Proposed Establishment of

“SUNRICE RETAILER”

A Feasibility Study

Presented to the Faculty of the

College of Business Administration
Villaflores College, Tanjay City
 Proposed Establishment of
“SUNRICE RETAILER”

Investigators:

Risamae F. Eba
Leemargen C. Jarabe
 Proposed Establishment of
“SUNRICE RETAILER”

FS Adviser:

LTC Prof. Dr. Don Vicente C. Real

 Acknowledgement

First and foremost, we are grateful to our Almighty God for the good health and well-being

as we were able to complete and finish this study. We wish also to express our sincere gratitude

to the consumers of Barangay Inawasan, Pamplona Negros Oriental for participating and for

answering patiently the survey questionnaires that we gave to them.

Our sincere gratitude to our professor, Dr. Don Vicente C. Real for sharing his knowledge,

valuable guidance and encouragement he had extended to us. To Mrs. Ma. Cristina S. Sagun,

Dean of College of Business Administration, for her advice and suggestions for the study. To

Mrs. Jera Baldado, for helping us in our financial aspect despite of her hectic schedule.

Lastly, we take this opportunity to express our gratitude and thanks to our parents for the

unceasing encouragement, support and attention. We are also grateful to each other for we have

created camaraderie and strong bond throughout this venture.

Executive Summary

If we want to know what a business is, we have to start with its purpose. The

purpose must lie outside the business itself. It must lie in society, since customers are

the life- blood and foundation of any business and keep its existence. There are two

main purposes of business: to provide customer satisfaction and to gain profit or

income.

The proponents proposed a business named Sunrice Retailer that offers high

quality rice with affordable price. It is located at Barangay Inawasan, Pamplona

Negros Oriental. The target markets of the proposed business are the residents of the

said area. The study intends to measure the feasibility of Sunrice Retailer will offer.
Description of Products and Services

As the name of the business implies, SUNRICE RETAILER store basically

retail and deliver rice, primarily purchase rice from wholesalers and retail them

directly to end consumers - customers. SUNRICE RETAILER offers a high-

quality rice yet affordable price. To serve a wide range of customers and of course

to make profits, which is why we will ensure we go all the way to make their

preferred rice available.

Technology Considerations

POS Complete and make a sales P 80,000 2 P 160,000

Machine Set transaction faster.

Push Cart Designed for transport and P 1,400 5 P 7,000

serving.

Delivery Used to deliver goods to the P 990,000 1 P 990,000

Van customers and used to

transport purchased stocks.

CCTV(set) Used for security and P 25,000 1 P 25,000

surveillance reasons.

Generator A machine that P 48,000 1 P 48,000

moves a magnet near

a wire to create a

steady flow of

electrons.

Fire Used for emergencies P 4,000 5 P 20,000

Extinguisher especially when there

is fire.
Wall fan To make the P 1,300 4 P 5,200

establishment more

comfortable.

Bench Used for customers P 1,200 3 P 3,600

accommodation.

Eco Bags Bag used in packing P 13 1000 P 13,000

goods/items purchased

Total         P 1,271,800
 Items /Description Price

Sinandomeng Special
First we have the ‘Sinandomeng’ rice which is the
traditional favorite of every Filipino family. It has 3
SACK: P 2,070.00
types which are the ‘’special’, ‘fancy’, and ‘regular’. PER KILO: P 43.00
The fancy ‘Sinandomeng’ rice is also called as “laon”
meaning ‘old rice’. When cooked, the rice grain
becomes fairly soft and ‘maalsa’.

Happy Frog
SACK: P 2060.00
PER KILO: P 43.00
Happy frog rice is locally milled from Cabanatuan,
Isabella. Happy frog
Rice is also soft and fluffy when cooked.
 Ganador
Ganador rice is locally grown and produced
in Nueva Ecija. But
It is already a hybrid rice classified as IR64 SACK: P 2,385.00
PER KILO:P 47.50
rice, which means it is
Genetically mutated to produce a very good
quality of grains in a specific
environment/weather. IR64 is the most
widely grown rice variety in the
tropics like Philippines.

Princess Bea
Princess Bea is locally grown in Vietnam. SACK: P 2,100.00
Princess Bea is also soft and PER KILO: P 45.00
fluffy when cooked.
 Items /Description Price

Blue Berry Rice

Blue Berry is a well milled rice and it is soft and fluffy

when cooked.

SACK: P 2,140.00
PER KILO: P 45.00

Jasmine Rice
This is a long-grain variety of fragrant rice (also known SACK: P 2050.00
as aromatic rice). Its fragrance, reminiscent of pandan and
popcorn, results from the rice plant's natural production of PER KILO: P 42.00
aroma compounds, of which 2-acetyl-1-pyrroline is the  
most salient. This rapid loss of aromatic intensity leads
many Southeast Asians and connoisseurs to prefer each
year's freshly harvested "new crop" of jasmine rice.
 Items /Description Price

 King Crab Rice

King crab rice is locally milled rice and known for its
SACK: P2,000.00
fluffy and soft when cooked.
PER KILO: P 42.00
 Milagrosa Rice
Milagrosa is locally milled rice and known for its
fluffy and soft when cooked.
SACK: P2,000.00

PER KILO: P 42.00

Mama Gold Rice

Mama Gold Long grain is very fine locally

produced rice that compares to international SACK: P2,050.00

standards. The grain quality is superb. It cooks very PER KILO: P 43.00

well and easy.

 Blue Ribbon Rice
It's easy to prepare, economical, versatile, and a
healthy complement to any meal. Blue Ribbon rice
is grown in the U.S.A. and is Kosher approved.
SACK: P2,150.00
Families can trust Blue Ribbon to cook into fluffy
PER KILO: P 44.00
white rice. Blue Ribbon rice is naturally sodium
free, cholesterol free, and fat free.

 
Master Chefs SACK: P2, 150.00

Master Chefs is locally milled, fluffy and soft PER KILO: P 44.00
when cooked.
Super Chef Rice
SACK : P 2, 180.00
The extraordinary length of each grain is a natural
PER KILO: P 45.00
example in food art. Enjoy the heightened sensory

experience with the soft texture melting in your

mouth.

Princess Mia

SACK:P 2,100.00
Princess mea rice is locally milled and it is soft and
PER KILO: P 43.00
fluffy when cooked.
Doña Conchita Orange Rice
SACK: P 2,385.00
Dona Conchita Orange is one of the best
PER KILO:P 47.50
seller imported rice. With its highest Quality, long

Grains, soft rice, super delicious and

fragrant denorado rice.

Best Choice Rice

SACK : P 2,050.00
Best Choices Rice is a well-milled rice from
PER KILO: P 43.00
Diamantina Cabatuan, Isabela. With soothing

fragrance and long grain when cooked.

Product/Service Marketplace

 SUNRICE RETAILER is Located at Barangay Inawasan, Pamplona Negros Oriental,

along the highway. Our target markets are the residents of Barangay Inawasan. We are

the only rice retailer in the area. However, there were numbers of competitors like sari-

sari stores. SUNRICE RETAILER offers high-quality rice yet affordable price. We

assure to provide customers preferred quality of rice, efficient and consistent services,

with pleasing personality of the staffs.

 
Business Location
Marketing Strategy

  SUNRICE RETAILER is in business to retail, deliver and serve a high

quality rice yet affordable price to the residents of Barangay Inawasan, Pamplona ,Negros

Oriental. We are in the rice retail store not just to maximize profits and going to go all the

way out to ensure that we have achieve our business goals and objectives but also for the

residents advantage and convenience as a whole. Just like the other, SUNRICE

RETAILER ensures the abundance of stocks and keep track on their inventory to avoid

supply shortage.
Proposed Name of the Business
SUNRICE RETAILER is the proposed name of the business. We choose this name because
it is catchy and unique and easy to be remembered to our valued customers. The word Sunrice
was taken from word ‘Sunrise’ which symbolized new beginning. It marks the chance to achieve
something new and experience happiness in the coming day. Instead of using ‘rise’ we used ‘rice’
which represents the product that we will offer.
Pricing Strategy

Items Per Kilo Per Sack

Ganador ₱47.50 ₱2,385.00

Princess Bea ₱45.00 ₱2,100.00

Sinandomeng Special ₱43.00 ₱2,070.00

Happy Frog ₱43.00 ₱2,060.00

Blue Berry Rice ₱45.00 ₱2,140.00

Jasmin Rice ₱42.00 ₱2,050.00

NFA Rice ₱35.00 ₱1,500.00

King Crab Rice ₱42.00 ₱2,000.00

Milagrosa Rice ₱42.00 ₱2,000.00

Mama Gold Rice ₱43.00 ₱2,050.00

Blue Ribbon Rice ₱44.00 ₱2,150.00

Master Chefs Rice ₱44.00 ₱2,150.00

Super Chef Rice ₱45.00 ₱2,180.00

Princess Bea ₱43.00 ₱2,100.00

Dona Conchita Orange ₱47.50 ₱2,385.00

Rice
Best Choices Rice ₱43.00 ₱2,050.00

Glutinous Rice ₱44.00 ₱2,050.00

SWOT Analysis
Organization and Staffing

With the nature of business, SUNRICE RETAILER needs hardworking, trustworthy, and eligible staffs

for efficient and unwavering services.

Manpower Requirements
Position No. Monthly Rate Total(Month)
Cashier 1 8,400 8,400
Driver 1 8,400 8,400
Delivery Man 1 8,400 8,400
Shipper 1 1 7,000 7,000
Shipper 2 1 7,000 7,000
Bagger 1 7,000 7,000
Types of Business Organization

The proposed business will be own and manage by two persons namely,

Eba, Risamae Fabillar and Jarabe, Leemargen Cagula.

As the business progresses, the proponents agreed to adapt “partnership” type of

organization while running the proposed business.

 Less formal with fewer legal obligations

 Easy to get started

 Sharing the burden

 Better decision-making

 Privacy

 Ownership and control are combined

 Prospective partners
 The proponents thought of choosing this type of organization for the following advantages

gathered:

 Has rapid decision making

 Simple

 Clear lines of Authority

 Highly Efficient

 Flexible
Organizational Chart
Management Style

The proponents adopt paternalistic management wherein its focal point is on the employees more than

company’s bottom line. Employee satisfaction is the goal of the company when it applies this approach. The

management believes that if the employees are happy, they are more productive and will work very well.

Advantages of Paternalistic Management:

 High employee loyalty due to employees feeling like they are being heard and their needs are met.

 Good behaviour is rewarded by the person at the top, often with goods and food.

 Absenteeism rates and staff turnover will decrease as emphasis is placed on the employee’s needs.

 Most decisions will be made with the employees’ best interests taken into consideration

Feedback is invited and encouraged, which improves morale and makes employees feel important.
 There is an open line of communication between the managers and the employees which

will keep employees feeling important and satisfied.

 There is an understanding that the manager wants everyone to succeed, which can result in

a lower amount of competition among employees.

 The manager is given the power to rule from the idea that they are the most capable in

making the best decisions for the team, which fosters trust and loyalty with employees.

 Managers are very involved in the employee’s personal lives, which makes the employee

feel more connected at work.

Company’s General Policy

 For violation of any of the following rules, an employee shall be subject to penalties.

 Employee attendance and paid time off (including accrual or pay-outs of unused time

 Sick leave (including what your business will do if there’s a major outbreak or pandemic like the

influenza virus or most recently the COVID-19 crisis).

 Company holidays (paid or unpaid)

 Bereavement leave

 Family and medical leave (if applicable)

 Regular and overtime pay

 Working hours and breaks

 Dress codes/ Store uniform (if applicable)

 Rules of conduct (such as taking personal calls or using cell phones).

Confidentiality Policy

 A confidentiality policy helps protect customer data, trade secrets, procedures and information about
new products or services. Confidentiality policies might cover personal or proprietary data,
prototypes, software, drawings, systems, methods, internal and external communications, and test
results.

Drug and Alcohol Policy

 A drug-free workplace policy should strictly prohibit the sale, possession and use of illegal drugs or
alcohol when an employee is on the job. It should specify the types of forbidden substances and
conduct as well as the consequences for violating the policy.

Anti-Discrimination/Anti-Harassment Policy

 Today, this goes beyond the traditional language that prohibits discrimination based on race, colour,
national origin or gender, and it may include sexual orientation, gender identity or age as well. Make
sure your employees know that discrimination is illegal when you’re hiring, providing job
assignments or offering promotions.
Work Ethics

 Work ethic is an attitude of determination and dedication toward one’s job. Those with a strong work ethic place
a high value on their professional success. They exhibit moral principles that make them outstanding employees
in any position. If you have a strong work ethic, you believe in the importance of your job and typically feel that
hard work is essential to maintaining a strong character.

 Must perform his/her work well.

 Punctuality must be observed at all time.

 Ignorance of work rules is not an acceptable excuse for violation.

 Have 30 minutes break and 1 hour lunch break.

Vision

SUNRICE RETAILER continuously seeks to develop and provides the needs of the customers in order to meet the
demand in the society as with their maximum level of satisfaction.

Mission

SUNRICE RETAILER aims to provide good quality and services to prospective consumers

and provides the continuous demand of people in terms of high quality rice with affordable price.
Manpower Requirements/Job Analysis

The success of every business depends largely on the performance and attitude of its workers and staffs in entertaining and

serving their prospective customers. Following are the job analysis with workers qualifications.

 Job Title: Cashier

 A. He/ She must be good in handling cash.

 B. He/ She must be honest.

 C. He/ She will also be in charge in the cash register.

  

 Job Qualifications:

 A. He/ She must be a college graduate, a degree holder, taken up course related to business and has knowledge in

accounting.

 B. He/ She must be enthusiastic and flexile.

 C. He/ She must have a worked experience.

 D. He/ She must be a computer literate.

 E. He/ She must be proficient in Microsoft application and other software.

 D. He/ She must be mindful enough and must keep his/her focus.
Job Title: Driver

A. He must be good in eye condition.

B. He must have a driver’s license.

Job Qualifications:

A. He must be enthusiastic and flexible.

B. He must have a worked experience.

C. He must be mindful enough and must keep his focus.

Job Title: Delivery Man

A. He must have a pleasing personality.

B. He must be work oriented.

Job Qualifications:

A. He must be enthusiastic and flexible.

B. He must have a worked experience.

C. He must be mindful enough and must keep his focus.

Job Title: Shipper

A. He/ She must have a pleasing personality.

B. He/ She must be work oriented.

C. He/ She must be neat, presentable and organize.

 Job Qualifications:

A. He/ She must be enthusiastic and flexible.

B. He/ She must have a worked experience.

C. He/ She must be mindful enough and must keep his/her focus.
Proposed Salary Rates

Position Per Day Per Week Per Month Annually

Cashier 300 2,100 8,400 100,800

Driver 300 2,100 8,400 100,800

Delivery Man 300 2,100 8,400 100,800

Shipper 1 250 1,750 7,000 84,000

Shipper 2 250 1,750 7,000 84,000

Bagger 250 1,750 7,000 84,000

Total 1650 11,550 46,200 554,400
 Benefits and Insurances

When running a Rice Retailing business, administrative employees in this venture are

required to pay Social Security System (SSS) and Phil Health which will be deducted monthly from

individual’s salaries and wages.

SSS (SOCIAL SECURITY SYSTEM)

The total amount of an employee’s SSS contribution is computed as 11%. Of the monthly salary

(not more than php 16000) but this actually shared between the employee and employer- the employee

shoulders 3.63% while the employer pays the remaining 7.37%.

Position Monthly Employees Share Employer Monthly
Income Share Contribution
Cashier 8,400 243.01 680.99 924
Driver 8,400 243.01 680.99 924
Delivery man 8,400 243.01 680.99 924
Shipper 1 7,000 202.51 567.49 770
Shipper 2 7,000 202.51 567.49 770
Bagger 7,000 202.51 567.49 770

Total 46,200 1,336.56 3,745.44 5,082

PHIL HEALTH

The premium contribution shall be at the rate of 2.75% computed straight based on the monthly

basic salary, with a salary floor of P15, 000.00 and a ceiling of P40,000.0, to be equally shared by the

employee and their employer.

 
Position Monthly Income Monthly Employee Employer
Premium Share Share

Cashier 8,400 231 115.50 115.50

Driver 8,400 231 115.50 115.50

Delivery Man 8,400 231 115.50 115.50

Shipper 1 7,000 192.50 96.50 96.50

Shipper 2 7,000 192.50 96.50 96.50

Bagger 7,000 192.50 96.50 96.50

Total 78,400 1,270.50 635.25 635.25

Schedule
Financial Projections

This section presents the financial aspect of proposed establishment. It contains the

following:

 Balance Sheet

 Income Statement

 Cash Flow Projection

 Financial Analysis

Major Assumption Used

The following are the assumptions used by the proposed business.

 Property and Equipment are assumed to depreciate 5% a year.

 Salaries, SSS contributions, and PHILHEALTH contribution are assumed to increase 5%

every year.

 Utility expenses are assumed to increase 5% every year.

 Findings and Recommendations

Restatement of the Problem

General Problem:

The study aims to acquire consumers’ preferences about the products that Sunrice
Retailer will offer.

Specific Problems

1. What is the consumer’s source of income?

2. How many times does consumers purchase in a week?

3. How advantageous having local stores in your place/area?

Summary and Findings

This Feasibility study distinctly valuable to the residents of Barangay Inawasan,

Pamplona, Negros Oriental. The key findings are follows:

 The source income of the Target market is farming, motorcycle drivers, business
owners, government employed.
 
 60% of the respondents purchased 1 sack of rice in a week. 30% of it, will purchased
20kl of rice in a week and 10% they say that they buy 5kl of rice in a week.
  
 Local stores are greatly advantageous and convenient to the residents of Barangay
Inawasan, Pamplona Negros Oriental.

 Out of 100%, 90% said that having a retail store in the area is very helpful.
 
 
Conclusion
The following conclusions are formulated:
  
 That the proposed business of “SUNRICE RETAILER” in Barangay Inawasan is
feasible in terms of management aspects.
 
 That the proposed business of “SUNRICE RETAILER” in Barangay Inawasan is
feasible in terms of marketing aspects.
 
 That the proposed business of “SUNRICE RETAILER” in Barangay Inawasan is
feasible in terms of technical aspects.
 
 That the proposed business of “SUNRICE RETAILER” in Barangay Inawasan is
feasible in terms of financial aspects.
 
 That the proposed business of “SUNRICE RETAILER” in Barangay Inawasan is
feasible in terms of socio economic.

 
Recommendation

With regards to the fundamental information together with the conclusion derived

there from the proponents commend of going on the project and following the projects

scheduled usher in the chart. The proponents therefore, envision and conceptualize the

proposed project to hugely meet the demand of the customer/ the residents of Barangay

Inawasan, Pamplona, Negros Oriental as with the neighboring places. Simultaneously, it

would let the business reach its goal and objective predominantly in the area of

profitability and practicability of the proposed establishment “SUNRICE RETAILER”.

Thank you and God Bless