Chapter 1

Project Background and Company Description

 Provide a brief introductory paragraph before starting 1.1 onwards. In the
introduction, simply specify what would be the content of chapter 1. You can start
it by: “This chapter enumerates the name of the proponents, the name of the
company, ….”

1.1 Project Proponents

 Start this part by stating a short statement stating “The proponents of the
project are:”
Table 1. Project Proponents
Proponents Nationality Address

1.2 Proposed Company name

 In this part, identify the name of the company and explain the reason for
choosing the name. Discuss also why the business name identified captures
the totality of the proposed venture.
 Include also in this part the logo of the company. Explain the meaning and the
idea/concept behind the logo. Discuss also why it suits the proposed
business.
 In creating the company logo, you need to consider the font, font size, color,
design, etc. These factors can make or break your proposed business.
1.3 Company’s Vision, Mission, and Goals
 Create the Vision statement, mission statement, and goals of the business.
 The vision statement should concretely identify what the company wants to
achieve in the future. Always consider the SMART rule (Specific,
Measurable, Attainable, Realistic, Time-bound).
 The mission statement on one hand specifies the reason why your business
exists. It should be brief.
 The goals of the business should compose of Human Resource Goals,
Marketing goals, Production/Operations Goals, and Financial Goals.
 Goals specify the company’s desired result to a specific function.
 HR Goals specify what you want to achieve in terms of the company’s human
capital.
 Marketing Goals specify what you want to target in terms of marketing efforts
such as, sales target, market share, marketing campaigns, etc.
 Production/Operation Goals specify what the company wants to achieve in
terms of its production of goods/services and/or its everyday operations or
operation as a whole.
 Financial Goals specify what financial target you want to set for your
business such as ROI, ROE, ROA, etc.
 Remember, all goals should be backed up by objectives. Objectives are
specific in nature and they particularly stated.

1.4 Type of Business Organization

 In this part, simply choose what kind of business you are going to pursue
(Sole Proprietorship, Partnership, or Corporation). Explain the reason for
choosing the type of business organization and discuss why it is suitable to
the nature of your proposed project.
1.5 Legal Requirements
 For this part, create a flowchart/diagram showing the flow of securing legal
requirements for your proposed venture. This part may include the following:
o Security and Exchange Commission/DTI/Mayor’s Office Requirements
o Business Permit
o Registration at Bureau of Internal Revenue
o Registration at Food and Drug Administration
o Registration at the Department of Labor and Employment
o Other Business Requirements
 Label your diagrams/flowchart properly. Every diagram/flowchart, briefly state
the process of securing the legal requirement/s.

1.6 Products / Services

 Enumerate and discuss the product/s and/or service/s you are going to offer
to the market.
 Include sample products in this part using pictures.

1.7 Business Location

 State the location of the business.
 State reasons for the location your business in a particular area.
 Provide a map for your business.
 Chapter 2
Industry Description and the Strategic Position of the Business
 For introduction, discuss briefly the nature of your proposed project. Include in
the discussion the products/services the company will offer in the market.

2.1 Trends in the Market and the Industry Performance

 Discuss what are the trends happening in the market (based on your
product/service proposal). For instance, if your product is papaya wine, discuss
then the wine industry in the global marketplace and in the Philippines. Identify
also what are the varieties of wines presently offered in the market. Discuss also
the competitive advantage of your company to the existing firms.
 Ascertain and discuss the performance of the industry where your
product/service belongs. Look for quantitative data to support all information
you’re going to include in this part.
 Discuss the social/technological/economic/ecological/political/legal impact of your
product/service and your company.
 Identify the major players in the industry, their market share and their size
(profit/sales/revenue growth).
 Make sure to properly cite sources/references. Follow strictly the APA format

2.2 Competitive Position of the Business Venture

 Explain the importance of identifying threats and opportunities for the company.
 Scrutinize this part by identifying the forces affecting the profitability of the
industry. This will include (Incorporate the things you have learned from
STRATMAN and INTERMAN! Recall Porter’s Five Forces Model):
o Threats of New Entrants
o Threat of Substitutes
o Rivalry Among Existing Competition
o Bargaining Power of the Buyer
o Bargaining Power of the Supplier
  Create a diagram showing the competitive position of the company. A sample is
given below.

Figure ___. Competitive Position of ________(name of your company)_________

2.3. SWOT Analysis of the Business Venture

 Create a SWOT Analysis for the Business (apply the things you have learned
from STRATMAN!)
 Explain your SWOT analysis.
 A sample SWOT is given below.
Figure ___. Sustainable Niche of ________(name of your company)_________
 Chapter 3
Marketing Aspect
 Provide a brief introduction (1 paragraph) for this chapter.

3.1 Target Market

 Identify the target market or the fairly homogeneous group of people or
organizations to whom a company wishes to appeal (Go & Go, 2010). Describe
extensively the target market; their characteristics, behavior, etc. (Apply
Segmentation techniques we discuss in INTERMAN!)
 A specific way to identify the target market is to know the profile of the PTM –
primary target market who are the most logical buyers who should generate the
bulk of sales (Go & Go, 2010)
 Identify also the secondary target markets in order for you to know how you can
reach them through your marketing strategies.
3.2 Projected Demand
3.3 Projected Supply
3.4 Demand - Supply Gap Analysis
 Compute for the:
o Projected Demand – Projected Supply = Gap
3.5 Market Share and the Level of Competition
3.6 Marketing Strategies
 Product – Describe your product/service in detail. Provide pictures of
actual packaging, labels, brand name etc.
o Why do brands exist? (Go & Go, 2010)
 Identification
 Protection
 Positioning
o Criteria for Choosing a Brand Name (Go & Go, 2010):
 Distinctiveness
 Word Association
 Legal Requirements
  Memorability
 Pronunciability
 Limitations
o Brand Equity – net worth of a brand.
o Packaging – the silent “salesman” in the store
 Protection
 Display Value
 Cost
 Convenience
 Size
o Label Development (Go & Go, 2010)
 Initial Design
 Consumer Test
 Final Design
 Profiling
 Delivery and Quality Check
o Green Packaging
o Over Packaging
 Price. Identify specific pricing strategies; explain how it works and why it is
applicable to the offered product/service. What is you pricing objective/s?
What are the factors you considered in pricing? Why did you choose these
pricing strategies? (Apply all the things you have learned from
PRINMARK, MARKMAN, STRATMAN, ENTRMAN, INTERMAN).
 Place. (Distribution Channel). What is the channel of your distribution?
Direct? Indirect? Explain why you chose the distribution channel.
o Long Channel Length (Indirect)
o Short Channel Length (Direct)
 Promotion. What is your promotional mix? Describe and explain the
different promotional strategies you’re going to adopt. Provide actual
pictures! You need to come up with unique but doable promotional
strategies! Think out of the box concepts! Be creative!
3.7 Unique Selling Proposition.
 Identify also the USP (unique selling proposition of your product/service). Unique
selling proposition. How will create USP?
 Examples of USP:
o TOMS Shoes are quirky, comfy, light and inexpensive. That alone maybe
isn’t enough to make a company stand out in the shoe business. The most
unique and compelling part of the TOMS Shoes story is that they give a
new pair of shoes to a child in need for every pair you purchase.
o Jollibee’s Langhap Sarap
o Head & Shoulders: "You get rid of dandruff"
o Some unique propositions that were pioneers when they were introduced:
o Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30
minutes or less -- or it's free."
o FedEx: "When your package absolutely, positively has to get there
overnight"
o M&M's: "Melts in your mouth, not in your hand"
 Unique selling proposition is a description of the qualities that are unique to a
particular product or service and that differentiate it in a way which will make
customers purchase it rather than its rivals (the economist, 2009).

*** All the expenses/costs from this part should be accounted properly at the financial
aspect!
 Chapter 4
Organization and Management Aspect

 Provide a short introduction for this part.

4.1 Form of Business Organization

 Identify what form of business organization you are going to adopt for your
venture and explain the reasons for choosing so.
4.2 Business Structure and Culture
 Discuss and explain the business structure of your company.
 Discuss what kind of culture you’re going to establish in the venture. What kind of
decision making process are you going to utilize? Centralized? Decentralized?
Why?
4.3 Personnel / Manpower Requirements
 Identify the number of employees in your company.
 Enumerate the composition of your manpower.
4.4 Job Description and Specifications
 Discuss the importance of Job analysis, job description, and job specification.
 Provide a job title, job specifications, and job descriptions for each position.
4.5 Company Policies and Procedures
 Enumerate
o company policies and procedures
o Minor offenses
o Major offenses
o Penalties
4.6 Pre-employment Requirements
 Enumerate
o Pre-employment requirements
o Steps of Employment process (Recruitment and Selection Process)
o Orientation
 o Wages and Salaries (including the adjustments e.g. annual increase;
bases for wages and salaries; compensation packages)
o Security of Tenure (Based on Labor Code of the Philippines)
o Working Hours (Provide a Gantt Chart)
o Rest Days
o 13th Month Pay
o Holiday and Special Holiday Pay
o Overtime Pay
o Service Incentive Leave
o Maternity Leave Benefit
o Paternity Leave Benefit
o HR Appraisal Methods and Performance Management (how will you
appraise employees? What is the company’s performance management
system?
o HR Rewards and Pay Plans
o Proposed Employee Salary Packages
o Proposed Benefit Scheme
o Schedule of 13th Month Pay
o Schedules for Uniform Cost and other Costs Related to Employees
4.7 Project Timetable
 Enumerate/Illustrate timeframe for the project (from conceptualization to start of
operation).
 Discuss each part of the Gantt Chart
 Chapter 5
Production and Technical Aspect

 Provide a short introduction for this part.

5.1 Product / Service Description

 Write down the description of the company’s product/s and/or service/s. (1 page
will be okay)
5.2 Production Process
 Enumerate and provide detailed description of each process.
 Provide a diagram / flow chart of the production process
 Provide a table for machineries/equipment used and their capacities
 Provide the projected annual plant capacity (project for 5 years)
5.3 Project Site
 Mention the site of your project and discuss extensively why it is suitable project
site.
 Provide a photo of the actual project site (provide a map if necessary)
 Provide a table for the cost or acquisition /rent
5.4 Site Plan
 Describe the site plan. What would be the layout / design of your site plan?
5.5 Floor Plan
 Enumerate and provide description of every layout / facility you will have in your
site.
 Provide a floor plan – for the building, production plant etc. , vicinity map, project
site plan.
5.6 Machineries and Equipment
 Enumerate and provide a table of all the machineries and equipment that will be
used in the business.
 Provide a description per machinery/equipment, its source/s, unit cost, capacity,
quantity, and total amount.
 Provide photos for the machineries and equipment
  Make a table for all the office supplies, tools, equipment that will be used in the
venture.
 Make a table for furniture and fixtures, their description, source/s, quantity, unit
cost, and total cost.
 Make a table for other equipment such as air con, fire extinguishers etc., their
descriptions, source/s, quantity, unit cost, and total cost.
 Make a table for installation cost of electricity, telephone, wifi, etc.
 Make a table for direct materials requirements (raw materials), descriptions,
source/s, unit cost, quantity, cost, monthly cost.
 Make a table for projection of raw materials requirements for 5 years
 Make a table for projection for packaging requirements for 5 years
 Make a table for projection for total direct materials requirement in 5 years.
5.7 Company’s Standard Operating Procedures
 Provide detailed SOPs for all the production, operation, training etc. of the
business.
5.8 Waste Disposal Management
 Discuss the waste disposal management of the business. Include a diagram.
 Chapter 6
Corporate Social Responsibility (CSR) Initiatives

Provide a short introduction for this part.

6.1 Statement of Purpose

6.1.1 Social (People)
 Discuss the different social targets of the company. Explain in detail each
target identified.
6.1.2 Environmental (Planet)
 Discuss the different environmental targets of the company. Explain in
detail each target identified.
6.1.3 Economic (Profit)
 Discuss the different economic targets of the company. Explain in detail
each target identified.

6.2 CSR Programs

CSR Program:
Beneficiary:
Timeframe:
Budget:
Who Will Who Will How Often is
Issues/Concerns Activities
Implement Review the Review
Unemployment in *Perform needs General General Quarterly
Brgy. AUF assessment of the Manager Manager
identified beneficiary.
* Meet the target
beneficiary one week
before the day of the
activity.
 *Establish partnership
with Go-Negosyo and
DTI Region 3 for
Entrepreneurship
Seminar.
*Assess the initial
impact activity.
*Provide the initial
capital for the
beneficiary.
*Provide financial
literacy and basic
bookkeeping seminar
to identified
beneficiary.
Expected Impact:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

6.3 CSR Programs Timetable

 Create a Gantt Chart showing the timetable of your company’s CSR
programs.
 Provide a short description of your Gantt Chart
6.4 Sustainable Impact to the Community
 In general, discuss the sustainability of your company CSR Initiatives.
Relate your discussion with the triple bottom line (3Ps).
 Chapter 7
Financial Aspect
 Provide a short introduction for this part.

6.1 Financial Assumptions

 Enumerate all your financial assumptions (E.g. projected capitalization,

expenditures, working capital etc.)
 Enumerate your sales budget assumptions
 Enumerate your production budget assumptions
 Enumerate your purchases budget
 Enumerate your direct labor budget
 Enumerate factory overhead budget
 Provide a table for all the property and useful life
 Enumerate your selling and administrative budget

6.2 Financial Schedules

 Provide a schedule/table for:

o Project Cost
o Computation for Depreciation
o Organizational Cost
o Working Capital
o Professional Retainer’s Fee
o Fire Insurance Expense
o Payment of Utilities
o Payment of Income Tax
o Labor Cost
o Direct Materials Requirements in 5 years
o Raw Materials Payment
o Factory Overhead
o Cost of Good Sold
o Trade and Other payables
o Inventories
o Income Statement
o Statement of Cash Flow
o Statement of Financial Position
o Payback Period
o Financial Highlights: Financial Conditions and Results of Operations
 o Financial Ratios
 Liquidity
 Current Ratio
 Profitability
 ROI
 Return on Sales
 Earnings per share (if applicable)
 Asset turnover
 Invested capital turnover
 Debt/Equity Ratio

*** If the venture is sole proprietorship or partnership the following should be taken into
account:

1. Balance Sheet
a. Do not have share capital and dividends
b. Each partner should have capital account e.g. ABC partnership
i. A Capital
ii. B Capital
iii. C Capital
c. For distribution of profits, they can do it through withdrawal or direct
deduction on capital account
2. Cash Flow
a. No dividend distribution outflow only withdrawal
 Chapter 7
Socio-Economic Aspect
 Provide a short introduction for this part.

 Enumerate all the beneficiaries of the venture and discuss why they will benefit
from the business.
 Discuss extensively your CSR programs. Mention the purpose and goal/s of each
program/s, the target beneficiaries, and its sustainability. Be sure to put all the
costs/expenses of your CSR programs in chapter 6 – financial aspect.
 After doing your chapter 7, references will follow. Cite all your references in APA
style.
 After References, all the appendices will be included.