Chapter I

The Problem and It’s Scope

I. Introduction

Sugarcane (Saccharum) or popularly known as “Tubó” here in the Philippines, refers to

any of tall perennial grasses of the family Gramineae (grass family). Native to warm temperate to
tropical regions of Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and
measure two to six meters tall. Cane is harvested by cutting down the plant stalks, which are then
pressed several times to extract the juice. By-products obtained from sugarcane include
molasses, rum, alcohol, fuel, livestock feed, and from the stalk residue, paper and wallboard.

Sugarcane is grown under diverse agro-climatic conditions in the world. The Philippines
is also a sugar-producing country, growing it mainly on the islands of Negros, Luzon, Panay and
Mindanao. Sugarcane is not a sensitive crop and can be grown in almost all types of soil, from
sandy to clay loams and from acidic volcanic soils to calcareous sedimentary deposits. For
higher sugarcane yields, providing optimum soil environment is an essential pre-requisite since
the crop remains in the field for about 5 to 6 years due to the practice of raising several ratoon
crops.

Sugarcane juice is consumed as a beverage in many places. It is attributed as a natural

remedy to a score of problems. It is rich in antioxidants so it helps fights infections and boosts
the immunity. It's rich in iron, magnesium, calcium and other electrolytes so it's great for
dehydration. It helps cure the common cold and other infections and also fight fever as it boosts
the body's protein levels. One of the most important health benefits of sugarcane juice is that it is
a diuretic which means that it helps treat urinary tract infections, kidney stones and ensure proper
functioning of the kidneys. According to Ayurveda, sugarcane juice helps strengthen you liver
and is thus suggested as a remedy for jaundice. Jaundice is a condition where you find yellow
pigmentation of the skin and membrane due to elevated levels of a substance known as bilirubin
in the bodily fluids and is triggered by poor functioning liver. What sugarcane juice does is
replenish your body with proteins lost and nutrients that it needs to recover quickly. Another
important health benefit of sugarcane juice is due to it being rich in good kind of carbohydrates,
protein, iron, potassium and other essential nutrients that make it the ideal energy drinks.
Especially in the summer months, a glass of cold sugarcane juice can really life both your health
and depleting levels of energy. It builds up plasma and body fluids and helps counter dryness and
fatigue. Ayurveda also suggests that sugarcane juice exhibits laxative properties thereby
improving bowel movement and relieving constipation. Sugarcane juice also has alkaline
properties which mean it's good for treating acidity and stomach burns. It has a low glycemic
index (GI) so it comes highly recommended for diabetics. A study showed that drinking
sugarcane juice did not alter the blood glucose levels of diabetics drastically but it would be best
to check with the doctor before starting to drink some of this. Sugarcane juice is extremely rich
in minerals which help prevent tooth decay and bad breath. ([Link])

Tubó Ko is a partnership type of business. The partners behind the business are Mrs.
Jucile P. Gisalan, an OWF in Singapore and Ms. Nerissa Tuisa, a teacher in Banga Central
Elementary School in Bayawan City. The partners are franchising the product from the main
supplier in Manila. The name of the business was derived from the product itself which is the
“Tubó” in our native language and is also the name of the main branch where the partners
franchised their product. The product comes in small, medium and large size with corresponding
prices. The business is committed in providing quality service and satisfactory products that
fulfils the taste of the market and consumers.

Once the project is implemented, the owner and the community as a whole will enjoy
several economic and social benefits such as it will generate income to the owner and other
people who will be employed in the business. The City of Bayawan would receive income from
permits, fees, licenses and taxes to be paid by for this business. The product would be readily
available and sold at a reasonable price. It can be an added reason to encourage people to visit
Bayawan and generate income to the City.

Thus, the researchers endeavour to study the feasibility of putting up the business.

1.1 Location

Tubó Ko will be established within the vicinity of Barangay Poblacion, Bayawan City but
the partners are planning to put up a booth inside the PureGold however due to the establishment
is under construction they are still looking for the perfect location utmost near in PureGold.
1.2 Nature of the Project

Tubó Ko is a juice corner that offers mainly natural juice coming from sugarcane and can
be added with variety of flavors such as lemon, calamansi, guyabano etc. (in the long run) that
could meet the thirstiness and gives indulgence of the customers.

1.3 Mode of Financing

The capital of the project is financed by the partnership agreement of the owners of Tubó
Ko. Since the owner will franchise the booth from the main supplier which is located in Manila,
the estimated budget for this project is P500,000.00 that includes the booth, products, electricity,
and salary for the employees.

1.4 Objectives of the Study

This study is being aimed to specifically address the following objectives:

1. To present sufficient information and analysis regarding the market, technical

financial, management and organization and socio-economic implications.
2. To determine the marketability of the products to be offered by the proposed business
in chosen location.
3. To design appropriate pricing and promotional strategies for the products of the
proposed projects.
4. To determine the customer’s retention of the propose business.
5. To determine the contribution of the propose business to the society.

Statement of the Problem

This proposed project aims to determine the feasibility of establishing Tubó Ko at Bayawan City
in which seeks to answer the following questions:

1. Is the proposed project acceptable in the prospective market?

2. Is the proposed business technically feasible?
3. Is the proposed project financially viable?
4. Is the proposed business workable in the management perspective?
5. Is the proposed project can contribute meaningfully to the society?
Significance of the Study

The proposed business may have a significant outcome on the following entities:

The Community. Bayawan City will have its first juice corner using the product sugarcane as
the main ingredient of the business. The business will provide job opportunities to many
individuals especially those who love to serve real juices. The business will observe proper waste
disposal in order to maintain cleanliness and orderliness.

Future Researchers. This study will serve as groundwork for students and future researchers
that will be conducting analogous research.

Researchers. The feasibility of the proposed business will serve as compliance to the
requirement for Bachelor of Science in Business Administration and will serve as factual basis in
determining company operational viability in the area.

1.5 Scope and Limitations of the study

The proposed business is focusing on those individuals living within proper Bayawan
City specifically in Barangay Villareal, Barangay Poblacion, Barangay Tinago, Barangay Boyco,
Barangay Suba, Barangay Banga, Barangay Ubos, Barangay Suba considering ages 5 years and
above. We will also consider individuals coming from different places that will patronize our
product.

The study of the project will be conducted within the period of 6 months.

II. Methodology

This part of the project tackles about the research environment, research respondents,
research instruments and research procedure. The researcher of this study will conduct a survey
and analyse the gathered information for the factual purpose of the study.

2.1 Research Environment

Bayawan City is called as “Agricultural Capital of Negros Oriental” and is situated in the
Southwest in the Negros Oriental. Bayawan is a coastal city. It lies about 100 kilometres
Southwest of Dumaguete City, the province capital of Negros Oriental. The city has been divided
into 28 barangays it borders with Tanjay City to the East, Basay to the West, Mabinay to the
North, and Santa Catalina to the Southeast.

Bayawan City takes up 13% of the Negros Oriental Province land mass, some 699 km 2.
Of this, 15.73 km2 is the urban area containing the central business district as well as the
industrial and commercial hub. Some 102.6 km2 makes up the sub-urban, where most of the
city’s residents stay, and the agricultural development is being pursued most strongly, 580.75
km2 of the city is designated as rural area. This is where most of the agricultural is produced, and
though some areas have high trade and economic growth, most of the area is underdeveloped.

2.2 Research Respondents

Respondents of the study are the selected residents of Bayawan City which includes over-
all population, number of students and workers, income and the age.

2.3 Research Instruments

For this study, the interview-questionnaire instruments were used to achieve the main
objective of the study. The interviewees were asked to answer several questions for the
collection of factual data needed for the establishment and improvement of the proposed
business.

2.4 Research Procedure

Researchers used the Bill Gooden formula to identify the number of respondents for the
said study. Since the population is less than 50,000, the researchers used the infinite formula.

The formula for Bill Godden is:

𝑧 2 (𝑝)𝑥(1−𝑝)
Sample size 𝑆𝑆 = 𝑐2

Where:

Z = z value

P = percentage of population

C = confidence level
The Z value for 95% confidence level is 1.96; percentage level of population is 50% or 0.50;
confidence level is 5% or 0.05.

𝑧 2 (𝑝)𝑥(1 − 𝑝)
𝑆𝑆 =
𝑐2
(1.96)2 (0.50)𝑥(1 − 0.50)
𝑆𝑆 =
(0.05)2

(3.8416)(0.50)(0.50)
𝑆𝑆 =
0.0025
0.9604
𝑆𝑆 =
0.0025
𝑆𝑆 = 384.16 𝑜𝑟 385

Infinite formula follows:

𝑆𝑆
New SS =
(𝑠𝑠 − 1)
(1 + )
𝑃𝑜𝑝

Where SS = 385

Population = 33,755

385
New SS =
(385 − 1)
(1 + )
33,755

385
New SS =
(384)
(1 + )
33,755

385
New SS =
(1 + 0.01138)

385
New SS =
(1.01138)

New SS = 380.67 or 381

In the computation above, the result for the number of respondent in the proposed study
is 380.67 or 381.
 Moreover, to identify number of respondents to be given in a particular barangay, the
researchers gathered date from the Brgy. Villareal. See table for the distribution of the number of
respondents into each barangay.

Distribution of the Number of Respondents for 5 years old and above per barangay

No. of respondents to
Name of Barangays No. of Population Sum in Percentage
be distributed

Banga 7,805 23.12 93

Boyco 1,749 5.18 21

Poblacion 2,719 8.06 32

Suba 3,568 10.57 42

Tinago 12,745 37.76 151

Ubos 1,805 5.35 21

Villareal 3,364 9.97 40

TOTAL 33,755 100% 400

Table I. Number of Respondents to be distributed per barangay