OUTLINE FOR FEASIBILITY STUDY

I. EXECUTIVE SUMMARY

1. Market feasibility

2. Management and personnel feasibility

3. Technical feasibility

4. Financial feasibility

5. Socio-economic feasibility

6. Conclusion to feasibility

II. BACKGROUND OF THE STUDY

1. Project proponents
 The proponents of this projects are the following:
Amosco, Jean
Balanay, Jessica
Baloncio, Riza
Busa, Nerissa C.
Labro, Alyka Mae
Parungao, Nessa

2. Proposed name of the business

 The proposed name of the business is Blue Ternate Tea as an Alternative to other
Existing teas in the market.

3. Type of business

4. Location of the business

5. Existing facilities of the business

6. Vision

7. Mission

8. Objectives, and

9. Brief description of the business

CHAPTER I: MARKETING STRATEGY

A. SWOT Analysis

B. Market Demographics

1. Current Market Condition: There should be a discussion or evidence that there is a

demand for your product or service given the current situation in the market

2. Target Market

3. Geographical Location

C. Market Analysis

1. Income/Economic Status: States the level of income earned by the target market

2. Educational Status
 3. Spending Pattern

D. Business Environment

1. Competitive Analysis: Shows the proposed business ‘market share

2. Demand

a) Historical Demand: States the demand situation of your product(s)/service(s);

presents the past 5 or 10 demand of your product(s) indicating your sources/methods of
information.

b) Projected Demand: States the demand projection for 5 to 10 years using

projection methods 8

3. Supply: The supply section is based on the existing related business ‘supply data
including that of direct and indirect competitors.

a) Historical Supply

b) Projected Supply

4. Demand-Supply Analysis: This must show that the demand is greater than the supply
throughput/at most of the study‘s time presentation as this will be one of your reasons
to defend your being able to enter the market.

E. Marketing Strategies

1. Product Image and Description

2. Advertising Strategy

3. Pricing Strategy

4. Proposed Marketing Program

CHAPTER II: Human Resource Management and Legal Study

A. Management of the Project: discusses whether the business will take the form of sole
proprietorship, partnership, corporation or cooperative.

B. Administrative Personnel: Discusses the details about the administrative personnel of the
organization

1. Proposed Number of Administrative Personnel

2. Proposed Organizational Chart: Usually line organization

3. Proposed job requirements: Discusses the job description and duties/responsibilities

of each the admin personnel

4. Availability and Source of Personnel: Discusses whether the personnel will be

outsourced or not; or whether the owners of the business will be the ones to be employed in
the business

C. The Personnel: Who composes the team?

1. Proposed number of personnel (rank and file) 9

2. Proposed job requirements, responsibilities and functions of personnel

D. Management Protocols

1. Proposed Management Style: Depending on the choice of the management,

management style could be autocratic, democratic, etc. Most commonly adopted
management style is participative where they work together to make decisions as a
group and the staff is highly involved.
 2. Proposed Salary Rates: Include provisions for SSS, Phil health and pag-ibig
contributions

3. Proposed General Policies: Set policies on how employees would work inside the
organization and how they would be compensated

3.1. Working hours: May include discussions on rotating shifts (if applicable); number of
days the worker should be present. Discussions in overtime should also be stated

3.2. Compensation: May be daily, weekly, or every 15th, depending on the

management;

3.3. Benefits: Discuss statutory benefits such as SSS, Phil health and Pag-ibig and/or
bonuses

E. Legal Compliance of the Business: Indicate the steps/procedures in securing Business License
and Permits including Registration

F. Assessment of Risk: List of risks that may be encountered during the business operation and
whether it posts high, moderate or low risk.

CHAPTER III: PRODUCTION/TECHNICAL AND ENVIRONMENTAL STUDY

A. Product and Services: Describes the products and services of the business and how they will
be presented to the market.

B. Project Site: Discuss where the business will be located 10

C. Building: Discuss how the building will be designed and how much it would cost. In case the
building will only be rented, the author should also discuss the how it will be carried out.

D. Service Flow: Provide a chart/diagram on the flow of operations or the procedures that will
be followed in serving the customers.

E. Utilities: Discuss the basic utilities that will be needed in the business including their monthly
and annual cost.

F. Equipment: Shows details of the cost of equipment’s needed in the business including their
cost and suppliers

G. Furniture and Fixtures: Shows the furniture and fixtures needed in the business including the
quantity and estimated cost.

H. Waste Disposal: Discusses how proper waste management will be observed and practiced in
the business. Discussion shall be in narrative form and through charts.

CHAPTER IV (FINANCIAL STUDY)

A. Major Financial Assumptions: Contains information as to the major assumptions used in the
study

B. Proposed capital contribution: Shows how capital contribution would be divided among the
members/owners of the business.

C. Total Project Cost: Shows the computation of the total cost of the project

D. Pre-Operating Cash Flow: Shows the computation for the pre-operating cash flow of the
business which can be determined by getting the amount for:

a) Cash flow from operating activities

b) Cash flow from investing activities

c) Cash flow from financing activities

E. Pre-operating Balance Sheet

F. Projected income Statement

 G. Projected Balance Sheet

H. Projected Statement of Cash Flow

I. Statement of Changes in Equity

J. Schedule of Profit Distribution

K. Schedule of Accumulated Depreciation

L. Schedule of Salaries and Wages Distribution

M. Consumption Schedules N. Notes to Financial Statement

a) Salaries and wages

b) Mandatory benefits

c) Depreciation for building

d) Depreciation for equipment

e) Depreciation for furniture and fixtures

f) Utilities expense

g) Revenue and cost of sales

O. Financial Statement Analysis

P. Break-even Analysis

CHAPTER V: SOCIO-ECONOMIC FEASIBILITY

a) Employees/Workers
b) Community
c) Government
d) Other Beneficiaries

APPENDICES:

a) Articles of Partnership
b) Location Map and Plan of the store lay out
c) Qualification of Employees
d) Tables
e) Survey Questionnaires
f) Findings of the Survey
g) Individual resumes

Prepared by:

KEVIN ZAMORA DACULES

College of Business Management and Accountancy
Eastern Samar State University
Instructor