PROJECT SUMMARY

NAME OF ENTERPRISE

Bugasan Ni Nyor Jose is a development of the current operation of San Jose Multi-Purpose Cooperative, which is rice selling. The name of theproject is named after Saint Joseph; he is the protector of families and the catholic church. The word Nyor comes from the Visayan language of Senyor which means somebody who is older than somebody else. The word also implies respect for elderly. Inview of the fact that respect dignifies the existence of a person, that is why the researchers adopted the name Bugasan Ni Nyor Jose in believing that it will offer optimum quality of service by respecting and satisfying the needs and wants of its customers.

LOCATION

The Bugasan Ni Nyor Jose is located at the former Holy Child Academy canteen, Benigno Aquino St., San Jose District, Pagadian City beside San Jose Parish Church and the San Jose Multi-Purpose Cooperative.The suppliers of Bugasan Ni Nyor Jose are within Zamboanga del Sur. For computation purposes, the researchers shall use the Palma Golden Grains Rice and Corn Mill as the supplier.The 19.32% of the members live in San Jose, Pagadian City. There are more than ten stores that sell rice in thearea.

DESCRIPTION OF THE PROJECTThe San Jose Multi-Purpose Cooperative started its operation in selling rice on November 15, 2011. It currently provides credit of quality and affordable rice to extend non-financial help to its members. However, this rice provision of SJMC is exclusive for its members only, thus non-members could not purchase the available rice of SJMC. To whatever degree, the main purpose of Bugasan Ni Nyor Jose is to increase the population of SJMC members by attracting the non-members to become one of active members of SJMC and also to increase the value of the cooperative through rice selling. The researchers propose to extend services to non- members butwith higher selling price than the members.

PROJECTS LONG-RANGE OBJECTIVES

Bugasan Ni Nyor Jose listed the following long-range objectives in relation to their rice selling project:To attract more members through rice selling;

To increase the value of the cooperative through rice selling;

FEASIBILITY CRITERIA

The researchersconsider the profitability, sustainability, and marketability of the project in judging the feasibility of Bugasan Ni Nyor Jose.According to the obtained data, people aged from 1 to 73 are the rice eating people . Thus, demand for rice is high. The supplier of Bugasan Ni Nyor Jose provides good quality of rice at a right price; consequently, the project would offer affordable price to its customers. The Bugasan Ni Nyor Jose will classify their customers according to their potential profitability as; butterflies, true friends, strangers and barnacles. Through this, the project will build right relationships with the right customers and as a result the project will yield high profit.The Bugasan Ni Nyor Jose provides the service of selling rice. The sustainability of the project depends on its suppliers Danlugan Farmers Multi-Purpose Cooperative and Palma Golden Grains Rice and Corn Mill. The Bugasan Ni Nyor Jose will treat its suppliers as partners to strengthen the relationship between them. By that, the Bugasan Ni Nyor Jose will be able to provide superior customer value and satisfaction to its customers. The population growth of Pagadian City grows regularly; in this line, the demand for rice also increases due to the increase of population.Rice already gained its market for it is the most consumed cereal grain in the Philippines. In that matter, selling rice in Pagadian City will yield high profit through flyer distribution, radio advertisements, posters, and sufficient information dissemination fromSan Jose Multi-Purpose Cooperative heads to the members.HIGHLIGHTS OF THE PROJECT

History

The San Jose Multi-Purpose Cooperative has been selling rice for three months already which started on November 15, 2011. This project is only exclusive for themembers of SJMC and the 25-kilo sack of rice is purchased through cash or on account.The researchers want to develop its currently operating rice selling, named by the researchers as Bugasan Ni Nyor Jose, because the demand of rice is always high.The researchers aim to extend the service to the non- members as well offering the same kind of quality of rice. The members shall get a Php2.00 discount from every kilo purchased. This is to attract the non-members to become members, therefore increasing the population of the members and increasing the value of the cooperative.

B .Project Timetable and Status

The rice selling project, which has started on November 15, 2011, is already operational. The researchers have allotted four months to realize thedevelopment/upgrading of the current rice selling operation of SJMC.
C. Nature of Industry

Bugasan Ni Nyor Jose is a service-oriented business. It does not cultivate and process rice to sell in the market; rather it involves buying and selling. TheBigasan Ni Nyor Jose buys its supplies from Palma Golden Grains Rice and Corn Mill and Danlugan Farmers Multi- Purpose Cooperative.

D. Mode of Financing

The Danlugan Farmers Multi-Purpose Cooperative requires the Bugasan ni Nyor Jose to pay on the 15thand 30thday of the month. Purchasing is done once amonth.The Palma Golden Grains Rice and Corn Mill requires the Bugasan ni Nyor Jose to pay in cash and an additional Php20.00 per sack for delivery. The purchasing is done only once a month.

E. Investment Costs

SJMC did not expense even a single centavo from their funds when they started the project last November 15, 2011. Upon the implementation of the developed rice selling operation, the National Food Authority requires the Bugasan Ni Nyor Jose tohave at least Php30,000.00 capital.

MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS AND CONCLUSION ON THE FOLLOWING:

1. Market FeasibilityThe project is feasible because of the following reasons:a. The rice constitutes the staple food of over 70 million Filipinos andcontributes 35% of the Filipinos total calorie intake;b. Due to reason number 1, demand will always be high.

2. Technical FeasibilityThe project is technically feasible because:Store equipment are available locally;

Manpower to beused in preparing the store is available locally; and

The materials needed in the store preparation are also available locally.

3. Financial Feasibility

4. Socio-Economic Feasibility

5. Management Feasibility

MARKET STUDY

SERVICE DESCRIPTIONThe Bugasan Ni Nyor Jose is a service- oriented business. It involves the buying of 25-kilo sack of rice from Danlugan Farmers Multi-Purpose Cooperative and Palma Golden Grains Rice and Corn Mill to the customers which are the members and non-members of the cooperative. The Bugasan Ni Nyor Jose focus only on their interaction between the suppliers and customers.

DEMAND AND SUPPLY ANALYSIS

The following table shows the demand, supply, and the corresponding gap for years 2006 to 2016.

The marketof rice has a shortage of 4, 054, 555 kilograms. Considering the per capita consumption of Pagadian City, there are 46, 165 people that need to be served. With the service of Bugasan Ni Nyor Jose, the need of rice will be served. Having that share in the market is a big opportunity for the researchers to offer the service of rice selling.

PRICE STUDY

The researchers have canvassed the price of similar and substitute rice products of Masipag Head Rice.VarietyHelen del SocorroImeldaBernard Y. AbasaR&L Corpuz Marketing Inc.Average Price

Angelika Headrice35/kilo; 1,700/sack3935/kilo; 1,680/sack36.33

HRV-1039/kilo; 1,850/sack3939/kilo; 1,840/sack37/kilo; 1,800/sack39

V-1234.50/kilo; 1,670/sack35/kilo; 1,700/sack35.75

V-1039/kilo;1,850/sack3636.69

Mimis35/kilo; 1,720/sack33/kilo; 1,640/sack35/kilo; 1,700/sack34.33

7-Tonner34/kilo; 1,680/sack3437/kilo;1,760/sack34/kilo; 1,700/sack34.75

Mais No.1028/kilo; 1,300/sack28/kilo; 1,300/sack

28/kilo; 1,400/sack28

Mais no.1228/kilo; 1,300/sack28/kilo; 1,300/sack28

NFA (c-4)27/kilo; 1280/sack2626/kilo; 1,250/sack26.33

Supremo35.5033/kilo; 1,640/sack34.25

Masipag (Headrice)37/kilo; 1,800/sack37

Yellow corn23/kilo; 1,090/sack23

Vita-rice35/kilo; 1,680/sack35

SM (Masipag)33/kilo; 1,640/sack35/kilo; 1,700/sack34

Angelika (Headrice)37/kilo; 1,760/sack36/kilo; 1,740/sack36.5

Jasmine (Headrice)36/kilo; 1,700/sack37/kilo; 1,800/sack36.5

Bordagol34/kilo; 1,680/sack34

FACTORS AFFECTING THE MARKET

Demand may be influenced by the change of the income of the members, their tastepreference, number of family members, the price of substitute and similar rice variety and the credit policies of SJMC.The supply maybeinfluenced by the weather conditions or seasons, competitors, production and transportation cost, and price of the product.

MARKETING PROGRAMS

The marketing programs are: flyer distribution, radio advertisements which cost Php1, 500.00 per month, posters, and sufficient information dissemination from SJMC heads.Every kilo of rice will have a mark-up of Php5.00. A 25-kilo sack of rice will be sold Php 850.00. If members will purchase, they will have a discount of Php2.00 per kilo making the sack of riceonly Php800.00.The non-members cannot avail the Php2.00 discount for every kilo.

DISTRIBUTION PROCESS

Suppliers

Members / Customers

Bugasan Ni Nyor JoseSan Jose Multi- Purpose Cooperative

TECHNICAL ASPECT

PRE- OPERATION: THE GANTT CHARTMonths

1234

Feasibility Study

Business Permit

Management SystemOrganization

Renovation

Purchase Store Supplies

Contact the Suppliers

InformationDissemination

Start of Operation

The Gantt chart shows the planning process in operating a business. The first month covers the feasibility of the project in the market. The next month is for the verification of documents (business permit),organization of the management system and store renovation. Purchase of store supplies and supplier contact covers the third month. Information dissemination includes radio advertisements, posters, and flyers will be done in the fourth month as well as thestart of the business operations.

OPERATIONRICE PROCUREMENT

Supplier Contact.

Establish relationship with the suppliersNegotiation.

Negotiations concerning price and delivery schedules are established.Reordering

After the rice inventories are allsold, reordering will be done.SELLING PROCESS

The rice inventories are sold cash to non-members and members. However, credit is also available to members.COLLECTION PROCESS

Members are given one month to pay for the rice purchased on credit.EQUIPMENTBill DetectorWeighing Scale

CalculatorRecord Book

StaplerCarbon Paper

Staple WireCash Invoice

Ceiling FanDelivery Receipt

Straight Fluorescent Tube

STORE PREPARATION

Lumber 1x1

Lumber 2x2

Nail No. 1

Nail No. 3

Paint

Plywood

PROJECT COSTMachinery & EquipmentStraight fluorescent tube1Php 59.75

Bill Detector1Php 549.75

Calculator1Php 595.0

Stapler1Php 110.00

Staple wire1 boxPhp 43.50

Ceiling Fan1Php 350.00

WeighingScale1Php 2200.00

Record book1Php 36.00

Carbon Paper5Php 7.50

Cash Invoice1 doz.Php 700.00

Delivery Receipt1 dozenPhp 700.00

Total Costs for Machineries and EquipmentPhp5,351.50Add: Store Preparation:Lumber 1x110 pcs.Php120.00

Lumber 2x210 pcs.Php280.00

NailNo. 1 1 kl.Php90.00

Nail No. 31 kl.Php90.00

Paint4 LPhp350.00

Plywood3 boardsPhp750.00

Total Costs for Store PreparationPhp 1,680Total Project CostPhp7,031.50

Requirements for Business PermitRegulatory Fees:Clearance FeePhp50.00

Zoning FeePhp50.00

Secretarys FeePhp50.00

Books of Accounts RegistrationPhp50.00

Subscription FeePhp10.00

Health Medical CertificatePhp60.00

Business Permit FormPhp100.00

Garbage FeePhp200.00

Sanitary Inspection FeePhp100.00

Business Permit FeePhp400.00

Total Regulatory FeesPhp1, 070.00

Verification of Documents:Barangay ClearancePhp300.00

Sanitary/Health ClearancePhp200.00

Fire Safety Inspection CertificatePhp100.00

Others:(specify) OBOPhp300.00

Total Cost for Verification of DocumentsPhp900.00Total Cost for BusinessPermitPhp1,970.00

RENTThe Bugasan Ni Nyor Jose is situated in the former canteen of Holy Child Academy, beside San Jose Parish Church and San Jose Multi- Purpose Cooperative. Rent Expense per month is Php2, 500.00.UTILITIESElectricity isthe sole utility to be used in the Bugasan Ni Nyor Jose.WASTE DISPOSALSweeping is the manner of waste disposal of dust produced in storing and selling rice. The dust is thrown in the city- prepared garbage cans.LABOR REQUIREMENTThe various jobs necessary for the operational stage are:Delivery Boy

Sales Clerk

FINANCIAL FEASIBILITYMAJOR ASSUMPTIONSCredit Term

A member can avail rice for credit. It should be paid within one month and a corresponding 0.5% daily will be imposed if not paid on time.Sales Discounts

A non-member, upon purchase of rice, cannot avail of any discount. A member, however, can have Php. 2.00 discount per kilo purchased.Labor and Management Compensation

The Bugasan manager shall receive Php.____monthly. The sales boy shallreceive Php.____. The salaries shall increase ___ % upon the start of the year.Inventory Costing

Every kilo of rice shall have Php 5.00 mark-up.Product Mix

Bugasan ni Nyor Jose shall only sell Masipag Head rice.Tax Exempt

Bugasan ni Nyor Jose shall notbe imposed any tax by the government.Price Ceilings

Total Project Cost: Non-Current AssetRental FeexxxStore Preparation- Waterxxx- Electrical Connectionsxxx- RenovationxxxLegal RequirementsxxxEquipment PurchasesxxxWaste Disposal- Broomxxx- Dustpanxxx- Garbage BinxxxTotal NCAxxxInventory Investments: Current AssetPurchases (Rice)xxxFreight/DeliveryxxxTotal CAxxxTotal Assets or Total Project Costxxx

Sales (175sacks x Php850)P148, 750Cost of Sales (Php770 x 175 sacks)(134, 750)Net Sales14, 000Less:Rent2, 500Electricity250Salaries Sales LadyP3, 500Boy2, 5006, 000Advertisement1, 500Net IncomeP 3, 750