i

ii

RECOMMENDATION FOR ORAL DEFENSE

This feasibility study entitled BATATAS CHIPS prepared and submitted

by SHIELA R. ABLANEDA, CARLA C. LOPEZ, GLECELYN D. YANTO,
REYMAR ENTIENZA, in partial fulfillment of the requirements for the degree
Bachelor of Science in Business Administration has been examined and is
recommended for acceptance and approval for Oral.

REYCARLO SECRETARIO, CPA, MBA

Adviser

FEASIBILITY STUDY COMMITTEE

IvangGil Godeloson, LPT, DBA-CAR

Chairperson

Xerez Singson, CPA, MBA Reymond Gerio, CPA

Member Member

Joey Beringuela, CPA

Member

ACCEPTED and APPROVED for Final Oral Examination

ISABELITA F. ZABALA, LPT, MBA

Dean, College of Business Administration & Accountancy

 iii

APPROVALSHEET

Result of Oral Examination for SHIELA R. ABLANEDA, CARLA C.

LOPEZ, GLECELYN YANTO and REYMAR ENTIENZA candidates for the
degree Bachelor of Science in Business Administration.

Feasibility Study: BATATAS CHIPS BUSINESS

Place: Mabini Colleges,inc.

College of Business Administration and

Accountancy

Defense Room, Daet, Camarines Norte

Date: December2022

This id to certify that SHIELA R. ABLANEDA, CARLA C. LOPEZ,

GLECELYN YANTO, and REYMAR ENTIENZA passed the oral examination
with a final rating of __%.

ORAL EXAMINATION COMMITTEE ACTION

Chairperson: Ivan Gil Godeloson, LPT, DBA-CAR _____________

Member: Xerez Singson, CPA, MBA _____________

Member: Joey Beringuela, CPA _____________

Member: Reymond Gerio, CPA _____________

ISABELITAF.ZABALA, LPT, MBA

Dean, College of Business Administration & Accountancy

 iv

CERTIFICATION OF THE SECRETARY

This is to certify that the suggestions and recommendations given by the

Panel of Examiners in connection with the oral defense of the feasibility study
entitled: BATATAS CHIPS were complied with.

FRANCE ABEGAIL TOLIN

Secretary, Oral Defense Panel

 v

CERTIFICATION OF THE EDITOR

This is to certify that the feasibility study of SHIELA R. ABLANEDA,

CARLA C. LOPEZ, GLECELYN YANTO and REYMAR ENTIENZA entitled:
BATATAS CHIPS was edited by the undersigned.

FRANCE ABEGAIL TOLIN

Editor
 vi

AUTHORIZATION

This feasibility study entitled, BATATAS CHIPS submitted to the College

of Business Administration and Accountancy of Mabini Colleges, Inc. which is
deposited in the library of CBAA Research Unit and the Main Library is open for
inspection and is to be used with due regard to the rights of the proponents. The
proponents grant the privilege of loan or photocopy to accredited borrowers
provided proper credit is given in subsequent written or published work.

Permission from extensive copying of the work for scholarly purposes

may be granted by the Dean of College of Business Administration and
Accountancy. It is understood that any copying or publication of this paper for
financial gain shall not be allowed without a written consent.

SHIELA R. ABLANEDA

CARLA C. LOPEZ

GLECELYN YANTO

REYMAR ENTIENZA

Daet,CamarinesNorte

December 2022
 vii

ACKNOWLEDGEMENT

We, the proponents, are truly thankful to the following people for giving us
their time and effort to help us. This feasibility study could not have been
accomplished without their guidance and help.

First and foremost, we would like to thank and show our gratitude to our
Almighty God for giving us the guidance and giving us what we all need to
accomplish this feasibility study. Through Him and His will, we are a step closer
to our dreams.

We would also like to express our sincerest gratitude to our beloved

subject professor Mr.Ivan Gil B. Godeloson for guiding and supporting us
throughout this whole school year. This feasibility study wouldn’t be possible
without his guidance. Also, his lectures have helped us to make this feasibility
study better.

We also want to show our appreciation to our feasibility adviser Mr.

ReyCarlo Secretario for guiding us and assisting us with everything related to
study. His comments and suggestions really made a big impact into our study.
Also, his remarks made our feasibility study better and more precise.
 viii

DEDICATION

The proponents would like to dedicate this feasibility study to the following
people for their continuous support while writing this paper:

First and foremost, praise and thanks to God, the Almighty, for his
guidance to us throughout this journey. We owe everything to you. We indeed
blessed by you

To our advisers, thank you for not giving up to give advice on us and
staying with us until the end. We are going to bring with us your words and
remarks.

To our family, for their inspirational messages and words of

encouragement and financial support. Words can’t be expressed but we are
sending our sincerest appreciation for understanding us. Thank you for your
patience and guidance.

To our friends, for their emotional support and concern, especially in

cheering us and helping overcome the obstacle we encountered in our field study
journey.

The Proponents,

SHIELA R. ABLANEDA

CARLA C. LOPEZ

GLECELYN YANTO

REYMAR ENTIENZA
 ix

TABLE OF CONTENTS
Title page..............................................................................i
Approval Sheet.....................................................................ii
Certification...........................................................................iii
Acknowledgement................................................................iv
Dedication ............................................................................v
Table of Contents.................................................................vi
List of Tables........................................................................ix
List of Figures ......................................................................xi

CHAPTER I PROJECT SUMMARY

A. Business Title ................................................................
B. Location of the Business ...............................................3
C. Descriptive Definition of the Product .............................3
D. Projects Long-Range Objectives ...................................5
E. Feasibility Criteria ..........................................................5
F. Highlights of the Project .................................................6
Mode of Financing..........................................................8
G. Major Assumptions and Summary
of Findings and Conclusions 7
Market Feasibility ........................................................8
Technical Feasibility ...................................................10
Financial Feasibility ....................................................11
Socio-Economic Feasibility .........................................11
Management Feasibility ..............................................12

CHAPTER II MARKET STUDY

A. Market Description ........................................................
Product Specification......................................................14
Demographics.................................................................15
Geographic Location.......................................................15
Competition ....................................................................15
B. Demand Analysis ..........................................................17
C. Supply Analysis .............................................................21
D. Demand and Supply Analysis........................................24
E. Price Study.....................................................................25
F. Factor affecting the market.............................................26
G. Marketing Program........................................................27
Target.............................................................................27
Marketing program..........................................................28
Target Market.................................................................28
Pricing Strategy..............................................................28
Marketing Strategy..........................................................28
Place...............................................................................28
People.............................................................................29
Product...........................................................................29
Price................................................................................30
Promotion.......................................................................30
Social Media...................................................................31
Fliers...............................................................................32
 x

Logo................................................................................32
Distribution Channel of the Business..............................33

CHAPTER III TECHNICAL FEASIBILITY

A. The Product ...................................................................
B. Manufacturing Process ..................................................35
C. Plant Size and Production Schedule .............................38
D. Machinery and Equipment ............................................40
E. Store Location................................................................44
F. Plant Layout....................................................................44
G. Building and Facilities ....................................................47
H. Raw Materials and Supplies ..........................................47
I. Utilities ............................................................................48
J. Waste Disposal ..............................................................51
K. Production Cost .............................................................51
L. Labor Requirements ......................................................53
M. Other Expenses ............................................................54

CHAPTER IV FINANCIAL STUDY

A. Financial Assumptions ..................................................
B. Total Project Cost ..........................................................59
C. Source of Income ..........................................................60
D. Financial Statements .....................................................61
Projected Income Statement .........................................61
Projected Statement of Cost of Goods Sold ..................62
Projected Statement of Cash Flows ..............................63
Projected Statement of Financial Position .....................64
Projected Statement of Changes in Partners’ Equity .....65
E. Financial Analysis ..........................................................66
Return on Investment.....................................................66
Payback Period...............................................................67

CHAPTER V SOCIO ECONOMIC STUDY

Contribution to the Economy ..............................................69
Contribution to the Government ..........................................69
Contribution to the Environment .........................................69
Contribution to the Customers ............................................ 70
Contribution to the Employee ............................................. 70

CHAPTER VI ORGANIZATION AND MANAGEMENT STUDY

A. Basic Consideration in Forming the Organization .........
B. Form of Ownership ........................................................
C. Organizational Chart .....................................................72
D. Officers and Key Personnel ..........................................72
E. Management Proposals ................................................76
F. Project Schedule ...........................................................89
APPENDICES ......................................................................
Appendix A
 xi

Request letter,
Appendix B
Sample Questionnaire
Appendix C Articles of Partnership
etc.
CURRICULUM VITAE
 xii

LIST OF TABLES

Table Description Pages

2.1 Number of Historical and Projected Population........ 17
2.2 Number of Historical Population............................... 18
2.3 Number of Historical Population............................... 18
2.4 Historical Demand of Chips .................................... 19
2.5 Projected Demand of Chips .................................... 20
2.6 Projected Demand of Batatas Chips ....................... 21
2.7 Historical Supply from Competitors......................... 22
2.8 Projected Supply from Competitors......................... 23
2.9 Total Historical Supply from Competitors.................. 24
2.10 Total Projected Supply from Competitors ................ 24
2.11 Demand and Supply Gap for Batatas Chips............. 25
3.1 Working Schedule..................................................... 38
3.2 Working Schedule..................................................... 39
3.3 Production Size and Production Schedule............... 39
3.4 Production Schedule................................................. 40
3.5 Production Equipment.............................................. 41
3.6 Furniture and Fixtures............................................... 41
3.7 Office Equipment ..................................................... 42
3.7 Office Supplies.......................................................... 43
3.8 Store Equipment....................................................... 43
3.9 Rent Expense........................................................... 47
3.10 Leasehold Improvement........................................... 47
3.11 Raw Materials........................................................... 48
3.12 Production Tools and Supplies................................. 49
3.13 Water Consumption.................................................. 49
3.14 Communication Expense.......................................... 49
3.15 Power Consumption................................................. 50
3.16 Production Cost of NutriBatatas .............................. 52
3.17 Employee Compensation........................................... 53
3.18 Remittance and Contribution..................................... 53
3.19 13th Month Pay........................................................... 54
3.20 Permits and Licenses............................................... 54
3.21 Packaging and Labeling........................................... 55
3.22 Freight in................................................................... 55
3.23 Repairs and Maintenance......................................... 55
3.24 Cleaning and Sanitation Supplies............................. 56
3.25 Projected Statement of Changes and Partner......... 57
 xiii

LIST OF FIGURES

Figures Description Pages

1.1 Propose Rented Space 3

2.1 Finish Product 14
2.2 Fliers 32
2.3 Logo 32
2.4 Distribution Channel 33
3.1 Finish Product 34
3.2 The Process of making batatas chips 36
3.3 Vicinity Map 44
3.4 Perspective View 44
3.5 Front View 45
3.6 Floor Plan 45
3.7 Electrical Plan
46
3.8 Plumbing Plan
46
6.1 Organizational Chart
72
6.2 Dress Code
83
6.3 Implementation Plan
90
Appendices
Articles of Partnership, etc.
Annexes
Current Ratio
Return on Investment
Payback Period
Net Profit Margin