1

A FEASIBILITY STUDY
Presented to the College of Management and Accountancy
PHINMA Araullo University

___________________

In Partial Fulfillment of the Requirements for the Degree

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION-
MARKETING MANAGEMENT

___________________

By

Queenie May Alfonso

Angelica Antonio
Royse May Liwag
Lexter Rodriguez
Shiena Lou Sindanum
Asnia Sultan
Charles Earl Tabije
Henessey Tabilon
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CHAPTER I

INTRODUCTION AND BACKGROUND OF THE STUDY

Introduction

Many countries around the world claim the empanada as one of

their own. Empanadas are in Spain, Portugal, Caribbean, Latin

America, and in Philippines and empanada is very essentially

stuffed pastry. From morning, most of us frequently buy breads

from a vendor who used bike or other vehicles to sell their

products across different streets or we usually buy breads to

our valid home based bakeries, bread can also be at snack time

it can be partnered with hot Choco, fruit juices or other

beverages. Empanadas are complete little meals unto themselves;

everything you need is meat, vegetable, cheese, sauce -that is

neatly wrapped into a tasty crust, ready to travel. Like all

great street food, empanadas can be eaten on the go with little

fuss or mess. They taste good at room temperature, but they heat

up quickly in the microwave or toaster oven, making them ideal

for breakfast on the go. Their flaky crust soaks up the flavor

of the filling and enhances it, whether it's vegetable, chicken,

beef or seafood.

The name comes from the Spanish verb empanar, meaning to

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wrap or coat in bread. Usually the empanada is made by folding a

thin circular-shaped dough patty over the stuffing, creating its

typical semicircular shape. Empanadas are also known by a wide

variety of regional names. It is likely that the Latin American

empanadas were originally from Galicia, Spain, where an empanada

is prepared similar to a pie that is cut in pieces, making it a

portable and hearty meal for working people. The empanada is

usually prepared with cod fish or chicken.

This feasibility will provide satisfaction to the students

and employees of PHINMA - Araullo University by making different

variety flavors of empanada. The researchers will aim to know

what variety of flavors does the individual wants by conducting

evaluation and strategies.

Review of Related Literature

Foreign Related Literature

Pierre Polaine Bakery, 1932

Established by Pierre Poilane of Pierre Poilane bakery in

1932, this bakery has stood the test of time. Son Lionel

continues to bake bread in the original wood-fired oven.

Sourdough bread baked from stone-ground flour is especially

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here, as are exquisite butter cookies. The unique online

ordering system offers potential original gifts, or the chance

to keep up your bread habit of your trip to Paris is temporary.

Winner of the 2010 prize for best baguette in Paris, this

prestigious bakery located in the heart of Montmartre is run by

Michael Galloyer, a member of France’s “AcademieCuliniaire”.

Reference:http//www.newyorker.com/magazine/2012/12/03/breadwinner

Local Related Literature

Building a household name: The success story of Julie's Bakeshop

An ordinary housewife making ends meet by selling bread did

not expect she could build a corporation and then some. “I asked

God for only one,” says Julia Gandionco, her grateful way of

saying she was given much more. Indeed, the community bakeshop

turned bakery chain that is Julie’s Bakeshop is not just a

simple family venture but a household name. A bakery chain that

traces its roots from a small town in Mandaue City in Cebu,

Julie’s Bakeshop grew from a small store that supplied bread to

canteens to become the country’s largest network of bakeshops

with a total of more than 500 branches to date.

Joseph Gandionco, president and CEO of Julie’s Franchise Corp.,

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saw how the family’s humble bakery came to be what it is now.

“From Day 1, I was there helping [my mother Julia]. I was the

one available at that time. The older ones were all working, the

younger ones were studying. I just graduated then,” he says.

This was in the 1970s, and Julia was managing three canteens

that needed a steady supply of bread.

With nothing to do just yet, young Joseph helped out by

picking up bread from various bakeshops. During one of those

deliveries, a baker suggested they put up their own bakeshop

since they needed so much bread every day. Without any bakery

experience, Julia took up the idea.

Source: http://pinoyandpeso.blogspot.com/2012/01/julies-

bakeshop-success-story.html

 Capital

 Location

 Preparation time and operating hours

 Staff

 Product shelf life

 Sanitation and safety

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Conceptual Framework

The researchers use the IPO Model in formulating the

framework of the study that will serve as a guide for the

researchers in doing the entire study.

INPUT PROCESS OUTPUT

 Demographic
profile of the
respondents:
 Name
 Course A FEASIBILITY OF
Survey
 Gender Questionnaire and
ESTABLISHING
 Age Data analysis “EMPANADA
 Marketing MANIA” IN
Aspect PHINMA-
 Technical ARAULLO
Aspect UNIVERSITY
 Management
Aspect
 Financial
Aspect

Figure 1 Paradigm of the Study

Figure 1, Paradigm of the study shows the way how the

research will be conducted.

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Statement of the Problem

1.) How the feasibility of the Marketing Aspect of this study

be described in terms of:

 Market Description

 Demand Analysis

 Supply Analysis

 Demand and Supply Analysis

 Competitive Position

 Marketing Program

 Projected Sales

2.) How the feasibility of the Technical Aspect of this study

be described in terms of:

 Product Description

 Manufacturing/Production Process

 Plant Size and Production Schedule

 Machinery

 Plant Location

 Plant Layout

 Building and other facilities

 Raw materials and supplies

 Utilities/Facilities
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 Waste Disposal

3.) How the feasibility of the Management Aspect of this

study be described in terms of:

 Form of business organization

 Capitalization

 Organizational structure

 Personnel and manpower requirements

 Duties and responsibilities of personnel

 Qualification standards of personnel

 Legal requirement

 Company policies

4.) How the feasibility of the Financial Aspect of this study

be described in terms of:

 Total project cost/Capital requirement,

 Sources of funds,

 Terms and conditions of creditors,

 Projected financial statements,

 Schedules,

 Financial analysis?

5.) How the Project Implementation and time table of the

project be described?
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Significance of the Study

This research will be studied to know if it is effective to

construct the “EMPANADA MANIA” in PHINMA- Araullo University.

The result of the study will greatly benefit the following:

Students - The result of the study will be a great help for the

students in order for them to gain knowledge about how to put

this kind of business and to give them satisfaction from the

product.

The Researchers- This study may contribute formerly unknown

information to the researchers, thus, increasing their

knowledge.

Future Researchers- this study will help the future researchers

for the reason that they may use this as their guide in their

future researches.

Scope and Limitation

The researchers will conduct this study within the campus

of PHINMA-Araullo, Brgy. Bitas, Cabanatuan City and the students

are the respondents of the study. This study focused in

gathering data through conducting survey questionnaires and

personal interviews and will be conducted during the first

semester of school year 2016-2017.

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Chapter II
Market Study

Market Description

PHINMA - Araullo University is one of the most leading

universities in Nueva Ecija by continuously giving affordable

and high quality education with the belief of “Making Lives

Better”. Through the years, PHINMA Araullo University acquire a

large number of enrollees every year. The growing population of

PHINMA Araullo University indicates the increase in demand for

food/snacks inside the university.

The proposed business the “Empanada Mania” is related in

providing snacks particularly breads inside PHINMA Araullo

University with the continuously growing population of students

and by providing them an affordable and healthy snacks for the

students and employees of the university.

Research Design

The researchers used a descriptive method of research

because it is the most appropriate and convenient method to use.

Descriptive research is a fact-finding approach with adequate

and accurate presentation, analysis and interpretation of the

data gathered from the respondents. Descriptive research, also

known as the statistical research, describes data and

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characteristics about the population or phenomenon being

studied. Descriptive research answer the question who, what,

where, when and how.

Materials and Instrument

The researchers used questionnaire in collecting data from

the respondents of PHINMA Araullo University.

A questionnaire is a research instrument consisting of a

series of questions and other prompts for the purpose of

gathering information from the respondents (Tan, 2010).

The purpose of using a questionnaire in the study is that

it is practical; it can collect information from a small or

large number of people in a short period of time and in a

relatively cost effective way; and it can be analyzed more

scientifically and objectively than other forms of survey.

The formulated questionnaire was preceded by a cover letter

that introduces the researcher, explains the purpose of the

research and it solicits assistance in providing the required

information. After the cover letter follows the two-part

questionnaire; the profile of the respondents that enclosed the

individual’s information makes up the first part of the

questionnaire. The second part of the questionnaire encompasses

the questions pertaining on establishing a kiosk of Empanada

Mania.
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To whom it may concern,

The researchers respectfully request your kind permission
to answer the questionnaire in relation to our Business Planning
and Research subject in studying the Project Feasibility Study
on Establishing “Empanada Mania in PHINMA Araullo University”.
Your cooperation will surely be appreciated. Thank you for your
kind consideration.
Respectfully yours,
Researchers

Survey Questionnaire

Name (Optional): _____________________________

Course/Department:___________________

Age: _______ Gender: Male Female

Instruction: Shade/Check the box for the choice of your answer.

1. Do you eat empanada?

Yes b No

If No, do not proceed to the next questions.

2. How often do you eat empanada?

Everyday Once a week

Twice a week Once a month

3. What variety of empanada do you prefer to eat?

strawberry

sisig

ube

tuna
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4. How much are you willing to pay for an empanada?

12php 22php

20php 30php

5. If we establish a kiosk of empanada Mania inside PHINMA

Araullo University will you patronize it?

YES NO

COMMENTS AND SUGGESTIONS

From the choices and questions above, do you have any
comments and suggestions? If any, please write on the space
provided.
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SURVEY QUESTIONNAIRE

DEMOGRAPHIC PROFILE

GENDER

TABLE 1

NO. OF RESPONDENTS PERCENTAGE

MALE 11 22%

FEMALE 39 78%

TOTAL 50 100%

AGE

TABLE 2

NO. OF RESPONDENTS PERCENTAGE

15-20 YEARS OLD 47 94%

21-30 YEARS OLD 3 6%

30 AND ABOVE 0 0%

TOTAL 50 100%
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TALLY SHEETS

1. Do you eat empanada?

TABLE 3

NO. OF RESPONDENTS PERCENTAGE

YES 50 100%

NO 0 0

TOTAL 50 100%

2. How often do you eat empanada?

TABLE 4

NO. OF RESPONDENTS PERCENTAGE

EVERYDAY 0 0%

ONCE A WEEK 4 8%

TWICE A WEEK 10 20%

ONCE A MONTH 36 72%

TOTAL 50 100%
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3. What variety of empanada do you prefer to eat?

TABLE 5

NO. OF RESPONDENTS PERCENTAGE

STRAWBERRY 8 12.30

SISIG 18 27.69

UBE 15 23.08

TUNA 24 36.92

TOTAL 65 100%

4. How much are you willing to pay for an empanada?

TABLE 6

NO. OF RESPONDENTS PERCENTAGE

12php 26 52%

20php 20 40%

22php 3 6%

30php 1 2%

TOTAL 50 100%
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5. If we establish a kiosk of empanada Mania inside PHINMA

Araullo University will you patronize it?

TABLE 7

NO. OF RESPONDENTS PERCENTAGE

YES 49 98%

NO 1 2%

TOTAL 50 100%

Comments and Suggestions:

 “I LOVE EMPANADA”

 “ALSO ADD GINILING FLAVORED EMPANADA FOR MORE VARIATION”

 “IN THE QUESTION 4 WE OR US WOULD LIKE TO BUY A CHEAPEST

FOOD. AND I WILL BUY YOURS.”

 WHAT IS EMPANADA?

 “FOR ME YOUR PRODUCT IS NOT EMPANADA ITS EMPANADITA”

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Demand Analysis

Demand analysis is a marketing study used to determine what type

of customers are willing to buy a particular product and how

many units they are likely to buy and at what price range. This

information is then used to plan advertising strategies,

determine selling cost and make product modifications.

Historical Population of PHINMA Araullo University for the

Past Five Years

TABLE 8

Average No. Average No.

YEARS TOTAL POPULATION
of Students of Employees

2011-2012 5,314 176 5,490

2012-2013 5,505 185 5,690
2013-2014 6,027 180 6,207
2014-2015 6,952 189 7,141
2015-2016 7,639 263 7,902

The table above shows the historical number of students and

employees of PHINMA Araullo University for the past five (5)

years. It indicates from the year 2012 – 2016 and this will used

to determine the population growth rate of the university.

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Growth Rate of Annual Population of PHINMA Araullo University

TABLE 9

YEAR POPULATION GROWTH RATE

2011-2012 5,490 0

2012-2013 5,690 3.64%

2013-2014 6,207 9.09%

2014-2015 7,141 15.05%

2015-2016 7,902 10.66%

TOTAL GROWTH RATE 38.43%

AVERAGE GROWTH RATE 9.6%

The table shows the growth rate, the total growth rate and the

average growth rate of the historical number of population of

PHINMA Araullo University for the year 2012-2016. By using this

table, the researchers projected the number of population for

the next five year.

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Projected Population of PHINMA Araullo University for the next

five years (2016-2021)

TABLE 10

YEAR POPULATION

2015-2016 7,902

2016-2017 8,661
2017-2018 9,492
2018-2019 10,403
2019-2020 11,402
2020-2021 12,497

The table shows the projected number of population of PHINMA

Araullo University for the next five years. The researchers used

the formula, the projected demand for the year 2016 by

multiplying the number of population for the year 2015 by the

average growth rate of 1 + 9.6%. And the formula applies for the

next five years (2016-2021). A positive growth rate indicates an

increasing number of populations annually.

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EFFECTIVE DEMAND

TABLE 11

Year Projected Question no. 1 Potential

Number of Demand
Population

100%

2016-2017 8,661 8,661 8,661

2017-2018 9,492 9,492 9,492

2018-2019 10,403 10,403 10,403

2019-2020 11,402 11,402 11,402

2020-2021 12,497 12,497 12,497

Question no. 1 –Do you eat bread?

100% answered YES.

Table shows the market demand and the percentage of

Question no.1. Using the table, the researchers got the

projected demand of “Empanada Mania” for the next five years.

Effective Demand

= Projected Population X Question no. 1

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Projected Demand for the next five years (2016-2020)

2016-2017

TABLE 12

EFFECTIVE % OF POTENTIAL FREQUENCY EFFECTIVE

DEMAND RESPONDENTS DEMAND DEMAND PER
CHOICES
8661 0% 0 Every day 0
(200 days)
8661 8% 692.88 Once a week 27715.2
(40 weeks)
8661 20% 1732.2 Twice a 138576
week (80
days)
8661 72% 6235.92 Once a 62359.2
month (10
months)
TOTAL 100% 8661 228650.4

2017-2018

TABLE 13

EFFECTIVE % OF POTENTIAL FREQUENCY EFFECTIVE

DEMAND RESPONDENTS DEMAND DEMAND PER
CHOICES
9,492 0% 0 Every day 0
(200 days)
9,492 8% 759.36 Once a week 151872
(40 weeks)
9,492 20% 1899.2 Twice a 151936
week (80
days)
9,492 72% 6,834.24 Once a 68342.4
month (10
months)
TOTAL 100% 9,492 372150.4
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2018-2019

TABLE 14

EFFECTIVE % OF POTENTIAL FREQUENCY EFFECTIVE

DEMAND RESPONDENTS DEMAND DEMAND PER
CHOICES
10,403 0% 0 Every day 0
(200 days)
10,403 8% 832.24 Once a week 33289.6
(40 weeks)
10,403 20% 2080.6 Twice a 166448
week (80
days)
10,403 72% 7490.16 Once a 74901.6
month (10
months)
TOTAL 100% 10,403 274639.2

2019-2020

TABLE 15

EFFECTIVE % OF POTENTIAL FREQUENCY EFFECTIVE

DEMAND RESPONDENTS DEMAND DEMAND PER
CHOICES
11,402 0% 0 Every day 0
(200 days)
11,402 8% 912.16 Once a week 36486.4
(40 weeks)
11,402 20% 2280.4 Twice a 182432
week (80
days)
11,402 72% 8209.44 Once a 82094.4
month (10
months)
TOTAL 100% 11,402 301012.8
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2020-2021

TABLE 16

EFFECTIVE % OF POTENTIAL FREQUENCY EFFECTIVE

DEMAND RESPONDENTS DEMAND DEMAND PER
CHOICES
12,497 0% 0 Every day 0
(200 days)
12,497 8% 999.76 Once a week 39990.4
(40 weeks)
12,497 20% 2499.4 Twice a 199952
week (80
days)
12,497 72% 8997.84 Once a 89970
month (10
months)
TOTAL 100% 12,497 329912.4

The tables show the total demand for the next five years in

frequency, by multiplying the percentage of respondents who

answered every day, once a week, twice a week, and once a month

to the projected market demand for the year 2016, 2017, 2018,

2019 and 2020. By using this table, the researchers got the

Demand and Supply Gap.

Competitive Advantage

The proposed project had a great opportunity to have a

competitive advantage on the market and be position on the mind

of its target market because, at the first place it offers

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affordable, high quality and healthy products that consumers

consider.

SWOT ANALYSIS

FIGURE 2

STRENGTH WEAKNESS

 Affordable price
 Limited capitalization
 Has different variety of

flavors

 No competitors

 Easy to prepare

OPPORTUNITIES THREATS

 Student’s craving for new  Number of Market

taste Participants

 No entrants of competitors

 Referrals from students

regarding the product

 Growing population of

students inside the

University
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STRENGTHS

Affordable prices- affordable price attracts customer and that

is one of the main reasons why we chose to have an affordable

price but never sacrificing the quality of the products.

Different variety of flavors- students want to experience new

products and they always want to try everything, we offer

different variety of flavors for them to have an options and to

offer something new that will truly satisfy to their hunger.

Easy to prepare- empanada is easy to prepare, and when it’s easy

to prepare we could serve the product for customer as quick as

we can.

WEAKNESSES

Limited capitalization-The business will have a limited capital

to expand the business into other places.

OPPORTUNITIES

Individual’s Favorite- people are curious especially the

students, it will serve as an opportunity to attract them to buy

our different flavors of empanada.

No entrants of competitors- This might be a good opportunity to

grab if you have no competitors in the market, you will have an

opportunity to dominate the market and make profit.

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Annual Increasing population of students- because of its growing

population, it is an opportunity to have a large amount numbers

of customers.

THREAT

Number of Market Participants- A numerous number of market

participants that offers direct and substitute product indicates

a stiff competition and result to the customer to have a low

level in switching cost that result to easy change of mind.

Distribution Channels

Distribution Channel of

“Empanada Mania”

The above figure shows the Channel Distribution of Empanada

Mania. The proposed business had its own supplier that serves as

the source of ingredients that is needed to produce the product.

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Since Empanada is a common product in the market, the

proposed business chose this kind of channel distribution which

is to sell the product direct to its customer.

Marketing Programs

A marketing program is a coordinated, thoughtfully designed

set of activities that helps achieve the marketing

objectives. Marketing objectives are strategic sales goals that

fit the strengths and are a good way to stretch your business in

its current situation. In order to build strong customer

relationships and maximize the sales, it will need to put every

possible marketing tool that will work.

A. Product

The researcher will offer an Empanada with different

variety of delicious flavors that will lead into satisfaction

for the students of PHINMA Araullo University.

EMPANDA MANIA

EMPANADA SISIG

EMPANADA UBE

TUNA EMPANADA

STRAWBERRY EMPANADA

TABLE 17
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B. PRICES

The researchers will offer empanada products with

affordable price with satisfying feeling to every students of

PHINMA Araullo University.

EMPANDA MANIA PROJECTED

PRICES

EMPANADA SISIG P 12 PER PIECE

EMPANADA UBE P 12 PER PIECE

STRAWBERRY EMPANADA P 15 PER PIECE

TUNA EMPANADA P 15 PER PIECE

TABLE 18

C. Place

The researchers chose to locate the business in Cabanatuan

City. The exact location is inside PHINMA Araullo University,

main campus, located in Brgy. Bitas, Maharlika Highway,

Cabanatuan City.
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D. Promotion

The researchers of the proposed project used different

marketing strategy in order to introduced The Empanada Mania to

get the attention of the prospective customer.

These are some promotion strategies:

A. Banner

B. SOCIAL MEDIA
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Chapter III

Technical Aspect

In this aspect, the objective is to determine to what extent the

proposed business meets the technical feasibility, which

includes the supply of raw materials to be used, the list of

equipment and tools required for the preparation of the

product, the labor needed and other requirements that are

necessary to operate the business.

Product Design

The business provides a line of homemade empanada products. We

all know that Filipino loves different flavors, so Empanada

Mania will offer five flavors of empanada; sisig empanada, tuna,

shrimp and ube empanada and caramel de apple empanada that will

surely catch the taste buds of every customer.

Empanada DESCRIPTION

Sisig

An empanada filled with

delicious pork sisig.

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Ube

An empanada filled with

Filipinos old time’s favorite

sweetened ubehalaya.

Tuna

An empanada filled with

deliciously Filipino’s favorite

typical tuna.

STRAWBERRY

An empanada filled with tasty

flavor of strawberry.

TABLE 19
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Packaging

The picture above shows the sample package for the proposed

product.

Manufacturing and Procedure

TABLE 20

BREAD DOUGH

4.2 kg 1st Class Flour 1/2 kg Brown Sugar 1/2 tbsp. Salt

1/4 kg Shortening 2 L Water 3 tbsp. Instant Dried

Yeast

2 tbsp. Bread Improver 2 tbsp. Anti-Mold

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Procedure:

Step 1: Prepare all the ingredients and materials needed

Step 2: Put together all the dry ingredients on the mixing bowl: the

flour, brown sugar, salt, instant dried yeast, shortening, bread improver

and anti- mold then mixed

Step 3: Add the water and the margarine then stir it until it becomes

soft solid dough

Step 4: Then cut for the desired sizes and set aside

Machinery and Equipment

TABLE 21

Utensils Function Supplier Quantity Unit Total

Cost Cost

Wooden Spoon It is used

set for
mixing,
serving Novo 1 ₱150 ₱150
and Ecijano
preparing
foods.

Tong It is used
for
holding,
cooking Novo 2 ₱30 ₱60
and Ecijano
serving
foods.
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Hand Whisk This tool

helps to
easily
beat the Novo 1 ₱100 ₱100
ingredient Ecijano
s, like
eggs.

Oven
Used to
bake the Abenson 1 2500 2500
empanada

Table Used for

preparing Hongkong 1 2000 2000
the breads Bazaar

Total: 4,810

SANITARY NEEDS

TABLE 22

Sanitary Function Supplier Quantity Unit Total

Cost Cost
Pot Holder A piece of
textile
used to
hold hot
kitchen Robinson’s 5pcs./pack ₱95 ₱95
equipment Department
like pots
and pans.

Cleaning Towel Used to

dry hands
 36

and for
sanitation
purposes. Robinson’s 15pcs./pac ₱34 ₱34
Department k

Dishwashing Used to
Liquid (250ml) wash
plates and
utensils
and other Robinson’s 2 ₱69 ₱138
materials. Supermarke
t

Sponge and Used to

Scrub clean
plates and
other
utensils. Robinson’s 2 ₱37 ₱74
Supermarke
t

Disposable Used for

Gloves handling
product to
avoid
contaminat Robinson’s
ion. Department 3 ₱25 ₱75

Trash Bin Used for

garbage
disposal.
Robinson’s 2 ₱120 ₱240
Department
 37

Broom Used to
sweep the
floor.

Robinson’s 1 ₱211 ₱211

Supermarke
t

Dustpan Used to
collect
dust and
waste. Robinson’s 1 ₱80 ₱80
Department

Apron It is a
protective
garment
used to Robinson’s 2 ₱70 ₱140
protect Department
clothes
from
stains
during
food
preparatio
n
It is used
Hairnet to prevent
hair
falling on Robinson’s
food Department 3 ₱35 ₱105
product.

TOTAL: 1,192
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SUPPLY

TABLE 23

Supplies Function Supplier Quantity Unit Total

Cost Cost
Ball pen Used in
writing
important
details or Ang Tiaga 2 ₱3 ₱6
documents.

Calculator Used for

computation.

Ang Tiaga 1 ₱159 ₱159

Log Book Used for

recording
and
reference Ang Tiaga 2 ₱40 ₱80
purposes.

Scotch tape It is used

to tighten
the
packaging of Ang Tiaga 1 ₱6 ₱6
the breads.

Scissor It is used
for cutting
purposes.

Ang Tiaga 2 ₱20 ₱40

 39

Paper Bag It is used

to hold the
bread and
serve it.
Ang Tiaga 100 ₱25 ₱25
pcs./pack

Tissue For sanitary

purposes.
Robinson’s
Supermarke
t 100pcs./p ₱50 ₱50
ack

TOTAL: 366.00

Raw Materials and Supply

TABLE 24

Raw Materials Function Quantity Unit Total

Cost Cost

All Purpose It is the 5.2 kg 44/kg 228.8

Flour main
ingredients
in special
 40

breads like
crinkles and
ensaymada.

Brown Sugar It is used to 1.3 kg 42/kg 54.6

sweeten the
ordinary
breads and
dough
mixture.

Baking Powder A kind of 0.045 kg 90/kg 4.05

leavening
agent and
usually in
powder form
also it is
used in the
production of
cakes, quick
breads and
others.
Corn Oil It is used to 0.27 L 110/L 29.7
make dough,
more often
this
ingredient is
used to avoid
the
stickiness of
the dough to
the sheet
pan.
Egg Used in 66 pcs. 6/pc. 396
making
special
breads.
 41

Ube To be filled
in the dough 2kl 45/kl 90
as the flavor

Tuna To be filled
in the dough
as the flavor 3kls 50/kl 350

Sisig Made of
giniling to 200 200
be filled in
the dough as
the flavor

Shrimp To be filled in the

dough as the flavor 50pcs 7/pc 350

TOTAL: 1703.15
 42

Land and Location Layout

FIGURE 4.

PHINMA ARAULLO UNIVERSITY

Empanada Mania will be located at Administration Lobby of PHINMA

Araullo University.

Kiosk Layout

FIGURE 5
 43

Kiosk Dimension

FIGURE 6

Stall Materials for Kiosk

Materials Supplier Unit Quantity Total Cost

Cost
Plywood 3/4 Grand Capitol & 1,150 5 5,750
LC Construction /pc
Center

Nail (size 2 Grand Capitol & 50/kg 1 kg 50.00

½ ) LC Construction
Center
Nail (size 2 Grand Capitol & 50/kg 1 kg 50.00
) LC Construction
Center
Stil wel 1/2 Grand Capitol & 115/L 1/2 L 115.00
L LC Construction
Center
 44

Paint Pre- Grand Capitol & 62/L 2 124.00

Mix LC Construction
Center
Paint Ang Tiaga 26/10 10 260.00
(Umbrella ml
Design)
TOTAL: 6,349
KI

OSK LABOR

Labor for Kiosk

TOTAL: 4,500

Utilities

Monthly Annually

Electric Bill 1000 12000

Water Bill 500 6000

Rent 3500 42000

Total 5000 60000

The approximate costs incurred monthly are as follows:

Electricity: 1000

Water: 500

Rental: 3500
 45

Waste Disposal

The researchers wanted to give the customers a 100%

satisfaction in cleanliness in all areas of the store.

Empanada Mania will provide one trash bin inside the store

for temporary keeping of garbage. The accumulated garbage per

day will be collected by iClean maintenance personnel inside the

campus.
 46

CHAPTER IV

Management Aspect

The success of the business primarily lies on effective

management and organization. Organization refers to the

structuring and integrating of various activities of people

working together with independent relationship. On the other

hand, management is the planning, organizing and controlling

activities towards certain activities. The purpose of management

is to achieve certain specific goal to maintain or improve the

viability of an organization for an effective and efficient

means in achieving such objectives.

In this chapter, the researchers discuss the form of business

organization, organization structure, personnel and manpower

requirements, duties and responsibilities, qualification

standards of personnel, legal requirement, compensation package

and company policies.

Form of Business Organization

The simplest form of business is the sole proprietorship, a

business owned and operated by one person. An Empanada Mania is

 47

a business service oriented which is easy to set-up and a

minimal amount of capital needed to set a business like this.

Therefore, the ideal form of business organization for this is

Sole Proprietorship which is simpler compared to the other forms

of business organization. The Empanada Mania had a limited

staff/personnel, the business owner will not be having an

experience of hard time to managing and operating the business.

There are some necessary adjustments in terms of capital and

personnel/staff that will take place depending on the demand for

the business product.

Organizational Structure
 48

The business organizational structure that shall be composed of

the Manager (owner) of the proposed business and represents the

Baker, and staffs will fill the lower level management.

Manpower Requirements

DUTIES AND RESPONSIBILITIES

The duties and responsibilities of the personnel in the

organization are as follows:

PROPRIETOR/MANAGER

 Managers are responsible for merchandising baked goods and

quality control, which requires an eye for aesthetics.

 Should oversee baking staff to ensure the bakery's

standards are enforced.

 In charge of hiring, developing and terminating staff.

 Generally responsible for scheduling employees and ensuring

payroll stays within the bakery's budget.

 Overseeing inventory like ordering and rotating ingredients

such as flour, sugar, and butter; it involves receiving and
unloading deliveries.

 Tracking inventory including calculating the proper amount

of ingredients necessary for production of baked goods on a
given day or week.
 49

 Manager must keep an eye on demand for each kind of pastry

to know how much to supply.

 Manager will be sometimes required to add new items to the

list of the bakery's offerings.

 Responsible for ensuring the profitability of a bakery.

This means they must work within the confines of the
bakery's budget in order to maximize sales.

HEAD BAKER
 Prepare all of the prepared goods for sale at the bakery,
store or other specialty shop

 Preparing, baking and wrapping of the items so that they

are ready to go out the door

 To meet the day's production goals for baked goods

 Ensure that ingredients are ready for use each day

 Make sure that baking equipment is cleaned and maintained

properly

 Ensure compliance with food safety standards

SALES STAFF

 Greeting customers who will buy the products

 Involved in stock control and management

 50

 Assisting customers to find the goods and products they

are looking for

 Responsible for processing cash and card payments

 Answering queries from customers

 Reporting discrepancies and problems to the owner/manager

 Giving advice and guidance on product selection to

customers

 Keeping the store tidy and clean, this includes hovering

and mopping

 Responsible dealing with customer complaints

 Working within established guidelines, particularly with

cleanliness

 Attaching price tags to merchandise on the shop floor

 Responsible for security within the area

 Receiving and storing the delivery of large amounts of

stock

 Keeping the display well organized and clean

QUALIFICATIONS

OWNER/MANAGER
 51

 Good in planning, organizing, leading, and controlling and

should at least have a background in managing a business.

HEAD BAKER

 18 years old and above

 Male or female

 Must have working experience in the same field (bakery) for

at least 2 years.

 Must be responsible and hardworking and willingness in

working with a desire of personal career growth.

 Must have good moral character

STAFF

 Male or Female

 Must have knowledge in this kind of business

 At least High School graduate

 18 years old and above

 Have a good moral character

 Must have pleasing personality

COMPENSATION

BAKER

Per day php200.00

Monthly php5000.00
 52

Annually php 60,000.00

STAFF

Per day php 150.00

Monthly php 3,750.00

Annually php 45,000.00

Time Schedule

POSITION MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY

MANAGER 8:00AM 8:00AM 8:00AM 8:00AM 8:00AM

TO TO TO TO TO

12:00NN 12:00NN 12:00NN 12:00NN 12:00NN

1:00PM 1:00PM 1:00PM 1:00PM 1:00PM

TO TO TO TO TO

5:00PM 5:00PM 5:00PM 5:00PM 5:00PM

BAKER 4:30AM 4:30AM 4:30AM 4:30AM 4:30AM

TO TO TO TO TO

7:00AM 7:00AM 7:00AM 7:00AM 7:00AM

STAFF 8:00AM 8:00AM 8:00AM 8:00AM 8:00AM

TO TO TO TO TO

12:00NN 12:00NN 12:00NN 12:00NN 12:00NN

1:00PM 1:00PM 1:00PM 1:00PM 1:00PM

TO TO TO TO TO
 53

5:00PM 5:00PM 5:00PM 5:00PM 5:00PM

Capitalization

The proposed business will be financed by the business

administration student graduates.

Legal Requirements

The Empanada Mania complies with all the legal requirements

in establishing the business.

The project proponents have consulted a representative from

Business Permit and License of Cabanatuan City Municipal Hall

regarding legal matters. The representatives give a business

permit and license application that must be complied with other

requirements to accomplish legal existence of the business.

Certificate of Clearance/Compliance is accomplished through:

1. Registration for fire inspection for the safety of the

firm, and to check if it obeys the rules regarding this

matter.

2. Registration for building inspection for the over-all

design of the establishment

 54

3. Registration in Health and Sanitary Department to ensure

the health security and safety of employees and to check

that employee’s work is not hazardous.

4. Registration of the name of employees in Zoning Department

at City Planning and Development Office for the employee to

be registered on SSS for private employees and GSIS for

public employees to ensure their benefits.

The business registered the name of the firm at the

Department of Trade and Industry (DTI) as another legal

requirement.
 55

CHAPTER V

FINANCIAL ASPECT

Financing a business is one of the major reasons on how

investor creates its wealth. In this section, it involves an

analysis of the cash flow profile of the project. The Major

Assumptions used in making a projection to the financial

statements i.e. Projected Income Statement, Projected Cash Flow,

and Projected Balance Sheet with supporting schedules. The total

project cost, and also the analysis of financial statements in

terms of Liquidity, Solvency, Profitability and Break-even.

MAJOR ASSUMPTIONS USED

 The Projected timetable/schedule is set at 5 years.

 The Projected Sales is set to increase to 5% annually.

 The Cost of sale shall increase by five percent (5%)

annually.

 The Depreciation is computed based on a Straight Line

Method, its Salvage value is 10% of its cost.

 56

 The utilities are assumed based on the use of existing

bakery.

 Tax rates used is based on the prevailing tax rates set

by the Bureau of Internal Revenue.

 All sales/expenses are collected/paid in cash.

 Utilities expense like Water and Electricity are included

in the Rental Expense of the Company.

 The Owner will be allowed to withdraw 5,000 pesos a

month.

 The business will only be financed by the owner; no

assumed liabilities will be incurred.

Mania Empanada
Projected Income Statement
Coverage period of five years

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 648,000 680,400 714,420 750,141 787,648

Cost of sales 374,525 393,251 412,914 433,559 455,237
Gross profit 273,475 287,149 301,506 316,582 332,411

Salaries expense (baker 105,000 105,000 105,000 105,000 105,000

and staff)
Utilities 60,000 60,000 60,000 60,000 60,000
Depreciation expense 2,165 2,165 - - -
Legal requirements 4,616 - - - -
Other expenses 5,000 5,000 5,000 5,000 5,000
Total operating expense 176,781 172,165 170,000 170,000 170,000

Income before tax 96,695 114,984 131,506 146,582 162,411

Tax expense (30%) 29,008 34,495 39,452 43,975 48,723
 57

Net income after tax 67,686 80,489 92,054 102,607 113,688

Mania Empanada

Projected Balance Sheet

Coverage period of five years

Year 1 Year 2 Year 3 Year 4 Year 5

Cash in bank 17,967 1,998 13,458 23,900 34,865

Inventory 2,003 2,103 2,208 2,319 2,435

Prepayments and other 15,907 15,907 15,907 15,907 15,907

current assets

Machinery and equipment, 2,646 481 481 481 481

net

Total assets 38,522 20,489 32,054 42,607 53,688

Contributions, net of (29,164) (60,000) (60,000) (60,000) (60,000)

withdrawals

Accumulated income 67,686 80,489 92,054 102,607 113,688

Total liabilities and equity 38,522 20,489 32,054 42,607 53,688

 58

Mania Empanada
Projected Cash Flows
Coverage period of five years

Year 1 Year 2 Year 3 Year 4 Year 5

Contributions from researchers 30,836 - - - -

Collection from sales 648,000 680,400 714,420 750,141 787,648
Rent (42,000) (42,000) (42,000) (42,000) (42,000)
Security deposit (3,500) - - - -
Machinery and equipment (4,810) - - - -
Cost of sales (374,525) (393,251) (412,914) (433,559) (455,237)
Purchase of inventories (2,003) (2,103) (2,208) (2,319) (2,435)
Utilities (18,000) (18,000) (18,000) (18,000) (18,000)
Start-up costs (17,023) - - -
Salaries (105,000) (105,000) (105,000) (105,000) (105,000)
Other expenses (5,000) (5,000) (5,000) (5,000) (5,000)
Tax expense (29,008) (34,495) (39,452) (43,975) (48,723)
Owner withdrawals (60,000) (60,000) (60,000) (60,000) (60,000)
Projected cash at the end of the 17,967 20,550 29,846 40,288 51,253
year
 59

Costing for Legal Requirements

DTI P515.00

Mayors Permit (Business Permit) P2,365.00

Sanitary Permit Fee P200.00

Health Permit Fee P300.00

Barangay Clearance P30.00

Fire Safety Inspection P60.00

Zoning Fee P50.00

Sign board and bill board fee P60.00

Annual Inspection Fee and others P536.00

BIR P500.00

TOTAL P4,616.00
 60

Chapter 6

Implementation and Time Table

This chapter discussed the implementation or Ghant Chart of the

study. It includes the promotion and time activities that the

proposed business will do for the whole year.

IMPLEMENTATION J F M A M J J A S O N D

A E A P A U U U E C O E

N B R R Y N L G P T V C

I E Y T

CAPITALIZATION

LEGAL

REQUIREMENTS

ESTABLISHING/

MANUFACTURING

(KIOSK)

HIRING

EMPLOYEES

START OF

BUSINESS
 61

Chapter 7

CONCLUSION AND RECOMMENDATION

This chapter covers the derived conclusion and some

recommendation to the management for the successful continuance

of its operations.

CONCLUSION

Researchers concluded that starting a business is a complicated

process because it requires preparation, familiarity with the

industry, financial funding, and knowledge of appropriate

business. There are really many moving parts to consider, all of

which come under your jurisdiction as the business owner.

Based on the analyzation of gathered data, we also concluded

that most of the students of Araullo University want to try and

taste our proposed study which is establishing an Empanada Mania

inside the campus of Araullo University. It was also our

opportunity to earn profit because the University was

continuously growing because of its good marketing strategies.

Although empanada is new to the market, based on the survey,

there is a high possibility that the product would be in demand.

 62

It is also our chance to give them a high satisfaction because

we will make our products tastier to make them crave more.

RECOMMENDATION

As mentioned above, starting a business is not easy; we

recommend that before putting up a business, I strongly suggest

that would-be entrepreneurs do a business plan. As a result of

completing the plan you will be much better prepared and know

whether or not your business idea is feasible. We also recommend

that find a right time to enter in the competition or market.

Also find out how to make people crave about your products and

become an expert at what you do.