I. INTRODUCTION The Calinan of today has gone far from its unrefined beginning to a flourishing and developing community. Standard of living and the way of life improved. People have reached the supremacy of sophistication resulting to higher demand for goods and services to satisfy their needs and wants. Cultures in politics, health and public services, economic, socio-economic, and tourism are altered to conform to the undying needs of the society. Even in the world of education, Calinan has perked up resulting to the existence of different learning institutions. In connection to this, students, faculty and other members of the academe, and office employees’ demand for services and products that are essential to their field of interest hikes. In respond to this, many businesses have been established to meet such demands. However, the proponents observed that a one stop shop catering both photocopying and merchandising of school and office supplies services is of great need to capture the unsatisfied demand of the prospect customers supported by the survey conducted showing that 94% and 68% of the respondents believe that their th eir dem deman ands ds for ph phot otoco ocopy pying ing se serv rvice ices s an and d me merc rcha hand ndisi ising ng ser servi vices ces respectively are not met by the existing businesses. The proposed business aims to get hold the demands of the student students s and faculty of the different schools located in the vicinity of the business’ proposed locat loc ation ion na name mely: ly: Ho Holy ly Cr Cros oss s Co Colle llege ge of Ca Calin linan; an; Ca Calin linan an Na Natio tiona nall Hi High gh School; Lt. Cipriano Villafuerte Sr. Elementary School; and Calinan Central Elementary School.
A. OBJ OBJECT ECTIVE IVE OF THE STU STUDY DY •
This Th is stu study dy aim aims s to de deter termin mine e the fea feasib sibili ility ty of est establ ablish ishing ing a
Multipurpose Cooperative in Calinan, Davao City.
1
•
This study also aims to merchandise office and school supplies and
to offer photocopying services that the targeted customers would like to avail.
•
It also seeks to determine the size of the prospective market and
other aspects related to the success of the cooperative.
B. SCO SCOPE PE AND AND LIMI LIMITAT TATION IONS S
The main focus of this project study is the feasibility of the proposed Multi Mul tipur purpos pose e Co Coop opera erativ tive e in Ca Calin linan, an, Da Dava vao o Ci City ty.. Lik Like e mo most st bus busine iness ss proposals, feasibility criteria have major aspects that need to be considered in arriving at final conclusions and recommendations. The aspects that need to be fact factore ored d into this stud study y are divi divided ded into project project sum summar mary, y, mark marketin eting, g, organiza orga nization tion and man managem agement; ent; the tec technic hnical, al, fina financia ncial, l, soc socioio- econ economic omic aspects, and legal aspects.
Respons Res ponses es to the que questio stionna nnaire ire were limited limited to stud students ents,, facu faculty lty and memb me mbers ers of the aca acade deme me,, an and d em empl ploye oyees, es, bo both th gov gover ernm nment ent an and d no nonngover go vernm nmen entt doi doing ng th their eir fie field ld of int inter erest est ne near ar th the e vic vicini inity ty of the pr propo opose sed d location in Calinan. They were considered as the target market since they are the most likely buyers of the goods and services offered by the proposed cooperative. coopera tive. Only those who were identified as part of the target market were considered and given the chance to answer the questionnaires regarding the establishment of the multipurpose cooperative.
C. SIG SIGNIF NIFICAN ICANCE CE OF THE STU STUDY DY
2
•
This study also aims to merchandise office and school supplies and
to offer photocopying services that the targeted customers would like to avail.
•
It also seeks to determine the size of the prospective market and
other aspects related to the success of the cooperative.
B. SCO SCOPE PE AND AND LIMI LIMITAT TATION IONS S
The main focus of this project study is the feasibility of the proposed Multi Mul tipur purpos pose e Co Coop opera erativ tive e in Ca Calin linan, an, Da Dava vao o Ci City ty.. Lik Like e mo most st bus busine iness ss proposals, feasibility criteria have major aspects that need to be considered in arriving at final conclusions and recommendations. The aspects that need to be fact factore ored d into this stud study y are divi divided ded into project project sum summar mary, y, mark marketin eting, g, organiza orga nization tion and man managem agement; ent; the tec technic hnical, al, fina financia ncial, l, soc socioio- econ economic omic aspects, and legal aspects.
Respons Res ponses es to the que questio stionna nnaire ire were limited limited to stud students ents,, facu faculty lty and memb me mbers ers of the aca acade deme me,, an and d em empl ploye oyees, es, bo both th gov gover ernm nment ent an and d no nonngover go vernm nmen entt doi doing ng th their eir fie field ld of int inter erest est ne near ar th the e vic vicini inity ty of the pr propo opose sed d location in Calinan. They were considered as the target market since they are the most likely buyers of the goods and services offered by the proposed cooperative. coopera tive. Only those who were identified as part of the target market were considered and given the chance to answer the questionnaires regarding the establishment of the multipurpose cooperative.
C. SIG SIGNIF NIFICAN ICANCE CE OF THE STU STUDY DY
2
The intention of this study is to aid, guide, and assist the proponents in determining whether or not to establish the business. This study would help the Holy Cross College College of Calinan Administrat Administration ion in determining determining the viability of establishing its Student Multipurpose Cooperative in Calinan.
D. ME METH THOD ODOL OLOG OGY Y
A project summary should be prepared to present the highlights and the “cap “c apsu sule le vi view ew”” of th the e wh whol ole e pr proj ojec ect. t. Mo More reov over er,, ma mark rket et st stud udy y is to be cond co nduct ucted ed to de dete termi rmine ne th the e ma mark rket et de dema mand nd for the pr prop opose osed d pro projec ject. t. Technical analysis should be done the discuss the nature of the product line, the technology necessary for the operation and its availability. Inasmuch, financi fina ncial al proj projecti ections ons sho should uld be cons consider idered ed to pres present ent the over overall all fina financia nciall pictur pic ture e of the fir first st five (5) ye years ars of op opera erati tions ons
of the bus busine iness ss.. So Socio cio--
economic feasibility likewise should be prepared to discuss the effect of the project on the society and on the economy as a whole. Finally, management and organization analysis should also be done to identify the management structure of the proposed project.
II.. PR II PROJ OJEC ECT T SUMM SUMMAR ARY Y A. NAME OF THE ENTERPRISE: Business Students’ Multi-Purpose
Cooperative (BSMPC)
The prospect members of this business organization are the current Business students as well as the Business Students Alumni of Holy Cross College Col lege of Cali Calinan nan – Coll College ege Department Department who are interested interested to beco become me members of the proposed cooperative. With this reason, Business Students’
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Multi-Purpose Cooperative (BSMPC), the cooperative’s name, reflects the field of interest of its corporators and members. However, it does not necessarily mean that it will exclusively cater its services to the business students of the said institution only. This cooperative also wishes to serve other potential customers around its vicinity.
B. LOCATION: Duyac Street Calinan, Davao City
Duyac Street is the proposed location of the proposed cooperative due to following reasons: •
The location is accessible to the potential customers which include not only the Holy Cross College of Calinan students and faculty but as well as the students and teachers of the neighboring schools namely: Calinan National High School, Calinan Central Elementary School, Lt. Cipriano Villafuerte Elementary School.
•
The location is strategically situated to cater the needs of the settlers of the community where the proposed firm is to be established. The mentioned settlers could be the students and teachers studying in the city, office workers, household members who need school and office supplies and services such as photocopying and merchandising.
•
The proponents observed that in the proposed location only few enterprise has existed that will somehow meet the growing demand of the customers for school and office supplies as well as for photocopying services in just one stop shop.
4
Moreover, these are the considered factors which affect the choice of location: •
The sources or the suppliers of merchandise ( Felcris Calinan and NCCC Supermarket Calinan) to be sold to the prospect customers is located near to the proposed location- an edge on the enterprise’s part. The proximity of the suppliers to the enterprise’s location allows the enterprise to minimize its transportation expenses, freight in and other related expenses.
•
Inasmuch, the human resources (HCCC Business Students Alumni) needed in running the enterprises are living near the enterprise’s location.
•
The mode of transportation in reaching out the different suppliers from the enterprise’s location is tricycle. The suppliers can also be reached through walking.
•
Since it is the first operation of the enterprise and because of limited availability of funds, the proponents decided to lease the existing stall found in the proposed location.
C. DESCRIPTIVE DEFINITION OF THE PROJECT The proposed enterprise is in line with government encouraged undertaking supported by Republic Act No. 9520, also known as the "Philippine Cooperative Code of 2008", Article 2: Declaration of Policy .- It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing
people
power
towards
the
attainment
of
economic
development and social justice. The State shall encourage the private sector to undertake the actual formation and organization of cooperatives
5
and shall create an atmosphere that is conducive to the growth and development of these cooperatives. "Toward this
end,
the
Government
and
all its
branches,
subdivisions, instrumentalities and agencies shall ensure the provision of technical guidance, financial assistance and other services to enable said cooperatives to develop into viable and responsive economic enterprises and thereby bring about a strong cooperative movement that is free from any conditions that might infringe upon the autonomy or organizational integrity of cooperatives. "Further, the State recognizes the principle of subsidiarity under which the cooperative sector will initiate and regulate within its own ranks the promotion and organization, training and research, audit and support services relative to cooperatives with government assistance where necessary.
D. PROJECT’S LONG-RANGE OBJECTIVE In ten (10) years time, after its first operation the enterprise envisions to eventually buy the lot and the space which the enterprise is currently leasing, if the owner sells it. The enterprise will acquire additional photocopy machine and a computer set to intensify the services it offers. During this time it can be able to generate employment, contribute to the Calinan’s economic development through paying taxes.
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Ye Ye Ye Ye Ye Ye Ye Ye Ye Ye Actions
Inauguration / Opening of Business Business Operation Proper
ar
ar
ar
ar
ar
ar
ar
ar
ar
ar
1
2
3
4
5
6
7
8
9
10
X
X
X
X
X
X
X
X
X
X X
Purchase of one (1) additional colored photocopying
X
machine Additional Business Line
X
Store Expansion
X
Additional manpower (2
X
personnel) Increase in Market Share
X
X
X
X
X X
X
X
X
E. FEASIBILITY CRITERIA
The guidelines to be used in judging the feasibility of the enterprise are: (1) profitability – the ability of the organization to utilize its assets, resources to generate a reasonable and sound rate of return; (2) Going Concern Ability – the capacity of the enterprise to continue its existence regardless of the instability of the economy and its ability to continuously serve the community; (3) Socio-economic Impact – the ability of the business to serve the community where it belongs by job creations, tax payments, and alleviation of members’ standard of living.
F. HIGHLIGHTS OF THE PROJECT i. History
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The project came about because of the major problems of the HCCC students especially of the college department with regard to the number of hours that the services of the bookstore, which is situiated inside the campus, are available. The students find it inconvenient because every time they have to buy school supplies the bookstore is not always open.
With regard to the photocopy service of the school, most of the students find the existing price they are offering burdensome which is evidently more expensive than that of the prices offered by the same line of business outside the campus.
As a result, the proponents have decided to propose this project
to
establish
a
one-stop-shop
photocopying
and
merchandising school supplies services to answer the clamor of the Holycrossians and to meet the existing demand of other potential customers.
ii. Project Timetable and Status
The research project started with the identification of the proponents and the prospect study. The feasibility study of the proposed business is expected to be done in less than a year. During the first month of the entire study the proponents will identify the type of business, location, history, nature of industry, mode of financing, investment cost and major assumptions. Moreover, from first to the sixth month, the proponents will conduct market, technical, and socio-economic survey, as well as economic survey for CDA (Cooperative Development Authority) registration. At some point on the seventh month, the proponents will finalize,
8
review, and harness the totality of the feasibility study for final presentation and approval. Supposing that the feasibility study is approved, on the seventh month the proponents will look into consideration the preparation of the proposed business site. Throughout the seventh up to the ninth month, business permit and CDA registration will be processed. Furthermore, on the ninth to the tenth month, hiring and training of personnel will occur. Purchase of machineries and supplies for merchandising and photocopying services is expected to materialize on the tenth to eleventh month. Finally, on the twelfth month, the business will commence its operation.
iii. Nature of the Industry
The proposed project is a cooperative type of business. Its product lines are photocopying services and merchandising of office and school supplies.
The business aims to meet the existing
unsatisfied demand of the target customers by providing the demanded products and services.
iv. Mode of financing
The sources of funds include the paid-in capital of the corporators, members of the proposed cooperative, and HCCC College Alumni – Business Department, and borrowings from lending institution.
The accumulated funds will be used for downpayment in purchasing the machineries and equipment. Portion of it would be spent for the purchase of inventories, rental pre-payments, and store renovation.
9
The proponents decided to borrow certain amount from lending institution since the paid-in capital of the expected members is insufficient to cover up the needed initial investment.
In the case of the machineries and equipments purchased on account, the obligations will be paid through monthly installments. The accounts payable due to the lending institution will also be settled monthly.
v. Investment Cost To make the project operational the required funds should amount to Php 188,700.
The Php 188,700 will be allocated to the following: Quantity Item 2 Photocopying machines 1 Computer Set 2 Electric Fan (Stand Fan) Furniture and Fixtures 1 7 4 2
Bench Office Chairs Office Tables Display Shelves
Unit Price Total Php 40,000 Php 80,000 35,000 35,000 2,000 4,000 13,700 300 200 500 5,000
300 1,400 2,000 10,000
Merchandise Inventory Office Supplies Pre-paid rent (2 months)
30,000 3,000 TOTAL Php
5,000 6,000 188,700
G. MAJOR ASSUMPTIONS vi. Market Feasibility
10
There are already existing businesses catering photocopying services and merchandising of school supplies that are operating in the place where proposed business is to be established. However, the proponents found out that they are not efficiently and satisfactorily meeting the demands of the customers. These unsatisfied demands now constitute a portion of the total market share of the proposed business. These unsatisfied demands will be met by employing marketing strategies such as discounts on volume sales, value added services, quality controlled products and services, and promotions.
vii. Technical Feasibility
The proposed cooperative will cater two lines of business which are: photocopying services and merchandising of school supplies. In terms of merchandizing school supplies, the proposed business will be selling varied supplies in retail.
In addition, during its operations, the business will be using two photocopying machines, a computer set, stand fans and furniture and fixtures.
viii. Financial Feasibility
During the first two years of operations, the business experiences losses because it is still on the process of adjustment. However, during the succeeding years it has earned reasonable net surpluses which are indicators of its ability to earn return out of the invested resources.
11
Looking into the financial ratios, the business is said liquid throughout its first five years of operations. In terms of its financing, the business equity is mostly financed by the members’ investments. There is a positive relationship between the return on sales and the fixed asset.
ix. Socio-economic Feasibility
The business operations will give rise to employment and distribution of income.
Equally, the standards of living of the
employed individual as well as his/her family will also improve. More income in the hands of the people would mean greater demand for goods and services. Thus, it does not only benefit the individuals and families but the entire economy as well, in accordance to the provisions of the Republic Act 9520 under Article 6 which states that:
“Purposes of Cooperatives. – A cooperative may be organized and registered for any or all of the following purposes:
“(1) To encourage thrift and savings mobilization among the members; “(2) To generate funds and extend credit to the members for productive and provident purposes; “(3) To encourage among members systematic production and marketing; “(4) To provide goods and services and other requirements to the members; “(5) To develop expertise and skills among its members; “(6) To acquire lands and provide housing benefits for the members; “(7) To insure against losses of the members;
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“(8) To promote and advance the economic, social and educational status of the members; “(9) To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and agricultural/industrial processing enterprises, and public markets; “(10) To coordinate and facilitate the activities of cooperatives; “(11) To advocate for the cause of the cooperative movements; “(12) To ensure the viability of cooperatives through the utilization of new technologies; “(13) To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation; and “(14) To undertake any and all other activities for the effective and efficient implementation of the provisions of this Code.
x. Management Feasibility
The management structure of the proposed business follows the typical structure of cooperative organization. In the highest hierarchy is the general assembly composed of all the members followed by the board of directors who formulates policies and rules for the affairs of the cooperative. Under the board of directors are the officers who directly manage the daily business operations. Lastly are the staffs who are involve in the daily business transactions.
The salary scales of the mentioned officers are based on the provisions of Republic Act 9520 or also known as the PHILIPPINE COOPERATIVE CODE OF 2008.
III. MARKET STUDY A. SERVICE DESCRIPTION
13
The proposed business project will cater two business lines namely photocopying services, and merchandising of school and office supplies. The students, teachers and other members of the academe of the schools mentioned earlier as well as the people residing within the vicinity of the proposed business location who need such services are the major customers.
B. DEMAND ANALYSIS
The target markets are the students, teachers and members of the academic institutions that the business endeavors to serve. The target markets are classified according of the type of services they demand. Based on the survey conducted out of 150 respondents, 88% said that they are not satisfied with the services of existing photocopying services and 58 % of them believed that the existing school and office supplies centers are not satisfying their needs for such supplies. Meaning, there are still number of customers that need the service of photocopying and office and school supplies that would satisfy their demand.
14
In relation to it, 98 % and 92 % of the respondents agreed that there is still a need for photocopying centers and office and school supplies center respectively to be opened which will meet the demands that are not catered by the existing businesses and 100% of them liked it to be a one stop shop (having photocopying services and merchandising of office and school supplies in just one store).
15
Moreover, most of the respondents agreed that the things that they do not like in the existing photocopying and office and school supplies centers are the unavailability of the services at all times, unapproachable store attendants, services and products which are of not good quality and the imposed products and services’ prices.
C. SUPPLY ANALYSIS
The direct competitors of the proposed business project are classified according to the type of services they are offering as well as the size and location of their existing businesses.
Specifically, the direct competitors whose business sizes are small, whose locations are near to the target markets and who are of most in number include the businesses whose establishments are just a couple of steps away from the target markets’ location. On the other hand, direct competitors whose business sizes are big, whose locations are a little bit far to the target markets and who are of least in number include Lilian Bazaar, Calinan Trading, and Nacario Printing Shop.
The type of market structure existing among the competitors is competition wherein there are many existing business ventures offering the same line of businesses which are photocopying and merchandising of office and school supplies. Thus, the proposed business project must
16
employ extensive and intensive marketing strategies to cope with the stiff competition.
As a counterpart to the survey conducted on the demands of the target customers, the proponents found out that 40% of the interviewed existing suppliers said that their supply is less than the customers’ demand. This shows that there is still a need for the proponents’ proposed business to be established in order to capture the unsatisfied demand.
D. DEMAND-SUPPLY ANALYSIS i. Demand-Supply Comparison The survey shows that the demand and supply do not meet at a certain point called equilibrium. The demands of the targeted customers exceed the supplies offered by the existing stores. With this reason, the proponents see an opportunity of realizing the proposed business.
E. PRICE STUDY i. Photocopying services (prices based on the existing businesses): Output Quality 1. Clear Copy
Paper Size
Price per sheet
(Bond Paper) Letter
(In Philippine Peso) 1.00
Legal
1.50 1.00 1.25
2. Ordinary Copy
Letter
1.50 0.50
17
0.75 0.75 2.00 1.50 per size
Legal Letter & Legal Letter
3. Reduced Copy 4. Enlarged Copy
adjustment
ii. Price Trends (Photocopying Services)
Output Quality
Paper
Price Per Sheet
Size Year
(In Philippine Peso) Year Year Year
Year
2009 1.00
2008 1.00
2007 1.00
2006 0.50
1. Clear Copy
Letter
2010 1.25
2. Ordinary
Legal Letter
1.50 0.75
1.50 0.75
1.25 0.75
1.00 0.75
0.75 0.75
3. Reduced
Legal Letter
0.75 2.00
0.75 2.00
0.50 2.00
0.50 2.00
0.50 2.00
Copy
&
4. Enlarged
Legal Letter
1.50
1.50
1.50
1.50
1.50
Copy
&
per
per
per
per
per
Legal
size
size
size
size
size
adjust
adjust
adjust
adjust
adjust
ment
ment
ment
ment
ment
Copy
iii. Responsiveness of Demand to Price Changes
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If the supply is held constant the demand for the photocopying services and office and school supplies relatively increases if the products and services’ prices decline. Conversely, if the supply is held constant the demand for the photocopying services and office and school supplies relatively decreases if the products and services’ prices increase.
iv. Establishment of Products and Services’ Selling Prices Output
Paper
Price Per Sheet
Size Year
(In Philippine Peso) Year Year Year
Year
Letter Legal Letter
2010 1.00 1.00 0.75
2011 1.00 1.00 0.75
2012 1.00 1.00 0.75
2013 1.25 1.25 1.00
2014 1.25 1.25 1.00
3. Reduced
Legal Letter
0.75 2.00
0.75 2.00
0.75 2.00
1.00 2.00
1.00 2.00
Copy
&
4. Enlarged
Legal Letter
1.50
1.50
1.50
1.50
1.50
per
per
per
per
per
size
size
size
size
size
adjust
adjust
adjust
adjust
adjust
ment
ment
ment
ment
ment
Quality
1. Clear Copy 2. Ordinary Copy
Copy
F. FACTORS AFFECTING THE MARKET The demands for the services and products of the cooperative are affected by the following:
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i. Population Growth The demands for photocopying services and office and school supplies are affected by the population growth of the students, teachers and office employees in the area. It is expected that in the coming years, the population of the students in the aforementioned schools would increase due to following reasons: a) increased in tuition fees of the universities in downtown; b) increased in transportation, food, lodging expenses of the students studying in downtown which the parents cannot anymore afford; c) an increasing population trend in the public schools has been observed for several years; d) in much the same manner, an increase in the number of students also means an increase number of teachers; e) increased number of employees due to the increasing number of offices and establishments in Calinan.
Thus, the proponents see a direct relationship between the population growth and the demand for photocopying services and office and school supplies.
ii. Income Changes
As the income of the target customers increases their possible demands for such product and services are also expected to increase proportionately. This is due to the consideration that their purchasing capacity has substantially increased.
iii. Rural and Urban Developments
The developments in Calinan in terms of its economic, political and educational aspects pave the way for an increase in employment
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and consequently an increase in income resulting to an improved standard of living. With this regard, the demand for the products and services that the proposed cooperative is offering is also expected to rise.
Prices will be affected by inflation. Prices tend to go up whenever inflation rate increases. As a result the purchasing power declines in proportionate to an increase in the prices of goods and services.
G. MARKETING PROGRAM i. Type of Prevalent Marketing Program The following are the marketing programs that the cooperative are going to adopt: a. Discounts on volume sales b. Value added services (free delivery, staples, etc.) c. Quality controlled products and services
ii. Promotions
The end users of the products and services would be aware by the services of the cooperative through distribution of leaflets. The end users are likewise be enticed to patronize the cooperative by giving discounts and promos, by providing them a good customersupplier relationship (CSR), and by hitting customer satisfaction.
IV. TECHNICAL STUDY A. PRODUCTS The proposed cooperative will cater two lines of business which are: photocopying services and merchandising of school supplies.
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In photocopying services the cooperative will use substance 20 bond papers with sizes – 8X11’(letter) and 8X13’(legal).
Meanwhile, in merchandising of school supplies, the cooperative will sell the following products: Item Short Bond Paper Short Bond Paper Long Bond Paper Long Bond Paper Construction Paper
Item Description 8.5”x11” substance 20 8.5”x11” substance 16 8.5x13” substance 20 8.5x13” substance 16 8.5”x13”
Construction Paper
assorted colors 8.5”x11”
Construction Paper
assorted colors 9x12”
Colored Paper
assorted colors Short
Colored Paper
Assorted colors Long
Intermediate Paper
Assorted colors Class A
Intermediate Paper
(white sheets) Class B (dirty white sheets)
¼ and ½
Class A and B
Intermediate paper Yellow Pad
Class A
Paper Yellow Pad
(fine in quality) Class B
paper Colored Bond
(not fine in quality)
Long
Colored Bond
Assorted in color Short
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Ball Pen Pencil Fasteners CompositionNotebook Writing Notebook Big Notebook Thumbtacks Glue Paste Folder
Assorted in color Assorted brands and colors Assorted brands and numbers Assorted color Assorted leaves Assorted Leaves Assorted Leaves Assorted brands and volume Long & Short – Brown
Plastic Folder
Long & Short
Envelope
Assorted Colors Long & Short
Plastic Envelope
Brown Long & Short
Scissors Elementary Paper Index card Crayons Manila paper Scotch Tape Masking Tape Graphing Paper Chalk Eraser Sharpener Cartolina Illustration Board Stickers Silver Dust Water Cellophane Cript Paper Japanese Paper Drawing Book Formal Theme Informal Theme Sulating Pangwakas Clear Book Marker Permanent Marker
Assorted Colors Assorted Colors Grades 1, 2, 3 & 4 Various Sizes Various sizes Various Sizes Various Sizes Assorted Brand and color Assorted sizes and designs Assorted Colors and quality Various Sizes Assorted Colors Assorted Colors Assorted Colors Assorted Colors Various Sizes
Assorted Colors Assorted Colors Black, Blue and Red
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B.
MACHINERIES
AND
EQUIPMENTS The following are the machineries and equipments that the cooperative is going to acquire:
Machineries and
Cost
Equipments Computer Set
Photocopying
Php 000 Php 80,000
Machines
Stand Fans
35,
(2 machines) Php 4, 000
Origi n Local
Local
Local
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Stand Fan
Computer Set
Photocopy
Standard Capacity of each Photocopying Machines and the Desired Maximum Capacity
Machineries
Standard Capacity Expected to last for 10
Photocopying Machine 1
years Paper Capacity 2,500 sheets Maximum Expected to last for 10
Photocopying Machine 2
years Paper Capacity 2,500 sheets Maximum
Computer Set Stand Fans
Expected to last for 5 years Expected to last for 3 years
Desired Maximum Capacity Expected to last for 15 years Paper Capacity 3,000 sheets Maximum Expected to last for 15 years Paper Capacity 3,000 sheets Maximum 10 years 5 years
Proposed Store Site C. COOPERATIVE’S LOCATION
The proposed cooperatives location is desirable in terms of its distance to the market where the business gets its merchandise as well as to its target customers. Moreover, the location is ideal because the water, transportation and light necessities are accessible.
25
VIEW A Holy Cross College of Calinan
Proposed Store Site
26
VIEW B
D. STORE LAYOUT
27
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E. BUILDING AND FACILITIES During the first five years of the cooperative’s operation, it opts to lease the space, the lot and the building where the business operation are to be conducted
Drainage facilities, road improvement are not of great consideration in this project.
F. UTILITIES The cooperative needs electricity and water for its daily operation thus, the organization has to set up a connection for electricity and water.
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G. WASTE DISPOSAL
The cooperative’s waste could be in the form of crumpled papers, cutouts, damaged office and school supplies. Since one of the goals of the business is to adopt quality control system, the business expects to have lower quantity of waste of the disposal.
The waste accumulated by the cooperative out of the daily operations which cannot anymore be recycled shall be placed in a waste bag. Every week, the business shall throw them at the garbage bins provided by the government which are eventually collected by the CENRO at a specified schedule.
However, those wastes
that can still be recycled will be used by the
organization to minimize its expenses. Other option would be to sell those wastes in order to gain something out of them.
H. LABOR REQUIREMENTS
There will be two (2) staffs who will be employed by the cooperative. The remuneration for the staffs will be based on the present standard minimum wage. Before the actual business operations, the staff will be trained on his/her specific job. There would be seven (7) board of directors who will be compensated according to RA 9520, Chapter IV, Article 46. There will also be one general manager, one secretary, one treasurer, and one cashier whose compensation and tenure are fixed by the board of directors
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V. FINANCIAL FEASIBILITY A. MAJOR ASSUMPTIONS i. Dividend Policies Under Republic Act 9520, Chapter X, Article 86, The net surplus of every cooperative shall be distributed as follows:
"(1) An amount for the reserve fund which shall be at least ten per centum (10%) of net surplus: "(2) An amount for the education and training fund, shall not be more than ten per centum (10%) of the net surplus: (3) An amount for the community development fund, which shall not be less than three per centum (3%) of the net surplus: "(4) An optional fund, a land and building, and any other necessary fund the total of which shall not exceed seven per centum (7%): "(5) The remaining net surplus shall be made available to the members in the form of interest on share capital (dividends) not to exceed the normal rate of return our investments and patronage refunds: Provided, That any amount remaining after the allowable interest and the patronage refund have been deducted shall be credited to the reserve fund.”
ii. Labor and Management Compensation
There will be two staffs who will be employed by the cooperative. The remuneration for the staffs will be based on the present standard minimum wage. Before the actual business operations, the staff will be trained on his/her specific job.
There would be seven board of directors and one general manager. Under RA 9520, Chapter IV, Article 46 Compensation. – (1) In the absence of any provisions in the bylaws fixing their compensation, the directors shall not receive any compensation except for reasonable per diems: Provided however, That the directors and
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officers shall not be entitled to any per diem when, in the preceding calendar year, the cooperative reported a net loss or had a dividend rate less than the official inflation rate for the same year. Any compensation other than per diems may be granted to directors by a majority vote of the members with voting rights at a regular or special general assembly meeting specifically called for the purpose: Provided that no additional compensation other than per diems shall be paid during the first year of existence of any cooperative.
"(2) The compensation of officers of the cooperative as well as the members of the committee as well as the members of the committees created pursuant to this Code or its bylaws may be fixed in the bylaws.
"(3) Unless already fixed in the bylaws, the compensation of all other employee shall be determined by the board of directors.
iii. Method of Depreciation
The method of depreciation that the business will use in depreciating its machineries and equipment is Straight Line Method represented by this formula:
Annual Depreciation =
Total Depreciation Estimated Useful Life (in years)
Whereas, the business is going to follow the following formula for computing the amortization:
Original Amount Borrowed =
R
1- (1+i) i
-n
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B. TOTAL PROJECT COST The table shows the projected project costs: Fixed Assets: Quantity 2 1 2
Item Photocopying
Unit Price Php 40,000
machines Computer Set Electric Fan (Stand
Php
35,000 2,000
Total 80,000 35,000 4,000
Fan) Furniture and Fixtures TOTAL FIXED ASSETS Php
13,700 32,700
Current Assets: Quantity
Item Cash On Hand Supplies Inventory
Unit Price
Office Supplies Pre-paid rent (2
Total 15,000 30,000 5,000 6,000
3,000
months) TOTAL CURRENT ASSETS Php
56,000
Php
132,700 56,000 188,700
Total Project Cost: Total Fixed Assets Total Current Assets
Total Project Cost Php
C. SOURCES OF FINANCING THE PROJECT
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