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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

REGISTRATION

REQUIREMENTS FOR

REGISTRATION

CERTIFICATE ISSUED

DTI 2 valid ID’s

Filled DTI registration form

Certificate of registration of

Business Name (renewable

every 5 years)

City or Municipal

Mayor’s Office

Accomplished Business Permit

Application form

DTI-Business Name Certificate

Sketch of the business location

Fire Safety Inspection Clearance

Sanitary permit

Barangay clearance

Lease of contract

2pcs 2X2 colored ID picture

Mayor’s permit and License

to operate (renewable

annually)

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Registration fee

Bureau of Internal

Revenue

DTI Certificate

Filled BIR form

BIR Registration Number

Taxpayer’s Identification

Number

Registration of books,

invoices and official receipts

Social Security System Filled SSS form

List of employees

SSS Certificate of

membership

SSS employer ID

PhilHealth Filled PhilHealth application

form

List of employees

PhilHealth Certificate of

membership

PhilHealth employer ID

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PART 2HOSPITAL 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 VisionCatholic Healthcare and our Sponsoring

Congregations are committed to furthering the

healing ministry of Jesus. We dedicate our

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.

A vibrant, national health care system known for service, chosen for clinical excellence, standing in partnership with patients, employees and physicians to improve the health of all communities served.

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. Gangano1505 Napico Manggahan , Pasig Citymoisesganganoyahoo.com09108529178

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PART 3CONCLUSIONS 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 4PROJECT 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

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

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)

General Manager (2)

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Part 5MANAGEMENT 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

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Employees & Staffs Job Requirements and Functions

JOB REQUIREMENTS FUNCTIONS

GENERAL

MANAGER

Male or Female25 to 40 years old, Graduate of

any business-related course, preferably management

Must possess supervisory qualities

Must possess good administrative, human relation and maintenance skills

Must have good communication skills

Must at least have 2 years of experience in the same field

Supervise the overall operation of the business.

Oversees the overall operations, marketing, finance and legal affiliations of the company

The direct representative of the company, capable of making sound decisions

Responsible in leading & maintaining a productive, safe, cost-efficient and legal workplace

IT

SPECIALISTS

Male 25-40 years old Must be a graduate of

Computer Technology Preferably with related working

course Must be honest and

trustworthy

Installing, maintaining, and repairing hardware and software are the general tasks included in the job description of a computer technician

Maintaining servers and network

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Technical support for software and hardware issues

Setting up and maintaining backup system for in-office desktop computers and file servers

ADMINISTRATIVE

ATTENDANT

Male or Female 18 to 30 years old At least College Level Preferably with related working

experience Must be punctual Good in multi-tasking Sensitive to customer’s needs

and wants Must be honest and

trustworthy Willing to work in shifting

schedules

Assists the customersKnowledgeable in computer

troubleshootingRepairs and maintains

computer effectivenessRespond to customers

inquiries, concerns and consultation

Maintain cleanliness and orderliness within the shop

Logging the customers hours consumed

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

8 Hrs First Shift 6 am – 2 pm 30 minutes Sunday

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(with pay)

8 Hrs Second Shift 2 pm – 10 pm 30 minutes(with pay)

Sunday

ADMINISTRATIVE ATTENDANT

Working Hours SHIFTING SCHEDULES TIME Break Time Rest Day

8 Hrs First Shift 6 am – 2 pm 30 minutes(with pay)

Sunday

8 Hrs Second Shift 2 pm – 10 pm 30 minutes(with pay)

Sunday

IT SPECIALIST

Working Hours SCHEDULE TIME Break Time Rest Day

8 Hrs Monday and Tuesday 6 am – 2 pm 30 minutes(with pay)

Wednesday 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)

Position

No.

of

empl

oyee

s

Basi

c M

onth

ly

Sala

ry

SSS

PhilH

ealth

Tax

Dedu

ction

Tota

l De

ducti

ons

Sal

ary

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

2. 13th Month Pay

3. Maternity leave

4. Paternity Leave

5. Philhealth

6. SSS

7. Uniform (see Appendix A)

COMPUTATION:

General Manager

72.12per hour

x 8hrs .= 576.93per day

x 26days= 15000per month

IT Specialist

156.25per hour

x 8hrs .= 1250per day

x 8days= 10000per month

Administrative Staff

50.50per hour

x 8hrs .= 404per day

x 26days= 10504per 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

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MARKETING ASPECT

GENERAL MARKET DESCRIPTION

Target Market

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

Social Environment

This diagram shows how external environment affect the company.

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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.

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.

Market SizeThe 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.

DemandDEMAND SITUATION OF THE MARKET FOR THE CURRENT YEAR

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UNIVERSITY Population of Students

Percentage of consumers who

always visit a comp shop based on

survey

Percentage of consumers who occasionally visit

a comp shop based on survey

Percentage of consumers who never visits comp shop based on survey

Market Size

Centro Escolar University

13799 50% 50% 0% 6,899.5

San Sebastian College – Recoletos

3340 12% 84% 4% 400.8

National Teacher’s College

3903 40% 58% 2% 1,561.2

V. Mapa High School 4419 50% 50% 0% 2,209.5

San Beda 5253 58% 42% 0% 3,046.74Samson College of

Science and Technology

660 48% 46% 6% 316.8

TOTAL 14,434.54

Note: CEU admits 15,000 students per year and 14,407 students is estimated to graduate per yearSan 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 yearV. Mapa admits 4,500 students per year and 831 students is estimated to graduate per

yearSan Beda admits 5,500 students per year and 5,253 students is estimated to graduate

per yearSamson admits 350 students per year and 330 students is estimated to graduate per

year

Assumption: Each customer rents for an hour

DEMAND FOR INTERNET CAFE – YEAR 1

UNIVERSITY X P A B DEMANDCEU 6899.5 50% 15,000 14,407 7,196

SAN SEBASTIAN – RECOLETOS

400.8 12% 3,500 3,408 411.84

NTC 1561.2 40% 4,000 3,733 1,668

V.MAPA 2209.5 50% 4,500 831 4,044

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.

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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

P = % of computer renters

A = number of students admitted

B = number of estimate graduates per year

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

UNIVERSITY MARKET DEMAND FOR THE CURRENT YEAR

YEAR 1

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

MARKET GROWTH RATE

Rate of Demand increase

R = [dtYear1-dtbase year]

dt base year

= 16,836.24 - 14,434.54

14,434.54

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.

Competitor Market Share Total DemandDk and Dk 21.13% 3557.497512Net Quest 6.70% 1128.02808Anchor Blue Internet Café 9.80% 1649.95152

Leroj’s Internet Cafe 25.26% 4252.834224Geegz Point 6.70% 1128.02808Tricia’s Computer Shop 6.70% 1128.02808Next Fusion 5.15% 867.06636Metro Cyber Café 18.56% 3124.806144TOTAL DEMAND 100.00% 16836.24

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= 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

YEAR1 2 3 4 516,836.24 19,636 22,90

126,709 31,151

Note: Rate of increase is 16.63%

Demand Situation includes overall demand for Internet Cafes.

3.09% will be the increase of MCC yearly

Supply

Supply Situation

GEOGRAPHICAL SOURCESCOMPETITORS No. of PC Market Share

DK and DK 41 25.95%Net Quest 13 8.23%Anchor Blue Internet Café 19 12.03%Leroj’s Internet Café 49 31.1%Geegz Point 13 8.23%Tricia’s Computer Shop 13 8.23%

FORMULA:DF = dt year1 x rate of increase + dt n

FORMULA:

Total number of PC units/100=NN=1%

Number of PC/N=market share

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Next Fusion 10 6.33%

GEOGRAPHICAL SOURCESCOMPETITORS No. of PC Market ShareDK 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%

21.13%

6.70%

9.80%25.26%

6.70%

6.70%

5.15%18.56%

Market Share

Dk and DkNet QuestAnchor Blue Internet CaféLeroj's Internet CaféGeegz PointTricia's Computer ShopNext FusionMetro Cyber Café

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

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

SOURCE:

Total market share was derived based on the consumer survey.

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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

SWOT analysis based on the study conducted in the area.

Individual and Mass Communication

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Strength

- Customer oriented service offered

- High speed computer service

- Strategic store location

Opportunities

- Possible business and market

expansion

- Knowledge on the newest trend on

technology

Weakness

- Requires full attention for

maintenance of computers

- Some parts of computers are

expensive

- Some softwares are expensive

Threats

- Unstable economic status

- Weather condition

- Peak and lean season may cause

changes in demand

- 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.

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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

Colored

Php 2.00 / page – short

Php 3.00 / page – long

Php 5 / page – minimum

Scanning Php 10 / scan

Pay Phone Php 5.00 / 3 mins.

File Transfer

Documents

Video

Php 5.00 / document

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

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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.

OPERATIONAL FLOW CHART

The customer will be asked if how many copies will be printed

The customer will be asked if what section he wants to use. The customer will be asked the source of the file(s)The customer will be asked the source of the file The customer will be asked to give the file/ photo to be scannedThe customer will be asked to dial the phone number

Document PrintingComputer Rental File Transfer Pay Phone Scanning

The Customer enters “Metro Cyber Cafe”

Is the attendant assisting another customer?Yes

No

The Customer will be asked to stay at the lobby or waiting area

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

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.

34

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 EQUIPMENTSDESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT SOURCE

Computer(for server)

Intel Core i5 750

1 unit P38,500.00 P38,500.00 Gaisano Interpace Computer Systems

Computer set (for game zone)

16 sets P18,045.00 P288,720.00 Gaisano Interpace Computer Systems

Computer set (surfing zone)

20 sets P12,595.50 P251,910.00 Gaisano Interpace Computer Systems

Sanyo LCD TV 32”

1unit P22,995.00 P22,995.00 Robinsons Appliances

LG Air Conditioner

2units P34,499.00 P68,998.00 Robinsons Appliances

Cooling fan 1 unit P1,500.00 P1,500.00 Robinsons Appliances

Exhaust fan (Hanabishi)

EFHEWF-10-10”

2units P848.00 P1,969.00 ABENSON

CCTV Camera 7units P990.00 P6,930.00 CD-R KingEmergency

Lights3units P999.75 P2,999.25 ACE Hardware

Fire Extinguisher 2pcs. P1,199.75 P2,399.50 ACE HardwareCash box 1pc. P6,300.00 P6,300.00 National Bookstore

Cash Register 1pc. P990.00 P990.00 National BookstoreSpeakerKineticKonzert

2units1unit

P1,100.00P1,000.00

P3,200.00 Raon Electronics Center

Amplifier 1unit P3,900.00 P3,900.00 Raon Electronics Center

UTP Cable 50meters P6.95 per P347.50 GICS

36

meterOS Window 1pc. P6,995.00 P6,995.00 GICS

Antivirus 1pc. P950.00 P950.00 PC GilmoreHUB

24-ports16-ports

1unit1unit

P4,495.00P2,850.00

P4,495.00P2,850.00

GICS

Card Reader 3pcs. P250.00 P750.00 PC GilmoreWeb cam 20pcs. P395.00 P7,900.00 GICSHeadset 37pcs. P90 P3,330.00 GICSPrinter

EPSON 3-IN-1TX110 HP

DeskJet 1660

1unit

1unit

P3,959.00

P1,795.00P5,754.00

GICS

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 FIXTUREDESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT SOURCESofa (DAIM L- Shape Sofa)

1 set P 14950.00 P 14950.00 SM Homeworld

Chair (BALBINS Visitor Chair)

36pcs P875.00 P31,500.00 Brain Office Furniture

Computer Table Package deal P10,000.00 P10,000.00Center Table 1pc P2,000.00 P2,000.00 SM Homeworld

Carpet 1pc P5,000.00 P5,000.00 SM HomeworldDisplay 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 EXPENSEDESCRIPTION QUANTITY UNIT PRICE TOTAL AMOUNT SOURCE

Short bondpaper 4 reams P209.00 P836.00 National BookstoreLong bondpaper 4 reams P247.00 P988.00 National Bookstore

Stapler 1pc P60.00 P60.00 National BookstoreStaple wire 1 box P38.00 P38.00 National BookstoreShort folder 1pck P16.75 P16.75 National BookstoreLong folder 1pck P19.75 P19.75 National Bookstore

Scissors 1pc P40.00 P40.00 National BookstoreRuler 1pc P25.00 P25.00 National Bookstore

Star file 1pc P142.75 P142.75 National BookstorePencil 3pcs P5.00 P15.00 National Bookstore

Ball pen 3pcs P6.00 P18.00 National BookstoreInk 2 sets P4, 999.00 P9,998.00 GICS

Broom 2pcs P80.00 P160.00 MarketMop 1pc P244.75 P244.75 ACE Hardware

Dust pan 1pc P69.75 P69.75 SM HomeworldMop bucket 1pc P274.75 P274.75 ACE Hardware

Feather duster 2pcs P49.75 P98.50 ACE HardwareTissue paper 2packs P99.00 P198.00 SM Supermarket

Pail 1pc P169.75 P169.75 SM HomeworldDipper 1pc P24.75 P24.75 SM Homeworld

Detergent soap 1pack P191.75 P191.75 SM SupermarketTrash basket 4pcs P149.75 P599.00 SM HomeworldAir freshener 2cans P154.75 P309.50 SM SupermarketToilet cleaner 1bottle P97.75 P97.75 SM Supermarket

TOTAL P14,635.50

INTERNET CONNECTION

PLDT My DSL

Monthly Service Fee P3000

Download Speed 3mbps

38

Upload Speed 2mbps

No. Of Computers Supported 50 units

Installation Cost Free

Operation hoursStore Operation will be from 6am until 10pm

PROJECT LAYOUT

Floor Plan

Toilet bowlToilet sink

Air-con LCD TV

SpeakersUrinal GAME ZONE

39

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

Exhaust fan

Center table

SofaCooling fanComputerTrash can

RESEARCH ZONE

LOBBY

40

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

Trash Basket

Feather Duster

Mop

Detergent soap

Air Freshener

Metro Cyber Café

Computer (for server)Intel Core i5 750 38,500.00Computer set (for game zone) -16 sets 288,720.00Computer set (surfing zone) -20 sets 251,910.00Sanyo LCD TV 32” 22,995.00LG Air Conditioner - 2 units 68,998.00Cooling fan 1,500.00Exhaust fan (Hanabishi) EFHEWF-10-10” -2 units 1,969.00CCTV Camera -7 units 6,930.00Emergency Lights - 3 units 2,999.25Fire Extinguisher -2 pcs 2,399.50Cash box 6,300.00Cash Register 990.00Speaker (Kinetic) -2 units 2,200.00Speaker (Konzert) 1,000.00Amplifier 3,900.00UTP Cable -50 meters 347.5OS Window 6,995.00Antivirus 950HUB 24-ports 4,495.00HUB 16-ports 2,850.00Card Reader -3 pcs 750Web cam -20 pcs 7,900.00Headset -25 pcs 3,330.00Printer EPSON 3-IN-1 TX110 HP 3,959.00Printer EPSON 3-IN-1 DeskJet 1660 1,795.00TOTAL: 734,682.25

MACHINERIES AND EQUIPMENTS

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

SUPPLIES

Sofa (DAIM L- Shape Sofa) 14,950.00Chair (BALBINS Visitor Chair) 31,500.00Computer Table 10,000.00Center Table 2,000.00Carpet 5,000.00Display Window 7,500.00TOTAL 70,950.00

FURNITURE AND FIXTURES

Business Tax 1,800.00

Mayor's Permit 1,360.00

Business Plate 500.00

Sanitary 200.00

Health Certificate 50.00

Occupational Tax 600.00

Inspection Fee 160.00

Process Fee 13.75

Zoning Fee 55.00

Application and Filing 150.00

Fire Permit 50.00

BIR 500.00

DTI 315.00

Barangay Certification 0.00

TOTAL 5,753.75

PERMITS

41

Part 8

FINANCIAL ASPECT

Metro Cyber Café

Business Tax 1,800.00

Mayor's Permit 1,360.00

Business Plate 500.00

Sanitary 200.00

Health Certificate 50.00

Occupational Tax 600.00

Inspection Fee 160.00

Process Fee 13.75

Zoning Fee 55.00

Application and Filing 150.00

Fire Permit 50.00

BIR 500.00

DTI 315.00

Barangay Certification 0.00

TOTAL 5,753.75

PERMITS

42

A B C D E F G H I J K

Php 20.00per hour

Php 2.00 per print(30 pcs per day)

Php 5.00 per print(10 pcs per day)

Php 10.00 per scan1 scan per day

Php 5.00 per transfer1 transaction per day

Php 5.00 per call 1 customer per day

Php 50.00 per card1 customer will avail per day

(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 187,000.00Feb 24 10 36 172,800.00 1,440.00 3,600 240 120 120 1200 179,520.00Mar 27 13 36 252,720.00 1,620.00 4,050 270 135 135 1350 260,280.00Apr 26 10 36 187,200.00 1,560.00 3,900 260 130 130 1300 194,480.00May 26 9 36 168,480.00 1,560.00 3,900 260 130 130 1300 175,760.00Jun 26 11 36 205,920.00 1,560.00 3,900 260 130 130 1300 213,200.00Jul 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 201,960.00Sep 26 12 36 224,640.00 1,560.00 3,900 260 130 130 1300 231,920.00Oct 26 11 36 205,920.00 1,560.00 3,900 260 130 130 1300 213,200.00Nov 26 10 36 187,200.00 1,560.00 3,900 260 130 130 1300 194,480.00Dec 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

Formulas

INCOMEYear 1

ComputerRental

UnitsHoursDaysMonths BlackPrinting

ColoredPrinting

Scanning FileTransfer

Pay Phone MembershipCard

Gross Income

Metro Cyber Café

43

A B C D E F G H I J K L NDays Salaries Rent Supplies Maintenance Promotion Miscellaneous Taxes &

LicencesRecruitment & Training

Total Expense

Electricity Water InternetConnection

Equipments FF

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 1,182.50 185,748.93Feb 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 1,182.50 157,634.68Mar 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 1,182.50 165,781.84Apr 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 1,182.50 157,994.68May 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 1,182.50 155,518.96Jun 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 1,182.50 160,470.40Jul 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 1,182.50 158,354.68Sep 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 1,182.50 162,946.12Oct 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 1,182.50 160,470.40Nov 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 1,182.50 157,994.68Dec 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

ExpensesYear 1

MUtilities Depreciation

Metro Cyber Café

44

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..

Metro Cyber Café

45

PROFITINCOME – EXPENSE = PROFIT

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

INCOME TAXRate: 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 TAXProfit – Income Tax = Net Income after Tax

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

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 15,500.00TOTAL 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 1,800.00TOTAL 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

SCHEDULEJanuary 2011

Metro Cyber Café

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