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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.

Banaybanay Concepcion, Lipa City, Batangas

ESTABLISHMENT OF CART FOOD MANUFACTURING:

MANUFACTURER OF MA-CA CHIPS
AT LIPA CITY, BATANGAS

A Feasibility Study Presented To The

Faculty of the College Department
Major in Marketing Management
Batangas College of Arts and Sciences, Inc.
Banaybanay Concepcion, Lipa City

In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Business Administration
Major in Marketing Management

by
Aberg Jonh Abu
Ludovico Cruz
Jerwin Reyes
Lovely Tisbe

March 2014

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

APPROVAL SHEET
This Feasibility Study entitled, ESTABLISHMENT OF CART FOOD
MANUFACTURING: MANUFACTURER OF MA-CA CHIPS AT LIPA CITY,
BATANGAS, prepared and submitted by Aberg Jonh Abu, Ludovico Cruz,
Jerwin Reyes and Lovely Tisbe, in partial fulfillment of the requirements for
the degree Bachelor of Science in Business Administration Major in
Marketing Management, has examined and is recommended for acceptance
and approval.
JEAN ROSE M. QUINIA
Adviser
Accepted and approved by the committee:
ROSARIE DE CASTRO-DE LA PAZ, CPA, PhD
Chairman
ROWENA P. SALAZAR, MAEd
Member
CHRISTIAN ALLAN G. CANTOS
Member

Date: March 2014

RENIE M. DE CASTRO, PhD

Dean

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

ACKNOWLEDGEMENT
This Feasibility Study could not have been well done without the
supervision, appreciation and support of some remarkable individuals and
organizations. Therefore, the researchers want to thank each one of them.
To the Batangas College of Arts and Sciences, Inc., for sustaining and
providing quality education in giving the experience of doing this feasibility study
which further enhanced our abilities, skills and knowledge.
To Ms. Jean Rose M. Quinia who provided diligent guidance from the first
step up to the last of the whole complex process leading to the final output.
To the panelists who spent time reading and assessing our paper to
finally give us essential pieces of advice to improve our output.
To our beloved parents for giving us the unending support financially and
morally.
To all the respondents and retailers, who took time to answer the
researchers questionnaires thereby providing us valuable data.
To all our friends who gave encouragement.
And, to the Almighty God who continuously gives mind power and physical
strength in order to finish this feasibility study.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

DEDICATION
This Feasibility Study is dedicated to the researchers families who gave
relentless support morally and financially and thus made this work accomplished
with pride.
It is hoped that fellow students and businessmen will find this Feasibility
Study a good reference for their studies and ventures.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

EXECUTIVE SUMMARY
Title: ESTABLISHMENT OF CART FOOD MANUFACTURING: MANUFACTURER OF
MA-CA CHIPS AT LIPA CITY, BATANGAS
Researchers: Aberg Jonh Abu, Ludovico Cruz, Jerwin Reyes and Lovely Tisbe
Degree: Bachelor of Science in Business Administration
School Year: 2013-2014
Adviser: Jean Rose M. Quinia
This feasibility study aimed to analyze and evaluate the proposed project
to determine its opportunity to subsist in the market.
Business Name
Food is one of the most important commodities in this world. It supports
human life that is why in the world of business, food production is one of those
profitable in the market. With this idea, the proposed business is classified as
one of the food manufacturing businesses. This is named as CART Food
Manufacturing. The proponents emphasized the word CART because it is from
the initial letter of the surnames of the five (5) owners of the proposed business,
namely, C for Cruz, Ludovico , A for Abu, Alberg , R for Reyes, Jerwin and T for
Tisbe, Lovely.
Manufacturing.

Therefore, the proposed name of the business is CART Food

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

Location of the Business

The proposed business will be located at hub of the city of Lipa. This
place is adjacent to different establishments like schools, church and markets
making it accessible to the target market.
Marketing Plan
The researchers gathered information through survey questionnaire, NSO
file government documents, to determine the total population of Lipa City and
its barangays as their target market. By using the Slovins formula, the sample
size computed was 393.
To study the demand and control of the market share-supply, the
researchers did the SWOT analysis of the business and developed marketing
strategies to ensure the success of the proposed business.
Technical Plan
The business will operate 8 hours a day, 6 days a week, 24 days a month
and 288 days in a year. Daily, the researchers will produce 333 packs each with
45 grams of chips. Supplies will be purchased from 3 establishments, namely,
Handyman at Robinsons Lipa City, Batangas, Public Market and, Sampaguita
Store at Lipa City, Batangas.

Energy, water and communication facilities will be

catered by Batelec Electric Power, Lipa City Water District and

Telecommunications respectively.

Globe

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

Management Plan
The organization will hire workers for top, middle and lower management.
General manager and marketing manager must have at least 5 years work
experience in the same field and of 25-35 years old. Production workers may be
male or female but must at least be high school level graduates of 18 30 years
old who are physically fit.
Marketing manager will handle the production to ensure that he/she
promotes good quality of product by means of direct monitoring of the workers.
The management will compensate the lower management-workers with the
minimum wage set by the Department of Labor.
As regards compensation, the general manager and the marketing
manager will receive a monthly compensation of Php10, 000. The management
will provide other benefits like SSS and PAGIBIG.
The four proponents as the capitalists will have an equal contribution to
support the expenses of the business operations.

To maintain good working

environment, policies will be established. Above all, this organization will ensure
compliance with all the requirements of the government.
In terms of production, the management gives 1 hour and 30 minutes
break time at 9:45-10:45am; 11:45-12:45pm and 2:15-2:45pm for worker 1 and
at 10:15-10:45am; 1:15-1:45pm and 2:45- 3:05pm for as regards to the salary.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

Financial Plan
CART Food Manufacturing needs initial capital of Php185,000 which will be
equally shared by the proponents.

To lessen the expenses of preliminary

business operations, the marketing and the general manager will render services
without salary.
Equipment and machinery of the production will be purchased looking into
the quality and durability even if it will be costly to assure continuous business
operations. In purchasing the office supplies the capitalists prefer lowest price
because these are considered secondary need of the firm. In the first 3 years of
production, the CART Food Manufacturing will gradually increase salary rates of
the workers.
Socio-Economic Contribution
CART Food Manufacturing can help support the city government in its
projects in terms of paying taxes. The target market will also benefit buying the
product at affordable price. In addition, other business establishments will gain
extra income as they become suppliers of the proposed business.
The proposed project will foster environmental protection as it advocates
going green

by planting malungay plants to sustain the source of main

ingredient for the product.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

TABLE OF CONTENTS
TITLE PAGE
APPROVAL SHEET
ACKNOWLEDGEMENT
DEDICATION
EXECUTIVE SUMMARY
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF SCHEDULES
LIST OF NOTES
LIST OF APPENDICES
CHAPTER 1- BUSINESS CONCEPT
Introduction
Overview of the Business Concept
Business Name
Objectives of the Study
Scope and Limitation
Definition of Terms
CHAPTER 2 - MARKETING PLAN
Methodology

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

Research Design
Target Market
Data Gathering Instruments
Data Gathering Procedures
Statistical Treatment of Data
Marketing Strategies
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Pricing Strategies
Generalization
CHAPTER 3 - TECHNICAL PLAN
Description of a Product
Uses of the Product
Description of the Process
Manufacturing Process
Time Table
Production Schedule
Direct Materials

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

Indirect Direct Materials

Factory Equipment
Factory Tools and Supplies
Factory Furniture and Fixtures
Office Supply Monthly
Office Equipment
Office Furniture and Fixtures
Maintenance

Supplies

Utilities
Generalization
Chapter 4 - MANAGEMENT PLAN
Capitalization
Organizational Structure
Manpower Requirements
Job Description
Job Specification
Compensation and Benefits
Organizational Policies
Legal Requirements
Generalization

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

CHAPTER 5 - FINANCIAL PLAN

Income Statement
Balance Statement
Cash Flow Statement
Generalization
CHAPTER 6 - SOCIO ECONOMIC CONTRIBUTION
Employment Generation
Social Desirability
BIBLIOGRAPHY
APPENDICES

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

LIST OF TABLES
Table No.

Title

3.1

Production Schedule

3.2

Direct Materials

3.3

Indirect Direct Materials

3.4

Factory Equipment

3.5

Factory Tools and Supplies

3.6

Factory Furniture and Fixtures

3.7

Office Supply Monthly

3.8

Office Equipment

3.9

Office Furniture and Fixtures

3.10

Maintenance

3.11

Utilities

Supplies

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

LIST OF FIGURES
Figure No.

Title

3.1

The Manufacturing Process

3.2

Time Table

4.1

The Organizational Structure

Page No.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

LIST OF SCHEDULES
Schedule No.

Title

Selling Price

Sales Volume

Direct Material Purchases

Direct Materials Used

Direct Labor

Rent Expense

Utilities Expense

Maintenance Expense

Manufacturing Overhead

10-11

Depreciation of Property,
Plant and Equipment

12

Employee Contribution

13

Amortization for Leasehold

14

Employer Contribution

15

13th Month Pay

16

Office Supplies Expense

17

Taxes and Licenses

18
19

Doubtful Accounts Expense

Salary of the Marketing Manager

Page No.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

20

Salary of the General Manager

21

Delivery Expense

22

Advertising Expense

23

Fixed Costs

24

Variable Cost

25

Contribution Margin per Unit

26

Input VAT

27

Freight In

28

Output Vat

29

VAT Payable

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

LIST OF NOTES
Note No.

TITLE

Net Sales

Cost of goods Sold

Operating Expenses

Accounts Receivable

Merchandise Inventory

Plants, Property and Equipment

Leasehold Improvement

Accounts Payable

Page No.

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BATANGAS COLLEGE OF ARTS AND SCIENCES, INC.
Banaybanay Concepcion, Lipa City, Batangas

LIST OF APPENDICES
Appendix

Title

Survey Questionnaire to Retailers

Survey Questionnaire to Consumers

Household Population

Survey Result (Retailer)

Survey Result (Consumer)

Price Quotation

Letters

Certificate of Grammarian

Supporting Documents

Legal Requirements

Schedules

Notes

Curriculum Vitae

Page