Blueternity

__________________________
A Business Plan Presented to
The Faculty of Business College
Notre Dame of Dadiangas University
General Santos City
___________________________
In Partial Fulfillment of the Requirement for the
Degree of Bachelor of Science in Business Administration
Major in Financial Management and Major in Economics
____________________________

By:
CABANES, KENT
CASTILLO, LORDJENA
DELOS REYES, JESSA AMOR
DORONILA, RENN MARC
DUREMDES, AARON JOSEPH
GALEOS, JANNINE
PANIZALES, JELINE
RAGAS, AIROLD
RONDINA, LESLEY JEAN
SIEGA, MELCA

March 2020
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Acknowledgement
First and foremost praise be to our Almighty God who help the team to overcome

different challenges in operation of their business. Moreover, for the knowledge and

wisdom that He bestowed in each of the team members to create such wonderful

product. The team would like also to express deep and sincere gratitude to their

adviser, Ms. Cherryfel V. Cerna MBA, for guiding and sharing insights on how to

operate business in an efficient way. Her dynamism, vision, sincerity and motivation

have deeply inspired the group. She taught the methodology to carry out the Merkado

and to present the Blueternity clearly as possible to the market. To Ms. Alfie Maria R.

Custodio, Ph.D., the college dean, for the opportunity given to show the creativity, skills

and knowledge of the students to establish business and writing this business plan.

The team would also extremely grateful to our parents for their love, prayers,

sacrifices and support that they extend. Futhermore, thankful to the each member of the

other groups of Merkado for the support had showed to each other. There may be

differences but still choose the importance of friendship and camaraderie.

To the Blueternity Team, thank you so much for actively participating to

showcase the skills and talents that made this practicum successful and memorable.

They entered the Merkado as merely classmate but they end up meeting a family within

their circle. They may be part ways after the Merkado but surely they will meet again for

the fulfillment of their dream and to formally establish the business in the near future.

Blueternity will be temporary signing off but definitely will be back soon. Blueternity: A

Taste of Infinity.

Truly, it was a fruitful memories. To God be all the Glory!

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Table of Contents
Title Page i
Acknowledgement ii
Table of Contents iii
List of Figures v
List of Tables vi
List of Exhibits vii
Executive Summary viii

Chapter I: Introduction
Rationale 1
Statement of the Problem 2
Objective of the Study 3
Significant of the Study 4
Methodology 5
Scope and Limitations 6
Definition of Terms 7
Chapter II: Review of Related Literature
Business Trends 8
Product Description 9
Sources and Uses 9
The Market 10
Chapter III: Business Plan
Business Description 11
Management and Operation Aspect 20
Marketing Aspect 27
Technical and Production Aspect 37
Financial Aspects 42
Socio Significant Aspect 50
Chapter IV: Actual Financial Aspect and Reflections
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Management Aspect 57
Marketing Aspect 72
Production Aspect 86
Financial Aspect 99
Actual Financial Reports 111
Appendices
A. Projected Financial Statements Schedules
B. Actual Financial Statements Schedules
C. Group Norms
D. Chief Executive Officer’s Reports
E. Secretary’s Reports
F. Chief Finance Officer’s Report
G. Production Reports
H. Purchasing Reports
I. Inventory Reports
J. Opening Documentation and Awards
K. Store Operation Documentation
L. MERKADO 2020 Documentation
M. Individual Reports
Curriculum Vitae
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List of Figures
Figure Page
1 Product Brand Name 12
2 Product Labeling and Packaging 14
3 Organizational Chart 20
4 Estimated Market Size 29
5 Estimated Market Share 30
6 Proposed Distribution Channel 34
7 Location Map 38
8 Vicinity Map 39
9 Booth Layout 39
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List of Tables
Table Page
1 Personnel Salary Structure 26
2 Time Table 27
3 Proposed Pricing Structure 35
4 Blueternity Ice Cream 41
5 Drink Ternates 42
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List of Exhibits
Exhibit Page
1 Total Project Cost 43
2 Projected Income Statement 44
3 Projected Cash Flow Statement 45
4 Projected Balance Sheet Statement 46
5 Actual Project Cost 111
6 Actual Income Statement 112
7 Actual Cash Flow Statement 113
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Executive Summary

Blueternity is a business praticum engaged in producing healthy ice cream and

drinks. It is established on January 2020 at Notre Dame Of Dadiangas University,

General Santos City. We began our business plan as a way to profit from our passion

and provide others in our locality with healthy and unique products. We fell that our

business is uniquely positioned to profit in the industry, and we feel that our company

can continue to leverage the expertise we have gained into higher levels of profit and

customer satisfaction.

The main purpose of this business practicum is to enrich the knowledge and skill

of students in dealing with producing and selling of unique products made by Notre

Dame of Dadiangas University students whose taking up Financial Management and

Major in Economics. Blueternity will also set itself apart through its commitment to high

product quality, not only in terms of food but also through offering friendly and high

quality service.

The Blueternity business form is partnership were the members of the

organization agreed to contribute their shares such as monetary, time, effort and skills.

It is also agreed with the group that the profit distribution will be equal.

In addition, Blueternity used various marketing strategy such as the use of social

media, word of mouth, product strategy, pricing strategy and service strategy. The

target markets of the business are merely the students and the personnel of the

institution.
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CHAPTER I

Introduction

This chapter presents the project rationale, statement of the problem, objective of

the study, methodology, scope and limitations and the definition of terms.

1.1 Project Rationale

Management 424 is the course title of production planning and development

which requires financial management student to finished a 200-hour actual business

exposure. This will be a venue for the students to expose their skills, knowledge,

abilities, and creating ideas by innovating products specially food products.

To accomplish the needs of the course, the researchers act as a team to come

up with specific raw material together with its finished product to be produced.

Furthermore, as required by the course the said product should be unique and

can generate profit. The researchers had decided to use Bluternate flower as the raw

material since the requirement was to use a healthy and natural materials. Blueternate

flower is commonly known as Asian pigeonwings, bluebellvine, blue pea, butterfly pea,

cordofan pea, and Darwin pea. In the Philippines, it is recognized as a magic flower

because of its many health benefits which made a trend over social media post. People

enjoy its health benefits through soaking the flower in warm water with or without added

sugar then drink it. Few of its health benefits are; improve eyesight, improve hair

growth, anti-diabetic and antioxidant. Aside from given fact of its health benefits the

flower also has a very nice blue color when soaked into the water which also attracted

people to drink it because blue colored tea is quite unusual.

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The researcher used the presented information as a deciding factor to pursue

their desire raw material for the business. The food manufacturing business that the

researchers will be putting is Blueternity. The intention of the business is to produce

new and unique taste of food and drinks incorporated with bluternate. Blueternity will

also be made to generate future cash flows and provide its market with satisfying foods

and services.

The products to be offered are blueming ice cream and drink ternates which has

4 different flavors: milkytenate, lemonternity, cucumternate and orangeternity. With the

uniqueness of the products, very reasonable prices, profound promotional strategies,

and satisfactory taste, it is believed that it will positively capture the taste and attention

of its target market. Furthermore, the work and undying effort to be taken in the

production will help the partners meet their objectives.

1.2 Statement of the Problem

The study aims to determine the profitability and feasibility of producing

different products out of blueternate. Speacially, it seeks to the answer for the following:

1. What is the profile of the business in terms of:

a. Product offered;

b. Form of organization;

c. Number of personnel needed;

d. Qualification of personnel; and

e. Duties and responsibilities of the personnel?

2. What are the general strategies of the business in terms of:

a. Product Strategy;
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b. Pricing Strategy;

c. Distribution Strategy;

d. Promotion Strategy?

3. What are the recommendations to be made for the sustainability of the

products?

1.3 Objective of the study

The objectives of the study are to determine the following aspects.

1.3.1 Management of the Organization

• To determine the objective of the organization.

• To create and identify the organizational structure.

• To determine the specific task, duties and responsibilities of each

member in the organization.

1.3.2 Marketing

• To develop marketing skills to sell the products.

• To determine suitable marketing strategies.

• To identify the target market of the products.

1.3.3 Financial Study

• To be familiar how to handle the business operation of the business

especially in financial aspect.

• To maximize and manage well the cash flow.

• To distribute properly the specific factors that affects the business

operation (e.g. cost, expenses, sales, etc.)

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• To identify and budget the product cost.

1.3.4 Technical Production

• To identify the accessible equipment and facilities for the use of

production.

• To know the raw materials needed in the production of the

organization.

• To determine the quantity of the products to produce.

1.3.5 Social Significance

• Right etiquette in dealing with the customers.

• Proper distribution of the product to the customer.

• Maintaining proper hygiene and cleanliness towards customers.

• To know the effectiveness of the society.

• Learning the importance of the business to society.

1.4 Importance of the Study

This study will be significant to the following entities:

Food Industry- This study will be a helpful tool to the industry in gathering

information about starting up a Blueternity business that will eventually reduce

the uncertainties for planning and provide assurance fund.

Blueternity Vendors and other Supplier- The study would help in

safeguarding the identical distribution of the benefits to them. Also it helps in

generating future income.

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Entrepreneurs- Those that are fascinated in exploring new opportunities

of Bluetenity business, this study will help them to gather ideas and significant

strategies on developing new and unique products from Blueternity which at the

same time maintaining the commitment to compromise the quality with a

reassuring purpose to cater the needs, preferences, wants, quantity and the

quality serve as a guide in making better studies that are marketable and

profitable enough. Moreover, this will provide standard development of the

products in considering of the working conditions, social protection and life skill

development to improve the level of profitability.

Administrator and Professors- This study can be used as basis and

reference for future instructions by them. This will also serve as source of ideas

and knowledge about the topic and terms in relation to the study of the business.

Consumers- This study will help to educate them on how the production

has been done and the contents of it specifically in its health benefits.

Future Researchers- Subsequently making a study will be challenging

and as the same time a rewarding experience, this study will encourage them to

pursue an in-depth original study related to Blueternity business. This may also

be serve as reference for the business study.

1.5 Methodology

Primarily sources of idea and information used throughout the study are from books

made available in the library, academic websites and social media trending post about

blueternate. Other sources such as statistics that are accessible online may also be

used for supplementary information.

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The 200 hours of exposure was also used in improving the business study. The first

food presentation of the products was held at the assigned and was evaluate by

members of faculty as well as some representative students. The main purpose of the

first presentation was to polish the products and assessed if it is competent to sell it in

target market.

During the assessment and evaluation of the presentations, each group was graded

by the judges. The groups were ranked from first best presentation down to forth best

presentation. The first ranked was given a perfect score.

After the first product presentation, the groups prepared all the paper works that

should be done before opening of the physical store. The requirements are: formal

approval from Vice President for Administration of the school, Mayor’s business permit,

Barangay business permit, insurance and health card of each group members.

Moreover, the preparation of products and respective booth at the NDDU Canteen 2 for

the opening of Business Trade Fair 2020 was also done.

1.6 Scope and Limitations

The study concern with the marketing practice of the Financial Management

students of Notre Dame of Dadiangas University in the aspect of planning and

innovation and actual business exposure. Moreover, it also concern with the financial

management practice of the students in maximizing the available capital. The

Blueternity Team that composed of Financial Management and Economic Major

students’ main ingredients is Bluternate flower and will innovate into blueming ice cream

and drink ternates with four flavors to choose from milk, lemon, cucumber and orange.

The target market of the Bluternity Team will be students form college and senior high
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school inside the campus as well as the personnel. This study will be conducted within

the second semester of the academic year 2019-2020.

1.7 Definition of terms

The following terms presented below were operationally defined to provide better

understanding:

Management 424- This subject requires 200 hours actual exposure for 4th year

Bachelor of Science in Business Management major in Financial Management and

major in Economics.

Product- The innovative processed food and drinks of blueternate flower and is

offered to the business market with the objective of gaining profit which as the same

time will satisfy the preference of the market without sacrificing of its outstanding quality.

Blueming Ice Cream- One of the products of the business that serves better

version of an ice cream but with a little bit after-taste of a flower that look very pleasing

to the eyes and has plenty of health benefits.

Drink Ternates- One of the products of the business that serves better as a

quenchers that have a cooling effect combined with blueternate tea, honey and four

flavors to choose from milk, lemon, cucumber and orange that is totally refreshing.
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CHAPTER II

Review of Relates Literature

This chapter discusses the business trends, product description, sources and

uses of the market.

2.1 Business Trends

NDDU students recognize food as something to be enjoyed and something that

content their need for indulgence. In response, manufacturers in full service restaurants

and fast food chain outlets and even food cart stalls have developed strategies to offer

unique and indulgent menu options in the form of big quantity serving, more powerful

flavors and better ingredients. Nevertheless, innovation and continues improvement are

few of the strategies needed to jump into food business and to sustain such business.

Blueternity group is composed of Financial Management student that are

expected to produce unique products form their chosen raw material. From deciding a

raw material up to formulating what finished product to be produce, the students find it

challenging to come up with products that are both unique and at the same time

profitable without sacrificing its quality. After tons of ideas and suggestions, the whole

group agreed to use blueternate flower as the main ingredient. It will be then processed

into Blueming Ice Crea and Drinks Ternate with four different flavors Milkyternity,

Lemonternity, Cucumbernate and Orangeternity.

Blueternity products have been a popular for NDDU students as well as to

personnel. The beauty of its aesthetic appearance and its quality taste made it popular

towards them. The health benefits and the easy availability of the bluternate flower

persuaded each group members to use it as the main ingredient. Blueternity team came

up with this innovation that offers unique and healthy products with reasonable prices
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range in order to upkeep the needs of the market to promote healthy lifestyle among

people.

Blueternate flower is considered as a magical flower due to its abundant of health

benefits, it is a good source of vitamins and minerals. The products offered provides

cooling effect, exhibited significant anti-microbial effect, has a calming effect on the

body, reducing stress and anxiety.

It is an established fact that healthy living guarantees a longer life that is free

from any diseases and health complications. Consumption of healthy food is not about

sacrificing the enjoyment of indulgences. It is a matter of gaining plenty of benefits that

in return will affect positively in your life and promote overall health.

2.2 Product Description

In order to distinguish the products that are already available in the market, the

following products are made:

Blueming Ice Cream- pretty taste like ice cream but with a little bit after-taste of

a flower that look very pleasing to the eyes with its calming blue violet color.

Drink Ternates- quenchers that have a cooling effect combined with blueternate

tea, honey and four flavors to choose from milk, lemon, cucumber and orange.

2.3 Sources and Uses

Equal contribution from each member will be the source of capital of the

business. The business will personally buy the supplies of the main ingredient and the

other materials needed. Primarily, the equipment to be used by the business is coming

from the members of the group. Any equipment that are not available will be brought

from the mall or market that will serve as the group investment to the business.
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The products are projected to supply large amount of customers due to its

aesthetic appearance, quality taste and uniqueness this the group made it sure that the

materials and ingredients will be easily purchase and be available anytime use in the

production.

2.4 The Market

The main target market of the business is the students of Notre Dame of

Dadiangas University from college to senior high school. The employees and visitors of

Notere Dame of Dadiangas University are also considered as the target market of the

business.
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CHAPTER III

Business Plan

This chapter discusses the business description, background of the business,

management and organization aspect, marketing aspect, technical operational aspect

and socio-economic aspect.

3.1 Business Description

This section presents the description of the product, background of the business,

potential of the venture and uniqueness of the products.

3.1.1 General Description of the Product

This part presents the brand name, product features, product style,

product, quality, packaging and labeling.

3.1.1.1 Brand Name

Any business needs to have a brand name that enables its market

easy to remember and to recognize the makers of goods or provide services. Over time,

and with consumer involvement, brand name acquire standings for quality, value, price-

level, trustworthiness, and many other traits that help consumers choose among

competing businesses. They are convenient and highly abbreviated tools of

communication.

The increasing consumption of beverages such as coffee and tea

around the world encourages different business individuals to invest to type of business.

Tea is very advantageous and possesses numerous health benefits, which makes it an

attractive beverage for health-conscious consumers.

The name is derived from the raw material which is blueternate

flower. One of the missions of the business is to introduce the health benefits of
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blueternate flower in our body especially to the young generation. These health benefits
are for long term or for “eternity”. The name is “Blueternity” combined from blueternate
flower and eternity of its health benefits. The business also has a tag line “A Taste of
Eternity”.

Figure 1. Product Brand and Name

3.1.1.2 Product/Service Features

The two products of Bluternity are of the highest quality and value, plenty

of health benefits and provided with outstanding personal series at the lowest possible

price range. Blueming Ice Cream pretty much taste like usual ice cream but with a little

bit after-taste of a flower that look very pleasing to the eyes with its calming blue violet

color. Drink Ternates quenchers have a cooling effect combined with blueternate tea,

honey and four flavors to choose from milk, lemon, cucumber and orange that surely the

consumer will be curious about the taste of each flavor and so they will avail all the

flavors.

It is also been studied that blueternate flower improve eyesight, improve

hair growth, stimulate collegen which is good for the skin, antioxidant and promotes

normal urination which in turn lowers blood pressure. Blueternate has a calming effect

on the body, reducing stress and anxiety.

3.1.1.3 Product/Service Style

Blueming ice cream and drinkternates are influences by increasing

consumption of healthy food and beverages that will be receiving an interest with its fun

and aesthetic appearance combined with captivating taste. Being the best means
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providing outstanding quality, superb service, cleanliness and values so that we can

make every customers be satisfied and to create future local store.

3.1.1.4 Product/Service Quality

The objective of the business is to enrich an understanding of service

quality in dealing and selling local brand products made by NDDU students enrolled in

Management 424 course and also by enhancing a conceptual framework and

measurement scale. The quality of the food and service is defined as meeting or

exceeding the expectations of the customers. The food should be at its superb quality in

terms of the preparation and the service should be prompt, standard and courteous.

The Blueternity products are using equipment and tools that will help

produce the products at the set standard and best quality. It will be also help to

sanitized, cleaned and in good condition before it will be serve. In the food business,

sanitation and proper hygiene is very vital to avoid food poisoning and to ensure the

health of every customer.

3.1.1.5 Product Packaging

The packaging of the product serves as different functions for products.

Packaging serves as the face of the product it serve the purpose of handling, transport

and display of the products. Packaging also provides a means to market the products.

The packaging comprises of the business logo, tagline and product’s name.

3.1.1.6 Product Labeling

The label printed on the product’s packaging is a significant selling point

for a business. It is vital element in decision making of every consumer. Product labels

perform several functions to pinpoint the products which are the product name,
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ingredients, expiration date and nutritional facts and other requirements such as the

information or contact details about the products.

The following figure presented are the product label.

Figure 2. Product Labeling and Packaging

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3.1.2.1 Business Name

It is a word, sign or symbol to attract costumer, that uniquely identifies a business

or a firm instead of the goods or services. It is also known as the trade name of the

company. Blueternity was the name agreed by the researchers. It is combination of the

name of the main ingredient which is blueternate and the word infinity. The consumers

will taste goodness that will neither last for infinity nor endless.

3.1.2.2 Business Mission and Vision

The ultimate goal of the organization will be serve as guide to the path of

success. It defines and reflects the company’s business and describes the desired

future position of the entity. Nonetheless, mission and vision of a company is necessary

to have. Thus, the following stated below are the mission and vision of the business.

MISSION

To be part of people’s lives by offering healthy foods with high quality at

affordable prices locally.

VISSION

To be one of the leading Tea shops in General Santos City, that promotes healthy

environment in a cheaper way.

3.1.2.3 Business Objectives

Blueternity will be offering superb products in line with excellent service that

benefit the target market. Health benefits and to offer spectacular taste of the food

products are also concern of the business. These are the following objectives:
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Management and Organization Aspect

• One of the priority goal is to increase the value of the organization/team itself.

• Abide Total Quality Management (TQM) , which means focusing on the quality

improvements on both the service and the product in a way of doing things more

efficiently and effectively.

• Reducing the error rates in terms of the productions and preparation by assigning

the task to the right and capable person in maintaining the superb standard of the

product.

• Improve and maintain the workplace safety.

Marketing Aspect

• Best value for the cost of the purchasing product.

• Maximizing the available capital.

• Proper management of the revenue versus expenses by maintaining its

profitability.

• Sell the product efficiently to tits target market.

• Sell the products in accordance to the budget capability of the costumer.

• Identifying the strength of the business and enhance it as well as the weakness

then improve it.

• Finding opportunities towards competitors and identify its threat.

• Be a good sport towards competitors.

Technical and Production Aspect

• Wide flavors of product offering for the consumers to choose from.

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• Reduce, reuse and recycle will be practice in terms of the use of the product

packaging. (Tumbler for drinkternates)

• Reduce energy usage per unit of production.

• Increase reliability of the operations.

• Make every single product within the set standard.

• Maximize the available ingredient and reduce the wasting of the product

ingredients.

Financial Aspect

• Increase revenue.

• Manage cost.

• Maintaining the effectively of the cash flow.

• Maximizing the available budget.

• Ensuring the financial stability.

• Reduce waste by a certain amount.

• Value every money that is available.

Social Significant Aspect

• Reliable products and service provided.

• Products with lower price range without sacrificing its best quality and value.

• Emphasizing the health benefits they can gain from the selection of products.

• Enhance the customer satisfaction.

• Give the superb product.

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3.1.2.4 SWOT Analysis

In this part provides the internal strengths and weaknesses as well as its

opportunities and its threats.

Strengths

• It has a unique main ingredient.

• Excellent taste.

• Plenty of health benefits.

• Affordable price.

• With quality products and services provided.

Weakness

• New to the market especially the taste of the blueternate as a tea.

• Limited human resources especially during peak hours of the operation.

• Marketing and production budget.

• Big competitors already established better branding and reputation.

• The packaging especially the no plastic policy implemented in the local area.

Opportunities

• Attract consumers who are health conscious would definitely avail the product.

• It is new to the market.

• Its aesthetic appearance will attract the consumers especially those who love to

take photo of the food or drinks they buy.

• It is delicious and affordable to the market.

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• The raw materials are easy to innovate.

• The easy availability of the raw materials in the market place.

• Can easily conduct benchmarking and the competitors can easily be reach.

Threats

• Competitors are nearby the area.

• Target market has different preference in terms of taste and budget.

• Customers demand and the loyalty is not that strong yet.

• The attention of the costumer will be divided towards the other competitors

nearby.

3.1.3 Potential of the Venture

The products offered are known to be dessert and quenchers. Desserts are

usually comfort food for a person to free their mind and body from stress and

exhaustion from their long and hard lessons. Also, ice cream could cool down the body

temperature from the extreme heat they experience. As the product has an aesthetic

appearance and its plenty of health benefits, thus, the products offered by the business

have greater possibilities to sell in the area.

3.1.4 Uniqueness of the Venture

The business, Blueternate, offers product that could help the community in

promoting healthy food consumption. People now a days are conscious with what they

eat and drink and they tend to take attention to the ingredients and its health benefits it

bring. The main raw materials is not that know to everyone especially to the young

generations, but surely its health benefits is what will make it sell for. The business is
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also focusing on the healthy products to ensure the people in the community can

experience the superb taste for eternity.

3.2 Management and Organization Aspect

3.2.1 Form of Business Organization

The form of the business is partnership and it is agreed upon by the

members of the organization. The contribution will be fair in terms of monetary. It is also

discussed that the profit of the business will be equally distributed to each members of

the organization whatever their position is.

3.2.2 Organizational Structure

This part discuses and shoes the organizational chart of the company. It

also indicates the duties and responsibilities of each personnel including their

qualifications.

Figure 3. Organizational Chart

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3.2.3 Personal Qualifications

The following are the qualifications of each personnel’s position in the

organization.

Manager

• A graduate of four (4) year business related course.

• At least three years of management work experience.

• Must have attended trainings and seminars to enhance management skills.

• Must have great knowledge on handling the organization.

• Conducts research analysis for the betterment of the organizations in terms of

the product, services and man power handling.

Finance Head

• A graduate of four (4) year business related course.

• Has expertise in handling the financial operation of the organization.

• Computer literate and keen to details.

• At least have two year work experience in the financial field.

• Has proper presentation of the financial operartions.

Purchaser

• A graduate of four (4) year business related course.

• Has good oral and written communication skill.

• Has experience in handling inventory and production.

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• Responsible for purchasing the materials and items that are needed for the entire

operation of the business.

• Has good monitoring and organizing skills.

• A graduate of four (4) year business related course.

Collector

• A graduate of four (4) year business related course.

• At least two year work experience.

• Good skills in handling money with full honesty and dignity.

• With good attitude and well-discipline person.

Operation Head

• A graduate of four (4) year business related course.

• Has wide knowledge in proper handling of the entire business operation.

• Has a good leadership skill, good in oral and written communication skill.

• At least three year work experience in related field.

• Attended an intensive training for the purpose of developing its skills and

knowledge for the betterment of the organization.

Marketer

• A graduate of four (4) year business related course.

• At least two year work experience.

• Has excellent marketing skills and must know effective strategies.

• Has excellent innovation for the products of the business.

• Well in oral and written communication skill.

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• Has good public relation and can speak well in terms of business matter.

Product Head

• A graduate of four (4) year business related course.

• Well management skill especially in the production of the business.

• Attended training and seminars for the purpose of developing its skills and

knowledge for the betterment of the organization in terms of innovation of the

products.

• Has great knowledge in the production of the business.

• Monitors and organize the production of the business.

• Creative and well knowledge about the trends in the market and its production.

Controller

• A graduate of four (4) year business related course.

• Monitors and organize the production of the business.

• Allocates the available resources of the business.

• Well knowledge in using of the materials and resources available without waste.

3.2.4 Personal Duties and responsibilities

The following are the personnel’s duties and responsibilities in the organization.

Management

• Leads in accomplishing the department objectives by managing the man power,

planning and evaluating every department activities.

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• Embodies with leadership role, a manager is responsible for overall aspect of the

department such as the overseeing of the department as a whole.

Finance Head

• Responsible in producing financial reports and developing strategies based on

financial operations.

• Monitor the daily financial operation of the business such as payroll, invoicing

and other financial transaction.

• Review financial data and prepare monthly and annual financial reports.

• Responsible of the auditing.

Purchaser

• Prepares purchase order by verifying specifications and price; obtaining

recommendations form supplies for substitute items.

• Responsible for negotiating contract terms of agreement and pricing.

• Obtains requirements by verifying, preparing, and forwarding purchase orders;

verifies receipts order; authorizes payment.

Collector

• Keep records of payment on a daily basis.

• Review all the accounts of the business.

• Responsible in collecting the money and monitors the collection.

•
 25

Marketer

• In charge for identifying key customer groups or the target market.

• Responsible for price setting of the products and services offered.

• Create strategies use in establishing prices.

• Has the keen in information and has the capacity to think more ideas of products.

Production Head

• Planning and organizing production schedules.

• Responsible for the overall production of the business especially in selecting,

purchasing of materials.

• Records the flow of the products such as inventory of the materials.

Controller

• In-charge in production of the product following the set standard of the business.

• Ensures the superb quality of the product before it will be sell in the market.

3.2.5 Personnel Salary Structure

The table below shows the salary of the personnel;

 26

Table 1
Personnel Salary Structure

Personnel Monthly Salary

General Manager P 23,000
Finance Head P 18,000
Purchaser P 14,000
Collector P 12,000
Operation Head P 18,000
Marketer P 10,000
Production Head P 12,000
Controller P 15,000

3.2.6 Pre-Operating Activities

It is essential to for every business to conduct such activities before hand of the

final operation of the business. This is to ensure the familiarity of the entire operation of

the business to attain its objectives.

The conceptualization of the business is a requirement to ensure the success of

the entity. Business Plan is consist of ideas from the researchers which will eventually

be the guide of the business in the whole aspects of the operation, marketing, sales,

finance and productions. The location site of the business is one of the factors that

needed to attract the target market. Therefore, proper locating of the business site

should be done on pre-operation period. Capital is the blood line of a business; the

funds will be collected from the members of the organization and to be used for the

operation of the business. Allotting time for canvassing cheapest raw materials and

equipment is also needed before hand. Ensuring the quality of the materials and

equipment over its price should be highly considered. The equipment will be used in the

daily operation of the business therefore it should be suitable to be used for a long term.
 27

After which, the owners will begin to lay-out the overall appearance of the business

such as the booth design, labeling and packaging as well as the signage posted for the

advertisement of the business.

3.2.6 Time Table

Presented below is the table for the business.

December December January January February

Activities
10 18 7 9 28
Preparation of Business Plan
Collection of Funds
Gathering of Materials and
Permits/Requirements
Booth Preparation
Scheduling of Members’ Duty Hours
Start of Business Operation
Closing of Business Operation
Table 2. Time Table

3.3 Marketing Aspect

This part presents the marketing aspects of the business operation. It discusses

the issues and concerns in the marketing features which includes the Marketing

researcher and analysis, the target consumers, the size of the market, the strategies

used to attract the consumers, pricing analysis and strategy, and sales promotion of the

products.

3.3.1 Marketing Research and Analysis

Generally speaking researches helps to make better understanding about

a specific field. Marketing Research provides information on how to conduct a market

 28

research project and specifying several options that are available. It also helps to see

the advance plans and complications the industry may experience.

3.3.1.1 Target Market

The business target market are the people within the university

premises. Students of college and senior high school are the main focus as

well as the employees of the university. Visitors of the school are also

considered as target market of the business.

3.3.1.2 Market Size and Trends

This part defines the market product trend and the size of potential

target market. It is essential for a company to have knowledge about the

target market and the market itself in which it is going to enter. The

Blueternity is concentrate on the total population of the students in the

university because they are identified as the primary target market. Eighty

percent on the income comes from the students, fifteen percent will be on

the personnel and five percent will be sourced out from outsiders/visitor

purchasers.
 29

5%
15 % College Students
40 % Senior High School
Personnel
Visitors/Outsource
40 %

Figure 4. Estimated Market Size

3.3.1.3 Competition
The competitors will be classified as monopolistic competition since

there are only few competitors present with in the area that offers the

same product. The group competitors offer different types of entry

products.

3.3.1.4 Estimated Market Share

Market share exemplifies the percentage of an industry, or market’s

total sales that is grossed by a particular company over a indicated time

period. The Bluetenity focuses on the population in the university which

includes the students and the personnel.

 30

25% 25%

25% 25%

Langkatulad Squasharap Ubodyaki Blueternity

Figure 5. Estimated Market Share

3.3.2 Marketing Strategies

Marketing strategies is uniting all of marketing objective into a one

comprehensive plan. An effective marketing strategy should be drawn form market

research and focus on the accurate product mixture in order to accomplish the

maximum profit potential and to further sustain the business. The following presented

below are the identified marketing strategy of Blueternity:

• Build Awareness

It is an ideal opportunity to create sales, it also help the customers

to have knowledge with the health benefits of taking bluetenate flower as

the main ingredient of the offered product. Through free taste, personal

selling and social media advertisement, they will be aware of the product

offered by the Blueternity. Such social media advertisement is inviting a

vlogger or social media influencer to advertise the product offered by the

business.
 31

• Enhancement Consumer Confidence

Since the bluetenate is quite new the market as a new flavor for ice

cream and drinks so it is important to showcase the product by

approaching the customer first and give them information. In this way

costumers will be knowledgeable enough and will eventually boost

customer’s confidence.

3.3.2.1 Sales and Distribution Strategy

This part contains the sales and distribution strategy and

inventory control management of the business.

3.3.2.1.1 Sales and Distribution Method

Blueternate generates sales by offering the target market

with superb products and services. A unique strategy that the

member formed is to roam around the university and personally sell

the ice cream through bringing the ice cream cart like how the usual

dirty ice cream is being sell in streets.

3.3.2.1.2 Inventory Control Management

Every piece of inventory is money in business. A small or

huge equivalent value of a material should be given importance

through maximizing its potential usage. Inventory management is

the process of effectively and efficiently supervising in and out flow

of units or product. The business will ensure to conduct a thorough

controlling and monitoring of the inventory in order to avoid

unnecessary additional costs in the part of the venture.

 32

3.3.2.1.2.1 Order Quantity

Blueternity will ensure to estimate its purchases

efficiently. Assessing of each of the materials should be

made on daily basis this is to determine what good are to be

stocked and which goods are to be replenish considering its

shelf life. The Blueternate will produce enough product to

ensure the quality and freshness of the products.

3.3.2.1.2.2 Order Lead Time

Blueternate will buy new materials at the supermarket

and the public market. The assigned personnel is the one

who is responsible in acquiring the materials needed to

sustain the operation of the business. Furthermore, the

customer of the business will have to a minute or two before

having the desire product.

3.3.2.1.2.3 Volume of Safety Stock

Assuring the customers that the offered products of

Blueternity are fresh and made of good quality raw materials

is one of the principle the business have. Therefore,

personnel will be assigned on daily monitoring of the

materials and ensures that there will be no spoiled materials

will be used in the production. An effective way that needed

 33

to be practice within the business is the first in first out

(FIFO) policy and the labeling of each of the raw materials.

3.3.2.1.3 Transportation

The transportation within the area is accessible and it will not merely affect the

operation of the business if in times indeed to buy materials.

3.3.2.1.4 Cost

The transportation cost will be also monitor and control since it is part of

expenses in the business under the utilities expense. The transportation cost will be 10

per person who will transport within the city proper to buy materials.

3.3.2.1.5 Speed
Since the location site of the business is within the city proper, traffic is expected

to experience during transportation. Nevertheless, a member assigned in material

purchasing should anticipate the city traffic therefore setting enough time to transport

and to buy is necessary.

3.3.2.1.5.1 Service/Reliability of Transportation

The transportation that will be use is tricycle which is easily available

around the area since the location site of the business is just within the city

therefore the transportation vehicles will not be hard to have when buying

materials for the business operation.

 34

3.3.2.1.5.2 Cost of Damage

Food businesses should ensure that the raw material used are fresh and

maintain its good quality. Any damage equipment and spoiled raw material will

be replaced immediately to prevent possible cause of delay in the operation of

the business.

3.3.2.1.6 Storage/Warehouse

Blueternate will provide its fridge to keep the freshness and to prolong the shelf

life of materials. Some of the ingredients that are not perishable will be kept in the stall.

3.3.2.1.7 Distribution Channel

Blueternity’s distribution channel will be from the business and directly to the

prospective customers. This is because the business uses direct selling and has a

hands-on process.

Blueternity Prospect
Products Costumers

Figure 6. Proposed Distribution Channel

3.3.2.2 Pricing Strategy

Blueternity will implement the cost based on the pricing strategy and market

penetration strategy. Cost based on the pricing strategy considers the cost of production

and margin of profit. The basis of this is getting the mark up in the cost of raw material

used in the product offered. With all the raw materials used and bought, a certain
 35

percentage is added to come up with reasonable price in order for the business to gain

profit from selling the products.

3.3.2.2.1 Pricing Structure

It shows the price of each corresponding products by the entity. The prices

of the products are according to the cost of production divided by the volume of finished

products.

Table 3. Proposed Pricing Structure

Volume
Cost of Individual Selling
Products of Mark
Production Cost Price
Finished Up
(Php) (Php) (Php)
Goods
Blueming Ice Cream 1,142.00 75 15.23 4.77 20.00

Dink Ternates 1,000.00 40 25.00 5 30.00

3.3.2.2.3 Promotion Strategy

This refers to the strategy that the business will practice in order to market

the products.

3.3.2.3.1 Advertising

The best way and the cheapest way to promote the product is the

use of social media. Considering it is free through posting a photo with

informative caption in facebook and instagram, it is the fastest way to entice the

target market especially now a day’s people are high-tech and regularly check

their social media accounts. It is a great way to advertise the product. Blueternity

also invited a social media influencer who will taste test the product and she will
 36

make a video that will be publish in Youtube. In this way actual influencer will be

the promoter of the products.

3.3.2.3.2 Direct Selling

Direct approach to the customer to market the product will be used

in order to attract more customers. The business will practice aggressive

selling wherein partners will roam around the campus to promote and sell

the products.

3.3.2.3.3 Publicity

The researchers had already plan on how to promote the product.

Social media post will greatly help to promote the products. During the

pre-opening of the business, the researchers did a food pictorial of the

products which has aesthetic graphical photos that matches the interest of

social media users and would hopefully make them into loyal customers.

Actively posting on social media will be practice by business in order to

attract more customers and make them updated with the business events

and promos.

3.3.2.3.4 Sales Promotion

The business supports the Green NDDU project of the school

where usage of plastic is highly prohibited. The business use a reusable

cups just like the usual tumblers in the market. There will be less five

pesos for every next purchase of drink-ternates. Also, for those who could

bring there NDDU tumblers to use for drink-ternates there will be less five
 37

pesos for every purchase. With this method would entice more customers

to come back to avail discount.

3.4 Technical Aspect

This section presents the technical process, site analysis, production needs,

labor supply and manufacturing cost data.

3.4.1 Technical Process

This part presents the raw materials of be used in the manufacturing

process.

3.4.1.1 Raw Materials

The raw materials used in each of the products are the following:

Blueming Ice Cream

Milk, coconut milk, sugar, starch, salt (for ice storage), Blueternate

Flower

Drink Ternates

Blueternate flower, ice, honey, soda and four flavor to choose from

milk, lemon, cucumber and orange.

3.4.1.2 Manufacturing Process

The process of creating the products will base on the researchers

made from internet sources and by trials made by the researchers.

 38

Blueming Ice Cream

1. Mix well the chilled cream and chilled condense milk in a metal bowl.

2. Add flavor (blueternate flower).

3. Freeze for 4-6 hours.

4. Best serve when chilled.

Drink Ternates

1. Put ice in a cup.

2. Add the fresh milk/lemon juice/cucumber juice/orange juice.

3. Add sugar or honey

4. Slowly add the blueternate tea.

3.4.2 Location Analysis

Bluternity will be located at Notre Dame of Dadiangas Univesity. The place is

ideal for putting up a business because it caters a large amount of students and is

accessible form the sources of materials.

Figure 7. Location Map

 39

Figure 8. Vicinity Map

3.4.2.1 Both Layout

The layout of the booth is enough to cater the number of members in the group

during daily hours of production as well as the customers. The both is design according

to the themed agreed by the members. It is well protected from sunlight and equipped to

display the products.

Figure 9. Booth Layout

 40

3.4.3 Production Needs

This part presents the needs of the business for production such as the facilities,

equipment, utilities and waste disposal.

3.4.3.1 Facilities

For the position, the booth will be located at Notre Dame of Dadiangas

University. Are for cleaning the used materials as well as the area for production

will be needed.

3.4.3.2 Equipment

The business will use equipment such as fridge for the production

process. The business will also use utensils, tables and chairs.

3.4.3.3 Utilities

The utilities that will be used in the business operation are water and

electricity. Those will be provided by the school and will eventually paid by the

business on a monthly basis.

3.4.3.4 Waste Disposal

To abide with rules at the store location which is at Notre Dame of

Dadiangas University, the business will maintain their area clean as often as

possible. The waste will be segregated into biodegradable and non-

biodegradable.
 41

3.4.4 Supplier Transportation Factors

The suppliers of the products can be easily access anytime when the time in

need in the operation. The suppliers are located near the location site of the business. I

will only take a minimum estimated time of 3-8 minutes and a maximum of 10 minutes

ride from the production site are to the supplier.

3.3.5. Labor Supply

The production of the business will be nine (9) Financial Management students

and one (1) Major in Economics. Each and every one will contribute effort and

cooperation for the production and selling of the products.

3.4.6 Manufacturing Cost Data

The business will offer different products and will be made using different

materials to properly account for such materials, the business computer the

manufacturing cost as presented in the table:

Table 4

Blueming Ice Cream

Blueming Ice Cream (68 servings) Price

Milk 400.00
Coconut Milk 80.00
Sugar 110.00
Starch 40.00
Salt (for ice storage) 30.00
Ice 80.00
 42

Flavor (Blueternate Flower) 100.00

Packaging 102.00
Labor 200.00
Total Operating Expenses 1142.00

Table 5.
Drink Ternates

Milkyternity Price

Blueternate Flavor 40.00

Fresh Milk/Lemon/Cucumber/Orange 400.00
Sugar 120.00
Ice 80.00
Packaging 280.00
Labor 80.00
Total Operating Expenses 1000.00

3.5 Financial Aspect

This part shows the financial forecast, financial analysis, cost control,

sources, and uses of funds, budgeting plans, and stages of financing.

3.5.1 Financial Forecast

This part presents the financial aspect of the company. It includes the

source and uses of funds, budgeting plans, and stages of financing.

 43

3.5.1.1 Total Project Cost

This controls the total amount of cost to be spent by the proposed

business.

Exhibit 1

Blueternity

Total Project Cost

Capital Expenditure Schedule Equity
Booth Decorations 1 1,671.75
Pre-Operating Activities
Insurance 2 876.00
Permits and Licenses 2 656.00
Working Capital Requirements
Packaging 5 44,279.00
Materials 3,288.63
Utilities Expense 3 1,000.00
Rent Expense 3 2,000.00
Total Project Cost 53,771.38

3.5.1.2 Financial Assumptions

The following are financial assumptions that will be used by the

business in its financial statement.

1. Blueternity monthly sales will increase by 15%.

2. Cost of sales will increase by 5% monthly.

3. Rent expense for two months has been paid during the first

month operating period.

4. The currency used is Philippines Peso.

5. The business will incur no liabilities.

6. Profit and losses will be shared equally by the partners.

 44

3.5.1.3 Financial Statements

This section presents the projected financial statement of the

business. This presents the income statement, cash flow statement, and

the balance sheet of the business.

3.5.1.3.1 Income Statement

The section shows the performance of the business for the

given period of time. The business revenues, expenses and net

income for two (2) months (January and February) will be

presented.

Exhibit 2

Blueternity

Projected Income Statement

Pre-
Schedule Operation January February

Sales 5 183,000.00 210,450.00

Cost of Sales 6 91,915.00 96,510.75

Gross Profit 91,085.00 113,939.25

Operating Expense:

Booth Decorations 1 1,671.75

Materials 2 3,288.63

Insurance 7 876.00
Permits and Licenses
7 656.00
Packaging 4 44,279.00 46,492.95
Utilities Expense 8 600.00 600.00
Rent Expense 8 2,000.00 2,000.00
Transportation Expense 9 300.00 1,000.00 1,100.00

Total 6,792.38 47,879 50,192.95

Net Income (Loss) 8,907.62 43,206.00 63,746.30
 45

3.5.1.3.2 Cash Flow Statement

This statement of cash flow shows information about the cash

receipts and cash payments of the business during the period. It shows

the net increase and decrease of the cash from its operating, investigating

and financing activities also the beginning and ending cash balance,.

Blueternate is handling cash efficiency as presented in the cash flow

statement.

Exhibit 3

Blueternity

Projected Cash Flow Statement

Pre-
Schedule January February
Operation
Cash Inflows
Cash Inflow from Members'
Contribution 3 15,700.00

Cash Inflow Revenue 183,000.00 210,450.00

Total Cash Inflow 15,700.00 183,000.00 210,450.00

Cash Outflow:
Payment for Rent 8 2,000.00 2,000.00
Payment for Permits and
Licenses 7 656.00

Payment for Insurance 7 876.00

Payment for Materials 2 3,288.63

Payment for Cost of Sales 6 91,915.00 96,510.75
Payment for Utilities 8 600.00 600.00
Payment for Booth
Decorations 1 1,671.75
Payment for Packaging 4 44,279.00 46,492.95
Payment for Transportation
300.00 1,000.00 1,100.00
Expense 9
 46

6,792.38 16,500.00
Total Cash Outflow 99,794.00

Net Cash Flow 8,907.62 43,206.00 63,746.30

Add: Cash bal., beg. 8,907.62 52,113.62

Cash Balance, end 8,907.62 52,113.62 115,859.92

3.5.1.3.3 Balance Sheet

The balance sheet is company’s assets, liabilities and

shareholders’ equity at a specific point in time, and provides a basis for

computing rates of return and evaluating its capital structure. For

Bluternity, it is assumed that the business incurs no liabilities foe two (2)

months.

Exhibit 4

Blueternity

Projected Balance Sheet Statement

Pre-
Assets Operation January February

Cash 15,700 43,206.00 63,746.30

Total Assets 15,700 43,206.00 63,746.30

Beginning 8,907.62 8,907.62 52,113.62

Add: Net Income 34,298.38 63,746.30

Partners' Equity, end 8,907.62 43,206.00 115,859.92

Cabanes, Capital 890.76 4,320.60 11,585.99
Castillo, Capital 890.76 4,320.60 11,585.99
Delos Reyes, Capital 890.76 4,320.60 11,585.99
Doronila, Capital 890.76 4,320.60 11,585.99
Duremdes, Capital 890.76 4,320.60 11,585.99
Galeos, Capital 890.76 4,320.60 11,585.99
 47

Panizales, Capital 890.76 4,320.60 11,585.99

Ragas, Capital 890.76 4,320.60 11,585.99
Rondina, Capital 890.76 4,320.60 11,585.99
Siega, Capital 890.76 4,320.60 11,585.99

3.5.2 Financial Analysis

Financial Analysis is used as an indicator to express the

comparison or ratio between figures in the statement of figures from one

statement.

3.5.2.1 Profitability Ratio

Profitability pertains to the ability of the business to generate profit.

The ratio shows the percentage of net income over the total sales in a

given period.

Formula: Profit Margin = Net Income / Sales

January February

Net Income
43,206.00 63,746.30
Sales
183,000.00 210,450.00
Ratio 0.23

Analysis: The business will earn P0.823 for every P1.00 sales for January

and P0.30 for February.

3.5.2.1.2 Turnover Ratio

Turnover ratio analysis shows the relation between net sales and

value of the business assets.

Formula: Total Asset Turnover = Sales / Total Assets

 48

January February
Sales
183,000.00 210,450.00
Net Sales
43,206.00 63,746.30
Ratio 4.24 3.30

Analysis: The assets have been efficiently used in generating the sales.

3.5.2.1.3 Leverage Ratio

This determines the company’s methods of financing. It indicates

the relative proportion of equity to finance the company’s assets.

Formula: Leverage = Assets / Capital

Average Assets 18,500.00

Average Equity 18,500.00

Total 1.00
Analysis: The assets are 100% financed with equity.

3.5.2.2 Liquidity Ratio

This measures the firm’s ability to meet the cash needs as they

arise such as accounts payable and operating expenses.

As for Blueternirt, it does not incur any liabilities hence all cash are

intended for the business operations expenses.

3.5.2.3 Breakeven Analysis

Breakeven is the point where the total cost expenses equal the total

revenue. This is significant to identify the minimum amount of peso sales

in order to cover all the expenses. This is also the point where there is no

profit.
 49

Formula: Contribution Margin = Selling Price / Price Cost

Blueming Ice Drink

Contribution Margin Cream Ternates
Selling Price 20.00 25.00
Price Cost 16.79 5.00
Contribution Margin 3.21 5.00

Formula: Breakeven Point = Cost – Cost Contribution

Blueming Ice Drink

Breakeven Analysis Cream Ternates
Cost 16.79 25.00
Contribution Margin 3.21 5.00
Breakeven Point 13.58 20.00
Analysis: To cover the expenses in production and for the business not to

generate loss, the selling price of each product should be equal or more

than the breakeven point.

3.5.3 Sources and Uses of Funds

The source of financing will be the monetary contribution of the ten

(10) partners. Each member of the business will provide an amount that

will serve as the capital to start the business.

3.5.4 Budgeting Plans

To minimize unexpected expenses in the future there should be a

thorough planning in the operation and managing the business. It

discusses the possible expenses allotted to raw material, equipment,

utilities and others to have a good output and good quality products.

Also, it enables the business to forecast future expenses.

 50

3.5.5 Stages of Financing

It shoes the movement of the money allotted in starting the

business operation. The members will contribute an specific amount that

meets the projected cost in creating up the business. After the operation,

the income will be used for the next cycle of the operation.

3.6 Socio-Economic Aspect

Blueternity is a business that aspires and supports the no to plastic campaign of

the city. The business will also boost the tourism of the city since it is expected to at

least attract tourists from nearby places to try and purchase its innovative and

affordable products.

3.6.1 Effects of the Business to the Economy

Blueternity will help the local business to further discovery and use of

plastic wrappers.

Positive Effects in the Economy

• Generate jobs.

• Inspire entrepreneurs to innovate available raw materials.

• Encourage the people to seek out potentials from other raw

materials.

• Reduce plastics and practice reusing tumbler.

• Encourage the people to recycle.

Negative Effects in the Economy

 51

• The business might struggle in entering the industry due to

establishing brand in the area.

• The business might be categorized as something that is

unplanned, not ready and incapable of providing quality

products.

• The business might not be able to attain high standards set by

higher class individuals.

3.6.2 Effect of the Business to the Society

The business picked to generate jobs that may help lessen the

unemployment rate in the city. Also, the employees can extend financial aid to

their respective families in order to acquire their basic commodities.

3.6.2.1 Positive Effects in the Society

• Develop entrepreneurial skills

• Discover unnoticed marketing smarts

• Provide business ideas

3.6.2.2 Negative Effect in the Society

• Unsuccessful reengineering and process improvement

initiatives

• Decreased customer satisfaction and customer loyalty

• Slow development of high potential talent

 52

CHAPTER IV

ACTUAL FINANCIAL ASPECT AND REFELECTIONS

This part shows the SWOT analysis, and reflections on the different aspects of

the business which are management, marketing, production, financial, and the actual

financial, financial analysis, cost control, sources, and uses of funds, budgeting, stages

of financing.

SWOT ANALYSIS

MANAGEMENT

Strength

• Good working environment

• Good communication

• There is more than one personnel who can lead/handle the team

• Time management (academic and extra curricular activities.)

• Communication to group member about their task and responsibilities

Weaknesses

• Lack of man power (absences)

• Some members did not master the process of the operation (ex. Production of

the drinks, measurement of pure juice)

• Minimal misunderstanding between the members

 53

Opportunities

• Will be able to apply leadership skills to the actual work in the future

• Develop and discover the leadership within individual

Threats

• Other people may enter the way you lead the group

• Influence of the other people the way you handle your people

MARKETING

Strengths

• Good in marketing strategy

• Making use of social media

• Good in persuading customers

• The product is appealing to the customers

• The product concept is on trend.

• Free delivery service

Weaknesses

• Can’t fulfill the needs of the customers

• Can’t cater all the customers at short period of time especially at peak hours.

Opportunities

• Can continue the business outside the school

 54

• Gain interest from potential investors

Threats

• Lots of existing milk tea shops / competitors

• Taste and preference of customers

• School policies and restrictions

PRODUCTION

Strengths

• Complete supplies

• Skilled and equipped workers

• Good production equipment

Weaknesses

• Shifting job rotation

• Late/absences

• Lack of manpower during peak hours

Opportunities

• Ideal place for production

• Quality control

• Efficient food preparation

Threats
 55

• Limited supplies

• Competitors are just with in the area

• Weather condition

FINANCIAL

Strengths

• Liquidity

• Up to date financial records

• Hit the high gross record

• Using internal data

Weakness

• Errors in tally

• High level in expenses

• Lack of coins for change

• Missing receipts

• Being forgetful of how much cash outflow made within a day

Opportunities

• Master the debit and credit in making financial records

• Keeping track the financial flow process

 56

• Increasing sales

Threats

• Price increase of raw materials

• Product substitutions can affect the cost of goods sold

 57

Chapter 4
Business Operation
Evaluation
 58

REFLECTION
Management Aspect
 59

Kent D. Cabanes
Reflection Paper
Management

During on our 200 hours duty on merkado 2020, I feel that it was a successful

class which taught me a lot regarding how to function in a team and as an individual.

Blueternity management was very good because one of our group mates stood up to lead

us, as a well function individual. Each of us has a designated work assigned by our

leader. Our team implemented a rule that every time you are absent during duty hours;

means you are not included to today’s profit and that rule really motivate us to do our

duties on our merkado 2020 and ended up to a team who helping each other. Being

aware of our personality traits and tendencies not only help enhance our strengths but

also tackle our weaknesses. Knowing the attributes that make us unique is the first step in

identifying how to better ourselves so that we can continue to be the best possible version

of ourselves.
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Lordjena Castillo

Managemet

The achievement of an organization depends on the effective management of the

team. Management is reflect on a individual’s interpersonal and intrapersonal

assessment of him or herself. And management is arranges the factors of production,

assembles and organizes the resources, integrates the resources in effective manner to

achieve goals. It directs group efforts towards achievement of pre-determined goals. In

managing a business their a person who will act as leader in order the business will be

organize, however the business will not be successful without the help of the members,

each of members have our their own task. I felt bless in my group because we worked

as a team, everyone of us know what to do in our task. We challenges our self in order

to have an successful business and we manage the challenges that we encountered

because of the the team effort. Each of the group has a big rule in this business without

them the management of the group will not be organized. Even thought we are small

business we need to give our best in order to become successful in this activity.
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Jessa Amor Delos Reyes

Management
In management aspect it taught lot of things to me. This taught me that in

business you must know how to handle everything especially in a group and people.

You have to be ready for almost everything. Although, there might be circumstances or

problems that may arise in the business or in your team or group but then as a

management you need to know how to solve it. You have to prepare for the worst and

hope for the best. In business management is not an easy work to do to achieve any

sort of advancement you have to be effective at your work and you need to bring

concepts on the table. Also, the achievement of an organization defends on the

effective management of the team. It is important to analyze the goal of the business to

implement the motivation of others within your members. We must reflect that there

might be conflict, victories, and obstacles that may hinder the ideas or goals of the

business. A consistent analyzes of an organization will assist in making the charges

needed for success.

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Renn Marc Doronila

Management

Management uses resources to accomplish results; leadership motivates people

to achieve objectives. Managing is impersonal and can be demeaning. It presumes that

those being managed don't have ideas and f87eelings and must be told what to do and

how to do it. Management is appropriate for handling inanimate objects or routine jobs.

However, people like to be motivated to accomplish more challenging tasks, and they

do not like being herded and directed as if they were so many cattle.

Most of us enjoy technical work, and we sought development careers because

we like to do creative and challenging things. We also like to see the results of our

labors, particularly when our products work the way we intended. But when someone

treats us as if we were stupid or unthinking, we lose our energy and creative spark. As

team leader, you will probably have to manage at least some routine work, but

development engineering calls for leadership and for energetic and motivated teams.

That is the only way to consistently produce truly superior results.

One principal distinction between leaders and managers is that managers direct

people to obey their orders while leaders lead them. This crucial distinction is best

illustrated by an example. One software manager, Ben, told me how he learned what

leadership was all about. He was a marine lieutenant in Vietnam and, for the first time,

he was leading his platoon into combat. As they approached the front lines, the captain

told him, "Take that hill." "That hill" was where the enemy was dug in with a machine

gun. There was no time for a discussion, so Ben told his troops, "Follow me," and he
 63

started running up the hill. He told me that all he could think of as he ran was not

whether he would get shot or what would happen if he got to the top. The question that

kept running through his head was, "Are they following?" It turned out that they were

and they took the hill, but Ben told me that he learned right then that the two key

ingredients of leadership are getting out front and trusting your troops to follow.

So leadership is intensely personal. It is not something that you can order and it

is not something that you can measure, evaluate, and test. It is a property like loyalty or

trust. It cannot be bought or inherited. It must be earned, and earned through long and

often painful experience. It can, however, be lost in an instant. All you need to do is to

stop behaving like a leader. Then your followers will stop following. They may continue

to obey you, but you will soon sense that you no longer have their loyalty and trust. You

can only tell if you are a leader by what happens: you are leading and they are following

their leader.

What sets leaders apart from everyone else is that they have followers, and what

attracts followers is a challenging and rewarding goal. It is impossible to be an effective

leader without being committed to a cause that animates you and motivates your

followers. Your energy and drive then come from your personal commitment to

accomplish this objective.

This can't be just any goal—it must be something that you feel strongly about and

will strive to accomplish. You must be sufficiently committed to this goal so that you can

exhort your troops to achieve it, in spite of all obstacles. While development projects

can have this character, that is not always the case. But, as we shall see, it is usually
 64

possible to excite creative people about the challenges and rewards of producing

something entirely new and original.

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Aaron Jospeh T. Duremdes

Management

Management defined as managing the coordination and organization of business

activities. This typically includes the production of materials, money, and machines, and

involves both innovation and marketing. Management is in charge of planning,

organizing, directing, and controlling the business's resources so they can meet the

objectives of the policy.

During the 200 hours practicum of the 4th year business students we were able to

acquired ideas and strategies on how management should be. Honestly, it was a tough

job. Dealing with different challenges such as policies that somehow made all of us

think till our brain becomes empty. However, it made all of us realized that such factors

can be a barrier to a good business operation. Therefore, a good planning and strategy

is a must.

Moreover, we were also able to maximize our resources to avoid wasted

materials and cost that will result to losses. A resource is uncontrollable. Prices always

change over time. Sometimes the availability can also be a problem. Luckily, we were

able to adapt to these situations and somehow lessen the possible losses that may

occur.

Directing is somehow tiring and kind of boring. Workers don’t like if they were

abused by positions. Although some of us has a specific position. We make sure that

everything is under control. Assignment of task was the best solution that we had come

up to avoid such problem within our working place. If there are misunderstandings we
 66

sort it out within the day. Everyone was cooperative and has initiative therefore directing

was slightly used.

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Jannine Mae Galeos

Management (Reflection)

As the secretary of the group, I have to keep reminding them to be on time and

show up to their designated time schedule, I have to prepare for the worst and hope for

the best, even though I lack authority as a secretary, I do comply the duties as the

secretary of the group. Most importantly, I learned that managing is not an easy work.

To achieve your goal in the business you have to be effective at your work and you

need to bring new ideas/concepts to the table. The most important fundamental ideas in

management are leadership, personality, motivation, decision-making and

communication.

In my experience, a good and effective leader should know how to monitor and

facilitate its employees/team to fully used their potential to attain the objectives of the

business. Also corporate culture can be one of the factors of managing a business

which refers to the behavior of the members and the environment of the workplace

which they will provide to the public. Overall it was a great experience since I got a

chance to think in terms of all the factors which are responsible for the success of our

merkado.
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Jeline Panizales

REFLECTION IN MANAGEMENT.

My experience in Merkado 2020 in terms of Management, I felt that it was a

successful group which taught me a lot regarding how to function in a tesm and as an

individual. In managing a business there's a individual who shows leadership and that

leadership skills has a potential to influence behaviour of others and all of that i've seen

in my team. We always follow instructions and obeying rules and regulations that we

come up before the blueternity started. By managing our business it also required to

develop future visions and to motivate the team members to want to achieve the

visions. What i've admired in my team is that we functioned as one, We are co-fuctional

persons that in terms of Production,Purchasing and Cashier they know to do and has

initiative to help without asking a favor. What i loved the most in my team is that each

one of us always keep their team informed whats happening, both present and future

along with any obstacles that stand in their way. Our team has a good communication

skills and has ability to challenge the status quo. We have our style of doing things and

problem solving and are usually we are the one who think outside the box.
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Airold Ragas
Management
As an Financial Management major I have learned to manage such as business

that we are operating for. and appreciate all the possible things happened. as what we

expected for we came up to the time of learning all the possible aspects needed in the

management of the business. we as a team contributing some ideas in order to manage

the certain things to our business.

I have always been a thinker, but throughout my work, i have greatly sharpened my

critical skills. I learned to continuously ask why on many different levels. and i challenge

myself to every task being given and in so far i can easily manage over it.

It was difficult to identify gaps in my knowledge as an financial student only because i

feel i have learned so much. I feel that I have largely expanded my ability to manage

and deal with people.

Pertaining to all it was that overwhelming experience of managing such business we as

a team conveniently contributing such ideas and looking forward to what was happen

next, and somehow there are also some challenges that we encounter but we always

just look over it what is the best and common solution to cater those problem.

Another also in management we also benefited so many different forms managment

strategies that can also applied in our personal aspects. and after learning about some

forms of management strategies and elements of techniques i may can choose of what

is the best format that will be helpful in my part.

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Lesley Jean Rondina

Management
Our professor assigned the members regarding our positions in the team. One is

assigned as the CEO, CFO, CMO, some are for purchasing officer and for production

officer. Handling a starting business a very hard task. Because you have to become the

most understanding person in the team. You have to consider the strength and

weakness of everyone for you to know if where that person will be assigned when the

time comes that your business will start operating. Some were assigned in the cashier

portion, preparation portion and production portion. But in the long run, I have seen the

flexibility and initiative of the team I am belong. Like in the scenario of not all members

are present because some have classes and personal issues in life. The stall is very

busy and experiencing lack of manpower, instead of focusing on the task given, we do

multi tasking for us to be able to served the needs of the customer and satisfy them.

The management that we have applied is very effective. Because everyone is doing

their tasks and responsibilities very well and organized. Each members has contributed

a lot during the merkado. 200 hours of operation makes us all think that having or

handling a business can change our lives. As a student-mommy, I have experienced

difficulties in managing my time because I have to wake up early and go home late. I’m

waking up early because I am the one who will take a bath and make “subo” during the

breakfast of my little boy. Also, I have to wake up early because the blueternate flower

is only blooming every morning, as long as there is a sun. I go home late sometimes

because there are times that I am assigned as the cleaner of the stall and assigned as

the one who will tally the sales. I felt really guilty to my child because I admit that I have

missed time bonding with him. I make “bawi” to him in the weekend. Good thing is that
 71

my teammates were always there to understand me and make an effort that substitute

my task when I am not around. Even though I am experiencing in managing my time,

still I perform the assigned task to me and my team are also helping me. Through the

help of the leadership seminar we have attended, all the learnings from those seminars

were being applied and used. Even though in our own little way of managing our

business, we have able to make it successful up to the last day of our operation in

business. Before, I am only thinking that attending those leadership seminars are just

for the benefit of my completion. But later on I realized that those seminars were very

useful and I could be able to apply it in the real world and real scenario. Merkado 2020

has been so helpful for us to be able to become exposed and faced the reality after

being a student. This business exposure is a stepping stone of every young

entrepreneur to become closer to their dreams in having their own business in the

future. Looking forward to make business with my team.

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Melca A. Siega
Reflection Paper

Management

Management means not only handling your people/subordinates but also

handling and managing yourself too. It is essential to every business to have an

effective leader who applies such systematic practices to handle people.

Along the duration of our Merkado, I learned that managing your people has an

impact to the business itself. Mismanagement will eventually leads to loss. Good

management will then surely results to the success of the business. I would proudly say

that the Blueternity Team was in the good management side because the team got

plenty of awards last closing/awarding ceremony. This only implies that we were team

players within our group. Each has its own individual strengths that were perfectly

loosen the gap of the weaknesses of the others.

We did manage our own selves during the Merkado. Being responsible and

having initiatives had been applied. Nevertheless, one leader is essential but being a

leader with in you is also important.

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REFLECTION
Marketing Aspect
 74

Kent D. Cabanes

Reflection Paper

Marketing

Blueternity products were marketable enough during our merkado 2020, even

though not all of us have a confidence to convince a customer to purchase our

products. We came up to a marketing strategy to maintain our sales by giving them a

loyalty card so they could avail a free drink on their 10 purchase of our offered drinks.

Every time the school have an event, we make another marketing strategy so we could

maximize our profit and maintain our customer’s because marketing is a huge factor in

business. We create a Facebook page to promote our products and give flyers to our

co-student inside the school to be well-known business inside the school. One of our

marketing strategy during the 200 hours merkado 2020 is free delivery but within the

school only, so that a busy student who don’t have time to visit our stall at canteen but

wanted to purchase our drink we deliver it to them. Marketing development is the key to

become a successful business in a competitive market.

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Lordjena Castillo

Marketing

Marketing is one challenge for every business, you have to think something that the

consumer will attract to your product. I thought marketing is all about who can talk faster

and can promote easily but it is all about deep psychological understanding of customer

needs. For me as I started my own business I learned that marketing is a conversation.

Marketing is the conversation that starts between two people who don’t know each

other well great conversation lead to understanding needs.Great insight like this lead to

amazing products delivered through engaging customer experience. Marketing is not

just promotion. But rather, it’s about learning and understanding more about your

customer. Your marketing strategy will help you to figure out exactly who you’re serving

and how you can align your business plans with your customer needs. This will not only

result in happier customers but also drive revenue, and ensure you’re heading in the

right strategic direction for both short-term and long-term growth.

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Jessa De Los Reyes

Marketing
I am pleased to reflect on my experience this semester in Management 424

Mercado 2020. I feel that it was a successful class which taught me a lot regarding how

to function in a team and as an individual. I have always been one to persevere through

difficult situations and challenge myself by undertaking complex tasks. If I am presented

with a class that doesn’t meet my intellectual standards I have a habit of making things

harder than they have to be in order to challenge myself. It could developed my skills

about a business idea. It is important to entertain people and satisfy customer needs.

Thus, marketing is the core of the business and it is a reflection of knowledge. In our

business, we have a marketing strategy to meet our goals. Therefore, it allows us to be

flexible in our task and it gives us fun to be creative and determined to finish and meet

our goals. I learned to do things step by step, It is like you must know your target market

and what your target customer subjective before you could provide everything.
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Renn Marc Dorinila

Marketing

At the beginning of this class, my main objective was to learn more about finance

and learn about marketing. When I first review the class’s syllabus, I thought this class

would be mainly about marketing and investments, but I was glad to find out that the class

was about more than just marketing. I would definitely say that I met my objectives and

even more because I learned more than I was expecting. This class helped developed a

security about a business idea that was on my mind for years which is having my own

private investigations company. Before this class, the idea of owning a company about

something that I am very passionate about was only just an idea and I never thought I

could have been developed a possible marketing plan. Thanks to this class, I was able to

work on a marketing plan for my dream company. Even though some assignments were

difficult, I felt that no one could have taken the excitement I felt every single time I sat

down to work on my own business marketing plan. It is important to mention that my

feelings about this great experience are truthful. I understand that some people might say

that most students are not truthful when given feedback about the class or the professor

because they fear retaliation, but I am very happy to say this is not the case for me. I am

a very truthful person and I say it how it is, I am not the type of student that would write

something nice to make the professor feel better or to avoid a low grade.

When we started, “fake it until you make it” would have been a good phrase to describe

our company. Being great at marketing gave us an advantage of presenting ourselves

as bigger and better than we were. Yes, we stretched and exaggerated our past and

associated success to prop ourselves up.

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Because of our lack of experience and maturity, we were inconsistent in

delivering what we promised. We also alienated many potential great clients because

we elevated ourselves so highly. Many prospective clients who wanted to work with us

saw our presented pedigree and thought they could not afford us. It’s ironic how our

efforts led to us losing potential great clients and attracting clients with expectations we

were unable to deliver on. As we progressed in our journey, and our company

transformed, we began to ask ourselves, what is marketing? At the time of asking this

probing question, we began to look at how marketing worked and the results it

generated.

In marketing, we are attempting to communicate our message. Our message

attempts to communicate the value we bring to market. The value we offer comes from

our experience and beliefs. Our beliefs come from who we are and how we see

ourselves. From this string of thoughts, we realize “Marketing” is a reflection of who we

are. It is an external manifestation of our identity. How we communicate who we are to

the world around us tells others who we are, and it goes further than a website, social

media and search engine rankings.

When “Marketing” is a reflection of who we are, it causes us to realize we cannot

market well unless we know well who we are. In reflection of our company’s early years,

we did not know who we were, and it caused our company to re-discover it’s identity in

2011. From that point, we realized how important this was and our company’s vision

shifted. We started as a company helping fulfill marketing projects, and we changed to a

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company helping other companies discover who they were. Marketing became a result

of our foundation building efforts.

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Aaron Jospeh T. Duremdes

Marketing

Marketing was really a challenge for us. Thankfully, we were able to acquired

principles that we learned during our marketing subject. We were able to maximized the

things we learned such as using multi-media as a sort of disseminating information to

have an edge in the market. We improved labeling and packing to attract consumer with

our drinks that were “Instagrammable”. Trends existing in the market were our basis in

creating our products. People nowadays like products that they can brag with their

friends and with their social media accounts.

During our first two weeks and two days in operation we were able to capture the

market’s attention and made a good impression in the students. However, because we

took our examination in the last week of January, the store was temporarily closed and

the time when we came back we suffered losses in first week of operation. It leaves us

no choice but to create something to capture the market’s attention again. It was

February and we based our marketing strategy in celebration to the love month. We

released our first ever theme named “#TERNATEKILIGPERODIJINOWA”. We also

provide free bookmarks and placards for Selfie and Groupie that has “Hugot Lines”. It

was a success for we recovered from losses and gain edge again in the market. We

created also a photo contest and push them to join for the reward is a whole body

massage sponsored by one of the existing massage parlor in Gensan.

It was really a good marketing experienced for the team. We were able to come

up such creative strategies that help our business to get in track again. Day by day the
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team shares idea on how to increase sales and possible improvements that can be

considered.
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Jannine Mae Galeos

Marketing

Nowadays marketing places a huge role in the competitive business world. The

main objective of marketing is to increase the business’s sales. So if the business’s sale

increases, there is a great chance to maximize the business’s profit. In other words

marketing is helping a certain business to maximized their profit. As a consumer, I

observed that businesses are analyzing and gathering information about what would a

customer would demand and need that a business can provide for them.

So as we students got a chance to sell a product, we executed some strategies

to provide a product to our customers that won’t affect the policies/rules that our school

has implemented, such as our cups which brought some issues but was solved

immediately. We also have provided a promotional material such as flyers, and we also

promote our product through social media sites. We also provide free delivery services

to our customers that can’t come to our store. We also have come up with the idea to

market our ice cream not just inside the canteen but around the campus as well.

Overall, I think that we have executed and developed a pretty good strategy to market

our product that would be attract our customers.

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Jeline Panizales

REFLECTION PAPER IN MARKETING

Nowadays, Marketing takes a huge role in competitive business world. This is

how you sell the product, how to convince the consumers why they need or to buy your

products. Marketing also it is how you advertise it because the main objective of

marketing is to increase your business sales. If the business sale is increased, there’s a

great chance to maximize your businesses profit. As I witnessed within our group, my

co members are good in marketing, they are also a hardworking, creative and

responsible young entrepreneurs. They know how to market our products and know

how to communicate and explained the benefits of our main ingredients. We used

online marketing or E-commerce as marketing strategies, to gain consumers and it

helps us to promote our products not only in NDDU but also outside of our campus. We

used Online Marketing to maintain its competitiveness through extensive marketing. We

are confident that our products marketed itself are through innovation that makes our

consumers curious to our products we used that as a strategy to improved our sales.

Over the past few weeks, I have been able to learn so much about this practicum and

about how it will apply to me in the future.

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Airold Ragas
MARKETING

Over the last 200hrs in Mercado there have been advances in marketing outlets

and strategies. one of the more recent form is referred to as social media marketing.

this method can be defined in the number of ways, but one of the best description came

from a marketing experts. and also we can do such a marketing trough face to face

market we promote our product and services as fast as we can to have a much

customers.

Today's marketers have adopted the various marketing strategies to perform in the

market just to obtain profit, as a part of a team we adhere just to innovate our products

and services to attract new customers. we also posted on social media such promoting

our products to be well known in the market.

The big debate over social media marketing is that it could be relied in the new

marketing standard compared to the traditional marketing approaches . others

challenge that this outlet just a complement to a strategy the uses of multiple marketing

methods . regardless, social media marketing is an effective form of marketing that

needs to be embraced especially if the target audience includes people who are

younger than 40.

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Lesley Jean Rondina

Marketing

Merkado 2020 has a big impact to me and also to my fellow classmates who

enrolled in this subject. I've experienced toughness in selling our products which is

vanilla ternate and mango ternate ice cream because some students are not that fan of

eating ice cream. Also, I've experienced a hard time in selling our drink ternate because

there are times that the raw materials we needed in the production is not available.

Some students wanted to taste all the flavors that we have but due to inavailability of

the raw materials needed, students tend not to buy because they have already tasted

the flavors available in our store. But those toughness and hard times that we have

faced, still blueternity is doing well in satisfying our customer with our products. In

selling our ice cream, it is not that easy to persuade customers. But using our little way

in persuading customers, we gain new customers and loyal customers that are always

there to support our products. We do marketing strategies such as posting on social

media for advertising our product and posting announcement regarding our business,

giving freebies (bookmark), providing loyalty cards to our valued customers and

rendering free delivery inside the campus with no minimum order needed. We also

gained interested investor that they wanted to franchise our business, but we are still on

the process of completing the requirements needed in this subject and the requirements

needed in entering business such as being registered in DTI. Despite of the hardships

that we have encountered, I am very much thankful that I belong to blueternity team.

Because our team is very strategise even though we just entered in business
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Melca A. Siega
Reflection Paper

Marketing

In this aspect of business requires to unleash your creative juices, unique ideas

and immeasurable concepts. You have to deal not just the people inside of your team

but most importantly to your customers also.

The marketing plan of the Blueternity Team was quite unique among the other

groups of Merkado 2020. We were able to conceptualized online promotion such as

Blueternity Facebook page were we encouraged our valued customers to avail our

products. We also had a photo contest were there the winner will win free massage.

Such marketing strategies applied by Blueternity Team develop our creativity as a team.

The marketing strategies we had were all based on the trend of the society such as

social media even the Corona virus outbreak. We were able to market our lime and

lemon flavored drinks.

Luckily the team had members who excel in marketing the products such as our

ice cream. May or may not all the members excel in marketing aspect but later on were

able to practice such skills and then used it as their strength.

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REFLECTION
Production Aspect
 88

Kent D. Cabanes

Reflection Paper

Production

During our 200 hours merkado 2020 duties, as I observe our team don’t face a

big problem when it comes to production because as we start the business we calculate

the needed fund or how much each of as contribute to purchase the needed equipment

or things so our business can function on what we really desire. During the production

space is a factor because our stall was not big enough to cater a lot of customer’s. our

team provide all the things needed on production but we face problem when our raw

materials to provide drinks are not enough because we experience shortage of raw

materials and decline a customer to purchase a drink. So we do forecast and do bulk

buying of raw materials to cater a lot of customers during peak hour and our team

production was very good because of our leader, who led us to be more punctual

individual during business hours and all of us have a role on the production.
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Lordjena Castillo

Production

Production is takes inputs and uses them to create an output which is fit for

consumption – a good or product which has value to an end-user or customer. And

process of combining various material inputs and immaterial inputs in order to make

something for consumption. It is the act of creating an output, a good or service which

has value and contributes to the utility of individuals.In our group we have an strategy to

divide everyone in two groups, which is Team A in will be assigned on frontline while the

Team B at the back. In order to maintain everything we have to make sure everything is

under control and we have to prepare all the materials that needed in the store. When

you are in Team B you need to work hard and be flexible to make sure all the product is

complete. We need to balance the production team in order to balance our goals. In our

team we make sure that we enjoy our work and learned something that we bring to our

life.
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Jessa Amor Delos Reyes

Production
In production or planning about our product is so difficult to us because we want

to create a new to the markert. And It utilizes the resources, allocation of activities of

employees, materials and production capacity in order to serve different customers. We

have a production panning in order to organized and prepared well. We decided to have

bluternity as our product. Because its new to the market and uniq. When we start our

business practicum in our subject we have a vision and goal to achieve. Hence, I have

come to understand how businesses are being managed. We must serve our products

creatively and delicious. Experiencing Mercado is a good lesson for everybody to learn

from. Also, it has given my best exposure of my course since we have to manage our

time. Team work or group working has given me awesome experience in working with

different people and I hope this would be helpful in my future business. Moreover, we

experience problems and shortcomings in the production yet we still do our best and

make a move to solve the issue. But then, we become more productive, expert in the

task and discover new potentials. It really helps a lot to learn new things and apply it in

our future business.

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Aaron Jospeh T. Duremdes

Production

Production refers to the processes and methods used to transform tangible

inputs and intangible inputs into goods or services. The production team actually did a

good job dealing with challenges that the team faces during the practicum. Actually, it

was really a tiring job. Preparing all the things needed in the evening and in the morning

was serving drinks. Thankfully, we were able to overcome it.

One of the challenges we faced during the practicum is how can we serve drinks

in a least possible time. During the day, there were actually three peak hours that we

faced. Demands for our products were actually high and we fail to meet that demand

due to time constraints. Senior high school was actually our biggest market. During their

break time people rush to our store and orders came rushing in that we can’t able to

accommodate and some students are discouraged to order for they need to wait in a

long period of time. Though, we have an efficient production team we still failed to meet

the demands. If we were going to compare Milk tea shops from us, we can serve three

drinks faster compared to Milk tea store. Frankly speaking, we did nothing about this

issue for it is too late for we only have 200 hours. However, we realized that production

should be equated in the existing demand to avoid possible losses.

The production team always makes sure that we served quality products to meet

customer’s expectation. We maintain exact measurements and the raw materials we

used are freshly extracted. Moreover, we also divided the team into two groups. Team A

will be on the frontline while Team B will be on the back. Team B is assigned in food

preparation. They are the ones who will extract juice to lessen the work of the Team A.
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On the other hand, Team A is the ones who mix the drinks and serve it on the

customers. In case that there will be no production team, we ensure that other member

knows our job. Everyone enjoys the experiences that we had during production. We

learn from each other and overcome together the challenges that we taught we cant

overcome.
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Renn Marc T. Doronila

Production

Production, the creation of products and services, is an essential function in

every firm. Production turns inputs, such as natural resources, raw materials, human

resources, and capital, into outputs, which are products and services. An important part

of operations management is production planning. Production planning allows the firm

to consider the competitive environment and its own strategic goals to find the best

production methods. Good production planning has to balance goals that may conflict,

such as providing high-quality service while keeping operating costs low, or keeping

profits high while maintaining adequate inventories of finished products.

Over the course of 8 weeks, I was able to fully understand operations

management and allthat it encompasses. Throughout the course, I was able to learn

about supply chain management, the impact that operations management has on

current issues within a business. Project management was also something in which I

found interesting, as this is what holds operations management together, however, the

decision process of humans is the ever-lying effect in all operations management.Due to

the complexity of operations management, there are many things that encompass it,

which means there are many facets of learning. As time has gone on operations

management has changed and the future looks really good in regards to new ways of

collaboration and the increase in technology yet managers know there will always be

underlying issues to address. Theincrease in the variety of organizations has changed

immensely and some of these organizations are changing the way the world does

business.
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Jannine Mae Galeos

Production

The production team in our group were exceptionally talented and well-

managed. At the first try of making our products we have encountered errors and

mistakes that are not inevitable, since we have no idea how to make these products at

first, but with determination and persistent we have accomplished the success of almost

perfecting our products, although there are some flaws but we still working on it. In

production is quite tiring and energy-draining because you need the fruits to be

squeezed and make them with your bare hands. But we have flexibility and compassion

of what we are doing, because we try to think that it’ll be over soon and it did, and it’s

saddening because we have grown bonds/relationship with one another. Because all

those tiring days and sleepless night were all paid off with our successful business. We

have gained knowledge and trust that can’t be removed from us.
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Jeline Panizales

Production

As what I observed in our operation we ensured that we are efficient in resources

such as labor, raw materials, capital and also equipment into a valuable output like

product and profit. There is no business organizations like to waste their resources

because businesses gain money. Every business activity like Blueternity required a

product.

I must say that the Blueternity is a flourishing business in terms of production

because of the planning what makes our business different from other businesses. Our

originality has own unique and distinct concept and recipes.

Before anything else, each one of us shows concern to our team mates. We

understand each situation and we give our best service for our customers.
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Airold Ragas
PRODUCTION

The concept of production is all about to create products and services to all

especially to the customers. and promotes planning strategy to compete of all the

competitors in the certain environment. and it would help to balance the concerns of

goals and it may help also to have a much more profit of a certain business in the long

run.

In the 200hrs of service i may be totally understand the production process on how to

cater the needs of every customer and also the deliberation of labor may also occur and

it was not just to easy to handle but we learned to have a patience to undergo those

matter. it was a good experience of mind because i know a lot of things especially in

production that time should be more important at all when creating or doing the task.

As the time becomes more convincing the need of operation also should be upgraded

due to such the occurrence of new technology which is in favor in the part of us

especially when doing the job it helps to have a easiest way and could also becomes

faster to cater the needs of all the customers.

The big impact to the business in the production is huge because it may matter most

what is being produce to the market and also it could determines the profitability status

of the business once it becomes failure to do so the sales should be affected, so

therefore learning the production is not easy way to handle.

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Lesley Jean Rondina

Production
The production team that we have in blueternity is really amazing. At first, I feel

hesitant of each member of my team because some of them are just casual friends and

not my closed friends. During those times, I prefer to become part of the team wherein

my friends were there. But Ma’am Che still wanted to make it draw lots for the fairness

of everybody. I belonged to the team in where there are only few are my friends. I felt

sad but I think it is okay.. We come up to the idea of combo meals, with a match of rice

mixed and a undecided viand. But we observed that other groups were engaged in

foods. We decided to make a drink with a combination of blueternate flower. At first, we

are experiencing hard times because we do not have any knowledge on how are we

going to create our own version of drinks. We do experiments, product testing and trial

and error for us to be able to make it perfect because product presentation is fast

approaching. During our experiments, we experienced a hard time because we cannot

achieve the taste and preference that we want. I think it takes almost 2 weeks for us to

be able to make it. Making it achieve takes a lot of trial and error in order for us to say

yes, it is okay. We also felt worry if our product will pass to the validators and judges.

We just only think that we do our best, if it’s not enough, we have to do it double time

because it is lack of time to prepare because christmas break is near. During our first

presentation, we felt really nervous because our product could take minutes to prepare

especially if you didn’t master the measurements. But the presentation is success. We

have seen in the validators that they like our product. There is a minimal negative

comments, but more on positive. We felt happy and pleasure for those positive

comments. With the help of research, open for ideas and suggestions, we finally create
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our own product. In my experiences in production, it is not that easy. Because the

materials are needed to be pure and you need to squeeze all the fruits. But my team is

very flexible and has a passion and love of work. Instead of thinking that it is hard, why

not to try it. Right? Later on, all of us could do multi task and become flexible. Finally,

long wait is over, it is University Week. It is finally the awarding ceremony. We do our

very best to make our validators feeling wow. And we didn’t fail, the said wow. We got

the highest sales and almost all of the awards. We felt very happy and thankful because

we know that we gave all our best to make it successful. This success wouldn’t be

possible without the guidance of our professor. Thank you Ma’am Che for always

believing in us that we could able to do it, for the advices and patience you’ve given to

us. Big thanks to our Lord God that He is always there to guide and protect us that we

have able to make it successful. And a kudos to my team because we are doing well,

organized and has the power of cooperativeness. All our hard works and sleepless night

were all paid off.

 99

Melca A. Siega
Reflection Paper

Production
Innovation comes with production since whatever the idea of the innovation it is

followed by the production or the making that idea into reality. By means of production

this is where that idea will come into life.

As to our Merkado, the production was quite my favorite task but then this is also

crucial because you have to master the measurements and the like. We sell drinks and

ice cream therefore cleanliness and accuracy is the top priority of the production team.

Moreover, the key factor that would make the production team a success is also the raw

ingredients that we used. From time to time we brought our raw materials a day before

or during the day. This is because to maintain the quality of our products simply

because our ingredients were fresh.

When you are in the production team you should commit your time and attention

since you are one who makes the product. In order to produce a quality product for your

customer, production team should unite and cooperate with each other on order to meet

the standard of the market as well as to serve the product in short period of time.
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REFLECTION
Financial Aspect
 101

Kent D. Cabanes
Reflection Paper

Financial

When it comes to financial all of us can relate to that because our team consist of

a financial management student’s. Finance is a huge factor on a business because it

needs a lot of time to calculate all the inflows and the outflows of cash, expenses, cost

and also the profit. We don’t have any problem relating to finance statement because

we an assigned a group mate who focus on this. We encountered problems if the cups

and sales is not match that’s the time our eyebrows meet because we base the sales on

the cups. We calculate how much is the needed expenses if the school has an event or

hosted an event because we expected that we need a lot of raw materials to produce a

lot of drinks and we do a lot of financial staff during our 200 hours merkado 2020.
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Lordjena Castillo

Financial

A business financial statement shows the sources of a company's revenue, how it

spent its money, its assets and liabilities and how it manages its cash flow. Finance is

big part in the business you have to make sure the sales book and the the money is

balanced. Everything should be record the outflow and inflow of the money. In our group

their is one person who is assigned to our money we make sure that the receipt of what

we purchase is recorded. When you are the one assigned in the finance you have to

make sure the money and records is safe. We thankful that everyone of us is

cooperative and understanding about the inflow and outflow of our money. In not about

having a lots of money. It’s knowing how to manage it.

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Jessa Amor Delos Reyes

Financial
About in financial at first we really really need a big amount in our business

because our cups is one of the big amount/expenses we have. But we also adjust the

cost of our product to obtain the allowance of the students in NDDU. Finance helps

management gain a clear understanding of the company’s current financial position,

particularly whether the business is profitable or not. In our business, it benefits from

throughout financial planning to guide the business steadily down the path for future

growth. In our business analyzing financial statements is an important part of decision

making because finances and the valuation of profits and issues are the most important

drivers in business. We need to monitor the expenses daily and the sales from time to

time. It has an inventory which locates whether it was sold or not or if it is already

damaged. Everything must be in control and properly monitored. Moreover, we all know

that business run money and so the financial aspects of our business determine

whether we earn profit at the end of the day.

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Aaron Jaspeh Duremdes

Financial

Finance is the foundation of the business. Purchases made possible only

because of finance. The finance officers of our team really did a good job and maintain

the transparency among partners. Every day the finance officer, purchaser and chief

production are required to send report of sales less expenses and total cups sold that

must be equated with the number of sales. We make sure that there will be no

resources that are wasted for inventory is considered as our frozen cash.

Furthermore, inflows and outflows are closely monitored in order to avoid

monkey business. Though, we trust each other but money can be deceitful. The

purchased of goods are assigned to people who are experts in the fields to lessen cost

of materials bought. Finance officer always make sure that the cash are efficiently spent

to achieve the main objective of the business which is profit.

The burden of being a finance officer was heavy that is why the team always

offers help and some members volunteer to cash count and to tally sales in order to

lessen the workload of the finance officer. It was amazing that the members collaborate

effectively and work as a team that made all of us close and enjoy what we are doing.

Moreover, challenges when it comes to finance are always constant. Whether we

like it or not there will be challenges. The thing is how you would deal with it and make

use of the situation. What we did as a team is we deal with it together. Decision or

actions were not made by the finance officer but made by all of us to create more

effective and efficient finance strategy.

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Renn Marc T. Doronila

Financial

It requires that at the minimum, any business should prepare four types

of financial statements. Balance sheets indicate what the entity owns and owes at that

particular point in time. They include assets, shareholder’s equity and liabilities. Assets

are the properties that the companies own that can be valued while liabilities are the

amounts owed to others. Income statements are different in that they only indicate

what the business entity has made and spent over a fixed period. Cash flow statements

show the exchange or flow of cash between the business entity and the economy. The

difference between an income statement and a cash flow statement is that the latter

shows whether the company has generated cash while the former indicates whether it

has made profits. The statement of shareholder’s equity shows the changes to the

equity component of the balance sheet that includes shares, retained earnings and

other forms of comprehensive income.

Analyzing financial statements is an important part of decision making because finances

and the valuation of profits and losses are the most important drivers in business. They are

used to diagnose weak spots in the current strategy in an internal perspective, key in making

decisions to mitigate against such losses. For external decision makers, reviewing the

components of financial statements are important in ascertaining the situation at the company,

the effects of the current decision-making strategies. Such analysis can only be relevant when

relevant data is used and when such data is correct and timely. The decision-maker should then

make the decision in time to reinforce the strengths and solve the weak spots. Decision makers

who use financial statements assess the effects of certain activities to reveal the internal forces
 106

within the company. They look for ways of increasing the effectiveness of the activity and the

productivity of the factors of production. Horizontal analysis of financial statements is where the

components are compared over a period. Vertical analysis, on the other hand, is whereas

component is compared to another within the same accounting period

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Jannine Mae Galeos

Financial

At first I was hesitated about paying such large amount to our business, I have

second thought that aren’t fitting, and it’s quite hard for me to believe that we just spent

a large amount of Money on our materials. I also have some doubts with our CFO but

all those doubts were gone as she have shown her skills when it comes to facilitating

and monitoring the inflows and outflows of the money, she also informs us of our daily

expenses and where were this expenses come from. She shown that she is worthy of

the role of being our CFO. As I have observed money is everything when it comes to

starting a business, you don’t need a lot of money to start a business, it’s about how you

manage and monitor the inflows and outflows of your money, and allocate where you

will use your money, prioritized where these will be used. Handling money is quite hard

especially you aren’t careful enough, you might end up spending a lot of unnecessary

things, and also one of the main way to monitor your money is to record all the inflows

and outflows.
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Jeline Panizales

REFLECTION IN FINANCIAL

Become a Chief of Finance Officer of our team it is a previledge for me to take

this task, especially when handling money of our business. I was doubted myself at first

if i can do it or not, because I have to be ready for almost anything. I have to prepare for

the worst and hope for the best (...again with the cliche’s). Most importantly, I learned

that being a CFO is not easy work or role sinced there's a lot of requirements from other

subjects at the same time i wrote sales reports to be passed, sometimes there's a

scenario that the money i handled and the inventory report are not the same. This

scenario gave us challenge how to overcome it. I reflected that this role become easy if

you care about your job. To achieve any sort of advancement, you have to be effective

at your work and you need to bring new concepts to the table.
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Airold Ragas
FINANCIAL

Since we contributed such an amount to our business which is the Mercado

2020, I have a sense that this would be much interesting to us being a student to handle

such business with the large amount of capital we contributed, but also there is a

challenge to us pertaining to our product because in the first place it was costly and the

price in the market that we give is lesser so i was totally confused how it may be

become profitable if the market could not desire our product.

In the past weeks there are ups and downs to our sales but we continuously provide the

convenient product and services to our customers, the daily expense to produce

product is to much higher as the daily operations goes. and it was not just easy to

handle we also have other ways to lessen our expenses day by day we create of buying

product needed for the operation in bulk to have a minimum discount.

In so far our COF could handle very well the financial needs of our business and

keeping our profit safely by that we are always have a courage in doing the task each

and every day operations and becomes motivated because they are transparent to us

about the financial status of the business.

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Lesley Jean Rondina

Financial
Financial With regards to financial, the moment that we enter and start our

operation, we have an equal starting capital which has a total of 1,800 (including our

uniform). At first, I feel a little bit shocked because in some groups, they are just

collecting a 1,000 pesos for their starting capital. 1,800 for me is huge amount of money

that I could be able to buy 1.8 kilograms of milk and a 60 pieces diapers for my baby.

Sounds funny but it is true. I do not have any choice but to pay the starting capital in

able for us to start our operation in business. When we break down the money, the

materials that we have is just fit with the contribution we pay. Therefore, I have conclude

that in entering business, we should always have to consider money as the main source

of everything for you to be able to operate your business. In our financial status, I have

seen the transparency of the inflows and outflows of the money. Everyone is aware if

where money being used with the corresponding receipts used as the support. Being

transparent to your fellow partners in business is very useful because you are giving

informations to them in order for you to earn trust from your partners in business.

Handling money is not that easy because you have to record all the inflows and the all

the outflows. But, through the help of our accounting subjects, we have able to balance

our cash on hand/bank and the expenses that we consume

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Melca A. Siega
Reflection Paper

Financial

This business aspect is one of the most crucial since you handle the blood of the

business; the money. Honesty should be embodied by a person who handles the

financial aspect of the business.

Stable and good financial flow of a business is a big advantage among the other

competitors in the business world. Of course you need to capitalize when engaging in

the business and as the business operation continues good financial flow should be

contemplate.

During our Merkado, I was also able to help our Chief Finance Officer with

regards to the financial aspect of our business. I would say it was not that easy because

everything should be accurate and balance. Nevertheless, it was a training ground for

us to familiarize financial aspect since we are Financial Management students, and then

eventually applied it to our future work or to our future businesses.

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Actual Financial Statements

This section presents the financial aspect of the company. It includes the source

and the uses of funds, budgeting plans, and stages of financing.

Total Project Cost

This determine the total amount of coast be spent by the proposed

business.

Exhibit 5
Blueternity

Financial Statements

This section presents the actual financial statement of the business. This

presents the income statement, cash flow statement, and the balance sheet of the

business.
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Income Statement

This part shows the performance of the business for the given period of

time.

Exhibit 6

Actual Income Statement

Cash Flow Statement

This statement of cash flow provides information about the cash receipts

and cash payments of the business during the operation period.

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Exhibit 7

Actual Cash Flow Statement

Balance Sheet

The balance sheet is the company’s assets, liabilities and shareholders’

equity at a specific point in time, and provides a basis for computing rates and

evaluating its capital structure. The Blueternity, it was assumed that the business

did not incur liabilities during the operation for two (2) months.
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Exhibit 8

Actual Balance Sheet Statement