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this study is all about water refilling station business.
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i
Presented to the Faculty of
Department of Accounting Education of
UM Tagum College
Tagum City
In Partial Fulfillment of the Requirements
For the course STRATEGIC BUSINESS ANALYSIS
By:
March, 2022
ii
In partial fulfillment of the requirements for the course Strategic Business Analysis, this
study entitled:
has been prepared and submitted by THERESE ANGEL MAE S. COLAJA, JYRSONMAE
Subject Teacher
Accepted in partial fulfillment of the requirements for the degree
Bachelor of Science in Accountancy
Program Head - BSA
Gina Fe G. Israel, EdD
Dean of College
iv
This undertaking is concerned primarily with water refilling. The study is aimed at
establishing the marketing plan, production plan, organization and management plan,
and financial plan of a water refilling business in a specific location, thereby
determining the cost and benefits associated with the project, its degree of profitability,
and ultimately, its feasibility.
This feasibility study will also serve as a guide and reference to students who
plan to engage in the same undertaking and to future entrepreneurs who may need
the data presented herein.
v
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
PREFACE iv
TABLE OF CONTENTS v
Objectives of the Study 1
Methodology 1
Scope and Limitations 1
Brief Description of the Project 2
Brief Profile of the Proponents 2
Project Contribution to Economy 2
Project Summary 3
Description of the Product 4
Location 4
Market Area 4
Primary Target Market 6
Historical Demand 7
Projected Demand 7
Historical Supply 8
Projected Supply 9
Honorarium Expense 32
Rent Expense 33
Utilities Expense
Transportation Expense
Projected Operating Expense 35
Form of Business Enterprise 36
Management and Organization Structure 36
Management Qualifications and Functions 37
Major Assumptions 39
Investment Cost 40
Projected Income Statement 41
Projected Statement of Cash Flow 42
Projected Statement of Financial Position 43
Projected Statement of Changes in Equity 44
Gross Profit Margin 45
Net Profit Margin 46
Return on Asset 47
Payback Period 48
2
Brief Description of the Project
The proposed business, H2 Big, is a water refilling station. It is a sole proprietorship type
of business which provides a purified water for the community. Nowadays, because of the
convenience on the part of the consumers, the station will offer to deliver directly at the
consumer’s home and other certain industries. The target market is the household around
Dalisay, Gante Road, Magugpo West, Tagum City.
Brief Profile of the Proponents
Colaja, Therese Angel
Mae S.
Bachelor of Science in
Accountancy
Tagum City, Davao Del Norte
Galagar, Jyrsonmae A.
Bachelor of Science in
Accountancy
Panabo City, Davao Del Norte
Ihalas, Jona May F.
Bachelor of Science in
Accountancy
Tagum City, Davao Del Norte
San Juan, Christine
Abucay A.
Bachelor of Science in
Accountancy
Carmen, Davao Del Norte
Tundag, Adora Mae E.
Bachelor of Science in
Accountancy
Tagum City, Davao Del Norte
Project Contribution to Economy
H2 Big Water Refilling Station is a manufacturing service that will provide the community
with clean water source. It will also give employment opportunities to people on the
neighborhood. Furthermore, the proposed business also provides more funds to the
government in the form of taxes and other mandatory government fees.
3
Market Summary
According to the demand and supply of this study, the proponents found out that the
business can supply in the market based on production capacity. In this aspect, this study is
feasible since the target population is willing and capable to avail the business products and
services.
Production Summary
In this aspect, based on the cost of machinery and equipment that will be utilized in the
business and at the same time the expenses that will be incurred for the daily operation of the
business, the production aspect is feasible because the sales can cover up the costs and
expenses.
Management and Organization Summary
H2 Big Water Refilling Station is a sole proprietorship form of business. The business will
hire 3 employees to help run the business. First is the front liner which oversees the business
for at 8 hours. Next, is the cashier that handles the financial aspect of the business. The last
one is the delivery man who will transport the refilled water containers to customers’ homes.
Therefore, this business is feasible in this aspect.
Financial Summary
In this aspect, the business is feasible because, from the first year (202 2 ) of the business
operation, the net profit earned is continuously increasing for the next two consecutive years
5
Figure 1. Vicinity Map of H2 Big Water Refilling Station
Figure 2. H2 Big Water Refilling Station Floor Plan
FLOOR AREA
( 81 SQ. M.)
6
Target Market
The target market of H2 Big Water Refilling Station is the household population of
Dalisay, Gante Road, Barangay Magugpo West, Tagum City.
SWOT Analysis
Strengths
H2 Big Water Refilling Station has a good location
to gain potential customers and uses modern
communication to interact with its customers.
Moreover, it also has a wide range of probable
customers, offering safety and excellent product
and services.
Weaknesses
The business is a newly established water station
in the location thus, it lacks brand recognition.
Opportunities
The opportunities for water refill stations are
enormous. This is because water is a necessary
commodity that we use on a daily basis for a variety
of purposes.
Furthermore, it benefits from the fact that H2 Big is
located at the main street where many people pass
by every day.
Threats
We are well aware that, like any other business,
one of the major threats we will face is an economic
downturn and unfavorable government policies. It
is true that economic downturns have an impact on
purchasing power. Another threat that may
confront us is the competitors that offer the same
product and service.
8
Table 2
Projected Demand
Year Demand Average %
Increase
Average
Increase
Projected
Demand
Supply
Main Competitors
The business’ main competitors will be the establishments near the station offering same
product and service in relation to the proposed business which will share with its demand on
the market for specific products. These main competitors namely are Aqua Vox, Queen’s Flow
Water, and Art Waters.
Historical Supply
Annual past supply is computed through getting the total estimated number of gallons
they would sell and deliver on an annual basis.
Table 3
Historical Supply
Competitors 2019 2020 2021
Aqua Vox 18,250 20,075 25,
Queen’s Flow Water 14,600 16,425 18,
Art Waters 9,125 10,950 12,
Total 41,975 47,450 56,
9
The annual average percentage increase is computed using the moving average method,
the computation of which is presented in Annex B of this paper. The total projected supply is
computed by multiplying the amount in the base year by the sum of one and the average
percentage increase.
Table 4
Projected Supply
Year Base Year Average %
Increase
Average
Increase
Projected
Supply
11
Market Share Analysis of Competitors
The market share of the competitors is based on the estimated number of gallons they
would sell and deliver annually.
Table 6
Market Share Analysis of Competitors
Competitors
Number of Gallons
Market Share Monthly Yearly
Total 2 , 900 29,000 100%
12
Market Share Analysis of the Business
The annual market share is assumed to increase three percent (3%) every year. The
production capacity is estimated to cope up with the market share of the unsatisfied demand.
Table 7
Market Share Analysis of the Business
Year Unsatisfied
Demand
Production
Capacity
The projected selling price of the business assumes that there is no increase in selling
price per year. The selling price is obtained as a result from the survey or specifically based on
the price range of the competitors.
Table 8
Projected Selling Price
Product and Services
Year 5 - gal Container for
Delivery
5 - gal Container for
Pick-up
