I.

EXECUTIVE SUMMARY

This chapter discusses the general information, market aspect, technical aspect,
management aspect, financial aspect and the social benefits/desirability of the proposed
business.
1.1 General Information
Proposed Project : Taro and Banana Chips
Project Location : Purok Mapailubon, Barangay San Isidro,
General Santos City
Proponent : Dolores Food Products
Incremental Employment :2
Address : Purok Mapailubon, Barangay San Isidro,
General Santos City
Contact Person : Mrs. Dolores C. Palma
Designation : Owner
Contact Number : 09061586298

Brief Description of the Project

The proposed project is the improvement of Dolores Food Products in which

the said business will construct its own building, acquire machineries and additional
equipment to increase the production. The project aims to provide livelihood to
unemployed women specifically to housewives near the production area.

Dolores Food Products is a chips processing business. With the proposed

project cost of P439,134.99, 397,434.99 will be loaned for the construction of
building, acquisition of machineries and additional equipment. P41,700 will be
coming from the initial investment of the owner. The proposed project will focus on
processing taro and banana chips. It will still be located at Purok Mapailubon,
Barangay San Isidro, General Santos City.
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Total Project Cost and Proposed Sources of Funds

DOLORES FOOD PRODUCTS

Total Project Cost
Category Schedule Debt Equity Total
Fixed Assets
Building 1 217,533.00 217,533.00
Machinery and Equipment
Peeling Machine 12,000.00 12,000.00
Slicing/Cutting Machine 15,000.00 15,000.00
De-oiling Machine 18,000.00 18,000.00
Flavoring Machine 21,000.00 21,000.00
Weighing Scale 990.00 990.00
361 L Pan 7,000.00 7,000.00
Double Burner 800.00 800.00
Table (Stainless) 13,000.00 13,000.00
Styrofoam Box 4,800.00 4,800.00
Sealer 2,980.00 2,980.00
Chairs 4,900.00 4,900.00
Ceiling Fan 4,785.00 4,785.00
Permits and Licenses 10,000.00 10,000.00
Total

Working Capital
Direct Materials 2 63,080.00 63,080.00
Direct Labor 3 30,200.00 30,200.00
Indirect Labor 4 5,250.00 5,250.00
Utilities 5 6,316.99 6,316.99
Repairs and Maintenance 1,000.00 1,000.00
Office Supplies 500.00 500.00
Total Project Cost 397,434.99 41,700.00 439,134.99

Source of Fund Amount Percentage

Debt 397,434.99 91%
Equity 41,700.00 9%
Total Project Cost 439,134.99 100%
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General Objective:

The objective of the project is to increase the production of Dolores Food

Products. This will further provide livelihood to the community.

Specific Objectives:

 To prove the sustainability of the project as to the marketing, technical,

management and financial aspect of the business.
 To seek financial assistance from financial institutions for the construction of
the building, acquisition of machineries, additional equipment and direct
materials, indirect labor and utililties for the increase in production of the
business.

1.2 Market Aspect

Known for its major crops like palay, corn, banana and pineapple,
SOCCSKSARGEN Region ranked second in pineapple and corn production,
third in banana production, and fifth in palay production. These natural resources
are processed into products like snack foods which are sold in the market.

The proposed project is currently offering snacks specifically chips made

from taro and banana, flavored with original, cheese, sour cream, barbeque and
sea salt. It will use machinery and equipment to increase the production process.
The target market of the business is the selected retailers in General Santos City.
Its market share is 19% throughout the years. Moreover, the business will still
use the competition based pricing strategy. Product prices are lower than its
competitors by Php10.00 per piece. The business’ products prices will be
charged per piece to its customers on cash and consignment.
For the location, the place of the enterprise is in Prk. Mapailubon, San
Isidro General Santos City. A social media page will be created to promote and
persuade the customers to avail the products offered. Furthermore, the strategy
of the proposed project is based on satisfying its market for its marketing. The
revenue is projected to increase by 16% per annum.

1.3 Technical Aspect

The business will construct a concrete building which has an area of 78m2.
It will offer snacks specifically chips made from taro and banana. The business
will purchase its supplies from Reyes Satellite Market, LAPCO Enterprises and
MAPI Enterprises.

To come up in the finish product, certain process will be undergone. To

increase the production, along with hiring 5 workers, the business will acquire
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machineries which are the peeling, slicing, flavouring and de-oiling machines.
The machines have 20 kilogram capacity per hour. The capacity utilization rate of
the business is assumed at 70%during lean season (April-May) and increases to
80% during peak season (June-March).
The business’ utilities expense will be on LPG, electricity and water. It is
estimated to utilize those mentioned amounting to Php 6,319.99 monthly. Lastly,
the waste to be generated by the business will be segregated as to
biodegradable and non-biodegradable.

1.4 Management Aspect

The business will be managed by Mrs. Dolores C. Palma, the owner, at

San Isidro General Santos City.It will have 5 personnel composed of cook,
delivery man and packers.
Dolores Food Products is a registered business in the Department of
Trade and Industry. It aims to provide livelihood to unemployed women
specifically to housewives near the production area.

1.5 Financial Aspect

The initial P439,134.99 fund will be used by the owner for the construction
of the building, machinery and equipment and the working capital. The
P397,434.99 will be loaned from financial institution while the P41,700.00 is from
the initial investment of the owner during the stage of financing. In the Financial
Statement Analysis which gives an understanding of the financial health of the
company and enables it to a more effective decision making, the fixed asset
turnover ratio, net profit margin, debt to asset ratio, debt to equity ratio, and
return on investment shows a favourable outcome. The computation shows a
result of 0.30 years or 3.6 months which means that the project investment cost
will be recovered during this period.

1.6 Social Benefits and Desirability

Dolores Food Products will provide employment opportunity whereas it will

provide even a little movement in the Philippine economic growth. The business
will also contribute to the number of tourist where it will provide appreciation from
the products offered by small enterprise here in General Santos City. It is the
owner’s desire to help other people and to provide job.