A feasibility study on lumi-lite (Bright Ideas Incorporated)

In the Philippines, there are numerous producers of lamps. Despite their availability and diversity, lamps are a luxury that only a few can afford, since most of them are expensive. Seeing this opportunity to produce low-cost but high quality lamps. Bright Ideas Incorporated was formed. It is comprised of nine vibrant and creative young minds from De La Salle University, who commit themselves to serve its customers as a quality-leading manufacturer and marketer of specialty lamps. Their main product is a fiberglass lamp known as Lumi-lite. In order to determine the viability of the product, the proponents conducted a feasibility study, which deals with five major aspects, namely, its marketability, technicalities, legal and management, financial, and socio-economic. Fortunately, all five aspects showed favorable results at the end of the study. The market study is considered as the heart of the feasibility study, for this chapter indicated whether the product appealed to its target market. Conducting the survey served as the main highlight of the market study. The proponents got the response of people from various villages, townhouses, and condominiums located at the north and south of Metro Manila. After tabulating the answers, the proponents were happy to learn that 83.88% of its target market found the product appealing and unique. Because of this, they are willing to buy the product. The technical aspect dealt with the production of the Lumi-lite itself. The proponents used two methods in determining the more effective production process. These were the job shop method and the assembly line methods. After trying both methods, it turned out that the assembly line method proved to be more effective, in terms of minimizing the cycle time and costs. With the cycle time, the plant capacity is determined and resulted to a maximum capacity of 22 units, average capacity of 19 units and finally minimum capacity of 15 units. The legal and management study set the ways and means of attaining the objectives mentioned in Chapter 1 or the Introduction of the study. More specifically, the form of ownership was determined, and that is, for Bright Ideas Inc. to be a corporation composed of nine incorporators. It shall exist for nine months, beginning October 2000 until July 2001. The number of shares is set at 230 per member, with a par value of P 10.75. Each member shall subscribe P 2471.91. totaling to an authorized capital stock of P 22,247.22. The financial aspect of the business took quite a while to finish because several expenses had to be considered. However, the proponents were able to complete the chapter despite these troubles. The financial ratios are considered as the highlight of this aspect, since it determined the financial standing of the company. Specifically, these ratios are: Gross Profit Ratio, 26.54% ROS, 18.38% ROA, 63.57% ROE, 63.57%, and finally, ROI, 174.48%. The socio-economic aspect of the company is to gain social desirability of the product, Lumi-lite. They aim to contribute employment, alleviate the economic problems fo the country, extend help to the less fortunate members of the society, pay the right taxes, and finally, employ proper waste disposal with the materials of the product