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Summary of Conclusion for Feasibility Study of Snack

Stand
July 15, 2010, 1:11 am

Marketing Aspects

1.    The Snack stand will be very much positive in offering a lot of services to satisfy customers
needs, accept suggestion and criticisms to improve our business
2.    Snack stand will utilize with honesty and credibility thru our products and services.
3.    Snack stand will be always “open-minded” to those other competitors and will seek only the
best.

Technical Aspect

1.    The final location of the business will be at the Common Terminal, Balanga City, Bataan.
2.    Raw materials will be obtained during its freshness and nearness to the source which is
Elizabeth Supermarket in Balanga City itself.
3.    The management will provide cleanliness of the stall, especially the food for satisfaction of
customers.

Management Aspect

1.    The best organizational structure to adopt in the same manner communication will be
facilitated from the top to bottom and from the bottom to the top.
2.    The democratic atmosphere will always prevail in the business to ensure hormones
interpersonal relationship between management and personnel.
3.    The Snack stand will develop the service activity to satisfy the need of the customer.

Socio-Economic Aspect

1.    The Snack stand will be very much responsible in promoting environmental, clean air act
and proper waste disposal.
2.    Taxes assured for the city government.
3.    The partner’s will make sure of the observance and God-fearing to all of them.

Financial Aspect
1.    The amount of fifty thousand pesos (Php50,000.00) is substantially enough to put up the
proposed project Snack stand.
2.    Based on the projections as depicted by the financial statements, the proposed project is a
kind of lucrative undertaking.
3.    The proponent of the project will be responsible in producing the capital requirement.

Prepared by:  Arde Reyes

Tags: feasibility study snack stand, financial aspect, management aspect, marketing aspect, socio
economic aspect, technical aspect
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Management Aspect Feasibility Study for Snack Stand

June 15, 2010, 8:32 am

The central idea of management is to make every action or decision help achieve a careful
chosen goal.

The word management is also used to mean the group of persons called executives who perform
management activities.

Objectives

1.    To keep the subordinates be alert to what is expected to them.

2.    To know the duties and responsibilities of each member and personnel.
3.    To know different strategies to be able to achieve the company’s goal.

Description of Activities

1.    DTI Permit Application

The business name of GF Snack Stand should be register with the Department of Trade and
Industry.  It would take only four days to five days before the permit is receive.  If there as no
other name of its type.

Three (3) different name should be apply so when one is approved, so they can use other applied
business name (see appendix)

2.    Rental Space

The project business will be located at Bataan terminal at 2nd floor Ibayo, Balanga City, Bataan. 
The application will only about three to four weeks before it is approved.

3.    Mayor’s Permit

The Mayor’s Permit application will acquire the submission of the following:

a.    SSS Clearance Permit

b.    Sanitary Permit
c.    DTI
4.    TAN (Tax Account Number)

The project business will be registered at the Bureau of Internal Revenue District Office No.
(1020) located at Capitol drive, San Jose, Balanga City.  The following forms should be
accomplished with necessary attachments.

BIR FORM No.  Attachment Required, Mayor’s Permit and DTI Permit

5.    Buying of machineries and equipment

Involves the acquisition of the necessary machinery and equipment in the food snack as
mentioned in technical aspect.

6.    Promotion

Includes advertising and personal selling partnership in a variety of promotional activities to

inform customer about products and service and to encourage them to buy.

7.    Start of Operation

After securing all the necessary permits and other needed materials.  The said will be now ready
to operate.

C. Organizational Structure

Through GF Snack Stand is just a simple business, the organization structure will have a simple
flow.  It is not as complicated as big ventures.

Over – All manager / Cashier

Cook 1, Cook 2
Utility Man 1, Utility Man 2

D. Personnel Structure

The GF Snack Stand is required to have the members of personnel and service crew.

Staff – Over all Manager – 1

Cashier – 1
Cook – 2
Utility Man – 2
E. Duties and Responsibities

1.    Over-all Manager / Cashier

-    Supervise the overall operation of the business
-    Computer the total amount of the purchased item
-    Assist the customers

2.    Cook 1
-    Prepares the necessary ingredients
-    Cooks the items/products

3.    Cook 2
-    Prepares the necessary ingredients
-    Cooks the item/products

4.    Utility Man 1

-    In charge of cleaning the workplace
-    Delivers items within the vicinity
-    In charge of buying raw materials from suppliers
-    In charge of the inventory

5.    Utility Man 2

-    In charge of cleaning the workplace
-    Delivers items within the vicinity
-    In charge of buying raw materials from the suppliers
-    In charge of the inventory

Excerpt from Management Project by Arde R. Reyes

Tags: business requirement, management feasibility, organization feasibility, snack stand

management
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Business Feasibility Study – Snack Stand

June 7, 2010, 2:08 am

A. Name and Address of the Business

The GF Snack Stand (Good Food Snack Stand) is proposed to be located at the 2nd floor of the
Bataan Common Terminal, Ibayo, Balanga City, Bataan.

B.    Nature  Business

The GF Snack Stand offers a wide variety of snacks and beverages.  It caters the need of the
persons in transit and others who are waiting for their ride home in the said common terminal.  It
also provide hip and soothing music to those who are weary from work and school.

The menu mainly consists of chicken, ham, ham and egg and hotdog sandwiches, fishballs,
kikiam, squidballs, french fries and juices such as gulaman and pineapple juice.

The said snack stand is open Mondays through Sundays from 7:00 AM to 7:00 PM.

Management Aspect

1.    What are the roles and responsibilities of each personnel?

2.    What are the different strategies were going to use in order to cope up with the competition?
3.    How can we cope up with the competition?

Financial Aspect

1.    How much will be the total cost of the project?

2.    How much is the contribution of each member?
3.    How much profit were going to earn this kind of project?

Socio-Economic Aspect

1.    How can the business contribute to the reduction of unemployment?

2.    How can the business contribute to the community?
3.    How can the business contribute to the economy?

Excerpt from Management Project by Arde R. Reyes

Tags: business feasibility study, Snack Stand Feasibility study

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Sugar Mill Feasibility Study

March 2, 2009, 8:04 am

Name of the Enterprise

This proposed sugar mill shall be called as Sweet Sugar Incorporated, obviously sugar is sweet
and sweet is sugar. That’s why it shall be called as Sweet Sugar Incorporated.

Sweet Sugar Incorporated shall have its own plant located in Sitio Maguindong, Luakan,
Dinalupihan, Bataan.

The site was chosen because its strategic location, where the supplies of public and private
services are adequate and labor supply and raw materials are readily available.
Sources of Raw Materials

The plant shall have its own sugarcane plantation near the mill and the plantation shall be
adequate in land area that will produce the needed raw material for sugar.

Availability of Transportation

The plant site is strategically located in Sitio Maguindong, Luakan, Dinalupihan, Bataan where
transportation is not a problem. The plant is readily accessible to the workers. The finished sugar
can be readily delivered to the market.

Project Long Range Objective

The Sweet Sugar Incorporated shall stick to its obligation and responsibility to its consumers of
providing and producing the highest quality of sugar. No toxic materials shall be used or if there
is, it should be properly disposed. It also respond to the needs of the barangay where it is located
in order to help its progress.

The Sweet Sugar Incorporated shall be the number one product and supplier of high-grade sugar
throughout Luzon and its neighboring provinces, and if expansion is needed, it shall be done
without overlooking its primary objectives.

Mode of Financing

Financing shall come from the shares of the stockholders/owners of the Sweet Sugar
Incorporated. If ever the shares can’t cover up the expenses of constructing the plant before its
operation, the Sweet Sugar Incorporated shall apply for loans which will give the maximum
output for the plant.

When business is already in operation, its liabilities and loans shall be paid from the sugar
revenue

Market Study

As Bataan is situated geographically near the center of the Philippines, the finished product can
be easily transported to the neighboring provinces in the country. Manila, the leading distribution
center in the Philippines will be recipient of greater bulk of the product.

Analysis of Market Demand and Supply

Sugar is one of the primary commodities of the people, thus it is very important to have big
supply that will cover up the big demand for sugar. The establishment of this sugar mill will
greatly help our fellow Filipinos and most of all, our economy. This sugar mill will increase the
sugar supply in the market, thus lessening our importation of sugar which is more expensive in
cost.
Market and Marketing Strategy

Vigorous effort should be expanded to secure a market before a commitment is made to build a
sugar mill if it would be most desirable to have the financial participation of one or more major
users who can guarantee the purchase of substantial portion for the procedure production. During
the past years, several overtures were made in this direction which revealed the opportunities
existing.

Scale and Volume

The receiving of raw materials supply condition market potential and engineering should be
considered. It would have production line which represent 769,434 tons per unit day. The output
of the plant will depend on the production conditions.

Sugar Marketing Operation

The structure of general framework of market situation is already been said of the manner in
which selling, shipping, financing and all other commercial aspect of marketing are out inside
the general framework. These function rarely been described except by and for the specialist
concerned with them. They are the essential link, however, providing the customers with that
they want and the sugar industry with their income.

The successful selling of the product ultimately determine the prosperity of every one in industry
if it is not sold successfully all the efforts of the farmers, millers and readiness with their
employees and the most of business which supply and service them will suffer. The final
customers are their most important millions of housewives buying sweets or soft drinks not only
4 lbs. of sugar and tin of golden syrup but also the tin of jam.

Market Distribution

Pricing

Pricing should follow the established market prices and practices which in turn are determined
by the forces of demand and supply, however because of uncertainty of sugar during the start up
period, some prices concessions should be made in order to break into market. A suggestion that
is to 20% reduction from established market prices be affected on the first year output.

Consumer Surveys

Everyone is using sugar everyday, but assumed of sugar feeds are centrally as possible within the
area of cane fields, as this will facilitate the transportation of cane with less rolling stock and
other fixed charges for their department. Moreover, easy cane supply, so necessary for a
economical grinding, will secure to the factory.

The direction of the prevailing wind and its accessibility to the factory and dwelling should be
ascertained to avoid dust, ashes, smoke and odor of refuse going in wrong direction.
Healthy surroundings are paramount importance to the employees. Standing and deterioration
water must not be allowed near the factory.

Technical Study

Services Offered:

The proposed plant site at Sitio Maguindong, Luakan, Dinalupihan, Bataan offers a plentiful
supplies of water and power. The site offers adequate supply of water for growing sugarcane,
and power for the production of sugar. It also offers adequate supply of laborers, which is
considered more important than all the other factors, especially when skilled and unskilled
laborers are required.

Labor

Skills required

The company will hire Filipino larorers in sugar cane manufacturing. Laborers near the company
site and more preferable to the employees to insure promptness and can do overtime work when
needed Another important reason is that people from nearest place can easily transport with their
convenience since the company is small, the working force will be required from town itself or
its vicinity. The company on the other hand will give assurance to the workers like a good
working condition, facilities for a conductive maintenance of their health incentives and many
other benefits required by the labor code, plus benefits given by the company itself.

The Project Site

Sitio Maguindong, Luakan, Dinalupihan, Bataan was chosen the best region of all sugar
plantation in the Philippines due to its abundant supply of labor will not be difficult to achieve as
most barrio folk are quite hardworking and industrious. Another reason is because of availability
of raw materials and have favorable conditions. The plant would be erected near the national
highway which will enable the transportation of finished product to the opposite provinces of
course, sugar central will increase their yearly supply of sugar production thus helping the sugar
industry.

The determination where sugar cane factory is to be located is purely an agricultural one. So far,
it is referred t the tract of land which has to be adequate for growing sugar cane fr a period of
years and the location where climate condition and rainfall are much that successful crops to be
expected.

As Bataan is situated geographically near the center of the Philippines, the finished product can
be easily transported to the neighboring provinces.

Waste Disposal
The various waste materials produced by industries maybe classified generally as solids, gaseous
or liquid. Solid waste are directly related to a loud pollution gas liquid to air and water pollution,
although all of them have combined and interrelated effects on pollution.

Methods of Waste Disposal

1. Eliminate of source. The first approach to a waste disposal problem requires a careful attention
of the source of pollutants.
2. Recovery of waste products. Before deciding how to discard waste materials, the engineer
should always think for recycle, reuse or for sale.
3. Regulate how to fit dilution
4. Divert waste to other points
5. Waste treatment. – A very expensive process the recent encountered by the major cities of the
world due to smog problem and the question as due to how to dispose gaseous waste,
electrostatic precipitators, aggrometrators, washers and many other kind of equipment have been
used to remove atmospheric contaminants.

Disposal of solid waste materials on land is always a complicated problem, incineration and
burying are possible solution and the best is by recycling.

A judicious plant design eliminates a potential hazardous operations should be separated from
various plant facilities and sufficient protection is made, possible sources of fire by eliminating
all the unnecessary ignition sources such as flame, spark or heated material, welding, smoking,
static electricity and the spontaneous combustion of waste materials.

Chemicals can cause dangerous burns and accidents are bound to occur rotating sections of
equipments should be amply protected to prevent accidents.

Management Study

For Pre-operating Period:

During the pre-operating period, the stockholders are responsible to deal with some government
and private agencies to secure the necessary document and deal in financing institution for
financial needs of the project. These persons are the one to negotiate for the constructor. The
supplier of the materials and by the hired construction firm and the supervision will be integrated
with the said contract. Consultant shall be hired also to ensure the safety of the plant and to
supervise the installation of the equipment.

For Operating Period:

During the operating period, the stockholders handled the key position in the company. The
business is organized and incorporate with their respective holdings:

Board of Directors
- Chairman of the Board
- Member
- Member
- Member
- Maintenance and Material Director
- Company Accountant
- Sales Director
- Production Director

The company sees to it that hired accountant and supervision directors are all licensed by the
professional Regulation Commission (PRC) in their respective professions. All these persons
should have at least an experience in their respective jobs.

The company accountant is responsible for the books and the preparation of the company book
of accounts. He also prepares the payroll and he examines the financial status of the company.

The sales director will assists the selling and finding markets for the products.

The production director is responsible for the production in order to insure for good productivity
and minimize production or manufacturing costs.

The maintenance and materials director is responsible for the safety programs and maintenance
of the plant. He should set the guidelines and train workers about safety and accidents and be
able to continue the flow of the product even machine breakdown occurs, which are hindrance to
the company’s re-productivity programs.

Financial Study

Major Assumption

An industry like sugar mill requires a big capital. The stockholders shall provide the needed
capital for the establishment of the whole business. Funds shall be given for the purchases of the
necessary equipments and necessary materials for the construction of the building and for the
purchase of land.

In case that there is no sufficient fund, the company shall apply for loan in the bank which gives
the lowest interest. During operation, the company shall pay its obligation out its revenues.

Equipment cost less than P40,000,000.00. Building construction (payment for the labors
included) costs more than P20,000,000.00. Land (for the plant site and sugar cane plantation
costs P20,000,000.00. The stockholders shall produce a budget of not less than P80,000,000.00.

Socio-economic Study

Taxes and Restricting Law

Bataan offers the lowest tax rate for industries like sugar production, and the best of Bataan is,
they offer, provide government subsidy and help to the industries located in its territory.

Provincial and town legislation are also important. The sweet sugar laws are more stringent in
Bataan.

Sweet Sugar Incorporated will help boost the economic status of Dinalupihan, Bataan because it
will provide a great number of jobs for the unemployed folks in the area, thus, giving them more
opportunities in life.

Sweet Sugar Incorporated shall pay all its tax obligations on time.

This is a partial study of Engr. Eric Lanosa.

Tags: Feasibility Study, sugar mill

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Some Things to Consider in Establishing a Food Business

February 20, 2009, 5:28 am

Due to economic crisis, it is hard to decide which business should be started.  In order to
minimize the risk, a thorough study must be undertaken.

Food business is very rewarding since man can give up almost everything except food. Men have
to eat in order to live. But of course, you will also to be considered the location, security, market,
management, facility, and financial to certain that the business could be carried out profitably. 
Examples of food business are restaurant, canteen, fast food, bars, coffee shop and many more.

Location

Location is one of the important things to consider when planning any business. Choose the best
place to establish a food business. The location should be accessible to your prospective
customer.  As much as possible, it should be located near colleges, municipal, church, hospital,
public and private offices and residences.

Security

Safeness of your business should also be considered. The business is secure if it is located
around several establishments.

Market

Know the population of your place in order to know if there are enough people who will
patronize your food business. Also, observe your competitors to be able to assume the demands.
Food offers must be affordable to the people who live on your community.
Facilities

Find out the facilities to be used in your business such as the tables, chairs, cooking utensils, etc.

Management

Identify the personnel to be hired.

Financial

Estimate the total capital requirements.  Forecast the monthly income and expenses of your food
business in order to know the potential profits. Consider also the sources of financing.

Waste Management

Proper disposal of waste should be implemented. What will be the waste disposal method to be
adopted.

Tags: food business

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Example / Sample of a Feasibility Study

September 9, 2008, 12:21 am

Feasibility Study of Establishing Cindy’s Fast Food Branch Along Plaza of Balanga,
Bataan

1. General Objectives

1.1. Description of the Business Project

The proposed business will need a two-storey building in a 2,000 square-meter lot with a parking
space at the rear. The customer will drive in the left entrance greeted by the water-sprinkled
Indian trees partly shielding the establishment from the fumes coming from the busy street.
Embraced by the multi-colored lights, the trees will set the cosmopolitan setting to a rustic
atmosphere. The building will be constructed to hide the stockroom complementing the
architectural masterpiece. The smoothly cemented exit passing through the well-manicured lawn
will draw sights of satisfaction from the customers.

The state-of-the-art tables, chairs and utensils will enhance the customers feeling that they are in
a five-star hotel. Very affordable, the food will enthrall every customer to come and savor the
food over the widely spaced tables on the immaculately marbled floor. The electronically
flushing system of the restrooms will motivate the customers to force their friends and relatives
to frequent this new Cindy’s Branch at the heart of the Balanga.
1.2. Project Time Table

All minor details considered, the project will start serving the five thousand targeted daily
customers within five months. The contractors will complete the fence and the framework of the
building in the first month. They will finish the walls and the floors in the second month. They
will install the electrical and the air conditioning units in the third month. After the first and
second layer coating, they will complete the final painting in the fourth month and finally they
will landscape and plant balled-trees in the fifth month. As the project will be in progress, the
company will busy the facilities to be used.

1.3. Management of the Business

With three managers alternately scheduled on the eight hour duty to man the 95crew in the 24
hour service, the business will surely satisfy the customers, propelling profit to soar.

The personnel will make a customer feel that he is the only one served amidst the queuing
multitude. The high wage given by the company and, likewise, the humane treatment of the
superiors will inspire the crew to render machine-precise service.

2. Product and Market Aspects

2.1 Market Outcome

A variety of expensive fireworks commence the business to attract the children, students,
parents, and professionals. This opening blast will have been advertised a month before. The
initial big crowd from the different districts of the province will keep growing to actualize the
management’s vision that this Cindy Branch will be the most profitable among the food chains in
the City.

2.2 Market and Selling Price

The customers can order from a variety of choices in the counter staffed with beautiful and
handsome ever-smiling crew. The waiters will serve the orders in the well-crafted, smoke free
dining areas with both oriental and western motifs to fit their number and their tastes. These
areas will enhance customer privacy as the customers enjoy eating while talking about the
gossips of the town, or as they engage in a highly intellectual calisthenics about a hot political
issue. The area will also conduce lovers to cement their relationship with their soul-penetrating
interlocked gazes that only lovers could fathom, as they savor their food.

3. Technical Aspect

3.1 Location Factor

At the center of Balanga Plaza, this food center will surely draw customers from the cross-
section of society. The following factors will back-up the company’s foresight:
3.1.1 Topography

The 2,000 square-meter lot does not need labeling because the area is already flat and it is
located in high location. No matter how strong the typhoon will be, the rains will not flood the
area. The customers will not be drawn away from enjoying the services of Cindys.

3.1.2 Cost of Land

The fertile business venture will cheapen the current P20,000 per square meter piece of land. The
forty five million peso worth of property will double after only three years of operation.

3.1.3 Security

The place will be safe. Secretly installed cameras will monitor every move to ensure the security
of the customers. Four security guards simultaneously assigned to the area will guarantee the
safety of the clients. This will be backed up by policemen assigned at the outpost nearby.

3.2 Size and Layout of the Building

To maximize the 40 x 50 meter land area, the engineers will erect the 20 x 30 meter proposed
two storey building, leaving five meters at both sides and 18 meters fronting the street. Only two
meters will be left at the back of the building. This will ventilate the establishment.

3.3 Equipment

The Bataan Builders will construct the building. This construction company will use modern
building equipment like a cement mixer, caterpillar, automatic digging drill, and other state of
the art construction materials.

4. Project Cost

4.1 The Land and the Building

This project will cost about P 45,000,000.00 which is roughly broken into the following:

Cost of 2,000 meter lot – P 40,000,000.00

Cost of 2 storey building – P 4,000,000.00
Accessories and Equipments – P 1,000,000.00

Total Cost – P 45,000,000.00

The 45 million pesos worth of land is the biggest of the capital investment but it is worth it
because unlike the other expenses, the land value will appreciate through the years. The contract
with the Bataan Builders for the proposed two-storey building is P 4,000,000. This includes
materials and labor. With the five-month paying scheme, Cindy will pay P 800,000 every month
until the last month. The food center will need P 1,000,000 for the imported accessories like
tables, chairs and other needs.

4.2 Franchise

The food center will pay the current P 1,000,000 Cindy franchise.

4.3 Sources of Financing

The proprietor will put in P 5,000,000. The remaining P 40,000,000 will be borrowed from the
bank.

5. Business Operation

5.1 Revenues

With 50 thousand monthly net income target from about five thousand daily customers, the
proposed branch projects the following net income by month and years:

First month – P 1,500,000.00

First year – P 18,000,000.00
Second year – P 36,000,000.00
Third year – P 54,000,000.00
Fourth year – P 72,000,000.00

After four years of operation, this venture will have gained P 11,000,000 as shown in the
following computations:

Net income in four years – P 72,000,000.00

Minus the sum of investments – P 61,000,000.00
Difference – P 11,000,000.00

Loaned money from the bank – P 42,500,000.00

Interest of loaned money – P 17,000,000.00
Franchise – P 1,000,000.00
Maintenance – P 500,000.00
Total – P 61,000,000.00

5.2 Accessories and Equipments

Being of high quality, the accessories will still be usable after four years. However, P 500,000
pesos is allotted for maintenance and replacements of damaged property.

Summary
The figures above prove how financially rewarding this business venture. Because food is a
necessity, a venture like this guarantees 99% success. This is especially so if the location is the
Plaza like Cindys Plaza.

* The feasibility study is a result of the proposed Establishment Cindy’s Fast Food.