Section 1: School Supply Vending Machine (SSVM)

TABLE OF CONTENTS

Executive Summary

SECTION 2:

1.0 DESCRIPTION OF BUSINESS

 Description of the venture, Product(s) and/or Service(s)

 Mission statement

 Business model

2.0 DESCRIPTION OF INDUSTRY

 Types of industry

 Future outlook and trends of industry

 Analysis and competitors

 Trends and market forecast

3.0 TECHNOLOGY PLAN

 Description of technology

 Technology Comparison

 Commercialization requirements

4.0 MARKETING PLAN

 Target Market

 Business Barriers and Plans to overcome them

 Product and Distribution Channel

 Competition
  Promotion and Promotional Budget

 Pricing and Sales Forecast.

5.0 FINANCIAL PLAN

 Sources and applications of funds and statements

 Tools and Equipment

 Pro Forma income statement

 Pro Forma cash flow statements

 Pro Forma balance sheet

6.0 PRODUCTION (OUTSOURCING) PLAN

 Manufacturing process (amount subcontracted)

 Physical plant

 Machinery and equipment

 Suppliers of raw materials

 Outsourcing Aspects

7.0 ORGANIZTION PLAN

 Form of ownership

 Identification of partners and or/principal shareholders

 Management team background

 Roles and responsibilities of members of organization

 Organizational structure

8.0 OPERATIONAL PLAN

 Description of company’s operation

  Flow of orders and goods

 Exit strategy

9.0 SUMMARY

SECTION 3:

APPENDICES EXHIBIT

Exhibit A – Resumes of principles

Exhibit B – Market Statistics

Exhibit C – Market Research Data

Exhibit D – Company Logo

Exhibit E – Competitive Price Lists

Exhibit F – Leases and Contractors

Exhibit G – Supplier Price LIsts

Executive Summary

Harry’s Company is a new organization in the Philippines. The company produces a

machine which can help mostly in the worker to easily do their job especially to the

contractors, furniture shop and many more that needs this machine to lessen their time

of work. Harry’s Company come up with the new design of vending machine which they

called it a School Supplies Vending Machine. This School Supplies Vending Machine is

the answer to those who lacks workers and also to lessen hustle. Also the company

provides the safety and comfort of the users. A vending machine is a machine that

dispense everything from drinks and snacks to newspapers and DVDs. A paper bill or a

coin or even credit card can be used as a payment form for the vending machine. These

machines are can be placed wherever it is needed more. Most of the vending machines

that exist are dispenses drinks and snacks. Our School Supplies Vending Machine is

different for it dispenses school supplies needed in schools or even in universities.

Harry’s Company will establish one outlet at the market place of Calaca,

Batangas, where many industries need our product for their work. Later, our effort will

be further development of more retail outlets in many town and cities.

The plan is prepared to obtain location for the initial launch of this concept. The

financing, in addition to the capital contributions from shareholders, will allow Harry’s

Company to successfully open and expand through year.

 Harry’s Company will be led by the management team of David Basil

Macatangay and Emmanuel Harold De Villa. These management team are the student

of Batangas State University Balayan where they have a combination of excellent

education and good work.

1.0 Description of Business

 Description of the Venture

Having or recruiting a worker or let’s say a trusty worker now a days, todays

generation’s trust rate truly was low. By welcoming technology into rooms, people

can take advantage of this —benefitting from increased engagement and better

learning retention as a result. School Supply Vending Machine also termed as

SSVM. It is a vending machine that stores different kinds of school supplies that will

make things easy for students.

 Products and/or services

Being someone that sells school supplies, truly was boring. Not all the time there

were buyers, so the man on duty was get bored, and not just that you wouldn’t

know if the man on duty was truly trust worthy. Our product is a machine that

gives less work to the owner, for it sells out different kinds of school supplies,

thereby making it comfortable for the owner to have his/her sold product safely.
 Mission Statement

To be a progressive business in the field of technology composed of dedicated,

passionate and hardworking individuals whose corporate mission is to manufacture

and deliver with excellence compliance to the customers as the business sell the

highest quality product.

 Business Model

Key Activities Key Partners Key Resources

Product Development Electronics Company Programmer and

Developer

Marketing and Sales Product Distributor Creative People and

Advertiser

Customer Relationship Value Proposition Costumer Segment

Management

Personal Interaction Easy and Comfortable for Schools

the owner and also the

students

High Technology Outdoors

High Quality Standard

Channel Cost Structure Revenue Streams

Direct: consumers bought Variable Cost: materials/ Payment Revenues

the machine directly to spare parts, operating

the manufacturer cost

Indirect: consumers Fixed cost: program Advertising

bought the machine to

 the distributors

In-store purchases

2.0 Description of Industry

 Type of Industry

The business belongs to the manufacturing industry in which will manufacture a

vending machine that will sold different kinds of school supplies on different schools.

Manufacturing industry are industries that manufacture and process products. The

business will use various technologies and methods to manufacture the final product

that can serve as a finished good for sale to customers.

 Future Outlooks and Trends of Industry

Future Outlooks

The manufacturing industry is still one of the largest contributors to the world

economy despite the phenomenal growth of the services sector. Even though the

manufacturing industry is nearing its saturation point, the business shouldn’t stop

growing and innovating. Several innovations that the business is planning for the

future are automation, robotics, lean manufacturing, analytics, and outsourcing so as

to drive the growth of the product in the projector line of business.

Trends of Industry

Accessibility & availability and time-saving are important in terms of industries.

With technology in our society or community, students started to learn using this
 technologies, making them a huge growth in our society. With the growing of this

methods, it became a huge click and spread incredibly.

 Analysis of Competitors

Primary Competitor

The School Supply Vending Machine’s design is new to the market. Existing

designs were made for other products such as coffee, softdrinks, junk foods,

chocolate, etc. With its design, there is no primary competitors but with regards to its

target market, it does have.

Secondary Competitor

The School Supply Vending Machine’s secondary competitors are those that

manufactures the existing design of vending machines that are currently available in

the market. These competitors may offer a high- or low-end version of your product,

or sell something similar to a completely different audience.

 Opportunities

Compared to previous way of selling school supplies, the School Supply Vending

Machine has several distinct advantages -- including the ability to sold different kinds

of school supplies easily, less time consuming and also less human intervention.

3.0 Technology Plan

 Description of Technology
 With the use of technology we thought of using a vend type machine to

make things easier for the upcoming students to not consider the supplies in school

a problem. With this technology or innovation a huge problem of students is secured

and cleared.

 Commercialization Requirements

A website will be created as well as social media advertisements will be used as

an online means of disseminating the information of the product. Brochures and

flyers will also be used as part of the product’s marketing. In this way, potential

buyers will be able to have an information and understanding about the product and

how it will function.

4.0 Marketing Plan

 Target Market

Schools and universities are the potential target market of the School Supply

Vending Machine.

 Business Barriers and Plans to overcome them

There are already existing vending machines and has different purposes. But this

product is new due to its design and functionality. Through research and investing in

technologies that will further improve the product, the business is assured for its

success. Additionally, the customer’s insights will be considered so as to ensure that

the products exceeds customer’s satisfactions.

 Product and Distribution Channel

A plant will be bought to serve as the manufacturing plant of the product whereas

the manufactured and programmed product will be directly delivered to its main store

and partner stores. Deliveries will also be available so as to ensure excellence

compliance to the customers as the business sell the highest quality product.

 Customers and Proposed Location

Our product, School Supplies Vending Machine will be offered mostly on schools

and universities since those are the only places needed it with regards to the

product’s market.. On the other hand, the proposed location of the business will be

in Batangas City since it is the center for all provinces and is the most accessible to

all potential buyers.

 Competition

Since there are existing competitors, competition is still present. But through

advertisements, being dedicated as well as being committed and with perseverance

to pursue success, the business is assured to be able to compete with its

competitors. Highest quality, reliability and convenience will be considered so as to

attract customers.

 Promotion and Promotional Budget

 Online advertisement will be used as a promotional tool that will help the

business attract and inform customers about the product. With a budget of Php

10,000.00, the business will be able to develop an engaging website with support

feature for customer’s inquiries as well as will be able to have brochures and flyers

to be disseminated to the market.

 Pricing and Sales Forecast

The price will be based on the manufacturing cost and the cost of programming

the product to perform its intended function that is shown in the financial plan below.

The selling price will be Php 28,000.00.

5.0 Financial Plan

In order to start up the business, a total amount of Php 100,000.00 will be needed as

an initial investment. An equal amount of Php 50,000.00 will be contributed by the two

potential investors. The contributed money will be from financial institutions such as

bank and lending corporation while others is from financial assistance of their families.

The contribution of the partner will be as follows:

Contribution of each partner

Name of partner Contribution (Php)

David Basil S. Macatangay 50,000.00

Emmanuel Harold De Villa 50,000.00

 Total 100,000.00

Shown below are the start-up expenses of the company.

 Tools and Equipment

UNIT
QUANTITY DESCRIPTION UNIT TOTAL PRICE
COST/PRICE

5 Dispenser Pc 3,000.00 15,000.00

Complete wiring
1 Pc 2,000.00 2,000.00
accessories

1 Metal Sheet Pc 2,000.00 2,000.00

1 USB Hub (by 2s) Pc 1,000.00 1,000.00

1 Other accessories Pc 2,000.00 2,000.00

Total: Php 22,000.00

 Pro Forma Income Statement

 School Supplies Vending Machine

Five Year Pro Forma Income statement

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 8,585,900 9,965,000 10,588,000 10,999,800 12,305,000

Cost of Goods Sold 23,999,000

24,567,000 26,789,000 27,000,900 27,975,310

Operating Income 125,000 225,000 275,000 325,000 42,000

Expenses 1,000,000
1,500,000 2,000,000 2,500,000 3,000,000

Administrative 500
550 600 650 700

Marketing 1,300,000
1,800,000 2,300,000 2,800,000 3,300,000

 Pro Forma Cash Flow Statement

HARRY's COMPANY

Five Year Pro Forma Income Statement

Year 1 Year 2 Year 3 Year 4 Year 5

 Sales 6,688,625 7,400,000 8,550,000 9,750,000 15,000,000

Cost of Goods Sold 18,325,000 18,500,000 19,000,000 19,500,000 20,500,000

Operating Income 100,000 150,000 200,000 250,000 300,000

Expenses 1,120,500 2,560,800 3,500,500 4,100,600 5,550,000

Administrative 500,00 550,00 600,000 650,000 700,000

Marketing 1,200,000 1,500,000 2,000,000 2,200,000 2,500,000

Total Expenses 1,000,000 2,500,000 3,000,000 3,500,000 4,000,000

Earnings Before 4,000,000 4,000,000 3,800,000 4,500,000

3,550,000
Interest and Taxes

Taxes 523,500 530,000 580,000 620,000 620,000

Net Income 600,500 650,000 680,000 700,000 720,000





Pro Forma Cash Flow Statement

Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received 550,000 1,000,000 1,500,000 2,000,000 2,500,00

Cash from Operations 100,000 150,000 200,000 250,000 300,000

 Cash Sales 650,000 650,000 675,500 700,000 7500,000

Subtotal Cash from Operations 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

Additional Cash Received 25,000 30,000 35,000 40,000 45,000

Sales Tax, VAT, HST/GST 10,000 15,000 18,000 19,000 21,000

Received

New Current Borrowing 0 0 0 0 0

New Other Liabilities (interest- 250 350 450 550 650

free)

New Long term Liabilities 1,000 1,500 1,800 2,000 2,500

Sales of Other Current Assets 18,325 20,000 22,000 23,000 25,000

New Investment Received 15,000 17,000 23,000 25,000 30,000

Subtotal Cash Received

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

 Pro- Forma Balance Sheet
HARRY'S COMPANY
For 2018
(All number in Php)

ASSETS Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets 18,325.00 21,000 22,500 23,000 25,000

Cash 20,000 25,000 26,000 27,000 30,000

New accounts receivable 15,000 20,000 22,500 23,000 25,000

Inventory 18,000 20,000 25,000 28,000 30,000

Temporary Investments 15,000 20,000 25,000 30,000 35,000

Prepaid Expenses 50,000 55,000 50,500 60,000 65,000

Total Current Assets 136,325 161,000 171,500 191,000 210,000

FIXED ASSETS 100,000 120,000 130,000 140,000 150,000

Long Term Investments 50,000 60,000 70,000 80,000 90,000

Land 10,000 15,000 20,000 25,000 30,000

Buildings (net of depreciation) 35,000 45,000 55,000 65,000 75,000

Plant & Equipment (net) 65,000 70,000 75,000 80,000 90,000

Furniture (net) 50,000 55,000 60,000 65,000 70,000

Total Net Fixed Assets 310,000 365,000 410,000 455,000 505,000

TOTAL ASSETS 620,000 730,00 820,000 910,000 1,010,000




LIABILITIES 2,000 3,000 4,000 5,000 6,000

Current Liabilities 2,500 5,000 5,500 6,000 6,500

Accounts payable 5,000 5,500 6,000 7,000 8,000

Short- term notes 10,000 11,000 12,000 13,000 14,000

Current of long term notes 15,000 16,000 17,000 18,000 19,000

Accruals & other payables 7,000 8,000 9,000 10,000 11,000

Total Current Liabilities 41,500 48,500 55,500 59,000 63,500




Long Term Liabilities 5,000 6,000 7,000 8,000 9,000

Mortgage 5,500 6,500 7,500 8,500 9,500

Other long- term liabilities 7,000 8,000 9,000 10,000 11,000

Total Long Term Liabilities 17,500 20,500 23,500 26,500 29,500

 



SHAREHOLDER’S EQUITY 50,000 60,000 70,000 80,000 90,000

Capital stock 100,000 200,000 300,000 400,000 500,000

Retained earnings 40,000 50,000 60,000 70,000 80,000

Total Shareholder’s Equity 55,000 65,000 75,000 85,000 95,000

TOTAL LIABILITIES & 145,000 325,000 505,000 605,000 765,000

EQUITY

6.0 Production (Outsourcing) Plan

 Manufacturing Process (Amount Subcontracted)

 Physical Plan
 RAW

FINISHED MATERIAL WAREHOUSE

AREA
PRODUCT

PRODUCTION
AREA

WORKERS
OFFICE ACCOMODATION

 Machinery and Equipment

 UNIT
QUANTITY DESCRIPTION UNIT TOTAL PRICE
COST/PRICE

1 Long Nose Plier Pc 290 290

1 Philips Screw Pc 250 250

1 Wire Striper Pc 300 300

1 Wire Crimper Pc 160 160

1 Magnifier Pc 60 60

Antistatic
1 Pc 50 50
Wristband

1 Soldering Gun Pc 120 120

1 Signal Generator Pc 370 370

Total: Php 1600

 Suppliers of Raw Materials

The raw materials that will be used in manufacturing the product will be coming

from other countries to ensure that all materials are in highest quality. Aside from this,

local manufactures will also be tapped so as to be a reliable source of raw materials.

 Outsourcing Aspects
 Outsourcing will be considered but with least priority. In which, an outside party will

be hired in the company to perform services and create goods that we all are familiar

with just like home services. Outsourcing process will be overtaken by companies for

cost measurement.

7.0 Organization Plan

 Form of Ownership

FORMS OF
OWNERSHIP

Sole
Corporation Franchise Partnership
Proprietorship

 Identification of Partners or basically Shareholders

SSVM (School Supply Vending Machine) has their people behind those

productivity, Mr. David Basil Macatangay and Mr. Emmanuel Harry De Villa who are

technically the shareholders of the company. Those people manage a big part to

the company because they are the major people who manage the business

 Management Team Background

As the company experienced one year of management, they have done

and learn a big part to manage a strategic plan for the organizational team. A

variety of stakeholders ensure that those duties and responsibilities of staff and
managers were clearly done in a day. A productive day must have that

organizational involvement. Strategic team work and plan would help to be

more productive for a business.

 Roles and Responsibilities of Members Organization

 Mr. David Basil Macatangay. A chief executive officer (CEO) is the highest-

ranking executive in a company, and his primary responsibilities include

making, major corporate decisions, managing the overall operations and

resources of a company, and acting as the main point of communication

between the board of directors and corporate operations. A CEO often has a

position on the board; in some cases, he is even the chair person. A board of

director, his role is to perform the duties of strategic planning and oversight.

While these terms are used often, it’s important not to diminish these duties,

as they are the backbone of successful business planning.

 Mr. Emmanuel Harold De Villa. He is also a board of director which also

hold the duties in doing a strategic planning for the company. He manages

every detail about promoting the products. Clear and safe planning was also

brought by the board of director. Board members expect their fellow board

directors to be willing to ask tough and probing questions to vet all sides of an

issue. His also one of the busiest and well-known people in an organization is

the corporate secretary. e. Corporate secretaries are considered to be legal

representatives of the corporation.


  Organizational Structure

Marketing Manager Finance Manager Operations Manager

8.0 Operational Plan

 Flow of Orders and Goods

HARRY’S COMPANY

Store/Shop
Website
(Batangas City)

Pick-up Delivery Delivery

 Exit Strategy

The exit strategies which plan for the company after a year of business are to

research and study, and also to sell everything to be able to pay some of the remaining

debts. It is a simple approach, but also the best way to have an exit strategy. Since

some of your competitors are matching the business that you have, selling would

probably come to your mind and losing being at a disadvantage is no way near you. The

second exit strategy is to merge with other businesses and left the business with the

other member of the company that will able to sustain progress.

9.0 Summary

From the survey conducted, it shows that those students that doesn’t bring school

supplies has a high percentage. As a solution, this product or machine will be a way for

students to get what school supply they needed. With this machine it can supply

students school supplies with ease.

Section 3: Appendices (exhibits)

 Exhibit A – Resumes of Principals
MACATANGAY, DAVID BASIL S.
Dacanlao, Calaca, Batangas
davidbasil.macatangay@yahoo.com
09169917059
Objectives:

 To be able to join a company that would give me chance to use the knowledge that I
gained from school and likewise to improve my skills as well as open opportunities
for self-improvement and global learning.
 To be able to join a company that would expose me to various technologies that
would not only uplift my personality and professional growth but would also enrich
my knowledge and skills.

Educational Background:

Secondary : Dacanlao Gregoerio Agoncillo Natioanal High School

Dacanlao, Calaca, Batangas

Seminar and Workshops:

 Acquiring Instrumentation and Control Knowledge through the Introduction of Basic
Calibration Measurements and It’s Application
- October 7, 2016
 Fundamentals of Instrumentation and Control – November 18, 2016
 Basic Concepts and Principles of Electrical Machines
- November 29, 2016
Training Experience:
 DMCI Power Plant Incorporation.
- May 2017 – June 2017
Skills:
 Can work as a team and as an individual
 Hardworking and Goal oriented
 Flexible and has a good interpersonal relationship
References:

 Dr. Marian Panganiban

Department Head of CIT
BatStateU- Balayan
0935-808-0882
 Mr. Ruel Panday
OJT Coordinator
BatStateU- Balayan
0905-748-8822
DE VILLA EMMANUEL HAROLD D
Pantay, Cawong Calaca Batangas
Harold_Devilla11@gmail.com
0905-700-2396

Objectives:

 To be able to join a company that would give me chance to use the knowledge that I
gained from school and likewise to improve my skills as well as open opportunities
for self-improvement and global learning.
 To be able to join a company that would expose me to various technologies that
would not only uplift my personality and professional growth but would also enrich
my knowledge and skills.

Educational Background:

Secondary : Dacanlao Gregoerio Agoncillo Natioanal High School

Dacanlao, Calaca, Batangas

Seminar and Workshops:

 Fundamentals of Instrumentation and Control – November 18, 2016
 Basic Concepts and Principles of Electrical Machines
- November 29, 2016

Training Experience:
 Holcim Philippines
- February 2017 – May 2017
Skills:
 Can work as a team and as an individual
 Hardworking and Goal oriented
 Flexible and has a good interpersonal relationship
References:

 Dr. Marian Panganiban

Department Head of CIT
BatStateU- Balayan
0935-808-0882
 Mr. Ruel Panday
OJT Coordinator
BatStateU- Balayan
0905-748-8822
Exhibit B – Market Statistics

Sales

10%
10%
SHAREHOLDER
10% ADVETISMENT
60%
BENEFITS
10%
DELIVER
WARRANTY

Exhibit C – Market Research Data

The market statistics for the product under the company of HARRY’S COMPANY

has shown the graphical representation from the year of 20__ to 20__. As the company

started the business, the presented graph has shown the loss financial of the company.

There will be 65% percent for the shareholders of the company, 10% will be for

advertisement and the other 10% will be for warranty. Benefits will be 8% and 7% for

the deliver
Exhibit D – Company Logo

Exhibit E – Competitive Price Lists

Price is one the major strategies of a business to promote and sell their products,

as HARRY’S COMPANY aims to satisfy not just the power and capability of the

product, the price were still considered. Competitive price list perform as a strong

strategies to outperform other businesses of Innovated machines. The increase of price

might be the factor to make the costumer purchase the product so right price list should

give.
 UNIT
 QUANTITY UNIT DESCRIPTION
PRICE
1 Pc Electric Motor ₱1, 500

1 pc Circular Blade ₱800

1 pc Spring ₱70

2 pc Indicator light ₱200

1 pc Switch ₱150

4 pc Bolts and knots ₱200

3 Meters Wire ₱80

12x12 Inches Metal sheet(thick) ₱1,500

1 pc Toggled switch ₱1,000

Total: ₱5,500