CHAPTER 8

FINDINGS AND RECOMMENDATIONS

This chapter provides information about the feasibility findings of The House of
Mushrooms. It will tackle different functional areas of the business such as Marketing,
Operations, Management/HR, Financial and Corporate Social Responsibility.
In addition, this chapter will summarize and answer the objectives set by the researchers in the
beginning of the study. Moreover, it will show the recommendations of the researchers and
alternative strategies that can be done in the future feasibility studies of the same field.

I. FEASIBILITY FINDINGS
The researchers using the different business functions evaluated the feasibility of
establishing a mushroom farming business in Sitio Saup Project, Cangatba, Porac, Pampanga.
In setting-up the business the researchers undergo internal and external analysis to be able to
identify its strengths, weaknesses, opportunities and threats. Through analyzing the agricultural
industry the researchers were able to come-up with good strategies and be able to compete in
the market. In the field of marketing the business will be partnering with 3 burger restaurants
within Metro Manila that will give the business a fix monthly demand of its products. While in
Operations the business will get its supplies from the local suppliers to help local products and
promote the rich indigenous materials in our country. Thus, in the area of Human Resource and
Management, the business will make sure to behave ethically by providing the rightful wages to
the employees as well as give them the right benefits as mandated by the law.
Moreover, in the field of finance the business will ensure to comply to all the legal
requirements and their liabilities to be able to operate legally. In terms of profitability the
business minimizes its cost to be able to break-even their expenses and to generate income.
Furthermore, for the corporate social responsibility of the business it ensures to provide
programs that will address their internal and external stakeholders through providing the basic
rules and regulations mandated by the law as well as enhance Human Development through
the HOME Programs that promotes humanity, sustainability and environmentality.
After the months of research and study, the researchers were able to answer their
objectives through the following actions and plans:

1. The two major materials needed to cultivate fresh organic mushrooms are spawns and
substrate. Thus, the procedure in cultivating the mushroom varies per kind due to the
temperature requirement and span of growth.
2. The capital requirement in establishing a Mushroom Farming business will need an
estimated cost of Php 8,500,000.00 million. The capital requirement will suffice the preoperating and first year operation expenses of the business.
3. The profitability and growth of entering the field of agriculture specifically mushroom
farming shows good rates of return. The capital requirement is seen to be return at the
end of the 3 years projection period.
4. The applicable marketing strategies for the business are tradition and internet marketing.
The business will conduct traditional marketing because it is more personal and applying
to our target marketing. While in Internet marketing efficiently use readily available
resources such as technology.
5. The efficient manpower in conducting the efficiency of the business is 20 in all. Having
16 direct laborers who will be in charge in the mushroom cultivation and 2 officers who
6.

will assist the owners in monitoring the business.

The effective business structure for The House of Mushrooms will focus of four different
fields such as Operations, Marketing, Management/HR and Finance. Both owners will be

heading two departments to be able to efficiently manage the business.

7. The business will employ skilled workers from Cangatba, Porac, Pampanga where the
business will be situated to provide job opportunities as well as to efficiently make use of
the readily available laborers in the municipality.
8. The business will promote corporate social responsibility by behaving ethically and
through its HOME programs that promote humanity, sustainability and environmentality.
The researchers aimed to determine the profitability and feasibility of establishing a
mushroom cultivation business. Through the findings of the researchers during the study, they
were able to answer its objectives and respond to the business problems existing in the industry
were The House of Mushrooms would be entering. After the long process of research and study,
the researchers were able to identify the good opportunity in investing in a mushroom business
specifically in the mushroom cultivation business. It is shown that the percentage of profitability
in the business is high due to the demand in the market. With that businesses should pursue
investing in agricultural industry such as mushroom farming.
II. RECOMMENDATIONS FOR FURTHER STUDY

After gathering data and studying the feasibility of the mushroom farming business the
researcher were able to identify the positive profitability of the business, hence they still would
like to give recommendations for future improvement of the study. In terms of power of
suppliers, to be able to decrease the threat from suppliers, the future researchers should find
alternative or numerous suppliers for them to have lesser expense in their raw materials. Also
they could either formulate their own raw materials that will be used in the process of the
mushroom cultivation. The reason behind it is that during the study of the researchers they were
able to identify that the power of suppliers is relatively high to due the minimal number of readily
available suppliers for mushroom farming materials.
The researchers would also like to recommend a bigger space to establish their
mushroom plant for them to be able to produce bigger quantity of finish mushroom products
since there is a high demand in the country for mushroom products. Thus, they should also
consider the location of the plant by ensuring it is recommendable for farming and considered to
be a flood free area by NDRRMC in case of natural calamities that could affect the production of
the business in terms of distribution. In addition, the location should be accessible or near
expressway to decrease the delivery period to maintain the freshness and quality of the
mushroom products.
The procedure in mushroom cultivation plays a crucial role in the outcome of the finish
mushroom products. That is why the researchers would like to recommend for the future study
to make sure that they will focus on the operations of the business. Moreover, they need to
make sure that they are knowledgeable about the different process of mushroom cultivation, as
well as it is recommendable to focus on one specific kind of mushroom products.
Furthermore, the future researchers should be pro-active in planning for their to be able
to be ready in the upcoming problems and challenges that might arise. They should also do
both internal and external analysis for them to identify if it is favorable to pursue the business or
not. Thus, they should perform continuous research and study on the possible ways on how
mushrooms could be used in a beneficial ways. In conclusion, the researchers highly
recommend pursuing business in the agricultural sector since the Philippine is an agricultural
country that is rich in natural resources. In line with this mushroom cultivation in the country is

said to be a burgeoning business with huge profitability potential because of lower capital
requirement for small-scale business.