A feasibility study on the production and marketing of car shades (Essenshade Corporation)

• Main Authors: Carino, Ryan Bincent T.G., Chua, Aaron, Cruz, Julie Ann G., Villarroel, Michelle Marie Therese S.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16667
• Institution: De La Salle University

Cars are an investment and a necessity at the same time. This is why for car owners, maintaining the efficiency of the engine and the appearance of their cars inside and out is very important. Keeping this in mind, the proponents have taken into consideration the need for the proposed product, a car shade. It is known to protect the car's interior from damage due to the sun's harmful rays. The proposed product also has other uses such as for decorative and safety purposes. Seeing that the product would be useful to consumers, a feasibility study was conducted to test the viability of pursuing the venture of the manufacturing and selling of car shades. In conducting the study, several aspects regarding the venture were taken into consideration. These are the marketability, technical, management and legal, financial, and socio-economic aspects. The proposed car shade, given to the brand name Light 'N Shade, has a special feature which enables the car shade to be twisted into a flat and small circle for storing. It also comes with a 30-day factory defect warranty, since the proponents value quality. The study will be significant not just for the proponents, but for the customers, the industry, present manufacturers, and future researchers as well. The study shall be limited to seven villages, namely Casimiro, Pilar, Kawilihan, Valle Verde I, San Lorenzo, St. Francis Homes 7, and South Greenheights, which were used as the population for the survey conducted, which also stands as the proponents' primary market. As mentioned earlier, a survey was conducted, by the use of questionnaires, to gather primary data regarding the preferences of the market on the car shade in terms of its color, features, selling price, promotional tools and place of distribution. The results of the survey were tallied and presented in pie charts, which allowed the demand for the product to be determined. Through the use of hypothesis testing, the demand was computed to be 74%. A price analysis was also done which evaluated the price, features, and quality of the proposed product against its competitors. And even though the proposed car shade came out to be more expensive, it is the only one with a warranty. Selective distribution will be used in selling the product, while posters and calling cards shall serve as promotional tools. In studying the technical viability of the venture, each step of the manufacturing process was identified and explained starting from the cutting of the materials to the storing of the finished good. The raw materials, supplies, tools, machinery and equipment needed in the production were specified together with its corresponding technical description, source, and price. The plant was decided to be located at the P & J Bldg. along E. Rodriguez Jr., Ave. in Pasig because of reasons such as its accessibility. The plant layout was designed based on the flow of the production process and maximization of available space. The production schedule, labor requirements, and plant capacity were determined based on the time and motion study conducted, taking into consideration the bottleneck in the process. Maximum capacity was computed as 16 units per week and the minimum at 3 units per week. The cost associated with the production of the product, including forecasted inflation, was determined and break-even in units and pesos were computed. Also illustrated in the study of the aspect are the technical illustrations of the product, charts and diagrams regarding the production process. In the management and legal aspect of the feasibility study, the form of ownership of the proposed business is a corporation because of its advantages. The corporate name agreed upon is ESSENSHADE CORPORATION because of what it connotes. The corporation shall exist for 10 months divided into 3 stages, namely: the pre-operating, operating and post-operating stages. The incorporators and board of directors were enumerated and the table for subscribed shares and paid-up capital was also shown. The company's organizational structure to be adapted was also determined and illustrated based on the formal structure organized according to functions. The functions of each other were enumerated based on the formal structure organized according to functions. The functions of each other were enumerated and the General Administrative Program identified. Under the program are rulings regarding working hours, attendance, tardiness, dishonesty, and taxes. Also under the program are the policies on rotation of position, and the general rules and regulations. Lastly, a project time table was made in the form of a GANTT chart to illustrate what activities should be done and when they are to be done. In the study of the financial aspect of the proposed venture, projected financial statements were presented indicating the value of assets, equity, and income which resulted in P 33,366.75 for the nine-month period of operation. The schedules and breakdowns of costs were also specified. Financial ratios were computed and analyzed to show the projected financial position and condition of the company after operating for nine months. And lastly, a socio-economic study was done to evaluate the social desirability of the proposed product and the benefits its production may provide to the company's external environment. Conclusions were drawn based on the information gathered, that the venture of manufacturing and selling the proposed product would be feasible in all aspects. Though the value of net income may not be that high, it still indicates favorable results. Thus, it is recommended that the proponents venture into the business of producing and selling car shades.