OrganiKo Corp. Budget Hearing 19 February 2011. MISSION To promote nutritional value amongst Filipinos and to serve as the cornerstone of a healthy nation

OrganiKo Corp.Budget Hearing

19 February 2011

MISSION

To promote nutritional value amongst Filipinos and to serve as the cornerstone of a healthy nation.

VISION

To be the most trusted organic Poultry provider in the Philippines.

CORE VALUES

We exude 100%...O-rganic Practices;

R-esponsibility;G-uaranteed Cleanliness;A-nimal Welfare;N-ation-building outlook;I-ntegrity;K-alusugan mind-set; which meansO-utstanding Performance

OFFICIAL LOGO

Organizational Chart

Board of Directors

(Neill Cedric Castillo, Pauleen Aure, Ina Diola, Ayana de Mesa, Louie Yebra)

Chief Executive Officer (Mark Kevin Dellosa)

VP for Sales and Marketing

(Joyce Baylon)

VP for Operations (Richelle Orpilla)

VP for Human Resources and Administration

(Kimberly Bianca Arugay)

VP for Finance (Jeff Marvick de

Gulan)

VP for Legal (Carlo Sanchez)

VP for Information Office

(Idony Tan)

VP for Research & Development

(Mary Grace Javier)

Human Resource and Administration

Recruitment and Hiring of Organiko Employees

• Where: Rm. 106– On November 27, 2010, there are a total of

43 employees who have been hired, including the Top Management

– Hiring was conducted through interview by the VPs

– The hiring of employees was facilitated by the HR Department and the respective VP’s presented their employees together with its Job Descriptions

– LIST OF EMPOYEES


• Organizational Chart was presented to the board by the VPHRAD through the help of the VPs and the CEO.

Board of Directors (Neill Cedric Castillo, Pauleen Aure, Ina Diola, Ayana

de Mesa, Louie Yebra)

CEO (Mark Kevin Dellosa)

VP for

Sales

Marketing

(Joyce

Baylon)

VP for

Operations

(Richelle Orpilla)

VP for

Human

Resources (Kimberly Bianc

a Arugay)

VP for

Finance

(Jeff Marvick de Gulan)

VP for

Legal

(Carlo

Sanchez)

VP for

Informatio

n Offic

e (Idon

y Tan)

VP for Research & Developme

nt (Mary Grace Javier

)

Corporate Secretary

Executive Secretary


Executive Assistant to the CEO

VP for HRAD (Kimberly Arugay)

Director for Policy

Implementation (Beth Afan)

Director for Compensati

on & Benefits(Leandro Santos)

Director for

Recruitment,

Training & Dev’t

(Leo Cruz)

Director for Purchasing

(Shiena Aquino)

Purchasing Manager for Office Supplies(Lucia Fernandez)

Purchasing Manager for Equipments

(Angelique Tiongson)

Purchasing Manager for Operations

(Ryzza Sampang)

HUMAN RESOURCE AND ADMINISTRATION

VP for Operations (Richelle Orpilla)

Director for Production & Operation Systems (Denise Camba)

Regional Plant Manager (Tristan Jandoc)

Production Control & Analysis Supervisor

(Donna Ong)

Strategic Manufacturing Logistics Supervisor (MJ

Valentos)

Plant & Equipment Maintenance Supervisor

(Mark Cruz)

OPERATIONS DEPARTMENT

VP for Marketing (Joyce Baylon)

Sales Forecas

ting Officer(Giselle Rivera)

Promotions &

Public Relations Officer (Noel

Tibayan)

Marketing Officer

(Niko Santos)

Sales Analyst(Robin

Feliciano)

Advertisement

Designer(Shanna Panganib

an)

Advertisment

Designer(Fae

Galvez)

Product Improvement &

CSR Officer

(Chantal Paz)

MARKETING DEPARTMENT

VP for Research & Development (Grace Javier)

Head for Market

Research(Denise Aquino)

Market Research

Officer (Kristofferso

n Yusi)

Head for Technology

& Instrumentation Research(Fyzee Alim)

Head for Product

Development &

Innovation Research

(Angelique Mendoza)

Head for Feasibility Studies (Anthony

Petel)

Research Officer(Alyana Rances)

RESEARCH AND DEVELOPMENT

VP for Legal(Carlo Sanchez)

Director for Environmental Issues (Suslijah Gesmundo)

Director for Legal Research & Contracts (Myka Fama)

LEGAL AFFAIRS

VP for Information Office (Idony Tan)

Director for Technical Development & Support

(Miguel Castillo)

Director for ERP Management (Rommel Panganiban)

INFORMATION OFFICE

VP for Finance (Jeff de Gulan)

Chief Accountant (Trixie Neri)

Chief for Budget

(Cleo Velasco)

Chief Treasurer

(Paula Azurin)

Chief Auditor (Marianne Asuncion)

FINANCE DEPARTMENT

Company Policies

• Formulated by the Director for Policy Implementation, the Company Policies are sets of guidelines, rules and regulations which encompass all of the members of the Human Resource

COMPANY POLICIES MANUAL

Compensation & Benefits

• The Director for Compensation & Benefits submitted the final budget for the compensation & benefits.

Compensation and Benefits as of February 16

Training and Seminars

• ORGANIKO SEMINAR: WHEN WE BECOME ONE– January 4, 2011– Company Policies– Punctuality, Respect and observance of

the Chain of Command – Benefits– Assignments of specific positions

Training and Seminars

• “ORGANIKO: CLEANLINESS! OH YES!”– January 9, 2011– Proper sanitation of the Farmers in

operations:• Proper attire• Proper hand washing• Proper use of facilities• Prohibition of smoking and littering

Future Seminars

• “Malinis na Pangangatawan, Ating Panatilihin: a Health and Sanitation Seminar”– Beneficiaries: Farmers in Batangas– Objective: To inform the farmers the

importance of cleanliness not just in the farm but also with their bodies to ensure that the company produces clean and healthy chickens

Future Seminars

• “Manok Natin, Alagaan Natin”– Beneficiaries: Farmers in Batangas– Objective: To teach them the proper way

of growing healthy and clean chickens

Future Seminars

• “Coping Up with Stress and Frustrations”– Beneficiaries: Employees in the Main

Office in Metro Manila– Objective: To help them deal with the

stress they gain from work and their personal lives

• A budget of P100,000.00 pesos is allocated for the three seminars.

HR Department Budget

• This includes the works of the Purchasing Department from the HRAD. – Office Supplies needed for the OrganiKo

Employees– Equipments needed for the plant–Materials needed for the Operation of

the business

Operations Department

Chick

• Day old chick price = P30.00-P50.00

• Pre-vaccinated before delivery

Chicken Breeds for Broiler

• Cornish - Cobb• Langshan• Cochin• Brahmas

• Good initial body weight• Excellent growth• Strong immunity system

development• Low mortality rate• Brooding cost is low• Produce market-

preferred round, double-breasted meaty broilers with short big legs

Characteristics of Cobb chick

Cobb chicken

• Normal growth = 42-45 days

• With vitamins and minerals enriched feed = 32-35 days

• Cobb chicks may grow up to 60 days, depending on the

chick’s body adjustment to the environment, feed, and

medication.

• Body weight =1.5kg-3kg

• Benefit: meat is very tender as compared to other

breeds.

Chicken Feed and Medication

• critical stage of the chicken = 1st 2

weeks (14 days)

• immune system is currently

developing

• Chicks are hyper sensitive to germs,

viruses, and climate changes

Chick Booster

- Chick stage (1-14 days)

- Feed Allotment 10g/day/chick for 7 days

- 25kg average weight/sack of chick booster

- Estimate of P600.00 per sack

Broiler Starter

- Broiler starter stage (15-28 days)

- Feed Allotment 60g/day for 3 weeks or 21 Days

- 50kg average weight/sack of broiler starter

- Estimate of P1,000.00 per sack

Chicken Feed per growth level:

Broiler Finisher

- Adult stage (29-42 days)

- Feed Allotment 90g/day for 2 weeks or 14

days

- 50 kg average weight/sack of broiler finisher

- Estimate of P1,100.00 per sack

Chicken Medication

- Roughly P1.00/chick

Chicken Feed per growth level:

PLANT• the housing and

dressing facility must be on a flat or plane terrain surface

• Mountainous or rugged terrain surface is not highly recommended

• The plant must be located in an area three kilometers (3km) or

more away from the residential area in order not to affect the

air quality of the residential zone.

• Benefit: more conducive for the chickens

• One hectare (1hc) or 10,000 sq m of land must be allotted per

plant, in order to have room for future expansion.

• 1 hc – poultry house

• 1 hc – drerssing plant

• 1 hc – multi-purpose means

(regional office, parking area, warehouse, and quarters for the

poultry personnel)

PLANT

Poultry-Broiler House

• recommended to be built using strong materials

(concrete, cement, steel, etc) rather than light

weight materials in order to avoid structural

problems especially during the typhoon months

• broiler house recommended for modern broilers

is the tunnel ventilated type of broiler house

• Recommended floor space that could house 25,000

chickens is roughly 16,000 sq ft, dimensions

width = 40ft

length = 400ft

• broiler house in most of today’s poultry-broiler industry is raised six feet (6ft) above the ground with additional two feet (2ft) allotment at the bottom part

• recommended to use technologically advanced equipment and machinery


OrganiKo Regional Plant

• Broiler Management Guidelines and Safety Policies – strictly followed prevent the occurrences of

injuries and work-related accidents as well as to maintain sanitation and standard operating procedure in the workplace.

– Compliance is mandatory

Automatic Chicken Feeder

Automatic Nipple Drinker

Automatic / Gas Brooder

Climate Control System and

Ventilation

Plastic Slat

Power Generator

Water pump (at least 1hp)

Water tank (at least 700 gallon

capacity)

List of recommended equipment, machinery, and materials:

Market

• Filipinos are known for being “chicken lovers”

• with the fast increase of poultry farmers engaging

as contract growers for big companies such as

Magnolia, VitaRich, and Bounty Fresh, it would be

a challenge for the organization to establish its

name as a supplier of quality dressed chicken

• fast growth of health-conscious market, organic

products are now rising and penetrating the

genetically modified dominated market

• STRATEGY: that the organization could adopt is to

produce a HIGH QUALITY ORGANIC CHICKEN that

will SUIT THE MARKET’S BUDGET

• HEALTHY NA, MURA PA!

Market

- Super Markets (few list):SM Super MarketsRobinsons Supermarket Corp.Rustan Super Centers Inc.PureGold Super MarketWaltermart Ventures, Inc.UltraMega Super MarketCherryFudoramaHi-top Supermarket, Inc.Parco Selections

Recommended Market/Establishments to Penetrate:

- Local Public Markets- Restaurants (few list of restaurants serving healthy foods and eat-all-you can restaurants)

CiboCafé YsabelCymaPalatofino RistoranteKamayanDadsCaballenBarrio Fiesta


- Hotels (few list)Hyatt HotelsShangri-La HotelsSofitel HotelDusit Thani HotelManila HotelManila Peninsula

HotelPan Pacific Manila

HotelTraders Hotel

- Hospitals


Suppliers

• Suppliers are partners to success• As much as we want to keep our

suppliers limited in our own country, in extreme instances suppliers outside the Philippines might be needed.

JVA Cobb• Location: Batangas• Price: P24.00/chick• Delivery charges: none• Minimum Order: 1,000 chicks• Class: Class A• Pre-vaccinated: Yes• Offers Manual and Veterinary Assistance: Yes• Offers Potential Market and Customers: Yes• Sells Feed: Yes

Day old Chick Supplier:ORGANIKO

ACCREDITED EXCLUSIVE SUPPLIER

Cobb-Vantress Philippines Inc.(Direct Supplier)• Location: Pearl Plaza Pearl Drive, Ortegas Center, , Pasig

Center, Philippines• Price: P25.00-P30.00/chick with discount depending on

order• Delivery Charges: Yes• Payment Term: COD or Check; Post dated check not

accepted• Minimum Order: • Class: Cobb 700 classified as Class AA• Pre-vaccinated: Yes• Offers Manual and Veterinary Assistance: Yes• Offers Potential Market and Customers: Yes• Sells Feed: N/A• Contact Number: (632) 634-3590/ 3661• Fax: (632) 634-3598

Day old Chick Supplier:ORGANIKO

ACCREDITED EXCLUSIVE SUPPLIER

JON Cobb• Location: Bulacan• Price: P35.00/chick• Delivery charges: yes• Minimum Order: 1,000 chicks• Class: Class A• Pre-vaccinated: Yes• Offers Manual and Veterinary Assistance: N/A• Offers Potential Market and Customers: N/A• Sells Feed: N/A

Day old Chick Supplier:

ORGANIKO ACCREDITED ALTERNATIVE

SUPPLIER

Phil-Malay Poultry Breeders Inc. (Direct Supplier)• Location Main Office: Quezon City, Philippines• Location Farm: Indang Cavite• Price: P25.00-P30.00/chick with discount depending on

order• Delivery Charges: Yes• Payment Term: COD or Check; Post dated check not

accepted• Minimum Order: N/A• Class: Cobb Class A• Pre-vaccinated: Yes• Offers Manual and Veterinary Assistance: Yes• Offers Potential Market and Customers: Yes• Sells Feed: N/A• Contact Number: (632)371-1334/5• Fax: 00-632-371-1334

Day old Chick Supplier:

ORGANIKO ACCREDITED ALTERNATIVE

SUPPLIER

LIMCOMA Multi-Purpose Cooperative• Location: Lipa, Batangas• Contact Number: +063 437561841• Fax: +063 43 7562578

Universal Robina Corp. (Direct Supplier)• Location: Pasig City, Philippines• Contact Number: (632) 641-4275• Fax: (632) 395-1200-222

Feed Supplier:

TangCor• Location: Rizal, Philippines• Contact Number: (632) 660-4540,

(632) 348-3197, +639228483198

BelMont AgriCorp• Makati, Philippines• Contact Number: (632) 8159861

Equipment Supplier:POULTRY HOUSE AND

MACHINES AND EQUIPMENT

St. Claire Agri Equipment• Location: Bulacan, Philippines• Contact Number: (044) 641-3538• Fax: 044-288-2701• Mobile Number: 09198133635Hillsdale Marketing, Incorporated• Location: Pasig City, Philippines• Contact Number: (632) 631-3944• Fax no: (632) 634-7386

Equipment Supplier:DRESSING PLANT MACHINES AND

EQUIPMENT

Hercules Power Generator Sales• Location: Manila, Philippines• Contact Number: 735-9810, 400-

2650• Mobile Number: 090-8888-1668

Equipment Supplier: POWER GENERATOR SUPPLIER

VG Tech India• Location: India• Contact Number: +91-4286-646747• Fax: +91-4286-227711

Equipment Supplier:INTERNATIONAL

POULTRY EQUIPMENT AND DRESSING PLANT

SALES AND MARKETING DEPARTMENT

• The Sales and Marketing Department devises the marketing strategies – such as advertisements and events – to be done to promote the products. This is done through an awareness-to-decision process. Moreover, this

department is designated to create sales forecasts and direct the flow of sales of the product. The Sales and Marketing Department of Organiko Corp. is composed of two advertisement designers, a sales analyst, a Sales Manager, a Marketing Manager, a CSR and Product Development Manager and an Events and Promotions Manager. The department is headed by the Vice-President for Sales and Marketing.

Significance of a Logo

• A company’s logo embodies its vision in creating its product. It is also the means by which the company is to be known. The Sales and Marketing Department submitted seven logo proposals to the Board of Directors to choose which will embody the organization’s full potential.

Chosen Logo

ORGANIKO POSTERS

• A product’s poster is its primary face to the market as it is what to be seen in different advertisements to make it known to the public. The Sales and Marketing

Department submitted three poster designs deliberated upon by the Chief Executive Officer. Two poster designs were chosen.

Approved Poster

Significance of a Brochure

• A brochure contains a brief but comprehensive discussion of what the product is and what are its benefits. Basically: why should people buy it

Outside of the Brochure

Inside of the Brochure

• A company mascot corresponds to the product of the company. It is the interactive representation of the product to entice the market. Usually, mascots are created to attract children into eating the product or even persuading their parents to buy the product. Three mascot proposals were passed by the Sales and Marketing Department

Significance of a Mascot

Chosen Mascot

Company Jingle

The goodness of lifeis something we can share

You can see the best of living everywhereOh this could be (2x)

ORGANIKOYour healthiest choice.

Written and Composed by:Ms. GISELLE RIVERA

ADVERTISEMENTS CONCEPTS

NEWSPAPER

– People from classes A, B and C usually often read newspapers. Moms check the lifestyle section where we intend to post the advertisement.– The cost of the advertisement is

PhP50,085.00 - PhP58,8300.00 for 1/3 page of a broadsheet PhP75,127.50 - PhP88,245.00 for ½ page.– The target newspapers are:» Philippine Daily Inquirer» Philippine Star

– P 60,000 is the cost per issue for full page of inside front cover.– P 40,000 is the cost per issue for

ordinary full page.

HEALTH AND LIFESTYLE MAGAZINES

• Php 90,000 is the lowest price for one of the billboard spaces. Price is relative to the location of the billboard space an advertiser would like to rent/lease. Currently 3-month term of contract are offered as promotional scheme.

• L.E.D. BILLBOARD FOR SALE-P107K PER PANEL• BILLBOARD PRINTING 12-15PHP/SQFT

BILLBOARD ADVERTISEMENT

RADIO ADVERTISEMENT

• The radio ad must have a tagline to be

emphasized and a fast-paced jingle as the background melody.

• A celebrity’s voice endorsing the product should be the voice behind the radio ad in order for the listeners to be aware that the product is consumed by a known personality.

• The radio ad must be patterned to the final TV commercial.

TELEVISION ADVERTISEMENTS

• The target market is necessary to be identified in order to choose the models fitted to endorse the product.

• It is suggested that the commercial is family-oriented and focused. Since OrganiKo Corp. is the cornerstone of a healthy nation, healthy living must emanate from the basic unit of the society, which is the family.

• The commercial should be taken in the urban setting, even though the product is being produced in farms located in the local areas, in order to reach the consumers not only located in the provinces but those living in the city as well.

• There should be a celebrity endorser since popular and known personalities endorsing the product contribute to a positive consumer attitude which could possibly affect the purchasing behaviour of consumers.

• The prices for Television commercials and advertisements depend on the specific time chosen for the commercial to be aired on TV. In addition, the price of each TV advertisement will also be affected by the “frequency”, which is the number of times an ad is repeatedly aired on a single spot. However, the number of frequency of a TV commercial depends on the various local television channels. The higher the rating of a local TV channel would definitely have a higher cost as well. However, the effective and efficient utilization of the viewership and awareness of the product is guaranteed. (Detailed Cost of TV Ads, See, Appendix D)

• The advertisement will be aired during primetime which has the following rates:• A 15-second commercial, would be from Php 100,000 to Php 400,000

depending on the frequency. • A 30-second commercial, would be from Php 500,000 to Php 1,000,000

depending on the frequency.•


• *NOTE: The cost of television advertisements aired during the primetime, is more expensive than those aired during the afternoon spot, because this is the period wherein most of the Filipino employees come home from work. Thus, many of them would possibly be spending time with their families in front of the television.

• If the company wishes its commercial to be aired during the afternoon spot, which is usually after lunch time, the estimated cost of TV advertisements would range from Php 30,000 to Php 200,000.


• *NOTE: The television commercials shown on local channels during the afternoon spot is cheaper than the primetime slot, because only a certain bracket are watching television and most Filipinos are out for work.

• According to Mr. Renjie Tolentino, a talent agency caster of Front Media Entertainment Talent Agency, the company will also have to pay the people who will be aired in the commercial. The following are the rates:

• • The “extras” in the commercial will be paid approximately,

Php 15,000 to Php 20, 000 each.• The lead endorsers will be paid Php 100,000 to Php 200,000 each.• If the company wishes to have celebrity endorsers, the payment for

each celebrity would depend on their respective talent fees.


Advertisement Cost/duration Frequency Total1. Newspaper 50,085.00/Sunday Issue 48

2,404,0802. Magazine A 60,000.00/ Issue 3

180,0003. Magazine B 40000.00/ Issue 3

120,0004. Billboard 90,000.00/ 3 month 4 360,000TOTAL

3,064,080

ADVERTISEMENT COST

CORPORATE SOCIAL RESPONSIBILITY

TULONG PARA SA BAYAN

- This is the main CSR Program of the Organiko Corp. which aims to help poor Filipinos by donating a total amount of P100,000.00 to public Hospitals within Metro Manila.

How to Eat: the OrganiKo Way (Feeding Program)

Objective/s:• To raise awareness of the benefits of organic food.• To improve the nutrition of private school students.• Gather data for research and development.

Attendees/ Target Beneficiaries:• Selected elementary private schools in Metro Manila and

nearby provinces.

Launching Date: • Nutrition Month: July

How to Eat: the OrganiKo Way (Feeding Program)

Program:• The company will coordinate with 3 private schools within

Metro Manila and 4 public schools in 2 nearby provinces.• When approved, the company will send people to provide

lunch for the students of the chosen schools for one week.• This – when launch on the target period – will raise people’s

awareness of the fact that eating is not always ‘healthy’; and choosing organic food is better than choosing ‘more’ food.

• This program will not only nourish the children but can also serve as an avenue for research and development of the company.

Panic if not Organic! (Interactive Seminar)

• Objective:• To raise people’s awareness pertaining to organic food.• To make parents aware of the apparent benefits of organic

food to their household.

• Attendees/ Target Beneficiaries:• Parents of private school students

Launching Date: • Nutrition Month: July/ Family Day celebrations/ Mothers’

Day

Program:• In line with CSR No. 1 – this can also be launched within the

nutrition month.• This can be different from normal seminars by conducting it

with the following:– Showing audio-visual presentations on:

• how organic food is made• how different it is from the usual food• how beneficial it also is to nature

– Providing materials and teaching mothers how to make simple and usual meals healthier.

– Giving a ‘taste test’ to compare the difference between organic and non-organic food.

– Giving out free samples of our product.

Panic if not Organic! (Interactive Seminar)

Takbo para sa OrganiKo (Fun Run)

Objective:• To raise awareness of the presence of organic

food

Beneficiaries:• Everyone can be invited to join the fun run. Launching Date: • First Week of December

Program• This may be conducted around Luneta Park or the UP Circle in

Diliman.• The fee will depend on how much money is needed to be raised

for the campaign.• This will be a run for awareness campaign.• The first ten people to finish the course of the race willreceive gift

packs.• After the fun run, the company will provide organic chicken

sandwiches in support of the campaign.• Also, this becomes an awareness campaign before Christmas – to

remind people to eat healthy and stay healthy during the Christmas season.

Takbo para sa OrganiKo (Fun Run)

Mas Masarap ang Pasko kung Pagkain ay OrganiKo (Interactive

Seminar)

Objective:• To raise awareness of the presence of organic

food Beneficiaries:• Different barangays across Metro Manila

Launching Date: • Second Week of December

Program• This is almost the same with CSR No. 2. However, this should be held in

barangays rather than in schools.• Moreover, the food to be served and taught are those for the holiday seasons

and yet, does not cost ‘over the budget’.• This can be different from normal seminars by conducting it with the

following:– Showing audio-visual presentations on:

• how organic food is made• how different it is from the usual food • how beneficial it also is to nature• how to avoid high cholesterol during the holidays

– Providing materials and teaching mothers how to make holiday meals more special by being organic, such as:• Healthy spaghetti• Chicken a la King

– Giving a ‘taste test’ to compare the difference between organic and non-organic food.– Giving out free samples of our product.

Mas Masarap ang Pasko kung Pagkain ay OrganiKo (Interactive

Seminar)

Benepisyo ng Pagkaing OrganiKo (Poster Campaign)

Objective:• To raise awareness of the presence of organic food • Beneficiaries:• Different barangay health centers across Metro

Manila and nearby provinces • Launching Date: • First week of January

Program• Barangay health centers are frequented by

people who needs help on their health.• Giving out flyers and or posting tarpaulin or

posters of the benefits of organic food will raise people’s awareness on organic food.

Benepisyo ng Pagkaing OrganiKo (Poster Campaign)

SALES FORECAST Quantity per Month Peso Value

Chicken Price Php 255.00

Sales Estimates:

Optimistic 50,000

Most likely 45,000

Pessimistic 40,000

Expected Value of Estimates

45,000

Total Amount per Operation

Php 11,475,000.00

Total Amount in 7 Operations

Php 80,325,000.00

2011 Events and Promotions

Organiko Launch Party

• Date: FEBRUARY 19, 2011• Time: 2pm-5pm• Venue: SMX Convention Center Pasay City, Philippines• Guests: Open Event (Available to all)• Purpose: Launching of OrganiKo in the Philippine Chicken Industry • Event Details:

– Introduction of OrganiKo – Launching of OrganiKo’s main products, which are Organic Chickens– A Slideshow of Information about OrganiKo’s Organic Chicken – A free sample of the Organic Chicken to be served to the guests– Interactive activities between staff and hosts.– Songs rendered by Sarah Geronimo and Regine Velasquez– Meet and Greet with Celebrity Endorsers– Band Performances by Rocksteddy, Parokya ni Edgar and Itchyworms

• Estimated Budget: P100,000

Organiko Pagkaing Pilipino

• Date: August 27, 2011• Time: 11am-5pm• Venue: Company HQ in Makati• Guests: Employees and Customers• Purpose: In relation to “Buwan ng Wika” OrganiKo does its

part by promoting food made in the Philippines for Filipinos.• Event Details

– Interactive activities– Dance contest for the employees– Launching of new product.

• Estimated Budget: P100,000

Pasko sa OrganiKo

• Date: December 17, 2011• Time: 1pm-6pm• Venue: Market, Market, Taguig• Guests: Open Event (Available to all)• Purpose: A Christmas Event for Employees and Loyal Customers• Event Details

– Launching of new product for the holiday season.– Details about the product such as prices and discounts to be offered for the

holiday season– Guests are treated to some fun games and activities– Songs are rendered by special guests Rachelle Ann Go and Bugoy Drilon– Band performances by Parokya ni Edgar and SpongeCola

• Estimated Budget P100,000

2012 Events and Promotions

• Date: February 11, 2012• Time: 11am-4pm• Venue: Company HQ in Makati• Guests: Customers• Purpose: A special event conducted by the company to keep in touch

with its customers. Some activities are to be done during this event. And some new products will be launched

• Event Details:– Product Launches– Interactive activities for the Customers– Guests are to be treated to the free sample of the new product to be

launched– Meet and Greet with the Celebrity Endorsers of the Company

• Estimated Budget P100, 000

OrganiKo Promotional Event


• Date: August 25, 2012• Time: 1:30 pm – 6:00 pm• Venue: SM Mall of Asia• Guests: Open Event (Available to All)• Purpose: A promotional event conducted by the company for

endorsement of its products and to acquire new customers.• Event Details:

– Meet and Greet with Celebrity Endorsers of the Company– Product Samples are to treated for the guests– Interactive activities for the guests– Band performances

• Estimated Budget P100, 000


• Date: December 15, 2012• Time: 1pm-6pm• Venue: SMX Convention Center • Guests: Open Event (Available to all)• Purpose: A promotional event conducted by the company for the

endorsement of its product in preparation for the holiday season. And to keep in touch with its customers

• Event Details:– Meet and Greet with Celebrity Endorsers of the Company– Launching of new products. And product samples are to treated for the guests– Interactive activities for the guests– Details about the product such as prices and discounts to be offered for the holiday

season– Guests are treated to some fun games and activities– Songs are rendered by special guests Rachelle Ann Go, Bugoy Drilon and Ely

Buendia– Band performances by Parokya ni Edgar, SpongeCola and Rocksteddy

• Estimated Budget P1 Million

RESEARCH AND DEVELOPMENT

1. the product, 2. the technology and methods 3. the feasibility of the product to the

market.

RESEARCH AND DEVELOPMENT is about giving information with regard to:

BASIC INFORMATION FOR CONSUMERS

EATING CHICKEN AND ITS BENEFITS

1. A Very Good Source of Protein-Protein Protects Against Bone Loss in Older People

2. Chicken's Cancer-Protective Nutrients 3. Protect against Alzheimer's and Age-related Cognitive Decline4. B vitamins for Energy5. Vitamin B6 for Cardiovascular Health

-Organic Farming excludes the use of synthetic pesticides, growth hormones, antibiotics, genetically modified organisms and irradiation.

-reliance on ecosystem management, including the use of pesticides and fertilizers derived from plants, animal wastes, and minerals.

-incorporation biological methods, such as the use of one organism to suppress another, to help control pests.

-Benefits of Organic Farming: 1. increase soil fertility, 2. balance insect populations, 3. reduce air, soil, and water pollution.

WHAT IS ORGANIC CHICKEN?


BENEFITS DERIVED FROM ORGANIC FOOD

1. Organic Chickens are Environment-Friendly

-Local wildlife is not harmed. -The ground water and soil is not

contaminated. -The diversity of the ecosystem is

preserved -Less energy is consumed during

farming -Waste production is minimized. -The environment is free from

pollution.2. Organic Chickens are Farmer-Friendly

3. Organic Chickens are Consumer-Friendly


Organic meat and dairy:No antibiotics, hormones, or pesticides are given to animals Livestock are given all organic feed.

Disease is prevented with natural methods such as clean housing, rotational grazing, and a healthy diet.

Livestock must have access to the outdoors.

Conventionally raised meat and dairy: Typically given antibiotics, hormones & feed grown with pesticidesLivestock are given growth hormones for faster growth.

Antibiotics and medications are used to prevent livestock disease.

Livestock may or may not have access to the outdoors.

COMPARISON OF ORGANIC AND NON-ORGANIC FOOD


BASIC INFORMATION ABOUT CHICKENS

BREEDS OF CHICKENS

1. Langshan○ Its long legs and narrow body makes it one of the most sought

after breeds of chicken. They are considered as one of the most general purpose fowl raised for its meat and egg.

2. Cochin○ They are well known for its characteristic as a good mother

even to other breeds of chicken and is also one of the heavier types of chicken. They are also known as one of the friendlier type of chickens and are well adapted to close confinement. Their thick feathers make them suitable to breed even in the winter. Their only disadvantage is their slow maturity thus making them unsuitable to be bred for meat.

III. BASIC INFORMATION ABOUT CHICKENS

BREEDS OF CHICKENS 3. Brahma○ Its origins trace back to China but have mostly lived in

America. One of the heaviest birds, they are known in the showroom for their size, beauty and gentle nature. Their slow rate of growth discourage most breeders in their use for poultry meat.

4. Cobb○ Its origin is in America and is a product of a breeding

technique that was used in the late 80’s. They have been one of the most used chickens for genetic engineering which produced the Ross Cobb chicken which grows into an adult in six weeks.

PARTS OF A CHICKEN

Comb Eyes Ear Lobes Beak Wattles Breast Wings Tail Feathers Vent Hock Shank Toes


ORGANIC FEEDS – TYPES

MashPelletsCrumble

sStarterGrowerLayer

BroilerScratch


ORGANIC FEEDS – INGREDIENTS

ConcentrateGritCornGrainBranGerm

CalciumProteinAmino acidVitaminsMineralsKelp


ORGANIC FEEDS – FEEDS FOR CHICKEN

Watermelon rindSunflower SeedsTobacco SeedsBanana Leaves

Banana PeelsRabbit ManureSeaweedsWater Lily


CHICKEN DISEASES

– Bacterial Diseases– Viral Diseases– Fungal Diseases– Parasitic Diseases (including Protozoan

Diseases)


METHODS IN RAISING A POULTRY

Free-range technique-consists of poultry permitted to roam freely instead of being contained in any manner.-the chickens are given continuous access to an outdoor range during the daytime and sheds where they are housed at night.

Intensive farming technique -In egg-producing farms, birds are typically housed in rows of battery cages. Environmental conditions are automatically controlled, including light duration, which mimics summer daylength. This stimulates the birds to continue to lay eggs all year round.


Automatic Chicken Feeder

Automatic Nipple drinker

Automatic Brooder

Climate Control System

EQUIPMENT TO BE USED


EQUIPMENT TO BE USED

Plastic Slat

Power Generator

Water pump

Water tank


ORGANIC CHICKEN –SWOT ANALYSISSTRENGTHS WEAKNESSES

-Fewer toxins-Less fat-More flavor-Animal welfare-Environment safety-Better health for consumers

- Costly and needs special skill- Low production- Shorter shelf life- It may be just a “fad”-Not well known-More expensive than ordinary chicken

OPPORTUNITIES THREATS

-Market demand- Adults (aged 45-54) with higher income and education- Uniqueness of the product; has its own identity–Has a special place (niche) in the market

- Diseases, bacteria, and contamination- Major Competitors like Jollibee, McDonald’s, KFC, etc.- Fortuitous events like flood and typhoon because of climate change -Preferences of the market/customers-Economic instability of consumers


MARKET ANALYSIS

TARGET MARKET OF ORGANIC FOOD

– Women constitute the majority of organic food consumers. Organic food is popular amongst middle aged and older consumer group. Around the age of 40-60 years old. Figures are clearly lower with those below the age of 30.

– Target groups○ 1. the young and undecided consumer- 22 %○ 2. the cautious and skeptical consumer- 24 %○ 3. the 50+ health conscious consumer- 17 %○ 4. the successful and demanding consumer- 13 %○ 5. the totally convinced consumer- 24 %

DIRECT COMPETITORS AND THEIR SWOT ANALYSIS

COMPANY STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

Teresa Farms - A.P. INOCENCIO FARMS

-Good advertisement level compared with others.-Provides livelihood to many farmers because of its large capacity.-Devised a way for prevention of injury of chickens.

-Product Distribution.

-Distribution to potential geographic market.-Expansion.

-Substitute products.-Emerging competitors.-Epidemics.

MARKET ANALYSIS



Ever Rich Farms

(Delifresh)

- First OCCP (Organic Certification Center of the Philippines) - certified organic product.-Sourcing of supplies from different parts of the country.

- Visibility.-Product distribution.

-Improve advertising capability and product visibility.

-Epidemics.-Delays caused by various suppliers from different parts of the country.

MARKET ANALYSIS



Pamora Farm-Large capacity-Bio-security of the flocks-Regular veterinary and technical consultants-

- Chickens are from France so there might be delays and high cost of maintaining the product. -Might be expensive because of the high product cost.

-Expansion-Substitute source of getting the quality chickens.

-Delays in delivery caused by fortuitous events.-Epidemic that might come from France.-Economic ties with France.

MARKET ANALYSIS



Krukukuk Farms

(Farmer Tj’s Chicken)

-Guaranteed raised all-natural Chickens

-Not enough information is shown over the net.-Poor product visibility-Not known.

-Penetration in the market by increasing advertisements and visibility.

-Emerging competitors that have better capabilities.

MARKET ANALYSIS



Solraya Enterprises (SUNSHINE CHICKEN)

- They already have loyal customers since they started in early 2008.- They offer other products- They have expanded several times

- They don’t have a store yet- They still don’t have a solid brand name.- Not that good sales distribution

- They can find a way to cater their products to the major market- They can expand by teaming up with other investors who are willing to invest in their company

- Aggressive competitors- Less expensive chickens offered in the market

MARKET ANALYSIS



CALLEJON MARKETING

-They have an organized site that caters to a lot of people.- Their product is well advertised over the internet.

-Their main concentration is limited to Metro Manila- They don’t sell elsewhere

- Possible expansion - They can innovate their product- Opportunity to advertise it

- They should remain competitive by actively participating in events that promote organic chicken

MARKET ANALYSIS

INDIRECT COMPETITORS AND THEIR SWOT ANALYSIS


Magnolia Fresh

Chicken

-established name in the industry-endorsed by a big personality-has a wide variety of easy to market products-convenient store locations-has highly trained and knowledgeable personnel -good method of sales distribution-has lots of awards and recognitions

-direct competitor of any chicken company

-innovation of new chicken products-acquisition of a smaller competing company

-other competing chicken companies

MARKET ANALYSIS



Bounty Fresh

Chicken

-good market visibility-endorsed by a known personality-convenient store locations-has a wide variety of chicken products

-branded as a “pricey” chicken company-direct competitor of Magnolia Fresh Chicken

-build a new way to enter the “lower” market-better marketing strategy

-being branded as a high profile chicken company-low profile/commercial chicken companies

MARKET ANALYSIS


COMPANY STRENGTHS WEAKNESSES OPPORTUNITIES THREATSSM Bonus

Chicken-less pricey-“BONUS”-located in each and every SM Supermarket/Hypermaket Savemore Branches

-“BONUS”-considered pricier than the wet market chicken-cannot be found on wet markets

-build a way to penetrate the wet market-get a higher percentage of customers on the wet market

-customers’ belief that their products are costly-not being able to enter the wet market

MARKET ANALYSIS

PORTER’S FIVE FORCES ANALYSIS

The young and undecided customer– price oriented, thus, they can have the power over the company

in terms of the cost of the products. Their position is strong for the reason that they need the drive first before they will buy a certain product and one way for that to happen is to lower the prices.

The cautious and skeptical consumer– The people under this target group are occasional buyers and

are mainly composed of men. However, they compose 24% of the target market of the company, hence, they play a vital role in its profitability. If they switch to another seller, it will greatly affect the company thus, they have a strong position over the company with regard to the bargaining power.

COSTUMERS

COSTUMERS

The 50+ health conscious consumer– Since they are largely dependent on the nutrients

given by the organic chickens, they have a weak position on driving the prices down of the company’s product. They will most likely buy the product whatever the cost is for health reasons.

The successful and demanding consumer– These people represent a large market potential

thus, they should also be given priority in terms of being catered well.


COSTUMERS

• The totally convinced customer– Since they truly believe the health benefits of the

organic chicken, they will most likely buy the product for whatever the price is. Thus, they have a weak bargaining power over the company.


SUPPLIERS

Day old chick supplier– As of this time, there are 4 existing suppliers of day old chicks in the

country that the company is familiar with. Since there are only quite a few suppliers that seemed to exist, or rather, known by the company, there can be a bargaining power with these said suppliers. The suppliers can drive the prices up and the company can’t do anything about it, or they might give lower prices to those companies who are already established compared with ours, which is just starting.

Feed supplier– There are 2 suppliers of feeds known to the company for organic chickens

at present. In view of the fact that there only 2 of them, namely, the LIMCOMA Multi-Purpose Cooperative and Universal Robina Corporation, the position of these suppliers are very strong. There is most probably a monopoly of these suppliers over the company and thus, there is a bargaining power of the company with them.


COSTUMERS

• Equipment Supplier– Presently, there are about 6 equipment

suppliers known to the company.. 5 of them are located nationwide and 1 from India. Given that there are a fairly large number of suppliers of equipment necessary for the operations of the company, it can be said that the company can manage the bargaining power the supplier has.


V. PORTER’S FIVE FORCES ANALYSIS

SUBSTITUTES

Fish– Since organic chickens are sold only in selected markets,

consumers will tend to buy those that are available already. One such example is the fish. Fish are abundant in the market. It is for this reason that many are buying fish instead of organic chickens. People would want to minimize the personal hassle of buying a product, thus, they are likely to purchase fish because they are almost sold everywhere. Also, these are good for the body and prevent the risk of heart attack. These benefits will even lure more consumers in buying such product.


SUBSTITUTE

Pork– Just like the chicken, pork is naturally low in salt and also a

rich source of a good quality protein. Moreover, in view of the fact that it is readily available in the market than the organic chickens, people will more likely to buy pork instead.

Organic Tofu– Buying a chicken from the market can be costly. One

substitute for it is organic tofu. Not only is the tofu enriched with vitamins, it can be just as tasty with the chicken with the right dip.


NEW ENTRANTS

• A number of people are already entering the market of organic chicken. Since the market of organic chickens is still considered ‘untapped,’ people are venturing out this said market. Also, the requirement of starting up a business like this is slightly minimal. A large yard, fresh food and some equipment and the business can operate already.

OFFICE FOR LEGAL AFFAIRS

• Defines limits,• Standardizes what are the aims of the

corporation and how will it function.

ARTICLES OF INCORPORATION

• With organic eggs, they have to be the accredited that they were produced organically, the quality of life of chickens is severely compromised.– Sufficient breathing room

• An issue regarding on poultry farming in general also comes up. – These birds are typically crowded by the thousands into

huge, factory-like warehouses where they can barely move.

– Mutilations such as cutting of beaks and toes

Environmental Issues

• “Broiler" (meat) chickens have been genetically altered to grow twice as fast and twice as large as their ancestors.– Underdeveloped and subject to diseases, infections and

cancer• Stunning procedures are not monitored, and they are often

inadequate– electrical current lower than what is required to render

the birds unconscious– capable of feeling pain

• assembly line where in the birds are placed in scalding tanks– Boiled alive – redskins


• Enumerated the possible conflicts and issues that might encounter with regard to the environment.

• activities are in line with environmentalism and comply with humane standards of treatment to our employees and products.

• Environmental issues will eventually surface with a corporation that is on the poultry nature, the Legal Department has preempted these issues by presenting them as quickly as possible.


EO 481: Promotion and Development of Organic Agriculture in the Philippines

• Compliance Requirements for Organic Standards (Section 5) • EO 481 Section 5: Adoption of the Philippine National Standard for Organic

Agriculture (PNS/BAFPS 07:2003 ICS.65.020) specifically listed in ANNEX “A” shall be mandatory throughout the country for the sectors involved in the production and marketing organic agriculture products.

• According to EO 481 IRR we (OrganiKo; as an entity falling under the description “sectors involved in the production and marketing of organic agriculture products. Compliance with PNS shall be established through certification by an accredited local certifier”) is required to comply with PNS (Philippine National Standards) through certification by an accredited local certifier.

• * EO 481 IRR Rule VIII Section 39 : It shall be unlawful for any person, firm or corporation to sell products with claims or labels as organic without the approval of the certification body pursuant to the Philippine National Standards on Organic Agriculture.

• EO 481 Section 7: In addition to the requirements for labeling of organic products, commodities, goods and merchandise pursuant to PNS/BAFPS 07:2003 ICS.65.020 listed in ANNEX “A”, the products, commodities, goods or merchandise must contain contents prescribed in this Executive Order.– OrganiKo corporation’s goods or merchandise must

contain contents prescribed in EO 481.

EO 481: Promotion and Development of Organic Agriculture in the Philippines

• approximation of the cost of registering our business in Batangas, along with the business permit to be given at both Manila and the provincial headquarters

• It has also worked with the Finance Department in determining what tax laws apply, especially the income tax of the corporation.

PERMITS

• A mark is any visible sign that distinguishes the products (trademark) or services (service mark) of an enterprise, which includes the container of the products or the packaging.

• One of the basic and most important characteristic of a corporation is its insignia, as it bears the connotation of the unmistakable identity as corporation.

• The right to a trademark is granted when its owner registers it with the Intellectual Property Office of the Philippines (IP Philippines).

TRADEMARKS

CERTIFICATION

• Bureau of Animal Industry• Bureau of Food and Drugs• All operations must be certified as acting

in conformity with the standards and regulations of the certification program.

• Halal Certification and Accreditation Program by Da’wah Council of the Philippines, Inc.

INFORMATION TECHNOLOGY DEPARTMENT

Organization Website

• http://organiko4lm.webs.com

http://organiko4lm.webs.com/

Features:

• The SIDE PANEL is composed of:

–Home - a link that directs users to the company’s home/welcome page

– About Us – a page that gives users information about the company and its principles and history.

Features:

– Products – a photo gallery that provides users a look at what the company has to offer.

– Contact Us - a page that allows the customers to interact with the company and air out their complaints/inquiries about the company.

Features:

– Online Store – a page that allows the customers to shop online and have their products delivered at their doorstep

– Recommendation Form – a link that is for company employees only wherein they can give their suggestions for the betterment of OrganiKo.

– Learn More! – a page that gives added information about organic poultry and the benefits it gives.

Another is the Facebook account

Enterprise Resource Planning Software

• ProducePak provides easy to use software solutions for Poultry Farm management for meat production. The powerful ProducePak Poultry Farm ERP suite makes every day activities easier and more profitable whilst allowing you to maintain higher quality, staff performance, cost control, and traceability levels.

• The primary focus of the system is to improve: • • Business & activity control • • traceability practices • • business profit enhancement • • cost management and control • • budget management • • staff accountability and management

practices

Enterprise Resource Planning Software

FLOOR PLAN:Metro Manila

FLOOR PLAN:San Jose, Batangas

Gate

Warehouse

Additional Poultry-Broiler House (for future expansion)

Farmer’s Quarter

Regional Office

Truck

Truck

Additional Poultry-Broiler House (for future expansion)


PLAN FOR PLANT IN BATANGAS

Finance Department

Accomplishments

• Budget Allocation • Key Financial Indicators • Projected Income Statement/Profit and

Loss • Projected Cash flow • Break-even Analysis • Projected Balance Sheet• Business Ratios

Budget

• OrganiKo Budget Proposal• OrganiKo Budget Allocation

KEY FINANCIAL INDICATORS • Market Share:

– It takes up about 14% of the agricultural produce in the country• Growth:

– With a growth of 1.53% in 2009 and met with the official growth target of 2% by the end of 2010. However, total chicken population increased by a mere 0.17% from 158.66 million in 2009

• Opportunities: – The creation of organic chicken could be a revolutionary step in reaching another market segment, the

Muslim population with 3.55 million in 2009, by creating halal certified chicken products.• Backyard producers:

– Defined as having less than 100 chickens, this segment comprises 49% of the total chicken population in the Philippines with broilers raised in commercial farms at 33% and layers at 18% in 2009.

• Imports:– An increase in poultry imports from US (47%), Canada (38%), and Brazil (21%) poses a danger to the local

livestock industry. Government is unable to prevent this totally because of World Trade Organization Free Trade Agreements.

• Agricultural Landscape:– Poultry farms are constantly threatened with impending typhoons and other natural disasters particularly

in the Luzon area.

Master Budget

• Master BudgetA. Operating Budget

1. Sales2. Production Volume3. Material Cost4. Materials Purchases5. Direct Labor6. Factory Overhead7. Cost of goods sold8. Selling Expenses9. General and Administrative Expenses

B. Financial Resources Budget• 1. Budgeted Statement of Financial Position• 2. Budgeted Cash Flow StatementC. Capital Expenditure Budget

• Sales• 47,750 chickens per operation x 7 operations in a year x @ Php 255 each = Php

84,787,500.00 •

• Production Volume• 47,750 chickens per operation x 7operations = Php 334,250.00• • Material Cost• Raw Materials:

Chicken Php 8,400,000.00Poultry Feed/Medication 20,048,000.00Packaging plastic 400,000Total Php 28,848,000.00

•

Operating Budget

• Materials PurchasesPrice Quantity TOTAL

White Bond/Copy paper short (300 pcs) P79.00 200 34 Php 6800

White Bond/ Copy paper long (300 pcs) P91.00 220 34 7480

Best Buy Ledger Notebook 8 1/4 Inches x 11 Inches PHP 21.00 21 21 441

Veco Record Book PHP 55.50 55.5 36 1998

WRITING MATERIALS

Mongol 2 pencil 12s PHP 64.75 64.75 30 1942.5

TITUS ball pen (pc) PHP 5.00 5 125 625

Best Buy Pals Highlighter 2's PHP 23.00 23 34 782

Touch & Go Correction Fluid PHP 32.50 32.5 42 1365

Pentel N850 4.2 Permanent Marker PHP 32.7532.75 41 1342.75

Faster Whiteboard Marker PHP 33.00 33 41 1353

Operating Budget

Operating BudgetORGANIZERS Folder Short; 12 pieces PHP 56.00 56 41 2296Long Folder 12s PHP 68.00 68 41 2788Best Buy Premium Puncher 8cm PHP 92.75 92.75 21 1947.75Best Buy Stapler with remover PHP 54.00 54 30 1620Staple Wire 1000 Pieces per box PHP 6.75 6.75 41 276.75Scotch Tape Adhesive #500 PHP 23.25 23.25 44 1023

Best Buy Pals So Cool Scissors PHP 13.75 13.75 20 275Paper Clip ordinary 100s PHP 12.75 12.75 46 586.5Fastener 10s PHP 9.00 9 47 423Plastic cutter PHP 8.00 8 20 160

Ink refill PHP250 (colored) 250 31 7750Ink refill PHP 170 (black) 170 31 5270Total 1031.75 789 Php 48,869.00

Operating BudgetDirect Labor

Direct Labor

Farmers Php 473,256.00

Plant Workers 788,760.00

Drivers 420,672.00

Total Php 1,682,688.00

Factory Overhead

Manufacturing overhead

Water Php 240,000.00

Electricity 4,000,000.00

LPG 120,000.00

Depreciation(Factory) 2,478,816.00

Cleaning Materials 8,750.00

Php 6,847,566.00

Operating BudgetCost of Goods Sold

Cost of Goods Sold

Direct Labor

Farmers 473,256.00


Drivers 420,672.00 1,682,688.00

Direct Materials

Chicks 8,400,000.00

Feeds and Medicine 20,048,000.00

Packaging Plastic 400,000.00 28,848,000.00


Water 240,000.00


LPG 120,000.00


Cleaning Materials 8,750.00 6,847,566.00

Manufacturing Costs

37,378,254.00

Operating BudgetSelling Expenses

Advertising

Php 3,364,080.00 Dues and Subscription

32,640.00

Transportation

Fuel (Delivery) 1,620,000.00

Fuel (Harvest) 75,000.00

Fuel (Pick-up Truck) 254,400.00

Toll Fee 138,240.00 2,087,640.00

Php 5,484,360.00

Operating BudgetGeneral and Administrative Expenses

Salaries

Php 15,650,686.64 Training

100,000.00

Insurance

6,000,000.00 Rent Expense

480,000.00

Office Supplies

48,869.00 Utilities Water 48,000.00

Electricity 300,000.00 348,000.00 License Permits

201,885.00

Percentage Tax (3%)

2,543,625.00 Depreciation(Office Equipment)

488,819.00

Php 25,861,884.64

FINANCIAL RESOURCE BUDGETBudgeted statement of Financial Position

OrganiKo Projected Balance Sheet

As of December 31, 2011

ASSETS

Current Assets Cash in bank Php 88,517,789.70 Inventory of unused office supplies 5,191.25 Total Current Assets 88,522,980.95 Fixed Assets

Land 800,000.00

800,000.00

Building 10,000,000.00

10,000,000.00 Machinery and equipment 9,894,080.00 Furniture and fixtures 2,444,095.00

Others 2,439,000.00

2,439,000.00 (LESS accumulated depreciation) 2,967,635.00 Total Fixed Assets (Net of dep) 22,609,540.00 Total Assets Php 111,132,520.95

LIABILITIES AND EQUITY

LIABILITIES

Current Liabilities -

Longterm Liabilities -

Total Liabilites 0.00

OWNER'S EQUITY Invested capital 100,000,000.00 Retained earnings (beginning) 0.00 Retained earnings (ending) 11,132,520.95 Total Owners Equity

Total Liabilities and Equity Php 111,132,520.95

FINANCIAL RESOURCE BUDGETBudgeted cash flow statement

OrganiKo Budgeted Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities:

Collection on sales Php 84,787,500.00 Other Income

32,000.00

Payments for:

Expenses 66,280,873.64 Percentage Tax 2,543,625.00 Income tax 4,862,480.41 73,686,979.05

Net cash inflow from operating activities

11,132,520.95

Cash flows from investing activities

Sale of furniture - Acquisition of additional equipment -

Net cash outflow from investing activities

-

Cash flows from financing activities

Loan amortization - Issuance of additional shares of capital

stock - Dividends - Net cash flow from financing activities

-

Net increase in cash and cash equivalents

11,132,520.95 Cash Balance, January 1, 2011

-

Budgeted cash balance, December 31, 2011

11,132,520.95

Capital Expenditure BudgetOrganiKo

Capital Expenditures Budget For the Year Ended December 31, 2011

Acquisitions

Equipment

Php 9,894,080.00

Furniture&Fixtures

2,444,095.00

Land

800,000.00

Plant Building

10,000,000.00

Less: Disposals

- Net Increase in plant, property and equipment Php 23,138,175.00

Breakeven Point AnalysisBreakeven Point Analysis

BEP SALES = Fixed Cost ÷ (1-Variable Cost)

= Php 31,346,244.64 ÷ = 31,346,244.64 ÷ 0.63355 = Php 49,477,415.13

BEP Sales Volume = BEP sales ÷ Chicken Selling Price

= Php 49,477,415.13 ÷ Php 255.00 = 194,029 chickens

Variable Cost

Raw Materials:

Chicken

Php 8,400,000.00

Poultry Feed/Medication 20,048,000.00

Packaging plastic 400,000 Php 28,848,000.00

Direct Labor

1,682,688.00

Factory Overhead:

Utilities

Water 240,000.00


LPG 120,000.00

Depreciation 2,478,816.00


TOTAL VARIABLE COST

37,378,254.00

Units to be produced

400,000

Variable cost per unit

93.45

Variable Ratio per unit

0.36645

Breakeven Point AnalysisFixed Cost

Salaries

Php 15,650,686.64

Advertising

3,364,080.00

Training

100,000.00

Percentage Tax (3%)

2,543,625.00

Transportation




Toll Fee 138,240.00 2,087,640.00

Utilities

Electricity 300,000.00

Water 48,000.00 348,000.00

Office Supplies

48,869.00

Dues and Subscription

32,640.00

Rent Expense

480,000.00

Insurance

6,000,000.00

License Permits

201,885.00

Depreciation (Office Equipment)

488,819.00

Php 31,346,244.64

Projected Income StatementOrganiKo

Projected Income Statement For the Month Ended December 31, 2011

Net Sales

Php 84,787,500.00

Less:Cost of Goods Sold

Direct Labor

Farmers 473,256.00


Drivers 420,672.00 1,682,688.00

Direct Materials

Chicks 8,400,000.00

Feeds and Medicine 20,048,000.00

Packaging Plastic 400,000.00 28,848,000.00


Water 240,000.00


LPG 120,000.00



Manufacturing Costs

37,378,254.00

Gross Profit

Php 47,409,246.00

Less: Non-Manufacturing Expense

Salaries

15,650,686.64

Advertising

3,364,080.00

Training

100,000.00

Insurance

6,000,000.00

Rent Expense

480,000.00

Office Supplies

48,869.00

Dues and Subscription

32,640.00

Transportation




Toll Fee 138,240.00 2,087,640.00

Utilities

Water 48,000.00

Electricity 300,000.00 348,000.00

License Permits

201,885.00

Percentage Tax (3%)

2,543,625.00

Depreciation(Office Equipment)

488,819.00

31,346,244.64

Add: Other Income:

32,000.00

Less: Other Expenses CSR

100,000.00 Net Profit

Php 15,995,001.36

Deductions (5%)

Php 799,750.07 Taxable Income

Php 15,195,251.29

Less: Corporate Income Tax (32%)

4,862,480.41 Net Profit after Tax

Php 11,132,520.95

Projected Income Statement

Business RatioGross Margin Ratio = Gross profit / Net sales

Gross profit = 47,409,246.00

Net sales = 84,787,500.00

Gross Margin Ratio 0.56

Net Profit Margin Ratio = Net Profit Before Tax / Net Sales

Net profit before tax = 15,995,001.36

Net sales = 84,787,500.00

Net Profit Margin Ratio 0.19

Return on Assets Ratio = Net Profit Before Tax / Total Assets


Total Assets = 111,132,520.95

Return on Assets Ratio 0.14

Return on Investment = Net Profit before Tax / Net Worth


Net worth = 100,000,000.00

Return on Investment 0.16

APPENDICES

• LOGO• POSTER• MASCOT• TELEVISION COMMERCIAL COST• CSR Cost

Thank You Very MuchPrepared by:

Executive Vice-Presidents

Chief Executive Officer

Documents

OrganiKo Corp. Budget Hearing 19 February 2011. MISSION To promote nutritional value amongst Filipinos and to serve as the cornerstone of a healthy nation