Feasibility Study free essay sample

Scope of the Project/ Executive Summary Arroceros Forest Park has a total land area of 21,428 square meters, it has 60 kind of indigenous trees and ten kinds of birds that choose to live in the park. Arroceros Forest Park are not build to handle bird but this is a forest park, some of the trees are have its capability to handle and attract birds to inhabit in the place, so the management decide to build an open cages for the birds. You can also see the a small portion of Pasig river view in the forest park. Arroceros Forest Park is now a heritage and historical site. The existence of this park marks to some environmental lover, many volunteers are going in the site to contribute in the environment by means of cleaning the surroundings and planting some trees. It is also visited by student, and some instructors made this forest park as the site for their NSTP class. Thus rightful to state that this product is not just delightful and also healthy food. Generally, this food cart business shows a very significant part of the Filipino Cuisine, the profitability of the business, and look at how this business will prosper. And that in such time the business can expand and operate in several locations, thus create and offer more jobs. Chapter II – Procedures in Undertaking the Activity 2. 1 Concept of Entrepreneurial Activity Most of food carts sells easy to eat foods and beverages. Our team came up of running a food cart business that serves one of the best Filipino creation, the Turon. It may sound plain and nothing new so we came up with our own innovations. Why not put a twist to the plain same old turon? How about adding fillings to it, even add a drizzle? And we decided to introduce it to our customers. After eating it, wouldn’t be great if you drink a cool fresh buko juice? So added to the business is another Philippine product. Next in the self-service basis, customers are given the basic turon and it’s up to them to design the taste with the suggested flavors. Lastly, the weekly food challenges will dare the customers to try turon with exotic flavors of fillings. Maybe as a part of the promotions, how about a spicy turon? 2. 2 Identification of Prospective Clients Running the business near colleges like Mapua, Lyceum and Letran. We expected several clients mainly the visitors and guest of the Intramuros which are divided to the STUDENTS, TOURISTS, PEDICAB DRIVERS AND COMMONERS. Our clients are mostly in the B and C classes. Clients from classes A D are also expected. The business expects to serve 15-25% of the total population in Intramuros in a day. 2. 3 Target Location There are many prime locations in Metro Manila where we can possibly run our business but amongst all is at the Walls of Intramuros near the colleges. Our target location passed our guidelines high population of trading area, small competition, cheap rent, and is very accessible. 2. 4 Preparation of Needed Materials and Labor Labor Force The business requires only two crews. One mainly for cooking another is for service and both of them will do the sales. The business requires minimal knowledge of the crew in terms of food preparation and service, thus it is a prerequisite for applicants. After closing, one of the crew shall proceed and help the in the preparation of products. Materials Needed We will utilize the native saging na saba from Davao for the main ingredient, other ingredients will be bought preserved in such way to these goods will not spoil. The business shall have its packaging printed with the business logo. Equipments for cooking, storage and display is also needed, such as Refrigerator, Deep Fryer, and Glass rack and Gulaman 2. Estimated Project Cost The total of the initial capital needed for set-up and operation of the business for its first month is Php. 129,425. 00 . The said amount includes all the budget for the operation of business; such as permits, license equipments, and ingredients and laborers salary. Chapter III – Benefits to the Consumers and Producers 3. 1 Benefits to the Consumers 3. 1. 1. Homem ade Unlike any other similar products, Turon Deluxe products would be prepared at home. The main ingredient, Banana, would come from different places, not in a stored cold refrigerator. The products are made preferrable fresh and made to order process. 3. 1. 2. Clean The products are made in a clean manner, it does not venture in anything that is wise made anywhere in the location of the business. The products are handly made before shifting to the location and produce with a good perspective manner in the eyes of the consumers. Using recyclable paper for the packaing 3. 1. 3. Accessible Location The Turon Deluxe is about to locate itself at the Walls of Intramuros. Knowing that this location is one of the most visited places in the Philippines due to its historic relations. At a very visible location, visitor and guest of the fortifications can drop by to taste and experience our product. Giving the consumers to a whole new level of eating an extraordinary turon at an extraordinary location. 3. 1. 4. Innovative Taste Unlike the other turons out in the market, this one is unique. It has a different taste not only with a banana filling but together with other Philippine fruit products. Tastes like strawberry, chocolate or even the weirdest ideas that the producers would come up that could satisfy the cravings of the consumers with regards to turon. 3. 2 Benefits of the Producers 3. 2. 1. Very Visible Location The producers will do locate the establishment in the Intramuros, Walls. Which is highly promoted to venture in business. It has different people in there, not only filipino people, but also tourist people. That place is well known as a Tourist Spot that would be a great surprise if filipino products would be sold in a historical tourist visit place, in a innovative way of selling turon. 3. 2. 2. Plenty of Prospective Market As been introduced, the place is well known tourist spot. Not only for people who would be intruders or visitors to our country, but the place is a surrounded vessel of schools. Visitors, students, tourist and many more would come and visit the establishment at least to try the new developed product. Not only once but people would re-visit the establishment as they are about to taste the difference of street filipino delicacies innovated to merge itself into the tastebuds of the consumers. Chapter IV – Production Activity 4. 1 Identification of the Production Activity The business is a labour intensive business utilizing more labour power in the production of goods than technical power. This will appear on the project cost. 4. 2 Description of the Production Activity and Processing The production activity focuses on the production of the native snack of the Filipinos, Turon. Hired crew will undergo a simple training regarding food storage,presenation,and service from one of the owners. Products will be prepared at home. Delivered into the stall and cooked there. 4. 3 Discussion of the Production Function 4. 3. 1 Project Cost Measurement Daily Unit Quantity Not Applicable Not Applicable Not Applicable Not Applicable Item Utensils Tongs Spoon Fork Canister Packaging Cups Strainer Aluminum Tray Tupperwares Tissue Equipments Electric Deep Fryer Small Refrigerator Quantity No. of Servings Days to Consume Price 75 25 45 0. 280 75 200 175 30 Subtotal Amount 150 50 180 9000 840 75 400 2625 3000 16320 3000 8000 2000 350 15000 28350 1380 27000 12960 11760 1050 2025 56175 7050 2280 1050 1200 2 2 4 18000 3 1 2 15 100 1 1 1 1 1 2 600 270 168 14 45 100 1000 Not Applicable Not Applicable Not Applicable Not Applicable 18000 1000 30 20 20 Glass Shelf Gulaman Jug Stall / Cart I ngredients Oil Banana Sugar (Brown) Macapuno (500 g) Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 1. 2 kg 20 kg 9 kg 6 bottles 236 g 659 g 17 kg 1 kg 1 kg 24 bottles 500 g 439 g 300 1 1 1 ml gal gal gal 25000 25000 20000 8000 7200 2000 30 30 30 40 30 30 30 30 30 30 000 8000 2000 350 15000 Subtotal 690 45 48 70 75 45 Subtotal Langka Pineapple Drizzle Condensed Milk Chocolate Honey Strawberry 150 1500 ml 6 750 ml 3 400 ml 4 500 ml 29500 1400 1500 47 380 350 300 Lumpia Wrapper Buko Ice Others Operation Permits Licenses 130 600 30 650 pcs 20 L 1 block 150 pcs 1 Lrg. Size 1 block Not Available 20000 3000 3000 30 30 30 20 15 25 5000 2600 9000 750 23930 5000 Grand Total Cost of Implemenation : 129775 This table shows all the required materials for the set-up and operation of our food cart business. Including ingredients, utensils and eqipments. 4. Identification and Discussion of the Project Cost Table 4. 4. 1 Workers Salary Number of Labor 1 1 Type of Work C rew (Cooking) Crew ( Service) Daily Salary per Labor Php . 440. 00 Php. 440. 00 Total Monthly Salary Php. 13200. 00 Php. 13200. 00 Php. 26400. 00 This is the wage matrix for the labour force of the business. Table 4. 4. 2 Monthly Fixed Cost Material Building Rental Labor Payroll Cost 16000 26400 42400 These are the certain resources that have a fixed value. This data is needed in determining the profit of the business. Montly Month Fixed Variable March PHP 42,400. 00 PHP 52,592. 63 April PHP 42,400. 00 PHP 39,772. 8 May PHP 42,400. 00 PHP 35,903. 08 June PHP 42,400. 00 PHP 45,825. 63 July PHP 42,400. 00 PHP 48,149. 18 August PHP 42,400. 00 PHP 50,159. 00 September PHP 42,400. 00 PHP 53,422. 38 October PHP 42,400. 00 PHP 50,425. 75 November PHP 42,400. 00 PHP 45,241. 85 December PHP 42,400. 00 PHP 44,078. 15 January PHP 42,400. 00 PHP 49,849. 68 February PHP 42,400. 00 PHP 54,080. 20 Table 4. 4. 4 Monthly Cost Schedule According to the projections a month of operation needs at least Php. 45000. 00. This cost There is no monthly cost that is identical to others, for variable cost changes in relation to the quantity of production. The amount in the variable others is the amount allotted for the weekly challenge, and other promotional activities of the business. TOTAL PHP 94,992. 63 PHP 82,172. 38 PHP 78,303. 08 PHP 88,225. 63 PHP 90,549. 18 PHP 92,559. 00 PHP 95,822. 38 PHP 92,825. 75 PHP 87,641. 85 PHP 86,478. 15 PHP 92,249. 68 PHP 96,480. 20 4. 5 Profitability of the Business On the first 6 months of operations projected revenues are in the range of eighty thousand to one hundred ten thousand pesos. The business assume a great response from clients, thus later on pure profit is expected to be seen in just a few months of operation. Table 4. . 2 Monthly Projection of Profits Montly Month March April May June July August September October November December January February Fixed Cost PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 PHP 42,400. 00 Variable Cost PHP 52,592. 63 PHP 39,772. 38 PHP 35 ,903. 08 PHP 45,825. 63 PHP 48,149. 18 PHP 50,159. 00 PHP 53,422. 38 PHP 50,425. 75 PHP 45,241. 85 PHP 44,078. 15 PHP 49,849. 68 PHP 54,080. 20 Production Cost PHP 36,430. 00 PHP 13,783. 63 PHP 1,728. 13 PHP 0. 00 PHP 0. 00 PHP 0. 00 PHP 200. 0 PHP 0. 00 PHP 0. 00 PHP 0. 00 PHP 0. 00 PHP 0. 00 TOTAL PRODUCTION COST PHP 131,422. 63 PHP 95,956. 01 PHP 80,031. 21 PHP 88,225. 63 PHP 90,549. 18 PHP 92,559. 00 PHP 96,022. 38 PHP 92,825. 75 PHP 87,641. 85 PHP 86,478. 15 PHP 92,249. 68 PHP 96,480. 20 PROJECTED REVENUE PHP 110,340. 00 PHP 91,567. 00 PHP 81,441. 00 PHP 99,585. 00 PHP 103,710. 00 PHP 108,540. 00 PHP 124,905. 00 PHP 106,260. 00 PHP 97,568. 00 PHP 88,527. 00 PHP 110,052. 00 PHP 114,420. 00 EXPECTED PROFIT -PHP 21,082. 63 -PHP 4,389. 01 PHP 1,409. 79 PHP 11,359. 37 PHP 13,160. 82 PHP 15,981. 00 PHP 28,882. 62 PHP 13,434. 25 PHP 9,926. 15 PHP 2,048. 5 PHP 17,802. 32 PHP 17,939. 80 As expected the business was able to gain pure profit in just two months of operation. The table also shows that such periods of times revenues differences are large. The quantity demanded determines the amount of the variable cost wherein it is added to the amount of the fixed cost and production cost to the total production cost. The total production cost is less the projected revenue in order to determine the profit. On the first two months of operations a negative profit is expected where after the said span the business constantly gains an increase in revenues and profit. But due to Christmas season in October down to December, a decrease in revenues and profit is perceived. But in the month of January to February the business was able to regain a high pure profit. Chapter V – Managerial Plan 5. 1 Objectives of the Entrepreneurial Activity Turon Deluxe aims to: a. ) To delight people by an innovation of an existing all-time favorite â€Å"Meryenda†. b. ) To show the creativeness of the Filipinos in the food industry. c. ) To encourage other producers and entrepreneurs to put their faith on Filipino products once again. d. To provide the consumers a clean, hassle-free, quick services. e. ) To promote Filipino originated products to the Foreigners. f. ) To encourage the consumers eat healthy and vitamin-rich, and tasty snack especially when the â€Å"meryenda time† comes. g. ) To use the vast banana supply in the Philippines economically. h. ) To earn a name and be known as the top Turon selling company here in the Philippines. i. ) To provide jobs for those who are in need badly. 5. 2 Organizational Plan Since there are seven owners no organizational plan is necessary. The task of general managing, researching, financial managing, and hands-on day to day checking are divided equally among the contributors. 5. 3 Business Strategy There will be promotional activities upon the opening of the business. Activities we will organize is a Buy 1 Get 2 promo for all turon products. Leaflets and Flyers will be also distributed to the potential clients roaming around the street. Another strategy is the lead conversion where in, during times where potential clients are in the vicinity, that is the cue for the crew to cook our product. And last but not least is our weekly challenge, whre we challenge our customers to try the turon with unusual fillings on it. 5. 4 Policies and Provisions All employees are encouraged to work because of their adequate salary. All employees are expected to get a raise after six months; this is still base on their work performance. Legal incentives are granted for every employee that worked for us, like health insurance, SSS and etc. There will be an award for the employee of the month, every month if a worker met the requirements. Workers with sickness will not be working on that day. Workers should always wear smile while their selling the products. 5. 5 Environmental Concern We encourage consumers to dispose waste properly, so we will have a trash bin nearby. We are using recyclable paper bags instead of plastics. We will use our resources economically so that we are not wasting the vast supply of banana in the Philippines and also other goods that we use . Apendix March Item Electric Bill Water Bill Ingredients Drizzle Utensils Others Total April Item Electric Bill Water Bill Ingredients Drizzle Utensils Others Total May Item Electric Bill Water Bill Ingredients Drizzle Utensils Others Total Cost PHP 1,148. 3 PHP 1,197. 00 PHP 18,762. 45 PHP 8,375. 50 PHP 6,420. 00 PHP 0. 00 PHP 35,903. 08 Tables 4. 4. 3 Monthly Variable Cost June Cost Item Electric Bill PHP 1,925. 00 Water Bill PHP 1,008. 00 Ingredients PHP 31,458. 00 Drizzle PHP 6,281. 63 Utensils PHP 6,420. 00 Others PHP 5500. 00 Total PHP 52,592. 63 July Cost PHP 1,409. 38 PHP 1,134. 00 PHP 23,031. 75 PHP 7 ,777. 25 PHP 6,420. 00 PHP 0. 00 PHP 39,772. 38 Cost PHP 1,546. 88 PHP 1,008. 00 PHP 25,278. 75 PHP 9,572. 00 PHP 6,420. 00 PHP 3000. 00 PHP 45,825. 63 Item Electric Bill Water Bill Ingredients Drizzle Utensils Others Total August Item Electric Bill Water Bill Ingredients Drizzle Utensils Others Total Cost PHP 1,670. 63 PHP 882. 00 PHP 27,301. 05 PHP 8,375. 50 PHP 6,420. 00 PHP 3500. 00 PHP 48,149. 18 Cost PHP 1,808. 13 PHP 1,008. 00 PHP 29,548. 05 PHP 8,375. 50 PHP 6,420. 00 PHP 3000. 00 PHP 50,159. 68 Table 4. 5. 1 Revenue Projections March Product Original Turon with Langka Turon with Macapuno Turon with Ube Turon with Pineapple Drizzle Milk Chocolate Strawberry Honey Buko Juice Price PHP 10. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 3. 0 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 8. 00 Quantity Demanded 3465 1512 1353 600 392 473 315 180 180 1800 Total Projected Revenue PHP 34,650. 00 PHP 22,680. 00 PHP 20,295. 00 PHP 9,000. 00 PHP 5,872. 50 PHP 1,417. 50 PHP 945. 00 PHP 540. 00 PHP 540. 00 PHP 14,400. 00 PHP 110,340. 00 April Product Original Turon with Langka Turon with Macapuno Turon with Ube Turon with Pineapple Drizzle Milk Chocolate Strawberry Honey Buko Juice Price PHP 10. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 8. 00 Quantity Demanded 2723 1134 1107 420 218 675 420 180 180 2100 Total Projected Revenue PHP 27,225. 00 PHP 17,010. 00 PHP 16,605. 00 PHP 6,300. 00 PHP 3,262. 50 PHP 2,025. 00 PHP 1,260. 00 PHP 540. 00 PHP 540. 00 PHP 16,800. 00 PHP 91,567. 50 May Product Price Original Turon with Langka Turon with Macapuno Turon with Ube Turon with Pineapple Drizzle Milk Chocolate Strawberry Honey Buko Juice June Product Original Turon with Langka Turon with Macapuno Turon with Ube Turon with Pineapple Drizzle Milk Chocolate Strawberry Honey Buko Juice July Product Original Turon with Langka Turon with Macapuno Turon with Ube Turon with Pineapple Drizzle PHP 10. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 8. 00 Quantity Demanded 2475 1008 738 420 104 675 420 225 225 2250 Total Quantity Demanded 3465 1260 1107 480 174 675 525 270 270 1800 Total Quantity Demanded 3614 1260 1476 480 174 Projected Revenue PHP 24,750. 00 PHP 15,120. 00 PHP 11,070. 00 PHP 6,300. 00 PHP 1,566. 00 PHP 2,025. 00 PHP 1,260. 00 PHP 675. 00 PHP 675. 00 PHP 18,000. 00 PHP 81,441. 00 Projected Revenue PHP 34,650. 00 PHP 18,900. 00 PHP 16,605. 00 PHP 7,200. 00 PHP 2,610. 0 PHP 2,025. 00 PHP 1,575. 00 PHP 810. 00 PHP 810. 00 PHP 14,400. 00 PHP 99,585. 00 Projected Revenue PHP 36,135. 00 PHP 18,900. 00 PHP 22,140. 00 PHP 7,200. 00 PHP 2,610. 00 Price PHP 10. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 8. 00 Price PHP 10. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 Milk Chocolate Strawberry Honey Buko Juice August Product Original Turon with Langka Turon with Macapuno Turo n with Ube Turon with Pineapple Drizzle Milk Chocolate Strawberry Honey Buko Juice PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 8. 00 743 473 225 135 1500 Total PHP 2,227. 50 PHP 1,417. 50 PHP 675. 00 PHP 405. 00 PHP 12,000. 00 PHP 103,710. 00 Projected Revenue PHP 33,660. 00 PHP 17,010. 00 PHP 25,830. 00 PHP 9,000. 00 PHP 3,915. 00 PHP 2,430. 00 PHP 945. 00 PHP 810. 00 PHP 540. 00 PHP 14,400. 00 PHP 108,540. 00 Price PHP 10. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 15. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 3. 00 PHP 8. 00 Quantity Demanded 3366 1134 1722 600 261 810 315 270 180 1800 Total