A Feasibility on Establishing a Rice Retailing Business in Caloocan City PDF

Preview

Summary

......

Description

A FEASIBILITY ON ESTABLISHING A RICE RETAILING BUSINESS IN CALOOCAN CITY

Presented to: Dr. Jesus Reggie G. Rebugio

Presented by: Carl Joseph G. Ortega Grade 11 – 1ABM

i

TABLE OF CONTENTS EXECUTIVE SUMMARY BUSINESS OBJECTIVES MISSION STATEMENT VISION STATEMENT MARKET FEASIBILITY MARKETING OBJECTIVES PLAN OF DISTRIBUTION MARKET SEGMENTATION Market Growth...........................................................................4 MARKETING STRATEGY PEST ANALYSIS SWOT ANALYSIS STRATEGIC MATRIX TECHNICAL FEASIBILITY TECHNICAL OBJECTIVES BUSINESS DESCRIPTION TYPE OF BUSINESS ORGANIZATION PRODUCT DESCRIPTION LOCATION BUSINESS LOGO SUPPLIERS LEGAL REQUIREMENTS BUSINESS SCHEDULE WASTE DISPOSAL

FINACIAL FEASIBILITY MATERIALS AND EQUIPMENT Maintenance Supplies...............................................................19 Promotional Materials.............................................................19 Packaging Supplies..................................................................19 Product Supply.........................................................................20

ii

BUSINESS EXPENSES

ORGANIZATIONAL FEASIBILITY HUMAN RESOURCE MANAGEMENT Training Flowchart...................................................................23 Manpower Qualification..........................................................24 General Business Policies and Rules on Discipline.................24 Sanction....................................................................................24 Human Resource Schedule.......................................................25 Human Resource Salary...........................................................25 Employee Benifits.....................................................................26 QUALITY CONTROL SURVEY RESULTS AND DATA ANALYSIS CONCLUSION

iii

EXECUTIVE SUMMARY This feasibility study is the systematic analysis of all the factors that affect the possibility of success in this business. Other findings presented in the study become the basis in deciding whether or not the operation can be sustained. It is a type of business that determines the achievability of the product. Rice is one of the most basic and important necessity in a Filipino’s daily life. It is also considered as an important food in many Asian countries. Philippines is one of the biggest rice importers in South-east Asia. Rice is being considered as one of our staple food and comfort food. To have rice in every meal is one of the traditional we inherited from our ancestors. A Filipino can’t last a day without eating it. We are used to have it in every breakfast, lunch and dinner. Putting up a rice retailer business named “Bigas on the Go” which a wise and a good choice because of the high demand of rice here in our country. It will offer high quality but affordable varieties of rice.

The aim of the study was to look at the feasibility and potential of various techniques.

A. Business Objectives 1. To provide jobs within the community. 2. To meet the demand of the consumers. 3. To know the potential buyers. 4. To give the customer quality rice at fair competitive price. 5. To build the good relationship to the customers.

B. Mission Statement To provide quality rice and service that meets its customer’s satisfaction.

C. Vision Statement To be the number one rice retailing store our community; and to help community by giving high quality and affordable rice.

MARKET FEASIBILITY

A. Marketing Objectives 1. To determine if the proposed business is feasible in the chosen market 2. To determine the target market 3. To determine the size, nature and growth of total demand for the product. 4. To understand the market place and costumer needs and wants.

B. Plan of Distribution The “Rice on the Go” decided to distribute product through retailing in a store and delivery system, such as home delivery and free delivery to the volume costumer to increase sale. This will help the promotion and introduction of the product that will surely give immediate growth of business.

C. Market Segmentation a. Target Market Strategy “Bigas on the Go” will focus on the needs of markets especially to the households near the location. It will also focus in the area where the target market is identified. b. Market Needs The location is a good place for the business, our community is a residential and commercial area there is so many businesses and houses situated near the location as evidence many establishment are situated such as convenient store, laundry shop etc.

c. Market Trends Commercial businesses trending in this area have a strong demand due to needs of people basic needs such as food. As evidence that there is a strong demand of food in this area is that the increasing population, the increase in population means increase in demand.

d. Market Growth Commercial Businesses have a good performance in our community became stable and have a high growth of income this is because of a increasing population in the area.

D. Competitive Edge Determining the competitive edge of the business against the competitors will help the business to improve the products and services that the business offered. The business “Bigas on the Go” offers many varieties of rice. I also offer free delivery to volume costumer.

E. Marketing Strategy a. Positioning Statement “Bigas on the Go” is a rice retailer that offers many variety of rice for the costumer to have choices in buying rice. “Bigas on the Go” is the only rice retailer in the community to offer free rice delivery that helps the customers to maximize their time.

b. Pricing Strategy Setting the right price is a crucial step toward achieving the profit. “Bigas on the Go” is in business to make a profit, but figuring out what and how to price a product may not come easily.

“Bigas on the Go” depends its price with the production costs mark-up which is 20% of the supplier. c. Promotion Strategy Advertising and promotional programs are one of the essential factors that the business should take care of. The rate of the popularity of one’s firm depends on how it is introduce to the market. It is very important that the management will have effective and informative advertisement and promotional program to be able to get the attention of its potential buyers.

These are the promotional strategies that the business will be using: 1. Flyers These promotional papers will be distributed to the public to increase the popularity of the business. 2. Tarpaulin These promotional material will be use to expand the exposure of the business, it will be posted to the public area to attracts more potential customers.

F. PEST ANALYSIS

Political Environment 

Since the business will be registered, it will pay taxes to the government in order to operate legally. These taxes paid to the government will be used in building services and public infrastructure that would benefit the people.

Economic Environment 

The business is also concerned with the health of our customers. We are not just after profit, but we are also after satisfaction and safety of our customers. The business offers a good quality and healthy rice that can be eaten by our customers.



The business is also offering affordable and free delivery rice to attract customers and to be able to build customer loyalty and competitive advantage. From that, the customers will be able to experience to eat rice that is good in taste and affordable which can make them to save money.

Social Environment 

The business will also contribute the society. The Filipino people will benefit through employment. Since we need employees to fully operate the business, we will hire qualified applicants. This action will reduce the rate of unemployment in the Philippines.



The employees, by offering right salary and wages in exchange of their service, would increase the standard of living or at least satisfy their personal needs.

Technological Environment 

Use of Social Media to promote the business with the products it offers.

G. SWOT ANALYSIS Strengths 1. Accessible location

Weaknesses 1. Unrecognized brand

2. Product quality

2. Small store sized and inability to

3. A high demand

find expansion

4. Offered free delivery

3. Shop name is not well known.

5.

Uses

various

social

media

platforms to promote the business. Opportunities 1. Increasing population

Threats 1. Entry of new competitors

2. Opportunity to purchase a smaller 2. Natural calamities retailer to increase market share.

3. Price wars among key competitors 4. Farming cost increase

H. STRATEGIC MATRIX

Strengths (Internal)

Opportunities (External)

Threats (External)

Strength-Opportunities Strategies

Strengths-threats Strategies





Weaknesses (Internal)

Weaknesses-opportunities Strategies 



I.

Take advantage of the high demand for the increasing population. Take advantage of the accessible location to gain smaller retailers to increase market share.

The shop name becomes more recognizable when there are smaller retailers taking supply from us. When there is a larger population, the potential target market will also grow. The higher the target market, the more profitable the business can be. When the business earns well, it can either rent a larger space or it can expand the current rented space.



Offer good quality product with free delivery within the community.

Weaknesses-threats Strategies  

Get supplies with well-known brands. Conduct advertising and promotional programs to find expansion so even if the store is small sized and has the inability to find expansion will still recognize the business.

TECHNICAL FEASIBILITY A. Technical Objectives 1. To describe the product that will offer in the market. 2. To determine the cost and profit for each product offered. 3. To know what kind of supplies, equipment and furniture and fixture the business will use. 4. To know the overall investment cost. B. Business Description One great factor in the success of a business is its name, for it will give the firm its own personality and will be distinguished from other business. It will stand as a flag on which lies the performance of the business. With the name alone it can attract the prospect investors and clients to respond to the product. The name of the firm can give them a great impact and leaves a mark to the customers. The name of the business is “Bigas on the Go”. This will give an easy recognition because every Filipino loves to eat rice three times a day.

C. Type of Business Organization Sole Proprietorship is a type of business organization that is owned and controlled by one individual and in which there is no legal distinction between the owner and the business. The owner receives all the profits (subject to taxation) and has unlimited responsibility for all the losses and debts. Every asset of the business is owned by the proprietor.

These are the factors that I considered in choosing sole proprietorship as the form of business organization of Bigas on the Go. 1. The formation of sole proprietorship business is very easy and simple. No legal formalities are involved for setting up the business excepting a license or permission in certain cases. 2. The entrepreneur owned the controlled the business alone. The entire profit goes to his pocket. This motivates the proprietor to put his heart and soul in the business to earn more profit. 3. The entrepreneur takes all the decision of the business. 4. Each and every aspect of the business is looked after by the proprietor and the business. 5. The sole proprietorship business is undertaken on a small scale. If any change is required in the business operation, it is easy and quick to bring the changes. 6. The scale of operation of sole proprietorship is small and also the employees work under his direct supervision, the proprietor must maintain the harmonious relationships with the employees. 7. The cost of formation of a sole proprietorship is to minimal because no cost is involved in its formation excepting the license fee in certain cases. 8. The dissolution of the sole proprietorship is also very easy. Since the proprietor is the supreme authority and no regulations are applicable for closure of the business he can easily dissolve his business any time he likes.

D. Product Description Products

Description

Dinurado / Denorado

Denorado rice or Mindoro rice a type of rice popular in the Philippines because of its great characteristics, quite expensive than the other rice. This rice is tender, slightly sticky when cooked sweet and pearly white color. Good for household consumption.

Sinandomeng

This rice is also mostly bought by people because if you cooked it the grain is soft and delicious. Sweet preferred for household consumption.

Milagrosa

This type of rice is aromatic long-grain rice with almost translucent grain. It is very soft, sweet and good smell when cooked.

Angelika

This type of rice is soft, tender and sweet when coke. It is pearly white in color.

Wag-wag

Wagwag has been around since 1955 when it was first released by the Philippine Seed Board for lowland cultivation, primarily in Nueva Ecija and in flood affected inland areas of Cagayan Valley. Derived from the Tagalog word wagwagin meaning to shake off. Wagwag is a traditional rice variety that was extremely popular in the 60s and 70s for its first-class grain quality. This type of rice medium grain rice which is tender when

Glutinous (Malagkit)

cooked and having a sweet flavor. This type of rice is also called sticky rice, sweet rice or waxy rice that is mainly grown in Southeast and East Asia which has opaque grains, very low amylase content and is it sticky

when cooked Jasmin

This type of rice is a long grain variety of rice that has a nutty aroma and it is more expensive unlike to other rice.

Sta. Rita

This type of rice medium grain rice which is tender when cooked ad having a sweet flavor and delicious

E. Location

Since location is a key factor that determines the success of the business, I decided to situate at 8th Avenue West Market corner, Baltazar St, Grace Park West, Caloocan City, Metro Manila.

F. Business Logo

G. Suppliers

1. VJ RICEMILL Address: McArthur, Highway, Bocaue, Bulacan Telephone: 02 861 3773 Mobile: +63 926 285 8000(Globe/Touch Mobile) +63 946 644 4443(Smart/Talk 'n Text) Email: [email protected] 2. Primavera Rice Mill Address: #61 J. Chanjungco Street Corner Eagle Street, New Marikina Subdivision, Marikina City 1800 Telephone: (02) 646 6397 3. Inandan Rice Mill Address: #18 Provincial Road Rosario, Cavite City Telephone: (046) 321-3622

H. Legal Requirements

1. Business Name Registration (DTI) 2. Mayors Permit Requirements: Business Name Certificate (DTI) Sketch of the business location Homeowner’s Clearance Fire Safety Permit Community Tax Certificate Barangay Clearance Electrical Inspection Clearance Sanitary Permit Lease Contract 2 pcs. 2x2 colored ID Picture 3. Tax Identification Number (TIN) Requirements: Application Form 1901 Mayors Permit Registration Fee

Validity 5 Years 1 Year

Fee Php300.00

300.00 25.00 400.00 1,000.00 100.00 20.00

500.00

4. Social Security System (SSS) Certificate Requirements: Accomplished R1 Form Business Name Certificate (DTI) Mayor’s Permit 5. Philippine Health Insurance Corp. (PhilHealth) Membership 6. Pag-Ibig Membership Total

Php2,645.00

I. Business Schedule Business Hour

9am-7pm

Open Daily

J. Waste Disposal There will be a garbage bag inside the trash bin and it will dispose when it already full. The garbage will be collected by the garbage track collector every monday, tueday and friday. The empty sacks of rice will be sold for Php 5.00 each.

FINANCIAL FEASIBILITY

A. Materials and Equipment

a) Store Equipments Unit Equipment

Quantity

Price per unit

Total

Wall Fan Weighing Scale Exhaust Fan Delivery Vehicle Motor (already have) Furniture and Fixture Office Desk Office Chair Filling Cabinet

2 1 1

Php 600.00 750.00 800.00 TOTAL

-

-

1 1 1

Php 1,200.00 750.00 800.00 Php 2,750.00 -

Php 1,800.00 1,000.00 1,200.00 TOTAL

Php 1,800.00 1,000.00 1,200.00 Php 4,000.00

b) Renovation / Building Materials Unit Plywood (Rice Divider and Storage Room) Fluorescent Lamp 21 inches 36 watts Bulb 25 watts Paint (Latex, white, 4 Liters) Paint (Enamel, white 4 Liters) Lumber 2x2x12 inches Nail #1 Nail #2 Nail #3 Labor (per day)

c) Office Supplies

Quantity 15 2 2 1

Price per unit Php 400.00 699.00 100.00 659.75

Total Php 4,000.00 1,000.00 200.00 500.00

1

679.75

500.00

30 2 Kilos 1 Kilo 2 Kilos 5 Days

230.00 80.00 85.00 90.00 400.00 TOTAL

6,000.00 100.00 60.00 140.00 2,000.00 Php 14,500.00

Unit Calculator Logbook Ball Pen Stapler Staple Wire Folder Envelop

Quantity 2 2 1 Box 1 5 Boxes 10 10

Price per Unit Php150.00 75.00 100.00 150.00 10.00 5.00 5.00 TOTAL

Total Php300.00 150.00 100.00 150.00 50.00 50.00 50.00 Php 850.00

d) Maintenance Supply Unit Dustpan Broom Trash Bin Rugs Doormat Dipper Pail

Quantity 2 2 1 10 2 1 1

Price per Unit Php 75.00 100.00 250.00 1.00 25.00 25.00 100.00 TOTAL

Total Php 150.00 200.00 250.00 10.00 50.00 25.00 100.00 Php 785.00

e) Promotional Materials

Signboard Tarpaulin Flyers

Quantity 1 4 1,000

Price per Unit Php 1,500.00 250.00 0.50 TOTAL

Total Php 1,500.00 1,000.00 500.00 Php 3,000.00

f) Packaging Supplies Size Small 7x20 Medium 10x16 Large 14x20

Quantity

Price per Unit Php 15.00 20.00 35.00 TOTAL

20 Packs (100/pack) 20 Packs (100/pack) 10 Packs (100/pack)

Total Php 300.00 400.00 350.00 Php 1,050.00

g) Product Supply Brand Denurado Special Denurado Sinandomeng Premium Sinandomeng

No. of Sacks 18 5 15 5

Price per Sack Php 1,750.00 2,000.00 1,500.00 1,600.00

Total Php 4,000.00 10,000.00 22,500.00 8,000.00

Milagrosa

10

1,250.00

10,250.00

Angelika Super Angelika Wag-wag Jasmin Glutinous (Malagkit)

12 5 15 8 1

1,500.00 1,650.00 1,250.00 2,350.00 1,800.00 TOTAL

18,000.00 8,250.00 18,750.00 18,800.00 1,800.00 Php 102,300.00

B. Business Expenses

a) Utilities Expense Items

Provider

Electricity Water Telephone Load

Meralco Maynilad PLDT Globe TOTAL

Monthly Consumption Php 400.00 300.00 1,000.00 300.00 Php 2,000.00

b) Rental Expense Monthly Php 5,000.00

Rent

c) Gas and Oil Expense

Gas and Oil

Weekly Consumption Php 500.00

ORGANIZAT...