NATIONAL UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

-------------------------------------------------------------------Sprint and Stride

-------------------------------------------------------------------A Feasibility Study Presented to the
Faculty of College of Business and Accountancy
National University
Sampaloc, Manila
-------------------------------------------------------------------In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Business Administration
Major in Financial Management
---------------------------------------------------------------------Fairy May Dalhag
Christine Moralita
Jzash Eale Canja
Carlos Verdillo

December, 2016
Professor Cathy Enteria

I. Summary of the Project

Sprint and Stride
BRIEF DESCRIPTION OF THE BUSINESS
Sprint and Stride is an enthusiastic and innovative enterprise that showcases their products as an
art for living with custom unique design for their clients. Sprint and Stride look forward for the next
generation of sneakers and slippers. The business is aiming to prove itself that it can compete to the
national market, they wanted to provide products to customers throughout Marikina with quality shoes
and slippers at cheap prices even in tough economic times. With a highly committed management team,
S&S will continuously remain in the competition. Today they are looking to share their products and
aspirations not just in Marikina as well as the rest of our country.
Sprint and Stride endeavor is to provide high quality products at a reasonable cost for athletes,
students, adventurers, shoe sellers, teenagers and even the elderlies. The foundation and concepts was
planned by the founder Fairy May Dalhag and her partner Christine Moralita. S&S is targeting to
develop its business from a simple local business for the next six months to a national business in the
following months. Through proper strategizing, brainstorming and planning of a quality and unique
products, S&S finalized its operation to the city of Marikina as the main office and factory production.
They will provide consumers and business owners all over Manila including Divisoria Mall, Cartimar
Shopping Center and Quiapo. An entrance for success will be possible through market development of
quality S&S shoes and slippers with a 6 months limited warranty. The success of the product will rely
on utilizing their highly experienced staff, and effective marketing approach.
Sprint and Stride is a partnership selling footwear made by the local community of Marikina.
The business has two other investors respectively Jzash Canja and Carlos Verdillo. Sprint and Stride

will be first introduced to different footwear shops in Marikina such as Tobys Garage, C Point Shoe
Store, Marikina Shoe Exchange, and All Flip Flops.
Through continuous progression and lots of stages of product innovation, S&S will ensure that
their products will meet the current standards and keen to continuous improvement which will ensure
the satisfaction of their beloved customers.
TYPE OF BUSINESS AND LOCATION/PLANT SITE
Sprint and Stride is a manufacturing business which will produce footwear made of denim. It is
generally processed by the community of San Antonio, Marikina, these clothing and rubbers passes
through different phases including trimming pieces of various shapes that will take the form of uppers
using metal knife, sewing together by highly skilled worker and molding the shape of the foot up to
finishing the masterpiece till the best products produced.
Sprint and Stride aims to help the livelihood of their employees, they wanted to go beyond the
concern for the society. There is a desire to improve their production while simultaneously uplifting the
city of Marikina.
Sprint and Stride office will be located at Brgy. 407 F. Jhocson St. Sampaloc, Manila. The
manufacturing and main office will be located in 25 Guerilla, San Antonio Marikina.
MISSION AND VISION
Mission
Sprint and Stride is committed to provide superior but affordable S&S footwear to its patrons aimed to
uplift the quality of life in the country.

Vision
We are moving towards our goal to establish Sprint and Stride as one of the most admired footwear
manufacturer in the country by offering our clients a unique and high-quality S&S shoes and slippers
made of denim.

II. Introduction/ Background of the Study

BRIEF BACKGROUND OF THE STUDY
The market trend for fashionable shoes is toward a wider selection of common design and
elements. Over the last few years, there has been an alteration of several designs and variations from a
base design. A base design is released and then there are many different spurs that have common
elements but include a few distinctive characteristics and designs. Strip-and-Stride wants to stray away
from these base designs, Sprint and Stride wanted a passionate and inventive product that will
showcase products as an art and masterpiece for their clients. Sprint and Stride look forward for the
next generation of sneakers and slippers. This is great for the customer because it allows them to be
fashionable but distinctive in-trend yet unique with their chosen shoes or slippers.
Strip-and-Stride is planning to begin its operation in year 2017. A commitment from its team is
an instrument to reach profitability and ensure future success. Strip-and-Stride will offer an
unprecedented selection of current men and women fashions.
Strip-and-Stride has captured good information regarding their market and knows as great deal
about the common attributes and behaviors of the most prized customers. Strip-and-Stride will use this
information to better understand who should be served, when to serve, including the acceptable price
rates, the customer specific needs, and how Strip-and-Stride can better communicate with the
customers.
OBJECTIVES OF THE STUDY
Our study is aiming to position the brand as a unique but high-quality product at an affordable
price, producing footwear that will conserve space in their bags or luggage to successfully place the
business into the footwear industry. They wanted to attract new customers and get their loyalty to
enhance customer relationship.

SCOPE AND LIMITATIONS OF THE STUDY

This study is being conducted to know if the product will be patronized by the Filipino
customers and if there is a possibly that this product can be exported to other countries. Sprint and
Stride is looking forward for the next generation of sneakers and slippers. The study scopes to the
extent of satisfaction and dissatisfaction among the users so that the company can take the desired step
to minimize the dissatisfaction level. Study of various factors which plays a major role in purchasing
decision will provide the opportunity for the company to get the information about the most common
factors which influences the purchase decision. The study helps to determine the average annual
expenditure of the customers and the price that is affordable for them to purchase footwear.

III. Management Aspect

LEGAL REQUIREMENTS
In order to begin the production of Sprint and Stride, it is required to provide business permits
that will regulate safety, structure and appearance of the business community, it will serve as proof that
S&S follows certain laws and ordinances, Barangay Clearance from where the place where the
operation and office is located, DTI registration and SEC registration, lease contract or title covering
the property where the business is located, locational or zoning clearance, building permit and
occupancy permit, public liability insurance, fire safety certificate and other requirements specific to
the type of business to be carried out.
TYPES OF BUSINESS
Sprint and Stride is a manufacturer of shoes and slippers located at Marikina, S&S produce and
supply products to different footwear shops in Marikina. These products are made and processed by the
community of San Antonio, Marikina, it is widely recognized that Marikina is the shoe capital of the
Philippines and S&S is aiming to be one of the best designer and producer of shoes not only in
Marikina but also within the Philippines and will continue its aspirations to go beyond unimaginable;
within the world.
FORM OF BUSINESS OWNERSHIP
Sprint and Stride falls under the classification of partnership. It is owned by four partners,
respectively the founder, president and the other investors. These partners contribute property, money
and skills combining it to a common fund with a purpose of earning profit and dividing these earning to
the partners. They share costs and have their own responsibilities for the operation of the business.
They are all responsible to the businesss profits as well as losses that will be divided between the four
partners depending on their portion and contribution. Each partner pays tax on their share of the profits.

CAPITALIZATION
Sprint and Stride will have a beginning capital of P1,000,000.00, 70% of the capital came from
investment of the 2 partners; P200,000.00 from the founder, P200,000.00 from the president and the
P300,000.00 are contributed by the two other partners divided equally. The other 30% of the capital
will come from a bank loan amounting to P300,000.00. The division of the capital will be 20% for
expenses and the remaining 80% will be allotted for assets.
The chart below shows the graphical representation of the division of capital:

START-UP(ALL IN PESO)
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
INVESTMENT

LOAN

EXPENSES

ASSTETS

ORGANIZATIONAL STRUCTURE

HIRING PROCESS
Hiring of employees depends on what type of job they belong. Sprint and Stride is
implementing recruitment strategy for the seamstress and shoes makers. There are certain standards and
procedures that are needed to pass in order to get the job for a manager. The company has reading and
reviewing of resumes, wherein the candidates that will be chosen will be invited for assessment or
exam, once they passed the exam, they will be entitled for an interview by one of the partners followed
by the president interview, the applicants must pass the interviews in order to get the job. Selection
decision in choosing employees of S&S depends on the job description that they have for the
requirements. Trainings and orientations by the partners are provided on the worker that is chosen,
they will be oriented about the job that will be assigned to him or her. Training focuses on enhancing
worker capabilities and giving them something that will be useful for their career development.
It is important for the business to have efficient and effective workers. The S&S criteria for hiring a

seamstress, shoe makers and line leaders must be at least high school level and are good in doing his
job, most specially he or she must know how to deal with other employees. In terms of the manager, he
or she should have finished a four years business course. The business requires the person assigned to
these job to be at best in supervising his and her employees. They should be honest, patient, and
flexible and has a good decision making skills.
JOB DESCRIPTION
The business will assign different duties to each employees, the manager will coordinate all the
internal sources of information to retain the organizations best customers and attract new ones. He or
she will model information and analyze the volumes of transactions generated by customer purchases
and pass this information to the partners to identify, prioritize, and reach out business opportunities.
Followed by developing contacts of the partners to each of the employees in order to participate in the
structuring projects to assures the completion of the quota or numbers of products that are needed to be
processed. He or she is also responsible for supervising implementation, advocate for the customers
needs, and communicate with clients as well as documenting all customer contact and information that
will be presented in meetings that will be used to increase sales and growth of company.
The line leaders will serve as messenger of information regarding the production of seamstress
that will be passed to the manager, he or she is also assign to oversee if the seamstress and shoe makers
are doing their job correctly without disregarding the business rules and regulations; coming to work on
time, sleeping on the production, eating, chitchatting and other unacceptable behaviors. Lastly, the
seamstress and shoemakers are the ones who creates the products for the customers, they need to
ensure that each products are made with quality and on time that the business requires.
SALARIES AND BENEFITS
Aside from their basic pay for manager, S&S also provide government mandated benefits like
SSS, PhilHealth, Pag-Ibig and 13 th Month Pay, health insurance and medical reimbursement for their

managers. Sprint and Stride is offering Health benefits with no dependents. S&S also provide sick
leaves and emergency leaves that are mandated to the constitution of having fifteen sick leaves and
fifteen vacation leaves. Leaves and Christmas bonus are provided for their line leaders, shoe makers
and seamstress.
Sprint and Stride basic pay for manager is amounting to P620.00 per day equivalent to
P15,500.00 per month and an amount of 400 a day for the line leaders equivalent to P10,000.00 a
month. For shoe makers and sewers, their salaries will depend on the number of shoes and slippers that
they produced; one shoe or slipper to be sewed is equivalent to P30.00, and an assembled shoe is
amounting to P100.00 each.
ORGANIZATION POLICIES
Sprint and stride will implement policies for their employees, first is for the attendance, it plays an
important role in the business because if the employee has no absences it means that the employee can
do his or her job on that certain day. The employees are only allowed to be absent twice a month but
they are given certain number of days on leave. Failure to follow the rules regarding the attendance
may result in some unwanted circumstances. Another policy is referring to proper workplace etiquette;
the employee is required to observe proper etiquette while inside their workplace. The employees are
not allowed to smoke inside the workplace because this might result to fire; using of phones while
doing their work is not allowed; the employees are not allowed to eat on the working hours because
there are allotted time for their lunch break; proper uniform should be observed in the workplace.
Lastly is the substance abuse, the employees are not allowed to use drugs, tobacco and other alcoholic
products while inside the companys property.

IV. Operation Aspect

PRODUCT SERVICE CONCEPT
Footwear has different purpose in every person, aside from its primary concern of protecting
our feet, it also serves as a representation of someones personality, fashion and taste. Sprint and Stride
develops a breed of footwear that is compressed of a shoe along with a slipper which will allow the
consumer to save space, time, effort and money. This product is a combination of a shoe and a slipper
bind together by a zipper that is well suited to a small space in your baggage or bag pack saving more
space for the important stuffs that are needed to be loaded by the user allowing them to conserve time
in preparing their things and avoiding the possibility of disremembering to carry a shoe or slipper, it
will be efficient for the user to manage their things effortlessly. It is also affordable to buy for the
reason that a consumer does not have to purchase two different products separately, they can also
choose variety of designs of shoes at cheaper prices.
PLANT LOCATION AND LAYOUT, GEOGRAPHICAL LOCATION OF COMPETING
COMPANIES
Sprint and Strides production will be located at 25 Guerilla, San Antonio Marikina situated on
the island of Luzon in the Philippines, it is one of the cities that make up Metro Manila, the National
Capital Region. Marikina was the capital of the Province of Manila from 1898 to 1899. Located along
the eastern border of Metro Manila, it is bordered on the west by Quezon City, to the south by Pasig
and Cainta, to the north by San Mateo and to the east by Antipolo, the capital of Rizal province.
According to the 2015 census, it has a population of 450,741.
Sprint and Strides competitors are located nearby because Marikina is the shoe capital of the
Philippines and footwear enterprise is the main source of living in that community.

SUPPLIERS/RAW MATERIALS
Materials that are going to be used in sewing; shoe thread, laces, zipper and denim clothing will
be purchased at Divisoria particularly at Pan Atlantic International Ent., Inc located in Ilaya Street
Manila, Metro Manila they are a manufacturer of felt cloth, zipper, velcro strap, strap with designs, and
other materials needed to make shoes and bags while eyelets, rubber and breathable deodorant hi-poly
foam will be purchased at Bagong Kaisahan Marketing located at 730 Juan Luna Street, Binondo
Manila, Metro Manila which is also in Divisoria.
1. Shoe thread

2. Eyelets

3. Lace

4. Denim

5. zipper

6. Breathable deodorant hipoly foam for insole

7. Rubber for shoe welt

8. Rubber for Outsole

PLANT MACHINERY AND EQUIPMENT

1. Manual Sewing
Machine

2. Haft and Handle

3. Clicker and scrap

hatchet

4. Hammer

5. Scissor

6. Nipper

7. Last pincer

8. Scalpel

9. Shoemaking Stand

MANUFACTURING/PRODUCTION PROCESS
The production process of creating a finished Sprint and Stride Footwear has three different
phases, first phase is the production of the shoe, it will start with cutting out the fabrics by each sizes
that will be used using a scalpel. While cutting a pattern, leaving at least an inch of extra material along
the bottom edge of the shoe where the different pieces of the upper parts join together. This will serve
as a seam allowance. The other parts of the shoe that need to have patterns made include; the sole (the
core of the bottom of the shoe); the insole (the internal part of the shoe that sits directly under the foot);
the outsole (the outer layer that directly touches the ground) and the heel. After cutting the fabric is
molding the last, it is a foot shaped piece of material over which the shoes are molded. A different last
is used for each shoe size. The last is so important because it determines the fit and feel of the shoes.
Next us inserting the eyelets or holes that will fix the laces through. Evenly space the eyelets apart from
one another (just less than an inch) making 4 holes each side. After that is stitching the different parts
of the shoe and trimming the excess parts.
The second phase of production involves the making of the slippers. First step is to prepare the
sole, the core pieces of the sole of the shoe are then covered on either side by the insole (the piece that
sits against your foot) and the outer sole (the piece that sits against the ground). After preparing the sole
stitching will begin, strips of cloth are stitched directly to the sole to make it into a slipper. A zipper will
be inserted at lining or shoe welt of the slipper and sewn fabric made at first phase. The zipper will
serve as a connector between the slipper and the shoe.
For the last phase of production, checking of errors of defects will be conducted. That will be
the time that the line leader will observe if the seamstress and shoemakers has meet their quota. After
the checking of the finished products, employees will begin rapping the product with a shoe wrapping
paper and placing it to box for packaging.

PACKAGING
Strip and Stride footwear will be packed in a thin, light weighted carton assembled without
using glue to become a shoe box to eliminate toxic materials and reduce waste, 5x12 inches in size that
will fit any size of footwear, it will not contain lots of designs in its cover, a logo at the top of the box
and information about the size, name of Sprint and Stride and production location will also be printed
at the lower side of the box. A wrapped paper will be inserted inside the hole of the shoe.

OFFICE SUPPLIES AND EQUIPMENT

OFFICE SUPPLIES

1. Stapler

2. Rubber Stamp

3. Pen, Pencil, Sharpener

4. Highlighter

5. Bond Paper

6. Memo Pad

7. White Board

8. Puncher

9. Card/Envelope Rack

10. Thumbtacks and

Paperclip

11. Printer Ink

12. Correction Fluid

13. White Board Marker

and Eraser

OFFICE EQUIPMENT

1. Computer

2. Fax machine with

scanner and printer

3. Desktop Table and

Chair

4. Electric Stand Fan

5. Clock

6. Lights

7. Filing Cabinet

8. Trash Can

9. Water Dispenser

10. Shelf

11. Delivery Truck/cab

12. CCTV

13. Extension cord

14. Flash Drive

15. Emergency Light

16. First Aid Kit

17. Fire Extinguisher

UTILITIES
1. Electricity

2. Internet

3. Water

4. Gas

5. Rent

V. Marketing Aspect
MARKET OVERVIEW (COMPETITOR ANALYSIS AND CONSUMER BEHAVIOR)
Fashion and trends are the greatest force driving the footwear industry in most places, people at
the young age are the ones who has been influenced by these trends and these young consumers in the
Philippines are becoming financially independent because most of them are beginning their career at
the teen age years. Countless teenagers are joining the BPO industry and business industry which gives
them more buying power. Fashion and trends caught their attention, that is the main reason why the
demand for footwear thereby continuously increases as well as the market growth.
Across the globe; Nike, Adidas, Vf corp., Asics and New Balance are the leading players in the
footwear market while top players in the Philippines can be found in Laguna, Rizal, Antipolo, Bulacan,
Cebu, Cavite, Bataan, Mactan, Subic and Marikina. Sprint and Stride will be situated in San Antonio,
Marikina where lots of competitors are awaiting. Competitors in Marikina are usually home-operated
enterprises. Although there is a huge competition, the competitive advantage of an entity is their quality
and affordability which Sprint and Stride can provide.
The footwear industrys highest production month is during the month of November, December
and May because the Christmas season and opening of classes is approaching while the lowest is
during the month of July, caused by clearance and inventory made by enterprises.
PORTER FRAMEWORK
Porters Framework consists of five forces that tries to analyze the level of competition in an
industry to develop business strategy. The first force is the threat of new entrants, footwear industry in
the Philippines is continuously rising thats why the threats for new competitors are inevitable and
Sprint and Stride must provide continuous innovation to keep pace and remain in the completion. Next
force is threat of substitutes, Sprint and stride is an affordable product which is their advantage to other
competitors, it is a two in one product that attracts customers and prevent them in switching to
alternatives. Third is the bargaining power of customers. The customers have the ability to force a firm

to change prices, Sprint and Stride is developing a brand of footwear which will satisfy the buyer and
make them realize that their wealth are worthy of Sprint and Strides product that result to customers
loyalty. Another force is the bargaining power of suppliers, if Sprint and Stride is ordering their supply
from a particular entity, it can put power against Sprint and Stride when there are only few substitutes,
there is a need for a contract between the supplier and the firm. Lastly is the industry rivalry, the
competition between the existing entity with the same industry as footwear, Sprint and Stride will target
continuous innovation and powerful competitive strategy to develop its name in the industry.
SWOT ANALYSIS (Proposed business, 2 Direct and 1 Indirect Competitors)