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Chapter I

Introduction

This section of the business plan presents the proposed business name,
address of the business, name of the owners, description of the business,
company logo, location of the business, and the total funding requirements and
the possible funding sources.

1.1 Proposed Name of the Business

The owners have decided that the proposed business name is Chix and
Chips.

1.2 Address of the Business

259 Sen. Gil Puyat, Makati City, Centro Escolar Integrated School-Makati

1.3 Name of the owner/s

The business owners of Chix and Chips are Antenor, Julia Erin R., Carlos,
Micah G., Estremadura, Mae Andre S., Lagon, Moncarla V., Legaspi, Wyen A.,
Guiao, Andrei Nicholas F., Lau, William D., Marquez, Gello Angelo V., and
Reuta, Jirk Zydell B.

1.4 Description of the Business

Chix and Chips offers to the market a valuable pair of Chicken wings and
fries. We give our customers the liberty to choose from different flavors such as
barbecue, spicy barbecue, cheese, garlic, and sour cream for the fries and
chicken wings. Chix and Chips advocates in satisfying the cravings of each and
every customer with goods that are surely fit within the customer’s budget.
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1.5 Company Logo

The owners have decided to name the business as Chix and Chips which
sounds a lot like ”Fish and Chips”, wherein both snacks complement each
other well. Fish And Chips is symmetrical to the products being offered by the
business, wherein Chicken wings and fries also complement each other very
well. The term “Chix” is already known by consumers, so the owners wanted to
make the name of the business as something that is catchy or interesting to
the customers that will also inform the market on what product is being
offered.

The owners of Chix and Chips came up with this logo as a brief
representation of the business, it aims to be straight-forward and informative
that is why both the main products of the business is already implied in the
logo, it aims to easily attract the market in a such a way that the products
being offered are already well-represented in the logo. It is a simple yet
appealing logo that is made for catching the interest of the market.
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1.6 Location of the Business

The business, alongside its competitors, will be located at Student

Activity Center in Centro Escolar Integrated School-Makati.

1.7 Funding requirement and sources

This table presents an overview and summary of the funding
requirements and sources of the business that is in need for the
production of goods.

INGREDIENTS AVERAGE PRICE Quantity

3kgs of Chicken
Chicken Wings PHP 126 per kilo
wings
Fries PHP 188.50 per pack 3 packs of Fries
Flavors
(Barbecue, Cheese., Sour PHP 20 per pack 3 packs per flavour
Cream, Garlic Powder)
Spice/s
(Chili Powder, Salt and PHP 9.60 per pack 3 packs of spices
Pepper)
4 packs of Chicken
Chicken Breading PHP 15
Breading
2 bottles of Cooking
Cooking Oil PHP 50
Oil
Lemon PHP 24 per piece 4 pieces of Lemons
Honey PHP 100 per bottle 2 bottles of Honey
Tube Ice PHP 30 per pack 3 packs of Tube Ice
Initial Cost (Food
PHP 498.1 PHP 1,713.3
production)
NON-FOOD AVERAGE PRICE QUANTITY
Paper Cups PHP 45 per bulk 3 bulks of paper cups
60 pieces of paper
Paper Meal Box PHP 3 per piece
meal boxes
Initial Cost (Non-food
PHP 48.00 PHP 400
Production)
TOTAL INITIAL COST PHP 546.1 PHP 2,113.3
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(Food and Non-food

Production)
OVERALL TOTAL
Others PHP 1,000
COST: PHP 3,028.3
Funding requirement and sources
Table 1.1

1.7.1 Estimated Total Initial Cost

The estimated total initial cost of all the financial
requirements and sources of the business for the production of its
goods is PHP 1,883.3. The amount computed is the estimated and
overall cost; it already covers the initial cost for the resources
needed in non-food production, mainly for the packaging of the
products. The business is aiming to have a quantity of 60 servings
of Chicken wings and fries to be offered to the market. The budget
is made for 1-day operation only, thus, if the business was to
extend its operations, the business would allocate the same
amount of money per day or per operation.

1.7.2 Estimated Period of Finding Sources

The estimated period of finding all the needed sources for the
production of goods of the business is estimated to be at least 3
business days to 1 (one) week. The owners of the business should
be able to find ingredients for the food production and the needed
materials for the non-food production. The business will be
acquiring the necessary ingredients in local wet markets in Makati
City specifically in Kalayaan Talipapa Market and will be
purchasing Non-food products for the packaging in Divisoria,
Manila.

1.7.3 Allocation of the Total Cost

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The business owners will be spending an amount of PHP

1,568.3 for the food production, namely the ingredients needed to
produce the goods. A total amount of PHP 315.00 is also allocated
for the Non-food production which includes mainly the packaging
of the products, the said materials are: paper cups and paper meal
boxes.

1.7.4 Sources of Funds

The business owners will be investing their own money that
is needed for the effective and efficient managing of the business.
The business owners will be looking for investors or could be
borrow money from financial institutions that are willing to invest
or lend financial resources that could cover the amount needed for
the production of goods, maintaining good service, and running
and managing the business.

Chapter II

Executive Summary

This section represents the VMGO, the business model, the business and
production positions, wealth improvement approaches, and the parties
supporting the study.
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2.1 Vision, Mission, Goals and Objectives

Chix and Chips have established short-term, medium-range, and long-

term objectives that will help and guide the company in maintaining a long-
term and successful venture that does not only aims to earn profit but also to
make a change in the food industry.

Objectives:

Short Term Objectives (1 to 3 years)

● To establish a productive, passionate and creative employees

● To be able to attract the interest of the target market or the different
segments of the market
● To gain the loyalty and trust of customers
● To be able to establish good customer service
● To enable people taste unique chicken flavors
● To provide good service to the consumers

Medium range objectives (4 to 5 years)

● To give customers a new yet nostalgic experience with our product

● To be able to offer new products, in result, new food experience to
customers
● To help customers buy food that is affordable and is with value for them
● To be one of the uprising franchise in the Philippines

Long Term Objectives ( 5 to 10 years)

● To be able to give back and contribute to the community that our

business is based in
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● To be able to be one of most successful franchises in the Philippines

● To have a huge amount of franchisee
● To be able to dominate the food industry

Mission

Our mission is to provide the needs and wants of our customers in terms of
high quality and affordable foods through promoting the outstanding taste of
Chicken wings and fries in our country, giving them the opportunity to taste
one of the delicious food given to us by the people in America and France in a
more hassle-less way that we could do to satisfy their demands.

Vision

Our vision is to become one of the most successful franchises in the

Philippines, but still being able to show love with our own culture and an
optimistic point-of-view in accepting others; To become a well- known company
that sells a high quality, affordable, and delicious snacks that will satisfy one’s
cravings for Chicken wings and French fries.

Goal

To become a profitable marketer who sells worth-buying snacks for our

potential customers. Acquiring positive feedbacks from our buyers, that will be
used as a way to improve our product, and to expand as well.

2.2 Business Model

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Chix and Chips established their business model starting from their
partner network, which modifies the way how their partners/ colleagues are
able to interconnect into its system, creating oneness throughout, and that is
by how the management handle those people under them, via meetings, social
media, etc. that forms coordination towards alliance. For the key activities and
sources, actions to be done are as follows as Chix and Chips' management is
able to permanently identify their resources and priorities, in order to promote
and encourage consumers, withal persuade prospect business partners to
invest. Furthermore, cost structure mainly focused on the expense to be done
in the making of the enterprise, including the raw ingredients to be used in the
preparation of the products to be served, as they offer the combination of
chicken and chips in one serving with the customer's own preference of drinks
to go with it.

Additionally, their customer relationship planned to be as smooth as

possible, allowing customers to express themselves freely as they suggest
further improvements on the business. On the other hand, customer segment
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points out the students and faculty members of Centro Escolar University
Makati which are their potential customers.

Moreover, distribution channels will be performed directly as direct

interaction would be done in the process. All in all, revenue statement aims to
obtain the target profit Chix and Chips have set and that concludes the
business model of this venture.

2.3 Business and Product Position

Product positioning of Chix and Chips includes numbers of different

essentials. Product will be positioned in a favorable way for the target
customers through advertising, the channels advertised through, the product
packaging, and even the way the product is priced. Market research may have
revealed that the product (chicken & fries) is popular among teenagers. Via the
collection of information on customers and their purchases, future product
positioning strategies can be based on actual sales data. This will implicate an
even more effective way than basing product positioning on the opinions of
potential customers, such as in a focus group, because this positioning is
based on real behavior rather than speculation.

2.4 Wealth Improvement Approaches

This section of the executive summary describes the methodology or

approaches that will be taken by the business in order to:
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2.4.1 Maintain a competitive advantage

In this factor, strategic ways to surpass competitors will be taken, to be

able to position the business itself a trademark consumers could always
remember, and Chix and Chips applies this factor in regards to their decision
of combining two plain foods into one serving, in order to possibly attain
delightful dishes that are new to the eyes of the folks. Withal, the flavors they
add into it also move their uniqueness into the next level, particularly on the
will they offer into their consumers/ customers to decide based on their own
preferences, on what foods they want to combine, on what flavors they want to
add, and on what drinks they would love to be with it. Hence, Chix and Chips
management thinks that those gestures/ actions are some of the stepping
stones that they could take to enhance and develop.

2.4.2 Position the business in the market

At first, positioning Chix and Chips might not be that easy, for the reason
that it’s like taking risks that are unpredictable, profit isn’t assured. Despite
that fact, Chix and Chips management is determined to pursue and make this
work, that’s why when the business is about to start functioning, advertising
and marketing would be performed towards their prospect customers, e. g.
through fliers, posters, announcements, social media (posting), and so on, that
could encourage them to patronize and have a try. Thus, positioning means
leaving a mark into the minds of the consumers.

2.4.3 Improve Market Share

Improving market share simply points out the contribution of this business
into the community, and improving it also increases profit. In return, giving
benefits and advantages towards their customers, due to the gratification and
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high quality it offers. Therefore, after positioning Chix and Chips, expansion
and other matters concerning to market share widening will be done.

2.4.4 Maximize the Utilization of resources

Resources are vital in a business, specifically in Chix and Chips, and

maximization of it is a must which leads to development. First things first,
resources should be checked upon opening that’s why it would be critically
checked before being approved, and Chix and Chips chose to buy products/
ingredients they need in the following: Wet and dry markets. All in all, this
sums up a part of the expenses that they would particularly have while serving
delightful foods and unforgettable experience in their customers.

2.5 Parties Supporting the Business

This section describes the parties that strongly support the business.
The parties that have direct relationship with the business are as follows:

2.5.1 Consumer

Today a lot of consumers want frictionless service and are loyal to

businesses who meet their growing demand so fast, relevant and seamless
experiences. For the business, it’s difficult to keep finding a position to make
trademark for the consumer. Creating two products in one order can attract
consumer to buy. However, the bigger challenge is building an organization
and culture that support this mission.

2.5.2 Creditors
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When creditors review the business plan, they expect to see that the
owners have put an abundance of serious thought into the venture. Positioning
Chix and Chips will not be easy because it contain risks like 50/50 probability
to succeed. The venture should present clear evidence that the new business
aims to succeed by meeting proven market demand with a product of Chix and
Chips and a service that would deliver an exemplary satisfaction thoroughly.

2.5.3 Suppliers

First, Chix and Chips will find wholesalers purchase that have large
quantities of goods and then resell them in the same quantities but in a higher
unit price. Hence, exclusive suppliers generally offer the lowest price because
they are selling in large quantities, and are reluctant to work with small orders.

2.5.4 Employees and Staff

Chix and Chips’ management won’t act like as if they’re above in their
employees or in their staff. Chix and Chips advocates’ real and transparent
manner of functioning, so if the employees will ask something about how this
certain works, management will genuinely answer it because shielding
employees from the truth will do nothing but hurt and doubt that would
primarily affect the company, as a system. Moreover, transparency is usually
accompanied by a few uncomfortable conversations, but those conversations
prove that the management cares enough to deliver the hard truth, which will
mean a lot to employees. Hence, unity will be fostered that would depict to a
venture that has a consecutively raise in employees productivity.

Chapter III

Environmental Analysis
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This section presents the industry analysis covering the forces directly
affecting the proposed business: the trend in the industry, the consumers, the
competitors, market forecast, market share, market position, and marketing
strategy.

3.1 Global Analysis

Chix and Chips, located in the Philippines, will be able to have a plenty
amount of sources of raw materials to produce its products. Chicken wings and
French fries are almost found in every location, it is a crowd favorite and it is
probably one of the most consumed snacks in the Food Industry. Both
products come as a pair, one can’t be bought without the other. It is
conveniently easy to make and convenient to eat. Customers, though they
could make it themselves, still prefer to buy these snacks out of the comfort of
their homes in hopes of finding good and quality food, Chix and Chips
established goals in which the company would invest time, effort, and money to
satisfy and fulfill every customers’ satisfaction and to reach excellence in
preparing Chicken wings and French fries.

3.1.1 Trend Analysis

Almost every restaurants and/or food chains have included Chicken

Wings in their menu. Restaurants are using offers such as unlimited-chicken
wings as one of its marketing strategy to attract and create loyal customers. The
target market does seem to avail those kind of promotions in which the
customers do spend their money to avail promos that includes Chicken wings.
Moving along, French Fries have never left the food trend ever since fast food
chains have included French fries in their menu, it is also favored by the mark

3.2 External Analysis

Situational Analysis
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These are the factors that the company considered to be able to start a
successful business:

STEP-L Analysis
Political and Legal Environment
1. When is the country’s next election? How can this impact the
business?
For the next election in 2022, the transition to newly elected officers can affect
the business with new laws and policies going to be made in relation with the
business industry. There is new laws yet to be adjusted by the business.

2. What are the existing legislation or laws that directly or indirectly

affect the industry?
Existing laws such as the Train Law indirectly affects the food industry
wherein prices of products used to produce goods and services are increasing.
The inflation rate of the economy has gone up to 6.8% where it affects both the
industry and its consumers. Chix and Chips will apply the rules and
regulations made by the current government in running its business.

Economic
1. How stable is the current economy? Is it growing, stagnating, or
declining?
According to a news article, “National Statistician Lisa Grace Bersales
announced on Thursday, May 10, that the gross domestic product (GDP) grew
by 6.8% from January to March 2018. This is the 10th consecutive quarter
that the economy grew by 6.5% or better.” This is the latest news article
regarding our current economy, and it states that the Philippines’ economy is
growing.
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2. What is the inflation rate? Does it have an impact on the sales of the
product?
6.8% is the country’s inflation rate. Inflation rate does have an impact to
Chix and Chips due to the fact that the inflation of our economy increased the
production rate of our goods will probably be affected. The level of purchasing
of customers may change and the supply of our product might become short
since the prices of products we use in producing our own goods have risen up.

3. If the customer’s level of disposable income is changing, how is this

affecting industry sales? If the disposable income drops, do the
customers choose not to buy the product anymore?

The customer’s level of disposable income dictates whether he/she will

buy or not. This indeed affects the industry sales vice versa. Since chicken
popcorn and fries are immensely consumed by customers, they are likely to
spend their disposable income in our product. Moreover, when disposable
income continues to decrease then the customer will be incapable of
purchasing our product that leads to a lesser sales production, most especially
when our product’s price have gone higher.

4. How is globalization affecting the economic environment?

Globalization has a big effect in our economic environment because
Globalization has led into increase the consumption and production of
products, which has impacted the ecological cycle. Increased consumption
leads to an increase the production of goods.

5. What are other economic factors that the company can consider?
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There’s a lot that can affect the factors of the business some are: interest
rates, demand and supply, recession, and inflation. For example
demand, Demand is how willing and able a consumer is to purchasing
what a business offers and supply is how able the business is to make
available what the consumer needs.

Sociocultural
1. Do consumers have a favourable image of the industry?
The food industry has a favorable image of being able to cater an
experience to its consumers varied traditions and cultures that is able to be
expressed in food. The food industry of the Philippines has been able to cater
different cuisines such as Chinese cuisine, Indian cuisine, French cuisine, etc.
Meaning, its food industry is diverse which makes it have a favorable image to
the consumers.

2. How would attitude shifts affect industry sales (e.g., customers’

preference for healthy choices)?
The companies that are under the food industry should be able to cater
different lifestyles and preferences of their consumers so that the company may
be able to attract all types of consumers. If a certain company is not able to
cater what the consumer prefers, it will result in consumers buying from
competitors that are able to give their preferences.

3. How do religious beliefs and lifestyle choices affect the population?

Religious beliefs and lifestyle choices varies in needs and wants,
especially in food. Companies should have a huge variety of food items that will
be able to cater the different religious beliefs and lifestyle choices of
consumers. For example, customers who prefer to have a healthy lifestyle.
Consumers with this kind of lifestyle prefer vegetables and healthy meals,
restaurants should have a healthy meal in their menu to be able to cater what
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consumers with a healthy meal in their menu to be able to cater what

consumers with a healthy lifestyle wants.

4. What are other sociocultural factors that the company can consider?
Consumers’ lifestyle is continuously changing; restaurants should have a
variety of food items in their menu. Through this, restaurant can still be
able to give the needs and wants of different types of consumers.

Technological
1. Are there new technologies that the company can take advantage of?
With the use of new technologies such as machines, laptops, mobile
phones and etc. that will help the company establish good service to
consumers in terms of serving delicious food in a short period of time.
Cellphones and laptops can also be used to keep up with the customers and to
know what is trending in the market.

2. Do its competitors have access to new technologies that can improve

their competitive advantage?
New released technologies can also be accessed by other companies. In
this situation, our company should gain more knowledge and strategies in
order for our company to compete with other companies and even exceed their
standards.

3. Are there technologies that the company's competitors are using but is
still has yet to adapt?
In our modernized era, technology is always evolving. We have yet to
adapt to give the company a competitive advantage from other companies. This
is true not only on a personal and professional level, but also for the company
as a whole.
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4. What are other technological factors that the company can consider?
One technological factor that the company can consider is Internet
connectivity. It’s inevitable that in recent years global internet connectivity has
been on the rise. This presents an even larger market for many companies who
use the internet to connect with their customers. A global rise in internet
connectivity might mean less interest in traditional communication means,
which is a negative consequence for some telephone service providers will have
to change their offerings to stay relevant, while paper-and-ink printing
companies might receive less business.

3.3 Internal Analysis

S.W.O.T Analysis
3.3.1 Strengths:
 It gives the customers the convenience and accessibility of purchasing
our product. Our franchise aims to serve customers with comfort,
convenience, and belongingness. We want customers to experience a
nostalgic experience with our product, Chicken popcorn and fries are a
big part of everyone’s childhood, so, we want our customers to
experience the taste of their childhood again.

3.3.2 Weaknesses:
 It doesn’t promote Filipino culture; the product is more on patronizing
other race’s cuisine.
 Majority of its product resembles the cuisine of South America.
 The business have inexperienced employees.

3.3.3 Opportunities:
 It catches the interest of the different segments in the market, since our
product can basically be purchased by anyone.
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 Let’s the people of the Philippines go into the next level of interconnecting
and discovering others culture.
 The business makes it possible to taste an undeniably delicious food
from America with the convenience of purchasing it here in the
Philippines.

3.3.4 Threats:
 The threats that the business might face is occurrence of direct and
indirect competitors.
 Some consumers might think that this restaurant was established to
grasp their own norms away from them; thus, resulting to consumers
not wanting to spend their disposable income on the products.

3.4 Industry Analysis

Porter’s Five Forces Analysis
Rivalry among existing competitors - High; the food industry in the Philippines
is saturated with American cuisines, such as burger chains. Though, in terms
of quality difference from competitors, the company will be able to give quality
and delicious food.

Threat of substitute products - High; Consumers are offered huge options in

where to buy products that they can substitute with ours. The difference is
that consumers will not be able to have the same flavors that the business has
to offer which is why cost differences exist between what the company’s
competitors offer.

Threat of new entrants - High; The business should be able to offer their
customers quality goods since threats of new entrants are high, burger chains
are now beginning to saturate the food industry. The business should be
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knowledgeable of what the customers are demanding for, the business should
be willing to invest vast amount of time, money, and should be able to adjust to
be able to give consumers what they want.

Bargaining power of buyers - Moderate; Filipinos enjoy chicken popcorn and

fries, they consume a huge amount of these products. The company will be
able to serve quality food with bringing consumers with nostalgic experiences
and flavors with the food. Prices are affordable for consumers in exchange for
authentic and quality food.

Bargaining power of suppliers - Moderate; There are number of suppliers for

the production of the business’ goods. The business will make sure of the
standard and quality of the supplies bought. Though, suppliers that produce
supplies with good quality and are able to build a relationship with the
business and become partners is hard to find and establish, the company
should be able to find various suppliers.

3.5 Customer/Customer Analysis

The market is in favor of the dominance of Chicken wings and French

fries. Customers are willing to spend their money on snacks that they prefer,
two of which are Chicken wings and French fries, both goods have always been
a favorite. Customers will be willing to purchase Chix and Chips’ products
since it is very timely and in demand by the customers themselves.

3.5.1 Demand Analysis

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Chicken wings are found in almost every menu of any restaurant since
customers seem to be demanding Chicken wings, it is not just convenient to eat,
but it is consumed by a group of people, in which it brings a comforting and
happy feeling to customers, it brings people together. This is one of the likely
reasons why Chicken wings are in demand in the market at this very moment.
Restaurants and fast-food chains are also offering a lot of strategies that
includes Chicken wings and fries that do attract a large number of audiences.

3.5.2 Market segmentation and targeting

The market segment that the business will be targeting is students, who
are gravely interested in the product. The business made sure that the product is
appropriate to the budget of the market segment, in a way that would convince
or persuade them to easily purchase the products. The business has also made
sure that the product is appealing to the market segment.

3.7 Competitors Analysis

Competitors

Direct Competitors

1.) 7-11 Establishments

7-11 Logo

Figure 3.1
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7- Eleven is known as one of the most famous convenience stores

worldwide. Considering its products includes snacks such as chicken nuggets,
hotdogs, siopao, and more. Consumers are enjoying its product for the reason
of good taste and for being low priced.

2.) Ministop

Ministop Logo

Figure 3.2

Ministop is also another convenience store partnered by Japan. In which

is also known because of its good- tasting snacks which includes chicken
nuggets, pork toppers, hotdogs, and more. A lot of customers have been
pleased because of the company’s unique tasting products.

3.) Family Mart

Family Mart Logo

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Figure 3.3

Family Mart is another Japanese convenience store, franchised in

Philippines. This convenience store is known for selling unique snacks such as
fishcakes, salad, siomai, crab sticks, and more. Many customers see Family
Mart as an expensive convenience store but know that the price is worth its
products.

Indirect Competitors

1.) Purefoods Chicken Nuggets

Purefoods Logo

Figure 3.4

Purefoods Corporation is a well-known company in the Philippines that

sells frozen products or even processed meats. It is also a successful
corporation that a lot of people are buying from it because of the quality
product.

2.) Potato Corner

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Potato Corner Logo

Figure 3.5

Potato Corner is a global franchise. It is highly-known for its bestselling

flavored potato products of French Fries and Hash brown. Consumers enjoy
Potato Corner products because of some reviews that it is worth- buying for.

3.) CDO

CDO Logo

Figure 3.6

CDO is a successful meat processing company founded in the

Philippines. The company sells meat- processed products that are high quality
and affordable by many people.

3.7.1 Supply Analysis

Since the food industry is infiltrated with Chicken wings and French fries,
the availability and accessibility of supplies for the production of these goods are
in reach of the business. In this way, the business will be able to purchase raw
materials that are with quality and fresh to ensure the highest satisfaction of the
consumers.

3.8 Creditors
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Financial Institutions or private or non-private investors could be the

creditor of the business. Through this, they could fund or loan some money
that the business could use in further improving the business.

3.9 Supplier

The business will be working with a poultry barn or in the local market
as the source of supplies needed for the main ingredient which is Chicken
wings. For the French fries, the business will be negotiating with the local
market and/or local farmers. By doing this, the business is also helping the
farmers who are facing a drought regarding to their oversupply of goods. The
people behind the business makes sure that the product they product is with
quality.

3.10 Government

Every business, whether it’s a micro-business or macro-business can be

beneficial to the government. Businesses pay a significant portion of all taxes
including income tax, property tax and employment tax. Having more
businesses in the local economy can boost tax income for local governments,
bringing in more money to repair roads, develop schools and improve public
services, lastly, businesses helps to increase the employment rate in the region.
Nevertheless, rules implemented by the current government have a huge effect
in the production of goods and management of the business, one of which is
the newly regulated law which is the TRAIN Law, in which it affects the pricing
of varied products: raw materials needed in production will result to having
higher costs meaning a higher price for the final goods.
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3.11 Shareholders

The shareholders will serve as the lifeblood of the business since these
people will serve as the source of financial investment needed in the business;
wherein they will be able to invest money that will be used in further
developing or maintaining the system and management of Chix and Chips, in
return, they will have a share in the profit made by the business.

OWNERS SHARE
Antenor 11%
Carlos 11%
Estremadura 11%
Lagon 11%
Legaspi 11%
Guiao 11%
Lau 11%
Marquez 11%
Reuta 11%
Table 3.1

Share of Owners

3.12 Employees

The business will be needing employees that are able to get the job done
and is able to achieve its goals. Both the business and the employees have a
huge impact in the business. Without the business, there would be no
employment opportunities and if the business isn’t able to find skilled
employees, this will lead to slow service and the business facing a serious
internal problem. The employees can benefit from Chix and Chips even if the
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business is gaining or losing profit because despite of these circumstances, the

business pays the employees based on their work performed.

3.14 Trade Association

The business will be seeking a membership on trade associations to

improve our business and other businesses alike, in this way, it will the
business know what to improve on. One way for Chix and Chips to be able to
penetrate the market, our business could establish a trade association with
other food stalls that will also be participating in the business fair, in this way,
businesses will be able to build up a constructive competition with one
another.

3.15 Market Forecast

The market is infiltrated with Chicken wings and French fries both go
well together. It is a delicious pair in which you can’t purchase the Chicken
wings without the fries and vice versa. The market seems to be reacting
positively to the dominance of chicken wings and fries in the food industry, in
which every meal, the customers are given a choice to include French fries in
their meal. Since a lot of our competitors are offering Chicken wings and fries
in their menus, Chix and Chips will be facing a tight competition that the
business owners would take constructively to help improve and bring the
business into success.

3.15.1 Demand and Supply forecast

There is a wide demand for Chicken wings and French fries,

endless promotions between these pair are rampant in every restaurant and in
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every fast-food chain. Since both products are well known to the customers,
suppliers are engaged and invested in providing raw materials to businesses
that are projecting to venture in the food industry. There are a lot of suppliers for
Chicken wings and French fries, in which both are particularly and conveniently
accessed by business owners and the customers themselves.

3.16 Market Share

Chix and Chips is looking forward to maximizing its market share, with
increasing its profits and maximizing its exposure to the market. The business
will only be entering the food industry in hopes of competing against small and
big competitors and becoming one of the most successful franchise, not only in
the Philippines, but also internationally.

3.16 Market Position

Chix and Chips is a combination of chicken and fries that is in trend

with the food industry right now. Since Chix and Chips is a franchise, the
choice of business is quite unique than others, for the reason that chicken
wings and fries are usually seen in restaurants and big establishments. Chix
and Chips prioritizes good service and aims to employ well educated personnel
(in terms of how the employees handle the business) so that customers may
often come back and enjoy our product. The business made sure that it doesn’t
only prioritize in serving good and quality products, but also good service.

3.17 Market Strategy

• The target customers of the business are those who are enthusiast to the
product. What the business is selling to the customers are chicken and
fries, specifically chicken wings. Unlike any other business that also has
chicken and fries, the business is offering a budget friendly products that
can be afford by anyone.
 29

• Thru outbound marketing, the business can use the television, radio,
telemarketing, and etc. in promoting the product.

• Inbound marketing can attract customer through the use of social

media.

• Through the use of social media, the business can bring more customers
to buy the product. Using social media can increase the exposure of the
product to the people and by that; the business can score more
customers than ever.

• Having an Eye-catching signage and logo will help the business attract
customers and can be easily recognize, by being consistent on social
media customers will be updated if there are new products available.
Participating in local events helps the business advertise and
communicate with local customers.

Chapter IV

Business Description

This section shall describe the product to produce, the equipment

needed in the small business, the size of the business in the terms of
capitalization and scope, and the personnel required to handle the operation.
 30

4.1 Nature of Organization

Chix and Chips is a franchise with a main purpose of wanting to serve

the market a pair of delicious pair of Chicken wings and Fries. Both products
are probably one of the most favorite and widely-consumed snacks in the
market, so, our organization wants to give the market a convenient and
accessible way of purchasing high-quality and affordable chicken wings and
fries. Other than good and quality food, the organization aims to provide good
service that would create loyal customers.

4.2 Product or service that it plans to produce

Chix and Chips is an enterprise that offers a delicious pair of Chicken

wings and fries to the market with a low price that doesn’t sabotage the quality
of the product.

4.3 Various Plant and Office Equipment

Chix and Chips will be allocating a certain amount of money for the
necessary office equipment such as a printer, desks, computers and/or
laptops, Xerox machine, etc. These equipment are necessary for business
documents and for a more efficient and organized transactions with clients.
The business could also go out of the establishment to access some of the
stated equipment to lessen the expenses of the business. These are necessary
for business documents and for a much efficient and organized transactions
with clients.

4.4 Size of the proposed budget

 31

The owners of the business will be providing a necessary amount of

money for the start-up capital of the business, in this way, the flow of
production or the flow of the business in general would be more effective and
efficient. The business owners will be allocating PHP 1,700 for the production
of goods, PHP 400 for the packaging, and PHP 1,300 or other expenses such as
utility expense, marketing, expense, equipment, etc. The total proposed budget
of Chix and Chips is PHP 3,400.

4.5 Future parties with whom contacts may be necessary

It is imperative that Chix and Chips should be in contact with suppliers

who offer the necessary resources that the business needs, it is also important
that beforehand the business checks the integrity and credibility of its
suppliers for safe and clean production of the products. The business should
also be in contact with financial institutions that could invest or could loan the
business a certain amount of money for the production of goods of the
business. Marketing firms is also one of the future parties in whom Chix and
Chips should be in contact with, through this, the business will be able to have
a marketing strategy to promote the identity of the business successfully.

4.6 Personnel Requirements

The business will be establishing standards for its personnel; the

business will be requiring its personnel to have skills, most importantly,
interpersonal skills and knowledge for day-to-day operations. The business is
in need of personnel that would directly communicate with customers,
personnel behind the cash register and personnel who will be in charge of
producing the goods. The owners of Chix and Chips will take up the role of an
 32

Accountant, since the owners are eligible and knowledgeable enough in that
particular area, in which case, the handling and allocating of income would be
supervised by the owners. The business owners would take up some of the
roles needed to lessen the expenses.

4.7 Administrative Operation

The business will be setting rules and regulations for day-to-day

operations. The business owners are committed in handling and managing the
flow of the business efficiently and effectively. Long-term plans and goals for
the business are established such as being one of the most successful
franchise and to be known and popular in the food industry. These long-term
plans and goals would serve as a positive outlook of the business and its drive
to be successful.

Chapter V
Organizational Plan
The organization plan provides a detailed description of the business in
terms of the following:

5.1 Form of organization

5.1.1 Capital Requirement

 33

For starters, the start-up capital of the business would be an estimate of

3,100 pesos. This is already inclusive of the equipment and warehouse that the
business owners will be using in production. This includes the marketing
agenda that would have an estimated cost of 500 pesos. The raw
materials/ingredients would cost 1,700 pesos: this already includes the main
ingredients such as Chicken, potatoes, flavored powder, lemon, etc. For the
remaining budget, which costs 400pesos, this money will be used as an
expense for the acquisition of Non-food products used for the packaging of the
product. The business will also be allocating a remaining amount of 800pesos
for other expenses.

MATERIAL
CAPITAL

Marketing; Flyers, brochure, and social

PHP 500
media accounts.
PHP 1,700 Ingredients for Food Production
PHP 400 Non-food Production
PHP 800 Others
PHP 3,400 TOTAL
Capital Requirement

Table 5.1

5.1.2 Management and supervisory skills

A person who owns a business should possess skills communication

because having excellent communication skill allows supervisors to speak
impact, whether it is off-the-cuff dialogue or brief updates to their team. It is
essential to keep thoughts organized and to the point, Being a good leader help
bring accountability to their teams by creating a supportive and motivating work
environment. Having an interpersonal skills enable an individual to develop
highly effective teams that are built upon consensus, effective meetings, social
style understanding and relationships, time and management is a fundamental
 34

skill that anyone can have, being able to balance a heavy workload and time
constraints while managing and delegating other employees and projects is an
essential skills.

5.1.3 Tax Implication

The government regulate taxes in businesses in which it affects the price
of products. The government impose taxes on goods thus resulting to a higher
cost in production. The business owners of Chix and Chips will be experiencing
tax implications in acquiring goods. Business owners will be using VAT or Value
Added Tax on its products.

5.1.4 Government intervention

Newly regulated laws inevitably affect the system and management of
businesses. The government also regulates businesses monthly, checking on the
financial state of the business and health and safety of production and
workplace.

5.1.5 Nature of Business

The different types of businesses are Service business, Manufacturing
business, Merchandising business, and Hybrid. Chix and Chips can be
classified as a Hybrid business. It is a type of business in which it combines two
different elements. The business is a hybrid type of business wherein it
manufactures its own products and is still able to provide services to its
customers.

5.1.6 External Financing requirements

 35

Chix and Chips will be obligated to pay a certain amount to be able to

have a business permit. Since it is only done inside the vicinity of the school, the
business owners are only obligated and responsible to report to its Entrepreneur
advisor.

5.2 Liability of the owner/owners

The business would be a form of organization wherein the owners are
liable to only a certain aspect or department of the business; the business will
be classified as Limited Liability Corporation since it has both the
characteristics of a partnership and a corporation. A business partnership
includes two or more persons who can contribute in the company while for the
corporation it is represented by shares of stocks.

5.3 Organizational Structure / Management team

Mae Andre S.
Estremadura

Overall Manager

Moncarla Lagon

OM Associate
 36

Micah Carlos Gello Marquez Julia Erin Antenor William Lau

Accounting Marketing Manager Service Manager Sales Manager

Manager

Wyen Legaspi Andrei Nicholas Guiao Jirk Zydell Reuta

Cook Cook Cook

Organizational Structure

Figure 5.1

At this part, factors an applicant should know and consider could be

found, enlightening anyone who wants to be a part of Chix and Chips regarding
the path they wish to take and enter. Through the management we have that
classifies whether a person is qualified or not. Overall, this summarizes the
things they should do, and responsibilities that they’ll shouldered.

5.3.1 Personnel Requirements

● Must be a Junior High School Graduate

- For the business owners to be sure that he/she has the right knowledge
and practice already
● Age ranges 16 - 20
 37

- Prioritizes that youth, giving the opportunity to have an experience

● Has a good moral from their previous schools
- To certify their good conduct and attitude which should be in line with
the law
● Proof that they’ve been from this certain school/ that they are enrolled
- For security purposes, withal, to validate identity

5.3.1.1 Job Description

As of now, the job we could offer couldn’t be divided into different tasks,
since the venture is only about to start, we just need someone/ people who
could help us all around, e.g. serving, preparing, cooking, entertaining, etc. In
short, their job rotates from the most common things server/helper do, selling,
advertising (through verbal communication), preparing of foods, entertaining
customers regarding their orders, and many more with limited privilege to get
involved in the decision making of the business (but open to suggestions),
except from receiving payments of the customers and accounting.

5.3.1.2 Role, Duties, and Responsibilities

Roles

● To be the person who follows command form his/her head/s

● To be productive in terms of work
● To have the proper etiquettes in his/her being
● To be an all-around helper who contributes his/her knowledge to the
business, in order for it to improve

Duties

● It is his/her duty to practice the principles the business have

promulgated
 38

● To show other people a resemblance of a good company, since he/she is

a part of it
● To obey the rules and policies implemented by the business

Responsibilities

● To satisfy customers in terms of service

● To constantly have a good customer relationship
● To be in line with the company’s mission, vision and objectives
● To maintain management’s exemplary treatment towards one another,
promoting collaboration and unity

5.4.1.3. Salary Requirements

Salary requirements are the total compensation that is needed for
an individual to work in a specific position. The total profit gathered by
the business will be divided fairly for the group members to earn from it.
The business owners will not be having any salaries expense since
their work performed will be classified as owners contribution.
5.4.1.4. Personnel Plan
Personnel planning are where the business determines their
human resources. By this planning, the works will be divided accordingly
with the individual involved in the business.

In this case, the group has its nine members. One of them will act
as the manager to manage and guide for the production process of the
business. There are also staffs that will prepare and cook the products.
The other will be in charge with the managing of expenses and profit. The
rest will be assigned as vendors, responsible for selling and marketing of
the product.
 39

Chapter VI

Production plan
The production plan presents or describes activities related to the
production of goods. The production plan is the result of the industry analysis,
particularly the study of supply and demand consumer behavior.

6.1 Production Schedule

 40

Production of good should be finished on the given time for not to extend
the production cycle that may ruin the budget.

6.1.1 Demand for Product

The business should always meet the deadline in producing the goods, for
the reason that consumers may be buying the goods and as producer it is the
duty of a company to satisfy the consumers need.

6.1.2 Availability of resources

Money: one of the resources needed in a business is money. It is used in buying

the ingredients for the product, tools in making the product and for the
production of advertisement.

Ingredients: in order to fully complete the product and happily satisfy the
consumer needs, the company needs the availability of the ingredients to make
the product. If one ingredient is missing then there will be a change of taste in
the product or may not be able to accomplish the finish product that will
disappoint the consumer.

Tools and advertisement: to fully finish the production of products and let the
possible consumer know that the company is selling the product the consumer
may need or may satisfy them.

6.1.3 Capacity of the plant

The warehouse or plant of the business should be able to store the

inventory and supplies of the business. It is preferred by the business to only
have one warehouse to be able to lessen the expenses that the business might
face.
 41

6.2 Production Process

6.2.1 Exact Processing Process

The way that the chicken nuggets were produced is in a natural way. A
fresh chicken breast is separated from its bone that will be used as the chicken
nugget. Second, is that it will be dipped in a beaten egg, then the special
breading depending on the customer’s choice of flavor, and for final touches, it
will be dipped into a bread crumbs before dipped frying the chicken nugget. As
for the French fries, we’ll be using a frozen ready-to-cook fries. The French Fries
will be dipped fried as well; if it’s cooked already then we’ll be adding the
flavoring depending on the customer’s choice.

Step by Step Process:

Step 1: Prepare fresh chicken wings

Step 2: Prepare special chicken breading

Step 3: Pre-hear pan with oil at between 230-260 degrees

Step 4: Fry Chicken according to your preference

For the fries:

Step 1: Defrost ready-to-cook French fries

Step2: Pre heat frying pan and oil with 350-375 degrees

Step 3: Fry French fries as your preference.

6.2.2 Materials, Parts, or Ingredients required

 42

The necessary ingredients needed for production are Chicken wings,

Chicken breading, Cooking oil, French Fries (Frozen), Flavored Powders such as
Garlic, Cheese, Barbecue, Chili, and Sour Cream,. For the production of the
beverage, the business will be needing lemon and honey. The business will be
needing basic kitchen tools and a fryer for production.

6.2.3 Expected time to process the product

The initial for the process of the product would be an estimated time of20-
25 minutes to cook the Chicken wings. However, the French fries will only take
about 10 minutes.

6.3 Processing Plant and Equipment

6.3.1. Capacity of the Plant or Machinery

Included here is the volume of equipment that will be used in producing

the product of the business. In the making of product, the business will need the
basic cooking materials, like the stove, utensils, pan, etc.

6.3.2. Model of the Machinery or Equipment

It is important to use a high quality model of equipment or any materials

that will be used in producing a product to have a positive outcome. This section
describes the model of machinery and equipment that will be used.

The business will use a Hyundai double burner gas stove as their main
equipment in producing the food product that they will sell.

6.3.3. Availability of Spare Parts

 43

It is necessary to think of an alternative in case the equipment are

defective or broken. There are spare parts that are available near CEU where
they can buy immediately in case of these troubles.

6.3.4. Cost and Terms of Payment

The transactions that will be done before, during, and after the business
will all be paid through the Terms and Policies of sales. In this case, it will be
easier for them to compute for the cost of every material, ingredients, and other
equipment to be paid off.

6.4 Sources of Materials

Before we could make a product that we offer to our customers, we first

need to identify clearly on where would our materials in doing it came from,
and those are to be discussed in this part.

6.4.1 Proximity of the sources of the processing plant

The business planned to take raw materials from the wet market for the
reason that there are so many markets in the vicinity, proximity of meeting all
those required quantity of materials in order for it to start processing would
increase. Making it possible for Chix and Chips to sustain the things they need
via accounting and strategic planning. Thus, enables management and finance
to collaborate well in accordance to the higher probability of attaining and
serving customers’ needs and demands delivered and ongoing.

6.4.2 Payment terms and conditions

For the supplier

 44

- Buying raw materials in wholesale would be the payment method that we

would use, considering the conditions our country have proposed in terms
of payment, that any defects could be returned during the limited time
given.

For our prospect customers

- As assured that we would gratify you regarding our product and service,
we strictly allow only one method of payment, and that is through paying
on the counter as you place your order. On the other hand, any complains
and suggestions regarding Chix and Chips would be entertained by our
assigned personnel, and if it’s been validated, compensation would be
delivered right away. Hence, the process of money circulation is noticeable
here.

6.4.3 Discounts and Demands

The time of launching and/or opening of the business, discounts are to be

announced to the customers. The business would be using this as a marketing
strategy to entice the customers to buy goods from Chix and Chips. The business
would be using Buy 1 Take 1.

6.4.4 Terms and Adjustments

Possible adjustments in price of products might be implemented when

unstable source of materials would occur, but expect that our management
would notice customers in advance to prevent a sudden distress in their part.
Also, we will be transparent on why does we suddenly imply changes. Further
information about this would soon to be discuss in its occurrence.
 45

6.5 Production Cost

The total production cost of the business is 4,000pesos. This is already
inclusive of the equipment and warehouse which is to be used by the business,
ingredients that are needed for food production and non-food products that will
be used for packaging of the goods. It also includes the expense for the
marketing agenda of the business owners.

Chapter VII
Operational Plan
The operation plan is a major section of the business plan that outlines the
various activities from the acquisition of raw materials to the delivery of the
products to the target customer.
 46

7.1 Evaluation of suppliers

Suppliers should be in an accessible location in which the owners could

be able to locate and see the state of facilities and equipment of the supplier.
Suppliers should have a clean and safe practice of producing raw materials to
not sabotage the business and the quality of the products.

7.2 Materials requisition and receiving procedure

7.2.1 Basis of Receiving the Raw Materials

The bases of receiving raw materials purchased by the business are

Order Number, Receipts, Delivery Note, Journal Entries, and General Ledger
recorded by the business.

7.2.2 Comparison of order and receipt

The business owners will be checking the quantity and quality of the raw
materials needed to be used in production of the business that are received from
its suppliers.

7.2.3 Quality of materials received

Upon receiving purchased goods or even services from a supplier, it is

important that the shipment is checked to make sure that the correct quantity
and quality was received. When a shipment arrives, it is a good idea for
receiving personnel to check it against the packing slip to make sure that the
quantities are correct. The thoroughness of the quantity check depends upon
how many packages are involved, and how important the contents of the
package are. If there are many packages, and there are many items in each
package to count, complete counts would be a very time consuming process. In
such cases, it may be better to use sampling to establish the quantity received. It
is important to make sure that the material meets quality specifications. If it is of
 47

great importance that no defects in quality exist, you will probably want to run a
quality check on each item of the entire shipment.

7.3 Storage and Inventory control system

7.3.1 Owning or renting a warehouse

The business would be in need of an appropriate facility that will be able

to hold the inventory and equipment of the business in which it will be used for
the production of goods. The business will be using one of the owner’s houses
wherein it is accessible within the location of the business. The warehouse of the
business would be located at Unit 1603 Makati Executive Tower 4 Sen. Gil Puyat
Makati Ave.

7.3.2 Management of the warehouse

The business owners will be the one responsible of supervising and

managing the warehouse. It will be supervised in order to not sabotage the
quality and cleanliness of the warehouse to have a safe production of goods

7.3.3 Procedures in the transfer of goods

The business will be using land transportation vehicles in order to transfer

products in one place to another.

7.4 Shipment System and Control

7.4.1 Approved of shipping and sales documents

 48

The business will keep record of all the shipment transactions that it will
be making and encountering in the future. The business will safely record every
transaction that it will be making from external transactions.

7.4.2 Terms of Shipment

The used means of transportation should be able to preserve the quality of

the product and be able to deliver it more time-efficiency.

7.4.3 Manner of Shipment of Product

The owners would be using their own means of transportation preferably

public or private vehicles in order to ship products from one place to another.

7.4.4 Other terms and conditions like sales contract

The business should be making sure that the transactions are safe and in
record for future references.

7.5 Functions of Support System

7.5.1 Finance

Having a strategy in financing helps the company gain profit and pay
fewer expenses. Without any financing strategy the company might lose profit
and be in debt.

7.5.2 Marketing

In marketing, a good tactic in making an advertisement make the

consumer interested in the product that will be beneficial to the producers. The
Marketing Department will help with the exposure of the business and enticing
the customers to buy goods from Chix and Chips.

7.5.3 Operation
 49

Operations Department will serve as the department with creating ideas and
making decisions for better management and a better system of the business.

7.5.4 Human resources

In producing a goods, the company does not only need a machine in

producing a product rather the company needs man power to work and serve the
consumers pleasingly. Human resources is an important support system
because they are the ones communicating with the customers.

Chapter VIII

Marketing Plan

The marketing plan details how the proposed business will sell its
product to the target consumers.

8.1 Objectives, Mission, Vision, Goal

Chix and Chips has established short-term, medium-range, and long-

term objectives that will help and guide the company in maintaining a long-
term and successful business that does not only want to earn profit but to also
make a change in the food industry.

Objectives:
Short Term Objectives (1 to 3 years)
To establish a productive, passionate and creative employees.
 50

To be able to attract the interest of the target market or the different segments
of the market.
To gain the loyalty and trust of customers.
To be able to establish good customer service.

Medium range objectives ( 4 to 5 years)

To give customers a new yet nostalgic experience with our product.
To be able to offer new products, in result, new food experience to customers.
To help customers buy food that is affordable and is with value for them.
To be one of the uprising franchise in the Philippines.

Long Term Objectives ( 5 to 10 years)

To be able to give back and contribute to the community that our business is
based in.
To be able to be one of most successful franchises in the Philippines.
To have a huge amount of franchisee.
To be able to dominate the food industry.

Mission
Our mission is to provide the needs and wants of our customers in terms
of high quality and affordable foods through promoting the outstanding taste of
Chicken wings and fries in our country, giving them the opportunity to taste
one of the delicious food given to us by the people in America and France in a
more hassle-less way that we could do to satisfy their demands.

Vision
Our vision is to become one of the most successful franchises in the
Philippines, but still being able to show love with our own culture and an
optimistic point-of-view in accepting others; To become a well- known company
 51

that sells a high quality, affordable, and delicious snacks that will satisfy one’s
cravings for Chicken wings and French fries.

Goal
To become a profitable marketer who sells worth-buying snacks for our
potential customers. Acquiring positive feedbacks from our buyers, this will be
used as a way to improve our product, and to expand as well.

8.2 Product Strategy

Brand name- Chix and Chips

Quality- Chix and Chips aims to offer high-quality products. We ensure that the
supplies in need for producing our product that we get from our suppliers are
sanitized and fresh. Through this, we can make sure that the possible highest
quality of our product and customer satisfaction is attained. The business will
also be using a clean and safe cooking method for our products. The visual
aspect of the product is, of course, of great importance. The business will make
sure that visual aspect of the product is appealing to customers.

Scope of product line- Our business aims to offer Chicken wings and fries that
can be flavored with cheese, barbecue, spicy barbecue, garlic, and sour cream
and for the beverages, our business will be selling Honey Lemon Iced Tea

Warranty- There is an assurance that the products that will be sold to

consumers are fresh and edible. The business is making sure that the products
they use is fit for the purpose intended and is merchantable. If the consumer has
a complaint about the product, the seller will assure that he/she will have a
refund.
 52

Packaging- To be able to be more unique than our competitors and to have a

good impression from our customers, the packaging of our product will be a Cube
paper container with the company’s logo as the design. For the beverages, the
business will be using paper cups which will also include the company’s logo.

Cube paper container and paper cups

Figure 8.1

Innovation- Fried chicken has become more popular than ever as chefs come up
with creative iterations to satisfy many different taste preferences. Consumers
say the key is to add new, adventurous levels of flavor that elevate the time-
tested fried chicken to innovative new menu heights. The business will add fries
to their product with different variety of flavors, in addition, the consumers can
choose whether it is spicy chicken wings or original chicken wings, consumers
can also choose from cheese, barbecue, spicy barbecue, garlic, and sour cream
for their chicken wings . As time goes by and more consumers are buying the
product, the business will add more flavors that is in the trend or what will the
consumers may want.

Chicks and chips creates a mark in the business industry in terms of its
combination and flavors of customer's choice, enabling creativity and taste buds
preference, that are primarily open into innovations such as mixtures of unique
 53

probable taste that could be patronized by the market. As for the use of
containers for packaging, it is comfortable for consumers because it is a wide
cube container that is easily handled and rest assured that it is well sanitized.

8.2.1 Brand Name and Description

Chix and Chips offers to the market a valuable pair of Chicken wings and
fries. We give our customers the liberty to choose from different flavors such as
barbecue, cheese, and sour cream for the fries and they are also given the
responsibility to choose whether they want their chicken wings original or
spicy. Chix and Chips advocates in satisfying the cravings of each and every
customer with goods that are surely fit within the customer’s budget.

8.2.2 Market – Based Mission Statement

Chix and Chips could fulfill a person's craving when it comes to chicken
wings and fries, through this product, customers would be able to taste a
delicious pair of chicken wings and fries in an affordable price without
sabotaging its quality.

Thus, in accordance to the mission of the business: to become the best-

selling and most known franchise of all. Withal, to provide a great tasting food,
that would bring positivity and enjoyment to the nation could be obtained,
when served successfully and productively.

8.2.3 Product Positioning / Unique Selling Proposition (USP)

The popularity of our products has been rampant here in the Philippines.
So in order to stand out from its competitors, Chix and Chips will have the
image of serving Filipinos good and exemplary chicken wings and fries. To be
able to be ahead of our competitors, our business will give exemplary
 54

importance to service that will encourage our customers to come back and buy
our product again. Customers are also given the will to pair up our products
with a low price without having to worry about the quality of our products.

8.2.4 Target Market (Demographic, Psychographic and Behavioral)

The target market of our company is active customers of all ages, though
the market segment that our business is offering to is students. Looking at the
age of the customers is a good starting key when it comes to pinpointing the
target audience of the upcoming opening of Chix and Chips. At the same time,
it's supposed to be location determines the types of patrons that will be
counted, thus, income is another variable that a newly established business
consider in deciding about their target customers.

Furthermore, restaurants and food chains have similarities in terms of

their target markets. It is usually those students who likes to buy chicken
wings and fries particularly in school as a sign of being practical in order to
save money. All in all, the demographic, psychographic, and behavioral
patterns of the customers such as their age, gender, frequency of purchase,
their attitude towards the franchise, etc. should be observed to fully
understand and know what the effective strategies to do are.

Demographics:
Our product can be able to attract a wide range of customers, though,
the demographic profiles of customers are mostly students, Senior High School
students, both Grade 11 and 12 that are aged between 17 to 18 years old.

Psychological:
Filipinos have a good attitude or approach towards consuming chicken
wings and fries. Both of these goods can be considered a to-go food that
 55

satisfies the cravings of most Filipinos. According to Tomacruz (2017): “Next to

pork, the average Filipino consumes about 11.6kg of chicken.” Meaning:
Filipinos are big in consuming chicken; our product would interest the target
market.

Behavioral:
Filipinos are huge in consuming both products. It is widely consumed
during merienda, in which according to Everything-Filipino (2018), there are
also ‘western choices’ that Filipinos include in merienda such as fries. Our
products are accessed by students mostly in in malls or through sidewalk
vendors. Through this, we want our products to be more accessible to
students, in which case, they wouldn’t have to go to the mall or purchase from
sidewalk vendors.

Our business will be taking advantage of this and will be making our
product accessible, convenient, and affordable for students and customers
alike for our franchise to be as successful and competitive as our competitors.
8.3 Pricing Strategy

Value-based Pricing is the method of pricing your products based on the

maximum price that customers are willing to pay for the benefits that they will
get out of a product. Through this method of pricing, our company will ensure
the maximum quality of our product since this will be our basis of profit. This
will ensure that the wants and needs of customers are heard and served; it will
serve as our company's mission to give out the very best products in the
market. The VAT or Value Added Tax is already included in the price.

The company will also be using Market Penetration Pricing. Since the
company is just a newly established, the product will be sold for a low price so
that the target market will be encouraged to try out the product and the
company will be able to make an impression to its target market.
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Product Category:
Prices:

3pcs of chicken wings with fries (Any

Php 50
flavor)

Beverages:

Lemon Iced Tea Php15

Sago’t Gulaman Php12

Product Category
Table 8.1

8.4 Promotion Strategy

Advertising
Social Media
Chix and Chips will be promoting itself through the use of social media
accounts where most of its target market is present. Through this, customers
will be known of the presence of our business as part of the market.

Word of Mouth
One of the best ways to sell your franchise is through word of mouth
because customers are more likely to incorporate purchasing decisions through
the influence of their friends, family, etc. and public speaking can go a long
way.

Advertising Objectives
 57

The goal of Chix and Chips is to inform and persuade the market. To
elaborate further, our goal would be informing our target market and
persuading the customers of what value they can get from purchasing our
product. Through the use of both of this objective, this will help our franchise
be known and be as competitive as already established franchises. Both of this
will communicate the value of the product. The business could use promotions
such as Buy 1 Take 1 and promotions alike in order to persuade customers to
buy goods.

8.5 Distribution Strategy

The kind of distribution strategy a business will be using is crucial

and should be think of for many times, because it’s the medium of transaction
upon the business and the customers, in short, without an effective
distribution strategy, a business will not grow.
By the means of that, Chix and Chips will be using the direct
distribution strategy, this is due to the reason that this business can be
defined as a combination of manufacture and service type of business. Withal,
this indicates that the product or service will be delivered directly to the
customers.

Furthermore, through the use of direct distribution strategy, we will be the

one to interact and sell our products into the customers. Promotes the benefits
a direct business has, in relation to its sales, and profit mandatory placed in
our hands, that offers us flexibility, in regards to our free will to choose on our
working hours.

This will also help us build a good relationship towards our customers,
particularly because we have the opportunity to socialize with them personally.
Hence, for the customer's advantage, there’s an opportunity for them to test
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and try our products, knowing that they have a direct contact with us, as their
seller.

In regards to this strategy, we chose to locate our business at Student

Activity Center in Centro Escolar University-Makati, for the reason that, it’s the
best place for us to get close into our target market, also, the size of its space
indeed compliments the size we need in order to operate our business. That
aims to show and serve convenience and affordability.

Thereby, using direct distribution strategy together with our floor plan,
the flow of product and service dissemination will start directly from Chix and
Chips going straight to the customers that would both gain us profit at the
same time.

Direct Distribution Strategy Cycle of The Chix and Chips - Customers

Chix and Chips

● Manufacture cycle of what this business offer

● Its fully made product and services
● Interaction of the business towards their customers occur
● Builds a good customer relationship
● Marketing and promotional stuffs exist here

● The business would gain profit, while customers earn benefits and
satisfaction
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● For any concerns, the customers could easily contact the business to
address what they noticed
● Once been satisfied, customers would continue to patronize the
business more frequently

Customers
Benefits of having Direct Distribution Strategy
● Everything comes directly, that means it prevents barriers.
● Any concerns could be easily addressed that would result to a high
possibility of developments.
● It promotes convenience for both parties.

Chapter IX
Financial Plan
The last major section of the business plan is financial. It accumulates and
describes all the data expressed in monetary.

9.1 Important Assumptions

ITEMS QUANTITY TOTAL PRICE
Chicken wings 3kgs of Chicken wings PHP 126 per pack
Fries 3 packs for fries PHP 188.50 per pack
Flavors (Barbecue, Cheese, Sour 3 packs of flavor PHP 20 per pack
Cream, Garlic Powder)
Spice/s (Chili Powder, Salt, and 3 packs of spices PHP 9.60 per pack
Paper)
Chicken Breading 4 packs of Chicken Breading PHP 15
Cooking Oil 2 bottles of cooking oil PHP 50
Lemon 4 pieces of Lemons PHP 24 per piece
Honey 2 bottles of honey PHP 100 per bottle
 60

Tube Ice 3 packs of Tube Ice PHP 30 per pack

NON-FOOD

ITEMS QUANTITY TOTAL PRICE

Paper Cups 3 bulks of paper cups PHP 45 per bulk
Paper Meal Box 60 pieces of paper meal boxes PHP 3 per piece

OTHERS

Others PHP 1000

OVERALL TOTAL COST: PHP 3,028.3
Table 9.1: Important Assumptions

9.2 Key Financial Indicators

Demand and profit from the customers would be one of the key financial
indicators of the business. The shares and contributions of the business
owners is also one of the key financial indicators that will be able to help the
business grow in the long-run.

9.3 Break-even Analysis

Contribution 50% 55% 60%
Margin Ratio

Fixed Expense 5,000 5,000 5,000

Divided by: 200 200 200
Markup
Break Even Point 25 25 25
Units
Multiplied by 50 50 50
 61

Selling Price
Break Even Point 1,250 1,250 1,250
Table 9.2: Break-even Analysis
9.4 Projected Balance Sheet
Accounts 2019 2020 2021
Assets:
Cash 3,000 5,000 15,000
Equipment 3,500 20,000
Total Assets 3,000 8,500 35,000
Liabilities:
Loan Payable - 8,000 30,000
Equity:
Capital 3,400 15,000 50,000
Table 9.3: Projected Balance Sheet

9.5 Projected Profit and Loss

ACCOUNTS 2019 2020 2021
Sales 100,000 250,000 400,000
Less: Utilities 25,000 40,000 60,000
Expense
Salaries Expense 21,000 28,000 35,000
Supplies 15,000 40,000 60,000
Net Income before 39,000 142,000 245,000
Tax
Taxes (15%) 5,850 21,300 36,750
Net Income 33,150 120,700 208,250
Table 9.3: Projected Balance Sheet
9.6 Projected Cash Flow
ACCOUNTS 2019 2020 2021
Operating
Activities:
Sales 100,000 250,000 400,000
Cost of Goods 15,000 40,000 60,000
Sold
Labor 21,000 28,000 35,000
Total of 136,000 318,000 495,000
Operating
Activities
 62

Investing
Activities:
Equipment - 3,500 20,000
Total of 3,500 20,000
Investing
Activities:
Financing
Activities:
Loan Payable - 8,000 30,000
Capital 3,400 15,000 50,000
Contribution
Total of 3,400 23,000 80,000
Financing
Activities:
Total 139,400 344,500 595,000
Table 9.4: Projected Cash Flow

9.7 Business Ratios

In this part of thoroughly strengthening business’s credibility and

capability to operate, so called business ratios are to be made, and at this time,
Chix and Chips will just primarily assume hypothetical outcomes that the
venture would directly and indirectly experience through the process. For the
reason that actual operation aren’t yet starting, and since this part is required
the following subsystems, focusing on the main ratios are as follows to fully
enhance and clarify Chix and Chips foundation towards triumph and
development:

Main Ratios

 Current
 63

Chix and Chips’ profit shall surpass its liabilities and expenses, for its function
to continue processing without any lost. Also, current points out the business’s
capability to pay its creditors consistently as its liquidation able to meet what’s
required: Making it possible to be accountable for several times/ at all times.

 Quick
This replicates how the businesses are able to succeed to respond in the
venture’s current obligations, such as sustaining the materials needed for the
operation.

 Total Debt to Total Assets

This isn’t applicable as of now, since Chix and Chips prevents debts.

 Pre-Tax Return on Net Worth

Information about this shall be seen after computing the first business
earnings.

 Pre-Tax Return on Assets

Ratios regarding this are to be presented as soon as the operations begin.

9.8 Long-term Plan

After the first operation of the business, Chix and Chips will further expand
the product line and will further more venture in the food industry. The
business owners will establish goals that will inspire the establishment to grow
over the next few years. Chix and Chips are aiming to be profitable
entrepreneurs who offer in the market worth-buying goods and become one of
the most successful establishments.
 64

BIBLIOGRAPHY

Tomacruz (2017) Retrieved from: https://amp.rappler.com/1668-how-much-

meat-does-the-Filipino-consume

Everything-Filipino (2018) Retrieved from: https://everything-

filipino.com/filipino-food-merienda-favorites/
 65

CURRICULUM VITAE

Name: Antenor, Julia Erin R.

Date of Birth: April 16, 2001

Place of Birth: Nasugbu, Batangas

Sex: Female

Age: 17

Nationality: Filipino

Religion: Catholic

Father’s name: Adolfo O. Antenor

Occupation : Electrician

Mother’s name: Carmina R. Antenor

Occupation : OFW
 66

Educational Background:

Secondary

Centro Escolar University (2017-2019)

Nasugbu Christian Faith Academy (2013-2017)

Primary

Academia De San Francisco Javier (2007-2013)

Name: Carlos, Micah G.

Date of Birth: October 28, 2000
Place of Birth: Pasig City
Gender: F
Age: 17 years old
Nationality: Filipino
Religion: Roman Catholic
Father's Name: Manolito S. Carlos
Occupation: Technician
Mother's Name: Edna G. Ginez
Occupation: Housewife
Educational Background:
Secondary
Centro Escolar University (2017-2019)
Ususan Elementary School (2007-2013)
Tibagan High School (2013-2017)

Primary
Ususan Elementary School (2007-2013)
 67

Name: Estremadura, Mae Andre S.

Date of Birth: July 29, 2001
Place of Birth: Pasig City
Gender: F
Age: 17
Nationality: Filipino
Religion: Roman Catholic
Father's Name: Mark Allen S. Estremadura
Occupation: Messenger
Mother's Name: Melga S. Estremadura
Occupation: Office Staff
Educational Background:
Secondary
Centro Escolar University (2017-2019)
Guadalupe Catholic School (2013-2017)

Primary
M.A. Montessori School Inc. (2007-2013)

Name: Lagon, Mon Carla V.

Date of Birth: June 30, 2001
Place of Birth: Makati City
Gender: F
Age: 17
Nationality: Filipino
Religion: Iglesia Ni Cristo (INC)
Father's Name: Carlos S. Lagon (Deceased)
Occupation: Master Mariner (Seaman)
Mother's Name: Ramona V. Lagon
Occupation: Housewife
Educational Background:
Secondary
 68

Centro Escolar University (2017-2019)

St. Anthony of Makati Montessori Inc. (2016-2017)
Makati High School (2013-2016)

Primary
St Anthony of Makati Montessori Inc. (2011-2013)
(Fifth Honorable Mention)
La Paz Elementary School (2009-2011)
St. Catherine Academy (2007-2009)

Name: Legaspi, Wyen A.

Date of Birth: September 27, 2000
Place of Birth: Makati City
Gender: F
Age: 18
Nationality: Filipino
Religion: Roman Catholic
Father's Name: Gilbert C. Legaspi
Occupation: OFW
Mother's Name: Maria Angelica A. Legaspi
Occupation: Housewife
Educational Background:
Secondary
Centro Escolar University (2017-2019)
Paco Catholic School (2013-2017)

Primary
Paco Catholic School (2007-2013)

Name: Guiao, Nicholas Andrei F.

Date of Birth: June 13, 2000
 69

Place of Birth: Makati City

Gender: M
Age: 18
Nationality: Filipino
Religion: Roman Catholic
Father's Name: Ariel F Guiao (Deceased)
Occupation: N/A
Mother's Name: Eleonor Guiao
Occupation: Secretary
Educational Background:
Secondary
Centro Escolar University (2017-2019)
Haven Montessori (2013-2017)

Primary
Haven Montessori (2007-2013)

Name: Lau, William D.

Date of Birth: May 27 , 2002
Place of Birth: Manila , Philippines
Gender: M
Age: 16 years old
Nationality: Chinese-Filipino
Religion: Christian
Father’s Name: Shui Jing Lau
Occupation: Tour Guide
Mother’s Name: Liberty T. Dimaano
Occupation: Housewife
Educational Background:
Secondary
Centro Escolar University (2017-2019)
 70

St. Mary's Academy of Sta. Ana, Manila (2013-2017)

Primary
Holy Family Parochial School (2007-2013)

Name: Marquez, Gello Angelo V.

Date of Birth: December 31 , 2000
Place of Birth: Manila , Philippines
Gender: M
Age: 17
Nationality: Filipino
Religion: Roman Catholic
Father’s Name: Gregorio L. Marquez
Occupation: Zone Specialist (Maynilad)
Mother’s Name: Sheila May V. Marquez
Occupation: Housewife
Educational Background:
Secondary
Centro Escolar University (2017-2019)
Paco Catholic School (2013-2017)

Primary
Paco Catholic School (2007-2013)

Name: Reuta, Jirk Zydell B.

Date of Birth: March 28 , 2000
Place of Birth: Makati City, Philippines
Gender: M
Age: 18
Nationality: Filipino
Religion: Roman Catholic
 71

Father’s Name: Joseph M. Reuta

Occupation: N/A
Mother’s Name: Jemellee B. Reuta
Occupation: Vendor
Educational Background:
Secondary
Centro Escolar University (2017-2019)
San Isidro National High School (2013-2017)

Primary
Southville 1 Niugan Cabuyao Laguna School (2007-2013)