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Feasib Ice Cream Dream PDF
Feasib Ice Cream Dream PDF
By:
September 2014
Accountancy Department
College of Business & Accountancy
Approval Sheet
This feasibility study entitled: “The Establishment of Ice Cream Parlor,
named Ice Cream Dream in Tanauan City, Batangas”, prepared and submitted
by Sheila May Lanto in partial fulfillment of the requirements for the subject of
Member Member
________________________________________________________________
Accepted and approved for partial fulfillment of the requirements for the
subject of Management Consultancy of Bachelor of Science in Accountancy.
Date:__________________
Accountancy Department
College of Business & Accountancy
ACKNOWLEDGEMENT
It is never easy to conduct and come up with this feasibility study. I would
have never completed this without the great help and full support of my family
and friends.
To our professor, Sir Raegan Capuno, for giving his constructive criticisms
and outmost support by sharing knowledge from his profession for the
spiritual and mostly, financial aspects, and especially the strength and inspiration
Above all, to the Creator of All, our Almighty God, who has given the
proponent the knowledge, wisdom and strength to finish this feasibility study;
Thank you.
S.M.L
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DEDICATION
To her professors …
The Proponent
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Executive Summary
Title: The Establishment of an Ice Cream Parlor, named Ice Cream Dream in
determine its feasibility. Because of the love of ice cream by many people, the
parlor. The business is named “Ice Cream Dream”, a business which will
This feasibility study describes the product which the ice cream parlor will
offer to the public. It also determines the different factors on marketing the
product, the technical and management aspects, the potential profitability and the
Marketing Aspect
reliable information used in conducting the study. The 7Ps of marketing was used
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to show the different marketing plans of the business. The target market is stated
Management Aspect
organizational structure was also shown here and even enumerated all the job
Technical Aspect
for the operations of the business. It also showed the cost of the product and the
Financial Aspect
Socio-Economic Aspect
benefited by the project through the additional taxes that will be raised by the
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said authorities. The project in its own little way will help lessen the
unemployment rate by creating opportunities for jobs. The project will also
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Chapter 1
Introduction
establishing a unique business - a business which will gain the target profit from
the target market. In the Philippines, experts have claimed that food sector’s as a
viable business. With this, the proponent comes up with the idea of establishing
refreshment for them. Because of the obvious pleasure of satisfying one’s own
taste buds, almost everyone has a fond memory of a Birthday party, picnic or
romance which included some form of ice cream. An ice cream parlor must
create a unique taste which will entice every customer. This is one of the goals of
comes up to name the business, “Ice Cream Dream”, a business which will
This feasibility study describes the product which the ice cream parlor will
offer to the public. It also determines the different factors on marketing the
product, the technical and management aspects, the potential profitability and the
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Statement of the Problem
The proponent aims to know the market profitability of an ice cream parlor
in Tanauan City, Batangas; the following questions were constructed for the
A. Marketing Aspect
attract customers?
B. Technical Aspect
2. What are the store supplies and equipment necessary for the operation
of the business?
C. Management Aspect
2. What are the qualifications and responsibilities required for the staff
employees?
D. Financial Aspect
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2. What will be the source of financing?
3. How long will the business take to recover its investment? What is the
E. Socio-Economic Aspect
business?
A. Marketable Objectives
B. Technical Objectives
C. Management Objectives
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2. To describe the necessary qualifications and responsibilities required
employees
D. Financial Objectives:
E. Socio-Economic Aspect
the business
This research is a feasibility study on putting an ice cream parlor in the city
establishment of an ice cream parlor that will serve a variety of ice cream flavors.
invest and other factors necessary to take into consideration in the operation of
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Significance of the Study
The proponent believes that the study will have a great contribution to the
following:
To consumers
refreshment.
To community
This will contribute to the communal fund and help to discover new ideas
This will serve as a destination for city’s promotion. This will also help to
provide a new idea and a new source of income in the city of Tanauan.
This study will help their future research as a source of idea and
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Chapter 2
Marketing Aspect
wants of the costumers, finding opportunities regarding it, introduce and market
the product, achieve customer’s loyalty and patronage. It is really one of the most
Product
The primary product of the restaurant will be soft serve ice cream offered
in two flavors: vanilla and chocolate. However, the primary product will be offered
in many variations. First, the menu will offer the traditional ice cream served in a
cone or cup either plain or coated with chocolate. Also, smoothies will be offered
will be the old fashioned sundae with a choice of chocolate and strawberry
syrups with marshmallow, rice crisps and sprinkles toppings. Moreover, the
split will feature three heaping mounds of ice cream, three toppings, banana and
whipped cream, topped with a cherry. In addition, the parlor will offer two sizes
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of ice cream cakes. Soft drinks will be the parlors secondary product. The drink
` Price
The price of every commodity also affects the buying preferences of the
consumer. The quality of the product will not be sacrificed in order to offer with an
affordable price. The proponent has set the price of the product with high
profit. The proponent will use the cost plus pricing strategy in which total
production cost will be determined and then the business will set a mark up.
Prices of existing products in the market are also being looked up so that a fair
Place
The place of the business is one of the most important factors that
be situated in Tanauan Public Market wherein many people pass by. Besides, it
will attract not only residents and students but also a large number of people who
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Promotion
discounts. Posters or tarpaulins will also be placed in our store. The design of the
poster or tarpaulin can able to catch the attention of the customers because of
the information provided as well as its aesthetic. Chosen colors are pleasing to
the eye and will surely boost the interest of the customers. Flyers will also be
distributed as they can convey wide range of possible buyers for it can be
People
Services tend to be produced and consumed at the same moment, and aspects
of the customer experience are altered to meet the 'individual needs' of the
person consuming it. They will be in charge of operating the business and the
one who prepare customer’s orders. They must be appropriately trained, well
motivated and have the right attitude. The people will be given a good
compensation and benefit package so they will also work hard in attaining the
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Process
Process looks at how well your staffs have been trained and how well your
customer facing process work. This includes manner in which customers and
their orders are served and also the amount of waiting time involved in the
Physical evidence
you and your product is presented in the market place. Moreover, the business
will offer a comfortable and neat ambiance and even use additional scents to
make their store extremely fragrant. The windows will be decorated to provide a
SWOT Analysis
Strengths
qualified.
service.
Weaknesses
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Opportunities
The business will be able promote itself as a dessert joint for the nearby
restaurants.
The market is far below saturation level and most of the competitors do
marketing.
Threats
attitudes.
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CHAPTER 3
Management Study
business planning, administration and control. This chapter is about the form of
Probably, the best form of organization for the small ice cream parlor is a
sole proprietorship. Although corporations enjoy limited liability, the lengthy and
with additional start up cash. Also, the entrepreneur in a small business such as
the ice cream parlor would probably want to maintain the authority rather than
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share it with a partner. The business will be named Ice Cream Dream and the
owner is responsible for the planning, organizing and controlling the business.
Organizational Structure
Presented below is the organizational chart for ICE CREAM DREAM Ice
Cream Parlor.
Figure 2
Organizational Chart
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Job Specifications and Descriptions
regulations throughout
the organization.
Monitors the
performance of his
subordinates.
overall ongoing
production operations
including inventory
control, scheduling,
documentation,
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equipment maintenance,
Quality Control/Food
Safety Inspection
production area
at all times
relations by giving
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With good moral character transactions
properly properly
store by accurately
giving of change
at all times
steps in every
customers
relations by giving
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Compensation
will give proper wages to its employees. The minimum wage in Region 4-
Cream Dream needs two full time sales personnel who will assist in providing
customer’s needs and also help in production process. It will also need a cashier
that will be responsible for the sales transactions. They will work 8 hours a day,
from 8am to 5pm with an hour break. They will be receiving a minimum wage of
Table 2
Compensation Schedule
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CHAPTER 4
Technical Study
production activities and their timing. This study requires the efficient way of
period. The output expectation from the production of a plant should correspond
to the demand figure derived from the market study. This production capacity is
achievable under normal working condition taking into account not only the
Business Name
customers. With this, the proponent chooses the name of the business as “Ice
Cream Dream”. The proponent comes up with this name because one of her
dreams includes that of establishing her own business and that she also loves
ice cream. With this name, it emphasizes the product being offered and also
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Office Supplies
The office supplies are needed in the operation of the business especially
operation of the business occurs. These items are commonly found in every
establishment.
TOTAL P1107
Raw Materials
These are the direct and indirect materials or ingredients needed for the
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Direct Materials
These are items which are directly attributable to the main products.
mix
mix
dip
mallows
crispies
cream
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Cherry P200/12pc 1 everyday P6000 P72000
Total P339175.20
Indirect materials
These materials are not part of the main product but are the same
pack
pack
pack
TOTAL P18795
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Machinery and Equipment
These include all the tangible assets with estimated useful life beyond one
year. The following are the machineries and equipment held for business
operations.
TOTAL P74790
Source: olx.com
These include the furniture and fixtures that will be used in the store to
TOTAL P22000
Source: olx.com
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Utilities Requirements
Electricity
Dream will greatly need this for its proper and smooth operations and for the
business to carry out its operations. This will also set the atmosphere of the
restaurant for its proper lighting and ambiance. The store electricity will be
Water Supply
order for them to continuously do their job and tasks. A good water supply can
enable them to perform tasks such as cleansing the raw materials and kitchen
utensils, machines, and equipment, and the overall store to ensure safety of the
Telecommunications
a clear and proper negotiation with suppliers and especially with the customers
concerns that can might help and contribute to the business growth, development
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Chapter 5
Financial Aspect
Financial Aspect includes the quantitative monetary unit of all the aspect
of the business enterprise. This chapter includes the cost of the business
This chapter refers to the efficient and effective utilization of capital to attain the
financial resources and minimization of risks and cost in starting the business.
Major Assumptions
sole proprietor.
follows:
Table 12
INFLATION TABLE
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RATE 4% 3.5% 5.5%
Source: http://www.tradingeconomics.com/philippines/inflation-cpi
financial statements.
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13. The company
is VAT registered and shall base on 12% value added tax rule and
15. The supplier of ice cream is giving 25% credit of the number of
units ordered. Upon the next order the credit will be paid.
16. All expenses are assumed to be paid at the end of the year; no
17. It is assumed that the ending inventory will be 0 at the end of the
fiscal year and the left over is allocated spoilage and wastages.
18. Selling price will be fixed at ____ and the cost of the product is
19. Repair and Maintenance Expense is ______ for the first year of
21. It is assumed that the expense for Employee benefits is 30% of the
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Financial Statements
analyst must somehow have standards with which may be compared to the
financial statements and the company’s own financial statements for the period.
The primary source of information about the firm’s financial performance and
Income Statement
The Income Statement helps to determine the profit that the business has
earned with its activities during one financial year. If revenues are greater than
the expenses, the business has earned a profit. Otherwise the business has
experienced losses.
the asset and liability situation of the company at the end of financial year.
Balance sheet and Income Statement are not only very helpful but a decisive
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Statement of Cash Flows
The statement provides data about the available cash the firm may utilize in a
specific period.
income and loss over a given time period. It indicates the net assets of the firm or
the residual interest after deducting liabilities from the firm’s asset. The changes
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Chapter 6
The socio-economic impact of this study will clearly state its relevance to
the external aspect of the business. The vision and mission statements as well
chapter.
Vision
Ice Cream Dream envisions itself to be the leading ice cream parlor
its customers.
Mission
order to have the customer return again for another satisfying, delicious
treat; while at the same time earning a reasonable return on the initial
investment
To take care of its employees and will be paid according to their skills and
abilities
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To be open to all in-store suggestions from customers and test them for
results
Every business establishment will be of great help for the growth and
development of the Philippine economy. These will only be possible if every firm
government by means of paying right taxes. Through this, the government can
be able to perform its functions well including continuous support and assistance
to the business industry, providing projects for the community such as building
infrastructures, public schools and hospitals, strengthening arm forces for the
security and protection of the countrymen and other indispensable projects that
Employment Generation
especially to those people who have great passion in food preparation. Every
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society wants all its qualified members to be gainfully employed. When
individuals are employed they are able to raise their children support them
through school, provide them with decent homes, acquire medical services
income taxes. Ice Cream Dream will help to lessen rate of unemployment.
Environmental Responsibility
will be implemented by having proper waste disposal. Trash cans will be put
inside the store so garbages can be properly disposed. Ice Cream Dream will
also be responsible in the environment through considering all things that may
affect it.
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CURRICULUM VITAE
Personal Background
Age : 19
Sex : Female
Citizenship : Filipino
Educational Background
Tertiary
BS Accountancy
(S.Y. 2011-2015)
Secondary
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(S.Y. 2007-2011)
Primary
(S. Y. 2001-2007)
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