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Table of Contents
EXECUTIVE SUMMARY
I. NAME OF THE BUSINESS
An enterprise must have a firm name under which it will operate. A name will be very
significant to distinguish it from other individuals composing it and others, and it helps in
facilitating the business transactions by the entity.
In the study, the proponents named the business I-Crab-U because of its
uniqueness and relatedness on what the business is producing. The name I-Crab-U,
based on the expression I Love You suggests that the company renders its service with
love and dedication.
II. LOCATION OF THE BUSINESS
The proposed location for the I Crab U Companys office and pond site will be at 402
Marseilla Street Muzon 1, Rosario Cavite. The location is ideal for the crab because of
the brackish water and the loam-clay that is suitable for it. The warehouse will be utilized
for the storage of trucks, crabs, and accommodation of the workers.
III. BRIEF DESCRIPTION OF THE BUSINESS
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The proposed business is
under Agriculture industry; particularly in the aquaculture industry for the crabs is the
primary product of the business. The crab will be directly sold to the wet market in
Seaside Macapagal Boulevard, Pasay City. With high production and low cost business
activity, the said business is expected to be profitable.
IV. PROJECTS LONG-RANGE OBJECTIVES
After it launched its name in the industry and has undergone the first five years of
operations, I Crab U Company forecasts business expansion. Alongside with the
companys objectives, it enumerates the long range objectives of its business as follows:
To create a sustainable competitive advantage
To raise the best quality of crab
To expand to a new market
To increase the companys market share
To fully return the investment made by partners in establishing the firm
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INTRODUCTION
I. BACKGROUND OF THE STUDY
Crab farming has become an integral part of aquaculture in the country. This practice
began in the early seventies when some fishpond operators in Bicol, Visayas, and
Southern Tagalog started to culture crabs as a subsidiary crop in milk fish or bangus
ponds.
Scylla serrata is the common mud crab occurring in the estuarine and mangrove
areas and is commonly called as red crab and it prefers to live in low saline waters.
This specie is the biggest and most important member of the family of edible crabs in the
Philippines. Mud crab, oralimango, is considered a delicacy and has become a popular
fare in seafood restaurants. It is sought for its very tasty aligue or ripe eggs in the ovary.
They are living both as a scavenger and a cannibal.
The mud crab resource is a natural bounty for our country, which has a potential to
change the socioeconomic status of the coastal communities. The coastal poor
fishermen and educated unemployed youths should realize this act and take up crab
culture or fattening in eco-friendly way to raise their economic status.
II. SIGNIFICANCE OF THE STUDY
The researchers believed that in conducting this feasibility study, the following
persons or organizations will benefit from this research work.
First, the students, the study can be a learning paradigm to them who may choose to
test the feasibility of the same kind of business. It may enhance their knowledge on how
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to acquire relevant data, and
how to process them to give the readers information about the viability of the proposed
project.
Second, the potential capitalists, this may give them awareness on how to use their
resources in the wisest way by encouraging them to put it in an undertaking where they
can surely get a return on investment. Simultaneously, it may develop their
entrepreneurial skills by providing them business policies that they may effectively
implement for the efficiency of operations.
Third, the owners of the same kind of business, this study may contribute new ideas
that they may apply especially if some of their strategies and known facts about the
industry are outdated. Through the disclosed increasing number of their current rivals, it
may boost their competitive spirit and move them towards the betterment of their
business tactics.
Finally, the industry, this study may serve as an agent on the reduction of gap
between the supply and demand of crabs.
III. STATEMENT OF THE PROBLEM
The study is created in order to assess the feasibility of I-CRAB-U as a crab grower
and distribution business. In order to do so, the researchers developed the following
questions covering the management, marketing, technical, financial, and socio-economic
aspects of the study.
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Management Aspect
1. What form of business organization is suited for the business and its
corresponding legal requirements?
2. What is the management structure?
3. What are the appropriate policies to be implemented by the company?
4. How will the business control its activities, resources, and employees?
5. What are the requirements, qualifications and responsibilities of the
employees?
6. What will be the salaries and benefits of employees?
Marketing Aspect
1. Who is/are the target market of the business?
2. Does the study ascertain that there is an existing demand and demand-
supply gap for the product?
3. Who are the competitors of the business?
4. What promotional activities will the business conceived to communicate the
merits of the product offered and persuades target customers to buy?
5. What are the strengths, weaknesses, opportunities, and threats of the
business?
6. Is there a competitive advantage for the business?
Technical Aspect
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1. What are the
activities involved in crab growing?
2. Is the location suitable for the proposed business?
3. What are the appropriate pond size and layout as well as the office size and
layout of the business?
4. What is the most efficient way to sell the crab and deliver it to its target
market?
5. What are the equipment and furniture and fixtures needed for the operation of
the business?
Financial Aspect
1. How much capital is needed by the company to establish and operate the
business?
2. What are the expected total projected cost, and its breakdown according to
major components?
3. How would it be financed?
4. What is the projected financial performance and growth of the business for
the next five years?
5. How much profit is expected?
6. How much would be the expected return of capital?
Socio-Economic Aspect
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1. What will be the
significant impact and benefits of the business to the society as a whole and
its particular location?
2. What are the contributions of the business towards the development of the
economy?
3. How can it be beneficial for the people involved in the same business?
4. How will the business procedures promote awareness and establish its
social responsibilities in the conservation of the environment?
IV. OBJECTIVES
The feasibility study conducted aims to serve as a guide to those who plan to
establish a crab growing company. It is directed towards the goal of determining the
over-all feasibility of the business given the management, marketing, technical, financial,
and socio-economic aspects.
Management Aspect
1. To identify the form of business organization most suited for the business and
its legal requirements.
2. To illustrate and clearly discuss the management structure.
3. To identify the appropriate polices to be implemented by the company.
4. To determine the business control that must be applied in terms of activities,
resources, and employees in this kind of business.
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5. To identify the
requirements and qualifications as well as the responsibilities of the
employees.
6. To identify the salaries and benefits of the employees.
Marketing Aspect
1. To define the target market of the business.
2. To determine and analyse the demand and supply gap to be used in the
projected sales.
3. To identify key competitors of the business.
4. To ensure that the product will be promoted in an efficient way in which it can
penetrate into the market.
5. To provide analysis of the strengths, weaknesses, opportunities, and threats
of the business.
6. To know the competitive advantage of the business.
Technical Aspect
1. To know the activities involved in crab growing.
2. To describe the geographical location of the business and prove that it is
suitable and convenient to make the services available to the target market.
3. To illustrate the pond size and layout as well as the office size and layout of
the business.
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4. To determine the
process in crab growing and how to distribute or deliver it to the market.
5. To determine the quantity, type, and cost of the necessary equipment,
furniture and fixtures to be used in the operation of the business.
6. To determine where to acquire the supplies and necessary equipment and
furniture for the operation of the business.
Financial Aspect
1. To determine the initial capital requirement for the commencement of the
business.
2. To make a realistic, complete, and conservative estimate of the total cost to
put up a project.
3. To know how the business will be financed.
4. To determine the projected financial performance and growth of the business
for the next five years through the presentation of its financial statements.
5. To determine the expected profit.
6. To determine the expected return of capital.
Socio-Economic Aspect
1. To determine the significant impact and benefits of the business to the society
as a whole and in its particular location.
2. To determine the contributions of the business to the economy.
3. To determine the benefits of this to the people involved to the same business
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4. To enumerate the
activities that the business will do in incorporating its social responsibilities for
the total welfare of the community in which it operates.
V. SCOPE AND LIMITATION
The feasibility study covers and examines the management, marketing, technical,
financial, and socio-economic aspect in line with the feasibility of engaging in a crab
growing company. Limitations that stumble upon the proponents are considered here.
The study comprises its target market understood to be the stall owners who sell
crabs positioned in Seaside Macapagal Blvd. in Pasay City. The said location was
chosen by the proponents since it is situated near different seafood restaurant, malls,
wet markets and even commercial areas. Obtained information from the market is to
remain constant with the proponents but changes to consumers savour may occur. This
facet is under no control.
VI. METHODOLOGY
Various data gathering methods are adapted by the group to acquire relevant
information that would be necessary in the completion of the study.
Potential business site and target market
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The group
derived information relevant to the business site such as the area of the said
location, the rules and regulations pertaining to the business management. The
target market of the said business is the wet market in Seaside Macapagal
Boulevard, Pasay City. The group obtained data and information directly from the
stall owners who sell crabs and the General Manager of Seaside.
Surveys
The surveys were conducted within the premises of Seaside Macapagal
with respondents representing their stalls. The number of respondents is based
on the number of stall owners in Seaside.
Data Tabulation and Analysis
The data gathered from the respondents are tabulated, processed, and
then analysed for the benefit of the interested users. Various forecasting
techniques were used to determine the projected values of demand and supply.
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MANAGEMENTASPECT
I. INTRODUCTION
Management is defined as the process of planning, organizing, directing and
controlling of the companys activities. Management formulates plans and policies to
guide the company to run smoothly. It aims to achieve the goals and objectives of the
company. It also covers information about the formation of partnership, the preparation
and control for the employees, their compensation and benefits, as well as the policies
implemented in the business.
This part of the study encompasses the information on how the business will be
established and how it will operate during its existence and what changes it may have in
the future. The Articles of Co-Partnership will also be provided to properly design the
operation, type and nature of the business, and the partners. Legal requirements that the
business need to comply with before it starts its operations are also enumerated and
discussed. In connection to the date of its operations, the projects time table of activities
is also presented. The organizational structure is shown as well, to give information
about the hierarchy of positions and responsibilities inside the business. It also gives the
manpower requirements of the business, such as the job description and qualifications
of each position. Organizational policies are also shown, which include the
corresponding compensation of the employees. The internal control of cash collections,
disbursements, inventories, and other accounts are also discussed. The nature of how
the partnership operates and how operational activities should be properly treated is well
discussed and presented.
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II. MISSION AND VISION
STATEMENT
A. MISSION
To continuously supply the wet market particularly the stall owners who sell crabs in
order for them to continue to the market with quality crabs at competitive prices and
serve as an instrument to bring customer satisfaction with the highest regard for
business ethics.
B. VISION
To raise and supply a superior quality crabs and eventually grow as a market
supplier in the crab industry.
III. FORM OF OWNERSHIP
According to Article 1767 of the Civil Code of the Philippines, Partnership is a
contract whereby two or more persons bind themselves to contribute money, property, or
industry, to a common fund, with the intention of dividing profits among themselves. The
business shall be established in the form of partnership composed of three (3) general
partners.
As to activity, the business is a trading partnership whose main activity is to sell
crabs. As to object, it is a particular partnership- the partners are to contribute
determinate things. As to liability of partners, it is a general co-partnership which consists
of general partners who are liable pro-rata and might be solidary liable with their
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separate property of
partnership liabilities. As to duration, it is a partnership at will which may be terminated
anytime by mutual agreement of all partners or by will of one partner. As to legal
existence, it is a de jure partnership which has complied with all the requirements for its
establishment. And as to publicity, it is an open partnership wherein all the identity of the
partners are made known to the public.
Partnership as the form of the proposed business is more appropriate than sole
proprietorship because a large amount of investment is needed, and since there is a
collective contribution of money, property, and industry among partners, it is easy for
them to establish the business with regard to the resource requirements. Furthermore, it
is more appropriate than as a corporation, since the formation and management of a
corporation is more complicated. Another thing is the attached unlimited liability to the
partners is also an advantage to attract creditors.
Although a partnership has some disadvantages like the possibility that the partners
can be personally liable in case of losses and the complexity in its stability because the
relationship between the partners maybe subject to change anytime, it is believed that
the benefits for pursuing this kind of business will still outweigh its costs and with proper
management and effective strategies to be undertaken, the firm will establish a name
that will make it reliable source in the crab growing.
IV. LEGAL REQUIREMENTS
The following registration requirements have to be complied with in order for any
enterprise to operate lawfully.
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A. SECURITIES AND
EXCHANGE COMMISION (SEC)
a. Registration/Recording of the Partnership
Basic requirements:
1. Name Verification Slip;
2. Articles of Partnership; and
3. Join affidavit of two partners undertaking to change partnership
names in the even another person, entity or firm has acquired a prior
right to use of the same name or one similar to it (not required if the
Articles of Partnership has provision on this commitment).
Additional requirements:
Endorsement/clearance from other government agencies, if applicable
b. For partnership with foreign partners
1. SEC Form No. F-105
2. Bank certificate on the capital contribution of the partners
3. For foreign partners who want to register their investments with the
BSP
Proof of remittance:
(If it is a limited partnership, the word Limited or Ltd should be
added to the partnership name. Articles of partnership of limited
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partnerships should be under oath only (jurat) and not acknowledged
before a notary public)
B. DEPARTMENT OF TRADE AND INDUSTRY (DTI)
a. Completely filled up application
b. Photocopy of SEC/CDA Certificates of Registration
c. Articles of Partnership
d. Board Resolution/ Partnership agreements for authorized signatories
e. Registration fee of Php 500.00 plus Php 15.00 documentary stamps.
C. CITY OR MUNICIPALITYS MAYOR OFFICE
a. Article of Co-Partnership
b. Location Clearance
c. Sanitary Permit
d. Bureau of Internal Revenue Registration
e. SSS Clearance
f. Barangay Clearance
g. Treasurers Clearance
h. Community Tax Certificate
i. Tax declaration of Real Property
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j. Bureau of
Fire Protection Clearance
k. Application to engage in Business
l. Police Clearance
D. DEPARTMENT OF HEALTH (DOH)
a. Sanitary Permit- Submit to the Sanitation Inspector assigned to
your establishment, photocopies of the following documents:
a. Official Receipts of payment of the Sanitary Fee
b. Inspection report of the sanitation Inspector to include the
following among others:
1. Microbiological analysis of water from water laboratory
2. Pest Control Contract of Service/ agreement of Contract
Service from licensed pest applicator
3. Master list of all employees of the establishment with
respective designation/position:
a. Original Health Certificate of all employees of the
establishment including that of the Manager(s) and/or Owner
for presentation
b. Photocopy of the Health Certificates for submission
c. Schematic diagram/ Floor Plan of the establishment
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d.
Occupancy Permit of the establishment
e. Photocopy of previous Sanitary Permit (for renewal)
E. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES (DENR)
a. Description of the project development indicating the name, address, type
and purpose, location, description of the environmental setting, scale and
cycle, source of environmental impacts management measure, status of
the project and signature of project proponents.
b. Additional documents
1. Certificate of location clearance
2. Plant lay-out
3. Coloured picture of sites perspective
4. Drainage plan
5. Estimated volume of water usage including waste water
characterization
6. Report of the consultative process undertaken
7. Notarized accountability statement of project proponents
F. BUREAU OF INTERNAL REVENUE (BIR)
a. Tax Form
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b. BIR Form 1903
application for Registration for Corporations/Partnership (Taxable/Non-
taxable)
c. Documentary Requirements
o Copy of SEC Registration and Articles of Incorporation/ Articles of
Partnership, as the case may be;
o Copy of Mayors Business Permit or duly received Application for
Mayors Business Permit, if the former is still in process with the LGU
Other Documents for submission only if applicable:
1. Contract of Lease;
2. Certificate of Authority if Barangay Micro Business Enterprises
(BMBE) registered entity;
3. Franchise Agreement;
4. License to Do Business in the Philippines, in case of resident foreign
corporation;
5. Proof of Registration/Permit to Operate with BOI, SBMA, BCDA,
PEZA
In the case of registration of branch/facility type:
1. Copy of the COR of the Head office for facility type to be used by the
Head office and COR of the branch for facility types to be used by a
particular branch;
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2. Mayors
Permit or duly received Application for Mayors Business Permit, if the
former is not yet available; and
3. Contract of Lease, if applicable
Documentary Requirements for new application of Authority to Print
o BIR Form 1906 together with the following:
Job Order
Final and clear sample
Photocopy of Certificate of Registration, Payment form and
Previous ATP
Last booklet for verification
Documentary Requirements for new Registration of Books of Accounts
o BIR Form 1905 together with the following:
New sets of Books of Accounts
Photocopy of Certificate of Registration and paid current ARF (for
immediate verification and in systems downtime)
G. DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)
a. Accomplished rule 1020 form
b. Lay-out of business location
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c. Vicinity map
H. SOCIAL SECURITY SYSTEMS (SSS)
As an assurance of protection of the employees right and conditions and as a
labour requirement, all employees are required to be registered to Social Security
System (SSS). This is in accordance with Republic Act No. 8282- the Act further
strengthening the Social Security System thereby amending for this purpose
Republic Act No. 1161, as amended, otherwise known as the Social Security Law
Section 9.
a) Coverage in the SSs shall be compulsory upon all employees not over sixty (60)
years of age and their employers: Provided, that in the case of domestic helpers,
their monthly income shall not be less than one thousand pesos (Php 1 000.00) a
month; provided, further, that any benefit already earned by the employees under
private benefit plans existing at the time of the approval of this Act shall not be
discontinued, reduce or otherwise impaired; provided, further, that any changes,
adjustments, modifications, eliminations or improvements in the benefits to be
available under the remaining private plan, which may be necessary to adopt by
reason of the reduced contributions thereto as a result of the integration, shall be
subject to agreements between the employers and employees concerned;
provided, further, the private benefit plan which the employer shall continue for
his employees shall remain under the employers management and control
unless there is an existing agreement to the contrary; provided, finally, that
nothing in this Act shall be construed as a limitation on the right of employers and
employees to agree on and adopt benefits which are over and above those
provided under this Act.
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b) Spouses who devoted
full time to managing the household and family affairs, unless they are also
engaged in other vacation or employment which is subject to mandatory
coverage may be covered by the SSS on a voluntary basis.
c) Filipinos recruited by foreign-based employers for employment abroad may be
covered by the SSS on a voluntary basis.
The partnership must secure the SSS employee number. Benefits available to the
members are Sickness, Disability, Maternity, Retirement, Death and Funeral, and Salary
Loans Benefit.
I. HOME DEVELOPMENT MUTUAL FUND
With the signing of Republic Act No. 7742, it states in Sec. 4. Fund Coverage-
coverage of the fund shall be mandatory upon all employees covered by the Social
Security System and the Government Service Insurance System and their respective
employers; Provided, however, that the coverage of the employees whose Monthly
Compensation is less than four thousand pesos (Php 4 000.00) shall be voluntary. ;
Provided further, that upon membership with the Fund, their employers shall contribute
an amount in accordance with section 5 of this Act. Such coverage may be extended to
other working groups, with or without employer contributions, as may be determined by
the Board of Trustees.
The employer has fiduciary to register deduct from the salaries the monthly
contributions of its qualified employees and remit these to the HDMF on the prescribed
date.
Procedures of registration for first time member companies
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a. Accomplish
two copies of the Membership Registration/Remittance Form (M1-1)
b. Prepare the following documents (2 photocopies):
- SEC registration or the companys DTI and SSS registration
- R3 and R1 A Forms (SSS Registration and Remittance forms)
c. Present all documents (M1-1, registration and SSS forms) to the
Marketing Division of the concerned Pag-IBIG branch office for
verification (bring all original for authentication). Secure referral slip from
Marketing Department staff.
d. Proceed to offices Cash Division for payment of first monthly remittance.
e. Submit the referral slip prepared by the Marketing Staff and all verified
documents to the cashier.
f. Succeeding remittance date shall depend on the schedule of payment of
the office. Accomplished M1-1 shall serve as the remittance form for
succeeding payments.
g. Submit to the Marketing Office 2 copies of the accomplished Members
Data Form (MDF) of all qualified employees to the Marketing Division on
the second month after the first payment of contributions.
h. The names of newly-hired employees that are covered by RA 7742
should be included in the accomplished M1-1 form and their
corresponding contribution duly remitted to the fund. The accomplished
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MDF of the
new employees shall be submitted on the following month.
J. PHILIPPINE HEALTH INSURANCE CORPORATION (PHILHEALTH)
All government and private sector shall be required to register with Phil Health to
enable them to provide social health insurance coverage by their employees.
Private sector employers, including those of household helps, who have registered
with the SSS prior to July 1, 1999 are considered automatically registered and will only
be required to update their records with Phil Health.
Registration procedures and documentary requirements:
a. Submit the following at any Phil Health Office:
For Government Sector Employers
- Data record of ER1 Form (in duplicate)
- M1a forms for each employee (in duplicate)
For Private Sector Employers
- Employer Data Record or ER 1 Form (in duplicate)
- Business permit/license to operate and/or any of the following:
1. Department of Trade and Industry Registration
2. Securities and Exchange Commission Registration
3. Barangay Certification and/or mayors Permit
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b. After
processing, the employer will be issued the following:
1. Phil Health Employer Number (PEN) and the Certificate of
Registration
2. Phil Health Identification (PIN) and Member Data Record (MDR) of
registered employees
c. Employers are required to display the Certificate of Registration
inconspicuous area.
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V. BUSINESS TIME TABLE
2013 2014
Activities July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
June
FeasibilityStudy
Capitalcontribution
Site Selection
Accomplishm
ent of LegalRequirements
Preparation ofPond, CageDesign,equipment,and workers
Stocking ofCrab Seeds
Feeding of
Crabs
CageMaintenance
CrabFattening
Harvesting,Handling, andDelivering ofCrabs and
Preparationfor new crabseeds
Table 1.1
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The business will commence
after 6 months pre-operating activities. In this span of time, activities such as feasibility
study, capital contribution, site selection, accomplishment of legal requirements, and
preparation of the pond, cage design, equipment and workers, and anticipation of
possible problems are needed to be undertaken.
At the start of the procedure, on the first 3 months of the pre-operating activities
from July to September, contributions and investments of each partner and the site
selection shall be planned according to what is necessary for the business. Planning of
assessment of the feasibility study of the business should also be considered. On the 4th
and 5th month is the completion of all legal requirements for the business.
The last month of the pre-operating activities which is December will be allotted
for the preparation of the pond, cage design, equipment, and hiring of workers. It is
important to prepare the site for the start of the operation of the business for the
following month.
January will be the start of the operation and this month will be allotted to the
feeding and stocking of crab seeds. The early months will be the most critical part of
crab growing phase. The pond supervisor and the workers must ensure that the crab
seeds are well fed and the pond must be maintained. On the next 3 months of the
operation will be the feeding and alternately maintaining the pond and the cages.
On the following month, it will be allotted to the crab fattening where some crabs
will be stored in a special cage and will be fed twice a day. This will be done in 10-15
days. June will be the busiest month of operation because it will be the harvest and
handling of matured crabs, delivery to markets, the preparation of the pond and cages,
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and the storing and feeding of
the crab seeds.
VI. ORGANIZATIONAL STRUCTURE
Figure 1.1
The organizational structure presented above shows the position that is needed
for the operation and administration of the business. The General Partners are located at
the uppermost level of the hierarchy. They are the one who will have the highest position
in the business. Next to them are the Accountant and the Managing partner which will
report to the General Partners. The Managing partner will be in-charge in the decision
making and ensuring that the business operations are carried out in an effective and
efficient manner. The Accountant, on the other hand, is responsible for the keeping and
maintaining the companys accounting records. He/she will prepare the financial
statements and will be reporting to the general partners any problems he/she will
encounter during the business operation.
Under the Managing partner are the Pond Supervisor and the Facility Supervisor.
The Pond Supervisor will take over the pond site and will ensure that the site is
observing proper sanitation. He is also responsible in the acts of his subordinate. The
Facility Supervisor will be responsible in the office of the business. He is also expected
to take charge of the office equipment and maintain proper usage of the facilities of the
company and in the cleanliness of the office and observe good customer relationship.
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The two supervisors will
report to the managing partner regarding the operations in their respective sites.
The Pond Supervisor has three (3) subordinates, the Feeding, Maintenance, and
Harvesting and Handling Personnel. The feeding personnels responsibility is to feed the
crabs and to maintain a good quality of crabs. The maintenance personnel will be on
maintaining the proper structure of the cages and the pond site, and to clean and to
prepare the fattening cages and the hatchery. Harvesting and Handling Personnel will
take charge on the harvesting of the crabs that are already mature, and for the proper
handling before delivering to the customers.
Lastly, the Facility supervisor has two (2) subordinates which are the cashier and
the driver. The cashier will be handling and recording the receipt of payment from the
customers and is responsible for the safekeeping of the cash in the cash drawer. The
drivers will take over on the delivering of the crabs to the customers and is also
responsible in obtaining new customers that they will encounter along their way.
VII. MANPOWER REQUIREMENTS
The business will be having a managing partner who will act as the over-all
manager of the company. Under the managing partner are the pond supervisor and the
facility supervisor. The pond supervisor will take care of the pond and other activities in
the pond site and will be the one in command after hiring the personnel for feeding,
maintenance, and other workers who will work for the harvesting and handling. The
facility supervisor will be the one who will manage and maintain the condition of the
office in Cavite, the equipment and supplies. The driver will help in delivering the crabs
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and other transportation
activities. The cashier will be the one to record all the expenses incurred during the
operation and will take charge on the compensation of other workers. The accountant
will be in charge in the whole accounting process and in the preparation of the financial
statements.
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MANPOWER
REQUIREMENT OF I-CRAB-YOU:
Position Number of People Type of employee Number of Working
HoursManaging Partner 1 Regular 8 hours
Accountant 1 Regular 8 hours
Pond Supervisor 1 Regular 8 hours
Facility Supervisor 1 Regular 8 hours
Cashier 1 Regular 8 hours
Driver 2 Regular 8 hours
Feeding Personnel 5 Regular Irregular
Maintenance
Personnel
5 Regular Irregular
Harvesting and
Handling Personnel
5 Regular Irregular
Table 1.2
The three general partners are composed of Mr. Jessel V. Lerio, Mr. Carlo Paolo
Basa, and Mr. Earl Christian C. Bolos. Mr. Lerio, a graduate of Aquaculture course, will
be the managing partner and will be choosing the personnel and workers that their
business will hire. The success of the business depends on the performance and
attitude of its personnel and employees. This part will discuss the following job analysis
for each of the organizations personnel and employees with their corresponding
qualifications.
Accountant
He or she shall help the manager in implementing good internal control and is
responsible in the whole accounting process. The accountant should maintain
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proper and good
relationship among his or her co-workers. An individual in this position is also
responsible for the preparation of the financial statements.
Qualifications:
Male or Female, 25-35 years old
Must be a Certified Public Accountant
With at least 2 years work experience
Has a proficient and strong knowledge in MS Excel and other MS
Office
With excellent written and verbal communication skills
Hardworking, self-motivated, and a team leader
Pond Supervisor
He shall implement good internal control of the business in the pond site and
be responsible in directing and leading his subordinates. He is responsible for the
smooth operations of the farm in Cavite and maintains proper relations between
workers inside the pond site. An individual in this position prepares the program
about crab growing report. He must find ways to make the company more
productive. He must also communicate information that happens in the pond to
the managing partner.
Qualifications:
Male, 25-35 years old
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Must
be a graduate of any business or aquaculture related course.
Has a proficient knowledge in aquaculture works or business
With a strong leadership background
With excellent written and verbal communication skills
Hardworking, self-motivated, and a team leader
Skilled in problem analysis and decision making skills
Facility Supervisor
He shall implement good internal control of the business in the office and be
responsible in directing and leading his subordinates. He is responsible for the
smooth operations of the farm in Cavite and maintains proper relations between
workers inside the office. A facility supervisor prepares the program about
operating report. He must know the problem that the business is facing to make
company more productive and communicate information that happens in the
office to the general partners.
Qualifications:
Male, 25-35 years old
Must be a graduate of any business or aquaculture related course.
Has a proficient knowledge in aquaculture works or business
Used to do some office works
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With
excellent written and verbal communication skills
Hardworking, self-motivated, and a team leader
Has a knowledge in maintenance of pond equipment
Skilled in problem analysis and decision making skills
Cashier
Her main responsibilities are to receive cash payments, issue receipts, refund
and credit charges due to customers. She must report cash collections and
expenses every time she will encounter changes.
Qualifications:
Female, 20-30 years old
At least college level
Computer literate
With good communication skills
Service oriented, organized and can work with pleasant
disposition even under stressful conditions
Must have taken fundamentals of accounting principles.
Drivers
The most important duty of the driver is to deliver the crabs to Seaside
Macapagal in Pasay City drivers are also expected to help with the loading and
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unloading of their
products and make sure that their vehicles are maintained in good working
condition. Package delivery service drivers and those whose job involves sales
often have to accept payment for services and handle other paperwork related to
the delivery. Some may be responsible for obtaining new customers along the
delivery route.
Qualifications:
Male, 25-35 years old
Has a professional drivers license certified by the LTO
Must be physically fit
At least high school graduate
Service oriented and efficient
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Pond Personnel
They are responsible for the feeding, maintaining, harvesting, and handling of
the crabs and the pond site. They must do their best to maximize the production
according to the desired measurement in order to achieve higher profit. They
must also maintain the cleanliness in all aspects.
Qualifications:
Male or Female, 20 years old and above
Hardworking
Has a knowledge regarding aquaculture aspects
Must be physically fit
Service oriented and efficient
MANPOWER RECRUITMENT AND TRAINING
The positions to be hired by the general partners will only be the accountant, pond
supervisor and facility supervisor. The pond supervisor and facility supervisor will be in
charge of their subordinates. Requirements such as resume, National Bureau of
Investigation clearance, police clearance, medical certificate, birth certificate, and school
credentials (college/high school diploma, certificate of good moral character, transcript of
records, recommendations), drug test, SSS and TIN, and certificate of employment from
previous employer shall be needed in order to assess well the people who will work in
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the business. Any erroneous
information that the applicant would give shall be a ground for non-acceptance.
Interviews will be scheduled right after the submission of the said requirements for those
who will qualify in the job qualification.
The two mentioned supervisors that will be accepted shall undergo one month
training for them to be familiar with their duties and responsibilities, as well as the
business internal control and process. At this phase they will be considered employees,
which is why they will also be oriented on how they are expected to perform and how
compliance to the companys rules and regulations are of vital importance. The
supervisors chosen tasked with hiring shall give the orientation and supervise the
training of new employees, with the consent of the partner.
VIII. SALARIES AND COMPENSATION SCHEME
EMPLOYEES BASIC PAYACCOUNTANT Php. 14,982/month
FACILITY SUPERVISOR Php. 12,030/month
POND SUPERVISOR Php.12,030/month
CASHIER Php. 9,386/month
DRIVER Php. 9,087/month
FEEDING PERSONNEL Php. 349.50/ day
MAINTENANCE PERSONNEL Php. 349.50/ day
HARVESTING AND HANDLING PERSONNEL Php. 349.50/ day
Table 1.3
Computation of Overtime Pay
On Ordinary day
Regular hourly rate= minimum wage rate/ 8 hours
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Overtime rate= regular
hourly rate + 25% of regular hourly rate
On rest day and special day
Hourly rate= 130% of regular hourly rate
Overtime rate= hourly rate on rest day + 30% hourly rate on rest day
On rest day which falls on a special day
Hourly rate= 150% of regular hourly rate
Overtime rate= hourly rate + 30% of hourly rate
On a regular holiday
Hourly rate= 200% of regular hourly rate
Overtime rate= hourly rate + 30% of hourly rate
On a rest day which falls on a regular holiday
Hourly rate= 260% of regular hourly rate
Overtime rate= hourly rate + 30% of hourly rate
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IX. EMPLOYEE
BENEFITS
A. SOCIAL SECURITY SYSTEM CONTRIBUTION
Republic Act No. 8282, otherwise known as the Social Security Act of 1997, refers to
the social security system in the Philippines that is initiated, developed, and promoted by
its Government. The social security system is aimed at providing protection for the SSS
member against socially recognized hazard conditions, such as sickness, disability,
maternity, old age and death, or other such contingencies not stated but resulted in a
loss of income or results to a financial burden.
The employees and his/her employer(s) are to contribute for the social security
benefits of the said employee in accordance to a given schedule by the Philippine Social
Security System. Monthly employee contribution depends on the employees actual
monthly salary.
B. CONTRIBUTION TO PHILHEALTH
The employee and his/her employer(s) are to contribute for the medical insurance of
the said employee in accordance to the Republic Act 7835 on Medicare Program which
is administered by the Philippine Health Insurance Corporation (Phil Health). Monthly
employee contribution depends on the employees actual monthly salary. The
contribution schedule is provided by Phil Health
C. CONTRIBUTION TO HDMF (PAG-IBIG)
The employer(s) is/are required to contribute not more than Php. 100.00 per month
to the employees Home Development and Mutual Fund. In accordance to the periodic
remittance schedule provided by HDMF, the employer(s) will remit this contribution in
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addition to that of the
employees which is to be deducted from his/her salary.
D. VACATION LEAVE
Book III, Chapter III of the Labor Code of the Philippines covers the employees right
for Service Incentive vacation leaves. This basically entitles the employee working in the
Philippines a yearly service incentive leave or in other words, a paid leave of five days.
All employees are eligible for vacation leave for five (5) days in the business with pay.
E. PATERNITY LEAVE
The paternity leave shall be for seven (7) days, with full pay, consisting of basic
salary and mandatory allowances fixed by the Regional Wage Board, if any, provided
that his pay shall not be less than the mandated minimum wage.
F. MATERNITY LEAVE
Maternity leave benefits in the Philippines are stipulated by law for both the public
and the private sectors in the land, in favour of women workers. Female employees,
whether married or unmarried, shall be entitled to maternity leave of sixty (600 days for
normal delivery or seventy-eight (78) days for Caesarean delivery with pay equivalent to
the normal rate of daily salary.
G. SICK LEAVE
This shall be granted to all employees suffering from illness. He/she may leave work
ten (10) days provided that he/she is able to present a medical certificate from an
authorized and certified doctor.
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H. BONUS
Bonus is paid gratuitously to the employees for his industry or loyalty; hence, it is
neither generally enforceable nor demandable. Midyear bonus, equivalent to ten per
cent (10%) of net income after tax on prior year, shall be given to the employees who
work in the company for at least one year. This bonus shall be divided pro-rata, based
on the basic pay of the employees. No bonus shall be distributed if no profit is earned.
I. THE 13TH MONTH PAY
As mandated by the Presidential Decree No. 851, the employee shall receive a
bonus salary equivalent to one (1) month, regardless of the nature of his/her
employment, not later than December 24 of every year.
X. BUSINESS POLICIES
A statement of policies will enable the company to achieve efficient and effective
operations which will be beneficial in every part of the company as well as the customers
and the general public. This statement cannot cover all circumstances or anticipates
every situation thus, advising the manager to apply the overall philosophy and ethical
standards observed by personnel and staff. Any violation may result to disciplinary
action, which might lead to termination of the contract with the employee.
A. ASSET RELATED POLICIES
To safeguard the assets of the company whether tangible or intangible and to
maximize utility
The assets of the company are to be solely by the personnel having the right
of administration over it.
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The companys
assets shall be for the use and for the future benefits of the company and
only for valid business purposes. Other than such is strictly prohibited by the
administration.
No one is allowed to transfer without consideration any companys asset to
other people except in the ordinary course of business or in valid reasons
provided that it is known and with consent of the partners.
Confidential information purporting to the assets of the company should not
be disclosed to employees who do not have a business need-to-know and to
external entities until it has been notice to public.
The acquisition of assets other that inventories are to be discussed and
decided by the partners.
B. EMPLOYEE RELATED POLICIES
Establish the duties and responsibilities that the employee must adhere to as a
condition of employment.
Every employee must wear their prescribed uniform
Each shall perform their work effectively and efficiently while considering the
terms of their contract
Punctuality must be properly observed and this will be monitored through
daily time Bundy clock system upon their arrival and departure on the
workplace. The workers are encouraged to arrive at the working area thirty
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(30) minutes
earlier for them to prepare and properly groom themselves for their work.
Excused and unexcused tardiness shall correspond to payroll deduction
effecting after fifteen (15) minutes grace period. Therefore, if an employee
reports to work 16 minutes after the start of the shift, he/she shall be
considered late for the said time. The standard computation in the salary
deduction on tardiness is:
Actual Rate per Hour = Rate per minute
60 minutes
Excessive absenteeism and tardiness disrupt operation and place additional
burden on co-workers. Abuses therefore will be subject to disciplinary actions.
Failure to adhere regarding employees respective schedule has its equitable
sanctions which shall be imposed by their attending superior.
Consumption of alcohol and taking cigarettes during office hours are strictly
prohibited.
No one shall engage themselves to other business that will create conflict of
interests and will deteriorate the quality labour.
The company implements its own progressive disciplinary measures for
offenses in their varying degree or frequency. The rulings apply to any and all
employee conduct that the company finds necessary to be addressed. All
sanctions and performances standards herein stated underlie from business
desire to provide safe and protective environment for the general interest.
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Oral reprimand,
written notice, suspension and termination are the some sanctions executed
granting due process.
OFFENSES AND PENALTIES
VIOLATIONS ONFIRST
OFFENSE
SECOND
OFFENSE
THIRD
OFFENSE
FOURTH
OFFENSE
1) Performance of
Duties and
Responsibilities
2) Professional
Behaviour
Warning
Suspension
for one (1)
day
Suspension
for one (1)
week
Termination
3) Attendance Policies
4) Safety
5) Security
6) Company property
maintenance
Warning
Suspension
for three (3)
days
Suspension
for two (2)
weeks
Termination
7) Trust and Confidence
8) Misappropriation of
company funds
9) Any act contrary to
laws, morals, and
good custom
Termination
Table 1.4
Performance of Basic Responsibilities and Policies
Leaving workplace without permission
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Sleeping
during working hours
Negligence or poor work performance
Noncompliance with proper uniform
Professional Behaviour
Improper behaviour toward clients and customers
Working under influence of prohibited drugs (immediate dismissal)
Noncompliance with proper uniform
Violation of Attendance Policies
Tardiness
Frequent absenteeism without justifiable cause
Safety
Smoking in the workplace
Working under influence of alcohol
Noncompliance with proper usage of dangerous equipment policies,
especially in the workplace
Noncompliance with health, safety, and environmental policies
Security
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Entering to
restricted areas off the company without proper authorization
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Company Property
Maintenance
Misuse or destruction of company supplies, tools, equipment, and other
properties
Vandalism
Trust and Confidence & Misappropriation of Company Funds
Act of swindling or estafa
Destruction of company records and documents; submission of fake
documents for appreciation for employment
Theft of company properties
C. EMPLOYER RELATED POLICIES
Establishes the duties and responsibilities of the employers (the managers and the
general partners)
Each employer shall be in their corporate suit upon entering the
companys premises to be identified by the employees.
Each shall properly implement operating policies and maintain pleasing
behavioural conduct to establish a vigorous working environment.
Each shall adhere to their respective working schedules.
Employer must not engage themselves to other businesses that
demeanour the interests of the company and will eventually resulted to
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poor and
efficient operation.
Superiors must assure that their subordinates are working effectively and
efficiently while taking into consideration the terms and conditions of the
contract.
D. COMPENSATION POLICIES
All the members of the organization shall receive compensation with the
average salary that is imposed by the managing partner in conformity with
the labour code and relative to the acquired position.
Salaries payment will be on every 15 th and 30th day of each month
following the imposition of the National Wages and Productivity
Commission under the Department of Labour and Employment. Each
amount is subject to increase on the 3 rd to 5th year of operation as one of
the proponents assumption.
E. ENVIRONMENTAL AND SOCIAL POLICIES
The company shall provide a safe and healthy work place for its members
and must abide safe operating procedures.
Operations of the company implemented by the partners shall consider
environmental aspect to prevent destruction of natural creation.
Operating policies developed by the partners shall consider local and
national economy for the common benefit mankind such as justifiable
increase of the prices of the crabs.
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XI. INTERNAL CONTROL
Any organization, no matter how small or big it is, enforces an internal control
designed to direct, monitor, and measure its resources. This is done to produce reliable
financial reports, timely feedback on the achievement of operational and strategic goals,
and to check compliance with laws and regulations. Internal control procedures reduce
process variation and risk of errors and irregularities resulting from any intentions
leading to more predictable outcomes.
SEGREGATION OF DUTIES
The company strictly implements that no employee shall singlehandedly manage
a transaction. The designation of related duties specifically pertaining to approval or
authorizing transactions, physical custody, and record keeping shall be designed to
different individuals.
PHYSICAL CONTROLS
Adequate security over access to assets and records are made through various
ways. These include the use of safes for cash and business papers, locks for storage
room and cabinets for supplies and records and pass keys for computer facilities.
The company also installs CCTV camera and alarm to prevent break-in and theft.
Bundy clock is used to assist in tracking the hours each employee worked.
PERFORMANCE REVIEW
Periodic review and analysis of actual performance set against budget, forecasts,
and prior period performance are included in the control activities of the company.
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Customers surveys may
be done in determining what actions are needed to be taken to improve and enhance
customer satisfaction, loyalty, and desired business outcomes.
CASH RECEIPTS
Responsibilities for cash receipts function will be segregated from cash
disbursement.
1. All cash receipts shall be evidenced by an official receipt.
2. Responsibilities for collecting, depositing, and accounting for receipts
shall be performed by the cashier, general manager, and the
accounting supervisor, respectively.
3. Cash receipts should be deposited on a daily basis and properly
recorded.
4. Responsibilities for preparing and approving bank account
reconciliations will also be performed by the accounting supervisor.
5. The bank account should be reconciled within thirty (30) days of the
statement date.
6. All shortages and/or overages must be investigated and to the extent
possible, corrected.
7. Duplicate deposit slips will be prepared and validated by the bank,
and compared with amounts recorded in cash receipts record.
CASH DISBURSEMENT
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1. All check
vouchers will be pre-numbered.
2. Signature of any of the partners and that of the general manager shall
be present before the checks can be issued.
3. Bills or vouchers shall be presented with checks for signature.
PAYROLL
o Detailed record of hours worked shall be maintained and approved, if
appropriate.
o Responsibilities for supervision and timekeeping are assigned to the
facility supervisor while payroll processing, disbursement, and general
ledger functions shall be assigned to the cashier.
o Completed payroll charges shall be reviewed by any of the partners
before disbursements are made. Upon approval, the partner can already
prepare the checks to be distributed by the accounting supervisor to the
employees and pond personnel, then, shall sign the payroll sheet as proof
to the receipt of the checks.
o Pay day will be on the fifteenth (15th) day and the end of the month for
regular employees and every after work for non-regular employees.
CAPITAL ASSETS
o Responsibilities for the property record function shall be assigned to the
facility supervisor while general ledger function shall be to the cashier.
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o Written
procedures shall be implemented for safeguarding of equipment against
improper o unauthorized use.
o Adequate provisions will be made for safely storing equipment.
o Facility control such as locks shall be provided for the equipment and
authority to such shall be designated to those in charge of the operation
of such assets.
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MARKETING ASPECT
I. INTRODUCTION
The most important part of feasibility study is the marketing aspect. This aspect
discusses the demand and supply for the study ofMud Crab Farming.
The marketing aspect aims to answer whether the demand gap exists, as well as the
pricing for producing mud crab. The target market ofI Crab Uis also determined here.
The survey conducted is discussed in this particular aspect, with each having a specific
relevance and purpose to the feasibility study.
II. MARKET DESCRIPTION
Crab Farming has become an integral part of aquaculture in the country. This
practice began in the early seventies when some fishpond operators in Bicol, Visayas
and Southern Tagalog started to culture crab as a subsidiary crop in milk fish or
bangusponds.
As of now, CRABS are one of the aquatic commodities that demand high prices in
the local and international markets. In the Philippines, the mud crab ( ScyllaSerrata ) or
alimangoand the blue crab ( PortunusPelagicus ) oralimasagare the most common
species harvested for local consumption and export. It is also considered a delicacy and
has become a popular fare in seafood restaurants. Moreover, MUD CRABS are sought
for its very tasty aligue or ripe eggs in the ovary, especially female crabs. It is also
highly-esteemed gourmet seafood in Hong Kong, Taiwan, Malaysia, Singapore, China
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and Japan. The Philippines is
a mud crab exporter to these countries.
Growing mud crabs and other fish species is envisioned to be a major aquaculture
program since the Philippines is among worlds biggest fishery producers. In 2011, the
country produced 15,730 metric tons of mud crabs. According to the Bureau of
Agriculture Research (BAR), growing mud crabs is a profitable venture. A farmer can
harvest 1,200 kilograms of mud crabs per hectare per cropping of five months. At P400
per kilo, it can give an additional income to farmers of P480, 000 per cropping or P960,
000 for two cropping a year. Hence, we do not only fulfil the primary function of
aquacultural sector which is to provide the domestic needs of consumers. It is also able
to benchmark the local products as good in terms of quality as with the exportable
goods, therefore adding not only income to the country but prestige for the world class
products of the Philippines.
III. TARGET MARKET
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Figure 2.1
The primary objective of I Crab U is to be the core of Crab Farming Industry,
specifically Mud Crab distribution, by being the major supplier of the best quality mud
crabs with reasonable and economic pricing in the Philippines specifically in the Wet
Markets in Seaside Macapagal Blvd., Pasay City. With this goal in mind, the company
has chosen this as its target market.
The company shall deliver its product at the said markets which shall then serve as
the business channel to provide the consumers with the highest quality mud crabs
present in the industry.
IV. SURVEY SUMMARY AND INTERPRETATIONS
A survey was conducted to gather primary data with regards to the supply and
demand of mud crabs and their willingness to accept new suppliers.
Survey questionnaires were distributed among the wholesalers in the wet market of
Seaside Macapagal Blvd., Pasay City. The respondents who answered the survey are
also the potential customers our company wishes to serve.
A. Sampling Method
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In determining
whether there would be a market share for this proposal, the proponents would need
to gather data and test its feasibility. As a way of data gathering, the proponents
decided to use Convenience Sampling.
Convenience Sampling is a non-probability sampling technique where subject
are selected because of their convenient accessibility and proximity to the
researcher.
B. Results of the Survey
1. Do you sell crabs?
All the 16 respondents answered that they are selling crabs.
2. Where do you get your crabs?
Figure 2.2
From the 16 respondents, 12 are getting their crab supplies from their suppliers while
4 of them are producing their own supplies.
3. How many kilos do you order in a week?
Figure 2.3
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From the 16
respondents, 4 respondents order up to 100 kg per week. 5 respondents order up to 200
kg per week, 2 orders up to 300 kg per week and 1 orders upto 700 kg per week.
4. From whom do you get your crab supplies?
Out of 12 respondents, 6 are getting their supplies from Roxas City, Capiz. The
remaining 6 are getting from other suppliers located at different locations like Bicol and
Bataan.
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5. How many kilos do
they supply in a week?
Figure 2.4
Out of the 12 respondents who get their crabs from suppliers, 5 are being
supplied up to 100 kilos per week, another 5, with 101-200 kilos a week. The remaining
2 are being supplied with 201-300 kilos and 301-400 kilos a week each.
6. How much do you pay per kilo?
Figure 2.5
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From the sixteen
respondents, 7 respondents pay from 250.00-400.00 per kilo, 4 of them pay 401.00-
550.00 per kilo and 1 pays from 851.00-1000.00 per kilo.
7. What incentives do they offer?
Most of the respondents, 11 out of 16, often get discounts and incentives from
their suppliers. The discount they get from their suppliers ranges from 3% to 15%.
8. Is there any peak/lean season in selling crabs?
The respondents answered that the peak season for crab purchase is usually
from the months of September to January, the Christmas Season. And for the lean
season, the respondents said that crab purchase is low during March, June up to
August.
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9. Are you willing to
accept new suppliers?
Figure 2.6
From the 16 respondents, 12 are willing to have a new crab supplier while 4 of
them answered that they are not willing.
V. DEMAND STUDY
Essential to this study, is the analysis of the demand. Demand here refers to the
schedule or curve indicating how much of a product would be demanded at various
possible prices, assuming other things are constant. Furthermore, an existing demand
for the product is important for the business to penetrate and continue its operation for
years.
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A. DEMAND ANALYSIS
Historical Demand
Year Demand
2009 128700
2010 129168
2011 129064
2012 136708
2013 138840
Table 2.1
Figure 2.7
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Projected Demand
Year Demand
2014 140816
2015 1436242016 146432
2017 149188
2018 151996
Table 2.2
Figure 2.8
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1. Key Notes and
Observations
Historical demand is based on the behavior of the overall demand
of mud crab in previous years of the country as given by the Bureau of
Agricultural Statistics (BAS) and Bureau of Fisheries and Aquatic
Resources (BFAR).
The method used in projecting the demand is linear trend analysis
since it is simple yet yields a close to real projection. Computations and
tests of which can be seen in the appendix.
All units are in kilograms (kg)
VI. SUPPLY STUDY
A. SUPPLY ANALYSIS
Historical Supply
Year Supply
2009 101348
2010 102440
2011 104312
2012 104676
2013 105976
Table 2.3
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Figure 2.8
Projected Supply
Year Supply
2014 107224
2015 108368
2016 109512
2017 110656
2018 111800
Table 2.4
Figure 2.9
1. Key Notes and Observations
Historical supply is based on the behavior of the overall supply of
mud crab in previous years of the country as given by the Bureau of
Agricultural Statistics (BAS) and Bureau of Fisheries and Aquatic
Resources (BFAR).
The method used in projecting the supply is linear trend analysis
since it is simple yet yields a close to real projection. Computations and
tests of which can be seen in the appendix.
All units are in kilograms (kg)
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VII. DEMAND-SUPPLY ANALYSIS
Demand Gap
Year Demand(d) Supply(c) Demand Gap
(d-c)
Sufficiency
Level (c/d)
2014 140816 107224 33592 76.1448%
2015 143624 108368 35256 75.4526%
2016 146432 109512 36920 74.7869%
2017 149188 110656 38532 74.1722%
2018 151996 111800 40196 73.5546%
Table 2.5
Figure 2.10
VIII. PRICE STUDY AND PRICING STRATEGY
The price of the crabs is determined by using the data gathered from the survey. It is
computed by getting the average price that the potential customers are paying their
current suppliers. The proponents arrived at the average price which is Php. 410.00. See
appendix for computations.
IX. Maximum, Practical and Normal Capacity
Maximum capacity is the maximum amount of crabs that the crab pond can
accommodate on a yearly basis. It also assumes that nothing in your production
ever goes wrong and is working at full efficiency all the time.
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Since it is impossible
for a business to operate at 100% capacity, allowances must be made for
unavoidable interruptions, such as spoilage, system failures, holidays and
vacations.
Practical capacity is the level of capacity that includes unavoidable operating
interruptions. Another description is unavoidable losses of operating time.
Consider maintenance on equipment, employee vacations, and holidays. Youre
willing to accept a good, rather than perfect, capacity level.
Normal capacity is the production expected to be achieved on average over a
number of periods or seasons under normal circumstances, taking into account
the loss of capacity resulting from planned maintenance.
Year Maximum Capacity Practical Capacity Normal Capacity
2014 70200 44226 18575
2015 105300 66339 295982016 105300 66339 32511
2017 105300 66339 35424
2018 105300 66339 38323
Table 2.6
A. Market Share
Year Production(a) Demand Gap(c) Market Share(a/c)
2014 18575 33592 55.2959 %2015 29598 35256 83.9517%
2016 32511 36920 88.0580%
2017 35424 38532 91.9340%
2018 38323 40196 95.3403%
Table 2.7
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Figure 2.11
X. SWOT ANALYSIS (Strength, Weakness, Opportunities, Threats)
STRENGTHS:
Year-round production
Values customer relationship
Highly Liquid
Strong workers
Concrete internal control
Highly adept personnel
Does not depend on advertising and promotion
WEAKNESSES:
High cost of production
Lower yield due to pest and diseases
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Continuous
seed stocks for continuous production
OPPORTUNITIES:
Large domestic market/demand
Business expansions
Expected increase in demand for crabs
Emerging new technologies and techniques in producing crabs
Favourable price changes
Availability of supplies and technologies
Future exportation
THREATS:
Competitors
Emergence of pests and diseases
Low entry barrier for potential competitors
XI. MARKETING STRATEGY
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A. PRODUCT
High quality of crabs will be offered in the industry. The crabs that the
company shall focus on is the Mud crabs ( ScyllaSerrata ) or alimango, which is
the most demand type.
B. PLACE
The farm will be situated in Rosario, Cavite. In order to provide for the
demand of the product in Seaside Macapagal Blvd., Pasy City, a warehouse will
be used in said location as a medium of crab production.
C. PRICE
Market-based Pricing. As an aqua cultural-based enterprise, I Crab u
company will be considered as a price taker; grounding the price of its product
with the prevailing market (farmgate) rates for crabs in Seaside Macapagal,
Pasay City.
D. PROMOTION
a. Discounts. Customers buying 200 kgs.- 300 kgs. of mud crabs
will be given 5% discount on their total purchases. For every 100 kgs.
purchase above the 200 kgs. margin will be entitled to a 1% increase in
their discounts.
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b. Per Client Presentation. Marketing representatives will visit
prospective clients to present the production area of I Crab u. This will
emphasize the advantage of choosing the I Crab u over other crab
producing farms.
XII. MARKETING PROGRAM
A. Selling Organization
The company will have a farm and facility supervisor. The farm supervisor
will be the one in charge in monitoring all the activities in the production to
ensure the maximization of time and resources. On the other hand, the facility
supervisor shall be the one in charge in supervising the use of equipment, the
delivery of the mud crabs to the wholesalers as well as to the all transactions
made by the company.
B. Company of Sales
Products will be sold at wet markets in Seaside Macapagal Blvd.,
Pasay City.
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Cost of
delivery will be shouldered by the company.
XIII. MICROENVIRONMENT
The companys microenvironment includes the company itself and its direct and
indirect competitors. They are the forces that affect the companys ability to serve its
chosen target market.
A. Company
While mud crab farming is based on collection of crablets or crabs from the
wild for fattening or grow-out has probably taken place for years, hatchery
production of mud crabs is a relatively recent innovation. With most research and
development taking place over the last decades, I Crab U attempts to
showcase the current wisdom on mud crab farming, significantly applying
techniques that will help us gain sustainable competitive advantage towards
competitors.
B. Customer
Customers satisfaction is the major factor that the company needs to
consider in order to continue its operation in the market. I Crab U will supply well
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cultured crabs to its
customers and will guarantee a organized transactions through its competent
employees.
C. Competitors
Direct Competitors They are the other suppliers that distribute
mud crabs to sellers in the said target market. They affect the
companys profit and customer relationship by limiting the market
share and exposing the target demand with different suppliers to
choose from.
Indirect Competitors They include suppliers that distribute other
seafood products like tilapia, prawn, milkfish, etc.
D. Public
They are the group that has potential interest or impact on the companys
ability to achieve its goals and objectives. I Crab U will establish a very positive
image to the public through building good customer relations and maintaining a
clean slate image.
XIV. MACROENVIRONMENT
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The companys
macroenvironment are the factors that affect its ability to build and maintain successful
relationships with its customers. It includes the Economic, Natural, Cultural, and
Technological factors.
A. Economic Factors
These are the factors that affect the customers spending patterns and
purchasing power. The target market is assumed to have a high spending
capacity but because of different factors, like inflation, spending patterns are still
to be considered.
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B. Natural Environments
This involves the resources/ factors that are needed as inputs by marketers
or that are affected by marketing. One of the most known environmental issues
to date is Pollution. Because of its main product, I Crab U will maintain a clean
and orderly place as wells as will use eco-friendly equipment in order to ensure a
high quality crab supplies.
C. Cultural Environment
This involves the institutions and other forces that affect societys values,
perceptions, preferences and behaviours. Crab is one of the favourite dishes of
the locals as well as the foreign tourists in the Philippines. It is one of the well
served dishes during special occasions and most ordered menu in restaurants. I
Crab U will satisfy this customers food preferences and will continue to provide
well cultured crabs that they can enjoy.
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TECHNICAL ASPECT
I. INTRODUCTION
The technical aspect is treated as one of the most significant part of feasibility study,
regarding the details of how the proposed project will deliver a product or render a
service, including the materials required, the amount of labor needed, the location of the
business, transportation, technology to used, etc.
The technicality of the feasibility serves as the logistical and a tactical overview of
how the business will produce, deliver, and track its produce or services. It is then
treated as a flow chart of how the products and services evolve and move around the
business to physically reach the market.
When a study is then considered to be technical, it is at the same time realized as an
excellent tool for trouble-shooting and long-term planning.
Moreover, the technical aspect must be sincerely taken onto consideration for it
serves a purpose of giving the business a systematized way of handling the product or
the services demanded and successfully bringing them up on the market.
II. DESCRIPTION OF THE BUSINESS
One factor to be considered in making a business existence of a remarkable name,
the more captivating the business representation is and the more the customers will be
interested in the transactions of the company. And because the name of the company
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brought great appeal to the
customers, they may suggest the business to other prospects.
I-CRAB-U reflects that this business has been made for everyone. It also explains
the idea of producing crabs of great quality. The business formulated such name
because of its uniqueness and relatedness to what the business is producing. The name
I-CRAB-U, based on the expression I love you, suggests that the company renders its
service with love and dedication.
III. MEANING OF THE LOGO
Figure 3.1 Business Logo
The logo represents the business' primary reason for its existence, its product which
is crabs. Its color, red-orange, signifies physical energy. The color orange imposes a
great impact by symbolizing hope during tough economic times, keeping us motivated
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and extending a hand in order
for us to look at life on the bright side. The color red is a warm and positive color
associated with our most physical needs and our will to survive in the industry. A heart
shape signifies the strong relationship between the supplier and its customers. A
relationship where in the company's desire of earning profits will not compromise the
quality of the crabs to be given to the customers.
IV. PRODUCT DESCRIPTION
Species Scylla Serrata
Distribution Indian ocean, Pacific ocean, and Red sea- the most widespread Scylla species.
Habitat Associated with mangrove forest inundated with full salinity oceanic water fothe greater part of the year. They can also live in artificial ponds
Growth Habit Mud crabs life span is 1-2 years. From mud crab juvenile, they can beharvested after 4-5 months.
Weight Male mud crabs can grow up to 1.2kg and female mud crabs up to 0.7kg.
Table 3.1 Product Description
V. NUTRITIONAL PROPERTIES OF MUD CRAB
Crab meat is a popular and versatile type of seafood. It is also very healthy and a
good addition to a balanced diet, as it contains many nutrients coupled with a low fat
content.
Crab is an excellent addition to a healthy eating plan. It is low in calories with only
around 85-90 per 100g. It does contain some fat but it is generally saturated fat which is
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considered heart healthy.
Crab is also a natural source of omega-3 fatty acids, which can help to improve memory,
decrease the chances of having a heart attack, decrease risk of cancer, and possibly
help to improve depression and anxiety.
Crab is a low risk of seafood mercury. Many fish, particularly at the higher end of the
food chain, contain dangerous amounts of mercury and are not recommended as
frequently eaten foods. Crab contains many of the benefits of other seafood, but without
the risk of mercury poisoning.
Crab is also a good source of vitamin A, C and B vitamins including B12, and
minerals like zinc and copper. It is a source of selenium, which may be a means of
preventing cancer. Crab also has some chromium, which is considered a useful mineral
if you have insulin resistance as it may improve blood sugar metabolism.
VI. BIOLOGY
Mud crab is a swamp crab that spawns in the sea but the larvae are carried by tide
along the seashore. Juveniles migrate to the tidal flats and marshy lands along rivers. It
becomes sexually mature in the first year of its life after the female underg
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