Koolai (Color Factory, Inc.)

• Main Authors: Banayat, Noelle O., Cervantes, Maricel R., Edralin, Santiago Joven V., Endaya, Aileen T., Lim, Jerelyn D., Mariano, Christelle Rhodamae C., Mendoza, Milton C., Pascua, Eric Elpidio L., Tan, Jeraldin C., Velazco, Ma. Kristine D.R.
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17033
• Institution: De La Salle University

A feasibility study was conducted by ten entrepreneurship majors from De La Salle University to determine the viability and profitability of organizing a microenterprise dedicated to the production and selling of a product. The study resulted in the formation of The Color Factory, Inc, a corporation aimed towards manufacturing and selling its product, Koolai. The corporation is composed of ten incorporators, with a goal of maximizing shareholder wealth with regard to the rights of others and through correct business practices. The corporation's existence commences in January 2000 and will be terminated in December of the same year. Its product, Koolai, is an innovative, tie-dyed shoulder bag that caters to the individualistic nature of teenagers and young urban professionals. Producing a minimum of 48 bags per month, the firm shall maximize its available resources to increase capacity and to maximize its returns on investment. After conducting a survey on 267 respondents from several high schools and universities in Metro Manila, the proponents deduced that 41% of the entire population of high school and college students are willing to purchase Koolai. With a cost-plus pricing strategy, The Color Factory, Inc, hopes to penetrate a reasonable portion of its market. Koolai can be manufactured through eight steps: dyeing, washing, ironing, pattern-making, cutting, sewing, quality control and packaging. Through this process, the firm incurs a total production cost of P 153.03 per unit. Together with a 47% mark-up, the product will be sold at P 225.00 to the market, covering its monthly fixed costs of P 1,115.00 per month. Should all the produced units be sold, this will result in a net return on investment of 200%, the investment of each incorporator being P 2,000 each.