Veggie balls production in Barangay Sampaloc, Tanay, Rizal / Rea R. Abaga, Elmer D. Arcosiba, Michelle E. Martinez.

Thesis Bachelor of Science in Business Administration University of Rizal System Tanay 2019

Includes bibliographical references.

Management and Personal Feasibility The proponents of the project are Rea R. Abaga, Elmer D. Arcosiba and Michelle E.Martinez, who will act as capitalist/industrialist partners, while the investor Ms. Rinalyn R. Abaga, will act as capitalist partner. The proponents agreed to venture into partnership because it is easier and inexpensive to organize. The proponents will also finance all the necessary expenditures to formally start and operate the business. The opening of the production center will be on the third week of March 2018. There are four personnel who will operate the business: manager or cashier, marketing staff, production, and sales staff. They will report from Monday to Saturday for a total of eight hours a day and the opening will be at 6:00 AM and the closing time will be 3:00 PM. Their compensation will be based on minimum wage rate (LABOR CODE LAW, Article 99, Chapter II Minimum Wage Rates, RA 6727). Furthermore, all of them are required to attend pertinent trainings. Marketing Feasibility The target market will be composed of restaurants, eateries, wet markets and household of Barangay, Sampaloc, Tanay, Rizal. The Production of Veggie Balls is located at Marcos Highway Barangay Sampaloc, Tanay, Rizal near the church of Iglesia Ni Kristo. Based on the survey conducted, there was a demand on the proposed product. The competitors of the business in terms of product are fishball, kikiam squidball and pop egg. Nutriballs production should operate efficiently and effectively to satisfy target market and to build loyal relationship with the customer. Production Feasibility The production center will be located in Marcos Highway near the church of Iglesia Ni Kristo Barangay, Sampaloc, Tanay, Rizal. The building will be renovated to have a proper storage of the equipment. Personnel will work six (6) times a week from Monday to Saturday for a total of eight (8) hours a day. The business opens at 6:00 am and closes at 3:00 pm. The Production of Veggie Balls shall follow the good manufacturing practices to attain desired quality and to avoid contaminations. Ingredients are gathered at Sampaloc public market and the product will be priced Php120.00 per pack with 20 pieces and will be distributed in several households, restaurants, eateries and wet market in Sampaloc, Tanay, Rizal. Financial Feasibility The total project cost amounting to Php1,294,042.66 will be invested by the partners. It constitutes the necessary expenses for the month, which include permit, fees and licenses, purchase of machinery and equipment, office supplies, cost of materials and labor needed for the renovation of the area and other expenses that will be incurred in the preparation of the business also the initial capital requirement is amounting to Php1,300,000.00. During the first year of operation, the business is expected to earn a net sales amounting to Php1,872,000. In Profit in Sales Ratio of 0.25, indicates that for every PhP1.00 sales, there is a net income of 0.25 pesos and its continuously increasing foe every succeeding year of operation. The computed Profitability Ratio analyses for the first year of operation reflects that the Rate on Return of Asset (ROA) is 0.28, Return on Equity (ROE) is 0.40, Return on Investment (ROI) implies is 1.76. These ratios signify a very favorable return in the operation of the business. The computations shown indicate the profit soundness of the business as expressed in the rate of return on the partner's equity. Cash Pay Back period of 1.70 which means that the business can recover its investment within a year and 7 months of continuous operation Socio-Economic Feasibility A business, in order to prosper, must realize that the community plays the most vital role in its everyday operations. It will incur revenue from its customers, but should never profit at the expense of the other. Nevertheless, Veggie Balls Production does not focus on profitability alone, but also aims to contribute to the socio-economic development of the community where they belong. The business will help the community of Barangay Sampaloc, Tanay, Rizal and its people with employment by providing decent job opportunities with respectable wages to individuals needing and willing to work, thus, helping the community alleviate unemployment. The Veggie Balls Production will also contribute to the government's revenue through taxes levied on the permits, licenses and fees necessary to start the business and also through income tax and to provide healthy products for the people. CONCLUSIONS TO FEASIBILITY STUDY Based on the facts and data presented, together with the financial and profitability ratio analyses, the proponents concluded that establishing of Veggie Balls Production in Barangay Samplaoc, Tanay, Rizal is feasible. This is also support by the computed Cash Pay Back period of 1.70 which or a recovery of its investment within a year and 7 months of continuous operation