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ORGANIC BLENDS

Joana Marie V. Bartolome

Rhea Anne D. Agagad
Mary Kristine S. Alido
Jennifer S. Manulat
Jonalyn L. Molina

An enterprise development project manuscript submitted to the Faculty of Cavite

State University- Tanza Campus, Tanza, Cavite in partial fulfillment of the
requirements for the degree of Bachelor of Science in Business Administration
major in Marketing Management with Contribution No.. Prepared under the
supervision of Prof Ritch M. Banate.

INTRODUCTION

Organic Blends is a refreshing and healthy drink that delivers the natural

goodness of fruits and vegetables in a convenient and delicious package. Organic

Blends is an organic juice that is good for our bodies. Organic juice in the Philippines

has gained significant attention and popularity among health-conscious individuals

since the pandemic hit. Overall, compared to non-organic products, organic fruits and

vegetables contain a greater quantity of dry matter and phenolic compounds while

containing less nitrate, heavy metals, and pesticide residues. One of the most

important determinants of the quality of the final beverage is the optimal level of

maturity of the raw material. In order to maintain the nutritional value of the juice,

refining must be kept to a minimum while ensuring food safety (Borghoff, 2023).

Another health concern that organic blends may address is the presence of

artificial additives and preservatives. Many commercially produced juices contain

added sugars, high fructose corn syrup, and artificial flavors and colors, which can

have detrimental effects on health. Organic blends, on the other hand, are made with

minimal processing and typically do not contain any added sugars or artificial additive
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This ensures that consumers are getting a purer and more natural form

of juice, which can contribute to overall well-being. Organic blends may also help

address digestion-related health concerns. Organic fruits and vegetables,

particularly those used to make juice, are often higher in fiber content compared to

their conventional counterparts. Fiber plays a crucial role in digestion by promoting

regular bowel movements and preventing constipation. By consuming organic

blends, individuals can increase their fiber intake, thus improving digestion and

supporting a healthy gut.

Nature of the Project

The enterprise of Organic Blends is a company that specializes in producing

and selling a wide range of organic products. Their primary focus is creating blends

of organic ingredients to provide customers with high-quality, natural products

promoting health and well-being

It sources ingredients from organic farms and suppliers that follow sustainable

and environmentally friendly practices. They prioritize using ingredients free from

synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). This

commitment to organic sourcing ensures that their products benefit consumers'

health.

The product range of the organic blends enterprise includes various items such as

herbal teas, spice mixes, culinary blends, wellness supplements, and beauty

products. Each product is carefully formulated to combine the finest organic

ingredients in harmonious combinations that offer unique flavors, aromas, and health

benefits.

The enterprise of organic blends strongly emphasizes quality and strives to

maintain the highest standards throughout its production process. They conduct

rigorous testing and quality control measures to ensure that their products meet or

exceed organic certification requirements and adhere to strict safety and purity
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standards.

In addition to providing customers with exceptional organic products, the

enterprise of organic blends is committed to educating consumers about the benefits

of organic living. They may offer educational resources, workshops, or online content

to raise awareness about the importance of organic choices and how they can

positively impact personal health and the environment.

Overall, the enterprise of organic blends aims to offer a range of organic

products that cater to the growing demand for natural and sustainable options. By

prioritizing organic sourcing, quality, and customer education, they strive to contribute

to the well- being of individuals and the planet positively.

Overall, this project aims to develop and launch a new line of organic juices

that aligns with consumer demands for healthy and sustainable products, while also

achieving business growth and profitability in the organic juices market. Also, the

production area was in Blk 11 Lot 18 Santol Corner Bayabas, Meadwood Executive

Village Pf Espiritu 8, Bacoor, Cavite.

Organic Blends specializes in producing and selling a wide range of organic

products in the industry. The primary focus is creating blends of organic ingredients

to provide customers with high-quality, natural products, promoting health and well-

being. The company of Organic Blends operates as a partnership with five

proprietors working together to run the business.

The letter O and B in the logo means Organic Blends, which means naturally

mixed hand by hand without using mixing machinery. With a match of minimal design

that signifies Nature and Happiness. Moreover, the overall content and style of the

logo also depicts the product they offer, modernly designed eco-friendly Polyethylene

terephthalate (PET) bottles to ensure the safety of Nature and the Health of human

beings.
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Figure 1. Logo of Organic Blends

Objectives of the Project

The proponents decided to conduct an entrepreneurial development project

to experience how to handle and make the business profitable using their skills and

knowledge as a marketer.

Specifically, it aimed to:

1. introduce and make organic juice known to the market;

2. identify the process of producing organic juice made from fruits and

vegetables;

3. determine the profitability and marketability of the organic juice

business; and

4. apply necessary solution to the problems encountered during the

business operation.

Vision

To be a leading natural juice alternative and position in the market with strong

customer service and innovative products of excellent quality and outstanding health

advantages, to become one of the top healthy juices in the market trends Philippines

in the next 5 years.

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Mission

Develop, manufacture, and sell organic beverages made from fruit and

vegetable juices that have no additives or preservatives, to provide the consumer

with well-being, health, and outstanding service, resulting in higher satisfaction and a

strong market position.

Time and Place of the Project

The business operates for 88 days, from September 25 to December 22,

2023. The physical store is located at Main Square Bacoor, Cavite. The site was

chosen because of its accessibility to entrepreneurs and the availability of the

working area, the production activities would start at 8:00 A.M. to 7:30 P.M. from

Monday to Friday. This project had a duration of 2 months, specially from November

to December.
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Figure 2. Location of the physical store

DESCRIPTION OF THE ENTERPRISE

Layout of the Project

The production area measured 100cm in Length, 55 cm in Width, and 90cm

in height. which was divided into four sections: the packaging area, where the

packaging materials were placed in a cabinet; the cooking area to make the product;

the washing area; and the office area at the center, wherein the proponents

discussed the flow of making the product and inventory. The good facility layout

shows the presentable flow of work and raw materials. Figure 4 shows the production

line of the project, wherein the production process takes place.

55cm
110cm

90cm

Figure 3. Production layout

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Figure 4. Actual food

cart

Organization Management

Good management aims to provide services to the community appropriately,

efficiently, equitably, and sustainably. This can only be achieved if essential

resources for service provision, including human resources, finances, hardware, and

process aspects of care delivery, are brought together, and the point of service

delivery is carefully synchronized.

Ms. Joana Marie Bartolome, the CEO/general manager, provides leadership,

direction, training, and teamwork skills. She is accountable for giving others

understandable and respected oral and written advice and action recommendations.

She has demonstrated the ability to give operational solutions for task and service

delivery requirements by providing educated decisions, recommendations, and/or

alternate methods of approach.

Ms. Mary Kristine Alido, the finance coordinator, managed cash income and

costs, budget allocations, cash flow projections, cash flow reporting, financial

monitoring, and the use of financial data for decision-making.

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Ms. Rhea Anne Agagad, the marketing coordinator, was in charge of creating

and executing the company's advertising, marketing, and communications plans for

its highly technical services to promote brand recognition, boost sales, and

guarantee clear communications on several topics. The marketing coordinator also

supports all internal communication projects and activities.

Ms. Jennifer Manulat, the operation manager, operations manager oversees

and manages the daily operations of an organization. Collaborating with top

management to define operational goals and objectives. Developing operational

strategies and plans to achieve the organization's objectives. Translating the overall

business strategy into actionable plans for the operations department. Overall, the

operations manager plays a crucial role in managing and improving the day-to-day

operations of an organization. They need to possess strong analytical, problem-

solving, and decision-making skills, as well as effective leadership and

communication abilities to ensure smooth operations and contribute to the overall

success of the business.

Ms. Jonalyn Molina. the sales manager, was responsible for leading the

sales team and achieving sales targets. She develops sales strategies, sets sales

goals, manages customer relationships, and monitors sales performance. Overall,

the sales manager is responsible for driving sales growth, managing the sales team

effectively, and contributing to the achievement of the company’s revenue targets.

She plays a vital role in building and maintaining customer relationships and

ensuring the organization’s competitiveness in the marketplace.

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Figure 6. Organizational and Management of Organic Blends

Production

To effectively meet customer demands and optimize production efficiency,

the business decided to incorporate two key production strategies: make-to-order

and make-to-stock. The make-to-order approach involves producing goods only

after receiving customers' orders, enabling the business to customize products

according to specific customer preferences. By doing so, the enterprise ensures

that each product is tailored to individual needs and minimizes the risk of excess

inventory. On the other hand, the make-to-stock strategy entails producing goods

based on forecasts and stocking them in anticipation of customer demand since the

business has a physical store. This method allows for faster fulfillment of orders as

products are readily available in stock, reducing lead times and increasing customer

satisfaction. By implementing both of these strategies simultaneously, the business

effectively balances flexibility with efficiency, offering customized solutions while

also meeting immediate demands.

Squeezing fruits and vegetables. The process is a common method for

extracting juices that are both refreshing and nutrient-dense. This method includes
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applying pressure on fruits and vegetables to extract the liquid they contain. There

are several methods for accomplishing this, including using a manual or electric

juicer, or simply squeezing by hand.

Figure 7. Squeezing fruits and vegetables

Fruit and vegetable extracts. These are obtained by concentrating liquids

or essences from plant sources. The procedures used to gather extracts differ

depending on the type of plant material and the desired qualities of the finished

product.
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Figure 8. Collecting fruits and vegetables extracts

Mixing fruits and veggies in a bottle is a simple and innovative way to

enjoy a delicious and nutritious beverage. This method is often used to make

flavored water, detox drinks, and cold-pressed juices. Mixing fruits and veggies in a

bottle is an easy and pleasurable way to get a variety of flavors and nutrients

throughout the day.

Figure 9. Mixing fruits and vegetables

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Filtering and bottling juices are key procedures in the commercial production

of fruit and vegetable juices. These stages ensure that the finished product is free of

contaminants, pulp, and other unpleasant materials while retaining its flavor, color,

and nutritional value.

Figure 10. Filtering and bottling juices

Figure 10 depicts the end product of organic juices, which retains the original

flavors and colors of the fruits and vegetables used in preparation. Organic juice

packaging and labeling are often transparent about the substances utilized. Clear

and informative labeling enables consumers to make educated decisions.

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Figure 11. Finished products

Procurement of Materials

Organic Blends is an enterprise that produces a new taste of an innovative type

of juice made from vegetables and fruits in the market. The production of Organic

Blends started with producing tools, equipment and supplies, purchasing raw

materials, and then preparing and extracting ingredients. The proponents’ working

area was kept clean and sanitized.

Procurement of direct and indirect materials. The total direct materials is

₱5,066.00, including honey, lemon, water, whip ginger, cucumber, carrot, calamansi,

celery, lemongrass, pineapple, apple, watermelon, and melon.

This table shows all the materials that were used to produce the Organic

Blends. It shows the materials we needed and the cost of each juice that the firm

produces for the first month of operation.

Table 2 shows the direct materials such as an apple, calamansi, cucumber,

carrot, celery, ginger, honey, lemon, lemongrass, pineapple, water, and watermelon

which amounted ₱5,066.00.

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MONTHS APR MAY JUNE JULY SEPT OCT NOV DEC JAN FEB
WEEKS 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Pre-Operating
Activities:
Conceptualization of
the Project
Project proposal
preparation
Proposal defense
Implementation and
Control
Deposit of capital
Procurement of raw
materials, equipment,
packaging, supplies,
and office supplies
Production
Promotion
Selling of the
Products
Inventory, monitoring,
and control
Evaluation of
project
Writing the
Manuscript
Final defense
Revision of the
manuscript
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Table 2. Direct materials

DIRECT MATERIALS UNIT QUANTITY PRICE COST

Apple Piece 12 ₱30.00 ₱360.00

Calamansi Kilogram 3 ₱80.00 ₱240.00

Cucumber Kilogram 5 ₱48.00 ₱240.00

Carrot Kilogram 2 ₱130.00 ₱260.00

Celery Kilogram 1 ₱180.00 ₱180.00

Ginger Kilogram 1 ₱100.00 ₱100.00

Honey Liters 5 ₱500.00 ₱2,500.00

Lemon Piece 30 ₱15.00 ₱450.00

Lemongrass Piece/tie 2 ₱15.00 ₱30.00

Pineapple Piece 4 ₱90.00 ₱360.00

Water Liters 2 ₱23.00 ₱46.00

Watermelon Piece 1 ₱300.00 ₱300.00

TOTAL ₱5,066.00

The indirect materials are plastic bottles, plastic cups, take-out plastic

bags, cap seals, and transparent vinyl stickers in amounted to ₱1,796.60.

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Table 3. Indirect materials

INDIRECT MATERIALS UNIT QUANTITY PRICE COST

Bottle (500ml) Piece 100 ₱11.76 ₱1,176.00

Bottle (1000ml) Piece 40 ₱16.24 ₱649.60

Cap seal Piece 50 ₱2.40 ₱96.00

T.O Plastic Bag Single Piece 40 ₱3.50 ₱175.00

Vinyl Transparent Sticker Piece 140 ₱5.00 ₱700.00

TOTAL ₱1,796.60

Table 3 shows the kitchen tools and utensils such as a cold press juicer,

boiling pot, stainless funnel, mesh filter bag, stainless measuring spoon, stainless

measuring cup, and mixing bottle which amounted ₱7,990.00.

Table 4. Kitchen tools and equipment

KITCHEN TOOLS AND UTENSILS QUANTITY PRICE

Boiling Pot 1 ₱800.00

Cold Press Juicer 1 ₱6,000.00

Mesh Filtering Bag 1 ₱120.00

Mixing Bottles 2 ₱320.00

Stainless Funnel 5 ₱400.00

Stainless Measuring Cup 1 ₱185.00

Stainless Measuring Spoon 1 ₱165.00

TOTAL ₱7,990.00
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Table 5 shows the sanitation and safety supplies used such as the

adjustment hairnets, aprons, plastic gloves, and tissue which amounted ₱2,025.00.

Table 5. Sanitation and safety

SANITATION AND SAFETY UNIT QUANTITY PRICE COST

Customized Apron Piece 5 ₱350.00 ₱1,750.00

Hairnet Piece 1 ₱30.00 ₱30.00

Plastic Gloves Pack 1 ₱50.00 ₱50.00

Tissue Pack 2 ₱45.00 ₱90.00

Wipes Pack 3 ₱35.00 ₱105.00

TOTAL ₱2,025.00

Table 6 shows the cart amounted to ₱4,866.67 and the other expenses

included cups, lids, syrup press glass, fruit organizer, cooler, and cup holder rack,

for a total of ₱5,096.67.

Table 6. Other expenses

OTHER EXPENSES PRICE

Customized Cart ₱4,866.67

Cups and Lids ₱2,500.00

Cups holder rack ₱1,096.67

Syrup Press Glass ₱300.00

Fruits Organizer ₱500.00

Cooler ₱700.00

Office supply ₱66.75

TOTAL ₱10,030.09
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Production Process

The following includes the process of vegetable and fruit extraction. After

collecting all the ingredients needed, the procedure begins with washing all

vegetables and fruits and cutting them into the desired size by easily putting them

into a juicer machine. By having the extract of lemon grass, we need to boil it into a

clean boiling pot and boil it for about 20 minutes until the smells come out to its stem

and wait until it cools down. Next, after preparing a juicer machine that is already

cleaned and sanitized we can now put all vegetables and fruits one at a time into the

juicer machine while collecting its extract and putting them into clean and sanitized

plastic bottles. After we all collect the extract of vegetables and fruits, we can mix

and blend it by mixing them until the desired flavor is already achieved. Next is to

prepare all empty bottles with a transparent sticker with its flavor in it, and now we

can easily pour and filter the mixture of juices by having a stainless funnel and mesh

and slowly pour it inside the bottle. And lastly, the production team already sealed it

with its cup with a tamper to ensure the safety of juices, and put it inside the fridge to

chill and now it's already available for sale.

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Figure 12. Production process

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Inventory

The table shows the inventory of Organic Blends in the third week of

September. Since then, they have begun to sell and acquire from its production.

They 9 cups of the first version without any inventory left, 58 bottles of version 2

with 6 ending balances, and 44 bottles of version 3 with 8 ending balances. The

following month, October, Organic Blends produced 26 cups of version 1 with 12

ending balances, 157 bottles of version 2 with 25 ending balances, and 41 bottles of

version 3 with 4 ending balances. In November, entrepreneurs created 166 cups of

version 1 with 32 ending balances, 210 bottles of version 2 with 27 ending balances,

and 47 bottles of version 3 without ending balances. In December, the business

manufactured 108 cups of version 1, 195 bottles of version 2, and 70 bottles of

version 3 without any ending balance of any version of juice.

Production Summary

Table 7 show the variant quantity for the month of September to December,

shows the total quantity of 1009 bottles and cups

Table 7. Monthly inventory

VARIANT SEPT OCT NOV DEC TOTAL

350ML 9 14 134 104 261

500ML 52 132 183 192 559

1000ML 36 37 47 69 189

TOTAL 97 183 364 365 1009

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Sales Summary

Organic Blends has consistently promoted its goods through a variety of

channels. The owners sought to generate excitement to draw in potential clients even

before the soft launch. The juice is sold in three different quantities: 350 milliliters for

fifty-nine pesos (PHP 59.00), 500 milliliters for eighty-nine pesos (PHP 89.00), and

1000 milliliters for one hundred seventy pesos (PHP 170.00). Nearly ten liters of the

mix size and flavor were sold within the first week of the sale. The owners decided to

increase inventory the next month to meet the demand from the patrons. They

anticipated a sharp increase in sales because they had to sell as much as they could

to increase their revenue. Their efforts paid off because the juice is sold almost every

day.

However, even though the company still needed to make juice in October, sales

increased that month. Following that, the proprietors remain committed to growing

their business, which results in increased sales for them. When the juice's new flavor

was introduced in the final month of sales.

Table 8. Sales Summary

VARIANT SEP OCT NOV DEC TOTAL

350ML 531 826 7,906 6,13 ₱15,399.00

500ML 4,628 11,748 16,287 17,088 ₱49,751.00

1000ML 6,120 6,290 7,990 11,730 ₱32,130.00

TOTAL SALES ₱97,280.00

Table 8 presents the overall sales for the month of September to

December with a total of 97,280.

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Marketing

E-commerce makes it possible for businesses and their consumers to

conduct business online, which benefits them both. As a startup, Organic Blends

sells its goods through social media. Customers may easily connect with the brand

identity and discover more about the product because of this. Organic Blends uses

Instagram, and buy-and-sell pages in the Facebook marketplace to post content

frequently to inform and attract clients,

Figure 13. Facebook page of Organic Blends

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Figure 14. Instagram account of Organic Blends

The business provides social media platforms for more effective market

penetration. It allows them to showcase the merchandise to people who use social

media. Moreover, the business also lists its products on E-commerce platforms such

as Instagram and Facebook.

Product

The product combines premium ingredients with a touch of style and are

securely sealed to preserve their freshness. These thoughtfully crafted products offer

a harmonious fusion of flavors, carefully curated for a satisfying taste experience.

The well-sealed packaging ensures that you receive the full richness of the blend,

maintaining its quality from the moment it leaves hands to when you open it to enjoy.

Figure 15. The Organic Blends products

Product Description

Organic juices are a delightful blend of carefully selected fruits and

vegetables, crafted to provide a refreshing and nutritious beverage. Packed with

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natural flavors and free from artificial additives, these juices offer a vibrant taste

experience while supporting a healthy lifestyle. Each bottle is a commitment to

quality and sustainability, ensuring you enjoy the pure essence of organic goodness

in every sip.

Among the Healthy conscious today more fulfilling lives are becoming

more interested in juicing among today's health-conscious population. This book is

an attempt to meet the growing need for accessible, locally relevant information. The

benefits of consuming fruits and vegetables as fresh as possible are explained to

readers of Healthy Juices. More than a hundred practical recipes for fruit and

vegetable smoothies and juices, along with their vibrant combinations, are included

in this handy reference. It also provides suggestions for using the pulp. Explore the

science underlying this way of living and discover the health advantages of each

element as you page through energizing clear images of the abundance of nature.

Price

The Organic Blends version one sells for fifty-nine pesos (PHP 59.00) and

version two sells for eighty-nine pesos (PHP 89.00), and version three sells for one

hundred seventy pesos (PHP 170.00) Table 9. Price Per Product

Table 9. Price per product

Product Price Unit Cost Mark Up Selling Price
350ML ₱59.00

500ML ₱89.00

1000ML ₱170.00

Promotions

The stall of Organic Blends is located inside the mall of Main Square Bacoor,

Cavite to attract more people. The business promotes the goods on social media

platforms, including by posting on the Facebook and Instagram pages. To promote

product to attract more people, they post 2 to 3 times a week. They include the

customer reviews and some of their pictures. Identified sponsored medium to

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promote and present goods and services to potential buyers. This is mainly done to

convince potential customers to buy the product or service.

Table 10. Facebook ads

Promotion Price
Social Media Advertisement ₱300.00
TOTAL ₱300.00

Mode of Payments

Organic Blends accepts payment via direct selling, where money is handled in

person. For the convenience of clients who reside far away, Organic Blends also

provides a cash-on-delivery option for delivery orders. Additionally, buyers can use

Facebook Marketplace to place their orders. The business also used G-cash and

Paymaya as payment platforms since its target market utilizes it for various

transactions.
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Figure 16. Mode of payment

Place
The Organic Blends stall strategically located at Main Square Bacoor, Cavite.

It is also available on Facebook Marketplace and can be purchased on Instagram.

The site was chosen because of its accessibility to entrepreneurs and the availability

of the working area, customers should be able to reach the stall with ease, whether

they are strolling, shopping for groceries, or returning from the gym. Hence, this

location strategies contribute to the success of our juice business by ensuring a

seamless supply chain, delivering superior products, and maximizing our reach to

target customers.

Finance

Owner contributions constitute a vital component of our financial foundation

and provide the source of our capital. Capital contributors not only provide monetary

resources but also assume a portion of the enterprise's risks and benefits. A

comprehensive agreement is frequently required for owners to contribute capital;

this agreement specifies the quantity of capital to be contributed, the percentage of

ownership, the way in which profits are divided, and the right to make decisions.
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Financial Break Down

Table 11 shows the breakdown of advertising, direct and indirect materials,

labor, cups and lids, cup holder rack, syrup press glass, fruit organizer, cooler, and

office supplies. The overall breakdown of expenses includes all expenses involved

during the production was amounted to ₱25,263.42.

Table 11. Financial breakdown

EXPENSES AMOUNT

Advertising Cost ₱300.00

Direct Materials ₱9,200.00

Indirect Materials ₱5,600.00

Labor Cost ₱5,000.00

Cups and Lids ₱2,500.00

Cup holder rack ₱1,096.67

Syrup Press Glass ₱300.00

Fruits Organizer ₱500.00

Cooler ₱700.00

Office supply ₱66.75

TOTAL ₱25,263.42
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FINANCIAL ANALYSIS

The financial analysis evaluates businesses, projects, budgets, and other

finance-related transactions to determine their performance and suitability.

Typically, financial analysis is used to analyze whether an entity is stable, solvent,

liquid, or profitable enough to warrant a monetary investment. Financial statements

such as the Balance Sheet, Income Statement, Cash Flow Statement, and Owner's

Equity were used to examine the company's economic performance.

Financial Statement

The company's current financial situation and how it used shareholder funds

are summarized in the table below. There are three main financial statements for

the company. The balance sheet comes first and displays the company's assets,

liabilities, and net value as of a certain date. The first one illustrates the company's

financial situation; the second one, the Income Statement (also known as the profit

and loss statement), explains how the company's net income is calculated over a

specified period. The Cash Flow Statement is the last one; it displays the cash

inflows and outflows that are a result of the business's operations over a given

period. These three assertions are useful resources that may be utilized to assess

a company's financial stability and give an instant overview of its financial well-

being.

Income Statement

The Organic Blends income statement is displayed in the data below. It

specified the precise product components that are sold each month along with their

costs, indicating the gross profit. It also covers the monthly costs incurred by the

business while it is in operation. Lastly, this indicates the net profit for the last four (4)

months of business. The income statement of Organic Blends for the period of

September to December 2023. It shows that the business has a total sales of
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₱97,280.00 while the total cost of sales for this period is ₱56,699.92 which

represents the direct costs associated with producing or purchasing the products that

Organic Blends sells. As a result, the business had a gross profit of ₱37,580.08 at

the end of December 2023. There was also an operating expense during the period

which includes the rental fee of the space, sanitation and safety supplies, advertising

promotion, and office supplies which amounted to ₱21,106.75. As a result, the net

income of the business was ₱16,474.54.

Table 12. Income statement

ORGANIC BLENDS
Statement of Income
For the four months ended December 31, 2023 (In Pesos)
Amount

Sales 97,280.00

Cost of Sales

Direct materials 42,416.85

Labor 5,000.00

Kitchen tools and equipment 7,186.40

Depreciation 5,096.67

Total 56,699.92

Gross Profit 37,580.08

Operating Expenses

Rental 18,715.00

Sanitation and safety 2,025.00

Advertising Promotion 300.00

Office supplies 66.75

Total 21,106.75

Operating Income 16,473.33

Add: other income

Interest Income 1.21

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Net Income 16,474.54

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At the end of 88 days operation, the total partners' equity is ₱30,400,

which means that this is the combined value of all the owners' investments in

the business. Therefore, each partners have an equal share of ₱6,080.

Table 13. Partners equity

ORGANIC BLENDS
Statement of Partners Equity
For the four months ended December
31, 2023 (In Pesos)

Bartolome Molina Manulat Alido Agagad

Capital,
September 2023 3,890.00 3,890.00 3,890.00 3,890.00 3,890.00

ADD:
Net Profit-November 2,520.00 2,520.00 2,520.00 2,520.00 2,520.00

Partner’s Equity End 6,080.00 6,080.00 6,080.00 6,080.00 6,080.00

Statement of Financial Position

The statement of the financial position of Organic Blends as of December

reveals a healthy financial standing. With total assets amounting to ₱51,874.54, the

company possesses a substantial amount of resources that can be utilized to

generate revenue and support its operations. On the other hand, the total liabilities

of ₱5,000 indicate that Organic Blends has some outstanding obligations or debts

that need to be settled. However, it is worth noting that the total equity of

₱46,874.54 surpasses the total liabilities. Furthermore, when combining both total

liabilities and equity, which also amount to ₱51,874.54.

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Table 14. Statement of financial position

ORGANIC BLENDS
Statement of Financial Position
For the four months ended December 31, 2023
(In Pesos)
AMOUNT

Assets

Cash in bank 41,681.21

Equipment-Cart (net) 4,866.67

Kitchen tools (net) 5,326.67

Total Assets 51,874.54

LIABILITIES AND EQUITY

Liabilities

Accrued Labor 5,000.00

Total Liabilities 5,000.00

Equity

Partners Equity 30,400.00

Commutative earnings 16,474.54

Total Equity 46,874.54

Total Liabilities and Equity 51,874.54

In the statement of cash flow for organic blends for September to

December 2023, it is evident that the company has been managing its cash flow

effectively. With a total cash balance of ₱41,681.21, it indicates that the company has

generated positive cash flows during this period.

Table 15. Statement of cash flow

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ORGANIC BLENDS
Statement of Cash Flows
For the four months ended December 31, 2023
(In Pesos)
Amount
Cash from Operating Activities
Net income 16,474.54
Add: Non-cash Expenses
Depreciation 5,096.67
Operating income before changes in working capital 21,574.21
Change in Current Asset
Accrued Labor 5,000.00
Net Cash Provided (Used) by Operating Activities 26,571.21

Cash from Investing Activities

Acquisition of Cart Equipment (7,300.00)
Acquisition of Kitchen Tools (7,990.00)
Net Cash Provided (Used) by Investing Activities (15,290.00)

Cash From Financing Activities

Partner's capital contribution 30,400.00
Net Cash Provided (Used) by Financing Activities 30,400.00

Cash Balance at End of Year 41,681.21

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FINANCIAL RATIOS

The Organic Blends’ financial ratios, including their gross profit, net profit,

return on Investment, and Return on Assets, are summarized in the table below.

The summary of the financial ratio the Gross profit margin is 38.63 percent,

the Net profit margin is 16.94 percent, the Return on asset is 54.19 percent and the

Return on investment is 39.52 percent.

Table 16. Financial Ratio of Organic Blends

SUMMARY OF FINANCIAL RATIO VALUE %

Gross Profit Margin 38.63%

Net Profit Margin 16.94%

Return on Asset 54.19%

Return on Investment 39.52%

Gross Profit Margin

This financial metric reveals the amount of money available from sales

after deducting the cost of items sold to analyze a company's financial health. This

shown below that the Gross Profit Margin is 38.63 percent. This means that a 38%

profit margin can be considered good for many companies, although it depends a lot

on the industry and other factors. For new businesses, you may need to consider

small profits at the beginning because they are new to the market, but it will take

time and effort to build up the business to get the right profit margins for the

company to be profitable in the future.

Gross Profit Margin = Revenue - COGS/ Revenue x 100

= ₱97,280.00 - ₱59,699.92X100

= 38.63%
 35

Net Profit Margin

At the end of its 88-day operation, the business has a Net Profit of 16.94%

percent. This figure implies that it is good for the business. A higher net profit margin

generally indicates better profitability, but it's essential to analyze it in conjunction

with other financial metrics and benchmarks within the business to determine its

adequacy or improvement potential.

Net Profit Margin =Net Profit/Total Revenue x 100

=₱16,474.54/₱30,400X100

=16.94%

Return on Investment

This is a performance metric used to assess investment efficiency. The

business has a Return on Investment (ROI) of 54.19%. The return on investment

indicated is approximately 54.16%. This figure is good for the business, but it

depends on various factors, such as business standards, business goals, and the

risk associated with the investment.

Return on Investment = Net Income/Cost of Investment x 100

=₱16,474.51/₱30,400.00x100

=54.19%

Return on Assets

The business demonstrates the value of assets in terms of generating

profits. The Return on Assets at 39.53 percent implies that it is good for the

business. A higher ROA generally indicates better efficiency in generating profits

from assets. However, it's essential to consider other factors and compare the ROA

to industry benchmarks or historical performance to assess its adequacy or

improvement potential.

Return on Assets = Net Income/Average Total Asset x 100

= ₱16,474.54/₱41,689.21x100
=39.52%
 36

PROBLEMS, SOLUTIONS AND INSIGHTS

Entrepreneur approaches their business and products by positioning

themselves and thinking as though they are already in the business sector. There will

be obstacles to business progress and problems in every industry. The partners

knew that issues would arise occasionally, mainly when producing the goods. The

main challenge of Organic Blends is inflation. It was hard for the business owners

because rising costs can impact everything from goods to labor and rent, making it

hard to maintain profitability and keep up with the competition.

Problem

One of the main problems when purchasing direct and indirect materials is

inflation. Since the price of the product must be maintained, it was difficult to

manage the price of the production. In addition, marketing was also one of the main

problems in business because not all the potential market knew that entrepreneurs

selling juices within the location.

Solution

The entrepreneurs' solution was to search for the cheapest bottle and sticker

materials on the market and online to control the expenses. They also came up with

promotions and digital and physical marketing. The promotion helped entrepreneurs

gain customers intrigued by what the business offers. Digital marketing helped

entrepreneurs reach more audiences through social media, and physical marketing

helped by simply handing out flyers so potential customers could quickly locate the

store nearby.

Insights

Facing and solving problems taught entrepreneurs the importance of

teamwork and focusing on business goals. Developing and improving products and

using effective promotional strategies was vital to increasing sales and reaching
 37

target income. Managing a business requires skills learned from education,

emphasizing personal growth and competency development for success.

Additionally, accepting feedback from customers helped entrepreneurs build good

relationships. Lessons from their classes were directly used to promote and establish

the business, involving decisions, marketing strategies, and tools like a business logo

and social media. This hands-on experience not only taught decision-making and

hard work but also provided valuable knowledge for real-world business success in

the future.

Plans

In line with the entrepreneurs dedication to providing healthy and organic

options, the future plans for Organic Blends Juice include expanding its product

range to include smoothies and juice blends with added bits. The entrepreneurs have

conducted extensive market research, which indicates a growing demand for

convenient yet nutritious options that cater to diverse tastes and preferences.

Introducing smoothies into the business lineup aims to offer consumers a refreshing

and wholesome drink option packed with essential vitamins and minerals.

Additionally, including bits in our juices will provide an exciting sensory experience by

incorporating small pieces of fruits or vegetables into the blend, enhancing texture

and flavor. This innovative approach aligns with current health trends and allows us

to differentiate ourselves in the competitive beverage market further. The

entrepreneurs are optimistic about this expansion and look forward to delighting our

customers with these new additions in the near future.

 38

SUMMARY AND CONCLUSION

Summary

Organic Blends is an enterprise that provides fresh fruits and vegetables

which are healthy and delicious. The business started on September 25, 2023 with a

starting capital of ₱19,450. Organic blends negotiated with their suppliers, who can

provide a regular supply of their fruits and vegetables. The Organic Blends' objective

was to offer a healthy juice that can help the immune system of the market and

experience an affordable quality drink and packaging that customers can bring

anywhere. The entrepreneurs start to market and sell their products from September

to December 2023. The business constructed two key production strategies. The first

one is make-to-order and make-to-stock. In this way, the entrepreneurs can manage

their time and the amount they can produce.

After four months of conducting the business, the entrepreneurs sold 261

bottles of variant 1 organic blend juices, 559 bottles for variant 2, and 189 bottles for

variant 3. As a result, the entrepreneurs had a net income of ₱16,474.54.

Conclusion

There is a saying, "The first step is the hardest". Entrepreneurs can easily

open a business, but many "what ifs" come to mind. The business does not end

when it is open, but it's just the beginning of every success and loss that

entrepreneurs or business owners must pass through.

Organic blends faced challenges and difficulties. Since that incident,

entrepreneurs decided to brainstorm and discuss the specific factors they must focus

on, such as price, production, people, and place. The entrepreneurs discuss the

suggested retail price for each product. In this way, they not only satisfy the

customers, but they also make a profit. The entrepreneurs also discussed the best

places to get fresh and in good-condition supplies. Place is the hardest thing
 39

entrepreneurs talk through because they must know where to put their stall so they

can quickly sell their products.

Communication is the key in business. The entrepreneurs conduct a usual

conversation to know the status of the sales and the products. Also, in constantly

running a communication, the bond of each entrepreneur is deeper, and the

entrepreneurs share their observations and suggestions for product innovation.

 40

REFERENCES

Borghoff,(2023). Organic Juice Processing Quality from the Processors’

Perspective: A Qualitative Study. Foods. Retrieved from
https://doi.org/10.3390/foods12020377

Murphy, C. B. (2023). Financial Statements: list of types and how to read them.
Retrieved from https://www.investopedia.com/terms/f/financial-statements.asp

Tuovila, A. (2023). Financial Analysis: Definition, Importance, Types, and Examples.

Investopedia. Retrieved from https://www.investopedia.com/terms/f/financial-
analysis.asp
 41

APPENDICES
Appendix 1. EDP logo 42
Appendix 2. Passbook 43
Appendix 3. The Entrepreneurs 44

Joana Marie V. Bartolome Mary Kristine S. Alido

Rhea Anne D. Agagad Jonalyn L. Molina

- RQDO\ Q/ 0 ROLQD

Jennifer S. Manulat
- RQDO\ Q/ 0 ROLQD
Appendix 4. Sample Products 45
 46
Appendix 5. The EDP Store
Appendix 6. Promotional Materials 47

Instagram

Facebook
Appendix 7. DTI Permit 48
Appendix 8. Certification from CPA 49
 50
Appendix 9. Certification from English Critic

. Republic of the Philippines

CAVITE STATE UNIVERSITY
Tanza Campus
Ph. 2, Bahay Katuparan, Bagtas, Tanza, Cavite
(046) 414 – 3979
www.cvsu.edu.ph

CERTIFICATION

To whom it may concern,

This is to certify that the Entrepreneurial Development Project manuscript of

Joana Marie V. Bartolome, Rhea Anne D. Agagad, Mary Kristine S. Alido,
Jennifer S. Manulat, and Jonalyn L. Molina entitled “Organic Blends” has been
read and edited by the undersigned English Critic.

MELONA I. SAQUIN
Accredited English
Critic
Appendix 10. Routing Slip 51