A feasibility study of the Woodshack Corporation
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 POR-TABLE is a wooden mini-table that can be folded up for easy storage. Because of its unique design and compactness, the POR-TABLE can be brought along and used almost anywhere. Besides being used as a study table and for serving meals in bed, on the couch or on the floor (or anywhere else), the POR-TALBE can also be used for a vast array of other purposes, depending on the user's need.
The POR-TABLE is manufactured by WoodShack Corporation. The group came up with the mentioned name for the corporation because it gives an idea of what type of venture the proponents are engaged in.
In setting up the corporation, there is a need for the following incorporators: Anne Marie Ang, Danna Rose Bautista, Sheila Benedictos, Jennifer Ching, Charmaine Lam, Sherry Ann Malabanan, Marc Anthony Pecson, Lilinette Salvador, Joseph Samson and Katherine Uy, to invest or to subscribe to 23 shares each in order to comply with the requirements provided for by the Business Management Department in order for the corporation to be organized.
Comfort and convenience are the group's top priorities. With this in mind, the group conceptualized the POR-TABLE - a product that would provide just that. In coming up with the product, the group ascertained the availability of materials that would be the main components of the POR-TABLE. According to the Technical Study, there are available materials for the product.
The Technical Study so provides that there are available sources of raw materials and that the components can follow the manufacturing process and maximize the working hours in doing so. With this information at hand, the group decided to pursue the study.
In connection to this study, the cost per unit of production and the break-even analysis were computed. Results proved that after selling 3 units of POR-TABLE a month, costs will be covered and anything the group earns in excess of that will be profit. This indicates that the group can recover costs easily and gain profit, especially if the corporation decides to sell at full capacity of 76.8.
On the marketing aspect, survey results show that there will be a potential monthly demand of 708 with a market share of 7.34 %. This shows that for the no. units of production per month, there is a share in the market. The POR-TABLE will not run out of demand because of the large number of individuals who will readily purchase the product. In order that the corporation take advantage of the demand, the proponents may decide to produce a larger quantity of the POR-TABLE to satisfy the projected demand.
The survey was done using systematic sampling and stratification techniques, the results of which are included in the same chapter. The results showed that the market placed their priorities on product quality and found promotion through personal selling the most effective. The survey also indicated department stores as the market's preferred place in purchasing the POR-TABLE.
In arriving at the selling price, the proponents made use of value-based pricing and added a 45% mark-up to the total project cost. The Market Study also contains details on the different marketing strategies that may be used by the group.
According to the Financial study, the group will be able to produce a total of 55 units of the product at an initial cost of P 23,000. The necessary budgets for the materials both direct and indirect, labor etc, were also computed. Financial statements such as the income statement proved that the venture in very profitable since the consolidated income statement verifies that the group will be receiving a net profit of P 89,747.55. The balance sheet supports the budgets computed and confirms that the calculations were correct since the total assets and total liabilities and stockholders' equity both totaled P 112,747.59. Furthermore, the financial ratios provided for in this chapter conclude that the POR-TABLE is feasible, reflecting a return on investment of 390%.
The organizational structure was a result of the group's decision and careful appointment was done for each of the positions. Together with this, the appropriate rules, regulations and policies were formulated and agreed upon among the members. Legal requirements were complied with and Gantt Chart was prepared to ensure the smooth flow of activities.
In view of the results shown, the group has all the reasons to continue with the proposed project. The POR-TABLE will not only be useful for students but it will also be beneficial to the different sectors, which includes the government, consumers, environment, officers and employees. This product will surely be a benefit to all regardless of what sector the market belongs to.
Abstract Format
html
Language
English
Format
Accession Number
TU09334
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
71 numb. leaves
Recommended Citation
Ang, A., Bautista, D., Benedictos, S., Ching, J., Lam, C., Malabanan, S., Pecson, M. B., Salvador, L., Samson, J., & Uy, K. T. (1998). A feasibility study of the Woodshack Corporation. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/16641
