1,739,912.44 P2,530,155.08 P3,494,419.97
Projected Financial Statement
Table 15: Projected Cash Flow Statement
49 | P a g e
The table shows that the projected cash flow for the year 1 is P340, 894.00, year 2
P479, 331.66, year 3 is P268, 863.78, year 4 is P790, 242.64 and for the year 5 is P964,
264.00. It also shows the total projected cash ending of the business
50 | P a g e
Table 16: Projected Income Statement
This table shows the projected income statement of the business in 5 years of operation. For the first year, the net
income is from P337, 946.50 and continuously increases until year 5 with a total amount of P961, 317.40.
51 | P a g e
Table 17: Projected Balance Sheet
This table shows the total liabilities and capital for the first year is P997, 947.50 and increases as year passes by until it is
amounted to P3, 842, 804.46 for the year 5.
52 | P a g e
PROFITABILITY INDICES
Table 18: Return on Investment
Return On Investment
Period Net Income Total Investment ROI
Year 1 Php337,946.50 Php1,346,462.34 0.25
Year 2 Php476,384.16 Php1,836,632.66 0.26
Year 3 Php625,916.28 Php2,476,610.81 0.25
Year 4 Php787,295.14 Php3,263,905.95 0.24
Year 5 Php961,317.40 Php4,239,566.46 0.23
This table shows that the Return on Investments is computed by the ratio of Net
Income/Loss and Total Owners' Equity resulting to an ROI at the rate of 25% for the first
year and has increase of 1% for the year 2. From year 3 to year 5, the rate of ROI
constantly decreases at 1%.
Table 19: Payback Period
Period Annual Net Income

Year 1 Php337,946.50
Year 2 Php476,384.16
Year 3 Php625,916.28
Year 4 Php787,295.14
Year 5 Php961,317.40
Total Php3,188,859.47
Ave. Income Php637,771.89
Payback Period
Initial Php1,000,000.00
Investment
Ave. Income Php637,771.89
1.57
53 | P a g e
In this table, it is shown that 1 year and 208 days is the payback period which
means that all the investment or loan is being recovered.
Major Assumptions Used
In this part of the business plan, the proponents had an assumption of 10 years as
the useful life of the machineries except the stove which only lasts in 5 years which is
similar to the tools and equipment. The accumulated depreciation computed has no
salvage value at the end of the projected year.
The demand of the product is assumed to increase at the rate of 5% annually and
the owners tend to increase their selling price to 1 peso (P1.00) every year because of the
increasine price of the raw materials that will be needed.
In terms of the inventory such as the direct raw materials and indirect materials,
rate of 2% is assumed while overhead such as other expenses are assumed to increase at
the rate of 5% similar to the assumption on rent expenses.
54 | P a g e
Reference:
http://www.netmba.com/marketing/pricing/
http://www.brighthub.com/office/entrepreneurs/articles/86538.aspx
http://www.more-for-small-business.com/product-positioning.html
http://yourbusiness.azcentral.com/different-marketing-strategies-product-its-growth-
stage-14555.html
http://www.coconutresearchcenter.org/
http://www.westonaprice.org/knowyourfast/coconut-oil-studies.html
http://www.accountingverse.com/accounting-basics/types-of-business.html
55 | P a g e

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Business Plan | Green Leafy Crackers

Nutrition is a basic human need and a prerequisite for a healthy life. It is a

According to Talukder et al. (2010) micronutrient malnutrition is a serious public

leafy vegetables in nutritional recipes to combat with these micronutrient deficiencies

healthy kind of chips in the country.

because of this new and innovative product brought by NutriGreen Company.

NutriGreen envisions of becoming the first known crackers made by different

leaves manufacturer and well-trusted company in the country providing nutritious

delicacies for valued customer.

is also helpful to avoid double taxation.

Nature of the Business

transported is worth understanding and improving. Nowadays, because of the demand in

the cash that will be used in next production of the business.

The business was named “NutriGreen” which means NUTRITIOUS GREEN

innovative one. It manufactures Green Leafy Crackers with variety of flavors

accompanies psychology explanation.

The business named NutriGreen manufactured Green Leafy Crackers to produce

the target market.

different Human Resource Policies and Office Policies to follow.

snacks that sell in the market.

It is necessary to have strategies to maintain and retain the competitive advantage

corresponding strategies to stay in the competition. Sales projection is made to forecast

product is in good condition and worth buying for.

projected income statement. Furthermore, according to the projected income statement,

payback period of the business.

economy and society are both benefited in existence of the business.

business will pay.

decided to produce a bowl-shaped sweetened grated coconut meat called “bukayo”

taste of coconut and to preserve its health benefits as well.

When producing a product it should be considered that it undergoes such product

whether the product deserves to be marketed resulting to an expected profit.

Figure 4: Bowl Shaped ‘bukayo’

Figure 3: Coconut Chips

expose the product to consumer.

customers that is health conscious.

intensive promotion to become stable in the market and be competitive.

product or let other company to acquire them.

Pricing is an important strategic issue to the companies in terms of giving prices

and objectives. It affects product features, channels decisions and promotion.

Table 1: Prices of Products

Php15.00 and the coconut chips for Php15.00.

prices for the same product.

method of about how a product or a service is being spread to customers, stakeholders

and the broader public support.

Providing an intensive advertisement that could be used to present every detail of

producing a product is a great method of the business in introducing it to the market. It

could be done either by direct or indirect communication providing to give a quality

strategies to be used to have an effective promotion.

copy cats gain visibility.

depends to whether it will be disclosed or by letting competitors offer of having a market

share be accepted as the revenue for its production will be maximized.

Figure 5: Packaging of the product

The business gain competitive advantage through designing a packaging that

as a ribbon to make it more presentable. Introducing a product with proper packaging is

moment the customer wants to eat.

loyalty towards the goods the firm’s produced.

still be gained after selling it.

people will keep buying the product.

services in an attempt to gain market share and consumer purchases.

reservations of how many goods they will purchase.

different sellers in other areas to distribute the goods.

Seminars related to entrepreneurship or making a business can help the employees

be more motivated and committed to work.

production and maintaining the quality of the product.