Chapter 1

BACKGROUND OF THE STUDY

This chapter presents the introduction and purpose of the study, the

history of the project, the proponents, proposed name of the business, type of

business organization and location of the proposed business.

Introduction

Problems are opportunities for business entrepreneurs, in order to come

up with a good business ventures the proponents must first know the answers to

some important questions. For example is the future business needed by the

community, do they want the proposed business or is it a necessity that they will

willingly buy or purchase in the future. As the proponents answer these questions

they come up to a business which is Dairy Farm. Dairy farming is a class of

agriculture for long-term production of milk, which is processed (either on the

farm or at a dairy plant, either of which may be called dairy) for eventual sale of a

dairy product. Although any mammal can produce milk, commercial dairy farms

are typically one-species enterprises. In developed countries, dairy farms

typically consist of high producing dairy cows. Other species used in commercial

dairy farming include goats, sheep, and camels. In Italy, donkey dairies are

growing in popularity to produce an alternative milk source for human infants.

As the proponents observed the community they have found the needs

and wants of dairy products and the shortage of the said products. For some

case dairy products is sometimes used as substitute breast milk for infant

1
feeding. But this is not suggested by the professionals because breast milk is

better for infants. The proponents ought to be a supplier of milk for the well

established businesses. It will also help to lessen the price of the processed

foods from milk. And the shortage of milk production will be lessened.

The objective of the study is that milk should be produced on-farm from

healthy animals under generally accepted conditions. To achieve this, dairy

farmers need to apply GAP in the following areas; animal health, milking hygiene,

animal feeding and water, animal welfare, and environment. Dairy farmers are in

the business of producing food. They aim to ensure that the safety and quality of

their raw milk will satisfy the highest expectations of the food industry and

consumers. On-farm practices should also ensure that milk is produced by

healthy animals under acceptable conditions for the animals and in balance with

the local environment.

History of the Project

The use of dairy product as beverages probably began with the

domestication of animals. Most milk is obtained from cows.

In 2010, two Filipino scientists, Dr. Johnny Alibay and Dr. Arceo Bautista,

said that the local industry needs a massive upgrading, particularly of its cattle

stocks, to reduce countrys dependence on imported dairy products. They said

that dairy industry development can be achieved with the massive upgrading of

domestic cattle using artificial insemination from genetically superior Holstein and

Jersey sires and that the industry could be developed through active involvement

2
of local government units in the barangays and villages all over the country. It is

also said that the country in 2006 imported US$500 million worth of milk and

dairy products with only one percent of its consumption sourced from locally

produced milk. A successful dairy industry will not only reduce importation but

boost the countrys milk-based feeding program and it will also shield us from

health risks that come with dependence on imported milk and dairy products.

In 2013, Philippine Agriculture Secretary Proceso Alcala said Manila will

aim to sharply increase its dairy herd and breeding program, but analysts feel the

country faces a long arduous fight to reduce its heavy dependence on the U.S.,

New Zealand and Australia because of a rapidly growing population and strong

demand for products like milk. Philippine milk production stands at just under

19,000 tons, or less than one pint per person, that means the Philippines is

producing less than one percent of the dairy products it consumes in a year. In a

report by the U.S. agriculture attach at the U.S. Embassy in Manila, it is said

that late last year (in 2012) dairy products are the countrys second largest

agricultural import after wheat. Attach reports are not official data of the U.S.

Agriculture Department, but they are considered authoritative and influential by

the commodity community. That picture could soon change rapidly. With a

strong economy and a growing population of roughly 100 million in 2012, the

Philippines is a large and rapidly expanding market for milk and milk products,

the U.S. agriculture attach report concluded.

In 2015, two lady senators vowed their support for programs by the

Department of Agriculture (DA) to improve dairy production after learning that the

3
country produces only one percent of the demand for milk. Sen. Cynthia A. Villar,

chairwoman of the Senate agriculture and food committee and chairwoman of a

Senate finance sub-committee, asked the DA to prioritize the improvement of the

countrys dairy production after she and Sen. Loren Legarda, chairwoman of the

Senate finance committee, heard DA officials defend their proposed 2016 P90-

billion budget.

In 2016, Sen. Cynthia Villar said that achieving self-sufficiency in milk

should also be a priority in the agriculture sector because of its potential to

increase farmers' income and to address malnutrition in the countryside. "We

have a lot of untapped potential in the dairy industry and if we focus on this, the

industry will be able to contribute more to the economy," Villar added.

It is concluded that the Philippines is in need to improve the status of its

dairy industry to support the growing population which are related to malnutrition

and to achieve self-sufficiency in milk by boosting its dairy herd and active

involvement of the local government units all over the country.

4
Project Proponents

The researchers committed themselves in a partnership having agreed to

invest in the common business. The name, residences, citizenship and

percentage of ownership are given in the table.

Table 1.1

Proponents of NutriLfresco Dairy Farm

Name Citizenship Address Percentage of

Ownership
Calupas, Iris T. Filipino Pantay Road, 34%
SitioBukal, Brgy.
Tandang-Kutyo,
Tanay, Rizal
Habal, Maria Claudine F. Filipino J. M. Catolos Ext. 33%
St., Brgy. Kay-Buto,
Tanay, Rizal
Magtulis, Mark Anthony M. Filipino South Ville, Brgy. 33%
Plaza Aldea, Tanay,
Rizal
Total 100%

Table 1.1 shows the proponents information where Iriz T. Calupas takes

34% of the contribution while Maria Claudine F. Habal and Mark Anthony M.

Magtulis both have 33% contribution a total of 100% of shares.

Name of the Business

The proposed name of the business is NutriLfresco Dairy Farm. It is

derived from the combination of words, as Nutri for nutritious, L for latte which is

another term for milk, and Fresco for fresh. The name of the business should

reflect and represent its product and it should be nutritious fresh milk.

5
Emblem

Figure 1.1

Logo of the Proposed Business

The design of the logo represents the product and the proposed business

itself. The black and white spots encircling the name of the business stand for the

source of dairy, which is cow, the shape symbolizes continuity, and the green

font signifies freshness.

Type of Business Organization

The form of ownership of NutriLfresco Dairy Farm is partnership, since

they will start in a small-sized business with four partners. Each individual will

contribute assets to the business like money, property or industry and will have a

share in the profits and losses of that business. This will help the business to

grow, each partner takes part in the management of the business, and also takes

responsibility for the liabilities of the business. The management will be

considered effective and easy to organize because each owner will take part in

all activities, can combine their talents, skills and ideas and will work as a team

6
for the growth of their business considering they have equal responsibilities. The

profit sharing ratio depends on their contribution.

Project Location

The proponents choose to establish their proposed business in Brgy.

Plaza Aldea,SitioBarbonTanay, Rizal. The proponents found out through

research and studying thoroughly that the location is suited for dairy farming

because it has a wide range of fertilized land that is used and needed for pasture

propagation of grass. This agricultural space is ample enough to provide shelter

and produce as well as sustain sufficient silage for cattles continuous feeding

consumptionto meet their food requirement that is very important to achieve the

desired liters of milk the cattles could produce.

7
 Figure 1.2

Vicinity Map of Sampaloc Road, Barangay Plaza Aldea

8
 Chapter 2

MANAGEMENT AND PERSONNEL FEASIBILITY

This chapter presents the proposed organizational structure, number of

personnel, their duties and responsibilities and qualifications, management

proposals, policies and forms design.

Organization System and Structure

The organizational structure of the proposed business is an organization

wherein the flow of command starts from manager, who will also be responsible

for marketing and promotion of the product, and the workers to take care of the

animals and maintenance of the cleanliness and orderliness of the workplace.

Manager

Worker Worker

Figure 2.1

Line Type of Organization

The line type of organization shall be used as the organizational structure

of the proposed business.

9
 The organizational chart from higher to lower position will follow the

assigned duties and responsibilities based on the prescribed job specification.

Personnel (Administrative)

Table 2.1

Proposed Personnel/ Workforce of the Business

Position/ Number of Job Description Job Salary

Title Worker Specification

Manager 1 Responsible for the Must be a P10,500

overall graduate of
organization of the any business
business including related
decision making, courses,
strategic planning, having
and developing supervisory
policies and and
procedures. managerial
experience.
Responsible for
marketing and Having good
promotion of the personality
product.

Worker 4 Responsible in Must be P24,000

taking care of the physically fit
animals and and
cleanliness and knowledgeable
orderliness of the about dairy
workplace. farming.

Management Style

The proponents decided to use the democratic type of management style

in running the proposed business. It is a style of management where everyone

has the opportunity to contribute ideas to the decision that helps the business in

attaining its goals and objectives. It also helps in the development of a

10
harmonious relationship within the organization. It is a participative style of

management as it give the employees the confidence to raise their insights and

let them be a part of the decision making process of the business. Democratic

leadership boosts team spirit and high morale among employees.

Administrative Policies

A business establishes administrative policies to align operations, set

behavioral expectations, and give responsibilities to be practiced by the workers.

Punctuality.

Efficiency and effectiveness.

Cleanliness and orderliness.

Eight hours of working.

Overtime beyond eight hours of working.

Hiring of qualified applicants.

Proper hygiene and grooming should be practiced.

System and Forms Design

The business should be firm in implementing policies, rules and

regulations in the organization to ensure the efficiency and effectiveness of the

workers, to maintain the cleanliness and orderliness of the workplace, to secure

the quality of the product at its best before it reaches the manufacturers for

processing. The manager and caretaker should always have harmonious

relationship to work together as a team towards reaching the goal of the

organization.

11
 The business must have office files of each employee, to be used as their

record for performance evaluation, and to give the right benefits or

compensation. The business also considers the use of time card to monitor the

record of the workers day of work and tardiness. The organization will also use

application form, leave form, resignation form and pay slip.

Legal Requirements

As required by the law and to comply with legality, the business needs to

be registered to the following:

Municipal Business Permit

Barangay Business Permit

Building Permit

Department of Trade and Industry (DTI)

Sanitary Permit

Social Security System (SSS)

PhilHealth

12
 Chapter 3

MARKETING FEASIBILITY

This chapter discusses market description, projection of market

demand and supply gap analysis, general marketing practices, and sales

projection.

Market Description

The proposed business intends to be a supplier of fresh milk to

manufacturers which produces dairy products such as cheese, yema, pastillas,

choco milk and other commodities which uses milk as an ingredient. The

proposed business will be implemented in the town of Tanay. This proposed

business is conducted to lessen the unsatisfied clients due to scarcity of supply,

since dairy products have a growing demand in the market.

The target markets of the proponents are establishments like Llano

Farmers Multi-Purpose Cooperative, the Malejana Ice Cream, Rizal Dairy Farms,

and the Moolk Creamery. They consume 110, 21, 100, and 50 liters of fresh milk,

respectively.

Market Demand

The proponents determine the demand of the dairy milk products in

CaLaBaRZonthrough research and gathering data and collecting information

from trusted sources, like NDA, DA, PSA.

13
 Table 3.1

Demand for the Last Five Years

Year Milk Consumption of Major Dairy Processors in Estimated

CaLaBaRZon (Liters) Demand
Laguna Batangas Rizal (liters)
2011 2, 281, 600 4, 590, 608 94, 900 6, 967, 108
2012 2, 381, 600 4, 690, 608 102, 565 7, 174, 773
2013 2, 381, 600 4, 690, 608 102, 565 7, 174, 773
2014 2, 381, 600 4, 690, 608 102, 565 7, 174, 773
2015 2, 381, 600 4, 690, 608 102, 565 7, 174, 773
Source: DA Regional Field Office IV-A, NDA

Table shows that in the last five years Batangas has the highest

demand of dairy followed by Laguna and Rizal with the least demand of dairy.

Table 3.2

Projected Demand for the Next Five Years

Year Projected Demand

2016 7, 216, 306 Liters
2017 7, 257, 839 Liters
2018 7, 299, 372 Liters
2019 7, 340, 905 Liters
2020 7, 382, 438 Liters

The proponents use the arithmetic straight line method to compute the

projected demand for the next five years. That is, current years estimated

demand (2015), 7, 174, 773 liters, minus the first years estimated demand

14
(2011), 6, 967, 108. The answer is 207, 665 divided by the number of years (5),

which is equal to 41, 533 liters and it will be added to the current years estimated

demand.

Computation: 7, 174, 773 6, 967, 108 = 207, 665 5 = 207, 665 +

7, 174, 773 = 7, 216, 306

Market Supply

The proponents determine the supply of the dairy milk products

through research and gathering data from trusted sources, like NDA, DA, PSA.

Table 3.3

Supply for the Last Five Years

Year Supply (Liters)

2011 3, 163, 094
2012 3, 680, 857
2013 4, 293, 835
2014 4, 807, 060
2015 5, 287, 766
Source: NDA and PSA

The table shows the supply in CaLaBaRZon for the last five years

based on the data from the value chain analysis on Dairy Milk Industry in Region

IV-A. The highest contributor in milk production is Batangas with 63%, followed

by Quezon with 20%, Laguna with 14%, Rizal with 2%, AND Cavite with only 1%.

15
 Table 3.4

Projected Supply for the Next Five Years

Year Projected Supply (Liters)

2016 5, 393, 521
2017 5, 499, 276
2018 5, 605, 031
2019 5, 710, 786
2020 5, 816, 541

The table shows 2% growth rate in projected supply every year.

Market Demand and Supply Gap Analysis

Table 3.5

Market Demand and Supply Gap Analysis

Year Demand Supply Gap Percent

(Liters) (Liters) (Liters) Unsatisfied
2016 7, 216, 306 5, 393, 521 1, 822, 785 25%
2017 7, 257, 839 5, 499, 276 1, 758, 563 24%
2018 7, 299, 372 5, 605, 031 1, 694, 341 23%
2019 7, 340, 905 5, 710, 786 1, 630, 119 22%
2020 7, 382, 438 5, 816, 541 1, 565, 897 21%

The table 3.5 shows the market demand and supply gap for the next

five years. It shows that there is a demand and supply gap every year for raw

fresh milk. The NutriLfresco Dairy Farm aims to supply the necessary liters of

milk needed in the market.

16
General Marketing Practices

The proposed business has indirect competition or market players, it

shows that the business proposal, as supplier, produce products not directly to

the end users. Its target market is businesses that produce dairy products that

will be distributed to the wholesaler to retailer and to consumer.

Market Share

1% 65% - Batangas
25%
19% - Laguna
1%
65% 1% - Rizal
19%
25% - Unsatisfied

1% - Target Market

Figure 3.1

Market Share

The graph shows 25% unsatisfied demand and proponents intended

to supply at least 1% of the unsatisfied customers. The target markets of the

proponents are the Lllano Multi-Purpose Cooperative, Rizal Dairy Farms,

Malejana Ice Cream, Moolk Creamery, KKMI, Laguna Creamery (Real Fresh).

17
Marketing Plan

This part describes the marketing 4Ps strategy of the proposed

product of the business, a specific strategy on product, pricing, promotion, and

distribution of the proposed business.

Product Mix Strategies

The researchers proposed to supply raw fresh milk to the

manufacturers and processors of dairy products. The product will be contained in

a milk can with a brand name, NutriLfresco Dairymaid. The price of the proposed

product is appropriate to meet the customers expectation of good and high

quality raw fresh milk.

Pricing Mix Strategies

The pricing strategies of proponents for the product will be based per

liters, it will cost Php35 per liters that meets good and high quality of the

products.

Promotional Mix Strategies

The promotional techniques to be used for introducing NutriLfresco

Dairy Farm in the market are through wholesaling and retailing with the use of

internet/ online marketing, fliers, print advertisements, outdoor advertising and

product presentation to prospective clients.

18
Place Mix Strategies

The location of target markets is within Rizal and its neighboring

province. The channel of distribution will be suppliers to manufacturer or

processors to reseller/retailer to domestic and industrial buyer and lastly to

household consumer, and the type of transportation is delivery through L300

vehicle.

19
 Sales Projection
Table 3.6

Sales Projection

2016 2017 2018 2019 2020

Product Quantity Cost Sales Quantity Cost Sales Quantity Cost Sales Quantity Cost Sales Quantity Cost Sales
(PhP) Revenue Revenue Revenue Revenue Revenue
Milk 90,000 35 3,150,000 90, 000 35 3,150,000 102, 000 35 3,570,000 102, 000 35 3,570,000 114, 000 35 3,990,000

Calves 13 20,000 260,000 13 20,000 260,000 15 20,000 300,000 15 20,000 300,000 17 20,000 340,000

Total 3,410,000 3,410,000 3,870,000 3,870,000 4,330,000

Sales projection for the next five years was computed by getting the 1% target market of Supply and Demand

Gap and multiplied by the unit price, another product that can be source of income of the proposed business is by selling

calves after a year of giving birth. Based on the assumption of the proponents, NutriLfresco Dairy Farm will produce 300

liters of milk a day, and a total of 90, 000 liters of fresh milk annually.

300 liters x 300 days = 90, 000 liters/ year

The calves that can be sold in a year is 13 with a gradual increase of two calve after two years, costing 20, 000

per calve. This also determines the gradual increase in the production of fresh milk in NutriLfresco Dairy Farm.

20
 Chapter 4

PRODUCTION OR TECHNICAL FEASIBILITY

This chapter presents the details of the proposed business, how they will

be produced (manufacturing), delivered (service), and raised (agribusiness)

using their own location, buildings and facilities, capacity and lay-outing

proposals; what will be specific machineries and equipment, raw materials, and

manpower requirements, utilities, waste disposal management and production

system.

Product

Milk is valuable nutritious food, used in food and beverages. It contains

many nutrients and provides a quick and easy way of supplying these nutrients to

the diet within relatively few calories. Milk from cows mammary glands has long

been associated with good health. Milk and dairy products are providers of

calcium, phosphorus, magnesium and protein which are all essential for healthy

bone growth and development. The amounts of calcium and phosphorus in milk

and dairy products are also beneficial for the development and maintenance of

healthy teeth. Studies have shown that higher calcium intakes may reduce high

levels of bad cholesterol in the blood, and increase low levels of good cholesterol

both of which are known to be risk factors for cardiovascular disease, thus milk is

good for the heart. Cows milk are often fortified with vitamin D, adequate vitamin

D levels support production of serotonin, a hormone associated with mood,

appetite and sleep, while vitamin D deficiency has been associated with

21
depression. Protein found in dairy can support muscle growth and repair.

Maintaining a healthy amount of protein for muscle development is important for

supporting metabolism and contributing to weight loss and weight maintenance

and sufficient dietary protein is needed to preserve or increase lean muscle.

Production Process

The type of production is continuous manufacturing where a product is

produced continuously. It is a continuous process because the materials, either

dries bulk or fluids that are being processed is always in motion.

The proponents choice of breed is Holstein Friesian, these dairy cattle

have been raised successfully in the Philippines with proper management and

nutrition. The business will start with 12 heads of cattle heifer. The mature weight

of the female Holstein Friesian is 500-568 kilogram with an average daily milk

production of 22 liters.

Milk Collection
Feeding

Delivery
Packaging
Figure 4.1

Production Process

22
 Figure 4.1 shows the production of NutriLfresco from grazing of cattle to

collection of milk with the use of milking machine to packaging up to delivery of

the product to the client.

Feeding and Nutrition Management

The feeding system will be zero grazing. The pasture which is planted of

different grasses and legumes is cut by the strip and then carried and fed to the

cattle. The advantage of this system is 50% less grass consumption, absence of

internal and external parasites, less bacterial infection, less chances of injury,

uniform milk production, easier handling and observation and no trampling of

pasture grasses and legumes thereby assuring more harvest per area.

Feeding Formulation

Weight of milking cattle = 500 kg

Production (daily) = 22 liters

Table 4.1

Feeding Formulation

Total Digestible Nutrients Total Crude Protein

(kg) (g)
Maintenance (500kg 3.72 432
body weight)
Milk Production (.304) (82)
For 22 liters of milk 6.7 1,804
Total Nutrients Needed 10.42 2,236

23
Nutrient Composition

Table 4.2

Nutrient Composition

Dry Matter TDN CP

(%) (%) (%)
Napier Grass (60 days regrowth) 14.1 7.14 1.15
Centrosema (leaf and vine) 24.2 11.8 5.0

Napier grass and Centrosema

The normal consumption of dry matter of good quality forage is 2.0-2.5

percent of body weight

Weight of cow = 500 kg

x.02

10 kg dry matter from forage

Apportion that 75% of dry matter would come from Napier grass and 25%

DM from centrosema.

10 kg x .75 = 7.5 kg DM from Napier

10 kg x .25 = 2.5 kg DM from Centrosema

Determine amount of Napier and Centrosema to feed.

7.5 (DM needed)

= 53 kg of Napier
.141 (DM Napier)

2.5 (DM needed)

= 10 kg of Centrosema
.240 (DM Centrosema)

24
Nutrient Supply

Table 4.3

Nutrient Supply

TDN CP
(kg) (g)
Napier grass 53 kg 3.78 610
Centrosema 10 kg 1.18 500
Total 63kg 4.96 1110
Nutrients Supplied by Concentrate

Table 4.4

Nutrients Supplied by Concentrate

TDN CP
(kg) (g)
Total Requirements of milking Cow 10.42 2,236
Nutrients from forage 4.96 1110
Additional nutrients needed 5.46 1,126

High milk producers should be fed of 16-18% CP.

1,126 (additional crude protein needed)

= 6 kg of concentrate
.180 energy protein

Since there is still a need for 6 kg, TDN, the 6 kg concentrate will only

supply 3.92 kg, TDN (6 x .654) this amount will not meet the additional TDN

needed of 5.46 kg (5.46 3.92 = 1.54). An energy supplement such as rice bran

(CP= 0.716; TDN= 53.6%) can be used to supply the balance of 1.54 kg TDN.

1.54 (additional TDN needed)

= 2.87 kg of Molasses
.535 (TDN of rice bran)

25
Feeding Consumption

Table 4.5

Total Daily Food Consumption

Supply No. of Consumption Amount Cost Total

heads in (Kg.) Consumption
Napier Grass 15 53 795 kg 1.50 1192.5
Centrosema 15 10 150 kg 1.50 225
Rice Bran 15 29 43.5 kg 1.50 65.25
Concentrates 15 6 90 kg 16 1440
Salt 15 No Limit 10 10
Water 15 No Limit - -
Total 15 2,932.75

Fresh Milk Production

Pregnancy of cattle is 283 days or 9 moths

Production of fresh milk will start after giving birth

It is estimated to have 300 days of production per head in one year allowing them

to be dried for 60 days

Breeding Management

It is best to breed heifers 18 to 20 months old or weighing 220 to 250

kilograms. For milking cows, should be bred 60 days after calving depending on

the condition of the animal. A general guide is to breed them on the second heat

after calving. Ample time should be given for the uterus to return to its normal

state.

26
 The use of artificial insemination as part of breeding management is a

popular practice. Some of its advantages are; obtaining top quality semen is

much cheaper than maintaining a bull, eliminates injuries to small cows or female

when mated to large bulls, extends the use of a good proven sire, and effective

means of controlling venereal diseases.

Gestating Management

The gestation process of dairy cattle ranges from 260 to 296 or an

average of 283 days. During early pregnancy, the animals can be managed

together with the heifer herd. In the last two months of pregnancy, the animals

may be separated from the heifer herd and mixed with the dry herd. The animals

should be given more care and attention and better nutrition. They should be free

from hazards and stress. Do not make the pregnant cows fight or butt with other

animals and they should not be frightened.

Lactating Management

The management of milking animals involves factors as training, kindness

and care, and regularity of feeding and nutrition is a must for maximum milk

production. Good quality forages should be fed as much as possible. Keep the

cows clean, cool the animals by sprinkling or splashing them with water during

the hot hours of the day and provide them a clean drinking water.

27
Health Management

There are general considerations for herd health program. Cleanliness

and sanitation are necessary in all phases of operation. Without sanitation it is

impossible to control diseases of dairy cattle. Eliminate all wet and marshy areas

as well as any stagnant pools of water. Remove rocks, wire, boards or any

extraneous materials from buildings and pastures to minimize injury. All buildings

should be so constructed for easy cleaning and disinfecting. All persons who

travel from farm to farm should disinfect footwear upon entering and leaving the

premises. Control rodents, flies and insects. Keep animals segregated according

to age groups. Isolate immediately any animal that appears sick and call the

veterinarian early. Utilize the services of a veterinarian to treat sick animals.

Brucellosis and T.B. control programs should be a routine management practice.

Utilize available measures to keep external parasites to a minimum. The

veterinarian and herdsman should maintain a health and breeding record for

each animal. A more complete record is more useful for future reference.

Vaccination program should be instituted whenever indicated. For internal and

external parasite control, segregate according to age group, and do not

overstock pastures. For control of genital diseases use of artificial insemination,

only semen from bulls free of diseases should be used. Cows that abort should

be rebred only artificially, if a herd problem develops and several cows abort or

fail to settle call the veterinarian immediately.

28
Water Management

The cows should be given unlimited clean drinking water, and away from

contamination. The animals should be cooled by sprinkling or splashing them

with water during the hot hours of the day.

Production Site or Location

The proposed business will be situated in the town of Tanay, Rizal. The

land area is approximately 17.5 hectares, nearby Pililla River and away from the

residencial area of the town.

Plant size and Production Schedule

The land area of the proposed business is 150, 000 sq.m. or 15 hectares,

we are estimating the plant size of the animal shelter of 3.5 height 4m length and

2m width for every animals.

Table 4.6

Production or Operation Schedule per Cycle

Description of Activity No. Hours/day Man Power

Requirement
Milk Collection and 2hours 2
Packaging
Delivery 2
Quality Inspection 30min. 1

29
 Table 4.7

Animal Assumption

Breed of Quantity Production/day Price/liter Total Amount

Animal (Php)
Holstein 15 20 Liters Php38/ Liter Php11,400.00
Friesian

Table 4.8

Cost per Head

Breed of Animal No. of Head Unit Cost Total Cost of

Animal
Holstein Friesian 15 Php60,000 Php900,000

Figure 4.2

Holstein Friesian

30
Type of Pasture

The proponents will use cut and carry pastured, to make sure that dairy

cattle will be properly fed with good quality silage, some are Napier grass,

molasses, rice bran, and concentrate feeds these are for optimal growth to

produce enough milk that is equivalent with their weight.

Animal Pastured Area

The 150,000 sq. m, or 15 hectares of land in SitioBarbon, Brgy. Plaza

AldeaTanay, Rizal will be used as pasteurization area of the animals. The 3,000

sq. m. will be used for animal shelter, milking area, calf stalls, feeding and

production area and the remaining 147, 000 sq. m. will be used as propagation in

order to provide ample food for the animals.

Pasture Propagation

The land area was plentiful of grass but it cant support the animals daily

feeding consumption. It is necessary to have pasture propagation to meet the

animals food requirement to produce good quality milk. The land area, 147,000

sq.m. will be divided into 4 parts, 36,750 each quarter. The process of pasture

propagation shall be used:

1. Plant the whole area with grass when rainy season starts, or when rain is

regular.

2. The first quarter can be harvested after three months.

3. The second quarter can be harvested after consuming all the grass in the

first part of pasture, and so on.

4. The regrowth of the grass is 60 days.

31
 Figure 4.3

Schematic Plan of Housing for Dairy Cattle

32
15 Hectares

Figure 4.4

Pasture Area

33
Machineries and Equipment

Table 4.9

List of Machineries and Equipment

Name of Unit cost Quantity Total

Machineries and
Equipment
Milking Machine 70,000 1 70,000
Cooling Tank 150,000 1 150,000
L300 Van 200,000 1 200,000
Milk Can 5000 8 (sets) 40,000
Total 460,000

Table shows machineries and equipment with its corresponding cost to be

used in the operation of the proposed business.

34
 Figure 4.5

Milking Machine

35
 Figure 4.6

Milk Cooling Tank

36
Figure 4.7

Milk Can

37
 Table 4.10

List of Furniture and Fixtures

Name of Quantity Unit Cost (Php) Total Amount

Furniture and (Php)
Fixture
Tables and Chairs 1 set 3,000.00 3,000.00
File Cabinet 1 3,000.00 3,000.00
Shelves 2 2,000.00 4,000.00
Total 10,000.00

Table 4.11

List of Animal Stock and Supplies

Name of Description Quantity Unit Cost Total Amount

Inventory (Php) (Php)
Cattle (stock) Holstein Friesian 15 60,000.00 900,00.00
Seeds Napier grass and 2 bags 2,000.00 2,000.00
centrosena
Fertilizer 2 bags 3,500.00 7,200.00
Total 909,200

Table 4.12

Utilities Requirement

Utility Sources Estimated Annuity (Php)

Consumption (Php)
Water Tanay Water 2,000.00 24,000.00
District
Electricity Meralco 1,500.00 18,000.00
Telephone Globe Telecom 700.00 8,400.00
Total 50,400.00

38
Man Power Requirement

Table 4.13

List of Man Power Requirement

Position Function Qualification Quantity Salary

Manager Responsible Must be 1 10,500
for the overall physically and
organization mentally fit.
of the
business Must be a
including graduate of
decision any business
making, related
strategic courses,
planning, and having
developing supervisory
policies and and
procedures. managerial
experience.
Responsible
for marketing Having a good
and promotion personality.
of the product.
Dairy Man Responsible Must be 2 6,000
in taking care physically and
of the animals mentally fit
and fresh milk
production. Knowledgeable
about dairy
farming.
Care taker Responsible Must be 2 12,000
for cleanliness physically and
and mentally fit
orderliness of
the workplace Hard working.
and pasture
propagation
area.
Total 34,500

Table shows labor requirement, their function and responsibility as well as

their compensation in one month.

39
Production Cost

Table 4.14

List of Production Cost per Year

Product Consump No. of Total Cost Days Total

tion/Head Heads Consumption Consumption
Annually
Napier grass 53 kg 15 795 kg 1.50 300 357,750

Centrosema 10 kg 15 150 kg 1.50 300 67,500

Rice Bran 2.9 kg 15 43.5 kg 1.50 300 19,575

Total 65.9 kg 15 988.5 kg 1.50 300 444,825

Table 4.15

Feeds Consumption per Year

Product Consumption No. of Total Cost Days Total

/Head Heads Consumption Consumption
Annually
Concent 6 kg 15 90 kg 16 300 432,000
rates
Salt No Limit 15 - 10 365 3,650

Water No Limit 15 - - 365 -

Total 6 kg 15 90 kg 435,650

Table shows estimated total production cost that is equivalent to 880,475.

From daily production computed annually it shows the projected consumption of

animals in a year.

40
Waste Disposal Management

The researchers assure that the business proposal is eco-friendly. The

possible waste produced by the business are mostly biodegradable like manure

of cows which is good for the land as fertilizer it will be buried in a compost pit,

and for the non-biodegradable it will be segregated or sold on the junkshops.

Following package of practices must be employed at the livestock farms for

proper disposal of farm waste including dung, urine and waste fodder etc, to

improve the farm hygiene and to reduce the odor problems on dairy farms,

including proper selection of a farm site, general farm management and manure

land application techniques, and treatment of manure by chemical or other

means.

41
 Chapter 5

FINANCIAL FEASIBILITY

This part of the feasibility study of the proponents should present the

project cost, financiers, financial assumptions, projected financial statements for

the next five years and the analysis of the financial statements.

Total Project Cost

Table 5.1

Total Project Cost of NutriLfresco Dairy Farm

Items/ Description Amount/ Cost

Fixed Capital

Land (rent for 3 months) 15,000

Building 100,000

Machineries & Equipment 460,000

Furniture Fixture 10,000

Pre-Operating Capital

Working Capital (animal stock and 909,200

supplies)
Permit & Licenses 19,200

Cash on Hand 40,000

Total Project Cost 1,553,400

42
Financiers

Table 5.2

Capital Contribution of Partners

Name Percentage Capital Contribution

Iriz T. Calupas 34% 528,156

Maria Claudine F. Habal 33% 512,622

Mark Anthony M. Magtulis 33% 512,622

Total 100% 1,553,400

Financial Assumptions

1. The inventory of the cattle will increase two heads yearly.

2. There is an estimated 1% increase in utilities consumption per annum.

3. Permit fees and licenses will remain unchanged.

4. Tax rate is 30%.

5. Straight line method of depreciation will be used.

6. Production cost will increase by 2% per annum.

43
Financial Statements

Table 5.3

Pre-operating Period Balance Sheet

Assets

Current assets

Cash on Hand 40,000

Inventory and Supplies 909,200

Prepaid Rent 15,000

Other Assets 19,200

Total Current Assets 983,400

Fixed Assets

Building 100,000

Furniture and Fixture 10,000

Machineries and Equipment 460,000

Total Fixed Assets 570,000

Total Assets 1,553,400

Liabilities and Owners equity

Liabilities 0

Total Liabilities 0

Owners Equity

Calupas Contribution 528,156

Habal Contribution 512,622

Magtulis Contribution 512,622

Total Liabilities and Owners Equity 1,553,400

44
 Table 5.4

Pre-operating Cash Flow

Cash contributions 1,553,400

Total cash inflow 1,553,400

Less: cash disbursement

Land (rent for 3 months) 15,000

Building 100,000

Machineries and equipment 460,000

Permit and licenses fees 19,200

Inventories and supplies 909,200

Furniture and fixture 10,000

Total cash disbursement 1,513,400

Ending cash balance 40,000

45
 Table 5.5

Nutri'Lfresco Dairy Farm

Projected Income Statement
For the year ended December 31, 2016-2020
Schedule 2016 2017 2018 2019 2020
Sales 3,410,000 3,410,000 3,870,000 3,870,000 4,330,000
Less:
Cost of Sales 900,000 - - - -
Gross Sales 2,510,000 3,410,000 3,870,000 3,870,000 4,330,000
Less:
Cost of Production A 880,475 898084.5 916046.19 934367.1138 953054.4561
Salaries and Wages B 414,000 414,000 414,000 414,000 414,000
Rent Expense 60,000 60,000 60,000 60,000 60,000
Utilitiy Expense C 50,400 50,904 51,413.04 51,927.1704 52,446.4421
Supplies Expense D 9,200 9,200 9,200 9,200 9,200
Advertising Expense 8,000 8,000 8,000 8,000 8,000
SSS/Phil Expense E 37,398 37,398 37,398 37,398 37,398
Organization Expense F 19,200 19,200 19,200 19,200 19,200
Gas and Oil xpense G 150,000 150,000 150,000 150,000 150,000
Other Expense H 40,000 40,000 40,000 40,000 40,000
Depreciation Expense I 57,800 57,800 57,800 57,800 57,800
Total Operating Expense 1,726,473 1,744,587 1,763,057 1,781,892 1,801,099
Net Profit Before Tax 783,527 1,665,414 2,106,943 2,088,108 2,528,901
Income Tax Expense 235,058.1 499,624.05 632,082.83 626,432.31 758,670.33
Net Income After Tax 548,469 1,165,789 1,474,860 1,461,675 1,770,231

46
 Table 5.6

Nutri'Lfresco Dairy Farm

Statement of Owner's Equity
For the year ended December 31, 2016-2020
Calupas (34%) Habal (33%) Magtulis (33%) Total
2016
Capital Cont. 322,277.5 312,798.75 312,798.75 947,875
Add Net Income 186,479.46 180,994.77 180,994.77 548,469
Total 508,756.96 493,793.52 493,793.52 1,496,344
Less: Withdrawal
2017
Capital Cont. 174,468.96 169,337.52 169,337.52 513,144
Add Net Income 396,368.26 384,710.37 384,710.37 1,165,789
Total 570,837.22 554,047.89 554,047.89 1,678,933
Less: Withdrawal
2018
Capital Cont. 538,877.22 523,027.89 523,027.89 1,584,933
Add Net Income 501,452.4 486,703.8 486,703.8 1,474,860
Total 1,040,329.62 1,009,731.69 1,009,731.69 3,059,793
Less: Withdrawal
2019
Capital Cont. 1,008,369.96 978,712.02 978,712.02 2,965,794
Add Net Income 496,969.5 482,352.75 482,352.75 1,461,675
Total 1,505,339.46 1,461,064.77 1,461,064.77 4,427,469
Less: Withdrawal
2020
Capital Cont. 1,469,707.12 1,426,480.44 1,4264,80.44 4,322,668
Add Net Income 601,878.54 584,176.23 584,176.23 1,770,231
Total 2,071,585.66 2,010,656.67 2,010,656.67 6,092,899
Less: Withdrawal
47
 Table 5.7

Nutri'Lfresco Dairy Farm

Projected Cash Flow Stement
For the year ended December 31, 2016-2020
2016 2017 2018 2019 2020
Operating Activities
Sales 3,410,000 3,410,000 3,870,000 3,870,000 4,330,000
Less: Cash Disbursement
Cost of Sales 900,000
Cost of Production 880,000 898,084.50 916,046.19 934,367.11 953,054.46
Salaries and Wages Expense 414,000 414,000 414,000 414,000 414,000
Rent Expense 60,000 60,000 60,000 60,000 60,000
Utilities Expense 50,400 50,904 51,413.04 51,927.17 52,446.44
Supplies Expense 9,200 9,200 9,200 9,200 9,200
Advertisement Expense 8,000 8,000 8,000 8,000 8,000
SSS/Phil Expense 37,398 37,398 37,398 37,398 37,398
Organizational Expense 19,200 19,200 19,200 19,200 19,200
Gas and Oil Expense 150,000 150,000 150,000 150,000 150,000
Other Expense 40,000 40,000 40,000 40,000 40,000
Tax Expense 316,058 580,624.05 723,882.83 718,232.31 861,270.33
Net Cash from Operation 525,743.90 1,142,589.45 1,440,859.94 1,427,675.40 1,725,430.77
Investing Activities
Building 100,000 10,000 10,000 10,000 10,000
Equipment 460,000 50,000 50,000 50,000 50,000
Furniture and Fixture 10,000
Net Cash From Investment 570,000 60,000 60,000 60,000 60,000
Financing Activities
Additional Capital
Add beginning Balance 40,000 (4,256.10) 1,078,333.35 2,459,193.29 3,826,868.69
Ending Cash Balance (4,256.10) 1,078,333.35 2,459,193.29 3,826,868.69 5492299.46
48
 Table 5.8

Nutri'Lfresco Dairy Farm

Projected Balance Sheet
For the year ended December 31, 2016-2020
2016 2017 2018 2019 2020
Assets
Current Assets
Cash (4,256.10) 1,078,333.35 2,459,193.29 3,826,868.69 5492299.46
Prepaid Rent 60,000 60,000 60,000 60,000 60,000
Inventory and Supplies 909,200 9,200 9,200 9,200 9,200
Other Assets 19,200 19,200 19,200 19,200 19,200
Total Current Assets 984,143.90 1,166,733.35 2,547,593.29 3,915,268.69 5,580,699.46
Fixed Assets
Building 100,000 100,000 100,000 100,000 100,000
Furniture and Fixture 10,000 10,000 10,000 10,000 10,000
Machineries and Equipment 460,000 460,000 460,000 460,000 460,000
Gross Fixed Assets 570,000 570,000 570,000 570,000 570,000
Less: Accumulated Depreciation 57,800 57,800 57,800 57,800 57,800
Net Fixed Asssets 512,200 512,200 512,200 512,200 512,200
Total Asset 1,496,343.90 1,678,933.35 3,059,793.29 4,427,468.69 6,092,899.46
Liabilities
Owner's Equity
Calupas 322,277.47 174,469.08 538,877.32 1,008,369.85 1,469,707.28
Habal 312,798.72 169,337.64 523,027.99 978,711.92 1,426,480.59
Magtulis 312,798.72 169,337.64 523,027.99 978,711.92 1,426,480.59
Add Net Income 548,469 1,165,789 1,474,860 1,461,675 1,770,231
Total Equity 1,496,343.90 1,678,933.35 3,059,793.29 4,427,468.69 6,092,899.46
Total Liabilities and Owner's Equity 1,496,343.90 1,678,933.35 3,059,793.29 4,427,468.69 6,092,899.46
49
Financial Analysis

The Information provided in the financial statements are significant to the

stockholders of the firm. Analysis of the financial statement is based on the use

of ratios or relative value.

Table 5.9

Computed Gross Profit Margin for the Next Five Years

2016 2017 2018 2019 2020

Gross Sales 2,510,000 3,410,000 3,870,000 3,870,000 4,330,000

Sales 3,410,000 3,410,000 3,870,000 3,870,000 4,330,000

Gross Profit 0.74 1 1 1 1

margin

Table 5.9 shows that in year 2016, 74% of sales will remain and 26% will

go to cost of goods sold.

Table 5.10

Computed Operating Profit Margin for the Next Five Years

2016 2017 2018 2019 2020

Operating 783,527 1,665,414 2,106,943 2,088,108 2,528,901

Income
Sales 3,410,000 3,410,000 3,870,000 3,870,000 4,330,000
Operating profit 0.23 0.49 0.54 0.54 0.58
margin

Table 5.10 shows that after deducting all operating expenses from 2016 to

2020, 23%, 49%, 54%, 54% and 58% of sales will remain, respectively.

50
 Table 5.11

Computed Net Profit Margin for the Next Five Years

2016 2017 2018 2019 2020

Net 548,469 1,165,789 1,474,860 1,461,675 1,770,231

Income
After Tax
Sales 3,410,000 3,410,000 3,870,000 3,870,000 4,330,000

Net Profit 0.16 0.34 0.38 0.38 0.41

Margin

Table 5.11 shows that after reducing tax expense, 16%, 34%, 38%, 38%

and 41% of sales will remain from year 2016 to 2020 respectively.

Table 5.12

Computed Return on Assets for the Next Five Years

2016 2017 2018 2019 2020

Net 548,469 1,165,789 1,474,860 1,461,675 1,770,231

Income
After tax
Total 1,496,343.90 1,678,933.35 3,059,793.29 4,427,468.69 6,092,899.46
Assets
Return on 0.37 0.69 0.48 0.33 0.29
Assets

Table 5.12 shows that in year 2016,assets will generate 37% of income.

51
 Table 5.13
Computed Return on Investment for the Next Five Years

2016 2017 2018 2019 2020

Net Income 548,469 1,165,789 1,474,860 1,461,675 1,770,231

After tax
Total 1,496,343.90 1,678,933.35 3,059,793.29 4,427,468.69 6,092,899.46
Investment
Return on 0.37 0.69 0.48 0.33 0.29
Investment

Table 5.13 shows that in year 2016, for every 1 peso investment it

generates 37% income.

Table 5.14

Computed Return on Equity for the Next Five Years

2016 2017 2018 2019 2020

Net 548,469 1,165,789 1,474,860 1,461,675 1,770,231

Income
After tax
Owners 1,496,343.90 1,678,933.35 3,059,793.29 4,427,468.69 6,092,899.46
Equity
Return 0.37 0.69 0.48 0.33 0.29
on
Equity

Table 5.14 shows that in year 2016, 37% of the net profit is earnedby the

owners equity.

52
Payback Period

Payback Period refers to the period of time required for the return on

investment to repay the sum of initial investment.

Initial Investment
Payback period=
Average Annual Cash Flow

Ending Cash Flow Y1 to Y5 BeginningCash

Average Annual Cash Flow= Balance Y1

Number of Years

(-4,256.10 + 1,078,333.35 + 2,459,193.29 +

3,826,868.69 + 5,492,299.46) - 40,000
=
5 Years

12,852,438.69 40,000
=
5 Years

Average Annual Cash Flow= 2,562,487.7

1,553,400
Payback Period =
2,562,487.7

= .6 or 7 months

53
 Schedule

Schedule A

Cost of Production

Product Consumption No. of Total Cost Days Total

/Head Heads Consumption Consumption
Annually

Napier grass 53 kg 15 795 kg 1.50 300 357,750

Centrosema 10 kg 15 150 kg 1.50 300 67,500

Rice Bran 2.9 kg 15 43.5 kg 1.50 300 19,575

Concentrates 6 kg 15 90 kg 16 300 432,000

Salt No Limit 15 - 10 365 3,650

Water No Limit 15 - - 365 -

Total 880,475

Schedule B
Salaries and Wages

Quantity Salary (Php) Total Annuity

Salary/month
Manager 1 10,500.00 10,500 126,000

Dairy Man 2 6,000.00 12,000 144,000

Care taker 2 6,000.00 12,000 144,000

Total 414,000

54
 Schedule C

Utilities Expense

Utility Sources Estimated Annuity (Php)

Consumption
(Php)
Water Tanay Water District 2,000 24,000
Electricity Meralco 1,500 18,000
Telephone Globe Telecom 700 8,400
Total 50,400

Schedule D

Supplies

Name of Description Quantity Unit Cost Total Amount

Supplies (Php) (Php)
Seeds Napier grass and 2 bags 2,000 2,000
centrosema
Fertilizer - 2 bags 3,500 7,200
Total 9,200

Schedule E

SSS/ PhilHealth

Monthly Contribution Annuity (Php)

(Php)
SSS 2,591.50 31,098
PhilHealth 525 6,300
Total 37,398

55
 Schedule F

Organization Expense

Business License Permit 16,000

Mayors Permit 1,500

Sanitary Permit 800

Garbage Fee 700

Zoning Fee 400

Fire 300

Total 19,200

Schedule G

Gas and Oil

Expense Amount

Gas and Oil 150,000

Schedule H

Other Expense

Veterinary Fee 30,000

Veterinary Medicine 10,000

Total 40,000

56
Depreciation

Annual Depreciation = Cost Scrap Value

Estimated Useful Life

Annual Depreciation = 100,000 - 500

10 years
Annual Depreciation = 9,950

Table 5.15

Depreciation Cost of Building

Year Annual Depreciation Accumulated Book Value

Depreciation
100,000 (Acquisition cost) 0 100,000
1 9,950 9,950 90,050
2 9,950 19,900 80,100
3 9,950 29,850 70,150
4 9,950 39,800 60,200
5 9,950 49,750 50,250
6 9,950 59,700 40,300
7 9,950 69,650 30,350
8 9,950 79,600 20,400
9 9,950 89,550 10,450
10 9,950 99,500 500

Annual Depreciation = 10,00 - 500

= 1,900
5 years

Table 5.16

Depreciation Cost of Furniture and Fixture

Year Annual Depreciation Accumulated Book Value

Depreciation
10,000 (Acquisition Cost) 10,000
1 1,900 1,900 8,100
2 1,900 3,800 6,200
3 1,900 5,700 4,300
4 1,900 7,600 2,400
5 1,900 9,500 500

57
 Annual Depreciation = 460,000 - 500
= 45,950
10 years

Table 5.17

Depreciation Cost of Machineries and Equipment

Year Annual Depreciation Accumulated Book Value

Depreciation
460,000 (Acquisition Cost) 460,000
1 45,950 45,950 414,050
2 45,950 91,900 368,100
3 45,950 137,850 322,150
4 45,950 183,800 276,200
5 45,950 229,750 230,250
6 45,950 275,700 184,300
7 45,950 321,650 138,350
8 45,950 367,600 92,400
9 45,950 413,550 46,450
10 45,950 459,500 500

Schedule I

Total Depreciation Cost

Building 9,950
Machineries and Equipment 45,950
Furniture and Fixture 1,900
Total 57,800

58
 Chapter 6

SOCIO-ECONOMIC FEASIBILITY

This chapter presents the contribution of the business to the National and

Local economy, government, industry, community and employees.

Contribution to the Economy

The proposed business do not focuses only on profit but it also aims to

contribute to the socio-economic stability of the society. It will aid to lessen the

level of unemployment rate in the country.

Contribution to the Government

The business can help the government through payments of the legal

requirements needed such as permits, taxes and other registration fees. These

payments are part of the revenue collection of the government which is used for

public purposes and public expenditures.

Contribution to the Community

The proposed business will create an added job opportunity in the

community and contribute to the income of the community.

Contribution to the Industry

The proposed business will be an instrument in promoting dairy industry in

the locality.

59
Contribution to Employees

The establishment of the proposed business will generate job

opportunities to the people of the locality, it will give employment, and help

people to have source of income. The proposed business also offers benefits like

SSS and PhilHealth for their security.

60
 Chapter 7

TIME TABLE AND PROJECT IMPLEMENTATION

This chapter presents the schedule of activities and time frame in the pre-operating period of the proposed

business.

Table 7.1

Gantt Chart of NutriLfresco Dairy Farm

June July August September October November

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1. Conceptualization
2. Formulation of Business Plan
and Management Plan
3. Hiring of Employees
4. Land Acquisition
5. Construction of Building
and Animal Houses
5. Purchase of Machineries
and Equipment
6. Advertising Period
7. Opening of the Production

61
 Table 7.2

Project Implementation and Time Table

Activities Months Number of Weeks

1. Conceptualization June 2 weeks

2. Formulation of June 4 weeks

Business Plan and
Management Plan
3. Hiring of Employees July 4 weeks

4. Land Acquisition August 2 weeks

5. Construction of Building August 5 weeks

and Animal Houses
6. Purchase of September 3 weeks
Machineries and
Equipment
7. Advertising Period September 9 weeks

8. Opening of the November 4 weeks

Production

62
 Chapter 8

CONCLUSIONS AND RECOMMENDATIONS

This chapter presents the perceived problems, conclusion and

recommendation.

Perceived Problem

The proponent may encounter the following problems which may affect

the operation of the business:

1. Resistance, misunderstanding and disagreement of employees to the

manager.

2. Conflict between employees.

3. Production is affected by seasonal variations.

4. Increased production cost.

The firm and organization may encounter these problems, these

uncontrollable things during the operation. One way is to estimate these

problems and plan for the necessary solution that corresponds to these

problems.

63
Recommendation

The proponent recommends the following recommendation to estimate

and minimize these problems:

1. The business must observe respect to each others opinion and

practice a good human relationship.

2. The employees must learn to obey the rules and regulation of the

business and policies given by the manager.

3. The manager must be open for the suggestion of the workers.

4. There must be incentives given to workers to motivate and to keep

them job-oriented.

Conclusions

The proponent concludes that during the operation of the business they

must possess intelligence in the decision-making process and they must think of

a good solution of these problems that will occur in the near future. The

researchers also conclude that the proposed business is feasible, presented and

justified in the financial profitability, and provided that there are proper

management, production and technical strategies applied for the proposed

business.

64