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The document presents a feasibility study for 'Lily Pad', a business focused on producing handcrafted hot pads made from sustainably harvested water lily stems. It outlines the project's market, technical, management, financial feasibility, and socio-economic impact, emphasizing sustainability and community support. The study aims to promote eco-friendly practices while providing economic opportunities for local artisans and farmers.
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0% found this document useful (0 votes)
4 views64 pages

MANUs CRIPT

The document presents a feasibility study for 'Lily Pad', a business focused on producing handcrafted hot pads made from sustainably harvested water lily stems. It outlines the project's market, technical, management, financial feasibility, and socio-economic impact, emphasizing sustainability and community support. The study aims to promote eco-friendly practices while providing economic opportunities for local artisans and farmers.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Republic of the Philippines

NUEVA ECIJA UNIVERSITY OF SCIENCE AND


College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

ACKNOWLEDGMENTS

The authors of the study, "Feasibility Study on the Production of Water Lily Hot Pads: An

Eco-Friendly Solution", would like to express our profound gratitude and admiration to the

person who gave us the drive and motivation to do our study.

Above all, praises and thanks to our Almighty God, for His showers of blessings and who

has given us a courage, wisdom, resolve, and direction during all of the difficult times that we

faced to accomplish this study.

This feasibility study would not be feasible without the steadfast support and guidance we

received from our adviser, Mrs. Mercy Torres, who generously offers their knowledge with us

while assisting us in performing the necessary tasks during the study.

The researcher will be forever grateful to each of you. We would like to thank Mr. Manuel

Manuel for their thoughts and advice on improving the technicalities of this work. Also, express

appreciation to our parents for their unconditional understanding and for sharing their wisdom

that inspires us to push beyond our limits, as well as for providing financial and moral support.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

DEDICATION

This Feasibility study is lovingly dedicated to the Almighty God, our foremost inspiration

in pursuing this study towards the attainment of our personal as well as our goal as a team. Thank

you for the guidance, strength, power of mind, protection and skills and for giving us a healthy

life. All of these, we offer to you.

To our professors, for their support and guidance in the success of this study. To our

respective parents who have been our source of inspiration and gave us strength when we

thought of giving up, without their moral and financial support this would not be possible. To our

beloved families and friends who have extended their support in a number of ways.

And lastly, to the future researchers who will be benefited from this study.
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

TABLE OF CONTENTS

ACKNOWLEDGEMENT

DEDICATION

TABLE OF CONTENTS

CHAPTER I SUMMARY OF THE PROJECT

1.1 Name of the firm

1.1.1 Logo Description

1.2 Location

1.3 Product Description

1.4. Project Summary

1.4.1 Market Feasibility

1.4.2 Technical Feasibility

1.4.3 Management l Feasibility

1.4.4 Financial Feasibility

1.4.5 Socio-Economic Impact

CHAPTER II INRODUCTION/BAKGROUND OF THE STUDY

2.1 Brief Background of the Study


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2.2 Operational Definition of terms

CAHPTER III MARKET STUDY

3.1 Market Description

3.2 Demand

3.3 Supply

3.4 Demand and Supply Analysis

3.5 Market share

3.6 Marketing Strategies

3.6.1 Pricing

3.6.2 Promotions/Advertising

CHAPTER IV TECHNICAL STUDY

4.1 Product/Services

4.2 Process

4.3 Machines and Equipment

4.4 Furniture and Fixture

4.5 Supplies

4.5.1 Miscellaneous Supplies


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4.5.2 Office Supplies

4.6 Utilities

4.7 Manpower Requirements

4.8 Plant Location

4.8 Building and Facilities

4.10 Plant size and Layout

4.11 Waste Disposal

CHAPTER V MANAGEMENT STUDY

5.1 Form of Business Organization

5.2 Capitalization

5.3 Manpower Requirements

5.4 Compensation

5.5 Organizational Structure

5.6 Legal Requirements

CHAPTER VI FINANCIAL STUDY

6.1 Total Project Cost

6.2 Sources of Funds


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6.3 Assumptions Underlying Projection

6.4 Projected cash flow statement

6.5 Projected Income statement

6.6 Projected Balance sheet

CHAPTER VII FINANCIAL ANALYSIS

7.1 Return on Investment

7.2 Payback Period

CHAPTER VIII SOCIO-ECONOMIC IMPACT

BIBLIOGRAPHY

APPENDICES
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CHAPTER 1

I. SUMMARY OF THE PROJECT

1.1 Name of the Firm:

Lily Pad

A brand name is most likely the most important component of a successful business brand

because it is used to present firms and is better with a simpler name rather than frequently

lengthy names. The name of the firm, “Lily Pads Shop” is a charming and memorable business

name that evokes images of nature, calmness, and creativity. The idea for Lily Pad emerged from

a fascination with the water lily’s unique beauty and its ability to thrive in diverse environments.

We, as a group were inspired by the plant’s intricate patterns, delicate textures, and natural

strength.

Lily Pad, a handcrafted hot pads that combine the natural elegance of water lilies with the

practical need for heat protection. Each hot pad is meticulously woven from sustainably

harvested water lily stems, showcasing the unique textures and patterns of these remarkable

plants. The result is not only a beautiful and functional kitchen essential, but also a testament to

the power of nature and the importance of sustainable practices.

1.1.1 Logo description

The image shows a logo for a company called “Lily Pad Shop”. The logo features two

circular woven pads made from water lily stem, one with a handle, against a white background.

The logo is visually appealing, with a simple yet elegant design. The use of natural materials like
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
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water lily stem adds a touch of warmth and sophistication. The font choice is modern and clean,

complementing the overall aesthetic. The simplicity of the design emphasizes the beauty and

elegance of the water lily, reflecting the brand’s commitment to creating beautiful and functional

products.

The elipse shaped In the center image of the logo represents the cyclical nature of life and

growth, while the two woven pads made of water lily symbolizes purity, beauty, and resilience.

These attributes resonate with the brand’s values of sustainability and craftsmanship. The logo’s

minimalist design creates a sense of sophistication and refinement, inviting customers to

appreciate the elegance and quality of Lily Pad products.

The tagline "Elegance in Every Detail" is subtly incorporated around the circular image,

reinforcing the brand’s commitment to creating products that are both beautiful and functional.

The tagline also hints at the attention to detail and craftsmanship that goes into each Lily Pads

product.
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1.2 Location:

Location The arranged business will be place in the public market of Zaragoza, Nueva

Ecija. The proponents picked this site since the Philippines is increasingly embracing sustainable

practices, and Nueva Ecija is no exception. The Lily Pad products will also be available in online

selling platforms such as Shopee, Tiktok and Lazada and will also be posted on other social

media platform such as Facebook and Instagram. Online platforms are powerful marketing tools

that can significantly enhance a business's reach, accessibility, and customer engagement.

According to Dolan, Conduit, Fahy, and Goodman (2017), online marketing increased in content

and changed the way individuals and organizations interact. To realize and understand the

potential benefits of online marketing, small retail business leaders need to ensure their processes

align with technological advancements. Customers appreciate the convenience of shopping

online, where they can browse, compare, and purchase products or services from anywhere and

at any time (Dolan, et.al, 2017). This convenience encourages more frequent purchases and

increases overall customer satisfaction.

Zaragoza could be a hub for eco-conscious consumers who appreciate Lily Pads

commitment to sustainability. And ading an e-commerce component to a business location like

the public market in Zaragoza, Nueva Ecija, could significantly enhance reach and convenience

for customers.

1.3 Brief Description of the Product

Lilly pads are handcrafted kitchen essentials that bring the elegance of nature into your

home. Each hot pad is meticulously woven from sustainably harvested water lily stems,
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showcasing the unique textures and patterns of these remarkable plants. The result is a

captivating fusion of natural beauty and practical utility.

Lily pads are not only beautiful and functional but also a testament to the power of nature

and the importance of sustainable practices. By using water lily stems, a renewable resource, we

celebrate the beauty and resilience of the natural world while minimizing our environmental

impact.

These hot pads add a touch of sophistication and sustainability to your kitchen, making

them a perfect gift for any occasion.

1.4 PROJECT SUMMARY

1.4.1 MARKET FEASIBILITY

The proponent discovered a public market, a business that also offers any type of product

that we require and desire in our daily lives, and it operates in the target market area. Our

proposed project would sell a handcrafted hot pads that combine the natural elegance of water

lilies with the practical need for heat protection, and the store would be visible due to its location

within the public market of Zaragoza. The Lily Pad products will also be available in online

selling platforms such as Shopee, Tiktok and Lazada and will also be posted on other social

media platform such as Facebook and Instagram.

1.4.2 TECHNICAL FEASIBILITY

Due to its simplicity, manufacturing our product does not necessitate a lot of tools or labor.

It increases the productivity of sole-proprietorship by delegating the task of planning and


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establishing the business. When it comes to the raw materials, we can get Water lily stems from

our suppliers Tarlac Public Market, La Paz Public Market, Pangasinan Public Market and

Cabanatuan Public Market.

Lily Pads, our finished product, will be sold in Zaragoza Public Market. Every day from

9:00 a.m.to 5:00 p.m., we will be selling our Lily Pads in Zaragoza Public Market. And the

location of our production in Sitio Putot, Zaragoza Nueva Ecija.

1.4.3 MANAGEMENT FEASIBILITY

The organizational structure for research is a partnership as it is owned, operated, and

controlled by seven separate parties. We all make equal financial, talent, ability, and expertise

contributions to the operation of the company. We made the decision to split the revenues and the

funds we raised for our project business evenly. In two weeks, the intended business should be

operational. Included are the procurement of materials, the establishment of the marketplace, and

the manufacturing of the products. Also, the company's legal document.

1.4.4 FINANCIAL FEASIBILITY

The company’s capital of 453,595 would be reduced by the product’s value of 31,667

materials, space rental, labor, and other operating expenses are included in this estimated cost.

The potential revenue for the subsequent years is nearly 10%, while the anticipated capital

revenue for the first month is 2%. It may also be possible to increase revenue if demand has

increased.

1.4.5 SOCIO-ECONOMIC IMPACT


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Lily Pads fosters a positive socio-economic impact by promoting sustainable livelihoods

for local farmers and artisans who harvest water lily stems. The company’s commitment to fair

trade practices and ethical sourcing ensures that these individuals benefit from the business’s

success. By using renewable resources and minimizing waste, Lily Pads contributes to

environmental conservation and promotes a healthier ecosystem. The company’s focus on local

communities strengthens their economic opportunities and empowers them to participate in a

sustainable business model. Out youth and mothers as target customers for Lily Pads can be

highly effective because these groups have distinct needs and buying behaviors that align with

many consumer products. It will establish a diverse yet complementary customer base,

maximizing brand reach and allowing the company to cater to both trendy, individual-focused

needs and family-oriented, trust-driven values.

Thus, Lily Pads’ commitment to social responsibility creates a positive ripple effect,

benefiting both the environment and the communities it serves.


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

CHAPTER 2

2.1 BRIEF BACKGROUND OF THE STUDY

The business owner finds out the negative effects that Water lily (Nymphaea) can cause

within the environment, one of which is when there is excess growth of these plants it becomes

dangerous because excess growth will cover the surface, causing a reduce in light penetration

into the body of water. However, its unique fibrous structure and renewable nature make it an

ideal raw material for eco-friendly crafts, offering both economic and environmental benefits.

Turning water lilies into handcrafted items has gained popularity in recent years as it

supports sustainable livelihoods, especially in rural areas, while helping control this invasive

species.

Studies have shown that utilizing water hyacinth for crafts contributes to biodiversity

conservation, waste management, and poverty alleviation (Kurniati et al., 2020). This natural

fiber can be woven into a variety of products, including baskets, mats, bags, and furniture,

adding a unique aesthetic and sustainable edge to the craft market. According to Kumar and

Gupta (2016), water lilies, like water hyacinths, possess fibrous structures that make them

suitable for crafting bio-materials. Utilizing these plants helps control their spread in water

ecosystems while providing a sustainable livelihood for local artisans. The realization becomes

the way of establishing Lily Pad Shop.


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
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Lily Pad Shop is a company that provides hot pads made from water lilies stem. Water

lily, often considered invasive in many waterways, can be repurposed into functional and eco-

friendly hot pads. This would not only give us a new product but also help to control the growth

of water lilies in local waterways. Creating handicrafts from water lily stems is an innovative

way to utilize natural resources, especially in regions where water lilies grow abundantly. The

fibrous texture and flexibility of water lily stems make them a unique material for crafting. The

process involves collecting the water lily stems, drying them, and then weaving or shaping them

into Hot pads. In order to use the water hyacinth as a raw material for handicraft making, its

water content must be lowered through a drying process. Currently, sun drying is the most

common practice for drying. After gathering the plants from water bodies, their stems are

subjected to sun drying for one week. Furthermore, using water lily stems in crafts supports eco-

friendly practices by promoting the use of natural, biodegradable resources.

Incorporating traditional crafting techniques with modern designs can make water lily

stem handicrafts highly marketable, especially in eco-conscious markets. As the demand for

sustainable products rises, products made from natural fibers like water lily stems can offer a

distinctive, eco-friendly alternative that attracts a wide range of customers.

2.2 OPERATIONAL DEFINITION OF TERMS

Cost-Benefit Analysis- refers to a financial assessment that compares the costs of production

against the expected benefits or revenues generated from selling the product.

Eco-friendly- refers to practices or products that are not harmful to the environment,

promoting sustainability and reducing ecological footprints.


Republic of the Philippines
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Hot Pads- refers to protective mats designed to shield surfaces from heat damage, typically

used in kitchens to place hot pots and pans.

Lily Pads- a handcrafted kitchen essentials that meticulously woven from sustainably

harvested water lily stems, showcasing the unique textures and patterns of these remarkable plants.

Water Lily- a type of aquatic plant that belongs to the family Nymphaeaceae. These plants

grow in still or slow-moving bodies of freshwater, like ponds and lakes, and are known for their

broad, round, floating leaves and beautiful, often fragrant flowers.


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Chapter 3

MARKET STUDY

The target customers of the proposed business are the residence of Zaragoza, Nueva

Ecija and the nearby individuals with the population as determined by the 2020 Census was

57,337.

3.1 Market Distribution

Business Name

Lily Pads is a business dedicated to creating eco-friendly products that resonate with

nature’s beauty. Our focus is on innovative solutions, such as water lily hot pads, which

transform natural resources into functional items for everyday use. Inspired by the resilience and

elegance of lily pads, we aim to promote sustainability and raise awareness about environmental

conservation. By using renewable materials, we strive to minimize our ecological footprint while

supporting local communities. At Lily Pads, we believe that small, conscious choices can lead to

a healthier planet for future generations.

Business Logo
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The logo features two round, woven coasters, with a black outline around the edges. The

coasters are made of natural materials, giving them a rustic and earthy feel. The logo also

includes the text "The Lily Pads" in a simple, modern font. Below the name is the tagline

"Elegance in Every Detail" and the establishment date "ESTD 2024". The overall design is clean,

minimalist, and elegant, reflecting the brand's focus on quality and craftsmanship.

Business Slogan

Business slogan is a short phrase that serves as a very brief representation company.

Lily Pads: Protect your surfaces, protect the planet. - "Protect your surfaces": This speaks

directly to the practical benefit of the product. Hot pads are designed to prevent damage to

surfaces from hot dishes or appliances. This is an immediate concern for many customers,

making this benefit relatable. "Protect the planet": This is the core message of the slogan,

emphasizing the eco-friendly aspect of the product. It appeals to customers who are conscious of

their environmental impact and want to make sustainable choices. "Protect your surfaces, protect

the planet": The parallel structure of this phrase creates a sense of balance. It suggests that

choosing Lily Pads is a win-win situation, benefiting both the customer and the environment.
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Cabanatuan City, Nueva Ecija

Business Location

Zaragoza, Nueva Ecija is intended business location is offers a combination of natural

resources, a supportive community, and a business-friendly environment that makes it an ideal

location for a business producing water lily hot pads. The business can leverage the local

resources, tap into the growing eco-conscious market, and build a strong brand identity rooted in

sustainability.

Distribution Channel

The Distribution Channel of Hot Pads ( Dikin ) typically involves the manufacturer selling to

wholesalers or distributors, who then supply the product to retailers both physical and online,

ultimately reaching the end consumers.


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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
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Wholesalers Distributors Consumers

3.2 Demand

This graph presents the results from the survey that shows the demand of hot pads in the market.

How often do you use hot pad in your kitchen?

100 responses

Graph 1: How often do you use hot pads in your kitchen?

Graph 1 represents the frequency of hot pad use in the kitchen based on 100 responses.

The chart reveals that the vast majority of respondents, 90%, use hot pads daily. A smaller

segment, 7%, use them frequently, while 3% use them sometimes. Notably, no respondents

indicated using hot pads rare.


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Graph 2: What features are most important to you in a hot pads?

The chart represents the importance of different features in hot pads according to

respondents. The most important feature, with 22.6% of the vote, is durability. Grip/nonslip

comes in second at 19.9%, followed closely by heat resistance at 18.9%. Design/style is

considered important by 21.9% of respondents, while size is the least important feature at 16.7%.

3.3 Supply

Name of Firms, Place of Business and Number of Customers Served Per Day

November 2024.

Name of Firm Address Name of Customers Served

Per Day
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C.T Ayson Wood Craft San Isidro, Zaragoza, 30 pcs

Manufacturing Nueva Ecija

3.4 Demand and Supply Analysis

Table 1: Project demand , Supply and market gap of hot pads

Year Project Demand Supply Market Gap

2024 15,000

2025 75,000 30,000

2026 60,000 30,000 30,000

2027 75,000 60,000 15,000

The table displays the projected demand, supply, and market gap for hot pads from 2023

to 2027. The market gap is calculated by subtracting the supply from the demand. The data

shows that the market gap is expected to be significant in 2023 and 2025, with a projected

demand exceeding supply by 30,000 units. The market gap is smaller in 2024 and 2027, with a

projected demand exceeding supply by 15,000 units. In 2026, the demand and supply are

projected to be equal, resulting in a market gap of 0.

3.5 Market Share


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Figure 1: Projected Average Market Shares of Lily Pads

Projected Market Shares

Figure 1 presents the projected market shares for water lily hot pads. The largest segment,

representing Projected Demand, accounts for 55% of the market share, indicating a significant

demand for water lily hot pads. Projected Supply, represented by the blue segment, makes up

35% of the market share, suggesting a substantial supply of the product. The Market Gap,

represented by the gray segment, accounts for only 10% of the market share, indicating a

relatively small difference between demand and supply.

35% 10%

55%

3.6 Marketing Strategies

Effective marketing strategies for water lily hot pads would focus on highlighting their

aesthetic appeal, functionality, and potential as unique gifts. Online marketplaces like Shopee

and TikTok Shop are ideal platforms for selling these hot pads, allowing sellers to reach a wide
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
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audience. Collaborations with home décor bloggers and influencers could also help increase

brand awareness and drive sales.

The proponents created the concept of a " Lily Pads Shop" to provide clients with "stylish

and functional" items to used as kitchenware to protect surfaces from heat. The Lily Pads Shop

sells a hot pads that offer a practical, stylish, and sustainable solution for your kitchen needs

while supporting local communities and fostering a connection to nature. The Lily Pads are made

up of water lily fibers with variety of designs and sizes from which they may pick useful

kitchenware.

The shop will be established at Zaragoza Public Market, which will elevate business chance of

profit. The proponents' target market is the residents at the said municipality.

3.6.1 Pricing

Items Product Cost Markup Selling Price

Lily Pad 52.78 42% 100

Table 2: Cost computation and markup per unit

Selling cost per unit 100.00/unit


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Table 2 shows the pricing per unit of the lily pads. Also, shows the 8% markup of the said

product.

3.6.2 Promotions/Advertising

In advertising our proposed business in the target market here are the initiatives :

1. Discount for bulk orders

Discount title Minimum Unit Discount Selling Price

Percentage

Bundle Set 3PCs 15% 90 each

Holiday Set 3PCs 15% 90 each

Reseller Package 20 PCs 20% 85 each

1. Discount for bulk orders

2. Discount flyers with discount offers in local community centers ,co- working spaces,

café, or home goods store.

3. Use Facebook ,Tiktok to showcase hot pads through engaging visuals and videos.

4. Collect customer reviews showcase testimonial to build trust.

5. Collaborate with local retailers , subscription boxes or corporate giving services.

3.7 Survey Questionnaire


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This survey questionnaire is used to determine how the proposed business will be

accepted by the target market. This also used to see if the location Zaragoza, Nueva Ecija

Supermarket, business type of handcraft, and the product itself will be preferred by the

consumers.

Figure 2: Preferred products derived from water lilies

Figure 2 shows the preferred products derived from water lilies. The largest proportion of

products are handicrafts (29%), followed by placemats and fruit baskets (27%), wallet and coin

banks (17%), slippers (11%), fabrics (9%), and containers (7%). This data suggests that

handicrafts are the most popular product made from water lilies, followed closely by placemats

and fruit baskets.

Figure 3: Preferred material for a hot pad


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Figure 3 represents the preferred materials for a hot pad. The most popular material is

fabric, with 36.9% of respondents preferring it. Cork is the second most popular material, with

21.4% of respondents choosing it. Silicone comes in third with 17.9%, followed by metal with

13.1%, and rubber with 10.7%. This data suggests that fabric is the most popular material for hot

pads, followed by cork.

Figure 4: Preferred color scheme for kitchen accessories like hot pad.

Figure 4 shows the preferred color scheme for kitchen accessories like hot pads. The most

popular color scheme is neutral tones, with 37% of respondents preferring it. Plain colors come

in second with 29%, followed by pastels with 20%, and bright colors with 14%. This data
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suggests that neutral tones are the most popular color scheme for kitchen accessories, followed

by plain colors.

Figure 1: Residents (target customer) who likely to have a water lily hot pad (dikin)

Figure 1 shows the likelihood of residents having a water lily hot pad. The majority of

residents (57%) are very likely to have a water lily hot pad. 33% of residents are somewhat

likely to have a water lily hot pad, and 10% are neutral. This data suggests that water lily hot

pads are popular among residents.

Figure 2: Willingness to buy a water lily hot pad


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Figure 2 shows the willingness of residents to buy a water lily hot pad. The majority of

residents (78%) are willing to buy a water lily hot pad. 22% of residents are maybe willing to

buy a water lily hot pad, and 0% of residents are not willing to buy a water lily hot pad. This data

suggests that water lily hot pads are a desirable product for residents.
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Cabanatuan City, Nueva Ecija

CHAPTER 4

IV TECHNICAL STUDY

4.1 Product/Services

Lily Pads Production's primary product is an eco-friendly, handcrafted hot pad made

from sustainably sourced water lily stems. These hot pads provide heat insulation while also

adding aesthetic value with their unique natural patterns. Each hot pad is expertly woven to

highlight the texture and durability of water lily stems. The manufacturing focuses on

sustainability, utility, and workmanship, appealing to customers who appreciate eco-friendly

items that are both functional and beautiful.


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4.2 Process

Materials Needed:

Water lily

Knife

Scissors

Needle

Paint Brush

Varnish

The production process involves several key steps to ensure the final product meets both quality

and environmental standards:

1. Raw Material Collection- Water lily stems are harvested from local ponds and irrigation

systems in Zaragoza, Nueva Ecija. The stems are carefully selected for durability and aesthetic

appeal.

2. Stem Preparation -The harvested water lily stems are dried to preserve their strength and

flexibility, which is essential for creating durable and long-lasting hot pads.

3. Weaving- Skilled artisans weave the dried stems into circular patterns, ensuring both aesthetic
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

appeal and functionality. This weaving process is precise and requires attention to detail to

achieve the desired design and texture.

4. Finishing- Once woven, the hot pads are inspected for quality. Any rough edges or

imperfections are corrected to ensure each pad is both functional and visually appealing.

5. Varnishing - A water lily painting involves applying a thin layer of varnish over the finish

product to protect it from damage and enhance its vibrancy and need to dry completely by

sunlight.

4.3 Equipment

Lily Pads' production relies on minimal machinery since it is mostly a handcrafted

operation. However, some basic tools and equipment are necessary:

Items Quantity Unit Cost Total

Knife 10pcs. P 55.00 P 550.00

Scissors 10pcs. P 30.00 P 300.00

Total: P 850.00

4.4 Furniture and Fixture

The production facility will include the following furniture and fixtures to support

operations:
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Item Quantity Unit Cost Total

Office Table 1pc. P 2,000.00 P 2,000.00

Warehouse Table 1pc. P 2,000.00 P 2,000.00

Chair 1pc. P 598.00 P 598.00

Monoblock Chairs 5pcs. P 300.00 P 1,500.00

Ceiling Fan 3pcs. P 1,300.00 P 3,900.00

Light Bulb 4pcs P 234.00 P 936.00

Display Racks 2pcs. P 1,950.00 P 3,900.00

Flower Vase 1pc. P 140.00 P 140.00

4.5 Office Supplies

4.5.1 Miscellaneous Supplies

These are the supplies needed to maintain the cleanliness of Lily Pad Shop.

Item Quantity Unit Cost Total

Broom and Dustpan 2pairs P 200.00 P 400.00

Moppler 1pc. P 99.00 P 99.00

Garbage Bag 10rolls P 49.00 P 499.00

Doormat Rug 1pc. P 52.00 P 52.00

Paper Bag 15packs P34.00 P 510.00

Trash Can 2pcs. P 105.00 P 210.00


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

4.5.2 Office Supplies

` These are the other supplies needed in the Lily Pad.

Item Quantity Unit Cost Total

Ballpen 1box P 148.00 P 148.00

Paper 5pads P 29.00 P 145.00

Calculator 2pcs. P 102.00 P 204.00

Lily Pad Equipment

These are the materials needed for production of Lily Hot Pad.

Item Quantity Unit Cost Total

Water Lily 1Sacks P 150 P 150

Varnish 3bttls. P 60.00 P 180.00

Paint Brush 1pcs. P 35.00 P 35.00

Needle 1pcs. P 10.00 P 10.00

4.6 Utilities

The business requires basic utilities to operate efficiently:

Utilities Monthly Annual

Water Bill P 150.00 P 1,800.00

Electricity Bill P 250.00 P 3,000.00

4.7 Manpower Requirement


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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Proposed Position / Salary

Position No. Monthly Annual

Laborer 2 P 12,000 P 144,000

Seller 1 P 6000 P 72,000

4.8 Plant Location

The production facility is located at the Zaragoza Public Market in Nueva Ecija. This

location was chosen for its proximity to the raw materials and its appeal to eco-conscious

consumers in the area. The plant’s location helps ensure easy access to resources and a visible

presence in the market.

4.8 Building and Facilities

The production site for Lily Pads is based in Zaragoza Public Market, Nueva Ecija. This

strategic location supports access to raw materials, primarily water lily stems, sourced from local

ponds. The building includes designated areas for weaving, drying, quality inspection,

packaging, and storage. The facility’s layout prioritizes workflow efficiency and reduces

movement, streamlining each step from raw material handling to the finished product. It is a

shared space within the market area to increase visibility and support easy customer access, with

secure storage and sustainable practices embedded in the workspace.

4.10 Plant size and Layout


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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

4.11 Waste Disposal

Lily Pads Production is committed to minimizing environmental impact. The company

will:

 Recycle leftover materials from the production process.

 Use biodegradable waste disposal methods to ensure any waste generated has minimal

effects on the environment.

 Waste can be classified as biodegradable or non-biodegradable. To encourage and

exercise the diligence attribute, the proposed business will closely adhere to the laws and

regulations established by the government. The Lily Pad shop will take great care when

disposing of the filthy and poisonous waste in their establishment. The company will

separate its waste into biodegradable and non-biodegradable materials. The

biodegradable materials can be recycled to make products, and some of the non-

biodegradable materials can be sold to junk shops to make money. The biodegradable

materials can be used as fertilizer.


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

CHAPTER 5

V. MANAGEMENT STUDY

5.1 Form of Business Organization

The Lily Pads Production is a Sole proprietorship. Sole proprietorship is an individual

who owns a business and has complete control and authority over it. It will be more productive

and efficient, giving the owner the best potential return. Individuals who are informed about

business and pleasant in the line of work are typically hired by the company. Good and

competitive personnel are made up of a combination of these characteristics. The business owner

is Ms. Rechele Rugayan.

Our Team:

Our mission at Lily Pads Shop is to provide eco-friendly, handcrafted water lily hot pads

that deliver both quality and affordability. Our experienced team is dedicated to creating

memorable customer experiences. We operate as a cohesive unit, focusing on high-quality

products and customer satisfaction. Our proactive approach fosters an environment that

prioritizes innovation in crafting souvenirs and attracting a loyal customer base.


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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

5.2 Capitalization

The initial investment for Lily Pads Production will total approximately ₱100,000 This

capital will be sourced from the owner and potential investors, covering costs for raw materials,

and initial marketing efforts to establish the brand in the marketplace.

5.3 Manpower Requirements

Human resources are essential for the success of Lily Pads Production. The business

will prioritize hiring skilled labor experienced in eco-friendly manufacturing practices.

To maximize efficiency, employees will be assigned roles based on their strengths and

expertise. This strategic allocation will enhance productivity, ensuring high-quality output and

supporting the overall mission of providing sustainable, eco-friendly products.

JOB TITLE JOB DESCRIPTION JOB SALARY

SPECIFICATION

Laborer Laborers at Lily Pads Human resources are P 12,000

Production support essential for the

the manufacturing success of Lily Pads

process by preparing Production. The

water lily stems, business will

maintaining the prioritize hiring

workspace, and skilled labor

assisting weavers and experienced in eco-


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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

artisans as needed. friendly

They are responsible manufacturing

for sourcing raw practices, placing

materials, ensuring emphasis on practical

quality control during skills and hands-on

processing, and experience rather

managing waste than formal education

responsibly to align backgrounds. To

with the company’s maximize efficiency,

eco-friendly values. employees will be

assigned roles based

on their strengths and

expertise. This

strategic allocation

will enhance

productivity, ensuring

high-quality output

and supporting the

overall mission of

providing sustainable,

eco-friendly products.

Seller The seller is For seller positions, a P 6,000

responsible for similar approach will


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

promoting and selling apply, with an

Lily Pads’ eco- emphasis on relevant

friendly hot pads. sales skills and

They engage directly experience over

with customers, formal education.

answer questions, Employees will be

showcase the assigned roles that

product’s unique align with their

qualities, and individual strengths

highlight its and expertise,

sustainability maximizing

benefits. They also productivity and

handle transactions ensuring high-quality

and manage customer output to support the

feedback to support mission of providing

continuous sustainable, eco-

improvement. friendly products.

5.4 Compensation

Position No. Monthly Annual

Laborer 2 P 12,000.00 P 144,000.00

Seller 1 P 6,000.00 P 72,000.00


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

5.5 Organizational Structure

The business owner is Ms. Rechele Rugayan, the seller and the two laborer.

5.6 Legal Requirements

Permits / License form Amount

DTI PEMIT 500

MAYORS PERMIT 2000

Brgy. PERMIT 500

BIR 500

TOTAL 1,700
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Chapter 6

VI. Total Project Cost

Project Cost

Fixed Assets/ Capital investment

Shop building Improvement P15,000

Factory and Shop Equipment P2,425

Factory and Shop Furniture and Fixtures P10,934

Sub-total P28,359

Add: 10% Contingency P2,835.90 P31,194.9

Pre- operating & Operating Expenses

Permit and Licenses P3,500


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Rental P3,500

Purchases - Raw Materials P7,500

Factory & Shop Supplies P1,770

Sub-total P16,270

Add: 10% Contingency P1,627 P17,897

P49,091.9

6.2 Sources of Funds The funding required for the proposed firm will be
sourced from the owner's savings.

6.3 Assumptions Underlying Projections

1. Sales increase by 5% per year.

2. Sales return and Allowances are estimated at 2% of total sales.

3. Purchase increase by 10% per year.

4. Estimated finished goods will increase 10% every year.

5. Rentals, electricity, and water expenses will increase by 10% per year.

6. Salaries will increase by 10% every 2 years.

7. Depreciation is computed using the straight-line method.

8. Miscellaneous expenses are estimated at 10,000 per year.

6.4 PROJECTED CASH FLOW STATEMENT

LILY PAD SHOP


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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Cash Flow Statement

For the year ended December 31, 2024

LILY PAD SHOP

Projected Cash Flow Statement

Five-Year Period
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

LILY PAD SHOP

PROJECTED BALANCE SHEET

Five-Year Shop

LILY PAD SHOP


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Projected Income Statement

Five- Year Period


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Chapter 7
Financial Analysis
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Chapter 8

SOCIO-ECONOMIC IMPACT
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NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Socio-Economic Objectives:

• To emphasize the importance of this proposed business to the community and customer.

• To ascertain the advantage of this proposed business to the environment.

• To encourage the employees and owner to be more competent and assertive in every

action that he/she will make.

• To ascertain the contributions of this proposed business to the progress of

economy in Zaragoza, Nueva Ecija.

This proposed business was made to provide a significant contribution to the following:

To Owner,

The owners would especially profit from the planned business since it will give them a reliable

source of revenue and help the company reach its primary goal and improve its financial status.

To Employees,

Through seminars and workshops, the planned study would help the employees improve and

expand their abilities while also supporting their financial needs. To Community, By enabling the

community to participate in the production of the Lily Pads, the proposed business creates more

job opportunities. This will result in a decrease in the unemployment rate in the community of

Zaragoza, Nueva Ecija.

To the Environment,

The proposed business is located in the Public Market of Zaragoza, Nueva Ecija, and the

product is environmentally friendly. Instead of using environmentally harmful materials like


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

silicone and plastic, we decided to base our product on water lily stems. Thus, using water lily

stems to make handicrafts is a creative approach to use natural resources, particularly in areas

where water lilies are abundant.

To Creditors/Suppliers,

The proposed business will be an excellent source of revenue for both suppliers and

creditors. Creditors and suppliers are the primary resource providers for the intended business

operation, thus the owner and staff of Lily Pad Shop will keep close working relationships.

To Municipality,

The proposed business will be able to contribute fees to the municipality, such as the

mayor's permit and the Brgy. Permit, while also contributing tax to the local government, which

the local government will be able to use in their projects.

BIBLIOGRAPHY

"Choosing the Right Target Market" Journal from Investopedia. Retrieved from:

https://www.investopedia.com/terms/t/target-market.asp
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

"Creating a Successful Brand Inderntity. Journal from Investopedia. Retrieved from:

https://www.investopedia.com/terms/b/brand.asp

Dolan, R., Conduit, J., Fahy, J., & Goodman, S. (2017). Social media: Communication

strategies, engagement, and future research directions. International Journal of Wine Business

Research. Retrieved from:

https://www.sciencedirect.com/science/article/pii/S0167923621002177

Kurniati, M., Kusuma, I. G. A. T., & Harahap, R. (2020). "Utilization of Water Hyacinth for

Craft Products and Its Economic Benefits." Journal of Environmental Management and

Sustainability, Retrieved from:

https://www.researchgate.net/publication/366593455_MANAGEMENT_AND_UTILIZATI

ON_OF_WATER_HYACINTH

Shepherd (2000). Going it alone: Sole Proprietorship. Retrieved from:

https://openstax.org/books/introduction-business/pages/4-1-going-it-alone-sole-

proprietorships

CURRICULUM VITAE

PERSONAL INFORMATON
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name: Chrissa P. Rafanan

Address: Balanoy, La Paz Tarlac

Email: [email protected]

Mobile #: 09674288597

Date of Birth: January 12, 2002

Place of Birth: Tarlac City

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Catholic

Height: 5'3

Weight: 53.5

EDUCATIONAL ATTAINMENT

TERTARY:

Nueva Ecija University Science and Technology

Sumacab Este, Cabanatuan City, Nueva Ecija

S.Y 2021- Present

SENIOR HIGH SCHOOL:

La Paz National High school

San Roque, La Paz, Tarlac


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

S.Y 2018-2020

JUNIOR HIGH SCHOOL:

La Paz National High School

San Roque, La Paz, Tarlac

S.Y 2014-2018

ELEMENTARY SCHOOL:

Balanoy Elementary School

Balanoy La Paz ,Tarlac

S.Y 2008-2014

PERSONAL NFORMATION
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name: Ishi Aira D. Garrido

Address: Santo Tomas North, Jaen, Nueva Ecija

Email: [email protected]

Mobile #: 09752591391

Date of Birth: August 22, 2002

Place of Birth: Jaen, Nueva Ecija

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Catholic

Height: 5'2

Weight: 53

EDUCATIONAL ATTAINMENT

TERTIARY:

Nueva Ecija Universty of Science and Technology

Sumacab Este, Cabanatuan City, Nueva Ecija

S.Y 2021- Present

SENIOR HIGH SCHOOL:

Saint Rose of Lima Catholic School

Sta. Rosa, Nueva Ecija


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

S.Y 2019-2021

Junior High School:

San Pablo National High School

San Pablo, Jaen, Nueva Ecija

S.Y 2015-2019

ELEMENTARY SCHOOL:

Santo Tomas North Elementary School

Santo Tomas North, Jaen, Nueva Ecija

S.Y 2009-2015

PERSONAL INFORMATION
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name: Karylle Mae B. Doronio

Address: San Rafael, Zaragoza, Nueva Ecija

Email: [email protected]

Mobile #: 09304967619

Date of Birth: July 27, 2002

Place of Birth: Zaragoza Nueva Ecija

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Roman Catholic

Height: 5'2

Weight: 52

EDUCATIONAL ATTAINMENT:

TERTIARY:

Nueva Ecija University of Science and Technology

Sumacab Este, Cabanatuan City, Nueva Ecija

S.Y 2021-Present

SENIOR HIGH SCHOOL:


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Zaragoza National High School

San Rafael , Zaragoza, Nueva Ecja

S.Y 2019-2021

JUNIOR HIGH SCHOOL:

Zaragoza National High School

San Rafael, Zaragoza Nueva Ecija

S.Y 2015-2019

ELEMENTARY SCHOOL:

Zaragoza Central School

Zaragoza, Nueva Ecija

S.Y 2009-2015

PERSONAL INFORMATION
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name: Leslie may dela cruz

Address: Peñaranda NE

Email: [email protected]

Mobile #: 09814564862

Place of Birth: Cabanatuan City

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Catholic

Height: 5'3

Weight: 53

EDUCATIONAL ATTAINMENT:

TERTIARY:

Nueva Ecija University of Science and Technology

Sumacab Este, Cabanatuan City

S.Y 2021- Present

SENIOR HIGH SCHOOL


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Peñaranda Senior High School peñaranda NE

S.Y 2019-2021

JUNIOR HGH SCHOOL

Peñaranda National High School

Peñaranda NE

S.Y2015-2019

ELEMENTARY SCHOOL:

kapt. pedro Villanueva Elementary School

Sinasajan, Peñaranda, NE

S.Y 2009-2015

PERSONAL INFORMATION
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name: Lorea T. Gamit

Address: San Isidro, Zaragoza, Nueve Ecija

Email: [email protected]

Mobile #: 09679450148

Date of Birth: February 1, 2003

Place of Birth: Tarlac, Tarlac

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Catholic

Height: 5’2

Weight: 42

EDUCATIONAL ATTAINTMENT:

TERTIARY:

Nueva Ecija University of Science and Technology

Sumacab Este, Cabanatuan City, Nueva Ecija

S.Y 2021- Present


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

SENIOR HGH SCHOOL:

Zaragoza National High school

San Rafael, Zaragoza, Nueva Ecija

S.Y 2019- 2021

JUNIOR HIGH SCHOOL:

Zaragoza National High School

San Rafael, Zaragoza Nueva Ecija

S.Y 2015-2019

Elementary School:

San Isidro Elementary School

San Isidro, Zaragoza, Nueva Ecija

S.Y 2009-2015

PERSONAL INFORMATION
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name:: Myrine M. Javier

Address: Cabucbucan, Rizal, Nueva Ecija

Email: [email protected]

Mobile #: 09916861419

PERSONAL BACKGROUND:

Date of Birth: March 31, 2003

Place of Birth: Rizal, Nueva Ecija

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Roman Catholic

Weight: 45kg

Height: 5’2

EDUCATIONAL ATTANMENT:

TERTARY:

Nueva Ecija University of Science and Technology

Sumacab Este, Cabanatuan City, Nueva Ecija

S.Y 2021- Present


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

SENIOR HIGH SCHOOL:

Rizal National High School

S.Y. 2019-2021

JUNIOR HGH SCHOOL:

Cabucbucan National High School

Cabucbucan, Rizal Nueva Ecija

SY 2015-2019

ELEMENTARY SCHOOL:

Cabucbucan Elementary School

Cabucbucan, Rizal, Nueva Ecija

S.Y. 2009 - 2015

PERSONAL INFORMATION
Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

Name: Rechele Q. Rugayan

Address: Purok 4, Brgy. Manggitahan, Dilasag, Aurora

Email: [email protected]

Mobile #: 09368350656

Date of Birth: October 01, 2003

Place of Birth: Manggitahan, Dilasag Aurora

Gender: Female

Civil Status: Single

Citizenship: Filipino

Religion: Roman Catholic

Height: 5'3

Weight: 46

EDUCATION ATTAINMENT

TERTIARY:

Nueva Ecija University of Science and Technology

Sumacab Este, Cabanatuan City, Nueva Ecija

S.Y 2021- Present


Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
College of Management and Business Technology, Sumacab Este,
Cabanatuan City, Nueva Ecija

SENIOR HIGH SCHOOL:

Palayan City National High School

Brgy. Atate, Palayan City, Nueva Ecija

S.Y 2019-2021

JUNIOR HIGH SCHOOL:

Manggitahan National High School

Purok 2, Brgy. Manggitahan, Dilasag Aurora

S.Y 2015-2019

ELEMENTARY SCHOOL:

Manggitahan Elementary School

Purok 3, Brgy. Manggitahan Dilasag Aurora

S.Y 2009-2015

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