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A FEASIBILITY STUDY OF ESTABLISHING A CHILI OIL SHOP IN FATIMA,
GENERAL SANTOS CITY
PRESENTED TO
THE FACULTY OF THE COLLEGE OF BUSINESS EDUCATION RAMON
MAGSAYSAY MEMORIAL COLLEGES
GENERAL SANTOS CITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN FEASIBILITY
STUDY
(FS1)
BY
BRENT OBIEDO
JUNE 2024
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RAMON MAGSAYSAY MEMORIAL COLLEGES

COLLEGE OF BUSINESS EDUCATION
BUSINESS ADMINISTRATION PROGRAM
Pioneer Avenue, General Santos City
APPROVAL SHEET
This Feasibility Study entitled “A FEASIBILITY STUDY OF
ESTABLISHING A CHILI OIL SHOP IN FATIMA, GENERAL SANTOS CITY” has
been prepared and submitted by, BRENT F. OBIEDO, in partial fulfillment of the
requirements in Feasibility Study (FS101) for the degree of BACHELOR OF
SCIENCE IN BUSINESS ADMINISTRATION (BSBA) has been examined and is
recommended for acceptance and approval.
CYRA MAE M. LANESTOSA, CPA

Research Adviser
PANEL OF EXAMINERS
MARIVIC B. PEÑAFLOR, CPA, PhD.

Panel Chairperson
GINA G. RAPATAN, PhD. JAYPEE D. BIGNO, CPA

Panelist Panelist
Accepted and Approved on June 2024 in partial fulfillment of the

Requirements in Feasibility Study (FS101) for the degree of BACHELOR OF
SCIENCE IN BUSINESS ADMINISTRATION (BSBA).
MARIVIC B. PEÑAFLOR, CPA, PhD.

Dean, College of Business Education
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EXECUTIVE SUMMARY
The researcher proposed a Chili Oil Shop in Fatima, General Santos City.
This study focuses on whether it would be feasible to establish an chili oil shop
base in General Santos City to determine its viability and profitability. The
researcher needed to ascertain whether there was a market and demand. In
conclusion, the researcher wants to know the opportunities and risk of the
proposed business as well as if there is a profit.
For the marketing aspect, the target market of the business will be the
households in the selected barangays in General Santos City. Specifically, the
barangay's distance from the location of the proposed business is not more than
6 kilometers. These selected barangays are the Fatima, Calumpang, San Jose,
Bawing, and Tambler. The proposed business will implement cost-based pricing,
which is a strategy for determining prices for goods and services in accordance
with their real costs.
For the technical aspect, the suppliers for the proposed business
Bagsakan center and Kcc mall of gensan, which are located within the Philippines.
For the management and organization aspect, the organizational
structure of the proposed business is a flat structure which smallest businesses
use to centralize their activities. A flat organizational structure doesn’t have
multiple layers of management or formal departments. Instead, it is a
straightforward organizational structure that typically has a single owner who
assigns work to staff members directly. The proposed business needs 1 cashier
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III and 2 production staff who can handle their duties and responsibilities in the
business.
For the financial aspect, this study presents the investment cost, financial
forecast, project financial statement, financial analysis, and financial statement
supporting schedule. The proposed business will be formed as a sole
propietorship, with an initial capitalization of Php 407,707.
For the socio-economic aspect, as a result, the researcher concluded
that the proposed business in Fatima General Santos City, is viable to establish.
The proposed business would benefit the society in variety of ways, including
Corporate Social Responsibility, providing employment, paying income taxes. It
will also help the economy by assisting the government. Increase in Industry,
Imposition of Income Tax, Assistance to Schools and Local Government Office.

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DEDICATION
This study is the result of numerous sacrifices. It is wholeheartedly and
proudly dedicated to the people who serve as inspiration of the researcher’s
efforts. To his parents, professors, and circle of friends, who have provided on-
going moral, spiritual, emotional, and financial support to help them complete this
study.
To the faculty and staff of Ramon Magsaysay Memorial Colleges,
particularly his feasibility instructor and adviser, for his tremendous effort and
patience in guiding him throughout this endeavor and in helping to improve and
better understand this study;
Above all, to the God Almighty, for his guidance, power of the mind,
protection, foremost the inspiration in pursuing this, and for giving a healthy life to
be able to carry out this study
All of these are offered to you all.
The Researcher
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ACKNOWLEDGMENT
The researcher acknowledges with deep appreciation and heartfelt
gratitude to all those who gave their valuable assistance in making this study.
This Feasibility Study has been made possible by the guidance,
supervision, cooperation and participation of the following:
To the credible and very competent adviser, Ma’am Cyra Mae Lanestosa,
CPA, kind and patient, for her insightful suggestions, leadership, and help in the
development of this study;
To the panelists, Ma’am Gina G. Rapatan, PhD, Sir Jaypee D. Bigno,
CPA and Maam Marivic B. Peñaflor, CPA, Ph.D., for their expertise in giving
valuable comments and suggestions to improve this study;
To the Owners of each Chili Oil Shop in General Santos City, he is grateful
for their participation in this study;
To his friends, who provided inspiration and drive, but most of all, the
researcher is grateful to his parents for their encouragement and financial support
throughout this study;
The Heavenly Father, thank you for providing everything Lord and for the
lives of the people in this page, the researcher cannot do this alone.
Sincerest gratitude is extended also to the respondents for the time and
cooperation they spent in the interview.
The Researcher
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TABLE OF CONTENTS
Description Page
Title Page i
Approval Sheet ii
Executive Summary iii
Dedication v
Acknowledgement vi
List of Contents vii
List of Figures xiii
List of Tables xiv
List of Exhibits xvi
List of Schedules xvii
List of Appendices xix
CHAPTER I: INTRODUCTION
Background of the Study 1
Rationale of the Study 3
Objectives of the Study 3
Scope and Limitations 4
Significance of the Study 4
Research Methodology 5
Research Design 6
Respondents 6
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Locale of the Study 9
Data Gathering Tool 9
Data Gathering Procedure 10
Definition of Terms 11
CHAPTER II: THE INDUSTRY AND BUSINESS DESCRIPTION
Products 12
Major Players in the Industry 12
Market Trends and Directions 13
Key Success Factor 14
General Description of the Venture 14
Business Features and Style 15
Brand name 16
Product Labeling 16
Potential of the Venture 17
Business Strategic Plan 18
Objectives 18
SWOT Analysis 18
CHAPTER III: MARKETING ASPECT
Market Research Analysis 22
Target Market 22
Demand and Supply 23
Demand Projection 24
Frequency 24
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Supply Projection 30
Estimated Market Share 31
Demand and Supply Analysis 31
Estimated Market Share Percentage 32
Capacity of the Business 33
Intensity of the Competition 34
Market Strategy 34
Sales and Distribution Strategy 34
Pricing Strategy 34
Advertising and Sales Promotion 35
Advertising 36
Sales Promotion 37
CHAPTER IV: TECHNICAL ASPECT
Raw Materials 38
Technical Process 39
Service Flow 40
Business Location 42
Location Map 42
Vicinity Map 43
Layouts 44
Capital Expenditures, Sources, Estimated Cost, and contracts 46
Equipment, Furniture and Fixture, and Supplies used in the production 46
Machinery 46
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Production Equipment 47
Production Supplies 48
Equipment, Furniture and Fixtures, and Supplies used for administrative and
selling activities 49
Office Equipment 49
Furniture and Fixtures 51
Shop Supplies 52
Cleaning Supplies 53
Utilities 53
Electricity consumption 54
Water consumption 54
Internet 55
Gas Consumption 55
Waste management 56
CHAPTER V: MANAGEMENT AND ORGANIZATION ASPECT
Form of Business Organization 57
Organizational Structure 58
Personnel Qualification 58
Personal Duties and Responsibilities 59
Personal Salary Structure 60
Pre-operating Activities 61
Time-Table (Gantt chart) 62

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CHAPTER VI: FINANCIAL ASPECT
Financial Assumptions 64
Revenue 64
Expenses 64
Others 66
Initial Capitalization 66
Sources of Financing 67
Capital Structure 67
Cost of Capital 68
Projected Financial Statements 68
Projected Statement of Financial Performance 68
Projected Statement of Financial Position 69
Projected Statement of Cash flows 70
Projected Statement of Changes in Equity 71
Financial Ratio and Analysis 72
Liquidity Ratio 72
Current Ratio 73
Solvency Ratios 73
Debt to Equity Ratio 74
Debt Ratio 74
Profitability Ratios 75
Return on Equity 75
Return on Total Assets 76

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Capital Investment Analysis 76
Payback Period 77
CHAPTER VII: SOCIO-ECONOMIC ASPECT
Benefits to the Society 78
Benefits to the Economy 79
EXHIBITS xxi
SCHEDULES xxvi
APPENDICES lxx
BIBLIOGRAPHY lxxxi
CURRICULUM VITAE lxxxii

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LIST OF FIGURES
Figure Description Page
1 Research Design 8
2 Business Logo 16
3 Estimated Market Share 32
4 Service Flow 41
5 Location Map 43
6 Vicinity Map 43
7 Floor Plan 45
8 Perspective View 45
9 Organizational Structure 58
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LIST OF TABLES
Table Description Page
1 Respondents from Selected barangay 7
2 Existing Major Players 13
3 Lists of Products 15
4 Business Target Market Size 23
5 Market Demand 24
6 Average Frequency (Chili Garlic OiI) 25
7 Average Frequency (Chili oil) 27
8 Average Frequency per Product 30
9 Supplies from Direct Existing Players 30
10 Demand and Supply analysis 31
11 Estimated Market Share Percentage 32
12 Projected Annual Capacity 33
13 Price List 35
14 Raw Materials 38
15 Product Specification (Chili oil) 38
16 Product Specification (Chili Garlic oil) 39
17 Product Processes (Chili oil) 39
18 Product Processes (Chili garlic oil) 40
19 Minutes Consumed in Service Flow 42
20 Leasehold Improvement 46
21 Machine Specifications 47
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LIST OF TABLES
22 Product Equipment 47
23 Product Supplies 48
24 Equipment Specifications 50
25 Furniture and Fixtures Specification 51
26 Supplies Specifications 52
27 Cleaning Supplies 53
28 Electricity Consumption 54
29 Water Consumption 55
30 Telephone and Internet service 55
31 Gas Consumption 56
32 Personnel Qualifications 59
33 Salary Structure 60
34 Time Table 63
35 Projected Investment Cost 67
36 Statement of Financial Performance 69
37 Statement of Financial Position 70
38 Statement of Cash flows 71
39 Statement of Change in Equity 72
40 Current Ratio 73
41 Debt to Equity Ratio 74
42 Debt Ratio 74
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LIST OF TABLES
43 Return on Equity 75
44 Return on Total Asset 76
45 Payback Period 77
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LIST OF EXHIBITS
Exhibits Description Page
1 Projected Statement of Financial Performance xxii
2 Projected Statement of Financial Position xxiii
3 Projected Statement of Cash flows xxiv
4 Projected Statement of Owners Equity xxv

xviii
LIST OF SCHEDULES
Schedule Description Page
1 Projected Annual Sales Revenue xxvii
2 Projected Cost of Good Sold xxviii
3 Projected Salaries Expense xxxviii
4 Projected Transportation Expense xxxix
5 Projected SSS,Phic, Pag-ibig Expense xl
6 Projected Supplies Expense xli
7 Projected Advertising Expense xlii
8 Projected Depreciation Expense xliii
9 Projected Utilities Expense xlvi
10 Projected Repairs and Maintenance xlix
11 Projected Rent Expense lii
12 Projected Business permit and license liii
13 Projected Miscellanies Expense liv
14 Projected Percentage Tax Expense lv
15 Projected Income Tax Expense lvi
16 Projected Statement of Inventories lvii
17 Projected Prepaid Rent lviii
18 Projected Property, Plant and Equipment lix
19 Projected Accumulated Depreciation lxii
20 Projected Security Deposit lxv
21 Projected SSS,Phic,Pag-ibig Payable lxvi

xix
LIST OF SCHEDULES
Schedule Description Page
22 Projected Income Tax Payable lxvii
23 Projected Expanded Withholding Tax Payable lxviii
24 Projected Percentage Tax Payable lxix

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LIST OF APPENDICES
Appendix Description Page
A. Letter to the Respondents lxxi
B. Letter to the LGU lxxiv
C. Survey Questionnaire lxxv
D. Interview Guide lxxvii
E. Certification of Engineer lxxix
F. Certification of Grammarian lxxx

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CHAPTER I
INTRODUCTION
This chapter discusses the background of the study, the rationale of the
study, objective of the study, scope, and limitations, significance of the study,
research methodology, research design, respondents of the study, locale of the
study, data gathering tools, data gathering procedure and definition of terms.
Background of the Study
The proposed business of the researcher is a chili oil shop. The proposed
chili oil business is set to revolutionize the culinary landscape by specializing in the
sale of two distinct products: chili oil and chili garlic. This unique concept aims to
cater to a diverse range of tastes, offering customers the perfect blend of spice
and flavor to elevate their culinary experiences. The venture envisions becoming
a go-to destination for those seeking high-quality, artisanal chili-infused
condiments.
Chili oil has deep roots in China, where it originated during the late Ming
dynasty. Initially conceived as a means of preserving the fragrance and freshness
of chili, it quickly evolved into a culinary phenomenon. The iconic combination of
hot chilies and rapeseed oil not only served as a preservative but also became a
staple in various cuisines. This trend transcended borders and found its way to the
Philippines, where chili oil has become a vital ingredient in local kitchens. In the
Philippines, chili oil represents a fusion of international flavors with a distinct
Filipino touch. The nation embraced this fiery condiment, integrating it seamlessly
into its rich and diverse culinary traditions. Whether used as a dipping sauce for
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dim sums or to enhance the flavors of local dishes, chili oil has become a kitchen
essential. This adaptation showcases the Philippines’ openness to global
gastronomic influences, making chili oil a ubiquitous and beloved addition to
Filipino cuisine. Chili oil has also made its mark in General Santos City, Philippines,
where it has become a beloved addition to the local culinary scene. Whether
drizzled over seafood dishes or mixed into traditional recipes, chili oil adds a fiery
kick that resonates with the city’s vibrant flavors. Its versatile use reflects General
Santos City’s dynamic food culture, further enriching its diverse gastronomic
landscape.
Establishing a Chili Oil Shop presents a compelling opportunity in the
culinary market, capitalizing on the growing trend of diverse and adventurous food
preferences. The rising popularity of spicy cuisine, coupled with the versatility of
chili oil in various dishes, creates a niche market that can attract a broad customer
base. However, risks should be carefully navigated, including the potential
saturation of the market and competition from established brands. Additionally,
managing supply chain logistics for quality ingredients are crucial. Success in the
spicy food business requires consistently delivering high-quality products to stand
out in the competitive market and seize the opportunity.
The vision extends beyond providing exceptional condiments; it includes
fostering a deeper appreciation for diverse flavors and culinary craftsmanship. By
supporting local producers and engaging with the vibrant food culture of Gensan,
the business aims to become an integral part of the community, leaving a lasting
impact on the city’s gastronomic landscape. Through this culinary journey, the Chili
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Oil Business envisions creating a flavorful legacy that resonates with the unique
tastes of General Santos City. This study focuses on whether it would be feasible
to establish an chili oil shop base in General Santos City to determine its viability
and profitability. The researcher needed to ascertain whether there was a market
and demand. In conclusion, the researcher wants to know the opportunities and
risk of the proposed business as well as if there is a profit.
Rationale of the Study
Researcher proposed to conduct this research in establishing a chili oil shop
in Barangay Fatima, General Santos City to examine the feasibility and viability of
this business in marketing, technical, management and organization, financial, and
socio-economic aspects. Since it will be the first chili oil shop that will be
established in the said location, there’s a great possibility that it will attract a lot of
customers and have promising profitability along the way. A feasibility study is to
assess the potential of a proposed business venture. The study will identify the
opportunities and risks associated with the business and develop a plan to mitigate
the risks. The feasibility study will also help to determine the financial viability of
the business, and to secure funding from investors or lenders.
Objectives of the Study
The general objective of this study was to determine the viability of
establishing a Chili oil business in Fatima, General Santos City.
1. Analyze the Chili oil Industry in General Santos City.
2. Describe the chili oil Industry in General Santos City.
3. Determine the viability of the proposed business in the future aspect.

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3.1Marketing
3.2Technical
3.3Management and Organization
3.4Financial and
3.5Socio-economic
Scope and Limitation
This study is conducted primarily for the purpose of figuring out the
feasibility of establishing a Chili oil shop in Fatima, General Santos City. It
examined the fundamental factors of the business in aspects such as marketing,
technical, management and organization, financial, and socio-economic.
The data that was collected by the researcher is only limited to the three (3)
selected respondents by the use of an interview guide that serves as an instrument
to gather major information and data sets about the proposed business. The study
was conducted from September 2023 to November 2024. Eventually, the guide
questionnaire will be consolidated in order for the study to be established.
Significance of the Study
The benefactors of the study will particularly be given a piece of relevant
information and knowledge, and this will be the following.
Potential Investors – The result of this study provides broad information
to future investors that have the same interest in the proposed business and build
a fundamental foundation before they start.
Existing Players – Existing chili shop business owners can use this
information to expand their own operations or adjust their strategies to remain

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competitive. They can benchmark their current practices against the findings of the
study to identify areas for improvement in terms of service quality, pricing, or
technological upgrades
Local Government – The study can inform local governments about the
specific needs and challenges of the shop business, helping them tailor
regulations, zoning ordinances, and licensing requirements accordingly. Chili Oil
Shop businesses contribute to the local economy by creating jobs and generating
tax revenue.
Future Researchers – This study helps them start the research with the
same topic and gather more data and relevant information that is important to the
research to be conducted.
Researcher – The result of this study helps the researcher be
knowledgeable about the baseline of related information required to establish a
chili oil shop.
Research Methodology
In this section, it discusses the methods of research and the ways in which
the researcher conducted the study. This includes the research design, the
respondents, the locale of the study, data gathering tools, data gathering
procedures, and the definition of terms. It is very important to have a detailed
business plan regarding customers’ unfamiliarity with the proposed business, to
determine the right location and collect information about the target market, and to
define business requirements. Additionally, a thorough research methodology aids

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in identifying potential challenges and opportunities, guiding the development of
effective strategies for the proposed business.
Research Design
The whole research process was discussed, with the main study of
establishing a chili oil shop in Fatima General Santos City. The researcher
used the descriptive exploratory type of research, specifically the checklist
and interview method, in gathering data from the respondents to determine
the best research design, data collection method, and subject. This
research provides a detailed process in making this kind of study which can
be seen in Figure 1 on the next page.
Respondents of the Study
The respondents of the research are the existing chili oil shops here
in General Santos City. They are the 5 Angels chili oil shop, Cordova Chili
oil shop and Let-Let chili oil shop. These establishments were selected as
respondents due to their prominence in the local chili oil market. Each of
these shops has established a notable presence and customer base within
the city, making them representative samples of the existing chili oil
business landscape in General Santos City.
These particular chili oil shops were chosen as respondents for the
feasibility study of the proposed chili oil business for several reasons. Firstly,
they have demonstrated success and sustainability in the local market,
indicating a level of understanding and adaptation to the preferences of the
city's residents. Secondly, their diverse approaches to product offerings,

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marketing strategies, and customer engagement can provide valuable
insights into the factors contributing to their success.
Additionally, the study’s respondents comprised households,
specifically those residing in Fatima, General Santos City, who constituted
the target market for the proposed business. The researcher includes the
100 samples from the target market to be the respondents. Their response
is needed for the computation of the market demand and the frequency.
Table 1
Respondents from selected Barangay’s
Selected No. Of Percentage On

Respondents
Barangay Household Total Household
Bawing 4,339 2.49% 8
Calumpang 21,930 12.58% 39
Fatima 18,153 10.41% 33
San Jose 3,376 1.94% 6
Tambler 7,885 4.52% 14
Total 55,683 31.94% 100
In order to get the one hundred (100) respondents from the selected
(5) barangays whose distance from the location of the proposed business
is not more than 8 kilometers, the researcher divided the percentage of total
households in the selected barangay by the total percentage of total
households, which is 31.94%, then multiplied by 100 to get the number of
respondents in each selected barangay. Since the result is a decimal, the
researcher adjusted it and round off to a single digit to get the sum of 100
respondents from the five selected barangays.

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A Feasibility Study of Establishing a Chili Oil Shop

Glowing in Barangay Fatima, General Santos City
Objectives of the
Study
Market Aspect
Technical Aspect
Financial Aspect
Management and
Organization Aspect
Socio-Economic Aspect
Research Methodology
Data Gathering Tools Data Gathering

Interview Guide Procedure
Survey Questionnaire Identifying Target Market
Related Articles Internet Conduct Surveys and
Interviews
Summarized all the Data
Respondents
(Households)
Locale of the Study

(General Santos City)
To Establish a Chili Oil Shop Glowing in Barangay

Fatima, General Santos City
Figure 1. Research Design

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Locale of the Study
General Santos City is a city in the Philippines located in the
Soccsksargen region. It is known as the “Tuna Capital of the Philippines”
due to its large tuna fishing industry. General Santos City is also a melting
pot of cultures, with people from all over the Philippines and other countries
living in the city. This diversity is reflected in the city’s food scene, which
offers a wide variety of cuisines, including many that use chili oil.
Data gathering tools
In order to get relevant information, the researcher used a range of
tools during the study to gather relevant data and facts. It includes the (5)
aspects which focused on putting up a chili oil shop in Fatima, General
Santos City. The researcher will make use of the following tools:
Internet – The internet is a handy tool for education and can be used
to facilitate learning in a variety of ways. Using this instrument will help the
researcher direct the proposed business to an existing, pertinent enterprise.
The use of the internet for research will help the researchers learn more
about the study.
Interview guide – The researcher will be preparing questions
pertaining to the different aspects that this proposed business covers. This
interview Guide questions are different questions that aims to gather
sufficient information in the aspect of marketing, technical management and
organization, financial, and socio-economic.

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Checklist – Certainly, using checklists as a data gathering tool
allows me, as the researcher, to systematically collect and organize relevant
information for my study. Checklists help ensure that no crucial aspects are
overlooked during the data collection process by providing a structured
framework for assessing specific criteria, questions, or variables. This
method enhances the efficiency of data gathering, reduces the risk of
missing essential data points, and contributes to the accuracy and reliability
of the information collected. Checklists are a valuable tool for maintaining
consistency and completeness in your research, which is essential for
making well-informed decisions for my chili oil business in Fatima, General
Santos City.
Data gathering procedure
Data gathering procedure was the basis for the future studies in line
with the same proposed business. The researcher formulated an interview
guide using pertinent and useful questions related to the proposed
business. After the interview guide questions were checked by the instructor
the formulated interview guide is now well-established and ready to be
answered by the respondents. The questions encompassed the
fundamental aspects of the Proposed business, from marketing, technical,
management and organization, studies financial, and socio-economic
aspects.
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Definition of Terms
The following terms are operationally defined for better understanding of the
readers.
Chili Oil Shop –This is the proposed business of the researcher. The
proposed business will sell chili oil and chili garlic oil.
Financial aspects – This part of the study evaluates the cash flow of the
proposed business such as initial investment, cost of capital, and return on
investment. Ultimately it will also determine whether the business is profitable or
not.
Marketing Aspect – It determines the viability of the products and services
of the proposed business for its customers.
Management and Organization – Refer to the people of the proposed
business working together as one toward achieving a particular goal in the industry.
Socio-economic Aspect – This part of the study shows how feasible the
proposed business is for the chosen location, how it impacts society, and the
economic growth that this proposed business could contribute.
Technical Aspect – This part of the study refers to the detailed operations
of the proposed business; such as tools, machines, manpower, logistics, and
technology related to the process of operating the proposed business.

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CHAPTER II
THE INDUSTRY AND BUSINESS DESCRIPTION
This chapter discusses the services and major players in the industry;
market trends and directions; capacity of the industry; key success factors; and a
general description of the venture. It contains the business name, service features
and style, service labelling, business logo, uniqueness of the service, and potential
of the venture. It also discusses the objectives and SWOT analysis.
Products
In the fiercely competitive food industry, the researcher identified 3 major
players, who have introduced enticing products to tantalize taste buds. The first, 5
angels Chili oil shop offering chili oil and Chili oil with garlic. Cordova Chili Oil is an
online shop that offers chili garlic oil. Let ² that also offer chili peppers, chili oil, and
chili garlic oil. These three industry leaders have carved a niche in the market,
each contributing to the dynamic landscape of the chili oil industry.
Major players in the industry
There are many major players in the industry, but the researcher chose only
(3) major players in the chili oil business in General Santos City, such as 5 Angels
Chili Oil Shop, which offers chili oil and chili oil with garlic. Cordova Chili Oil is an
online shop that offers chili garlic oil. Let² Chili oil garlic that also offer chili peppers,
chili oil, and chili garlic oil. These three industry leaders have carved a niche in the
market, each contributing to the dynamic landscape of the chili oil industry.
The following table on the next page are the existing major players that the
research chosen:
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Table 2
Existing Major Players
Name of 5 Angel Chili oil Cordova Chili oil Let2 Chili oil
Major Player shop online shop garlic
Location Calumpang, Brgy. Bawing, Fatima, General

General Santos General Santos Santos City
City City
Products Chili oil Chili Garlic Oil Chili Peppers

Chili oil with garlic Chili Oil
Chili Garlic Oil
Facilities Kitchen: This is Storage Facility Retail area; This is
where they Nice kitchen area where they sold
manufacture their products
their products. Package area:
Product Display: Where the chili oil
This is where is bottled and
they display their labeled
various
products.
Years of Existence 6 Years and 11 1 Year and 3 8 Months
Months months
No. of Employees 2 Employee’s 1 Employee 1 Employee
Market Trends and Directions
The current market trend reflects a growing preference for spicy foods
among consumers. There’s a notable inclination towards incorporating spiciness
into home-cooked meals. Not only are individuals seeking spicier options for their
homemade dishes, but restaurants and food stalls are also embracing the use of
chili oil and chili garlic oil in their cuisines. This trend signifies a shift in consumer
taste preferences, where the desire for spicy flavors has become increasingly
prevalent.
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Moreover, the market direction indicates a consistent rise in the
consumption and demand for chili oil products. This upward trajectory emphasizes
a promising future for businesses involved in the chili oil industry. As more people
gravitate towards spicy culinary experiences, the demand for quality chili oil
continues to grow steadily, presenting a favorable outlook for the market’s
expansion and profitability.
Key Success Factors
The following are the key success factors of the existing major players from
the interview made:
Accessible Location. A prime location, easily accessible to the public and
customers can conveniently visit the shop.
Customer Satisfaction. Happy customers are more likely to return and
recommend the shop to others.
Consistent Product. Consistency in product quality is essential.
Customers should have confidence that each time they purchase a product from
the shop, it will meet their expectations in terms of flavor and heat.
People. A shop assistant to maintain product displays and cleanliness, all
contribute to the smooth functioning of the business
General Description of the Venture
In this part of the study, it discusses the brand name, logo, and location,
structure of the establishment and also the operating hours and dates of the
proposed business.
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Business Features and Style
The proposed chili oil shop integrates a distinctive blend of features
and styles, encompassing both product manufacturing and retail
operations. With a dedicated production area within the shop, the business
adopts a monthly batch production model, ensuring the freshness and
consistency of its chili oil products. Operating from 8:30 am to 5:00 pm,
Monday to Saturday, the shop serves as a welcoming space for walk-in
customers, showcasing the proposed products through engaging product
displays. A focus on quality assurance is maintained through rigorous
checks on raw materials and production processes. Emphasizing local
sourcing, the business supports regional suppliers and promotes
sustainability. This approach positions the chili oil shop as a dynamic and
appealing destination for enthusiasts seeking both high-quality products
and an immersive culinary experience. Listed below are the product that the
proposed business offers.
Table 3
List of products
Product Description
Chili Oil Chili oil is made with a blend of chili peppers and spices,
creating a complex and satisfying heat. And it has three
containers of that size (4oz) 113 Grams (6oz) 170
Grams and (8oz) 227 Grams.
Chili Garlic Oil Premium chili peppers with freshly minced garlic. And it
has three containers of that size (4oz) 113 Grams (6oz)
170 Grams And (8oz) 227 Grams.
16
Brand Name
The proposed business name, inspired by the founder's last name,
Obiedo, "Obiedo Home Chili Oil," takes shape as a business with a
profound dedication to households as its core clientele. This distinctive
name resonates with a sense of uniqueness and individuality, positioning
itself uniquely in the highly competitive food industry. It serves as a symbol
of the founder’s.
Unwavering commitment to delivering top-notch chili oil products,
specially crafted to enrich the art of home-cooked meals. With an
unmistakable focus on chili oil, it caters to consumers who crave bold and
flavorful condiments to elevate their culinary experiences within the
comforting confines of their homes.
Product Labelling
A logo is an integral part of the business. The proposed business
chose this kind of logo design since it has a catchy appeal to the people.
Shown in Figure 2 is the logo of the proposed business.
Figure 2. Business Logo

17
The logo for "Obiedo Chili Oil" presents a captivating design with a
background in a deep, dark turquoise. Prominently featured on this
background is the brand name, which stands out in a vibrant and attention-
grabbing bright red color. This choice of color not only adds a touch of
boldness and passion to the logo but also underscores the brand's
unwavering commitment to delivering flavorful chili oil products.
Above the brand name, there's a stylized chili pepper icon
suspended in the design. Its vivid red color complements the text beneath
it, creating a visually appealing and harmonious composition. This chili
pepper icon serves as a visual representation of the brand's core offering,
emphasizing its focus on chili oil products. The logo effectively
communicates the essence of the business, which is the fusion of quality
chili oils and bold flavors.
Overall, the logo exudes a sense of uniqueness and allure, making
it highly likely to catch the eye of potential customers and leave a lasting
impression, reinforcing the brand's dedication to serving households with
premium chili oil products.
Potential of the venture
The proposed business has a number of strengths that give it a
competitive advantage. First, the shop uses a unique family recipe that has
been passed down for generations. This recipe is what sets Obiedo chili oil
apart from other chili oils on the market. Second, the shop uses fresh,
premium ingredients and slow-cooks its chili oil to perfection. This ensures
18
that Obiedo chili oil has a rich, flavorful taste. Third, the shop offers Chili oil
and Chili garlic oil to choose from. This means that there is chili oil for
everyone, regardless of their taste preferences. Fourth, the shop’s chili oil
is vegan and gluten-free. This means that everyone can enjoy Obiedo chili
oil, regardless of their dietary restrictions.
Business Strategic Plan
This section presents the Objectives and SWOT analysis of the proposed
business.
Objective
The business will have the following objectives:
1. To generate income from the business at a reasonable rate.
2. To sell chili oil and chili garlic oil to its valued customers.
3. To build a strong bond with the customers.
4. To hire competent and skilled workers, who have a pleasing
SWOT Analysis
In this part of the study, the SWOT analysis will be discussed which
includes the Strengths, Weaknesses, Opportunities, and Threats of the
proposed feasibility study.
Strengths
The following strengths of the proposed business will be the
key factors in achieving the success of the business such as
accessible location; efficient employees; and quality products and
services.
19
Accessible Location – The location of the proposed
business has a convenient access flow that gives the customers
ease in purchasing particular products. Since the proposed business
is just along the highway, most probably the people that are passing
by can have a glance at the venture.
Good Managerial Skills – The proposed business will
practice good managerial skills in order to achieve its vision and
goals. In addition, having skills in management inside the business
will help it grow and sustain a healthy customer relation.
Weakness
Weakness is an inevitable part of the business but in order for
the business to strive, it should conquer its weaknesses. The
following are the weaknesses that the proposed business needs to
address and amend.
Lack of experience – this will be the primary weakness of the
proposed business. The venture will be in a “work in progress” phase
since it is just a starting point in the industry, most especially on how
to market our proposed business.
Poor Network – since the proposed business is new to the
industry it might not have the connections necessary in operating the
venture. The venture will encounter difficulties in marketing their
products and services.

20
Opportunities
Opportunity is one of the core concepts in business since it
aims to explore the issues and promising possibilities in a landscape
of business. The following are the opportunities for the proposed
business.
Growing population – as time goes by, the proposed business will
maximize the full potential of its target customers due to the
increasing population of the said location of the venture.
Subsequently, it will lead to a higher demand for Chili oil.
Development of products – one of the promising
opportunities for the proposed business is to be able to create its own
brand-name products such as Chili oil and Chili Garlic oil once they
developed a profitable brand for their valued customers.
Threats
Threats are those outside factors that can affect our business
negatively that hinder its profitability. The following are the threats of
the proposed business that needs to be evaluated.
Economic downturn – the proposed business will encounter
a huge threat if this threat occurs. Consequently, it will negatively
affect the buying and spending decisions of the customers from the
proposed business.
Competition – this kind of threat will the proposed business
needs to face since they are just at a starting point. A lot of customers
21
will prefer to purchase from those established businesses that are
proven and tested throughout the year.
Chili peppers – chili pepper prices could be influenced by
various factors such as weather conditions affecting crops, changes
in demand, supply chain disruptions, or geopolitical events impacting
production regions. Additionally, market dynamics and inflation can
contribute to fluctuations in commodity price.

22
CHAPTER III
MARKETING ASPECT
This chapter represents the market research and analysis which includes
target market, estimated market share, intensity of competition, and marketing
strategy of the proposed business, pricing strategy which includes the product
prices, pricing structure, and promotional strategy.
Market Research Analysis
The goal of market research is to better understand the demands of a
market by methodically collecting data on individuals, businesses, or both. The
outcomes of market research, which are typically condensed in a report, are then
utilized to assist business owners in making decisions on the company’s
strategies, operations, and potential customers.
Target Market
The target market of the business will be the households in the
selected barangays in General Santos City. Specifically, the barangay's
distance from the location of the proposed business is not more than 6
kilometers. These selected barangays are the Fatima, Calumpang, San
Jose, Bawing, and Tambler.
The secondary target market is those household of remaining
barangay’s in General Santos City. The Table for the estimated market size
in shown on the next page.

23
Table 4
Business Target Market Size
Margin Total
Poverty Total Of Adjusted
Selected Household Rate % Wiling Willing Error Estimated
Barangay’s Population (9.90%) Respondents Respondents (10%) Market Size
Calumpang 21,930 2,171 100% 19,759 1,976 17,783
Fatima 18,153 1,979 100% 16,174 1,617 14,557
Bawing 4,339 430 80% 3,127 312 22,815
San Jose 3,376 334 85% 2,586 259 2,327
Tambler 7,885 781 80% 5,683 568 5,115
Total 55,683 5,695 89% 47,329 4,732 42,597
To get the estimated market size, the researcher less the household
population to the poverty rate to get the population above poverty rate then
multiplied to percentage of willing respondents to get the total of willing
respondents. Then, less it to the margin of error of 10% to get the adjusted
market size per household. Then lastly, the researcher sum all of the
adjusted market size per household to get the adjusted market size of
42,597.
Demand and Supply
This section explores the capital analysis of projected market
demand and supply dynamics. The analysis will provide valuable insights.
Into the opportunities and challenges ahead, examining the anticipated
demand for the product in relation to the capacity of current market players.
The researcher uses demand and supply to determine how the connection
between demand and supply could fulfill customer satisfaction while
minimizing opportunity costs.

24
Demand and Projection
The demand projection discusses the industry’s potential
demand, which is protected by the business. The table below
summarizes the Demand of the market.
Table 5
Market Demand
Particulars Total
Total Market Size 42,597
Multiplied By Average Bottle Per Household 43
Total Market Demand 1,831,671
The table above shows the calculation for getting the total
market demand for the proposed business. The adjusted market size
is computed and shown in table 4. To get the total demand per bottle.
The researcher multiplied the total market size of 42,597 to the
average bottle per year.
Frequency
The table next page shows the average of the proposed
business in a year. The researcher gathered all of the data and
information from the checklists. The frequency in a year was
multiplied by the number of willing respondents to arrive at an
approximate number for the total frequency in a year

25
Table 6
Average Frequency (Chili Garlic Oil)
Chili Garlic Oil Frequency

Respondent Small Medium Large Total
1 5 5
2 5 5
3 10 10
4 10 10
5 10 10
6 5 5 10
7 6 6
8 6 6
9 6 6
10 11 11
11 11 11
12 12 12
13 12 12
14 24 24
15 24 24
16 12 12 24
17 24 24
18 14 14
19 14 14
20 14 14
21 28 28
22 28 28
23 28 28
24 14 14 28
25 28 28
26 28 28
27 14 14 28
28 15 15
29 30 30
30 30 30
31 30 30
32 15 15 30
33 45 45
34 15 30 45
26

35 15 30 45
36 30 15 45
37 30 15 45
38 30 15 45
39 45 45
40 16 16
41 16 16
42 17 17
43 19 19
44 57 57
45 57 57
46 38 19 57
47 38 19 57
48 57 57
49 57 57
50 23 23
51 23 23
52 23 23
53 46 46
54 23 23 46
55 69 69
56 69 69
57 46 23 69
58 23 46 69
59 46 23 69
60 69 69
61 24 24
62 24 24
63 24 24
64 24 24
65 24 24
66 24 24
67 24 24
68 24 24
69 81 81
70 81 81
71 81 81
72 27 54 81
27

73 54 27 81
74 81 81
75 120 120
76 40 40
77 40 40
78 120 120
79 80 40 120
80 162 162
81 54 54
82 54 54
Total 1242 1475 554 3271
Total Bottle Per Year 3271
Divided By Willing Household 82
Average Bottle Per Household In A Year 40
Table 7
Average Frequency (Chili Oil)
Chili Oil FREQUENCY

Respondent Small Medium Large Total
1 5 5
2 5 5
3 5 5
4 10 10
5 5 5 10
6 5 10 15
7 5 5 5 15
8 10 5 15
9 6 6
10 6 6
11 6 6
12 11 11
13 12 12 24
14 24 24
15 24 24
16 12 12 24
17 14 14
28
Chili Oil FREQUENCY

18 14 14
19 28 28
20 14 14 28
21 14 14 28
22 28 28
23 14 14 14 42
24 28 14 42
25 42 42
26 15 15
27 15 15
28 30 30
29 15 15 30
30 15 15 30
31 30 30
32 30 15 45
33 15 30 45
34 45 45
35 15 30 45
36 30 15 45
37 16 16
38 16 16
39 16 16 32
40 32 32
41 57 57
42 57 57
43 19 38 57
44 20 20
45 20 20
46 20 20
47 40 40
48 40 40
49 60 60
50 40 20 60
51 60 60
52 23 23
53 23 23 46
54 46 46
55 46 46
56 46 46
57 69 69
58 46 23 69
29
Chili Oil FREQUENCY

59 46 23 69
60 23 46 69
61 23 46 69
62 69 69
63 24 24
64 24 24
65 48 48
66 24 24 48
67 54 54
69 54 54
70 81 81
71 81 81
72 54 27 81
73 81 81
74 54 27 81
75 27 54 81
76 38 38
77 114 114
78 76 38 114
79 38 76 114
80 40 40
81 40 40
82 40 40
83 120 120
84 80 40 120
85 120 120
86 80 40 120
87 80 40 120
88 120 120
89 80 80
90 50 50
91 54 54
92 54 54
Total 1362 1952 936 4250
Total Bottle Per Year 4250
Divided By Willing Household 92
Average Bottle Per Household In A Year 46
30
Table 8
Average Frequency per product
Particulars Total
Average Frequency (No Of Bottles) Per
Household In A Year (Chili Garlic Oil) 40
Average Frequency (No Of Bottles) Per
Household In A Year (Chili Oil) 46
Total 86
Divided By The No..Of Product 2
Average Frequency ( No Of Order's)
Per Household In A Year 43
Supply Projection
Supply of the services will be based on the number of clients
catered by the businesses. The researcher will use the daily
customers handled in the business that will help to identify the
estimated annual capacity of the business. Determining the supply
of the competitors is significant since it will determine the free market
of the proposed business.
The table below shows the summarized total annual supply of
a competitor of the business
Table 9
Supplies from Direct Existing Players
Existing Player No. Of Order Per No. of Working Total

Month Months In A Annual
Year Supply
Let² Chili Garlic Oil 600 12 7,200
5 Angels Chili Oil Shop 400 12 4,800
Cordova Chili Online Shop 300 12 6,600
Total Supply From Direct Existing Players 12,600
31
The proposed business has three (3) direct competitors. The
average number of order per month is shown in the second column.
The total number of working moths in a year, which is in the third
column, is the next factor to consider. Finally, the researcher
multiplies the average number order per Month to get the annual
supply of the competitor.
Estimated Market Share
Estimated market share is the approximate percentage of an industry that
is earned by a particular business over a specified time period. The measurement
indicates a company’s size within its market. To determine the market, share of the
proposed business, the free market and annual capacity of the proposed business
were determined.
Demand and Supply analysis
The table below shows the demand-supply analysis of the industry
in the locale.
Table 10
Demand and Supply Analysis
Particular Total
Total Market Demand In Bottles 1,831,671
Less Of Total Supplies From Existing Player In
Bottles 12,600
Free Market 1,819,071
The table from previous page shows the free market figure of which
is computed by subtracting the total supplies from existing players from the
32
total demand. The free market of the industry is where new business will
penetrate.
Estimated Market Share Percentage
Shown below is the estimated market share of the proposed business.
Table 11
Estimated market Share percentage
Particulars Total
Estimated Annual Capacity 15,360
Divided By Free Market 1,819,071
Estimated Market Share Percentage 0.84%
The market share of the proposed business is computed by using
the total estimated annual practical capacity of 15,360 divided by the free
market of 1,819,071 that was computed in the preceding table. The market
share of the proposed business is 0.84%
The figure below illustrates the graph of the estimated market share
Sales
1%
1%
ANNUAL CAPACITY
EXISTING PLAYERS
FREE MARKET
98%
Figure 3. Estimated Market Share Percentage

33
The Capacity of the Business
The capacity of the business is the maximum capability of the
business to render service necessities to cater to the needs of the
customers and patrons of the proposed business. The annual capacity of
the proposed business is shown in the table below.
Table 12
Projected Annual Capacity
Particulars Total
Total Production Time Per Month 1,920
Divided By No Of Minutes Per Batch 120
No Of Batches 16
Multiplied By No Of Bottles Per Batch 50
Total No. Of Bottles 800
Multiplied By No. Of Production Staff 2
Total No Of Products Per Month 1,600
Multiplied By Annual Operating Months 12
Total Capacity ( In Bottle) 19,200
Multiply By Practical Capacity Rate 80%
Estimated Annual Capacity (Bottle/Year) 15,360
To get the estimated annual capacity, the researcher divided the
number of total production time (minutes) per month to the number of
minutes per batch to get the total batches per month, then multiplied it to
the number of bottles per batch and number of production staff to get the
total number of bottle produce per month, then multiplied it to the number
of annual operating months to get the total capacity. And finally, the
researcher multiplied the total capacity to the percentage of practical
capacity rate to get the 15,360 Estimated Annual Capacity.

34
Intensity of the Competition
There are 3 existing chili oil shops in General Santos City. The level of
competition in the locale is high. There is a good opportunity for the proposed
business to enter the industry in locale since, there is still uncatered market
demand. In order to respond to the intensity of the competition, the proposed
business will actively post on social media platforms in order to boost the
engagement, the proposed business will also run promotions to attract customers .
Market Strategy
This market strategy discusses sales and distribution strategy, service
strategy, direct service, and order processing of the proposed business. Marketing
strategy is essential to the propose business as it will educate the prospects,
captures their attention and as well as creating a goodwill and public image.
Sales and Distribution Strategy
To ensure that customers will purchase the product, the strategy calls
for the creation and implementation of certain procedures, practices, and
policies. Its ultimate goal is to bring in money for the business.
Since the proposed business is driven with technology it will also
make the use of social media platform like Facebook and by creating its
personal website to further spread the quality of the proposed business can
offer.
Pricing Strategy
Pricing strategy is a method used by the business to establish the best price
for products. The proposed business will implement cost-based pricing, which is a
35
strategy for determining prices for goods and services in accordance with their real
costs. Cost-based pricing is a straightforward method of setting the price for a
product or service, where the selling price is determined by adding a markup to the
cost of production. This approach is widely used in various industries and is
especially common in manufacturing, retail, and service businesses. While it has
its advantages, cost-based pricing also has limitations and may not always be the
most strategic pricing method.
Table 13
Price List
Product Price
Chili Oil
(S) 4oz 60
(M) 6oz 120
(L) 8oz 170
Chili Garlic Oil
(S) 4oz 80
(M) 6oz 120
(L) 8oz 210
Advertising and Sales Promotion
This section outlines strategies to be adopted for establishing the proposed
business recognition connecting with target markets, to build loyal client base, vital
for the feasibility analysis of the proposed business in the industry. The proposed
business will utilize various sales and promotion tools in order to reach the market
and establish popularity of its existence.

36
Advertising
Tarpaulin. Traditional advertisements will also be utilized such as
Tarpaulin. The following information will be included in the tarpaulin ads:
The Entity’s business name, location, contact, information, prices, and
Promotions will be described and updated daily to deliver information to
Target markets. This will be installed in areas where many people can view
It, such as highways and busy streets. The proposed business will hang a
(5x6) size tarpaulin and will hang in Barangay Fatima, Bawing, Calumpang,
Jan Jose, and Tambler. Three weeks before to the proposed business’s
opening, the prospective business would post a tarpaulin to inform the
public, including bystanders, that a new business will be established in the
said location.
Social Media. The study acknowledged the increasing importance
of various social media platforms that allow users to share their thoughts
and ideas about a variety of subjects. To enhance Social media promotion.
The creators plan to market the same content through audiovisual
advertisements that highlight the shop name, address, phone number,
services, prices, and promotions. Additionally, the researcher takes into
account tarpaulin ads in order to attract clients from areas too distant from
the planned business site and from those without internet access. The
proposed business will boost its Facebooks upload per month

37
Sales Promotion
Implemented to attract new customers and hold onto the current
ones. In order to promote the services and attract customers, the proposed
business will give regular customers a discount.
Challenge: Create a post on Instagram or Facebook featuring your
favorite Obiedo chili oil and using the hashtag #ObiedoChiliOil. The post
must include a photo or video of you using the chili oil in a dish. As a token
of appreciation to our loyal customers like me, we’re offering an exclusive
25% discount on every purchase of #ObiedoChiliOil But act fast, this spicy
deal is limited to the first 50 customers.

38
CHAPTER IV
TECHNICAL ASPECT
This chapter addresses the proposed business’ technological feasibility and
the proposed location, comprising layout, vicinity map, and location review. This
chapter also shows the flow of products and the availability of resources,
equipment, and facilities for its equal operations.
Raw Materials
The products play a vital role in meeting the proposed business goals. The
ingredients of the products used in this proposed business can be purchased in
the supermarket, which is affordable and safe
Table 14
Raw material
Raw material Unit Cost Supplier

RM1. Measurement
Kilos Per120/kg
Unit Bagsakan Center
Chili peppers
RM.2 vegetable oil Kilos 79.41/kg Bagsakan Center
RM3.garlic Kilos 120/kg Bagsakan Center
Table 15
Product Specifications (Chili oil)
Quantity
Units Yield/Produced
Raw Materials Per Cost per bottle
Product Per Batch Per Hour
Production
Chili Oil RM1. Chili 3 s/ Batch
kilos 300 Oz of Chili Oil
peppers -15 bottles (4oz)  5
-20 bottle (6oz)  7
-15 bottles (8oz)  10
RM2.Vegetable 8 kilos 300 Oz of Chili Oil
oil -15 bottles (4oz)  9
-20 bottle (6oz)  13
TOTAL COST PER BOTTLE
Small 4
Medium 20
Large 27
39
Table 16
Product Specifications (Chili Garlic oil)
Quantity
Units
Raw Per
Yield/Produced Per Cost per bottle
Product Materials Production
Batch Per Hour
s/ Batch
Chili Garlic Oil RM1.Chili 2 kilos 300 Oz of Chili Oil  5
peppers -15 bottles (4oz)  7
-20 bottle (6oz)  10
-15 bottles (8oz)
RM2 6 kilos 300 Oz of Chili Oil  7
Vegetable -15 bottles (4oz)  11
Oil -20 bottle (6oz)  14
-15 bottles (8oz)
RM3.Garlic 2 kilos 300 Oz of Chili Oil  3
-20 bottle (6oz)  6
-15 bottles (8oz)
TOTAL COST PER BOTTLE
Small 15
Medium 23
Large 30
Technical Process
This section discusses the process of cooking and preparing the products
that will be served to customers. It serves as a basis and guide for determining
what materials and equipment are suitable for this proposed business. It also
includes the products and the correct way to prepare them, as well as information
on proper product handling and sanitation to ensure cleanliness and safety.
Table 17
Products’ Processes (Chili oil)
Standard Equipment/
Personnel
Procedure Allowable Machineries
Time used
1 minute Pryce Gas, Crew
Step 1. Wash the chili with clean water and
Pot &
strain to remove the water and put it in the
Food
Food processor and wait until it is fine.
Pcessor
40
Standard Equipment/
Personnel
Time used
Step 2. Put the chili in the pot and add oil 1 minute Pot Crew
and put it on the fire.
Step 3. Cook it in just the right flame and 60 Pot Crew
stir it until cooked. minutes
Step 4. And when it is cooked, let it cool for 58 Bottle Crew
an hour and it can be put in bottles. minutes
TOTAL 2 hrs
Table 18
Products’ Processes (Chili Garlic oil)
Standard Equipment/ Personnel

Time used
Step 1. Peel the garlic and then put it
in the food processor and continue to 5 minutes Blender Crew
process until it is fine.
Step 2. Wash the chili paper with
clean water and strain to remove the Food
5 minutes Crew
water and put it in the Food processor Processor
and wait until it is fine.
Step 3. Put the chili in the pot and
1 minute Pot Crew
add oil and put it on the fire.
Step 4. And when it has been put on
1 minute Crew
the fire for 20 minutes, put the garlic.
Step 5. Cook it in just the right flame 58 Wooden
Crew
and stir it until cooked. minutes Spoon
Step 6. And when it is cooked, let it
50
cool for an hour and it can be put in Bottle Crew
minutes
bottles.
Total 2 hrs
Service Flow
The service flow shows the process of obtaining the proposed
business’ products. It helps to have a smooth transaction and process
between the customer and the personnel. Also, service flow would affect
the markets’ support of the proposed business services, depending on how

41
fast and convenient the service process is for consumers. The figure shown
below is the illustration of how Obiedo Chili oil shop approaches and
entertains its customers.
Ordering of Products
Payment of the order/s
Packaging
Giving the products to

the customers
Exit
Figure 4. Service Flow
The service flow used by the proposed business starts with the
inquiries of the customers about the products offered to the personnel. The
staff will entertain customers’ queries by guiding them to the food menu and
specifications. The staff will let the customer decide whether to buy the
product or not. If yes, the staff will list the order(s) of the customers and
receive the payment automatically after the order has already been taken.
Presented below are the following steps in the service flow, including
the minute(s) it takes to complete the said process. The results would be
used as the total minutes consumed in the computation of the annual
practical capacity of the proposed business.

42
Table 19
Minutes Consumed in Service Flow
Service Flow Minutes Consumed Per

Process
Step 1 1 Minute
Step 2 30 Seconds
Step 3 30 Seconds
Step 4 20 Seconds
Total Minutes 2 Minutes And 20 Seconds
Consumed
Business Location
This section discusses the details of the location of the proposed business,
which is the Obiedo Chili Oil Shop. The location of the business is essential to
testing the feasibility of the proposed business. It identifies how marketable the
product is based on the number of consumers who can easily see and visit the
shop. Obiedo Chili oil shop considers various factors before choosing the business
location, such as household in General Santos City.
Location Map
The location is vital to the success of a business. Having the perfect
location will surely give the business a great advantage. This section will
show where the Obiedo chili shop will be available at same times of the day.
The researcher decided to put its proposed business in Fatima General
Santos City, which is very accessible to potential customers.
The figure on the next page shows the location of the proposed
business.
43
Figure 5. Location Map
This section illustrates the place of business and its neighboring
establishments. It also shows where the Obiedo chili garlic oil will be exactly
situated during the operation.
Vicinity Map
This section illustrates the place of business and its neighboring
establishment. The figure below shows the vicinity map of the proposed
business
Figure 6. Vicinity Map

44
Layouts
Layout refers to the physical arrangement of production facilities. It
is the configuration of departments, work centers, and equipment in the
conversion process. It is a floor plan of the physical facilities that are used
in production. This part shows the site development of the Obiedo Chili oil
shop business. It specifically shows the overall view along with the details
regarding the appearance of the proposed business.
The layout of the business illustrates the design chosen by the
researcher, which will be the layout of the owner of the proposed business,
showing the area or space, the machine arrangements, the personnel’s
area, and other facilities. The design chosen is the evaluated design of the
researcher, which considers building safety, attractiveness, arrangements
for fast services, and most importantly, customers’ comfort.
Figure 7 presents the floor plan proposed by the business. It
illustrates the total area accumulated by the premises, which will determine
the total capacity that the business can accommodate considering the
dimensions of the furniture and fixtures, equipment and machinery used by
the business, and the identified personnel areas as well. The proposed
business will be renting space along with the building, as presented in the
illustration.
The figure on the next page shows the floor plan of the proposed
business.
45
Figure 7. Floor Plan
In Figure 8 shows the perpective view of the Obiedo Chili Oil Shop
business located in Fatima General Santos City.
Figure 8. Perspective View

46
Capital Expenditures, Sources, Estimated Cost, and Contracts.
The proposed business will be renting space in Fatima. The business will
not spend money on the establishment. However, the business will incur some
expenses for the shop, which are charged to leasehold improvement. It is
depreciated over its useful life. The shop will be constructed by RLJT Engineering
Works, Inc. Construction Company, with a total estimated cost of P299,943.00.
Table 20
Leasehold Improvement
Description Amount
I. Excavation and Embankment 8,694
II. Structural Works 84,766.50
III. Architectural Works 36,949.50
IV. Masonry Works 16,301.25
V. Interior and Exterior Painting works 14,127.75
VI. Structural steel and roofing works 21,735
VII. Electrical Works 15,214.50
VIII. Sanitary and Plumbing 19,561.50
Total Materials 217,350
Labor Works 82,593
Total Projected Cost 299,943
Equipment, Furniture and Fixture, and Supplies used in the production
In this section, the proposed business will show what machinery. And
equipment, furniture and supplies that are needed to operate. These resources
can be purchased locally.
Machinery
This section presents all the machinery needed for the operation. To
have fast and easy production, better quality and modernized machines are
47
necessary. It is depreciated over its useful life. The depreciation expense
recognized annually will be charged to factory overhead.
Table 21
Machine Specifications
Item Descriptions/s Price/ Qty Estimated Suppliers

pecifications Unit useful life
Food •Binzap 6L Food 22,500 1 10 years KCC Mall
processor processor of Gensan
Chopper mincer
Grinder
•1,000 W
Production Equipment
This section presents the equipment needed used in the production.
The table below shows the following equipment use for production.
Table 22
Production Equipment
Item Description/ Price Qty Estimated Suppliers

specifications unit useful life
Wooden A board is used 200 1 5 years KCC Mall of
Cutting when slicing and Gensan
Board chopping
Colander Strain to remove 120 1 3 years KCC Mall of

the water Gensan
Brand: stainless
Steel: colander
strainer
48
Item Description/ Price Qty Estimated Suppliers

specifications unit useful life
Boiler This will be used 3,850 2 10 years KCC Mall of
kaldero to cook the chili Gensan
oil.
Boiler 27.3CM
big size makapal
heavy duty
Burner Heavy Duty Gas 899 2 5 years KCC Mall of
Gensan
Stove c-14
Production Supplies
This section presents the supplies needed to conduct the operation.
These supplies are used in production but not consumed in the
manufacturing process. The supplies used are recognized as product costs
and are charged to factory overhead. These include a bottle per size.
Table 23
Product Supplies
Supplies
Annual Price Quantity/per
Items Description
per box month
Bottle (4 oz.) Product 150 per box 221boxes KCC Mall
Container 24 pcs of Gensan
49
Supplies
Annual Price Quantity/per
Items Description
per box month

Apron It use to 150 24 pcs KCC Mall

wear to of Gensan
protect from
the mess
while
cooking the
chili oil
Gloves Gloves use 200 2 boxes (100 KCC Mall
handing PCS) of Gensan
product in a
safe
contaminate
free and
additive free
manner
Wooden Big wooden 200 6 KCC Mall
turner will of Gensan
Turner
be used to
cook chili oil
Equipment, Furniture and Fixtures, and Supplies used for administrative and
selling activities
Office Equipment
This section presents the equipment needed to conduct the
operation, including other tools and devices needed in the establishment of

50
the proposed business. The table below shows the following equipment use
for operation.
Table 24
Equipment specification
Item Description / Price / Unit Estimated Estimated Suppliers

Specification Quantity useful life
CCTV Video 980 2 5 years Mall.Ph

Camera Captureesolu Shop
V380 tion1080p
Bulb *Frame Rate:
60fps
Memory Card
Type: Micro
SD
Electric EUREKA By 1,700 1 5 years KCC Mall

Fan Winland of Gensan
18Inch
Industrial
Stand Fan
Electric Fan
70Watts
EISF- 18B 2
PC’s
Fire Affordable 1,800 1 2 KCC Mall
Extinguis fire of Gensan
her extinguisher
for Homes,
Offices,
Buildings,
Warehouse
s, Cinemas,
Factory, etc
51
Item Description / Price / Unit Estimated Estimated Suppliers

Specification Quantity useful life
Cash • Machine to 10,000 1 10 years Imperial

Register record sales Plaza
of the Appliance
products
and creates
receipts
20W,
410*380*25
0mm, No
need ink
Furniture and Fixtures
These section presents the furniture and Fixtures use for the
proposed business. It is the foundation of comfort and functionality of the
proposed business chili oil shop. The table below shows the furniture and
fixtures.
Table 25
Furniture and Fixtures specification
Item Description / Price / Estimated Estimated Suppliers

Specification Unit Quantity useful life
Plastic stool A tool used to 400 2 5 years KCC
Chair rest the Mall of
employees Gensan
when
there’s no
order.
• Brand uratix
52
Hanging Cabinet Hanging 1,700 1 20 years Matt’s

cabinet for Furniture
storing things and
like chili oil Display
bottles and Center
so on.
Product display Product 2,500 1 15 years Matt’s

display here Furniture
the chili and
products for Display
sale will be Center
placed
Shop supplies
This section outlines the essential shop supplies required to facilitate
the seamless operation of the proposed chili oil shop. The table below
shows the shop supplies of the proposed business.
Table 26
Supplies Specification
Descriptions/ Price/ Estimated

Item Suppliers
specifications Unit quantity usage
Hand An automatic 80 24 KCC Mall
Sanitizer alcohol of Gensan
dispenser, placed
beside
the cashier
Sando Bag Use to pack the 15 77 KCC Mall
(Small) chili oil bottles that of Gensan
the costumer
bought
Receipt Special fine paper 20 50 Kristan
Sheets placed in cash
register or POS Bookstore
that prints receipts
53
Descriptions/ Price/ Estimated

Item quantity usage Suppliers
specifications Unit
Ballpen Ball pen to use for 5 12 Kristan
writing the bookstore
transition in the
proposed business
Record book A book contains 120 2 Kristan

record of bookstore
transaction that are
being maintained
the business
Spin mop Map well be use 300 1 KCC Mall
when cleaning the of Gensan
shop
Cleaning supplies
This section outlines the cleaning supplies use for the proposed
business. The cleaning supplies helps maintain the cleanliness and hygiene
of the facility.
Table 27
Cleaning supplies
Items Description Price Qty Supplier

Dishwashing Dishwashing liquid 90 12 KCC Mall
liquid Soap to use on of Gensan
Washing things used in
cooking
54
Items Description Price Qty Supplier

Hand Soap Soap which will be used 120 12 KCC Mall
in the washing area Of Gensan
Trashcans Container of garbage 160 2 KCC Mall

of Gensan
Utilities
Utilities are significant elements for the business to operate and serve its
customers. Electricity and water supply will then be supplied by South Cotabato II
Electric Cooperative, Inc. (SOCOTECO II) and General Santos Water District,
respectively.
Electricity Consumption
Electricity is essential to the operation of the business. Electricity
usage will come from machinery used to produce and store food products.
Overusing electricity is not a good idea, for it could add additional expenses
to the business. Shown in the next page is the table for electricity
consumption of the proposed business.

55
Table 28
Electricity Consumption
Number of Annual
No. of Divide Rate per
Particulars Quantity Wattage Hours use Total KWh Utilities
Days 1,000 kilowatts
in a day Expense
CCTV camera 2 20 24 365 350,400 1,000 350 9 3,154
Electric fan 1 70 8 265 148,400 1,000 148 9 1,336
Cash Register 1 20 8 265 42,400 1,000 42 9 382
Light Bulb 2 9 8 265 38,160 1,000 38 9 343
Wifi router 1 9 8 265 19,080 1,000 19 9 172
TOTAL 5,214
Water consumption
Water supply plays a role in the business ability to maintain sanitation
and cleanliness. Water consumption in the proposed business comes from
washing the dishes, equipment, and hands for sanitary purposes. Show
below is the table for the water consumption.
Table 29
Water consumption
Monthly
Price No. of
Water Annual
per month
Particulars Consumption Water
Cubic in a
per Cubic Expense
Meter years
Meter
Sink 1 212 12 2,544
Comfort
1 212 12 2,544
room
Total 5,088
Internet
PLDT will provide the business with Internet connectivity. A fixed
monthly internet fee will be paid, amounting to P1,900. It will be utilized in
several internet transactions, including client queries and online purchases.

56
The proposed organization would be unable to function successfully without
it. In addition, it will be utilized to explore different websites for new products
launched in the market.
Table 30
Telephone and Internet Service
Particular Monthly Cost
Internet and Telephone 1,900
Gas Consumption
Gas supply plays a role to the proposed business. It is use for
cooking the products to serve the customers. The table on the next page
shows the Gas consumption for the proposed Business.
Table 31
Gas consumption
Annual
Particulars Quantity Month Frequency Cost
Gas tank(acquisition) 2 2,480 1 4,960
Gas tank(refillable) 2 980 11 21,560
Total 26,520
Grand Total 45,600
Waste Management
In setting up a chili oil shop, waste management becomes a pivotal aspect
of maintaining sustainability. The venture must diligently adhere to environmentally
conscious practices. With a focus on utilizing biodegradable packaging for the oils,
57
the shop can significantly minimize its environmental footprint. Adopting efficient
recycling methods for glass or plastic containers used in packaging could further
enhance waste reduction efforts. Proper disposal and recycling protocols for any
organic waste generated during the production process are essential, ensuring that
composting or suitable disposal methods are in place. Implementing a waste
segregation system within the premises will not only streamline waste disposal but
also enable the sorting of recyclable materials, contributing to an eco-friendlier
operation. Constant evaluation and adjustment of waste management strategies
will be imperative to align with evolving sustainability standards and practices.

57
Chapter V
MANAGEMENT AND ORGANIZATION ASPECT
This chapter presents the type of business organization, the structure, job
description and the job specification of the personnel, a table for salaries and
wages, and Gantt chart for various activities to be done before the actual
operation.
Form of Business Organization
The Form of Business Organization of the Proposed Business is sole
proprietorship. An unincorporated firm owned and operated by one person is
known as a sole proprietorship. It is the most straightforward type of business
structure because the owner and the company are not legally distinct. It is
sometimes referred to as sole proprietorship, individual entrepreneurship, or just
proprietorship. (Gabriel Lip, 2023)
The advantage of being a sole proprietorship is that it is a form of
business that is generally easy and inexpensive unlike forming a partnership or
corporation. There is comparatively less paperwork that a proprietor must submit
to their local government as compared to other business forms. Owners don’t
have to wait very long to receive authorization to operate a business as a result.
In addition, there is a low start-up fee, aligned with many government policies
that encourage entrepreneurs to take a risk and grow the economy by minimizing
the friction of starting new businesses. (Gabriel Lip, 2023)

58
Organizational Structure
The organizational structure of the proposed business is a flat structure
which smallest businesses use to centralize their activities. A flat organizational
structure doesn’t have multiple layers of management or formal departments.
Instead, it is a straightforward organizational structure that typically has a single
owner who assigns work to staff members directly. Employees in the simple
structure only report to the leader when they complete duties because there are
no management staff members present. (Indeed, 2022)
The figure below shows the Organizational Structure of the proposed
business which is Chili Oil Shop.
MANAGER/OWNER
CASHIER PRODUCTION
STAFF
Figure 9. Organizational Structure
Personnel Qualifications
For the success of the business, the proposed business will hire
applicants who are qualified for their desired certain position. The following are
the qualifications of the aspiring applicants in order to start the operation of the
proposed business. The owners should set qualifications and standards as the
59
basis of selecting applicants. Shown below are the detailed description and
qualifications of the required workforce
Table 32
Personnel Qualifications
Position No of person Qualifications
Production Staff 2 •Cooks chili garlic oil and chili oil

products.
At least Senior High school graduate
• Must be 18 years old and above
• Male or Female
• Single or Married
• With or without experience
• Ability to handle transactions
Cashier 1 • Ability to handle transactions
At least Senior High school graduate
• Must be 20 years old and above
• Male or Female
• Single or Married
• With or without experience
Personnel Duties and Responsibilities
Personnel Management is that part that which is primarily concerned on
providing and maintaining a satisfied workplace for the human resource of the
organization. Identifying the roles and responsibilities of the personnel is
important in avoiding duplication of work. The following are the duties and
responsibilities of every personnel to be hired in the proposed business, chili oil
and Chili garlic oil.
The followings are the duties and responsibilities of the personnel of the
proposed business to ensure quality and effective outcome at work.

60
Production Staff
 Cooks chili garlic oil and chili oil products.
 Purchase raw materials such as Vegetable oil, Chili peppers, Garlic and
other raw materials needed for production.
Cashier
 Collect payments from customer, Issues receipts, refunds and change to
clients
 Greets clients and Entertains customers and asks what product/s to avail.
 Answer customer’s inquiries and provide recommendations
 Generates reports for submission to the manager.
 Assists in other tasks like cleaning, organizing displays, etc.
 Performs other tasks that maybe assigned by the management.
Personnel Salary Structure
Salary is given to personnel in exchange for the services they have
provided to the proposed business. Employee are hired for a particular number of
hours per day and are expected to complete the hours required to do the job to a
satisfactory standard. Specifically, the cashier will work eight (8) hours a day.
Table 33
Salary Structure
Basic
No. of Total Net Monthly
Personnel Monthly SSS PHIC HDMF
Employees Deduction Pay
Salary
EE EE EE
Production Staff 2 4,000 4,000
Cashier 1 10,478 945 236 200 1,381 9,097
Total 945 236 200 1,381 13,097
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Employee will work eight (8) hours a day. Salary for Cashier is based on
the minimum wage of 403 for the retail or service establishment multiplied by the
number of working days. This wage is set by the National Wages and
Productivity Commission. The 13th month pay is also provided to employee.
Pre-Operating Activities
The proposed business will conduct a scheduled series of activities that
are essential for the business to operate effectively. It ensures that the business
idea is viable and finds opportunities that will make it successful. It consists of the
following: feasibility study, renovations of the building, processing of the business
permits and licensee, hiring and training of personnel of the proposed business
and, opening of the business.
Conducting of Feasibility Study – the researcher will conduct a
feasibility study that aims to analyze the viability of the proposed venture in the
said location. It will tackle all the aspects regarding how the proposed business
will be established and the things that are essential for the proposed business in
order to operate it effectively. It includes the financial aspect, marketing aspect,
and types of products and services that the proposed business will offer. The
conducted feasibility study will have a span of 2 months.
Leasehold improvement – the proposed business will build its own
building suitable for the chili oil shop. The construction of the building will take
only three (3) months since the shop is small at first.
Securing Business and Licenses Permits – this part of the activity will
consume one (1) month after conducting the feasibility study. This will serve as
62
the legal document for the proposed business to operate without having legal
issues with the government. Moreover, it can boost the proposed business’s
credibility and freely market its brand everywhere.
Acquisition of the Equipment and Furniture & Fixtures – the proposed
business will purchase and acquire necessary equipment, and furniture & fixtures
within one month which are needed to operate the said venture effectively.
Purchasing of the Supplies – the proposed business will purchase and
acquire necessary for the proposed business within one week which are needed
to operate the said venture effectively.
Hiring and Training of Personnel – the proposed business will allot 2
months in hiring and training thoroughly those aspiring applicants to provide
manpower for the success of the said venture.
Promotion of the business – the proposed business will dedicate its time
in promoting the business through tarpaulin and social Media. To encourage
potential customers of the proposed business and also for the business to be
known and established popularity.
Opening of the Business – after the completion of all the aforementioned
steps, the proposed business will officially start its operation and fulfill its mission
and vision for future success.
The Time Table (Gantt Chart)
The timetable will contain lists of schedules to be followed by the
researcher of the proposed business in order to easily analyze and map out the
plan. The owners should know the amount of time required in a specific activity to
63
shun any duplication of works which incurs additional expenses. Below is the
Gantt chart of the proposed business, Chili Oil Shop
Table 34
Time Table
Activities Month
1 2 3 4 5 6
Conducting feasibility study
Construction of leasehold improvements
Securing Business and Licenses Permits
Hiring and Training of Production Staff
Purchasing of the Supplies
Acquisition of Equipment and Furniture & Fixtures
Promotion of the Business
Opening of the business
The projected time-table is relevant in the overall management of the
business, directing its pre-operating activities. The table above presents the
projected time-table for the proposed business. The business is estimated to
start at the end of the Six (6) months.

64
Chapter VI
FINANCIAL ASPECT
This chapter examines the profitability of the proposed business. It
includes the evaluation of the financial data of the company. It also covers
valuable information on the total project cost, initial capital requirements, source
of funding, financial statements, and financial analysis.
Financial Assumptions
The financial assumptions that will be established in this segment will be
implemented by the proposed business towards its financial related issues. The
data that will be presented in this part was based on the data gathered by the
researcher through interviews and on existing standard measurement within the
industry.
Revenue
This part of the study discusses the financial assumption of the
proposed business concerning on the revenues that gone through a
thorough computation
1. All sales of the proposed business will be cash basis.
2. Sales revenue will increase by 5% annually starting from its second
year of operations.
3. The proposed business will be operating at 80% practical Capacity.
Expenses
This part of the study discusses the financial assumptions towards the
examining of expenses of the proposed business.

65
1. Finished goods manufactured is equal to finished goods sold during
the year.
2. All expenses are paid in cash except the depreciation expenditure.
3. Cost of good sold will increase by 5% each year
4. It is expected that all government-related expenses will remain
constant over a period of five years.
5. SSS, Pag-Ibig and PhilHealth contribution will be paid every first week
of the following the applicable month.
6. Monthly direct material will be purchased every first week of the month.
7. Utilities expense are classified as period cost will increase by 5% on
the following year.
8. Straight line method will be used in calculating the depreciation
expense of the equipment, respectively.
9. Leasehold Improvements are amortized over their estimated useful life.
10. Pre-operating expenses start-up promoting the business through
tarpaulin and social media cost, are charged to expense.
11. Supplies expense will increase by 5% every year
12. Advertising Expenses will increase by 2% annually.
13. Salaries and wages will remain consistent for the next following years
14. 13th month pay will be provided to the personnel.
15. Rent expenses will be constant from the first year of operation and in
the following years.

66
16. Expenses for permits and licenses will be assumed constant over the
next five years for simplicity.
17. Repairs and maintenance will be 3% of the Asset’s Historical cost and
will increase by 5% each year due to inflation.
Others
This portion of the study states the financial assumptions that may
affect the other sections of the projected financial statements of the
proposed business.
1. The income tax expense is computed based on 2024 income tax table.
2. The rate used in computing percentage tax of the business would be
3% on the gross sales.
3. The business will withhold 5% withholding tax on gross rentals, as
covered by the expanded withholding tax system.
4. The lease contract requires two (2) months advance rent and one (1)
month security deposit.
5. The business will be subjected to Income taxes and it will be paid
every first month of the succeeding quarter.
6. 5% of the inventory remained on hand at year end.
Initial Capitalization
Initial capital is often an investment for a business it is the money that will
be used to start the operation of the business. The proposed business has a total
capitalization of 407,707. This initial investment will be subject in acquiring

67
machineries and equipment, supplies, furniture and fixtures, inventories and
other important expenses in establishing the proposed business.
The table below shows the amount of investment invested in the proposed
business.
Table 35
Projected Investment Cost
Particulars Cost
Leasehold Improvement 299,943
Inventories 2,319
Machine & Equipment 46,779
Production Supplies 9,416
Supplies 5,085
Furniture And Fixture 5,000
Advertising Expense 8,000
Security Deposit 10,000
Prepaid Rent 20,000
Permits And Licenses 1,165
Total Investment Cost 407,707
Sources of Financing
The potential owner will contribute 407,707 toward the overall investment
from personal assets. The researcher assumes that the potential owner has the
resources to make the necessary investment; as a result, borrowings will not be
necessary.
Capital Structure
Equity-financed will be the capital structure of the proposed venture
wherein the owner will serve as the resources of all the funding of the
proposed business. To finance the operation, personal asset of the owner
will be the sources of all the investments towards the proposed venture.
68
Consequently, the capital structure of the proposed venture percentage
will be 100% that comes from owner’s equity/distribution. On the flip side
risk is inevitable and weighted average cost of capital would be higher by
utilizing the structure.
Cost of Capital
The return a business needs to undertake a capital project is
represented by the cost of capital. The planned business’s cost of capital
is split equally between assets and equity,
Projected Financial Statements
In this part of the study presents the data about the financial statements of
the proposed venture. Financial statements aim to provide helpful data that will
be utilize by a large array of people as well as it will serve as an important role
specifically in making crucial decision of the users. Balance Sheet, Income
Statement, Cash Flows, and Changes in Owner’s Equity are the statements that
will be presented in this part.
Projected Statement of Financial Performance
This part of the study presents the financial performance of the
proposed venture. A statement of financial performance is one of the
major factor in the venture, since it provides data about realized earned
revenue and expenditures incurred to examine the profitability of the
proposed venture over a given period of time. The table in the next page
shows the summary of projected statement of financial performance.

69
Table 36
Summary of Projected Statement of Financial Performance
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Sales 1,779,164 1,868,122 1,961,528 2,059,605 2,162,585

Cost Of
Sales 528,826 555,267 583,031 612,182 642,791
Gross Profit 1,250,338 1,312,855 1,378,497 1,447,422 1,519,793

Total
Operating 418,062 423,542 429,291
435,323 441,585
Expense
Income
Before Tax 832,276 889,313 949,206 1,012,099 1,078,209
Income Tax 108,955 120,363 132,341 144,920 158,142

Income
After Tax 723,321 768,950 816,865 867,179 920,067
Projected Statement of Financial Position
This part of the study shows the overall financial state of the
proposed venture. Controlled asset, owned liability, and the owner’s equity
of the business on specific dates will be shown. The objective of balance
sheet is to provide insights from the trend or state how volatile its
condition. As well as income statement and cash flow statement, the
balance sheet will play a huge factor in determining the venture’s current
financial position.
The researcher visualized a five-year financial state of the
proposed venture including the assets (current and noncurrent), liabilities,
and owner’s equity at the year-end. Further detailed figures of this
statement on exhibit portion of this study.

70
Table 37
Summary of Projected Statement of Financial Position
Particular Year 1 Year 2 Year 3 Year 4 Year 5

s
Assets
Total
Current 477,458 891,842 1,330,359 1,794,218 2,284,719
Assets
Total Non-
Current 335,333 308,943 282,554 256,164 229,775
Assets
Total 2,514,494
Assets 812,791 1,200,785 1,612,912 2,050,382
Liabilities And Owner's Equity
Total
Liabilities 43,423 46,942 50,637 54,518 58,595
Owner's
Equity 769,368 1,153,843 1,562,275 1,995,865 2,455,898
Total
liabilities 812,791 1,200,785 1,612,912 2,050,382 2,514,494
and
capital
Projected Statement of Cash Flows
This part of the study mapped out the cash flow activities of the
proposed venture including operating, investing, and financing. The data
set of cash inflows and outflows during the operation of the venture can be
seen in the statement of cash flows. And also it provides liquidity of the
venture accordingly over a given period of time. To add, it also determines
the ability of the proposed venture in generating cash to fulfill its
obligations and to stabilize its operation for a bright future ahead. Table
below shows the 5-year cash flow summary statement that depicts
71
movement of cash in operating, investing, and financing activities of the
proposed venture.
Table 38
Summary of Projected Statement of Cash Flows

Cash income 749,710 795,340 843,254 893,569 946,457
Net cash provided by
745,300 797,467 845,488 895,915 950,615
operating activities
-361,722
investing activities
46,047 -384,475 -408,432 -433,590 -460,034
financing activities
Net
increase/decrease in 429,625 412,992 437,056 462,325 490,581
cash
Add: Cash,
429,625 842,617 1,279,673 1,741,998
beginning
Cash, ending 429,625 842,617 1,279,673 1,741,998 2,232,579
Chili Oil Shop has a positive cash flow. As indicated in the table
above, a company's assets are increasing, allowing it to satisfy
obligations, reinvest in its operation, return money to shareholders, pay
expenditures, and establish protection against potential financial issues.
Projected Statement of Changes in Equity
This part of the study describes the changes in the owner’s capital
that leads to profit and losses. It also elaborates the state of money or
fund that was spent towards the proposed venture.
From 1 year to year 5 the capital is increasing, which concludes
that the items that make the equity increased constitute more than items
that make the equity decreased. Table on the next page shows the
72
summary of Projected Statement of Owner’s Equity over the span of 5
years.
Table 39
Summary of Projected Statement of Changes in Equity

Capital Beginning 407,707 769,368 1,153,843 1,562,275 1,995,865
Add: Profit 723,321 768,950 816,865 867,179 920,067
Less: Withdrawal 361,660 384,475 408,432 433,590 460,034
Capital End 769,368 1,153,843 1,562,275 1,995,865 2,455,898
As presented in the table, the owner’s equity increased. Chili oil
Shop chooses to use its profits to invest internally in its business rather
than hold them as cash, so equity rises.
Financial Ratio and Analysis
This part of the study, the researcher utilized ratio analysis that includes
liquidity ratio, profitability ratio, the solvency or stability ratio and period,
discounted cash flow adequacy, and investment analysis through payback period
and internal rate of return system in determining the financial performance,
position and cash flows of the proposed venture.
This is a system of evaluating the finances of the venture through which
the connection between the figures found in the Statement of Financial
Performance, Statement of Financial Position, and Statement of Comprehensive
Income are being indicated.
Liquidity Ratios
Liquidity ratio analysis helps in measuring the short-term solvency
of a business. In other words, it aids in assessing a company's capacity to

73
fulfill its short-term obligations. Therefore, liquidity refers to how rapidly a
company's assets are transformed into cash.
Current Ratio
The current ratio specifies in which current liabilities are
covered by the current assets that soon will be converted to cash.
The table below presents the table of current ratio analysis of the
proposed venture.
Table 40
Current Ratio
Current Current
Year Current Ratio
Assets Liabilities
Year1 477,458 43,423 11.00
Year 2 891,842 46,942 19.00
Year3 1,330,359 50,637 26.27
Year4 1,794,218 54,518 32.91
Year 5 2,284,719 58,595 38.99
The computation to get the current ratio is through dividing
the current assets by the current liabilities.
Solvency Ratios
The solvency ratio calculates a company's earnings concerning its
liabilities. An analyst or investor can determine whether a company will
continue to pay its debt commitments by reading the solvency ratio. A
higher or stronger ratio indicates financial strength.

74
Debt-To-Equity Ratio
A debt-to-equity ratio measures the degree to which a
company finances its operations with debt rather than resources.
The projected statement of debt-to-equity ratio for the proposed
business is shown in the table below.
Table 41
Debt-to-Equity Ratio
Debt to Equity
Year Total Liabilities Equity
Ratio
Year1 43,423 769,368 0.06
Year 2 46,942 1,153,843 0.04
Year3 50,637 1,562,275 0.03
Year4 54,518 1,995,865 0.03
Year 5 58,595 2,455,898 0.02
Debt Ratio
Debt ratio analysis, defined as an expression of the
relationship between a company’s total debt and assets, is a
measure of the ability to service a company’s debt.
Table 42
Debt Ratio
Year Total Liabilities Total Assets Ratio

1 43,423 812,791 0.05
2 46,942 1,200,785 0.04
3 50,637 1,612,912 0.03
4 54,518 2,050,382 0.03
5 58,595 2,514,494 0.02
75
Debt ratios of 2.62 or lower are considered better, while a
debt ratio of 0.6 or higher makes it more challenging to borrow
money. While a low debt ratio suggests greater creditworthiness,
there is also risk associated with a company carrying too little debt.
Profitability Ratios
A company’s ability to profit from its sales, operations, assets on
the balance sheet, or shareholders’ equity is evaluated by profitability
ratios. Profitability ratios show how successfully a business produces profit
and value for shareholders.
Return on Equity
The return on equity, or simply net margin, measures how
much net income or profit is generated as a percentage of revenue.
Table 43
Return on Equity
Year Net Income Owner's Equity Return On Equity

Year1 723,321 769,368 94%
Year 2 768,950 1,153,843 67%
Year3 816,865 1,562,275 52%
Year4 867,179 1,995,865 43%
Year 5 920,067 2,455,898 37%
The profit margin ratio is computed by dividing net income
into the total sales of the business. The ratios each year is
somehow higher, as the business incurred lower operating
expenses. It can also be seen that ratios are climbing higher each
76
year because of the assumption that sales are increasing at a rate
of 10% while some operating expenses remain constant.
Return on Total Assets
This illustrates the ratio of the net income towards its total
assets. This financial statement determines the percentage of the
net income/operational outcome in the total assets of the venture.
The Table below shows the Return on Total Assets.
Table 44
Return on Total assets
Return On
Year Net Income Total Assets
Assets
Year1 723,321 812,791 0.89
Year 2 768,950 1,200,785 0.64
Year3 816,865 1,612,912 0.51
Year4 867,179 2,050,382 0.42
Year 5 920,067 2,514,494 0.37
The return on total assets is calculated by dividing net
income into total assets, which measures the extent of income
considering the total assets of the business. It can also be seen
that ratios are getting higher each year, indicating a higher return
on total assets as the business operation continues.
Capital Investment Analysis
An investment analysis is a look back at previous investment decisions
and the thought process of making the investment decision. This section involves
examining and assessing economic and market trends, earnings prospects,

77
earnings ratios, and various other indicators and factors to determine suitable
investment strategies.
Payback Period
This is the length of time required to recover the cost of an
investment. The table below shows the computation of the payback period
Table 45
Payback Period
Operating Unrecovered
Particulars
Cash Flows Cost
Year 0 407,707
Year 1 745,300
Year 2 797,467 -
Year 3 845,488
Year 4 895,915
Year 5 950,615
The proposed business gives approximately 7 months to recover
from its investment. Hence, the proposed business will be profitable and
can generate cash from its operation equal to owner’s investment only for
a short period of time.

78
Chapter VII
SOCIO-ECONOMIC ASPECT
This chapter discusses the benefits of the proposed business to society
and the economy. It assesses how the community will be benefitted and
examines how the proposed business will change the current and future events
of the community.
Benefits to the Society
The benefits of the proposed venture in the society are the following:
Supporting Local Agriculture
If the business sources its chili peppers locally, it can support local
farmers and agriculture. This helps in strengthening the local economy,
creating job opportunities, and fostering community resilience.
Introduce New Brands
Introducing Obiedo Chili oil shop, a new brand of chili oil shop that
specializes in crafting premium chili-infused products to tantalize taste
buds and elevate culinary experiences. At Spice Fusion, customers can
indulge in two signature offerings: classic chili oil and zesty chili garlic oil.
Each product is meticulously crafted using a blend of high-quality chili
peppers, aromatic spices, and premium oils to ensure exceptional flavor
and versatility. Discover the perfect balance of heat and flavor with Spice
Fusion’s range of artisanal chili oils, and transform ordinary meals into
extraordinary culinary adventures.

79
Social Responsibility
The proposed chili oil shop is dedicated to supporting local
agriculture by providing chili farmers with high-quality seeds once a year.
This initiative empowers farmers to grow robust chili crops, enhancing
their livelihoods and ensuring a consistent supply of fresh, locally-sourced
ingredients. By fostering economic stability and environmental
sustainability, the business contributes to a resilient agricultural sector and
the overall well-being of the community.
Benefits to the Economy
The introduction of new brands can contribute positively to the economy in
several ways. Firstly, it fosters entrepreneurship and small business growth,
creating job opportunities and stimulating local economic activity. As the brand
gains traction, it can generate revenue not only through direct sales but also by
attracting customers to surrounding businesses, such as Household, restaurants
and grocery stores. Additionally, the production and sale of chili oil require the
sourcing of ingredients, packaging materials, and other supplies, thereby
supporting various sectors of the supply chain. Moreover, successful chili oil
business will expand the market reach through exports, bolstering international
trade and promoting economic competitiveness.
Economic Growth
A successful business contributes to the overall economic growth of
the region by attracting customers, increasing consumer spending, and
stimulating other businesses in the vicinity.

80
Job Creation
Establishing a new business requires staff for various roles such as
attendant/cashier and managers. This contributes to reducing
unemployment rates and providing individuals with stable employment
opportunities.
Local Sourcing
Utilizing Chili peppers as a primary ingredient supports local
farmers and suppliers. This can stimulate the local agricultural economy
and encourage sustainable farming practices.
Innovation and Entrepreneurship
The introduction of a new culinary concept encourages innovation
within the Chili Oil industry and inspires other entrepreneurs to explore
similar ventures. This fosters a culture of entrepreneurship and creativity,
driving further economic development.
Diversification of chili oil Options
Adding chili garlic oil to the market diversifies the available chili oil
options, catering to a broader range of dietary preferences and
contributing to culinary diversity within the community.
Health and Wellness
Chilli oil contains capsaicin, a compound that has been shown to
reduce inflammation and improve blood circulation. This can help protect
against heart disease, stroke, and other cardiovascular problems. Weight
loss: Chilli oil can boost metabolism and help burn calories.
81
Community Engagement
The business can engage with the local community through events,
promotions, and partnerships. This fosters a sense of belonging and
strengthens community ties, contributing to social cohesion and resilience.

EXHIBITS
xxi
EXHIBIT 1
OBIEDO CHILI OIL SHOP
PROJECTED STATEMENT OF FINANCIAL PERFORMANCE
Schedule
Particulars No. Year 1 Year 2 Year 3 Year 4 Year 5
Sales 1 1,779,164 1,868,122 1,961,528 2,059,605 2,162,585
Cost of sales 2 528,826 555,267 583,031 612,182 642,791
Gross profit 1,250,338 1,312,855 1,378,497 1,447,422 1,519,793
Less: Operating expense
Salaries expense 3 136,214 136,214 136,214 136,214 136,214
Transportation expenses 4 2,400 2,520 2,646 2,778 2,917
SSS contribution expense 5 11,964 11,964 11,964 11,964 11,964
Philhealth contribution
expense 5 2,829 2,829 2,829 2,829 2,829
Pagibig contribution expense 5 2,400 2,400 2,400 2,400 2,400
Supplies expense 6 5,085 5,339 5,606 5,887 6,181
Advertising expense 7 8,000 8,160 8,323 8,490 8,659
Depreciation expense 8 23,040 23,040 23,040 23,040 23,040
Utilities expense 9 33,102 34,757 36,495 38,320 40,236
Repairs and maintenance 10 9,558 10,036 10,538 11,065 11,618
Rent expense 11 120,000 120,000 120,000 120,000 120,000
Business permit and license 12 2,944 3,033 3,127 3,225 3,328
Miscellaneous expense 13 7,151 7,206 7,264 7,324 7,321
Percentage tax expense 14 53,375 56,044 58,846 61,788 64,878
Total Operation Expense 418,062 423,542 429,291 435,323 441,585
Net Income Before Tax 832,276 889,313 949,206 1,012,099 1,078,209
Less: Income tax 15 108,955 120,363 132,341 144,920 158,142
Net Income 723,321 768,950 816,865 867,179 920,067
xxii
EXHIBIT 2
PROJECTED STATEMENT OF FINANCIAL POSITION
Assets Sched. No. Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets
Cash And Cash Equivalents Exh.3 429,625 842,617 1,279,673 1,741,998 2,232,579
Inventories 16 27,833 29,225 30,686 32,220 32,140
Prepaid Expenses 17 20,000 20,000 20,000 20,000 20,000
Total Current Assets 477,458 891,842 1,330,359 1,794,218 2,284,719
Non-Current Assets
Property Plant And Equipment 18 351,722 351,722 351,722 351,722 351,722
Accumulated Depreciation 19 -26,389 -52,779 -79,168 -105,558 -131,947
Security Deposit 20 10,000 10,000 10,000 10,000 10,000
Total Non-Current Assets 335,333 308,943 282,554 256,164 229,775
Total Assets 812,791 1,200,785 1,612,912 2,050,382 2,514,494
Liabilities And Owner's Equity
Liabilities
SSS Premium Payable 21 1,469 1,469 1,469 1,469 1,469
Phic Premium Payable 21 472 472 472 472 472
Pag-Ibig Premium Payable 21 400 400 400 400 400
Income Tax Payable 22 27,239 30,091 33,085 36,230 39,535
Expanded Withholding Tax Payable 23 500 500 500 500 500
Percentage Tax Payable 24 13,344 14,011 14,711 15,447 16,219
Total Liabilities 43,423 46,942 50,637 54,518 58,595
Owner's Equity
Capital Exh4 769,368 1,153,843 1,562,275 1,995,865 2,455,898
Total Liabilities And Owners Equity 812,791 1,200,785 1,612,912 2,050,382 2,514,494
xxiii
EXHIBIT 3
PROJECTED STATEMENT OF CASHFLOWS

Net income 723,321 768,950 816,865 867,179 920,067
Add: Depreciation Expense 23,040 23,040 23,040 23,040 23,040
Add: Factory Depreciation Expense 3,350 3,350 3,350 3,350 3,350
Cash income 749,710 795,340 843,254 893,569 946,457
Operating Activities
(Increase) / Decrease in Inventory -27,833 -1,392 -1,461 -1,534 81
(Increase)/ Decrease in Prepaid rent -20,000
Increase / (Decrease) in SSS Premium Payable 1,469
Increase / (Decrease) in Philhealth Premium Payable 472
Increase / (Decrease) in Pag-ibig Premium Payable 400
Increase/ (Decrease) in income tax payable 27,239 2,852 2,995 3,145 3,305
Increase/(Decrease) in percentage tax payable 13,344 667 701 736 772
Increase/ (Decrease) In Expanded Withholding Tax
500
Payable
Net cash provided by operating activities 745,300 797,467 845,488 895,915 950,615
Investing Activities:
(Increase) / Decrease in PPE -351,722
(Increase) / Decrease in Security Deposit -10,000
Net cash provided by investing activities -361,722
Financing Activities:
Investment 407,707
Withdrawal -361,660 -384,475 -408,432 -433,590 -460,034
Net cash provided by financing activities 46,047 -384,475 -408,432 -433,590 -460,034
Net increase/decrease in cash 429,625 412,992 437,056 462,325 490,581
Add: Cash, beginning 429,625 842,617 1,279,673 1,741,998
Cash, ending 429,625 842,617 1,279,673 1,741,998 2,232,579
xxiv
EXHIBIT 4
PROJECTED STATEMENT OF OWNERS EQUITY

Capital Beginning 407,707 769,368 1,153,843 1,562,275 1,995,865
Add: Profit 723,321 768,950 816,865 867,179 920,067
Less: Withdrawal 361,660 384,475 408,432 433,590 460,034
Capital End 769,368 1,153,843 1,562,275 1,995,865 2,455,898
xxv
SCHEDULES
xxvi
SCHEDULE 1
PROJECTED ANNUAL SALES REVENUE
Sales Percentage Per Number Of Orders Sales Sales Annual

Product Offered Market Share Product Annually Price Revenue
Chili Oil (S) 15,360 18.31% 2,812 60 168,744
Chili Oil (M) 15,360 18.87% 2,899 120 347,872
Chili Oil (L) 15,360 8.17% 1,255 170 213,309
Chili Garlic Oil (S) 15,360 19.15% 2,942 80 235,376
Chili Garlic Oil (M) 15,360 23.94% 3,678 120 441,330
Chili Garlic Oil (L) 15,360 11.55% 1,774 210 372,534
Total 100% 15,360 1,779,164
Assumption: Sales revenues will increase by 5% annually starting from its second year of operation.
xxvii
SCHEDULE 2
PROJECTED COST OF GOOD SOLD
No Of Direct Factory Cost Per Cost Of

Product Direct Labor
Orders Materials Overhead Unit Good Sold
Chiili Oil S 2,812 14 3 10.6 28 78,833
Chili Oil M 2,899 20 3 10.6 34 98,652
Chili Oil L 1,255 27 3 10.6 41 51,065
Chili Garlic Oil S 2,942 15 3 10.6 29 86,002
Chili Garlic Oil M 3,678 23 3 10.6 37 135,454
Chili Garlic Oil L 1,774 30 3 10.6 44 78,819
TOTAL 15,360 528,826
Assumption: Cost of Good Sold will increase by 5% each year.
xxviii
SCHEDULE 2.2
PROJECTED COST OF GOOD SOLD (CHILI OIL DIRECT MATERIALS)
No. of
Total Cost
Cost Per Oz
Product Ingredients Purchase Quantity Purchase Yield per
Oz per
Price bottle
bottle
Chili Oil
Small 1.2 4 5
Medium CHILI 3 KILOS 360 300 oz 1.2 6 7
Large 1.2 8 10
Total raw materials 22
Small 2.1 4 9
Vegetable
Medium 8 KILOS 640 300 oz 2.1 6 13
oil
Large 2.1 8 17
Total Cost Per Bottle
Small 14
Medium 20
Large 27
xxix
SCHEDULE 2.2.1
PROJECTED COST OF GOOD SOLD (CHILI GARLIC OIL DIRECT MATERIALS)
No. of
Total Cost
Cost Per Oz
Product Ingredients Purchase Quantity Purchase Yield per
Oz per
Price bottle
bottle
Chili Garlic Oil
Small 1.2 4 5
Medium CHILI 3 KILO 360 300 oz 1.2 6 7
Large 1.2 8 10
Small 1.8 4 7
Vegetable
Medium 6 KILO 540 300 oz 1.8 6 11
Oil
Large 1.8 8 14
Small 0.8 4 3
Medium Garlic 2 KILO 240 300 oz 0.8 6 5
Large 0.8 8 6
Total Cost Per Bottle
Small 15
Medium 23
Large 30
xxx
SCHEDULE 2.3
PROJECTED COST OF GOOD SOLD (DIRECT LABOR COST)
No. Of Basic Salary Monthly Annual 13Th Salaries

Position (Production Staff)
Employee Per EE Salary Salary Month Expense
Production Staff 2 500 4000 48000 4000 52000
Total 52000
Divide By Total Number Unit Produced 15,360
Direct Labor Cost Per Unit 3.39
xxxi
SCHEDULE 2.4
PROJECTED COST OF GOOD SOLD (FACTORY OVERHEAD)
Particulars Schedule No. Total
Depreciation Expense 2.4.1 3,350

Utilies Expense 2.4.2 45,600
Repairs And Maintenance 2.4.3 1,571
Supplies 2.4.4 112,990
Total 163,511
Divde By Total Number Of Unit Produced 15,360
Factory Overhead Per Unit 10.6
xxxii
SCHEDULE 2.4.1
PROJECTED COST OF GOOD SOLD (FACTORY DEPRECIATION EXPENSE)
Depreciation
Particulars Quantity Cost Total Cost Useful Life
Expense
Food Processor 1 22,500 22,500 10 2,250
Burner 2 899 1,798 5 360
Colander 1 120 120 3 40
Boiler Kaldero 2 3,500 7,000 10 700
Total 31,418 3,350
xxxiii
SCHEDULE 2.4.2
PROJECTED COST OF GOOD SOLD (FACTORY UTILITIES EXPENSE/ELECTRICITY)
Number of
Annual
Hours Divide No. of Rate Electricity
Used in No of 1,000 by Kilowatts per Expense
Particulars Quantity Wattage a day days Total kilowatts KWH
Food
1,000 2,120 9 19,080
Processor 1 1,000 8 265 2,120,000
Total 19,080
xxxiv
SCHEDULE 2.4.2.1
PROJECTED COST OF GOOD SOLD (FACTORY UTILITIES EXPENSE/GAS CONSUMPTION)
Particulars Quantity Month Frequency Annual Cost

Gas tank(acquisition) 2 2,480 1 4,960
Gas tank(refillable) 2 980 11 21,560
Total 26,520
Grand Total 45,600
xxxv
SCHEDULE 2.4.3
PROJECTED COST OF GOOD SOLD (FACTORY REPAIR AND MAINTENANCE)
Description Quantity Cost Total Cost

Food processor 1 22,500.00 22,500
Burner 2 899 1,798
Colander 1 120 120
Boiler Kaldero 2 3,500 7,000
Total 31,418
Multiplied By 0.05
Total 1,571
xxxvi
SCHEDULE 2.4.4
PROJECTED COST OF GOOD SOLD (FACTORY SUPPLIES)
Description Quantity Unit Of Measure Unit Cost Annual Cost

Bottle 4 oz 240 Boxes 150 35,966
Apron 24 pcs 150 3,600
Gloves 2 Boxes 200 400
Wooden Turner 6 pcs 200 1,200
Total 112,990
xxxvii
SCHEDULE 3
PROJECTED SALARIES EXPENSE
Basic
No Of Salary Per
Position Employees EE Monthly Salary Annual Salary 13th Month Pay Salaries Expense
Cashier 1 403 10,478 125,736 10,478 136,214
Total 10,478 125,736 10,478 136,214
Assumption: 13th month pay will be provided to the employees.
xxxviii
SCHEDULE 4
PROJECTED STATEMENT OF TRANSPORTATION EXPENSE
Particulars Cost No of trips in a year Total
Roundtrip transportation ( from fatima to kcc and

bagsakan and vice versa 200 12 2,400
Assumption: Transportation expense will increase by 5% yearly.
xxxix
SCHEDULE 5
PROJECTED SSS, PHILHEALTH, PAG IBIG EXPENSE
No Of
Position Employees Monthly Salary Sss - Er Phic - Er Pag-Ibig - Er
Cashier 1 10,478 11,964 2,829 2,400
Total 10,478 11,964 2,829 2,400
Assumption: SSS, Pag-Ibig and PhilHealth contribution will be paid every first week of the following month.
xl
SCHEDULE 6
PROJECTED SUPPLIES EXPENSE
Description Quantity Unit Of Measure Unit Cost Total Cost

Hand sanitizer 24 bottle 80 1,920
Sando Bag 77 packs 15 1,155
Reciept sheet 50 roll 20 1,000
Ballpen 12 pcs 5 60
Record book 1 book 120 120
Spin mop 1 pc 300 300
Dishwashing 1 bottle 90 90
Hand soap 1 bottle 120 120
Trash can 2 can 160 320
Total 5,085
Assumption: Supplies expense will increase annually by 5%.
xli
SCHEDULE 7
PROJECTED ADVERTISING EXPENSE
Particulars Advertising Fee

Tarpaulin 2,000
Social Media (Fb) 6,000
Total 8,000
Assumption: Advertising expense will increase by 2% annually.
xlii
SCHEDULE 8
PROJECTED DEPRECIATION EXPENSE (EQUIPMENTS)
Description Quantity Cost Total Cost Life Used Depreciation

Expense
Cctv bulb 2 980.00 1,960 5 392
Electric fan 1 1,700.00 1,700 5 340
Fire Extinguisher 1 1,800.00 1,800 2 900
Cash Register 1 10,000 10,000 10 1,000
Total 15,460 2,632
xliii
SCHEDULE 8.2
PROJECTED DEPRECIATION EXPENSE (FURNITURE AND FIXTURES)
Description Quantity Cost Total Cost Life Used Total

Plastic chair 2 400.00 800 5 160
Hanging cabinet 1 1,700.00 1,700 20 85
Product display 1 2,500.00 2,500 15 167
Total 5,000 412
xliv
SCHEDULE 8.3
PROJECTED DEPRECIATION EXPENSE (LEASEHOLD IMPROVEMENT)
Particulars Total Cost Useful Life Depreciation Expense
1.Excavation and Embankment 8,694.00

2.Structural Works 84,766.50
3.Architectural Works 36,949.50
4.Masonry Works 16,301.25
5.Interior and Exterior Painting Works 14,127.75
6.Structural Street and Roofing Works 21,735.00
7.Electrical Works 15,214.50
8.Sanitary and Plumbing 19,561.50
Total Material Works 217,350.00
Labor Works 82,593.00
Total Project Cost 299,943.00 15 19,996
Grand Total 23,040
Assumption: Straight-line method is used in calculating the depreciation expense of the equipment. The
depreciation is constant from the first year to fifth year.
xlv
SCHEDULE 9
PROJECTED UTILITIES EXPENSE (ELECTRICITY)
Number
NO.
of Hours Divide Rate per Annual Utilities
Particulars Quantity Wattage of TOTAL KWH
use in a 1,000 klowatts Expense
Days
day
CCTV camera 2 20 24 365 350,400 1,000 350 9 3,154
Electric fan 1 70 8 265 148,400 1,000 148 9 1,336
Cash Register 1 20 8 265 42,400 1,000 42 9 382
Light Bulb 2 9 8 265 38,160 1,000 38 9 343
Wifi router 1 9 8 265 19,080 1,000 19 9 172
Total 5,214
xlvi
SCHEDULE 9.2
PROJECTED UTILITIES EXPENSE (WATER CONSUMPTION)
Price per Annual

Monthly Water Consumption per Cubic No. of month in a
Particulars Cubic Water
Meter years
Meter Expense
Sink 1 212 12 2,544
Comfort room 1 212 12 2,544
Total 5,088
xlvii
SCHEDULE 9.3
PROJECTED STATEMENT OF UTILITIES EXPENSE (TELEPHONE AND INTERNET)
Particulars Monthly Annual

PLDT 1,900 22,800
Total 22,800
Grand Total 33,102
Assumption: Utilities expense are classified as period cost will increase by 5% on the following year.
xlviii
SCHEDULE 10
PROJECTED REPAIRS AND MAINTENANCE (EQUIPMENTS)

Cctv bulb 2 980.00 1,960
Electric fan 1 1,700.00 1,700
Cash Register 1 10,000 10,000
Total 13,660
xlix
SCHEDULE 10.2
PROJECTED REPAIRS AND MAINTENANCE (FURNITURE AND FIXTURES)
Description Quantity Price Total Cost

Plastic chair 2 400.00 800
Hanging cabinet 1 1,700.00 1,700
Product display 1 2,500.00 2,500
Total 5,000
l
SCHEDULE 10.3
PROJECTED OF REPAIRS AND MAINTENANCE (LEASEHOLD IMPROVEMENT)
Particulars Total Cost

1.Excavation and Embankment 8,694.00
5.Interior and Exterior Painting Works 14,127.75
6.Structural Street and Roofing Works 21,735.00
8.Sanitary and Plumbing 19,561.50
Total Project Cost 299,943.00
Grand Total 318,603.00
Multiplied By 0.03
Total 9,558
Assumptions: Repair and Maintenance is 3% of the total cost of property, plant and equipment and will increase
by 5% on the following year.
li
SCHEDULE 11
PROJECTED RENT EXPENSE
Particular Monthly Rental Fee Annual Rental Fee

Rent 10,000 120,000
Assumptions: Rent expense will be fixed for the following years.
lii
SCHEDULE 12
PROJECTED BUSINESS PERMITS AND LICENSES

Business Location Clearance 75 75 75 75 75
Brgy. Clearance 60 60 60 60 60
DTI Permit 500 500 500 500 500
Confirmation/Certificate/Verification/Clearance Fee 30 30 30 30 30
Recording Fee 500 500 500 500 500
Community Tax 1,779 1,868 1,962 2,060 2,163
Total 2,944 3,033 3,127 3,225 3,328
Assumption: Permits and licenses annual expense are constant except community tax which a tax of Php 1 for
each Php 1000 of the total sales.
liii
SCHEDULE 13
PROJECTED MISCELLENOUS EXPENSES
Particulars Schedule For Miscellaneous Expense

Salaries Expense 136,214
Transportation Expense 2,400
Sss Contribution Expense 11,964
Philhealth Contribution Expense 2,829
Pag-Ibig Contribution Expense 2,400
Supplies Expense 5,085
Advertising Expense 8,000
Utitilies Expense 33,102
Rent Expense 120,000
Business Permits And Licenses 2,944
Depreciation Expense 23,040
Repairs And Maintenance 9,558
Total 357,536
Multiply By 0.02
Total Miscellaneous Expense 7,151
Assumption: Miscellaneous is 2% of total expenses and will increase by 2% on the following year.
liv
SCHEDULE 14
PROJECTED PERCENTAGE TAX EXPENSE

Sales Revenue 1,779,164 1,868,122 1,961,528 2,059,605 2,162,585
Percentage Tax 3% 3% 3% 3% 3%
Percentage Tax Expense 53,375 56,044 58,846 61,788 64,878
Assumption: The rate used in computing percentage tax of the business would be 3% on the gross sales.
lv
SCHEDULE 15
PROJECTED INCOME TAX EXPENSE

Tax For 800,000 102,500 102,500 102,500 102,500 102,500
Tax Excess Over 800,000 X 25% 6,455 17,863 29,841 42,420 55,642
Total Income Tax Expense 108,955 120,363 132,341 144,920 158,142
Income Tax Payable 27,239 30,091 33,085 36,230 39,535
Assumption: The business will be subjected to Income taxes and it will be paid every first month of the
succeeding quarter.
lvi
SCHEDULE 16
PROJECTED STATEMENT OF INVENTORIES

Total Manufacturing Cost 556,659.03 612,324.93 642,941.18 675,088.24 675,011.52
Add: Work In Process Beginning
Total Goods Placed In Process 556,659.03 612,324.93 642,941.18 675,088.24 675,011.52
Less: Work In Process End
Cost Of Goods Manufactured 556,659.03 612,324.93 642,941.18 675,088.24 675,011.52
Add: Finished Goods Beginning 27,832.95 29,224.60 30,685.83 32,220.12
Total Goods Available For Sale 556,659.03 584,491.98 613,716.58 644,402.41 642,791.40
Less: Merchandise Inventory End 27,832.95 29,224.60 30,685.83 32,220.12 32,139.57
Cost Of Goods Sold 528,826.08 555,267.38 583,030.75 612,182.29 642,791.40
Total Cost Of Goods Sold 528,826.08 555,267.38 583,030.75 612,182.29 642,791.40
Assumption: 5% of the inventory remained on hand at year end.
lvii
SCHEDULE 17
PROJECTED PREPAID RENT
Particular Monthly Rental Fee No Of Month Rent Expense

Rent 10,000 2 20,000
Assumptions: The lease contract requires two (2) months advance rent and one (1) month security deposit.
lviii
SCHEDULE 18
PROJECTED STATEMENT OF PROPERTY, PLANT AND EQUIPMENT (EQUIPMENTS)

Food processor 1 22,500.00 22,500
Burner 1 899.00 899
Wooden board 2 200.00 400
Colander 1 120.00 120
Boiler kaldero 2 3,500.00 7,000
Wooden turner 2 200.00 400
Cctv bulb 2 980.00 1,960
Fire extinguisher 1 1,800.00 1,800
Cash register 1 10,000.00 10,000
Electric fan 1 1,700 1,700
Total 46,779
lix
SCHEDULE 18.2
PROJECTED STATEMENT OF PROPERTY, PLANT AND EQUIPMENT (FURNITURE AND FIXTURES)

Plastic chair 2 400.00 800
Hanging cabinet 1 1,700.00 1,700
Product display 1 2,500.00 2,500
Total 5,000
lx
SCHEDULE 18.3
PROJECTED STATEMENT OF PROPERTY, PLANT AND EQUIPMENT (LEASEHOLD IMPROVEMENTS)
Particulars Total Cost

1.Excavation And Embankment 8,694.00
5.Interior And Exterior Painting Works 14,127.75
6.Structural Street And Roofing Works 21,735.00
8.Sanitary And Plumbing 19,561.50
Total Project Cost 299,943.00
Grand Total 351,722
Assumption: The total cost of property, plant and equipment will be constant during the years of operation.
lxi
SCHEDULE 19
PROJECTED STATEMENT OF ACCUMULATED DEPRECIATION (EQUIPMENTS)
Description Qty Cost Total Cost Life Used Year1 Year2 Year3 Year4 Year5
Food
Processor 1 22,500 22,500 10 2,250 4,500 6,750 9,000 11,250
Burner 2 899 1,798 5 360 719 1,079 1,438 1,798
Colander 1 120 120 3 40 80 120 160 200
Boiler Kaldero 2 3,500 7,000 10 700 1,400 2,100 2,800 3,500
Cctv Bulb 2 980.00 1,960 5 392 784 1,176 1,568 1,960
Electric Fan 1 1,700.00 1,700 5 340 680 1,020 1,360 1,700
Fire
Extinguisher 1 1,800.00 1,800 2 900 1,800 2,700 3,600 4,500
Cash Register 1 10,000 10,000 10 1,000 2,000 3,000 4,000 5,000
Total 15,460 5,982 11,963 17,945 23,926 29,908
lxii
SCHEDULE 19.2
PROJECTED STATEMENT OF ACCUMULATED DEPRECIATION (FURNITURE AND FIXTURES)
Description Qty Cost Total Cost Useful Life Year1 Year2 Year3 Year4 Year5
Plastic Chair 2 400.00 800 5 160 320 480 640 800
Hanging
1,700.00
Cabinet 1 1,700 20 85 170 255 340 425
Product
2,500.00
Display 1 2,500 15 167 333 500 667 833
Total 5,000 412 823 1,235 1,647 2,058
lxiii
SCHEDULE 19.3
PROJECTED ACCUMULATED DEPRECIATION (LEASEHOLD IMPROVEMENT)
Total Useful
Particulars
Cost Life Year1 Year2 Year3 Year4 Year5
1.Excavation And Embankment 8,694.00
5.Interior And Exterior Painting
Works 14,127.75
6.Structural Street And Roofing
Works 21,735.00
8.Sanitary And Plumbing 19,561.50
Total Project Cost 299,943.00 15 19,996 39992 59989 79985 99981
Grand Total 26,389 52,779 79,168 105,558 131,947
Assumption: The accumulated depreciation will increase annually due to the asset’s value declines.
lxiv
SCHEDULE 20
PROJECTED SECURITY DEPOSIT
Particular Monthly Rental Fee No Of Month Total

Security Deposit 10,000 1 10,000
Assumptions: The lease contract requires two (2) months advance rent and one (1) month security deposit.
lxv
SCHEDULE 21
PROJECTED SSS, PHIC AND PAG-IBIG PAYABLE
No Of
Employee Monthly SSS - SSS - PHIC - PHIC - PAG-IBIG - PAG-IBIG -
Position s Salary ER EE ER EE ER EE
Production
2 4,000
Staff
Cashier 1 10,478 997 472 236 236 200 200
Total 14,478 997 472 236 236 200 200
1469 472 400
Grand Total
Assumption: SSS/PHIC/HDMF Payable are fixed expenses.
lxvi
SCHEDULE 22
PROJECTED INCOME TAX PAYABLE

Tax For 800,000 102,500 102,500 102,500 102,500 102,500
Tax Excess Over 800,000 X 25% 6,455 17,863 29,841 42,420 55,642
Total Income Tax Expense 108,955 120,363 132,341 144,920 158,142
Income Tax Payable 27,239 30,091 33,085 36,230 39,535
Assumption: The business will be subjected to Income taxes and it will be paid every first month of the
succeeding quarter.
lxvii
SCHEDULE 23
PROJECTED EXPANDED WITHHOLDING TAX PAYABLE
Particulars Year1 Year2 Year3 Year4 Year5

Annual Rent Expense 120,000 120,000 120,000 120,000 120,000
Expanded Withholding Tax Due 6,000 6,000 6,000 6,000 6,000
Less: Withholding Tax Remittance ( Jan-Nov) 5,500 5,500 5,500 5,500 5,500
Expanded Withholding Tax Payable 500 500 500 500 500
Assumption: The Expanded Withholding Tax Payable rate is 5% of rent expense subject to withholding tax.
lxviii
SCHEDULE 24
PROJECTED PERCENTAGE TAX PAYABLE

Sales Revenue 1,779,164 1,868,122 1,961,528 2,059,605 2,162,585
Percentage Tax 3% 3% 3% 3% 3%
Percentage Tax Expense 53,375 56,044 58,846 61,788 64,878
Percentage Tax Payable 13,344 14,011 14,711 15,447 16,219
Assumption: The rate used in computing percentage tax of the business would be 3% on the gross sales.
lxix
lxx
APPENDICES
lxxi
Appendix A
LETTER TO THE RESPONDENTS
Ramon Magsaysay Memorial Colleges
College of Business Education
October 04, 2023

Kristan Peer Siasico
Owner
5 Angel's Chili Oil Shop Calumpang, General Santos City
Dear Sir.
The undersigned is a student of Ramon Magsaysay Memorial Colleges General
Santos City. He is presently conducting a feasibility study entitled, "THE
FEASIBILITY STUDY OF ESTABLISHING A CHILI OIL SHOP IN FATIMA,
GENERAL SANTOS CITY" in partial fulfillment of the requirements of the course
for the degree of Bachelor of Science in Business Administration.
In line with this, the researcher respectfully requests permission from your
esteemed office to conduct interviews related to this study. Please be assured that
all data gathered will be treated with the utmost confidentiality and will be used
exclusively for purpose of the feasibility study.
Your positive response on this request will be much appreciated. Thank you and
God bless.
Very truly yours,

Brent F. Obiedo
Researcher
Noted by:
Cyra Mae Mandabon Lanestosa,

CPA Feasibility Study Adviser
lxxii
Grace Cordova Paloso

Owner
Chili Oil Online Shop
Barangay Bawing, GeneralSantosCity
Dear Maam.
God bless.
Very truly yours,

Brent F. Obiedo
Researcher
Noted by:

lxxiii
Letlet Suco
Owner
Let Chili Garlic Oil Stall
Fatima, General Santos City
Dear Maam.
God bless.
Very truly yours,

Brent F. Obiedo
Researcher
Noted by:

lxxiv
Appendix B
LETTER TO THE LGU
October 19, 2023
Hon. Lorelie G. Pacquiao

Municipal Mayor
Local Government Unit
General Santos City
Mindanao, 9500
Dear Ma'am:
Santos City. She is presently conducting a feasibility study entitled, “THE
GENERAL SANTOS CITY” in partial fulfillment of requirements of the course for
the degree of Bachelor of Science in Business Administration.
In line with this, the researcher respectfully request permission from your
esteemed office to provide the following information:
Recent Poverty Rate in General Santos City
Total number of households per barangay in General Santos City
Rest assured that all data gathered will be treated with the utmost confidentiality
and used exclusively for the feasibility study. Your positive response on this
request will be much appreciated. Thank you and God bless.
Very truly yours,

Brent F. Obiedo
Researcher
Noted by:
Cyra Mae Mandabon Lanestosa, CPA
Feasibility Study Adviser
lxxv
Appendix C
SURVEY QUESTIONNAIRE
The feasibility study establishing a chili oil shop in Fatima, General Santos
City.
The business will produce and sell high-quality chili oil made with fresh
ingredients and traditional methods. The target market is the growing
number of people in General Santos City who enjoy spicy food and are
looking for a unique and flavorful chili oil.
Personal information
Name(optional):_________________________Age_____________
1. Have you tried chili oil?
☐Yes ☐No
2.Where do you usually use chili oil?
☐To pair with favorite dishes
☐For cooking
Others; please specify;___________

3. If a chili oil shop will be established in Fatima General Santos City, are you
willing to buy our product? (If no do not proceed)
☐Yes ☐ No
4. Which of the following products of the proposed business will you

avail? Choose also your preferred sizes and no. of bottles.
PRODUCTS SIZES/PRICES NO. OF ORDERS
☐CHILI ☐SMALL Php 50.00 ☐1 BOTTLE

OIL (4 OZ) ☐2BOTTLES
☐MEDIUM Php ☐3 BOTTLES
120.00 OTHERS;
☐(6 OZ) please specify_________
lxxvi
LARGE Php 170.00

(8 OZ))
CHILI GARLIC ☐SMALL Php 70.00 ☐1 BOTTLE

OIL (4 OZ) ☐2 BOTTLES
☐MEDIUM Php150.00 (6 ☐3 BOTTLES
OZ) OTHERS;please
☒LARGE Php 200.00 specify_________
(8 OZ))
5. How often would you purchase from the proposed chili oil shop in a year?
please specify: ____________
[12 time in a year]
lxxvii
Appendix D
INTERVIEW GUIDE
INTERVIEW GUIDE
This guide is designed to gather information about the competitor's business,
with a focus on marketing, technical aspects, management and organization,
financial matters, and socio-economics.
Profile
1.When was the business started?
2. How long was the business
been around?
3. What is the mission and vision of your business?
4. What long-term goals do you have for the
business?
Internal Assessment
Marketing Aspect
1.Who are your target markets?
2.What is your pricing structure? How do you decide on your prices?
3. What goods are offered by you?
4. On average, how many customers do you serve daily?
5. How many products are normally sold per day, on average?
5. What kind of interactions do customers usually have with your company? (e.g.,
dine-in, takeout, delivery)
Management and Organization Aspect
1.What is the form of business organization?
2.How many workers do you employ? Could you briefly describe your
organizational structure and the main employees?
3. What is the average monthly wage for employees in various positions? The
daily rate (if applicable)?
lxxviii
4. Do you have specific days off or are you open every day of the year? (e.g.,
Sundays, holidays)?
Technical Aspect
1.What facilities and equipment does your business have?
2. How do you decide where to locate your business?
3. Who are your suppliers?
4.Have there ever been any problems with the quality or availability of raw
materials from your suppliers? Financial Aspect
1.How much would be the capital or estimated capital needed in putting up the
business?
2.How long does it take for the business to recover the expenses after the
establishment?
Socio- Economic Aspect
1.How does the business help the society?
2.How does your business help the economy?
3.Do you have any further details or observations about your business that you
feel
would be useful for my feasibility study?
lxxix
Tel. No. 552-3348
APPENDIX E: CERTIFICATION OF ENGINEER
C E R T I F I C A T I O N
June 6, 2024
TO WHOM IT MAY CONCERN:
This is to certify that the floor plan layout of Brent Obiedo has been verified and
manually checked. Also, the bill of quantities was made with Engineer’s judgment
and undergone professional estimation.
This certification is issued upon the request of the above-mentioned name
of student whatever legal purpose may serve the best.
Done this on June 6, 2024in the year of our Almighty God.
I hereby affix my signature for the correctness of forgoing certification.
ENGINEER RYM TEE BERGADO
Engineer
lxxx
RAMON MAGSAYSAY MEMORIAL COLLEGES

Tel No. (083) 552-3348 Fax No. (084) 301-1527
www.rmmc.edu.ph
APPENDIX F: CERTIFICATION OF GRAMMARIAN
CERTIFICATION
TO WHOM THIS MAY CONCERN:
This is to certify that the feasibility study of Brent Obiedo entitled, “THE
GENERAL SANTOS CITY”, has been edited and grammatically checked.
This certification is issued upon the request of the above named of student
whatever legal purpose may serve the best.
Given this 30th day of October, 2024 at Ramon Magsaysay Memorial
Colleges, General Santos City, Philippines.
MARY CRIS L. LAGAHIT, LPT

GRAMMARIAN
lxxxi
BIBLIOGRAPHY
Asadraza. (2022, June 18). Why Chili Oil is the Perfect Asian Condiment [History
+ Recipe]. Immi. https://immieats.com/chili-oil-is-the-perfect-condiment/
Chilli oil: a drop of life that goes literally on everything. | Chineat Official. (n.d.).
https://www.chineatofficial.com/project/chilli-oil-a-drop-of-life-that-goes-
literally-on-everything
Lip, G. (2023, October 16). Sole Proprietorship. Corporate Finance Institute.
https://corporatefinanceinstitute.com/resources/management/sole-proprietorship/
Indeed (2022, June 25). What Is a Simple Structure Organization?
https://www.indeed.com/career-advice/career-development/simple-structure
lxxxii
Brent F. Obiedo
Barangay Fatima Purok 11c, General Santos City
09512509946
E-mail: obiedob52@gmail.com
PERSONAL BACKGROUND
Birthdate: September 3 2002

Birthplace: Tinugas Ned lake Sebu South Cotabato
Sex: Male
Age: 21 Years old
Height: 4’9
Weight: 48
Citizenship: Filipino
Language Spoken: Ilonggo, Bisaya, Tagalog, English
Religion: Alliance
Status: Single
Mother’s Name: Faith Hope F. Obiedo
Father’s Name: Julieto M. Obiedo
Education
College Ramon Magsaysay Memorial College

Bachelor of Science in Business Education
Major in Financial Management
General Santos City
August 2022- 2026
Senior High School Fatima National High School

Brgy Fatima General Santos City
2029 –2022
Junior High School Fatima National High School

Brgy. Fatima General Santos City
June 2015 – April 2019
Elementary Tinugas Elementary School

Brgy. Ned, lake Sebu, South Cotabato
June 2007 – March 2015

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i

A FEASIBILITY STUDY OF ESTABLISHING A CHILI OIL SHOP IN FATIMA,

GENERAL SANTOS CITY

THE FACULTY OF THE COLLEGE OF BUSINESS EDUCATION RAMON

MAGSAYSAY MEMORIAL COLLEGES

GENERAL SANTOS CITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS IN FEASIBILITY

RAMON MAGSAYSAY MEMORIAL COLLEGES

CYRA MAE M. LANESTOSA, CPA

MARIVIC B. PEÑAFLOR, CPA, PhD.

GINA G. RAPATAN, PhD. JAYPEE D. BIGNO, CPA

Accepted and Approved on June 2024 in partial fulfillment of the

MARIVIC B. PEÑAFLOR, CPA, PhD.

researcher needed to ascertain whether there was a market and demand. In

proposed business as well as if there is a profit.

households in the selected barangays in General Santos City. Specifically, the

with their real costs.

For the management and organization aspect, the organizational

structure of the proposed business is a flat structure which smallest businesses

use to centralize their activities. A flat organizational structure doesn’t have

multiple layers of management or formal departments. Instead, it is a

straightforward organizational structure that typically has a single owner who

forecast, project financial statement, financial analysis, and financial statement

supporting schedule. The proposed business will be formed as a sole

propietorship, with an initial capitalization of Php 407,707.

For the socio-economic aspect, as a result, the researcher concluded

Corporate Social Responsibility, providing employment, paying income taxes. It

Imposition of Income Tax, Assistance to Schools and Local Government Office.

This study is the result of numerous sacrifices. It is wholeheartedly and

proudly dedicated to the people who serve as inspiration of the researcher’s

To the faculty and staff of Ramon Magsaysay Memorial Colleges,

better understand this study;

be able to carry out this study

All of these are offered to you all.

The researcher acknowledges with deep appreciation and heartfelt

This Feasibility Study has been made possible by the guidance,

supervision, cooperation and participation of the following:

development of this study;

To the panelists, Ma’am Gina G. Rapatan, PhD, Sir Jaypee D. Bigno,

valuable comments and suggestions to improve this study;

for their participation in this study;

throughout this study;

cooperation they spent in the interview.

Executive Summary iii

List of Contents vii

List of Figures xiii

List of Tables xiv

List of Exhibits xvi

List of Schedules xvii

List of Appendices xix

Background of the Study 1

Rationale of the Study 3

Objectives of the Study 3

Scope and Limitations 4

Significance of the Study 4

Locale of the Study 9

Data Gathering Tool 9

Data Gathering Procedure 10

CHAPTER II: THE INDUSTRY AND BUSINESS DESCRIPTION