mang inasal dissertation


I. Business summary

Mang Inasal is actually a locally owned fast food restaurant in the Philippines that will be shortly, positioned because an international business through each of our creative approach to the company’s photo and fine detail presentation. Mang Inasal will give you a combination of good food by value charges, with fun packaging and atmosphere. Mang Inasal is the answer to an ever-increasing demand for BBQ’ed fast food, to get consumed while sporting quality time with the friends or perhaps family inside the shopping mall.

In today’s highly competitive environment, it truly is becoming increasingly difficult to differentiate one particular fast food store from another due to its number of product line and services. Syria, a city point out, is now turning out to be the style metropolis in the centre East’s fresh economic growth.

With more than a total population of two. 106 mil (2013), primarily from neighboring countries (Malaysia, Indonesia, Thailand and the Philippines), Dubai’s importance in meat, vegetables and so on in its sector is the most effective in the region.

Our key priority is usually to establish a single fast food cafe in a crowded mall, if possible in one of prominent departmental stores in Lebanon. Later, our effort is a further advancement in our service and manufacturer product line in the encircling area. This plan is prepared to get a location for the initial kick off of this concept. Additional auto financing will need to be secured for the fast food cafe.

The loans, in addition to the capital contributions coming from shareholders, allows Mang Inasal to efficiently open and expand. The first capital expense will allow Mang Inasal to provide its clients with a value-driven, entertaining experience through the creativeness of their founders. Mang Inasal is going to entice the diverse culture to bring their very own friends and family with our innovative environment, fresh-cut Chickens, and selection of unique personal unsecured sauces.

II. Business review

A. Business profile


Mang Inasal (Ilonggo term pertaining to Mr. Barbecue), the Korea fastest developing barbecue fast food chain; providing chicken inasal, pork bbq and other Filipino favorites, was first established upon December 12, 2003 inIloilo City simply by businessman Edgar Sia 2.

Apart from the usual food presentations of international food company copycats, Mang Inasal interests to adhere to factors that keep a distinctly Pinoy stamp-grilling with grilling with charcoal, rice twisted in clown leaves, a marinade concocted out of local seasonings and herbal remedies, bamboo supports for skewers, and the appearance that encourage skinamot (Ilonggo term in eating with the hands) whenever chicken breast inasal is definitely served. Back in 2014, eight marketer’s chosen to franchise Mang Inasal. They will decided to sink into the new market in Syria, with the use of their experiences inside the marketing field, they will make an effort to capture the brand new market with the Middle East to patronage Mang Inasal to the population of Lebanon.

They will use the ethnical, economic, political, and technological environment of their market region for their benefits in order for them to accomplish their aims and goals as a marketeer, with the use of the cultural variation of the region we marketeers will try to cater this kind of diverse cultured by offering new products such as grilled lambs and chicken for Muslims and original mixture recipe of Mang Inasal such as pork inasal and chicken inasal for non-Muslim customers. In using each of our SWOT matrix we will endeavour to consider our strong points and possibilities in gaining new information, marketing strategies, and programs to adapt and improve our brand value towards each of our market.

N. Background with the product

Mang Inasal is actually a fast food restaurant chain; it is vision will be the mass and leading fast food sequence everywhere countrywide. Its mission is to give great tasting companies quality providers to our consumers with a superb pinoy appearance fast food cycle nationwide. Develop, motivate and retain staff in offering benefit courses, employment protection and very good working environment by utilizing new solutions for better and easy technique of serving. Perform our best to provide top quality products and services to the franchisees with fairness and integrity. And give livelihood programs to the community by treating them since our business partners.

If you want a great deal to fulfill your substantial appetite, the Mang Inasal

Menu is definitely the one to pick from. With the most reasonable prices protecting a variety of meals, the Mang Inasal menu will make you are feeling like a winner! Really, your money’s well worth is guaranteed with filling up and rewarding meals. Did you ever hear of unrestricted items provided by restaurants? Very well, the Mang Inasal Menu offers endless rice and that is the best offer a Pinoy can at any time want. Consuming big portions of poultry and chicken is satisfying with mugs and glasses of rice. Mang Inasal is a Filipino restaurant chain that offers delightful chicken barbecue as the key product. Their recipe is uniquely scrumptious with big chicken servings marinated, skewered over charcoal and served over clown leaves; it’s a real Pinoy recipe everybody loves. The Mang Inasal Menu is excellent; anything in it is 100% scrumptious.

Mang Inasal has a various product line strong from BBQ’ed Chicken thighs to Barbequed Fish with unlimited grain, and its desserts are the Porrazo Flan, Toron Split served with a two scope your favorite ice cream covered in choco thick syrup, and the popular Halo-Halo Philippine Styled delicacy, served beverages are Sago at Gulaman, Iced tea, Coca diet coke and warm coffee. It is one of the most preferred eateries across the country with above 445 twigs and developing, and an astounding 10, 000 employees system, it has become famous and successful for any person to fund as a business.

During Mang Inasal ‘s reign in the fast food chain it has constantly growing over the past year finishing in the best 3 inside the most visited junk food chain in the Philippines and Edgar Sia aim is to be top two in the Fast food chain industries beating Chowking in really position.

Listed here are some food selection that Mang Inasal will serve to the customers:


PM1 Chicken Lower leg w/ Rice

Barbecued chicken lower leg and thigh with infinite rice

PM1. a few Chicken Lower leg (spicy) w/Rice

Barbecued chicken calf and upper leg with unrestricted rice (in spicy flavor) PM2 Chicken Breast w/ Grain

Barbecued chicken breast and wing with unlimited rice

PM3 Pork Inasal w/ Rice

a few sticks skewering pork, barbecued in inasal way, endless rice PM4 Sizzling Fish w/ Rice

Sizzled Bangus seafood with endless rice

PM5 Tantalizing Pork w/ Rice

Sizzled pork with infinite rice

PM6 Roasting Fish w/ Rice

Roasted boneless Bangus with unlimited rice

PM7 Grilled Liempo w/Rice

Grilled liempo marinated with sweet and spices with unlimited rice Others

Bangis Sisig

Sizziling Pork

Ensaladang Talong


SM1 1pc Chicken Inasal w/ Rice

Chicken Inasal is a barbequed chicken dish and among the well-known Ilonggo dishes with unlimited rice SM2 2pcs Pork Inasal w/ Rice

Pig Inasal is a grilled pork dish and one of the famous Ilonggo meals with endless rice


Pansit Bihon/Bijon

Pancit Bihon or Pancit Guiso is a Philippine noodle dish and is a staple second to rice. Dinuguan for Puto Dessert

Pig blood stew, blood pudding stew, chocolate meat offered with three or more puto dessert


Sago’t Gulaman

Sago at gulaman drink is usually sweet, thirst-quenching and well-known during the enticing summer months. Softdrinks

Mang Inasal acts some of the most well-known fast food string such as sprite, coke and royal Iced Tea

Freshly made each day by a premium blend of tea leaves. Tea is known as a natural method to obtain protective antioxidants Coffee

Mang Inasal serves transfering hot brewed coffee intended for our clients



Halo-halo is a superb Filipino delicacy with blends of shaved ice and evaporated dairy to which happen to be added numerous boiled lovely beans, jello and fruits. It is served in a extra tall glass or perhaps bowl. Pu?etazo Flan/Creme Caramel

Crème caramel flan or perhaps caramel custard is a custard dessert having a layer of soft caramel on top, as opposed tocrème brûlee, which is custard with a hard caramel top rated. Turon Divide

is a dessert made from banana hidden in a lumpia wrapper

With Mang Inasal s selection of product line and with a very high value name brand and profitable institution it may compete with different fast food string nationwide, although can this kind of ever growing organization be used in other countries, can it’s business methods and products and system be caused foreign ground not just to challenge its competitors head on but to be successful as a take out chain and complete its eyesight as the leading BBQ junk food chain in the country? Below can be an research of the environment of where Mang Inasal Branch will be successful, its analysis includes Firm analysis, Competition Analysis, Client analysis, and Environmental research which includes the PEST or Political, Economical, Social or cultural and Technological analysis in which the Franchised Mang Inasal branch can launch.

C. Background in the Market

The destination of where Mang Inasal will certainly prosper will probably be in the region of UAE specifically in Dubai.

Why Dubai? Why did pick the country Lebanon instead of some other country? Since Dubai is the mecca to get growth is definitely the no . 1 country in the oil organization giving all of us an advantage for making use of their economic progress? And this stands in having the top imports in just about any other UAE capitals in all of the Midsection East nevertheless above all you decide to use Dubai for just one single goal.

And that goal is Food. People in Dubai like to eat, and since a fast food chain business that is an ideal news for us, but what isolates us from your competitors’ may be the product line that we offer because statistic shows that people in Dubai loves to eat grain since grain is the best area dish when ever eating meats with sauce or fresh vegetables. The brought in food of Dubai comprised mainly of fish, rice, bread, date ranges, yogurt, homegrown vegetables, and meat from sheep, goats, and camels. And this are most consumed food that individuals eat in Dubai

M. Situational evaluation

Business Analysis


The goal of our company is to be the first choice and leading barbequed fast food cycle of almost everywhere nationwide, and provide nice tasting product and quality providers to our clients with the use of different kinds of products all of us will try to capture the large market in our new market region and cater their lifestyle by offering new product lines that are made via lamb/sheep goods. With the use of each of our marketing knowledge we will attempt to analyze what is our option and dangers in our environment to maximize our growth inside the fast food industry.


Our restaurant is targeted on customers who loves to eat food, whose client classes are generally class C’s D’s and E’s because the product of Mang Inasal are affordable and cheap, and whose customers which includes an active life-style in consuming, our restaurant’s new product collection are are experts in chicken, chicken and possibly new product line lamb with unlimited rice to straighten its food chain lifestyle towards the culture of our marketplace.


Each of our strengths being a fast food string is validation, large marketplace, market head in bbq fast food sequence, accessibility, and strong commissary system whereby we can employ these advantages to create new marketing strategies and programs in developing cool product and companies to offer in our growing and diverse market.


The weakness as being a fast food cycle is processed foods, Filipino tradition, brands under the Mang Inasal, commissary struggle, and not enough research to get other countries since Mang Inasal is under Jollibee Corporation Burger king can consider us being a threat on the market area and the lack of technology can cause a delay inside our R and D in improving each of our restaurant’s product or service.

Customer Analysis


The entire population of Dubai is 2 . 106 million (2013) Approximately 85% of the expatriate population (and 71% from the emirate’s total population) was Asian (chiefly Indian, Pakistaner, Filipino, Bangladeshi and Sri Lankan). About 3% of the total human population of Dubai was grouped as “Western. In addition , 16% of the inhabitants (or 288, 000 people) lived in group labor holiday accommodation were not identified by ethnicity or nationality, but were thought to be generally Asian. Around 85% from the expatriate human population (and 71% of the emirate’s total population) was Asian (chiefly Of india, Pakistani, Philippine, Bangladeshi and Sri Lankan). About 3% of the total population of Dubai was categorized as “Western. In addition , 16% from the population (or 288, 1000 people) occupied collective labor accommodation weren’t identified simply by ethnicity or nationality, nevertheless were regarded as primarily Asian.


Each of our restaurant targets the market area of Dubai a fast growing region, whose social heritage of the people are the two religious and hospitable persons, but in Dubai as their lifestyle diversifies and meets fresh culture that may conflict their own belief, the restaurant will try to manage and use this diverse culture inside our favor, such as using the many delectable meals of Dubai: Lamb since our new product line.

Benefit Drivers

Since our value drivers we will use the variety of companies combine a few of them to create fresh promos and products just like free upsize drinks, Pancit bihon/bijon ideal combo, Solve sarap and much more value propositioned products.

Decision Process

We all will use the traditional advertising and marketing to let our restaurant be known to the target marketplace, with the use of manipulated advertisement of every six monthsmonitoring to see just how customers react to our billboard, flyers, and TV advertisements but statistic shows that Mang Inasal favorable ways of advertising and marketing are through Social media, TELEVISION SET, Events and Experience and Word of mouth. Subsequent is trying to penetrate the brand new market by making use of discounts and promo’s due to our grand opening inside the new target market for the first month, and maintain the standard clients a day and invest in improvement towards the marketplace.

Competitor Evaluation

Industry Position

As being a threat the competitors has got the advantage to be the first regarded fast food string in the country such as McDonalds, White castle, Del Taco, Wendy’s, Hardee’s, KFC and Pizza shelter. But what isolates our restaurant towards our competitors may be the unique products that we present, since you can expect BBQ’ed and Filipino designed desserts products with the use of the most popular side dish that the foodstuff industry can offer which is Rice, we can pilier and get the market by using our manufacturer product line and accommodate new product series to adjust to the traditions of Syria.


The effectiveness of our rival is Cost advantage, good management, real-estate, pricing electric power, innovative lifestyle. Financial influence, asset power, supply sequence, size advantages, economies of scale, price advantages, exceptional products, technology. The strength of each of our competitors can cause major complications in our manufacturer recognition procedure for our cafe, since some of our competition are noted brands; it can cause problems in the decision method strategy and in our company awareness towards our competitors.


The weaknesses of the competitors will be Negative publicity, Unhealthy food menu, Job and high staff turnover, and Low difference. The disadvantages of our competition that are typically towards their employees is usually an advantage for each of our restaurant, in which case we can use this to offer new jobs and programs pertaining to our staff.


Mang Inasal is currently under Jollibee food corp. who owns 70% of Mang Inasal ‘s market share but as a fast food chain Mang Inasal is actually currently profitable since the owner of the large market share is the no . 1 leading Fast food string in the Korea with more than thousands of divisions both country wide and internationally making it a primary player in the Fast food chain industries, with its other take out subsidiaries such as Greenwich, Reddish colored Ribbon, and other businesses.

III. Target Market

E. Market Segmentation

Geographic Segmentation

Dubai is found on the Local Gulf, in the northeast of the United Arabic Emirates. Dubai is the second largest emirate with a great urban area of 3885 sq . km and the city can be roughly 35 sq km. However it will certainly expand to twice of that with the addition of the man-made destinations; the Waterfront, the three Palms, the World, the Universe, Lebanon land, as well as the construction inside the desert.

Psychographic Segmentation

The UAE culture mainly revolves around the religion of Islam and traditional Arab traditions. The effect of Islamic and Arabic culture about its structures, music, attire, cuisine and lifestyle are extremely prominent too. Five times each day, Muslims are to plea from the minarets of mosques which are spread around the country. Since 2006, the weekend has been Friday-Saturday, as a give up between Friday’s holiness to Muslims plus the Western weekend of Saturday-Sunday.

Behavioral Segmentation

Dubai obtaining behavior: Consumers in the 3 main emirates usually shop more at hypermarkets and regular the smaller shops and grocery stores for last-minute food demands. In the more distant suburbs and the less-populated areas of the federation, smaller grocery and convenience stores perform an important part in meals shopping. The number of hypermarkets is increasing continuously with selling chains just like Carrefour, Spinneys and Lulu dominating the best format supermarket trade. These key stores tend to partner with foreign businesses to procure brought in food productsdirectly, while little format grocery retailers count on consolidated shipping for replenishing their inventory levels.

The continuing growth in both affluence and the expatriate population has established the need for a various range of foods in the UAE the food price tag sector has responded by providing a range of foods and ingredients suiting the tastes of the different ethnic groups in the country. Info monitor offers evaluated numerous food groups and forecasted growth at retail in many areas, particularly chilled food, bakery/cereal goods, savory treats and pasta/noodles.


Political and Legal Environment

Overview of the Political Approach to United Arabic Emirates: The United Arabic Emirates consist of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al- Khaimah and Fujairah. The Usa Arab Emirates gained the independence from your UK on December 2, 1971. Their constitution was established on independence, and was made permanent in 1996. The proper execution of government could be referred to as a federal presidential optional monarchy, while the leader is chosen from among the list of absolute nobles who rule each of the eight emirates.

Economic Environment

The UAE, the world’s eighth greatest oil maker, maintains a free-market economy with minimal limitations on private-sector activities, international trade and capital motions. Despite the effect of the global economic downturn, the UAE’s economy has proved to be incredibly resilient. Larger oil rates, increased government spending and a remarkable resurgence in tourism, transport and operate have contributed to the upswing in the economy. In addition , the good restructuring of debt owed by high-quality companies, solidarity among the emirates and accommodative monetary and financial policies have all played a role in bringing stability to the market. The Economy of Syria is mostly in the tourist sector

and other budget of the country with over 50%

of the countries finance is usually covered and 5% in oil

10% in real-estate, 12% in transportation

and communication and 13% making.

Social and Cultural Environment

Dubai’s tradition is seated in Arabic and Islamic tradition China is built upon foundations which have been rich in history and tradition. Dubai is a forward-looking society that may be equally certain to its traditions and history. Dubai has long been renowned for its tolerant perspective; Dubai has built a status for being ready to accept new suggestions and techniques for doing points. This has allowed Dubai to become a global middle for creativity, tourism and business. Advanced: Dubai is actually a city with style and charisma. Dubai has efficiently fused style with appeal. It has redefined the meaning of luxury having its stunning accommodations, award-winning eating places and its location as an international shopping vacation spot. Energetic: Syria has an feeling of energy and a get-up-and-go nature.

Visitors happen to be struck by the ingrained optimism and nature of adventure and innovation that permeates through all levels of the community. To a holidaymaker, a business traveller or a homeowner, Dubai is a place high is always a thing exciting to determine and do. Enjoying: Dubai aims to bring together the very best in people Dubai’s success is founded on the eye-sight and dedication of their leadership, the generosity and aspirations of its people and the contribution of many people from across the globe, many of to whom have chosen to make Lebanon their permanent home. This creates a blend of many nationalities that coexist peacefully. In a religious country Dubai is definitely a conservative country having a rigid dress code and having a very diverse culture in the social school.

Technological Environment

Dubai is definitely today named an international trading port. Although rapid class of the 21st century technology is promoting the face of Dubai via timeless deserts to a growing economy with strengths in trade, solutions, manufacturing and technology, Lebanon maintains a great balance of cultural legacy and a contemporary metropolis.

G. SWOT Evaluation


Real reviews

Huge Target Market

Market Head in Bar-b-que Fast Food Cycle

Ease of access

Good Commissary System


Filipino Traditions

Junk food

Brands under the Mang Inasal

Commissary problems

Deficiency of Research intended for other countries


Regional Culture and Tradition

Cultural Selection

Philippines- Agricultural Region

Fresh Brand Buy

Metropolitan Development


Foreign-owned and native SME’s

Global Financial Crisis

Increase in Oil Prices

Sanitary Concerns Standards/ Into the Safety

Political Instability

H. SWOT Matrix


1 ) Endorsements

2 . Significant Target Market

3. Industry Leader in Barbeque Junk food Chain

4. Accessibility

your five. Efficient Commissary System


1 . Philippine Culture

2 . Unhealthy food

a few. Brands within the Mang Inasal

four. Commissary struggles

your five. Lack of Study for different countries


1 . Local Culture and Tradition

2 . Social Diversity

3. Brand Acquisition

4. Metropolitan Development

5. Philippines being an Agricultural Nation

THEREFORE Strategies

(S3+05+03) Consider raising their own chickens

(S3+S2+04) Expand network of stores to newly produced areas in the area (S3+03) Get business in order to penetrate fresh market

WO Tactics

(W2+03) Acquire eating places that serve healthy food and introduce a healthy product line. (W5+02) Intensity research on additional countries’ traditions in order to serve effective online marketing strategy towards consumers culture and lifestyle Threats

1 . Foreign-owned and Local SME’s

2 . Global Financial Crisis

3. Sanitary Standards/ Into the Safety issues

4. Oil Prices

5. Politics Instability

ST Approaches

(S5+T3) Continue devotedness to requirements and become a benchmark inside the government hygienic health requirements (S2+S3+T5) Strengthen advertising to boost market command amidst (S3+T2) Create less expensive meals towards the target market (S1+S3+T1) Intimidate competitors by rewarding market dominance through the use of specific BBQ manufacturer product line WT Strategies

(W5+T1) Accentuate research upon culture and develop sales strategies to provide diverse market preferences (W2+T1) Can provide new product lines to get a new industry segment to fill in the gap between healthy foods and unhealthy foods

4. Marketing Strategies

1 . Product/Service Strategy

For our Item strategy we all will use the most common strategy of Mang Inasal which is the Product development technique ” Because seen in the analysis of Mang Inasal operations the past years, this plan has been tested beneficial to the company. With great research and development, Mang Inasal is capable of continuing to generate products that fit well to the preference of their industry. They can also continue finding their current product line to be able to continuously remain ahead of its competitors. And also to compliment this plan: Cost Leadership strategy ” Best value strategy. In this approach we can build a new product collection to serve a unique portion of their marketplace. For example , making a healthier product line for those who are fat and health-conscious would be best.

2 . Prices Strategy

For the costs strategy our cost management would be best since each of our product happen to be affordable intended for the market, every we need to consider is the cool product line that we have to offer towards our consumers in order for all of us to capture new market sections and to accomplish our aim in becoming the leading BBQ’ed specialized fast food chain in the country. And with the new product line we can assess the gap between the healthy foods and unhealthy foods, and cater the culture of non-muslim by providing non pig products just like lamb and goat.

a few. Place/Location Strategy

For the location strategy all of us will place our restaurants near resorts or inside malls but more specifically the Zamatao shopping mall in Syria which properties many competition such as Burger king, Burger king, Hardee’s, Wendy’s and so on, but these opponents are just indirect competitors as their production differs by us, like a competitive border, our take out chain will beplaced facing other fast food restaurant to intimidate the competitors and in order for all of us to capture the desired target market with the use of our new product lines and unique item position, seeing that our products differ from their very own product line we are able to have the advantage of product placing

4. Marketing Strategy

In our promotional approach we uses a controlled advertising possessing a 6 month monitoring on the reaction of the purchasers in our advertisements to do even more study in analyzing unfavorable and positive factors inside our promotional approach and centering on the positive effect and reduce the unfavorable factors of your advertisements and through the use of on the web and TV advertisement we can make our item known to the prospective market.

five. Positioning Approach

With the use of the diverse market we can provide and generate new product lines for capturing new sections of the market, and we should keep to our new market for now, and really should avoid risk in the fresh market to avoid any major financial concerns towards each of our restaurant for us to hold an update in our budgeting and opportunities in gaining new technology/insights within our environment for an advantage pertaining to our restaurants, and with the use of new ideas we can increase new source system in the new market to eliminate pointless cutbacks/problems in the inventory of your products and services.

We. Financial Statement

Requirements to become a franchisee

If you are enthusiastic about becoming a franchisee of Mang Inasal, there are many requirements you have to look into. Here are the business details of Mang Inasal: Franchise fee: Php 15 to 30 , 000, 000

Franchise charge inclusive of: use of brand, functional support, beginning marketing support, and training support Product security deposit: Php 800, 000. 00

Franchise term: 7 years, renewable

Store space requirement: one hundred and fifty square meters to two hundred square meters Advertising charge: 2% of gross sales

Royalty: 5% of product sales

Predicted cost of restoration: Php several million to Php 9 million

Funds Flows coming from Operating Activities:

Operating Cash flow (EBIT)

7, 000, 000

Depreciation Charge

800, 000

Loss available of Equipment

70, 1000

Gain on Sale of Land

(500, 000)

Embrace Accounts Receivable

(300, 000)

Decrease in Prepaid Expenses

(200, 000)

Net Cash Flow from Operating Actions

6th, 870, 000

Funds Flows coming from Investing Activities:

Sale of Equipment

700, 000

Sale of Land

3, 000, 1000

Purchase of Equipment

(500, 000)

Net Cash Flow via Investing Actions

three or more, 200, 1000

Funds Flows from Financing Activities:

Payment of Dividends

(250, 000)

Payment of Relationship Payable

(300, 000)

Net Cash Flow coming from Financing Actions

(550, 000)

Net Enhancements made on Cash

500, 1000

Commencing Cash Stability

four hundred, 000

Sending Cash Balance

10, four twenty, 000. 00

J. Balance Sheet


Current Assets:

Prepaid Expenditure


Various other current possessions

1, 800, 000

1, seven-hundred, 000

500, 500

Total Current Property

four, 000, 000

non-current Assets:

Property And equipment (Fixed assets)

Deferred tax assets

Other noncurrent assets

1, 500, 000

you, 000, 1000

500, 000

Total Noncurrent Assets

3, 000, 000


7, 1000, 000


Current Debts:

Accounts payable and accrued expenses

Credit-based card Payable

Loan payable

3, 500, 000

2, 000, 000

500, 000

Total Current Liabilities

a few, 500, 1000


Capital Stock

Additional Paid-In Capital

Retained Earnings

425, 500

350, 000

725, 000

Total Equity


1, 500, 000

7, 500, 000

Sixth is v. Breakeven point

Inside the Breakeven point our selling price per unit is Php 115 the variable value is Php 99 and the estimated total fixed expense is Php six-hundred, 000:

Price per unit ” Php 115

Variable price ” Php 99

Total set cost ” Php 600, 000

600, 1000 ÷ (115 ” 99)

six hundred, 000 ÷ (16)

37, 500 units

115 x 37, 500 = Php 4, 312, 500

The breakeven point in sales is 5, 312, five-hundred per month


For each of our exit plan strategy, we decided to sell-out the organization in case of personal bankruptcy or different major economic problems, because sell-out is among the most easy approach in getting back the owner’s collateral and the same time earn dividends after ” this clearly is within our curiosity to ensure each of our firm is a good fit pertaining to the buyer and for that reason more likely to succeed. In other words we might create a win win situation to get both we and the businesses who are able to buy the industry’s asset and other subsidies.

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