JE MONDEJAR COMPUTER COLLEGE

Tacloban City

ABIDETTE AGRISUPPLY BASEY BRANCH

In Partial Fulfillment of the requirements in

A PROJECT FEASIBILITY STUDY

Presented to

__________________________________________

Instructor/Adviser

Prepared by:

Natividad, Benjie Yanuario, Joyce

Gobenciong, Reynaldo Almadella, Sampaguita

Ando, Floramie Yamon, Joseph

Bachelor of Science in Business Administration

1st Semester AY 2022-2023

1
 APPROVAL SHEET

In partial fulfillment of the requirements for

the degree of Bachelor of Science in Business
Administration, this Feasibility Study title “ABIDETTE
AGRI-SUPPLY BASEY BRANCH,” has been prepared and submitted
by the following students; Benjie Natividad, Reynaldo
Gobenciong, Floramie B. Ando, Joyce Yanuario, Sampaguita
Almadella and Emmanuel Joseph Yamon and has been examined
and is recommended for acceptance and approval for
oral examination.

________________________
INSTRUCTOR/ADVISER

-----------------------------------------------------------
Approved by the Examining Committee with the grade of ____.

_________________________
Dean

_____________________________________
Member

__________________________________
Member

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 ACKNOWLEDGEMENT

This feasibility study may not be possible without the

unwavering support and guidance we received from our adviser
Marifel L. Salaum, who greatly shares her knowledge to us
with patience and diligence in helping us in completing the
necessary works throughout the study. We would like to give
our appreciation to our Feasibility Study instructor for
giving us suggestions and recommendations in uplifting the
technicality of this study. Also great thanks to our
parents, for their unconditional understanding and for
sharing their wisdom that inspires us to push beyond our
limits and as well as giving their financial and moral
support even in this time of health crisis.
We want to acknowledge as well as all our respondents
who spent some time and effort in cooperating for answering
to all our queries and also to all the employees in JE
Mondejar Computer College, students and teachers, and other
people who provide some assistance and information that we
need in the study and cooperate us and share their view
about fertilizers and other products. The internet that
serves as our one of the source of ideas to complete this
project.
To all who one way or another, made this task possible,
our deepest thanks and dedications. And above all, we give
our sincerest gratitude to our ALMIGHTY GOD in securing our
safety and furnishing us the necessary resources that leads
for the accomplishment of this study.

BSBA 4-

3
 TABLE OF CONTENTS

Pages

APPROVAL SHEET …………………………………………………………………. 2

ACKNOWLEDGEMENT …………………………………………………………….. 3

EXECUTIVE SUMMARY ……………………………………………………….. 7

CHAPTER I

DECISION SUMMARY OF IDENTIFYING INFORMATION

Project Identification --------------- 10

Project Description ----------------- 12

CHAPTER II

MARKET STUDY ------------------------- 14

Project Description ------------- 14

Target Market ------------------ 14

Target Market Share ------------- 14

Market Situation --------------- 15

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 Demand ----------------------- 15

Supply --------------------------- 15

Marketing Program ---------------- 16

Objectives ------------------- 16

Marketing Strategy --------------- 16

Product Strategy ----------------- 17

Place Strategy ------------------- 17

Prices Strategy ------------------ 17

Promotional Strategies ----------- 17

CHAPTER III

MANAGEMENT STUDY ----------------------

18

Form of Business Organization ---- 18

Organizational Structure --------- 18

Labor Requirements -------------- 19

Human Resource Requirements ------ 19

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 Job Description ------------------ 22

Proposed Salary Rates ------------ 23

Pre-operating Activities ---------- 24

CHAPTED IV

SOCIO ECONOMIC STUDY ------------------- 25

CHAPTER V

TECHNICAL STUDY ------------------------ 27

Product Description --------------- 27

Equipment’s and Supplies needed at the Store

Store Layout ---------------------- 29

Store Location -------------------- 31

CHAPTER VI

FINANCIAL STUDY ------------------------ 32

Financial Assumption -------------- 32

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 EXECUTIVE SUMMARY

Philippine has been noted to be an agricultural country

for the past years and has continually encouraging the
appreciation for agricultural economy. With the global
population steadily growing, it is important that enough
crops are produced each year to provide food, clothing and
other agricultural products to people around the world.
Crops such as corn, wheat and cotton receive nutrients from
the soil they are grown in; various crops deplete soil
nutrients in different ways and rates. Some crop growth can
deplete soil nutrients after just a few seasons of planting.
Fertilizers play an important role in providing crops with
the nutrients they need to grow and be harvested
for nutritious food.

Philippines have been known to be an agricultural

country and had continually encouraging the appreciation for
agricultural economy. In 2018, the total land area used for
agricultural crop cultivation in the Philippines was around
13.5 million hectares. In Eastern Visayas, there are about
723,048 hectares agricultural land area, 22% of it is
devoted to rice cultivation or 157,632 hectares. The
region’s palay production is relatively higher during
January to June which contributes 54% to total palay output,
while the remaining 46% is produced during July-December
period.

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 Basey is a first class Municipality of Samar located
42.6 km from Tacloban City, the capital city of Eastern
Visayas. The town is known for its “Banig” industry and has
a 400 hectares Agricultural land area which provide for
cultivation, farming and coconut as their primary source of
income. During the onslaught of typhoon Yolanda, total
damage to rice production in the whole region is pegged at
34,224 MT. Basey was one of the places heavily devastated by
Super Typhoon Haiyan, leaving more than 200 people dead.
Palay farmers were much affected by the loss of their
livelihood. Today, the green fields one would see from the
sky reconstitutes recovery and rehabilitation works from the
untiring efforts of Basey farmers and LGU’s support together
with the Department of Agriculture,

ABIDETTE AGRISUPPLY is an existing wholesaler and

retailer of pesticides, herbicides and other agricultural
products located in the town of Dagami, Leyte. Mr.
Almarines, the owner of the said store would like to open a
branch in Basey, Samar for his purpose of not only to gain
profit bu mainly to accommodate and cater agricultural
suppliers and chemicals needed in farming. The proposed
branch will be selling pesticides, herbicides and
fertilizers. The very first agri-supply in town will boost
economic sustainability, job opportunities of Basaynon and
generally lay economical for farmers and stakeholders.

For this purpose, he would like to conduct a

feasibility study on the possibility of putting in a branch
which will primarily gauge based on the generated financial
data and essential sales parameters and metrics. The study
will determine its financial ratios which are created with

8
the use of numerical values taken from financial statement
to gain meaningful information. The numbers found on a
financial statements, balance sheet, income statements, and
cash flow statement are used to perform quantitative
analysis and assess a branch’s liquidity, leverage growth,
margins, profitability, rates of return, and valuation.

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 CHAPTER I

DECISION SUMMARY OF IDENTIFYING INFORMATION

I. Project Identification

Project Title: ABIDETTE AGRISUPPLY BASEY BRANCH

A. Project Site : Public Market, Basey, Samar

B. Nature of Project : Agriculture – Chemical Dealers

C. Type of Business : Sole Proprietorship

D. Name of Proponent : Christian Almarines

E. Address : Brgy. Baybay, Basey, Samar

F. Initial Financial Requirement

The projected initial investment shall be Php 4,071,538.72.

Equipment & Supplies 1,617,936.00

Working Capital 2,696,173.08

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 TOTAL 4,314,109.08

Table 1.1 Total Working Capital

Working Capital: For the first month

Cash on Hand:

Building (Lease @ 5 years) 1,200,000.00

Permits and Licenses 2,289.50

Salaries and Wages 38,488.00

Phil Health Contribution

677.97
(Employer Share)
SSS Contribution 2,777.61

Pag-Ibig (Employer Share) 400.00

(The current SSS contribution rate is 11% of the monthly

salary credit not exceeding ₱16,000 and this is shared by
the employer (7.37%) and the employee (3.63%).)

Table 1.2 Cash on Hand for the first month.

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 PRODUCTS UNIT NO. UNIT AMOUNT
UNIT COST
Breakfast Cereals:        
1 Ltr. 10 388.00 3,880.00
Energen Chocolate Cereals (30g)

1 Ltr. 10 680.00 6,800.00

Honey Stars (20g)

1 Ltr. 10 1,360.00 13,600.00

Koko Krunch (20g)
1 Ltr. 10 468.00 4,680.00
Milo Cereals (20g)
Quaker Oats Chocolate w/ Milk Sachet 100 184.00 1,840.00
(40g)
Quaker Oats Original w/ Milk 1 Ltr. 10 288.00 2,880.00
(40g)
Vita Quaker 3in1 Oat Cereal Drink
Chocolate (29g)
Canned Meat 1 Ltr. 10 532.00 5,320.00
555 Fried Sardines Hot & Spicy Sack 300 1,125.00 337,500.00
(155g)
555 Fried Sardines w Tausi (155g) Sack 300 605.00 181,500.00

555 Sardines Spanish Style (155g) Sack 300 1,155.00 346,500.00

555 Tuna Adobo (155g) Sack 300 800.00 240,000.00

555 Tuna Afritada (155g)

555 Tuna Caldereta (155g)

Table 1.3 Products, its unit, no. of stock, cost

per unit and total cost.

Total Working 4,314,109.08

Capital

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II. Project Description

ABIDETTE AGRISUPPLY was established in 2010 in Brgy.

Cabuloran, Dagami, Leyte. This store is duly authorized
handlers / dealers by the Fertilizer and Pesticide Authority
under Department of Agriculture. ABIDETTE AGRISUPPLY’s main
markets are pesticide, herbicides and fertilizer. After a
three years, the fertilizer sales had increased
significantly (approximately 21% per year). As a result, the
company intends to open a branch in Basey, Samar for the
proprietor knows that there is no licensed retailers in the
said municipality. Thus, proprietor bid to conduct a
feasibility study in the locality.

When conducting a feasibility study to decide if it is

rational to expand an existing business, many relevant
resources must be utilized to obtain the necessary
information to put a study together. The relevant
information for this study such as building lease, equipment
costs, area farm data, and competitors in the target area,
was gathered from various means of primary and secondary
data.

The proprietor intends to open a store in Municipality of

Basey if it is considered feasible. So that the business may
be able to provide farmers of Municipality of Basey quality
fertilizer, pesticides and herbicides for their farming
needs available near them. If considered feasible, capital
will be from the personal money of the proprietor.

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 CHAPTER II

MARKET STUDY

A. Product Description

Fertilizers are used to supply crops with essential

nutrients for growth and to help replenish the soil of
key elements once a crop has extracted them during the
growth process. Meanwhile, Pesticides are chemicals which
are used to control weeds and insects which pose a threat
to crop production.

B. Target Market

Target Market is the farmers of Municipality of Basey,

Samar and farmers from the neighbouring Municipalities.

C. Target Market Share

Target market share for fertilizers, pesticides and

herbicides dealer in the proposed location is 100% since
there is still no available dealer and or handler with in
the locality.

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D. Market Situation

Farmers of the Municipality of Basey, Samar used to

come to Tacloban City just to buy their fertilizers and
pesticides since there is no available store to provide
their farming needs.

Total number of farmers per record of the Municipal

Agriculture’s office of Municipality of Basey is 8,236. A
total of 15,540 hectares agricultural area, 28% of which
more or less 4,398 hectares are productive farmland.
Meanwhile, the 35% or more or less 5,461 hectares are
considered suitable for cultivation.

E. Marketing Program

Objectives:

 To provide farmers of Municipality of Basey and

farmers from nearby Municipalities quality products
of fertilizers, pesticides and herbicides near to
their doorsteps.

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1. Marketing Strategy:

Product Strategy:

Competitive Analysis - The proprietor will study the

trend of the variety or brand’s saleability and have it
increased in stock by necessary percentile in the next
stocking. In the event that there will be a new product in
the market the proposed business project will introduce it
to the locality for them to try it out and have them give
their feedback.

Place Strategy:

Physical store distribution channel – to be in full range

of products distribution to the customer through a front-end
retail location. The store will be located at the Basey
Public Market, Dry Goods Section so that this will be
accessible to public. Strategically Basey Public Market is
near their port area, hence inbound and outbound buyers
(farmers) will be able to see the store’s available
products.

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Prices Strategy:

The proposed business will opt to use Premium pricing

strategy to take advantage of non-existing of the same line
of business in the locality. Having premium prices benefits
the company by giving the consumers the impression of good
to higher quality products. Restricting the supply over the
demand, thus make the product be more exclusive, limited,
and therefore, desirable in the eyes of the consumers. This
will also have the advantage of raising the business
profits.

Promotional Strategy

Since the ABIDETTE Agri-supply Basey Branch will be new

to the locality, the need of public advertisements is
necessary for promoting the store to the public. Attendance
to forums by local farmers associations conducted per
barangays and hosted by the Municipal Agricultures Office
would give the store free advertising opportunity directly
to the stakeholders.

Another promotional strategy that the store will be

conducting is having free consultation of their farming
problems every Friday conducted by the Store Manager who is
at the same time a License Agriculturist. Thus this will be
a great opportunity to market, promote and suggest the
store’s available products to the public.

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 CHAPTER III

MANAGEMENT STUDY

A. Form of Business Organization

The proposed business which is organized in a form of

sole proprietorship will fully register at the DTI. The
proprietor receives profits and absorbs losses within the
operation of the business and also liable for the debts of
the business.

B. Organizational Structure

To have an effective and efficient management operation

of the proposed business, it must have a well-organized
business structure. The organization needs personnel who are
able to associate smoothly with his co-workers in making
decisions for the success of the business and also have an
interest to devote his time for work and responsibilities.

Figure B.1. Organizational Structure

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C. Labor Requirements

 Employees must work of at least 8 working hours

per day, six (6) days a week.
 Store will be open at 9 am to 6 pm and will be
operational for the whole week except every
Sunday.

D. Human Resource Requirements

Manager

Qualifications:

 Certified Agriculturist
 Graduate of any agriculture related courses
 Must have at least 1 year experience in Agri-Business
Industry
 Must be 21-30 years old in the time of application

Requirements:

 Photocopy of License - Authenticated by the

Professional Regulation Commission
 Transcript of Records
 Application Letter
 Barangay Clearance

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  Police Clearance
 Court Clearance
 NBI Clearance
 Medical Certificate


Cashier

Qualifications:

 At least completed 2 years in college in any business

course
 Must have at least 1 year experience in Cashiering.
 Must be 20-25 years old in the time of application

Requirements:

 Transcript of Records
 Application Letter
 Barangay Clearance
 Police Clearance
 Court Clearance
 NBI Clearance
 Medical Certificate

Bookkeeper

Qualifications:

 Certified Bookkeeper by the TESDA

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  At least completed 2 years in college in any business
course
 Must have at least 1 year experience in Bookkeeping.
 Must be 25-30 years old in the time of application

Requirements:

 Authenticated Bookkeeping License

 Transcript of Records
 Application Letter
 Barangay Clearance
 Police Clearance
 Court Clearance
 NBI Clearance

Sales Staff

Qualifications:

 At least college level

 With an experience in Sales is an advantage
 Must be 20-25 years old in the time of application

Requirements:

 Transcript of Records
 Application Letter
 Barangay Clearance
 Police Clearance

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  Court Clearance
 NBI Clearance

Stock Clerk (Laborer)

Qualifications:

 At least college level

 Must be 20-25 years old in the time of application
 Physically Fit

Requirements:

 Transcript of Records
 Application Letter
 Barangay Clearance
 Police Clearance
 Court Clearance
 NBI Clearance

E. Job Description

Manager - The Manager is in charge in procurement of the

products to be retailed in the store. Conduct statistical
study of the movement of the products in the store and have
the initiative decide and to take appropriate action

22
thereat. Sole authorized to input / set product retail
prices in the store system. As an agriculturist at the same
time, during Fridays and Saturdays he / she will give free
consultation to the farmer’s queries in their farming
problems for this also one of the store’s strategy to
establish connection with the farmers in the locality.

Cashier – Sole authorized in all monetary transaction in the

store. Inputs all purchased products in the system. Submits
monthly financial report to the Manager and furnish the
proprietor thereof.

Bookkeeper – In-charge of maintaining book of accounts of

the store. Also responsible in payment of all taxes due
thereat and in charge in securing all necessary permits
needed in the store operation.

Sale Staff – One who will entertains and or facilitates

clients need and recommend or market store products.
Payments received will be forwarded to the cashier for
purchase records.

Stock Clerk – moves products from the warehouse to store

shelves. Take new merchandise that has arrived in the
stockroom, check for any damage or mislabelling, and get it
to where it needs to be stocked.

F. Proposed salary rates

The proposed salary rate to every employee depends to

their position in the said business.

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Table 3.1. Salaries of employment per month

Employees Monthly Salary (php)

Manager 15, 198.00
Cashier 7,670.00
Bookkeeper 800.00 / month
Sales Staff 7,670.00
Stock Clerk 7,150.00

G. Pre-operating Activities:

The table below gives an overview of the different

activities that the project will undertake before to start
the actual operations.

ACTIVITIES 1ST MONTH 2ND MONTH

BUSINESS PLAN PREPARATION                

CAPITAL PREPARATION                

ENTER INTO LEASE CONTRACT                

SECURING OF PERMITS AND LICENSES                

PURCHASE OF EQUIPMENTS AND SUPPLIES                

INSTALLATION OF EQUIPMENTS                

PURCHASE OF PRODUCTS                

JOB HIRING AND ORIENTATION                

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UNLOADING OF PRODUCTS                

START OF OPERATION                

Table 3.2 Activities conducted in preparation of business

operation

CHAPTER IV

SOCIO ECONOMIC STUDY

Fertilizer is a key ingredient in feeding a growing

local population, which has reached to 55,480 population
based on the 2015 census conducted by the Philippine
Statistics data. Half of all food grown today, for both
people and animals, is made possible through the use of
fertilizer. As demand continues to grow, farmers around the
locality will continue to rely on fertilizer to increase
production efficiency to produce more food while optimizing
inputs. Fertilizers play an essential role in replenishing
nutrients in the soil that are used by plants each growing
season. Three primary nutrients are necessary for plant
growth: nitrogen, phosphorus, and potassium. All must be
present in soil in the right amount to grow healthy crops.

The proposed business venture gives a better living of

every individual in the community. It supports the economic

25
growth both of the local government unit and the local
farmers in way of contributing additional income in form of
taxes and fees that in line with the operation of the
proposed project.

The proposed business aims not only to gain profit but

also to cater the customer’s demand that are in need of
fertilizers, herbicides and pesticides for their farming
needs. This business will also save the freight cost that is
being incurred by the local farmers in buying from Tacloban
City. This also will open an employment opportunities for
some qualified individuals in the locality.

The main purpose of the business is to provide the

Basey’s local farmers and farmers from nearby municipalities
a quality fertilizer, herbicides and pesticides products to
par with their cultivation conditions in order to increase
the yield of their farm products. Thus, achieving the
increase in yield would result to local farmers having a
better living condition.

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 CHAPTER V

TECHNICAL STUDY

A. Product Description

a. Fertilizers – a chemical substance added to soil

or land to increase its fertility.
b. Herbicides – chemical used to kill unwanted
plants.
c. Pesticides – any substance used to kill or repel
or control certain forms of animal life that is
considered to be pest.
B. Equipment & Supplies needed at the Store

ITEM / DESCRIPTION UNIT UNIT COST AMOUNT

Desktop Computer 2.00 40,000.00 80,000.00

Receipt Printer 1.00 4,099.00 4,099.00

Fire Extinguisher 4.00 2,000.00 8,000.00

Thermal Paper 3.00 1,279.00 3,837.00

Cash Books 2.00 50.00 100.00

Monoblock Chairs 6.00 450.00 2,700.00

Electric Fan 2.00 1,700.00 3,400.00

Padlock 6.00 300.00 1,800.00

Table 3.00 1,500.00 4,500.00

Display Glass Cabinet 1.00 6,000.00 6,000.00

Manager’s Swival Chair 1.00 3,500.00 3,500.00

27
Canter Wing Van 1.00 1,390,000.00 1,390,000.00

Store Management System 1.00 100,000.00 100,000.00

HP LASERJET Pro 400 1.00 9,500.00 9,500.00

Bondpaper 4.00 125.00 500.00

TOTAL 1,617,936.00

Table 5.1 List of Equipment and supplies needed in the

store operation.

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C. Store Layout

29
 Figure 5.1 Ground Floor – 1st Building /

Display Area

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Figure 5.2 2nd Floor – 1st Building Office Area – Partially

Stock Room

D. Store Location

Figure

5.1 Proposed store location in the Google Map.

The store will be located at Basey Public Market –

Serafin Marabut St., Brgy. Baybay, Basey, Samar, near

Basey Pier. A signage will be installed in top of the

store. A strategic location in which inbound and

outbound populace in the locality will able to see.

The proprietor will have to undergo contract of

lease of the two buildings for 5 years with the private

owner of the space.

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 CHAPTER VI

FINANCIAL STUDY

A. Financial Assumption

1. Abidette Agrisupply Basey-Branch invested 4,314,109.08

pesos.

2. The stocks for Pesticides and Herbicides is projected to

increase 50% per year and stocks for fertilizers is
projected to increase 10% per year.

3. The propose purchase of goods is scheduled 3 times per

year.

4. Permits and licenses estimate to increase 10% per year.

5. No increase for salary within 5 years.

6. No increase for repair and maintenance within 5 years.

7. Estimated miscellaneous expense is 10,000 pesos and

projected to increase by 2% annually.

8. Light expense is projected to increase by 2% per year.

9. Gas Expense estimated to increase 2% per year.

10.Depreciation expense is computed using straight line

method.

32