INTRODUCTION

In organizing a business, it is always pertain that it contributes to the betterment of the society. It should be guided by business principles, procedures and policy. If the product is based on customers desires or wants, surely the business that will introduce to the community will exists. Planning should be done carefully because it is an important part in putting up a business, it is better to know the requirements, the needed materials on how to run a business. You need to determine the kind of business you would want to operate in the future. This plan gives details of the proposed venture, along with expected needs and results. In addition, it must take into about the unique nature of the electronic commerce. Eventually, the plan to establish a supermarket is not just for the proponents benefits and pleasure but for the goodness of the society because it adds choices to people. Every week thousands of shoppers in supermarkets come and go. Theyre a part of our landscape and a part of our weekly schedules. They have brought affordable foods to all, increased the range of foods that was eat, and considerably reduced the time we spend shopping and preparing foods. The supermarket typically comprises frozen and baked goods departments, along with shelves spaces reserved for canned and packaged goods as well as for various non-food items such as household cleaners and pharmacy products. Other advantages include ease of parking and frequently the convenience of shopping hours that extend far into evening. Starting a grocery store business may pose as challenge if you are not equipped with proper information. The business has several aspects that you need to focus on and study if you want your efforts to yield results; i.e. knowledge of marketing management, finance accounting, information technology and other pertinent details in operation.

OBJECTIVES

To cater the customers a complete set of products To promote goods at a very reasonable & competitive prices To engage the business venture into total quality and affordability of services

BRIEF DESCRIPTION The AMICIZIA SUPERMART is offering consumable items at very reasonable and competitive prices. The business is duly registered with the local government, and will be engaged as a supermart; following the rules and regulations recommended by the Department of Trade and Industry and Bureau of Internal Revenue. The AMICIZIA SUPERMART will have a ground floor dimension of 450 sq. meters and parking lot of 150 sq. meters. The store is situated near a residential area and along the national highway Santiago City in order to be more convenient to consumers. Its basic appeal is the availability of a broad selection of goods under a single roof, at relatively low prices.

NAME OF THE FIRM The business will be registered under the name Amicizia Supermart. Amicizia is love , an Italian word for friendship. Trust and relationship is an acid test of friendship. The business will be registered as partnership. In contract of partnership, two or more person binds themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profit among themselves. The proponents decided to form the business as partnership because this sort of business requires huge financial resources: this may also enhance the capabilities of the partners to manage their own firm.

PROJECT COST/ SALARIES EXPENSE/ ADMINISTRATIVE EXPENSE

Position Bookkeeper Organizer/Dicer Cashier and Bagger Storeroom Personnel Guard Total

Labor Required 10 8 5 2

Monthly Salary 1500 79,560 53,040 33,150 15,600 182,850

Annual Salaries Expense 18,000 954,720 636,480 397,800 187,200 2,194,200

Legal Expenses Compliance Fee Business Permit Barangay Clearance BIR DTI SEC Mayors Permit Total 4,000 5,220 6,000 500 500 3,000 2,200 21,420

Miscellaneous Expense Give away Raffle Prices Total 10,500 20,000 30,500

Utilities Expense Description Electricity Telephone Water Total Installation 2500 2,200 4,700 Monthly Expense 14,000 1,999 700 16,699 Yearly Expenses 168,000 23,988 8,400 200,288

Equipments

Cash Drawer and Bar Code Readers Software(sales & stock management) Generator 20,000 1 20,000 Fire Extinguisher 10,000 2 20,000 Net Book 13,500 2 27,000 CCTV 17,432 5 87,160 Air Conditioner 14,899 4 59,596 Freezer 23,200 3 69,600 Carts 990 50 49,500 Baskets 50 100 5,000 Total 436,856 Sources: The prices are come from Willy and Sons, K Servico and Target display.com

Unit Cost 15,800 20,000

Number of Units 5 1

Total 79,000 20,000

Supplies Expense Description Plastic bags-small Plastic bags-tiny Plastic bags-medium Plastic bags-large Clock Stapler Padlock Frame for permits Lucky charm fountain Rechargeable lamp Filing case Trash Can Packaging straw Door mat Broom and dust pan Mop Uniform Unit Cost 24.75 13 69.75 95 135 32 190 55 820 775 275 78 200 80 130 120 220 Quantity Requirement (month) 50 50 60 70 1 unit every year 2 6 4 1 2 2 12 units yearly 20 12 units yearly 12 units yearly 2 25 Total 1237.5 650 4,185 6,650 135 64 1,140 220 820 1550 550 936 4,000 960 1560 240 5,500 Yearly 14,850 7800 50,220 79,800 135 768 13,680 2640 820 18,600 6,600 936 48,000 960 1560 2880 66,000

Convex mirror 416.70 Total Sources: Unitop and Puregold

3 units yearly 30,397.5

1250.1 66,000

Furniture and Fixtures These stuffs are well-suited on the great atmosphere of the store. This adds sociable effects to everyone. Description Office table Office chairs Filing cabinet Sofa Shelves and counters Total Depreciation Expenses Description Office table Office chairs Filing Cabinet Sofa Shelves and counters Cash drawer & bar code readers Software (sales & stock management) Generator Fire extinguisher Net book CCTV Air conditioner Freezer Carts Baskets Building Total Useful life 5 5 1 5 15 5 10 5 5 5 5 10 10 5 5 20 Total 3,895 15,300 1,275 9,400 750,000 79,000 20,000 20,000 20,000 27,000 34,864 59,596 69,600 49,500 5,000 3,461,922. 44 4,626,422. 44 Salvage Value 1000 1,000 10,000 1,000 1,000 1,000 1,000 1,000 1000 1,000 10,000 29,000 Depreciable amount 3,895 14,300 1,275 8,400 740,000 78,000 20,000 19,000 20,000 26,000 33,864 58,596 68,600 48,500 5,000 3,451,992.4 4 4,597,422.4 4 Annual Depreciation 779 2,860 1,275 1,680 49,333.33 15,600 2,000 3,800 4,000 5,200 6772.80 5859.60 6860 9,700 1,000 172,599.62 289,319.36 Unit Cost 3,895 2,550 1275 9,400 750,000 Quantity 1 6 1 1 1 Total 3,895 15,300 1275 9,400 750,000 779,870

PRODUCT(S) The retail industry is one of the fastest growing industries today and is considered as a vital part of our economy. The chief purpose of this industry is to provide goods and merchandise to customers. They get their products straight from the manufacturer or via a wholesaler or distributor. Ultimately, these products are sold to customers for consumption. These goods are vast and varied. Retailers may sell anything and everything from groceries to frozen goods and so on. A grocery store for the most part offers food (both fresh and dry) and other household essentials.

MARKET DESCRIPTION The products to be sold are grocery items and frozen goods which are considered as basic necessity for every household. With the fast growing population which can be visibly seen from the data of the National Statistics Office it is assumed by the proponents that the enterprise will soon expand its product lines and increase its inventory level. Actually, there is a grocery stores exist nearby. But it is not conducive enough to cope up with demand of the people in the perspective residents of Santiago and nearby municipalities such as Cordon, Ramon, San Isidro and Echague. This also includes students from Isabela State UniversitySantiago, Northeastern College, University of La Salette and Patria Sable Corpuz College as well as by passers. Population as of 2012(Estimated) Municipalities Santiago Cordon San Isidro Echague Total MARKETING STRATEGIES Earning of points Raffle draws Gifts during Christmas and New Year Population 25,500 15,670 20,239 30,020 91,429

MARKET CONCEPTUALIZATION The supermart is bound to make difference toward customers satisfaction to reinstate them from unpleasant atmosphere, unsystematic products, limited parking space and unfavorable sanitation. To allure the customers with products on hand by giving the best markup prices.

Organizational Chart LINE ORGANIZATIONAL STRUCTURE OF AMICIZIA SUPERMART

PARTNERS

BOOKKEEPER

DICER / ORGANIZER R

CASHIERS R R BAGGERS R

STOREROOM PERSONNEL R

SECURITY GUARD

The straight lines represent a direct relationship to the partners while the broken lines denote indirect link to the management since, the bookkeeper is on a contractual basis.

MANPOWER/PERSONNEL Managing Partner - the managing partner will be responsible for data entry, accounts payable, payroll, grant report entry, managing the organizations activities. Bookkeeper - one that prepares and maintains accuracy and reliability of financial matters and fax reports. Cashiers persons reliable for issuing receipts and admits customers payment. Baggers assist the cashiers and responsible in packing the goods acquired. Organizers they are the persons who are responsible for the arrangement of all the goods. Guards responsible for securing safeties.

DUTIES AND RESPONSIBILITIES Managing Partner Improve the operational systems, processes and policies to support organizational success.(i.e. better management reporting, information flow, business processes and organizational planning) Manage and increase the effectiveness and efficiency of support services (finance). Oversee financial management, planning, systems, and controls. Do the purchasing process. Payroll management. Disbursement of checks expenses. Regular meetings with the partners around fiscal planning. Workers Responsible in organizing merchandise products and securing sanitation. Responsible in assisting customers

Qualifications in hiring employees a. Bookkeeper At least graduate or college level Must have the knowledge and experience in accounting With values of honesty, loyalty and integrity

b. Cashiers At least high school graduate or college level 18-25 years old; female only With value of honesty and loyalty With good moral character Must be hardworking Must be computer literate. c. Storeroom Personnel/Baggers/Dicers(Organizers) At least elementary or high school level 18-25 years old; male only Physically fit With value of honesty and loyalty With good moral character Must be hardworking Must have the willingness to learn and have a good comprehension skills d. Guards At least high school or college level 22-28 years old; male only Physically fit and martial arts literate With value of loyalty, honesty and good moral character Must be an agency based

Compensation The organizers, baggers and storeroom personnel will have a salary of Php225 per day; cashiers accumulates 305, guards will have a salary of Php300 per day and the accountant will receive Php1500 for at least once a month visit.

Position Bookkeeper Organizers/Dicers Cashiers Storeroom Personnel Guards Baggers

Salaries per month Php1,500 6,630 7,930 6,630 7,800 6,630

Number of employee 1 10 8 5 2 8

Return on Investments Year 1 738,021.86 Year 2 1,043,529.06 Year 3 1,319,879.76 Year 4 1,668,072.73 Year 5 2,006,877.77

Net Income Divided By Total Assets Return on Investment

12,166,757.89 12,535,768.88 13,057,533.35 13,717,473.23 14,551,509.59 0.06 0.08 0.10 0.12 0.14

In yearly operation of the business it shows that the profit margin fluctuates. The profit margin accumulates 18%, 23%, 26%, 30% and 33% respectively. The net turnover on asset accumulates 6% on the first year and 8%, 10%, 12%, 14% on the second to fifth year. Thus, profit and return on investments is very satisfying.

Summary of Project Cost Initial Capital Requirement Operating Expenses Office Supplies Expense Utilities Expense Permits and Licenses Expense Salaries Expense Payment of Miscellaneous Merchandise Inventory Total Pre-Operating Expenses Purchase of Land Building Cost Purchase of Furniture & Fixtures Purchase of Machineries & Equipment Payment of Legal Requirements Initial Capital Requirement Source of Funding Year1 346,251.40 205,088 7,240 2,194,200 30,500 23,665,966.42 Monthly 28,854.28 17,090.67 603.33 182,850 2,541.67 1,972,163.87 x3 months 3 3 3 3 3 3 Total 86,562.85 51,272 1,810 548,550 7,625 5,916,491.60 6,612,311.45 900,000 3,461,992.44 779,872 396,560 16,022 12,166,757.89

The initial capital will come from the investments of the partners and loan from bank. The investments from the partners would be Php12,166,757.89. Michael Wendell Cabaccan, Lilibeth Rumbaoa, Abegail Dela Cruz, Fredeliza Espiritu, Angelique Villanueva, Donita Rose Javier, Rose Valen Concepcion, Rozel Panganiban with 20%, 20%, 10%, 10%, 10%, 10%, 10%, 10% respectively.

Michael Wendell Cabaccan Lilibeth Rumbaoa Abegail Dela Cruz Fredeliza Espiritu Angelique Villanueva Donita Rose Javier Rose Valen Concepcion Rozel Panganiban Total

2,433,351.578 2,433,351.578 1,216,675.789 1,216,675.789 1,216,675.789 1,216,675.789 1,216,675.789 1,216,675.789 Php12,166,757.89