SWEET ESCAPE

A Business Plan on Production Innovation

Presented to the Faculty of Senior High School Department
University of Cebu Main Campus
Cebu City

In Partial Fulfillment of the Requirements for

3I and SHS OJT ABM with the Core Subject Title
(Business Enterprise Simulation)

BUSINESS PLANNERS:
VANESSA CANE S. CANASA
JORY ANN THERESE A. HONGOY
GIF CLINTON M. IBJONG
DEBBIE JADE SON
MARY FAITH TIAMSON

REMEDIOS CYNTHIA M. AGAPAY, M.A. Ed.

Instructor

March 2018
 PRAYER

Heavenly Father, we humbly come before You with grateful hearts. We

thank You for the blessings that You have showered upon us. We thank You for
the success of Sweet Escape. Thank You, Lord, for letting us fulfills our duties as
the owners of Sweet Escape and also for the confidence and courage that we
had during the selling period. Thank You, Lord, for the profit that we generated.
Also, thank You Lord for we are able to bond more all throughout in making the
business possible.

Gracious God, forgive us for the things that we have done, said and
thought that did not please You. We have made a lot of mistakes Lord and we
are not worthy of You. We pray that You forgive us and help us to be truly sorry in
our hearts. Make our hearts clean and pure again Lord so that we may change
the way that we live.

Lord, our Savior, we ask for wisdom and guidance for our upcoming
success. We ask You, Almighty Father, to give us the clear way which we will
follow throughout our challenges. Give us courage to face the consequences of
our faults and give us the happiness that we seek. Lord, may You keep our group
through ups and downs and never let us give up on one another for us to achieve
greater things together.

iii
ACKNOWLEDGEMENTS
 With our deepest gratitude and appreciation, we humbly give thanks to all
the people who helped us in making our business successful.

Before anything else, we thank the Lord our God for guiding us in
everything we do and what we decide to do.

Our sincere recognition to our adviser, Prof. Remedios Cynthia M. Agapay,

for her unending guidance and long patience with us throughout the whole
journey of this business venture;

To Dr. Abelardo T. Tejo Jr., for granting our request to sell our product in
the campus and for his support in every events related to our study.

To our classmates and our friends, a gratitude is extended for their help
and support. Without them, we wouldn't be able to gain ideas on how to generate
profit.

Most especially to our dearest parents, who have been very supportive
from beginning to the end. We are thankful for their motivation and financial
support.

iv
 DEDICATION

We, Sweet Escape, humbly dedicate this to students who have dreams to
build a business or students who wants to pursue business.

The student’s aim to study in building business or becoming an

entrepreneur – Hence, the contents of this book should be able to provide data
for future references and guides in pursuing business.

We also dedicate this book to our families and teachers whose untiring
support and guidance have made the fruition of our efforts possible. To our
friends and schoolmates, for their cooperation.

Finally to our great Creator, our Almighty God the Father, Who made this
project possible and successful.

TABLE OF CONTENTS
 Page

Title Page i
Approval Sheet ii
Prayer iii
Acknowledgements iv
Dedication v
Table of Contents vi
List of Charts vii
List of Tables viii
II. THE FORMATS ix
a. Introduction x
b. Executive Summary xii
c. Business Description xvi
d. Organization Plan xvii
e. Production Plan xix
f. Operation Plan xxi
g. Marketing Plan xxii
h. Financial Plan xxiii
III. THE EXPLAINATIONS 1
a. Introduction 2
b. Executive Summary 4
c. Business Description 7
d. Organization Plan 8
e. Production Plan 10
f. Operation Plan 13

g. Marketing Plan 15
h. Financial Plan 17
One week product selling experience 21
IV. APPENDICES 22
A. Letter of Request 23
B. Product Model 24
C. Product Processing 25
D. Product Selling 28
Curriculum Vitae 29

vi
 LIST OF CHARTS

Chart Page

1. Business Plan xi
2. Business Model xv
3. Organizational Chart xviii
 LIST OF TABLES

Table Page
1 Projective Statement of Financial Position 17
2 Projected Breakdown 18
3 Actual Statement of Financial Position 19
4 Actual Breakdown 20
THE FORMATS
 INTRODUCTION

DESCRIPTION OF THE BUSINESS

 The product is chocolate polvoron with chocolate fillings.

 Satisfies the sweet cravings of consumer

LOCATION OF THE BUSINESS

 University of Cebu-Senior High Building.

FUNDING REQUIREMENTS AND SOURCES OF FUNDS

 Capital is Php 1,000.00.

 The sources of funds are from the owners’ allowances and parents.

x
 EXECUTIVE SUMMARY

Vision
 To produce a product which satisfy the sweet cravings of the consumers.

Mission
 Create a world where everyone attains a resilient, just, and sustainable
food system to ensure a good healthy snack for all.

Goals
 For the product to be recognized within the chosen locations of the
business.
 Increase the production of the product every month.
 To double the business revenue by the end of the fiscal year.

Objectives
 To reach a 200% quota within three months.
 To find a way on how to increase sales.
 To create an idea to help the business succeed.

Business Model
Partner Network
 Owners
Key Activities
 Ensure the affordability of the product
 Innovate the quality of the product
Key Resources
 Owners’ allowances

xii
 Cost Structure
 Total cost of all the needed materials and ingredients for the
product.
Offer
 Affordable price
 Satisfying sweet product
Customer Relationship
 Maintain good image
 Have a good relationship with the customers
Customer Segment
 All students can avail
Distribution Channels
 Persuasion
 Sales Talk
Revenue Segments
 Number of Manufactured Product x Price – Total Cost = Revenue

Business and Product Positioning

 Senior High School Students
- Sweet Escape can satisfy their cravings.
 Owners
- To observe precautionary measures and sanitary in the process of
making the product.

Wealth Improvement Approaches

 Courses of action needed to execute the organization's strategy that
covers the factors that address consumer needs and wants.
- Create a tagline or a product logo that would make the customers

xiii
 remember the product offered;
- Make advertisements online in order to give awareness to the
customers of the product;
- Have a good sales talk to persuade the customers to buy the
product;
- Continuously generate innovations; and,
- Exert efforts to maintain the sales of the products.

Parties Supporting the Business

 Customers
 The customers, senior high school students and the faculty
members of the University of Cebu are the life blood of the
business.
 Owners
 The owners will be the brain and body of the business. They serve
as the suppliers, employees and staff of the Sweet Escape. They
are the ones who will produce the products, do the sales talk, and
persuade the customers to buy the product.

xiv
 BUSINESS DESCRIPTION

Product Description
 Circular formed snack
 Brings out a sweet and milky flavor
 Offers a reasonable price
 Satisfy the sweet cravings of the customers

Equipment or Materials Needed

 Cooking Tools and Equipment

Size of the Business

 It is in a form of partnership
 It is a manufacturing business

Personnel Requirement
 High School Graduate
 Flexible
 Initiative
 Have good communication skills

xvi
 ORGANIZATION PLAN

Form of Business Organization

 The business is a form of partnership
 Liability of the owner

Liability of the Owner

 All partners are personally liable for any debts and taxes that are not paid.

Roles and Responsibility (NEXT PAGE NANI)

 The one who sees to the company's promotional strategies that boost
sales.
 The one who controls the production process.
 The one who controls the personnel of the company.
 The one who checks the finances of the company.

Proposed Salary
 Each members will receive 20% of the overall profit
 Minimum wage and benefits for the employees

xvii

PRODUCTION PLAN
Production Schedule
 Products will be produced every other day
 Total number of goods produced from a Php1000.00 starting capital can
be 250 pieces.

Production Process
 Equipment and Materials
- Cooking tools and equipment
 Ingredients
 Procedure
- For the polvoron
- For the fillings

Processing Plant and Equipment

 Equipment
- Butane
- Stove
 Location
- Tungkil, Minglanilla Cebu

Sources of Materials
 Suppliers
 Retailers

xix

Production Cost
 For the production of polvoron
 For the production of the chocolate fillings
 For the butane
xx
 OPERATION PLAN

Evaluation of Supplier
 Has a good terms with the owner
 Provides all ingredients
 Deliver ingredients on top quality condition

Material Requisition and receiving procedure

 Owners would order a single product
 Additional products will also be received
 Products are improved or will remain top quality

Storage and inventory control system

 Own a warehouse
 Check warehouse' employee every week
 Transfer goods monthly (varies)
 Survey stocks every month

Shipment system and control

 Convenient to customers and buyers
 Both should have agreed terms of shipment
 Shipment should be legal.

Functions of support service

 Assign personnel
 Risk in external sources of funds
 Have knowledgeable employees
 Have knowledgeable staffs

xxi
 MARKETING PLAN

Product
 Polvoron
- it has a chocolate filling
- it has different sides
Place
 Senior High School Building- University of Cebu Main

Price
 5 pesos each piece

Promotion
 Introducing the product with twist and promoting that it tastes good
 Advertising it using tarpaulin
 Unique product that the school canteen did not have
 Promoted as a snacks that could be eaten without disturbing the class
 Promoted as a snacks that could be eaten if they are hungry during class
hours

People
 Senior High School students
 School Faculty

Packaging
 Colored Cellophane

Positioning
 Product quality
xxii
 FINANCIAL PLAN

Sweet Escape
Statement of Financial Position
For the week ended January 12, 2018

Sales xxxx
Less: Cost of Goods Sold xxxx
Operating Expense xxxx (xxxx)
Net Income xxxx

xxiii
THE EXPLANATIONS
 2
INTRODUCTION

DESCRIPTION OF THE BUSINESS

Nowadays, most people know that almost everybody is so fond of sweets.

In choosing flavors, they would always prefer the sweet ones. In this generation

where anxious people are everywhere, sweets are known to relieve stress,

reduce worries, and also boost one's energy which then gives the owners an idea

of having "polvoron" as their product. Polvoron is a known product that every age

knows and patronizes. It is also a product that can be easily made at home. The

owners have come up with the business name "Sweet Escape".

The sweet escape aims to produce a product which satisfies the sweet

cravings of the consumers. The main product which is the polvoron will have a

chocolate filling with two different sides, the plain and the polvoron mixed with

crushed chocolates. It is a great help for the owners to meet their goals which is

stated above. This will then lead us to create a world where everyone attains a

resilient, just, and sustainable, food system to ensure a good snack for all.

LOCATION OF THE BUSINESS

The business was located at the University of Cebu-Senior High Building.

Aside from being required location, it was also an applicable venue for the

customers to patronize the affordability of the product.

 3
FUNDING REQUIREMENTS AND SOURCES OF FUNDS

The funding requirement budget was Php 1,000.00. The possible sources

of funds were taken from the owners’ allowances and some from their parents.

4
 Executive Summary
Vision, Mission, Goals, and Objective
This section indicates the vision, mission, goal and objectives that will help
and guide the business all through the way of making the business possible. The
vision of Sweet Escape is served as a picture of what the owners wants for their
business to become which is to produce a product that satisfies the sweet
cravings of the consumers. The mission of Sweet Escape is served as the task of
the business which is to create a world where everyone attains a resilient, just
and sustainable food system to ensure a good healthy snack for all. The goals of
the business are what the business is trying to achieve. The goals of the
business are for the product to be recognized within the chosen location of the
business, increase the production of the product every month and double the
business revenue by the end of the fiscal year. The objectives of the business
are to reach a 200% quota within three months, to find a way on how to increase
sales and to create an idea to help the business succeed.

Business Model
This part discusses the business model which defines the perspective of
Sweet Escape in terms of its structure, production, operation, and financial
activities that will lead to the achievement of the VMGO. It reflects certain
innovations that indicate the competitiveness of the business in the industry. The
partner networks of the business are the owners itself. The key activity of the
business is to ensure the affordability of the product and innovate the quality of
the product. The key source of the business is the owners’ allowances. The cost
structure of the business is the total expenses in producing the product. The
business offers affordable price and satisfying sweet product. The business has
two ways to have a good customer relationship which are maintaining good
image and have a good customer relationship with the customers. In customer
segment, the product is suitable for all the students in senior high. The
 5
distribution channels of the business are persuasion and sales talk. In revenue
segment, Number of Manufactured Product x Price – Total Cost = Revenue.

Business and Product Positioning

This section discusses the business and product positioning must be
convincing that the proposed business has a competitive advantage in the
market. In Sweet Escape, the owners decided to produce a product that satisfies
the customers’ sweet cravings. The business provides a satisfying sweet productt
with a reasonable price and a good quality of ingredients and packaging. The
product itself is the proof that it is worth buying for. The owners made sure that
the process of making it has observed precautionary measures and sanitary for
the safety of the customers.

Wealth Improvement Approaches

This portion determines the wealth improvement approaches that
describes the methodologies or approaches that will be taken by the business. In
Sweet Escape, the owners decided to create a general plan of action which is
aligned with the business’s VMGO. This is a carefully thought-out course of
action developed for the purpose of achieving a desired result such as
profitability and productivity. The business should also undertake courses of
action in order to execute the organization’s strategy. These actions must cover
the factors that address the consumer needs and wants.

Parties Supporting the Business

The parties supporting the business describe the parties that have a direct
relationship with the business. The parties that have a direct relationship with the
business are the following:
 6
(a) the customers which are the life blood of the business - they are the senior
high school students of the University of Cebu, (b) the oowners, which are the
brain and body of the business are the suppliers, employees, and staff of the
business.
 7

BUSINESS DESCRIPTION

Product Description
This section explains the product description of the business which is
polvoron with chocolate fillings. It is a circular formed snack made with chocolate
fillings which brings out sweet and milky flavors. It can satisfy the customers’
sweet cravings and offers a reasonable price.

Equipment / Materials Needed

This part indicates the materials needed for producing polvoron. The
materials needed are mixing bowl, spatula, and spoon, molder, measuring cups,
frying pan and stove.

Size of the Business

This portion explains the size of the business. The business is a
manufacturing business and in the form of partnership. It is associated with five
people.

Personnel Requirement
This section talks about the personnel requirement. He or she must
present a resume together with a medical certificate. Must be a high school
graduate, flexible, initiative, and with good communication skills.
 8

ORGANIZATION PLAN

Form of the Business Organization

This section discusses the form of the business organization. Sweet
Escape is a form of partnership and it is associated with five people. The
partners had legal agreement on how the business decisions will be made, how
problems will be solved, how a partner will be bought out or admitted to the
partnership. The business being partnership entity is not taxable rather the
owners are held accountable for it. The government cannot intervene on the
business instead the school policies should be followed by the owners in
creating, managing, and supervising the business in ethical way.

Liability of the Owners

This portion determines the liability of the owners. In partnership, partners
generally shares equally in management of the profit and losses, and assumes
equal responsibility for debts and liabilities. If there are any complications in the
business such the organization is incurred with debt or one individual partner fails
to pay taxes, the whole partnership are personally held responsible for it.

Role of the Owners

This part discusses the roles and responsibility of the owners. The Head
of Sales and Marketing Team is the one who sees to the company’s promotional
strategies that boosts sales. The head of sales and marketing should have a
flexible and open mind when it comes to the newest marketing trends to be able
to cope up with the change.
In this section, it talks about the roles and responsibility of the Head of
Production. The production head is the one who has control of the production
process, as to how many pieces are to be produce considering people’s

9
demands. The head of production should have proper judgement and thinking in
order to control the demand-supply of consumers.
This part talks about the roles and responsibility of Head of Administration.
The administration head is the one who control the personnel of the company;
from the number of personnel, salaries of the employees and other employee
queries. The head of administration should have a sound mind and heart as to
address the problems of employees and a flexible and pleasing personality.
This section talks about the Head of Finance. The Head of Finance is the
one who checks the financial statements of the market and company and relate
those to create data that should be useful for the Sales and Marketing Team in
making proper decisions. The head of Finance should be a critical thinker and
analyst as to how the market moves to formulate proper financing decisions.

Salary Requirement
To fairy distribute the profit to the members of the business; each one will
get 20% of the overall profit. The profit will serve as the salary of the members. If
the business continues to prosper, then it will need a bigger workforce. The future
employees will have a minimum wage and benefits like SSS, PAG-IBIG,
Philhealth, and 13th month pay. There will be also salary increase and
promotions if an employee will give a good performance.
 10

PRODUCTION PLAN

Product Schedule
This section discusses the production schedule where the production
team is going to produce the product every other day based on the demands of
the consumers. The expected total number of goods that can be produced with a
Php 1,000.00 starting capital will be 250 pieces.

Product Process
This part indicates the process of making the product as well as the
materials and ingredients required and the expected time to process the product.
For the materials needed, the production team must prepare for the cooking tools
and equipment which includes the mixing bowls, spatula, molder, measuring
cups and frying pan. On the other hand, the ingredients used are powdered milk,
sugar, butter, flour, crushed chocolates, sugar syrup and coconut oil. The
production process is going to last for about one to two hours.

Processing Plant and Equipment

This section determines the equipment used in the production of polvoron
which are the stove and butane. The butane used cost Php 18.00 that can be
used several times.
This part also talks about the location of where the product will be
produced. It will be at Tungkil, Minglanilla Cebu. The owners have chosen this
location since it is convenient and has the complete materials in producing the
product.

Sources of Materials
This portion discusses the sources of the raw materials needed. The raw
materials will be taken from Colonnade Supermarket and Garlic House. The
11
Colonnade Supermarket and Garlic House are well known for having a complete
and different varieties of products they are selling and has lesser price compared
to other stores and it is also accessible for the owners to gather their materials.
The payments are made in cash.

Production Cost
This portion discusses the production cost of the chocolate filled polvoron.
The total expense of production of the chocolate filled polvoron is Php 1000.00.
For the other expenses such us butane and cellophane which also includes
transportation expense it costs Php 175.00. On the other hand, the ingredients of
the ordinary polvoron costs Php 625.00, for the fillings it cost Php 200.00.
 12

PRODUCTION PLAN

Procedure in making the product

 13

OPERATION PLAN

Evaluation of Supplier
This section discusses the evaluation of suppliers. As the business
continues to prosper in the market, the owner would probably choose a supplier
that will be in good terms with them. It will be those who would provide them as
the ingredients they will need. Assuming that the suppliers attained those
standards, the owners would also see if the ingredients and materials are on top
quality condition in order for them to create and establish harmonious working
relationships.

Material Requisition and receiving procedure

This section explains the material requisition and receiving procedures.
Upon the receipt of the ingredients, the owners will probably be the one to
inspect the ingredients delivered. Ingredients received will plausibly be based on
what the owners ordered and this will be there supplies that the business needs.
The owners would order a single product but knowing the good term relationship
with the suppliers, they would certainly receive special add-ons. As the
relationship of the owner and supplier get stronger, the quality of the ingredients
would remain top quality or perchance be improved.

Storage and inventory control system

This section determines the storage and inventory control system. To
ensure safety from possible theft or loses, the owners will probably do the
inventory. Part of the profit they will gain will possibly be invested in building and
owning a warehouse which at the same time will be the factory for production.
The owners will check the warehouse every week to guarantee the wellness and
camaraderie of the employees. The transfer of goods to the customer will be
done monthly. This would depend on the demand of the customers. To control
 14
the inventory, the owners will probably check the warehouse every month to
survey the remaining stocks.

Shipment system and control

This section indicates the shipment system and control. In order to have a
favorable environment of shipment, it should be convenient both to the consumer
and buyer. The supplier and the owners should agree on what will be their
chosen terms of shipment. The way of transport must also be legally signed by
the corresponding personnel of the government.

Functions of support service

This section discusses the function of support service. As the business
continues to grow, the owners would need other supports aside from themselves.
Assigning personnel on every department would be a good idea. The owners
should also risk in having external sources of funds. On the area of production,
they should have employees that will be a great help in achieving the desired
goal. In order to do this, the organization should have a human resource
manager that would be wise enough to accept excellent workers.
 15

MARKETING PLAN

Product
This section indicates the product of sweet escape which is polvoron. It is
not only an ordinary polvoron because it has a twist. Its twist is that it has a
chocolate filling in the middle and has different flavored sides. One side of the
polvoron is vanilla flavored and the other side is vanilla with chocolate.

Place
This section indicates where Sweet Escape will sell their polvoron. The
company will sell it at the Senior High School Building – University of Cebu Main
because of its potential market.

Price
This section will indicate the price of the polvoron. The polvoron would be
five (5) pesos each piece. It was computed proportionate with the ingredients and
materials used in making the polvoron.

Promotion
This section will indicate on how the company will promote the polvoron.
The owners would introduce the uniqueness of the polvoron compare to other
products. Firstly, it would be marketed as a snack that taste good and would be
advertised using a tarpaulin. Second, it will be promoted as a product that the
school canteen do not have. Third, it would be encouraged as a snack that could
be eaten during class because it won't create crunch noises that could disturb the
class. Last, it will be promoted to be eaten when you're hungry during class hours
 16
People
This section will indicate the target market of the company. Their target
markets are the senior high school students since majority of them occupies the
building and the school faculty members considering their great influence to their
class in terms of product critic.

Packaging
This section will indicate the packaging used in the product. The company
will use colored cellophane to attract the eyes of the consumers and to avoid
food contamination due to dust and dirt.

Positioning
This section will indicate what aspect the polvoron would stand-out in the
competitive market. The polvoron would stand-out because of its product quality.
In terms of the quality of the ingredients used and the unique taste it brings.