“A FEASIBILITY STUDY ON TWO STOREY HOTEL”

Presented in partial fulfillment of the course

Business Feasibility Study

To:

By:

Submitted on:
 i

ACKNOWLEDGEMENT

ii
 TABLE OF CONTENTS

Page

I. ACKNOWLEDGEMENT ii

II. EXECUTIVE SUMMARY 1

A. Highlights 1
B. Conclusion to the Feasibility Study 1

III. PROJECT BACKGROUND

A. Project Proponents 2
B. Proposed Business Name 2
C. Type of Business Organization 2
D. Location of Head Office 2

IV. MANAGEMENT AND PERSONNEL STUDY

A. Management and Personnel
B. Systems Approach

V. MARKETING STUDY
A. General Market Description
B. Demand
C. Supply
D. Demand-Supply Analysis
E. General Marketing Practices
F. Proposed Marketing Program
G. Projected Sales

VI. TECHNCAL STUDY

A. The Product
B. Production Process
C. Materials Handling
D. Manufacturing Site
E. Project Layout
F. Plant Size and Production Schedule
G. Building and Facilities
H. Machineries, Equipment and Utilities
I. Raw Materials Requirements

Iii
 J. Manpower Requirements
K. Waste and Waste Disposal Method
L. Production Costs

VII. FINANICAL STUDY

A. Major Assumptions
B. Projected Financial Statements

VIII. SOCIO-ECONOMIC STUDY

A. The Project Employees
B. The Government
C. Other Beneficiaries

IX. PROJECT IMPLEMENTATION

A. Gantt Chart of Activities
B. Program Evaluation & Review Technique (PERT)
C. Critical Path Method (CPM)

iv
II. EXECUTIVE SUMMARY

A. Highlights

1. Project Background

a. Name of Project Proponent

b. Type of Business Organization

c. Location of Project

d. Proponent

2. Management and Personnel

3. Marketing Study

4. Technical Study

5. Financial Study

6. Socio-Economic Study

7. Project Implementation Study

B. Conclusion to the Feasibility Study

1.
III. PROJECT BACKGROUND

A. Project Proponents
1. Composition of Project Proponents
Name Nationality Address % Ownership

B. Proposed Business Name

1.
2. (State the reason for your choice of business name)

C. Type of Business Organization

1. General partnership
2. State the reason for your choice

D. Location of Head Office

1. (Town), Nueva Vizcaya

IV. MANAGEMENT AND PERSONNEL STUDY

A. Management and Personnel

1. Staffing

2. Organizational Structure

3. Job Descriptions (required job functions)

4. Job Specification (required minimum acceptable human qualities and skill

necessary to perform the job properly)

5. Personnel’s proposed salary

5.1 Manager
5.2 Staff

B. Systems Approach
1. (state here about how you will run the business and manage your personnel)

2. (state your company policies)

V. MARKETING STUDY

A. General Market Description

1. (state here the general description of your target market, its size, geographical
locations and family potential size)

B. Demand
1. (state here the potentiality of your product demand)

C. Supply
1. (state here the supply situation of your target market)

2. (in this portion, present how you could satisfy the demand)

D. Demand-Supply Analysis
1. (present here a sensitivity analysis about the demand-supply gap)

E. General Marketing Practices

1. (state here the national or local government marketing policies that could affect and
assist you in the marketing of your product)

2. ( present here your market share)

F. Proposed Marketing Program

1. (Present here national/local government marketing policies and assistance
packages/programs that will benefit your project)

2. (present your proposed product-mix; how many different product lines will be sold)

3. (present here your marketing-mix strategies); design also the marketing strategies
of the products along the following life cycle: introduction stage, growth stage,
maturity stage, and decline stage.

4. (describe your distribution strategies)

5. Advertising and promotion strategies (determine your publicity strategies; space

advertising, mail, sales presentations, endorsements, market demonstrations,
streamers/posters, )

G. Projected Sales
1. (present here your selling price for the next five years and your projected
assumptions for arriving at the figures. State your projection method)

2. (present a table of your sales projections for the next five years)
Illustrative example.
 Products Year 1 Products Year 2
/By /By
Products Products
Des- Unit Quantity Sales Des- Unit Quantity Sales
cription Price cription Price

Total Total

VI. TECHNCAL STUDY

A. The Product

1. Present the detailed description of your product.

1.1 Dimensions

1.2 compositions/physical properties

1.3 quality specifications

1.4 present here your drawings/pictures/sketches

B. Production Process
1. State here the practical type of operation process for main product.
2. Present here the practical type of operation process for the “by-products”.

C. Materials Handling
1. Describe here your materials handling system for the various types of products.

D. Project Site
1. Describe your proposed project site in detail.
2. Present the estimated costs;
Cost Estimates of Site Acquisition and Preparation
Item Description Quantity Amount Total

Land
Legal Expenses
Right of Way
Tenants’s Right
Total

E. Project Layout
1. Two-storey building with prevailing construction cost per square meter at
P13,000.00 with total land area of 500 square meter. The construction cost per
square meter includes the excavation and foundation works..

Show the detailed drawings drawn to scale.

 2. Present the detailed costs of lay-outing your project.

F. Plant Size and Production Schedule

1. Describe your plant size

1.1 Main product

Product % Units Year Year Year Year Year Year Total

Capacity 0 1 2 3 4 5

1.2 By-products

By- % Units Year Year Year Year Year Year Total

Products Capacity 0 1 2 3 4 5

2. Describe the factors that may affect your plant’s production capacity. (resources
and input constraints, effect of external factors, such as disputes/complaints, or
technical downtimes)

G. Building and Facilities

1. Present a detailed engineering drawing of each of your structural facilities. Describe
also the project floor plan layout for each section; functional flows, production flows,
distribution flows, quantity flows, etc.

H. Machineries, Equipment and Utilities

1. Present a detailed list of machineries, equipment and utilities
1.1 plant process machineries and equipment.
1.2 Mechanical machineries and equipment.
1.3 Process instrumentation and control machineries and equipment.
1.4 Tools and spare parts
1.5 Present a detailed breakdown of utilities that will be needed.

I. Raw Materials Requirements

1. Present a detailed breakdown of your project’s raw materials requirements.
Department Raw Description Unit cost Quantity Total cost
materials needed
 J. Manpower Requirements
1. Present here the direct personnel requirements

2. State the skills and levels of training qualifications of the personnel required per
department

3. State the personnel workloads, number of hours per shift per department.

4. Present here the personnel direct labor costs per department including all benefits
due them.
Department Position No. Rate Total
Basic Benefits

K. Waste and Waste Disposal Method

1. Describe all waste products

L. Production Costs
1.

VII. FINANICAL STUDY

A. Major Assumptions
1.

B. Projected Financial Statements

1.

VIII. SOCIO-ECONOMIC STUDY

A. The Project Employees

1.

B. The Government
1.

C. Other Beneficiaries
1.

IX.PROJECT IMPLEMENTATION

A. Gantt Chart of Activities

1.
B. Program Evaluation & Review Technique (PERT)

C. Critical Path Method (CPM)