Final Feasibility Final

DR. FILEMON C.
AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS

GOLDENGATE SUBDIVISION, TALON 3, LAS PIÑAS CITY
TEL. NO. 805-84-25
Chapter I
Project Background
A. Name of business
The name of business is DIY “Dough – it- Yourself” Doughnut, Inc.
B. Logo
This logo signifies the uniqueness and differentiation from any other doughnut vendors.
“Create/customize your own doughnuts” is the very tag line when you heard DIY
“Dough – it – Yourself” Doughnuts, Inc.
C. Location
The business is located at North Gate Avenue Cyberzone, FilinvestCorp. City
Muntinlupa City, Metro Manila.
D. Vision
The organization vision statement is to become a dominant worldwide of high quality
doughnuts and compatible high quality products.
E. Mission
The organization mission statement is to make and serve the freshest, most delicious
coffee and donuts quickly and courteously in modern, well merchandised stores.
F. Objective
The objective of DIY Doughnuts Inc.is to offer a high standard quick dining experience
with innovative product choices that will not only suit the taste of consumers with a sweet
tooth but also the taste of vegetarian and health conscious consumers.
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DR. FILEMON C. AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS
TEL. NO. 805-84-25
G. Project description
The project descriptions of the business are customized and ready-made doughnuts
available in sweet, fruits and vegetable coating. And also, the proposed freestanding DIY
Doughnuts, Inc. is to provide drive thru and delivery services.
Chapter II
Market Study
The business world is now a vast area where there are various products competing with each
other. Every business must respond to the increasing demand of the market. One way of making your
business responsive to every customer is by giving them satisfaction. With these trends, marketing
plays a key role in placing a business in the forefront.
Market study is aimed at determining the extent to which goods and services to be generated
by the project are needed or demanded and to design the appropriate marketing strategies and plans
that will help ensure that a project’s target users are reached and will accept the project outputs.
This chapter covers the objectives of the market study, the research techniques and
methodology, the historical and projected demand and supply and also the SWOT analysis which is
used to determine the feasibility of the product.
Objectives of the Study
The general objective of the study is to determine the market feasibility of the proposed
product. Specifically, it attempts to discuss the following objectives:
1. To identify the target market and marketing channels in which the proposed product will be
distributed;
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2. To determine what will be the historical and projected demand and supply;
3. To build up information about the strength, weaknesses, opportunities and threats of the
product in the line 9of business as well as the size, nature, quality and price of the product to
be sold and;
4. To plan the proper strategies and programs on how the proposed product will be available in
the market.
A. MARKET DESCRIPTION
The company offers two major divisions of doughnuts, the ready-made and customized
doughnuts. The ready-made doughnut consists of plain, sugar free, fruits & vegetable flavors, while
on the other hand; customized doughnuts are depending on the taste preferences and desires of
the customers that are available in the counter area where you can choose different flavor and
design it whatever you want. It also offers coffees and milk teas as a partner of the doughnut. This
product is best for doughnut lovers, health conscious person, as well as the people who are on a
diet that would like to maintain their physical fitness. We provide a service to our customers who
want their doughnut to be customized in their own designs. This would be a product that” people
would die looking for “of the customers because of its unique and delicious taste to satisfy beyond
customers’ expectations.
B. MARKET SURVEY RESULT
Market survey results shows the number of percentages based on the questionnaires
answered by the respondents
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1. Do you want doughnut?
No
38%
Yes
62%
 62% respondents answered that they are willing to patronize the doughnuts
corner.
 38% respondents answered that they are not willing to patronize the coffee
and doughnuts corner.
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2. How do you want your doughnut to be made?
Customized
32%
Ready-made
68%
 32% of respondents answered that they to patronize the customized doughnuts.
 68% of respondents answered that they want ready-made doughnuts.
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3. Are you familiar with customized doughnuts?
Yes
21%
No
79%
 21% answered they are familiar with the customized doughnuts.
 79% answered they are not familiar with the customized doughnuts.
4. Do you like to customize your own doughnut?
Yes
45%
No
55%
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 45% answered they want to customized their own doughnuts.
 55% answered they want to customized their own doughnuts.

5. Which flavor do you prefer for your doughnut?
Veggie
22% Sweet-Coated
34%
Fruity
13%
Sugar-Free
31%
 34% answered they prefer the sweet-coated flavor for their doughnuts.
 31% answered they prefer the sugar free flavor for their doughnuts.
 22% answered they prefer the veggie flavor for their doughnuts.
 13% answered they prefer the fruity flavor for their doughnuts.

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6. Which is more convenient for you?
Drive-tru
15%
Delivery
85%
 15% answered that they would be more convenient if the service is drive thru.
 85% answered that they would be more convenient if the service is drive thru.
7. Which beverages you want to match to your customized doughnut?
Milk-Tea
6%
Coffee
94%
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 94% answered that they would want to match their customized doughnuts with a coffee.
 6% answered that they would want to match their customized doughnuts with a coffee.
8. How much are you willing to pay for customized doughnut?
Php 31-40
25%
Php 25%
75%
 75% answered that they are willing to pay their customized doughnuts for Php 25-35.
 25 % answered that they are willing to pay their customized doughnuts for Php 31-40.
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9. If ever our product will exist in the market, are you going to patronize it?
No
46% Yes
54%
 54% answered that they are going to patronize our product.
 46 answered that they are going to patronize our product.
C. CC. COMPETITOR ANALYSIS
(1) Direct Competitor
There are many providers of doughnuts at present like JCO, Krispy Kreme, Dunkin Donuts,
Mister Donuts, and many more. DIY “Dough – it – Yourself” Doughnut, Inc. will only be a beginner
in the doughnut industry in which may become a threat to the said companies. The edge of the
proposed project is its uniqueness on how the product is created since it is new to the market.
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(2) Indirect Competitor
McDonalds, StarBucks, Jollibee, bake shops and convenient stores will be a threat to the
company in generating sales since it offers food that is not available to the company.
D. DEMAND AND SUPPLY ANALYSIS
Since we are located along the National Highway and we are surrounded by different
companies, we expect more customers. Sales are expected to increase by stop-over done by
employees.
We have specifically targeted segments of people with an appreciation for delicious desserts
and a need for comfort and relaxation, DIY Doughnuts is a haven for the busy & successful who want
to treat themselves to something soothing and a little sinful. It doesn’t take a lot of time, yet is so
rewarding. These people will value high quality products presented without pretension. Our
customers will also appreciate the dun and fast service.
Demand Figures Data
Total % of 2014 2015 2016 Average growth Rate
Population Population
Local 100% 12.4% 13.64% 16.37% 14.14%
Total 100% 12.4% 13.64% 16.37% 14.14%
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Demand Projection for the Next 5 Years
Year Operation Target Rate Total Projected Demand
Year 1 1% 1,116,700
Year 2 2% 1,228,370
Year 3 5% 1,842,555
Year 4 5%
1,934,683
Year 5 5% 2,031,417
Supply Projection for the next 5 Years
Year Operation Total Projected Supply
Year 1 564,000
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Year 3 581,033
Year 4 610,085
Year 5 640,589
Demand and Supply Analysis
Percent
Year Demand Supply D-S Gap Unsatisfied
Projected =(D-S GAP/D)x 100%
Year 1 1,116,700 564,000 552,700 49%
Year 2 1,228,370 569,640 558,730 45%
Year 3 1,842,555 581,033 1,261,522 68%
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E. SWOT ANALYSIS
Strengths
 New and different varieties of doughnuts have been introduces which shall give us the health
benefit of product differentiation.
 Location of our shop will be placed in such an area which can be easily accessible to all parts of
the City.
 Experienced staff is hired that will help us in providing quality food and service to our
customers.
 Ambiance of place and the feeling of being in their native place while enjoying their food is
itself experience which gives us an advantage over others.
 Offers coffee and doughnuts with an affordable price.
 Offers customized doughnuts that depend on the taste preferences and desires of the
customers.
 Offers a typical type of doughnut for health conscious person.
Weaknesses
 Doughnuts products are perishable items need to be sold as soon as possible to gain maximum
benefits. The customers also prefer fresh products.
 Our shop has introduces few items from the possible product lines. This limited menu can be
seen as a weakness.
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 Financing- preliminary estimates of sales and expenditures suggest that it will remain
financially stable. However unforeseen expenditure or poor sales will threaten cash position,
which will threaten cash position, which will be particularly vulnerable in one year.
 A newly established one; the business may not be patronized because it is not well known.
Opportunities
 Expansion of the product line in the future with the introduction of more Filipino cakes
 Growing concern for health and multigrain food products shall become a reason for the reason
for the increase in our sales as we always provide freshly made cakes
 Growing market- bakery industry is growing at a fast speed and demand for quality food is
never ending.
 Potential to become a premier food provider- this is because of the experience and expertise
staff we deliver quality cake products. Also the use of technology like surface technology on
table makes it quite innovative and a new experience.
Threats
 Local competition (existing and potential): severe competition in the industry with well-
established players like Contis and Starbucks shop.
 Economic downturn: the strong domestic economy has been good for the bakery industry.
Continued growth is anticipated. However, unforeseen or unanticipated economic recession
would reduce disposable income.
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a. Market Share Analysis
The geographic area in which the store is located will be the starting point of DIY “Dough – it –
Yourself “Doughnut, Inc. in creating share in the market. The store is located at Ground Floor North
Gate Avenue Cyberzone, Filinvest Corp. City Muntinlupa City, Metro Manila, a business area in which
the employee of each may avail our products because other competitors are far from this area.
Market Share
The figure below illustrates the market share for coffee and doughnuts corner.
Market Share
Starbucks Conti's Bakeshop DIY Doughnut others
3%
27%
48%
22%
Market Share for DIY Doughnuts
As presented in Figure above, the proposed business gathered 48% of the market share
because it can provide unique, healthy and affordable products.
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F. PROJECTED SALES
Unit Sales Projection
YEAR 2014 2015 2016 2017 2018
Expected unit
sold 558,350 614,185 737,022 1,105,533 1,658,299
Ready-made 379,678 417,646 626,469 939,703 1,409,555
Sweet-Coated 129,091 142,000 212,999 319,499 479,249
Sugar-Free 117,700 129,470 194,205 291,308 436,962
Fruity 49,358 54,294 81,441 122,161 183,242
Veggie 83,529 91,882 137,823 206,735 310,102
Customized 178,672 196,539 235,847 353,771 530,656
Coffee 367,394 404,134 606,201 909,301 1,363,951
Milk-Tea 23,451 25,796 38,694 58,040 87,061
Beverages 390,845 429,929 515,915 773,873 1,160,810
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G. MARKET STRATEGY
Marketing consists of all activities designed to generate and facilitate any exchange with
the intent to satisfy human needs and wants. It can also be defined as a total system of
business activities that include planning, selling, distributing and promoting products, services,
and ideas to consumers to achieve organizational objectives.
The objective of the business is the purpose for which the business is established. It is
generally believed that the main objective of business is to make profit, avoid loss and to
establish a strong position in the market. To accomplish this, the management should know
the use and implementation of the appropriate marketing strategies in launching the product
to the market.
The marketing program includes the determination of the selling price, which will be
determined by the cost-plus method of accountants; product quality, which refers to the
product to be marketed; packaging which gives a sense of distinction of the product and
attractive in the eyes of the consumers awareness and desire the product.
(1)Target market
 Employees – call center agents
 Businessman
 Individual
(2 )Sales Forces
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The company when established will have enough markets for the said area and
expect to take all expected doughnut share for the said location.
(3) Pricing Strategy
READY-MADE DOUGHNUTS
Sweet Coated Php 20.00 Sugar Free Php 25.00
Fruity Php 30.00 Veggie Php 30.00
CUSTOMIZED DOUGHNUTS Php 15.00
BEVERAGES
Coffee Php 70.00 Milk Tea Php 60.00
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(4) Ads and Promotion
There is not much personal selling in DIY Doughnut. Instead, customers come in with
the brand awareness of the doughnuts. The store emphasizes its customized doughnuts but
other than that not much personal selling goes on. Product giveaways are held at grand
openings to improve knowledge of Doughnut products. On certain occasions DIY Doughnut
sells a special flavored doughnut for a limited period of time. Currently, DIY Doughnut is
offering a veggie and fruity doughnut.
Advertising Promotion was highly done by the word of mouth advertising of past
customers. DIY Doughnut spends very little, if anything, on advertising. DIY Doughnut strongly
believes that the buzz created from public relations, at a store opening, is enough to bring the
customers to its doughnut shops. Also, grand openings of DIY Doughnut have promoted
doughnut awareness through flyers and tarpaulin.
What Who When Where How

1.Flyers The proponents It will be Along Alabang It will be distributed to
will be the one who distributed three area and in the all potential customers
will distribute the (3) weeks before commercial place. through personal
flyers. the operation. distribution.
3.Internet The proponents 10 days before sulitsuki@yahoo.c The facts regarding the
Marketing the operation. om proposed product will
diydonuts@gmail. be posted in the
com internet.
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4.Free taste The proponents First week after At the public It will be conducted at
the launching of place and malls. the mall in its first week.
the business.
5.Product All the members of It will be done The business Introducing the product
Launching the company. on the opening location. by a simple program
of the business. with the use of promo
materials.
(4) Marketing Mix
DIY Doughnuts will have this following marketing mix in the products and services.
 Free WIFI, Discount card, Free gadget charging, Free water
Chapter III
TECHNICAL STUDY
The technical aspect encompasses the manufacturing process, labor requirements, machinery
and other equipment, plant location and its layout and other things present in manufacturing the
proposed product in order to make it available to the consumers. This chapter discusses the
manufacturing process of the “DIY Doughnut, Inc. Being the focal point of the technical study,
efficiency and effectiveness of allocating available resources should be considered. The estimated cost
of the proposed business should be indicated so that it can be favorably compare with the existing
competitors.
This chapter aims to determine the sufficient information about the manufacturing process and
set the necessary tools and equipment needed for the production of the proposed product. Below are
the planned goals of the technical study:

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1. To describe the nature of the product and its various uses;
2. To discuss the manufacturing process of the product;
3. To determine the raw materials needed, labor requirement, supplies and production schedule
necessary for the production;
4. To ascertain the availability and accessibility of the resources needed; and
5. To set up the plant location, its size and the layout of the firm.
A. PRODUCT SPECIFICATION
Product is something produced or manufactured by a firm. Every business aims to establish a
name in the market through the introduction of new and unique product which will be marketed to
the consumers to satisfy their needs and wants. The proposed product to be produced by SJB
Manufacturing Enterprise is DIY, “Dough – it – Yourself”, Inc.
DIY,“Dough – it – Yourself”, Inc.is a new variant of doughnut. It is made up of flour, mixed with
fruits and vegetables that will satisfy the taste of the consumers.It is packed and sealed in a paper
bags and boxes with the product label to secure the product. The nutritional values that it offers have
great advantages which lead the proposed product to be different from others.
B. PRODUCTION PROCESS
1. Ready-made Doughnuts
A. Sugar-coated Doughnuts– Whole Wheat Cinnamon Sugar Holes
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Ingredients:
1-1/2 cup whole wheat flour
3/4 teaspoon baking powder
3/4 teaspoon baking soda
Dash of salt
3/4 cup (2 percent) Greek yogurt
2 tablespoons vegetable oil
1-1/2 teaspoon vanilla extract
1 egg
2 tablespoons brown sugar
1/2 cup sugar
3 - 4 tablespoons cinnamon
1 tablespoon melted butter
Yields about 24 donut holes
Directions:
1. Preheat your oven to 400 degrees F. Grease a mini muffin pan with non-stick cooking spray
and set it aside.
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2. In a large bowl, mix together the flour, baking powder, baking soda and salt. Add the egg, oil,
Greek yogurt, vanilla and brown sugar until the mixture is fully combined. It will be a little
thicker than a muffin batter. If it's too thick, add in a bit of milk.
3. Using your hands, roll the dough into little balls and place them in the greased muffin pan.
4. Bake donuts for about 10 - 11 minutes, or until they are golden brown. Let them cool for about
1 minute.
5. Mix together the cinnamon and sugar. Using a pastry brush, brush each donut with melted
butter, then, dip in the cinnamon sugar to coat. Repeat until all of the donuts have been
covered.
B. Sugar-Free Doughnut- Gluten Free Chocolate Glazed Baked Doughnuts
1/2 cup + 1 Tbsp oat flour
1/2 cup + 2 Tbsp sweet rice flour
3 Tbspvegetable oil
1/2 cup granulated sugar
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2 large eggs
1/2 cup + 3T milk
1/4 cup unsweetened cocoa powder
2 tsp vanilla
1/2 tsp salt
1 tsp baking powder
for the glaze:
1/2 cup powdered sugar
1 Tbsp unsweetened cocoa powder
1 Tbsp milk
1/2 teaspoon vanilla
sprinkles (optional, but not really)
Servings: 24 pieces
Procedures:
1. Preheat your oven to 350 degrees and grease your donut pan.
2. Combine the oat flour, sweet rice flour, sugar, cocoa powder, salt & baking powder in a medium
sized bowl.
3. In a small bowl, whisk together eggs, milk, vanilla & oil.
4. Stir wet ingredients into dry ingredients, just until combined. Mixture may be a bit lumpy & that’s
ok. Do not overmix.
5. With a spoon, spatula or piping bag, fill the donut pan.
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6. Bake for 20-25 minutes. The donuts are done when testing with a toothpick reveals a slightly moist
toothpick.
7. Let them cool in the pan for 5 minutes, then, turn out onto a cooling rack.
8. To make the glaze, combine everything but the sprinkles and whisk (with a fork is fine) until
smooth. When the donuts have cooled, turn upside down, dunk in icing. Sprinkle the tops with
sprinkles and let the glaze set.
C. Vegetable Doughnut
Potato Doughnuts
Ingredients:
3tbsp Crisco shortening
¾ cup sugar
3 egg yolks
1 egg white
½ tsp salt
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1 cup mashed potatoes
½ cup milk
2 ½ cups flour
3tsps baking powder
½ tsp mace
½ tsp nutmeg
Peanut or vegetable oil for frying
Servings: 24 pieces
Procedures:
Combine Crisco and sugar. Add egg yolks and white, well beaten.
Add mashed potatoes and milks. Sift flour, baking powder, salt and spices together. Add to first
mixture, working in more flour if needed.
Roll out on a lightly floured surface and cut using a doughnut center or round biscuit cutters (one
large outer one with a small one in center for the donut hole).
Fry in a deep fryer at 365 F, reducing heat if donuts are browning too quickly. Turn once. Transfer to
paper towel and sprinkle immediately with confectioner’s sugar; alternatively, fill a small brown bag
with ½ cup granulated sugar with ½ tsp cinnamon and shake to coat. Or the donuts may be glazed
with confectioner’s icing.
C. Fruit Doughnuts
Banana Blue-Berry Doughnut
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Ingredients:
1 cup Mashed Ripe Banana (Roughly 2 small bananas)
1/2 cup Sugar
1/2 cup Fat Free Greek Yogurt (lactose-free brand)
1/4 cup Unsalted Soy Butter (Melted)
2 Eggs (Room Temperature)
1 teaspoon Pure Vanilla Extract
2 cups All-Purpose Flour
1 teaspoon Baking Powder
1/2 teaspoon Baking Soda
1/4 teaspoon Salt
1 cup fresh blueberries
Servings: 24 pieces
Instructions:
1. Preheat the oven to 325F
2. Using your electric mixer with the whisk attachment, add the mashed banana, sugar and yogurt.
Mix until incorporated.
3. Add melted butter, eggs and vanilla extra and mix.
4. Add flour, baking powder, baking soda and salt to the batter and mix until just incorporated.
5. Using a spatula, fold in the chocolate chips.
6. Scoop the batter into piping bag, snip the end to leave an opening.
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7. Grease doughnut baking pan and pipe 3/4 full the batter into each doughnut mold.
8. Optional: Sprinkle cinnamon sugar mixture on top of each doughnut batter before baking.
9. Bake for 12 to 15 minutes. Remove from the pan and allow cooling before eating.
b. Customized Doughnuts
Regular Dough
Ingredients:
2 c. milk
1/2 c. sugar
2 tsp. salt
2 pkg. dry yeast dissolved in 1/4 c. water
7 c. flour
2 eggs
1/2 c. butter
Servings: 72 pieces
Procedures:
Scald milk, sugar and butter. Cool. Add yeast, then other ingredients and work dough until smooth
and spongy. Rise 1 1/2 to 2 hours. Roll on floured board, cut donuts, let rest 15 minutes and fry in
deep fat, then glaze.
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DIY, Toppings for Regular Dough:
Vegetables Fruits Others:
- Carrots - Cherry - Dark Chocolate
- Malunggay - Mango - White Chocolate
- Squash - Corn - Sprinkles
- Potato - Lychee - Cadbury
-Strawberry - Cheese
-Grapes - Cashew Peanut
- Corn
This picture shows the different toppings offered by the proposed business.
-Cherry
-Dark Chocolate
-White Chocolate
-Sprinkles -Corn
-Cadbury
-Mango
-Cheese Crèm -Lychee
-Avocado
-Cashew Peanut
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B. DIY, Beverages
1. Milk
A. DIY, Hot Cinnamon Milk Mix
Ingredients
4 1/2 cups powdered milk
1 1/2 cups coffee creamer (Instant Vanilla, powdered)
2 cups sugar
1 1/2 tbsps cinnamon
Instructions
Combine all of the ingredients into a large bowl with a whisk. Store mix in a sealed air tight container.
To prepare: mix ⅓ cup of mix in to a mug with 1 cup hot water.
Good for 25 servings.
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1. DIY, Coffee Tea
Prep Time: 10 minutes
Cook Time: 2 minutes
Total Time: 12 minutes
Yield: 10 servings
Ingredients:
2 cup Folgers classic roast coffee, brewed extra strong
3 cups milk dips in jasmine tea
1/2 cup sugar
Preparation:
Mix well.
Pour into small glasses.
Serve hot or chill and serve over ice.
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2. DIY, Yuban Strong Brewed Coffee
Ingredients:
1 ½ tsp Yuban brewed coffee
6 0z water
1 tsp sugar
Preparation:
Mix well.
Good to 10 servings
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D. PRODUCTION PROCESS FLOW
Raw Materials
Ingredients vary depending on whether they are yeast or chemically leavened. Furthermore,
homemade doughnuts generally include far few ingredients than mass- produced or those made from
mixes. Chemically-raised doughnuts are made with ingredients such as flour, baking powder, salt,
liquid, and varying amounts of eggs, milk, sugar, shortening and other flavorings. This type of
doughnut uses baking powder in the batter to leaven the dough. Yeast-leavened doughnuts are made
with ingredients that include flour, shortening, milk, sugar, salt, water, yeast, eggs or egg whites, and
flavorings.
Doughnuts produced in sanitary baking conditions in grocery stores, bakeries, or franchises
often come from pre-packaged mixes. These vary but can include: flour (wheat and soy flour),
shortening, sugar, egg yolks, milk solids, yeast dough conditioners, gum, and artificial flavors. One
franchise adds a yeast brew. Mixes require the bakeries to add fresh wet ingredients such as water,
milk, and eggs in the mixing process. Doughnuts also require oil (usually vegetable oil) for frying.
Glazes or frostings are often added after the product is fried and are made with flour, sugar, flavoring,
and sometimes shortening.
The Manufacturing Process
This process will describe the manufacture of doughnuts in a mechanized doughnut bakery
that makes only yeast-raised doughnuts. Because yeast requires time for kneading, time to rest and
additional time to rise or proof, it takes at least an hour to take dry pre-packaged mix to completed
product.
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Acquiring the ingredients
 Bakeries or franchises that do a brisk business (making hundreds of dozens in a day) acquire
mixes in bags, often as large as 50 lb (22.7 kg). Chains have the ingredients shipped to them
from company warehouses within the region and the mixes are stored on the premises and
used as needed. The bakery must shop for large quantities of perishable fresh ingredients such
as eggs and milk and keep them refrigerated.
Measuring the ingredients
 A batch is referred to by weight of dry ingredients put into the mixture. The weight of the
batch varies with doughnut type and amount to be made. The pre-packaged mix is poured
from a bag onto a scale and the precise amount measured.
Mixing and kneading
 The flour mixture is then poured into a large mixing bowl put onto an industrial mixer and the
appropriate amount of wet ingredients are added depending on weight of the batch and type
of doughnut in production. The wet yeast slurry (for leavening) is mixed separately and
carefully added to the flour-water mixture at this time. The dough mixer then begins its work;
a large dough hook first mixes and then simulates the human kneading process, pulling and
stretching, as it homogenizes the ingredients and develops the dough by forming the gluten
into elongated and interlace fibers that form the basic structure of the doughnut. The mix runs
on an automatic timer and the entire mixture, including the softened yeast, is kneaded
together for approximately 13 minutes.
Resting the Yeast
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 It is essential that yeast dough "rests" or simply sits for about 10 minutes after it is
mechanically kneaded. As the yeast grows, it converts its food into carbon dioxide (this is
called fermentation) and causes the yeast dough to rise. As the dough sits, it allows the gas to
develop and the dough starts to rise, indicating the fermentation process of the yeast reacting
to sugar in the mix is beginning. If this does not happen, the dough yields flat, tough
doughnuts and the mix should be discarded. At the end of this period, a good-quality dough is
spongy and soft.
Shaping the doughnuts
 The dough is then hoisted by hand and loaded into the hopper of a machine called an
extruder—a machine that forms the individual doughnuts using a pressure-cutter
The premeasured flour mixture is mixed with the appropriate amount of wet ingredients The
wet yeast slurry (for leavening) is mixed separately and carefully added to the flour-water
mixture. Next, a large dough hook first mixes and then simulates the human kneading process,
pulling and stretching, as it homogenizes the ingredients and develops the dough by forming
the gluten into elongated and interlace fibers that form the basic structure of the doughnut.
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Once the yeast has had time to rise, the dough is loaded into a hopper that feeds the dough
through an extruder. A cover is then placed on the machine and the machine is pressurized,
forcing the dough into tubes that 'plop" out a pre-determined amount of dough into the
desired shape—rings for conventional doughnuts and circles for doughnuts that are to be filled
with jam or creme.
system. The batch of yeast dough is put into the top of the open machine. A cover is then
placed on the machine and the machine is pressurized, forcing the dough into tubes that
extrude a pre-determined amount of dough into the desired shape—rings for conventional
doughnuts and circles for doughnuts that are to be filled with jam or creme. It takes about 15
minutes for the extruder to push out about 30 dozen doughnuts.
An automated doughnut stamper can also be used in conjunction with an extruder. In this
case, the dough is extruded in a continuous, unshaped flow through a series of rollers that
flatten the dough. Once flattened to 0.5 in (1.27 cm) thickness, the sheet of dough is stamped
into doughnut shapes.
Proofing
 The extruder is attached directly to the proofing box (a warm, oven-like machine), which is a
hot-air, temperature-controlled warm box set to approximately 125° F (51.6° C). Here, the thin
doughnuts are slowly allowed to rise or proof as the yeast ferments under controlled
conditions. Proofing renders the doughnuts light and airy. (Yeast doughs must be allowed to
rise slowly and at just the right temperature. If the proofing box is too hot, the yeast bacteria
will be killed and the doughnuts will not rise. If too cold, the yeast remains inactive and cannot
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ferment thus preventing leavening. A machine attached to the extruder pushes the rings or
circles onto small shelves that move through the proof box for about 30 minutes. The shelves
are chain-driven and move down, up, and over during this 30 minute period. After 30 minutes,
they are quite puffy.
Frying
 Next, the raw doughnuts fall automatically, one row at a time, into the attached open fryer. It
is important to drop just a certain amount of raw doughnuts into the grease at a time. If too
many are placed in the fryer at one time, the oil temperature is drastically lowered, fry time is
longer, and the doughnuts absorb too much oil. The frying oil is the most expensive ingredient
in the production process, and if the doughnuts absorb too much oil, it reduces the profit
margin on the batch. As the doughnuts move through the fryer, they are flipped over by a
mechanism. After two minutes, the doughnuts have moved completely through the fryer and
are forced into the mechanism that applies glaze.
Glazing and drying
 As the doughnuts leave the fryer, they move under a shower of glaze. Here, glaze is forced
through holes from a bridge running several inches above the hot doughnuts. The glaze coats
the top, sides, and part of the bottom of the doughnuts. The doughnuts are conveyored out of
the production area to dry and cool.
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The raw doughnuts are conveyored to the proofing box, a warm, oven-like machine
that slowly allows the doughnuts to rise or proof as the yeast ferments under controlled
conditions. Proofing renders the doughnuts light and airy. After proofing, the raw doughnuts
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fall automatically, one row at a time, into the attached open fryer. It takes two minutes for a
doughnut to move through the fryer. Next, the doughnuts move under a shower of glaze. The
doughnuts are conveyed out of the production area to dry and cool.
Further finishing and sale
 Once conveyor to a finishing station, the doughnuts may be sprinkled with candies or nuts or
are given a thicker frosting. The disk-like doughnuts (those with no hole) are forced onto a
machine that injects two doughnuts at a time with the desired, pre-measured filling. The
completed doughnuts are placed on trays for movement to the counter or packed into boxes
for custom orders.
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START
Acquiring Ingredients
Measuring the
Ingredients
Mixing and Kneading
Resting the Yeast
Shaping the
Doughnuts
Proofing
Frying
Glazing and Drying
Further Finishing
SELL
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E. PROJECT SITE
Plant location is an important factor that must be considered before establishing a business.
Several factors such as the cost of rent, its appearance, availability of the raw materials and suppliers
must be considered.
The proposed location of the plant site of DIY, “Dough – it - Yourself ” will North Gate Avenue
Cyberzone, Filinvest Corp. City Muntinlupa City, Metro Manila.The rent will be P200,000.00 per
month. This is the overall place of production of the proposed product. See Table 1 for the picture.
F. Plant Size and Layout
The proponents made a layout of the plant site to be used. The size of the building rented is
1,000 square meters. An important factor to be considered here is on how to make the process flow
continuously for the workers to be able to work better. It is necessary to have the appropriate plant
layout to facilitate the smooth of manufacturing process. The proponents considered a lot of factors
to have a proper plant layout that will be suitable for the whole manufacturing process
This plant has complete facilities regarding the electricity, water and other necessary utilities
since it is a kind of apartment. There is a wide space for the manufacturing area where the workers
can move easily and conveniently. There is a storage room where the raw materials as well as the
finished products could be stored properly to prevent spoilage. There would also be a worker station,
where the workers could have their rest during their break. There is a receiving area for the
customer/retailer who will drop by. The office is large enough to accommodate the visitors who will
come. The facilities of the plant are just enough to satisfy the needs of the business. The plant location
is in Filinvest Corp. City Muntinlupa City.
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Table 1:
PROJECT SITE
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Table 2:
PROJECT LAYOUT
FRONT LEFT SIDE VIEW
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FRONT RIGHT SIDE VIEW
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G. FLOOR PLAN
KITCHEN
H. RAW MATERIALS
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Raw materials are the basic ingredients for the quality of the product. These are also
the building blocks to have an output. These are the reason why and how a product produced is based
on the quality of raw materials used during the process. The ingredients of the proposed product are
shown below. The following are the raw materials used in making the proponents’ product.
SUGAR-COATED DOUGHNUT
QUANTITY PER COST PER
Ingredients Cost COST QUANTITY UNIT
1 1/2 Cups Wheat Flour 32.00 1 k. 120.00 0.27
3/4 Teaspoon Baking Powder 18.55 100 g. 120.00 0.15
3/4 Teaspoon Baking Soda 88.00 500 g. 120.00 0.73
3/4 Cups Greek Yogurt 96.00 1 k. 120.00 0.80
1 2/2 Teaspoon Vanilla 25.00 250 ml. 120.00 0.21
1/2 Cup Sugar 40.00 1 k. 120.00 0.33
3/4 Teaspoon Cinnamon 4.0 oz
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65.00 120.00 0.54
1 Teaspoon Butter 35.00 1 stick 120.00 0.29
2 Teaspoon Vegetable Oil 95.00 1 L. 120.00 0.79
TOTAL COST 494.55 4.12
SUGAR FREE DOUGHNUT
QUANTITY PER COST PER
Ingredients Cost COST QUANTITY UNIT
2 1/2 Cups & Tablespoon Oat Flour 40 1 k. 72 0.56
1/2 Cups & 2 Teaspoon Sweet Rice
Flour 30 1 k. 72 0.42
3 Tablespoon Sunflower Oil 40 1 k. 72 0.56
1/2 Cups Granulated Sugar 44 1 k. 72 0.61
2 Eggs 4 2 pcs. 72 0.06
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1/2 & 2 Teaspoon Vanilla 35 4.0 0z. 72 0.49
4 Tablespoon & 1/2 Cup Milk 29.6 370 ml. 72 0.41
1/4 Cup & 1 Tablespoon Unsweetend
Cocoa powder 259.5 100 g. 72 3.60
1/2 Powdered Sugar 21.5 1 k. 72 0.30
VEGETABLE DOUGHNUT
Ingredients Cost Unit QUANTITY COST PER UNIT
3 Tablespoon Butter 35 Stick 72 0.49
3/4 Cup of Sugar 44 1 kl. 72 0.61
3 Egg Yolks 4 3 pcs. 72 0.06
1 Egg White 4 1 pc. 72 0.06
1/2 Teaspoon Salt 15 500 g. 72 0.21
1 Cup Mashed Potatoes 60 1 kl. 72 0.83
1/2 Cup Milk 29.6 370 ml. 72 0.41
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2 1/2 Flour 40 1 kl. 72 0.56
3 Teaspoon Baking Powder 18.55 100 g. 72 0.26
1 Teaspoon Mace 50 250 g. 72 0.69
1 Teaspoon Nutmeg 40 250 g. 72 0.56
Vegetable Oil 95 1 L. 72 1.32
FRUITY DOUGHNUT
Ingredients Cost Unit QUANTITY COST PER UNIT
1 Cup Mushed Ripe Banana 50 1 Kl (12pcs.) 96 0.52
1/2 Sugar 44 1 kl. 96 0.46
1/2 Cup Fat free Greek Yogurt 96 1 kl. 96 1.00
1/4 Unsalted Butter 35 Stick 96 0.36
2 eggs 4 2 pcs. 96 0.04
1 Teaspoon Vanilla 35 4.0 oz. 96 0.36
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2 Cups All Purpose Flour 40 1 kl. 96 0.42
1 Teaspoon Baking Powder 18.55 100 g. 96 0.19
1/2 Teaspoon Baking Soda 88 500 g. 96 0.92
1/4 Salt 15 500.g. 96 0.16
1/4 Cup 100 500 g. 96 1.04
Beverages
DIY, Milk Tea
Ingredients Cost Unit UNITS COST PER UNIT
4 1/2 Powdered Milk 250 454 g. 25 10.00
1 1/2 Coffee creamer 175 250 g. 25 7.00
2 cups sugar 40 1 kg. 25 1.60
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1 1/2 Tablespoon cinnamon 65 100 g. 25 2.60
TOTAL 530.00 21.20
DIY, Coffee Tea
COST PER
Ingredients Cost Unit UNIT UNIT
1 cup Bolivion dip coffee dips 418.05 ikg 10 41.81
jasmine tea 40 1 tea bag 10 4.00
1/2 cup sugar 40 1 kg. 10 4.00
TOTAL 498.05 49.81
DIY, Yuban Strong Brewed Coffee
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COST PER
Ingredients Cost Unit UNIT UNIT
1 1/2 teaspoon Yuban coffee 494.55 453 g. 10 49.46
1 teaspoon sugar 40 1 kg. 10 4.00
TOTAL 534.55 53.46
J. PRODUCTION MACHINERIES
The proponents will use the following factory machinery and equipment in the
manufacturing process. In order to have faster and easier production, a manufacturing firm must
invest in tools and equipment. This includes the tangible assets which are held by the firm for use in
production process. All the tools are locally available. The proponents conducted a price quotation to
determine the cost of the tools and equipment. The list of equipment of the firm for production is
shown in the figure below.
DOUGHNUT ROBOT: MARK VI STANDARD SYSTEM
BelshawAdamatic’s Donut Robot® Mark VI Production System is a uniquealternative to
traditional donut frying. Compared with open kettle frying, the Mark VI system makes donut
production faster and easier, with reduced labor cost. Less training is required to work the system
efficiently, and more consistent quality is attainable. The automatic fryer can reduce shortening
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consumption by up to 50% compared to standard fryers. It provides identical frying conditions for
each donut without an operator standing over the fryer and inserting, turningand lifting donuts out
manually. Instead, it allows the operator to perform other functions.
The Mark VI system produces a full variety of cake donuts, making use of aBelshaw Type F
depositor. Equally, the Mark VI produces yeast-raised donuts using its Feed Table, Trays and Cloths to
insert the donuts into the fryer. These can include Rings, Berliners, Bars, and Twists. There is no
sacrifice in product quality ~ both cake and yeast-raised donuts can equal or surpass the best donuts
made by standard kettle fryers.
Fryer: Donut Robot® Mark VI
Automatic fryer holding 4 donuts per row with conveyor flight bars spaced 3.75 inches (95mm)
apart, and a capacity of:
-- 96 dozen per hour at 110 seconds frying time (yeast-raised donuts)

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-- 112 dozen per hour at 95 seconds frying time (cake donuts)
Melter-Filter: EZMelt 34 +Fill Hose (EZ6-0510)
The most efficient way to reduce shortening cost. Shortening drains from the fryerdirectly
through the long-life filter, and pumps back up with a foot pedal. Solidshortening (if used) can be
melted in the filter. The internal heating element keeps shortening liquid at approximately
250°F(120°C).
Item# SM100-0510 is the Fill Hose used to pump shortening directly from the
EZMelt34 to the Mark VI fryer
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Feed Table: Feed Table +Extension, Trays and Cloths
How the system works:
Roll and cut dough using a single cutter, roller-style cutter, or automated sheeter.
Place one Proofing Cloth with 24 donuts on top of one Proofing Tray.
Place the Proofing Tray (with Cloth and 24 donuts) into a Cabinet Proofer (or a Baking Rack, if a
Roll-in Proofer used). Insert more trays until proofer is full.
Allow approximately 30-40 minutes proofing time for the donuts to rise.
Carry each Proofing Tray to the Feed Table and place the Proofing Cloth onto the Feed Table.
Pull away the Proofing Tray.
The Feed Table drops the rows of donuts automatically into the Mark VI fryer.
The Feed Table extension (FT6-0007SH) increases productivity. It allows theoperator to load
more donuts onto the Feed Table and reduces the chance of empty gaps in the fryer.
Support Tables: for Fryer and Feed Table (right)
Specially designed tables for the Mark VI fryer and Feed
Table.
Both tables also provide storage space for Shortening, Glaze, Screens,Proofing Trays/Cloths, and
assorted items
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Rack Loader: RL-18 (Item# 86100)
A big labor saver in a small package. The Rack Loader allows donuts to slide down and fill up a
Glazing Screen with 24 donuts. The Glazing Screen can then be used for glazing, icing, or
storing in a rack. Glazing Screens (Item #SL200-0004) A minimum of 24 screens are
recommended. The number needed depends on expected levels of production.
Cake Donut Depositor:
Type F +Mounting System +Plunger/Cylinders. Belshaw Adamatic's Type F is an electrically
powered, manually operateddepositor which can produce a full range of cake donuts. The Type F can
deposit 4 (and usually 5) cake donuts per conveyor row. The Mounting System (Item #0405) attaches
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to the Fryer Support Table One or more plunger/cylinder combinations may be selected (one
cylinderis sufficient, if all plungers chosen are the same diameter)
See Type F spec sheet or BelshawAdamatic's plunger selection guide forplunger information.
Proofer: EP18/24 Cabinet Proofer
Either a Cabinet Proofer or a Roll-in Rack Proofer can be used with the Mark VI standar system.
If using the EP18/24, the operator can load and unload each Proofing Traysfull of donuts one-
at-a-time, allowing more precision in achieving the best proofing time for yeast-raised donuts
If a Roll-in Rack Proofer is available, a Cabinet Proofer will not be required.
Capacity of the BelshawAdamatic EP18/24 is approximately 51 dozendonuts per hour (at a
proofing time of 35-40 minutes). At full capacity, twoEP18/24's will be needed.
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Glazer: HG18EZ + Drain Tray
The best way to apply glaze to donuts made by the Mark VI.Glazes 2 dozenat one time, on a
glazing screen.
BelshawAdamatic'sEasyLift system means the glaze applicator is supportedon rails, rather than
being hand held, considerably reducing possible strain on the operator.
Item# HG18EZ-1002 is the Drain Tray for the glazer. The drain tray providesa convenient place
for extra glaze to drain off donuts before placing on arack, while the operator glazes the next
screen of donuts.
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Icer: H&I-2 or H&I-4
2-bowl or 4-bowl icers for donuts and other products.
H&I-2 and H&I-4 are two-bowl and four-bowl warming tables, water-heatedwith 13”(33 cm)
stainless steel icing bowls. They can be easily rolled intoand out of whatever location they are
needed. The use of moist heat enables icing to stay in condition for longer periods.
COFFEE MAKER
Brewed Coffee Maker - KrupsCaffeDuomo 985-42 8 Cups Coffee & Espresso Combo
The KrupsCaffeDuomo 985-42 is a dual-purpose coffee maker which brews delicious coffee as well as
espresso. Featuring deep brew technology, this Krups 8-cups coffee maker heats the water to an ideal
temperature at a specific gap timed to give outstandingly rich coffee.
The 'Stop n Serve' function in this Krups espresso maker permits you to remove the carafe
during the brewing cycle anytime. Equipped with the steam-pressurized system and pressure safety
valve, the KrupsCaffeDuomo 985-42 coffee maker ensures total safety during the brewing process.
This Krups 8-cups coffee maker has a Swing-out filter holder provides handling convenience. With a
non-stick warming plate, this Krups espresso maker keeps your coffee hot for a long period.
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K. SUPPLIES
Office supplies are very important in selling process such as marketing and sales, order
processing, delivery, billing and collections and for further inquiries. If the business will not have these
things, the business papers and the whole operations will be disorganized. The firm will be using the
following supplies for its operation.
Maintenance supplies composed of the things that can be used to maintain the cleanliness of
the working area. They are to be expected in every business activity. These materials are commonly
needed for cleaning the area and far from danger. The firm will use the following maintenance
supplies.
OFFICE SUPPLIES AND MAINTENANCE
DESCRIPTION QUANTITY UNIT COST TOTAL COST
Short Folder & Envelopes 24 4.00 96.00
Short Bond paper 500 0.35 175.00
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Long Bond paper 500 0.45 225.00
Pencil 5 5.00 25.00
Ballpen 24 5.00 120.00
Boxes of Paper Clip 10 8.25 82.50
Stapler 4 179.75 719.00
Staple Wire 10 25.25 252.50
Marker 1 46.75 46.75
Staple remover 2 65.00 130.00
Log Book 2 110.00 220.00
Fastener 2 65.00 130.00
Stamp Pad 2 40.00 80.00
Fire Extinguisher 2 1,500.00 3,000.00
Liquid Eraser 3 35.00 105.00
Scotch tape 2 25.00 50.00
Carbon paper 2 35.00 70.00
Cellphone 2 1,500.00 3,000.00
Computer Ink 1 1,500.00 1,500.00
Vacuum Cleaner 3 85.00 255.00
Sponges 12 15.00 180.00
Dust Wiper 2 65.00 130.00
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Rugs 10 15.00 150.00
Paper Towel 12 88.00 1,056.00
Table Napkin 12 66.00 792.00
Trash can 3 150.00 450.00
Hand Soap 2 250.00 500.00
Glass Cleaner 2 150.00 300.00
Floor Cleaner 2 347.00 694.00
Mop 2 175.00 350.00
TOTAL 1160 6,555.80 14,883.75
Manufacturing Tools and Equipment and Kitchen Tools
MANUFACTURING TOOLS AND EQUIPMENT

DESCRIPTION UNIT COST TOTAL COST
Belshaw Adamatic’s Donut
Robot 1 235,890.00 235,890.00
Coffee Maker 2 15,000.00 30,000.00
Doughnut Dispenser 1 25,000.00 25,000.00

Glass Container for Beverage -
Milk Tea 12 250.00 3,000.00
Air conditioner 3 30,000.00 90,000.00
Refrigerator 1 53,000.00 53,000.00
Freezer 1 20,000.00 20,000.00
Electric Oven 1 20,000.00 20,000.00
Electric Mixer 1 12,000.00 12,000.00
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Water Dispenser 1 2,100.00 2,100.00
Microwave 1 5,000.00 5,000.00
Computer Set 2 12,000.00 24,000.00
OfficeComputer 1 15,000.00 15,000.00
Steel Dough Rack 1 38,000.00 38,000.00
Total 29 483,240.00 572,990.00

Kitchen Tools
Description Quantity Cost Total Cost
Baking Pan 5 485.00 2,425.00
Large Mixing Bowl 4 999.00 3,996.00
Measuring Cups 2 350.00 700.00
Cutter 6 135.00 810.00
Spatula 4 120.00 480.00
Piping Tools 6 50.00 300.00
Measuring Spoon 5 15.00 75.00
Mixing Spoon 3 15.00 45.00
Cup and Saucer Set x 6 4 100.00 400.00
Spoon x 12 2 150.00 300.00
Fork x 12 2 150.00 300.00
Large Tray for 36 285.00 10,260.00
Glass 20 10.00 200.00
Pastry Brush 12 85.00 1,020.00

Customized Coffee Plastic Cups 1000 2.00 2,000.00
TOTAL 168 2,951.00 23,311.00
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Office Furniture and Fixtures
Furniture and fixtures helps the administrative office in transacting with customers
comfortably. It is intended for the guests to accommodate their inquiries. The firm will use the
following furniture’s and fixtures for its administrative purposes.
FURNITURE & FIXTURE
DESCRIPTION QUANTITY UNIT COST TOTAL COST
Chandelier 3 2,200.00 6,600.00
Fluorescent Bulb 4 450.00 1,800.00
Incandescent Lamp 4 250.00 1,000.00
CCTV 1 35,000.00 35,000.00
Office Table 2 2,500.00 5,000.00
Office Chairs - Managers 2 1,200.00 2,400.00
Office Chairs - Visitors 4 750.00 3,000.00
8 Sets of Table and chairs (1 Table & 4
chairs 8 8,500.00 44,000.00
TOTAL 28 50,850.00 98,800.00
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MARKETING/ADVERTISING EXPENSE
Marketing/Advertising expense is needed in order to promote the products that the company
offers.
MARKETING/ADVERTISING EXPENSE
DESCRIPTION QUANTITY COST TOTAL COST
Flyers 1500 8.90 13,350.00
Tarpaulin 1 12,000.00 12,000.00
TOTAL 25,350.00
Aside from the direct materials needed in the production, there are other materials needed
which are not really a part of the manufacturing process. The indirect materials for the proposed
product DIY, Doughnuts includes the ff. in the table below:
L. FINISHED PRODUCTS
Table below shows the expected production of doughnuts and beverages to be produced
by DIY, Doughnuts within a year.
DIY, DOUGHNUTS
Doughnuts Output Unit Unit Cost
Sweet Coated 129,480.00 4.12
Sugar Free 118,008.00 6.99
Fruity 49,728.00 5.47
Vegie 83,592.00 6.04
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Regular Dough 178,992.00 2.56
DIY, BEVERAGES
Beverages Output Unit Unit Cost
Milk Tea 23,500.00 21.20
DIY Coffee Tea 183,700.00 49.81
DIY, Yuban Strong Brewed Coffee 183,700.00 53.46
M. UTILITIES
A business venture could not operate without acquiring the basic utilities needed in the
production. Utilities include communication and internet that are already installed in the
workplace and ready to use.
TELECOMMUNICATION
DESCRIPTION MONTHLY Annual
Internet 1,999.00 23,988.00
PLDT 2,500.00 30,000.00
TOTAL 4,499.00 53,988.00
N. WASTE & WASTE DISPOSAL MANAGEMENT
Waste Reduction & Recycling
a. Purchasing
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1. Inform the suppliers of the products that contain recycled content, have reduced
packaging, and are packaged in recyclable materials.
2. To minimize the amount of bottles and cans used, serve carbonated beverages from a
beverage dispenser.
3. Use health department approved refillable condiment bottles instead of individual
packets.
4. Cleaning supplies can be purchased as concentrates rather than ready-to-use.
5. Use toilet tissue made from recycled paper in your restrooms.
6. Menus are printed on recycled paper.
b. Reuse
1. Store food in reusable containers.
2. Use hot air dryers in restrooms.
3. Food Prep and Storage
4. Rotate perishable stock at every delivery to minimize waste due to spoilage.
5. Use daily production charts to minimize over-prepping and unnecessary waste.
6. Check your produce deliveries carefully for rotten or damaged product; and return any
substandard product.
c. Recycle
1. Glass bottles and jars
2. Newspapers
3. Magazines
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Chapter IV
MANAGEMENT STUDY
In this chapter, it shows the organizational set up that helps in operating the business. For the
business to become successful, the management should have a good act of handling and controlling
something. It defines the total amount of contribution and the capitalization, the responsibilities and
duties of every employee within the organization, compensation of each personnel and the legal
requirements of the business.
To determine the manpower requirements in the operation and set policies that will
effectively utilize the human resource, the proponents intends:
1. To specify the ownership the proposed business will undertake;
2. To determine the number of manpower needed and specialization requirement of the
production;
3. To discuss the initial capitalization and the amount of contribution of each stockholders;
4. To create a well and firm organizational structure; and
5. To define the relationship existing among different position and organizational structure to be
used.
Form of Business Ownership
The shareholders agreed to establish a form of business organization which will be easy
to operate. The proposed business organization will adopt the corporation type of business
organization.
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Capitalization
Capitalization is the total amount of funds contributed by the owners of the business. A
sufficient amount of capital is necessary to support the operating expenses of the firm. The
stockholders issued amount of P625,000.00 of which is as their starting capital based on the
P2,500,000.00 share capital. The amount is determined after taking into consideration the total
projected cost and its working capital needed for the first two months.
Organizational Structure
An organizational structure determines how the roles, power and responsibilities are assigned,
controlled, and coordinated, and how information flows between the different levels of management.
It refers to the relatively stable and formal network and horizontal interconnections among jobs that
constitutes the organization.
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CEO/President
Vice President
Store
Finance
Operations
Manager
Manager
Bakers Cashiers
Helpers Delivery Riders
Security Guard
Manpower Requirements:
The DIY Doughnuts will employ the following people:
Position No. of Employees
Finance Manager 1
Store Operations Manager 3
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Bakers 6
Cashiers 3
Helpers 6
Delivery Riders 3
Security Guards 2
Total 24
HUMAN RESOURCE
Job Designation and Job Specification
Personnel Responsibilities and Qualifications
FINANCE MANAGER
Responsibilities:
 Develop systems and procedures to ensure the efficient and effective management of
company's finances and compliance with statutory requirements
 Produce accurate and timely financial information about the company's financial status and
performance to enable decisions to be taken relating to the company's financial strength and
security
 Produce all necessary statements and reports to enable the accurate measurement of cash
flow, profit and loss, stock and debtors
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 Develop and monitor all necessary controls to ensure that the company complies with
statutory requirements
 Act as the main point of contact with external auditors and provide them with required
information
 Carry out any necessary internal audit reviews and monitor the financial effectiveness of
systems and controls
 Recommend any changes necessary to improve the company's financial performance and
financial controls
 Keep up to date with any developments in financial management which might affect how the
company's finances are managed or its statutory obligations
 Act as the company's main source of expertise on financial control issues
Requirements
 Candidate must possess at least a Bachelor's/College Degree in Finance or Accountancy
 Professional License (Passed Board/Bar/Professional License Exam) is an adventage
 At least 5 years experience in related field.
STORE OPERATIONS MANAGER
Responsibilities:
 Manage their store's operations and are responsible for financial results. They develop, coach
and train in-store partners as they work side by side. And they're responsible for the quality of
customer service and beverages in their stores.
 Sets plan for shops to achieve sales goal.
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 Creates, implements and evaluates Store Marketing and other promotions to increase shop
sales and build brand awareness
 Facilitates timely and proper cash management of shops and checks proper use of revolving
fund
 Ensure timeliness and completeness of delivery services rendered by the store
 Regular business reviews on shop performance (sales, profitability and cost efficiency vs.
targets) to identify opportunities or formulate action plans to address gaps.
Requirements:
 Candidate must possess at least a Bachelor's/College Degree in Business Studies/Management
or related
 Candidate must possess with at least 3 years experience in related field (QSR, restaurant,
retail)
 Candidate must possess good leadership skills & has positive, professional working attitude
 Candidate must be willing to work on a flexible schedule
BAKER
Responsibilities:
 Produce donuts based on production premix.
 Monitor supply or raw materials needed in producing bakery products.
 Inventory control of raw materials.
 Upkeep and maintain workplace, equipment, and utensils.
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 Perform other related functions required on the job as assigned by immediate superior from
time to time.
Requirements:
 Candidate must possess at least a Bachelor's/College Degree in Hospitality/Tourism/Hotel
Management or equivalent.
 At least 3 year(s) of working experience in the related field is required for this position.
 Must be equipped with knowledge on basic food safety, food preparation, and sanitation.
HELPER
Responsibilities:
 Kitchen helpers, food service helpers and dishwashers clear tables, clean kitchen areas, wash
dishes, and perform various other activities.
 Taking orders and serving food and beverages to customers.
 Assisting dining guests.
Requirements:
 Candidate must possess at least a High School Diploma, Vocational Diploma / Short Course
Certificate, Hotel and Restaurant Services or equivalent.
 At least 1 year(s) of working experience in the related field is required for this position.
CASHIER
Responsibilities:
 Greet customers entering establishments.
 Maintain clean and orderly checkout areas.
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 Count money in cash drawers at the beginning of shifts to ensure that amounts are correct and
that there is adequate change.
Requirements:
 Candidate must be at least a High School Graduate
 Knows how to operate the POS machine, with background in handling credit card transaction.
DELIVERY RIDER
Responsibilities:
 Driving from the store to the destination delivering products/goods and collecting the
payment.
 It is their duties to accept deliveries.
 They might have to work as sales man too and get further orders and business from the
customer to whome he delivers the order.
 It is his duty to ensure the cleanliness and the maintenance of the delivery vehicle and must
ensure the safe delivery of the product without delay or damage.
 It is his duty to settle accounts with the costumers and maintain good relationships with them.
Requirements:
 Candidate must possess at least a High School Diploma, Vocational Diploma / Short Course
Certificate, Hotel and Restaurant Services, Logistic/Transportation or equivalent.
 Atleast 1 year of working experience in the related field.
 Know how to drive a motorcycle; with Professional Licence.
SECURITY GUARD
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Responsibilities:
 Monitor entrance and departure of customers, employees, and other persons to guard against
theft and maintain security of premises.
 Greet customers entering the premises.
 Warn persons of rule infractions or violations, and apprehend or evict violators from the store
premises, use force when necessary.
 Monitors the shop occupancy to ensure it doesn’t exceed maximum capacity.
Requirements:
 Candidate must be at least a High School Graduate
E. Wages, Salary Schedule
Salary
Annual Salary
Position No. of Employees Monthly Salary (PhP)
(PhP)
Finance Manager 1 18,000.00 216,000.00
Store Operations
3 18,000.00 648,000.00
Manager
Bakers 6 16,000.00 1,152,000.00
Cashiers 3 13,980.00 503,280.00
Helpers 6 13,980.00 1,006,560.00
Delivery Riders 3 13,980.00 503,280.00
Security Guards 2 13,980.00 335,520.00
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Total 24 107,920.00 4,364,640.00
Company Benefits
Social Security System (SSS)
All employees hired by the private companies are required to become an SSS member (R.A.
No. 8282). The social security system (SSS) was formed in order to provide private employees together
with their families protection against old age, sickness, disability and death. All employed people
under 60 years and who earn more than P1, 000 every month are supposed to contribute a certain
percentage to the SSS. These contributions are deducted from the employee’s salaries. On a monthly
basis the employer withholds the figures from the salaries.
Philippine Health Insurance (PhilHealth)
The Philippine Health Insurance Corporation is the medical insurance company of the
Philippines. All employees are required to enroll in the National Health Insurance Program. Monthly
contributions are based on actual employee monthly salaries and the amount of employee
contribution is matched equally by the employer.
Total
Salary Employee Employer
Salary Range Salary Base Monthly
Bracket Share Share
Premium
1 8,999.99 and below 8,000.00 200.00 100.00 100.00
2 9,000.00 - 9,999.99 9,000.00 225.00 112.50 112.50
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3 10,000.00 - 10,999.99 10,000.00 250.00 125.00 125.00
4 11,000.00 - 11,999.99 11,000.00 275.00 137.50 137.50
5 12,000.00 - 12,999.99 12,000.00 300.00 150.00 150.00
6 13,000.00 - 13,999.99 13,000.00 325.00 162.50 162.50
7 14,000.00 - 14,999.99 14,000.00 350.00 175.00 175.00
8 15,000.00 - 15,999.99 15,000.00 375.00 187.50 187.50
9 16,000.00 - 16,999.99 16,000.00 400.00 200.00 200.00
10 17,000.00 - 17,999.99 17,000.00 425.00 212.50 212.50
11 18,000.00 - 18,999.99 18,000.00 450.00 225.00 225.00
12 19,000.00 - 19,999.99 19,000.00 475.00 237.50 237.50
13 20,000.00 - 20,999.99 20,000.00 500.00 250.00 250.00
14 21,000.00 - 21,999.99 21,000.00 525.00 262.50 262.50
15 22,000.00 - 22,999.99 22,000.00 550.00 275.00 275.00
16 23,000.00 - 23,999.99 23,000.00 575.00 287.50 287.50
17 24,000.00 - 24,999.99 24,000.00 600.00 300.00 300.00
18 25,000.00 - 25,999.99 25,000.00 625.00 312.50 312.50
19 26,000.00 - 26,999.99 26,000.00 650.00 325.00 325.00
20 27,000.00 - 27,999.99 27,000.00 675.00 337.50 337.50
21 28,000.00 - 28,999.99 28,000.00 700.00 350.00 350.00
22 29,000.00 - 29,999.99 29,000.00 725.00 362.50 362.50
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23 30,000.00 - 30,999.99 30,000.00 750.00 375.00 375.00
24 31,000.00 - 31,999.99 31,000.00 775.00 387.50 387.50
25 32,000.00 - 32,999.99 32,000.00 800.00 400.00 400.00
26 33,000.00 - 33,999.99 33,000.00 825.00 412.50 412.50
27 34,000.00 - 34,999.99 34,000.00 850.00 425.00 425.00
28 35,000.00 and up 35,000.00 875.00 437.50 437.50
*Employee share represents half of the total monthly premium while the other half is
shouldered by the employer.
Home Development Mutual Fund (PAG-IBIG)
Employers are required to contribute, on behalf of their employees to the Home Development
Mutual Fund (R.A. No. 7835). This gives the employees an opportunity to own a house in easy-
payment plans that can be directly deducted from their monthly wages.
13th Month Pay
Based on Pres. Decree No. 851, all Filipino employees are entitled to a year-end bonus
equivalent to one month salary regardless of the nature of their employment. The 13 th month pay is
to be given no later than December 24 of every year.
Overtime Pay and Holiday
 If the employee worked in excess of eight hours (overtime work), he shall be paid an additional 30
percent of his hourly rate on said day. Computation: Hourly rate of the basic daily wage x 200
percent x 130 percent x number of hours worked.
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 If the employee worked during a regular holiday that also falls on his rest day, he shall be paid an
additional 30 percent of his daily rate of 200 percent. Computation: (Daily rate + COLA) x 200
percent] + (30 percent [Daily rate x 200 percent)].
 If the employee worked in excess of eight hours (overtime work) during a regular holiday that also
falls on his rest day, he shall be paid an additional 30 percent of his hourly rate on said day.
Computation: (Hourly rate of the basic daily wage x 200 percent x 130 percent x 130 percent x
number of hours worked)
Other company benefits
Christmas Bonus
This is given on December, on top of the 13th month pay. This will be considered as the
company’s Christmas gift to its employees.
Company outing and other activities
Manning Schedule
Personnel
Employees Schedule MON TUE WED THU FRI SAT SUN
AM 8am- 8am- 8am- 8am- 8am- Day- 8am-
Finance Manager
1.00 Shift 5pm 5pm 5pm 5pm 5pm Off 5pm
Store Operations AM 8am- Day- 8am- 8am- 8am- Day- 8am-
Manager 1.00 Shift 5pm Off 5pm 5pm 5pm Off 5pm
Store Operations 5pm- 5pm- Day- 5pm- 5pm- 5pm- 5pm-
PM Shift
Manager 1.00 1am 1am Off 1am 1am 1am 1am
Store Operations Mid- Day- 1am- 1am- 1am- 1am- 1am- 1am-
Manager 1.00 Shift Off 8am 8am 8am 8am 8am 8am
AM Day- 8am- 8am- Day- 8am- 8am- 8am-
Baker
2.00 Shift Off 5pm 5pm Off 5pm 5pm 5pm
5pm- 5pm- Day- 5pm- Day- 5pm- 5pm-
Baker PM Shift
2.00 1am 1am Off 1am Off 1am 1am
Mid- 1am- Day- 1am- 1am- 1am- 1am- Day-
Baker
2.00 Shift 8am Off 8am 8am 8am 8am Off
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AM 8am- 8am- 8am- Day- Day- 8am- 8am-

Helper
2.00 Shift 5pm 5pm 5pm Off Off 5pm 5pm
Day- Day- 5pm- 5pm- 5pm- 5pm- 5pm-
Helper PM Shift
2.00 Off Off 1am 1am 1am 1am 1am
Mid- 1am- 1am- Day- Day- 1am- 1am- 1am-
Helper
2.00 Shift 8am 8am Off Off 8am 8am 8am
AM 8am- 8am- 8am- 8am- 8am- Day- 8am-
Cashier
1.00 Shift 5pm 5pm 5pm 5pm 5pm Off 5pm
Day- 5pm- 5pm- 5pm- 5pm- 5pm- 5pm-
Cashier PM Shift
1.00 Off 1am 1am 1am 1am 1am 1am
Mid- 1am- 1am- 1am- 1am- 1am- 1am- Day-
Cashier
1.00 Shift 8am 8am 8am 8am 8am 8am Off
AM 8am- 8am- 8am- Day- 8am- 8am- 8am-
Security Guard
1.00 Shift 8pm 5pm 5pm Off 5pm 5pm 5pm
Day- 5pm- 5pm- 5pm- 5pm- 5pm- 5pm-
Security Guard PM Shift
1.00 Off 1am 1am 1am 1am 1am 1am
AM 8am- Day- 8am- 8am- 8am- 8am- 8am-
Delivery Rider
1.00 Shift 5pm Off 5pm 5pm 5pm 5pm 5pm
5pm- 5pm- 5pm- 5pm- 5pm- Day- 5pm-
Delivery Rider PM Shift
1.00 1am 1am 1am 1am 1am Off 1am
H. Company Rules and Regulations
The objective of this is to establish a standard set of rules and regulations for the entire company
whereby all employees will adhere to and to adopt such rules and regulations as a standard code of
conduct for all employees.
MINOR FORMS OF MISCONDUCT
An employee, who is guilty of one of the following, or similar forms of misconduct, may be
given a verbal warning at the first occurrence thereof. The issuing of a severe or written warning may
be alternative forms of disciplinary action for misconducts depending on the evidence, circumstances
and seriousness of each situation. An employee may even be dismissed for repeated minor forms of
misconduct. Each transgression will be dealt with on own merit in all instances.
The following are examples of such misconduct:
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- Absence from the workstation without permission
- Lending money to fellow employees for gain during working hours
- Minor violations relating to the driving and/or cleaning and/or use of the employer's vehicles
- Photocopying documents without permission
- Late coming or overstaying in restrooms at tea or lunch breaks
- Use of telephones without permission
- Throwing refuse and/or any other objects on the floor or out of the windows
- Eating in prohibited areas
- Not wearing prescribed clothing/ uniform
- Smoking in prohibited areas and/or at prohibited times
- Failing or neglecting to advise your employer of your absence
- Leaving the department or plant during working hours without permission and/or without an
authorized exit permit
- Stopping work or making preparations to leave work (e.g. such as washing up or changing clothes)
before the specified quitting time. (Note: time lost will be unpaid in addition to any disciplinary action
which may be taken)
- Wasting time or loitering in toilets or on company premises during working hours
- Failure by drivers to adhere to delivery time sheets without reasonable explanation
- Unauthorized meetings
- Placing of notices on notice boards without permission from Management
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- Removing notices, signs or writing in any form from bulletin boards or any other surface on company
property at any time without specified authorization from Management
- Creating or contributing to unsanitary conditions on your employer's premises
- Unauthorized soliciting or collecting contributions for any purpose whatsoever on company premises
- Disruptive behavior
- Horseplay, scuffling, running or throwing objects at any time on company premises
- Causing unnecessary distractions to fellow employees
- Making of unnecessary scrap
- Gambling, conducting a lottery or any other game of chance on company premises or whilst on duty
at any time
- Unauthorized operation or interference with company machines, tools or equipment at any time
MISCONDUCT OF A MORE SERIOUS NATURE
At the occurrence of any of the following forms of misconduct, or others of a similar nature, an
employee may receive a warning (written or severe), or face dismissal or summary dismissal at the
option of Management, depending on the evidence, circumstances and seriousness of each situation.
- Addressing abusive and/or obscene language at a fellow employee or Management representative,
or a client, or in a client's presence
- Sleeping on the job
- Negligence or gross negligence in the performance of your duties or functions
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- Failure to report an accident or damage to machinery, vehicles or other property belonging to the
Employer
Possession of intoxicating liquor and/ or habit forming drugs on the Employer's premises
- Intimidation
- Fraud
- Using another person's identity card or permitting another person to use your identity card to enter
company premises
- Failure to report your own communicable disease to the Company doctor or your immediate
superior
- Bribery
- Dishonesty
- Unauthorized removal of Company and/ or fellow employee’s property
- Theft of company property and/or a fellow employee's property
- Unauthorized possession of company property and/or a fellow employee's property
- Misappropriation of company property and/or a fellow employee's property
- Falsification of the Employer's records
- Assault
- Threatening behavior
- Wilful damage to property in the Employer's charge
- Gross insubordination or blatant disrespect to management or clients
- Negligent or reckless driving of vehicles in the Employer's charge
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- Driving of any motor vehicle at an unsafe speed on company or client's premises
- Traffic violations by drivers
- Driving, alighting upon or tampering with a company motor vehicle without proper authorization
- Intentional interfering with or obstructing other employees in the performance of their duties
- Unauthorized interference or tampering with or damaging safety equipment
- Refusal or failure to obey a lawful instruction
- Disregarding or breaching the employer's safety rules and regulations or standard/common safety
practices
- Failure to report an injury on duty
- Consumption of liquor or alcoholic beverage or habit forming drugs on company premises at any
time and/or whilst on duty
- Reporting for duty under the influence of alcohol or habit forming drugs and/or suffering from
alcoholic hangover
- Absence from work without permission or without reasonable cause
- Any conduct prejudicing the integrity of the product and manufacturing rules and regulations
- Fighting
- Desertion
- Loss or destruction of the Employer's property through malice, carelessness or negligence
- Any action or omission, which may lead to stock not being accepted by the customer through the
employee's carelessness or negligence
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- Disposing of or concealing defective work or workmanship, either directly or indirectly, and/or any
other deception in regard to defective work or workmanship
- Clocking irregularities, which shall include, inter alia, failure to clock own card, unauthorized altering
of figures recorded on clock card or time card, clocking another employee's clock card and destruction
or loss of clock card or time card
- Any other misconduct constituting breach of contract under the common law or any other legal
provisions
- Refusing to submit to a search of person, clothing, locker or vehicle when required or requested to
do so by one of the Company authorized officials
- The making or publishing of false, vicious or malicious statements concerning any employee, the
Company or its products
- Misuse or removal from the Company premises without proper authorization, of employee lists, blue
prints, company records or the conveying of any confidential company information to third parties,
which shall include information in respect of wages and other substantive conditions of employment
- Deliberately making false reports or making false entries on any official company documents or
records, e.g. log sheets
- Immoral conduct or indecency on company premises and/or whilst on duty and/or whilst
representing the Company
- Making false statements when applying for employment with the Company and/or when undergoing
a medical examination
- Conduct detrimental to the image, performance or profitability of the Employer
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- Divulging information, without proper authorization, concerning the Company's business
- Direct or indirect discrimination on grounds including, but not limited to, race, gender, sex,
pregnancy, marital status, family responsibility, ethnic or social origin, color, sexual orientation, age,
disability, religion, HIV status, conscience, belief, political opinion, culture, language, birth
- Harassment or victimization based on grounds included, but not limited to, race, gender, sex,
pregnancy, marital status, family responsibility, ethnic or social origin, color, sexual orientation, age,
disability, religion, HIV status, conscience, belief, political opinion, culture, language, birth.
- Conviction on any criminal offence and/or sentence to a prison term for a conviction and/or
sentence related to a rule or standard regulating conduct in, or of relevance to, the workplace
- Misappropriation of Company property
- Misrepresentation.
- Unauthorized use of another employee’s password of any nature whatsoever
- Unauthorized use and/or negligence in the use of and/or use for purposes not related to the
business or job function and/or abuse of Internet, e- mail and computer hardware and software
facilities.
Chapter V
FINANCIAL ASPECTS
Financial study aims to identify the financing needs of the business venture. It determines the
required capital for the business operations, studies the solvency, liquidity and profitability ratios that
are important in assessing the firm's future. Financial study is the heart of any business plan, the point
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in time where one's vision is qualified in terms of pesos and centavos, and units of time: days, weeks,
months and years (Cabrera, 2005).
This chapter consists of preparation of financial statements and those matters have significant
influence on the feasibility of the project. This will includes not only the current operations but also
the projections covering for the five (5) years of business operation.
The primary objective of financial aspects is to know the profitability of the business after
considering all the necessary expenses and the five year financial projection of the service. It aims to
achieve the following:
1. To make a realistic and complete estimated future amounts that would test the feasibility of the
study with respect to the profitability, liquidity and solvency;
2. To determine the total initial project cost, the required total capital contribution of each
shareholder, as well as the sources of funds to be used to support the short term and long term
needs;
3. To identify the break-even point, the internal rate of return of the business;
4. To determine whether the study will be able to pay its total debt with reasonable margin of safety;
5. To be able to evaluate the financial statements in terms of the analysis of liquidity or short term
solvency, asset management solvency, profitability, and stability of its financial position.
Statement of Financial Position
Statement of financial position is the new term for balance sheet. Statement of financial
position shows the financial position or condition of an entity by listing the assets, liabilities,
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and owner's equity as at specific date (Ballada, 2010). This statement reflects to the basic
accounting equation: Assets = Liabilities + Equity. The users of financial statements analyze
the statement of financial position to evaluate an entity's liquidity, its financial flexibility and its
ability to generate profits and its solvency. It is also the review of what the company owns and
what the company owes to the outsiders and to internal owners. Assets are economic
resources that are expected to provide future service to organization. Equities consists of the
organizations liabilities, which are the obligations together with the equity interest of its
owners.
Income Statement
Income statement contains the income and expense accounts. It represents the results
of operations for the accounting period. This statement summarizes the company's revenue,
expenses, gains and losses (definition of revenue and expense). Income statement is
likewise useful in predicting the capacity of the firm to generate cash flows from its existing
resource based.
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DIY, DOUGHNUTS INC.
Statement of Financial Position
5 Years Projection
Assets 2015 2016 2017 2018 2019

Current Assets
Cash 384,252.97 745,984.59 1,151,597.84 1,657,939.73 2,268,792.45
Cash In Bank 576,379.45 1,118,976.88 1,727,396.76 2,486,909.60 3,403,188.67
Direct Materials 23,280.20 22,159.80 22,603.00 23,733.15 24,919.81
Finished Goods 24,731.18 24,978.49 25,478.06 26,751.96 28,089.56
Inventory Beverages 1,339.80 1,353.20 1,380.26 1,449.27 1,521.74
Total Current Assets 1,009,983.59 1,913,452.96 2,928,455.92 4,196,783.72 5,726,512.22
Non-current Assets
Baker Machine 235,890.00 235,890.00 235,890.00 235,890.00 235,890.00
Baking Tools and Equipment 360,411.00 360,411.00 360,411.00 360,411.00 360,411.00
Furniture and Fixture 98,800.00 98,800.00 98,800.00 98,800.00 98,800.00
Leasehold Improvement 85,000.00 85,000.00 85,000.00 85,000.00 85,000.00
Accumulated Depreciation- Baker
Machine (23,589.00) (47,178.00) (70,767.00) (94,356.00) (117,945.00)
Accumulated Depreciation-
Manufacturing Tools and Equipment (45,051.38) (90,102.75) (135,154.13) (180,205.50) (225,256.88)
Accumulated Depreciation-
Leasehold Improvement (8,500.00) (17,000.00) (25,500.00) (34,000.00) (42,500.00)
Accumulated Depreciation- Furniture
and Fixture (16,466.67) (32,933.33) (49,400.00) (65,866.67) (82,333.33)
Total Non-current Assets 686,493.96 592,886.92 499,279.88 405,672.83 312,065.79
Total Assets 1,696,477.55 2,506,339.88 3,427,735.80 4,602,456.55 6,038,578.01
Liabilities and Equity

Accounts Payable 130,864.70 132,173.35 134,816.81 141,557.65 148,635.54
Withholding Tax payable-expanded 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Withholding Tax Payable-wages 18,705.92 18,705.92 18,705.92 18,705.92 18,705.92
SSS Premium Payable 15,925.48 15,925.48 15,925.48 15,925.48 15,925.48
Philhealth Premium Payable 14,887.50 14,887.50 14,887.50 14,887.50 14,887.50
Pag Ibig Premium Payable 3,750.00 3,750.00 3,750.00 3,750.00 3,750.00
Total Liabilities 194,133.60 195,442.25 198,085.71 204,826.55 211,904.44
Share Capital 625,000.00 625,000.00 625,000.00 625,000.00 625,000.00

Share Premium 62,500.00 62,500.00 62,500.00 62,500.00 62,500.00
Retained Earnings 814,843.95 1,623,397.63 2,542,150.08 3,710,129.99 5,139,173.57
Total Liabilities and Equity 1,696,477.55 2,506,339.88 3,427,735.80 4,602,456.55 6,038,578.01
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DIY, DOUGHNUTS INC.
INCOME STATEMENT
5 YEARS PROJECTION
Sales 39,315,656.20 39,708,812.76 40,502,989.01 42,528,138.46 44,654,545.39

Cost of Sale 28,876,046.85 29,226,029.87 29,761,804.55 31,190,840.04 32,692,782.04
Gross Profit 10,439,609.34 10,482,782.89 10,741,184.46 11,337,298.43 11,961,763.35
Operating Expenses
Advertising Expenses 25,350.00 25,350.00 25,350.00 25,350.00 25,350.00
Telecomunication 53,988.00 53,988.00 53,988.00 53,988.00 53,988.00
Salaries Expenses-operating 1,509,840.00 1,509,840.00 1,509,840.00 1,509,840.00 1,509,840.00
Gas and Oil 1,572,626.25 1,588,352.51 1,620,119.56 1,701,125.54 1,786,181.82
Repair and Maintenance 11,232.85 22,465.69 33,698.54 44,931.38 56,164.23
Rent Expense 1,680,000.00 1,680,000.00 1,680,000.00 1,680,000.00 1,680,000.00
Light and Water 2,859,243.30 2,898,743.33 2,956,718.20 3,104,554.11 3,259,781.81
Administrative Expenses
Salaries Expenses-administrative 1,524,000.00 1,524,000.00 1,524,000.00 1,524,000.00 1,524,000.00
Depreciation Expense 24,966.67 24,966.67 24,966.67 24,966.67 24,966.67
Organizational Cost 14,299.50
Total 9,275,546.56 9,327,706.20 9,428,680.96 9,668,755.69 9,920,272.52
Income Before Tax 1,164,062.79 1,155,076.69 1,312,503.50 1,668,542.73 2,041,490.83
Income Tax Expense 349,218.84 346,523.01 393,751.05 500,562.82 612,447.25
Net Income 814,843.95 808,553.68 918,752.45 1,167,979.91 1,429,043.58
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SUPPORTING SCHEDULE:
COST OF GOODS SOLD - DOUGHNUT
Statement Of Cost Of Goods Manufactured
Direct Materials Beginning - 21,940.40 22,159.80 22,603.00 23,733.15

Purchases 2,617,294.00 2,643,466.94 2,696,336.28 2,831,153.09 2,972,710.75
Direct Materials End 21,940.40 22,159.80 22,603.00 23,733.15 24,919.81
Materials Used 2,595,353.60 2,643,247.54 2,695,893.08 2,830,022.94 2,971,524.09
Direct Labor 1,152,000.00 1,152,000.00 1,152,000.00 1,152,000.00 1,152,000.00
Factory Over Head 5,687,702.23 5,744,579.25 5,859,470.83 6,152,444.37 6,460,066.59
Manufacturing Cost 9,435,055.83 9,539,826.78 9,707,363.92 10,134,467.32 10,583,590.68
Finished Goods Beginning - 24,731.18 24,978.49 25,478.06 26,751.96
Goods Available For Sale 9,435,055.83 9,564,557.96 9,732,342.40 10,159,945.37 10,610,342.64
Finished Goods End 24,731.18 24,978.49 25,478.06 26,751.96 28,089.56
Cost of Good Sold Doughnut 9,410,324.65 9,564,310.65 9,706,864.35 10,133,193.41 10,582,253.09
COST OF GOODS SOLD -BEVERAGES
Beverage Inventory Beginning - 1,339.80 1,353.20 1,380.26 1,449.27

Purchases 19,467,062.00 19,661,732.62 20,054,967.27 21,057,715.64 22,110,601.42
Beverage Inventory Ending 1,339.80 1,353.20 1,380.26 1,449.27 1,521.74
Cost Of Good Sold 19,465,722.20 19,661,719.22 20,054,940.21 21,057,646.62 22,110,528.95
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MANPOWER REQUIREMENTS
Salary Deductions Personal Taxable

Department Position Total Deductions Gross Amount
Basic Fixed SSS Philhealth HDMF W/Tax
Exemptions Income
President 360,000.00 6,975.60 4,500.00 600.00 62,075.60 297,924.40 50,000.00 247,924.40 49,481.10
Vice-President 300,000.00 6,975.60 4,500.00 600.00 12,075.60 287,924.40 50,000.00 237,924.40 46,981.10
Finance Manager 216,000.00 6,975.60 2,700.00 600.00 60,275.60 155,724.40 50,000.00 105,724.40 15,644.88
Store Operations Manager - 1 216,000.00 6,975.60 2,700.00 600.00 60,275.60 155,724.40 50,000.00 105,724.40 15,644.88
Store Operations Manager - 2 216,000.00 6,975.60 2,700.00 600.00 60,275.60 155,724.40 50,000.00 105,724.40 15,644.88
Admin Store Operations Manager - 3 216,000.00 6,975.60 2,700.00 600.00 60,275.60 155,724.40 50,000.00 105,724.40 15,644.88
Baker - 1 192,000.00 6,975.60 2,400.00 600.00 59,975.60 132,024.40 50,000.00 82,024.40 10,904.88
Baker - 2 192,000.00 6,975.60 2,400.00 600.00 59,975.60 132,024.40 50,000.00 82,024.40 10,904.88
Baker - 3 192,000.00 6,975.60 2,400.00 600.00 59,975.60 132,024.40 50,000.00 82,024.40 10,904.88
Baker - 4 192,000.00 6,975.60 2,400.00 600.00 59,975.60 132,024.40 50,000.00 82,024.40 10,904.88
Production Baker - 5 192,000.00 6,975.60 2,400.00 600.00 59,975.60 132,024.40 50,000.00 82,024.40 10,904.88
Baker - 6 192,000.00 6,975.60 2,400.00 600.00 59,975.60 132,024.40 50,000.00 82,024.40 10,904.88
Cashier - 1 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Cashier - 2 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Cashier - 3 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Helper - 1 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Helper - 2 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Helper - 3 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Helper - 4 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Helper - 5 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Service Crew
Helper - 6 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Security Guard - 1 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Security Guard - 2 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Delivery Rider - 1 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
Delivery Rider -2 167,760.00 6,104.40 1,950.00 600.00 58,654.40 109,105.60 50,000.00 59,105.60
TOTAL 2,180,880.00 2,676,000.00 163,064.40 59,550.00 15,000.00 1,437,614.40 3,419,265.60 1,250,000.00 2,169,265.60 224,471.00
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Basis for Manufacturing and Administrative Expenses
DIRECT LABOR FACTORY OVERHEAD Operating Expenses Administrative Expenses

Department Position
President 360,000.00
Vice-President 300,000.00
Finance Manager 216,000.00
Store Operations Manager - 1 216,000.00
Store Operations Manager - 2 216,000.00
Admin Store Operations Manager - 3 216,000.00
Baker - 1 192,000.00
Baker - 2 192,000.00
Baker - 3 192,000.00
Baker - 4 192,000.00
Production Baker - 5 192,000.00
Baker - 6 192,000.00
Cashier - 1 167,760.00
Cashier - 2 167,760.00
Cashier - 3 167,760.00
Helper - 1 167,760.00
Helper - 2 167,760.00
Helper - 3 167,760.00
Helper - 4 167,760.00
Helper - 5 167,760.00
Service Crew
Helper - 6 167,760.00
Security Guard - 1 167,760.00
Security Guard - 2 167,760.00
Delivery Rider - 1 167,760.00
Delivery Rider -2 1,152,000.00 503,280.00 1,509,840.00 1,524,000.00
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Lapsing Schedule of Depreciation
Particulars Cost Useful Life Depreciation

Manufacturing Tools and
Equipment 360,411.00 8 45,051.38
Baker Machine 235,890.00 10 23,589.00
Furnuture and Fixture 98,800.00 6 16,466.67
Total 695,101.00 85,107.04
Employee Benefits-Company Contributions
Salary Employer's Share

Department Position
Basic Fixed SSS Philhealth HDMF
President 360,000.00 1,208.70 4,500.00 600.00
Vice-President 300,000.00 1,208.70 4,500.00 600.00
Finance Manager 216,000.00 1,208.70 2,700.00 600.00
Store Operations Manager - 1
216,000.00 1,208.70 2,700.00 600.00
Store Operations Manager - 2 216,000.00 1,208.70 2,700.00 600.00
Admin Store Operations Manager - 3 216,000.00 1,208.70 2,700.00 600.00
Baker - 1 192,000.00 1,208.70 2,400.00 600.00
Baker - 2 192,000.00 1,208.70 2,400.00 600.00
Baker - 3 192,000.00 1,208.70 2,400.00 600.00
Baker - 4 192,000.00 1,208.70 2,400.00 600.00
Production Baker - 5 192,000.00 1,208.70 2,400.00 600.00
Baker - 6 192,000.00 1,208.70 2,400.00 600.00
Cashier - 1 167,760.00 1,041.30 1,950.00 600.00
Cashier - 2 167,760.00 1,041.30 1,950.00 600.00
Cashier - 3 167,760.00 1,041.30 1,950.00 600.00
Helper - 1 167,760.00 1,041.30 1,950.00 600.00
Helper - 2 167,760.00 1,041.30 1,950.00 600.00
Helper - 3 167,760.00 1,041.30 1,950.00 600.00
Helper - 4 167,760.00 1,041.30 1,950.00 600.00
Helper - 5 167,760.00 1,041.30 1,950.00 600.00
Service Crew
Helper - 6 167,760.00 1,041.30 1,950.00 600.00
Security Guard - 1 167,760.00 1,041.30 1,950.00 600.00
Security Guard - 2 167,760.00 1,041.30 1,950.00 600.00
Delivery Rider - 1 167,760.00 1,041.30 1,950.00 600.00
Delivery Rider -2 167,760.00 1,041.30 1,950.00 600.00
TOTAL 2,180,880.00 2,676,000.00 28,041.30 59,550.00 15,000.00
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DIY, DOUGHNUT
UNIT SALES
5 YEARS PROJECTION
Unit Sales Projection

YEAR 2014 2015 2016 2017 2018
Expected unit sold 558,350 614,185 737,022 1,105,533 1,658,299
Ready-made 379,678 417,646 626,469 939,703 1,409,555
Sweet-Coated 129,091 142,000 212,999 319,499 479,249

Sugar-Free 117,700 129,470 194,205 291,308 436,962
Fruity 49,358 54,294 81,441 122,161 183,242
Veggie 83,529 91,882 137,823 206,735 310,102
Customized 178,672 196,539 235,847 353,771 530,656
Coffee 367,394 404,134 606,201 909,301 1,363,951

Milk-Tea 23,451 25,796 38,694 58,040 87,061
Beverages 390,845 429,929 515,915 773,873 1,160,810
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DIY, DOUGHNUT
PESO SALES
5 YEARS PROJECTION
Pesos Sales Projection
YEAR Unit Price 2014 2015 2016 2017 2018
Ready-made 9,510,933.73 9,606,043.07 9,798,163.93 10,288,072.12 10,802,475.73
Sweet-Coated 20 2,581,810.35 2,607,628.46 2,659,781.03 2,792,770.08 2,932,408.58

Sugar-Free 25 2,942,504.45 2,971,929.49 3,031,368.08 3,182,936.49 3,342,083.31
Fruity 30 1,480,744.17 1,495,551.62 1,525,462.65 1,601,735.78 1,681,822.57
Veggie 30 2,505,874.76 2,530,933.50 2,581,552.17 2,710,629.78 2,846,161.27
Customized 15 2,680,079.95 2,706,880.75 2,761,018.37 2,899,069.28 3,044,022.75
Coffee 70 25,717,600.54 25,974,776.54 26,494,272.08 27,818,985.68 29,209,934.96

Milk-Tea 60 1,407,041.97 1,421,112.39 1,449,534.64 1,522,011.37 1,598,111.94
Beverages 27,124,642.51 27,395,888.94 27,943,806.72 29,340,997.05 30,808,046.91
Total Sales 39,315,656.20 39,708,812.76 40,502,989.01 42,528,138.46 44,654,545.39
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Pre-operating Costs Amount

SEC
Filing fee 5,000.00
Legal reaserch 50.00
Document and other registration fee 980.00
6,030.00
BIR Annual Registration fee 500.00
Mayor's Fee 1,207.50
Mechanical Fee 500.00
Electrical Fee 150.00
Annual Barangay Clearance/Permit 600.00
Annual Sanitary Clearance 600.00
Annual Community Tax Certificate 2,000.00
Annual Garbage Fee Payment 150.00
Annual Signboard fee Payment 100.00
Building Fee 480.00
Processing Fee 250.00
Fire Fee 497.00
DTI Permit 730.00
Other Fee 505.00
Total Pre-Organization Cost 14,299.50
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Chapter VI
SOCIO ECONOMIC STUDY
CONTRIBUTION TO THE ECONOMY
DIY Doughnut is a store offering doughnuts and coffee. DIY Doughnut does doughnuts,
everything else is an afterthought.
DIY Doughnut would argue otherwise but doughnuts are commodity. They can be purchased
anywhere and, unless it’s fresh, one doughnut tastes pretty much like any other. The economic
recovery may be slow but our taste for luxury pastry is expanding rapidly (along with our waistlines).
DIY Doughnuts is a central frame of reference for organizational decisions, strategic goal
setting and behaviors that respect all of our stakeholders. Corporate Social Responsibility is also a way
to formalize our tradition of doing what's right for our consumers, employees and the communities
we serve.
Our Priorities
Our People: From our employees, customers and suppliers the company will be treating everyone
with respect, equality and fairness in order for them to be empowered to reach their goals.
Our Guests: We are passionate about offering our guests delicious products that they will enjoy,
giving them plenty of menu options, and providing accurate nutrition information so that they can
make the best choices for themselves.
Our Neighborhood: We are dedicated to serve the basic needs of our local communities – from
providing food for the hungry and support for children’s health and wellness, to ensure that our
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neighborhood are safe and secure.
Our Planet: We recognize that everything we do has an impact on the environment. From the
materials we use, to the way we construct and operate our stores, we are committed to adopt better
and more sustainable approaches whenever possible.
SOCIAL RESPONSIBILITY
Local Communities- Having a positive impact on communities near and far is at the heart of our
values. We’re friendly to our customers and we treat our staffs well. They expect businesses to be
responsible and ethical, but we don’t just do it for those reasons, we genuinely believe it’s important
to give something back when you can.
Ecology- this will give as a very inspiring atmosphere which is needed in attracting customers and it
will be more profitable for everybody once they visited.
Infrastructures- the materials needed in this will only cost less due to the simplicity and convenience
of the shop.
Landscape- the place which is commercial are having a very exciting outlook because it is not any
more expected to build or to make use of any landscape, due to the site we fully conducive for any
commercial purpose.
Others- it is only proper that more space be needed in the future because we are expecting for an
expansion in our business.
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Conclusion
The “Dough-It-Yourself” Shop is still unfamiliar in the doughnut industry which is a competitive
advantage to its competitors. We envisioned of making it possible for the consumers to have the
freedom to customize the flavors that they wanted to put in their doughnut. It can be simple and can
be from the most flavor-filled doughnut and yet it would still be in an affordable price. We thought of
producing vegetable and fruit flavored doughnuts so that customers wouldn’t have to worry about
getting too fat because of sugar and they could enjoy the guilt-free pleasures of eating our product.
We made an assessment and evaluation of the business’ condition and future business
potentials. The data needed for analysis and interpretation come mostly from the financial statements
(see pages 91-92) where key figures are sought and meaningful relationships are developed and
analyzed.
A current ratio is an indication of a company's ability to meet short-term debt obligations. The
higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by
current liabilities. The current ratios of the business from 2015 to 2019 are: 5.20, 9.79, 14.78, 20.49
and 27.02. (See computation below) The current assets of the company show that it is more than
twice the current liabilities and gradually increases each year, it indicates that the business will be
able repay its debts over the period of next 12 months and is generally considered to have good short-
term financial strength.
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2015 2016 2017 2018 2019
CURRENT ASSETS 1,009,983.59 1,913,452.96 2,928,455.92 4,196,783.72 5,726,512.22
CURRENT LIABILITIES 194,133.60 195,442.25 198,085.71 204,826.55 211,904.44
CURRENT RATIO 5.20 9.79 14.78 20.49 27.02
Payback Period Payback period is the time in which the initial cash outflow of an investment is
expected to be recovered from the cash inflows generated by the investment. Payback period is equal
to initial investment cash inflow over average net income. The payback period of the business is 0.61
year or 7 months. (See computation below) It indicates that the cash inflows are certain.
NET INCOME SHARE CAPITAL 625,000.00
2015 814,843.95 AVERAGE NET INCOME 1,027,834.71
2016 808,553.68 PAYBACK PERIOD 0.61
2017 918,752.45
2018 1,167,979.91
2019 1,429,043.58
5139173.57/5
AVERAGE NET
INCOME 1,027,834.71
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Accounting rate of return (return on investment) is the ratio of estimated profit of a business
to the investment made in the business. The percentages of return on investment of the business
from 2015 to 2019 are: 54%, 35%, 28%, 27% and 35%. (See computation below) It recognizes the
profitability factor of investment and indicates that the business will certainly grow profits year after
year.
Our business will also be managed by competent and hardworking employees that will ensure
the achievement of our business goals. We'll make sure that we will be able to accommodate the
needs of our customers, to turn the hungry fans into satisfied customers, that our bakers will bake
reactively to proactively and that we will deliver better customer experience. We are certain that the
business will fulfill its mission of making and serving the freshest, most delicious doughnuts quickly
and courteously in modern, well merchandised stores. And that the business will attain its vision to
become dominant worldwide and be known because of high quality doughnuts and compatible high
quality products. A plan for expansion after 3 to 4 years is also possible. We therefore conclude that
our business is feasible and will be a sure hit to the food industry.
104

Final Feasibility Final

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DR. FILEMON C.

AGUILAR MEMORIAL COLLEGE OF LAS PIÑAS

The name of business is DIY “Dough – it- Yourself” Doughnut, Inc.

“Dough – it – Yourself” Doughnuts, Inc.

The business is located at North Gate Avenue Cyberzone, FilinvestCorp. City

Muntinlupa City, Metro Manila.

The organization vision statement is to become a dominant worldwide of high quality

doughnuts and compatible high quality products.

Doughnuts, Inc. is to provide drive thru and delivery services.

plays a key role in placing a business in the forefront.

used to determine the feasibility of the product.

Objectives of the Study

product. Specifically, it attempts to discuss the following objectives:

B. MARKET SURVEY RESULT

answered by the respondents

1. Do you want doughnut?

and doughnuts corner.

2. How do you want your doughnut to be made?

 32% of respondents answered that they to patronize the customized doughnuts.

 68% of respondents answered that they want ready-made doughnuts.

3. Are you familiar with customized doughnuts?

 21% answered they are familiar with the customized doughnuts.

4. Do you like to customize your own doughnut?

 45% answered they want to customized their own doughnuts.

 55% answered they want to customized their own doughnuts.

6. Which is more convenient for you?

7. Which beverages you want to match to your customized doughnut?

8. How much are you willing to pay for customized doughnut?

 54% answered that they are going to patronize our product.

 46 answered that they are going to patronize our product.

C. CC. COMPETITOR ANALYSIS

(1) Direct Competitor

(2) Indirect Competitor

D. DEMAND AND SUPPLY ANALYSIS

customers will also appreciate the dun and fast service.

Demand Figures Data

Total % of 2014 2015 2016 Average growth Rate

Local 100% 12.4% 13.64% 16.37% 14.14%

Total 100% 12.4% 13.64% 16.37% 14.14%

Demand Projection for the Next 5 Years

Year Operation Target Rate Total Projected Demand

Supply Projection for the next 5 Years

Year Operation Total Projected Supply

Demand and Supply Analysis

Year Demand Supply D-S Gap Unsatisfied

Projected =(D-S GAP/D)x 100%

Year 1 1,116,700 564,000 552,700 49%

Year 2 1,228,370 569,640 558,730 45%

Year 3 1,842,555 581,033 1,261,522 68%

benefit of product differentiation.

itself experience which gives us an advantage over others.

 Offers coffee and doughnuts with an affordable price.

 Offers a typical type of doughnut for health conscious person.

benefits. The customers also prefer fresh products.

table makes it quite innovative and a new experience.

established players like Contis and Starbucks shop.

Continued growth is anticipated. However, unforeseen or unanticipated economic recession

would reduce disposable income.

a. Market Share Analysis

Market Share for DIY Doughnuts

because it can provide unique, healthy and affordable products.

Unit Sales Projection

YEAR 2014 2015 2016 2017 2018