A4 Size Finals

LAGUNA COLLEGE OF BUSINESS AND ARTS
COLLEGE DEPARTMENT
CHAPTER 1
PROJECT BACKGROUND AND HISTORY
Wine is an alcoholic beverage made from fermented grapes and

fruits. The natural chemical balance of grapes lets them ferment without
the addition of sugar acids enzymes water or other nutrients. Yeast
consume the sugars in the fruits and converts the, into alcohol and carbon
dioxide. Wine is a psychoactive drug as are all alcoholic beverages,
commonly used in intoxicating effects today and thorough history.
Nowadays wines are usually used for special occasions. Wines
made from produce besides grapes are usually named after the product
from which they are produced (for example, rice wine, pomegranate wine,
apple wine and elderberry wine) and are generically called fruit wine. The
term wine can also refer to starch-fermented of fortified beverages
having alcohol content, Such as barley wine, huangji, or sake.
The history of wine spans thousands of years and is closely
intertwined with the history of agriculture and Western civilization. The first
evidence of its cultivation is in China circa 7000 BCE, then more
widespread evidence is found soon thereafter in the Near East,
the grapevine and
from fermenting its juice were
the alcoholic
important
beverage produced
to
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Mesopotamia, Israel,

COLLEGE DEPARTMENT
and Egypt and
civilization.
essential
Many
of
aspects
the
of Phoenician, Greek,
major wine-producing
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and Roman
regions of Western
Europe and the Mediterranean were first established during antiquity as

great plantations. Winemaking technology improved considerably during
the time of the Roman Empire: many grape varieties and cultivation
techniques were known; the design of the wine press advanced;
and barrels were developed for storing and shipping wine.( Source:
www.wikipedia/Wine-10978401/.html)
There is a reason why France is a drinking country. In the French
paradox, Dr.Serge Renuad, a scientist from Bordeaux University
observed that French people suffer a relatively low incidence of coronary
heart disease ,despite having diet relatively rich in saturated fats. He
attributed it to drinking of red wine which decreases the incidence of
cardiac disease. Red wine, he said, is rich in resveratrol; a phytoalexin
which is a heart friendly.
In the Philippines, red wine is served only during special
occasions. And because we dont grow grape here, all red wine is
imported, hence it is quite expensive. But given the countrys abundance
in tropical fruits, a group of researchers from Food Science Clusters,
College of agriculture of the University of the Philippines Los Baos
(UPLB) led by Dr. Erlinda I. Dizon revived the idea of producing using local
fruits. There is a large volume of wine importation from other countries.

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Getting a share of the market wines would help our farmers and local food
industries if we could make our own wine using our own grown
fruits,Dr.Dizon explained.
This idea was realized in 2008 through a project titled,
Technology Commercialization and packaging of wine from Selected local
Fruits with funding support of Bureau of Agricultural Research (BAR)
through its national Technology Commercialization Program (NTCP). The
project aimed to showcase appropriately packaged quality wine from
selected fruits and eventually, to expand the market for local fruits wines.
With results from previous studies in wine making, Dr. Dizon
hoped to revalidate the processing parameters to produce a quality wine
from the laboratory scale production and also to improve the packaging of
the products. :we aimed to establish the quality assurance system like the
HACC, GMP, and SSOP for wine processing , evaluate the marketability
and profitability of production system , and enhance the capability of the
technology adopters, she said.
The Philippines, being a tropical country has a wide array of fruits.
According to Dr. Dizon, the country has around 30 kinds of fruits which
their group screened for wine processing. Way back in 1983, we had
already screened almost all of the local fruits and look there for potentials
for wine making. Majority of them were excellent and suitable for wine
making. In fact some are way better compared to grapes in terms of flavor
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COLLEGE DEPARTMENT
and aroma. Out of those 30 different fruits that we screened, bignay, duhat
and carabao mango turned out to be excellent substrates for wine
processing. Bignay and duhat represent red wine and mango, which is
known worldwide for its sweet taste and good aroma, the white wine, she
said.
(Source: http://www.bar.gov.ph/chronicle-home/archives-list/102-july-2010issue/397-bignay-pinoy-posh-red-wine)
Ever since people love to drink wine specially when celebrating
special occasions, sometimes to unwind after work or to socialized with
friends and most wine drinkers buy wine mainly for health reasons
particularly red wine. It is not only good for old people but for the young
one, in moderation of course. But still people cant stop drinking. Wines
are one of the favorite tie-ups for their parties and celebrations.
G and C Manufacturing Company were named after Gelo and Chai
who made a natural and heart friendly wine. Escalofrio: Bignay wine is
ideal to those who are looking for a new taste and healthier wine. Bignay
wine has deep red color, aged in a barrel or drum for at least 4 weeks. The
wine has distinct fruity aroma and smooth flavor that provides consumers
with a delightful experience and it is rich nutritional benefits. We
proponents came up with this product because of its health benefits,
drinking bignay wine helps to reduce the incidence of coronary heart
disease due to its antioxidant properties. G and C Manufacturing Company
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COLLEGE DEPARTMENT
will be located at Halang, Calamba City where raw materials can be easily
acquired. It is commercial areas were people have an easy access on it.
The product will be distributed at the grocery stores, retail stores,
supermarkets in the entire Calamba area.
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COLLEGE DEPARTMENT
CHAPTER 2
MARKET ASPECT
A market is one of many varieties of systems,
institutions,
procedures, social relations and infrastructures whereby parties engaged

in exchange. While parties may exchange goods and services by barter,
most markets rely on sellers offering their goods or services (including
labor) in exchange for money from buyers. It can be said that a market is
the process by which the prices of goods and services are established.
A. Product Description
Product description refers to the benefits, form, presentation, price
and purpose of the product. A product is anything that can be offered to a
market for attention, acquisition use or consumption to satisfy customer
needs and wants. The product is named Escalofrio: Bignay wine. It came
from the Spanish word which means Chill and Bignay wine because it is
made up from the fruit bignay. The proponents company name is G & C
Manufacturing, the letter G is for Gelo and C for Chai, It came from the
name of the proponents.
B. Demand Analysis
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COLLEGE DEPARTMENT
Demand is an important role in analyzing the market stability. It is

simply the needs and wants that are backed up by customers purchasing
power. In determining the demand, the proponents consider the number of
household population.
To compute the historical demand, the proponents find out the
household population of Calamba, Laguna and conducted survey and
personal interview for demand analysis.
The proponents must have to consider the total individual
population ages 25 to 65 in Calamba with 15, 000 pesos monthly income.
After determining the total population the proponents solved the sample
size through Slovins Formula.
Where:
n = Sample Size
(e) = Margin of Error (10%)
N = Total Population
n=
N
(1 + Ne2)
n=
189,419
1+ 189,419(.10) 2
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n=
189,419
1,895
n = 99 or 100 respondents
After determining the sample size of respondents, the proponents
conducted a survey by giving questionnaire to target area. And upon
calculations through tallies, the proponents arrived with 43% of wine
buyers. They come up with this value by considering the proponents

COLLEGE DEPARTMENT
population and income bracket. To get the historical demand, the
proponent multiplied the total population to the percentage of individuals
(100%) based on the survey. Then the result will be multiplied to the
products average annual consumption which is equivalent to 12 pieces
(once a month) also based on the survey conducted
Methods of Projection (Demand)

The mathematical method will use in the proportion of the
demand. It will help the proponents in the determination of the
future demand for the service they will offer, and the higher
projected demand is better.
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COLLEGE DEPARTMENT
I. Arithmetic Straight Line

Yc= a + Y-1
Where:
a= Yn- Yc
N-1
Yc = Initial Value (1st year)

Yn = Final Value (last year)
N = Number of years
Yi = Value for the year past
a = Yn Yc
= 557,119 497,566
5-1
SD =
12,758,656
SD = 1,597
II. Arithmetic Geometric Curve

Yc = Yi + 1
1-r
r= % increase
N-1
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a = 14,888

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Where:
10
Yi + 1 = Value for the year ahead

r = average of increase
r = % increase
11
N-1
SD =
r = 3%
4
21,960,542
SD = 2,096
III. Statistical Straight Line

Yc= a+bx
Where: a = y b x
n
b = nxy - xy
nx2 (x)2
n= number of years
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COLLEGE DEPARTMENT
a = Y- b x
2,642,145
b = nxy - xy =
11
(14,647) (15)
a= 484,487
5
b=14,647
5(8,072,909) (15) (2,642,145)
nx2 - (x)2
SD= (Y-Yc)2
5(55) (15)2
=
6,276,217
SD= 1,120
IV. Statistical Parabolic

Y= a + bx + cx2
Where: a= (x4)( y) (x2)( x2y)
n (x4) (x2)2
c= n(x2y) (x2)( y)
n (x4) (x2)2
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b= (xy)
x2

COLLEGE DEPARTMENT
a = (34)(2,642,145) (10)(5,277,163)
a = 529,447
(5)(34) (10)2
b = 146,475
b = 14,647
10
c = (5)(5,277,163) (10)(2,642,145)
(5)(34) (10)2
SD =
2,648,546
5
c = -509
SD = 728
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The proponents have used Statistical Parabolic to project the

Historical Demand for it has the lowest Standard Deviation.
C. Supply Analysis
Suppl y is the total amount of good and service available
for purchase by consumers. It is the amount of commodity
available for meeting a demand or for purchase at a given
price.
Here, the indirect competitors are identified and the type
of competition that exists is determined in order to cope with
anal ysis on how to handle it. The proponents have conducted
an actual survey in different manufacturing, store, and markets
in Calamba City as indirect competitors for reference and
comparison.
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Source: Actual interview

Methods of Projection (Supply)
Within
the
projection
of
the
supply,
it
engaged
in
mathematical method computation under each method it will

help us to determine the future supply of the service to be
offered. The lower projected suppl y is better.
I.
Arithmetic Straight Line

Yc= a+Y-1
a=
Yn-Yi
n-1
Where: Yc = Initial Value (1st year)

N = Number of years
a=
Yn Yc
Yn = Final Value (last year)

Y = Value for the year past
= 197,121 187,763
a = 2,339

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N-1
SD =
15
5-1
9,659
SD = 44
II.
Arithmetic Geometric Curve

Yc = Yi + 1
r= % increase
1-r
N-1
Where: Yi + 1 = Value for the year ahead

r = average of increase
r = % increase
N-1
= 5%
4
SD =
236
5
r = 3%
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SD = 7

COLLEGE DEPARTMENT
III.
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Statistical Straight Line

Yc= a+bx
Where:
a = y b x
b = nxy - xy
nx2 (x)2
n= number of years
a = Y- b x
n
b=
SD=
962,041
n
nxy - xy
nx2 - (x)2
(Y-Yc)2
N
(2,339) (15)
5
=
a = 185,390
5
5(2,909,516) (15) (962,041) =
5(55) (15)2
=
3,977
5
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b = 2,339
SD = 28

COLLEGE DEPARTMENT
IV.
17
Statistical Parabolic
Y= a + bx + cx2
Where: a= (x4)( y) (x2)( x2y)
b= (xy)
n (x4) (x2)2
x2
c= n (x2y) (x2)( y)
n (x4) (x2)
a = (34) (962,041) (10) (1,924,317)

(5)(34) (10)
b = 23,394
a = 192,374
b = 2,339
10
c = 17
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COLLEGE DEPARTMENT
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c = (5) (1,924,317) (10) (962,041)

(5)(34) (10)2
SD = 1,144
SD = 15
Projected Supply
The
proponents
used
Ar ithmetic
Geometric
because it has the lowest standard deviation which is 7.
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COLLEGE DEPARTMENT
D. Demand and Supply Analysis

An analysis shows the quantities available that regulate the price. The
proponents get the demand from the survey of their indirect competitors.
The proponents have noticed that the Statistical Straight Line Method has
the least standard deviation in computing the demand and supply.
Formula for Demand and Supply Analysis

UD- Unsatisfied Demand
UD= Projected Demand Projected Supply
E. Market Share
Market share is a specific percentage of the sales volume of a total
market. It is also the percentage or proportion of the total available market
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or market segment that is being serviced by a company. Increasing market

share is one of the most important objectives in business. This is the
determining factor of the business in the market.
Formula for Market Share:

Market Share= Unsatisfied Demand x Acceptance Factor
100
Projected demand
F. Price Study
Pricing of the product is one of the most crucial business decisions that
should be made. Products must be offered at a price the target market is
willing to pay and that will produce a profit for company. Price is the factor
that affects the buying behavior of the consumers. The price of the product
greatly depends on the expenses incurred during the manufacturing of the
product.

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Source: Actual Survey

G. Factors Affecting the Market
There are certain factors affecting the market that may not
be difficult to quantify. This is essential to foresee the other
possibilities of the business problem that the business may
encounter in the near future.
G.1 Factors Affecting the Demand
Price of the Product
There is an inverse (negative) relationship between the

price of a product and the amount of that product consumers
are willing and able to buy. Consumers want to bu y more
products at a low price and bu y fewer products at a high price.
This
inverse
relationship
between
price
and
the
amount
consumers are willing and able to bu y is often referred to as

The Law of Demand.
The Consumer's Income
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COLLEGE DEPARTMENT
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The effect that income has on the amount of a product

that consumers are willing and able to buy depends on the type
of
goods.
For
most
goods,
there
is
positive
(direct)
relationship between a consumer's income and the amount of

the good that one is willing and able to buy. In other words,
when income rise the demand for the product will increase;
when income falls, the demand for the product will decrease.
We call these types of goods normal goods.
The Price of Related Goods
As with income, the effect that this has on the amount

that one is willing and able to buy depends on the type of
good. Think about two goods that are typicall y consumed
together.
It
The Consumer's Expectations
doesn't
matter
what
is
currentl y
going
on
one's
expectations for the future can also affect how much of a

product one is willing and able to bu y.
The Number of Consumers in the Market
As more or fewer consumers enter the market this has a

direct effect on the amount of a product that consumers (in
general) are willing and able to buy.
Price
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23
The price of a product is one of the most basic factors

affecting the demand for that product. The amount of a certain
product that a consumer bu ys depends on its price. An inverse
relationship exists between the price of the product and the
quantity that consumers are willing to purchase. This means
that as the price of a product goes up, people will bu y less of
that product. As the price goes down, people will buy more.
This relationship is called the law of demand.
G.2 Factors Affecting the Supply
The Current State of Production Technology
Production of goods involves taking inputs, appl ying a

process
to
them,
and
producing
an
output.
Production
technology is involved in the process part. Increase in the level

of production technolog y can make that process more efficient.
The Producer's Expectations
It just doesn't matter what is currently going on - one's

expectations can also affect how much of a product one is
willing and able to sell.
Number of Producers in the Market
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As more or fewer producers enter the market this has a

direct effect on the amount of a product that producers (in
general) are willing and able to sell. More competition usually
means a reduction in supply, while less competition gives the
producer an opportunity to have a bigger market share with a
larger suppl y.
Raw Materials
The production is affected when there is a shortage in

the supply of raw materials. Therefore raw materials should
always be readily, so dela y in the production is avoided.
Government Policies
Every business must follow the government policies and

regulations. Government restrictions may lower the supply of
the compan y when it cannot cope and meet these restrictions.
Firm
operating
within
the
national
boundaries
should
be
regulated by the government institution in order to protect the

industries economic of scale.

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25
The business policies made by the government also

affect the suppl y in the market. Since everything that is
tangible is taxable, the greater suppl y the greater taxes to be
paid by all.
Cost of Establishment
The cost of establishment is a determining factor that

greatly influences that availability to start a business. There
should
be
sufficient
sum
of
money to
pa y necessary
expenditures.
G.3 Factors Affecting the Price
Labor Cost
This affects the price because when the labor is not

satisfied
by
their
compensation,
it
tends
to
lower
their
efficiency in the production. A decrease in production means

an increase in the expense of the business and labor cost is
one of the ingredients in deciding the price of a certain
product.
Tax
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COLLEGE DEPARTMENT
Tax
is
rate
imposed
by
the
26
government
on
the
properties or persons to raise revenues. Wherein, a portion of

the price of the product contributes to government funds.
Price Control
Regulation for the price control being imposed by the

government is important to maintain the market stability and
ensures the capital.
Production Cost
The business should know how to effectivel y lower its

production
cost
without
compromising
the
quality
of
the
product. Thus, an increase in the production cost results to an

increase in the product price. To be able to stay competitive in
the market, a business should have a competitive price of
products
H. Marketing Program
Marketing is one of the important factors to consider in
having successful business operations. It is design to sell the
product effectivel y to the target market. Through the marketing
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COLLEGE DEPARTMENT
27
program, the business can offer to customers the product at

the right place with the right promotion.
Marketing Program can be done b y the use of media such

as advertisements on tarpaulins and flyers by the use of a
sales person to personall y offer the product to some potential
buyers since the manufacturer is also the distributor.
Target Market
The target market of this study would be men and women

who are ages of 25-65, and with a gross income of least
15,000php/month within Calamba City Laguna.
Product, Packaging and Labeling
Each bottle contains 750mL of Bignay Wine that is to be

consumed depending on their want, as specified and indicated
on
its
label
it
includes
manufacturers name.
Price
the
ingredients
used,
and
the
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COLLEGE DEPARTMENT
28
The Proponent offers the product in prices ranging from

110php-150php.
The
price
might
be
too
high
for
the
consumers, but assurance is offered for the best quality of

wine.
Promotion
The product is to be promoted by a Sales person on a

different establishment within the areas of Calamba City
Laguna and they will make an event program discussing how
our business help and protect ecosystem. During the event our
sales
person
will
organize
some
wine
tasting
booth,
demonstration, free samples and giveawa ys.
I. Channel of Distribution
Distribution channels move products and service from
businesses to consumers and to other businesses. Also known
as marketing channels, channels of distribution consist of a set

COLLEGE DEPARTMENT
of interdependent organizations, such as retailers, and sales
agents, involved in making a product or service available for
use or consumption.
The distribution of Escalofrio: Bigna y wine start with the
manufacturer (G&C Manufacturing), then the product will be
distributed to retailers in some establishment within the target
area of the proponents and will then be consumed b y the end
users after purchasing the product.
Figure 1. Channel of Distribution
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COLLEGE DEPARTMENT
CHAPTER 3
TECHNICAL ASPECT
This study discusses about the process of production and activities

of the store. It states also the machines and equipment used inside the
store and other aspects regarding the bringing of the raw material into the
finished product ready to sell. Building layout, size and production
schedule are all presented for the purpose of identifying the business
operation. Also, product specifications, the list of machines, tools and
equipment are enumerated with their corresponding cost, and the raw
materials are cited.
A. Product
Bignay (Antidesma bunius L.), is an exotic Philippine fruit utilized in
the production of red wine. In the technology, the processing conditions
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COLLEGE DEPARTMENT
(optimum pH, yeast strain, pulp/skin fermentation time, and level of puree
dilution) are standardized. Likewise, quality control system of processing
wine in commercial production was established. The product contains 1213% alcohol (v/v), with excellent flavor and color; and high level of total
phenol and antioxidant activity. These properties contribute to the
beneficial effects of the product to human health when consumed in
moderation.
B Manufacturing process
Manufacturing process shows the step by step process of
production procedure and a collection of method use to define how the
products are to be manufactured. This area of study shows the detailed
description of process through flow chart indicating the requirements which
shows the normal duration of the process.
Preparation of Bignay wine
B.1 Preparation of Ingredients
Prepare all bignay by selecting and washing it well.
B.2 Extracting and Straining of Bignay Fruit

Extract the juice by mashing or crushing. Filter or strain the juice to
remove any solid particles.
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COLLEGE DEPARTMENT
B.3 Boiling
Put the juice into large pot with 2 gallons of water boil for 15 minutes
to get perfect texture juice before adding other ingredients.
B.4 Mixing and Stirring

In this stage all ingredients need to mix to the juice, the first ingredients
that needed to put up are brown sugar, wine yeast and yeast and stir it in 2
minutes until all ingredients cooked and when it already cooked just put
the tannin and citric acid to and wait another 2 minutes until it cooked.
B.5 Sealing and Storing

Seal the fermentation container with a water valve or water bung.
When bubbles form, it means that fermentation is going on. The rate at
which gas bubbles through the bung indicates the rate of fermentation. Do
not allow the temperature to drop below 19oC or exceed 28oC. After four or
more weeks, the absence of gas indicates the end of the fermentation.
B.6 Pouring and Packaging

Pour into properly sterilized bottles. Seal bottles with the company
label. Store wine with in horizontal position. Place the bottles in a cool,
well-ventilated, and dark place.
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Process Flow Chart

This area of study will give the detailed description of
manufacturing process through the flow chart.
PREPARATION and SELECTION OF RAW MATERIALS
EXTRACTING AND STRAINING OF INGREDIENTS
BOILING
MIXING AND STIRRING
FERMENTATION AND SEALING
POURING AND PACKAGING
Figure 2. Chart of making Escalofrio: Bignay wine
C. Plant size and Production Schedule
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COLLEGE DEPARTMENT
The location of the proposed project is at Hectan compound,
Commercial center, Barangay. Halang Calamba City with a total land area
of 80 square meters.
The G&C manufacturing will operate six (6) days in a week making
at 298 days of working days in a year, except Sunday and legal holidays.
The operations will start at 8oclock in the morning until 5oclock in the
afternoon, including the break time. The break will set fifteen (15) minutes
in the morning and in the afternoon and one (1) hour for the lunch break.
Overtime work will only allowed if there is a need for additional supply or
shortage in the production.
D. Production Schedule
The plant will operate six (6) days in a week excluding Sunday. This
is a non-working day that is provided to the employees for family bonding.
The work starts from 8:00 in the morning up to 5:00 the afternoon on
Mondays
Saturdays.
to
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COLLEGE DEPARTMENT
The daily production of Bignay wine is 96 bottles per day (12

bottles per hour). Production is computed by, multiplying the estimated
daily production multiplied to the number of operating days per year. Thus,
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COLLEGE DEPARTMENT
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36
96 which is the number of the products produced per day multiplied to 298
working days. The working days will yield 28,608 the annual production is
arrived at by getting the efficiency rate 75% of the standard annual
production and which is increased by 5% each year.
Formula
Standard Production
Number of Productive days in a Year
298
Multiplied by Estimated number of Wine per day
96

COLLEGE DEPARTMENT
D. Machinery and Equipment

To be able to produce a good quality of product, machinery must be
acquired that can help top producing a bignay wine. Machinery and
equipment required are identified and individually listed according to the
type of use needed in the production of Bignay wine are as follows:
Expensive tools and office equipment are not so required. The firm
could only use tool equipment necessity for the operation of Bignay wine.
There are the list of tools and furniture and fixture and necessity supplies
for the operation of the firm.
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E. Plant Location
The plant will be located at Barangay Halang, Calamba City. The
accumulated prepaid rent per month is P10, 000.00. The proponents
choose the plant location because of the accessibility of raw materials,
utilities, skilled manpower, and accessibility of transportation.
Availability of the Land
The location must be well-ventilated and spacious for future
expansions.
Accessibility
It must be accessible to water, electricity, and transportation
to ensure the conscious operation and convenience of customers.
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COLLEGE DEPARTMENT
F. Plant Lay Out
The plant lay out will see to it that the location and arrangement of
machinery and equipment are well organized for effective space utilization
and smooth workflow. There are enough space will be located for each
station in the production area for the employee to feel comfortable and
became more productive. The working area is located at ground floor and
well organized, the process of production is divided into four sections,
each process has their own space provided. The storage of raw goods and
finish product are also provided by two rooms located at ground floor. The
main office is at second floor. It has two rooms for general manager and
book keeper.
G. Building and Facilities
The proponent decided to rent an available building in Hectan
compound commercial center Calamba City, Laguna. The size of
proponents location is 80 square meters and the rental cost every month is
10,000.For the renovation of building on the said location, the proponents
will prepare a total of Php 55, 410.00 including labor.
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COLLEGE DEPARTMENT
H. Raw Materials and Supplies

The raw materials needed to produce Donya Cristine: Bignay wine listed
below have its corresponding price and quantity that are needed in the
production of Bignay wine. To avoid the shortage of supply and wasting of
supply as well. Fully ripe bignay fruits were obtained from the Institute of
Plant Breeding and Laguna province. The fruits were then manually sorted
to obtain fully ripe, whole fruits devoid of blemishes. These were then
detached from the stem, washed, and drained.
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COLLEGE DEPARTMENT
I.
Utilities
The location is a commercialized area. The proponents consider the
power as indispensable resource of the plant industry. The source of

power supply will be MERALCO. Another essential thing is the water
supply which will come from Calamba Water District. Water is equally
indispensable because this is very important to cleanliness most especially
in the production time. Tele Communication and Internet are also very
important utilities that are needed in the communication and delivery
process which come from PLDT.
H.1 Electricity
The power requirement will be provided by MERALCO whose main
office is in Calamba. It is the only one that can give necessary power for
the business. The G&C Manufacturing plant estimated monthly bill of Php
3,000.00.
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COLLEGE DEPARTMENT
H.2 Water Supply
The adequacy and quality of water supply available to the G&C
Manufacturing is concerned in the production operation of the business.
The main source of water shall be provided by Calamba Water District
(NAWASA). Estimated water bill every month is Php 1,000.00.
H.3 Fuel for Transportation
Another important requirement is for the procurement of raw
materials and delivery of finished product to the retailers. The schedule of
the delivery is once a week. For this operation, fuel is needed. G&C
Manufacturing estimated fuel expense of Php 2,500.00
H.4 Telecommunications and Internet
Another important requirement is for the delivery and order of the
finished product to the wholesalers. For these operations G&C
Manufacturing estimated expense of Php 1, 300.00 for telecommunication.
J. Waste Disposal
The disposal of waste product is one of the major problems of
business industry. The proponents believe that this is more so with the
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COLLEGE DEPARTMENT
proposed business, since most of waste material are biodegradable.
Waste product will be segregated into biodegradable and nonbiodegradable.
K. Production Cost
The proponent will determine if the business is profitable and how
many bottles of the finished product will be produced in a day.
L. Labor Requirements
The workers will be composed of direct and indirect labor. The
needed individual workers for the effective functioning of the firm as
follows:
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COLLEGE DEPARTMENT
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COLLEGE DEPARTMENT
46
CHAPTER 4
FINANCIAL ASPECT
Source of Financing
The proposed project will need an initial capitalization of Php
826,671.40. It will be financed by the equal contribution of the following
partners:
Mr. Christian F. Perez
413, 335.70
Mr. Angelo A. Ganao
413, 335.70
Schedule 1 Project Cost
Schedule 1 Project Cost Assumptions
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COLLEGE DEPARTMENT
The partners will invest cash for initial capitalization.

The working capital is equivalent to 2 months operating expenses.
The contingency fund is equal to 15% of working capital.
Terms for rent is 2 months deposit 1 month advance
Schedule 2 Pre-operating expenses
Schedule 2 Pre-operating expenses Assumptions
Pre-operating expenses are expensed outright in the first year of
operation.
Initial Promotion expenses are for advertisement expenses, costs to
produce 50 products for free samples and freebies for the opening day.
Schedule 3 Raw Materials Used
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COLLEGE DEPARTMENT
Schedule 3 Raw Materials Used Assumption
Raw materials used are computed by multiplying cost per unit to the
annual production. Cost of materials is expected to increase annually by
5%.
Schedule 4 Indirect Materials Used
Schedule 4 Indirect Materials Used Assumption
Indirect materials used are computed by applying the cost per unit to the
annual production. Cost per unit is expected to increase by 5% per
annum.
Schedule 5 Salaries and Wages
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COLLEGE DEPARTMENT
Schedule 5 Salaries and Wages Assumption
Salaries and wages are classified as direct labor, indirect labor, general
and administrative and selling. All these salaries and wages are expected
to increase by 5% each year.
Schedule 6 Employee Benefits
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COLLEGE DEPARTMENT
Schedule 6 Employee benefits Assumptions
Employee benefits are estimated to increase according to the increase of
the salaries and wages.

It includes SSS, Phil Health, PAG-IBIG and 13th month pay.
Schedule 7 Prepaid Rents
Schedule 7 Prepaid Rent Assumption
Prepaid rent is 2 months deposit 1 month advance term.
Schedule 8 Depreciation and Amortization
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COLLEGE DEPARTMENT
Schedule 8 Depreciation and Amortization Assumptions
Composite method was used for depreciating and amortizing fixed assets.
Fixed assets have 5 year life term.
Schedule 9 Selling Price
Schedule 9 Selling Price Assumption
Mark up used to compute the selling price is 50% above cost.
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COLLEGE DEPARTMENT
Schedule 10 Net Sales Revenue
Schedule 10 Net Sales Revenue Assumptions
Sales are computed by multiplying the units sold with the selling price
Cash sales are equivalent to 90% of gross sales and credit sales
represent 10% gross sales.
Schedule 11 Finished Goods
Schedule 11 Finished Goods Assumption
Finished Goods Inventory is estimated to be 10% of the Total Units Available for
Sale
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COLLEGE DEPARTMENT
Schedule 12 Ending Inventories
Schedule 12 Ending Inventories Assumption
Composition of Year end Inventories: Raw materials inventory end is

expected to be, 5% of raw materials available for use; indirect materials
inventory end is expected to be, 5% of indirect materials available for use;
finished goods inventory end is expected to be, 10% of total goods
available for sale.
Schedule 13Trade and Other Receivables
Schedule 13Trade and Other Receivables Assumption
Sales on credit are 10% of total net sales.

Credit terms policy used is 30 days terms (n/30).
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COLLEGE DEPARTMENT
Schedule 14 Cleaning Supplies
Schedule 14 Cleaning Supplies Assumptions
Cleaning supplies will be expense at 95% rate of yearly estimated cost.

Purchases for cleaning supplies will increase by 5% every year.
Schedule 15 Office Supplies
Schedule 15 Office Supplies Assumption
Office supplies will be expense at 95% rate of yearly estimated cost.
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COLLEGE DEPARTMENT
Schedule 16 Regulatory Fees and Business Permit Tax
Schedule 16 Regulatory Fees and Business Permit Tax Assumptions
Municipal tax for the first year is based on municipal tax table for opening
businesses. For the succeeding year, tax is computation is based on the
previous year gross sales. Other fees are paid as part of the regulatory
fees.
Schedule 17 Selling Expenses
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COLLEGE DEPARTMENT
Schedule 17 Selling Expenses Assumptions
Expenses excluding depreciation are projected to increase by 5%
annually.
Communication and fuel expenses accounted for selling expenses is 80%
of the total cost of said expenses.

Repairs and maintenance expenses for the initial year of operation, is
10% of the total cost delivery equipment.
Schedule 18 General and Administrative Expenses
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COLLEGE DEPARTMENT
Schedule 18 General and Administrative Expenses Assumptions
Office supplies and cleaning supplies used are expected to increase by

5% annually
Rent expense for General and Administrative is 30% of P 120,000.00
Utilities expenses allocated for General and Administrative are :
Electricity 30% Water- 20% Communication- 20%
Utilities expenses are expected to increase annually by 5%
Schedule 19 Property Plant & Equipment
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COLLEGE DEPARTMENT
Schedule 19 Property Plant & Equipment Assumptions
Property, Plant and Equipments are carried at cost less accumulated

depreciation.
Schedule 20
SSS, Philhealth, Pag-Ibig Contributions & Withholding Tax Payable
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COLLEGE DEPARTMENT
Schedule 20 Assumptions
Withholding Tax Payable is 15% of salary base.

Increase for government benefits is associated by annual increase in
salary of employees.
Schedule 21 VAT Payable
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COLLEGE DEPARTMENT
Schedule 21 VAT Payable Assumptions
Value Added Tax payable represents VAT due on the last month of each
year. Input tax is 12% of purchases. The selling price is 12% VAT
inclusive.
Schedule 22 Trade and other payables
Schedule 22 Trade and other payables Assumptions
Income tax payable is 30% of annual net income.
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COLLEGE DEPARTMENT
Schedule 23 Partners Equity
Schedule 23 Partners Equity Assumptions
As agreed owners of the business will withdraw 50% of annual net income
which is equally divided to each partners.
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COLLEGE DEPARTMENT
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COLLEGE DEPARTMENT
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COLLEGE DEPARTMENT
Financial Analysis
a. Test of Liquidity ratio
Formula: Current Assets/ Current Liabilities

Significance: Measures the ability of the business to meet its current
maturing obligations.
Formula: Equity/ Total Assets

Significance: measures the proportion of equity used to finance
companys assets.
Good indicator of the level of leverage used by a company.
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COLLEGE DEPARTMENT
b. Test of Profitability ratio
Formula: Net Income/Sales

Significance: Commonly used internally to measure business strategies
in pricing and managing costs.
Formula: Net Income/ Project Cost

Significance: Measures percentage of income derived for every peso of
owners' equity
Formula: Gross Profit/Sales
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COLLEGE DEPARTMENT
Significance: Measures the operational performance of the business
based on profit against direct manufacturing expenses.
Formula: Net Income/ Partners Equity

Significance: It helps users of financial statement gain insight into the
strength of the product in the market.
c. Test of Leverage Ratio
Formula: Total debt/ Total equity

Significance: Indicates what proportion of equity and debt the company is
using to finance its assets.
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COLLEGE DEPARTMENT
Formula: Total debt/ Total asset

Significance: Indicates what proportion of equity and debt the company is
using to finance its assets.
d. Payback period
Significance: Determine the number of years before the proponents can

fully recover their investment.
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COLLEGE DEPARTMENT
CH APTER 5
M AN AGEMENT ASPECT
Management is a process of planning, organizing, leading and
controlling the resources of the organization in order to achieve stated
organization goals and policies of the business for the effective operation.
The management aspect discusses the purpose of the project and the
finding of the study. To achieve this, the management must be able to plan
all activities, for the company to become productive and competitive.
A. Basic Consideration
The success of all business depends on how they organized, directed,
supervise and controlled. The management aspect aims to develop an
effective organization structure that would carry the needs and objective of
the business establishment.
Under the management aspect of the study are the planned pre
operating activities, the determination of the persons who would operate
and supervise the employee of the business, their qualification, duties and
responsibility as well as the benefits and incentives they may receive. The
types of organization and strategies and to be used in the proper utilization
of the resources are also considered.
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COLLEGE DEPARTMENT
B. Form of Organization
The proponents have decided to establish partnership form of business
organization. Partnership contributed money, property or industry to a
common fund with the intention of dividing the profit among themselves. It
is general partnership where all parties are personally liable to the debts or
liabilities of business.
C. Organizational Chart
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69
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COLLEGE DEPARTMENT
70
The organizational chart serves as a guide for the management and

the employee to know their organizational and specific relationship they
have inside the organization, this also helps the management to divide
specific duties arising in the organization.
F
General Manager
Bookkeeper
ig
ur
Driver/
Helper
e
3.
Production Supervisor
G
&
Production Worker
Manufacturings Organizational Chart
D. Key Officers and Personnel

Since the business is newly operated the management only allows
limited number of workers and employee.
General Manager
Job Specification
Male or Female

COLLEGE DEPARTMENT
A graduate of BSBA or any business related course
At least 25 years old
Job Description
Responsible for the overall operation of the business
Responsible for the execution of companies policies
Has good decision making skills and has human relations

character
Book keeper
Job Specification
Female and at least 20 years old
A graduate of BSA or any business related course
Computer literate
With good written and communication skills
Job Description
Analyzes and receive any transaction being accumulated

inside the organization
Receive administrative and clerical task within the office
Responsible for the book keeping and auditing
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COLLEGE DEPARTMENT
Production Supervisor
Job Specification
Graduate of food Tech, HRM or any related course
With or without experience
Between 25 30 years old
Male or Female
Job Description
Know how to assess project and resource equipments
Responsible for quality control
Responsible for productivity and actions of small group

employee.
Production Workers
Job Specification
High school graduate or college level
18 25 years old
Male or Female
Physically and mentally fit
Must be hard working
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72

COLLEGE DEPARTMENT
Job Description
Know how to operate the machine and equipments to be

used.
Responsible for direct production of the product
Helper/Driver
Job specification
High school graduate or college level
License to drive
Experience in Driving
Job Description
Assist inside the production area
Maintain the cleanliness of the working place
Know how to drive properly
E. Project Schedule
This is the allotted time to acquire necessary resources needed to
perform all the activities needed to perform the businesses.
Capital Formation
The proponent generates sufficient funds to buy all the resources
needed to perform the business.
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73

COLLEGE DEPARTMENT
74
Business Location
The plant selection must be accessible to the market and area and
also has enough access to water, electricity and transportation.
Business Registration and Licensing

To be lawful, the business should be registered for the legality of the
firm.
Building Renovation
It is important to renovate building for operation and also to have a
smooth production.
Acquisition of Tools and Equipment
The needed tools and equipment must be acquired for operation of
the business.
Normal Operation
The business will start after the completion of all the requirements
and operating activities.
ACTIVITIES
Capital formation
Business location
JA
N
FE
B
MA
R
AP
R
MA
Y
JUN
PAGE
JU
L
AU
G
SE
P

COLLEGE DEPARTMENT
Business registration and
licensing
Building renovation
Acquiring of tools and
equipment
Hiring and training of
employees
Purchasing of supplies
Normal operation
Figure4. Gantt chart
CHAPTER 6
Socio Economic Aspect
The socio-economic aspect discusses the firms social responsibility
to the community. The proposed business is established not only to earn
profits but also to do well in the community. The proponents are not only
concerned with the internal environment and the profits earned by the
business but also the proponents consider the effect of the business that
will be brought to the society.
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COLLEGE DEPARTMENT
G&C Manufacturing provides economic opportunities such as
providing jobs to the right individuals with skills and abilities that will greatly
contribute to the organization. The organization also provides taxes since
it is a registered and legalized business. Tax is a major source of income
in the government. Through taxes, the governments have provided more
than enough financial support of projects and develop here in the country.
Another thing is that local producers are more engaged to produce their
products because local materials are acquired by G&C Manufacturing and
therefore it helps the Philippine economy. Lastly, the benefit that this
product will bring is the assurance that the consumers of the product have
physical wellness protected.
CHAPTER 7
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMENDATIONS
A. Summary of Finding
The establishment of this small-scale production plant will assist the
countrys economy in the development of in wining industry which is
needed by the business for its operation.
Marketing Aspect
There are available markets for the proposed product which is
known as Escalofrio: Bignay wine and because of the benefits it can
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COLLEGE DEPARTMENT
provide, the business has the opportunity of acquiring a competitive
position in the industry.
Technical Aspect
The project can be produced at the highest possible quality at the
minimum cost in production. In the manufacturing process, skilled workers
are needed and requirements are observed strictly by the workers to
ensure the quality of the product.
Financial Aspect
Business should be financially viable. The business has a total of
Php 826, 671.40 as to be invested by the partners for the operation of the
business and the return on investment will be equally divided between
them.
Management Aspect
The training and work opportunity brought about by the business
for skilled and non-skilled workers are a must. The form of organization will
be partnership. The minimum salary of 8,132.92 a month for the workers
will be given to them. This is in compliance with the requirements
specified.
Socio Economic Aspect
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COLLEGE DEPARTMENT
The establishment of this business will be of great opportunity to
the increasing number of unemployment. This project is socially desirable
and beneficial to the government, to the economy and to society.
B. Conclusion
The proponents conclude that the business proved to be feasible.
Since many people prefer wine. Therefore, the business will also establish
a good and healthy lifestyle as it provides proper nutrition.
C. Recommendation
After the thorough study and evaluation of the gathered data the
proponents have the following recommendations:
1. The partnership should set up more promotional technique like
posters and discounts to the customers to establish and support the
business reputation.
2. The partners should seek for more retail outlets in order to
increase the market and the demand for the product.
3. The excess funds should be deposited in the bank so that the
money should be used in the expansion of the business to generate
additional income.
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COLLEGE DEPARTMENT
4. Future researchers should encourage continuing study of this
particular feasibility project so that they may apply other methods and
improve strategies in analyzing and evaluating the project.
Bibliography
PAGE
79

COLLEGE DEPARTMENT
BIBLIOGRAPHY
Books
Kotler, Philip, (2002) Marketing Management Millennium Edition, Tenth
Edition
De Leon Hector S. (2005) the Law on Partnership and Private Corporation
Laguna News Article 09.Vol.10/Binay fruits
Principles of marketing 14th Edition (2012)
J.Paul Peter, Marketing management (2005)
Internet
http://www.bar.gov.ph/chronicle-home/archives-list/102-july-2010issue/397-bignay-pinoy-posh-red-wine
http://Econport.org.(2008)Factors affecting Demand, from.
http:// www.wikipedia/Wine-10978401/.html
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COLLEGE DEPARTMENT
http://www.foodrecap.net/recipe/make-bignay-wine/
http://ovcre.uplb.edu.ph/index.php?
option=com_joodb&view=article&id=440:bignay-wine&Itemid=154
Other sources
National Statistics Office (Sta.Cruz Laguna)
Business Permit and Licensing Office, City Hall, City of Calamba
Appendices
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COLLEGE DEPARTMENT
82
Appendix A
PFS ADVISERS APPOINTMENT LETTER
May 7, 2014
Mr. Fernando T. Pendon III
Professor
Laguna College of Business and Arts
Dear Mr. Pendon:
The undersigned group is presently enrolled in Project Feasibility
Study which is requires to make a research output as partial fulfilment for
the degree of Bachelor of Science in Business Administration.
In view of this, we would like you to serve as our adviser in our
Feasibility Study this 2nd Semester S.Y. 2013 - 2014.
Please affix your signature under the CONFORME certifying your
acceptance of this appointment as our adviser.
Thank you.
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COLLEGE DEPARTMENT
PAGE
83
Very truly yours,

GANAO, Angelo A.
PEREZ, Christian F.
Appendix B
PFS LANGUAGE EDITOR APPOINTMENT LETTER
April 3, 2014
Mr. Nicasio A. Lacerna

Professor
Dear Sir:
The undersigned group is presently enrolled in Project Feasibility

Study which is requires to make a research output as partial fulfilment for
the degree of Bachelor of Science in Business Administration.
In view of this, we would like you to serve as our language editor in
our Feasibility Study this 2nd Semester S.Y. 2013 - 2014.
Please affix your signature under the CONFORME certifying your
acceptance of this appointment as our adviser.
Thank you!
Very truly yours,
GANAO, Angelo A.

COLLEGE DEPARTMENT
84
PEREZ, Christian F.
Appendix C
SURVEY QUESTIONNAIRE FOR RESPONDENTS
School of Business and Office Administration
P. Burgos St. Calamba City
Dear Respondents,
Good day! We, 3rd year Bachelor of Science in Business
Administration students from Laguna College of Business and Arts, are
presently conducting a Project Feasibility Study entitled Manufacturing of
Bignay Wine. We hope that you will lend some of your time with us. We
will appreciate your cooperation and any information obtained will be
treated with utmost confidentiality.
Thank you and God Bless!
Ganao, Angelo
A.
Perez, Christian
F.
Instruction: Put a check on your desired answer.
1. Do you drink wine?
Yes
No
(if no, move to question 9 and 10)
2. What kind of wine do you drink?

Red wine
White wine
White wine
homemade wine
3. What type of wine do you drink?

Local
Imported
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COLLEGE DEPARTMENT
85
4. How often do you drink wine?

Daily
Weekly
Monthly
Occasionally
Yearly
5. How many bottles of wine do you drink?

1 bottle
2 bottles
3 bottles
4 bottles
5 bottles
6. What attributes of wine do you consider when buying?

Price
Taste
Brand
Ingredients
others, please specify
7. Where do you buy wine?

Liquor and wine stores
Convenient store
Supermarkets
Sari-sari store
8. How many ml. of wine do you buy?

120ml
750ml
200ml
9. Are you familiar with Bignay wine?

Yes
no
10. Are you willing to buy and try Bignay wine?

Yes
PAGE
no
Appendix D
LETTER OF REQUEST FOR INTERVIEW

COLLEGE DEPARTMENT
/ GATHERING DATA
Dear Sir/Madam,
We are the third year students of School of Business (SOB) major
in Marketing Management from Laguna College of Business and Arts,
Calamba City. We are currently conducting our project feasibility study
entitled: G&C Manufacturing of Bignay Wine in Calamba City as partial
requirement of the course. A significant part of this activity is gathering of
data or information to be utilized in the analysis of our project study.
In this regard, we wish to request your kind permission to allow us

to conduct an interview regarding our study relative to your line of
discipline. Any information obtained from your office will be regarded as
highly confidential and will not be, by any means be used for other
purpose as stated above.
Your Kind cooperation regarding this matter will be highly appreciated.

Thank you very much and God bless!
Respectfully yours,
GANAO, Angelo A.
PEREZ, Christian F.
Noted by:
Mr. Fernando T. Pendon III
PFS adviser
Appendix E
SURVEY QUESTONNAIRE COMPETITOR
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COLLEGE DEPARTMENT
87

School of Business and Office Administration
P. Burgos St. Calamba City
Dear Respondents,
Good day! We, 3rd year Bachelor of Science in Business Administration
students from Laguna College of Business and Arts, are presently
conducting a Project Feasibility Study entitled Manufacturing of Bignay
Wine. We hope that you will lend some of your time with us. We will
appreciate your cooperation and any information obtained will be treated
with utmost confidentiality.
Thank you and God Bless!
Ganao, Angelo
A.
Perez, Christian
F.
Instruction: Put a check on your desired answer.
1. What Brand of Wine do you sell?
Novelino
Chamdor
Maria Clara
Others Pls. Specify
Carlo Rossi
2. Which brand is often bought?
Novelino
Chamdor
Maria Clara
Others Pls. Specify
Carlo Rossi
3. What sizes of Wine do you offer?
120ml
200ml
750ml
Others Pls. Specify
4. Which size is the most preferred?
120ml
200ml
750ml
5. Who usually buys this product?
Mothers
Fathers
Teenagers
Maids
6. How many bottles do you sold per day?
50 & below
51-100
PAGE
Others Pls. Specify

COLLEGE DEPARTMENT
100 & above
Others Pls. Specify
7. Number of working days in a week?

5 days
7 days
Others Pls. Specify
8. What is the percentage of Annual Increase in Sales?

Please Specify ____________
Appendix F
ARTICLES OF PARTNERSHIP
Know all men by this present:

That we the undersigned, all of legal age are residents and citizens
of the Republic of the Philippines, have on this day voluntary associated
ourselves together for the purpose of forming a partnership under the term
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88

COLLEGE DEPARTMENT
89
and condition herein set forth and subject of the provision of the existing
laws of Republic of the Philippines.
AND WE HEREBY CERTIFY:
Article I:
That the name of the partnership will be G&C
Manufacturing of Bignay wine.
Article II:
That the Principal office of the partnership shall be
located at Barangay Halang Hectan compound, Commercial Center,
Calamba City Laguna.
Article III:
That the names, citizenship and residences of
the partners of said partnership are as follows:
Name
Citizenship
Christian F. Perez
Filipino
Angelo A. Ganao.
Filipino
PAGE
Residences
Cabuyao, Laguna
Tibag Pabahay Phase 2,
Calamba City, Laguna,
Philippines 4027
Article IV: That no interest that reduces the ownership of the fixed
capital to less the required percentage of the capital shall be allowed on
permitted to be in the proper books.
Article V:
That the term for which the company exists from 5 to 10
years from and after the approval of this partnership by the Securities and
Exchange Commission.

COLLEGE DEPARTMENT
Article VI: That the capital of the partnership shall be 826,671.40,
Philippine currency contributed in cash by the partners as follows:
Name
Amount Contributed
Perez, Christian F.
P413, 335.70
Ganao, Angelo A.
P413, 335.70
Article VII: Shall have the power to uses the partnership name and
otherwise performing such as acts as necessary expedient to promote the
lawful purpose of the firm.
Article VIII: That the profit and losses shall be divided pro rata and
distributed proportionately on the ratio of the capital distribution of each
partner.
Article IX:
IN WITNESS HERE OF, we have unto set our hands this April day
of 2014 at the ___________________, Philippines.
Signed in the presence of:
Christian, Perez F.
Ganao, Angelo A.
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COLLEGE DEPARTMENT
NOTARY PUBLIC
Appendix G
LEASE OF CONTRACT
KNOW ALL MEN BY THESE PRESENTS:
This CONTRACT OF LEASE is made and executed at the City of

Calamba, this day of _______________, 20__, by and between:
(NAME OF LESSOR), of legal age, single/married to (Name of spouse if
any),
Filipino, and with residence and postal address at (Address),
hereinafter referred to as the LESSOR.
-AND-
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COLLEGE DEPARTMENT
(NAME OF LESSEE), Filipino and with residence and postal address at
(Address), hereinafter referred to as the LESSEE.
WITNESSETH; That
WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a
residential property situated at (Address of property to be leased);
WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE
and the LESSEE is willing to lease the same;
NOW THEREFORE, for and in consideration of the foregoing premises,
the LESSOR leases unto the LESSEE and the LESSEE hereby accepts
from the LESSOR the LEASED premises, subject to the following:
TERMS AND CONDITIONS
1. PURPOSES: That premises hereby leased shall be used exclusively

by the LESSEE for residential purposes only and shall not be diverted to
other uses. It is hereby expressly agreed that if at any time the premises
are used for other purposes, the LESSOR shall have the right to rescind
this contract without prejudice to its other rights under the law.
2. TERM: This term of lease is for ONE (1) YEAR from (Date) to (Date)
inclusive. Upon its expiration, this lease may be renewed under such
terms and conditions as my be mutually agreed upon by both parties,
written notice of intention to renew the lease shall be served to the
LESSOR not later than seven (7) days prior to the expiry date of the period
herein agreed upon.
3. RENTAL RATE: The monthly rental rate for the leased premises shall
be in PESOS: AMOUNT IN WORDS (P 00,000.00), Philippine Currency.
All rental payments shall be payable to the LESSOR.
4. DEPOSIT:
That the LESSEE shall deposit to the LESSOR upon
signing of this contract and prior to move-in an amount equivalent to the
rent for THREE (3) MONTHS or the sum of PESOS: AMOUNT IN
WORDS (P 00,000.00), Philippine Currency. Wherein the two (2) months
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COLLEGE DEPARTMENT
deposit shall be applied as rent for the 11th and 12th months and the
remaining one (1) month deposit shall answer partially for damages and
any other obligations, for utilities such as Water, Electricity, CATV,
Telephone, Association Dues or resulting from violation(s) of any of the
provision of this contract.
5. DEFAULT PAYMENT: In case of default by the LESSEE in the payment
of the rent, such as when the checks are dishonored, the LESSOR at its
option may terminate this contract and eject the LESSEE. The LESSOR
has the right to padlock the premises when the LESSEE is in default of
payment for One (1) month and may forfeit whatever rental deposit or
advances have been given by the LESSEE.
6. SUB-LEASE: The LESSEE shall not directly or indirectly sublet, allow
or permit the leased premises to be occupied in whole or in part by any
person, form or corporation, neither shall the LESSEE assign its rights
hereunder to any other person or entity and no right of interest thereto or
therein shall be conferred on or vested in anyone by the LESSEE without
the LESSOR'S written approval.
7. PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric,
cable TV, water, Internet, association dues and other public services and
utilities during the duration of the lease.
8. FORCE MAJEURE: If whole or any part of the leased premises shall
be destroyed or damaged by fire, flood, lightning, typhoon, earthquake,
storm, riot or any other unforeseen disabling cause of acts of God, as to
render the leased premises during the term substantially unfit for use and
occupation of the LESSEE, then this lease contract may be terminated
without compensation by the LESSOR or by the LESSEE by notice in
writing to the other.
9. LESSOR'S RIGHT OF ENTRY: The LESSOR or its authorized agent
shall after giving due notice to the LESSEE shall have the right to enter the
premises in the presence of the LESSEE or its representative at any
reasonable hour to examine the same or make repairs therein or for the
operation and maintenance of the building or to exhibit the leased
PAGE
93

COLLEGE DEPARTMENT
premises to prospective LESSEE, or for any other lawful purposes which it
may deem necessary.
10. EXPIRATION OF LEASE: At the expiration of the term of this lease
or cancellation thereof, as herein provided, the LESSEE will promptly
deliver to the LESSOR the leased premises with all corresponding keys
and in as good and tenable condition as the same is now, ordinary wear
and tear expected devoid of all occupants, movable furniture, articles and
effects of any kind. Non-compliance with the terms of this clause by the
LESSEE will give the LESSOR the right, at the latter's option, to refuse to
accept the delivery of the premises and compel the LESSEE to pay rent
there from at the same rate plus Twenty Five (25) % thereof as penalty
until the LESSEE shall have complied with the terms hereof. The same
penalty shall be imposed in case the LESSEE fails to leave the premises
after the expiration of this Contract of Lease or termination for any reason
whatsoever.
11. JUDICIAL RELIEF:
Should any one of the parties herein be
compelled to seek judicial relief against the other, the losing party shall pay
an amount of One Hundred (100) % of the amount clamed in the complaint
as attorney's fees which shall in no case be less than P50, 000.00 pesos
in addition to other cost and damages which they said party may be
entitled to under the law.
12. This CONTRACT OF LEASE shall be valid and binding between the
parties, their successors-in-interest and assigns.
IN WITNESS WHEREOF, parties herein affixed their signatures on the
date and place above written.
(Name of Less or)

LESSOR
(Name of Lessee)
LESSEE
PAGE
94

COLLEGE DEPARTMENT
_____________________________
_____________________________
ACKNOWLEDGEMENT
Republic of the Philippines (_________________________) S.S
BEFORE ME, personally appeared:
Name
CTC Number
Date/Place Issued
(Name of Lessor)
(Name of Lessee)
Known to me and to me known to be the same persons who executed the
foregoing instrument and acknowledged to me that the same is their free
and voluntary act and deed.
This instrument consisting of ____ page/s, including the page on which
this acknowledgement is written, has been signed on each and every page
thereof by the concerned parties and their witnesses, and sealed with my
notarial seal.
WITNESS MY HAND AND SEAL, on the date and place first above
written.
Notary Public
Doc. No.______;
Page No. ______;
Book No.______;
Series of 20___.
PAGE
95

COLLEGE DEPARTMENT
Exhibits
PAGE
96

COLLEGE DEPARTMENT
Exhibits 1
Plant Location
Vicinity Map
Plant layout
Building perspectives
Company Logo
PAGE
97

COLLEGE DEPARTMENT
Exhibit 1.1. Plant Location
PAGE
98

COLLEGE DEPARTMENT
Exhibit 1.2. Vicinity map
PAGE
99

COLLEGE DEPARTMENT
Exhibit 1.3. Plant Layout
PAGE
100

COLLEGE DEPARTMENT
Exhibit 1.5 Brand Label

Front label (Top): Back label (Bottom)
PAGE
101

COLLEGE DEPARTMENT
Exhibit 1.4. Company Logo
PAGE
102

COLLEGE DEPARTMENT
Exhibit 2
Machinery, Equipments
& Raw materials
PAGE
103

COLLEGE DEPARTMENT
Exhibit 2.1 Alcohol meter
Exhibit 2.2 Gas stove
Exhibit 2.3 Labelling Machine
PAGE
104

COLLEGE DEPARTMENT
Exhibit 2.5 Gas tank
Exhibit 2.6 Paddle
Exhibit 2.7 Wine mixing machine
PAGE
105

COLLEGE DEPARTMENT
Exhibit 2.8 Wooden barrel
Exhibit 2.9 Measuring Cups
Exhibit 2.10 Apron
PAGE
106

COLLEGE DEPARTMENT
Exhibit 2.10 Pot holder
Exhibit 2.11 Hairnet
Exhibit 2.12
PAGE
107

COLLEGE DEPARTMENT
Exhibit 2.14 Delivery Van (L300)
Exhibit 2.15 Bignay Fruits
PAGE
108

COLLEGE DEPARTMENT
Exhibit 2.16 Citric Acid
Exhibit 2.17 Wine yeast
Exhibit 2.18 Brown sugar
PAGE
109

COLLEGE DEPARTMENT
Exhibit 2.19 Tannin
Exhibit 2.20 Purified Water
Exhibit 3
PAGE
110

COLLEGE DEPARTMENT
Promotional tools
PAGE
111

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LAGUNA COLLEGE OF BUSINESS AND ARTS

Wine is an alcoholic beverage made from fermented grapes and

LAGUNA COLLEGE OF BUSINESS AND ARTS

Europe and the Mediterranean were first established during antiquity as

LAGUNA COLLEGE OF BUSINESS AND ARTS

LAGUNA COLLEGE OF BUSINESS AND ARTS

LAGUNA COLLEGE OF BUSINESS AND ARTS

LAGUNA COLLEGE OF BUSINESS AND ARTS

A market is one of many varieties of systems,

procedures, social relations and infrastructures whereby parties engaged

LAGUNA COLLEGE OF BUSINESS AND ARTS

Demand is an important role in analyzing the market stability. It is

(e) = Margin of Error (10%)

LAGUNA COLLEGE OF BUSINESS AND ARTS

Methods of Projection (Demand)

LAGUNA COLLEGE OF BUSINESS AND ARTS

I. Arithmetic Straight Line

Yc = Initial Value (1st year)

II. Arithmetic Geometric Curve

LAGUNA COLLEGE OF BUSINESS AND ARTS

Yi + 1 = Value for the year ahead

III. Statistical Straight Line

LAGUNA COLLEGE OF BUSINESS AND ARTS

5(8,072,909) (15) (2,642,145)

IV. Statistical Parabolic

LAGUNA COLLEGE OF BUSINESS AND ARTS

LAGUNA COLLEGE OF BUSINESS AND ARTS

The proponents have used Statistical Parabolic to project the

LAGUNA COLLEGE OF BUSINESS AND ARTS

Source: Actual interview

mathematical method computation under each method it will

Arithmetic Straight Line

Where: Yc = Initial Value (1st year)

Yn = Final Value (last year)

LAGUNA COLLEGE OF BUSINESS AND ARTS

Arithmetic Geometric Curve

Where: Yi + 1 = Value for the year ahead

LAGUNA COLLEGE OF BUSINESS AND ARTS

Statistical Straight Line

LAGUNA COLLEGE OF BUSINESS AND ARTS

a = (34) (962,041) (10) (1,924,317)

LAGUNA COLLEGE OF BUSINESS AND ARTS

c = (5) (1,924,317) (10) (962,041)

because it has the lowest standard deviation which is 7.

LAGUNA COLLEGE OF BUSINESS AND ARTS

D. Demand and Supply Analysis

Formula for Demand and Supply Analysis

LAGUNA COLLEGE OF BUSINESS AND ARTS

or market segment that is being serviced by a company. Increasing market

Formula for Market Share:

LAGUNA COLLEGE OF BUSINESS AND ARTS

Source: Actual Survey

Price of the Product

There is an inverse (negative) relationship between the

consumers are willing and able to bu y is often referred to as

The Consumer's Income

LAGUNA COLLEGE OF BUSINESS AND ARTS

The effect that income has on the amount of a product

relationship between a consumer's income and the amount of

The Price of Related Goods

As with income, the effect that this has on the amount

The Consumer's Expectations

expectations for the future can also affect how much of a