Taeng Mabaho

JMJ Marist Brothers
Notre Dame of Marbel University

City of Koronadal, Province of South Cotabato
Chapter I
Introduction
This chapter contains the background of the study, rationale, objectives,
scope, and limitation of the study.
Background of the Study
Humans are mortal beings and we cannot deny the fact that death is part
of our being. Individuals cannot predict what will happen next. Life is finite that is
why people must be prepared on what these uncertainties may bring.
Death is handled based on the culture, beliefs and norms of people
worldwide. Based on the world religion population Christian have a 32.5% in the
total percentage of the population of the world. The Philippines has a total
percentage of 80% Christians who are living in the country, based on the world
population review. Based on the survey of World Bank organization, Philippines
had a 25.02% rate of poverty line in the year 2012. Thus, most of the Christians
prefer to bury their loved ones with descent traditional caskets and based on their
culture and traditional casket. Majority of Filipinos are prefer to bury their loved
ones this way, however, many Filipinos are in the poverty line and thus, cannot
afford metal caskets for their departed love. In the year 1989 a 42-year-old
Filipino inventor had come up with the idea to establish a casket for rent business
that helped the Filipinos who were least favored. Mr. Antonio Andes thought of
undertaking a coffin rental business after he was unable to provide a decent
casket for his sister when she died. Aggravating the pain of his loss, Mr. Andes
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explained his invention was made of two caskets, one inside another. The interior
coffin was made of wood while the outer part, the one that can be rented was
metal. He pointed out that renting a metal casket was practical, with a fee of only
P8, 500, way cheaper than its usual commercial price of P60, 000 or higher
(Flores, 2006).
The inventor said “reusable- disposable” coffin was designed for the poor
and middle-income families who can hardly afford to buy coffin for their dead
because of the prohibitive price that could be as much as P60, 000.00 Andes
explained that his product would lessen the discrimination between rich and poor
families (Escandor Jr., 2000).
A rental or casket-for-rent is a good cost-saving option if you want to have
a traditional casket at a viewing or funeral but don't want to purchase a casket. A
rented casket is a casket that has a removable interior. The remains is placed in
a simple wooden box and the box is placed inside the casket, giving the
appearance that the remains is actually in the casket. In fact, the body never
touches the casket, and the wooden box is easily removed after the service. The
remains can then be buried or cremated in the simple wooden box, and the
funeral home can re-use the rented casket. Purchasing a casket can be a major
expense, and many people either don't have the means to pay for a casket or
would prefer not to spend such a large sum of money. Using a rental casket-for-
rent casket can also be seen as an environmentally friendly option, as the rental
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casket is re-used many times, as opposed to a traditional casket, which is used
only once (Rental Casket, 2014).
Rationale of the Study
The purpose of this study is to provide affordable rented casket for those
families who cannot afford to buy casket for their loved ones. Aside from the
service, the business will have the usual funeral services. Furthermore, through
this added service the bereaved families can at least lessen, burial cost of their
loved ones because they will not have to worry about buying caskets that would
costs them much. This added service will also at least enable the families to
provide a dignified wake for their decrease ones.
Funeral establishment in the City of Koronadal do not offer casket for
rent. Like this project together with the different benefits of this added funeral
services. Moreover, this kind of business must be established in the City of
Koronadal as the central district of South Cotabato and regional center of Region
XII wherein many provinces, municipalities and cities can have access to this
unique service
Objectives of the Study
Generally, the study aims to determine the feasibility of establishing a funeral
service in the City of Koronadal with casket for rent as an added service..
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Specifically, it aims to:
1. Present the funeral services industry.
2. Discuss the feasibility of the proposed study in the following
aspect.
a. marketing,
b. organization,
c. operational/ technical,
d. financial, and
e. socio- economic.
3. Present the findings of the proposed study in the following
aspects.
a. marketing,
b. organizational,
c. operational/ technical,
d. financial, and
e. socio- economic.
Scope and Limitation of the Study
Scope of the Study
There are only five barangays that are part of this study namely,
Avancena, Caloocan, Conception, Namnama, and Paraiso. The respondents
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were the different households from the five barangays mentioned above
specifically the head of the families. The target respondents belonged to Catholic
and non- Catholic religions and except Islam. The City of Koronadal is an ideal
place to put this kind of business because of the following reasons; there are no
funeral establishment that offers this added service, located at the central district
of the province of South Cotabato.
Methodology
Research Design
This study is exploratory and descriptive in nature. It is exploratory
because there is no existing coffin for rent in the City of Koronadal. It tries to
discover the preference knowledge of residence in the City of Koronadal if this
kind of business is desirabler to them and if the people would like to avail this
service. This study is also descriptive in nature since it will describe the major
players in the industry and discuss the feasibility of the proposed study regarding
its different aspects such as marketing aspect, organizational aspect, operational
aspect, financial aspect, and socio-economic.
Research Instrument
This study used survey questionnaire to gather needed data for this study.
A survey questionnaire contained a set of questions designed to yield specific
information to meet a particular need of research information about the study.
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Sampling Method
The research sampling method used in this study was purposive sampling
to obtain a more scientific result that could be used to represent the entirety of
the population. From 27 barangays, top five (5) rural barangays with the highest
number of households were picked through purposive sampling. Rural area focus
was an open swath of land that a few homes or other buildings, with not very
many people. The households in these five barangays were chosen as
respondents of the study.
Research Locale
The study was conducted in the City of Koronadal specifically in barangay
Avancena, Caloocan, Conception, Namnama, and Paraiso. These five
barangays were chosen by purposive sampling method of the study.
Research Respondents
The respondents in this research were the different households of
aforementioned barangays. Furthermore, the respondents belonged to Catholic
and non-Catholic religions except Islam.
Sample Size
The researcher used the Slovin formula (n=N/1+N (e) 2) to determine the
sample size, where n is the desired sample size, N is the to the population, and e
as the margin of error which is 5%. The sample size was 367.
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The researcher used the population by urban and rural barangays,
household population and number of households, for the year 2010. Year 2010
was based on the data gathered in City Hall of City of Koronadal, the latest
document for number of households surveyed.
Table 1.1 Distribution of the sample size of respondents by barangays.
Number of Sample Size per
Barangay Households Computation Barangay
4518/829
Avancena, 829 367/5.45 67
4518/880
Caloocan 880 367/5.13 71
4518/956
Conception 956 367/7.73 78
4518/706
Namnama 706 367/6.40 58
4518/1147
Paraiso 1147 367/3.94 93
Total 4518 4518/1+4518(.05)2 367
Table 1.1 shows the total sample size distributed per barangay.
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Data Gathering Procedures
The data for this research was collected using a survey questionnaire. The
survey was created using suitable questions related to the research and general
information to the respondents. The survey was comprised of seven questions,
which were related to the participant’s perception regarding coffin for rent as an
added funeral service and other services. The researchers made a set of
questions and it was validated by the chosen validators. The researcher made a
letter of permission from the dean, letters of permission to the different barangay
officers, and after the letter of permission had been approved the questionnaires
were distributed through incidental sampling.
Data Analysis
This study used percentage in order to know how many respondents
answered the specific questions. Frequency and percentage were also used to
describe the marketing, operational, organizational and financial aspect of this
study.
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Chapter II
THE INDUSTRY
A funeral industry is a business associated with funerals including funeral
home, crematories and cemeteries, monuments, floral shops and coffins for rent.
It includes funeral parlors, funeral chapels and places used in the preparation,
storage and care of the body of a deceased person for burial.
Funeral services
Funeral services cover all undertakings, embalming, burial site preparation
and crematorium. Funeral services offer caskets; rigid containers which are
designed for encasement and burial of human remains; usually constructed of
woods or metal and lined with fabric. Embalming is a process of preserving the
body by treatment with chemicals. In fact funeral homes offer a range of services
designed to accommodate different wishes and budgets. The most common
types of services offered are funeral homes, traditional funeral service,
immediate burial, direct cremation, cremation with services, donation, memorial
services, graveside services and private service. This business includes a coffin
for rent. Materials used in casket making vary greatly.
The Peace Box is made from card-board, and a deluxe coffin for a head of
state may be made of solid bronze. Wooden caskets may be assembled from
pine boards, or by an expensive hardwood such as cherry or mahogany. Still
others are made of fiber glass. Most caskets, except for the most simple, contain,
in addition to the outer shell, an inner lining. This is typically made of taffeta or
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velvet. The lining may be backed with a batting material, usually polyester, and
cardboard may back the batting. Other materials used in the manufacture of
coffins include steel or other metals for hinges and accessories, rubber, as a
gasket is used to seal the coffin, and paint.
MARKET
The market is divided according to those who make the purchasing
decisions regarding funerals. The market segments for the Funeral are divided
by the generations of decision-makers over age 30.
The GI Generation (born 1901-1924) This generation is age 79 or older as
of 2003. This is the most active market. Its mortality rate is about 12 percent per
year but it makes up only 3.9 percent of Lane County. Because the rate of
dementia is high among this group, if funeral arrangements haven't been pre-
arranged, it's likely their Baby Boomer children are making the arrangements.
The Silent Generation (born 1925-1945). This is the age segment probably
most marketed by existing funeral homes. Its mortality rate is 2 percent per year,
and it's the generation that generally has the most money. It has been called the
Silent Generation because it was sandwiched between the heroic GI Generation
that fought World War II (now sometimes called "The Greatest Generation," and
the explosive Baby Boom Generation (also called the "Me Generation"). Many of
the Silent Generation have been strongly influenced by the cultural revolution of
the Baby Boom Generation. Widows are 67 percent of surviving spouses in this
age group because their husbands generally die first. This relatively wealthy
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generation has always been financially conservative, but at this point, is more
willing to splurge. It is currently driving the high-end motor home market. This
generation is aged 58 to 78 years as of 2003 and composes 15.9 percent of the
local population.
Boomers (The post-World War II "baby boom generation" born 1946
through 1964.) Members of this generation are increasingly involved in funeral
decisions as their parents, spouses or children die. This age cohort is currently
age 39-57, years as of 2003, and comprises 27.2 percent of the Eugene-
Springfield MSA, and over half of the demographic that makes funeral decisions.
This is nearly twice the number of the Silent Generation cohort. Its mortality rate
is currently only 0.3 percent, but is poised to grow rapidly over the next 35 years.
It also makes many of the decisions for older and younger cohorts.
Generation X (1965-1980) this is the youngest cohort to make funeral
decisions, with only members of this generation age 30 or older included as a
market segment. Generation X members over the age of 30 comprise only 7.9
percent of Lane County, its mortality rate is low and it probably has the least
input into the decisions about funerals. This generation challenges authority, is
environmentally and socially concerned and watches its health. It's more
interested in quality time and peace of mind than in materialism. The members of
this cohort age 30 to 38 years makes up 7.5 percent of the MSA.( NA, market
analysis, 2014)
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In the Philippines, the estimated cost for a middle-class burial can set one
back between P50, 000 and P100, 000, depending on the casket of choice,
funeral and wake services, chapel size, and length of time of the wake.
Trimmings add costs too. Several factors outside the control of service providers
have hiked casket prices. These factors include the rise in prices of casket raw
materials, like bronze and wood, as well as import taxes and fuel. However, with
the entry of new players and the network expansion of existing funeral parlors,
competitions have kept price increases to a minimum. Prices of funeral and wake
services have risen by around 10%, according to Rafael S. Jose, president of
Arlington Memorial Chapels & Crematory. (Lowe, 2012)
Capacity of the Industry
There are many existing industries and most of them have already the capacity
to cater big services in terms of funeral services. There are three (3) existing
funeral establishment in the City of Koronadal. These businesses flourish
because of the infinite demand for funeral services. They have already
established their names in the market with strong foundation because of
customer's loyalty.
Major Players of the Industry
 Southern Funeral Home General Paulino Santos Drive Poblacion, Marbel
South Cotabato.
This business was established long ago, and also offers funeral services.
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 St. Peter Life Plan INC. Koronadal City
St. Peter Koronadal offers different funeral services. This business does
not only exist in the City of Koronadal but in different places in the
Philippines. This business accepts memorial plan that can help their
customer to be prepared when they passed away.
 Allen Memorial Home, Gensan Drive, City of Koronadal
This business offers funeral services that can help their customers to be
prepared when they passed away.
Key Success Factors
Maintenance of cleanliness
Maintenance of cleanliness especially in the toilet and hand washing
facilities, clean and accessible toilet facilities for female, male and disabled
persons or personnel shall be provided in properly located areas. Adequate
lavatories with sufficient supply of soap water and hand dryers shall be provided
in washing areas to prevent bacteria or cause of sickness to users.
Solid waste management
The funeral establishment shall have a strategic area for the burial ground
that shall have at least two refuse receptacles or containers. One for the
biodegradable and another for non-biodegradable materials provided with tight
fitting cover to protect the againts any kinds of sickness.
Quality goods and services
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Funeral services provide goods and services for the highest satisfaction of
the customers. In terms of services, the funeral shall serve their customers with
all their best.
Affordability
We all know that burial is an expensive occasion for a family. Affordable
goods and services can lessen the expenses of these families, and funeral
entities can help them not only in providing their usual, services.
Government Policies
Requirements for Locational Clearance/Other Permits
1. Vicinity Map
Drawn to the scale of 1:10,000, the map shows clearly and specifically the exact
location of proposed site and all existing adjacent land uses/establishments
within 500-meter radius.
2. Site Development Plan
Drawn to the scale of 1:200 indicating lot property boundaries, the map provides
building layout and future expansion area (if any), entrance or exit to the main
service road and parking areas.
3. Transfer Certificate of Title (TCT) or contract of sale or lease together with an
approved survey plan if available.
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4. After securing a locational clearance, obtain an initial clearance from the city or
municipal health office shall be obtained showing that the plans are in
accordance with the provisions of PD 856 per Funeral Establishments Category
I, II and III.
5. Floor plan showing the different areas or rooms within the building.
6. Environmental Compliance Certificate (ECC) from DENR for Category I
project, prior to the application for building permit.
B. A Locational Clearance is required for all proposed Funeral Establishments to
be located in cities and municipalities with or without Comprehensive Land Use
Plans and/or Zoning Ordinances.
Table 2.1 Schedule of Taxes and Licenses
DTI Registration P500.00
BIR Registration P1,000.00
Mayor's Permit P5,000.00
Environmental Fee P1,000.00
Barangay Clearance P 500.00
Bureau of Fire Protection P500.00
Sanitary Fee P500.00
Total P9,000.00
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Sanitary and Utility Requirement for Funeral Chapels (as per IRR Chapter
XXI of the Code on Sanitation of the Philippines PD 856)
1. Funeral chapels shall be adequately lighted and ventilated. Power supply
shall be connected to an approved public or commercial power supply
system. In addition, a standby power generator must be provided.
2. Each funeral establishment shall be provided with sanitary facility as per
DOH standard.
3. There shall be adequate potable water always available for use of its
personnel and visitors. Where available it shall be connected to an
approved public or community water system.
4. The food preparation area shall be in accordance with Chapter III - "Food
Establishments" of the Code on Sanitation of the Philippines (PD 356) and
its implementing Rules and Regulations.
5. A DOH approved sewage disposal system shall be provided subject to the
requirements of the Code on Sanitation of the Philippines (PD 856) and its
implementing Rules and Regulations.
6. There shall be two (2) waste receptacles one for biodegradable and the
other for non-biodegradable waste with tight-fitting cover and placed in
appropriate visible location for easy access and collection in accordance
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with Chapter XVIII - "Refuse Disposal" of the Code on Sanitation of the
Philippines (PD 856) and its Implementing Rules and Regulations.
7. A regular vermin abatement program shall be maintained in accordance
with Chapter XVI - "Vermin Control" of the Code on Sanitation of the
Philippines (PD 056) and its Implementing Rules and Regulations.
Sanitary Requirements for Embalming and Dressing Room (as per IRR of
Chapter XXI of the Code on Sanitation of the Philippines PD 856)
1. Embalming and dressing rooms shall be constructed of concrete or semi
concrete materials.
2. There shall be provided a minimum working space of 1.50 m. x 2.0 m. for
every remains.
3. The floor shall be constructed of concrete or other impervious or easily
cleaned material that is resistant to wear and corrosion and shall be
sloped to drain; all angles between the floors and the walls shall be
rounded off to height of not less than 7.62 cm. (3 inches) from the floor.
4. Floor drains shall be provided. It shall be constructed and sloped to drain
that all washing and body fluids shall flow to waste water treatment facility
separate from the septic tank. AH solid wastes which include pathological
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and infectious wastes shall be placed in receptacles lined with yellow
plastic bag while sharps shall be placed in receptacles lined with red
plastic bag or any approved type of sharps collector.
5. The internal surface of walls shall have a smooth, even, non-absorbent
surface easily cleaned without damage to the surface and constructed of
dust-proof materials.
6. AH ceilings or if no ceiling is provided, the entire under-surface of the roof
shall be dust-proof and washable.
7. All lightings shall be free from glare and distributed so as to avoid
shadows.
8. Ventilation shall be provided which shall be effective and suitable to
maintain comfortable condition. The natural air supply in any room shall in
no instance be less than 0.005 cubic meters per second per person.
9. Embalming shall be performed on a table made of single marble slab or
aluminum, stainless steel or other equally impervious materials with a
minimum size of 0.60 x 1.80 m.
10. Embalmers and assistants shall use personal protective equipment such
as rubber gloves, aprons, boots and safety goggles while working.
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11. Washing facilities with soaps, detergents and germicidal solutions shall be
provided for use of the working personnel.
12. Embalmers and assistants shall be provided with lockers and closets for
personal protective equipment and a separate closet for chemicals used
for embalming.
Sanitary Requirements for Morgue (as per IRR of Chapter XXI of the Code
on Sanitation of the Philippines PD 856)
1. Location
The morgue shall be constructed either as a separate structure or part of
the funeral and embalming establishments. In either case, strict privacy must be
maintained.
2. Size
The size of the morgue depends on the number of remains to be stored.
The cadavers shall be contained in tanks divided into compartments. Each
compartment must have the following dimensions: length of 250 meters, width of
1.50 meters and a depth of 2.50 meters. Every compartment shall be provided
with a drain pipe leading into a separate compartment shall be provided with a
drain pipe leading into a separate waste water treatment facility from the septic
tank. The cover of each compartment shall be provided with tight fitting
lids.
3. Lighting and Ventilation
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The aggregate window area shall not be less than 1/10 of the floor area.
The room shall be well ventilated and well lighted. In addition to those openings,
exhaust ducts of at least 1/50 of the floor area shall be provided in the ceiling or
as close to the ceiling as possible.
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Chapter III
Marketing Strategy
This chapter shows the marketing aspects of the business. the marketing
aspects will cover the following: target market, demand and supply, competition
and the marketing program which includes promotion, channel distribution,
pricing strategy and the projected sales and cost.
For the business to prosper, it should be given time and effort. the
proponent of this business must have the desired creativity so as to be able to
provide quality service to its customers. the fulfillment of the needs and wants of
its customers or target market must be the key objectives of the recommended
business.
Target Market
The business will cater to the burial services of households of the City of
Koronadal especially barangays that belonged to rural areas.
Demand
The demand in this project is based on the total population of the rural
area which is 43,253 and the mortality rate of 5.01% annually according to on the
City Hall record of the City of Koronadal. To determine the projected demand for
coffin for rent, a survey was conducted among households from the five
barangays of the City of Koronadal, namely Brgy Paraiso, Concepcion,
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Avaceña, Caloocan and Namnama. The table below shows the demand of this
business.
Table 3.1 the frequency and percentage of households based on our survey that
wants to avail coffin for rent business.
Frequency Percentage
Yes 308 84%
No 59 16%
Total 367 100%
Table 3.1 shows that out of 100%, 84% of the respondents said that they
were willing to avail coffin for rent while 16% of the respondents said that they
didn't want to avail this coffin for rent that services. This result implies that there
is a big fraction of our service coffin for rent will be viable to the target
consumers.
Table 3.2. The number of respondents of each barangays.
Barangay Yes No Total
Paraiso 71 22 93
Concepcion 64 14 78
Namnama 50 8 58
Avancena 58 9 67
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Caloocan 65 6 71
Total 308 59 367
Table 3.2 shows that majority of our respondents wanted to avail, of the
coffin for rent business, and, among the five respondents Brgy. Paraiso had the
higher number of households who wanted to avail of the service because it is
considered a rural area.
Table 3.3 Total demand based on the population
Number of Percentage of Demand
Positive Number of Demand Per
Barangay Respondents Households Population Barangay
Avancena, 71 829 23% 191
Caloocan 64 880 21% 183
Conception 50 956 16% 242
Namnama 58 706 19% 133
Paraiso 65 1147 21% 346
Total 308 4518 100% 1095
The table shows the total number of positive respondents, the Number of
households, the percentage and the total demand per barangay. Based on the
conducted survey there were 308 family heads had positive response. To get the
percentage of demand, the number of positive respondents per barangay were
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divided by the total number of positive respondents and multiplied by the number
of households to get the demand per barangay.
Supply
Based on the research conducted, the three major suppliers in the City of
Koronadal are the Southern Funeral Home, St. Peter Life Plan, and Allen
Memorial Home. These three (3) major suppliers offered products and services in
the same market.
Table 3.4 The supply of every competitor.
Estimated Supply Estimated Supply Total Supply
of Coffin per of Coffin annually
month
Southern Funeral 27 324 324
Home
St. Peter Life Plan 45 540 540
Allen Memorial Home 24 288 288
Total 96 1152
Table 3.4 shows the estimated supply of every competitor of their goods
and services annually. St. Peter has a higher demand among others. This was
based on the survey conducted by the researcher to the different major funeral
services here in the City of Koronadal.
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Businesses exist in a competitive environment. Funeral services are in
fierce competition with each other to provide the best possible value of the
products and services with quality and uniqueness suitable for their customers.
Within-no cost a market businesses faced by direct competitors. These are firms
producing the same or very similar goods. With regards to our consideration
about the competition, researcher include that the three major funeral services
here in City of Koronadal, are the Southern Funeral Home, St. Peter Life Plan,
and Allen Memorial Home.
Demand and Supply Analysis
Table 3.5 Demand and Supply
For Coffin for rent Supply Market Gap
1,820 1,152 668
Computation Computation
43,253*.0501= 2,167 The 1,820 - 1,152= 668
total demand for coffin
2,167 * .84= 1,820
Demand for coffin for rent
Table 3.5 shows the market gap of the demand and supply of the products
and services of the business. The total population of in the rural area is 43,253
with mortality rate 5.01%. To get the number of individuals who will die, the total
population is multiplied with mortality rate. Since we conducted the survey, and
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as shown in table 3.1, that out of 100%, 84% would like to avail of the products
and services that the business offer To get the market gap of demand and supply
we multiply the total number of individual who will die as the result of the survey.
In table 3.3, it shows the total supply of three major competitors namely
St. Peter Life Plan, Southern Funeral Home and Allen Memorial Home is 1,152 of
their funeral services offered. Thus, they cannot meet the demand of the
consumers of the funeral services.
The production of three major competitors is not enough to supply the
demand of the consumers. Hence, the demand and supply analysis is
advantageous on the part of the proponents to meet the demand of the
consumers.
Market Strategy
Promotion
In this study the researcher identified three (3) strategies help the
business to encourage customers to purchase or avail products and services that
it offer. There are: 1) Tarpaulin and leaflets 2) radio Ads and 3) sales agent.
Table 3.6 Tarpaulin and leaf lets.
Size Quantity Price Total
Tarpaulin 3 '4 10 P 150 P 1500
Leaf lets 1/4 size of 200 P 2/ each P 400
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paper
Total P1,900
This tables shows the business exposures while to promoting its products
and services by using tarpaulin and leaflets.
Table 3.7 Radio Ads
Minutes Total Total
Happy FM 30 seconds P22,500/month P270,000/year
(channel;91.7)
Table 3.7 shows the use of radio ads to promote its products and services
to the target (households of rural areas of City of Koronadal:) It will also promote
the Heaven Know's funeral home thrice a day.
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Table 3.8 Sales Agent.
Demand Sales Total Total
commission for
sales
Metal 436 P300 P130,800
Steel 346 P200 P69,200
Wood 1,038 P100 P103,800
Total 1,820 P600 P303,800
This table shows that the Sales agent obtains orders for those companies
and is paid commission on those orders.
Channel Distribution
Funeral services use a direct channel of distribution to a consumer without
the help of intermediaries. A direct chain of distribution may involve face-to-face
sales, computer sales, or mail order but does not involve any form of distributor
other than the original producer. Below shows the process of distributing
products to consumers.
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Figure 3.1 Channel of Distribution
Renting
Producer Distribuion
Consumer
Figure 3.1 shows the distribution process of the product (the renting of the
coffin). Consumer first inquires for the rent of the coffin, second, is the distribution
of the coffin to the consumer, and after its use, it will back returned to the service
owner.
Pricing Strategy
The pricing strategy includes the prevailing prices of the product and how
much customers are willing to pay to purchase or avail the services and products
that the business offers. The results were based on the survey that the
researcher conducted from different selected barangay's with the head of the
family as target market.
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Table 3.9 Prices of Coffin
Kinds of Coffin Price
Metal P13,000
Steel P8,000
Wood P4,000
The Table3.8 shows the different prices offer of the business. The prices
were based on the survey that the researchers conducted.
Table 3.10 Other Funeral Services.
Other Services Price
Embalming P7,000
Beautification P800
Decoration P500
Funeral Services P600
Total P 8,900
Table 3.10 shows that aside from coffin for rent, the business has other
services offered. These prices were based on actual operation of the different
funeral homes existing here in the City of Koronadal.
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Chapter IV
Organizational and Management Aspect
This chapter tackles the entire organizational arrangement of business.
The management aspect suggests a clear and precise identification of duties and
responsibilities, flow of authority and manpower level requirement. This contains
the organizational chart and the qualifications of the people involved in the
formation of the business organizational structure.
Type of Organization
The researchers' identified this type of business as a sole proprietor
ownership and will be named "Heaven Knows Funeral Home". This form of
ownership is chosen because management and operation of business are very
simple. Below is the organizational structure of the business.
Organizational Structure
Figure 4.1
Manager
Office Staff
Operational Marketting Financial

HR Department
Department Department Department
Funeral Lisence HR/Administrator

Chapel Staff Driver Attendant Utility Marketing Staff Bookkeeper
Decorator Embalmer Staff
Make-up Artist Cashier
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Figure 4.1 shows the organizational structure of the business wherein, on
the top is the manager. Under the manager is his/her office staff. Below are four
horizontal made up of positions the operational staff, marketting staff, HR/
Administration staff and the bookeeper. Under the operational department are
the chapel staff, funearal decorator, license embalmer who supervise the make-
up artist. Along with the position the embalmer is the driver, utility and cofin
maker. The bookeeper supervised the cashier. Each positions has its own
functions and connections that will help the business to provide on its very own,
the best service and products to the target market.
Manpower Requirements
Table 4.1. Manpower
Positions Number of Monthly SSS PHILHEALTH PAG-
Manpower Salary IBIG
Manager 1 P 15,000 P 1,060 P 187.50 P 100
Office Staff 1 P 7,150 P 494.70 P 87.50 P 100
Chapel Staff 2 P 7,150 P 494.70 P 87.50 P 100
License 1 P 15,000 P 1,060 P187.50 P 100
Embalmer
Driver Attendant 2 P 7,150 P 494.70 P 87.50 P 100
Utility 2 P 7,150 P 494.70 P 87.50 P 100
Funeral Home 2 P 7,150 P 494.70 P 87.50 P 100
Decorator
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Make-up artist 1 P 12,000 P 884.00 P 150.00 P 100
Bookkeeper 1 P 10,000 P 706.70 P 125.50 P 100
Cashier 1 P 7,150 P 494.70 P 87.50 P 100
HR/ 1 P 7,150 P 494.70 P 87.50 P 100
Administrator
staff
Marketing Staff 1 P 7,150 P 494.70 P 87.50 P 100
TOTAL 16 P125,200 P7,668.30 P 1,325.50 P 1,600
Table 4.1 shows the number of employees and the position needed to operate
the business and the benefits for every employee.
Compensation and Benefits
The coffin for rent and its added funeral services will contribute to the
payments of SSS, and Philhealth, and Pag-ibig funds.
 Philhealth- members are given health and hospitalization subsidies. The
monthly contributions are based on actual employee salaries and the
amount of employee contribution is matched equally by the employer.
 SSS- the premium contribution as one of the benefits to the employees in
safeguard in times of sickness, disability, old age, maternity, and other
purposes.
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 PAg-ibig- employees are required to contribute half of the premium
contribution of their employees as mandated in the Labor code of the
Philippines.
 13th Month Pay- All the employee is entitled to a year-end bonus
equivalent to one (1) month salary. The "Heaven Knows Funeral Home"
will give their employees the 13th month not later than December 24 every
year to make Christmas and New Year celebration memorable in them.
Table 4.2 Duties and Responsibilities
Positions Duties and Responsibilities
The manager oversees daily
production, work schedules, assigns
employee tasks, ensures product
quality and keeps facility running and
clean. His/her job includes planning,

Manager
organizing, directing and controlling all
the employees of the organizations as
well as employees relationship to each
other. He/ she is responsible in
checking sales records and in
purchasing raw materials.
Office Staff The office staff is responsible in
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monitoring and informing appropriate
employee regarding guest requests for
each department. He/she maintain's
records of guest visits in log books and
maintains office phone list to help
visitors and employees in all
communication. He/she will provide
external support to electrician,
locksmith, and janitor and maintain
security.
He/she disinfects or preserves
dead human bodies by injection or
external application of antiseptics,
disinfectants or preservative fluids;
License Embalmer prepares human bodies for
transportation prevents of contagious or
infectious diseases; or uses derma
surgery or plastic art for restoring
mutilated features.
The driver attendant is responsible for
Driver Attendant maintaining professional
communication with clients and
ensures safe and efficient delivery of
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products to the customers, the most
common factor that contributes to the
growth of business.
He/she maintain the cleanliness of the
funeral home. Keeps buildings in clean
and orderly condition. Perform heavy
cleaning duties such as cleaning floors,
shampooing rugs, washing walls and
Utilities glass, and removing rubbish. Duties
may include tending furnace and boiler,
performing routine maintenance
activities, notifying management of
need for repairs, and cleaning debris
from sidewalk.
He/she design and beautify rooms. A
person whose job is to design the
Funeral Home Decorator interior of someone's' funeral home by,
choosing colors, carpets, materials and
furnishings.
Make Up Artist The one who beautify the faces of
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deceased customer. An artist whose
medium is the human body, applying
make-up and prosthetics for theatrical,
television, film, fashion, magazines and
other similar productions. A
professional artist that uses mediums
applied to the skin to transform or
enhance faces of the customer.
He/.she maintains the financial records
of the business. His/her transactions
include purchases, sales, receipts, and
payments by an individual person or an

Bookkeeper
organization or corporation. He/she has
the skill of keeping account books or
systematic records of money
transactions.
He/she works at by recieving money,
makes change, issues receipts and
ogenerally helps to facilitate customer

Cashier
transactions. A cashier is a person who
handles the cash register at various
location such as the point of sales in a
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retail store.
He/she is in charge of the department
that deals with employment, training,
support, records an other activities of a
company's, employees. He/ she is

HR/ Administrator staff
responsible for providing support in the
various human resource functions,
which include recruitment, staffing,
training and development, performance
monitoring and employee counseling.
He/she is responsible for promoting
Marketing Staff and driving the sales of a company's
goods or services. A marketing staff
supports the marketing department by
carrying out the daily tasks to keep the
department functioning, and facilitates
the duties of the marketing manager
and account executives.
Table 4.3 Qualification
Position Qualification
Manager  Bachelors Degree in Business
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 2 years of experience managing
a certain business
 Capable to planning and
organizing events and promoting
the organization image for due
recognition at public or
institutional level
 He/she has knowledge in
principles and processes in
providing customer services;
including customer needs
assessment, meeting quality
standards for services, and
evaluation of customer
satisfaction
 Knowledge in administrative and
clerical procedures and system
such as word processing,
managing files and records,
transcription, designing forms
and other office procedures.
Office Staff  A college Graduate of any four
year course
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 He/she must be proficient in
MS word, Excel and Internet for
email and website usage
 He/she must have good
command of the English
language
 He/she must have a pleasing
personality
 He/she must be highly organize
and systematic
 Shall have a Degree in
License Embalmer Embalming Profession
 Has 2-5 years of experience
 Physically fit.
 High School Graduate or knows
how to read and write.
 Shall have a valid driving
Driver Attendant license
 He/she should be above a
minimum age limit of 18.
 He/she must have good
interpretational skills and
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should be able to read road
maps efficiency.
 He/she should have good
driving records and sound work
ethics.
 High School graduate.
Utility  Has knowledge in cleaning
different areas given
 Capable of heavy work
 High School Graduate
Funeral Home Decorator  Knowledge in decorating home
services
 He/she needs less supervision.
 A professional Makeup artist

Make-up artist
 Has 2-3 years experience in
their profession
 Associate or Bachelor degree
preferred
Bookkeeper  Has a high degree of
proficiency in office procedures,
typing and machines
 Has 2 years, bookkeeping
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experience.
 Has knowledge and practical
experience in basic book
keeping and beyond.
 He/she must maintain
confidentiality at all times
 Has at least 2-3 years prior
experience in similar capacity
and with total reliability
 Has experience with
automated system
Cashier  Has proficient listening and
communicating skills
 He/ She is an expert
counting and mathematical
skills
 Has knowledge about all
kinds of cash transactions
 Has four solid years, in the
HR/Administrator staff human resource field.
 Has extensive background in
recruiting
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 Has ability to maintain high
level of confidentiality
 Has quality writing and
communication skills
 Has strong ability to multi-task
under pressure
 Has knowledge of Philippine
Employment Laws
 Has advance knowledge and
proficiency in Microsoft Excel,
Word, Access an Outlook
 Has 2 years experience in
product sales within
communication field
 Has a Bachelors degree in
Marketing and Skills in delivering
Marketing Staff quality customer and sales
support
 Has proven track record of
maximizing sale revenues and
meeting corporate objectives
 Has solid planning, forecasting
and communications skills.
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Figure 4.2 Recruitment Procedures
Checking
Application Examination Final Interview
Requirements
Completion of
Hiring Orientation
requirements
The figure above shows the process of recruitment procedures, the
applicant must submit the application form, when he/she accomplishes the
requirements for job, he/she proceeds undergo to examination. The applicant
takes the final interview, and then he/she is hired if qualified then submits
orientation.
1. Application
Is a form that an individual seeking employment, must fill out as
part of the process of informing an employer of he/she availability and
desire to be employed, thereby persuading the employer to accept the
applicant.
2. Checking Requirements
The applicant should check the difference requirements needed by
the business.
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3. Exam
The applicant undergoes examination that he/she is provided the
application form and the requirements that the firm required.
4. Final Interview
The applicant will be called for his/her final interview when he/she
pass the examination.
5. Hiring
Hiring is a contract by which one person grants to another either
the enjoyment of a thing or the use of its labor and industry, either for
himself for his servant, during a certain time, for a
stipulated compensation, or where one contracts for the labor or
services of another about a thing opened to him for a specified
purpose.
6. Completion of Requirement
The applicant complies all his/her required requirements to start
his/her job applied for.
7. Orientation
An introductory stage in the process of new employee's assimilation,
and a part of his or her continuous socialization process in an
organization.
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Table 4.4 Training Program and Incorporate cost
Training program Schedules Incorporate Cost Total cost
Management Quarterly P5000/quarter P20,000
Program
Services Quarterly P3500/quarter P14,000
Defensive Program Quarterly P2500/quarter P10,000
Total P11,000 Total
P44,000
Management Program
The Management Program will provide the head of a specific program to
acquire have a basic understanding of people management, strategy, finance,
marketing and business operations, and the way how these functions integrate
for organizational success. Management program is an important tool to gain key
insights from experts in each field and sharpen every decision-making in order to
employ an integrated approach to the management of a business.
Services
Customer service training programs offer innovative ways to gain
employee commitment to organizational objectives through workplace learning
and development. Customer care training is crucial for any organization that
works with customers or clients. Not only does each interaction between
employee and customer affect the number of customers retained, but employees
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JMJ Marist Brothers
with effective customer service skills will feel a greater sense of engagement and
commitment to their job. These skills make a positive impression in the minds of
current and future customers. The training provides advanced customer service
tips for organization based on the content area or competency that will give
improvement. This is learning about customer service skills, building customer
loyalty, creating effective first impressions, managing customer expectations, and
more by filtering through training and development workshops.
Defensive Program
A defensive driving safety program can reduce risk and keep people safer
on the road. It is an effective solution to keep safe and sound. This is control
liability costs associated with work-related vehicle crashes, to reduce insurance
premiums and fleet repair bills, reduce motor vehicle incident rates, decrease
workers' compensation claims, Improve productivity by keeping employees safe,
on and off the job, and to protect your brand by improving public perception of
your driving practices.
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Chapter V
Operational/Technical Aspect
This section includes the product technical description, operation/
manufacturing process, plant size and production schedule, machineries and
equipment, location and layout, raw materials, utilities, and waste disposal.
Product Description
This study has three kinds of caskets; the metal, steel and wooden casket.
It describes the quality, the color and the size of the caskets.
Figure 5.1 Metal Coffin
Metal casket has two components; these are the Bronze and the Copper.
Bronze caskets combine quality construction and beautiful finishes. It is superior
to all other casket materials in strength, durability and naturally non-rusting
qualities. Each bronze casket is equipped with a one-piece rubber gasket,
helping to resist the entry of air, water or soil into the casket. A wide variety of
styles, colors and features in bronze are available, allowing customers to select a
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casket that is suited to individual preferences. Copper caskets are naturally non-
rusting. It features a one-piece rubber gasket to help resist the entrance of
outside elements. Available in wide variety of styles, colors and features to offer
that are suited to individual preferences.
Figure 5.2 Steel Coffin
Stainless steel is known for its quality and longevity, making it a valued
material for casket construction. The grade of stainless steel is determined by the
amount of chromium and nickel content, the higher the content, the higher the
quality of the steel.
Figure 5.3 Wood Coffin
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Wood caskets have the qualities of natural wood. It induces warmth,
beauty and personality in bringing to fine furniture to makes this material ideally
suited for caskets as well. Models are offered in a variety of wood species
including mahogany, walnut, cherry, maple, oak, pecan, pine, ash, sycamore and
poplar. With a wood casket, you’ll find there is no substitute for quality,
craftsmanship and attention to detail.
Other services offered this kind of business are embalming, beautification,
funeral home and decoration during wake. Embalming is the art and science of
preserving human remains by treating them (in its modern form with chemicals) to
forestall decomposition. The intention is to keep them suitable for public display at
a funeral, for religious reasons. Beautification is the process of making visual
improvements to a person, place, or thing. Funeral home is a place where dead
people are prepared for burial or cremation and where wakes and funerals are
held. This business also provides interment and funeral services for the dead and
their families. These services may include a prepared wake and funeral, and the
provision of a chapel for the funeral. Decoration is the process or art of decorating
or adorning the place of the dead person or the funeral home where the dead
body stays during wake time.
Based on the survey that researcher conducted in different five barangay's
here in Koronadal City, out of 367, head of family the approximate member that
wants to avail metal coffin is 72, steel coffin 58 and wood 178 family heads. The
funeral business store will close every Sunday so it is expected that the store will
operate approximately 288 days every year.
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Machineries and Equipment
The business needs various machineries and equipments to effectively
and efficiently operate. These are the following machineries and equipment that
can be used in operating the coffin for rent.
Table 5.1 Office Supplies
Quant Description Useful Total cost
ity Unit Cost Life
A device that used to
encode the prices of the

5
1 Computer different products that would P14,500.00 P14,500.00
years
be displayed together with
the coffin for rent business.
A device to encode the
prices of the different

CCTV 5
2 products that would be P6200/each P12,500.00
Camera years
displayed in the coffin for
rent business.
Is a device that lowers the
air temperature inside the

Air 10
3 business establishment to P8499/each P25,497.00
Condition years
keep the temperature cool
during the entire working
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day.
Used to print for sales
Office reports of the company and 5

1 P2,295.00 P2,295.00
Printer letters regarding to the years
business transaction.
Exhaust A fan that moves air out of 10

3 P960/each P2,880.00
Fan an enclosure years
Fire 5 lb water-based
12
2 Extinguish extinguisher as prescribe by P6375/each P12,750.00
years
er city regulations
An item of furniture
comprising a seat, legs,

3 P1,200.00
10 Chairs back, and sometimes arm P120/each
years
rests, on which or in which
one people can sit.
Total
P71,622.00
Tables 5.1 are the Office Supplies that the business used its operation.
There are the materials that are used within an office setting during normal
business operation.
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Table 5.2 Embalming tools.
Description Useful Total cost
Quantity Item Price Life
Super drain Used to drain

P9,950.00
5 Tube 5/16" the fluid P1990/each 5 years
Super drain Used to drain

P9,950.00
5 Tube 3/8" the fluid P1990/each 5 years
Used to hold
Suture needle body tissues P8,770.00
10 set together P877.00 5 years
Angular Vein Used for
Forcep 12.7" grasping or P3,750.00
5 Shank holding things P750/each 5 years
Used to connect
Arterial tube slip segment of P3,000.00
5 hub 3/16" tubular P600/each 5 years
Used to connect
Arterial tube Slip segment of P3,000.00
5 hub Cvd 1/8" tubular P600/each 5 years
Used to connect
Arterial Tube segment of P3,000.00
5 Slip Hub 3/32" tubular P600/each 5 years
5 Stub Carotid Used to carry P600/each 5 years P3,000.00
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1/4" Cvd Slip the blood in
hub tubular
Used to carry
Aneursym Hook the blood in P1,750.00
5 Cradle Handle tubular P350/each 5 years
Used for
Artery Forceps grasping or P2,150.00
5 6 1/4" holding things P430/each 5 years
R-P Artery Used for
Forceps 6 1/4" grasping or P2,150.00
5 Cvd holding things P430/each 5 years
Fixation Used for
Forceps 5 1/2" grasping or P2,000.00
5 Str 2 hole holding things P400/each 5 years
Lister Bandage Used to cut

P1,170.00
5 Scissors 5 1/2" P350/each 5 years
Used for
Dressing grasping or P1,500.00
5 Forceps 8" holding things P300/each 5 years
Used for
Dressing grasping or P1,000.00
5 Forceps 6" holding things P200/each 5 years
5 Operating Used to cut P260/each 5 years P1,300.00
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Scissors 5 1/2"
S/S
Operating
P1,000.00
Scissors 5 1/2" Used to cut
5 S/B P200/each 5 years
Total P58,440.00
Table 5.2 are the equipments used to preserved the dead body preventing
decomposing.
Table 5.3 Chapel Equipment.
Quantity Unit Description Price Useful Life Total cost
Chapel A set of furniture
Furniture used to display in P26,500.00
1 Set Deluxe the chapel. P26,5000 10 years
Is a piece of
furniture with a
raised surface
P2,400.00
commonly used to
seat a single
20 Chairs person. P120/each 3 years
Total P28,900.00
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Table 5.3 shows the materials to be used in organized prayer, masses and
days of wake of the dead body.
Table 5.4 Estimated Building Cost.
ESTIMATED BUILDING COST

A. MATERIAL COST
Concrete Works 150,000.00
Foundation and Post 110,000.00
Roof and Roof Framing Works 105,000.00
Masonry Works 80,000.00
Windows and Doors 25,000.00
Steel Works 101,820.00
Amenities 10,000.00
Painting Works 47,700.00
Electrical Works 30,260.00
Plumbing Works 81,400.00
TOTAL MATERIAL COST 741,180.00
B. LABOR COST
SKILLED WORKERS Rate per No. Of No. of Total Rate
day days Personnel
Foreman 300 70 1 21,000.00
Mason 300 70 3 63,000.00
Carpenter 300 70 5 105,000.00
Steel Man 300 70 3 63,000.00
Welder 300 70 1 21,000.00
Laborers 200 70 6 84,000.00
TOTAL LABOR COST 357,000.00
C. OTHER EXPENSES 20,000.00
GRAND TOTAL 1,118,180.00
Tables 5.4 are the materials, skilled workers with their wages for used to
constructing the building.
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Land
To build the business it needs to have a land to construct the building on
it, the land of the business measures approximately 280 sq meters cost P840,
000.00, which per square meter cost P3, 000.00 based on the price mandated in
the City of Koronadal.
Vehicle
To operate the business it needs to have vehicle to deliver the products to
its customers. The cost of the vehicle of the business is P800, 000.00 with a
useful life of 10 years.
Utilities
These are the required supplies in the operation that helps the business to
produce goods and services to customers. The basis of the cost of the utilities is
from the survey conducted by the researcher through the different funeral
services here in the City of Koronadal.
Table 5.5 Utilities used to supply the operation
Monthly cost Annual Cost
Electricity P10,000.00 P120,000.00
Water PP2,000.00 P24,000.00
Total P22,000.00 P144,000.00
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The table shows the utilities needed by the business to operate, electricity
for the lighting and machineries and water used in the business for the
maintenance of cleanliness and services for operation.
Table 5.6 Gasoline and Oil Expense
Monthly cost Annual Cost
Fuel P2,500.00 P 30,000.00
The table 5.6 shows gasoline and oil expenses needed the operation; this
will be used by the different vehicles of the business to deliver the products or
services to the customers.
Waste Disposal
The waste disposal method that the business these are body fluid
preparation room solid waste use of Formaldehyde disposal.
Body Fluid Disposal
Another environmental area of concern in a funeral home or transfer
centre is the preparation room. The embalming process includes the aspiration or
removal of blood and body fluids and replacement with a chemical solution.
Currently blood and body fluids are discharged directly into the sanitary sewer
system. The by-products of the embalming process are thoroughly diluted with
water in discharge basins before entering the sewer system. To ensure these by-
products do not find their way into the public water supply, vacuum breakers are
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placed on the main water line leading into the funeral home and on all hydro
aspirators.
Preparation Room Solid Waste
Anything that might have come in contact with un-embalmed remains or
body fluids is considered potentially contaminated. In government regulations it is
referred to as bio-hazardous solid waste. It may include disposable gowns,
gloves, sheets, clothing, sponges, paper towels and any other solid waste item.
All bio-hazardous waste items are placed in an appropriately marked container or
bag and secured before disposal. Laundry items should be placed in a cloth bag
tied and the bag and contents laundered.
Use of Formaldehyde
Formaldehyde is a colorless, flammable gas with a strong pungent odor. It
is sold to funeral homes as a water-based solution containing approximately 35
to 50 percent formaldehyde by weight. Depending on the circumstances it may
be further diluted by the embalmer before use.
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Figure 5.4 Plant layout
The figure below shows the schematic arrangements of parts or areas of
the business enterprise.
Figure 5.5 Location of the business
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Location
The plant location is beside Bombo Radyo Broadcast Center, Km. 4,
General Santos Drive, Koronadal City, South Cotabato. The researcher wants to
build the business the location is near to Allah Valley Hospital for one reason.
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Chapter VI
Financial Aspects
This chapter discusses the financial aspects of the study, in order for a
business plan to understand the money to it needed to start. To determine
whether the future industry will remain profitable thorough the existence of
competitors and unfavorable economic condition, the researchers projected a
five year financial statement.
This chapter includes the source of funds, balance sheet, income
statement, cost of goods sold and cost of sales.
Financial Requirements
Table 6.1 Start-up Funds Needed.
Particulars Budget Allocation
Land P840,000.00
Building P1,118,180.00
Vehicle P800,000.00
Equipment, Furniture and Fixture P1,911,072.00
Working Capital P122,748.00
Total Start- up Funds Needed P4,700,000.00
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Sources of Financing
The capital needed will be provided by the owner. The owner will
provide the capital to finance the total start-up funds needed through their assets
from their personal properties.
Financial Assumptions:
1. Selling price will increase by eight percent (8%) annually.
2. Assume that the mortality rate is 5.01% for five years.
3. Cost of sales will increase by five percent (5%) annually.
4. Taxes and licenses will increase by five percent (5%) annually.
5. Salaries and wages will increase by five percent (5%) annually.
6. Repairs and Maintenance will increase by five percent (5%)
annually.
7. Office Supplies expense will increase by five percent (5%) annually.
8. Marketing Expense will increase by five percent (5%) annually.
9. Withdrawal of the owner is 20% of the net income.
10. The monthly mortality rates were based form The 2010 Philippines
Health Statistics of Department of Health-National Epidemiology
Center.
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Projected Financial Statements
"Heaven Knows Funeral Home" has its five year projection of its income
statement, statement of the changes in owner’s equity, cash flows and balance
sheet.
 Projected Income Statement
 Projected Statement of Changes in Owner’s Equity
 Projected Statement of Cash Flow
 Projected Statement of Financial Positions
Projected Income Statement
HEAVEN KNOWS FUNERAL HOME

PROJECTED INCOME STATEMENT
For the Year Ended, Year 1 to Year 5
Schedule YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Revenue 1,2 37,258,872.00 40,239,581.76 43,458,748.30 46,935,448.16 50,690,284.02
Cost of Sales 3,4 21,795,518.00 22,885,293.90 24,029,558.60 25,231,036.52 26,492,588.35
GROSS PROFIT 15,463,354.00 17,354,287.86 19,429,189.71 21,704,411.64 24,197,695.67
Operating Expenses
Pre-opening expenses
Salaries expense 5 1,653,600.00 1,736,280.00 1,823,094.00 1,914,248.70 2,009,961.14
SSS Contribution 6 92,019.60 96,620.58 101,451.61 106,524.19 111,850.40
Philhealth Contribution 7 16,206.00 17,016.30 17,867.12 18,760.47 19,698.49
Pag-ibig Contribution 8 14,400.00 14,400.00 14,400.00 14,400.00 14,400.00
13th Month Pay 9 137,800.00 144,690.00 151,924.50 159,520.73 167,496.76
Gasoline and oil 10 30,000.00 31,500.00 33,075.00 34,728.75 36,465.19
Utilities expense 11 144,000.00 151,200.00 158,760.00 166,698.00 175,032.90
Office Supplies 12 11,670.00 12,253.50 12,866.18 13,509.48 14,184.96
Repairs and Maintenance 13 30,000.00 31,500.00 33,075.00 34,728.75 36,465.19
Registration and licenses 14 9,000.00 8,375.00 8,768.75 9,182.19 9,616.30
Training Expense 15 44,000.00 44,000.00 44,000.00 44,000.00 44,000.00
Marketing Expense 16 328,200.00 344,610.00 361,840.50 379,932.53 398,929.15
Depreciation expense 17 463,687.20 463,687.20 463,687.20 462,487.20 462,487.20
Total Operating Expenses 2,974,582.80 3,096,132.58 3,224,809.85 3,358,720.98 3,500,587.67
Income Before Income Tax 12,488,771.20 14,258,155.28 16,204,379.86 18,345,690.66 20,697,108.00

Income Tax Expense 18 3,961,406.78 4,527,609.69 5,150,401.55 5,835,621.01 6,588,074.56
Net Income After Tax 8,527,364.42 9,730,545.59 11,053,978.30 12,510,069.65 14,109,033.44
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JMJ Marist Brothers
List of Schedules-Income Statement
Schedule 1. Coffin Rent Revenue
Steel Metal Wood
Month
Demand Sales Demand Sales Demand Sales
January 30.45 243,584.00 38.37 498,784.00 91.34 365,376.00
February 26.30 210,368.00 33.14 430,768.00 78.89 315,552.00
March 27.68 221,440.00 34.88 453,440.00 83.04 332,160.00
April 31.14 249,120.00 39.24 510,120.00 93.42 373,680.00
May 31.14 249,120.00 39.24 510,120.00 93.42 373,680.00
June 26.99 215,904.00 34.01 442,104.00 80.96 323,856.00
July 29.06 232,512.00 36.00 468,000.00 86.00 344,000.00
August 31.49 251,888.00 39.00 507,000.00 93.00 372,000.00
September 29.41 235,280.00 36.00 468,000.00 87.00 348,000.00
October 28.37 226,976.00 35.00 455,000.00 84.00 336,000.00
November 26.00 208,000.00 34.44 447,772.00 81.00 324,000.00
December 28.00 224,000.00 36.62 476,112.00 86.00 344,000.00
Total 2,768,192.00 5,667,220.00 4,152,304.00
Schedule 2. Other Funeral Services Revenue

Steel Metal Wood
Month
Demand Sales Demand Sales Demand Sales
January 30.45 270,987.20 38.37 341,475.20 91.34 9,238,200.00
February 26.30 234,034.40 33.14 294,910.40 78.89 812,961.60
March 27.68 246,352.00 34.88 310,432.00 83.04 702,103.20
April 31.14 277,146.00 39.24 349,236.00 93.42 739,056.00
May 31.14 277,146.00 39.24 349,236.00 93.42 831,438.00
June 26.99 240,193.20 34.01 302,671.20 80.96 831,438.00
July 29.06 258,669.60 36.00 320,400.00 86.00 720,579.60
August 31.49 280,225.40 39.00 347,100.00 93.00 765,400.00
September 29.41 261,749.00 36.00 320,400.00 87.00 827,700.00
October 28.37 252,510.80 35.00 311,500.00 84.00 774,300.00
November 26.00 231,400.00 34.44 306,551.60 81.00 747,600.00
December 28.00 249,200.00 36.62 325,953.60 86.00 720,900.00
Total 3,079,613.60 3,879,866.00 17,711,676.40
Schedule 3. Coffin for Rent Cost of Sales

Steel Metal
Demand Unit Cost Cost Demand Unit Cost Cost
January 30.45 8,500.00 258,808.00 38.37 4,500.00 172,656.00
February 26.30 8,500.00 223,516.00 33.14 4,500.00 149,112.00
March 27.68 8,500.00 235,280.00 34.88 4,500.00 156,960.00
April 31.14 8,500.00 264,690.00 39.24 4,500.00 176,580.00
May 31.14 8,500.00 264,690.00 39.24 4,500.00 176,580.00
June 26.99 8,500.00 229,398.00 34.01 4,500.00 153,036.00
July 29.06 8,500.00 247,044.00 36.00 4,500.00 162,000.00
August 31.49 8,500.00 267,631.00 39.00 4,500.00 175,500.00
September 29.41 8,500.00 249,985.00 36.00 4,500.00 162,000.00
October 28.37 8,500.00 241,162.00 35.00 4,500.00 157,500.00
November 26.00 8,500.00 221,000.00 34.44 4,500.00 154,998.00
December 28.00 8,500.00 238,000.00 36.62 4,500.00 164,808.00
Total 2,941,204.00 1,961,730.00
Schedule 4. Other Funeral Services Cost of Sales

Steel Metal
Demand Unit Cost Cost Demand Unit Cost Cost
January 30.45 7,000.00 213,136.00 38.37 7,000.00 268,576.00
February 26.30 7,000.00 184,072.00 33.14 7,000.00 231,952.00
March 27.68 7,000.00 193,760.00 34.88 7,000.00 244,160.00
April 31.14 7,000.00 217,980.00 39.24 7,000.00 274,680.00
May 31.14 7,000.00 217,980.00 39.24 7,000.00 274,680.00
June 26.99 7,000.00 188,916.00 34.01 7,000.00 238,056.00
July 29.06 7,000.00 203,448.00 36.00 7,000.00 252,000.00
August 31.49 7,000.00 220,402.00 39.00 7,000.00 273,000.00
September 29.41 7,000.00 205,870.00 36.00 7,000.00 252,000.00
October 28.37 7,000.00 198,604.00 35.00 7,000.00 245,000.00
November 26.00 7,000.00 182,000.00 34.44 7,000.00 241,108.00
December 28.00 7,000.00 196,000.00 36.62 7,000.00 256,368.00
Total 2,422,168.00 3,051,580.00
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JMJ Marist Brothers
Schedule 5. Salaries Expense
MONTHLY
Job Position Year 1 Year 2 Year 3 Year 4 Year 5
Manager 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13
Office Staff 85,800.00 90,090.00 94,594.50 99,324.23 104,290.44
Chapel Staff (2) 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
License Embalmer 180,000.00 189,000.00 198,450.00 208,372.50 218,791.13
Driver Attendant (2) 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Utility (2) 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Funeral Home Decorator (2) 171,600.00 180,180.00 189,189.00 198,648.45 208,580.87
Make-up artist 144,000.00 151,200.00 158,760.00 166,698.00 175,032.90
Bookkeeper 120,000.00 126,000.00 132,300.00 138,915.00 145,860.75
Cashier 85,800.00 90,090.00 94,594.50 99,324.23 104,290.44
HR/ Administrator staff 85,800.00 90,090.00 94,594.50 99,324.23 104,290.44
Marketing Staff 85,800.00 90,090.00 94,594.50 99,324.23 104,290.44
Total 1,653,600.00 1,736,280.00 1,823,094.00 1,914,248.70 2,009,961.14
Schedule 6. SSS Contribution

Manager 12,720.00 13,356.00 14,023.80 14,724.99 15,461.24
Office Staff 5,936.40 6,233.22 6,544.88 6,872.13 7,215.73
Chapel Staff (2) 5,936.40 6,233.22 6,544.88 6,872.13 7,215.73
Utility (2) 5,936.40 6,233.22 6,544.88 6,872.13 7,215.73
Make-up artist 10,608.00 11,138.40 11,695.32 12,280.09 12,894.09
Bookkeeper 8,480.40 8,904.42 9,349.64 9,817.12 10,307.98
Cashier 5,936.40 6,233.22 6,544.88 6,872.13 7,215.73
Marketing Staff 5,936.40 6,233.22 6,544.88 6,872.13 7,215.73
Total 92,019.60 96,620.58 101,451.61 106,524.19 111,850.40
Schedule 7. Philhealth Contribution

Manager 2,250.00 2,362.50 2,480.63 2,604.66 2,734.89
Office Staff 1,050.00 1,102.50 1,157.63 1,215.51 1,276.28
Chapel Staff (2) 1,050.00 1,102.50 1,157.63 1,215.51 1,276.28
Utility (2) 1,050.00 1,102.50 1,157.63 1,215.51 1,276.28
Make-up artist 1,800.00 1,890.00 1,984.50 2,083.73 2,187.91
Bookkeeper 1,506.00 1,581.30 1,660.37 1,743.38 1,830.55
Cashier 1,050.00 1,102.50 1,157.63 1,215.51 1,276.28
Marketing Staff 1,050.00 1,102.50 1,157.63 1,215.51 1,276.28
Total 16,206.00 17,016.30 17,867.12 18,760.47 19,698.49
Schedule 8. Pag-ibig Contribution

Manager 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Office Staff 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Chapel Staff (2) 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Utility (2) 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Make-up artist 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Bookkeeper 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Cashier 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Marketing Staff 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Total 14,400.00 14,400.00 14,400.00 14,400.00 14,400.00
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JMJ Marist Brothers
Schedule 9. 13th Month Pay
Manager 15,000.00 15,750.00 16,537.50 17,364.38 18,232.59
Office Staff 7,150.00 7,507.50 7,882.88 8,277.02 8,690.87
Chapel Staff (2) 14,300.00 15,015.00 15,765.75 16,554.04 17,381.74
Utility (2) 14,300.00 15,015.00 15,765.75 16,554.04 17,381.74
Make-up artist 12,000.00 12,600.00 13,230.00 13,891.50 14,586.08
Bookkeeper 10,000.00 10,500.00 11,025.00 11,576.25 12,155.06
Cashier 7,150.00 7,507.50 7,882.88 8,277.02 8,690.87
Marketing Staff 7,150.00 7,507.50 7,882.88 8,277.02 8,690.87
Total 137,800.00 144,690.00 151,924.50 159,520.73 167,496.76
Schedule 10. Depreciation Expense

Fixed Assets Year 1 Year 2 Year 3 Year 4 Year 5
Equipment, Furniture and Fixture 271,869.20 271,869.20 271,869.20 270,669.20 270,669.20
Vehicles 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00
Building 111,818.00 111,818.00 111,818.00 111,818.00 111,818.00
TOTAL DEPRECIATION 463,687.20 463,687.20 463,687.20 462,487.20 462,487.20
Schedule 11. Gasoline and Oil Expense

Year 1 Year 2 Year 3 Year 4 Year 5
Fuel 30,000.00 31,500.00 33,075.00 34,728.75 36,465.19
Schedule 12. Utilities Expense

Electricity 120,000.00 126,000.00 132,300.00 138,915.00 145,860.75
Water 24,000.00 25,200.00 26,460.00 27,783.00 29,172.15
Total 144,000.00 151,200.00 158,760.00 166,698.00 175,032.90
Schedule 13. Office Supplies

Office Supplies 11,670.00 12,253.50 12,866.18 13,509.48 14,184.96
Schedule 14. Repairs and Maintenance

Repairs and Maintenance 30,000.00 31,500.00 33,075.00 34,728.75 36,465.19
Schedule 15. Registration and Licenses

DTI Registration 500.00 - - - -
BIR Registration 1,000.00 500.00 500.00 500.00 500.00
Mayor's Permit 5,000.00 5,250.00 5,512.50 5,788.13 6,077.53
Environmental Fee 1,000.00 1,050.00 1,102.50 1,157.63 1,215.51
Barangay Clearance 500.00 525.00 551.25 578.81 607.75
Bureau of Fire Protection 500.00 525.00 551.25 578.81 607.75
Sanitary Fee 500.00 525.00 551.25 578.81 607.75
Total 9,000.00 8,375.00 8,768.75 9,182.19 9,616.30
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JMJ Marist Brothers
Schedule 16. Training Expense

Training Expense 44,000.00 44,000.00 44,000.00 44,000.00 44,000.00
Schedule 17. Marketing Expense

Radio Ads 22,500.00 23,625.00 24,806.25 26,046.56 27,348.89
Tarpaulin 1,500.00 1,575.00 1,653.75 1,736.44 1,823.26
Leaflets 400.00 420.00 441.00 463.05 486.20
Commission 303,800 318,990.00 334,939.50 351,686.48 369,270.80
Total 328,200.00 344,610.00 361,840.50 379,932.53 398,929.15
Schedule 18. Income Tax Expense

Taxable Income 12,488,771.20 14,258,155.28 16,204,379.86 18,345,690.66 20,697,108.00
First 500,000 125,000.00 125,000.00 125,000.00 125,000.00 125,000.00

Excess of 500,000 (32%) 3,836,406.78 4,402,609.69 5,025,401.55 5,710,621.01 6,463,074.56
Tax due 3,961,406.78 4,527,609.69 5,150,401.55 5,835,621.01 6,588,074.56
Projected Statement of Changes in Owner's Equity

PROJECTED STATEMENT OF CHANGES IN OWNER'S EQUITY

Capital, beginning 4,700,000.00 11,521,891.53 19,306,328.01 28,149,510.65 38,157,566.37
Add: Net Income 8,527,364.42 9,730,545.59 11,053,978.30 12,510,069.65 14,109,033.44
Total 13,227,364.42 21,252,437.12 30,360,306.31 40,659,580.30 52,266,599.80
Less: Drawing 1,705,472.88 1,946,109.12 2,210,795.66 2,502,013.93 2,821,806.69
Capital, ending 11,521,891.53 19,306,328.01 28,149,510.65 38,157,566.37 49,444,793.12
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JMJ Marist Brothers
Projected Statement of Cash Flow
PROJECTED STATEMENT OF CASH FLOW

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Cash Flow from Operating Activities
Net Income After Tax 8,527,364.42 9,730,545.59 11,053,978.30 12,510,069.65 14,109,033.44
Non-cash adjustments
Depreciation Expense 463,687.20 463,687.20 463,687.20 462,487.20 462,487.20
Add/Less: Increase/Decrease in Working Capital
Increase in Liabilities 4,084,032.38 571,614.19 628,473.71 691,185.39 758,717.78
Net Cash Provided by/Used in
Operating Activities 13,075,084.00 10,765,846.98 12,146,139.21 13,663,742.24 15,330,238.42
Cash Flow from Investing Activities

Acquisition of :
Plant, Property and Equipment (4,669,252.00)

Investing Activities (4,669,252.00)
Cash Flow from Financing Activities

Investment by Owner 4,700,000.00
Drawings (1,705,472.88) (1,946,109.12) (2,210,795.66) (2,502,013.93) (2,821,806.69)
Financing Activities 2,994,527.12 (1,946,109.12) (2,210,795.66) (2,502,013.93) (2,821,806.69)
Current Operation 11,400,359.12 8,819,737.86 9,935,343.55 11,161,728.31 12,508,431.73
Cash, beginning balance - 11,400,359.12 20,220,096.97 30,155,440.53 41,317,168.84
Cash, ending balance 11,400,359.12 20,220,096.97 30,155,440.53 41,317,168.84 53,825,600.57
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JMJ Marist Brothers
Projected Statement of Financial Position

PROJECTED STATEMENT OF FINANCIAL POSITION

ASSETS
Current Assets
Cash 11,400,359.12 20,220,096.97 30,155,440.53 41,317,168.84 53,825,600.57
Plant, Property and Equipment

Land 840,000.00 840,000.00 840,000.00 840,000.00 840,000.00
Building 1,118,180.00 1,118,180.00 1,118,180.00 1,118,180.00 1,118,180.00
Less: Accumulated Depreciation 111,818.00 223,636.00 335,454.00 447,272.00 559,090.00
Building, net 1,006,362.00 894,544.00 782,726.00 670,908.00 559,090.00
Vehicle 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00
Less: Accumulated Depreciation 80,000.00 160,000.00 240,000.00 320,000.00 400,000.00
Vehicle, net 720,000.00 640,000.00 560,000.00 480,000.00 400,000.00
Equipment, Furniture and Fixture 1,911,072.00 1,911,072.00 1,911,072.00 1,911,072.00 1,911,072.00
Less: Accumulated Depreciation 271,869.20 543,738.40 815,607.60 1,086,276.80 1,356,946.00
Equipment, Furniture and Fixture, net 1,639,202.80 1,367,333.60 1,095,464.40 824,795.20 554,126.00
Total Plant, Property and Equipment 4,205,564.80 3,741,877.60 3,278,190.40 2,815,703.20 2,353,216.00
TOTAL ASSETS 15,605,923.92 23,961,974.57 33,433,630.93 44,132,872.04 56,178,816.57
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JMJ Marist Brothers
Liquidity Ratio
LIQUIDITY RATIOS
Current Assets 12,008,413.13 21,317,397.41 31,765,617.48 43,464,525.20 56,535,808.23
1) CURRENT RATIO = =
Current Liabilities 3,961,406.78 4,527,609.69 5,150,401.55 5,835,621.01 6,588,074.56
= 3.03 4.71 6.17 7.45 8.58
= 2.81:1 4.42:1 5.89:1 7.22:1 8.45:1
This shows the ability of the business to pay its short-term liabilities as they fall due. From its first to fifth year of operation has enough
current assets to pay its current liabilities. For every one peso liability, the business can pay P3.03 of assets for Year 1, 4.71 for Year
2, 6.17 for Year 3, 7.45 for Year 4 and 8.58 for Year 5. Hence, the business is highly liquid as shown in its yearly computed ratio.
Solvency Ratio
SOLVENCY RATIOS
DEBT to Total Liabilities 3,961,406.78 4,527,609.69 5,150,401.55 5,835,621.01 6,588,074.56
1) = =
EQUITY RATIO Owners' Equity 11,521,891.53 19,306,328.01 28,149,510.65 38,157,566.37 49,444,793.12
= 0.3438 0.2345 0.1830 0.1529 0.1332
= 0.34 0.23 0.18 0.15 0.13

This shows that the business did not rely much on the creditors. It indicates that the business is not into any financial risks.
Thus, the business it has the capacity to pay its debt out of its total equity. Creditors provide as capital.

2) Owners' Equity 11,521,891.53 19,306,328.01 28,149,510.65 38,157,566.37 49,444,793.12
EQUITY RATIO = =
Total Assets 15,605,923.92 23,961,974.57 33,433,630.93 44,132,872.04 56,178,816.57
= 0.7383 0.8057 0.8420 0.8646 0.8801
= 0.74 0.81 0.84 0.86 0.88
The equity ratio of the business with 0.74 for Year 1, 0.81 for Year 2, 0.84 for Year 3, 0.86 for Year 4, and 0.88 for Year 5, it indicates
that the business will be able to finance its assets requirements without resorting to borrowing from the creditors or other financial
institutions

DEBT TO Total Liabilities 3,961,406.78 4,527,609.69 5,150,401.55 5,835,621.01 6,588,074.56
3) = =
TOTAL ASSETS Total Assets 15,605,923.92 23,961,974.57 33,433,630.93 44,132,872.04 56,178,816.57
= 0.25384 0.18895 0.15405 0.13223 0.11727
= 0.25 0.19 0.15 0.13 0.12
This shows that the business did not rely much on the creditors. it indicates that the business is not into any financial risks. Thus, the
business is in the best position because it has the capacity to pay its debts out of its total assets. The business relies as high as to
the creditors out of its total assets.
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JMJ Marist Brothers
Profitability Ratio
PROFITABILITY RATIOS
NET INCOME Net Income 8,527,364.42 9,730,545.59 11,053,978.30 12,510,069.65 14,109,033.44

1) = =
MARGIN Net Sales 37,258,872.00 40,239,581.76 43,458,748.30 46,935,448.16 50,690,284.02
= 0.22887 0.24182 0.25436 0.26654 0.27834
= 0.23 0.24 0.25 0.27 0.28
This measure the amount of income provided by the average sales. The net income margin of the business with 0.23 for Year 1, 0.24 for Year
2, 0.25 for year 3, 0.27 for Year 4, and 0.28 for Year 5, indicates that the business is performing well when it comes to generating income
since there is an increasing trend for the net income margin.
GROSS INCOME Gross Profit 15,463,354.00 17,354,287.86 19,429,189.71 21,704,411.64 24,197,695.67

2) = =
MARGIN Net Sales 37,258,872.00 40,239,581.76 43,458,748.30 46,935,448.16 50,690,284.02
= 0.41502 0.43127 0.44707 0.46243 0.47736
= 0.42 0.43 0.45 0.46 0.48
The gross income margin of the business with 0.42 for its first year of operation, 0.43 for Year 2, 0.45 for Year 3, 0.46 for Year 4, and 0.48 for
Year 5, it indicates that the business has a good standing when it comes to providing gross profit out of its sales since there is an increasing
trend for the gross income margin.
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JMJ Marist Brothers
Efficiency Ratio
EFFICIENCY RATIOS
TOTAL ASSET Net Sales 37,258,872.00 40,239,581.76 43,458,748.30 46,935,448.16 50,690,284.02

1) = =
TURNOVER Total Assets 15,605,923.92 23,961,974.57 33,433,630.93 44,132,872.04 56,178,816.57
= 2.387482612 1.679309926 1.29985129 1.063503144 0.902302453
= 239% 168% 130% 106% 90%
This shows how the total assets of the business are being utilized efficiently. Heaven Knows Funeral Home in its first year of
operation gives as much as 239% sales out of the total assets invested in the business. In its second year of operation, it
decreased to 168% and in the following years.

2)
EQUITY Sales 37,258,872.00 40,239,581.76 43,458,748.30 46,935,448.16 50,690,284.02
= =
TURNOVER Total Equity 11,521,891.53 19,306,328.01 28,149,510.65 38,157,566.37 49,444,793.12
= 3.233746117 2.084269041 1.543854486 1.23004302 1.025189526
= 323% 208% 154% 123% 103%
This shows how the total equity are being utilized efficiently. Heaven Knows Funeral Home in its first year of operation gives as
much as 323% sales out of the total investment of the business. In Its second year it decreased to 208% and also in the
following years.
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JMJ Marist Brothers
Financial Ratios and Analysis
Financial ratios determine the financial strengths and weaknesses of a
business enterprise. it also helps to analyze whether it can pay or settle its debts.
Moreover, it measures the business payback period and if the proposed business
has a high return on investment, which will help the owner decide whether to
continue or cease the business. Thus, analysis of financial statements is an
integral part of the business to come up with a good decision owner. To know if
there is really a potential for this kind of venture, is further explained with the
computed financial ratios showing the following:
1. Tests of Liquidity. Refers to the company's ability to take care of its short term
current liabilities as they fall due.
2. Tests of Efficiency. Shows how the assets and owner's equity are being
utilized efficiently in the operation of the business.
3. Tests of Profitability. Shows the profit earned given a certain economic and
business condition.
4. Tests of Solvency. Refers to the company's ability to pay all its debts, whether
such liabilities are current or non- current, which involves long term horizon.
Page | 74
JMJ Marist Brothers
Return of Investment
Table 6.2 Return of Investment
RETURN ON INVESTMENT
Average Net Income 11,186,198.28
Total Investment Amount 4,700,000.00
ROI 238.00%
The return on investment value of 238.00% shows that out of the total
investment amount of P4, 700,000.00 can it generate 238.00% return at the end
of the investment's life.
Payback Period
Table 6.3 Payback Period
Cumulative Payback
Cash Inflow Balance Period
Year 0 (4,700,000.00) (4,700,000.00)
Year 1 11,400,359.12 6,700,359.12 0.41
Payback
Period 0.39 years
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JMJ Marist Brothers
For this kind of business, it will take 0.39 year to recover the investment of
P4, 700,000.00 invested in this business.
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JMJ Marist Brothers
Chapter VII
Socio-Economic
This study includes its benefits. The proposed study aims to help our
localities especially here in Koronadal City. Nowadays, it is important that
Filipinos must create products that would largely contribute to the socio-
economic development of the country. In this study, the researchers consider the
whole part of the business especially the social impact in the community. This
business gives impact to the community by reducing their expenditures
especially when it comes to burying their loved one.
This business contributes to the development of economy as it provides
employment and generates income. This business is expected to give great
contribution to the government in the form of taxes. The tax payment from the
business would help the localities as well as the economy in its future project
especially to the people that will benefit. This business is a great opportunity for
employed people to have jobs and it will give them opportunity to have another
source of income. This would help the people to improve their buying capacity.
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JMJ Marist Brothers
Chapter VIII
Findings and Recommendations
This chapter presents the summary of the findings of the feasibility study,
the conclusions and the suggestions recommended by the researchers.
Marketing Feasibility
The business is engage in providing a coffin for rent; an added funeral
services. The business will answers the need of every family from the five
barangay’s of the City of Koronadal, namely, Paraiso, Namnama, Caloocan,
Avancena, Conception. It also includes other rural areas that can be found in the
city. Based on the survey conducted, out of 100 percent, 84 percent wants to
avail of the service of this kind of business. The demand distribution of each
coffin for rent such as, metal is 346, for the steel is 436, and for the wood is
1038.
The production of three existing major competitors is not enough to supply
the demand of the consumers. Hence, the demand and supply analysis is
advantageous on the part of the proponents to supply the demand of the
consumers.
Organizational and Management Aspects
. This form of ownership single proprietorship is chosen because the
management and the operation of business are very simple. Below is the
organizational structure of the business. Primarily, there will be sixteen
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JMJ Marist Brothers
employees who will perform the duties and responsibilities associated with the
business. The positions to be filled up in the proposed business are the Manager,
Office staff, Chapel Staff, License Embalmer, Driver Attendant, Make-up Artist,
HR/Administrator Staff, Utility, and Funeral Home Decorator, Bookkeeper,
Cashier, and Marketing Staff. They will be paid according to their positions with
the consideration of the mandated wage rates and benefits.
Technical and Operational Aspect
The Heaven Knows Funeral Home will operate to produce quality products
and services. Primarily, the land which will be approximately 280 square meters
will be allocated for the buildings and structures. The important inputs are land
for the buildings equipments, products and supplies.
Financial Aspects
The capital requirements needed for putting up a funeral services will be
Php 4,700,000 which will be used for the purchase of the 280 square meters of
land at Php 840,000, for the construction of the buildings at Php1,118,180, for
the vehicle at Php 800,000, for the purchase of equipment, furniture and fixture
for Php1,911,072.
The business can generate 238.00% return of investment out of the total
investment amount Php 4,700,000. Based on its payback period, it will take 0.39
years to recover all the investment of the business.
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JMJ Marist Brothers
Socio-Economic Aspect
The proposed coffin for rent; an added funeral services will contribute
greatly to the urban areas where it will be established. it will This business gives
when it comes to bury their loved ones.
Conclusion
Based on the survey and data gathered by the researcher:
1. We conclude that out of 100%, 84% willing to avail this kind of
services.
2. We conclude that the supply of funeral services from the three
major competitors is 1,115.
3. We conclude that the total demand of funeral services is 1,820.
4. We conclude that the three major funeral services have insufficient
supply of products that the market demanded.
5. We conclude that our return of investment is 238.00%.
6. We conclude that, it will take 0.39 year to recover the investment of
P4, 700,000.00 invested in this business.
Recommendation
Wakes and burials are costly. The casket alone can cost the family
of the dead thousands of pesos. The expenses for funerals don't stop
there because there a lot to prepare and pay for. As stated in the previous
chapters, not all the families in this area can't afford to purchase a casket
for their dead loved ones. However, the researchers presented another
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JMJ Marist Brothers
option that is truly economically wise. Based on the data presented, the
researchers confidently recommend that this study be put into reality with
all the facts and numbers laid down in black and white. The researchers
are certain that this study is feasible and doable in the area.
Page | 81

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JMJ Marist Brothers

Notre Dame of Marbel University

This chapter contains the background of the study, rationale, objectives,

scope, and limitation of the study.

Background of the Study

why people must be prepared on what these uncertainties may bring.

Death is handled based on the culture, beliefs and norms of people

population review. Based on the survey of World Bank organization, Philippines

undertaking a coffin rental business after he was unable to provide a decent

families (Escandor Jr., 2000).

A rental or casket-for-rent is a good cost-saving option if you want to have

a traditional casket at a viewing or funeral but don't want to purchase a casket. A

only once (Rental Casket, 2014).

Rationale of the Study

provide a dignified wake for their decrease ones.

Funeral establishment in the City of Koronadal do not offer casket for

services. Moreover, this kind of business must be established in the City of

Objectives of the Study

Generally, the study aims to determine the feasibility of establishing a funeral

1. Present the funeral services industry.

2. Discuss the feasibility of the proposed study in the following

3. Present the findings of the proposed study in the following

Scope and Limitation of the Study

Scope of the Study

Avancena, Caloocan, Conception, Namnama, and Paraiso. The respondents

of the province of South Cotabato.

This study is exploratory and descriptive in nature. It is exploratory

discover the preference knowledge of residence in the City of Koronadal if this

its different aspects such as marketing aspect, organizational aspect, operational

aspect, financial aspect, and socio-economic.

A survey questionnaire contained a set of questions designed to yield specific

information to meet a particular need of research information about the study.

many people. The households in these five barangays were chosen as

respondents of the study.

The study was conducted in the City of Koronadal specifically in barangay

Avancena, Caloocan, Conception, Namnama, and Paraiso. These five

barangays were chosen by purposive sampling method of the study.

The respondents in this research were the different households of

aforementioned barangays. Furthermore, the respondents belonged to Catholic

and non-Catholic religions except Islam.

document for number of households surveyed.

Table 1.1 Distribution of the sample size of respondents by barangays.

Number of Sample Size per

Barangay Households Computation Barangay

Avancena, 829 367/5.45 67

Caloocan 880 367/5.13 71

Conception 956 367/7.73 78

Namnama 706 367/6.40 58

Paraiso 1147 367/3.94 93

Total 4518 4518/1+4518(.05)2 367

information to the respondents. The survey was comprised of seven questions,

were distributed through incidental sampling.

This study used percentage in order to know how many respondents

describe the marketing, operational, organizational and financial aspect of this

A funeral industry is a business associated with funerals including funeral

storage and care of the body of a deceased person for burial.

Funeral services cover all undertakings, embalming, burial site preparation

designed for encasement and burial of human remains; usually constructed of

designed to accommodate different wishes and budgets. The most common

types of services offered are funeral homes, traditional funeral service,

immediate burial, direct cremation, cremation with services, donation, memorial

for rent. Materials used in casket making vary greatly.