dormitorio dello studente
DESCRIPTION
feasibility studyTRANSCRIPT
ST. LOUISE DE MARILLAC COLLEGE OF SORSOGON
HIGHER EDUCATION DEPARTMENT
S.Y. 2015 – 2016 First Semester
DORMITORIO DELLO STUDENTE
FEASIBILITY STUDY
In Partial Fulfillment of the requirements in the degree of
Bachelor of Science in Accountancy
Submitted by:
CELESTINE JOY GERES
JOAN DEUNA
ALYSSA DECANO
ACKNOWLEDGMENT
TABLE OF CONTENTS
EXECUTIVE SUMMARY
CHAPTER I
Market Feasibility
A. Demand and Market Study
Sorsogon City has all the major resources when it comes to education. The aggressive
move of the Colleges around the area to further improve its academic programs and
facilities will eventually result to the increase of student population. Students from all
over the localities move to the city to gain a good quality education. These developments
will definitely bring a need for safe, livable, affordable and comfortable housing
accommodations for these students in the future. Demands on rooming houses have all
been increasing for the past 5 years. It has been an increasing trend of business venture
for entrepreneurs. Rooming houses are a good diverse service provider to its consumers,
as well as providing an opportunity for the local government in generating income
through taxes paid by the operator engaged in the business. Dormitorio dello Studente
provides a service composed of different characteristics to its tenants. It caters and satisfy
the different needs based on its costumers’ different demands.
1. Market Segmentation
Market Segment Characteristics/Type
A. Security Physical and environmental safety.
B. Comfort Harmonious, homey, place of relaxation.
C. Cleanliness Organized and good living condition
environment.
D. Healthful Well sanitized environment and
surroundings.
2. Demand Analysis
The primary target market of Dormitorio dello Studente are the students of Sorsogon
City. The various market of the proposed dormitory constitutes the demand for this
service. Considering the nature of the business, fluctuation on demand rate is possible
throughout the operation. The Dormitorio dello Studente promotes and maintains the
well-kept sanitation control and homey feel environment that most of the students need
on their daily activities and routine.
In economic upturns, the demand for dormitories tends to be particularly strong
especially to the places where majority of educational institutions can be located.
Sorsogon City create business opportunities intensely for entrepreneurs, thus increasing
the value of economy all the way through the time.
3. Market Preference
The market is predominantly students so rental rates is a major concern. The
dormitory is a forty-room dormitory. Since, the dormitory will have amenities that are
usually needed by students, rental rates will not be a major consideration in choosing a
student housing.
B. Sales forecast and Marketing
Local accommodation management owner provide a just and satisfactory service to
most of its tenants. Boarding houses are the enterprises that give a lot of competition to
the owners or operators in this industry. Different criteria and schemes are introduced in
gaining and convincing existing and potential tenants. The Dormitorio dello Studente is a
business venture providing a necessary environmental components of safety, healthful
and sanitary. Prioritize the comfort and satisfaction of its tenants through providing and
recognizing their well-being affected by the living condition offered by the dormitory.
Gaining potential tenants through flyers and tarpaulin advertisement promotion strategy,
the dormitory occupants are estimated.
Estimate of Sales Revenues
The Dormitorio dello Studente is likely to recognize a total of P1,248,000.00
projected revenue in its 2nd year of operation. Meanwhile, during the first year, the
business venture cannot be able to generate revenue for the construction of the
dormitory building. The project has the probability to increase its average service
price due to increase in demand.
PROJECTED SEVEN YEARS REVENUE
Year Yearly Costumer
Rate
Average Service
Price
Total Projected
Revenue
1
2 65% 1000 1,248,000
3 70% 1,000 1,344,000
4 75% 1,000 1,440,000
5 80% 1000 1,536,000
6 85% 1,000 1,632,000
7 95% 1,000 1,824,000
CHAPTER 2
TECHNICAL FEASIBILITY
A. Program Summary
The project will house 160 students in a total area of 1,335. There are three primary
program components:
1. STUDENT ROOMS
There will be 20 rooms available for each floors (2nd and 3rd) and a maximum
of 4 students will be accommodated in each room. Each room will be furnished
with these basics:
Curtains
Two Bunk beds
Study desks with chairs
Four Closets
Stand fan
2. COMMON SPACES
Common spaces will be provided for the students on each floor. On the ground
level, a multi-purpose hall will accommodate meetings and students guests. Study
lounges will be provided on each of the upper two levels with a sala set feature. A
laundry area located at the roof deck will be provided for the students.
3. CANTEEN
Dining facilities will be open to the students every day where students can have
their meal in a cheap price but maintaining the quality of the food.
4. ADMINISTRATIVE OFFICE
The office hour starts at 9:00-11:00 in the morning and will resume transaction
at 1:00 pm up until 4:00 pm. The administrative office conduct all the transaction
from admission up to payment of rent fees of its tenants. It will be furnished with
the following furniture and fixture:
Office Desks
Computer set
Stand Fan
B. Plant Capacity
YEAR CAPACITY UNITS (ROOMS)
1 - -
2 65% 26
3 70% 28
4 75% 30
5 80% 32
6 85% 34
7 95% 38
C. Location Map
The area selected for the proposed building is appropriately located within the
City at Barangay Piot, Sorsogon City. The area is accessible to different schools
within the City. It is a five-minute walk to college schools like Bicol Merchant Marine
College, Inc. and Aemilianum College. The place is accessible for public transport
which is three to five minute drive to the City proper where shopping areas and
different department stores can be found.
D. Plant Layout
E. FURNITURE AND FIXTURE
Dormitorio dello Studente believe that necessary improvements are essential to
achieve its objectives in providing a good quality of service to its tenants.
Furniture and Fixture No. of Units Estimated Cost Total Estimated Cost
Utilities Supplies 1 3,000.00 3,000.00
Bunk Beds 80 3,500.00 280,000.00
Closet 160 1,000.00 160,000.00
Curtains 40 100.00 4,000.00
Study Desk 40 1,500.00 60,000.00
Sala Set 2 5,000.00 10,000.00
Stand Fan 40 800.00 32,000
Total Estimated Cost 549,000
F. OFFICE EQUIPMENT
Computer Set 25,000
Office Desk 1,500
Total Estimated Cost 26,500
G. Flow Chart
CHECKING FACILITIES & EQUIPMENT – Administrative staff will check the
conditions of the dorm before the tenants occupy the room for safety purposes.
HIRING OF PERSONNEL – It is important to hire personnel such as guard, for
the securities of every person in this dorm; maintenance for the cleanliness of the
facilities; and administrative staff for inquiries and others as needed.
ACCEPT TENANTS – The dormitory are encouraging students living outside
the city proper to provide cheap and convenient place to stay away from home.
ACCEPT RENTALS FOR COMMERCIAL SPACE – At the first floor of our
dormitory, we have two (2) commercial spaces to be rented by the person who wants to
operate their own business like canteen and gym.
PAYMENT PROCEDURES – If the customers are satisfied at our dormitory, and
they are interested to accommodate some rooms, we will explain them the procedures for
payment and the policy for payment is one (1) month advance and 1 month deposit.
ESTABLISHING SECURITIES– We want to protect our tenants to those people
who has bad intentions to our dorm, so we will hire a security guard to monitor the
people entering the dorm.
ACCEPTING THE VISITORS OF TENANT – The tenant must inform the
administrative staff that they have friends, relatives, classmates that will visit them. And
the visitors will wait at the visitor’s area only.
IMPLEMENTING THE RULES & REGULATIONS – The rules and regulations
of the dormitory will be posted at the information desk and it will be explain to every
tenant living in the dorm.
SERVING PEOPLE – We will serve our beloved customers to satisfy their needs
and to help them find a home that they never fell emptiness and to have peaceful outlook
in life.
CHAPTER III
Management Aspect
1. Management of the Project
A. During the pre-operating period, the sole proprietor and the supervisor hired for the
project oversee the activities and construction of the building for the preparation of
the business venture. Both supervised the progress of the project and monitor the cost
invested and expensed placed therein.
B. The Dormitorio dello Studente is an establishment owned by a sole proprietor. It is a
service provider to the students which gives quality renting space and environment.
Personnel are hired to afford a quality service provided and to accommodate the
needs of its tenants.
Organizational Chart
Dormitorio dello Studente is an accommodation management service
capitalized by a sole proprietor who acts as the manager and cashier of the
business venture. Oversee the situation of the students/tenants of the dormitory
and stands as the landlord of the rooming house venture. To help the owner in
managing and supervising the business project, an administrator, maintenance
crew and utility worker are hired to assist in the daily transaction and activity of
the project. The administrator is concern with admitting the tenants to the
dormitory. Responsible for acquiring the basic information of the students
through the admission form provided by the business project. The maintenance
crew administer the proper waste disposal and maintain the cleanliness of the
surroundings of the establishment.
Unit Management
Personnel
Time to be
Devoted to the
Project and
Duties
Qualifications Compensation
Administrator 8 hrs. 7,000
Maintenance
Crew and Utility
Worker
8 hrs. 6,000
C. To effectively provide a quality service, certain qualifications are required from the
hired employees of the dormitory.
Labor Skills
Required
Number of Labor
Required
Qualifications Compensation
1 7,000
2 6,000
D. Recruitment and Training Programs
1. Selection and placement
a. Experience
There is no substitute for the experience. The management prefers
applicant who have gained experience through the years of exposure to job.
They hold this to say that it takes time before one is able to acquire a
necessary and desirable experience.
b. Physical Characteristics
This is important for certain kind of work especially those requiring the
use of stamina or physically strong workers carrying heavy load. Good health
means resistance to diseases and therefore less absences that are bane of the
management in that they could result to the slow pace in production and as a
consequence a reduction in output.
c. Mental Alertness
This is known under the popular term intelligence. Those possessing high
degree of intelligence generally prove as an asset to the organization for the
simple reason that they could use their mental faculties and make individual
decisions without unnecessarily relying on their superiors.
d. Attitude toward Employment
If an employee considers his work as nothing more than a job. He is not
bound to accomplish much. As such, this type of employee cares less whether
he produce enough or performed in an adequate level of energy.
e. Adaptability
A rational individual must be able to adapt the changing condition, that is,
he must be flexible. Employees must always try to prove their worth to the
organization.
f. Personality
Where the nature of business require constant exposure to the public,
undoubtedly those possessing with a strong and pleasing personality are
preferred over the other applicants.
g. Educational Background
Those who have pursued and finished college courses are generally
preferred over those who were not able to. In fact, literacy does not merely
mean ability to read and write. Rather, it means being able to understand what
he has read and putting to a good use what he has learned.
Acquiring the best human resources is an important challenge for the
accommodation business because the efficiency and effectiveness of the
performance of a business depends much to its employees. Similarly, if an
organization makes the accurate selection decision, it is possible to minimize
turnover rates.
2. Training Programs
One common approach to the problem of how to improve the efficiency
and effectiveness of performance on the part of the workers and employees is
through intensive training programs. Effective training enables an employee to
learn and perform the job proficiently.
Training maybe simply described as the process of increasing the skills
and knowledge of the personnel for the purpose of improving individual and
organizational performance to attain its objectives and development.
The Dormitorio dello Studente sends its employees to undergo trainings
and seminars which are related to their respective area of expertise and
accommodation management assemblies. These are essential to set the mode of
the employees on the job they are about to hold.
Training programs are important in ensuring employees productivity.
Gaining additional knowledge would mean increase in profitability and fostering
strong consumer’s satisfaction.
E. FRINGE BENEFITS
Dormitorio dello Studente provides employee benefits especially to those managerial
and administrative positions. Covered employees are entitled to a package of benefits
under Social Security, PhilHealth, and PAG-IBIG.
1. SOCIAL SECURITY SYSTEM
Social security system provides for a replacement of income lost on account of
the aforementioned contingencies. The benefits under the programs are as
follows:
Sickness benefits
Maternity benefits
Disability benefits
Retirement benefits
Death benefits
CONTRIBUTION:
The monthly contributions are based on the compensation of members. The
current SSS contribution rate is 11% of the monthly salary credit not
exceeding P16,000 and this is being shared by the employer (7.37%) and the
employee (3.63%).
2. PAG-IBIG FUND
This program promotes home ownership through the establishment of an
affordable and adequate housing credit system for its members. It also provides
small and short-term loans. Membership in the fund is mandatory upon all
employees covered by the Social Security System and their respective employers.
3. PHILHEALTH
The program provides health insurance to its members. It is one of the benefits
employers should provide to its employees mandated by our Philippine law.
F. WASTE MANAGEMENT PROGRAM
Generating waste is almost unavoidable in today’s living condition. Waste
management programs play an integral role across the world by providing the proper
disposal of different kinds of waste such as garbage and refuse. This waste may
include both hazardous and non-hazardous materials, as a result there should have
specific waste management programs to handle properly and dispose any forms of
trash. Depending on the type of service offered, a waste management program may be
overseen by private business entities that specializes in the disposal of specific type of
trash.
Waste management facilities maybe in charge of a number of disposal related
programs including medical waste management, hazardous or toxic waste
management, recycling programs, and trash collections. The placement of the
companies that specialize in waste disposal can vary depending on the demand for
their service, and the availability of waste professionals within the location they are
needed.
A typical waste management program is responsible for the daily and weekly garbage
pickup and disposal from any business ventures. The waste management programs
may also require an additional service, such as recycling, depending on the type of
waste collected.
Dormitorio dello Studente observe specific process for waste management disposal
system:
1. COLLECTION/PREPARATION
The hired maintenance crew of the business project is responsible for the
collection of trash disposals of each tenants on their respective dorm units and
proper waste disposals from the corresponding units.
2. IDENTIFICATION AND SEGREGATION
Once collected, wastes are properly identified and segregated whether it has the
probability and characteristics of a recyclable material. This is an effective
method on how to properly dispose trash and wastes.
3. DISPOSAL
A proper way of dumping wastes should be observe in following different rules
and regulations imposed by the local government.
CHAPTER IV
FINANCIAL ASPECT
I. TOTAL INVESTMENT COST:
A. Cost of Land : P 2,752,500.00
B. Estimated Cost of Construction
Contract Name:
Construction of 3-Storey Dormitory Building
Location: Brgy. Bitan-O Dalipay, Sorsogon City
SUMMARY OF BID PRICES(All Parts of Bill of Quantities)
Part No. Part Description Total Amount
I Mobilization/Demobilization 4,480.00II Safety and Health 20,832.67III Earthworks
Item 803 : Excavation of Column Footing and WF 33,000.00Item 804(a) : Backfilling of Excavated Materials 28,451.50Item 804(b) : Gravel Bedding @ CF, SW, WF, FTB, SOF
495,633.90
Item 804(c) : Embankment 100,298.88IV Termite Control Works (Soil Poisoning) 182,224.25V Concrete Works 8,170,971
.06VI Rebar Works 117,859.41VII Masonry Works (CHB) 1,001,297.68VIII Cement Plaster Finish 800,646.88IX Doors 70,156.80X Windows 83,148.80XI Tile Works 4,001,278.32XII Ceiling Works 2,248,640.00XIII Roofing Works 504,893.84XIV Structural Steel 1,501,570.54
Fixed Investment Costs Land 2,752,500.00 Buildings 21,207,486.45 Office Equipment 26,500.00 Furniture & Fixture
549,000.00 Total initial fixed investment 24,535,486.45Working capital 100,000.00Pre-production capital Expenditures 1,128,845.66 Total initial investment costs 25,764,332.11
XV Painting Works 1,581,937.12XVI Electrical Works 94,841.60XVII Plumbing Works 89,514.88XVIII Sanitary Works 75,808.32
TOTAL AMOUNTS 21,207,486.45
C. Estimated Pre-operating Expenditures
Building Permit Fees 10,561.66Zoning Clearance 1,108,974.00Electrical Installation Fees 5,000.00Mayor's Permit Fees 530.00Sanitary Permit Fees 450.00CENRO Certificate Fees 1,000.00BFP Clearance Fees 1,000.00DTI Fees 215.00BIR Permit 1,115.00Total Permit and Licences Expenses: 1,128,845.66
COST OF THE PROJECT
ECONOMIC EVALUATION
Break-Even Analysis
Price ……………………………………………………… P1,000.00 100%
Less variable Expenses……………………........................ 227.00 22.7%
Contribution Margin……………………………………… 773.00 77.3%
Revenue = Variable Expenses + Fixed Expenses + Profits
1,000X = 227X + 1,058,869.95 + 0
773X = 1,058,869.95
X = 1058,869.95 / 773
X = P1, 369,818.82
Analysis:
On the second year of operation, the dormitory will be able to cover its expenses
and will gain a profit of P178,181.18.
The degree of operating leverage:
Contribution Margin / Net Income = Degree of Operating Leverage
773,000 / 418,756.81 = 1.85
Payback Period:
CHAPTER V
SOCIO-ECONOMIC STUDY
A. SOCIAL IMPACT
The Dormitorio dello Studente will have a significant impact on creating
employment opportunities which not only directly benefit local people but also act as a
catalyst for delivering regeneration and economic benefit.
Create employment for the administrative positions.
Help develop the community by offering working salary to its utilities.
Deliver a higher standard for security to the students.
B. ECONOMIC BENEFIT
Increase in tax collection by the local government unit through its operations.
Help to decrease the unemployment rate in Sorsogon City by offering job opportunities to
its localities.
SURVEY
(TALLY)
Gender:
Male – 43 %
Female – 57 %
Age:
16 to 18 yrs. Old – 51.72 %
19 to 21 yrs. Old – 41.38 %
22 and above – 6.90 %
Address:
Bulusan – 30.77 %
Barcelona – 23.07 %
Prieto Diaz – 19.23 %
Magallanes – 7.69 %
Gubat – 7.69 %
Casiguran – 3.85 %
Matnog – 3.85 %
Irosin – 3.85 %
1. What factors can affect you in choosing your boarding house?
oDistance from your school – 30.508 %
oSecurity – 32.203 %
o Price – 20.339 %
o Boardmates – 15.254 %
o Others (accessibility) – 1.695 %
2. Are you satisfied with your current boarding house?
o Yes – 87 %
o No – 13 %
3. What problem do you encounter in your current boarding house?
o Distance from school – 12.12 %
oSecurity of place – 24.24 %
oPrice – 15.15 %
o Boardmates – 33.33 %
4. Would you like to have a security guard on your boarding house?
o Yes – 43 %
o No – 57 %
5. Would you prefer to have your own canteen at the boarding house?
oYes – 83 %
o No – 17 %
If yes, then in what manner would you like to pay your food expenses?
Pay as you order – 82.61 %
To be added on your rent fee – 17.39 %
6. On what range are you willing to pay for your comfort as a tenant?
o500 -700 – 43 %
o701-1,000 – 50%
o1,001-1,500 – 7 %
7. Do you prefer having a curfew hour?
oYes – 40 %
o No – 60 %
At what time do you want your curfew to take effect?
9pm to 10pm. – 50 %
11pm to 12midnight – 50 %
8. What policy or rules from your current boarding house would you like to impose if ever
you decided to transfer to another boarding house?
oHaving a canteen
oNo curfew hour
oNo visitors allowed
oWaste management
oNo restriction on using water & electricity
oRespect for fellow boardmates