PROPOSED RESEARCH GUIDE FOR UNDERGRADUATE

FEASIBILITY STUDY

Prepared by:

PROF JENNELYN G MERCADO

PROF MARICEL V MANIAOL

MRS ELSA MIA MADRIAGA

Important Reminders:
Font Style: Arial
Font Size: 12
Required Bondpaper: 8 ½ X 11 inch ( substance 20 )
Line Spacing: Double Space
Margin : 1.5 inch left, then 1.0 inch on top, bottom and right

 There must be a watermark of the business logo on every page of the feasibility study.
 Use pie graphs or table charts and pictures in the discussion of technical and marketing study.
 Presentation of schedules should be in closed table.
 Brief discussion after each schedule must be done.
 Resizing of tables and figures may be done to avoid cutting it.
 Schedule number may vary depending on the nature of business.
 Chapter I

BACKGROUND OF THE STUDY

This chapter discusses the topic in a macro level, telling something about the purpose of establishing the
business as well as the presentation of the problem focusing on the different aspects of the study. Brief
discussion on Technical, marketing, financial, management, legal and socio economic study. An illustration of the
paradigm of the study showing the contents of each aspect of the feasibility study. More so, defining the scope of
the business, location and others covering the entire feasibility study. Brief description on the various
significances of the study given and defining the terms or words for better comprehension of the contents of the
study.

Introduction ( see sample below)

Background of the Study

Statement of the Problem

Conceptual Framework
Framework of the Study

Scope and Limitation of the study

Significance of the Study

Definition of Terms
 Chapter 2

MANAGEMENT STUDY

This chapter tackles about the entire organizational arrangement of the business. The management
aspects, suggests a clear and precise identification of duties and responsibilities , flow of authority and
manpower level requirement. This contains the organizational chart and the qualifications of the people
involved the formation of the business organization, structure. It must be set up aimed at optimum
effectiveness. To attain this, management must be able to plan all activities , for the company to become
dynamic and competitive business over and done with human resource, financial capability and new
technologies.

Form of Ownership – state n form of ownership whether sole proprietorship, partnership or corporation.

Organizational Structure

Job Analysis ( Per Position)

Company Policies

Management Policies

Call on Duty
 Chapter 3

TECHNICAL STUDY

This study discusses about the process of production and the activities of the business. It states also the
machineries and equipment used in production and other aspect regarding bringing the raw materials into
finished products ready for trade. Plant layout, size and structures are all presented for the purpose of
identifying the business operation. Also product specifications, the processes using the flow chart. The list of
machinery , tools and equipment are enumerated with the corresponding cost, raw materials and plant fund
sources are also cited.

General Business Condition

Production Process ( this should be supported with pictures labelled as Figure 1… List of ingredients and the step-
by-step procedures in the production of product)

Workflow of the Process – see

sample
Product Description – each product item should be
described briefly supported with pictures.

Materials and Equipment – this should have pictures

and discussion on how it is being used in the
production,business

Waste and waste Disposal – state the shelf life of the product as well as its proper disposal.

Plant Location - provide a map of the locale of the

business. ( see attached sample )

Plant Layout – provide a floor plan, perspective view, and

interior design of the building ,see attached sample

Chapter 4
 MARKETING STUDY

This chapter will help to know the marketing aspect of the business. The marketing aspects will cover the
following, general business condition, tabulation of results, Target Market, Demand, Product, Promotion,
Marketing strategy, Pricing Strategy, Promotion and Packaging.

Description and Outlook of the Industry

Size of the Industry- state the population of the locale,

statistics of competitors.

Target Market- include demographic, psychographic

and geographic factors

Market Segmentation- this is based on target market.

Demand Study – this is based on the survey conducted, the

Result must be presented using tables, graphs
and pie charts.
Marketing and Sales Activities- discuss the marketing strategies to
be used including promotional ads to be applied.

Detailed Product – a detailed description of the product/service that

the business offer as well as the health benefits that customers may
get.

Competition – Identify competitors of the business and how to deal

with it.

The product –

Packaging- brief description of the packaging of the product, the materials used in
Marketing Strategy – discuss the strategies to be used in the distribution of the products/services, the advertising
and promotional activities of the business.

Chapter 5

FINANCIAL STUDY

This chapter discusses the financial aspects of the study in order for a business plan to understand it
needs money to start. To determine whether the future industry will remain profitable through the existence of
competitors and unfavorable economic condition, the researchers have to project a five year financial statement.

This chapter includes the source of funds, Balance sheet, income statement, cost of goods sold, and cost
of sales.

Financial Assumptions

 May include but not limited to the following…

a. Selling price of the product or service
b. Sales demand increases 10% per year
c. Raw Materials increases 5% per year
d. Depreciation expense is computed in a straight
line basis with an estimated life of 3 yrs
e. 50% of net income will be distributed after 3
years.

Initial Capital Requirements

Total Project Cost ( Schedule _) ( includes any of the following, Leasehold improvements, Facilities, Equipment,
Furniture and Fixtures, Operating Expenses which is assumed to be 2% increase on repair and maintenance and
the like, Consumables and office supplies should be good for 6 mos depending on the nature of the business,
other expenses such as rent, salaries and other mandatory contributions should be in 1 year projections.

Schedule 1
Veggie Bread
Proposed Total Project Cost
Particulars Amount

TOTAL

Permit, Fees and Licenses ( includes municipal, brgy, SEC, BIR,LTO/LTFRB if applicable make sure to get the latest
fees and charges)

Schedule __
Veggie Bread
Permit, Fees and Licenses
Particulars Amount

TOTAL

Leasehold Improvements ( applicable only to businesses that will undergo renovation and or improvements of
store area, production area/office)

Schedule __
Veggie Bread
Leasehold Improvements
Particulars Amount

TOTAL

Cost and Expense Schedule

Rent Expense

Salaries and Wages

Employees salary and other mandatory

contributions

Schedule __ Employees Salary and other Mandatory Contributions

SSS
Daily Monthly Total
Position EE EC Total Pagibig PHC Net Pay
Rate Salary Deductions

Employers SSS, Philhealth and Pag-ibig Contributions

Schedule __ Employers SSS, Philhealth and Pag-ibig Contributions

SSS
Total
Position ER EC Total PHC Pagibig
Contributions
 TOTAL

Office Supplies

Packaging

Transportation Cost

Promotional Expense

Office Furniture and Fixtures

Equipment

Depreciation Expense

Statement of Cost of Goods Sold

Projected Demand and Sales for 3 years

Projected Cost for 3 years

Cost Schedule per product

Projected Income Statement (for 3 years)

Projected Balance Sheet ( for 3 years )

Projected Statement of Cash Flows ( for 3 years )

Financial ratios ( projection for 3

years )
Schedule on Profit Distribution

Schedule __ Profit Distribution

Year Jose Manalo Liza Di Malanta Juan Maulan TOTAL
2016
2017
2018

Chapter 6

SOCIO-ECONOMIC STUDY

This chapter includes the socio-economic benefits of the proposed project. The specific contributions to
the economy and to the government.

Chapter 7

CONCLUSIONS AND RECOMMENDATIONS

This chapter discusses the perceived risk to be encountered by the business, the suggested solutions , the
conclusions of the study and recommendations.

Perceived Risk

Suggested Solutions

Conclusions

Recommendations
LIST OF APPENDICES

A. Various letters
B. Survey Questionnaire
C. Sample forms of legal requirements
D. Constitution and by-laws
E. Certificate of Reproduction
F. Others