A feasibility study on DWBH Corporation

• Main Authors: Ang, Ena Marie R., Bustamante, Ma. Monique, Chan, Mirabelle, Chua, Wilaine Audrey Tan, Cimagala, Tristan Angelo, Danao, Philipp, De Guzman, Ronald Joseph, Landrito, Michael Marion, Yu, Joel C.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17022
• Institution: De La Salle University

DWBH Corporation made a feasibility study on manufacturing and selling of cellular phone pouches, the Pouch-a-Roo. Pouch-a-Roo is a cellular phone pouch, made of Velboa 3mm Korea cloth, which would serve as a protective covering against any scratches and cracks in cellular phones. In the Market Study, the proponents were able to identify both the primary and secondary markets of the Pouch-a-Roo. The proponents were able to determine that 83% of the total respondents were willing to buy the product. The preferred product features of the target market were also determined. From the results, the proponents decided to sell the Pouch-a-Roo at P 130. This includes a 68% mark-up applied to the total production cost. The selling price is relatively lower than the competitors. DWBH Corporation also based their marketing program from the preferred promotion, product and distribution strategy. Monthly demand was also computed at 86 units. Based on the Technical Study, the proponents chose 14-B Galino St., Caloocan City as its plant location because of its accessibility to the majority of the proponents as well as to the suppliers of the raw materials. In terms of machinery and equipment, the proponents were able to rent sewing machines of good quality. Through the time and motion study, the proponents decided to utilize the assembly line method because it promotes specialization of skills for each proponent. Although the job shop method produces a greater number of units of the Pouch-a-Roo, it was not chosen because of the limitation in the number of sewing machines needed. Also, the study aided the proponents in determining their average capacity of the plant, which is 21 units. To further maximize production time, the proponents opted to use simultaneous steps in order to reduce the bottleneck. The production cost amounted to P 53.34. Thus, 20 units per month would be needed to break-even. The Management and Legal Study indicated the form of ownership the proponents deemed appropriate for the type of business they established. The proponents chose DWBH Corporation as the name of their company and Pouch-a-Roo as the brand name for their product. The corporation formulated its own organizational structure by establishing their own set of rules and regulations which would serve as guide for everyone to follow as well as its corresponding sanctions for violations committed. The specific duties and responsibilities of all the directors and the officers were established to define the corresponding obligations set by management. The salary scale and the authorized capital stock were also set by the Board of Directors. The Gantt Chart determines the schedule of activities for Practicum 1, 2 and 3. In the Financial Study, the proponents made financial assumptions as to the position of the corporation. With an initial project cost of P 13,500 for the month of October, the proponents are expecting 81.14% return on investment at the end of the operation. Expected profits would total to P 58,086.30 after the ten months operation of the corporation. In the Socio-Economic Study, the proponents proposed several measures for the corporation to be socially responsible. Finally, after taking into consideration all the results and conclusions of the feasibility study, the proponents recommend the commencement of manufacturing operations on October year 1999.