Quezon Center for Research and StudiesInstitute of Management

Feasibility StudyJ-Print

Prepared by:Jessica M. Quirante

Adviser:Mr. Russel D. Palmaria

IntroductionHuman always find ways to express themselves. They engage in different activities to convey what they feel, show what they are, and give emphasis on what they want especially when they cannot utter the words for their views.Nowadays, one of the most popular techniques for self-expression comes in the form of printed shirts (http://wikipedia.org/wiki/T-shirt). Walking outside, people happen to see couples and groups of youth wearing similar shirts, students representing an organization, supporters of candidates for election, and the like. Most business used printed shirts to promote their products and services. T-shirts also serves as an instrument for the advocacy of religious groups and public welfare concerned organization. It creates an opportunity for future entrepreneurs and can be a source of income.Market analysisMarketing plays a vital role in the life of a business. Because sales depend largely on how business will carry out their marketing strategies. Business owners should always bear in mind the sayingCustomers are the blood of the business. Products must be introduced in a very effective way. In establishing a business, it is very important to take into consideration the kind of market the business will enter. One most considers the needs and demand of the people within the range of the market. Through its analysis, the preferences, way of living in the area, and the willingness of the people in buying products can be determined.There are different businesses in the market that exist according to customer needs. Mostly players in the market offer primary products sc as foods and clotting in various kinds. However, there are existing business which competes in offering similar products and prices.In this study, there are only two competitors existing in the market which provide almost the same products and services. However, the businesses as the chance to enter into the market because some areas in pagbilao are not get into by their services.Products descriptionThe proposed business will offer printing services on t-shirts, fans, towels, and umbrella. However, it will only accept printing on t-shirt with the materials provided by them.Although digital printing is a poplar printing technique used by the modern t-shirt printing business, the business will employ the traditional way of printing, the silk screen printing. Silk screen printing is a process which involves the construction of a screen and the se of stencil to apply the ink on the surface while digital printing is a process which makes use of a computer and printing machine to layout and print the design.T-shirt printing products are describe as seasonal and customized. Te orders commonly occur when there are events and celebrations in the market and products are created as specified by the customers requirements. Product designThe business will provide a compilation of designs from the internet, from the previously used designs, and from its artists designs. Customers will pick and choose the design to be printed on the fabric materials. However, they can settle their own designs which can be enhanced by the artists.Product FeaturesBrand name: J-Print For the potential customers to easily understand the nature of the business and recognize the products it offers, the proposed business will use the name J-Print. The J initial represents the name of the business proponent, J means Jessica and connotes that the proposed business is a printing service business which provide products just when they order.

PackagingAn eco-friendly paper bag printed with the business name will be used for the packaging of the printed t-shirts, fans and towels.

Product BenefitsJ-Print products are beneficial to the customers because of its functionality and durability; its products can be brought to different places and can be used for several times. They last longer through multiple wash cycles because of the se of the silk screen printing technique. Pricing StrategyGenerally, t-shirt printing business offers various prices for different kind of products. Pricing is based on the volume of orders, details of the designs, the turnover period, and the materials used.To determine the pricing of the products, this study will use the job order costing. Job order costing is a system used by business which produced specific orders or batches of items. The nits costs of products are determine through dividing the total expenditures for the products over the number of units produced. Since J-Print products are customized, this costing system is very much appropriate. It will make use of the job order cost sheet a record to monitor all the production costs charged to specific orders. It presents details such as the customers information, product description, and the quantity ordered, the start and completion of the production, and the materials, labor, and overhead applied during the production.The materials section includes to all items that become part of the product, the labor section pertain to the wage of the personnel who work directly on the product, and the overhead section are the costs incurred which do not fall under the material and labor.In this study, materials include the t-shirts and different kind of paint used in printing, labor are the wages of the artist/production workers, and printing overhead includes other printing materials, utilities and depreciation of printing equipment, furniture and tools. The printing overhead used in the computation of pricing is not the actual cost. A predetermined overhead rate based on the estimated annals costs is use to apply the cost of overhead printing job. To determine the overhead application rate, the proponents assumed that there will be an estimated annual overhead cost of P13, 000 and an estimated annual direct labor cost of P20,000. Overhead rate is computed as follows:Estimated printing overhead costs= php 13,000 = 65%Estimated Labor Costsphp 20,000As a result, 65% of labor cost will be charged t each job to find out the applied printing overhead illustration of job order in each order.

Promotional StrategyA strong set of promotional strategies are essential to attract customers. The proponents will use the following promotional strategies:

AdvertisementAdvertisement (such a short film or a written notice) is something that is shown or presented to the public to help sell a product or make an announcement. The business will distribute printed advertisement to the public s as tarpaulins, pamphlets and flyers.Social MediaAt present, social media are widely used, as part of its promotion; the business will create accounts on social networking sites where product offerings and available designs will be posted. The proponents believe that this strategy can reach more number of potential customers and will help establish a business-customer relationship without directly communication with them.DiscountsIt is a reduction to the basic price of goods or services. Tue business will give discounts to its loyal and regular customers and to those who makes bulk orders.Demand and supply Analysis One important factor to consider in the business feasibility study is the determination of the demand and supply for the proposed products or services in the market. Demand and supply is the idea of how many people want to by the goods and the services and the price of it depends in how mc of something is being sold. In this study, the proponent considered the demand and supply to ascertain the number of products to be produced and sold at given time.Products to be offered by the proposed business are not considered as the primary products or those belonging to the basic needs. In addition T-shirt printing products are regarded as seasonal products which are ordered occasionally. Because of these, proponent led to an assumption that its demand is lesser than the primary products and it will vary from time to time. Demographic environmentThe study will be conducted in pagbilao, Quezon wherein number of schools and institutions are located. Pagbilao is also considered as a spot for tourism because of its beautiful sceneries and beaches. For this reason, the business had the opportunity to attract greater number of potential customers. Technical analysisThis analysis deals with the description of the product, the printing process, business location, raw materials, equipment needed, utilities needed and waste disposal method. The proponent will apply the most important and best ways on how to improve the printing process and other business practices.The ProductJ-Print will offer printing services on fabric materials sing the silk-screen printing method. It will provide a compilation of designs where the customers can pick and choose to. An eco-friendly paper bag with its business printed will be used for the packaging of its product.Printing ProcessThe proposed business will use silk screen printing method in printing its products. Details of the process are as follows:

Step 1 design the print.Step 2 use a craft knife to cut out all the colored parts of the design.Keep the surrounding blank paper intact. Make sure the stencil fits appropriately ion the shirt.Step 3- Put the stencil on top of the material ( t-shirt, fans, towels, umbrellas) and the screen on top of the stencil.Place the stencil so the mesh is directly on top ( the two should be touching) and the handles are facing p. If there is space between the edges of the stencil and the edges of the screen, pt maskings tape on the underside. If the taping method was used, make sure not to tape the stencil to the mesh. Otherwise the stencil might move around when squeegee-ing it.Step 4 spoon out some paintMake a line at the top of the screen (the part furthest away from you). Try to spoon out as much paint as it world cover the stencil.Step 5 use the squeegee to spread the paint over the mesh.Try to do it with least number of strokes possible. This makes it look as smooth and professional as can be. Once the bottom is reached, keep going and scoop the excess paint up the handle to be reused.Step 6 Carefully lift everything up off the material.Step 7- Leave the material to dry.If the printing is done onto clothing, once it is dry, a sheet of greasing tracing paper should be put over the design before ironing.Production scheduleThere will be no constant schedule of printing for the proposed business. Printings of products are initiated from orders. The period of production does not easily determine due to the variation of volume and design. In view of this production, the business will apply the job order cost system.Job order system is a manufacturing system used by business that make special orders, customized products, or standard products produced in batches. This system is merely appropriate to apply in the production and pricing of t-shirt printing business.Business LocationOne important factor in putting up a business is its location. In choosing the location, the owner should look for a strategic place where large number of people can reach the business. The proponent decided to locate the business at sitio tabangan brgy, mapagong pagbilao, Quezon. The chosen location lies in the rural areas of pagbilao. However it is still accessible for the potential customers because its nearby barangays are surrounded with schools and business establishments.T-Shirt printing materialsBookstore location in the city proper of Lucena and stalls in divisoria will be the source of printing materials and t-shirts. To minimize the expenses, the business will create an improvised silk-screen by assembling organza and frame made from scrap woods.The business will settle a supplier network tie p system where the supplier will be called for reservation and delivery jest when the materials are needed. Thus, the business will turn to just-in-time inventory system to save money and reduce waste while meeting the customer requirements. Printing material needed is: Paint a colored substance that is spread over a surface and dries to leave a thin decorative or protective coating Green Film: A thin sheet, as of paper, metal, or impermeable film, with holes ct through in the shape of letters or designs se for creating the pattern for the design. Adhesol Solution a chemical used to attach the green film to the screen. Masking tape used to cover the part of the design which is not included in applying the colors. Cotton use with the adhesol solution to attach the green film to the screen. Brown Paper Bag use for packaging

Equipment, Furniture, tools, and SuppliesT-shirt printing business can start its operation in small capital requirements. For this reason, the business will only acquire equipment, furniture, and tools which are necessary to complete the printing activity. For printing proposes, it will purchase drafting table, blower, and some printing tools. For administration proposes, it will purchase office table and supplies. For the employees to work comfortably, electric fan and cleaning supplies will also be purchase.The mentioned equipment and supplies will be acquired in an appliance, furniture, bookstore and department stores in Lucena City. The owner will canvas for stores which offer durable products at a reasonable price.Tools and supplies needed are: Squeegee an implement, usually a rubber roller used to spread the paint and to remove excess water or ink. Organza a sheer, stiff fabric of silk or synthetic material use as a screen for the frame. Cutter a knife used for paper crafts etc. That has sharp, replaceable blade se to ct the design in the green film. Tucker - a hand held machine used to punch the organza on the wooden frame.

DescriptionQty unit priceAmounttotal

Equipment, Furniture and tools

Drafting table1 pc.3,5003,500

Office table1 pc.3,0003,000

Round plastic chair5 pcs.90450

Electric fan1 pc.1,2001,200

Blower2 pcs.450900

Tucker1 pc.875875

Cutter4 pcs.28112

Paint brush1 pack6565

Squeegee3 pcs.98294

hanger2 dozen4896

Monoblock Chair5 pcs.17085011,342

Production and Office Supplies

Pencil1 pc.4545

Spray2 pcs.50100

Organza & Wood5 pcs.95475

Calculator1 pc.250250

Tape Dispenser1 pc9595

Stapler1 pc105105

Carbon paper1 pack3535

Correction Tape2 pcs.2448

Staple wire1 box88

Scissors2 pcs.50100

Sharpener2 pcs.1020

Eraser2 pcs.1224

Log Book1 pc.4444

Clear book (long)1 pc6565

Glue1 pc.2525

Fluorescent lamp2 pcs.200400

Bulb1 pc.1001001,939

Cleaning Supplies

Broom2 pc.4080

Trash Can3 pcs.60180

Dust pan2 pcs.2448

Mop1 pc.120120

Rugs5 pcs.35175

Extension wire1 pc.110110713

Total13,994

DistributionThe general manager will contact the customer to pick p the orders however, customers with bulk orders will be given free delivery. The production worker will directly deliver the orders to the customer by hiring a tricycle.UtilitiesThe location of the business is an area where there is sufficient supply of electricity and water provided by MERALCO & NAWASA, respectively. These public utilities offer services in the area of Pagbilao.Waste Disposal MethodWaste management has been a big problem for the environment of certain localities. Most business do not have proper wastes disposal which become a problem for the local citizens.The management will practice and observe the cleanliness of the business area. Waste products from the operation will be disposed in the biodegradable & non-biodegradable container.Recyclable materials collected from the operation and office waste will be sold for extra income. There is a garbage truck roaming in the town and is scheduled in Brgy. Mapagong every Thursday.

Technological EnvironmentAt present, majority of business use technology in producing products and rendering service which gives good impressions to the customers. Since the proposed business will not be automated, it is not easy compete with others who are already established. As a consequence, the proponent will take the risk of entering into the market. Financial AspectOne of the most sensitive and complicated part of a business feasibility study is the financial aspect. This part gives hint to the business proponent of whether the project will be feasible and will earn profit in the long runThis chapter will provide the business capitalization, financial assumption, the preparations, of financial statement ( income statement, balance sheet, cash flow, and cost printing, t-shirt and materials) projected for five years, schedules and the break even analysis.CapitalizationBased on the estimated project cost, the proposed business requires an initial capital of P40, 000. It will be used for the acquisition of equipment, furniture, tools, and supplies. The business registration and the start-up operating expenses of the business.

Estimated Project CostLicenses and fees

Mayors PermitPhp 3,000

Barangay Business Permit 100

DTI Registration 500

Community Tax certificate 100

BIR 500

Miscellaneous fees 250Php 4,450

Acquisition of Equipment, Tools and Supplies

Equipment, Furniture & ToolsPhp 11,342

Production and Office Supplies1,939

Cleaning Supplies71313,994

Start-up operating expenses21,556

Total Estimated Project CostPhp 40,000

AssumptionsThe following are the assumptions made by the proponents to establish the projected financial statements of the business for its five year operation.1. The business will operate as a sole proprietorship and capital provided by its owner.2. Based on the estimated project cost, initial investment will be P40,000.3. The business will turn to Just-in-time Inventory system for the inventory of the printing material.4. Straight line method will be used in the depreciation of printing equipment and tools.5. The business will apply the job order costing system in its pricing and production.6. All sales are cash sales.7. Purchase of equipment, furniture, tools, printing materials and supplies are made on cash. J-PrintProjected Balance SheetAs of January 31(In Php)

Assets20152016201720182019

Cash198,494368,592564,616789,6041,045,980

Printing tools, Furniture and Equipment11,34211,34211,34211,34211,342

Less: Accumulated Depreciation 1,5283,0574,5855,2287,624

9,8148,2856,7575,2283,700

TOTAL ASSETS208,308376,878571,373794,8331,049,680

TOTAL LIABILITIES AND CAPITAL

Liabilities

Income Tax Payable29,57737,03745,38355,65368,150

Capital

Owners Capital40,000178,731339,841525,990739,180

Add: Net Income138,731161,110186,149213,190242,350

Total Capital178,731339,841525,990739,180981,530

TOTAL LIABILITIES AND CAPITAL208,308376,878571,373794,8331,049,680

J-PrintProjects Income StatementFor the period ended January 31(In Php)

20152016201720182019

Revenue (Sch1)

Less: Cost of T-shirts,405,000445,500490,050539,055592,961

Printing and materials100,590197,824207,515217,687228,363

Gross profit216,410247,677282,535321,368364,597

Less: Operating Expense

Salary (Sch9)36,00037,0805,5135,7886,078

Advertising5,0005,2504,5394,5854,631

Licensing and Fees4,5004,4952,7592,8142,871

Miscellaneous (Sch7)2,6522,7052,7592,8142,871

Total operating Expenses 48,10249,53051,00352,52554,097

Operating Income168,308198,147231,532268,843310,500

Less: Income Tax (Sch8) 29,57737,03745,38355,65368,150

Net Income 138,731161,110186,149213,190242,350

J-PrintProjected Cash FlowFor the period ended January 31(In Php)

20152016201720182019

Cash Balance, Feb. 1

Add: Receipts -198,494368,592564,616789,604

Revenues405,000445,500490,050539,055592,961

Initial investment40,000----

Total Cash Receipts445,000643,994858,6421,103,6711,382,565

Less: Disbursements

Equipment, Furniture, And Tools acquisition11,342----

Costs of t-shirts, Printing and Materials187,062196,295205,986216,158226,835

Operating expenses48,10279,10688,04097,908109,750

Total Disbursement246,506275,402294,026314,067336,585

Cash Balance, Jan. 31 198,494368,592564,616789,6041,045,980

J-PrintProjected Costs of T-Shirt, Printing and MaterialFor the period ended January 31(In Php)

20152016201720182019

Cost of t-shirts and materials (Sch2) 155,925163,721171,907180,503189,528

Wages (Sch3) 20,00021,00022,05023,15324,310

Printing Overhead

Other printing materials andSupplies (Sch4)5,1375,3495,6645,9476,244

Utilities (Sch6)6,0006,1806,3656,5566,753

Depreciation (Sch5)1,5281,5281,5281,5281,528

Total12,66513,10213,55714,03114,526

Cost of T-Shirts Printing and Materials188,590197,824207,515217,687228,363

Schedule 1 Sales

ProductPriceVolumeSales

Printing onlyPhp 45.002,000Php 90,000

Printing on fans, towels, Umbrellas4550022,500

Print with t-shirt 1951,500292,500

SalesPhp 405,000

In this study, prices on printing on t-shirt, fans, towels, umbrellas, are assumed to be the same because they apply similar printing materials and labor costs. Price on the print with t-shirts has an additional P150 for the cost of t-shirt and the mark-up.Pricing of products is based on the computation pointed up on Pricing Strategy. Although the business will apply the job order costing system on the actual practices, fixed pricing is established for the consistency of the study.On the demand analysis, the business arrived to an estimated combined nit sales of 4,000: 2,000 are allocated to prints on t-shirts. Sales are assumed to have an annual increase of 10 %.Schedule 2 Cost of T-shirt and MaterialsPaintT-Shirt

ProductVolumeTotal Cost Cost per unit Total Cost Cost per unit Cost of T-Shirt and materials Total Cost per unit

Printing Only 2,0003,1601.583,1601.58

Printing on Fans, Towels, umbrellas 5003950.793950.79

Print with t-shirts 1,5002,3701.58150,00100152,370101.58

Total4,0005,9253.95150,00100155,925103.95

Schedule 3 Labor (2 workers)Product

VolumeCost of LaborCost per unit

Printing only2,000Php 10,000Php 5.00

Printing on fans, towels, Umbrellas5002,5005.00

Print with t-shirts1,5007,5005.00

Total4,00010,000

The labor cost includes the wages of the 2 on-call artist/worker during the printing processes. Each will be paid P5 for every piece of products they finished.

Schedule 4 Other Printing Materials and SuppliesProductPaper PackMasking tapeAdhesol Green filmOrganza TotalCost per unit

Printing only2,00018211801602,3791.19

Printing on fans, Towels, Umbrellas50018211801608791.76

Print with t-shirts1,50018211801601,8791.25

Total4,00054635404805,1374.20

Other printing materials and supplies include hose which do not become part of the products but are actually needed for the completion of the printing process. The costs of other printing materials shown above are actual cost incurred during the production. Some of the printing supplies have the same cost in each product because these are only used once in the printing process.Schedule 5 Depreciation of printing equipment, furniture and toolsCostLife (in years)Annual Depreciation

Drafting TablePhp 3,50010Php 350

Office table3,00010300

Round chair450590

Mono block chair8505170

Electric fan1,2005150

Blower9008180

Tucker8755175

Cutter112522

Paint brush65513

Squeegee294559

Hanger96519

Total11,342Php 1,528

Schedule 6- utilitiesMonthlyAnnually

PowerPhp 300Php 3,600

Water2002,400

TotalPhp 5006,000

Schedule 7 MiscellaneousProduction and Office SuppliesPhp 1,939

Cleaning Supplies713

TotalPhp 2,652

Schedule 8 Income TaxAmount of Net Taxable Income

OverBut not overRate

P 10,000

P 10,000P 30,000P500 + 10% of the excess over P10, 001

P 30,000P 70,000P2, 500+15% of the excess over P30, 001

P 70,000P 140,000P8, 500+20% of the excess over P70,000

P 140,000P 250,000P22, 500+25% of the excess over P140,000

P 250,000P 500,000P50, 000+30% of the excess over P250,000

P 500,000P125, 000+32% of the excess over P500,000

In 2000 and onward

Computation of income tax is based on the individual income tax tableProvided by the Bureau of Internal Revenue (BIR).Schedule 9SalaryIncludes the P3, 000 monthly salary of the General Manager. It will have a 3% annual increase.AdvertisingAs stated in the marketing analysis of the study, the proposed business will used printed advertisement to promote its products. The business allotted P 5,000 for the estimated cost of advertisement for the first year of operation and its assumed to increase 5% every year.

Licenses and FeesIt compromises all the expenses which the business may incur for registration.Details are provided in the estimated project cost of the business.Equipment, Furniture and Tools AcquisitionBreakdown of these assets are indicated in the Technical Aspects of the study. The business will acquire the equipment, furniture, and tools for its first year of operation, and it is assumed to have no additional purchases for the following years.

Break-even AnalysisFixed CostsUtilitiesPhp 6,000Salary (General Manager) 36,000Depreciation 1,528Licenses and Fees 4,450 TotalPhp 47,978

ProductT-Shirts and MaterialsLaborOther printing materialsMisc.(Total cost/total production*no of production)Advertising (total cost/total production*no of production)Total Variable Cost

Printing only3,16010,0002,3791,3262,50019,365

Printing on fans, Towels, Umbrellas 3952,5008798793324,731

Print with t-shirts 152,3707,5001,8791,879995164,619

Variable Cost per unit

ProductVolume ProducedT-Shirts and MaterialsLaborOther printing materialsMisc.AdvertisingTotal Variable Cost per unit

Printing only2,0001.585.001.190.661.259.68

Printing on fans, Towels, Umbrellas 5000.795.001.760.661.259.46

Print with t-shirts 1,500101.585.001.250.661.25109.75

ProductSelling Priceunit variable Costunit contribution marginnumber of products

Printing onlyPhp 45.00Php 9.68Php 35.322,000

Printing on fans, Towels, Umbrellas 45.00Php 9.64 35.54500

Print with t-shirts 195.00Php 109.75 82.251500

Productnumber of products% of total

Printing only2,00050.00%

Printing on fans, Towels, Umbrellas 500.0012.50%

Print with t-shirts 1500.0037.50%

Total4,000100.00%

ProductContribution margin% of TotalWeighted contribution margin

Printing onlyPhp 35.3250.00%Php 17.66

Printing on fans, Towels, Umbrellas 35.5412.50% 4.44

Print with t-shirts 85.2537.50% 31.97

Weighted Average Contribution MarginPhp 54.07

BEP (units) Total Fixed CostPhp 47,978887Weighted AveragePhp 54.07Combined units saleContribution Margin

ProductBreak-even Sales% of totalsunit salesSales

Printing only88750%444Php 19,965

Printing on fans, Towels, Umbrellas88712.50%111 4,991

Print with t-shirts88737.50%33364,885

Total100%887Php 89,841

Proof:Printing OnlyPrinting on Fans, Towels, UmbrellasPrinting with T-ShirtsTotal

Sales

Printing Only (444 x P45)Php 19,965

Printing on Fans, Towels, Umbrellas (111 x P45)Php 4,991

Print with T-shirts (333 x P 195)Php 64,885Php 89,841

Less: Variable Cost

Printing Only (444 x P9.68)4,296

Printing on Fans, Towels, Umbrellas (111 x P9.46)

1,049

Print with T-shirts (333 x P 109.75)36,51741,862

Contribution MarginPhp 15,669Php 3,942Php 28,368Php 47,978

Less: Fixed Costs47,978

Operating Income Php -

The Business offers multiple product lines which have different selling prices, cost structures, and contribution margins. This, study used the break-even analysis for sales mix or the relative combination in which products are sold.Break-even point simply represents the number of nits the firm must sell to generate exactly zero net income to earn neither profit nor loss. It is the point where total revenues equal total costs.The break-even point computation showed that in order to earn profit the business needs to sell at least 887 combined nits of its products. To evaluate the results from the demand quantum. It shows that the projected volume by the product line exceeded the break-even point nits per sales mix. Therefore, the proponents can conclude that the business is feasible.Socio-Economic AspectEvery business is established to achieve certain goals. Some business focuses on competitiveness and pecuniary gain. They target to earn that, there are existing business whose aim is to provide the welfare of the people and improve their quality of living.Social ImplicationPeople in the community play a big role in sustaining the life of business. They serve as the potential customers who demand for the products of business which lead them on earning profit. Also, some of them become part of the business as employees. Without them there will be no sources of demand and no assistance to make the operation world. This, life of the business may end.The proposed business will work towards the social benefit through practicing environmental concern and social improvement. It will se an eco-friendly paper bag for the packaging and will observe waste management system. Through this, both the environment and the health of the people the community will be protected.In addition, the business aims to lessen employment problem in the community by giving jobs to those applicant who may not have finished their studies but have the willingness, experience, and the guts of an artist. Educational attainment will not be a hindrance to show their talents because everyone will be given the opportunity to be employed and be equally treated as an individual.Economic ImplicationEconomy and society are interconnected for economy comprises people who work for major production, consumption, and distribution of products and services. Benefits acquired by people in the community through various activities of business also benefit the economy.As the business promotes employment, it helps lessen the unemployment rate of the community and of the country. By paying proper amount of taxes, the business will help the government in providing budget for subsidies, infrastructures, public works, health, education, and the like. Customers will be assured of the quality of its products and services, and the fairness of its price offerings because it will comply with the legal requirements of different government bodies. Because it will establish a supplier network tie p system, the proposed business can help its supplier survive in the business world and provide assurance in earning profit.