FEASIB - Chapter 1 (Sample)
FEASIB - Chapter 1 (Sample)
Professor:
VEGGIE JELLY
Chapter One: Project Summary
A. Name of Enterprise
B. Location
C. Descriptive Definition of the Project
D. Project Objectives
E. Feasibility Criteria
F. Highlights of the Project
G. Major Assumptions and Summary of Findings
The acronym VDV came from the initials of our surnames. We chose our
B. LOCATION
Business is located at P. Visitacion St. Kalawaan, Pasig City by the roadside, just 2
minutes away from village church (Sta. Martha Parish Church) and 5 minutes away from
school (Kalawaan Elementary School) which will be our target consumers. It is
accessible to public market (Pasig Market) and supermarket (FCM Supermarket) for our
readily available ingredients and materials of the product. Means of transportation can
be either tricycle or jeep. The cost of the rental is P4,500 monthly. The size of the land is
54 square meter.
government-initiated program in providing safety to consumers about the foods they eat.
REPUBLIC ACT NO. 10068
AN ACT PROVIDING FOR THE DEVELOPMENT AND PROMOTION OF ORGANIC
AGRICULTURE IN THE PHILIPPINES AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
Section 1 Title. - This Act shall be known as the "Organic Agriculture Act of 2010".
Section 2 Declaration of Policy. - It is hereby declared the policy of the State to
promote, propagate, develop further and implement the practice of organic agriculture in
the Philippines that will cumulatively condition and enrich the fertility of the soil, increase
farm productivity, reduce pollution and destruction of the environment, prevent the
depletion of natural resources, further protect the health of farmers, consumers, and the
general public, and save on imported farm inputs. Towards this end, a comprehensive
program for the promotion of community-based organic agriculture systems which
muscovado sugar, fresh bananas, banana chips, desiccated coconut, banaba leaves
and virgin coconut oil. Other organic products are chicken, vegetables, vinegar, rice,
eggs, mango products, juices, herbal teas/supplements, coffee, fruit juices, cocoa,
culinary herbs/ spices, among others. The organic industry in the Philippines is still
considered to be in its infancy or emergent stage. Its development and promotion have
been spearheaded by the private sector, non-government organizations (NGOs) and
people's organizations. More recently, efforts to develop the sector have expanded with
the active participation of the government and sustained collaboration among
stakeholders.
Majority of organic producers supplying the domestic market are community- based,
small and medium enterprises spread out in various parts of the country. Exporters to
the foreign market include multinationals, medium and large- scale companies based in
Mindanao, Negros, Central and Southern Luzon. Enterprises obtain their organic
certification from a local certifying body like the Organic Certification Center of the
Philippines (OCCP) or international certifiers which may have tie-ups with locally-based
inspectors. Other groups that cater to the local market install their internal control
system among their constituents to guarantee the products as organic or in the process
of becoming organic. The global organic market was estimated at US$27.8 billion in
2004, up from US$23 billion in 2002. Global sales was expected to expand by US$2.4
billion in a year, equivalent to a 9% annual growth rate, and would have reached US$
30 billion in 2005. The European Union (EU) accounted for 49.3% of total sales
worldwide while North America accounted for 46.7% in 2004, or a total of 96% for the
two regions. In terms of country sales, the U.S. is the leading market, followed by
Germany, United Kingdom, Italy, France and Switzerland. Organic food has no
Harmonized System (HS) classification and is not registered by the local Customs
Bureau. Thus, there are no official trade statistics on export volume and value for local
organic products. For the Philippines, unofficial estimates placed the export value for
organics at US$10 million or more in 2003, and at an estimated 20% annual growth
rate, it would have reached US$18 million or more in 2006. The bulk of organic food
export is undertaken by companies which produce organic versions of their
conventional products such as desiccated coconut, fresh Cavendish and balangon
bananas, banaba leaves, banana chips and virgin coconut oil. Major export markets are
Japan, U.S.A., Canada and Europe. (Reference: www.philexport.ph)
The project promotes the processing of vegetables. The reasons for this include:
Attempts to preserve seasonal supply of vegetables which often lie rotting
on the roadside.
Difficulties in storing large quantities of fresh produce without incurring
heavy losses.
Small local markets for the large quantities of fresh produce in season.
Ineffective distribution and transportation to meet demand in other, often
urban, areas.
Due to the above constraints, rural producers are often forced to give produce away
or let it rot. To prevent this loss, many may be tempted to convert such gluts into
value-added products to be sold in the urban areas.
D. LONG-RANGE OBJECTIVES
Cases such as Jollibee and Tony Tan, he introduced children highly addictive products
(like fast food, toys, & childhood memories in his playground). Throughout the years
those children grew up to become adults who bring their own children to his fast food
chain. This fact is the basic secret to his success.
VDV Enterprise attempts to practice the same marketing strategy. Introducing nutritious
vegetable flavoured snacks to children. Veggie Jelly might have the same effect with
children (that will in turn become adults that will feed their own children Veggie Jelly!!!).
Veggie Jelly will also be a well-known product that will be a success not only to VDV
Enterprise but also with the country.
E. FEASIBILITY CRITERIA
Before we came up with the idea of creating the product we considered about
conducting a market survey by going out into areas where we expect to find
consumers and asking people for their views. Giving consumers information about
the product and its quality; and information about the expected number of people will
buy, how often and for what price have to be considered in producing this type of
product. This should be a short exercise to keep the costs low and in-depth market
research is not necessary for most products. A convenient way of doing this is to
prepare simple questionnaires which can be used by us to remind ourselves of
which questions to ask.
There is now a great demand for organic products. The market for growing "organic"
produce is making a niche given the growing number of health-conscious
consumers and ecological farmers.
The Department of Agriculture (DA) led by Secretary Proceso J. Alacala, an
advocate of organic agriculture and one of the principal authors of the Organic
Agriculture Act (OAA) of 2010, has been pushing and encouraging local farmers to
go organic promoting not only its potentials to feed a healthy population but also its
sustainable and ecological benefits to the world.
Organic agriculture as a priority program of Department of Agriculture, initiatives and
efforts to promote sustainable and ecological agriculture have been incorporated in
the Medium Term Philippine Development Plan (MTPDP) for 2011-2016 as part of
the government's overall anti-poverty strategy.
This was further strengthened when the OAA of 2010 (RA 10068) was enacted into
law, which after much deliberations and consultations with the stakeholders was
approved and adopted in January 30, 2011.
Under this law, the Bureau of Agricultural Research (BAR), as the Research &
Development and Extension (RDE) unit of DA, was tasked to create and organize an
Organic Agriculture RDE Network composed of research and educational
institutions, local government units (LGUs), non-governmental agencies, and
recognized associations of interest groups such as organic fertilizer manufacturers
and distributors, agricultural engineers, agriculturists, soil technologists, and
farmers. This is in accordance to its mandate and commitment to consolidate,
strengthen, and develop the agriculture and fishery R&D system for the purpose of
improving its effectiveness and efficiency. Socio-economic concerns refer to issues
on cost of production, marketing and product distribution systems, labour expenses,
consumer
preferences,
awareness
building
and
information
campaigns,
in exploring nutritious food that they desperately need. Both extremes of childhood
eating disorders are quiet alarming.VDV Enterprise has realized this problem for this
reason Veggie Jelly was invented.
2. Data Gathering
3. Introduction
4. Objectives
Short term
Longterm
5. Name of The Product
6. Management Aspect
7. Technical Aspect
Process Flow
Nutritional Facts
Packaging
8. Product Costing
July 7,
2015
July 8,
2015
July 11,
2015
July 12,
2015
July 26,
2015
July 28,
2015
July 30,
2015
9. Marketing Strategy
10. Final Product
substance, Veggie Jelly can fulfill a childs optimum dietary needs. Veggie Jelly does not
have any artificial coloring, artificial flavors, and added preservatives.
The public is becoming increasingly aware of the importance of healthy nutrition for
general health and overall well-being. Processed foods which are high in saturated fats,
sugar and sodium, and low in essential nutrients are not only responsible for overweight
problems but have been also shown to be major contributors to a number of health
problems including diabetes, high blood pressure and heart disease. To make things
worse, there are also various artificial preservatives, flavor enhancers and a number of
other chemicals with dubious effects on health. But on the other hand, unprocessed
foods are not as healthy as they seem to be either because most of them are
conventionally grown which means with the use of pesticides, chemical fertilizers,
antibiotics, growth hormones and who knows what else. Fortunately, there is a safer
and healthier alternative organic food.
Critics claim that there are not enough evidence for organic food being either healthier
or safer than the conventional one, however, the organic farming methods speak for
themselves. The main idea of organic food production is avoidance of all non-organic
farming methods which means that the use of pesticides, artificial fertilizers, antibiotics,
growth hormones and similar things is strictly forbidden. Instead, organic food producers
use all natural farming methods such as crop rotation, composting, companion planting,
stimulating biodiversity, etc. As a result, organic products pose no risk of pesticide
residues nor presence of other potentially harmful chemicals. Organic food products
also are not allowed to contain any genetically modified ingredients nor artificial
additives. Although conventionally grown food is claimed to be safe, absence of all non-
natural ingredients makes organic food without a doubt a healthier and safer choice
because the long term effects of those safe doses of pesticides, preservatives and
other chemicals remain unknown. They may be harmless but they may be also
seriously harmful. Why take the chance if you do not have to?
The main advantage of organic food is without a doubt absence of all non-natural
ingredients but the benefits of organic food for health do not end here. Due to the fact
that organic food products must not contain any artificial preservatives their shelf life is
much shorter. This is particularly important when it comes to fresh fruits and vegetables
which start to lose nutritional value the same moment they are harvested. And it is the
shorter shelf life that makes organic fruits and vegetables more nutritious because they
have to be consumed relatively soon in contrary to conventionally grown ones which
look like they were just harvested for weeks or even months. As a result, organic food
provides considerably greater amounts of essential nutrients which play the key role in
human health.
In addition to direct health benefits, organic food offers a number of indirect but just as
important positive effects on both human health and the environment. Since organic
food production strictly forbids the use of hazardous chemicals, there is no risk of soil or
water contamination which does not just affect the population living nearby conventional
farms but wider areas as well. (Reference: www.eostreorganics.co.uk)
4. Mode of financing
Personal savings of both entrepreneurs will be used in financing the business. The
product to be introduced in the market does not require a lot of money. Both partners
agreed to contribute an equal sharing of capital in amount of P15,000 each, with a total
of P30,000. This money will be use for the expenses and operation of the business.
5. Investment costs
G. MAJOR ASSUMPTIONS
CONCLUSION
USED
AND
SUMMARY
OF
FINDINGS
AND
1. Market Feasibility
Based on our research, there is no such jelly made from vegetable that is currently
available in the market. We have only seen candies. So since jelly can be eaten easily
by young and adults, we have chosen it to be the main ingredient of our vegetable
business. Some also said that it is convenient and easy for them to eat vegetables and
that is through jelly. They could eat vegetables which is the best cure for a lot of
sickness.
2. Technical Feasibility
Mixing the juice of the vegetable and the gelatin is not that hard but the combination of
these ingredients is far more complicated. The ingredients are not that hard to find, only
the combination of them. The effects of the ingredients as well as the taste of it are our
main concern. So in this aspect, we will need a food technology specialist to help us
work with it.
3. Financial Feasibility
The initial investment of VDV Enterprise for this project is P30,000 which came from
partners contribution to establish this project.
4. Socio-economic Feasibility
The proposed project aims to help our localities and farmers of the country and to give
healthy lifestyle to the people. Nowadays it is important that small entrepreneurs should
realize the worth-innovating and starting a business that would largely contribute to the
socio-economic development of the country. In this certain project, the researchers
consider the whole part of the business especially the social impact.
5. Management Feasibility
VDV Enterprise is a partnership form of business ownership which will handle the
management of the business. There is a production manager who will be in charge for
the day-to-day operation of the business. At the present, the business has one (1)
Production Manager, one (1) Financial Manager and one (1) Distribution Manager.
These three (3) are the investors for this project. As the business grows, new
employees will be hired for the minor business operations. Through an organizational
structure, there will be a smooth operation of the business and also based on the
technical know-how of the managers, therefore, this business is feasible in this aspect.