CHAPTER 7 Summary of Findings, Conclusions, and Recommendations

This chapter presents the summary findings,

the conclusions

drawn and the recommendations based from the conclucions of this study. Summary of Findings The Marketing Aspect 1. The opportunities which may affect the business in positive manner are the following: Internet, Unique selling proposition, Niche market, Global influences, Potential Buyer, Local abundance of the raw materials, Potential Buyer outside the Philippines. The threats that may affect the business in a negative manner are the following: Competitors, increasing price of raw materials, natural Calamities affecting the supply of raw materials, and the customer loyalty to existing products. 2. The factors that could affect the business operations in the external environment are demographic environment in which it is a provincial area where many business establishments in Bulacan were located; economic environment in which the per capita income and density of business establishments dictate the rate of demand, density of demand and also the purchasing power of the consumers; natural environment in which typhoons affect the operation of the business in a way that raw materials might be

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delivered late; technological environment in which the technology could make the production process faster; political environment in which the governments concern will involve registration, permits, fees, taxes, etc. that are to be accomplished all throughout the existence of the business. 3. The target market for the product will be all the business establishments in Baliuag, Bulacan using shopping bags in their transactions and all other who are interested to try a biodegradable shopping bag made from corn kernels. 4. The product will be beneficial to users. It is biodegradable and will not cause any harm to the environment. It will not add up to all the plastic accumulations in the landfills that will threaten the environment. It is also safe because it does not have any harmful chemical that will affect the health of its user. Businesses establishments that will use the product can also have good reputation because they are helping to protect the environment. 5. The selling price of the product per unit is Php1.37. 6. The distribution channel that will be used by the proponents is indirect selective distribution which involves the distribution of the products using different intermediaries, such as wholesalers and retailers, before reaching the end users of the product. But, the proponents agreed that the possible market can buy products

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directly to the manufacturer. The product will be distributed at the Baliuag, Bulacan. 7. The business will used the following promotional strategies which are: Free online advertising sites, Electronic mails or E-mail, Unique Selling Proposition, and brochures/ leaflets. The Management Aspect 1. Limited partnership is the form of ownership designed by the business proponents. 2. The business is manufacturing in nature that forms mass production in making the biodegradable shopping bags. 3. The Project Schedule of the company: Feasibility Study, Putting of Equity, Registration, Leasing of Plant Site, Canvassing and Acquisition of Equipment, Purchasing of Raw Materials, Hiring and Training of Personnel and Start of Normal Operation. 4. The Business needs a General Manager, Marketing Officer, Production Supervisor, Cashier, Production workers, Delivery Man and Security Guard. All jobs require a legal age and must be a degree holder for the administrative positions. 5. The compensation Scheme of employees covers their salaries and wages, 13th month pay, SSS, Pagibig, and Philhealth. The salaries and wages are based on the latest wage order of DOLE which is 336.00 (Baliuag, Bulacan). The basic hours needed is 192 hours

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per month which is 8 hrs. a day, 6 days per week, and 4 weeks per month. The Technical Aspect 1. The components needed to produce the product are corn kernels, ethylene vinyl acetate, sulfuric acid and water. 2. The raw materials will come from different places, the corn kernels will be from a the farm of Mr. Edgardo Cruz in Angat, Bulacan, the chemicals (Sulfuric acid and EVA) will come directly from the supplier and the water that will be used will come directly from the Water supply of Baliuag Bulacan. 3. The steps in manufacturing the product are: Preparation of Raw Materials, Material blending, Corn Pellet Making, Extrusion, Printing, Plastic Bag Making, Quality control inspection, Packaging, and Storing 4. The machines required for production are the blending machine, pellet mill, 2 in 1 Plastic film blowing extruder and printing machine and plastic bag making machine. 5. The facilities required by the business is a one-storey building located at Doa Remedios Trinidad Highway, Baliuag, Bulcan 6. A worker can produce 43 units of biodegradable shopping bags per minute. In an 8-hour work a day, a worker can produce 20,833 units per day. One year is assumed to have 314 days since the company implements a 6-day work a week. So in one year a worker can

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produce approximately 6,541,562 units. Since there are 6 production workers in the company and each one can produce 6,541,562 units per year, the annual production capacity of the company is 39,249,372. ANNUAL PRODUCTION CAPACITY 20,833 units per day x 314 days in a year x 6 workers= 39,249,372 pieces of biodegradable shopping bags The Financial Aspect 1. The initial working capital is Php1,500,000.00. 2. The total project cost is Php1,154,870.00. 3. The financial statements shows stability over a 5 year operating period because there is a positive return on investments and increasing annual sales. 4. The anticipated return of investment in a year is

Php2,709,408.00. 5. The techniques that the business will use in order to maximize its income are to maintain all its expense lower than the capital and investments and to have extra income by selling unused, rejected and old materials and shopping bags in lower cost. The Socio-Economic Aspect

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1. Offering the product in the market will benefit the community by protecting and preserving their environment having the product customer and environmental friendly at the same time. 2. The firm will be useful to the chosen community by helping preserve and protect the town of Baliuag. This will happen by offering a shopping bag that is biodegradable, durable, safe to use, affordable and environmental-friendly. It will help lessen and eventually wipe out all the plastic wastes that cause dumping and clogging. 3. The contribution that the firm may give to the community is employment and it may also help the farmers for the production of corn and will make Baliuag, Bulacan. 4. The government will benefit from the firm by the accumulation of taxes from the revenue of the enterprise that will also contribute to the budget of the national government which can be used for the town and countrys development. 5. The firm will contribute to the economic status of the Philippines by the attraction it may give to the people and businesses inside and outside the country making it famous on this field that will help the country boost its economy particularly in tourism, trade and industry and so on.

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Conclusions Based on the findings of the feasibility study, the proponents came up with the following conclusions: 1. The proponents conclude that the proposed business of manufacturing of biodegradable shopping bags made from corn kernels is feasible, in terms of its marketing, management, financial and technical aspects. 2. The proponents conclude that it is feasible with regards to marketing aspect because the demand for shopping bags is high. Based on the demand and supply quantum, there is still place for the business to penetrate the market. 3. The proponents conclude that it is feasible when it comes to the management aspects because it showed that the proposed business can be started after 1 year of the project schedule. 4. The proponents conclude that the business is financially stable for the next five years of operation. 5. The proponents conclude that the utilization of the waste plastic will help the country in minimizing the garbage that are dumped on the different places which results to destructions of the earth and might add to the effects of global climate change.

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6. The proponents conclude that the proposed business can be a good benefit not only for the society and also for the economy. Recommendations Based on the conclusions of the study, the following

recommendations are drawn: 1. The proponents recommend this study to the students who might do research related to this one. 2. The proponents recommend this study to the future researchers who will be conducting a related study that this may use this research as one of references. 3. The proponents recommend this study to businessmen who are thinking of pursuing this study to become real and the proponents recommend also that it is always important to have a product that is more on benefits than features. 4. The proponents recommend this study to the people in Baliuag, Bulacan that they may produce and use the biodegradable shopping bags made from corn kernels for their own safety and convenience.