Section 1: EXECUTIVE SUMMARY

A. DESCRIPTION OF THE OPPORTUNITY

Sagot’t Gulaman or Samalamig is a drink consists of gulaman cubes and/or sago

(tapioca pearls) suspended in milk, fruit juice or buko pandan flavor. This drink comes in
many vibrant colors that are appealing to those looking for a cold, refreshing drink. They are
served in disposable plastic cups although they used to be more commonly served in glasses
in the past.

Likewise, our product which is Gulaman de Frutas is a preparation of gulaman cubes

with fruits suspended in milk which gives the creamy and fruity flavor of the drink. It’s best
for refreshing at any time of the day and in any occasions. Moreover, our product contains
also special ingredients that are healthy for our customer in an affordable price.

B. EXPLANATION OF THE BUSINESS CONCEPT

Filipino’s are very fond of sweets and cold, refreshing drinks such as the famous
sago’t gulaman. It is also a drink to accompany another merienda item. That is why we came
to sell Gulaman with fruits refreshment drink. This refreshment product has been established
and sells by the street vendors because of its wide opportunity specially when there is
occasion just like fiestas and of course makes profit out of this product. But the major reason
of setting up this small business concept is due to our beliefs that beverage industry will pare
the way for good opportunity not just for us but also to our target market. The main concept
of our enterprise is local beverage like gulaman juice with fruits, since we shared common
hobbies and interest into it, therefore, it prompted us to have this business.

C. INDUSTRY OVERVIEW

GRASHAS GULAMAN DE FRUTAS is a local beverage product business that will

supply the needs of refreshment of our customers especially during snack time. This will
allow replenishing the thirst particularly in students and teachers who are the potential market
of this business. Our product is a perfect combination for eating spicy foods like barbecues,
fish balls or when eating ube chips and other foods. Since the business provides refreshment
drinks for everyone, it is therefore belongs to beverage industry specifically in non-alcoholic
drinks. The Philippines rapidly growing food and beverage (F&B) industry is one of the
biggest contributors to the nation’s economy making up about half of its manufacturing
sector and contributing about 23-24 percent of the country’s GDP.

D. TARGET MARKET

Target market refers to a group of potential customers to whom a company wants to

sell its products and services. The target market of our business are the students and teachers
of the institution with in the age range of 12 years old above who shared common interest in
sweet refreshment drinks.
E. COMPETITIVEADVANTAGE TO BE ACHIEVED IN THE MARKET

E. 1 PRODUCT ADVANTAGE

The business offers good quality of gulaman juice with fruits. It has the sweet,
creamy, and fruity taste to be enjoyed by our customers. Unlike other juice products, our
product is new for the eyes of our customer that is appealing to them. Rest assured that all the
inputs that used in production are definitely in good condition for the customers so that they
will enjoy drinking our product as we made it with passion of love.

E. 2 PRICING ADVANTAGE

Our business used raw materials that has good quality but in low price so that our
target market can afford. In having a price of this product, we adapted a pricing strategy
which is relevant to other businesses.

Penetration Pricing works best for brand new businesses like us looking for
customers or for businesses that are breaking into an existing, competitive market which the
prices of products set artificially low in order to gain market share.

Competition –Based Pricing where we can price our products slightly below our
competition, the same as my competition or slightly above our competition.

E. 3 PRMOTION ADVANTAGE

We use to sell our product meeting face-to-face with the customer. We promote the

product through our attitude, appearance and specialist product knowledge. We aim to

inform and encourage the customer. We share information’s or opinions about our

product, company, or brand, from one consumer to other.

E. 4 DISTRIBUTION ADVANTAGE

Our product will be sold inside the school campus wherein our potential target market

situated. It is our advantage since only few in this institution were able to sell almost the same

product, so it’s a perfect location of selling puto with few competitors.

F. ECONOMIC OPPORTUNITY

Nowadays, a lot of people are fond of exploring and tasting various sweet, nutritious

fruit juices especially during occasions like fiestas and school events. So food industry is
significant as this will expand opportunities to the different firms in line with this industry.

For that reason, we are on the ball of establishing small enterprises with great confident to

produce better quality of fruity gulaman juice products.

G. MANAGEMENT TEAM DESCRIPTION

G.1 MARKETING DEPARTMENT

 Grace Agustin- Marketing Officer focused mainly on thethe practical

application and amangement of an organization’s marketing operation and

handles formulating, directing and coordinating marketing activities so as to

influence customers to choose the organization’s products over those

competitors.

 Mark Angelo Talaugon- Sales Executive contributes the yearly sales and

marketing place. The sales executive supports the manager in everyday

activity.

 Ronel Benlot- Assistant Sales Executive organizes sales visits, demonstrating

and presenting products.

G.2 FINANCE and PURCHASING DEPARTMENT

 Justine Mae Antipolo- Financial Manager is responsible for the financial health of an

organization. She will produce financial reports, direct investment activities, and

develop strategies and plans for the long term financial goals of the organization.

 Samuel Albios- Financial Assistant is responsible for preparing spreadsheets, reports

and proposals for the use of junior and senior financial manager.

G.3 HUMAN RESOURCE DEPARTMENT

  Dwight Lester Lopez- Human Resource Manager involved with recruitment,

training, career development, compensation and benefits, employee relations,

employment law, compliance, disciplinary and grievance issues, redundancies etc.

 Rhex Ian Balabad- Human Resource Assistant involved with nearly all programs and

a services that related to company’s human resource division. He is the one set

appointments and arrange meetings.

H. AMOUNT AND PURPOSE OF THE MONEY BEING REQUESTED (THE

OFFERING) IF SEEKING FINANCES

Along with the development is the expansion of opportunities, but investment is

essential and a life blood of a business. Grashas Gulaman de Frutas enterprise and its

constituents will be glad if you will take the opportunity to invest. This business will utilize

\raw materials and other equipment to generate quality products. An estimated of P700.00

will be necessitated in processing the business.

Section 2: INDUSTRY DESCRIPTION

A.1The Drinks Industry/ Food Industry

This business falls into refreshment Industry where it provides the unique delicious
taste of creamy fruity gulaman juice drink for everyone. Thus, it classifies as Food and
Beverages Industry.

Probiotics have been gaining popularity and in the future various food products such
as cakes, ice cream, sweets and drinks will have probiotics included in them. According to a
group discussion at SIAL MONTREAL 2009, consumer trends suggest that people are asking
for more choices in food, with less ingredients but better taste and quality. The research
indicates that consumers are trending towards: Convenience; Health & Wellness,
Sophistication (regional fusion) and pleasure/fun.

A.2 Ownership

The ownership status of the business will be sole proprietorship because it is easy to
start and it requires only small amount of capital. The control and management lies entirely to
the handle of team leader.

A.3 Our Position in the Industry

The business will be place in Gov. Nonito D. Llanos Sr. National High School, an
ideal market for this kind of unique drink business such as Grashas Gulaman de Frutas.
People in this area would enjoy the taste which is new for them and they can afford for it and
are willing to do so.

A.4 Industry Size

Global Natural Food and Drinks Market was valued at $79, 1.37 million in 2016, and
is estimate to reach $191, 937 million by 2023, growing at a CAGR of 13.7% from 2017 to
2023. Naturally, food and drinks are minimally processed and free of artificial sweeteners,
colors, flavors and additives like hydrogenated oils, stabilizers and emulsifiers. But there is
no certification or inspection system to ensure that the label is accurate. Nonetheless, this
market possesses high growth potential, owing to the fact that several food service providers,
such as restaurants, hotels are inclined towards providing healthy food and drinks to cater to
the needs of health-conscious consumers.
A.5 Growth Rate

Currently, consumer behavior is more inclined towards the health and wellnesses,
safety, social impact, and experience in their food purchasing decisions along with the
traditional values such as convenience, price, and taste. Thus, increase in emphasis on health
and wellness drives the growth of the global natural food and drinks market. Moreover, rise
in awareness for healthy food ingredients is expected to deliver the substantial growth
opportunity to industry players.

Section3. Target Customers

A. DEMOGRAPHIC VARIABLES

The target market of Grashas Gulaman de Frutas is the students of Gov. Nonito D.
Llanos Sr. National High School ages from 11 to 16 years old for the Junior High School and
16 and above for Senior High School department. Another target market is teachers of this
institution ages from 22 and above.

Gender

 Male and Female

Daily Allowance

 P10.00 and above for Junior High School

 P20.00 and above for Senior High School

B. PSYCHOLOGICAL VARIABLES (VALUES, ATTITUDES & FEARS)

Values- Our target market are individuals who are fond of exploring sweet, fruity and

jelly-cious taste of drinks.

Attitudes- Our target market are those who are fond of drinking gulaman juices

which is unique as we put slice apples or mangoes on it and those who can easily recognize

the nature of our products.

Fears- Some of the fears of Grashas Gulaman de Frutas include the expiration and the

pricing of the product.

Section 4: COMPETITOR ANALYSIS

A. WHO ARE YOUR COMPETITORS?

Our competitors will be all the businesses inside of the school, primarily; they offer

variety of foods and drinks.

B.WHAT PRODUCTS OR SERVICES DO THEY SELL?

For the drinks, they sell buko juice, buko ice candy and fruit shakes while for the

foods, they sell turon, Lumpia shanghai, pastil, mango float, ube chips, barbecue, sweet

banana turon,fishballs , and other foods available in canteen. In spite of many products

available in the market and hectic schedule, people want something healthy food and drinks.

C.WHAT IS THEIR PAST STRATEGIES?

Other competitors were established together with us, so we can’t distinguish yet their

past strategies. However, other competitors able to give discount when their customers

purchase more.

D.WHAT IS THEIR CURRENT STRATEGY/STRATEGIES?

Some of the competitors were able to introduce other products, just like what shake it

off did.

E. WHAT POTENTIAL THREATS DO YOUR COMPETITORS POSE?

The potential threats of our competitors are their stationary establishment just like

with the canteen because it will create comfort and hassle-free transaction.
F. WHAT POSSIBLE OPPORTUNITIES DO THEY MAKE AVAILABLE?

The possible opportunities we can gain are the fast selling of our product because we

sell it personally. Furthermore, by personal selling it is easy to gain loyalty.

G. WHAT IS EACH COMPETITORS MARKET SHARE?

 MARKET SHARES

Section 5: COMPANY DESCRIPTION

A.WHEN AND WHERE WAS THE BUSINESS STARTED?

The business started during the second semester of S.Y. 2019-2020. Specifically, on

January 14, 2020 at Gov. Nonito D. Llanos Sr. National High School.

B.WHAT IS THE HISTORY OF THE COMPANY?

 During the second semester of S.Y. 2019-2020 where in Entrepreneurship was

offered. All grade 12 students under the class of Mr. Aldrin Feb R. Alcasid were grouped

according to their preferred business.

C.WHAT IS BUSINESS OBJECTIVES?

The following are the objectives of Grashas Gulaman de Frutas:

 To provide good quality of Product and services.

 To generate new customers.

 To produce unique and exceptionable taste.

 To offer affordable and delicious gulaman.

 To give satisfaction to our dear customers.

D. WHAT CHANGES IN STRUCTURE AND/OR OWNERSHIP?

For the mean time, the structure of Grashas Gulaman de Frutas is not changing since

we are on the threshold of the business cycle. Its management is still the same. In terms of

ownership, Grashas Gulaman de Frutas ran as a corporation composed of 7 members.

Therefore, the members are its management and if the business is ready for expansion,

changes will occur.

E. IN WHAT STAGE OF DEVELOPMENT IS THE BUSINESS?

Currently, the business is at its initial stage. Here, we are able to garner materials

which are needed for the production of the products and to inform the consumers about the

nature and what our business all about.

F.WHAT HAS BEEN ACHIEVED TO DATE?

 The first operation of Grashas Gulaman de Frutas was successful and the management

applied some strategies that would uplift the business for its longer existence.

G.WHAT IS THE NATURE AND ACTIVITY OF THE BUSINESS?

The business is engage into refreshment industry. Refreshment industry produces

drinks, in particular ready to drink products. They may appear in numerous flavor

combinations and forms. Usually served chilled, they are a perfect refreshing treat enjoyed in

the hot and humid Filipino climate.

H.WHAT IS THE PRIMARY PRODUCT OR SERVICE?

The business primary products are Gulaman De Frutas. We choose to sell this fruit

juice product because it is new to the eyes of target customers, the students and teachers.

I.WHAT IS THE BUSINESS’ FORM OF GRASHAS GULAMAN DE FRUTAS

ORGANIZATION?

Currently, the business is a corporation form of organization.

Section 6: PRODUCT/SERVICE PLAN

A.WHAT MAKES YOUR PRODUCTS/SERVICES UNIQUE?

Our product is more delicate to the eyes and taste of our target customers be

cause it’s not just only gulaman, its innovative gulaman with different toppings of fruits

compare other gulaman which is very common to our palette or product which is gulaman de

frutas, allows our target market to explore and experience tasteless juice which is suitable to

their taste. We provide quality service by means of going importance and taking into

accounts the comments and suggestions of our customers for the betterment of our business
and for us to built good relationships with them. The raw materials that were used in making

this product were strictly chosen by our purchasing department.

B.WHAT IS/ARE THE METHOD/METHODS IN WHICH ITEMS ARE SOLD?

The methods that we used in selling our product are personal selling. We used this

method because were just on the threshold of business cycle. Through personal selling, we

can easily mingle with our customers and for us to gain loyal customers in the near future. In

selling, we used word of mouth in promoting our product and we also accepting orders from

our customers.

C.WHAT IS YOU’RE PRODUCTS BENEFITS TO THE CUSTOMER?

Our target market will benefit the following:

 Enhancing our business through serving quality products

 Enough and prompt service

 Valuing our customers

D.WHY CUSTOMERS WILL PURCHASE IT FROM YOUR BUSINESS?

Customers will purchase it from our business because our potential target market is

those individuals who shared common preference in juice products and has curiosity to a new

designed product. As far as our product will address their curiosity, then their money will not

be wasted.

E. WHAT IS THE PRICING POLICY OR STRATEGY USED?

We used Penetration Pricing and Competition-Based. Pricing Strategy-Penetration

pricing works best for brand new businesses like us looking for customers or for businesses

that are breaking into an existing, competitive market which the prices of products set
artificially low in order to gain market share. On the other hand, competition-based pricing

strategy where we can price our products slightly below our competition, the same as my

competition, or slightly above our competition. Moreover, this is one way to keep our pricing

dynamic.

Section 7: MARKETING PLAN

A. ECONOMIC ENVIRONMENT:

 What are the factors that affect your consumers purchasing power and spending

patterns:

The factor that affects the customer’s purchasing power includes price, availability of

product, allowance of students and the salary.

 What is the economic environment that you are operating in? Is it a growth,

recovery or recession?

The economic environment that we are functioning is an expanding economic environment.

This means, we can easily operate and grow based upon the profit and loyalty of the

customers. In the same way, if the business has the opportunity to raise then the management

is ready enough to take the opportunity.

 What is the current interest rate? Is it increasing or decreasing?

At its 12 December monetary policy meeting, the Central Bank of the Philippines (BSP) left

the overnight reverse repurchase facility (RRP) unchanged at 4.00%, as had been expected by

our panelists. Accordingly, the overnight deposit facility (ODF) and the overnight lending

facility (OLF) rates-which establish the floor and the ceiling of the interest rate corridor-were

maintained at 3.50% and 4.50%, respectively. The Bank’s decision follows to unwind some
of last year’s aggressive tightening. The Bank deemed its current monetary policy stance as

appropriate given within-target inflation expectations for 2020 and the favorable outlook for

the economy. Inflation rose to 1.3% in November (October: 0.8%), remaining below the

Bank’s target range of 3.0% plus or minus 1.0 percentage point. Even so, the Bank sees

inflation risks to be skewed to the upside for 2020, owing to the potential impact of tensions

in the Middle East on oil prices, as well as poor weather conditions and the outbreak of

African swine fever on food prices.

 WHAT IS THE CONSUMER CONFIDENCE LIKE?

With the growing economic environment, the customer will confidently spend their

money specially those who kept on exploring the juice products in order for them to

satisfy their needs and wants.

B. SOCIAL ENVIRONMENT

 What are the social and demographic trends?

Nowadays, the existence of trends in our society was driven by the demographic

variables- age, gender and purchasing power of the people. Presently, people are formed and

interested in exploring new things especially in terms of juice that would meet what they

want and need.

 Is the population aging?

No, the area of operation is young people.

 Are family structures changing?

 Since charges to the family have meant that there are more different types of family today

than even before. Family structures change from time to time: change to marriage, changes to

partnership and changes to children and families.

 Are there changes in the level of education?

The Philippine education system has been transformed from Basic Education Curriculum

to the new and adaptable education system around the world, the K-12 Curriculum. The new

curriculum enables the education system in our country to change for a period of time. This is

one of the changes in our society that needs to be understood for us to spot its significant.

C. TECHNICAL ENVIRONMENT

 What are the trends in your industry in terms of technology? Other industries?

Technology is essential in a business because this allows the firm to operate efficiently

and for the fast production of the products. In beverages industry, technology

representation like internet is a big help in gaining customers and persuading them to buy

the product. Also, internet is an easiest way to promote products artistically.

 How would the above trend affect your business?

The above trends have a great impact in our business. This can give us good impression and

customers will patronize the products that our business offered. In the world of technology,

adapting the rapid changes in our society can improve the business operation specially when

dealing with online transaction which involves internet, through internet there will be a fast

and ease transactions.

D. INDUSTRY ENVIRONMENT

 What are the trends in your industry?

In Beverage Industry, trends such as increased focus on help and wellness of the

consumers particularly millennial that are more health conscious, consumer interest in

drinks with high quality ingredients, and convenience like ready-to-drink (RTD) cold-

pressed juices.

 Is there a new entrant in the market?

New players in the food and beverage industry often start by selling directly to

consumers, mostly using online channels. Direct to consumer brands are often more

successful in capturing deep data on their target consumers which can be further used

to deliver personalized consumer experience, refine product strategy, and build long

term customer relationships.

 Has a substitute product been introduced?

There has a substitute product been introduced in the market since they are

already making beverage business that sell juice products around. This signifies

that under the beverage industry, there could be many other sweet juice products

that could dominate our own product. A few examples of alternative beverages are

sports drinks, energy drinks and plant-based waters.

E. COMPETITIVE ENVIRONMENT

 What are your competitors doing?

Our business counterpart also produces sweet fruit juice products and applying

strategies to uplift their business image. However, other competitors able to produce

products that is also satisfying.

  How many competitors do you have?

Currently, we have a lot of competitors namely; Shake It Off, Buko Ice Ice Baby and

other drinks that already sell in canteen.

 What is your advantage over your competitors?

Our advantages could be that the ability to produce quality product at a reasonable

price, to provide good and services and to be sensitive of what our customers need

and want.

F. POLITICAL ENVIRONMENT

 Is there a stable political system?

No, it is because nowadays, under the administration headed by President Duterte, his

administration plans to shift the political system into federalism. With this, it means

that many changes will occur especially into the business sector.

 Are there any license and regulations that you should be aware of?

Yes, we must obtain permits for us to operate our business legally. This is the

Barangay Clearance, DTI Business Name Registration Certificate, and SEC

Certificate of Registration, Mayor’s Business Permit and BIR Certificate of

Registration. However, we do not have all the permits to operate since we don’t have

a business establishment.

G. SWOT ANALYSIS

 Strengths

 Customers oriented

 Producing quality products

 Efficiency of production
  Business location is near to target and potential market.

 Weaknesses

 New to the market

 Lack of legal documents

 Spoilage of the product

 Opportunities

 The implementation of K+12 education level

 Weaknesses of our competitors, example unavailable products,

unattractive packaging, and minimal choices of different flavors.

 Events in school

 Threats

 Well-known broad business name of our competitors.

 New food businesses near our location

 Unsatisfied customer

H. MARKET SEGMENTATION

H.1 Geographic Segmentation:

 Location

Gov. Nonito D. Llanos Sr. National High School

 Population Size

More or less 800

 Climate
 Sunny and Rainy

H.2 Demographic Segmentation

Age

12 to 15 years old for Junior High School Department

16 years old and 18 for Senior High School Department

22 years old and above for teachers

Gender

Male and Female

Daily allowance

P10.00 and above for Junior High School Department

P20.00 and above for Senior High School Department

H.3. Psychographic Segmentation

 Social Class

All type of social class whether they belong to the high, middle or law class.

 Lifestyle

Nowadays, lifestyle of the target market has different patterns and based on

empirical observation, most of them loved sweets.

 Motivation
 The business is just establishing its name so we have to maintain the customer

oriented strategy to gain the trust and loyalty of our target market.

 Personality

The personality of our target market is that they like to drink juice such as our

product the Grashas Gulaman de Frutas. They like to spend money as long as

it satisfies them and be able to gain value.

H4. Behavioral Segmentation:

 Product Benefits

Our firm in offering products at affordable price without compromising

quality satisfaction they derived from our product is one of the benefits they

could get out of the money they are willingly to exchange.

 Brand Loyalty

Customer’s commitment to repurchase our product is somewhat a sign or

behavioral observation that they can be loyal to a specific brand or products if

they are satisfied with the products.

I. STRATEGIES AND TACTICS

a. Pricing strategy

In deciding the price of products, Grashas Gulaman de Frutas considered the amount

the customer is willing to pay in exchange of the product, the production expenses, and the

time and effort of the production team. Since the primary target market is the students and the

teachers, it gives the idea of selling product that anyone can afford. Grashas Gulaman de
Frutas makes use of the competition-based pricing strategy and penetration pricing strategy in

determining the product price.

Penetration pricing works best for brand new businesses like us looking for

customers or for businesses that are breaking into an existing, competitive market which the

prices of products set artificially low in order to gain market share. On the other hand,

competition-based pricing strategy where we can price our products slightly below our

competition, the same as my competition, or slightly above our competition. Moreover, this is

one way to keep our pricing dynamic.

b. Product strategy

 What level of quality and consistency does the product have:

Good quality of product is one tool that will give a high satisfactory rate to customers.

To attain good quality of products, raw materials, expiration date are monitored and

checked and maintaining the cleanliness in the production area.

 Do the design and/or service deliver what the customer values?

Yes, the products and the services we deliver is what our customer valued the most.

We make sure that the product we produce will meet the expectation of our target

customers and satisfy their needs.

C. PLACE STRATEGY

 What distribution channels and methods you will use?

Manufacturer to Consumer- We produce the products and sell directly to

consumers.

 If you will have a retail outlet and where it will be located?

 It will be located in a place where a lot of people situated so that it will easily be

noticed by our customers.

 Indicate the geographic area your product/service will be available

We have planned that it would be inside the school campus where our target market

located. But if there will be an opportunity, we will market our product outside the

school premises.

D. PROMOTION STRATEGY

 Personal selling and word of mouth

We use to sell our product meeting face-to-face with the customer. We promote the

product through our attitude, appearance and specialist product knowledge. We aim to

inform and encourage the customer. We share information’s or opinions about our

product, company, or brand, from one consumer to other.

Section 8: OPERATIONS AND DEVELOPMENT PLAN

Facility operations

 Includes all the services require to ensure a facility will do what is designed to do. A

facility operation typically includes the day to day operations of facilities. Our

business ensures that there will be good facilities to produce good and well-balanced

Gulaman juice. The place and space is suitable to the need of the management.
Purchasing Process

 Purchasing process is no different, it contains of a series of activities, linked by

information that drives the acquisition of materials or services. The marketing

department of our business strictly purchased the sets of inputs, carries out a

transformation or processing of those inputs and in turn produces an output.

Quality Control Methods

 Quality control methods is a procedure or set of procedures intended to ensure that a

manufactured product or services adheres to a defined set of quality criteria or meets

the requirements of the client or customer.

Section 9: MANAGEMENT TEAM

a. Describe the legal structure of your business (sole proprietorship, partnership

or cooperation)

The legal structure of our business is corporation. This structure composed of two or

more individual who share the profit and liabilities of the business.

b. Identify who holds what percentage of ownership in the company.

Since all of us invested in the same amount of money which is P100. 00. Then, all of

us have equal percentage in terms of ownership of the company.

c. Describe the main functional areas relevant to our business.

 Our businesses have different functional areas relevant to our business. These are

marketing department, financial department and human resource department.

  For the marketing department, it aims to reach the market by means of establishing

relationships towards the target consumers. It also plans to make organizational

strategies on how to achieve organization goals.

 For the financial department, it aims to prepare and analyze financial accounts by

considering all aspects that affect business’ success.

 For human resource department, it aims to plan and formulate strategies and policies

that help in the organizational success. It implements organizational strategies to be

followed by each employee in order to achieve organizational developments.

d. Identify who’s going to have responsibility for the different functional areas.

For the marketing department, the people assigned in different positions are the

following:

 Grace Agustin- Marketing Officer

 Mark Angelo Talaugon- Sales Executive

 Ronel Benlot- Assistant Sales Executive

For the financial department, the people assigned in different position are the following:

 Justine Mae Antipolo- Financial Manager

 Samuel Albios- Financial Assistant

For the human resource department the people assigned in different positions

are the following:

  Dwight Lester Lopez- Human Resource Manager

 Rhex Ian Balabad- Human Resource Assistant

c. Explain how each person’s skills will contribute to your business success.

For marketing department:

Marketing officer focused mainly on the practical application and management of an

organization’s marketing operation and handles formulating, directly and coordinating

marketing activities, so as to influenced customers to chose the organizations product over

those competitors.

Sales Executive contributes the yearly sales and marketing place. Also, sales

executive support the manager in everyday activity.

Assistant Sales Executive organize sales and marketing place. Also, sals executive

support the manager in everyday activity.

For Finance and purchase departments:

Financial Manager is responsible for the financial health of organizations. He will

produce financial reports, direct investment activities, and develop strategies and plans for the

long term financial goals of the organizations.

Financial Assistant is responsible for preparing spreadsheets, reports and proposals

for the use of junior and senior financial manager.

For human resource department:

Human Resource Manager involved with recruitment, training, career

developments, compensation and benefits employee relations, employment law, compliance,

disciplinary and grievance issues, redundancies etc.

 Human Resource Assistant involved with nearly all programs is a service that

related to company’s human resources division. He is the one who sets appointments and

arrange meetings.

f. Explain how your management team will be compensated.

Since the member of the group invested with an equal amount of money, therefore,

each member will be compensated with an equal amount of money coming from the total

profit of the business. For instance, if the gross sales of the business is

g. Describe any profit sharing plans that may apply.

The profit sharing plans that we will apply in the equal division of profit according to

our population. Since, our group composed of eleven numbers of members, the profits will be

divided by eleven as well.

Section10: Critical Risk

a. Identify and explain the potential risk that may be encountered by an investor

 Market demand risk

While the company believes that there will be customer demand for its product, there

is no assurance that there will be broad market acceptance of the company’s offering

if its competitors offer products which are preferred by prospective customer. In such

event, there may be material effects on the company’s result of operations and

financial condition and the company may not be able to achieve its goals.

 Failure Risk

Investments in startups are speculative and there companies often fail. While an

investment in a nature business where there is a track record of revenue and income,

the success of a start up often relies on the development of a new product or service
 that may or may not find a market. You should be able to afford and be prepared to

lose your investment.

 Funding risk

The company may require funds in excess of its existing each resource to fin

operating expenses develop new products, expand its marketing capabilities and

finance general and administrative activities. Due to market condition at the time the

company needs additional funding, it is possible that the company will be unable to

obtain additional funding when it needs it, or the term of any available funding may

be unfavorable. If the company is unable to obtain additional funding, it may not be

able to repay debts when they are or the new funding may excessively dilute existing

investors. If the company is unable to obtain additional funding as and when needed,

it could be forced to delay its development. Marketing and expansion efforts if it

continues to experience losses potentially cease operations.

 Growth risk

For a startup to succeed, it will need to expand significantly. There can be no

assurance that it will achieve this expansion. Expansion may place a significant strain

on the company’s management, operational and financial resource. To manager’s

growth, the company will be required to expand its finance, administrative and

operations staff. There can be no assurance that the company’s current and planned

personnel, system, procedures and controls will be adequate to support its future

operations. The company’s failure to manage growth effectively could have a material

adverse effect on its business, result of operations and financial condition.

 Competitor risk

The start-up may face competitors from other companies, some of which might

receive more funding than the start-up has. One or more of the company’s competitor
could offer services similar to those offered by the company at significantly lower

prices, which would cares downward pressure on the prices. The company would be

able change for its services. If this company is not able to change the prices it

anticipate changing for its service, there may be a material adverse effect on the

company’s result of operation and financial condition.

Section 11: OFFERINGS-Indicates to an investor is the following:

a. How much money is needed?

Since our business do not have a physical establishment, so we don’t need a

large amount of money. The business needs P700.00 for the first operations and in the

succeeding operation. The money will be taken from the profit of the first operation.

b. When will be the money needed?

Money is needed on the first operation

c. How the money will be need?

The money will be need for processing the things we need for the operations

such as the equipment, suppliers, ingredients and other things which serve as a

contingent that will arrive for producing and selling own products.

Section 12: EXIT STRATEGY

GRASHAS GULAMAN DE FRUTAS adapts the liquidation exit strategy.

Even life time entrepreneurs can decide that enough is enough. One often-overlooked

exit strategy is simply to shutdown, close the business doors and liquidate. For small

businesses like us specially those that are dependent on the performance of a single

individual, liquidation is sometimes the only option as there’s really nothing else to

sell.
Pros

 Simplicity

 The business can be wound up very quickly (depending on the sale of assets).

Cons

 Liquidation has the lowest return on investment to the owners. The only money from

a liquidation sale is from the disposal of assets such as land, equipment or inventory-

any goodwill value from client lists or other business relationship (which may be

substantial) is lost

 Other shareholders may be less than thrilled at how much you’re leaving on the table.
Section 13: APPENDICES

Appendix 1: Resume of Key Investors and Owners/Managers

Owner 1

Name: Grace Agustin

Civil Status: Single

Age: 18

Address: Balasiao, Kiblawan, Davao del Sur

Birthdate: October 23, 2001

Owner 2

Name: Justine Mae Antipolo

Civil Status: Single

Age: 17

Address: Pocaleel Kiblawan, Davao, del Sur

Birthdate: May 10, 2002

Owner 3

Name: Samuel Albios

Civil Status: Single

Age: 18

Address: Pasig Kiblawan, Davao del Sur

Owner 4

Name: Ronel Benlot

Civil Status: Single

Age: 18

Address: Cogon Bacaca Kiblawan, Davao del Sur

Owner 5

Name: Mark Angelo Talaugon

Civil Status: Single

Age: 18

Address: Pasig Kiblawan, Davao, del Sur

Owner 6

Name: Rhex Ian Balabad

Civil Status: Single

Age: 18

Address: Pocaleel Kiblawan, Davao, del Sur

Owner 7

Name: Dwight Lester Lopez

Civil Status: Single

Age: 18

Address: Litos Sulop Davao del Sur