ESTABLISHING J3 CAGE GARNEY TEA PRODUCTION IN BARANGAY 9,

MAMBURAO, OCCIDENTAL MINDORO

Jeffrey D. Laog
Genevieve B. Gentica
Christian P. Narsoles
Eleonor C. Batol
Jessa May D. De Real
John Mark H. Gitana
Arlyn T. Luminguez
Rogelio V. Tamares
Justine Ann D. Navarro
Bachelor of Science in Business Administration Major in Operations Management

Lady Bird C. Regudo, MBA

Instructor III
Adviser

EXECUTIVE SUMMARY
The study was conducted to determine the feasibility and viability of
establishing J3 CAGE Garney Tea Production in Barangay 9, Mamburao, Occidental
Mindoro. The proponents conducted a survey among 392 respondents and 343 or
87.5% of the respondents are willing to patronize the product. It can state that the
business is feasible in terms of demand.
J3 CAGE Garney Tea Production will be situated nearby a drug store,
supermarket, school, church and different establishments and accessible to
transportation. It will be located along National Road, Barangay 9, Mamburao,
Occidental Mindoro, where the customers can easily see the store that gives the
business a competitive edge towards the competitors. The target markets of the
proposed business are the male and female ages 20-64 years old and above living in
Mamburao, Occidental Mindoro. From the survey gathered the majority of the
customers came from the senior citizen.
The business will be organized in the form of partnership for it is easy to form
and organize. The partnership is composed of 9 partners that will contribute the
capital requirements with different percentage and will need one delivery boy that will
deliver the product to the customer that order in wholesale. The total capital
requirement of the business is Php 225,609.13. Mr. Laog and Ms. Gentica will equally
contribute Php 33,841.37, Mr. Narsoles, Ms. Batol, Mr. Gitana and Ms. De Real will
equally contribute Php 29,329.19, and Ms. Luminguez, Mr. Tamares and Ms. Navarro
will equally contribute Php 13,536.55. The proponents will source out the needed
capital requirement from their personal and family savings. It has a Return on
Investment of 84% which means that the capital will be reclaim before one year of
operation. The findings of the study led the proponents to conclude that establishing
J3 CAGE Garney Tea Production in Barangay 9, Mamburao Occidental Mindoro is
feasible and viable.

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INTRODUCTION

Garney Tea is a combination of garlic powder and honey sugar which

undergoes a series of steps to complete the whole process. Garlic (allium sativum) is
one of the earliest documented plants used for treating diseases and has been
recognized as one of the most effective traditional remedies since the ancient times. In
most places in the world, it is regarded as an aphrodisiac. Garlic is a strongly aromatic
bulb crop that has been cultivated for thousands of years. Today garlic is grown in
temperate and tropical regions all over the world. Garlic plants grow about 60 cm or
2ft. tall, the bulb is covered with membranous skin and encloses up to 20 edible
cloves.
Garlic contains over 80 nutrients such as manganese, vitamin B6, vitamin C,
copper, selenium, phosphorus, vitamin B1, etc. It can help people who suffer from
high blood pressure and heart disease, boosting the immune system, anti-infection,
powerful cancer fighter, detoxification, inflammation, earache, cough and sore throat.
Honey is a sweet food made by bees foraging nectar from flowers. It has been
valued as a natural sweetener long before sugar became widely available in the 16th
century. Honey is produced through the mixture of the nectar and enzyme found in
the bee’s mouth. The bee will drop it to the so called “honey womb” as it goes back
into its hive. The 60,000 bees in a beehive may collectively travel as much as 55, 000
miles and visit more than two million flowers to gather enough nectar just to make a
pound of honey.
Honey provides a lot of health benefits. It helps in preventing cancer and heart
disease, reduces ulcer and other gastrointestinal disorders, increase athletic
performance, helps in preventing cough and throat irritation, regulates blood sugar
and maintain a beautiful skin.
The proposed business name “J3 CAGE Garney Tea Production” is a
combination of the first letters of the proponent’s name. It will be located at Brgy. 9,
Mamburao, Occidental Mindoro. Mamburao is the capital of Occidental Mindoro, the
proponents chose this location for the business to be known by the public and Brgy. 9
have the biggest population in Mamburao. It will be situated nearby a drug store,
supermarket, church and different establishments accessible to transportation which
gives an advantage to our business.
OBJECTIVES OF THE STUDY

General Objective

The general objective of the study is to determine the feasibility and viability
of establishing J3 CAGE Garney Tea Production in Mamburao, Occidental Mindoro
area and to determine the satisfaction from the product that the proponents will offer
to the customers.

Specific Objective

Marketing

1. To win customer’s attention through effective strategies

2. To gain profit while operating the business.

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 3. To provide an alternative tea to its target market.
Technical

1. To identify the steps needed in making tea.

2. To determine the tools and equipment needed to produce the product.
3. To find the right facilities, location and lay-out of the business.
4. To classify the schedule of employee and to identify the production capacity.
5. To know the exact materials to be used and the availability of supply for the
product.

Organization and Management

1. To identify the form of business and the percentage of ownership of the

proponents.
2. To determine the needed personnel of the proposed project.
3. To enumerate the job requirements and responsibilities of each personnel.
4. To list down the salaries and benefits of the employee.

Financial

1. To identify the source of capital.

2. To use the capital properly according to the needs in establishing the business.
3. To prepare the projected financial statement of the proposed project.
4. To determine the proposed business’ profitability.

MARKET STUDY

Market Description
In this study, the proponents chose Mamburao to be the location of their
business due to some reasons; Mamburao is the capital of Occidental Mindoro and it
is consists of 15 barangays. It is second class municipality in the province of
Occidental Mindoro, Philippines. The municipality of Mamburao lies on the level
area of the coastal bank of Mamburao River and extends far beyond into inferior at
the foot of the mountains.

According to the PSA, there are 42,975 residents of Mamburao, Occidental

Mindoro as of 2015. The proposed business targets are 19,158 of male and female
ages 20-64 above. On year 2017 the business targets are 20,163 of the male and
female ages 20-64 above. This target market includes senior citizen, traditional and
non-traditional tea drinkers and the health-conscious people. They were chosen
believing that they need to take anti-oxidant to balance their unhealthy diet
considering that Garney tea is a dietary source of important vitamins and minerals.
Also, based on researcher’s survey, age bracket of 20 to 64 years old are the most
willing to purchase the product.

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Marketing Strategies

Product Strategies

To prepare Garney tea, just add hot water or tap water. The Garney tea is an
excellent energy drink. The Garney tea will provide a unique and distinctive flavoured
tea. The packaging process will basically use box and labelling wherein you can see
the brand name, address, and contact number. The minimum shelf life of Garney tea
is 1 year if stored in cool and dried place. The tea is loaded with antioxidant that helps
to balance the unhealthy diet of many people that suffer from obesity. Garney tea is
beneficial for people of all ages.

Pricing Strategies

The proponents will use the pricing strategy, offering an affordable price of
Php 4.00 per piece. To get the price per piece the cost of production will be divided
by the number of finished goods. The daily cost of production is Php 3,142.13 and the
number of finished goods is 1,500 pieces daily so when we divided 3,142.13 by 1,500
we will get the quotient of Php 2.09 which is the production price of Garney tea per
piece.
Since the retailer price per piece is Php 4.00, the business will have a Php 1.91
or 47.75% mark up and from the wholesale price per box which is Php 3.00 the
business will have PhP .91 or 30.33% mark up.

Promotional Strategies
Before the business operation starts, tarpaulin will be posted at the entrance of
San Jose St. Brgy.9, Mamburao, Occidental Mindoro, informing prospective
customers about the availability of the product. An advertisement on local radio
station will be announced.

Distribution Strategies
The distribution of Garney tea will be retail and wholesale. Customers will
visit the store which is located at Brgy. 9 in order to buy the product. The store will be
open daily at 7:00 o’clock in the morning until 7:00 o’clock in the evening. The
proponents will use fliers to enclose all the details with contact numbers. Through
texting they can buy or order the product. If the customer wants to deliver the product
to their home they will have an additional charge of Php 20.00 for 9 boxes and below
but if they order more than 10 boxes of the product the proponents will offer a free
delivery for them. The delivery is within Mamburao proper only. The proponents will
use the FIFO method or the first in first out method to avoid probable loss.

TECHNICAL STUDY

Product Description
Garlic is a powerful immune-booster that helps the body fight infection. It is
effective against nasty bacterial, viral and fungal infections. Garlic is low in calories
and high in nutrients. A study found out that a daily dose of garlic reduces possibility
of having colds by 63%.
Honey is rich in antioxidants, along with enzyme and minerals including iron,
zinc, potassium, calcium, phosphorus, magnesium and selenium. The natural vitamins

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and minerals in honey help lower the cholesterol level. It is rich in taste and has a high
number of nutritional benefits. It has a healthy glycemic index that aids in better
digestion. It helps to fuel the body and mind while making it easier to maintain a
healthy weight. Its antibacterial and antioxidant properties make it a great remedy for
the immune system.

Both garlic and honey has antibacterial, anti-viral and anti-fungal properties,
that makes the two a nutritious combination that helps prevent sore throat, colds and
flu. Garlic and honey are well-known as a traditional medicine that is able to boost
your metabolism and help you lose weight faster. The Garney tea is an excellent
antioxidant. The Garney tea will provide a healthy and distinctive flavoured tea.

The packaging process will basically use box and labelling wherein you can
see the brand name, address, and contact number. The minimum shelf life of Garney
tea is 1 year if stored in cool and dried place. Garney tea is beneficial for people of all
ages.

Production Process
To ensure the smooth and continuous operation of the business, the production
will take several steps for its process. For the primary ingredients of this product, the
proponents will be using machineries and equipment to make the production easier
and faster. The Garlic will be dried first before the start of the operation. In the
preparation of the product, the following are procedures in making Garney tea; (1)
Process of making Garlic powder; preparation of raw materials, tools and equipment,
cleaning, peeling and slicing, heating, grinding, filtering and storing. (2) Process of
making Honey powder; preparation of raw materials, tools and equipment, cleaning,
boiling, cooling, grinding, filtering and storing . (3) Process of making Garney tea;
preparation of raw materials and tools, cleaning, mixing, packaging, and it becomes
finished product.

Process of making Garlic Powder

Start

Preparation of raw materials, tools and equipment (20

minutes)

Peeling and Slicing (30 minutes)

Toasting (2 hours)

Grinding (30 minutes)

Filtering (5 minutes)

Storing (5 minutes)

End

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Process of making Honey Powder

Start

Preparation of raw materials, tools and equipment (20

minutes)

Boiling (5 minutes)

Cooling (10 minutes)

Grinding (30 minutes)

Filtering (5 minutes)

Storing (5 minutes)

End

Process of making Garney Tea

Start

Preparation of raw materials and tools (20 minutes)

Mixing (10 minutes)

Packaging & Stitching (2 hours)

Finished Product

ORGANIZATION AND MANAGEMENT STUDY

Form of Ownership
Partnership is the form of business organization of the proponents for the
proposed business. The proponents choose this kind of business because it is a
voluntary association of two or more persons who have agreed to contribute money,
property, and industry; dividing the profit among themselves.
Each person will agree to contribute money, property and industry as fund
with intention of dividing the profit among themselves according to the capital that
they contribute in the proposed business. They will also contribute skills, knowledge

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 in position that they have and to share in the decision making in managing correctly
the proposed business.

Organizational Structure
Manager

Production Supervisor Asst. Manager Financial Manager

Cashier

Delivery Worker 1 Worker 2 Worker 3

Boy

FINANCIAL STUDY

Financial Assumptions

The following assumptions are considered in preparing projected financial statement:

1. Sales are determined by multiplying the price and quantity. Sales will increase 10%
annually. Sales Discount will be 20% of sales yearly.
2. Operating expenses will increase 5% yearly except depreciation.
3. Depreciation will be computed based on its respective estimated
useful life.
4. Raw Materials inventory ending is 8% of the total raw materials available.
5. Goods in Process inventory ending is 8% of the cost of goods put into process.
6. Finished Goods inventory ending is 8% of the total goods available for sale.
7. Purchases are expected to increase by 6% yearly.

Projected financial Statement

1. Projected Income Statement

A financial statement that measures a company’s financial performance over a
specific accounting period, financial performance is assessed by giving a summary of
how a business incurred its revenues and expenses through both operating and non-
operating activities. It also shows that net profit or loss incurred over a specific
accounting period, typically over a fiscal quarter or year and also known as the “profit
or loss statement” or “statement or revenue and expenses”. See Appendix “E”, the
Projected Income Statement of J3 CAGE Garney Tea Production. For the first year of
operation the net income of the business is Php 202,736.24, for the second year it
decreased to Php 131,911.65 due to the increase of purchases and other expenses, but
for the third year the income was recovered and increased to Php 210,043.77 which

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create a good impact for the company, for the fourth year it also increased to
Php 318,478.27 and on the fifth year it also increased to Php 443,728.91. The
proponents can state that the business is very feasible because of the increasing
amount of income for years.

2. Projected Statement of Cash Flow

The cash flow statement reports the cash used and generated during the time
interval. See Appendix “F”, the Projected Statement of Cash Flow of J3 CAGE
Garney Tea Production for the first year of operation the ending cash balance of the
business is Php 345,575.77, on the second year it increased to Php 490,513.65 on the
third year it also increased to Php 713,494.62, it also increased on the fourth year
amounted to Php 1,044,815.72 and for the fifth year it increased also to Php
1,501,287.43. The proponents can say that there is a substantial amount of cash during
the several years of operation that gives a better profit for the business.

3. Projected Statement of Financial Position

It is the position that summarizes company assets, liabilities and shareholders’
equity at a specific point in time. See Appendix “G”, the Projected Statement of
Financial Position of J3 CAGE Garney Tea Production. For the first year of operation
the total assets and partner’s equity is Php 428,345.37, on the second year it increased
to Php 560,257.02 on the third year it also increased to Php 770,300.80 it also
increased on the fourth year amounted to Php 1,088,779.07 and for the fifth year it
increased to Php 1,532,507.98.

CONCLUSIONS AND RECOMMENDATIONS

Summary of Findings
The establishment of J3 CAGE Garney tea Production in Mamburao,
Occidental Mindoro will serve as means of income thus; it gives profit to the
proponents as well as it helps the community/society to reduce the unemployed
individual.
They found out that J3 CAGE Garney Tea Production requires minimal capitalization
and the production process is easy and simple. Aside from earning money, the venture
will also serve as a good way of improving one’s talent in terms of art.
The business will take the form of partnership. Each proponent contributes
money to start the business.
Based on the survey conducted by the proponents, they got 87.5% as their market
acceptability, meaning to say most of the people will patronize the product. It is also
evident in the study that the demand of Garney Tea increases each year which is
directly proportional to the supply.
The needed capital of the business will be amounted to Php 225,609.13 and
will be passed to accounting for the compensation of percentage of their ownership.

Conclusion
The proponents of the study conclude that the production of Garney tea in
Mamburao, Occidental Mindoro is feasible and viable. It can be said that the stability
of the business must be maintained upon establishment of the projects. The
proponents can also conclude establishing this kind of business will benefit not only
the proponents but also the community which has a large number of people suffered

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from high blood and heart disease, infections, cancer, detoxification, inflammation,
earache, cough and sore throat.
The proposed business is indeed profitable. There is no similar product like
Garney tea but there are other tea variants in the town that compete with each other.
Garney tea has a competitive edge towards others for it will be the first to offer this
kind of product and at the same time ensuring the health of the costumer.

Recommendation
The proponents recommend the establishment of the proposed business J3
CAGE Garney Tea Production in Mamburao, Occidental Mindoro because there are
no other producers of tea here in Mamburao and store that sells tea made up of Garlic
and Honey. The proponents also recommend of having different flavours of tea such
as apple, orange and lemon so the costumer will have different choices.
The proponents also recommend to supply the retail stores in Sta. Cruz, Paluan and
Abra De Ilog, Occidental Mindoro in the future enable to increase the target market
and increase the amount of sales to gain a higher profit.

References:

Bautista J. C. R., Cajayon L. B., Garingo I. C., & Ramos D. C., (2015). “LAICA
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Leech, Joey, (2010). “Authority Nutrition”. Retrieved October 24, 2016, from
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Nichols, Helen, (2010). “21 Science – Backed Health Benefits of Honey”. Retrieved
October 24, 2016, from www.well-beingsecrets.com

Nordqvist, Joseph, (2013, November 16). “Honey: Health Benefits and Uses in
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