BUSINESS PLAN

Arancia Appetito: Swift Delight

Commented [WU1]: EVERYBODY SHOULD FOLLOW THE

SUGGESTIONS FOUND IN THE COMMENT SECTION
ONLY THE SECTION ASSIGNED TO YOU SHOULD HAVE TRACKED
CHANGES.

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EXECUTIVE SUMMARY

Arancia Appetito is a new business that offers an innovative paste-like food, the Swift

Delight, to the people of Dumaguete City. A unique food that will surely appeal to the food-loving

people of the city, Swift Delight will offer the customers a delicious food that is not only pleasing

to the eye, but also to the stomach and the pocket. It especially suits those who wish to eat

conveniently, or on the go. Operating 8 hours a day at City Mall, the Swift Delight can offer its

product to a lot of people, regardless of age, gender and income.

The business's contribution to the economy is to generate employment However, not

until the owners chose to expand as this business will be run by the owners in the beginning. It

will only start generating employment as soon as they expand their operations and need more

manpower. As a starting local business, the operation will also help prevent the stagnation of

resources in the local area. The raw materials needed for the production of the Swift Delight will

come from the local supplies. Thus, creating a continuous flow of resources from suppliers to

consumers.

Considering the production and labor capacities, the business's projected sales for its

first month of operation is Php18,000.00. This figure is a safe assumption that takes into

consideration the business cycle, which presents the possibility of fluctuation in sales, especially

in its first month of operation.

Vision

To be a leading food business in the country that provides innovative and healthy

products to customers.

Mission

To continually produce and innovate vegetables to goods that are authentic and safe for

consumption of the public.

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Goals and objectives:

Short term goals:

 To procure the satisfaction of the customers within the allotted time

 To obtain more revenue than the operating expenses

 To engage more customers

 To develop a preferable customer service strategy

Long term goals

 To acquire a majority positive customer feedback form the service we provide

 To expand brand recognition

 To gain bigger number of customer’s loyalty

Objectives:

 To be able to apply the things we learned in entrepreneurship in the real business world

 To be able to garner new experiences in handling a business

MARKETING PLAN Commented [WU2]: BENSON: CENTER

Description of the Product

Swift delight is a sweet and delightful treat made by the entrepreneurs of Arancia Appetito.

It is a food paste that is made from the mixture of squash and taro vegetables and flavored with

pandan leaves. Swift delight is perfect for people of all ages. It is sweet, which makes it perfect

for children, at the same time it is healthy, which makes it perfect for health conscious people

and vegetarians. The customers can enjoy it in different ways. It can be used as a sandwich

spread, biscuit filling, a dip for chips or they can simply consume it alone. Commented [WU3]: BENSON: JUSTIFY ALIGNMENT

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Comparison of the Product with its Competitors

Swift Delight is a food paste, a satisfying food companion during family bonding, friends

outing, school and office works and many more. That is why it has a profitable place in the

market which also means having a lot of competitors. Even though there is no such food

business selling the same product but still there are a lot of competitors in terms of the type of

food.

Kroskat composed a lot of food stalls offering a different kind of snack type foods. Being

around Silliman University, it will be a threat to the Arancia Appetito. The Arancia Appetito also

offers a dessert but with a unique idea making it more ahead from the ordinary snacks. It can be

bought in much cheaper price and can be sold or served in hot and cold- the thing you will be

surprised.

Another close competitor of Arancia Appetito is the numerous Kiosk Stalls. It will be a

strong competitor of Arancia Appetito since it already marked a household name and also has

an advantage in customer’s preference since these stalls are located inside the campus.

Therefore, the company will try to counter this by employing strong marketing strategies. Commented [WU4]: TOLOMIA: JUSTIFY ALIGNMENT

Strengths:

• The product is unique.

•The product is new.

•The price is cheaper.

• Serving strategy is new.

• Unity among members.

Weaknesses:

• The product is new in the market.

• The business is a new entrant is the food industry.

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 • Preparing the food is time-consuming.

Opportunities:

• Celebration of Hibalag

• New generations of consumer will be curious to our new product.

• A numerous number of students in Silliman University

• Social media

Threats:

• Lots of kiosks competitors at school

• Numerous food stalls in Lee Plaza

• Lack of finances

• Price changes of the ingredients

• Tools and utensils to use in preparing the food is not convenient

Commented [WU5]: DAGOY: CONVERT TO TABLE WITH

CAPTION

Location

Swift delight will be sold around the portals of City Mall located at First St.,Dumaguete City,

Negros Oriental. This location is advantageous for us sellers for it is a place where many people

visit for personal purposes, just like shopping, having meal outs’, and some who just simply go

there to chill and hangout with friends and family. Commented [WU6]: BANAYBANAY: JUSTIFY ALIGNMENT

Market Area

The whole area of Dumaguete City will be covered by the project. The product will be sold

in City Mall Dumaguete. Since the new mall is near the road so it will be very easy to attract

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customers and consider visiting the area because of curiosity. People usually go to malls to

shop, eat and dine. Others who happened to pass by will be fascinated of what kind of products

is newly displayed so they will come and buy. If people will make the setting a talk in town then

it can further extend the market area globally. Commented [WU7]: BANAYBANAY: JUSTIFY ALIGNMENT

Main Customers

The primary target of the company is students of Silliman University and working adults.

This is due to the majority of people near the location where the stall is situated. Moreover, we

will also be marketing our products to the people of Dumaguete City to gain more profit. Price

will not be too much for the customers since the product can be bought at an affordable price.

The working adults will also avail of the product since it is convenient to eat and carry around,

especially if they are in a hurry. Prices will also not be an issue to them since they are earning

their own income. Commented [WU8]: CADIENTE: JUSTIFY ALIGNMENT

Selling Price

Swift Delight alone will be sold at Php 12.00 per set while the drinks will be sold at Php 5.00

each. The Swift Delight Combo, which comes with juice will cost Php 15.00. The customers can

choose the combination of flavor they wish to have. Commented [WU9]: CADIENTE: JUSTIFY ALIGNMENT

Sales Forecast

Arancia Appetito is expecting to sell a total of 50 sets of Swift Delight in a day, which is

equivalent to Php 600.00 in daily sales. A total projected monthly sale is Php 1,500.00 sets,

which is equivalent to Php 18,000. This sales projection does not include the sales from the

drink. Commented [WU10]: VISTA: JUSTIFY ALIGNMENT

Promotional Measures

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 The business will promote the Swift delight through print advertising, social media, and

composing a jingle. For print advertising, posters will be placed in strategic locations. Flyers will

also be produced to be given out to the public. The business will also maximize the scope through

social media, so the product will be promoted on Facebook, Twitter, and Instagram among others.

Customers will be encouraged to take pictures of the product and upload their photos using the

hashtag #SwiftDelight. Finally, a “catchy jingle” will be composed for people to be acquainted with

and remember the product. Commented [WU11]: VISTA: JUSTIFY ALIGNMENT

Marketing Strategy

The marketing strategy of the company is the user generated content for it defined broadly

as media created by the users of a product or service. The company will also ask their

customers to advertise their product in order to attract more customers.

For the product promotion, the company will use the tagline: “Make sweet blend with Swift

delight.” Commented [WU12]: BENSON: JUSTIFY ALIGNMENT

Marketing Budget

The company's marketing budget will not exceed Php 500 as the expenses will only

incurred from printing flyers and posters. Other forms of advertisement will not cost the

company. Commented [WU13]: TOLOMIA: JUSTIFY ALIGNMENT

PRODUCTION PLAN Commented [WU14]: DAGOY: CENTER

Production Process

STEPS IN PREPARING SWIFT DELIGHT:

1. Prepare the ingredients needed.

2. Get rid of the unnecessary parts of the squash, the seeds and the fibrous strands.

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 3. Wash the squash.

4. Peel the taro.

5. Steam the two together in a steamer until they are soft.

6. Mash the squash and the taro using a fork or you may grate it using a grater until it is

paste-like.

7. Combine all the ingredients in a bowl.

8. Transfer it to a casserole and put in the stove with low-heat.

9. Keep on stirring until desired thickness is achieved.

10. Serve it in a nice container. (May be topped up with peanuts if desired by consumer) Commented [WU15]: BANAYBANAY: USE FLOWCHART

Equipment and Costs

Some equipment uses in the production are rented and purchased, hence the minimal
cost.

ASSET

QUANTITY

COST

STALL

150

COOLER

100

TABLE

8
 2

3000

DISPENSER

400

WATER GALLON

60 Commented [WU16]: CADIENTE: CONVERT TO TABLE WITH

CAPTION

TOTAL COST Commented [WU17]: VISTA: ADD NEW ROW IN THE TABLE
PLACE TOTAL COST IN THE NEW ROW
Sources of Equipment

The owners of the business borrowed all the equipment used in making the product from

their families.

Maintenance and Repairs

To prolong the life of the equipment, they will be subject to regular, mandatory check-

ups by the manager, preferably before and after business hours. Any equipment in need of

repairs will be given attention immediately to avoid negative effects on the product. They will not

be used beyond their capacity to maintain the quality of the product. Utensils will be washed

thoroughly and kept in a clean storage area.

Factory Location and Layout

The factory Arancia Appetito of will be located at Villaluz Village, Sibulan, Negros

Oriental.

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Raw Materials and their Costs

Raw materials needed for the production are as follows: squash, pandan leaves, taro,

condensed milk, anchor butter, evaporada cream, and refined sugar.

Raw Materials Availability

Raw materials are readily available. The squash, taro, pandan leaves, condensed milk,

anchor butter, evaporada cream, and refined sugar will be purchased in the market.

Labour

For the duration of the operation, direct and indirect labor will be performed by the

entrepreneurs themselves.

Cost of Labour

Since the entrepreneurs will be personally doing the labor, there will be no cost for

labour.

Labour Availability

Labour will be available throughout the entire operation of the business.

Labour Productivity

The workers will be motivated by the prospect of profit at the end of the operation period.

Factory Overhead Expenses

Factory overhead expenses include the indirect cost for production and transportation

expenses.

Production Cost

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 Ingredients

Quantity used

Cost

Squash

500 grams

Php 10

Pandan leaves

2 pcs

Taro

500 grams

20

Condensed Milk

306 grams

22.36

Anchor Butter

227 grams

104

Refined Sugar

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 225 grams

9.69

Evaporada Cream

240 mL

15.17

Total Cost

186.22

Number of Units

100

Cost per unit

1.8622 Commented [WU18]: BENSON: CONVERT TO TABLE WITH

CAPTION

Cups cost Php 1.4. Packaging costs Php 2.4 per set.

Swift delight supreme unit cost

(1.8622 + 1.4) Php 3.26

Total Swift delight Cost Per Set

(3.26 * 2.4) Php 7.82

The following contain tables that show the projected monthly costs

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 Ingredients

Quantity Used Daily

Daily Cost

Amount Used Monthly

Monthly Cost

Squash

500 grams

Php 10

15,000 grams

Php 300.00

Pandan leaves

2 pcs

60 pcs

150.00

Taro

500 grams

20

15,000 grams

600.00

Condensed Milk

306 grams

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 22.36

9,180 grams

670. 8

Anchor Butter

227 grams

104

6, 810 grams

3,120.00

Refined Sugar

225 grams

9.69

6,750 grams

290.7

Evaporada Cream

240 mL

15.17

7,200 mL

455.10

Total: Php 186.22 Commented [WU19]: TOLOMIA: ADD NEW ROW

PLACE TOTAL IN THE NEW ROW

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ORGANIZATIONAL AND MANAGEMENT PLAN

Forms of Business

Arancia Appetito is a partnership formed by eleven (11) entrepreneurs namely, Ms.

Danielle Apao, Ms. Ara Benson, Ms. Apple Campoy, Mr. Mark Lomotos, Ms. Fritzyl Lorico, Ms.

Nicha Paladin, Ms. Kassey Pamaran, Ms. Jollie Ann Pantullana, Ms. Anne Salcedo, Ms. Recca

So and Ms. Sofia Villaluz. These entrepreneurs will use their combined skills, talents,

experience and knowledge in order to achieve the business’ goals and objectives. Arancia

Appetito is aims to make difference in the food industry by creating and providing an innovated

product out of the society's preferences.

Organizational Structure

Swift Delight will use the following organizational structure for their business.

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 Commented [WU20]: DAGOY: ADD NAME OF MEMBER IN
EACH POSITION
Ara Joyce
Benson

Anya Vienne Kylle Benz Claire

Tolomia Dagoy Banaybanay

Reynette
Kylle Dean Vista
Cadiente

How will the business be managed and operated?

Arancia Appetito will be managed and operated according to the entrepreneur’s time table

and the policies of City Mall. Before the mall opens, the entrepreneurs should have already

prepared the essentials for the operation during that day. The business’ production manager will

be in charge in maintaining the popularity of the product. He/She will make sure that all the

necessary tools and ingredients would be ready. Once the product is delivered to the mall, the

general manager will take control of the operations.

The assigned employees are as follows: The cashier will manage the finances until the

end of his/her shift and will be assisted by the company’s bookkeeper. The bookkeeper will be

the one to calculate their end of the day sales, and will be in charge of keeping track of the sales

and records of all financial transactions. For the product to be more recognized, the marketing

manager will be in charge of promoting the product. In order to come up with good marketing

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strategies, the existence of a marketing manager would be of great advantage to the recognition

of the product, as the marketing team will strive to formulate as many marketing strategies as

possible.

After a whole day of operating the business, each station will report to the general manager

their progress so that he/she can evaluate the team’s advancement. The bookkeeper will report

their sales to the financial manager for him/her to keep track of the financial position of the

business. As soon as the general manager rechecks the computation of the sales and approves

it, he/she shall for a meeting with the employees. The marketing team will report feedback from

the public to the marketing manager for him to know what they think about the product. The cook

will report the quantity of units produced during that particular day to the production manager. The

purchaser will report the list of ingredients that were purchased on that day to the kitchen

manager, and will keep track of the variation of market prices. The overall operation in the kitchen will

be handled by the production manager.

Job Analysis

GENERAL MANAGER (Miss Ara Joyce Benson)

a. Job Description

 Develops strategies and policies to achieve company’s future goals.

 Develops weekly operating budget as well as all project budgets and oversees them.

 Manage staff, preparing work schedules and assigning specific duties.

 Monitors and reviews the business’ progress.

 Enforces ethical business practices.

 Establishes plans, budgets and results measurements.

 Makes sure that all business operations are running smoothly.

Commented [WU21]: BANAYBANAY: CHANGE TO A DIFFERENT
 Oversee activities directly related to making products or providing services. BULLET

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 b. Job Specifications

 Must be at least 16 years old.

 A strategic thinker.

 Has the ability to manage and develop staff creating good teamwork.

 Has a strong interpersonal skill.

 Should know how to monitor and manage financial system and processes.

 Should have the strength to achieve the target and goals of the company.

 Enthusiastic leader with conduct and credibility. Commented [WU22]: CADIENTE: CHANGE TO A DIFFERENT
BULLET

PROMOTIONAL & MARKETING MANAGER (Miss Anya Vienne Tolomia)

a. Job Description

 Plan and direct advertising policies and programs

 Negotiate advertising contracts

 understand customer and market opportunities for businesses

 Plan advertising and promotional campaigns

 Develop pricing strategies or services marketed to the target customers

 Direct the hiring of advertising, promotions, and marketing staff

 Interface with clients to provide technical or marketing advice

b. Job specification

 Must have prior experience in supervising and managing

 Must be knowledgeable in supervising and managing a professional marketing staff of

seven.

 Has a Bachelor's Degree in Marketing or a related field required.

 Master’s in Business or Marketing preferred.

 Strong effective communicator.

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  Highly developed, demonstrated teamwork skills.

 Ability to coordinate the efforts of a large team of diverse creative employees.

FINANCIAL MANAGER (Mr. Kylle Benz Dagoy)

a. Job Description:

 Provides financial reports to the business.

 Provides financial advices to the business, prior in decision-making.

 Takes charge for budget planning.

 Reviews and evaluates the cost-reduction opportunities.

 Ensures that the business has sufficient funds to continue with its daily operations.

b. Job Specification:

 Must be at least 18 years of age.

 Has prior business knowledge mainly on Accounting.

 Has prior knowledge of financial regulations and reporting requirements.

 Good communication skills.

BOOKKEEPER (Miss Reynette Cadiente)

a. Job Description:

 Records and keeps track of all financial transactions of the business.

 Keeps hold of all the receipts.

 Takes charge in making, calculating, issuing and analyzing the financial statements.

 Takes charge in adjusting entries in the journal.

 Keep track of all sales of the business.

 Maintains a budget for the business.

 Reports to the financial manager.

b. Job Specification:

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  Must be at least 18 years of age.

 Has prior knowledge on basic Microsoft programs.

 Has prior business knowledge specifically on financial statements and bookkeeping.

 Responsible

 Reliable

PRODUCTION MANAGER (Miss Claire Banaybanay)

a. Job description

 evaluate the project and resource requirements

 supervise and motivate a team of workers

 estimate, negotiates and agrees on budgets and timescales with the clients and

managers

 determine the quality control standards

 plan and organize the production schedules

 select, order and purchase materials

 organize the repair and routine maintenance of production equipment

 cooperate with the buyers, marketing and sales staff

 organize relevant training sessions

 ensure that health and safety are met

b. Job specification

 has a project management skills Commented [WU23]: VISTA: WRONG GRAMMAR

 must be excellent in communication and presentation skills

 must have an undergraduate or postgraduate degree in a relevant subject that is related

to production management

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  has prior knowledge or work experience that is relevant with manufacturing systems and

production techniques

PURCHASER (Mr. Kyle Dean Vista)

a. Job Description

 Control purchasing department budgets.

 Maintain records of goods ordered and received.

 Ensure to have all main ingredients.

 Chooses the suppliers and t6he products that the company has to use.

 Monitors the materials of the company.

 Analyze market and delivery systems in order to assess present and future material

availability.

b. Job Specifications

 Must be at least 16 years old.

 Honest and responsible.

 Should be attentive and alert.

 Good working knowledge

 Negotiation skills.

 Analytical skills.

 Knows basic mathematics.

Working Hours and Potential Schedule

Since our business will be located at City Mall, First St.,Dumaguete City, Negros

Oriental, we will be rendering a total of 12 working hours each day for the bookkeeper, cashier,

and cooks and 8 hours for the General Manager, Marketing Manager, Financial Manager and

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Production Manager that starts from 8:30 in the morning up to 8:30 in the evening. Also, we will

be open every day to serve our customers with full satisfaction. Commented [WU24]: VISTA: JUSTIFY

Pre-Operating Activities

Pre-operating activities contains conceptualization of the product, products progress

creation of the business plan.

Pre-Operating Expenses

All pre-operating expenses were incurred from the product development. Expenses for

all trials totaled Php 749.

FINANCIAL PLAN

Projected Cost

The owners will contribute equal amounts of P50, 000 each to finance the start-up
capital of P300, 000.00. Only ¼ of the Production and Packaging costs will be needed for start-
up.

Cost of equipment Php 3,710.00

Production Cost

Swift Delight Php 186.22

Packaging Cost Php 240.00

Initial Investment Php 4,136.22 Commented [WU25]: BENSON: CONVERT TO TABLE WITH
CAPTION
Selling Expense

Selling expense is of the cost of packaging. Cost of packaging for each set is Php 2.4.
Taking into account the projected daily sales which is 100 sales, daily packaging cost would be
Php 240 or Php 7,200 per month.

4.3 Income Statement

Arancia Appetito

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 Income Statement

For the First Operating Month

Sales Php 18,000.00

Less: Cost of Goods Sold Php 5,586.60

Gross Profit Php 12,413.40

Less: Selling Expense Php 240.00

Fixed Cost Php 1,000.00

Net income Php 11,173.40 Commented [WU26]: TOLOMIA: CONVERT TO TABLE WITH
CAPTION

Cash Flow Statement

Arancia Appetito

Cash Flow Statement

For the First Operating Month

Cash Sales Php 18,000.00

Less: Purchases Php 5,586.60

Selling and Administrative Expenses Php 240.00

Fixed Cost Php 1,000

Ending Cash Balance Php 11,173.40 Commented [WU27]: DAGOY: CONVERT TO TABLE WITH
CAPTION
Balance Sheet

Arancia Appetito

Balance Sheet

For the First Operating Month

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Assets:

Cash Php 11,173.40

Equipment Php 3,710.00

Inventories Php 5,586.60

Total Assets Php 20,470.00

Liabilities ------

Owner’s Equity Php 20,470.00

Total Liabilities and Owner’s Equity Php 20,470.00 Commented [WU28]: BANAYBANAY: CONVERT TO TABLE WITH
CAPTION

Break-even Point

Break-even Point = Fixed Cost / Contribution Margin

Contribution Margin = Price – Variable Cost

Fixed Cost Php 1,000.00

Price (excluding packaging) Php 9.60

Swift Delight Variable Cost Php 5.59

Contribution Margin (Php 9.60- Php 5.59) Php 4.01

Break-even Point 249 units Commented [WU29]: CADIENTE: CONVERT TO TABLE WITH
CAPTION
Return on Investment

Merchandise Inventory Php 5,586.60

Equipment Php 3,710.00

Operating Investments Php 1,000.00

Total Investments Php 10,296.60

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Net income Php 11,173.40

Return on Investment 108.52%

(Net income / Estimated Investment)

Commented [WU30]: VISTA: CONVERT TO TABLE WITH

CAPTION

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