A FEASIBILITY STUDY ON THE ESTABLISHMENT OF SPEIGHTS EMBROIDERY IN

BAYAWAN CITY

A Feasibility Study
Presented to the
Faculty of the college of Business Administration
Negros Oriental State University
For Evaluation and Approval

BY

EMIL JOHN DACULA

JOLLYMAE BAYLON
VERONICA SASTRE
JIMELYN JABAGAT
AIZA SILVA

JANUARY 2021

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 Chapter 1

The Problem and Its Scope

Introduction

Embroidery is an ancient form of needlework that has been used worldwide to

embellish for decorative and communicative purposes. For decades, embroidery has

played a role in decorating and enhancing the beauty of the fabric. During ancestors

age hand embroidery was more popular. In those days, females used to decorate their

wares with different types of hand embroidery. For them, embroidery not only kept them

occupied in their leisure time but it showed their inner talent and creativity. It gives

important going-over available status of the Embroidery producers with best raw

numbers, which means, definition, master suppositions and the most recent

improvements over the around the world. The Report additionally compute the market

size, statistics is collected through authentic sources ,Price, Revenue, Gross Margin and

Market Share, cost structure and development rate. The report considers the income

produced from the deals of This Report and advancements by different application

sections. And Impact COVID-19 and improving Plans for the Industry

Embroidery Market provides detailed analysis of Market Overview, Drivers,

Prospects, Potential Application. Also Embroidery Industry research report includes the

future impact of major drivers and challenges and, support decision makers in

manufacture cost-effective professional decisions. Embroidery is the craft of decorating

fabric or other materials using a needle to apply thread or yarn. Embroidery may also

incorporate other materials such as pearls, beads, quills, and sequins. In modern days,

embroidery is usually seen on caps, hats, coats, blankets, dress shirts, denim, dresses,

stockings, and golf shirts. Embroidery is available with a wide variety of thread or yarn

color., market for Embroidery is expected to grow at a CAGR of roughly over the next

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five years, will reach million USD in 2023, from million USD in 2017, according to a new

study., It moreover discussions about the Embroidery market size of different sections

and their growth aspects along with growth trends, various investors, business leader,

dealers, sellers, Study and media, SWOT analysis. (www.ktvn.com)

In Philippines, embroidery is one of the Filipino traditions wherein women at one

point were lavishly praised and loved. In which they usually make hand embroidery.

Slowly, the market for embroidery started growing vastly. The embroidery tradition in the

Philippines was born in the town of Taal, Batangas during the turn of the century. It has

been a refined art in the society because of its intricate well-embossed appearance. It

belongs to one of the finest arts in the world. The materials used in embroidery are Piña

and other traditional fabrics. The former is a soft, flexible, and durable fine off-white

fabric that is derived from the best mature leaves of the red Spanish variety of pineapple.

During the Spanish times, piña was the most expensive fabric for Barong Tagalog on

very rare and special events. Hand embroidery originally starts with a designer called the

magdidibuho. He is in charge of stamping the designs on the cloth to be embroidered.

After that, the cloth is then passed to the embroidered, whom they call the magbuburda,

who embroiders the cloth in the place where the stamp is put. Another person does the

cut-open portion of the embroidery, called the magkakalado. Embroidery is a very

remarkable Philippine art and now it has been associated with many other native

Philippine products that are being exported to almost all parts of the world. Now we have

embroidered abaca bags and embroidered raffia bags that all come in good quality, one

hundred percent handmade from the trusted Filipino hands. Aside from the weaved

banig bags that are also a new trend today, this additional beautification of embroidering

has made bags, clutches, hats, and other products look even more good and unique.

(www.our7107islands.com). Hand embroidery is exclusive no doubt but it consumes

time. Thus, there evolved a need for machine embroidery. The demand for machine

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embroidery is growing and computerized embroidery has added a facility for quick

delivery by making a process easier.

This business is a good start to open in Bayawan City, since most used

equipment for apparel design are printing machine and manual sewing machine. Aside

from that it is the only existing Embroidery business in the city.

As online markets grow and become increasingly competitive, we will tend to

study the importance of embroidery as a tool to satisfy and retain customers in market or

through e-commerce. By offering embroidered design in online are genuine open doors

for people to make and buy one-of-a-kind structures which will 100% meet their

necessities. Speights Embroidery will give you extra professional touch that cannot be

achieved with printing. By adopting the personalization, the Speights embroidery may

have a greater potential than ever before of being successful in e-commerce. The

internet is an important tool for promoting and selling of product and services.

Name of the Project

The business shall be known as SPEIGHTS Embroidery which means to inspire

people by creating their own personalizes designs. The business will ensure quality

service at customers’ satisfaction as it guarantees personal creativity for the customers.

Location of the Business

SPEIGHTS Embroidery will be located at National Highway besides Palawan

Pawnshop, Poblacion, Bayawan City Negros Oriental. This will serve as the store,

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production and claiming area where distribution and fabrication may happen and will

also serve as storage of all equipment and materials owned by the business. The

proposed location is one of the ideal sites as it is very accessible to target market since it

is situated at the Poblacion area of the City.

Nature of the business

Speights Embroidery is a product provider, type of business that does not only

offer a variety of clothing products online, but also encourages creativity to the

customers when they purchase their preferred apparels in the store or through online

pages. Customers can personalized it with their own designs or they can choose from

predefined graphical art works in online platform.

Mode of Financing

SPEIGHTS Embroidery business start-up capital is TWO MILLION FIVE

HUNDERD FOURTY FIVE THOUSAND AND HUNDRED SIXTY FIVE PESOS (PHP.

2,545,165.00) ONLY which will be needed by the proprietor to operate the business.

This start-up capital will cover the procurement of equipment and materials needed. The

advertisements and promotions, licenses and registration, training of employees, rent

and other pre-operating needs will also be covered by the said amount.

The proponent of the business is Mrs. Carmelita Speights, a Manager of Walmart at

4000 North Ave. Woodbridge VA 22192 Washington D.C, USA. She is a Manager for 20

fruitful years where she saves money that will be used to finance the project.

Objectives of the Study

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This study aims to determine the feasibility of SPEIGHTS Embroidery business in

Bayawan City.

1. Is the propose business feasible in e-commerce point of view?

2. Is the propose business feasible in technical aspect?

3. Is the propose business feasible in management perspective?

4. Is the propose business feasible in financial standpoint?

5. Is the propose business feasible in socio- economic view?

Significance of the Study

The study is significant to the following:

Proponent. This study can identify potential obstacle that may impede its operations

and recognize the amount of funding it will need to get the business up and running.

Negros Oriental State University Bayawan – St. Catalina Campus. This study

creates an impression that the university is capable of producing quality students by

exposing them to extensive research.

Researcher. Through this study, the researchers will acquire new ideas and skills that

can be use in application of their future business.

Future Researcher. This study would help the student researchers to be aware and

knowledgeable of the processes involved in the SPEIGHTS Embroidery business. It

would help them to be a better analyst and it can be helpful as a reference for more

studies in the future.

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Scope and Delimitation of the Study

The propose study is concentrated in knowing the marketing, management,

technical financial and socio-economic aspects of SPEIGHTS EMBROIDERY in the

nine (9) Barangays of Bayawan City namely; Brgy.Villareal, Brgy.Tinago, Brgy. Banga,

Brgy. Suba, Brgy. Maninihon, Bgy. Boyco, Brgy, Ubos ,Brgy Poblacion and Brgy.

Malabugas. The respondents of the study would be teenager, adults and some small

group of people in Bayawan City. However, the other Barangays and neighboring

municipalities that are not mentioned above are considered as our second target market.

This group and individual people were considered as the primary market of the business

taking into consideration their purchasing power. The products will be directly

personalized and can be delivered or claimed in our store. The researchers make a

survey questionnaire in gathering data responses of the respondents. The data

gathering will commence on January 2021.

Definition of Terms

Apparel= these are the product (shirts, caps, pants, shorts, trendy tops and etc.) that

the customers buy and customized.

Embroidery= Refers to technique of decorating garments and apparel.

Store= these refers to production, distributions, claiming area and serve as the physical

store.

E-commerce= refers to online platform for promoting and selling our products.

Services= these refers to the production of the customer orders.

Research Methodology

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 In this part of the study, it covers mostly the research design, research locale,

research respondents, research instrument, data gathering procedure and the statistical

treatment of data.

Research Design
The study used exploratory-survey; exploratory research is not typically

generalizable to the population at large. Social exploratory survey "seeks to find out how

people get along in the setting under question, what meanings they give to their actions,

and what issues concern them. The goal is to answer those questions by gathering data

through the use of online surveys.

Research Locale

The research would be conducted in the nine (9) Barangays in Bayawan City

specifically in Brgy.Villareal, Brgy.Tinago, Brgy. Banga, Brgy. Suba, Brgy. Maninihon,

Brgy. Boyco, Brgy, Ubos, Brgy. Poblacion and Brgy. Malabugas that have internet

access. However, the other Barangays and neighboring municipalities that are not

mentioned above are still welcome to purchase store. The respondents will answer

questions through surveys that would be distributed in every barangay that mentioned

above. The study will be conducted in first semester of the academic year 2020-2021.

Research Respondents

The research respondents of the study are those individuals, preferably the

millennials and Gen x that are situated in 9 barangays in Bayawan City with internet

access that are active in social media and have a capacity to purchase.

Table1. Total Number of Individual

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 Name of Barangays Number of Individuals
Villareal 11,250
Malabugas 5,127
Tinago 3,265
Banga 6,644
Suba 2,510
Maninihon 6,488
Boyco 1,565
Ubos 1,647
Poblacion 3,012
Total 41,508

In order to get the sample size of the study, the researchers used the Slovin’s

Formula with the application of the proportional sampling.

Below, shows the computation is getting the number of respondents.

Slovin’s Formula:

N= N

{1+N (e)2 }

Where:

n= sample size

N= total individual

e= margin of error

n= 41,508

{1+42,508 (0.05)2}

n= 41,508

{1+42,508 (0.0025)}

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n= 41,508

(1+.5.6775)

n= 41,508

6.677

n= 340.097342 or 340 respondents

Research Instrument

In collecting information, researchers prepare and utilize a questionnaire needed

for the study. The questions from numbers one (1) to ten (10) of the questionnaires

contains relating to the management, marketing, financial, socio-economic and technical

aspect of the study and is review and examine by the adviser before disseminating it to

the study respondents. The survey well serve as a basis in gathering and interpreting

the demand, stability and feasibility of the propose business.

Data Gathering Procedure

The researchers will gather data from each barangays in acquiring the total

population of the nine (9) Barangays namely: Poblacion, Tinago, Maninihon, Villareal,

Ubos, Banga, Boyco, Suba and Malabugas as the target.

Statistical Treatment of Data

The researcher employed different tools in the financial analysis of data, payback period,

profit margin, return on assets, return on equity, and return on investment, payback

period, net present value and profitability index.

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Gross Profit Rate

Gross Profit
Gross Profit Rate =
Net Sales

Return on Sales
Operation Income
Return on Sales =
Net Sales
Return on Investment
Net Income
Return on Investment =
Ave. Owners’ Equity
Return on Assets
Net income
Return on Assets =
Ave. Total Assets

Assets Turnover
Net Sales
Assets Turnover =
Ave. Total Assets

Income Statement.

This reports the business’ financial performance over a specific accounting

period. The Income Statement is important in this study because it shows how things

are going and the profitability of the Speights Embroidery. This is a planning and

analysis tool, it shows how decisions affect the business operation. It also is important

to manage the expenses.

Balance Sheet.

This is the statement of the assets, liabilities, and capital of a business in a point

of time. Balance Sheets are crucial in this study because this helps the business know

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its financial standing. It is important that the business identify the trends to make

informed financial decisions.

Cash Flow.

From the name itself it is the cash that flows in and outside of the business. It is

important that the business has a good cash flow to keep it moving. Being able to

generate enough cash is the key in keeping the business healthy.

Survey Questionnaire

This is a survey for a new product which intends to launch in Bayawan City. The

product is an Embroidery apparel service where clients can personalize their prefer

choice of clothes in the comfort of your homes and have it created and delivered to your

location. Of course, other features are involved but this survey is particular to this

feature of the service. Your feedback will be highly appreciated. Thank You!

1. When you think about Embroidery apparel service, do you think of it as something you

need or don’t need?

Definitely need

Probably need

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 Neutral

Probably don’t need

Definitely don’t need

2.  If you are not likely to purchase the product, why not?

Do not need a product like this

Do not want a product like this

Satisfied with competing products currently available

Cannot pay for a product like this

Not willing to pay for a product like this

3. If the product were available today, how likely would you be to buy the product?

Extremely likely

Very likely

Somewhat likely

Not so likely

Not at all likely

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4. What is your first reaction of a product and services?

Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative

5.  Do you dress to stick out and unique, or to fit in?

Unique- I like being different and stick out from everyone else

Unique while still blending it- I like to be different but also fit in

Blend in- I really want to fit in with everyone else

6. On what criteria would you judge the quality of delivery of an Embroidery apparel

service?

Quality of clothing item produced

Speed of delivery

Cost

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 Quality of materials used

Customization options available

Ease of use of the website

Customer service

7. How often do you make purchases online?

Frequently

Once in a while

Seldom

Never had (but would if i see a product that would compel me to)

Never had and never will (online transactions freak me out)

8. What is your gender?

Female

Male

9. What is your age?

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 18 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 to 74

75 or older

10. How much do you spend on clothing a month?

0 - 500

500 – 1,000

1,000 – 1,500

1,500 – 2,000

2000 or more

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