CHAPTER 1

The Problem and Its Background

Introduction

Nowadays, demand for nachos is increasing due to gain in

popularity in snacks, items and the various rich flavors which the

consumers continue to crave for. Some successful food industries are

coming up with slight breakthroughs focusing on food service in creating

such gourmet nachos and other common favorite type of nachos to make

it turn into a classier recipe and healthier snack than the rest, of varieties

somewhat available in the marketplace. Therefore, the proponents came

up with an innovation that will likely pull the consumers desire that has an

appetite for a Mexican snack. It also serves as a wholesome and

affordable alternative for the nacho chip itself.

This study manifested the use of cassava as the main ingredient in

the process instead of the traditional flour-and-bread chips, commonly

called tortilla chips. Cassava can be described as a long tuberous starchy

root about two inches around and eight inches long. The root has a brown

fibrous skin and snowy white interior flesh. Other names for cassava are

yucca, manioc, mandioca, yucca root, casabe, and tapioca.

According to Rodriguez (2015), cassava is widely grown in the Latin

America and the Caribbean. Its been around, since before Columbuss

arrival, it is a staple food of the Taino, Carib, and Arawak tribes. These

indigenous people developed a method of extracting poisonous Prussic

acid from the bitter cassava to make the bread. Because it was so crucial to
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the culture, the natives revered it. Amidst the 15th Century, a Spanish

historical account describes a ceremony in which a native priest blessed

cassava bread and then divided it among the tribal people present. The

recipients then preserved the bread to protect these people from danger

throughout the following year. Cassava was first introduced into

Asia during Spanish occupation of the Philippines and was distributed

throughout tropical Asia by the beginning of the nineteenth century.

The main crisis or reason why the proponents decided to use

cassava instead of the traditional nacho chips is that because the

proponents discovered, other than the fact that it is more relatively

economical than the latter, traditional nacho chips are usually made up of

flour and other artificial preservatives which it may be found with a slight

trace of unhealthiness and unnatural as in the way it is made or prepared

in various ways. Therefore, the proponents replaced traditional nacho

chips with fresh cassava roots such that it is an organic product and

healthy alternative. Nonetheless, it has more protein than that of other

tropical food sources. Also, the adequate potassium amounts which found

in cassava play as an important component of cell and body fluids that

help regulate heart rate and blood pressure.

Statement of the Problem

This study seeks to determine the viability of producing and selling

Nachos made from Cassava roots.

Specifically, it answers the following sub-questions:

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The Management Plan

1. How much is the proponents initial capital?

2. What are the activities involved in the business and the time

allotted?

3. What form of ownership will the respondents apply in the business?

4. What are the positions needed and the corresponding duties for the

operation of the business?

5. What will be the organizational structure of the proposed business?

6. How much salaries and wages, as well as the different benefits, will

be given to each employee?

The Technical Plan

1. What are the contents of the product?

2. What are the raw materials needed in manufacturing the product?

3. What are the steps in manufacturing the product?

4. Where will the business take place?

5. How long does each step in the manufacturing process cover?

6. How many days in a week does the business operate?

7. How many servings (grams) will be produced after the process?

8. What are the utilities needed in order to operate the business?

9. What will be the plans for waste disposal?

10. How much is the cost of each serving?

The Marketing Plan

1. How is the demand and supply condition of the product?

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2. Who are the possible target markets?

3. What is the proposed plans regarding the products presentation?

4. How did the proponents arrive at the proposed selling price?

5. In what ways can the proponents promote the product?

The Financial Plan

1. How much capital will be needed for the operation of the business?

2. Where will be the sources of funds?

3. Where will the proponents spend the contributed funds?

4. How do the financial statements appear over a 5-year operating

period?

5. How long will it take for the business to return the investments of

the proponents?

The Socio-Economic Plan

1. What are the effects and benefits of producing nachos made out of

Cassava roots to the society?

2. What are the economic implications of the proposed product?

Objective of the study

The study covers various plans of the operation and the making of

the proposed product or business. It includes the management, technical,

marketing, financial and social economic plans.

The Management plan

1. To know the project originators, investors and managers of the

business and to determine how much is the capital contribution.

2. To discuss the activities to do and the time allotted to each.

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3. To identify the type of ownership to be formed.

4. To enumerate the different positions, qualifications and its duties

and responsibilities.

5. To adopt an organizational structure for the business.

6. To establish a detailed compensation scheme for the employees of

the business.

The Technical plan

1. To identify the contents of the product.

2. To breakdown the raw materials needed in manufacturing the

product.

3. To discuss the steps in manufacturing the product.

4. To determine the place of the business.

5. To analyze the time needed in each step of the manufacturing

process.

6. To identify the operating days of the business in a week.

7. To identify the quantity of servings produced after the manufacturing

process.

8. To discuss plans pertaining to utilities.

9. To discuss plans pertaining to waste disposal.

10. To compute for the production cost per unit.

The Marketing plan

1. To analyze the demand and supply of the product.

2. To identify possible target markets.

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3. To discuss the presentation of the product.

4. To describe the computation for the product selling price.

5. To discuss about the promotion strategy for the product.

The Financial plan

1. To analyze the capital needed for the operation of the business.

2. To identify the sources of funds.

3. To identify the allotment of the funds.

4. To describe the financial statement of the business after a 5-year

operating period.

5. To analyze the period of payback.

The Socio-Economic plan

1. To identify the effects and benefits of the product to the society.

2. To analyze the economic implication of the proposed product.

Scope and Delimitation of the Study

The feasibility study focuses on manufacturing nachos made from

cassava roots. Cassava will be the main ingredient of product of the

business. The proponents target customer/ respondents will be the

__________ of _____________.

The study discussed the different plans of the business, namely,

Management, Technical, Marketing, Financial, Socioeconomic plan of

establishing the business.

The Management plan in the study supports in the organization of

labor force, setting up of policies, enterprise structure to carry out the

operations effectively and efficiently.

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The Technical plan intends to select the augmentation and

configuration of layout, machinery model, plant capacity, materials and

other technical factors to attain cost minimization and profit maximization.

The Marketing plan ascertains the probability in the future

foreseeing the expected demand for the product. It shows the basis for

determining the prices and applicable marketing arrangements and

operations.

The Financial Plan quantifies the specific financing or budgeting

requirements of the business with regards to types and cost of the assets

to be acquired and it is expressed in peso terms.

The Socioeconomic plan, involves the study of the projects

prospective benefits to the country as a whole, thereby the provision of the

business will aim to contribute to the advancement of the economy.

The proposed study has some limitation due to time constraint in

which the sequence of tasks cannot be delayed, as well as financial

constraints that also takes part for the decision-making of the proponents.

Likewise, the proponents have not yet dealt with the kind of proposed

study and other limitations due to directions of other academic

requirements.

Research Methodology

The proponents employed the descriptive method of research, it is

designed to provide a picture of a situation as it naturally happens.

Although this type of research is greatly accurate to determine the

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situation but it does not gather the source or root of the concept of this

type of research is to define the data and situation. This draws out

characteristics about what is being scrutinized and involves the

exploration of the existing phenomena. It may be used to justify current

practice and make judgment and also to develop theories. For the

intention of this study, the proponents used descriptive method of

research because of its quality of demonstrating and containing

description with regard to the judgment of the respondents and to obtain

detailed and qualitative information necessary to the inception and

application of the study.

Instrument and Technique Used

The proponents provided structured questionnaire as an instrument

in gathering pertinent data required in the study. The proponents

employed survey method as a basis of collecting data to arrive at the

unbiased and individualistic results. A survey is a method for collecting

data assessing the insights and discernments by an individual towards the

existing inclinations and prevailing trends. For this purpose, the

proponents will administer paper-and-pencil questionnaire for the

respondents to answer clearly in correspondence with the given

questions. The respondents were freely given time to complete the survey

by the moment the questionnaire is handed over. After collecting the

survey questionnaires, the profile of the respondents and other related

sentiments about consumption of branded nacho snacks, etc. will be

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tallied computed, analyzed, and classified. The proponents will also

conduct an interview with the existing competitors trading near

____________. This interview aims to gain information about the opinion

of the seller or supplier to determine the annual supply of similar product

that the business sells in the particular area.

Primary sources of data in the study are the outcome of the survey

questionnaires while secondary sources of data were from the

undergraduate research and theses, online sources and other studies and

related literatures done by institutions and organizations.

Sampling Procedure

The proponents utilized the stratified random sampling wherein the

proponents divided the entire population and drawn independently into

different subgroups or strata, then randomly selects subjects that

proportionally constitute from the different strata. A sample of size from

the total population can be determined using of Slovins formula. Each

stratified sample, namely the specific school/department, was computed in

proportion with its given population by dividing the specific population to

the total population then multiplied by the computed sample size.

Slovins Formula:

Therefore, n = ___

Where:
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n = sample size

N = total population

e = margin of error

Table 1

No. of Samples in ______________

School/Department Population No. of Sample

Total