A Business Plan

for

Eco-Board of Chameleon

Submitted by:

Abueg, Dave Matthew B.

2019101545

Herrera, Francis Gabriel M.

2018100666

Hossain, Shailani B.
2019104116

Judilla, John

Parado, Jacob A.
2017142560

As partial fulfillment of the requirements of

IE103 - B1
TECHNOPRENEURSHIP 101

4th Quarter SY 2020 – 2021

EXECUTIVE SUMMARY

Product Concept

With the continuous development of global warming and other environmental

issues caused to the environment, the idea of Eco-Board came to be with the business’
desire to create a sustainable product without compromising quality. Eco-Board is an
alternative product such as plywood and particle boards. It is made up of
environmentally friendly waste products such as corn cob grits, coconut fibers, small
amounts of wood chips and mud clay.

Value Proposition and Market Positioning

The Eco-board are not just your ordinary wood boards. It is an eco-friendly
alternative with zero formaldehyde and 3 times more moisture resistant than an
ordinary particle board. This means that it is completely fine to use it in spaces that are
moist like kitchen or bathroom. As far as durability is concerned, the eco-board is
superior in durability and quality. All these benefits in a low manufacturing cost.

Business Concept and Model

This business is different from the usual wood board manufacturing business
since our company has a cause and that is to reduce toxic substances that damage the
environment. This business will be run by the owners who founded the company
namely: Dave Abueg, Francis Gabriel Herrera, John Judilla, Jacob Parado, and Shailani
Hossain. The revenue that is gained in this business will be allocated to different
portions in order for the business to continue operating and grow. Some elements that
we will allocate our revenue to are the manufacturing needs, operating needs and
advertising. Advertising will be a big role for this business because it is still new to the
market and exposure to a bigger crowd will help the business to be recognized

Viability and Financial Projections

This business will be attractive to investors since our products have an edge on
other competitors with regards to wood boards. The funding required to operate this
business is Php 15,000,000. Investors will make money with just this starting fund. The
table below shows the profit our business can make in 5 years.

(In PHP) Year 1 Year 2 Year 3 Year 4 Year 5

Sales 59,904,000.00 66,421,555.20 73,648,220.41 81,661,146.79 90,545,879.56
Profit after tax 12,022,739.57 19,528,066.47 21,995,322.16 24,765,267.36 27,874,259.83
Profit Margin 0.64628040 0.64908907 0.65187532 0.65463934 0.65738133
Investment N/A N/A N/A N/A N/A
Employment 14311440 15742584 17316842.4 19048526.64 20953379.3
TABLE OF CONTENTS

I. INTRODUCTION 6
The Business Venture 6
The Company Name 6
Firm Structure 6
Business Model 7
The Product 8
Product Development 8
Value Proposition 8
Product Positioning 9
The Strategy 9
Business Strategy 9
The Goal 10
Key Milestones 11
Competitive Positioning 11

II. MARKETING PLAN 12

Marketing Research 12
Result of the Survey 12
Respondents’ Profile 20
Estimated Margin of Error 22
B. Market Strategy 23
Market Positioning 23
SWOT analysis / TOWS Matrix 23
Marketing Mix 25
Potential Market 26
Target Market 27
C. Sales Strategy 27
Penetrated Market 27
Sales Forecast 28
Sales & Marketing Expense Budget 29

III. OPERATIONS / TECHNICAL PLAN 30

Product Design & Development 30
Product Standards 31
Manufacturing Operations 33
Product Distribution 33
Office, Physical Plant and Warehouse Facilities 34
Business Processes 34
Product Costing 35
Daily production capacity requirement 35
Direct Material cost per unit. 35
Direct Labor cost per unit 36
Indirect Labor cost per unit 36

IV. ORGANIZATIONAL PLAN 39

 Company Name & Logo 39
Legal Form of Business 39
Management Team and Organization Chart 40
Staffing 41
E. Bases and Assumptions (assume a production facility and office will be put up) 42
Land Area and Building Space 42
Land Acquisition and Facility Building 42
Machines & Equipment 43
Furniture & Fixtures 43
Depreciation Schedule 44
F. Selling, General & Administrative Expense Budget 44
Salaries & Wages (of administration personnel only according to item IV.D 45
Employee Benefits 45
Selling & Promotion Expense 45
Depreciation 46
Utilities 46
Insurance & Property Taxes 47
Licenses & Fees 47
Maintenance, Repair & Operating (MRO) Expenses 47
Security Services (outsourced) 47
Janitorial Services (outsourced) 48
Miscellaneous Expenses 48

V. FINANCIAL PLAN 49
A. Investment / Funding Required 49
1. Capital Assets 49
2. Pre-Operating Expenses 49
3. Working Capital 50
4. Cash Requirement 50
B. Key Assumptions 51
1. Economic and Business Factors 51
2. Bases and Schedule of Revenues and Expenses 51
C. 5-Year Financial Projections 53
1. Income Statement 53
2. Cash Flow Projection 53
3. Balance Sheet 54
4. Financial Ratios – profitability analysis, activity analysis, liquidity analysis 54
5. Financial Measures 54

VI. CONCLUSION 55
A. Business Viability & Attractiveness 55
B. Key Success Factors and Sustainability of the Business 55
C. Assessment of Risks 56
D. Overall Schedule 56

APPENDICES 57
References/Bibliography: 58
I. INTRODUCTION
A. The Business Venture
1. The Company Name

The company name is named after an animal identified as Chameleon that lives
in a habitat and is popular for its rare ability to change its skin color. Our company is
inspired by an animal since our company’s product has its vision in contributing to make
the world transition towards a green and sustainable future. A chameleon also
symbolizes stability, insight, patience, determination, perception, curiosity, fearlessness,
and resourcefulness in which our company relates as we stand to exhibit those symbols
through our daily lives. It is defined as having a stable system in our organization despite
any difficulties while keeping the balance in the environment and having a great and
positive insight in everyone’s opinions regardless of their beliefs, culture, race, gender,
sexual orientation, economic, religion, etc.

2. Firm Structure
Our company, Chameleon, is operated by sets of departments that
compose our company. The figure shown below shows the company’s firm structure.
3. Business Model
 B. The Product
1. Product Development
Global warming has a big impact on our ecosystem, most resources are lacking
and hard to find. Our fossil fuels include coal, oil, and natural gas causing a greenhouse
effect. When manufacturing alternatives for particle board and other similar products can
be harmful in some cases.
As a company, we know that our product will help benefit the ecosystem. It can
be manufactured 100% safe for the environment, raw materials are recyclable materials
from corn cobs and coconut fibers. The production will be eco friendly and the result
product will be sturdier, precise product.
With that in mind, we produced eco-board for sturdier and eco-friendly boards for
construction and furniture products. Hardware supplies will have the option to offer a
product that will benefit the community.

2. Value Proposition

“Eco-friendly board”
Plywood and particle board are the same concept as the ecoboard, some
plywoods are cheaper due to their quality and thickness. There are companies that offer
low quality plywoods. Eco boards ensure that you use mother earth friendly quality
products without sacrificing durability and quality. Eco-board give more edge to other
wood boards as the eco-board is 3 times more moisture-resistant than other wood
boards.
 3. Product Positioning

We determine the position of ecoboard in the market based on two factors: price
and quality. Compared to our contenders, our soul product is more affordable and gives
a precise quality for the needs of our customers.

4. Future Developments
Future development of the Eco-board would include the improvement of different
characteristics of the board to ensure the quality of different products that may be
created through the board. Examples of these qualities are fire resistance and improved
insulation and constructive properties.

C. The Strategy
1. Business Strategy
a. Marketing
The marketing strategy of our company for our product is to give it a good image
for the public as the “green alternative” or “good” product. The marketing team will
emphasize the eco-friendliness of our product without sacrificing the durability and
quality of the product. The team will also show the danger that comes with using boards
that come with harmful substances which may lead people to choosing our product.
 b. Operational

In operating the company with a good amount of people, cooperation and

coordination is the key to good results. These good results will reflect on the company’s
service and the product's quality in the long run. That is why incentives will be given to
employees who perform well on their job to boost their morale and also to give other
employees the urge to do more or perform better. Another thing is for the human
resource department to hire employees with a good record in which the company
depends.
Also operations differ on different months of the year, during Jan-Feb, June-July,
Nov-Dec the company will focus on its other source of income which is a contractual
cutting business. There will not be a cost for the machines and personnel since it will be
the same cutting department for the eco-board and the raw materials would be supplied
by our clients. The company chose to do a cutting service because it is aligned with our
business and the indicated months would be where there is a high production cost
according to Monthly log production data from the government, the company sees data
as an opportunity to get it into the cutting business.

c. Financial

This company will not last long if there is a financial strategy for the long term.
That is why our company intends to run our operations thoroughly and with help with
financial strategies. For finance, our strategy is to focus on capital acquisition with
enhanced distribution of profits.

2. The Goal
- To establish a strong and good relationship with the
customers.
- To build a reputation as the most knowledgeable, reliable,
and approachable company they have ever met.
 - To create an application and website wherein customers can
shop and buy without leaving their home.
- To improve the company’s credibility
- To maintain five star rates and positive reviews
- To be known world wide

3. Key Milestones
- Our generation will choose innovative alternatives over
traditional ones, because new generations are willing to
accept innovation and take risks compared to old
generations.
- The prototype will be presented to customers and investors
in the market, it will give them real time comparison of the
alternative products and the eco board.
- We will train employees how to properly operate the
machines, so that precise products will be maintained.
4. Competitive Positioning
- As a new rising company, we are targeting the local
hardwares, construction and furniture companies. With the
help of these companies it can boost our product in the
market.
- Eco board will be selling products locally, for long distance
shipment, orders should be in bulk so that there is no
shipping fee loss.
- As the company grows, we will be offering wholesale and
distributors locally, this is to aim to expand and grow the
business throughout the country.
- In terms of marketing advances, the company will use digital
platforms and will be making lots of demonstration videos
showing how eco boards are sturdier and more reliable in the
market.
II. MARKETING PLAN
A. Marketing Research
1. Result of the Survey

The company conducted a preliminary survey among college students. It is

regulated using Google Forms and everyone can answer once the link has been given.
A total of 341 respondents answered the survey which collected information regarding
their personal information, preference of using eco-friendly products, and awareness of
particle boards.

In the first question, the respondents are asked about their preference of using
eco-friendly or non-eco-friendly products. 97% of the respondents answered that they
rather use eco-friendly products while 2% of the respondents answered that they may
prefer using eco-friendly products rather than non-eco-friendly products. Meanwhile,
none of the respondents answered that they prefer using non-eco-friendly products
compared to eco-friendly products.
 Most of the respondents preferred buying products that are an alternative of
traditional products in return for helping the environment with the result of 96%
respondents answering it. While 4% respondents are not quite sure if they prefer the
said product. Again, none of the respondents answered no, they still prefer buying
products that help the environment.

Out of 341 respondents, 85% of them are giving a thought of how and what the
effect will be on the environment before purchasing a day-to-day product while the
remaining 15% respondents answered that it didn’t occur to their mind the effect on the
product in the environment.
When asked if the respondents do recycling, 77% of the respondents said that they
recycle while the remaining 23% respondents didn't.

In terms of buying, 94% of the respondents considered buying products that are
designed to help the environment. Only 6% have never bought or considered it because
the respondents are not aware of such products.
 The respondents are asked pertaining to their preference in buying things for
themselves, 25% of the respondents answered that they would favor the practicality of
the product, while 23% answered they prefer buying things that are eco-friendly. Another
23% of the respondents stated that they look for the performance of the product before
buying it. In addition to that, as per 20% of the respondents, they prefer a product that
has a pleasing appearance and great style and 7% of the respondents answered they
buy things according to the product’s size. Lastly, the remaining 2% consider the price.
 Majority of the respondents have an object in their house that is made with a
particle board which is 90% of the respondents, while 7% answered they didn’t have any
objects that are related or built with a particle board. Moreover, 3% of the respondents
are not quite sure about where their things at home are made from.

The respondents are asked about the specific things in their home that are made
from particle board, 46% of the respondents answered that their furniture such as
cabinet, desk, chair, etc. are made from particle board, while for the 19%, it is their false
ceilings. The next 12% respondents claimed that their flooring underlayment is created
with the use of the aforementioned product while the 9% is their partitioning or wall
paneling. As of the other 9% of the respondents, they also have things in their home
made from the particle board and that is the core material of their doors, and for the
remaining 5% of the respondents, it is their flooring.
98% of the respondents are open with industrial innovation while a small number of 2%
are not.

The respondents are asked if, would they consider buying the eco-board as an
alternative for the particle board they have been using and seeing and 87% answered
yes while 11% of the respondents are uncertain of buying it but possible. 2% of them
won’t buy an eco-board as an alternative for the popular particle board.
Out of 353 respondents, 45% would buy the eco-board as an alternative to particle
board because they like to help the environment, while 28% of them would buy the said
product because it is cheaper, 26% of the respondents would buy the eco-board
because they like recycled products in contrast with the particle board as well, and only
1% answered it still depends on the durability, what is it specifically made of, and the
price it will be sold.

Half of the respondents are not familiar with the product that’s why they would not buy
the eco-board as an alternative to the particle board while the other half respondents
want to use what is in the market for a long time.
With regards to pricing, ₱600 to ₱1,000 is the expected price of a 4x8 feet eco-board by
64% of the respondents, while the other 17% think that the eco-board costs ₱1,000 to
₱2,000. The other 15% respondents believe that the price is lower compared to the
aforementioned prices, they think it is just around ₱100 to ₱500 and the 2% of the
respondents are expecting that the price is ₱2,000 to ₱4,000. Lastly, the remaining 2%
respondents stated that they cannot say unless the specific content of the board is
specified.
Majority of the respondents are willing to recommend the e-board to their family and
friends while 4% of the respondents are not willing to endorse our product.

2. Respondents’ Profile

This section analyses the various demographic characteristics of the respondents

answered in the survey that has been provided to them through Facebook and
Messenger. The respondents are asked about their name, age, gender, and program.
The results are also presented with the use of graphs for easy visualization.
The age distribution of the respondents who participated in the study is provided
below. The age of the respondents varied from 19 years old to 26 years old. The highest
number of respondents came from the age of 20 years old with 30% participation rate,
next is 21 years old with 24%, then 19 years old with 17%, the fourth to the highest with
the 15% participation is 22 years old, the fifth one is from the age 23 years old with 6%,
the second to the last is from the age 25 years old with a percentage of 4, and the age
that has the lowest participation rate is from 24 years old and 26 years old with a
percentage of 2.
The gender composition of the respondents was 53% male, 36% female, and 11%
stated they prefer not to say.

Majority of the respondents are from the Mechanical Engineering program. The
next majority program that participated in this survey is Electrical Engineering. There are
also from Civil Engineering, Computer Engineering, and Chemical Engineering.
Moreover, 4% of the respondents are from the medical field which is from the Medical
Technology program. And lastly, the number of respondents who participated in
answering the survey from the program AB ELS, Architecture, and Interior design has
the same percentage of 2%.
 3. Estimated Margin of Error

To ensure the credibility and accuracy of our survey results, an estimated margin
of error is computed by the team. The table below shows the division of each sample
size and its estimated margin of error. The population size was obtained from the data
from the Philippines Statistics Authority. For ages 15-19, the estimated margin of error is
computed as 11%. For the ages 20-24, 5% is the estimated margin of error which is the
lowest and for the 25-29 years old is 18% which is the highest. With this data, the
average estimated margin of error is 11.33%.
B. Market Strategy

1. Market Positioning

Most people have been eyeing modern architecture because of its fundamentals
of being clean and simple. This product is perfect for them because our product, eco-
board, offers clarity, good durability, and high utilization rate. It won’t just give the
sophisticated vibe in what they have to do with our eco-board but also it can help
preserve a safe and healthy environment. Chameleon offers an eco-board that by just
simply buying and using it you’ll feel better because you’re doing something remarkable,
pollution and contamination will be lessened, and there’s no need to harm nature by just
doing what you need. Unlike other wood boards, the Eco-board is 3 times moisture
resistant. This means that it is unlikely to crumble or swell when utilized in places that
are commonly wet like kitchen or bathroom. Durability is also one of the buying factor of
this product as people look at eco-friendly and cheap products as “substandard”. The
Eco-board will change how they look at eco-friendly products because the Eco-board’s
durability and quality is superior to that of traditional wood boards like particle boards or
mdf boards.

2. SWOT analysis / TOWS Matrix

Strengths

The strengths of this business includes great product innovation and

straightforward transactions as our company aims to serve our customer or
consumer in the simplest way possible. The products of this business are eco-
friendly for the sake of the nature and health of the customer. Additionally, the
product we offer is good for developing countries as renovations are increasingly
popular these days. This is significant because developing countries' market in
urbanization increases the demand for products like that of what we offer.

Weakness
Every business has a weakness. In our condition, our business’ weakness
is that our brand is still new to the market. This may have led to a small number of
consumers in the first quarter of our operation. This weakness can be easily fixed
by giving a significant amount of effort and resources for the marketing of our
brand. Another weakness of this business is that the volume of demand for our
product depends on the quarter of the year. This is because the demand for
furniture is in the last quarter of the year which makes wood boards demand in
manufacturing these furniture are in the second and third quarter of the year.

Opportunities

Opportunities in this business are things that have the potential to be

improved. In our case, the product that we offer (eco-board) has a big room for
improvement as some research shows that fire resistance in wood boards like
ours can be increased if integrated with compounds like magnesium oxide which
are generally safe. Another opportunity for this business is exposure in social
media because in every social media platform, people share content about
renovation and furniture in their houses.
Threat
The main threat of this business is that people are accustomed to
traditional wood boards like particle boards, mdf boards and plywood which
makes it difficult because there is already an established product for their needs.
Competition is also a threat because there are a lot of manufacturers in the wood
board field.

3. Marketing Mix

Product Highlights

The product we offer is called “Eco-board”. From the name itself, it is an

eco-friendly wood board. It is made from agricultural waste like corn cobs and
coconut fibers which is mixed with mud clay and small amounts of wood chips.
This component removes the need to utilize harmful substances as an adhesive
to stick the contents together. The components when mixed together can create a
wood board that is extremely durable as traditional wood board but more eco-
friendly and 3 times more moisture resistant. The moisture resistance makes it
great for kitchen and bathroom furniture, moldings, wall claddings, and floorings.

Pricing
For the pricing of the Eco-board, the table below shows the price of an 8ft
x 4ft Eco-board in different thickness. The mean average of the price of the board
is Php 800.

Place & Channel

 The Eco-board will be available anywhere in Luzon through hardwares and
deliveries.Consumers will have an option in availing the ecco-board by simply
texting, emailing, or calling us for their orders and they can either pick their orders
up directly from us or have it delivered to them on site. The consumers or
customers can also acquire our product through hardwares where hardware
stores will acquire the eco-board from us through wholesale.

Promotions

For promoting our product (Eco-board), the company will allocate Php
150,000 for the product promotions and marketing. The company will utilize these
resources to promote the product in online platforms like youtube and facebook
through ads. In the following year of our operation, we will be partnering with
renown youtube channels to promote our product to their audience. There will
also be a website dedicated for our company and our product for the consumers
to have an insight on the good features of the Eco-board. Demos will also be
presented to show the durability and other characteristics of the Eco-board like
moisture resistance.

4. Potential Market

The potential market for the Eco-board are furniture manufacturers, home
renovators, hardware stores, and any person who owns a house. The potential
market for this product is promising because building infrastructure or renovation
does not stop unlike products that are just for a specific time. Civilization
continues to build and fix things that are broken, that is why wood boards can be
of help.
 5. Target Market

The target market of our company is specifically the furniture makers and
hardware stores. According to a report conducted by the Centre for Industrial
Studies the furniture sector of the Philippines comprises 15,000 manufacturers
and employment is estimated to be 800,000 workers. Not only did manufacturers
produce furniture for the Filipinos, a portion is also exported to different countries
like the USA, Japan, and China. Government data according to the ECCP
(European Chamber of Commerce of the Philippines) shows woodcraft and
furniture exports reached 1.18 billion in the first eight months of 2011. This only
shows that there is a great potential for the Eco-board to enter this market.

C. Sales Strategy

1. Penetrated Market
In the Philippines the plywood data was disclosed at 130.000 cubic
meter in 2017. This records a lessening from the past number of 152.000
Cub m th for 2016. Philippines Production: Annual: Plywood information is
refreshed yearly, averaging 318.500 Cub m th from Dec 1976 to 2017, with
42 perceptions. The information arrived at a record-breaking high of
553.000 Cub m th in 1980 and a record low of 130.000 Cub m th in 2017.
The team will share the company’s in-the-shop process of making
the boards. We will be transparent with the customers so that we will be
able to get their loyalty more. The price of our product will be almost similar
to the competitors, ensuring the best quality they can get with the price.
Having loyal customers we will attract more by conducting demonstrations
or having stress tests with the product.
 2. Sales Forecast
The statements and values shown below are only predicted values
only and should not be seen as assured values. These may also be
subjected to sudden changes, although these are predictions done on the
basis of the seasonal demand of the product, thus, making them
reasonable.

Eco-board Sales and Marketing Expenses Budget

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Expense Budget: 15,000,000.00 24926490.55 34,528,066.47 36,995,322.16 39,765,267.36

Raw Material costs 21,189,218.67 23,308,049.76 25,638,763.24 28,202,547.33 31,022,709.09

Salaries, Wages and

Benefits 14,311,440.00 15,742,584.00 17,316,842.40 19,048,526.64 20,953,379.30

Advertising 75,000.00 40,000.00 56,500.00 119,650.00 139,615.00

Websites 25,000 25,000 25,000 10,000 20,000

Promotion 25,00 50,000 50,000 20,000 10,000

Research and 50,000 50,000 50,000 50,000 50,000

development

3. Sales & Marketing Expense Budget

Deals and advertising costs comprises available and shopper
publicizing, showcasing related compensations, promoting research and
other counseling expenses and costs identified with deals and showcasing.
III. OPERATIONS / TECHNICAL PLAN
A. Product Design & Development
B. Product Standards
 The Eco-Board would be cut into a Length of 8ft and width of 4ft this is the
standard for particle boards. The thickness comes with 10 variations
(2mm,4mm,6mm,8mm,10mm,12mm,15mm,18mm,25mm,30mm, and 35mm) the group
decided on this also based on the standard of the particle board while retaining its
length and width that would be the size options for the eco-board.
C. Manufacturing Operations

The raw materials such as corn cob grits, coconut fiber, and wood chips will
be prepared to be loaded on the dryer to make sure that the materials have a
uniform humidity level. After drying the raw materials, it will be fed into the
mixer with the mud clay to combine the materials. After mixing all the
materials, it will be distributed into the molder and the hot presser does the
job in eliminating the air and making the board compact. When it is molded, it
will rest for about 30 minutes to cool down. When it is done cooling, it will be
cut depending on the demand and the product will be ready for quality check
and packing.

D. Product Distribution

The finalization would be the quality control of the product the company
would a lot a team for checking the quality of each material and inspect the
dimension the same team would also be the packaging department the
packing would be easy since the boards could be stacked but the company
would place Styrofoam to the edge of each side to ensure that there would
not be damages or cracks in the board while transporting.

All would be tied down using a PP Strap Plastic strap 15mm (2 Kilos) that
costs 250 each; this is for even distribution and to avoid damage on the
board. The company would hire a distributing company to transport the
 Finished Eco-Boards from the warehouse to stores such as (woodshops,
department stores, and hardware’s) the company is also accepting special
Orders from other companies and personal orders.

E. Office, Physical Plant and Warehouse Facilities

The physical plant, warehouse and office would be under the same roof.
The warehouse has an office room that comes with its 500 sqm of warehouse
space with a monthly rent of 90,000 per month, it also comes with available
parking spaces, gated w/ Security, near the port, High ceiling and for storage.

F. Business Processes

The company would purchase the raw materials from local farmers along
with other materials necessary to be purchased from online sellers. After
gathering the material the company will deliver it to the warehouse. When the
raw materials arrive at the warehouse they are kept there. The company will
use the necessary raw materials for production; they would all be automated
and from there they would be dried and mixed. after that they would be
molded and pressed to finish the process. They would be cooled down then
they would be delivered to the cutting section that is also inside the
warehouse. for finalization and preparation for delivery they would be sent to
the quality control for inspection if the products are market worthy. After
inspection they would be then stacked and packed to be delivered ready.
Then for distribution they could be delivered to our contractors directly to their
warehouse or preferred location but most of the delivery will be to hardwares
if the products don't sell they could be sent on the hardware warehouse of the
hardware and if they are sold then the customer will directly receive it .The
business process flow chart is shown in the figure below:
G. Product Costing

1. Daily production capacity requirement

sales units

Annual 149,760

Semi Annual 74,880

Sales Monthly 12,480

Daily (8 Cycles/day) 480

Units per Cycle 60

2. Direct Material cost per unit.

Corn Cob Grits (in lbs) ₱ 4,787.50

Coconut Fiber (in lbs) ₱ 8,525.00

Wood Chips (in lbs) ₱ 2,812.50

Mud Clay (in lbs) ₱768.75

 Styrofoam ₱84.00

PP Strap Plastic strap 15mm ₱74.00

Total per 60 units

₱17,051.75

Total Per unit

₱284.20

3. Direct Labor cost per unit

Personnel Daily No. of Total wage Wage per

wage personnel per day DPCR

Material ₱700 3 ₱2100 ₱4.38

Procurement

Drying ₱600 3 ₱1800 ₱3.75

Mixing ₱600 3 ₱1800 ₱3.75

Molding ₱600 3 ₱1800 ₱3.75

Pressing ₱600 4 ₱2400 ₱5

Cooling ₱600 3 ₱1800 ₱3.75

Cutting ₱600 3 ₱1800 ₱3.75

Packaging ₱540 4 ₱2160 ₱4.5

Delivery ₱500 2 ₱1000 ₱2.08

Total: ₱34.71

4. Indirect Labor cost per unit

Personnel Daily No. of Total Wage per

Wage Personnel Wage Per DPCR
 Day

Production ₱1760 4 ₱7040 ₱14.67

Supervisor

Quality ₱600 2 ₱1200 ₱2.5

Inspector

Machine ₱680 1 ₱680 ₱1.42

Maintenanc
e

Advertisem ₱720 2 ₱1440 ₱3

ent

President ₱2280 1 ₱2280 ₱4.75

Vice ₱2000 4 ₱4000 ₱8.33

President

Janitorial ₱550 3 ₱1650 ₱3.43

Security ₱640 3 ₱1920 ₱4

Accounting ₱1000 1 ₱1000 ₱2.08

Employers ₱1600 5 ₱8000 ₱16.67

Total: ₱60.85

Other Indirect Cost

Indirect Cost Cost Per Cost per Day Cost Per

month DCPR

Utilities ₱178161.88 ₱6852.43 ₱14.28

(Power and
communicati
on)

water ₱10000 ₱384.61 ₱0.8

Petroleum ₱2600 ₱100 ₱0.21

(Gas)

Total: ₱15.29

Total cost
Costs Unit Cost

Indirect Labor Cost ₱60.85

Other indirect Cost ₱15.29

Total Indirect Cost ₱76.14

Direct and Indirect Cost ₱110.85

IV. ORGANIZATIONAL PLAN
A. Company Name & Logo

The company's logo, which features a chameleon, represents the many

traits its workers display on a daily basis, including patience, determination,
curiosity, and inventiveness. Green and blue colors are used to symbolize the
environment the organization is trying to maintain while utilizing natural
resources. Red is used in the logo to indicate the product's intensity, as well
as the dedication and drive with which the corporation goes about its work on
the manufacturing of the product. When seen as a representation of a
company that is producing great eco-friendly and high-quality products, the
star's image is one of excellence and success. The design concept gives the
image of all the organization could offer to all of its customers.

B. Legal Form of Business

The Chameleon intends to get a limited liability company (LLC) license in

order to benefit from the advantages of both the partnership and corporation
types of business. A limited liability corporation allows earnings and losses to
be passed to the owners without the business itself being subject to taxation,
while also restricting the responsibility of the firm's workers and owners
against any possible legal liabilities. Dave Matthew Abueg, Francis Gabriel
Herrera, Shailani Hossain, John Judilla, and Jacob Parado are the company's
owners
C. Management Team and Organization Chart
People that have spent their whole lives in the Philippine board
manufacturing sector and have acquired significant knowledge and expertise
as long-term workers will make up the company's executive management
team. All levels of the organization will be staffed with experienced and
credible qualified personnel, with the majority of those hired having worked
across various business lines. Below is a list of the key personnel:

● The President will be the driving force behind the company, ensuring its
success, assembling the necessary resources, and bringing the product to
market.
● The Vice Presidents handle the supervisors in different areas to make sure
the business is running smoothly with alignment.
● The Supervisor of Administration is responsible for the organization's
financial operations, including funding, usage, accounting, payments, risk
assessment, and anything else involving money.
● The Supervisor of Marketing is accountable for all areas of marketing and
promotion of the product.
● The Supervisor of Production must have expertise and experience in the
board manufacturing sector.
● The Supervisor of Operations is accountable for the smooth running of the
firm, he or she must have a thorough understanding of the intricacies of
the business.
● The Finance is responsible for acquiring funds for the firm, managing funds
within the firm, and planning for the expenditure of funds on various
assets.
● The Accountant is responsible for keeping and interpreting financial
records.
● Product Marketing and Promotions aim to maximise profits through
developing sales strategies that match customer requirements and by
promoting products, services or ideas.
● The Sales are responsible for communicating the benefits of a company's
products in order to drive sales.
● The Quality Control is responsible for ensuring that goods are delivered
effectively and via the appropriate channels.
● The Sanitary design and direct the construction and operation of hygienic
projects such as waterworks, sewage, garbage, and trash disposal plants.
● The Security is the who is responsible for securing premises and
personnel by patrolling property; monitoring surveillance equipment;
inspecting buildings, equipment, and access points; permitting entry.
 ● The Manufacturer is responsible for implementing and operating the
production system in order to produce the product.
● The Research and Development includes activities that companies
undertake to innovate and introduce new products and services.
● The Distributor plays a vital part in keeping the lines between
manufacturers and users operating smoothly.

D. Staffing

Position No. of Monthly Annual 5-Year

Personnel Salary Salary Salary

President 1 ₱59280 ₱711360 ₱3556800

Vice 2 ₱104000 ₱1248000 ₱6240000

President

Supervisor 4 ₱183040 ₱2196480 ₱10982400

Finance 1 ₱26000 ₱312000 ₱1560000

Accountant 1 ₱26000 ₱312000 ₱1560000

Product 2 ₱37440 ₱449280 ₱2246400

Marketing
and
Promotions
 Sales 1 ₱26000 ₱312000 ₱1560000

Quality 3 ₱48880 ₱586560 ₱2932800

Control

Sanitary 3 ₱42900 ₱514800 ₱2574000

Security 3 ₱49920 ₱599040 ₱2995200

Manufactur 26 ₱407160 ₱4885920 ₱24429600

er

Other 6 ₱234000 ₱2808000 ₱14040000

Employees

E. Bases and Assumptions (assume a production facility and office

will be put up)

1. Land Area and Building Space

a) Manufacturing Area – determine machine area, raw material
staging area, WIP space and FG staging area of the production
line; compute space for aisles, locker & rest rooms, material
warehouse & FG storage areas, support equipment and
maintenance areas (draw the production layout with dimensions
and area location)
b) Administration & Office Area – based on item IV.C, determine office
area with rooms, cubicles or table space provisions and the other
service areas for pantry / canteen, restrooms and the like (draw the
office layout with dimensions and location of tables, A/C units
c) Building Size – based on items IV.E.1a and IV.E.1b
d) Land Area – building area plus space for parking, driveway, and
future expansion

2. Land Acquisition and Facility Building

Location: Davao del Sur

Cost of land: (Urban Residential)
- 500 sqm. X Php 7,000 = Php 3, 500, 000
Perimeter Fence:
- 350 sqm. X Php 5,500 = Php 1, 925, 000
Cost of building construction: (1 Floor only)
- 400 sqm. X Php 15, 000 = Php 6, 000, 000
Interior Design & Fit- out:
 - 400 sqm. X Php 1,000 = Php 400, 000

3. Machines & Equipment

- 1650 Electric Saw 7 in 1 Electric Circular Saw

- Lamps UV dryer
- Industrial Mixer (SS 316-304)
- Galvanized Glazed Metal Roof Sheet Roll Forming Machine
- Hot Press Machine
- Cooling Machine

Cost of Installation = ₱12, 500 per installation

Cost of Acquisition = ₱ 6,941,194.72
Cost of Initial Operation = ₱ 857,244.40

4. Furniture & Fixtures

Chairs per unit

For office
Brand: Olaf Sc 033Ga Office Chair
Price: ₱2,795.00
For conference room
Brand:VC1100 VISITOR’S CHAIR
Price:₱1,450.00
For break room
Brand: 9022 STACKABLE CHAIR
Price: ₱850.00

Table per unit

For office
Brand: Paydin Hapi-Jarlie Office Table
Price: ₱6,995.00
For conference room
Brand: NYC CONFERENCE TABLE
Price: ₱15,950.00
For break room
Brand: Lifetime Table 6Ft F/H White
Price: ₱4,000

Printer
Brand: Canon Pixma G4010 AIO Wi-Fi w/ ADF Scanner
Printer
Price: ₱ 13,850.00
Air Conditioner
Brand: CARRIER FP53CGF009308-1 Split Type Aircon 1HP
INDOOR
Price: ₱28,700.00

Ventilation
Brand: Stainless Steel Automatic Shutter Roof Mounted Air
Cooling Greenhouse Exhaust Ducted Axial Fans
Price: ₱5,328.69

Fan
Brand: MAMMOTH PMSM HVLS Ceiling Fan 24 ft.
Price:₱398,000 PHP
Lights
Brand: Linear high bay light 100W
Price: ₱3016.24

Brand: SLIM DOWNLIGHT ZIGMA SL LED 2106P-MBY4-DL

6W DL RECESSED ROUND
Price: ₱215.00

5. Depreciation Schedule

a)Land & Building

Total Cost: ₱6,425,000 / 15 years = ₱428,333.333

b)Machines & Equipment

Total Cost: ₱7,810,939.12 / 10 years = ₱7,810,93.912

c) Furniture & Fixtures

Total Cost: ₱472,194.93 / 5 years = ₱94,438.986

F. Selling, General & Administrative Expense Budget

1. Salaries & Wages (of administration personnel only according to

item IV.D

Expenses Average Cost

Administrative Salaries ₱415,5840

 Marketing Salaries ₱624,000

Production Salaries ₱5,987,280

Operation Salaries ₱1,113,840

2. Employee Benefits

The material below shows the additional benefits that regular

employees at the company will be able to enjoy in addition to their
salary. Offering benefits to workers is essential because it
demonstrates to them that the business cares about their general
health as well as their future.

Types of Benefits Average Cost

Insurance ₱10,000

Medical Allowance ₱10,000

13th Month Pay Depends on the Salary

Maternity Leave ₱20,000

Loan ₱30,000

Overtime pay Depends on the Salary

Holiday pay Depends on the Salary

Back pay / Retirement Pay Depends on the Salary

3. Selling & Promotion Expense

The table below summarizes the company's costs associated with

marketing and advertising its goods. Due to the fact that both the
business and the product are new to the market, selling and
promotional costs must be addressed. Additionally, the target must be
correctly defined for the short and long term in order to get constant
information about the product marketing.

Promotion type Cost

Social Media Advertisement ₱30,000

 Brochure/ Flyers/ Newspaper ₱20,000

Television and Radio ₱70,000

Advertisement

Billboard advertisement ₱30,000

4. Depreciation

The business concentrates on the manufacture of Eco-Boards,

depreciation costs are associated with all of the company's resources,
particularly the machines and other equipment used in the creation of
the company's goods. As we strive to utilize all of the equipment in our
manufacturing, the business anticipates minimal depreciation
expenses. As a new business, a depreciation cost of 6,816,979.97
pesos would not have a significant effect on the company's expenses.
As the business develops, so will the anticipated depreciation costs,
but with appropriate resource allocation, the company will be able to
overcome these expenditures in order to produce maximum income.

5. Utilities

The table below summarizes the company's utility costs. The costs
listed below vary according to how the company's utilities and
resources are used.

Utilities Average Cost

Warehouse Rental ₱90,000

Utilities (Power and ₱178161.88

Communication)

Water ₱10000

Petroleum (Gas) ₱2600

6. Insurance & Property Taxes

As responsible company owners, we owe it to our customers

to pay our insurance costs and taxes on real estate. With all of the
characteristics discussed before in this article, Insurance for both
workers and property is a significant consideration for the business.
Our business wants to offer additional insurance to its workers. as
 an additional bonus to their wages. Additionally, the business
emphasizes the need of property insurance. would be
advantageous for the business, particularly in the event of
unexpected circumstances. Apart from insurance, the business
wishes to satisfy its obligation to pay taxes, including property taxes
on all properties. All aspects of the business are adequately
recorded and presented in respect to conditions established by the
Internal Revenue Service. Taking all of this into consideration, the
firm estimates a cost of ₱550,000 for insurance and real estate
taxes.

7. Licenses & Fees

● Business Permit - ₱2,000
● Barangay Clearance - ₱1,000
● DTI Permit - ₱2,000

8. Maintenance, Repair & Operating (MRO) Expenses

● Utility - ₱38,163.84
● Machine Maintenance - ₱212,160.84
● Supplies - ₱20,000.00

9. Security Services (outsourced)

Personnel No. of Personnel Daily Wage

Office 1 ₱640

Work Area 2 ₱640

10. Janitorial Services (outsourced)

Personnel No. of Personnel Daily Wage

Office 1 ₱550

Work Area 2 ₱550

11. Miscellaneous Expenses
According to the company's records, there are currently no
Miscellaneous Expenses associated with it.
V. FINANCIAL PLAN

A. Investment / Funding Required

1. Capital Assets

Current Assets PHP

Rent of Land ₱90,000

Machines ₱6,816,979.97

Equipment ₱1,618,556.67

Total Assets ₱ 8,525,536.64

2. Pre-Operating Expenses

Expenses PHP

Legal Requirements ₱10,000

Hiring Expenses ₱25,000

Permits ₱7,000

Total ₱42,000

3. Working Capital

Expenses (6 months) PHP

 Cost of Goods ₱10,994,968.40

General Expenses ₱7,751,411.28

Administrative Expenses ₱1,404,000

Total ₱20,150,379.68

4. Cash Requirement

PHP

Cash for Initial Operations ₱ 7,798,439.12

Beginning Cash on Hand ₱15,000,000

Total ₱ 22,798,439.12

B. Key Assumptions

1. Economic and Business Factors

Rate/Year 1 2 3 4 5

Interest Rate 2.25% 2.50% 2.75% 3.00% 2.75%

Inflation Rate 3.40% 2.96% 3% 3% 3%

Growth Rate 4.50% 5.50% 6.50% 6.00% 6.75%

 2. Bases and Schedule of Revenues and Expenses

Year

Sales Growth
Revenue Rate 1 2 3 4 5

Quantity
(in units) 10% ₱74880 ₱82368 ₱90604.8 ₱99665.28 ₱109631.808

Price
(Php/Unit) 0.80% ₱800 ₱806.40 ₱812.85 ₱819.35 ₱825.91

Operating Growth
Costs Rate Year

1 2 3 4 5

Salaries & ₱20427229.6

Wages 10% ₱15347280 ₱16882008 ₱18570208.8 8 ₱22469952.65

Selling &
Promotion 10% ₱150,000.00 ₱165000 ₱181500 ₱199650 ₱219615

₱24680579.1 ₱27148637.0
Utilities 10% ₱20397172.84 ₱22436890.12 3 5 ₱29863500.75
Total ₱43432287.9 ₱47775516.7
Costs ₱35894452.84 ₱39483898.12 3 3 ₱52553068.4
C. 5-Year Financial Projections

1. Income Statement

2. Cash Flow Projection

 3. Balance Sheet

4. Financial Ratios – profitability analysis, activity analysis, liquidity

analysis

5. Financial Measures
VI. CONCLUSION
A. Business Viability & Attractiveness
The Furniture Industry, which produces plywood and other similar products, has
been present in the market for a significant period already. As time progresses, new
developments are made which in turn produces new products. One of these products is
ours, which is the Eco-Board. Considering all the analysis that was done, it is safe to
assume that our business is viable and attractive to our target market. Following our
marketing plan, it has shown that our product was received favorably by the majority
despite it being a new product with plenty of competitors. Another proof of our product
being viable is the market forecasting in which it has shown that even though there are
only seasons that our product will be in high demand, our business will still profit.
Our product is also very attractive even as our product is generally better
than our competitors, with the single flaw of being heavier. With the continuous use of
wood used for furniture making, horse repairs and construction of buildings that use
wood, resources are slowly running out such as wood. This is why our product shines as
it is generally cheaper and sustainable without compromising the quality of our product’s
performance. Investors might also be attracted to our offer as our market forecasting
has shown favorable results of profit.
B. Key Success Factors and Sustainability of the Business
Marketing strategies
The primary requirement before starting any business is to employ
effective marketing strategies. It is important to know who you target market is as having
too little of a target may not generate enough profit while having a target market that is
too large might not make your products catered enough for them. Employing effective
advertisement is also required as new products can easily be overshadowed by existing
competition, thus, it is imperative to be able to transmit your ideas to the customers.

Quality of Products
It is important to always perform quality checks on the products produced
so that there will only be little to no error to occur. Doing so will earn the trust of
customers, generating more sales and profit.
Innovativeness
Innovativeness is also a requirement as everything is developing quicker
and quicker, which is why it is important to allocate funds for development and research
as our competitors will also be doing the same. This means that we cannot become
complacent and continuously improve or develop new products for us to sell without
compromising the quality of the products.

C. Assessment of Risks
The business raw materials would be gathered from local farmers in such case
natural calamity occurs and the production of the raw material could be compromised.
The products are dependent on the sales forecast and could not be sold all year round.
The product itself is not waterproof but it is water resistant if in the case it is submerged
in water for a long time the product would be damaged. Another note is the heaviness of
the product; this could be incontinence to the customer. The price of the product is on
the cheaper end in terms of its competitors this could be seen in a negative quotation as
the board could be cheap because its low quality the company will advertise itself in
order to convince our customers that our product is cheaper and more durable than its
competitors.
D. Overall Schedule
The incorporation of the business venture will start 6 months before the
machine installation; in this the company will contact involved figures in order to
order necessary materials and machines and close deals among them. During
these 6 months the company will also hire necessary personnel that will be
involved in the production. In this 6 months the company will also close a deal to
get rental for the warehouse. The production date will start 2 months after the
installation of machines and prototype testing and other warehouse modifications.
On the third month after the installation will be the first sale of the product.
APPENDICES
References/Bibliography:

Ceicdata.com. 2021. Philippines | Forest Product Statistics | CEIC. [online] Available at:
<https://www.ceicdata.com/en/philippines/forest-product-statistics> [Accessed 29 July 2021].