Business Planning Final Paper

FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

Business Administration Department
FEASIBILITY STUDY OF OINTMENT USING

PEPEROMIA PELLUCIDA
A Business Plan Paper
Presented to
Faculty of Business Administration Department
Institute of Accounts, Business and Finance Far
Eastern University – Manila
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
By
Maika Feleen O. Cabasal
Mayca Kristina R. Khadnanta
Justine B. Mallari
Jazztyn Courtney C. Mendoza
Katrina Paula C. Ridon
Patricia Nicole C. Sabalbaro
Mariel L. Tuliao
Jessa Leah A. Velarde
8 November 2018
RECOMMENDATION AND APPROVAL SHEET
This undergraduate business plan paper entitled:FEASIBILITY STUDY OF

OINTMENT USING PEPEROMIA PELLUCIDA, prepared and submitted by Click
or tap here to enter text., in partial fulfillment of the requirements for the degree
of Bachelor of Science in Business Administration, has been examined and is
recommended for acceptance and approval for oral defense.
GINA T. SUAREZ
Adviser
BUSINESS PLAN REVIEW PANEL
Approved by the Committee on Oral Defense with a grade of ________.
FIRST NAME MI. LAST NAME FIRST NAME MI. LAST NAME
Panel Member Panel Member
VON KIRBY P. GERMAN

Chairman
Accepted and approved in partial fulfilment of the requirements for the

degree of Bachelor of Science in Business Administration.
ALMA EMERITA V. DELA CRUZ

Dean
ACKNOWLEDGEMENT
The proponents would like to express their gratitude to the following

people for their invaluable contribution that helped in the completion of this
paper.
For the FEU – IABF Professors, for their important recommendations and
constructive evaluation that gave this plan focus and directions.
For Dr. Gina Suarez, feasibility adviser, for the genuine support, giving
time for consultations to check the paper, effort, constructive criticisms for the
improvement of the paper, encouraging productivity among the proponents and
all the vital suggestions that completely guided the proponents throughout the
study.
For all the respondents who shared their valuable time to answer survey
and give suggestions regarding the study which has been an additional basis and
information for the proponents for the improvement of conducting the study.
The Lord Almighty, for His Divine Love and Mercy that has kept the
proponents in good health and determination to accomplish the study.
The Proponents
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | ii PELLUCIDA

EXECUTIVE SUMMARY
Filipinos have been using ointments ever since it has entered the Philippine
Market. One of the major players in the category of ointment in pharmaceutical
industry is Vicks Vaporub which has been launched in the Philippines since
1930s and has been actively promoted through print and radio advertising by the
year 1950s. Aside from Vicks, a lot of other brands have continued to enter the
Philippine Market. Even now, new entrants offering ointments tries to compete in
the market.
The foremost part of the Business plan introduces the company, Ecoraphy
Corporation and the product Peperomia Ointment which is a salve that has the
ability to relieve muscular and joint pains. Aside from that, since it has an active
ingredient of “Pansit-pansitan” which has been known to have healing properties
for gouty arthritis, the product also claims that it could have a potential effect to
heal the cure and relieve pain acquired from arthritis. It also have a healing effect
for the wounds for it has been tested that it has secondary metabolites of
Triterpenes which is has activity to heal wounds faster.
The latter part of the study is about the marketing aspect which tackles the
market analysis, the demand and supply of the product, the projected sales, the
strengths, weaknesses, opportunities and threats of the business, the projected
sales, the competitors’ analysis and the systematic gathering of data and
information about the potential consumers which is the market research. In this
part of the paper, it discussed the current situation of the ointment in the
pharmaceutical industry and its potential growth rate. It also discussed the
different marketing mix of strategies to counter attack the strategies of the
competitors to have a competitive edge.
The production and operations study has been also discussed in the paper
which has explained the production process of the ointment and the operations of
the business. It also explained the packaging and the quality and safety
measures for the employer, employees and the customers as well. The
Management part of the business is also discussed in the paper which probes
the business model and the organizational structure of the company. It also has
the part of the hiring and selection process of personnel to be employed by the
business, the different job specifications, their tentative salaries and benefits and
the company policies. The intellectual property of the business has also been
discussed in this chapter of the paper.
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | iii PELLUCIDA

The latter part has presented the different financial statements of the
business and the company’s financial standings. The cost structure and the
pricing strategy are also presented in this part in its quantitative figures and the
mark up of the company and the income assumptions.
On the last part of the paper, it discusses the socio-economic aspect,

sustainability of the product and its’ potential impact to the community.
In conclusion, the proponents discusses the business plan paper with the
objective of analyzing its feasibility. We aim that our brand will be recognized by
people, and the effectiveness of the product that we will be introducing in the
market. With the use of organic leaves that are used in the product, it will lessen
the use of harmful chemicals that harms and destroys the environment.
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | iv PELLUCIDA

TABLE OF CONTENTS
RECOMMENDATION AND APPROVAL SHEET .............................................................................................I
ACKNOWLEDGEMENT ............................................................................................................................. II
EXECUTIVE SUMMARY ............................................................................................................................ III
TABLE OF CONTENTS ............................................................................................................................... V
LIST OF TABLES ...................................................................................................................................... VII
LIST OF FIGURES ...................................................................................................................................... IX
CHAPTER 1: INTRODUCTION .................................................................................................................... 1
FORM OF BUSINESS .......................................................................................................................................... 1

COMPANY PROFILE AND LOGO ............................................................................................................................ 1
INDUSTRY ...................................................................................................................................................... 2
CHAPTER 2: MARKET STUDY .................................................................................................................... 4
MARKET ANALYSIS ........................................................................................................................................... 4

Historical Demand ................................................................................................................................ 4
Projected Demand ................................................................................................................................ 4
Historical Supply ................................................................................................................................... 5
Projected Supply ................................................................................................................................... 5
Demand and Supply Gap Analysis ......................................................................................................... 6
PROJECTED SALES ............................................................................................................................................ 6
SWOT ANALYSIS ............................................................................................................................................ 7
MARKETING MIX............................................................................................................................................. 7
19
CHAPTER 3: OPERATIONS AND PRODUCTIONS STUDY ........................................................................... 20
PRODUCTION REQUIREMENTS AND PROCESSES...................................................................................................... 21
CHAPTER 4: MANAGEMENT STUDY ........................................................................................................ 25
BUSINESS MODEL .......................................................................................................................................... 25

ORGANIZATIONAL STRUCTURE .......................................................................................................................... 28
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | v

PELLUCIDA
INTELLECTUAL PROPERTY ................................................................................................................................. 33
CHAPTER 5: FINANCIAL STUDY ............................................................................................................... 35
CAPITAL REQUIREMENTS ................................................................................................................................. 35

STATEMENT OF FINANCIAL POSITION ...................................................................... ERROR! BOOKMARK NOT DEFINED.
STATEMENT OF COMPREHENSIVE INCOME............................................................................................................ 37
STATEMENT OF CHANGES IN EQUITY................................................................................................................... 39
STATEMENT OF CASH FLOWS ............................................................................................................................ 40
FINANCIAL RATIOS AND ANALYSIS ...................................................................................................................... 41
Payback Period........................................................................................ Error! Bookmark not defined.
NPV ......................................................................................................... Error! Bookmark not defined.
IRR ........................................................................................................... Error! Bookmark not defined.
Profitability Ratios .................................................................................. Error! Bookmark not defined.
Liquidity Ratios........................................................................................ Error! Bookmark not defined.
Activity Ratios ......................................................................................... Error! Bookmark not defined.
Solvency Ratios ....................................................................................... Error! Bookmark not defined.
Break-Even Analysis ................................................................................ Error! Bookmark not defined.
CHAPTER 6: SOCIO-ECONOMIC STUDY ................................................................................................... 44
SUSTAINABLE COMMUNITY .............................................................................................................................. 44
APPENDICES ................................................................................................................................................. 36
SEED GERMINATION, PHENOLOGY, AND ANTIEDEMATOGENIC ACTIVITY OF PEPEROMIA

PELLUCIDA (L.) H. B. K. ............................................................................................................................. 3
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | vi PELLUCIDA

LIST OF TABLES
Table 2.1 Projected Sales
Table 2.2 Price for 10g
Table 2.3 Price for 15g
Table 2.4 Gender
Table 2.5 Age
Table 2.6 Marketing Research 1
Table 5.1 Statement of financial position
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | vii PELLUCIDA

Table 5.2 Profit and loss
Table 5.3 Statement of Changes of Equity
Table 5.4 Statement of Cash Flow
Table 5.5 Financial Highlights
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | viii PELLUCIDA

LIST OF FIGURES
Figure 1.1 Logo
Figure 1.2 Packaging
Figure 2.1 Historical Demand
Figure 2.2 Projected Demand
Figure 2.3 Historical Supply
Figure 2.4 Projected Supply
Figure 2.5 Demand and Supply Gap Analysis
Figure 2.6 SWOT Analysis
Figure 2.7 Competitor’s Analysis
Figure 2.8 Gender
Figure 2.9 Age
Figure 2.10 Marketing Research 1
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | ix PELLUCIDA

Figure 3.1 Tin Can
Figure 3.2 Packaging
Figure 4.1 Business Model
Figure 4.2 Organization Structure
Figure 4.3 Hiring Process
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | x PELLUCIDA

CHAPTER 1: INTRODUCTION
Form of Business
The Proponents chose to be a corporation because it has the ability to
attract more investors to invest in the company and being a corporation can limit
the liability of the owners. Being a corporation also offers flexibility of ownership
and its ability to transfer ownership is convenient for the members because it
contains outline number of shares. By choosing to be a corporation, it will give
the managers the advantage to have many connections with other businessmen
and entrepreneurs and by those connections, the business can generate more
revenue and profit and establishing a name popularity in the market.
Company Profile and Logo
VISION:
Ecoraphy Corporation is committed in achieving to be one of the leading
brands in organic and affordable ointment in the country.
MISSION:
Ecoraphy Corporation is dedicated in providing the best soothing, easing,
calming sensations for the consumer’s muscle and joint pains. Ecoraphy
Corporation is aiming the brand awareness and brand recognition of the product
in promotional industry.
MANAGEMENT TEAM OVERVIEW:

Ecoraphy Corporation is promoting uniformity in terms of responsibilities
and compensational benefits of each individual members of the organization as
the Management Team of Ecoraphy Corporation progresses its organization.
LOGO:
Figure 1.1
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | 1
PELLUCIDA
Tree - A Tree logo symbolizes the stable growth of a company, just like a tree. It
also symbolizes a fresh start on life, positive energy, and a bright future. And the
proponents want to have a good start of business and have a bright future in the
long run.
Color Green - The color green is representing the eco-friendly businesses which
connect to agriculture, recycling, and gardening.
The logo has the shape of a woman and it now symbolizes the Mother Earth
which it represents the life-giving and bringing up the beauty of nature.
Industry
The Proponents’ product, Pansit-pansitan (Peperomia Pellucida) ointment,

is in the industry of pharmaceutical market. Pharmaceutical industry is increasing
because the number of pain and itch related diseases and the threats of
experiencing any pain like arthritis, gouts and wounds. Some of the major players
in this industry are Procter & Gamble’ Vicks products, Katinko and other big
companies that manufactures pain and itch products. The statistics depicted that
by 2024 pharmaceutical industry will hold 4.3 in global market. However, there
are some existing companies that are already establishing or have established
their names in this industry by supplying the market with pain and itch relieving
ointments. There are various risks of using ointment that has high chemical
contents. This is the reason why customers will pick the healthy version or less
chemical content ointments. In connection with this, the demand for organic and
herbal ointments are also increasing.
GLOBAL MARKET
Others
Cosmetics
Food and
Beverage Chemical
Phamaceutical
Figure 1.2
FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | 2 PELLUCIDA

Product Highlights
Peperomia ointment is an organic product made of Pansit-pansitan
(Peperomia Pellucida); herbal medicine specialized to help the body to lessen
the pain caused by the gout, arthritis, and any other inflammatory conditions.
However, in everyday lives the common symptoms are muscle aches and itch
feelings, which brings everyone the uncomfortable feeling and irritation as they
feel the stress coming from it, this ointment can be a remedy to alleviate it. The
ointment helps your body to relax from being strained because of the cooling
sensation that is created by the ointment. It also helps you to reduce the tenses
of your body because of the many remedies specialized by the Peperomia
Ointment unlike other ointments they only serve cooling sensation to reduce the
pain but the Peperomia Ointment has many benefits to avoid pains caused by
arthritis, gouts and other conditions.

CHAPTER 2: MARKET STUDY
Market Analysis
Historical Demand
HIST O RICAL DEMAND
540,000
518,869
520,000 503,249
500,000 488,420
474,333
480,000
460,878
460,000
440,000
420,000
2013 2014 2015 2016 2017
Figure 2.1
Figure shows that on 2013, the historical demand of people for the ointment is
460,878. On the following year of 2014 the demand increased in to 474,333. On
2015, demand also increased to 488,420. While on 2016, the demand increased
to 503,249. Lastly, on 2017 the demand for the Ointment is 518,869. As seen in
the figure, it shows that the demand of the people for the product increases every
year.
Projected Demand
PROJECTED DEMAND
600,000.00
580,000.00
560,000.00
540,000.00
520,000.00
500,000.00
2018 2019 2020 2021 2022
Figure 2.2
PELLUCIDA
With the historical demand of 518,869 by the end of 2017, the proponents
have come up with the projected demand for 2018, 533,367 projected demand
with an annual growth rate of 3%
Historical Supply
HISTORICAL SUPPLY
200,000 175,292
160,195
145,543
150,000 131,313
117,486
100,000
50,000
0
2013 2014 2015 2016 2017
Figure 2.3
Figure shows that on 2013, the historical supply for the Ointment is 117,486
units. On the following year of 2014 the supply increases in to 131,313 units. On
2015 its supply also increases to 145,543 units. While on 2016 the supply
increases to 160,195 units. Lastly, on 2017 the supply for the Ointment is
175,292 units. Every year the supply for the product units increases as years go
by.
Projected Supply
PROJECTED SUPPLY
300,000
238,958
250,000 206,425 222,458
190,859
200,000 175,293
150,000
Figure 2.4
100,000
50,000
0
2018 2019 2020 2021 2022

PELLUCIDA
Figure shows that on 2018, the projected supply for the Ointment is 175,293
units. On the following year of 2019 the supply increases in to 190,859 units. On
2020 its supply also increases to 205,425 units. While on 2021 the supply
increases to 222,458 units. Lastly, on 2022 the supply for the Ointment is
238,958 units. As seen in the figure, it shows that the projected supply of the
product units increases every year.
Demand and Supply Gap Analysis

Demand and Supply Gap
700000
600000
500000
400000
300000
200000
100000
0
0 2018 2019 2020 2021 2022
Demand Supply
Figure 2.5
The chart shows that the demand for the product and supply of units to produce
increases each year along with the increase of price and mark up.
Projected Sales
2018 2019 2020 2021 2022
Supply 88,000 105,600 126,720 152,064 182,476.80
Price 33.00/38.00 39.60/45.60 47.52/54.72 57.02/65.66 68.42/78.79
Total 3,124,000.00 4,498,560.00 6,477,926.40 9,328,214.02 13,432,628.18

SWOT Analysis
Figure 2.6
Marketing Mix
Product
Ecoraphy Corporation created a product that provides answers to
inflammations, this product solves muscle pains and joint pains. Peperomia
Ointment is made from Pansit-pansitan which falls from the family of spinaches.
Peperomia Ointment will have a variety of sizes from 10g and 15g for the initial
years of the business for the customer to choose from. On the succeeding years
of Ecoraphy Corporation's production, it will develop a new set of size which are
25g and 40g.

Price
Materials :15g Materials
Pansit Pansitan extract 1,500.00
Menthol Crystal 720.00
Camphor 135.00
Beeswax 126.00
Hard Paraffin 32.00
Soft Paraffin 243.00
Cetostearyl Alcohol 13.50
TOTAL 2,769.50
Number of units 200.00

Cost Per Unit 13.85
Additional: -
15ml Screwtop/ pcs 10.00
Packaging 1.00
Packaging 4.00
Cost Per Unit 28.85 Table 2.2
Materials :10ml Materials

Pansit Pansitan extract 1,500.00
Menthol Crystal 720.00
Camphor 135.00
Beeswax 126.00
Hard Paraffin 32.00
Soft Paraffin 243.00
Cetostearyl Alcohol 13.50
TOTAL 2,769.50
Number of units 300.00

Cost Per Unit 9.23
Additional: -
15ml Screwtop/ pcs 8.00
Packaging 1.00
Packaging 4.00
Cost Per Unit 22.23 Table 2.3
Place

Ecoraphy Corporation will distribute products online on its initial year and
stalls on commercialized establishments on the succeeding years.
Commercialized establishments are the most profitable place to allocate out
stalls as it is the most accessible location for the customers and with that
Ecoraphy Corporation will be focusing directly to end users. Ecoraphy
Corporation will serve from middle to lower classes in particular.
Promotion
Interactive Marketing:
Ecoraphy Corporation will promote through social media site as a channel
for promotion in the first year in the ointment industry - Facebook for
announcement, Twitter and Messenger for socializing with consumers, Instagram
for displaying product photos, and creating a website for online brochures which
there will indicate the benefits of Peperomia Ointment, in such ways, Ecoraphy
Corporation will create an interaction with potential customers.
Sales Promotion:
Ecoraphy Corporation will provide samplings and brochure of the
Peperomia Ointment to gain brand recognition in the industry. On the succeeding
year of Ecoraphy Corporation there will be a Premium promotion which will be a
partnership with other products unrelated to the ointment.
Special Event:
Ecoraphy Corporation will be also a soft opening event as one of its
special events.
TV Advertisement:
Ecoraphy Corporation will consider promoting its product through Digital
Media in designated location throughout Quezon City and Radio Broadcasting on
selected Radio Station with specified time airing.
Public Relation:
There will be a fun run entitled “Join-T Run” on the 5 year anniversary of
the Ecoraphy Corporation which advocates encouragement for the consumers
who are pursuing to spread consciousness in healthy living.

Competitors Analysis
Figure 2.7

Market Research
A. Profile
Gender:
Table
Response In numbers In percentage
Female 73 73%
Male 27 27%
Total 100 100%
Table 2.4
MALE
GENDER
27%
FEMALE
73%
Figure 2.8
Figure shows that 73 respondents are female. The remaining 27 respondents are
male. There is a large discrepancy between the numbers of male and female
since in a household, the female members are more likely interested in
ointments.
Age:
Table
18-25 18 18%
26-30 18 18%
31-35 11 11%
36-40 8 8%
41-50 23 23%
50 and up 22 22%
Total 100 100%
Table 2.5

AGE [CATEGORY
[CATEGORY
NAME] NAME]
22% 18%
[CATEGORY Figure 2.9

NAME]
[CATEGORY 18%
NAME]
23% [CATEGORY [CATEGORY
NAME] NAME]
8% 11%
Figure shows that both 18-25 and 26-30 have 18 respondents, 11 respondents
are ages 31-35, 8 respondents are ages 36-40, 23 respondents are ages 41-50
and 22 respondents are ages 50 and up.
 Would you use Pansit-pansitan organic ointments?
Table
Yes 53 53%
No 25 25%
Uncertain 22 22%
Total 100 100% Table 2.6
WOULD YOU USE PANSIT-PANSITAN

ORGANIC OINTMENTS?
No answer
Uncertain
Yes
No
Figure 2.10
Figure show that 53% of the respondents are willing to use the Pansit-pansitan
ointment while 25% disagreed on using the ointment and 22% respondents are
uncertain.

 Are you willing to buy Pansit-pansitan Ointments?

Table
Yes 62 62%
No 17 17%
Uncertain 19 19%
No answer 2 2%
Table 2.7
Total 100 100%
ARE YOU WILLING TO BUY PANSIT-

PANSITAN OINTMENTS?
No Answer
Uncertain
No Yes
Figure 2.11
Figure shows that 62% of the respondents are willing to buy the Pansit-pansitan
Ointment and 17% respondents are not willing to buy. Also, 19% of the
respondents are uncertain in buying the ointment because they are depending on
the price and 2% of the respondents didn’t answer the question.
 Are you using ointments to relieve pains and other aching parts of the
body?
Table
Response In In percentage
numbers
Yes 79 79%
No 20 20%
No answer 1 1%
Total 100 100%
Table 2.8

ARE YOU USING OINTMENTS TO RELIEVE PAINS

AND OTHER ACHING PARTS OF THE BODY?
No answer
No
Yes
Figure 2.12
Figure shows that 79% of the respondents are using ointments to relieve pains
and 20% respondents are not using ointment while 1% didn’t answer the
question.
Table
Sore throat 13 16.46%
Arthritis gout 15 18.99%
Muscle pains 40 50.63%
Pimples 4 5.06%
Wounds 5 6.32%
Headache 2 2.54%
Total 79 100%
Table 2.9
WoundsHeadache
Sore throat
Pimples
Arthritis
gout
Muscle
pains Figure 2.13
Table
Response In In percentage
numbers
Yes 9 45%

PELLUCIDA
No 4 20%
No answer 7 35%

A. What type of ointments are you using:
Table
Organic 17 17%
Non-Organic 67 67%
No answer 16 16%
Total 100 100% Figure 2.141
Figure shows that 67% of the respondents use non-organic ointments and 17%
use organic ointments while 16% of the respondents didn’t answer the question.
B. If you are using non-organic ointment are you willing to use organic? Table
Yes 44 65.67%
No 12 17.91%
No answer 11 16.47%
Total 67 100%
Table 2.12

IF YOU ARE USING NON-ORGANIC OINTMENT

ARE YOU WILLING TO USE ORGANIC?
No answer
No
Yes
Figure 2.15
Figure shows that out of 67% respondents who uses non-organic ointments,
65.67 of it are willing to use organic and 17.91 of it are not, while 16.37 didn’t
answer the question.
 How much are you willing to pay on organic ointments?
Table
30-50php 34 34%
50-79php 22 22%
80-100php 25 25%
101-150php 11 11%
151-200php 5 5%
201-300php 1 1%
300 php and up 2 2% Table 2.13
Total 100 100%

HOW MUCH ARE YOU WILLING TO PAY ON

ORGANIC OINTMENTS?
151-200201-300
300 and up
101-150 30-50
80-100
51-79 Figure 2.16
Figure shows that 345 of the respondents are willing to pay 30-50 pesos per
organic ointments, 22% are into 50-79 pesos, 25% are into 80-100 pesos,
11% are into 101-150 pesos, 5% are into 151-200 pesos, 1% is into 201-300
pesos and 2% are willing to pay 300 and up pesos.
 Which place would you like to purchase our product?
Table
Malls 23 23%
Public Market 5 5%
Grocery Stores 10 10%
Drug stores/Pharmacy 55 55%
Online Shop 7 7% Table 2.14
Total 100 100%
WHICH PLACE WOULD YOU LIKE TO

PURCHASE OUR PRODUCT?
Online Shop
Malls
Public Market
Drug
stores/pharm Grocery
acy Stores
Figure 2.17

Figure shows that 55% of the respondents wanted to purchase the product in
drug stores or pharmacies while 23% wanted to purchase on malls, 10% in
grocery stores, 7% on online shops and 5% in public market.
Table
Response 5 4 3 2 1 Total
TV 41 23 21 11 4 100
Commercial
Billboards 11 19 23 23 24 100
Social 30 20 25 15 10 100
media Table 2.15
Word of 15 25 24 17 19 100
mouth
Print ads 14 21 10 22 33 100
500
 Rate every from advertising base on influence
Word of mouth Print ads Figure 2.18
TV Commercial
Social Media
Billboard
Figure shows that 41 respondents gave the highest number on TV Commercial,

30 respondents on social media, 15 respondents on word of mouth, 14
respondents on print ads and 11 respondents on billboard.
 Would you recommend our product on your friends and relatives?
Table
Yes 71 70%
No 12 12%
Uncertain 17 17%

PELLUCIDA
WOULD YOU RECOMMEND OUR PRODUCT

ON YOUR FRIENDS AND RELATIVES?
Uncertain
No
Yes
Figure 2.19

CHAPTER 3: OPERATIONS AND PRODUCTIONS STUDY
Key Business Operations
The product can be availed on different classes of mall in the Philippines

with a target consumer of classes ranging from classes upper D to C. The
operating hours would be according to the mall hours which is typically 10 am to
9 pm and that would be 11 – 12 hours a day. The head office together with the
manufacturing factory is located at Caloocan, Metro Manila. The Proponents can
assure that the product can showcase affordability and effectiveness of the
ointment. Effectivity, efficiency, order, and consistency are the keys on how the
business can provide high quality product. It is not only affordable but it also
ensures consumers the effectivity and convenience of use of the product and
helps people relieve their pain in an organic way. Human Labor supply should
meet the labor that is demanded and required to operate the business. The
proponents will be having eight (8) employees to run and operate the business.
Product Concept
Specifications
  Organic
 Herbal
  Affordable
 Relieves pain
  Safe and easy to use
 Made from recycled materials
 Natural

● Benefits, Attributes and Features
Benefits
The main objective of the Ecoraphy Corporation is to create a product that
will help people who are experiencing irritating and uncomfortable feeling that
is caused by arthritis, gout, headaches, muscle aches and other inflammatory
symptoms. The product will surely benefit the mass since everyone knows
that these symptoms affects how one person work and function in its daily
lives. By using the product, an ailment that makes a person uneasy will be
cured from discomfort. The other benefits of the product is that it is safe,
organic, herbal, affordable, and effective. The pain could be minimized not
only because of the menthol crystals’ cooling effect but also because of the
healing properties that the main component of the ointment, which is the
Pansit-pansitan possesses. Unlike other ointments, the product has less

toxic chemicals that can harm the skin and prevent irritation because it is
more organic and natural.
Attributes
The special attributes that the product has is it is also human-friendly
since all of the ingredient are organic. Little chemical is added for immediate
medication effect but it doesn’t has a huge toxic effect on the skin. Mostly
people think this kind of plant is a worthless or ruining their gardens because
this plants is an intermittent but besides of being intermittent of it, it is rare
and worth to take care of because of the many benefit it brings.
Features
The Peperomia Ointment gives a relieving feeling that makes the pain and
itch fade because of the cooling sensation of the menthol and camphor. Aside
from its ability to spread and circulate the coolness of the ointment to the
body, it also has the ability to lessen the pain.
The Ecoraphy Corporation’s Peperomia Ointment package in a holistic

view will mostly touch the themes in the business plan which is to innovate a
product from the categories Recycled, Organic and Indigenous. The
ingredients for the ointment are mostly natural and organic, thus touching the
theme of organic.
Production Requirements and Processes
Ecoraphy Corporation’s suppliers in creation of Peperomia ointment are

the following:
1. Raw materials:
  
Patagonian Enterprises
  
Puljed Trading
  
Bustillo’s Garden
  
Balai Sagana
 
Unlipack Packaging
● Process of Extracting Pansit-pansitan Plant

Step 1: Wash, clean, and weigh the Pansit-pansitan samples
Step 2: Put the Pansit-pansitan in a big container and put the solvent, Ethanol
Step 3: Soak the samples in Ethanol for 24 to 48 hours
Step 4: Filter the samples and collect the filtrate
Step 5: Distill the filtrate and collect the pure extract

● Preparation of Pansit-pansitan (Peperomia Pellucida)

An anti-inflammatory, anti-microbial (against Salmonella typhi,
Pseudomonas aeruginosa, and Shigella Dysenteriae), Counterirritant, Menthol,
and Camphor ointment.
Active Substances:
● Tannins ● Phlobatannins
● Saponins● Tropane alkaloids
● Flavonoids● Isoquinoline alkaloids
● Terpenoids
Materials:
● Hot plate (1 pc)
● Thermometer (1 pc)
● Water bath (1 pc)
● 200 mL beaker (Pyrex or any heat resistant beaker) (1 pc)
● 200 mL graduated cylinder (1 pc)
● Digital analytical balance (1pc)
● Stirring rod (1 pc)
● Plastic Disposable Petri-dish (5 pcs)
● 250 mL Screw-top, leak-proof container (1 pc)
● Watch glass (4 pcs)
Chemicals:
● White beeswax (Melting point: 61° C) ● Menthol
● Hard paraffin (Melting point: 65° C) ● Camphor
● Cetostearyl alcohol (Melting point: 52° C)
● White soft paraffin or yellow soft paraffin
● Pansit-pansitan ethanolic extract
● Method for 150mg ointment

Step 1: Prepare the hot plate and set the hot plate temperature to 65 degrees
Celsius. Place the wire gauze on the top of the hot plate and the water bath
crucible on the top of the wire gauze then water to the crucible (at least half of
the crucible). Place the 200 mL beaker inside the water bath crucible and then
wait until the water temperature reaches 65 degrees Celsius.
Step 2: While waiting for the water to warm, prepare and weigh 3 grams of
Menthol, 5 grams of Camphor, 2 grams of White Beeswax, 3 grams of Hard
Paraffin, 5 grams of Cetostearyl Alcohol, 90 grams of White Soft Paraffin or

Yellow Soft Paraffin, and 25 mL of Pansit-pansitan extract (use the Graduated

cylinder to measure exact volume) using analytical balance.
Step 3: Once the chemicals are melted in a descending order of melting point,
the ingredient with the highest melting point is the first ingredient to be melted
before adding the next. Lastly add the Menthol and Camphor. The source of heat
is removed and the stirring is continued until the mass reaches 40-50 degrees
Celsius.
Step 4: Pour the product in a disposable petri-dish and add the extract while it is
still warm then continue stirring. Stop stirring when the extract and the wax forms
a homogenous solution then let it congeal at room temperature.
Packaging
Figure 3.1
Figure 3.2
The proponents chose the tin can packaging to ensure that the product is
sealed to avoid the ointment from being contaminated. It also ensures the

integrity of the product through its shelf life. The tin can has a crew top lid which
will ensure that the product inside is properly sealed for hygienic purposes.
The tin can container of the product is sealed in a paper packaging for the
convenience of the consumers to easily open and access the product .
The paper packaging has a paper with indications inside and the paper
packaging itself has information regarding the company and the product.
Overall, the proponents made the packaging with a goal of protecting the
product as well as promoting and raising awareness on the perspective of the
business organization.
Quality Control and Safety Measures

  Cleanliness inside and outside the store.
 There will be rules and regulations inside the store. This includes the
 following:
  
No eating and drinking inside the store.
  
No smoking inside the store
  
Employees should be on time
  
No using of cellphones while in the workplace
  
No bringing of firearms and sharp objects
 Store equipment for emergency situations
  
Fire extinguisher
  
First aid kit
 Store equipment to ensure customer’s safety
 
CCTV cameras’ inside and outside the store
The company will follow the rules and regulations of the Department of Trade
and Industry to guide the business in its operations and to ensure that
consumers’ right were not violated and will be served with an ensured high
quality product.
The quality of the product will be ensured by the following test:
● PH Level - Determining how safe the Peperomia Pellucida Ointment to the
skin.
● Antimicrobial Resistance (AMR) - Ability of Peperomia Pellucida Ointment to
defeat the E.Coli.
● Phytochemical Test - Chemical compound of Peperomia Pellucida which has
therapeutic activities.

CHAPTER 4: MANAGEMENT STUDY
Business Model
 Customer Segments
The researchers have segmented their target market demographically and
geographically. As per demographically, they have segmented their market
whose ages ranges from 40 years old and above who are starting to get
affected by joint pains like gout arthritis. While as per income, those who
belong to classes upper D to upper C classes are our specific target market.
While as per geographic segmentation, the urban, suburban and even

rural segment are the main target of the ointment because anyone could avail
the product as it is a first aid essential in a household. Any potential
customers with a desire to purchase the product may purchase the ointment
especially that it will be affordable for the mass to afford.
The most important customers of the proponents are the elders, especially
the ones who are experiencing joint pains and/or arthritis. They are the ones
who need the Peperomia Ointment the most and it is convenient from them to
apply the product directly to the affected area than taking it any medications
orally.
 Value Propositions
The main feature of the Peperomia Ointment will be the Pansit-pansitan
plant. Pansit-pansitan plant is known as a remedy for arthritis, gout, and any
joint problems that can arise as a person grows old. The product is organic,
affordable, and fit for the elders who have problems in their joints.
Peperomia Ointment have different sizes that the customer can choose
from. The smallest size that they can avail is 10g and the biggest is the 15g.
 Channels
Ecoraphy Corporation will place their stalls on commercialized
establishments because it is the most profitable place to allocate out stalls
since it is the most accessible location for the customers.
Customers can also obtain the necessary information that they need,
communicate with the team, and ask the questions that they ponder from the
online platform that Ecoraphy Corporation will provide.

 Customer Relationships
Ecoraphy Corporation focuses on creating a relationship that will
generate interaction between a sales representative and a potential customer.
Sales representative will assist the customers by helping them with their
purchase decision and provide facts and information about Peperomia
Ointment. Social media is another channel that will directly build a relationship
between the company and the customer.
 Revenue Streams
Revenue can be acquired through using different strategies. “Mid-Year
Fares” is an event that will provide customers free check-up if they purchase
an ointment with a minimum amount of PRICE. As a result of this, customers
will pass the information of Peperomia Ointment to other people. “Buy One
Get One Limited Edition Peperomia Ointment with Fragrance” promo will be
given for every anniversaries that will occur. The said promo will last for one
week and it will be labeled as “One Week Anniversary Promo.”
 Key Resources
Qualified chemist is an essential asset because they have to secure that
Peperomia Ointment is free from risk and make sure that the product is safe
to use by the customers. It is also necessary to place sales representative for
every stall because they are the ones who will offer the products and provide
the necessary information to the customers.
 Key Activities
The key activities would be the production activity of the Ecoraphy
Corporation. The company will manufacture a safe and effective ointment
through preparing an anti-microbial and anti-inflammatory ointment, control
the production of the ointment, manage the social media accounts of the
company, and should market and promote the Peperomia ointment to the
target market.
 Key Partnerships
The key partner of Ecoraphy Corporation is the Patagonian Enterprises
that will provide the laboratory materials that is needed to prepare the
Peperomia ointment.
 Cost Structure
Ecoraphy Corporation mostly spends on the rent because it has to be paid
every month and labour is also considered as one of the major expense of the
company because it has to be paid monthly along with the benefits and
allowances.

Figure 4.1

Organizational Structure
Figure 4.2
Ecoraphy Corporation created an organizational structure that provides

an efficient service productivity.
Management and Personnel
Every business has management personnel whereas every member of the
organization has a position in the company. It is important that a company has
each personnel assigned to a duty and responsibility suited and based on their
skills and knowledge because this is a way that a company would be efficient
and effective in terms of managing the business.
Recruitment
Recruitment is a phase where the management would attract, select and Figure 4.3
appoint employees who are candidates for the job position being offered either
permanently or temporarily.

Interview
An interview is a part of the hiring process where the human resource
management would assess the applicant. It is also the main source of
information for the employer about the candidate employee. The main objective
of an interview is to know the abilities of the applicant as well as the
comprehensive ability and the communication skills of the applicant.
Job Qualification
The Corporation will have a standard and requirements that an applicant
should have for him to be able to get a position or a job in the company.
Appraisal
The process that examines and evaluates an employee’s work and

behavior by comparing it with preset standard, documents the results of the
comparison and uses the result to provide feedback about the employee.
Training and Development
This is also an important part of the management of the business because

once the employee has been hired, every company should provide a training and
development programs to improve the capabilities and broadened the knowledge
of the employees by requiring them to attend seminars and conferences then
later on, the knowledge that they will acquire will be used for the benefit of the
corporation.
Pre-Employment Requirements
 Medical Certificate
 Duly authenticated birth certificate
 Barangay and police clearance
 NBI (National Bureau of Investigation) clearance
  Curriculum Vitae or resume
Pre-employment requirements – prior to the execution of the employment
contract, an employer should/may require the following documents:
 Medical certificate issued by a local government health officer
 Barangay police and clearance
 NBI clearance
 Duly authenticated birth certificate or an NSO copy

 Biodata or resume that contains information about the employee

Chief Executive Officer
● Job Description
➢ The Chief executive officer is the one who supervise, control or
manages all strategic and business aspect of the whole company
● Job Specification
➢ Should have a MBA degree.
➢ At least 10 years of experience in business
● Gross Income
➢ ₱ 250,000 – ₱ 500,000 per month
● Benefits
➢ SSS, PAG-IBIG, and PhilHealth contribution
➢ Fuel Allowance
➢ Transportation Service
➢ Meal Allowance
➢ Commission
➢ Yearly increase in salary
Admin and Human Resource Associate
● Job Description
➢ The one who assist in the management of the company’s human
resource
● Specifications
➢ Should have 2 to 3 years of experience
➢ Graduate of Human Resource Management program or
Psychology program
● Salary
➢ ₱ 25,000 – ₱ 30,000 per month
● Benefits
Logistics
● Job Description
➢ Manages all the logistic functions in the corporation. Plans and
organizes the activities of the company
● Specifications
➢ Manages all the logistic functions in the corporation. Plans and
organizes the activities of the company
➢ Should have at least 2 years of experience

➢ Graduate of Business Management program

● Salary
➢ ₱ 12,000 – ₱ 17,000 per month
● Benefits
Driver
● Job Description
➢ The one who delivers the supply of products in different branches
● Specifications
➢ The one who delivers the supply of products in different branches
➢ Should have at least 2 to 3 years of experience
● Salary
➢ ₱ 5,000 - ₱ 10,000 per month
● Benefits
Chemist
● Job Description
➢ People who are assigned with the task of making the oil essential
● Specification
● Salary
➢ ₱ 15,000 - ₱ 20,000 per month
● Benefits
Pharmacist
● Job Description
  
Helps find the prescribed medicine
● Specification
➢ Registered and licensed Pharmacist
● Salary
➢ ₱ 15,000 - ₱ 17,000 per month
● Benefits
Accountant
● Job Description

➢ Accountant is the one who prepares the financial statements of the

company
● Specifications
➢ Should have at least 2 years of experience
➢ Graduate of accountancy or internal auditing program
● Salary
➢ ₱ 25,000 – ₱ 30, 000 per month
● Benefits
➢ SSS, PAG-IBIG PhilHealth contribution
Public Relation
● Job Description
➢ Is the one who plans and implement the advertisements as well as
the public relation of the corporation with other corporations
● Specifications
➢ Graduate of Marketing Management Program
● Salary
➢ ₱ 25,000 per month
● BenefIts
➢ SSS, PAG-IBIG PhilHealth contribution
Sales Associate
● Job Description
➢ Manages the sales of the product of the corporation and plans
strategies to improve the overall sales of the corporation
● Specifications
➢ Manages the sales of the product of the corporation and plans
strategies to improve the overall sales of the corporation
➢ Graduate of Marketing Program
● Salary
➢ ₱ 15,000 – ₱ 20, 000 per month
● Benefits
Company Policies
 Arriving at the office late is not tolerated by the company. Hours of tardiness
will be paid by overtime of the employee to complete the 8 hour shift.

 Absences without prior notice will be deducted to the employee’s monthly

 payroll.
 Sick leave and vacation leave are strictly followed. Employees should submit
a prior notice regarding the leave and shall be approved by the Human
Resource Department. Each employee will be entitled with 15 SLs and 15
 VLs.
 Dress code policy of corporate attire and a casual attire (for wash day) is
strictly followed. In the event that the employee failed to follow the dress code
 policy, the employee will be given a penalty.
 Anti-harassment and anti- bullying policy within the office is implemented and
practiced.
Intellectual Property
All the intellectual property rights of this research of Ecoraphy Corporation

are owned by the Proponents. The Proponents plan to register its name and also
the tagline of the business and the following are the list of permits/license needed
to accomplish:
1. Bureau of Internal Revenue
 Security Exchange Commission Documentary Requirements for

 Registration of Corporations
 Lease Contract/Agreement/Certification
 Location Map of Business
  BIR Form (1901) Mixed-income and self-employed individuals
 BIR Form (1904) One-time taxpayer who just rendered business in the
Philippines for a year

2. Security Exchange Commission
 Verification Slip
 Articles of incorporation and by-laws
 Joint affidavit
 SSS Employer’s Registration
 PhilHealth Employer’s Registration
 PAG-IBIG Employer’s Registration
 Department of Labor and Employment

3. Mayor’s and Barangay Clearance

 Application Form
 Photocopy of SEC Requirements for Registration of Corporations
 Community Tax Certification
 Location Map of Business
 Lease Contract/Agreement/Certification
 Barangay Clearance
 SSS
4. Building Permit and Electrical Inspection Certificate
 Lot Plan
 Fire Safety Requirements
 Contract of Lease and Authorization of Owner
 Tax Declaration
 PRC of the Engineer

5. Fire Safety Inspection Certificate
 Building Plan
 Building Permit
 Barangay Business Clearance
  Fire Insurance Coverage
 Compliance to Requirements and Recommendations from Fire Safety
Inspectors

6. Sanitary Permit
 Chest X-ray
 1x1 Picture
 Inspection of said establishment
 Sanitary Permit Fee
 Payment of Sanitary Permit and Sanitation Inspection Fees
 Medical Certificate / Health Card issued by the City Health Officer

CHAPTER 5: FINANCIAL STUDY
Capital Requirements
Ecoraphy Corporation
STATEMENT OF FINANCIAL POSITION Table. 5.1
PROJECTION
As of End of: Year 1 Year 2 Year 3 Year 4 Year 5
ASSETS
Current Assets
₱3,247,0 ₱4,071,16 ₱4,176 ₱3,702 ₱3,713

Cash and cash equivalents
05 5 ,270 ,036 ,284
539,93 777,50 1,119,6
Accounts receivable 260,384 374,952
1 1 02
490,75 684,88 955,15
Total inventory 245,974 349,771
8 8 1
3,753,36 5,206,9 5,164,4 5,788,0

Total current assets 4,795,888
2 59 25 36
Non Current Assets
3,152,2 4,329,8 5,571,5

Property, Plant and Equipment 987,336 2,038,087
53 34 05
Less: Accumulated (197,467 (1,235, (2,101, (3,215,
(605,085)
Depreciation ) 535) 502) 803)
1,916,7 2,228,3 2,355,7
Net Book Value 789,869 1,433,002
18 32 02
Intangible Assets 3,192 3,192 3,192 3,192 3,192

Less: Accumulated
- - - - -
Amortization
3,192 3,192 3,192 3,192 3,192
1,919,9 2,231,5 2,358,8

Total Non Current Assets 793,061 1,436,194
10 24 94

PELLUCIDA
₱4,546,4 ₱6,232,08 ₱7,126 ₱7,395 ₱8,146

TOTAL ASSETS
23 3 ,869 ,949 ,930
LIABILITIES
Current Liabilities
₱245,97 ₱490,7 ₱684,8 ₱955,1

Accounts payable ₱349,771
4 58 88 51
490,75 684,88 955,15

Total Current Liabilities 245,974 349,771
8 8 1
Noncurrent Liabilities
Long-term debt/loan - - - - -
490,75 684,88 955,15

TOTAL LIABILITIES 245,974 349,771
8 8 1
EQUITY
4,596,59 7,596,5 7,596,5 7,596,5

Total Paid-in capital 6,596,598
8 98 98 98
(296,149 (960,48 (885,53 (404,81
Retained Earnings (714,286)
) 6) 6) 8)
4,300,44 6,636,1 6,711,0 7,191,7

TOTAL EQUITY 5,882,311
9 11 61 79
TOTAL LIABILITIES AND ₱4,546,4 ₱6,232,08 ₱7,126 ₱7,395 ₱8,146

EQUITY 23 3 ,869 ,949 ,930
© 2017 FEU-IABF Department of Accountancy. All rights reserved.
Table 5.2 shows that the first 3 years are loss but the following

years are increasing in terms of profit.
Statement of Comprehensive Income
Ecoraphy Corporation Table. 5.2

PROFIT OR LOSS PROJECTION
Year Year Year Year
For the Year Ended: Year 5
1 2 3 4
Revenues
₱3,16 ₱4,56 ₱6,56 ₱9,45 ₱13,6

Revenues
8,000 1,920 9,165 9,597 21,820
3,168, 4,561, 6,569, 9,459, 13,621

Total Revenue
000 920 165 597 ,820
Direct Costs
2,951, 4,197, 5,889, 8,218, 11,461

Cost of Revenues
688 257 091 652 ,810
2,951, 4,197, 5,889, 8,218, 11,461

Total Direct Costs
688 257 091 652 ,810
216,3 364,6 680,0 1,240, 2,160,

Gross Profit
12 63 74 945 010
Operating expenses
60,00 61,80 63,65 65,56
Payroll and Related Expenses 67,531
0 0 4 4
30,00 15,45 15,91 16,39
Professional fees 16,883
0 0 4 1
Office supplies 35,00 36,05 37,13 38,24 39,393

PELLUCIDA
0 0 2 5
79,08 81,45 83,89 86,41
Insurance 89,005
0 2 6 3
19,70 31,05 43,40
Repairs and maintenance 9,350 56,750
0 0 0
36,00 37,08 38,19 39,33
Utilities (Communication, Light and Water) 40,518
0 0 2 8
120,0 144,0 168,0 192,0 324,00
Rent
00 00 00 00 0
64,00 385,0 364,0 370,0 500,00
Sales and marketing
0 00 00 00 0
51,00 37,08 38,19 39,33
Transportation and Travel 40,518
0 0 2 8
57,55 24,39 25,12 25,87
Taxes and Licenses 26,652
2 0 2 6
20,00 20,60 21,21 21,85
Representation and Entertainment 22,510
0 0 8 5
40,00 20,60 21,21 21,85
Seminars, Trainings and Subscriptions 22,510
0 0 8 5
Other - - - - -
601,9 883,2 907,5 960,2 1,246,

Total Operating Expenses
82 03 88 74 270
Earnings Before Interest, Taxes, Depreciation and (385, (518, (227, 280,6 913,74
Amportization (EBITDA) 670) 539) 514) 71 0
Depreciation, Amortization and Interest

37,40 78,80 124,2 173,6 227,00
Depreciation and Amortization
0 0 00 00 0
Interest expense - - - - -
37,40 78,80 124,2 173,6 227,00

Total Depreciation, Amortization and Interest
0 0 00 00 0
(423, (597, (351, 107,0 686,74

NET INCOME (LOSS) BEFORE TAX
070) 339) 714) 71 0
TAX RATE* 30% 30% 30% 30% 30%
INCOME TAX EXPENSE (BENEFIT) (126, (179, (105, 32,12 206,02

PELLUCIDA
921) 202) 514) 1 2
(₱296 (₱418 (₱246 ₱74,9 ₱480,

PROFIT OR (LOSS)
,149) ,138) ,200) 50 718
*Corporations and Partnerships are subject to 30% Regular Corporate
Income Tax
Table5. shows that the first 3 years are loss but the
following years are increasing in terms of profit.
Statement of Changes in Equity
STATEMENT OF CHANGES IN
Table. 5.3
EQUITY
For the Year: Year 1 Year 2 Year 3 Year 4 Year 5
EQUITY
₱4,300,4 ₱5,882,3 ₱6,636,1 ₱6,711,0

Beginning of The Year ₱-
49 11 11 61
Additional Investments 4,596,598 2,000,000 1,000,000 - -
Withdrawals - - - - -
Profit or Loss (296,149) (418,138) (246,200) 74,950 480,718
TOTAL EQUITY END OF THE ₱4,300,4 ₱5,882,3 ₱6,636,1 ₱6,711,0 ₱7,191,7

YEAR 49 11 11 61 79

© 2017 FEU-IABF Department of Accountancy. All rights

reserved.
Statement of Cash Flows
STATEMENT OF CASH
FLOWS Table. 5.4
For the Year Ended: Year 1 Year 2 Year 3 Year 4 Year 5
Operating activities
(₱423,07 (₱597,33 (₱351,71 ₱107,07 ₱686,74

Net income
0) 9) 4) 1 0
Add back:
Depreciation and 1,114,30
197,467 407,617 630,451 865,967
Amortization 1
Change in Current
Assets/Current Liabilities
Accounts receivable (260,384) (114,569) (164,979) (237,570) (342,101)
Inventories (245,974) (103,797) (140,986) (194,130) (270,263)
Accounts payable 245,974 103,797 140,986 194,130 270,263
1,458,94
Total operating activities (485,986) (304,291) 113,757 735,468
1
Taxes Paid 126,921 179,202 105,514 (32,121) (206,022)

1,252,91
Net operating activities (359,065) (125,089) 219,272 703,347
9
Investing activities
(1,050,75 (1,114,16 (1,177,58 (1,241,67

Capital expenditures (990,528)
1) 6) 1) 1)

(1,050,75 (1,114,16 (1,177,58 (1,241,67

Total investing activities (990,528)
1) 6) 1) 1)
Financing activities
Long-term debt/financing - - - - -
4,596,59 2,000,00 1,000,00 2,000,00
Capital contribution -
8 0 0 0
Withrawals - - - - -
4,596,59 2,000,00 1,000,00 2,000,00

Total financing activities -
8 0 0 0
3,247,00 2,011,24
Net Cash flow During the Year 824,160 105,106 (474,234)
5 8
3,247,00 4,071,16 4,176,27 3,702,03

Beginning cash balance -
5 5 0 6
₱3,247,0 ₱4,071,1 ₱4,176,2 ₱3,702,0 ₱5,713,2

Ending cash balance
05 65 70 36 84
© 2017 FEU-IABF Department of Accountancy. All rights

reserved.
Financial Ratios and Analysis
Table. 5.5
FINANCIAL HIGHLIGHTS
Liquidity Ratios Year 1 Year 2 Year 3 Year 4 Year 5
Current Ratio 15.26 13.71 10.61 7.54 6.06

PELLUCIDA
Quick Ratio 14.26 12.71 9.61 6.54 5.06

• Liquidity ratios measure the company's ability to pay off its short-term obligations. Generally, the
higher the value of the ratio, the larger the margin of safety that the company possesses to cover
short-term debts.
• Current Ratio is a liquidity ratio that measures a company's ability to pay-off its short-
term liabilities with its current assets.
• Quick Ratio is also a financial ratio used to gauge a company's liquidity. It is a more stringent measure
of liquidity than current ratio because unlike current ratio which assumes all current assets are available
to settle short-term debts, quick ratio limits the calculation to cash, marketable
Solvency Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Shareholder's Equity Ratio 95% 94% 93% 91% 88%
Leverage Ratio 5% 6% 7% 9% 12%
• Solvency Ratio measures the company's ability to meet its long-term obligations.
• Sharehoder's Equity Ratio represents the amount of assets on which the shareholders or
owners have a residual claim.
• Leverage Ratio measures the risk that the company is exposed from debt financing. It shows how
much capital comes in the form of debt or loans and assesses the company's ability to meet long
Profitability (Return) Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Return on sales or gross income -9% -9% -4% 1% 4%
Return on equity (debt plus equity) -7% -7% -4% 1% 7%
Return on assets -7% -7% -3% 1% 6%
Asset turnover 70% 73% 92% 128% 167%
Percentage of EBITDA to gross
revenue -178% -142% -33% 23% 42%
• Profitability Ratios are a class of financial measurements that are used to assess the company's
ability to generate earnings as compared to its expenses and other relevant costs incurred during a
specified period.
Break even sales in Units Year 1 Year 2 Year 3 Year 4 Year 5
Total Sales in Units to Break Even 128,446 153,189 150,070 146,140 150,815

Break even sales in Pesos Year 1 Year 2 Year 3 Year 4 Year 5
6,617,77 7,779,65 9,091,09 11,258,2

Total Sales in Pesos to Break Even 4,624,071 3 3 2 79
• Breakeven point is the level of sales needed to cover the company's fixed and variable expenses
during a specified period of time. Composite breakeven point considers the sales mix structure to
arrive at required sales to break even.
Payback Period
No. of Years to Recover Initial
Investment 366.62
• Payback Period measures the total number of years needed to recover the initial investment used
to start or operate the business.
© 2017 FEU-IABF Department of Accountancy. All

rights reserved.

CHAPTER 6: SOCIO-ECONOMIC STUDY
Sustainable Community
By using the product, it can help in the health issues relating to joint and
muscles pains. It is known that arthritis are inevitable since as people grow old,
they tend to have weaker bones and veins as compared when they were
younger. Though being said that it’s inevitable, it can still be healed and
remedied by the use of the product because having a gout or arthritis can be very
painful and inconvenient for a person. When people use the product, it can
minimize the risk and pain of a person. As the corporation will open, employment
is yielded because it will be needing new hires as employees of the company in
different designated positions. With that, it can help people to earn income and
lower the unemployment rate in the certain area. Lack of decent jobs are one of
the reason why poverty arise in Philippines. To be able to contribute with the
growth and development of the country in a holistic view, providing employment
could be one of the solutions. The environmental issues that could arise in the
operation of the business is the risk of having a bad weather. Since the plant
Peperomia Pellucida could easily be drowned by the water. It could disturb the
overall production process of the ointment when the plant has been destroyed.
Aside from having a storm, excessive heat of the sun could also be one of the
problems as the plant could wither with the excessive direct heat of the sun. In
the event that there is a storm and other weather-related issues that are
inevitable to arise, the operation of business is deferred for a while until the
weather gets better and normal. The environmental issue that any business will
face is the maintenance of the raw materials and tools as time goes by. Some of
the machines utilized could deteriorate and depreciate while the tools can be
destroyed. The production of waste is also an environmental issue that a
business could produce. Health issues could also arise in manufacturing the
product for the personnel. However, businesses should be responsible enough to
handle these situations. The waste will be disposed properly and recycle the
containers and reuse them so long as it is properly sanitized and cleansed. When
the customers gave back the containers, they can be given a discount on their
next purchase. This is to reduce the single usage of the container as it is acrylic.
It could cause an expense to the company but it needs to be complied on so that
the operation of the business will not harm and help the environment in some
way. In return, it will be part of the corporation’s CSR or corporate social
responsibility and it may entice the customers for its goodwill.

APPENDICES


2.
A. Profile
Gender:
Table
Female 73 73%
Male 27 27%
Total 100 100%
GENDER MALE
27%
FEMALE
73%
Figure shows that 73 respondents are female. The remaining 27 respondents are
male. There is a large discrepancy between the numbers of male and female
since in a household, the female members are more likely interested in
ointments.
Age:
Table
18-25 18 18%
26-30 18 18%
31-35 11 11%
36-40 8 8%
41-50 23 23%
50 and up 22 22%
Total 100 100%

AGE [CATEGORY
[CATEGORY
NAME] NAME]
22% 18%
[CATEGORY
NAME]
[CATEGORY 18%
NAME]
23% [CATEGORY [CATEGORY
NAME] NAME]
8% 11%
Figure shows that both 18-25 and 26-30 have 18 respondents, 11 respondents
are ages 31-35, 8 respondents are ages 36-40, 23 respondents are ages 41-50
and 22 respondents are ages 50 and up.
B. Survey Questions
1. Have you heard about organic ointments?
Table
Yes 80B 80%
No 20 20%
Total 100 100%
HAVE YOU HEARD ABOUT ORGANIC
[CATEGORY
NAME] OINTMENTS
20%
[CATEGORY
NAME]
80%
Figure shows that 80% of the respondents heard the organic ointments and 20%
of it haven’t heard organic ointments.

2. Are you familiar with organic ointments?
Table
Response In In
numbers percentage
Yes 58 58%
No 39 39%
No answer 3 3%
Total 100 100%
ARE YOU FAMILIAR ABOUT ORGANIC

OINTMENTS
No answer
No
Yes
Figure shows that 58% of the respondents are familiar with organic ointments
and 39% are not while 3% didn’t answer the question.
3. Have you heard about Pansit-pansitan plant?

Table
Response In numbers In
percentage
Yes 65 65%
No 35 35%
Total 100 100%
HAVE YOU HEARD ABOUT
PANSIT-PANSITAN PLANT?
No
Yes

Figure shows that 65% of the respondents have heard the Pansit-pansitan plant
while 35% are not familiar with it.
4. Do you know that Pansit-pansitan plant can use in curing sore throat, arthritis,
Gout, Pimples and wounds?
Table
Yes 29 29%
No 71 71%
Total 100 100%
No
Yes
Figure shows that 29% of the respondents know that Pansit-pansitan plant can
cure sore throat, Arthritis, gout, pimples and wounds while 71% didn’t know.
7. Do you think organic ointments are safe and trusted?
Table
Yes 80 80%
No 5 5%
Uncertain 15 15%
Total 100 100%

DO YOU THINK ORGANIC

OINTMENTS ARE SAFE AND
TRUSTED?
Uncertain
No
Yes
Figure shows that 80% of the respondents think that organic ointments are safe
and trusted while 5% unanswered no and 15% are uncertain.
8. What qualities are you looking for organic ointments?
Table
Effectiveness 43 43%
Affordable 20 20%
Scent 8 8%
Safety 22 22%
Good Packaging 7 7%
Total 100 100%
WHAT QUALITIES ARE YOU LOOKING

FOR ORGANIC OINTMENTS?
Good
Packaging
Safety Effectivenes
s
Scent
Affordable
Figure shows that 43% of the respondents are looking for effectiveness of the
product, 20% are depending on affordability, 8% are basing on the scent,
22% are depending into safety and 7% are looking for a good packaging.

12. How important are the following for you?

Table
Response 4 3 2 1 Total
Uniqueness 15 12 16 19 62
Design 10 12 14 13 49
Price 30 13 31 10 84
Eco- 18 36 16 9 79
friendliness
Trend 10 11 8 7 36
Effectiveness 44 11 12 23 90
400
HOW IMPORTANT ARE THE FOLLOWING

FOR YOU?
Uniqueness
Effectiveness
Design
Trend
Eco- Price
friendliness
Figure shows that out of 400 responses, 62 respondents says that
uniqueness is important, 49 respondents think that design is important,
84 for price, 79 for eco-friendliness, 36 for trend and 90 respondents
says that effectiveness is the most important.
 Are you easily persuaded on advertisements?

Table
Yes 21 21%
No 23 23%
Sometimes 56 56%
Total 100 100%

ARE YOU EASILY PERSUADED ON

ADVERTISEMENTS?
Yes
Sometimes
No
Figure shows that 56% of the respondents are sometimes persuaded by

advertisements while 21% of respondents says that they are persuaded by it
while 23% said no about the question.
 If you saw Pansit-pansitan plant ointment on televisions, print ad, social

media and other advertising platforms, would you buy?
Table
Response In numbers In
percentage
Yes 76 76%
No 24 24%
Total 100 100%
IF YOU SAW PANSIT-PANSITAN PLANT OINTMENT ON

TELEVISIONS, PRINT AD, SOCIAL MEDIA AND OTHER
ADVERTISING PLATFORMS, WOULD YOU BUY?
No
Yes
Figure shows that 76% of the respondents would buy Pansit-pansitan Ointment if
they saw it on Television, print ads, social media and other advertising platforms
while 24% of the respondents said that they wouldn’t buy it.
 If you saw this Pansit-pansitan in market, would you still buy this or you will
stay with the branded ointments you use?
Table

PELLUCIDA
Yes 60 60%
No 25 25%
Uncertain 13 13%
No answer 2 2%
Total 100 100%
IF YOU SAW THIS PANSIT-PANSITAN IN MARKET, WOULD YOU STILL BUY

THIS OR YOU WILL STAY WITH THE BRANDED OINTMENTS YOU USE?
Uncertain
No answer
No
Yes
Figure shows that 60% responded yes if they saw pansit-pansitan in the market
they would buy and 25% says no while 13% is uncertain about and 2% didn’t
answer the question.
Historical Demand
Population Age (41 Market Historical

and up) Acceptance Demand
2013 2,862,397 743, 352 62% 460,878
2014 2,896,803 765,054 62% 474,333
2015 2,936,116 787,775 62% 488,420
2016 2,971,349 811,693 62% 503,249
2017 3,007,005 836,887 62% 518,869

Projected
Demand
Y_Initial Initial Demand 460,878
Y_Final Final Demand 518,869
N Years from 2013 to 2017 4
i Year
Y_c Current Year Demand Estimate
Y_i Historical Demand at Year “I”
Annual Growth Rate 3%
Historical Demand Y_c Y_i-Y_c

Demand from
(Y_i) Previous
Year
(Y_i-1)
2013 460,878
Historical 2014 474,333 14,498 460,878 475, -1,042.75
Calibration 375.75
2015 488,420 14,498 474,333 488,830.75 -410.75
2016 503,249 14,498 488,420 502,917.75 331.25
2017 518,869 14,498 503,249 517,746.75 1,122.25
2018 533,366.75
Projected
Demand 2019 547,864.50
2020 562,362.75
2021 576,860.00
2022 519,357.75

Histo
Annual Historical Supply rical
Supp
2013 103,660 117,486
ly
2014 117,486 131,313
2015 131,313 145,543
2016 145,543 160,195
2017 160,195 175,292
Population Projected Demand

2018 175,293 190,859
2019 190,859 206,425 Proj
2020 206,425 222,458 ecte
2021 222,458 238,958 d
2022 238,958 255,939 Sup
ply
Area and Location:

Eric Commercial Inc., San Fernando, Pampanga. 1400sqm

Floor Plan:
Office and Manufacturing site


Raw Materials
● White beeswax

● Hard paraffin
● Pansit-pansitan ethanolic extract
● Cetostearyl alcohol
● Menthol
● Camphor
● White soft paraffin or yellow soft

paraffin

https://www.statista.com/statistics/309425/prescription-drugs-market-shares-by-
top-companies-globally/
https://www.olx.ph/item/new-san-fernando-commercial-complex-lot-for-
sale-ID8snNI.html?h=c726cc3c29
https://www.statista.com/statistics/309425/prescription-drugs-market-shares-by-
top-companies-globally/
https://scialert.net/abstract/?doi=rjphyto.2011.48.53
https://www.researchgate.net/publication/235337469_Antifungal_compounds_fro
m_Peperomia_pellucida?fbclid=IwAR3SJPMtxDbaP30IQal-
4T3o9kIchrSb1ObW8TtAdY84Ey_He8nqwZZedqw
https://eurekamag.com/pdf/003/003646441.pdf?fbclid=IwAR1mXmn8HQGX5cGy
bz9yw1w3jnD7ErBn91PN5gzGbR7RD3FLnP4bcEBT_dQ
https://www.ncbi.nlm.nih.gov/pubmed/10904155?fbclid=IwAR00HL-
HkrTFbUd8BljYcMnrcI-r4aTPzar_R3oVvYRUmgUG6hDEtr-Vi7w
https://psa.gov.ph/content/highlights-philippine-population-2015-census-
population
https://psa.gov.ph/content/quezon-city-population-peaked-28-million-results-
2010-census-population-and-housing
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC113267/

R.U. Egwuche, A.A. Odetola and O.L. Erukainure, 2011. Preliminary

Investigation into the Chemical Properties ofPeperomia pellucida L.. Research
Journal of Phytochemistry, 5: 48-53.
Ragasa, C.Y., M. Dumato and J.A. Rideout, 1998. Antifungal compounds from
Peperomia pellucida. ACGC Chem. Res. Commun., 7: 54-61.
Bojo, A.C., E. Albano-Garcia and G.N. Pocsidio, 1994. The antibacterial activity
of Peperomia pellucida (L.) HBK (Piperaceae). Asia Life Sci., 3: 35-44.
Munoz, V., M. Sauvain, G. Bourdy, S. Arrazola and J. Callapa et al., 2000. A

search for natural bioactive compounds in Bolivia through a multidisciplinary
approach: Part III. Evaluation of the antimalarial activity of plants used by Altenos
Indians. J. Ethnopharmacol., 71: 123 -131.
Seed germination, phenology, and antiedematogenic activity of Peperomia

pellucida (L.) H. B. K.

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FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

FEASIBILITY STUDY OF OINTMENT USING

RECOMMENDATION AND APPROVAL SHEET

This undergraduate business plan paper entitled:FEASIBILITY STUDY OF

BUSINESS PLAN REVIEW PANEL

Approved by the Committee on Oral Defense with a grade of ________.

VON KIRBY P. GERMAN

Accepted and approved in partial fulfilment of the requirements for the

ALMA EMERITA V. DELA CRUZ

The proponents would like to express their gratitude to the following

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | ii PELLUCIDA

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | iii PELLUCIDA

On the last part of the paper, it discusses the socio-economic aspect,

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | iv PELLUCIDA

RECOMMENDATION AND APPROVAL SHEET .............................................................................................I

EXECUTIVE SUMMARY ............................................................................................................................ III

TABLE OF CONTENTS ............................................................................................................................... V

LIST OF TABLES ...................................................................................................................................... VII

LIST OF FIGURES ...................................................................................................................................... IX

CHAPTER 1: INTRODUCTION .................................................................................................................... 1

FORM OF BUSINESS .......................................................................................................................................... 1

CHAPTER 2: MARKET STUDY .................................................................................................................... 4

MARKET ANALYSIS ........................................................................................................................................... 4

CHAPTER 3: OPERATIONS AND PRODUCTIONS STUDY ........................................................................... 20

PRODUCTION REQUIREMENTS AND PROCESSES...................................................................................................... 21

CHAPTER 4: MANAGEMENT STUDY ........................................................................................................ 25

BUSINESS MODEL .......................................................................................................................................... 25

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | v

INTELLECTUAL PROPERTY ................................................................................................................................. 33

CHAPTER 5: FINANCIAL STUDY ............................................................................................................... 35

CAPITAL REQUIREMENTS ................................................................................................................................. 35

CHAPTER 6: SOCIO-ECONOMIC STUDY ................................................................................................... 44

SUSTAINABLE COMMUNITY .............................................................................................................................. 44

SEED GERMINATION, PHENOLOGY, AND ANTIEDEMATOGENIC ACTIVITY OF PEPEROMIA

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | vi PELLUCIDA

Table 2.1 Projected Sales

Table 2.2 Price for 10g

Table 2.3 Price for 15g

Table 2.4 Gender

Table 2.5 Age

Table 2.6 Marketing Research 1

Table 2.7 Marketing Research 2

Table 2.8 Marketing Research 3

Table 2.9 Marketing Research 4

Table 2.10 Marketing Research 5

Table 2.11 Marketing Research 6

Table 2.12 Marketing Research 7

Table 2.13 Marketing Research 8

Table 2.14 Marketing Research 9

Table 2.15 Marketing Research 10

Table 2.16 Marketing Research 11

Table 5.1 Statement of financial position

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | vii PELLUCIDA

Table 5.2 Profit and loss

Table 5.3 Statement of Changes of Equity

Table 5.4 Statement of Cash Flow

Table 5.5 Financial Highlights

FEASIBILITY STUDY OF OINTMENT USING PEPEROMIA P a g e | viii PELLUCIDA

Figure 1.1 Logo

Figure 1.2 Packaging

Figure 2.1 Historical Demand

Figure 2.2 Projected Demand