A FEASIBILITY STUDY ON

ATSALAN NI MANG JUAN

AT AURORA ZAMBOANGA DEL SUR

A PROJECT FEASIBILITY STUDY

Presented To
The Faculty of Business Administration Department
AURORA PIONEERS MEMORIAL COLLEGE
Aurora, Zamboanga Del Sur

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Business Administration
Major in
Marketing Management/ Human Resource Development Management

Presented by:
Janine S. Barbajo
Airies G. Dolero
Lyne A. Javier
Fritz Jaya B. Luspo
Mikhaila S. Saysip

i
 APPROVAL SHEET

In partial fulfillment of the requirements for the course Bachelor of Science in

Business Administration, Major in Marketing Management/Human Resource
Development Management, this study entitled: “ATSALAN NI MANG JUAN” has
been prepared and submitted by these following students:

Janine S. Barbajo
Airies G. Dolero
Lyne A. Javier
Fritz Jaya B. Luspo
Mikhaila S. Saysip

Whose grade for the paper is

NESTOR ENGLIS LONGAKIT, MBA, LLB Units

Project Study Moderator
Accepted in partial fulfillment of the requirements for the Degree of Bachelor
of Science in Business Administration, Major in Marketing Management/ Human
Resource Development Management.
MARY ANN LOYOLA LONGAKIT, MBA
Dean of College Business Administration

Member Member Member

Member Member

ii
 Acknowledgement

This Feasibility Study will never be possible without the shared ideas and
effort of different individuals. We would like to take this opportunity to express our
deepest thanks and gratitude to the following people who willingly help and shared
their efforts and ideas.
To our Almighty God for the knowledge and grace extended to the researches
in the realization of this humble work.
To our family who supported us in everything: May it be financially, morally,
emotionally and spiritually.
To our adviser, Mr. Nestor Longakit, for being so kind, patient and
understanding in mentoring and sharing his expertise to us.
To our friends and classmates for the encouragement that made us stronger
especially in the times that we are at the verge of giving up.
And to all the people with kind spirits who prayed for our success; our greatest
thanks.

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Table of Contents
 INTRODUCTION

Bell pepper (capsicum annum) also known as “sweet pepper” “KAMPANA OR

LARA’’ is grown for its fruits. Which usually comes in various colors such as red,
green, yellow, brown and orange. Bell pepper is a good source of vitamin A, C and
potassium. It is consumed fresh, dried or processed.

Bell pepper is one of the basic commodities of every household.

It is usually sold or displayed on market and grocery stores. In our area sources of
bell pepper has come from distance usually from different towns such as Cagayan
De Oro.

This reason opens opportunity for us to engage into a business that will meet
the growing demand of bell pepper in our area and nearby places.
Bell pepper production will help the vendors and the retailers to have their supply
delivered to them without time consuming, less hassle as well as less expense.

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 1.1. Executive Summary

1.2. Highlights

1.1.1. Project Background

Name of the Project: ATSALAN NI MANG JUAN
Type of Business: General Partnership
Location of Business: Libertad, Aurora, Zamboanga del Sur
Proponents: Barbajo, Janine S.
Dolero, Airies G.
Javier, Lyne A.
Luspo, Fritz Jaya B.
Saysip, Mikhaila S.

1.1.2. Management and Personnel Feasibility

The operation of proposed business, a total of 12 personnel with the

accurate skills will be needed: 1 Manager, 1 Driver, 1 Truck Man, 2 Machine
Operators, 5 Caretakers/Maintenance, 1 Bookkeeper, 1 Cashier.

These personnel are knowledgeable enough in performing their task

and are responsible with the position/areas they are handling.

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 1.1.3 Market Feasibility
The bell pepper production is a business that cares about the welfare of the
vendors, to lessen the efforts time consuming just to buy and look for the supplies.
As well as to lessen the expenses they are going to spend.
For Municipality to be known not only just for its existing products but as well
as for producing goods that is helpful not only on the part of the entrepreneurs but
also for the small business operators.

1.1.4 Production Feasibility

Atsalan ni Mang Juan is a bell pepper plantation. That supplies the demand of
retailers and wholesalers as well brokers. For the first quarter of the operation we will
occupy the 3 hectares land by planting bell pepper in “tudling” or spacing. For 1.5
hectares, we need not less than 2 cans of bell pepper.
Harvesting will be done 2 months after planting bell pepper. We scheduled to
harvest bell pepper twice a week and directly deliver to the market. Driver’s task is to
deliver product directly to the brokers as well to the retailers. In the first year of
operation, we will be starting pottering to cover up future needs for supply to reach
the demand of the market.

1.1.5 Financing and Financial Feasibility

The total cost of the project is One Million Five Hundred Fifty Thousand Pesos
(P1,550,000.00). Each proponent shall invest Two Hundred Fifty Thousand Pesos
(P250,000.00) and the remaining cost Three Hundred Thousand (P300,000.00) will
be borrowed from 1st Valley Bank, Aurora Branch with an annual interest of 14% per
annum. This will be payable for 5 years as annually. We will use the Land Title as a
collateral.

1.1.6 Socio-economic Feasibility

 Opportunities to farmers to share their knowledge in planting bell

peppers.
 Encourage retailers to pursue selling bell peppers without having
bigger capital to purchase it from brokers.
 Benefits to the local government by paying taxes.

3
1.2. Conclusions to Feasibility
Based on the interview that we have conducted this business is feasible. The
product will create good outcome to the market for the vendors to be able to produce
bell pepper without relying to the brokers. They shall create opportunities to those
who are not employed.

2.0. Project Background and History

2.1. Project Proponents

Name Nationality Address Ownership/Investment

Barbajo, Filipino Cabilinan, P 100,000

Janine S. AZDS

Dolero, Filipino Lapaz, AZDS P 100,000

Airies G.

Javier, Filipino Anonang, P 100,000

Lyne A. AZDS

Luspo, Filipino Maranding, P 100,000

Fritz Jaya Lala LDN
B.

Saysip, Filipino Anonang, P 100,000

Mikhaila S. AZDS

2.2. Proposed name of the Project

ATSALAN NI MANG JUAN is a business that produces bell pepper to vendors

and brokers. The name ATSALAN NI MANG JUAN is derived for being pure Filipino.
“MANG JUAN” is considered as trade name of Pinoy.

2.3. Type of Business Organization

The project is a general partnership. It will be own and manage by the
partners who shall contribute equally as part of their investment for the business
capital.
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2.4. Location of the Business
The location of the business shall be in Libertad, Aurora, Zamboanga del Sur.

3.0. Management and Personnel Feasibility

3.1. Personnel
For the operation of this business a total of 12 personnel is needed:
These employed personnel should be knowledgeable enough when it comes
to their tasks and responsibilities. To ensure this, they should have the experience
and skills to perform their task. They shall be effective and efficient in performing
their duties.
Employees shall come from the Municipality of Aurora; for we know that
people coming from this Municipality has a lot of skilled farmers with exact
knowledge. They should be appropriate with their performing duties. Each of them
should be given compensation based on their assignment or position. In addition, all
employees would be given benefits such as SSS and Philhealth.

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 3.1.1. Organizational Chart

Manager

Cashier Bookkeeper

Machine Operator 1 Machine Operator 2

Operatodar safs2 r 22

Driver Caretaker/ Caretaker/

Maintenance 2 Maintenance 4

Caretaker/ Caretaker/ Caretaker/

Truck Man
Maintenance 1 Maintenance 3 Maintenance 5

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 3.1.2. Personnel Job Requirements
Manager
 College Graduate (preferable with a business-related degree)
 Female with pleasing personality
 Having appropriate knowledge in managing business
 Hard working and dedicated
 Responsible for the welfare and concern for the employee
Cashier
 Male/Female not more than 30 years old
 At least high school graduate with moral character
Bookkeeper
 Graduate of BS Accountancy or any business-related courses
 Male/Female not more than 30 years old
 Reliable and with moral character
 Trustworthy and committed to work
Machine Operator
 Male not more than 30 years old
 Knowledgeable in operating machine
 Must be physically fit and hardworking
Caretaker/Maintenance
 Male not more than 30 years old
 Has background in farming
 Physically fit and hardworking
 Trustworthy
Driver
 Male more than 30 years old
 At least 3 years of experience of driving heavy equipment
 Must be a holder of driver’s license
 Must be physically fit and hardworking
Truck Man
 Male not more than 30 years old
 Physically fit and hardworking
 Knows how to drive

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 3.1.3. Personnel’s Responsibilities and Functions
Manager
 Shall supervise the entire operation of the business
 Shall receive and pay out money
 Responsible for the welfare of its employee’s and business
Cashier
 Responsible for cash
 Monitoring on cash related goods
Book keeper
 Monitor production supplies and inform manager/FO if necessary
 Remind manager/FO, for any debts as it comes due for payment
 Record any cash receipt and all kinds of transactions
 Issue financial statements
 Responsible in keeping time and any other relevant records
 Responsible for computation of annual budget
Machine Operators
 Responsible for machine related operation
 Machine maintenance
Caretakers/Maintenance
 Farming related activities
 Look after the maintenance of the plants
 Spread fertilizers to plants if necessary
Driver
 Shall distribute the products directly to our consignees
 Moves freight, stocks or other goods to and from storage or production area
 Responsible for the maintenance of service vehicle
 Assist any employees in travel activities
Truck Man
 Assist the driver in any travelling activities

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 3.1.4. Personnel’s Proposed Salary Rates
Personnel No. Monthly Rate
Manager 1 P 15,000
Cashier 1 P 10,000
Bookkeeper 1 P 10,000
Machine Operators 2 P 12,000
Caretakers/Maintenance 5 P 30,000
Driver 1 P 5,000
Truck Man 1 P 4,500
Total 12 P 86,500

3.2. Management Proposals

3.2.1. Management Style
Our management style’s central thought is the creation of a functional and
effective team, cohesive work environment where employees feel affiliated,
independent, and comfortable while sticking to the proper quality and control of the
needs of the organization. The typical features of this management style are:
 No specialized careers
 They will be given individual responsibilities
 Concern for the employees
 Equal treatment (without minding their position)
 Consensus in decision-making.

3.2.2. General Policies

 All employees must be on time on their job.
 Drinking liquor in the premises is strictly prohibited.
 Log in log out their daily time record is strictly imposed.
 The worker must be responsible to their duties.
 He/she must have the practical knowledge regarding their task.
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3.3. System and form Design
3.3.1. Project’s Flow of Personnel Operating Procedures

Screening Interview Background Check

Legal Requirements Physical Hiring

Examination

Screening
 It is the first procedure in any program.
 The entire resume submitted by aspiring applicants shall be scanned.
 Candidates shall be selected based on their background and personal
information.
Interview
 All the applicants initially screened deemed fit for job shall be called for an
interview.
 All the information written in the resume shall be confirmed by asking the
applicants question.
Background check
 To know the applicants is a good citizen with no criminal case.

Legal Requirements
 Applicants must secure all necessary documents needed by the business
establishment.

Physical and mental examination

 To determined that the applicant is in good mental and physical health.
Hiring
 The applicant who passed all the screening procedures shall be hired by the
management.
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4.0. Marketing Feasibility
4.1. Market Description
Target market involves 4 Municipalities, 1 Barangay and 1 City. The total
brokers are not less than 10. As to the pricing it will be base to its variety.

Target Market No. of brokers No. of kilos (per week)

Pagadian 3 250
Molave 2 150
Tukuran 1 80
Maranding 2 120
Kapatagan 2 100
Aurora 2 100

4.1.1. Demand
Target Market No. of No. of kilos Monthly Year
Brokers (per week)
Pagadian 3 250 1,000.00 12,000.00

Molave 2 150 600.00 7,200.00

Tukuran 1 80 320.00 3,840.00

Maranding 2 120 480.00 5,760.00

Kapatagan 2 100 400.00 4,800.00

Aurora 2 100 400.00 4,800.00

Total 12 800.0 3,200.0 38,400.0

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4.1.2 Supply

4.1.3 Demand-Supply Analysis

Demand-Supply
Year Demand (D) Supply (s) (Gap) % Unsatisfied
1 38,400 19,200 19,200 50%
2 38,400 20,160 18,240 48%
3 38,400 21,168 17,232 45%
4 38,400 22,226 16,174 42%
5 38,400 23,338 15,062 39%
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4.2. General Marketing Practices

4.2.1. Current Market Conditions

The current conditions of our target market are not having heavy competitor yet.
Because our considered competitors are brokers and wholesalers.

4.2.2. Competitors Marketing Strategy

Our competitors marketing strategy is to buy products in bulk. Rely only to
the supply produce by farmers and different areas such as: Cagayan de Oro.

4.2.3. Marketing Strategy

 To generate the retailers to purchase bell pepper in a bulk without depending
to the brokers.
 To share the benefits of distributors having bigger profit to the retailers.
 To ensure that the product will surely cope the needs of bell pepper on
market.

4.2.4. Pricing Strategy

The price will be based on the texture and quality of the bell pepper and to its
size also. Price will matter also as to it season of demand.

4.2.5. Competitive Edge

 Our facilities and production area are well organized.
 Same as through with our personnel and management.
 Our employees are will mannered and knowledgeable enough in their
perspective areas.
 Our location is accessible to the public market.

4.3. Proposed Marketing Program

Target market involves 4 Municipalities, 1 Barangay and 1 City. The total
brokers are not less than 10. As to the pricing it will be base to its variety.
 13
5.0. Production Feasibility

5.1. The Product

Bell peppers (Capsicum annum) are the fruits of certain plants from the
nightshade family. They are related to chili peppers, tomatoes, and breadfruit. Also,
sweet peppers or capsicum, bell pepper is eaten as vegetable, either raw or cooked.

5.2. Production Process

 Using natural soil, plant 1 seed for each hole covered by a banana leaf or
“unas”.
 After 18-21 days, we can transfer the plant to ground.
 Put 100 grams of fertilizer for every dig that has75 cm of space apart from
each other.
 After 30 days, we can now fertilizer.
 After another 30 days, re-apply the fertilizer with more potassium.
 Fertilizers should be applying once a week to avoid any defects to plant.
 When harvesting bell peppers harvest it after 70 days for red bell peppers.
(first harvest)
 Bell peppers can be harvest 2 times a week. (follow-up harvest)
 Bell peppers can be harvest up to 15 times depending on how to maintain the
quality of the plant.
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5.3. Production Site

Our plantation shall be located at Libertad, Aurora Zamboanga del Sur.

Land Prep.
15
 16
Transplant
 17
5.4. Production Layout

PLANTATION

WAY TO ENTRANCE AND EXIT

CR

STORAGE AREA
RECEIVING AREA
REV

CR

OFFICE
WAREHOUSE
 18
5.5. Production Schedule

Employees Mon. Tue. Wed. Thu. Fri. Sat. Sun.

Manager       Day-
off
Cashier       Day-
off
Bookkeeper       Day-
off
Machine Operator 1       Day-
off
Machine Operator 2       Day-
off
Caretaker/Maintenanc       Day-
e1 off
Caretaker/Maintenanc       Day-
e2 off
Caretaker/Maintenanc       Day-
e3 off
Caretaker/Maintenanc       Day-
e4 off
Caretaker/Maintenanc       Day-
e5 off
Driver       Day-
off
Truck man       Day-
off
 19
5.6. Machineries and Equipment
Name: Roto tiller

Functions: Weeding or digging a garden. Helps in pulverizing the soil.

Availability: Machinery available at Molave, Zamboanga del Sur.
 20
Name: Rototiller Machine

Functions: Use in maneuvering the Rototiller

Availability: Machinery available at Molave, Zamboanga del Sur.

Name: Shovel
Function: Use for lifting and throwing soil
Availability: Molave, Zambo. Sur

21

Name: Rake
Function: Smoothing the surface of the soil
Availability: Molave, Zambo. Sur

Name: Bolo
Function: Use in cleaning the growing grass near the plants.
Availability: Molave, Zambo. Sur
22
FERTILIZERS/CHEMICALS

23
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5.7 Schedule for Utilities
Utilities Monthly Year 1 Year 2 Year 3 Year 4 Year 5
Electricity 5,000 60,000 61,200 62,424 63,672 64,946
Water 4,000 48,000 48,960 49,939 50,938 51,957
Internet 1,000 12,000 12,240 12,485 12,734 12,989
Total 10,000 120,000 122,400 124,848 127,345 129,892

5.8. Raw Materials Requirement

5.9. Manpower Requirements

Position No. Basic Salary Benefits
 Manager 1 P15,000 SSS, Pag-ibig,
PhilHealth
Cashier 1 P10,000 SSS, Pag-ibig,
PhilHealth
Bookkeeper 1 P10,000 SSS, Pag-ibig,
PhilHealth
Machine Operator 2 P12,000 SSS, Pag-ibig,
PhilHealth
Caretaker/Maintenanc 5 P30,000 SSS, Pag-ibig,
e PhilHealth
Driver 1 P5,000 SSS, Pag-ibig,
PhilHealth
Truck Man 1 P4,500 SSS, Pag-ibig,
PhilHealth

6.0. Financing Feasibility

6.1. Total Project Cost
 6.1.1. Acquisition of Materials

6.1.2. Annual Purchases

6.1.3. Projected Repair and Maintenance
 6.1.4. Projected Annual Salary
6.1.5. Pag-ibig,
6.2. Financiers
6.2.1. Sources of Capital
6.2.2. Terms and Conditions of Creditors
6.2.3 Amortization Schedule
7.0. Financial Feasibility
7.1. Major Assumption Used
7.2. Income Statement
7.3. Cash Flow
7.4. Balance Sheet Projected
7.5. Depreciation Table
7.6. Financial Ratio

8.0. Socio-Economic Feasibility

8.1. Project Employees
8.2. The Government
8.3. Other Beneficiaries
9.0. Project Implementation and Time Table
10.0. Conclusion
Terminologies
Bibliography
Pictures
Curriculum Vitae