EXECUTIVE SUMMARY

Title: The Manufacturing and Retailing of Fried Mashed Potato Balls with Meat and
Mozzarella Cheese at Jhocson Street, Sampaloc, Manila

Proponents: Kristine Jaena B. Bautista

Risalyn L. Biong

Kristine Abigail C. Immaculata

Chelsea Marie J. Marquez

School: Centro Escolar University- Manila

Adviser: Dr. Rosemarie I. So

Statement of the Problem

This feasibility study sought answers to determine the viability of manufacturing

and retailing Fried Mashed Potato Balls with Meat and Mozzarella Cheese in Centro
Escolar University at Jhocson Street, Sampaloc, Manila.

Specifically, this study sought answers to the following questions pertaining to

the fundamental plans of business operations:

The Management Plan

1. What are the pre-operating activities to be executed before starting up the

business? 2. How many employees will be hired by the business?

3. What are the qualifications, duties, and responsibilities to be considered in

hiring the employees?

4. How much will be the proposed salaries, wages, bonuses, allowances, and
other fringe benefits to be given for the hired employees?

The Technical Plan

1. Where will the business be located?

2. What are the raw materials needed for the production?

 3. What are the utilities and supplies needed by the business?

4. What are the machines and equipment needed by the business?

5. What are the necessary processes to manufacture the product?

6. How many units can each worker produce?

7. In what way will the business dispose its wastes?

The Marketing Plan

1. Who are the prospective buyers of this product?

2. How much will be the selling price assigned to the product?

3. What are the pricing strategies to be used?

4. What is the supply and demand condition of the product?

5. What are the channels of the distribution?

6. What are the promotional tools to be used by the business?

The Financial Plan

1. What are the sources of capital?

2. How can the expenses be decreased?

3. How long does it take for the business to recover from its investment?

The Socioeconomic Plan

1. What are the benefits derived from the business?

2. Who will benefit from the business?

3. In what way will the economy benefit from the proposed business?
Summary of Findings

The summary of findings provides the answers to each and every question raised
in the Statement of the Problem. This will be presented per plan. The summary of
findings is discussed below.

The Management Plan

1. The pre-operating activities of the proposed business starting from the first
activity up to the last are the conduct of feasibility study, contribution of capital,
registration of business, lease of space, purchase of equipment and raw materials,
setting up the business store, hiring and training of employees, promotional campaign,
and lastly the start of normal business operations.

2. One of the partners will be assigned as a general manager. Two (2) production
workers and a sales agent will be hired before the start of normal business operations.

3. The general manager is in-charge of the firm’s overall practice, management,

and day-to-day operations. He is also responsible for the operation efficiency and
decision-making. To be qualified as a general manager, he must be a graduate or
degree holder of any business- related courses and must be equipped with
communication, management and accounting skills. He must also be knowledgeable in
preparing and analysing financial statements and proficient in computer software and
applications particularly in Microsoft Excel. He is the one in charge for the report and
maintaining payroll information by collecting, calculating and entering data. He must
also possess the moral qualifications. He can be a male or a female but must be 18 to
45 years old. The two production workers are responsible for the production and retail of
the food product. They must practice quality control and proper sanitation in the working
environment. The two production workers may be male or female, must be 18 to 40
years old, and must have a proven knowledge and experience in the field of cooking,
including proper sanitation. The sales agent collects payment and gives receipts. He is
in charge of getting orders from the customers and the packaging. He can be a male or
female but must be 18 years old but not more than 40 yrs old, must be honest, have
good communication skills and pleasing personality.
 4. The general manager has the highest salary which amounts to ₱15,000.00
because the position requires more tasks and responsibilities compared to the
production workers. The two production workers will have a monthly wage of
₱12,288.00 which is based on the latest minimum wage requirement of ₱512.00 as of
October 2017.

The Technical Plan

1. The proposed business will operate at 556 M. F Jhocson Street, Sampaloc,

Manila, located beside National University College of Dentistry.

2. The raw materials needed in manufacturing the fried mashed potato balls with
meat and mozzarella cheese are classified into direct and indirect materials. The direct
materials needed are potatoes, chicken meat, beef meat, pork meat, mozzarella
cheese, cheddar cheese, eggs, unseasoned bread crumbs, seasoned bread crumbs,
cooking oil, butter, iodized salt, garlic, seasonings, and sauce (cream cheese flavor).
The indirect materials to be used are disposable sticks and paper cups.

3. The utilities needed by the proposed business are electricity to be provided by

Meralco and water to be supplied by Maynilad. The office supplies needed by the
business are bond papers, ball pens, and stapler with staple wires. As for production
supplies, the business needs hairnet, disposable gloves, apron, kitchen masks, and
tissue.

4. The production machineries and equipment needed by the proposed business

are the deep fryer, refrigerator, electric stove, stainless steel cooking pan, stainless
steel cooking pot, stainless steel food pan, food container, spoon and fork, peeler, knife,
stainless cooking utensils, chopping board, and food store stand. The office equipment
needed are office table, office chair, and electric fan.

5. The manufacturing process of the food product include preparation, peeling

and cutting, boiling, pounding, cooking the meat, filling in the meat and mozzarella
cheese, setting up the breading station, dipping, frying, quality control procedure, and
packaging. The ingredients and materials needed for production must be prepared first
by the production workers. After that, the potatoes are peeled and cut into pieces. The
potatoes are then placed in a large pot with enough water to cover. It must be boiled for
15 to 20 minutes. After boiling, the potatoes are strained and are ready for pounding.
The potatoes are mashed until no lumps remain. The mashed potatoes are then added
with butter and seasonings. After such, the ground meat is cooked and mixed with
seasonings. The mashed potatoes are scooped evenly, flattened into a disk, filled with
the cooked meat and mozzarella cheese, and shaped into balls. After that, the breading
station must be set up. The mashed potato balls are then dipped into the whisked eggs
and rolled into the breadcrumbs. This should be done twice for better coating. The balls
are then deep fried until golden brown, checked for quality control, and served.

6. Each of the production workers are expected to produce a total of 125 units
per day. Every year, the daily production capacity increases by 3%. The annual
production capacity for is 78,000 units for the first year, 80,496 units for the second
year, 82,992 units for the third year, 85,488 units for the fourth year, and 87,984 units
for the fifth year of business operation.

7. Wastes will be segregated into separate trash bags labelled as biodegradable

and non-biodegradable which shall be disposed properly. It will be picked up by the
waste management personnel assigned in Manila City.

The Marketing Plan

1. The prospective buyers of this business are the residents in Barangay 556
Sampaloc, Manila.

2. The selling price of the proposed product is ₱25.00 per unit which comprises
10.61 unit cost and 135.63% mark-up.

3. In setting the price, the proponents used the cost-plus pricing strategy. In
setting the product’s selling price, the proponents considered the total cost per unit and
a mark-up which covers the other expenses and the desired profit.

4. By conducting a survey in Centro Escolar University- Manila and an interview

with one of its expected competitors, the proponents were able to determine the
demand and supply condition of the product. The data collected were summarized and
computed resulting to an annual demand in units of 42, 952 and an annual supply in
units of 1,680. The computation of the demand and supply quantum of the proposed
product shows that there is still an unsatisfied demand of 41, 272 units of fried mashed
potato balls with meat and mozzarella cheese. Therefore, it is safe to conclude that the
business is feasible.

5. Direct distribution will be applied by the business in which the production

workers and the sales agent will manufacture the product and sell it directly to the
consumers.

6. The proponents decided to promote the product through social media,

particularly in facebook, which is one the most common promotional techniques
nowadays. The proponents will also make use of flyers and word of mouth to promote
the product.

The Financial Plan

1. The business will be financed internally by the partners since the business
organization is a partnership. Each of the partners will contribute an equal amount of
₱250,000 to come up with the initial capital of ₱1,000,000.

2. The expenses can be decreased by ensuring quality control in the use of

resources in order to minimize wastages and avoid unnecessary expenses. The
business will also be transacting with suppliers which can provide affordable products
without its quality being compromised.

3. Based on the computation of the payback period, it will take 248 days for the
proposed business to recover its investment of ₱1,000,000.

The Socioeconomic Plan

1. Through responsible discharge of its social responsibilities, the immediate

community of the business will be benefited. The business is also expected to
contribute to the economy through payment of taxes, compliance with laws and
providing additional jobs.
 2. The proposed business will be able to provide the society a healthy food which
is not only delicious but is also packed with various nutrients that the body needs. Its
immediate community will also benefit from the outreach activities to be organized by
the business. The business is expected to create job opportunities which will decrease
the unemployment rate by a bit. Moreover, it will help in keeping the environment clean
through proper waste disposal and in preserving the natural resources.

3. The proposed business will benefit the economy through payment of taxes,
compliance with laws and providing additional jobs. Also, the business will be able to
compete with other businesses in the market which will help the consumers choose
between variety of products in terms of quality and affordability. The social services to
be provided by the business will also contribute for the betterment of the economy.
Aside from paying taxes, the business will also pay SSS, PhilHealth and PagIBIG
contributions. The total amount of projected taxes and contributions is ₱219,740.96 for
the first year, ₱244,969.04 for the second year, ₱270,790.87for the third year,
₱301,295.33 for the fourth year, and ₱329,221.32.41 for the fifth year of business
operation.