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TABLE OF CONTENTS

Page(s)

Title Page i

Acceptance and Approval ii

Approval and Endorsement iii

Abstract iv

Acknowledgement v

Table of Contents vi

CHAPTERS

I. INTRODUCTIONName of the Business Enterprise 2

Objective of the Study 3

Methodology 3

Scope and Limitation of the Study 3

Definition of Terms 3

II. EXECUTIVE SUMMARYDescription of the Project 4

Profile of the Entrepreneur 4

Project Contribution to the Economy 4

Summary of the Findings 5

Summary of Recommendation 5

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III. MARKETING PLANTarget Market 6

Past Demand and Supply 7

Projected Demand and Supply 8

Projected Price 9

Projected Annual Sales 11

IV. SUBDIVISION PLANTopographic Plan

Drainage Plan

Electrification and Water Utilities

Telephone Connection

Common Areas

V. ORGANIZATIONAL AND MANAGEMENT PLANForm of Business

Organizational Structure

VI. FINANCIAL PLANProjected Income Statement

Projected Balance Sheet

Projected Cash Flow

BreakEven Point

LIST OF TABLES:

Table 1: Past Demand, Supply and Gap

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Table 2: Projected Demand and Supply

Table 3: Projected Selling Price and Unit Cost

REFERENCES

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Chapter I

RATIONALE

Shelter has always been considered as a basic necessity in life. This is especially true for

us Filipinos. One of every Juans fondest dreams is to buy his dwelling and create a home for the

family. People usually will live the most part of their lives in their residences1, sometimes even

beyond the lifetime like when the house is bequeathed from the father to his child.

Generally, the house is the familys biggest investment. A residence can have two

components: the shelter component which is a basic necessity and the luxury aspect which is a

gauge of ones social standing and stature.2

This latter factor would largely depend on the kind of

environment where the house is located. A majority of families would regard as a critical factor

the kind of surrounding neighbourhood and community where their houses are placed; creating

an incentive for calm and stability.3

The abode, whether it is single detached or an apartment, is

considered the basic building block of the community. While community is defined as a

section of a city, primarily a residential area comprising of two to three miles across, the

neighbourhood would be the residential area with homogeneous characteristics.4

There are lot of factors to be taken into consideration when setting up a housing

development. The better the resulting development is, the higher a price the unit can command.

1Smith, Halbert C. And Corgel, John. Real Estate Perspectives: An Introduction to Real Estate, 2

ndedition (Richard

D. Irwin, Inc, 1987 and 1992), page 38622

Ibid.3

Ibid4

De Chiara, Joseph, Panero Julius and Zelnick, Martin, Time-Saver Standards for Housing and Residential

Development, 2nd

edition (Mc-Graw-Hill, Inc,1195. Page xi.

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Some of the factors to be considered are the land costs, building costs, operating and/or

maintenance expenses, taxes, insurance rates, and interest rates. Moreover, two essential

conditions that should be accounted for are location and planning. With respect with location, the

project should be situated where the demand for the same housing units are more or less assured;

its suitability as a development; accessibility and obsolescence possibilities. The planning aspect

deals with the design and construction in terms of open space, lawns and planting, light and air,

convenience and privacy.5

Put in another way, the manner of development of a certain property should be such that

would satisfy the demand or appeal to the buyers taste. For no matter how ideal the location of

the land is, if it will be addressed adequately the needs of a typical purchaser, nobody will give it

a glance.

Name of the Business Enterprise:

Our client, Ezza Loren Mae Legaspi, owns a parcel of land, covering more or less

eight hectares in Digos City. It is conveniently located at the intersection of two provincial

roads, both cemented. At present, a geodetic engineer is already in the process of finishing

the various layouts needed, including the subdivision plan, topographic plan, drainage plan,

etc. for the subdivision project. At the moment, the project is temporarily named

LEGASPIS HAVEN.

5Ibid

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This will be Ezzas first subdivision project. One aim of this study is to determine the steps

needed to complete the subdivision project. After which, these steps will be evaluated against the

prospect of entering into a joint venture project with a developer. To give more options for the buyer,

the latter can opt for a of lot only and house and lot package. In this way, a potential buyer can

opt to buy a lot now and create the house later or if he/she wants to reside there immediately,

then he/she can avail of the house and lot combination.

Objectives of the Research:

The objectives enumerated below will be the guidelines in conducting this research:

1. To know if the proposal is feasible, the best way to go about the subdivision project.2. To aid in the development of the community3. To generate funds or financing for the project4. To give additional employment to the community

Methodology:

The researchers will draft letters signed by the adviser and the Dean of College to be

given to the National Statistics Office for the population list of Digos City, which will be the

basis for the demand data and supply data will be sourced from the the Housing and Land Use

Regulatory Board. Additional data will come from the surrounding subdivisions in the same city.

Scope and Limitations of the Study:

The research is limited to Digos City, focused mainly on the subdivision projects.

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MARKET

The target market for this feasibility study must possess certain characteristics, namely,

being identifiable, sufficiency, stability and accessibility. Of these four (4) named, the third can

be considered as the least important for in this project, there is a definite number of lots to be

sold, Hence, there is a maximum number to the buyers needed. The sufficiency criterion, then, is

met if the number of purchasers equal the total number of lots to be sold.

The people who will be greatly attracted to this subdivision development are those

working professional Digos residents, married with or without children and do not have their

own homes yet. These employees, either employed by the government or the private sector,

would be ideal indeed for they can avail of the housing loan program of PAG-IBIG. Since it is

mandatory for both employees and employer to remit premium payments to the government,

then it is easier and cheaper for an average working man to avail of this facility. Even overseas

foreign workers who came from Digos City could be a target market for this project for they also

are required to pay their PAG-IBIG contributions.

In terms of accessibility, this would pose no problem for the target market are just

working in downtown Digos or in nearby towns. On how to reach these potential buyers, one

effective and efficient way would be to give out flyers. Another would be by putting up a stall,

for a limited time, in Gaisano Mall-Digos City. The latter mall is the biggest and newest mall in

Digos so most likely, a lot of people converge there for relaxation and shopping.

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With respect to competition, one thing good about this type of business is that the

developer can have almost full access to all data from the competitors. Why? This is because at

this time, these competitors have almost finished with their subdivision developments. So, it

would be easy to criticize and determine how to develop better.

In a way, in this set-up, it is relatively simple to create ones competitive advantage ,

defined as A superiority gained by an organization when it

can provide the same value as its competitorsbut at a lowerprice, or

can charge higherpricesby providing greater value through differentiation. Competitive

advantage results from matching core competencies to the opportunities.6

6http://www.businessdictionary.com/definition/competitive-advantage.html

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