VersaCap Corporation

Date of Publication

1999

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 VersaCap is a lightweight cap made of cotton twill that uses a Velcro strap for fastening instead of the usual plastic lock. The Velcro strap provides the cap with a secure means of fastening aside from being more durable than the plastic and metal types of locks.

The VersaCap is manufactured by VersaCap Corporation. The group came up with the mentioned name for the corporation because its original idea was to make a cap which was waterproof and can easily fit into anyone's pocket. But due to design and material constraints, the proponents decided to drop the original idea and come up with a new one. The name was retained because it was easier to remember and pronounce.

In setting up the corporation, the following Incorporators: Melissa Alli, Jacqueline Jay Cruz, Lindsay Lopez, Kelvin Ong, Rose Sevilla, Melanie Tibon and Rene Vincent Torralba are to invest or to subscribe to 1,600 shares each in order to comply with the requirements provided for by the Business Management Department in order for the corporation to be organized.

Since convenience, comfort, quality and style are what potential customers look for in the product, the group conceptualized the VersaCap-cap 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 VersaCap. 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 proponents 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 15 units of the VersaCap a month, costs will be covered and anything the proponents 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 maximum plant capacity of 60 units.

On the marketing aspect, survey results show that there will be a potential monthly demand of 210 with a market share of 60.95%. This shows that for the number of units of produced per month, there is a corresponding share in the market. The VersaCap will not run out of demand because of the large number of individuals who will be willing to purchase the product. In order for the corporation to take advantage of the demand, the proponents may decide to produce a larger quantity of the VersaCap to satisfy the projected demand.

The survey was done using systematic sampling method and stratification techniques, the results of which are included in the same chapter. The results showed that the market placed their priorities on high product quality and found promotion through flyers as the most effective. The survey also indicated clothing shops as the market's preferred place in purchasing caps.

In arriving at the selling price, the proponents made use of cost-based pricing and added a 120% 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 proponents will be able to produce a total of 32 units of the product at an initial cost of P 14,000.00. 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 business is profitable since the consolidated income statement verifies that the proponents will be receiving a net profit of P 74,847.93. The balance sheet supports the budgets computed and confirms that the circulations were correct since the total assets and total liabilities both totaled P 95,847.93 by the end of October. Furthermore, the financial ratios provided for in this chapter conclude that the VersaCap is feasible, reflecting a return on investment of 534 63%.

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 VersaCap Corporation 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

Print

Accession Number

TU10173

Shelf Location

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

Physical Description

144 numb. leaves

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