A feasibility study on the hedge bag (Hedge Corporation)

• Main Authors: Abang, Francis J., Aguilera, Raymond G., Altar, Francis I., Cosip, Donald Douglas T., Francisco, Richard R., Yap, Anton Daniel V.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17007
• Institution: De La Salle University

The Hedge Corporation is engaged in bag manufacturing. The company is composed of six incorporators who will contribute three thousand pesos each for a starting capital of eighteen thousand Philippine pesos. The company will exist for a period of ten (10) months. This includes nine (9) months for production and one (1) month for dissolution. The company's product is the Hedge Bag, which takes the form of a sack bag. It comes with a round base and a cylindrical body equipped with an adjustable strap and a drawstring lock. The Corporation is based at #6 E. Jacinto St. Little Baguio, San Juan, Metro Manila. The work area is located at the garage in the ground floor located near the entrance of the house. The Hedge Corporation aims to establish itself in the bag industry. It strives to achieve excellence in every product and to give its consumers optimum value for its price. The Market Study in this feasibility study determines the target market, both primary and secondary. The primary market is composed of high school students because they always use bags for school and extra-curricular activities. The secondary markets are college students, employees and households. It identified the target market's preferences and the products market acceptability by conducting a survey in three schools namely De La Salle Zobel, Paco Catholic High School and Manila Science High School. The population of the survey is 4480 and the sample size is 354. Sampling was done by the use of systematic random sampling. The proponents chose the respondents based on a random start and used an interval of 13. Market acceptability is also determined by means of hypothesis testing conducted in this chapter. The GMAR computed is 55.89%, which shows that the product is accepted by the market. It also states the marketing strategies and promotional tools that will be the most effective in selling the Hedge Bag. The Technical Study discusses the manufacturing process to be used by the company. After conducting the time and motion study, the Hedge Corporation will adopt an Assembly Line manufacturing process for maximum productivity. The main supplier or the Hedge Corporation is Transworld Canvas and Upholstery. The desired output of 15 bags for the manufacturing process is also located in this chapter. The computed efficiency in the production of the Hedge Bag is 73.62% and the Break Even point in units is 6 bags using a selling price of P 240. The Management and Legal Study shows the organizational structure of the Hedge Corporation. The corporation adopted a functional type of organizational structure. The duties and responsibilities of every member is explained and specified. The corporation has a paid in capital of P 18,000 and the subscribed capital stock of P 72,000 and authorized capital stock of P 288,000. Rules and regulations are also stated in this chapter. The Financial Study shows the sources of financing of the corporation, which comes from the proponents' parents and their personal savings. It displays the company's projected financial statements, which include the consolidated balance sheet, projected income statement, and projected cash flow statement. The company's different financial assumptions as well as the sources of financing will be discussed in this chapter. The Return on Investment of the Hedge Corporation is 57.96%. The Socio-economic Study shows the company's impact and contribution to the society. The study states the proponents' stand on prompt payment of taxes, labor contributions and charitable help. These are all in accordance with the proponents' aim to become good and responsible citizens of the Philippines. The conclusion and recommendation will state if the proposed product is feasible or not. Recommendation by the proponents about the venture will also be stated in this portion. The proponents conclude, as a result of the market study, technical study, and financial study that the Hedge Bag is feasible and recommends the implementation of the business venture.