RICE N' LIFE

ENTERPRISE:
A FEASIBILITY STUDY
ON RICE DEALERSHIP
 CHAPTER I
BACKGROUND OF THE STUDY

i. INTRODUCTION

Rice is a cereal grain. It is the most widely consumed

staple food for a large part of the world’s human population,
especially in Asia. It is the grain with the second highest
worldwide production, after corn, according to data for 2010.
(http://en.wikipedia.org/wiki/Rice)

The Philippines is the 8th largest rice producer in the

world, accounting for 2.8% of global rice production. The
Philippines was also the world’s largest rice importer in
2010. (http://en.wikipedia.org/wiki/RIce)
 INTRODUCTION

In 2010, nearly 15.7 million metric tons of palay (pre-

husked rice) were produced. In 2010, palay accounted for
21.86% percent of gross value added in agriculture and
2.37% of GNP. (http://en.wikipedia.org/wiki/Rice)

Rice is a gret source of complex carbohydrates which

give us the energy we need. According to FAO (Food and
Agriculture Organization of United Nations), rice provides
20 percent of the world’s dietary energy supply. Rice
contains all the amino acids essential for building and
maintaining muscle tissue, and make up antibodies,
enzymes, and hormones.
 INTRODUCTION

These amino acids also help maintain healthy skin, hair,

eyesight, and nourish the heart, lungs, tendons and
ligaments, brain, nervous system and glands. Rice is low in
fat, cholesterol, and sodium and hence makes a perfect food
for those with high blood pressure and requiring a low-
sodium diet. The calcium in rice (especially brown rice)
helps lower blood pressure. (http://vegrecipes4u.com/health-
benefits-of-rice/)

The researchers decided to engage in rice dealership.

The business is composed of two (2) partners who agreed to
enter in a General Partnership.
II. STATEMENT OF THE PROBLEM

“Rice N' Life Enterprise” aims to answer the five (5)

aspects of the feasibility study.

MARKETING ASPECT

1. What are the different classes of rice which may be

offered to the consumers?
1.1. Who are the target markets?
1.2 .What are the campaign programs and promotion
that need to be conducted?
 STATEMENT OF THE PROBLEM

MANAGEMENT ASPECT

2. How many employees need to be hired?

2.1. What are the qualifications of the employees to be
hired?

TECHNICAL ASPECT

3. What are the equipment/machineries needed in the

operation o the business?
 STATEMENT OF THE PROBLEM

FINANCIAL ASPECT

4. What is the starting capital of the business?

4.1. Is the business profitable of viable?

SOCIO-ECONOMIC ASPECT

5. What are the contributions of the business to the

consumers, employees, community, economy, and
government?
III. SCOPE AND LIMITATIONS

“Rice N’ Life Enterprise” is a wholesaler and retailer

of rice within Barangay Potrero, Malabon City. Different
kind of rice are available like Sinandomeng, Wag-Wag,
Jasmine, Dinorado, NFA Rice, Milagrosa, Malagkit, Ifagao
rice, Laon, Maharlika and Angelica. The target markets of
the business are the households and Sari-Sari stores in
Barangay Potrero, Malabon City where the business is
located. “Rice N' Life Enterprise” offered free delivery for
every sack of rice being purchased.
IV. PRODUCT DESCRIPTION

DINORADO. A type of rice that is popular in the

Philippines because of its great characteristics, quite
expensive than other rice. The rice is tender, slightly sticky
when cooked, sweet and pearly white color. Good for
household consumption.

SINANDOMENG. This rice is also mostly bought by

people because if you cooked it the grain is soft and
delicious.
 PRODUCT DESCRIPTION

MILAGROSA. This type of rice is aromatic long-grain

rice with almost translucent grain. It is very soft, sweet and
good smell when cooked.

ANGELICA. This type of rice is soft, tender and sweet

when cooked, it is pearly white in color.

WAG-WAG. Wag-wag has been around since 1955

when it was first released by the Philippine Seed Board for
lowland cultivation, primarily in Nueva Ecija and in flood
affected inland areas of Cagayan valley. Derived from the
tagalog word “wagwag”, meaning to shake off.
 PRODUCT DESCRIPTION

“Wag-wag” is a traditional rice variety that was

extremely popular in the 60's and 70's for its first class grain
quality.

JASMINE. This type of tice is a long grain variety of

rice that has nutty aroma and it's more expensive than other
type of rice.

MALAGKIT. This type of rice is also called sticky rice,

sweet rice or waxy rice that is mainly grown in Southeast
and East Asia which has opaque grains, very low amylase
content and it is sticky when cooked.
V. SIGNIFICANCE OF THE STUDY:

The feasibility study will help the following:

CUSTOMERS. The results of the study will helo the

customers in buying good quality of rice

BUSINESSMEN. The result of the study will help

businessmen, who opted to engage in establishing this kind
of business, that the same is profitable and viable

SUPPLIERS. The result of the study will help them in

knowing what kinds of rice are in demand in the market.
 SIGNIFICANCE OF THE STUDY

GOVERNMENT. The results of the study will help the

government to collect taxes from business owners in order to
generate revenues

FUTURE RESEARCHERS. The result of the study

will guide them as this will be used as a reference to all
business related students in conducting their research

VI. DEFINITION OF TERMS

WHOLESALING. The business of selling things in

large amounts to other businesses rather than to individual
customers.
 DEFINITION OF TERMS

RETAILING. The business of selling this directly to

customers for their own use.

RICE. A small white or brown grains that come from a

southeast Asian plant and are used as a staple food.

STAPLE. Needed constantly by many people.

VI. BUSINESS LOGO

The researchers named the business “R N'L

Enterprise”. R N'L stands for “Rice N' Life”. Rice is one of
the basic need of the people because rice is deemed life for
all Filipinos.
 BUSINESS LOGO

The logo symbolizes the cycle which means

continuous necessity of every individual for rice grains.
The color green signifies prosperity and abundance. The
color red signifies energy because rice is one of the
important elements which give Filipinos energy. The
color yellow signifies hope and happiness

The man in the logo represents a smiling Filipino

farmer who holds a bowl of steaming rice showing his
hard work in cultivating every grains of palay that he
crafted.
VII. LOCATION OF THE BUSINESS

Figure 1

Location of the Business

 LOCATION OF THE BUSINESS

Figure 1 shows the location of the business. Since

location is a key factor that determines the success of the
business, the proponents decided to be situated at #10
Victoneta Barangay Potrero, Malabon City. The business
is renting a commercial space which is equivalent to 50
sq. meters. The proponents choose this site because it is
easily accessible. It is beside Victoneta Market and
Residential Area along Victoneta Road and McArthur
Highway.
VIII. VISION, MISSION AND OBJECTIVES

VISION

“R N'L Enterprise” envisions to become one of the

leading rice dealership in Malabon City by the year 2020 by
effectively offering high quality of rice while providing
employment and satisfying the expectation of its consumers.

MISSION

“R N'L Enterprise” aims to efficiently utilize the

resources of the company by strengthening its current market
position through greater market publicity
and promotions which will build its identity and
transforming the business to become one of the dominant
rice dealers in food distribution industry.

OBJECTIVES:

• To earn the trust and loyalty of its customers by

continuously maintaining its business integrity and
credibility
• To respect and consider its employees as primary partners
in the continuous growth and development of the
company
• To create value-laden rice trade and dealership imbued
with dignity and social responsibility
 CHAPTER II
METHODOLOGY AND PRESENTATION OF DATA

I. RESEARCH DESIGN

The researchers used the descriptive method in gathering

the data needed in the study. Descriptive method is
essentially a method of quantitative descriptive of general
characteristic of a group under investigation. This method
involves the gathering of data regarding current condition
and ascertaining what is typical or normal under specific
conditions. Sometimes this method is known as status
survey, because the nature and the status of anything of a
group of persons, a number of object, a set of condition or a
class of events has to be determined (Reyes, 2004)
II. RESEARCH RESPONDENT

The researchers gathered the primary data which can be

acquired from the responses of the people from the vicinity of
Brgy. Potrero, Malabon City which consists of six (6) streets.
There are 397 respondents who have been surveyed.

III. RESEARCH TECHNIQUE

The researchers used the non-profitability sampling

particularly purposive sampling and convenience sampling
technique (Sevilla, 1992). The researchers used purposive
sampling technique to gather information from the respondents
found within six (6) streets in the vicinity of Brgy. Potrero,
Malabon City.
IV. RESEARCH LOCALE

The researchers conducted the survey in Barangay

Potrero with 397 respondents; Aronas Road with sixty six
(66) respondents; Orange Road with sixty six (66)
respondents; Pineapple Road with sixty six (66) respondents;
Avocado Road with sixty six (66) respondents; Lanzones
Road with sixty six (66) respondents and VMN compound
with sixty seven (67) respondents.

V. RESEARCH INSTRUMENT

The researchers formulates self-made questionnaire

with eight (8) questions categorized to determine the possible
and other related information.

VI. DATA GATHERING PROCEDURES

The total population, as of 2014, of Barangay Potrero was

obtained from the City Planning and Development of Malabon
City.

BARANGAY POPULATION
BARANGAY POTRERO 42,107
Source: NSO Census 2000- 2010 Annual Growth Rate – 0.42%
 DATA GATHERING PROCEDURES

• The researchers used the Slovin's formula in determining

the sample size.
• The research instrument used was self-made
questionnaire.
• The total number of questionnaire distributed were three
hundred ninety seven (397)
• Sixty six (66) respondents were gathered from Aronas
Road; sixty six (66) respondents from Lanzones, sixty six
(66) respondents from Avocado; sixty seven (67)
respondents from VMN compound; and one hundred
thirty two (132) respondent’s from Pineapple (66) and
Orange (66) Road.
• The researchers tallied and tabulated all the important
information for the research.
• The data were presented using the Slovin’s formula,
frequency and percentage.

VII. SAMPLE SIZE COMPUTATION

The researchers used the Slovin’s formula in

determining the sample size
 SAMPLE SIZE COMPUTATION

Slovin's Formula: Solution:

𝑵
𝑵 𝑛=
𝒏= 𝟏+𝑵𝒆𝟐
𝟏+𝑵𝒆𝟐
42,107
Where: 𝑛= 2
1+42,107 .05
n = sample size
N = population size 42,107
𝑛=
e = margin of error 1+105
(5%)
n = 397 sample size
VIII. PRESENTATION OF DATA
QUESTIONNAIRE RESULTS
Table 1
Frequency of Purchasing Rice

Frequency Number of respondents Percentage

Daily 204 51%
Once a Week 104 26%
Twice a Week 51 13%
Monthly 38 10%
Total 397 100%
 PRESENTATION OF DATA
Figure 2
Frequency of Purchasing Rice

10%
13%
EVERYDAY
51%
ONCE A WEEK
26% TWICE A WEEK
MONTHLY

Table 1 and Figure 2 illustrate that 51% of the

respondents buy rice every day; 26% once a week; 13% twice a
week; and 10% monthly. This is only shows that more than a
half of the population surveyed have purchase rice on a daily
basis while more than a quarter have consume and purchase rice
once a week
 PRESENTATION OF DATA
Table 2
Varieties of Rice Purchased
Varieties Number of respondents Percentage
Sinandomeng 204 51%
Angelica 59 15%
Dinorado 38 10%

NFA 38 10%
Jasmine 13 4%
Milagrosa 5 1%

Wag-wag 4 1%
Others 15 4%
(Ifugao, Maharlika,
Mindoro Rice, Malagkit,
Laon)
Total 397 100%
 PRESENTATION OF DATA
Figure 3
Varieties of Rice Purchased

NFA RICE
4% 1% 10%
1% 4% MILAGROSA
JASMINE
15% ANGELICA
51% DINORADO
SINANDOMENG
10% OTHER
WAG-WAG

Table 2 and Figure 3 shows that out of 397 respondents,

51% answered that Sinandomeng rice is what they commonly
purchased, 15% answered Angelica; 10% answered Dinorado
and NFA, 8% answered Jasmine; 4% answered others (Ifugao,
Maharlika, Mindoro Rice, Etc); 1% answered Wag-wag and
ilagrosa with 1%.
 PRESENTATION OF DATA

Table 3
Respondent’s Preferences as to Where They Will Buy Rice

Preferences Number of Respondents Percentage

Public Market 251 63%

Sari – Sari Store 116 29%

Grocery 21 6%

Supermarket 9 2%

Total 397 100%

 PRESENTATION OF DATA

Figure 4
Respondent’s Preferences as to Where They Will Buy Rice

2%

29% SARI-SARI STORE

GROCERY
PUBLIC MARKET
63% SUPERMARKET
6%

Table 3 and Figure 4 show that 63% of the

respondents usually purchase their rice at the Public market;
29% at the Sari - Sari store; 6% at the Grocery; and 2% at the
Supermarket
 PRESENTATION OF DATA

Table 4
Amount/ Quantity of Rice Purchased

Amount/ Quantity Number of Respondents Percentage

1 – 2 Kilos 158 40%

3 – 4 Kilos 55 14%

5 – 6 Kilos 59 15%

7 Kilos or more 125 31%

Total 397 100%

 PRESENTATION OF DATA

Figure 5
Amount/ Quantity of Rice Purchased

31% 40%
1 - 2 KILOS
3 - 4 KILOS
15% 5 - 6 KILOS
14% 7 KILOS OR MORE

Table 4 and Figure 5 illustrate that 40% of the

respondents preferred to buy 1 – 2 kilos of rice; 31%
preferred 7 kilos or more; 15% for 5 – 6 kilos of rice; and
14% for 3 – 4 kilos of rice
 PRESENTATION OF DATA

Table 5
Daily Consumption of Rice

Amount/ Quantity Number of Respondents Percentage

1 Kilo and below 161 41%

2 Kilos 144 36%

3 Kilos 69 17%

4 or more kilos 23 6%

Total 397 100%

 PRESENTATION OF DATA

Figure 6
Daily Consumption of Rice

1 KILOS AND BELOW

6%
17%
41% 2 KILOS

36% 3 KILOS

4 OR MORE KILOS

Table 5 and Figure 6 illustrate that out of the 397

respondents; 41% consumed rice at 1 kilo and below per day;
36% for 2 kilos per day; 17% for 3 kilos per day; and 6% for
4 or more kilos per day.
 PRESENTATION OF DATA

Table 6
Satisfaction with the Price of Rice Purchased

Satisfaction Number of Respondents Percentage

Yes 248 62%

No 149 38%

Total 397 100%

 PRESENTATION OF DATA

Figure 7
Satisfaction with the Price of Rice Purchased

YES NO

38%

62%

Table 6 and Figure 7 shows that out of 397

respondents; 62% answered that they are satisfied with the
price of rice they purchased while 38% answered no.
 PRESENTATION OF DATA

Table 7
Factors Considered in Choosing the Rice to be Purchased

Preference Number of Respondents Percentage

Price 83 21%

Quality 310 78%

Others 4 1%

Total 397 100%

 PRESENTATION OF DATA

Figure 8
Factors Considered in Choosing the Rice to be Purchased

1% 21% PRICE

QUALITY
78%

OTHERS

Table 7 and Figure 8 illustrate that out of the 397

respondents; 78% considered quality as the important factor
in choosing the rice to be purchased; while 21% chooses price
and 1% as the other factors.
 PRESENTATION OF DATA

Table 8
Willingness to Buy to a Newly-Opened Rice Dealer

Willingness Number of Respondents Percentage

Yes 371 93%

No 26 7%

Total 397 100%

 PRESENTATION OF DATA

Figure 9
Willingness to Buy to a Newly-Opened Rice Dealer

7%

YES NO
93%

Table 8 and Figure 9 illustrate that 93% of the

respondents are willing to buy to a newly-opened rice dealer
known as “R N’L Rice Enterprise” Located at Barangay
Potrero, Malabon; while 7% manifested that they are not
interested
 CHAPTER II
MARKETING ASPECT
I. MARKET DESCRIPTION

The market projection of the study is based on the surveys

conducted within the vicinity of Brgy. Potrero. Victoneta,
Malabon City. The purpose of the marketing study is to determine
the suitability of this business for profitable development, and to
define optimal products in accordance with the projected market
demand, and to project sales absorption and annual revenues

The researchers found out that there is a higher demand of

tice in Malabon Area. The business primary target markets are the
household, and the Sari-Sari stores. It shows that every
individual’s average consumption is 400 grams of rice per day.
(IRRI 2014)
II. DEMAND ANALYSIS
Table 9
Projected Demand for the Next Five Years

Year Market Target Average amount of Annual

Acceptability Population consumption per Demand
person daily (kilos)

2016 93% 42,284 400g 5,741,322

2017 93% 42,461 400g 5,765,355
2018 93% 42,640 400g 5,789,659
2019 93% 42, 819 400g 5,813,964
2020 93% 42, 999 400g 5,838,404
(Source: NSO Census Projected Population per Barangay Malabon City 2010-2020)
 DEMAND ANALYSIS

The table shows the projected demand of rice for the next five
(5) years beginning from 2016-2020. The market acceptability
was obtained from Table 8, which shows the willingness of
respondents to buy in a newly opened rice dealer in Brgy. Potrero,
Malabon. The target population is based on the projected
population of Brgy. Potrero, Malabon which was obtained from
the Department of Planning in the City of Malabon. To get the
annual demand, the formula is: Market Acceptability which is
93% multiplies by target population 42,284 multiplies by 400
grams (consumption of rice per person per day) then multiplies
again by 365 (no. of consumption in a year) then divided by 1000
grams (1000 grams = 1 kilo) to get the annual demand into kilos.
It indicates in this table that upon the annual increase of demand
the business is viable where it is established.
III. SUPPLY ANALYSIS

A. Competition Analysis
Table 10
Competitors Analysis

Competitors Average No, of Sacks No. of Operating Days

Sold Per Day per Year
Rio Rice Center 50 317

Barrera Rice Store 150 365

Source: Interview from the Personnel of Rio Rice Center, #25 Mac Arthur Highway
corner Victoneta Avenue. Potrero Malabon City; Barrera Rice Store, #34 Pineapple
Road, Potrero Malabon City
 COMPETITION ANALYSIS

Table 10 shows the data of the competitors average

number of sacks sold per day and no. of operating days
per year. The data was obtained from Mrs. Beng, a staff
of Rio Rice Center and a staff of Barrera Rice Store,
who was interviewed by Ms. A and Ms. B on August 14.
2015.
B. Supply for the Next Five Years
Table 11
Projected Supply for the Next Five Years

Year Year Year Year Year

Competitors 2016 2017 2018 2019 2020
No. of Kilos No. of Kilos No. of Kilos No. of Kilos No. of Kilos
Rio’s Rice 795,829 799,171 802,528 805,898 809,283
Center
Barrera’s 2,748,997 2,760,543 2,772,138 2,783,781 2,795,472
Rice Store
Total 3,544,826 3,559,714 3,574,665 3,589,679 3,604,755

Source: The proponents interview the sale staff of Rio Center and Barrera’s Rice Store.
 SUPPLY FOR THE NEXT FIVE YEARS

The table shows the Projected Annual Supply for the next five
(5) years. To get the Annual Supply, number of sacks traded daily
is converted to kilos (1sacks = 50 kgs.) multiplied by the
operation of days a year. The increase is based on the population
growth forecasted which is 1.0042 (NSO annual growth rate as of
2015). For Rio Rice Center, average no. of sacks sold per day is
50 kilos multiplied by 50 kgs per one (1) sack multiplied by 317
(no. of days per year) multiplied by 1.0042 to get the supply of
795,829 for 2016. For Barrera’s Rice Store, average no. of sacks
sold per day is 150 kilos multiplied by 50 kgs per one (1) sack
multiplied by 365 (no. of days operation per year) multiplied by
1.0042 to get the projected supply of 2,748,997 kilos for 2016 and
in the next succeeding years.
IV. DEMAND AND SUPPLY GAP ANALYSIS
Table 12
Projected Demand and Supply Gap Analysis for the Next Five Years

Year Annual Demand Annual Supply Gap/ Available

(Kilos) (Kilos) Market (Kilos)
2016 5,741,322 3,544,826 2,196,496

2017 5,765,355 3,559,714 2,205,640

2018 5,789,659 3,574,665 2,214,994

2019 5,813,964 3,589,679 2,224,285

2020 5,838,404 3,604,755 2,233,649

 DEMAND AND SUPPLY GAP ANALYSIS

Table 12 illustrate the Projected Demand Supply Gap

Analysis for the next five (5) years. It was obtained by
subtracting the Annual Demand to Annual Supply. The
Annual Demand for 2016 is 5,741,322 kilos less the Annual
Supply of 3,544,826 kilos which give the Available Market
or Gap of 2,196,496 kilos. It is necessary to determine the “R
N’L Enterprise” market share. The table illustrated that there
is an evident market gap readily available to be
accommodated by “R N’L Enterprise”
V. COMPETITIVE POSITION
A. Selling Price
Table 13
WHOLESALE
Varieties Rio Rice Center Barrera’s Rice Store RNL Enterprise
Sinandomeng P 1,950.00 P 1,950.00 P 1,950.00
Dinorado P 2,500.00 P 2,550.00 P 2,500.00
Angelica - P 2,150.00 P 2,100.00
Laon P 1,950.00 P 1,950.00 P 1,950.00
Jasmine P 2,650.00 P 2,700.00 P 2,650.00
Milagrosa - P 2,350.00 P 2,300.00
Maharlika P 2,600.00 - P 2,600.00
Ifugao Rice P 1,950.00 P 2,050.00 P 1,950.00
Mindoro Rice P 2,150.00 P 2,100.00 P 2,150.00
Malagkit P 4,100.00 - P 4,100.00
Wag-wag P 2,450.00 - P 2,450.00
NFA Regular - P 1,400.00 P 1,400.00
NFA Well - P 1,600.00 P 1,600.00
 SELLING PRICE

Source: Interview from the Personnel of Rio Rice Center, #25 Mac Arthur Highway
corner Victoneta Avenue. Potrero Malabon City; Barrera Rice Store, #34 Pineapple
Road, Potrero Malabon City

Table 13 shows the prices of rice per sack of Rio Rice

Center and Barrera’s Rice Store. It also shows the proposal
price per sack of “R N’L Enterprise”. The researchers
decided to use the going price rates. The business cannot go
lower than what is being offered by the competitors since a
price ceiling is also being implemented by the Government.
 Table 14
RETAIL

Varieties Rio Rice Center Barrera’s Rice Store RNL Enterprise

Sinandomeng P 39.00 P 39.00 P 39.00
Dinorado P 50.00 P 51.00 P 49.00
Angelica - P 43.00 P 42.00
Laon P 39.00 P 39.00 P 38.00
Jasmine P 53.00 P 54.00 P 51.00
Milagrosa - P 47.00 P 46.00
Maharlika P 52.00 - P 51.00
Ifugao Rice P 39.00 P 41.00 P 38.00
Mindoro Rice P 43.00 P 42.00 P 41.00
Malagkit P 82.00 - P 81.00
Wag-wag P 48.00 P 47.00 P 46.00
NFA Regular - P 27.00 P 28.00
NFA Well - P 32.00 P 32.00
 RETAIL

Source: Interview from the Personnel of Rio Rice Center, #25 Mac Arthur Highway
corner Victoneta Avenue. Potrero Malabon City; Barrera Rice Store, #34 Pineapple
Road, Potrero Malabon City

Table 14 shows the prices per kilo of Rio Rice Center

and Barrera’s Rice Store. It also shows the proposed retail
price of “R N’L Enterprise”.
B. Competitiveness of the Variety of Rice Offered
Table 15
Competitiveness of Product Offered
Rio Rice Center Barrera’s Rice Store RNL Enterprise
Sinandomeng Sinandomeng Sinandomeng
Dinorado Dinorado Dinorado
Laon Angelica Angelica
Jasmine Laon Laon
Maharlika Jasmine Jasmine
Ifugao Rice Milagrosa Milagrosa
Mindoro Rice Ifugao Rice Maharlika
Malagkit Mindoro Rice Ifugao Rice
NFA Regular Mindoro Rice
NFA Well Malagkit
Wag-wag
NFA Regular
NFA Well
 COMPETITIVENESS OF PRODUCT OFFERED

Source: Interview from the Personnel of Rio Rice Center, #25 Mac Arthur Highway
corner Victoneta Avenue. Potrero Malabon City; Barrera Rice Store, #34 Pineapple
Road, Potrero Malabon City

Table 15 shows the variety of rice offered by the

competitors. Based on this table, it only shows that “R N’L
Enterprise” offers more variety of rice as compared to Rio
Rice Center and Barrera’s Rice Store.
C. Promotional Activities
Table 16
Promotional Activities
Rio Rice Center Barrera’s Rice RNL Enterprise Frequency
Store

Tarpaulin Tarpaulin Tarpaulin Quarterly/ Year

------- Flyers Flyers 1 month/ Year

------- ------- Eco-Environment For the first 100

Bag customers/ Year

Source: Interview from the Personnel of Rio Rice Center, #25 Mac Arthur Highway
corner Victoneta Avenue. Potrero Malabon City; Barrera Rice Store, #34 Pineapple
Road, Potrero Malabon City

Table 16 shows the promotional activities of the competitors.

Rio Rice Center used only Tarpaulin, Barrera’s Rice Store used
Tarpaulin and Flyers while the “R N’L Enterprise” will use
Tarpaulin, Flyers and Eco-Environment bag.
VI. PROPOSED MARKETING PROGRAM
A. Description of Proposed Business

“R N’L Enterprise” is committed to offer high quality of rice

in a more effective manner that will deliver and complement value
on rice industry and to its consumers. R N’L Enterprise’s daily
transaction will be on a cash basis only
B. Description of the Target Market

1. GEOGRAPHIC
• Location Vitoneta Ave. Brgy Potrero,
malabon city
• Climate Dry
• Region NCR
• City Malabon City
• Density of the Area Urban
 2. DEMOGRAPHIC
• Age All ages
• Gender Male and Female
C. Proposed Promotional Strategy

Advertising and promotional programs are one of the

essential factors that the business should be care of
Popularity of one’s firm depends on how to introduce their
product into the market. It is important that management will
be able to get the attention of the potential buyers or
customers.
 Figure 10
Tarpaulin

Source: Trillions Tarpaulin Printing brochure Pricelist, Samson Road, Caloocan City,
August 2015
 TARPAULIN

This Promotional material will be used to expand the

exposure of the R N’L Enterprise. It will be posted to some
public areas to attract more potential customers

Two (2) posters will be produced which are good for

three (3) months. The durability of a tarpaulin will only last
(3) months, since the color and design of the tarpaulin will be
faded. The computation would be:

Unit Price x Number of pieces x Number of times per

year = cost
350x2x4 = Php. 2,400.00
 Figure 11
Flyers

Source: Trillions Tarpaulin Printing brochure Pricelist, Samson Road, Caloocan City,
August 2015
 FLYERS

R N’L decided to use flyers for their promotional

activities. These promotional flyers will be distributed to the
public to increase the popularity of “R N’L Enterprise”. The
flyers will be used for one month. “R N’L Enterprise” will
produce 100 flyers per week. These flyers will be distributed
once a week. The computation would be

Unit Price x Number of pieces x Number of times per

month = cost
.50x100x4 = Php. 200.00
 Figure 12
Eco - Bag

“R N’L Enterprise” will produce 100 pieces of Eco bag to be

given to the first one hundred (100) customers who will purchase
10 kilos of rice and above during the grand opening of “R N’L
Enterprise”. The computation would be:
Unit Price x Number of pieces = cost
10x100 = Php. 1000.00
VII. SWOT ANALYSIS
Strengths

• Accessible location because it is near the residential

areas.
• The business provides good and quality kind of
different types of rice
• Rice is one of the primary necessities of every
individual, household and food industries
• The business offered free delivery and affordable price

Weakness

• “R N’L Enterprise” is not yet known to the market

Opportunities

• Population increases so the demand of rice will also

increase
• Opportunity of the business to expand not only in
Malabon area.
Threats

• Entry of new competitors will lessen the market share

of the business.
• Natural calamities will affect the production of crops
• Farming cost increase and it affect the prices of product
in the market.
• Damaging diseases in rice.
 SUMMARY OF MARKETING ASPECT

The business is engaged in wholesaling and retailing of rice

located in Victoneta, Brgy. Potrero Malabon City. This aspect
presents the five (5) years demand and supply analysis of the “R
N’L Enterprise”. It also presents the potential market share and
gap analysis, projected rate and price range of the business.

Marketing aspect also shows the competitor’s analysis and

different strategies that they are using. It also discussed the
different promotional activities of the business such as tarpaulin,
distributing of flyers and giving of eco-bag to the first one
hundred (100) customers who will purchase a minimum of 10
kilos of rice and above on the grand opening. The business
strength, weakness, opportunities, threats were also discussed in
this chapter.
 CHAPTER IV
MANAGEMENT ASPECT
I. MANAGEMENT DESCRIPTION

Management is business and organizations is the

function that coordinates the efforts of people to accomplish
goals and objectives using available resources efficiently and
effectively.

The management aspect implies the clear and precise

identification of duties and responsibilities, flow of authority
and power level requirement. It must be set up for optimum
effectiveness. It also includes the type of business ownership,
the ornizational structure of the proposed business, the pre-
operating procedure as well as project schedule.
 MANAGEMENT DESCRIPTION

To achieve these, “R N’L Enterprise” management must

be able to plan all its activities for the company to become
productive and competitive for the survival of the business.
The success of any business depends heavily on the
effectiveness of management. This aspect will determine the
successful realization of the project study.

II. FORMS OF OWNERSHIP

The form of ownership to be adopted by “R N’L

Enterprise” is General Partnership with the Partnership name
Sativa Partnership.
 FORMS OF OWNERSHIP

Based on article 1767 of the New Civil Code of the

Philippines, “By the contract of general partnership, two or
more persons bind themselves to contribute money, property,
or industry to a common fund with the intension of dividing
profit among themselves”(http://www.philippinejustice.
com/partnership.htm). General Partner is one who
contributes money or property where Industrial Partner is
one who contributes a service to the business industry.
 FORMS OF OWNERSHIP
Table 17
Type of Partners, Contribution and Source of Capital

Partners Type of Partner Capital Source of

Contibution Capital
Edilaida Alcantara Capitalist/ P 330,000 Personal
Industrial Savings
Marian Bohol Capitalist P 330,000 Personal
Savings
Total P 660,000

Table 17 shows the type of partners, contributions and source of

capital. The type of partnership which they will enter is general
partnership. There are two (2) General Partners. There is one
capitalist and industrial/capitalist. Each of the partner contributed
three hundred and thirty thousand pesos (P330,000) from their
personal savings which leads to the total of six hundred and sixty
thousand pesos (P660,000) to their capital.
III. LEGAL REQUIREMENTS

The following are the registration requirements in order

to operate a business legally:

• Securities and Exchange Commission Certificate issued

by the Security and Exchange Commission (SEC)
• License to operate issued by the National Food Authority
(NFA)
• Certificate of Registration of Business Name issued by
the Department of Trade and Industry (DTI)
• Barangay Permit
• Permit and License to operate from Mayor’s Permit
 LEGAL REQUIREMENTS

• Bureau of Internal Revenue (BIR) Number and

Partnership’s Tax Identification Number
• Social Security System (SSS) Certificate of Membership
• Department of Labor and Employment (DOLE)
• Home Development Mutual Fund (HDMF)
• Phi Health Employer Number and Certificate
• Lease of Contract
• Safety and Fire Permit
IV. MANPOWER REQUIREMENTS

A. Organizational Chart
Figure 13
Organizational Chart

INDUSTRIAL PARTNER

STAFF STAFF

Figure 13 indicates the position of employees in the

organizational structure of the business.
B. Hiring Process
Figure 14
Hiring Process
Position of hiring vacancies

Investigation of precious history

Final Interview

Submission of requirements
 HIRING PROCESS

Figure 14 displays the process of hiring procedure of “R

N’L Enterprise”. The posters informing the public that the
newly opened business is in need of qualified employees.
The second step is the acceptance of applicants in which
includes accepting their resume. Next is the investigation of
previous history of the applicants to check the applicants
profile and background. If the applicant is qualified he will
undergo the final interview and then followed by the
submission of requirements. After all requirements are being
submitted the applicant is hired and will start with the work
he applied for.
 C. WORK SCHEDULE
Table 18
Employees Schedule
Position Monday-Sunday Meal Time Break

Supervisor 8:00 am – 5:00 pm 1 hour

(Industrial Partner)
Sales Staff 8:00 am – 5:00 pm 1 hour

Table 18 displays the working schedule of all its employees.

Each of them will be given one (1) hour meal time. They are
required to work from Monday to Sunday from 8:00 am – 5:00
pm. In case one of the Sales Staff decided to go on a day-off; the
industrial partner/supervisor will cover for the said staff on the
said day
 D. WAGES AND BENEFITS
A. BASIC WAGE RATE
Table 19
Monthly and Annual Salary of Employees
Designation Daily Rate/ Monthly Annually
Individual
Supervisor P 600.00 P 18,000 P 216,000

Sales Staff (2) P 481.00 P 28,860 P 346,320

Total P 48,860 P 562,320

Table 19 indicates the monthly and annual salary of

employees. Salaries will be given to the employee on the 15th and
30th day of the month.
 B. Mandatory Benefits

13th month pay

The 13th Month Pay Law of 1987 defines 13th month pay
as “1/12 of the basic salary of an employee within a calendar
year.” (http://www.negroschronicle.com/)

SSS Benefit

“R N’L Enterprise” will pay the employer share to the

SSS contribution, while the share of the employee will be
deducted from their monthly salary
 Phil Health

The Philippine Health Insurance Program was established to

provide health insurance coverage and ensure affordable,
acceptable, available and accessible health care services for all
citizens of the Philippines. It shall serve as the means for the
healthy to help pay for the care of the sick and for the care of the
sick and for those who can afford medical care to subsidize those
who cannot (http://www.philhealth.gov.ph/about_us/mandate.html)

Pag-ibig

It offers its members a housing program, savings and multi-

purpose loan. Membership to pag-ibig fund is voluntary if monthly
basic rate is less than P 4,000.00
C. EMPLOYEE UNIFORM
Figure 15
Uniform Lay-out

Figure 15 shows the uniform to be used by the employees.

 D. OPERATING HOURS
Table 20
Operating Hours

Days Designation Time

Monday – Sunday All Employees 8:00 am – 5:00 pm

Table 20 presents that “R N’L Enterprise” will be open 8:00

am and will be close at 5:00 pm from Monday to Sundays.
 V. PROJECT SCHEDULE GANTT CHART
Figure 16
Gantt Chart

Activities 2015 16
Oct Nov Dec Jan
1 2 3 4 1 2 3 4 1 2 3 4
Putting up capital
Registration of Permits
Plant Site Acquisition
Improvement of facilities
Canvass of Equipment & Supplies
Purchasing of Supplies
Employees Hiring & Training
Start of Business Operation
 PROJECTED SCHEDULE GANTT CHART

Figure 16 indicates the project time table of the business.

Putting up of capital will be conducted on the first week of
October. Processing of legal requirement, this normally takes 3
to 4 weeks, conducted on the second week of October up to the
first week of November. Plant site acquisition starts third week
to last week of October. Improvement facilities will be
conducted on first week to second week of November.
Canvassing of equipment and supplies on the third week of
November. Purchasing of supplies conducted on the last week
of November until second week of December. Hiring and
training of employees conducted on the 3rd week to last week
of December together with the advertising of product such as
tarpaulin and flyers. The business operation will start on the 1st
week of January, 2015.
 SUMMARY OF MANAGEMENT ASPECT

“R N’L Enterprise” is a business engage in rice dealership.

This form of ownership is General Partnership. The pre-operating
procedures shows the different steps to be followed in putting up a
business such as planning, business registration, securing of
permits needed in order to operate legally. It also contains an
organizational chart which shows the positions that are needed by
the “R N’L Enterprise”. The hiring procedures indicate the types
of employees to be hired in accordance to the job specification.
The duties and responsibilities that the company requires have
been discussed also. The standard operating schedule is also
imposed to make sure that all employees must comply there with.
The employees will get the minimum wage and other employment
benefits provided under the Minimum Wage Law and other
related mandatory Laws. “R N’L Enterprise” will be open from
Monday to Sunday, 8:00 am to 5:00 pm.
 CHAPTER V
FINANCIAL ASPECT
I. FINANCIAL DESCRIPTION

The financial aspect presents the financial statues of the

business. The financial aspect will discuss the following
components to wit: statement of financial position, statement
of income and statement of changes in partner’s equity,
statement

II. FINANCIAL ASSUMPTIONS

• The partners will contribute P660,000.00 and the

initial cost to establish the business is P519,676.25
 FINANCIAL ASSUMPTIONS

• Sales are increased to 10% every year based on the

market growth rate.
• Sales are per wholesale and retail.
• Profits and losses are divided equally for 5 years.
• Utilities expense will increase 5% every year.
• The assets will be depreciated using straight line method.
• Salaries expense and staff benefits will increase 8%
annually.
• Supplies expense will also increase by 2% annually.
• All sales are cash sales.
• Purchases are 50% cash and 50% on account. Payment of
the 50% on account will be on the following month of
purchase
 FINANCIAL ASSUMPTIONS

• The business maintains a petty cash fund of P 1,500.00

monthly.
• P 110,000 will be the drawings for the first and second
year of operation. The partners will withdraw P 110,000
for the third year. For the fourth year partners will
withdraw P 203,500 and for the fifth year they will
withdraw P 275,000 each.
• RNL enterprise is subject to 30% tax.
• Delivery Expense are increased 10% every year.
• Advertising Expense are increased 2% every year.
 FINANCIAL ASSUMPTIONS

Initial Capital P 660,000.00

Pre operating cost 7,500.00
Working Capital Expenditure
Store Equipment 24,772.00
Delivery Equipment 40,000.00
Office Equipment 24,475.00
Furniture & Fixture 3,199.00
Inventories
Office Supplies 911.75
Maintenance Supplies 2,928.50
Packaging Supplies 3,000.00
Inventory 268,940.00 368,176.25
Rental 144,000.00
Total 519,676.25
 RNL ENTERPRISE
Schedule of Partnership Capital

Names of Partners Amount

A P 330,000
B P 330,000
Total P 660,000
 RNL ENTERPRISE
Schedule of Pre-operational Cost

Particulars Amount
SEC 2,934
Fire and Safety Permit 450
Mayor’s Permit 650
Barangay Permit 300
Electrical Inspection Clearance 400
Sanitary Permit 1,000
Document Stamp 500
Notarial Fees 500
Books and OR’s 500
Transportation 180
Others 86
Total 7,500
Payback Period
Year Annual Cach Flow Cash to date Payback Period
1 3,536,252.65 660,000 0.19 years
2 3,854,202.92
3 4,234,980.73
4 4,675,561.37
5 5,176,393.85

Total
Initial investment 660,000
divide: Annual Cash flow
Year 1 3,536,252.65

0.19 Years
 RNL ENTERPRISE
Projected Statement of Income
For the years ended December 31, 2016-2020
2016 2017 2018 2019 2020
Revenue 49,355,253.44 54,290,778.78 59,719,856.66 65,691,842.32 72,261,026.56
Cost of Sale 45,692,597.22 50,261,856.94 55,288,042.64 60,816,846.90 66,898,531.59
Gross Profit 3,662,656.21 4,028,921.83 4,431,814.02 4,874,995.42 5,362,494.96
Expenses
Salary Expense 470,784.00 508,446.72 549,122.46 593,052.25 640,496.43
Staff Benefits 89,818.00 97,003.44 104,763.72 113,114.81 122,196.40
Rental Expense 144,000.00 144,000.00 144,000.00 144,000.00 144,000.00
Utilities Exp. 43,788.00 45,977.40 48,276.27 50,690.08 53,224.59
Delivery Exp. 18,000.00 19,800.00 21,780.00 23,958.00 26,353.80
Advertising Exp 5,803.00 5,916.06 6,037.44 6,158.19 6,281.35
Depreciation 9,239.60 9,239.60 9,239.60 9,239.60 9,239.60
Other 7,500.00 - - - -
Sub Total 788,932.60 830,386.22 883,219.48 940,242.94 1,001,792.17
EBIT 2,873,723.61 3,198,535.61 3,548,594.53 3,934,752.48 4,360,702.79
Tax 862,117.08 959,560.68 1,064,578.36 1,180,425.74 1,308,210.84
Net Profit 2,011,606.53 2,238,974.93 2,484,016.17 2,754,326.74 3,052,491.95
 RNL ENTERPRISE
Projected Statement of Income
For the years ended December 31, 2016-2020

2016 2017 2018 2019 2020

Beginning 660,000.00 2,561,606.53 4,690,581.46 6,954,597.63 9,301,924.37
Capital
Add: 2,011,606.53 2,238,974.93 2,484,016.17 2,754,326.74 3,052,491.95
Net Income
Drawings (110,000.00) (110,000.00) (220,000.00) (407,000.00) (550,000.00)

Ending Capital 2,561,606.53 4,690,581.46 6,954,597.63 9,301,924.37 11,804,416.32

 RNL ENTERPRISE
Projected Statement of Financial Position
December 31, 2016-2020
2016 2017 2018 2019 2020

Asset

Current Asset

Cash 3,536,252.65 3,854,202.92 4,234,980.73 4,675,561.37 5,176,393.85

Inventory 107,576.00 172,121.60 210,848.96 240,539.94 268,036.36

Office 929.99 948.58 967.56 986.91 1,036.25

Supplies
Maintenance 3,074.93 3,228.67 3,390.10 3,559.61 3,737.59
Supplies

Packaging 3,150.00 3,150.00 3,307.50 3,646.88 3,828.84

Supplies

Total 3,650,983.56 4,033,809.27 4,453,660.23 4,924,294.35 5,453,032.90

Current Asset
 2016 2017 2018 2019 2020

Fixed Asset

Machinery and 24,722.00 24,722.00 24,722.00 24,722.00 24,722.00

Equipment
Accumulated (2,472.20) (4,944.40) (7,416.60) (9,888.80) (12,361.00)
Depreciation
Furniture And 3,199.00 3,199.00 3,199.00 3,199.00 3,199.00
Fixture
Accumulated (319.90) (319.90) (319.90) (319.90) (319.90)
Depreciation
Delivery 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00
Vehicles

Accumulated (4,000.00) (4,000.00) (4,000.00) (4,000.00) (4,000.00)

Depreciation

Office 24,475.00 24,475.00 24,475.00 24,475.00 24,475.00

Equipment

Accumulated (2,447.50) (2,447.50) (2,447.50) (2,447.50) (2,447.50)

Depreciation

Total Fixed 83,156.40 73,916.80 64,677.20 55,437.60 46,198.00

Asset
 2016 2017 2018 2019 2020

Other Asset

Security 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00

Deposit- rent
Total Assets 3,758,139.96 4,131,726.07 4,542.337.43 5,003,731.95 5,523,230.90

Liabilities and
Partner’s Equity
Current Liabilities

Accounts 183,866.35 229,832.94 287,291.17 359,113.96 448,892.46

Payable.
SSS Payable 2,504.00 2,504.00 2,504.00 2,504.00 2,504.00

Phil Health 400,00 400,00 400,00 400,00 400,00

Payable
HDMF Payable 300.00 300.00 300.00 300.00 300.00
Salaries Payable 18,746.00 20,995.52 23,514.98 26,336.78 29,497.19
Utilities Payable 18,600.00 19,158.00 19,732.74 20,324.72 20,934.46
Income Tax Pay. 862,117.08 959,560.68 1,064,578.36 1,180,425.74 1,308,210.84
Total Current Lia. 1,086,533.43 1,232,751.14 1,398,321.25 1,589,405.21 1,810,738.95
 2016 2017 2018 2019 2020
Total Partners 660,000.00 660,000.00 660,000.00 660,000.00 660,000.00
Equity
Retained 2,011,606.53 2,238,974.93 2,484,016.17 2,754,326.74 3,052,491.95
Earnings
Total Equity 2,671,606.53 2,898,974.93 3,144,016.17 3,414,326.74 3,712,391.95

Total Partner’s
Equity and 3,758,139.96 4,131,726.07 4,542.337.43 5,003,731.95 5,523,230.90
Liabilities
 CHAPTER VI
SOCIO - ECONOMIC ASPECT
CUSTOMERS

The business will help to provide our customers with the largest
selection of rice varieties available at a competitive price in a
friendly and timely manner and be able to sustain the basic need of
the customer by providing them the best quality rice.

EMPLOYEES

The business will comply with the labor laws and standards to
protect the welfare and interest of its employees.

ECONOMY

The business will help to stimulate economic growth by

providing employment opportunities
 SOCIO - ECONOMIC ASPECT

GOVERNMENT

The business will help by having more businesses, it can boost

tax income for both national and local governments, bringing in
more money to repair roads, develop schools and improve public
services.

GROWTH OF RELATED INDUSTRY

The proposed business will inspire businessmen to engage in the

same line of business because rice is a staple food and they can
figure out that the business will become attainable due to increasing
number of population and there will be a great contingency that the
demand of rice usage will also increase.
 CONCLUSION
On the basis of the research conducted by the proponents of this
study, the following conclusion are stated

“R N’L Enterprise” ensures that the company’s objectives,

policies and orders are effectively implemented to its employees in
order to achieve its goals

“R N’L Enterprise” will maintain good quality of rice to offer to

its customers.

“R N’L Enterprise” should maintain a level of cash deemed

sufficient to finance the business expenses and need

“R N’L Enterprise” should always perform its social

responsibility towards to the employees, customers, competitors,
environment, community, government and economy