Chapter lV

MANAGEMENT STUDY

This section presents the organizational structure, manpower requirements, and

compensations scheme to be adopted in the operation of the proposed Chocolate Project

Organizational Structure

Sweet Fudge Shop organizational chart shows the individual employees that make up

the shop staff, along with partnership in this shop. An organizational chart is an effective

ways to show who is responsible for what functions and areas in a business enterprise.

Organizational Chart
OWNER

MANAGER

FINANCE OPERATING
TEAM

Cashier Baker/Cook

Waiter/Waitresss
 Job Desription and Qualifications

Manager
 Responsible for day to day operation.
 Work with management personnel to set targets and incentives to increase
turnover and profitability of establishments.
 To plan, organize, lead and control all the activities, menu’s and services of the
food and drinks department/ outlet on a cost-effective methods and to the
optimal satisfaction its external and internal customers.
Assist in the planning for future development of facilities and services.
Marketing Team

Staff

 Provide individual support and development.

 Create a marketing proposal for increase of sales.

 Present market analysis and market plan.

Finance/ Accounting
Accountant
 Primary responsibility is to prepare financial statements and supporting
schedules according to monthly close schedule.
 Analyze revenues, commissions and expenses to ensure they are recorded
appropriate monthly basis.
 Assist with preparing tax returns and cooperate reporting requirements.
 Assist with quarterly producer commission reports; analyzing and correcting
discrepancies.
Cashier
 Proven working experience in retail cashier or sales.

 Basic PC knowledge and familiarly with electronic equipment (e.g cash register,
scanners, money counters etc.)
  Handle cash transactions with customers using cash registers.

 Issue receipts, refunds, change and tickets.

 Resolve customer complaints, guide them and provide relevant information.

Operating Team

Baker/Cook

 Follow existing recipes.

 Clean and maintain baking equipment, utensils and tools.

 Ensure food surfaces and baking equipment meet all health and safety standards.

 Previous experience as a cook, baker assistant, cook, chef, or relevant work

experience.

 Able to work early morning, nights and weekends.

 Evaluate ingredients and food quality.

 Monitor item during baking.

Waiters/Waitress
 Providing excellent wait service to ensure satisfaction.

 Taking customer orders and delivering food and beverages.

 Making menu recommendations, answering questions and sharing additional

information with the shop patrons.

 Check dishes and kitchenware for cleanliness and presentation and report any
problems
 Compensation Scheme
The manager will receive a starting salary of ₱10,000.00 per month.And a cashier
get ₱7,000 salary monthly. For the Operating team, the Baker/cook should be receiving
₱5,000, and the waiter/ waitress will get ₱5,000 monthly.

Fringe benefits such as SSS,Phil Health, and Pagibig will also be given to the
personnel. It is assumed that salaries will increase at a rate of 3% per annually and 2% for
the fringe benefits.

Organizational Policies:
Policies to be adopted in the proposed project will be as follows.
*Cleanliness should be strictly observed within the vicinity of the proposed established.

*All employees are required to be always punctual in attending to their daily tasks.

*Habitual absences will to be a ground for termination of the employee’s services.

*All employees, particularly the waitress/waiter should be neat and dress in a presentable
manner.

*Courtesy to consumers should be observed at all times.

 CHAPTER V

FINANCIAL STUDY

This chapter discusses the financial aspects of the study, cost of operation, total

project cost, income statement and the balance sheet of the proposed product, to determine

whether the future industry will remain profitable through the existence of competitors and

unfavourable economic condition.

Projected Project Cost

 Fixed Assets

Kitchen Equipment and Materials ₱118,000.00

Sub-total Fixed Assets ₱993,000.00

 Working Capital

Direct Cost ₱72,000.00

Direct Labor ₱120,000.00

Direct Materials ₱110,000.00

Overhead Cost -- --

Other Expenses:

Marketing ₱150,000.00

Gen. & Admin. Expenses ₱50,000.00

Production Expenses ₱4,000.00

Sub-total Working Capital ₱434,000.00

  Pre-Operating Expenses

Preparation ₱4,000.00

Licenses & Registration ₱3,000.00

Sub-total Pre-Operating Expense ₱7,000.00

TOTAL PROJECT COST ₱1,072,000.00

Capitalization

Given a projected initial capitalization of ₱5,000,000 for the proposed sweet

fudge shop, contributing by the owner and the manger ₱2,500,000 and seeking ₱

1,500,000 small business loans will be used for start-up costs and at an interest rate of 15%

per annum will be paid back within (5) five years and ₱1,000,000 will come from the

savings of the manage/owner.

Below is the amortization schedule for five years of the proposed shop:

Year Interest 15% Principal Balance

2018 ₱225,000.00 ₱300,000.00 ₱1,500,000.00

2019 ₱180,000.00 ₱300,000.00 ₱1,200,000.00

2020 ₱135,000.00 ₱300,000.00 ₱900,000.00

2021 ₱90,000.00 ₱300,000.00 ₱600,000.00

2022 ₱45,000.00 ₱300,000.00 ₱300,000

Note: Balance x Interest(15%) = Answer

Balance 5 years = Principal
Financial Statements

Assumptions

1.Total projected cost amount to ₱1,072,000.00

2. Portion of the initial capital requirement amounting of ₱4,000,000 will come

from the manager and owner contribution, and business loaned from the bank at an

interest rate of 15% per annum will be pay back in five (5) years.

3. It is projected that salaries will increase at a rate of 3% per annum.

4.Operating expenses will increase at a rate of 3% annually.

Financial Analysis

According to the conducted financial analysis, it is determining whether this

proposed shop will remain profitable through the existence of competitors. Below shows

an acceptable rate of return for the first five years of operation.

Rate of
return on
2018 2019 2020 2021 2022
Sales

Net Income 234,248.84 290,856.32 342,707.11 364,903.34 2,300,966.86

Sales 2,013,066 2,045,643.94 2,064,678 2,149,092 2,192,022

12% 14% 17% 17% 105%

In addition, the table below it shown the proposed project that will able to meet its
obligations
Current Ratio 2018 2019 2020 2021 2022
Current Asset 2,359,307.35 4,759,208.3 5,193,759.29 3,726,281.86 6,316,817.50

Current 225,000 118,000 135,000 90,000 45,000

Liabilities

19.37% 26.44% 38.47% 63.63% 140.37%

 Chapter VI

Socio-Economic Study

The proposed product will contribute socially and economically to the province

of Aurora, specifically to the municipality of Maria Aurora by:

1.Providing a new product in Maria Aurora where we introduce the sweet dessert

will be offered at affordable prizes.

2.Offering the different variety of fudge to the needs of the community of Maria

Aurora if they want to taste sweet, especially if there’s an occasion.

3.Creating employment opportunities where require man power that are needed to

operate the proposed project.

4.It can be additional income to the municipality of Maria Aurora in terms of

taxes and it can be attracted to the tourist who come to our town.

Appendix: Depreciation Schedule

Fixed Asset Cost Scrap Life Depreciation

Value span Allowance

Building 250,000 35,000 5 7,160.00

Kitchen Equipment 118,000 11,000 5 7,160.00

&materials

Furniture &Fixture 125,000 12,000 5 7,160.00

Total 21,480.00
 KATRINA CAMILLE ANGELES CARPIO

Purok 2, Barangay 4
Maria Aurora, Aurora
09564828344
Katrinacamillecarpio16@gmail.com

PERSONAL INFORMATION

Nickname: Kaysie/K.C.
Birthday: March 16 2001
Birthplace: Brgy. 2 MariA,Aurora,Aurora
Age: 18
Nationality: Filipino
Religion: Methodist
Civil Status: In a relatioship
Father’s Name: Mr. Orlando G. Carpio
Mother’s Name: Mrs. Mary Jane A. Carpio

EDUCATIONAL BACKGROUND

ELEMENTARY: Wesley Kiddie Development Center

Barangay 02, Maria Aurora, Aurora
2004-2014

JUNIOR HS: Mount Carmel School of Maria Aurora

Barangay 02, Maria Aurora, Aurora
2015-2018

SENIOR HS: Mount Carmel School of Maria Aurora

Barangay 02, Maria Aurora, Aurora
2019-2020
 LAIGHTON RAINARD APILADO AZARCON

Barangay Florida
Maria Aurora, Aurora
09218889161
Laightonazarcon@yahoo.com

PERSONAL INFORMATION

Nickname: Entong
Birthday: June 22 2002
Birthplace: Barangay Florida,Maria Aurora, Aurora
Age: 17
Nationality: Filipino
Religion: Roman Catholic
Civil Status: In a relatioship
Father’s Name: Mr.Bernard D. Azarcon
Mother’s Name: Mrs. Rachel A. Azarcon

EDUCATIONAL BACKGROUND

ELEMENTARY: Dimanpudso Elementary School

Barangay Cabituculan, Maria Aurora, Aurora
2005-2014

JUNIOR HS: Mount Carmel School of Maria Aurora

Barangay 02, Maria Aurora, Aurora
2015-2018

SENIOR HS: Mount Carmel School of Maria Aurora

Barangay 02, Maria Aurora, Aurora
2019-2020