Infant Jesus Academy

Russet St., Rancho Estate IV, Marikina City

SY 2019-2020

Siseedlan

A Feasibility Study in Partial Fulfillment of

the Requirements for Business Enterprise Simulation

Submitted by:

CARIÑO, Christine Joyce G.

Submitted to:

Ms. Mary Jazel Tomas

Letter of Acknowledgement
Doing, complying, and successfully accomplishing the feasibility study for the fulfillment of the requirement in
Business Enterprise Simulation took patience, determination, passion, hardwork, and effort. It is the proponent’s
responsibility to do her best to provide an exemplary output with every chapter of the study through her time
management and setting her priorities, both academic wise. The accomplishment that was made possible by the
proponent cannot be done alone but through the optimistic encouragement, advices, and prayers of the people
around me, I am proud and grateful that I was able to finish and accomplish the feasibility study. With that, I
want to express my sincerest gratitude to the people who strongly believes and supported me until I reached my
journey to completion.

First, I want to thank the Almighty Father for blessing me wisdom and strength to continue complying the
feasibility study. Without His power of helping and guiding, it would not be possible for me to successfully
accomplish this study.

Second, I want to show my gratitude to my father, Mr. Rodrigo B. Cariño, Jr. for motivating and supporting me,
as well as keeping in my mind that I can do all the challenges that comes in my way. Even if you are not
physically with me/ us, I still feel your love and guidance towards this success of mine.

Third, I want to thank my mother, Mrs. Melchora G. Cariño for always guiding and motivating me that I can
successfully accomplish the various tasks given to me such as this feasibility study; for always understanding
my pursuits and priorities in lined with completing every chapter of this study; and for always making me feel
loved and supported through my ups and downs.

Fourth, I want to show my gratefulness to my classmates and friends for joining me in this journey of mine.
They let me feel realize that I am not alone in this battle. Their continuous words of encouragement strengthen
my faith that I can successfully accomplish this feasibility study.

Lastly, I want to express my sincerest appreciation to my adviser, Ms. Mary Jazel Tomas for always believing in
my capabilities; for letting me realize that I can do all of the tasks given to me with a magnificent output; for
putting all extra efforts to fully support me in my present and future endeavors; and for the opportunity she has
given me to grow and nurture my talent and skills as early as doing the feasibility study individually.

Table of Contents

I. PROJECT BACKGROUND ……………………………………………………………………

A. INTRODUCTION………………………………………………………………………………..... 5

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 B. OVERVIEW OF BUSINESS………………………………………………………………………..

C. COMPANY IDENTITY…………………………………………………………………………….

C.1 Company/ Brand Name……………………………………………………………….... 6

C.2 Logo and its Rationale…………………………………………………………………… 6

D. COMPANY PHILOSOPHY……………………………………………………………………… 7

D.1 Vision…………………………………………………………………………………………. 7

D.2 Mission……………………………………………………………………………………….. 7

D.3 Goals…………………………………………………………………………………………. 7

D.4 Core Values………………………………………………………………………………… 7

II. DESCRIPTION OF THE PROJECT………………………………………………………………

A. IDENTIFICATION AND EXPLORATION OF THE

BUSINESS……………………………………9

B. DEFINE THE CHOSEN PROJECT SCENARIO………………………………………………... 13

B.1 Target Market Base and Value Proposition…………………………………………. 13

B.2 Type and Quality of Products or Services to be Marketed………………………. 14

B.3 General Business Model………………………………………………………………… 14

B.4 Technical Processes……………………………………………………………………… 15

B.5 Time Horizon……………………………………………………………………………….. 16

C. RELATIONSHIP TO THE SURROUNDING GEOGRAPHIC AREA……………………………

17

C.1 Accessibility/Visibility of Business……………………………………………………... 17

C.2 Proximity to Sales Generator Areas………………………………………………….. 18

C.3 Proximity to Suppliers……………………………………………………………………. 18

C.4 Economic and Social Impact on Local Communities…………………………… 19

C.5 Environmental Impact on Surrounding Area………………………………………. 20

III. MARKET

FEASIBILITY………………………………………………………………………….. 21

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 A. INDUSTRY DESCRIPTION……………………………………………………………………….

21

B. INDUSTRY COMPETITIVENESS…………………………………………………………………

22

C. MARKET POTENTIAL……………………………………………………………………………

23

D. ACCESS TO MARKET OUTLETS………………………………………………………………..

27

E. SALES PROJECTION…………………………………………………………………………… 27

IV. TECHNICAL FEASIBILITY………………………………………………………………………

30

A. FACILITY NEEDS…………………………………………………………………………………

30

B. SUITABILITY OF PRODUCTION TECHNOLOGY……………………………………………..

36

C. RAW MATERIALS………………………………………………………………….…………….

37

V. FINANCIAL FEASIBILITY…………………………………………………………….…………

38

A. ESTIMATE THE TOTAL CAPITAL REQUIREMENTS…………………………………….

………. 38

B. ESTIMATE EQUITY AND CREDIT NEEDS……………………………………………….……….

39

C. BUDGET EXPECTED COSTS AND RETURNS OF VARIOUS ALTERNATIVES………….

……. 39

VI. ORGANIZATIONAL FEASIBILITY………………………………………………………….

….. 43

A. BUSINESS STRUCTURE…………………………………………………………………………..

43

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 B. BUSINESS FOUNDER……………………………………………………………………………

44

Appendices………………………………………………………………………………………………….. 45

References……………………………………………………………………………………………………. 50

I. PROJECT BACKGROUND

In this chapter, the business’ overall introduction is presented and discussed. Additionally, the proponent’s
company profile is significantly discussed with a detailed description and explanation.

A. INTRODUCTION

The impacts and consequences of improper plastic disposal are now beginning to be felt around the world,
especially in the countries which are encompassed by Asia. As per Christopher Joyce in 2019, Asia has the
biggest source of plastic disposal with 8 million tons every year. Focusing on the Philippine context, a Global
Alliance for Incinerator Alternatives (GAIA) study, as written by Subido in 2019 showed that Filipinos generate
163 million of plastic waste daily. The data presented proved that the country’s current state and situation has a
problem in proper disposal of plastic. As a result, the environment is now being harmed because of the
hazardous substances present in plastics. According to European Chemicals Agency, plastics contain polyvinyl
chloride that harm a person’s health, as well as the environment. One evident circumstance on how toxic
pollutants in plastic damage the environment is through the pollution caused in land, water and air.

The decomposition of plastic is longer compared to other containers, taking 10 up to 20 years to

decompose, that is why to lessen the number of plastics being disposed every year and the harmful effects that it
brings, a solution can be to have an alternative container. One good example is the use of paper bag products as
containers or holders of different commodities. However, on the contrary, as per ReuseThisBag.com (2018),
ordinary paper bags only add to the environmental waste to the landfills of the country, as well as it contains and
consists of poor environmental credentials. As such, Christine Joyce G. Cariño, a grade 12 ABM student, was
inspired by the aforementioned concepts to pursue the idea of brown paper bags with embedded seeds to
promote proper waste management, reduce the environmental wastes in landfills and the number of plastics
being consumed. The idea of Ms. Cariño transpired from the advocacy of Silent Beads in the Philippines. Silent
Beads are plantable papers that grow into herbs after use to help the Earth to breathe. The advocacy of Silent

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Beads will urge Ms. Cariño to give opportunity to her fellow countrymen to be involve in the betterment of the
environment through her product.

B. OVERVIEW OF BUSINESS

Paper bags started way back in 1852 that serves as an alternative for plastics, however, it was not patronized
before due to the issue of durability, as per Canadian Plastics Industry Association in 2012. In the present time,
some local cities in the Philippines like Marikina City, uses paper bags instead of plastics to eliminate the
widespread of improper plastic disposal. As per Inquirer.net, the city of Marikina started to use paper bags in
November 2012 as a primary source of packaging for dry goods while still use plastic as secondary packaging
for wet goods. Likewise, the business owned by Christine Joyce Cariño aims to support the movement by
innovating her own paper bags and start her own company and brand, Siseedlan.

Siseedlan is considered as a business to business type of Philippine based company that entered the
manufacturing industry on November 2019 and established the “planting dreams, rooting hope” strategy. As the
strategy begins to make noise, different business establishments flown and patron the plantable brown paper
bags the company offers, and still counting.

Siseedlan is one of the pioneers of manufacturing brown paper bags embedded with seeds in the
Philippines, offering low cost but high-quality products suitable for packaging and container of different
commodities of various business establishments, grocery stores, fast food chains, and shopping malls to be
exact. Siseedlan currently manufactures plantable paper bags to only 1 city in Metro Manila, Philippines, the
city of Mandaluyong.

C. COMPANY IDENTITY

C.1 Company/brand name

Siseedlan is the brand name of the plantable brown paper bag of Christine Joyce Cariño. As per United
States Environmental Protection Agency, paper bags are considered containers as it is used for storage and
packaging of products such as food, medications, cosmetics etc. As such, the name of the product is inspired
from the Filipino term sisidlan, which simply means container. Ms. Cariño changed the spelling of the Filipino
word sisidlan as she included the word seed to emphasize its unique inclusion to the paper bag while showing
the alignment of the name with the product being offered.

C.2 Logo and its rationale

Figure 1.1 Siseedlan’s logo

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 For the logo, the background is color white to show its simplicity and purity, as simple as doing the right
thing for the environment, country, and fellow countrymen. The brown paper bag is placed at the middle to
show what the business has to offer. It has the background color of blue to show that the company and the
product itself can be trusted by Filipinos through enhanced service and pledge to continuously achieve its
mission. The seed’s presence alongside with the paper bag indicates that the product has seeds which will be
embedded for the availability of planting. Meanwhile, the symbol placed at the center of the paper bag
represents the advocacy and mission of the company, that is to strengthen and nurture the environment through
planting. The product’s brand name is also included to let the product be introduced to other business
establishments; however, seed replaced the letter I to indicate that it is the main highlight of the product. All the
main subjects such as the brown paper bag and brand name mentioned are enclosed in a circle of leaves or
wreath which implies that the product promotes environmental sustainability.

D. COMPANY PHILOSOPHY

D.1 Vision

The Siseedlan’s vision is to become one of the reputable and pioneer manufacturing industries to create
and build the best envirosafe paper bag products, to cause no unnecessary harm, and to be an instrument and
voice to transpire and implement solutions to environmental unsustainability in the Philippines.

D.2 Mission

Siseedlan company is enhanced to be the bridge to produce plantable paper bag products that aims to
promote an eco-friendlier environment and a healthier inhabitant for internal and external associates and
succeeding generations; to advocate responsibility through the involvement of God’s steward’s creation in
taking care of the environment.

D.3 Goals

To develop mutual trust among different business establishments, government, and customers.

Building good relationship to both internal and external parties will pave the way for the advocacy of
the company to be obtained.

Employ new technologies and monitoring progress.

Acquiring new set of machines and equipment will produce more quality-based and eco-friendly paper
bag products.

To guarantee continuous and consistent high environmental performance and objectives.

Assurance of Siseedlan’s advocacy in eliminating plastic disposal and promote environmental

sustainability.

D.4 Core values

Integrity

Build and earn relationship and trust for Siseedlan brand through moral and ethical demeanor.

Stewardship

Build tougher organization for the future through embodied responsible care for the community and
environment.

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Passion

Committed to produce and serve quality paper bag products with all heart and mind.

Drive

Provide dynamic platform through exploration and enhancement of creativity and skills among the
employees and the community.

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 II. DESCRIPTION OF THE PROJECT

In this chapter, the proponent introduces the main business plan and model that the company will follow. It
entails what the enterprise has to offer, its business operations, location, promotion, and price.

A. IDENTIFICATION AND EXPLORATION OF THE BUSINESS

For this part, three business models were proposed by the proponent and one was chosen or
suggested to be used by the adviser of this feasibility study.

The chosen business model that this feasibility study will follow is:

Business model # 1
The ecological impacts of improper plastic disposal in the Philippines in today’s generation gradually
and continuously harms the environment of the country as well as the living state of fellow Filipinos. In fact, a
GAIA study in 2019 stated that the country generates 163 million of plastics daily, leading and contributing to
serious damage of plastic wastes. As such, Christine Joyce G. Cariño, the founder and owner of Siseedlan
Company, will manufacture an alternative containers suitable for packaging dry commodities that are
appropriately created for various business establishments like grocery stores, shopping malls, and fast food
chains to help lessen the usage of hazardous plastics used as a bag for handling different variations of goods that
were purchased. In line with this, the proponent plans to build a factory wherein grocery stores, as well as other
various business enterprises can directly purchase from the said establishment. For the other P’s present in the
chosen business model of Ms. Cariño, bundle pricing and coordination with Silent Beads’ advocacy will be
included and implied as these two concepts are also considered factors that will shape and indicate the future
progress of the business.

The rampant and abusive usage of plastics by Filipinos nowadays gradually becomes one of the
hindrances as to why Philippines cannot achieve and have a stable environmental sustainability. In response to
this situation, launching and implementing the usage of paper containers and packaging in local cities in the
country will greatly help the environment to regain its natural wonder, just like the action of the city of
Marikina. Likewise, Christine Joyce G. Cariño, the founder and owner of SIseedlan company, will provide two
paper containers and packaging used to replace and eliminate the usage of hazardous plastics such as plantable
brown paper bags and paper meal boxes as chosen and approved by her adviser, Ms. Jazel Tomas. Pursuing the
aforementioned idea of alternative containers with embedded seeds will further promote proper waste
management, engage fellow countrymen in influencing others to take care of the environment, and most
especially, reduce the number of plastics being consumed in every cities of the country. This product of Ms.
Cariño will try to prosper a simple act of kindness and generosity through a simple product that will greatly
change the lives of every Filipinos and the environment soon.

Siseedlan is a manufacturing type of company established by Christine Joyce G. Cariño on 2019.

Similar with the concept of other manufacturing industries and the like, the company also has a physical factory
in the Philippines that is suitable to provide the best quality of service and production of plantable brown paper
bags and paper meal boxes in the country. As such, Siseedlan established its manufacturing factory at the city of
Marikina, alongside with other reputable and recognized business establishments such as Toyota and
Mcdonald’s. In fact, the city of Marikina’s location can provide businesses accessibility and easier
communication to market its products locally and internationally. Likewise, the owner of Siseedlan company
preferred to position her manufacturing factory at the aforementioned city to ensure strong connection between
local partners and customers.

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 Siseedlan company manufactures eco-friendly products such as plantable brown paper bags and paper
meal containers as it prospers to fulfill its vision and mission. In line with its context, the company will
introduce the product to various businesses, together with the public through the help of Silent Beads. Silent
Beads is an advocacy established in the Philippines which is motivated by helping the earth to breathe and be a
voice in the society. The company will coordinate with this advocacy to let everyone know and realize the
environmental damage caused by hazardous plastics. In addition, this movement will encourage every individual
to care about their fellow and the environment through planting.

Since Siseedlan company builds a manufacturing factory in the city of Marikina, the owner decides to
have a partnership with Transportify, a full-service logistics solution with advanced technology to effectively
distribute and deliver goods for businesses and individuals around Luzon. Due to this instance, the company
offers bundle pricing for clients as it will be sold in package or set of the products offered for a lower price.
Pursuing this kind of pricing strategy will allow the company to increase its profit by also providing its clients a
discount. This offer made by the Siseedlan company will considerably benefit the business establishment
clients as they can save money and at the same time help to restore and nurture the beauty of the environment,
as well as the smile of every Filipinos.

The indicated business model by Ms. Cariño which were chosen and approved by Ms. Jazel Tomas
stick to provide the envisioned products offered by her company, the plantable brown paper bags and paper
meal boxes. The other concepts mentioned which includes the manufacturing factory located in Marikina City,
coordination with the Silent Beads to promote the product, and the bundle pricing strategy will greatly help the
business to stand firm amidst the strong competition in the business industry as it is planned and executed in an
organized manner.

While the following business models were also proposed by the proponent for reference:

Business model # 2
Philippines is one of the countries in Asia who greatly contribute to the amount of plastic wastes being
consumed in every year, generating about 163 million of it daily, as per the study by GAIA in 2019. To reduce
the damage caused by hazardous plastics, the company owned by Christine Joyce G. Cariño will add another
alternative container aside from plantable brown paper bags that are originally and mainly being manufactured
for business enterprises, especially for grocery stores. This new product of hers will be convenient as it can cater
wet and dry commodities. However, this product will not be available for selling at the factory, it will be
available online through Facebook and with the help of Silent Beads. This time, the company will offer the new
product with the use of psychological pricing. The owner believed that these factors would form a strong stand
firm in correlation with the business’ success.

Before, Filipinos used to make use of plastic bags as means of packaging and container of
commodities. However, due to environmental unsustainability in the modern world, there is a sudden demand in
the usage of reusable grocery bags. As such, Siseedlan company will add reusable grocery bags which can also
be planted after 5 consumption or usage. Pursuing and launching the idea of reusable bags can help the
environment by saving trees, less litter, and reduce greenhouse gas emissions. This idea of the proponent will
surely engage the business industry, as well as the general public in realizing the advantageous benefits and
effects of acquiring this kind of product.

The impact of the digital media in today’s context greatly influence the way an individual think and
reacts. The usage of online platforms in the current time can be one of the most effective tools used in
disseminating information to others, even advertising products. As such, Siseedlan company will have a
Facebook page and website for the availability of reusable grocery bags to be purchased by the target market:
grocery stores, and the consuming market: other business establishments and general public. Through this, the
product can be easily seen and located by anyone who wish to buy and help the environment bring back its

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natural beauty. This preferred position or location of the product by Ms. Cariño will create a strong connection
and unity among Filipinos.

Siseedlan company manufactures eco-friendly products such as reusable grocery bags as it prospers to
fulfill its vision and mission. In line with its context, the company will introduce the product to various
businesses, together with the public through the help of Silent Beads. Silent Beads is an advocacy established in
the Philippines which is motivated by helping the earth to breathe and be a voice in the society. The company
will coordinate with this advocacy to let everyone know and realize the environmental damage caused by
hazardous plastics. In addition, this movement will encourage every individual to care about their fellow and the
environment through planting.

The new product of Siseedlan company which is the reusable grocery bag is priced a bit higher
compared to plantable brown paper bag products as the item is to be sold per piece. In response to the
“expensive” thinking of the consuming market and business establishments, the owner plans to use and offer
psychological pricing for the aforementioned product. This kind of pricing strategy designed by the Siseedlan
company can attract clients while letting them notice and realize that the product is priced low. The proponent
believed that through this pricing strategy, the business can survive through the increased customers demand
with the product the company offers.

The second business model proposed by Ms. Cariño adds reusable grocery bags from the original
product produced and offered by her company that can only be sold online using psychological pricing. This
product will be introduced in partnership with the advocacy of Silent Beads in the Philippines. The concepts
mentioned in this business model will help the company shape its future endeavors as it is planned and executed
systematically.

Business model # 3
In today’s context, plastic is one of the country’s top pollutants of canals, rivers, and other waterways,
as per Tacio in 2018. In fact, Styrofoam are considered one of the plastic pollutants that greatly contributes to
the plastic problem and pollution in the country as it is being used by other companies such as fast food chains
that serves as a container for their meals. To lessen the plastic problem brought by fast food chains, Christine
Joyce G. Cariño, the owner of Siseedlan company, plans to add plantable paper meal boxes or containers ideal
for fast food restaurants. This time, the owner decides to have a distribution channel to further expand the
availability of the new product with the help of print materials and radio advertisements. Meanwhile, the new
product is to be sold using penetration pricing strategy to achieve the company’s objectives. Tis third model of
Ms. Cariño will surely help the business to grow and further developed as years goes by.

Other business establishments such as fast food chains way back then used styro meal containers as lid
for meals. However, some concerned cities and provinces such as the city of Marikina and the province of
Batangas banned the usage of plastics such as Styrofoam as container in 2012 to help lessen the wide-ranging
problem and pollution prohibited by plastics in the country. Likewise, Ms. Cariño, the founder and owner of
Siseedlan company, will add another product that will be beneficial for her country, fellow countrymen, and the
environment, that is the plantable paper meal container. This new product of hers is specifically designed for
fast food restaurants who still manage to use plastic containers despite of the problem it brings to the country.
Pursuing this kind of idea and product will help and influence fast food restaurants, as well as other businesses
to switch to an alternative that in return, will greatly change and affect the environment in a positive way.

Since the new product of Siseedlan company which is the plantable paper meal boxes or containers are
significantly designed for fast food restaurants, the owner decides to have a distribution channel for the
availability of the products to prosper. To be specific, Ms. Cariño will use indirect channel that involves retailers
that will sell her new products to the market. Through this, convenience among clients will thrive as each one of

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them may opt to purchase and get the product directly from the wide-ranging retailers of Siseedlan company.
This preferred position or location of having distribution channel by the owner will create a strong connection
and ease of communication among clients, thus, leading to one nation with similar goal, that is to bring back the
beauty of the environment through minimized usage of plastic containers.

Siseedlan company is committed to serve with passion to all its clients, target market, and consuming
market. As such, the company adds to produce and manufacture plantable paper meal boxes or containers which
will be introduced through print materials like poster or billboard and brochures, as well as radio
advertisements. Since the new product is to be distributed and be available through indirect distribution channel,
retailers to be exact, print materials can be one of the strategies to use as anyone can see and notice the
righteousness contained of the product. In the similar context, brochures can contain information that are
necessary for the target market and the consuming market. Moving on to the next idea of Ms. Cariño,
introducing the new product through radio advertisement can widely reach audience as it also used timely
message delivery to present the said product.

Siseedlan company produces and manufactures eco-friendly products that are affordable in nature. The
company wants to thrive environmental sustainability in the Philippines through its products and not much on
the context of profit maximization. Likewise, the owner decides to use economy pricing strategy for her new
products which is the plantable paper meal container. The concept of economy pricing starts and is consistent of
having low price among the products involved. Due to this instance, the Siseedlan company’s owner wants to
practice and establish this kind of pricing strategy as it will help the company to continuously survive despite
the menace of competitors. As what mentioned earlier, the company is not that after gaining profit, rather to help
and prosper environmental matters.

The third business model made and proposed by Ms. Cariño wants to eradicate the usage of styro
plastics as it continuously causes harm in the environment and in the country. Through her plantable paper meal
container, a business enterprise can help in lessening the produced hazardous waste of the public in general.
Having it distributed by channels or intermediaries will have it be known in several places and by various
market with also the use of print materials and radio advertisement. In addition, pricing it consistently in a lower
value may get and inherit clients from the target market and or the consuming market.

B. DEFINE THE CHOSEN PROJECT SCENARIO

B.1 Target customer base and Value proposition

In the context of the modern world, the amount and usage of plastics and its huge contribution to the
country’s waste problems gradually and continuously becomes rampant. In fact, companies such as fast food
corporations nobly contribute to the improper plastic disposal of the Philippines as it uses plastics for packaging
commodities, as per Schleeter (2018) of the Green Peace movement. To comprehend with the given
circumstance, Christine Joyce G. Cariño will establish Siseedlan company, a manufacturing business industry
that is formulated to originally provide and manufacture plantable brown paper bags, however, the essence of
plantable paper meal boxes paved way for the owner to include it in the products offered of the company to help
reduce the amount of plastic packaging by leading companies that results in a huge plastic pollution of the
country. The products produced and manufactured by the Siseedlan company are significantly intended and
designed for well-established businesses or companies in the Philippines, such as shopping malls- SM, Ayala,
and Robinsons; supermarkets-SM Savemore and Hypermarket, Puregold, Shopwise, and S&R; and fast food
chains- Jollibee, Mcdonald’s, Chowking, and Mang Inasal . The aforementioned companies are suitable for the
target market or clients of Ms. Cariño’s company as she targets businesses who has an ample number of loyal
customers, has a good background and reputation in the wide context of the business industry, true in pursuing
its mission, and are socially accountable and responsible for their own actions.

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 Siseedlan company, designed and owned by Christine Joyce G. Cariño, is a Filipino-based
manufacturing business that aims to provide and manufacture an alternative packaging and container suitable to
reduce the amount of plastics being used and consumed while adding up beneficial advantages and effects in the
environment of the Philippines. The products that will be manufactured by the company are brown paper bags
with embedded wild plant seeds and plantable paper meal boxes or containers ideally and mainly created for
packing foods or meals of the fast food industry. Above all the mentioned concepts related to Siseedlan
company, the business and its owner, Ms. Cariño also established the “planting dreams, rooting hopes” strategy
that serves as the company’s greatest asset and competitive advantage towards its competitors, established or
not. “Planting dreams, rooting hopes” strategy or policy greatly reflects the mission and advocacy of the
company, that is to promote an eco-friendlier environment through the widespread usage of plantable paper
packaging. From the products the company will offer, the distinct competitive advantage can be easily seen as
the company owned by Ms. Cariño will be the first ever manufacturing business establishment that will produce
and release plantable paper container for well-established companies in the Philippines. Comparing the
aforementioned products manufactured and offered by the Siseedlan company to the leading and established
manufacturing business of paper bags, the business has a purpose to lead the country to the right path and bring
back its beauty and healthy pace with just a simple means of widespread usage of manufactured products of the
company.

B.2 Type and quality of product(s) or service(s) to be marketed

Siseedlan company is a manufacturing type of business that manufactures and produces an alternative
packaging suitable for plastic replacement. The products offered by the company are as follows:

Siseedlan

-Siseedlan is a brown paper bag embedded with seeds that serves as an alternative for plastic containers of dry
commodities. Since the product is embedded with seeds, it can be planted after consumption or usage.

Papereed

- Papereed is a plantable paper meal boxes or containers that serves as an alternative packaging for food or
meals available in leading and well-established fast food chains in the Philippines.

B.3 General business model

Since Siseedlan company owned and established by Christine Joyce G. Cariño enters the
manufacturing industry, the company will have its physical store that will be suitable for the service and
production of best quality products offered by the business such as plantable brown paper bags and paper meal
containers. As part of the communication and distribution policy or strategy of the company in relation to the
widespread availability of the products offered, the owner decided and considered to team up with Transportify
as her logistics partner, the Manila’s number one delivery solution. According to Transportify’s official website,
it is considered a full-service logistics solution with advanced technology to deliver goods for businesses and
individuals around Luzon. As Siseedlan company only starts small in providing its products to every cities and
provinces in the Philippines, the logistics partner chosen by Ms. Cariño is significantly suitable for her business
as she first plans to open the availability of her products in Metro Manila and CALABARZON, perfectly right
for the Transportify’s pledged service.

Effectively communicating products or services to the designated target market will increase the
company’s good reputation, gain loyal clients, and most significantly, generate high sales and revenue.
Likewise, Siseedlan company will plan to introduce and efficiently communicate its products to various
businesses, especially its target market such as supermarkets, shopping malls, and fast food chains through the
help of the Silent Beads movement. Silent Beads is an advocacy established in the Philippines which is
motivated by helping the earth to breathe and be a voice in the society. The company will coordinate with this
advocacy to effectively introduce the true mission and value that reflects in each product of the Siseedlan
company that aims to impose positive connotation not just with its target market, but rather with each business
enterprise established in the Philippines. Additionally, this movement will encourage every individual to care

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about their fellow and the environment through planting. Through the aforementioned ideas related to the
company’s effective communication, the business by Ms. Cariño will generate profit as it contributes beneficial
advantage not just for the sake of the environment of the Philippines, rather for the businesses who will acquire
the products as well.

B.4 Technical processes

Since Siseedlan company is a manufacturing business that opts to manufacture and produce plantable
containers such as paper bags and paper meal boxes, its physical or manufacturing factory will be established
and located at the city of Marikina , alongside with other reputable and recognized brands such as Toyota and
Mcdonald’s. The owner of the company, Ms. Cariño, chose the city of Marikina to build her advocacy as its
location can provide businesses accessibility and easier communication to market its products locally and
internationally, making a strong connection between local partners and business clients. Focusing on the
physical or manufacturing factory of the company, the owner decides that her business will first start small,
thus, having and acquiring a floor area of 200 sqm to begin with her advocacy as a business-minded individual
and entrepreneur.

The Siseedlan company will produce and manufacture alternative container of plastics such as
plantable brown paper bags and paper meal boxes ideally created and suitable for its target market-
supermarkets, shopping malls, and fast food chains, as well as the other consuming market. For the
aforementioned products to be formed, produced, and manufactured, various inputs and raw materials are
needed in order to produce the true advocacy and meaning of each product to its clients while benefitting the
environment of the Philippines.

The raw materials needed to produce each product are as follows:

Siseedlan

Raw Materials Purpose

 Recycled Papers It is the main material used to produce the brown

paper bag of the company.
 Seed It is the material used to make the brown paper bag
available for planting.

Papereed

Raw Materials Purpose

 Paper It is a lightweight material that serves as the

foundation or basis of the paper meal box.
 Cardboard It serves as a secondary material of the product to
make it thicker.
 Seed It is the competitive advantage and additional
material of the product that makes it available for
planting.

The equipment that will be needed to produce the products offered by the Siseedlan Companny
are as follows:

Page | 14
 Machine Purpose
 Paper bag making machine It serves as the equipment used to quickly produce a
high-quality product offered by the company such as
the Siseedlan and Papereed.

B.5 Time horizon

Figure 2.1 GANTT chart

Figure 2.2 GANTT chart

C. RELATIONSHIP TO THE SURROUNDING GEOGRAPHIC AREA

C.1 Accessibility/Visibility of Business

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 To successfully and effectively produce and manufacture plantable paper containers, Siseedlan
company will have a physical manufacturing factory that will be rented at Gil Fernando Ave. Concepcion Uno,
Marikina City. It is a 200 sqm space suitable for the small business operation of Ms. Cariño, the founder and
owner of the company. To further understand the details of the physical manufacturing factory of the Siseedlan
company and its location, refer to figure 2.3 and 2.4.

Figure 2.3 The company’s inside and outside rented space for

its small business operation in Marikina City

Figure 2.4 The satellite view and image of the company’s rented space,

together with other target business establishments

C.2 Proximity to Sales Generators Areas

Siseedlan is a Filipino manufacturing company that is entitled to provide quality-based plantable paper
bag products suitable for dry commodities and an alternative packaging for meal products of various well-
established fast food chains. For the company to achieve its mission, a physical manufacturing factory located in

Page | 16
the city of Marikina will help the enterprise to further nurture and prosper its operations of providing plantable
paper containers and packaging to its target market, as well as the common market. Originally, Ms. Cariño, the
owner of the company, planned to locate its manufacturing factory in the province of Laguna, however, upon
further consultation and background research, the owner decided to place its physical store in Metro Manila.
The owner now chose the city of Marikina to build and establish her advocacy as the location now emerged as a
veritable city for business accessibility and easier communication to introduce products to well-established
amenities. Above all, the city of Markina is somehow nearby with the city of Pasig where Transportify, the
logistics courier of the company is mainly located.

As the company now pursues the warehouse in the city of Marikina, the location did not fail the
establishment as some of its target market are alongside with the rented area. As seen in the figure 2.4 or the
satellite map of the place, the target market of the company such as the Robinsons Supermarket, Bluewave Mall,
fast food chains such as KFC and Macdonald’s, as well as the Marikina Public Wet and Dry market, which can
also benefit from the products offered by the company. Additionally, well-established companies can also be
visible in the location of the amenity that will serve as landmarks and these are as follows: Toyota Marikina and
Marikina Valley Medical Center. In this sense, it can be one living proof that the company chose the right
location as some of its target clients are near with the physical store, making it accessible and communicable for
both business establishments.

C.3 Proximity to Suppliers

Siseedlan company is a Filipino manufacturing amenity of plantable paper containers and paper meal
boxes that strives to drive innovation while withstanding and considering the environment at stake. To
successfully and effectively produce plantable paper products, the materials needed will be available with the
help of the suppliers. Through the aforementioned distributor, convenience can be seen in the perspective of the
company as it can purchase raw materials in bulk for a low cost. As such, the suppliers of raw materials that are
needed to produce the plantable paper bag and paper meal boxes are as follows:

Wild Plants Seeds Paper Scraps

Cainta Plant Nursery J.P Junk Shop

#51 Nursery Road, Brgy. San Roque, Cainta, Rizal
(02)8655-0143; (02)8655-9020 #17 Candazo Street, Concepcion Uno, Marikina City

toyalfonsonursery@gmail.com 09216755425

The utilities that Siseedlan company will use in lined with its effective operations are as follows:

Electricity Water Internet

MERALCO Manila Water PLDT

C.4 Economic and Social Impact on Local Communities

Small business firms opt to give back to its respective local communities through increase in growth of
economic and social benefits. Likewise, Siseedlan company tends to offer and give a more diverse experiences
and knowledge to the general public while benefiting the economic and social state of the people and the area at

Page | 17
stake. To name a few, here are some of the economic and social impact of the Siseedlan company on local
communities:

Economic

Contribute and Bring Growth and Innovation to the Local Community

Siseedlan company, just like any other business, need to stand out from its competitors in order to survive. Due
to this instance, the owner decided to produce and introduce a product that will be beneficial for the local
community at stake since the outgrowing issue in plastic usage continuously becoming a hindrance towards
achieving a healthy environment. In this sense, the amenity serves a legitimate need in the community as the
rampant usage of plastics should gradually be eliminated. Through this, the company strives to be unique and
innovative, thus resulting to a healthy marketplace and well-served consumers.

New Employment Opportunities

Siseedlan company will be job creators for the local community of the city of Mandaluyong and other nearby
cities. Acquiring and supporting local businesses such as the Siseedlan owned by Ms. Cariño will provide ample
opportunities for people who may not be employable by well-established corporations. In lined with this and as
part of the company’s mission of engaging its employees, the amenity tends to attract new talent from its
personnel or the local community outside that can invent or implement new solutions for the betterment of the
Siseedlan company.

Contribute to Local Government through Tax

Siseedlan company, when patronized by its target market and consuming market, will significantly give the
money back to its local community. If a thriving company owned by Ms. Cariño generates high levels of
revenue, the business will pay higher taxes, resulting to more focused and improved projects that will be
beneficial for the development and betterment of the community and the area.

Social

Organize Tree-Planting Event

Siseedlan company’s community engagement involves corporate social responsibility that becomes one of the
key pillars about the concern with the workplace, the marketplace, and most specially, the environment. Since
Siseedlan company’s products entails seeds which can be planted after consumption, organizing tree-planting
event can be one of the business’ involvement in community-based CSR that lets the mission of the product
shine-out and be practiced.

Support Local Movements and Advocacies

As part of Siseedlan’s community involvement, the company owned by Ms. Cariño decides to support local
movements and advocacies since the inspiration of her business started with a movement called Silent Beads.
Through this circumstance, it lets the amenity to use its expertise through its products, as well as show the
human face of the business. Additionally, opportunities will pave way as the company will get to be involved in
a meaningful pace of the advocacy while engaging the community to participate and be part of the change.

C.5 Environmental Impact on Surrounding Area

The outgrowing problem of improper plastic disposal became one of the inspirations as to why
Siseedlan is created. As mentioned in the company’s philosophy, the amenity is designed to be a good role
model for other business establishments that cannot really understand the problem the country is currently and
continuously facing. To effectively accomplish the philosophy, as part of Siseedlan’s environmental

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responsibility, it is the company’s duty to bring back the beauty and health of the environment while reducing
the intensifying problem of the Philippines through its products offered. To name a few of the Siseedlan’s
environmental responsibility towards its designated area, refer to the three impacts mentioned below:

Reduce Plastic Bag Consumption

To effectively fulfill the stated company philosophy of Siseedlan, helping and advocating the city to reduce
plastic consumption through the company’s products will gradually increase the environmental sustainability of
the area, and later, bringing the advocacy and movement to nearby places in Metro Manila. The products
produced by Ms. Cariño’s company will help the general public and business establishments to consider the
environment before pursuing ideas and solutions to avoid suffering and repentance in the future.

Plantable Paper Bag as means of Planting and Growing Endangered Species of Trees

Since Siseedlan opt to provide and manufacture paper bag products embedded with seeds, it can be a means to
introduce, promote, and advocate different endangered species of trees that can be used to gain back the beauty
of the environment of the Philippines. Through this, one can be engaged to take a step in leading the city
towards a healthy environment and a better place to live in.

Engaging Marikina City Residents on Proper Waste Management

Since the concept of Siseedlan is merely about plantable papers, residents of the city of Marikina will be taught
of proper elimination of plastic containers as each one of them are now engaged in using paper bags as
containers and packaging.

III. MARKET FEASIBILITY

In this chapter, the company’s industry information and possible competition is introduced and explained. It
also entails the amenity’s marketing potential for its business operation, as well as the table of finances that the
company needs in order to start and operate its business purposes.

A. INDUSTRY DESCRIPTION
The environmental health and economic costs of plastic bags are widely known and unchallenged, as per
Global Alliance for Incinerator Alternatives or GAIA. These containers or packaging block drainages that cause
flood, a blight in waterways and public spaces, and most specially, it significantly contributes to the climate
change of a certain country such as the Philippines. Due to this circumstance, Christine Joyce G. Cariño made it
as an inspiration to pledge an action that will cure the unwell environmental state of her country, making it
possible to come up and produce the idea of her proposed company, the Siseedlan. Siseedlan is a Filipino
manufacturing company of plantable paper bags suitable as a definite replacement for plastic bag containers and
packaging. Since the company produces and manufactures paper bag as a means of container and packaging, it
is considered and belong with the packaging industry, particularly the paper-based packaging of the Philippine
business commerce. In fact, one of the purposes and benefits of acquiring this kind of industry will stand as a
good role model for different business amenities to practice eco-conscious production that results in less toxic
waste materials directed in the country’s environment.

As per the industry analysis of the business plan of Parsekar in 2016, due to the legislation ban towards
various forms of plastic bags as means of container and packaging, a huge opportunity for the substitute such as
paper bags has cropped up and emerged. Due to the feature of the alternative container and packaging, the
environmental state of a country can gradually be sustainable due to less toxins and chemicals contained by

Page | 19
paper bags. Focusing on Philippine context, as the country’s cities and municipalities, including businesses and
the general public also have acknowledged the negative and harmful effects of reliance on plastic bag
containers, leading to acceptance of the aforementioned factors at stake to mitigate the usage and consumption
of hazardous plastic bags. Currently, as per GAIA, there are at least 20 cities and provinces in the country that
implements a policy to regulate the use of plastic bags. As this circumstance continuously grows and take-off,
opportunities for packaging industry, specifically paper-based packaging opened its doors widely since the
demand for the alternative container or packaging gradually increases as time goes by. In fact, BusinessMirror
journal stated that as of August 2019, the Philippines’ packaging industry is currently bracing itself for changes
as it prepares to face the challenges of sustainability.

As the Philippine economy is doing well as of the current time, the government also embarked on an
aggressive move to improve doing business while supporting the MSME (micro, small and medium-sized
enterprises), as per Buñag in 2019. In today’s point in time, local companies have now placed sustainability as
well as the environment among the top priorities to retrieve and reduce post-consumption packaging waste.
Likewise, Siseedlan’s main agenda is to address the problems of environmental sustainability of the Philippines
through introducing and promoting its plantable paper bag product to the general public. In this sense, the
company is in lined with the government’s current proposition towards the business commerce of the country.
As early as of today’s period, the scheme is being practiced withstanding the environmental sustainability and
ongoing process of improvements for future sake.

Talking about the Philippine government and business amenities as of 2012, considering on acquiring
environment-friendly alternative containers and packaging continuously increase its mandate up until the future
state, which is most probably the recent year of 2019 and still counting. As of March 2019, by Market Watch
blog, paper bags are now commonly used as a container and packaging, thus, it will become a vital component
of modern lifestyle that is projected to create substantial market in the coming years due to its eco-friendly
nature. Meanwhile, Eurosac also claimed that paper bags are considered part of the sustainable future as it
provides advantageous benefits for the environment of a country. With these aforementioned future state of
paper bags, businesses with this kind of industry will venture and drive further improvements that leads to
survival, as well as strive to provide best quality of paper products suitable for public needs and demand, and for
the environmental status of a country.

As per the Italian National Association of Graphic Industries in 2018, paper bags are considered as a
sustainable and efficient packaging of the future as it contributes to fight the worsening case and condition of
climate change in various countries such as the Philippine archipelago. Due to this instance, business
establishments and the public are now being alarmed by the strong force and impact of hazardous containers
towards a country’s environmental health. In this sense, consumers now prefer paper bags over plastic bags up
until the future state, as per Future Market Insights in 2019. As such, Siseedlan, through the paper-based
packaging industry, will drive an innovation of plantable paper bag container suitable for commodity
companion. The company will be an essential commerce as it will bring and uphold convincing environmental
benefits while compromising the government’s agenda and public demand for the well-being of the Philippine
environment.

B. INDUSTRY COMPETITIVENESS
In the Philippine context, the archipelago contagiously acquires an unmannered practice towards the usage
and consumption of harmful packaging and containers such as plastics. In fact, as per Perez (2019) of eco
warrior blog, the Filipino citizens generate and consume about 300 million tons of plastics every year and these
products are not disposed properly. As such, focusing on the Philippines' current business industry and state, the
aforementioned instance gradually leads every business enterprise to adopt and embrace an environment-
friendly product, either in a simple packaging or the product itself that they seem to offer to the public, that will
later drive force in regaining the beauty and growth of the country's environment. Unfortunately, not all business
enterprise affords to take risk and chance in changing a clearer and better perspective towards themselves and of
their fellow constituents.

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 As the aforementioned circumstance goes, the Philippines' business market comes off with an enumerable
companies and industries who significantly practice the green way. To name a few, Greenpak Philippines and
Swisspac Philippines are included in the list of business firms and/or industries who exercise the outgrowing
power of the green way. Greenpak Philippines offers and sells plain white, generic, and customized paper
packaging and container suitable for food products. On the other hand, Swisspac Philippines manufactures
various kinds of paper bag containers made from environmental-friendly materials to continuously envision and
empower their manufacturing expertise. Through the compostable products manufactured and offered by the
two business enterprise mentioned, as well as other list of business establishments who practice the green way,
it will provide a certain country’s environment, society, and livelihood with nurturing nutrients that is needed in
order to grow and prosper, and most significantly, reduce the amount of waste directed to landfill.

In the current state of the Philippines, the paper packaging industry begins to fulfill an eco-friendly
mission to withstand, conquer, and provide help to various outgrowing business firms who are still engage in
plastic bag as means of packaging and container. As the recent member and part of the paper packaging
industry, Siseedlan company prospers to practice the production and manufacture of environmental-friendly
packaging and containers through a unique set-up--- its plantable paper bags and food containers. This distinct
trait and competitiveness of the company will be a strong bridge that will lead in achieving their pledged
mission and goals to the clients, general public, and the company itself. Stating the context of imperfect
competition under the market competition of business, Siseedlan company will be characterized by gaining an
ability to differentiate its products over its few competitors. However, upon having a stout competitive
advantage that will be the greatest asset of the company, as well as few competitors, Siseedlan opts to indirectly
compete with the aforementioned established business firms, the Greenpak Philippines and Swisspac
Philippines since the company owned by Ms. Cariño is just new to the market. Directly competing with
established business amenities will lead or tend the company to acquire less consuming market and an
established reputation. Due to the aforementioned instances, there are some barriers to entry that the company
may face and encounter: Target clients of Siseedlan are already loyal to reputable business firms as they built an
established connection and good relationship status, as well as financial resources that is needed for advertising
the products offered by the company.

Focusing on the context of pricing in the business field, the perception of price differs based on the
perspective from which it is being viewed. As the target customers are considered one of the important factors
of business or industries like the Siseedlan company, their point of view matters. As per Lumen, centering the
customer’s view, several criteria are being used to determine how much they are willing to spend in satisfying
their needs. Ideally, target market and consuming market would like to pay as little as possible in well-
established business entities. Likewise, through the information stated, Siseedlan company owned by Ms.
Cariño will use the common approach of setting-up the price according to its competitors. Through the
competitive pricing strategy of the amenity, it will certify and cover the business’ production costs, as well as
bids suitable profit. The price that the company will pursue is almost the same with its competitors, however,
Siseedlan’s product has something special to withstand and offer as it comes in a plantable set-up, which means
that the products offered are produced and created using the green way practice.

C. MARKET POTENTIAL

Siseedlan company is a Filipino manufacturing amenity of plantable paper containers that will serve as
a better and beneficial alternative for plastic bags. For availability and easier access of communication, Ms.
Cariño, the owner of the company, together with its internal marketing group, decides to have a website created
and established for publicizing the products offered; to establish strong connection and relationship, as well as
acquire and build good reputation; and to accomplish the driven passion and mission of the company. Using the
link https://imchristinejoyce.wixsite.com/siseedlanph, one may access and look after the products offered by
Siseedlan, as well as communicate for further inquiries.

Page | 21
 Figure 3.1 Siseedlan’s Official Home Page

Figure 3.1 shows the official webpage design of Siseedlan. Since the company is merely about
promoting and using environmental-friendly products, the background design of the company’s webpage
illustrates trees and leaves that significantly connotates the context of environment or nature. Meanwhile,
focusing on the elements present in the webpage, it is encompassed with menu bar which includes: Home,
Products, About us, and Contact that will direct the clients to their respective destination in the webpage.

Figure 3.2 Siseedlan’s List of Products in Official Website

Figure 3.2 shows the two official products that Siseedlan will offer to other corresponding business
amenities in the Philippines. The list of products that will be seen in the company’s website is accompanied with
brief description and picture to show what kind of product the company is available of. However, the price of
each paper container is not indicated since it may vary depending on the quantity the clients will avail.

Page | 22
 Figure 3.3 Other Important Features of Siseedlan’s Webpage

Figure 3.3 shows the other important feature of a business-related website such as the About us, and
Contact. The feature “About us” will constantly help target and consuming market be knowledgeable with the
Siseedlan company by its overview and details. On the other hand, “Contact” is necessary in a business website
since it is the communication platform of inquiring and acquiring answers from the two parties involved: target
clients and consuming market, and the Siseedlan company. Alongside with the communication platform is a
map wherein clients get to see the detailed directions and landmarks on how to get into the Siseedlan
Manufacturing Warehouse.

Page | 23
 Figure 3.4 2020 Market Size of Paper Bag Manufacturing Industry

As per AnythingResearch in February 2020, the industry analysis shows that from the year 2016 up to
2019, the growth of paper bag industry can be associated. From all business amenities, both public and private,
from small up to large scale businesses opt to acquire paper bags as means of packaging and container.

Figure 3.5 2020-2025 Market Forecast of Paper Bag Manufacturing Industry

As per AnythingResearch in February 2020, the market forecast of the paper bag manufacturing
industry shows an entitled 5-year long-term growth. In this sense, the paper bag industry ensures generating
high revenue due to the business markets’ green way practice in response to the deteriorating effect of plastic
bag containers. Likewise, Siseedlan company will be assured of generating continuous revenue since it has
established reputation and good image among the target companies. The product is in high demand up until the
future state since it serves as a better alternative over plastics which causes and brings negative effects to every
country’s environment.

D. ACCESS TO MARKET OUTLETS

Page | 24
 Siseedlan company is a Philippine manufacturing type of amenity that will produce and manufacture
plantable paper containers that are intended for well-established businesses such as grocery stores, huge fast
food chains, and shopping malls. The fact that the aforementioned target clients of Siseedlan are still engaged in
plastic consumption, they can be really classify as the best target market of the company owned by Ms. Cariño
to better establish the mission, goal, and purpose of her products not just with its company-focus, but also with
regards to the general public.

A. Production
As mentioned, the Siseedlan company owned and established by Ms. Cariño is classified under the
Philippine manufacturing industry. The amenity will seek to provide quality-based plantable paper containers
that will opt to achieve their pledged and envisioned mission and goals. To better accomplish the company’s
profile, the production of the plantable paper containers, as well as its availability, the amenity will have a
manufacturing warehouse located in the city of Marikina which will be suitable for the mentioned concepts and
ideas to be accomplished.

B. Promotion
As per Hose in 2019, good promotional strategies develop brand recognition which creates relationship
among its clients. As such, the Siseedlan company will be practicing and executing the improved product
sampling strategy for detailed marketing and for formality purposes. The chosen strategy by Ms. Cariño
encompasses product sample which will be given to desired clients through a door-to-door technique. The
aforementioned strategy that the Siseedlan company will use will only be effective if it is accompanied by the
correct and proper sample design of products that the amenity will offer. Additionally, coordinating with Silent
Beads movement in the context of promotion will further nurture and improve the amenity’s name and
reputation. With the said Philippine movement, the Siseedlan’s purpose and mission will prosper as the Silent
Beads already built a beautiful image towards the general public through their advocacy of planting.

C. Distribution
Since the Siseedlan company is a kind of manufacturing business, outsourcing can be classified as its
definite distribution since it is partnered with Transportify, the fast and leading courier in Manila. To widely
open the availability of the amenity’s products, the courier will be in charge to oversee the act of contracting out
the plantable paper containers to the target and consuming clients.

D. Preoperating Marketing Expense (CAPEX)

Type of Renovation Projected Renovation Expense

Structural, Form, Mansory

₱ 450,000.00
and Finishing Works
Total ₱ 450,000.00

Figure 3.6 Renovation Expense

Type of Equipment Quantity Price per item (Php) Projected Equipment/

Machineries Expense
HERO Kraft Paper Making Machine 2 P 152, 404. 50 ₱ 304,809.00
Intel Pentium G5400 PC Package 4 P 13, 549.00 ₱ 54,196.00
Total ₱ 359,005.00
Figure 3.7 Equipment and Machineries Expense

Page | 25
 Type of Estimated No. Of Projected
Utlities Bill per Month months per year Utilities
(php) Expense
Electricity (MERALCO) ₱ 15,000.00 12 ₱ 180,000.00
PLDT Landline ₱ 1,299.00 12 ₱ 15,588.00
PLDT FIBR WiFi ₱ 1,299.00 12 ₱ 15,588.00
Total 17,598.00 12 211,176.00

Figure 3.8 Utilities Expense

Type of Projected
Consumable Supply Quantity Price per item (Php) Consumable Supply
Expense
Veco Record Book 1 ₱ 86.00 86.00
Hard Copy Bond Paper 1 ream 1 ₱ 145.00 145.00
HBW 2000 Ballpen 1 box 1 ₱ 52.00 52.00
Total ₱ 283.00 283.00

Figure 3.9 Supplies Expense

Type of Projected
Furnitures and Fixtures Quantity Price per item (Php) Furnitures and Fixtures
Expense
Keddy Concept Stainless Steel Tables 2 ₱ 3,561.74 7,123.48
San-Yang Offi ce Table FOT1201 4 ₱ 3,685.00 14,740.00
San-Yang Furniture Offi ce Chair 400625 Set of 2 2 ₱ 5,391.00 10,782.00
Zhejiang Zoneyung Warehouse Shelf Storage 2 ₱ 3,556.11 7,112.22
Total ₱ 16,193.85 39,757.70

Figure 3.10 Furnitures and Fixtures

Expense

Type of Projected
Taxes and Licenses Quantity Price per item (Php) Taxes and Licenses
Expense
Bureau of Internal Revenue-Print 1 ₱ 3,300.00 3,300.00
Receipt and Invoice
Barangay Clearance 1 ₱ 300.00 300.00
Bureau of Internal Revenue-TIN 1 ₱ 575.00 575.00
Department of Trade and Industry- 1 ₱ 500.00 500.00
Business name Registration Certificate
Mayor’s/Business Permit 1 ₱ 1,769.00 1,769.00
Community Tax Permit 1 ₱ 1,300.00 1,300.00
SSS 1 ₱ 500.00 500.00
PhilHealth 1 ₱ 2,400.00 Page | 26
2,400.00
Pag-IBIG Fund 1 ₱ 150.00 150.00
DOLE 1 ₱ 8,000.00 8,000.00
Total ₱ 18,794.00 18,794.00
 Figure 3.11 Taxes and Licenses
Expense

E. Marketing Operating Expense (OPEX)

COMPENSATION AND BENEFITS BUDGET collective collective

Nature of Employment TOTAL (MONTHLY) TOTAL TOTAL

POSITION LevelstatusQTY COM PENSATION (monthly) TOTAL BENFIT (monthly) TOTAL COMP & Ben COMP & Ben (mo) COMP & Ben (annual)
Daily Pay M othly Pay OT COM PENSATIONSSS Phil Health Pag-IBIG M eal Uniform*
Distribution Manager 5 R 1 550.00 14,391.67 45.00 14,986.67 1,980.00 490.35 653.80 1,300.00 125.00 4,549.15 19,535.82 19,535.82 234,429.80
Inventory Manager 5 R 1 550.00 14,391.67 45.00 14,986.67 1,980.00 490.35 653.80 1,300.00 125.00 4,549.15 19,535.82 19,535.82 234,429.80
Warehouse Manager 5 R 1 550.00 14,391.67 45.00 14,986.67 1,980.00 490.35 653.80 1,300.00 125.00 4,549.15 19,535.82 19,535.82 234,429.80
Machine Operator 4 R 1 525.00 13,737.50 39.38 14,301.88 1,740.00 429.06 572.08 1,300.00 125.00 4,166.14 18,468.02 18,468.02 221,616.24
Warehouse Associate 3 R 1 500.00 13,083.33 38.25 13,621.58 1,740.00 416.80 555.73 1,300.00 125.00 4,137.53 17,759.11 17,759.11 213,109.36
Warehouse Worker 2 R 1 500.00 13,083.33 38.25 13,621.58 1,740.00 416.80 555.73 1,300.00 125.00 4,137.53 17,759.11 17,759.11 213,109.36

112,593.70 112,593.70 1,351,124.36

Figure 3.12 Compensation and

Benefits Expense

E. SALES PROJECTION

Product Selling Price Estimated Sales Per Day Estimated Sales Per Month Estimated Sales Per Year

Siseedlan 500 pcs/bdl- 2200.00 22,000.00 ₱ 660,000.00 ₱ 7,920,000.00

Papereed 300 pcs/bdl- 1500.00 15,000.00 ₱ 450,000.00 ₱ 5,400,000.00
Total 37,000 1,110,000.00 13,320,000.00

Figure 3.13 Sales Projection Table

The demand for an alternative packaging and commodity container arose as paper bags begin to
withstand plastic bags in terms of huge market desire, usage, and its better effects on the environment. In fact,
according to AnythingResearch in February 2020, paper bags show and secure a long-term growth for business
markets since it practices the green way, thus leading to its established future state. As such, as the demand of
paper bags begin to conquer, the estimated sales projection of the Siseedlan company owned by Ms. Cariño has
a huge potential in generating high sales due to its unique material and approach, the embedded seeds.
Additionally, the sales of the amenity can cater and deal its expenses and pending liabilities every one year.

IV. TECHNICAL FEASIBILITY

In this chapter, the company owned by Ms. Cariño provided the necessary processes of her products,
the plantable paper bag named Siseedlan, and the plantable paper meal box named Papereed. As such, the
product and distribution processes are the two present methods in this chapter that conforms the necessary steps
and supplies needed to accomplish the product, as well as discussing the outsourcing development that the
company will undergo to reach and communicate with its target and potential clients. In addition, the
Siseedlan’s floor plan, as well as the manufacturing store’s exterior and interior design are visible in this fourth
chapter of the feasibility study.

Page | 27
 A. FACILITY NEEDS
A. Creation of Product

Figure 4.1 Siseedlan’s Product Process

Figure 4.1 shows the materials and procedures on how to produce the main product of the company, the
paper bag which are embedded with seeds and is named Siseedlan.

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 Figure 4.2 Papereed’s Product Process

Figure 4.2 presents the procedure on how to successfully make the Siseedlan’s second product, the
Papereed.

B. Distribution of Product from Company to Customer

Figure 4.3 Distribution Process of Siseedlan

Figure 4.3 shows the flow of how the company will reach out to its clients. Since the Siseedlan
company is a kind of manufacturing firm, the amenity will apply the outsourcing distribution to reach and
communicate with its clients. With the sense of its physical manufacturing factory, the amenity partnered with a
logistics courier named Transportify to deliver products to customers in good hands, thus, it is considered one
way of acquiring outsource distribution.

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Figure 4.4 Floor Plan- First Floor Figure 4.5 Floor Plan- Second Floor

Figure 4.6 Siseedlan’s Front Perspective-Office Area

Figure 4.6 shows the exterior viewpoint of Siseedlan’s main office area. It is a two-storey building that
encompasses the offices of the owner and the three managers hired.

Figure 4.7 Siseedlan’s Back Perspective- Manufacturing Area

Figure 4.7 shows the exterior viewpoint of Siseedlan’s manufacturing area. The warehouse contains the
necessary equipment and supplies that the company needs in order to accomplish the products and impose for
availability.

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Figure 4.8 Left Side-Front Viewpoint of Siseedlan Figure 4.9 Right Side-Front Viewpoint of
Siseedlan

Figure 4.8 and 4.9 shows the left and right front perspective of the Siseedlan company.

The following series of figures will show the interior perspective of the Siseedlan company.

Figure 4.10 Siseedlan’s First Floor Figure 4.11 Siseedlan’s Second Floor

Figure 4.10 shows the first floor of the edifice which includes the information area, lounge area, shelf
display of products, restroom, workers’ meeting area, and most especially, the offices of the three managers of
the company. On the other hand, figure 4.11 shows the second floor of the amenity hat serves as the office of the
owner, as well as the meeting area for potential investors and clients.

The following series of figures will show a closer look of the first floor perspective of the company.

Figure 4.12 Siseedlan’s Office Area Figure 4.13 Siseedlan’s Manufacturing Area

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The following series of figures will specifically show the office area perspective of the company.

Figure 4.14 Information Area Figure 4.15 Lounge Area and Display of Products

Figure 4.16 Workers’ Meeting Area Figure 4.17 Restroom

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 Figure 4.18 Manager 1 Office Area Figure 4.19 Manager 2 Office Area

Figure 4.20 Manager 3 Office Area

Expense Expense Title Reference

Category Table No. Annual Projected Expense Pro Rated Expense
CAPEX
Rent Expense 756,000 756,000
Total Construction/Renovation Expense 3.6 450,000.00 450,000.00
Total Equipment and Machineries Expense 3.7 359,005.00 359,005.00
Total Furniture and Fixtures Expense 3.1 39,757.70 39,757.70
Total Govt Lisence and Fees 3.11 18,794.00 18,794.00
subtotal 1 1,623,556.70
OPEX Compensation & Benefits Expense 3.12 1,351,124.36 450,374.79
Supplies (Consumables) 3.9 283.00 94.33333333
Utilities Expense 3.8 211,176.00 70392
subtotal 2 520,861.12
subtotal 3 contigency fund 150,718.90
TOTAL CAPITAL REQ 2,295,136.72

Figure 4.21 Total Capital Expenditures

Figure 4.21 shows the total amount of capital expense (CAPEX) and operating expenses (OPEX) of
Siseedlan. The figure also includes the emergency or back-up fund of the amenity, well known as the
contingency fund that is amounting to Php. 150,718.90. In general, the total capital requirement that the
Siseedlan company will acquire will be amounting to Php. 2,295,136.72.

B. SUITABILITY OF PRODUCTION TECHNOLOGY

The Siseedlan company owned by Ms. Cariño is classified under manufacturing industry that provides
and manufactures newly innovated plantable paper containers intended for well-established amenities such as

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fast food chains. To successfully provide best quality of products, the company will have and acquire equipment
as it will be the Siseedlan’s key asset to achieve high productivity values while attaining its goals and objectives,
as well as satisfy clients’ standards. For a manufacturing business like Siseedlan, it is best and recommended to
properly maximize the utilization of the paper bag making machine to effectively produce the products that the
company offers. As such, the aforementioned machine will be the Siseedlan’s investment to efficiently produce
plantable paper containers.

As the Siseedlan company strives to provide environment-friendly products, the amenity’s investment:
the paper bag making machine is necessary for its primary operation. Primarily focusing on the paper bag
making machine, it is the most frequently used machine as the Siseedlan will somehow focus on providing its
main product, the plantable paper bag. It is used to produce the plantable paper bag in a high-quality condition
with a high-speed performance. Through the help of the acquired equipment, the business can easily produce
and generate high-level of paper bags in bulk.

C. RAW MATERIALS

Standard Costing

Product Name: Siseedlan

Yield: 1
Quantity Unit Raw Materials Market price Unit Price
price per qty unit equi cost/unit
60 pc Paper scraps ₱ 1.00 per 1000 pc ₱ 0.00 ₱ 0.06
1 g Seeds ₱ 100.00 per 500 g ₱ 0.20 ₱ 0.20
10 g Gawgaw ₱ 40.00 per 1000 g ₱ 0.04 ₱ 0.40
25 ml Water ₱ 7.50 per 750 ml ₱ 0.01 ₱ 0.25
total raw food cost (rfc) ₱ 0.13
add buffer: 10% ₱ 0.38
total raw food cost (rfc) +buffer ₱ 1.41
Add profit margin 50% ₱ 1.79
computed selling price ₱ 3.20
Suggested Selling Price (SRP) ₱ 4.98
note: 10% buffer is based on inflation rate

Figure 4.20 Siseedlan Costing

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 Standard Costing

Product Name: Papereed

Yield: 1
Quantity Unit Raw Materials Market price Unit Price
price per qty unit equi cost/unit
100 pc Paper scraps ₱ 1.00 per 1000 pc ₱ 0.00 ₱ 0.10
1.5 g Seeds ₱ 100.00 per 500 g ₱ 0.20 ₱ 0.30
12 g Gawgaw ₱ 40.00 per 1000 g ₱ 0.04 ₱ 0.48
35 ml Water ₱ 7.50 per 750 ml ₱ 0.01 ₱ 0.35
total raw food cost (rfc) ₱ 0.18
add buffer: 10% ₱ 0.53
total raw food cost (rfc) +buffer ₱ 1.93
Add profit margin 50% ₱ 2.46
computed selling price ₱ 4.39
Suggested Selling Price (SRP) ₱ 6.84
note: 10% buffer is based on inflation rate

Figure 4.21 Papereed Costing

V. FINANCIAL FEASIBILITY
In this chapter, Siseedlan’s finances are presented and stated which includes the estimated capital, the
contingency fund, the annual sales projection, and the pro-forma financial statements of the amenity.

A. ESTIMATE THE TOTAL CAPITAL REQUIREMENTS

Expense Expense Title Reference

Category Table No. Annual Projected Expense Pro Rated Expense
CAPEX
Rent Expense 756,000 756,000
Total Construction/Renovation Expense 3.6 450,000.00 450,000.00
Total Equipment and Machineries Expense 3.7 359,004.00 359,004.00
Total Furniture and Fixtures Expense 3.1 39,757.70 39,757.70
Total Govt Lisence and Fees 3.11 18,794.00 18,794.00
subtotal 1 1,623,555.70
Table 5.1 CAPEX Table
Working Capital Needs

Account Titles Total Amount

Current Assets
Supplies ₱283.00
Prepaid Installation ₱10,000.00
subtotal 1 ₱10,283.00
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Current Liabilities
Loan Payable ₱96,600.00
subtotal 2 ₱96,600.00
Total Working Capital -₱86,317.00
 Table 5.2 Siseedlan’s Working Capital Needs Table

Siseedlan's Contingency Computation

Expense Title Overall Amount of Expense Percent Contingency Amount

CAPEX Capital 1,623,555.70 8% 129,884.46
OPEX Capital 520,861.12 4% 20,834.44
Total Contingency ₱150,718.90
Table 5.3 Siseedlan’s Contingency Table

Table 5.3 presents the company’s contingency table with the use of Percentage of Project Base Cost
Estimate formula for the amount to be determined. The formula used by the proponent for her contingency is the
total amount of expenses’ product, together with a percentage rate of how much is anticipated to be used as an
emergency fund. In the case of the Siseedlan company, the contingency fund resulted to Php150,718.90 that will
serve as a back-up fund in case of unexpected raise in monetary value.

B. ESTIMATE EQUITY AND CREDIT NEEDS

Siseedlan company is a manufacturing amenity of plantable paper containers and packaging that is located
in the city of Marikina. To be able to start the business, Ms. Cariño is planning to have a personal savings and a
bank loan as means of her amenity’s capital. As a starter in the business world, the savings of the owner is
amounting to Php50,000.00. The remaining capital that the company will be needing will come from the bank
loan issued by the proponent. In lined with the personal loan benefits that will be made by the owner, as the
proponent is just new to the business, acquiring personal savings is a good choice for the reasons that: personal
loan is flexible; it offers various rates with long-term loans which is considered an affordable one. Meanwhile,
focusing on acquiring bank loan, it will provide the business long-term finances which will be efficient for small
start-up businesses. With the aforementioned loans to be acquired by the proponent, it will be paid on a monthly
basis.

C. BUDGET EXPECTED COSTS AND RETURNS OF VARIOUS ALTERNATIVES

Product Selling Price Estimated Sales Per Day Estimated Sales Per Month Estimated Sales Per Year

Siseedlan 500 pcs/bdl- 2200.00 22,000.00 ₱ 660,000.00 ₱ 7,920,000.00

Papereed 300 pcs/bdl- 1500.00 15,000.00 ₱ 450,000.00 ₱ 5,400,000.00
Total 37,000 1,110,000.00 13,320,000.00

Table 5.4 Siseedlan’s Sales Projection

Table 5.4 shows the projected annual sales of Siseedlan’s plantable paper containers. To interpret, the
combined annual sales of the two products of the company is Php13,320,000.00 using the 360 days formula. For
the amenity to breakeven, the overall capital of the business needs to be divided by the total amount of sales. To

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better visualize the statement and result, the equation below will show the breakeven computation of the
company.

Php2,295,136.72
=0.17
Php 13,320,000.00

Based on the result, the Siseedlan company will take one (1) year to breakeven.

The following pro-forma financial statements of the Siseedlan company are estimated finances of the
enterprise throughout one (1) year. The following values used are based from the tables that can be found in
Chapter 3 of the study. As the company owned by Ms. Cariño starts on September 2020 and the statements are
issued on December 2020, the values presented are multiplied or divided by 4.

Siseedlan
Statement of Comprehensive Income
For the year ended December 31, 2020

Sales ₱4,440,000.00
Total Revenue 4,440,000.00
Less: Expense
Equipment and Machineries Expense 359,005.00
Furnitures and Fixtures Expense 39,757.70
Supplies Expense 283.00
Utilities Expense 17,598.00
Total Expenses (416,643.70)
Net income ₱4,023,356.30

Figure 5.1 Statement of Comprehensive Income

Figure 5.1 presents the Siseedlan’s statement of comprehensive income. It encompasses the amenity’s
revenue and expenses, as well as computing for the clean profit that will be generated by the company. To
interpret, the estimated sales that will be produced by Siseedlan by the end of the year is amounting to Php
4,440,000.00 with total expenses compromising to Php 416,643.70. With the values showed, the estimated net
income from the subtracted amounts will be amounting to Php 4,023,356.30. The amount calculated is the clean
profit of the business.

Siseedlan
Statement of Changes in Equity
For the year ended December 31, 2020

Capital, beginning ₱764,806.00

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Add: Net income 4,023,356.30
Total 4,788,162.30
Less: Drawings 0.00
Capital, end ₱4,788,162.30

Figure 5.2 Statement of Changes in Equity

The financial statement present in figure 5.2 centered in the Siseedlan’s equity. The statement of
changes in equity shows some changes happened in the past months after the opening period of the company.
To interpret, the calculated net income from the previous financial statement is added to the beginning capital of
the amenity. Since the business started newly, Ms. Cariño, the owner of the company, did not make any
drawings, thus, there is no losing of monetary value. With that, the ending capital of Siseedlan is Php
4,788,162.30.

Siseedlan
Statement of Cash Flow
For the year ended December 31, 2020

Operating Activities
Cash from Sales ₱4,440,000.00
Cash Payment for Salaries -112,593.70
Net Cash Flow from Operating Activities ₱4,327,406.30
Investing Activities
Purchase of Equipment ₱-359,005.00
Purchase of Furnitures and Fixtures -39,757.70
Purchase of Supplies -283.00
Net Cash Flow from Investing Activities ₱-399,045.70
Financing Activities
Cash Payment to Accounting Firm ₱10,000.00
Net Cash Flow from Financing Activities ₱10,000.00
Net Increase in Cash ₱3,938,360.60
Cash, beginning ₱3,330,000.00
Cash, end ₱7,268,360.60

Figure 5.3 Statement of Cash Flow

Figure 5.3 shows the Siseedlan’s flow of money. The statement of cash flow entails and presents the
cash utilization done by the company and aids in financial decision-making. The statement is also encompassed
with three business activities: operating, investing, and financing. To interpret, the Operating Activities’ Net
Cash Flow is Php 4,327,406.30 due to high generated sales of the company; the Investing Activities’ Net Cash
Flow amounting to Php 399,045.70 due to heavy acquisition of assets; and the Financing Activities’ Net Cash
Flow amounting to Php 10,000.00 due to payment of third party accounting firm. With that, the overall ending
cash is amounting to Php 7,268,360.60 after adding the beginning cash and the total net cash flow of the three
activities.

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 Siseedlan
Statement of Financial Position
For the year ended December 31, 2020

Assets
Current Assets
Supplies ₱283.00
Taxes and Licenses 18,794.00
Prepaid Installation 10,000.00
Prepaid Rent 865,800.875
Total Current Assets ₱894,877.875
Non-Current Assets
Equipment ₱359,005.00
Furnitures and Fixtures 39,757.70
Total Non-Current Assets ₱398,762.70
TOTAL ASSETS ₱1,293,640.575
Liabilities
Current Liabilities
Loan Payable ₱96,600
TOTAL LIABILITIES ₱96,600
Owner’s Equity
Siseedlan, capital ₱1,197,040.575
Total Equity ₱1,197,040.575
TOTAL LIABILITIES AND EQUITY ₱1,293,640.575

Figure 5.4 Statement of Financial Position

The financial statement present in figure 5.4 centered in the Siseedlan’s three real accounts: assets,
liabilities, and equity. The assets acquired by the company are chronologically listed, as well as the liability and
equity of the company. To interpret, the total asset must be equal to the total liability and equity of the company.
As seen in the figure, the total assets computed resulted with equal total liability and equity of the company.

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 VI. ORGANIZATIONAL FEASIBILITY
In this chapter, Siseedlan’s legal structure and employees’ organizational chart are significantly
included and discussed. Additionally, the character profile of the business founder and proponent is also
presented in a well-detailed description.

A. BUSINESS STRUCTURE
The Siseedlan company is categorized under the Phiippine manufacturing industry that is created and
founded by Christine Joyce G. Cariño. As such, there is only a single founder and creator the amenity has, thus,
making it possible for the company to acquire a sole proprietorship type of business’ legal structure. As per
Entrepreneur Asia Pacific, sole propreitorship can be defined as a business that legally has no separation from
its owner. The sole owner must shoulder all risks that are needed to be undertaken by the amenity.

The figure 6.1 presented below shows the Siseedlan’s organizational chart. In general, the company is just a
small and simple business, hence, reflecting on the organizational chart below, acquiring only few workers will
already provide a huge contribution to the productivity of the small entity as tasks and workload are not that
heavy. Meanwhile, deeply focusing on each of the company’s workers, the owner is placed at the top of the
chart since Ms. Cariño will be in charge of her own business and the one with the final say. With the direct next
in line, the manager is classified into three positions: Distribution manager that is responsible for coordinating
the storage, transportation, and delivery of plantable paper products; Inventory manager that is assigned to
record stocks and monitor every item placed on shelves; and lastly the Warehouse manager that is assigned to
monitor the activities happening inside the manufacturing area, as well as monitor the staffs. Under the
warehouse manager are two job positions which are the warehouse associate- responsible for packing orders,
keeping inventory records, and maintaining the warehouse in an orderly fashion; and the warehouse worker-
responsible for picking designated items from a shelf, packaging these items, and preparing for shipment.  As
can also be seen in the chart below, the machine operator is directly intact with the warehouse manager as they
are specialized on the machines that the company has. With the last entity that the Siseedlan’s organizational
chart has, handling of the amenity’s finances is to be done by a third-party accounting firm.

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 Figure 6.1 Siseedlan’s Organizational Chart

B. BUSINESS FOUNDER
The founder is an advocate of greener environment with extended opportunities for business growth, with
her mother being an inspiration towards a greener way of living. In conjunction with the massive increase of
plastic disposal problems, providing an alternative packaging of food and other commodities with the use of
recycled paper is a golden chance. The founder also realizes that making profits without harming the
environment is a great help to decrease the problem about non-biodegradable disposal. It is also an exceptional
opportunity to do innovations to support the advocate of LGUs and non-profitable NGOs to fight the
consumption of plastic and to pursue income-generated ways to maximize earth's resources. The projected
clients of this product will not only be considered as customers but also eco-warriors, knowing that purchasing a
reusable and plantable paper bag can greatly save the earth by its own means. The founder greatly believes that
as a business owner, money is not the most important thing. One must also consider if many people will benefit
from it including the environment.

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Appendices

Business Permit

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BIR

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DTI-BUSINESS NAME REGISTRATION

SSS FORM

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PhilHealth Form

Pag-IBIG Form

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DOLE Form

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