Chapter 1

INTRODUCTION

The growing Takoyaki Production sector in low-income countries offers easy

access to inexpensive food as well as new job opportunities for urban residents. While

this development is positive in many ways, it also presents new public health challenges

for the urban population.

Teenagers today are fond of trying new dishes regardless of knowing its safety

and its content. Being so adventurous leads them to be unconscious on the foods they

eat and the place where they buy it. Takoyaki vegetables are known because of its

affordability and enchanting taste. In accordance to this matter, the Takoyaki Production

decided to come up with the ideas it’s because this food is nutritious coming from the

vegetable like carrots and cabbage, that taste and healthy of the food will be assured.

Considering factors such as aesthetics, methods of preparation, presentation of

food, quality of the products, sanitary procedures and best service accommodation will

be the key factors to attain customer’s trust and loyalty. Through quality management,

customer’s satisfaction will be achieved.

GENERAL OBJECTIVES

A. To be able to change the perception of people regarding nutritious and healthy

of takoyaki vegetables.
 B. To increase the level of awareness of customers on the different ways that the

takoyaki production can be introduced from a simple and ordinary recipes to a

nutritious, stylish and savory dishes or cuisine,

C. To line up with other competitors using our unique approach in making

takoyaki vegetables.

D. To offer an affordable, nutritious, but delicious and a satisfying takoyaki

vegetables.

MANAGEMENT FEASIBILITY SUMMARY

The Takoyaki Production will be located in front of the playground in Luneta Park,

Surigao City. The said location is ideal for the proposed production for it has a wide

area it is accessible and within reach of vehicles and peoples rendezvous. The chosen

area of our product which is Takoyaki Production has already an area of a space and a

building to put up a business.

The proposed production is structured under the sole proprietorship which is only

the owner can get the profit of this business.

MARKETING FEASIBILTY SUMMARY

The Takoyaki Production is one of the nutritious foods that we offer for every

customer in the snacks. Projection of demand, supply, and sales of the takoyaki

production operation is based on the different factors like the population growth, market

acceptability, capacity to supply and other factors. This study is feasible because our

target population is willing and capable of availing our products and services. We also
consider factors like our competitors and prevailing prices of the suppliers that will affect

our prices. Based on our demand supply analysis we found out that we can supply the

available market based on our production capacity.

TECHNICAL FEASIBILITY SUMMARY

The products that we are going to offer are takoyaki production with high demand

and nutritious for our customers. Our products are takoyaki production with the small

shape of ball and color brown with the fillings of cabbage and carrots. We served to the

customers 4pcs of the takoyaki balls for only 15.00. Machineries and equipment were

enumerated as well as other supplies with their corresponding cost. The project is

feasible based on the different aspect that we consider in operating this business.

SOCIO-ECONOMIC FEASIBILITY SUMMARY

The takoyaki production is the very good business that we can offer for every

individual. Our products are nutrious and vegetables, and very affordable to your pocket

and it’s good of our health if we are buy of this food.

SIGNIFICANCE OF THE STUDY

This study is unique since this is the first conducted to compile our requirements

of our course. The objective of this study is to help the costumer’s to find the right

product that they can purchase when the time snacks. Another objective is to inform the

costumer about the positive effects eating the takoyaki vegetables. The significance of

the study is to give to people about the nutritional values of takoyaki production. And to
give people an idea on how the takoyaki prepare their product. And to know the

advantages and disadvantages in eating takoyaki vegetables. This research study is

made to satisfy the knowledge of people about the takoyaki productions.

METHODOLOGY

The researcher’s had conducted so much hardship to make this study successful. They

have done their best in order to achieve necessary information together with the big

help of their parents in terms of financial aspects.

The researcher’s had visited the area of their respondent to conduct interviewed about

the Takoyaki production on how to make or prepare it properly. The researcher’s also

get secondary information through the help of the internet, magazines and books.

SCOPE AND LIMITATION OF THE STUDY

The study will tackle the feasibility of a takoyaki production business that is

located at the front of playground Luneta park, Surigao City, also the acceptance of the

present and potential customers, on how well they will respond to these foods served

for every customers.

 Our primary customers are those only who belong to the age bracket 3 to

24 years old, teenagers, male and female and our secondary target is between the ages

of 25 and 37, which are a very affordable to buy, and to purchase more and also who

are residents of Surigao City. The competitors that the firm will consider are those street

foods which are located within the vicinity of Luneta Park, Surigao City.
CONCLUSION

Being a student requires focus in diet. If one cannot afford anything to intake for

meals, then it is a threat to class performance, participation and most especially, health.

This study on takoyaki production proves to show the good that it can pose as a student

of business administration. Takoyaki production therefore allows consumption, even in

small amounts, in order to somehow quench hunger. It is nutritious and healthy

according to the data collected and it is also practical to purchase. It is cost-effective

and its patronization suggests the concept of worth in economical values. Other than

that, awareness of the students’ preference is also discovered.

Health risks should be put into consideration, though. There are still dangers in

its intake. The physical environment that surrounds this food’s category is mostly people

rendezvous. In the background, several mishandling and threats have been mentioned

already. Nonetheless, the disadvantages of these foods do not bother most of the

students taken into account. Only of them are non-consumers while the remaining is

satisfied with the quality of its taste and value.

CHAPTER 2

MANAGEMENT FEASIBILITY

BUSINESS ORGANIZATION

Every owner has their own choice of what kind of business organization is

suitable for their business. The proposed business project, which is Takoyaki
production, we choose sole proprietorship as the most suitable form of business

organization. In this form, the proprietor can easily start the business after completing all

regulatory requirements. From a legal point of view, the owner of a proprietorship is not

separable from the business and is personally liable for all debts of the business. From

an accounting prospective, however, the business is an entity separate from the owner

(proprietor). The owner cannot be paid salary or wages from the business, instead, the

owner may withdraw funds or other property from the business. These withdrawals are

treated as reduction to the owner’s capital investment or financial interest of the owner

in the business. The sole proprietorship is the boss; he makes all the decisions related

to the business, being, most often, the business manager at the same. The owner also

requires all the profits his business realizes.

Sole proprietorship has its disadvantages these are: 1) Financial resources of a

single proprietor are limited. Considering its small assets, banks are reluctant to grant

big amount of loans; and 2) the owner has unlimited liability, he risks not only the assets

of his business, but also his other personal assets.

ORGANIZATIONAL STRUCTURE

Organizational structure indicates who performs which task and who supervises

whom. Organization structures may differ in terms of the specific needs of a given

business enterprise. Since the business is just starting, we only hire two (2) workers to

do the fieldworks and operations in charge.

Figure 2.0 ORGANIZATION CHART

OWNER/MANAGER/
CASHIER

CREW COOK

Show above is the organizational structure of the Takoyaki production business.

The owner is at the same time the manager and the cashier for it will be costly to hire

other personnel for the position, besides the tasks and not that complex to handle

solely.

MANAGEMENT PERSONNEL REQUIREMENTS

Management personnel are the people needed in the daily administrative

operation of the business.

Table 2.0 Management Personnel Requirements

Position Duties Qualifications Salary

Manages and handles Has the capability

The
Owner/ Manager/ all the financial aspect of handling the
table NONE
Cashier and makes decisions business.

related business.

Total Monthly Salary NONE

Annual Salary (including 13th month pay) NONE

shows the owner only because the other personnel are tasked to perform the technical

aspect of the proposed business.

Table 2.1 Personnel Contributions – Employee

Position Annual Salary Deductions Net Total 13th Month Pay Net Pay
SSS Philhealth Pag-ibig Total
Cook 48,000.00 1,743.60 1,050.00 960.00 3,753.60 44,246.40 4,000.00 48,246.40
Crew 30,000.00 1,089.60 1,050.00 600.00 2,739.60 27,260.40 2,500.00 29,760.40
Total 6,493.20 78,006.80

Table 2.2 Personnel Contributions-Employer

POSITION DEDUCTIONS TOTAL

SSS Philhealth Pag-ibig CONTRIBUTIONS
Cook 3,656.40 1,050.00 960.00 5,666.40
Crew 2,330.40 1,050.00 600.00 3,980.40
TOTAL 9,646.80

BUSINESS LOCATION

Deciding where to reside your business establishment is one of the crucial

part in putting up a business. A good location has a great effect in the outcome of one’s

business that is why it needs a lot of thinking.

The proposed business is a production so it needs to have a location that is ideal

for Takoyaki. Aside from the climate of the place it should be that the location is
accessible to the target market so that customers will have no difficulty in reaching the

site and transfer of product will be easy.

The Takoyaki production will be located in front of the playground in Luneta Park,

Surigao City. The said location is ideal for the proposed production for it has a wide

area it is accessible and within reach of vehicles and peoples rendezvous.

The chosen area of our product which is Takoyaki Production has already an

area of a space and a building to put up a business. And is available for lease

amounting to seven thousand pesos (P 7,000) every month. The comfort room is

already been built inside.

Figure 2.1 Location of Proposed Business

Figure 2.2 Sketch of the Proposed Business

REGULATORY REQUIREMENT

Before the operation of a business starts, it is important that it has completed all

the legal papers required for its establishment. The Takoyaki production will comply with

the following regulatory requirements:

1. Mayor’s Permit

This should be secured at the place where your business is located. In this

proposal, since the locality of the business is in front of the playground of Luneta

Park, Surigao City, and then the proprietor will need to secure mayor’s permit

from the municipality’s local government unit.

2. Certificate of Business Name Registration

 This regulatory requirement is for the application of your business name through

the Department of Trade and Industry. This is the proof that your business is

registered upon the law imposed by the DTI. It is to be submitted prior to the

issuance of the BIR certificate of registration. This is to prevent other from using

your business name and therefore, no other business shall be used same

names.

3. BIR Certificate of Registration

A business should register to the Bureau of Internal Revenue to properly file

income taxes and generally securing a Tax Identification Number (TIN). All

individuals engaged in trade or business shall accomplish and file the application

before the commencement of their business operation.

Table 2.2 Regulatory Requirements

Description Amount
Barangay Clearance 100.00
Mayor’s Permit 750.00
Bureau of Internal Revenue 615.00
Department of Trade and Industry 215.00
Total Regulatory Requirements 1,680.00

Shows the expected regulatory costs in organizing your business started and these

are treated as period expenses, charged to expense at end of the period. It represents

all required legal requirements.

BUILDING, FACILITIES AND EQUIPMENT REQUIREMENTS

 In establishing a business, it is anticipated to incur certain costs to get the

business started and these costs are treated as capital expenses. These include

amounts paid or incurred in relation with activities undertaken before the business

begins, for the intention of making profit as the operation becomes active. The following

tables indicate the cost of the things needed in connection with the business operation.

OFFICE EQUIPMENT, FURNITURE AND FIXTURE REQUIREMENTS

Office equipment, furniture and fixture are assets of an enterprise for

administrative purpose and are expected to be used more than one period accounting

period.

Table 2.3 Office Equipment

Description Source Unit Cost Qty. Total Cost Life Annual Depreciation
Calculator Unicity 260.00 1pc 260.00 5 52.00
Stapler K-3 Centerpoint 220.00 1pc 220.00 5 44.00
Total Office Equipment 480.00 96.00

Table 2.3 shows the office equipment needed in the operation of the proposed

business. To get the annual depreciation we simply divide the total cost over the

estimated useful life.

Table 2.4 Office Furniture and Fixtures

 Description Source Unit Cost Qty. Total Cost Life Annual Depreciation
Plastic Chairs K-3 Center Point 190.00 9 pcs 1,710.00 5 342.00
Plastic Table K-3 Center Point 300.00 3 pcs 900.00 5 180.00
Total Office Furniture and Fixtures 2,610.00 522.00

The table 2.4 shows the furniture and fixtures needed in the office in which we

calculate the total cost over estimated useful life to arrive at its annual depreciation cost

per year.

Table 2.5 Office Supplies

Description Source Unit Cost Qty. Total Cost

Ball Pen Uni City 5.00 5 pcs 25.00
Pencil Uni City 5.00 3 pcs 15.00
Bond Paper(short) Uni City 168.00 1 ream 168.00
Ordinary Receipt Uni City 15.00 3 pad 45.00
Staple Wire #10 Uni City 9.75 3 bxs 29.25
Trash Can Uni City 115.95 2 pcs 231.9
Dust pan Uni City 75.00 2 pcs 150.00
Broom Tabo 50.00 2 pcs 100.00
Journal Notebook K-3 Center Point 75.00 2 pcs 150.00
Total Office Supplies Costs 914.15

The table 2.5 shows the lists of office supplies needed to run a Takoyaki

production business with corresponding costs. To get the total cost we simply multiply

the unit cost and the quantity of each supply. We assumed that the cost will increase by

5% every year.

Table 2.6 Office Supplies Projection

Year Total Cost

2016 914.15
2017 959.86
2018 1005.57
2019 1051.27
2020 1096.98
 The table 2.6 shows the projected office supplies expense and where we

assumed that there will be an increase by five percent (5%) annually due to inflation.

Figure 2.2 Perspective View of the Proposed Stall

Figure 2.3 Floorplan Layout of the Proposed Stall

 CHAPTER 3

MARKET FEASIBILITY

MARKET ENVIRONMENT

Market environment refers to the collection of non-marketing influences that have

an impact on a marketing manager’s success in forming and keeping favourable

relationships with desirable customers. Marketing strategies must be formulated in

doing that, target market should first be identified and selected. Target market is a
group of people also the customers like Uneducated, student’s, profession or non-

profession level that the aim its marketing efforts. We have chosen this group for

several important reasons. It is our goal to be "the impressive food stall place" and we

believe that the age group from 3 to 25 is the primary age where brand building efforts

could take place. They are on limited or fixed incomes and seek a value/price

relationship that will not stretch their budgets. Our secondary target is between the ages

of 25 and 37, which are a very affordable to buy, and to purchase more. They are more

flexible in budgets and seek more than a value/price relationship. This proposed

business aims its marketing efforts into areas of Surigao City and is up for expansion in

the future. The study will focus on the said area. Characteristics of the target market

must be known as well as the size of the Luneta park area, to help provide mean for

ascertaining the most economical approach to reach them.

Market environment includes the small forces within the company that affect its

ability to serve its customers such as the company itself, its suppliers, marketing

intermediaries, customer markets and publics; the industry in which a company

operates and the industry’s market’s and the larger societal forces that affect the

microenvironment refers to the forces that are close to the company and affect its ability

to serve customer .It includes the company itself, its suppliers, marketing intermediaries,

customer markets and public. The key to success for these business proposed was

mainly due to the popularity of Luneta Park, Surigao City as the students relaxing mood

for these place. Students are the strongest "buzzer." Usually after they went back from

school, they told friends and families about it. Parents give more money to kids and

students to buy lunch. Fast food is naturally their first choice, because of the brand
building effort that heavily targets their age group. And they will enjoy it by bringing their

family, especially if they have smaller kids,

These factors are to be considered in developing strategies for getting the

products into the hands of customers in a timely, cost-effective and appropriate manner

and when studying consumer and organizational buying behaviour. It is no wonder if

there are already takoyaki production in the province is the small scale which is not

enough to supply the total demand for the product. Potential buyers of the product are

the wholesalers, retailers and individuals, young or adult since takoyaki is a good for the

health.

COMPETITION

For creating awareness about the product, we will ask help with acquaintances,

pears, and relatives to spread the message about the existence of the production.

Moreover, the production is located at a place where it could easily be seen by

everyone and accessible, that factor itself is a help for the promotion. In terms of its

distribution, we will contact directly prospective wholesalers and retailers within the area

of the target market and encourage nearby customers to buy by conducting a free

testing.

Every business has both direct and indirect competitors. There is always a

competition especially in a free-enterprise economy. Rivalry for target market share

among industry competitors can range from low to extreme, and the level of intensity

refers to the extent to which businesses within an industry put pressure on one another.

The intensity of the rivalry can pose a threat to an industry as a whole by limiting profit
potential when competitors forcefully target one another’s markets and aggressively

price products to gain the business. Several factors determine the intensity of rivalry,

including the extent of exit barriers, amount of fixed costs, and number of competitors in

the industry, growth rate of the industry and demand conditions. A direct competitor is a

company that offers the same primary services to the same customer base. An indirect

competitor is a company that offers the same or similar services as part of a wider

service offering or that offers a good or service that can serve as a viable substitute.

Both types of competitors can draw business from a company, and a good business

plan should account for both types of competitors. The difference between direct and

indirect competitors is not always that clear, however. Indirect competitors can also be

businesses that offer a substitute for the offering of the primary company. For example,

a fried chicken restaurant competes directly with other fried chicken restaurants, but it

also competes indirectly with taco stands, hamburger joints and other quick-service

restaurants. While the specific product offering differs, each fulfils the same basic need:

fast snacks at low prices.

When creating business and marketing plans, many businesses fail to account

for both direct and indirect competitors, yet both can impact the success of a company.

In fact, there is some evidence that indirect competitors can draw more business from a

company than direct competitors. This is especially true when the competitor offers

multiple offerings in the same location. Buyers are the customers – or market of outputs

– and they have the power to affect price and terms of purchases. By putting pressure

on an industry to lower prices and improve quality, influential buyers can reduce the

profitability potential of a business and increase competition in the industry. The

bargaining power of buyers can be strong or weak. Buyers are strong when they buy in

large volume, substitute products are available or the supply chain is varied. These

factors can change over time and should be regarded as a possible threat in a

competitive analysis. Rivalry for market share among industry competitors can range

from low to extreme, and the level of intensity refers to the extent to which businesses

within an industry put pressure on one another. The intensity of the rivalry can pose a

threat to an industry as a whole by limiting profit potential when competitors forcefully

target one another’s markets and aggressively price products to gain the business.

Several factors determine the intensity of rivalry including the extent of exit barriers,

amount of fixed costs, and number of competitors in the industry, growth rate of the

industry and demand conditions.

Table 3.0 LISTS OF DIRECT AND INDIRECT COMPETITORS

Direct & Indirect Competitors Address

Mrs. Jona F. Tadulan

Panubigon, Surigao City
(popoy’s ngoyong)

Mr. & Mrs. Junjel Omboy

Ipil, Surigao City
(chicken skin)

Mr. & Mrs. Delvin Reese

Sabang, Surigao City
(takoyaki)
INDUSTRY

Takoyaki Vegetables is indeed a sumptuous food to offer for everyone. It is a

healthy food because it is a good source of fiber, protein and carbohydrates thus may

consider being a complete snack. Such delicious and healthy food! Once tasted, you

will surely crave for more. Takoyaki ingredients such as cabbage, carrots, eggs, flour,

sugar and salt this are the necessary of mixing as well. Only five minutes consuming

time to cook the takoyaki balls. It is commonly sold as street food in the Philippines and

also big cities and other countries.

In the Philippines, Takoyaki eaters prefer two classes of sauce which is sweet

sauce and hot sauce. Sweet Sauce contains only mayonnaise and catsup while Hot

Sauce is garlic, onion, chili powder, catsup, water and flour. Takoyaki live by its

commitment to its customers in complying with quality, highly nutritious and delicious

takoyaki food. Certainly a delicious and nutritious food starting available at 3pm in the

afternoon until 9pm in the evening at Luneta Park, Surigao City.

BUSINESS MODEL

A Business model describes core aspects of a business, including purpose,

business process, target customers, offerings, strategies, infrastructure, organizational

structures, sourcing, trading practices, operational processes and policies such as

culture.
 Our proposed business is focused on bringing satisfaction to the business itself

and to its valued customers as well. In initial operation, the business generated

opportunities to expand its resources, increased its product lines, enhanced technical

knowledge and skills of its people, developed flexibility with business dealing and

provided additional knowledge and experiences to its workers.

By doing so, business model continually maintain excellent and effective

business relationship among other establishment thereby gaining their trust and

confidence to our food services and gave us the advantage in keeping pace with the

intense competition in the market today and the capability to meet greater demands of

tomorrow.

CHANNEL OF DISTRIBUTION

Figure 3.0 Channel of Distribution of the Proposed Takoyaki Production.

Producer
 CUSTOMER
RRRR

Figure 3.0 shows the channel of Distribution of the proposed business which is direct

selling to end-users or the customer.

MARKETING AND SALES STRATEGY

Marketing and sales strategy consists of plan that positions a company’s to a

competitive advantage. It is how a firm sells and promotes their product that would

encourage customers to buy through applying applicable marketing tools that constitute

the marketing mix of the firm. Marketing mix refers to the set of marketing tools that the

firm uses pursue its marketing objective in the target market. It consists, of product,

distribution, promotion and pricing strategies. In connection with our proposed Takoyaki

production, to achieve such advantage, we formulate some strategies such as:

 First and foremost, providing a good quality of product to our customers.

 Cleanliness of the area.

 Serve at a low price with a high quality.

For creating awareness about the product, we will ask help with acquaintances,

pears, and relatives to spread the message about the existence of the production.

Moreover, the production is located at a place where it could easily be seen by

everyone and accessible, that factor itself is a help for the promotion.

Table 3.1 DEMAND AND SUPPLY PROJECTIONS

Individual Population of Surigao City

 YEAR Population
Past
2011 142,741
2012 144,942
2013 147,143
2014 149,344
2015 151,545
Projected
2016 153,746
2017 155,947
2018 158,148
2019 160,349
2020 162,550

Table 3.1 shows the individual population of Surigao City for the perspective past

years (2011-2015). This data is based on the survey made by the National Statistics

Office (NSO). The projected year are calculated by getting the difference between the

years 2010 and 2000 which are the years that the NSO can only provide and the result

of which is to be divided by 10 years resulting to 2201. That would be the assumed

increase of the total population for the following years.

Table 3.2 Project Demand and Supply Gap

 Demand/
Population Demand Supply Percent
Supply
Year 1 2 3 (4=(2-3) Unsatisfied
(5=(4/2)*100
%
PAST
2011 142,741 28,548 4,282 24,266 85%
2012 144,942 28,988 4,348 24,640 85%
2013 147,143 29,429 4,414 25,014 85%
2014 149,344 29,869 4,480 25,388 85%
2015 151,545 30,309 4,546 25,763 85%
PROJECTED
2016 153,746 30,749 4,612 26,137 85%
2017 155,947 31,189 4,678 26,511 85%
2018 158,148 31,630 4,744 26,885 85%
2019 160,349 32,070 4,810 27,259 85%
2020 162,550 32,510 4,877 27,634 85%

The table above shows the data of the demand and supply gap for the past and

for the projected years. We assumed that 20% of the population (Table 3.1) will be the

assumed percentage who will purchase the product and 15% of it will be assumed

percentage of demand that can be supplied by the manufacturer.

The percent unsatisfied is computed by dividing the demand and supply gap by

the demand, and multiplying the quotient by 100.

Table 3.3 Market Share

Production Projected
Market
Year Supply+
(serve) Share
Production
2016 164,250 168,862 97.27%
2017 172,463 177,141 97.36%
2018 180,676 185,420 97.44%
2019 188,889 193,699 97.52%
2020 197,102 201,979 97.59%

The table above shows a constant production annually from 2016 to 2020. To get

the production, we assumed that 450 serve will be produced a day. In the third column,

the production of takoyaki is added to the projected supply in similar years. The

production was estimated to have an annual increase of 5%.

Table 3.4 Sales Projections

Year Unit Price(per serving) Quantity Sales Revenue

2016 15.00 156,037.50 2,340,562.50
2017 15.75 172,051.88 2,709,817.03
2018 16.50 180,264.38 2,974,362.19
2019 17.25 188,476.88 3,251,226.09
2020 18.00 196,689.38 3,540,408.75

The table 3.4 shows the sales revenue for the projected 5 years. The selling

price of our product is P15 per 4 pieces of Takoyaki and were we assumed that there is

an increase of 5% annually. The total production of Takoyaki is 164,250 serving. The

quantity sold will increase at 5% annually. The sales revenue is computed by multiplying

the price to their respective quantity produced annually.

 Table 3.5 Inventory Costing of Takoyaki Production

Beginning Good's Inventory

Production Production Available End (5% of Quantity Cost Price Unit Price IB Cost IE Cost
for Sale Production Sold
1 2 (3=1+2) (4=1*.05) (5=3-4) 6 7 (8=2*6) (9=4*6)
164,250.00 - 164,250.00 8,212.50 156,037.50 2.27 15.00 - 18,642.38
172,462.50 8,212.50 180,675.00 8,623.13 172,051.88 2.27 15.75 18,642.38 19,574.49
180,675.00 8,623.13 189,298.13 9,033.75 180,264.38 2.27 16.50 19,574.49 20,506.61
188,887.50 9,033.75 197,921.25 9,444.38 188,476.88 2.27 17.25 20,506.61 21,438.73
197,100.00 9,444.38 206,544.38 9,855.00 196,689.38 2.27 18.00 21,438.73 22,370.85

Table 3.6 Annual Cost analysis of Takoyaki Production

RAW MATERIALS Qty. Unit Price Cost

Cooker 1 4,000.00 52,000.00
Crew 1 2500.00 32,500.00
Egg 200 trays 132.00 26,400.00
Cabbage 730 kls. 40.00 29,200.00
Carrots 730 kls. 50.00 36,500.00
Oil 365 kls. 72.00 26,280.00
Catsup 1,095 pcks 5.00 5,475.00
Mayonnaise 52 gallon 274.00 14,248.00
Garlic 52 kls. 70.00 3,640.00
Magic Sarap 122 dozen 35.00 4,270.00
Takoyaki Stick 365 bundle 10.00 3,650.00
Disposable Takoyaki Plate 1,095 packs 20.00 21,900.00
Flour (class A) 15 sacks 2000.00 30,000.00
Paint Brush 6 pcs 35.00 210
LPG 3 tanks 900.00 2,700.00
Stall house (rent expense) Monthly 7,000.00 84,000.00
Total Cost 372,973.00
Divided by no. of production
164,250
produced in one year
Unit Price 2.27
Mark-up (560.79%) 12.73
Unit Selling Price 15.00

The table 3.5 shows the cost analysis of Takoyaki based on the quantity

produced annually. The total operating cost is computed by adding the total cost of

materials and the salary of the workers and the annual salary of the cook and crew is

based on Table 2.1 including their 13 th month pay.

 CHAPTER 4

TECHNICAL FEASIBILITY

PRODUCT DESCRIPTION

Figure 4.0 Takoyaki Product

Takoyaki is a ball-shaped Japanese snack made of a wheat flour-based batter

and cooked in a special takoyaki pan. It is typically filled with minced or diced octopus

(tako), tempura scraps (tenkasu), pickled ginger, and green onion. Takoyaki are

brushed with takoyaki sauce (similar to Worcestershire sauce) and mayonnaise, and

then sprinkled with green laver (aonori) and shavings of dried bonito (katsuobushi).

There are many variations to the takoyaki recipe, for example, ponzu (soy sauce with

dashi and citrus vinegar), goma-dare (sesame-and-vinegar sauce) or vinegared dashi.

Takoyaki was originated in Osaka around 1935 and became popular in other

areas of Japan. It’s one of most popular street foods along with Okonomiyaki and can

be found at the street vendors, convenience stores, supermarkets, food courts, and of

course takoyaki specialty restaurants. It literally translates to “octopus (tako) fried (yaki)”
 and some may call it “Octopus Balls” or “Octopus Dumplings”.Takoyaki is always served

piping hot. It’s slightly crispy outside and gooey inside.

Takoyaki is eaten with a stick, but in Tokyo eaten with disposable chopsticks.

Takoyaki sellers always provide 2 sticks toothpicks for one person; because the

takoyaki are pierced with a toothpick can spin when lifted and fell before entering into

the mouth. Our product Takoyaki is made up of vegetables like carrots and cabbage.

Figure 4.1 Takoyaki Pan

HOW TO MAKE TAKOYAKI VEGETABLES

1. Batter Preparation:

 8 cups of water

 6 cups of flour class A

 3 eggs

 11/2 cups brown sugar

 2 Tbsp. salt

 1pc magic sarap

2. Fillings Preparation:

 1kilo Cabbage
  ½ kilo Carrots

3. Toppings Preparation:

 Takoyaki Sweet Sauce (Mayonaise and Catsup)

 Takoyaki Hot Sauce (Garlic, onions, chili powder, catsup, water and flour)

MANUFACTURING PROCESS

1. Heat up the pan within 5 minutes before starting.

Figure 4.2

2. Oil the little sections (they

are using a dedicated

oiling brush, but you

can use a wadded up paper towel or a wad of cotton wool held with

chopsticks. Be sure to oil the top of the pan too.)

3. Pour in the batter - don't worry if it overflows a bit. You don't need to fill all

the compartments either (I find that dealing with 12 compartments at a

time is my maximum.

Figure 4.3
 4. As soon as the batter is poured, drop the carrots and cabbage in one per

compartment.

Figure 4.4

5. When the outsides are sort of dried out, cut through the connected bits

(where the batter ran out) and turn them over about 3 minutes with the

wooden skewer. If you turn them too early the takoyaki will collapse and

turn into a sad, ragged lump of goo. It takes a bit of practice to gauge

when to turn the balls over, but you soon get the hang of it.

Figure 4.5

6. Turn the balls over all the way. Keep flipping then round and round with

the skewer.
 Figure 4.6

7. If the ball has a little hole, add a tiny bit of batter to an empty section and

put the ball hole-side down into the batter (Overall it takes about 5 minutes

per batch, from start to finish.)

8. The takoyaki are done with they feel lighter when you poke and turn them

with the skewer, and are lightly browned a bit crispy on the outside.

9. The key is for the takoyaki to be hollow on the inside. This allows the

insides to steam, which cooks them nicely while retaining a creamy

texture.

Figure 4.7

10. To serve, place the takoyaki on a plate with mayonnaise and takoyaki

sauce. Enjoy, but be careful, the insides are hot!

Figure 4.8

NUTRITIVE VALUE AND HEALTH BENEFITS

 Takoyaki, a tasty snack coming from Japan, is very many diets friendly, as one of

its ingredients are too high in fat or calories. However, there are different versions of

the recipe and some of them require slight changes in the spices and amounts used.

The calories in Takoyaki per 1235grams (8 pieces) are 317 calories. In every 1 ball of

Takoyaki there are 70 calories. Takoyaki is calculated to be 257Cal per 100 grams

making 80Cal equivalent to 31.13grams with 44.98grams of mostly

carbohydrates、12.7grams of protein、8.13grams of fat in 123.5grams while being rich

in vitamins and minerals such as

Nutrition Facts Vitamin B12 and Selenium. Calories

Serving Size 24.9g are sometimes thought as the

Amount Per Serving reason why most people are fat, yes
Calories 79 calories from fat 52
and no. Different people needs
% daily value*
different amount of calories to live
Total Fat 5.8g 9%

Saturated Fat 2.6g13%

throughout the day.

Trans Fat 0.0g

Cholesterol 49mg 16%

Sodium 85mg4%

Potassium 33mg 1%

Total Carbohydrates 4.2g 1%

Dietary Fiber 0.2g 1%

Sugars 0.4g Legend

Protein 2.4g Fat

Vitamin A 4%
Protein
Calcium 2%

*Based on a 2000 calorie diet Carbs

Nutritional details are an estimate and should only be used

as a guide for approximation

 Alcohol

Other

Calorie Breakdown

Daily Values

Table 4.0 Raw Materials Requirements

Raw Materials Qty. Unit Price Cost

Egg 200 trays 132.00 26,400.00
Cabbage 730 kls. 40.00 29,200.00
Carrots 730 kls. 50.00 36,500.00
Oil 365 kls. 72.00 26,280.00
Catsup 1,095 pcks 5.00 5,475.00
Mayonnaise 52 gallon 274.00 14,248.00
Garlic 52 kls. 70.00 3,640.00
Magic Sarap 122 dozen 35.00 4,270.00
Takoyaki Stick 365 bundle 10.00 3,650.00
Disposable Takoyaki Plate 1,095 packs 20.00 21,900.00
Flour (class A) 15 sacks 2000.00 30,000.00
Paint Brush 6 pcs 35.00 210.00
LPG 3 tanks 900.00 2,700.00
Total Cost 204,473.00
The table above shows the annual raw materials/ingredients, quantity, and the price of

the materials to be used in the production of Takoyaki. The quantity of each item

mentioned on the table above is based on the production that there will be 164,250

pieces of Takoyaki to be produced annualy.

Table 4.1 Production Personnel Requirements

 Position Duties Qualifications Salary

Has the

Manages and handles capability of

Owner/ Manager NONE
the business. handling the

business.

Purchases the

necessary

ingredients/raw

materials to be used.

Prepares the
Graduate or at
ingredients and is
least second
responsible for
Cook year level. Know 4,000.00
cooking the desired
how to cook
taste of the product.
Takoyaki.

Ensures that the

kitchen is hygienic

and comfortable

before and after

cooking at all times.

To facilitate their task

and their job.

In charge in serving At least high

Crew 2500.00
the customers and school graduate.

maintaining the

cleanliness in the

area.

Total monthly salary 6,500.00

Annual Salary (include 13th month pay) 84,500.00

The table shows the personnel that composes the takoyaki production.

Table 4.2 Projected Electricity Consumption

Year Annual Energy Consumption

2016 12,000.00
2017 12,600.00
2018 13,200.00
2019 13,800.00
2020 14,400.00

The table above reveals the data about the annual consumption of electricity. As

mentioned above 1,000.00 is assumed monthly bill, and since it is express annually, we

simply multiply the said amount to 12 months. The monthly bill is assumed to increase

by 5% annually.

Table 4.3 Projected Water Consumption

Year Annual Water Consumption

2016 9,600.00
2017 10,080.00
2018 10,560.00
2019 11,064.00
2020 11,592.00

The table above reveals the data about the annual consumption of water. Since it

is express annually, we simply multiply the said monthly bill, which is P800.00 to 12

months and is assumed to increase by 5% annually.

Table 4.4 Takoyaki Supplies Requirements

 Description Source Unit Cost Qty. Total Cost
Disposable Glass Palma Superstore 25.00 10 250.00
Disposable Plate Palma Superstore 20.00 10 200.00
Spoon Palma Superstore 20.00 10 200.00
Toothpick Palma Superstore 25.00 2 boxes 50.00
TakoyakiPan Lazada, Online Shopping 10,000.00 1pc. 10,000.00
Plastic Bag Supermarket 25.00 5 125.00
Total 10,825.00

The table above shows the necessary requirement to be used in the operation of

the proposed business. This includes the cost and quantity of each tool.