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Feasib-Ice Cream Dream
Feasib-Ice Cream Dream
Feasib-Ice Cream Dream
By:
Lanto, Sheila May A.
September 2014
Accountancy Department
College of Business & Accountancy
Approval Sheet
This feasibility study entitled: The Establishment of Ice Cream Parlor,
named Ice Cream Dream in Tanauan City, Batangas, prepared and submitted
by Sheila May Lanto in partial fulfillment of the requirements for the subject of
Management Consultancy of Bachelor of Science in Accountancy, has been
examined and recommended for oral examination.
Member
Member
______________________________________________________________
__
Accepted and approved for partial fulfillment of the requirements for the
subject of Management Consultancy of Bachelor of Science in Accountancy.
Date:__________________
ACKNOWLEDGEMENT
It is never easy to conduct and come up with this feasibility study. I
would have never completed this without the great help and full support of my
family and friends.
The proponent would like to extend her appreciation to the following
persons who have contributed to the success of this study.
To our professor, Sir Raegan Capuno, for giving his constructive
criticisms and outmost support by sharing knowledge from his profession for
the accomplishment of the study;
To my loving parents and family members who supported me in my
moral, spiritual and mostly, financial aspects, and especially the strength and
inspiration you gave in everything I do;
To my friends and classmates, who helped me even in a small way in
contributing to the success of this project;
Above all, to the Creator of All, our Almighty God, who has given the
proponent the knowledge, wisdom and strength to finish this feasibility study;
This will not be a success without their presence.
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Thank you.
S.M.L
DEDICATION
The Proponent
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Executive Summary
Title: The Establishment of an Ice Cream Parlor, named Ice Cream Dream in
Tanauan City, Batangas
Researcher: Ms.Sheila May A. Lanto
Degree: Bachelor of Science in Accountancy
Adviser: Mr. Raegan L. Capuno
Accountancy Department
College of Business & Accountancy
Marketing Aspect
Different methodologies and techniques were used to gather pertinent
and reliable information used in conducting the study. The 7Ps of marketing
was used
to show the different marketing plans of the business. The target market is
stated here and even includes the business logo and tagline.
Management Aspect
The form of business organization of a business is a Sole Proprietorship
managed and operated by single person preferably by the owner. The
organizational structure was also shown here and even enumerated all the job
specifications and descriptions of every employees. Compensation was also
considered in this aspect.
Technical Aspect
This included certain facilities, supplies, materials and equipment
needed for the operations of the business. It also showed the cost of the
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Financial Aspect
Socio-Economic Aspect
In a positive manner, the local and national government will also be
benefited by the project through the additional taxes that will be raised by the
said authorities.
The project in its own little way will help lessen the
unemployment rate by creating opportunities for jobs. The project will also
consider its responsibility with respect to the environment.
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Chapter 1
Introduction
Background of the Study
Putting up a business is never an easy task. It must be planned to
determine its feasibility. As a business-minded person, the proponent thought
of establishing a unique business - a business which will gain the target profit
from the target market. In the Philippines, experts have claimed that food
sectors as a viable business. With this, the proponent comes up with the idea
of establishing an ice cream parlor.
People of all ages love ice cream. It is a cause of happiness and
refreshment for them. Because of the obvious pleasure of satisfying ones own
taste buds, almost everyone has a fond memory of a Birthday party, picnic or
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2. What
are
the
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E. Socio-Economic
Aspect
1. To know the possible contributions of the business in the economy
2. To determine the benefits that can be derived by the community from
the business
To community
This will contribute to the communal fund and help to discover new
ideas for the community.
To the local government
This will serve as a destination for citys promotion. This will also help to
provide a new idea and a new source of income in the city of Tanauan.
To students and future researchers
This study will help their future research as a source of idea and
knowledge in the conduct of their further studies.
Chapter 2
Marketing Aspect
Marketing is a system of business activities designed to plan, price,
promote and distribute want-satisfying goods and services to present and
potential customers. It is considered as the lifeblood of every business
transactions because it is a strategic way on how to cope up to the needs and
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Product
The primary product of the restaurant will be soft serve ice cream
offered in two flavors: vanilla and chocolate. However, the primary product will
be offered in many variations. First, the menu will offer the traditional ice cream
served in a cone or cup either plain or coated with chocolate. Also, smoothies
will be offered in three flavors: vanilla, chocolate and strawberry. Another
favorite to be served will be the old fashioned sundae with a choice of
chocolate and strawberry syrups with marshmallow, rice crisps and sprinkles
toppings. Moreover, the parlor will present an ostentatious presentation of
specialty desserts. The banana split will feature three heaping mounds of ice
cream, three toppings, banana and whipped cream, topped with a cherry. In
addition, the parlor will offer two sizes
of ice cream cakes. Soft drinks will be the parlors secondary product. The drink
menu will include Coca Cola, Diet Coke and Sprite.
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Price
The price of every commodity also affects the buying preferences of the
consumer. The quality of the product will not be sacrificed in order to offer with
an affordable price. The proponent has set the price of the product with high
consideration to company cost and giving the company a justifiable amount of
profit. The proponent will use the cost plus pricing strategy in which total
production cost will be determined and then the business will set a mark up.
Prices of existing products in the market are also being looked up so that a fair
competition will occur.
Place
The place of the business is one of the most important factors that
contributes to and distinguishes the success of a business. The location of the
business must be situated in a place that is accessible to target consumers. It
will be situated in Tanauan Public Market wherein many people pass by.
Besides, it will attract not only residents and students but also a large number
of people who are nearby the place like employees or workers.
Promotion
Promotion is also important in making the product renown to the
customers. Relationship marketing will be considered first such as welcoming
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customers,
soliciting
Process
Process looks at how well your staffs have been trained and how well
your customer facing process work. This includes manner in which customers
and their orders are served and also the amount of waiting time involved in the
production process or the serving time.
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Physical evidence
Physical Evidence is the material part of a service. This pertains to how
you and your product is presented in the market place. Moreover, the business
will offer a comfortable and neat ambiance and even use additional scents to
make their store extremely fragrant. The windows will be decorated to provide
a welcoming atmosphere and entice passers-by to stop in.
SWOT Analysis
Strengths
Weaknesses
Opportunities
The business will be able promote itself as a dessert joint for the nearby
restaurants.
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Threats
CHAPTER 3
Management Study
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Management is one
of the important aspects in establishing a business. It is the performance of
conceiving and achieving desired results by means of group effort consisting of
utilizing human talents and resources. Therefore, management is considered
as the force that runs an enterprise and is responsible for its success or failure.
The Management study is responsible for setting directions and for
business planning, administration and control. This chapter is about the form of
business organization and its structure, and the compensation given to
employees. A management study is essential in order to attain goals and
objectives of the business and how it should operate.
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Organizational Structure
An organizational chart is a diagram showing the salient aspects of an
organizational structure. It shows the relationship between position as to
authority and responsibilities.
Presented below is the organizational chart for ICE CREAM DREAM Ice
Cream Parlor.
Figure 2
Organizational Chart
Cashier
Sales
Personnel
Sales
Personnel
Sales
Personnel
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Job Qualifications
At least 19-28 years old
Owner
management functions
planning, organizing,
background
Job Descriptions
Responsible for the
Handles the
implementation of the
management skills
Monitors the
performance of his
subordinates.
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equipment maintenance,
calibration, shipping, and
Quality Control/Food
Sales Personnel
Male or Female
In charge in the
school level
preparation of the
product
skills
Safety Inspection
Responsible in assisting
Responsible in cleaning
the store and entire
production area
Cashier
giving receipts
level
Responsible in money
transactions
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properly
Handles money/sales
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Compensation
To provide an effective and efficient personnel and workers, the
company will give proper wages to its employees. The minimum wage in
Region 4- CALABARZON is considered in establishing the salaries of every
employee. Ice Cream Dream needs two full time sales personnel who will
assist in providing customers needs and also help in production process. It will
also need a cashier that will be responsible for the sales transactions. They will
work 8 hours a day, from 8am to 5pm with an hour break. They will be
receiving a minimum wage of p255 per day.
Table 2
Compensation Schedule
Personnel
Store Manager
Cashier
Sales Personnel 1
Sales Personnel 2
Monthly Salary
P7650
P7650
P7650
P7650
Annually
P91800
P91800
P91800
P91800
CHAPTER 4
Technical Study
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Business Name
The business establishment needed a name to be acknowledged by the
customers. With this, the proponent chooses the name of the business as Ice
Cream Dream. The proponent comes up with this name because one of her
dreams includes that of establishing her own business and that she also loves
ice cream. With this name, it emphasizes the product being offered and also
encourages people to dream.
Office Supplies
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TOTAL COST
P118.50
P500
P150
P47.50
P150
P59
P54.50
P27.50
P1107
Raw Materials
These are the direct and indirect materials or ingredients needed for the
completion of the product.
Direct Materials
These are items which are directly attributable to the main products.
Direct
Unit Cost
Quantity
Reorder
Cost per
Material
Ice cream
P120/kg
per order
10 kg
point
7 days
month
P5148
Annual cost
P61776
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mix
Smoothies
P115/kg
10 kg
7 days
P4933.50
P59202
mix
Coating
P145/kg
2 kg
5 days
P1740
P20880
dip
Syrup
Mini kisses
Mini
P105/kg
P145/kg
P105/kg
2 kg
1 kg
1 kg
5 days
4 days
6 days
P1260
P1087.50
P525
P15120
P13050
P6300
mallows
Mini nips
Sprinkles
Rice
P180/kg
P140/kg
P140/kg
1 kg
1 kg
1 kg
5 days
6 days
7 days
P1080
P700
P600.60
P12960
P8400
P7207.20
crispies
Banana
Whip
P2/pc
P200
15 pcs
5
everyday
7 days
P900
P4290
P10800
P51480
P200/12pc
everyday
P6000
P72000
P339175.2
cream
Cherry
Total
0
Indirect materials
These materials are not part of the main product but are the same
importance with the direct materials.
Indirect
Unit Cost
Quantity
Reorde
Monthly
Yearly
Material
Cup
P230/1000pcs
per order
1
r point
10 days
Cost
P690
Cost
P8280
Spoon
pack
P25/100pcs
5 days
P150
P1800
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Tissue
pack
P42/1000pcs
10 days
P126
P1512
pack
P1.00/pc
100
5 days
P600
P7200
P18795
Label
TOTAL
Source: Tanauan Public Market
QUANTITY
UNIT COST
TOTAL COST
P70000
P70000
machine
Scooper
Knives
Blender
TOTAL
Source: olx.com
2
5
2
P220
P70
P2000
P440
P350
P4000
P74790
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QUANTITY
4
16
UNIT COST
P1500
P1000
TOTAL COST
P6000
P16000
P22000
Utilities Requirements
Electricity
It is one of the primary utility requirements of a business. Ice Cream
Dream will greatly need this for its proper and smooth operations and for the
business to carry out its operations. This will also set the atmosphere of the
restaurant for its proper lighting and ambiance. The store electricity will be
provided by the BATELEC II.
Water Supply
As the business executes its operations, it needs a good water supply in
order for them to continuously do their job and tasks. A good water supply can
enable them to perform tasks such as cleansing the raw materials and kitchen
utensils, machines, and equipment, and the overall store to ensure safety of
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the
customers.
Water
Chapter 5
Financial Aspect
Financial Aspect includes the quantitative monetary unit of all the aspect
of the business enterprise. This chapter includes the cost of the business
operation to determine the capital requirements. It also covers the projected
financial statement to conclude the profitability or loss of the business.
This chapter refers to the efficient and effective utilization of capital to attain
the objectives of an organization relative to profitability of operations, liquidity
of financial resources and minimization of risks and cost in starting the
business.
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Major Assumptions
1. The initial capital requirement of _______ will be contributed by
the sole proprietor.
2. The values presented are rounded up to the nearest hundredths
to provide a better estimate.
3. Supplies and materials will increase due to inflation computed
follows:
Table 12
INFLATION TABLE
YEAR
RATE
2014
4%
2015
3.5%
2016
5.5%
Source: http://www.tradingeconomics.com/philippines/inflation-cpi
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10. Salaries of
employee will increase based on inflation rate. There shall be no
accrual of salaries.
11. It is assumed that no withdrawal shall be made.
12. Utilities expense will be allocated. Water is _____ and electricity
is charged at minimum cost of _______ monthly.
13. The company is VAT registered and shall base on 12% value
added tax rule and will be shown as a reduction or addition in
necessary accounts.
14. The rent is assumed ______ annually where _______ is for
reservation and rent deposit.
15. The supplier of ice cream is giving 25% credit of the number of
units ordered. Upon the next order the credit will be paid.
16. All expenses are assumed to be paid at the end of the year; no
accrual of expenses shall be made.
17. It is assumed that the ending inventory will be 0 at the end of the
fiscal year and the left over is allocated spoilage and wastages.
18. Selling price will be fixed at ____ and the cost of the product is
estimated to increase ______ each year.
19. Repair and Maintenance Expense is ______ for the first year of
operation and will increase based on inflation rate.
20. A Miscellaneous expense will change annually due to inflation.
21. It is assumed that the expense for Employee benefits is 30% of
the salary of the employee.
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Financial Statements
In analyzing and interpreting financial statements of a particular entity,
the analyst must somehow have standards with which may be compared to the
contents of said statements. These standards may be the figures, ratios or
percentages, or changes indicated in budgets, industry averages, competitors
financial statements and the companys own financial statements for the
period. The primary source of information about the firms financial
performance and position are found in the financial statements.
Income Statement
The Income Statement helps to determine the profit that the business
has earned with its activities during one financial year. If revenues are greater
than the expenses, the business has earned a profit. Otherwise the business
has experienced losses.
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Statement of Cash
Flows
Statement of Cash Flows report on the inflows and outflows of cash to
or from the entity whether by means of operating, financing or investing
activities. The statement provides data about the available cash the firm may
utilize in a specific period.
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Chapter 6
Socio Economic Aspect
The socio-economic impact of this study will clearly state its relevance
to the external aspect of the business. The vision and mission statements as
well as the social, economic and environmental responsibilities are identified in
this chapter.
Vision
Ice Cream Dream envisions itself to be the leading ice cream parlor
particularly in the city of Tanauan and be able to offer extraordinary experience
to its customers.
Mission
In realizing the vision of the business, Ice Cream Dream is committed:
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To be open to all in-store suggestions from customers and test them for
results
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Employment Generation
The business will provide job opportunities to many individuals most
especially to those people who have great passion in food preparation. Every
Environmental Responsibility
The business will be maintaining a clean and conducive environment.
This will be implemented by having proper waste disposal. Trash cans will be
put inside the store so garbages can be properly disposed. Ice Cream Dream
will also be responsible in the environment through considering all things that
may affect it.
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CURRICULUM VITAE
Personal Background
Name
Address
Birthday
March 13,1995
Age
19
Birth place :
Lipa City
Sex
Female
Citizenship :
Filipino
Religion
Roman Catholic
Father
Elmer Lanto
Mother
Sofronia Lanto
Educational Background
Tertiary
First Asia Institute of Technology and Humanities
BS Accountancy
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#2 President Laurel
HighwayTanauan City, Batangas
(S.Y. 2011-2015)
Secondary
Lipa Montessori School of Learning Inc.
Transville Homes, Banay-Banay, Lipa City
(S.Y. 2007-2011)
Primary
Lipa Montessori School of Learning Inc.
Transville Homes, Banay-Banay, Lipa City
(S. Y. 2001-2007)
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