Feasibility Study

Forever Cookies a little cookie goes a long way... beyond FOREVER...

Proponents: Patricia Marie S. Adriano Shaira Andrea T. Sarmiento

BM2Y2-1

Submitted to: Ms. Lhara May Laureta

CHAPTER 1 The Problem and Its Setting

INTRODUCTION Cookies are a thin, sweet, usually a small cake commonly baked. A cookie can be any of a variety of hand-held, flour-based sweet cakes, either crisp or soft. Cookies are made in wide variety of styles, using an assemblage of different ingredients including spices, vegetables, dried fruits, oatmeal’s or sugars. Cookie-style cakes are thought to date back to 7th century Persia A.D. (now Iran), one of the first countries to cultivate sugar. Cookie was first made after sugar became available as baking ingredients about 1400 years ago. It is believed it was spread to Europe through the Muslim conquest of Spain. By the 14th century, it is common in all levels of society throughout Europe, from royal cuisine to street vendors.

First historic record of cookies was a test cakes. A small amount of cake batter was baked to test the oven temperature. Persian bakers added sugar to bread recipes to create sweet cakes that baked in a clay oven fuelled by dry wood fires. Because it was hard to estimate baking temperatures in that kind of oven, small amounts of cake batter, placed inside at intervals, determined the best time to start cooking the full-sized cakes. Eventually, those small "test" cakes became a delicacy, and today called cookies, the Dutch word for "little cake". Global travel becoming widespread at that time, cookies made a natural travel companion, a modernized equivalent of the travel cakes used throughout history. Forever Cookies will produce pre-order and ready to eat cookies with customized flavors and appearance. The business is expected to serve great satisfaction to customers’ taste buds and also to the hearts of the customers. The proponents want to deliver happiness thru cookies and help build inexorable relationships like the one that the owners have. They want to share the extraordinary feeling that the cookies could bring! The proponents decided to choose personalized cookies. The idea first comes up when proponents both tasted raisin-topped oatmeal cookie. The proponents figured out to make cookies more attractive, captivating, or add some charisma by customizing cookies with different shapes, letters, characters etc. with flavors that will suit the moods and feelings of the customer. STATEMENT OF THE PROBLEM I.

What are the factors to be considered in planning of constructing a cookie business?

II.

What are the materials and facilities needed for a cookie business?

III.

Will a cookie business be a good source of income?

IV.

How

will

a

certain

business

help

the

entrepreneurs

and

the

community?

SIGNIFICANCE OF THE STUDY The study for the chosen business, specifically in this area of baking cookies is a real essential to young entrepreneurs, business planners, future researchers and students. This study would be able to help those who are planning to work in making their own business. It can give pieces of information and knowledge that is of much significance for them to be successful in the related area. The study can help them particularly in collecting data and in decision-making, so that they can well-manage the career they wanted to step into. Young Entrepreneurs. This study can help young entrepreneurs to have further ideas and knowledge when they are starting and planning to have a business similar to the proposed business and product. This study can guide and support them in making decisions and to manage it better. Business Planners. This study can provide concepts to those who want to start or planning to have a business. Included in this study are factors used in the early stages of planning like new ventures to help business planners decide whether to go forward with new projects. Future Researchers and Students. This research paper can be of great help to the future researchers and students. This can give those additional ideas or knowledge in doing their research papers. This approach to business can also help them in their study similar to this topic. This can serve as their material in doing their study or research by serving useful ideas and information.

Moreover, this research will provide recommendations on how to evaluate the performance of a certain business in accordance of Marketing Aspect, Management Aspect, Technical Aspect, Financial Aspect and SocioEconomic Aspect.

SCOPE AND DELIMITATION OF THE STUDY The feasibility study for the “Forever Cookies” business covers the factors that will contribute and has involvement for the success of the proposed enterprise. It deals with the Marketing, Management, Technical, Financial, and Socio-economic aspects that will have connections with the operation of the business. The product will be disseminated through direct selling on the shop and orders through online websites such as Facebook and Instagram from the customer are also accepted from those who are willing to purchase the product. This study will mainly focus on the areas and factors that are of importance in making customized cookies. The study will not include information about other pastry for business. It is also not going to deal with how to make cookies, or new ideas and experiments about it. This paper can help to give ideas with regards to the reality of life especially as we walk towards the path of the business world. The result of the study will only be proven after the study is conducted.

The business will serve the The business will not serve following products: the following products:

Personalized with different and design.

Cookies flavours

Beverages: water, juices, coffee, milk and tea.

Cupcakes and other pastry products. Liquors and soft drinks.

Actual Product

DEFINITION OF TERMS Capitalization. It is the sum of a corporation's stock, long-term debt and retained earnings also known as "invested capital". Customize. It is used to modify or build according to individual, personal specifications or preference. Fast-growing. Used to describe activities, organizations, etc. that is getting bigger very quickly. Hinder. It is referring when you make something such a task or action to slow or difficult. Loyalty card. It is a card given to a customer by a business, used by the business to record information about what the customer buys and to reward them for buying goods or services. Pastry. It is a food made from a mixture of flour, fat, and water, rolled flat and wrapped round or put over or under other foods and baked. Profit. It refers to a financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs and taxes needed to sustain the activity.

Renovation. It is to make changes and repairs to an old house, building, room, etc. so that it is back in good condition. Revenue. It is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Supply chain. It refers to the sequence of processes involved in the production and distribution of a commodity. Volatile. It is liable to change rapidly and unpredictably, especially for the worse. REVIEW OF RELATED STUDIES AND LITERATURE Foreign Literature According to Elinor Klivans in her book, Slice and Bake Cookies, the slice and bake technique could produce so many different kinds of cookies and so fast. She added that any cookie dough could be made using the slice and bake method without the need of rolling and cutting which makes the baking process faster. When she was developing recipes, she made over 2,500 cookies. Some logs or slabs of dough she stacked in the freezer so they were ready to be freshly baked. She could ship huge boxes of cookies to her family. Her book is widely read by many aspiring bakers and even housewives like Klivans is. She added that this book of her is her very own cookie revolution. According to Carole Bloom in his book, Cookies for Dummies, you can pick the cookie recipe that best fits your need. There are so many types of cookies from which to choose that one is bound to be perfect. Once you’ve decided which cookies to bake, read through the recipe. Again, make sure that the cookie recipe you pick is appropriate for the occasion. If you bake delicate cookies for a picnic, they’ll probably be crumbled and broken by the time you’re ready to eat them. Whether you’re a first-time cookie baker or have been baking cookies for a long time, reading the recipe through to be sure that you understand

what needs to be done is always a good idea. If something isn’t clear, read the recipe again to see whether it can be clarified. Local Literature From a website entrepreneur.com.ph, Ric Pinca, executive director of the Philippine Association of Flour Millers (Pafmil), agrees that indeed “baking is a rewarding and profitable business.” “Bread is the country's second staple and everyone eats bread. Though consumed mainly as breakfast and snack fare, bread is also taken at lunch, usually as burgers and even dinner time. Bread is a convenience type of food. You don’t have to sit and have a formal dinner just to eat bread. In fast food shops, you may get your bread right at the counter and you even don’t have to call a waiter to serve you.” Bread, he added, may be consumed while walking, riding a bus or even while whiling away time anywhere. But while the bakery business is a profitable one, Pinca said it is also a demanding profession. Aside from investing money, he said a good amount of time, patience and study is required if one is to put up a successful bakery business. From the book 50 Best Baking Recipe, over the past 50 years, various Maya products, specifically cookies have found their way into homes and establishments all over the country and different parts of the world, where they are transformed into delectable treats. Housewives have discovered that baking opens up a whole world of opportunities for self-satisfaction, and even for business entrepreneurship. Once a woman’s domain, the kitchen is now a hub where the entire family can be productive while having a happy bonding session. Baking has indeed become a fulfilling pastime and a profitable endeavor for many. We are proud to be part of this positive development in the baking industry. Foreign Studies According to Dr. Joe Schwarcz from his article, “Professor Wonder and Nutraceuticals”, in his book, That’s the Way the Cookie Crumbles: 62 all New Commentaries on the Fascinating Chemistry of Everyday Life, simply put, a nutraceutical is a food or beverage that provides some health benefit beyond

simple nutrition. The addition of iodine to salt, iron to cereal, and folic acid to flour are common examples of processes that were introduced to improve the health of consumers. A nutraceutical does not necessarily have to be a product of modern technology. From Dr. Schapwarcz’ other article, “For Some, A Diet Goes Against the Grain”, if people are to be asked what they worry about most in their food supply and they’ll round up the usual suspects. Their thoughts will drift to nitrites, sulfites, food colors, artificial sweeteners, monosodium glutamate, or genetically modified organisms. Yet we are far more likely to be harmed by a commonly occurring natural component in food than by any of these. Gluten, a protein found in wheat, barley, rye, and — to some extent — oats, can provoke health problems in a significant percentage of the population. In an article in a website, madehow.com, “How Bread is Made”, the history of how baking started is discussed. Wheat and barley were two of the earliest plants to be cultivated, and primitive people living as early as 5000 B.C. are known to have eaten these grains. Eventually it was discovered that adding water to the grain made it more palatable, and people experimented with cooking the grain and water mixture on stones that had been heated in a fire. In this manner, porridge and flat breads were developed. The ancient Egyptians were known to grow barley and wheat. Excavations of their cities revealed that they enjoyed flat breads with nearly every meal. It is likely that leavened, or raised, bread was discovered accidentally when a wheat and water mixture was left in a warm place, causing the naturally occurring yeast to produce a puffed-up dough. It is also possible that a piece of leftover dough was mixed into a new batch, producing the same results. Cooking the dough in an oven over an open fire produced an even better grade of bread. The first ovens were clay structures in which a wood fire was burned. When the wood had completely burned, the ashes were scooped out from an opening on the side of the oven. The wheat dough was placed inside the oven and then the opening was sealed. By the time the oven had cooled, the bread was baked. Local Studies

According to Jims Vincent Capuno in his article, “Growing Cassava for Food and Profit”, a locally known root-crop, kamoteng kahoy or balinghoy, cassava (scientific name: Manihot esculenta) ranks second only to sweet potato camote) in hectarage among root crops produced in the country. It is mainly grown for its tubers which are a rich source of carbohydrates. It is also a good source of calcium and ascorbic acid. However, there are many reasons why Filipino farmers should plant cassava.

Let’s start with its food uses, which include confectionaries, native

pastries like suman and bibingka, sago, vegetables, food seasoning, noodles and flour.

Although not the staple of Filipinos, cassava feeds about 800

million people around the world, according to the International Center for Tropical Agriculture (CIAT). Another important product is cassava starch, known in the world trade as tapioca flour.

Extracted from the tuber, it is used by a wide variety of

industries – food, pharmaceutical, paper, adhesive, textile, mining and other manufacturing industries. In the food industry alone, the uses for cassava flour are numerous. Studies have shown that cassava flour can substitute for wheat flour in baked products, as much as 10 percent in bread and can be higher in other baked products. It is utilized as thickener for soups, baby food, sauces and gravies. Cassava flour is excellent filler that could supplement the solid contents of ice cream.

It is also a good binder for sausages and other

processed meat products to prevent these from drying up during cooking.

CHAPTER 2 The Marketing Aspect

MARKETING ANALYSIS

Forever Cookies launches with an exciting renovation of cookie design concept -- personalized cookies. The combination of art and pastry has a great opportunity in the market because of its fancy and catchy appearance plus the target market can manage to receive the design of cookies they desire. The cookies are enrich with ingredients that are sources of vitamins that is beneficial to health, its taste, quality, appearance and reasonable price. The OPPORTUNITIES The product is designed to make personalized cookies that are health beneficial because it will have flavors like vegetables and fruits and flavors based on the shape, color, and the message it wanted to convey. It is unique and its price is affordable. It is very popular to and patronized by the target market. The product is available all year round and expected to return the investment and gain profit. The business will also provide loyalty cards and promos that the customers will surely enjoy. THREATS The fast-growing industry of pastry can provide mature and intense competitors to the business. Customers can have their change in taste very quickly. Volatile costs lead to planning for scenarios where costs of supplies and materials are rising. Cautious planning leads to business operation delays that have negative effect. Volatile revenue makes planning difficult, which could delay key investments.

STRENGTHS The uniqueness of the design of the product help distinguish it from competitors and have the advantage because consumers can’t get the

products elsewhere. The proponents will post the availability of the product on social networking websites (Facebook and Instagram). Loyalty cards will be provided to customers. A strong supply chain helps obtain the right resources from suppliers and delivery the right product to customers in a timely manner. WEAKNESSES The business name is not yet known by the customers hindering the customers to try it for the first time, the management cannot put on higher prices compare to other competitors. Staff turnover can hurt the shop’s ability to compete, because selecting employees are consider taking risks. The availability of the management and owners to monitor the operations inside the shop can increase business risks and reduce profit. DEMAND ANALYSIS Cookies are small edible cakes that can be eaten anytime and anywhere. Customized cookies in terms of concept of flavor and design are available for all occasions like birthdays, couples’ celebration, Valentines’ day, and other seasons. Factors like reasonable and affordable prize, quality of the product, and its elasticity to meet the needs of the customers increase the chances that they will patronize the product. Customers that will patronize the product will be a great help in increasing the demand. SUPPLY ANALYSIS The supplies will be acquired every week to make sure that the ingredients are in good condition and fresh making the product in better quality. The materials will be supplied from an online shop and the ingredients will be bought from the Bakers’ Depot located at Robinsons’ Metro East at Cainta, Rizal which is convenient because the location of the business is near it.

CHAPTER 3 The Management Aspect

PROJECT SCHEDULE Activity 1: Feasibility Study Preparation Period Covered: January – March 2015 In this period, the proponents spent their time collecting data through researching, brainstorming, and interviews that will give lots of information that is going to contribute to the feasibility study of the proposed cookie business. Activity 2: Putting Up Equity Period Covered: April 2015 This period will be allotted for putting up the capital, where the partners equally contribute the amount of PHP 250,000 for a total of PHP 500,000 as the beginning equity of the business. Activity 3: Registration Period Covered: May – June 2015 During this period, the owners will accomplish all the requirements needed in putting up a new business. Registration will include getting license and business permit for operation of the business. Activity 4: Renovation of the Location of the Business Period Covered: July – August 2015 The period will be allocated for the renovation of the commercial space located at SM Masinag. Acquiring of equipment and setting those up inside the bake shop is also included within this activity period.

Activity 5: Hiring of Employees

Period Covered: September – October 2015 Hiring of staffs and employees will be done during this allocated time. They will be prepared and taught with important details that they need while they work for the firm. Activity 6: Acquisition of Materials and Ingredients Period Covered: October 2015 Materials needed for the operation of business will be acquired during this period. Ingredients for baking and other supplies for the first operating period will be purchased. Activity 7: Start of the Business Operation Period Covered: November 2015 The Forever Cookies will be open for business during this period. Activity 8: Putting the Business on Websites Period Covered: December 2015 In this period, the owners will create an account on social networking sites as an online bakeshop.

OPERATING PERIOD Form of Business Ownership The proponents have agreed that the business will utilize the partnership form because there will only be a need of small capital and its ease of formation.

INTERNAL ORGANIZATION Manpower Requirements / Job Analysis Job Title: Baker Job Requirements:     

College diploma or equivalent Resume (complete) At least 1 year experience as a baker Willingness to learn Flexibility to work shifts

Job Descriptions:  Monitor baking process to identify needed adjustments.  Get information from production schedules and recipes.  Handle and move ingredients, tools, and cooking pans.  Control mixing processes and oven controls.  Implement products by following recipes or creating new ones. Salary: PHP 10,000/month Job Title: Waiter / Waitress Job Requirements:    

High school diploma or equivalent Resume (complete) Flexibility to work shifts Pleasing personality

Job Descriptions:  Greet customers entering establishment.  Serve food and beverages to patrons

at

tables

in

the

establishment.  Clean tables or counters after patrons have finished dining.  Prepare tables for meals, including setting up items such as linens, silverware, and glassware.  Remove dishes and glasses from tables or counters; take them to kitchen for cleaning. Salary: PHP 3,000/month

Job Title: Cashier Job Requirements:     

High school diploma or equivalent Resume (complete) Proficiency in mathematics and statistic Flexibility to work shifts Proficient in managing the rush of customers and helping each one of them promptly.

Job Descriptions:  Receive payment by cash, check, credit cards, vouchers, or automatic debits.  Issue receipts, refunds, credits, or change due to customers.  Count money in cash drawers at the beginning of shifts to ensure that amounts are correct and that there is adequate change.  Establish or identify prices of goods, services or admission, and tabulate bills using calculators, cash registers, or optical price scanners.  Give customers the information about existing promos. Salary: PHP 5,000/month

Chapter 4

The Technical Aspect TECHNICAL SPECIFICATIONS OF THE PRODUCT The Forever Cookies main product is flavor and appearance – customized cookies. It is made of basic cookie ingredients that will have an addition of flavors like chocolate, vanilla, butter and others that will be chosen from the pool of flavors that the customer can pick from. The shape of the cookies are basically round but it will also come with letters, animals, flowers, and other design or shapes that customers may request. It will be served on fancy plates when ordered and will be eaten inside the bakeshop. For cookies on-the-go, the products will be contained in a box. RAW MATERIALS The materials will be bought from an online shop and from the Bakers’ Depot located at Robinsons’ Metro East. The mentioned store is known for good quality materials and ingredients that are used for baking. They have complete supply of equipments, a one-stop shop.

Equipments:

 Baking parchment



 This is a non-stick paper ideal for lining cake tins. It is also known as silicone paper. Baking parchment is both greaseproof

and

moisture-

proof. You can use it to line cake tins and baking trays. No

additional

greasing

is

necessary. It can be used in the oven and freezer.

   

 Baking tins



 There are many tins on the



market these days of all shapes, sizes and materials. At Good Food, we prefer heavy-duty,

silver-coloured

tins. Dark-coloured silicone bake ware has a tendency to absorb heat and make the sides of the cake dark. It is essential to use the correct tin size and shape stated in the recipe or else cooking times

will

need

to

be



adjusted.  

 Cooling rack



 This is an essential piece of equipment for helping air to circulate

around

freshly-baked

cake

your or

biscuits, avoiding sogginess.

 

 Cutters



 A selection of metal cutters

 Dredger/ Shaker

allows you to create simple but

effective

 A dredger is useful for lightly

cake

dusting surfaces with flour or

decorations and fun biscuit

icing sugar when rolling out

shapes.

dough or icing. However a tea strainer or sieve can



perform the same function perfectly well.

  





 Food mixer  A food mixer is not essential for cake-making but it does save effort.

time

and

minimise







 Food processor  Useful for so many functions both sweet and savoury, the food processor can also be used for many cake recipes and is good for rubbing fat into

flour

when

making

pastry. 

 Greaseproof paper

are using it for lining a cake

 This type of paper is ideal for

tin, you should also lightly

wrapping food, particularly

grease

greasy or fatty foods. It's

spooning in the cake mix.

a



suitable wrapping for fruit



often

suggested

as

cake before placing it in a tin. It can be used in the freezer

as

well

as

the

microwave and oven. If you

the

paper

before





  

 Icing smoother  A

handy



tool

decorating,

the

helps

give

to

for

smoother you

professional

a

finish,

smoothing marzipan

cake

down or

(ready-to-roll

your

sugar

paste

icing)

after

you've applied it to the cake. You

can

buy

this

from

specialist

cake

decorating

shops. 

  

 Marzipan spacers

then spacers will help you

 If you like to decorate cakes

achieve an even thickness.

with marzipan or sugar paste

These can be bought from



specialist suppliers.



 Measuring jug



 Baking recipes often include oil,

milk

or

other

liquid

ingredients and a measuring jug is essential for getting the quantities right. As a measuring jug is needed for so many cooking purposes, it's always useful to have one to hand.

 

 Measuring

spoons

and

teaspoon

or

tablespoon.

Measuring spoons ensure an

measuring cups or

accurate amount is used. If

overestimate the size of a

you like to use American

 People

often

under-

recipes,

it's

also

worth



buying a set of measuring cups

to

avoid

tricky

conversions.

 

 Mixing bowls



 It's useful to have at least two large mixing bowls as many recipes require more than

one.

Choose

glass,

metal or plastic according to preference

but

it's

worth

having heatproof ones so that you can put them in the microwave

or

over

simmering

water

when

melting chocolate.

 

 Palette knife

 A palette knife is a long, thin



implement with a rounded end. It has a wide range of uses, including smoothing on icing

or

cake

fillings,

scraping bowls and cutting butter into flour.

 Pastry brush



 A pastry brush can be used to glaze your pastry with egg wash or milk or for brushing filo

pastry

butter.

It's

brushing

off

with also

melted good

excess

for icing

sugar when cake decorating.

 Rolling pin

the width of dough or icing

 Bakers can use one-piece

you are rolling out.

rolling pins or the type with a fixed handle at either end, depending on which you find easiest. For really smooth results make sure the pin is wide enough to fully cover







 Scales



 As accuracy is the key in baking, a good set of scales are necessary for measuring out ingredients.

 Sieve  A

fine

desserts with icing sugar or sieve

made

from

metal or plastic is ideal for sifting flour and icing sugar, which

is

recommended

highly when

cake-

making. It can be easier to use a small tea strainer to dust surfaces and decorate

cocoa.



 Skewer



 A metal skewer will help you determine

whether

your

cake is cooked. If you insert it into the cake and it comes out clean, your cake is ready.

 Spatula  Avoid leaving cake mixture or melted chocolate in your bowl

by

spatula

using which

a

bendy

can

easily

skim around the sides.



 Spoons



 A wooden spoon is a great all-rounder in the kitchen. If you don't have a food mixer, use it for beating your cake mixes. A large metal spoon is handy for folding in flour or whisked egg whites.

 Whisk

with

 Whisks

are

designed

to

metal

loops form

that into

cream, whisking

egg

a

whites

and folding

give

volume

bulb shape at

gently

and

aerate

the end of a

in

foods and are

long

handle.

can also use it

therefore

It's

always

to

for

handy to have

lumps

making.

one of these in

sauces.

balloon

the kitchen as

important cake A whisk

flour,

is

handheld

a tool

in addition to whipping

you

remove from











 Zester



 It's handy to have a zester,



fine grater or micro plane, as many baking recipes require citrus zest. The latter two can also be used to grate nutmeg.        Basic Ingredients:  Flour





  Sugar

 Butter 

 Eggs 

   Milk

    Flavorings

    BUILDINGS AND FACILITIES  

The business will be open for operation inside a shopping mall, SM Masinag located at Marcos Highway, Antipolo City, Metro Manila. This will also be the place where the baking and making of the products will be done. It is to be rented costing PHP xx per month. The stall is to be renovated and designed to suit the idea of the business, Forever Cookies, and to achieve the ambiance of relaxation while inside the shop.



The proponents have chosen the place because there are many shoppers, majority are students which are easily attracted to facilities like a cookie parlor. Most especially, there is not much competition surrounding the business.



  PLANT LOCATION

 The place of production is mainly going to be at the bake shop.



Orders coming from the walk-in customers and the pre-ordered products will be made and produced there. The proponents, however, decided that they can produced the products at home when they are ordered thru the online bake shop of the proposed business, Forever Cookies.  Chapter 5  The Financial Aspect     Chapter 6  The Socio-Economic Aspect    EMPLOYMENT AND INCOME  

The Forever Cookies business will provide

employment that helps the economy by increasing the employment rate in our country. By create jobs for the individuals that will not only help the company grow but also help themselves grow individually. This will help the country lessen its unemployment rate. The families of employees can benefit also by giving the satisfaction of their needs by salary and benefits that the business will provide.   GOVERNMENT  

The Forever Cookies business will fulfil its

obligation by the paying the right taxes on time, accurately and precisely. Especially, the proposed business can help people in times of calamities by giving donations to the victims. It can help increase the Gross Domestic

Product of the Philippines. It can also introduce the Philippines as a country that can produce good quality breads.   COMMUNITY  

The

company

will

see

to

it

that

the

workplace where it will be situated will not cause harm to the community as well as to the environment. The community can benefit from this business by sponsoring in events giving free sample from different schools to endorse our product.   SOCIAL IMPLICATION  

The company will make sure that the

business will observe environmental friendly practices. At the same time this can help to further nurture the creativity of Filipino people.

