ICCT COLLEGES FOUNDATION INC.

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The Problem Analyzed in the Feasibility

We came to this feasibility study to give fulfillment to the people who like to eat

sweet and spicy foods, because the common tocino we know only gives a sweet

flavor with no additional flavor twist. We think about a flavor that could mix well with

the sweetness of tocino and we ended up to a sweet and spicy tocino. It allows the

consumers to have another variety to pick.

The possible problems that may occur in our feasibility study are the following:

1. Target Market – These are the people who loves to eat sweet and spicy food.

It may also affect the people who does not like spice on their food.

2. Supplier – These are the people where we could get our raw materials of

tocino. It is also hard to find because of the recent issue about the swine flu.

3. Competitors – These are the people that may threat us in terms of selling our

product and it may also be the reason why we might have a low sales credit.

4. Brand – Our product does not have clear differentiation from other brands.

The Business Objective Supported by the Study

 To provide the best product in the market

 To provide an excellent customer service

 Aim to sustain growth

 Aim to deal with changes

We want to provide the best tocino product in the market for people who likes a

sweet and spicy tocino flavor. To provide an excellent customer service. To aim a

sustainable growth of the product by choosing the best resource of meat and other

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ingredients of the product. Aim to deal with changes in management and creating

process that effectively deal with a developing corporation.

Organizational Impact

Used to connect the customers experience to business feasibility and change

that starts by what kind of employees are we going to choose for our company to

have a successful business through enhancing their performances by helping them

to show the skills, talent and strategies that define their competitive advantage and

drive their success. Organizational impacts of technologies can also include

qualitative changes, such as shifts in how managers oversee employees within the

workplace culture. Technology can also change the knowledge resources of the

company.

 EDUCATIONAL FACTOR – It is the integral part of the environment.

Education plays a big part in making sure that the staffs are hired according to

their skills. Since there are some skills and specialization that requires enough

knowledge, education makes it to the factors that affect an organization.

 SOCIO – CULTURAL FACTOR - It takes into consideration all events that

affect the market and community socially. Thus, the advantages and

disadvantages to the people of the area in which the project is taking place

also need to be considered. These events include cultural expectations,

norms, population dynamics, healthy consciousness, career altitudes, global

warming, etc.

 ECONOMIC FACTOR - This factor takes into consideration all events that

affect the internal and external economic environment. The external or macro-

economic events include interstate taxes, embargoes, interest rates, economic

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growth, recession, inflation rate, exchange rate, minimum wage, wage rates,

unemployment, cost of living, working hours, credit availability, financing

availability, etc.

 ADMINISTRATIVE AND POLITICAL FACTOR - Every project has both

internal politics and external politics. The internal politics like team jealousies,

cohesive projects, and personal interests occur in all projects and must be

considered and managed by stakeholders. The external politics refer to those

which the stakeholders do not control. These events include all political events

like employment laws, tax policies, trade restrictions, trade reforms,

environmental regulations, political stability, tariffs, etc.

 TECHNOLOGICAL AND INFORMATION TECHNOLOGY - This factor takes

into consideration all events that affect technology. Since technology often

becomes outdated within a few months after it is launched, it is important to

consider this. This factor could also take into consideration all barriers to entry

in certain markets and changes to financial decisions.

Process Impact

It is a kind of strategy that helps to analyze the progress of a business if it is

effective or if we need to change the design of the product for our customers or stay

with earlier design. We need to satisfy our customer and we need a feedback of our

customer it is useful so we can add something new in our product or make our

product better. We also have a competitors in our product, we need a plan to surpass

our competitor and most of the people are searching in the internet to review the

product before purchasing.

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Expected Cost and Benefits

Benefits Costs

Purchase of Utensils Php - 2,955

Purchase of Equipment and Sources - 6,600

Purchase of Raw Material - 190

Purchase of Ingredients - 210.4

Purchase of Packaging Material - 76

Transportation - 150

Water and Electricity Consumption - 220

A. Cost of Utensils

Utensils Cost

Measuring cup/spoon Php 337.00

Rubber Spatula 130.00

Kitchen Knife 200.00

Chopping Board 138.00

Knife Sharpener 63.00

Tong 50.00

Plastic Wash Basin 1,492.00

Tray 260.00

Cling Wrap 285.00

Subtotal Php 2,955.00

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A. Equipment and Sources

Equipment Cost

Weighing Scale (spices) 350.00

Weighing Scale (meat) 750.00

Refrigerator 5,000.00

Polysealer (for sealing transparent 500.00

bag)

Subtotal Php 6,600.00

B. Raw Material/Ingredients/Packaging Material

Item Unit Cost

Raw Material

Pork (kasim) 1kg. 190.00

Ingredients

Salt 1 tbsp. 0.38

Curing Salt ½ tsp. 0.15

Sugar 2 tbsp. 6.86

Phosphate 1 tsp. 0.54

Pineapple Juice 8 tbsp. 6.16

Crushed Garlic 2 tbsp. 3.81

Food Color (red)

Chili Powder 2 tbsp. 5.00

Vetsin (optional)

Subtotal Php 212.9

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Packaging Material

Transparent Bag

(1/15x22cm)

Php 1.08

C. Product Costing

Direct Cost

Particulars Cost

Raw Material (1kg. Pork Meat) Php 190.00

Ingredients used for 1kg. 22.9

Packaging Material 1.08

Total Direct Cost Php 213.98

Indirect Cost

Particulars Cost

Labor Cost Php 10.00

(350/day provincial rate /

70kgs. Produced x 2 workers)

Transportation Cost 2.14

(150/70kgs.)

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Water and Electricity 3.14

(220 consumption/70kgs.)

21.40

Contingency Cost (10% of direct cost)

Total Indirect Cost Php 36.68

*Based on 70kgs. Average daily produce

After adding all ingredients to the 1 kg. meat, the yield of the finished product should

weigh to 1.5 kgs.

Particulars Cost

Total Direct Cost Php 213.98

Add: Total Indirect Cost 36.68

Total over the 1.5 kgs. Yield 250.66/1.5kg

Production cost per kg. Php 167.11

D. Product Pricing

Production Cost per kg. Php 167.11

Add: 15%-20% markup of the Production 33.42

Cost

Php 200.53

Selling Price per kilogram

Php 220.00

Market Price per kilogram

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Anticipated Risk

In business we encounter risk and as a corporation we need to face that risk

like African Swine Fever (ASF) is the latest problem that we encounter. Example, if

the pigs have ASF and we produce our product then some of the consumers will not

buy to avoid ASF. ln that case it may lead our business to fail. Sometimes raw

materials might be contaminated and lead to food poisoning.