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Chapter I INTRODUCTION
This chapter serves as an overview on the background of the study and the nature of the business, outlined objectives, statement of the problems, definition of the scope and limitations, and the formulation of hypothetical questions to be answered by the researchers will be discussed in this chapter as initialization for this study.
Rationale of the Study
The proponents would like to study the viability of putting up a 4,000 sq. m Pet Cemetery named “Pets & Pals Memorial Park” that would cater different services for the benefit of the pet owners and the pet itself.
The proposed venture came about as a result of the personal experiences of the proponents themselves, having no proper burial site for their pet’s remains. Aside from sentimental reasons, sanitary considerations is another reason why the proponents think that a proper burial for pets is needed. If the pet owners do not have backyards or open spaces where they can bury their animals, they can consider pet cemeteries or rather have the animals cremated.
The researchers have come up into the idea of creating a pet cemetery for it will be a unique business to be funded in Visayas. The researchers think that having a new and unique idea of cemetery will bring a lot of customers, specifically those class A
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customers. The said cemetery will offer an experience which many pet-lovers will like; they will not feel the loss of their pet because the cemetery will look like a theme park, in this case, people will not feel sad of the loss of their pet. The abovementioned ideas of the business are also its competitive advantage.
Business Profile
The business will be named “Pets & Pals Memorial Park.” The business will be established in order to serve as a place where deceased pets will be buried properly. A number of ideas come up in people’s mind on how to bury pet’s remains. One of these is to put the body in a plastic bag and just throw it in the river or somewhere else but the most common practices is to bury it at home; many people choose to bury their pets at home as a way of keeping it close to them and it is much cheaper.
The researcher then came up to the idea of creating a pet cemetery. This will be the first in the Philippines, however some countries have their own pet cemetery like America and Europe. The business will be practicing proper, clean and safe burial for the pet. Pet owners do not need to worry where to place their deceased pet because with the help of our memorial park, their pet’s remains will be in good hands. In addition, the pet memorial park will not only be a plain cemetery for it will have food stalls and mini-park where families can get together and enjoy the moment and ambiance of the place.
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Statement of the Problem
This study is undertaken to determine the viability of setting up a Pet Memorial Park in Bacolod City. To aid the feasibility of the proposed project, the study intends to answer the following questions:
a.
How can the study be significant for the industry?
b.
What management structure, functions and policies are most applicable to the proposed business?
c.
What marketing processes shall be validly determined and defined to ensure marketability of the proposed business?
d.
What technical facilities, operational flows, lay-outs and requirements are most appropriate to the proposed business?
e.
What financial indicators shall be met to ensure sustainability and profitability of the proposed business?
f.
What is the significant social impact of the proposed business?
Scope and Limitations
The study will cover the analysis and strategies that will be applied in the marketing, operational, financial, and socio-economic aspects of the chosen business. This paper will also require information from segments of pet owners, most especially pet lovers.
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Due to the time constraints, the study was only limited to gather information concerning the market analysis for the business from 100 respondents belonging to the target market. The concept for expansion and additional assets like pet grooming, are yet beyond the scope of the study.
Significance of the Study
This study is significant to the following sectors:
Investors. This paper will give the investors the idea on how they run the business and to know if the business will be a successful one. Government. Should this project be pushed through, the government would benefit from the taxes paid out of the business’ income. Academe. The academe will benefit from this study in terms of promoting the quality of education, such as the practice of producing promising feasibility study which enables the student learn more new ideas in their respective field of expertise. Proponents. This study would enable the proponents to practice what they have learned from their Feasibility subject, and at the same time, serve as a huge learning experience for all of them. The proponents will also be able to connect their studies with reality and catch a glimpse of the possible work they might have to do in the future. Pet Lovers. This will give the pet lovers a peace of mind for a reason that their pets are in a proper resting place and are in good hands.
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Future researchers. Among the future researchers, this study will serve as their cross reference that will give them a background or an overview.
Definition of Terms
The following terms are the ones that are used in the paper which are defined clearly:
Pet Memorial Park. A cemetery for pets, that is also for the owners to have a place where they can reminisce the times that they’ve had with their animal. Memorial park. May be either a public park dedicated in memorial to an event, or a cemetery. Cemetery. A place where the remains of the deceased are buried. Pal/s. A person or an animal that you are spending time with, giving you company when you are alone. Pet. A tamed animal, kept for companionship and treated with care and affection. Cremation. The combustion, vaporization and oxidation of dead bodies to basic chemical compounds, such as gases, ashes and mineral fragments retaining the appearance of dry bone. Burial. A ritual act of placing a dead person or animal, sometimes with objects, into the ground.
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Chapter II MANAGEMENT ASPECT
This chapter aims to answer the need for efficient organizational structure, effective hiring and screening procedures, better understanding of the roles of each individual key player that would either make or break the business, among other purpose. The mission and vision as well are presented alongside the specific objectives of the study.
Vision To provide the highest level of compassion and understanding to the pet owner. We will treat each pet as if it were our own with emphasis on dignity and professionalism and to be remarkably first in the city catering this type of business by giving satisfaction, quality, and price- friendly services.
Mission To provide an affordable, well maintained final place of rest for pets, regardless of burial choice, where family, friends and the community can be at peace with their loved ones and their thoughts. Furthermore, Pets & Pals promise to deliver satisfactory
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services amongst customers through continually improving in all business aspects such as regularly seeking ways on how to maintain order and cleanliness in the area, and by being up to date with the trends as to provide exciting offers all year round.
Company Goals and Objectives I. Provide a dignified, environmental sensitive cremation and burial site for Pets. a) Ensure that the location is fit for cremation and burial accommodations and activities. b.) Ensure preservation of grave; maintenance should be a priority. II. Make a name for itself a.) A clean reputation should be maintained. b.) It will not only set as a trend but a lifetime business that will continue to innovate and prosper.
Form of Ownership
As for the form of business organization, the business will be implementing the general partnership form of ownership. The business, in its entirety, is owned by the partners who took part in the conceptualization, inception, and incorporation of the partnership and who are still continually involved in the day-to-day operations of the entity. The partners are namely Mary Argee Dyle Amurao, Bill Christian Braza, Jan Andre Jalando-on, Ivy Jocsing and Mikaela Solatorio, who unified and bound
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themselves to pool money, property or industry to a common fund, with the intention of dividing the profits and losses among themselves, and be of service to their fellowmen.
Organizational Structure
Figure 1: Pets & Pals Memorial Park Organizational Structure
General Partners
General Manager
Bookkeeper
Cashier
Mortician
Assistant Manager
Janitor
Security Guard
Grave Digger
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Job Description and Specifications
This section presents the agreed and appropriate manpower specifications that are required for a particular position in the business, which are corresponded with a brief explanation of the duties and responsibilities, as well as whom to render accountability, of that certain position.
1. General Manager Reports to: General Partners General Function: One of the partners would serve as a Managing Partner or the General Manager of the business, and will be in authority for the administrative and operating functions of the organization. The General Manager ensures that the business operates efficiently, effectively, and profitably while maintaining reputation.
Job specifications:
Graduate of Business Administration
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Has a minimum of 3 years work related experience
Took up courses in a business administration program including management, organizational behaviour and human resource management
Computer literate
Has good interpersonal skills
Communicate fluently and effectively in the dialects used; Hiligaynon, Tagalog and English
25 years old and above
Male or female
Job description:
Ensures that the Memorial Park as well as the Office operates efficiently and profitably while maintaining its reputation
Monitor and improve overall business performance and standards
Supervise the employees, their performances, job satisfaction, productivity and welfare
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Handling complaints from both staff and customers
Responsible for combining of strategic planning and day-to-day management responsibilities and activities
Have creative aspects in marketing and business development
2. Assistant Manager Reports to: General Manager General Function: The Assistant Manager will be in authority for assisting the General Manager in the administrative and operating functions of the organization. The Assistant Manager together with the General Manager must ensure that the business operates efficiently, effectively, and profitably while maintaining reputation.
Job specifications:
Graduate of Business Administration
Has a minimum of 3 years work related experience
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Took up courses in a business administration program including management, organizational behaviour and human resource management
Computer literate
Has good interpersonal skills
Communicate fluently and effectively in the dialects used; Hiligaynon, Tagalog and English
25 years old and above
Male or female
Job description:
Assist the General Manager in ensuring that the Memorial Park as well as the Office operates efficiently and profitably while maintaining its reputation
Monitor and improve overall business performance and standards
Supervise the employees, their performances, job satisfaction, productivity and welfare when the General Manager is not around
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Handling complaints from both staff and customers
Have creative aspects in marketing and business development
2. Bookkeeper (outsource) Reports to: General Partners General Function: The bookkeeper is accountable for the record keeping function of the business. Job specifications:
Should have an associate degree in Accounting or Business Administration, or equivalent business experience, as well as knowledge in bookkeeping and generally accepted accounting principles
Has a minimum of 3 years work related experience
Computer literate
Communicate fluently and effectively in the dialects used; Hiligaynon, Tagalog and English
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25 years old and above
Male or female
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Job description:
Reconciles accounts to ensure accuracy
Creates the tangible reports of financial transactions of the business per quarter which includes posting information from documents like invoice to customers, cash receipt and supplier invoices to accounting journals or accounting software.
3. Cashier Reports to: Bookkeeper Job specifications:
Must have degree in any course
Has at least 2 year work related experience
Knowledge to handle money
Must be trustworthy
Must have good moral character
Male or female
Job description:
Greets customer
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Collects payments by accepting cash, check, or charge payments from customers
Meet with the bookkeeper to record business transactions
Develops honesty and integrity inside the working place
4. Mortician Reports to: Assistant Manager Job specifications:
No formal education required
Must be physically strong
Willing to work in any weather conditions
Job description:
Digs grave
Prepares the plots for funeral and burial services
Prepares for and conducts casketed and cremated interments
5. Embalmer Reports to: Assistant Manager Job specifications:
Involved in classes with embalming
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Must complete an apprenticeship
Must have an acceptance of death
Job description:
Preserves and prepares bodies from the time of death until they can be buried
Wash and disinfect bodies to prevent deterioration and infection
Remove fluids and gases from the body and replace them with injected preservatives
Make sure the mortuary is fully stocked
Order essential items, such as chemicals
6. Janitor Reports to: Assistant Manager Job specifications:
No formal education required
Willing to work in any weather conditions
Willing to work any time of the day
Job description:
Beautify lawns, trees and the aesthetics of cemeteries
Cleaning and maintenance of place
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Maintains and utilizes cemetery tools, equipment, and vehicle
7. Security Guard Reports to: Assistant Manager Job specifications:
High school diploma
Has at least 2 year work related experience
Ability to maintain healthy working relationships with customers and other employees
Must be physically fit
Job description:
Greets customers and anyone entering the area
Secures premises and personnel
Prevents losses and damage in any properties
Completes reports by recording observations
Compensation
Pets & Pals employees will avail the following benefits: SSS, PhilHealth and Pag-ibig with the required percentage based on salary range. Benefits also comprise of 13-month pay, vacation leave, sick leave, overtime pays and attendance bonus.
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Management policies
Pet & Pals starts the business operation at 9am to 7pm. Employees, who are assigned with different tasks and responsibilities, are required to observe the following policies regarding the attendance, leaves and overtimes, proper dress codes, duties and responsibilities and appropriate work behaviors.
Attendance policies
1. Employees are expected to report to work as scheduled on time. 2. Failure to report on time issues a salary deduction as per the minutes/hours of being late. 3. Only three (3) tardiness are allowed within one month. In excess of this, an employee is subject to penalties. 4. Every employee shall ask written form from the Manager before issuing a leave for absence. 5. Every employee shall ask a waiver from the Manager before issuing a leave.
Unscheduled Absences – Employees must file a waiver for absence for at least a week before to manager. If the employee incurred sickness and cannot report for work, he must call the Operations Manager immediately. If notifications were received on the day of his/her absence, this will be considered as AWOL. Upon return to work, he/she must file an absence slip with medical certificate attached for signature and approval of the Operations Manager.
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6. Incurrence of 4-day AWOL of an employee automatically subjects to termination.
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Leaves and Overtimes Working leaves of all forms are subjected for approval before issuance; failure to adhere with this automatically considers one as absent. Hence, some leaves that ere with pay are issued invalid.
1. Bereavement leave grants a 3-day excuse from reporting to work with pay 2. Maternity leave grant a 3-month excuse from reporting to work 3. Paternity leave grants a 1-week excuse from reporting to work 4. Sick and vacation leave grants a maximum of 1-week excuse from reporting to work. o Emergency leave- If employees must go on emergency leave, he/she must file an absence slip immediately. Attached to the absence slip must be documents justifying his/her reason for going an emergency leave. 5. Overtimes will be paid at the rate of time and one half the hourly rates for all hours worked 6. Every employee should file their overtime slips to the manager within the payperiod to be compensated. No overtime slip, no overtime pay. 7. In terms of holiday, employees who provided their effort to report to work shall receive double pay.
Voluntary resignation 1. An employee who intends to resign must give a one-month prior notice to the owner.
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2. Must comply with all the clearance requirements, otherwise, he/she will forfeit the remaining compensation due to him if there is any. Compensation schedules 1. The 13th month pay which shall be equivalent to of an employee’s basic monthly salary shall be given not later than December 24 of each year 2. Salaries are to be distributed with no delays as possible
Duties of pet cemetery owners and operators All pet cemetery owners and operators shall have the following duties: 1. To keep permanently maps and records containing the specific site of each pet grave, the grave owner’s last known address, the date of burial, the size of such grave, the contract for sale of such grave and pet disposal forms provided however that the provisions of this subdivision shall apply only to individual burials. 2. To keep complete records of the names of trustees of any trust accounts and complete records of all trust fund money. 3. To clearly inform customers of the option of paying maintenance fees for care of pet graves, including costs and benefits for permanent care for pet graves and annual care for pet graves. 4. To provide notice to customers about hours that the cemetery will open to customers to view pet graves.
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Dress code, hygiene and sanitation 1. Employees are expected to be proper and modest. 2. Employees must be well-groomed, wearing clean and assigned attire. 3. Shall have proper haircut, trimmed fingernails, clean, and regularly washed hands. 4. Work areas should be designed to be safe to use and easy to clean and decontaminate, and should be cleaned at the end of every working day. 5. Employees are allowed to wear appropriate make ups, particularly among the Managers, Bookkeeper, and Cashier.
Appropriate work behaviors and discipline 1. Employees are expected to make themselves readily available when requested by customers. 2. Each employee needs to know what is expected of them. It is then their responsibility to make sure they follow through. 3. Employees and leaders need to be able to count on each other. 4. Employees need to understand that they need to make the right choices. They need to own up to mistakes for the greater good. Admitting to mistakes will allow time to make corrections. 5. Always act professional no matter what your job title is. 6. Employees must treat other employees and members of the public in a respectful, professional, fair, equitable and courteous manner.
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Personnel Plan Employees General Manager Assistant Manager
Salary/Day -
Salary/Month 14,000.00
Allowance (10% of net income)
Salary/Year
Bookkeeper
-
6,500 per quarter
28,000.00
Cashier Mortician Embalmer Janitor Security Guard
256.50 350 per session 1,200 per burial 256.50 -
7,695.00 7,200.00 7,695.00 8,250.00
90,544.50 84,128.00 86,400.00 90,544.50 99,000.00
168,000.00
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Chapter III MARKETING ASPECT
In this chapter, the proponents will be presenting the factors which are considered as part of establishing the business in its marketing viewpoint. This section includes the statements of who are the target markets of the chosen business, the methodology and the instrumentation used by the proponents in gathering data and information from the market in order to obtain a demand and supply analyses. In addition, this chapter also presents the competitor’s profile and the internal and external factors the business must consider. The illustration and discussion of the business’ product positioning and marketing strategies that will cohere to its mission and vision are also included in this chapter.
Target Market
In today's current environment, pets occupy a prominent place in a family, or as the central focus of attention in a single household. The business’ target markets are middle to upper-middle class families, couples, individuals, pet lovers and pet owners of deceased pets who want their pets memorialized by placing nameplates on memorials at our cemetery facility. The researchers chose these groups because they are most likely to have pets who would be considered a member of the family. In addition, these target markets have enough financial support to make them spend more money on taking good care of their
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pets. Pets & Pals Memorial Park fills a need for capturing a moment in time, or preserving a special relationship with their beloved pets.
Methodology
The study will use descriptive design in asking and surveying the respondents towards having a Pet Memorial Park in Bacolod City. The survey questions will come from the researchers which is self-made and to be distributed to 100 respondents. It will be distributed to respondents who are pet owners and pet lovers, randomly in any areas around Bacolod and other neighboring municipalities and cities. The data that will be gathered will include the information that are relevant to the study such as the importance of their pet, willingness to pay burial of pet, willingness to visit their pet once in a while, and interest in putting the pet’s remain in a pet cemetery. All gathered data will be presented in pie charts and bar graphs to clearly show the results of the survey. After gathering, result will be summarized and to be analyzed by the researchers as a bases in making their marketing strategies and as a reference for instituting the demand and supply analysis of the projected business.
Instrumentation In terms of gathering data, the proponents will use questionnaires that contain questions that are relevant to the study. Self-made questionnaires will be distributed in order to know and understand the preferences and perceptions of the respondents. The questionnaire is about knowing if they have experienced owning a pet for the past
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year/s and how they treat them. The respondents will also be asked if they have already seen a pet cemetery. In the questionnaire, the respondents will be questioned if they’re willing to try a new, affordable, and safe Pet Cemetery to be established in Bacolod City. Also, it is about knowing the things or activities that pet owners usually do to its pet’s remains. The interest of the respondents in having a burial for their pet and asking for suggestions for the Pet Cemetery are also included in the survey questionnaire.
Demand Analysis
Figure 1: Respondent’s Gender
Male 26% Female 74%
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Out of 100 respondents who answered the survey questionnaires regarding the proposed business, 74% are female and only 26% are male.
Figure 2: Percentage of Respondents Having Pet/s at Home for the Past Year/s 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Yes
No
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Figure 2 shows the number of respondents who have pet/s at homes for almost a year. The partition of the chart reveals that 87% of the respondents are having pet/s at home; on the other hand, 13% answered that they don’t have any pets at home that stayed with them for almost a year. Therefore, it can be concluded that a lot of pets nowadays are being adopted by different groups of people (students, families, couples, etc.) who are also called as pet-owners or pet-lovers.
Figure 3: Percentage of Respondents who Treat Their Pet/s Like a Family Member 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Yes
No Column1
Figure 3 shows the percentage of respondents who treat their pet/s at home as a family member. The result reveals that 86% of the respondents give importance to their pet/s because they treat them as one of their family members; on the other hand, 14% do not treat their pet/s as one or maybe a part of the 14% of respondents do not have any pet/s at home that’s why they do not consider it as a family member. Therefore, the proponents concluded that pets are treated as a family member by most of the people
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because they bring many benefits to some pet owners. Even though having a pet involves additional cleaning, spending, doctor appointments and time, pet owners think that there are many rewards they can get which can be taken from the whole experience just by owning a pet.
Figure 4: Activities Done by the Pet Owners to their Pet's Remains 80% 70% 60% 50% 40% 30% 20% 10% 0%
Series 1
The figure above shows the activities or ways on how the pet owners do to their pet’s remains. As shown above, most of the respondents bury their dead pets at the backyard (76%) while least opt for other activities like burying it to any vacant lot, disposing and selling it to others (4%). 20% of the respondents usually throw their pet’s remains at the river or dumpsites while only 5% slaughtered it for food. Based on the derived percentages, it can be concluded that most of the respondents prefer to bury their dead pets at their backyard at homes because it has already been a part of Filipino’s tradition. Therefore, the business should focus on encouraging the pet owners
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that a proper and safe burial for their pets is a must-try because based on a research, burying pet’s remains somewhere else are considered to be hazardous wastes in which most of them are not aware of.
Figure 5: Percentage of Respondents Who Have Seen a Pet Cemetery
Yes 6%
No 94%
The figure above shows the number of respondents who have already seen a pet cemetery. The result shows that 94% of the respondents have not yet seen a pet cemetery while 6% already did. It conveys that pet cemetery is not common to everybody because most of the people are already used of the thought that only humans are the one being buried in a cemetery. Some of the respondents are not aware that there are some pet cemeteries being established in other countries which bury pet’s remains that is why the proponents concluded that establishing this kind of business in Bacolod City will be more likely in demand because this will be the first Pet Memorial Park in the city that will cater services for pet and pet owners.
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Figure 6: No. of Respondents who are in Favor of Having a New, Affordable, and Safe Pet Cemetery
Yes 85% No 15%
Figure 6 represents the percentage of the respondents who are in favor in the idea of establishing a new, affordable, and safe pet cemetery in the city of Bacolod. The partition of the pie chart reveals that 85% of the respondents prefer to have a pet cemetery in the city while only 15% are not in favor of. Therefore, it can be concluded that there is a demand for a safe and secured resting place for pets that is why the business should pursue marketing strategies in informing the market that there will be a new and first ever pet cemetery in the city that will offer special services for pets and for pet owners at the same time.
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Figure 7: No. of Respondents Who are Interested of Putting Their Dead Pet at a Pet Cemetery 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Yes
No
The figure above shows the percentage of respondents who are interested in putting their dead pet/s at a pet cemetery. The result conveys that majority of the respondents (83%) are willing to put their pet’s remains in a pet cemetery while only 17% of the respondents say no. Based on the outcome of the survey, the proponents concluded that there is a high demand for this kind of business because it is new in the market. It could also be concluded that this kind of business will be popular in its industry if it captures the target market who are highly interested in the offerings being offered by the business.
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Figure 8: Suggested Amenities At the Pet Cemetery by the Respondents 100 90 80 70 Stalls/Canteen Playground Park Chapel Pet Clinic Cremation Tomb Others Food 60 50 40 30 20 10 0
The last figure above shows the percentage derived from the suggestions of the respondents regarding the amenities they want to be featured in the Pet Memorial Park. Out of 100%, Food Stalls or Canteen got the highest percentage which is 32%, next to this is the Playground and Park with 13%, followed by Tomb with 9%, and both Chapel and Cremation got 8%. The least opt goes to Pet Clinic with only 7%. There are other amenities that have been recommended by the respondents which only got a total of 5% which includes Pet Wall, Café, Pool, Pet Museum, Pet Show, Garden, Treehouse, etc. Hence, due to this demand, the proponents concluded that the business should be effectively establish these amenities in which most of the target market are looking for.
Supply Analysis Pet cemetery is a kind of business that is very rare in the Philippines because most Filipinos are used in the tradition of putting their pet’s remains somewhere else
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like rivers, backyards or even in the dump sites. For this reason, the proponents were not able to identify the possible business’ competitors because Pets & Pals Memorial Park will be the first pet cemetery in Bacolod City catering special services for pets and for pet owners as well. Since Pets & Pals doesn’t have any competitors locally, the business will be focusing on its own internal and external factors in order to succeed and be known in the industry it belongs.
Figure 9: Pets & Pals Memorial Park Strengths, Weaknesses, Opportunities and Threats
Strengths 1 No competitors 2 Unique facilities 3 Good place to spend some quality time and reminisce the times with the deceased pet. 4 Affordable and well maintained place for deceased pets. 5 Trendsetter pet cemetery 6 Offers different amenities Opportunities 1 Gaining customer loyalty 2 Increased number of customers who are interested in providing a burial for the deceased pet/s 3 Will be known nationwide
Weaknesses 1 Unable to determine the death of the pets 2 Prices for the services are not yet fully established
Threats 1 New competitors 2 Difficulty in reaching the quota since the business is new and having the possibility that it will not click. 3 There might be competitors that will copy the business and force the business to shut down.
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Strengths -No competitors
Weaknesses -Unable to determine the death of a pet
-Unique facilities -Good place to spend some quality time and reminisce the times with the deceased pet
-Prices for the services are not yet fully established
-Well maintained place for deceased pets -A trendsetter pet cemetery Opportunities -Gaining customer loyalty -Increased number of customers who are interested in providing a burial for the deceased pet/s -Will be known nationwide
-Since there are no competitors, the customer’s loyalty will be much assured -It is one of the fist and few pet cemetery so it has big chance of being known nationwide
-Though we do not have the assurance of when the exact date and time the pets will die, whenever one dies, an interested customer will be a prospect -In time, the services will be fully established
Threats -New competitors -Difficulty in reaching the quota since the business is new and having the possibility that will not click -There might be competitors that will copy the business and force the business to shut down
-Since there are no competitors yet, the new ones that might be put up the same business will have a hard time catching up with what we have already established -Even if competitors will follow what we have, people will still recognize which one started the trend
-By the time new competitors come, we have overcome our weaknesses already
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Figure 10: Pets & Pals Memorial Park TOWS Matrix
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Product/Service Positioning Figure 1 High Price
High Variety
Low Variety
Low Price
Pets & Pals Memorial Park is positioned in the High Variety and High Price for a reason that this business will be offering a lot of services and will be giving high quality products that could surely satisfy the needs and wants of our target customers.
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Marketing Strategies
Business Logo
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Service/Product
A lot of pet owners nowadays are looking for a business that could bury their pet’s remains properly. The needs of these customers will be met because the offerings that the business offers will give a fast and reliable service. The business will be offering a variety of stuffs but concentrating in the preserving and proper burial of pets. Also, to get more attention of the market, the business will be introducing a mini-park in which people who are interested to do some activities inside are welcome to enter. The service should also be satisfying and remarkable. It must be convenient for the visitors and grave owners to visit their dead pets and deal with the management. Since it is a new business in the city, the services and products shouldn't be disappointing but rather standard-qualified enough to be marketed in the society.
Price
The business will provide price range that will be affordable for the target market. Since the business is unique and no competitions at all, price will be offered as cheap
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as possible but as the same way, business will still gain profit. The researchers have agreed that the prices will be offered based on the quality and type of the caskets, pet urns, memorial markers and service that the customer wants. The business should also consider the survey results since many of the respondents answered that they think it is costly to put their pet in a pet cemetery.
Place
The researchers agreed that the ideal place for the business is at Brgy. Granada, Bacolod City, containing an area of 4,000 square meters, more or less. It is registered in accordance with the Provisions of the Property Registration Decree in the name of Atty. Leon G. Moya, Jr. The researchers chose this location because it is near a subdivision and people are most likely to have pets who would be treated as a member of the family and these target customers have enough financial support to make them spend more money on caring their pets. Furthermore, the location is advantageous to the part of the proponents since people are most probably to go there to spend time together with their pets during their past time.
Promotion
Advertising can be used to promote the business in a way that it shows how convenient it is to have a memorial park for a pet. Having a marketing strategy is a requirement when it comes to putting up a business. The business will be involved in
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social media in order to communicate faster and able to adapt in the modern generation. Social media will be very helpful since internet world is just a click away and the researchers think that this is a good way to start promoting the business. In addition, using of billboards, tarpaulins and flyers will be used to help promote the business. Also, the business will give promos to attract the market. Since this is a new business, customers will be attracted to try some promos and the business will take advantage of it by making sure that the customers will get satisfied, and spread the business by word of mouth.
People
It is very important that the business owner/s are aware of the rights and benefits of each and every employee. The salary should be on time, rules and regulations should be implemented fairly, hiring would be done accordingly, and great respect should be properly practiced inside the workplace. Manpower is very important in this business because it will be more on service. The business will be offering services that can satisfy the needs of the pets and the wants of the pet owners, therefore, the presence of each employee is highly needed in daily operation of the business.
Physical Evidence
When it comes to the pet memorial park design and ambience, an open-air, beautifully landscaped, floral lawns, and extensive memorial gardens will be
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established. It includes landscaped lawns, plaque memorials and a limited number of upright headstones for the deceased animal. On the other hand, when it comes to the over-all environment, the approach would be to establish a set of basic design criteria. In addition, more careful consideration has to be given to finding the most suitable soil types in which to bury animal remains so as to minimize the effect of seepage on the environment and public health in order to avoid groundwater or surface-water pollution that caused by some cemeteries. The business will be introducing a mini-park which will consist of pet playground and garden which will be a good place to stay with the family and friends while spending time and reminiscing memories of their pet. The place will have a peaceful environment and this will accommodate number of people.
Process
Process is one of the most important factors in this kind of business. It is going to have a daily operation such as the maintenance of the pet memorial park and will be offering services for a number of hours. The researchers used the SMART (specific, measurable, attainable, realistic, and time-bound) method before coming up to a decision in order to assure that the business is feasible and will be successful after months and years of operating. The researchers also used the SWOT analysis and TOWS matrix for them to know and understand their business strengths and weaknesses. Through this method, the researchers will also be aware of the opportunities and threats that the business is going to encounter while having its day to day operation.
46
Chapter IV TECHNICAL ASPECTS
In this chapter, the specific services the business offers, the operations and service flows, and the list of machineries and equipment to be procured and utilized by the business will be discussed. Furthermore, the site of the proposed business is highlighted with an accompanying building lay out and as well as the projected timetable of the business.
47
Operation Process Flow
One of the most important phases of the process flow is the preparation phase. In order to deliver and maintain quality service to the valued customers, Pets & Pals will make certain that all things necessary are set up perfectly before the beginning of operations. The Pets & Pals Memorial Park will be opened for 15 hours, from 6am to 9pm and the Pets & Pals Office will be operating for 10 hours, 7 days a week, from 8am to 5pm, except for legal holidays. As soon as the memorial park opens at 6am, it is ready to serve the guests who want to do some activities like picnics, jogging or hang out inside the park together with their pets. Upon the entry of the guests, the assigned Security Guard will let the guest show his membership card; if he doesn’t have one, he needs to pay for the entrance fee which is P25.00 consumable for unlimited hours. When 8am strikes, the Pets & Pals Office will be opened. Upon the entry of customers, the manager will inquire if he wants to avail of the services offered by the business. After the customer chooses from the services, the manager will then ask him if he has any reservations or not. When the customer just inquires, the manager will just give details of the services and give the customer a brochure and ends the transaction. When the customer will avail any of the services, the manager will then show the available packages. After the customer avails the services, the manager will then give the customer a brochure and ask for his full and exact details including his name, contact number, address, etc. for further inquiries. When the customer has selected
48
among the services and made a transaction to bury his pet, the Assistant Manager will then contact the Embalmer about the schedule of preserving the pet’s remains and the Gravedigger to give the schedule of burial. For both office and memorial park division, cleanliness is a priority so the assigned Janitors should be alert in sensing irregularities in hygienic practices such as garbage disposal. For the security of the whole place, there will be an assigned Guards in each division. The shifting of schedule would only be applicable for the Security Guards. The Guard 1 assigned in the office will stay from 8am-8pm with 1 hour lunch break. The Guard 2 will be assigned in the guard house from 8am to 8pm with 1 hour lunch break and 1 hour coffee break while the Guard 2 will be shifted by Guard 3 from 7pm until 7am. At 7:00pm, all operating activities regarding to the Pets & Pals office will cease and the staff will prepare to close. However, this does not equate to the entire establishment being closed because the memorial park will still be in operation. There will be a general check-up of both of the divisions by the Assistant Manager and endorses all the necessary information to the General Manager. The income of the business will be accounted for and checked by Cashier. The Manager will review and reconcile the cash. Any overage be turned over to the business while shortage is the liability of the cashier to will the business. All other information in relation to the former statement will be forwarded and checked by the External Bookkeeper quarterly or whenever necessary to the business. The Janitors will be in charge of overseeing the cleanliness of the whole establishment. The equipment should be checked by the Assistant Manager to
49
guarantee that it has been properly turned off, then lighting should be turned off as well. After all the steps have been executed, the Manager should secure the facility by locking the door properly. Before the employees thumb out and leave the premises, the guard should check each and every employee and their belongings to provide the owners with reasonable assurance that theft by the employees will be avoided. Below is a flow chart that depicts the operation process flow of a completed business transaction.
Operation Flow Chart
Procurement of Stocks
Purchasing Manager prepares purchase requisitions Forward to Supply suppliers
Verify the quantity and quality of the goods according to the requisition and receipt
Goods received
Prepare receiving report
Deliver goods to Pets & Pals
Forward to the office
Supply
Supplier prepares goods
Place in the designated storage
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The diagram above shows the flow of procuring stocks in Pets & Pals. First, the assistant Manager will request for replenishment of stocks to the General Manager. The General Manager will then fill up the purchase requisition which will be forwarded to the suppliers. The supplier will prepare the goods ordered and then deliver it to Pets & Pals which will be received by the Assistant Manager. After that, the General Manager will check and verify the quantity and the quality of goods that were delivered if it is in the accordance with the purchase requisition and the receipt. When accurate, a receiving report will be prepared by the General Manager and the goods will be placed in its designated storages.
Internal Control System
Cashier will tally the sales
Forward the sales to the Bookkeeper
Forward to bank
Check and verify the sales and recorded transactions
Safe keep the money (Cashier)
EXACT
If
NOT EXACT
Check with the Cashier
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The internal control system is about the safe keeping of the cash sales of the company in a day or a week regardless of its policy. As for Pets & Pals, the cashier needs to count and tally its total sales of the day and forward it to the bookkeeper afterwards. The bookkeeper’s task is to check and verify if the cash sales is the same with the recorded transactions throughout the operations. If the accounting is not exact, the bookkeeper will go back to the cashier to adjust necessary corrections. If exact, on the other hand, the money will be kept in a safety vault and it will be forwarded to the bank every afternoon of the next operating day. Table 1. Gantt Chart Activities Feasibility Study
Jan Feb Mar Apr May X
X
Jun
Jul Aug Sep Oct Nov Dec Jan
X
Secure documents
X
and permits Construction
X
X
X
X
X
X
X
X
X
Procurement of materials/
X
Equipment Employee Hiring Training
X
X X
X
52
Preparation Business Opening
X X
53
List of Products
Memorial Markers
Solid Granite Pet Memorial Markers: Flat or Beveled. All markers come with engraved text. Paw print is optional. Beveled is where the marker is 6' in the back and slopes down to 4' in the front.
Price: Php5, 000
Flat Burial Markers: Small or Large and your choice of Black, Green or Burgundy. Durable diamond engraved gold lithochrome filled lettering. Price: Php4, 000
Solid Natural Garden Stone Marker: One size only. Paw print is optional. Size of stone is determined by the text to be engraved.
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Price: Php3, 000 Solid Bronze Marker with Granite Base: Special Treat Dog Bone. Price: Php2, 000
Solid Bronze Marker with Granite Base: Keepsake Cat Price: Php2, 000
Caskets
Pets & Pals Memorial Park proudly carries the highest quality pet caskets, dog caskets, and cat caskets. There are 2 of the most elegant coffins for pets - dogs, cats, and other beloved animal companions. These are available in different sizes: Small
(Php2, 500)
Medium
(Php3, 000)
Large
(Php4, 000)
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Pet Urns
Pets & Pals Memorial Park offers pet urns which are manufactured for outdoor gardens. It is sealed to protect against weather elements and is available in three sizes accommodating up to 150 lb. pets. Pet urns sizes are as follow: Small
(Php5, 000)
Medium
(Php5, 500)
Large
(Php6, 000)
Designer Keychain (P80.00)
White Printed Shirt (P200.00)
56
Designer Mugs (P130.00)
mbler (P180.00)
Black Printed Shirt (P230.00)
Project Location
Tu
57
The ideal place for the business is at Brgy. Granada, Bacolod City, containing an area of 4,000 square meters, more or less. The researchers chose this location because it is near a subdivision and people are most likely to have pets who would be treated as a member of the family and these target customers have enough financial support to make them spend more money on caring their pets. Furthermore, the location is advantageous to the part of the proponents since people are most probably to go there to spend time together with their pets during their past time.
58
Plant and Office Layout
Figure 1: Site Plan
Figure 2: Memorial Park Exterior View
59
Figure 3: Front Office and Chapel View
Figure 4: Office Interior View
60
Figure 5: Chapel Interior View
Figure 6: Pet Graveyard, Playground and Parking Lot Exterior View
61
Chapter V Financial Aspect
This chapter encompasses the financial aspect of this feasibility study as it establishes the assumptions, project costs, and initial working capital requirements that will all play a crucial role in considering the sources of financing the business, constructing the beginning and pro-forma financial statements and ultimately, formulating sensible financial analyses.
Project Cost PROJECT COST Cash Inventory Prepayments Organizational Cost Input VAT Property Plant and Equipment Total Project Cost
1 2 3 4 5
236,865.85 50000 26,055.15 83,008.00 6,000.00 8,598,071.00 9,000,000.00
Sources of Financing Pets & Pals’ Php 9,000,000 project cost is partly financed with Php 6,000,000 cash invested by the partners as stipulated in the Articles of Partnership. The remaining Php 3,000,000 is financed through a 5-year loan payable from Bank of the Philippine
62
Island, at a 7.5% annual interest. The loan is payable in five equal installments starting 2017.
Assumptions All amounts are estimates, otherwise, amounts are assumed to be factual. Cash A minimum cash balance on hand of Php 10,000 will be composed of: Cashier float Php 2,000, Change Fund Php 5,000, Petty Cash Fund of 3,000 (to be replenished semi-monthly or as needed), and Cash in Bank reserved for contingencies. The cash in bank reserved for contingencies is a PSBank demand deposit account which yields no interest.
Inventory The term inventory pertains to items found in the souvenir shop. The First-In, First-Out method is used for accounting inventory. For this projection, ten percent of items are assumed to be on hand as of year-end.
Payroll Labor rates is in accordance with the minimum wage of the labor code of the Philippines. The minimum wage as of January 2015 for Negros Island Region is P256.5, for businesses employing less than 10 people.
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The general managing partner and other capitalist industrialist partners will receive his salary in line with the profit and loss sharing stipulated in the articles of partnership (see Appendix A.) The rest of the employees except those which are considered third party to the entity will receive the minimum wage of the labor code of the Philippines. The minimum wage as of January 2015 for Negros Island Region is P256.50 for businesses employing less than 10 people. Salaries are subject to deductions due to absences and tardiness. No absences and tardiness are assumed to occur.
Withholding taxes are applied to the gross pay. Employees are paid every 15th and last day of the month.
Holiday pays are based on 12 legal holidays. The business will operate on New Year, The Day of Valor, Christmas, Maundy Thursday, Good Friday, and Black Saturday, Labor Day, All Saint’s Day, All Soul’s Day, Edil Fitr. Maundy Thursday and Good Friday is assumed to fall on April and Edil Fitr on August. All legal and special holidays are assumed to fall on a working day.
Employees shall receive a 13th month pay, which is 1/12 of the total basic salary earned for the year. Employees incurred no absences for the entire five years.
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Property Plant and Equipment The depreciation for the plant, property, and equipment is on a straight line basis with no salvage value. Presented below is the estimated useful life of each depreciable asset.
65 Depreciation Schedule Building Office Equipment Telephone with Wireless Router Emergency Light Water Dispenser Tower Fan Desktop Computer w/CPU CCTV Set Coffee Machine 3-in-1 Printer w/ Continuous Ink Filing Cabinet Bundy Clock Wall clock Smoke Detector Fire Extinguisher Sharp 32" Television Cash Register Aircon Memorial Park Equipment Benches Playground Set Hilltop Tents Burial and Cremation Equipment Pet Incinerator Lowering Device Sod Lifter Furniture and Fixture Office Chairs Office Table with Drawers Couch Set Vase Steel Filing Cabinet Small Bookshelf Cash Box Key Box Cleaning Tools Utility rack Spin Mop Brooms Dust pan Dust Remover Waste Bins Outdoor Trash Bins with Wheels
Est. Useful Life 30 8 8 8 8 8 8 8 8 8 5 5 8 8 8 8 8 10 10 10 20 10 10 8 8 8 8 8 8 8 8 3 3 3 3 3 3 3
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Prepaid Expenses Prepayments are expected to decrease by 20% per year. Supplies Supplies are divided into office, janitorial and funeral. 90% are assumed to be used annually and the 10% remaining will carry over as inventory beginning of the subsequent year.
Financing Activity Interest expense is 7.5% of the outstanding loan balance. Interest on the outstanding loan and the portion of the loan due is paid annually. The loan is payable in five equal annual installments.
Income Revenue is the income provided by the package burial and cremation services and fees, sales from grave markers, and park and playground admission fees. Other income is from the sale of souvenir shop items, fod stall rentals, and maintenance services.
Casket burial and cremation services, food stall rentals, and maintenance services are charged with 75% gross profit based on selling price, while 100% markup is allotted for grave markers and souvenir items.
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Services / Items Casket Burial Cremation Grave Markers Souvenir Items Food Stall Rentals Maintenance Services Park and Playground Admission Fees
Markup 75% profit on selling price 75% profit on selling price 100% markup 100% markup 75% profit on selling price 75% profit on selling price N/A
Expenses If the nature of the expense is attributable to both selling and administrative. SSS, Pag-IBIG, Philhealth, and withholding tax payable is paid at year end.
Miscellaneous expense amounts to 10,000 pesos annually.
Owner’s Equity The partners are allowed a maximum withdrawal of 5,000 pesos per month or 60,000 pesos annually. It is assumed that the partners are drawing the maximum amount in the next five years.
Investment Analysis WACC is computed using the cost of equity which is 10% and after tax cost of debt of 5.25%.
Rates The 3.96%, which is the average inflation rate from 2010-2014 outside National Capital Region, is assumed to be the growth rate of particular expenses and to sales
68
accordingly. Tax rate of 30% is used by Pets & Pals. This is based on the Philippines Corporate Tax Rate, September 15, 2015. Revenues, Cost of Services and inventory are exclusive of 12% VAT. No other items are applied with VAT except revenues, cost of services and inventories.
Particulars Sales Cost of Service Expenses (except salaries) Tax VAT (exclusive)
Growth Rate 3.96% 3.96% 3.96% 30% 12%
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PETS & PALS Statement of Comprehensive Income For a Five-Year Period
Note Service Revenue
1
Cost of Sales
2
Gross Income Other Income (Net)
3
Total Income Operating Expenses Selling
4
Administrative
5
EBITDA Depreciat ion EBIT Financing Cost EBT Tax Net Income
6
2017 5,299,02 5.22 1,392,27 2.36 3,906,75 2.86 1,051,92 0.00 4,958,67 2.86
2018 5,563,976 .48 1,461,885 .98 4,102,090 .50 1,104,516 .00 5,206,606 .50
Five Year Projection 2019 2020 2021 5,842,17 6,134,284 6,440,998 5.31 .07 .27 1,534,98 1,611,729 1,692,315 0.28 .29 .76 4,307,19 4,522,554 4,748,682 5.03 .78 .52 1,159,74 1,217,728 1,278,615 1.80 .89 .33 5,466,93 5,740,283 6,027,297 6.83 .67 .85
1,059,97 7.84 519,164. 65 3,379,53 0.37 187,946. 96 3,191,58 3.42 225,000. 00 2,966,58 3.42 889,975. 02 2,076,60 8.39
1,068,884 .37 440,787.7 8 3,696,934 .35 187,946.9 6 3,508,987 .39 180,000.0 0 3,328,987 .39 998,696.2 2 2,330,291 .17
1,078,14 3.61 445,602. 31 3,943,19 0.91 187,946. 96 3,755,24 3.95 135,000. 00 3,620,24 3.95 1,086,07 3.19 2,534,17 0.77
1,087,769 .51 450,607.5 0 4,201,906 .67 187,946.9 6 4,013,959 .71
1,097,776 .59 455,810.8 7 4,473,710 .40 187,946.9 6 4,285,763 .44
90,000.00 3,923,959 .71 1,177,187 .91 2,746,771 .80
45,000.00 4,240,763 .44 1,272,229 .03 2,968,534 .41
70
PETS & PALS PROJECTED STATEMENT OF FINANCIAL POSITION For a Five-year Period N Preot operatin 2017 2018 2019 2020 e g
2021
ASSETS Current Assets Cash
7
Inventories
8
236,865.8 5 50,000.00
2,630,61 5.25 5,000.00 20,844.1 2 2,656,45 9.37
4,361,54 5.40 5,198.00 16,675.3 0 4,383,41 8.70
6,274,16 9.31 5,403.84 13,340.2 4 6,292,91 3.39
8,402,45 6.85 5,617.83 10,672.1 9 8,418,74 6.87
10,755,8 91.30 5,840.30
Prepayments
9
26,055.15
8,410,12 4.04 8,410,12 4.04 11,066,5 83.42
8,222,17 7.08 8,222,17 7.08 12,605,5 95.78
8,034,23 0.13 8,034,23 0.13 14,327,1 43.52
7,846,28 3.17 7,846,28 3.17 16,265,0 30.04
7,658,33 6.21 7,658,33 6.21 18,428,6 05.56
889,975. 02 600,000. 00 1,489,97 5.02
998,696. 22 600,000. 00 1,598,69 6.22
1,086,07 3.19 600,000. 00 1,686,07 3.19
1,177,18 7.91 600,000. 00 1,777,18 7.91
1,272,22 9.03
3,000,000. 00 3,000,000. 00
1,800,00 0.00 3,289,97 5.02
1,200,00 0.00 2,798,69 6.22
600,000. 00 2,286,07 3.19
1,777,18 7.91
1,272,22 9.03
1,200,000. 00 1,200,000. Braza, Capital 00 1,200,000. Jalando-on, Capital 00 1,200,000. Jocsing, Capital 00 1,200,000. Solatorio, Capital 00 6,000,000. Total Partners' Capital 00 TOTAL LIABILITIES AND PARTNERS' EQUITY 9,000,000.00
1,721,45 0.35 1,513,78 9.51 1,513,78 9.51 1,513,78 9.51 1,513,78 9.51 7,776,60 8.39 11,066,5 83.42
2,313,93 1.88 1,873,24 1.92 1,873,24 1.92 1,873,24 1.92 1,873,24 1.92 9,806,89 9.56 12,605,5 95.78
2,963,49 9.69 2,269,39 2.66 2,269,39 2.66 2,269,39 2.66 2,269,39 2.66 12,041,0 70.33 14,327,1 43.52
3,672,59 5.80 2,703,81 1.58 2,703,81 1.58 2,703,81 1.58 2,703,81 1.58 14,487,8 42.13 16,265,0 30.04
4,443,78 5.43 3,178,14 7.78 3,178,14 7.78 3,178,14 7.78 3,178,14 7.78 17,156,3 76.53 18,428,6 05.56
Total Current Assets Non-current Assets Property, Plant and Equipment Total Non-current Assets TOTAL ASSETS
8,598,071. 00 8,598,071. 00 9,000,000. 00
8,537.75 10,770,2 69.36
LIABILITIES AND PARTNERS' EQUITY Current Liabilities Income Tax Payable Current Portion of Loan Total Current Liabilities
1,272,22 9.03
Non-current Liabilities Loan Payable Total Liabilities Partners' Equity Amurao, Capital
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PETS & PALS PROJECTED CASH FLOW STATEMENT For a Five-year Period Pre2017 2018 Operating Cash flows from Operating Activities Net Income Depreciation and Amortization Decrease (Increase) in Inventory Decrease (Increase) in Prepayments Decrease (Increase) in Organizational Cost Increase (Decrease) in Accruals Decrease (Increase) in Input VAT Net Cash Used in Operating Activities Cash flows from Investing Activities Decrease (Increase) in Purchase of Property, Plant and Equipment Net Cash Used in Investing Activities Cash flows from Financing Activities Increase (Decrease) in Loan Payable Partners' Investment Partners' Withdrawals Net Cash Used in Financing Activities Summary: Net change in cash Cash and Cash Equivalents, beginning Cash, End
2019
2,076,608.39
2,330,291.17
2,534,170.77
(50,000.00) (26,055.15)
187,946.96 45,000.00 5,211.03
187,946.96 (198.00) 4,168.82
187,946.96 (205.84) 3,335.06
(83,008.00)
83,008.00
-
-
108,721.19
87,376.97
(6,000.00)
889,975.02 6,000.00
(165,063.15)
3,293,749.40
2,630,930.15
2,812,623.91
(8,598,071.00)
-
-
-
3,000,000.00 6,000,000.00
(600,000.00)
(600,000.00)
(600,000.00)
(300,000.00)
(300,000.00)
(300,000.00)
9,000,000.00
(900,000.00)
(900,000.00)
(900,000.00)
236,865.85
2,393,749.40 236,865.85
1,730,930.15 2,630,615.25
1,912,623.91 4,361,545.40
236,865.85
2,630,615.25
4,361,545.40
6,274,169.31
(8,598,071.00)
PETS & PALS PROJECTED CHANGES IN PARTNERS' CAPITAL For the Year Ended 2017
Capital Net Income ary (10 % of Net Income) ance (Equal Sharing of Net ome - Salary - Bonus) hare in Net Income al apital
72
Amurao 1,200,000.00
Braza 1,200,000.00
PARTNERS Jalando-on 1,200,000.00
Jocsing 1,200,000.00
Solatorio 1,200,000.00
207,660.84
6,00
20
373,789.51
373,789.51
373,789.51
373,789.51
373,789.51
1,86
581,450.35 60,000.00 1,721,450.35
373,789.51 60,000.00 1,513,789.51
373,789.51 60,000.00 1,513,789.51
373,789.51 60,000.00 1,513,789.51
373,789.51 60,000.00 1,513,789.51
30 7,77
73
PETS & PALS PROJECTED CHANGES IN PARTNERS' CAPITAL For the Year Ended 2018
Beginning Capital Share in Net Income Salary (10 % of Net Income) Balance (Equal Sharing of Net Income - Salary – Bonus) Total Share in Net Income Withdrawal Ending Capital
Amurao 1,721,45 0.35
Braza 1,513,7 89.51
PARTNERS Jalando-on 1,513,7 89.51
Jocsing 1,513,7 89.51
419,4 52.41 419,4 52.41 60,0 00.00 1,873,2 41.92
419,4 52.41 419,4 52.41 60,0 00.00 1,873,2 41.92
419,4 52.41 419,4 52.41 60,0 00.00 1,873,2 41.92
233,02 9.12 419,45 2.41 652,48 1.53 60,00 0.00 2,313,93 1.88
S
74
PETS & PALS PROJECTED CHANGES IN PARTNERS' CAPITAL For the Year Ended 2019
Beginning Capital Share in Net Income Salary (10 % of Net Income) Balance (Equal Sharing of Net Income - Salary Bonus) Total Share in Net Income
Withdrawal Ending Capital
Amurao 2,3 13,931.8 8
PARTNERS Jalando Braza -on Jocsing 1, 1, 1, 873,241 873,241 873,241 .92 .92 .92
Total Solatori o 1,8 73,241.9 2
2 53,417.0 8
4 56,150.7 4 7 09,567.8 1 60,000.0 0 2,9 63,499.6 9
9,806,89 9.56
253,417. 08
456,150 .74
456,150 .74
456,150 .74
456,150 .74
456,150 .74
456,150 .74
4 56,150.7 4 4 56,150.7 4
60,000. 00 2, 269,392 .66
60,000. 00 2, 269,392 .66
60,000. 00 2, 269,392 .66
60,000.0 0 2,2 69,392.6 6
300,000. 00 1 2,041,07 0.33
75
PETS & PALS PROJECTED CHANGES IN PARTNERS' CAPITAL For the Year Ended 2020
Beginning Capital Share in Net Income Salary (10 % of Net Income) Balance (Equal Sharing of Net Income - Salary Bonus) Total Share in Net Income
Withdrawal Ending Capital
PARTNERS Amura Jalando Jocsin Solator o Braza -on g io 2, 2, 2, 2, 2, 963,499 269,392 269,392 269,392 269,392 .69 .66 .66 .66 .66
1 2,041,07 0.33
274,677 .18
274,677. 18
494,418 494,418 .92 .92
494,418 494,418 494,418 .92 .92 .92
769,096 494,418 .10 .92
494,418 494,418 494,418 .92 .92 .92
60,000. 60,000. 60,000. 60,000. 60,000. 00 00 00 00 00 3, 2, 2, 2, 2, 672,595 703,811 703,811. 703,811 703,811 .80 .58 58 .58 .58
Total
300,000. 00 1 4,487,84 2.13
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PETS & PALS PROJECTED CHANGES IN PARTNERS' CAPITAL For the Year Ended 2021
Beginning Capital Share in Net Income Salary (10 % of Net Income) Balance (Equal Sharing of Net Income Salary – Bonus) Total Share in Net Income
Withdrawal Ending Capital
PARTNERS Amura Jaland Jocsin Solator o Braza o-on g io 3, 2, 2, 2, 2, 672,595 703,811 703,811 703,811 703,811 .80 .58 .58 .58 .58
Total 1 4,487,84 2.13
296,853 .44
296,853. 44
534,336 534,336 534,336 534,336 534,336 .19 .19 .19 .19 .19 831,189 534,336 534,336 534,336 534,336 .63 .19 .19 .19 .19 60,000. 60,000. 60,000. 60,000. 60,000. 00 00 00 00 00 4, 3, 3, 3, 3, 443,785 178,147 178,147 178,147 178,147 .43 .78 .78 .78 .78
300,000. 00 1 7,156,37 6.53
N ot e Note 3: Other Income (net) 2017 2018 2019 1: Souvenir Items 90,000.00 94,500.00 99,225.00 S Cost of Souvenir Items 45,000.00 47,250.00 49,612.50 er Food Stall Rentals 300,000.00 315,000.00 330,750.00 vi Cost of Food Stall Rentals 75,000.00 78,750.00 82,687.50 ce 1,042,560.00 1,094,688.00 1,149,422.40 R Maintenance 2 2 2 2 2 Service Service 260,640.00 273,672.00 287,355.60 ev Cost 0 0 of 0 Maintenance 0 0 1,051,920.00 1,104,516.00 1,159,741.80 en 1 1 1 2Total 2 ue 7 8 9 0 1 3 3 3 4 4 Note,4: , , , , Selling 4 6 8 0 2 Expenses 2017 2018 2019 8 5 4 3 3 Salaries 5 9 2 4 6 835,065.35 835,065.35 835,065.35 Expense , , , , , Funeral 3 6 5 7 4 Supplies 3,600.00 3,742.56 3,890.77 3 0 8 1 4 Expense C6 2 2 2 7 12,600.00 13,098.96 13,617.68 as Telephone . . . . . 29,400.00 30,564.24 31,774.58 ke Water 0 8 9 0 6 ts Electricity 0 0 4 9 9 67,200.00 69,861.12 72,627.62 7 7 8 8 9 Insurance 3,150.00 3,274.74 3,404.42 4 7 1 5 0 Expense 2 9 8 and 9 2 Repairs 84,000.00 87,326.40 90,784.53 , , , , , Maintenance 5 6 6 5 5 Janitorial 12,362.49 12,852.04 13,360.99 C Supplies 0 2 0 3 1 re Internet 0 5 6 6 3 12,600.00 13,098.96 13,617.68 m . Total . . . . 1,059,977.8 1,068,884.3 1,078,143.6 ati 0 0 2 5 3 4 7 1 on 0 0 5 6 9 6 7 7 7 8 7 0 3 7 1 0 4 9 6 5 G, , , , , ra 6 1 3 3 1 ve 2 5 6 3 5 M 6 8 5 4 0 ar . . . . . ke 7 0 9 2 9 rs 2 6 6 6 7
2020 104,186.25 52,093.13 347,287.50 86,821.88 1,206,893.52 301,723.38 1,217,728.89
2021 77 109,395.56 54,697.78 364,651.88 91,162.97 1,267,238.20 316,809.55 1,278,615.33
2020
2021
835,065.35
835,065.35
4,044.84
4,205.02
14,156.94 33,032.86 75,503.67
14,717.55 34,340.96 78,493.62
3,539.23
3,679.39
94,379.59
98,117.02
13,890.08
14,440.13
14,156.94 1,087,769.5 1
14,717.55 1,097,776.59
78
Note 5: Administrative Expenses Office Supplies Expense Organizational Cost Outsourcing Cost Telephone Water Electricity Insurance Expense Repairs and Maintenance Janitorial Supplies Expense Internet Miscellaneous Expense Total
2017 23,449.64 83,008.00 308,128.80 5,400.00 12,600.00 28,800.00 1,080.00 36,000.00 5,298.21 5,400.00 10,000.00 519,164.65
2018 24,378.24 308,128.80 5,613.84 13,098.96 29,940.48 1,080.00 37,425.60 5,508.02 5,613.84 10,000.00 440,787.78
2019 25,343.62 308,128.80 5,836.15 13,617.68 31,126.12 1,080.00 38,907.65 5,726.14 5,836.15 10,000.00 445,602.31
2020 26,347.23 308,128.80 6,067.26 14,156.94 32,358.72 1,080.00 40,448.40 5,952.89 6,067.26 10,000.00 450,607.50
2021 27,390.58 308,128.80 6,307.52 14,717.55 33,640.12 1,080.00 42,050.15 6,188.63 6,307.52 10,000.00 455,810.87
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Note 6: Depreciation
Est. Useful Life
Building
30
Office Equipment Telephone with Wireless Router Emergency Light Water Dispenser Tower Fan Desktop Computer w/CPU CCTV Set Coffee Machine 3-in-1 Printer w/ Continuous Ink Filing Cabinet Bundy Clock Wall clock Smoke Detector Fire Extinguisher Sharp 32" Television Cash Register Aircon
Cost 2,600,000.0 0
2017
2018
2019
86,666.67
86,666.67
86,666.67
2020
2021
86,666.67 86,666.67
8
2,900.00
362.50
362.50
362.50
362.50
362.50
8 8 8
3,000.00 2,000.00 6,396.00
375.00 250.00 799.50
375.00 250.00 799.50
375.00 250.00 799.50
375.00 250.00 799.50
375.00 250.00 799.50
8
41,800.00
5,225.00
5,225.00
5,225.00
5,225.00
5,225.00
8 8
8,999.00 1,000.00
1,124.88 125.00
1,124.88 125.00
1,124.88 125.00
1,124.88 125.00
1,124.88 125.00
8
13,980.00
1,747.50
1,747.50
1,747.50
1,747.50
1,747.50
8 5 5 8 8
8,600.00 6,500.00 180.00 1,738.00 3,000.00
1,075.00 1,300.00 36.00 217.25 375.00
1,075.00 1,300.00 36.00 217.25 375.00
1,075.00 1,300.00 36.00 217.25 375.00
1,075.00 1,300.00 36.00 217.25 375.00
1,075.00 1,300.00 36.00 217.25 375.00
8
10,000.00
1,250.00
1,250.00
1,250.00
1,250.00
1,250.00
8 8
15,000.00 140,000.00
1,875.00 17,500.00
1,875.00 17,500.00
1,875.00 17,500.00
1,875.00 1,875.00 17,500.00 17,500.00
80
Memorial Park Equipment Benches Playground Set Hilltop Tents
10 10 10
5,000.00 30,000.00 5,000.00
500.00 3,000.00 500.00
500.00 3,000.00 500.00
500.00 3,000.00 500.00
500.00 3,000.00 500.00
500.00 3,000.00 500.00
Burial and Cremation Equipment Pet Incinerator Lowering Device Sod Lifter
20 10 10
1,150,000.00 4,000.00 5,000.00
57,500.00 400.00 500.00
57,500.00 400.00 500.00
57,500.00 400.00 500.00
57,500.00 400.00 500.00
57,500.00 400.00 500.00
8
4,000.00
500.00
500.00
500.00
500.00
500.00
8
8,000.00
1,000.00
1,000.00
1,000.00
1,000.00
1,000.00
8 8
9,000.00 1,500.00
1,125.00 187.50
1,125.00 187.50
1,125.00 187.50
1,125.00 187.50
1,125.00 187.50
8
5,000.00
625.00
625.00
625.00
625.00
625.00
8 8 8
550.00 500.00 650.00
68.75 62.50 81.25
68.75 62.50 81.25
68.75 62.50 81.25
68.75 62.50 81.25
68.75 62.50 81.25
Furniture and Fixture Office Chairs Office Table with Drawers Couch Set Vase Steel Filing Cabinet Small Bookshelf Cash Box Key Box
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Cleaning Tools Utility rack Spin Mop Brooms Dust pan Dust Remover Waste Bins Outdoor Trash Bins with Wheels Total
Note 7: Cash Cashier Float Change Fund Petty Cash Fund Cash in Bank – PSBank (Reserve for Contingency) Cash in Bank – BDO Total
3 3 3 3 3 3
1,358.00 1,000.00 400.00 100.00 60.00 860.00
452.67 333.33 133.33 33.33 20.00 286.67
452.67 333.33 133.33 33.33 20.00 286.67
452.67 333.33 133.33 33.33 20.00 286.67
452.67 333.33 133.33 33.33 20.00 286.67
452.67 333.33 133.33 33.33 20.00 286.67
3
1,000.00
333.33
333.33
333.33
333.33
333.33
4,098,071.00
187,946.96
187,946.96
187,946.96
187,946.96
187,946.96
2017 2,000.00 5,000.00 3,000.00
2018 2,000.00 5,000.00 3,000.00
2019 2,000.00 5,000.00 3,000.00
2020 2,000.00 5,000.00 3,000.00
2021 2,000.00 5,000.00 3,000.00
50,000.00
50,000.00
50,000.00
50,000.00
50,000.00
2,570,615.25 2,630,615.25
4,301,545.40 4,361,545.40
6,214,169.31 6,274,169.31
8,342,456.85 8,402,456.85
10,695,891.30 10,755,891.30
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Note 8: Inventory Designer Mugs Designer Key Chains White T-Shirt Black T-Shirt Tumbler Total
Note 9: Prepayments Business Protect Insurance Office Supplies Janitorial Supplies Funeral Supplies Total
2017 1,000.0 0 500.00 1,000.0 0 1,000.0 0 1,500.0 0 5,000.00
2018 1,039.6 0 519.80 1,039.6 0 1,039.6 0 1,559.4 0 5,198.00
2019 1,080.7 7 540.38 1,080.7 7 1,080.7 7 1,621.1 5 5,403.84
2017 4,448.00 7,963.80 5,232.32 3,200.00 20,844.12
2018 3,558.40 6,371.04 4,185.86 2,560.00 16,675.30
2019 2,846.72 5,096.83 3,348.68 2,048.00 13,340.24
2020
2021
1,123.57
1,168.06
561.78
584.03
1,123.57
1,168.06
1,123.57
1,168.06
1,685.35
1,752.09
5,617.83
5,840.30
2020 2,277.38 4,077.47 2,678.95 1,638.40 10,672.19
2021 1,821.90 3,261.97 2,143.16 1,310.72 8,537.75
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Pets & Pals Financial Ratios Ratio Liquidity Ratio
Formula
2017
2018
2019
2020
2021
Interpretation
8.47
Indicates the extent to which current liabilities are covered by assets expected to be converted to cash in the near future
Current Ratio
Current Assets/Current Liabilities
Quick (Acid Test) Ratio
(Current Assets(Inventories + Prepaid Expenses)/Current Liabilities
1.78
2.74
3.73
4.73
8.46
Measures the firm's ability to pay off short-term obligations without relying on the sale of inventories
Debt Ratio
Total Liabilities/Total Assets
30%
22%
16%
11%
7%
Measures the percentage of funds provided by creditors
Times-Interest Earned Ratio
EBIT/Interest Charges
14.18
19.49
27.82
44.60
95.24
Measures the firm's ability to meet its annual interest payments
Debt-to-Equity Ratio
Total Liabilities/Total Partners' Equity
42%
29%
19%
12%
7%
Peso debt per peso partners' equity
N/A
N/A
N/A
N/A
N/A
1.78
2.74
3.73
4.74
Debt Ratio
Asset Management Ratios Day Sales Outstanding (Average Collection Period)
Accounts Receivable/ (Sales/360)
84
Payables Deferral Period
Accounts Payable/(Cost of Goods Sold/360)
N/A
N/A
N/A
N/A
N/A
Fixed Assets Turnover
Sales/Net Fixed Assets
63%
68%
73%
78%
84%
Number of times fixed assets are converted into sales
Total Assets Turnover
Sales/Total Assets
48%
44%
41%
38%
35%
Number of times total assets are converted into sales
Profitability and other ratios Gross Profit Margin
Gross Profit/Net Sales
74%
74%
74%
74%
74%
Operating Profit Margin
EBIT/Net Sales
60%
63%
64%
65%
67%
Net Profit Margin
Net Income/Net Sales
39.19%
41.88%
43.38%
44.78%
46.09%
Return on Total Assets
Net Income/Total Assets
18.76%
18.49%
17.69%
16.89%
16.11%
Basic Earning Power
EBIT/Total Assets
28.84%
27.84%
26.21%
24.68%
23.26%
Measures the ability of the firm's assets to generate operating income
Return on Common Equity
Net Income/Total Partners' Equity
26.70%
23.76%
21.05%
18.96%
17.30%
Measure the rate of return on partners' equity
Equity Multiplier
Total Assets/Total Partners' Equity
1.42
1.29
1.19
1.12
1.07
Peso asset per peso partners' equity
Gross income per peso sales Operating income per peso sales Net income per peso sales Measures the rate of return on total assets
85
Market Value Ratios Price/Earnings Ratio
Price per Share/ Earnings per share
N/A
N/A
N/A
N/A
N/A
Market/Book Ratio
Market Price per share/ Book Value per share
N/A
N/A
N/A
N/A
N/A
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Liquidity Ratios
Liquidity ratios give the company an idea if debts that are maturing within the year will be paid off when due. The results of the ratios show that the company’ liabilities can be covered by the assets that are expected to be converted in the near future. The ratios increased significantly because of the increase in cash. The quick ratio is somehow the same with the current ratio since the company keeps only a small number of inventories. This means that the company can pay off its debts without relying too much on inventory.
Asset Management Ratios
Asset management ratios give the company an idea of how efficiently the assets are being managed and used in the operations. The fixed asset turnover continues to increase in five years because of the relatively high sales of the company.
Debt Management Ratios
Debt management ratios give the company an idea how the firm has financed its assets as well as the company’s ability to repay its long-term debt. We can see that the debt ratio is low because only a small figure of the total assets are financed with debt. The Times interest earned ratio measures how the company’s ability to meet its annual interest payment with Earnings before interest and taxes (EBIT). A low debt ratio means that more investor financing is used rather than creditor financing.
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Profitability Ratios
Operating margin is high and this indicates that with low cost, Pets & Pals is able to generate a greater operating income. The profit margin in the first year of operations is lower because of the debt obtained by the company which affects interest costs. It eventually increased because the company was able to pay its debt in the subsequent years. ROA indicates how efficiently a company converts the money used to purchase assets into profits. The company’s ROA is somehow low since it uses costly equipment. BEP shows the company’s ability to generate operating income. It shows the earning power of the company’s assets before the inclusion of tax and debt. However, the results are somehow unfavorable because it is decreasing.
88
Net Present Value NPV 0 (9,000,000.00) Outflow Inflow Net Cash Flow PV of Net Cash Flow
(9,000,000.00) (9,000,000.00)
1
2
3
4
5
3,293,749.40 3,293,749.40 2,994,317.64
2,630,930.15 2,630,930.15 2,174,322.44
2,812,623.91 2,812,623.91 2,113,165.98
3,028,287.54 3,028,287.54 2,068,361.13
3,253,434.45 3,253,434.45 2,020,126.83
2,3
NPV
70,294.01 Cash Payback Period
Cash Payback Period Inflow(Outflow) Balance CPP
0 1 (9,000,000.00) 3,293,749.40 (9,000,000.00) (5,706,250.60) 3 years and 9 months
2 2,630,930.15 (3,075,320.45)
3 2,812,623.91 (262,696.54)
4 3,028,287.54 2,765,591.00
5 3,253,434.45 6,019,025.45
Internal Rate of Return IRR 0 (9,000,000.00) Outflow Inflow Net Cash Flow IRR
(9,000,000.00) 20%
1
2
3
4
5
3,293,749.40 3,293,749.40
2,630,930.15 2,630,930.15
2,812,623.91 2,812,623.91
3,028,287.54 3,028,287.54
3,253,434.45 3,253,434.45
89
Pets & Pals has a positive NPV of 2,370,294.01 pesos. This NPV causes this study to be feasible even more.
The cash payback period (CPP) is the length of time required for an investment’s cash flows to cover cost. The business’ cash payback period is 3 years and 9 months. This indicates that the business can expect funds to become available for future projects in less than 5 years.
IRR
20%
The 17% IRR proves that the business is feasible for the reason that they are much higher than the cost of capital of 10%. This is an indicator that the return on the firm’s investments is greater than its cost. Therefore, the business or project should be undertaken.
90
Customers per year Service Revenue
290
290
290
290
290
4,958,672.86
5,206,606.50
5,466,936.83
5,740,283.67
6,027,297.85
42,000.00
43,663.20
45,392.26
47,189.80
49,058.51
96,000.00
99,801.60
103,753.74
107,862.39
112,133.74
Variable Costs: Water Electricity Supplies Total Variable Costs
44,710.34
46,480.87
48,321.51
50,235.04
52,224.35
182,710.34
189,945.67
197,467.51
205,287.23
213,416.60
Contribution Margin
4,775,962.53
5,016,660.84
5,269,469.31
5,534,996.44
5,813,881.26
120,000.00
124,752.00
129,692.18
134,827.99
140,167.17
835,065.35
835,065.35
835,065.35
835,065.35
835,065.35
308,128.80
308,128.80
308,128.80
308,128.80
308,128.80
4,230.00
4,354.74
4,484.42
4,619.23
4,759.39
18,000.00
18,712.80
19,453.83
20,224.20
21,025.07
18,000.00
18,712.80
19,453.83
20,224.20
21,025.07
10,000.00
10,000.00
10,000.00
10,000.00
10,000.00
Fixed Costs: Repairs and Maintenance Salaries Expense Outsourcing Services Insurance Expense Telephone Internet Miscellaneous Expense Organizational Cost Depreciation Total Fixed Costs EBIT Interest Expense EBT Taxes Incurred Net Profit After Tax Operating Breakeven Point
83,008.00
-
-
-
-
187,946.96
187,946.96
187,946.96
187,946.96
187,946.96
1,584,379.11
1,507,673.45
1,514,225.36
1,521,036.73
1,528,117.82
3,191,583.42
3,508,987.39
3,755,243.95
4,013,959.71
4,285,763.44
225,000.00
180,000.00
135,000.00
90,000.00
45,000.00
2,966,583.42
3,328,987.39
3,620,243.95
3,923,959.71
4,240,763.44
889,975.02
998,696.22
1,086,073.19
1,177,187.91
1,272,229.03
2,076,608.39
2,330,291.17
2,534,170.77
2,746,771.80
2,968,534.41
139
132
132
133
133
Breakeven Point Analysis
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Chapter VI SOCIO-ECONOMIC ASPECT
Social Impact
Regarding social impact, pets have long held a liminal space in human culture— less than family, more than animal. The exact emotional space a pet occupies shifts constantly, from culture to culture, and from family to family, and is more or less always in flux. So it’s natural that the idea of pet burial be fraught with various complications: what one sees as a personal tribute to a beloved family member another may see as frivolous and excessively sentimental; what one sees as a touching memorial may strike another as an inappropriate disposal of potentially hazardous bio waste. At the same time, pet ownership has exploded, and along with it an increasing focus on pet burial; as secular pet memorial companies have spread, More than just a matter of understanding our attitude towards pets, though, this particular fascination reflects our attitudes towards death, religion, and ritual as well. While previous scholars have often ignored pets, considering them “inauthentic animals,” Pets & Pals Cemetery instead recognizes that it is precisely the liminal status of pets in human culture that makes them such an important touchstone for understanding how human attitudes shift and evolve. In doing these practices is to raise fundamental questions about the nature of a religious practice and even what it means to be human. In a society where attitudes toward death are changing culturally and financially, pet funeral services are perhaps a way of maintaining ritual without religion, a way of preserving the value of the funeral
92
custom in the absence of its traditional subject (for example, an extended family member). The ritual’s importance remains, particularly as it assuages our anxiety over death, even when there’s not necessarily a human to occupy the center of that ritual. Basically, as a business is introduced to the market, it is customary that the demand for manpower and labor will increase. Thus, as a social impact of putting upPet Memorial Park, the business will give off employment opportunities among those who have been qualified with the required skills. In line with this impact, providing employment as to this business type will technically decrease the unemployment rate in the metro. The business, although requires itself to have certificated professionals in the workplace, have spared job opportunities to the marginalized groups in the context of academic accreditation, in such a way that some positions do not require a bachelor’s degree. The business will also practice corporate social responsibility among its internal and external benefactors. One social responsibility that the business will adhere to is the preservation of the natural resources and combatting pollution which can further cause environmental deterioration.
Economic relevance
In the economic relevance, there are indications that people are choosing less expensive ways of saying goodbye to deceased pets. An increasing number of pet owners are choosing the lower-cost option of cremation rather than burial. Partly, this reflected the rising trend of human cremations, but it was also because of the tight
93
economy. We have people that have plots here now that would just rather cremate just because they can't afford burial at the moment. What we are seeing is people are making different choices in that area, not that they are not taking care of their pet. As to the business’ economic contribution, Pets & Pals Memorial Park, as an entity that requires legal recognition and accreditation upon formation through permit issuance and licensure, needs to comply with lawful conditions like the obligation of paying tax. Hence, as taxes are collected by the rightful agency, they become economical funds. Another economic relevance of the business is its participation in making the flow of money continuous since a business involves monetary transactions. Lastly, the existence of this type of business can affect the demand and production context of the supplies of the business, specifically the perishable ones.
94
Chapter VII CONCLUSIONS/RECOMMENDATIONS
Conclusion
The researchers have come up into a conclusion that Pets and Pals had the potential to set up in the market. The contents of this feasibility study defend this decision, as to its management aspect, marketing aspect, technical aspect, financial aspect, and socioeconomic aspect. The results have revealed that the business is measurable, attainable, time-bound and profitable. Therefore, it can be concluded that Pets and Pals should be established.
Recommendation
The researchers of this study therefore recommend the future researchers who would find this relevant in their study and will use this as a reference, to be wellprepared and to create a time table in order for the researchers not to lose track in the amount of time given to finish the study. Consciousness in any given situation must be also practiced. Most importantly, collaboration and teamwork among members should be always present; wise and effective segregation of work should be strongly observed in order for the study to be successful.
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