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CHAPTER I

BACKGROUND OF THE STUDY

1.1 Introduction

Rice is one of the most important foods in the world, supplying as much as
half of the daily calories for half of the world's population. No wonder that in Asian
countries, such as Philippines, rice is so highly valued that the translation of the
word "to eat" literally means "to eat rice."
The scientific name for rice is Oryza sativa.
Rice is classified according to the degree of milling that it undergoes. This
is what makes a brown rice different than white rice. Brown rice, often referred to
as whole rice or cargo rice, is the whole grain with only its inedible outer hull
removed. Brown rice still retains its nutrient-rich bran and germ. White rice, on
the other hand, is both milled and polished, which removes the bran and germ
along with all the nutrients that reside within these important layers.
From this information, the proponents came up with the idea of using
Brown Rice, which is more nutritious than white rice, to be seasoned and sold
either for meal or snacks.
The business is concerned more on the health of the customers, which is
also the primary concern of all businesses. They make sure that the product, the
brown rice, is nutritious and clean. Moreover, they are not only concerned with the
health of the customers but also on their budget by offering a delicious food at a
very affordable price.
To this end, the proponents were encouraged to conduct a feasibility study
on The “Seasoned Rice Lumpia” business with the main ingredient of brown rice.
The proponents would also like to know if this new kind of product could still be
feasible in spite of the presence of the several businesses selling rice meal not
only in the SWU campus but in entire Cebu City.
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1.2 Statement of the Problem


The purpose of this study was to determine the feasibility of establishing
Seasoned Rice Lumpia business in Southwestern University Main Campus.
Specifically this study sought to answer the following questions:

1. Is there a demand for Seasoned Rice Lumpia in Southwestern University?


2. Will the College Students and Employees of Southwestern University patronize
the product?
3. Is the business feasible?
4. What is the payback period of the investment?

1.3 Significance of the Study

This study was conducted to gather information about the level of demand of
Seasoned Rice Lumpia at Southwestern University Main Campus. The result of
this study will be of significant value to the following:

The respondents, who will be the recipient of the product and who will
experience the benefits of eating the Seasoned Brown Rice.

The readers, who would be aware about the nutritional facts of brown rice
and who could make use of the information and use as basis for choosing what
product can provide them better satisfaction.

The proponents, who could gather relevant data and information for this
study, which may be relevant to their research undertakings. Likewise, the
proponents would learn to be resourceful in dealing with the context of the thesis
itself and develop the spirit of camaraderie among group members.

The government, who could benefit from the taxes paid by the proposed
business.
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The economy, for this could help the unemployment problem to decline.

The future entrepreneurs, who could be of great help in continuing the


social responsibility among the people of the community and who could benefit
with the profit earned by the business.

The students, who could use the results of the study for further research
undertakings.

1.4 Scope and Delimitation of the Study

This study deals on the market feasibility of establishing a Seasoned


Brown Rice business at Southwestern University Main Campus during the school
year 2010 – 2011.

Limitation of the Study

The proponents aim to make the results of the study as reliable and
accurate as possible but recognizes that there are certain limitations that could
affect the accuracy of the data obtained.

The following are the constraints and obstacles met by the proponents during
the conduct of the study:

1.) Limited time allotted for the research that must be finished in one semester
only.
2.) Conflict of the schedule of classes and work of the proponents who are all
working scholars.
3.) Limited funds to finance the study since the proponents have to rely on the
meager allowances given by their parents.
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4.) Reluctance of the respondents to answer the questionnaire for one reason or
another.
5.) Respondents may not reflect their true sentiments in answering the
questionnaire.

1.5 Research Methodology

Research Design

The descriptive method of research was used in this study. Descriptive


method is a fact finding study with adequate and accurate interpretation of the
findings. It describes what is. It describes with emphasis what actually exist such
as current conditions, practices, situations, or any phenomena. Since the present
study was concerned with the feasibility of having a Seasoned Brown Rice
business, the descriptive method of research was the most appropriate method
to use.

Method of Data Collection

The method of collecting data used was the normative survey. This is
concerned with looking into the commonality of some elements. Since the
present research is a feasibility study, the normative survey was the most
appropriate method to use in gathering data.

The proponents used the primary source of data, which is the questionnaire.
This was used because it gathers data faster than any other method. Besides,
the respondents were college students and so they are very literate. They could
read and answer the questionnaire with ease. The proponents saw to it that there
were enough items to collect data to cover all aspects of the problem and to
answer all the specific questions under the statement of the problem. Aside from
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the questionnaire, we also obtained data from secondary sources and these are
the following:
♦ Books
♦ Internet
♦ SWU Electronic Data Processing Department

Sampling Design

This research was conducted during the Second Semester of SY 2010 –


2011 where there were 6,291 college students enrolled in the different Colleges
excluding the Graduate School. Due to the limitations that were mentioned in this
study, the proponents had to used the sampling method in collecting data where
only a small portion of the population were chosen as respondents of the study
and then making a general statement about the whole thing. This market
feasibility study used the non-probability sampling design to get immediate
feedback from the respondents. In this type of sampling there is no system of
selection but only those whom the proponents met by chance are included in the
sample. The sample size for the study is 376 as computed using the Sloven
Formula.

The formula used to get the sample size is:

n= N n = sample size
1 + N (e)2 N = total population
n= 6291 e = margin of error
1 + 6291(.05)2 1 = constant number
n= 6291
1 + 6291 (.0025)
n= 6291
16.72750
n= 376
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1.6 Definition of Terms

1.) Seasoned – refers to the adding of some spices to the brown rice.
2.) Brown Rice – refer to the unhashed or nor well-milled rice.
3.) Respondents – refer to the college students of Southwestern University Main
Campus
4.) Proponents – refer to the researchers who are conducting a feasibility study r
regarding the seasoned brown rice lumpia.
5.) Spices – refer to the other ingredients that will be added in the brown rice.
6.) Brown Rice Sauce – refers to the sauce that will be use to dip the lumpia rice.
7.) Lumpia – refers to the rolled seasoned brown rice in a lumpia wrapper.
8.) Lumpia Wrapper – refers to the usual lumpia wrapper that could be bought
from the market by hundreds. The business used the large size.
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CHAPTER II

RELATED LITERATURE AND THE BUSINESS PLAN OF THE STUDY

2.1 Related Literature

Rice is the seed of the monocot 0plant Oryza sativa. As a cereal grain, it is the
most important staple food for a large part of the world's human population,
especially in East and South Asia, the Middle East, Latin America, and the West
Indies. It is the grain with the second-highest worldwide production, after maize
(corn). (wikipedia)

Since a large portion of maize crops are grown for purposes other than human
consumption, rice is the most important grain with regard to human nutrition and
caloric intake, providing more than one fifth of the calories consumed worldwide
by the human species. (wikipedia)

A traditional food plant in Africa, its cultivation declined in colonial times, but its
production has the potential to improve nutrition, boost food security, foster rural
development and support sustainable landcare. It helped Africa conquer its
famine of 1203. (wikipedia)

Rice is normally grown as an annual plant, although in tropical areas it can


survive as a perennial and can produce a ratoon crop for up to 30 years.[4] The
rice plant can grow to 1–1.8 m (3.3–5.9 ft) tall, occasionally more depending on
the variety and soil fertility. It has long, slender leaves 50–100 cm (20–39 in) long
and 2–2.5 cm (0.79–0.98 in) broad. The small wind-pollinated flowers are
produced in a branched arching to pendulous inflorescence 30–50 cm (12–20 in)
long. The edible seed is a grain (caryopsis) 5–12 mm (0.20–0.47 in) long and 2–
3 mm (0.079–0.12 in) thick. (wikipedia)
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Rice cultivation is well-suited to countries and regions with low labor costs and
high rainfall, as it is labor-intensive to cultivate and requires ample water. Rice
can be grown practically anywhere, even on a steep hill or mountain. Although its
parent species are native to South Asia and certain parts of Africa, centuries of
trade and exportation have made it commonplace in many cultures worldwide.
(wikipedia)

The traditional method for cultivating rice is flooding the fields while, or after,
setting the young seedlings. This simple method requires sound planning and
servicing of the water damming and channeling, but reduces the growth of less
robust weed and pest plants that have no submerged growth state, and deters
vermin. While flooding is not mandatory for the cultivation of rice, all other
methods of irrigation require higher effort in weed and pest control during growth
periods and a different approach for fertilizing the soil. (wikipedia)

(The name wild rice is usually used for species of the grass genus Zizania, both
wild and domesticated, although the term may also be used for primitive or
uncultivated varieties of Oryza.) (wikipedia)

Rice is a grain belonging to the grass family. The plant, which needs both warmth
and moisture to grow, measures 2-6 feet tall and has long, flat, pointy leaves and
stalk-bearing flowers which produce the grain known as rice. Rice is consumed
by nearly one-half the entire world population and many countries, like Asia, are
completely dependent on rice as a staple food. Rice is one of the few foods in the
world which is entirely non-allergenic and gluten-free. (essortment)

Everyone knows that rice is an ancient food, but only recently have we
discovered just how ancient it is. Rice was believed to have been first cultivated
in China around 6,000 years ago, but recent archaeological discoveries have
found primitive rice seeds and ancient farm tools dating back about 9,000 years.
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For the majority of its long history, rice was a staple only in Asia. Not until Arab
travelers introduced rice into ancient Greece, and Alexander the Great brought it
to India, did rice find its way to other corners of the world. Subsequently, the
Moors brought rice to Spain in the 8th century during their conquests, while the
Crusaders were responsible for bringing rice to France. Rice was introduced into
South America in the 17th century by the Spanish during their colonization of this
continent. The majority of the world's rice is grown in Asia, where it plays an
incredibly important role in their food culture. Thailand, Vietnam and China are
the three largest exporters of rice. (whfoods)

BROWN RICE

Because the outer coating of brown rice contains added minerals and protein,
brown rice is considered to hold greater food value than its white grain
counterpart. Brown rice does not get milled, thereby keeping its darker color. Like
white rice, brown rice has its husks removed during the cultivation process.
Brown rice contains 8-percent protein and is a good source of thiamine, niacin,
riboflavin, iron and calcium. Traditionally, brown rice is the least favorite of all the
rices. (essortment)

NUTRITIONAL INFORMATION

Rice remains a staple food for the majority of the world's population. More than
two-thirds of the world rely on the nutritional benefits of rice. Rice is naturally fat,
cholesterol and sodium free. It is a complex carbohydrate containing only 103
calories per one-half-cup serving. (essortment)
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Health Benefits of Eating Brown Rice

Almost everyone eat rice but should they? Can you guess which highly
processed and very popular food contributes to diabetes and, if it wasn’t fortified
with vitamins by the manufacturer, a deadly disease-Beriberi? Thats right. It’s
white rice. The vast majority of rice eaters won’t touch brown rice. They consider
it peasant’s food or animal feed. Yet, the modern health food movement has
proven unprocessed grains, including brown rice, to be healthier than their
refined counterparts. Certainly, for thousands of years everyone ate brown rice,
for the complex processing equipment needed to make white rice was invented
only in 1860, in Scotland. So what’s the reason behind white rice anyway?
Hinduism Today asked Tim O’Donnell, vice president of sales and marketing at
Lundberg Family Farms, a Californian company dedicated to organic rice. He
said the main reason is shelf life. White rice keeps much longer than brown rice
and therefore makes companies more money. Over the last century, too, people
have come to like the texture of white rice, as well as the shorter cooking time.
White rice is also cheaper, because the factories are optimized to produce it.
Switching the equipment to make brown rice costs extra money. But Lundberg’s
factory, which is set up to produce only brown rice, can match the price of white
rice, according to O’Donnell. White rice got off to a rough start when, in 1897, it
was found to be the cause of beriberi, a potentially deadly disease caused by
lack of vitamin B1, which is stripped out in the processing. Companies
responded, under government pressure, by enriching the rice. They put back the
naturally occurring vitamins, but not the nutrients called phytochemicals, which
includes the all-important fiber. Another hazard of white rice is that it can
contribute to diabetes. And, for those already diabetic, white rice is less safe than
brown rice because it breaks down into glucose more quickly than brown rice,
causing a more drastic insulin reaction. (salagram)

Here are some of the ways in which the nutrients supplied by brown rice
can make an important difference in our health:
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Brown Rice gives Manganese-Energy Production Plus Antioxidant


Protection. Just one cup of brown rice will provide you with 88.0% of the daily
value for manganese. This trace mineral helps produce energy from protein and
carbohydrates and is involved in the synthesis of fatty acids, which are important
for a healthy nervous system, and in the production of cholesterol, which is used
by the body to produce sex hormones. Manganese is also a critical component of
a very important antioxidant enzyme called superoxide dismutase. Superoxide
dismutase (SOD) is found inside the body's mitochondria (the oxygen-based
energy factories inside most of our cells) where it provides protection against
damage from the free radicals produced during energy production. (whfoods)

Women Who Eat Whole Grains Weigh Less. A study published in the
American Journal of Clinical Nutrition underscores the importance of choosing
whole grains such as brown rice rather than refined grain, i.e., white rice, to
maintain a healthy body weight. In this Harvard Medical School / Brigham and
Women's Hospital study, which collected data on over 74,000 female nurses
aged 38-63 years over a 12 year period, weight gain was inversely associated
with the intake of high-fiber, whole-grain foods but positively related to the intake
of refined-grain foods. Not only did women who consumed more whole grains
consistently weigh less than those who ate less of these fiber-rich foods, but
those consuming the most dietary fiber from whole grains were 49% less likely to
gain weight compared to those eating foods made from refined grains. (whfoods)

Brown Rice is Rich in Fiber and Selenium. For people worried about colon
cancer risk, brown rice packs a double punch by being a concentrated source of
the fiber needed to minimize the amount of time cancer-causing substances
spend in contact with colon cells, and being a very good source of selenium, a
trace mineral that has been shown to substantially reduce the risk of colon
cancer.
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In addition to supplying 14.0% of the daily value for fiber, a cup of cooked brown
rice provides 27.3% of the DV for selenium, an important benefit since many
Americans do not get enough selenium in their diets, yet this trace mineral is of
fundamental importance to human health. Selenium is an essential component of
several major metabolic pathways, including thyroid hormone metabolism,
antioxidant defense systems, and immune function. Accumulated evidence from
prospective studies, intervention trials and studies on animal models of cancer
has suggested a strong inverse correlation between selenium intake and cancer
incidence. Several mechanisms have been suggested to explain the cancer-
preventive activities of selenium. Selenium has been shown to induce DNA repair
and synthesis in damaged cells, to inhibit the proliferation of cancer cells, and to
induce their apoptosis, the self-destruct sequence the body uses to eliminate
worn out or abnormal cells.

In addition, selenium is incorporated at the active site of many proteins, including


glutathione peroxidase, which is particularly important for cancer protection. One
of the body's most powerful antioxidant enzymes, glutathione peroxidase is used
in the liver to detoxify a wide range of potentially harmful molecules. When levels
of glutathione peroxidase are too low, these toxic molecules are not disarmed
and wreak havoc on any cells with which they come in contact, damaging their
cellular DNA and promoting the development of cancer cells.

Not only does selenium play a critical role in cancer prevention as a cofactor of
glutathione peroxidase, selenium also works with vitamin E in numerous other
vital antioxidant systems throughout the body. These powerful antioxidant actions
make selenium helpful in the prevention not only of cancer, but also of heart
disease, and for decreasing the symptoms of asthma and the pain and
inflammation of rheumatoid arthritis. (whfoods)
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Lower Cholesterol with Whole Brown Rice. Here's yet another reason to rely
on whole foods, such as brown rice, for your healthy way of eating. The oil in
whole brown rice lowers cholesterol.

When Marlene Most and colleagues from Louisiana State University evaluated
the effects of rice bran and rice bran oil on cholesterol levels in volunteers with
moderately elevated cholesterol levels, they found that rice bran oil lowered their
LDL (bad) cholesterol.

The study, published in the American Journal of Clinical Nutrition, was divided
into two parts. First, 26 subjects ate a diet including 13-22g of dietary fiber each
day for three weeks, after which 13 switched to a diet that added defatted rice
bran to double their fiber intake for five weeks. In the second part of the study, a
randomized crossover trial, 14 subjects ate a diet with rice bran oil for 10 weeks.

While the diet including only defatted rice bran did not lower cholesterol, the one
containing rice bran oil lowered LDL cholesterol by 7%. Since all the diets
contained similar fatty acids, the researchers concluded that the reduction in
cholesterol seen in those receiving rice bran oil must have been due to other
constituents such as the unsaponifiable compounds found in rice bran oil. The
scientists suggest that the unsaponifiables present in rice bran oil could become
important functional foods for cardiovascular health. But why extract just one
beneficial compound from brown rice when you can reap all the cardioprotective
benefits supplied by the matrix of nutrients naturally present in this delicious
whole food? In addition to unsaponifiables, this whole grain also supplies hefty
doses of heart-healthy fiber, magnesium, and B vitamins. (whfoods)

Reduce Your Risk of Metabolic Syndrome. First we were told, "Don't eat fat,
and you'll stay trim." After following this advice only to see obesity expand to
never before seen proportions, we're told by the food gurus, "Eating fat is fine.
Shun carbohydrates to stay slim."
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In our opinion, neither piece of dietary advice is complete, accurate or likely to


help us stay slim or healthy. Just as different kinds of fats have different effects in
our bodies (e.g., saturated and trans fats are linked to increased risk for
cardiovascular disease while omega-3 fats decrease cardiovascular disease
risk), some carbohydrates, such as whole grains, are healthful while others, such
as refined grains and the foods made from them, are not.

The latest research is clearly supporting this vital distinction. Refined grains and
the foods made from them (e.g., white breads, cookies, pastries, pasta and rice)
are now being linked not only to weight gain but to increased risk of insulin
resistance (the precursor of type 2 diabetes) and the metabolic syndrome (a
strong predictor of both type 2 diabetes and cardiovascular disease), while eating
more wholegrain foods is being shown to protect against all these ills. Common
features of the metabolic syndrome include visceral obesity (the "apple shaped"
body), low levels of protective HDL cholesterol, high triglycerides, and high blood
pressure.

In one of the most recent studies, which appeared in Diabetes Care, researchers
who analyzed data on over 2,800 participants in the Framingham Offspring
Study, found that the prevalence of both insulin resistance and the metabolic
syndrome was significantly lower among those eating the most cereal fiber from
whole grains compared to those eating the least.

Prevalence of the metabolic syndrome was 38% lower among those with the
highest intake of fiber from whole grains. Conversely, study subjects whose diets
had the highest glycemic index and glycemic load, both of which are typically low
in whole foods and high in processed refined foods, were 141% more likely to
have the metabolic syndrome compared to those whose diets had the lowest
glycemic index and glycemic load. In other words, compared to those whose
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diets were primarily composed of whole high fiber foods: whole grains, legumes,
vegetables and fruits.

The researchers concluded, "Given that both a high cereal fiber content and
lower glycemic index are attributes of wholegrain foods, recommendation to
increase wholegrain intake may reduce the risk of developing the metabolic
syndrome." Our perspective at the World's Healthiest Foods is that a way of
eating that relies on the healthiest foods from all the food groups-the whole foods
that contain the healthiest fats, carbohydrates and proteins-is the most effective,
intelligent, and most enjoyable way to not only lower your risk of developing the
metabolic syndrome, but to stay slim, vital and attractive throughout a long and
healthy life. (whfoods)

Tune Down and Bone Up on Brown Rice. Magnesium, another nutrient for
which brown rice is a good source, has been shown in studies to be helpful for
reducing the severity of asthma, lowering high blood pressure, reducing the
frequency of migraine headaches, and reducing the risk of heart attack and
stroke. How does magnesium accomplish all this? Magnesium helps regulate
nerve and muscle tone by balancing the action of calcium. In many nerve cells,
magnesium serves as Nature's own calcium channel blocker, preventing calcium
from rushing into the nerve cell and activating the nerve. By blocking calcium's
entry, magnesium keeps our nerves (and the blood vessels and muscles they
ennervate) relaxed. If our diet provides us with too little magnesium, however,
calcium can gain free entry, and nerve cells can become overactivated, sending
too many messages and causing excessive contraction. Insufficient magnesium
can thus contribute to high blood pressure, muscle spasms (including spasms of
the heart muscle or the spasms of the airways symptomatic of asthma), and
migraine headaches, as well as muscle cramps, tension, soreness and fatigue.

But that's far from all magnesium does for you. Magnesium, as well as calcium, is
necessary for healthy bones. About two-thirds of the magnesium in the human
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body is found in our bones. Some helps give bones their physical structure, while
the rest is found on the surface of the bone where it is stored for the body to draw
upon as needed. Brown rice can help you keep those storage sites replenished
and ready to meet your body's needs. A cup of brown rice will give you 21.0% of
the daily value for magnesium.

In addition to the niacin it supplies, brown rice may also help raise blood levels of
nitric oxide, a small molecule known to improve blood vessel dilation and to
inhibit oxidative (free radical) damage of cholesterol and the adhesion of white
cells to the vascular wall (two important steps in the development of
atherosclerotic plaques). A study published in the British Journal of Nutrition
suggests that diets high in rice protein can help protect against atherosclerosis
by increasing blood levels of nitric oxide.

In this study, when researchers gave mice bred to be apoliprotein-E deficient a


purified diet containing either casein, the principal protein in dairy products, rice
protein or soy protein, the mice given casein developed the largest
atherosclerotic lesions. (In humans as well as animals, apolipoprotein E plays an
important role in cholesterol transport, so a deficiency of this protein increases
risk for the development of atherosclerosis.) Mice given rice or soy protein fared
much better. In trying to understand why, the researchers evaluated blood levels
of nitric oxide. Mice fed either rice or soy protein diets were found to have
increased blood levels of L-arginine (the amino acid that the body uses to
produce nitric oxide) and nitric oxide metabolites when compared to those given
casein-based feed. However, the L-arginine content of the rice and soy diets was
not high enough to explain the amount of protective benefit they conferred, so the
researchers concluded that these foods must also contain other cardioprotective
compounds. (whfoods)

A Good Source of Fiber. The health benefits of brown rice continue with its
fiber; a cup of brown rice provides 14.0% of the daily value for fiber, which has
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been shown to reduce high cholesterol levels, one more way brown rice helps
prevent atherosclerosis. Fiber also helps out by keeping blood sugar levels under
control, so brown rice is an excellent grain choice for people with diabetes. As we
mentioned above, the fiber in brown rice can also help to protect you against
colon cancer since fiber binds to cancer-causing chemicals, keeping them away
from the cells lining the colon, plus it can help normalize bowel function, reducing
constipation. (whfoods)

Help Prevent Gallstones. Eating foods high in insoluble fiber, such as brown
rice, can help women avoid gallstones, shows a study published in the American
Journal of Gastroenterology.

Studying the overall fiber intake and types of fiber consumed over a 16 year
period by over 69,000 women in the Nurses Health Study, researchers found that
those consuming the most fiber overall (both soluble and insoluble) had a 13%
lower risk of developing gallstones compared to women consuming the fewest
fiber-rich foods.

Those eating the most foods rich in insoluble fiber gained even more protection
against gallstones: a 17% lower risk compared to women eating the least. And
the protection was dose-related; a 5-gram increase in insoluble fiber intake
dropped risk dropped 10%.

How do foods rich in insoluble fiber help prevent gallstones? Researchers think
insoluble fiber not only speeds intestinal transit time (how quickly food moves
through the intestines), but reduces the secretion of bile acids (excessive
amounts contribute to gallstone formation), increases insulin sensitivity and
lowers triglycerides (blood fats). Abundant not just in brown rice but all whole
grains, insoluble fiber is also found in nuts and the edible skin of fruits and
vegetables including tomatoes, cucumbers, many squash, apples, berries, and
pears. In addition, beans provide insoluble as well as soluble fiber. (whfoods)
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What is Lumpia?

Lumpia are a type of stuffed pastry, like a spring roll. Lumpia or spring roll
originated from the Chinese, and other Asian countries have their counterparts,
like the popiah of Singapore and Malaysia. In Indonesia, it is also called lumpia.

The term lumpia derives from lunpia in the Hokkien dialect of Chinese. In
Netherlands, it's spelled loempia which is the old Indonesian spelling for lumpia
and has also become the generic name for spring roll in Dutch. A variant is the
Vietnamese lumpia, wrapped in a thinner piece of pastry, in a size close to a
spring roll though the wrapping closes the ends off completely, which is typical
for a lumpia.

The Lumpia has such enduring popularity that one can see at least one variant at
almost any Filipino feast. Its distinct taste and ease of preparation (the Shanghai
variant at least) have caused it to be one of the staple food products in local
Filipino fast food and restaurant menus (such as Jollibee, Kamayan, and Barrio
Fiesta, to name a few). It may be eaten as a snack or as part of a meal.
(en.wikipilipinas.org)
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2.2 Marketing Study

Demand of the Product

One of the most important determinant factor whether a particular product


or services will be viable, is when there is an ample demand in the market, a
place where the product or services is going to sell. The demand also determines
the financial stability of the business entity whether it will continuously operate for
many years. Southwestern University population is increasingly growing with new
colleges and courses offered due to the influx of many foreign students from
different countries moving to the university to enroll.
Since the proposed product doesn’t need viand to satisfy one’s hunger, it
is assumed that there is a high demand for the said product. As a support
analysis, a survey questionnaire sheet was used as the instrument in collecting
the necessary data to determine demand.

The Target Market

The target market of the study is in Cebu City particularly at Urgello Street
inside Southwestern University Main Campus. The primary target markets are
the university employees and college students who desire for a comfortable and
well-ventilated Seasoned Rice Lumpia Station, which is a perfect place for empty
tummy. Eating a healthy, nutritious and delicious rice lumpia that you don’t need
to buy a viand to satisfy your hunger but just a roll of lumpia to make your tummy
full.
The secondary target markets are those who desire a delivery service of
rice lumpia for parties, picnics, give aways to poor communities and for any other
purposes.
The proponents came up with the decision to have the students only as
their respondents since they are easy to approach unlike employees. And so that
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their research would be done as soon as possible for the accomplishment of their
requirement in Business Research (Busn 107).

Competitors

The proponents found that there are a lot of competitors inside the
campus. However, our lumpia is unique unlike what they were selling because it
could be eaten without viand. It’s just like two in one product that can be eaten
for snack or meal.

Price of Seasoned Rice Lumpia

Based on the costs of producing Seasoned Rice Lumpia, the proponents


shall be selling the product at Php 10.00 per piece of rice lumpia with
accompanying sauce for dipping.

Storing Facilities

The store is equipped with the best storing facilities that could preserve
the product. The proponents will be having 1 medium freezer for storing the
finished product and its ingredients. This freezer will be used 24 hours a day,
seven days a week to ensure a fresh and healthy product.

Terms of Sale

The business considers a cash basis term of sale. The management


would not allow credit since the price is very reasonable and so that liquidity
would not be a problem. There would be no unsold cooked product because the
salescrew would fry the product only when there is an order from the customer.
Uncooked items will be stored in the refrigerator to maintain the freshness and
will be sold again on the next day only since it is perishable. Clients who want to
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buy uncooked lumpia will also be entertained at a lower price which is Php 9.00
only.

Life Span of the Product

The product is only good for two days. Uncooked/unsold products which
were store in the refrigerator will be sold again only for the next day since it is
perishable. If and when there would still be unsold products during the
second day, the salescrew will then sold it for Buy 1 Take 1 in the last 60
minutes.

Expected Marketing Problems and Solution

The proponents are expecting that the market will not trust the quality of
the product in the first days of operation. As a solution, the proponents will be
promoting more customer education on the benefits of eating Brown Rice
through flyers and posters. Furthermore, the proponents will also enhance its
promotional activities inside the campus.

Channels of Distribution of Seasoned Rice Lumpia

The business is the sole manufacturer, wholesaler and retailer of the


product so that the customers will enjoy lesser prices, which is not enjoyed in
other lumpia producers.

Marketing Strategy

The proponents will be promoting the product through distribution of flyers


to the people since flyers are not expensive. This is also one of the easiest and
cheapest strategy to introduce Seasoned Rice Lumpia to those who are not
familiar and who have not heard about this kind of product.
22

The proponents are optimistic that there us an ample demand of


Seasoned Rice Lumpia in Southwestern University Main Campus and that could
enjoy a competitive marketing position.

The Needed Store Furniture and Equipment for Business Operation

Found below is the summary of the needed equipment for the business
which includes the item description, unit cost of each equipment, the needed
quantity, and the total cost of all equipment.

Table 1
Store Furniture and Fixture

Unit Cost Total cost


Item Description Quantity (pcs)
( Php Peso) ( Php Peso)
Store Cabinets P 2,000.00 5 P 10,000.00
Table P 2,000.00 1 P 2,000.00
Plastic Chair P 250.00 8 P 2,000.00
Total P 14,000.00

Table 2
Store Equipment
Item Description Unit Cost Quantity (pcs) Total Cost
(Php Peso) (Php Peso)
Refrigerator P 17, 500.00 1 P 17, 500.00
Electric Frying P 6,000.00 1 P 6,000.00
Pan
Store Counter P 5,000.00 1 P 5,000.00
Total P 28, 500.00
23

Figure 1

Seasoned Rice Lumpia


Station

2.3 Technical Study


Production Process

Figure 2
Flow Chart of Production
24

Gathering of the ingredients needed

Cooking Brown Rice

Cooking the ingredients

Mixing ingredients into the brown rice

Putting seasoned brown rice into the lumpia wrapper

Forming into lumpia rolls

Frying

Serving

1. Gathering of the ingredients

Buy all the ingredients to Carbon Market.


25

2. Cooking Brown Rice

Cook the brown rice and water together in a pot with a lid. Use the ratio of
1.5 cups of water to 1 cup rice. Normally, make 3c rice with 4.5 water for a single
batch. Set the heat maximum and bring the rice/water to a boil uncovered. Then
put the lid on the pot and reduce the heat to low/simmer. If your lid has a steam
valve, keep it closed. Let the rice simmer for 20 minutes. Turn off the heat and let
the rice sit in the covered pot for another 10 minutes. Its okay if you let the rice sit
longer than 10 minutes (20 or 30 minutes is fine too), but don't let it go any less.

3. Cooking the ingredients

Cook only those that needs to be cooked. Wash the chicken very well.
Place chicken in a big pot and let it covered with water. Bring to a boil. Lower the
heat and let it simmer until it is tender for about an hour. Remove all the resulting
scum that will rise to the top of the pot. Get the chicken out to the pot and put in
the plate. Chop the chicken in to same size. After which, boil carrots, beans and
egg for 5 – 10 minutes then after boiling, let it cold for 5 minutes then thinly
chopped.

4. Mixing ingredients into the brown rice

Mix all the ingredients except raisins, egg and cheese. Put these three
only upon in the forming of lumpia rolls.

5. Putting seasoned brown rice into the lumpia wrapper

Prepare the lumpia wrapper and then put two tablespoon of seasoned rice
lumpia into it.
26

6. Forming into lumpia rolls

Carefully fold the three edges of wrapper over the filling, starting on each
side. Use all your fingers to make sure that the filling is snugly-together, before
you start rolling. Put rolled lumpia on a serving plate.

7. Frying

Place the frying pan on the stove and turn on the heat to medium-low.
Pour ½ liter of vegetable oil in the heated pan. Wait until you see smoke in the
pan about 2 – 5 minutes. Using a spatula, put the lumpia roll in the pan and deep
fry until golden brown.

8. Serving
Serve the hot Seasoned Rice Lumpia to the customer either for dine in or
take out order together with the sauce.

Note: The salescrew would fry the Seasoned Rice Lumpia only when there is an
order from the customer.

Location of Production
27

The production process of “Seasoned Rice Lumpia” would be located at


the residence of the proprietor at 63-B Tambis Circle, Urgello St., Cebu City due
to the following reasons:
1. The location of the business has an easy accessibility to the
market, where we could buy the raw materials / ingredients for the
product.
2. The location is very accessible to public transportation so the
business could save on fuel by not purchasing it’s own transportation
equipment.

Nature of the Business

“Seasoned Rice Lumpia Station” offers dine-in and take-out order with
friendly crew and excellent customer service. The proponents look forward to
provide the best possible value to its customers who desire great tasting rice
lumpia and to provide customers with the satisfaction of receiving great value for
their money.

The Product

The ingredients are very easy to acquire and handle, you can find it in the
local market and at different department stores. The methods and procedures
are uncomplicated and are easy to perform. The equipments and facilities are
available in the market and are easy to acquire and operate. In other words, the
technical aspects or process is manageable.
The lumpia is made with very nutritious ingredients such as brown rice,
vegetables and seasonings. The business intended to provide the best possible
value to its customers who desire great tasting lumpia and to provide customers
with the satisfaction that they need.
28

Table 3

Ingredients of the product

Ingredients for Seasoned Rice Lumpia Prices Quantity Total Price


Beans Php 20/kg ½ kg 10.00
Brown rice Php 40/kg 1 kg 40.00
Carrots Php 32/kg ¼ kg 8.00
Cheese Php 52/pack 1 pack 52.00
Chicken Php 120/kg ½ kg 60.00
Egg Php 4/pc 8 pcs 32.00
Green peas Php 5/pack 2 packs 10.00
Lumpia wrapper Php 13/pack 1 pack 13.00
Magic sarap Php 3/sachet 4 pcs 12.00
Oil Php 65/kg 1 kg 65.00
Onion bulb Php 40/kg 1/8 kg 5.00
Onion leaves Php 5/bundle 1 5.00
Raisins Php 5/pack 2 10.00
Total P322

Table 4

Ingredients of the sauce

Ingredients for Sauce Prices Quantity Total Price


Ketchup Php 10 2 20
29

Mayonnaise ( per pack) Php 30 1 30


Total 50

Total Costs to produce 100 pcs of finished product 372

Divided by 100

Average Cost tp produce one rice lumpia 3.72.

Production Schedule

The days of operation should be from Monday to Friday at 8:00am to


6:00pm. The schedule of production will be done at dawn, 3:00am to 7:00am
since the product is perishable. The estimated minimum production per
production schedule is 500 pieces, a total of 2500 pieces per week. The volume
of production will depend on the demand. The production process will be at the
owner’s house because the product is home made.

Figure 3
Stall Lay-out Plan
30

2 .5 0

1 .5 0

3 .0 0

2 .5 0

STO.

T A BLE

S T A LL LA Y -O U T PLA N
S CA LE: 7 .5 S Q . M T R

Figure 4

Stall Lay-out Rear View and Front View


31

1.2 1 CABLE

G .I . RO O F

0 .8 0 0 .7 9

1.2 0 1.2 0

0 .2 0

REA R VIEW F R O N T V IE W
S C A L E : 7 .5 S Q . M T R SCALE: 7 .5 S Q . M T R

E L E V A T I O N

Figure 5

Stall Lay-out Left Side View and Right Side View


32

4 .0 1
CA BLE

G .I . R O O F

O V ERH EAD CA BIN E T O VE RH E AD CA BIN ET

3 .0 0
0 .4 5

2 .2 9
0 .4 0

LEFTSID E VIEW RIGH T SID E VIEW


SCA LE: 7 .5 S Q . M T R SCALE: 7 .5 S Q . M T R

E L E V A T I O N

Waste Disposal
33

Waste management is the collection, transport, processing, recycling or


disposal and monitoring of waste materials. The term usually relates to materials
produced by human activity, and is generally undertaken to reduce their effect on
health, the environment or aesthetics. Waste management is also carried out to
recover resources from it. Waste management can involve solid, liquid, gaseous
or radioactive substances, with different methods and fields of expertise for each.
The management will be provided with three bins: one for papers, another
for plastic waste and another for leftover food waste. These bins are provided to
ensure the proper implementation of waste segregation procedure.
Domestic waste collection services are often provided by local
government authorities. All stalls in the canteen and outside the canteen are
responsible for their own waste proper disposal as instructed by the university
management to all merchant stalls. After the waste is being segregated in to
respective types, it will be delivered now to the garbage area, where all the
garbage from the stalls is being placed. Then finally, the domestic waste
collection services provided by the government authority will collect the garbage
together with the garbage of the University.

Figure 6
Flow Chart of Proper Waste Disposal

Segrated waste Segregated waste Waste collected by


form stall in from stall in the domestic waste
canteen canteen delivered collection services
to the garbage area provided by local
government
authorities
Waste Hierarchy

Waste Hierarchy
34

The waste hierarchy refers to the “3 Rs” reduce, reuse and recycle, which
classify waste management strategies according to their desirability in terms of
waste minimization. The waste hierarchy remains the cornerstone of most waste
minimization strategies. The aim of the waste hierarchy is to extract the
maximum practical benefits from products and to generate the minimum amount
of waste.

Waste Disposal Method

Waste is segregated according to the following types: Biodegradable waste,


Recyclable waste and Non-recyclable waste.

Figure 7

Waste Segregation Method

Biodegradable Recyclable Non –


Waste Waste Recyclable

1. Biodegradable waste can be again of different types: food waste, dry leaves,
etc. for composting and reuse.
2. Recyclable waste can be of different types such as paper, wood, cotton,
reusable hardware, glass, metal scrap, etc.
3. Non-recyclable includes polythene sans plastics which cannot be treated fro
reuse.

The Needed Kitchen Tools and Equipment for Business Operation


35

Below are the summary of needed kitchen wares and utensils and also the
kitchen equipment for business operation which includes the item description,
unit cost of each item, the needed quantity, and the total cost of the said kitchen
wares and utensils.

Table 5
Kitchen Wares and Utensils
Unit Cost Total Cost
Item Description Quantity (pcs)
(Php. Peso) (Php. Peso)
Set of Knife P 999.00 1 P 999.00
Set of ladle P 450.00 1 P 450.00
Peeler P 70.00 1 P 70.00
Food container P 50.00 10 P 500.00
Cutting board P 158.00 2 P 316.00
Stainless strainer P 199.00 1 P 199.00
Plastic strainer P 150.00 1 P 150.00
Tong P 45.00 2 P 90.00
Chaffing Dish P 499.00 5 P 2495.00
Total P 5,269.00

Table 6
Kitchen Equipment
Item Description Unit Cost Quantity (pcs) Total Cost
(Php. Peso) (Php. Peso)
Rice Cooker P 852.00 2 P 1, 704.00
Frying Pan P 450.00 2 P 900.00
Electric Stove P 2028.00 2 P 4056.00
Total P 6660.00

Table 7
Utility Needed

Utilities Monthly Consumption Yearly Consumption


Water P 500.00 P 6, 000.00
Electricity P 1,000.00 P 12,000.00
Telephone P 1,000.00 P 12,000.00
Total P 2,500.00 P 30,000.00
36

2.4 Management Study

Introduction

Management is the attainment of organizational goals in an effective and


efficient manner through planning, organizing, leading and controlling
organizational resources. It plays a very significant factor in making the business
stay profitable, liquid and solvent while continuing its operations at a going
concern.

Form of Business Organization

The proponents adopted a sole proprietorship form of organization in the


line type. This is the simplest form of business organization where only one
individual owns all the assets. It is easy to form and there are less government
requirements, there is fast decision-making since only one person decides and is
suited to small business.

Name of the Proposed Business

The proposed business will be called “ Seasoned Rice Lumpia Station”

Selection

The personnel in charge of hiring will be the owner himself and will select
the applicants through his/her experience in management. The applicants must
be honest and hardworking to be more productive and effective in terms of their
performance.

Personnel Needed
37

High school or College students would be hired to work at the station on a


part-time basis. There should be no full-time employees of the station other than
the management. The owner should develop a program of orientation and
training, which all station employees must complete prior to starting work. Written
policies and procedures manual will be the foundation for that training. All station
employees will be trained to perform all customer service, quality control, and
cleanliness and sanitation procedures adopted by the station, and will know
exactly what is expected of them as an employee.

PERSONNEL JOB QUALIFICATION AND DESCRIPTION

A description of the duties and responsibilities attached to the job enables


the employment officer to determine the special qualifications, that an individual
must posses in order to do the job successfully.

The following are the Job Qualifications/ Requirements and Duties and
Responsibilities of the personnel needed in business operation:

Position: Cashier / Salescrew


Job Qualifications/Requirements:
• Female, 18-25 years old, with pleasing personality
• Must be a high school graduate
• Customer service oriented and has good interpersonal skills
• Team player, possess strong leadership, self motivated, dynamic,
confident, hardworking, honest and trustworthy
• Must be flexible and patient, and able to work under time pressure
with less supervision.
• Strong problem solving and analytical skills
• Willing to work overtime
Duties and Responsibilities
38

• She is a stall personnel who would accept payments from the


customers. At the end of her shift she should wait for the other
salescrew to come in and will remit all the cash to the manger. The
manager will check the inventory in the stall and compare it to the cash
remitted by the cashier. Two salescrews are needed by the business in
shifting schedules.

Position: Utility Boy


Job Qualification/Requirements:
• Male be at least 24-30 years old
• At least high school level
• Customer service oriented and has good interpersonal skills
• Team player, possess strong leadership, self-motivated, dynamic,
confident, hardworking, honest and trustworthy.
• Must be flexible and patient, and able to work under time pressure
with less supervision
• Strong problem solving and analytical skills
• Willing to work overtime
• Has no criminal record

Duties and Responsibilities


• He is responsible for purchasing the ingredients of the product from
Carbon Market. If there are no deliveries, he must be all around boy in
the stall. He must also help the cook in wrapping the product.

Position: Cook
Job Qualification/Requirements:
39

• Male or Female 24-35 years old


• At least high school level or high school graduate
• Knows how to cook
• Customer service oriented and has good interpersonal skills
• Team player, possess strong leadership, self-motivated, dynamic,
confident, hardworking, honest and trustworthy.
• Must be flexible and patient, and able to work under time pressure
with less supervision
• Strong problem solving and analytical skills
• Willing to work overtime
• Has no criminal record

Duties and Responsibilities


• He/she is responsible for the cooking and wrapping of the
Seasoned Rice Lumpia.

Compensation System

The owner or the manager holds office at her house; the compensation for
the cashier / salescrew will be Php 5,000 per month; for the cook and utility boy it
will be Php 3,500 per month.

Working Schedule
The store should operate from 8:00 am to 6:00 pm. Each of the 2 cashier /
salescrew should work for 5 hours each day on shifting schedule.
The cook shall work for 4 hours only everyday and that is from 3:00 a.m.
to 7:00 a.m, while the utility boy should work for 10 hours in a day.
40

The working days for all employees are Monday to Friday. No work
schedule on Saturdays and Sundays.

Table 8
Office Furniture and Fixtures
Item Description Total Price
Manager’s table and chair P 5,000.00
Office Chairs (2 x 500) P 1,000.00
Filing cabinet P 3,000.00
Safety Vault P 3,000.00
Total P 11,000.00

The manager/owner should be the one who will explain to the employees
on their duties and responsibilities. She would observe the employees first within
one month before they could be absorbed by the business. This is to be done to
make sure that the employees really posses the needed skills. The
manager/owner should obtain her licenses and permits in order to make her
business operations legal. The owner can obtain such licenses and permits
within one-month period only so that the business could start its operations
immediately.

Policies, Rules and Regulations

To help observe the code of conduct at the work place, the proponents
have listed down the policies, rules and regulations. These are simple reminders
or do’s and don’t’s, which will help establish a smooth harmonious interpersonal
relationship among the employees.
41

The following are the policies of the business:

1. All employees must be fresh, neat and clean upon entering the store and the
kitchen
2. All employees must be wearing their appropriate and complete uniform during
working hours. Their appropriate uniform includes the following: White t-shirt,
black pants, hairnet and apron. For the chef, he should wear gloves and wash
his hands before cooking.
3. The chef at the production area should maintain the cleanliness in all areas of
the kitchen. The tools and equipment should be washed before and after
every use especially the mixing plastic wares and ladle. Upon entering the
kitchen, the chef should wear the appropriate uniform stated at number 2.
4. All employees must observe proper hygiene.
5. All employees must be punctual.
6. Employees must inform the management if he/she has a plan to be absent on
a particular day so that the management could make the necessary
arrangements.
7. At the end of the day, if the inventory stock doesn’t reconcile with the cash
remitted by the cashier, the cashier should be held liable if proven guilty in an
investigation. She must pay it within three working days or such shortage
would be deducted from her salary.

Table 9
Time Table of the Project
Graphical Presentation of Pre-operation Activities

Activities 1st month 2nd month 3rd month 4th month


Purchase Equipment &
tools
42

Construction
Securing of Licenses
and permits
Hiring and Training of
Employees

Pre – operating Activities

Before the actual operation of the business, the manager / owner should
see to it that everything is under his supervision and control. He should allocate
his full time in preparing for the operation. The purchasing of equipment and tools
needed or the operation should be done first. He must choose the higher quality
brands of tools and equipment so that it could be used for long periods of time.
The graphical chart above shows that the manager / owner should purchase the
tools and equipment within one month period only. The business will have its stall
inside the Southwestern University Main Campus, the construction must be
completed within the second month of operation. This is to prepare the stall for
the operation of the business. This includes putting up business’ name in front of
the stall and putting the equipment and tools at its proper places.

The next pre-operating activity is the securing of licenses and permits that would
done on or before the third month of operation to complete since the following
offices of the government requires every new business to get the following
documents:

Department of Trade and Industry – approves the business name after complying
with the following requirements:
• Php300 registration fee
• Two copies of passport size photos of the owner
43

• Filled up registration form


• Submission of three proposed business names

Bureau of Internal Revenue – provides the tax identification number of the owner.
The BIR requires that all books of account and official receipts of the business
are duly registered with them.

Barangay Hall – issues the barangay clearance which is a certification that the
owner is a resident of the barangay. This is a requirement before any business
could obtain a license or permit to operate a business from the city government.

City Hall or Municipal Hall – the Mayor’s permit can be obtained from the city or
municipal hall. No business may start its operation unless it has been given a
mayor’s permit.

City Health Office – since the proposed business would have Seasoned Rice
Lumpia as the only product and a food product at that, all the employees are
required to obtain health certificates before the business operation could start. It
could be obtained from City Health Office.

The last pre-operating activity is the hiring and training of employees


which would take more or less than one month to complete. After the pre-
operating activities, the business could finally start its operation.

Figure 8
Organizational Chart

Owner/Manager
44

Cook Cashier /
Salescrew

Utility Boy

2.5 Financial Study

Initial Investment

The project cost is P100,000.00. the said amount would be used for
buying the equipment, materials, tools and setting up of the stall. Since the
business is a sole proprietorship, the owner or the manager shall put up the initial
investment for the business from her own savings.
On the premise that profitability means feasibility, the proponents
undertook preparation of the basic financial statements of the proposed
business.
45

In preparing the projected financial statements, the proponents are guided


by the following assumptions:

• Sales are assumed to increase by 10% every year.


• Salaries, rent expenses, contributions to SSS, PhilHealth and PAG-IBIG are
assumed to be constant for the first three years of business operation.
• Salaries are assumed to paid every 15th and 30th day of the month.
• Miscellaneous expenses are assumed to be 3% of sales. It covers all other
expenses that are indeterminable such as the number of paper bags and
plastics, sudden increase in the price of the ingredients and may others.
• Non-current assets are assumed to have 5 years of economic life and are
depreciated using the straight-line method without scrap value.

SEASONED RICE LUMPIA


PROJECTED INCOME STATEMENT
FOR 3-YEARS ENDING DECEMBER 31

Year 1 Year 2 Year 3


P900,00 P990,000 P1,089,00
Sales (sched.1) 0 0
334,80 368,280 405,10
Less: cost of sales (37.2%) 0 8

Gross Profit 565,200 621,720 683892


27,00
Less: Percentage Tax (3% of Sales) 0 29,700 32670
46

P651,22
Gross profit after Percentage Tax P538,600 P592,020 2

Less: Operating Expenses

Salaries expenses (sched. 2) P313,575 P313,575 P313,575

Dep’n expense (sched.3) 12,032 12,032 12,032


30,00 30,000 30,00
Utilities expense (sched.4) 0 0
24,379.2 24,379.2 24,379.2
Employer’s cont. to SSS (sched.5)
27,00 27,000 27,00
Miscellaneous expense (3% of sales) 0 0
36,00 36,000 36,00
Rent expense (sched. 6) 0 0
P442,96 P445,686. P448,65
Total operating expenses 8.2 2 6.2

95,613 146,333.
Net profit before tax .8 8 202,565.8
4,842 13,766. 25,641.4
Less: Income tax (sched.7) .07 76 5
P423,01
Net profit after tax P90,790 P132,567 5

SEASONED RICE LUMPIA


PROJECTED CASH FLOW STATEMENT
FOR 3-YEARS PERIOD ENDING ON DECEMBER 31

Pre-Operating Year 1 Year 2 Year 3


Cash inflow
Initial investment P100,000

Cash balances P17,294 P173,257 P355,314

Sales revenue 900,000 990,000 1,089,000

Total cash inflow P100,000 P917,294 P1,163,257 P1,444,314


47

Cash outflow
Store equipments P45,09
0
Kitchen tools and equipment 5,3
16
Office furniture and 32,3
equipments 00
Salaries expense 229,106 229,106 229,106
Utilities expense 11/12 27,500 27,500 27,500
Employer’s cont. to SSS, etc. 18,525 18,525 18,525
11/12
EVAT 11/12 62,205 68,426 75,275
Miscellaneous expense 27,000 29,700 32,670
Rent expense 36,000 36,000 36,000
Purchases 334,800 368,280 405,108
Income tax (3/4) 8,901 15,956 25,426
Payment of liabilities 14,450 17,367
Total cash outflow P82,706 P744,037 P807,943 P866,977
Net cash inflow P17,294 P173,257 P355,314 P577,337

SEASONED RICE LUMPIA


PROJECTED BALANCE SHEET
FOR 3-YEARS PERIOD

Pre-Operating Year 1 Year 2 Year 3


ASSETS
Cash P17,294 P173,257 P355,314 P577,337
Store equipments 45,090 45,090 45,090 45,090
Less: Accum. Depreciation 9,018 18,036 27,054
Kitchen tools and equipment 5,316 5,316 5,316 5,316

Less: Accum. Depreciation 1,063 2,126 11,144


Office furniture and 32,300 32,300 32,300 32,300
equipments
Less: Accum. Depreciation 6,460 12,920 19,380
Total Assets P100,000 P239,422 P404,938 P610,420

LIABILITIES
48

Acc. Cont to SSS, etc P3,328 P3,328 P3,328


Acc. Utilities expense 2,500 2,500 2,500
Acc. EVAT 5,655 6,220 6,843
Acc. Income tax 2,967 5,319 8,475
Total Liabilities P14,450 P17,367 P21,146

OWNER’S EQUITY
Capital, beg. P100,000 P100,000 P224,972 P387,571
Add. Net profit after tax 124,972 162,599 201,703
Capital, end P100,000 P224,972 P387,571 P589,274
Total liab. and owner’s equity P100,000 P239,422 P404,938 P610,420

Schedule 1. Computation of sales


Daily sales in units 500
Multiplied by 5 days x 4 weeks x 9 months 180
Projected sales in units 90,000
Multiplied by selling price 10
Projected sales in pesos in year 1 P900,000

Schedule 2. Computation of Salaries Expense


Manager/cashier (P7,000/mo. X 13 months) P91,000
Sales clerk [(P250 x 20 days x 13 months)] x 2 130,000
Cook (P3,500 x 13 months) 45,500
Night Differential (cook)
(6.5625 x 20 days x 12 mos.) 1,575
Utility man (3,500 x 13 months) 45,500
Total salaries expenses P352,000

Schedule 3. Computation of Depreciation Expenses


Total Value of Assets Php 60,160
Divided by useful life 5
Total Annual depreciation expense Php12, 032.00

Schedule 4. Computation Utilities Expense


Electricity Php 1,000.00
Telephone Php 1,000.00
Water Php 500.00
Monthly Utilities Expense Php 2,000.00
Multiplied by month of operation per year 12
Php30,000.00
49

Scheduled 5. Computation of SSS, PHILHEALTH and PAG-IBIG


contributions

SSS PHIL- PAG-IBIG TOTAL


HEALTH
Manager/cashier P504.70 P87.50 P50 P642.20
Sales clerk (2) 494.60 100.00 100 694.60
Chef 247.30 50.00 50 347.30
Utility man 247.30 50.00 50 347.50
Total monthly employer’s P2,031.60
contribution
Multiplied by months per year 12
Total annual employer’s
Contribution P24,379.20

Computation of accrued
contribution
Employer’s P2,031.60
Employees’
(less E.C. 5 X P10=50) 1,981.60

Total accrued contribution P 4,013.2

Schedule 6. Computation of Rent Expense


Rent Expense / month Php 3,000
Multiplied by number of months / year 12
Annual Rent Expense Php 36,000

Schedule 7. Computation of Income Tax


50

Net Profit before Tax Year 1 Year 2 Year 3


Php 95,613.8 Php146,333.8 Php202,565.8
Less: Exemption 50,000 50,000 50,000
Net Taxable Income Php 45,613.8 Php96,333.8 Php152,565.8

Tax due on

Php30,000 Php 2,500


(45,613.8 - 30,000) x 15% 2,342,07

Php70,000 Php8,500
(96,333.8 - 70,000) x 20% 5266,76

Php140,000 Php22,500
(152,565.8 - 140,000) x 25% 3141,45
Total Tax Due Php4,842.07 Php13,766,76 Php25,641,45

Financial Analysis:
51

Computation of Profit Ratio


Year 1 Year 2 Year 3
Net Profit Php124,972 Php162,599 Php201,703
÷ Sales 900,000 990,000 1,089,000
Profit Ratio 13.89% 16.42% 18.52%

Computation of Payback Period


Year 1 Php 124,972 100,000 ÷ 124,972 .8
Year 2 Php 162,599
Year 3 Php 201,703
Payback Period .8 year

Computation of ROI (Ratio of Investment)


Year 1 Year 2 Year 3
ROI = NPAT x 100 124,972 x 100 162,599 x 100 201,703 x 100
TI 100,000 100,000 100,000
ROI 125 163 202

Computation of IRR
Year 1 124,972 PVIF = 1 ÷ 1.99
Year 2 162,599 = .5025 year 1
Year 3201, 703 = .2525 year 2
= .1269 year 3
Total Investment = Php 100,000
Average Interest = 99%
O = ∑NPAT (PVIF)
= 124,972(.5025) + 162,599(.2525) + 201,703(.1269)
= 62,798.43 + 41.056.25 + 25,596.11
= 129,451 ÷ 100,000
O = 29,451
2.6 Socio-Economic Study

Operating a Seasoned Rice Lumpia Station may not require a lot of


employees as it can only be done a few. It doesn’t require an employee who is a
degree holder and has a high educational attainment as long as they have the
52

necessary skills on a particular job. This provides an opportunity to those who


are not given the chance to go to college due to financial crisis. This project can
also give opportunities to those who are less fortunate to avail of the food which
is seasoned rice lumpia. Seasoned Rice Lumpia has a nutritional value also
because of its main ingredient which is brown rice. This ca n help improve the
health of the people. The government will benefit from the project through taxes
paid by the entrepreneur thus enable them to finance the infrastuctures and
serve the general welfare of the people.
The future researchers are also benefited from this study. The information
and accurate data needed to establish a Seasoned Rice Lumpia Station is
already made available for them.

CHAPTER III
Findings of the Study

Data Analysis
53

Analysis is the process of breaking up the whole study into its constituent
parts of categories according to the specific questions and the statement of the
problem. This is to bring out into focus the essential features of the study.

Table 10
Respondents who usually eat Brown Rice
N = 376

Responses Frequency Percentage

YES 297 78.99%


NO 79 21.01%
Total 376 100%

Respondents were asked if they usually eat brown rice. Table 10 shows
that 78.99% or 297 respondents are eating brown rice while 21.01% or 79
respondents are not eating brown rice. This result shows that majority of the
respondents are eating brown rice.

Table 11
Frequencies of Eating Brown Rice
N = 376
54

Responses Frequency Percentage

Daily 35 9.31%
Four times a week 28 7.45%
Twice a week 84 22.34%
Others 150 39.99%
Total 297 78.99%

When asked on the frequency of times that respondents would eat brown
rice, 9.31% or 35 of the respondents answered that they eat brown rice daily
while 22.34% or 84 of the respondents would usually eat brown rice twice a
week, and only 7.45% or 28 of the respondents would eat brown rice four times a
week. There were 39.99% or 150 of the respondents answered the “others”
where most of the answers they specify is once or twice a year. The total number
of respondents in this question was only 297 because the 79 other respondents
answered “NO” to question number 1 which means they are not going to answer
question number 2 because they are not eating or they haven’t yet eaten brown
rice.
Table 12
Respondents who will eat Seasoned
Rice Lumpia
N = 376

Responses Frequency Percentage

YES 313 83.24%


NO 63 16.76%
Total 376 100%

A question was asked whether the respondents would like to eat


Seasoned Rice Lumpia that need not be paired with a viand. Table 12 shows that
about 83.24% or 313 of the respondents would like to eat the product without any
viand while only 16.76% or 63 of them wouldn’t like to eat the product. This
means that the 63 respondents will not eat the product or if they would eat, they
would like to pair it with viand.
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Table 13
Respondents who are willing to buy
Seasoned Rice Lumpia
N = 376

Responses Frequency Percentage

YES 344 91.49%


NO 32 8.51%
Total 376 100%

To determine the demand for the product, the respondents were asked if
they would buy it when made available at Southwestern University main campus.
Ninety one point forty nine percent (91.49%) or 344 would buy the product, while
8.51% or 32 of them will not buy. This proves that majority of the respondents
would patronize the product.

Table 14
Prices that respondents are willing to pay for a piece of
5” Seasoned Rice Lumpia
56

N = 376

Responses Frequency Percentage

10 – 15 280 74.47%
16 – 20 45 11.97%
21 – 25 19 5.05%
Total 344 91.49%

On the question of the prices that respondents would be willing to pay for a
piece of a 5” Seasoned Brown Rice Lumpia, table 13 shows that 74.47% or 280 of
the respondents would spend Php10 – Php15 per piece. 11.97% or 45 of the
respondents would spend Php16 – Php20 while 5.05% or only 19 of the
respondents are willing to spend at Php21-25 each. The total number of
respondents in this question was only 344 because the 32 other respondents
answered “NO” to question number 4 which means that they are not going to
answer questions 5 and 6. The responses given on the question could serve as
the basis for the pricing of the product.

Table 15
Number of Piece/s that the respondents can consume in a day
N = 376

Responses Frequency Percentage

1–2 286 76.06%


3–4 46 12.23%
5–6 12 3.19%
Total 344 91.49%

Table 15 shows the answer to the question on the number of pieces that
the respondents can consume in a day. About 76.06% or 286 of the respondents
would consume Seasoned Rice Lumpia 1 – 2 pieces per day, 12.23% or 46
respondents could consume 3 – 4 pieces while 3.19% or 12 of the respondents
could consume 5 – 6 pieces in a day. The total number of respondents in this
57

question was only 344 because the 32 other respondents answered “NO” to
question number 4 which means they are not going to answer questions 5 and 6.

CHAPTER IV

Summary, Conclusions and Recommendations

4.1 Summary of Findings


58

This study was conducted for the purpose of establishing the feasibility of
rice lumpia business at SWU Main Campus. The 6,291 college students are the
population of this study. By using the Sloven formula, 376 number sample
respondents were determined to represent the whole population.
The descriptive method of research was used to gather the needed data
and the questionnaire was used as the main instrument for collecting data. The
inquiry was undertaken during the second semester of the school year 2010 –
2011.
The results of the summary were tallied, tabulated and summarized. They
were so arranged in order to arrive at the answers to the following specific
questions of the statement of the problem:
Q1 Is there demand for rice lumpia at SWU?
Table 9 showed that 297 or 78.99% of the respondents answered Yes
when asked if they usually eat brown rice while Table 11 showed that 313 or
83.24% of the respondents would like to eat rice lumpia if made available at the
campus.
Q2 Will the students patronize the product?
Table 12 showed that 344 respondents or 91.49% would patronize the
product if made available while the price that most respondents are willing to pay
for a 5” per piece of the product is P10 to P15 as shown in Table 13.
Q3 Is the business feasible?
The projected income statement showed that the net profit after tax of the
proposed business are: P124,599, P162,599 and P201,703 for year 1, year 2
and year 3 respectively.
Q4 How long can the investor recover his investment in the proposed business?
The initial investment of P100, 000 has resulted to the net cash inflows of
P173, 257, P355, 314 and P577, 337 in year 1, year 2 and year 3 as shown in
the projected statement of cash inflow.

4.2 Conclusions
59

Based in the findings of the study, the proponents have arrived at the
following conclusions:
1. That there is demand for the Seasoned Rice Lumpia at SWU main campus
2. That the students of SWU would patronize the product
3. That the business is feasible.
4. That the owner could recover his P100, 000 investment in less than a year of
operation.

4.3 Recommendations

Due to the favorable findings, the proponents have drawn the following
recommendations to:

The investors
To invest the proposed rice lumpia business since it could provide
lucrative income to them.

The government
To give full assistance, both financial and technical to viable projects of
small business to help our economy grow further since there are employment
opportunities that could be provided by the business, notwithstanding the taxes it
can be generated.

The researchers
To make a further study to improve the product, which is lumpia since it is
fond to be a viable business.

The consumers
60

To patronize the healthy products of the small Filipino businessman to


encourage more people to venture into businessman.