Thesis Bachelor of Science in Business Administration University of Rizal System Tanay 2018

Includes bibliographical references

Management and Personnel Feasibility The proponents of this project are Ricky T. Banzuela, Julie Ann Q. Melo and Camille P. Montemor who will act as Capitalist/ industrialist. In addition, Engineer Roy C. Andrada is also considered as capitalist partner in the business. The business will be named Home Buddy. It was obtained from the combination of two words: "Home" which the business sells and offers different small items used at home; and "Buddy" which means friends. The business can be a buddy that will provide the things that every household need and with a tagline of Better Living Home Needs Center. The store will operate as a partnership. All partners might share liabilities and profits equally. During the pre-operating period the proponents are assigned to do different tasks and activities related to the formation of the business. Pre-operating period includes hiring of workers such as laborers, and for the accomplishment of all the things, there's a person who is assigned in distributing flyers. During the operating period, the business will start on December 2018. It is open on Tuesday to Sunday and it will operate from 9:00 am to 5:00 pm. Officers of the business and their job qualification tell that to become one of the officers of the business, the personnel must be qualified for the said position. The monthly salary of the manager/cashier is based on the current regional daily minimum wage rate of three hundred seventy eight pesos and fifty centavos; it was multiplied by twenty four (24) days since the business is open 6 days a week with the total of PhP9,084.00. While the two salespersons and the utility/ stock keeper/ inventory keeper has a daily minimum wage rate of two hundred ninety three pesos and it was also multiplied by twenty four (24) days with the total of PhP7,032.00. The net pay was the total of the monthly salary minus to the monthly contribution. Management Feasibility includes also the Project Timetable it has a Gantt Chart that show the activities from pre operating period which will start as early as September 2018 until the actual operation on December 2018. Marketing Feasibility The Home Buddy (Home Needs Center) target market will be the people living in Barangay Sampaloc, Tanay, Rizal especially the households, family tenants and student tenants. Majority of the target market is in the age bracket of 41 to 50 years old, mostly female and married, with an average monthly income of PhP5,000.00 to PhP15,000.00. The proposed business will be located at E. Rodriguez Ave. Barangay Sampaloc Tanay, Rizal. The place is very accessible to the customer because it is along to the primary road. It is located at the business center of the barangay which is good for the proposed business. The Home Buddy (Home Needs Center) is concerned with the customer needs. Based on the survey conducted, the researchers found out that there was a need to put up a Home Needs Center in Barangay Sampaloc, Tanay, Rizal. Out of 110 respondents 72% say that there is no Home Needs Center in Barangay Sampaloc and 28% say that there is. For the distribution of willing and unwilling target market 96% is willing to buy home need items while 4% is the unwilling. Project Marketing Program focuses on the objectives of the business. Marketing Feasibility also includes products and pricing. In terms of advertising strategy Home Buddy (Home Needs Center) will use tarpaulin, flyers, and brochure Home Buddy (Home Needs Center) daily projected sales are PhP25,000.00 and for annually is PhP44,285,184.00. Technical Feasibility The business will provide a Home Needs Center in Barangay Sampaloc Tanay, Rizal. This kind of business provides the customers the broadest selection of home need items, like sofa, blankets, pillows, serving utensils, rice cooker, bath towels. The primary supplier of the business will be the Divisoria Market and Tanay Public Market. In terms of service process, the operation time will be 8 hours a day from 9:00 am to 5:00 pm. The supplies from the market will be delivered at the store. The salesperson will accommodate the customers and will proceed to the cashier for the payment. Home Buddy's (Home Needs Center) expenses include office machinery and equipment with a total cost of PhP86,097.51. Depreciation expense with a total of PhP12,027.91. Rent expense with a total of PhP15,000.00 a month and PhP180,000.00 a year. The renovation expense has a total of PhP229,718.25, consumable materials with a total of PhP245.00 weekly, PhP980.00 monthly and PhP11,760.00 annually. Office supplies expense with a total of PhP1,054.00. The janitorial expense has a total of PhP888.00. Transportation expense with a total of PhP6,000.00 and utility expense of PhP1,550.00 a month and PhP18,600.00 a year. Technical Feasibility also includes machinery and equipment, plant location, plant layout, building and facilities and also all the expenses. Financial Feasibility The total capital requirement of the business is PhP3,960,339.37; the source of which will be the capital of the four partners. For the three partners the contribution is amounting to PhP792,067.87 each which has a percentage of 20% and 40% for the other partner which is amounting to PhP1,584,135.75. The total project cost of the business is PhP43,477,585.46; it is composed of permit, fees and licenses, renovation, monthly salary, machinery and equipment, furniture and fixtures, utilities, employer's contribution, advertising expense, office supplies, janitorial expense, consumable materials, merchandise inventory, transportation expense. Financial assumption were made and used as a basis for the projection of the Financial Statement. Sales Revenue increase 5% yearly while expenses increased 2% yearly. Depreciation Expense is computed using straight line method. Income Statement, Cash Flow, Balance Sheet are computed on yearly basis. The yearly assumption of sales is based on its maximum availability. The business has an average sales of PhP44,285,184.00 as of 2018, and with an income after tax of PhP604,558.31 for the year ended December 31, 2019. The business has a current ratio of 2.13:1 can be interpreted to mean that for every P1 of current liability, the firm has P2.13 current assets to pay it. This result may at times be considered as favorable and satisfactory. It indicates that Home Buddy (Home Needs Center) is able to pay their current maturing debts, with P1.13 to spare for every P1of liability they have. The debt asset ratio of the business could be interpreted to mean that for every P1 asset of the business, P0.10 was borrowed or was provided by the creditors. It is basically presents the proportion of borrowings to total assets. Owners' equity to total asset ratio of the business can be interpreted to mean that for every P1 of the owners' equity, P0.81 of the owners would receive in the event of a business- wide liquidation. Return on Investment (ROI) of 0.68 signifies that for every P1.00 of the investment, 0.68 was earned. The business has a cash payback period of 1.47. This means that the proposed business can recover the total invested capital within (1) year and six (6) months. This is favorable to the investors because it means that the business is profitable in the barangay. Socio-Economic Feasibility The proposed project focuses on the social desirability which emphasized on reasonable economic benefits on the people living in the community as well as the government as a whole. As a private entity the business aims to be known and be recognized as an institution that provides quality and affordable services to the people. Just like any other business, it is also the aim of the researchers that the business will be profitable nevertheless, Home Buddy (Home Needs Center) does not focus on the profitability alone but also aims to be socio- economic friendly as well. Conclusion to the Feasibility Study Based on projected financial statement and the financial ratio analysis, the proponents therefore conclude that establishing a Home Needs Center in Barangay Sampaloc is feasible aside from its location this will be the first home needs center in the area that is well organized and will provide a broadest selection of items.

Furthermore, the researchers believed that home needs center business will be successful also in other places that is why strategy and timing must be observed.