BUSINESS PLAN

Presented to
the Faculty of Business Administration Department
Institute of Accounts, Business and Finance
Far Eastern University – Manila

In Partial Fulfillment
of the Requirements for the Production and Operation Management

By
Gabriella Guevarra

Sean Adrian San Pedro

Dhana Lyn Sinlao

Cristine Sinnung

Jenny Sudaria

Angelo Viray

TABLE OF CONTENTS
I. Executive summary ......................................................................................................
II. The Business ................................................................................................................
III. Management Team .......................................................................................................
IV. Organization Structure, Ownership and Intellectual Property .....................................
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

V. Industry Analysis..........................................................................................................
VI. Marketing Plan .............................................................................................................
VII. Operational Plan............................................................................................................
VIII. Financial Plan................................................................................................................
IX. Critical Risk Factors .....................................................................................................

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I. EXECUTIVE SUMMARY

Pick-zza is a partnership type of business that will be established by six Internal Auditing
students from Far Eastern University- Manila. It aims to provide the customers the freedom to
choose what they want particularly in quantities of fifteen toppings being offered by the
business. Pick-zza intends to provide the customers' pizza experience to the next level.

It targets to win the hearts of the students, faculty, and people working around the area
where it is located. Pick-zza can be found at university belt. Thus, it will be the first pizza store
in the area, which offers, personalized pizza at affordable price.

The business guarantees to provide delicious and superior quality of products. It highly
prioritizes quality control and safety measure in the process of preparing the products to refrain
from future obstructions. The food industry in the country continues to rise. With such reason,
financial gains are still positive. Effective strategic and marketing plans will be implemented to
raise awareness about the company. Hence, owners are confident to recover the initial
investment in short period of time.

An aggregate of Php 200000 in cash will be gathered and be used to acquire the
equipment needed. Moreover, raw materials will be purchased on account to maximize discounts
and to spend cash wisely in other purposes.

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II. THE BUSINESS

Mission
To offer a high quality pizzas in accordance with customers' preferences at affordable
price as well as to create a friendly and pleasing atmosphere for customers and staffs.

Vision
To be one of the prominent pizza shop and to establish the market presence in the
locality.

Keys to Success
● A superior product that will promote customer loyalty.
● A business location where most people in the area pass by
● Employees that have great customer skills.
● Effective marketing strategies
● Reporting and controls in place for inventory and financials

The Opportunity
Pick-zza is a new player in the food industry of Manila specifically at the university belt
area. The business was formed due to the various preferences of customers with regards to pizza
toppings. Thus, Pick-zza's strategy is to exploit the first mover advantage and established itself
as the preferred pizza provider to the are. We believe that a customized pizza is an opportunity
and the best option to satisfy the different needs and wants of our valued customers.

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Institute of Accounts, Business and Finance

Business Model

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III. MANAGEMENT TEAM

Management team background

We, the partners of the Pick-zza are on our senior year of taking up Bachelor of Business
Administration major in Internal Auditing at Far Eastern University- Manila. Thus, we have a
background knowledge when it comes to business-related aspects. For the reason that we are first
timers with regards to starting a business, our management style reflects on the participation of
the owners in the operations as well as encourage all employees to learn as much as possible
about all aspects of business. We believe that the virtue of teamwork will lead us in managing
the organization effectively and efficiently.

Roles of the members of the organization

In our company we appointed four managers under a general manager . We mainly

appoint a manager for marketing, finance, human resources, and production and operation
department. Gabriella Guevarra is the general manager of the company. Selected by all of the
partners of Pick-zza , she has the following responsibilities :

❖ Communicating values, strategies, and objectives to employees

❖ Planning, monitoring, and appraising job results.
❖ Evaluate and decide upon key investments in equipment and talent.
❖ Coordinates efforts by establishing procurement, production, marketing, field, and
technical services policies and practices.
❖ Develops strategic plan by studying technological and financial opportunities; presenting
assumptions; recommending objectives.

Sean Adrian San Pedro is the marketing manager of the company. He is assigned with the
following responsibilities:

❖ Develop pricing strategies, balancing firm objectives and customer satisfaction.

❖ Identify, develop, and evaluate marketing strategy, based on knowledge of establishment
objectives, market characteristics, and cost and markup factors.

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❖ Formulate, direct and coordinate marketing activities and policies to promote products
and services
❖ Handling social media, public relation efforts, and content marketing.
❖ Evaluating competitors.
❖ Researching demand for the organization's products and services.

Dhana Lyn Sinlao is the human resource manager of the company. She is assigned with the
following responsibilities:

❖ Oversee an organization’s recruitment, interview, selection, and hiring processes

❖ Performance management and improvement systems
❖ Employment and compliance with regulatory concerns regarding employees
❖ Manages employee development, needs assessment, and training
❖ Handles employee relations
❖ Compensation and benefits administration
❖ Ensure employee safety, welfare, wellness, and health

Cristine Sinnung is designated as finance manager of the company. She is assigned with the
following responsibilities:

❖ Overseeing the flow of cash and financial instruments

❖ Preparing reports as required by law, regulations or company policies
❖ Predicting future financial trends
❖ Developing strategies that work to minimise financial risk
❖ Reviewing, monitoring and managing budgets

Jenny Sudaria is appointed as the bookkeeper and is under the supervision of the finance
manager. She performs the following tasks:

❖ Purchase supplies and equipment as authorized by management

❖ Monitor office supply levels and reorder as necessary
❖ Pay supplier invoices in a timely manner
❖ Pay any debt as it comes due for payment

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❖ Record cash receipts and make bank deposits

❖ Conduct a monthly reconciliation of every bank account
❖ Process payroll in timely manner

Angelo Viray is the operations manager of the company. He is assigned with the following
responsibilities:

❖ Selecting, ordering and purchasing materials

❖ Setting and reviewing budgets and managing cost.
❖ Overseeing inventory and facility layout.
❖ Ensure all legal and regulatory documents are filed and monitor compliance with laws
and regulations.
❖ Planning and organizing production schedules
❖ Researching new technologies and alternative methods of efficiency
❖ Determining quality control standards
❖ Organizing the repair and routine maintenance of production equipment

The employees under the production and operation manager are to be hired. They include:

Cashier

❖ Receives orders of the customers

❖ Accepts cash payments from customers
❖ Assists other staff as needed
❖ Helping resolve customer complaints or concerns
❖ Count money in cash drawers at the beginning and end of shifts to ensure that amounts
are correct
❖ Greets guests and employs suggestive selling techniques to enhance the guest experience
and to increase company revenues.
❖ Maintains line of communication with the other staffs.

Crew

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Institute of Accounts, Business and Finance

❖ Prepares the order of the customers

❖ Maintains the cleanliness of the station
❖ Assists the other staffs as needed
❖ Maintains line of communication with the other staffs.
❖ Respond to customers’ questions or concerns and make sure they leave satisfied
❖ Inspects the equipment to be used
❖ Checks the quality of ingredients
❖ Ensure proper storage of all items in refrigerators or freezers.

Both the cashier and crew must have the following qualifications:

➢ At least Senior High School graduate

➢ At least 6 months job experience with demonstrated competence
➢ Good communication skills and pleasant personality

Compensation

Managers and bookkeeper of the Pick-zza, who are also owners of the company, will
receive the appropriate sharing of net income as specified in the Articles of Partnership. A salary
is given to a partner for his or her active management participation in the business. The
employees of the production and operation department will receive the daily minimum wage rate
of Php 537 or Php 16110 per month.

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IV. ORGANIZATIONAL STRUCTURE, OWNERSHIP, AND INTELLECTUAL

PROPERTY

Ownership

The form of business is a partnership and all partners are responsible for the management
of the business. Moreover, they are jointly and severally liable for all the debts of the company.
Pick-zza will be established with six partners initially namely Gabriella Guevarra, Sean Adrian
San Pedro, Dhana Lyn Sinlao, Cristine Sinnung, Jenny Sudaria and Angelo Viray. Each partner
has his or her own position in the company.

Organizational Structure

Intellectual property

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Pick-zza trademark will be registered in the Intellectual Property Office of the Philippines
to protect the company’s rights and so our products be easily distinguished by customers from
other competitors.

V. INDUSTRY ANALYSIS

Industry Description
The industry analysis has been done to analyze the strengths and weaknesses of Pick-zza
to take advantages of opportunities, as well as, to minimize the impact of threats. Thus, a SWOT
analysis has been carried out.

STRENGTHS WEAKNESSES
· Emphasizes customer’s satisfaction · Unestablished reputation
· Budget-friendly meal · Confined store space
· Several flavors to choose · Limited number of customers can dine-in
· Made-to-order · Limited equipments
· Home delivery

OPPORTUNITIES THREATS
· Market expansion · High competition in located store
· Additional menu options · Known and established eateries with similar
· Brand recognition products
· Can establish food app · Customer loyalty to other brands
· Additional top branded ingredients · Products are highly imitable
· Upgraded equipments · Inflation rate in products used as ingredients

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Institute of Accounts, Business and Finance

Target Market
Pick-zza o will focus its marketing activities on reaching the University students, faculty,
and people working in offices located around University belt. We focus on these groups because
these are the types of people who are mostly in the area. Since pizzas are go-to food, a lot of
people will be interested in our product as we offer a customize pizzas that will satisfy
customer’s preferences. Proximity to the Universities will provide access to the targeted
customer audience.
Pick-zza will cater to people who are seeking affordable meals to eat. Such customers
will vary, but since our location close to the University campus, most of our clientele will be
college students and faculty. As these people mostly eat during their break time, we can pique
their interest in our product by offering customized pizzas that are both affordable and delicious.

Competitor Analysis
The success or failure of any food organization depends on the ability to provide greater
customer value and satisfaction than competitors. The competitors of Pick-zza are mainly Pizza
Hut, Yellow Cab, Greenwich, Shakey’s, and Domino’s Pizza. These are all known and
established pizza stores in university belt area. Information about the competitors’ price and
offerings will be gathered to be able to use these for comparisons when deciding on their
marketing strategies

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Institute of Accounts, Business and Finance

VI. MARKETING PLAN

Product Strategy

Pick-zza will give you freedom to choose what’s on your pizza from the dough to use up
to toppings to put on it. We’re offering a standard size of pizza that can be consumed by one
person since this is personalize or customize that is 8 inches in size and 15 kinds of toppings
namely: pepperoni, mozzarella, mushroom, bacon, garlic, white onion, pineapple, black olives,
ham, green bell pepper, red bell pepper, barbeque sauce, Italian Sausage, salami, and beef.
Additionally, our menu will include soda and iced tea.

Pricing Strategy

Getting pricing right is vital. Since we do it personalized and we let our consumers priced
their pizza, we will use cost based pricing strategy where prices are cost plus small markup.
Consumer also can see the kinds of toppings with their pricing. They can build out the ideal
pizza that still fits into their budget.

Marketing And Communication strategy

The following are Mediums of communications will be used:

· Social Media (Instagram, Twitter, and Facebook)

· Word of Mouth

· Brochures/Flyers

Promotional Strategy

Pick-zza can increase its awareness by offering promotional activities. The business can
offer customers the opportunity to purchase a pizza at regular price and get a second pizza with 2
free toppings. This would allow the customers to experiment more, discover new flavors of pizza

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that surely they would want because it is them who made it for a slightly reduced price. This
kind of promotion will give customers an incentive to order more than one pizza and will
generate more revenue for the business.

Another promotional discount that can increase awareness of the business is to have a
“Student day” since we’re surrounded by universities, the students can show their school id and
receive a 10% discount on their pizza. Doing this can get them more willing to try our pizza.
Adding to this, we can use social media to spread our brand by giving a promotional discount to
those people who will like, follow, and share our twitter, instagram, and facebook page.

Other Promotional Strategies would be:

● Occasional Party Promos (Christmas Promos, Valentines Day Promo, Halloween Promo)
● Hotline number for ordering pizza.
● Loyalty Card
● Coupons

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VII. OPERATIONAL PLAN

The primary objective of our business organization is to provide customer high quality
and distinct product. Our company’s competitive advantage is that customers get to choose their
preferred ingredients to their favorite pizzas.

Competitiveness Customization of pizza

Price Price varies to the ingredients being put in a

specific order

Location Along the street of Padre Campa, Sampaloc

Manila

Quality Customer oriented

Process technology Computerized placing of orders

Human Resource Knowledgeable and skilled workers

Supply chain management Close alliance with supplier to benefit from

credit policies

Inventory Stock level varies based on demand

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Packaging Floor plan

Inventory

How much inventory level should be kept in the stock room? (Maximum level of inventory)
At what inventory level do we place a purchase order for new stocks? (Minimum level of inventory
“trigger point where to order”)
When to increase the level of inventory in our stock room?
The increase in stock levels varies depends on the increasing demands of our product.
An example of 20% increase in weekly demand

Stocks Maximum Minimum Increase in maximum stock (20%)

Pizza dough 100 pieces 30 pieces 120 pieces

Pepperoni 10 kilogram 2 kilogram 7 kilogram

Black olives 3 kilogram 1 kilogram 4 kilogram

Mozzarella 10 kilogram 3 kilogram 12 kilogram

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Beef 4 kilogram 1 kilogram 5 kilogram

Salami 12 kilogram 5 kilogram 14 kilogram

Hungarian 12 kilogram 5 kilogram 14 kilogram

sausage

Pizza cheese 10 kilogram 2 kilogram 6 kilogram

Ham 10 kilogram 3 kilogram 12 kilogram

Bacon bits 8 kilogram 3 kilogram 10 kilogram

Green bell pepper 2 kilogram 500 gram 2500 gram

Red bell pepper 2 kilogram 500 gram 2500 gram

Mushroom 2 kilogram 500 gram 2500 gram

Pineapple 10 kilogram 500 gram 2500 gram

Garlic 3 kilogram 500 gram 2500 gram

White onion 5 kilogram 500 gram 2500 gram

Pizza box 100 boxes 30 boxes 120 boxes

BBQ sauce 1 kilogram 300 gram 1200 gram

Tomato sauce 1 kilogram 300 gram 1200 gram

Sweet chili sauce 1 kilogram 300 gram 1200 gram

Plastic cup 100 pieces 30 pieces 120 pieces

Lemon 70 pieces 20 pieces 80 pieces

Apple 70 pieces 20 pieces 80 pieces

VIII. FINANCIAL PLAN

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IX. CRITICAL RISK FACTORS

Supply chain risk

These includes include cost volatility, material shortages, supplier financial issues,
natural and manmade disasters, and unpredictable customer demand. These can lead to a loss of
income, and can affect the quality and volume of outputs to be produced. Hence, we have
anticipated these uncertainties and come up with some practical actions. First, there should be a
list of authorized suppliers which can be contacted and purchase the same or almost the same
quality and price of materials. Second, a fixed price agreement must be made to avoid cost
volatility. Third, we must include supplier performance information in our analysis for insight
into potential financial issues. Lastly, we must have safety stock inventory to mitigate risk of
stock outs.

Food health safety risk

One of the biggest risks associated with the food industry is health. To avoid cases of
food contamination and spoilage, safety procedures must be done like providing the employees
the knowledge of proper handling and preparing of food and considering employees' hygiene.
Also, some raw materials need to be stored at certain temperatures, expiration dates must be
monitored, and maintaining cleanliness of facilities.

Equipment risk
Equipment breakdown results to discontinuance of operations, terrible accidents such as
fire, loss of income and eventually loss of customers if such happens frequently. This can be
prevented by communicating to the employees the proper way of using them. In addition, regular
inspection and preventive maintenance are done to ensure safety and smooth operations.

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