Chapter 5

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION

Summary of Findings

The result of the study proves that the business is feasible and viable, the proposed

business has shown possibility of operating the business venture. This study focuses on the

determination of the viability and feasibility of establishing a proposed business named, “MAC

ILAVA” a laundry shop to be established in AMCM compound, Pasay city with total

consideration of marketing, technical, organization, management and financial aspects. Below

are the findings and results of the study:

The data needed by the researchers where gathered from primary data which are gathered

through interviews, questionnaires and observations. Also, use of secondary data that are

obtained from printed materials and online sources where considered. In this study, exploratory

and descriptive method was used and convenience sampling technique was used for considering

the population. After gathering all the necessary information, data were analyzed by using

profitability and liquidity ratios, test of operating leverage, test of return on capital investment

and capital budgeting formulas.

Marketing. The business offered laundry service to the students, faculty and interns

residing in MAC, by establishing a laundry shop in AMCM. The researchers prove that there is a

market for the proposed product because after distributing the survey question, a total of (X)% of

respondent which (X) out of (X) indicated that they will patronize the proposed shop. It has also

been deduced that there would be an increase in the number of demands for the laundry service

for the incoming years. (?) The unsatisfied demand has an average of ₱14,197,392.00 from 2017
through 2021. Based on the result of the research, the average annual demand and supply for the

first year of operation will be ₱20,570,112.00 and ₱6,886,262.32 respectively. The business

capacity has an average of ₱8,365,446.77 giving the firman average of 59.07% market share.

Technical. The researchers chose to the girl’s dorm 1st floor as the location of the

business since it is very near to its market. The building has one floor which is renovated to fit

the operation of the business. the proposed business won’t pay rent since it would be covered by

the MAC institution. The laundry machines would be purchased from X manufacturer, to

provide further guidance in the utilization of the machines.

Organizational and Human Resource. The proposed business will be a sole

proprietorship. There would be 3 employees which are the manager, cashier and the janitor

which would have a competitive salary including the required benefits under the law plus

allowances.

Strategic Management. The mission of the proposed business is to provide a nutritious

and healthy vegetarian seasoning to the resellers that will contribute to the health of the

consumers. The company envisions to be the top business in providing vegetarian seasoning in

Silang, Cavite, by 2021. Therefore, it has created and developed a cohesive set of objectives,

key result areas and performance indicators that will eventually meet its expectations.

Financial. Based on the capital budgeting techniques and financial analysis tools used,

the business is proven to be financially acceptable for its profitability, liquidity and stability.

The proposed business will need ₱(?) as starting capital to operate which is to be financed by

Mrs. (?). Based on the major assumption and financial projection, the researchers are able to

find out that the business would earn profit. The proposed business has chance to expand which

would offer a great market possibility. The income statement shows its profitability. The net
income of the first year of operation would be ₱(?). The analysis of data results to 0.22 ratio for

return of sales, 0.45 gross profit ratio, 10.95 liquidity ratio, 3.79 quick ratio, 32.85 DSO and 2.9

year payback period. All the findings are acceptable.

Socio-Economic Responsibility. Because the proposed business is feasible based on the

study, the researchers believe that the society and economy would benefit from this business.

This could provide work for unemployed people and add additional income for the family. This

would also help increase government income through taxes.

Conclusion

According to researcher’s research, the marketing study shows that the business has

market share. The production and operations assures that the proposed business has capacity to

meet the demand of the target market. The organizational and human resource study shows the

effective plan for the working force. The financial study shows that the business is profitable

and net income is expected to increase annually. Also, the business has the capability to

contribute in the society. The whole study with support of the fulfillment of the specific

objectives of this study, the researchers therefore conclude that the establishment of the “Yum –

Yum manufacturing business” is feasible and viable.

Recommendation

The researchers recommend to the prospective investor that the proposed business will

be put into realization in 2017.