PARTS OF THE FEASIBILITY STUDY

1. SWOT ANALYSIS

The strengths, weaknesses, opportunities and threats of the _____________

were evaluated and presented below:

Table__. INTERNAL ORGANIZATION: STRENGHTS AND WEAKNESSES OF

THE ____

Strengths Weaknesses
 Uniqueness of our product will stand  New product in the industry,
out among other businesses because customers may not
of its unique alternative way for appreciate or like it since it’s
cravings and offers a high-quality and a new product.
great taste in a distinctive  Product the business owners
atmosphere at a very reasonable are not yet well-equipped in
price. running a business.
 Our product itself since it’s a 
combination of Asian and Vigan food
that will surely be interested in tryinh
out our product.
 Staffs or friendly sellers to give the
best service and not just the product
as it is that we can offer.


Table__. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS

OF THE _____

Opportunities Threats
 New generations of consumers appreciates  Competition could
the new way of packaging. develop expensive
 Discovery can lead us to higher and bigger and new marketing
plans to establish and expand our newly campaigns.
made products.  Huge fluctuations in
 Since it’s a trendy food, those who are prices of supplies
addicted to Korea or simply those who are may occur.
food lovers will surely attracted and
appreciate this new product.
 New products are services that can be
 retailed in other businesses establishments,

Chapter __
MARKETING ASPECT

(Discuss the nature of the unsatisfied demand which the project seeks to meet, its
growth and the manner in which it is to be met. Here, the supply-demand situation is
examined, the target markets analyzed, and the marketing program formulated.)

1. Product Description

Name of the product/s (and reasons for choosing it)

- EmpanaDumplings is a variety of dumpling wherein the Vigan Empanada
filling will be wrapped in a dumpling dough. Along with this unique product
of us will be the availability of other Filipino food and beverages such as
lumplia, shanghai, iced tea and palamig. We choose this product because
in this time of Pandemic we prioritize to our buy needs over our wants.
This will surely give our customers a vibe of the different Asians countries
while having a taste of the Authentic Vigan Empanada. This is a food
stall and we think this is in demand because all Filipino’s loves to eat
“meryenda thing” so that we offer this kind and unique product

Properties of the products (physical and chemical)

- Dumplings can be steamed, boiled, or fried. Dumpling’s filling is made up of
either ground pork, chicken or fish, beaten egg, garlic, ginger, sesame oil and soy
sauce.
- Our food cart stall size is 2x2 it is like a tent house that fits to us and for
our product and the color of our food stall is black and red. Our
equipments are catering tables and chairs ,cleaning equipment, and of
course we have hand-washing area for those who wants to eat in finger.

Uses of the product (as a finished commodity, as an input to other

production activities)
- I know we Filipinos loves to eat “meryenda “ If you’re hungry you can go
with us to buy our product and we will serve to you the best and healthy
snack.

Major users/ customers of the product (individuals and/or firms - who and
where are the market)
- Our major users/costumers was students but our product is good for
everyone because our product is snack and very healthy to everyone

2
 Geographical areas of dispersion (where the product is mostly found)
- Our food cart stall is mostly found in Vigan. Near Public Market.

Comparison of the product to its competitors

2. Total Demand (The size, nature and growth of total demand for the product
must be determined)

Table no. _____.Demand

Year Past Domestic Past Foreign Total Past
Demand Demand Demand
2017
2018
2019
2020
2021
Future Domestic Future Foreign Total Projected
Demand Demand Demand
2022
2023
2024

3. Supply (direct competitors)

Table no. _____.Supply

Year Past Domestic Past Foreign Total Past Supply
Supply Supply
2016
2017
2018
2019
2020
Future Domestic Future Foreign Total Projected
Supply Supply Supply
2021
2022
2023
2024

4. Demand / Supply Analysis (Compare trends, unsatisfied demand, etc)

3
 Projected Demand Projected Supply Demand /Supply
Difference
2021
2022
2023
2024

5. Projected Share of the Market (proposed production volume)

Year Projected Market Projected Demand/Supply Proposed
Share difference Production (Sales)
Volume**
202
1
202
2
202
3
202
4
**Projected market share multiplied by the Difference equals Proposed Sales
Volume

6. Price Study
Product/s Selling Prices of competitors Competitors’
price Competitor Competitor Competitor average
1 2 3 price

7. Definition of Target Market (Size of target market analysis)

Table ___. TARGET MARKET

Product Existing market Target market Location/dispersal

8. Factors Affecting the Market (a.) Demand may be affected by population,

income changes, tastes, rural/urban development, substitute products and
marketing tools; b.) supply influenced by development of substitute products,
entry/exit of firms, etc; and

4
 9. Marketing Program

a. Product Conceptualization/Development
The market, customers, and the general public will never stop expecting
something fresh, something that follows current trends, something that
has been tested against a set of quality standards, and something that is
reasonably priced.
Dumplings are an Asian dish that many Filipinos enjoy, despite the fact
that it originates from another country. A dumpling is a delicious bite-size
dish comprised of savory ingredients wrapped in dough and
baked. Emapanada dumplings is made of cabbage, eggs, longganisa,
spices, and dumpling dough.

b. Promotion

Outbound Marketing. This strategy requires the business owners as well

as the employees to pursue customers who may be interested in what
the business has to offer. In this strategy, direct mail campaigns like
postcards, print ads, flyers and brochures will be distributed to the
possible customers so that they will be attracted or even encouraged to
patronize the said business.
- Visual Marketing Strategy. This strategy requires developing creative
visual content to reach audiences at a personal level. The business
believes that, it is a great way to attract customers, because people
nowadays can really appreciate powerful graphics that builds their
interest and curiosity. These can be posted to different social media and
social bookmarking sites as a way for further exposure.

c. Distribution Program

We will introduce our high-quality Empanada Dumplings in vigan city with a

reasonably price for our customers.

d. Pricing Strategy

- For every set of dumplings made with the allotted budget of PHP 340.00, a
maximum of 100 pieces is expected to be produced. In connection to that, PHP

5
7.00/each. With the estimated price of PHP 7.00/each and an estimated number of
100 pieces to be produced, total sales of PHP 700.00 will be earned.

Table 10. PRICES OF PRODUCTS

Product Use/s Sizes Selling Price
(PhP)
EmpanaDumplin 1 Small (Bite Php 7.00
g Size)

10. Unit Cost Analysis

11. Marketing personnel

Number Positions Duties and responsibilities

12. Marketing Budget

Marketing expenses Year 1 Year 2 Year 3 Year 4
Promotion (specify)

Distribution (specify)

Advertising (specify)

Selling (specify)

Total marketing expenses

13. Marketing Personnel

Chapter __
ORGANIZATIONAL & MANAGEMENT ASPECT

(What is the management structure? Is it appropriate for the managerial needs of

the project? What is the salary scale? Is it compatible with industry standards?)

In order that the important functions of the project will properly be

implemented, the necessary personnel must be projected and identified.

6
 1. Form of Business (Corporate Structure)

2. Organizational Structure

Figure 1. ORGANIZATIONAL STRUCTURE

3. Officers and Key Personnel

Presented below are the officers and key personnel specifying their duties
and responsibilities in the operation of the project.

Table ___. OFFICERS AND PERSONNEL OF THE PROJECT

Designation Duties and Responsibilities

4. Staffing Pattern

Presented below are the manpower needs of the proposed project and their
corresponding salary rates.

MANPOWER REQUIREMENTS
Number Designation/Position Salary/month

5. Wage and Salary Administration (Payment of salaries/month; Overtime

pay; Other benefits/incentives; etc)

Pre-operating activities (Gantt Chart)

Activities Cost (amount) Timetable (months)
1 2 3 4 5 6 7 8 9 10 11 12
1.
2.
3.
4.
Total cost

Chapter _

7
 PRODUCTION ASPECT

1. The Product(s)

PRODUCTS DESCRIPTION OF PROPERTIES USES

Physical Mechanical Chemical As finished As industrial
product input

2. Production Process
a. List of Production Activities
Activities Duration Output Responsible
person

b. Process Flow Chart

3. Plant Size and Production Schedule

a. Plant/Equipment Capacity
Minimum rated Maximum rated Planned capacity Future capacity
capacity capacity

b. Daily Operation
Working Days per Year Working Hours per Shift Shifts per Day

8
 c. Projected Production Volume
Year Volume
1
2
3
4

4. Machinery and Equipment

a. List of machinery, number, specifications and purpose
Machines, Tools & Number Specifications Purpose
Fixtures

b. List of machinery, suppliers and price

Machines, Tools Suppliers Price per Unit Number of Units Total Cost Terms of
& Fixtures Purchase

Total Cost

c. Cost, Schedule of Useful Life and Depreciation Rate

Machine, Tools & Cost Useful Life Depreciation
Fixtures

d. Maintenance and Repairs Schedule

9
Machine, Tools & Maintenance/Repairs Frequency Cost
Fixtures

5. Plant Location and Layout

a. Plant Location (MAP & Charts)

b. Plant Layout (Diagrams & Descriptions)

6. Building and Facilities (Site, type, and costs of building and land; including
land improvements such as roads, drainage facilities etc. and their respective
costs)
Facilities Description Item Cost Total Cost

10
Total

7. Raw Materials and Supplies

Raw Materials Unit Price of Quantity Total Cost Source Remarks
& Supplies Materials Needed

A. Direct
Materials

B. Indirect
Materials

Total Materials Cost

8. Utilities/Factory Overhead
Utilities /Factory Overhead Item Source Cost

11
Total Utilities / Factory Overhead Cost per Year

9. Waste Disposal (quantity, manner and cost; as well as possibilities of further

waste usage)

10. Job Requirements

Job Title Qualifications Experience
Direct Labor

Indirect Labor

11. Labor Cost

Total Fringe
Number of Total Salary per Total Labor
Type of Labor Benefits per
Workers Month Cost per Year
Month
Direct Labor

12
Indirect Labor

Administrative

TOTAL

12. Direct Labor Cost

Production Time Direct Labor Rate Direct Labor Cost
Product
per Product Unit (Cost) per Product Unit

13. Overhead Expenses

Year
Overhead item
1 2 3 4

Total overhead /year

Overhead/product Unit

14. Production Cost

Utilities/Factory
Planned Other Direct Materials Direct labour Total Cost
Overhead
Product Productio pertinent
n Volume cost Per Per Per
Total Total Per unit Total Total
Unit Unit Unit

13
 Chapter __
FINANCIAL ASPECT

( Present the overall financial picture in terms of operating cash requirements,

profitability and cash flow)

1. Capital Requirement (Project Cost)

2. Financing Plan and Loan Requirement
3. Security for Loan
4. Four-year Projected Profit and Loss Statement
5. Four-year Projected Cash Flow Statement
6. Working Capital Requirement
7. Loan Repayment Schedule

8. Profitability Analysis

To show the financial performance of the project, the Gross Profit Rate,
Return on Investment (ROI), Net Present Value (NPV), Benefit Cost Ratio (BCR),
and Payback Period are presented as tools to indicate if the project is profitable and
viable.

The Gross Profit Rate of the project shows the efficiency of its production
operation.

The Return on Investment is an indicator of the effectiveness of the uses of

the project’s resources.

To present the net benefits of the project for a period of time in its present
value, the Net Present Value of the project stands at PhP ___. The project is
accepted since the NPV is very much positive.

As a measure of the economic feasibility based on the relationship between

its benefits and cost, the Benefit-Cost Ratio of the project is _____% discount rate
for the first five years of operation. As the BCR is greater than one, the project is
feasible.

14
 Based on the average Annual Net Cash Inflows of PhP ______ for the first
four years, the Payback Period for the project is ____ years. It means that the
investment for the project will be fully recovered in approximately ______ years and
the project will start to earn.

All the above financial analysis showed that the project is viable and feasible.

Chapter 6
SOCIO-ECONOMIC IMPACT

(What are the effects of the project on society and the economy as a whole? Is it
generally beneficial to the people? To the environment? Is it in line with the
economy’s development program?)

Sample:
1. Educational Value. The Center would bring about institutional development on
ceramics production in the University of Northern Philippines. Ceramics Production
could be integrated in the Practical Arts subject of the BSIE and Technical Education
programs. The expanded production site could serve as a laboratory for the students
to do actual ceramics production. As such, students could develop skills and interest
in this traditional craft that could encourage them to become ceramics entrepreneurs
someday. The new production building will be a showcase of the ceramics
technology capability of the university.

2. Responsiveness to the Needs of the Place. Moreover, the Center could also be
UNP’s response in fulfilling its social obligation to the civil society. With the
inscription of Historic Site of Vigan in the UNESCO’s World Heritage List, more and
more ancestral houses are now being restored. Through its research, extension and
especially the production arm, the Center could design and provide appropriate
training programs to the local artisans as well provide the construction needs of the
houses such as bricks, roof tiles and floor tiles. In this respect, UNP could be a
partner institution in ushering the province towards development.

3. Improved Quality of Life. The Ceramics Center would create more employment
for skilled and semi-skilled workers in the province or any qualified laborers in the
region with the increased production capability. The generation of employment and
increased income would eventually improve the quality of life of the people,
especially those in the near the area.

4. Improved Community Participation. The Center could be UNP’s response to

the call for increased community participation. Through the Center, the University
can further extend training programs that could benefit the people outside the
academe. Since the Center is a collaborative effort, it is expected that the people
will realize their skills and potentials in enhancing their total well-being.

15
 All these benefits are expected to be generated through the expanded
commercialization of the production aspect of the Ceramics Center at the University.

FINANCIAL ANALYSIS COMPUTATIONS

Table 17. ASSUMPTIONS OF FINANCIAL ANALYSIS

Particulars COST ANNUAL Remarks

AMOUNT
Revenues
Sales Annual Volume x
Average Selling price

Less
allowance
Total P
10% Annual sales increase
Expenses
 Salaries and Wages Rate/day X 22
days x 13 months












Total P
10% Annual increase
 Supplies and P 00
Materials
5% annual increase
 Utilities
 electricity and water /month P

16
 telephone /month P
 Gas & oil /month P
Total P
10 % annual increase
Other expenses Amount/Annum Annual
 Equipment P
Maintenance
 Warehousing P 10.0%
 Sales promotion P increase /
 Others (1% of P annum
inventory related cost)
 Promotion Expenses P
Total P
Capital Outlay
 P
 P
 P
 P
 P
 P
 P
 P
Total P
 Depreciation Cost
 P Flat rate in
10 years
 P Flat rate in
10 years
Total P

Table 18. FOUR-YEAR PROJECTED PROFIT AND LOSS STATEMENT

YEAR
Particulars
1 2 3 4
SALES

17
Less: COST OF
GOODS SOLD
GROSS PROFIT
Less: OPERATING
EXPENSES
NET INCOME:
       
1 2 3 4
Gross Profit Rate: =
Gross Profit / Sales
Net Profit Margin:
=Net Income / Sales
ROI: =Net Income /
Total Cost of
Investment

Table 19. COST OFGOODS SOLD

YEAR
Particulars
1 2 3 4
COST OFGOOD
SOLD
Materials
Direct labor
Overhead
(Utilities,Gasoline)
Depreciation –
Eguipment
Depletion - Clay
Deposit
TOTAL:

Table 20. OPERATING EXPENSES

  YEAR
OPERATING EXPENSES 1 2 3 4
Salaries
Utilities

18
Others
Depreciation
TOTAL:

Table 21. PROJECTED CASH FLOW STATEMENT

  YEAR
  1 2 3 4
Cash Balance,
Beginning
Add: Cash Receipts
Sales
TOTAL
Less: Cash
Disbursement
Cost of Good Sold
Salaries
Utilities
Others
Total Disbursement
Net Cash Inflows
Cash Balance, Ending

Table 22. WORKING CAPITAL REQUIREMENT

YEAR
1 2 3 4
COST OFGOOD SOLD
Materials
Direct labor
Overhead (Utilities
& Gasoline)
OPERATING EXPENSES
Salaries
Utilities
Others
TOTAL
First 4 Months Working Capital

Table 23. NET PRESENT VALUE

YEAR
Particulars
1 2 3 4 TOTAL

19
 Cost of Investment
Net Cash Inflows
Present Value
Factor at 15%
Present Value
Net Present Value **
* NPV = Cost of Investment - Present Value of Net Cash Inflows
** Accept the Project since the NPV is positive.

Table 24. BENEFIT-COST RATIO (BCR)

YEAR Total
Particulars
1 2 3 4
Benefit
Present Value
Factor at 18%
Present Value

COST OF GOODS
SOLD
OPERATING
EXPENSES
Total Cost
Present Value
BCR **
* BCR = Present Value of Benefits / Present Value of Cost
** Accept the Project since the BCR is more than one.

Table 25. PAYBACK PERIOD

Total Net Cash Inflows for 4 Years *Payback
Period = Total Cost of
Investment /
Average Annual Net Cash Inflows Ave. Annual
Net Cash Total Cost of Investment Inflows
Payback Period * years

Table 26. SCHEDULE OF MAJOR ACTIVITIES

ACTIVITIES Year
0 1 2 3 4 5

20
 ANNEX A: Stat Watch Region I
Regional Accounts of the Philippines
Unit: In thousand Philippine Pesos
As of April 2021

Table 1.1 Gross Regional Domestic

Product

21
Annual 2016 to 2020
At Current Prices

    2016 2017 2018 2019 2020

             
4,928,222,53 5,327,124,06 5,814,440,13 6,294,194,68 5,797,058,34
NCR National Capital Region 9 5 0 5 3
Cordillera Administrative
CAR Region 255,584,787 280,805,810 308,267,122 322,106,088 296,523,327
I Ilocos Region 490,900,560 527,801,491 587,597,251 630,300,658 597,981,618
II Cagayan Valley 323,458,416 358,686,602 385,061,271 399,370,781 367,095,722
1,640,708,33 1,860,323,67 2,062,393,87 2,184,815,14 1,862,908,07
III Central Luzon 6 1 5 3 2
2,206,254,09 2,423,069,48 2,706,994,74 2,865,792,54 2,565,124,33
IVA CALABARZON 0 0 5 7 2
  MIMAROPA Region 287,300,274 321,948,705 370,744,808 375,589,553 341,983,262
V Bicol Region 431,762,419 465,966,050 522,014,835 560,835,429 515,793,741
VI Western Visayas 720,566,797 791,281,769 860,107,768 919,163,055 850,746,746
1,067,272,67 1,180,945,76 1,270,612,31 1,164,719,19
VII Central Visayas 977,480,106 9 1 1 0
VIII Eastern Visayas 376,587,299 397,386,688 444,384,029 455,533,643 413,291,591
IX Zamboanga Peninsula 322,282,583 344,667,607 379,428,020 399,109,397 394,567,642
X Northern Mindanao 679,435,851 737,898,187 821,122,015 885,223,985 861,506,489
XI Davao Region 674,076,172 748,538,551 841,429,225 922,613,763 889,457,659
XII SOCCSKSARGEN 381,711,706 420,127,877 454,304,549 474,892,618 467,905,541
XIII Caraga 251,476,878 273,088,164 290,561,794 302,930,146 291,665,099
BARM Bangsamoro Autonomous
M Region
in Muslim Mindanao 184,572,658 210,663,685 235,393,060 254,779,370 260,254,050
   
         
  15,132,381,4 16,556,651,0 18,265,190,2 19,517,863,1 17,938,582,4
Philippines 70 83 58 72 24
             
Source: Philippine Statistics
Authority

22
ANNEX B: Average Monthly Salary in the Philippines

23
ANNEX C: Average Annual Family Income and Expenditures Survey from
2015-2018

24
25