CHAPTER 1 Commented [ab1]: Draft not yet the final paper,

continuously to be edited. Add the needed information

within this week.
THE PROBLEM AND ITS SETTING

Introduction

Liquor, an alcoholic beverage is widely consumed by most of people to celebrate

an event, compliment a nice meal, stress reliever and even to foster camaraderie and to

socialize. In the Philippines, “inuman” as what the Filipinos would call it. Drinking is part

of Filipino Culture, they would always find a reason to gather around in a small table,

buy liquor and chat the night away. Currently, the liquor consumption in the Philippines

is said to be 19.9 liters of alcohol per capita (15+) consumption, this was just for a pure

alcohol this data is according to the World Health Organization (2018).

Filipino has a unique type of natural liquor like the following:

Lambanog, this is made from coconuts and is famously made in the Quezon Province.

Others call it as “Poor man’s drink” because of its inexpensive production process, there

are some companies who market it with different flavors like cherry, apple, and mint to

cater to more people.

Tuba, just like the Lambanog, is also made from coconut sap. It has a bittersweet and

stinging flavor. Some people would think that only the toughest of men could drink it,

hence it is said to be a “hard drink”.

Basi, is a type of wine made in Ilocos Norte. It is made by fermenting sugar cane juice

and storing the product in an earthen jar. This wine takes 3 months to ferment and a

year to age, producing a light brown drink with sweet and sour flavor.
Also, Filipinos drink every kind of alcoholic drinks like, beer, spirits, cider, Perry and Rice

wine, etc.

Beer, is one of the oldest and most widely consumed alcoholic drinks in the world. Beer

is brewed from cereal grains also, wheat, maize (corn), and rice are used. During the

brewing process, fermentation of the starch sugars in the wort produces ethanol and

carbonation in the resulting beer.

Spirits or distilled drink, is an alcoholic drink produced by distillation of grains, fruit,

or vegetables that have already gone through alcoholic fermentation. The distillation

process purifies the liquid and removes diluting components like water, for the purpose

of increasing its proportion of alcohol content. As liquors contain significantly more

alcohol, they considered “harder”.

Cider, is an alcoholic beverage made from the fermented juice of apples. Cider is

widely available and UK has the world’s highest per capita consumption, as well as its

largest cider producing companies. Cider is also popular in many Commonwealth

countries, such as India, Canada, Australia, and New Zealand. Also in European

countries.

Perry, is also an alcoholic beverage made from fermented pears, similar to the way

cider is made from apples. It has been common for centuries in England.

Rice wine, is an alcoholic beverage fermented and distilled from rice, traditionally

consumed in East Asia, Southeast Asia and South Asia. Rice wine is made from the

fermentation of rice starch that has been converted to sugars. Rice wine typically has
an alcohol content of 18-25%. Rice wines are used in Asian gastronomy at formal

dinners and banquets and in cooking. They are also used in a religious and ceremonial

context.

Usually, when you buy a bottle of liquor in the sari-sari store you will be familiar

with its glass- typically cylindrical without handles and with a narrow neck that can be

plugged or capped. A standard alcohol drink that is sell in sari-sari store contains of 330

ml, 500 ml, 1 liter or 1.5 liter in one bottle of liquor. Emperador, Redhorse, Gin, SanMig

Light, The Bar, Tanduay, Tanduay Ice, GSM Blue and Pale Pilsen are the most popular

alcoholic drinks that are available in sari-sari stores. Typically, the used bottled are

returned in the sari-sari stores, and sometimes it was being recycled and sold in the

junkshops which are somewhat being collected by the liquor companies.

Ever since, alcohol consumption is deeply rooted in the Philippine culture that is

why it is widely distributed and available in every sari-sari store all around the nation.

However, due to its availability, lenient monitoring and implementation to limit its usage

had been uplifted specially to the minors who consumes alcohol. With that, our law sets

the minimum legal drinking age at 18, however, even with the existence of the said

law, underage drinking is still widespread and prevalent. A good number of young

people get alcohol from home. If not from their home, they get hold of alcohol from

friends or they can discreetly buy for themselves as it is relatively easy for an underage

teen in our country to obtain alcohol from stores. As a result, a number of cases of

violence; sexual, drug abuse and suicide among Filipino teenagers have been attributed
to drunkenness or alcohol intoxication. For this reason, this is already growing concern

in our society especially on youth behaviors, as well as to the culture of our country.

Business Background

(Brand name) is a partnership and manufacturing company located at #14 Violet Commented [ab2]: To follow

Street Odelco Subdivision San Bartolome Novaliches Quezon City with a total area of

184 Square meter with a warehouse and an office space. (Brand Name) is a powdered Commented [ab3]: To follow

liquor packed in a black biodegradable sachet containing 25 grams of powdered liquor

good for 1-liter consumption. In the packaging, brand name, logo, and warning sign is

visible in front and the product, ingredients and instructions on how to consume the

product is located at the back.

Powdered liquor will be distributed in a business to business (B2B) transaction- in

a retail stores, Sari-Sari stores, and mini groceries stores. The product will be made

available around Villongco Street Commonwealth Quezon City.

 Image c/o Dempsey Commented [ab4]: To be submitted and updated by

dempsey
Proposed Name of the Business/ Product Commented [ab5]: To be discuss pa by the group

Needs Giving Rise to the Project

 The product packed in sachet was conceived by the researcher because of the Commented [ab6]: Change the name

difficulty in carrying a bottled drink alcohol. The idea of the powder alcohol is to lessen

the accident cause of bottled liquor. According to the Global News (2019), the bottle of

a liquor was usually used as deadly weapon, like the Molotov cocktail also known as

gasoline bomb- an improvised incendiary weapon made in beer bottle, rugs and gasoline.

And according to World Health Organization (WHO) 2018 there are far too many people

who suffered the consequences of the harmful use of bottle through violence and injuries.

Aside from that, there is also a bad impact of using bottled liquor such as water pollution,

air pollution and currently the growing shortage of sand this was according to AGC Glass

Europe 2019.

Statement of the Problem

This feasibility study is intended to evaluate the viability of powdered liquor in the Commented [ab7]: Change the name pa

Philippines specifically along Villongco Street, Commonwealth, Quezon City.

The paper also aims to evaluate and analyze the following areas:

a. Organization Aspect of the study

 Management during pre-operating period

 Management during the operating period

b. Marketing Aspect of the study

 Demand and supply analysis

 Marketing program

 Projected sales quantity

 Competitors background
 c. Technical Aspect of the study

 Product

 Manufacturing process

 Plant size and production schedule

 Machinery

 Plant location

 Plant layout

 Structures

 Raw materials

 Regulatory requirements

d. Financial Aspect of the study

 Monthly profit and loss projection until cash flow breakeven

 Annual profit and loss projection for 3 years

 Balance sheet

 Valuation calculation

 Payroll/benefits

Conceptual Framework

The Technical Study of this project includes Product, Manufacturing process, Plant

size and production schedule, Machinery, Plant location, Plant layout, Structures, Raw

materials, and Regulatory requirements. It deliberates on how powdered liquor will be

manufacture and deliver to the store, and what materials/ equipment are needed, and

where will the researchers put the said project.

The Marketing Study covers the Demand and supply analysis, Marketing

program, Projected sales quantity and Competitors background. And it will discuss

about the designed questionnaire drifted to the respondents and the result determines

the supply and demand and for the researchers to know whether their product will

penetrate the target market.

The Financial Study shows the Monthly profit and loss projection until cash flow

breakeven, Annual profit and loss projection for 3 years, Balance sheet, Valuation

calculation and Payroll/benefits. It will discuss if the product will be profitable to the

market and this will be the guide for the researchers to identify the financial

transactions between the manufacturer and the retailer.

The Management study of this project will show the Management during pre-

operating period and Management during the operating period of the company that the

researchers had to formulate.

 Conceptual Framework

Organization Aspect Marketing Aspect of Technical Aspect of Financial Aspect of

of the study the study the study the study

Management during Demand and supply Product Monthly profit and loss
pre-operating period analysis projection until cash
flow breakeven

Management during Marketing program Manufacturing process Annual profit and loss
the operating period projection for 3 years

Projected sales Plant size and Balance sheet

quantity production schedule

Machinery Valuation calculation

Competitors
background

Plant location Payroll/benefits

Plant layout

Structures

Raw materials

Regulatory
Requirement
Scope and Limitations

Study of () business is restricted in Villongco, Commonwealth, Quezon City and

will be based on management, financial, technical, socio-economic and financial aspect

of business. The respondents of this study will consist of 300 users and retailers of

alcohol who are on the legal age. The product will be distributed and made available in

sari-sari stores through delivery and orders from the customer/s and retailers along

Commonwealth, Quezon City.

 Chapter 2 Commented [ab8]: Not yet done, just a draft.

Organizational Aspect

This includes the objectives of the study, the form of the business ownership,

capitalization, organizational structure, management policy and legal requirements.

Objective of the Study

The objectives of the study are as follows:

1. To form a general partnership to create a business

2. To identify the job description and job specification of each work.

3. To provide a convenient and accessibility of services to the customer

4. To earn profit

5. To expand and improve services for the betterment of the customers and the

location

Form of Ownership

The proponents agree to engage in a partner contract that is embodied in the

Article of Co-Partnership. As defined in Article 1767 of the Civil Code of the Philippines,

it is a contract whereby two or more persons bind themselves to contribute money,

property or industry into a common fund with the intention of dividing profits.
 The organization business will be form of general partnership which will be

composed of partners Six (6) partners who will be investing agreed amount of

contribution as capital to start the business operations. Each partner will be contributing

money, property and/or service to finance the expenses of the firm. The contributions

used for the operation of the business are deriving out of saving, properties and loan.

All profits and losses will then be divided accordingly among the partners.

Each partner is considered as a confidential agent of the partnership. This means

that every act of each partner binds the business organization. That is why, trust and

firm communication between the partners are essential. Therefore, it is every partner’s

obligation to act for a common benefit as far as the business is concerned.

The business is owned by: Aldrin C. Barbosa, Virgie L. Brisenio, Catherine D.

Leono. Amiel Sebastian Mola, Ronald B. Onquit Jr. and Mikaela S. Pardalis.

Capitalization

The initial of P 2,400,000was provided by the owners through Savings Account

and agreed to have a partnership style of business for an equal share of P 400,000.
 “Petmalu Sari-Sari Store 24/7 Delivery

Proponents Capital Shares

Barbosa, Aldrin P 400,000

Briseneo, Virgie P 400,000

Leono, Catherine P 400.000

Mola, Amiel Sebastian P 400,000

Onquit, Ronald Jr. P 400,000

Pardalis, Mikaela P 400,000

Total P 2,400,000

Store Attendant
Store Attendant Day Shift
Night Shift
Amiel Sebastian Mola
Virgie Brisenio
Mikaela Pardalis
Catherine Leono
 Deliveryman Deliveryman
(Day Shift) (Night Shift)
Ronald Onquit Jr. Aldrin Barbosa
Job Analysis
 Receiving and Monitoring

Orders Staff

Job Description Job Specification

 Shall receive all customer’s orders  At least High School Graduate

through Facebook page, landline and  Computer Literate

mobile.  Good Communication Skills

 Shall get all the information of the  Able to read and write

customer, such as name, address  Organize

and contact details.  Knowledgeable in Basic Mathematics

 Shall check all customer’s ordered Computations

item/s if it available in the store

through excel and inform the

customer right away

 Shall pack the ordered items of the

customer
 Shall ensure the items are matched

based in the ordered items of the

customer.

 Shall record and check all products

that are still available in the store.

 Shall check the condition of the

products

 Shall pack the ordered items of the

customer

 Shall ensure the items are matched

based in the ordered items of the

customer.

 Shall record and check all products

that are still available in the store.

 Shall check the condition of the

products

Deliveryman

Job Description Job Specification

 Shall deliver all ordered  At Least High School

items to the customer. Graduate

 Shall get the payment

from the customer and  Able to drive motorcycle

forward to the cashier

 Shall have Driving License

 Shall inform the Receiving

and Monitoring Orders

Staff that the products are

already delivered
 Shall perform other duties

delegated by the owners

Legalities

Business/Mayor’s Permit - Securing a Mayor’s Permit (also known as a Business Permit)

is one of the requirements for every business or company to operate in the Philippines.

Local Government Units (LGUs) can be cities or municipalities. Each municipality has

different procedures depending on the ordinance of the city or municipality. A Business

Permit is referred to as a Mayor’s Permit, because it is processed at the City Hall – the

office of the mayor.

Barangay Clearance - Before you can get a Postal ID or a Mayor’s Permit, you have to

get a Barangay Clearance first. This is one of the documents that is in demand in

transacting with government offices. Moreover, this is commonly requested for ID

application, employment requirements, Affidavits, and other legal transactions. This

document certifies that the person is a good resident in a barangay and has a good moral

character. It also signifies that the applicant does not have any negative record. No

wonder, this is necessary in any official transaction.

Securities and Exchange Commission: If your enterprise is a partnership or a corporation

this is where you will register. It will issue a certificate of registration.

Compensation and Benefits

All staffs of the business shall have compensation based from Section 45 of

Article VI of the By-laws. Compensation shall be in 15 or 30 days basis as stated in the

Labor Code.

The following positions shall have the following compensation:

SSS - The SSS Employees’ Compensation (EC) program has been in place to

help workers who encounter work-related illnesses or injury resulting in disability or

death. This includes compensation for: medical services, appliances, and supplies in an

accredited hospital; rehabilitation services, including medical, surgical, and hospital

treatment; and income cash benefit.

PhilHealth - Provides financial assistance for inpatient and outpatient hospitalization,

as well as Z Benefit Packages for patients undergoing prolonged hospitalization and

expensive treatments and suffering from Millennium Development Goal (MDG)-related

illnesses.

HDMF (PAG-IBIG) - This entitles employees to avail of a housing loan, Calamity Loan,

and Multi-Purpose Loans that aim to provide financial assistance to their needs.