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FEASIBILITY STUDY
PART 1
EXECUTIVE SUMMARY

Project Highlights

PROJECT HIGHLIGHTS
Name of Proposed Project Padre Pio Medical Center
Type of Business Organization Hospital
Location of Project Barangay Sto. Domingo Cainta, Rizal
Owner BSN 4y2 – 1 Group 51 - 2

REGISTRATION REQUIREMENTS FOR SOLE PROPRIETORSHIP

PLACE OF REQUIREMENTS FOR CERTIFICATE ISSUED

REGISTRATION REGISTRATION
DTI  2 valid ID’s  Certificate of registration of
 Filled DTI registration form Business Name (renewable
every 5 years)
City or Municipal  Accomplished Business Permit  Mayor’s permit and License
Mayor’s Office Application form to operate (renewable
 DTI-Business Name Certificate annually)
 Sketch of the business location
 Fire Safety Inspection Clearance
 Sanitary permit
 Barangay clearance
 Lease of contract
 2pcs 2X2 colored ID picture
 Registration fee
Bureau of Internal  DTI Certificate  BIR Registration Number
Revenue  Filled BIR form  Taxpayer’s Identification
Number
 Registration of books,
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invoices and official receipts

Social Security System  Filled SSS form  SSS Certificate of
 List of employees membership
 SSS employer ID
PhilHealth  Filled PhilHealth application  PhilHealth Certificate of
form membership
 List of employees  PhilHealth employer ID
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PART 2
HOSPITAL PROFILE
HOSPITAL NAME AND LOGO

HOSPITAL NAME

Padre Pio Medical Hospital is a Tertiary Hospital that caters patient’s cares and quality health
service specifically with orthopedic care cases.

HOSPITAL LOGO
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Mission Vision
Catholic Healthcare and our Sponsoring A vibrant, national health care system
known for service, chosen for clinical
Congregations are committed to furthering the excellence, standing in partnership with
patients, employees and physicians to improve
healing ministry of Jesus. We dedicate our the health of all communities served.

resources to:

•Delivering compassionate, high-quality,

affordable health services;

•Serving and advocating for our sisters and

brothers who are poor and disenfranchised; and

•Partnering with others in the community to

improve the quality of life.

MISSION AND VISION

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CORE VALUES

Capital

1 Billion Pesos (Php 1, 000, 000, 000).

Services Offered

• Cardiac:
– Rehabilitation
– Echocardiogram
– Electrocardiogram
– Event Monitor
– Holter Monitor
– Stress Testing

• Diagnostics:
– Arterial Blood Gasses
– Electroencephalogram
– EMG/NCV
– Pulmonary Function Tests
– Pulse Oximetry

• Injury Management
– Motor Vehicle Accidents
– Musculoskeletal Sprains & Strains
– Orthopedic Injuries
– Rheumatic Conditions
– Sports Injuries

• Diabetes Care:
– Outpatient Self-Management Program

• Industrial Management & Rehabilitation

– Back School
– Breath Alcohol Testing
– Drug Screen Collections
– CPR/First Aid Classes
– ER Room w/24 hour coverage
– Functional Capacity Evaluations
– Immunizations
– Physical& Occupational Therapy
– Pulmonary Function Testing
– Respiratory Fitness testing
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– Work Hardening Programs

Nursing Services:
– ER
– Employee Education
– Patient Family Education
– Employee Health
– Infection Control
– Medical/Surgical
– Outpatient Clinic
– Peri-Operative Care

• Radiology
– CT Scanning
– General Radiography
– Fluoroscopy
– Mammography
– MRI
– Ultrasound

• Health Promotion Services

– Community Education & Wellness
– Corporate Wellness

• Rehabilitation
– Neurological Deficits

• Stroke

• Brain Injury

• Neuropathy

• Vestibular Dysfunction
– Orthopedic

• Back/Neck Injuries

• Post Joint Replacement

• Post Arthroscopy

• Joint Dysfunction

• Respiratory Therapy
– Aerosol Therapy
– Bipap Therapy
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– Inpatient Education: Smoking Cessation

– Oxygen Therapy
– Treatments

• IPPB

• Handheld Nebulizer
– Ventilator Care

• Vascular
– Arterial Doppler
– Carotid Doppler
– Venous Doppler

Location

Barangay Sto. Domingo Cainta Rizal

Contact Person

Moises Edd O. Gangano

1505 Napico Manggahan , Pasig City
moisesganganoyahoo.com
09108529178
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PART 3
CONCLUSIONS TO FEASIBILITY

PROJECT FEASIBILITY

Management Aspect Summary

Since Metro Cyber Café is just starting in this business, the company adopted the Line

and Staff type of organization. The proponents come up with this because we found out that it is

more appropriate to use this type of organization. The democratic atmosphere will always

prevail in the business to ensure interpersonal relationship between management and

personnel.

Salaries are not extravagant but in line with the prevailing standard measurements set

by the labor department executed under the labor code of the Philippines.

Marketing Aspect Summary

As we saw the needs of the market to this kind of business, and for us to be able to

cater to their needs, we came up with this project. Through our market study we can easily

identify the feasibility of the project proposal.

Identifying the needs of the people in Manila, by putting this establishment is like

supplying the demand of the market. Computer services will be very much positive in offering a

lot of services to satisfy customer’s needs, accept suggestions and criticisms to improve our

business. Students in schools like Samson College of Science and Technology and a few steps

away from schools like San Sebastian College, Holy Spirit College, Centro Escolar University,

National Teachers College, San Beda College, V.Mapa High School are the company’s target

market while some professionals will be the secondary target market.

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We also considered some factors that may affect the buying motives of the company

like foreign exchange, population, price, etc.

Technical Aspect Summary

The final location of the business will be at 2108 Legarda corner San Rafael St., Quiapo

Manila. Through the series of studies that we have conducted we will make use of the latest

versions of computers to give us edge among our competitors. The business will engage in the

service of PLDT My DSL for fast internet connection and data security to maintain the

performance of the equipment. Two (2) Air Condition units and (2) Exhaust Fans will be installed

in the business premises. Suppliers of machineries and equipments are available so it will be

easy for the company to acquire these resources.

Financial Aspect Feasibility

The amount of nine hundred thousand pesos (Php 900,000.00) is substantial

enough to put up the proposed project. With this initial capital it will be able to purchase the

necessary equipment and pay its operating expenses. Based on the projections as depicted by

the financial statements, the proposed project is lucrative.

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PART 4
PROJECT OVERVIEW
Background of the Study

Technology nowadays plays a major role in our everyday life. From the moment

we reach our digital alarm clock in the morning until we turn off our lights at night. Filipinos are

in continuous contact with technology most especially in computers that have been introduced

and enhanced all over the world. As time goes by, computer technology is continuously

evolving into different variations depending on its usage. Then as to the present time, the

demand for computers is still arising. In the early years, computers are only being used by

companies, government agencies and some commercial establishments, but today, it is most

widely used in all fields and institutions because most of the activities are more involved in

technology.

Humble Beginnings In 1978, Amable R. Aguiluz V, fourth son and namesake of Amable

M. Aguiluz (1913-1977) who was former Auditor General during President Diosdado

Macapagal's administration, formed a distributorship in Manila for Computerland. The firm

became one of the main distributors in Manila for Apple Computers in the Philippines. It became

one of the venues by which advancements made in the computer science and technology were

absorbed in the Philippines industrial life. The computer boom originating in Silicon Valley

manifested itself in this undertaking. As for the other parts of the world, the growing trend in

the Philippines is towards computerization. However, the object conditions of the national

economy are still not totally suitable for this modern technology. The distributors had to find

ways of computers. The formula was simple: train programmers for wider distribution base. On

October 22, 1980, The Amable M. Aguiluz Institute of Computer Studies (AMAICS) was

established for said purpose. At that time when many people were not yet oriented to computer
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technology, AMAICS decided to educate the market. AMAICS was housed on the second floor of

David building along Shaw Boulevard. Six apple computers were initially used and eight trainees

were taken in for its short-term EDP courses. Six months after its inception, AMAICS started

offering the comprehensive Bachelor of Science in Computer Science program. In its first

semester, the Institute had a total of thirteen enrollees. It occupied the old site with the very

same number of computers. With a very small faculty and enrollment, history was drafted:

AMAICS became the first institution of learning to offer a comprehensive curriculum for the

country's future computer scientist

INDUSTRY ANALYSIS
OVERVIEW OF INDUSTRY

Number of Establishments

A total of 21,040 business establishments with total employment of 20% and up were
covered n the 2008 annual survey of Philippines Business Industry for the whole
Philippines.

 Manufacturing (sector D) establishment with 4,603 comprised almost one-

fourth or 21.9% of the total establishment

 Wholesale and Retail Trade (sector G) followed with 4,012 (19.1%)

establishments and Hotels and Restaurants with 2,947 or 14.0%

 Mining and Quarrying had the least with 49 (0.2%) establishments

(The figure shows the Percentage Distribution of Establishments by Sector)

Revenue and Value Added

The economy earned total revenue of PhP6.9 trillion during the survey period. Value
added was estimated at PhP2.1 trillion

 Manufacturing sector (sector D) generated the most revenue with PhP3.2

trillion (45.8%) revenue and generated value added of PhP816.5 billion

(39.6%)

 Wholesale and Retail Trade (sector G) ranked second with PhP1.1 trillion

(15.8%) revenue and value added of PhP121.4 billion (5.9%).

 Fishing (sector B) came last with PhP12.9 billion revenue (0.2%) and value

added of PhP3.0 billion (0.1%).

(Figure show Revenue and Value Added by Sector)

Graphical representations on how much does the computer services under manufacturing
and communication industry contribute to the government according to the annual survey of
Philippine business and industry conducted by the national statistics office.

SOURCE: NATIONAL STATISTICS OFFICE

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Part 5
MANAGEMENT ASPECT
Personnel Administration
Proposed number of personnel varies from the different work force needs of the

business establishment. The need for employees for Internet Cafe is not very intense. It only

requires two (2) GENERAL MANAGER who will facilitate the whole work force, two (2)

ADMINISTRATIVE PERSONNELS who will be assisting the customers once they have entered the

establishment and an IT SPECIALIST who will be in charge of maintaining the computers.

The purpose of knowing the work force need of the company is to give those

interested persons an opportunity to participate in achieving the company’s organizational

objectives and goals.

STAFFING REQUIREMENTS

1. Application Form provides information to enable the employer to make predictions

about aptitude, personality, and qualifications of the applicant.

2. Preliminary Interview provides general impression, the physical appearance of the

applicants, fitness, and speech.

3. Reference Investigation is the process of checking the NBI and police clearances as well

as investigation of the previous company for security purposes.

4. Employment and Examinations are conducted to measure the IQ and aptitude of the

applicants.

5. Final Interview is the in depth correlating with the examination date.

6. Hiring

7. Training

METRO CYBER CAFÉ

ORGANIZATIONAL CHART

General Manager (2)

 IT Specialists Administrative Administrative
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Attendant Attendant

Employees & Staffs Job Requirements and Functions

JOB REQUIREMENTS FUNCTIONS

 Male or Female  Supervise the overall

GENERAL 25 to 40 years old, Graduate of operation of the business.
any business-related course,  Oversees the overall
preferably management operations, marketing,
MANAGER  Must possess supervisory finance and legal affiliations
qualities of the company
 Must possess good  The direct representative of
administrative, human relation the company, capable of
and maintenance skills making sound decisions
 Must have good  Responsible in leading &
communication skills maintaining a productive,
 Must at least have 2 years of safe, cost-efficient and legal
experience in the same field workplace

IT  Male  Installing, maintaining, and

 25-40 years old repairing hardware and
SPECIALISTS  Must be a graduate of software are the general
Computer Technology tasks included in the job
 Preferably with related working description of a computer
course technician
 Must be honest and  Maintaining servers and
trustworthy network
 Technical support for
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software and hardware

issues
 Setting up and maintaining
backup system for in-office
desktop computers and file
servers
ADMINISTRATIVE  Male or Female  Assists the customers
 18 to 30 years old  Knowledgeable in computer
ATTENDANT  At least College Level troubleshooting
 Preferably with related working  Repairs and maintains
experience computer effectiveness
 Must be punctual  Respond to customers
 Good in multi-tasking inquiries, concerns and
 Sensitive to customer’s needs consultation
and wants  Maintain cleanliness and
 Must be honest and orderliness within the shop
trustworthy  Logging the customers hours
 Willing to work in shifting consumed
schedules  Count money in cash drawers
at the beginning of shifts to
ensure that amounts are
correct and that there is
adequate change
 Maintains inventory of
supplies in the shop

Working Hours and Schedule

GENERAL MANAGER
Working Hours SHIFTING SCHEDULES TIME Break Time Rest Day
30 minutes Sunday
8 Hrs First Shift 6 am – 2 pm
(with pay)
30 minutes Sunday
8 Hrs Second Shift 2 pm – 10 pm
(with pay)
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ADMINISTRATIVE ATTENDANT
Working Hours SHIFTING SCHEDULES TIME Break Time Rest Day
30 minutes Sunday
8 Hrs First Shift 6 am – 2 pm
(with pay)
30 minutes Sunday
8 Hrs Second Shift 2 pm – 10 pm
(with pay)

IT SPECIALIST
Working Hours SCHEDULE TIME Break Time Rest Day
8 Hrs Monday and Tuesday 6 am – 2 pm 30 minutes Wednesday
(with pay) to Sunday

Proposed working days will be from Mondays to Saturdays, Sundays will serve as their

rest day. All employees are entitled to fringe benefits such as SSS and PhilHealth. In case an

employee will not be able to come on his/her duty, the employee that was present during that

situation will be obliged to take over yet he will receive an overtime payment.
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Proposed Salary Rates

(Monthly Compensation Scheme)

Deductions
employees

PhilHealth

Deduction
Monthly

Salary
No. of

Salary

Total
Basic

Tax
SSS
Position

General Manager I 1 15,000.00 500.00 375.00 1533.33 2,408.33 12,591.67

General Manager II 1 15,000.00 500.00 375.00 1533.33 2,408.33 12,591.67
IT Specialist I 1 10,000.00 333.30 250.00 0 583.30 9,416.70
Administrative Staff I 1 10,504.00 350.00 250.00 0 600.00 9,904.00
Administrative Staff II 1 10,504.00 350.00 250.00 0 600.00 9,904.00
Total 5 61,008.00 2,033.30 1,500.00 3,066.66 6,599.96 54,408.04
Note: The table above shows the monthly basic salaries and the fringe benefits of each employee that were deducted
from his total salary. This includes the 26 working days excluding rest day which is Sunday.

BENEFITS

1. Salary 5. Philhealth

2. 13th Month Pay 6. SSS

3. Maternity leave 7. Uniform (see Appendix A)

4. Paternity Leave

COMPUTATION:

General Manager

72.12 576.93 15000

x 8 hrs .= x 26 days=
per hour per day per month

IT Specialist

156.25 1250 10000

x 8 hrs.= x 8 days=
per hour per day per month

Administrative Staff

50.50 404 10504

x 8 hrs .= x 26 days=
per hour per day per month
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Management Proposal
Metro Cyber Café doesn’t need to have many bosses, so it will engage to a Line and Staff

Type of Organization because it is one of the most commonly used style of management by

firms. Simplified Management controls like division of work may be applied to make the work

more efficient and productive since there is a limited executive knowledge in the operations of

the business.

Metro Cyber Café will adapt the Japanese management style proposed by William

Ouchi which is also known as Theory Z, this management style focused on increasing job loyalty

by providing a 6 months renewable contract which will give them a long term job with a strong

focus on the well-being of the employee, both on and off the job. Also this management style

tends to promote stable employment, high productivity, and high employee morale and

satisfaction.

Metro Cyber Café Organizational Rules and Regulation

Relating to customer:
1. Keep in mind, CUSTOMER IS ALWAYS FIRST, don’t argue with them give what they want

as long as it is part of the business operations, if there still difficulties in particular

situation report immediately to your general manager.

2. Respect all customers regardless of gender, status and appearance.

Relating to Employees:
1. Avoid being AWOL (Absence Without Official Leave)

2. Don’t be late. (Preferably half hour advance before the duty)

3. Employees are not allowed to enter the establishment wearing incomplete uniform.

4. Employees are not allowed to leave his or her job without turn-over after duty.
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5. Any acts of robbery are strictly prohibited by the establishment.

6. Any action or malicious intent, including bad words, etc. is prohibited.

7. Always greet customers with the smile.

8. The staff must be aware of the proper standard operating procedure during

work in the establishment.

9. Always observe cleanliness and does Clean As You GO (CAYGO).

Gantt chart

Activity July Aug Sept Oct Nov Dec Jan

Feasibility
Putting up of

capital
Registration
Installation of

equipment and

machineries
Hiring of Personnel
Briefing and

Orientation of

employees
Promotional

Advertisement
Start of operation
Part 6
MARKETING ASPECT
GENERAL MARKET DESCRIPTION

Target Market
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Metro Cyber Café’s market is based on the strategic location that we have

chosen. The company’s target market will be college students around the vicinity and

the secondary target market will be professionals working in the public and private

sectors that belong to the Philippine social class structure C and D because they are

known for their capabilities in patronizing the service. The age range is from 18 years

old and up regardless of the gender. Users are influenced by their friends and by the

students which include the upper and lower class.

Macro environment

This diagram shows how external

environment affect the company.

Social Environment

This factor includes forces that may affect the society’s value perceptions, preferences

and behaviors. It is important to understand what is going on in the social and cultural

environment because our perceptions and behaviors are constantly changing. These factors are

about the changes in the latest trends that would affect the demand for the company’s services.
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Economic Factors

It refers to the variable such as interest rates, taxation, economic growth, exchange

rates and inflation which may affect the cost and production of the company. Therefore, it plays

a significant role in determining the likely demand for products and services.

Political/Legal Environment

This is related to the legality of the operation of the company. This is important to

managers, particularly to those who are involved with the marketing function. Managers

themselves may be convicted for certain legal violation like price fixings.

Technological Factor

This refers to the new gadget creations and processes. Every new technology is a force

for creative destruction” for it replaces an older one. Change in technology may affect the

demand for firm’s product and services because as technology changes, consumer buying

patterns will also change. Thus it creates new opportunities for the firm or other threatens its

survival in the industry.

Market Analysis
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SOURCE: Association of Training Institutions for Foreign Trade in Asia

and the Pacific (ATIFTAP)

This table shows the view of services done by IBM last 2008 through survey.

This graphical representation of profit against revenues indicates that computer related

services are profitable to the proprietor.

Also the proponents looked for a commercial space along Mendiola and found it

more strategic locating the establishment to San Rafael St. San Miguel, Manila, where

students who are in need of the services are plenty. Metro Cyber Café is to be

established beside Samson College of Science and Technology which is few steps away

from other schools like San Sebastian College, Holy Spirit College, Centro Escolar

University, National Teachers College, San Beda College, and Victorino Mapa High

School.
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Market Size
The market size of Metro Cyber Café has been evaluated based on population of

the market and on potential sales where the services which will be expanded. The

information sources for determining market size are the Consumer Survey and some

government data.

Demand
DEMAND SITUATION OF THE MARKET FOR THE CURRENT YEAR

UNIVERSITY Population Percentage of Percentage of Percentage of Market

of Students consumers who consumers who consumers Size
always visit a occasionally visit who never
comp shop a comp shop visits comp
based on based on survey shop based
survey on survey
Centro Escolar 13799 50% 50% 0% 6,899.5
University
San Sebastian College 3340 12% 84% 4% 400.8
– Recoletos
National Teacher’s 3903 40% 58% 2% 1,561.2
College
V. Mapa High School 4419 50% 50% 0% 2,209.5

San Beda 5253 58% 42% 0% 3,046.74

Samson College of 660 48% 46% 6% 316.8
Science and
Technology
TOTAL 14,434.54

Note: CEU admits 15,000 students per year and 14,407 students is estimated to graduate per year
San Sebastian - Recoletos admits 3,500 students per year and 3,408 students is estimated to
graduate per year
NTC admits 4000 students per year and 3,733 students is estimated to graduate per year
V. Mapa admits 4,500 students per year and 831 students is estimated to graduate per
year
San Beda admits 5,500 students per year and 5,253 students is estimated to graduate
per year
Samson admits 350 students per year and 330 students is estimated to graduate per
year

Assumption: Each customer rents for an hour

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Source:
Commission on Higher Education and Department of Education for
the student’s population
DEMAND FOR INTERNET CAFE – YEAR 1
Figures were derived from the consumer survey that we have
conducted.
UNIVERSITY X P A B DEMAND
CEU 6899.5 50% 15,000 14,407 7,196
SAN 400.8 12% 3,500 3,408 411.84
SEBASTIAN –
RECOLETOS
NTC 1561.2 40% 4,000 3,733 1,668
V.MAPA 2209.5 50% 4,500 831 4,044
SAN BEDA 3046.74 58% 5,500 5,253 3,190
SAMSON 316.8 48% 350 330 326.4
TOTAL 16,836.24
Formula used:

d=x+[p(a-b)]

Where: d = demand for current year

X = demand for previous year A = number of students admitted

P = % of computer renters B = number of estimate graduates per year

Source:
Commission on Higher Education and Department of Education for the student’s population
Figures were derived from the consumer survey that we have conducted.

Comparison of demand of Internet Cafe for the first year and the Current Year

UNIVERSITY MARKET DEMAND FOR THE YEAR 1

CURRENT YEAR
CEU 6899.5 7,196
SAN SEBASTIAN – RECOLETOS 400.8 411.84
NTC 1561.2 1,668
V.MAPA 2209.5 4,044
SAN BEDA 3046.74 3,190
SAMSON 316.8 326.4
TOTAL 14,434.54 (see Table) 16,836.24
Assumption: Each customer rents for an hour

MARKET GROWTH RATE

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Rate of Demand increase

R = [dtYear1-dtbase year]

dt base year

= 16,836.24 - 14,434.54

14,434.54

= 2,401.7

14,434.54

= 0.16638563

R = 16.63%

Rate of Increase in Demand for Computer Shop yearly

DEMAND FORECAST FOR 5 YEARS

YEAR
1 2 3 4 5
16,836.24 19,63 22,901 26,709 31,151
6
Note: Rate of increase is 16.63%

FORMULA:
Demand Situation includes overall demand for Internet Cafes.
DF = dt year1 x rate of increase + dt n
Competitor Market Share Total Demand
Dk and Dk 21.13% 3557.497512
Net Quest 6.70% 1128.02808
Anchor Blue Internet Café 9.80% 1649.95152
Leroj’s Internet Cafe 25.26% 4252.834224
Geegz Point 3.09% will be the
6.70%increase of MCC yearly 1128.02808
Tricia’s Computer Shop
Supply 6.70% 1128.02808
Next Fusion 5.15% 867.06636
Supply
Metro Situation
Cyber Café 18.56% 3124.806144
TOTAL DEMAND 100.00% 16836.24
GEOGRAPHICAL SOURCES
COMPETITORS No. of PC Market Share
DK and DK 41 25.95% FORMULA:
Net Quest 13 8.23%
Anchor Blue Internet Café 19 12.03% Total number of PC units/100=N
N=1%
Number of PC/N=market share
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Leroj’s Internet Café 49 31.1%

Geegz Point 13 8.23%
Tricia’s Computer Shop 13 8.23%
Next Fusion 10 6.33%
GEOGRAPHICAL SOURCES
COMPETITORS No. of PC Market Share
DK and DK 41 21.13%
Net Quest 13 6.70%
Anchor Blue Internet Café 19 9.8%
Leroj’s Internet Café 49 25.26%
Geegz Point 13 6.70%
Tricia’s Computer Shop 13 6.70%
Next Fusion 10 5.15%
Metro Cyber Café 36 18.56%

Market Share

Dk and Dk
18.56% 21.13% Net Quest
5.15% Anchor Blue Internet Café
6.70% Leroj's Internet Café
6.70% Geegz Point
6.70% 9.80% Tricia's Computer Shop
25.26%
Next Fusion
Metro Cyber Café

SOURCE:

Total market share was derived based on the consumer survey.

Marketing Program

Competitiveness on the quality of the services

The high quality of equipment will prove and show that the service of

our Metro Cyber Café is very competitive in today’s technology. The company’s

service will provide the fastest and the easiest way in providing information and
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26

effective means of communication in different areas of the world. It will also

provide the computer games particularly those network games which are latest

to market.

Marketing Mix

General Marketing Practices

Pricing Strategy

Metro Cyber Café will adapt penetration pricing strategy. The company will set

a relatively reasonable price for the service, to attract more customers promotions will be

implemented to increase sales.

SWOT Analysis
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SWOT analysis based on the study conducted in the area.

Strength Opportunities

- Customer oriented service offered - Possible business and market

- High speed computer service expansion

- Strategic store location - Knowledge on the newest trend on

technology
Weakness Threats

- Requires full attention for - Unstable economic status

maintenance of computers - Weather condition

- Some parts of computers are - Peak and lean season may cause

expensive changes in demand

- Some softwares are expensive - Competitors are well known

Marketing Strategy

Sales promotion will be the most appropriate for the proposed project. Below

are listed proposed marketing programs.

Proposed Marketing Program

Opening Promo
On the first week of operation, the first ten (10) customers are entitled for the

free 30-minute computer usage.

Daily Promotional Strategy

CASH DISCOUNTS AND ALLOWANCES

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For every three (3) hours customer will only pay the amount of

Php 50.00* considering that an hour cost twenty pesos.

*discount is valid from 9am – 12pm

Long term promotional Strategy

MEMBERSHIP OR LOYALTY CARD (see APPENDIX B)

Membership or Loyalty Card will cost Php 50.00 which entitles a

card holder for:

 18 pesos per hour rate inclusive of gaming, surfing and typing jobs.

 10% discount in printing, fax, scanning and CD Burn.

“POINT SYSTEM” concept will also serve as an assurance to our customer

that the money they spend for renting will be returned through points.

For every ten (10) points* card holder are entitled for a free hour of

computer usage.

2 hours = 1 point, 4 hours = 2 points and so on…

Factors Affecting the Target Market

There are factors that may affect the market perceptions, ideas and other market

decision which will cause Metro Cyber Café not to earn. Some of these are:

FOREIGN EXCHANGE

Our currency is mainly affected by economic and political conditions such as

interest rate, GDP, unemployment rate, inflation, and political stability. The management must

be always aware of the constant changes that might happen in foreign exchange.

POPULATION
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The market shows different types of dynamics from markets dominated by one

or few products to markets with continuous penetration of new and existing products or

services. Some customer would prefer new products or services and some may not.

PRICE

Strategic goals influence pricing. Businesses might consider a changing price if

the demand for the services are increasing or decreasing.

COMPETITION

Competition doesn’t just mean products or services are exactly like your idea.

Entering a new market would not be easy because competition already exists. So competitors

must plan a good sales promotion for them to satisfy the market and survive in the said field.

WEATHER CONDITION

As we know, the climate in the country is very much inconsistent and we never

know what might happen in time. This may cause the business not to earn because the target

market might prefer to stay at home rather than to hang-out outdoors.

Part 7

PRODUCTION OR TECHNICAL ASPECT

Service Description

Metro Cyber Café provides computer services for researching and gaming. We

will provide fast internet access for surfing and chatting through electronic mails, and typing of

documents through Microsoft offices. Customers may use other popular applications for games

such as DOTA, Counterstrike, cabal and others may install upon request.

We also offer black and colored printing, scanning, file transferring and pay phone services.
 30

We will use tarpaulins to inform the target market about our newly open establishment

which will include the services we offer.

The price of the services that the business offers vary based on the survey about

competitors that was conducted in the area of San Miguel.

SERVICES OFFERED PRICE

Basic Computer Service Php 20.00 / hour
Document Printing
Black Php 2.00 / page – short
Php 3.00 / page – long

Colored Php 5 / page – minimum

Scanning Php 10 / scan
Pay Phone Php 5.00 / 3 mins.
File Transfer
Documents Php 5.00 / document
Video Php 10.00 / video

System and Forms Design

STANDARD OPERATING PROCEDURES

OPENING PROCEDURES

1. General Manager will be in charge of handling the keys so he or

she must open the shop at 6 o’clock in the morning.

2. Administrative staff must turn on the server and ROUTER.

3. Administrative staff must check computer parts and accessories.

OPERATING PROCEDURES
 31

1. Once the customer has entered the business premises the

administrative attendant should assist the customer and ask the

service that the customer wants to avail of.

2. Ask the customer to stay at the lobby just in case there is no

available unit to be used.

3. For:

3.1 COMPUTER SERVICE

3.1.1. Ask the customer the section he wants to use. If

research or games.

3.1.2. Look for vacant unit and direct the customer to go

to the vacant unit. Just in case there is no available unit

ask the customer to stay at the lobby until called.

3.1.3. Attendant will turn on the timer on the server for

that customer.

3.1.4. After the customer has log off the unit. The

customer will pay to the counter and exit the café

3.2. DOCUMENT PRINTING

3.2.1. Customer will be asked for the source of the file.

3.2.2. Customer will be asked for the number of copies to

be printed.

3.2.3. The administrative staff will now print the file and

give the receipt to the customer

 32

3.2.4. Customer will pay and exit the café

3.3 FILE TRANSFER

3.3.1. Customer will be asked for the source of the file.

3.3.2. The administrative staff will now start the

transferring of files.

3.3.3. The administrative staff will now transfer the file

and give the receipt to the customer

3.3.4. Customer will pay and exit the café

3.4 PAY PHONE

3.4.1 The customer will be asked to dial the phone number

3.4.2 The customer will hang and return the handset

3.4.3 Customer will pay and exit the café

3.5 SCANNING

3.5.1 The administrative staff will ask the customer to give

the file to be scanned

3.5.2 The administrative staff will ask the customer if the

customer wants to save the file or have it printed.

3.5.3 Customer will pay and exit the café

CLOSING PROCEDURES

1. The General Manager will send a financial report to the owner.

 33

2. The Administrative staff will clean the shop and check if there are

missing peripherals.

3. The Administrative staff will shut down the computers.

4. The Administrative staff will unplug the socket.

5. The General Manager will lock the doors.

MAINTENANCE PROCEDURES

1. The IT Specialist will check for viruses.

2. The IT Specialist will update versions of some applications.

3. The IT Specialist will check for peripherals that should be changed.

The Customer enters “Metro Cyber Cafe”

Is the attendant assisting another customer?

Yes
OPERATIONAL FLOW The Customer will be asked to stay at the lobby or waiting area
CHART

No

The Customer will be asked about the service he wants to avail of

Computer Rental Document Printing File Transfer Pay Phone Scanning

The customer will be asked if what section he wants to use . Theofcustomer

The customer will be asked the source the file will be asked thecustomer
The source of will
the be
file(s)
asked
The to dial the
customer willphone number
be asked to give the file/ photo to be s
 Gamers Zone Researchers Zone

What the customer want to do to his file?

34
No will be asked to stay at the lobby or waiting area
The Customer
Is there a vacant computer?
The documents will be printed

The customer will payThe

forcustomer
his bills atwill
thepay for his
server/ bills at the server/ cashier
cashier

Yes
Save Print

The attendant will give the price of the printed copies

The customer will be directed to the vacant computer

Save or Print. Customer will give to attendant the devic

The attendant will start the time in the server

The customer will pay for the printed copies at the server/ cashier

The customer will pay to the cashier

Customer will log off and pay in the counter

Customer exits from “Metro Cyber Cafe”

Machineries and Equipments

Metro Cyber Café will provide better and higher quality services compared to its

competitors for the students of Centro Escolar University, San Sebastian - Recoletos, The

National Teachers College, V. Mapa High School, San Beda College, Samson College of Science

and Technology and other individuals around the area. To function competitively, we choose to

have the best equipment, materials, and programs at a reasonable price. After gathering

information from different suppliers about different parts and accessories, we come up with a

decision to engage with Gaisano Interspace Computer Systems which can give the best offer for

our business.
 35

The gaming and research zone computer sets are composed of motherboards,

processors, hard disk, and video cards and RAM (Random Access Memory). With the

combination of these, customers will experience high performance computers.

MACHINERIES AND EQUIPMENTS

Here we classify the necessary equipments that will be used and placed in the office.

The table shows the list of equipments with quantity needed, unit cost, total amount and the

source.

MACHINERIES AND EQUIPMENTS

DESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT SOURCE
Computer 1 unit P38,500.00 P38,500.00 Gaisano Interpace
(for server) Computer Systems
Intel Core i5 750
Computer set 16 sets P18,045.00 P288,720.00 Gaisano Interpace
(for game zone) Computer Systems
Computer set 20 sets P12,595.50 P251,910.00 Gaisano Interpace
(surfing zone) Computer Systems
Sanyo LCD TV 1unit P22,995.00 P22,995.00 Robinsons
32” Appliances
LG Air 2units P34,499.00 P68,998.00 Robinsons
Conditioner Appliances
Cooling fan 1 unit P1,500.00 P1,500.00 Robinsons
Appliances
Exhaust fan 2units P848.00 P1,969.00 ABENSON
(Hanabishi)
EFHEWF-10-10”
CCTV Camera 7units P990.00 P6,930.00 CD-R King
Emergency 3units P999.75 P2,999.25 ACE Hardware
Lights
Fire Extinguisher 2pcs. P1,199.75 P2,399.50 ACE Hardware
Cash box 1pc. P6,300.00 P6,300.00 National Bookstore
Cash Register 1pc. P990.00 P990.00 National Bookstore
Speaker
Kinetic 2units P1,100.00 P3,200.00 Raon Electronics
Konzert 1unit P1,000.00 Center
Amplifier 1unit P3,900.00 P3,900.00 Raon Electronics
Center
UTP Cable 50meters P6.95 per P347.50 GICS
 36

meter
OS Window 1pc. P6,995.00 P6,995.00 GICS
Antivirus 1pc. P950.00 P950.00 PC Gilmore
HUB
24-ports 1unit P4,495.00 P4,495.00 GICS
16-ports 1unit P2,850.00 P2,850.00
Card Reader 3pcs. P250.00 P750.00 PC Gilmore
Web cam 20pcs. P395.00 P7,900.00 GICS
Headset 37pcs. P90 P3,330.00 GICS
Printer
EPSON 3-IN-1 1unit P3,959.00 GICS
TX110 HP P5,754.00
DeskJet 1660 1unit P1,795.00
TOTAL P734,682.25

FURNITURE AND FIXTURES

We have categorized and identified the Furniture and Fixtures needed by the company.

This table shows details of the Furniture and Fixtures to be placed within the Business premises.

FURNITURE AND FIXTURE

DESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT SOURCE
Sofa (DAIM L- 1 set P 14950.00 P 14950.00 SM Homeworld
Shape Sofa)
Chair (BALBINS 36pcs P875.00 P31,500.00 Brain Office
Visitor Chair) Furniture
Computer Table Package deal P10,000.00 P10,000.00
Center Table 1pc P2,000.00 P2,000.00 SM Homeworld
Carpet 1pc P5,000.00 P5,000.00 SM Homeworld
Display Window 2 sets P3,750.00 P7,500.00 Sulit.com
TOTAL P70,950.00
 37

Operating Supplies

The table shows the list of materials under the category of Office Supplies needed for

the Business Operation. The lists provided are for single purchase of the firm.

SUPPLIES EXPENSE
DESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT SOURCE
Short bondpaper 4 reams P209.00 P836.00 National Bookstore
Long bondpaper 4 reams P247.00 P988.00 National Bookstore
Stapler 1pc P60.00 P60.00 National Bookstore
Staple wire 1 box P38.00 P38.00 National Bookstore
Short folder 1pck P16.75 P16.75 National Bookstore
Long folder 1pck P19.75 P19.75 National Bookstore
Scissors 1pc P40.00 P40.00 National Bookstore
Ruler 1pc P25.00 P25.00 National Bookstore
Star file 1pc P142.75 P142.75 National Bookstore
Pencil 3pcs P5.00 P15.00 National Bookstore
Ball pen 3pcs P6.00 P18.00 National Bookstore
Ink 2 sets P4, 999.00 P9,998.00 GICS
Broom 2pcs P80.00 P160.00 Market
Mop 1pc P244.75 P244.75 ACE Hardware
Dust pan 1pc P69.75 P69.75 SM Homeworld
Mop bucket 1pc P274.75 P274.75 ACE Hardware
Feather duster 2pcs P49.75 P98.50 ACE Hardware
Tissue paper 2packs P99.00 P198.00 SM Supermarket
Pail 1pc P169.75 P169.75 SM Homeworld
Dipper 1pc P24.75 P24.75 SM Homeworld
Detergent soap 1pack P191.75 P191.75 SM Supermarket
Trash basket 4pcs P149.75 P599.00 SM Homeworld
Air freshener 2cans P154.75 P309.50 SM Supermarket
Toilet cleaner 1bottle P97.75 P97.75 SM Supermarket
TOTAL P14,635.50

INTERNET CONNECTION

PLDT My DSL
Monthly Service Fee P3000
Download Speed 3mbps
Upload Speed 2mbps
 38

No. Of Computers Supported 50 units

Installation Cost Free

Operation hours
Store Operation will be from 6am until 10pm

PROJECT LAYOUT

Floor Plan

Toilet bowl
Toilet sink
Air-con LCD TV

Urinal GAME ZONE

Speakers

LOBBY
 39

Exhaust fan

RESEARCH ZONE

Center table

Trash can Computer Cooling fan

Sofa

Utilities

UTILITY CONSUMPTION RATE TOTAL

Manila Water P300 P3,600
Meralco P41,606.27 P499,275.24
PLDT My DSL P3,000 P36000

Waste Disposal Management

The more waste we generate, the more we have to dispose of. Since our business is a
computer renting services we usually used bond paper, so it is not hard for us to think how it
will be disposed. In order to maintain the cleanliness inside the business establishment there are
trash cans placed in the server area, waiting area, office area and in the comfort room.

Cleaning Materials
Broom Dust Pan Plastic
 40

Trash Basket

Feather Duster

Mop

Detergent soap

Air Freshener
 41

Part 8
FINANCIAL ASPECT
SUPPLIES
Short bondpaper - 4 reams 836.00
Long bondpaper - 4 reams 988.00
Stapler - 1pc 60.00
Staple wire - 1 box 38.00
Short folder - 1 pack 16.75
Long folder - 1 pack 19.75
Scissors - 1pc 40.00
Ruler - 1pc 25.00
Star file - 1pc 142.75
Pencil - 3pcs 15.00
Ballpen - 3 pcs 18.00
Ink - 2 sets 9,998.00
Broom - 2 pcs 160.00
Mop - 1pc 244.75
Dust pan - 1pc 69.75
Mop bucket- 1pc 274.75
Feather duster - 2pcs 98.50
Tissue paper - 2packs 198.00
Pail - 1pc 169.75
Dipper - 1pc 24.75
Detergent soap - 1pack 191.75
Trash basket - 4pcs 599.00
Air freshener - 2cans 309.50
Toilet cleaner - 1bottle 97.75
TOTAL 14,635.50

MACHINERIES AND EQUIPMENTS

Computer (for server)Intel Core i5 750 38,500.00

Computer set (for game zone) -16 sets 288,720.00
Computer set (surfing zone) -20 sets 251,910.00
Sanyo LCD TV 32” 22,995.00
LG Air Conditioner - 2 units 68,998.00
Cooling fan 1,500.00
Exhaust fan (Hanabishi) EFHEWF-10-10” -2 units 1,969.00
CCTV Camera -7 units 6,930.00
Emergency Lights - 3 units 2,999.25
Fire Extinguisher -2 pcs 2,399.50
Cash box 6,300.00
Cash Register Metro
990.00 Cyber Café
Speaker (Kinetic) -2 units PERMITS 2,200.00
Speaker
Business(Konzert)
Tax 1,000.00
1,800.00
Amplifier 3,900.00
Mayor's Permit 1,360.00
UTP Cable -50 meters 347.5
Business
OS Window Plate 500.00
6,995.00
Sanitary
Antivirus 200.00
950
HUB 24-ports
Health Certificate 4,495.00
50.00
HUB 16-ports 2,850.00
Occupational Tax 600.00
Card Reader -3 pcs 750
Inspection Fee 160.00
Web cam -20 pcs 7,900.00
Process Fee
Headset -25 pcs FURNITURE AND FIXTURES 13.75
3,330.00
Printer
Zoning EPSON
Fee L-3-IN-1
Sofa (DAIM ShapeTX110
Sofa) HP 3,959.00
55.00
14,950.00
Printer EPSONand3-IN-1
Chair (BALBINS
Application DeskJet
Visitor
Filing Chair)1660 1,795.00
31,500.00
150.00
TOTAL:
Computer Table 734,682.25
10,000.00
Fire Permit 50.00
Center Table 2,000.00
BIR Metro Cyber 500.00
Café 5,000.00
Carpet
DTI
Display Window 315.00
7,500.00
TOTAL Certification
Barangay 70,950.00
0.00
TOTAL 5,753.75
 42

Metro Cyber Café

Metro Cyber Café

 43

INCOME
Year 1
A B C D E F G H I J K
Computer Black Colored File Membership
Months Days Hours Units Scanning Pay Phone Gross Income
Rental Printing Printing Transfer Card

Php 20.00 Php 2.00 per print Php 5.00 per print Php 10.00 per scan Php 5.00 per transfer Php 5.00 per call Php 50.00 per card
per hour (30 pcs per day) (10 pcs per day) 1 scan per day 1 transaction per day 1 customer per day 1 customer will avail per day

Formulas  (A*B*C*20=D) (A*2*30=E) (A*5*30=F) (A*10*1=G) (A*5*1=H) (A*5*1=I) (A*50*1=J) (D+E+F+G+H+I+J=K)

Jan 25 10 36 180,000.00 1,500.00 3,750 250 125 125 1250 187,000.00

Feb 24 10 36 172,800.00 1,440.00 3,600 240 120 120 1200 179,520.00
Mar 27 13 36 252,720.00 1,620.00 4,050 270 135 135 1350 260,280.00
Apr 26 10 36 187,200.00 1,560.00 3,900 260 130 130 1300 194,480.00
May 26 9 36 168,480.00 1,560.00 3,900 260 130 130 1300 175,760.00
Jun 26 11 36 205,920.00 1,560.00 3,900 260 130 130 1300 213,200.00
Jul 26 11 36 205,920.00 1,560.00 3,900 260 130 130 1300 213,200.00
Aug 27 10 36 194,400.00 1,620.00 4,050 270 135 135 1350 201,960.00
Sep 26 12 36 224,640.00 1,560.00 3,900 260 130 130 1300 231,920.00
Oct 26 11 36 205,920.00 1,560.00 3,900 260 130 130 1300 213,200.00
Nov 26 10 36 187,200.00 1,560.00 3,900 260 130 130 1300 194,480.00
Dec 25 12 36 216,000.00 1,500.00 3,750 250 125 125 1250 223,000.00
TOTAL 310 2,401,200.00 18,600.00 46,500.00 3,100.00 1,550.00 1,550.00 15,500.00 2,488,000.00
 44

Expenses
Year 1
A B C D E F G H I J K L M N
Taxes & Recruitment
Days Salaries Utilities Rent Supplies Maintenance Promotion Miscellaneous Depreciation Total Expense
Licences & Training
Internet
Electricity Water Equipments FF
Connection

Jan 25 61,008.00 39,749.48 300.00 3,000.00 30,000.00 14,635.50 1,000.00 11,725.00 150.00 5,753.75 5,000.00 12,244.70 1,182.50 185,748.93
Feb 24 61,008.00 39,749.48 300.00 3,000.00 30,000.00 0.00 1,000.00 9,000.00 150.00 0.00 0.00 12,244.70 1,182.50 157,634.68
Mar 27 61,008.00 47,176.64 300.00 3,000.00 30,000.00 0.00 1,000.00 9,720.00 150.00 0.00 0.00 12,244.70 1,182.50 165,781.84
Apr 26 61,008.00 39,749.48 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 157,994.68
May 26 61,008.00 37,273.76 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 155,518.96
Jun 26 61,008.00 42,225.20 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 160,470.40
Jul 26 61,008.00 42,225.20 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 160,470.40
Aug 27 61,008.00 39,749.48 300.00 3,000.00 30,000.00 0.00 1,000.00 9,720.00 150.00 0.00 0.00 12,244.70 1,182.50 158,354.68
Sep 26 61,008.00 44,700.92 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 162,946.12
Oct 26 61,008.00 42,225.20 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 160,470.40
Nov 26 61,008.00 39,749.48 300.00 3,000.00 30,000.00 0.00 1,000.00 9,360.00 150.00 0.00 0.00 12,244.70 1,182.50 157,994.68
Dec 25 61,008.00 44,700.92 300.00 3,000.00 30,000.00 0.00 1,000.00 9,000.00 150.00 0.00 0.00 12,244.70 1,182.50 162,586.12
Total 310 732,096.00 499,275.24 3,600.00 36,000.00 360,000.00 14,635.50 12,000.00 114,685.00 1,800.00 5,753.75 5,000.00 146,936.45 14,190.00 1,945,971.94

Salaries derived from the average salary of an employment which is 26 days in a month.
Electric bill derived from Meralco Application Calculator (MAC).
Water bill derived from the survey of the competitors.
Internet connection derived base on the amount provided by PLDT MyDSL.
Supplies …
Maintenance..
 45

PROFIT
INCOME – EXPENSE = PROFIT

Php 2,488,000.00 – Php 1,945,971.00 = Php 542,028.06

INCOME TAX
Rate: Php 125,000.00+32 % of the excess over Php 500,000.00 in 2000 and
onward. (Based on the Tax Rate)

Php 542,028.06 – Php 500,000.00 =Php 42,028.06

Php 42,028.06× .32 = Php 13,448.98

Php 125,000.00 +¿Php 13,448.98 = Php 138,448.98

NET INCOME AFTER TAX

Profit – Income Tax = Net Income after Tax

Php 542,028.06 - Php 138,448.98 = Php 403,579.08

 46

SCHEDULE
January 2011

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total

SALES
Printing 15,960.00 16,380.00 16,590.00 16,170.00 65,100.00
Computer Rental 605,520.00 561,600.00 624,960.00 609,120.00 2,401,200.00
Scanning 760.00 780.00 790.00 770.00 3,100.00
File Transfer 380.00 390.00 395.00 385.00 1,550.00
Pay Phone 380.00 390.00 395.00 385.00 1,550.00
Membership Card 3,800.00 3,900.00 3,950.00 3,850.00 15,500.00
TOTAL SALES 626,800.00 583,440.00 647,080.00 630,680.00 2,488,000.00

LESS OPERATING EXPENSE

Licenses & Taxes 5,753.75 0.00 0.00 0.00 5,753.75
Rent Expense 90,000.00 90,000.00 90,000.00 90,000.00 360,000.00
Light and Water 127,575.60 120,148.44 127,575.60 127,575.60 502,875.24
Telephone and Internet 9,000.00 9,000.00 9,000.00 9,000.00 36,000.00
Promotional Expense 30,445.00 28,080.00 28,440.00 27,720.00 114,685.00
Recruitment and Training 5,000.00 0.00 0.00 0.00 5,000.00
Salaries and Wages 183,024.00 183,024.00 183,024.00 183,024.00 732,096.00
Depreciation - Equipments 36,734.11 36,734.11 36,734.11 36,734.11 146,936.45
Depreciation - FF 3,547.50 3,547.50 3,547.50 3,547.50 14,190.00
Maintenance Expense 3,000.00 3,000.00 3,000.00 3,000.00 12,000.00
Supplies Expense 14,635.50 0.00 0.00 0.00 14,635.50
Miscellaneous 450.00 450.00 450.00 450.00 1,800.00
TOTAL OPERATING EXPENSE 509,165.46 473,984.05 481,771.21 481,051.21 1,945,971.94

- - - - -
NET INCOME 117,634.54 109,455.95 165,308.79 149,628.79 542,028.06

INCOME TAX 138,448.98 138,448.98

NET INCOME AFTER TAX 403,579.08