Polytechnic University of the PhilippinesCollege of Business AdministrationPUP Sta. Mesa, ManilaCUPCAKE DELITEIn partial fulfillmentOn the reuirementsOf the course BUSINESS FINANCESu!mitted "o#Prof. $ennifer %. &. MunsayacSu!mitted By#Salvador, Bryan $ohn '. Santos, Ai(elene B."ampioc, Miralyn B."aniegra, Stephany Imma )ayra A. "e*ada, +e(ia 'aith C. BSBA MM ,-,.Table of Contents Sections PageI. /0ecutive Summary1. Brief %escription of the Pro*ect 2. Brief Profile of the /ntrepreneur ,. Summary of succeedingsectionsII. Mar3eting Plan1.1 %escription of the Product 1.2 Comparison of the Product 4ith Its Competitors 1., 5ocation 1.6 Mar3et Area 1.7 Main Customers 1.8 "otal %emand 1.9 Mar3et Share 1.: Selling Price 1.; Sales 'orecast 1.1< Promotional Measures 1.11 Mar3eting Strategy 1.12 Mar3eting Budget III. S=O" Analysis SectionsPageIII. Production Plan2.1 Production Process 2.2 'i0ed Capital 2., 5ife of 'i0ed Capital 2.6 Maintenance and >epairs 2.7 Sources of /uipment 2.8 Planned Capacity 2.9 'uture Capacity 2.: "erms and Conditions of Purchase of /uipment2.; Office?Store 5ocation and 5ayout 2.1< >a4 Materials 2.11 Cost of >a4 Materials 2.12 >a4 Materials Availa!ility I@. Organi(ation and Management Plan,.1 'orm of Business ,.2 Organi(ational Structure ,., Business /0perience and Aualifications of the /ntrepreneur ,.6 Pre-Operating Activities ,.7 Pre-Operating /0penses ,.8 Office /uipment ,.9 Administrative /0penses SectionsPage@. 'inancial Plan6.1 Pro*ect Cost 6.2 'inancing Plan and 5oan >euirement 6., Security for 5oan 6.6 Profit and 5oss Statement 6.7 Cash 'lo4 Statement 6.8 Balance Sheet 6.9 5oan >epayment Schedule 6.: Brea3-even Point BB/PC 6.; >eturn on Investment B>OIC 6.1< 'inancial Analysis @I. AppendicesI. EXECUTIVE SUMMA!". BIEF DESCIPTI#N #F T$E P#%ECTPeople no4adays love s4eets. As 4e 3no4 more and more stores offering it, 4e also li3e tooffer ne4 food or s4eets in the mar3et that 4ould not only !e afforda!le !ut 4ill also satisfyyour appetite. Offeringproducts that 4ill !enefit theconsumers 4ill surelycaptivatetheirattention and in addition to that, 4e made our product attractive !y presenting different uniuedesigns. Cupca3e %e5ite is a locally o4ned !usiness. =ith the natural s4eet of Doney, consumers4ill perfectly en*oy s4eets 4ith lo4 car!ohydrates. As it 4as also an online !usiness, it 4ould !emore convenient for our customers to reach us due to increasing access on 4e!. =e 4ill alsoprovide free delivery to our customers living Cupca3e %e5ite mainly caters adult and teens atheart living around MetroManila especially around SMMegamall and near!ycities.=earecatering to those 4ho 4ant to satisfy their desire to eat our ama(ing products that 4ill surely ta3eall the stress a4ay, 4ith its satisfying taste and afforda!le price. Our !usiness 4ill not only fill upcravings of the tummy, !ut 4ill also meet the pleasure in eyes and heart.&. BIEF DESCIPTI#N #F T$E #'NE"he!usinessiso4ned!yMr.Bryan$ohnSalvador, Ms. Ai(eleneSantos, Ms. Miralyn"ampioc, Ms. StephanyImma )ayra "aniegra and Ms. +e(ia 'aith "e*ada. "heyare allMar3eting graduates fromPolytechnic University of the Philippines. "hey are financiallysufficient since they have their savings allotted for this dream !usiness, ma3ing them capa!le tooperate a small !usiness. "he idea of putting up the !usiness came from the !oth of the o4ners."hey are friends since college and they planned to put up the !usiness years ago !ut they !othhave less time and money to start. =hen they graduated, they made that plan possi!le. "hey are!oth 4illing to ta3e ris3s, highly 4illing to enter into a !usiness venture and are !oth eager tostay in the path of victory. .o matter ho4 many times they may fall, they 4ere minded that!usiness affair is li3e that and has to go for4ard despite of trials that may arise through their*ourney to succession.(. SUMMA! #F T$E SECTI#NSManage)ent As*ectSPAradise is a parthership form of !usiness. /ach partners share all of the finance responsi!ility attached 4ithin the !usiness such as loss, depreciation, income etc. It has adopted functional typeof organi(ational structure 4hich starts 4ith a head authority and follo4ed !y su!ordinates. In this 3ind of organi(ational structure, it is much effective in assimilation of information and in !etter 4or3 e0ecution. Our !usiness includes t4o o4ners, one accountant, t4o managers for operations and mar3eting, purchasing officers and the 4or3ers for the actual service. =e reuire uniue service proposition *ust li3e other starting !usinesses. It is 4hat gives our !usiness originality and uniueness. =e have uniue feature in our !usiness that gives us advantage over other !usiness.Ma+,eting As*ect%eterminingdemandis vital inany!usiness. It gives a4areness tothemar3et andcapacity of the !usiness. Cupca3e %e5ite determined its demand through the time of 4or3 of ourtarget mar3ets from near esta!lishments in our location. "hrough this, 4e can pro*ect possi!leamount of supplies for our daily operation. "he sales forecast of our !usiness 4as ta3en !y oneyear. Our product amount ranged from 2o!insons Mall, Cro4n Pla(a, Doliday Inn and St. Paul Pasig.Availa!le space# &G' 27 sms H Php;easona!le pricing.'ea,ness .e4 on the mar3et, .ot 4ell 3no4n, %oes not have steady clientele and, Commercial rent is relatively e0pensive.#**o+t0nities /0pand, create more flavor of cupca3es, Open up more locations, Creating a sta!le position in the mar3et, A !igger clientele, Capitali(e on changing mar3et, $oin the trend of modern cupca3e design and, Offering our products to home parties or conducting in-office demonstrations 4ould most pro!a!ly increase our customer !ase and attract ne4 customers.T-+eats Increasing competition, %issatisfaction of the services, Customer loyalty, "here are other cupca3es stores in the area, >ecession, people to tend *ust to ma3e their o4n cupca3es at home and, Competitors could PstealQ our ideas Bad 4eather.Customers are e0pected more reluctant to visit coffee shops.&enerali(ation# People no4adays love s4eets. "hose s4eet-tooth people inspire us to !uild a Cupca3eBusiness.Since our !usiness 4hich is Cupca3e %e5ite is ne4 in the mar3et,there aresome4ea3nesses and threats to overcome. But still, there are opportunities to !e achieved that 4illsurely help us to prop up to a 4ider range of mar3et.VI. P#DUCTI#N PLAN2.1 Production Process 2.2 'i0ed Capital 2., 5ife of 'i0ed Capital 2.6 Maintenance and >epairs 2.7 Sources of /uipment 2.8 Planned Capacity 2.9 'uture Capacity 2.: "erms and Conditions of Purchase of /uipment2.; Office?Store 5ocation and 5ayout2.1< >a4 Materials 2.11 Cost of >a4 Materials 2.12 >a4 Materials Availa!ility&." P+o/0ction P+ocess CUPCAKE DELITE ULES AND E.ULATI#NS> .ENEAL BE$AVI# /mployees must !e fully uniformed. Suita!leroomareprovidedforthechangingandhangingofthe4earingapparel ofthe4or3ers or employees, 4hich shall !e separate and apart from the 4or3, storage and salesrooms, and shall !e 3ept in a clean and sanitary condition. .o person shall sit or lounge or !e permitted to sit, lie or lounge upon any of the ta!les,shelves, !o0es or other euipment or accessories used in connection 4ith the production,preparation, pac3ing, storing, display or sale of !a3eshop products in a !a3ery. Before !eginning the 4or3 or preparing, mi0ing or handling of any ingredients used in theproduction of !a3ery products, every person engaged in such 4or3 shall 4ash the hands andarms, and after using toilets or 4ater closets, every person therein engaged shall 4ash thehands and arms thoroughly and then rinse in clean 4ater, and for this purpose the o4ner oroperator of the !a3ery shall provide sufficient facilities and post notes to this effect. /mployees shall !e prohi!ited from smo3ing 4hile preparing and !a3ing food products. All !a3eshop products and ingredients thereof shall !e stored, handled, transported and 3eptso as to protect them from spoilage, contamination, disease and un4holesomeness. Bo0esand other permanent receptacle or containers for the storing, receiving or handling of !a3eryproducts shall !e so placed and constructed as to !e !eyond the reach of contamination fromstreets, alleys and side4al3s and from animals and shall !e 3ept clean and sanitary !y the!a3ery. .o o4ner of a !a3eshop shall permit any person affected 4ith any contagious, infectious orotherdiseaseorphysical ailment 4hichmayrendersuchemployment detrimental tothepu!lic health, nor any person 4ho refuses to su!mit to an e0amination, to 4or3 therein.CUPCAKE DELITE TIME AND ATTENDANCEStaffs are responsi!le for arriving on time and ready to !egin 4or3 !oth in attitude andappearance. In case of e0pected tardiness or a!sence, !a3eshop staffs must notify at least onemem!er of Ba3eshop Management not later than 6 hours !efore the start of their scheduled shiftRprefera!ly, or 4here possi!le the day !efore. =hen calling out, it is the responsi!ility of thatindividual toassist management infindingareplacement tocovertheirshift.Anyperiodofincapacity reuiring a!sence of five or more consecutive 4or3 days 4ill reuire a employee tota3eamedical leaveofa!senceandprovideamedical certificationformpriortotheleave,failure to provide proper leave documents 4ill !e considered an unauthori(ed leave of a!senceand may result in disciplinary action. CUPCAKE DELITE APPEAANCE ? .##MIN. STANDADSAnystoremayhavefa!ulousmerchandisetosell, !utifthestoreisdirtyandcleanlinessNhygiene is not maintained, 4ill leave a very !ad impression 4ith the customer. 'ollo4ing aresome of the Choco-5ite 'actory points for maintaining consistent cleaning and hygiene#Store name !oard and logo at the entrance should !e neatly maintained.Par3ing areashould !e clean of litter and !rightly lit Bat nightsC."he entrance should !e clean andinviting.&lass door should !e clean and free of fingerprints. If itSs glass or metal it must !e cleanand spar3ling. Ma3e it a priority to dust and use glass cleaner every morning and afterevery 2 hours minimally./nsure that the shelvesG display in this area should !e A5=AMS 3ept clean./nsure that the 4ashrooms are Osuea3y cleanF.And !ac3 stoc3 area must !e hiddenfrom the customerSs eyesT"he floors, 4alls and ceilings of !a3ery, the euipment used in the handling orpreparation of !a3ing products or the ingredients thereof, all vehicles transporting suchproducts andthe !o0es, !as3ets andother receptacles in4hichsuchproducts aretransported shall at all times !e 3ept !y the o4ner of Choco-5ite 'actory in a clean andsanitaryconditionandfreefromdirt anddust, flies, insectsandothercontaminatingmatter. All sho4cases, shelves and other places 4here !a3ing products are sold shall atall times !e 3ept !y the !a3ery 4ell-covered, properly ventilated, adeuately protected.Shipping!as3etsandothercontainersfortransporting!a3eryproductsshall !e3eptclean."he most important area of the store, no matter 4hat 3ind, is the place you e0change thecustomerFs hard earned money for something they value, your merchandise. Present itspotless.CUPCAKE DELITE#FFEIN.SCupca3es are great 4ays to feed your guests 4ithout !rea3ing the !an3.Also, as a fingerfood, they remove much of the hassle associated 4ith slicing and plating a larger tiered ca3e.=hile4e havecupca3es and!everagesavaila!le inourcases for gra!-and-go orders,sometimes you 4ant something a !it more customi(ed.5uc3ily, that happens to !e e0actly 4hat4e speciali(e in. Our cupca3e comes in different designs and it may depend on 4hat occasionsGevents or 4hat 4ill satisfy our customers. =e also offers cupca3es 4ith different fillings thatmay!e you guys 4ill not e0pect to !e cupca3eLs flavors.And the !est part of our product is that, it is a 5O= CA5O>I/ CUPCA+/. Mes, it is alo4-calorie cupca3e from decadent chocolate treats and fruity desserts to sugarless s4eets andgluten-free goodies. Instead of using lots of sugar 4e prefer honey. "his is something ne4 that4ill satisfy your s4eet tooth 4ithout compromising your diet.&.& Fi@e/ Ca*ital "9 Meas0+ing C0*s an/ S*oon Set2::.:: & P7+e@ P+e*1a+e &=C0* Meas0+ing C0*A clea+&2:.:: Nutrition FactsServin+ Si3e " ca$es 4)' +5Per er!ing% Daily "alue#Calories &.#Calories from Fat "'Total Fat "()+4%Saturated Fat &()+$%Cholesterol #m+%%odium "/#m+&'%Car(ohydrates ''+&&%6ietary Fiber #+%%Su+ars "&+Protein "+Vitamin A #1 7 Vitamin C #1Calcium "1 7 8ron -1 Stan/ )i@e+22: S*ee/ -an/ )i@e+94: ( Silicone S*at0la Sc+a*e+&4: & C0*ca,e Pans4:: Cooling ac,4&: ( Ca,e Teste+ (4: &4: c0*ca,e 1+a**e+s 8:: & C0*ca,e stan/ 88: ( F+osting ,nife"4:: Kitc-en ti)e+"4: Digital ,itc-en scale4:: "& Deco+ating set(8: ( Feat-e+1eig-t /eco+ating bags&:: & Foo/ *+ocesso+ 84: ef+ige+ate/ ba,e+7 cases an/ /+7 ba,e+7 /is*la7 cases6A::: ( /ec, oBen&5A::: & Ba,ing )ol/s(5: ( )i@ing bo1ls&4: ( F+enc- 1-i*s&&: &.( Life of Fi@e/ Ca*italST#E E O' "D/ "I"5/ "he delivery dates indicated !y thecompany of the euipment under theirPurchase Order must !e presented. Supplier must not ship the euipmentearlier or later than the delivery datespecified in BuyerFs Order.P>IC/S, CDA>&/S, I.@OIC/ N PAMM/." Payment of the euipment !eing purchasedshall !e in accordance 4ith the contract. Prices of theeuipment !eingpurchasedshall !einaccordanceunder right price,uality and condition. A company 4ill not accept shipment at anyincrease in price a!ove that indicatedPurchase Order.=A>>A."I/S Company3no4s theo!ligations andla4rule under the 4arranty in purchasingeuipment. Supplier4arrantyshall !eeffectiveforaperiod of 6 years from the date ofacceptance of the euipment.&.9 #fficeESto+e Location an/ La7o0tChoosing a location for !usiness 4ill have a great impact in everything the production does. 'or a!usinessto!esuccessful, oneshouldnot *ust choosealocationthat isavaila!le4ithout consideringfactors that may affect the outcome of a !usiness such as accessi!ility of the store to the target mar3et.'or our cupca3e !usiness, 4e choose to settle it to the place 4here the greatest num!er ofpotential consumers in the mall is e0posed. =e locate our !usiness at the lo4er ground floor,!ldg. A of SM Megamall. SM Megamall is one of the largest SM Supermalls developed andoperated !y SM Prime Doldings. As long as there are people shopping at the mall, great chancesmay happen that these people 4ill stay at the food court and !uy our chocolate cupca3es. "hesecan ma3e them rela0 and they 4ill en*oy decorating their chosen cupca3e. &.": a1 Mate+ials1. 'lour 2. Cocoa Po4der,. Doney6. Ba3ing Po4der7. Ba3ing Soda8. Salt9. Mil3:. /gg;. Icing Sugar1 and financial reports and annual transactions. In charge of !oo33eeping of therecord sales. 'emale 2, the company must su!mit thefollo4ing documents to the >evenue %istrict Office B>%OC# a. %uly completed application for authority to print receipts and invoices BBI> 'orm .o. 1;-1CR!. /mployment report B'orm >-1ACRc. 5ist of employees, specifying their !irth dates, positions, monthly salary and date of employmentR andd. Articles of incorporation, !y-la4s and S/C registration. Upon su!mission of the reuired documents, the SSS employer and employee num!ers 4ill !e released. "he employees may attend an SSS training seminar after registration. SSS prefers that all mem!ers go through such training so that each mem!er is a4are of their rights and o!ligations.egiste+ 1it- t-e P-ili**ine $ealt- Ins0+ance Co)*an7 IP-il$ealt-J "o register 4ith PhilDealth, the company must su!mit the follo4ing documents#a. /mployer data record B'orm />1CR!. >eport of employee-mem!ers B'orm />2CRc. S/C registrationR d. BI> registrationR ande. Copy of !usiness permit. egiste+ 1it- $o)e DeBelo*)ent M0t0al F0n/ IPag=ibigJ "o register 4ith the D%M', the corporation must su!mit the follo4ing documents#a. /mployerSs %ata 'orm B/%' V'P'egistration.&. Ba,es-o* E;0i*)ent Measuring Cup and spoon set Measuring cup, clear Stand mi0er Speed hand mi0er Silicone Spatula Scraper Cupca3e Pans Cooling >ac3 Cooling >ac3 Cupca3e 4rappers Cupca3e stand 'rosting 3nife +itchen timer %igital 3itchen scale 'lour sieve or sifter %ecorating pens %ecorating set 'eather4eight decorating !ags 'ood processor Ba3ing molds Mi0ing !o4ls 'rench 4hips(. F0+nit0+e an/ Fi@t0+es >efrigerated !a3ery cases and dry !a3ery display cases 'iles ca!inet "a!les Chairs2. P+oc0+e)ent of stoc,s. 'lour Cocoa Po4der Doney Ba3ing Po4der Ba3ing Soda Salt Mil3 /gg Icing Sugar @anilla /0tract =hipping Cream Butter Bro4n Sugar Chocolate Cream Cheese 'resh 'ruits Sprin3les Butter Mil3 .uts Icing gel colors4. Utilities "elephone Computer Printer Calendar Internet Connection /lectric Po4er BMeralcoC =ater Connection BMayniladC B'loor mopR BroomR %ust PanR "rash BinR 'loor MatsR Air 'reshenerC5. ec+0it)ent of Staff an/ labo+ Accountant Bon-callC Cashier Utility Man6. A/Be+tising an/ *+o)otion 'lyers B1