JACE COOKIE FACTORY

A Feasibility Study

Presented to the College of Business Education

Asian Development Foundation College

Tacloban City

In Partial Fulfillment

Of the Requirements in

Management 10A

(Feasibility Study and Entrepreneurial Management)

Submitted to:

LETECIA A. BARTOLOME, MBA

Adviser

Submitted by:

ABOGADO, ROLYN E.

CAJEPE, JUDY ANN L.

ESQUIERDO, MARMEL C.

JOMOC, RONNEL T.

October 2017
 APPROVAL SHEET

In partial fulfillment of the requirements for the course Management 10A

(Feasibility Study and Entrepreneurial Management, this feasibility study entitled JACE
COOKIE FACTORY has been ready beforehand and submitted by ROLYN
ABOGADO, JUDY ANN CAJEPE, MARMEL ESQUIERDO and RONNEL
JOMOC, who by virtue of this act are hereby recommended for presentation.

MRS. LETECIA A. BARTOLOME, MBA

Adviser

Approved by the Committee on Oral Examination with the final grade of .

COMMITTEE ON ORAL EXAMINATION

MR. FRANCIS ADRIAN P. POLIDO

Chairman

MRS. MARGIE C. MABITAD, CPA MRS. LETECIA A. BARTOLOME, MBA

Member Member

Accepted in partial fulfillment of the requirements for the degree of Bachelor of

Science in Business Administration.

LETECIA A. BARTOLOME, MBA

Chairman, Business Education Department

 ACKNOWLEDGMENT

The proponents express their heartfelt gratitude to the following that extended
their time and efforts to support and encourage them in the preparation and completion of
this study.
First and foremost, to the ALMIGHTY GOD who helped the proponents in all
endeavors throughout the study,
To MRS. LETECIA A. BARTOLOME, MBA, their instructor, for her patience
and inspirational guidance towards the accomplishment of this paper,
To the distinguished Committee on Oral Examination chaired by MR. FRANCIS
ADRIAN P. POLIDO; members, MRS. MARGIE C. MABITAD, CPA and MRS.
LETECIA A. BARTOLOME, MBA, for their expert handling of the critiquing of this
paper. The gratitude will always be indelible.
To the BUSINESS PROPRIETORS for their cooperation during the interview
that aided in the completion of the study.
And last but not the least, to their PARENTS, whose love, encouragement,
unflinching prayers, financial and moral support helped them very much throughout their
studies.

ROLYN ABOGADO
JUDY ANN CAJEPE
MARMEL ESQUIERDO
RONNEL JOMOC
 TABLE OF CONTENTS

Title Page

Approval Sheet

Acknowledgment

List of Tables .……………………………………………………………………………. i

List of Figures .………………………………………………………………………....... ii

Introduction ……………………………………………………………………………...

iii

EXECUTIVE SUMMARY

Business Name ………………………………………………………………………....

iv

Nature of Business ……………………………………………………………………..

iv

Location …………………………………………………………………………….…..

iv

Form of Business …………………………………………………………………….…

iv

Target Market ……………………………………………………………………….….. v

Capitalization ……………………………………………………………………….…...

Proponents …………………………………………………………………………..….. v

Brief Description of the Business …………………………………………………..…...

v
HIGHLIGHTS OF THE STUDY

Market Aspect ………………………………………………………….………………. vi

Technical Aspect ………………………………………………………...………………

vi

Management Aspect …………………………………………………….……….…..…. vi

Financial Aspect ………………………………………………………….…….………. vi

Socio-Economic Aspect …………………………………………………..……………. vii

MARKET ASPECT

Product Description ……………………………………………………………………. 1

Nutrition Facts …………………………………………………………………. 3

Market Description

Target Market ………………………………………………………………….... 7

Market Coverage ………………………………………………………………… 7

Demand Analysis

Historical Total Population ……………………………………………………… 8

Projected Demand ……………………………………………………………….. 9

Supply

Historical Supply

Elena’s Bakeshop ………………………………………………………. 10

Manolette Bakeshop…………………………………………………….. 11

Quality Bread …...……………………………………………………….

12
 Consolidated Historical Supply ……………………………………….………..

13

Projected Supply ………………………………………………………………..

14

Demand and Supply Gap Analysis ……………………………………………………..

15

Projected Deficit, Volume and Market Share ………………………………………….. 16

Marketing Program

Product …………………………………………………………………………..

17

Price ……………………………………………………………………………..

18

Promotion ………………………………………………………………………. 19

Channel of Distribution ………………………………………….………………

20

TECHNICAL ASPECT

Business Size, Location and Capacity ………………………………………….………

21

Projected Production Schedule ………………………………………………….………

22

Production Capacity ……………………………………………………………….……

23
Production Flow Chart …………………………………………………….…………….

24

Production Process …………………………………………………………………….. 25

Ingredients ……………………………………………………………………………… 26

Supplies ………………………………………………………………………………… 27

Land ………………………………………………………………………………….….

27

Tools and Equipment …………………………………………………………………....

28

Machineries …………………………………………………………………………….. 29

Building …………………………………………………………………………….…... 29

Delivery Equipment ……………………………………………………….……………

30

Furnitures and Fixtures ……………………………………………………….………...

30

Office Equipment ……………………………………………………………….……… 31

Utilities ………………………………………………………………………….……… 31

Waste Management ………………………………………………………….…………. 32

MANAGEMENT ASPECT

Name and form of Business Organization ………………………………………….…...

33

Nature of Business ………………………………………………………………………

33
Organizing and Forming the Business …………………………………………………. 33

Securing Business Permit ………………………………………………….……

34

Registration Procedure with the Bureau of Internal Revenue (BIR) …………….

34

Registration with the Social Security System (SSS) …………………………… 35

Registration Procedure with Philhealth ………………………………………….

35

Registration Procedure with the Pag-Ibig ………………………………….……

36

Securing the Sanitary and Health Permit ……………………….……………….

36

Procedure in Securities and Exchange Commission (SEC) …….………….……

37

Registration of Business Name with the DTI ………………….………………..

37

Mandatory Requirements for All Employees …………………………….……..

38

Food and Drug Administration (FDA) ……………………………….………… 38

Leyte Electric Cooperative …………………………………………….………..

38

Leyte Metropolitan Water District (LMWD) ………………………….……….. 39

 Business Registration to the Barangay ………………………………….………

39

Registration of the Business with the Mayor’s Office ………………….….……

39

City’s Engineer Office (CEO) ………………………………………….………. 39

Organizational Structure …………………………………………………….…………..

41

Job Description and Specification ……………………………………….……………....

42

Articles of Co-Partnership ……………………………………………….……………...

45

Compensation Structure ……………………………………………….……………….. 49

FINANCIAL ASPECT

Financial Assumption …………………………………………………………….…….. 50

Income Statement …………………………………………………………….………… 51

Statement of Cash Flows …………………………………………………………….….

51

Projected Balance Sheet ………………………………………………………………... 52

Statement of Partner’s Equity ……………………………………………………….…..

53

Statement of Projected Sales ………………………………………………………….... 54

Inventory …...…………………………………………………………………………... 54
Direct Materials Used …………………………………………………………………...

56

Direct Labor ……………………………………………………………………………. 56

Overhead Cost Budget …………………………………………………………….…….

57

Finished Goods …………………………………………………………………….……

58

Cost of Goods Manufactured and Sold …………………………………………….……

59

Marketing and Operating Expenses ……………………………………………….…….

60

Financial Analysis ……………………………………………………………………… 61

Return on Investment …………………………………………………….……...

61

Return on Equity …………………………………………………….…………..

62

Contribution Margin ………………………………………………….…………

63

Net Profit Rate ………………………………………………………….……….

63

Accounting Rate of Return …………………………………………….………..

64

Internal Rate of Return ………………………………………………….……… 65

 Discounted Cash Payback Period ……………………………………….………

67

SOCIO-ECONOMIC ASPECT

Contribution to Income and Employment ……………………………………………… 68

Contribution to the Government ………………………………………………….……..

68

Contribution to the Community ………………………………………………................

68

Appendix

Perspective Building Plan

First Floor Plan

Second Floor Plan

Vicinity Map

Gantt Chart

Bibliography