PROJECT SUMMARY
I. INTRODUCTION
With the booming economy and fast globalization it is unlikely to put up a business
without thorough planning to assess whether it is feasible and likely to become successful.
Thus, a preliminary study is very significant in establishing a business and making it into reality.
A project summary gives an overview of what the project is all about. It includes the
name of the firm or enterprise, the location, the enterprise’s logo, its vision-mission, and its
long range objectives. It also presents the basics as to the descriptive definition of the project,
the feasibility criteria, history and its highlights.
II. NAME OF THE ENTERPRISE
Every product is connected to a certain enterprise. Be it Unilever’s Sunsilk or SMC’s San
Miguel Pale Pilsen, the enterprise is the source of the product itself. As for our product, its
enterprise shall be known, a play on the word “Camote”, which is the Filipino word for Sweet
Potato, and a common Philippine expression regarding the offering of something to another
person (eg. “Rice mo te.” or “Beer mo te.”). We believe that the general public will recognize
the wordplay and become even more intrigued about our products and the enterprise itself.
III. LOGO
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The logo of CAke-MO-TE consists of the name of the enterprise itself with the rough
shape of a Sweet Potato behind the first few letters. The orange color is a nod to the color of
the kind of Sweet Potato that the company uses.
[Link]
CAke-MO-TE will have two major venues at its onset, the production area and the
distribution area. The production area will be located at New Lucban Road, Baguio City while
the distribution area will be placed at Porta Vaga Mall in Session Road.
The production site at New Lucban is a building owned by one of the proponents and
has been classified as part of the partner’s contribution. As such, no rent will be required since
the proponent owns the building itself.
The distribution site at Porta Vaga Mall was chosen because of its location in Session
Road, a veritable crossroads of business where there is heavy foot traffic throughout the year.
This will allow for maximizing of opportunities to sell our products.
V. VISION-MISSION
VISION
The enterprise envisions to become one of the best food producing companies in
the Philippines.
MISSION
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To satisfy our customers by continually producing healthier cakes and mini cakes
that are of the highest quality. Moreover, to develop and expand the business to
best satisfy relevant demands.
VI. DESCRIPTIVE DEFINITION OF THE SERVICE
1. Related National Program
a. Micro, Small, and Medium Enterprise Development (MSMED) Plan 2011-2016
It aims to promote, support, strengthen, and encourage the growth and
development of MSMEs in all productive sectors of the economy. The plan
serves as the framework for the convergence of initiatives adopted and
implemented by stakeholders towards the growth and development of the
MSME sector in the country. These outcomes were identified and defined during
the implementation of the SME Development Plan 2004-2010 and affirmed in
the consultation process that led to the finalization of the 2011-2016 MSMED
Plan.
This program affects CAke-MO-TE since it is just starting out and so it
needs a lot of help not only in their production but also on how to make the
enterprise last long in the industry and grow in the future. With the help of this
program this enterprise will be able to progress.
b. One Town, One Product (OTOP)
One Town, One Product (OTOP) is a priority program of the government
to promote entrepreneurship and create jobs. Through OTOP, local chief
executives of each city and municipality take the lead in identifying, developing,
and promoting a specific product or service, which has a competitive advantage.
OTOP can help the proponents to manufacture, offer, and market
distinctive products or services through the use of indigenous raw materials and
local skills and talents.
c. Youth Entrepreneurship Support Project
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This project under the Working Youth Center Program aims to put the
youth in the center of development. YES envisions young college students,
technical-vocational graduating students, college graduates or would be
members of the labor force to be productive, resourceful and self-reliant
entrepreneurs. Aside from being an essential WYC enabler to reinvigorate the
hopes and dreams of would be entrants to the labor force, YES is a support
program of the DOLE kabuhayan program. One objective of this program is to
motivate and mobilize college graduates to become young entrepreneurs
through a comprehensive and coherent package of entrepreneurship related
services and to intensify enterprise development and partnership between DOLE
and educational institutions in preparing college students and graduates for
business undertakings.
The proponents are young and inexperienced when it comes to opening a
new business. This program would be a great help as it would provide the
proponents with a guide, which will in turn make them more confident and
assured.
2. Affinity to Regional or Sectoral Studies
a. National Economic Research and Business Assistance Center (NERBAC)
NERBAC-Cordillera Administrative Region (CAR) is located at the
Cordillera Enterprise Development Center, PCCI along Governor pack Road,
Baguio City.
Meant to streamline business licensing and regulatory procedures, the
NERBAC office provides consultancy services to all entrepreneurs and would be
investors in the Cordillera such as cost of doing business and business
opportunities in the Region.
Enacted under Republic Act (RA) 7470, the NERBACK has been created to
enhance economic growth by providing necessary strategic economic and
business information and research assistance, thereby, expediting the process of
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business formation and encouraging the growth of entrepreneurship of the
country.
NERBAC-CAR could help the proponents through providing basic business
information on various business options that are open to them in accordance
with the government’s Investment Priorities Plan (IPP). NERBAC-CAR can also
help them facilitate the processing and documentation of all paper requirements
necessary for the establishment of the enterprise in the country.
b. DOLE Integrated Livelihood Program – Towards Community Enterprise
Development (DILP-CEP)
DILP-CED is in line with President Benigno Aquino III’s 22-Point Labor and
Employment agenda, which aims to alleviate poverty in the countryside by
generating community livelihood and employment and gears towards to overall
goal of nation building and also added the program is envisioned to assist local
community groups in order to generate income and employment through
enhancement and transformation of their livelihood projects into community
enterprises.
DILP-CAP could help the enterprise to generate income and in the
development of the enterprise through the assistance it is offering to local
community groups.
c. DOST-CAR Assistance Program
This program aims to assist MSMEs improve their productivity and
competitiveness through infusion of advance technologies, provision of limited
funds for technology acquisition, man power training, technical assistance and
consultancy services, design of functional packaging and labels and assistance in
the establishment of product standards.
Man power training for the workers and even the proponents will be a
benefit for the enterprise. Since the proponents are only just starting a business
for the first time, the program’s consultancy services would greatly contribute in
the improvement of the business. It is also an advantage for the enterprise to be
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sure that the product will be of good quality and will pass the product standards
of the program.
3. Project Potential and Proponents
CAKE-MO-TE’s no bake cake would be an addition to the food industry that will
have a great potential since food is one of the top commodities that people
prioritizes. It has the potential to establish its own place in the market and can
compete with other varieties of [Link], due to increasing health awareness of
people, many will be willing to buy the treats because of its health benefits.
Based on the results of the questionnaires, a majority of the respondents are
consumers of cakes. The enterprise has potential to successfully enter the market
because of this and because Filipinos are generally known to have a prominent
sweet tooth.
The proponents of the study are Jary Dhames B. Botigan, John Michael A.
Cabero, Evelyn Jessel T. Baraquio, Kathlene F. Barozo, Krizhel Mae N. Cupido, and
Beverly L. Vendiola.
[Link] LONG RANGE OBJECTIVE
CAKE-MO-TE’slong range objectives include the satisfaction of existing and potential
customers while providing healthy food and world-class, quality service at all times. The
enterprise aims for the business growth through its competitive strategies to be at par with
other food businesses. As it grows, the enterprise aims to increase its market share and hire
more employees. After five years of continuous operation, CAke-MO-TE sees itself opening
additional stalls in Baguio City and in nearby towns and cities. In the long run, CAKE-MO-TE aims
to establish its good reputation and be the leading company that caters a healthy no bake cake.
VIII. FEASIBILITY CRITERIA
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Every enterprise aims to have a high rate of return for their invested capital. Thus, the
main feasibility criterion used for this study is the profitability of the business. The ability to
earn profit will determine the continuous existence of the business in the succeeding years and
will serve as a drive for both the owners and employees to improve and be effective in their
responsibilities.
IX. HIGHLIGHTS OF THE PROJECT
1. History
The feasibility study started from gathering a list of ideas of the members of the
group. The proponents used uniqueness and availability as its main qualifications for
product ideas. In the end, Camote Cake was chosen because of the main product’s
notable health benefits and the fact that Camote is somewhat of a known food
product in Baguio. Also, Camote is available year round, which takes care of the
problem of seasonality.
2. Project Timetable and Status
a. Conduct of Feasibility Study (August 2014-November 2014)
Brainstorming was the first step, which resulted in the choosing of
“Camote Cake” as the product. Once this was approved, the proponents
prepared a demand questionnaire which was then floated to the target market.
After all the data was collected, the necessary computations and analysis were
performed. As soon as all the required data was completed, the chapters of the
study were finished including other necessary documents.
b. Procurement of Needed Funds (November 2014-December 2014)
The researchers will accumulate Php 360,000 for the beginning capital of
the enterprise wherein the six proponents will divide the needed beginning
capital equally to determine the contribution of each proponent. The
contribution of each proponent will then amount to Php 60,000.
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c. Processing of Legal Requirements (December 2014)
For the enterprise to operate legally, the proponents must accomplish
the requirements to put up a business that are required by government agencies
such as the Bureau of Internal Revenue (BIR) and Securities and Exchange
Commission (SEC).
d. Purchase of Tools and Implements (December 2014)
Within this month, the needed equipment, tools, and supplies that are
listed under the technical study will be purchased at the stated purchase areas.
e. Hiring of Employees (December 2014)
In the latter part of this month, the proponents will be hiring the
business’ first three employees based on the qualifications for the positions. In
the first five years, the proponents will occupy the other necessary positions so
as to cut salary costs.
f. Advertising (December 2014)
The proponents will advertise their product through flyers and word of
mouth. Social media will also be used as a facebook page will be created
advertising the product.
g. Final Preparation (December 2014)
During this period of time, the proponents will thoroughly check all the
things needed for the business such as the equipment and machineries bought
are working properly and if there are any defects immediate action will be taken
to solve the problem.
h. Start of Operation (January 2015)
After complying with all the requirements and preparing all the needed
items, the enterprise is now ready to commence with its operations.
3. Nature of the Industry
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CAKE-MO-TEis in line with food service industry, specifically bread and pastries,
which includes places, institutions, and enterprises responsible for any food
prepared outside the home.
4. Mode of Financing
The fund for the establishment of the business will come mainly from the capital
raised by the individual investors of the project.
5. Investment Cost
The total investment cost will amount to Php360,000. Details of the allocation
fund are discussed comprehensively in the financial chapter of the study.
X. MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS
1. Market Feasibility
The name of the enterprise’s main product is Camote Cake, derived from the
word “Camote”, which is the Filipino word for Sweet Potato. It is a no-bake dessert
that satisfies the same needs as other cakes, but with the added benefit of having a
main ingredient that is incredibly healthy. This product can be used for all the same
purposes as a normal cake. That is, it can be used as a dessert or simply as a solution
to sweet cravings.
The target market for this particular product is the whole population of Baguio,
regardless of age or gender. This also includes possible tourist populations. As of
now the product will only be distributed in Porta Vaga Mall in Session Road, Baguio
City.
The demand analysis revealed a sample population of 400. A corresponding
number of questionnaires were distributed, with the results being:
a. Question 1: Do you eat Cakes and/or Mini Cakes?
Yes – 387/400 (97%)
No – 13/400 (3%)
b. Question 2: How often do you buy Cakes and/or Mini Cakes?
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Cakes:
Everyday – 3/387 (.78%)
Twice a week – 9/387 (2.33%)
Once a week – 7/387 (1.81%)
Once a month – 368/387 (95.09%)
Mini Cakes:
Everyday – 22/387 (5.68%)
Twice a week – 76/387 (19.64%)
Once a week – 258/387 (66.67%)
Once a month – 31/387 (8.01%)
c. Question 3: How many do you buy?
Cakes:
1 – 292/387 (75.45%)
2 – 76/387 (19.64%)
3 – 17/387 (4.39%)
4 – 2/387 (.52%)
5 – 0/387 (0%)
Mini Cakes:
1 – 56/387 (14.47%)
2 – 77/387 (19.90%)
3 – 246/387 (63.57%)
4 – 8/387 (2.07%)
5 – 0/387 (0%)
d. Question 4: Would you be willing to eat Camote Cakes and/or Mini Camote
Cakes?
Yes – 392/400 (98%)
No – 8/400 (2%)
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e. Question 5: How often would you buy Camote Cakes and/or Mini Camote
Cakes?
Cakes:
Everyday – 2/392 (.51%)
Twice a week – 10/392 (2.55%)
Once a week – 9/392 (2.30%)
Once a month – 371/392 (94.64%)
Mini Cakes:
Everyday – 25/392 (6.38%)
Twice a week – 82/392 (20.92%)
Once a week – 253/392 (64.54%)
Once a month – 32/392 (8.16%)
f. Question 6: How many would you buy?
Cakes:
1 – 268/392 (68.37%)
2 – 63/392 (16.07%)
3 – 61/392 (15.56%)
4 – 0/392 (0%)
5 – 0/392 (0%)
Mini Cakes:
1 – 134/392 (34.18%)
2 – 45/392 (11.48%)
3 – 39/392 (9.95%)
4 – 171/392(43.62%)
5 – 3/392 (.77%)
After computing for the annual consumption and historical demand values, the
Arithmetic Geometric Curve was used to compute for the projected demand since it
was the method that yielded the least standard deviation. The actual projected
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demand was then derived from the projected demand and percentage of willingness
to consume the product.
Likewise, a supply analysis was also conducted, which resulted in having 22
respondents who each gave details on how many pieces were sold and the
percentage of change for their sales.
This resulted in the computation for historical supply, which was then used to
compute for the projected supply via the Statistical Parabolic method, since it was
the method that yielded the least standard deviation for supply. The end result was
the actual projected supply.
After that, the actual projected demand was compared with the actual projected
supply to come up with the values of unsatisfied demand, which showed the
proponents that because of the high values that came out of the computations, the
particular industry is easier to penetrate.
The price that is to be used for the whole camote cakes and mini camote cakes is
based on the prices prevailing in the market today and the cost of the goods
themselves. This will ensure that the costs will be covered while also being
competitive with other suppliers of similar products.
Factors affecting the market were also considered, along with the possible
marketing programs to be utilized. In the end, the main marketing programs chosen
were flyers, word of mouth, and social media (facebook).
2. Technical Feasibility
CAke-MO-TE is a to be distributed via a food stall in Porta Vaga Mall, Session
Road. Customers can order their cakes for takeout or dine-in, or can even reserve
orders for later consumption.
The products themselves are to be made at New Lucban Road, Baguio City. The
production area is a building owned by one of the proponents and essentially
donated as a production area to save costs.
The production process for each cake takes about 40 minutes. The raw materials
are to be purchased in Baguio. Specifically, the camote will be bought at Stall 436 of
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the Hanger Market while the other raw materials and indirect materials will be
bought at Tiong San Harrison Grocery.
The total investment capital is Php 360,000. This was divided among the six
proponents to resulted in an individual investment of Php 60,000 each.
Upon commencement, three workers will have been employed. Two cooks and
one stall personnel. Other positions will be temporarily filled by the partners to save
on costs. Production will start from 8:00 to 6:00 in the evening while the stall will
open from 10:00 to 7:00 in the evening.
Most of the equipment, furniture, fixtures, and supplies are to be bought in
Baguio, with only one item being bought online. The total machinery, tools, and
equipment amount to Php 84,326.50 while the total furniture and fixtures and total
supplies amount to Php 26,600 and Php 3,880 respectively.
Utilities will include water bills, electric bills, telecommunication bills, and cost of
refilling the gas tank. Payables for this account include the water bill, electric bill,
and telecommunication bill for the month of December.
The business will adhere strictly to the proper garbage disposal imposed by the
city management as well as to the schedule of garbage collection.
3. Financial Feasibility
The financial study is one of the more important parts of a feasibility study. It
indicated whether the enterprise can sustain the operation and gain profit using a
projection of 5 years despite the changes in economic conditions and liquidity issues.
The assumptions are used as a basis of the computations in the financial study.
The income statement will specify whether the business will accumulate income
or note. The balance sheet indicates the general financial position of the business
itself. The cash flow shows the cash balances to be used by the partners to purchase
raw materials and to pay other expenses. Finally, the notes to the financial
statement show the details on how the values in the first three were computed.
The financial analysis indicates that it will take approximately one year, one
month, and one week to recover the initial investment of the partners through net
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income. It also shows that the business itself will be highly liquid based on the
current ratio, acid test ratio, net working capital, and cash to current assets ratio. It
also confirms the business’ profitability due to its high net profit margin, gross profit
rate, return on assets, and return on equity. The effectiveness of the business’ asset
utilization was then computed for, specifically the total asset turnover rate and
current asset turnover rate. The results show that the business will be able to utilize
its assets efficiently. Finally, the leverage ratios fortified the fact that the main
source of financing for the company is its owner’s equity, as evidenced by the total
debt ratio and debt to equity ratio.
4. Socio-Economic Feasibility
This particular study is an important part of the feasibility study, even though it
is more often than not overlooked. It shows the impact that the business will have
and will want to have on the society and the economy in general.
The business will affect three main aspects: employment, the government, and
the environment. The business will provide employment for those out of work while
also contributing to the government mainly via payment of taxes, permits, and
licenses. The business’ strict adherence to waste disposal policies will also affect the
environment in a positive way, helping to preserve and protect it.
Other aspects affected by the business are the suppliers and the availability of a
unique product in the market. Suppliers of the raw materials will be positively
affected by the business as its mere existence will increase the suppliers’ sales. The
availability of a unique product in the market will allow for variety in the general
customers’ choices in food consumption. It will also allow other budding
entrepreneurs to be motivated in creating their own innovative products.
5. Management Feasibility
The proponents set requirements and qualifications for prospective employees
and these will be strictly followed since hiring the right people for the job is one
good investment. In the meantime however, only three employees are to be
employed with the other positions being filled by the partners in order to cut costs.
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There are also specific guidelines to be followed by employers and the
employees alike.
XI. GANTT CHART
Au Sept Oct Nov Dec Jan
g
A. Feasibility Study
B. Procurement of Needed Funds
C. Processing of Legal Requirements
D. Purchase of Tools and Implements
E. Hiring of Employees
F. Advertising
G. Start of Operations
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