crab store feasibility

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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


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:


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


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:


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


Overtime rate= hourly rate + 30% of hourly rate

On a regular holiday



On a rest day which falls on a regular holiday



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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