ADMINISTRATIVE INFORMATION

The name of this business enterprise is, “Saint Marketing Snack Ups” or generally known

for its short moniker as , “Snack Ups”. The name is derived from the section of the owners, St.

Mark, and infused with letters that would spell the word , “Marketing” and Snack Ups, because

the owners wanted to offer snack products that would somehow address the needs of the

customers and up their budget as if “Snack Level Up”. It is also a Department of Trade and

Industry registered enterprise, and legitimate business enterprise in the Municipality of Palo,

Leyte, having complied with the Mayor’s Permit, Sanitation Certificate, as well as complied with

the Barangay Clearance of Brgy. Campetic , Palo, Leyte.

The concept of the business was derived from their Entrepreneurship class with Prof.

Marla B. Sudario, when she presented a video on the successful business venture, ”Snack

Attack”, selling snack bundles on a cup.

The said business enterprise is owned and managed by:

1. Mac Bruen Servana-Ibanez

2. Harold Dave Limpiado

3. Eriberto Lumakin III

4.Alea Mae Macasusi

5.Rommel Monje

6. Treb Jude Tuazon

7. Roan Mae Velarde

8. Gracely Ann Viador

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 Saint Marketing Snack Ups started operating last, February 5, 2018, the start of the

BizEd Days celebration, and consecutively operated until February 9, 2018, the last day of the

BizEd Days celebration at the Parking Area of Saint Paul School of Professional Studies. It

resumed business operations every Wednesday from February 21 , instead of February 14 due to

an unforeseen weather disturbance and ended on February 28, at the SPSPS Auditorium.

BUSINESS DESCRIPTION

This section of this Business Operations Review present the business process/es adopted

by the business entity

Business processes are effective ways to improve business performance, and resource

efficiencies , and perform value-added functions to meet critical needs. To be effective, a

business process should be easily integrated with other processes and the organizational

structure. As potentially useful and effective as business processes are, often times they’re poorly

planned, implemented, or communicated. In such cases, a process may result in confusion and

create an even more ineffective environment than previously existed. When planning,

implementing, and communicating a new business process, it is important to provide structure, a

formal process flow, process boundaries, inputs/outputs, and control points. This will allow the

organization to not only achieve improved performance, but to have a mechanism to continually

improve the business process.

Saint Marketing Snack Ups adopted integrated business processes that will ensure that

the business enterprise is heading the right track in achieving its goals as well as delivering the

quality products that customers sought for.

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 Saint Marketing Snack Ups during its operation phase, would normally buy the

inventories needed for a particular operating day after the preparation of the entity’s daily report

on cash position, peer evaluation, and inventory report of a particular operating day, since the

earnings for that particular day are substantial to replenish the inventory. In the case, stores are

already closed, the entity would buy the inventory on the actual day of operation, before the stall

opens.

Once the business opens, the firm has already laid out fixed responsibilities that are

integrated , in which the end result is to provide the products that the consumers are looking for.

Each operating day, the business, would assign two people to be at the cashier’s station in

dealing directly with the clients. One person will be in charge of giving the change to customers,

as a sanitary practice, and the other one will be responsible taking the orders of the customers on

a sticky note with the name of the customer on it, paste the order slip to the cup and then give it

to the ones in charge with the food preparation.

With respect to the food preparation, the firm assigned four individuals/personnel, who

have separate tasks to sum up the food preparation process. The first personnel is solely assigned

to attending/manning the electric deep fryer and cooking the ingredients. The said personnel is

already knowledgeable of the routine, since time for the ingredients being cooked is already

estimated, and the pace of production is maintained. Once the ingredients are already cooked,

two personnel are responsible in attending to the order of the client, these two are the ones

responsible in arranging the cups, putting the desired amount of the food components into each

cup depending on the product combo desired , and mixing the seasoning to the fries etc. They are

very keen on what was written in the order slip pasted as well as with the name of customer to

prevent confusion and giving the wrong product bundle to the customer. The other personnel is

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in charge with the drinks, the said individual is responsible for dissolving the powdered juices

and putting ice on the tall cups and coordinating with the other two personnel focused on the

food preparation aspect. There are two other personnel on stand by, since they will be the ones

delivering the ordered products to the customers, if these customers would opt for door to door

delivery.

Since the business had a problem with two of its owners, since these two are negligent of

the tasks and obligations to the firm ,the business decided to make the task designation fixed for

the entire duration of business operations, so as not to hamper the productivity capacity of the

firm, and with that move, the persons assigned have to maximize their efforts.

In case the business runs out of inventory during the middle of the operating day , the

personnel stationed in the cashier’s area would put the signage temporarily not accepting orders,

so that purchasing officer of that particular operating day will commissioned to purchase the

items which ran out to continue the business operations.

The integrated business processes succeeded, despite the increasing demand for the

business’s products, the individuals assigned to the posts were able to address the clientele, and

were even efficient and effective in the production process and were even also performing

beyond their level best.

CUSTOMER SATISFACTION

PROFILE OF CUSTOMERS

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 During the entirety of business operations , Saint Marketing Snack Ups was able to

attract a broad satisfied customer base. As each new operating day unfolds, throngs of customers

are queueing at the Saint Marketing Snack Ups tent, and new faces of customers are seen with

joy as they buy our products. During the business operations it was noticed that mostly of the

clientele were students of Saint Paul School of Professional Studies majority of which are from

the College Department, as the days passed, the business were able to attract the faculty as well,

it happened when the SPSPS faculty were having their curriculum mapping at the Conference

Hall, when Ma’am Cristy Bacarisas ordered a certain snack bundle, once her order was delivered

to the Conference Hall, numerous orders from the faculty attending the curriculum mapping

followed suit. Aside from the faculty some administrative officers ordered at Snack Ups, like Mr.

Socrates Sabuco. During the opening of the Paulinian Cup, which opened SPSPS to outside

students, the business was able to cater to students watching the games especially students from

LPHS, St. Mary’s etc.

STRATEGIES USED TO ATTRACT CUSTOMERS

The business employed numerous strategies in luring customers. The most notable

strategy used, is when one of our member, Harold Dave Limpiado, would go around the area

carrying with him the cups, and convincing the customers of how superior are the products of

Snack Ups compared to its competitors, especially when he put emphasis on the size of the cup

as well as the contents of each snack bundle. The strategy succeeded and was able to capture

some of the customers of the competitors of the business. Another strategy employed was the

distribution of flyers to the bystanders.

The business also relied on its satisfied customers, through their word of mouth, they

were able to bring with them their friends/peers and became clients of the business.

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 PROOF OF CUSTOMER SATISFACTION

Since the individuals comprising the business were preoccupied in their separate tasks, no

pictures were obtained from satisfied customers, but customer satisfaction can be assured of

when, the customers continue to still flock the tent designation of the business. The frontliners of

the business would notice familiar faces who regularly continue buying Snack Ups’ products,

and even regular patrons would often bring with them new customers. Even the faculty who

bought the products of the business, would often say, that the product is good and sumptuous

and even affordable. Regular buyers would often increase the volume of their purchases.

As a token of gratitude for the loyalty of its clients, the business decided to initiate its

loyalty program to its valued and loyal customers, in which for every third purchase of a

customer, he/she will get a free product bundle of his/her choice.

BUSINESS RESULTS

Saint Marketing Snack Ups did not only achieve its goals, it also exceeded these. Due to

the threat of Market Saturation and Competition, the business was only anticipating a break-

even financial condition with a meager profit return, but only to found, that Saint Marketing

Snack Ups was able to withstand such impediments and even obtained a significant profit out of

the business operations despite the existence of numerous competitors in the market well in fact

it was able to outperform Mc Donalds’ in terms of sale.

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 Due to the unexpected success of the business venture, the owners are considering the

possibility of continuing the business venture after senior high school especially during the

summer vacation. Most of the business owners convened that the business operations be

continued in the locale of Alang-Alang, Leyte since there is a high demand for snack products,

and then the products of the business is easy to market since these are very affordable to the

consumers, and then the possible competitor in the said locale is selling snack products at

exorbitant prices, which is actually an advantage for the business firm once being able to

penetrate the aforesaid new market.

The business enterprise encountered numerous risks during the business operations which

can impede the business in achieving its goals. The top 3 risks experienced by the business were:

a. Market Saturation and Competition

b. Price Sensitivity of Customers

c. Sudden Change in Supplier

For the first risk, there were other 23 business enterprises selling food products and then

posed a great threat for the business’ survival and sustainability, since it’s a gargantuan task on

how to market a product portfolio considering the fact that 23 other business enterprises are

selling the same , and also the market was not broad and very limited, which somehow made

chances of profitability minimal or even slim. And out of the 23 other businesses, the business

had two direct competitors namely: Snack Kita and Put A Cup, serving the same niche market ,

and it became priority for the business to formulate policies on how to break the competition and

outperform the business’ competitors.

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 With regards to this risk, the business was able to address the aforesaid issues, by sticking

its company philosophy, of providing quality products at affordable prices and by employing

strategies putting emphasis on the superiority of our products compared to that of our

competitors’, which really worked, despite dividing the niche market being catered to the by the

business, Saint Marketing Snack Ups was able to perform well given such impeding situation,

and even exceed its goals.

For the second risk, during the first day of operations, the owners were wondering why is

it few customers are buying at Snack Ups, and the root of the problem was identified, during that

day the business offered snack bundles at P40.00 which is quite heavy to the pockets of the

customers, and then when one of the owners found out that there was a miscalculation in the

price of the snack bundles, which apparently was very exorbitant, one of the owner recalculated

a new price somewhat lower than the prior price and at the same time still earning a profit, from

P40 to price decreased to P29, which was indeed a psychological pricing strategy. The moment

the business initiated the price shift, customers began piling up, and then Snack Ups was able to

steal some of the customers of its competitors, since the business offering a superior snack

bundle at an affordable price. The said move was one of the many contributing factors that

skyrocketed Saint Marketing Snack Ups to business success.

For the third risk, during the 4th day of business operation, the purchasing officer of the

business found out that the supplier of the tall cups does not have any inventory of the said cups,

with that the purchasing officer was urged to find other suppliers that provide the said cup.

Fortunately he was able to find a supplier, but pretty expensive than the previous supplier. With

that the business owners convened, because it is difficult to maintain the price of P29

considering the fact that one of the vital components of the product was obtained at a higher

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price, which could somehow affect the profitability of the business venture. This posed a great

predicament for the business.

The business owners decided to increase the price from P29 to P35, considering the fact

that such move will bring uncertain implications to the business. To give justification to the

sudden price increase, the business explained to its customers about the said issue on the change

of supplier and also assured that in commensurate to the price increase, the business will also

increase quantity of the product bundle particularly the volume of the fries and then the drink.

Despite the price increase customers still came pouring in, especially when they heard that the

volume of the product components will be increased in relation to the price increase.

FINANCIAL PERFORMANCE

BUDGETARY CONSTRAINTS

During the business operations, Saint Marketing Snack Ups did not experience budgetary

constraints, since the entity provided an effective and efficient appropriation of its financial

resources to its expected costs

UNEXPECTED COSTS AND SAVINGS

The business really expected a lot of costs especially when it had to replenish its

inventory during the middle of the day when inventory ran out. Ironically it was not able to

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expect savings, until one time estimates were made on how many servings can be made or how

many customers can be catered to with that level of inventory.

Due to the unexpected huge sales volume being experienced by the business, the owners

decided on keeping a portion of the amount of the sales before the daily cash reports are prepared

this is to ensure the business will be able take advantage of the favorable market condition and

then easily reach the break-even financial condition of the business. These savings are different

from cash, since these are restricted not to be used for the dealing with business operating

expenses and intended for safe-keeping.

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 STATEMENT OF FINANCIAL PERFORMANCE/INCOME STATEMENT

SAINT MARKETING SNACK

UPS
INCOME STATEMENT
for the month ended February 28,
2018

Total Sales 26,413

Total Expenses         20,964  
Net Income 5,449  

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 SAINT MARKETING SNACK UPS
Balance Sheet
As of March 5, 2018

Current Assets:
Cash 3, 530
Accounts Receivable 669
Savings 9,250

Non-Current Assets: 0

             
Total Assets 13,449

Current Liabilities: 0

Non-Current Liabilities: 0

             
Total Liab. 0

Equity
Owners' Equity 8,000
Net Income 5,449

            13,449
Total Liabilities and
Equity 13,449

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 Rate of Return of Investment

The aforementioned financial statement analysis tool measures and reflects the

profitability of every peso invested by the owner. With respect to the business enterprise under

review, the rate of ROI, during the business operations resulted to 40.52% as computed by

dividing the net income with total amount of assets, which that for every one peso invested by

the owners of the firm it appears to that there was 40 cents returned to the owners as the fruits of

their investments. The said rate truly affairs that the business performed well, and earned a huge

profit margin from its operations.

INNOVATIONS

Since the possibility of the continuing the business venture after senior high school is

being considered, there will be some adjustments made to make the easy implementation of the

business venture in the intended locale. It was agreed upon by the business owners that the

business will be continued in Alang-Alang, Leyte. Adjustments that will be made will be

changing the product bundle and then the location will be proximate to the town center, which

can entice a large number of customers, possible compliance with the business requirements in

the said municipality, as well as cost-effective measures will be strictly be implemented and

observed and then introducing new marketing and advertising strategy.

FUTURE PLANS

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 As a group, due to unprecedented success of the business venture it was agreed upon by

most of the business owners that it will be continued in Alang-Alang, Leyte, as an income

generating endeavor during the Summer Vacation ,and conducting such business activity in that

given time frame will be an opportune time to accumulate huge sales volume given the fact

people flock to the town center during festivities being commemorated during the summer

vacation period.

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