ORGANIC PACKAGING CONTAINER

___________________________________________

Project Proposal
Presented to the Undergraduate Faculty of Department of Business Administration
University of San Carlos
Cebu City, Philippines

In Partial Fulfillment
Of the requirement for the Course
Integrative Course on Social Entrepreneurship (SOEN II)
______________________________________________

ARNAIZ, ZHANRA THERESE CULLETA

CESIBAN, MARISA VILLACORTA
GERODIAS, SHELA MAE SUMUGAT
MUYARGAS, KRISTINE ANN TAMBAGO
NOGALIZA, KEISHA MAE SENCIO

May 2020
 ii

ENDORSEMENT SHEET

This Concept paper entitled “ORGANIC PACKAGING CONTAINER” prepared and

submitted by Zhanra Therese C. Arnaiz, Marisa V. Cesiban, Shela Mae S. Gerodias,
Kristine Ann T. Muyargas, and Keisha Mae S. Nogaliza in partial fulfillment of the
requirements for the course on INTEGRATIVE COURSE ON SOCIAL
ENTREPRENEURSHIP has been accepted for ORAL PRESENTATION.

___________________________________________________

MARIA ANGELITA R. VALLES

Adviser
 STUDENTS’ DECLARATION OF ORIGINALITY

We, Zhanra Therese C. Arnaiz, Marisa V. Cesiban, Shela Mae S. Gerodias, Kristine Ann
T. Muyargas, and Keisha Mae S. Nogaliza, here submit our paper entitled “ORGANIC
PACKAGING CONTAINER” and truthfully declare that the paper is a product of our
original research investigation. To our best knowledge and belief, it contains no material
previously published or written by another person nor does it include contents that are
falsified or fabricated. We also sought permission from the copyright owner to use text,
illustrations and/or framework substantively used in the paper. I understand that should
the University of San Carlos, represented by its Administrators and Faculty, eventually
discover that my attestations herein are not so, I accept the right of the University to
impose the appropriate sanctions including the non-granting of the degree, if so
warranted.

Signed (input date) at the University of San Carlos, Cebu City, Philippines.

Student’s Name Year/ Course Signature

Arnaiz, Zhanra Therese BSBA - Marketing Management 2

Cesiban, Marisa BSBA - Marketing Management 2

Gerodias, Shela Mae BSBA - Marketing Management 2

Muyargas, Kristine Ann BSBA - Marketing Management 2

Nogaliza, Keisha Mae BSBA - Marketing Management 2

Attested by:

Name of Faculty Adviser : MARIA ANGELITA R. VALLES .

Signature of Faculty Adviser : ___________________________________________

Date Signed : ___________________________________________

 iii

EXECUTIVE SUMMARY

This paper is a project proposal presenting organic packaging containers which

the group came up with from their social enterprise concept that is dedicated to improve
the quality of life of residents from Sitio Sab-a, Mandaue City and reducing plastic
production and waste problems that the society and the world is currently in crisis with.
The group was able to identify various social problems and few environmental issues
that is negatively affecting the holistic living and development of the members of the
community. As mentioned, the enterprise aims to improve the quality of life of the
residents by helping them acquire employable skills as their lack of employable skills is
identified to be reducing and impede their current earning potential; providing them
employment to increase the beneficiaries’ purchasing power so that they can provide for
their families and have a better and more comfortable life than what they currently have;
guiding them to have a major life improvement as they face hopelessness and to change
their pessimistic mindset towards having a better life since they are only focused on
survival; as well as to boost their morale by acknowledging them and improving their
skills so that they can be confident, stable, productive, earning and nurturing individuals
of the community.
The proposed prototype offers to bring the community—by being the beneficiary
of this project as well as the key people of the enterprise—and nature—who can also
benefit from this project—together by providing local and good quality organic containers
taken from ethical and sustainable sources. These organic containers will be used as
packaging for shampoos, soaps, lotions, and etc. It is made from either bamboo or
coconut shells that are sustainably sourced as an alternative or a more eco-friendly
substitute to plastic or glass containers that heavily affects the environment negatively in
its production down to disposable while having the same utility. These main raw
materials will be sourced from local suppliers in Tabunok, Cebu.
The main users for the proposed prototype are categorized between the behavior
among B2C consumers, and B2B customers and consumers. Both B2B but mainly B2C
consumers are identified to be generation X and millennial reformers that have a higher
education. The proposed product supports the needs of the main users as it is a product
that connects and upholds the moral, ethical and environmental beliefs and values of the
target consumers as to how they consume and store items. The proposed product also
aims to meet aesthetic needs of users and gives importance to practicality and features.
 iii

Initially, there will be 20-30 workers to be employed. The enterprise would

associate and coordinate with various partners to execute the solution possibly. The
enterprise will have a close coordination with the with NGOs to finance and invest in the
company; community’s local government unit in hiring people from the community who
are willing to work for the enterprise; TESDA by helping the hired workers acquire
technical knowledge and develop skills that are related and connected to the work they
will encounter later on.
Hopefully, the prototype being proposed will positively impact and develop the
community, economy, and the environment.
 iv

ACKNOWLEDGMENT

With boundless love and appreciation, the researchers would like to extend their
heartfelt gratitude and appreciation to following people who help them making this
Paper:
To our parents, thank you for your love, support and guidance.
To our classmates and friends, thank you for your support and words of
encouragement in making this paper less stressful.
To our SOEN 2 adviser, Mrs. Maria Angelita Valles, thank you for the
appreciation and help on this study. You never fail to impart us the knowledge that we
need.
To each member of the group, we deserve a pat on the back. We could never
have done this study without everyone’s cooperation and skilled minds. We had been
enthusiastic all throughout the way and overall, we did a really great job.
Thank you and God bless.

The Authors
 v

TABLE OF CONTENT

Section Page No,

Title Page i
Endorsement Sheet ii
Executive Summary iii
Acknowledgement iv
Table of Content v
List of Figures vi

1 INTRODUCTION
The Social Problem 1
Project Statement (HMW Question) 2
Proposed Innovative Solution/s 3
Barriers and Constraints 3
Root Cause Analysis 16
2 THE CONCEPT
Target User 18
Ideas to Concept 19
User Experience Journey 21
3 PROTOTYPING
The Proposed Prototype 22
Social Impact 24
Solution Concept Synthesis 25
Business Model Canvas 26
4 TECHNICAL FEASIBILITY AND VIABILITY
ANALYSIS
Capabilities, Assets, and Resources Needed 29
Cost Requirement 30
External Partnership and Linkages 31
Processes 31
Value Proposition to Users 32
Value Proposition to Other Stakeholders 33
Price and Payment Structure 34
Distribution Channels 35
Promotions 35
5 CONCLUSION 37
BIBLIOGRAPHY
APPENDICES
A Map of the Community 43
B Curriculum Vitae 44
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LIST OF FIGURES

Figure Page No.

1 Root Cause Analysis for Unemployment 16

2 Root Cause Analysis for Excessive Use of 17
single-use plastic as packaging
3 Storyboard 22
4 Business Model Canvas 26
5 Direct Channel 35
6 Retail Channel 35
 1

CHAPTER I:
INTRODUCTION

THE SOCIAL PROBLEM

Upon conducting the community immersion in Sitio Sab-a, Basak, Mandaue, the
group identified many social problems. The group concluded that the citizens of the
community are suffering from overall poor quality of life but the group focused mainly on
the unemployment of the residents since it is one of the factors that greatly affect their
current standard of living as well as the single-use plastic problem that the community
and other communities are facing.
● To be more specific, many citizens of Sitio Sab-a, Basak, Mandaue are either
unemployed or working under or within the minimum wage rate. The members
part of the workforce are usually PUJ drivers, construction workers and factory
workers earning less than minimum wage to support their families which is an
issue because it cannot support their families to have a sustainable and
conditioned life as many of the families have a number of mouths to feed which is
confronted by SDG 1: No Poverty and SDG 8: Decent Work and Economic
Growth. Many citizens are also unable to afford their electricity and water bills
thus they have no access to these commodities and sometimes steal water and
energy from neighbors which is a problem that is undertaken in the SDG 7:
Affordable and Clean Energy.
● Another prevalent problem in the community is the population within a
household. The number of people in many households in the area cannot be
sustained by the income earned by the household which is why the members of
these households are deprived in terms of necessary basic daily commodities.
Their insufficient salaries make eating three times a day their sole goal as they
are limited to different opportunities as they prioritize survival which is confronted
in the SDG 2: Zero Hunger. These issues also result in a negative strain in the
relationship among members of the household and community.
● Furthermore, many of the members of the community are acquitted to crimes
such as drug usage, drug dealing, stealing and other crimes. The way authorities
handle the issue is also troublesome morally, ethically and technically which is
focused on the sustainable development goal 16: Peace, Justice and Strong
Institution.
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● Education among the members is also another issue. Many citizens did not have
or did not finish their formal education. Most of the students who stopped getting
their academic education are demotivated and do not see the value of academic
education which is the focus on SDG 4: Quality Education.
● The houses of the members of the society are close together, and it is built in
highly flammable materials and poor-quality materials. Despite most citizens
being construction workers, many of their houses lack structural integrity and as
stated earlier has an open drainage system filled with waste given that the
garbage trucks cannot enter their area due to its narrow path which is dealt in the
SDG 11: Sustainable Cities and Communities.
● The group would also like to stress the environment as it is not a healthy
environment especially for the children which are exposed to the area that is full
of hazard (sanitary and safety) as there is an open canal in the area, this issue
and falls under the SDG 9: Industry, Innovation and Infrastructure; and there is
waste, plastic waste specifically all over the community’s vicinity and this issue is
to be addressed under SDG 3: Good Health and Well-Being, and SDG 6: Clean
Water and Sanitation.

PROJECT STATEMENT (HMW Question)

Organic Packaging Container is a concept proposed with the goal of improving
the quality of life of the residents of Sitio Sab-a, Barangay Basak, Mandaue City and
reducing plastic production and waste problems that the society and the world is
currently in crisis with. The prototype is a container made from either bamboo or coconut
shells that are sustainably sourced as an alternative or an eco-friendly substitute to
plastic or glass containers that heavily affects the environment negatively in its
production down to its disposal while having the same utility. In other words, the
proposed product prototype is an environmentally friendly and sustainably sourced
packaging and container solution that is opposed to the linear consumption and
destructive production of plastic packaging and containers that supports local
communities starting with Sitio Sab-a, Brgy. Basak, Mandaue City by enabling them and
providing employment.
 3

PROPOSED INNOVATIVE SOLUTION/S

The group’s proposed concept aims to improve the quality of life of the residents
of Barangay Basak by; helping them acquire employable skills and knowledge since
their lack of employable skills and knowledge reduces their earning potential; providing
them employment to increase the beneficiaries’ purchasing power so that they can
provide for their families and have a better and a more comfortable life than what they
currently have; guiding them to have a holistic life improvement as they face
hopelessness and have a negative mindset towards having a better life since they are
only focused on survival and are only accustomed to their current life since it is
imbedded in their culture; as well as to boost their morale by acknowledging them,
involving them and improving their skills and knowledge that they can be confident about
as earning and nurturing individuals of the community.
And to address the plastic waste management of the society, the products that
the group is proposing for an establishment of a social enterprise are sustainable and
eco containers/ packaging which starts from liquid soap, shampoo and lotion containers.
These containers are made up of bamboo and coconut shells that are sustainable and
eco-friendly that would help lessen the plastic waste of our country and hopefully reduce
the impact of single-use plastic production and waste.

BARRIERS AND CONSTRAINTS

❖ Political
Political factors that may have an effect on social enterprise are
government policies, fiscal policies, and other laws that may be affected.
Government policies create laws and systems to regulate companies in order to
impose their limits on what can be achieved in the marketplace. In other words,
the government of the Philippines has a huge effect on the economy through its
policies and actions. From time to time, the government changes certain laws
and systems, which would cause the enterprise to adjust the way it operates and
how it deals with the different players in the market.
Currently, the Philippines still has no specific legislation that focuses on
social enterprises. However, according to the British Council, there are two Bills
under consideration that will offer significant support for the sector - the Social
Value Bill and the Poverty Reduction through Social Enterprise (PRESENT) Bill.
The Senate Bill No. 350: Social Value Act was introduced by Senator Paolo
 4

Benigno "Bam" A. Aquino IV in July of 2016. The goal of this bill is to incorporate
the principle of "social value" as an additional criterion for Philippine government
procurement, in order to optimize benefits for society and also to enhance
service quality and inclusive e-growth. The House Bill No. 6085: Poverty
Reduction through Social Enterprise (PRESENT) Act was introduced by Hon.
Lorenzo ‘Erin’ R. Tanada III in April of 2012. This Bill aims to provide a better
environment for emerging SEs by acknowledging them as an official poverty
reduction mechanism, and by offering opportunities for them. In addition, the
Magna Carta confers rights and privileges on social enterprises and proposes “a
Poverty Reduction through Social Entrepreneurship or PRESENT program” and
the creation of a Social Enterprise Commission. Sen. Paolo Benigno “Bam”
Aquino IV filed the Senate version of the bill in 2015.
At the onset, social enterprises may need to negotiate with local
government units (LGUs) where the principal place of business is situated and
where they comply with other conditions before the legal existence of the
business can be recognized. To name a few, the Department of Trade and
Industry’s Negosyo Center Program which helps in business registrations
through Philippine Business Registry (PBR). However, since the social enterprise
is a corporation, it will be registered in the Securities and Exchange Commission
(SEC). In addition, the Philippine Investment Board (BOI) is an affiliated agency
of the Department of Trade and Industry (DTI). It is a leading government agency
responsible for investment promotion in the Philippines that guides business
procedures and requirements, and can provide industry updates and information.
BOI is responsible for organizing missions both locally and internationally which
can pave the way for exposure and opportunity to link with other businesses.
Another legislation that supports the business is the Go Negosyo Act (RA
10644), which calls for the establishment of business support centers, or
Negosyo in all cities, provinces and municipalities throughout the country . The
purpose of this act is to establish a start up fund for the business and to facilitate
the expansion of services such as technology transfer, production and
management training, and marketing assistance.
The country’s taxation laws are another key area of government policy
that affects every business. There are certain taxation laws that affect how the
business will operate, from its costing process to how the company sets prices to
 5

its end users. The most common example, and is widely used tax, is the value-
added tax (VAT). The value added tax is an indirect tax and the amount of tax
may be shifted or passed on to the buyer, transferee or lease of goods,
properties or services (Republic Act No. 7716). In general, VAT is a business tax
wherein it applies to all sales of goods and services in the normal activities of the
business. This affects all kinds of business thus, affecting Ferry Book’s costing
and pricing schemes.
Labor law is a legislation that defines the duties and rights in employment.
It covers standard rules regarding employment, such as pre-employment
policies, working conditions, pay rates, working hours, employee benefits,
termination of employment, and so on. Labor law also offers guidance for
employers to ensure equity and safety in the workplace. Workplace safety law
provides for proper ventilation requirements in warehouses, adequate exits,
required breaks after a defined number of hours worked, restrictions on driving
and flying hours and rules on the handling of certain products.
Labor laws that guarantee employees the right to organize allow workers
to form unions if the employees can not come to terms with management on an
issue and prohibits employers from taking any actions that discourage the
formation of unions. Workers can collect dues that pay for representatives who
negotiate for them with management. Moreover, labor laws can proliferate the
tendency to increase expenses if businesses have to upgrade or maintain the
physical aspects of their workplace to meet safety standards. Employee actions
arise from injuries on the workplace, wrongful termination, harassment and
discrimination. Employers who do not correctly post required signs notifying
employees of their rights face fines and a weakened defense in case of a lawsuit.
Overtime laws prohibit employers from making employees work long hours
without extra pay -- and they often prohibit employers from even asking workers
to put in overtime hours. Collective bargaining agreements often result in higher
pay and benefits and stricter work rules. Minimum wage laws can increase
payroll costs in a marketplace with high unemployment and low wage demand.

❖ Economic
Economic factors that can influence social enterprises are GDP (Gross
Domestic Product), GDP (Gross National Product), inflation levels, tax rates,
 6

economic growth and other economic factors. The economy of a country greatly
affects the position of a business in a way that it may or may not enable a
company to achieve its goals and goals.
According to the World Bank released at the end of the quarter of 2019,
the Philippine economy is expected to remain strong at 6.1% in 2020 given
growing global uncertainties. However, according to The Economist, current
economic growth in the Philippines is likely to slow dramatically this year as the
country suffers from economic disruptions due to coronavirus disease 2019
(COVID-19). Moreover, The Philippines has become one of the fastest-growing
economies in South-east Asia and it is also considered as “newly industrialized”,
but the economy depends on remittances from nationals overseas, and the
services sector generates much of its GDP. The Philippines is now an emerging
economy, i.e. the country has some characteristics of a developed nation but is
not quite there yet. In order to transition into a developed nation, the Philippines
must meet certain requirements, like being able to sustain its economic
development, being very open to foreign investors, or maintaining a very high
stability of the institutional framework (like law enforcement and the government).
Only if these changes are irreversible can they be classified as a developed
nation. The Philippines also situated a switch to services and manufacturing
wherein employment in these areas has increased and the country is now among
those with the highest employment in the tourism industry worldwide. This
transition was not entirely voluntary but also due to decreasing government
support, the liberalization of trade, and reform programs.
According to the Asian Development Bank(ADB), In its annual flagship
economic publication Asian Development Outlook (ADO) 2020, the Philippines
gross domestic product (GDP) of the Philippines is expected to increase by 2.0%
in 2020 following the "enhanced population quarantine" implemented by the
government in March to stop the spread of the novel coronavirus disease
(COVID-19) in the region. The ADB has cited disruptions in tourism, trade, and
manufacturing as well as slower domestic demand as factors of the growth
slowdown, but the government’s expansionary fiscal and monetary policies are
seen to partially offset the potential change.
The country’s Gross National Product (GNP) according to CEIC Data was
reported at 105.124 billion US dollars in September 2019. This records a
 7

decrease from the previous number of 106.320 billion US dollars for Jun 2019.
The Philippines’ Gross National Product data is updated quarterly, averaging
24.034 billion US dollars from March 1981 to September 2019, with 155
observations. The data reached an all-time high of 109.471 billion US dollars in
December 2018 and a record low of 6.715 billion US dollars in September 1985.
According to Philippine Statistics Authority, the inflation rate in the
Philippines continued to decline to 2.5 % in March 2020, from 2.6 % in the
previous month. Inflation in March a year ago was higher at 3.3%. The slowdown
in inflation in March 2020 was primarily due to transport whose index dropped at
an annual rate of 1.8%. With a further downside of 1.1% in the housing, water,
electricity, gas and other fuel indices, and as a result, inflation has declined
during the month. On the other hand, higher annual increases were observed in
the following commodity groups: food and non-alcoholic drinks, 2.6%; Furnishing,
household equipment and home maintenance, 4.2%; communication, 0.5%; and
entertainment and culture, 1.6% as of March 2020.
The employment rate in the Philippines was estimated at 94.7 percent in
January 2020. In January 2019, the employment rate was the same at 94.7
percent. Among the unemployed persons in January 2020, 63.3 percent were
males. Of the total unemployed, the age group 15 to 24 years comprised 42.4
percent, while the age group 25 to 34,32.1 percent. By educational attainment,
26.9 percent of the unemployed were college graduates, 10.0 percent were
college undergraduates, and 28.7 percent have completed junior high school.
Graduates of junior high school includes those high school graduates in the old
curriculum. The regions that have higher unemployment rate are Ilocos Region
with 8.8%, CALABARZON with 6.7%, National Capital Region with 6.2% and
Central Luzon with 6.0%

❖ Social
Social factors that may affect the social enterprise are population trends
such as the population itself, population growth rate, income distribution, lifestyle
attitudes and cultural barriers.
The Philippines, is an island country in Southeast Asia. According to the
National Mapping and Resource Information Authority, it is an archipelago
consisting of 7,641 islands. Manila is the capital city, however Quezon City is the
 8

country’s most populous city. Quezon City is the biggest city in the Philippines
with an estimated population of 2,936,116 (Sawe, 2018). This is followed by
Manila, Caloocan, Davao and Cebu.
According to the Commission on Population and Development (Popcom),
the population of the Philippines will reach 108.7 million in mid-2020, although its
growth has slowed down in the last half of the decade based on the Philippine
Statistics Authority (PSA). Furthermore, according to Philippine Statistics
Authority, the population growth in the Philippines decreased by 0.21 percentage
points (ppt) to 1.52 percent from the previous 1.73 percent between 2010 and
2015. The PSA projection was lower than its previous estimate of 109.9 million
for a difference of 1.2 million. The Filipino population is reported to continue
increasing and is even expected to increase slightly in the years to come, despite
a current overall downward trend in population growth. For now, the population
figures in the Philippines still show a steady increase and the country is still one
of the most densely populated countries in the Asia-Pacific region, however, all
signs point to a decline in the number of inhabitants in the long run. The
population growth rate, as well as the country’s fertility rate, for example, has
also been decreasing for years now, while the death rate has been increasing
simultaneously.  One of the reasons for the downward trend is the aging
population; fewer babies are born each year, while life expectancy at birth has
been steady over the years. Poor healthcare in the country was also a factor for
the downward trend. Currently, The Philippines is still suffering from the
pandemic of coronavirus disease 2019 with 9,485 confirmed cases of the
disease in the country. Out of these cases, 1,315 recoveries and 623 deaths
were reported as of May 04, 2020.
In terms of lifestyle changes, According to Euromonitor International,
despite stubbornly high levels of income inequality, the middle class is
expanding. This is why there is an increased demand for a wide range of modern
products and services. Both average disposable income and consumer
expenditure have increased, particularly among younger, educated urban
households. Younger consumers have also helped drive considerable growth of
internet and mobile internet retailing. The increasing number of single-person
and smaller households is boosting demand for compact household items and
even services for that matter. The cocooning trend, where consumers stay home
 9

and consider domestic entertainment options, has been slowly gaining traction as
consumers are saturated more and more with always-on internet and bigger and
brighter entertainment options. The home is becoming less of a living space and
more of an entertainment space. In short, consumers are finding less and less
reasons to leave their home. In addition, the lifestyle of the Philippines in 2020 is
changing a bit due to the pandemic of coronavirus disease in 2019, where we
couldn't go out openly, we have to wear masks when we go out for safety, and
we have to keep social distances from people.

❖ Technological
Technological factors that can influence social enterprises include
technological developments, technologies and breakthroughs, infrastructure or
technology legislation.
The Philippine startup ecosystem has experienced transition over the
years. Around the beginning of the 2000s, most businesses in start-ups and
technologies focused on business, networking, search engines, directories and
blogging. At this time, Chikka, Sulit, OLX Philippine, MetroDeal and
PinoyExchange are prominent start-ups.
The highly advanced technologies in 2007 included study of data mining,
search technology, architecture focused on service and virtual collaboration.
Attention has also shifted over the years to mobile technologies, data security
and the cloud. Today, the main innovations that affect businesses are artificial
intelligence, augmented reality, block-chain, robots, Internet of Things, robotics,
virtual reality, and 3D printing.
With the rapid technological changes and growing emphasis on
innovation, the founders were asked about the role they play in driving
innovation. 47% of the founders find their position innovative and 40% state that
creativity is leading in their start-ups. The findings show that founders respect
and take responsibility for creativity instead of delegating positions in their start-
ups.
In the past, the majority of innovation-related programs were aimed at
enhancing or creating new goods. Technology is still a concern of the founders,
naturally, since most of them have only started in the last two years.
Improvements in technology are thus necessary. Technology is not only used as
 10

a method to create new and improved goods either. Today, technology also
contributes to understanding what customs want and how goods and services
are distributed.

❖ Environmental
Environmental factors affecting social enterprises are processes that
define all the external and internal components which greatly affect the
organization’s performance. Building relationships with various partners were
needed to overcome the numerous gaps in resources, skills and knowledge
(Holt, & Littlewood, 2015). One type of partnership social enterprises need to
develop is the one with local communities.
Previous ODI research has shown how social enterprises operate in three
niches: markets serving the very poor; markets where innovative products,
services and business approaches are used (e.g. to overcome stigma, to
promote new technology or new services with social/environmental as well as
commercial benefits, where people are unused to paying for a good/service);
basic social services where the state no longer can or was never able to provide
comprehensive, quality coverage (Smith & Darko, 2014).
The social enterprise community in the Philippines has a strong emphasis
on markets that support the very poor. Many social enterprises in the Philippines
are producer-based organizations, collaborating with low-income and
marginalized groups of producers and suppliers. Across the industries in which
these social enterprises operate, the primary objective is always on raising prices
for producers and increasing market access. At a sectoral level, there is less
evidence in the Philippines than elsewhere of social enterprises addressing basic
social needs (Smith & Darko, 2014). This would be in sectors or areas where
there is a lack of public, private and NGO sector presence and where the hybrid
business models of social enterprises offer value-add commercially viable social-
first approaches. There seems to be considerable overlap between the activities
of social enterprises and NGOs, especially in the agriculture sector, with the
apparent re-branding of some NGOs as social enterprises with no clear
indication that their business models have substantially changed. As social
enterprises in the Philippines seek to raise their profile and recognition for their
contribution above and beyond mainstream business and charity, further
 11

understanding of the niches in which they operate and are successful, and
niches they could move into, may be useful.
Climate change in the Philippines would potentially have an effect on
businesses, agriculture, water, energy, coastal ecosystems, infrastructure and
human health. The Philippines has a tropical maritime climate, which means that
the weather is typically warm as well as humid. The Philippines has already
experienced primarily three seasons: warm summer (March-May), rainy season
(between June and November) and cold season (between December and
February). However, the Philippines is highly vulnerable to climate change
impacts, including rising sea levels, increased frequency of extreme weather
events, increasing temperatures and severe rainfall. This is due to its high
exposure to natural hazards (cyclones, landslides, floods, droughts), dependence
on climate-sensitive natural resources and vast coastlines where all major cities
and the majority of the population reside. The Philippines lies in the world’s most
cyclone-prone region, averaging 19–20 cyclones each year, of which 7–9 make
landfall. Sea levels in the Philippines are rising faster than the global average,
increasing the hazard posed by storm surges and threatening permanent
inundation of low-lying areas.

❖ Legal
Legal factors that may affect Social enterprises are the laws that affect
the way businesses operate and customers behave. The Business law, also
known as mercantile law or commercial law refers to a set of laws that govern the
dealings regarding commercial matters, namely business organizations. It
encompasses all laws that guide on how to set up a business and then how to
run it.It includes contracts, laws of corporations, other business organizations,
commercial papers, income tax, secured transactions, intellectual properties, and
other transactions and dealings related to the business. The prime purpose of
business law is to maintain order, resolve disputes, establish generally accepted
standards, protect rights and liberties when it comes to business and its relation
to other businesses, government authorities, and the customers.
Currently there is no social enterprise specific legislation in the
Philippines, but a number of Acts and government programmes influence social
enterprise. In terms of social and livelihood programmes, the Department of
 12

Social Welfare and Development (DSWD) manages the 2009 Self Employment-
Kaunlaran (SEA-K) livelihood programme, which aims to enhance the socio-
economic skills of poor families through establishment of community-based credit
organisations for entrepreneurial development. Started in 2009, the SEA-K
established 1,389 projects affecting 28,939 families nationwide (ADB,
unpublished). DSWD also has the Pantawid Pamilyang Pilipino conditional cash
transfer programme. To introduce livelihood interventions for sustainability in this
programme, the DSWD work with a fair trade organisation that develops coffee
production and communities involved in the coffee farming sector. Through this,
selected beneficiaries are organized into an association and attend training on
business development. Capital assistance as seed money for the beneficiaries’
potential coffee enterprise will also be provided. The DSWD also link the
beneficiaries to the Department of Agriculture and the Philippine Coffee Alliance
(ADB, unpublished).
There are also a number of government interventions to support MSMEs,
which are of shared value to social enterprise. The government enacted the Go
Negosyo Act 2014, which aims to boost MSMEs in the Philippines by
establishing negosyo (business) centers to provide advice on access to finance,
training and other forms of assistance to MSMEs to help them grow and thrive; in
particular addressing the ‘roadblock’ caused by complicated regulatory and fiscal
processes (Office of Senator Bam Aquino, 2014). Two Bills are currently being
debated which will potentially have a bigger direct impact on social enterprise –
the Social Value Bill and the Poverty Reduction through Social Enterprise
(PRESENT) Bill.
The PRESENT Bill was submitted to the Philippine Congress in 2012 and
the first reading of the Bill by the Senate was published in May 2014. The
PRESENT Bill definition of social enterprise was modified in May 2014 as ‘a
social mission-driven organisation that conducts economic activities providing
goods and services directly related to their mission of improving the well-being of
the poor, basic and marginalized sectors and their living environment’. The most
important goal of the PRESENT coalition is for the government to recognise
social enterprises as key actors. Some of the provisions in the Bill would
definitely be a big boost.
 13

Introduced by Senator ‘Bam’ Aquino, the Philippine Social Value Bill

proposes the inclusion of ‘social value’ into all government procurement. The Bill
sets out that the government should ‘include social value in competitive bidding
criteria and requirements for public procurement of goods, services and public
projects, defining social value as “The additional benefit to society of procuring a
good or service, over and above the direct benefit and value of the good or
service to the procuring entity. Additional benefits may include support for poor
communities or marginalized groups, advancement of human rights and social
justice, protection of the environment, and community development.”
Policy for MSMEs seems to be moving in the right direction. Republic Act
No. 11032 or the Ease of Doing Business and Efficient Government Service
Delivery Act of 2018 has been passed and signed into law and is anticipated to
provide some relief to MSMEs and social enterprises. Republic Act 11057 or the
Personal Property Security Act allows for the expansion of the types of assets
that can be used by MSMEs as collateral when applying for bank loans.
The laws enforced by EEOC makes it unlawful for Federal agencies to
discriminate against employees and job applicants on the bases of race, color,
religion, sex, national origin, disability, or age. Republic Act No.10911- An act
prohibiting discrimination against any individual in employment on account of age
and providing penalties therefor and Title VII of the Civil Rights Act of 1964. Title
VII of the Civil Rights Act, as amended, protects employees and job applicants
from employment discrimination based on race, color, religion, sex and national
origin. Title VII protection covers the full spectrum of employment decisions,
including recruitment, selections, terminations, and other decisions concerning
terms and conditions of employment. It is mandatory for social enterprises to
follow government regulations regarding the way they treat their employees and
their hiring mechanism.
The Philippines has general antitrust laws that prohibit unfair competition,
and arrangements and combinations aimed to restrain trade or prevent by
artificial means free competition in the market. However, the Philippines does not
yet have a comprehensive or well-developed body of antitrust law. The Philippine
Competition Act (PCA) or R.A. 10667 is the primary competition policy of the
Philippines for promoting and protecting a competitive market. It will protect the
well-being of consumers and preserve the efficiency of competition in the
 14

marketplace. The PCA was passed in 2015 after languishing in Congress for 24
years. It is a game changing legislation that is expected to improve consumer
protection and help accelerate investment and job creation in the country,
consistent with the national government’s goal of creating more inclusive
economic growth. Enforcement of this law will help ensure that markets are open
and free, challenging anti-competitive business practices while maintaining an
environment where businesses can compete based on the quality of their work. A
competitive market means a market with multiple buyers and multiple sellers,
driving market prices lower and offering consumers more choices.
The Labor Code of the Philippines stands as the law governing
employment practices and labor relations in the Philippines. It was enacted on
Labor day of 1974 by President Ferdinand Marcos, in the exercise of his then
extant legislative powers. It prescribes the rules for hiring and termination of
private employees. The Labor Code contains several provisions which are
beneficial to labor. It prohibits termination from employment of Private employees
except for just or authorized causes as prescribed in Article 282 to 284 of the
Code. The right to trade union is expressly recognized, as is the right of a union
to insist on a closed shop. Moreover, Philippine jurisprudence has long applied a
rule that any doubts in the interpretation of law, especially the Labor Code, will be
resolved in favor of labor and against management. Employment law is designed
to protect the rights of the employee and covers almost all aspects of the
employer/employee relationship and guarantees a fair and safe work
environment for companies and their employees.
Intellectual property refers to creations of the mind, such as literary and
artistic works, designs, names and images used in commerce and is a valuable
asset for any social enterprise. Intellectual property is protected by law under
copyright, patents, designs and trademarks. Republic Act No. 8293 [An Act
Prescribing the Intellectual Property Code and Establishing the Intellectual
Property Office, Providing for Its Powers and Functions, and for Other Purposes]
otherwise known as the Intellectual Property Code of the Philippines. Adequate
protection of a company's IP is a crucial step in deterring potential infringement
and in turning ideas into business assets with a real market value. IP can
become a valuable business asset if it is legally protected and there is a demand
for the IP related products or services in the marketplace. IP may generate
 15

income for the SME through licensing, sale or commercialization of the IP

products or services that may significantly improve SME’s market share or raise
its profit margin (Idris, 2003).The strategic utilization of IP assets can, therefore,
substantially enhance the competitiveness of SMEs. SMEs should make sure
that they are ready to face the challenge and take measures to exploit their IP
and protect it wherever possible. Like physical assets, IP assets must be
acquired and maintained, accounted for, valued, monitored closely, and
managed carefully in order to extract their full value.
Republic Act No. 11058, An act strengthening compliance with
occupational safety and health standards and providing penalties for violation
thereof. The state shall ensure a safe and healthful workplace for all working
people by affording them full protection against all hazards in the work
environment. It shall ensure that the provisions of the Labor Code of the
Philippines, all domestic laws, and internationally-recognized standards on
occupational safety and health are being fully enforced and complied with by the
employees, and it shall provide penalties for any violation thereof. All workers
shall be appropriately informed by the MSME’s and social enterprises about all
types of hazards in the workplace, and provided access to training and education
on chemical safety and to orientation on data sheets of chemical safety, electrical
safety, mechanical safety, and ergonomic safety.
 16

ROOT CAUSE ANALYSIS

Figure 1. Root Cause Analysis for Unemployment.

Among the identified social issues in the sitio, the group intends to focus on the
unemployment of the residents of Sitio Sab-a, Mandaue which stems from different
causes and problems that contributed to the said issue (shown in Fig. 1). As stated in
the overview of the social problem, different factors play a major role to the social
problem addressed that encompasses poverty; lack of employable skills and education
thus resulting to some residents not having a job, not looking for a job (since they
believe they are incapable of having a job) and for some is to have jobs earning
minimum wage or less; breadwinners and homemakers being institutionalized leaving
their children to neighbors, friends, relatives and family members; members of the
inability to acquire electricity and clean water due to financial situation; poor
environment; passing on of poor mindset and lack of motivation from parents to offspring
thus many children in the sitio does not attend to school because they do not see the
importance as well as they are demotivated with their current situation.
 17

Figure 2. Root Cause Analysis for Excessive Use of single-use plastic as packaging.

Another issue that the group intends to address is the excessive use of single-
use plastic as packaging. Despite Mandaue City’s efforts of banning the use of plastic
bags, plastic waste is still a big issue of the city and this issue is not only limited in the
city but it is a global problem. Knowing that single-use plastic packaging is one of the
biggest contributors of plastic waste, it is still visible in the community’s vicinity (and
other areas). This is also an undertaking that opens doors and encourages sustainable
consumption and production of products, packaging and container.
 18

CHAPTER II:
THE CONCEPT

THE TARGET USERS

The main users identified for the proposed solutions are categorized between the
behavior among B2C consumers, and B2B customers and consumers. The identified
B2B users would be mostly from the HRI industry. B2C consumers are identified to be
generation X and millennial reformers that have a higher education. In terms of gender,
no gender is specified as the product design is general, basic and simplistic that is
usable and may appeal to any gender. Demographically, the group targets millennials
(born within 1980-1996) and those who belong to generation X (born within 1961-1980).
Targeting this segment between this age range is supported by Van Liere and Dunlap
(1981:651–676) that states that younger people tend to openly talk about issues that
concern the environment and a survey conducted by Hitwise shows that consumers
aged 45 or older are more likely to be green consumers. As millennials are conscious
and likely to be involved in endeavors and brands that sustainable and ethical and as for
the Generation Xers, many of those that falls under this generation are educated with
the influence of millennials and of Generation Z which is supported by Brooker stated
that having a child affects environmentalist behaviors (Brooker, 1976:111) which is
supported by Grunert that families with more number of children tend to have more
environmental knowledge and are environmentally conscious in their actions (Grunert,
1993:428-433) and Diamantopoulos et al. (2003: 472). As mentioned, the target users
are those with high education as they acquire further knowledge through their education
levels, their environmental concern also deepen (Shen and Saijo, 2008:293–260) thus
higher educated consumers are likely motivated to buy green products and has more
eco and sustainable purchase behavior (Kheiry and Nakhaei, 2012:176). Berkowitz
and Lutterman (1968) and Hustad and Pessemier (1973) accounts for the level of
education as a factor in terms of environmentalism or green consumption. The target
consumers identified based in the Cross Cultural Consumer Characterization framework
of Young and Rubican are reformers who seek freedom from restrictions, personal
growth, social awareness, value for time, independent judgement, are tolerant of
complexity, anti-materialistic but intolerant of bad taste. They are also curious and
enquiring, supportive of the growth of new product categories, and they select brands for
intrinsic quality, favoring natural simplicity and believe that small is beautiful. The target
 19

users which the group identifies as conscious eco-consumers are among many
consumers all over the world are becoming more involved with the environmental impact
and environmental attributes of their purchases (Darnall, 2008; Perrini, Castaldo, Misani
& Tencati, 2009). Which results in high levels of environmental concerns in terms of
consumer awareness (Peattie & Crane, 2005). This is attributed to them being more
informed about environmental situations and manifesting what they know with their
purchase of green products (Nicole Darnall, Cerys Ponting, Diego A. Vazquez-Brust,
2012).
The proposed product supports the needs of the main users as it is a product
that connects and upholds the moral, ethical and environmental beliefs and values of the
target consumers as to how the pay consume and store items. It also caters to the linear
and unsustainable relationship between consumers and packaging as the packaging
and containers that are conceptualized are made from sustainable and refillable. The
proposed product also aims to meet aesthetic needs of users and gives importance to
practicality and features.

IDEAS TO CONCEPT
Forty percent (40%) of damage in the environment is said to be caused by
consumer household products (Grunert,1995) and the packaging of these products is
heavily responsible for the statistics presented. Various research concludes positive
attitudes of consumers towards protecting the environment and preserving it (Arvola et
al., 2008, Ellen et al., 2006, Liu et al., 2012, Vermeir and Verbeke, 2006). In addition,
consumers demand green products from companies (Bockman et al., 2009, Schmeltz,
2012). With this in mind, the group conceptualized the concept of this project which is
eco-friendly and sustainable containers using natural materials such as bamboo and
coconut shells. Many enterprises also emerged with this particular idea but design wise
the members are focused on its practicality and design aesthetic. As the product the
group proposed are containers, one of the things the group is particular with is the
contents that will be placed in our products by the users. Offering containers without
thinking what would be placed in the containers would eventually result in failure of the
overall concept and goal of the container both from a consumer and seller’s standpoint.
Which is why the group decided to form partnerships with different brands that
consumers can use the products with. With the growth of eco-warriors and the zero-
waste community, a niche but also dedicated circle, many enterprises are emerging
 20

offering products which support the group’s concept. A number of shops sell package
free and refillable products which the proposed concept can influence as the concept is
sustainable household goods packaging and containers. Aside from the main target
users identified, with its aesthetic and purpose a secondary market can be identified. Not
all consumers are technically using the product mainly because it’s made from
sustainable products and eco-friendly. They may also purchase and use the product
because of aesthetic and/or practicality of the design.
Conceptualizing the whole idea of the product revolves from the idea that what
the consumers truly need is the value of the product and the packaging simply supports
its value. An example for this is when consumers purchase shampoo and lotion. The
packaging might affect the consumer’s purchase decision but what the consumer truly
needs is just the shampoo and lotion inside the bottles but once the shampoo and lotion
runs out, most consumers throw the bottles/sachets and buy again but with this kind of
linear consumption, they are contributing more to the prevalent waste problem. The cost
of such goods are higher in the long run despite the cheap price that products sold in
plastics are sold at due to other costs such as the energy costs, environmental costs etc.
The group foresee that since the proposed products are containers, the need of a
particular number of containers and its use would reflect in consumer repurchase of the
said containers. Once consumers purchase the containers, they won’t just keep on
buying containers that they don't need for themselves since they already have enough
containers to store what they need to store and if they repurchase it is commonly bought
for the purpose of gifting or giveaways. The point of the previous statement is that since
the customer already has the product and the product is non-consumable in nature and
designed to be durable and to last a long time, repurchase for the customer’s usage is
unlikely unless if containers are lost, broken, customer actually needs and wants more or
as mentioned earlier, for gifting and giveaways. Which is why spread, customer’s
testimonies and word-of-mouth is important as to keep the concept to thrive, the number
of customers and sales must increase. In addition, to keep the product concept
sustainable, product development, innovation and design for containers is integral. If
successful, the enterprise of the product concept can expand to other lines. As for B2B
clients and bulk orders, the product may be specified, modified or designed based on
client’s needs and requests.
 21

USER EXPERIENCE JOURNEY

The values, morals and practices of the target users may appear inconvenient
and even impractical to other markets. The product concept supports the less
convenient but more ethical and sustainable consumption practices that the target
consumer seeks by making it more accessible to the users. Making green consumption
easier and to support it to align values and morals that target consumers aims and
upholds. The overall concept of bringing different brands and products together that
share the same goal is also essential to make the overall user experience journey more
fruitful and easier by offering sustainable packaging and container options to
complement green consumption, lifestyle and value. Given the current and common
consumption practices and products sold in the market, eco and sustainable products
are relatively niche but are growing all over the world and also in the Philippines. Along
with sustainable consumption, a number of consumers are also leaning towards ethical
and local products. One of the issues that consumers and sellers face is that because
these products are niche, sustainably and ethically made, the production cost and its
price is higher than that of mass-produced plastic/ glass containers which could be
explained by economies of scale. Design wise, the concept product focuses on
practicality, functionality, aesthetic and durability. The design also focuses on other
features such as its weight and appropriate dimensions to make the containers a reliable
and good option for target users. Furthermore, in terms of cleaning the containers, the
conceptualized and idealized design aims to make the containers easy to clean and
most especially make the containers safe and less susceptible from contamination, mold
and others.
 22

CHAPTER III:
PROTOTYPING

THE PROTOTYPE

Figure 3. Storyboard
 23

The whole idea and concept all started and rooted from conducting a community
immersion in Sitio Sab-a, Basak, Mandaue. As the group visited the said community, the
members identified many social problems. The group concluded that the citizens of the
community are suffering from overall poor quality of life but the group focused mainly on
the unemployment of the residents since it is one of the factors that greatly affect their
current standard of living. To be more specific, many citizens are either unemployed or
working under or in minimum wage. Many citizens are unable to afford their electricity
and water bills thus they have no access to these commodities and sometimes steal
water and energy from neighbors. Another prevalent problem in the community is the
population in a household. The number of people in many households in the area cannot
be sustained by the income earned by the household which is why the members of
these households are deprived in terms of daily commodities. These issues also result in
a negative strain in the relationship among members of the household and community.
Furthermore, many of the members of the community are acquitted to crimes such as
drug usage, drug dealing, stealing and other crimes. Education among the members is
also another issue. Many citizens did not have or did not finish their formal education.
The group would also like to stress the environment as it is not a healthy environment
especially for the children as the area is full of hazard (sanitary and safety) as there is an
open canal in the area and there is waste all over the community’s vicinity which is why
the group wants to addressed the plastic waste management of the society as a whole
knowing that single-use plastic packaging is one of the biggest contributors of plastic
waste in the community and other communities. Despite Mandaue City’s effort that bans
the use of plastic bags, plastic waste is still a big issue of the city. Aside from the
environmental impact, this is also an avenue to educate the citizens and to let them see
the importance of discipline.
Therefore, to addressed the certain issues mentioned, the group is proposing a
social enterprise that aims to improve the quality of life of the residents of Barangay
Basak by; helping them acquire employable skills and knowledge because their lack of
employable skills and knowledge reduces their earning potential; providing them
employment to increase the beneficiaries’ purchasing power so that they can provide for
their families and have a better and a more comfortable life than what they currently
have; guiding them to have a holistic life improvement as they face hopelessness and
have a negative mindset towards having a better life since they are only focused on
survival and are only accustomed to their current life since it is imbedded in their culture;
 24

as well as to boost their morale by acknowledging them, involving them and improving
their skills and knowledge that they can be confident about as earning and nurturing
individuals of the community.

And to address the plastic waste management of the society, the products that
the group will is proposing for an establishment of a social enterprise are sustainable
and eco containers/ packaging starting from a range of liquid soap, to lotion shampoo
containers. These containers are made up of bamboo and coconut shells that are
sustainable and eco-friendly that would help lessen the plastic waste of our country and
hopefully reduce the impact of single-use plastic waste. Conceptualizing the prototype
revolves from the idea that what the consumers truly need is the value of the product
and the packaging simply supports its value. Design wise, the concept product focuses
on practicality, functionality, aesthetic and durability. The design also focuses on other
features such as its weight and appropriate dimensions to make the containers a reliable
and good option for target users. Furthermore, in terms of cleaning the containers, the
conceptualized and idealized design aims to make the containers easy to clean and
most especially make the containers safe and less susceptible from contamination, mold
and others.

SOCIAL IMPACT
As mentioned, the proposed solution which is a social enterprise aims to improve
the quality of life of the residents of Barangay Basak by; helping them acquire
employable skills and knowledge because their lack of employable skills and knowledge
reduces their earning potential; providing them employment to increase the beneficiaries’
purchasing power so that they can provide for their families and have a better and a
more comfortable life than what they currently have; guiding them to have a holistic life
improvement as they face hopelessness and have a negative mindset towards having a
better life since they are only focused on survival and are only accustomed to their
current life since it is imbedded in their culture; as well as to boost their morale by
acknowledging them, involving them and improving their skills and knowledge that they
can be confident about as earning and nurturing individuals of the community.
Moreover, the products that the group proposed for a social enterprise are
containers which are made up of bamboo and coconut shells. It is designed to be
durable and long-lasting which will be unlikely for a customer to keep buying them. Thus,
 25

it keeps people from contributing to plastic waste as often as they were used to, at the
same time, reduce the impact of single-use plastic waste. And the fact that there will be
less plastic waste in the landfills, it will be very beneficial to the environment in the long
run. Though the product does not sell convenience and would take time for the people to
turn away from their unpleasant habits, it is another mission for the group to handle. A
mission which is to change their buying behavior. This includes encouraging the market
to be a more conscious consumer who will see that the costs of their new purchase
decisions have lower cost since costs are not computed in the sole price of the purchase
but its impact like energy cost, environmental cost etc.
At the end of the day, customers who will purchase and use the products
supports not only the residents of the community who are given an opportunity to work
and the beneficiary of the social enterprise but as well as the environment—our planet—
that is often neglected by many consumers and producers will also benefit so much from
this undertaking.

THE CONCEPT SYNTHESIS

The number of conscious and green consumers are increasing as awareness
about the environmental issues caused by problematic production, consumption and
disposal practices is growing. Many of those who are or want to practice and engage in
more sustainable endeavors are often challenged with the troubles and scarcity of
ethical and sustainable products in the market. Household products are often packed,
distributed and sold in single use package containers. As the members looked around,
there was a growing number of shops selling refillables and sustainable products along
with its demand. The group saw this as an opportunity to offer packaging and containers
to fill these products while aligning it to the morals and values of sustainability and
ethical sourcing. Furthermore, a close relationship and support amongst the niche of eco
and sustainable shops is evident and in addition, many if not most of these shops are
local SMEs. The whole concept is centered on community, support, growth and
sustainability not only limited in the beneficiary community but also in the marketplace as
well. It is part of the movement that aims to reform irresponsible and destructive
business practices and promote conscious and responsible consumption.
 26

BUSINESS MODEL CANVAS

Figure 4. Business Model Canvas.

Unique Selling Proposition. The enterprise’s unique selling proposition is bringing

people and nature together through stable and sustainable production and consumption
and supporting local communities to better quality of life.

Customer Segment. The customer segment that the enterprise targets are environment
conscious consumers, eco-warriors, hotel and restaurant industry clients, event planners
and event clients, and businesses looking for sustainable packaging and containers for
their products namely shampoo, soap and lotion manufacturers

Customer Relationship. The enterprise will establish its relationship by interacting and
engaging with customers and prospects through contact number, email, website and
through its social media pages.
Channels. The enterprise’s channel will be both virtual (social media, website and other
digital selling platforms) and physical (retail slots and selling in expos and conventions).
 27

Key Activities. The key activities to be done by the enterprise would comprise training
and seminars to improve the mindset and develop the employable skills of its
beneficiaries and potential employees. In addition, checking, monitoring and managing
them and their performance is extremely essential. In the production side, given the
products offered by the enterprise, the key production activities would include
measuring, cutting, sanding, coating, assembling, packaging and the delivery of the
products. Furthermore, it is vital to perform different marketing, operating and financial
activities especially product development initiatives.

Key Resources. The key resource of the enterprise would be intellectual resources
(ideas, data, information, specialty and knowledge), financial resources, human
resources (employees) and physical resources such as raw materials, supplies and
equipment.

Key Partners. The enterprise will be partnering with NGOs to aid in financing and
investing in the proposal. Different NGOs and foundations are looking and investing in
social enterprises. The enterprise will also have a close coordination with the
community’s local government units especially for the foundation of the community
association where the enterprise will be training and hiring the pool of members who are
willing to work for the enterprise. The business will also partner with other enterprises
that is mutually beneficial and supports each other’s cause.

Cost Structure. The enterprise’s cost structure is mainly composed of both its variable
costs as well as its fixed costs. Operating and Production costs such as cost for raw
materials, equipment, supplies, rent, utilities, training, seminars, wages of employees,
other production costs, accounting activities, product development, marketing activities
and investments.

Revenue Streams. The enterprise’s revenue will be coming from product sales.
Investment may be current cost but it is expected to bring more to the enterprise in the
long run to keep the enterprise’s sustainability.
 28

Social Impact. The social impact of the proposed concept is to provide employment by
creating an enterprise that hires the jobless residents of Sitio Sab-a that wants to acquire
skills and be employed. Furthermore, the enterprise will also empower, enrich and uplift
the families of the beneficiaries by helping the beneficiaries realize that there is more to
their life, that they can also dream and have a better life and not just merely survive.
With the enterprise that will provide them employment, encouragement and help the
residents to realize a better life thus the enterprise will develop the community. A portion
of the enterprise's profits will be centered on improving the community’s general concern
by fixing the drainage problem in the sitio and by having other programs to aid the rise of
the community. In addition, the enterprise also supports and only patronize ethical and
sustainable sourcing

Environmental Impact. The environmental impact of this proposal is that it promotes

the reduction of the use of single use plastic and plastic in general as it offers
environmentally friendly and sustainably sourced packaging and container solutions as
opposed to the linear consumption and destructive production of plastic packaging and
containers.
 29

CHAPTER IV:
TECHNICAL FEASIBILITY AND VIABILITY ANALYSIS

CAPABILITIES AND ASSET RESOURCES

a. Capabilities
As a new and starting enterprise, 20-30 number of workers will be
employed as an initial point. Presumably that some of these workers have little to
no skills, the enterprise would team up with TESDA (Technical Education and
Skills Development Authority), a government agency to help potential workers
acquire technical knowledge and develop skills that are related and connected to
the work they will encounter later on. For financial resources, the enterprise will
seek assistance from different government agencies, different NGOs supporting
start-up social enterprise by investing and will apply for bank loans if necessary.

b. Asset/ Resources Needed

There are various resources and assets needed for manufacturing the
proposed product. This includes raw materials, tools for cleaning the raw
materials before processed, machineries used for molding or forming raw
materials into desired designs, tools for painting and varnishing the unfinished
products, and safety clothing and equipment for workers which are specified
below:

❖ Raw Materials
● Bamboo ● Coconut Shell

❖ Tools and Equipments

● Inch steel rule ● Chisels
● Right Angle ● Half round rasp file
● Angle rule ● Flat File
● Measuring Tape ● Knives
● Calipers ● ‘C’ Clamp
● Vernier Caliper ● Hammer
● Marking Gauge ● Brushes
● Compass ● Jig Saw
● Hand Saw ● Paint
● Hand Planer ● Varnis
● Fret Saw
 30

❖ Machineries
● Bamboo radial ●
splitter ● and other machineries used for
● Pillar Drill molding/forming raw bamboos and coconut
● Crosscut saw shells into desired design
❖ Safety Clothing and Equipments for Workers
● Safety Glass ● Hand Gloves
● Mask ● First Aid Kit
● Apron

The product prototype will outsource its needed materials especially the
main raw materials, namely bamboo and coconut shells from suppliers preferably
in Cebu. The group was able to identify a number of bamboo and coconut shell
suppliers in Tabunok, Cebu but were not able to obtain details due to the
enhanced community quarantine imposed by the government due to the
coronavirus pandemic causing their businesses to be closed. As for other
materials needed for manufacturing, all of the equipment can be found and are
readily available in hardwares and shops throughout Cebu City and Mandaue
City. Price-canvassing and supplier evaluation cannot be conducted due to the
limitations imposed upon preparing this paper.

c. Cost requirement.
The accurate estimated project cost requirement for this proposal has not
been calculated given the circumstances in preparing this proposal. Several
factors have to be considered to make an estimated cost requirement for this
proposed project and these factors cannot be determined because the group was
unable to look into the necessary due to unforeseen conditions beyond the
members’ control. The initial source of funding to develop the proposed solution
will be coming from a government loan that supports the establishment of SMEs.
Another possible source of funding would be support from non-government
organizations supporting and investing start-up social enterprises. Loans from
different banks are also being considered as many banks provide loans for
SMEs.
 31

e. External Partnership and Linkages

In building the enterprise, the group would associate and coordinate with
various partners to execute the solution possibly. The enterprise will be
partnering with NGOs to finance and invest in the company. Different NGOs and
foundations are looking and investing in social enterprises. The enterprise will
have a close coordination with the community’s local government unit in hiring
people from the community who are willing to work for the enterprise. The
enterprise will also be partnering with TESDA to help them acquire technical
knowledge and develop skills that are related and connected to the job they will
encounter later on.

PROCESSES
To implement the solution, the initial step to go forward with the proposed
concept is to establish a relationship with the community. To establish trust and respect
that will unite the community and the people responsible for implementing and facilitating
the concept. With this, there will be further understanding and knowledge about the
members of the community and they will also be more involved in the process of
implementing the solution as they will see the intention of the project and how it will
impact them. The second step is to make them understand what the proposal is all about
and from there, the involved community members and the facilitators can further see and
start to work on what they have to especially in helping them acquire employable skills
and knowledge essential for the project that can also be applied in other tasks or
aspects beyond the project. The third step is preparing the structure of the proposal by
putting it up together, developing and innovating. As it is set, the enterprise can start
employing the capable and skilled employees that they have gathered and prepared and
market the products produced. Furthermore, the aim is to improve the quality of life of
the beneficiaries thus it encompasses holistic improvement which is why it is essential
that the activities are leaning towards improving their well-being, increasing their skills
set and knowledge, boosting their morale and influencing them to be better versions of
themselves as individuals and citizens.
In terms of the production process of the proposed product, it starts with the
unloading and storing of raw materials. As raw materials arrive at the production site,
there will be an inventory of materials then it will be stored in the stockroom with care
and be rechecked and itemized preferably by another employee. The bamboo and
 32

coconut shells will be cut according to the size and dimensions needed for the specific
model/ prototype being produced to ensure that the product is uniform. After this, the
bamboo and coconut shells are sanded down to smoothen and even out the product’s
surface. The components are then assembled together and once finished, it is inspected
and once it is within the standard, it is coated with the necessary mix to make it more
polished, durable and easy to clean. Once finished, it is inspected and undergoes quality
control. If it passes the inspection, it is packed and secured with the use of recycled and
sustainable materials to be stored. Finally, it is delivered and sold.

VALUE PROPOSITION TO USERS

Organic Packaging Container is a product concept made for conserving the
environment by reducing plastic production and waste problem. It is an environmentally
friendly and sustainably sourced packaging and container using natural materials such
as bamboo and coconut shells for a solution that is opposed to the linear consumption
and destructive production of plastic packaging and containers. For the proposed
container products, the one thing that the group is focusing on is the contents that will be
placed in the product and also its practicality and design aesthetic. The whole idea of the
product revolves from the idea that what the consumers truly need is the value of the
product and the packaging simply supports its value. Since the proposed products are
containers, the need of a particular number of containers and its use would reflect in
consumer repurchase of the said containers. Once consumers purchase the containers,
they won’t just keep on buying containers that they don't need for themselves since they
already have enough containers to store what they need to store and when they
repurchase it is commonly bought for the purpose of gifting or giveaways. The overall
product concept proposed, supports the less convenient but more ethical and
sustainable consumption practices that the target consumer seeks. Lastly, their
purchase of the proposed product supports the development and growth of the
community of Sitio Sab-a, Barangay Basak, Mandaue City.
Given the current consumption practices and products sold in the market, eco
and sustainable products are relatively growing all over the world and also in the
Philippines. Among the emerging enterprises in the country, The Bamboo Company and
Miss Marian Creative Crafts, are the closest competitors in the market. The Bamboo
Company, Miss Marian Creative Crafts and our enterprise cater the same advocates: to
reduce plastic waste and the use of products that help people adopt an environment-
 33

friendly lifestyle and also focus on sustainability and lessening the dependence on
plastic based products. Also these competitors are producing products made out of
Bamboo and Coconut Shells, which are relatively the same as our proposed concept
product. The competitors' products and our proposed concept product differs from its
design wise since the members are more focused on its practicality, functionality,
aesthetic, convenience and durability of the concept product. The design also focuses
on other features such as its weight and appropriate dimensions to make the containers
a reliable and good option for target users. Furthermore, in terms of cleaning the
containers, the conceptualized and idealized design aims to make the containers easy to
clean and most especially make the containers safe and less susceptible from
contamination, mold and others.

VALUE PROPOSITION TO OTHER STAKEHOLDERS

Customers. The value proposition for customers of the proposed prototype is that it will
give the customers an option that would provide for their needs for containers and fit
their lifestyles while realigning with their values as more environmentally responsible
consumers without compromising the utility as compared to its unsustainable
counterparts.

Employees. The value proposition for the employees would be that helping them
acquire employable skills and knowledge because their lack of employable skills and
knowledge reduces their earning potential; providing them employment to increase the
beneficiaries’ purchasing power so that they can provide for their families and have a
better and a more comfortable life than what they currently have; guiding them to have a
holistic life improvement as they face hopelessness and have a negative mindset
towards having a better life since they are only focused on survival and are only
accustomed to their current life since it is imbedded in their culture; as well as to boost
their morale by acknowledging them, involving them and improving their skills and
knowledge that they can be confident about as earning and nurturing individuals of the
community.

Investors. The value proposition for the investors is that the business will return the
investment of investors, mitigate risks and costs and will continuously innovate and
 34

grow. With this, the business will grow alongside its investors who trust and believe in
the concept.

Suppliers. The value proposition for the suppliers is that the proposed concept would
help support supplier endeavors especially towards sustainable sourcing of goods to
realign with the virtue behind the conceptualization of the proposal and build a
relationship founded in respect, fairness and rapport in terms of trade.

Community. The value proposition for the community would be that the proposed
concept would increase economic activity, teach skills and provide employment, and it
will also address the plastic production and waste management problem of the society.

Government. The value proposition for the government is that government regulations
will be abided. Taxes, and other legal and government obligations will be met. In
addition, ethical and legal practices will be ensured. The concept will also support and
respect government programs.

Partners. The value proposition for the partners would be that the concept would
encourage and support the causes of its partners. Mutual benefits will be shared while
securing the same vision, mission and cause without jeopardizing the principles of the
parties involved.

PRICE AND PAYMENT STRUCTURE

The enterprise will price its products while considering various factors such as
the willingness and capacity of the target consumers to purchase the products rendered
that the business offers, and the prices of raw materials to be utilized, cost of production
and operations. With this in mind, the proposed prototype will be priced using the
following pricing strategies: the cost-based pricing, bundle pricing and psychological
pricing strategies. The proposed payment structure for the product is per piece/unit
pricing for single and individual purchases but discounts will be given for bulk orders.
Lastly, to identify revenue, sales revenue will be computed. Pricing decision of the
product is mainly based on marked up cost and due to the current situation of suppliers
not being able to provide prices of materials, price of the prototype cannot be calculated
and identified.
 35

DISTRIBUTION CHANNELS

For the distribution of the proposed product, two distribution channels are
involved. The channels concerned in the concept are the direct channel (producer-to-
consumer) (refer to Fig. 5) and the retail channel (producer-to-retailer-to-consumer)
(refer to Fig. 6). Manufacturing activities will be mainly done in Barangay Basak,
Mandaue City. The proposed product can be directly sold to the consumers—B2B or
B2C—if transactions involve bulk orders. As for the retail channel, products will be
distributed through various physical retailers and other retail e-commerce platforms as a
form of an intermediary. These retail channels include physical stalls, a website,
Facebook, and Shopee. Consumers can also communicate and transact through email
and phone calls and texts.

Figure 5. Direct Channel

Figure 6. Retail Channel

 36

PROMOTION
For the promotion of the proposed product, social media platforms to will
be heavily used. Nowadays, many individuals as well as business people are
using social media platforms to reach out to their customers and attract the
attention of more consumers / potential customers. Social media advertisement
is a cost-effective way of distributing content and promoting business. Popular
social media platforms such as Facebook, Twitter, LinkedIn and Instagram
provide effective content distribution options to target audiences. Social media is
very useful and important in business as it helps business owners not only to
promote their products to consumers, but also to help businesses increase brand
recognition and sales.
Another type of promotion that will help the enterprise is word of mouth.
Word of mouth is an effective method for an enterprise to spread the word about
a product or service from one customer to another, and with the increasing
advancement in communication through online media, this spontaneous
conversation, in other words, word of mouth, can become much more evident or
effective because with word of mouth, it can be summed up in a single word,
trust. People trust other people and the experiences they have to share, which
means that when they hear about a product or brand from a friend or a customer,
they are more likely to be interested in purchasing a product and this will help the
business develop customer trust and loyalty.
The enterprise also intends to take part in trade shows and exhibits where
the business would promote the brand and its products to potential consumers.
Trade shows and exhibits are a great marketing method in which the business
can connect with consumers directly and can also generate a customer base as
well as the business.
 37

CHAPTER V:
CONCLUSION

Project proposals that support communities through establishing small and

medium enterprises such as the concept being proposed positively impact and develop
the economy as majority of the enterprises are categorized as SMEs especially in
developing communities. This has also opened a lot of opportunities and has generated
a number of jobs. The project proposal, Organic Packaging Containers is a concept
proposed inspired by the vision of improving the quality of life of the residents of Sitio
Sab-a, Barangay Basak, Mandaue City by providing employment opportunities through
and by supporting the community members to acquire employable skill sets and needed
knowledge. Currently, many residents of the area are unemployed and lack the
possession of employable skills to qualify them to have a stable job but a number of the
members of the community want to improve themselves and their lives. The concept
supports and holds on to the residents’ aspirations and convictions by engaging them to
several training, learning and seminar opportunities. Once they are ready, the proposal
then leads to providing these individuals employment which would increase their
household income that will support them to be more stable and secure financially.
Furthermore, as the proposal aims for holistic improvement of the quality of life of the
residents of the Sitio Sab-a, the proposal also hugely emphasizes empowering and
enriching their lives by educating them good values and by encouraging them to grow. In
addition, a portion from the profits from this endeavor will be allocated to community
projects. In addition, the proposal aims to minimize plastic production and waste
problems. The proposed prototype is a container made from either bamboo or coconut
shells that are sustainably sourced as an alternative or a more eco-friendly substitute to
plastic or glass containers that heavily affects the environment negatively in its
production down to disposable while having the same utility. In other words, the
proposed product prototype is an environmentally friendly and sustainably sourced
packaging and container solution that is opposed to the linear consumption and
destructive production of plastic packaging and containers that supports local
communities starting with Sitio Sab-a, Brgy. Basak, Mandaue City.
 38

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focusing-climate-change
 43

APPENDIX A
MAP OF THE COMMUNITY

Barangay Basak, Mandaue City

Sitio Sab-a, Basak, Mandaue City

 44

APPENDIX C
CURRICULUM VITAE

Profile:
My name is Zhanra Therese Arnaiz. I am twenty years old. I
was born on the 6th day of February 2000. I finished my primary
education in Consolacion Central School in 2012. I attended St.
Paul College Foundation Inc. where I completed my junior
highschool and went to University of Cebu where I finished my
senior highschool and graduated. Now, I am currently in my 2nd
year of college, taking up Business Administration majoring
Marketing Management in University of San Carlos.
Studying Business Administration has always been one of my top choices since I
was young. Now that I am on the process of building my career, I am very much excited
knowing that my passion in helping the marginalized is possible through my career. In
my undergraduate program, the students are always thought to not only focus on
maximizing profit but as well as include social and environmental impact to the
community in building business.
I have been exposed to some depressed areas in Cebu and participated in
different community service. The world that we have today where everything in all
aspects has gotten worse and the future seems blurry, a part of me wanted to be an
entrepreneur with a purpose to alleviate the social problems we have faced today.

Personal Information:

Name : Zhanra Therese Arnaiz

Date of Birth : February 6, 2000
Address : Lamac, Consolacion, Cebu
Phone : 0906-323-1526
Email : zhan.arnaiz@gmail.com
 45

Educational Background:
Primary Education
Consolacion Central School
Junior High
St. Paul College Foundation Inc. (2015-2016)
Senior High
University of Cebu (2017-2018)
Tertiary Education
University of San Carlos – Downtown Campus (2018-present)

Trainings /Seminars/Workshop
IMMAP Digital Youth Congress South 2019

Involvement in the Community

School Outreaches and Events
 46

Profile:
My name is Marisa V. Cesiban, 20 years of age. I am a
natural born in the Philippines and currently living in Guadalupe
Cebu City together with my parents and siblings. I have two older
sisters and two older brothers. Currently I am student of University
of San Carlos taking up Business Administration major in Marketing
Management. I always dream of becoming a Flight Attendant but
due to the business of our family, I was forced to take up Marketing
Management but later on I learn to enjoy and love the said
program.I graduated in Grade school with high honor and received
a leadership award in Guadalupe Elementary School and graduated in Junior High with
Honors in Abellana National School.
Seeing the people in my community ruined their life because they can’t sustain
their own needs and their family’s needs, indeed broke my heart. People being forced to
sell their body to have money and people stealing other people’s things to buy their
needs are a big problem in a community. This factor greatly motivates me to become a
social entrepreneur. I will earn profit and at the same time, I will be able to help the
community to be sustainable. Though it will be a short progress in a community but a
little progress is still progress in the community.

Personal Information:
Name : Marisa V. Cesiban
Date of Birth : October 3, 1999
Address : Guadalupe, Cebu City
Phone : 0995-836-0506
Email : cesibanmarisa123@gmail.com
 47

Educational Background:
Primary Education
Guadalupe Elementary School - Guadalupe Cebu City
Junior High
Abellana National School - Osmena Boulevard Cebu City (2015-2016)
Senior High
University of San Carlos – Downtown Campus (2017-2018)
Tertiary Education
University of San Carlos – Downtown Campus (2018-present)

Trainings /Seminars/Workshop
IMMAP Digital Youth Congress South 2019

nvolvement in the Community

School Outreaches and Events
 48

Profile:
My name is Shela Mae S. Gerodias. I am twenty-one years
old and currently studying at University of San Carlos taking up
Business Administration major in Marketing Management. I
graduated Senior High School from Colegio de la Inmaculada
Concepción-Cebu. The reason I chose marketing is that
marketing is a dynamic career choice, which means that
marketing has a lot of job opportunities. Apart from that, this
course will help me develop my skills and abilities that will be
used in the future. I am the youngest and only girl of my 3
brothers in my family. Being a responsible student, I do take care of what is being taught
and what is to learn. I respect my professors, my fellow classmates and everything that
is associated with my school. I also take part in extracurricular activities such as being
part of the SBE pep squad at USC.
The goal I’m currently striving for is to make this world a better place to live in by
starting the changes with myself and by starting to do what is best for the people
especially for the less fortunate people. During junior high school days, I have always
engaged in school activities / events such as feeding programs, free general check-up
programs, tutorial services for children, and giving donations for those affected.
Whenever I've taken part in these activities I feel much happier because it's nice to see
people pleased with our gifts and efforts to help them. This inspires and motivates me to
be a social entrepreneur, where I should continue to help them out.

Personal Information:
Name : Shela Mae S. Gerodias
Date of Birth : April 01, 1999
Address : Newtown Estate, Colorado St., Poblacion Pardon, Cebu
Phone : 0905-2827-134
Email : gerodias142@gmail.com
 49

Educational Background:
Primary Education
Colegio de la Inmaculada Concepción- 45 Gorordo Avenue, Cebu City
Junior High
Colegio de la Inmaculada Concepción - 45 Gorordo Avenue, Cebu
(2015-2016)
Senior High
Colegio de la Inmaculada Concepción - 45 Gorordo Avenue, Cebu
(2017-2018)
Tertiary Education
University of San Carlos – Downtown Campus (2018-present)

Trainings /Seminars/Workshop
IMMAP Digital Youth Congress South 2019

Affiliations/Membership in Organization
School Outreaches and Events
 50

Profile:
My name is Kristine Ann Tambago Muyargas. I was born
on August 13, 1999 in Cebu City. I am currently residing in
Poblacion Ward 4, Minglanilla, Cebu. I completed my primary
education in Saint Thomas Aquinas School Lawaan Montessori
while I graduated my secondary education in the University of San
Carlos – Downtown Campus. I am currently attending the
University of San Carlos – Downtown Campus as I am taking
Bachelor of Science in Business Administration – Major in
Marketing Management.

I have been involved in different community related activities. During my time as

a senior high school student as well as college student, I was sent to different depressed
communities and extended help with the guidance of the university. I was able to see
and reflect with the lives and stories I have witnessed. The suffering and possibilities to
make their lives better motivates me to become a social entrepreneur.

Personal Information:
Name : Kristine Ann T. Muyargas
Date of Birth : August 13, 1999
Address : 776, Poblacion Ward 4, Minglanilla, Cebu
Phone : 0917-1555-397
Email : muyargaskat@gmail.com

Educational Background:
Primary Education
Saint Thomas Aquinas School - Lawaan Montessori
Junior High
Saint Thomas Aquinas School - Lawaan Montessori (2015-2016)
Senior High
University of San Carlos - Downtown Campus (2017-2018)
Tertiary Education
University of San Carlos – Downtown Campus (2018-present)
 51

Profile:
I am Keisha Mae S. Nogaliza, 20 years old. A pure Filipina,
was born and raised in the Northern Province of Cebu, Province of
Carmen. I started my Primary Education at Carmen Central School
in 2006 and finished in 2012. I continued my Secondary Education
at Cebu Academy in 2012 and finished 2016 where I graduated
Junior High School. During my Senior High School year I
transferred to the University of San Carlos under ABM Strand. I am
now a second year college student taking up a Bachelor of Science
in Business Administration Major in Marketing Management still in
the University of San Carlos, Downtown Campus.
My choice of college program is closely relative to my goals and my parents
dream. This goal and dream is to build or have a successful business. I chose to take up
marketing management for I know that the role of marketing is very vital to any business
activities. I foresee being a marketing graduate as a first step into achieving my highest
goal in life. This passion was built for me to live according to my parents' expectations
and dreams, and as a daughter it is my duty to fulfill their dreams in return for what they
have sacrificed for me.
Moreover, growing up as an aspiring businesswoman, the factor that would
motivate me to fulfill my social responsibilities is the poor quality of life in our country.
There’s this some days that I felt so sad every time I saw children or even adults on the
street asking and begging for food. I want to help them by giving them an opportunity to
work, hopefully. I want to help them in a way that they can already sustain their daily
needs and lastly I want to inspire them by making them see or experience that there is a
better world out there for them, if they will just work hard and think for the future.

Personal Background:
Name : Keisha Mae S. Nogaliza
Birthdate : January 12, 2000
Address : Cogon East, Carmen, Cebu
Contact No : 0923-5214-357
Email address : nogalizakeisha18@gmail.com
 52

Educational Background:
Primary Education
Carmen Central School (2011-2012)
Junior High
Cebu Academy, Carmen Cebu (2015-2016)
Senior High
University of San Carlos- Downtown Campus (2017- 2018)
Tertiary Education
University of San Carlos- Downtown Campus (2018- Present)

Trainings /Seminars/Workshop
IMMAP Digital Youth Congress South 2019

Affiliations/Membership in Organization
Campus Ministry Organization
Citizenship Advancement Training-CAT