The Problem and Its Scope Page |1

CHAPTER 1
THE PROBLEM AND ITS SCOPE
INTRODUCTION
Rationale of the Study
Having seen the necessity of food, our society needs a more in depth
study on how such kind of foodstuff will be made healthier and cheaper. Many
companies were engaged in businesses which provide people in their basic
needs for survival the food. Thus, these food companies had this as an
inherent dilemma on how to have raw materials that are readily available and
have a healthier component that could basically supply consumers with quality
products while also minimizing waste to save mother earth.
Wheat, a raw material used in producing flour, is not found in the
Philippines, making local flour millers to import from other countries. Thus, the
flours available in the market are expensive. Further, there is a possibility that the
importer flour may outrun the local industry and consequently dominate the
market.
According to www.philstar.com, January 1, 2014, the bakery industry in
Cebu is projected to sustain its growth by accounting a significant contribution on
the total production volume of the food industry in 2014. With this case, several
baking industries are now taking into consideration the availability of the flour in
our society that can be used to manufacture such product for a lesser cost. With

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our dependence on imported wheat, the researchers were encouraged to
conduct this study to determine whether banana peelings can be a good
alternative to produce flour to produce high-potassium-calcium bread that only
satisfies human needs but also nutritional needs.
The Philippines is one of the Top 3 banana-producing countries in 2010
including India and China. Banana is the leading fruit grown in the Philippines
and a consistent top dollar earner. In 2011, Philippines have an existing
production area of 450,125 hectares that have produced a volume of 9,165,046
MT1. Banana peelings (Musa Sapientum) have been reported to prevent anemia
by stimulating the production of hemoglobin in the blood. Its role to regulate
blood pressure has been associated with the high content of potassium.
Most often, banana peelings are just thrown away as waste. This study
however, has dual purpose; to utilize the wastes from manufacturing companies
and to convert them into flour for the bakeries to produce healthier and cheaper
bread products. The proponents believe that using the Banana Peel Flour has a
greater edge to help the food industries. If this project is proven feasible and
subsequently implemented, the local bakeries located in Carcar City, Cebu would
ultimately benefit from the project.

STATEMENT OF THE PROBLEM

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The objective of this study was to determine the viability and profitability of
the Proposed Production of flour from Banana Peels and its Distribution.
Specifically, the following questions were answered.
1. Is the proposed production of flour from banana peels and its distribution
feasible under each of the following aspects?
1.1 Technical Aspect;
1.2 Marketing Aspect;
1.3 Legal and Taxation Aspects;
1.4 Financing Aspect;
1.5 Financial Aspect;
1.6 Management;
1.7 Socioeconomic Desirability; and
1.8 Strength, Weaknesses, Opportunities and Threats

2. Based on the findings, what recommendation maybe proposed for the

project?

SIGNIFICANCE OF THE STUDY

This study has been conducted with specific methodologies and
examinations, not only for its feasibility and viability, but also its significance to
the parties involved. These are the following:
Researchers
Aside from complying with its obligatory requirements in the course, the
researchers also acquire a profound knowledge and strong foundation on how to
provide a basic need, which is food in the form of bread that is made cheaper
and healthier. Through the study, the researchers discovered a new and

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innovative way to use banana peel instead of leaving them as waste. Moreover, it
made them undergo into certain struggles and hardship that boost their sense of
creativity, camaraderie, leadership, confidence and interpersonal skills.

Government

With the continuing growth of the Philippine economy, this study will help
the government in determining if the proposed business will help the society in a
way that it could be beneficial to the people. This study could help the
government decide whether the proposed business should be implemented or
not and if it would help boost the economic stability of the country.

Prospective Implementers

This study provides information and enhanced framework to those future

implementers whether to venture on and invest in the proposed business. This
will provide them with sufficient basis to forecast the possible risks and losses of
the businesses operation that will be useful in decision making.

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Future Researchers

This study provides the future researchers a constructive resource that will
help them to utilize their time and lessen their burden. Administering a study is
much more challenging if it is systematically provided and guided by certain
protocol and manual that lead them to their desired end-state. Moreover, this also
provides them profound information that they may refer on to the future
researchers and proponents.

Target Market

Though increasing number of studies conducted all over the world has its
own reason and purpose in their existence. The study provides the target market
a firm basis of productive information that will yield to a decision whether to
patronize the kind of product which the proposed business would engage in. This
will provide them reasonable assurance that the product that they are about to
buy underwent a procedural and systematic study.

Financial Institutions

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The source of business capital and to put the business into existence is
one of the main factors that the researchers have to consider. This study will
provide the financial institutions a foretaste of what is the business in the future,
its profitability, payback period, internal rate of return, and other financial aspect
of the study. This would lead them into a decision whether they could possibly
extend financial assistance to the implementers and prospectors.

RESEARCH DESIGN
A research design is needed before the research can start. It is the overall
strategy used to integrate the different components of the study in a coherent
and logical way, thereby, ensuring to address the research problem effectively.
The research design will also help reduce the uncertainty of the research
evidences.
Research Environment
The study covered bakeries in Carcar City where 22 local bakeries are
operating their business in the place, which is located at the southern part of
Cebu, Philippines. Carcar City is the second city after Cebu City. It follows Talisay
City and San Fernando, Cebu, respectively. Carcar City is around 42 kilometers
away from Cebu City and it will take approxomately 2 hours to get to the place
through a public utility bus available in the Cebu South Bus Terminal. The city is
best known for its town plaza which serves as its landmark and tourist spot.
Research Methodology and Instruments Used

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Descriptive survey method was used in the conduct of this study.
Quantitative and qualitative information were gathered by conducting inquiries,
surveys, researches, interviews and reading journals/articles, magazines, books
and other related materials. The survey questionnaire utilized was a researchermade. Subsequently, the answered questionnaire were retrieved, tallied,
tabulated, analyzed, interpreted and processed to be more functional and useful.
Another technique applied in gathering information is data mining. This
method addressed the use of reliable public information. As part of the process,
the proponents were able to obtain valuable information from the city hall of
Carcar City. Furthermore, the proponents also consulted the Department of
Science and Technology (DOST) and Department of Environment and Natural
Resources (DENR) in order to accurately gather information relating to the study.
The researchers had also generated questionnaires which are specially
developed to obtain specific and relevant information from different local bakeries
of the city.
Population and Respondents
The intended respondents of the study are the local bakeries of Carcar
City, Cebu. Data relating to the population of registered bakeries are gathered
from the City Hall. It was found out that there are 22 bakeries existing in the
place. Out of the total population, only 15 responded to the survey. Of the seven
remaining population, some refused to cooperate and declined to answer the
questionnaire and some were not reached by the proponents due to its distance
from the city. Accordingly, only 68% of the total listed and recognized bakeries

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were considered as respondents. The table in the next page showed the
bakeries operating in Carcar City and the respondents of the study.

Table 1
Total Number of Population and Respondents
Bakeries in Carcar
Bread After Bread Pastry Shop
C & Triple J Bakeshop
Julies Finest Breads and

Population
1
1
1

Respondent
0
1
0

Percentage
0%
100%

Pastries
Ahl Richie Bakeshop
Mang Tinapay
Mama Uvys Bakeshop
Taberns Bakeshop
Maiquis Bread, Cakes and

3
2
2
1

3
2
1
0

0%
100%
100%
50%
0%

Pastries
Parkn Go Bakeshop
New Adds Breadshoppe
Ka Joaquin-Bandin Bakeshop
Fernas Bakeshop
Super Metro
Arbees Bakeshop
Tinongs Bakeshop
Lola Luz Bakeshop
LDB Bakeshop
Total Percentage of

100%

1
1
1
1
1
1
2
1
1

1
0
0
1
0
1
2
1
1

100%
0%
0%
100%
0%
100%
100%
100%
100%

22

15

68%

Respondents over
population

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Research Procedures
With the aim to collect sufficient and accurate information, essential
research procedures were followed. First, a comprehensive academic research
were done by surfing in the internet, visiting different websites and reading
journals/articles, books, magazines and other materials related to the study.
Another helpful procedure was inquiring relevant data from government offices of
the city concerning the population of bakeries in the place. Thorough inspection
was likewise performed in the city of Carcar to be more aware of the local
bakeries and its environment. Furthermore, a survey was done through giving
questionnaires in gathering information relating to the viability of the proposed
project. Also, an inquiry to Department of Science and Technology was
conducted to consult for professional advises.
Limitations of the Study
Amidst the desire of gathering exact details, still there are uncontrollable
factors affecting the validity and accuracy of the information.
Cost-benefit constraint
The proponents covered only the bakeries within the city proper
where the center

for trade and industry is located and the bakeries

located along the street. These spots are where majority of the bakeries
are situated, thus, mountainous bakeries where not visited

due to the

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cost-benefit constraint.

In spite of this fact, samples surveyed are

considered reasonable and satisfactory.

Unresponsive Respondents
During the distribution of the questionnaires, some bakeries visited
refused to respond and chose not to cooperate due to lack of authority.

Estimation of Figures
Some information was estimated due to the unavailability of some
details. However, the estimates were done conservatively to only include
those data which are directly related to the subject.
Time Constraint
The proponents do not have enough time in thoroughly
investigating every detail of the study. Thus, such may have affected
completeness and quality of the information contained in the study.

DEFINITION OF TERMS
For the readers and aspiring businessmen to fully comprehend what the
study is all about, defining the technical terms to laymen's term is necessary. The
following terms need to be defined:
Additives
Used in a certain product to either enhance flavor, give more desirable
appearance and change its color.

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Cardava
This is also known as "saba banana". It is the most common cultivar in the
Philippines. It has short, stubby and highly angular form. It has thick and yellow
skin when ripe. It has creamy white pulp, fine textured core and seeds.
Cavendish
This is a tropical kind of banana that has bright yellow skin. Compard to
Cardava, this banana is slimmer and has fewer black spots on it. It cab easily be
determined from Cardava because of its form and color.
Extender
This is a substance that is not wholly applied to a mixture. It is applied in a
proportionate amount of a specific ingredient that adds its desired texture and
taste. This is also an added ingredient to increase the bulk of the usual product
that can be made.
Feasibility Study
This is a field of study that assesses the practicality of a proposed product.
This consists of analyzing and evaluating whether the project is technically
feasible and viable.
Gluten

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It is a substance (protein composite) that is found in wheat flour and other
related grains. It is responsible to make the dough elastic.
Grinding
The manner of breaking or crushing the bulk of banana peels into small
pieces of particles using a grinding machine.
Lutein
This is a deep yellow pigment found in leaves of plants and in egg yolk.
This is a powerful antioxidant that protects the eye from free radicals and harmful
frequencies of UV radiation from the sun. It has been proven to reduce the risks
of cataracts and macular degeneration.
Potassium
This is a nutrient found in banana peelings which is essential in body's
growth. This helps maintain the function of heart, kidneys, muscles, nervous
system and fluid balance. This also regulates the blood circulation, reduces heart
failure and serves to counter bad effects of sodium.
Preservatives
These are food additives that are intended to limit the growth of dangerous
microbes to the product.
Sieving

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The manner of ensuring the quality of fine texture of flour by separating
big particles of grounded banana peels from pulverized one.
Soaking
The manner of putting the banana peels in water filled-large barrels for a
period of time.
Sodium Metabisulfite
This is whitish yellow crystalline powder compound that is used in food as an
anti-oxidant preservative. It is also a main anti-microbial preservative that
removes bacteria and other single-celled organisms present in foods.
Steaming
The method of gently cooking the banana peels by the application of the
pressurized water vapor using a steamer. In this process, nutrients present in
banana peels are retained for no agitation is involved.
Tagok
This is a kind of substance that is present in banana peels. This thick and
sticky element has white in color and can be easily be recognized by its texture.

Trytophan

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This is an amino acid that is a component of most proteins. This is a
nutrient present in banana peels which increases serotonin levels of the body
and effects mood.