Feasib_midterms_reviewerD.pdf

BACR 6 FEASIBILITY STUDY REASONS TO CONDUCT A FEASIBILITY STUDY: Gives focus to the project and outline CHAPTER 1: INTRODUCTION TO FEASIBILITY...

BACR 6 FEASIBILITY STUDY REASONS TO CONDUCT A FEASIBILITY STUDY: Gives focus to the project and outline CHAPTER 1: INTRODUCTION TO FEASIBILITY alternatives. Narrows business alternatives FEASIBILITY STUDY Identifies new opportunities through the - is the initial design stage for any project or plan. investigative process. - is an analysis of the viability of an idea. Identifies reasons not to proceed. - “Should we proceed with the proposed idea?” Enhances the probability of success by - is an analysis that takes all of a project's relevant addressing and mitigating factors early on that factors into account—including economic, could affect the project. technical, legal, and scheduling considerations—to Provides quality information for decision ascertain the likelihood of completing the project making. successfully. Provides documentation that the business - can provide a company's management with crucial venture was thoroughly investigated. information that could prevent the company from Helps in securing funding from lending entering carelessly into risky businesses. institutions and other monetary sources. Helps to attract equity investment. FEASIBILITY STUDIES HELP DETERMINE: ✓ Does the company possess the required resources or SIX PARTS TO ANY EFFECTIVE FEASIBILITY STUDY: technologies ✓ Does the proposal offer a reasonable return vs. risk (1) THE PROJECT SCOPE from the investment. - which is used to define the business problem and/or opportunity to be addressed. ▪ project participants and end-user THE GOALS OF FEASIBILITY STUDIES: ▪ project sponsor 1: To understand thoroughly all aspects of a project, (2) THE CURRENT ANALYSIS concept, or plan - is used to define and understand the current 2: To become aware of any potential problems that could method of implementation, such as a system, a occur while implementing the project product, etc. 3: To determine if, after considering all significant factors, ▪ stop and correct any problems the project is viable—that is, worth undertaking encountered in the current system (3) REQUIREMENTS REASONS TO DO OR NOT TO DO A FEASIBILITY STUDY - depend on the project's overall purpose. ▪ technical and capital requirements of the REASONS GIVEN FOR NOT DOING A FEASIBILITY venture ANALYSIS INCLUDE: We know it’s feasible. An existing business is (4) THE APPROACH already doing it. - represents the recommended solution or course of Why do another feasibility study when one was action to satisfy the requirements. done just a few years ago? ▪ Does the recommended approach satisfy Feasibility studies are just a way for consultants the requirements? to make money. ▪ Is it also a practical and viable solution? The market analysis has already been done by the business that is going to sell us the (5) EVALUATION equipment. - Examines the cost effectiveness of the approach Why not just hire a general manager who can selected. do the study? - After the total cost of the project has been Feasibility studies are a waste of time. We need calculated, a COST AND EVALUATION SUMMARY is to buy the building, tie up the site and bid on prepared which includes such things as a the equipment. cost/benefit analysis, return on investment, etc. 1 (6) REVIEW WHO CONDUCTS A FEASIBILITY STUDY? - substantiate the thoroughness and accuracy of = company management (project team), senior managers, the Feasibility Study, and to make a project qualified consultant decision; either approve it, reject it, or ask that it be revised before making a final decision. FEASIBILITY STUDY VS. BUSINESS PLAN ◻ "Is this a viable business ◻ outlines the actions venture?" needed to take the CONTENTS OF FEASIBILITY STUDY: proposal from "idea" to "reality." 1.) INTRODUCTION / SUMMARY - general description of the project and your ◻ narrow the scope of the ◻ deals with only one preliminary plan for its completion. project to identify the alternative or scenario. - narrative about the project, product, service plan best business scenario. or business ◻ conducted before the ◻ prepared only after the 2.) MANAGEMENT ASPECT business plan business venture has - identification of duties and responsibilities, flow of been deemed to be authority and manpower level requirement of the feasible study If a proposed business venture is considered to be feasible, 3.) TECHNICAL ASPECT a BUSINESS PLAN is usually constructed next that provides - helps to determine the efficacy of the proposed a "roadmap" of how the business will be created and project by examining the details of your intended developed. The BUSINESS PLAN provides the “blueprint” process, including materials, logistics and for project implementation. technology - helps to determine the capacity of the project If the venture is deemed not to be feasible, efforts may be made to correct its deficiencies, other alternatives may be 4.) MARKETING ASPECT explored, or the idea is dropped. - factors affecting the market affecting market of the product and appropriate marketing program for the product [KEY TAKEAWAYS: Chapter 1] o A FEASIBILITY STUDY assesses the practicality of a 5.) FINANCIAL ASPECT proposed plan or project. o A company may conduct a feasibility study if it's - project cost, working capital, sources of funds, considering launching a new business or adopting a financial projection and analysis new product line. o It's a good idea to have a CONTINGENCY PLAN in case 6.) SOCIO ECONOMIC of unforeseeable circumstances, or if the original - project should be geared toward not only for-profit project is not feasible. generation but also for its social and economic benefits 7.) FINDINGS AND RECOMMENDATIONS - use the data for possible risks and successes the project could encounter CHAPTER 2: MANAGEMENT STUDY MANAGEMENT ASPECT - describes the form of business organization that is best suited for the proposed subject, the organizational structure, the number of personnel WHEN TO CONDUCT FEASIBILITY STUDY? needed, their qualifications, their compensation, and the = when considering launching a new business, adding a new projected time table before the project is implemented. product line, or acquiring a rival. 2  THE MAIN OBJECTIVE OF THIS PLAN: is to determine - contains a the option effectiveness of the organization set-up. DESCRIPTION OF YOUR narrative descript- BUSINESS STRUCTURE / tion of the legal requirements for TYPE OF ORGANIZATION PURPOSE OF AN ORGANIZATIONAL / MANAGEMENT establishing the FEASIBILITY STUDY: business and why this is the right structure for your ✓ to define the legal and corporate structure of a business. business ✓ may also include professional background information about the founders and principals of the business and 4 TYPES OF BUSINESS ORGANIZATION: what skills they can contribute to the business. 1) SINGLE / SOLE PROPRIETORSHIP - referred to as a SOLE TRADER or a THE ORGANIZATIONAL FEASIBILITY STUDY PROPRIETORSHIP SHOULD INCLUDE: - is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. MANAGEMENT ASPECT [15 PARTS] UNDERSTANDING SOLE PROPRIETORSHIP  INTRODUCTION A sole proprietorship is very different from  OBJECTIVES OF THE STUDY corporations (corp.), limited liability companies (LLCs),  DESCRIPTION OF YOUR BUSINESS STRUCTURE / or limited liability partnerships (LLPs), in that no TYPE OF ORGANIZATION separate legal entity is created. As a result, the business owner of a sole proprietorship  COMPANY VISION AND MISSION is not exempt from liabilities incurred by the entity.  COMPANY LOGO  COMPANY GOALS AND OBJECTIVES REGISTRATION: REQUIREMENTS AND PROCESS OF SOLE PROPRIETORSHIP?  KEY BUSINESS OPERATION [Step 1]: Choose a business name and register it (DTI)  DESCRIPTION OF YOUR ORGANIZATIONAL [Step 2]: Get a barangay clearance STRUCTURE Requirements:  INTERNAL AND EXTERNAL PRINCIPLES AND DTI Certificate PRACTICES OF THE BUSINESS Payment of fees Proof of address  PROFESSIONAL SKILLS AND RESUMES / JOB 2 valid IDs DESCRIPTIONS [Step 3]: Get Mayor’s Permit  SALARIES AND BENEFITS Requirements:  RECRUITMENT PROCESS DTI Certificate Barangay Clearance  PERFORMANCE APPRAISAL ID and Proof of address  OPERATING HOURS AND WORK SCHEDULES Payment of fees  GANTT CHART Accomplished forms to get the permits [Step 4]: Register at the Bureau of Internal Revenue (BIR) After registration, the sole proprietor receives a Certificate of Registration (COR) and Tax Identification The management aspect Number (TIN). INTRODUCTION discuss the name of the Requirements: firm, the type of Certificates and permits from the above steps organization, the vision and mission, organizational goals, and IDs organizational chart, manpower resources, job description Payment of fees and qualifications, recruitment, selection and hiring of Accomplished BIR Forms workers, policies and regulations, project schedules and [Step 5]: Register at Social Security System (SSS) and management feasibility. PhilHealth 3  TYPES OF PARTNERSHIP: ❖ GENERAL PARTNERSHIP - Contribute capital and expertise - Actively manage and exercise control - Have unlimited legal liability Ex: Law firm. Each lawyer in the firm has value to contribute. While they have the ability to work independently, they each benefit from larger market reach made available by the additional members' reputation and skills. They share the costs and profits from doing business, pay income taxes on their income, and have unlimited liability for the firm. 2) PARTNERSHIP ❖ LIMITED PARTNER - is a formal arrangement by two or more parties to - Only contribute capital (assets, cash, etc.) manage and operate a business and share its - Do not manage and cannot exercise control profits - Cannot be a party to any legal claims - There are several types of partnership arrangements. In particular, in a partnership ❖ LIMITED LIABILITY PARTNERSHIP business, all partners share liabilities and profits - Limits the legal liability of all partners equally, while in others, partners may have limited - Have protection from the wrongful acts of the liability. other partners, such as negligence, - There also is the so-called "SILENT PARTNER," in misbehavior, and other unprofessional which one party is not involved in the day-to-day conduct. operations of the business. REGISTRATION: REQUIREMENTS AND PROCESS OF PARTNERSHIP 1. Register Your Business Name at the Securities and Exchange Commission (SEC) 2. Obtain a Barangay Clearance 3. Register with the Social Security System (SSS) 4. Obtain a Permit from the Mayor's Office 5. Register Your Business with the Bureau of Internal Revenue (BIR) REGISTRATION: REQUIREMENTS AND PROCESS OF PARTNERSHIP 1. Basic Requirements 3) CORPORATION 2. Name Verification Slip - is created when a business is incorporated by a 3. Articles of Partnership (AP) group of shareholders with a common goal. 4. Joint Affidavit of Two Partners to change Shareholders share ownership of a business, as partnership name (not required if already stated in represented by their holding of stock shares. AP) 5. Registration of data-sheet REGISTRATION: REQUIREMENTS AND PROCESS OF 6. Certificate of Bank Deposit CORPORATION 7. Name of the partnership 1. Secure Business Name with the SECURITIES AND 8. Principal office address EXCHANGE COMMISSION (SEC) - articles of 9. The contact number of the partner incorporation and by-laws. 10. Name, citizenship, address, birthday and Taxpayer 2. Open Corporate Bank Account Identification Number (TIN) of the partners 3. 3.Register with the Securities and Exchange 11. Capital contribution of the partners Commission (SEC) 12. Purpose of the partnership 4. Register with the Bureau of Internal Revenue (BIR) 5. Register with the Social Security System (SSS) 4  6. Register with PhilHealth To do any related activity for the member’s self 7. Register with Pag-IBIG government, improve social and/or economic well- 8. Obtain a Mayor’s or Business Permit: being under a truly just democratic society; Barangay Clearance To work with the cooperative movement, non- Locational Clearance government and government organizations / o Location Map entities in the promotion and development of o Barangay Clearance cooperatives and in carrying out government o Lease Contract policies; and o SEC Registration Documents To undertake other activities for the effective and o Occupancy Permit (Building/Unit) efficient implementation of the provisions of the o Business Permit Application Form Cooperative Code. 4) COOPERATIVES ORGANIZATIONAL STRUCTURE ̵ Cooperatives have a unique governance structure that reflects the fact that they are owned and controlled by their members. ̵ Effective cooperative operations depend on FOUR COMPANY VISION AND MISSION GROUPS: members, the board of directors, management, and employees. The MISSION STATEMENT - defines what an organization ̵ to realize the economic, cultural and social needs does. of the organization's members and its surrounding The VISION STATEMENT - defines where it wants to go, the community. purpose statement defines why it exists, ̵ Cooperatives often have a strong commitment to their community and a focus on strengthening the community they exist in or serve. EXAMPLE 1: UNILEVER OBJECTIVES AND PURPOSES FOR WHICH PATCOMC IS FORMED: To encourage thrift and savings mobilization among members for capital formation; To create funds in order to grant loans for productive and providential purposes to its members; To provide goods and services and other requirements of the members; To engage in aviation and other support services; To promote the cooperative as a way of life for improving the social and economic well-being of the people; 5 EXAMPLE 2: BDO BUSINESS OPERATIONS KEY BUSINESS -are the actions that Corporate Mission companies carry out To be the preferred bank in every market we serve. OPERATION daily to grow the firm's value and increase profits. Corporate Vision To be the leading Philippine bank and financial services company that empowers customers to achieve their goals and aspirations, TYPES OF BUSINESS OPERATIONS: combining our entrepreneurial spirit, international perspective,  PRODUCTION -refers to the business and intense customer focus to deliver a personalized banking operations that involve changing inputs into experience that is easy, straightforward, and convenient, while final goods ready to be purchased by taking pride in building long-term relationships and finding better ways to deliver offerings of the highest standard. customers.  PROCUREMENT -refers to any activity that takes place to obtain all the goods and services needed for a business to run its daily - a symbol or design used to operations. COMPANY LOGO identify a company or  QUALITY ASSURANCE -is a type of business organization, as well as its products, services, employees, etc. operation that makes sure that the goods and services produced are of high quality.  CUSTOMER SERVICE -ensures that all the concerns of a customer are addressed. COMPANY GOALS AND OBJECTIVES -construction of an BUSINESS GOALS - represent the direction in which a INTERNAL organization with regards company intends to go and define what the organization to how tasks are assigned, wants to achieve. ORGANIZATION communication flows, BUSINESS OBJECTIVE - specifies the methods and paths hierarchy levels are maintained and other operations that that can help a business achieve that goal. help an organization achieve its goals. TYPES OF BUSINESS GOALS: 1. FINANCIAL – specifies a financial target. -refers to how various task 2. GROWTH – aims to expand part of the ORGANIZATIONAL are divided; resources are business. STRUCTURE deployed and how 3. EMPLOYEE – helps with career advancement, units/departments are coordinated in an organization. life-work balance. - includes a set of formal tasks assigned to individual and 4. PROCESS – improves procedures that optimize departments, formal reporting relationship, and a design to the business. ensure effective coordination of employees across 5. SOCIAL – promotes diversity or sets departments/units with the help of authority, reliability, sustainability goals that improve the responsibility and accountability, which are fundamental to environment. developing organizational structures and workflow based 6. TIME-BASED – applies a timeline of days / on their clear understanding by all employees. weeks/ months / years to accomplish tasks. ORGANIZATIONAL CHART - shows the hierarchy or chain of command in your business. EXAMPLE: DEL MONTE GOALS “Our goal is to promote sustainability to achieve our business IMPORTANT PRINCIPLES IN ORGANIZATIONAL objectives, environmental stewardship, and social responsibility.” STRUCTURE: “The evidence shows that long-term financial success goes ▪ Authority – Is the right to make decisions, issue hand in hand with social responsibility, environmental orders and allocate resources to achieve stewardship and good governance.”- GEORGE KELL, UN desired outcomes. Global Compact 6  ▪ Reliability – Is the degree to which the project into how the business is operated. You should also include team member can be dependent on to ensure any board members, directors, and officers. the success of the project with a sound and consistent effort. MANPOWER REQUIREMENTS / JOB ANALYSIS ▪ Responsibility – This is an obligation incurred JOB ANALYSIS – deals with bringing together and by individuals in their roles in the formal evaluating the information about the content and organization effectively perform assignments requirements of individual regarding the specific job in or to work on the success of the project with or terms of activities involved and attributes needed to without guidance or authorization. perform the activities. The manpower is composed of the ▪ Accountability – The extent to which an partners only from the partnership. Each should possess individual or project team is answerable to the the qualification in order to undertake an effective and project stakeholders and provides visible efficient arrangement of resources in the organization. evidence of action. The JOB ANALYSIS - is performed by enumerating all (Accountability = Authority + Responsibility) positions need for the business to operate. EXAMPLE: PRINCIPLES AND PRACTICES JOB TITLE: SALES ASSISTANT OF THE BUSINESS JOB DESCRIPTION -includes an overview, role summary, catalog of responsibilities, and the qualifications and INTERNAL OPERATIONS BUSINESS PRINCIPLES AND experience required for a particular role PRACTICES: Maintains relationship with clients Businesses that are incorporated must have a Sells products board of directors. Do you have a conflict of Participates in team effort interest policy in place? JOB SPECIFICATION -an official document which describes Do you offer services where clients need to be the duties, required knowledge, skills and abilities, and screened for eligibility for financial aid or social minimum qualifications of State jobs services or are there other prerequisite Male or female requirements such as being a senior citizen, must be 18 years old above minority, or disabled? possesses bachelors degree Do you have hiring and employee training and with experience management practices in place? Do you have an overall corporate philosophy or work culture that inspires, encourages, or offers incentives to employees? RECRUITMENT, SELECTION Do you have an anti-discrimination policy in place? AND HIRING OF WORKERS EXTERNAL BUSINESS PRACTICES AND PRINCIPLES: Do you have a customer policy or philosophy? 1. RECRUITMENT PLANNING Examples of client/customer philosophies include: - It is where the vacant positions are analyzed and We do not serve clients; we team with clients to described. meet their goals. - It includes job specifications and its nature. We value creativity and imagination and use these - The potential employee should be qualified, to our client’s advantage. experienced with capability to take responsibilities Our employees maintain high ethical standards required to achieve the objectives of the organization. that reflect on how we treat our clients. 2. STRATEGY DEVELOPMENT - This is on how or which strategy to adopt for recruiting give a brief overview the potential employee for the organization. PROFESSIONAL SKILLS of all founders, AND RESUMES employees, and 3. SEARCHING partners involved in - Once the line manager verifies and permits the existence the business that will be contributing their skills and input of the vacancy, the search for potential employee starts. 7  4. SCREENING (6) CHECKING REFERENCES - It is where the process of filtering the applications of the potential employee for further selection process. (7) MEDICAL EXAMINATION 5. EVALUATION AND CONTROL Here the physical and mental fitness of the candidate are - The effectiveness and the validity of the process and checked to ensure that he is capable of performing the job. methods are assessed. Thus, this stage is not rigid and can take place anywhere in the process. The medical examination is an important step in the SELECTION PROCESS / HIRING OF WORKERS: selection process as it helps in ascertaining the applicant’s physical ability to fulfill the job requirements. (1) PRELIMINARY INTERVIEW (8) FINAL SELECTION There is an initial meeting to gather basic information about how an applicant's goals, skills and qualifications can The candidate who qualifies all the rounds of a selection benefit a company's needs process is given the appointment letter to join the firm. (2) RECEIVING APPLICATIONS Thus, the selection is complex and a lengthy process as it involves several stages than an individual has to qualify Once the individual qualifies the preliminary interview he is before getting finally selected for the job. required to fill in the application form in the prescribed format. This application contains the candidate data such as age, qualification, experience, etc. POLICIES AND REGULATIONS: This information helps the interviewer to get the fair idea about the candidate and formulate questions to get more I. RECRUITMENT POLICY information about him.  the potential employee must meet the requirements and (3) SCREENING APPLICATIONS passed the step-by-step process of the recruitment. Once the applications are received, these are screened by II. TIME PERIODS POLICY the screening committee, who then prepare a list of those applicants whom they find suitable for the interviews.  Employees must follow established work schedules the The shortlisting criteria could be the age, sex, qualification, usual work schedule is 48 HOURS PER WEEK, Monday experience of an individual. Once the list is prepared, the through Friday. qualified candidates are called for the interview either  Normal work hours at ABC Company are 8:00 am to 6:00 through a registered mail or e-mails pm.  REST PERIODS are an employment privilege. Rest periods (4) EMPLOYMENT TESTS may not be “saved” to shorten the employee’s workday, and to extend lunch break. Abuse of rest period may In order to check the mental ability and skill set of an result in loss of the privilege. individual, several tests are conducted. Such as intelligence tests, aptitude tests, interest tests, psychological tests, III. EMPLOYEE COMPENSATION AND BENEFITS personality tests, etc. POLICY These tests are conducted to judge the suitability of the candidate for the job.  COMPENSATION -refers to the payment employees receive in exchange for their labor, including wages, (5) EMPLOYMENT INTERVIEW salaries, and bonuses. This monetary compensation is straightforward and is The one-on-one session with the candidate is conducted to usually determined by the role, experience level, and gain more insights about him. Here, the interviewer asks market standards. questions from the applicant to discover more about him  EMPLOYEE BENEFITS -are non-wage compensations that and to give him the accurate picture of the kind of a job he supplement the salary package. These can include health is required to perform. insurance, retirement plans, paid time off, and other perks, such as gym memberships. 8  THE LABOR CODE V. TERMINATION POLICY - is among the most important laws companies need to follow when it comes to employing  It is beneficial for all parties that the EMPLOYMENT workers. SEPARATION PROCESS is as clear as possible so - outlines the employment practices and relations, misunderstandings and distrust between the employee including employee benefits and compensation: and the organization can be avoided. Minimum Wage  This termination of employment policy applies to all Overtime Pay prospective or current employees of the organization in Night Differential regards to possible separation of employment. Holiday Pay 13th Month Pay Maternity Leave VI. RESIGNATION POLICY  Employees must give their written notice letter at least LAWS ON MANDATORY CONTRIBUTIONS 30 days (one month) in advance. The country also has several laws that govern an employee’s mandatory contributions, which give them benefits. These laws include: VII. COMPLAINTS & GRIEVANCES A. REPUBLIC ACT 8282 (SOCIAL SECURITY ACT OF  GRIEVANCE PROCEDURE POLICY - outlines a business's 1997): processes and guidelines for filing a formal complaint This law ensures that contributions to the Social regarding a workplace, job, and/or coworker dispute or Security System (SSS) - provide unemployment, issue. maternity, injury, sickness, and disability benefits,  Businesses implement a grievance procedure policy to and also serves as a retirement plan for private help address employee concerns in a constructive and employees. fair manner. B. REPUBLIC ACT NO. 9679 (HOME DEVELOPMENT EMPLOYEES CAN FILE GRIEVANCES WHEN: MUTUAL FUND LAW): They have been victims of workplace harassment. Known as the PAG-IBIG Fund Law, this act allows Their health and safety have been compromised. employees to access low-interest housing loans They've witnessed poor supervisor and/or and other investment opportunities through their management behavior. contributions. There are unjust changes made to the employment agreement. C. REPUBLIC ACT NO. 10606 (NATIONAL HEALTH Policy guidelines are violated. INSURANCE ACT OF 1995): There is a dispute between coworkers, suppliers, This law mandates that contributions to PhilHealth and/or management. provide healthcare services access to all employed persons and their dependents. VIII. CODE OF ETHICS TAX LAWS - Taxation laws also affect an employee’s  Outlines a company’s ethical principles that govern all compensation. employee decisions and behavior. - These laws, for instance, set the ceiling of salaries and benefits that would be excluded from tax computations. PROJECT SCHEDULE IV. ROUTINE WORK POLICY PRE-OPERATING SCHEDULE [TIME ALLOTTED]  The employee’s working time starts from 8:00 AM TO 6:00 PM. 1. Conduct Feasibility Study [June 27, 2017 – Oct 2017] During this period, the proponents will conduct a study about the proposed product and will be able to investigate 9 whether the business is viable or not. In order to examine 7. Hiring and Training of Employees [April 1-30, 2018] the product's viability, the proponents will gather data with Selection of the qualified applicants will be done in this the use of various instruments and techniques such as period. After being qualified, orientations will be given to questionnaires, interviews and information from legit employees to have knowledge regarding the business. websites, books, journals and other sources of essential Preparations such as the procedures and control in the data with regards to the study. manufacturing of the product, handling of cash and the right approach to customers will be taught to employees in order to build up their confidence and increase productivity 2. Putting up Equity [July 14, 2017 - Oct 2017] that will help them sustain motivation in their current state, CAPITALIZATION is crucial in establishing a business as the as well as in the future. There are also factors to consider business will not be materialized without it. Finances of the that significantly influences the employees on how they will proposed business must be planned wisely during the maintain a positive impression in the working environment period. The proponents will contribute equally and ample by recognizing their hard works and advocating balance in time is given in order to complete the amount needed for life and work. Safety procedures will be extensively the operation of the business. The proponents agreed to employed to assist the employees with working safely. contribute P14,285.71 at the end of the September. 8. Promotional Campaign [May 1-31, 2018] 3. Registration [Nov 1, 2017 - Dec 31, 2017] Since the setting up of the business is nearly approaching, All the legal procedures and requirements for the start of this is the best time to endorse the product. Having enough the business must be accomplished during this period. time to notify people about the product by giving leaflets Securing business permits from Municipal or City or brochures, posting through social media platforms and Government, Security and Exchange Commission (SEC), blog sites, and informing the public verbally will make the Bureau of Internal Revenue (BIR), Department of Trade and business known. Industry (DTI), Department of Labor and Employment The goal of the proponents is to make the product well- (DOLE), Social Security System (SSS) and Philippine Health known in order for people to recognize and buy the Insurance Corporation (PhilHealth) must be completed. product. 4. Plant Rental and Renovation [Jan 1-31, 2018] 9. Start of Normal Operation [June 2018 Onwards] During this period, the proponents are going to locate the After accomplishing all the necessary requirements, the proposed business inside Centro Escolar University 9 business will start to operate. Continuous promoting of Mendiola St, San Miguel, Manila, 1005 Metro Manila. The product is still needed and meeting the demands of the existing space inside the campus is widely available for customers is to be obtained for the customers' satisfaction. storing, distributing and processing inventory and supplies mainly related for the production of output. The proponents assumed to spend in leasing the facility for a total cost of P3000 per month. Refurbishing the leased space will come up with putting up of tarpaulins and posters. 5.Canvassing and Acquiring of Equipment [Feb 1-28, 2018] For this duration, the proponents will start to canvass and acquire equipment that is needed for the manufacturing and distributing of the product. 6. Canvassing and Purchasing of RM [March 1 - 31, 2018] The proponents will examine properly the amounts of raw materials in order to acquire the ingredients at a lower cost. Searching for suppliers is also taken into consideration in order to avoid negative fluctuations of the prices of raw materials needed. 10 CHAPTER 3: TECHNICAL STUDY PRODUCT PROTOTYPE - is a preview or early sample of a product or idea you plan TECHNICAL ASPECT - helps you determine the efficacy of to invest in and eventually reproduce in large quantities. your proposed project by examining the details of your intended process, including materials and labor, logistics PURPOSE: and technology related to producing, delivering and ✓ providing a real, working sample that can be tested and tracking the products or services you intend to develop. evaluated for errors and efficacy ✓ aids designers when it comes to the visualization and manufacturing of the real product. HOW TO CONDUCT A ✓ to save money and time in the long run. The more you TECHNICAL FEASIBILITY STUDY: know before you invest in mass production, the better decisions you can make to avoid pitfalls. TECHNICAL ASPECT [17 PARTS] THE PROTOTYPE DEVELOPMENT PROCESS: HOW TO  INTRODUCTION PROTOTYPE A PRODUCT  OBJECTIVES OF THE STUDY  TECHNICAL PRODUCTION DESCRIPTION PHASE 1: DEFINE THE PRODUCT AND ITS FEASIBILITY  Research - learn whether your idea is worth the investment  PRODUCT PROTOTYPE  Initial Specifications and Drawings  PRODUCTION PROCESS  PRODUCTION SCHEDULE PHASE 2: DETAILED DESIGNS  ALPHA TESTING - conduct a risk analysis,  MACHINERY AND EQUIPMENT answering questions such as whether the  PLANT LOCATION AND LAY OUT materials are affordable and sustainable. Your  BUILDING/OFFICE/PLANT goal is to identify any threats to product development, your supply chain, and  RAW MATERIALS REQUIREMENT profitability.  PACKAGING  BETA TESTING - gathering feedback on its  PRODUCTION SUPPLIES AND INVENTORY appearance and functionality PHASE 3: FINAL DESIGN  OFFICE SUPPLIES  results in a manufacturer - ready product  FURNITURE AND FIXTURES design.  UTILITIES NEEDED  to define the metrics that determine quality.  QUALITY AND SAFETY MEASURES  WASTE DISPOSAL SYSTEM TYPES OF PROTOTYPING: 1. SKETCHES AND DIAGRAMS - using a ruler and ink, a paper. 2. 3D PRINTING OR RAPID MODEL - create a realistic model of a design using a computer and printing machine. 3. PHYSICAL MODEL - made with anything from building bricks to craft paper. 4. ROLE-PLAY through virtual or augmented reality. 11  5. FEASIBILITY - used to test certain features that are THINGS TO CONSIDER: added at a later stage in the design process. » What are possible locations for the facility (office/manufacturing plant)? 6. WORKING MODEL - to see if it actually functions » What size facility is needed? the way you intended. » What are the costs involved in the building? » Do you need to fit it out? 7. VIDEO PROTOTYPE - animated video or even a » How much will it cost to get all necessary utilities simulation that explains and graphically represents connected? a project. (video games) » Does the proposed location have adequate access to infrastructure and services such as highways, railway and utilities? » Will you need to build your own facility, or purchase an existing one? PRODUCTION PROCESS / » Where will the facility be located in relation to your PROCESS FLOW customers? - discusses how the products will be produced, specifying » Who will be responsible for transport of goods between each step that will be involved, and the time involved. the facility and the market? - shown in a process flow chart where some of the following » What are the costs involved? symbols will be used MACHINERY & EQUIPMENT MACHINERY - refers to machines collectively or a specific machine used for a particular function. - It typically involves moving parts and is often powered by electricity, fuel, or other energy sources. - Ex: Lathes, cranes, tractors, and conveyor belts. Functionality: Machinery usually performs a specific mechanical function or process, such as cutting, lifting, or transporting materials. Complexity: Generally, more complex than TRANSPORTATION STORAGE OPERATION equipment, as it often includes multiple INSPECTION DELAY EQUIPMENT, components working together. MACHINERY, FURNITURE AND FIXTURES - discusses or describes the technology that will be used– EQUIPMENT - is a broader term that encompasses tools, machinery, and other apparatus that are necessary for a manual, mechanical, automated, or robotics. particular purpose or activity. - if production process is done manually, then the use of - Ex: Hand tools (like hammers and wrenches), office equipment, machinery, furniture and fixture will be limited. equipment (like computers and printers), and safety - should include the description, the specification, and the equipment (like helmets and gloves). prices of the listed assets. Functionality: Equipment can be used for various tasks, not limited to mechanical processes. It includes items that may not have moving parts. Complexity: Equipment can range from simple BUILDING tools to complex machines but is not exclusively defined by mechanical function. - It should determine whether it is necessary to put up, to rent, or to lease a building. Identify and individually list according to type & use, - If a building is to be constructed, he should provide a specifications, capacities & costs must be described in computation for the cost of the building. This includes the detail, the origin of the machinery & equipment, whether determination of the life of the building as well as the local or imported, the manner of & cost of transporting depreciation method to be used. them must be indicated, what type of equipment and 12 technology will the business need to produce its the availability of cheap or moderately-priced product/service? utilities such as power, water, or fuel the combined cost of transporting raw materials The equipment suppliers: &fuel to the site Who are the potential suppliers of the equipment? the proximity to distributing outlets Where are they located? the availability of skilled & unskilled labor What sort of service and warranties do they provide? the maps & charts of the proposed site must be How long will it take to acquire the equipment and included begin operations? LAYOUT / FLOOR PLAN FURNITURES AND FIXTURES - discusses how the place (factory, store, or office) looks like FURNITURE: This category can include anything you sit on and how it is arranged. or use to hold other objects, such as chairs, tables, desks, A GOOD LAYOUT is characterized by minimum material cupboards and bookshelves. handling, effective space utilization, smooth workflow, FIXTURES: This category includes items that serve a safe & conducive working area for the workers, safety practical or functional purpose, such as lighting, wall and sanitation facilities, & flexibility of arrangements mounts, whiteboards and doors RAW MATERIALS & SUPPLIES PACKAGING - The required raw materials should be listed down and the - promotes product recognition, allowing customers to basis for their selection must presented. identify, describe, and differentiate items from similar - The descriptions and specifications on their physical, commodities. mechanical, and chemical properties must also be given, - the packages' different colors, sizes, fonts, shapes, and the current and prospective cost of raw materials, the graphic designs facilitate brand recognition, which occurs availability and continuity of supply, and the current when consumers identify a particular product brand by its prospective sources should also be included, and the attributes volume required at various phases of operations must be 4 C’s: clearly presented. CLARITY CREATIVITY CONSISTENCY CONSUMER-CENTRICITY PRODUCTION SCHEDULE - a flexible document that details all variables relevant to production for a given time period. LOCATION - it contains information on what must be produced, who will produce it, where, when, and how. - The proponent is required to gather maps in order to show where the proposed project will be located. - In the discussion, the proponent should also describe the distance of the proposed project from its competitors as well as its supply of raw materials, public markets, roads, communication facilities. - The proponent need to discuss also the environmental conditions of the place whether it be rural, urban, or near schools. the accessibility to, & availability of, raw material source 13  MARKET FEASIBILITY UTILITIES AND OTHER - is used to determine the extent to which the goods/ OPERATING COSTS services be generated by the project are needed or - fuel, water, and electricity. demanded and to design the appropriate marketing - also includes other costs that the proposed project will strategies and plans that will help ensure that the incur like supplies, telephone, telex, maintenance, repairs, project’s outputs will reach and be accepted by the insurance, taxes, licenses, and SSS contribution. target users. - The provision foreseen costs such as miscellaneous cost and contingencies is also included. MARKETING ASPECT - The utilities must be determined in relation to the - seeks to determine the opportunities and threats, the production schedule and capacity utilization defined target market, the total demand and supply of the alternative sources of these utilities and the feasibility of product, the competition and the marketing program their use must also be described. which refers to the product, price, place and promotional strategies. PRODUCTION COSTS HOW A MARKET FEASIBILITY STUDY DIFFERS FROM A MARKETING PLAN? - includes the initial raw material costs, labor costs, FEASIBILITY STUDIES MARKETING PLAN operating costs, and other costs, and other costs to are done on ideas, maps out specific ideas, produce the product. campaigns, products, strategies, and campaigns LABOR COST - wages benefits and payroll taxes paid to processes, and entire based on feasibility study employees businesses, and they look investigations and are OPERATING COST - expense that a business incurs thru its at how things work, if they intended to be normal operations (rent, equipment, marketing, inventory will work, and if there are implemented. cost) potential problems paints a more detailed picture of how the company will use WASTE DISPOSAL marketing to achieve the goals laid out in the - a streamlined process that organizations use to dispose business plan. of, reduce, reuse, and prevent waste. A PROPONENT CANNOT CONTINUE FURTHER STEPS OR PROCESS IF THE RESULT OF THE MARKET FEASIBILITY STUDY IS NEGATIVE. BUT THERE ARE OTHER CHOICES TO FOLLOWS: CHAPTER 4: MARKETING STUDY 1. Modify market study broadened to include other market elements were not included in the study DAILY TIME SPENT ON MEDIA IN PHILIPPINES 2024 previously (e.g. find other markets were not included in The average amount of time each day that internet users the study to increase sales and thus increase cash flow) aged 16-64 spend with different kinds of media and devices 2. Find any other investment alternatives to find a new project. That market study prepared to achieve and Time Spent Using the Internet 8H 52M assure, some of the main objectives of the project, Time Spent Watching Television (Broadcast and which cannot start without specifying these goals 3H 10M Streaming) confining it broadly. Time Spent Using Social Media 3H 34M Time Spent Reading Press Media (Online and 1H 11M Physical Print) MARKETING STUDY Time Spent Listening to Music Streaming Service 1H 59M - is the process of perceiving, understanding, Time Spent Listening to Broadcast Radio 0H 44M stimulating, and satisfying the customer needs, wants Time Spent Listening to Podcast 31.4% and expectations through the goods and services of Time Spent Playing Video Games on ca Games specially selected target market which is better than 68.6% Console the competitors. 14 - The process of the business to build strong customer 6. (Why this way and not another? How can you back that relationship in order to gain loyalty from them. up?) 7. How much: What is the estimated level of sales? 8. What makes you expect to meet this forecasted level WHAT DOES A MARKETING of sales turnover? FEASIBILITY STUDY CONTAIN? 9. What evidence is there to prove that this is a realistic estimation and can be achieved? 10. Whereabouts (area & site) What are your reasons for MARKETING ASPECT [19 PARTS] thinking this is the ideal location, particularly if you are counting on a local customer base? ❑ INTRODUCTION ❑ OBJECTIVES OF THE STUDY ❑ MARKET DESCRIPTION/ TARGET MARKET PROFILE MARKET DESCRIPTION ❑ SWOT ANALYSIS  describes the targeted segments in detail and provides ❑ PLAN OF DISTRIBUTION context for the marketing strategies and detailed ❑ MARKET SEGMENTATION action programs  It is the opportunity to get particular about the ❑ DEMAND ANALYSIS (HISTORICAL DEMAND DATA following: AND PROJECTED DEMAND DATA) Who actually will be interested in your service or ❑ SUPPLY ANALYSIS (HISTORICAL SUPPLY DATA product? AND PROJECTED SUPPLY DATA) What is the size of the market? (the total number ❑ DEMAND AND SUPPLY GAP AND ANALYSIS of potential buyers of a product or service within a given market) What are their ages? ❑ COMPETITIVE EDGE Where do they live? ❑ CURRENT MARKET CONDITION What gender are they? ❑ LIST OF COMPETITORS AND THEIR PRODUCTS AND PRICES ❑ PROPOSED MARKETING STRATEGIES SWOT ANALYSIS ❑ POSITIONING STRATEGY ❑ PRICING STRENGTHS What are you doing well ❑ UNIQUE SELLING What sets you apart? ❑ SALES STRATEGY What are your good qualities? ❑ FUTURE PLANS AND STRATEGIC OPPORTUNITIES WEAKNESSES ❑ QUESTIONNAIRE SURVEY What could you improve? Are resources adequate What do others do better than you? OPPORTUNITIES What are your goals? Are demands shifting IMPORTANT QUESTIONS FOR THE MARKET STUDY (MS): How can it be improved? In this context, several questions to be asked, THREATS 1. What is the main purpose to study the market? What threats could harm you? 2. What you are going to sell? (Why this product not the What are factors outside of your control? other? How can you be sure about what you are proposing?) Make no definite statement unless you can back it up! 3. Who are your customers? DISTRIBUTION PLAN 4. (Why them? What makes you so sure of this?)  a detailed strategy that outlines the steps required to 5. How will you operate and how will you sell your move a product or service from production to the final product? customer. 15  TYPES OF DISTRIBUTION CHANNELS: race, gender, family structure, educational level, occupation, and income level. one of the simplest A. DIRECT CHANNEL and most commonly used forms of segmentation - allows the consumer to make purchases from because the products and services we buy, how we the manufacturer. use those products, and how much we are willing - This direct (and short) channel may mean to spend on them is most often based on lower costs for consumers because they are demographic factors. buying directly from the manufacturer. Example: A company that manufactures (b) GEOGRAPHICAL SEGMENTATION: potential clothes and sells them directly to its customers customers have needs, preferences, and interests using an e-commerce platform is utilizing a that differ according to their geographies, direct distribution channel. understanding the climates and geographic regions Example: Telemarketing sales which allow you of customer groups can help determine where to to reach and distribute to consumers sell and advertise, as well as where to expand your business. B. INDIRECT CHANNEL - allows the consumer to buy the goods from a (c) FIRMOGRAPHIC SEGMENTATION: take into wholesaler or retailer. consideration things like company size, number of - Indirect channels are typical for goods that are employees and would illustrate how addressing a sold in traditional brick-and-mortar stores. small business would differ from addressing an enterprise corporation. C. HYBRID CHANNEL - use both direct channels and indirect channels. (d) BEHAVIORAL SEGMENTATION: divides markets by - A product or service manufacturer may use a behaviors and decision-making patterns such as retailer to distribute a product or service, in purchase, consumption, lifestyle, and usage addition to also making sales directly with the consumer. A toothpaste company (e) PSYCHOGRAPHIC SEGMENTATION: takes into With this example, a toothpaste company account the psychological aspects of consumer wants to have its product sold at as many behavior by dividing markets according to lifestyle, locations as possible to reach consumers so it personality traits, values, opinions, and interests of selects intensive distribution through both consumers. Large markets like the fitness market direct and indirect outlets. It sells online via a use psychographic segmentation when they sort website and ships directly to customers but their customers into categories of people who care also uses indirect methods like wholesalers and about healthy living and exercise. distributors to sell more. With an intensive distribution strategy, the toothpaste gets sold at places like: Supermarkets Convenience stores DEMAND ANALYSIS Warehouses  the process of understanding the customer demand for Big-box retailers a product or service in a target market. E-commerce websites  Companies use demand analysis techniques to determine if they can successfully enter a market and generate expected profits to expand their business operations. MARKET SEGMENTATION  It also gives a better understanding of the high-demand  determines how your organization divides its markets for the company’s offerings, using which customers or cohort into smaller groups based on businesses can determine the viability of investing in characteristics such as, age, income, personality traits each of these markets. or behavior. STEPS IN MARKET DEMAND ANALYSIS: TARGET SEGMENTATION 1: MARKET IDENTIFICATION (a) DEMOGRAPHIC SEGMENTATION: It includes the Surveys or customer feedback can be leveraged to demographic features of your market such as age, determine the current customer satisfaction levels. 16  Any comments indicating dissatisfaction can be Another example can be impact of increase in taken into consideration for planning wages in the market on supply. The labor cost improvements that will eventually enhance would go up and it will drive the costs of product customer satisfaction. along with it. If the supply has to be kept constant, the costs would go up and if costs have to be kept 2: BUSINESS CYCLE constant the supply would go down hence driving After identifying the potential markets, the next the prices up if the demand is unchanged. These step is to assess the stage of the business cycle that are some questions which the supply analysis tries each market is undergoing. to answer. A business cycle ideally comprises of three stages: emerging, plateau and declining. SUPPLY ANALYSIS PARAMETERS: EMERGING STAGE - markets that are in the emerging stage show higher consumer PRODUCT’S As the price rises suppliers are demand and low supply of current products or OWN PRICE willing to produce more. services. INPUT PRICES If the price of inputs goes up, the PLATEAU STAGE - depicts the break-even level cost of producing the good of the market, where the supply of goods increases. And therefore, at each meets the current market demand. price producers need to sell their DECLINING STAGE - indicates lagging consumer good for more money. So, an demand for the company’s goods or services. increase in the price of inputs leads to a decrease in supply. 3: PRODUCT POSITION Once the market and their respective business TECHNOLOGY Technology leads to an increase in cycles have been reviewed, companies must the efficiency of the production develop products or tailor their services to meet a process which results in the specific niche in the market. Products must be shifting of the supply curve to the differentiated from the peers in the market so that right. they meet the specific needs of consumers, and EXPECTATIONS If suppliers expect prices to go up thereby create higher demand for the company’s OF THE in the future, they decrease their goods or services. MARKET supply today and save inventory to sell for a higher price in the 4: EVALUATE COMPETITION future. A crucial factor of demand analysis is determining the number of competitors in the market and their NUMBER OF If the number of producers current market share. Markets in the emerging PRODUCERS’ increases, then we can expect the PRESENT supply curve to shift outward to stage of the business cycle tend to have fewer the right, thus increasing the competitors. This translates to a higher profit supply at every price. But this margin for your company. additional supply may result in a surplus, and the extra competition may cause prices to drop. SUPPLY ANALYSIS  is a research and analysis done to understand the supply trends and responses to changing market and production variables. DEMAND AND SUPPLY  supply analysis takes into account the production costs, GAP ANALYSIS raw material costs, technology, labor wages etc.  The GAP - refers to the difference between the supply IMPORTANCE OF SUPPLY ANALYSIS: and demand for that product. helps manufacturers to analyze the impact of - it means a consumer-need that supply has not yet production changes, policies on increase or met. decrease in supply of finished goods. e.g. newer - for companies, a gap in the market represents an upcoming technology can help produce more opportunity for it to widen its customer base goods in same amount of time. 17  "People would buy a rain- blocking device! I could call it create products that are always up to an UMBRELLA!" extremely high-quality standard, making their high cost seem worth it. - A new product consumers would like. Demand for They also worked to create exclusivity and an existing product in a market where it is not for make their products a status symbol since so sale. An improved product people would like. few people can get their hands on their handbags each year. GAP IN THE MARKET ATTRIBUTES: It is something original. In other words, it is new; 3.) FOCUS there is nothing like it in the market. - uses an approach to identifying the needs of a It already exists. However, an upgrade or niche market and then developing products to improvement would boost sales significantly. align to the specific need area. The product already exists. However, nobody has - Ex: DIET Coke of Coca-Cola company. The Coca- tried to sell it in a new market. Introducing it to a Cola Company created a DIET COKE, especially new market would increase sales considerably. for those with diabetes or related condition. Since we know that soft drink consumes a lot HOW DO YOU CLOSE THE GAP? of sugar, people who have a health condition Reconsider your offerings like diabetes stop drinking coke or any A gasoline station that offers an "average" level of beverages. service at prices higher than those of self-service stations might either target the low cost segment, lowering prices and cutting costs, or targeting a premium service and "beefing up" service. CURRENT Toyota started the Lexus division for consumers MARKET CONDITION who demanded more service than would have been cost effective to offer to its traditional  are some of the enterprise environmental factors that customers. can affect many aspects of a project.  The conditions affect what can be purchased and at what prices. It also affects the prices that can be set for any products, services, or results created by the COMPETITIVE EDGE project.  By differentiating your product, service, personnel or  the size of the market, the business's competitors, and brand, you can establish a unique position in your the proportions of large and small businesses in the market. market. Primary research - includes focus groups, polls, and TO BUILD A COMPETITIVE ADVANTAGE, A COMPANY surveys. CAN USE ONE OF THREE MAIN METHODS: Secondary research - includes academic articles, infographics, and white papers. 1.) COST LEADERSHIP - is to become the lowest cost manufacturer or provider of a good or service. - Ex: Cebu Pacific Airline. It has been known as DIRECT AND INDIRECT the low-cost carrier in the Philippines. They COMPETITORS want all their passengers to have an attainable DIRECT COMPETITORS - are companies offering the same low cost but high quality services. products or services as you. These companies sell to the same types of clients (target audience) and markets. 2.) DIFFERENTIATION - involves developing unique goods or services Ex: Nike and Adidas that are significantly different from INDIRECT COMPETITORS - are businesses with different competitors. products or services that target the same client needs as - Ex: Hermes. This luxury brand is home to some your business. Ex: Starbucks and Dunkin of the most expensive clothes and accessories, but that doesn’t stop thousands of people from buying their products. They made sure to 18  TYPES OF MARKETING CHANNELS: PROPOSED ✓ Digital advertisements MARKETING STRATEGIES ✓ Emails ✓ Events 4P’s OF MARKETING: ✓ Influencer marketing PRODUCT - the good or service being marketed to the ✓ Search engine optimization target audience ✓ Content marketing o What is your product? ✓ Social media o What does your product do? ✓ Word-of-mouth o Does the product meet an unfilled need or provide ✓ Traditional marketing a novel experience? o Who is your product’s target audience? ▷ DIGITAL ADVERTISING - refers to online ads o How is your product different from what others delivered through digital channels such as offer? search engines, social media, websites, and PRICE - the cost of a product or service. mobile apps. o What is the price range of your product’s ▷ EVENT MARKETING - involve hosting or competitors? participating in trade shows, conferences, o What is the price range of your target audience? product launches, webinars, and workshops to o What price is too high for your audience? What promote a brand, product, or service. price is too low? ▷ INFLUENCER - is a social media marketing o What price best fits your target market? approach that uses endorsements and product PRICING: mentions from influencers. ▷ PREMIUM PRICING: High price now, high price ▷ SEO - is focused on optimizing your content to in the future get ranked as high as possible on search Ex: Rolex, Chanel, Gucci, Apple engines ▷ PENETRATION PRICING: Low price now, high ▷ CONTENT MARKETING - involves the creation price in the future and sharing of online material (such as videos, Ex: Netflix made classic use of the strategy, blogs, and social media posts) by rapidly penetrating the streaming ▷ SOCIAL MEDIA MARKETING - is a form of market with low subscription costs and digital marketing that leverages the power of building up a loyal customer base. popular social media networks to achieve your ▷ PRICING SKIMMING: High price now, low price marketing and branding goals. in the future ▷ WOM - when a consumer's interest in a Ex: Electronic products (Android Phones) company's product or service is reflected in ▷ LOSS LEADER: Low price now, low price in the their daily dialogues. future ▷ TRADITIONAL MARKETING - is any form of Ex: Grocery store items (milk, egg, rice), marketing that uses offline media to reach an Inventory Management audience (print ads, billboards, TV) PLACE - where you sell your product and the distribution channels you use to get it to your customer. o Where will you sell your product? o Where does your target audience shop? UNIQUE SELLING o What distribution channels are best to reach your HOW TO CREATE A UNIQUE SELLING PROPOSITION target market? PROMOTION - how you advertise your product or service. o What is the best time to reach your target audience? o What marketin