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CHAPTER I EXECUTIVE SUMMARY Company Profile Pop Cake is the chosen name of the proponents for the business. It is a corporation composed of eight fourth year high school students that offers a mission to provide the best quality of Cake pops to its consumers in the most reasonable price. Pop Cake is located at 2nd floor, Market Market, Makati City. Nature of the Products Being Offered Pop cake offers a wide variety of different kinds of Pop cakes such as: Chocolate coated Popcake Vanilla coated Popcake Blue coated Popcake Chocolate Popcake Vanilla Popcake

Size and Growth Trend of the Market Food and beverage industry is visibly growing from year to year. Even the numbers of establishments are getting a large number from year to year. It means that the proponents would surely have a large number of competitors here in the Food and Beverage Industry every year. Our targets are starting from toddlers to adults who still have the sweet tooth as they call it.

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Make-up and Background of the Management The following are the composition of the management team: The General Manager will be responsible for handling the final approvals before taking in action. He will make the final decisions and the one who assigns the three main executives with their tasks. The Human Resources Committee is responsible for the sales and marketing activities of the company. The Sales Committee manager of the business will be the one analyzing on which makes effective and efficient on ways of handling financial reports, accounting, and all kinds of financial analysis for the business. The manager of the Service Committee will be responsible for strategy formulation and other fields regarding in dealing with people for the product Financing requirements POPCAKE is committing Php 15,000.00 in the starting the start-up of this venture, will be used for the rental of the place, advertisement, buying of supplies and equipments needed.

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Key Projections The table below shows the forecasted sales for the next few years: POPCAKE Sales Gross profit Net Income 2015 30,000 25,000 20,000 2018 50,000 50,000 40,000 2020 80,000 75,000 60,000 2022 100,000 90,000 80,000 2024 150,000 125,000 100,000

Sales Forecasting is an important part of the business management. Sales forecasting helps the proponents to get a solid idea of what your future sales are going to be to help you manage your inventory and plan for growth. Proposed use of funds Every business has proposed use of funds and since Popcake will be starting as a small private company it would be better to divided the funds into two(2) namely; the gear-up and the operating expenses. All the money that the business will profit from the business belongs to the gear-up category. These sub-categories come in like rent deposits, starting inventory, down payments on equipment and properties. As for the operating expenses, it composes of the costs of keeping the business running smoothly. Like salaries, rent, supplies, utilities, raw materials and other expenses concerning the business.

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Proposed Exit Strategy `If in the future the proposed entry strategies will not be successful and isnt going as planned then the owners of the corporation has implemented essential measures and practices to exit the business properly. All equipment and other merchandise will be sold to pay for any current debts. Other remaining debts will be paid by the owners through monthly payments until the payments are completed.

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CHAPTER II BUSINESS DESCRIPTION Mission Statement The proponents commit themselves to provide quality Pop Cakes that will satisfy the taste of our consumers through Appearance and Palatability. Their mission is to establish a corporation that will create cake pops with quality in the most reasonable price. In addition, they also aim to sell remarkably delicious and healthy foods that will meet the highest standards of quality, by providing our customers with the best service.

History Behind the idea The Idea was conceptualized in the late nineties; POP CAKE is the worlds first commercial-grade lollipop cake. Globally over twenty million pancakes are eaten on a daily basis. Traditionally an American breakfast staple, pancakes are currently enjoying increased popularity in many countries around the world. One of those countries is the Philippines. Since Filipinos are fond of imported product and goods the POP CAKE business will be a good marketing experience because of the wide-ranging number of people/ children who love to eat sweets. The proponents chose this product because of its quality and its increasing popularity demand from the consumers especially children thus, made the proponents an idea to put up a small business like this.

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Companys proposed Legal form The proposed legal form of this business is Corporation. This company is formed in which the proponents are the board of directors. They will manage and contribute to the needed capital for business and will be equally liable for its debts. Members will provide 15,000 pesos each for us to come up with the target capital 45,000 pesos to establish the business. The initial money that will give individually will be coming from our savings, allowance, and small contribution coming from our parents that supports us to pursue our business. The corporations profits or losses are passed through the owners. It is a domestic business which will not have more than 25 stock holders. The share holders then must report profits as supplemental income. Our company, does not pay taxes on profits also double taxes is avoided. Application for Registration

FORM I: Business Permit

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WHAT IS BUSINESS PERMIT? A business permit is a type of legal authorization to operate a business in a city, county, or state. A permit may even be required on a federal level. Typically issued in document form, a business permit gives a business owner the right to conduct entrepreneurial activities as set forth in the permit application. The Business requires having a permit in order to operate legally within the city. The bylaw allows the City to ensure that public health and safety regulations are addressed by businesses when the public has access. In most cases, a company will need a business license to operate. The licenses and permits needed will depend on the type of business and the location where the company resides. Here are the following ways on getting a business permit. 1. Find out which licenses and permits are required by your city or county. Do this by contacting your local city or county government office. 2. Submit your application. Basic information is needed, such as firm name, contact details and location, individuals affiliated with the company and type of establishment. 3. Get your certificate. Once an application is approved, the business permit is generally mailed to the business owner within a few weeks. Permit need to be renewed annually. Lastly, we could get a business permit in the local city or municipality.

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Sec Permit

FORM II: Securities and exchange of commissions (SEC) permit Securities and Exchange Commission is a federal agency which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the Philippines.

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Employee Disciplinary Action Form

Form III
1

Employee disciplinary action is a way to manage misconduct in the workplace and an attempt

to bring an employee back in line with organizational policy. Organizational policy consists of reasonable rules of conduct including attendance, performance, ethics, and many other policies.

http://hr.toolbox.com/wiki/index.php/Employee_disciplinary_action

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By Laws, Rules and Regulations

2

First and for most it is very important to have laws, rules and regulations to be followed for an

efficient ways to have a good relationship between the company, its leaders and employees. This will lead us to avoid unnecessary things and in order to achieve our main purpose. There are also laws pertaining to your workplace standards and job safety and Health standards. Also right to work, which means things in the company is run by its laws. One example of safety measures for employees is the law about sexual harassment. This is very important to be at ease at work. About ages, they prohibit age discrimination like for example youre in the mid-fortys but less than sixty years. It is very much welcome to still is at work. While Child labor is another thing, because age doesnt matter especially if he has the ability to do so. Next is the Civil Rights Act of 1964 which prohibits color, religion, sex and natural origin of its people. We also have overtime law like most of the company does have. Employees did much work than what is expected so they deserve to be paid accordingly. Another good thing is the Paid Sick Leave, its not our will to have sick right so we excuse this as an emergency and youre right to be paid.

http://jobsearchtech.about.com/od/labor_laws_2/Federal_Labor_and_Employment_Laws.htm

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Product Development and Research Executive Summary Pop cakes developed by the United States and other countries. It is very well-known due to the fact that many of us love to eat sweets. It is good in meals like breakfast. Pop cakes developed good standards in making it tastier and healthier as well. Compared to others, our product can be delivered much easier because of good quality service of delivery calls. Well assure you that on the way of delivering Pop cakes to your house, theyll still presentable and attracting. Aside from that, pop cakes will be more personalized in each designs depends on the theme you want to have. Youll surely have lots of options and youll surely try all themes and flavors made. More flavors are added to it so that youll surely choose your favorite ones. In a healthy way, it has 97 % fat-free and tastes delicious. It will surely be in with teenagers because you can have this in every occasion who wish to. Compared to others itll be bought for a cheaper prize. The 2 million will be used to begin the production, capital and etc. An additional 250, 000 is being provided by the owner.

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Recommendation: The proponents recommend Popcakes for people/toddlers who are looking for sweets, and desserts which have good taste with an awesome design/ theme depending on what occasion you are to celebrate. It has a remarkable taste that youll surely forget your name. Your budget in different needs will be just okay because our product costs more cheaply than others.

Conclusion: Based on our objectives with Popcake the proponents have a better outlook on their mission. And that is to establish a corporation that will create cake pops with quality in the most reasonable price.

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Figure 1. Timeline of events October Sept.

TASKS Idea Generation Planning of the business Knowing the target market and finding a location Survey Canvas of the materials needed Finding a location Finalizing business Registration of the business Start of implementation

August

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CHAPTER III MARKET ANALYSIS

Description of the Industry The food industry is a complex, global collective of diverse business that together supply much of the food energy consumed by the world population. Only subsistence farmers, those who survive on what they grow, can be considered outside of the scope of the modern food industry. The food industry has been there long before other industries came along and will be there long before others vanish, since food is one of the primary or basic needs of humans. Out of most of the businesses involved in the food industry only few businesses ever closes down. With these in mind, the proponents thought that putting-up a Popcake business will have more chance at success than any. Targeted Markets The proponents thought that their product should be open to all ages, but will focus more on toddlers, teenagers, and adolescents since it is in that age range that people mostly have what is commonly called sweet tooth. Since Popcakes is a cake covered with chocolate it will be more appealing to the market the proponents chose to focus on. Marketing Research

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Competition
3

The strength of product market competition plays an important role in economic

growth and affects economic efficiency, the allocation of resources, and can also lead to improved labor market performance. The Economics Department is examining product market competition and economic performance in order to identify product market policies that are conducive to growth and employment. Starting a small company like this has also its disadvantages for example; since were new people might get suspicious on their first try because Starbucks is already known for selling pop cakes, the location and the type of people surrounding it.

Barriers to entry The proponents think the problems they will encountering are as follows: Capital- the amount of money the proponents need to start the business Price- how much will the proponents sell the said product Location- finding the right places where it is to be advertised and I best to sell. Finding the right mixture and flavor- the proponents are looking for the right mixture and flavor satisfy the needs of aspiring consumers Being new on the market- the proponents think that it will be difficult for the business and the product to be trusted since there are a lot of signatures branded bake shops, pastry shops and the like already in the business for some time. Appearance- the proponents are looking for a way to make the product more appealing to the market.
3

http://www.oecd.org/department/0,3355,en_2649_34833_1_1_1_1_1,00.html

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CHAPTER IV MANAGEMENT TEAM Background/Primary Responsibilities of the Management Team Poke is a small private company that has people who manage and contribute their skills in the corporation. Thats what the management team composes of. The strengths of our management team composes of Perseverance, Patience, Creativity, Camaraderie and Curiosity is what we posses and what we think we need give an optimistic view for our possible investors and loaners in the business.

Pokes management team is composed of three main groups, respectively: the Human Resources Committee, the Service Committee, and the Sales Committee. The managers of each of these committees compose of the management team of the corporation. They are responsible in terms of making managerial decisions, creating a harmonious work area, In charge of setting the companys vision, and commanding policies and procedures to be assured that the company run on how it is suppose to be.

The Human Resources Committee is basically responsible for administrative tasks. That includes directing benefits of the employees, recruiting and interviewing new hires. They are accountable for tasks like financing, controlling and in consulting top executives about the strategic plans for the corporation.

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The Service Committee is the one who interacts with the customers that provides them with the information they need. They are obliged in helping resolve any costumer complains. Lastly, they are the ones who are responsible in investigating, choosing, and developing their products and services.

The Sales Committee is responsible for keeping track of the everyday operations of the sales team in helping them maintain the companys tactical goal. They are the ones responsible for creating and maintaining good relationships of a customer and employee. Lastly, their accountable for preserving and developing return sales.

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Organizational Structure

Board of Directors

Advisory Board

Managing Board

Human Resources Committee

Service Committee

Sales Committee

Human Resources

Customer Service

Forecasting

Finance/Controlling

Product Development

Marketing

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Board of Directors/Advisors
(1) 4

The board is made up of individual men and women (the "directors") who are elected

by the shareholders for multiple-year terms.Poke is a small private company in which the directors and the stockholders are pretty much the same people. Their duty is to do what is for the good of their entire company. The directors decisions arent limited only to themselves but also to the rest of the companys opinions.

If Poke has a board of directors, it also has advisors in order to help the corporation to stay on track. The advisory board will be composed of different people that are in the field of financing, marketing and managing. This board will meet five times a year, depending on the schedule of the corporation. If either one of the group my not attend to a specific meeting they will have to adjust their schedule or just get updated on the happenings of that specific meeting. They have the final say on what programs are needed to be done, how much it will cost, and what other projects theyll be involved in. These thins will be discussed and voted on during meetings.

http://beginnersinvest.about.com/cs/a/aa2203a.htm

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Aside from the upper part of the chart, each committee has responsibility on their own field. Once a month the 3 committees will meet together with the managing board to discuss, evaluate and relay to each other the final say of the board members regarding with the activities for the company. All of these things will be discussed and voted during those meetings.

Ownership The ownership, power and control of the corporation is divided equally into three parts: The board of directors, the managing board, and lastly, the stock holders in general meetings. The stockholders of the corporation have the right to nominate and elect the board of directors. The newly elected board members are obliged to appoint a managing board that can manage the affairs of the corporation.

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CHAPTER V OPERATIONS Operations To be able to start operating the business the proponents need to know what might be the estimated cost/amount needed, the place where the operation will take place and the personnel assignment on the different departments there is. All of this will, if executed properly, will help the business have good service and product.

Marketing Strategy One of the Marketing strategies of our business is to know, study, and learn about our targeted market/s and to set up our business in an advertised place. Our main objective is to be globally competitive as our competitors, In order to meet our customers expectations the proponents thought of various strategies to attract and maintain them as our targeted market. Our Corporation has planned three different marketing strategies: Free Tasting/Freebies The proponents plan on giving one whole day of free tasting that would help our business become trusted and advertised. Flyers, commercials, and posters- The proponents will use simple posters and hand-outs distributed by agents to advertise of our presence and then move on to small-time sponsorships, radio broadcasts and online advertisements. They will show off a brief description of our enterprise, telling about the name of the busness, its location and the sort of products it is open to serve. We also aim to

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promote our business by leaving a good impression on our first-time customers, who then tell others about our performance and in turn, bringing in more than the last batch. Use of social networking sites The use of social networking sites is to communicate with other people with an easy access that is why the proponents decided to put this as one of their marketing strategies so that people over the nation of the city may search about POPCAKE through the use of different social networking site such as Face book, twitter, and an official website.

Production Plan Seeing the short shellfire most of our goods possess, it is ideal that we take on a weekly schedule of restocking and baking on the weekend. Production will begin on the first weekend, producing a variable batch of goods that is estimated to cover the sales for the current week (up to two weeks if possible). Then begin servicing for the next five days as on the next weekend, whilst performing sales, our supply of goods will be refreshed and continue operations for another week. After most of our ready-to-serve stock is depleted, the upcoming weekend will be spent on baking the next batch of commodities and so forth. Personnel Everything starts out small. As such we will attempt to conserve funding by hiring a number staff, around a few bakers and some maintenance personnel. This can be compensated with a small, yet adequately spaced workplace. The petite nature of our outlets will ensure the required size of our workforce will be small. But eventually as our profits grow, so will our business and as our stores increase in size, so will the amount of staff which is requred to operate the workplace.

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Section

Salary Per Week 250 190 180 200 160 980 Per Month 7,500 5700 5400 6000 4800 48000 Per Year 72000 57,000 54,000 60,000 48,000 291000

Gen. Management Human Resources Sales Committee Service Committee Utility Total

*Note: Salary/Payment can be changed depending on the circumstances. The proponents equally divided the salary of its employees. It has a total of 291,000.

Shift/ Schedule Morning Evening 5 2 5 5 5 3 5 2 5 5 5 3 Overtime 2 2 0 1 1 N/A

Gen. Management Human Resources Sales Committee Service Committee Utility Total absences

Workers are expected to work for Ten hours (5 hours since shift and later to this will be added to the salary as overtime.

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Schedule of Sales Small Production = 50 pieces Medium Production = 100 pieces Large Production= Month January February March April May June July August September October November December 150 pieces Kind of Production M L M M L M M S S L M L

The proponents plan to increase production at the months February and December since these are the months that sweets are most likely to be in demand.

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Approximated timing and Allocation Procedure:

Steps

Mixing/preparing of batter Baking Preparing cake ball mix Turning cake into balls Chilling Coating Adding toppings Packaging Quality Control Estimated Time 30 mins Ihr/ 30 mins. 15 mins 20 mins. 15 min. 20 30 min. 15 min. 10-30 min. 10-30min. Approximated Employee 2-3 2-3 2-3 2-3 2-3 2-3 1-2 3-5 5-6

Mixing/preparing of batter Baking Preparing cake ball mix Turning cake into balls Chilling Coating Adding toppings Packaging Quality Control

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Employee Plan The proponents plan to hire 5 employees to help them handle the business. This 5 includes the cashiers, accountants and other staff that the business will need. The people who will pass the required qualifications will undergo an interview. The proponents are still deciding on the qualifications as well as the questions to be used/asked during the interview.

CUSTOMER SUPPORT

By providing excellent customer service is one way POPCAKE can be differentiated against its competition. Good customer service is all about bringing customers back to avail your services. For more accurate communication with customers, the following are customer support options:

Online Website: This allows the customers and employees to access information and performs routine tasks over the Internet, without requiring any interaction with a representative of the company. It benefits the company by its lower cost and requires less time. Survey: Comments and suggestions of the customer will enable the team to see how POPCAKE does overall and find out how they can improve the cake pops. The Attendant will give out a evaluation sheet to the customer and fill it out before they leave, on which they would rate the quality of each of the business' aspects like

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Cleanliness, order, food quality and so on. Take-out customers will have contact details on the delivery package, so they can leave comments criticizing our performance to them.

FUTURE RESEARCH AND DEVELOPMENT PLANS The Future Research and Development Plan of POPCAKE is to provide a clear framework of challenging targets for the consumer over the next years. The proponents plan to experiment on different flavors to give the customers more choices in buying the product. The team is planning to expand the business venture by establishing other branches and be open for franchising.