A feasibility study on file-o-text

Date of Publication

1998

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Business Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Business Management

Abstract/Summary

The name of the company is BOARDS Incorporated. The company is located at Unit 5F, Isabelle Mansion Condominium, Levister Road, Parañaque Metro Manila. The product name is the File-O-Text. It is a multi-purpose board consisting of a corkboard, white board and clip board rolled into one. The File-O-Text was chosen as the product to produce because of its versatility and practicability. It can be useful for a wide variety of people. The projected market of the File-O-Text are residents of Ayala Alabang Village and Alabang Hills. These villages are located in the southern part of Metro Manila. The group considered these locations as the primary market because most of the members of the group live near and within these villages. The people living in these villages belong to the upper and middle income classes. Since the File-O-Text can be considered as a luxury good because only individuals with disposable income can afford the File-O-Text, low-income classes will not be considered as the primary market. The market consists of house wives, students, business executives and young professionals, etc. The File-O-Text is useful for organizing and sorting schedules specially for those who have a fast-paced life-style.

The monthly demand for the File-O-Text was estimated to be 291 units a month. This proves that there is a substantial demand for the product. The company's monthly output will be 50 units. This will capture a 17.18% share of the market.

The marketing strategy of the corporation will focus on quality and practicability. It is important that every production output will satisfy and delight the customer. It should be able to exceed the customer's expectations. Durability will be of main concern. The File-O-Text assures them of this. It not only provides two useful boards in one multi-purpose board, but also it gives the customer a better alternative. The File-O-Text is much cheaper than the rest of the boards. Instead of buying a white board or corkboard or clip board individually, you can have all of these in one multi-purpose board at a cheaper price.

The promotional strategy Boards Incorporated will implement are flyers and posters. This will inform the market of the availability and existence of the product. The distribution of the File-O-Text will be through the practicum bazaars and through personal selling.

The company has an average capacity of 12.5 units per production day. The company will be able to produce 50 units per month. A total of 36 production days will be allotted by the company to mass produce the File-O-text. Total direct cost per unit is P 114.72 and total indirect cost is P 14.84. Total factory overhead is P 15.24. The selling price of the product is P 190. Fixed cost amount to P 15.24 and variable cost amount to P 129.56.

The company's form of ownership is a main factor in its operation and decision making processes. In a newly formed business which involves several investors, a corporation would be the most appropriate form of ownership. The corporation is composed of a board of directors and stockholders. The existence of the corporation will start immediately after its registration with the Securities and Exchange Commission of De La Salle University. Registration will be accomplished by the end of September 1998 upon enrollment of the group in PRACTICUM 1. It is expected to exist for 1 year and will also end on September of the following year which is the last year of the practicum course.

The capitalization of Boards Incorporated is P 10950. The projected income of the corporation is P 10968. The return on investment is estimated to be 1.0016 or 100%. The corporation is expected to earn a reasonable amount of profit during the course of operations.

There are several social benefits the corporation provides. First, it provides alternatives for consumers in purchasing products. It will provide a supply of multi-purpose boards at a cheaper price. The corporation also generates employment and income. Since the corporation will produce the File-O-text, it will provide an additional demand for raw materials which will eventually benefit suppliers. Lastly, the members will be trained to handle and have a better understanding of labor-management relations. The experience that each member will gain will be useful in the future when they put up their own businesses and become entrepreneurs themselves.

Conclusion: Based on the results of the feasibility study, the group has come up with the following conclusions: It is going to be worthwhile to produce the product. Time and effort will not be wasted in producing the product. The group will be able to earn a reasonable amount of profit. Lastly, the group will gain valuable experience in running a corporation.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU09327

Shelf Location

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

Physical Description

[155] leaves

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