A FEASIBILITY STUDY OF THE INAUGURATION OF PASYALUBONG CENTER IN

GENERAL SANTOS CITY

_______________________________________________________

A Feasibility Study

Presented to Ms.Jenly Rose B. Botes and Ms. Rose Anne M. Jintula

Of Notre Dame of Dadiangas University

Integrated Basic Education Department

____________________________________________

In partial fulfilment of the requirements

In Business Finance and FABM 2

______________________

By

Pedragosa, Selwyn Ryan D.

Templado, Simplicity Jade

Sarrosa, Rhea Dona G.

Romaob, Rayhanah T.

Hape, Sharlene D.

Sayson, Lyndsy L.

Yu, Danny Neil O.

August 2019
 CHAPTER 1

INTRODUCTION

Background of the Study

Recently, PasyalubongCenter business has become popular business and had

increase rate in business sector. Especially now, before going on a trip, you have already

probably heard your colleagues or friends and even your family ask for a pasalubong. As

a Filipino, it is our practice to bring something that we give to our loveones once we go to

a trip or even before we go home from work. When giving a pasalubong, the distance or

the period of how long you were gone does not matter-what matter is you bring home

something that was part of your trip and share them the memories and the emotions you

felt during your trip through a little bundle of trinkets or food. You also shared the culture

of a particular place where you bought that pasalubong.

The researchers want to put up a business like PasyalubongCenter since as they

have observed, most of the Filipinos love buying pasalubongsand for that, the

researchers want to showcase their products to those pasalubong-buyers. The

researchers consider General Santos City to have a great potential for this kind of

business since it will benefit the generals,filipinos from other cities and as well as the

foreigners, they love buying pasalubongs and it will be easier for them to buy good-quality

products in General Santos City. The researchers intend to conduct a feasibility study to

determine the possibility of putting up a PasyalubongCenter in General Santos City as

well as to develop marketing strategies for the proposed business.

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Rationale

General Santos City is considered as the 1st class highly urbanized city with an

increasing population of 594,446 based on the 2015 Census study and for the 2019 voting

elections it reached up to 301,106. It is located in the southern part of the Philippines

specifically in South Cotabato, Region XII and is the center for commerce and industry of

the SOCKSARGEN region.

According to the Sunstar Philippines posted by Claire Marie Algarme, buying or

bringing pasalubong is one of the Filipino tradition in which is a form of gift acquired from

a particular place given to people left behind. Souvenir items serve as a reminiscence of

our journey. The word “souvenir” is a French word that means remembrance or memory.

I buy keepsakes for myself to help me recall scenes in my trip. It’s a wonder how much

breadth of memories are attached to those tiny items and how, after so many years, they

can evoke a smile or a recollection of a travel experience. A pasalubong is something you

give out to let other people know that they were remembered while you were on the road.

It’s as if you have made them part of your voyage. And through that gift, you also want

them to remember you, even in your absence.

The Pasyalubong Center, will offer a great deals of souvenirs and foods that came

from our country and also within our province that can help promote our country’s hidden

treasure and beauty that can amaze tourists with our creative minds in doing crafts and

foods. The said business will operate daily, Monday- Friday 7:30 am- 10:00pm and in the

weekends, 7:30 am- 12 midnight. This PasyalubongCenter will help us to promote our

culture and traditions and also it can preserve our creativeness to others.

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 The proposed business will not just focus on the crafts based on the traditions and

cultures of our country, the said business will also sell things according to the trend and

likes of the teenagers nowadays. The business will not just focus on the crafts itself, it will

also make foods that certainly can catch up the cravings of the tourists. The yummy foods

is also based within our famous foods her in Gensan.

The PasyalubongCenter has it unique features that everyone will like because it

can cater a lots of people and it is not just an ordinary pasalubongcenter, it has a foodcourt

for them to stay and rest while waiting for their ordes to be served. The business will not

just sell ready-to-go foods, it will also sell hot foods. The business will have an edge

compared to others because of its reasonable and affordable price.

Scope and Delimitation

The researchers’ concern is to determine the feasibility study of the Pasyalubong

Center which is an merchandising business in General Santos City. The study will handle

the attainability of Pasyalubong Center that is situated at Ground Floor, Daproza Building,

Corner Pendatun Avenue, Lungsod ng General Santos. The competitors that the firm will

consider its merchandising business that is located inside the region of General Santos

City. The study is delimited for the first semester of the scholarly year 2019-2020 of Notre

Dame of Dadiangas University.

CHAPTER 2

THE INDUSTRY
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This chapter discusses the industry as a whole. It tackles about the services

offered by the company, major players of the industry, capacity of the industry, key

success factors, the market and the government.

2.1 Industry Background

One of the common or famous word we heard when your friends, families, and

relatives go out on a trip outside and in the Philippines is the word “pasalubong” or other

may call it as souvenirs or gifts. According to Ethnic Groups of the Philippines (2016),

Pasalubong is sort of a travel gift that can come in different forms, including food,

delicacies, and trinkets. It can be anything that can make a loved one back home happy;

any present, big or small, is always appreciated. Pasalubong represents the value that

Filipinos hold for family. Bringing something back to our loved ones, even though it is not

mandatory, comes naturally with our desire to share our experiences and bring a piece

of it to them. Pasalubong is also a way of telling a person that he or she is remembered

and important to the person who gave the pasalubong to him or her.

2.1.1. International

Pasyalubong Centeris also located to many parts outside the country. The

company itself established some institutions internationally so that the Philippines’

delicacies, culture, tradition and creativeness will be known from other countries.

According to Wong (2012), being creative is not an exclusive trait possessed only by

Filipinos, what makes there distinct is the artistry, expressiveness, spontaneity, and

humor that altogether define Filipino creativity. Aside from the abundance of world-

renowned Filipino talents in music and the performing arts, our country is rich with visual

5
artists, fashion designers, animators and many other artists. Filipinos are making waves

in the international scene, particularly in the entertainment, creative, and design

industries.

2.1.2. National

PasyalubongCenterhas a lot of establishments here in the Philippines. Others are

located in the airport, malls, highways and terminals so that the tourists will easily find on

where to buy some pasalubong for their loved ones. The industry does not only sell foods

for pasalubongs, you can also buy something that you want from there like gifts for

birthdays, self-cravings, if you’re hungry and also to see the beauty and creativeness of

the Filipinos.

The company has many branches especially in Manila, Quezon, Baguio, Cebu,

Palawan, Bohol, Bacolod, Sarangani, Cotabato, Davao, Surigao, GenSan, Dumaguete,

and Tupi. The company also promotes the beauty and uniqueness of each Filipinos.

According to Grogan, M. (2016), Filipinos are probably the most giving people on

the planet,” these are the words of world-renowned Chef Anthony Bourdain, after he

recorded episodes of his television show in the Philippines. Bourdain is just one of the

millions of foreigners who have experienced firsthand from what we see as extraordinary

levels of generosity from Filipinos when compared to the vast majority of other cultures

around the world.

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My good friend Tom Graham, during his inspirational talks, shares the story of how a

Gawad Kalinga community on Bantayan Island (northern Cebu) hosted him as he traveled

across the Philippines during the Christmas of 2013.

2.1.3. Local

In General Santos there are many kinds of stalls or establishments that are selling

pasalubongs, but the Pasyalubong Center has the highest ratings of people’s choice in

buying pasalubongs. The pasalubongs have freshly made foods, types of souvenirs that

vary the different tribes here in General Santos according to their culture and traditions.

The company promotes the different tribes here in General Santos in the way of selling

the things or foods they made and present it to other tourists or to the generals.

2.2. The Industry Services

These are numerous service businesses in the market and some of those

businesses offer the following service:

Food items. Pinoys are known for their love for food and this is also reflected in the

pasalubong we bring to loved ones. Sea ports and airports are always full of different food

products that are popular in the locality.

Collectibles. Filipinos are fund of buying some things that easily get their attention like

key chains, mugs and other collections that can be used and to make it as a display when

they go out or inside their houses.

Clothing. Most common thing that we saw inside the pasalubong centers are shirts based

on the places where you came from or where you travelled from. The shirt that the

7
company is selling has a high quality of cloth that everyone can comfortably wear it

anytime anywhere.

Accessories. Key chains, ballers, sun glasses, wallets, bags, mugs, souvenirs (based

on where you travelled or came from; for example you came from General Santos and

the accessories that you will saw is some tuna fishes), and many more.

2.3 Major Players of the Industry

This section focuses and discusses about the major players of the industry in

General Santos City. It also focuses on the five aspects such as management, market,

financial, and socio-economic aspect.

There are 2 major pasalubong centers in General Santos City. The researchers

looked into these major players namely Sweet Valley Pasalubong Station and Ellynes

Pasalubong Center.

Sweet Valley Pasalubong Station

This establishment is located at National Highway, Corner GSC Doctors Hospital.

It is one of the famous Pasalubong Centers in the city. This is one of our major players

that has the same business goal related to the researchers’ proposed business.

In management aspect, Sweet Valley is the registered brand of T.W.S Ventures

INC. Derived from the valley that surrounds Mt. Matutum in Tupi, South Cotabato. They

started their business by putting their products in Mini Stop and 7 Eleven branches in

Soccksargen area. In 2012, they have already opened their stores in Glamang, General

Santos City, Davao City and Caticlan. This business is also owned by prominent family
 9

in Soccsargen area. Today, they have lots of branches in General Santos City, Ilo-Ilo City,

Pasig City, Guimaras Island, Boracayisland and many more cities.

In marketing aspect, Sweet Valley Pasalubong Station offers dried tropical fruits

that are made only from the naturally sweet sun ripened fruits. The said products has

prices that starts from 100 pesos and up. They also have a promo of buy 1 take 1 of their

products.

Looking closely into technical aspect, the store has its cashier machine to make

the process of the business easier. They offer different kinds of dried fruits which are

made from the naturally sweet sun ripened fruits picked at full majority which are delicately

processed to provide an all natural healthy snack food. Each pack of Sweet Valley Dried

Tropical Fruit Mix is carefully selected to make sure that the customer get the best tasting

succulent, tender, premium quality products with the distinctive rich aroma and flavors of

freshly harvested tropical fruits from the root of the famous Mt. Matutum ,a famous

landmark in South Cotabato.

In financial aspect, Sweet Valley Pasalubong is one of the developing pasalubong

centers in the Philippines. Their premium-quality and affordable products attracted a lot

of people to buy in their store. As a result, it made this business venture a successful one.

In socio-economic aspect, the business pays its tax issued by the government ,

since business venture like Sweet Valley Pasalubong Station is required to pay their tax.

Ellynes Pasalubong Market

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 This establishment is located at Maduramente Building, National Highway,

General Santos City. This is one of the major players that has the same business goal

related to the researchers’ proposed business.

In the management aspect, Ellenys Pasalubong Market GenSan branch was

established in 2018. It is their main branch here in the Philippines. The owner of the said

business started the business by turning scrap tuna and salmon skin into a business

venture that she started back in 2008. This pasalubong market is really famous to all

Filipinos, as the products have been brought to other countries as well.

Looking in marketing aspect, EllenysPasalubong Market offers good-quality

products that are locally made. These products are affordable and delicious, and because

of this it attracted a lot of customers to buy from their store always.

In technical aspect, the business has its own cashier machine so it will help them

deal with their business transaction easily and fastly. They offer different kinds of

pasalubongs like tuna chicharon, banana chips, biscocho, dried fruits and many more.

These are usually the products that Filipinos buy to bring to their home as a gift for their

family and friends. The said products are really good-quality products that really satisfies

the customers’ cravings.

In financial aspect, the good setting of Ellenys Pasalubong Market as well as the

expansion and newness of this store proved that this business venture is really

successful. This is the result of the good reviews from the customers.

In socio-economic aspect, the business pays the tax issued by the government to

continue their business venture.

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2.4 Industry Analysis

This will discuss the barriers to entry, substitute, bargaining power to the

suppliers, and for the costumers.

2.4.1 Barriers to Entry

There are a lot of hindrances in putting this type of business. The following are

the possible barriers for the potential entrants of the business

 Location is the first barrier of the business. The location should be easily seen by

the costumers.

 Products, since there are Pasalubon gCenters in General Santos City, our
products should be unique and should showcase the specialties of the Generals.

 The business entails huge start-up capital in acquiring the raw, materials,
equipment, and for the construction of the establishment.

2.4.2 Barriers to Substitute

There are some existing PasalubongCenters in General Santos City that offers

different products. The researchers identified three (3) substitutes: Sweet Valley,

Pasalubong Station, and Elyness. Customers can avail some products that the

Pasyalubong Center can offer.

2.4.3 Bargaining power to the supplier

The bargaining power of the supplier is high; because there are existing

pasalubong center here in General Santos City. Terms will be observed to ensure high

bargaining power. 10% of the total income of Pasyalubong Center would be given to the

supplier of the raw materials needed for the business.

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2.4.4 Bargaining power of the costumers

The bargaining power of the costumer is high because the Pasyalubong Center

would offer the best, unique, one of a kind products and delicacies costumers can avail.

The Pasyalubong Center will offer the specialties of the locals.

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CHAPTER 3

MANAGEMENT AND ORGANIZATION

The success of a business organization is often attributed to the management on

how they set objectives and make strategies to achieve the same. Management segment

covers all factors involved in managing the business such as providing an organizational

chart and defining duties and responsibilities lay-out within.

The management aspect should be considered in a business study. This is

to properly analyze that the most appropriate type of business organization, structure and

personnel qualifications that would best fit the planned business.

3.1 Form of Business Organization

Pasyalubong Center manufacturing business is intended to be one of the focused

associations in the district of the Mindanao. According to the civil code of the Philippines

article 1716, by the contract of partnership two or more individuals bind themselves to

contribute money, property, or Industry to a common fund with the intention of gaining

profit and partitioning it among the partners. The civil code enumerated what partners

may contribute and these are money, property, and industry. Properties to be shared can

be sub-classified into two which are the real and personal properties. All of the money,

Properties, and industries of each and every partner who contributed must be gathered

to a common fund with an intention to earn and must only be consumed for partnership

use. If the intention of partnership is not to earn, it shall not be perceived by the law if it’s

13
intention is to earn profit without dividing it with the other partners, the contract will not be

perceived by the law.

Limited partnership will be observed by the members of the business. Thus, the

liabilities of the members will only be delimited based on their capital contribution. The

Pasyalubong business will have one (2) general partners and five (5) limited partners.

Partnerships, like any other form of business organization have its sets of pros and

cons. Among the advantages of the corporation are the following:

1. Limited liability. The shareholders of a corporation are only liable up to the amount

of their investments.

2. Source of capital. A Publicly-held corporation in can raise substantial amounts by

selling shares or issuing bonds.

3. Ownership transfers. It is not especially difficult for a shareholder to sell shares in a

corporation.

4. Perpetual Life. There is no limit to the life of a corporation.

The disadvantages are as follows:

1. Double taxation. It may pay taxes on its income, after which shareholders pay taxes

any dividends received, income can be taxed twice.

2. The passing, retirement, withdrawal or insufficiency of an partner results in the

dissolution of the partnership.

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3. Disagreement between or among partners can lead to withdrawal of one or more

members.

4. Admission of a new partner depends upon the approval of the other partners.

3.2 Organizational Structure

An organizational structure is a system that outlines how certain activities are

directed in order to achieve the goals of an organization. These activities can include

rules, roles, and responsibilities. It also determines how information flows between levels

within the company. (www.Investopedia.com, 2015)

Figure 1 . Shows the proposed Organizational Structure of Pasyalubong Center

General Partners

Operation Manager Finance Officer Marketing Manager

Manufacturer Accountant Development Staff

Office Staff Cashier

Guard

Figure 1. Organizational Structure

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3.3 Personnel Qualifications

The performance of Employees who perform effectively get things done properly

the first time, morale in the office get a boost. The hiring and retaining qualified employees

is a task that needs to be completed with flying results. But most of the company lack in

that particular part of retaining those employees. Employees, who aren’t motivated to get

the job done as indicated, can bring down an entire department. It is important to foster a

positive, energetic and healthy work environment. Cultivating a positive work

environment can determine the success of a meeting, a workday or even your overall

success of the company.

Management should determine operationally certain minimal qualifications for all

staffs. The assurance of qualification is important not only for new employees but also for

current staff as they gain proficiency and engage in more challenging tasks. Also, it is

important to assess behavior in a specific task context. To ascertain whether a person is

qualified to perform a specific role. This measure will help to ensure that the knowledge

and skills of that a person claims to have are commensurate with the particular duty

requirements and safe work practices.

Operations Department

 Operation Manager

-Bachelor’s degree in operations management or related field.

- Experience in management, operations, and leadership.

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- Understanding of general finance and budgeting, including profit and loss,

balance sheet and cash-flow management.

- Ability to build consensus and relationships among managers, partners, and

employees.

- Excellent communication skills.

- Solid understanding of financial management.

 Manufacturer

-Great communication skills, both oral and written and particularly in relation to

report writing and presentation

-Being detail oriented

-Great organizational skills

-Being ethical, efficient, honest, and trustworthy

-Having strong computer skills

-Being a problem solver

- Has a skills or background about a certain work

 Office Staff

- Candidate must possess at least Finance/Accountancy/Banking or equivalent.

- At least 2 Year(s) of working experience in the related field.

17
 - Proficient in basic MS Office applications especially Excel (formulas, basic

PIVOT table) and PowerPoint.

- Strong analytical and planning skills;

- Good communication and presentation skills;

- Excellent problem-solving skills;

- Trustworthy, meticulous.

- Highly-organized, keen attention to detail, strong work ethics and good

interpersonal skills.

- Can work under pressure.

 Guards/Security Officers

- Minimum age of 18 (21 years of age if applying for an armed position)

- High school diploma/GED (or agreement to complete a GED program within

six months of hire)

- Willingness to participate in our pre-employment screening process (drug

screen and background checks)

Finance Department

 Finance Officer

- Have a degree certification

- Excellent analytical skills

- Great communication skills, both oral and written and particularly in relation to

report writing and presentation

- Being detail oriented

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-Strong mathematical skills, particularly in relation to accounting

-Great organizational skills

-Being ethical, efficient, honest, and trustworthy

-Having strong computer skills

- Being a problem solver

 Accountant

- Candidate must possess at least Bachelor's/College Degree in Engineering

(Industrial), Finance/Accountancy/Banking or equivalent.

- At least 3 Year(s) of working experience in the related field is required for this

position.

- Proficient in basic MS Office applications especially Excel (formulas, basic

PIVOT table) and PowerPoint.

- Strong analytical and planning skills;

- Good communication and presentation skills;

- Excellent problem-solving skills;

- Trustworthy, meticulous.

- Highly-organized, keen attention to detail, strong work ethics and good

interpersonal skills.

- Can work under pressure.

- Also a flexible and efficient

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  Cashier

- Ability to communicate and interact with customers to build an inclusive guest

experience.

- Ability to blend problem solving and decision making to positively impact the

guest experience and resolve customers concerns.

- Ability to adapt to different guest interactions and situations.

- Experience promoting and selling various benefits, offerings and services.

- Trustworthy and responsible.

Marketing Department

 Marketing Manager

- Have a bachelor's degree in marketing or business administration.

- Mature, honest, humble , good communication skill, willing to share and focus

personality.

- Candidate must possess a Bachelor’s / College Degree in Engineering

preferable Mechanical or equivalent

- At least 2 year(s) of working experience in the related field for this position

- Required Skill(s) with Management Background and Driving Skill with valid

license

- Preferably experience employee specialized in Sales Engineering particularly

in Machining, lubricant market

- Ability to set a monthly, weekly team target

- Submit daily and weekly update on the account activities

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 Development Staff

- Candidate must possess at least Finance/Accountancy/Banking or equivalent.

- At least 2 Year(s) of working experience in the related field.

- Proficient in basic MS Office applications especially Excel (formulas, basic

PIVOT table) and PowerPoint.

- Strong analytical and planning skills;

- Good communication and presentation skills;

- Excellent problem-solving skills;

- Trustworthy, meticulous.

- Highly-organized, keen attention to detail, strong work ethics and good

interpersonal skills.

- Can work under pressure.

 Marketing staff

- Proven experience as front desk representative, agent or relevant position

- Familiarity with office machines (e.g. fax, printer etc.)

- Knowledge of office management and basic bookkeeping

- Proficient in English (oral and written)

- Excellent knowledge of MS Office (especially Excel and Word)

- Strong communication and people skills

- Good organizational and multi-tasking abilities

- Problem-solving skills

- Customer service orientation

- High School diploma; additional qualifications will be a plus

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3.4 Personnel Duties and Responsibilities

This presents the functions of the employees that are needed to be satisfied in

order for the business to offer good quality service to customers.

Operating Department

 Operation Manager

- Provide inspired leadership for the organization.

- Make important policy, planning, and strategy decisions.

- Develop, implement and review operational policies and procedures.

- Assist HR with recruiting when necessary.

- Help promote a company culture that encourages top performance and high

morale.

- Oversee budgeting, reporting, planning, and auditing.

- Work with senior stakeholders.

- Ensure all legal and regulatory documents are filed and monitor compliance

with laws and regulations.

- Work with the board of directors to determine values and mission, and plan for

short and long-term goals.

- Identify and address problems and opportunities for the company.

- Build alliances and partnerships with other organizations.

- Support worker communication with the management team.

 Manufacturer

- Feed raw materials into production machinery

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- Assemble goods on production lines

- Monitor the production process

- Carry out basic quality and testing checks

- Store goods and raw materials properly in our warehouse

- Use lifting equipment and forklift trucks to fulfill orders

- Pack goods to be shipped

- Maintain work areas and equipment

 Office Staff

- Provide accounting and clerical support to the accounting department

- Type accurately, prepare and maintain accounting documents and records

- Prepare bank deposits, general ledger postings and statements

- Reconcile accounts in a timely manner

- Daily enter key data of financial transactions in database

- Provide assistance and support to company personnel

- Research, track and restore accounting or documentation problems and

discrepancies

- Inform management and compile reports/summaries on activity areas

- Function in accordance with established standards, procedures and applicable

laws

- Constantly update job knowledge

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  Guards

- Patrol industrial and commercial premises to prevent and detect signs of

intrusion and ensure security of doors, windows, and gates.

- Monitor and authorize entrance and departure of employees, visitors, and other

persons to guard against theft and maintain security of premises.

- Write reports of daily activities and irregularities, such as equipment or property

damage, theft, presence of unauthorized persons, or unusual occurrences.

- Answer telephone calls to take messages, answer questions, and provide

information during non-business hours or when switchboard is closed.

- Operate detecting devices to screen individuals and prevent passage of

prohibited articles into restricted areas.

- Inspect and adjust security systems, equipment, and machinery to ensure

operational use and to detect evidence of tampering.

Financing Department

 Finance Officer

- Assisting in the preparation of budgets

- Managing records and receipts

- Reconciling daily, monthly and yearly transactions

- Preparing balance sheets

- Processing invoices

- Developing an in-depth knowledge of organizational products and process

- Providing customer service to clients

- Resolve financial disputes raised by the customer service and sales teams
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- Being a key point of contact for other departments on financial and accounting

matters

- Supporting the Finance Manager and executives with projects and tasks when

require.

 Accountant

- Prepares asset, liability, and capital account entries by compiling and analyzing

account information.

- Documents financial transactions by entering account information.

- Recommends financial actions by analyzing accounting options.

- Summarizes current financial status by collecting information; preparing

balance sheet, profit and loss statement, and other reports.

- Substantiates financial transactions by auditing documents.

- Maintains accounting controls by preparing and recommending policies and

procedures.

- Guides accounting clerical staff by coordinating activities and answering

questions.

- Reconciles financial discrepancies by collecting and analyzing account

information.

- Secures financial information by completing data base backups.

- Maintains financial security by following internal controls.

- Prepares payments by verifying documentation, and requesting

disbursements.

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 - Answers accounting procedure questions by researching and interpreting

accounting policy and regulations.

- Complies with federal, state, and local financial legal requirements by studying

existing and new legislation, enforcing adherence to requirements, and

advising management on needed actions.

- Prepares special financial reports by collecting, analyzing, and summarizing

account information and trends.

- Maintains customer confidence and protects operations by keeping financial

information confidential.

- Maintains professional and technical knowledge by attending educational

workshops; reviewing professional publications; establishing personal

networks; participating in professional societies.

- Accomplishes the result by performing the duty.

- Contributes to team effort by accomplishing related results as needed.

 Cashier

- Managing transactions with customers using cash registers

- Scanning goods and ensuring pricing is accurate

- Collecting payments whether in cash or credit

Marketing Department

Marketing Manager

 Managing all marketing for the company and activities within the marketing

department.
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 Developing the marketing strategy for the company in line with company

objectives.

 Coordinating marketing campaigns with sales activities.

 Overseeing the company’s marketing budget.

 Creation and publication of all marketing material in line with marketing plans.

 Planning and implementing promotional campaigns.

 Manage and improve lead generation campaigns, measuring results.

 Overall responsibility for brand management and corporate identity

 Preparing online and print marketing campaigns.

 Monitor and report on effectiveness of marketing communications.

 Creating a wide range of different marketing materials.

 Working closely with design agencies and assisting with new product launches.

 Maintain effective internal communications to ensure that all relevant company

functions are kept informed of marketing objectives.

 Analyzing potential strategic partner relationships for company marketing.

Office staff

 Undertake daily administrative tasks to ensure the functionality and

coordination of the department’s activities

 Support marketing executives in organizing various projects

 Conduct market research and analyze consumer rating reports/ questionnaires

 Employ marketing analytics techniques to gather important data (social media,

web analytics, rankings etc.)

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  Update spreadsheets, databases and inventories with statistical, financial and

non-financial information

 Assist in the organizing of promotional events and traditional or digital

campaigns and attend them to facilitate their success

 Prepare and deliver promotional presentations

 Compose and post online content on the company’s website and social media

accounts

 Write marketing literature (brochures, press releases etc) to augment the

company’s presence in the market

 Communicate directly with clients and encourage trusting relationships

3.5 Personnel Salary Structure

BASIC Night BENEFITS GROSS

PAY Differential PAY
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NO. OF Monthly Phil SSS Pag-

POSITION STAFF Salary Health IBIG
(8hrs./26
days)
Operation 1 50,000.00 0.00 550.00 1790.70 200.00 52,620.70
Manager

Finance Officer 1 30,000.00 0.00 412.50 1790.70 200.00 32,483.20

Accountant 1 20,000.00 0.00 275.00 1790.70 200.00 22,274.70

Cashier 2 12,000.00 110.38 165.00 1330.00 200.00 13,775.00

Office Staff 1 10,000.00 110.38 137.50 1110.00 200.00 11,527.50

Marketing Staff 2 10,000.00 110.38 137.50 1110.00 200.00 11,527.50

Manufacturer 2 10,000.00 110.38 137.50 1110.00 200.00 11,527.50

Guard/Security 4 9,000.00 105.36 127.50 1000.00 180.00 10, 367.50

Officer

Table 1.Personnel Salary Structure (Monthly Salary)

Salaries symbolize a fair system between the company and employees.

Having a fair salary and compensation system is needed in order for the employees to

feel that they valued as the company’s most important asset. Any unjust situation within

the salary structure and system might result to unmotivated employees. Therefore,

Personnel Salary Structure must be organized thoroughly and comprehensively.

29
 Table 1 shows the Personnel Salary Structure of the Pasyalubong Center. There

are 19 employees in the proposed Pasyalubong Center in order to ensure the

organization of the business. The Operation Manager will receive a salary of 52,540.70,

Finance Officer will have 32,403.20 pesos, and an Accountant will receive a salary of

22,267.70 pesos. The Cashier will receive a salary of 13,695.00 while the Office Staff,

Marketing Staff and Manufacturer will receive a same amount of salary worth 11,447.50

pesos. Lastly the Guard or Security Officer will receive a total pay of 10, 307.50. The

benefits of the employees are the Social Security System, PhilHealth and Pag-ibig.

3.6. Summary of Pre-Operating Activities

This part discusses different pre-operating activities for the business:

Preparation and planning of the business, formation of the business, source of funds,

land improvement, securing remits and licenses, acquisition of equipment and hiring

personnel.

The chart below, the expected time for each task (pre-operating activities) is

presented by horizontal bar whose left marks is the expected beginning of the task and

whose right marks and the expected compilation date. Some of the task below may be

done of the same time while others need time to accomplish.

a. Operation and Planning of the Business

 31

- This part discusses the whole preparation and planning of the business in

terms of its location, fund, market and other things to be considered. It

takes 6 months for the preparation.

b. Formation of the Business

- The business structure is the form partnership type of business. The

partners and the owner must have sufficient amount of fund and resources

to support and contribute and suffice the expenses and business itself. It

takes 3 months to form.

c. Source of Funds

- The funds are originated by the investment and capital of the partners or

the owner as well as bank loan, it takes 2 months to accumulate.

d. Land Improvement

- In this part, improving the particular land that the business choose

to build the business is important to attract customer locally as well

as the foreigners and especially the investors. It includes the

development of the site, walkways, lightings, parking lot and all

facilities. It takes 2 months to undertake.

e. Securing Permits and Licenses

- To legally operate a business, securing a business permit and licenses is

necessary. Permit secure to start a business activity and help the local

government track tax obligation and licenses makes the business to

operate. It takes 2 months to process.

31
f. Acquisition of Equipment and Facilities

- In order to successfully operate the business, entrepreneurs must acquire

the equipment and facilities needed to pacify the needs and the

satisfaction level of the customers and clients.

g. Hiring and Training Personnel

- Manpower is considered the most critical yet important factor in a

workspace especially in the business to operate. The assigned employee

need to hire and must determine, acquire and match the most qualified

employees according to the job needed and applying. It takes 2 months to

train employees to unleash their abilities and skills.

 33

Table 2. Time table

Pre-operating 1st 2nd 3rd 4th 5th 6th 7th 8th 9th

activities

1.Preparation

and planning

of the business

2. Formation of

the business

3. Source of

fund

4. Land

improvement

6. Securing

permits and

licenses

7. Hiring and

training

Personnel

CHAPTER 4

33
 MARKETING FEASIBILITY

This chapter presents the overall marketing aspect of the study. It talks about the

market research and analysis which comprises the target market, market size, and trends,

competition and estimated market share. This section also discusses about the market

strategy which includes the general description of the product.

4.1 Market Research and Analysis

This part presents the pattern of gathering and explaining the information provided by

the company about the markets’ quantitative methods and techniques that are applied

to get that may support within the members decision making.

4.1.1. Target Market

The target market of the PasyalLubongCenter are the all the customers especially

those who will have their trips in different places and those who wants handicrafts or other

handmade crafts that are based within their culture. We cater customers especially to

those tourists, teenagers, craft lovers and many people who wish to buy and give

importance to our products. It is expected that many people will go, visit and buy within

the said company because of the Filipinos traditions in buying pasalubongs to give it to

their loved ones as a present or gift in order to let them feel that they are important.
 35

4.1.2 Market Size and Trends

General Santos City is the only highly urbanized city in Region XII

Soccsksargen, Philippines. It is where the proposed business would be put up and it has

a total population of 594,000 people. Out of 100% of the population of the target market,

60% are adults, 30% are families and 10% are teenagers as shown in the figure 2 below.

This is the target market of the researchers.

Market Size

0%

10%

30%
60%

Adults Families Teenager

Figure 2. Market Size

Most of the Filipinos love buying pasalubongs for their families and friends. In

General Santos City, there are only limited Pasalubong Stores and most of these

businesses are already old. The customers are already used to the products of what these

Pasalubong Stores are giving that’s why the researchers came up with Pasyalubong

35
because they want to give the people of General Santos City a new taste when it comes

to pasalubongs. The researchers want to provide pasalubongproducts that are new and

fresh to the people which they will surely love. They will be able to do this by establishing

Pasyalubong in the city.

4.1.3 Competition

Pasyalubongis in the form of oligopoly because there is only limited competition. It

is considered as oligopolies since there are also existing businesses that offers the same

products. Those businesses are the competitors of Pasyalubong.

4.1.4 Estimated Market Share

From the total market of Sweet Valley Pasalubong Station and

EllynessPasalubongCenter, Pasyalubong is expecting to have 15% of the market share

shown in the figure 3 below.

Estimated Market Share 0%

15%

35%
50%

Sweet Valley Pasalubong Station

Ellyness Pasalubong Center
Pasyalubong
 37

Figure 3. Estimated Market Share

The pie chart above shows that the estimated market share of Sweet Valley

Pasalubong Station is 50%, for Ellyness Pasalubong Center is 35% and lastly a market

share of 15% from Pasyalubong. Based on the chart above, it can be concluded that most

of the customers will purchase products in Sweet Valley Pasalubong Station since this

business is built long ago and customers are already used in buying pasalubong products

in this store. Aside from that, the said store also produce products that are affordable to

the customers and with additional promos. Meanwhile, Pasyalubong has an estimated

market share of 15%. This business will be new to the customers but it will catch up to

the said competitors since this business will produce fresh and new products with

affordable prices which will attract the customers more.

4.2 Market Strategy

In this present world, a business that aims to become effective and efficient elude

wise management and develops marketing strategies in order to accomplish its

objectives.

Our goal is to give the best products for our customers. The target audiences or

costumers are the tourist and even locals. To have more sales we would advertise our

store, products to social media, and post posters to different places.

4.2.1 General Description of the Product

37
 Pasyalubong Center offers products such as foods, souvenir items, shirts etc. that

would showcase the specialties of different places. We ensure that our customers would

receive quality products at a reasonable cost.

4.2.2 Company Name

The name of the company is “PASYAL”- lubongCenter. “Pasyal” came from Filipino

word which means to stroll or to go on a trip. We Filipinos love to go to many places or

“mamasyal” and buy some things such as foods, souvenirs, shirts that came from these

places, as a remembrance or a “pasalubong” to our love ones. PASYAL lubong came

from two words “pasyal” and “pasalubong”. We combine these words as our name of our

company because in our store we showcase the different specialties, delicacies, of the

different places and people. By this people are like strolling different to places by seeing

our pasalubongs.

4.2.3. Company Vision and Mission Statement

Vision

The Pasyalubong Center aims to provide quality service to its customers and to

satisfy the needs of the customer.

Mission

Working with diligence and creativeness, we create exceptional, stimulating and

memorable experience for our customers by consistently providing incomparable,

personalized service with delightful surprises in our beautiful environment. With a culture

built upon a foundation of doing the simple things well with attention to detail, enthusiasm
 39

and passion, we will exceed guest expectations and create a sense of team member pride

and fulfilment. Provide facility for a very delightful moment to taste and experience the

culture and tradition we have here in Mindanao. Provide high quality and wide variety

food facilities for people. Provide highest quality customer service through highly trained

staffs.

Our success will result in superior return for our customers and clients, contribute

in preserving the tradition and culture of the Philippines hidden treasures as a premier

tourist destination, create jobs and improve the economy.

39
4.2.4. Company Logo

Figure 4. Company Logo

4.2.6. Service/Product Quality

The quality of the services that the business will provide in the comfort ability of

seating for the customer to view high quality definition of crafts and delicious foods offered

by the company.

4.3 Pricing Strategy

 41

The business pricing strategy refers to the system of price charges that the

business will use in order to maximize its profitability. This system will be applied to the

customers who wish to buy at Pasyalubong Center in exchange of the quality of service

they will receive.

4.3.1 Pricing Structure

This refers to the detailed amount and other services features that the

Pasyalubong Center offers for its customers.

Table # 1. Pricing Structure (Regular Rates)

Product Regular Rates

Handicrafts P 25.00
Shirt P 200.00
Banana Chips P75.00
Dried Mango P 85.00
Jam P 150.00
Canned Goods P 50.00

Table # 2. Packages for multiple purchases

Promo Rate Description

1 P 275.00 Purchase of Banana Chip, Dried Mango, and Jam will give a less
of P 35.00

2 P 100.00 Purchase of 4 handicrafts will give another one for free

3 P 400.00 Purchase of 2 shirts will give a free handicraft

4 P 560.00 Purchase of 3 shirts will give a less of P 40.00

5 P 180.00 Purchase of 4 Canned Goods will give a less of P 20.00

The prices shown on the table will be the price structure that will be implemented

by the Pasyalubong Center in order to ensure that the business will gain profit out of the

41
services it offers. The researchers had thoroughly assess the prices to be mandated in

order to give assurance to the customers that their experience on our service will be worth

the price.

4.4 Promotion Strategy

The Pasyalubong Center will provide good quality services that will cater the needs

and wants of the customers. An in-depth promotional alternative will serve as a tool to

persuade and hook the clients to avail the services that the Pasyalubong Center offers.

Since, people these days are technologically inclined and digitally native, the company

will use Social Media (e.g Facebook, Twitter, Instagram, etc.) to promote the products. It

will give a great advantage to the business since exploiting the use of social media will

lessen the expenses of the business.

4.4.1. Advertising/Publicity

Advertising

In the proposed company, the proponents will employ advertising through the use

of Social Media specifically “Facebook”, which is the fastest, most popular, and the

easiest way to disseminate message to the target market.

Publicity

To ensure good publicity, the business will give donations to its local community

for maintaining its cleanliness and for its improvement, as part of its corporate social

responsibility. It will be a win-win situation for the business since it will earn profit and the

business will get something in return.

4.4.2 Sales Promotion

 43

Sales promotion is a way of persuading a potential customer and gain their loyalty

after they are being satisfied with the products or services given to them. It is designed to

be used as a short-term tactic to boost the sales of your business. As part of promotional

strategy, Pasyalubong Center offers a product that can satiate their cravings and let them

felt to their families or friends the rich culture of a particular place. It offers packages and

bundles for customers to avail wherein, they can save money that is worth to be spent.

4.5 Key Success Factors

The key success factors depend on what are the different goals and company

owner’s desire would like to achieve. It will also be based on their values and will

emphasize the vision and mission of a certain business organization. However, there are

consistent set of factors that are usual among the proposing of Pasyalubong Center and

for one to succeed and become competent enough in the food and crafts industry, the

company must consider the following identified key success factors:

 Assembling a Right Team. The proposed business needs to put up a group of

people whose talents, experiences, skills, and personalities mesh together.

Building a culture requires a motivated, committed workforce. Important elements

of commitment and motivation include employees that take initiative, make

suggestions, stay late when necessary, and strive to meet the highest performance

standards. When a company’s staff takes ownership of every aspect of running the

business, the buy-in can yield huge dividends.

 Quality of the Product and Services. To become a successful business is

offering a quality product or service. Once you’ve answered the cravings of the

43
 customers, you can create a product that is tailored to meet the wants and needs

of your targeted consumers, and ensure that the product is well made. First-time

customers become repeat customers if they perceive that your product has value,

which is why quality is one of the essential success factors of a public company.

 Volume of Sales. Sales are a quantifiable way to validate your ideas, marketing,

and overall business strategy. The number of sales over a specific period of time

can determine whether your product can sustain itself in the market. Sales also

help your business generate revenue and profitability, which triggers growth and

expansion opportunities.Your sales are your “wins,” and the more sales you can

amass, the greater the perception among your target audience that you’re a

legitimate company.

 Competent Employees. Having high performing employees is an asset of the

company. Individuals employed in the business must be knowledgeable enough

about their job. They must also conform to the different job qualification set by the

company.

 Secured and Well-Guarded place. Refers to the safety extended to the

customers and clients in order to ensure their safety during their stay.

 Consistent Marketing Strategy. A consistent marketing strategy that constantly

adapts to meet a target audience’s changing wants and needs. Businesses that

express a consistent message across all media platforms are more likely to hit

their target. Consistent marketing requires you to understand all aspects of your
 45

target audience, including where they like to gather on social media, how they

digest information in the digital age, what messages turn them off, and the

emotions they attach to products and services in your industry.

 Cash Flow Management. Effectively managing your brand’s cash flow

and keeping open communications with prospective investors and lenders. For

instance, in case of an emergency, when you need instant finance, your business

has several doors open that gives the luxury of choosing the best possible option.

45
 CHAPTER 5

TECHNICAL FEASIBILITY

This chapter presents the technical feasibility of the PasyalubongCenter. It is the analysis

of a proposed plan or method including whether it can be delivered with the available

technology, techniques, skills and resources, both human and financial resources.

5.1 Technical Process

The technical process will describe the merchandising processes of the business

as well as its flow chart.

5.1.1 The Service/The Product

The business has an edge to its competitors because it has features that

are that can be distinguished from other businesses.

 The medium-sized venue can accommodate around 20 customers and

will enable them to select products of their choice with convenience.

 It has varied selection of products that can make the customers have

greater choices for their own preferences.

 The business has also skilled and competent employers that are

knowledgeable about their work.

5.1.2 Raw Materials

These are the following raw materials which are needed in order for

Pasyalubong to operate efficiently and effectively.

 47

Items

Handicrafts

Printed Shirts

Air Condition Unit

Electric Fans

CCTV

Cash Register Machine

Generator Set

Shirt Organizer

Tables

Computer Set (Office)

Printer (Office)

Goods

Table 8.Raw Materials.

5.1.3 Service Process

Pasyalubong can acquire service to its customer in the usual manner of

making them select their preferred item to purchase and having them

accommodated at the same time. This makes it beneficial for them since they can

have information concerning the stacks of different items being sold and more

information about pricing and different promos.

47
 The customers visit Pasyalubong and select their preferred
items to be purchased.

The customer may ask for different information about the stacks
of a specific item or ask more information about promos and
discounts

Customers avail the product

Figure 5. Service Process

5.2 Location Analysis

The proposed Pasyalubong Center will be located at Filipino-American Friendship

Avenue, General Santos City beside the General Santos City International Airport. This

project is strategically placed inside the General Santos City so that the local and tourist

customers may experience a new-phased level of one-stop-shop for proudly Generals -

made quality products such as handicrafts, processed food, souvenir and, and native

accessories, fruits and flowers, etc., at very affordable rates using locally or internationally

sourced materials as well as indigenous and recyclable materials.

 49

5.2.1 Location Map

Figure 6. Location Map

49
5.2.2 Vicinity Map

Figure 7. Vicinity Map

 51

5.2.3 Establishment Lay-out

Figure 8. Establishment Lay-out

5.3 Production/Service Needs

This part shows the facilities and equipment used by PasyalubongCenter. All of the

listed facilities and equipment below will be used for operating the business properly and

to satisfy the needs of the customers. Most of the equipment and facilities listed below

are essential for the business to be conducive considering its main line business which is

the one-stop-shop.

5.3.1 Facilities

These are the building and other significant area of the entity which is considered

essential for the operation of the business.

51
• Management Officer

It is where the manager and other employees will work and do the assigned job in

order to ensure the smooth running of an office on a day-to-day basis and may manage

a team of administrative or support staff.

• Comfort room

There will be three comfort room 1 for the female , 1 for the male and 1 for the

employees.

5.3.2 Equipment

It comprises of the needed appliances for the entity's profitability.

•Handcraftts

This product which we sell that is crafted by skilled hands.

•Air Condition Unit

The venture will use 1 air condition unit for the management office only.

•Electric Fans

The venture will use 6 electric fans for every corner.

•CCTV

In order to ensure the safety and security of both customers and employees,

CCTV cameras will be used. There will be 3 sets of CCTV cameras. Each set is composed

of 2 cameras. CCTV cameras will be put in the entrance, exit and office.
 53

•Cash Register Machine

Is a device will use by the cashier to make it easier and faster for calculating and

record sales and transactions.

•Generator Set

Two (2) Generator set will be used in order to ensure that a smooth flow will

continue despite of having power shortage.

• Tables

The venture will use 6 tables for the costumer.

•Computer Set

There will be 6 computers set all in all. 4 computers will be used inside the

management office while the 2 computer sets will be used in the cashier.

• Printing

There (4) printers will be used inside the management office intended for the

printing of important documents.

• Processed food

Food which has undergone some form of processing to turn raw ingredients into

a food product.

 Coffee Mixer

It can have a faster production of coffees needed by the customers.

53
 CHAPTER 6

FINANCIAL FEASIBILITY

This chapter presents the financial feasibility of the proposed PasyalubongCenter.

This section shows the diagnosis of the overall performance of the business which will be

the most important aspect of all since it determines the ability of the business to survive

and to generate much income in a way that it can have a pay back from all of its expenses.

It includes necessary information needed by the users such as the financial statements

and its analysis, sources and uses of funds and the budgeting plans for the entire

operations of the company. This chapter will basically calculate if the proposed business

is feasible, profitable and worthy to engage with.

6.1. Financial Statements and Analysis

This part presents the projected financial statements of the business that shows

accurate and fair calculations of the necessary information to be used by the users to

make sound judgements and decisions. It will present the following income statement,

cash flow statement and balance sheet.

6.1.1. Financial Statements

The projected income statement was prepared to determine the financial status of

operations of the proposed business for a particular period usually for one year. It will

showcase the estimated revenue, operating expenses as well as the net income or loss

of the proposed business.

 55

6.1.1.1. Income Statement

An income statement is also known as the statement of performance for it

shows the net income or loss of an entity based on its efficiency and performance for a

given period of time.

 Materials and supplies are expected to increase 1% every year.

 Service revenue is assumed to increase 4% every year.

 It is expected that the expenses for the advertisements will decrease after a

year because it is assumed that the business will already be well known around

the vicinity.

 Utilities expense is assumed to increase 2% every year.

 The business will allocate the money for the rent expense since they will only

be renting the land to be used under legal terms for 10 years.

6.1.1.2. Cash Flow Statement

This statement shows the information about the cash inflows and outflows

of the PasyalubongCenter starting from its pre-operation up to the fifth year of the

business. It is an essential tool for analysing the efficiency of the business to

generate cash and other cash equivalents and in order to track where the money

of the business is going.

6.1.1.3. Balance Sheet

The projected balance sheet was prepared to determine the financial status

of the business for a given period of time. It contains the financial resources owned

by the venture which is also known as the assets; also it shows the liabilities and

financial investments of the owner.

55
 Balance Sheet Accounts

 Income Tax Rate is 30% per annum.

 There are 8 capitalist partners who will contribute to the common fund

amounting to Php 756,800.000.

 Profit and loss will be divided equality within the partners.

 Accumulated depreciation will increase 2% every year.

 The capital to be supplied by the partners increases 3% every year.

Financial Analysis

In order to support and substantiate the three major financial statements, financial

analysis will be provided using the profitability ratio analysis and liquidity ratio analysis.

6.1.1 Profitability Ratio Analysis

Profitability ratios are a class of financial metrics that are used to assess the

business’ ability to generate earnings relative to its associated expenses. With the help

of profitability ratios, investors can have a grasp about the capability of the business to

generate profit and will lead to the decision if it is worth to invest or not.

Return on Assets

Return on assets is the overall measure of company’s profitability.

The researchers computed this ratio by dividing the net income by average assets.

𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
Return on assets =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
 57

Return on assets

AVERAGE TOTAL ASSETS

NET INCOME RATIO

Year 1 1, 280, 451 1, 587, 843 80.64%

Year 2 1, 568, 897 1, 823, 142 86.05%

Year 3 1, 890, 578 1, 978, 956 95.53%

Year 4 2, 063, 213 2, 597, 543 79.43%

Year 5 2, 341, 416 2, 897, 354 80.81%

The rate of return on assets for five years is 80.64%, 80.05%, 95.53%, 79.43%, and

80.81% respectively. Based on the given table during the year 1, the company already

had 80.64% return on assets which is a good indication that it is favourable.

6.1.2 Turnover Ratio Analysis

The turnover ratio analysis represents the level of efficiency and

effectiveness of a certain business in using its available financial resources. It measures

how many times a company sold its total average inventory amount during the year. It

also measures the efficiency of the business to generate its revenue through its assets.

The turnover ratio analysis formula is:

𝑅𝑒𝑣𝑒𝑛𝑢𝑒
Turn over=
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠

57
 Turnover Ratio

REVENUE TOTAL ASSETS RATIO

Year 1 1, 568, 246 1, 589, 999 0.99

Year 2 1, 579, 300 1, 697, 589 0.93

Year 3 1, 789, 250 1, 890, 457 0.94

Year 4 1, 799, 590 1, 956, 345 0.92

Year 5 1, 890, 430 2, 145,432 0.88

Based on the data presented above, the turnover ratios for five succeeding years

are 0.99, 0.93, 0.94, 0.92, and 0.88 respectively.

6.1.3 Leverage Ratio Analysis

It measures the relationship between the investment share of the partners.

The formula of leverage ratio is:

Leverage ratio= total assets / shareholders’ equity

Leverage Ratio

TOTAL ASSETS OWNERS EQUITY RATIO

Year 1 1, 765, 435 1, 765, 435 1

Year 2 1, 890, 453 1, 890, 453 1

Year 3 1, 978, 765 1, 978, 765 1

Year 4 2, 142, 234 2, 142, 234 1

 59

Year 5 2, 324, 154 2, 324, 154 1

6.1.4 Liquidity Ratio Analysis

Liquidity ratio are ratios that measure the ability of the firm to settle its long

term and short term obligations. to determine the ability of an organization to pay its bills

in a timely manner. The test for liquidity ratio is the current ratio and the quick ratio .

Payback Period

Payback period in business and economics refers to the length of time that

it takes to recover the cost of its investment. Cash receipt are equal to the net income

plus depreciation expense.

Payback period= investments / cash returns

Cash returns= net income + depreciation expense

= 1, 050, 000 / 2, 810, 679

= 0.37

6.3 Sources and Uses of Funds

Everyone in the business must have a mindset of keeping the goal of the business

to avoid future difficulties and losses. The business is responsible for obtaining in financial

resources and funds necessary for efficient and effective operation.

59
 The most common source of capital is from financial institutions. These are the

banks and organizations that are mainly for lending money. However, there must be a

practicality study and research done for these institutions before availing credit facility.

Capital commitments of the investors is also a practical source of fund. Corporate

form or other type of association like cooperatives and partnership is the mode of this

industry, which is presumably a result of the moderately simple boundaries of the

business.

All members of the Pasyalubong made a contribution for the total project cost of

P1,050,000.00 that are divided in each member. Thus, there is no loan from banks and

other outside creditors.

NAME OF PARTNER CONTRIBUTION

1.) Hape, Charlene D. P800,000.00
2.) Pedregosa, Selwyn Ryan D. P800,000.00
3.) Romaob, Rayhanah D. P800,000.00
4.) Sarrosa, Rhea Dona P800,000.00
5.) Sayson, Lyndsy L. P800,000.00
6.) Templado, Simplicity Jade P800,000.00
7.) Yu, Danny Neil P800,000.00
Total P5,600,000.00

6.4 Budgeting Plans

Each partner has its own duties and responsibilities in making financial decisions

that involves budgeting plans and strategies of the business. They are very important

most especially when it comes to future and development planning of the business. The
 61

employees and workers of the business are also included in the revolvement of the

financial plans. It is because they are the ones that are closest to the area of conflict

whenever there are problems and also they are closely engage in the business’

operations.

Schedule 1

Building Cost

PROJECTED BUILDING

ITEM UNIT COST LIFE TOTAL

Building 1,000,000 25 Php 1,000,000.00

Schedule 2

Projected Machineries and Appliances

Projected Machineries and Appliances

Items No. of Unit Unit Cost Total

Generator Set 3 120,000.00 360,000.00

Computer Set 8 19,000.00 152,000.00

Air Condition Unit 5 15,999.00 79,995.00

Wall Fan 6 3,999.00 23,994.00

Cash Register 3 5,500.00 16,500.00

Machine

CCTV Set 5 14,999.00 74,995.00

61
 Sound System 2 9,999.00 19,998.00

Water Dispenser 4 6,999.00 27,996.00

Flat Screen TV 3 20,000.00 60,000.00

Printer 1 25,000.00 25,000.00

Coffee Mixer 3 8,999.00 26,997.00

Gas Stove 5 7,599.00 37,995.00

Gasul 15 713.00 10,695.00

Converter 5 9,000.00 45,000.00

TOTAL: PHP 1,756,030

Schedule 4

Projected Permits and Licenses

Projected Permits and Licenses

Permits and Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Licenses
S
Sanitary Health 400.00 400.00 400.00 400.00 400.00 400.00
Clearance
Fire Safety Clearance
235.70 235.70 235.70 235.70 235.70 235.70
Barangay Clearance
1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00
Garbage Collection
Fee 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00
Building Permit
6,500.00
DTI Registration
7,500.00 7,500.00 7,500.00 7,500.00 7,500.00 7,500.00
 63

SEC Certificate of
Registration 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Bureau of Food and

Drugs (BFAD) 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

TOTAL P27, 385.70 P20,885.70 P20,885.70 P20,885.70 P20,885.70 P20,885.70

Schedule 5

Projected Installation Cost

Projected Installation Cost

Particular Cost

Internet/Telephone 8,000.00

Socoteco (Light) 75,000.00

TOTAL 83,000.00

Schedule 6

Project Advertising Cost

Project cost
advertising
Particular Quantity Unit cost Total cost
Tarpulin 5 780 3900
Leaflets/fliers 250 2.50 625
Total P4525

63
 Schedule 7

Project repair and maintenance

Particular Quantity month Annual

Air condition 3 P 750 P 9,000
(cleaning)250/unit
Coffee vending 1 P 250 P 3,000
machine
Fans 4 P 400 P 4,800

Generator 1 P 1,500 P 18,000

Total P 2,900 P 34,800

Schedule 8

Projected Materials

Projected Materials
Items No. of Unit Unit Cost Total

Brooms 7 P 299.00 P 2,093.00

Curtains 4 P 350.00 P 1,400.00

Floor Mop 4 P 469.00 P 1,876.00

Wipe Cloth 10 P 99.00 P 990.00

Fire Extinguisher 2 P1,499.00 P 2,998.00

TOTAL P 9,357.00

Schedule 9

Projected Supplies

Projected Supplies (Monthly)

Items No. of unit Unit Cost Total
Air freshener 4 120.00 P480.00
Disinfectant Spray 4 350.00 P1,400.00
 65

Scissors 5 15.00 P75.00

Stapler w/ stapler 5 75.00 375.00
wire
Paperbags (set by 10 69.00 P690.00
100)
Record Books 2 80.00 P160.00
Receipt Sheet 15 20.00 P300.00
Ink 4 285.00 P1,140.00
Short Bondpaper 3 120.00 P360.00
Long Bondpaper 3 150.00 P450.00
Gandula 5 175.00 P875.00
Punchers 5 45.00 P225.00
Tapes 5 18.50 P92.50
Plastic tupperware 40 P129.00 P5,160.00
containers (set by
25)
Plastic bags (set by 20 P35.00 P700.00
50)
TOTAL P12,357.50

Schedule 10

Projected Utilities Expense

Projected Utilities Expense

Particular Quantity Watt Operating Daily Kilowatts Total Rate Daily Monthly
per Hour Usage Kilowatts Usage Usage
hour

Air 2 150 8 1200 3.6 7.2 28.8 207.36 8,400.00

Condition
Unit
Electric 10 50 6 300 0.08 8 4.8 38.4 1,500.00
Fans
CCTV 4 70 24 1680 1.68 3.36 40.32 135.47 11,760.00
52
Cash 2 13 6 78 0.013 0.026 0.078 0.0020 390.00
Register 28
Machine

65
 Computer 5 70 8 560 0.56 4.2 2.24 18.816 1,960.00
Set
Printer 2 40 8 160 0.32 0.08 1.29 2.048 1,120.00
Refrigerator 3 80 8 640 1.92 1.92 5.12 9.830 1,344.00
Flat Screen 2 26 24 624 0.026 0.052 0.624 0.0324 3,120.00
Tv 48
Water 1 8 8 64 1.9 1.9 15.2 28.88 448.00
Dispenser
Total ₱30,042.00
Electricity
Total Water ₱5,050.00
Consumed
TOTAL ₱35,540.00
UTILITIES

Schedule 11

Projected Communication Expense

Communication
Particular Monthly Cost
Internet and Telephone Expense 7,200.00

Schedule 12

Projected depreciation expense

Projected Depreciation expense

Total cost Life Total
Furniture and 62646 4 15661.5
fixtures
Machineries and 1756030 6 292671.67
appliances
Building 1000000 10 100000
TOTAL 408332.67
 67

Schedule 13

Project Salaries and Wages

Projected Salaries and Wages

BASIC Night BENEFITS GROSS

PAY Differential PAY
NO. OF
POSITION STAFF Monthly Phil SSS Pag-
Salary Health IBIG
(8hrs./26
days)
Operation 1 50,000.00 0.00 550.00 1,790.70 200.00 52,620.70
Manager

Finance Officer 1 30,000.00 0.00 412.50 1,790.70 200.00 32,483.20

Accountant 1 20,000.00 0.00 275.00 1,790.70 200.00 22,274.70

Cashier 2 12,000.00 110.38 165.00 1,330.00 200.00 13,775.00

Office Staff 1 10,000.00 110.38 137.50 1,110.00 200.00 11,527.50

Marketing Staff 2 10,000.00 110.38 137.50 1,110.00 200.00 11,527.50

Manufacturer 2 10,000.00 110.38 137.50 1,110.00 200.00 11,527.50

Guard/Security 4 9,000.00 105.36 127.50 1,000.00 180.00 10, 367.50

Officer

Total 151,000 546.88 3,885.00 11,032.1 1,580.00 165,555.60

67
 Schedule 14

Projected employee-employer contribution

Employee-employer contribution
employee employer Total/month
PHILHEALTH P 1,942.50 P 6,650 P 8,592.50
SSS P 9,922.10 P 11,900 P 21,822.10
PAG-IBIG P 960 P 1,990 P 2,950
Total P 33,364.60

Schedule 15

Projected 13th month pay

13th month pay

Employee #of employee payment

Operation manager 1 P 50,000
Finance officer 1 P 30,000
Accountant 1 P 20,000
Cashier 2 P 12,000
Office staff 1 P 10,000
Marketing staff 2 P 10,000
Manufacturer 2 P 10,000
Guard/security officer 4 9,000
Total P 151,000

Schedule 16

Projected Revenue and Services

Individual Prices for Products

PRODUCT RATE # OF DAILY MONTHLY ANNUAL
PRODUCTS
SOLD
Handicrafts P 25.00 12 P 120.00 P 1,440.00 P 17,250.00
Shirt P 100.00 5 P 1,000.00 P 30,000.00 P 360,000.00
Jam P 150.00 4 P 600.00 P 18,000.00 P 216,000.00
Dried P 85.00 3 P 255.00 P 7,650.00 P 91,800.00
Mango
Banana P 75.00 3 P 225.00 P 6,750.00 P 81,000.00
Chips
 69

Canned P 50.00 2 P 100.00 P 3,000.00 P 36,000.00

Goods
Total P 2,300 P 69,000 P 828,000.00
By Package
PRODUCT RATE # OF DAILY MONTHLY ANNUAL
PRODUCTS
SOLD
Package 1 P 275.00 3 P 825.00 P 24,750.00 P 297,000.00
Package 2 P100.00 18 P 1,800.00 P 54,000.00 P 648,000.00
Package 3 P 400.00 18 P 1,800.00 P 54,000.00 P 648,000.00
Package 4 P 560.00 3 P P 50,400.00 P 604,800.00
1,680.00
Package 5 P 180.00 2 P 360.00 P 10,800.00 P 129,600.00
Total P 6465.00 P109,950.00 P1,319,400.00
Total Revenue P 3,646,800.00

69
 CHAPTER 7

SOCIO-ECONOMIC

This chapter discusses the socio-economic activity of Pasyalubong Center

Manufacturing business in General Santos City to the positive and negative effects to the

economy and its positive and negative effects to the society.

Positive Effects to the Economy

This part discusses the positive and negative effects of Pasyalubong Center

Manufacturing business in General Santos City.

Positive Effects

Pasyalubong Center has a positive effect on Generating money for the local economy

through selling of goods that could possibly reach the costumers satisfactory of needs

and wants. The Pasyalubong Center Manufacturing Business have a direct, although

limited, positive Impact on their local labor markets through the employment of local

residents as staff association with the Pasyalubong Center Manufacturing Business, with

its new authentic local image, creates important opportunities for other businesses.

Negative Effects

Improper waste administration will be a major issue that will influence the economy

if its not appropriately oversaw and watched. Since the Pasyalubong Center

Manufacturing Business will cater a big amount of people. There is really a need to

practice proper waste management or else it will lead to both land and air pollution which

can cause respiratory problems and other adverse health effects as contaminants are
 71

absorbed from the lungs into other parts of the body. Having a poor waste management

practice will also affect the municipal well-being since everyone wants to live and visit

places that are clean, fresh and healthy. A city with poor sanitation and with waste matter

all over the place does not attract good people, investors and tourists.

Positive effects of the Society

This part discusses the positive and negative effects of the Pasyalubong Center

Manufacturing Business in General Santos City to the Society.

Positive Effect

The possible venue widens the range of Pasyalubong Center Manufacturing

Business for local residents, enhancing the local culture life. The business provide raw

materials of goods that are Imported from abroad where no other manufacturing business

sell in the locality, or specialized alternative in those areas with multiplex provision.

Negative Effects

The goods that the Pasyalubong Center May possibly have pollution of our natural

resources. Indirectly, the use of the product or its disposal at the end of its life may cause

a negative environmental impact. This is only one of the reasons for a growing number of

regional and international environmental programs and regulations that the business

helps or forces them to decrease their environmental footprint.

71