Professional Documents
Culture Documents
Sweety Treats
Sweety Treats
Submitted to
Submitted by
Jaren M. Navarro
ABM 12 – B
February 1, 2018
Bacolod City
SIMULATION ACTIVITY 1
Product idea
The group of Sweety Treats decided to sell a product that are mainly sweets for it would
serve as a snacks for the students during vacant and it would satisfy the wants of the students in
terms of the quality and the affordability of the product.
Brownies is the main product of the groups' small business. Brownies is made of dark
chocolate, cocoa powder, baking powder and flour, eggs sugar and many more. It has also nuts
placed on top which made it worth to buy. Our brownies will provide a good choice for the
customer to buy because of its chocolatey flavor plus the nuts added on it. Butter scotch is like
brownies too. But the flavor and the placement of nut differ.
Butter scotch is made of cup butter, baking powder and flour, eggs, sugar, nuts and many
more. The nuts were mixed with the ingredients of butter scotch wherein it can be found in and
on the butter scotch. If the customers don't like chocolate flavored foods, butter scotch is the best
choice for them.
Graham balls are uniquely made as it is not like common graham balls that were
sandwiched with marshmallow inside the molded graham. Our Graham balls are molded into a
ball-like shape but flat surface at the bottom. It does not have marshmallow inside but instead it
is coated with melted milk or chocolate which made it a unique recipe that is satisfying to eat.
According to an article, food is a basic necessity. The food industry will always remain in
high demand because of its genre. Like every other country, the food industry has flourished
very well in the Philippines. Food retailing industry involves a wide array of sellers from the
sidewalk vendors, wet and dry markets, sari-sari stores, groceries, supermarkets, hypermarts,
warehouse and convenience stores. According to the Family Income and Expenditure Survey
(FIES) of the National Statistics Office (NSO), household spending on food increased by 26
percent from 2012 to 2014. Personal consumption expenditure (PCE) on food in2012 reached
about PHP 4.8 billion from PHP 401.7 billion in 2008.
Food manufacturing industries have a higher employment, income and output multipliers.
It also promotes stronger inter-industry and inter-sectoral linkages, firm productivity,
technological innovation and development. The food manufacturing industry has been identified
by the Philippine government as a priority sector for attracting foreign investment under special
economic zones. Based on the data gathered, the students decided to implement a business,
specifically the bakery products from the food industry with an average annual growth rate of
16.51%. The food industry sector also contributes around 45.48% in the annual GDP.
Average Contribution to GDP
For the year 2014, the Merchandising sector’s contributions to the economy
(45.62%) comprised nearly half of the annual GDP. The following year it was reduced to
44.05% but was still considered the highest contributor to the GDP. Eventually, the GDP
for the year 2016 proved to be the Merchandising sectors highest contribution in three
years at 46.77%. The sector’s average contribution to the GDP for three years is 45.48%.
The Manufacturing sector together with the Merchandising industry are always
considered as the biggest industrial sector in the Philippines and are also responsible for
almost half of the country’s annual Gross Domestic Product. From an annual growth rate
of 5.7% in the year 2014, it grew to 7.1% in 2015 and 7.7% in 2016. Basing from these
data, the average growth rate would be 16.51%.
Geographic Scope
The business will be operated for a given limited time. Sweety Treats will be selling its
products in University of St. Lasalle - Bacolod City to the whole university body including
teachers, staffs, college students but their main scope are the Integrated and Liceo De La Salle
students.
Location Description
Sweety Treats will be selling their products inside the campus of University of St. Lasalle
Bacolod. This University is situated along La Salle Avenue, Bacolod 6100, Negros Occidental.
You can found Sweety Treats stall inside the said University, at the ground floor of Miguel
Building which is called and known as "the Promenade".
In addition, since the group is consists of seven members, each of them can also sell their
products to their respective communities and even to their family and relatives. There will be 7
locations for their additional market since one of their member’s dorm is here in Bacolod City
and goes home every weekend and two members lived in the same city. The locations would be
the following: Talisay City, Tangub, Eroreco, Manapla, Murcia, 13th St. Dormitory and La
Carlota City.
Population of Target Market in chosen Location
Our general target market are Integrated and Liceo students which has a population of 5,
873 students. 2, 527 are consisted of integrated students of University of St. Lasalle and 3,346
are from Liceo de La Salle students.
The specific target market that the group of Sweety Treats wants to have is 50 students.
So in order to get the percentage of 50 students from 5873 of the population, so we divided 50 by
5873 which is equals to 0.85%. The group specific target market percentage for brownies and
butterscotch is 0.85%.
While the specific target market that the group wants for their product which is the
graham balls is 100 students. So in order to get the percentage of 100 students, we divided 100
by 5873 which is equals to 1.70%.
Period Scope
The Sweety Treats will operate its business on a given period of time of eight to ten
weeks. The operation will start as soon as the papers are complete and correct. After which, the
group will wait for the "Go" signal of the teacher to start the business operation. This will mostly
end on last week of February 2018 or first week of March 2018. The time that will be used for
selling the products inside the University of St. Lasalle will be during school days from Monday
to Friday, only during vacant or available time of the group. Moreover, the group can still sell
their products during weekends or holidays in their respective communities.
Functional Scope
Operational Aspect
The products of Sweety Treats will serve as a snack for the students during their
vacant time. The business location is very convenient and accessible for all students,
most especially the Liceo students for it is near their respective rooms. We will be having
our stall and will be operated during school hours which give us opportunity to sell our
products effectively wherein students could pass by to buy some of our displayed
products. The business will also be operated through selling the products all around the
campus and our respective communities. In addition, it is not only convenient for
students but considering also the quality and the affordability of product that will surely
suit to every student’s budget. Moreover, through effective communication, we will
encourage students to buy the products we offered. This means that the group must know
how to properly advertise, convince and assist the students to gain profitable customers.
This would help our business to establish a good name.
Marketing Aspect
One of the best and common ways to encourage students to buy the product is by
word of mouth. This means that the group must know how to properly advertise,
convince, and assist the students by their products offered. Through this, customers will
become loyal to your product and convince also other people to purchase your product.
Technical Aspect
The three products will be bought from a potential supplier and sell it at an
average amount. In terms of the technical usage, refrigerator will be used to preserve the
product especially the graham ball if ever it is not fully sold out to the target market.
Financial Aspect
Since the business is focusing more on generating and controlling sales money of
their product, so they must practice internal control by having these people:
Methodology
The group conducts an interview towards their supplier about their experiences
and challenges they encountered as they went along in their business.
The group gathers their data from ABM textbooks and Internet to be use as
references for statistics, methods, models, and concept.
The group acquires their source of Family, Income and Expenditure Survey and
National Statistics Office from the Philippine Statistics Authority to determine the
percentage of food increase in household spending. As for the average percentage of
Gross Domestic Product and Growth Rate, the group based their data from the World
Integrated Trade Solution.
The group gathered the student population data from the Integrated School and
Liceo office. According to the data, the total population of Liceo and IS students are
5,076. The information will help the group to determine the number of possible
customers and to provide what are their needs and wants.
Since the group is composed of seven (7) members, Group Entrepreneurship is the
business model. These individuals worked together in order to form and start the proposed
business. Furthermore, the group chose to use the merchandising model type since they will just
order the products from a supplier. Their mission is to provide the customers scrumptious and
affordable sweet treats/pastries option for them. Since the group is one of the producers of food
products, they want to give their customers the satisfaction when they buy their products. In
order to achieve its mission, their priority is the customers. If a customer will complain about
their products, they will immediately fix it.
Methods of Analysis Used
Marketing Analysis
Porter's five forces is a model that identifies and analyzes five competitive
forces that shape every industry, and help determine an industry's weaknesses and
strengths. The group used the Porter's five forces in order to understand the forces
in the environment or industry that can affect our profitability and will be able to
adjust our strategy accordingly. For instant, we could take fair advantage of a
strong position or improve a weak one, and avoid taking wrong steps in future.
The group used the PESTEL Analysis in order to determine the various
factors which are the political, economic, sociological, technical, environment,
and legal that may affect the growth of the business. It is a framework we used in
order to analyze and monitor the external marketing environment factors that have
an impact in an organization. The result of which is used to identify threats and
weaknesses which is used in a SWOT Analysis.
Financial Analysis
Financial Analysis is used to determine the business' expected starting capital and
profit that will be generated. The group used this to evaluate businesses, budgets and
other finance-related entities in order to determine our performance and suitability.
Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid
or profitable enough to warrant a monetary investment. This would focus on the income
statement, balance sheet and cash flow statement.
SWOT Analysis
SWOT Analysis is a useful technique for understanding for the business strengths
and weaknesses, and for identifying both the opportunities open to the business and the
threats it faces.
Opportunities come in all different sizes, from hardly noticeable ones, to life-
changing ones. The opportunities of the business are emerge of technologies that could
use in promoting the business, and growing number of customers opting to eat sweets
during vacant or after lunch breaks.
Threats are anything that could cause damage to the organization, venture, or
product. The business’ threats are having a lot of competitors under the same industry
and the possible supply shortage of the products.
SIMULATION ACTIVITY 2
Subsector choice
Pastries and sweets will be the subsector choice of the business. Pastry is a combination
of flour, fat and water which can be used as a base or can be wrapped for other foods. It may also
be sweet, baked and it is often filled with fruit or cream.
1.3644 %
= x 100%
3
= 0.4548 x 100%
= 45.48%
7.1−5.7 7.7−7.1
= + /2 x 100%
5.7 7.1
0.2456+0.0845
= x 100%
2
= 0.1651 x 100%
= 16.51%
Average growth rate: 16.51%
Location choice
The location wherein the business will be situated is at the ground floor of the Miguel
Building at the University of St. Lasalle.
Our general target market are Integrated and Liceo students which has a population of 5,
873 students. 2, 527 are consisted of integrated students of University of St. Lasalle and and
3,346 are from Liceo de La Salle students.
Male
There will be a total of 1,497 Integrated School male students and, 1,030 male
students from the LICEO community.
Female
There will be a total of 1,316 Integrated School female students and 2,030 male
students from the LICEO community.
Age range
The age range of our customers would be around 6 until 19 years old since our
target market are mainly students from the LICEO community and additional buyers
from the Integrated School students.
SIMULATION ACTIVITY 3
Mission Statement
We are a business that would be known for its excellence both in product and service. We
would satisfy our customers’ taste buds by providing them with quality and affordable products.
Our employees would be given a safe and harmonious environment wherein they can work freely
and peacefully. We consider ourselves as industrial partners who operate the business and we
expect to receive a modest amount of profit that can be split evenly among us. Our community
encompasses the whole USLS campus and we would help in contributing snacks to the students
of Miguel building.
Management Objectives
The Sweety Treats aims to run the enterprise smoothly. The students want to have an
optimum utilization of resources such as proper use of materials and money that will help the
business to earn sufficient profits to satisfy the proprietor and the industrial partners. Moreover,
the business also wants to have a proper planning, organization and direction that will lead to
growth and development. It will help the business in the profitable expansion and provide a sense
of security among the partners. It also aims to ensure the regular supply of goods that will keep
the prices within the permissible limits. The enterprise also wants to keep its ears and eyes to the
changing circumstances to minimize the elements of risks. Lastly, they want to improve the
performance of the business in every aspect.
Enterprise type
It was founded by Ms. Diane Maria A. Gosiaoco who is the sole owner of the
business. Certainly, the business would not work if there are no managers, bookkeeper
and other members of the business that can help the business to function well. The
following are; Mr. Jaren M. Navarro and Ms. Mary Rose Cadungog are assigned to the
Operational Team; Ms. Dessa Jill Y. Jovelo and Ms. Joille Anne Blancaflor are the
Marketing Team; and Ms. Nicole Ann D. Gomez and Ms. Frendee Lara R. Laudato are
the Financial/Accounting Team.
Business Registration
In order to open a business, the owner of the business must comply with all the
requirements by filling up the documents, do the processing method and wait for the
approval of institutions. Once it is approved, the business is now able to operate and it is
considered as an official and legal venture. The following are the requirements needed to
be submitted under sole proprietorship.*files attached at the end of this section
Marketing Objectives
Sweety Treats marketing objective is to sell not just an ordinary dessert but a soft, chewy
and delicious product that will suffice the sweet tooth of the customers at a very reasonable price
compared to other businesses. The business also wants to place their products in the Miguel
Building Ground floor wherein it can have an easy access to the target market. The students also
want to sell out the product within 5 days of production period.
Moreover, the Sweety Treats also want to increase the brand recognition of the products
within 2 weeks through the use of word of mouth and by social networking sites such as
Facebook and Instagram. Sweety Treats also wants to offer quality products and a superior
customer service that will result to a higher customer satisfaction. Most importantly, become one
of the top selling desserts not just in USLS but to whole province as well.
Product Unit Cost per Selling Net Sales Net Sales Net Sales
Name Unit Price per per day per week For 4
Unit (5) weeks
Brownies 30 ₱7.00 ₱10.00 ₱300.00 ₱1, 500.00 ₱6,000.00
Product Unit Cost per Selling Cost Profit Profit Profit for
Name Unit Price per -plus per day per week 4 weeks
unit pricing
Brownie 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00 ₱1,800.00
s
Butter 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00 ₱1,800.00
Scotch
Graham 100 ₱3.00 ₱4.00 ₱1.00 ₱100.00 ₱500.00 ₱2,000.00
Balls
Total ₱280.00 ₱1,400.0 ₱5,600.00
Profit 0
Operational Objectives
The group states their short term goals in order to achieve and bring them closer to attain
their strategic goals. Operational objectives differ from strategic objectives in that they focus
more on “how” than “what.” This section shows how the business’ operational objective should
be attainable and specific so that they can provide a clear guidance for daily functioning of
certain operations.
Supplier-partner
The group chooses a potential supplier to be the partner of their business so that both
the group and the supplier are mutually benefitted. This focuses more on the relationship
between the group and its suppliers and what are the traits that they must have in order to have
good and lasting relationship between them.
Trust- Trust is a laying foundation for strong supplier partner relationship. It can
also improve the chances of successful relationship between the group and the
supplier by being truthful and reliable.
Respect- A mutual appreciation and willingness to consider the needs and
opinions of the others in order to maximize the interests of both.
Reliability – The supplier must be reliable to prove that they can be trusted and
that they will not betray the partnering business.
Fairness – Fairness is needed so that the relationships will not break down. To
also have equal splitting of the negotiation to avoid one party or the other feels
they are not getting a fair part of the bargain.
Communication – It is an effective, open two-way communication is at the heart
of any strong business relationship in order to talk and learn enough about
building mutually beneficial arrangements.
Product Cost
The group will be a merchandising business so this section will only shows its
breakdown of its products’ cost per unit, mark up price, its profit per day, per week and for 8
weeks.
Product Unit Purchase Mark Selling Profi Profit Profit Profit for
Name d Product Up Price t per per day per week 4 weeks
Cost per per unit
Unit unit
Brownies 30 ₱7.00 ₱3.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00 ₱1,800.00
Butter 30 ₱7.00 ₱3.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00 ₱1,800.00
Scotch
Graham 100 ₱3.00 ₱1.00 ₱5.00 ₱1.00 ₱100.00 ₱500.00 ₱2,000.00
Balls
Total ₱500.00 ₱1,400.0 ₱5,600.00
Profit 0
Skills in service are required in order to efficiently sell the products that the group have.
It also means that each representative is professional, and can communicate effectively every
time they face their potential customers.
One must be fluent and influential in communicating so that many customers will
be attracted to buy their products.
Self- control must be needed so that the members of the group know how to
handle their customers.
They must also have positive attitude and assertiveness in dealing their customers
in a proper manner.
They must have listening skills to know exactly the needs of their potential
customers are.
They must be good in decision making to avoid operation mistakes.
They must be good in math to ensure the accuracy of giving change to the
customers.
Cost of supplies
Since the group is more on merchandising, the supplies that the group will buy are only
for packaging of products and Mason Jars for the placement of products specifically the
Brownies and Butter Scotch.
The group won’t have any cost of service for it is a self-owned business.
Financial Objectives
Businesses must have financial objectives in order to make sure of smooth flow of cash.
To sustain its operation, money is an important factor. The business’s capital, income and profit
are important to the survival and measurement of a business’s success. Sweety Treats must
implement these financial objectives to ensure the proper management of money and the
business’s sustainability:
Oversight and recording of day-to-day operations correctly. The financial team will
ensure proper management approvals of transactions, contracts with suppliers, marketing,
fulfillment and record keeping among other administrative functions. They will
specifically oversee the inflow and outflow of the business’s money.
Increasing revenue. Revenue growth comes from boosting sales and marketing
activities, and is solely concerned with increasing earnings.
Profit objective. The group’s desired profits after 4 weeks for the 3 products are the
following: ₱1,800 for brownies, ₱1,800 for butter scotch and ₱2,000 for graham balls.
This will only be achieved by effective marketing and good customer service.
Check and balance. Audits should be commonplace in your business. After a week of
operation, there should be a scheduled audit of your financial transactions (weekly
checking). The financial team must make sure that the number of sales matched to the
cash collected by the business.
Brownies in a week
Operating Expenses
Brownies and Butter Scotch for second week (February 12 – 16, 2018)
Operating Expenses
Brownies and Butter Scotch for third week (February 19 – 23, 2018)
Operating Expenses
Brownies and Butter Scotch for fourth week (February 26 – March 2, 2018)
Operating Expenses
Operating Expenses –
× 4 weeks
____________
Internal Objectives
The group's internal objectives look within a company to increase its productivity,
efficiency, quality standards and overall operational effectiveness. The group's internally focused
objectives are to reduce the costs associated with production mistakes and to increase employee
satisfaction and loyalty. This also includes interpersonal relationships between our subordinates
in order for us to do our jobs effectively, and to help each other identify with the company's
mission and goals to keep the relationship long-term.
Learnings
Building a successful business is typically done by trial and error, with many
hurdles along the way. The group learned how to invest relationships and to start a
business venture with clear mission and vision statements that would help us reach our
goals and objectives. We also learned how to take and face the business risks, and aspire
to become successful.
Ethics is concerned on individual’s moral judgments about right or wrong. The following are
ethical conduct in our workplace.
Employees adhere to the company's code of conduct, which reflects the company's values.
Employees do not discriminate against other people based on race, religion, gender, sexual
orientation, disability, age or national origin.
Employees should respect their organization and coworkers, and avoid padding expense accounts
and using excessive sick time. Employees should treat other people and company property with
respect to ensure the reputation of their company remains intact. People who act with integrity
create an atmosphere of fairness and equality.
Anytime an action might result in anxiety, employees need to seek guidance before making a
decision. Employees should also not defer a decision without careful consideration. The
decisions taken within an organization may be made by individuals or groups, but whoever
makes them will be influenced by the culture of the company. The decision to behave ethically is
a moral one and we must decide what we think is the right course of action.
Customer Objectives
Customers are one of the essential aspect that a business must possess for it to be
successful. In order for the business to generate more buyers and be able to attain loyal
customers, Sweety Treats must implement the following objectives:
Introduce our product to the market. As the business starts its operation together will
all the students at the ground floor of Miguel Building, the group will promote the
product and approach potential customers as friendly and accommodating as needed.
Achieve and maintain outstanding customer service. We need to consider our
customers as the most important aspect in the business. In order for them to like our
product, the members must have good communication skills to get their attention.
Increase customer retention. The business aims to move upward and in order to achieve
that; the business needs to have loyal customers. We will serve our existing customers
better through our service and product every time they visit our booth. Having good
customer service will lead us to customer loyalty.
Product Improvement
Sweety Treats will be open for comments, feedback and suggestions from the
customers to be able to improve the products and services offered. These suggestions will
give the business ideas of what does that customers want to eat and the services that they
desire to experience. Both negative and positive comments from the customers will be
entertained by the business since all of those will serve as basis for improvement. Sweety
Treats is a buy and sell type of business and in order to improve the product, we will
make its appearance better by making our own packing and label. We will promote our
product by word of mouth and also through online. Through that, the business will be
able to attract more customers and more people will be aware of our business
Customer satisfaction
The business aims to satisfy the customers both in price and quality aspect. Our
products will be sold in a student-friendly price that the customers will be able to buy
from their daily allowance. Sweety Treats also ensures that the products being sold have
a very pleasant taste and appearance. The business wants the customers to think that our
products are not sold in a costly price, but instead, it is worth spending.
SIMULATION ACTIVITY 4
Macroenvironment
The PESTEL Analysis discusses about the external environmental factors that influence
the business, decision in 6 areas; Political, Economical, Sociological, Technological,
Environmental, and Legal factors. The analysis is used to understand the business, strength as
well as potential threats that the business will encounter in the future.
Political
Political factors often have an impact on organizations and how they do the business
The group’s business has only limited budget and only relies on their initial
capital and the profits they receive after selling their product.
Even though the TRAIN Law was implemented, the prices of the products sold by
the business remains affordable.
Economical
The business faces a lot of competition for there are other 84 group businesses
that are expected to sell inside the school campus competing for the same
customers. The group will also compete with other canteens, food courts and
cafés inside the school area (e.g. Stingers, E-Café, I-Café and etc.).
The business offers varieties of sweets that the students could choose from.
Sociological
This factor discusses about the customer population and its shared beliefs and
attitudes, as well as to understand the interest of the customers.
The “word of mouth” is a great advertisement especially by students who are the
potential customers of the business.
Students are expected to eat their snacks and lunches during their vacant or recess
time.
Customers usually eat either inside or outside the school premises, depending on
the availability of the canteens and food court areas if it is crowded with students.
The interests of some students do not align with our product.
Technological
The foods that the business will be selling are already well-refrigerated
beforehand.
The group will deliver the products from home to school by commuting through
jeepney and/or service cars.
The presence of social media can help the business advertise their products.
Environmental
This factor ensures safety to the products sell as well as the safety of their customers.
The group ensures that the products they sell are clean to guarantee the
customers’ health and safety.
The group make sure that the location of their business are always neat and clean
to avoid contaminations in their products especially that the group is in a food
business.
The weather can affect the operation of the business and the decisions of the
customer.
Legal
Legal factors are external factors which refer to how the law affects the way
businesses operate and customers behave.
The business follows the “Food Safety Act of 2013” in order to provide clean and
uncontaminated foods that protect the consumers’ health.
The business also follows good hygienic practices to ensure safety and suitability
of products that the business will be selling.
The business also follows the food law to ensure food safety of any stage such as
production, distribution and preparation of the foods to the consumers.
The business has not yet fully complied with the proper requirements to run the
business.
Even The business’ The “word of The foods that The products The
though the products are mouth” is a the business they sell are business
Opportunities TRAIN unique and great will be selling clean to follows the
Law was affordable. advertisement. are already guarantee the “Food
implemente The business well- customers’ Safety Act
d, the prices offers Students are refrigerated health and of 2013”.
of the varieties of expected to beforehand. safety.
products sweets that take their The
sold by the the students breaks and The presence The location of business
business lunches during of social their business is also
could choose
their vacant or media can help always neat and follows
remains from.
recess time. the business clean to avoid good
affordable.
advertise their contaminations hygienic
Customers products. in their practices
usually eat products.
either inside The
or outside the business
school follows the
premises. food law to
ensure
food safety
of any
stage.
Limited budget The business The interests Delivery of The products The
and only relies faces a lot of of some products will can be easily business
Threats to their initial competition with students do be from home contaminated has not
capital and the other groups’ not align to school by . yet fully
profits they businesses. with our commuting The weather complied
receive after product. through can affect the with the
selling their The group will jeepney and/or operation of proper
product. also compete service cars. the business requirem
with other and the ents to
canteens, food decisions of run the
courts and cafés the customer. business.
inside the school
area.
Opportunities and Threats
Microenvironment
This analysis measure the competitiveness of the market deriving its attractiveness. These
include competitors, new entrants, suppliers, buyers, and substitutes.
Suppliers
The suppliers of the business are easy to contact through the use of
technology. The ingredients and materials in making and packaging the
products are also easy to find and are available in local stores.
The business has only two reliable suppliers.
The products that the business will sell are limited to its capacity to avoid
surplus or excess supply of the products.
Rival Firms
The business has a lot of potential competitors. There are some businesses
that have the same products like the Sweety Treats.
Although some competitors may have the same products like the Sweety
Treats, the business’ products are unique in its own way and that can be
seen as an advantage to the said business.
Buyers
Entrants
Entry barriers are high which can be the disadvantage of the business
because there are increasing amount of new business with the same types
of business like the Sweety Treats.
The Sweety Treats is just a starting business, which means that the
business hasn’t established a name yet.
Substitutes
There are products from other competitors that are quite similar to what
Sweety Treats have. The advantage is of the business is that their products
are unique and had its own tastes that differ to any other products.
SWOT Analysis
SWOT Analysis is a useful technique for understanding the business strengths and
weaknesses, as well as identifying both the opportunities open to the business and the threats it
faces.
Strength Weaknesses
Location: The location of the business is inside the Lack of Time: Time is one of the weaknesses because
University of St. La Salle campus. It is a best place to the business group can only sell their products during
have easy access to potential customers because it is their limited vacant time that can greatly affect the
surrounded by students in different levels such as IS business for they can only sell and profit a little for the
Students, SHS Students, and College Students. short limit of time.
Opportunities Threats
Large population: The school is dominated by IS Competition: The group anticipated to have a lot of
and SHS Students and their total population for the competitors because it is to be expected that there are
second semester for the year 2017-2018 are 5,873. seven groups in every one section. Overall, there are
This would also be a great opportunity to sell their 12 ABM sections, which mean that there are 84 groups
products during their break time. The business has its of businesses that will compete for customers.
expected target market percentage derived from the
population in order for them to gain profit.
Strategies
This section will focus to the business’ overall plan for reaching people, to enhance our
products and also to turn people into potential customers of the product that the business
provides. The strategies that the business will use involve marketing, time management and
product development strategies.
The group will enhance all the things that the business lacking including its weaknesses
and threats as well as further strengthens all the advantages that the business have.
The group will take advantage of the location and the population of their possible
customers to established name and reputation by advertising their products.
The group members will be efficient and conscious of their time in order to reach their
quota of selling their products during their limited vacant period.
Technologies will be used at their advantage to promote their products as well with the
help of social media.
The business’ products must be further developed and open to new changes to be more
advantageous to other competitors.
Product Development
It is a strategy in which a group will make improvements of their products to offer
new interests and to show their unique products are different to other competitors.
The business offers product that are unique and affordable. The graham balls sell
by the group are not an ordinary graham balls that can be bought everywhere.
They are molded into a ball-like shape but flat surface at the bottom, and instead
of marshmallow inside the graham balls that are commonly made, they are
covered with melted milk or chocolate, coated around the graham balls.
The logo of Sweety Treats is printed on stickers and then they are placed in front
of the product wrappings so that the products will be recognized by customers and
also to established business’ name and reputation.
Market Development
The group will do promotions through advertising with the use of “word of
mouth” because it is a fastest way to advertise products from one place to another.
Social media is used as a tool in order for our products to be recognized and to
capture greater customer base.
Flyers are used by the proponents to intend wider distribution of advertising the
products and typically posted or distributed in a public place, handed out to
individuals or sent through the mail.
Market Penetration
Loyalty program - The group will make sure that customers who are loyal to their
products will not be left out and they will entertain all their suggestions to help
improve their business as well as their products.
Adjustments of Price - The products that will be sold by the group must be suited
to their target consumers which are the students. By adjusting the prices, the
business hopes to gather more students to buy their products and also to make it
more appealing to consumers compare to other competitors.
SIMULATION ACTIVITY 5
Single Proprietorship
The one who stands as an owner of the small business named Sweety Treats is Diane
Maria Gosiaoco. She had potential investors who helped with the financial aspects of the
business. Diane as an owner is the one who manage and responsible to all business transactions.
She has the full control and power of making decisions for the business.
Organizational Chart
Marketing Team
Since the Sweety Treats is located inside the school campus and considering that there
are also a lot of competitors within it, the business decided to have a what you called Marketing
Team. The people who are under this team are Dessa Jill Jovelo and Joille Blancaflor. These two
had the potential to do sales talking about our products to the administrators, staffs, professors
and most especially the students in order to gain more customers and high sales.
Operational Team
Under the operational team are Jaren Navarro and Mary Rose Cadungog. These two helps
the owner of the business who is Diane with the everyday operation of the business. They will be
the one who will monitor the supplies of their products which are the brownies, butter scotch and
graham balls. Jaren and Mary Rose will also be the one to identify if the business reaches the
projected sales value and do the improvement in the business operation.
Financial Team
Financial Team are the ones who manipulate the sales money of the business. The person
who are in charge to this are Nicole Ann Gomez and Frendee Lara Laudato. They will not just
only keep the sales money of the business but also they make sure if the number of products sold
is equivalent to the sales money received. In addition, Nicole Ann and Frendee will make a
financial statement in order for the owner to know the operation of the business.
Since the business does not have enough income to give out a daily salaries and wages to
all working team and considering the time allotted for operating the business is just limited for 4
weeks, so the group of Sweety Treats decided and agreed to have a 60%-40% sharing of profit
earned by the business. The 60% of the profit goes to the owner/manager of the business who is
Diane Maria A Gosiaoco, while the 40% of the profit will be equally divided to the industrial
partners.
Simulation Activity 6
Product Description
The group decided that they will name their business as Sweety Treats, Sweety because
their products are mainly composed of sweets which are brownies, butter scotch and graham
balls and Treats for it will serve as a treat for students whenever and wherever place they want.
Brownies are square, baked, chocolate dessert that comes in a variety of forms and may include
nuts, frosting, cream cheese, chocolate chips, or other ingredients. Butterscotch are traditionally
made from ingredients such as corn syrup, cream, vanilla and salt. Graham balls are crushed
grahams coated and mixed with chocolate and milk. The pictures below shows the business’s
brand logo and registered business name on our product packages.
The purchase cost for both the butterscotch and brownies is ₱7.00 while for the graham balls,
it is ₱3.00 per piece.
Price
The business group will be using the cost plus pricing method and using the said method,
the group came up with the following computations for their prices:
Purchase cost of product + cost plus pricing = Selling price
Brownies & Butterscotch: ₱7.00 + ₱3.00 = ₱10.00
Graham Balls: ₱3.00 + ₱1.00 = ₱4.00
Using the above computations, the group will be able to earn ₱3.00 for every brownies
and butterscotch and ₱1.00 for every piece of graham balls sold.
Place
The location wherein the business will be situated is the whole campus of the University
of St. La Salle for the business proponents will roam around the university grounds to sell their
products. This includes the IS; composed of the grade school and high school departments, Liceo
De La Salle Senior High School, and the College department.
Promotion
The business did not incur any expenses on promotional materials for they primarily used
social media websites like Facebook, Instagram and Twitter. The business also utilized their own
connections to promote their product through word of mouth. Below is the flyer that is being
used by the business in promoting their products through social media.
Projected Sales Volume and Value
Quality Standards
Sweety Treats assures that the customers will experience satisfying taste in their every bite.
We also made sure that our products look presentable and so we made our own logo and
packaging. The packaging of our products can be easily opened so it won’t be a hassle for our
customers. We used cellophane and wax paper to serve as wrapper for our products so it can be
easily disposed and crumpled by our customers.
Our brownies and butterscotch can still be consumed within 7 days if refrigerated and 2 days
if not. For the graham balls, the buyers are encouraged to consume the product as soon as
possible for it will melt if not refrigerated. The group ensures that the products that we sell are in
good shape and safe to consumer by our customers. Guaranteed, our customers will be satisfied
by the quality of our product - from its taste, to its appearance and also their safety.
(Our products without packaging)
(a) Brownies (b) Butterscotch
(a) Brownies
and
Receive order from supplier and pay the supplier for the products ordered.
(5 minutes)
Check if there are any defectives in the products ordered before the supplier leaves.
(8 minutes)
Check if all the materials needed for the packaging are complete.
(5 minutes)
Clean the plastic container. Make sure that it is clean and dry since it will be used
again the next day.
(7 minutes)
Collect the unused materials such as kraft paper bag and cellophane. Check if it can
be reused for the next day.
(5 minutes)
Supplier-Partner Description
The price for the brownies and butterscotch given by the supplier is ₱7.00 per piece. It is
affordable since other suppliers sell it within ₱10.00 to ₱12.00 range. The supplier does not put
additional charges for the delivery service so the price remains at ₱7.00. Sweety Treats buys the
product from the supplier wholesale and sells the product retail (in a higher price or markup).
The supplier delivers the products always on time, the night before the selling day of the product
since we still need to do packaging.
Together with the owner, the operational team will be the one who will monitor the supplies
of their products which are the brownies, butter scotch and graham balls. Jaren and Mary Rose
will also be the one to identify if the business reaches the projected sales value and do the
improvement in the business operation.
Cost of Product
Purchase of Materials
Purchase of Supplies
Check materials By the time, the Gosiaoco Diane Maria Estimate the ₱154.00
needed for products are Residence Gosiaoco plastic
packaging and start available. cellophane
packing. needed for
packaging.
Bring the products The day of the University of Diane Maria Private Car None
to the selling area. selling period. St. La Salle Gosiaoco (note: on
March 1,
there is a
transportation
expense of
₱20.00)
Sell the products. During vacant University of All members Roaming none
time. St. La Salle around the
campus and
doing sales
talk to
potential
customers.
Count the sales After selling the Solomon Mini Nicole Ann Compare ₱18,000.00
received. product for a Canteen Gomez and the actual
day. Frendee Lara sales to the
Laudato projected
sales with
the help of
calculator.
Check and list After counting Solomon Mini Nicole Ann Recording none
income generated the sales Canteen Gomez and the income
for the day. received. Frendee Lara generated
Laudato for the day
in our sales
notebook.
The proponents of Sweety Treats decided to invest a capital of ₱1,204 to buy the needed
products and materials in order to start the business operation. Each proponents distribute an
amount of ₱172.00. The breakdown of the capital invested are as follows:
Brownies 30 ₱210.00
So, the exact total amount used to buy the products and materials is ₱1,077.00 however there is a
remaining balance of ₱127.00 will serve as an emergency cash for the business.
Diane Gosiaoco observed that all teams did their responsibility according to their
assigned task. In the Marketing Team, Dessa Jill Jovelo and Joille Ann Blancaflor were able to
advertise the products effectively not only in social media but also in direct manner with the use
of word of mouth. They were also be able to turn the potential buyers into loyal customers or
“suki”. Under the Financial Team are Nicole Ann Gomez and Frendee Lara Laudato, they also
did an excellent performance in a way that they computed and recorded well the earnings and
expenses of the business. In addition, they were able to compare the projected sales from actual
sales. In the Operational Team who are Jaren Navarro and Mary Rose Cadungog, they are also
able to comply their task in a way that they monitor the availability of products in every selling
period.
SIMULATION ACTIVITY 10
Performance Report
Sweety Treats has a sales of ₱ 18,000.00 from the three products namely Brownies,
Butter Scotch and Graham Balls. The breakdown of our sales are: ₱ 5,400.00 for brownies,
₱5,400 for Butter Scotch and ₱7,200.00 for Graham Balls.
Our sales for each product has its corresponding profit. Our net income are as follows:
For Brownies we have a profit of ₱1, 620.00, same with Butter Scotch amounted ₱1,620.00, and
for graham balls ₱ 1, 800.
The proponents of Sweety Treats collaborated with one another to meet up the projected
sales that they had made. Also, they decided to divide the product to each member so that all of
the members can sell and give an equal contribution to the group. This is also our business
strategy to sell out our product to meet the expected sales.
Product Name Unit Cost per Unit Selling Price per Net Sales per Net Sales per
unit day week
Brownies 30 ₱7 ₱10 ₱300 ₱1,500.00
Product Name Unit Cost per Unit Selling Price per Net Sales per Net Sales per
unit day week
Brownies 30 ₱7 ₱10 ₱300 ₱900.00
Product Name Unit Cost per Unit Selling Price per Net Sales per Net Sales per
unit day week
Brownies 30 ₱7 ₱10 ₱300 ₱1,500.00
Product Name Unit Cost per Unit Selling Price per Net Sales per Net Sales per
unit day week
Brownies 30 ₱7 ₱10 ₱300 ₱1,500.00
Product Unit Cost per Selling Net Sales Net Sales Net Sales
Name Unit Price per per day per week For 4
Unit (5) weeks
Brownies 30 ₱7.00 ₱10.00 ₱300.00 ₱1, 500.00 ₱6,000.00
Product Unit Cost per Selling Cost -plus Profit per Profit per
Name Unit Price per pricing day week
unit
Brownies 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00
Product Unit Cost per Selling Cost -plus Profit per Profit per
Name Unit Price per pricing day week
unit
Brownies 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱270.00
Butter 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱270.00
Scotch
Graham 100 ₱3.00 ₱4.00 ₱1.00 ₱100.00 ₱300.00
Balls
Total ₱280.00 ₱840.00
Profit
Product Unit Cost per Selling Cost -plus Profit per Profit per
Name Unit Price per pricing day week
unit
Brownies 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00
Butter 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00
Scotch
Graham 100 ₱3.00 ₱4.00 ₱1.00 ₱100.00 ₱500.00
Balls
Total ₱280.00 ₱1,400.00
Profit
Fourth week (Feb.26 – Mar 2, 2018)
Product Unit Cost per Selling Cost -plus Profit per Profit per
Name Unit Price per pricing day week
unit
Brownies 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00
Butter 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00
Scotch
Graham 100 ₱3.00 ₱4.00 ₱1.00 ₱100.00 ₱500.00
Balls
Total ₱280.00 ₱1,400.00
Profit
Product Unit Cost per Selling Cost Profit Profit Profit for
Name Unit Price per -plus per day per week 4 weeks
unit pricing
Brownie 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00 ₱1,800.00
s
Butter 30 ₱7.00 ₱10.00 ₱3.00 ₱90.00 ₱450.00 ₱1,800.00
Scotch
Graham 100 ₱3.00 ₱4.00 ₱1.00 ₱100.00 ₱500.00 ₱2,000.00
Balls
Total ₱280.00 ₱1,400.0 ₱5,600.00
Profit 0
The group decided to have the same actual and planned operations since they have the
same materials used in projected plan and actual plan. These materials are the plastic cellophanes
for the packaging of the products, mason jars where the products are put during the selling period
and stickers for the brand name. The manpower used in the business operation are packaging the
product one by one with plastic cellophane and putting stickers, and selling it to the customers.
In addition, manpower also includes doing sales talk to the customers to encourage them to buy
the product.
SIMULATION ACTIVITY 11
I. Introduction
The standing owner of Sweety Treats is Diane Maria A. Gosiaoco and her industrial partners are
Joille Blancaflor, Mary Rose Cadungog, Nicole Ann Gomez, Frendee Lara Laudato, Dessa Jill
Jovelo, and Jaren Navarro. This personnel are the ones who help one another to operate the
business and to achieve the common goal it is to gain the desired profit. The merchandising
sector chosen by the group is Food Merchandising because they will be selling sweet products
namely: brownies, butter scotch and graham balls. This sector is high in demand because of its
genre, and it is flourished very well in the Philippines. Based on Philippine Statistics Authority,
the GDP for 2014 is 45.62% while in the year 2016 the GDP increased by 46.77% making it as
the highest contributor to the merchandising sector.
Check materials By the time, the Gosiaoco Diane Maria Estimate the ₱154.00
needed for products are Residence Gosiaoco plastic
packaging and start available. cellophane
packing. needed for
packaging.
Bring the products The day of the University of Diane Maria Private Car None
to the selling area. selling period. St. La Salle Gosiaoco (note: on
March 1,
there is a
transportation
expense of
₱20.00)
Sell the products. During vacant University of All members Roaming none
time. St. La Salle around the
campus and
doing sales
talk to
potential
customers.
Count the sales After selling the Solomon Mini Nicole Ann Compare ₱18,000.00
received. product for a Canteen Gomez and the actual
day. Frendee Lara sales to the
Laudato projected
sales with
the help of
calculator.
Check and list After counting Solomon Mini Nicole Ann Recording none
income generated the sales Canteen Gomez and the income
for the day. received. Frendee Lara generated
Laudato for the day
in our sales
notebook.
The steps indicated above were followed thoroughly by the group of Sweety Treats to ensure the
smooth flow of the business operation.
Sweety Treats has a sale of ₱ 18,000.00 from the three products namely Brownies, Butter
Scotch and Graham Balls. The breakdown of our sales are: ₱ 5,400.00 for brownies, ₱5,400 for
Butter Scotch and ₱7,200.00 for Graham Balls.
Our sales for each product has its corresponding profit. Our net income are as follows:
For Brownies we have a profit of ₱1, 620.00, same with Butter Scotch amounted ₱1,620.00, and
for graham balls ₱ 1, 800.
V. Report on Objectives
The group accomplish all the objectives they had stated in the previous simulation
activities. They were able to accomplish it for a reason that they coordinate with each other
during business operation.