OCCIDENTAL MINDORO STATE COLLEGE

CHAPTER I INTRODUCTION

The proponents decided to introduce the products came from cassava which will be establish at Brgy. 5 Paluan Occidental Mindoro. This chapter is about the history of cassava. Which is the third largest sources of food carbohydrates, the cassava is a substitute food in rice. Many Filipino farmers are engaged in planting of cassava because in our country we only had two kinds of climates that are why cassava is easy to plant here in our country.

A. Background of the Study Casava also known as manloc, vuca, balinghoy, mogomandiola,

kamotengkahoy, and manloc root, a woody shrub of the euphorbiaceous (spurge family) native to South America, is extensively cultivated as an annual crop in tropical and subtropical regions for its edible starchy. Tuberous root a major source of carbohydrates. Cassava is the third largest sources of food carbohydrates in the topping. After rice and maize.Casava is a major staple food in the developing world, providing a basic diet for over half a billion people. It is one of the most drought-tolerant crops, capable of growing on marginal carbohydrates. Cassava is classified as sweet or bitter. Farmers often prefer better varieties because they deter pests, animals and thieves. The more toxic varieties of cassava are a fall-black resource (a food security crop) in times of famine in some places.

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Cassava is also often portrayed in indigenous art. In fact, many, if not most traditional dishes are made with cassava or maize. Today cassava is among the most important crops in the tropical world, although it is only little to known or used in Western Countries. Generally, the people of Paluan Occidental Mindoro are engaged in farming. The said place is a suitable location of Cassava Puto Infinity Production came from the owners because there is no existing business which offer same product in the area. This business when establish will sell a delicious cassava puto. Looking forwardthat the proposed business will be profitable and will have a long lasting operation, which it will be established at Brgy.5 Paluan Occidental Mindoro. The proponents decided to have a partnership as their business ownership through the combination of skills and shared capitals of partners, they can work together for the success of the business.

B. Objective of the Study General Objective The proposed business has a general objective which is to find out the study and viability of establishing a Homemade Cassava Puto in Paluan Occidental Mindoro. Specific Objective 1. To determine the financial requirements and to start and sustain the proposed project for its point of viability.

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2. To measure the demand and market ability of product in the proposed location. 3. To identify the strength, weaknesses. Opportunities and threats that will have to be considered for an actual implementation of the proposed project. 4. To determine the profitability of the proposed project. 5. To determine the target market of the proposed business. C. Socio Economic Desirability This feasibility is classified as a private project and the business beneficial to different sector of the society such as the following: Owners This study will them by the way of gaining profits and also by gaining more knowledge regarding the preparation and handling of this kind of business. Employee This business will help them in their financial needs and also to enhance their ability in this kind of work. Customers It will surely help them to buy a clean delicious homemade product easily and they do not need to have a large amount of money just to buy and eat a delicious and nutritious product. Government This sector will gain benefit through this study because on the annual amount of taxes that will be paid by the owners.

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Researchers These studies help them by knowing how to prepare a business plan and help for them to be aware on the business when they engaged on it. D. Sources of Data There are a lot of references being used in gathering data in this business, these are internet books and to conduct an interview to the people who seek to be our target market and also ask some knowledgeable person in terms of entrepreneurship. E. Definition of Terms Cassava It is a sub-species cultivated as an annual crop in tropical and subtropical regions It is the third largest source of good carbohydrates in the tropics after rice. Competitor One who seeks what another seeks or claims what another claim, one that complete arrivals. It is the owner of the business where in them all ways compete to each other just to be a stronger one. Market Trend It refers the demand and supply of the product. Production It is defined as the act of manufacturing mining or growing a commodity usually in bulk for sale.

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Profit Acquisition beyond expenditure excess of value received for producing, keeping or selling over cost, hence, pecuniary gain in any transaction or occupation involvement as a profit on the sales of goods. Steamer machine It is used to cooked the cassava puto. Ladle It is used for mixing of cassava and sugar.

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CHAPTER II MARKETING STRATEGY

This chapter contains the marketing aspect of the proposed business if it is profitable and viable in the community. it contains the projected demand for next five(5) years and projected supply for five(5) years will also be discussed. The demand and supply will be analyzed in this chapter including the graphical presentation. It also contains the marketing plan strategies like the promotion, distribution and pricing strategies. The customer will be the key factor to achieve the objective of the organization marketing system of business activities designed to plan, price, promote and distribute wants satisfying goods u services to present to potential customer. The place promotion and price will be discussed using the quantitative and qualitative data which is derived from survey, interviews, questionnaires and data coming from the citizens of Brgy.5 Paluan Occidental Mindoro. A. Market Description According to the survey there is a greater demand of the cassava products, because there is a large plantation of cassava in our country especially here in our town. Cassava puto infinity production will offer different sizes of cassava puto which are in demand in the target location. The proponent assumed that the demand and supply will increased after the project has been introduced to the public. The target market is defined

by the customers needs (7-60 years old) who create the market attractiveness of customers based on the marketing strategies that will be profitable and competitive.

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Table 1 Product Price Description Cassava Puto Small Medium Unit Price Php. 5.00 Php. 10.00

The table1 shows the price of the product. Which is the unit price of small cassava puto is Php 5.00 and the medium is Php 10.00 .

B. Demand Analysis According to the gathered information, the total population of Barangay 5 including the students from central school is 3,510. The proponents conducted a survey among 359 respondents to get their opinion regarding by a times who avail the product annually. These 359 respondents came from the present population of barangay 5, Paluan Occidental Mindoro using the sloven formula. The survey was distributed among the entire students of Paluan for the proponents to be able to know the respondents perception and preferences regarding the proposed business.

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The total population ofBRGY.5 will increased 2.1% multiplied by the market acceptability which is obtained by getting the percentage of respondents who are willing to eat Cassava puto with 90% and multiplied to the fixed agreement by 7 times who avail the products annually that is based on the survey that the proponents distributed.

SLOVEN FORMULA n=N 1+Ne Where: N= the number of people who quality in the area of the study. e= margin of error which is 5% n= number of needed respondents. Solution: n= 3.510/1+3.510 (.05) n= 3.510/1+3.510 (.0025) n= 3.510/1+8.78 n= 3.510/9.78 n= 358.79 or 359 The computation above shows how to get the total numbers of cassava puto respondents to know their opinion regarding the proposed business.

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Table 2 Projected Demand Year Target population Market acceptability percentage 90 90 90 90 90 Fixed of agreement Annual projected demand 22,441 22,775 23,115 23,468 23,827

2013 2014 2015 2016 2017

3,562 3,615 3,669 3,725 3,782

7 7 7 7 7

Table 2 shows the projected demand for the next five years for the business operation. To get the projected demand for 2013-2017 the proponents used the population sampling method. Because the proponents decided to establish our Business Firm, at 2015 Because this is our target year to start our business. Population projection = Total population (1+growth rate/1000)

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Figure 1 Graph of Projected Demand

Annual Projected Demand

24000

23500

23000 Annual Projected Demand 22500

22000

21500 2013 2014 2015 2016 2017

C. Supply Analysis The cassava puto infinity production will be the first that will offer this kind of product in the municipality of Paluan. The proponents believe that the whole market will be their customers and because of the carbohydrates that their product gives it may be substitute by rice. It is also providing a basic diet over a half a million people, they assure that the business is a profitable one.

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The supply of cassava of the cassava puto infinity production came from BRGY. 1, Paluan Occidental Mindoro which is owned by Mr. Nestor Tinaliga and if there has a shortage of raw materials the proponents decided to have an alternative supplier which came from BRGY. AlipaoyPaluan Occidental Mindoro owned by Mrs. Blesilda Zapata. Table 3 Projected Supply

Year

Target population

Market acceptability

Fixed of agreement

Annual projected supply 21,194 21,509 21,831 22,164 22,503

2013 2014 2015 2016 2017

3,562 3,615 3,669 3,725 3,782

85 85 85 85 85

7 7 7 7 7

Table 3 shows the projected supply for the next five (5) years of Cassava Puto Infinity Production.

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Figure 2 Graph of Projected Supply

Annual Projected Supply

23000

22500

22000 Annual Projected Supply 21500

21000

20500 2013 2014 2015 2016 2017

D. Demand and Supply Analysis We all know that there are people who do not eat rice in the everyday meal specially during breakfast. Thats why many people are suffer from stomach ache that can cause ulcer. But once they eat substitute food like cassava which is also give carbohydrates like rice they cant suffer from ulcer. This is one major factor why the proponents decided to put this kind of business in the Municipality of Paluan. The gap of the unsatisfied market is obtained by subtracting the projected demand to the projected supply which shows the available market for the cassava.

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Table 4 Demand and Supply Analysis

Year 2013 2014 2015 2016 2017

Demand 22,441 22,775 23,115 23,468 23,827

Supply 21,194 21,509 21,831 22,164 22,503

Demand and Supply Gap 1,247 1,266 1,284 1,304 1,324

Table 4 shows the sensitivity analysis of our projected demand and supply gap.

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Figure 3 Graph Demand and Supply Analysis

24500 24000 23500 23000 22500 22000 21500 21000 20500 20000 19500 2013 2014 2015 2016 2017 Pojected Demand Projected Supply

The figure 3 shows the demand and supply analysis for cassava puto. The graph shows that the demand is higher than the supply. This mean that the cassava puto will have a continuous demand in the market it shows that the demand is directly proportional with supply. E. Marketing Strategies Every business must determine their market share that will serve as basis of marketing strategies of the establishment. The proponents consider the 4Ps of marketing mix which are the product, price, place, and promotion. It will define the extent of the market that we need to satisfy. The proponents decided to offer a small and medium size of their products.

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1. Product Strategies People today are fun of eating kakanin this will serve as the competitive advantage of the proposed business in order to operate in the market. The proposed business wants to emphasize the importance of appearance and food preparation that enables to attract the customer as well as to achieve customers satisfaction through safe and good quality product. 2. Pricing Strategies The proponents price is low since the proponents will consider the financial status of the family who avail their product. The computation in getting the price of cassava puto well be net purchase + cost of production + markup cost = selling price. 3. Promotion Strategies The Cassava Puto Infinity Production will give free taste as a part of their promotion they also distribute pliers amounting Php 1,000 per month. The proponents also give 5% discount to those customers that have a large volume of purchase on maximum order which is 50 pieces. 4. Distribution Strategies The proponents decided that the product will be distributed to the school canteen on Monday to Friday and the market during Saturday and Sunday .

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CHAPTER III TECHNICAL STUDY

This chapter presents the technical aspect of the project such as the product description that explains for the satisfaction of the customers. The steps of making cassava puto. The machinery, equipment, furniture and fixture needed for the manufacturing of the proposed business. The building where the project will be operated, the layout and floor plan that illustrate the parts of building the location of the project which is near in the target market the capacity that shows the number of products produce and scheduling that shows the schedule of the workers in operating the business. It include also the waste management. A. Product Description These Puto were made up from cassava and sugar. This product gives satisfaction to every customer who will buy it because of its delicious taste it also gives carbohydrates to those people who do not eat rice regularly. Cassava Puto Infinity Production will offer different sizes of Cassava Puto. B. Production Process This proposed business is a manufacturing business it includes buying of finished products and reselling it to final customers.

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Figure 5 Production Process

START Preparation of Raw Materials Mixing the Flavor of the Product Steaming w/in 15 minutes Cooling Packaging END
rrrrr

The figure 5 shows how it will be process into finished product. In our production process, the first thing that the proponent will do is to prepare the raw materials for three (3) hours, they will prepare all the ingredients and utensils that are needed for cooking cassava puto. After all materials have been prepared they are mix the cassava into sugar for two minutes then put the cassava in the steamer machine by 15 minutes until it turn to yellow. Cooled it first then we can make a finished product. The finished product will be called cassava puto and ready to deliver into proper customers.

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C. Equipments, Furniture and Fixtures In every operation, machineries are needed to make quality products. This is used to make the operation efficient. The proponents want to make a just in time production. They prepared the following machineries and equipment that is showed in table 5. Including their uses, useful life and its unit cost. Table 6 shows the tools and utensils using the processing of the production . The table 7 shows the furniture and fixtures used for the operation. Table 5 Machinery and Equipments Description Fire Extinguisher Cellphone Usage Fire Safety Unit Price 3,500 Quantity 1 Estimated useful life 10 years Amount 3,500

Use as communication w/ Customers Ceiling fan Use to prevent heat Generator Use for Emergency Blackout Tricycle Use for (secondhand) delivering products Total

2,000

10 years

2,000

1,500

10 years

4,500

8,000

10 years

8,000

51,000

10 years

51,000 69,000

Table 5 shows the equipment needed for the manufacturing of the proposed Business.

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Table 6 Tools and Utensils

Description

Usage

Unit Price

Quantity

Estimated useful life 5 years

Amount

Kitchen Scale 1 set of knife (6 pcs) Ladle

Use to know the kg. of the product Use for cutting Cassava Use for mixing Use for cooking cassava Use to cook cassava

300

600

173

5 years

173

30

5 years

90

Steamer Machine (4 layered steamer) Gas Stove

1,400

5 years

1,100

2,000

5 years

2,000

Plastic Tupperware Chopping Board Total Use for cutting the cassava

65

5 years

130

180

5 years

360

4,453

The table 6 shows the tools and utensils that are needed for the business.

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Table 7 Furniture and Fixture

Description Mono block chair Office table (wood) Long table

Unit Price 450

Quantity 10

Estimated useful life 5 years

Total Price 4,500

908

5 years

4,540

800

5 years

1,600

Glass table

8,000

5 years

8,000

Trash bin (small) Trash bin (large) Total Amount

80

5 years

160

200

5 years

400

19,200

The Furniture and Fixture are needed for the business venture the table and chair will be used while transacting the business. Those products will be placed on the display cabinet for the easier way of operation.

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Table 8 Supplies Every Month

Description Ballpen Staple Record Book Calculator Wall Clock Pentelpen Plastic Sandobag Trash bag Hairnet Apron Plastic(labo) Total

Unit Price 12 50 85 150 105 35 10/pack(100 pcs) 10 pesos each 20 pesos each 85 pesos each 33/pack(100 pcs)

Quantity 6 pcs. 2 pcs. 1 pc. 3 pcs. 1pc. 2 pcs. 6 packs 12 packs 5 pcs. 5 pcs 195 packs

Total Amount 72 100 85 450 105 70 60 120 100 425 6,435 8,022

Table 8 shows the supplies needed in the operation of the proposed business.

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D. Building and Facilities The Cassava Puto Infinity Production will rent at BRGY. 5, Pangilinan St. BagongSilangPaluan Occidental Mindoro. It is owned by Mr. Reynold Zapata the proponents and the owner have an agreement that the rental payment will be 3,000 monthly and they will give one month advance and one month deposit. E. Location
Jeep Station

Central School

Tajonera St. Public Market

Site

Cassava Puto Infinity Production Petron Gasoline Station

Villas St.

Basketball Court

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Figure 6 Floor Plan

PRODUCTION AREA=40 sq.m. AREA=200 sq.m. 20 mts.

F. Lay out

PM

MM

Book Keeper

C.R.

3 mts.
W

Stock Room
FM

8 mts.

GM

2 mts.

Displaying Glass Long Table

2 mts.
W

5 mts.

Displaying Area

10 mts.

Entrance

10 mts.

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G. Capacity and Scheduling The proposed business will be opened for eight hours in seven days. The schedule of ordering and acquiring of cassava should twice a week. Table 9 Capacity Description Cassava Puto Small Medium Total Quantity Gram Daily Capacity Monthly Capacity Yearly Capacity

10 kilos 10 kilos 20 kilos

25 grams 50 grams 75 grams

200 Pcs. 100 Pcs. 300 Pcs.

6,000 Pcs. 3,000 Pcs. 9,000 Pcs.

73,000 Pcs. 36,500 Pcs. 109,500 Pcs.

Table 9 Shows the maximum of cassava production. Table 10 Schedule of Employees

Position General Manager Financial Manager Marketing Manager Production Manager Bookkeeper

Day Monday to Saturday Sunday to Friday Saturday to Thursday Friday to Wednesday Friday to Wednesday

Time 8:00 am to 5:00 pm 8:00 am to 5:00 pm 8:00 am to 5:00 pm 4:00 am to 12:00 pm 8:00 am to 5:00 pm

Hours 8 Hour/Day 8 Hour/Day 8 Hour/Day 8 Hour/Day 8 Hour/Day

Rest day Sunday Saturday Friday Thursday Thursday

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Driver Worker I Worker II

Monday to Saturday Thursday to Tuesday Wednesday to Monday

8:00 am to 5:00 pm 4:00 am to 12:00 pm 4:00 am to 12:00 pm

8 Hour/Day 8 Hour/Day 8 Hour/Day

Sunday Wednesday Tuesday

Table 10 shows the schedule of the workers in operating the business each of them will have 8 hours of work including 1 hour lunch break for seven days. H. Production Cost In the theory of economics cost of production is one of the determinants of supplier.Lower cost of production will convince the producer to produce more goods. Table 11 Production Cost Description Cassava Sugar Cheese flavor Coconut flavor Total Production Cost Quantity 40 kilos 20 kilos 3 pack 4 Pcs. Unit Price 13.00 40.00 49.33 10.00 Total cost/day 520 800 148 40 Total cost/month 15,600 24,000 4,440 1,200 45,240 Total cost/year 187,200 288,000 53,280 144,000 542,880

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Table 11 shows the total production cost of Cassava Puto Infinity Production per day, per month, per year. I. Raw Materials and Supplies The proponents considered the raw materials and supplies for the operation of the business. The main supplier of Cassava Puto Infinity Production came from BRGY. 1 Mapalad Occidental Mindoro which owned by Mr. Nestor Tinaliga and if ever there has a shortage of raw materials the proponents decided to have an alternative supplier which came from BRGY. AlipaoyPaluan Occidental Mindoro who is owned by Mrs. Blesilda Zapata. Table 12 Raw Materials

Description Cassava Sugar Chees flavor Coconut flavor Total

Price 13.00 per kilo 40.00 per kilo 45.00 per pack 10.00 per pack 108.00

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Table 12 shows the raw materials for the business operation. J. Utilities The operation of the proposed business need utilities such as electricity, load outlet, gasoline and water in such a way the sources uses and cost of the utilities must be considered. Table 13 The Utilities in the Venture of the Business Description Electricity Cellphone load Gasoline Water Motor Total Sources OMECO Load Outlet Petron Jetmatic Monthly Consumption 1,500 300 1,000 542 3,342 Yearly Consumption 18,000 3,600 12,000 6,500 40,100

Table 13 shows the different utilities to be used for the monthly operation of

the business.

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K. Waste Management The proponents consider the cleanliness of the business. They are going to separate the garbage into two (biodegradable and non-biodegradable). The biodegradable materials will be used as a fertilizer to plats. While the non0biodegradable materials will be sold to the junkshop. They will use the trash bag for their garbage to maintain the cleanliness of the working area.

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CHAPTER IV MANAGEMENT STUDY The Organizational and Management study is the vital aspect of feasibility study. This chapter aims feasibility study. This chapter aims to provide data with regards to the forms of business organization as well as the needed personnel their requirements and job description. A. Form of Business Ownership The proponents of Cassava Puto Infinity Production study. Choose the partnership as a kind of business ownership for their target business, wherein two or more persons are contributing money, property and industry to a common fund with the extension of dividing among themselves for the following reasons: To be able to contribute more capital and credentials. To share ideas for the decision making. To maintain and control the operation by partners only.

B. Personnel Requirements In this business the proponents agreed to hire two workers and one driver for their delivery.

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Figure 8 Organizational Chart MONTEMAYOR, REYMART GENERAL MANAGER MONTEMAYOR, JOHN CARLO FINANCIAL MANAGER

DIAZ, GAVINO JR. BOOKKEPPER

VALBUENA,JOHN MICHAEL PRODUCTION MANAGER

BASILIO, JOMMEL MARKETING MANAGER

WORKER I

WORKER II

DRIVER

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C. Qualification Standard Workers Driver 20-25 years old Male Have a drivers license Have an experience in driving at least 5 months 18 years old and above Male or Female Physically fit Having an experience related to a job

D. Job Description General Manager The general manager of the proposed business supervises and manages the overall good and operation of the business. The manager identifies problems creates and makes choices and provide alternative action for the business finance and earnings. He is also the one who is responsible for all the operation of the business he makes sure that the operation is working out.

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Marketing Manager A manager whose primary task to manage the marketing resources of a product of business he is the one who process the selling , technique , promoting and distributing the product. Financial Manager He is the one who is responsible in utilizing the money for the business. He is also responsible in making the financial statement of the business, he also manage the money using in every cost of the business consumption. Production Managers A production manager involve with the planning, coordination and control of manufacturing process they assure that goods and services and produced efficiently and that the correct amount is produced at the right cost and level of quality. Most production managers are responsible for both human and material resources. Bookkeeper The bookkeeper is responsible in updating the reports, preparation of the statement of accounts and the consolidating of the duplicate copies of all important paper.

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Workers They are responsible for assisting the customers the workers are also responsible in preparing, slicing, cooking, mixing, and display the product they are also the one who maintain the cleanliness of the production area. Driver He is the one who deliver the products in the canteen of Central Elementary School. E. Compensation Package Table 14 Compensation Position General Manager Financial Manager Marketing Manager Production Manager Bookkeeper Driver Worker I Worker II Total Monthly 3,500 3,500 3,500 3,500 2,500 2,000 2,500 2,500 23,500 Annually 42,000 42,000 42,000 42,000 30,000 24,000 30,000 30,000 282,000

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Table 14 shows the compensation package of the worker including their monthly and annual salary. Table 15 Benefits

Position General Manager Marketing Manager Production Manager Financial Manager Bookkeeper Worker I Worker II Driver Total

Monthly SSS 233.30 233.30 233.30 233.30 233.30 186.70 186.70 186.70 2,204

Monthly Philhealth 69.98 69.98 69.98 69.98 69.98 8.70 8.70 8.70 376

13th Month Pay 3,500 3,500 3,500 3,500 2,500 2,500 2,500 2,000 23,500

Table 15 shows the total benefits of the workers.

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F .Projected Time Table

Activities

September 10 September 25

September 26 October 9

October 10 October 21

October 22 November 3

November 4 November 11

November 12 November 25

November 26 November 30

December 1 December 14

Project Conceptualization Preparation of FS Gathering Data Signing of Permit Purchasing Equipment Hiring of Personnel Preparation of the Store Start of the Business

Table 14 shows the projected time table of the business with pre operating activities with corresponding time duratio

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