Conducted by BatStateU
, Started on 2017 -
Completed on 2017
Completed
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Healthy Pantry, which will be located at a 40-square meter space in Nuciti Central Mall in Batangas City, is a retailing business that will provide fresh organic vegetables to the households and restaurants in Batangas City. The business will operate for eleven (11) hours from 9:00 in the morning until 8:00 in the evening. The business will not operate in cases that there will be a holiday or other seasonal activities. The proponents anticipate the viability of Healthy Pantry into the market technically, financially, and economically. All the essential aspects that were considered on the project suggests that the business will penetrate in the market. The major factors that were considered to validate the business’s feasibility are the project’s intended market, location, technical requirements, financing capability, the assurance of its productivity and profitability, and the capacity to manage the business. Based on the data that the proponents gathered on the demand of organic vegetables in Batangas City, as well as the supply of vegetables in Batangas City, it was concluded that the number of customers willing to purchase organic vegetables is greater than those who are not willing. In addition to this, there is an increase in the projected demand and supply which is a clear manifestation that the potential market creates a chance for penetration of competitors for Healthy Pantry in the market. Along with this, the selling price of organic vegetables in Healthy Pantry can be considered competitive as that of the conventional vegetables sold in the vegetable stalls of wet markets and grocery stores in Batangas City. In terms of the business’ technical feasibility, the operation process and required store plan of Healthy Pantry were distinguished. From the data gathered, the facilities and service schedule had been formulated which then determined the necessary equipment, supplies, salaries, and wages needed for the operational fulfilment of Healthy Pantry. The availability of the equipment and supplies were found locally where price and quality considerations were taken in account in choosing the best alternative. The business established with a total initial investment cost of Php 4,540,492.40 shall be financed by the four (4) shareholders. The total investment cost is divided among the four (4) which amounted to Php 1,135,123.10 each. The stability of the business is reflected by the financial analysis particularly the probability ratios. The results from the net profit margin, the return on asset, and return on owner’s equity of Healthy Pantry indicate a high possibility of gaining profits and the capability of the business of generating cash on its ten-year operation. Based on the financial assessment through net present value (NPV), financial rate of return (FIRR), and payback period which all resulted to a positive result, it indicates a good operational performance of Healthy Pantry and its financially viability. Healthy Pantry can gain its initial investment in a short span of time. Since the mathematical computation of obtaining the payback period of Healthy Pantry yield 3.89 years or approximately 3 years and 11 months and the proponents expected a 10-year payback, it was concluded that the business is viable. The direct economic benefits of the business to the stakeholders are through employment and income. The government can also gain benefits through the annual taxes, permits and licenses and other fees that will be paid by the establishment. Moreover, political and legal consideration were also identified for the operation of the business. Manpower requirements as well as the job description and specification for all needed employees and workers have been instituted by the management. With all the criteria and considerations taken, it was concluded that the establishment of Healthy Pantry, an organic vegetable retail store in Batangas City is feasible.