A corporation headed by five members Essay
A corporation headed by five members
Fahrenheit Technologies is a corporation headed by five members, all of whom are shareholders and primary members of the Board of Directors. Established in 2012, these five members who have developed a bond in their college years, decided to combine their diverse set of skills and go into business together. Thus, Fahrenheit Technologies was born. We decided upon that name because our carrier product is the “Thermo-Mug” – a travel mug/tumbler that can keep your hot beverage warm for much longer than a regular tumbler thanks to its re-heating feature. We also have plans for other innovative heating appliances in the future, which is why we felt that our company name “Fahrenheit” was appropriate.
Key Business Operations:
We will provide our customers with products positioned as innovative, functional in purpose, distinctive in quality and design and not widely available from other retailers. We aim to produce the highest quality products to our market as efficiently as possible. The company shall operate in the Ortigas business district but can also offer transactions outside the metro. Fahrenheit Technologies will be headquartered in 778 B, Mahogany Street, Octagon Village, Barangay Dela Paz, Pasig City. Aside from our headquarters being an industrially conducive environment, it is also close to our operational area. Along with catering to other businesses from our headquarters, we also have plans to expand Fahrenheit Technologies by having small, physical stores in places such as malls and plazas in order to be able to offer our products to a wider audience.
Our labor force includes employees and workers under their respective departments, supervised by 4 Directors as department heads. In Finance, we plan to employ 1 certified public accountant. In Marketing/Sales, we will be assisted by 1 other employee while in Human Resource/Administration, 2 more employees will be hired. The concentration of our employees (10) is situated in our Operations/Quality Control department. (19total)
Type of Business:
Fahrenheit Technologies is a corporation that primarily caters to other businesses. The members of this corporation are headed by the aforementioned five major shareholders and 17 employees in totality. As a corporation catering to other businesses, we can eliminate the middle man and overcome mediating expenses, which in turn reduces overall cost. Also, with today’s technological advancements, it is getting easier and cheaper to conduct business with platforms such as E-commerce. With the B2B marketing strategy, we lower the cost for both selling and marketing, which in turn, maximizes our capital.
Also called B to B or B2B – these are a type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. This is in contrast to business to consumer (B2C) and business to government (B2G). A typical supply chain involves multiple business to business transactions, as companies purchase components and other raw materials for use in its manufacturing processes. The finished product can then be sold to individuals via business to consumer transactions.
An example that illustrates the business to business concept is automobile manufacturing. Many of a vehicle’s components are manufactured independently and the auto manufacturer must purchase these parts separately. For instance, the tires, batteries, electronics, hoses and door locks may be manufactured elsewhere and sold directly to the automobile manufacturer. In the context of communication, business to business refers to methods by which employees from different companies can connect with one another, such as through social media. This type of communication between the employees of two or more companies is called B2B communication.
Fahrenheit Technologies uses horizontal organizational chart. A business that is structured as a flat or horizontal organization is where power is shared more broadly and tends to allow staff more control over business matters according to their expertise, and often supportive of considerable collaboration between employees. It is, in essence, a decentralized power structure among the 4 main department heads and the president.
The president of the business will be Victor Ros, whose responsibilities include creating, communicating, and implementing the organization’s vision, mission, and overall direction, leading, guiding, directing, and evaluating the work of other executive leaders including directors, formulating and implementing the strategic plan that guides the direction of the business, forming, staffing, guiding, leading, and managing the organization sufficiently in order to accomplish the strategic plans of the business. He also oversees that the budgets and resources are properly allocated and ensures the complete operation of Fahrenheit Technologies in accordance with the direction established by the board. Lastly, he is the one who is held responsible for overall accountability to shareholders and the general public.
Operations director will be Harold Bautista whose duties include assuring that our products meet the highest safety and quality standards. He understands the goals of the organization and develops a clear vision of exactly how operations will help achieve them. This also involves translating these goals into implications for the operation’s performance, objectives, quality, speed, dependability, flexibility and cost. He oversees the daily operations in assembly and is in charge of inspections of products and parts purchased from our suppliers, as well as keeping records of supplier performance. He also plans and directs activities concerned with development, application, and maintenance of quality standards for industrial processes, materials, and products.
The Finance Director is Gerone Santos who is responsible for providing the flow of financial information to the president, the board and, where necessary, external parties such as investors or financial institutions. His main responsibilities include overall control of the corporation’s accounting functions, transactions and accountancy matters, including audit systems. He also is in charge of formulating financial targets and budgets, manages company policies regarding capital requirements, debt, taxation, equity and acquisitions, as appropriate. Also, aside from preparing annual accounts, he is also responsible for ensuring that the regulatory requirements of all statutory bodies are met regarding all the corporation’s financial affairs.
Human Resource Director will be Kevin Dela Torre whose main responsibilities include ensuring the smooth and profitable operation of the company’s human resources department. He supervises and provides consultation to management on strategic staffing plans, compensation, benefits, training and development, budget, and labor relations.
He is also expected to take a leadership role in developing a culture that enables employees to perform in accordance to a firm’s objectives. Furthermore, he is also in charge of the effective planning, designing, developing and evaluating human resource-related initiatives that support organizational strategic goals. In addition, he also leads performance management, talent assessment and effective labor relationships, including negotiating and administering labor agreements. Our HR director will also supervise staff and report to the president on issues regarding implementation of policies and procedures, safety of the workforce, recruiting and hiring high-performing employees, and labor, legislative and other human resources issues.
The Marketing Director is Francisco Andres whose responsibilities are boosting the sales of the company’s services and products by establishing brand recognition, optimization of the corporation’s market share using research on the competition comes and making sure that Fahrenheit Technologies is one step ahead in innovation and marketing.
He is also in charge with annual marketing plans and supervising these plans so that they come to fruition. In addition, he also helps promote a positive image of the corporation not only to the consumers but within the company itself, he increases or maintains positive levels of customer satisfaction by providing impeccable customer support thru customer relationship management (CRM). He is also responsible for reviewing existing plans and strategies to make sure that we remain competitive and at par, even more, with your competitors. Finally, he reports the progress of any marketing strategy or plan that is ongoing and makes sure that all these plans and strategies are in line with the Fahrenheit Technology’s goals.
Business Permits and Application
1. Verify and reserve the company name with the Securities and Exchange Commission (SEC) that will take 1 day and PHP40 2. Deposit paid-up capital in the Authorized Agent Bank (AAB) and obtain bank certificate of deposit 1 day no charge 3. Notarize articles of incorporation and treasurer’s affidavit at the notary 1 day PHP500 4. Register the company with the SEC and receive pre-registered Taxpayer Identification Number (TIN) The SEC Head Office issues pre-registered TINs only if the company’s application for registration has been approved.
The company must still register with the Bureau of Internal Revenue (BIR) in order to identify applicable tax types, pay an annual registration fee, obtain and stamp sales invoices, receipts and the books of accounts. 3 days (PHP 1,926.44 filing fee equivalent to 1/5 of 1% of the authorized capital stock or the subscription price of the subscribed capital stock, whichever is higher but not less than PHP 1,000 + PHP 19.26 legal research fee (LRF) equivalent to 1% of filing fee but not less than PHP 10 + PHP 500 By-laws + PHP 150 for registration of stock and transfer book (STB) required for new corporations + PHP 320 STB + PHP 10 legal research fee for the By-laws)
5. Obtain barangay clearance 1 day PHP 500
6. Pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer’s Office (CTO) 1 day PHP 400
Business Permits and Application
The company is assessed a basic and an additional community tax. The basic community tax rate depends on whether the company legal form is a corporation, partnership, or association (PHP 500 or lower). The additional community tax (not to exceed Php 10,000.00) depends on the assessed value of real property the company owns in the Philippines at the rate of Php 2.00 for every Php 5,000.00 and on its gross receipts, including dividends or earnings, derived from business activities in the Philippines during the preceding year, at the rate of Php 2.00 for every Php 5,000.00. 1 day PHP 500 7. Obtain the business permit to operate from the BPLO
The fees vary depending on the LGU issuing the permit. The rate of license fee imposed in Quezon City is 25% of 1% of the authorized capital stock. Other permits, such as locational clearance, fire safety and inspection certificate, sanitary permit, certificate of electrical inspection, mechanical permit, and other clearances or certificates required depending on the nature of business, are also imposable.
The rate of these fees depends on the nature of business and land area occupied by the proposed corporation. The barangay clearance is a prerequisite for the issuance of business permit to operate. 6 days (PHP 2,408.05 business tax (25% of 1% of paid-up capital) + PHP 200 mayor’s permit + PHP 150 sanitary inspection fee + PHP 50 signboard fee + PHP 300 business plate + PHP 100 QCBRB + PHP 545 zoning clearance + PHP 1,300 garbage fee+ PHP 300 FSIC (10% of all regulatory fees)) 8. Buy special books of account at bookstore
Special books of accounts are required for registering with the BIR. The books of accounts are sold at bookstores nationwide. One set of journals consisting of four books (cash receipts account, disbursements account, ledger, general journal) costs about PHP 400.
Business Permits and Application
9. Apply for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR) The requirements for application for COR with the BIR are:
a. Duly accomplished and filled-out BIR Form No. 1903 (Application for
Registration for Corporations);
b. Payment Form (BIR Form No. 0605); c. SEC Certification of Incorporation; d. Articles of Incorporation and By-laws; e. Contract of Lease (with BIR Form No. 2000 and supporting BIR Payment Form as proof of payment of documentary stamp tax on the lease agreement); f. Documentary Stamp Tax Return (BIR Form No. 2000) on the original issuance of shares and Payment Form (for the DST payment); and g. Mayor’s Permit/Business Permit Application (duly stamped received by the Business Licensing Division of the local government of Pasig City).
2 days PHP 100 (certification fee) and PHP 15 (documentary stamp tax, in loose form to be attached to Form 2303) 10. Pay the registration fee and documentary stamp taxes (DST) at the AAB The rate of documentary stamp tax on original issuance of shares of stock shall be Php 1.00 for every Php 200.00 or fractional part thereof, of the par value, of such shares of stock. The documentary stamp tax return shall be filed and the tax paid on or before the fifth (5th) day after the close of the month of approval of SEC registration. 1 day (PHP 500 registration fee + PHP 4,169.97 DST on original issuance of shares of stock. DST on the lease contract is not included in the computation of the cost) 11. Obtain the authority to print receipts and invoices from the BIR
Business Permits and Application
a. Duly completed application for authority to print receipts and invoices (BIR Form No. 1906); b. Job order; c. Final and clear sample of receipts and invoices (machine-printed); d. Application for registration (BIR Form No. 1903); and e. Proof of payment of annual registration fee (BIR Form No. 0605). 1 day no charge 12. Print receipts and invoices at the print shops
The cost is based on the following specifications of the official receipt: 1/2 bond paper (8 ½ x 5 ½ cm) in duplicate, black print, carbonless. The minimum print volume is 25 booklets. 7 days PHP 3,500 13. Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR a. All required books of accounts; b. VAT registration certificate; c. SEC registration; d. BIR Form W-5; e. Certified photocopy of the ATP; and f. Notarized taxpayer-user’s sworn statement enumerating the responsibilities and commitments of the taxpayer-user. The company must also submit a copy
of the PCD to the BIR RDO having jurisdiction over the printer’s principal place of business. 1 day no charge 14. Register with the Social Security System (SSS)
To register with the SSS, the company must submit the following documents: a. Employer registration form (Form R-1); b. Employment report (Form R-1A); c. List of employees, specifying their birth dates, positions, monthly salary and date of employment; and d. Articles of incorporation, by-laws and SEC registration.
Business Permits and Application
Upon submission of the required documents, the SSS employer and employee numbers will be released. The employees may attend an SSS training seminar after registration. SSS prefers that all members go through such training so that each member is aware of their rights and obligations. 7 days no charge 15. Register with the Philippine Health Insurance Company (PhilHealth) To register with PhilHealth, the company must submit the following documents: a. Employer data record (Form ER1); b. Report of employee-members (Form ER2); c. SEC registration; d. BIR registration; and
e. Copy of business permit. Upon submission of the required documents, the company shall get the receiving copy of all the forms as proof of membership until PhilHealth releases the employer and employee numbers within three months.1 day no charge 16. Register with Home Development Mutual Fund (Pag-ibig) To register with the HDMF, the corporation must submit the following documents: a. Employer’s Data Form (EDF [FPF040]); b. Specimen Signature Form (SSF[FPF170]); c. Copy of SEC Certificate of Incorporation; d. Copy of Approved Articles of Incorporation and By-laws; and e. Board Resolution or Secretary’s Certificate indicating the duly designated Authorized Representative. Upon submission of the complete documents and payment of the first contribution to the fund, the Pag-IBIG will issue the HDMF number and the HDMF Certificate of
Salaries & Benefits:
The Chief Officers decides not to have dividend that will worth their hard work and investments since the company is on its starting stage. They decided to recover it until the company start getting to be more profitable than on its starting stage. Every Assistants’ salary is based on the Philippines’ standard and will continuously have an increase as they get promoted based on their performance. The personnel is earning the minimum wage pay in Metro Manila and will also have benefits as the law mandated. The laws on labor standards and employment relations are consolidated in the Labor Code of the Philippines.
The salient points of employment conditions and employee benefits under the Philippine labor laws are as follows: Fahrenheit Technologies is giving benefits to their employees as it is mandated by the law. The following are the benefits given by the company as required by the law: 13th month pay, Social Security System (SSS), Philippine Health Insurance (PhilHealth) contributions, Home Development Mutual Fund (Pag-ibig Fund) contributions, overtime pay, special holiday/rest day rates, meal and rest periods, and service incentive leave. Other than that, the company is also giving a benefit which is non-mandated by the law, the Christmas Bonus. Social Security System (SSS)
Since Fahrenheit Electronics is a private company, they are required to be a member of SSS (Republic Act No. 8282). Social Security Systems aims to protect its member when they are out to source income or when they are unable to work such as sickeness, maternity, after retiring age (meaning, no source of income already), death and other situation where it will result to financial problem. Philippine Health Insurance (PhilHealth)
The Philippine government has its medical insurance company, the Philippine
Health Insurance or the PhilHealth. Every employee is required to be contributor on this service (Republic Act 7875). Members and its dependent are given health and hospitalization aids by this organization. Home Development Mutual Fund (Pag-ibig Fund)
The Fahrenheit Electronics employers are also contributing to Pag-ibig Fund (Republic Act 7835) in behalf of their employees. The Home Development Mutual Fund is providing the lowest interest housing and land acquisition it its members that can be payable up to thirty (30)
Salaries & Benefits:
years. This gives every Filipino an opportunity to acquire their own home by directly deducted from their monthly wages and or salaries. 13th Month Pay
All Filipino employees are entitled to have a year-end bonus that has the equivalent of a one (1) month salary. It is regardless on the nature of employee’s employment and it should be given every year. As it is based on the Presidential Decree No. 851, the Fahrenheit Electronics gives its 13th month pay not later than the 24th of December. Overtime Pay, Holiday Pay and Rest Day Rates
Fahrenheit Electronics’ employees are rendering eight (8) hours of service per day and if it exceeds, that will be given overtime pay and will be equivalent to the employee’s regular hourly wages plus at least twenty five percent (25%) under Article 87. However, if the company ask their employee to work on their scheduled rest day, particularly Sunday, and on a non-working holiday, the company will be paying them additional compensation at least thirty percent (30%) of his regular wage under Article 93. Meal and Rest Periods
The company is giving one (1) hour break for their meals, particularly on Sunday. The company also gives rest periods particularly 15 minutes in the morning and afternoon. These short periods of time is counted as hours worked and it is use for employees to have their coffee and or snack breaks. Service Incentive Leave
If the company’s employee has worked for at least one (1) year, they are entitled to have five (5) days leave of absence, with pay, every year. If the employee does not avail those paid leaves, the company can made it mandatory or that leave can be converted to cash equivalents and will be given at the end of the year. Christmas Bonus
Of course, it will be given on December before the Christmas Eve. This will be the Fahrenheit Electronics Christmas gift to their employees.
Hiring of Personnel:
To become an employee of the Fahrenheit Electronics, an applicant goes though some or all of the following phases of the hiring procedures. 1. For employment application, an applicant fills out a Personnel Data Sheet which he/she signs to attest to the truth and accuracy of the information given. This form, available at the Human Resource and Development Office (HRDO), serves as the employee application form which, upon employment, becomes part of the employee’s file with the office. All information on the Personnel Data Sheet is subject to verification and the company reserves the right to dismiss an employee found to have falsified data. 2. A preliminary interview is conducted and a reference checking is made by gathering relevant information from the references given by the applicant in the Personal Data Sheet. 3. A set of employment tests is given to the applicant who passes the preliminary screening.
These are the standardized psychological test and skills tests administered by the Administration Office (AO). The test results will help indicate if the applicant is suited for the job. Test results are confidential and may not be shown to applicants or to unauthorized persons. 4. NBI and Police Clearances are required from an applicant who is considered for a job. These clearances are to be forwarded to the HRDO. 5. A medical examination/clearance is also required. The medical examination consists of a physical examination like chest x-ray and a Hepa-B examination.
Hiring of Personnel (continued)
6. Finally, an interview is conducted by the supervisor of the HRDO. Upon the
supervisor’s recommendation, a temporary or probationary appointment shall be issued. 7. Screening Process for Hiring Purposes. This last step includes final considerations including: Review of application letter, resume, clearances, Transcript of Records Interview by the HRDO head
Psychological test by the HRDO Director
Second level decision based on results of test by the HRDO Director HRDO reviews medical and other requirements
Final decision by the office concerned
Most employees are nervous on the first day of a new job. We make this transition easier by conducting a detailed orientation program. This lifts the burden from the employee of having to figure things out on his own. It also sends a positive message to the employee about Fahrenheit Technologies’ organizational structure. Before the employee begins work, the human resources department or the employee’s manager is to contact him to answer any questions he may have concerning dress code, document requirements, where he should be on the first day and what time to arrive.
Fahrenheit Technologies will conduct its performance appraisals based on their employees’ output. This type of appraisal focuses on job products as the primary criteria. The most commonly used output-based appraisal is Management-by-Objectives (MBO). This specifies the performance goals that an individual hopes to attain within an appropriate length of time. The objectives that each manager sets are derived from the overall goals and objectives of the organization. Implementation of an MBO appraisal system is comprised of four basic stages. Job Review and Agreement: In the first phase the employee and the supervisor review the job description and the key activities that comprise the employee’s job. The idea is to agree on the exact makeup of the employee’s job.
Development of Performance Standards: Specific standards of performance must be mutually developed. This phase specifies a satisfactory level of
performance that is specific and measurable.
Guided Objective Setting: Objectives are established by the employee in conjunction with, and guided by, the supervisor. Objectives should be realistically attainable and may be different from the set performance standard.
Continuing Performance Discussions: The employee and the supervisor use the objectives as bases for continuing discussions about the employee’s performance. Although a formal review session may be scheduled, the employee and the manager do not necessarily wait until the appointed time for performance discussion.
This is a three dimensional (3D) rendering of our carrier product, the Thermo-Mug.
If you love hot drinks, you definitely want them to stay hot no matter where you go. The Thermo-Mug ensures that your coffee, hot chocolate or tea stays hot while you are out and about. There are so many options of travel mugs out in the market, but only our Thermo-Mug provides these benefits: Temperature-Control
Thermo-Mug is the only travel mug with a temperature control chamber. The chamber keeps hot beverages at the perfect sipping temperature. You no longer have to decide between burning your tongue or waiting until your beverage is too tepid to enjoy. And when your hot beverage starts to get cold, simply plug it into your car lighter or any USB port. The Thermo-Mug warms it back up in no time. When your coffee is the perfect temperature, it tastes its best. Locking Lid
Hot coffee in your lap is painful. Hot chocolate in your cup holder is a sticky mess. One of the benefits of the Thermo-Mug is its locking lid. Pour your beverage into it, screw on the lid and go. The Thermo-Mug ensures that your hot beverage stays where it belongs while you roll over potholes or run for the bus. Dropping your tea while you juggle your bags no longer means a wasted drink. Form & Function
Many travel mugs simply miss the mark in one way or another. The Thermo-Mug is ergonomically designed to fit snugly yet comfortably in your grip. The mug has a non-slip grip on its bottom and fits into all cup holders. Its 16-ounce capacity ensures that you have a cup for the smallest espresso to the tallest latte. Also, no fashion-forward person wants to carry a clunky, unattractive mug to work or school. Our Thermo-Mug comes with stylish stainless steel and chrome accents.
With these travel mugs, you can have your business logo and advertisement carried by many people wherever they go. Not only are they portable and long lasting, they make great walking billboards for your business’s brand. Our Thermo-Mugs are relatively inexpensive if bought in quantity. Even if they are bought in smaller amounts, they still function as cheap mobile advertising. There are not many promotional items that can last as long as printed travel mugs. As a business, you want your logo to work to its full potential. It needs to be eye-catching and easy to read. Being that coffee and tea are big parts of most people’s lives, using our Thermo-Mug with your logo on it ensures that people are always aware of your brand. They are an easy and great way to build up your name throughout your market sector. For Convenience
The most obvious use of a travel coffee mug is consuming hot beverages while out and about. It also minimizes
the chance of spilling your drink. You can also make coffee only once and store up to three servings in it. The insulation system of the Thermo-Mug will ensure that the coffee temperature is perfect for later consumption. For The Environment
Lots of companies are trying to move away from disposable items for the sake of being eco-friendly. The Thermo-Mug achieves this because they’re reusable, thereby fulfilling corporate responsibility. They are also energy efficient in that you don’t have to keep brewing coffee throughout the day.
Company Profile & Logo:
778 B, Mahogany Street, Octagon Village, Barangay Dela Paz, Pasig City
512-3640 / 0917-888-1218
Victor Ros, Francisco Andres, Harold Bautista, Gerone Santos & Kevin Dela Torre Branch Locations
Established in 2012, we produce consumer products that are innovative, functional, distinctive in quality and design and not widely available from other retailers.
Number of Employees
1 President, 4 Executive Directors, 4 in administration, and 10 in operations
– a total of 19.
Fahrenheit Technologies will be located in 778 B, Mahogany Street, Octagon Village, Barangay Dela Paz, Pasig City, housed in a two-storey building with a large assembly area, 4 offices, and a conference room.
The City of Pasig is one of the city-municipalities of Metro Manila and was the former capital of the province of Rizal prior to the formation of this grouping of cities designated as the National Capital Region. Located along the eastern part of Metro Manila, Pasig is bordered on the west by Quezon City and Mandaluyong City; to the north by Marikina City; to the south by Makati City, Pateros, and Taguig City; and to the east by Antipolo City. Pasig is primarily residential and industrial but has been becoming increasingly commercial in recent years. With its close proximity to the Ortigas Business District, our target market area, we’ve confirmed that this location serves our company the best.
Ortigas Center is a financial and central business district with an area of more than 100 hectares. It is Metro Manila’s second most important business district after Makati City. It is home to many shopping malls, call centers, office and condominium skyscrapers, other building complexes, nightlife bars and restaurants. It is surrounded by the streets of EDSA to the west, Ortigas Avenue to the north, Meralco Avenue to the east, and Shaw Boulevard to the south. All of these factors make Ortigas Center a prime location to introduce our product to the market.
The layout of our office, seen here, shows a large assembly area to the right. This is where most of our operations take place. In the middle you see our sales office at the bottom and directly above it is our Head Office bordered by our conference room used for meetings and planning and such. At the bottom left of this layout will be where our Human Resource and Accounting Office are placed. Above that will be our Marketing office. At the very left corner of this layout is the fire exit that leads outside. A x square meter space, we will be leasing this building for Php 50,000.00 per month.
-step by step
-ent res charts for manufacturing/production
Our workers have a total of 8 working hours including1:30 minutes break. An individual worker can assemble one mug in 20 minutes including all the process. One worker can produce 24 mugs in six hours and thirty minutes.
To account for employee absences and late arrivals and such, we will assume that 1 worker per day can assemble or produce 20 travel mugs.
-step by step
-ent res charts for manufacturing/production
Our workers have a total of 8 working hours including1:30 minutes break. An individual worker can assemble one mug in 15 minutes including all the process. One worker can produce 26 mugs in six hours and thirty minutes.
To account for employee absences and late arrivals and such, we will assume that 1 worker per day can assemble or produce 20 travel mugs.
Stainless Steel Cup. (durability of the product) Twelve (12) pesos per unit. P 30,000 in bulk.
Handle. (rubberized on the inner side where the finger tips will be placed to enhance grip) Five (5) pesos per unit. P 12,500 in bulk. USB Connector. (option) (can be used when you’re using laptop) Ten (10) pesos per unit. P 25,000 in bulk.
Car Cigarette Lighter. (option) (To feel the portability of the product using car) Ten (10) pesos per unit. P 25,000 in bulk. Plastic Lid. (made from food grade plastic) Five (5) pesos per unit. P 12,500 in bulk.
Bottom Holder – Holds the heating container in place, connects the USB Adaptor to the heating coil, and attaches to the plastic accent (above it) and the bottom plate (below it). Fifteen (10) pesos per unit. P 25,000 in bulk.
Plastic Accent – covers the inner layer of the Thermo-Mug. Serves as a safety measure and aesthetic design. Five (5) per unit. P 12,500 in bulk.
Heating Coil. Fifteen (15) pesos per unit. P 37,500 in bulk.
Bottom Plate – holds the outer layer of the unit to the inner reheat layer. two (3) pesos per unit. P 7,500 in bulk.
Factory Machinery & Equipment:
The following are the Fahrenheit Electronics’ Factory Machinery and Equipment used for the production of the Thermo-Mug: The following are the Fahrenheit Electronics’ Factory Machinery and Equipment used for the production of the Thermo-Mug:
Wires (Php 18 per meter) P 2,340 per 150 meter.
It is a single wire, cylindrical, flexible strand or rod of metal. It use for
the electricity flow directly to the coils to heat-up.
Long Nose And Diagonal Wire Cutter (Php 350.00 per unit) P 4.86 per month. It is used for cutting electrical wires.
Soldering iron (Php 450.00 per unit) P 6.25 per month.
It is used to solder the wirings and coils to produce durable bonding and connection between each other. Electric tape (Php 5.00 per unit)
It is used to cover-up open wires. It is also used to insulate electrical wirings to prevent from unnecessary conduction.
Food grade epoxy (Php 1,276.38 per 3.74 liters)
Food grade epoxy is used to bond each part of the tumbler. It is a food grade material so it can’t harm anybody who’ll use the product.
Factory Machinery & Equipment:
8 in 1 screw driver with flashlight. It is used for the screws involved in the production of the product. (P 195.00 each) P2.70 per month.
The Company’s Smart mug is wrapped by a plastic film, polyethylene. It is a common plastic and commonly used in packaging different kinds of product such as bottles, containers, furniture, appliances and so on and so forth. The product is wrapped with it because of its flexibility to fit the package firmly. It is also for better stress resistance, impact resistance, and toughness of the product.
Packaging which forms a sales unit for the user or final consumer .The product will be enclose in a plastic wrap and each product will have a carton box and comes to a bigger box for the storage in the building. The main packaging materials included: * Carton box
* Plastic wrap
Carton box= P 400 per month
Plastic wrap= P 1000 per month
Paper/fiberboard = P 4000 per month
The Fahrenheit Electronics’ Thermo-cup is wrapped by a plastic film made from polyethylene. It is a common plastic and commonly used in packaging different kinds of product such as bottles, containers, furniture, appliances and so on and so forth. The product is wrapped with it because of its flexibility to fit the package firmly. It is also for better stress resistance, impact resistance, and toughness of the product.
After the wrapping of polyethylene plastic film, it will mainly packed in a semi open box like carton packaging with a company name and descriptions indicated. The logo of the company will be placed at the upper-center most of the thermo-cup. The design of the logo will be print screened or engraved depends upon the demand and taste of the customer.
The company will offer a different style of marketing which the customer will have an option to customize their own thermo-cup by making their own logo engraved or print screened on it and it depends where the logo will be placed. But the packaging will be the same as mentioned and prices may vary.
Our company use L300 van in delivering our product. This van is owned by our co- owners and this is one of our company’s advantages. We don’t need to pay for rental of vehicles we just spend a sort money for the gasoline. Our company owned three vehicles to be used for our transactions. The vehicles to be used by our company are the following:
*Kia K2700 cost = (839,000 pesos)
* Nissan close van cost = (200,000 pesos) 2nd hand
The total cost of our two vehicles amount to 1,039,000 Php
Depreciation value of vehicles :
* Kia K2700 = 69,916.67 Php per month
* Nissan close van = 16,666.67 Php per month
Total depreciation cost = 86,583.34 Php per year
Many businesses use their own vehicles when transacting operations. Our vehicles are owned by our three directors our Operation Director Mr. Bautista owned the Mitsubishi adventure, our Marketing director Mr. Andres
owned the Kia k2700 and our Finance Director Mr. Santos owned the Nissan close van.
Quality & Safety Measures:
Our product Thermo-Mug has heating capacity to ensure that our consumers will enjoy their specific hot drinks. Our product thermo cup has usb plug and lighter heater plug in order for the thermo cup to maintain its warm temperature. This product is portable and there is no need for the consumers to avail hot water, they could simply plug in their thermo cup in their laptops or cars and the thermo cup would automatically heat up their drinks. Thermo cup does not contain any hazardous chemical. The inner part of thermo cup is made up of stainless metal which is the heater of the mug. The outer layer of the cup is made up of fiber glass and can absorb the heat of the cup. Each electrical part of the thermo cup was fixed very well to ensure the safety of the consumers.
Thermo cup has a limit heating temperature and it is only up to 72 Fahrenheit. This kind of temperature is for warming purposes and probably safe. Our product thermo mug is designed for young professionals and other busy professionals. Thermo mug is different from ordinary tumblers thermo mug has heat retention properties. It also contains USB plug and car plug for heat retention. Consumers can plug this mug on their laptops and even in their own cars. Thermo mug is properly sealed and the outer part of our product is all water proof so thermo mug is absolutely washable. The stainless still container which holds the liquid beverage is also washable. Thermo mug contains 12 volts if it is plug into the car socket and if it is plug into USB plugs it contains 5 volts which is built for the safety of our possible consumers. The socket of thermo mug contains retractable plug cover to prevent water leak when washing the thermo mug.-pictures -add more descriptions as needed
Location & Layout:
Fahrenheit Technologies will be headquartered in 778 B, Mahogany Street, Octagon Village, Barangay Dela Paz, Pasig City. The total size of our office is 273.37 square meters.
-benefits/advantages of layout
Introduction to Marketing Aspect
As mentioned, Fahrenheit Technologies is a corporation that primarily caters to other businesses (B2B). These are a type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers.
In order to be successful with your B2B marketing plan, you need to begin with getting answers to questions about just how you will define your marketing success. Thinking about your business and committing your marketing goals and budget to paper is the first meaningful step towards a plan to succeed. Planning your marketing will also eliminate knee-jerk spending that usually results in wasting scarce financial resources that do not produce a return on investment.
This is where all the information gathered about the current market is vital. In this part of the study we will discuss the factors that affect the feasibility of our business. One of the first factors that need attention is the industry analysis. Industry analysis involves reviewing information on current economic market conditions. Industries studied can include retail, fast food, manufacturing, various repair services and construction. The type and number of business industries analyzed depends on the local economic market. Markets with large groups of consumers or several demographic groups often have more business industries than smaller economic markets. Free market economies are built on the concept of supply and demand. Markets with high consumer demand often have more companies in particular industries.
And when it comes to supply and demand, that is also one of the most important parts of economics and how it measures the strength of a market
economy. Supply and demand set the price and the amount of a good that will be produced. When the demand is high the price will be less, but when the price is high the demand will be less.
general view of the market
possible customers in a general sense
charts and graphs according to survey
charts and graphs according to survey
more centralized according to target markets
-charts and graphs according to survey
-actual businesses we’ve targeted
The Fahrenheit Technologies targets the big and small companies that can sell the thermo-mug to its clients. The biggest client of Fahrenheit Technologies is the travel airlines, coffee shops and tea shops. Some other business that will buy our product that they will be using in there promotional activities for the customers.
Push strategy uses company’s sales force to create customer demand for product. In it the manufacturer promotes the products to distributors, the distributors to wholesalers, the wholesalers to retailers and in last retailers to customers. This strategy requires less expenditure as no major advertisement is made. But still to adopt push strategy all supply chain members have to give special offers to the buyers, they have to give discounted offers and closeout deals, etc. This strategy is also very
effective in wholesale business as the wholesalers have to sell products to retailers and until or unless they offer something special to retailers they will not buy from them. So adopting promotional activities is very important for wholesale suppliers. Sales Promotion
Business-to-business markets sales promotions are also used as a means of moving customers to action. However, the promotional choices available to the B-to-B marketer are not as extensive as those found in the consumer or trade markets. For example, most B-to-B marketers do not use coupons as a vehicle for sales promotion with the exception of companies that sell to both consumer and business customers (e.g., products sold through office supply retailers). Rather, the techniques more likely to be utilized include: price-reductions, free product, promotional products and trade shows.
Of the promotions listed, trade shows are by far the mostly widely used sales promotion for B-to-B marketers. Sales promotion has been in constant growth since the 1960’s and has today become one of the key factors in the promotional mix. The methods used have become more sophisticated and an increasing number of companies are realizing the importance of a well structured promotion strategy. It was also found that the focus is not always on using sales promotion tools to generate sales, but to improve relationships. As for the tools used, it was found that there are commonly used sales promotional tools in B2B settings.
Advertising – advertise the product, service or brand in newspapers, radio, television, magazines, outdoor signage and website. Personal selling or Telemarketing – Face-to-face selling in which a seller attempts to persuade a buyer to make a purchase. Publicity – created by sending media releases to print and broadcasting media, giving interviews to the media and from word-of-mouth. Short-term sales Promotions – market your product or service using coupons, competitions, discounts, and contests. Direct Marketing – involves sending letters, emails, pamphlets and brochures to individual target clients, often followed by personal selling or telemarketing. X-Deals – this involves releasing our products to established retailers in exchange for a percentage of the profit. This percentage ranges for each retailer but also promises immediate exposure to the market. Sample products: 135,000 php (300 pcs @ P450 per mug) Free/Giveaways
-The company will be giving away sample products in prospective clients.
Trade shows: 20,000 php
-when there is trade show the company will participate by installing a both to display the products.
Everyone uses tumbler especially when they’re drinking coffee Attractive because of its electronic capabilities
Simple but very useful
The market is not existing resulting to difficulty to build a string market OPPORTUNITIES
There are no other tumbler that has the capability to reheat liquids such as coffee or water. Not so expensive so the chance of expanding is high
Potential on the B2B transaction through a retail outlet
Can be sell on a study store or any bookstore
There might have competition online or local.
There are simple tumblers that only function to hold your coffee or any other drinks
The Distribution Channel of the Fahrenheit Electronics Company is using a
Business-to-Business Marketing which it describes transactions between business, including the manufacturer-wholesaler transaction relationship and, or wholesaler-retailer transaction relationship.
The same as the Business-to-Consumer marketing, B2B can also employ different channels, such as physical store or e-commerce as the company acquire. The difference is that B2B’s transaction is in bulk therefore involving large sums of money which is how the company transacts.
Small kitchen appliances continued to have a small contribution to overall volume sales of consumer appliances in 2012, because almost all of these products are considered unnecessary or have direct and indirect substitutes which are cheaper or are readily available in most homes. Nonetheless, the category posted volume growth of 5% in 2012. This can be attributed to the increasing need for convenient products due to Filipinos’ busier lifestyles. COMPETITIVE LANDSCAPE
Ever Good Unlimited remained the leader in small kitchen appliances in 2012, with a 29% volume share. The company was able to maintain its position due to the strong following for its Imarflex brand, its long-standing presence in the country, and extensive distribution across different channels. In 2012, Ever Good Unlimited and Northern Islands, its closest competitor, each registered a market share increase of two percentage points. However, Northern Islands experienced a slightly stronger sales volume growth of 5.4%. PROSPECTS
Small kitchen appliances are expected to record a volume CAGR of 4% over the forecast period. This stable growth can be attributed to more Filipinos switching to electric kettles, the biggest category, because of the convenience that these devices offer, especially to those with hectic schedules. The country’s good economic outlook is also anticipated to stimulate demand, as consumers will be more willing to spend due to better financial stability. Hence, household penetration is expected to improve in
the next five years. http://www.euromonitor.com/small-kitchen-appliances-non-cooking-in-the-philippines/report
Consumer Appliances in the Philippines
Consumer appliances records modest volume and value growth in 2012 Consumer appliances in the Philippines recorded modest volume growth in 2012. This growth can be attributed to better economic conditions, the residential property boom in the country, the green initiatives of the government and manufacturers, and the prevalence of flexible payment options from major banks and chained electrical goods retailers. The increase in value sales, on the other hand, was mainly driven by greater demand for energy-efficient and feature-heavy models, which commonly command higher unit prices. (Source: http://www.euromonitor.com/consumer-appliances-in-the-philippines/report) Top Appliances Stores in the Philippines
The EMCOR Store Head Office In Davao City. EMCOR has over 100 branches spread across the Philippines. There are a number of appliance stores in the Philippines that carry nearly all product lines. They offer prices at almost the same rates like their competitors. Nevertheless, not all of these companies share the same excellence when it comes to products and services. Quality products, excellent service and amazing promotions are some of the aspects that set them aside from the rest. Below are the Top 3 one-stop shop appliance stores operating all over the Philippines today. We considered the following criteria for ranking the companies: Network size, Products, Service, Online transaction capability, and Industry tenure.
1. EMCOR Inc. is considered to be the most extensive retail appliance, computer, furniture and motorcycle store in the Philippines. They have been serving the Filipino people for 52 years. This company has a total of 106 stores operating all over Visayas, Mindanao and Palawan areas with a sister company in Luzon, the KServico, that has a total of 100 stores in Metro Manila and Luzon area. It has developed the online transaction feature
recently and is beginning to receive orders for overseas customers. They have the customer service officers or CSO’s to attend to the customers even after the sale. EMCOR carries all major brands for all product lines. One reason that separates this company among the others is their Instalment Plan. EMCOR offers
installment plan of up to 30 months for motorcycles and 18 months for appliances, furniture and computers. In addition, they recently added Western Union to their service in order to cater the remittances of our sisters and brothers working abroad.
2. Abenson, Inc., one of the companies of Benison Group of Companies, has engaged in retailing of appliances and consumer products in the Philippines for 35 years now. They have 64 branches in Luzon, Cebu and Tagbilaran only. They operate inside department stores for the convenience of the people. Most customers prefer one-stop shopping nowadays and there’s no better place for it but the malls. Their online shop, to most, is considered to be among the best Philippine website marketing tools. It caters to both local and overseas consumers.Abenson stores carry appliance and computer brands for all product lines.
3. SM Appliance is the retail appliance store of SM Group of companies. They have been in the industry for 18 years since their incorporation in SM malls in 1991. Although SM Appliance stores are located only inside SM Department Stores and other prominent malls, it has 45 branches operating all over Luzon (37), Visayas (6) and Mindanao (2). They also have their online store which will enable customers to shop for appliances in the Philippine, both local and abroad.SM Appliance stores carry all kinds of products from small to major items.
These companies continue to grow in spite of the economic challenges our industry are experiencing right now. They continue to serve the global market with quality products and excellent services. These facts are the reasons why the aforementioned companies are among the top appliance stores
in the Philippines.
The advent of advanced electronics technology in the country brought various introduction of innovative electronic products to the market. This trend does not allow the majority of manufacturing companies to maximize their time to introduce another product. This is mainly because there is an increasing intense competition in the industry. There exists a diverse competitors ranging from huge global corporations to specialized companies within the Philippines. Competitors are increasingly manufacturing products, including sophisticated ones, in low-cost jurisdictions. This becomes one of the risks that the company shall look into.
Other risks, manufacturing in particular, include two main issues: First is the price of the major commodity, and raw materials. Since the materials to be used in the product are not solely produced by the company, the fluctuation of global exchange rate might affect the price of raw materials that are mostly imported by large manufacturing companies in other countries. Secondly, quality control checks have been introduced at all stages of appliance assembly in the country. Thus, it requires that the company shall also perform quality control during its product assembly.
Demand & Supply Analysis
A Short Survey on Travel Mugs – We appreciate your input and guarantee that
your answers will be treated with confidentiality and respect. Rest assured that the results will be used strictly for academic purposes only. Thank you!
What is the name of your company?
What is your line of business?
Who are your key customers?
How many people does your company employ?
What is your job title?
Does your company have other branches?
Does your company offer travel mug/coffee tumblers to its customers?
If not, would you be willing to?
If so, who is responsible for buying or getting them?
Where does your company go when looking for an item like this?
How often does your company purchase them?
How many of them do you order each time?
How long does it take your company to make this buying decision?
What features do you look for when you purchase this item?
What needs are you trying to meet when you purchase them?
Our product thermo cup has a great impact on our customers. Thermo cup is made not only for busy business man but also for young professionals who does not have enough time to boil water for their coffee. Our product was made for all workers who are very busy, thermo cup has heating capacity and also contain USB plug so our customers can plug in the thermo cup in their laptops or even in their cars. Thermo cup is also a friendly user it is very easy to use and it is also portable and you can bring it anywhere even when you are travelling inside or outside the country. Thermo cup is made to let people know technology is evolving very fast it might affect the old tradition of each customers but customers should know what benefits they would will be getting when they consume an advance product. Thermo cup ensure 100 percent quality and 100 percent satisfactory for our dear customers.
Building a new assembly area nearby a community will affect the local’s everyday life and their future. The environment of the town will also alter, it is true that there are some negative effects, because a large assembly area will pollute the environment and the traffic will rise. The most obvious advantages of the new assembly area are the economy developments. Nowadays, unemployment is increasing therefore almost every town require new job opportunities. the positive effect to the local economy is tremendous. New workplaces born and the extant industry is also improving by the increased commerce.
In addition, environmental change is also performed because the government has more found to spend from the growth of the industrial tax and the drop of the unemployment benefits. On the other hand, the new construction will have disadvantages. For instance, the pollution will rise and the traffic of the town is probably increasing. The construction of the new assembly area is often noisy and perhaps taking for a year to being built. After it is finished, the employees are starting to work and as a result, the traffic of the rush hours will grow.
Furthermore, the factory will begin to pollute the environment. Not only the assembly area itself, but also the new volume of transport. All things considered, building a new assembly area is beneficial to the community in spite of its adverse affect, because in our days, people well-being depends on work opportunities and economy state. If the fund of the town is good, the environment pollution can be reduced by developments.
Fahrenheit Technologies assures that their company will regularly pay their taxes and will follow all the rules set by the government. The benefit that the government can obtain from Fahrenheit Technologies is the tax revenue itself. And in return this tax revenue collected by the government will benefit the household sector
This company can also offer jobs to a lot of unemployed citizens that will help the economy build itself. The proposed business will benefit the economy through providing employment. This will give the hired employees and their families their source of income for their living needs. That consumers income will help keep the economy stimulated. This business will support local workers as well as professionals and alleviate the need for local employment. It will also promote the creativity of the individuals, concerned in this project. The business will also contribute to the competition which will lower the price of the product but will maintain its quality.
This study aims to examine the feasibility of introducing an innovative, non-cooking appliance in the market The objective of this study is to identify the demand for this product in the market Justification
Scope of study
Type of business
Human Resource Director
http://voices.yahoo.com/roles-responsibilities-marketing-director-7654218.html Office Supplies
http://www.valueline.com/Stocks/Industries/Industry_Analysis__Office_Equipment_and_Supplies.aspx Organization President
http://humanresources.about.com/od/samplejobdescription/f/president.htm Salaries & Benefits
http://www.businessweek.com/small-business/legal-forms/starting-a-business/company-profile-samples.html Raw Materials
http://survey.cvent.com/blog/best-practices-for-conducting-surveys/15-key-questions-for-b2b-market-research-surveys Performance Appraisal
Hiring of Personnel
http://www.adzu.edu.ph/employment-policies-and-practices/hiring-procedure.html Benefits of Travel Mug
https://www.boundless.com/marketing/marketing-channels/channel-structures/b2b-channels/ Promotional Strategy
http://www.ukessays.com/essays/marketing/sales-promotion-in-business-to-business-marketing-marketing-essay.php Type of Business
Business Permits and Applications
http://www.doingbusiness.org/data/exploreeconomies/philippines/starting-a-business Pre-operating Costs