GREEN GALLERY

ACTIVITY 1
SENSE AND SENSIBILITY

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Presented to the
Undergraduate Faculty of Department of Business Administration
University of San Carlos
Cebu City, Philippines

In Partial Fulfillment
Of the requirement for the Course
SOEN 2

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BUAN, APRIL GRACE

CATACUTAN, FREDERIC LANCE
DACLAN, MARK JOSEPH
ENAD, MAY ANN
JAUDIAN, HARVEY JOHN
SALAZAR, ANTHONY
OVERVIEW

Green Gallery is a multisided platform which addresses concerns of alternative

cooking materials as well as dining ornaments for the home in hotels, restaurants and
other institutions as well as domestic households. Corporate partners and their HRIs
become clients who are supplied of the products in bulk quantity. While retail shops shall
manifest and drive the primary sales of the business for small volume of purchases. It
aims to contribute in the reduction unemployment rate from 4.0% to 3.2% in the next 5
years and aims to improve waste management solutions by 20% by reclaiming collected
plastic and reinventing them and advocating strict garbage collection. The influence the
enterprise creates will impact both the environment and the economy because the market
is drawn to new and innovative plastic solutions that would be an agent in the shift of
trends. The following are the value propositions that grounds the enterprise -

Kitchen Zero- Heroes

A new take on modern dining preparation with ornaments made from recycled
plastic. The enterprise also bears crafted kitchenware which are durable and at the same
time friendly to the environment. Disposal of the purchased goods shall incur discounts
upon the next purchase of the customers ensuring zero-waste in the enterprise’s
movement.

What we have, we share

The enterprise is in its best efforts to share its profit to the community it has
partnered with. Through means of production of the goods to be sold, the enterprise
returns their contribution by monetary funding and in kind donations helping them grow
for the better.

A conscious knack for the environment

Minimizing the production of synthetic and harmful plastics by recycling old and
used ones through process of pressurizing and then reforming to a new product. Not only
does Green Gallery support the welfare of the concerned community, it extends solutions
to a growing motion for the environment.
STATEMENT OF THE PROBLEM

Sitio Sab-a of barangay Basak Mandaue faces three (3) major social problems
based from the research and analysis conducted by the proponents.

1. Poverty
2. Waste Management
3. Unemployment

The problems were rooted from minor to intermediate sale problems such as
improper garbage disposal and community discipline that yielded the problem of waste
management. The lack of livelihood, rapid population growth and urban sprawling
resulted to the growing concern of poverty. While lack of skilled workers and the lack of
education resulted to the problem of unemployment. The identified problems, as analyzed
and researched by the proponents, would result the following effect, poor living
conditions, slow economic growth, increase in crime rate (1,3) and intensification of
pollution and floorings and other calamities (2)

OBJECTIVES

1. Effects on Labor Workforce and Employment

It aims to contribute in the reduction of reduction of unemployment rate from
4.0% to 3.2% in the next years through employment of 20% (2,200) of the total
population of the barangay

2. Income
Income will be raised from minimum or below minimum (PHP366.00) to
PHP420.00 inclusive of government benefits

3. Environmental Impact
Improve waste management solutions by 20% in the next 5 years by reclaiming
collected plastic and reinventing them to valuable products

4. Community Progress
Jobs are made easier for the unemployed to access

5. Progress Out of Poverty Index

Green Galley will contribute to the 3.2% decrease of the projected Philippine
Poverty Index
6. Green Influence
The market is drawn to new and innovative plastic solutions that would be an
agent in the shift of trends
OPERATING MODEL
 As the outset, the enterprise shall acquire locally-source plastic wastes from drop-
off centers located in each barangay halls identified as partners of the enterprise in the
city of Mandaue, Cebu also including school waste facilities and commercial
establishments.. After which, segregation of wastes to identify plastics made out of
polyethylene terephthalate is done so that these are to be utilized in the main production
of the offerings of Green Gallery. PET Plastics will go through cleaning process prior to
the manufacturing process within the manufacturing center of Green Gallery through the
aid of the employed workers.

After the plastic recycling process, raw materials are transformed to dining
ornaments and kitchenware and then forwarded to the retailers and as well as introduced
for bidding in the local hotels, restaurants and other institutions. The operating process
continues as sales are expected to rise in the next month and year of enterprise’s
operations. In retrospect, the enterprise shall also consider the market to be the suppliers
of the plastics to be utilized in the manufacturing process as they are also consumers of
plastics in their date to day life, the exchange process is illustrated above.

Finally, the market identified by the enterprise proponents compose of four (4)
segments. Demographically, the enterprise targets both men and women of the millennial
and older generation. This has been strategically identified with respect to the purchasing
capacity of this group and their income levels which retaliates to the price set by the
product. These identified individuals reside within Cebu City as this has been the
identified area of operations. Yet, the enterprise does not only cater to domestic or
household individuals, as most of its expected sales would come from its tapped local
restaurant and hotel chains. The proponents have initially selected F & C Group of
Companies and Hotel, Resort, & Restaurant Association of Cebu Inc. who will provide the
enterprise with a wider network of supply and distribution making the enterprise come to
a whole.

Customers are also seen as individuals who are conscious for the environment
and aware for their social responsibility. With the grounding behavioral segment, the
enterprise is able to carry its two (2) main advocacies, a sustainable enterprise of the
community in Basak, Mandaue, and as green movement in recycled plastic products.
These segments are also expected to enthusiastically be interest in setting up their dining
and kitchen paraphernalia. It is worthy to mention, that as the market nice of penetrated
by the enterprise is seen profitable, those individuals with a knack for the certain aesthetic
and as well as valuable appeal are also seen as prospects towards Green Gallery.
THE BUSINESS MODEL
SENSE AND SENSIBILITY ANALYSIS

WEAKNESSES CHALLENGES AND THREATS

Limited machines available in the Big corporations and their
country monopoly of products
o Limited products would be Decreasing demand of products
made available to the Customer loyalty
market New product designs
Beginning capital is not enough to Competitors’ supply level
support heavy production
Niche markets penetration
Potential production waste

CONCLUSION

The product line of the proposed business proposal is deemed not profitable and
not efficient in terms of sustainability. The limited capacity to produce the products offered
poses the inability to expand its operations. Shifts in both the supply and demand of the
the business landscape deems slow paced growth. High competition poses risk in terms
buyer-customer relationships, making it hard to penetrate the market. Hence, sales
cannot compensate costs in the long run, business is unable to reap benefits, and
longevity is not achievable despite marketing.

Thus, the group decides to take action to address the aforementioned problem by
providing another set of product line - still guided by the same objectives - following the
same operating model and presenting a redefined business model canvas.

NEW BUSINESS PROPOSAL

SOFA SET DINING SET

 The new product line offers upholstery and furniture products. Cloth fibers made
out of recycled PET plastics would be the primary material of seat covers and paddings.
While reclaimed wood would be added as supplementary elements for furniture
products.
BUSINESS MODEL CANVAS
STRENGTH AND OPPORTUNITIES (BUSINESS ENVIRONMENT)

As of 2017, the global furniture market size was valued at $480.7 billion and
expected to grow with an compounded annual growth rate of 5.1% from 2018 to 2025.
Aided by the rise of residential establishments globally, the furniture market is in a stable
growth considering its demand in the market. (Grand View Research, 2018). Meanwhile,
the population in the province of Cebu is 2,938,982 (Philippines Statistics Authority,
2015). There are 669,322 households in Cebu with the average household size being 4

Also, upholstery fabric has its application over wide range of upholstery in indoor
and outdoor areas such as garden, café, hotels, yacht and automobiles among others.
Among the leading factors such as the location, surrounding environment, and consumer
spending ability impacts the choice of upholstery fabric type and designs. Furthermore,
the new developments and innovations in the fabric industry also impacts the selection of
upholstery fabric. With the growing furniture market at a CAGR of 6.3% during the forecast
period is bolstering the production of upholstery all over the world. A positive growth for
upholstery businesses is noticeable, thus making the proposed enterprise a sustainable
one (Goldstein Research, 2019)