CHAPTER 1 INTRODUCTION

Aspiring entrepreneurs may have an idea about the type of product that they would like to make. This can come from seeing others successfully producing a food and wanting to copy them or from talking to friends and family members about products that they think they could make. However, an idea for a business is not a sufficient reason to begin production straight away, without having thought clearly about the different aspects involved in actually running the business. Too often, people invest money in a business only to find out later that there is insufficient demand for the product or that it is not the type that customers want to buy. To reduce this risk of failure and losing money, potential producers should go through the different aspects of running their business by conducting feasibility study on the business they would like to pursue. Food business is very rewarding since man can give up almost everything except food. Men have to eat in order to live. As such, the students from STI College Dasmarias were inspired to conduct a study on food manufacturing business. Since the Philippines is the world leader in coconut production, the students chose a unique and rare delicacy that could be extracted from coconut palm trees. This feasibility study will explore the attractiveness of ubod or heart of coconut palm in producing burger patties. In this study, ubod will be used as meat substitute in the production of burger patties.

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1.1 Background of the Study Despite condemnation throughout the world, the hamburger sandwich is one of the most successful foods in the world. The attraction of the hamburger is that it is inexpensive, convenient, and filling. Hamburgers are also versatile. At the minimum, hamburger sandwiches consist of just cooked ground beef in a bun. In the Philippines, with American culinary influences going back to US domination of the islands at the beginning retains a strong bond with American trends. The famous chain McDonalds which is immensely popular with Filipinos, have a range of burger and chicken dishes often accompanied by plain steamed rice and/or french fries. Most popular of all with locals, the Philippines boasts its own burger-chain called Jollibee - which offers credible burger meals and chicken, including a signature burger called "The Big Champ". Patties made of ground beef are generally used in hamburgers. When other meats such as venison, bison, pork, chicken, turkey, or fish are used, the name of the burger generally changes accordingly, prefixed by the name of the meat source. Veggie burgers (alternately called a tofu burger, vegiburger or garden burger) use a meat substitute, or an assortment of vegetables, nuts or soy protein, which are ground up and mashed into patties) for the vegetarian and vegan consumer. Burgers with nonbeef patties are often marketed as more exotic than hamburgers or as being healthier than beef-patties. Because of the abundance of coconut in the country, the students of STI were inspired to create a veggie burger patty utilizing ubod or heart of coconut palm as the primary ingredient or as meat substitute. Ubod or heart of coconut palm, also called palm

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heart, palmito, burglar's thigh, is a vegetable harvested from the inner core and growing bud of coconut trees (Cocos nucifera). Heart of palm is often eaten in a salad, sometimes called "millionaire's salad".

1.2
made from ubod.

Statement of the Problem

The purpose of the study is to determine the feasibility of producing burger patties

Specifically, this study will seek answers to the following questions: 1.2.1 Marketing Aspect

1.2.2

What are the marketing strategies or plans that will be used to be able to penetrate a particular segment of the market?

How will ubod burger patties be promoted to target consumers?

How should ubod burger patties be distributed?

- What pricing strategy will be used for the proposed business? Operation and Technical Aspect

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What is the process involved in the production of burger patties made from ubod?

- Who will be the sources of materials? - What will be the required output of the workers?

1.2.3

What will be the optimum combination of inputs that will maximize output?

Organization and Management Aspect

What form of business organization will be adopted for the proposed business?

- What qualifications are needed for each position in the organization?

1.2.4

What are the duties and responsibilities of each member in the organization?

Financial Aspect

Who are the sources of capital for the proposed business?

- How much is the initial capitalization needed for the business?

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1.2.5

What is the profitability of operating a business engaged in the production of burger patty made from ubod in Cavite?

Social Aspect - How will the proposed business help the people in the community? - What is the economic impact of the proposed business in the society?

1.3

Objectives of the Study

This study will be conducted to evaluate the feasibility of operating a business engaged in the production burger patties made from ubod or heart of coconut palm.

Specifically, this study aims to:

1.3.2.1 Marketing Aspect

The proposed business will develop appropriate strategic marketing plans to be able to penetrate the target market. This will also discuss the promotional activities, distribution

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channels and pricing strategy that will be used to reach the target consumers. 1.3.2.2 Operation and Technical Aspect

This study will describe the process involved in the production of burger patties made from ubod. This will also determine the sources of materials needed in production, the required output of the workers, and the optimum combination of inputs that will maximize output.

1.3.2.3 Organization and Management Aspect

This study will describe the form of business organization that will be adopted for the proposed business, the qualifications needed for each position in the organization, and the responsibilities of each member in the organization.

1.3.2.4 Financial Aspect

This study will identify the sources of capital and the amount of initial capitalization needed for the proposed business. More importantly, this study will evaluate the profitability of operating a burger patty business made from ubod in Cavite.

1.3.2.5 Social Aspect

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The social impact of the proposed business in terms of helping the people in the community and the economic benefits that will be gained by our society will be presented in this study.

1.4

Significance of the Study

One of the most promising business ventures today is the food sector. It is for this reason that this study will be conducted, that is, to develop veggie burger patties made primarily from ubod or heart of coconut palm. This study could provide an idea and valuable information to would-be entrepreneurs who wish to engage in the food business. People who find this study a potential business could use the information contained in this study to engage in the business of producing vegetable burger patties made from ubod. In this study, entrepreneurs could find new ways of making vegetable patties using indigenous materials.

1.5

Scope and Delimitations

The business will be engaged in the production and sale of veggie burger patties made from ubod. The actual business launching will commence on March 2010. The product will be initially distributed to market vendors in selected upland areas of Cavite, namely: Indang, Tagaytay, Trece Martires City, Alfonso and Mendez. Once the market is established, the product will be marketed to vendors in other areas of Cavite.

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1.6 Definition of Terms: Hamburger (or simply burger) is a sandwich that consists of a cooked patty of ground meat that is fried, steamed, grilled, broiled, barbequed, seared or deep fried and is generally served with various garnish or condiments like ketchup, mustard, mayonnaise, lettuce, tomato, onion, relish and cheese toppings, placed inside a sliced bun, often baked specially for this purpose, or pieces of bread or toast. Patty is a disc-shaped, (round) serving of meat or meat substitutes. The meat or its substitute is ground and then packed and re-shaped to form round discs, cooked and eaten. They can be eaten a la carte, as a Salisbury steak, or in a hamburger, or, by some people, alone on a plate. Ubod burger patty is a veggie burger patty made from ubod or heart of palm, a meat substitute, and ground up and mashed into patties. Ubod or heart of palm is a vegetable harvested from the inner core and growing bud of coconut trees (Cocos nucifera). It consists of tightly packed, yellow-white immature leaves about the size of a person's forearm. It is only gathered from the topmost section of the coconut trunk, right up where the leaves were located. Cut from the plant, the heart is the main component of millionaire's salad. Veggie burger (or garden burger) uses a meat analogue, a meat substitute such as tofu, TVP, seitan (wheat gluten), quorn or an assortment of

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vegetables, ground up and mashed into patties. In this study, ubod or heart of palm will be utilized to create a burger patty.

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