0% found this document useful (0 votes)
293 views93 pages

Feasibility Study GoWine 2022-04-28

This document proposes establishing a company called GWPS Corp. that will produce single-serve, eco-friendly wine packaging. GWPS Corp. aims to make luxury wines more accessible to customers by packaging wines in single-serve portions at affordable prices. This will also allow customers to try different wines in smaller amounts before purchasing larger volumes. The company logo incorporates earth tones to represent the environmentally-friendly packaging. The proposal includes plans for operations, management, finances, risks and recommendations.

Uploaded by

MC Ivana Perez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
293 views93 pages

Feasibility Study GoWine 2022-04-28

This document proposes establishing a company called GWPS Corp. that will produce single-serve, eco-friendly wine packaging. GWPS Corp. aims to make luxury wines more accessible to customers by packaging wines in single-serve portions at affordable prices. This will also allow customers to try different wines in smaller amounts before purchasing larger volumes. The company logo incorporates earth tones to represent the environmentally-friendly packaging. The proposal includes plans for operations, management, finances, risks and recommendations.

Uploaded by

MC Ivana Perez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 93

GoWines: Single-Serve Eco-

Friendly Packaging
Technology

Submitted by: Thesis Adviser:


Ambagan, David Paul Prof. Conrado Bergantinos
Agbayani, Cesnan Angelo

Patag, Mark Mapua University

1
CONTENTS

ABSTRACT…………………………………………………………………………………………4
Introduction……………………………………………………………………………………..5
Chapter 1: Proposal………………………………………………………………………….6
A. Proposed Company Logo……………………………………………………….7
B. Trademark…………………………………………………………………………....8
I. Brand name and Logo: GoWines……………………………………….8
II. Product and Service………………………………………………………….9
III. Product Design and Specifications…………………………………….9
IV. Location…………………………………………………………………………..10
V. Descriptive Definition of the Product……………………………….11
A. Business Concept……………………………………………………….12
B. Competitive Advantage………………………………………………12
C. Target Market…………………………………………………………….12
D. Technological Concept……………………………………………….13
E. Business Model Concept…………………………………………….13
F. Value Chain………………………………………………………………..15
C. Short-Term and Long-Term Objectives………………………………….20
D. MIssion, Vision and Core Values……………………………………………21
E. Internal Success Factors……………………………………………………….22
F. External Success Factors………………………………………………………22
G. Feasibility Criteria………………………………………………………………..24
Chapter 2: Environmental Analysis………………………………………………….25
A. Political/Legal Factors…………………………………………………………..25
B. Economic Factors…………………………………………………………………26
C. Socio-Cultural Factors………………………………………………………….30
D. Technological Factors…………………………………………………………31
Chapter 3: Industry Analysis…………………………………………………………….32
A. Industry Overview………………………………………………………………..32

2
B. Michael Porter’s 5 Forces……………………………………………………34
C. SWOT Analysis……………………………………………………………………38
Chapter 4: Market Analysis…………………………………………………………….39
A. Research Design and Methodology…………………………….………39
B. Distributor…………………………………………………………………….……43
C. Market Projection……………………………………………………………….44
D. Demand Analysis and Projection…………………………………………44
E. Supply Analysis……………………………………………………………………45
F. Demand Supply Gap Analysis…………………………………………..…45
G. Price Study………………………………………………………………………….46
H. Marketing Plan……………………………………………………………………47
Chapter 5: Technical Study…………………………………………………………..…49
A. Level of Distribution Channel………………………………………………49
B. Supplies, Equipments and Furnitures…………………………………..49
C. Building and Facilities…………………………………………………………..51
D. Calendar of Activities………………………………………………………..…52
E. Operations…………………………………………………………………………..52
Chapter 6: Management Study……………………………………………………….55
A. Organizational Plan……………………………………………………..………55
B. Strategies and Programs……………………………………………………..59
Chapter 7: Financial Study………………………………………………………..…….62
A. Financial Assumptions………………………………………………………...62
B. Master Budget………………………………………………………………….…64
C. Financial Statements Analysis………………………………………………77
Chapter 8: Risk Assessment………………………………………………………….….81
A. Success Factors…………………………………………………………………….81
B. Risk Factors……………………………………………………………………….…82
C. Recommendation……………………………………………………………..…82
Appendix……………………………………………………………………………………..….88

3
Abstract

Studies show that there is no supply of wine by the glass in the Philippines yet and

GWPS Corp. would be the prime mover of the product. The purpose of this research is

to determine whether wine producers are willing to use portable single serve packaging

and an eco-friendly product. The wine with its unique packaging produced will meet part

of the demand from the growing domestic market, and part of the production can be

exported as the packaging will be 100% eco-friendly. The researchers used a survey

questionnaire to determine if wine producers are in favor of the proposal of the group.

After tallying the responses of the participants and analyzing the balances in the

forecasted financial statements, it is concluded that the value of assets, liabilities and

equity would improve over the operation period of the company if the actual sales would

exceed or match with the forecasted/budgeted amounts. It was also noted that the profit

or return would be favorable overtime. However, there are still recommendations that

could improve the operation of the company.

Keywords: single serve packaging, eco-friendly product, financial ratio

4
Introduction

Wine is an alcoholic beverage prepared from grapes or grape juice that has been

fermented (Saranraj et al., 2017). In fact, Boniface (2017) discovered that it is the most

often linked beverage with pleasure, celebrations, and festivals across differing cultures

in the world. Wine's worldwide production reached a maximum of 260 million hectoliters

in 2020 due to its surging demand and prominence in the contemporary era (Varia et

al., 2021). Numerous sorts of wine are produced worldwide, with French wines being

the most popular (Teissedre, 2018). The broad categorization of wines includes red

wines manufactured from whole grapes, white wines created from grape juice, and

sparkling wines, which are naturally carbonated white wines (Joshi et al., 2017).

Over the previous decade, the wine sector of business has grown substantially

which makes it progressively getting ingrained in urban culture (Duarte-Alonso, 2020).

De Uña-Álvarez and Villarino-Pérez (2019) yielded that global population growth,

changing demographics, and exposure to a new culture all contribute to increased

consumption. This situation is undisputedly favorable for new industrial units to be

established in the field because venturing in this business has a massive probability to

become profitable in long-term vantage point.

Analysts forecast that demand for luxury wines will continue to expand at an

annual rate of 8,000 percent for the foreseeable future (Cheriet et al., 2020). This not

only indicates that consumer demand for this category is expanding, but also that those

elite customers are expected to pay a premium for them. As a consequence, the cost of

the goods increases, eroding the purchasing power of ordinary individuals.

5
Christiansen and Marks (2022) established that wines, particularly those that are

naturally rare, are usually offered in bottles. As a result, their prices become

prohibitively exorbitant from the perspective of most customers. As a consequence, they

lack the financial means to acquire wines despite their desire to experience their

exquisite tastes and benefits. 

Proposal:

The creation of a packaging plant in the Philippines, which will supply unique

wine packaging solutions, is the goal of this project. A part of the wine produced in this

innovative packaging will be sold in the burgeoning local market, and a piece of the

production will be exportable due to the packaging's high level of environmental

friendliness and sustainability. There will be a total of five people involved in the

establishment of the wine packaging business.

The strategic creation of GoWines Packaging Corp. will be established to

implement the proponent's plan. GoWines Packaging Corp. intends to be globally

renowned for its world-class commodity of innovative single-serve wine packaging

solutions. David Paul Ambagan, Cesnan Angelo Agbayani, Mark Patag, and John Carlo

Ursolino are the corporation's creative proprietors. 

The goal of this project is centered on the process of resolving the expensive

prices of wines that are usually sold in bottles. In this light, the creation of a single-serve

wine packaging that may contain luxurious brands available in the market will make it

easier for consumers to acquire and experience them at inexpensive prices. Moreover,

this will also be pursued as a project to cater to the preferences of consumers who

desire to drink wines in smaller units as opposed to bulks represented by bottles.

6
Ultimately, another objective of creating single-serve packaging wines will provide an

avenue for consumers to firstly taste the several products in smaller units before

gradually making their decisions in eventually purchasing greater volumes should they

desire to do so in the future.

7
A. Proposed Company Logo

Figure 1.0 Company Logo of GWPS Corp.

The design of the logo symbolizes a minimalist approach to the carefully chosen

text from the inspiration of its brand name and the colors of freshly picked vineyard

grapes and a lighter color of the wine. Since the goal of this feasible study is to produce

an eco-friendly packaging for wines, the earthy tones used in the logo symbolizes

mother nature. As a whole, this represents the innovative packaging solutions that

GWPS Corp. will provide to its customers; Pure and Natural.

8
B. Trademark

I. Brand name and logo: GoWines

The brand name chosen by the advocates is inspired by the concept “to drink

wine on the go; anywhere & anytime” thus, the GoWines brand comes to success.

Figure 1.1 Brand Logo of GoWines

The design of the logo symbolizes a minimalist approach to the carefully chosen

text from the inspiration of its brand name and the colors of freshly picked vineyard

grapes and a lighter color of the wine. Since the goal of this feasibility is to produce an

eco-friendly packaging for wines, the deer symbolizes mother nature. As a whole, this

represents the innovative packaging solutions that GWPS Corp. will provide to its

customers; Pure and Natural.

9
II. Product and Service

The GoWines packaging provides an innovative solution to the single-serve wine

and ready-to-drink level. A portable wine glass innovated to consume premium

wines, whether it may be indoors or outdoors, a product that is fit for any setting to

be enjoyed with family, friends, and good company.

III. Product Design and Specifications

Figure 1.2 Product Design & Specifications of GoWines’ Manufacturing

Figure 1.2 Product Design & Specifications of GoWines’ Manufacturing

10
The Gowines’ state-of-the-art packaging is an easy-to-open and 100% high-

quality recyclable PET plastic, an ergonomic shape wine glass that is made from

bamboo fiber that resembles and touches like traditional glass. It comes with a re-

screwable lid that functions with double purpose, a cover, and a coaster. Each wine

glass is wrapped with a clean sheet that satisfies the wine and cocktails to be fresh

and retains the cleanliness of the glass. This product has a volume of 8.45oz

(250ml), measured with 5cm diameter from the top, middle and foot, and standing at

6 inches (15.24cm) height.

IV. Location

Figure 1.3 & 1.4 Main Office (252 Sen. Gil J. Puyat Ave. Makati Metro Manila)

& Warehouse (888 Industrial Megacity Taytay Rizal)

Figure 1.3 is where the proponents will conduct their procedures located at

Burgundy Corporate Tower, 252 Sen. Gil Puyat Ave. Makati City, while Figure 1.4

11
shows where the production and manufacturing would be observed in a storage facility

in 888 Industrial Megacity Taytay Rizal. At first, the proponents would be renting a 500

m2 space amounting ₱350 per square meters, a total of ₱175,000 that includes services

for storage, production, pick & packaging, monitoring & inventory cost from a third-party

logistics solution company that owns the storage space. The locations aforementioned

are strategically chosen as Makati is the principal city for emerging and established

corporations; the management would easily be approached by customers and partners

in the supposed locations.

While the warehouse’s position is also a vital decision for the business model of

the third-party logistics resolutions, it offers not only the storage space but also the

security required, most importantly the production and manufacturing of the products. It

was giving the proponents an expansion plan for the next five years, occupying up to

3000 m2 area if necessary.

V. Descriptive Definition of the Product

A. Business Concept

Bottled wines, especially those with a high degree of natural distinctiveness, have

long been standard practice. As a consequence, their costs have risen to an

unaffordable level for the majority of clients. As a result, working-class customers are

unable to afford wine, despite their desire to enjoy its flavor and health advantages.

The development of single-serve wine packaging that may include market-available

premium brands makes it simpler for customers to get and taste them at low rates. To

further respond to the needs of customers who like to drink wine in smaller portions, this

12
initiative will also be pursued. Creating single-serve packaging wines would

unquestionably allow customers to sample a variety of items before making a final

choice about buying larger quantities.

Using GoWines' revolutionary packaging process, the company's clients will get an

amazing product. It is the group's goal to design a product that would fit the needs of

today's consumers. As a consequence of the growing market demand for wine, offering

it in smaller quantities would make it more accessible to a wider range of customers,

increasing consumer satisfaction.

B. Competitive Advantage

In addition to being in the winery's market, GoWines is also in a specialized

category, which is the ready-to-drink category for wines—giving it a competitive edge.

Apart from its portability, the product's quality plastic container resembles the look

and texture of glasses. Additionally, it is a hundred percent recyclable and has a shelf

life of more than 12 months, retaining the essence of the wine and safeguarding it with a

transparent cover and resealable cap that serves as a coaster while maintaining its

integrity. Because of the versatility of creating wines and other beverages in this

composition, customers will be able to choose from a variety of options, whether they

need red wine, white wine, or another flavor of their preference. As a consequence of

the offering of innovative and creative packaging solutions in the single-serve wine

market, wine consumers may now have what they want, whenever and wherever they

want, as evidenced by GoWines.

13
Ultimately, the company's lower price compared to enterprises who offer bottled

wines will be its key differentiating feature. Wine drinkers who opt to consume just a

little amount of a single flavor while their friends consume a variety of distinctive flavors

will not be obligated to purchase bottles, resulting in frugality in both money and product

use.

As an added bonus, prospective customers can sample a variety of flavors in small

quantities prior to making a purchase, as opposed to companies that sell wines

packaged in bottles, where customers do not have the luxury of sampling a variety of

wine products due to the unquestionably high costs of such products for the latter.

C. Target Market

The primary target market of the venture will be the income class earners who belong

to the middle class.  More precisely, the target market will include all residents of the

Philippines between the ages of 26 and 35, regardless of gender. The product's

objectives will be specifically targeted towards them, as illustrated by the decreased

pricing associated with single-serve wine packaging. Wines are not new to the modern-

day adult lifestyle. Consequently, GoWines' target market will be people who enjoy the

taste of fine wine without purchasing a whole bottle and those who want the

convenience of bringing wine with them at all times and places.

With GoWine's distinctive on-the-go packaging, those of legal drinking age, notably

college post-graduate adults up to the working class, will have no difficulty enjoying

quality wines. GMW Corp. will establish partnerships with the provision of wines

with channels such as hotels, supermarkets, convenience stores, restaurants, and

14
independent retailers that seek to enhance and fuel not just the unique product, but also

the wine industry's general growth and progress.

D. Technological Concept

Single-serve wine packaging is considered groundbreaking since it will be the first

time that a single-serve wine product will be available. Premium wines are available for

consumption at any time and from any place. A high-quality polyethylene terephthalate

plastic material derived from bamboo fibers is utilized to preserve and maintain the

freshness of the liquor contained inside the product.

The Gowines' state-of-the-art packaging includes easy-to-open and 100 percent

recyclable PET plastic, an ergonomic shape wine glass created from bamboo fiber that

resembles and touches regular glass, and a wine bottle with a handle that is both easy

to open and a hundred percent recyclable. It includes a rescrewable top that works as

both a cover and a coaster, and it is dishwasher safe. Each glass of wine is wrapped in

a fresh sheet of paper, ensuring that the liquid stays fresh and the glass remains

sparkling clean.

The packaging constructed from these fundamental materials, as opposed to typical

glassware, is durable and resistant to breakage due to mechanical impact, falls, and

extreme temperatures. The packaging built from these basic materials will also be

purely recyclable—making it align to the concept of eco-friendliness and ecological

preservation.

15
E. Business Model Concept

Table 1.0 Business Model Canvas

The business model canvas of GWPS Corp. consists of nine blocks as stated

above in Table 1.0, this represents that the customer segments concentrate on the

demographic and behavioral segments. Considering the age, consumers of legal age to

buy premium wines are part of the segment, thus this includes whether it is a family

gathering, couples on a date, or even when alone. Another thing considered is the

customers' buying habits, whether they are high or low spenders or if it is occasional

and for the holidays which leads to wine enthusiasts, on how often they buy. The

distribution channels will be administered by a third-party logistics company controlling

the stocks and commodities from the warehouse direct to the stores or the clients'

company. GWPS Corp. will also have promotions and advertisements that will comprise

an essential part of the sales process. The bigger scale we dock as a deal, the better it

16
is for the proponents' progressing forward for expansion, depending on the allegation of

the results of earnings from the revenue streams.

The operations would rely hardly upon the vital resources, which are the

technically skilled workforce empowered to supervise industrial machinery for the

production of the goods. At the same time, the partners will manage the production of

wines and other raw material.

Key activities would include the production, the marketing and promotion and the

sale of the product. GWPS Corp. will have promotions and advertising customized with

our packaging solutions for single-serve beverage products. The distribution of the

product from warehouse to partner stores and thus to consumers is one of the most

important parts of the key activities. All of these are essential aspects to GWPS Corp,

from employees to the supplies, the customers and clients, the logistics company, the

promotion and advertising. Lastly all costs will be indicated in the cost structure of

GWPS Corp.'s Business Model Canvas.

F. Value Chain

17
Figure 1.5 Value Chain

The value chain, as exhibited in Figure 1.5 is a sequence of ventures that allow the

corporation to operate effectively. The first significant part is regarding the Support

Activities, which describe the Firm Infrastructure, Human Resources, Technology

Development, and Procurement. Constituted in the areas such as operation,

management, finance, research and development, and engineering department, all of

these are technically skilled employees given various tasks that will make the offering a

successful and excellent quality product and services. The second major part is the

Primary activities, describing how daily operations run, from Inbound Logistics,

Operations, Outbound Logistics, Marketing and Sales, and especially with service, all of

these constitute the point where the business progress of operations relies upon to

interact with the liquor manufacturers appropriately.

Why is it Feasible?

♦ Engaging

Many liquor stores and dealers will love our proposed single-serve wine

packaging. They will favor this packaging as it makes it easier to keep track of

exactly how much alcohol their consumers consumed, with the help of portions

divided into separate containers. Individuals who drink occasionally but don’t

want to drink frequently often find single-serve packaging to be a great option.

Thus, GoWines’ ergonomic idea of a real wine glass-like experience provides the

sexiness to the product. Relaxed vibes for its customers, the spree of how it

resembles and touches like real glassware as it is made of high-quality PET

18
plastic materials from bamboo fiber is advanced and unique, the twofold purpose

of its re-screwable cap that turns into a coaster is artistic as it does not only

prevents you from spilling your drinks and likewise eludes the mess. All of these

features are present in this 100% recyclable product.

♦ Doable

Curtis Mann, the director of wine, beer, and spirits for Sacramento-based

Raley’s Family of Fine Stores, extended his proficient theories. “We do have

some free-standing displays of cans, but the key is to get them in the cold box.

Customers want an immediate consumption option,” he said. “The other items

are just placed in our (wine) set, and we will run promotions on them

periodically.”. With GoWines presenting the portability of the wines and

beverages to customers it will allow its consumption in any given environment.

To find competitive leverage in this field, there is a need for this innovation in the

market.

♦ Durable

Whichever aggregates shelf life in wine is tricky to determine. It is often based

on consumer or critic expectations and not by scientific criteria. Initially, changes

are commonly profitable, ending in a loss in bitterness, astringency, and a loss of

frothy odors. The following qualification usually occurs in a lessening of fruity

aromas. Wines with a longer shelf life typically maintain a unique varietal aroma

and produce an aged smell. With the GWPS Corp’s packaging solution, it

provides a longer shelf life that other liquor companies don’t have.

19
Nevertheless, in the absence of these characteristics, or with the

development of oxidized and other repulsive odors, the shelf life of wine may be

measured in terms of several months to a few years. The latter may develop as

an outcome of flops in the bottle closure, exposure to sunlight, the presence of

high temperatures, environmental contaminants, and microbial spoilage. The

packaging of GoWines would give beyond 12months of a shelf life as its

innovative layout and materials are tested sufficiently before distributing to the

liquor shops and dealers. The glass-like characteristics of its high-quality PET

plastic glassware enable the product to preserve and maintain the freshness of

productionthe wine as it has the clean cover included during production.

♦ Profitable

The market for wines is expected to grow annually by 7.9% from 2020 to

2025, not to mention the growing number of Philippines’ wine consumption

towards US wines. Growth will be supported by continued favorable gains in

domestic wine consumption and production. Also, advances will be driven by

rising disposable individual assets and changing alcoholic beverage favorites

transpiring with younger consumers. These changes include the choice for wine

over beer amongst millennials and a more significant percentage of millennials

consuming wine daily than that in other era groups.

Possibilities for related packaging will benefit from its crucial role in

marketing since it is the packaging that builds a first impression on the wine and

20
can also improve the discernment of the wine’s quality. Glass bottles, the long-

time traditional wine container, will continue to dominate the container mix in

value and volume terms. Nevertheless, competition is increasing from a growing

variety of alternative package formats and sizes offering more excellent economy

or convenience. Overall, 9% of respondents said that they always purchase wine

in single-serve bottles or packaging. 12% said they only buy serve wine most of

the time. 13% do so about half the time. 30% said they rarely ever purchase

single-serve wine. And 35% never do. Conceivably, 33% said they are at least

somewhat likely to buy wine in single-serve packaging within the next year. While

43% said they are unlikely to purchase single-serve wine this year.

And 23% are neutral or uncertain in this case. Those who usually

purchase wine at grocery stores were more inclined to be interested in single-

serve wine and also more likely to drink wine more often. Single-serve wine

bottles are increasingly popular among consumers and represent a significant

new category in the overall wine market. According to Mintel, one of the four

trends that will continue in 2019 is the growth in food and beverage products in

single-serve portions.

The GoWines packaging would cost lower than any single-serve

beverages for the cost of materials to produce the product is relatively lower.

Thus, it will instantly be cost-effective as the return of an investment will be

significant as the demand to have portability for wines and cocktail beverages.

Furthermore, a substantial capital would be necessitated not only for the

manufacturing of the product but also for the freighting and dissemination of the

21
products, and it is also essential that the brands tied up to the service provided

by GoWines are premium brands so there would be a pressure for consumers to

buy the product. This would be a long-term investment for the scalability would

undergo a drastic transformation for the more shops and other partner stores, the

more it will be promoted fast and continuously advancing as the technology

progresses for the solution to single-serve packaging dilemmas.

♦ The rationale of the study

Smaller format bottles allow wineries to expand into new markets and

occasions, attracting consumers with the ability to mix-and-match varietals and

sample products without committing to a multi-serve format.

This study caters to the emerging dilemmas in the single-serve wine and

ready-to-drink cocktails classification for premium beverages. By here, GWPS

Corp.’s packaging provides a solution to the demand to offer compact premium

beverages that have a long shelf life and conviction that it is entirely fresh and

clean when consumed.

Now, not only is it profitable for the proponents, they could also execute

with premium brands seeking to grow their brand into the said class. GoWines

will be the absolute answer to the concept of drinking wines in any given setting,

its idea to experience the indulgence of premium beverages at a lower cost

rather than buying on a more significant scale.

C. Short-Term and Long-Term Objectives

  Short-term Objectives

▪ To develop a stable relationship between the clients

22
▪ To determine various local wine dealers/companies into expanding their business

by being GWPS Corp. 's supplier of wine and incorporating it into the unique

packaging as a portable single-serve solution.

▪ To be the pioneer to introduce and develop the use of PET Plastic made from

Bamboo-Fiber Material in providing flexible single-serve packaging solutions.

Long-term Objectives

▪ To be capable of being an established name in the industry and of regaining the

investments within three years of operations.

▪ To be the best manufacturer of the portable single-serve wines category, not only

in the Philippines but also within the global distribution of premium beverages

with GWPS Corp. 's product.

▪ To broaden the company's reach for the growth of customer service support and

constant innovation of the product.

▪ To develop high demands for Portable Single-Serve Packaging Solutions

nationwide.

▪ To be the household name among the industry and chosen category of GWPS

Corp. attainable within the next 10-15 years.

D . Mission, Vision, and Core Values

Mission: To contribute a high-quality product with the packaging solutions for the

premium single-serve and ready to drink wine, uplifting the GoWines Manufacturing

Corp., core values.

23
Vision: To grow as an innovative company and to be the uppermost provider of the

portable single-serve wines to liquor merchandisers, supermarkets, convenient stores

and hotels and ready-to-drink wine industry.

CORE VALUES (PEACE)

CUSTOMER-ORIENTED. The GWPS Corp. will concentrate on delivering a high-quality

product catered for its client & consumers.

COMPASSION. Compassion makes it easier for GWPS Corp to use the other core

values. When you have compassion, it’s natural to be curious about what leads people

to do what they do, and it’s easier to be transparent about what you’re thinking. That’s

because the questions you ask and the point of view you share stem from your interest

in learning rather than merely judging. When you have compassion, it’s easier to

maintain accountability as accountability is in the service of development rather than

punishment.l GWPS Corp has compassion, we are more likely to surface everyone’s

underlying needs; that makes it easier to generate commitment.

ECONOMICAL. The GoWines brand will provide a valuable product, service, and

support to its clients and consumers, especially to help the consumers in tracking and

moderate their alcohol consumption.

E. Internal Success Factors

24
UNIQUENESS OF THE PRODUCT. GoWines is the first in the Philippines to employ

portable single-serve packaging solutions. It gives the GWPS Corp. the advantage in

enticing premium wines and liquor dealers and customers to patronize the product.

INNOVATION & RELEVANCE. The technological advancement of the product shows

that GWPS Corp. can innovate a wine glass made with eco-friendly materials.

EXCELLENCE IN SERVICE. Hiring fitted and trained personnel provides quality

assurance for the company, ensuring that none of the supplies and resources persists

in wasting.

F. External Success Factors

Market expansion. The demand for portable single-serve packaging solutions is

necessary for premium wine, beverage, liquor dealers, and consumers as its market

share rises continuously as it also provides eco-friendly awareness for products that

mainly use plastic on their products.

Market Assumptions. During the first months on the market, GoWines may not be

encompassed positively by the clients, as this is a new and unique classification. Still,

GWPS Corp. will persuade the consumers as they introduce the product to solve the

portable single-serve packaging dilemma that is currently existing.

25
Brand Awareness. This allows GoWines to promote its product and services

continuously through advertisements and through partnered channels.

● In the second year of operation, it will generate a 33% increase in sales through

the premium wine, beverages, and liquor dealers GWPS Corp. has partnered

with.

● Also in the second year, GWPS Corp. anticipates to breakeven with their

investments and regularly increase their market share. With this, they can gain

more clients in the process.

26
G. Feasibility Criteria

The following criteria will be used to prove the feasibility of the product:

● Availability of suppliers. Providing the raw materials needed for the product,

premium wine, beverage, and liquor dealers and the custom-made wine glass

supplier that were partnered by GWPS Corp.

● The effectiveness and competence of the logistics company managing the

distribution of products.

● Suited and equipped workforce to handle day-to-day operations and properly

accomplish the plan of the business model.

● Requirement of abundant capital investment to maintain the whole foundation of

GWPS Corp. and its value chain.

27
Chapter 2

Environmental Analysis

A. Political/Legal Factors

Republic Act 9003: Ecological Solid Waste Management Act of 2000

An act providing for an ecological reliable waste management program. It is

creating the necessary institutional mechanisms and incentives, declaring individual

acts prohibited and providing penalties, appropriating funds, and for other

constancies. 

This act states a systematic, comprehensive, and ecological reliable waste

program that shall ensure the protection of the public health and environment.

Furthermore, it discusses the guidelines to provide a way of environmental-sound

practices for companies using solid waste such as plastic to avoid and reduce waste

materials that cause harm to the environment. Those mentioned above encourage

waste minimization resources, recycling, reusing, recovering, and treating the

disposal of solid waste. Concerning GWPS Corp. and the GoWines product, the

proponents will provide a portable single-serve packaging solution made from PET

Plastic using materials from bamboo fibre.

Republic Act 10963: Tax Reform for Acceleration and Inclusion (TRAIN)

An act amending a series of sections all under Republic Act No. 8424, otherwise

known as the National Internal Revenue Code of 1997. Enhancing the progressivity

of the tax system through the rationalization of the Philippine internal revenue tax

system. Whereby, promoting sustainable and inclusive economic growth; providing

as much as possible, and equitable relief to a more significant number of taxpayers

28
and their families to improve levels of disposable income and increase economic

activity; and ensuring that the government can provide for the needs of those under

its jurisdiction and care through the provision of better infrastructure, health,

education, jobs, and social protection for the people.

B. Economic Factors

Economic Status of the Philippines

In recent years, economic growth has become more inclusive as it translates

into more reliable job creation and faster poverty reduction. In October, more than a

million jobs were created since the same month last year, while the unemployment

rate fell to its lowest level in 10 years at 6 percent. The reduction in poverty

incidence between 2012 and 2013 also indicates that growth is becoming more

inclusive. Furthermore, the 2013 Annual Poverty Indicators Survey (APIS) suggests

that the bottom 20 percent's real income grew much faster than the rest of the

population. The survey confirms that the government's conditional cash transfer

(CCT) program is well-targeted and reaching the poor, as indicated in the substantial

growth of domestic cash transfers to the bottom 20 percent. Moreover,

underemployment among the poor significantly decreased in the same period.

Going forward, the Philippines needs to accelerate reforms that can translate

higher growth into more inclusive growth—the type that creates more and better jobs

—so that poverty can be reduced massively and prosperity shared by more people.

Already, between 2012 and 2013, the growth elasticity of poverty—the rate at which

economic growth reduces poverty— improved significantly to -2.02 from -0.24

between 2006 and 2012. If these trends are sustained, the government's goal of

29
reducing poverty to 18-20 percent by 2016 is attainable. Over the long-term, if

growth is sustained at 6 percent per year, per capita income can double within one

decade, grow five times in 2 decades, and reach 11 times in 3 decades. If the

growth elasticity of poverty remains high, poverty can be eradicated within a single

generation. However, this requires a more aggressive approach to addressing the

stubbornly high overall rate of underemployment. For instance, the recent

contraction in agricultural value-added and employment risks undermining the

government's poverty reduction efforts because agriculture is where most of the poor

find a livelihood.

Increasing of Middle Class and Poverty

Eradicating poverty and boosting shared prosperity requires implementing an

already well- known policy agenda of structural reforms. The key reform areas are:

1. Increasing investments in infrastructure, health, and education

2. Enhancing competition to level the playing field

3. Simplifying regulations to promote job creation, especially by micro and small

enterprises

4. Protecting property rights to encourage more investments

This policy plan, which benefits from a broad consensus among local and

international policy analysts, is discussed in detail in the 2013 Philippine development

report, "Creating more and better jobs." This edition of the PEU elaborates on the first

two recommendations. 

Over the medium to long-term, higher investments in infrastructure, health, and

education, are vital to inclusive growth. The effects of lagging infrastructure investment

30
and some policy recommendations are discussed in detail in the following individual

focus sections: 

● Congestion in Metro Manila and its impact on the economy: In the last

decade, Metro Manila experienced high and sustained economic growth,

but infrastructure deficits have led to worsening road congestion. This

costs the economy around 8 percent of GDP annually. To address the

worsening congestion, the national government and various city

governments have implemented ad hoc measures to limit the number of

vehicles on the road, sometimes with inadvertent and occasionally severe

consequences, as the Manila port congestion of 2014 demonstrated.

However, the real solution lies in taking measures to create new and

better road networks and mass transit systems. 

● Luzon's potential power sector shortages and the way forward: Luzon

may suffer power shortages between April and May of 2015, brought

about by aging generation plants, lack of reserve capacity, and the

deficiency in alternative sources of power as natural gas. With proper

planning, conservation, and favorable weather, Luzon can avoid a

catastrophic power crisis in 2015. However, the country still faces many

issues around high power cost and supply constraints. To address these

issues, the country needs to encourage more investments in a mix of

energy sources to enhance energy security, and strengthen competition in

the power retail sector to improve service and bring prices down, among

other essential reforms. 

31
● Reviving Philippine electronics exports: Between 1980 and 2008,

Philippine electronics exports grew exponentially, becoming the critical

export product in the 2000s. However, since the 2008 global financial

crisis, electronics exports have not fully recovered. Regaining the

country's position as a leading exporter of electronics products require a

concerted effort to i) improve power cost and reliability, ii) raise

infrastructure and human capital investment, and iii) reduce non-tariff

trade barriers. 

Overall, the country has an investment gap (both physical and human capital) of

around 6.8 percent of GDP as of 2014. Improvements in tax administration (i.e.,

efficiently collecting existing taxes) can generate about 3.8 percent of GDP in fiscal

space over the medium-term to finance the investment gap. The balance of 3 percent

needs to come from tax policy reforms. Tax administration reforms include simplifying

tax procedures and processes to facilitate compliance, and lifting the excessively

restrictive bank secrecy laws, making it very difficult to catch tax frauds. Globally,

excluding offshore financial centers, only Switzerland and Lebanon have similar

restrictive bank secrecy provisions, but the former is committed to relaxing it soon.  A

more equitable, efficient, and more straightforward tax system should be the aim of any

tax policy reform. The following reforms can be considered. First, tax incentives should

be rationalized by making them more targeted, transparent, performance-based, and

temporary. This should include the timely release of a tax expenditure statement, which

enumerates all existing tax incentives and benefits them. Second, tax rates and

32
valuations which have not kept up with inflation should be adjusted to improve the tax

system's equity. Examples are petroleum excise taxes and property valuations, which

have not been updated for decades. Rapidly falling oil prices provide an opportunity to

adjust petroleum excise taxes to make the tax system more equitable. This should be

enacted with utmost urgency. 

C. Socio-Cultural Factors

Wine has been part of countless traditions and celebrations, even in religion, its

endorsement is generally acclaimed, and the single-serve wine has been taking its

trend as it is going through an intensive growth phase at an instant. The middle-class

and high-class Filipinos are starting to bring demand to wine. Some of this occurs in

events or parties as most people want to add class to this formal gathering. The

popularity of wine provides a market to the GoWines product, the packaging solution for

individuals who wish to keep track with their alcohol intake, the single-serve wine is an

invention for consumers in this different level. Besides, people care about the

environment, the packaging product that the GWPS Corp. assures is an eco-friendly

product, a PET Plastic Product made from Bamboo-Fiber materials that senses and

resembles like a real glass wine.

33
D. Technological Factors

Figure 2.0 Manufacturing Process

The industrial technology rendered by the manufacturing partner, Filpet Inc., will

produce the designed product, and the technology behind the product is a wine glass

made from PET Plastic using bamboo-fiber as its core element. This eco-friendly

product feels and looks like real glassware, suitable for any Premium Wines,

Beverages, and Liquors. The single-serve packaging provides portability to the product,

a solution for the interest of drinking anywhere and anytime. Figure 2.0 visualizes the

manufacturing process during the development of the product as well as the quality

assurance of the product and service.

34
Chapter 3

Industry Analysis

A. Industry Overview

The global wine packaging market is segmented into leading regions such as North

America, Europe, Asia Pacific, and Rest of the World. The global consumption of wine

packaging raw material so as the manufacture of wine containers is highly intended

across North America and Europe. The growing wine consumption across North

America and Europe economies is moving the succeeding wine packaging market.

Whereas, the growth in wine consumption across major Asia Pacific countries with

changing lifestyle and alcohol consumption patterns, acts as a critical driver for an

increase in wine packaging in this region.

The packaging manufacturers across the globe are highly focusing on improvising

the distribution process through economies of scale. These economies of the levels are

primarily monitored across the wine packaging manufacturers to optimize the assets

accessible to the manufacturers.

Globally, wine packaging manufacturers are immensely concentrating on providing

ecological solutions such as sustainable packaging and environment-friendly packaging.

Moreover, the growing need to increase the packaging safety concerns among the

consumers is launching the demand for ancillary wine packaging such as carton

partitions, trays, racks, boxes, and barrels, among others. These factors are highly

stoking the market across the wine packaging manufacturers operating in the prominent

wine-producing countries across the globe.

35
The wine packaging industry is unswervingly allied to the wine manufacturing

industry. The wine market has witnessed remarkable growth over recent years. It is

expected to retain this over the forecast period, owing to several benefits associated

with the wine, namely taste, and health aids. The health-conscious citizens have

emerged as one of the largest consumers across the globe, leading to more massive

wine production, consistently driving the wine packaging market. Moreover, wine is

recognized as the favoured drink on various occasions, owing to the immense

availability of its extensive selection catering to different audience groups.

However, the growing rigorous government regulations and environmental concerns

related to some of the packaging raw materials might act as restraints to the market

growth. In opposition to these factors, companies along the packaging and wine

producers are highly focusing on new material innovation to comply with modern

ecological standards.

The Philippines has sustained demographic changes, reflected in the higher

economic spending power of the middle class. As a result of the growing disposable

income among consumers, wine will benefit from this economic trajectory as it is

considered a prestigious product that is perfect for celebrations.

The continued expansion of restaurants and bars, which offer wine by the glass and

by the bottle, provides an excellent vehicle for consumers to sample different brands

and products. On-trade establishments present an avenue for consumers to enjoy wine

in a more social environment.

36
B. Michael Porter’s 5 Forces:

Figure 3.0 Michael Porter’s Five Forces

● Bargaining Power of Buyers: Medium

The bargaining power of buyers is neutral as the GoWines product is a network

focused brand, the product that the proponents offer are unique in the business, not

only the product is made of eco-friendly products, but the demand is present when it

comes to discussing this division.

The reach of its target market is not limited only to the liquor manufacturers but

as well as with the consumers that should be on legal age but its availability and need

by classic beverages enthusiast that appreciates the class of the product and also the

ability of the consumers to keep track of their alcohol intake, which will be capitalized by

GWPS Corp.’s clients that offer premium wine, beverages & liquor selling the packaging

solution to people in all positions of being. 

37
● Bargaining Power of Suppliers: Medium

In the industry of providing premium wine, beverages, and liquors, there are

numerous contentious suppliers that GWPS Corp. could use to utilize the GoWines

brand, the proponents’ product and services have many sources of their raw materials

to choose from. This means that suppliers of the raw materials for the product would not

be difficult. Thus, they cannot drive the prices unless there is a crisis of getting a

specific raw material.

● Threat of New Entrants: High

Figure 3.1 Better Oxygen Management System & Headspace Control

To provide an eco-friendly product that is made of 100% recyclable materials

made from bamboo fiber, producing a product that feels and looks like real glassware is

a market that could attract new competitors. What makes the GoWines product unique

is the better oxygen management system & headspace control that the bamboo fiber

38
offers to provide, which makes the shelf life of specialty drinks placed in this packaging

products’ expiration due longer and keeps it safe all the time as shown on Figure 3.1.

If a new competitor was capable of coming up with a better solution against this

product, then the threat is high for the GoWines brand. To dodge this, there should be

continuous improvement & research processes for the packaging product and its

benefits.

● The threat of Substitute Product or Services: High

A patent provides its owner with the right to exclude others from exploiting the

licensed technology, including, e.g., making, using, or selling the patented invention.

This “exclusive right” enables the patent owner to regain development costs and obtain

a return of investment in the development of the licensed technology. Sufficient patent

security stimulates research and is an essential requirement for raising venture capital.

It is also crucial to overall economic growth. A company that decides to file patent

applications should foster a strategic approach that obtains value from patents while

minimizing costs associated with getting the licenses. As long as the technology of the

product would be registered, then it secures threats against the substitution of the

product. With constant development for the packaging solution, the appeal of GoWines

will increase its sales on the market, and this shows the importance of product

supremacy in this division.

39
● Rivalry Among Existing Competitors: Medium

The competitive rivalry in this industry is in a neutral position, for there may be

existing packaging products in the market. Still, GoWines will be the home brand in the

packaging solutions category that utilizes the use of bamboo fibre in the production of

its product, its 100% recyclable, eco-friendly, and most of all, its functions to feel and

look like real glassware that provides longer shelf life. The exact amount needed to be

consumed by the consumer, freshly sealed premium wine, beverages, and liquor.

However, it requires a high value of the capital investment as there is a need to improve

the product and the base maintenance continuously, at the same time, the competition

in this market in the Philippines is still in the medium for the offered product of GWPS

Corp. It is a different class and the pioneer in the market.

40
C. SWOT Analysis

Figure 3.2 SWOT Analysis

Figure 3.2 shows the SWOT Analysis, evaluates external and internal factors that

the product and services provided. On the other hand, GWPS Corp. has interior impacts

that feature the strengths and weaknesses. As the GoWines brand focuses on

analyzing external factors, thus recognizing and practical strategies to maximize the

fundamental determinants present.

41
Chapter 4

Market Analysis

A. Research Design and Methodology

The proponents used purposive sampling for the research design of this feasibility study. The

said sampling technique is also known as judgmental, selective or subjective sampling, and it is

a non-probability sampling technique that gradually relies on the particular group that was

selected by the researchers according to its specific purpose.

a. Survey Results

Employment Status

Employment Status

0.01;3%
0.01;
0.03; 1%
1%

0.95; 95%

Employed Student Unemployed Self-Employed

Figure 4.2. Employment Status of Individuals who consume wine

Figure 4.2 depicts the occupational status of respondents who consume wine. It was

discovered that 95 percent of respondents are considered employed, suggesting that they

constitute a majority of those who answered the survey questions. A further 3 percent of

students composed the respondents who consumed wine. Conversely, self-employed and

42
unemployed respondents came in last, accounting for only 1 percent of the whole sample. As

the total number of respondents were topped by employed individuals who accounted for

almost a hundred percent, this implies that most wine drinkers are already individuals who

have the capacity to generate their own income through industry.

Monthly Allowance/Income

2%
2%

40%
56%

Php 1000- Php 5000 Php 6000- Php 10,000


Php 11,000- Php 15,000 Php 16,000- Above

Figure 4.3. Monthly Allowance/Income of Wine Consumers

Amounts of money earned by wine consumers on a monthly basis are shown in Figure 4.2.

Every month, the majority of respondents who answered the survey earn between Php1,000

and Php5,000. With a rate of 56 percent, this group is the most frequent wine consumer in the

Philippines. In the second place, 40 percent of the sample earn a monthly salary of Php 11,000.

It was only around 2 percent of wine drinkers earning between Php11,000 and 15,000 fell into

the third category, which also included wine consumers earning Php16,000 or higher. An

43
average income that falls under the range of Php 1,000-5,000 on a monthly basis is considered

to belong at a category below the average monthly wage in the Philippines. In this light, since

most wine drinkers belong within this monthly income range, the creation of a single-serve

wine will particularly help them to have access to drinking their preferred wines due to their

lower costs.

3%

97%

26-35 16-25 36-50 51-Above

Figure 4.4. Age Bracket of Wine Customers

Figure 4.4 shows that the bulk of wine drinkers are between the ages of 26 and 35, with 97

percent being between this age bracket. Additionally, a total of 3 percent of those between the

ages of 16 and 25 who consume wine fall into the second category, which is a statistically

significant difference when compared to the first group in terms of numerical rate. Wine

drinkers between the ages of 36 and 50, as well as those above the age of 51, came in bottom

place with a 0% participation rate. With such a large proportion of wine drinkers falling within

44
the age range of 26-35 years old, it is fair to presume that the vast majority of wine drinkers are

already adults and are already capable of working in a variety of industries.

7%

93%

Within Metro Manila Outside Metro Manila

Figure 4.5. Location of Customers

In Figure 4.5, it can be seen that 93 percent of the clients are from inside Metro Manila,

with just 7 percent coming from outside the locale. This relates to the primary target market of

"Go Wines," whereby the fact that the majority of the customers dwell within Metro Manila,

which is a large market and a hub of trade, the probability for the effective dissemination of the

group’s product will become high.

45
30%

70%

Affordability Taste Presentation

Figure 4.6. Preference for Wine

Customers who purchase wine are looking for cost as well as flavor, as illustrated in Figure 4.6.

70 percent are concerned with price, whereas 30 percent are simply concerned with flavor, and

0 percent are concerned with presentation quality. It may be extrapolated that the majority of

wine customers select wines that are less expensive while only secondarily considering the

quality of the wine. As a result, the introduction of single-serve wines will increase the capacity

of customers to buy more wines since, in contrast to bottled wines, single-serve wines will

make even the most excellent wines affordable to consumers.

11%
22%

23%

44%

Four Times a Month Thrice a Month


Twice a Month Once a Month

Figure 4.7. Frequency of Wine Consumption

46
As seen in Figure 4.7, 44 percent of wine customers buy wines three times a month,

making it the most important category in this regard. According to the Wine Institute, 22

percent of wine customers purchase four times a month, 11 percent purchase twice a month,

and 11 percent purchase once a month.

Because these beverages are not regarded to be fundamental requirements, customers

are already purchasing wines three times per month, which is considered to be a regular

purchase. In this context, the development of single-serve wines will be a wise decision since

there is a large demand for wine, and packaging it in this novel manner may enhance the

purchasing frequency of wine customers.

Price Preference
4% 10%

36%
50%

51-100 101-150 151-200 201 and Above

Figure 4.8. Price Preference for Wine

Figure 4.8 reveals that 50% of those who want to consume wines are prepared to spend

between Php151 and Php200 for the privilege. In the next two categories, 36 percent are

prepared to pay Php101-150, and ten percent are willing to pay a value of Php51-100. Wine

47
customers who are prepared to spend Php 201 and more for the process of buying wines are at

the bottom of the list, accounting for barely 2 percent of the total. This means that when it

comes to buying wine, the majority of customers want cheap pricing that are in line with their

tastes. In this context, the introduction of single-serve packaged wine would make it feasible for

such customers to achieve their objectives of purchasing wines that are within their financial

reach.

5%

95%

YES NO

Figure 4.9. Importance of Packaging

Figure 4.9 illustrates the significance of packaging wine from the vantage point of

consumers. With a numerical rate of 95%, most of the respondents consider packaging to be an

important aspect that accompanies the product, such as wine in this circumstance. Ferrell et al.

(2021) expressed that packaging, in addition to protecting a product, is an important marketing

strategy that helps to build brand recognition, highlights the product's best features, and

creates a positive customer experience that is long remembered. In this light, packaging may

serve as a doorway not only for the attractiveness of the product, but also for the success of the

business venture. 

48
6%
Figure 4.10. 8%

86%

Facebook Advertisement Youtube Advertisement Instagram Advertisement


Advertisements that attract Customers

Figure 4.10 elaborates the impact of advertisements when it comes to the attraction of

consumers to drinking wine. It was yielded that Facebook advertisements are the most

influential when it comes to attracting wine consumers as evidenced by a significant percentage

of 86%. This was followed by YouTube advertisements and Instagram advertisements which

placed second and third with 8% and 6% respectively. Facebook advertisements prove to be the

most influential in this aspect as reflected by the fact that it is the most frequently utilized

social networking site on the planet, according to statistics (Alalwan et al., 2017).

3%

97%

YES NO

Figure 4.11. Willingness to Buy

49
Figure 4.11 establishes the willingness of wine consumers to purchase the product. It

was yielded that 97% of consumers are willing to buy the product as opposed to only 3% who

are not willing to buy the product. The buying and consumption of wine are two themes that

have piqued the attention of wine researchers across the globe. According to Loureiro and da

Cunha (2017), to get a greater understanding of the intricate nature of wine buying, researchers

should focus not just on demographics but also on purchasing power and perception, as the

proponents did in this study.

B. Distributor

The GoWines Brand distributes to all ages from 18-80+ and wine enthusiasts which will be

reached using these channels:

• Supermarkets

• Liquor Shops

• Convenience Stores

• Hotels

• Restaurants

• Direct Sale

C. Market Projection

In determining the market projection, the proponents figured out the willingness of wine

producers to use the packaging. To calculate the final projected market demand, the

researchers gathered the annual production of wine in the Philippines. Correlating this with the

50
percentage of producers who make red wine and are willing to use the packaging and

multiplied to four since four glasses with 250ml can be made from a one liter bottle of wine as

shown in Figure 4.8 below. A total of 2,581,333 would be the target demand for this research.

Annual Production Total volume of wine 12,100,000


produced annually in liters

Consumption Constraints Percentage of red wine 3,226,667


producers(26.67%)

Potential demand 3,226,667

Willingness to use the 645,333


packaging(20%)

Final Market Demand(2020) In 250ml glass 2,581,333


Figure 4.8 Market Projection as of 2020

D. Demand Analysis and Projection

In determining the projected demand for wine by the glass in the industry, the respondents

surveyed 15 wine producers in the Philippines. To derive the forecasted demand, the

proponents multiplied the willingness to use the packaging and the potential demand. The

compounded annual growth rate(CAGR) of wine consumption for the following years would be

7.8%

Potential demand @ Willingness to use the Final Market Demand in


Year 7.8% CAGR packaging(20%) 250ml glass
2020(base year) 3,226,667 645,333 2,581,334
2021 3,478,347 695,669 2,782,678
2022 3,749,658 749,932 2,999,726
2023 4,042,131 808,426 3,233,705
2024 4,357,418 871,484 3,485,934
2025 4,697,296 939,459 3,757,837
Figure 4.8 Demand Projection as of 2020

51
E. Supply Analysis

There is no supply of wine by the glass in the country yet. GWPS Corp. would be the prime

mover of the product.

F. Demand Supply Gap Analysis

Market Share in
Year Market Demand Market Supply Market Gap Share Market Gap
2021 2,782,678 0 2,782,678 5% 139,134
2022 2,999,726 0 2,999,726 6% 179,984
2023 3,233,705 0 3,233,705 7% 226,359
2024 3,485,934 0 3,485,934 8% 278,875
2025 3,757,837 0 3,757,837 9% 338,205
Figure 4.11 Demand and Supply Gap

As shown in Figure 4.11 above, GWPS Corp. needs to produce 139,134 units in the first year,

representing their 5% market share. The market share of the company is estimated based on

the capacity of the company to produce the product. The market share of the company

increases by 1 % every year since it is expected that the company will have enough resources

already to produce more goods.

G. Price Study

The pricing strategy relies on minimizing the product cost but not sacrificing the quality of the

product. The Selling Price of the product includes 12% Output VAT and ₱12.5 Excise Tax, which

according to BIR, for all types of wines, the excise tax is ₱50.00 per liter. But since the product

52
consists only of 250ml, ₱50.00 is multiplied by 0.25 to get the Excise Tax for the product. The

components of the product cost are shown below with the expected markup rate.

The cost of Novellino Wine based on the Memorandum Agreement is at ₱240 per 750ml. Each

Wine Glass contains approximately 250ml. Therefore, per glass of Novellino is ₱80. Another

component of the cost is the Wine Glass which costs ₱19 each based on the Memorandum

Agreement. The expected Gross Profit rate for the product is 47.33% of the product cost. The

computation is shown below.

Selling Price ₱199 100%

Product Cost ₱99 49.75%

Gross Profit ₱100 50.25%


Figure 4.14 Computation of Selling Price for Fruit Wine with 12% alcohol

53
H. Marketing Plan

• Product

The GoWines brand produces a product that serves as a service that features eco-friendly

single-serve packaging solutions for premium wines, beverages, and liquors. The product is

made from bamboo-fibre materials that help to look and feel like real glassware.

• Price

GWPS Corp. will apply a premium price strategy to establish a proper brand identity for the

GoWines product for its unique features compared to its competitors. The goal is to partner

with local wineries and wine dealers. GWPS Corp. 's packaging solutions will be more natural to

comprehend the market for single-serve packaging, providing exceptional quality of customer

service satisfaction.

• Place

GWPS Corp.'s main office will be located at Makati City, the known business district in NCR. The

warehouse will be established from Taytay, Rizal, for that is the location of the third-party

logistics company GWPS Corp. has partnered with, managing the operations in the main office

while tracking the manufactured products from the warehouse following to the clients within a

monitoring system throughout distribution.

• Promotion

Sales through channels like supermarkets, convenience stores, liquor shops, hotels, restaurants

and direct selling will be the most suitable choice for selling the product. The GoWines brand

54
will be introduced to the market by the local wineries, through the channels and through

advertisements, boosting GWPS Corp.’s name. This will introduce the product to the market

and to their competitors, allowing the GWPS Corp. to build and develop a connection with its

partners and clients.

55
Chapter 5

Technical Study

A. Level of Distribution Channel

GWPS Corp. will operate distribution through channels like partner stores, supermarkets, liquor

shops, convenient stores, hotels, restaurants and through direct selling. The GoWines brand will

distribute the product after it is produced by the agreed suppliers. Possessing this distribution

strategy allows the proponents to maintain opportunities coming as the company enters the

market, provided the research staff connects the GoWines brand to a competent partner store

with a highly rated evaluation on their products to carry the marketing strategy to GWPS Corp.

and having the eco-friendly single-serve packaging solution.

B. Supplies, Equipments and Furnitures

SUPPLIES PRICE QUANTITY TOTAL COST SUPPLIER


Bond Paper(500pcs) ₱167.00 100 ₱16,700.00 Office Warehouse
Scissors ₱49.75 10 ₱497.50 Office Warehouse
Cutter ₱15.50 10 ₱155.00 Office Warehouse
Stapler ₱87.00 10 ₱870.00 Office Warehouse
Staple Wire ₱22.75 50 ₱1,137.50 Office Warehouse
Pencils(12pcs) ₱76.75 50 ₱3,837.50 Office Warehouse
Ballpens(3pcs) ₱15.75 100 ₱1,575.00 Office Warehouse
Clear Tape ₱16.00 50 ₱800.00 Office Warehouse
Calculator ₱254.00 10 ₱2,540.00 Office Warehouse
Paper Clip(1 box) ₱13.00 50 ₱650.00 Office Warehouse
Tape Dispenser ₱89.75 10 ₱897.50 Office Warehouse
File Folder ₱4.75 100 ₱475.00 Office Warehouse
Waste Bin(3pcs) ₱100.00 10 ₱1,000.00 Landmark
TOTAL: ₱31,135.00

Office Supplies (Table 5.0)

56
EQUIPMENT PRICE QUANTITY TOTAL COST SUPPLIER

Acer Aspire TC-214 AMD Desktop ₱16,990.00 10 ₱169,900.00 Asianic

Canon Printer Pixma iP2770 Black ₱2,495.00 2 ₱4,990.00 Office Warehouse


Copier Machine Canon IR2010,
251, 271, Digital (Recon) ₱20,000.00 1 ₱20,000.00 Copier Online Philippines

SAPOE YRD20T Water Dispenser ₱895.00 2 ₱1,790.00 Anson’s

IMARFLEX ICM850T Coffeemaker Anson’s


with SS Thermal Carafe ₱2,699.00 1 ₱2,699.00
PANASONIC NR-A5613ES
Refrigerator ₱8,899.00 1 ₱8,899.00 Anson’s
Anzen (5) Dry Chemical Fire
Extinguisher ₱1,499.75 3 ₱4,499.25 Wilcon Depot
Panasonic Split Type Aircon CS-
PC9QKQ-1HP ₱22,499.00 3 ₱67,497.00 Panasonic
UNION UGM-16OF 16" Ceiling
Orbit Fan ₱1,195.00 5 ₱5,975.00 Wilcon Depot

GEM Star Cleaning


Supplies International
Janitorial Cleaning Supplies ₱561.00 5 ₱2,805.00

PLDT Home Fibr Lite Plan 1899 ₱1,899.00 2 ₱3,798.00 PLDT


Osram 8 W T5 Linear Fluorescent RS Components
Tube ₱100.00 15 ₱1,500.00 COrporation
TOTAL: ₱294,352.25
Equipments & Appliances (Table 5.1)

FURNITURES AND FIXTURES PRICE QUANTITY TOTAL COST SUPPLIER


Executive Chair ₱2,499.00 1 ₱2,499.00 CostULess
Couch ₱2,500.00 2 ₱5,000.00 OLS
Guest Chairs ₱1,199.00 10 ₱11,990.00 CostULess
Filing Cabinet ₱3,499.00 11 ₱38,489.00 CostULess
Meeting Table ₱5,499.00 1 ₱5,499.00 CostULess
Office Desk ₱1,599.00 11 ₱17,589.00 CostULess
Executive Desk ₱2,399.00 1 ₱2,399.00 CostULess
Reception Table ₱1,599.00 2 ₱3,198.00 CostULess
Office Chair ₱1,799.00 11 ₱19,789.00 CostULess
TOTAL: ₱106,452.00

Furnitures and Fixtures (Table 5.2)

57
C. Building and Facilities

Figure 5.1 Office Layout

Figure 5.1 displays the office layout for operations, the corporate office location of GWPS Corp.

will be located at Burgundy Corporate Tower, 252 Senator Gil Puyat Avenue, Makati, Metro

Manila. The office location is proven to be part of the business district accessible for the clients

to have a transaction with and vice versa. The floor area is 12x14sqm. It consists of a receiving

area and front desk to accommodate customers, a comfort room for both genders, two storage

rooms and an office space.

58
D. Calendar of Activities

Figure 5.2 Pre-Operating Activities

Presented in Figure 5.2 is the pre-operating activities of GWPS Corp. The whole process would

take ten months of preparation to have the business start its operations. The following events

will begin in 2022, guaranteeing that there is constant growth and prominence for the GoWines

brand before it enters the market with its features for packaging solutions.

59
E. Operations

a. Rent of Land (Table 5.3)

LOCATION SIZE OF LAND PRICE PER SQM COST OF RENT

Taytay, Rizal 500m P350.00 P175,000.00

b. Salaries (Table 5.4)

Gross Annual
Position Monthly Salary
Salary
Chief Executive Officer 50,000 600,000
Quality Assurance Manager 20,000 240,000
Finance Manager 20,000 240,000
Human Resource Manager 20,000 240,000
Sales Manager 20,000 240,000
Associates 13,000 156,000
Receptionist 13,000 156,000
Security Guard 9,000 108,000
Janitor 8,000 96,000
Total 173,000 2,076,000

c. Labor Requirements (Table 5.5)

POSITION QUALIFICATION

● Master’s Degree in any Business related course


● At least 10 years of work experience
● Ability to develop and implement high-related
strategies
Chief Executive Officer
● Able to handle its subordinates and work in diverse
groups
● Excellent leadership and communication skills

60
● Bachelor’s Degree in Accountancy
● Certified Public Accountant
● At least six years of experience
Finance Manager
● Proficient in analyzing, statistics, economics, finance
and accounting

● Bachelor’s Degree in Human Resources Management


● At least five years of experience
● Ability to use human resource management software
Human Resource Manager ● Ability to influence other and capable of analytical and
critical thinking
● Good communication and leadership skills

● Bachelor’s Degree in Business Administration


● At least two years of experience
● Strong oral and communication skills
Sales Manager
● Capable of working in teams and independently
● Able to work under pressure and willing to be assigned
in different locations

● Bachelor’s Degree holder


● At least two years of experience as an office assistant
or in related field
Associates
● Ability to write clearly and help with word processing
when necessary
● Great communication skills

● Bachelor’s Degree holder


● Well versed in managing multiple line phone system
and handling multiple incoming calls simultaneously
Receptionist ● Excellent knowledge of administrative and clerical
procedures
● Expert user of Microsoft Office Programs and front
desk software applications

● High school graduate


● Physically and mentally fit
Security Guard ● At least eighteen (18) years of age but not more than
fifty (50) years old
● Has undergone pre-licensing training course

61
● High school graduate
Janitor ● At least eighteen (18) years of age but not more than
fifty (50) years old

62
Chapter 6

Management Study

A. Organizational Plan

Figure 6.0 Organization Chart

The GWPS Corp. is an entity dominated by shareholders wherein the capital stock is divided

equally to its members, although corporations are complicated and costly, it provides a

business composition that is capable of providing security and flexibility for its shareholders.

Also, a corporation has a persistent existence, which empowers the business to operate despite

the precise failure of a shareholder or anyone with a management position. The business

structure of GWPS Corp. encourages a more straightforward decision-making process by the

expulsion of excess layers of management, enhancing the coordination and communication

between its employees effectively, reducing redundant positions, as shown in figure 6.0. Each

Manager also has an associate that would assist him or her in his or her day-to-day activities.

Officers and Key Personnel (Table 6.0)

63
POSITION JOB DESCRIPTION

Chief Executive Officer In charge of the overall performance and operations

Finance Manager Assures the financial status and capability of the company

Ensures the recruitment and trainings needed for the


Human Resource Manager employees

Sales Manager Prospects and ensures the contract with the client

Associates Assists in daily operations and clerical tasks

Receptionist Is the front-liner and handles the clerical tasks

Security Guard Provides security and protection in the enterprise

Janitor Maintains the cleanliness and orderliness of the workplace

Corporation Policies

· Attendance & Punctuality

It is essential for GWPS Corp. that all of its employees observe strict compliance on its regular

working hours (8hrs a day per employee for five days a week), the employee should value the

workplace by following its schedule. HR Management will monitor tardiness, absence,

overtime, and under time; deductions or bonuses will be applied given the related

circumstances.

· Equal Opportunity

GWPS Corp. implements opportunities to its employees regardless of its gender preference,

race, and religion. This avoids any discriminatory practices, thus achieving a workplace where

the employees feel secure and treated with honor.

64
· Performance Evaluation

GWPS Corp. pledges to deliver equal opportunities. Also, the company likes to recognize every

employee’s hard work and dedication to making this business prosperous. Thus, a performance

evaluation will be done quarterly to assess the level of performance an employee provides to

the company.

· Data Privacy/ Information Confidentiality

Each corporation is required to follow a law that protects the information of the business itself

or any individual. The Data Privacy Act of 2012 is the policy of the State to protect the

fundamental human right of privacy of communication while ensuring the free flow of

information to promote innovation and growth. The State recognizes the vital role of

information and communications technology in nation-building and its inherent obligation to

ensure that personal information in information and communications systems in the

government and the private sector are secured and protected. (Republic Act No. 10173)

· Compliance with the Law

GPT Corp.’s employees should never practice fraudulent acts such as bribery, theft, stealing,

and breaking any government laws and other violations that could reflect a negative image for

the company. This will be subjected to termination of the contract, and a possible lawsuit

against the accused.

65
Benefits & Compensation of Employees

· Salaries

· SSS, PhilHealth, and Pag-IBIG

· Holiday Pay/Suspension Pay

· 13th Month Pay

· Service Incentive Leaves

· Parental Leaves

· Other Leaves

Legal Requirements

· Basic Requirements

o SEC Registration

o DTI Registration

o City Business Permit & Barangay Clearance

o BIR Registration

o SSS, PhilHealth, and Pag-IBIG Registration

66
o DOLE Registration

o Intellectual Property Office (IPO) Registration

· Commercial Property Requirements

o Contract of Lease for the Warehouse and Office Unit

o Building Permit

o Occupancy Permit

o Fire Safety Certificate

o Sanitary Permit

o Zoning Clearance

B. Strategies and Programs

a) Corporate Strategy

The corporate strategy of GWPS Corp. is to align its operation with its Mission, Vision, and Core

Values. Striving to fulfill long-term objectives, GWPS Corp. efficiently. GWPS Corp will partner

with a wine dealer to successfully bring the product to the market, emphasizing its unique

product design and functionality.

67
b) Manufacturing, Production, and Quality Assurance

One of the Raw Materials of GWPS Corp. will be manufactured by Filpet Inc. as part of their

partnership to build and produce the GoWines product. A functional Quality Assurance

Manager will be hired to assess the final product produced before it is sold to the clients.

c) Sales, Marketing, Advertising, and Logistics

All finished products will be pick-and-packed by WEEXT Logistics Inc., another associate of

GWPS Corp. that will handle the storage, monitoring, and distribution of the finished products

to the end consumers acquired by the sales team. Overall the sales of the packaging product

will be managed and monitored by the marketing department which develops marketing and

advertising strategies for the GoWines brand to be recognized as the single-serve leading wine

by the glass, aiding the corporation to grow and be profitable, defining long-term strategic

marketing plans.

d) Human Resource Management

The HR Department will provide a vital role in developing the necessary requisites of the

company, hiring the right professionals to make the business successful; it’s their responsibility

to mold. It guides the employees towards growth and leadership development for every

individual in the company.

e) Finance & Administration

All shareholders have equal assets invested in the business. All of the investment capital, profit,

and assets, as well as debts, loans, maintenance, or anything involved with financials, will be

audited by a fair auditor to give transparency.

68
f) Other Strategies

· Contingency Plan

In the case something unforeseen that will provide discrepancies to the operation of GWPS

Corp. the Quality Assurance Manager and Industrial Engineer will evaluate the severity of the

situation and apply precautionary solutions to solve the problems that inflict the business, may

it be from the supplier, manufacturer, logistics or distribution that might complicate the client,

they will be handled immediately, this will be the priority of the operation if this occurs that’s

why monitoring is set to prevent this ensuring effective, efficient, and exceptional customer

satisfaction.

· Exit Plan

If the shareholder/s decide to retire, they may sell their shares to possible investors at a higher

or equal valuation. However, when the market and industry are weak, leading to a negative

profit, the shareholders will liquidate the corporation instead, selling all assets that are in good

condition.

69
Chapter 7

Financial Study

a. Major Financial Assumptions


1. The following are the major financial assumptions:

2. The business will be established under a corporation owned by five (5) incorporators

who are:

3. They will have a starting capital of 3,610,000 which is distributed equally by the

incorporators.

4. The business expenses will increase by 2%, 2%, 3%, 2%, 1%, and 5% which are for Direct

Materials, Electricity, Salaries, Rental, and Advertising Expense respectively to account

for inflation.

5. The business will adopt a straight-line method of depreciation of its assets.

6. Salaries will be paid once a month. If the timeframe is less, it will be at least when the

contract period has ended.

7. Mandatory contributions (SSS, PHIC, HDMF) are remitted the following month.

8. All of the company’s suppliers of goods and services are VAT registered.

9. Sales will increase by 10%, 50%, 5%, 5% each year which reflects the increase in

production yield yearly.

10. For simplicity, the ending and beginning balance for inventories of each year will be

equal to the one (1) week consumption for the next financial year.

11. Supplemental information relating to the aforementioned accounts and computational

breakdowns can be seen on the Schedules and Notes to Financial Statements.

70
b. Budgeted Statement of Income

GWM Corp.
Budgeted Statements of Income
(Amounts in Philippine Peso)
For the years ending December 31,

Reference 2022 2023 2024 2025 2026

Net Sales Sched. D 2,835,193 5,150,367 5,411,746 5,617,462 5,904,721


Cost of Goods Sold Sched. E 1,598,200 2,670,722 2,769,241 2,851,232 2,957,463
Gross Margin 1,236,993 2,479,645 2,642,505 2,766,230 2,947,258

General and Adminstrative Expenses


Salaries Expense Sched. K 703,221 1,194,629 1,254,037 1,317,117 1,382,405
Utilities Expense Sched. J 8,949 14,491 14,747 15,042 15,308
Taxes, Permits, and Licenses Note 3 3,880 2,365 2,365 2,365 2,365
Employee Benefits Sched. L 215,828 385,532 402,942 419,597 440,013
Advertising Expense Note 5 7,000 12,120 12,241 12,364 12,487
Depreciation Expense Sched. I 30,220 59,658 59,658 59,658 59,658
Supplies Expense Sched. M 31,135 31,758 32,393 33,041 33,702
Research and Development Sched. A 5,000 - - - -
Total General and Adminstrative Expense 1,005,233 1,700,553 1,778,383 1,859,183 1,945,939

Net Income/(loss) before Income Tax 231,760 779,092 864,122 907,047 1,001,319
Provision for Income Tax (20%) Note 6 (46,352) (155,818) (172,824) (181,409) (200,264)
Net Income/(Loss) after Tax 185,408 623,274 691,298 725,638 801,055

c. Budgeted Changes in Shareholder’s Equity


GWM Corp.
Budgeted Statements of Changes in Shareholder's Equity
(Amounts in Philippine Peso)
For the years ending December 31,

2022 2023 2024 2025 2026

Share Capital, Beginning Balance Project Cost - 1,300,000 1,300,000 1,300,000 1,300,000
Add: issuance of Shares 1,300,000 - - - -
Share Capital, Ending Balance 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Balance, December 31
Retained Earnings, Beginning Balance - 148,326 646,945 1,199,983 1,780,493
Add: Net Income SOI 185,408 623,274 691,298 725,638 801,055
Less: Cash Dividends (20% of Net Income) (37,082) (124,655) (138,260) (145,128) (160,211)
Retained Earnings, Ending Balance 148,326 646,945 1,199,983 1,780,493 2,421,338

71
d. Budgeted Statement of Financial Position
GWM Corp.
Budgeted Statements of Financial Position
(Amounts in Philippine Peso)
As of December 31,

Reference 2022 2023 2024 2025 2026


ASSETS
Current Assets
Cash SCF 1,119,661 1,774,620 2,398,255 3,046,321 3,758,951
Inventories 31,802 33,058 34,074 34,695 35,775
Other Current Assets Note 1 4,365 4,365 4,365 4,365 4,365
Total Current Assets 1,155,828 1,812,043 2,436,694 3,085,381 3,799,091

Non-Current Assets
Property, Plant, and Equipment, Net Sched. H 366,786 307,128 247,470 187,811 128,153
Total Non-Current Assets 366,786 307,128 247,470 187,811 128,153

TOTAL ASSETS 1,522,614 2,119,170 2,684,163 3,273,192 3,927,244

LIABILITIES & SHAREHOLDER'S EQUITY


Current Liabilities
Accounts Payable Note 3 62,700 133,270 140,974 147,347 155,840
Income Tax Payable Note 6 11,588 38,955 43,206 45,352 50,066
Total Current Liabilities 74,288 172,225 184,180 192,699 205,906

Total Liabilities 74,288 172,225 184,180 192,699 205,906

Shareholder's Equity
Share Capital (Par Value: ₱100 Per Share) SCOE 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000
Retained Earnings 148,326 646,945 1,199,983 1,780,493 2,421,338
Total Shareholder's Equity 1,448,326 1,946,945 2,499,983 3,080,493 3,721,338

TOTAL LIABILITIES & OWNER'S EQUITY 1,522,614 2,119,170 2,684,163 3,273,192 3,927,244

72
e. Budgeted Statement of Cash Flows
GWM Corp.
Budgeted Statements of Cash Flows
(Amounts in Philippine Peso)
For the years ending December 31,

Reference 2022 2023 2024 2025 2026

CASH FLOWS FROM OPERATING ACTIVITIES


Net Income/ (Loss) from Operation SOI 185,408 623,274 691,298 725,638 801,055
Add: Depreciation Expenses Sched. H 30,220 59,658 59,658 59,658 59,658
Operating revenue before Changes in working Capital 215,628 682,932 750,956 785,296 860,713
Movements in current assets:
Decrease / (Increase) in inventory (31,802) (1,256) (1,016) (622) (1,080)
Decrease / (Increase) in other current assets Note 1 (4,365) - - - -
Movements in current liabilities:
Increase/(Decrease) in accounts payable Note 3 62,700 70,571 7,703 6,373 8,494
Increase/(Decrease) in income tax payable Note 6 11,588 27,367 4,251 2,146 4,714
Cash Flows provided by /(used in) Operating Activities 253,749 779,614 761,895 793,193 872,841

CASH FLOWS FROM INVESTING ACTIVITIES


Acquisition of property, plant and equipment Sched. H (397,006) - - - -
Cash Flow provided by / (used in) Investing Activities (397,006) - - - -

CASH FLOWS FROM FINANCING ACTIVITIES


Capital Infusion by the Owner Sched. A 1,300,000 - - - -
Cash Dividends (37,082) (124,655) (138,260) (145,128) (160,211)
Cash Flow provided by Financing Activities 1,262,918 (124,655) (138,260) (145,128) (160,211)

NET INCREASE/(DECREASE) IN CASH 1,119,661 654,959 623,635 648,066 712,630

Cash at beginning of the year - 1,119,661 1,774,620 2,398,255 3,046,321

CASH AT END OF THE YEAR 1,119,661 1,774,620 2,398,255 3,046,321 3,758,951

f. Schedules and Notes to Financial Statements


GWM Corp. Sched. C
Budgeted Sales
(Amounts in Philippine Peso)
For the years 2022 to 2026

Sales
Year Product Price Units Sales (PHP)
2022 GoWine 199 16,190 3,221,810
2023 GoWine 209 28,010 5,852,690
2024 GoWine 219 28,030 6,149,712
2025 GoWine 230 27,710 6,383,480
2026 GoWine 242 27,740 6,709,911

73
GWM Corp. Sched. D
Computation of Output VAT
(Amounts in Philippine Peso)
For the financial years 2022 to 2026

2022 2023 2024 2025 2026

Gross Sales 3,221,810 5,852,690 6,149,712 6,383,480 6,709,911

Output VAT 386,617 702,323 737,965 766,018 805,189

Net Sales 2,835,193 5,150,367 5,411,746 5,617,462 5,904,721

GWM Corp. Sched. E


Cost of Goods Sold
(Amounts in Philippine Peso)
For the years ending December 31,

2022 2023 2024 2025 2026


Variable Costs
Direct Labor 530,250 902,955 949,135 997,650 1,048,349
Direct Materials 890,450 1,586,767 1,635,536 1,665,371 1,717,189
Total Variable Costs 1,420,700 2,489,722 2,584,671 2,663,021 2,765,538

Fixed Costs
Insurance 2,500 2,500 2,500 2,500 2,500
Rent 175,000 178,500 182,070 185,711 189,426
Total Fixed Costs 177,500 181,000 184,570 188,211 191,926

Total Cost of Goods Sold 1,598,200 2,670,722 2,769,241 2,851,232 2,957,463

GWM Corp. Sched. F


Cost of Goods Sold (Direct Labor)
(Amounts in Philippine Peso)
For the financial years 2022 to 2026

Year Product Cost / Unit Units DL


2022 GoWine 32.75 16,190 530,250
2023 GoWine 32.24 28,010 902,955
2024 GoWine 33.86 28,030 949,135
2025 GoWine 36.00 27,710 997,650
2026 GoWine 37.79 27,740 1,048,349

74
GWM Corp. Sched. G
Cost of Goods Sold (Direct Materials)
(Amounts in Philippine Peso)
For the financial years 2022 to 2026

2022
Product Cost / Unit Units DM
2022 GoWine 55.00 16,190 890,450
2023 GoWine 56.65 28,010 1,586,767
2024 GoWine 58.35 28,030 1,635,536
2025 GoWine 60.10 27,710 1,665,371
2026 GoWine 61.90 27,740 1,717,189
GWM Corp. Sched. H
Cost of Goods Sold (Direct Materials per Unit)
(Amounts in Philippine Peso)
For the financial year 2021-2026

2022 2023 2024 2025 2026


GoWine
Wine 52.00 53.56 55.17 56.82 58.53
Packaging 3.00 3.09 3.18 3.28 3.38
Total 55.00 56.65 58.35 60.10 61.90
GWM Corp. Sched. I-1
Schedule of Property, Plant, & Equipment
With LAPSING SCHEDULE-Depreciation Expenses
(Amounts in Philippine Peso)

No. Acquisition Salvage Useful


Unit Cost Dep. / Yr. Dep. / Mo.
of Units Cost Value Life (yrs)
Office Equipment
Acer Aspire TC-214 AMD Desktop 16,990 10 169,900 8,495 7 23,058 1,921
Canon Printer Pixma iP2770 Black 2,495 2 4,990 250 7 677 56
Copier Machine Canon IR2010, 251, 271, Digital (Recon) 20,000 1 20,000 1,000 7 2,714 226
SAPOE YRD20T Water Dispenser 895 2 1,790 90 7 243 20
IMARFLEX ICM850T Coffeemaker with SS Thermal Carafe 2,699 1 2,699 135 7 366 31
PANASONIC NR-A5613ES Refrigerator 8,899 1 8,899 445 7 1,208 101
Anzen (5) Dry Chemical Fire Extinguisher 1,500 3 4,499 225 7 611 51
Panasonic Split Type Aircon CS-PC9QKQ-1HP 22,499 3 67,497 3,375 7 9,160 763
UNION UGM-16OF 16" Ceiling Orbit Fan 1,195 5 5,975 299 7 811 68
Janitorial Cleaning Supplies 561 5 2,805 140 7 381 32
Osram 8 W T5 Linear Fluorescent Tube 100 15 1,500 75 7 204 17

Furnitures and Fixtures


Executive Chair 2,499 1 2,499 125 5 475 40
Couch 2,500 2 5,000 250 5 950 79
Guest Chairs 1,199 10 11,990 600 5 2,278 190
Filing Cabinet 3,499 11 38,489 1,924 5 7,313 609
Meeting Table 5,499 1 5,499 275 5 1,045 87
Office Desk 1,599 11 17,589 879 5 3,342 278
Executive Desk 2,399 1 2,399 120 5 456 38
Reception Table 1,599 2 3,198 160 5 608 51
Office Chair 1,799 11 19,789 989 5 3,760 313
Total 397,006 59,658 4,972

75
GWM Corp. Sched. J
Schedule of Utilities Expense
(Amounts in Philippine Peso)
For the years ending December 31,

Electricity Avg. Working Days 150 261 261 262 262


Avg. Cost per KwH 9.00 9.18 9.36 9.55 9.74

Hours
Used per
KwH Day 2021 2022 2023 2024 2025

Office
Light Bulbs (10 pcs) 0.50 7 4,730 8,386 8,554 8,758 8,933
Total (Electricity) 4,730 8,386 8,554 8,758 8,933

Water No. of Months 7 12 12 12 12


Cost for first 10 Cu.M 360.00 367.20 374.54 382.03 389.68
Total (Water) 2,520 4,406 4,495 4,584 4,676

Internet 1,699 1,699 1,699 1,699 1,699

Total Utilities
8,949 14,491 14,747 15,042 15,308
Expense

76
GWM Corp. Sched. K
Net Salaries Computation
(Amounts in Philippine Peso)
For the financial years 2022-2026

2022 2023 2024 2025 2026


Operations
Chief Executive Officer 350,000 630,000 661,500 694,575 729,304
Quality Assurance Manager 140,000 252,000 264,600 277,830 291,722
13th Month Pay 70,000 73,500 77,175 81,034 85,085
Less:
Employee Contributions 29,750 52,545 54,140 55,788 57,762
Net Salaries for Operations 530,250 902,955 949,135 997,650 1,048,349

General and Administrative


Finance Manager 140,000 252,000 264,600 277,830 291,722
Human Resource Manager 140,000 252,000 264,600 277,830 291,722
Sales Manager 140,000 252,000 264,600 277,830 291,722
Associates 91,000 163,800 171,990 180,590 189,619
Receptionist 91,000 163,800 171,990 180,590 189,619
Security Guard 63,000 113,400 119,070 125,024 131,275
13th Month Pay 95,000 99,750 104,738 109,974 115,473
Less:
Employee Contributions 56,779 102,121 107,551 112,550 118,745
Net Salaries for G&A 703,221 1,194,629 1,254,037 1,317,117 1,382,405

77
GWM Corp. Sched. L-1
Shedule of SSS, PHIC and HDMF - Employer Contribution
For the years 2022 to 2026

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 50,000 1 7 15,085 3,850 7,000 25,935
Quality Assurance Manager 20,000 1 7 12,110 1,925 2,800 16,835
Finance Manager 20,000 1 7 12,110 1,925 2,800 16,835
Human Resource Manager 20,000 1 7 12,110 1,925 2,800 16,835
2022

Sales Manager 20,000 1 7 12,110 1,925 2,800 16,835


Associates 13,000 1 7 7,805 1,251 1,820 10,876
Receptionist 13,000 1 7 7,805 1,251 1,820 10,876
Security Guard 9,000 1 7 5,425 866 1,260 7,551
Janitor 8,000 1 7 4,830 770 1,120 6,720
Total ₱ 89,390 ₱ 15,689 ₱ 24,220 ₱ 129,299

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 52,500 1 12 25,860 6,600 12,600 45,060
Quality Assurance Manager 21,000 1 12 21,780 3,465 5,040 30,285
Finance Manager 21,000 1 12 21,780 3,465 5,040 30,285
Marketing Head 21,000 1 12 21,780 3,465 5,040 30,285
2023

Sales Manager 21,000 1 12 21,780 3,465 5,040 30,285


Marketing Head 13,650 1 12 13,890 2,252 3,276 19,418
Receptionist 13,650 1 12 13,890 2,252 3,276 19,418
Marketing Head 9,450 1 12 9,810 1,559 2,268 13,637
Janitor 8,400 1 12 8,790 1,386 2,016 12,192
Total ₱ 159,360 ₱ 27,910 ₱ 43,596 ₱ 230,866

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 55,125 1 12 25,860 6,600 13,230 45,690
Quality Assurance Manager 22,050 1 12 22,800 3,638 5,292 31,730
Finance Manager 22,050 1 12 22,800 3,638 5,292 31,730
Marketing Head 22,050 1 12 22,800 3,638 5,292 31,730
2024

Sales Manager 22,050 1 12 22,800 3,638 5,292 31,730


Marketing Head 14,333 1 12 14,910 2,365 3,440 20,715
Receptionist 14,333 1 12 14,910 2,365 3,440 20,715
Marketing Head 9,923 1 12 10,320 1,637 2,381 14,339
Janitor 8,820 1 12 9,300 1,455 2,117 12,872
Total ₱ 166,500 ₱ 28,975 ₱ 45,776 ₱ 241,251

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 57,881 1 12 25,860 6,600 13,892 46,352
Quality Assurance Manager 23,153 1 12 23,820 3,820 5,557 33,197
Finance Manager 23,153 1 12 23,820 3,820 5,557 33,197
Marketing Head 23,153 1 12 23,820 3,820 5,557 33,197
2025

Sales Manager 23,153 1 12 23,820 3,820 5,557 33,197


Marketing Head 15,049 1 12 15,660 2,483 3,612 21,755
Receptionist 15,049 1 12 15,660 2,483 3,612 21,755
Marketing Head 10,419 1 12 10,830 1,719 2,500 15,050
Janitor 9,261 1 12 9,810 1,528 2,223 13,561
Total ₱ 173,100 ₱ 30,094 ₱ 48,065 ₱ 251,259

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 60,775 1 12 25,860 6,600 14,586 47,046
Quality Assurance Manager 24,310 1 12 25,350 4,011 5,834 35,196
Finance Manager 24,310 1 12 25,350 4,011 5,834 35,196
Marketing Head 24,310 1 12 25,350 4,011 5,834 35,196
2026

Sales Manager 24,310 1 12 25,350 4,011 5,834 35,196


Marketing Head 15,802 1 12 16,680 2,607 3,792 23,080
Receptionist 15,802 1 12 16,680 2,607 3,792 23,080
Marketing Head 10,940 1 12 11,340 1,805 2,625 15,771
Janitor 9,724 1 12 9,810 1,604 2,334 13,748
Total ₱ 181,770 ₱ 31,269 ₱ 50,468 ₱ 263,507

78
GWM Corp. Sched. L-2
Shedule of SSS, PHIC and HDMF - Employee Contribution
For the years 2022 to 2026

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 50,000 1 7 7,875 3,850 7,000 18,725
Quality Assurance Manager 20,000 1 7 6,300 1,925 2,800 11,025
Finance Manager 20,000 1 7 6,300 1,925 2,800 11,025
Human Resource Manager 20,000 1 7 6,300 1,925 2,800 11,025
2022

Sales Manager 20,000 1 7 6,300 1,925 2,800 11,025


Associates 13,000 1 7 4,095 1,251 1,820 7,166
Receptionist 13,000 1 7 4,095 1,251 1,820 7,166
Security Guard 9,000 1 7 2,835 866 1,260 4,961
Janitor 8,000 1 7 2,520 770 1,120 4,410
Total ₱ 46,620 ₱ 15,689 ₱ 24,220 ₱ 86,529

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 52,500 1 12 13,500 6,600 12,600 32,700
Quality Assurance Manager 21,000 1 12 11,340 3,465 5,040 19,845
Finance Manager 21,000 1 12 11,340 3,465 5,040 19,845
Marketing Head 21,000 1 12 11,340 3,465 5,040 19,845
2023

Sales Manager 21,000 1 12 11,340 3,465 5,040 19,845


Marketing Head 13,650 1 12 7,290 2,252 3,276 12,818
Receptionist 13,650 1 12 7,290 2,252 3,276 12,818
Marketing Head 9,450 1 12 5,130 1,559 2,268 8,957
Janitor 8,400 1 12 4,590 1,386 2,016 7,992
Total ₱ 83,160 ₱ 27,910 ₱ 43,596 ₱ 154,666

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 55,125 1 12 13,500 6,600 13,230 33,330
Quality Assurance Manager 22,050 1 12 11,880 3,638 5,292 20,810
Finance Manager 22,050 1 12 11,880 3,638 5,292 20,810
Marketing Head 22,050 1 12 11,880 3,638 5,292 20,810
2024

Sales Manager 22,050 1 12 11,880 3,638 5,292 20,810


Marketing Head 14,333 1 12 7,830 2,365 3,440 13,635
Receptionist 14,333 1 12 7,830 2,365 3,440 13,635
Marketing Head 9,923 1 12 5,400 1,637 2,381 9,419
Janitor 8,820 1 12 4,860 1,455 2,117 8,432
Total ₱ 86,940 ₱ 28,975 ₱ 45,776 ₱ 161,691

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 57,881 1 12 13,500 6,600 13,892 33,992
Quality Assurance Manager 23,153 1 12 12,420 3,820 5,557 21,797
Finance Manager 23,153 1 12 12,420 3,820 5,557 21,797
Marketing Head 23,153 1 12 12,420 3,820 5,557 21,797
2025

Sales Manager 23,153 1 12 12,420 3,820 5,557 21,797


Marketing Head 15,049 1 12 8,100 2,483 3,612 14,195
Receptionist 15,049 1 12 8,100 2,483 3,612 14,195
Marketing Head 10,419 1 12 5,670 1,719 2,500 9,890
Janitor 9,261 1 12 5,130 1,528 2,223 8,881
Total ₱ 90,180 ₱ 30,094 ₱ 48,065 ₱ 168,339

Monthly No. of
Position Qnty. SSS PHIC HDMF Total ER
Salary Months
Chief Executive Officer 60,775 1 12 13,500 6,600 14,586 34,686
Quality Assurance Manager 24,310 1 12 13,230 4,011 5,834 23,076
Finance Manager 24,310 1 12 13,230 4,011 5,834 23,076
Marketing Head 24,310 1 12 13,230 4,011 5,834 23,076
2026

Sales Manager 24,310 1 12 13,230 4,011 5,834 23,076


Marketing Head 15,802 1 12 8,640 2,607 3,792 15,040
Receptionist 15,802 1 12 8,640 2,607 3,792 15,040
Marketing Head 10,940 1 12 5,940 1,805 2,625 10,371
Janitor 9,724 1 12 5,130 1,604 2,334 9,068
Total ₱ 94,770 ₱ 31,269 ₱ 50,468 ₱ 176,507

79
GWM Corp. Sched. L-3
Shedule of SSS, PHIC and HDMF - Contributions
For the years 2022-2026

Year 2022 SSS PHIC HDMF Total


Employer's Share ₱ 89,390 ₱ 15,689 ₱ 24,220 ₱ 129,299
Employee's Share 46,620 15,689 24,220 86,529
Total ₱ 136,010 ₱ 31,378 ₱ 48,440 ₱ 215,828

Year 2023
Employer's Share ₱ 159,360 ₱ 27,910 ₱ 43,596 ₱ 230,866
Employee's Share 83,160 27,910 43,596 154,666
Total ₱ 242,520 ₱ 55,820 ₱ 87,192 ₱ 385,532

Year 2024
Employer's Share ₱ 166,500 ₱ 28,975 ₱ 45,776 ₱ 241,251
Employee's Share 86,940 28,975 45,776 161,691
Total ₱ 253,440 ₱ 57,950 ₱ 91,552 ₱ 402,942

Year 2025
Employer's Share ₱ 173,100 ₱ 30,094 ₱ 48,065 ₱ 251,259
Employee's Share 90,180 30,094 48,065 168,339
Total ₱ 263,280 ₱ 60,188 ₱ 96,129 ₱ 419,597

Year 2026
Employer's Share ₱ 181,770 ₱ 31,269 ₱ 50,468 ₱ 263,507
Employee's Share 94,770 31,269 50,468 176,507
Total ₱ 276,540 ₱ 62,537 ₱ 100,936 ₱ 440,013

80
GWM Corp. Sched. M
Cost of Goods Sold
(Amounts in Philippine Peso)
For the years ending December 31,

2022 2023 2024 2025 2026


Office Supplies
Bond Paper(500pcs) 16,700 17,034 17,375 17,722 18,077
Scissors 498 507 518 528 539
Cutter 155 158 161 164 168
Stapler 870 887 905 923 942
Staple Wire 1,138 1,160 1,183 1,207 1,231
Pencils (12pcs) 3,838 3,914 3,993 4,072 4,154
Ballpens (3pcs) 1,575 1,607 1,639 1,671 1,705
Clear Tape 800 816 832 849 866
Calculator 2,540 2,591 2,643 2,695 2,749
Paper Clip (1 box) 650 663 676 690 704
Tape Dispenser 898 915 934 952 971
File Folder 475 485 494 504 514
Waste Bin (3pcs) 1,000 1,020 1,040 1,061 1,082
Total Supplies Expense 31,135 31,758 32,393 33,041 33,702

81
GWM Corp.
Notes to Financial Statements
(Amounts in Philippine Peso)
For the years ending December 31,

1 Other Current Assets


2022 2023 2024 2025 2026
Other Current Assets
Prepaid Expenses - Business Permit 2,365 2,365 2,365 2,365 2,365
Prepaid Insurance 2,000 2,000 2,000 2,000 2,000
Prepaid Rent
Other Current Assets 4,365 4,365 4,365 4,365 4,365

2 Input Tax
2022 2023 2024 2025 2026
Beginning Balance - - - - -
Inventories 106,854 190,412 196,264 199,844 206,063
Insurance 240 240 240 240 240
Utilities 1,074 1,739 1,770 1,805 1,837
Property, Plant, and Equipment 47,641 - - - -
Current year Input Tax 155,809 192,391 198,274 201,889 208,140
Used Input Tax to pay Output Tax 155,809 192,391 198,274 201,889 208,140
Ending Balance - - - - -

3 VAT and Employee Benefits Payable


2022 2023 2024 2025 2026
Output Tax 386,617 702,323 737,965 766,018 805,189
Input Tax, carried forward - - - - -
Input Tax, current year 108,168 192,391 198,274 201,889 208,140
VAT Payable, net of Input Tax 230,809 509,932 539,691 564,128 597,050
Less: Payment during the year 173,106 382,449 404,769 423,096 447,787
VAT Payable, as of December 31 57,702 127,483 134,923 141,032 149,262

2022 2023 2024 2025 2026


Employee Benefits Payable 19,990 23,150 24,204 25,258 26,312
Less: Payment during the year 14,993 17,363 18,153 18,944 19,734
Employee Benefits Payable, end of year 4,998 5,788 6,051 6,315 6,578

4 Taxes, Permits and Licences


2022 2023 2024 2025 2026
Permits and Licences, First year 3,880 - - - -
Permits and Licenses, Succeeding Years - 2,365 2,365 2,365 2,365
Total 3,880 2,365 2,365 2,365 2,365

82
5 Advertising Expense
2022 2023 2024 2025 2026
Other expenses allocated to marketing 7,000 12,120 12,241 12,364 12,487
Total Advertising Expense 7,000 12,120 12,241 12,364 12,487

6 Provision for Income Tax Computation


2022 2023 2024 2025 2026
Taxable Income, Net income before Tax 231,760 779,092 864,122 907,047 1,001,319
20% of Taxable income 46,352 155,818 172,824 181,409 200,264
Total Income Tax Payable 46,352 155,818 172,824 181,409 200,264
Less: Payments in first 3 quarters 34,764 116,864 129,618 136,057 150,198
Income Tax Payable, as of December 31 11,588 38,955 43,206 45,352 50,066

83
g. Financial Analysis

h. Financial Ratios
GWM Corp.
PROFITABILITY RATIOS

2022 2023 2024 2025 2026

Gross Margin Ratio 43.63% 48.15% 48.83% 49.24% 49.91%


Gross Margin 1,236,993 2,479,645 2,642,505 2,766,230 2,947,258
÷ Sales 2,835,193 5,150,367 5,411,746 5,617,462 5,904,721

Operating Margin Ratio 5.72% 10.59% 11.18% 11.30% 11.87%


Net Income 162,232 545,365 604,885 634,933 700,923
÷ Sales 2,835,193 5,150,367 5,411,746 5,617,462 5,904,721

Expenses to Sales Ratio 35.46% 2.29% 1.41% 1.36% 1.29%


Operating Expenses 1,005,233 117,950 76,463 76,464 76,465
÷ Sales 2,835,193 5,150,367 5,411,746 5,617,462 5,904,721

Return on Assets 10.74% 26.50% 23.67% 20.66% 19.21%


Net Income 162,232 545,365 604,885 634,933 700,923
÷ Total Assets 1,509,867 2,057,779 2,555,768 3,073,307 3,649,610

Return on Equity 11.35% 29.23% 25.74% 22.22% 20.50%


Net Income 162,232 545,365 604,885 634,933 700,923
÷ Total Partner's Equity 1,429,785 1,866,077 2,349,985 2,857,932 3,418,670

GWM Corp.
LIQUIDITY RATIOS

2022 2023 2024 2025 2026

Current Ratio 14.27 : 1.00 9.13 : 1.00 11.22 : 1.00 13.4 : 1.00 15.25 : 1.00
Current Assets 1,143,081 1,750,652 2,308,299 2,885,496 3,521,457
÷ Current Liabilities 80,082 191,702 205,783 215,375 230,939

Quick Asset Ratio 13.82 : 1.00 8.94 : 1.00 11.03 : 1.00 13.22 : 1.00 15.07 : 1.00
Cash 1,106,914 1,713,229 2,269,860 2,846,435 3,481,317
÷ Current Liabilities 80,082 191,702 205,783 215,375 230,939

GWM Corp.
SOLVENCY RATIOS

2022 2023 2024 2025 2026

Debt to Equity Ratio 0.06 : 1.00 0.1 : 1.00 0.09 : 1.00 0.08 : 1.00 0.07 : 1.00
Total Liabilities 80,082 191,702 205,783 215,375 230,939
÷ Total Partner's Equity 1,429,785 1,866,077 2,349,985 2,857,932 3,418,670

Debt to Asset Ratio 0.05 : 1.00 0.09 : 1.00 0.08 : 1.00 0.07 : 1.00 0.06 : 1.00
Total Liabilities 80,082 191,702 205,783 215,375 230,939
÷ Total Assets 1,509,867 2,057,779 2,555,768 3,073,307 3,649,610

84
i. Break-even Analysis
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2022

GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 32.75
Direct Materials 55.00
VAT 23.88

Contribution Margin (CM) 87.37

Fixed Costs
Operational Overhead 177,500.00
General & Administrative 1,005,233.18
Total Fixed Costs 1,182,733.18
÷ Contribution Margin 87.37
BEP in Units 13,537.33

Rounded-up BEP in Units 13,538.00

GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2022

Product Units Sold CM


GoWine 13,538 1,182,792
Total 13,538 1,182,792
Less: Fixed Costs 1,182,733

Net Income 59

85
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2023

GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 32.24
Direct Materials 56.65
VAT 23.88

Contribution Margin (CM) 86.23

Fixed Costs
Operational Overhead 181,000.00
General & Administrative 1,700,553.02
Total Fixed Costs 1,881,553.02
÷ Contribution Margin 86.23
BEP in Units 21,819.38

Rounded-up BEP in Units 21,820.00

GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2023

Product Units Sold CM


GoWine 21,820 1,881,607
Total 21,820 1,881,607
Less: Fixed Costs 1,881,553

Net Income 54

86
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2024

GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 33.86
Direct Materials 58.35
VAT 23.88

Contribution Margin (CM) 82.91

Fixed Costs
Operational Overhead 184,570.00
General & Administrative 1,778,383.26
Total Fixed Costs 1,962,953.26
÷ Contribution Margin 82.91
BEP in Units 23,675.97

Rounded-up BEP in Units 23,676.00

GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2021

Product Units Sold CM


GoWine 23,676 1,962,956
Total 23,676 1,962,956
Less: Fixed Costs 1,962,953

Net Income 3

87
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2025

GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 36.00
Direct Materials 60.10
VAT 23.88

Contribution Margin (CM) 79.02

Fixed Costs
Operational Overhead 188,211.40
General & Administrative 1,859,182.86
Total Fixed Costs 2,047,394.26
÷ Contribution Margin 79.02
BEP in Units 25,910.89

Rounded-up BEP in Units 25,911.00

GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2021

Product Units Sold CM


GoWine 25,911 2,047,403
Total 25,911 2,047,403
Less: Fixed Costs 2,047,394

Net Income 9

88
GWM Corp.
Break-even Analysis (BEP in Units)
(Amounts in Philippine Peso)
For the year 2026

GoWine
Sales Price 199.00
LESS: Variable Costs
Direct Labor 37.79
Direct Materials 61.90
VAT 23.88

Contribution Margin (CM) 75.43

Fixed Costs
Operational Overhead 191,925.63
General & Administrative 1,945,938.85
Total Fixed Costs 2,137,864.48
÷ Contribution Margin 75.43
BEP in Units 28,344.22

Rounded-up BEP in Units 28,345.00

GWM Corp.
Break-even Analysis (Income Statement)
(Amounts in Philippine Peso)
For the year 2021

Product Units Sold CM


GoWine 28,345 2,137,923
Total 28,345 2,137,923
Less: Fixed Costs 2,137,864

Net Income 59

89
j. Average Annual Return on Investment, Payback Period, and Net Present Value
GWM Corp.
Average Annual Return on Investment

2022 2023 2024 2025 2026

Return on Investment 12.48% 41.95% 46.53% 48.84% 53.92%


Net Income 162,232 545,365 604,885 634,933 700,923
÷ Initial Cash Investment 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000

The average annual ROI for the 5 year operations is 48%

GWM Corp.
Payback Period

Pre-Op 2022 2023 2024 2025 2026

Initial Cash Investment (1,300,000)


Net Income 162,232 545,365 604,885 634,933 700,923
Depreciation 30,220 59,658 59,658 59,658 59,658
Accumilated Investment (1,300,000) (1,107,548) (502,525) 162,018 856,610 1,617,191

The payback period will be reached on the 3rd year, 3rd month, and 24th day since its first day of operations.

GWM Corp.
Net Present Value - with a discount rate from a
T-bill of 1.36% (current rate from BSP)

Year 0 2022 2023 2024 2025 2026

Discount Factor - 0.9866 0.9733 0.9603 0.9474 0.9347


Initial Cash Investment (1,300,000) - - - - -
Cash Flow 1,106,914 606,315 556,631 576,575 634,882
Discounted Cash Flow (1,300,000) 1,092,062 590,153 534,525 546,248 593,417

The NPV of the 5 year project is ₱2,056,404 while the IRR is 54.17%.

90
Chapter 8

Risk Assessment

A. Success Factors

a. Partnership with known supplier

Since the company has partnered with Novellino, more consumers would be induced to buy

since the brand has already proven its quality throughout the years.

b. Increase of Market Demand

The increase of the demand for single-serve packaging will cater more profitability for GWPS

Corp., as it will establish the existence of the franchise for the product, its unique market allows

the GoWines brand to take advantage of this as the first to offer a single-serve product locally.

c. Quality Assurance of Products and Customer Satisfaction

The success of the GoWines brand is determined as the product and services offered at its

highest quality. Since the fruit wines are made from the provinces, it is rest assured that the

fruits used are fresh from the farm. Likewise its growing conditions, time of harvest and

processing are well-managed.

91
d. Rise of Environmental Movement

The GoWines brand will provide an eco-friendly single-serve product. The manufacturers can

also be persuaded to use products that are eco-friendly thus, promoting environmental

awareness. The materials used can also be reusable.

B. Risk Factors

Currently, there is no popular eco-friendly single-serve product made from bamboo fiber-that

looks and real glassware. Being the pioneer in this market creates a possibility that hesitant

customers will not appreciate the outcome. Also, consumers might prefer buying in a bottle

since the volume is greater rather than buying wine by the glass.

C. Recommendation

Based on the findings and conclusions presented, the following recommendations are

suggested:

• The proponents recommend that once the brand GoWines is established and

succeeded, it should partner up with more renowned brands as this is a great opportunity for

the company to grow. The product will be competitive on a global scale once established

brands are affiliated.

• The proponents suggest that the range of products should be expanded thus partnering

up with other liquor and beverages dealers is ideal for the future. Expanding the range of

products offered by the company expands the market even more.

92
• The proponents recommend having more investments in the future. The Cash account

in the later years will be higher, it is ideal to use the cash as an investment to put the money

into work and potentially increase wealth. This may allow the cash to outpace inflation and

increase in value. Also, the proponents may opt to sell more Ordinary Stocks, add Preferred

Stocks and pay higher dividends.

• The proponents suggest that a website for the company product is needed. It is highly

recommended, nowadays online marketing is a must, so creating a website for the product will

advertise the product as well as using social media functions. It will also serve as a customer

feedback website where the company will know what the customers want and what’s there to

improve.

93

You might also like