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Feasibility Samople
Feasibility Samople
Feasibility Samople
Chapter I
Executive Summary
A. Types of Business
1. Nature of Business
partnership agreement. Since partners are college friends and already built a trust to
each other, they decided to combine their properties and money as a source of their
alternative yet nutritious snack/merienda for the reason that Filipino are known for
being a merienda lover. Just how much do, we, Filipinos love to eat, besides the usual
three meals a day, we have morning and afternoon snack so that cassava-custard cake
is one of the best option of Filipino in taking merienda. It can also be a dessert
because it is like a leche plan but more delicious than the leche plan.
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2. Name
The owners decided the name of the company as “NERRIENA’s Food Co.” It
was derived from the name of the owners, namely; Kristine wherein Ne was
taken. rrie for Jerrilyn and na for Ronalyn. Using Nerriena as proponent’s
company name was tribute for friendship and as a compliance to their promise
before, that they will going to establish a business under that firm name.
3. Product
will partly added with choco-mocha which is a unique flavor cassava cake and to
make it different in taste into the other cassava products. It is an excellent source
of nutrition and energy. Other healthy ingredients are sugar, milk, coconut milk,
cheese etc.
Management Aspect
Once marketing issues have been addressed, it is the time to take a look at key
organizational issues. A study of this aspect will help the management to select the
appropriate form of business, design the internal structure and staff organization, with
who is the appropriate and qualified individual to manage the business or might as
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well call on the certified attorney or other advisor if necessary. All of these should be
Marketing Aspect
The aim of the marketing study is to ascertain the future total demand for the
product; determined the competitive situation of the product in the industry, establish
the annual quantity which it may sell, estimate the future selling prices and design of
of the business. It results to information about the market potential which provides the
The purpose of market analysis is to thoroughly acquaint yourself with all the
aspects of market so that you can formulate a plan to capture a share of it.
Financing Aspects
The cash requirements and financing leverage of the firm on one hand, and the
facing economic crisis condition. Taking the risks is one way of proving that there is
Being one of those manufacturers in the food industry, we assure that we will
contribute betterment not only for us but for everybody. First we want to promote
healthy food with regards to our product. Through cassava custard cake in its simple
way we can supply the excessive loss of nutrients to maintain healthy body function
for Filipinos.
Second, we fully understand that, to find a job today is really hard, so,
Chapter II
Marketing Plan
The marketing aspect is the most important part in making project feasibility study
the sales turnover. The primary concern of the small business enterprise in making an
analysis on the trend of services and in manufacturing, the company will determine its
profitability but also the changing trends of market, for the producers/business owner to
come out with the new kinds of the product and manufacturing according to the needs of the
customer.
A. Product/Service
market, just as Filipinos are starting to have the feel of enjoying quick merienda and
dessert.
Nerriena’s Food Company provides Cassava –Custard Cake that will suit
eat “kakanin” even foreigners like it. Services will be open from 8:00 am to 8:00 pm
everyday.
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B. Target Market
1. Area Coverage
your product /services if it is not accessible to the target market, the effort of
near OLACS ( Our lady of Abandoned Church School) were the customer
2. Consumer
Cassava-Choco Delight is any age not less than 1 or 2 years old. Our product
is not just good for life but also helping consumers in maintaining their
healthy life.
Over the years, the Philippines witnessed a substantial growth in the Manufacturing
and Food Industry food is intricately linked with its culture and traditions. Outside the
home, eating has become lucrative for the retail business. The demand for the food
like Cassava Custard Cake is now gaining for a lots of franchise business offered it.
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Our company will be introducing a different style of making cassava cake and by the
product name Cassava-Custard Cake that will attract Pinoy taste preference. We have
computed the total population from the current population in Barangay Poblacion,
Muntinlupa City which is 80,801 and the growth rate is .014. See Table 1.
Table 1
Nerriena’s Food Company
Demand Schedule
Potential Customers in Poblacion Muntinlupa City
Note:
• .014% Growth of Barangay Poblacion, Muntinlupa City from the Muntinlupa
Municipality Projected Population of Barangay Poblacion.
• 70% projected demand for Cassava Custard Cake for ages 5- above y/o (3 pieces
of cassava cake per order)
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Table 2
Nerriena’s Food Comapany
Projected Sales
Note:
2. Present Competitors
and above. On the 70%, based on the survey that the proponents conducted 5% of the
total population will purchase Cassava-Custard Cake. From the total demand of
Table 3
Projected Number of Competitor
Total
Demand Nena’s Julies Alvarez Cassava-
Year (Projected Cassava Bakeshop Bakeshop Custard
demand *12 Store 28% 25% Cake 14 %
mons/order) 33% *supply gap
2010 407, 232 134, 387 114, 025 101, 808 57, 102
2011 412, 992 136, 287 115, 637 103, 248 57, 819
2012 418, 752 138, 188 117, 250 104, 688 58, 625
2013 424, 512 140, 089 118, 863 106, 128 59, 432
2014 430, 272 141, 990 120, 496 107, 568 60, 238
must be done even before operations. Printing of flyers will be one way of
introducing the product. The use of banners and streamers will also be effective.
Marketing Program
Product
There will be the same kind of compound to other in its nature but in its
content and mixture will differ for is more nutritious and delicious.
Pricing
As a start, we want to accept by society from the time we have opened the
business. We determine our prices by getting the large number of tallies to survey
which the people we have surveyed want the majority of the reasonable price the
In this section of the marketing plan, the proponent has decided to give flyers
Table 4
Types of advertisement Cost
Flyers (leaflets) Php. 1,500
Banners Php. 1,000
Steamers Php 500
Total Php. 3,000
Chapter III
Production/ Operation Plan
process of the product, building and a structure, the capacity and design of the
machinery, plant size and plant layout.. This is also deals with the requirements with
the raw materials, and other supplies and the labor requirements.
description of the proposed process for producing Cassava Cake wherein items will
be presented only to the extent necessary to understand the business and come up
The financial study will therefore reflect costs based on whatever technical
and production data the proponents and other industry sources provided. The result of
this study can calibrate and adjusted if there are charges in product design.
Step 6: Put 1 cup of mixed cassava into the (cooking pan) llanera.
Step 8: When the water gets to a rolling boil, arrange the llanera with cassava
C. Manufacturing Process
Table 5
LABOR REQUIREMENTS
Food service supervisor Manager - Supervise and monitor the flow of production
- Secure the quality if the product being
purchase
- Do the tabulating and daily recording of sales
Production Chief (cook) - In charge in all product preparation
- Checks all products as it leaves the
production area and tabulates each individual
order or proportion of the product.
Table 6
MACHINES / EQUIPMENTS USES
Steamer - Use to cook / steam the cassava cake.
Grinder - Grind the cassava into a very small pieces
Llanera (cooking pan - Use to have different size and designs of Cassava
cake
Electric Stove - Use to cook the product
Freezer - A storage cabinet, compartment. Or room where food
or other perishable goods can be frozen and preserved
at a very low temperature.
Factory Overhead
13th Month Pay 45,000
Payroll Taxes 30,600
Insurance 754
Light and Water 29,880
Repair and Maintenance 1,885
Rent 2,500
Depreciation 7,682
Total 118,301
Location is a vital part in the success of the business to be established. It’s determines
G. Plant Layout
This includes the factor plan of the establishment. This will gives us an idea of
how it will look like when it is finished. Also, the proposal layout is to be able to
collectors usually garbage daily and the trash should be disposed properly. The
company’s waste disposal is located at the backside near delivery lock of the store.
Garbage will compose of biodegradable and non- biodegradable with separate trash
cans.
premises. The drainage pipers course the ways to the main sewerage system in the
area.
I. Quality Control
qualities of the product as well as to service. Below are someway to provide quality
control system.
• Standard recipe
• Proper sanitation
• Proper hygiene and cleanliness on the production (includes the proper attire of the
crews)
Chapter IV
Organizational Structure
The organization Plan includes the study of the organization and forms of the
business with its keys personnel and officers. In this aspect we can determine the real
because it presents the information and planning up the initial operation of the
business. The effectiveness of this plan will bring to realization the feasibility of this
project.
The proposed business venture named “Nerriena’s Food Company” will be organized
property, talent or industry with the intention dividing the profit and losses among
themselves according to their agreed ratio. Each partner is personally liable for any
B. Organizational Structure
Manager(s)
Packaging Cashier(s)/
Chief Cook(s) Purchaser Crew
C. Qualification of Officers
The propose business will be the General Manager, Finance Manager,
Supervisor and Customer Relation Staff or Service Crew. The employees will be
required to work 8 hours including one hour break a days. The business will start
employee will do their duties and tasks assigned to them. It can be expected that
different special services will perform by each staff, according to the needs of the
customer.
Table 11
Cahier or Service Crew
JOB SPECIFICATION JOB DESCRIPTION
• 18-25 years old • Will handle all inquiries and
• At least 2 years in College phone calls
(have background in • Do record keeping and
Accountancy) tabulating of sales (per day)
• Must have good public relation • Itemize and total all customer
• Has a pleasing personality order (per order)
• Prepares sales summary
D. Gantt Chart
5. Site development
6. Acquisition of equipment, furniture
and supplies
9. Training employees
E. Administrative Expense
Table 12
Position No. of Employees Rate per Month Monthly Cost
Food Production 2 persons 9,000.00 18,000.00
Chief Cook
Cashier/Service 2 persons 9,000.00 18,000.00
Crew
Packaging Crew 1 person 9,000.00 18,000.00
Total 5 employees 27, 000.00 54,000.00
Note:
• Minimum rate of employees P 300.00 per day.
Chapter V
F. List of Schedule
Schedule 1 Projected Sale
Year Supply Gap Price Sales
2010 57, 012 30 1,710,630
2011 57, 819 31.50 1,821,299
2012 58, 625 33.08 1,939,315
2013 59, 432 34.73 2,064,073
2014 60, 238 36.47 2,196,880
Schedule 5
Insurance
Items Base Rate Insurance Operating Factory
70% 30%
Factory Machinery & Equipment 22,500 2% 450 450
Office Equipment & Furniture 11,485 2% 229.7 160.79 68.91
Other Equipment 3,725 2% 74.5 74.50
Total 754.2 610.79 143.41
Schedule 6
Depreciation
Items Total Estimate Value Annual Operating Factory
Cost d Life Depreciation 70% 30%
Leasehold 2,500 5 500 400 280 120
Improvement
Office Equipment 11,485 5 500 2,237 2,237
Factory machinery & 22,500 5 500 4,400 4,400
Equipment
Other Equipment 3,725 5 500 645 451.5 193.5
Total 7,682 2,968.5 4,713.5
Schedule 7
Rent Expense
2010 2011 2012 2013 2014
Rent Expense 30,000 31,500 33,075 34,729 36,465
Schedule 10
Starting Expense
Pre- Operating Expense:
Securities and Exchange Commission 2,000.00
Bureau of Internal Revenue 2,500.00
Annual registration of Business Permit (mayor’s Permit) 250.00
Annual Barangay Clearance Permit 500.00
Annual Sanitary Clearance 500.00
Annual Community tax Certificate 100.00
Annual Garbage Fee Payment 150.00
Annual Signboard Fee Payment 100.00
Annual Health Certificate fee Payment 135.00
Annual General Insurance Policy 450.00
Department of Health 1,500.00
Zoning Clearance 160.00
DTI Permit 365.00
Total 8,710.00
Add: Advertising 3,000.00
Total Pre-Operating Expense 11,710.00
Schedule 17
Nerriena’s Food Company
Property Plant and Equipment
31,870.18
Total 47,155.18
Schedule 18
Capital Contribution:
Owner 1 (Zamora) 45,000
Owner 2 (Sales) 45,000
Owner 3 (Kosca) 45,000
Total: 135,000
Schedule 19
Accrued Expense
Breakdown
Accrued light and water
Ending Negative (2,990) (3,289) (3,618) (3,980) (4,378)
Beginning 2,990 3,289 3,618 3,980
Light and water operating 20,916 21,962 23,060 24,213 25,424
Payroll Taxes FOH 8,984 9,412 9,883 10,317 10,856
Payment 29,890 31,075 32,614 34,148 35,882
Schedule 20
Office Supplies
Annual Used:
Total 12,192
Capital Outlay
Leasehold Improvement 2,500
Office Equipment 5,590
Office Furniture 7,195
Factory Equipment 31,870.18
Total Capital Expense 47,155.18
Working Capital
Operating
Pre-Operating 11,710
Salaries and wages 51,000
Payroll Taxes 3,090
Office Supplies 12,192
Water and Electricity 2,490
Repair and Maintenance 565.50
Allowance for Contingency 4,713.50
Total Working Capital 84,921
Capital Needed 132,076.18
Capital Contribution 135,000
J. Kosca 45,000
R. Sales 45,000
K. Zamora 45,000
Profitability Ratio
Payback Period
Year Cost of Investment Net Operating Balance Payback Yrs.
to be Recovered inflows
Return on Sales
I Demographic Profile
Table 9
Factory Supplies Quantity Unit(s) Cost Unit Total
Flat Tray 3 Pcs 85 Pc 255
Scooper 2 Pcs 75 Pc 151
Knife 1 Set 800 Set 800
Basin 2 Pcs 60 Pc 120
Chopping Board 1 Pc 249.99 Pc 249.99
Trash can 2 Pcs 199.75 Pc 299.50
Calculator 2 Pcs 500 Pc 1,000
Weighing Scale 1 Pc 269.75 Pc 269.75
Measuring Cups 2 Set 99.99 Set 99.99
Chairs 2 pcs 150 pc 300
Total 3,545.23
Office
Equipment and Quantity Unit(s) Cost Unit Total
Furniture
Office table 1 Pcs 2,000 Pc 2,000
Office Chair 1 Set 1,000 Set 1,000
Electric Fan 1 Pc 1,500 Pc 1,500
Ceiling Fan 2 Pcs 1,225 Pc 2,450
Light 2 Pcs 170 Pc 340
Cabinet 1 pc 4,195 Pc 4,195
Total 11,485