A feasibility study on Cozy Works Incorporated

Nine business management majors under the entrepreneurship program of De La Salle University formed Cozy Works, Incorporated. The corporation formed by the group is a humble contribution to the growing bag industry, not only inside the campus, but also in the real business industry. The group will be meeting every Sunday from 7:00 a.m to 6:00 p.m. at 561 M. Santos St. Ph. 4 Gatchalian Subdivision, Sucat, Parañaque City for the production of Sleep N\u27Bag. Sleep N\u27 Bag, as the name implies, is both pillow and a bag. This product deviates from the conventional by its additional feature of a detachable pillow. Also, it has a design of a mailman\u27s bag making it attractive, stylishly different and easy to carry. This design would be suitable for the youth, which is the product\u27s target market. The product\u27s bag part is made of cotton fabric with designs varying from plain to printed. This part measures 11 1/2 x 12 and it is made by folding one big rectangular cloth into half and connecting their halves by the two ends of the handle. Same as the bag, the pillow flap\u27s size is likewise 11 1/2 X 12 . It is also made of cotton fabric and it contains six handfuls of open fiber as filling. The pillow flap is connected by a zipper jacket to the main part of the bag, which makes it possible for one to be detached from the other. Inside the bag is an 11 1/2 x 12 dark colored PVC tafetta lining which gives shape and form to the bag. An 11 x 3 1/2 in. paper bag will serve as its packaging. The group decided to market Sleep N\u27 Bag to students of De La Salle University and other institutions, relatives and friends. They decided that this innovative product will make it possible for people to bring pillows whenever they want to go without experiencing inconvenience. They had determined that there would be a sizable market for the product from students who like to take quick naps or rest in school or when stuck in traffic to relax and relieve stress. The market study helped the group to determine the viability of the product to the primary market. A sample size of 299 students from a population of 1,306 Freshmen and Junior CBE students of De La Salle University participated in the survey. The group used simple random sampling using the table of random numbers to ensure that everyone on the population list has an equal chance of being selected. The group conducted a series of time and motion studies to determine the plant capacity. The average capacity is 10 units per day and the efficiency rate is 69.02%. The group is going to meet every Saturday at the Maminta\u27s residence in Parañaque for production. The group chose the said location to be the plant site because among the other options, it is the most convenient for the group. The cost of manufacturing Sleep N\u27 Bag is Php 210.25. The group used the cost-plus pricing method in coming up with the price and they decided to put a mark-up of 40%. The selling price of the product is then, Php 294.75, since the group decided to apply the psychological pricing strategy. The proponents have to sell nine units every month in order to break-even. The management study gives an overview of the administrative program of the group. It discusses about the form of ownership the group used which is a corporation. The responsibilities and qualifications of each officer is determined in this section. The rules and regulations to be implemented during the operation are also stated. A Gantt Chart is devised to have a planned sequence of different activities taking place for the 10 months of operation. The financial study shows the projected profitability of the business. It attempts to forecast the financial status of the business during its operations for the next ten months. The group would be able to produce 435 units and if all these units are sold, the group will have a projected income of Php 34,351.14. Finally, the group took into consideration its positive contribution to the society. The proponents will patronize locally made goods by purchasing the raw materials from local stores. Also, they will try their best to improve their sewing skills to provide the market not only an innovative product but a quality one. Through hard work, perseverance and cooperation from all of them, the proponents believe that they are able to meet the challenges that lie ahead