Establishment of Foodpreneurial Enterprises

(Manufacturer of Cheebols: Kimchi Rice Balls)

Barangay Darasa, Tanauan City, Batangas

A Business Plan Presented to the Faculty of Accountancy, Business and

Management
First Asia Institute of Technology and Humanities
Fidelis Senior High School

In Partial Fulfillment of the Requirements for the Subject

Entrepreneurship

By:

Bitgue, Dessiree Anne M.

Catimbang, Christine Donna C.
Marco, Keith Denissie G.
Mueco, Michael B.
Sanchez, Leidee D.
ABM 12-D

March 2018
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EXECUTIVE SUMMARY

Name of the Company: Foodpreneurial Enterpise

Name of the Product: Cheebols: Kimchi Rice Balls

Location: #2 President J.P Laurel Highway, Tanauan City, Batangas

Initial Investment/s: Php 3,500.00

The Foodprenurial Enterprise is a food business that will provide an innovative

brand of rice balls called Cheebols. Cheebols offers three levels of awesomeness. It

contains an inner core of Kimchi goodness, surrounded by a seasoned rice mix all

encased in a crunchy outer layer. The establishment of Foodpreneurial Enterprise is

located at First Asia Institute of Technology and Humanities (FAITH) in Tanauan City,

Batangas. The proponents generally chose the Korean Fanatics of FAITH as their target

market since Korean trend is very evident in today’s generation.

Cheebols is a product made to provide a different to the original riceballs. The

cost of Cheebols per piece will be Php7.00. In determining the price of the product, the

proponents used the pricing strategy of Cost Plus Pricing to identify the cost per piece

and the desired percentage of mark up to come up on its selling price. The preparation for

the cooked Cheebols will consume 1 hour and 45 minutes. The supply for the following

ingredients such as mixed vegetables, ground pork, seasonings, glutinous and regular rice

will be bought at the Tanauan City Public Market located at Tanauan, Batangas while the

Kimchi, and Chili pastes could be bought at Laguna. As of now, the total investment of

Foodpreneurial Enterprise is Php 3,500.00.

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For the promotion of the business, the proponents are planning to venture in

bundling price strategy wherein customer can purchase three Cheebols for the price of

P20.00. The business will also have online promotion with the use of different social

media. Posters and flyers will be posted in the area of distribution to promote product

awareness to the customers.

The proponents invested an initial amount of three thousand five hundred pesos

P3,500.00. The majority of this amount will be used for the fund start-up operating cost.

The proponents considered various sources of funding to raise capital for the proposed

business venture. The owners contributed capital from their own savings and allowances.

They also consider borrowing money from family members to be able to fund the other

costs and expenses needed for the business venture.

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CHAPTER I

GENERAL COMPANY DESCRIPTION

Vision Statement

The Foodpreneurial Enterprise envisions itself to be the leading producer of

Cheebols within the range of its target market and successful business provider of created

products for the benefit of the target market.

Mission Statement

The Foodpreneurial Enterprise aims to exceed customers’ satisfaction by

providing new and unique products giving the customers a different food experience by

offering an affordable food they can eat and enjoy on-the-go.

Company Objectives

 To be able to sell 200 pieces of Cheebols per day.

 To be known for its good quality foods.

 To build a strong bond between the potential customers and the proponents.

 To provide an ethical price that is attainable by the average level of population.

 Earn the trust of customers by continuous improvement of the product.

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Description of the Product

Since rice is the staple food of the Filipinos and there has been a growing interest

among Filipinos with the Korean food, the proponents formulate an idea of producing on-

the-go food at an affordable price that will cater the needs and wants of the customers.

Korean foods are known for its strong spicy flavor and distinct smell. One of

these is the most well-known Korean side dish, Kimchi. By that, the proponents came up

with the idea of not only making the kimchi as a side dish but to enhance it by adding

more, mixing it with ground pork, vegetables and rice with a cheesy twist.

The proponents want to improve the typical kimchi and also, use the staple food

of the Filipinos, rice. So, they came up with the idea of using it both and innovate it more,

combining it in a ball-shape form producing “Cheebols”.

Cheebols offers three levels of awesomeness. It contains an inner core of Kimchi

goodness, surrounded by a seasoned rice mix all encased in a crunchy outer layer.

Whether you’re a commuter in a rush and you failed to prepare your meal for the day, a

hungry moviegoer, a student who needs to finish a deadline, then this is the solution to

those meal time dilemmas.

Being a complete meal, the product is sold in the most suitable price for the

convenience and satisfaction of the customers. The supplies are available because its

main ingredient is the staple food of Filipinos.

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CHAPTER II

MARKETING PLAN

MACRO-MARKET ANALYSIS

Socio-cultural Factor

 The Lifestyle of the Consumers

The lifestyle and choice of consumers are often influenced by friends, learning,

education, religion and ethnicity. These socio-cultural factors affect the way of

consumers in acquiring products. Consumers who do not eat anything spicy and dislikes

the distinct smell of Korean dishes like Kimchi will not be the main consumers of

Cheebols. It will affect the sales of Cheebols since there will be a decrease in the number

of potential consumers of the product. However, because of the increasing demand of

Korean culture in the Philippines, the Cheebols can pave the way for satisfaction and

convenience of Filipinos on Korean Foods. This will help to increase the sales for

Cheebols.

Technological Factor

 Technology Incentives

The proponents considered the technological progress and new inventions as

strength in the production of Cheebols. The use of high quality equipment will be less

time consuming and is an advantage against the competitors. The use of electronic

devices will help in the promotion and product awareness of the product that will increase

the sales and production of Cheebols.

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Economic Factor

 Growth Rates

Since the economy is progressing and more products are being introduced, the

fast-changing economy is a threat to every business. Since the price of products changes

over time, this may lead to changes in cost of material needed in the production of

Cheebols. Therefore, the price of the product will also increase.

 Level of Consumers’ Disposable Income

When unemployment is high, consumers tend to limit their expenses; this may

decrease the sales of Cheebols. However, if there is a high purchasing power of the

consumers, this means that there is a possibility that the sales of the product will also

increase.

Environmental Factor

 Weather

The price of commonly consumed products increases when there are natural

disasters like storms or typhoons. Since rice is one of the ingredients of Cheebols, it

would affect the cost of raw materials. The cost of Cheebols will also be affected.

Distribution of products when there is a typhoon is another factor that will affect the sales

of the product since consumers tends to stay at home.

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Political Factor

 Government stability and likely changes

Laws and city ordinances made or implemented by the government may affect the

business venture in a positive or negative way. Flexibility among the business is needed

when there are new ordinances made by newly elected officials that may contribute in the

changes to be made by the business.

Legal Factor

 Consumer Protection

It is now a big deal for the consumers to take consider to their rights. There are

some laws presented for the consumers to check one product. Cheebols is a healthy

product because it consists of ingredients that could benefit any consumers that would

acquire the product. The place where the product was made is clean and passed through

specific quality control mandated by the company, so the Foodpreneurial Enterprises

proves that the product was made properly and when it comes to the convenience of the

consumers on the product itself.

 Copyright, Patents/ Intellectual Property Rights

To maintain the product’s originality and authenticity, the proponents are

planning to use patents and trademarks for its company logo.

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Ethical Factor

 Accepted Accounting, Management, and Marketing Standards

The proponents will make a list of guides for the business to follow all the ethical

actions to take consider when the business will run. The proponents will make use of

flyers to spread out and advertise the product, a practice of being approachable and

making use of persuading actions will serve as the strategy to attract the consumers. The

proponents should pass through a right way of getting the invention of others and proper

way of managing people to build a good relationship on its possible employees.

Demographic Factor

 Population of the Consumers

The proponents will have the students, staffs and teachers at First Asia Institute of

Technology and Humanities (FAITH) as the target market of Cheebols. Consumers are

suited for all ages and it is both for female and male. The estimated consumers are 3,000

excluding other consumers around the vicinity of Tanauan City that will patronize the

Cheebols especially the Korean food lovers and fanatics.

MICRO MARKET ANALYSIS

Customer

The Foodpreneurial Enterprises is located at First Asia Institute of Technology

and Humanities (FAITH) in Tanauan City, Batangas. The proponents generally chose the

Korean Fanatics of FAITH as their target market since Korean Hallyu is very evident in

today’s generation. The product is suited for all ages with an estimated number 3,000 as
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the consumers which includes the students and staffs of FAITH, excluding the potential

consumers located near Tanauan City. The proponents believe that the product will surely

love by the consumers since it can easily attract potential consumers through this

generation of Korean Hallyu. Any consumer that is acquiring a product takes

consideration the product’s price. With this, the proponents set their product in a lower

price that suits the budget of any consumers. It is very affordable and has a high

purchasing power since it can easily attract their interests. Cheebols can pave the way on

Filipino-Korean taste that seeks to satisfy the needs and wants of consumers.

Customer Segmentation

Primary Target Market

 K-Pop Fanatics – the group is composed of people who are highly influenced by

Korean Trend.

 Students & Staffs – the group of people who may notice and avail the product

since the business is located inside the campus

Geographic

 Country: Philippines

 Region: IV-A (CALABARZON) – Focusing in places in Batangas

Demographic

 Gender: Available for all types of gender

 Age: 6 years old and above

 Occupation: Students, Teachers and Staffs in FAITH

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 Social Class: Middle Class, Upper Class

Psychographic

 Lifestyle: Health Conscious

 Interests: Healthy & Nutritious Foods, Affordable, Korean Foods

Behavioral

 Curious Consumers who want to try and explore new products and new flavors.

 Students who are having a hard time in eating vegetables

 Person who loves spicy foods.

Secondary Target Market

The following are the secondary target market which will serves as another channel

for proponents in product distribution.

 Food Stalls – as one of places where they’re selling lots of food product that are

somewhat like Cheebols.

 Vicinities around Tanauan City – where other possible consumers are located

who can avail the product.

Supplier

The proponents trusted supplier would be K-Mart of Laguna. This would serve as

the trusted supplier of Kimchi and other Korean pastes & sauces needed to produce

Cheebols. Other secondary ingredients will come from Tanauan Public Market. In case
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the two trusted suppliers cannot meet the demand for these materials, the proponents will

consider Waltermart Tanauan as a secondary supplier.

Competition

The direct competitors of the company will be Sweet Potato Cake of JJRPE

Enterprises which sells Sweet Potato Cake at a lower price than Cheebols. This product is

somewhat related to Cheebols, but sweet potato is their main ingredient. Kim Bok Chi of

The Sarang Corporation which offers Buchi mixed with Korean Spicy Chicken that is

somewhat like Cheebols. Fish Nuggets of Del Bazarte Enterprise which is an enterprise

that offers a bundle of Fish Nuggets with Rice which seeks to satisfy the needs and wants

of the customers in one complete meal.

Indirect competitors are other food carts that serve street foods and food stalls and

vendors that serve Filipino merienda that would probably satisfy the convenience of the

Filipinos.

Here is the matrix of direct and indirect competitors:

Table 1. Direct Competitors

Direct Competitors
Company Target
Product Price Distributor
Name Market

The Sarang Kim Bok

PHP 10.00 Students Food Stalls
Corporation Chi

Sweet
JJRPE Food Stalls
Potato PHP 5.00 Students
Enterprises
Cake
Del Bazarte Fish
PHP 20.00 Students Food Stalls
Enterprises Nuggets
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Table 2. Indirect Competitors

Indirect Competitors
Company Target
Product Price Distributor
Name Market
Proben, PHP 0.50,
Fishball, PHP 1.00,
Budget
Street Kikiam, PHP 2.50,
Conscious Food Carts
Vendors Squidballs, PHP 10.00
Consumers
Kwek- (Prices may
kwek vary)

Competitive Analysis (Five Porter’s Forces Model)

1. Threat of New Entrants

The Foodpreneurial Enterprise suspects that the threat of new entrants in food

industry will be high. There is an increasing amount of food varieties in the market

especially those that are very affordable. Those products can easily attract possible

consumers particularly; students. However, people tend to buy products that are tried and

tested by the consumers. This is the reason why the Foodpreneurial Enterprise is having a

hard time introducing their product in the market especially that they are new in business

industry. Through this, the proponents used the opportunity of the Korean Hallyu to

create a one-of-a-kind product with promotions and marketing strategies for the public to

be aware on how significant the product to the market.

2. Bargaining Power of Supplier

Since the proponents need a lot of ingredients and even Korean paste and kimchi

as their main ingredients, the proponents need to ensure the quality and stability of the

price of the materials needed to produce the product. However, the producers may have

control in influencing the selling price especially if buyers are less likely to the numbers
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of suppliers which may create a competition between the both parties, thus the bargaining

power of supplier is high.

3. Bargaining Power of Buyers

Customers tend to check prices of products that interests them before acquiring it.

Whether the product is quality-made, it will always be a question of “how much”. This

leads for the product to be set in a lower price for it to be acquired. The Foodpreneurial

Enterprises’ Cheebols seeks to satisfy the needs and wants of the consumers by offering

an on-the-go food that is affordable to the consumers of all ages. Therefore, there is a

high bargaining power of the buyers.

4. Threat of Substitute Products

The Foodpreneurial Enterprises’ offers a Korean Food Snack with a Filipino twist

which is the Cheebols. The threat of being substituted is cannot be controlled especially

that there are business ventures that offers somewhat related to the Cheebols. These

products are sweet potato cakes, Kim Bok Chi and fish nuggets that intensify the level of

competition in increasing product sales and potential consumers.

5. Degree of Competitive Rivalry

Since the proponents are new in the business, there are existing business ventures

that offer products that are related to Cheebols and even Korean Products. This will lead

to the consumers to buy products that already fits to their taste and preferences which

forbids them to try new products. This will create an intense competition between

ventures which provides different effects in both businesses.

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SWOT ANALYSIS

Strengths

1. Korean Generation

This is considered as Korean Drama and Oppa's generation. There are lots of

students and even the school staffs and teachers are fanatic of Korean Hallyu.

2. Korean Vibes

The Foodpreneurial Enterprise is serving "Cheebols". It is mixed with the Filipino

food just like glutinous rice and the standard rice in the Philippines. Together with the

Korean side dish "Kimchi". To be one of the growing population of Korean generation,

the proponents decided to create a product that will taste Korean food.

3. Unique

As the proponents are new in the business world, they create a one of a kind

product that will surely beloved by the Filipinos especially the Korean fanatics.

4. On-The-Go Food

As per the proponents realized that consumers really wanted an easy-to-go or

easy-to-eat food, they decided to upgrade a Kimchi rice in a box into Kimchi Rice Balls.

By this, they foreseen that this enterprise has lots of return costumers.

5. Affordable

The proponents set their product in a lower price that suits the budget of any

consumers. It is very affordable that can easily attract their interests.

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Weaknesses

1. Potential Consumers and Sales

The Foodpreneurial Enterprise offers Cheebols wherein it has a spicy taste due to

its main ingredient which is Kimchi that is known for its spicy sour taste and stink smell.

There are some consumers that are not a spicy food lover and it can affect the enterprise’s

potential consumers and sales.

2. Costly

A lot of ingredients are needed to make Cheebols which can result to a higher

selling price of the product.

3. Time Consuming

In the production of the Cheebols, it is very time consuming and it takes a lot of

efforts to create Kimchi Rice Balls.

Opportunities

1. Popularity of Korean Hallyu

The product can attract a lot of possible consumers, especially those Korean

Fanatics since the proponents take advantage of this increasing popularity of Korean

Hallyu.

2. Social Media

With the use of social media, it will help to disseminate information for public

awareness to get consumers due to the advertising strategy of the proponents.

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3. Adding Korean Products

Expanding and adding Korean products are considered by the proponents for

future business activities that will surely beloved by its target market.

4. Health Conscious Consumers

Even though the product possesses a spicy taste, it has a lot of health benefits that

are very significant for the market.

5. Consumers Buying Behavior

People tend to buy products that they tried and tested. However, through the

marketing strategies and promotions of the Enterprise, consumes would tend to try new

products and new flavors that would satisfy their needs and wants.

Threats

1. Main Competitors

There are three main competitors of Foodpreneurial Enterprise, the “The Sarang

Corporation’s Kim Bok Chi”, “JJRPE’s Sweet Potato Cake” and “Del Bazarte’s Fish

Nuggets” that is somewhat related to Cheebols. This will create an intense competition

between ventures with corresponding effects in business.

2. Price Sensitivity

Price sensitivity of a consumer can lead to a transfer in a substitute product.

Consumers tends to buy products with very affordable price which the Enterprise’s takes

in consideration upon producing the product.

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MARKETING MIX

PRODUCT

A product must provide value and satisfaction to its customers and end users.

Since Rice is the staple food of the Filipinos and there has been a growing interest among

Filipinos with the Korean food, the proponents formulate an idea of producing on-the-go

food at an affordable price that will cater the needs and wants of the customers.

Innovation of famous Korean food, Kimchi and Filipino’s staple food, Rice is what the

proponents’ desires.

The product special features can be categorized using the three-level concept of

Philip Kotler:

Level 1: Core Benefits of the Product

Cheebols contains an inner core of Cheesy and spicy goodness, surrounded by

seasoned rice mix that is made of combined glutinous and regular rice, mixed vegetables

such as carrots, peas, and corns. All of these are mixed together and are encased in a

golden brown crunchy outer layer. This will satisfy the craving K-fanatics and food

lovers as Cheebols do not only give worth-gawking foods but also give the customers the

taste of Korean tradition because of its traditional chili pastes, and of course, Kimchi

itself, that can be stated in every bite.

Level 2: Physical Characteristics of the Product

Foodpreneurial Enterprise gives customers discounts because the enterprise offers

Chebunds, that means the customers can buy 3 Cheebols with a price of P20.00, instead
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of P7.00 each. The enterprise also gives customers easier access because the product is

available online and can be ordered at their Official Facebook and IG account. Customers

can also purchase in pack whenever they have parties and events because the enterprise

also accept bulk orders. Also, Customer are assured that all the employees in the

enterprise are friendly, efficient, and have high morals resulting to an excellent customer

service.

Level 3: Augmented Benefits of the Product

Due to the growing population of Korean fanatics, consumers would really love

the "Cheebols" because it is mixed with a Korean taste. The main ingredient of Cheebols

is "Kimchi". It is a nutritious and gives a lot of health benefits when you eat kimchi. For

the vegetarian persons, it is the best food that will surely suits to their taste. Filipinos will

surely love it because it has rice which is the standard food of the Philippines.

PLACE

In choosing the possible location for the business, lots of components were

considered by the proponents. Since the proponents are students from First Asia Institute

of Technology and Humanities (FAITH), their target market is composed primarily by

the students and staffs from FAITH. The proponents believe that their target market will

greatly contribute to the success of the business since the product they are offering is in

trend and would probably attract its consumers’ taste and preferences. Therefore, the

business is located inside the campus of FAITH to avoid any circumstances and to be

accessible on its target market. The proponents will also make an official Facebook page

to help increase product awareness not just in its target market and desired location, but
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also in the whole province of Batangas and are also planning to offer its product around

the vicinity of Tanauan City, around municipalities where the proponents are residing and

even within the comforts of the proponent’s own home.

PRICE

The Foodpreneurial Enterprise used the pricing strategy of Cost Plus Pricing

Method to identify the price of the product in breakeven sales per day, per week and per

month. The price of the product will include the cost of raw materials, labor cost, cost of

expenses as well as the mark up price. After the proponents considered the competitor’s

costs and prices, each Cheebols will be sold at PHP 7.00.

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Table 3: Product Costing

RAW MATERIALS
Unit
Materials Quantity Unit Amount
Price
Flour 1 Kilo P40.00 P0.02
Cornstarch ½ Kilo P15.50 P0.02
Eggs 14 Pieces P70.00 P0.09
Silver Swan Sweet 1 Bottle P28.65 P0.05
& Sour Sauce
Vegetable Oil 2 Liter P90.25 P0.10
Breadcrumbs 1 Kilo P115.00 P0.04
Quick melt Cheese 200 Grams P59.00 P0.05
Pork Giniling 1 Kilo P240.00 P0.45
Glutinous Rice 1 Kilo P105.00 P0.20
Rice 2 Kilo P200.00 P0.50
Corn 1½ Kilo P30.00 P0.15
Green Peas ¼ Kilo P30.00 P0.15
Carrot 3 Pieces P17.33 P0.15
Onions 1 Pack P10.00 P0.02
Garlic 1 Pack P10.00 P0.02
Pepper 1 Pack P10.00 P0.02
Magic Sarap 1 Pack P10.00 P0.02
Sunchang
500 Grams P123.00 P0.10
Kotchojang
Ssamjang 500 Grams P110.00 P0.10
Dwenjang 500 Grams P89.00 P0.10
Cabbage Kimchi 3 Kilo P350.00 P1.00
TOTAL RAW MATERIAL COST 3.35
SUPPLIES (PACKAGING)
Cellophane 2 Piece 20.00 P0.16
Brown Bag 2 Pack 15.00 P0.30
Plastic 1 Pack 10.00 P0.10
Logo 4 Piece 13.00 P1.30
TOTAL FOH 1.78
LABOR
Labor Units Price per Unit
Production 92 1.55
TOTAL COST 6.68
Selling Price 7.00

Variable Cost 6.68

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PROMOTION

A newly proposed product must be easily identified by possible consumers.

Therefore, the proponents conducted promotion strategies for the business.

Chebunds

The proponents will use the Bundling Price Strategy. It is combining two or more

products in one reduced price. Cheebols’ price is P7.00 each so the proponents decided to

use Bundling when the customers are willing to buy 3 Cheebols with a price of P20.00.

The proponents will prepare pictures of Korean Idols where the consumers will get the

chance to pick their preferred picture for free. The proponents believe that it will help to

attract more potential customers since Korean Hallyu is very distinguished in the chosen

location.

Online Promotion

The proponents have made an official Facebook page which had helped them

increase product awareness not just in their target market and desired location, but also in

the whole province of Batangas. The enterprise also gained 161 likes on their official

page.

For their promotion strategy, the proponents also made a commercial video to

boost their advertisement in promoting the product. The theme of the commercial video

was inspired by the K-drama hit “Goblin” in which the woman and man in the video were

about to cross their paths to each other, but instead of them being romantic just like in the

original video, the Goblin man ended up stopping the time and eating all the Cheebols the

woman bought for herself, after eating all the Cheebols, the Goblin made the time
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continue and acted like he did not eat the woman’s food and continued walking. The

commercial video lasted for about 1 minute, in result; it gained 483 views and 122 likes.

That way, the proponents’ customers were entertained about the video and share to others

in their Facebook accounts and specially, other costumers were aware about the existence

of the product.

Bazaar
The proponents joined in the Young Entrepreneurs Bazaar last February 13-14,

2018. The company was able to sell 520 pieces of Cheebols. During this event, they took

the opportunity to do some promotional gimmick as follows:

 “Collect your Oppa”- in every purchase of the product the consumers gain a

chance to draw from the different pictures of Korean idols, the objective of the

game was to accumulate four pictures of the same oppa to win a free Cheebols.

 “Kimchi Mo ‘To”- as bundling strategy the proponents sold three Cheebols

with drinks for the price of Php 30.

 “Four the Win”- to join the raffle, the consumer will pay 2 pesos for the chance

of receiving Korean posters and post cards.

 “Hanbok Joo”- targeting the Korean fans, the company offered the chance to

wear and experience the national costume of Korea for only 20 php.
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PEOPLE

Foodpreneurial Enterprises is consisting of five proponents who are responsible

for doing their assigned tasks. Ms. Leidee Sanchez as the General Manager who is

responsible for overall operations. Ms. Dessiree Anne Bitgue for the Production. Ms.

Keith Denissie Marco is responsible for financial aspects for fixing the budget for the

business. Ms. Christine Donna Catimbang and Mr. Michael Mueco are the one who are

assigned for making the product known to the market through advertising personally and

even through the use of social media. By doing it so, the enterprise will achieve its

common goal towards the success of the business.

PACKAGING

The proponents packaging is composed of cellophane and brown bags. The

proponents choose the packaging wherein it will cost less and affordable. They also

consider the convenience of the consumers in the best way for them to hold and eat the

product. Since it is an “all in one” product, it would probably achieve customers’

satisfaction in taste and preferences in Korean Foods. Through sales promotion, the

proponents can influence the buying behavior of the consumer by creating designs on the

bag itself with Korean words & pictures that can attract the purchasing power of the

potential consumers. The proponents are also planning to venture in bundling price

strategy wherein customer can purchase three Cheebols for the price of P20.00.
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The Foodpreneurial Enterprise Logo

Figure 1. Logo of the Company

The business logo represents the branding of the food products which refers as

communicating the quality itself. The design concept is simple yet nice and symbolic.

The outer design is oval, representing that partnership business represents unity and

diversity among owners. The colors of the symbol have been carefully selected. The

inner circular design is painted in yellow color, a vibrant and positive color that depicts

the owners’ vision for the enterprise which is to develop strong bond between

entrepreneurs and their customer, it also depicts happiness in serving quality product in

their customers. The logo has a brown ball which was already bitten which represents the

irresistible deliciousness of the Cheebols that will make you want to bite which is

connected to the picture of a lips ready to devour the Cheebols. The letters were also

written in Hang-gul (Korean language) as well as in English translation which means

“Kimchi Fried Rice Balls”, this implies that the good product have a connection within

the Korean culture.

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CHAPTER III
OPERATIONAL PLAN

In this chapter, the proponents will discuss the product process, inventory policy,

raw materials, manpower and quality control requirements.

Production Process

Step 1: Combine the regular rice and glutinous rice and cook together.

Step 2: Prepare the ingredients needed, kitchen utensils, working area and raw

materials in cooking the Cheebols.

Step 3: Sauté the onion and garlic together with the ground pork. Add the mixed

vegetables (green peas, carrot and corn).

Step 4: Add the cooked rice. Mix with Korean Kimchi and Korean Pastes needed.

Step 5: Carefully mix the rice until reddish orange color will be seen.

Step 6: Set aside and cool down the Kimchi Rice. Start making the breading for

Cheebols.

Step 7: Scoop 1 tablespoon of rice and shape it in a ball form, adding cheese in

the center.

Step 8: Dip the ball in the flour. Next, in the beaten egg, And lastly, in the

breadcrumbs.

Step 9: Heat the pan.

Step 10: Deep fry the ball, cook until golden brown and let it cool down.
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Production Process

Combine the regular Prepare the ingredients Sauté the onion and
rice and glutinous needed, kitchen utensils, garlic together with
rice and cook working area and raw the ground pork. Add
together. materials in cooking the the mixed vegetables
(20 mins) Cheebols (15 mins) (green peas, carrot and
corn). (15mins)

No Yes Add the cooked rice.

Mix with Korean
Kimchi and Korean
Pastes needed.
Quality Control (5mins)
(checking of the taste
and appearance)

Packaging Mix the rice, carefully

until reddish orange
color will be seen.
Finished (10mins)
Deep fry the ball, cook Goods
until golden brown, let
it cool down. (10 mins)
Quality Control
(checking of the taste
and texture)

Dip the ball in

the flour.
Heat the pan. (5 mins) No Yes
Next, in the
beaten egg
and lastly, in
Scoop 1 tbsp. of Kimchi Rice and Set aside the Kimchi
breadcrumbs.
shape it in a ball form, adding rice and let it cool.
(5 mins)
cheese in the center. (5 mins) (15mins)
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Inventory Policy

Foodpreneurial Enterprise will use First-In, First-Out (FIFO) policy wherein the

products sold first to the consumers are the oldest stocks of the products due to the

limited time set of the food because when it lasts longer over the given set of time, the

taste and structure of the food will change. It is applicable to the enterprise because it will

result in avoiding perishable products, so it will not end up with unsellable spoilage.

Raw Materials Requirements

Based on the quality of the ingredients, the proponents can produce 459 pieces of

Cheebols. The proponents purchased the main ingredient, Kimchi, from the K-Mart on

Laguna to produce their product. The other ingredients came from the Tanauan Public

Market. Below are the main ingredients needed to make 92 pieces of Cheebols per day

with their corresponding unit cost.

Table 4. Raw Materials Requirements

RAW MATERIALS
Unit
Materials Quantity Unit Amount
Price
Flour 1 Kilo P40.00 P0.02
Cornstarch ½ Kilo P15.50 P0.02
Eggs 14 Piece P70.00 P0.09
Sweet & Sour Sauce 1 Bottle P28.65 P0.05
Vegetable Oil 2 Liter P90.25 P0.10
Breadcrumbs 1 Kilo P115.00 P0.04
Quickmelt Cheese 200 Gram P59.00 P0.05
Pork Giniling 1 Kilo P240.00 P0.45
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Glutinous Rice 1 Kilo P105.00 P0.20

Rice 2 Kilo P200.00 P0.50
Corn 1½ Kilo P30.00 P0.15
Green Peas ¼ Kilo P30.00 P0.15
Carrot 3 Piece P17.33 P0.15
Onions 1 Pack P10.00 P0.02
Garlic 1 Pack P10.00 P0.02
Pepper 1 Pack P10.00 P0.02
Magic Sarap 1 Pack P10.00 P0.02
Sunchang
500 Gram P123.00 P0.10
Kotchojang
Ssamjang 500 Gram P110.00 P0.10
Dwenjang 500 Gram P89.00 P0.10
Cabbage Kimchi 3 Kilo P350.00 P1.00

Manpower Requirements

The Foodpreneurial Enterprise will need two personnel. Two persons will manage

the overall operation from production to actual selling. The production man power will

require two labor forces to maintain the production process and the quality of the product.

The selling will be handled by two personnel as well who will push the product into the

market.

Table 5. Manpower Requirements

Allowance (per
Position Duties
month)
Preparation of
Production ingredients and P 350.00
producing Cheebols.
Explanation of the
Sales product to the P 350.00
customer and seller
 27

Quality Control Requirements

The Foodpreneurial Enterprise assures that the final product from raw materials,

process control and up to Finished Product Inspection have the right consistency, right

color, and acceptable appearance. If the product failed in the primary inspection, the

procedure is repeated to pass the proponents’ standards to reduce operation cost.

The raw materials must have high quality, neatly sealed in cans and bought in

trusted stores or markets. The other information that are needed are the shipping and

storage information, shelf life, and handling directions.

The proponents will ensure that every ingredient maintains its quality by

implementation of strict process control parameters during production, all processing

stages, and that finished products are packaged and stored safely.
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CHAPTER IV

ORGANIZATIONAL PLAN

Organization Chart

Leidee Sanchez
GENERAL MANAGER

Keith Marco Michael

Dessiree Christine Mueco
Bitgue Catimbang
MARKETING
PRODUCTION FINANCE MARKETING AND
MANAGER MANAGER MANAGER RESEARCH
MANAGER

Job Description

General Manager

The General Manager of the Foodpreneurial Enterprise will be the one to monitor

the work of all the staffs. Oversee daily operations for enterprise. Insure the creation and

implementation of a strategy designed to grow the business. Coordinate the development

of key performance goals for functions. Ensure the development of tactical programs to

pursue targeted goals and objectives. Ensure overall delivery and quality of the unit's

offerings to customers. One of the responsibilities is to ensure that the enterprise reaches

its organizational goals. She will evaluate the success of the organization and maintain
 29

awareness in internal of the company. She checks the performance of her staffs/co-

partners’ and resolves the problems relating to the routine operations. The General

Manager is responsible for overseeing and supervising a company's activities and

employees. Small businesses rely on the business manager to keep workers aligned with

the goals of the company.

Production Manager
The one to oversee the production process, drawing up a production schedule,

ensure that the production is cost effective, decide what resources are required, estimate

costs and set the quality standards, monitor the production processes and adjust schedules

as needed, be responsible for the selection and maintenance of equipment, and monitor

product standards and implement quality-control. Duties and responsibilities include

formulating policies, managing daily operations, and planning the use of materials and

human resources. He also monitors the business to ensure that the whole operation

whether on labor, production, and variable and cost, inventory is sufficient.

Finance Manager

A financial manager is a person who takes care of all the important financial

functions of an organization. The person in charge should maintain a far sightedness in

order to ensure that the funds are utilized in the most efficient manner. Her actions

directly affect the Profitability, growth and goodwill of the firm. Financial managers’

main responsibility used to be monitoring a company’s finances, but they now do more

data analysis on ideas to maximize profits.

 30

Marketing Manager

The who will be managing all marketing for the enterprise and activities within

the marketing department, developing the marketing strategy for the enterprise in line

with business’ objectives., and coordinating marketing campaigns with sales activities.

The one who identifies, develops, and evaluates marketing strategy, based on knowledge

of establishment objectives market characteristics, and cost and mark-up factors.

Planning and implementing promotional campaigns. Manage and improve lead

generation campaigns, measuring results. The duties are also to formulate, direct and

coordinate marketing activities and policies to promote products and services.

Marketing and Research Manager

The Research Manager conceptualize primary research studies to address insights

required for decision making related from the demands of consumers, perform statistical

analyses (as needed), document outcomes, prepare reports and present results with the

goal of influencing actionable recommendations for multiple levels of management and

create new reports as appropriate on the industry, how it’s evolving, and the implications

for Partners. Market Research Manager reviews the collected data and creates a strategy

to penetrate the market.

Legal Form of Ownership

The proponents decided to use general partnership as the form of business

organization. General partnership offers relative freedom and flexibility of action in

decision making and it combines special skills, expertise and experience of the partners.

By the contract, the proponents bind themselves to contribute money, property or

 31

industry to a common fund with the intention of dividing the profits. All partners are

liable for all the debts incurred by the partnership and the allocation of profit ad losses in

equally distributed among the partnership. The proponents considered the following

advantages in choosing this form of ownership:

 Easy to start. The business is easy to establish, and start-up costs are low. More

capital is available for the business.

 Partnerships do not pay income tax. It passes through to the partners. Partners

are not considered employees for tax purposes. Individuals in partnerships may

receive more favorable tax treatment than if they had founded a corporation.

 General Partners. General partners are the ones mainly responsible for business

operations; they are also jointly and severally liable for all the debts and

obligations of the business.

 Strategic alliance. Involves shared or transferred decision-making power.

Personnel Policies

 Smoking is strictly prohibited in the production area.

 The dress code of the employees will be strictly observed by the management.

Hairnet, caps and aprons are required when working in the production area.

 All employees should remember "CLEAN AS YOU GO (CLAYGO) policy at all

times. All should be responsible for the cleanliness of the production area.

 An employee should inform the management one day before the leave of absence.

 The proponents are required to be present according to their working schedule.

 Personal hygiene of the employees is very important.

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 Wearing of accessories in the production area is not allowed.

 The proponents are allowed to wear smart casual attire.

 Once hired, employees typically go through an orientation and training process to

learn about their new employer and how their job function fits into the overall

goals of the business.

 Every day the employees have one-hour lunch break and 30 minutes’ break. It

includes the 8-hr. work of the employees a day.

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CHAPTER V

FIINANCIAL PLAN

Start-up Expense and Capitalization

Start-up costs and capitalization for Foodpreneurial Enterprise will include

working capital, sales promotion, tools and equipment. A total cost of Php 3,500 will be

divided to the five partners. Most of this amount will be used to produce Cheebols,

materials and fund start-up operating cost.

Sources of Funding

The proponents considered various sources of funding that are attainable in order

to raise capital for the finance will be the proponents’ savings.

Personal Savings

There are several ways to source fund to start the business. However, the

proponents can afford the amount needed so they decided to use their own money. The

proponents contributed capital from their own savings and allowances.

Family and Friends

Borrowing money from an immediate family members and close friends is way

easier for the proponents to be able to gather funds to conduct production activities.

Family and friends are also considered as source of funds.

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Manufacturing Cost

The following tables shows the direct labor and factory overhead cost of product

per piece.

Table 6. Total Manufacturing Cost per Product

Direct Material Cost P 3.35

Direct Labor Cost 1.55
FOH 1.78
Total Manufacturing Cost P 6.68

Table 7. Break Even Analysis

Total Variable Cost 6197.92

Total Fixed Cost 2850.00
Unit Breakeven Point 65
Daily Breakeven Sales 452.40
Monthly Breakeven Sales 9047.92

The monthly break-even sales are based on 20 selling days per month. For the

two months of operation, the proponents have the total selling days of 20. It only shows

that they have 10 selling and production days per month to make sure that the product

will be sold considering its shelf life.

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Income Statement for Year 2018

Foodpreneurial Enterprises
Statement of Comprehensive Income
January - December 2018
Q1 Q2 Q3 Q4
Sales 19,579.00 22,519.00 25,736.00 30,536.00
Less: Cost of Sales 8,229.00 8,379.00 8,979.00 9,679.00
Gross Profit 11,350.00 14,140.00 16,757.00 20,857.00
Less: Operating Expenses
Transportation Expense 770.00 800.00 850.00 900.00
Salaries and Wages 1750.00 1750.00 2100.00 2450.00
Research and Development 350.00 300.00 350.00 400.00
Utilities 70.00 100.00 130.00 160.00
Marketing and Promotion 378.00 378.00 400.00 500.00
Supplies Expense 100.00 120.00 150.00 350.00
Rent Expense - Equipment 50.00 50.00 100.00 150.00
Total Operating Expenses 3,468.00 3498.00 4080.00 4910.00
Earnings before Interest and 7,882.00 10,642.00 12677.00 15,947.00
Taxes
Net Income 7,882.00 10,642.00 12677.00 15,947.00

Figure 2. Income Statement for Year 2018

Future Business Prospects

The proponents are planning to introduce different side dish of Korean food that

will be mixed in Rice balls instead of Kimchi only. The suggestions of the consumers are

listed though it will taste differently due to the taste of other side dish. The proponents

want to consider it and just name the product differently. There are also planning to offer

famous Korean drinks that will surely beloved by the consumers especially the Korean

fanatics. They wanted to have a standee of Korean actors, trademarks of Korea and other

freebies to have a lots of return costumers.

 36

The proponents will also be more active in online promotion to increase product

awareness and for the product to be known not just in Tanauan City but also in other

places in Batangas. Marketing strategy at First Asia Institute of Technology and

Humanities will also be given attention for the plan of business expansion after at least

three (3) successful years of operation. The proponents will also consider the possibility

of franchising the business whenever there will be a proposal for franchising

Foodpreneurial Enterprise.