CHAPTER 1

INTRODUCTION

Background of the Study

Objectives of the study

The main objective of the study is to assess the potential for chocolate

production in City of Mati. It specifically aimed to:

1. Determine the acceptability.

2. Determine the marketability.

3. Determine the profitability.

4. Determine the payback period.

Significance of the study

This study can be utilized to the following:

Agricultural Development. The study can shed light on the suitability

of Mati's climate, soil, and other environmental factors for cacao cultivation. It

can identify any necessary agricultural practices or infrastructure

improvements required to support successful cacao farming, thereby

promoting agricultural development in the region.

The prospective investors. This study enables investors to make

informed decisions and discover value in this appealing sector. And for them

to recognize that this business has potential returns and is very viable.

The Local community. The proposed business, once established, has

the potential to generate employment and economic opportunities for the

locals.
 The Researcher. To determine the best technique for gathering the

necessary information in handling this type of business in chocolate

production.

Scope and Limitation of the Study

This feasibility study will be centered on establishing the potential

profitability of the chocolate production business in Barangay Central, City of

Mati, as it has the most potential customers and population of any barangay in

Mati.

1. Market Aspects

 To analyze the chocolate production in the City of Mati, they can make

informed decisions regarding product development, pricing, and

distribution to customers.

 Marketing tactics for capturing market opportunities and achieving

long-term success.

2. Technical Aspects

 To properly address the prospective implications of the clients'

businesses.

 To effectively address the efficiency, uniformity, and sustainability of the

production process with customers.

3. Administrative and Managerial aspects

 Establishing a clear organizational structure with defined roles and

responsibilities for each department or team involved in chocolate

 production. This may include production, quality control, procurement,

sales and marketing, finance, and administration.

 Implementing effective performance management systems to evaluate

employee performance, provide feedback, and recognize

achievements.

 Implementing quality control measures at each stage of the production

process, including incoming inspection of raw materials, in-process

monitoring, and final product testing.

 Establishing quality management systems to ensure that chocolate

products meet or exceed quality standards and customer expectations.

4. Financial factors

 To assess and enhance the financial viability of this kind of business.

 To estimate the amount of funding needed for this business and the

total cost of all startup costs related to the production of chocolate.

Definition of Terms

The following terms are defined accordingly to their operational definition;

Chocolate: A sweet food substance made from roasted and ground cacao

beans, often mixed with sugar and other ingredients.

Chocolate production: The process ofi manufacturing chocolate products,

involving steps such as harvesting, fermenting, drying, roasting, grinding, and

blending cacao beans with other ingredients like sugar and milk.
Cacao beans: The seeds of the cacao tree, used to produce cocoa solids,

cocoa butter, and ultimately chocolate products.

Marketability: Refers to the acceptability of the target market in availing the

chocolate products of this proposal.

Payback period: Refers to the period necessary for the initial investment to

be returned.