CHAPTER 1

EXECUTIVE SUMMARY

INTRODUCTION

The young coconut fruit locally known as buko is a staple in Filipino

delicacies and cuisine. Not only is there an abundant supply of buko everywhere

in the country but Filipino also loves its distinct taste and versatility.

The young coconut pie is a is a traditional Filipino pastry that is filled with

strips of tender and young coconut meat. It is considered to be the native Filipino

dish.

With the introduction of an advance freezing technique and with the goal

of making this traditional Filipino dish popular throughout the world, the pie-

makers of the country have started exporting the dish and exploring new markets

within the country. The young cocunut pie is a delicacy in the northern regions of

the Philippines, however it still not as popular in most areas in Mindanao.

This feasibility study therefore is conducted to determine if the business of

producing young coconut pie here in the City of Surigao is a viable project.

GENERAL OBJECTIVES

1. To have better information that would help us to increase our knowledge

regarding the proposed product.

2. To enhance the quality and output of the research based on the product that

we proposed.

3. To gather current and pertinent information from different references that

would help in the establishment of the proposed business.

4. To determine if there is a market for the young coconut pie here in Surigao

City and its neighboring towns.

MANAGEMENT FEASIBILITY SUMMARY

The form of organization is a sole proprietorship. It is a form of

organization where is only one owner and it is the easiest and less expensive

form of ownership to organize compared to partnership and corporation. This

form of business has to comply with the following requirements to have a legal

existence: registration to the Department of Trade and Industry (DTI), registration

to the Bureau of Internal Revenue (BIR), and the Mayor’s Permit.

Its organizational structure is designed to fit a sole proprietor business.

The owner stands as the manager who controls all transactions and business

activities. The business location of the proposed project is at Burgos Street

Surigao City beside the Sticker Shop. The affordability of the rent of the building

made the proponents decide to choose this area. Additional personnel will also

be hired in order to manage the said business.

MARKETING FEASIBILITY SUMMARY

The market environment is a marketing term and refers to all of the forces

outside of the market that affects marketing management’s ability to build and

maintain successful relationships with target customers.

The company plans to distribute its products within the city of Surigao. The

company plans to target those who still enjoy sweet treats for snacks. The

competition of this kind of business is stiff. There are business owners that

manufacture similar pie products and they are considered them to be indirect

competitors.

The young coconut pie industry is one of the must-try products in the

country. Many entrepreneurs were encouraged to follow in this kind of business.

Buko pie was originally made in the Philippines and blast freezing technology has

allowed buko pie makers the ability to export the product.

Company sells the product directly to consumers and will also engage in a

B2B business strategy wherein the products will be sold at wholesale prices to

wholesalers and retailers. It will also network with owners of large stores within

each barangay in the city.

Marketing and sales strategy can create a competitive advantage in order

to achieve the objectives of the business. The company will also make use of

radio commercials in promoting their products in the locality. Customer

satisfaction is a priority.

TECHINICAL FEASIBILITY SUMMARY

Buko pie is with just young coconut meat and uses sweetened condensed

milk. This product is one of the all-time favorite pasalubongs or souvenir food

items in the country. Coconut meat is the main ingredient of young coconut pie

which has low cholesterol and sodium, and is considered a good source of

manganese. The sweetness of young coconut pie is sure to give customers great

satisfaction.

The workers should follow the proper business sanitation requirements

which require them to wash their hands upon entering the production area and

wearing the complete gear which includes hairnet, gloves, apron, wearing white

T-shirt, jeans and closed shoes. The clothes used in the production area must be

different from those used when there is a need to go outside.

The company also follows strict protocol in order to maintain the freshness

and increase shelf life of its product. This chapter will show how it is done.

FINANCIAL FEASIBILITY SUMMARY

The financial feasibility of the proposed business may help the researcher

know the trend of the business and determine if it is profitable or not. It shows all

the important accounting documents like the Statement of Financial Condition,

Statement of Operation, Statement of Changes in Equity, Statement of Cash

Flows, Common-size Statements and the Financial Statement Analysis which will

be the basis in measuring the liquidity, profitability and solvency of the business.

SOCIO – ECONOMIC FEASIBILITY SUMMARY

Social economics' may refer broadly to the "use of economics in the study

of society. It is the study of the relationship between society and economic

phenomena. The discipline draws on theories and research methods from

sociology, economics and other social sciences. Socio-economics is a

multidisciplinary approach to studying economic phenomena and the social

implications and effects that result from those phenomena. In many cases,

socioeconomics focus on the social impact of some sort of economic change.

Programs on environmental issues include rationalization on the use of

packaging, advocacy on waste segregation aimed towards an environmentally

friendly social system. The vast potential quantity of our product can be

introduced in the domestic market with the help of an intelligent approach in food

processing. It is created in response to a strong demand from the consumer who

still enjoys sweet treats for snacks. This could help generate employment to

everyone. The government can have benefits of earning revenue through taxes

imposed on the business.

SIGNIFICANCE OF THE STUDY

Exploring new ideas in order to make an already popular product in other

areas in the country marketable in new areas is definitely a challenge. However,

once successful could encourage other business owner to pursue their ventures

armed with new ideas and efficient systems.

Strengthening home - based industries is one of the strategies that our

government is looking at in order to help solve problems of unemployment and

unequal distribution of wealth especially in rural areas of the country.

By conducting this feasibility study, the researchers will find out if certain

management and marketing strategy is feasible. The researchers will also find

out how profitable an initial investment can be.

METHODOLOGY

As the researcher, we gathered information from our respondent by

conducting an actual interview with the owner and investigating the place where

Buko pie is produced. We utilized a descriptive survey at the proposed site at

Burgos Street, Surigao City.

The other sources of data are the internet and government agencies.

SCOPE AND LIMITATION

This study is limited only to exploring the viability of selling and marketing

buko pie in the City of Surigao. The company will only be selling one variety of

the product and will not introduce new variants at this point of the study.

The projected financial statements were made based on arbitrary

assumptions of the researcher and upon careful consideration of secondary data

available to them.

Production levels of both the company and that of indirect competitors is

based only on the answers given by respondents.

CONCLUSION TO THE FEASIBILITY

Upon careful consideration of all aspects that would affect the

establishment of buko pie production, we conclude that the said business is a

profitable venture. We have learned however, that in starting business, we need

to accurately study all aspects of the business and come up with efficient and

cost-effective systems in order to be successful.

DEFINITION OF TERMS

Parameter - is a computation from data values recorded- but it is not actually a

data value recorded from a subject. Example: for a population of test scores, a

parameter would not be an actual score, but perhaps an average computed from

all scores, or a percent computed from all scores.

Proponent - a person who puts forward a proposition or proposal.

Electrolyte - is any substance containing free ions that make the substance

electrically conductive. The most typical electrolyte is an ionic solution, but

molten electrolytes and solid electrolytes are also possible.