Introduction
SoyWorks is a business that will offer products made out of soy. The products that will be manufactured by the business are soymilk, soy custard (taho), and tofu (tokwa). The business is undertaken as a requirement in the course. Products
Tokwa- sometimes also called bean curd, is a food made by coagulating soy milk, and then pressing the resulting curds into blocks. The making of tofu from soy milk is similar to the technique of making cheese from milk. SoyWorks will market frozen and flavored Tofu. Soymilk- is actually a juice extracted from soybeans after soaking, grinding, cooking and straining. It is generally opaque, white or off-white in color, and approximately the same consistency as cow's milk. In some countries, it is marketed under the name soy drink, the term milk being reserved for real dairy products. SoyWorks will apply various fruit flavors such as mango, pineapple, and coconut. Taho- soft, sweet, creamy soy custard is served with a sweet, thick caramel sauce, a thin syrup laced with ginger, or served mixed with fruit or sugar syrup and chunks of coconut jelly. SoyWorks will serve flavored chilled taho.
Description of the Proposed Business
The main activity of the business is manufacturing. It will make products composed of natural soya. Some of these products are soymilk, soy custard (taho), and tofu (tokwa). The business plans to produce soy candles, soy sauce, and powderized taho in the long-run. But, for its first few years, it will focus on the taho, tokwa and soymilk. The business will be very particular of the packaging and the product itself.
The target markets of the business are the health conscious and those who loves products of soy such as tokwa and taho. Soy has a lot of benefits to ones health. According to "Soy Health News" written for the Indiana Soybean Board by Kim Galeaz, RD, CD, Food & Nutrition Consultant, Soyfoods are a source of high-quality protein. In addition, consumption of soy protein provides health benefits that may help prevent or treat certain chronic diseases.
The business will be located temporarily at Concepcion Pequeña Naga City, where one of the partners resides. The main reason is to lessen the rent expense. As soon as the break-even has been met and the business is capable to cover rental expense, it will rent a space near the Naga Center and other barangays in Naga.
Vision and Mission Statement
Vision
SoyWorks commits to providing Nagueños with high quality and healthy nutrition as it strives to become the most successful Soy company in the Philippines.
Mission
To earn our Customers loyalty by providing them with a high-quality, healthy and delicious soy products.
To maintain social responsibility & share the worlds obligation for the protection of the environment.
Industry Profile
Industry description
The Food Industry is one of the largest industries in the Philippines and is also one of its most profitable sectors. The relatively huge size of the industry is manifested in the countless food chains and food products that can be found market. The industry lies somewhere in between the early growth and the late mature phase.
Market Description
The target markets of the business are the health conscious and those who loves products of soy such as tokwa and taho. The business also targets those people that adore custard based products.
Competition
The competitors of the business are as follows: (1) the ordinary street taho vendors (2) the powdered taho producers (3) businesses that offer alternative products. Basically, the level of competition in the industry is not that high since there I an abundant supply of taho here in the region.
Suppliers Profile
The major suppliers of the firm can be found at the Naga City Supermarket. The raw materials, Soy and Calcium Carbonate can be found here.
Future outlook and trends
There is a positive outlook for this industry since the demand for taho, soy milk and tokwa is increasing and that the industry itself is yet to mature. The acceptance of the product by the consumers is the main determinant of future expansions that the business might take while the availability of the supply can also be a major influence in the future.
Proponent, Management and Personnel
Proponent
The business will be owned by five students from the Business Management Honors Program as part of their Income generating Project. The partnership will be composed of Michael Arevalo, Cherry Vie Saballegue, January Luzada and Ma. Michelle Abiog and Miguel B. Domingo. Each partner will invest equal amounts as part of the business capital. The type of partnership involved is limited, meaning that in case of insolvency, the liability involves only the business’s assets and not each partner’s personal properties.
Management
Job Classification Michael B. Arevalo
Job Title: GENERAL MANAGER
Job Description:
He performs all the function of the manager and has knowledge in different field of management.
a. Takes responsibility for the overall operation of the business.
b. Formulates the goals and objectives of the business.
c. Ensures that the operations of the business are correctly implemented in accordance with the policies and goals of the partnership.
d. Implement the organizational policies on a day-to-day basis to ensure that objectives are met.
e. Retains overall accountability.
f. Approves and disapproves all recommendations and suggestions from other managers.
g. Promotes coordination between other managers.
h. Calls for a weekly administrative meeting.
Job Specification
a. Must have the qualities and skills of a good leader.
b. Hardworking and committed to his work.
Michelle Abiog
Job Title: MARKETING MANAGER
Job Description:
Under the supervision of general manager, he performs the following functions:
a. Formulate strategies and alternative strategies in accordance with the goals and objectives of the business.
b. Takes responsibility for the making of advertisements and promotions.
c. Responsible for supplies management.
Job Specification
a. Has a good communication skill.
b. Familiar with the labor Code of the Philippines. Cherry Vie Saballegue
Job Title: FINANCE MANAGER
Job Description:
Responsible for making source documents.
a. Responsible for recording of transaction at the special journals and making adjustments and making worksheet.
b. Maintains or updates the balances of books at least a month and the subsidiary ledgers.
c. Prepare the financial statements every year.
d. Responsible for filing income tax.
Job Specification:
a. Computer literate.
b. Good communication and writing skills.
January Luzada
Job Title: OPERATION MANAGER
Job Description:
a. Responsible for assisting the needs of the customers.
b. Monitors and controls the activity of the workers.
Job Specification:
a. Good communication skill.
b. Must be approachable.
Miguel Domingo
Job Title: HR Manager Job Description:
a. Responsible for employing employees who will do all the hard work- extracting soymilk from soy beans, solidifying soymilk through the hydrogenator, packaging the products, and transporting products.
b. Responsible for the maintenance of machineries and equipments.
Job specification:
Must be approachable, willing to learn and hardworking.
Must have good communication skills and able to work under pressure.
Job Title: Front Desk Officer
Job Description:
Responsible in making arrangements to consumers.
Responsible for listing all delivery request, and attending to the needs of the consumers when they make orders.
Job specification:
Must be approachable, and has good communication skills.
Must be intelligent.
Job Title: Workers Job Description: Extracting soymilk from soy beans, solidifying soymilk through the hydrogenator, packaging the products, and transporting products. a. Market Description
Target Market- The target markets of the business are the health conscious and those who loves products of soy such as tokwa and taho. The business also targets those people that adore custard based products. Majority of these people are the children, students, young professionals and the like.
Majority of tokwa enthusiasts buy these products in the supermarket and grocery stores. The taho on the other hand, is carried by our personnel through a contraption that consists of two large aluminum buckets specifically designed for taho carriage, and a long narrow wooden plank, where these two buckets hang on each end. The soy milk is distributed through grocery outlets in Naga.
Marketing Strategies and Programs
The first issue that we will face is with the raw materials, ensuring that the cost, quality and availability of the materials used to make our soy products are consistent. The second issue is the capability of selling the finished product at a competitive price and how to select your proper market. The final step is consumer acceptance and safe use of your candle.
While it may seem like common sense, the keys for a successful candle company therefore are to 1) make a quality product both in terms of safety and appearance, 2) sell at a competitive price, 3) develop new products 4) develop a solid reputation for your company and 5) know your marketplace and limitations.
The following are the detailed marketing strategies of the business.
a. Product
1. Be practical and anticipate product demand and consider capacity.
One critical element is not to over extend or take on orders that are well beyond the production capability. While it is always very appealing to have the product accepted by the target market, it can hurt a growing or small company. It is imperative to review all costs--both direct and indirect costs. Freight in and out should also be considered. But, we will be choosing an alternative that will give us lesser cost for transportation.
2. Ensure Product Quality
Establishing a business involving soy is often seen as a risky investment because of the shorter shelf life of soy products. To resolve this, SoyWorks will follow the following schedule of production to ensure the quality of their products.
Taho
Shelf Life: 24 hours if kept chilled
Production Schedule:Everyday
Soymilk
Shelf Life: 7 days in tetra packs and 3 months if sealed in bottled containers
Production Schedule:Twice a week
Tokwa
Shelf Life: 1 week
Production Schedule:Once a week
3. Compete head on with the market.
One of the most appealing trend when it comes to food business has always been the ability for a company to compete in certain markets, regardless of its size. Even the smallest business has the ability to succeed because of their personal attention, potential for offering a wide range or variety of food products, and their ability to react to small orders in a rapid manner.
Pricing
Pricing decision is quite hard yet the most important decision the management must take. So much consideration has been looked upon before setting the price of the service. This had been carefully done to meet the business objective, to make profit.
The researchers considered the following in setting up the price.
Cost and desired mark-up
Competition
Customers demand
Company’s objective
Humanitarian Decision
The above considerations are described as follows:
First, The business must be sure that the set price will meet and recover the cost included in the service and also the desired mark-up.
Second, the price of the competitors had been considered. Of course, no one will avail of the service if the set price is more than the price of the existing candle shop.
The third is the customers’ demand to be assumed that the market with regards to their demand will patronize the set price for the service.
A company’s objective is to always profit in the business. To meet this, the pricing method focused on the ability of the business to meet such.
Humanitarian decision is included in this because the researchers believe that they have to think not only of the welfare of the business but also the welfare of the client.
· Avoid overpricing
The business will make sure that the products will be of reasonable price. This is because it would want to capture those who are not willing to spend much with candles. The prices of the candles will range from Php30.00 to Php300.00 depending on the design and size.
Place of Distribution
1. Grab every opportunity (i.e. trade fairs, etc)
A good source for selling soy products is through fund raisers with local organizations. This is a “win win” situation for both parties since payment typically is received at the time goods are sold. This lets you start to build a local following in the community with the fund raising organization serving as “sales representatives.” The good thing is that after the event is over, many people still will be interested in purchasing our products.
Included in the government agencies which support the Small and Medium Enterprise is TESDA. We would also grab opportunities for product promotion during Bikol Business Weeks, and during Local and international trade fairs. This idea is to be able to let the market know about the existence of the product- its quality and its health benefits.
2. Develop business’ network.
SoyWorks would consider good relationship with its customers as well as with its suppliers.
Promotions/advertising
1. Have a good website.
A well designed web site is always a good idea too. The thing that we will be doing is to ensure that the website is easily accessible by the public. That way, SoyWorks can go global.
Detailed Marketing Strategy
1. The business is established to provide innovative products made out of Soy. The business offers the following products:
Cold Taho or Cold Soy Custard with different fruit flavors such as mango, strawberry, pineapple, etc. The business also adds Honey, nata de coco, and big sago. The shelf life of the taho is 2 weeks if it is kept in the refrigerator. - Ready-to-drink Soy milk is also offered by the business. The buiness offers a lot of choices for soymilk- the pure soymilk and fruit-flavored soymilk.
- Packaged Tofu or Tokwa is also offered by the SoyWorks. It is pure, clean and is being exported to other countries.
- SoyCandles is another thing but the business is still working on such.
- Powderized Taho is also another product being considered by the business in the long-run.
2. The products would basically be an improvement of the “Soy” concept; adding quality, slick design and more flavors. The consumers are assured of the good taste, cleanliness, affordability, and consistency of the products.
The means of marketing the products are as follows:
Marketing Strategy
Taho
Marketing Strategy:Consignment to schools, and other business enterprise
Roving Vendors
Tokwa
Marketing Strategy:Consignment to the supermaket
Soymilk
Marketing Strategy:Consignment to schools, and other business enterprise and Roving Vendors
Management and Production Plan
Production Process
This is the production process for Taho:
1.Acquisition of Raw Materials
2.Soaking soybeans overnight
3.Grinding soybeans
4.Stewing and straining soymilk
5.Adding calcium carbonate
6.Adding fruit flavors
7.Packaging
8.Putting in Refrigerator
As to Tokwa, after straining the soymilk, it will undergo continuous pressing for half a day until all liquids are strained. Then it will be cut to smaller parts, pack and put in the refrigerator.
For soymilk, there won’t be calcium carbonate involved. After straining the soymilk, SoyWorks will get the milk and add the flavorings.
Equipments
The main equipments that will be purchased by SoyWorks in order to produce their products are as follows:
Equipments
Grinder
2 Refrigerators
1 Chiller
Casserole
Measurement and cooking utensils
Raw materials
The raw materials of SoyWorks’ products are soybeans, fruit flavors and calcium carbonate.
Waste Disposal
Garbage Truck roams around during Wednesday and Friday. This will be the time for the business to dispose their wastes.
Direct Labor Requirements
To ensure that the business will be on track with its goals and objectives, manpower requirements must be filled in with the right number of workers, officers and staffs to make the operations of the business flowing. The proper number of workforce will give confidence that production would meet the demand of the market.
The business will employ 4 Vendors, and two Operations Workers. The vendors will roam around Naga City to sell the products. The operations workers are involved with the production and manufacturing SoyWorks’ products. The compensation of the production workers and the employee will be based on the prevailing minimum rate in accordance with the department of Labor and Employment (DOLE). Appraisal of work will be done and benefits will be given for the personnel who excel on his/her work, in this way it would encourage efficiency of labor. The organizational policies state that part-time production workers will be having a ten working days, a day for the soybeans conversion to soy wax and the remaining days for the candle making. The full-time employees including the owners/managers will have an 8-hour working day and twenty working days in a month. Capitalization
Each partner will allocate Php20,000 from their own pocket to invest in the business. They are not going to borrow from any money-lending and financial institutions, primarily so that it will not result to financial obligations in case of insolvency to such institutions. Another reason is that most of these financial institutions offer high interest.
Financial Aspect
This financial study to determine the total project cost considering the consumption of all equipment needed, know the initial capital requirement, identify the availability of the sources of financing to support the propose project, generate projected financial statement of the business, and conduct a financial analysis of the business to determine its liquidity, profitability and solvency.
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