FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
PITALIS FLOUR
A Business Plan Paper
Presented to the
Faculty of Business Administration Department
Institute of Accounts, Business and Finance
Far Eastern University – Manila
In Partial Fulfillment
of the Requirements for the Degree
Bachelor of Science in Business Administration
By
JOSELLE M. CUETO
DONG HAN
THEA ALAYZZA C. HERNANDEZ
ANA GIELYN M. LORENA
THERESA ANDREA M. MACAWILE
JOHN ANGELO D. PURA
MARY JOYCE M. RICAFORT
NICA ELAINE A. SUSTENTO
2 December 2018
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
P a g e | i
RECOMMENDATION AND APPROVAL SHEET
This undergraduate business plan paper entitled:PITALIS FLOUR,
prepared and submitted by Cueto, Han, Hernandez, Lorena, Macawile, Pura,
Ricafort and Sustento, in partial fulfillment of the requirements for the degree of
Bachelor of Science in Business Administration, has been examined and is
recommended for acceptance and approval for oral defense.
DR. DANTE QUINES
Adviser
BUSINESS PLAN REVIEW PANEL
Approved by the Committee on Oral Defense with a grade of ________.
FIRST NAME MI. LAST NAME
FIRST NAME MI. LAST NAME
Panel Member
Panel Member
FIRST NAME MI. LAST NAME
Chairman
Accepted and approved in partial fulfilment of the requirements for the
degree of Bachelor of Science in Business Administration.
FIRST NAME MI. LAST NAME
Dean
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
PITALIS FLOUR
ACKNOWLEDGEMENT
The proponents would like to express their profound gratitude to the
following people for their invaluable contribution that helped in the completion of
this paper.
Mr. First Name MI. Last Name, for the important recommendations and
constructive evaluation that gave this plan focus and directions;
Dr. Dante Quines, feasibility adviser, for the genuine support, time, effort,
and all the vital suggestions that completely guided the proponents throughout
the study;
All the respondents who;
The Lord Almighty, for His Divine Love and Mercy that has kept the
proponents in good health and determination to accomplish their study.
The Proponents
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
PITALIS FLOUR
DEDICATION
We would like to dedicate this research to all who supported and believed
in our idea of making this possible. To our family, friends, and professors who
stood beside us from Business Plan 1 up to this Business Plan 2.
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
PITALIS FLOUR
EXECUTIVE SUMMARY
Flour has been one of the basic components in terms of baking. As a
basic unit of ingredient, PITAYA EASTERN CORPORATION, has come up to
supply a specific need that can reach out health-conscious type of market and it
was named “Pitalis flour”, Pitalis as a local name for the dragon fruit in the Ilocos
region, has been started for the reason of new machineries that developed the
supply of dragon fruit and bloom the production in the northern part of manila.
Mass plantation cultivated around the upper province of manila that gives rise to
the company’s idea of reusing the waste to provide sustenance trait that can
benefit the provincial suppliers and the market. The presence of advance
technology produces numerous amount of this seasonal type of fruit.
PEC is a start-up enterprise established as a closed corporation located at
.G Dela Cruz MGM Compound Brgy. Veinte Reales Valenzuela City. It has been
strategically chosen by the company for the fast transaction and deliveries of the
waste materials from the Northern Part of Manila. It is purposely restricted within
a small circle of trusted individuals.
In a business to business approach, PEC’s marketing projects are to
directly market the pitalis flour on individual offices of the main target market.
These are the specialty bakeries of Conti’s and Bread Talk. Through
concessionaire activities, seminars regarding innovation and levelling up flour
industry. Included in this aspect are the aim to promote through social media to
raise the awareness of indigenous material used, invitations for business
enterprises for compositional seminars, and impress through the native crops
capability to offer another edible substance with its junk peels.
PEC’s financial aspect will contain all of the company’s financial position in
the market to further reflect to its marginal profit and loss. Also, the overall
assumption of the expense for the company’s agenda from the beginning of its
operation up to the yearly report of cash flows, balance sheet and income
statement.
The sustainable community are the local farmers of the Ilocos Norte
region group namely KASACOOP, for further assistance they will contribute for
collecting the waste peels of the dragon fruit from the factories of wine and
others. The company will support through conducting workshops with efficient
use of organic materials of planting, advance technology usage, and provision for
latest and sustainable growing techniques with the assurance of quality and
mass production.
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
PITALIS FLOUR
TABLE OF CONTENTS
RECOMMENDATION AND APPROVAL SHEET ………………………………………………………. I
ACKNOWLEDGEMENT …………………………………………………………………………………… II
DEDICATION ……………………………………………………………………………………………….. III
EXECUTIVE SUMMARY ………………………………………………………………………………….. IV
TABLE OF CONTENTS …………………………………………………………………………………….. V
LIST OF TABLES …………………………………………………………………………………………… VII
LIST OF FIGURES ………………………………………………………………………………………… VIII
CHAPTER 1: INTRODUCTION ……………………………………………………….………………….. 1
FORM OF BUSINESS ……………………………………………………………………………………………….. 1
COMPANY PROFILE AND LOGO …………………………………………………………………………………… 1
INDUSTRY …………………………………………………………………………………………………………… 2
PRODUCT HIGHLIGHTS ……………………………………………………………………………………………. 2
CHAPTER 2: MARKET STUDY ……………………………………………………….………………….. 3
MARKET ANALYSIS ………………………………………………………………………………………………… 3
Historical Demand …………………………………………………………………………………………. 3
Projected Demand …………………………………………………………………………………………. 4
Historical Supply ……………………………………………………………………………………………. 5
Projected Supply ……………………………………………………………………………………………. 5
Demand and Supply Gap Analysis ……………………………………………………………………. 6
PROJECTED SALES ………………………………………………………………………………………………….. 6
SWOT ANALYSIS ………………………………………………………………………………………………….. 7
MARKETING MIX ………………………………………………………………………………………………….. 8
COMPETITORS ANALYSIS ………………………………………………………………………………………….. 9
MARKET RESEARCH ……………………………………………………………………………………………… 11
CHAPTER 3: OPERATIONS AND PRODUCTIONS STUDY …………………………..…………… 14
KEY BUSINESS OPERATIONS …………………………………………………………………………………….. 14
PRODUCT CONCEPT ……………………………………………………………………………………………… 14
PRODUCTION REQUIREMENTS AND PROCESSES ……………………………………………………………… 15
PACKAGING ……………………………………………………………………………………………………….. 19
QUALITY CONTROL AND SAFETY MEASURES …………………………………………………………………. 19
CHAPTER 4: MANAGEMENT STUDY ………………………………………………………………… 21
BUSINESS MODEL ……………………………………………………………………………………………….. 21
ORGANIZATIONAL STRUCTURE …………………………………………………………………………………. 22
FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance
Business Administration Department
MANAGEMENT AND PERSONNEL ………………………………………………………………………………. 22
CHAPTER 5: FINANCIAL STUDY ………………………………………………………………………. 25
CAPITAL REQUIREMENTS ……………………………………………………………………………………….. 25
STATEMENT OF FINANCIAL POSITION ………………………………………………………………………….. 25
STATEMENT OF COMPREHENSIVE INCOME ……………………………………………………………………. 26
STATEMENT OF CHANGES IN EQUITY ………………………………………………………………………….. 28
STATEMENT OF CASH FLOWS …………………………………………………………………………………… 29
FINANCIAL RATIOS AND ANALYSIS ……………………………………………………………………………… 31