Grin Corporation

Date of Publication

1999

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Business Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Abstract/Summary

Executive Summary. GRIN Corporation produces decorative mugs. Decorative mugs are mugs used for drinking or for displays that come in different styles. The corporation uses decals to ensure its customers maximum satisfaction from the mug's outlook appearance (its colorful designs). The mug's durability is also a plus factor for the consumers to make a purchase. The rationale behind the product name is that it emphasizes the designs that can be personalized. Whereas, with the competitors already existing in the market, they provide ready-made designs, which limits the choice of the consumers based on their preferences over designs.

In forming a corporation, there was a necessity for the incorporators to invest Php3000 each, thus forming a total capitalization of Php30000 (ten incorporators).

The proponents guaranteed that the production process of the decorative mugs would ensure 100% efficiency. Therefore, no amount of time will be wasted, but instead be contributed upon to produce at maximum output. The proponents also made sure that there would be enough materials and supplies available for the production. The corporation has for its direct materials: mugs and decals. The cost per unit of production and break-even computation were also used and shown. Results show that after producing 25 units per month, break-even will be achieved. It's favorable, as far as profits are concerned, to produce the desired units of 129. The motivation comes particularly, if the desired number of units is produced, because of its equivalent returns in profit.

The market study provided a survey result of a potential monthly demand of 648 units and a market share of 80%. This shows that for the 648 units produced, there is already a share in the market. The Corporation may opt to produce more to meet the expected demand. The proponents used a probability sampling. The marketing strategies include the following:

Product - concentrating on its USP (Unique Selling Price), the decals to show artistic designs Price - cheaper than that being sold by the competitors (Looney Tunes, Gift Gate and Tickles) at a price range of P70-200, while the proponents' selling price is P82. Placing - in the class A to B market. Promotion - use of Direct Selling, to ensure a personalized transaction to be able to discuss fully the benefits derived by a customer in purchasing the mugs. This is done based on the survey results.

The proponents formulated the marketing mix and will try to achieve the desired profit, and efficiency. In coming up with the selling price of P 82, competition based pricing was used. The proponents made use a 31% mark up for the product.

On the financial aspect, the corporation estimated the operating costs, production costs for each month during the production period. The costs are derived to avoid unnecessary costs and classified the Fixed and Variable costs direct costs, indirect costs and Factory overhead.

The financial study showed positive results evidenced by the factual figures shown in the financial chapter of this paper. The return on investment of the corporation yielded to be four times our initial investment. Return on equity was computed to be 2.88, and return of sales was 22.67%. These figures characterize a financially stable corporation and the continuance of the corporation's proposed operations would be favorable. The corporation adapts rotational policy in the positions stated in the Organization Structure. Upon agreement, the proponents established the rules and regulations in the workplace to avoid inconsistencies. Legal requirements can be compiled with especially those needed in the formation of the Corporation such as Articles of Incorporation and the By-Laws. The Gannt chart was also created to guide the proponents of the corporation's target activities for the entire production life it also ensures pre-operational, operational and post-operational activities.

The results seem to be favorable. The study on its technical, market, legal, management and financial aspects determine the feasibility of the product. Thus, there is no reason for the proponents to discontinue its operation. The proponents truly believe in the product. They are also guaranteed that the whole operation process will be as effective as stated in the theoretical framework. The product will surely be accepted by a variety of users existing in the present society.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU09322

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

90 numb. leaves ; Computer print-out.

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