EXECUTIVE SUMMARY

Name of the Firm CMC Company is a general type of partnership wherein partners conducting a business jointly have unlimited liability, which means their personal assets are liable to the partnership's obligations. CMC Company is the name of the propsed partnership to manufacture the PreppyHands Hand Sanitizer. CMC Companys name originated by the combination of the partners first name initials which are C, M and C which stands for Charmaine, Maria and Cristel. Green and pink had been chosen since this partnership will be owned by an all-girl group. Pink suggests femininity and green symbolizes calmness. Location The partnership office and plant site will be located in Pasay City. This place had been chosen by the researchers because of its convenience. It is place that is near to the market, public hospital, educational institution, residential area and commercial locale. Brief Description of the Project The study pertains about the feasibility and viability of hand sanitizer with mosquito repellent in the target market. This hand sanitizer is specially created not only to sanitize its users hands, but also to repel mosquito. This

doubles the purpose of the product, hence, giving the consumer another reason to buy this product. This study will not only focus in the marketing side of putting up this kind of business, instead, this will also tackle management, technical, financial and socio-economic factor which are deemed necessary to put up such business. The researchers studied the market factors and results of the survey appeared to be favorable .The projected demand for the product, they first have to compute for the projected population based on the Special Release 2010 Census of Population and Housing Final Result obtained by the proponents from Pasay City Hall, Community Planning Office, which is 392,869 and continues to grow at a rate of 1.02% per year. The growth rate based on the census signified that the demand for the product will continue to increase, but also, this will be subject to some constraints. The selling price of PreppyHands Hand Sanitizer is affordable to its target market. It is based on the materials, direct labor, factory overhead and competitors selling price. The actual process in manufacturing hand sanitizer and technical activities were discussed based on the researchers knowledge. The product was described in a way that all its readers will comprehend. The partners agreed to form a general partnership. The researchers formalized the organizational structure that will best fit the companys requirement. Manpower and company policies were also plotted in this study.

The financial aspect was a discussion in monetary. Project cost, capital requirements, sources of financing, financial statements and ratio analysis will be discussed. The economic and social benefits that will arise in the making of this company will be discussed in the social desirability aspect. Project Summary Management Study. Positive results and failure of business largely depends on efficient and effective utilization of business management. The researchers chose a partnership as their form of ownership which will fall under the name, CMC Company. The entity will be owned by Ms. Charmaine N. Belza, Maria Teresa A. Gacot and Cristel Jane S. Miranda. They will contribute P220, 000.00 each and divide profit and losses equally. One of the owners will serve as the companys manager and will receive a monthly compensation of P20,000.00. The organizational policies created by CMC Company were deemed necessary to ensure proper handling of assets and manpower. Taxes and fees mandated by law are paid on due to.

Market Study. Marketing will constitute a great impact on the companys success. Demand and Supply are computed based on the projected population and market survey and assumptions. Men and women residing in Pasay City that ages 15 to 44 years old were the subject

respondents for this feasibility study. The researches have chosen them since it is very evident that teen age individuals are fond of buying products like hand sanitizers because it appears to be trendy.

The price strategy that will be used in this product will depend to on the production costs and competitors. In relation to this, we will sell our product at a very reasonable price in which our market could afford without compromising its quality.

PreppyHands Hand Sanitizer is a product that concentrates in personal care, specifically in hygienic means. Its very convenient nature works well in his anti mosquito properties. Because of its ingredients such as Aloe Vera gel, essential oils and witch hazel extracts, this product tend to be effective with a reasonable price. In terms of uses, PreppyHands Hand Sanitizer does not only provide an anti microbial efficacy, but it can also be used as a mosquito repellent. It is a product that sanitizes the hands without the use of soap and water, making it a substitute mostly on the peaks of your times. These qualities are some of the basis why PreppyHands Hand Sanitizer can possibly penetrate the market. Technical Study. Hand Sanitizer with Insect Repellent is the proposed product in this feasibility study. It is expected to be sold to the researchers target market. The product is primary made up of witch hazel extract, Aloe Vera Gel and essential oils, just right for an environmental cause. The

partnership office and plant site will be located in Pasay City. This place had been chosen by the researchers because of its convenience. It is place that is near to the market, public hospital, educational institution, residential area and commercial locale. The plant layout design pictures out the kind of space needed for the production. As seen in the layout, it appeared that storage room and workshop place is adjacent to each other, thus, lessening the time to transfer raw materials in the workspace. The manufacturing process that as to be undergone by the product is not complicated since it only concentrates on proper evaluation of raw materials and mixing. The first process involved in the making of the product is to prepare the ingredients and equipment; this will roughly consume 15 minutes. The second and third procedure is the measurement of ingredients and Evaluation of Measurement. This will take 45 minutes each. As you can see, those procedures will take a lot of time because of the sensitivity of the evaluation. There measurement must be accurate to retain the quality of the product. After that, the raw materials will be put in the machine. It is necessary put the raw materials in the machine properly and gently to avoid the disposal of it. The first raw material to be put is the aloe Vera. Next are the essential oils, such as tea tree oil, lavender oil and citronella oil, and the witch hazel. The raw materials will then be processed. Having quality control helps to maintain the standard required for the product. If the product did not achieve the required standard go back to step 1 to adjust the measurement of the ingredients put. In relation to this, Assessment of the quality control will

come next to the processing. The last procedure that has to be undergone to finish the manufacturing process is the packaging. This will require more effort and time as compared to processing. However, this will be easier to conduct because of the machine comes a provision for packaging thus, lessening the time and manpower requirement. The bottle or container is then put to the equipment and let it be filled accordingly to its size. After that, the finished products will then be packaged depending on its volume. The company will produce 48,000 units annually and will continue to increase by 8% in the following years. Disposal of wastes will not be too much burden for the company since the city government of Pasay City has a campaign for collecting garbage. The plastics and other recyclable garbage will be donated to the city government as a cause for environmental awareness. Financial Study. The initial start up cost for the project will be P660,000.00. This figure is based on the computation made for the requirements for 3 months. Profit and loss will be divided equally to the partners. The same percentage applies to their capital contribution. Projected financial statements such as Statement of Financial Position, Statement of Income and Statement of Cash Flow were prepared as the basis for the financial analysis. The financial analysis had shown that the payback period for the amount invested to this project will have a payback period of 1.72 years at 58%.

Socio-Economic Study.

Putting up a business will not always

concentrate in making profits; instead, it must also take into consideration its effect to the economic and social side of the state. Manufacturing hand sanitizer with insect repellent will give the consumer the possibility of getting overwhelmed by the fact of having their hands sanitized with a touch of little insect repelling power provided the product. This could possibly overcome some percentage in the consumers demand. Since people nowadays are being copied by instant and in-one products, hand sanitizer with insect repellent can make a possible penetration to its market, providing convenience to the market. Putting up this business will not only benefit the proponents, otherwise, suppliers will also be interested because of the orders that they can acquire from the company. This will provide more income to them. On the employees side, since there are a lot of people in Pasay City are unemployed, opening this kind of business will also open doors to the opportunity of earning something for a living. Government bodies will also be benefited through taxes and contributions to be collected in the company. Conclusion. Based on the study, the manufacturing of hand sanitizer with mosquito repellent is possible to be actualized based on the demand and supply. There are high percentages of respondents who are willing to try it. CMC Company will sell this product in a reasonable price without compromising the products quality.

In the technical side, there will be a machine to be used in this business. At least 200 pieces of 30mL hand sanitizer with insect repellent will be produced. Gantt chart for production has to be followed.

CHAPTER 1 INTRODUCTION

Sustainable businesses also known as Green Businesses have been escalating throughout the world for years. This kind of business tackles mainly on environmental and non-toxic products that could possibly replace the demand for chemical-based products which can be hazardous to living beings. Eco friendly products have been trending worldwide, thus, making people more interested to the product, and consequently provide higher demand. On the other hand, health care products have been emerging and are expected to continue to produce positive results over the forecast period, with a constant value CAGR of 2% over the next five years. Thus, giving higher chances of being more economically certain- providing higher potential employment rate for Filipino people.

In relation to these, Filipinos nowadays are being more concerned with their health, safety and environment. Our all-in-one CHAPTER 2 MANAGEMENT ASPECT Objectives

Management, being one of the basic elements which that make up a business entity, serves as the skeleton that guides an organization to an orderly and systematic matter. This serves as a fundamental means of motivating each individual comprising the entity in achieving a common goal.

An effective and efficient management has always been the primary goal of every business organization, and as to this, CMC Company is embodied by the following objectives:

1. To determine if our target market is enough to support this proposed business. 2. To determine how competitive can be in our target market. 3. To determine how much money will you need before your business is operational

CHAPTER 3 MARKETING ASPECT

Objective The main objective of CMC Company as to marketing aspect is to effectively promote and make PreppyHands Hand Sanitizer available to its target market and to be able to interact with the costumers through advertisements. Product Strategy

Nowadays, many companies have manufactured hand sanitizers for the purpose of killing bacteria on the skin of the hands, and they commonly use alcohol as its active agent. In part of this fact, CMC Company came up with a product which is not only an all-in-one hand sanitizer that is alcoholfree.

PreppyHands Hand Sanitizer is a brand not yet known, but will surely linger in the minds of the ones who tried it and making it trend because of its qualities. PreppyHands Hand Sanitizer is a

CHAPTER 4 TECHNICAL ASPECT Product

Figure 4.1 PreppyHands Hand Sanitizer

PreppyHands Hand Sanitizer is a product that concentrates in personal care, specifically in hygienic means. It is very convenient nature works well in his anti mosquito properties. Because of its ingredients such as Aloe Vera gel, essential oils and CHAPTER 5 FINANCIAL ASPECT Sources of Financing the Project The partners, Belza, Gacot and Miranda will invest three hundred thousand pesos each (P220, 000.00). The initial capital will be used in acquiring the raw materials, equipment, leasing of space, salaries for employees, and other overhead expenses intended for the business.

Financial Assumptions 1. Accounts Payable is equivalent to 20% of actual purchases of raw materials annually. 2. Direct labor daily wage will increase by P13.00 annually. 3. Office personnels daily wage will increase by P13.00 annually. 4. Managers daily wage will increase by P30.00 annually. 5. SSS, Pag-Ibig and PhilHealth contributions are based on its respective tables.

CHAPTER 6 SOCIO-ECONOMIC ASPECT The success of business cannot be only measured on how it profits throughout its lifetime, hence, proclaiming business success has also something to do on how nations economy and social welfare had been benefited. In this chapter the researchers will discuss how realization of CMC Company and manufacturing hand sanitizer with insect repellent can contribute to humanity. Contribution to the Philippine Economy Taxes paid by people were said be as the life line of government, which primarily means that government operations will not be possible if there will be no taxes being paid. This will be the primary concern of the

researchers in terms of CMC Companys contribution to the Philippine economy and government. There were a lot of hand sanitizers available to the market but not all of them are made by natural products and comes with an insect repellent. TABLE OF CONTENTS TITLE PAGE ACKNOWLEDGMENT i ii

TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY Name of the Firm Location Brief Description of the Project Management Study Market Study Technical Study Financial Study Socio-Economic Study Conclusion CHAPTER 1 INTRODUCTION Introduction Project History Background of the Study Scope and Limitation Mission Vision 2 MANAGEMENT ASPECT Objectives

iv X XI

1 2 4 4 5 5

Project Originators Form of Business Ownership Capitalization Organizational Structure Job Specification & Qualification Manpower Requirements Company Policies Daily Minimum Wage Rate Gantt Chart for Management Legal Requirements Generalization 3 MARKETING ASPECT Objectives Product Strategy Subjects of the Study Data Gathering Instrument Data Gathering Procedure Market Survey Result Projected Population Demand Supply Market Gap Market Share

7 7 8 8 9 12 12 18 20 21 27

28 28 29 29 29 30 41 42 43 43 44

Market Strategy Product Strategy Category Price Strategy Place Strategy Promotion Strategy Distribution Channel Packaging and Labeling SWOT Analysis Product Logo Company Logo Generalization 4 TECHNICAL ASPECT Product Manufacturing Process Raw Materials Process Flow Chart Gantt Chart Production Schedule Machinery & Equipments Furniture & Fixtures Other Tools & Equipments Miscellaneous

44 44 45 45 45 46 49 50 51 52 53 54

55 56 56 62 63 65 66 72 76 76

Supplies Repairs & Maintenance Plant Location Plant Layout Utilities Direct labor Requirement Waste Disposal Generalization 5 FINANCIAL ASPECT Sources of Financing the Project Financial Assumption Initial Investment Cost Initial Capital Requirement Schedule of Cost of Sales Projected Income Statement Projected Statement of Financial Position Projected Statement of Cash Flows Projected Statement of Changes in Equity Financial Analysis Analysis of Liquidity Current Ratio Acid-test Ratio Cash Flow liquidity Ratio

77 78 78 79 80 82 82 83

85 86 87 88 92 93 94 95 96

104 104 105

Analysis of Asset Liquidity Accounts Receivable Turnover Average Collection Period Inventory Turnover Average Sale Period Fixed Asset Turnover Total Asset Turnover Analysis of Leverage Debt Ratio Debt to Equity Ratio Operating Efficiency & Profitability Gross Profit Margin Net Profit Margin Cash Flow Margin Return on Investment on Assets Return on Equity Financial Leverage Index Average Rate of Return Payback Period Fixed and Variable Costs Contribution margin & Break-even Point Generalization 110 110 111 111 111 112 112 113 113 114 114 115 116 117 106 107 108 108 109 109

6 SOCIO-ECONOMIC ASPECT Contribution to the Philippine Economy Social Desirability BIBLIOGRAPHY APPENDICES A Schedules B Notes C Articles of Co-Partnership 121 132 135 118 119 120

ACKNOWLEDGMENT The researchers would like to commend the following persons who cordially extended their help in the making of this study. First and foremost to Almighty God, the One who had given the researchers the wisdom, knowledge, ability, good health and guidance throughout the study. To the researchers family and relatives who extended their hands through moral and financial support. The researchers parents served as their inspiration to drive harder in this study. To the researchers adviser, Dr. Robert Y. Co who shared his experiences, knowledge and thoughts with regards to the feasibility study. This study will not be completed if not because of his critics and insights. To the researchers professors who also contributed their knowledge about the study. Their words of encouragement, understanding and patience served as one of the researchers cause for striving harder. Special thanks to Mrs. Belza, Mrs. Hernandez and Mrs. Omar who shared their knowledge and opened their homes to the researchers. To the researchers friends, especially to the whole class of AC3 -01, for spending some time hoping for the best outcome to this study. They all know the pressure and all that the researchers experiences.

This feasibility study surely made the researchers a better person and this will not be possible without the people above mentioned. May the researchers able to extend their deepest gratitude to all people who helped them throughout the study. Thank you so much and may Gods blessings shower upon us all. Charmaine Cristel Jane Maria Teresa

BIBLIOGRAPHY

(2010). 2010 Special Release Census Report - Pasay City.

http://www.managementstudyguide.com/planning_function.htm http://www.managementstudyguide.com/controlling_function.htm http://en.wikipedia.org/wiki/hand_sanitizer#non-alcohol_hand_sanitizers http://www.cleanlink.com/sm/article/ideal-locations-for-hand-sanitizerdispensers--13654 http://entrepreneurs.about.com/od/gettingstarted/a/chooselocation.htm http://www.mb.com.ph/node/250369/phili#.uohrekz4kso http://technology.inquirer.net/8013/more-filipinos-now-using-internet-for-newsinformation-study