Chapter I

INTRODUCTION

In Today’s Organic Farming, people can grow, develop and become

successful by learning through the experiences of others. Hence, the business
provided an avenue within the Davao City with learning sites to acquire new
learning on the best practices of Organic Farming. More and more farmers are
realizing the importance of having their respective Organic Farms, with it comes to
the rigorous process of following the standards to ensure that what you are doing
is right. In line with this, the proponents are challenged to conduct Feasibility Study
about Organic Farming. However, no study has been undertaken to know the
Organic’s Urban: Leading Health Progressive.

According to the International study of Organic Farming in India, 172

countries covered in the survey by the Research Institute of Organic Agriculture
(FiBL), 87 were having organic standards and another 18 were developing
legislation and 72 countries were using participatory guarantee systems (PGS)
defined as “Locally focused quality assurance system”. Certifying producers based
on the active participation of stakeholders. Globally, an estimated 123 GPS
initiative were established and another 110 under development.

According to “Published in the Proceedings of the National Academy of

Sciences (commonly shortened to PNAS) is the first wide-ranging study to look at
profitability of Organic Farming in the real world. Organic Produced command price
premium that has remained fairly stable that they have been in the market.
Generally around 30% higher than conventional produce. In the Trade Publication
of Local and Organic Food, sustainable food news local as a marketing claim, has
grown by 15% from 2009-2010, and it’s likely that number will increase in the
coming year.

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 Organic’s Urban Leading Health Progressive promote and produce of
vegetables with the specific consumers. This business wanted and dream that the
vegetables they ate is organic and healthy. Organic farming here in Davao City is
few and did not known, so the Organic’s Urban Leading Health Progressive is
promote and help the communities to know the organic vegetables and the benefit
by eating the healthy food.

Organic farming can help the communities to lessen the high demand of
fresh vegetable, based on the research on organic farming which is good on the
environment and will minimize the pollution in the urban area and will extend the
agricultural land. Providing the healthy and fresh food to the community, and
improving the way of quality living.

Name of Business

Figure 1. Business Logo

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Objective of the Study

 Is to determine the viability of a business venture.

 To create the organic farming in the urban area and to provide
healthy and nutritious food in the market.
 Planning to make a new way of farming that helps society to access
the organic way of planting especially in the urban area that is easy
and affordable.

Vision

 A sustainable and secured food crop that promotes the health of humans
and the environment
 To produce the healthy product specially the vegetables
 Promote the organic farming in urban areas
 Helping the environment by preventing the pollution
 To sustain the demand of organic products’

Mission

 Execute the Organic Methods with Excellence

 Build lasting stakeholders relationship
 Creating healthy life style
 Make to provide organic products’ in the region
 To be an ISO certified
 Build a strong relationship with the customer

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We will achieve our mission through:

 Advance understanding about the health and environmental benefits of

Organic Foods.
 Improve the sustainability of Organic Farming Methods.
 Creating the new technique and to continue the best method in organic
farming.
 Make a good relationship both internal and external factors in the business

Goals

 To strengthen and expand organic practices and commodities which reduce

the use of toxic, synthetic chemicals and have clear benefits o human health
and the environment.
 To engage and develop partnership with organic farmers’ food system that
are working to improve and transform the organics business in urban of
Davao City.

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 Chapter ll

MARKET FEASIBILITY

2.1 Products

The “Organic’s Urban Leading Health Progressive” is the organic farming

that sells nutritious vegetables. The business are going produce vegetables in
healthy way, the process of using organic methods in farming all the products that
make it healthy and nutritious. The products price have the same price in the
market, the qualities of the product are higher, and the vegetables is more
nutritious and good for human health.

The product of “Organic’s Urban Leading Health Progressive” is making

their best to promote the healthy foods in every families, to supply good quality
and healthy vegetables. The farm is surely organic and banned the use of
chemicals that is harmful in the body. The business create their own organic
pesticides and fertilizers. Composed soil is fertile, so that the plant will be good,
healthy and nutritious. Some of the product in “Organic’s Urban Leading Health
Progressive” are specify in the following:

5
 Total Kl. Of
Times Of Selling Projected
Products Produce/Yr
Harvest/Yr. Price/Kl Sales/Yr.
.
Pitchay

8 1920 ₱ 30.00 ₱ 57,600.00

Cabbage

4 2400 ₱ 40.00 ₱ 96,000.00

Lettuce

8 2400 ₱ 40.00 ₱ 96,000.00

Chili pepper

8 5760 ₱ 80.00 ₱ 460,800.00

Bell pepper

6 6480 ₱ 120.00 ₱ 777,600.00

Tomato

8 19200 ₱ 30.00 ₱ 576,000.00

Total 42 38,160 Kls. ₱ 340.00 ₱ 2,064,000.00
Table 1. Product and Projected Sales

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2.2 Intended Market Environment

Market Environment

The “Organics’ Urban” is focused to provide healthy vegetables to the

community who live in the city, but we also provided the restaurants and food chain
businesses. Many people are conscious on their health, they buy fruits,
vegetables, and spices in the market, but some of this product used harmful
fertilizers on their farming. The business make highest percentage of organic
fertilizers on their farming to ensure the healthy vegetables can be provided in the
community.

Healthy food is now in demand on the market. Several people are conscious
of what they eat. That is why the “Organics’ Urban Leading Health Progressive”
produce the product that is fit in the need of a healthy being. Organic product is in
the market, but it was not sustain. The demand of the consumer was not sustained
to make it possible they wanted to ensure that the farm can produce the vegetables
when it is needed.

A company’s marketing environment consists of the internal factors &

forces, which affect the company’s ability to develop & maintain successful
transactions & relationships with the company’s target customers. It is concerned
with the influences or variables of the external and internal environment of a firm
that controls the marketing management’s capability to construct and preserve the
flourishing relationships with the consumer.
The marketing environment is comprised of the following two key factors-
 Micro-factors inside the firm;
 Macro-factors linked to economic, social, cultural aspects of the firm

7
Figure 2. Market Environment
.
The “Organics’ Urban : Leading Health Progressive classified the Micro-
environment elements which are close to the firm and incorporate the suppliers,
showcasing delegates, consumer markets, public, and competition and marketing
intermediaries. Microenvironment likewise concerns the inward environment of the
organization and influences marketing as well as all the departments of the
business firm.

The Macro environment is the uncontrollable factor of the company. For this
reason, it has to structure its policies in the limits set by these factors. Macro-
environment on the whole deals with the demographic, economic, technological,
natural, socio-cultural and politico-legal environment aspects of the markets. The
capability of a firm to bond with the customers and in addition, the strength of the
product as a driver of development to the firm. The macro environment consisting
of wider societal authorities, and the micro-environment which incorporates the
influences related to a company, together form the general marketing environment
of a company.

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2.3 Nature of Competition

Competition

The business competition is not just another business that might take
money away from you. It can be another product or service that’s being developed
and which you ought to be selling or looking to license before somebody else takes
it up. DAVAO CITY, Philippines – With markets currently flooded with processed
food, it's important to serve fresh and organic vegetables and herbs to Filipino
families, a farmer from Davao suggested. In Addition, we promote organic farming,
healthy living by eating clean and green and by helping communities in
establishing a livelihood organic sector within the heart City of Davao.

The local government of Davao supports initiatives on organic farming, both

in rural and urban settings, believing that this can help in preserving the
environment – particularly the rich water resources of the city. It was observed that
more people are now interested in urban organic farming because of the harmful
effects of synthetic farm input materials on the human body. In lieu with this, the
business aims to be productive competitors.

The presence of one or more competitors can reduce the prices of goods
and services as the companies attempt to gain a larger market share. Competition
also requires the business to become more efficient in order to reduce costs. It
needs to respond and make some changes. It could be anything from improving
customer service, assessing your prices and updating your products, to changing
the way you market yourself, redesigning your literature and website and changing
your suppliers.

The business advantage has the leverage that a business has over its
competitors. This can be gained by offering clients better and greater value. The
best way to advertising products or services with lower prices or higher quality that
interest consumers. Target markets recognize these unique products or services.
This is the reason behind brand loyalty, or why customers prefer one particular

9
product or service over another. It provides the understanding that resources held
by a firm and the business strategy will have a profound impact on generating
competitive advantage

The Competitors are Eden Nature Park, Davao City. Located at Matina
Town Square, Mac Arthur Highway, Matina, Davao City, 8000 Davao Del Sur.

Figure 3. Eden Nature Park

The Eden Nature Park farm provides you a time of your life when you visit
Eden, where for can make sure that every bit of a chance in Organic farming.

Figure 4. Wynward Garden Bistro

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 The Wynward Garden Bistro, Davao City located at Poblacion District,
Davao City, Davao Del Sur Philippines. At Wynward, people will experienced the
serenity of nature – right at the heart of downtown Davao.

Organic’s Urban Leading Health Progressive promote organic farming,

healthy living by eating clean, green and by helping communities in establishing a
livelihood in organic sector within the Davao City and by applying different
techniques in competing.

Figure 5. Business Logo

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2.4 Industry
Although the business organic producer’s industry is growing dramatically,
little is known about market structure. We estimate a system of reduced-form
equations to evaluate supply and demand factors that influence equilibrium farm
price and quantity in wholesale markets for organic vegetable. In the long run,
demand factors dominate supply factors. Reduced wholesaling costs, increased
margins by which organic wholesale price exceeds non-organic price, and higher
consumer income stimulate both farm price and output. Increasing the non-organic
farm price decreases equilibrium quantity of organics. Market expansion strategies
should target consumers and wholesalers. (https://doi.org/10.2307/1243282)

 Demand

The expected negative correlation between the price premium and sales
was seen with sales growth percentage over time. However, once deflated, a
positive relationship ensued. There are possible explanations. Firstly, the
consumers of organic products tend to be high income, and thus increasing prices
take a smaller percentage of household income if the household is wealthy; thus,
they are insensitive to small price increases. Secondly, food as a percentage of
overall household expenditure has decreased dramatically, causing the same
insensitivity. Thirdly, consumers of organic products purchase for reasons other
than price, such as health, environmental concerns, and ethics.

(http://repository.upenn.edu/cgi/viewcontent.cgi?article=1000&context=spur)

 Supply

The regression of Organic Total Acreage by the Price Premium reveals the
expected positive correlation: as the price premium increases, organic total
acreage will increase. The other factors appear to influence farmers in their
transition from conventional to organic production. Another possible explanation
for the insignificance is that the prices in the data are not high enough to elicit a
significant amount of farmers to convert. Due to such overwhelming costs, farmers
need a high organic premium to overcome the insecurities inherent in organic

12
farming. Additional factors affecting supply could include the farm input prices such
as labor and fertilizer. (http://repository.upenn.edu/cgi/viewcontent.cgi?article=1000&context=spur)

 Regulations
The Enterprise regulations have therefore been introduced to ensure the
authenticity of Organic Farming methods, which have evolved into a
comprehensive framework for the organic production of crops, and for labelling,
processing and marketing of organic products

 Cultural Change

The business “Organics’ Urban : Leading Health Progressive cultural have

come together through various social movements, including those advocating
social, environmental protection, holistic health of Organics’ food. These issue of
cultural change are merging into a common movement to building a more healthy
and sustainable society to the quick, cheap foods of today.

The business is a standard classification of economic activities arranged so

that entities can be classified according to the activity to carry out the flow of the
business. The enterprise labor union is an organization of workers who have
banded together to achieve common goals in key areas such as wages, hours,
and other working conditions. The union, through its leadership, bargains with the
employer on behalf of union members and negotiates labor contracts with
employers.

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Figure 6. Location of the Business

The business industry in which the business operates, include the outlook
and size which is 1000 sq.m The proponents decided to plant the industry located
at Tugbok District due of fresh and clean environment.

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2.5 Marketing Sales Strategy

Strategic Partnership of the Enterprise

Marketing is the process by which companies create value for customers

and build strong customer relationships in order to capture value from customers
in return.

The Marketing process:

• Understand the marketplace and customer needs and wants.

• Design a customer-driven marketing strategy.

• Construct an integrated marketing program that delivers superior value.

• Build profitable relationships and create customer delight.

• Capture value from customers to create profits and customer equity.

Marketing offers some combination of products, services, information, or

experiences offered to a market to satisfy a need or want.

 Providing market research to support pricing decisions and new market

entries.
 Setting up the success metrics and the results of reporting timelines.

Exchange the act of obtaining a desired object from someone by offering

something in return. Customer relationship management is the overall process of
building and maintaining profitable customer relationships by delivering superior
customer value and satisfaction.

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Through website:

Distribution Intermediaries

Figure 7. Business Facebook Page

 Wholesale
The business welcome the buyers/consumer to buys large quantities of the
products with discount.

 Retail
A business retailer might have global suppliers and customers. The
retailer's goods may come from abroad, or components of those goods may be
produced or assembled abroad. The firm that make products sells products directly
to consumer and end user. As they are selling to consumer for personal use, the
goods are usually sold in small quantities.

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The production of the business and the projection are elaborated on the table:

Product Pcs. Kl. Time Time Total kl. Selling Projected

of of of of price/kl sales/yr.
plant harvest harvest produce
/mo. /yr. /yr.

Petchay 1200 0.2 1 8 1920 ₱ 30.00 ₱ 57,600.00

Cabbage 1200 0.5 1 4 2400 ₱ 40.00 ₱ 96,000.00

Lettuce 1200 0.25 1 8 2400 ₱ 40.00 ₱ 96,000.00

Chili Pepper 1200 0.2 3 8 5760 ₱ 80.00 ₱ 460,800.00

Bell
Pepper 1200 0.3 3 6 6480 ₱120.00 ₱ 777,600.00

Tomato 1200 0.5 4 8 19200 ₱ 30.00 ₱ 576,000.00

Total
Sales ₱2,064,000.00
Table 2. Production

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 Chapter lll

PRODUCTION/TECHNICAL FEASIBILITY

3.1 Production Operating Requirements

Production/Operating Requirements

 Location of the Plant site

Figure 8. Business Location

The proposed business plant site will be located at Barangay, Tugbok

Distict, Davao City, Philippines. A 1000 square meter will be developed for the
proposed project. Approximately 7.5 kilometer form Tugbok Highway with 3 meter
access road. It is an investment potential and tranquil place. Property is suitable
for retirement and accessible in terms of transportation and well convenient to the
buyer’s/customers.

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  Business Permit

Note: Here are the Process in Securing the Business Permit of the Company

Figure 9. Step of Business Permit

The Organic's Urban Leading Health Progressive business partnership

would want to make sure that the business can be as successful as it can. One of
the first things to do to ensure the health and protection of the said business is
securing a business license.

One of the reasons why the business is so important to have a business

license is to ensure that the financial health of the young company is in good
standing. Vendors, contractors and most importantly the state and local
governments need to know that the business is legitimate. By having a business
license it tells the community that the business is seriousl. Additionally, having a
license allows the partnership of the business to file for a yearly tax return
supporting the legitimacy of the business.

Another reason to secure a business license is, the business will be

protected in the event that business will be under legal scrutiny. Hopefully this is
something that all businesses get to avoid, however if it were to happen it would

19
want the license to offer protection to show a separation of personal assets. Thus,
if the business will avoid getting a business license there could be a fine from any
forms of government that may operate the business in.

The ‘Organics’ Urban : Leading Health Progressive business in terms of

production requirements is the process of organizing the production process so
that all the various components parts are organized in a structured way. The
Organic’s Urban Leading Health Progressive operates 1 weeks or 7 days.

The table below shows the Production Schedule of Organics’ Urban: Leading
Health Progressive that are usually created with numbers written in to show the
quantities of the various resources that are required at a particular times.

Regular Time Schedule

Monday - Saturday

Time of Schedules Days Of work

Work
Manager 8 8:00 am - 5:00 pm 6
Employees 8 8:00 am - 5:00 pm 6
Farmers 8 5:00 am -1:00 pm 6
8:00 am - 5:00 pm
Table 3. Regular Time Schedule

 Waste Disposal

The business belongs to the food industry that is why have perishable items
that can contaminate other ingredients needed in a making or producing healthy
vegetables. We will be using garbage plastic bins and garbage bins to place or
trash. The location of the business is located within the City of Davao with a strict
regulations on ways segregation, the business will promptly to follow. The business
production will disposed its trash every night during in the recommended time of
disposal.

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The proposed will acquire the following process of:

1. Delivery of the Final Product

Set your customer’s expectations realistically the ordering phases of the

process, never lies to the customer. The package will require extra time to reach
the customer, you communicate with the customer. The customer will appreciate
the honesty and will not call you early demanding delivery. The business will
ensure the on-time delivery of the package by letting the customer know what “on-
time” means to the company.

2. Time the Delivery

Figure 10. Delivery Confirmation Order

The business need to check on the time it takes for the product to reach the
customer. The business start timing the delivery from time of purchase to find
discrepancies or slow moving parts of your organization. After leaves the
warehouse, the company monitor its movement to delivers fastest.

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 3. Report the process

Figure 11. Ordering Process

Keep reports of the process from purchase to the time the product is in the
customer’s hand. If you are using a new shipping company, ask for feedback from
the customer. Perhaps a slower company delivers product intact more often than
a faster company. You will want all of this on your reports. You will need to note
discrepancies and areas where you want to streamline the process to deliver
product to customer’s on-time on a consistent basis.

Particular Location Condition Capacity

Land and Tugbok District Wide 1000 sq. m

Building

Table 4. Particular Area

The business space is being owned. Filipino citizens and corporations or

partnerships with least 60% of the shares are owned by “Organics’ Urban: Leading
Health Progressive” is entitled to own or acquire land in the Philippines buildings,
and enter into a long term land lease.

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3.2 Materials and Supplies

Raw Materials Unit Pcs Cost Total Cost

Seedlings pack 6 ₱ 380.00 ₱ 2,280.00
Organic Fertilizer sack 3 ₱ 900.00 ₱ 2,700.00
Organic Pesticide bottle 3 ₱ 153.00 ₱ 459.00
Net meter 50 ₱ 60.00 ₱ 3,000.00

Supplies Price/Pc Quantity Total Cost

Propagation ₱482.20/72 cells per
Container sheets 10 sheets ₱ 4,822.00
Trash bags or Bin
bag ₱ 218.50/ 25 pcs. 1roll 10 roll ₱ 2,185.00
Bamboo
₱ 50.00/tree 100 tree ₱ 5,000.00

Cost Qty.
Office Supplies ₱ 12,000.00
Dust Pan 60 2 ₱ 120.00
Broom Stick 15 3 ₱ 45.00
Table 5. Raw Materials and Total Cost

The supplies of the business will be purchased from different supplier inside
and outside Davao City like Organic Fertilizer and pesticide. Plantmate is the
company that produced organic fertilizer and Condor Seeds is the company that
provide and produce vegetable seed. This two company are the suppliers of
organic fertilizer and seeds and the other supplies that will be purchased Davao
City.

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3.3 Machinery and Equipment

Organic Farming Technology

The business refers to the capacity of agriculture over time to contribute to

overall welfare by providing sufficient food and other goods and services in ways
that are economically efficient and profitable, socially responsible, while also
improving environmental quality. It is a concept that can have different implications
in terms of appropriate technologies whether it is viewed at the farm level, at the
food sector level, or in the context of the overall domestic or global economy.

A Soil is enriched by using compost, organic fertilizers, produced by

fermenting various organic materials. Soil conditions are improved by using
earthworms and microorganisms which decompose organic materials. Improved
soil helps crops grow healthy and sturdy.

Materials for soil enrichment are produced by composting locally available

materials such as household food wastes, animal wastes, plant residues (dead
twigs and fallen leaves), weeds, dead insects, and small fish not for human
consumption, crop residues, etc. Combined planting of different types of crops is
practiced in the form of crop rotation and mixed planting. Combination of
gramineous and leguminous crops is particularly effective in soil enrichment and
creating environments to minimize pest and disease damages.

Technological change has been the major driving force for increasing
agricultural productivity and promoting agriculture development. In the past, the
choice of technologies and their adoption was to increase production, productivity
and farm incomes. Over many decades, policies for agriculture, trade, research
and development, education, training and advice have been strong influences on
the choice of technology, the level of agricultural production and farm practices.

24
 The business technology is becoming more integrated in the ago-food chain
and the global market, while environmental, food safety and quality, and animal
welfare regulations are also increasingly impacting on the sector. It is faced with
new challenges to meet growing demands for food, to be internationally
competitive and to produce agricultural products of high quality.
At the same time, it must meet sustainability goals in the context of on-going
agricultural policy reform, further trade liberalization and the implementation of
multilateral environmental agreements as agreed.

According to Adoption of Technologies for Sustainable Farming Systems,

today farmers, advisors and policy makers are faced with complex choices. They
are faced with a wide range of technologies that are either available or under
development; they must deal with the uncertainties of both the effects these new
technologies will have throughout the Agri-food chain and the impact that a whole
range of policies will have on the sustainability of farming systems. In addition,
there is increasing pressure on agricultural research and advisory budgets that
must be accommodated.

 Equipment’s needed

The business equipment is expensive. But, often it can pay for itself quickly
to get the right piece. Organic Farm need not be any different from the equipment
used on conventional farms, to take a more sustainable approach to selecting
equipment for fields. Also, the proponents will acquire the following Production
Equipment’s in table A below:

25
 Farm Equipment’s Price/Pc Quantity Cost Life Span

₱ 180.00 5 pcs ₱ 900.00 2 yrs.

A Spade

₱2,500.00 2 pcs ₱ 5,000.00 3 yrs.

Wheelbarrow

₱3,000.00 3 bins ₱ 9,000.00 3yrs.

Compost Bin

₱ 200.00 20 pcs ₱ 4,000.00 5 yrs.

Crates

₱1,000.00 10 pcs ₱ 10,000.00 5 yrs.

Rain Collection Barrel

Garbage Bin ₱ 380.00 5 pcs. ₱ 1,900.00 5 yrs.

Total Cost ₱30,800.00

Table 6. Farm Equipment’s

Note: The unit costs of our Farm Equipment are estimated.

26
Farm Equipment

1. Propagation Containers

Figure 12. Propagation Container

The weather conditions in some planting zones render it advisable to start

seeds indoors rather than sowing directly into the ground, It is also called cell
trays and seed starter pots, give vegetable gardeners the ability that begin the
growing process while waiting for. Pots made from plastic and pots made from
peat work equally well in growing seeds; however, gardeners can plant the
seedlings in peat pots directly into the ground.
Start the seeds in small pots of approximately 1 ¼ inches, and transplant
to containers 2 ¼ inches across and 3 ¼ inches deep once roots have grown but
before the seedlings become root bound. Avoid the temptation to eliminate
transplanting to progressively larger sizes; planting seeds in containers too large
results in plants dying from too much water retention in the soil, and keeping
sprouted seeds in containers too small restricts growth, which also kills the
plants.

27
 2. Garbage Bins

Garbage Bins or Trash Can is used for the proper disposal of waste,
gardeners used the tools to clean the garden and segregate the wastes. The
garbage is separated into 2 components: the biodegradable and non-
biodegradable.

3. A Spade
Spades come in a variety of sizes
and shapes top form different tasks,
but the most suitable spade depends
on the individual gardener's
preference and upper body strength.
Figure 13. Spade Look for a bowl large enough to
transfer quantities of soil from
wheelbarrows to the garden, sturdy enough to dig holes for larger plants, and
weight appropriate to the gardener's strength. Gardener’s use spades to turn
soil in small gardens dig up stubborn weeds, and transfer soil, compost, and
other enhancers to the garden.

4. Wheelbarrow
Starting a vegetable garden
requires a means of conveying soil,
compost, clippings, and yard waste to
the garden or the compost bin. From
wheelbarrows with one, two, or three
wheels or wagons with four wheels,
gardeners must consider their own
agility and height as well as the type of
Figure14. Wheelbarrow
work this tool will perform.
28
 A wheelbarrow's stability increases with the number of wheels that remain
on the ground; therefore, gardeners who find wheelbarrows with one or two
wheels difficult to balance prefer those with three wheels. Four-wheel wagons
are easiest to move and are a good choice for gardeners whose height makes
it hard to lift wheelbarrows fully.

5. Compost Bin

Compost adds essential

nutrients to soil, and
vegetables need rich soil for
maximum growth potential.
Use a composter to turn
everyday organic waste into
this garden additive. To start
a vegetable garden,
Figure 15. Compost Bin gardeners can choose from
three types of composters: the tumbler bin, the stationary bin, and the worm bin.
Tumbler Bin: Place lawn debris and organic kitchen waste into the bin and
spin daily. Tumblers create compost fairly quickly; often, compost is ready for
the garden within 21 days. This type of composter, which is portable, closed,
and above ground, resists bugs and scavenging animals.
Stationary Bin: These composters lack portability, but the size range allows the
generation of large amounts of compost. The increased compost production may
take longer than tumbler bins but makes this an ideal choice for large gardens.

29
6. Crates

Gardeners use any

crates that appeals for
harvest. Any size and shape
works to carry a garden's
bounty into the home.
Undeniably, crates carry
more fruit than do arms, but
Figure 16. Crates
the crates have a use prior to
harvest time: The tool easily totes the numerous small items, such as hand tools
and seed packets, needed to start a vegetable garden, also in storage and
handling the product.

7. Rain Collection Barrel

Figure 17. Barrels

Collect water for a vegetable garden with a rain barrel. Harvesting rain
gives an inexpensive alternative to using treated water from the home, and it
eliminates watering plants with a home's chlorinated water. Purchase a rain barrel
appropriate to the size of your garden: 50 gallons for small gardens or 100 gallons
for medium and large gardens.

30
 Office Equipment Price/pc Qty. Cost per Item Life Span
Computer ₱ 25,000.00 1 ₱ 25,000.00 5 yrs.

Printer ₱ 5,000.00 1 ₱ 5,000.00 5 yrs.

Total ₱ 30,000.00

Furniture and Fixtures

Chairs ₱ 300.00 6 ₱ 1,800.00 5 yrs.

Office tables ₱ 1,000.00 12 ₱ 12,000.00 5 yrs.

Cabinet ₱ 1,500.00 2 ₱ 3,000.00 5 yrs.
Total ₱ 16,800.00

Multi-cab ₱ 150,000.00 1 ₱ 150,000.00 5 yrs.

Table 7. Office Equipment’s

Note: The unit costs per items are just estimated.

The business used the basic equipment for starting to minimize the
expenses, so that the office and store will have an equipment to be used for the
operation of the company. Also the business have a multi-cab for the delivery of
the product to the whole consumer’s.

31
Physical Plant and Manpower

Production Layout for Office, Store, Storage Room, Stock Room and Garden at
Tugbok Proper, Davao City.

Figure 18. Production Layout

The lot area of 1000 sq. meters will be used for planting sites, also the office,
store, stock room, storage room and garden site. The business rent this lot to
operate the organic farming and business store to sale the product into the target
consumers’. The Organic’s Urban Leading Health Progressive will rent the land for
five (5) years for the operation of the business.

Regular Time Schedule

Monday - Saturday

Position Time of Schedules Days Of work

Work
Manager 8 8:00 am - 5:00 pm 6
Employees 8 8:00 am - 5:00 pm 6
Farmers 8 5:00 am -1:00 pm 6
8:00 am - 5:00 pm
Table 8. Regular Time Schedule.

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3.4 Regulation/Environmental Issues

Regulation/Environmental Issues

The Organic’s Urban: Leading Health Progressive environmental problems

is certain beyond a reasonable doubt, however, the problem of human-caused
climate change is real, serious, and immediate, and this problem poses significant
risks to our society nowadays and ability to thrive and built a better future to Urban
security, to human health and food production. The business discovered major
current environmental issues that may include;

 Climate change
 Pollution (air, water and soil)
 Overpopulation
 Environmental distraction and
 Resource depletion

The business conservation movement lobbies for protection of any

ecologically valuable natural areas, genetically modified foods. Environmental
Issues of pollution is usually the introduction of harmful pollutants into the
environment. Environmental problems are problems that occur in the environment
within the Urban of Davao City.

The Climate Changes and natural disasters are problems that the enterprise
faced constantly. One of the greatest issues that the company will be facing in the
environment today is pollution. This is Pollution of the air, water and soil. It takes
millions of years to make this right. The number one Pollutants within the City of
Davao especially in the production location is motor vehicle exhaust. Air Pollution
is caused by the gases and toxins.

With all of this, comes the problem of waste disposal. The Environmental is
currently facing a major problem about how to dispose waste produced by the
pollution. This threatens the well-being of humans and it is a problem that needs
urgent attention. There are many environmental problems facing the society today,
it does not require close attention to realize that these environmental problems are

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caused by humans. In fact, business do their part in coming up with a solution on
how to solve these environmental issues.

Overpopulation is another environmental problem facing the business

today. The increase in the population leads to food and water shortages. It also
leads to the shortages of natural resources. This is a crucial environmental
problem that has to be addressed as soon as possible.

From a health & safety standpoint, it involves creating organized efforts and
procedures for identifying workplace hazards and reducing accidents and
exposure to harmful situations and substances. It also includes training of
personnel in accident prevention, accident response, emergency preparedness,
and use of protective clothing and equipment.

From an environmental standpoint, it involves creating a systematic

approach to complying with environmental regulations, such as managing waste
or air emissions all the way to helping sites reduce the company. In the workplace,
the responsibilities for designing and implementing appropriate procedures is often
assigned to a specific department of the entire business which is responsible for
environmental protection, occupational health and safety at work.

The management has two general objectives: prevention of incidents or

accidents that might result from abnormal operating conditions and reduction of
adverse effects that resulted from normal operating conditions.

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 Chapter lV

MANAGEMENT FEASIBILITY

The Management Aspect of Organic’s Urban Leading is composed of

proposed techniques and strategies that will be used for improvement of its
employees. This can be done through proper hiring and training of workers. Every
employees have their specific duties and responsibilities in building up business.
Employees under the Organic’s Urban Leading Health Progressive will be trained
properly even before the business starts.

4.1 Business Model

The “Organics’ Urban” business model is the way in which a company

generates revenues and makes a profit from business operations. The business
analysts use the metric gross profit as a way by the company the efficiency and
effectiveness of a firm’s farming business model, including its purpose which is to
formulate and demonstrate healthy gardening activities in Urban of Davao City.

A business model is the way in which a company generates revenue and

makes a profit from company operations. Analysts use the metric gross profit as a
way to compare the efficiency and effectiveness of a firm's business model. Gross
profit is calculated by subtracting the cost of goods sold from revenues. The two
primary levels of a company's business model are pricing and costs. A company
can raise prices and it can find inventory at reduced costs. Both actions increase
gross profit. Gross profit is often considered the first line of profitability because it
only considers costs, not expenses. It focuses strictly on the way in which a
company does business, not the efficiency of management. Investors that focus
on business models are leaving room for an ineffective management team. They
believe the best business models can run themselves.

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How to Generate Revenue

 Sell the product

The “Organics’ Urban”: Leading Health Progressive sell the product directly
within the farm and every designated buyer’s area such as the small eatery
along the business location, restaurants and others. To sell the healthy
products of the business, it uses the vehicle and trucks to deliver in order to
sell.

 Retail Selling
In this business, it emphasizes retail selling. The consumer’s will take and
do the order in minimum price/sales.

Figure 19. Revenue Cycle

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4.2 Form of Ownership

The Organic’s Urban Leading Health Progressive is a form of partnership.

The two proponent have a working capital of One million pesos (₱ 1,000,000.00)
to start the business.

4.3 Organizational Chart

Figure 20. Organizational Chart

The organizational chart show the function and the flow of the responsibility
of its worker in the business, the manager has a control and balance of the
employee inside the company. The farmer is working into the farm that care and
manage the plant. The office worker have a work to cater the customer, all office
work and help the manager. The employees is the one who take and carry the
product from farm to store and to the customers.

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4.4 Officers and Key Personnel

Management and Personnel Requirements

The manager of the business includes the function of employment,

development and compensation, an extension to general management. It is
concerned with promoting and stimulating competent work force to make their
fullest contribution to the concern. It tries to help and motivates the employees
through its effective incentive plans so that the employees provide fullest co-
operation. As a manager of the company they should have an experience in
Manpower Planning, Recruitment, Selection, Training and Development, also in
Agriculture management.

Farming made the main function in the business, one of the asset that give
the skills and knowledge in business. The expertise of the farmer and his
experienced in agriculture is important. Planting, maintaining and harvesting is the
main function of the farmers, and will ensure the land, soil, and irrigation for plant
are good enough so that the plant can produce more crop and can harvest more.

The worker of the company is composed of the driver, cashier, and store
crew that collaborate their task to do the job. The employees of the business is the
frontline of the company that will assess and entertain the costumers.

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 The Skills, Qualification and salaries of the personnel’s are shown in the
table below;

SKILLS QUALIFICATIONS SALARIES

Manager  Management  College

Skills Graduate
 Farming Skills  Have
 Marketing Skills experience
 Leadership skill  Physically Fit

₱20,000/mo.
Five (5)  Planting skills  High School
Farmers  Agricultural level,
Management graduate
 Physically fit

₱8,242/mo.
Four (4)  Have Ability to  High School
Employees: work in a team Graduate or
 Cashier  Communication College level
 Driver skills  Computer
 Store  Technical literate
crew knowledge  Physically fit
related to the
job

₱8,242/mon
Table 9. Personnel’s Schedule

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 Salary of the Employees

Name H Wages/ Monthly Monthly Total Annual Salary

Qty.
r Day Salary/ Salary
s Employee
.

Manager 1 8 ₱666.67 ₱20,000.00 ₱20,000.00 ₱240,000.00

Employee 4 8 ₱274.73 ₱8,242.00 ₱32,968.00 ₱395,616.00

Farmers 5 8 ₱274.73 ₱8,242.00 ₱41,210.00 ₱494,520.00

Total ₱1,130,166.00

Table 10. Personnel’s Salaries

Regular Time Schedule

Monday - Saturday

Positions Time of Work Schedules Days Of

work
Manager 8 8:00 am - 5:00 pm 6
Employees 8 8:00 am - 5:00 pm 6
Farmers 5:00 am -1:00 pm
8 8:00 am - 5:00 pm 6

Table 11. Projected Schedule of Operations

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4.5 Project Schedule

The project schedule is the scheduling of proponents development of

activities, as well as the schedule for materials and expenses outlay.

Task Name Duration 1 2 3 4 5 6 7 8 9 10 11 12

M M M M M M M M M M M M
Preparation 1 Month
Specification 1 Month
Architecture 1 Month
Detail Design 1 Month
Development 8 Month
And
Construction
Test Plan 1 Month
Testing 1 Month
Documentation 2 Month
Dry Run 1 Month
Finalizing 1 Month
Human 1 Month
Resourcing
Crowd
Sourcing
Pre-Opening 1 Month
Actual 1 Month
Operation
Opening 1 Month
Table 12. Schedule of Activities

Legend:

Marketing Team

Planning Team

Development Team

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4.6 Intellectual Property Rights

Trademark

Figure 21. Business Logo

The Organic’s Urban: Leading Health Progressive is a business in which

they promote the sustainable health and productivity of the ecosystem---soil,
plants, animals and people. Organics Foods are farmed in an environmental
sustainable and socially responsible way, focusing on soil generation, water
conservation and animal welfare. The work to reduce hunger, increase organic
farming production, improve urban people’s lives and conserve biodiversity using
an innovative landscape approach. The business carry goods to a place and giving
up one thing in return for another considered more desirable for the consumer.

The business name which is Organics Urban Leading Health Progressive

is a business name or distinctive device warranting goods for sale as the
production of any individual or firm.

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 The Logo of the enterprise is a unique in all among the competitors in the
City of Davao. The logo emphasizes the true meaning of Organic Farming inside
the Urban in Davao due to the works in harmony with nature which took care of
people. It is to lead the Health practices in consuming the nutritious products
through progression results. To make the business secure in term of legal methods
to register. Organic’s Urban create the logo so that the business will be known in
the market that emphasized healthy living.

The Purposes of Business Trademark are as follows;

 To ensure that the business trademark performs its part with wider agendas
including social, environmental and community involvement.

 Participate in the Promotion of good action and healthy environment

 Ancestry Business within the City of Davao.

 The Business will be acknowledge in the market.

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4.7 Critical Risk Factors

Organic’s Urban Leading Health Progressive use a SWOT Analysis to

determine the critical risk factor of the business, a study was conducted to
investigate the prospects of organic agriculture, particularly the SWOT (strength,
weakness, opportunity, and threat) aspect. Organic farming in urban is a
sustainable approach to food production as it includes all agricultural systems that
promote the environmentally, socially, and economically sound production of food.

 Strength

The strengths of Organic’s Urban align and blend well with the
developmental policy objective of organic farming in urban. A strong policy and
local support for organic farming in urban is advocated by local government. About
same proportion also in agreement with strength of organic farming is being similar
to traditional farming but in organic it is safe, healthy and helpful for the people for
their healthy life. Organic farming is compatible with in the local farming knowledge
but organic farming in urban area cannot sustain in the national but in local they
can produce, less the number of hunger and malnutrition.
In addition of strength;
The one and only organic farming that promote the urban gardening in Davao
City. It provided the affordable organic product priced by competing the price in the
market. Also a friendly and helping the environment by the used of organic
substance on farming.

 Weakness
The location itself is prone in pollution, it is lack of participatory activity because
it’s not known. Lack of spaces, and because the location is in the urban and hard
to expand. The business have no reputation yet, on promoting urban farming. The
production of vegetable are seasonal and the product is can easily decomposed.

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  Opportunity

Organic farming in urban area is an advantage, because the target market

are near. The consumers of the product can easily go to market than the rural
farming. Organics Farming has an opportunity to promote healthy lifestyle and
sustainable use of resources. While organic farming might appeal to most Filipinos
whose consciousness for better health is growing, Organic farming will provide
opportunity to boost sustainable use of natural resources and curb dependence on
food and input imports. Opportunities are likely to lower dependence on food and
input imported products are expected to promote food sufficiency.

 Threats

 Climate Change unpredictability of weather and increasing problems due

to the calamities that can lead to a decreasing of harvest in vegetable and
spices

 Increasing incidences of pests and diseases and decline in sources of

organic manure could be the biggest threats in organic farming.

 Pest attack and disease outbreaks are important constraints, which

continue as a constant challenge for both organic and conventional farming.

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