BARBIE’S CAKE STUDIO

A Feasibility Study

Presented to the School of Business, Hospitality and Tourism

Management

Divine Word College of Calapan, Calapan City

In partial fulfillment of the requirements for the Bachelor’s degree

of Business Administration

INGENIOUS BESHIES

ALCANO, NENETH P.

DE CASTRO, MARIEL C.

EVANGELISTA, APRIL MAE M.

May 2023
 CHAPTER I

COMPANY OVERVIEW

In this chapter, the vision, mission and objectives of the

business will be discussed revealing the reason why the business
exist, what it aspires to accomplish and how it will achieve its goals.
Moreover, the company’s logo will be displayed, providing the
respective meaning behind its design. Also, this chapter provides
an overview on what the business offers and its target market.

Introduction

On every occasion, whether it is a birthday, wedding,

graduation or anniversary, cakes are always present at the table
(Abbi, 2020; Aigbe, 2020; Lakhan, 2022). Several sweet treats may
be available at the market but cakes hold a special place in
everyone’s heart as nothing can replace their uniqueness. A cake
has the power to light up the party and make things extra special.
Thus, a celebration without a cake feels lacking and incomplete. At
present, buying cakes is now easier and smoother than ever thanks
to technology as with a touch of the screen, a cake can be bought
anytime and anywhere, without missing the celebration. However,
nothing can be more special and heartwarming than a personalized
cake on an important occasion (Abbi, 2020; Polar Puffs & Cakes,
2021; Lakhan, 2022). Hence, the cake industry has witnessed a
major trend change where cakes can be personalized as per one’s
own choice.
 A baking studio is a specialized area where baking classes,
workshops, and events take place (My Tunbridge Wells, 2023). It
is a place equipped with all the necessary tools and equipment
needed for baking, which customers can freely use without
restraint. Baking studios commonly offer a range of baking classes
(e.g., pastry making, bread making, cupcake decorating, and cake
decorating) to beginners and experienced bakers (My Tunbridge
Wells, 2023). However, a trend for Do – It – Yourself baking studios
has been gradually growing since the COVID – 19 Pandemic
started. The people’s interest has been piqued by the unique
concept of baking and decorating their cake, without taking any
formal baking classes. The idea of baking and decorating their cake
regardless of their baking level and skills allows the customers to
enjoy and just have fun while unleashing their creativity through
baking. At present, there are two popular DIY baking studios found
in the Philippines (i.e., Bakebe and IDIM DIY Bakery) which
garnered plenty of different customers, from families, groups of
friends and couples to amateur and skilled bakers. Hence, the
demand to experience this innovative baking concept among
customers is proven to be existent, which continues to grow as time
passes by. However, a market gap remains for people who have
limited free time on their hands such as students swamped with
school activities and individuals working daily on a tight schedule.

Barbie’s Studio is an expansion idea of Barbie Cakes which

targets customers who desire to personalize the cake they want to
give to their special someone yet only has limited free time to do it.
Unlike the trending DIY baking studios, Barbie‘s Studio does not
have any baking sessions and solely offers cake decoration.
Hence, making it “the perfect place for people who have limited free
time but have the fondness of personalizing the cake they want to
give to their loved ones”. Barbie Cakes aims to become Mindoro’s
exceptional customized provider of cakes and other bakery
products offering people delicious quality products that make every
celebration meaningful and memorable.

Company Logo and Its Description

Figure 1. Company Logo

Barbie Cakes is a cake business that specializes in providing

its customers with personalized cakes and seeother bakery
products (i.e., mini donuts). The name “Barbie” is derived from the
owner’s name, Ms. Barbie Jayne C. Atienza, added with the word
“Cakes” representing the primary product of the business.
Moreover, “2019” can be found below the word “Barbie Cakes”
indicating when the business began its operations.

Since the owner’s name is similar to the famous cartoon

character named Barbie, the business referenced that character
using a black silhouette and modified it into holding a pink cake
producing a memorable icon for the customers to remember. The
logo has three primary colors namely pink, white and black. Pink
represents love indicating how Barbie Cakes share love and bring
happiness to their customers through delicious customized cakes.
White is wisely used to contrast the black silhouette at the center,
highlighting the outline of the icon. Black, on the other hand, is used
as the character’s silhouette reflecting the mystery behind the
owner of Barbie Cakes and her offered products.

Lastly, the big pink circle that encloses the icon inside
represents the totality and completeness of the business. Simply
speaking, it signifies that Barbie Cakes is a total package as any
cake can be made according to the taste and preferences of the
customers, from the flavor of the cake to its design. Hence,
whatever cake the customers desire, Barbie Cakes is there to make
it happen.

Mission Statement

Sharing love and bringing happiness to people with delicious

quality cakes and other bakery products making every celebration
meaningful and memorable.
Vision Statement

Becoming Mindoro’s exceptional customized provider of

cakes and other bakery products bringing joy and making
celebrations memorable.

Markets and Services

Barbie Cakes was established in the year 2019 during the

peak of COVID – 19 pandemic and from then, it has gradually
created its name locally. Despite starting during the pandemic, the
business was not phased at all, instead, it was able to strive and
grow through its utilization of different marketing mix strategies. In
this regard, Barbie’s Studio (i.e., the expansion idea of Barbie
Cakes) will also be using and implementing its former marketing
mix strategies.

Barbie’s Studio, an expansion idea of Barbie Cakes,

provides its customers with a place where they can personalize the
cake they will be giving to their loved ones. The studio offers the
customers with materials and equipment needed to decorate the
cake. The customers only need to choose one (1) flavor of cake,
three (3) icing colors, and two (2) toppings they want to incorporate
in their cake. This will then be paid for and given to the customers
as a packaged deal. The packaged deal comprising one (1) flavor
of cake, three (3) icing colors, and two (2) toppings will amount to
₱450.00. With the product offered, Barbie’s Studio will be targeting
sentimental individuals and people who have limited free time but
are looking for ways to personalize the cake they want to give to
someone.

Barbie’s Studio will be located in San Vicente East, Calapan

City where it will be built beside Barbie Cakes. Hence, it will serve
as an extended area of the business that will solely be utilized by
customers who seek to create a personalized cake. The location of
Barbie’s Studio is a walking distance of the largest public high
school in Oriental Mindoro, the Oriental Mindoro National High
School, beside the highway road where there is a high foot traffic,
making it easily accessible to potential and target customers.
However, to successfully attract and secure customers, Barbie’s
Studio will be implementing various strategies to market and sell its
products.

Objectives of the Study

General Objective

Barbie’s Studio aims to provide customers, who have

limited free time, a place to personalize the cake they want
to gift to their loved ones.

Specific Objective

The specific objectives of Barbie’s Studio comprise

the following:

• To introduce a new concept of a cake studio in

Calapan City where customers can directly
 decorate their cake without the hassle of
baking.

• To attract sentimental customers who are

looking for ways to personalize their cake
before giving it to their loved ones.

• To provide a place for customers where they

can freely select decorating materials (i.e.,
icing color and cake toppings) to personalize
their chosen flavored cake.

• To create another source of income for Barbie

Cakes through its expansion idea, Barbie’s
Studio.

• To increase the customer base of Barbie

Cakes by providing them with a unique
experience of personalizing the cake they will
be gifting to their loved ones.
 CHAPTER II

PRODUCT AND SERVICE

This chapter provides important details of the product that

Barbie’s Studio will offer, discussing the product’s uniqueness and
the process involve in producing the product along with its
additional service to the customers. Further information about the
target market will be revealed together with Barbie’s Studio’s
primary competitors. Also, this chapter includes the expected
development of the expansion idea during its years of operations.

Product and Service Description

Since 2019, Barbie Cakes has been providing its customers

with delicious quality cakes tailored according to their tastes and
preferences. The business has been sharing its love and bringing
joy to the people through the different cakes they created. In the
past, the products sold by the business were only limited to mini
cakes which are commonly vanilla and chocolate - flavored but now
mini donuts are also added in their list of products, having four (4)
different flavors (e.g., chocolate, white chocolate, strawberry and
matcha) and toppings (e.g., mallows, sprinkles, nuts, and kisses).
 Figure 2. Products of Barbie Cakes

With the current customer base of Barbie Cakes, it is now

prepared to take the next step and expand its operations by building
a cake studio. Barbie’s Studio is a place where customers can
personalize their cake by decorating it themselves before giving it
to their loved ones. In this place, customers can use decorating
materials and equipment letting their inner creativity shine through,
giving their cake a touch of personalization. Barbie’s Studio
provides its customers with several choices of cake flavor (e.g.,
vanilla and chocolate), icing color (e.g., red, orange, yellow, green,
blue, violet, white and black) and cake toppings (e.g., sprinkles,
marshmallows, chocolate and cake toppers). However, customers
are limited to choose only one (1) flavor of cake, three (3) icing
colors, and two (2) toppings, which they desire to use in decorating
their cake. The mentioned items will then be paid for and given to
the customers as a packaged deal. Afterwards, they can proceed
inside the studio where their desire to create a personalized cake
will happen.
 Since the products of Barbie's Studio are mostly pre - made
such as the cake bread and the icing, the store will be preparing it
daily beforehand providing five (5) ready - made cake and seven
(7) tubs of icing comprising the following colors: red, orange, yellow,
green, blue, violet, white and black. The toppings (e.g., sprinkles,
marshmallows, chocolate, and cake toppers), on the other hand,
will be purchased in bulk and will be properly stored ensuring its
quality will remain for a long period of time.

In the preparation of the ready - made cake, the kitchen staff

will have to first acquire the ingredients needed, which are divided
into two (2) primary categories namely the wet and dry ingredients.
The wet ingredients include water, buttermilk, eggs, oil, and vanilla
extract while the dry ingredients comprise cake flour, sugar, salt,
cocoa powder, baking powder and baking soda. Afterwards, the
equipment (e.g., measuring cups and spoons, cake pans,
parchment papers, whisk, bowls, and oven) will also have to be
prepared to avoid any delays in the process of baking the cake. As
the cake completely sets in the oven, it will then be left to cool down
for a few minutes and then be placed in the refrigerator ready for
the customers to avail. The kitchen staff will be handed out a recipe
to be strictly followed, ensuring the ready – made cakes meet the
quality and taste of Barbie Cakes.

At the same time, the other kitchen staff will also be

preparing the different color of icing that customers will be using
which consists of red, orange, yellow, green, blue, violet, white and
black. In creating the frosting, the kitchen staff will be needing the
following ingredients: butter, sugar, vanilla extract, milk, and food
coloring (e.g., red, orange, yellow, green, blue, violet, white and
black). Once the frosting has been made, it will then be placed in
an airtight container at room temperature to prolong its product life.
Similar with the kitchen staff in – charge of the ready – made cake,
a recipe will also be provided to make sure that the quality and taste
of the frosting is up to Barbie Cakes’ standard.

With various occasions to be celebrated, Barbie Cakes is

always present to provide its customers a cake tailored to their taste
and preferences and now, they are prepared to take it to the next
step with their expansion idea (i.e., a cake studio). The cake studio
targets people who have limited time on their hands but desire to
gift their loved ones with a cake that holds a sentimental value,
making it meaningful and memorable for the recipient. Hence,
Barbie Cakes’ studio is the perfect place for these people to give
their cake a touch of personalization, making the recipient feels
extra special on their important occasion.

The cake studio will be offering a packaged deal to its

customers comprising one (1) flavor of cake, three (3) icing colors,
and two (2) toppings. The cake flavor will be limited to vanilla and
chocolate that will only be available at a standard size of four (4)
inches by three (3) inches. A variety of icing color will be accessible
for the customers to choose from consisting of red, orange, yellow,
green, blue, violet, white and black. Lastly, toppings commonly
found in a cake, such as sprinkles, marshmallows, chocolate, and
cake toppers, will also be included in the packaged deal for them
to release their creativity in decorating the cake, making it more
personalized.
Market Comparison

With the shifting customer preferences, a new trend has

risen in the cake industry involving customization (Gupta, 2020;
Delyscious Treats, 2022; Sugar Whipped Cakes, 2023).
Nowadays, people are after businesses that offer personalized
experiences, and buying cakes is no exception. Hence, businesses
have transitioned from selling generic cakes (i.e., pre – made cakes
that are mass – produced and available for purchase at bakeries
and cake shops) to selling customized cakes (Riggs, 2023). At
present, Barbie Cakes is providing its customers with both types of
cake (i.e., generic and customized). However, the business is
planning to further elevate the way people buy a cake for their loved
ones in Calapan City by building a cake studio, a place for people
to personalize their cake.

Stage of Development

Barbie’s Studio, an expansion idea of Barbie Cakes, aims to

provide its customers (i.e., students and working individuals) a
place to personalize the cake they want to give to someone
celebrating an important occasion, making them feel extra special.
The cake studio will be offering a packaged deal to its customers
comprising one (1) flavor of cake, three (3) icing colors, and two (2)
toppings. This section illustrates the stages of the product life cycle
of Barbie’s Studio comprising its introduction, growth, maturity, and
decline in the market.
Introduction

Barbie’s Studio will be heavily focusing its resources

in its marketing efforts upon its entry in the market,
highlighting its innovative concept and the personalized
experience it can bring to existing and potential customers.
Moreover, the idea of “creating a cake that is personalized
without the hassle of baking” must also be given emphasis.
In this way, customers will become interested in the product
offered, which may encourage them to visit the studio and
avail it. Since the idea is uniquely new in the area, demand
for this product will be low at its initial stage. Thus, Barbie’s
Studio must develop different marketing and sales strategies
to attract and motivate customers to purchase its offered
packaged deal.

Growth

Once the product successfully enters the market,

demand in this stage will gradually grow as customers will
start availing the packaged deal in time, they want to give a
cake to someone celebrating a special occasion. Despite
that, Barbie’s Studio must continue its marketing efforts,
especially in social media, to generate more customers,
leading to increased sales and profit. The studio will be
monitoring and adjusting the pricing strategy of its product to
maintain its position in the market.
Maturity

At this stage, Barbie’s Studio has been established in

the market together with other businesses offering the same
product. Thus, product improvement will be a crucial step for
Barbie’s Studio to maintain its loyal customers and, at the
same time, encourage customer retention. By offering
additional and new cake flavors, icing colors, and cake
toppings, the business will be able to continue prospering in
the market, keeping its stable market share.

Decline

Competition, at this stage, is cut – throat as

businesses fight over to sell their products to customers. In
this case, some businesses will slowly decline as the market
continues to become oversaturated. Therefore, Barbie’s
Studio will be expanding its product line to prevent its
product from possibly declining. By offering new baked
products to personalize such as cupcakes and donuts, the
business will be able to acquire a wider customer base and
prolong the lifecycle of its products.
 CHAPTER III

INDUSTRY AND MARKETPLACE ANALYSIS

This chapter will be discussing the analysis on the industry,

marketplace, customers and the competitors of the proposed
business. This chapter will also reveal the supply and demand of
the product and its forecasted market share.

Industry Analysis

The baking industry, known as the grain – based food

industry, comprise different businesses that cater to people’s
appetite for tasty breads, cakes, pies, pastries and other similar
baked goods (Woodruff, 2019 and Coleman, 2023). Under this
category, cake is one of the prominent products that is available to
the market and is globally consumed by many especially during
celebrations. In 2021, the market size of bakery and cereals is
valued at $2.04 billion with a projected compound annual growth
rate of 3% (GlobalData, 2022). Over the years, the baking industry
has witnessed a major trend involving the integration of
customization (Gupta, 2020; Delyscious Treats, 2022; Sugar
Whipped Cakes, 2023). Therefore, businesses have transitioned
from selling generic cakes (i.e., pre – made cakes that are mass –
produced and available for purchase at bakeries and cake shops)
to selling customized cakes (Riggs, 2023). At present, customers
in the baking industry are in a search for businesses that offer
personalized experiences.
 Due to the changing customer preferences, the baking
industry has strived to revolutionize the way it delivers experience
to its customers by integrating the concept of personalization. At
present, the purchase of customized cakes has become prevalent
around the world due to the value it brings to the table. However,
customers are slowly shifting to the purchase of DIY (Do – It –
Yourself) cakes, which are now gradually making their way in the
market. This new type of cake has pushed the boundaries of
innovation in the baking industry through the establishment of
baking studios in different countries like Canada, Taiwan, and
Malaysia. In the Philippines, the people have begun to take an
interest in the craft of making DIY cakes through various social
media marketing activities on platforms like Facebook, Instagram,
and TikTok etc. Hence, demand for baking studios is seen to be
gradually growing in the country’s market.

The baking studio is a business concept that has been newly

established during the COVID – 19 Pandemic. It is an innovative
concept that enables customers to gain personalized experiences
through the craft of making DIY cakes. A baking studio provides
people with a place to create their own cake by allowing them to
bake the cake from scratch and decorate it. With people seeking to
personalize the cake they want to give to someone, a huge demand
is predicted to be driven in the market, especially among Zoomers
and Millennials.
Marketplace Analysis

Calapan City, the provincial capital of Oriental Mindoro, is

known to be the center of commerce in the province. Hence, the
reason for its booming population reaching up to 145, 180, which
includes the target customers of Barbie’s Cake Studio. The city’s
high population is due to a big number of residents aged from 15 –
39 years old, which falls under the category of Zoomers and
Millennials. According to research, Zoomers and Millennials are
found to seek businesses that offer personalized experiences.

At present, there are only two existing baking studios in the

Philippines namely IDIM DIY Bakery and Bakebe. These two
businesses provide its customers a place to make their own cake
through offering packaged deals. Compared to Barbie’s Cake
Studio, the business allows its customers to personalize their cake
by decorating it themselves without the hassle of baking. In this
way, individuals who have limited free time on their hands can still
give someone a cake that is full of meaning and is personalized
according to the recipient’s taste and preferences.

Barbie’s Cake Studio, an expansion idea of Barbie Cakes,

aims to target the residents of Calapan City with the age ranging
from 15 to 34 years old whom has limited free time on their hands
yet desire to personalize the cake they want to give to someone.
The business will be offering its customers a packaged deal
comprising one (1) flavor of cake, three (3) icing colors, and two (2)
toppings.
Market Segmentation

The target market of Barbie’s Studio, an expansion idea of

Barbie Cakes, comprise people who have limited free time on their
hands but desire to personalize the cake they want to give to
someone celebrating a special occasion. The business will be using
market segmentation to determine its prospective buyers which will
be grouped together based on their demographics, psychographics
and common interests. In this way, Barbie’s Studio will be able to
develop different marketing and sales strategies that are catered to
fit its target market, effectively attracting and driving their
purchasing intention.

Barbie’s Studio narrowed down its target market to certain

age groups, focusing on individuals between 15 to 34 years old,
whom perfectly conform to the characteristics of the target market
of the business. The table below displays the data provided by the
Philippine Statistics Association (PSA) consisting the latest record
of the residents’ population in Calapan City during the year 2020,
which are divided according to their sex and age group.
 Number

Age Group and Year

Both Sexes Male Female

2020

All Ages 145,180 72,389 72,791

0–4 13,154 6,842 6,312

5–9 13,777 7,153 6,624

10 – 14 14,557 7,511 7,046

15 – 19 14,346 7,232 7,114

20 – 24 13,386 6,695 6,691

25 – 29 11,869 5,931 5,938

30 – 34 10,953 5,471 5,482

Table 1. Market Segmentation of the Residents’ Population in Calapan

City by Sex and Age Group

To determine the estimated residents’ population in Calapan

City for the next following years, Barbie’s Studio will be using the
annual growth rate provided by the Philippine Statistics Association
(2020), which is 1.56%. Hence, the annual growth rate will be
multiplied to the sum of the target market’s population to calculate
its projected population for the next five (5) years.

Year Growth Rate Estimated Population

(1.56%)

2020 60,605

2021 1.56% 61,550

2022 1.56% 62,511

2023 1.56% 63,486

2024 1.56% 64,476

2025 1.56% 65,482

2026 1.56% 66,504

2027 1.56% 67,541

2028 1.56% 68,595

2029 1.56% 69,665

Table 2. Estimated Population of Barbie’s Studio’s Target Market in

Calapan City by Sex and Age Group (Ranging from 15 – 39 years old)
 Barbie’s Studio will be conducting a market survey to collect
information about its target customers involving their
demographics, psychographics, used – based data, projected
demand and preferred price range. The business used Slovin’s
formula to calculate its sample size from the estimated resident’s
population in Calapan City using a 5% margin of error. Through this
method, Barbie’s Studio will be able to determine the sample size
it needs to conduct a market survey.

Below is the formula used to determine the total number of

respondents:

WHERE: n = sample size N = total population

e = margin of error (5%)

Therefore:

𝑵
𝒏=
𝟏 + 𝑵𝒆𝟐

𝟔𝟗, 𝟔𝟔𝟓
𝒏=
𝟏 + 𝟔𝟗, 𝟔𝟔𝟓 (𝟎. 𝟎𝟓)𝟐

𝟔𝟗, 𝟔𝟔𝟓
𝒏=
𝟏 + 𝟔𝟗, 𝟔𝟔𝟓 (𝟎. 𝟎𝟎𝟐𝟓)

𝟔𝟗, 𝟔𝟔𝟓
𝒏=
𝟏 + 𝟔𝟗, 𝟔𝟔𝟓 (𝟎. 𝟎𝟎𝟐𝟓)
 𝟔𝟗, 𝟔𝟔𝟓
𝒏=
𝟏 + 𝟏𝟕𝟒. 𝟏𝟔

𝟔𝟗, 𝟔𝟔𝟓
𝒏=
𝟏𝟕𝟓. 𝟏𝟔

𝒏 = 𝟑𝟗𝟖 𝐑𝐞𝐬𝐩𝐨𝐧𝐝𝐞𝐧𝐭𝐬
 Survey Results

Section I. Demographics

A.

B.
C.

Section II. Psychographics

A.
 B.

C.
 D.

Section III. Used – Based Data

A.
B.

C.
 Section IV. Product Demand

A.

B.
Projected Demand

Demand pertains to a consumer’s desire to purchase goods

and services and willingness to pay a specific price for them
(Potters, 2023). By understanding what drives customers’ demand,
Barbie’s studio will be able to establish different marketing and
sales strategies to further attract customers into purchasing,
boosting the sales and profit of the business.

Projected Demand Computation

Barbie’s Studio will be computing the projected

demand of its product using the following formula:

Projected Demand = Market Population x Gross

Market Acceptability x Frequency of Availing

WHERE:

• Market Population is based on the provided data of

Philippine Statistics Association (2020). In computing the
market population, Barbie’s Studio utilized the 5% annual
growth rate and multiplied it to the total estimated population
of Barbie’s Studio’s target market in Calapan City which is
divided according to sex and age group ranging from 15 –
39 years old.

• Gross Market Acceptability is based on the survey results

under Section IV – A, which yielded an 82.7% demand for
the packaged deal, comprising one (1) flavor of cake, three
(3) icing colors, and two (2) toppings, offered by Barbie’s
Studio.
 • Frequency of Availing is based on the survey results
under Section II – B, garnering a 56.1% majority for people
who monthly purchased a cake once to give to someone.
The frequency is computed using the formula: 1 cake (i.e.,
monthly purchase) x 12 months = 12 cakes annually

PROJECTED DEMAND FOR PACKAGED DEALS

Year Market Gross Market Frequency of Projected

Population Acceptability Availing Demand

2025 65,482 82.70% 12 649,843

2026 66,504 82.70% 12 659,981

2027 67,541 82.70% 12 670,277

2028 68,595 82.70% 12 680,733

2029 69,665 82.70% 12 691,352

Projected Supply

Supply is the total quantity of goods that a seller is willing

and capable to provide to its buyers (Ackermann, 2023).
Forecasting the supply will enable Barbie’s Studio to ensure a
steady procurement of the needed materials resulting to a smooth
business operations and meeting customer demand.

Projected Demand Computation

Barbie’s Studio will be computing the projected

supply of its product using the following formula:
 Projected Supply = Monthly Production x Number of
Months of Operation per Year

WHERE:

• Barbie’s Studio will be operating for the whole year, which

is equivalent to 12 months.

The monthly production of the packaged deal is computed

using the formula: 12 packaged deals (i.e., based on the ability of
Barbie’s Studio to create the two cake flavors daily) x 26 working
days = 312 packaged deals. It is projected that the daily production
of the packaged deals will yearly increase at 5% based on the
ability of Barbie’s Studio to create two cake flavors considering the
changing cost of raw materials and the skill of the manpower
required to produce the product.

PROJECTED SUPPLY FOR PACKAGED DEALS

Year Daily Monthly Number of Projected

Production Production Months Supply
2025 12 312 12 3,744
2026 12 312 12 3,744
2027 12 312 12 3,744
2028 12 312 12 3,744
2029 12 312 12 3,744

Demand – Supply Analysis

The demand – supply of Barbie’s Studio is calculated using

the following formula: Demand – Supply = Projected Demand –
Projected Supply
 DEMAND – SUPPLY FOR PACKAGED DEALS

Year Projected Demand Projected Supply Demand - Supply

2025 649,843 3744 646,099

2026 659,981 3931 656,050
2027 670,277 4128 666,149
2028 680,733 4334 676,399
2029 691,352 4551 686,801

Market Shares

To determine the market share of Barbie’s Studio, the

following formula will be used:

Market Share = Projected Supply / Projected Demand x 100

MARKET SHARE FOR PACKAGED DEALS

Year Projected Supply Projected Demand Market Share

2025 3744 649843 58%

2026 3931 659981 60%

2027 4128 670277 62%

2028 4334 680733 64%

2029 4551 691352 66%

Customer Analysis

Understanding the behavior of customers, their needs and

wants, and their preferences is the goal of every business. Hence,
customer analysis is a crucial aspect for businesses to focus on
which involves gathering information about a customer’s
demographics, buying patterns, product usage history, spending
habits, loyalty metrics and more (International Institute for
Management Development, 2023).

GEOGRAPHIC

Region IV – B (MIMAROPA)

City CALAPAN

District 1ST DISTRICT

Type of Community URBAN

The target customers of Barbie’s Studio reside in Region IV

– B (MIMAROPA) in the City of Calapan that is included in the 1 st

District. The customers are found to live in an urban community due

to the nature of their lifestyle that is either students attending school
or working individuals.

DEMOGRAPHIC

Age 15 – 34 YEARS OLD

Gender MALE (56.1%) and FEMALE (43.9%)

Occupation Status STUDENT, WORKING STUDENT, and EMPLOYED

Barbie’s Studio aims to target individuals ranging from 15 to

34 years old whom belong in the category of Gen Z and Millennials.
These two categories share a similar characteristic of seeking
businesses that provide personalized experiences, which perfectly
match the product that will be offered by Barbie’s Studio (Gorynski,
2023). Nowadays, the Zoomers and Millennials are craving for
personalization yet due to their nature of lifestyle being a student
and working individuals, they only possess a limited amount of time
to experience and enjoy a personalized service (Kant, 2021;
Dearmer, 2023; Gorynski, 2023). Since giving a cake has been a
big part of the world’s culture to celebrate important occasions (i.e.,
especially among Zoomers and Millennials), Barbie’s Studio has
taken the steps in transforming this cake culture with the touch of
personalization (Lafler, 2019). In this way, individuals who have
limited free time on their hands can still experience a personalized
service while, at the same time, create a cake that has meaning
and value, making the recipient feel extra special.

PSYCHOGRAPHIC

Do you like to give/buy a cake for someone?

YES 98%

NO 2%

The result of the survey reveals that 98% of the respondents

like to give or buy a cake for someone, which means that the culture
of giving cake to someone celebrating is predominant in the area.
 PSYCHOGRAPHIC

How many cakes do you purchase a month to give to someone?

ONCE A MONTH 56.1%

TWICE A MONTH 11%

THRICE A MONTH 6.8%

TWICE A YEAR 10.8%

THRICE A YEAR 5%

FIVE TIMES A YEAR 2.8%

It is revealed that majority of the respondents purchase a

cake once a month, yielding a 56.1%, which indicates that majority
purchase an average of twelve cakes a year.

PSYCHOGRAPHIC

Have you tried decorating a cake?

YES 68.9%

NO 31.1%
 PSYCHOGRAPHIC

Are you interested in personalizing or decorating a cake to give to

someone?

YES 82.7%

NO 17.3%

Based on the survey results, 68.9% of the respondents have

no experience decorating a cake. However, a greater percent
amounting to 82.7% indicates that they have an interest in the idea
of personalizing a cake they will be giving to someone. Thus,
majority of the respondents are shown to be open and accepting
with the concept involving personalizing a cake.

USE – BASED DATA

What flavor of cake do you usually purchase?

VANILLA 34.6%

CHOCOLATE 59.4%

MOCHA 1.8%

CARAMEL 1.5%

UBE 1%

Based on the survey result, vanilla and chocolate attained

the highest percentage, which is 34.6% and 59.4% respectively,
indicating that most of the respondents commonly purchase these
two cake flavors. Since vanilla and chocolate gained the two
highest percentage, Barbie’s Cake Studio will be using this as a
basis to develop their product. Hence, incorporating the customers’
preferences into their operations.

USE – BASED DATA

What color of icing do you prefer to be put in your cake?

RED 21.3%

ORANGE 23.6%

YELLOW 46.6%

GREEN 31.3%

BLUE 51.1%

VIOLET 47.1%

WHITE 61.7%

BLACK 17.3%

Barbie’s Cake Studio is planning to provide seven options of

icing color (i.e., red, orange, yellow, green, blue, violet, white and
black) to its customers. However, only three icing colors will be
included in the packaged deal that customers can avail. Based on
the survey result, the three icing colors preferred by the majority of
the respondents are the following: white (61.7%), blue (51.1%), and
violet (47.1%). Hence, the cake studio must provide a greater
quantity for the white, blue and violet icing. Meanwhile, the quantity
for the other icing colors will be produced according to its rank in
the survey, which means that black icing will have the least quantity
to be produced weekly as it gained the lowest percentage (i.e.,
17.3%) indicating that only a small number of customers prefer to
use black icing in personalizing their cake.

USE – BASED DATA

What toppings do you prefer to be put in your cake?

SPRINKLES 33.8%

MARSHMALLOWS 70.4%

CHOCOLATE 75.4%

CAKE TOPPERS 20.3%

Barbie’s Cake Studio is planning to provide four options of

cake toppings (i.e., sprinkles, marshmallows, chocolate, and cake
toppers) to its customers. However, only two cake toppings will be
included in the packaged deal that customers can avail. The survey
result revealed that chocolate and marshmallows are the preferred
cake toppings of majority of the respondents, yielding a 75.4% and
70.4% respectively. Therefore, the cake studio will be weekly
purchasing a high quantity of marshmallows and chocolate for the
customers to use. In choosing the chocolate option, customers will
be given a small pack of chocolate chips and two chocolate bars.
On the other hand, sprinkles and cake toppers will be purchased
weekly in moderate quantities since their percentages are still quite
high despite being the least two preferred toppings of cake.
Competitor Analysis

Every business aims to exceed their competitor in the

industry they have been established. Hence, conducting a
competitor analysis is a vital aspect for business to accomplish
which involves identifying competitors and researching its strengths
and weakness in order to evaluate potential opportunities for one’s
own business (Lyons, 2022 and Fairlie, 2023). Barbie’s Cake
Studio have gathered the following information regarding its
competitors, assessing the strengths and weaknesses relative to
each competitor.

COMPETITOR ANALYSIS

Competitor Price Strength Weakness Strategy

a. IDIM Semi - Offers a - Its - Usage of

DIY Exclusive wide reservation effective
Bakery Package: variety of system marketing
₱1,000.00 products strategies
per head
- Focuses
Exclusive on
Package: continuous
₱60,000.00 progress to
good for 60 become
pax and 3 the leading
hours DIY
exclusive Bakery in
use of Asia
baking
studio
 b. BakeBe The price of - Offers a - Expensive - The
cakes wide for students business
ranges variety of and ensures a
from products working high -
₱1,288.00 individuals quality DIY
to - Offers earning a cake can
₱2,288.00 plenty of minimum be crafted
different salary to
package purchase a
deals month
catered to
any
celebration

- Utilization
of a baking
app

a. IDIM DIY Bakery

IDIM DIY Bakery, the leading number one DIY Bakery, is

an international brand and the first Do – It – Yourself Bakery in
Asia which originated in Taiwan. IDIM means “I Did It Myself!”
emphasizing its out – of – the – box bakery concept in which
customers don’t just purchase cakes, but they also get to bake
and decorate their own cakes. On June 2019, Sucree Coco and
Love Inc. acquired a franchise deal with IDIM DIY Bakery
bringing this unique DIY bakery concept to the Philippines to
satisfy and tickle Filipinos’ craving for yummy sweets, delightful
and interesting foods, and exciting bonding moments shared
with family and friends.

[Link]
Price

The package deals offered by IDIM DIY Bakery range

from ₱1,000.00 to ₱60,000.00 depending on the type of
package the customers want to avail. The semi exclusive
package costs ₱1,000.00 per head while the exclusive package
amounts to ₱60,000.00, which is good for 60 pax including a 3
hours exclusive use of baking studio. The inclusions of a baking
session comprise the recipe, pre – set ingredients, baking
equipment usage, cake expert’s assistance plus a box and a
ribbon appropriate to the chosen cake or dessert.

Strengths and Weaknesses

IDIM DIY Bakery offers a wide range of product selection

consisting cakes, desserts, and pastries. Under the cake
category, it is further divided into classic cakes, decorated
cakes, chocolate cakes, cheesecakes, fruit cakes, customized
cakes, and birthday cakes. In this aspect, IDIM DIY Bakery has
a great advantage in terms of providing customers with plenty
of cake choices to choose from. Due to the reservation system
utilized by the business, walk – in customers are difficult to
accept especially during booked days, discouraging them from
trying the business.

Strategy

The marketing strategies implemented by the business

are tailored to effectively attract its customers into purchasing
the product. With the social media marketing activities done by
the business in various platforms (e.g., Facebook, Instagram
 and TiktTok), awareness about IDIM DIY Bakery and its product
have spread nationally. In addition, the business has always
valued customer satisfaction and progress. Hence, leading
them to further improve their brand along with their products and
services.

b. BAKEBE

Bakebe is Hong Kong’s first and only co – baking studio that

teaches people to bake with an app. The business stands for
baking the infinite possibilities. Thus, the word “be” pertaining to
being whatever you wish to be in the baking world. The founder,
Venus Chi, has always envisioned to be able to give everyone
the opportunity to create something with their own hands for
themselves and those they love, resulting to the creation of
Bakebe. Bakebe is a space that allows people to enjoy and
experience the magical transformation of raw ingredients into
delicious pastries with as little stress as possible, by combining
the expertise of professional baking experts with the Bakebe
APP.

[Link]

Price

The price of the packaged deals offered by the business

ranges from ₱1,288.00 to ₱2,288.00, which may be expensive
for people to purchase monthly especially among students and
working individuals earning a minimum salary.
Strengths and Weaknesses

Using modern technology, the business has

revolutionized one’s baking experience through a user – friendly
application. Bakebe APP is designed with detailed instructions,
graphics, videos and a step – by – step guide that enables
customers to complete their chosen baking project from start to
finish all by themselves. Bakebe has a great advantage in terms
of the products it offered. Similar with IDIM DIY Bakery, Bakebe
also offers a wide variety of products including cakes, tarts,
macaroons, cupcakes, donuts, and cookies etc. Aside from that,
the business provides its customers with plenty of packaged
deals to choose from such as team building package, birthday
party package, and bridal shower package to name a few.

Strategy

The business strives to develop new recipes that

customers will surely enjoy to bake and happily give to their
loved ones by teaming up with talented pastry chefs who have
worked in Michelin starred restaurants. In this regard, Bakebe
is able to ensure that its customers can craft a high – quality DIY
cake with just themselves, letting them experience the joy of
creating something for their family and friends using their own
two hands.
 CHAPTER IV

MARKETING PLAN

This chapter outlines the different strategies that Barbie's

Studio will be using in advertising, promoting and selling their
personalized cake.

Target Market Strategy

Every business has to know who their target customer is in

order to decide where and how to focus its resources when it comes
to selling and promoting its products and services. Barbie’s Studio
has decided to adopt a niche marketing approach for its target
market, as its current target market profile is too specific, too
specialized, and too well-defined. Barbie's Studio will be able to
sustain customers that is essential to the expansion and prosperity
of the company by employing this method of marketing.

Sentimental People

The primary target market for Barbie's Studio consists

of sentimental individuals who enjoy offering handmade gifts
to others. People frequently purchase cakes for celebrations
or other occasions. In the meantime, those who wish to show
their love through effort could find great satisfaction in
creating and baking their own cake and decorating it. These
individuals have to be willing and eager to buy the packages
that Barbie's Studio will be offering, wherein they are able to
customize and create their own cake.
 People Who Have A Limited Free Time

In the midst of a hectic schedule, carving out time for

baking can be a delightful and rewarding experience. Aside
from Sentimental People, Barbie's Studio will also be
targeting people who have a limited free time but still wants
to make an effort to their loved ones by means of
personalizing a cake. Barbie's Studio will be offering a
ready-made cake wherein the customer will just personalize
its design based on what they want. In that way, customers
can save their time and also, make it into a memorable one.

Product and Service Strategy

This comprehensive strategy guarantees long-term viability,

builds brand loyalty, and improves the consumer experience.
Michael Porter pointed out the significance of strategic decision-
making in improving product and service portfolios when he said,
"The essence of strategy is choosing what not to do" (Porter, 1996).
Additionally, it helps companies build an effective plan for
producing and educating customers about their goods and
services. Consequently, by adjusting their plan in accordance with
their efficacy in the market, they enable firms to make tactical
choices.

Below are the strategies that Barbie's Studio will be using during its
operating:
a. Economy Pricing Strategy

The goal of this strategy is to offer clients high-quality goods

at reasonable prices. Barbie's Studio will set the prices for its goods
and services based on an economic pricing plan. In that way,
Barbie's Studio will be able to compete in the market and attract
and keep target and potential clients by sticking to an economical
pricing approach.

b. Focus Strategy

This strategy will also be utilized in the introduction and

growth stage of the products and services lifecycle. Since Barbie's
Studio is using a business - to – consumer (B2C) model, this
strategy will be able to help the business in developing and
improving its product to cater to the target customers. Therefore,
Barbie's Studio will be able to develop further according to the
needs and wants of the target customers.

c. Product Development Strategy

Barbie's Studio is committed to elevating its customers'

experiences, which is why they are launching a planned strategy to
expand and enhance their product line. Understanding how
important diversity is for satisfying taste buds, the studio is about to
bring out a number of new offerings, such as a wider range of cake
flavors, a colorful palette of icing colors, and a tempting collection
of cake decorations. With this initiative, Barbie's Studio hopes to
enhance the joy of celebration by providing a more customized and
personalized cake selection process, further reflecting the brand's
dedication to accommodating a wide range of preferences. Prepare
to indulge in a delicious blend of flavors and inventiveness as
Barbie's Studio elevates the cake-making technique to a new level.

d. Product Expansion Strategy

Well-known for its personalized cakes, Barbie's Studio will

also offer a wide range of other delicious delicacies, including
cupcakes, cookies, mini donuts, and other pastries. In addition to
expanding the studio's product offering, this strategic diversification
protects against future business downturns. Barbie's Studio may
reach a wider customer base and take advantage of a range of
tastes by offering a selection of delicious treats. This varied menu
guarantees ongoing patron interest, cultivates patron loyalty, and
averts stagnation. Adapting and growing the product line is an
important strategy for business resilience in a market that is always
changing. This helps Barbie's Studio to continue being a popular
location for delicious treats.

Pricing Strategy

Its proponents have chosen to employ cost-based pricing in

order to guarantee that Barbie's Studio is profitable, given that it is
an expansionary business. The amount of overhead and total direct
material consumption in the manufacture of each package will be
disclosed by the proponents. The formula that the supporters intend
to employ is (Cost of Direct Materials + Overhead Cost) x Markup
Percentage = Selling Price. Also taken into account when
determining the product's selling price is the pricing of the product
in the new market.

PRODUCT PRICING

Items Cost

Cake Bread ₱113.96

Icing ₱40.13
Direct Materials
Toppings
₱14.00
Cake Boxes ₱6.00
Packaging Cost Ribbon ₱3.00
Candles ₱2.00
Cahier, Kitchen Staff (2),
Labor Cost ₱125.58
and Owner

Electricity ₱12.49
Overhead Cost Water ₱3.53
Rent ₱25.64

Total Cost ₱346.33

Mark – up (30%)
₱103.90

Price per Package ₱450.23

Selling Price ₱450.00 per package

Advertising and Promotion Strategy

Advertising is the paid presentation of concepts, products,

and services by an ad sponsor in a non-personal setting. (Buskirk)
Thus, advertising is the greatest means of customer interaction,
assisting businesses in educating their target market about their
name, goods, and services. On the other hand, promotion is the
particular combination of public relations, personal selling,
advertising, and direct marketing techniques that the business
employs to develop relationships with customers and effectively
communicate their value. Therefore, it is necessary for all
businesses to develop strategies that will effectively advertise and
promote their products.

Below are the strategies that Barbie's Studio will be using to

advertise and promote its product:

a. Online Advertising

Barbie's Studio intends to leverage social media platforms,

specifically Facebook, to exhibit its offerings through content
production. This will involve publishing blogs and videos that
emphasize the characteristics and applications of the products and
services. Given that the Barbie Cakes page already exists, the
proponents will simply publish a public announcement about the
launch of the new expanded firm so that customers in the future are
aware of the goods and services that will be provided. Barbie's
Studio will be able to build its brand and social media presence with
the help of this strategy, drawing clients who are looking for an
exciting, inexpensive, and enjoyable way to pass the time.
b. Print Advertising

In order to promote its goods and services and draw in more

clients, Barbie's Studio will use pamphlets and flyers. Flyers and
pamphlets will be distributed by the supporters to the target
audience and potential customers. This approach will enable the
company to invest a minimal sum of money in a successful
marketing plan. Before the company's operations begin, the
proponents will be distributing the pamphlets and flyers. By
employing this tactic, the company is able to build its reputation and
raise public awareness of the company.

c. Publicity

Barbie’s Studio will be organizing a ribbon-cutting ceremony

before the business officially starts its operation as a form of
publicity. Surrounded by enthusiastic employees, esteemed
guests, and members of the local community, the event will
symbolize not just physical growth but also the culmination of
dedicated efforts and unwavering commitments. Recognizing the
psychological impact on stakeholders and the community. Barbie’s
Studio can optimize these ceremonies to build a positive brand
narrative, foster community support, and pave the way for
sustained success in the competitive business landscape.
 Designing and Usage of Memorandum of Agreement (MOA)

A formal agreement between parties outlining how they

would cooperate to accomplish the project's goals and objectives
is called a memorandum of agreement (MOA). It reduces the risks
to each party and outlines the responsibilities and duties of the
parties. A verbal agreement is less formal than a memorandum of
agreement, but it is still more formal than a contract. Its goal is for
the parties to have a formal written understanding agreement.
Barbie's Studio will furnish its supplier with a memorandum of
understanding. The company will look to form a partnership with
the supplier in order to purchase the raw materials needed to run
the business.
 MEMORANDUM OF AGREEMENT

Between BARBIE’S STUDIO and Supplier

This Memorandum of Agreement (MOA) is made and entered into

on this day (Effective date) by and between:

Barbie’s Studio, a sole proprietorship business, with a store

located at San Vicente Calapan City; and

Supplier, a person residing in Calapan City

I. Purpose and Scope

This section states the objective and purpose of the
collaboration between Barbie’s Studio and Supplier. Also,
this section sets forth the terms and conditions, scope of
work and responsibilities of the parties associated in the
project collaboration.

II. Responsibilities of Barbie’s Studio

This section provides a detailed description of the
responsibilities and obligations of Barbie’s Studio in the
collaboration.

III. Supplier’s Responsibilities.

This section provides a detailed description of the
responsibilities and obligations of the supplier in the
collaboration.

IV. Terms and Conditions

 This section covers the payment schedule between
Barbie’s Studio and the Supplier, the duration of the
agreement, and the modification of its termination. The
terms and conditions could increase depending on the
agreement of the parties.

V. Effective Date and Signature

This section includes the date and the signature of
both parties which indicates the beginning of the agreement
and its effectivity.

Sales Strategy

According to Kotler and Armstrong (2016), choices made

regarding target markets, value propositions, and resource
allocation are all components of a sales strategy. Going beyond
straightforward commercial engagements, it places a strong
emphasis on long-term value creation and client relationship
building. By aligning sales activities with overarching business
objectives, a well-structured strategy ensures a targeted and well-
coordinated approach, optimizing the impact of sales operations in
a competitive marketplace. Furthermore, for businesses to remain
adaptable and responsive, a solid sales strategy needs to be able
to change with the market and with changing consumer
preferences. For a company to be successful, it must not only have
a good marketing strategy but also an effective sales strategy.

A complete overview of the business plan for accessing and

promoting to the target market is referred to as a sales strategy.
Below are the strategies that Barbie’s Studio will be using to
increase its sales and revenue:

a. Promotional Discounts

A smart marketing strategy to increase brand awareness

and encourage new and existing customers to make purchases
from the company is to offer discounts or gift cards. These price
reductions act as strong encouragement, drawing in prospective
customers and inspiring them to buy. Businesses can effectively
attract and retain customers by offering perceived value and cost
savings, which can develop a favorable relationship that lasts
beyond the first transaction. In conclusion, in a competitive market,
promotional discounts are a win-win situation for both businesses
and consumers.

b. Loyalty Cards

Any person who purchases any of the packages that will be

offered can have the loyalty card. Wherein, for every purchase that
they will make, a stamp will be given on their loyalty card. Once the
customer reaches the maximum number of stamps, they can either
get a discount or a free package. In that way, it will help the
business attract and gain customers, as well as keep them coming
back.
 CHAPTER V

OPERATIONS

Operations Strategy pertains to the pattern of decisions that

shape the capabilities of a business to achieve its long-term goals
and contribute to the plans and the overall strategy. Ensuring that
proper processes and technology are in place will help support the
business in reaching its goals. In addition, identifying expected
quality products and services as well as improving customer
experience will be tackled in this chapter.

Scope of Operations
The Products and services provided by Barbie's Studio
focuses on the customers who desire to personalize the cake they
want to give to their special someone, and who want to experience
the quality service of decorating cakes that our business offers.
Barbie's Studio will have 6 ready – made cakes in their different
flavors and for the icings, customers will choose at least 3 of any
color and can use decorating materials and equipment letting their
creativity, giving their cake a touch of personalization. We believe
that any person who would avail themselves will be satisfied by the
products and services of Barbie's Studio such as personalizing,
experiencing and decorating their own cake.
Operation Schedule

Days of operation Person in-charge Hours of operations

Sunday None Day-off

1 Cashier
Monday 2 Kitchen staff 8:00 - 5:00 pm
1 Owner

1 Cashier
Tuesday 2 Kitchen staff 8:00 - 5:00 pm
1 Owner

1 Cashier
Wednesday 2 Kitchen staff 8:00 - 5:00 pm
1 Owner

1 Cashier
Thursday 2 Kitchen staff 8:00 - 5:00 pm
1 Owner

1 Cashier
Friday 2 Kitchen staff 8:00 - 5:00 pm
1 Owner

1 Cashier
Saturday 2 Kitchen staff 8:00 - 5:00 pm
1 Owner

This business will open and operate from Monday to

Saturday while Sunday will be the staff's day-off. When it comes to
daily operations, they can assist customers and clean the working
area, they can also help the cashier in explaining, and then they
can take pictures of customers to help the owner in terms of
marketing. 1 staff member will be responsible for serving the cakes
to customers as well as cleaning the place before and after the
customers use the area for personalizing their cake to become
more extra special. The Cashier will be responsible for taking
orders, answering questions on the package items and preparing
the bill. 2 Kitchen staff will be responsible for cake bread and icing
preparation while maintaining the cleanliness of the work stations
as well as the storage for foods. The owner will supervise all over
the business and will decide in terms of marketing concept and
posting.

Facility Layout

Ordering and service system

The ordering and service for Barbie's Studio, customers can

go straight to the counter and order. The amenities/services
package deal will be given and discussed by the staff. After they
have finalized their order, the customer will pay and be given their
order. Finally, the customer will go to the said area to personalize
their cake and make innovative designs.

Waste Management Disposal

Waste management is the collection, recycling or disposal

and monitoring of waste materials. Any business requires proper
waste disposal in accordance with established environmental
procedures. A well-managed system for waste collection,
transportation, treatment, and disposal, as well as monitoring and
regulation, must be in place. This is the strategy an organization or
business uses to dispose, reduce, reuse and prevent waste.

Inside Barbie's Studio, there will be two (2) garbage cans,

one non-biodegradable and one biodegradable. The leftover ready-
made cakes will be used as the base of the cake that will be
displayed and stored in the refrigerator in front of the shop. The
garbage will be properly stored after store hours at a closed waste
facility in the shop facility until it is collected. The garbage collector
will collect solid residual wastes at least three times per week which
will be sent to the City Sanitary Landfill Facility in Barangay Batino
– Solid Waste Management.
 Materials and Administrative

Direct Materials

CAKE
VANILLA AND CHOCOLATE
Price per Annual
Items Supplier Unit Annual Cost
Unit Consumption
Flour Public market ₱ 1,300 1 sack 24 ₱ 31,200

Baking powder Public market ₱ 42 1 box 30 ₱ 1,245

Baking soda Public market ₱ 29 1 box 30 ₱ 870

Butter Public market ₱ 58 1 box 208 ₱ 12,064

Egg Public market ₱ 108 1 dozen 11,232 ₱ 1,213,056

Sugar Public market ₱ 45 1 kilo 208 ₱ 9,360

Milk Public market ₱ 105 1 galloon 208 ₱ 21,840

Vanilla Extract Public market ₱ 43 1 bottle 624 ₱ 26,832

Cocoa Powder Public market ₱ 185 1 pack 416 ₱ 76,960

Total ₱ 1,393,427

ICING
RED, ORANGE, YELLOW, GREEN, BLUE, VIOLET, WHITE, and BLACK
Price per Annual Annual Cost
Items Supplier Unit
Unit Consumption
Whipped cream Public market ₱ 258 1 box 30 ₱ 7,740

Food Color - BVW Public market ₱ 71 1 bottle 108 ₱ 7,668

Food Color - Public market ₱ 71 1 bottle 96 ₱ 6,816

ROYG

Food Color - Public market ₱ 71 1 bottle 12 ₱ 852

Black

Total ₱ 23,076

TOPPINGS
MARSHMALLOWS, CHOCOLATE CHIPS & BARS, and CAKE TOPPERS
Price per Annual Annual Cost
Items Supplier Unit
Unit Consumption
Marshmallows Public market ₱ 109 1 pack 24 ₱ 2,616
Chocolate Chips Public market ₱ 120 1 pack 24 ₱ 2,880
Chocolate Bars Public market ₱ 125 1 pack 24 ₱ 3,000
Sprinkles Public market ₱ 62 1 pack 12 ₱ 744
Cake Toppers Public market ₱ 56 1 pack 12 ₱ 672
Total ₱ 9,912

TOTAL ₱ 1,426,415

Packaging Supplies

Price per Annual Annual Cost

Items Supplier Unit
Unit Consumption
Cake boxes Shopee ₱ 300 1 pack 75 ₱ 22,500
(50 pcs)
Ribbon Shopee ₱ 15 1 roll 8 ₱ 120
(50 yrds)
Candles Shopee ₱ 120 1 bundle 6 ₱ 720
(200 pcs)
TOTAL ₱ 23,340

Utilities Expense

Electricity Expense
Year 7% increase per year Monthly consumption Yearly billing
2025 ₱ 3,897 ₱ 46,762
2026 ₱ 273 ₱ 4,170 ₱ 50,036
2027 ₱ 292 ₱ 4,462 ₱ 53,538
2028 ₱ 312 ₱ 4,774 ₱ 57,286
2029 ₱ 334 ₱ 5,108 ₱ 61,296
 Water Expense
Year 7% increase per year Monthly consumption Yearly billing
2025 ₱ 1,100 ₱ 13,200
2026 ₱ 77 ₱ 1,177 ₱ 14,124
2027 ₱ 82 ₱ 1,259 ₱ 15,113
2028 ₱ 88 ₱ 1,348 ₱ 16,171
2029 ₱ 94 ₱ 1,442 ₱ 17,303

Advertising Expense

Items 2025 2026 2027 2028 2029

Tarpaulin ₱ 1,500 - - - -
Flyers and Cards ₱ 3,000 ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500
Grand Opening ₱ 20,000 - - - -
TOTAL ₱ 24,500 ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500

Machines and Equipment

Price per Annual

Items Supplier Unit Annual Cost
Unit Consumption
1
Aircon w/ VPR ₱ 28,000 1 item ₱ 28,000
Installation Marketing
1
Refrigerator VPR ₱ 23,150 1 item ₱ 23,150
Marketing
₱ 51,150
TOTAL
 Furniture and Fixture

Price per Annual

Items Supplier Unit Annual Cost
Unit Consumption
Square table Lazada ₱ 15,000 1 item 4 ₱ 60,000
Cabinet Lazada ₱ 2,500 1 item 3 ₱ 7,500
Sofa Lazada ₱ 7,000 1 item 1 ₱ 7,000
Industrial shelves Lazada ₱ 1,250 1 item 3 ₱ 3,750
TOTAL ₱ 78,250

Rent Expense

Year 2% increase per year Monthly rent Yearly Billing

2025 ₱ 8,000 ₱ 96,000

2026 ₱ 160 ₱ 8,160 ₱ 97,920

2027 ₱ 163 ₱ 8,323 ₱ 99,878

2028 ₱ 166 ₱ 8,490 ₱ 101,876

2029 ₱ 170 ₱ 8,659 ₱ 103,913

 Renovation

Items Supplier Price per Unit Annual Annual Cost

Unit Consumption
Paint (Pink) Prima Depot ₱ 55 5 1 ₱ 275
Paint Prima Depot ₱ 55 3 1 ₱ 165
(White)
Paint Roller Prima Depot ₱ 23 2 1 ₱ 46
Wall Design Unitop ₱ 450 3 1 ₱ 1,350
Glass Doors Calapan Glass & ₱ 4,999 1 1 ₱ 4,999
w/ Stainless Supply
Installation
Roll - up Calapan Glass & ₱ 3,599 1 1 ₱ 3,599
Stainless Supply
Padlock and Unitop ₱ 115 1 set 1 ₱ 115
Key
Linoleum Pick - up Shop ₱ 90 1 yard 7 ₱ 630
Floor Mat
Labor - ₱ 600 1 2 ₱ 1,200
person
TOTAL ₱ 12,379
 CHAPTER VI

MANAGEMENT

Management is considered to be one of the important

aspects in establishing a business. This chapter will include the
study of officers and their key personnel, the form of ownership, the
organizational chart, and the requirements that are needed. The
policies and procedures are also included in this chapter together
with their supposed plan for the salaries and benefits as well as the
timeline for the development. These are all set up for the attainment
of the goals and objectives of the business.

Form of Business Ownership

The owners of Barbie's Studio have settled to have a sole

proprietorship for relatively small activities that can be done alone
or with the help of other entrepreneurs/employees. As a sole
business owner, Barbie's Studio has a monopoly on all decisions
made, whether financial or operational including their time, which
will be self-sufficient and satisfying. While, it also imposes
enormous responsibilities on them to manage.

1. This business will be easy to establish and fewer requirements

in terms of business taxes.

2. Sole proprietorships come with fewer business fees.

3. Complete ownership of this business.

Organizational Chart

The organizational chart presented the business which

consists of 4 persons that is being headed by 1 owner who is
directed and assisted by the staff personnel under her division,
supported by 3 hiring employees in different duties which are front
staff, cashier and kitchen staff. They will be given an introduction
about the business including its vision and mission and the policies
that must be followed. Moreover, the hired employees will also be
informed about the compensation they will be receiving and, most
importantly, they will be taught about the job they will be doing upon
hiring.

Management Team

Management teams play an important role in every

business, as they provide oversight, control, and direction for
organizations. It is responsible for making strategic decisions and
overseeing the business operations, ensuring its growth and
success. This section focuses on the roles and responsibilities of
the people involved in the organizational structure of Barbie's
Studio.

❖ Owner - will be in charge of the company's overall and day-to-

day operations, ensuring the growth of the business through the
formulation and implementation of strategic plans. She will be in
charge of directing and controlling all business services, including
personnel supervision and motivation, training employees,
entertaining inquiries from either staff or customers, and online
marketing concepts. Creating policies, communicating with
suppliers and clients, and making strategic decisions will also be
her responsibilities.

❖ Cashier - will also be responsible for taking orders, answering

questions on the package items and will also be overseeing
customers' orders and taking their payments.

❖ Kitchen Staff – will be in charge of controlling and managing the

kitchen area, whereas she will be in charge of preparing different
cake flavors and for the icings color and toppings as well as the
customers' taste preferences. They will also be in charge of product
production.

As seen in the management team, the team decided to not

hire another person to oversee the maintenance/dishwasher
duties. Instead, it will be occupied by the kitchen staff since the
business is a sole proprietorship, the owner who will be in charge
of overall business stuff, including entertaining customers'
complaints. Hence, the owner will be working as a normal
employee also.
Manpower Requirements

❖ Business Owner

• Higher educational attainment

• Great interpersonal and communication skills
• Has a good knowledge of different business functions

o (i.e., finance, operations, and marketing)

• Multitasker and critical thinker with strong analytical skills

• Possesses great leadership abilities among employees
• Has a positive working relationship with workers
• With good social skills

❖ Cashier

The cashier will present the cakes, icings and toppings as well
as the package deals. He/she is also responsible for serving the
cakes to customers as well as cleaning the place before and after
the customers use the area for personalizing their cake will also be
handled by her/him and also will be responsible for taking orders,
answering questions on the package items and preparing the
payments.

• Must possess at least High school Graduate or College

undergrad (with or without experience)
• Basic math skills
• Able to learn computerized ordering system
• With friendly demeanor and a positive attitude
 • Excellent time management and communication skills
• Trustworthy and reliable
• Can work under minor supervision
• Commitment to excellent customer service
• Able to handle working in a fast-paced environment

❖ Kitchen staff

The Kitchen staff will be baking cakes and assembling all icings
and toppings that are needed. He/she must make sure that the
ready – made cakes are of great quality, clean and pleasing to the
eye.

• Bachelor’s degree is not mandatory

• Preferably with experience in the baking industry
• Several years of experience is an advantage
• Must be 18 years old and above
• Basic knowledge in cake preparation and design
presentation

Organizational Policies and Procedures

❖ WORKING HOURS POLICY WORK SCHEDULE AND REST

PERIOD POLICY
Barbie's Studio will be open from Monday-Saturday and
Sunday as day-off. The Shop will operate from 8 AM - 5 PM
during workdays. Employees will be given even fifteen –minutes
short breaks in the morning and afternoon, allowing them to rest
 or visit the comfort room and/or if ever there's no customers yet
they will clean and manage other tasks that are unfinished.

❖ DRESS CODE POLICY

The employees are expected to be well-groomed and wear
clean clothing, free of holes, tears, or other signs of wear.
Clothing should not be too revealing. Food Service staff must
wear sturdy, closed-toe, low-heeled shoes which minimize slips,
falls, burns, and cuts. They must also wear hairnet/hair
protection gear for hygiene purposes and a clean apron each
day while involved in food preparation.

❖ ATTENDANCE POLICY
As per the attendance policy, all employees are expected to
report to work on time and maintain a satisfactory record of
attendance. Employees are required to attend work based on
their work schedule, opening to closing hours. Employees are
needed to address to manager if:

Absent 1 day before the scheduled work

2 hours before the scheduled work
Late

Absent in three consecutive days will be considered resigning

❖ VACATION POLICY
Vacation may be taken by eligible employees with prior
manager approval, at times that best meet the requirements of
this business. Every employee is entitled to have a 6-day
vacation off for a year. Vacation time-off day depends on the
employee request. Generally, requests for vacation days must
be submitted to the owner at least one week in advance. The
Owner will assess the request based on the manpower needs,
other business factors and performance of the employee.

❖ TERMINATION
Both the employee and the company have the right to
terminate employment at any time, with or without cause.
Employees will be paid in accordance with applicable state law.
The following are the list of the behavior that may result in
disciplinary action up to terminating an employee.

✓ Drinking alcohol or use of illegal drugs during work times

✓ Theft or action of crime stealing
✓ Fighting or threatening violence in the workplace
✓ Sexual or other unlawful harassment
✓ Excessive absenteeism or any absence without notice
✓ Unauthorized disclosure of business "secrets" or
confidential information
✓ Misuse of business funds/money/equipment/property
 ❖ NON-DISCLOSURE AGREEMENT
Employees and the employer will sign a contract agreeing to
disclose information for a specific purpose. Employees have an
implied duty not to use trade secrets in a way that will harm the
business. This is done to ensure that the information sought to
be protected is not interpreted as being in the public domain.
Signing a non-disclosure agreement (NDA) allows you to share
ideas with business partners while preventing them from
disclosing any information.

Salaries and Wages

SALARIES
Employees Daily Wage Basic Salary Annual Salary
Rate
Cashier ₱ 369 ₱ 9,594 ₱ 115,128
Kitchen Staff #1 ₱ 369 ₱ 9,594 ₱ 115,128
Kitchen Staff #2 ₱ 369 ₱ 9,594 ₱ 115,128
Owner ₱ 400 ₱ 10,400 ₱ 124,800
TOTAL ₱ 1,507 ₱ 39,182 ₱ 470,184

NET SALARY OF EMPLOYEES

Employees Basic Salary SSS PHILHEALTH PAG - IBIG Net Earnings
Cashier ₱ 9,594 ₱ 432 ₱ 432 ₱ 192 ₱ 8,539
Kitchen Staff ₱ 9,594 ₱ 432 ₱ 432 ₱ 192 ₱ 8,539
#1
Kitchen Staff ₱ 9,594 ₱ 432 ₱ 432 ₱ 192 ₱ 8,539
#2
Owner ₱ 10,400 ₱ 468 ₱ 468 ₱ 208 ₱ 9,256
TOTAL ₱ 39,182 ₱ 1,763 ₱ 1,763 ₱ 784 ₱ 34,872
 Employer Contribution to Employees

Employer Contribution to Cashier

Contribution Monthly 2025 2026 2027 2028 2029

SSS ₱ 911 ₱ 10,937 ₱ 10,937 ₱ 10,937 ₱ 10,937 ₱ 10,937
PHILHEALTH ₱ 432 ₱ 5,181 ₱ 5,181 ₱ 5,181 ₱ 5,181 ₱ 5,181
PAG IBIG ₱ 192 ₱ 2,303 ₱ 2,303 ₱ 2,303 ₱ 2,303 ₱ 2,303
13th Month Pay ₱ 9,594 ₱ 9,594 ₱ 9,594 ₱ 9,594 ₱ 9,594
TOTAL ₱ 1,535 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014
Employer Contribution to Kitchen Staff

Contribution Monthly 2025 2026 2027 2028 2029

SSS ₱ 911 ₱ 10,937 ₱ 10,937 ₱ 10,937 ₱ 10,937 ₱ 10,937
PHILHEALTH ₱ 432 ₱ 5,181 ₱ 5,181 ₱ 5,181 ₱ 5,181 ₱ 5,181
PAG IBIG ₱ 192 ₱ 2,303 ₱ 2,303 ₱ 2,303 ₱ 2,303 ₱ 2,303
13th Month Pay ₱ 9,594 ₱ 9,594 ₱ 9,594 ₱ 9,594 ₱ 9,594
TOTAL ₱ 1,535 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014
Employer Contribution to Kitchen Staff

Contribution Monthly 2025 2026 2027 2028 2029

SSS ₱ 911 ₱ 10,937 ₱ 10,937 ₱ 10,937 ₱ 10,937 ₱ 10,937
PHILHEALTH ₱ 432 ₱ 5,181 ₱ 5,181 ₱ 5,181 ₱ 5,181 ₱ 5,181
PAG IBIG ₱ 192 ₱ 2,303 ₱ 2,303 ₱ 2,303 ₱ 2,303 ₱ 2,303
13th Month Pay ₱ 9,594 ₱ 9,594 ₱ 9,594 ₱ 9,594 ₱ 9,594
TOTAL ₱ 1,535 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014
Employer Contribution to Owner

Contribution Monthly 2025 2026 2027 2028 2029

SSS ₱ 988 ₱ 11,856 ₱ 11,856 ₱ 11,856 ₱ 11,856 ₱ 11,856
PHILHEALTH ₱ 468 ₱ 5,616 ₱ 5,616 ₱ 5,616 ₱ 5,616 ₱ 5,616
PAG IBIG ₱ 208 ₱ 2,496 ₱ 2,496 ₱ 2,496 ₱ 2,496 ₱ 2,496
13th Month Pay ₱ 10,400 ₱ 10,400 ₱1 0,400 ₱ 10,400 ₱ 10,400
TOTAL ₱ 1,664 ₱ 30,368 ₱ 30,368 ₱ 30,368 ₱ 30,368 ₱ 30,368
Development Timeline

❖ JANUARY 2025
✓ Considering new facilities, carefully analyzing the labor
force, transportation, communication, customer markets and
other infrastructure issues that will affect the success of
Barbie's Studio.
✓ Grand opening of Barbie's Studio extended shop
✓ Launching marketing campaign
✓ Advertising our products and services as well as giving out
flyers and social marketing.
✓ Giving promos and discount to customers
✓ Creating financial events for the next years

❖ JANUARY 2027
✓ Opening Business bank account.
✓ Focusing more on increasing sales and start spending more
time and energy reducing cost.
✓ Improving the productivity of Barbie's Studio.
✓ Creating seasonal promos and seasonal theme for the shop.
✓ Upgrading inventory spaces that the employees needed.
✓ Improving the design and packaging products for sale.

❖ JANUARY 2029
✓ Securing the Barbie's Studio, retail or manufacturing space.
✓ Legal procedures such as incorporating Barbie's Studio or
creating a partnership or investment.
✓ Upgrading equipment and the services offered. Turning to
technology as a productivity booster.
 CHAPTER VIII
SUMMARY OF FINANCIALS
This chapter reveals the financial health of Barbie
Cakes’ expansion idea, Barbie’s Studio, during its first year of
operations until its fifth year of operations. This chapter includes the
financial statements of Barbie’s Studio such as its statement of
financial position, income statement, statement of changes in
partner’s equity, ad statement of cash flow.

Statement of Assumption
In the preparation of financial statements, the proponents
have made the following assumptions:
1. The business will be classified as a sole
proprietorship with an initial investment of
₱1,771,996.20.

2. The financial calendar of the business will

presumably begin on January 1, 2025.

3. Demand is projected is projected to increase by

1.56% yearly based on the data provided by the
Philippine Statistics Association (2020).

4. Supply will remain for the next five years due to the
changing prices of ingredients needed to create the
cake and icing.
5. The price of the product per package is expected to
increase by 1% yearly, which will cause the selling
price to increase by ₱5.00 per package deal annually.

6. The rent is expected to increase annually by 2%.

7. For utility expenses, electricity and water are

expected to increase by 7% annually.

8. The machines and equipment and furniture and

fixtures will depreciate over its estimated useful life.

9. The advertising expense will be heavy during the first

year of operations, which will be adjusted in the
following years depending on the consumption of the
business.

10. The salaries and SSS, PHILHEALTH and PAG – IBIG

contributions will remain the same.

11. Since the business is classified as a sole

proprietorship, the business will be subjected to an
8% income tax.

12. For uniformity, decimal places are removed and

turned into whole numbers.
Depreciations
Machines and Equipment – Depreciation
Item Cost Estimated Depreciation
Useful Life per Year
Refrigerator ₱ 23,150.00 25 ₱ 926.00
Aircon ₱ 28,000.00 25 ₱ 1,120.00
Total ₱ 2,046.00

Furniture and Fixtures – Depreciation

Item Cost Estimated Depreciation
Useful Life per Year
Square table w/ chair ₱ 60,000.00 10 ₱ 6,000.00
Cabinet ₱ 7,500.00 5 ₱ 1,500.00
Sofa ₱ 7,000.00 5 ₱ 1,400.00
Industrial shelves ₱ 3,750.00 10 ₱ 375.00
Total ₱ 9,275.00
 Statement of Financial Position
Table Statement of Financial Position
BARBIE’S STUDIO
Statement of Financial Position
For the year 2025 to 2029

2025 2026 2027 2028 2029

ASSETS
Current Assets
Cash and Cash Equivalents ₱ 2,444,657 ₱ 3,219,061 ₱ 4,002,888 ₱ 4,797,650 ₱ 5,602,999
Total Current Assets ₱ 2,444,657 ₱ 3,219,061 ₱ 4,002,888 ₱ 4,797,650 ₱ 5,602,999

Non - Current Assets

Machine and Equipment ₱ 51,150 ₱ 49,104 ₱ 47,058 ₱ 45,012 ₱ 42,966
Accumulated Depreciation – ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046
Machine and Equipment
Book Value ₱ 49,104 ₱ 47,058 ₱ 45,012 ₱ 42,966 ₱ 40,920

Furniture and Fixture ₱ 78,250 ₱ 68,975 ₱ 59,700 ₱ 50,425 ₱ 41,150

Accumulated Depreciation – ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275
Furniture and Fixtures
Book Value ₱ 68,975 ₱ 59,700 ₱ 50,425 ₱ 41,150 ₱ 31,875

Total Non - Current Assets ₱ 118,079 ₱ 106,758 ₱ 95,437 ₱ 84,116 ₱ 72,795

TOTAL ASSETS ₱ 2,562,736 ₱ 3,325,819 ₱ 4,098,325 ₱ 4,881,766 ₱ 5,675,794

LIABILITIES
Income Tax Payable ₱ 63,259 ₱ 66,107 ₱ 67,089 ₱ 68,042 ₱ 68,966

TOTAL LIABILITIES ₱ 63,259 ₱ 66,107 ₱ 67,089 ₱ 68,042 ₱ 68,966

EQUITIES
Owner's Capital ₱ 2,499,477 ₱ 3,259,712 ₱ 4,031,236 ₱ 4,813,723 ₱ 5,606,828

TOTAL EQUITIES ₱ 2,499,477 ₱ 3,259,712 ₱ 4,031,236 ₱ 4,813,723 ₱ 5,606,828

TOTAL LIABILITIES AND ₱ 2,562,736 ₱ 3,325,819 ₱ 4,098,325 ₱ 4,881,766 ₱ 5,675,794

EQUITIES
 Income Statement
Table Income Statement
BARBIE’S STUDIO
Income Statement
For the year 2025 to 2029

2025 2026 2027 2028 2029

Gross Sales ₱ 1,684,800 ₱ 1,703,520 ₱ 1,722,240 ₱ 1,740,960 ₱ 1,759,680

Less: Cost of Goods Sold

Direct Materials ₱ 507,499 ₱ 507,499 ₱ 507,499 ₱ 507,499 ₱ 507,499
Packaging Cost ₱ 41,184 ₱ 41,184 ₱ 41,184 ₱ 41,184 ₱ 41,184
Labor Cost ₱ 39,182 ₱ 39,182 ₱ 39,182 ₱ 39,182 ₱ 39,182
Overhead Cost ₱ 155,962 ₱ 162,080 ₱ 168,529 ₱ 175,332 ₱ 182,512
Total Cost of Goods Sold ₱ 743,828 ₱ 749,945 ₱ 756,395 ₱ 763,198 ₱ 770,377

Gross Profit ₱ 940,972 ₱ 953,575 ₱ 965,845 ₱ 977,762 ₱ 989,303

Less: Operating Expense

SSS, PHILHEALTH, and ₱ 75,229 ₱ 75,229 ₱ 75,229 ₱ 75,229 ₱ 75,229
PAG - IBIG Contribution
13th Month Pay ₱ 39,182 ₱ 39,182 ₱ 39,182 ₱ 39,182 ₱ 39,182
Depreciation Expense -
Building
Depreciation Expense - ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046
Machine and Equipment
Depreciation Expense - ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275
Furniture and Fixture
Advertising Expense ₱ 24,500 ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500
Total Operating Expenses ₱ 150,232 ₱ 127,232 ₱ 127,232 ₱ 127,232 ₱ 127,232

Net Income Before Tax ₱ 790,740 ₱ 826,343 ₱ 838,613 ₱ 850,530 ₱ 862,070

Tax Due (8%) ₱ 63,259 ₱ 66,107 ₱ 67,089 ₱ 68,042 ₱ 68,966
Net Income After Tax ₱ 727,481 ₱ 760,235 ₱ 771,524 ₱ 782,487 ₱ 793,105
 Statement of Changes in Owner’s Equity
Table Statement of Changes in Owner’s Equity
BARBIE’S STUDIO
Statement of Changes in Owner’s Equity
For the year 2025
Atienza, Capital - Beginning ₱ 1,771,996
Net Income ₱ 727,481

Atienza, Capital - Ending ₱ 2,499,477

BARBIE’S STUDIO
Statement of Changes in Owner’s Equity
For the year 2026
Atienza, Capital - Beginning ₱ 2,499,477
Net Income ₱ 760,235

Atienza, Capital - Ending ₱ 3,259,712

BARBIE’S STUDIO
Statement of Changes in Owner’s Equity
For the year 2027
Atienza, Capital - Beginning ₱ 3,259,712
Net Income ₱ 771,524

Atienza, Capital - Ending ₱ 4,031,236

BARBIE’S STUDIO
Statement of Changes in Owner’s Equity
For the year 2028
Atienza, Capital - Beginning ₱ 4,031,236
Net Income ₱ 782,487

Atienza, Capital - Ending ₱ 4,813,723

 BARBIE’S STUDIO
Statement of Changes in Owner’s Equity
For the year 2029
Atienza, Capital - Beginning ₱ 4,813,723
Net Income ₱ 793,105

Atienza, Capital - Ending ₱ 5,606,828

 Statement of Cash Flow
Table Statement of Cash Flow
BARBIE’S STUDIO
Income Statement
For the year 2025 to 2029

2025 2026 2027 2028 2029

CASH FLOW FROM
OPERATING ACTIVITIES
Net Income ₱ 727,481 ₱ 760,235 ₱ 771,524 ₱ 782,487 ₱ 793,105
Add: Depreciation Expense ₱ 11,321 ₱ 11,321 ₱ 11,321 ₱ 11,321 ₱ 11,321
Add: Income Tax Payable ₱ 64,733 ₱ 67,581 ₱ 68,563 ₱ 69,516 ₱ 71,913
Net Cash Flow from ₱ 802,061 ₱ 837,664 ₱ 849,934 ₱ 861,851 ₱ 873,391
Operating Activities

CASH FLOW FROM

INVESTING ACTIVITIES
Machine and Equipment ₱ 51,150
Furniture and Fixture ₱ 78,250
Net Cash Flow from ₱ 129,400
Investing Activities

CASH FLOW FROM

FINANCING ACTIVITIES
Investment from Owners ₱ 1,771,996
Net Cash Flow from ₱ 1,771,996
Financing Activities

Payment of Tax ₱ 63,259 ₱ 66,107 ₱ 67,089 ₱ 68,042

Net Cash ₱ 2,444,657 ₱ 774,404 ₱ 738,827 ₱ 794,762 ₱ 840,716

Beginning Cash Balance - ₱ 2,444,657 ₱ 3,219,061 ₱ 4,002,888 ₱ 4,797,650
Ending Cash Balance ₱ 2,444,657 ₱ 3,219,061 ₱ 4,002,888 ₱ 4,797,650 ₱ 5,602,999
 Note 1. Cash and Cash Equivalent
2025 2026 2027 2028 2029
Cash on Hand ₱ 1,000,000 ₱ 1,500,000 ₱ 2,000,000 ₱ 1,500,000 ₱ 1,500,000
Cash in Bank ₱ 1,453,078 ₱ 1,744,429 ₱ 2,045,202 ₱ 3,356,911 ₱ 4,197,627
Petty Cash ₱ 10,000 ₱ 10,000 ₱ 10,000 ₱ 10,000 ₱ 10,000
Total ₱ 2,463,078 ₱ 3,254,429 ₱ 4,055,202 ₱ 4,866,911 ₱ 5,707,627

Note 2. Projected Income

2025 2026 2027 2028 2029
Projected Supply 3,744 3,744 3,744 3,744 3,744
Price per Package ₱ 450 ₱ 455 ₱ 460 ₱ 465 ₱ 470
Annual Income ₱ 1,684,800 ₱ 1,703,520 ₱ 1,722,240 ₱ 1,740,960 ₱ 1,759,680

Note 3. Projected Cost of Goods Sold

2025 2026 2027 2028 2029
Direct Materials ₱ 507,499 ₱ 507,499 ₱ 507,499 ₱ 507,499 ₱ 507,499
Labor Cost ₱ 39,182 ₱ 39,182 ₱ 39,182 ₱ 39,182 ₱ 39,182
Overhead Cost ₱ 155,962 ₱ 162,080 ₱ 168,529 ₱ 175,332 ₱ 182,512
Packaging Cost ₱ 41,184 ₱ 41,184 ₱ 41,184 ₱ 41,184 ₱ 41,184
Total ₱ 743,828 ₱ 749,945 ₱ 756,395 ₱ 763,198 ₱ 770,377

Note 3.A. Direct Materials

Direct Materials Cost Daily/Weekly Monthly Yearly
Cake ₱ 1,368 26 ₱ 35,556 ₱ 426,667
Icing ₱ 1,593 4 ₱ 6,372 ₱ 76,464
Toppings ₱ 14 26 ₱ 364 ₱ 4,368
Total ₱ 507,499
 Note 3.B. Labor Cost
Employees Daily Wage Rate Basic Salary Annual Salary
Cashier ₱ 369 ₱ 9,594 ₱ 115,128
Kitchen Staff #1 ₱ 369 ₱ 9,594 ₱ 115,128
Kitchen Staff #2 ₱ 369 ₱ 9,594 ₱ 115,128
Owner ₱ 400 ₱ 10,400 ₱ 124,800
Total ₱ 1,507 ₱ 39,182 ₱ 470,184

Note 3.C. Overhead Cost

2025 2026 2027 2028 2029
Electricity ₱ 46,762 ₱ 50,036 ₱ 53,538 ₱ 57,286 ₱ 61,296
Water ₱ 13,200 ₱ 14,124 ₱ 15,113 ₱ 16,171 ₱ 17,303
Rent ₱ 96,000 ₱ 97,920 ₱ 99,878 ₱ 101,876 ₱ 103,913
Total ₱ 155,962 ₱ 162,080 ₱ 168,529 ₱ 175,332 ₱ 182,512

Note 3.D. Packaging Cost

Yearly
Cake Boxes ₱ 22,464
Ribbon ₱ 11,232
Candles ₱ 7,488
Total ₱ 41,184

Note 4. Salaries
Employees 2025 2026 2027 2028 2029
Cashier ₱ 115,128 ₱ 115,128 ₱ 115,128 ₱ 115,128 ₱ 115,128
Kitchen Staff #1 ₱ 115,128 ₱ 115,128 ₱ 115,128 ₱ 115,128 ₱ 115,128
Kitchen Staff #2 ₱ 115,128 ₱ 115,128 ₱ 115,128 ₱ 115,128 ₱ 115,128
Owner ₱ 124,800 ₱ 124,800 ₱ 124,800 ₱ 124,800 ₱ 124,800
Total ₱ 470,184 ₱ 470,184 ₱ 470,184 ₱ 470,184 ₱ 470,184
 Note 5. Rent
2025 2026 2027 2028 2029
Rent (2% increase per year) ₱ 96,000 ₱ 97,920 ₱ 99,878 ₱ 101,876 ₱ 103,913
Total ₱ 96,000 ₱ 97,920 ₱ 99,878 ₱ 101,876 ₱ 103,913

Note 6. Utilities Expense

2025 2026 2027 2028 2029
Electricity Expense (7% increase ₱ 46,762 ₱ 50,036 ₱ 53,538 ₱ 57,286 ₱ 61,296
per year)
Water Expense (7% increase per ₱ 13,200 ₱ 14,124 ₱ 15,113 ₱ 16,171 ₱ 17,303
year)
Total ₱ 59,962 ₱ 64,160 ₱ 68,651 ₱ 73,456 ₱ 78,598

Note 7. Advertising Expense

2025 2026 2027 2028 2029
Tarpaulin ₱ 1,500 - - - -
Flyers and Cards ₱ 3,000 ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500
Grand Opening ₱ 20,000 - - - -
Total ₱ 24,500 ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500

Note 8. Property, Plant and Equipment

2025 2026 2027 2028 2029
MACHINES AND EQUIPMENT
Appliances
Refrigerator ₱ 926 ₱ 926 ₱ 926 ₱ 926 ₱ 926
Aircon ₱ 1,120 ₱ 1,120 ₱ 1,120 ₱ 1,120 ₱ 1,120
Total ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046

FURNITURE AND FIXTURES

Square table w/ chair ₱ 6,000 ₱ 6,000 ₱ 6,000 ₱ 6,000 ₱ 6,000
Cabinet ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500 ₱ 1,500
Sofa ₱ 1,400 ₱ 1,400 ₱ 1,400 ₱ 1,400 ₱ 1,400
Industrial shelves ₱ 375 ₱ 375 ₱ 375 ₱ 375 ₱ 375
Total ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275

Total ₱ 11,321 ₱ 11,321 ₱ 11,321 ₱ 11,321 ₱ 11,321

Note 8.A. Machines and Equipment – Depreciation

2025 2026 2027 2028 2029
Book Value ₱ 51,150 ₱ 49,104 ₱ 47,058 ₱ 45,012 ₱ 42,966
Depreciation ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046 ₱ 2,046
Carrying Amount ₱ 49,104 ₱ 47,058 ₱ 45,012 ₱ 42,966 ₱ 40,920

Note 8.B. Furniture and Fixtures – Depreciation

2025 2026 2027 2028 2029
Book Value ₱ 78,250 ₱ 68,975 ₱ 59,700 ₱ 50,425 ₱ 41,150
Depreciation ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275 ₱ 9,275
Carrying Amount ₱ 68,975 ₱ 59,700 ₱ 50,425 ₱ 41,150 ₱ 31,875

Note 9. Benefits
2025 2026 2027 2028 2029
Cashier ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014
Kitchen Staff #1 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014
Kitchen Staff #2 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014 ₱ 28,014
Owner ₱ 30,368 ₱ 30,368 ₱ 30,368 ₱ 30,368 ₱ 30,368
Total ₱ 114,411 ₱ 114,411 ₱ 114,411 ₱ 114,411 ₱ 114,411
 Financial Ratios
Return on Assets
2025 2026 2027 2028 2029
Net Income ₱ 727,481 ₱ 760,235 ₱ 771,524 ₱ 782,487 ₱ 793,105
Total Assets ₱ 2,562,736 ₱ 3,325,819 ₱ 4,098,325 ₱ 4,881,766 ₱ 5,675,794
Percentage 28% 23% 19% 16% 14%

The return on assets of Barbie’s Studio is expected to reach

28% during its first year of operations and is bound to attain 23% in
the following year, which indicates that the assets owned by the
business are not efficiently utilized to increase sales. Moreover, it
is noticeable that the percentage continues to drop in the next
following years.

Return on Equity
2025 2026 2027 2028 2029
Net Income ₱ 727,481 ₱ 760,235 ₱ 771,524 ₱ 782,487 ₱ 793,105
Total Equities ₱ 2,499,477 ₱ 3,259,712 ₱ 4,031,236 ₱ 4,813,723 ₱ 5,606,828
Percentage 29% 23% 19% 16% 14%

The return on equity of Barbie’s Studio is predicted to reach

29% during its first year of operations and will continue to gradually
decrease in the following years. Hence, displaying the inefficiency
of the business in generating profits. This decline may be due to
the inefficient utilization of assets, negatively affecting equity.
 Return on Investment
2025 2026 2027 2028 2029
Net Income ₱ 727,481 ₱ 760,235 ₱ 771,524 ₱ 782,487 ₱ 793,105
Cost of Investment ₱ 1,771,996 ₱ 1,771,996 ₱ 1,771,996 ₱ 1,771,996 ₱ 1,771,996
Percentage 41% 43% 44% 44% 45%

The return on investment of Barbie’s Studio is anticipated to

reach 41% during its first year of operations. It will then continue to
rise in the following years until it reaches 44% in its third year of
operations. Thus, indicating the success of the business in
producing moderate returns using its investment.

Gross Profit Margin

2025 2026 2027 2028 2029
Gross Profit ₱ 940,972 ₱ 953,575 ₱ 965,845 ₱ 977,762 ₱ 989,303
Net Sales ₱ 1,684,800 ₱ 1,703,520 ₱ 1,722,240 ₱ 1,740,960 ₱ 1,759,680
Percentage 56% 56% 56% 56% 56%

In its first year of operations, Barbie’s Studio is forecasted to

attain a 56% gross profit margin that will remain the same in the
following years. This is due to the increase in sales and, at the same
time, the increase in the cost of goods sold by the business which
leads to the gross profit margin maintaining the same percentage.

Operating Profit Margin

2025 2026 2027 2028 2029
Operating Income ₱790,740 ₱826,343 ₱838,613 ₱850,530 ₱862,070
Net Sales ₱1,684,800 ₱1,703,520 ₱1,722,240 ₱1,740,960 ₱1,759,680
Percentage 47% 49% 49% 49% 49%
 In its first year of operations, Barbie’s Studio is forecasted to
achieve a 47% operating profit margin, which will gradually grow in
the following year, reaching to 49%. This percentage will then
remain until its fifth year of operations displaying the profitability of
the business after subtracting its cost of goods sold (e.g., direct
materials, packaging cost, labor cost and overhead cost) and
administrative expenses, excluding the tax expense.

Net Profit Margin

2025 2026 2027 2028 2029
Net Income ₱ 727,481 ₱ 760,235 ₱ 771,524 ₱ 782,487 ₱ 793,105
Net Sales ₱ 1,684,800 ₱ 1,703,520 ₱ 1,722,240 ₱ 1,740,960 ₱ 1,759,680
Percentage 43% 45% 45% 45% 45%

In its first year of operations, Barbie’s Studio is forecasted to

obtain a 43% net profit margin, moderately rising in the following
year attaining a 45%. This percentage will then remain until its fifth
year of operations displaying the profitability of the business after
covering all the costs of the business including its tax.

Capital Requirements
The owner of Barbie Cakes will be needing a total amount
of ₱1,771,996 to cover all the expenses of operating its expansion
idea, Barbie’s Studio. The capital of the owner will be derived from
taking a personal loan as well as the sales from the disposal of her
properties.
Owner Capital
Ms. Barbie Atienza ₱ 1,771,996
 Financial Risks
Risks are considered as threats to the success of a
business. Hence, every management is on the lookout for
identifying possible risks that may be encountered by the business
once it begins its operations. By determining risks, businesses are
able to develop plans to prevent or minimize its harmful effect even
before it occurs. Since it is inevitable to face those risks, it is crucial
for companies to be prepared in unforeseen circumstances that
may make – or break its business. Therefore, Barbie’s Studio will
be looking closely at possible risks that may arise in the coming
years of its operations to ensure a steady growth and stability.
The financial ratios of Barbie’s Studio for the next five years
have been analyzed. Unfortunately, it has been observed that there
will be a decline in the ROA (return on assets) and ROE (return on
equity) of the business in the following years. To prevent the decline
of ROA, the owner will need to be more efficient in using the assets
of the business to increase the sales, which can be through the
addition of package deals supplied annually. Moreover, some of
the expenses that will be unnecessary in the operations of the
business will also be minimized accordingly. In return, the ROE of
the business will be positively affected as the decline was caused
by a low ROA. Hence, improving asset turnover will lead to a better
return on equity. Aside from financial risks, the owner will need to
take into account the risks in the operations of the business
especially in terms of the fluctuating prices of the ingredients and
even utilities. Thus, it will be a crucial step for the owner to be
updated of the news regarding the prices in the market to minimize
its impact on the business.
Exit Strategies
An exit strategy is a contingency plan executed by an
investor, venture capitalist, or business owner to liquidate a position
in a financial asset or dispose of tangible business assets once
predetermined criteria have been met or exceeded (Hayes, 2023
and Indeed Editorial Team, 2023). Developing an exit strategy is
important for the owners to accomplish as one’s success can
immediately fall into ruin in a blink of an eye. Without an exit plan,
businesses are at risk of financial loss should the company fail.
Hence, Barbie’s Studio will formulate strategies in preparation for
exiting their position at a certain point.
The first exit plan of Barbie’s Studio will be selling the
business outright to a third party. Selling the business is considered
the most common exit option for owners as they can receive an
adequate amount selling the business to outside parties operating
in the same field such as the competitors. The second exit plan of
the business will be liquidation. Liquidation is the direct conversion
of assets to cash by selling them to consumers. Barbie’s Studio will
be selling the assets (e.g., machines and equipment and furniture
and fixtures) to similar types of businesses or equipment dealers,
and even consumers who are seeking what the business are
selling. Despite its low returns, liquidation is still considered the
most feasible method of exiting the business.

Socio – Economic Aspects

Socio – economic aspect pertains to the social implications
of the business to the society, as well as its economic and
environmental implications. Barbie’s Studio will be identifying its
possible beneficiaries.
 A. Sentimental People
The primary beneficiary of the expansion idea are
those sentimental people. Individuals who desire to give
other people a gift that contains sentimental value can
visit Barbie’s Studio. In the studio, customers can
produce something meaningful using their own hands by
personalizing the cake of their choice.

B. People who have Limited Free Time

People with limited free time are also beneficiaries
of Barbie’s Studio. Due to the fast – moving society,
people barely have enough time to do anything without
being each second passing. With Barbie’s Studio, these
people will not experience the hassle of baking and going
through its process. Customers can directly personalize
or decorate the cake for the person they want to gift it to.

SWOT Analysis
STRENGTHS WEAKNESSES
• No hassle of baking • High production cost
• Less time – consuming • It is seasonal
• First cake business that offers a cake
personalization

OPPORTUNITIES THREATS
• Product Expansion • Existing cake businesses in Calapan City
• Increase in electricity
• Increase in the price of ingredients
 SWOT analysis is a strategic planning technique that
provides assessment tools used in identifying the strengths,
weaknesses, opportunities, and threats of the business (Kenton,
2023). Barbie’s Studio will be using this framework to determine its
internal and external factors that might affect the business. In this
way, the owner can evaluate what aspect of the business can be
improved. At the same time, the owner can be prepared of the
possible challenges that the business may encounter in both shirt
and long – term.
The strengths and weaknesses cover the positive and
negative aspect inside the company. Upon evaluation, it is
discovered that the strength of Barbie’s Studio lies in the nature of
the product and service it offers. Since the concept is all about
personalizing a cake, customers will not have to be burdened with
the process of baking which makes it less time consuming than
traditional baking studios where cakes are made from scratch.
Moreover, Barbie’s Studio will become the first business to
introduce this innovative concept in the City of Calapan. Hence, the
business will be able to attain a first – mover advantage, yielding a
high market share.
Despite, the strengths of Barbie’s Studio, it also has its
weaknesses such as its high production cost. Since a package deal
is offered, the business needs to take into consideration various
cost in producing the product including its direct materials,
packaging cost, labor cost and overhead cost (e.g., rent, water, and
electricity), which leads to the pricing of the product to increase.
Aside from that, the product is also seasonal. Since the purchase
of cake only occurs for a limited number of times in a month, it is
not guaranteed whether the daily supply of product will be entirely
consumed.
The opportunities and threats cover the positive and
negative aspect outside the company. The biggest opportunity for
Barbie’s Studio will be the product expansion. By adding new
products to personalize (e.g., cupcakes and donuts) and increasing
the options of cake flavor, icing color, and cake toppings, the
business will be able to flourish and achieve financial growth.
Despite this opportunity, Barbie’s Studio will still be facing several
threats. At present, there are numerous existing cake businesses
in the City of Calapan that can imitate the product concept of
Barbie’s Studio. In this regard, competitors that have greater
resources and financing capacity will gain the advantage. In
addition to this threat, the business will also have to be prepared
with the increase in electricity and the prices of ingredients. Due to
fluctuating market prices, the business will have to monitor the
market and adjust their production accordingly to minimize the risk
caused by this threat.
 CHAPTER VIII
CONCLUSION AND RECOMMENDATION

Findings
Market Feasibility
This section discusses the findings of the business on
its market competition and market analysis that is vital in
determining the success of the product.
a. At present, the registered number of individuals in Calapan
City ranging from 15 to 34 years old totaled up to 69,665, which
has an annual growth rate of 1.56% (Philippine Statistics
Association, 2020).

b. According to the result of the survey, the gross market

acceptability showed an 82.70% demand for the package deal
offered by Barbie’s Studio.

c. The survey results also displayed that majority of the

respondents opted to purchase cake once a month garnering
a 56.1%.

d. In its first year of operations, Barbie’s Studio will be able to

attain a 58% market share based on the calculation of its
projected supply and demand.

e. The primary competitors of Barbie’s Studio are the existing

baking studios in the Philippines which currently dominates the
market.
 Technical Feasibility
This section discusses the findings of the business on
the implementation of the proposed product using the
current or available technology.
a. The equipment needed to produce the product can be easily
acquired such as the oven and refrigerator.

b. The ingredients needed to create the cake and icing can be

easily acquired. However, its prices are unpredictable since
market prices are fluctuating nowadays.

c. Barbie’s Studio will be established in a commercial area in

the vicinity of Calapan City, indicating the accessibility of the
business.

Organizational and Managerial Feasibility

This section discusses the findings of the business on its
management prowess and resource sufficiency to bring the
product to the market.
a. The owner of Barbie Cakes, Ms. Barbie Jayne Atienza, has
an extensive history and background in baking. She also
has experience in management as she has been exposed
to their family business at a young age and is now handling
her own business for 3 years.

b. Since Barbie Cakes has been operating for the past 3 years,
it has already established a connection with its supplier and
has attained a huge customer base.
Financial Feasibility
This section discusses the findings of the business on
its ability to finance the proposed business idea, achieve
sufficient income and financially sustain the business over a
long period.
a. The owner of Barbie’s Studio will need a capital of
₱1,771,996 to start the operations of the business.

b. The proponents have evaluated that the product’s selling

price will be able to cover all the production costs including
its direct materials, packaging cost, labor cost and overhead
cost. The proponents have set the markup price to 30%
which led to the product’s selling price amounting to
₱450.00 per package deal.

c. In the first year of operations of Barbie’s Studio, the return

on investment is calculated to reach 41% which will
continue to increase in the following years of its operations

d. It is discovered that the profit margins of Barbie’s Studio will

all be positive and will be continue to remain the same
percentage in the following years. In its first year of
operations, Barbie’s Studio is forecasted to achieve the
following: a 56% gross profit margin; a 47% operating profit
margin; and an 43% net profit margin.

e. The proponents have determined that the asset and equity

turnover will decrease during the following years of its
operations.
 Socio – Economic Feasibility
This section discusses the findings of the business on its
implications on society, the economy and the environment.
a. With the proposed business idea, the customers will be able
to seek a place to personalize the cake they want to gift to
someone.

b. The customers will be able to personalize a cake without the

hassle of baking.

Recommendations
Market Feasibility
This section discusses the recommendations of the
businesses on its market competition and market analysis.
a. Barbie’s Studio must emphasize its value proposition to the
customers through the use of different marketing strategies.

Technical Feasibility
This section discusses the recommendations of the
business on the implementation of the proposed product
using the current or available technology.
a. Barbie’s Studio must create additional options of cake flavor,
icing color, and cake toppings to its customers.

b. Barbie’s Studio must create additional products to be

personalized such as cupcakes and donuts.
Organizational and Managerial Feasibility
This section discusses the recommendations of the
business on its management prowess and resource
sufficiency.
a. The owner of Barbie Cakes, Ms. Barbie Jayne Atienza,
will need to hire additional people to manage and assist
her in the establishment of the expansion idea (i.e.,
Barbie’s Studio) such as cashier and kitchen staffs.

b. The owner must monitor the changing market prices of

the ingredients to minimize its impact on the production
cost and, at the same time, product price.

Financial Feasibility
This section discusses the recommendations of the
businesses on their ability to finance the proposed business
idea, achieve sufficient income and financially sustain the
business over a long period.
a. The owner of Barbie Cakes could apply for a loan to
generate enough capital to start its operations.

b. To improve asset and equity turnover, Barbie’s Studio

must become more efficient in using their assets to
increase the sales of their expansion idea. In addition,
the business should reduce expenses that are
unnecessary in the operations to boost its return on
assets which in return can amplify equity turnover.
 Socio – Economic Feasibility
This section discusses the recommendations of
the business on its implications on society, the economy
and the environment.
a. The expansion idea could help in the economy of
Calapan City as the baking industry will begin to
flourish, entering the era of personalization.

Conclusions
Market Feasibility
This section discusses the conclusions of the
business on its market competition and market analysis.
a. The package deal offered by Barbie’s Studio will have a
high market demand due to its 82.70% gross market
acceptability which reflects that the target customers
accept the product and they are willing to pay for it.

b. In its first year of operations Barbie’s Studio will be able

to penetrate the market with a 58% market share, which
indicates that Barbie’s Studio will be able to compete with
its competitors.

Technical Feasibility
This section discusses the conclusions of the
business on the implementation of the proposed product
using the current or available technology.
a. Barbie’s Studio will develop new flavors of cake and icing
color for the customers to use. Also, the business will
 provide additional options of product to personalize such
as donuts and cupcakes.

Organizational and Managerial Feasibility

This section discusses the conclusions of the
business on its management prowess and resource
sufficiency.
a. In the hiring of kitchen staffs, Barbie’s Studio will be looking
for people who have expertise or has knowledge and
experience in the field of baking. They will be responsible in
the production of the cakes and icing and also in assisting
the customers in personalizing their cake. On the other
hand, the cashier that will be hired will not require any baking
experience.

Financial Feasibility
This section discusses the conclusions of the business
on its ability to finance the proposed business idea, achieve
sufficient income and financially sustain the business over a
long period.
a. It is concluded that Barbie’s Studio will be able to achieve a
good percentage in its gross profit margin (56%), operating
profit margin (47%), and net profit margin (43%) during its first
year of operations.

b. DayaMADE will be able to attain a 41% return on investment

which will continue to increase in the following years of its
operations, indicating the profitability of the proposed
expansion idea.
Socio – Economic Feasibility
This section discusses the conclusions of the business
on its implications on society, the economy and the
environment.
a. A new and innovative concept of baking studio will finally be
established in the City of Calapan, helping the city to further
develop its economy.