UNIDAD EDUCATIVA BILINGÜE NUEVA SEMILLA

Subject:
Business Management HL

Presented by:
Daniellie Carrillo
Natalie Ortiz
Maria Grazia Orellana

Teacher:
Miss Lay Wah Carolina Ching Chiang

2018-2019

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 Content Page

1. Business 4
1.1 Business Description 4
1.2 Position of the business in the industry 4

2. Marketing Planning 6
2.1 Consumer profile 6
2.2 Product 6
2.3 Price 10
2.4 Place 11
2.5 Promotion 12
2.6 Process 13
2.7 Physical evidence 15
2.8 People 17

3. Finance 18
3.1 Forecast sales 18
3.1.1 Criterias used to set the forecast 18
3.2 Cash flow 19
3.3 Sources of Finance 20

4. Reflection 21
4.1 Methodology. 21
4.1.1 Rationale. 21
4.1.2 Syllabus to be covered. 21
4.1.3 Sources of information. 21
4.1.4 Collection of data. 21
4.1.4.1 Primary research. 21
4.1.4.2 Secondary research. 22
4.1.5 Tools use to analyzed data. 22
4.1.6 Validity and Reliability. 22
4.1.7 Anticipated difficulties. 22
4.1.8 Action plan. 23
4.1.9 Change in the action plan. 23
4.2 Individual reflection 23
4.2.1 María Grazia Orellana Lopez 23
4.2.2 Natalie Ortiz 24
4.2.3 Daniellie Carrillo 25

5. References 27

6. Appendix 27
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6.1 Appendix 1: Template, surveys for customers 27
6.2 Appendix 2: Prototype of the packaging. 28
6.3 Appendix 3: Testing of the product. 29

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1. Business
1.1 Business Description
MANADA is a new company in the drink industry, located in Ecuador. The
company offers a big variety of teas flavours. With the assurance to be 100% naturals.
The products and everything that involves it, is homemade, such as the manufacturing,
packaging and even the promotion. These facts add a great prestigious to this new
company, because nowadays the natural, and the things that are Earth friendly, become
in something that everybody prefer to consume.

1.2 Position of the business in the industry

STEEPLE ANALYSIS
The lifestyle, demographic, and the trends are something that really affect the
business. Nowadays, a trend is to follow a healthy and fitness diet, so it is common that
those people consume teas during the day because teas have benefits to accomplish that.
For example models drink teas to lose grease and have a good figure to continue
working in that industry. The demographic can also affect the business, for the
different cultures that you can find along the country. Ecuadorian people are not
accustomed to drink tea all the day while asian people that live here in Ecuador drink
only tea.This means that this depend in the education that they received at home and the
different tradition that we have around the world.

In these years the technology is growing really fast. We can find new
technology in machines for the industries. This new technology affects positively to all
the companies. Also we can find new natural methods for the preparation of the teas.
For example MANADA use two different machines, the first is the microwave to dry
the herbs for the preparation of the teas and the other one is the printed, to print the
tags, logos and others, to decorate the packaging of the product.

Ecuadorian inflation over the years had changed when we enter in a economy
crisis.An estimated 2 to 3 million Ecuadorians live abroad, but increased unemployment
in key receiving countries, such as Spain, the United States, and Italy. This situation
caused that we need to counteract expenses so that people who are still in aquator can
buy without any hassle. For example if the rate of inflation increase we can promote
more our products to sell it and get more profits.

Nowadays, not only in Ecuador, also in other countries, the people had changed
their minds. Now people is worried about what they really consume. And if they
observe an action that a company is doing, for example the use of a chemical that affect
their bodies or even the environment. They like consumers can denounce that situation.
Also customers are always looking for a company that is nearer with their customers,

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creating a good environment between them. Here in Ecuador consumers now the most
of them just consume organic products, gluten free, or even vegan products. Because
the education about those ethic consideration as much as for nature as for the planet had
been increasing in the last years.

The government stability nowadays in Ecuador is not completely stable.

Ecuador government is divided in many departments, those have their own agent who
represent the department. So the problem is with the agents. In the last months, many
departments had been changed their agents. Creating to the government an instability.
This situation can affect to the ecuadorian industries. For examples those departments at
the moment to change the agent, sometimes their politics also change. So the industries
must adapt to those new politics, and sometimes they are a bit damaging to the
company.

Ecuador is a country where all the people have to receive the same treatment,
and benefits. Obviously also all people have to follow the same rules, and it does not
matter if the company is small or big. For example, the people of cleaning department
must receive the same benefits as the people of the offices, these benefits include: social
security, a basic salary, and all the bonus for holidays. Also the laws of Ecuador say
that every company must pay for their taxes, and declare taxes.

Ecuador is a country with plenty of fertile soils, apt for crops. Here the
government used to give to the farmers a kit, that includes some fertilizers. These
fertilizers were the only one that they can use, because they did not contain any
pollutant, that could affect the crops, and the life around them. Sometimes the continue
commercialization of some herbs, obligate to the regulation programs, to stop with the
selling of those herbs that are being abuse, in the market. For example the straw, in
Ecuador that is something necessary at christmas, but with the high demand, the
government had to replace it use, for an artificial straw.

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2. Marketing Planning

2.1 Consumer profile

MANADA/natural teas
- Age: All ages.
- Gender: Female and male.
- Social status: Every status. Different products with different prices.
- Income level: Medium- high.

This information match with the table​ ​of the surveys answered. These surveys
were random, they were asked to people from matutine and vespertine. Both of
them with different status, between medium and high. Also the chart allowed to
observe the different genders of the people surveyed. Not only students from
Nueva Semilla were surveyed, also adults. Surveying students and adults, allowed
to the project know about the current consumers of teas. Showing that not only the
adults like to drink tea, nowadays with the new lifestyle of the kids, they also like
all this natural stuff, as are the teas,

2.2 Product
In order to analyse the product that MANADA offers, was necessary the use of
a position map. With this tool is easier to ubicate the expectations about the product,
and where MANADA wants to be. MANADA wants to offer a product that be easier to
pay, but that the quality stay good, and nice for the consume, all these facts comparing
with the competition. ​(Figure 1) . ​Also the team of MANADA created a random survey
for 120 people where was asked what brand of tea they prefer, in order to know what
brand of the competition they like, and create with that the position map. ​(Figure 2)

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 Figure 1: Position map

Figure 2: Which of these brands do you prefer?

MANADA does not want to offer the same product as all the brands of teas do.
That is the reason that they employ an Unique selling point, MANADA implement to
their products something that make them different from the competition. Obviously in
the product (the herbs) was hard to change. But the other things as the packaging, and
the image of the product change the perspective of the consumers of tea. Creating
branding loyalty between the company and the new customers.
Thanks the surveys MANADA obtained information about the way that
consumers like teas. ​(Figure 3, 4, 5)​​ With this information the team is prepared to start
and operate, creating the product for the future selling. It is impossible to cover the likes
and needs of each customers. That was the reason of why MANADA start to cover and

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satisfy the big group first. The questions from figure 3,4,5 are about how the consumers
prefer the product. In order to build up a good environment at the moment to offer the
products, and try to cover the likes of a bigger group of people.

Figure 3: Tea preferences

Figure 4: Do you prefer hot or cold tea?

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 Figure 5: Which of these flavours do you prefer?

In the environment exists a great variety of herbs. Each of them for a specific
use. That was the reason of the question in ​figure 6, ​the results of that question was that
the most of people just consume tea when they are sick. So the team of MANADA
realized that the product that they have to sell is something for the more common
illnesses, for example flu, stomachache, headache, and others. Always specifying in the
packaging for what you can consume the tea packaged.

Figure 6: How often do you drink tea?

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2.3 Price
The moment to set a price to the product of a new brand is really complicated.
Because customers take as a guide the price of the competition. So as a new brand the
only way that people buy the product is follow the prices of the market. Obviously
without creating more costs than profits. But it is not a preoccupation right now,
because is normal that now the company does not create profits in big amounts.
In order to establish a possible quantity to sell. It was necessary the use of a
forecast. Then MANADA used a cash flow, in order to know to know the inflows and
outflows of the company, and know the possible profit for the business. Also was
necessary to know what is the source of finance to know about who are the persons that
provide the capital.
The team of MANADA suggest to create the first profits of the company is
necessary to add a cost-plus pricing. This mark-up pricing can ensure a profit to the
business with each sale that they have. The opportunity to add this extra cost is in the
packaging. MANADA established that more of the capital to create the product, is
going to be for the packaging, because that will be their USP, and the different from the
competition.
At the surveys ​(figure 7), ​MANADA asked to 120 people how much they used
to pay for a box of tea. The people answered $2, a price that MANADA was not
expecting. But with all the new changes, and the innovation of the product people
nowadays is more detailer and appraise the details in a product. Also the fact that the
products of MANADA are 100% natural, and free from preservants. These facts make
to MANADA increase the price, for the time that the herbs take to dry, the handmade
boxes, etc.

Figure 7: How much are you disposed to pay?

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2.4 Place
MANADA use a zero intermediary channel, because they are just starting. They
do not see the need to have an intermediary. Maybe in a future, the sales increase a lot,
it will be necessary some intermediaries to cover the demand. The distribution of the
products is from the producer (MANADA) to the customer. At the surveys to 120
people, most of them was in agreement that MANADA offer the products in Nueva
Semilla. This is a huge market to supply, and offer a great opportunity to MANADA.

Figure 8: Would you like the selling of tea and similar products in Nueva
Semilla?

Most of the people surveyed were from Nueva Semilla. If the company sell their
product there, it has a really good opportunity to expand the market and grow. As
another question shows ​(Figure 9). ​Most of the people answered that they do like
natural tea, that means the opportunity to sell them the product.

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 Figure 9: Do you like natural teas?
2.5 Promotion
MANADA wants to please the attention of people through different methods of
promotion. Different methods are going to be used to be able the promotion of their
product, for example the elaboration of posters around the place to sell and through that
they can catch the attention of the people and encourage them to buy the best
MANADA product to each of them. Also an Instagram account of our company was
created, so in this way people can get more information about the products and
incentive them in buying. Also through this account MANADA will be posting new
promotions for the more loyal customer. The webpage was created also to listen the
needs and recommendation from the customers.
When we conducted our surveys, we realized that 47.5% of the people surveyed
said that one of the promotions they prefer is 2x1, while 20.8% said they would like the
second product at half price and 31.7% of people prefer a free sample of the products
(Figure 10). ​With these results MANADA can be able to decide with which method
they want to start the selling, pleasing the consumers.

Figure 10: What of these promotions do you want that MANADA offer?

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 Figure 11: Social medias.
2.6 Process
MANADA made an attractive promotion and things that people like. We can
notice this in ​Figure 9 ​when customers chose that they like teas, exactly what we are
offering. In the case that the customer want to return the product it can not be like that,
because our product is for one use, and in the packaging there is specific details about
how is the product inside.
The process to sell is at the moment that the team of MANADA have a
considerable number of products to sell, the selling can start. This depend always in the
demand that MANADA is living at that moment. Not all the sales is going to be very
success, this means that depending in that, the team will work in the making of the
product.
To know about the likes of the market, MANADA made surveys. And they
think that they will continue doing surveys in order to know the trends and likes of
customers along the time. With this MANADA hopes to create a environment of
communication and loyalty between the customer and the business.
The packaging of the product is all handmade, and natural. That is the reason of
the extra cost, and the harder work (process). The dry of the leaves take around 2-3
weeks, the packaging is also something that take time. MANADA had the idea to dry
the herbs using microwave, but they realized that if they use that process, the products
let be 100% natural, because the microwave produce some radiation that can be
dangerous for human health. MANADA are just 3 people in charge of every operation
of the company, with the correct organization everything is possible.

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Figure 12: Drying the herbs.

Figure 13: Packaging

Figure 14: Packaging

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 Figure 15: Testing the inner packaging.

2.7 Physical evidence

Some of the other companies, they only sell the current product but MANADA
offers an opportunity to personalise or decorate each product selled. The ​figure 8
shows that the people that like teas want to buy in the school, but we do not want a
current sell because we want to make a funny relation in buy-sell products. So in this
case we will use a creative t-shirt to sell and present the product. Also we could make a
bracelets with our brand and with a cute message to the people that would like a free
sample of some products, as consumers expressed in ​Figure 9.
A nice and creative stand to sell, also change and catch the mind of the people
that are apt to buy the product. The different packaging is our out of the box fact,
nobody expect to have a nice drawing in their product. And nowadays people is really
detailed about the presents/gifts that they give. That is an opportunity that MANADA
has to approach, so be aware about the near holidays: christmas, valentine’s day, etc.

Figure 16: Prototype 1

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Figure 17: Prototype 2

Figure 18: Prototype 3

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 Figure 19: Idea for the stand (selling)

Figure 20: Idea for the position of the things in the stand

2.8 People
There are three owners of the company MANADA. This means that the shares
are divided in equal part to each member of the company. The three owners of the
company do not have any experiences working in the industry. So this means that the
company has some limitations, either due to the lack of experience of the owners since
they are the only ones who work within the company.

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 The Manager is in charge that everything is running well, and that if the other
employees need help she can help them.The employees are in different areas, but all
employees are in operation area. The reason that all the employees are in operation is
that because the product is handmade it takes more time than if the company has
machines for packaging.

Figure 21: Organizational structure.

3. Finance

3.1 Forecast sales

3.1.1 Criterias used to set the forecast
MANADA’s forecast was based on the surveys. Specifically ​‘’Figure 8’’, ​in
which was asked to if they would like the selling of MANADA’s product at UENS.
From the survey was collected 120 answers, where 90% of the surveyed said that they
want the selling of these products. Remember that the surveyed included people such as
matutine and vespertine students, and also people from outside the highschool, most of
them the parents of the same students.

Table 1: Forecast data: Consumer profile

STUDENTS Sell to UENS Use of the Medium social Like tea
product for status
illness

1800 765 840 1425 1755

120 51 56 95 117

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 Figure 22: Forecast result

3.2 Cash flow

Table 2: Cash flow of December, January and February

Opening MANADA MANADA MANADA

Balance

Cash Inflow December January February

Tea box $295.5 $295.5 $295.5

Tea to go $351 $351 $351

(bottle)

Total Cash $646.5 $646.5 $646.5

Inflow

Cash Outflow December January February

Chamomile $3 $3 $3

Luisa Herbs $3 $3 $3

Oregano $1.50 $0.50 $0.50

Cinnamon $2.50 $1.75 $1.25

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 Mint $3 $2.50 $2.75

Tea bags $6 $3 $3

Thread $0.50 $0 $0.50

Paper board $8 $8 $8

Glue $1 $0 $1

Tags $7 $2 $5

Bottle $12 $12 $12

Workforce $2 $2 $2

Paper print $1.50 $1.50 $1

Total outflow $51 $39.25 $43

Net cash flow $595.5 $607.25 $603.5

3.3 Sources of Finance

Table 3: Financiation
Who will finance ? How much we have to Deal terms
pay?

Maria Grazia Orellana $10 Return the money

Natalie Ortiz $10 Return the money

Daniellie Carrillo $10 Return the money

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4. Reflection

4.1 Methodology.

4.1.1 Rationale.
Manada is a new small business, that started to operate in 2018. The reason that
the business started was a class activity of 3 students. They started selling at their own high
school, and then they started to spread along Ecuador. The product that MANADA offers
is different flavours of tea, with really nice and catching packaging. They have different
presentation, with different prices. They want in a future implement new products, or even
new flavours.
All the teas are made with their own crops, located in the orchard of their high school.

4.1.2 Syllabus to be covered.

● ​Market research: ​ to know about the customers needs and do the marketing strategies
according to the customers want.
● Social media: ​search a new way to continue promoting business.
● The fours p’s (product, price, place, promotion): ​Assess the impact of changing the
product in marketing mix.
● Unique Selling Point: ​Create a new position of the product in the market.
● Position map: ​Compare the product with the competition.

4.1.3 Sources of information.

● Customers​: To have an idea of the services that they want. Also their opinion about the
competition.
● Social medias:​ To know the product and the promotion that nowadays is used.

4.1.4 Collection of data.

4.1.4.1 Primary research.
During the researching some ideas needed to be support, that was the study of
primary tools. The used of surveys helped to this business in order to innovate a product
according with the customers wants. We conducted a survey of about 7 questions in
which each of them were closed prefronts, with the purpose of reaching directly what
you want and what you want to do with our innovation according to what the client
wants.

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 4.1.4.2 Secondary research.
The business management book has been used to support the information
provided, such as financial information, including earnings and expenses to support the
ideas mentioned, as it has a reliable source of private business information. The
business management book it’s necessary in order to now how we can explain healthy
product for the Nueva Semilla.

4.1.5 Tools use to analyzed data.

The use of steeple analysis helped to know the possibles external factors that can
affect the company. Also the use of position maps in order to show a wider view of the
different competition in the same market.
The use of a survey to consumers of teas, gave a trulier information to work
with, and also know about the different opinions.

4.1.6 Validity and Reliability.

We developed the SMART objective in order to have information where can
find realistic results of our planning. Also the different collection of data, gave to use a
wider view of the market, giving to us a truelier information to work with.

4.1.7 Anticipated difficulties.

Table 4: Limitations and solutions.

LIMITATION SOLUTION

Lack of time, for other activities in the Require some extra hours, to work in this
school. project.

The lack of permission, to sell the Ask for permission with many days in
products at school. advance.

Lack of sales. Create new promotion, following the

likes and wants of the customers.

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4.1.8 Action plan.

Table 5: Gantt chart.

4.1.9 Change in the action plan.

The action plan had been modified to adapt with the schedule of each member
of the project. In order to will not have any problem at the moment of the selling. And
also to ensure, that all the activities set, will be conclude.

4.2 Individual reflection

4.2.1 María Grazia Orellana Lopez
Date: 05-Nov-2018
My reflection about this new challenge, which is the undertaking of a product
through which it will be sold to the taste of each one of the people, is very interesting
since it allows each of us as students to discover new skills to then put them into
practice. During this process I learned many things and among them I learned that the
entrepreneur must decide where he wants to go, and in this case we must wake up in
order to discover how successful we can become. Is the best work in group that we have
in this case!

Date: 14-Nov-2018
About what worked well:

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 What worked very well in this experience is teamwork, that is, the
communication we had to develop each one of the activities and also the organization
that we had since

What could be done better related to the process:

What could be done better, could be that each of us we coupled to a time to be
able to do things together at the same time and correct faults among all because
otherwise, we could bring consequences when delivering work . This work helps me
discover the skills that I have never put into practice but I realize that with the passage
of time this is improving little by little.

The collection of the data was really hard to complete, because first we just
collected 9 people, but at the end we finished with 120. although we must rescue the
problem with the support in the team, that is, with the same failure in the project, any of
us had to correct and in this way obtain a better result.

Date: 22-Nov-2018

Today we learned to do the job faster and in time dividing each of the things
that we had to do in order to deliver things and that we generate the speed in doing a job
which turned out to be very nice to see how We have learned a lot in performing each
practice during this time. It should be emphasized that each one of us contributes with
every detail and idea for our project. We took into account the profile of the IB since
we were not developing it correctly at the beginning and I think we have improved a
lot.
this delivery was divided into 3 parts, so we divided each part for the 3 of us. It
was hard to do my part, and I hope to learn more about this new topic.

4.2.2 Natalie Ortiz

Date: 05-Nov-2018
During this first part, I felt like was the time to prepare each member, to know
how we are going to work, and to learn about each of one. I learned a lot how my
partners work, how they can help me, and how I can help them. I think the work in
group was regular, sometimes I felt a little kind of lost doing this, because the lack
communication of some members, the lack of attention also when I sent a message to
them, sometimes they even see them. This situation taught me that I don’t have to wait
that someone do what is missing in the document, if I know how to do it and I have the
time, I can complete it. Maybe if I do this, the other members feel concerned about it,
and finally want to collaborate without someone ask for it.
Even I could not be in physic way with them, because I didn’t go to school 2
days, I honestly can say, that I found time where I didn’t have it. And I helped in the
preparation, and I also complete, and correct many part of this document. I hope in the

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future parts to deliver, the communication become better, and the problems that I had
with this part will not appear again.

Date: 15-Nov-2018
In this second delivery some limitations had changed, but some of them
continued been limitations. Now we organized the work, but even organizing the topics,
it was hard to convince all the members to work in the project. The collection of the
data was really hard to complete, because first we just collected 9 people, but at the end
we finished with 120. So I felt really good for that part, because we overcame the issue.
In this second time I also had problems with the communication with my group.
It was really hard contact them outside the class hours, even they knew about their
obligation in this project. So sometimes I felt alone in the obligation of doing the
project, but always at the end they woke up and also help doing it. I hope that in the last
delivery the work will be easier, and that each member collaborate more, and that they
do not wait that someone finish the work. If they see that something is missing or is
wrong in the document, they can do it. And that was the bigger issue in this group
activity.

Date: 22-Nov-2018
During this delivery I was not too pending of the other members, because it was
about finance and for me is too hard to do it and understand. So I let the other members
of the team to be responsible about their own activities. Affortunely this delivery was
divided into 3 parts, so we divided each part for the 3 of us. It was hard to do my part,
and I hope to learn more about this new topic.
I also feel disappointed about the lack of collaboration of the other members, not
in all the activity, but in the completing of the document the collaboration was scarce.
But now I prefered to take it easy, and just wait that they complete the labeled work. In
order to let them know what they are doing bad, and that they noticed the lack of
collaboration.

4.2.3 Daniellie Carrillo

Date: 05-Nov-2018
In this first part it was that I learned how to divide and work in a group since
some of the members were not present in the document or due to external factors they
had to skip classes and not be able to do the work. I learned how to highlight or
highlight better information to make our work more effective. Also the fact that a whole
day I had to work alone in the document made me feel good and bad at the same time
because I knew that my colleagues could not enter the document and do their part for
what I had to do, but thanks to this I was able to develop and learn new skills that will
later help me.
In my opinion I think it could have gone better if we had prepared with more details the

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work of each one so that there is no confusion and organized with exact date for all to
collaborate on the document.

Date: 15-Nov-2018
In this delivery two, I learned more about the terminology of the book because i
needed to read and investigate thing that i did not know. Then i explore my creativity
when i transform the graph to another figure more creative and funny, also attractive to
the customer that we will present on december. Before of this delivery i didn't know
how to manage the tool in google apps, but know,i am able to used and if easy Ithink
that if we continue like this we can get a lot of profits in the future. Also now i know
how my partners work and in what they develop more so in this case i know what
things can i put to my group and make a well work.

Date: 22-Nov-2018
In this delivery i didn't know what to do because we saw this chapter very late
so I needed to ask help to my mom. She is economist. In this case she helped me to did
the balance and what thinks I needed to put. Now I know what to do and the adequate
terminology to use in a financial analysis. When I started doing this I can prevent some
issue in our company for example in the product of tea to go. This cost more than we
sell it. So we increase the price of the product. Actually in this project we made real
decision like real companies. I was stressful but now that we are finishing this project I
feel happy of our effort and work. In this point I know more than before. I now new
thinks that in my life I think that I am prepared to use this terminology in the life.

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5. References

- Lominé, L., Muchena, M., & Piece, R. (2014). Business Management. United
Kingdom: Oxford University.

6. Appendix

6.1 Appendix 1: Template, surveys for customers

Collection data templates

1. Do you like natural tea?

A) Yes
B) No

2. How often do you drink tea?

A) Everyday
B) Only when I get sick
C) Never

3. Which of these flavours do you prefer?

A) Chamomile
B) Mint
C) Cinnamon
D) Lemon grass
E) Oregano

4. Would you like the selling of tea and similar products in Nueva Semilla?
A) yes
B) No

5. How do you prefer tea?

A) sweetened
B) Unsweetened

6. How do you prefer tea?

A) Iced tea
B) Hot tea

7. How much are you willing to pay?

A) $2
B) $3
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 C) $4

8. Which of these brands do you prefer?

A) Natures heart
B) Hornimans
C) Sangay
D) Hierbas pusuqui

9. Which of these promotions would you like MANADA to offer?

A) 2x1
B) the second half price
C) a free sample of some product

6.2 Appendix 2: Prototype of the packaging.

Figure 23: Model of the packaging.

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6.3 Appendix 3: Testing of the product.

Figure 24: Testing.

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