ESTABLISHING A CALAMANSI JUICE PRODUCTION IN ADVENTIST HOSPITAL

SANTIAGO CITY, INC.

A Project Feasibility Study

Presented to the

Graduate Business Department

Adventist University of the Philippines

In Partial Fulfillment

of the Requirements of the Course

Business Research with Feasibility Study

Master in Business Administration

Major in Hospital and Healthcare Management

THE PROBLEM AND ITS BACKGROUND

Nowadays, many people consume a wide variety of sweetened beverages such as soft

drinks, flavored juices, milk teas, and energy drinks. These drinks have become popular due to

their convenience, affordability, and appealing taste. However, their high sugar content has

raised health concerns (Vartanian et al., 2007). Despite these risks, the demand for sweetened

beverages continues to grow, especially among younger consumers and in urban areas.

The strengthening evidence that Sugar Sweetened Beverages (SSB) consumption is

causally associated with increased risk of developing health problems, such as weight gain and

obesity, Type 2 Diabetes Mellitus, tooth decay, and cardiovascular disease, coupled with rapid

increases and widespread high consumption of SSBs, has prompted calls to action by

governments from global public health organizations (Miller et al., 2020).

According to the International Diabetes Federation or IDF, the prevalence rate of diabetes

in Filipino adults is approximately 6.3%, out of 63 million adults in our country, almost 4 million

have diabetes. It was reported that 6% of all deaths in the Philippines occurred due to diabetes

(World Health Organization, 2016).

As an alternative to sweetened beverages, people are encouraged to choose healthier

drink options such as fresh fruit juices. These alternatives not only help reduce sugar intake but

also provide essential nutrients and health benefits. One excellent option is calamansi juice,

which is rich in vitamin C and antioxidants, making it a refreshing and nutritious choice.
 Calamondin (Citrofortunella microcarpa) fruits or locally known as “Kalamansi” is

widely cultivated in Philippines and is used as a condiment almost in every famous dish made in

the Philippines. Only the pulp was squeezed and is needed, the peels are just thrown away. It

belongs to the family Rutaceae. It is an intergenetic hybrid between a member of Citrus reticulata

or “tangerine” and “kumquat” or Fortunella japonica (Morte & Acero, 2017).

Calamansi is rich in vitamin C and known for its health benefits, including boosting

immunity and aiding digestion. It has gained popularity as a base ingredient for refreshing and

nutritious beverages. For many centuries, calamansi juice has been valued as one of the

healthiest and most consumed beverages, not only due to its high vitamin C content, but also its

distinctive aroma and taste (Cheong et al., 2012).

The Philippines is the only major producer of calamansi. It ranks as the fourth most

widely grown fruit crop in the Philippines, after banana, mango, and pineapple. It is primarily

grown for its juice extracts which are exported to the United States, Japan, South Korea, Canada,

and Hong Kong, among others (SEARCA, 2019).

This research aims to offer calamansi juice as an alternative healthy juice option to

consumers, specifically to patients and costumers of AHSCI. The new product will be produced

by the Health Foods department. With increasing awareness of the negative health effects of

sugary and artificial beverages, more people are seeking natural and nutritious drink alternatives.

This growing demand presents a valuable opportunity to introduce calamansi juice as a

refreshing, vitamin-rich option that supports a healthier lifestyle in addition with the existing

soya product in the health foods department.

Since its foundation, the Adventist Hospital Santiago City, Inc. (AHSCI) has served

many people in the region. Aside from its services, AHSCI offers healthy foods and beverages.
The hospital produces soya products such as tofu, soya milk and taho. It intends to establish its

calamansi juice production to cater the increased demand for natural juices.

Statement of the Problem

The central problem of this research is the viability and feasibility of establishing a

calamansi juice production in Adventist Hospital Santiago City, Inc., Santiago City, Isabela.

Objectives of the Stud

This study aims to provide timely and relevant information regarding the viability of

establishing calamansi juice production at Adventist Hospital Santiago City, Inc., Santiago City,

Isabela.

The specific objectives from the various functional areas of management are as follows:

Marketing Study

a. To describe and examine the market potentials of the product.

b. To understand the customers' demand and supply for the products.

c. To identify the proper target markets and potential customers.

d. To determine ways to promote and market the products.

Technical

a. To set-up the process flow of the business.

b. To determine the required machines, furniture and fixtures for an efficient production

process.

c. To study the production layout.

d. To determine the capacity and proper scheduling to fulfill customers’ demand.

e. To design a safe and clean environment in the production process.

f. To create quality controls in the different production stages.

a. To design the organizational set-up of the department.

c. To identify the required number of workers.

d. To formulate a compensation package for the workers.

e. To develop a training and capability enhancement plan for the workers

f. To develop mission, vision, key result areas, and objectives.

g. To analyze the business's strengths, weaknesses, opportunities, and threats.

h. To set strategic evaluation plans to review and improve the operations of the

proposed business.

i. To establish necessary steps before the implementation of the project.

j. To set contingency plans if the assumptions will not go as planned.

Financial Study

a. To formulate assumptions on financial statements that will help in the decision-

making process.

b. To estimate the total amount of investment to implement the project.

c. To project the returns on the investment after the preparation of financial statements.

d. To present the projected financial statements for the five-year operations.

e. To analyze and determine the financial returns of the business.

Socio-Economic Study

a. To develop plans that will preserve and protect the environment.

b. To evaluate the impact on the community and the stakeholders of the business.

c. To ensure that the business will have environmental sustainability.

Significance of the Study

To the researcher, this study is an opportunity to enhance research skills. Additionally,

the researcher can gain knowledge about the production industry which can be helpful during his

professional career. On the other hand, this study will serve as an academic requirement of the

course.

To the calamansi farmers, they will benefit by increasing income through supplying the

required raw materials for the production.

To Adventist Hospital Santiago City, Inc., this study will give them additional income

that the proposed business will generate.

To the Church, this proposed project will provide additional tithe remittance.

To the customers and the community, this study will give them information about the

health benefits of calamansi juice as a substitute to artificial drinks.

This research will benefit future researchers and can be a reference for business people in

the food production business.

Scope and Limitations

This feasibility study examines the profitability in establishing a calamansi juice

production in Adventist Hospital Santiago City, Inc. The researcher will survey the patients of

AHSCI to narrow the area of focus because of the limited time to complete the study.

The study will research the aspects of Marketing, Technical, Organizational and

Management, Financial, and Socio-Economic to achieve the objectives of the study. Also, the

study will cover the first five years of operations of the proposed business.

The researcher will conduct the study while working full-time, which may impact the

timeline for data collection, interviews, and site visits. Another barrier is the limited access to
information when conducting interviews with similar businesses because it includes trade

secrets.