Chapter 3

PROJECT FEASIBILITY STUDY

Company Profile

Boss Gons Coffee House is a company that plans to open a coffee shop with a

farm that will serve food and beverages made from ginger and organic coffee beans, as well as

promote local products. Customers can also immerse themselves in the production and witness

the creation of some of the products they purchase at the company's recreation area. This

business sells pastries and beverages, namely Organic Organic Ginger Coffeeand Organic Ginger

CoffeeCupcake. This is the company's initial menu; however, as it expands, it hopes to produce a

broader range of products based on the combination of ginger and coffee.

Business Name: BOSS GONS COFFEE HOUSE

Owner/s: Hannah Marie M. Aloba

Mary Grace S. Moya

Sean Justin A. Morales

Christian T. Ponce
Company Logo

Figure 1
Company Logo

Figure 1 displays the company logo of the Boss Gons Coffee House. The logo consists of a

man drinking coffee to emphasize that you should start your day with a good cup of ginger

coffee. To break the down the logo, they are as follows:

● Business Name - Boss Gons was written three times to emphasize the morning,

afternoon, and night, implying that our coffee shop is open 24 hours a day, seven days a

week.

● Brown Color - Brown emphasizes coffee's decadent significance while conveying its

aesthetic feeling.

● The Ring - A business cannot afford to be stagnant; the ring surrounding the company

name boldly represents the company's desire for continuous improvement.

Vision

Produce and distribute high-quality ginger coffee products that will help the coffee

industry in our country grow economically.

Mission

To provide excellent customer service while consistently serving good ginger coffee

products.

Goals and Objectives

Boss Gons Coffee House aims to achieve the following goals:

● To produce a wider range of high-quality ginger coffee products

● To provide consistently excellent customer service

● In the coming years, we plan to open a few coffee shop locations throughout the

Philippines.

● National recognition

Core Values

● Commitment. Dedication in fulfilling business oaths.

● Continuous Improvement. Responsibility to acclimate with changes.

● Goal-Oriented. Never losing sight and to continue to be driven with purpose.

 ● Integrity. Upholding moral principles towards the customers and stakeholders.

● Accountability. Being liable to actions done, prioritizing safety of employees and

customers.

● Sustainability. Achieving goals without compromising the future generations.

Key to Success

In the realization of the goals of Boss Gons Coffee House, the following conditions are

considered:

1. Employing people who have a strong desire to learn and the perseverance to work in a

given environment, whether in manual labor or customer service.

2. Providing exceptional customer service. Catering to their feedback and responding

quickly.

3. Market changes necessitate adaptation. Always staying up to date and paying attention to

trends.

Business Philosophy

We believe that the key practices of a company should benefit society. We are committed

to increasing our long-term value by putting our business philosophy into action. In order to

satisfy customers' growing safety demands, production transparency at all stages and complete
product traceability are crucial.Our company's goal is not only to grow, but also to dedicate our

own practices and technology to improving the culture, benefits, and welfare of people all over

the country. Our success is dependent on the success of our customers and the entire Boss Gons

Coffee House team.

Product Profile

Boss Gons Coffee House uses organic processes to create high-quality products from

pure ginger and coffee. These are the Organic Ginger Coffee and Ginger Coffee Cupcake.Boss

GonsCoffee House not only endorses delectable treats, but it also certifies high nutritional value.

The products are affordable to people of all ages and provide significant health benefits.

Organic Organic Ginger Coffee Drip Bag

Figure 2
OrganicGinger CoffeeDrip Bag
 The Organic Ginger Coffee Drip Bag is made from pure coffee beans and ginger that

have been ground and combined to make one fine product. Coffee beans were roasted to separate

the seeds from their shells before being ground to a fine and thick texture. The ginger was peeled

and sliced into thin slices before being exposed to the sun for 2-3 days to completely dry before

being ground into a powder in a blender. Each drip bag has 10 grams of ground coffee and

ginger in it. Coffee contributes 8 grams, while ginger contributes 2 grams.

Ginger Coffee Cupcake

Figure 3
Ginger Coffee Products

A ginger coffee cupcake is a baked cupcake made with ginger coffee. It was made by

combining the dry ingredients (all-purpose flour, wash sugar, baking powder, baking soda, cocoa

powder, ginger powder, and coffee powder) with the wet ingredients (buttermilk, water, egg and

oil). The mixture was placed in paper cups, then in cupcake molders, and baked for 10-15

minutes. It is a treat that can be enjoyed by people of all ages. It is best enjoyed warm, as the

sweetness melts in the mouth.

MARKET FEASIBILITY
 Marketing is the process of better understanding, perceiving, stimulating, and satisfying

customer needs, desires, and expectations through the goods and services of a specifically chosen

target market than the competition. It is the business process of developing a strong relationship

with a customer in order to gain their loyalty.

Market Definition

Product Acceptability

Market Testing

Market Acceptability

Market Demand

Market Supply

Market Forecasting

Market Competitors

Market Share

Market Price

The market price is the amount of money that can be used to buy or sell the products. The

market price of each product on the Boss Gons Coffee House menu was determined by adding

the variants' manufacturing costs per unit, administrative and selling expenses, and the mark-up

for each product. The market prices of the products are shown in the tables below.

Table 1
Product Costing of Ginger Coffee Cupcake
 Quantity TOTAL
DESCRIPTION Used UNIT COST COST

Direct Materials: 190

All Purpose Flour 1&¾ Cup 20

Wash Sugar 2 Cup 30
Baking Powder ½ Tsp 5
Baking Soda ½ Tsp 5
Cocoa Powder ¾ Cup 25
Buttermilk 1 Cup 16
Water 1 Tsp 5
Egg 3 Pcs 24
Oil ½ Cup 40
Ginger Powder ½ Tsp 10
Organic Coffee ½ Tsp 10

Indirect Materials
1 pc 10
Packaging

Direct Labor 10

Factory Overhead 0.15

Total Manufacturing Cost 200.15

Number of Units 25

Total Manufacturing Cost per 8

Unit

Additional Expenses 0

Contingency Cost (+10% of 8.8

MC)

Add: Mark up (75% of CC) 6.6

Selling Price 15

Table 1 shows the price of the Ginger Coffee Cupcake. The total direct material cost is

Php 190, direct labor is Php 10, and overhead is Php 0.15, for a total net manufacturing cost of
Php 200.15. The total manufacturing cost per unit is Php 8 with no additional expenses, plus a

contingency of Php 8.8 plus a markup of Php 6.6, bringing the selling price of Ginger Coffee

Cupcake to Php 15.4 or Php 15.

Organic Ginger Coffee Drip Bag

Marketing and Promotional Strategies

As the company is still in its early stages, Boss Gons Coffee House must be both

hardworking and intelligent in its marketing. This is done to attract more customers and gain

their trust and loyalty to what the company has to offer. The following are some of the strategies

that the company will use to promote the business:

● Social Media Marketing - A Facebook page was created with information about the

business, including the foods, beverages, and services it offers. The page also made

several posts about how the products appear. Advertisement posters were also on display.

Because social media is important for advertising local products, the business page

should join buy and sell pages and groups.

 Figure 4
Facebook page of Boss Gons Coffee House

Figure 4 shows the page from facebook where the owners of the shop are also the

admins. They facilitate and organize on when and what to post. The page also includes the menu

of the business and how to contact in case of ordering.

● Direct Marketing - Because not all of its clients utilize social media, Boss Gons Coffee

House won't rely completely on it. Another way for people to learn about the business is

through direct marketing, which entails introducing products to potential buyers utilizing

a product catalog. Word-of-mouth marketing and customer persuasion are strategies

because some prospective clients may have inquiries that the marketing representative

can immediately address. Each page of the catalog that will be utilized for direct

marketing is shown in the photographs below:

 Figure 5
First page of Boss Gons Coffee House Brochure

Figure 6
Second Page of Boss Gons Coffee House Brochure
● Distribution of Flyers - Handing out flyers to passers-by is one way for the company to

reach out to the general public. The flyers will be designed as follows:

Figure 7
Flyer of Boss Gons Coffee House
 ● Product Sampling - During the soft opening, the company will take advantage of the

opportunity to provide customers with product samples. This will allow them to collect

more feedback and make changes to the products.

● Delivery - Boss Gons Coffee House has its own physical store, but it also offers delivery

to customers so that they can enjoy their coffee from the comfort of their own homes.

Channels of Distribution

Transportation of the Product

Packaging

Conclusion
 TECHNICAL ASPECT

The technical aspect includes the project schedule as well as all of the detailed processes

required to manufacture the products offered by the company. This section also includes the

location of the farm and shop, as well as the plan and improvements required in the area. This

context also includes the development of building layouts, raw materials, tools, machines, and

equipment. This section explains all of the technical aspects of starting a business.

Project Schedule

Product Experimentation

The menu at Boss Gons Coffee House currently includes two (2) items: Organic Ginger

Coffee and Ginger Coffee Cupcake. Experiments were carried out when developing these

products in order to meet the preferences of the customers. Adjustments to the product

experimentation were made in response to information found online, relevant films, and

professional advice.

Ginger Coffee Cupcake

Two (2) product experiments were conducted in order to create the best-flavored ginger

coffee cupcake. The proportions of the ingredients used to make the cupcake varied. The table

includes the experiment number, measurements, ingredients, and remarks. Measuring cups and
spoons, a strainer, a whisk, a mixing bowl, cupcake liners, a cupcake molder, packaging, and an

oven were all used.

The first product experimentation is as follows: (1) First, prepare all of the materials and

ingredients needed. (2) In a mixing bowl, combine all of the dry ingredients, including all-

purpose flour, wash sugar, baking powder, baking soda, cocoa powder, and ¼ teaspoon salt.

Finally, ¼ tsp ginger powder espresso powder (3) In a separate bowl, whisk together the

buttermilk, water, and oil. (4) Finally, add the eggs and wet ingredients to the dry ingredients

mixture. (5) Combine all of the ingredients and stir until well combined. (6) Line a cupcake

molder with cupcake liners. (7) Place the cupcake batter in the molder. (8) Finally, place the tray

in the oven and bake for 10-15 minutes, or until fully cooked. The second experiment used the

same methods and ingredients as the first, but the ginger and coffee powder measurements were

changed to ½ tsp.

Table 1
Product Experimentation in Boss Gons Coffee House

Product Ingredients with Measurements Remarks

Experimentatio
n
1 & ¾ cup all purpose flour ● The cupcake was
2 cup wash sugar
1 ½ tsp baking powder tasty, but the coffee
½ tsp baking soda
and ginger flavor
¾ cup cocoa powder
1 buttermilk didn't stand out.
1 water
3 egg
½ oil
¼ ginger powder
¼ organic coffee
1 & ¾ cup all purpose flour ● When compared to
2 cup wash sugar
½ tsp baking powder the first experiment,
 2 ½ tsp baking soda the coffee and ginger
¾ cup cocoa powder
1 buttermilk can already be tasted.
1 water
3 egg
½ oil
½ ginger powder
½ organic coffee

Organic Ginger Coffee

Product Description

The products of Boss Gons Coffee House are made from 100% organic coffee and ginger

that has been freshly picked from our farm. Organic ginger coffee and ginger coffee cupcakes are

currently available. Each product that enters the mouth bursts with delicious ginger coffee

goodness, filling the room with the aroma of pure ginger and coffee.

Process

Before reaching the intended customers, the products must go through a number of

processes. In some business procedures, seeds are first transformed into a fine texture or powder.

The company's early goods were made using these techniques. The process flowchart shows the

many steps and the time given for finishing the products.
Process Flow Chart

The flow charts for the production of each product at Chocolateria de Compostela

provide specific information and numbers. It includes the total number of stages, the specifics,

the order in which the steps are performed, and the end result.

Organic Ginger Coffee

Ginger Coffee Cupcake\

Time Study

Detailed Flow Chart of Manufacturing

The manufacturing flow chart outlines each step of the product's production, from

administrative office decision to raw material acquisition and delivery to customers. The steps

are detailed in the image below.

Site Selection

By weighing the benefits and drawbacks of various sites, site selection aids researchers in

examining and determining the optimal site location for the firm. Comparisons of cost, ease of

access, and convenience are included below. The land possibilities, site locations, and specifics

for each site are displayed in the table below.

Site Plan

Site Improvement

The proposed site improvement of the business would be the installation of CCTV

cameras on every corner to tighten the security of the Boss Gons Coffee House facilities and

staff. CCTV cameras will aid in the protection of the establishment against intruders and thieves.

Cost of Improvements

Decision Matrix

Comparative Study for Rent or Purchase Land

Building Profile

Muther’s Grid

Utilities

Building Cost

Plant Layout

Production Layout

Raw Materials

Cost Estimate

Production Operating System

Value Stream Mapping

Production Capacity

Production Plan

Administrative and Other Types of Equipment and Materials

Equipment and Machines

Tools

Safety and Security Equipment

Sanitary

Control Mechanism

Quality Control

Personal Protective Equipment

Industrial Waste

Conclusion

MANAGEMENT ASPECT

The section assesses the company project by analyzing it and determining whether it

meets the requirements. This section describes the business's tasks and duties, personnel

requirements, and authority flow. Policies and regulations are developed to achieve specific

corporate objectives, and authority is required to submit conditions to define the flow of

operations both inside and outside the firm.

Forms of Ownership

Boss Gons Coffee House is owned by four people: Hannah Marie Aloba, Mary Grace

Moya, Sean Justin Morales, and Christian Ponce. It is a general partnership type of ownership in

which the stated owners were in charge of running and managing the firm's organization and

production, as well as the analysis and responsibility for complying with standards and setting

goals for improvement. The owners invest their money, property, labor, and other resources in

the business, and all four owners are ultimately responsible for business liabilities, profit sharing,

and business obligations and debts. Values and techniques are shared and adapted to achieve a

common goal in this type of ownership. A partnership's four owners must agree on critical issues

such as liability limits proportional to capital investment and the ability of each partner to

execute binding agreements on behalf of the association and construct partnership agreements.

Organizational Structure

Boss Gons Coffee House used a functional organizational structure, with the highest

levels of responsibility at the top and the chain of command descending from there. Employees

are organized into departments based on their specific skills and their corresponding function in

the company, and each department is managed independently with its own supervisor. The

advantage of this structure is the specialization of each employee's skills and the use of those

skills to run the work in the firm and even improve production and services.
Organizational Plantilla

The provisions of this stated in the Department of Labor and Employment Book III -

Conditions of Employment shall apply to employees in all establishments and undertakings,

whether for profit or not, but not to government employees, managerial employees, field

personnel, members of the employer's family who are financially dependent on him, domestic

helpers, persons in the personal service of another, and workers who are paid by results. Boss

Gons Coffee House will uphold the set conditions in accordance with the law.

The Regional Tripartite Wage and Productivity Boards should set the minimum wage

rates for agricultural and non-agricultural employees and workers in each region of the country.

(As revised by Section 3 of Republic Act No. 6727 of June 9, 1989.) Republic Act (RA) No.

6727, also known as the Wage Rationalization Act, emphasizes the people's right to work and

other labor rights, and requires employers to pay their employees a minimum wage. According to

the National Wages and Productivity Commission, the daily minimum wage rates in the

Philippines, specifically in Region VII, in 2021 were 351.00 - 404.00.

FINANCIAL FEASIBILITY