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 demands for photocopying services and merchandising services
respectively are not met by the existing businesses.
The proposed business aims to get hold the demands of the students and
faculty of the different schools located in the vicinity of the business’ proposed
location namely: Holy Cross College of Calinan; Calinan National High
School; Lt. Cipriano Villafuerte Sr. Elementary School; and Calinan Central
Elementary School.
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• This study also aims to merchandise office and school supplies and
to offer photocopying services that the targeted customers would like
to avail.
The main focus of this project study is the feasibility of the proposed
Multipurpose Cooperative in Calinan, Davao City. Like most business
proposals, feasibility criteria have major aspects that need to be considered in
arriving at final conclusions and recommendations. The aspects that need to
be factored into this study are divided into project summary, marketing,
organization and management; the technical, financial, socio- economic
aspects, and legal aspects.
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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 of Calinan Administration in determining the viability
of establishing its Student Multipurpose Cooperative in Calinan.
D. METHODOLOGY
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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.
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Moreover, these are the considered factors which affect the choice of
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.
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and shall create an atmosphere that is conducive to the growth and
development of these cooperatives.
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 ar ar ar ar ar ar ar ar ar ar
1 2 3 4 5 6 7 8 9 10
Inauguration / Opening of
X
Business
Store Expansion X
Additional manpower (2
X X
personnel)
E. FEASIBILITY CRITERIA
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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.
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,
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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.
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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.
v. Investment Cost
To make the project operational the required funds should
amount to Php 188,700.
G. MAJOR ASSUMPTIONS
vi. Market Feasibility
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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.
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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.
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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
A. SERVICE DESCRIPTION
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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.
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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).
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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
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employ extensive and intensive marketing strategies to cope with the stiff
competition.
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):
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0.75
Legal 0.75
3. Reduced Copy Letter & Legal 2.00
4. Enlarged Copy Letter 1.50 per size
adjustment
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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.
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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.
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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.
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
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In photocopying services the cooperative will use substance 20 bond
papers with sizes – 8X11’(letter) and 8X13’(legal).
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Assorted in color
Ball Pen Assorted brands and colors
Pencil Assorted brands and numbers
Fasteners Assorted color
CompositionNotebook Assorted leaves
Writing Notebook Assorted Leaves
Big Notebook Assorted Leaves
Thumbtacks
Glue Assorted brands and volume
Paste
Folder Long & Short – Brown
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B.
MACHINERIES AND
EQUIPMENTS
The following are the machineries and equipments that the cooperative is
going to acquire:
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Stand Fan Computer Set Photocopy
Machine
Standard Capacity of each Photocopying Machines and the Desired
Maximum Capacity
Desired Maximum
Machineries Standard Capacity
Capacity
Expected to last for
Expected to last for 10
15 years
Photocopying Machine years
Paper Capacity
1 Paper Capacity 2,500
3,000 sheets
sheets Maximum
Maximum
Expected to last for
Expected to last for 10
15 years
Photocopying Machine years
Paper Capacity
2 Paper Capacity 2,500
3,000 sheets
sheets Maximum
Maximum
Expected to last for 5
Computer Set 10 years
years
Expected to last for 3
Stand Fans 5 years
years
Proposed Store Site
C. COOPERATIVE’S LOCATION
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VIEW A
Holy Cross College of
Calinan
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VIEW B
D. STORE LAYOUT
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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
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
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.”
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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.
"(3) Unless already fixed in the bylaws, the compensation of all other
employee shall be determined by the board of directors.
-n
Original Amount Borrowed = R 1- (1+i)
i
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B. TOTAL PROJECT COST
The table shows the projected project costs:
Fixed Assets:
Quantity Item Unit Price Total
2 Photocopying Php 40,000 Php 80,000
machines
1 Computer Set 35,000 35,000
2 Electric Fan (Stand 2,000 4,000
Fan)
Furniture and Fixtures 13,700
TOTAL FIXED ASSETS Php 32,700
Current Assets:
Quantity Item Unit Price Total
Cash On Hand 15,000
Supplies Inventory 30,000
Office Supplies 5,000
Pre-paid rent (2 3,000 6,000
months)
TOTAL CURRENT ASSETS Php 56,000
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The sources of funds include the paid-in capital of the corporators and the
members of the proposed cooperative, donated capital from HCCC College
Alumni – Business Department, and borrowings from lending institution.
D. FINANCIAL STATEMENTS
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