CHAPTER I

PROJECT SUMMARY
Introduction
This chapter provides the name of the enterprise, location of the business, logo of
the enterprise and the business vision and mission. It also presents the descriptive
definition of the project which consist the related national program, affinity to regional or
sectorial program and the project potential and proponents. It also shows the projects long
range objectives in ten years time, the feasibility criteria and highlights of the project.
The highlights of the projects includes the history of the enterprise, the project time table
and the status which shows and explain when the enterprise started its operation, the
nature of industry ,and the mode of financing as well as the investment cost of the
project. This chapter also includes the major assumptions, summary of findings and
conclusions.
A. Name of the Enterprise
The name of the enterprise that the proponents have come up with is MAC
Lemon Enterprise. The name MAC is basically derived from the first letter of the last
names of the proponents, Macaranas(M), Apostol(A), and Cabatic (C), since they would
be the owner and operators of the so-called business. The Lemon represents the product
of the enterprise and continuity of the business. The Enterprise is simply the chosen
term by the proponents to show that it is a venture. The partnership came up with this
name because they want the enterprise to show unity in achieving objectives for the
enterprises growth.
A. B. Logo of the Enterprise

B.
C.
D.
E.
F.
G.
H.
I.
J.

L.

K. Figure 1
The logo contains yellow hexagon shape with smiley face. Yellow is

dominant in the logo because it represents fresh, honor, loyalty and attracting attention.
The proponents put a smiley face on it which symbolizes that the product is healthy and
good for everyone.
M.
The right hand is in thumbs up sign because it indicates approval and
willingness to accept the product. The left hand is holding a lemon grass because it
represents the proponents primary raw material in making the product and a tight bond to
the proponents customers and suppliers. The green color represents Health, Healing,
Trust, and Harmony of the nature. The White means safety and cleanliness which means
the proponents product can be used by all.
N.
The rectangle symbolizes stability. It is a trusted familiar shape that
represents honesty, solidity and stability. Rectangles have straight lines and right angles
for balanced and equality in treating every customers.
O. C. Location of the Enterprise
P.

The proponents decided that the enterprise would be located at the Block 6

Lot 21 Bougainvillea St. Ciudad Grande Phase 1, Bakakeng Norte, Baguio City. This
location would be a good manufacturing site because the place is accessible and it is only
one-way ride to the market for the purchasing of ingredients.

Q. D. Vision
R.

The enterprise envisions as one of the best manufacturer and distributor of

moisturizer/lotion that would be competitive in the market promoting and patronizing the
use of lemongrass as its main ingredient. Also, for the enterprise to be able to produce an
organic lotion that will ultimately become the most in demand moisturizer repellent
product.
S. E. Mission
T.

The MAC Lemon enterprise aims to provide our customers with insect

repellent and moisturizing lotion that is of high quality and promote awareness of the
advantages of utilizing the repellent and moisturizing lotion which can satisfy the
consumers beyond their expectation at a reasonable price.
U. F. Descriptive Definition of the Project
V. 1. Related National Program
W. A. Entrepreneur Trainings for SMEs
X.

The training and entrepreneurship development programs by

Department of Trade and Industry seeks to provide existing and potential

entrepreneurs with necessary skills and knowledge to become competitive players
in the local or global market. It also seeks to create a pool of SME trainers,
advisors and counselors who can effectively assist SMEs nationwide.
Y.

This program promotes competence among entrepreneurs to

discover their skills and potentials. Since the enterprise is under SMEs this
program the proponents will join in the trainings in order to innovate more on

their products and they will also be trained to competitive entrepreneurs in the
market.
Z. B. Youth Entrepreneurship Society Philippines
AA. The Young Entrepreneurs Society Philippines (YES) is an
organization of young entrepreneurs who share a common passion for excellence
in business and professional growth. YES Philippines was established to promote,
and develop aspiring and successful entrepreneurs. YES aims to stimulate interest
in entrepreneurship among its members and encourage them to be passionate
about building sustainable venture. It also strives to provide its members with a
lifelong learning and a support platform to minimize risks and to maximize
success in their business ventures.
AB. The proponents of this study aims to adhere this program by being
a member of it so that they could cooperate with other members of the program. It
would provide an experience for the proponents so that they could build a
foundation for the success of their future. It would also be a convenient way to
establish connections with other aspiring entrepreneurs.
AC.
C. Hands-On Livelihood Training
AD. Fully committed to meet the practical technology needs of micro,
small and medium enterprises, the TRC regularly conducts various types of
hands-on and personalized training programs. Individual entrepreneurs visit the
TRC daily to train in one of over a hundred in-demand business courses that they
can choose. The TRC training team, however, is always ready to implement
specialized training requirements of its corporate and institutional clients,

including the subsidized livelihood programs of various Local Government Units

(LGUs) all over the country.
AE. Attending trainings and learning new things would have great
benefits for the enterprise and to be more flexible. The enterprise will be sharing
new ideas to other aspiring entrepreneurs for them to have a first step to be
successful.
AF.
AG.
D. Youth Entrepreneurship Program (YEP)
AH. YEP provides a unique combination of trainings and seminars
aimed at young people between the ages of 14 and 27. YEP is diverse in its
outreach and delivery methods, with websites, blogs, and social networking sites,
virtual reality games, youth-oriented trainers and business simulation products all
designed to teach business management, finance, marketing, sales and ecommerce skills. The ultimate desired outcome for YEP is to have young people
more interested in self-employment as a career option. Through YEP projects,
students will also garner transferable business skills for both self-employment and
the job market, understand the relevance of education and choose to stay in school
or pursue higher education, and develop life management and problem solving
skills.
AI.

The enterprise comprises of young entrepreneurs who are starting

to learn new skills with the help of YEP trainings and seminars the enterprise will
be more ready and knowledgeable to be a competitor.
AJ.
AK.

E. Small Enterprise Technology Upgrading Program

AL.

The Department of Science and Technology (DOST) of Cordillera

Administrative Region (CAR) launched the Small Enterprise Technology

Upgrading Program (SETUP) in response to the call for more focused programs
of assistance for Small and Medium Enterprises (SMEs). SETUP is a nationwide
strategy to encourage and assist SMEs to adopt technological innovations to
improve their operations thus boosting their productivity and competitiveness.
AM. The proponents adhere to this program by being a member so that
the production of goods will be more efficient and resources would be maximized.
With the help of this program, juice processing will be easier and the outcome
will have more in quantity and better in quality.
AN.

F. SME Roving Academy Cordillera

AO.

The Department of Trade and Industry of Cordillera launched the

Small and Medium Enterprise (SME) Roving Academy in order to improve

competitiveness of Micro, Small and Medium Enterprises (MSMEs) in the local
and international market. This is a management training program for would-be
entrepreneurs, SME owners and managers of micro and small to medium sized
businesses. The initiative is meant to provide continuous learning program for
entrepreneurs to help them better set up and step up their operations and improve
their competitiveness, thereby facilitating easier access to domestic and
international markets. The trade official informed that the Academy will serve as
mobile learning institute for SMEs by integrating business development and
advisory services at the local and national levels. Business modules in the early

stages of an enterprises journey in starting, growing, and exporting will be

developed to the requirements of local entrepreneurs.
AP.
MAC Lemon Enterprise would adhere to this program by being a
member so that the beginning operations of the enterprise would be handled and
managed carefully. Since this program provides training for would-be
entrepreneurs, it would be beneficial for the proponents and it would serve as a
guideline in conducting business.
AQ.

2. Affinity to Regional or Sectoral Studies

AR.

A. Micro-Entrepreneurship Program
AS. The program is pushing for the city Governments support for

micro-entrepreneurship endeavors. The City Offices such as the City Social

Welfare and Development Office, the Education Department, and the Baguio
Health Department have established their own trainings and support programs for
micro-entrepreneurship while the proposed ordinance appropriates an annual
budget of 5 million pesos.
AT.
This program is very relevant to the enterprise because the
proponents cannot assure that they can come up with the required initial capital
from their own savings and borrowings, they need some financial support to start
the business.
AU.
B. Regional Development Agenda
AV. Guided by the principle of sustainable development, economic
integration, decentralization, private-public partnership, the RDAs takes off from
existing planning documents such as the National Framework for regional
development and regional physical framework plans. It also articulates the
regions highest priorities based on inter sectorial and inter are analysis of the

region and guided by the desired scenario. The essential and primary ingredient in
which include the development strategies, challenges and preconditions to achieve
the regional development agenda are highlighted.
AW. The principle of this program is for sustainable development in
regions and in relation of to the proponents business, they are able to help the
region because they are the first to introduce Lemongrass Insect Repellent and
Moisturizing Lotion in the market. Baguio City can also be known by this unique
market.
AX.
C. Technology and Livelihood Education Skills Development
AY.
Technology and livelihood education skills development is an on-going
activity of TESDA-Benguet sustained. This is to enhance and complement the
learning competencies of the life skills training and career enhancement program
of Technology and Livelihood.
AZ.
MAC Lemon Enterprise adheres to this program to have the
knowledge in producing a quality product that will be patronized by the people
and be able to attain its goals. The owners and workers of the enterprise will join
seminars that will be conducted by them to enhance their skills and learning
capability.
BA.
3. Project Potential and Proponents
BB. Insect repellent and moisturizing lotion is one of the products that
are now needed for the emerging size of insects and mosquito diseases. Because
of such issues, the proponents decided to start a line of business that offers an
innovated product of Lemongrass insect repellent and moisturizing lotion.
Certainly, people around the world will need such products in order for them to
not have problems in the future.

BC.

The MAC Enterprise has a possibility that clients would want to

buy and to try the said product given that the business will put up with the
intention to produce a high quality and at the same time cheaper products. The
said product would be a way for the customer to have a lesser outflow of money
from their pockets. The product will save time for the consumers because it is
easy to use and it is mess-free.
BD. The proponents of this feasibility study are Tristan Kim B. Apostol,
Leo Joseph G. Cabatic, and Danica Faye M. Macaranas.
BE.
G. Projects Long Term Objectives
BF.
In ten years time, MAC Lemon Enterprise expects to achieve the
following long term objective:

MAC Lemon Enterprise aims to cover a wider market in the next 10 years. Providing a
safe and skin-benefiting lotion as they help in the national program that is to live a
healthy life and also to help the government in minimizing the case of mosquito and

insect-carrying diseases.
To be able to put up an additional production areas in Baguio and in La Trinidad, and also
to be able to put up a kiosk in Porta Vaga, because it has a lot of potential customers that

will purchase the proponents product.

To be able to expand the proponents production area into at a larger area and to provide
additional machines in producing the product.
BG.

H. Feasibility Criteria
BH. In order for the proponents to know if the product of the project is

feasible there are guidelines and criteria to be considered. The first criteria in
finding out whether the product is feasible is that of the profitability, if the project
can provide profit which will cover the expenses used for capitalization and if the

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return on investment can return the paid up capital. The enterprise also considers
the economic status of the City because this would have great effect to our price
and production.
BI.
Marketability is also a key factor in determining whether it is
feasible or not, they see that Filipinos always buy products that can greatly benefit
them and they see this as an opportunity for the enterprise, because the product is
new to the market and most people will have the curiosity and therefore it will
attract more customer and will be known to the public.
BJ.I. Highlights of the Project
BK.
1. History
BL.
The enterprise has sprung during the deliberation process of the
proponents on whether they absorb their available resources at the same time
having an outlet for the skills and talent they acquired. The proponents had a lot
of suggestions and also rejections, but after that, the proponents camp up with an
idea, and it is to engage the idea that promotes lotion and lemongrass. The group
decided to create an insect repellent and moisturizing lotion with Lemongrass that
served as the primary ingredient.
BM.
2. Project Time Table and Status
BN. Timeline is an integral part in conducting a feasibility study. It is
one way to help the proponents in organizing or setting their activities.
BO.
a. Conducting Feasibility Study (January 2016 March 2016)
BP.
The researchers were given only two (2) months to conduct their
study and know if the product will be possible to be introduced in the market.
BQ.
b. Procurement of Funds (February 2016 March 2016)
BR.
The proponents of the MAC Lemon Enterprise provides funds that
will reach the
BS.target capital which is Php 75,000. Each partners will contribute Php 25,000 and
has two (2) months to fulfill the needed amount for the business.

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BT.c. Securing and Accomplishing Legal Requirements (April 2016 May 2016)
BU.
The proponents will settle all the requirements needed for the
business such as the Mayors Permit, Sanitary Permit, Registration, Business
Permit and other legal papers that are needed in order for the business to operate
well.
BV.

d. Purchasing of Equipment, Tools and Implements (Last Two Weeks of

May 2016)
BW.

The proponents will need to purchase the equipment, tools and

implements required for the production of the product in two (2) weeks to assure
that the necessary things are ready for the operation of the business.
BX.
e. Hiring and Orientation of Employees (June 2016)
BY.
The proponents will allot one (1) month to hire employees before
the commencement of business operation and at least the proponents can instruct
and orient the selected workers.
BZ.
f. Commencement of Business (July 2016)
CA.
The MAC Lemon Enterprise will start to operate in the first week
of July of the year 2016.
CB.
3. Nature of Industry
CC. MAC Lemon Enterprise belongs to the beauty industry. Beauty
Industry is one of the most profitable industries in the country. Being in line in
this kind of industry, the enterprise will be competitive because of the different
kind of beauty products present in the market. With the new product introduced in
the market, the proponents will double the effort in producing the product so that
it will have an edge over its competitors.
CD.
4. Mode of Financing
CE.
The proponents decided to contribute Php 25,000.00 each which
will complete the total capital which is Php 75,000. With the help of the family,

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friends and relatives of the proponents, the total fund needed for the operation will
be complete.
CF.5. Investment Costs
CG.
The approximate cost to start the operation of the business is Php
180,000. Each of the proponents will contribute Php 25,000.
CH.
J. Major Assumptions and Summary of Findings and Conclusions
CI. 1. Market Feasibility
CJ.
The product made by the proponents is an insect repellent and
moisturizing lotion. The viscosity of the Lemongrass Insect Repellent and
Moisturizing Lotion is similar to that of the lotion and a moisturizer, both viscous
and at the same time watery. It has the color of a green and a pale yellow
substance because of the oil that the proponents used. Lemongrass plays an
important role in the scent of the product because it easily blended with the other
ingredients having a dominant lemongrass scent. The major consumers are any
individuals of Baguio City who would be willing to purchase the product. The
proponents floated 400 questionnaires to the individuals of Baguio City to
determine the needs and wants of the target market and to know whether they are
willing to buy the proposed product. The proponents found out that 349 out of
400 or 87.25% are willing to try the product while 51 out of 400 or 12.75%
answered no. The proponents computed for the standard deviation using the four
methods of projection and the Statistical Parabolic Line Method gave the lowest
degree of standard deviation. Thus, this is the method that the partnership used to
project the future demand of the project.
CK. The proponents are able to satisfy 0.0623% of the unsatisfied
demand of the first year of operation, 0.0667% of the second year, 0.0715% of the

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third year, 0.0768% of the fourth year and 0.0851% for the fifth year of operation.
The existing competitors offer their products in the market in 6 ml, 50ml and 100
ml with the average price of Php 6.50, Php 81.00, and Php 149.50 respectively.
Based from the production cost that was computed, the enterprise will be selling
the Lotion at a price of Php 78.00. The proponents will do their best efforts for the
product to be recognized and to be more competitive. The proponents see that the
product can be possible in the market and give and edge on taking over the target
market. With the help of advertisement by word of mouth and creating a
Facebook Page, Twitter and Instagram Accounts, Lemongrass Insect Repellent
and Moisturizing Lotion will be known.
CL.
2. Technical Feasibility
CM.
The Lemongrass Insect Repellent and Moisturizing Lotion must be
made with the assurance that it is clean and safe. MAC Lemon Enterprise belongs
to the beauty industry. The enterprise will produce 50 pieces of Lemongrass Insect
Repellent and Moisturizing Lotion every day. The daily operation is 8 hours a day
including a meal period after 4 hours of work. The enterprise will be open from
Mondays to Saturdays and Sundays will be their rest day. The enterprise will have
144 operational days for the first year and 288 days on the succeeding years. It
will open at eight (8) in the morning and will close five (5) in the afternoon. The
enterprises production area is located at Block 6 Lot 21 Bougainvillea St. Ciudad
Grande Phase 1, Bakakeng Norte, Baguio City. The proposed location is
surrounded by boarding houses with large of residents and students. The raw

14

materials needed to produce the Lemongrass Lotion will be purchased every day.
There will be two (2) workers to facilitate the production of the product.
CN.
3. Financial Feasibility
CO.
The enterprise assesses the financial aspect of their business for
them to know if the business is going to be profitable and could operate for a long
span of time. The total investment cost of the enterprise is Php 75,000. Each of
the partners will be having a contribution of Php 25,000. The net income for the
first year of operation is Php 31, 525.27 and Php 183,698.10 on the second year
CP.

and is expected to increase as the business continues to operate.

Based on the financial statement analysis, the enterprise will be able to
recover its initial investment of Php 75,000 after 1 year and 2 months. The
schedules and notes are also presented to serve as a supporting computation of the
income statement. Computed ratios shows that the enterprise becomes more
efficient as it continues to operate and that the enterprise is solvent where it is able
to meet its obligations. As the sales of Lemongrass Lotion every year increases,

there is also an increasing capability of the enterprise to raise its finances.

CQ.
4. Socio-Economic Feasibility
CR. The objective of almost every business does not only aim profit
maximization but also for contributing in the development of the society and in
Economic growth. The MAC Lemon Enterprise plans to provide the community
what they need such as giving a more harmless environment, giving employment
to those who are not employed and lastly to earn extra income.
CS.
CT.

The enterprise affects its competitors because they make them improve the
quality of the product they make and become competitive. The enterprise directly

15

affects their suppliers or the local market by means of persuading them to increase
their capacity to produce ornamental and herbal plants.
CU.
5. Management Feasibility
CV. The reason behind the achievement of a business is the proper
management in its organization. The staffs are one factor that contributes toward
the success of the enterprise. Employees are hired based on their skills and
abilities. MAC Lemon Enterprise will be managed by its partners. Partners will
hire two (2) workers as the ones who will be monitoring the production of the
product. The form of ownership of the business is partnership it is a limited type
of partnership where partners can only be liable up to their contribution in the
business since, the proponents are still students, they still cannot afford to support
the enterprise with their personal assets. Another is they also do not have enough
personal assets or properties that they may share in case of insolvency if they are
in the general partnership. They will impose and implement rules and regulations
not only to its employee but also to the partners to achieve its goals, vision and
mission, thus, the partners will put up rules and regulations that would best fit the
whole enterprise.
CW.

DC.
July

DD. DE.

DF.

DG.

DH.

EQ.
April

DW.
May

DM.
June

DS.

FA.
March

DB.

DA.

DI.

FU.
FK.
January February

CZ. CY.

CX.
Gantt Chart

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DN. DO.

DP.

DZ.
DX. DY.

ER. ES.

FB. FC.

EJ.

ET.

FD.

DQ.

DR.
EC.

EA.
EB.
EK.

EW.
EU.

FE.

EV.
FG.
FF.
FQ.

FL. FM. FN.

FO.

FP.

FV. FW. FX.

FY.

FZ. GA.

GG.
Purchasing of Equipment, Tools and
Implement

GI.

GH.

GF.
Securing and Accomplishing Legal

GE.
Requirements

GJ.

GD.

GC.
Activities

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