MUSHROOM ‘N CHIPS

BUSINESS PLAN

A Business Plan

Presented to the College of Business and Accountancy

Bataan Peninsula State University

In Partial Fulfillment

of the Requirements for the

Degree of Bachelor of Science in Business Administration

DIAZ, CARL JOSHUA A.

RONQUILLO, DAISY C.

REGALADO, MARINEIL T.

OSIO, CHRISJOHN ASTER R.

LOPEZ, RALPH JASON P.

TOMAGOS, KIM CHERRIE U.

February 2023

DR. EDGAR M. MORENO

Professor

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 ACKNOWLEDGEMENT
First of all we would like to show our heartiest gratitude to the Almighty God who
makes us able to successful compilation of this Business Plan.
We would like to give express millions of appreciations for those who were involved
either directly or indirectly in becoming this progress report as a successful business plan.
We hope that we will be able to run this business smoothly thus can lead to become a
successful entrepreneur.
We thank you our professor Dr. Edgar M. Moreno, for his support, advice, guidance,
valuable comments, suggestions, and provision that benefited his much in the completion
and success of this study. Sharing his knowledge and helped in the analysis of data. And last
by giving an endless helped to finish this study. We are thankful for having such a good
professor like you.
After overcoming all obstacles and adversity, we have finally arrived at our target.
We are very happy to announce that we have completed our business plan document.
Without a doubt, ample knowledge and experience were obtained while completing this
course. Though it is undeniably challenging for us to accomplish the task, it is worthwhile,
and we learn a lot.
We dedicate this effort to everyone who is always motivated to learn and can
continue studying and believing in God at all times.

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 TABLE OF CONTENTS
Page
Title Page………………………………………………………… i
Acknowledgement……………………………………………….. ii
Table of Contents………………………………………………… iii
List of Tables………………………………………………..…… iv
List of Figure………………………………………………..…… v
Executive Summary……………………………………………… vi

CHAPTER Title Page

1 PROJECT BRIEF……………...………………………... 1
2 EXECUTIVE SUMMARY.……………….…………….. 1
Marketing Aspect……………………………………….… 1
Production Aspect.....…………………………….……….. 1
Management Aspect……………………………….……... 1
Financial Aspect…….……..……………………….…….. 2

3 ORGANIZATION/PROPONENT OVERVIEW….…… 3
History, Structure and Organization…..……………….…. 3
Strategic Direction………………………………………... 4
People and relevant skills and expertise …...…………….. 4
Address/Location…………………………………………. 5

4 INTRODUCTION……………………..………………... 6
Background of the Business……………….………..……. 6
Objectives………………………………………….……... 7
Beneficiaries…………………………………...…............. 8
Brief Description of the Proposed Business……...………. 9

5 THE PROPOSED BUSINESS/PROJECT…….………. 10

A. Marketing Plan……………………………………………. 10
Analysis of the Market……………..………..……. 10
Products or Services to be Offered………………... 11
Brand Strategy………………….…...….................. 12
Distribution Strategy………………............………. 13
Product Strategy…………………………………... 14
Pricing Strategy………………...…...…................... 15
Promotion Strategy………………...............………. 16
Prospective Buyers………………...............………. 16

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B. Objectives………………………………………….……... 17
Production Cycle…………………...…................... 17
Plant/Workplace……………………..............……. 19
Raw Materials………………….…………..……... 20
Facilities………………………...…...…................. 20
Personnel……………………….................………. 21
Safety and Health………………................………. 22
Productivity………….…………................………. 22
C Management Plan…………………………………...…...... 23
Composition of Management Team............………. 23
D. Training Needs……………………………..……...………. 24
E. Commitment of Stakeholders………………….……..……. 25
F. Profit Sharing Scheme……………………………….…….. 25
G. Financial Plan…………………………………...…............. 25
Monthly Working Capital Requirements…...…...…. 25
H. Stakeholders’ Commitments………………………………... 29

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 LIST OF TABLES
Figure Title Page
1 Distribution…………..…………………………………… 13
2 Buildings and Location….………………………………. 19
3 Raw Materials…………………………………………...... 20
4 Tools & Equipment..……………………………………… 21
5 Personnel……………………...…………………………… 21
6 Profit Sharing Scheme……..……………………………... 25
7 Cost of Direct Raw Materials…..………………………... 26
8 Cost of Direct Labor…………….………………………... 26
9 Indirect Labor……………………………………………… 26
10 Indirect Materials……..…………………………………... 27
11 Manufacturing Overhead……....………………….……... 27
12 Capital Outlay…………………….………………………... 28
13 Pre-operating Cost ………………………………………… 28
14 Total Project Cost………………....………………….……... 29

LIST OF FIGURES
Figure Title Page
1 Organizational Structure………………………………… 2
2 Logo of the Business…………………………………....... 6
3 Delivery Schedule……...………………………………… 14
4 Product…………………………….……………………… 15
5 Production Cycle…………………………………………. 17
6 Manufacturing Site Layout………………………..…….. 20

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 EXECUTIVE SUMMARY
OVERVIEW

Mushroom ‘n Chips is a product type business which includes in the food

industry and manufactures a different flavored mushroom chips. It is being

handled by a six general partners who all are the founders of the business. It is

being established in February 2019 and was continuously operating up to the

present. The business provides a product that promotes a healthier option than the

other products available in the market.

OBJECTIVE

The idea of building a business and creating a business plan is to do the

passion in providing quality products and service to the local where the business

can gain profit. Entering the international market is a big step and risk for the

business but it is also an opportunity to expand and explore on different type of

markets.

The aim of the business is to satisfy the taste buds of every individual that

will try or consume to try the product and the its diverse health and environmental

benefits also which includes some the following:

• Contain soluble fiber beta glucan which can help the immune system.

• They have virtually no fat or cholesterol.

• Contain B vitamins, selenium, and potassium.

• Low in carbs and high in protein.

• Lesser carbon footprint.

The business wanted to become known as one of the best provider of

mushroom chips not only locally but also in foreign markets like South Korea

where the business plans to expand and operate, as well as to sell its products.

South Korea is a good country for the products to be introduced as South Koreans

are known as healthy or vegetable eaters. According to the OECD, South Korea

has been the global leader in per capita vegetable consumption for many years.

Furthermore, the business is striving to expand its presence to global

market by entering international markets as there are opportunity in the growing

industry and demand for vegetable chips including mushroom chip

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 CHAPTER I: PROJECT BRIEF

Proponent : BPSU-CBA
Name of Beneficiaries : Diaz, Carl Joshua A.
Ronquillo, Daisy C.
Tomagos, Kim Cherrie U
Regalado, Marineil T.
Lopez, Ralph Jason P.
Osio, Chrisjohn Aster R.
Project Title : Business Plan
Total Project Cost : ₩8,977,091.49
Contact Person : Diaz, Carl Joshua A.
Ronquillo, Daisy C.
Contact Number : 09662439255
09309826505

CHAPTER II: EXECUTIVE SUMMARY

MARKETING ASPECT
Many conscientious people do not consume chips, and many parents do not feel
comfortable giving this to their children. Mushroom ‘n Chips company intends to launch
Mushroom healthy chips of excellent quality and safety. The product quality is superior to
that of our competitors since our major ingredient is oyster mushroom, which is a
completely new flavor with a delightful taste and are also good sources of nutrition. The
target consumers for mushroom chips are children and teenagers, but we also favor the
product for the younger generation and the elderly.
PRODUCTION ASPECT
Mushroom chips are produced by going through different process to ensure the
quality and taste of our product. The collected oyster mushroom will go through selection
then cleaning, after is the drying process to putting variety of flavors. Before it arrives for
distribution, it will go through inspection then it is ready to be package for shipping.
MANAGEMENT ASPECT
The management aspect of Mushroom ‘n Chips company will ensure that each and
every production and distribution of the product will go smoothly, as well as guaranteeing
that our products meet the safety and quality standard. Each process must be on-point in
preparing the mushroom and for how long it will take to dry. Everyone must wear proper
PPE to ensure that no hair falls or sweat, and dirt will fall, to avoid future complaints from
the customers. Exact measurement of ingredients is a must so that there will be no problem
or a change in the taste.

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FINANCIAL ASPECT
The Mushroom 'n Chips' financial aspect in terms of revenue, encompasses the cost
of ingredients and production, as well as potential sales revenue. The ingredients,
packaging, transportation, administrative costs and labor, are main factors that affects the
price of Mushroom 'n Chips products. The price at which Mushroom 'n Chips products are
sold can also be influenced by factors such as demand, competition, and production costs.
The company is funded by owner’s contributed capital and can also be liability financed.
Generally, the financial aspect of Mushroom 'n Chips entails balancing production costs
with potential sales revenue.

CHAPTER III: ORGANIZATION/ PROPONENT OVERVIEW

HISTORY
The people behind this were used to making financial investments, so they decided
to start their own company and become its owners. Then, days, months passed by, they
have finally constructed plans and strategies for this company. The business became
established on February 15, 2019 and named “Mushroom ‘n Chips”. The name “Mushroom
‘n Chips” came from the idea of the founders. They are interested about mushrooms and
decided to make a review about different kinds of them. After a thorough review and a lot
of taste tests, they have decided and agreed that they will use oyster mushroom for their
business.
The company initially offered 3 different varieties of mushroom chips but has now
expanded to 6 different varieties. Despite the challenges the business faced, particularly
the pandemic that is still going on today, the business managed to thrive and turn a profit.
The company still gained popularity, and many customers expressed satisfaction with the
product. Eventually, the owners' goal/dream is to be present in both the domestic and
foreign markets.
STRUCTURE

Figure 1: Organizational Structure

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ORGANIZATION
The CEO is always in charge and answers to the board of directors. Setting and
carrying out the organization's strategy, distributing capital, and assembling and managing
the executive team are the main duties. CEOs must have outstanding leadership traits,
excellent communication skills, and an incomparable enthusiasm for the company and its
employees. Although it can create a potential conflict of interest, CEOs occasionally hold
the position of board member.
Under Operations and Production Director are manufacturing, purchasing, and
sales department, who makes sure they all meet the objectives set by departmental and
business leadership. In order to reach financial goals, each division's budget and cost of
sales are planned, directed, controlled, implemented, evaluated, monitored, and forecasted.
They design and manage the policies and practices that guarantee the organization's
productivity is in good condition.
The company's long-term financial stability and expansion are the responsibility of
the Director of Accounts and Finance. They create plans for making money, supervise
accounting activities, produce precise data on where money is spent inside the company,
and enhance or modify existing procedures to boost productivity. They oversee the
development and application of the company's accounting policies and practices. They are
in charge of managing accounting specialists and staff as well as accounting operations and
systems, analysis, and creating some reports.
Sales and Marketing Director is in charge in all areas of business accounting and
finance operations, including budgeting, payment verification, collection, and year- and
month-end account closing. Also, the one who’s preparing management, financial
accounts, business planning and forecasting,
Human Resource Manager is responsible for guiding and monitoring the normal
duties of the Human Resources (HR) sector, such as recruiting and hiring new employees,
regulating pay and benefits, granting leave, and enforcing business regulations and
procedures. When hiring new staff, they organize, plan, and manage the process. They
provide business executives with strategic planning advice in addition to serving as a point
of contact between management and the workforce.
Manufacturing Employees are people who work or provide services for the
Mushroom 'n Chips company like working on process of drying the mushroom, through
seasoning the different flavor, and packaging of the products. They are employed in
exchange for compensation. They are important to Mushroom 'n Chips since they may
significantly increase the company's capacity for production.
The Inventory Manager monitors shipments, deliveries, and product levels to
enhance inventory control methods. They evaluate supply and product inventories on a

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daily basis to foresee inventory issues and shortfalls. Also, optimizes operations by
controlling employee, delivery, and shipment schedules.
Quality Control inspector is in charge of supervising the manufacturing procedure
and making sure that the products and packaging adhere to quality requirements.
Records are being updated and maintained by the inventory staff. They are
measuring the stock of resources, tools, goods, or supplies. Reporting inconsistencies
between physical counts and electronic information is another thing to do. They are
assigned to jobs including receiving inventory stock, distributing or stocking products, and
other tasks as needed.
STRATEGIC DIRECTION
A. Mission
To establish a progressive community organization that consistently makes
a significant contribution and succeeds in providing a variety of products for our
respected consumers, employees, suppliers and distributors.
B. Vision
By supplying the best flavor of mushroom chips, to become one of the most
recognized businesses on the market. The Mushroom 'n Chips Company wants to
establish a firm foundation in order to be an international first choice for mushroom
chips products by 2030.
C. Objectives
The company aims to provide one of the most appetizing and nutritious
snacks for anyone. The Mushroom ‘n Chips can guarantee that the flavors we offer
are nutritious and go through a thorough process to provide them tasty chips.

PEOPLE AND RELEVANT SKILLS AND EXPERTISE

Ensuring fair and considerate engagement of all of our employees is our top
priority. We will provide them benefits like healthcare and retirement savings plans to help
them make preparations for the future and live comfortably in the present. In addition, we
will provide every employee the opportunity to develop within the organization based on
merit rather than family ties or employment history.
Management Skills - Having management skills is being able to manage Mushroom
‘n Chips company. It involves controlling the overall performance of the business while
being able to make the proper decisions. It requires being capable of effective
communication and produce outcomes by giving employees a solid business strategy to
help them achieve the Mushroom ‘n Chips’ goal. To run a company, one needs
management skills, which cover managing workplace concerns, personnel, teamwork, and
communication. In addition, it involves assigning tasks to staff members and keeping track
of their performance while also achieving the Mushroom ‘n Chips’ goal.

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 Leadership Skills - The qualities and talents that people possess that enable them to
manage operations, lead initiatives, and direct their teams toward the accomplishment of
objectives. In order for CEOs to effectively allocate resources to fulfill the mission and
goals of Mushroom ‘n Chips and make meaningful decisions regarding those decisions,
they must possess strong leadership skills.
Negotiation Skills - To achieve better agreements inside Mushroom ‘n Chips
company, negotiation skills are necessary. Communication, persuasion, and influencing
strategies, planning, strategizing, and the use of tactics, techniques, tools, systems,
procedures, and teamwork are all part of the negotiation procedure.
Decision-making Skills -To manage the complex workplace challenges, Mushroom
‘n Chips company have strong decision-making abilities that require careful
consideration including how to distribute resources, which team members to include, and
how to implement new organizational initiatives. With the increasing number of tools and
resources available for data collection, the managers of Mushroom ‘n Chips provide their
operations with insightful information to support data-driven decisions and produce
improved results.
Interpersonal Skills–Mushroom ‘n Chips rely on communication to organize the
work and achieve organizational objectives. The company elude the possibilities
of absence of communication or ineffective communication, as this could lead to
misunderstanding. Another skill the Mushroom ‘n Chips have is understanding and
adapting to other people's communication styles to ensure success, and in addition to
enhancing the employee’s personal skills. Reading body language, empathetic listening,
and active listening are additional important communication skills.
Marketing Skills – Mushroom ‘n Chips company ensure that we are able to
recognize the consumers' concerns and figure out how to remedy them through the goods
and services we offer. It calls for the application of both communicative and analytical
skills.
ADDRESS/LOCATION
The location of Mushroom ‘n Chips building is currently located at Yeoksam-dong,
Gangnam, Seoul. Yeoksam-dong is in the region of Seoul, which is a city in South Korea
and is located at South-East of Seoul, the country’s capital. Yeoksam-dong is a ward of
Gangnam-gu, which is one of Seoul's most talked about and fastest-growing
neighborhoods.
The building measures approximately 300 square meters. Inside the building is the
production area that is 2,000 square feet, to ensure its proximity to suppliers, and skilled
laborers. The warehouse measures approximately 1,000 square feet so that there is enough
room for all of the inventories, receiving the supplies and shipment of products.

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 CHAPTER IV: INTRODUCTION

A. BACKGROUND OF THE BUSINESS

Figure 2: Logo of the Business

Mushroom ‘n Chips is a business included in the food industry that distributes local

products in the Philippines. The company develop a product that healthy conscious eaters

can avail. Mushroom ‘n Chips wants to be one of the leading providers of good and high-

quality products not only in the Philippines but internationally. The main product that the

company was selling is mushroom chips which is available in a variety of flavors.

The business was established on February 15, 2019, and continuously operating in

the present. Products are originally developed by the owners from the collective ideas

generated, it was being developed and patented by the owners so it will be available in the

market. Raw materials used in production creation are being supplied by local suppliers

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while the finished products are being transferred to different distributers across the nation.

The products are widely available in the Philippines and can be found on some department

stores, resellers, and even on some online shopping platforms.

Mushroom ‘n Chips started from a small business which expands overtime, the

business also survived the massive effect of the Covid-19 pandemic. The company were

able to sell 1,000 packs of products per week which is quite far from just almost a hundred

packs when the business was established.

The company wants to embrace the growing opportunity of vegetable chips or non-

potato chip products in the market especially the increasing demand for mushroom chips

globally that’s why it plans expand from domestic market to the world of international

market.

B. OBJECTIVE

• Profit Earning

To gain profit from the products it manufactures and distributes

internationally which necessary for the purpose of growth and expansion of the

business and its activities.

• Provider of High-Quality Products

To provide the needs and wants of society who are selective when it comes

to the taste and type of food especially for health-conscious eaters.

• Increase Popularity and Market Share

To establish a name and presence to be remembered in food industry and in

people’s mind, and to gain more market shares in the future.

• Utilization and Innovation of Resources

To keep up with the modernity and in the competition, it aims to be updated

with the latest trends, methods, techniques, strategies, equipment, and machineries,

and utilize its resources to be more developed, flexible, and cost-efficient.

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 • Social and environmental responsibility

To give back to the society and to help in preserving a healthy environment.

The business enterprise wants the youth to be more educated and empowered as

well as giving help and support to citizens in times of calamities.

In addition, to promote environmental awareness by ensuring that the

business does not violate any laws that can harm the environment which is a notion

that the enterprise wants to sustain and use of nature friendly materials and proper

segregation of waste materials is a habit to help locals to preserve the nature.

C. BENEFICIARIES

1.1 Direct

The direct beneficiary of the business is those who’s involved and will be

participating directly in the operation and some transaction in the business, and thus

benefit from its existence.

The direct beneficiaries of the business are the following:

• Owners

• Consumers

• Distributors

• Employees

• Local Suppliers

• Investors

• Government

• Logistics Partner

1.2 Indirect

On the other hand, indirect beneficiary of the said business are often, but

not always, are those within the zone of influence of the business, and thus benefit

from its existence.

The indirect beneficiaries of the business are the following:

• Community

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 • Charity

• Family

• Third Parties

D. BRIEF DESCRIPTION OF THE PROPOSED BUSINESS

The name of the business is “Mushroom ‘n Chips” which is developed by the

owners, it is partnership type of business and included in the food industry. It is owned by

six general partners who’s the founders and involved in the operations and decision-making

process. Owners has the same shares which is divided from the revenues.

Mushroom ‘n Chips embrace the diversity in terms of preference in food and take

risks on the growing opportunity in the industry of vegetable chips or non-potato-based

chips that’s why the business wants to bring the products from local to international market.

Process in creating the product is originally developed by the owner, it was patented to be

legalized by law on selling it to the market. The products that the business sell is mushroom

chips which is available in six different flavors namely, original, cheese, chili, garlic,

barbecue, and honey butter. Raw materials in creating the products are supplied by a local

supplier which is also a partner of the company. All of the ingredients used are fresh from

start to end with no added preservatives, it was being manually processed by the local

workers in the production with the available equipment from the start of the process to

packaging. The packaging material used is nature friendly and easy to dispose nor can be

used again. All the products that the business will sell will be processed in the Philippines

but the raw material in creating the finished product is still from the local suppliers in the

Philippines to support the local industry.

The company has a dream of having an international presence with its great

products and good process. The Mushroom Factory is holding with a belief that more local

products in the Philippines deserves to be known internationally and the products by which

the company produce is one of it.

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 CHAPTER V: THE PROPOSED BUSINESS/PROJECT
A. MARKETING PLAN
• ANALYSIS OF THE MARKET
Product-market Fit
The popularity and demand for vegetables chips is rising over the past few
decades and getting bigger over the coming years. The demand for vegetables chips
or “veggie chips” specifically non-potato chip products is mostly driven by rising
consumer knowledge about the benefits of consuming non-potato chips and meat-
based products. In addition, the pandemic affects the way of living of many
individuals as many people around the globe switched to a healthier living or
lifestyle or wants to lessen their carbon footprint. Some people became vegan which
is a big factor non-potato chips products grow overtime. Eventually, mushroom
chips are one of the most popular products that people prefer because of its crisp,
flavor, and health benefits, it is not new in the snack segment and the business offers
a number of varieties which consumers will likely try.

Competition
The competitors of the company are the other business who currently offer
and sell the same and similar products that is available in South Korea. The industry
size and market share of mushroom chips and other kind of plant-based or veggie
chips are continuously increasing which is a factor for new business with same
industry arrive. Other kinds of chips including potato chips, corn chips, chips made
in wheat like nachos, and more in the snack and other food segments are all
considered competitors of the business in the proposed place where the business
will distribute its products.
Opportunities & Threats
Opportunities in selling mushroom chips in vegetable chip segment across
the globe and attract foreign consumers in a country especially a part of Asian
countries were big as many businesses with the same or similar products in the
Philippines distribute their product in mainly in domestic market only and there are
few businesses who export this kind of product in international market that is why
competition can be handled by the company. A big opportunity also for the aside
from the rising growth of demand in veggie chips is the culture where many in
Asian countries has farmland nor loves to eat vegetables nor vegetable-based
products.
Threats on the other hand are the usual threats and challenges that other
businesses in the food industry may encounter and experience in both domestic and
international market and it includes:

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 • Changes in snack or food preferences of the targeted consumers in the.
• Increase of business with same and similar products in the targeted foreign
countries.
• High probability of product duplication.
• Increasing competition in international market.
• Managing global teams in operating the business and promoting, handling,
and distributing the products.
• Political risks especially from the right to export or import goods and the
right to operate.
• Changing currency exchange and inflation rates.
• PRODUCTS OR SERVICES TO BE OFFERED
The products that Mushroom ‘n Chips offer is mushroom chips which is
one of the varieties of vegetable chips or non-potato chip products that are available
in the market. Oyster mushroom is the commonly used type of mushroom, it
undergoes in two quality checks before being packed and distributed. The business
offers five additional flavors aside from the original so customers can choose
depend on their preference in flavor.
Quality
The quality of the products that will be sold and soon to be available in
South Korea is as high as Mushroom ‘n Chips products make and offer in the
Philippines. The products manufactured undergoes in the legal process of quality
inspection and receives certification and high product rating in South Korea which
is the same that the business does in its original branch in the Philippines before the
products is being launched to public.
Raw materials specifically the oyster mushrooms which is the main
ingredient were supplied by a company partner in the Philippines while other
ingredients are from local suppliers in the Philippines as well. All the ingredients
have a good quality, clean, and freshly maintained through a good inventory
monitoring system of the business.
Workers hired to take the responsibility on processing the products are
physically healthy and monitored, and skilled and trained to maintain a high quality
of finished product. Equipment and machineries are ensured to be one of the latest
versions to fully serve its function. Last, a clean and healthy environment in the
workplace is maintained.
Affordability
Products offered are surely affordable by the foreign consumers despite of
the price increase because of the costs incurred on the process of building a business
in South Korea but also for the additional expenses on how the product will be

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 processed or produced like transportation costs for exporting the raw materials from
Philippines to South Korea, taxes being paid by the business, higher salary for the
employees because of a higher cost of living in the country and many other factors.
There are differences also in terms of currency, exchange rates, and economic
condition in the country that affects the market price of the product. Foreign
consumers mainly South Koreans has the capacity on buying the product because
of their strong purchasing power due to their huge salaries.
Products are worth to avail for its quality that can be compared from the
products available in South Korea and for its benefits to people.
• BRAND STRATEGY
In the increasing market of vegetable or non-potato chip products, the
product was able to attain uniqueness. Despite having the same nor similar products
available globally, because of the original recipe and process, and how satisfying
the product when eaten will separate the product from the others. The business also
chosen a country that has a strong purchasing power, tourist destination, and health-
conscious eaters. South Korea is an ideal country to put-up a business because of
its good economic condition, and people’s healthy eating habit of its people. In
addition, the product comes with a variety of flavor that certain people prefer, and
many people can try or choose. People’s preference in taste may change overtime
that’s why the business offer a variety aside from the basic item that consumer can
usually see in the market.
Mushroom ‘n Chips uses a brand strategy in order to shape the perceptions
of audience basically the consumers so that the business can influence them and
meet its specific business goals.
Brand Purpose
The business has its purpose that can create an appeal to consumers which
is already tested in the Philippines and will be used in South Korea. The purpose of
the business is to promote a healthier lifestyle by acquiring the offered products
that has health benefits or lesser effect that adds on having health related risks and
undergo with a healthier food production or process which is a great alternative
from the product available in the market. In addition, Mushroom ‘n Chips is a brand
that helps to protect and preserve the welfare of environment through eco-friendly
packaging. The business not only sell its product to gain but it has a benefit which
can manifest to the human body that many people wanted to achieve and switched
on the past years or decade.
Attitude Branding
Mushroom ‘n Chips will build an image on creating particular emotions on
the consumers. The benefits which the customer can gain through the product and

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 which the business promotes like healthy living and lesser carbon footprints will
serves as the brand’s personality overtime. The finished product and the business
objective of using eco-friendly packaging or materials will express a particular
lifestyle that will attract or appeal many of the consumers.
• DISTRIBUTION STRATEGY
Mushroom ‘n Chips production capacity in 1 week for 6 days is 600 packs
which is equivalent to 100 packs produced in 6 working days. The business set a
number which serves as the target sales per month which is 2,500 packs derived
from the number of finished products produced per month and the products belong
in the inventory. The business needs at least sell 92% of its target sales per month
which is equivalent to 2,300 packs which is 4.17% lower from the actual produced
outputs per month in order to continuously generate an income and continue its
operations.
The products will be distributed to grocery and supermarkets, e-commerce
sites, and distributors and resellers. Also, the business is open to add a number of
finished goods produced per day depend on the number of demands.
The table below shows the number of packs distributed to each parties
monthly.

Table 1: Distribution
Delivery Schedule
The schedule used on delivering the products is based on the agreement of
the business and the other party; the business and its partners agreed on delivering
such products is by the end of the month. Parties involved who will be selling and
distributes the product directly to the consumers commonly order their products a
week ahead to secure the items that they usually order. There are indicated days on
every month which both parties have decided on when the business can deliver the
goods and when the party is available to receive such items; through this, it will be
organized and will ensure that products are available when ordered and complete
when delivered. Products or items are picked-up using small trucks from the

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 location of the business to the designated parties. The table attached shows the
shipping schedule of items in a month per party.

Figure 3: Delivery Schedule

Modes of Payment
Mushroom ‘n Chips accepts two payment options; buyers may pay in cash
nor through online paying applications. Parties included where items will be sold
were able to avail the products through credit but will undergo on evaluation. The
business needs to inspect first their business and personal background especially
their credit history and rating so their request will be accepted. The party needs to
settle their debt first in the business and wait for 6 months to make a credit again.
• PRODUCT STRATEGY
The business is striving to serve the public by providing good products,
promote a healthier lifestyle, and committed to improve and innovate its products
and services overtime. In order to continuously deliver its product, the business
ensures to build good relationship on the parties where the product will be sold.
Having a good relation through goods services can boost the confidence of
distributers to trust and not change the business as their supplier.
In addition, the business is committed to improve its products and processes
through innovation that will match the preferences of consumers. The business is
open for innovation and creating new ideas through the latest trends and strategies
implied by other businesses. Also, the business will strengthen its marketing and
promotion strategy overtime to maintain its presence in the public. People’s
awareness is a huge factor why a consumer bought a certain product despite of
having a similar brands in the market.
Furthermore, the business is continuously maintaining awareness on the
business environment both in the Philippines and South Korea, research on

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 different areas in business are implied that can help the growth and development of
the business.
The figure below is the image of the actual product.

Figure 4: Product
• PRICING STRATEGY

The business considers different factors in setting the price of the product
to be bought by foreign consumers. In addition, the business chose a pricing
strategy where it feels that it will be the best option in setting the product price.
Competitive Pricing Strategy
The business chose competitive pricing strategy on setting the prices of the
items per pack. The direct consumers of the products of the business are those who
hill directly sell the product to consumer and they need to add an amount in order
to gain profit. The business chose the said pricing strategy so the direct consumers
can compete with their competitors in terms of prices.

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• PROMOTION STRATEGY
Online Marketing
Digital marketing is one of the best marketing strategy that businesses
embrace. Mushroom ‘n Chips has different accounts on multiple social media
platforms namely, Kakao Talk, Facebook, Instagram, and Tiktok where there is
huge number of users in South Korea. It is also a great platform to introduce the
business aside from the products by showing the profile of the business and an
opportunity for the customers to communicate with the business directly.
According to dateportal.com, there were 46.81 million of social media users in
South Korea in January 2022 which is equivalent to 91.2 percent of South Korea’s
total population.
Web advertising never fails to reach a lot of people or customers, a big part
of people’s awareness on the brands were relied through online advertising.
Public/Private Relations
Getting in touch and building good relationships to the parties who will
directly sell the products to the consumers namely, groceries, supermarkets, e-
commerce sites or sellers, distributors, and resellers is one of the best moves on
helping the brand in maintaining and increase its presence or popularity in public
and its sales.
Clear Brand Message
Having a clear brand message of the purpose of the products that can change
the lifestyle of individuals is important as it will boost the confidence of the public
to patronize the product. The value of the products offered by Mushroom ‘n Chips
can attract the right people as they can see that it is the right product for them.
• PROSPECTIVE BUYERS
Mushroom ‘n Chips will sell its products to different clients namely,
groceries, supermarkets, e-commerce sites, distributors, and resellers. These clients
will purchase the product directly from the business and sell directly to consumers.
Clients are located on different areas in South Korea, products will be delivered
through the logistics partner of the business. Each clients have their own way on
how they will sell the products so it will be purchased by the consumers, the price
on how much the product will be sold from them depends on their pricing strategy.
Having clients that distributes the products directly to consumers helps the business
to reach a broader audience and increase its presence to public aside from the
promotions and marketing strategy implied by the business. Mushroom ‘n Chips is
also open to sell products to other clients in the future.

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B. PRODUCTION PLAN
• PRODUCTION CYCLE
The figure below shows the stages of mushroom chip production from the
first process to distribution.

Figure 5: Production Cycle

Recleaning
The ingredients are being supplied by a company partner in the Philippines
specifically the oyster mushroom which the business is using to create mushroom
chips. Before the workers process the mushroom, it will undergo first with
recleaning, mushrooms supplied by the company partner are harvested by them and
already undergo with process of cleaning to remove its dirt but to it will undergo
again in recleaning to ensure that the mushroom’s to be processed are clean.
Mushrooms will be washed thoroughly in cool water. It will be dried by clean cloth
to absorb excess moisture and lay out on a clean cardboard for an hour until dry
enough to store. This process helps to avoid having foreign object appear when
mushrooms are bagged when it is now ready to be processed.
Quality Check
Before the mushrooms proceed with the next process, it will undergo first
with quality checking to ensure that mushrooms to be processed are in good quality
and all defects will be removed before entering the air frying and prepping process.
There are assigned quality assurance personnel that will manually check the
condition of the mushroom to avoid those mushrooms that are contaminated,
infected and has discoloration already to proceed with the next stage of creating the
mushroom chip. This procedure helps to ensure a high quality of product and safety
of customers.

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Air Frying & Prepping
After the quality checking process, mushrooms are ensured to be clean with
the previous processes and ready for air frying and prepping.
First, workers will cut the mushrooms into thin slices to ensure that it will
be cooked quickly and evenly using air fryers. After the mushrooms are sliced, it
will dry by patting it again using a clean paper towel to remove any excess moisture,
so they don’t steam while being cooked in the air fryer. Succeeding to the previous
procedure, mushrooms are ready to be fried. Mushrooms will be cooked for 15
minutes at 180°C (350°F) turning the mushroom halftime.
Quality Check
When the mushrooms are cooked, it will undergo again in quality checking
to make thar all of the mushrooms are cooked, and it is in good condition before
the process of adding flavors. Mushroom chips must be in light yellow to golden
brown color and it must be crispy and crunchy without greasiness. After checked,
it will proceed to the process where workers add different flavors on the chips.
Having this quality checking process makes the products more valuable and ensure
that customers will get a high quality from what the business introduce its products
to the market.
Adding of Flavors
After the quality checking, the chips will be added with different flavors
based on what the business offer. Flavors are added before the chips is packed to
ensure that the favor is dully distributed on the chips. Chips are mixed up with
flavorings specifically powders using small resealable bags and it will be
transferred on different container depending on the flavor then proceed for the
packaging process.
Packaging
When the chips are mixed with flavors, the container of each flavored chip
will proceed to packaging area. Workers will weigh the weight of the chips and put
it on the kraft paper pouches with the flavor indicated. Chips must be exact to weigh
100 grams, the pouches have all the information that the customer needs to be aware
such as the name of the brand, flavor, ingredients, nutrition facts, the date of
expiration, the location of the business, and so on. Each flavored chip has its own
designated packers and area so all of the flavors will not be mixed during the
packing process.
The packers ensure that every pouch that contain chips were sealed properly
to avoid contamination. All of the kraft paper pouches that is properly sealed will
be properly organized in a container so it maintains its good condition then it will
be given to the personnel who is responsible in storing the finished product or items.

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 Inventory
All of the finished products will be transferred to the stockroom which is
ensured that it is always in good room temperature. All finished products are
properly organized to maintain its good condition and properly labeled based on its
classification, the date when it is manufactured, the quantity per variety. Mushroom
chips has a shelf life of 6 months in the stockroom. Inventory personnels are
responsible on checking on organizing the stockroom and checking the product’s
condition and tasked on listing down every time there that there are changes and
report it on the inventory manager.
Distribution
Products that are ready for sale will be sold directly to groceries,
supermarkets, e-commerce sites, distributors, and resellers then they will be directly
sell it to consumers.
• PLANT/WORKPLACE
Mushroom ‘n Chips has two buildings which is its office and the
manufacturing area which is both located at Yeoksam-dong Gangnam in Seoul,
South Korea. The warehouse of the business on the other hand is located inside the
300 square meter manufacturing site. 200 square meter is the total size of
production area if the size of the warehouse is removed in the total size of the
manufacturing site.
The table and figure below show the information about the infrastructures
of the business.

Table 2: Buildings and Location

The figure shown is the layout of the manufacturing site. It is divided into
two areas namely, production or manufacturing area, and the stockroom area or
warehouse. The size of each area are indicated in the layout to show the division
between them.

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 Figure 6: Manufacturing Site Layout
• RAW MATERIALS
The table below shows the raw materials used to create the finished product
and other related information. Materials are bought from Philippines in Philippines
peso shown in the computation; total cost are converted and shown through South
Korean won.

Table 3: Raw Materials

• FACILITIES
The laborers process the mushroom chips manually except in the air frying
process. The electric air fryer has a capacity of 10.5 liters equivalent to 10,500

20
 grams which is 500 grams higher than the number of products produced. It can
support the 10,000 grams of mushrooms being processed in one frying.
The table shows the list of tools and equipment and other related
information.

Table 4: Tools & Equipment

• PERSONNEL

Production Worker/Factory Worker

Oversees running production lines, monitoring the operation, and feeding
raw materials into the machines. Additionally, they perform fundamental quality
checks, including product or packaging testing before delivery, by properly
stocking all required materials.
Quality control inspectors
These individuals are in charge of supervising the manufacturing procedure
and making sure that the products and packaging adhere to quality requirements.
Inventory Staffs
These individuals oversee procuring raw materials, as well as overseeing
and organizing the finished products in the stockroom.

Table 5: Personnel

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 The table above are the list of direct workers in the production area,
numerical data in inventory staffs are not given as they are involved in process of
creating the product. The numerical data given are the minimum production
capacity that workers need to accomplish to reach the target quota of finished
products per month.
• SAFETY AND HEALTH

In the manufacturing of Mushroom ‘n Chips products, it is necessary to

protect both employees and customers, it is critical to adopt safety and health
precautions. These safety and health measures include the following:
1. Employees must be properly trained in the safe use of equipment and
materials, such as how to handle and cook ingredients and equipment used
in the manufacturing process.
2. Inspecting and maintaining equipment on a regular basis to ensure it is in
good working order.
3. Providing protective gear, including face masks, aprons, hairnets, gloves,
and uniforms, specially to individuals who are doing the cooking.
4. Implementing stringent hygiene practices, like regular handwashing and
workplace sanitization. The Fire Code safety regulations must be observed
and followed.
5. Informing supervisors immediately in case of work-related health and
safety problems to address the issues fast.
6. Employees must be trained in cases of accidents scenarios like fires and
earthquakes.
• PRODUCTIVITY

The production capacity of personnel in producing Mushroom ‘n Chips

products depends on the specific equipment and processes used in the production
site or facility. Generally, employees who are trained and skilled in cooking,
operating equipment, following safety protocols, and maintaining the condition of
the equipment will be able to produce more mushroom products than those who are
incapable. Some of the specific skills and training that may be needed are the
following:
Understanding of manufacturing processes
Employees should have a knowledge of the steps involved in making
Mushroom n' Chips, including the procurement and preparation of ingredients,
cooking processes, and packaging.
Knowledge on how to operate and maintain machinery

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 People should receive training on how to properly operate and maintain the
specific machinery used to produce mushroom products.
Quality control knowledge
Employees should be trained on how to inspect ingredients and finished
products to ensure they meet quality standards.
Understanding safety procedures
Employees should receive training on how to use machinery and equipment
properly as well as how to respond in an emergency.
Knowledge of relevant regulations and goals
Personnel should be familiar with any regulations and goals that apply to
Mushroom ‘n Chips production, such as those related to food safety environmental
protection, company objectives and quality standards.
C. MANAGEMENT PLAN
• COMPOSITION OF PROJECT MANAGEMENT TEAM

Chief Executive Officer (CEO)

The CEO is always in charge and answers to the board of directors. Setting
and carrying out the organization's strategy, distributing capital, and assembling
and managing the executive team are the main duties. CEOs must have outstanding
leadership traits, excellent communication skills, and an incomparable enthusiasm
for the company and its employees. Although it can create a potential conflict of
interest, CEOs occasionally hold the position of board member.
Operations and Production Director
Under this are manufacturing, purchasing, and sales department, who makes
sure they all meet the objectives set by departmental and business leadership. In
order to reach financial goals, each division's budget and cost of sales are planned,
directed, controlled, implemented, evaluated, monitored, and forecasted. They
design and manage the policies and practices that guarantee the organization's
productivity is in good condition.
Accounts and Finance Director
The company's long-term financial stability and expansion are the
responsibility of the Director of Accounts and Finance. They create plans for
making money, supervise accounting activities, produce precise data on where
money is spent inside Mushroom ‘n Chips company, and enhance or modify
existing procedures to boost productivity. They oversee the development and
application of the company's accounting policies and practices. They are in charge
of managing accounting specialists and staff as well as accounting operations and
systems, analysis, and creating some reports.

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 Sales and Marketing Director
The one who’s in charge in all areas of business accounting and finance operations,
including budgeting, payment verification, collection, and year- and month-end
account closing. Also, the one who’s preparing management, financial accounts,
business planning and forecasting,
Human Resource Manager
The one who is responsible for guiding and monitoring the normal duties of
the Human Resources (HR) sector, such as recruiting and hiring new employees,
regulating pay and benefits, granting leave, and enforcing business regulations and
procedures. When hiring new staff, they organize, plan, and manage the process.
They provide business executives with strategic planning advice in addition to
serving as a point of contact between management and the workforce.
Manufacturing Manager
Is in charge for running everyday operations. All the tasks involved in the
production process are coordinated, planned, and directed by them. They may be in
charge of the entire facility or just one particular stage. They assist in setting up the
machinery and a secure working environment, managing the production project's
workflow, ensuring efficiency throughout, and supervising the quality control of
the materials or commodities produced. Additionally, they guarantee that products
meet quality requirements, prepare production reports, examine production data,
and optimize for efficiency. They also make sure that production runs according to
schedule.
Employees
The people who work or provide services for the Mushroom 'n Chips
company like working on process of drying the mushroom, through seasoning the
different flavor, and packaging of the products. They are employed in exchange for
compensation. They are important to Mushroom 'n Chips since they may
significantly increase the company's capacity for production.

D. TRAINING NEEDS
All employees require training on personnel practices before they work on the
production floor. Training will be done by qualified staffs; allowing employees to learn
personnel practices from their coworkers may increase the chance of keeping bad habits.
There will be an orientation emphasizing the company's dedication to food safety. Doing
this will tell newly hired employees that food safety is a requirement and not an option.
The benefits and protocols will also be included in the orientation. Specific training on
procedures will be required for certain positions, such as: shipping, maintenance and

24
sanitation employees. The Human Resource Department will ensure the quality of
orientation and trainings of employees are adequate.
Human Resource Management Training (HR Concepts and Programs)
The fundamental HR concepts, theories, and programs will be covered in this
course. It also discusses how to manage HR-related conflict and promote workplace ethics,
as well as the roles played by HRMOs in supporting the delivery of HR services. The most
recent trends in recruitment tools and strategies, exam types and administration,
interviewing methods, employee benefit types, and other HR programs will also be
covered.
Training Orientation for Administrative Officers
This training equips administrative officers, assistants, or any other employee
designated as such in their individual offices with the information and abilities required for
efficient and effective operation.
E. COMMITMENT OF STAKEHOLDERS
We, the stakeholders of Mushroom 'n Chips company, dedicate ourselves to ensure
that we will provide to our customers the best and quality mushroom chips. We will be
steadfast to maintain cooperative business products as mushroom chips because it is an
integral part of our duties and responsibilities, and community involvement.
We also pledge to support the Mushroom 'n Chips projects and activities as it aspire
to expand the horizon of quality to start up a business or factory. We see this as a window
of opportunity to become competent and an active association for a brighter future. We
commit to invest our time, energy, and resources in ensuring our cooperative supply high-
quality products to our target market as well as to our purpose to stay committed. In
accomplishing the cooperative's vision and mission, we are one.
F. PROFIT SHARING SCHEME
The profit-sharing scheme are decided by all the owners who are all general
partners. The agreed profit-sharing scheme of the owners are 10% of the net income per
month. The total share of the owners from the net income will be 60% and will be equally
distributed, the rest percentage will be allocated for the operation, growth, and expansion
of the business and other stakeholders.

Table 6: Profit Sharing Scheme

G. FINANCIAL PLAN
• MONTHLY WORKING CAPITAL REQUIREMENTS

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a. Cost of Direct Raw Materials

Table 7: Cost of Direct Raw Materials

b. Cost of Direct Labor

Table 8: Cost of Direct Labor

c. Overhead Cost
Indirect Labor

Table 9: Indirect Labor

26
 Indirect Materials

Table 10: Indirect Materials

Other Manufacturing Overhead
1. Marketing
2. Utilities
3. Transportation
4. Rent
5. Others

Table 11: Manufacturing Overhead

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 d. Capital Outlay (Equipment/Tools)

Table 12: Capital Outlay

Pre-operating Cost

Table 13: Pre-operating Cost

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 Total Project Cost

Table 14: Total Project Cost

H. STAKEHOLDERS COMMITMENTS
We, the stakeholders of Mushroom 'n Chips company, dedicate ourselves to ensure
that we will provide to our customers the best and quality mushroom chips. We will be
steadfast to maintain cooperative business products as mushroom chips because it is an
integral part of our duties and responsibilities, and community involvement.
We also pledge to support the Mushroom 'n Chips projects and activities as it aspire
to expand the horizon of quality to start up a business or factory. We see this as a window
of opportunity to become competent and an active association for a brighter future. We
commit to invest our time, energy, and resources in ensuring our cooperative supply high-
quality products to our target market as well as to our purpose to stay committed. In
accomplishing the cooperative's vision and mission, we are one.
May God bless us all.

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