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_aanadera, Leah Angeline G. Gener, Samantha Nicole R. Pernia, Ralph Joseph R. Reales, Clarisse Anne L. Sanchez, Cayra Janelle C.
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_aChi-Chips /
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_cBanadera, Leah Angeline G. Gener, Samantha Nicole R. Pernia, Ralph Joseph R. Reales, Clarisse Anne L. Sanchez, Cayra Janelle C.
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_cApril 2024.46
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_a280 pages.
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_aFeasibility Study: (BSBA major in Business Economics) - Pamantasan ng Lungsod ng Maynila, 2024.
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_aExecutive Summary a. Business Description Snack Sphere is a manufacturing business that will be operating under B2B (Business to Business) transactions. The company's shareholders, consisting of five individuals, will operate under a general partnership as the members have agreed to equally share the profits and losses with one another. The company will only manufacture Chi-Chips products and will be distributed to consumers, retailers, and other kinds of businesses. As products will be available in different locations and sites, this can create a great brand awareness that can help the company to gain repeat customers. b. Market Analysis The marketing analysis conducted for Snack Sphere's feasibility study aims to assess the potential market for Chi-Chips. This section will cover critical details such as the target audience, competitive landscape, and marketing strategies that will be implemented to ensure a successful launch and sustained growth of the brand. It involves analyzing market dynamics and leveraging this information to establish the viability of Snack Sphere's business venture. To establish a strong market presence, Snack Sphere has developed a clear and compelling product description. This includes essential details such as the variety of flavors offered, the nutritional benefits, and the pricing strategy. Furthermore, Snack Sphere conducted a survey among competitors to gather valuable data on the existing supply and demand within the snack food industry. This competitive analysis helps forecast market trends and identifies potential opportunities and challenges. The findings are crucial for positioning Snack Sphere effectively in the market and for developing strategies that differentiate Chi-Chips from other products. To understand their target market, Snack Sphere also created a survey to identify their target audience-those interested in purchasing and trying Chi-Chips. The insights gained from this survey will guide product adjustments and enhancements to better meet consumer preferences. c. Marketing Feasibility Snack Sphere aims to establish a trusted and popular chips brand in the Philippines that offers protein rich chips providing a healthy yet affordable alternative to other junk foods. The company is committed to offering a new product in the market that will satisfy the customers' taste and encourage consumers to switch to protein-rich snacks. Above all, Snack Sphere is motivated by a strong desire to make the world a healthier place. In addition, Snack Sphere envisions expanding the business through long-term partnerships with groceries, and small-scale stores as well as expanding its customer reach through social media advertising and opening online stores. Snack Sphere believes in building strong relationships and cultivating a culture of trust with their customers, suppliers, employees, and the communities in which they operate. d. Technical Feasibility This section goes over the detailed procedure for how the company will produce and distribute the product. Chi-chips is a budget-friendly snack that is a healthier and more flavorful alternative to traditional potato chips. The menu features four distinct flavors namely: Chicken Cheese, Chicken Barbeque, Sour Cream and Onion Chicken, and Salt and Vinegar Chicken which retails for only Php 38.00 each. Moreover, Snack Sphere's production process begins with the acquisition of raw materials needed. After ensuring the quality of the materials and equipment, the operation can proceed to the marketing evaluation to confirm the product's market acceptability and perform a promotional campaign afterwards. Following this, Snack Sphere will be starting the mass production of Chi-Chips. Subsequently, the preparation of financial reports is also vital for the business in order to be able to make predictions and plan for the proceeding steps to increase sales and profitability. Chi-Chips' direct material cost per unit ranges from PHP 14.34 to PHP 14.84. Whereas, the direct labor per unit amounts to PHP 5.92 and the manufacturing overhead cost per unit is equal to 3.79. After adding the Value Added Tax (VAT), the final selling price of Chi-Chips is PHP 38.00 per pack. In terms of the ordering process, customers are given several options for placing their orders. Orders can be placed through various channels such as in-store or over the phone. Snack Sphere will be operational from Monday to Friday with a total of 8 operating hours, excluding lunch breaks for the employees. Meanwhile, the physical store is open starting at 8 AM until 5 PM daily. Another option is to place orders online through Facebook, Shopee, or Lazada. For pre-orders, employees will carefully process the request. Furthermore, Snack Sphere will promote its product through various social media channels. Using the appropriate social media platforms will significantly increase the effectiveness of the company's marketing efforts. e. Management Feasibility Snack Sphere is founded by a team of five partners, each bringing unique skills and expertise to the business. These partners collectively own and manage the company, sharing responsibilities, profits, liabilities, and obligations. Each partner holds a specific role within the organization, ensuring that all critical functions are effectively managed. To legally operate, the partnership agreement adheres to all necessary legal requirements, ensuring full compliance and legitimacy. After securing the required legal permissions, Snack Sphere will begin recruiting employees for various essential positions within the store. These employees will be integral in managing daily operations and helping to achieve the company's mission of offering high-quality, health-conscious snacks. The recruitment process will be thorough, ensuring that all employees meet the company's standards and are well-suited for their roles. The company has developed a fair and competitive compensation structure, including daily rates, overtime pay, 13th-month salary, and standard employee benefits including allowances. Additionally, Snack Sphere has established clear policies, rules, and regulations that all employees, both in-store and in the office, are expected to follow. These guidelines ensure a cohesive work environment and consistent operational standards. The management aspect of Snack Sphere encompasses a detailed discussion of the business initiation process and the specific management responsibilities required for smooth operations. Addressing these responsibilities upfront helps to mitigate potential legal issues and ensures that the company can achieve its objectives effectively. This structured approach is vital for maintaining the integrity and success of Snack Sphere as it grows and evolves in the competitive snack food market. f. Financial Feasibility This segment of the feasibility study will assess the financial viability of Snack Sphere's Chi-Chips. It encompasses fundamental accounting principles as well as other significant financial analyses. This aspect shall guide the company to visualize its resource allocation and financial planning. Furthermore, the data obtained serves as a foundation for Snack Sphere to predict its financial success and make informed business decisions. The chapter provides a comprehensive breakdown of the financial costs associated with the venture. The project cost section outlines the expenses incurred during the pre-establishment phase, with a total project cost of PHP 7,500,000. The financial aspect also details the sources of funding, including the initial investment from the partners, each contributing PHP 1,500,000 in the first year. By evaluating resource allocation and estimating associated expenditures, Snack Sphere projected revenues and expenses for the first five years of operation, utilizing financial statements such as the income statement and statement of cash flows. Other accounting tools, including break-even analysis and financial ratios, were employed to determine the company's financial outlook, with an initial break-even point of 280,183 units or PHP 9,551,257,75. g. Socio-Economic Feasibility The final aspect demonstrates how establishing the company will benefit the economy and other sectors. Snack Sphere promotes a healthier alternative to traditional chips available in the market.
520 _aOffering a healthier option to the general public will not only improve their overall health, but it will also provide them with more opportunities, such as employment. Beyond simply producing chips, Snack Sphere desires to make a positive social impact by providing jobs that support families. Besides, the company makes a significant contribution to economic growth by paying taxes and other operating license fees on a regular basis. On top of that, Snack Sphere remains dedicated to reducing the negative environmental impacts of mass production. The company will use sustainable practices, such as sourcing ingredients from sustainable suppliers and minimizing waste generation through proper waste management..
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