Business Plan

NUTRICH

San Beda College Manila, 6463249

Owners:

General Manager: Kevin Nambio

Marketing Manager: JardinePanado

Operations Manager: Clarence Lasam

Human Resource Manager: Paolo De Silva

Financial Manager: Carlo Oro

Prepared on: November 2013

Name of Preparers:

Kevin Nambio

JardinePanado

Clarence Lasam

Paolo De Silva

Carlo Oro

Number of copies: 6

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SECTION 1

Executive Summary

1.1 Company Profile

Nutrich is a start-up sandwich selling company. Nutrich expects to catch the

interest of a regular loyal customer base on health and diet consciousness as well. The

company plans to build a strong market position in the school, due to increase of

students who become conscious of their diet.

Nutrich aims to offer its products at the lowest price possible depending on the

cost of the products to meet the demand of the middle-to higher-class.

It is located in San Beda College Manila. The place was chosen based on the

possible target market and there are currently little competitors. This location is within

school premises. It is a good place for such business.

The business is composed of five fourth year Legal Management students of San

Beda College. The partners chose a healthy sandwich as their products since health is

the new trendamong college students nowadays, different pastries are in demand. Since

the partners have connections with chefs, suppliers and nutrionist they are interested,

and willing to work for such.

1.2 Nature of the product

Nutrich offers a choice of ready-made or customized nutritious sandwich wherein

ingredients will be always freshly bought from the market. Nutrich caters to all of its

customers by providing each customer a sandwich made to suit the customer apetite,

down to the smallest detail. It would provide quality sandwiches with quality taste.

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“Demand for baked and pastry goods is being driven by changing lifestyles,

which leaves little time to prepare meals. Busy consumers are increasingly quick to buy

convenient baked snack foods such as wraps and sandwiches” – This is according to

U.S Department of Labor: Bureau of Labor and Statistics. This is a good sign of

developing the product since it is currently the trend among college students according

to Dr. Helen Davis.

1.3 Market Description

Based on the records of the school registrar has anestimated population of

8,000. The College of Arts and Sciences alone has 4,916. For the needed market and

demands of the business in order to supply their products, the population of the location

is considered as good enough for the initial operations.

It is considered that the profitability of the venture will be good enough based on

the market of the business, the continuous growth of the population, and the non-stop

changes in the industry. The market always seeks for more new products and services,

especially in the food and beverage industry.

1.4 Management Team

Kevin Nambio is the General Manager. He is qualified for these positions based

on his experiences. Furthermore, he has skills of handling and leading a certain group of

people.

JardinePanado is the Marketing Manager. He has performed well in managing

figures and is well-reliable in terms of marketing aspects. Therefore, this partner is right

for the job.

Clarence Lasam is the Operations Manager of the business. He has the

experiences and credentials that make him very fitting for the positions.

Paolo De Silva is the Human Resource Manager. He is well in relations with

other people and able to assess their skills and capabilities.

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Carlo Oro is the Finance Manager. He is responsible for all the financial aspects

of the partnership. This proponent deserves the positions;

The five partners have equal rights when it comes to managing and owning the

company. Harmonious relationship is ensured and unanimous decisions are to consider

during decision-making instances.

1.5 Financing Requirements

The partners of “Nutrich” will invest a capital of Php. 517, 600. All the expenses

will be driven from the stated amount and it will also cover the first operations of the

business.

1.6 Key Projections

By the end of the first year of “Nutrich” operations, it is projected that the

business will have a net income of Php753, 970.It is also projected that 9,600 will be its

expected sales in units per month for the first year of operations.

1.7 Proposed use of funds

81.92% (Php424, 000) of the business’ capital will be allocated for the

equipment. 13.25% (Php68, 600) will cover the operations and miscellaneous expenses,

and 4.8% will be allotted for the allowance for other expenditures.

It is also forecasted that 25% of the annual profit of the business will be allocated

for its repairs, improvements and upgrades. Also, 10% of it will be reserved for future or

sudden expenses which are not expected by the partnership.

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All the expenses, assets and income are shared equally by the partners. This is

decidedly so to avoid figure conflicts and to have equal rights when it comes to owning

and managing the business as a whole.

1.8 SWOT Analysis

Strengths

• Grocery owned in Pasig Market

• Meat and vegetable shops owner and suppliers in the market are family friends

• Farming land in Rizal

• Nutritious at the same time Affordable

• One of current food trend

• Government promotes for health and wellness

• Connections with chefs, culinary and HRM students

Weaknesses

• Non-diversified

• Campus Bound

Opportunities

• Increasing number of Filipino Health conscious

• Obesity prevention

• Advertisements

• Offer purely vegetarian meals

Threats

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• Direct and Indirect competitors

• New players in the market

• Non-stability of the economy

1.9 Competitors

Wendy’s

Strength

• More than 40 years of experience in the fast food industry

• Global presence with restaurants in around 30 countries

• Third largest burger chain with around 6650 locations

• Employee strength of 46000

• Globally recognized brand

• Strong supply chain network

• Popular for its taste and use of fresh beef instead of frozen

• Financial stability

• Effective marketing and advertising

Weakness

• Fast food perceived as unhealthy

• Operation of franchisees is difficult to manage

• Less number of locations as compared to its competitors globally

Opportunity

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• Global expansion

• Introduce the breakfast menu in all locations after revising the menu

• Acquisition of smaller restaurants

Threats

• Tough competition from McDonalds and Burger king

• Increase in price of raw materials

• People are getting conscious about their health and avoiding unhealthy fast food

• Diseases like obesity resulting from fast food consumption

Pizza Hut

Strength

• Huge popular brand name and high brand loyalty

• Innovative range of pizzas under one roof

• Hygenic food and quick service

• Sound financial situation and international turnover.

• Good advertising and marketing

• Over 20,000 franchises around the world

Weakness

• Loyal customers are feeling that the satisfaction of the pizzas is declining.

• Franchise management

• Lack of an organic pizzas, which will limit the target market

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Opportunity

• New Pizzas with different crust sizes and flavors.

• Venture more into home delivery

• Venture into newer markets

Threats

• Threat from Dominos pizza, also from Mc Donald’s who have tried to introduce a new

meal that is a Pizza.

• Health conscious people.

• The rising prices of special ingredients like cheese, used in pizzas.

Subway

Strength

• Worldwide brand recognition and high brand loyalty

• Menu reflects demand for fresh, healthy and fast food.

• Hygenic food and quick service.

• Customizable menu offerings.

• Franchisee staff training is structured, brief and designed to assure rapid start-up for

new employees.

• Offer healthy subs sandwich that are preferred and much better as compared to food

items offered by other fast-food chains like McDonald’s

Weakness

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• No online presence

• Franchise management on a global level is a challenge

• Not diversified

Opportunity

• Introduce better vegetarian products

• Introduce home delivery

• Emerging markets and expansion abroad.

Threats

• Threat from other eating joints/restaurants

• Health conscious people

1.8 Exit Strategy

A good exit strategy for a short-term business like “Nutrich” is to merge with

another business or be acquired by an existing one. With this strategy, the business may

continue with other owners’ abilities. Another easy strategy is to sell the business.

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SECTION 2

BUSINESS DESCRIPTION

2.1 Mission and Vision

Mission

“To provide a snack that is healthy, tasty and affordable that will surely satisfy the

customers’ cravings.”

Vision

“To become one of the leading sandwich sellers, in different colleges in Metro

Manila and the whole country; and to satisfy the aesthetic wants of the customers.”

2.2 Source of Idea

The partners decided to think of a snack that will surely click to the market which will not

be expensive and will tend to the “health-conscious” market. The sandwiches come in different

flavors, and therefore flexible to the different tastes and preferences of customers.

2.3 Legal Form of Business

“Nutrich” is a partnership business enterprise owned by Kevin Nambio, JardinePanado,

Clarence Lasam, Paolo De Silva and Carlo Oro, all fourth year Legal Management students,

whereas all the investments and profits are shared equally.

2.4 Entry Strategy

The proponents’ main entry strategy will involve the social media like putting

advertisements in social networking sites such as Twitter and Facebook. After such

preparations, all the other needed requirements for the business will be made.

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2.5 Product Description

Our sandwich is a delicious treat made by using different dressings and fresh

ingredients. Our sandwich is focused mainly in providing for the health benefits towards its

customersIt is also easy to make because the meat we used is pre-cooked and can be

consumed by using microwave.Cake pops can also be a tricky-treat for kids since we also

included some vegetable-flavored pops that will surely attract kids and other health conscious

people.

Table 2.5.1 Sandwiches

ChickenSandwich - a chicken flavored sandwich which

is either fillet or sliced into bits mixed with mayonnaise

and with different vegetables upon the customer’s

choice.

Tuna Sandwich - a tuna flavoredsandwich dipped in

olive oil matched with different dressings and

vegetables of the customer’s choice.

Ham - a ham sandwich paired with cheese and

mayonnaise.

2.6 Product Research and Development

The management wanted to do research and development to other existing related

company for them to improve and develop the product and with the data that has been

gathered, the management can now decide further improvement like adding additional flavors or

additional products.

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SECTION 3

MARKET ANALYSIS

3.1 Industry Analysis

The food and beverage industry is expected to grow between 5% and 10% this year,

driven by demand in health foods and beverages, according to Tradecon: a company that

organizes trade expositions.

The industry for the food and beverages continuously grows and this is a terrific sign for

the business. It is easy to determine and conclude that this industry will keep on growing

because of the fact that everybody needs food and beverages. It is a strong quality of the

industry that it is indeed a necessity for each individual. It is not hard to set a market especially

when your price is affordable by most of the population. Another thing is that the trends in this

market keep on changing. There are always lots of opportunities, but, as well as threats.

Competition is indeed tight and each business should have lots of innovations to ride on the fast

track of changes in the society.

3.2 Target Market

“Nutrich” considers the college students in Metro Manila but the operation will initially

start in San Beda College. Therefore, they are the ones that could easily gain access and

consume the products of Nutrich.

3.3 Marketing Research

The partners based their research on the internet, data about the food and beverage

industry, and past business plans. Also, interviews with regards to the population, competition,

prototypes and market were held. The information needed by the partners was well

distinguished and acquired with the use of the research and interviews.

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The partners came up with the need to survey on a certain number of random

respondents (100). The next data were gathered and based from the survey forms answered by

the 100 randomly chosen respondents.

3.4 Competition

As of present time, there are few direct competitors such as Subway and the Sandwich

Guy but since they are focused and located in malls and other public places they will not directly

affect the schools as our target market. Some indirect competitors of “Nutrich” within the vicinity

are Pizza Hut, Wendy’s and some small establishments selling breads and pastries. “Nutrich”

and its competitors share the same market and are therefore pressured to beat each other’s

potential demands.

The population is continuously growing. This means that the market grows as well.

These competitors have the advantage of being famous around the vicinity already but that

does not stand as a threat to Nutrich. In terms of marketing, the competitors may have the

advantage of spreading news and other new products faster while in production, these

competitors are obviously bigger and more experienced. They are capable of producing in bulk

in a fast way. This is a big threat to Nutrich since the business is new and is capable of

producing in small amounts first.

Inside out analysis

Skills

• Business experience

• Photography

Resources

• Grocery located in marketplace

• Cooking equipment

• Microwave

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• Toaster

• Farming lot in JalaJala, Rizal

Connections

• Suppliers of vegetables and meat

• Meat and vegetable shop owners

• Freelance models

• Chef

• HRM students

• Farmer

• Nutrionist / Fitness trainers

Outside in Analysis

Political

The Congress Promotes Healthy Lifestyle > Increase Demand for Nutritious food

(House Bill No.69)

Economic

Economic Improvement in The Philippines >The market would consider ideas into eating a

healthy lifestyle unlike before because eating healthy is expensive.

(Jose Albert, NCSB)

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Social

Lifestyle trend: The new trend is being fit >

Media Views: Slim is the new beautiful > Increased number of diet conscious people

Fashion and role models: Actors and actresses are all into fit and healthy lifestyle >

Technological

The rise of social networking websites > Promotions and advertisements can be easily

communicated

3.5 Barriers to Entry

An obstacle that “Nutrich” may experience is its entry to the market. With the present

existing businesses that cater the market with sandwiches that are already well-known, this may

pressure “Nutrich” to push its advertisements for the market to try its products.

Operational Risks

Since “Nutrich” is a new business, it may experience some operational risks

which are inevitable.

Legal Requirements

All ventures need legalities to start its operations, there may be requirements

which may not be acquired for some reasons.

High Start-up Costs

One of the most common problems of starting a business is in terms of its

financial requirements.

Lack of Viable Business Location

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Since the business is not yet operating at present time, the location that it is

eyeing on may not be available anymore and in schools are usually full because

of the captured market it provides.

Competition

“Nutrich” as a starting business has its competitors as a threat for its stability as

an establishment in the food and beverage industry.

SECTION 4

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OPERATIONS

4.1 Marketing Strategy

It is with the product development, pricing, distribution, management, promotion and

other things that will help in increasing sales of Nutrich.

Nutrich is centered with the concept of customer satisfaction. It is their main goal and it

is important that the organization will successfully engage with the customers, prospects and

competitors in this industry.

4.1.1 Overall Marketing Strategy

Nutrich as a beginning business holds the fact that its competitors will be better

when it comes to marketing strategies. With this “Nutrich” sets its strategies to its early stages

with easy access to customers such as low-priced quality products.

4.1.1.1 Product Strategy

Since “Nutrich” is located inside San Beda College which is surrounded

by schools. The company has a higher chance of sales because our main target

market is student. Students nowadays don’t just eat food with their mouth

palatability of a food is also considered one of the greatest factor why people buy

the food.

4.1.1.2 Positioning Strategy

Nutrich engage in sandwiches, competes with others and establishments

which offer similar products. It serves some healthy products which are good for

the adults and the children as well especially to students. The sandwich of

Nutrich can be as healthy as you think because it really is based on its content

and it is affordable especially to students.

4.1.1.3 Points of Differentiation

Compared to other sandwiches and other establishments selling the

same, “Nutrich” serves deliciously healthy products. The flavors are chosen with

care and are assured good for the taste buds and to the body. Since students are

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considered the business’ target market, it also sells at a low price. The products

are customized depending on the customers’ demands. The customers can give

their requests; they can get their orders after a minute and thirty seconds. The

business can also branch out to other universities.

4.1.2 Pricing Strategy

Establishments like “Nutrich” can ensure profitability and longevity by giving

attention on its pricing strategy. Since students are the company’s primary targeted

market, a lower price and a healthy product is considered to attract customers and can

help the business to enter the market. Increase in price can be gradually implemented

depending on how the customer will accept the product.

4.1.3 Promotions

• “Nutrich”, as a starting business, needs enough promotions for it to be acknowledged.

As a small business, it will start with easy and low-cost promotions such as advertising

through social media like Facebook and Twitter, flyers, and word of mouth. In addition, it

will also have its promo which gives first 5 buyers of Nutrich sandwich will have a chance

to get a free shirt, Barkada Treat: Buy three get one and we hired freelance models for

advertisements.

4.1.3.1 Advertising

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4.1.3.2 Public Relations

“Nutrich” aims to have a good name in the industry. It is a good strategy

as well to have good public relations; this will further keep the connection

between the business and its market. With good public relations, “Nutrich” can

use this as better connection than advertising. “Nutrich” targets to acquire its

customers’ trust.

4.2 Production Plan

The production of “Nutrich” is well-organized for the assurance of the quality of the

products and for the proper canvassing of the equipment and supplies. Also, this will be the

certified procedure which makes everything systematized and standardized.

4.2.1 Operations Model and Procedure

The start of the project starts at the purchasing of goods at the market then followed by

the delivery of the goods to the designated kiosks, upon arrival at the kiosk the process of

preparation starts for a matter of an hour for the start of operation, the digital advertisement

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starts after the purchase as well in order to present a product upon check up by the consumers

then the packaging which will lead to waste management together with the preparation, then the

sales promotion which will all lead to selling.

Figure 4.2.1.1 Flowchart of Actual Business Operation

Time Personnel Daily Activities6:00 am Delivery helper Pick-up of goods

6:00 – 7:00 am Delivery helper Delivery of the goods to kiosk (Travel time)

7:00 - 8:00 am Delivery helper & Sales associate

Preparation of the purchased goods

8:00 am – 6:00 pm Sales associate Selling period6:00 - 7:00 pm Sales associate Waste disposal &

Cleaning of premises

The figure above shows the flow of operation of the business. First is to canvass all the

equipment, materials and supplies that is needed for the company’s operation. Then the

company can have now a variety of choices to choose to purchase all equipment, materials and

supplies that is needed after purchasing an initial inventory must be done. Since the company is

just on a stall basis the product must be already prepared and ready to be sell but quality control

must be implemented since food is the company’s product, sanitation is a must. Then the

product is now ready to be on sale, at the end of each day an inventory must be done and

evaluation and control is also needed to evaluate the product sales, the customers and the

personnel.

4.2.2 Business Location

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It is located at San Beda College Mendiola, Manila. The place was chosen based

on the possible target market and there are currently little competitors.

Figure 4.2.2.1 Location of the Business

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Oven

Sink/ dishw

ashing area

Preparation area

Tools and equipment

Cabinet stock and refrigerator

4.2.3 Facilities and Equipment

“Nutrich” acquires different equipment for its continuous operations. All are priced

and checked within the budget of the partners and are ensured of quality for better

operations of the business.

Figure 4.2.3.1 Nutrich kitchen layout

Figure 4.2.3.2 Kiosk Layout

Table 4.2.3.3 Equipment Details

Facilities/ Picture Quantity Quoted Price

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Equipment (Php)

Refrigerator 1 14,795

Oven 1 2,000

Gas stove 1 2,028

Frying Pan 1 1,000

Casserole 1 2,300

Chopping

Board

1 975

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Electric fan 1 1,100

Spatula 1 350

Knife 1 425

4.3 Personnel

The management consists of the general manager, financial manager, operations and

marketing manager. They will be the one responsible for running the business. Also, an

employee will be hired and trained for the daily operations of the business. The employee will be

knowledgeable enough in running the operations for the production as well.

Table 4.3.1 Key Responsibilities

Position Responsibilities

General Manager Overall in charge and the one who over see

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everything.

Financial Manager Accounting of income, staff salary and

expenses

Operation Manager Identification of the needed supplies and raw

Materials. Also the one responsible for the

overall production of the product

Marketing Manager Developing of strategies to increase sales

Personnel Serving the product to the customer. The one

who personally interact with the customers &

for purposes of delivery.

4.4 Customer Support

“Nutrich” is committed to serve delicious and healthy sandwiches. For customer’s

support, they can post their concerns regarding the business in our facebook page.

4.5 Research and Development Plans

Nutrich provides deliciously healthy sandwiches to people especially to students.

Researches and observations are considered for the improvement and development of the

products and the company as well.

Putting Additional flavors will be considered by the management to satisfy more the

customers. It is also considered to put up more branches but it is still on the planning stage

depending on the customers’ feedback. The company wanted to provide loyalty card to the

frequent buyers the card will provide discounts and other perks for the customers.

4.6 Corporate Social Responsibility Programs

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After years of operation, “Nutrich” will cater to different public-related activities such as

sponsoring events for organizations which helps people such as charities. Also, the business

can sponsor such events for helping and at the same acquiring promotions as well.

SECTION 5

29

MANAGEMENT TEAM

5.1 Responsibilities of the Management Team

Departments Brief Description: Cycle: Department

Head:

Rank and File:

Marketing --incharge to

create or develop

strategy to

increase sales

--incharge of

promotion,

advertisements

JardinePanado

– Marketing

officer

Operations and

Production

--incharge of

identification of

the basic needed

supplies and raw

materials for the

daily operation of

the business

--incharge of the

production of the

product in the

kiosk

Clarence Lasam

– Operations

Supervisor

Delivery/Helper,

Sales Associate

Human

Resource

--incharge of the

identification of

hiring new

employees

--incharge of

managing the

assessment of a

new employee

evaluation of the

employee's

performance

Juan Paolo De

Silva - Resource

Manager

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employee's

evalutions, job

descriptions

--incharge of

developing the

position

description and

other

personalities in

the business

Finance --incharge of the

accounting of the

business

income/expenses

--incharge of all

the money that

goes in/out of the

business

Carlo Oro –

Finance

Manager

Cashier

General

Manager

Oversees all

administrative

operations;

Leads and

directs

employees;

Ensures

administrative

efficiency,

implementation

of policies and

employee morale

Kevin Nambio-

General

Manager

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DIFFERENT DEPARTMENTS OF THE COMPANY

MANAGERIAL POSITIONS

General Manager

• Duties

• Increases management's effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers

• Develops strategic plan

• studying technological and financial opportunities

• Plans, directs and coordinates the operations of business

• Call for meeting with the department managers for their reports in their respective

operation in the business

• establishing plans, budgets, and results measurements

• Checks Overall progress of the business

• allocating resources

• reviewing progress & making mid-course corrections

• Maintains quality service by establishing and enforcing organization standards

• establishing personal networks & participating in professional societies

• Skills/Qualifications

• Finished a degree in any management or business course

• Has a experience in handling a business

• Have a basic computer skills

• Have a good communication skills in verbal or written

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• Have a good leadership skills and problem solving skills

• Must feel comfortable in a position of authority that includes coaching,

rewarding and disciplining employees in a responsible and effective matter.

• Understands organization’s culture.

• Open to various concerns and changes in the company.

• Must be proficient in developing strategy.

Marketing Manager

• Duties

• Provides information by collecting, analyzing, and summarizing data and trends.

• Achieves marketing and sales operational objectives by contributing marketing

and sales information and recommendations to strategic plans and reviews

• identifying trends

• determining system improvements & implementing change

• Accomplishes marketing and sales objectives by planning, developing,

implementing, and evaluating advertising, merchandising, and trade promotion

programs

• Studying competitors' products

• Finding ways to improve the sales of products and services


• Finished any marketing management and other business courses



• Have a knowledge of wide marketing techiniques and concepts

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• Have a creative mind

Operations Manager

• Duties

• Responsible for increasing company efficiency by analyzing systems and

recommending programs.

• Maintains an up-to-date inventory of ingredients;

• Monitors and evaluates product ingredients;

• Designing the operation's products, services and processes

• Identifies operational problems and resolves them.

• Oversees the preparation and production of burger ingredients;

• Identifies project scopes and prepares the necessary requirements.

• Planning and controlling

• Improving the performance of operation of the company.

• Maintains quality customer service by establishing and enforcing organizational

standards.


• A degree in operation management or any other operations and business course.

• Demonstrated leadership ability.

• Organizational effectiveness and operations management implementing best

practices.

• Commitment to social justice and the mission

• Excellent computer skills and proficient in Excel, Word, Outlook, and Access

• Excellent communication skills both verbal and written

• Excellent interpersonal skills and a collaborative management style.

• Excels at operating in an fast pace, community environment

• Ability to look at situations from several points of view

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• Persuasive with details and facts

• Delegate responsibilities effectively

• High comfort level working in a diverse environment

Human Resource Manager

• Duties

• Maintains the work structure by updating job requirements and job descriptions

for all positions.

• Maintains organization staff by establishing a recruiting, testing, and interviewing

program; counseling managers on candidate selection; conducting and analyzing

exit interviews; recommending changes.

• Prepares employees for assignments by establishing and conducting orientation

and training programs.

• Maintains a pay plan by conducting periodic pay surveys; scheduling and

conducting job evaluations; preparing pay budgets; monitoring and scheduling

individual pay actions; recommending, planning, and implementing pay structure

revisions.

• Ensures planning, monitoring, and appraisal of employee work results by training

managers to coach and discipline employees; scheduling management

conferences with employees; hearing and resolving employee grievances;

counseling employees and supervisors.

• Maintains employee benefits programs and informs employees of benefits by

studying and assessing benefit needs and trends; recommending benefit

programs to management; directing the processing of benefit claims; obtaining

and evaluating benefit contract bids; awarding benefit contracts; designing and

conducting educational programs on benefit programs.

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• Ensures legal compliance by monitoring and implementing applicable human

resource federal and state requirements; conducting investigations; maintaining

records; representing the organization at hearings.

• Maintains management guidelines by preparing, updating, and recommending

human resource policies and procedures.

• Maintains historical human resource records by designing a filing and retrieval

system; keeping past and current records.

• Maintains professional and technical knowledge by attending educational

workshops; reviewing professional publications; establishing personal networks;

participating in professional societies.

• Contributes to team effort by accomplishing related results as needed.


• Have a degree in human resource management or any managerial course.

• Good communication skills in verbal or written.

• Proficiency in maintaining employee needs.

• Should be knowledgeable in labor law and company relations.

• Should be able to resolve conflict and make tough decisions.

• Can work well with different kind of people within and outside the organization.

• Able to analyze information quickly and use it to make robust decisions.

• Able to gain commitment from different quarters in order to benefit the

organization.

Finance manager

• Duties

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• collating, preparing and interpreting reports, budgets, accounts, commentaries

and financial statements;

• undertaking strategic analysis and assisting with strategic planning

• producing long-term business plans

• undertaking research into pricing, competitors and factors affecting performance

• controlling income, cash flow and expenditure

• managing budgets

• developing and managing financial systems/models

• carrying out business modeling and risk assessments

• supervising staff

• keeping abreast of changes in financial regulations and legislation.

• providing and interpreting financial information


• Prefer graduates with qualifications in accountancy, statistics, economics,

mathematics, management or business subjects.

• Good communication skills in verbal and in written.

• Knowledge of tax and other compliance implications of non-profit status.

• Knowledge in bookkeeping and accounting

• Has the potential to lead and motivate others;

• Strong attention to detail and an investigative nature;

• Has the ability to balance the demands of work with study commitments;

• Good time management skills and the ability to prioritize;

• commercial and business awareness;

• excellent communication skills

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• high numeracy and sound technical skills;

• Good at problem-solving skills and initiative;

RANK AND FILE

Sales Associate

• Duties

• Compute and record totals of transactions

• Answer customers' questions, and provide information on procedures or policies.

• Accept payment from customers, and make change as necessary.

• Communicate with customers regarding orders, comments, and complaints.

• Greet customers upon approach.

• Issue receipts, refunds, credits, or change due to customers.


• Must be a high school graduate

• Knows basic problem solving in mathematics.

• Highly skilled in providing prompt and friendly customer service

• In-depth knowledge of operating cash register and maintaining cash drawer

• Food handling and sanitation knowledge.

• The ability to handle pressure and maintain an adequate energy level.

Delivery/Helper

• Duties

• General Cleaning of the stall and storage of the food for freshness

• Cooking or preparing the order of the customer

• Buying of need supplies and raw materials

• Greet customers upon approach

• Skills Qualifications

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• Must be a high school graduate

• Must be able to work during weekdays or afternoon shift.

• Initiative and common sense.

• The ability to listen and learn fast.

• Understands the importance of health and hygiene.

5.2 Organizational Structure

The proponents decided to have a line and staff organization. It demonstrates a simple

chain of command.

39

Figure 5.2.1 Organizational Chart of Nutrich

The figure above shows the organizational chart of “Nutrich” where the General Manager

will lead and the Operations Manager, HR Manager, Marketing Manager and Finance Manager

have equal standings. Under the Operations Manager are the Sales associate and

Delivery/Helper man.

A partnership is critical when it comes to decision-making. It is decided to always have

not just a majority of decisions among the partners, but to come up with unanimous ones.

5.3 The Management Team

40

General Manager

Finance Marketing Operations Supervisor

Sales Associate

Delivery/Helper

Human Resource

MANAGERIAL POSITIONS

General Manager

• Duties

• Increases management's effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers

• Develops strategic plan

• studying technological and financial opportunities

• Plans, directs and coordinates the operations of business

• Call for meeting with the department managers for their reports in their respective

operation in the business

• establishing plans, budgets, and results measurements

• Checks Overall progress of the business

• allocating resources

• reviewing progress & making mid-course corrections

• Maintains quality service by establishing and enforcing organization standards

• establishing personal networks & participating in professional societies


• Finished a degree in any management or business course

• Has a experience in handling a business



• Have a good leadership skills and problem solving skills

41

• Must feel comfortable in a position of authority that includes coaching,

rewarding and disciplining employees in a responsible and effective matter.

• Understands organization’s culture.

• Open to various concerns and changes in the company.

• Must be proficient in developing strategy.

Marketing Manager

• Duties

• Provides information by collecting, analyzing, and summarizing data and trends.

• Achieves marketing and sales operational objectives by contributing marketing

and sales information and recommendations to strategic plans and reviews

• identifying trends

• determining system improvements & implementing change

• Accomplishes marketing and sales objectives by planning, developing,

implementing, and evaluating advertising, merchandising, and trade promotion

programs

• Studying competitors' products

• Finding ways to improve the sales of products and services


• Finished any marketing management and other business courses



• Have a knowledge of wide marketing techiniques and concepts

• Have a creative mind

42

Operations Manager

• Duties

• Responsible for increasing company efficiency by analyzing systems and

recommending programs.

• Maintains an up-to-date inventory of ingredients;

• Monitors and evaluates product ingredients;

• Designing the operation's products, services and processes

• Identifies operational problems and resolves them.

• Oversees the preparation and production of burger ingredients;

• Identifies project scopes and prepares the necessary requirements.

• Planning and controlling

• Improving the performance of operation of the company.

• Maintains quality customer service by establishing and enforcing organizational

standards.


• A degree in operation management or any other operations and business course.

• Demonstrated leadership ability.

• Organizational effectiveness and operations management implementing best

practices.

• Commitment to social justice and the mission

• Excellent computer skills and proficient in Excel, Word, Outlook, and Access

• Excellent communication skills both verbal and written

• Excellent interpersonal skills and a collaborative management style.

• Excels at operating in an fast pace, community environment

• Ability to look at situations from several points of view

• Persuasive with details and facts

43

• Delegate responsibilities effectively

• High comfort level working in a diverse environment

Human Resource Manager

• Duties

• Maintains the work structure by updating job requirements and job descriptions

for all positions.

• Maintains organization staff by establishing a recruiting, testing, and interviewing

program; counseling managers on candidate selection; conducting and analyzing

exit interviews; recommending changes.

• Prepares employees for assignments by establishing and conducting orientation

and training programs.

• Maintains a pay plan by conducting periodic pay surveys; scheduling and

conducting job evaluations; preparing pay budgets; monitoring and scheduling

individual pay actions; recommending, planning, and implementing pay structure

revisions.

• Ensures planning, monitoring, and appraisal of employee work results by training

managers to coach and discipline employees; scheduling management

conferences with employees; hearing and resolving employee grievances;

counseling employees and supervisors.

• Maintains employee benefits programs and informs employees of benefits by

studying and assessing benefit needs and trends; recommending benefit

programs to management; directing the processing of benefit claims; obtaining

and evaluating benefit contract bids; awarding benefit contracts; designing and

conducting educational programs on benefit programs.

• Ensures legal compliance by monitoring and implementing applicable human

resource federal and state requirements; conducting investigations; maintaining

records; representing the organization at hearings.

44

• Maintains management guidelines by preparing, updating, and recommending

human resource policies and procedures.

• Maintains historical human resource records by designing a filing and retrieval

system; keeping past and current records.

• Maintains professional and technical knowledge by attending educational

workshops; reviewing professional publications; establishing personal networks;

participating in professional societies.

• Contributes to team effort by accomplishing related results as needed.


• Have a degree in human resource management or any managerial course.

• Good communication skills in verbal or written.

• Proficiency in maintaining employee needs.

• Should be knowledgeable in labor law and company relations.

• Should be able to resolve conflict and make tough decisions.

• Can work well with different kind of people within and outside the organization.

• Able to analyze information quickly and use it to make robust decisions.

• Able to gain commitment from different quarters in order to benefit the

organization.

Finance manager

• Duties

45

• collating, preparing and interpreting reports, budgets, accounts, commentaries

and financial statements;

• undertaking strategic analysis and assisting with strategic planning

• producing long-term business plans

• undertaking research into pricing, competitors and factors affecting performance

• controlling income, cash flow and expenditure

• managing budgets

• developing and managing financial systems/models

• carrying out business modelling and risk assessments

• supervising staff

• keeping abreast of changes in financial regulations and legislation.

• providing and interpreting financial information


• Prefer graduates with qualifications in accountancy, statistics, economics,

mathematics, management or business subjects.

• Good communication skills in verbal and in written.

• Knowledge of tax and other compliance implications of non-profit status.

• Knowledge in bookkeeping and accounting

• Has the potential to lead and motivate others;

• Strong attention to detail and an investigative nature;

• Has the ability to balance the demands of work with study commitments;

• Good time management skills and the ability to prioritize;

• commercial and business awareness;

• excellent communication skills

46

• high numeracy and sound technical skills;

Good at problem-solving skills and initiative;

5.4 Business Ownership

“Nutrich” is equally owned by five partners. They will likewise invest on the business

which will be used to start the business as well as the miscellaneous expenses on the first

months of operation. Each of them will have a 20% of share which givesNutrich Php517,600as

its starting capital.

Table 5.4.1 Capitalization and Ownership Distribution

Partners Position Percent of

Ownership

Personal

Investment

Nambio, Kevin General Manager; 20% Php103,520

Panado, Jardine Marketing Manager 20% Php103,520

Lasam, Clarence Operations Manager 20% Php103,520

De Silva, Paolo HR Manager 20% Php103,520

Oro, Carlo Finance Manager 20% Php103,520

Total 100% Php517,600

5.5 Standard Operating Procedure

47

STANDARD OPERATING PROCEDURES AND CONTROL POLICIES

Purpose: For sanitation purposes and guaranteed food safety.

All employees:

• Must come at work neat and on time.

• Must maintain clean hands in preparing food/ingredients.

• Must always wear hairnets and gloves in preparing and serving orders

• Must manage waste properly & maintain cleanliness of the premises

• Must always see to it that all utensils are properly sanitized.

5.6 Performance Appraisal tool

PERFORMANCE APPRAISAL TOOL

This appraisal form is to assess and evaluate the employees' during his/her performance in the

businees. this is to improve and to develop the daily operation of business at the same time

improves the employees' skills

NUTRICH CORPORATION

Appraisal tool

Employee Name:

Department:

Please check the box that best describe frequency of performance measure

Customer Focus: Employee understand who his/her customers are and proactively responds to

customer needs. Employee adheres to ministry service standards with every customers.

Never

1 2

Sometimes

3 4

Always

5

48

Employee

Self-

Assessment

Employee

Comment

Manager’s

Assessment

Managers’

Comment

Teamwork: Employee values team interactions and works effectively with others. Is a team

player and helps encourage and orient new team members. Is able to balance personal effort

with project team effort.

Never

1 2

Sometimes

3 4

Always

5

Employee

Self-

Assessment

Employee

Comment

Manager’s

Assessment

Managers’

Comment

Job knowledge: Employee understand every aspect of job tasks and responsibilities and

proactively updates job skill. Offers assistance to help others improve job skills

Never

1 2

Sometimes

3 4

Always

5

Employee

Self-

Assessment

Employee

49

Comment

Manager’s

Assessment

Managers’

Comment

Communications: Employee communicates professionally with others in print and shares

thoughts and ideas appropriately. Listens to others and ask questions for clarity. Controls

emotions under pressure.

Never

1 2

Sometimes

3 4

Always

5

Employee

Self-

Assessment

Employee

Comment

Manager’s

Assessment

Managers’

Comment

50

SECTION 6

FINANCIAL PROJECTIONS

This section will tackle all things necessary with regards to the financial aspects of the

company. This aims to provide the initial capital of the business and the financial projections. All

required finances and sources are also stated in this section.

7.1 Financial Assumptions

Annual increase in sales due to increase in population and target market

Raw materials and supplies prices are increasing using the average 3.2% inflation rate

Rental and selling expenses are projected constant for three years

Straight line method will be used in the depreciation of machines and equipment

All transactions are cash based

51

PROJECTED INCOME STATEMENT OF NUTRICH

YEAR 1 YEAR 2(2kiosk) YEAR 3(3 kiosk)

Revenue 6,912,000 13,824,000 24,192,000

Cost of Sales 5,068,800 10,386,432 18,756,864

Gross Profit 1,843,200 3,437,568 5,435,136

Advertising 10,000 10,000 10,000

Compensation 331,200 590,400 921,600

Travel/Delivery 86,400 86,400 109,440

Lease 300,000 600,000 900,000

Utilities 36,000 72,000 108,000

Total Operating Expense 763,600 1,358,800 2,049,040

EBIDTA 1,079,600 2,078,768 3,386,096

Depreciation 2,500 5,000 7,500

Operating profit 1,077,100 2,073,768 3,378,596

Earnings before taxes 1,077,100 2,073,768 3,378,596

Income tax 323,130 622,130.4 1,013,578.8

Net Income 753,970 1,451,637.6 2,365,017.2

52

BREAKEVEN ANALYSIS

Quantity Price Total

Sales 115,200 P60 P6, 912,000

Variable Cost 115,200 P44 P5, 068,000 (73.32%)

Contribution Margin 115,200 P16 P1, 844,000 (26.68 %)

Fixed Cost P763, 600

Operating Income P1, 080, 400

Breakeven sales (fixed cost/contribution margin)

763,000 / 73.32% = 1,040, 643.75

Breakeven Sales = P 1, 040, 643.75

Breakeven Sales per day = P3, 613

Breakeven units

1,040,643.75 / P60 = P17, 344 units

Breakeven units per day = P60 units

53

Product costing

Tuna Sandwich

Tuna P50/can P10

White onion P80/kilo P2

Tasty P60/loaf P12

Lettuce P80/kilo P4

Tomato P40/kilo P2

Mayonnaise P240/kilo P3

Mustard P40/bottle P2.5

Cheese P40/200g box P2.5

Cabbage P20/kilo P1

Cucumber P60/kilo P3

Packaging P2

P44

Ham Sandwich

Ham P160/kilo P12

Tasty P60/loaf P12

Lettuce P80/kilo P4

Tomato P40/kilo P2




Cabbage P20/kilo P1

Packaging P2


P44

54

Chicken Sandwich

Chicken P120/kilo P10

Tasty P60/loaf P12

Lettuce P80/kilo P4

Tomato P40/kilo P2




Cabbage P20/kilo P1

Packaging P2


P44

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Machinery and equipment

Price Life Annual Depreciation

Refrigerator 14,795 10 1,479.5

Casserole 2,300 10 230

Microwave 2,000 10 200

Electric stove 2,028 10 202.8

Frying pan 1,000 10 100

Electric fan 1,100 10 110

Chopping board 975 10 97.5

Knife set 452 10 45.2

Spatula set 350 10 35

P25000 P2500

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Projected Balance sheet

Cash 68,600 822,570 1,520,257.6 2,433,617

Inventory 424,000 424,000 424,000 424,000

Total current assets 492,600 1,246,570 1,944,257.6 2,857,617

Fixed assets 25,000 25,000 25,000 25,000

Total assets 517,600 1,271,570 1,978,025 2,882,617.2

Owner’s equity

Paid-in capital 517,600 517,600 517,600 517,600

Retained earnings 753,970 1,451,637 2,365,017.2

Total equity 517,600 1,271,570 1,978,025 2,882,617.2

57

Projected Cash Flow

Year 1 Year 2 Year 3

Net Income 753,970 1,451,637.6 2,365,017.2

Financing Activities

Cash investment 517,600

Cash Reconciliation

Beginning Cash 68,600 822,570 1,520,257.6

Change in Cash 783,970 697,687.6 913, 359.4

Ending Cash 822,570 1,520,257.6 2,433,617

Owners Profiles

58

Business Plan

Documents

Transcript of Business Plan