Feasibility Study Research Paper

Executive summary The mill will be called Nyc Sugar incorporated with the meaning of bringing back the real sweet flavor of sugar into the market. The mill will have its own plant located at Ibayo, Balanga city, Bataan. This site is selected because of its strategic position, where the supplies of public and private services are adequate and the raw materials are readily available. The need of the sugar mill company is to solve the problem of sugar shortages which increases day by day in this city and also try to deal with unemployment problems which increases with time here in Bataan.This will be achieved by creating more employment opportunities for the young generation living in the city as well as outside. Raw materials Normally sugar is used as an additive to tea and may also be added in the production of sugary products. The main raw material will be sugarcane which will undergo the following production stages. a. Harvesting of the sugarcane from the farm b. Crashing of the sug arcane to get the contents c. Drying of the contents to obtain solid sugar products d.Packaging and branding and latter transporting to the market The plant will have its own sugarcane plantation near the firm as it is budgeted that about 2/3 of the total land area of the firm will be used as the plantation square and the rest will be for infrastructure. Transportation The plant will be located in Ibaya near Balanga city where transport in not a major problem and therefore workers will easily access the plant and the transportation of the processed sugar will also be easily delivered to the market.Project long term objective The firm shall stick to its mission of providing the best of sugar and products to the customers and ensure that it maintains the best ethical standards in the production process. It should positively respond to the environmental needs of the society and if there will be expansion needs; it will be done without overlooking its primary objectives. FinancingIt is expected that most of the fund will come from the shares owned by the stockholders or the owners and incase the funds from the shares will not be able to cover up the firm’s primal expenses, the firm will then obtain loans from financial institutions to cover up the extra expenses for optimal production. Market study and demand and supply Since Bataan is geographically situated near Philippines centre, the sugar products can be transported to the neighboring provinces in the country like Manila which is a leading distributor of sugar will be a great recipient of the sugar product.The establishment of this firm will be of great help as it will increase the supply of sugar, and also lessen the importation of sugar which makes sugar expensive In the Bataan. Marketing strategy, scale and volume There will be a vigorous effort to secure a market before a commitment is even made to build the mill if it would be most desirable to have the financial participation of one or more major users who can guarantee the purchase of the substantial portion of the procedure production.The receiving of the raw materials supply will as well be considered. The firm is budgeted to have a production line which will represent about 800,000 tons per unit day which will heavily depend on the production conditions. Pricing and consumer surveys Pricing will follow the established market prices and practices which are usually determined by the forces of demand and supply, however because of sugar uncertainty of sugar product during the start up period, some price concessions will be made in order to break into the market. Industry and competitionSince Nyc sugar mill will not be alone in the production of sugar, we have hereby come up with the following competition strengths. a. The branding name Nyc will be a strategy of welcoming even more customers to come and feel the niceness of our sugar. b. The packaging size will start as little as a half-kilogram bag up to 10kg to cater for all possible users irrespective of financial capability as opposed to other sugar producing firms which package from 1kg to 5kg. The response of the packaging strategy may give our firm an upper hand in the market resulting into more sales and therefore higher profits.Business model In the business model, it is expected that the firm will earn most of its money from the recurring sales of finished sugar products and selling permissions. We will market our products to the public through ventures like advertising and also increase sales through the pricing strategy. Operating facilities, equipment and staff Major equipments in the firm will be sugar processing machines which will be located in the factory. Again the firm will need to build infrastructure like paths and buildings. Below will be the required staff members in the board of directors -Chairman of the board Maintenance and material director -Sales director -Production director The firm will see to it that the accountants ar e licensed by the Professional Regulation Commission in their respective professions and all persons have at least an experience in their respective jobs. The accountant will be responsible for the preparation of the books of accounts, the sales director will assist in selling and finding markets and the production director will be responsible for production and ensuring productivity of processes. Waste disposal Among the various methods of waste materials disposal will include the following a.Elimination of the source. This will involve a careful attention of the source of pollutants b. Recovery of waste products. This will involve deciding on how to discard waste materials c. Waste treatment. Effect of laws and risks The firm will have to comply with the laws regarding environmental pollution and control and this will include payment of any fees if any from the international environmental control unit. To deal with risks, the firm would put across some extra funds to cater for ris ks resulting from factors like economic changes and increased competition.