Production of corn husk handicrafts in Binangonan, Rizal Rosselle B. Bengilo, Hanna Kimberly Rose D. Datol, Nina Ricci C. Lopez, Shaira Jewell F. Nadal

Feasibility Study BSBA-MM University of Rizal System, Binangonan 2017

includes bibliographical references

This feasibility study entitled Production of Corn Husk Handicrafts in Binangonan, Rizal. It would be under the management of CH Handicrafts Manufacturing. It will be in form of a partnership and is committed to producing affordable and environment-friendly handicrafts with corn husk as its raw materials. . The products will be primarily distributed and supplied to handicrafts retailers in the Binangonan Public Market. Secondarily, it will be directly purchased by household owners in the production area. The partners will be contributing an initial capital of Php60, 000.00. The initial capital will be used for the purchase of machinery and production tools and supplies, furniture and fixtures, office supplies and for other pre-operating and operating expenses. The market share of the study is determined as 100% in Binangonan, Rizal due to lack of competitiveness, with respect to the survey conducted the only handicrafts made of corn husk is only produced by CH Handicrafts Manufacturing in Binangonan, Rizal. The Target Market classified under prospective retailers is assumed with respect to the survey conducted by the researchers, And from the survey, 60% of the respondents agreed to order from the business. The demand is derived from the orders of the retailers. As surveyed they demanded a Yearly order basis with on call supply. However, among the three products Basket has the highest percentage of competitiveness with respect to the survey conducted. Also, the researchers conducted a survey to the 13 out of 40 barangays in Binangonan Rizal is due to the fact that excluded the barangays are far from the Binangonan market. However, per household the researchers assumed different age ranges from young adult to aged or elderly ( 13-19,20-30,31-40,41-50,51-65 Years old) And from the survey, it is discovered that there is the highest demand from young adult to early adult ( 20-30 Years old) . The researchers chose to get demand from ages 20-30 for simplicity purposes and to avoid the complexity of computation. It is assumed with respect to survey that 45% of the Target Market are demand of the product Basket, 33% to Picture Frame which is expected to have the highest moving of product in the month of December due to its traditional exchange gift matters, and lastly 33% of the Target Market to Flower vase that is usually sold in February. The marketing aspects are concerned with the demand, supply, and pricing of the proposed product. The researchers conducted surveys and interviews with the residents from different barangays of Binangonan, Rizal which are adjacent to the Binangonan Public market to determine the demand and supply of Handicrafts as well as other competing sources of handicrafts materials. The proposed product shall be known for its low-cost, quality baskets and could be an alternative for box's, organizers and bags. This will be offered to low-income earners who need cheap materials and handicrafts collectors. Promotional activities shall include the conduct of product quality testing in the market and distribution of pamphlets and flyers and posting of tarpaulins in public places. The channel of distribution and projected sales in peso and quantity were likewise determined. The production aspect covers the product specification, the production process, and business location layout. The production process of the product will be done using hands only. Handicrafts made of hands are likewise more appreciated and more valued. Production and cost schedule, as well as the constraints, were determined. Production shall take place five days a week including the distribution of the products to the retailers of handicrafts. The study also covers tax and legal aspects that are necessary for the establishment of the business. The proposed business shall be registered under the form of a partnership and is subjected to a tax rate of 30% of its annual income. Financial analyses and estimates of the proposed business, being the most important aspect of the study, are discussed in the financial feasibility. Assumptions as to the projected cost in the establishment and operation of the business and the projected income proving the business' profitability are also shown in this study. The study also discussed how the proposed business will contribute to the government revenues, the growth of related industries, workforce, households, and the environment. The researchers also cited possible problems which the proposed business might encounter during its operation and provided plausible recommendations to address such difficulties. And from all aspect presented by the study, the researchers concluded that the project is viable and feasible enough to be a good and positive venture to be considered as good business endeavour.