A Feasibility Study on Customized Jeans and Retailing

In Partial Fulfillment

of the Requirements for

Management Services (BA 129)

Submitted to:

Professor Ma. Therese Agustin

Proponents:

EALA Inc.

Duron, Anna Belle T.

Feliciano, Earvin C.
Mortel, Ana Margarita A.
Sison, Llalaine T.

BA 129 TFX (Group 6)

19th of September 2006

I. Introduction
EALA Inc. is a collaboration of ideas, talents and hard work of Business
Administration majors from the University of the Philippines-Diliman. Disliking the
idea of working for others on a fixed schedule, they are advocates of
entrepreneurship who conceptualized their own business in order to become their
own bosses. Spotting an opportunity in the nature of the Philippine retailing industry
and conducting a series of strategic market skimming led to the idea of providing
customized jeans for the young Filipino adult.

Clothing in recent times has already become an expression of a lifestyle, while self
expression is a need that the young Filipino experiences upon entering college.
Through a lot of ways, and especially through dressing up, the young Filipino is
relentless in his pursuit to find ways to express his individuality. EALA Inc. aims to
capitalize on this fact, and in the growing desire of people to look good without
sacrificing comfort.

The young adult’s lifestyle is not sedentary – as he traverses through his youth, he
enters a world filled with new experiences and happenings. He makes new friends
and acquaintances, and with this, experiences new joys and miseries. As his
experiences increase and his network expands, his tastes and preferences evolve as
well.

With this knowledge, EALA Inc. has decided on bank on ways by which the target
market can express itself in limitless ways, given the assumed evolution of his
tastes. Through customized and tailored-to-fit jeans branded under PantSaloon,
the young Filipino adult has a new avenue by which he can convey his individuality.

PantSaloon is a boutique that adds a service dimension to the retailing of jeans

through customization and tailor-fitting. By giving the customers a chance to design
their jeans according to their every whim, while assuring them of its perfect fit,
PantSaloon will represent every young Filipino adult’s quest for self-expression,
individuality, adventure and freedom.

II. Board of Directors

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Duron, Anna Belle

Feliciano, Earvin

Mortel, Ana Margarita

Sison, Llalaine

Our Deepest Gratitude

To our family, for the unconditional love and understanding, and for being our
constant source of inspiration.

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Atty. Honorardo Mortel and Atty. Cristina Mortel
Mr. Lorenzo Sison Jr. and Mrs. Nenita Sison
Mr. and Mrs. Duron
Mr. and Mrs. Feliciano

You have raised four amazing, talented, hardworking, and persevering children.

To our cute and very supportive friends:

Anthony Meriel Garcia, proponent of En Cima Inc.
The proponents of Magnum Inc.
Katrina Cantos
Michelle Cipriano
Marisol Mendoza
Edlyn Shane Quidato
Raissa Villanueva
Maggie Atienza
Jhasper Reganit
Charisse Bernardo

Roanna Michelle Natividad

Joseph Frederick Monsada

VIKTOR and his cutie sales “men”

Wham! Burgers – Blue Ridge

Kenny Rogers - Katipunan
Starbucks - Katipunan

MMC Batch 06-A

CBA Batch 06

Aisa Ibrahim
Iskra Clavesillas
Jego Bolinao

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KC Decapia
KC Alfaro
Odenna Rios
Raymond Silva
Sushee Vilanueva
Mark Dendrix Bantigue
Daryl Allen Saddi
Mannix Chong
Johzen Barleta
Angela Caligner

Cyphrine Dalog
Rafael Marcos
Ricah Quindong

Wilmyna Descallar

KFC and McDonalds

BA Case Discussion Rooms and Back Lobby
Seattle’s Best - Katipunan
7-11 - Katipunan

Lee Dong-Wook and My Girl

The Podium
SM Megamall
LRT Monumento Station
And

God Almighty
for Your undying love.

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III. Certification of Non-Plagiarism
CERTIFICATION

This is to certify that no form of plagiarism has been done in the fulfillment of
this feasibility study for customized-jeans retailing company.

Rest assured that EALA Inc. has properly documented the sources of
information and cited the authors, titles and web sites wherein which these
information were based.

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 Should there be instances that similar words and ideas are not properly cited,
it would solely be because the group has never encountered them and is not aware
of its existence.

Signed the 19th day of September 2006, at the College of Business

Administration, University of the Philippines, Diliman, Quezon City.

Anna Belle T. Duron Earvin C. Feliciano

Ana Margarita A. Mortel Llalaine T. Sison

IV. Project Sponsors

MANAGING
1. Sunshine Ong
Statistician

Ms. Sunshine Ong, a BS Statistics graduate from the University of the Philippines-
Diliman, shall aid EALA Inc. in the development of a research instruments, selection
of a suitable sampling methods, and processing of relevant statistical data that the
business might need in the course of its operations.

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2. Arch. Joaquin Corpuz
Partner, JGC Architects

Architect Joaquin Corpuz graduated Cum Laude from the University of the
Philippines-Diliman, with a degree in Architecture. His knowledge in structural
design helped EALA Inc. complete its technical appraisal for PantSaloon.

FINANCIAL
1. Lorenzo Sison Jr.

Mr. Lorenzo Sison, a Certified Public Accountant, is the former branch accountant of
Phil Bank.

2. Leonila T. Amposta
VP for Operations, Bank of the Philippine Islands

An Economics graduate, Leonila T. Amposta has been in the banking industry for 30
years. Her work has landed her positions in banks like Far East Bank, Asian
Development Bank and Bank of South East Asia, before joining BPI as its VP for
operations.

3. Edilberto Marcos
Bank Manager, Philippine National Bank

Mr. Edilberto Marcos is a Certified Public Accountant and the Bank Manager of PNB
Meycauayan Branch. He has been with the company for more than 20 years, and is
the source of valuable information for loans.

OPERATIONS
1. Amor Cheng
Manager, Le Grand Tailoring Shop

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Ms. Chong is the shop manager of Le Grand Tailoring Shop. Her experience in
running a tailoring shop as well as her technical knowledge in the right equipment
to invest in helped PantSaloon in structuring its operations and finding the right
equipment for PantSaloon to invest in.

2. Dave Chong

Mr. Dave Chong is a professional graphics artist based in New York. His talent and
hard work has landed him jobs in the production designs of animated Hollywood
films such as X-Men, Star Wars and Monsters Inc. He is currently in the process of
starting up his own graphics design business. His expertise in this area shall be
helpful to EALA Inc. in updating and maintaining its software investments.

V. Articles of Incorporation of EALA Inc.

KNOW ALL PERSONS BY THESE PRESENTS:

The undersigned incorporators, all of legal age and are residents of the Philippines,
have this day voluntarily agreed to form a stock, private corporation under the laws
of the Republic of the Philippines.

And WE HEREBY CERTIFY:

FIRST: That the name of the said company shall be:

EALA, INC.

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SECOND: That the purpose for organizing this company is to observe and cultivate
the principles and values of entrepreneurship embodied in an association of
individuals whose dedication to service, hard work, and innovativeness led them to
establish a business that will thrive in the Philippine Garments Industry.

THIRD: That in order to fulfill this vision, the company shall commit itself to the
following objectives:
1. To establish a name and brand equity within the clothing business(es)
2. To establish a business that gains adequate market share over its life.
3. To meet the apparel demand of the target consumers;
4. To provide part time and full time employment;
5. To collect, invest and reinvest all money and income not immediately needed
and hold the same for the company’s future endeavors;
6. To buy, hold, sell, lease, exchange, mortgage, construct or acquire real and
personal property, or acquire interest in real or personal property, deemed
necessary for business administration and pursuit of the company’s aims and
purposes;
7. To organize and conduct any activity necessary for the purposes of the
company, and generally to perform all activities which are directly or
indirectly incidental to the attainment of the above objects.

FOURTH: That the principal office of the company is to be established in 33 P.

Burgos Street, corner G. del Pilar Street, West 10th Avenue, Caloocan City.

FIFTH: That the term of the company’s existence is fifty (50) years from the date of
incorporation, unless the law requires it to be sooner dissolved, in which case, the
remaining assets shall be disposed of and distributed to the remaining
incorporators.

SIXTH: That the names, nationalities, and residences of the incorporators of

the company are as follows:

NAME: Anna Belle Duron

NATIONALITY: Filipino

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 ADDRESS: 108 Emerald Street, Gloria 4 Subdivision, Pasong Tamo, Tandang
Sora, Quezon City

NAME: Earvin Feliciano

NATIONALITY: Filipino
ADDRESS: 2B Fernandez St. SFDM Quezon City, QC

NAME: Ana Margarita Mortel

NATIONALITY: Filipino
ADDRESS: 8 Pearl Street, BF Emapalico Homes, Las Pinas City

NAME: Llalaine Sison

NATIONALITY: Filipino
ADDRESS: 33 P. Burgos Street, corner G. del Pilar Street, West 10th Ave.,
Caloocan City

SEVENTH: That the initial members of the company are the incorporators and the
first trustees thereof. Additional members may be admitted, and their names shall
accordingly be submitted to the Securities and Exchange Commission. The initial
members’ contributions are the following:

Name: Contribution:
Anna Belle Duron Php 250,000
Earvin Feliciano Php 250,000
Ana Margarita Mortel Php 250,000
Llalaine Sison Php 250,000

EIGHTH: That Anna Belle Duron has been elected by the members as the Treasurer
of the company and will perform all the duties and responsibilities of the Treasurer
until her successor is duly qualified and elected in accordance with the by-laws.

IN WITNESS WHEREOF, we have hereunto signed these Articles of

Incorporation, this 19th day of September 2006 in Quezon City, Republic of the
Philippines.

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Anna Belle Duron Earvin Feliciano

Ana Margarita Mortel Llalaine Sison

VI. By-Laws of EALA, Inc.

Article I
OBJECTIVES AND PURPOSES
Section 1. The objectives and purposes of the company are those set forth in its
Articles of Incorporation and those generally governing corporations under the laws
of the Republic of the Philippines.

Article II
OFFICE
Section 1. The principal office of the EALA Inc. shall be located in West 10th
Avenue, Caloocan City

Article III
MEMBERSHIP
Section 1. The membership of the company shall be open to any natural persons
who are of legal age and residents of the Philippines for at least 6 years.

Section 2. A member is entitled to all the rights and privileges of membership.

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Section 3. The members of the company shall have the following duties and
responsibilities:
a. To comply with the policies, rules and regulations as set down in these
by laws by the Board of Trustees and General Assembly
b. To perform the obligations stipulated in the application for
membership, and other instruments required to be executed;
c. To attend meetings and participate in discussions;
d. To attend conferences and seminars, as may be required;
e. To participate and support the projects and activities of the company;
f. To comply with all other obligations as may be prescribed.

Section 4. The following are the rights and powers of the members of the
company;
a. To avail of its services and programs;
b. To receive regular publications and correspondences;
c. To participate in its projects, programs and activities;
d. To examine records of the company during business hours;
e. To enjoy all other privileges as may be provided for.

Section 5. Members in good standing are those who:

a. Have paid the required membership fee and the annual dues for the
preceding fiscal year;
b. Have not committed any form of violation to the rules and regulations
of the company, as stipulated in its by-laws;
c. Complied with the duties and responsibilities of a member.

Section 6. Only members in good standing are entitled to vote, be voted upon,
and remove the persons elected into office.

Article IV
THE GENERAL ASSEMBLY

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Section 1. The General Assembly shall be composed of all members in good
standing, duly assembled and constituting quorum.

Section 2. The General Assembly shall have the following powers and limitations;
a. To elect and remove, for cause, the members of the Board of Trustees;
b. To hear the reports of the Board, Executive Officers and Committees;
c. To determine the amendment(s) in the Articles of Incorporation and/or
these by – laws;
d. To exercise all the rights and privileges appurtenant to membership
expressly provided in the by-laws.

Section 3. The General Assembly shall meet once a year, every second Saturday
of January. The President of the company shall preside over all meetings of the
General Assembly.

Section 4. A special General Assembly may be called at any time by the Board or
by the President, upon receipt of a written petition from at least 15 percent of the
total members in good standing.

Section 5. The Secretary of the company shall notify each members of good
standing, in person or by mail, at least 15 days before the date of any annual or
special general assembly. In urgent cases, the notice may be communicated at
least five (5) days before the meeting, personally, or by telephone or telegram, if
contact is not possible.

Section 6. Quorum. At the annual or special general assembly, 20% of the

members in good standing shall constitute a quorum.

Section 7. Proxies. A member may appoint a co-member to act as his proxy at

any one or more specified meetings, provided such authority is in writing.

Section 8. Voting. Only members in good standing shall be entitled to vote.

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Section 9. Order of Business. The order of business at each General Assembly
shall be prepared by the Board of Trustees.

Section 10. Referendum. The Board may refer any matter for decision to the
General Assembly, through a written communication with the members. The board
shall set a deadline, If after the deadline, less than half of the members cast their
vote, the issue shall be settled by the Board of Trustees. Otherwise, votes of the
majority shall settle the matter.

Article V
THE BOARD OF TRUSTEES
Section 1. The direct and active administration of the company shall be exercised
by the Board of Trustees, which shall be its highest policy-making body. The
members of the Board shall be elected by the members in good standing, as
provided for in the preceding section, at the annual meeting or at any such special
meeting as may be called for the purpose.

Section 2. The regular members of the Board shall serve a term of two (2) years
but shall serve no more than two (2) consecutive terms. The term of office begins
on the day of election or appointment.

Section 3. To serve the unexpired portion of the term, vacancies in the Board shall
be filled in by the remaining members of the Board, as long as it has quorum.

Section 4. The Board shall form an ad-hoc Committee on Elections to hear and
determine questions and issues connected with the right to vote, count and
tabulate all votes to determine the result, do such acts as are proper to conduct the
election, and adopt election rules and procedures subject to the approval of the
Board of Trustees.

Section 5. The Board shall act for the company and shall have the following
duties and responsibilities:
a. To formulate policies, rules and regulations to govern the company;

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 b. To appoint or elect members of the Board and the executive officers as
provided for in these by-laws;
c. To act on any matter submitted to it by the executive officers;
d. To determine the work to be delegated to the Executive Committee;
e. To determine the volunteers and the areas of assignment as
recommended by the Executive Committee;
f. To act on cases regarding the application for or the resignation from or
suspension, expulsion or termination of membership;
g. To approve the annual program of activities;
h. To generate funds and approve the annual budget;
i. To submit to the General Assembly a consolidated report of the Board,
its officers, and committees including an annual report of its financial
condition;
j. To propose amendments to these by-laws;
k. To perform such other duties provided in these by-laws and those
which the General Assembly may direct from time to time as well as
those inherent to the Board for the efficient operation and
management of the company.

Section 6. Quorum. A simple majority of the members of the Board of Trustees

present in person shall constitute a quorum for the transaction of the business of
the Board.

Section 7. Proxy. In case of absence, any member of the Board may send a proxy
who must also be a member in good standing to represent him. But in no case shall
the proxy have voting rights.

Section 8. Board Meeting. The regular meetings of the Board shall be twice a
year, every second Saturday of January and every fourth Saturday of June of each
year.

Section 9. Special Board Meetings. The Board may hold special meetings when it
deems it necessary or as proposed by the Executive Committee.

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Section 10. Chairman of the Board. At the annual meeting of each year, or in
default of election at such a meeting, at any meeting duly called for that purpose,
the Board of Trustees shall elect a chairman from among themselves.

He shall preside at all meetings of the Board. He shall sustain an advisory relation
to the work and policies of the company together with such further relationship to
the company as the Board of Trustees may from time to time establish by
resolution.

Article VI
THE EXECUTIVE OFFICERS
Section 1. President. The President shall be elected by the Board of Trustees from
among themselves. Exercising general supervision over all activities of the
company as its Chief Executive Officer, the President shall have the following duties
and responsibilities:
a. To execute all resolutions and decisions of the Board of Trustees;
b. To preside the Board meetings and perform the Chairman’s functions in
the absence or disability of the Chairman of the Board until a new
Chairman shall have been elected;
c. To preside at meetings of the Executive Committee;
d. To sign for the company all deeds and other agreements; to co-sign
checks drawn against the funds of the company;
e. To appoint members of various committees with the approval of the
Board of Trustees;
f. To have control over all the employees of the company, supervise their
work and act as the ordinary medium of communication between the
Board and the staff;
g. To appoint and fix the compensation of the staff of the company except
those who in accordance to the schedule of positions are to be elected
or appointed by the Board;
h. To submit an annual report to the Board on the general condition of the
company;
i. To prepare the annual budget together with other long-term financial
plans for presentation of the Board;

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 j. To represent the company and liaise with outside offices and
organizations;
k. To perform such other functions as the Board may lawfully delegate to
him.

Section 2. Vice President. The Vice President, elected from the Board of Trustees
from among themselves, shall perform the duties of the President in the absence, or
the temporary disability of the latter; However, in the case of death, resignation, or
removal of the President, the Board of Trustees shall elect his/ her successor. The
Vice President shall have other powers and duties as may from time to time be
assigned to him/ her by the Board of Trustees or by the President.

Section 3. Secretary. The Secretary, appointed by the Board of Trustees from

among the members in good standing, shall take and keep the minutes of all
meetings, shall have custody of the corporate seal, shall notify trustees and
members of their meetings and shall, under the general discretion of the President,
prepare and present the business to be acted upon at meetings, shall certify to such
corporate acts, countersign corporate documents, or certificates and make reports
or statements as may be required of him or her by law or by government rules and
regulations, shall determine the existence of a quorum and the validity and effect of
proxies, and shall perform such other duties as may be assigned to him by the
President or by resolution duly adopted at any meeting.

Section 4. Treasurer. The Treasurer, appointed by the Board of Trustees from

among themselves, shall have the following duties and responsibilities, subject to
the provisions of the by-laws, and to such regulations as may from time to time
prescribed by the Board;
a. To have custody of the funds and securities of the company;
b. To take charge of the disbursement of its money, to co-sign checks
drawn against such funds and other commercial documents;
c. To accept monetary transactions deemed necessary and any other
receipts and shall deposit all funds of the company in such banks or
trust companies as may from time to time designated by the Board;

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 d. To make a report of the accounts for the last fiscal year at the annual
Board meeting, showing in detail the receipts and disbursements of the
company since his last report. The financial statements shall be
certified by an independent certified public accountant duly licensed to
practice in the Philippines;
e. To keep and maintain proper books of accounts and other necessary
records, showing at all times the financial affairs of the company, and
keeping said books and records open to inspection during business
hours by the trustees of the company;

Section 5. Officers, except for the President, shall hold office for a period of one
(1) year or until their successors shall be elected or appointed and shall have
qualified.

Article VII
THE EXECUTIVE COMMITTEE
Section 1. The Executive Committee (Execom) shall act in behalf of the Board of
Trustees when the Board is not in session. The President shall president over all
meetings of the Execom.

Section 2. The Execom shall be composed of the following Executive Officers and
senior staff of the company:
a. The President
b. The Secretary
c. The Treasurer
d. The Executive Director

Section 3. The Execom shall meet at least every quarter to act on any matter
submitted to it by its members, staff and Adhoc committees.

Article VIII
THE MANAGEMENT STAFF

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Section 1. The President shall appoint the members of the management staff and
fix their compensation and tenure. The staff shall exercise administrative functions
in their day-to-day management of the programs of the company.

Section 2. The Executive Director. The Executive Director shall be the Chief
Operating Officer of the Company and head of its Management Staff. Directly
responsible to the President, the Executive Director shall perform the following
functions:
a. Supervise and coordinate the work of all office staff in managing the
day-to-day activities of the Company;
b. Coordinate with the Board of Trustees, the Executive Committee and
the various committees in designing and developing policies and
programs of the Company;
c. Exercise over-all responsibility over the recruitment, training,
monitoring and evaluation of the service performance of the
employees;
d. Together with the President, represent the company and liaise with
outside offices and organizations;
e. Propose the annual operating budget and facilitate the disbursement of
operating funds;
f. Perform other duties inherent to the position and/or as determined by
the President.

Article IX
AD HOC COMMITTEES
Section 1. The Board of Trustees may, by resolution, provide for Ad Hoc
Committees and may delegate to such committees such powers as it shall deem
wide or appropriate. The President shall appoint the members of the committees.

Article X
FUNDS
Section 1. The funds of the company shall be derived from membership fees,
annual dues, gifts, donations, contributions, benefits and properties bequeathed
gratuitously to it by will or contract.

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Section 2. Withdrawal from the funds of the company shall be signed by the
President and the Treasurer or other signatories as designated by the Board.

Article XI
SEAL
Section 1. The seal of the company shall be in such form and design as may be
determined by the Board.

Article XII
FISCAL YEAR
Section 1. The fiscal year of the company shall start in January and end in
December of the same year.

Article XIII
AMENDMENTS
Section 1. These by-laws may be amended by a majority vote of the Board of
Trustees with the concurrence of two-thirds (2/3) members in good standing during
a General Assembly or by referendum.

Section 2. Any amendment approved shall be registered with the Securities and
Exchange Commission.

ADOPTED in Quezon City, Philippines this 15th day of September 2006 by the
undersigned members of the company in a special meeting duly held for the
purpose.

Anna Belle Duron Earvin Feliciano

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Ana Margarita Mortel Llalaine Sison

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