CHAPTER I

PROJECT SUMMARY

Introduction

This chapter provides a brief summary about the feasibility study. The chapter presents the
name of the enterprise, the location of the business, the logo of the enterprise, the mission and vision,
the descriptive definition of the project, long term objectives, its feasibility criteria and the highlights of
this project. All these data will give important information regarding the project.

A. Name of the Enterprise

The business proponents came up with “Pinoy Crème Caramel” as the name of the enterprise.
The word “crème caramel ” is the other term for leche flan. Leche flan is the main product of our
business. However, our product is not the usual leche flan, it’s main ingredient is squash as we
promote a healthy food for everyone.

B. Location of the Enterprise

The Pinoy Crème Caramel is located at Baguio City Public Market, souvenir section. Placing the
selling site in the main hub of what is called Baguio Central Business District will enable the enterprise to
attract more customers and will prove them convenience with a feeling of safety upon their arrival and
exit.

C. Logo of the Enterprise

The company logo shows the name of the enterprise which is “Pinoy Crème caramel”. Above it
is an illustration of a leche flan in a plate which is meant to give the public an idea of what the product
would actually look like. Yellow green is used as the background of the illustration to signify the use of
the vegetable which is squash. Color orange is also used asthe background of the name of the enterprise
because it produces a warming effect and arouses cheerfulness. These are the same effects that we
would like the customer to experience whenever they buy our product.

D. Vision-Mission
Vision

We envision an enterprise that is well-known in the Philippines

for its delicious and nutritious products.

Mission

To provide a healthy delicious food that would most satisfy sweet cravings without destroying healthy
habits offered in fair Filipino price.

E. Descriptive Definition of the Project

Our business is engaged in serving a new and innovative product that will surely satisfy the healthy
cravings of the people of Baguio. The enterprise is involved in the food industry particularly in the
production of squash leche flan. It is made from baked custard topped with caramel, squash being its
mainingredient . The business aims to serve the customers a high quality product at a consumer-friendly
price.

Project Potential and Proponents

People nowadays are fond of eating sweet delicacies however, they become more conscious about what
they eat. They are looking for products that would most satisfy their cravings without affecting their
healthy lifestyles. By offering a healthy and nutritious dessert like squash leche flan people are more
willing to avail of the product since it will give the satisfaction and benefits they want in a product. Being
in the food industry is also an advantage for the enterprise since most Filipinos are food lovers and are
always willing to try something different that the market offers.

F. Project Long-Range Objectives

In ten years’ time, the enterprise expects to achieve the following:

• The enterprise intends to expand their business, opening new production areas and increasing
the number of selling sites in different places in BaguioCity.

• The enterprise will purchase additional tools and equipment just like refrigerator, mixing
machines and delivery trucks that are necessary for more production of its products.

• The enterprise intends to add more varieties of leche flan made from other fruits and vegetables
such banana and kamote.

• The enterprise intends to cater for parties and other special events such as weddings, birthdays
and reunions.

G. Feasibility Criteria

Putting up a new business which is “Pinoy Crème Caramel” that offers new innovative product
was studied by considering the market, technical, and financial feasibility of the business. The main
criterion used to evaluate the feasibility of the study is the demand for the product which supports the
possible favorable outcomes including profitability. Keys of successful business are also taken into
account which includes offering the right product, price, place or location, promotion, target market and
good management.

The proponents also take into consideration its impact on the socio-economic environment. Since
unemployment is one of the major problems of our country right now, the enterprise will provide
employment for Filipinos to help in the betterment of their lives and also to help the country in reducing
the unemployment rate.

H. Highlights of the Project

1.) History

The idea of creating squash leche flan came about during the proponent’s vacation. It happens
that the proponents are food lovers; they love to go anywhere just to try any foods that are unique for
them. Eventually, one of them came up with an idea of having a food business since food is in-demand
in the market and they discussed and planned what they are going to do about that idea. The
proponents, after discussing, came up with the idea of producing squash lecheflan which is considered
unique because it will give a new and different kind of taste to the customers and will also give benefits
to customers as it is made of a vegetable.

2.) Projected Time Table and Status

The timeline is very important in conducting feasibility study because it is one way to guide or
help the proponents in organizing and setting their activities.

a.) Making of the Feasibility Study (January 2017 – May 2017)

The proponents were given five (5) months to conduct and organize their study, to know if the
product will be successful when to introduced it in the market. The proponents will be considering the
market, technical, financial, socio-economic and management studies for this project.

b.) Procurement of Funds (April 2017 – May 2017)

The proponents were given at least two months for the procurement of funds. The collection of
funds will be done as soon as the study is feasible and completed.

c.) Renting and Improvement of the Work Place (First two weeks of June 2017)

The proponents will allot two weeks for the renting and improvement of the area for the better
operation of the business.

d.) Securing and Accomplishing Legal Requirements (First two weeks of June 2017)

The proponents will settle all the needed requirements for the business such as the Mayor’s Permit,
Registration, Business Permit, and other legal papers that are needed in order for the business to
operate well.
e.) Recruitment of the Employees (Last two weeks of June 2017)

The proponents will allot 2 weeks to hire employees needed for the business which consists of 2 sellers
and 3 bakers.

f.) Purchasing and Setting of Equipment (Last two weeks of June 2017)

The proponents will allot two weeks to purchase the equipments needed and to set-up these
equipments in the production area of the enterprise to assure that these are ready for the operation of
the business.

g.) Purchasing of Raw Materials and Other Supplies (Last week of June 2017)

The proponents will purchase all the needed raw materials and other supplies a week before the
start of the operation. This is to assure that all the things needed by the business are complete before
the operation starts.

h.) Start of Operation of the Business (July 2017)

The enterprise will start to operate in the month of July of the year 2017.

3. Nature of Industry

The enterprise is under the food industry. With the product, squash lecheflan, the new twist of
the usual leche flan with its healthy component gives a competitive advantage for the company among
other businesses offering the usual leche flan. Supply for the product is not going to be a problem for
the enterprise since the product’s ingredients are always available in the market.

4. Mode of Financing

The proponents agreed to contribute Php 100,000 each to complete the total investment
needed for the business which is Php600,000.The proponents will need some help from their family,
friends and other relatives to complete the needed fund.

5. Investment Costs

The approximate cost to start the operation of the business is Php 600,000 and each of the
proponents will contribute Php100,000 each.

I. Major Assumptions and Summary of Findings and Conclusions

1.) Market Feasibility

The market study was conducted to know if the Squash Leche Flan is saleable in the market. The
proponents conducted a demand and supply analysis by floating questionnaires to the individuals of
Baguio City who are the possible consumers of the enterprise’s product. With the results of the demand-
supply analysis, it shows that the enterprise has a high chance and opportunity for the enterprise in
entering the market.
 The proponents had also taken into consideration the factors that may affect the demand and
supply of the product and studied how to take advantage of these factors. The Squash Leche Flan will be
sold per piece at Php 20.00 for 50 grams taking into consideration the production cost and mark-up.
Through the marketing factors that was considered by the enterprise such as the price, product,
promotion and place, the proponents see that the product and the enterprise itself has the potential to
enter and be accepted by the market.

2.) Technical Feasibility

The technical feasibility of the project consists of details about the enterprise’s operation from the
specifications of the enterprise’s location and building to the process of making the product and to the
raw materials, tools, supplies, machineries and equipments which will be used by the enterprise. After
considering all these factors, the proponents decided to 250 units of Squash Leche Flan daily.

The enterprise will be open 8 hours a day from 10 am to 6 pm, and 6 days a week, from
Mondays to Saturdays. The enterprise will operate for 144 days for the first year and 365 days for the
succeeding years. The enterprise will be in the Public market of Baguio City located along Magsaysay
Avenue, right at the lower end of Session Road and behind the MaharlikaCenter near the “pasalubong”
or souvenir stalls.

3.) Financial Feasibility

The enterprise assesses the financial aspect of their business for them to know whether the business is
profitable and could operate over a long period of time.Based on the projected financial statements and
the financial ratio analysis, the enterprise will be able to operate effectively and efficiently on the years
to come as the different analysis have shown favorable results. As the sales of the product increases
every year, there is also an increasing capability of the enterprise to raise its finances.

The proponents agreed to contribute Php 166,598.89 each for the four partners and only Php83,299.34
for the two partners to complete the total investment needed for the business which is Php832,993.43.
The partners will finance the project through their savings and some help from their families and
friends.

4.) Socio-economic Feasibility

The main purpose of the proponents in making the enterprise is to generate profit, to be successful in
the world of business and to introduce to the market a new healthy food. As the enterprise was made, it
affects the city and the country socially and economically. The enterprise will be giving job opportunities
to Filipino people for the betterment of their own lives and to help the country in reducing the
unemployment rate. The enterprise also considered other aspects that will be affected through the
making of this enterprise such as the taxes, supply of commodities, demand for materials and its
environmental impact.

5.) Management Feasibility

The Pinoy Crème Caramel is in the form of partnership. The management structure of the
business will consist of three general partners, and the other partners being capital-industrial partners.
The partners will be running the business and will share their profits and losses equally. The owners set
organizational policies that should be followed by the employees for a peaceful and proper operation of
the enterprise. CHAPTER I

PROJECT SUMMARY

Introduction

This chapter provides a brief summary about the feasibility study. The chapter presents the
name of the enterprise, the location of the business, the logo of the enterprise, the mission and vision,
the descriptive definition of the project, long term objectives, its feasibility criteria and the highlights of
this project. All these data will give important information regarding the project.

A. Name of the Enterprise

The business proponents came up with “Pinoy Crème Caramel” as the name of the enterprise.
The word “crème caramel ” is the other term for leche flan. Leche flan is the main product of our
business. However, our product is not the usual leche flan, it’s main ingredient is squash as we
promote a healthy food for everyone.

B. Location of the Enterprise

The Pinoy Crème Caramel is located at Baguio City Public Market, souvenir section. Placing the
selling site in the main hub of what is called Baguio Central Business District will enable the enterprise to
attract more customers and will prove them convenience with a feeling of safety upon their arrival and
exit.

C. Logo of the Enterprise

The company logo shows the name of the enterprise which is “Pinoy Crème caramel”. Above it
is an illustration of a leche flan in a plate which is meant to give the public an idea of what the product
would actually look like. Yellow green is used as the background of the illustration to signify the use of
the vegetable which is squash. Color orange is also used asthe background of the name of the enterprise
because it produces a warming effect and arouses cheerfulness. These are the same effects that we
would like the customer to experience whenever they buy our product.
D. Vision-Mission

Vision

We envision an enterprise that is well-known in the Philippines

for its delicious and nutritious products.

Mission

To provide a healthy delicious food that would most satisfy sweet cravings without destroying healthy
habits offered in fair Filipino price.

E. Descriptive Definition of the Project

Our business is engaged in serving a new and innovative product that will surely satisfy the healthy
cravings of the people of Baguio. The enterprise is involved in the food industry particularly in the
production of squash leche flan. It is made from baked custard topped with caramel, squash being its
mainingredient . The business aims to serve the customers a high quality product at a consumer-friendly
price.

Project Potential and Proponents

People nowadays are fond of eating sweet delicacies however, they become more conscious about what
they eat. They are looking for products that would most satisfy their cravings without affecting their
healthy lifestyles. By offering a healthy and nutritious dessert like squash leche flan people are more
willing to avail of the product since it will give the satisfaction and benefits they want in a product. Being
in the food industry is also an advantage for the enterprise since most Filipinos are food lovers and are
always willing to try something different that the market offers.

F. Project Long-Range Objectives

In ten years’ time, the enterprise expects to achieve the following:

• The enterprise intends to expand their business, opening new production areas and increasing
the number of selling sites in different places in BaguioCity.

• The enterprise will purchase additional tools and equipment just like refrigerator, mixing
machines and delivery trucks that are necessary for more production of its products.

• The enterprise intends to add more varieties of leche flan made from other fruits and vegetables
such banana and kamote.

• The enterprise intends to cater for parties and other special events such as weddings, birthdays
and reunions.

G. Feasibility Criteria
 Putting up a new business which is “Pinoy Crème Caramel” that offers new innovative product
was studied by considering the market, technical, and financial feasibility of the business. The main
criterion used to evaluate the feasibility of the study is the demand for the product which supports the
possible favorable outcomes including profitability. Keys of successful business are also taken into
account which includes offering the right product, price, place or location, promotion, target market and
good management.

The proponents also take into consideration its impact on the socio-economic environment. Since
unemployment is one of the major problems of our country right now, the enterprise will provide
employment for Filipinos to help in the betterment of their lives and also to help the country in reducing
the unemployment rate.

H. Highlights of the Project

1.) History

The idea of creating squash leche flan came about during the proponent’s vacation. It happens
that the proponents are food lovers; they love to go anywhere just to try any foods that are unique for
them. Eventually, one of them came up with an idea of having a food business since food is in-demand
in the market and they discussed and planned what they are going to do about that idea. The
proponents, after discussing, came up with the idea of producing squash lecheflan which is considered
unique because it will give a new and different kind of taste to the customers and will also give benefits
to customers as it is made of a vegetable.

2.) Projected Time Table and Status

The timeline is very important in conducting feasibility study because it is one way to guide or
help the proponents in organizing and setting their activities.

a.) Making of the Feasibility Study (January 2017 – May 2017)

The proponents were given five (5) months to conduct and organize their study, to know if the
product will be successful when to introduced it in the market. The proponents will be considering the
market, technical, financial, socio-economic and management studies for this project.

b.) Procurement of Funds (April 2017 – May 2017)

The proponents were given at least two months for the procurement of funds. The collection of
funds will be done as soon as the study is feasible and completed.

c.) Renting and Improvement of the Work Place (First two weeks of June 2017)

The proponents will allot two weeks for the renting and improvement of the area for the better
operation of the business.

d.) Securing and Accomplishing Legal Requirements (First two weeks of June 2017)
The proponents will settle all the needed requirements for the business such as the Mayor’s Permit,
Registration, Business Permit, and other legal papers that are needed in order for the business to
operate well.

e.) Recruitment of the Employees (Last two weeks of June 2017)

The proponents will allot 2 weeks to hire employees needed for the business which consists of 2 sellers
and 3 bakers.

f.) Purchasing and Setting of Equipment (Last two weeks of June 2017)

The proponents will allot two weeks to purchase the equipments needed and to set-up these
equipments in the production area of the enterprise to assure that these are ready for the operation of
the business.

g.) Purchasing of Raw Materials and Other Supplies (Last week of June 2017)

The proponents will purchase all the needed raw materials and other supplies a week before the
start of the operation. This is to assure that all the things needed by the business are complete before
the operation starts.

h.) Start of Operation of the Business (July 2017)

The enterprise will start to operate in the month of July of the year 2017.

3. Nature of Industry

The enterprise is under the food industry. With the product, squash lecheflan, the new twist of
the usual leche flan with its healthy component gives a competitive advantage for the company among
other businesses offering the usual leche flan. Supply for the product is not going to be a problem for
the enterprise since the product’s ingredients are always available in the market.

4. Mode of Financing

The proponents agreed to contribute Php 100,000 each to complete the total investment
needed for the business which is Php600,000.The proponents will need some help from their family,
friends and other relatives to complete the needed fund.

5. Investment Costs

The approximate cost to start the operation of the business is Php 600,000 and each of the
proponents will contribute Php100,000 each.

I. Major Assumptions and Summary of Findings and Conclusions

1.) Market Feasibility

The market study was conducted to know if the Squash Leche Flan is saleable in the market. The
proponents conducted a demand and supply analysis by floating questionnaires to the individuals of
Baguio City who are the possible consumers of the enterprise’s product. With the results of the demand-
supply analysis, it shows that the enterprise has a high chance and opportunity for the enterprise in
entering the market.

The proponents had also taken into consideration the factors that may affect the demand and
supply of the product and studied how to take advantage of these factors. The Squash Leche Flan will be
sold per piece at Php 20.00 for 50 grams taking into consideration the production cost and mark-up.
Through the marketing factors that was considered by the enterprise such as the price, product,
promotion and place, the proponents see that the product and the enterprise itself has the potential to
enter and be accepted by the market.

2.) Technical Feasibility

The technical feasibility of the project consists of details about the enterprise’s operation from the
specifications of the enterprise’s location and building to the process of making the product and to the
raw materials, tools, supplies, machineries and equipments which will be used by the enterprise. After
considering all these factors, the proponents decided to 250 units of Squash Leche Flan daily.

The enterprise will be open 8 hours a day from 10 am to 6 pm, and 6 days a week, from
Mondays to Saturdays. The enterprise will operate for 144 days for the first year and 365 days for the
succeeding years. The enterprise will be in the Public market of Baguio City located along Magsaysay
Avenue, right at the lower end of Session Road and behind the MaharlikaCenter near the “pasalubong”
or souvenir stalls.

3.) Financial Feasibility

The enterprise assesses the financial aspect of their business for them to know whether the business is
profitable and could operate over a long period of time.Based on the projected financial statements and
the financial ratio analysis, the enterprise will be able to operate effectively and efficiently on the years
to come as the different analysis have shown favorable results. As the sales of the product increases
every year, there is also an increasing capability of the enterprise to raise its finances.

The proponents agreed to contribute Php 166,598.89 each for the four partners and only Php83,299.34
for the two partners to complete the total investment needed for the business which is Php832,993.43.
The partners will finance the project through their savings and some help from their families and
friends.

4.) Socio-economic Feasibility

The main purpose of the proponents in making the enterprise is to generate profit, to be successful in
the world of business and to introduce to the market a new healthy food. As the enterprise was made, it
affects the city and the country socially and economically. The enterprise will be giving job opportunities
to Filipino people for the betterment of their own lives and to help the country in reducing the
unemployment rate. The enterprise also considered other aspects that will be affected through the
making of this enterprise such as the taxes, supply of commodities, demand for materials and its
environmental impact.

5.) Management Feasibility

 The Pinoy Crème Caramel is in the form of partnership. The management structure of the
business will consist of three general partners, and the other partners being capital-industrial partners.
The partners will be running the business and will share their profits and losses equally. The owners set
organizational policies that should be followed by the employees for a peaceful and proper operation of
the enterprise.