Académique Documents
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Group 3
Abad, Joshua F.
Gutay, Jenize Rojean D.
Miguel, Jerome
BSA 2-A
MGT 201 WTh 1- 2:30 PM
Mr. William Garcia
individuals who will make up the organization. This aspect will determine the
successful realization of the project study.
Technical Aspect
After having determined the market size and area, product demand and
growth, the potential and technical feasibility of the project may be analyzed. The
technical soundness analysis will be considered complete if all pertinent technical
aspects of the project have been taken into account in the analysis and if the
planned construction or procurement conforms to accepted engineering standards
and practice. The estimated cost of the project should be as low as any other
reasonably available alternate which would produce the intended results.
The objective of this portion of the feasibility study is to determine to what
extent the project meets the technical soundness criteria.
Technical Requirements of the Project
Prior to projecting technical feasibility, the technical requirements of the
project must be analyzed. This may be done by
A. Stating:
1. The quantity and quality of the products to be produced
2. The specifications of raw materials
3. The supplies to be used
4. The labor needed, both skilled and unskilled
5. The waste disposal methods
6. The manufacturing process
B. Providing estimates of total project cost and enumerating the major items of
capital cost.
C. Listing down in detail estimated production cost and overhead cost that will
go into the operating of the proposed plan.
D. Taking into consideration any major technological development in the
industry which may affect the commercial or technical soundness of the
project. Once the technical requirements have been prepared, the project
proponent is ready to analyze technical feasibility.
Financial Aspect
The financial aspect of the project feasibility study quantifies the results of
the marketing, technical, management, taxation and legal phases of the project
study, and expresses in peso terms the possible outcome of operating the project.
The major parts of the financial study are:
1. Statements of assumptions;
2. Possible sources of outside financing, if the capital requirements cannot be
met entirely by the proponents;
3. Projected financial statements;
4. Details of various amounts contained in the projected financial statements;
and
5. Analysis of the financial projections.
Basically, project studies consist of the skillful coordination of the various
information of all the factors in the form of financial projections. It covers all the
factors that are pertinent to an intended venture having established the existence
of a sample market and the feasibility of the production facilitates to supply this
market, the investigation should move on to the study of finance cost. What
remains is to study the result of the market and technical studies.
The financial study attempts to meet the following objectives:
1. To make a realistic, complete, and conservative estimate of the total cost to
put up a project to its capital requirements.
2. To determine the amount of capital financing available and borrowings
needed, including possible source and terms.
3. To make complete, safe, and realistic projections of operating cost and
revenues.
4. To determine whether the project will be able to pay its total debt with a
reasonable margin of safety.
5. To determine the necessary financial arrangements to insure that the project
will have the cash it needs when required.
6. To determine the companys earnings performance and the soundness and
the liquidity of its financial positions.
Socio-Economic Aspect
A proposed venture, to be worthy of financing, should be pre-convinced not
only for profit but also for social and economic benefits. It becomes even more
worthy of establishing a business unit if it will be for the welfare of others rather
than simply for the wealth or power of the proprietor.
The objective of the socio-economic aspect of the feasibility study is to
determine how the project will affect:
1. Income, considering the benefits it will give to families and individuals;
2. Taxes, indicating the amount of revenue it could raise for the government;
3. Prices, considering the influence of the proposed project on supply of goods,
and foreign exchange balances;
4. Local producers, considering the use of locally manufactured machines, raw
materials, and labor; and,
5. The community, in terms of benefits the proposed business will directly or
indirectly share on the development of the place, community, and the nation.
The one preparing the study may not be professionally competent, and hence
the opinion he forms may be deficient. Professional competence is an opinion
on the project based on the analyses.
Even assuming that all the required data are available, and the one preparing
is competent, the study is still a forecast. The results of a forecast do not
usually tally with the actual events.
Utility of Project Studies. Notwithstanding the above inherent limitations (but
assuming that the one preparing the study is competent), the project study
still offers the advantage of consulting the most realistic basis of calculated
action to implement or stop a project. Hence, a project studies minimize the
profitability of business failures.
Purpose of Licensing:
If you are a single proprietor and your business is using a name other than
your own name, that business name should be registered.
For partnerships and corporations, registration of business name with BTRCP
is optional. By registering with the Bureau, you are assured that no other entity can
legally use your business anywhere in the Philippines.
Register your business name at the DTI regional office where your business is
located (those from National Capital Region may register at the BTRCP office in
Makati;.. The following are the procedures to follow:
1. Pay a registration/ processing fee (P121.00 at 1992 rates) and secure
application form,
2. Fill up the form and file it with the DTI office, Attach original receipt, and,
3. With the form, file the following basic supporting documents:
For Single Proprietorship
IV.
Processing time normally takes four days from date of filing. During peak
season (usually 1st quarter) processing time is seven working days.
V.
Validity of Registration
The BTRCP Certificate of Registration is valid for a period of five (5) years.
Different procedures apply for provincial and metro manila applicants.
VI.
Accreditation
Difference
Entrepreneurs are go-getters. After they build a business, they are ready to push
the envelope once again.
Day-to-day operations bore them to a certain degree. Sure, they are interested in
continuing to grow their first company, but in their mind, the daily grind of business
is something to be delegated.
Entrepreneurs start companies because they want to change things. They expose
gaps in the market. They are always moving on to the next idea.
Once entrepreneurs build one profitable business, they say, "Watch me. I did this
once and now I'm going to do it again."
Managers believe in the business they built so much that they want to cultivate it
on a daily basis. Once their first business is profitable, they view it as their personal
responsibility to take it to the next level.
Once managers build one profitable business, they say, "We're profitable. Now
watch me take this worldwide."
Let's get one thing straight: both entrepreneurs and managers can be wildly
successful with their businesses.
It's not about one style being better than the other; it's about choosing the style
that's best for you. I'll give you an example using two of the most successful
business men of our time.
Richard Branson vs. Steve Jobs
Branson is an entrepreneur. His Virgin brand now encompasses over 400 different
businesses. 400! When he succeeds with one business idea, he is on to the next. In
fact, the following quote from Branson is one of the reasons I wrote this article.
"An entrepreneur is not a manager. An entrepreneur is someone who is great at
conceiving ideas, starting ideas, building ideas...and then handing them over to
really good managers to run the business."
Steve Jobs was a manager. Last month, Apple had the largest market cap of any
company in the S&P 500. Jobs built a $300+ billion dollar business by operating in a
manner very different from Branson.
Jobs was famously a micromanager and a perfectionist. Employees have noted him
calling out tiny details in design changes (all of which had to be approved by him),
grammatical and spelling errors in company documents, and so on. He would even
answer customer service complaints as the CEO on occasion.
You can be successful either way
Which are you?
Branson and Jobs have both been incredibly successful at building their businesses,
but they have done so in very different ways.
For some of us, being a manager is the path to success. For others, being an
entrepreneur is the best bet.
If you're an entrepreneur, then keep building businesses. If you're a manager, then
focus on a single subject matter and become brilliant. This is about finding your
strength.
Characteristic of Manager
1. Leadership
Good managers should be able to lead the employees they manage.
Leadership traits include emotional stability, enthusiasm and self-assurance,
the economy. The stimulation of related businesses or sectors that support the new
venture add to further economic development.
2. Entrepreneurs Add to National Income
Entrepreneurial ventures literally generate new wealth. Existing businesses may
remain confined to the scope of existing markets and may hit the glass ceiling in
terms of income. New and improved offerings, products or technologies from
entrepreneurs enable new markets to be developed and new wealth created.
3. Entrepreneurs Also Create Social Change
Through their unique offerings of new goods and services, entrepreneurs break
away from tradition and indirectly support freedom by reducing dependence on
obsolete systems and technologies. Overall, this results in an improved quality of
life, greater morale and economic freedom.
4. Community Development
Entrepreneurs regularly nurture entrepreneurial ventures by other like-minded
individuals. They also invest in community projects and provide financial support to
local charities. This enables further development beyond their own ventures.
deserve to join in lobbying for the interest of the Filipino small business sector.
Joining them can also open new markets for yourself since bigger businesses can
also job out smaller orders to you. Also, the more magnanimous businessmen can
also introduce their buyers to you. After all, it is not often that job orders can be
filled up by a single item. Business friends are needed to fill up big ones, and the
intelligent businessmen know that.
The following is a list of existing Filipino business associations:
Artificial Plant Manufacturers Association of the Philippines
Address: c/o Trees Company 45 Ligertad St., Mandaluyong, Manila
Composition: Artificial Plant Manufacturers
Association of Footwear Industries of the Philippines
Address: 56 J. de Jesus St., Caloocan City
Composition: Footwear Manufacturers
Association of Shrimp Producers and Exporters
Address: Domestic Insurance Bldg., Bonifacio Drive, Port Are, Manila
Composition: Shrimp Producers and Exporters
Ceramics Association of the Philippines
Address: c/oSaniwares Standard Bldg., 151 Paseo de Roxas, Makati
Composition: Ceramics Manufacturers and Exporters
Chamber of Furniture Industries of the Philippines
Address: 9/t, Strata 100 Bldg., Emerald Ave., Pasig
Composition: Furniture Manufacturers
Christmas Decors Producers and Exporters Association
Address: c/o Makbel Enterprises, 1617 Sisa St., Sampaloc, Manila
Composition: Christmas Dcor Producers and Exporters
Coconut Oil Refiners Association
Address: Muella de Binondo, manila
Composition: Coconut Oil Refiners