116964017 folding bag feasibility study

8/12/2019 116964017 Folding Bag Feasibility Study

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CHAPTER I


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CHAPTER I


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Plant Size

PRODUCTION SITE

DOO

R

Place to put the sample bags and the office where

wholesalers can order

DIP!"#

DOOR


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Brief Description

of the Project

Folding Bag Co. concept is a fast and simple

folding mechanism which

allows the bag to be quickly folded around its base

and secured. So it can be

reduced to a slim, pocket sized package in just a few

seconds. nd because

the base is rigid, the package always

stays neat and flat.

Folding Bag Co. product bags differ from other

reusable bags because

t

h

e

y

!

"a#e no

awkward storage

pouch

Fold$away flat

for easy storage

"a#e a proper gusset

and semi$rigid base

%o not

crumple or lose


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shape


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Proj

ect

Sum

mar

y

Maret

!easi"il

ity

&he o#er all marketing aspect of the business is

suitable of the supply

and demand but more or less capturethe markets situation.

&he future operation will not be a problem in

#iew of the supply and

demand but more or less capture

the market situation.

'e will acquire an implement current strategies

in the bag product to

make sure that the business will

remain competiti#e.

Technical

!easi"ilit

y

&echnical capabilities in the product ser#ice

#ary widely across the

de#eloping world. &he le#el of technology applied

being highly dependent on

the o#er all status of technology de#elopment

within a particular country.


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&he partners will be applying modern

technology in the establishment

of our business. &hey wi l l be us ing modern too ls

and equipment and

pro#iding new facilities to the

demands of the customer.

Mana#ement

!easi"ility

&he project would be managed by newly

graduates or newbies that

would try on conquering the world of bags using

materials that are earth

friendly. &o distribute econo$bags that are in s tyle

and can be folded if not

use. Space free, affordable and attracti#e designs

would be introduce in the

m

a

r

k

e

t

.


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!inancial

!easi"ilit

y

&he total in#estment of the project wil lamount to (hp. ),***,***

partner+s capital. &he init ial in#estment wil l be

used in purchasing the

materials, machines and equipment, supplies,

building reno#ation and other

requirement in the operation

of the business.

ost of the money would be used mainly for

production cost as stated

abo#e. &he f inancial status is said to be stab le

s ince the income is

continuously increasing as the

business progresses.

Socio$

Economic

Impact

&he project is calculated to ha#e a big

contribution in the economy. -t

wil l be a source of employment to brought youngpeople and old in the

community, creating substantial income for

indi#idual and families aside

from pro#iding income. -t also makes the employees

producti#e and a better

person in


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the

society.

-t will also pro#ide a formal job training and

eperience to college

students who requires for their course

before they graduate.

/astly, the project will help the go#ernment

because of taes that will

be pay ing tha t l ead to the de#e lopment o f

commun i t i e s and o ther

go#ernment ser#ice, and the main course of all,

this bag would help the

country to a#o id p last ic use in depar tment

stores and smal l s tores

nationwide. n earth$friendly bag would be

introduce by Folding Bag Co.


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b

e

0

i

f

c


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(

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r

a

"

C

-


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C

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q

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c


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CHAPTER


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CHAPTER


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Metho,olo#

y

&he research is a combination of a descripti#e$

quantitati#e design.

&he descripti#e method is designed for the in#estigator to

secure responses

to questions that are factual and practices of which the

respondents are

presumed to ha#e

knowledge.

&he research is geared towards the fulfillment of a

common goal that

included the study habits of the respondents in relation to

their academic

performance. &his descripti#e design was used as the method

of research

since it describes the nature of a pre#ailing conditions and

practices, and

seeks accurate description of acti#ities, objects, persons and

processes. &his

method is belie#ed to be the most appropriate in securing

e#idences about

the present condition of a group of persons, class or e#ents

and may in#ol#e

conduction, analysis and measurement. &he researcher

decided to utilize

the descripti#e method because the study tried to find out the


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present facts,

concerning the present status of Folding

Bag Co.


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Deman,

s electricity and other related products ha#e been an

essential in

e#ery Filipinos cra#ed for memories, it is consider as a prime

commodity. -t

if therefore safe to assumed that the demand for the function

room is always

at the right time. 2specially now that there are so many

people who are

busy with their professions and needs a right hand for

their occasions.

&he rising cost of electricity bill pro#ed that the demand

continue to

rise or

grow.

(rojected demand for fi#e345

years

--------------------------

----

+EAR

C(ST.SA/ES

--------------------------

----

6styear7*6*

7nd

year7*66

8r

d


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year7*67

9thyear7*68

4thyear7*69

):4,7)*.**

:9*,*99.**

:);,*9


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&he demand is belie#ed to increase 6*= in each year

because ha#ing

an increase in electricity

bill.

012 Supply

01213 Supply for the past

years

&he projected supply for fi#e year is belie#ed to be

the following>

??????????????????????????????????????

+EAR SA/ES 4 of

DEMA*D

???????????????????????????????

???????

7*6*

7*66

7*67

7*68

7*69

):4,7)*.**

:9*,*99.**

:);,*9


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ccordingly, the demand is also the supply analysis andthat there are

increase of 6*= in e#ery supply in

each year.


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015 Deman, an, supply analysis6

,eman,.supply #ap

ccordingly, this table tells the true history for this kind

of business.

&his business would def in i te ly boom for the fac t that

there are more

students and parents who would be more willing to own

this kind of bag

that is low$cost, space$less and is handy, and thus school+s who

will require

this kind of bag would l ike to recommend our bag because

it is an eco$

friendly

bag.

nd thus Folding Bag Co. would meet their needs fordemand and

supply for the years to

come.


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Maretin#

Strate#ies

Pro,uct

&he product is the name itself F@/%-A B.

&here are

different

types of bag that would be made to sell these are

the following

(02

0A2

B0-"&

0A2


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B2A0- 0A2

Pro,uct Cate#ory

&he following are the product

category.

Bag size 410 x 330 x 110 mm 410 x 330 x 110 mm 370 x 300 x 95 mm

Approx size when folded 110 x 85 x 25 mm 110 x 85 x 20 mm 105 x 75 x 15 mm

Bag weight 90g 80g 50g

ol!me "15 litres "15 litres "10#5 litres

$a%ri& 'rgani& &otton ()lon * pol)ester mix +ipstop n)lon

,aterproof- (o .hower proof .hower proof

,ashing /nstr!&tions (ot re&ommended# !e a&hine wash on low a&hine wash on low

to the organi& properties temperat!re temperat!re

of o!r &otton %ags the

fa%ri& &an shrin whenwashed een at a low

temperat!re

andle /nfo .hort and long handled .hort and long handled .hort handles onl)

ersions aaila%le ersions aaila%le

$astening method $ree fastening &otton el&ro strap 6lasti& loop

strap


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Paca#in#

Folding Bag Co. prepare eco$bag and boes. -t will ha#e a

logo of

Folding Bag Co.


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Pricin#

RETAI/ERS

SI7ES 8"acpac to

shoul,er

"a#9

SMA//

MEDI)M

/AR'E

PRICE

35:1::

%::1::

%5:1::

SI7ES 8shoul,er "a# to

han,

"a#9

SMA//

MEDI)M

/AR'E

PRICE

;:1::

3%:1::

35:1::


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Place of

Distri"utio

n

&he place of distribution would be in theni#ersity Belt. 'holesalers

are welcome, the product could be distributed to any

part of the country

because of the

wholesalers.

Promotions an,

A,>ertisin#

Promotion is one of the ma$or components of the compan%

total mar&eting

mi'ture The proposed business establishment will be promoted not

onl% personall% and

(erball%) but it will also be promoted through fl%ers or brochures itsad(antage to us to

promote our compan% because the nearb% mall also

located in our (icinit%

The establishment will concentrate on producing high *ualit%

bags and pro(iding

e'cellent ser(ices to ma&e sure that the customers will get a delightful

from the products

that the% would b% and from the word of mouth of patrons) there

would be new

customers that would li&e to tr%

our products


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Chapter IV

-Technical

Study

4.1 Objectives

of the study

+ To &now Si,ing and

structuring of the shop

+ To &now the product and ser(ices

of the business

+ To &now about the

mar&et competition

+ To be &nowledgeable about ma$or ad(ertisement that

would help the business

4.2

roduct! service

-olding .ag Inc has a (ariet% of ser(ices to offer and

from which to choose

During the first two %ears) the product

line will include/

4.2.1 "ses

of

roducts

The bags can use for shopping bag)gift bag)carrier

bag)pac&aging bag)

promotional

bag)ad(ertising


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bag)etc

4.#

$anufacturin%

rocess

re

-Op

erati

ons

This is the first stage of manufacturing process) these are

se(eral factors to be

considered to achie(e the minimum time effort) materials and

wor&ers) the preparation

ma% re*uire the

following acti(ities

0

O

r

g

a

n

i

,

a

ti

on

0


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Setting up the wor&ing area


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Setting up the wor&ing area


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4.#.2 &lternativerocessConsidered

&he location of the firm would be in theheart of the ni#ersity belt. -t

will secure a working and selling place near 2#er

all in orayta Sampaloc

a

n

il

a

.

H

e

a,

(

f

f

i

c

e

&he head office would still be in the same

place, near the 2#er all in


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Plant Size

PRODUCTION

SITE

D

O

O

R

Place to put the sample bags and the office

where

wholesalers canorder

DIP!

"#

DOO

R


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&inds) this in turn leads to sa(ing of time) effort and mone%which is essential for

the growth 5 prosperit% of

the enterprise

8$aiu rosperity for 3ployer 3ployees -

6anagement ensures

smooth and coordinated functioning of the enterprise This

in turn helps in

pro(iding ma'imum benefits to the emplo%ee in the shape

of good wor&ing

condition) suitable wage s%stem) incenti(e plans on the one

hand and higher

profits to the emplo%er on

the other hand

15uan betterent Social 6ustice -6anagement ser(es

as a tool for the

upliftment as well as betterment of the societ% Through

increased producti(it% 5

emplo%ment) management ensures better standards of li(ing

for the societ% It

pro(ides $ustice through its

uniform policies

/.2 7or of

business o*nership

The proponents chose to for 8iited artnership

because all the

individuals involved in the project are *illin% to share or

provide not only the


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capital reuireents but also their ability and s9ills to perfor

the obli%ation

assi%ned for the effective and efficient operation of the

business. The

proponents have a 0eneral partner and the rest are a liited

partner. The

0eneral ana%er *ill contribute 2/: of the capital and the other

partners *ill

contribute 1).'/: each *ith a

total of 1,,:


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The staff of this business has e*ual duties andresponsibilities in operating the

business to pro(ide coordination The profit loss will also be

di(ided according to the

capital contribution of each of

the proponents

"s for the compan%9s liabilit% the general partner will be

liable for debts which

ma% e'tend be%ond his capital contribution while the limited

partners liabilit% is onl% up

to the e'tend of theircapital contribution

/.#

Cap

itali

(ati

on

The capital of Cli*ues Resto+bar would be : 6illion

Pesos which will be

contributed

b% :

partners


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/.4 Or%ani(ational structure

;eneral 6anager

Telephone operatorsProduction control super(isor ualit% Control

"ssistant >ualit% Control

Repairer

Counter

Pac&er

?anitor

Securit% ;uard


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/./ $anpo*er reuireents

0eneral $ana%er

responsible for directing and controlling the wor& and personnel of a business or a

particular department with in the business

6onitor and chec& the performance of all outlets against target) ta&e note of

(ariances

"ttends to staff concerns and problems) build morale and teamwor& in his@her

department

Responsible for maintaining good public and client image

roduction Control Supervisor

Chec&ing all the materials

Chec&ing of *ualit% control products

Chec&ing of pac&ed products

Training new hired emplo%ees

roduction 5ead

Responsible in chec&ing all the raw materials

Chec&ing of the machine operations

;uality Control

Chec&ing all the materials

Chec&ing of *ualit% control products


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Chec&ing of pac&ed products

&ssistant ;uality Control

Re+chec& all the materials

Re+chec&ing of *ualit% control products

Re+chec&ing of pac&ed products

ac9er

Responsible in pac&ing finished products

$achine Operators

Responsible in operating the machines that ma&es the bag2

Counter

"fter all the chec&ing of *ualit% control) the counter is responsible in counting

bags as it is pac&ed b% the pac&er


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;ualifications

;eneral 6anager

6ale@-emale

College graduate) preferabl% with a business management degree

.etween 73 + 8: %ears of age

Should ha(e started a career in a ser(ice + oriented industr%

6ust be hardwor&ing and self + moti(ated


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"ssistant >ualit% Control

-emale) 74 %ears of age

;raduate of an% course

Can wor& on fle'ible hours

Pac&er

6ale) between 7: + 84 %ears of age

;raduate in an% course

6ust be good in handling co + wor&ers

6achine Operators

6ale) between 77 + 73 %ears of age

6ust be a college graduate with an% course


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6ale) 72 + 73 %ears of age

;raduate in ant 7 %ears (ocational course

Can wor& in fle'ible hours

Anowledge in a ser(ice industr%

Repairer

6ale) 72 + 73 %ears old

"n% 7 %ears course graduate


6ust be hard wor&ing

?anitor

6ale) -emale 72 + 73 %ears of age

"t least 7 %ears college degree


6ust be hardwor&ing

Securit% ;uard

6ale) 7: + 8: %ears old


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/.= Copensation

PERSONNE! NO

RE>UIRED

Pro$ect Engineer 2

Pa%roll 6anager 2

;eneral -oreman 2

=ead Carpenter 2

Carpenter 1


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/.' Or%ani(ation olicies

>enefits of the 3ployees

"ll hired emplo%ees of the business are entitled to the ff benefits/

2 28thmonth pa% for e(er% emplo%ee is entitled for the 28 thmonth pa%) which has

e*ui(alent to of the basic salar% of an emplo%ee within a month

7 SSS benefits a social securit% contribution will be pro(iding for the emplo%ees

8 Phil =ealth will be pro(ided for the hospitali,ation of emplo%ees

1 Incenti(es@bonuses + all emplo%ees with one %ear of ser(ice are entitled to an%

%earl% bonuses

: "nnual (acation lea(e + regular emplo%ees are entitled to annual ser(ice lea(e

of : da%s with pa% for e(er% one %ear of ser(ice

Sic& !ea(e + an% emplo%ees had a right to lea(e for the medicine

3 Paternit%@6aternit% lea(e + issue for the emplo%ees needs an emergenc% lea(e

$ana%erial >enefits

The managers are also entitled to benefits and pri(ileges en(ironmental to

emplo%ees plus the following/

2 Salar% increase depending on the state of the business e(er% %ear

7 The% will pro(ide 24F discount on all food item

8 The% will be gi(en a (acation) sic& or emergenc% lea(e

1 Paternit%@maternit% lea(e will also pro(ided

: 28thmonth pa%) SSS benefits) Phil =ealth) Pag + ibig benefits will be gi(en


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/.) 8e%al reuireents

In starting the operation of the business) the owners should complete the

necessar% documents and re*uirements needed for the legali,ationG this stage of

business is organi,ed in a formal manner) which re*uires registration in (arious

egulating go(ernment agencies

.efore a partnership can operate legall%) it must first to compl% with certain le(el

egistration that are summari,ed as follows/

Place of Registration

2 Securit% and E'change Commission HSEC

7 Department of Trade and Industr% HDTI

8 Cit% of 6unicipal =all Permit H6a%or9s Permit

1 .ureau of Internal Re(enue

: Social Securit% S%stem

Other "gencies as ma% be re*uired

In building business there are certain re*uirements to ma&e specific business

legal If the following cannot be obtained the operation will not function well

.IR 247 DTI application

.usiness Permit -or emplo%ees/ SSS)Phil=ealth)Pag+ ibig

.aranga% Clearance Declaration of real propert% ta'

-ire Inspection Certificate SEC

.uilding Permit


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Chapter VI - 7inancial Study

=.1 Objectives of the study

The financial stud% is important because it is tas&ed to find out whether the business

(entured will be profitable e(en in the place of competition and unfa(orable conditions

The stud% will also show in detail the upward mo(ement of the (entures finances a

period The financial stud% after underta&en) is best presented b% showing the

statements and schedules of the profits that are presented b% showing the statements

and schedules of the profits that are intended to be reali,ed It must also show the

sources and &ind of financing and the wa%s in which to repa% what it owed The stud%

will also reflect other financial information and data) which are needed in order for the

business (enture to succeed The financial stud% has se(eral parts) initiall%G there is the

portion which status assumptions These are (er% important for these assumptions

become the bases for the estimates

To come up with a good assumptions) one must loo& into business practices that

are currentl% followed in the same industr% as the proposed business "lso pre(ious

easibilit% studies) made in similar (entures as the one proposed might pro(e helpful

"nother important source of information for assumptions are go(ernment

egulations and policies) industr% profiles) conferences) business plan) and articles from

business associations ma% help

The ne't portion of the financial stud% is which discusses the total cost of the

pro$ect " compan% will need assets The ne't part of the stud% list down the sources

rom where mone% can be borrowed on ac*uire The list includes sources from where

ong and short term loans can be ac*uired


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=.2 Total project cost - all ites considered consuption ade

O?"CTIO@ COST

7IA3? C&IT&8

6achiner% and e*uipment 2)3:):B44

Utilities :B:)344

Total 7)8B2)17B44


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=.# Initial capital reuireents - all ites considered

The proposed business)-olding .ag Incis a ;eneral Partnership which means

hat there are three or more owners of this business "nd that the in(estment cost of

he business are sub di(ided into the owners capital) which total of/

/,,,,,,.,,

.4 Sources of financin%

=.4.1 Sources selected or proposed for both lon%-ter

and short-ter financin%

=.4.2 &lternative sources

=.4.# &ount and ters of financin%

The proponents of the pro$ect will not see& help from financing or ban& loan) but

rom their own sa(ings and with the help of their parents -rom this the compan% wont

need to rush up their sales $ust to pa% for their financial loan


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=.4.4 rojected balance sheet


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=./ 7inancial stateents

=./.1 &ssuptions

1. $iscellaneous epenses increase #: annually.

2. erit and license increases /: annually.

#. &dvertisin% epense increase 2: annually.

4. urchases increase /: annually.

/. Salaries and *a%es increase #: annually.

=. Office supplies increase #: annually.

'. "tility epenses increase #: annually.

). epair and aintenance increase /: annually.

+. ?epreciation epense coputed on a strai%ht line ethod.

1,. Sales increase /: =: ': ): and +: on succeedin% years.

11. 1#thonth pay increase #: annually.

12. Value added taes 12:.

1#. Incoe ta payable #/: on the @et Incoe before ta.


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:7 Pro$ected income

7oldin% >a% Inc

Incoe stateent

7or ?eceber #1 2,11

S&83S B:)7B444!ESS COST O-S"!ES

STOCAS 3B)844

!".OR COST B4)44444TOT"! COST O-S"!ES 2:B)844

0OSS O7IT 2)4:8)244

less /operating e'pense

electricit% 5 water 24)44444

rent e'pense 4)44444

ta'es 5 licenses 21)14444

selling e'pense B)44444

repairs 5 maintenance :B)44444

miscellaneous 4)44444

comp ad(ertisement 24)44444

contingencies B:)4B444

depreciation 1:)78844TOT"! OPER"TIN;EJPENSE B3B)32844

income from operation 231)74844

!ESS/ interest e'pense 78)4B44

TOT"! 2:2)22344

NET INCO6E 2:2)22344


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=./.# Capital cashflo* stateents

2,11 2,12 2,1#

2,14 2,1/

C

&

S

5

I

@

7

8

O

rea9-evenpoint analysis

.rea&+e(en calculations assume a 7:F to 84F gross

margin This is a

conser(ati(e estimate) and it will be impro(ed as strategic

relationships de(elop and the

benefits of -olding .ag Inc offerings are

reali,ed b% customers

>rea9-even&nalysis

.rea&+

e(en

"nal%sis/

6onthl% Units

.rea&+e(en

6onthl% Re(enue

.rea&+e(en

"ss

um

ptio

n

s

/

"

(

e

ra

g

e

P

e

r

+

U

n

it

R

e

(

e

n

u

e


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"(erage Per+Unit

Lariable Cost

Estimated 6onthl%

-i'ed Cost

:

)4

44

4

4

P:

)44

44

4

P74444

P

7

4

4

4

4


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=././.# Capital recovery andearnin%s

Sho*in% the cash payoff

period

The pro$ect met the income re*uirements of 73F Hcost of capital

since the total

computer NPL is greater than the total pro$ect cost The total

pro$ect cost is

811)844 and the computer

NPL is

#ear "nnual cash flow 73F net present

(alue P=P

744 33)B 434314

::)2:1

7443 273)134 47444

3)482

744B 2)83: 41BB2

:)BB

744 7B28:: 48B114

24B)2:7

7424 8B1)42B 4847B

22)781

NPL K 1:1)18 +


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23)B42

K7:

)8

B


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aybac9period

The in(estment will be reco(ered within 2 %ear and nine month This

means that

the pro$ect is feasible because the capital will be reco(ered in less

than 7 %ears

#ear

7422

74277428

7421

742:

Net cash flow

33)B

273)134

2)83:

7B28::

8B1)42B

total pro$ect cost

reco(ered

first %earto be reco(ered

first %ear

to be reco(ered

23)B42

+33)B

22)B88

8:

+273)13444

81

22)B88

81 K34B da%s

pa%bac& period K 2 %ear 22 monthsand 3 da%s


171/176


172/176

ate ofreturn

The computation shows an a(erage of 8:F which means that the

business is

ma'imi,ing its assets throughout the

operation

ROI + Net Income@ Total

"ssets

#E"R NET INCO6E "SSETS

ROI

7422 3)38: 7:8)77B

8484F

7427 27)783 88B)B:2

837:F

7428 2:)217 1:)7:3

814F

7421 7B4)277 38)4:B

8BBF

742: 8B7)3B: 2)27B)2::

888F

#

/

.

'

+


173/176

:


174/176


175/176

Chapter VII - Socio-

3conoic

'.1 Contribution to the hilippine

econoy

"s we start the business) there will be a benefit to the

go(ernment

or 6unicipal and national go(ernment "nd as of this

da%s more

business owners@establishment gi(es more ta'es) showing to

increase the

re(enues of the go(ernment So that re(enues can be

used in the

de(elopment of the communit% "ll these ta'es are

enforced b% the

go(ernment to e(er% business owners@establishment The

pro$ect will help

us increase the business and tooutgrow it

'.2 3ployent

%eneration

This can pro(ide $obs so s&illed and uns&illed person and

this is a great

benefit in the societ% "s for the coun tr% suffereda crisis of

unemplo%ment and the business can help the go(ernment in

decreasing

the unemplo%ment rate in the

countr%


176/176

'.# Social

desirability

-olding .ag Inc business also pla%s a big role in the

societ%) because

this business pro(ide good *ualit% of ser(ices and rec%cled

bags that the

customers need) sell this is a reasonable price and suppl%

needs of the

p

e

op

l

e

116964017 folding bag feasibility study

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