Business Plan Chapter 1

1
CHAPTER I
THE PROBLEM AND ITS SCOPE
INTRODUCTION
Rationale of the Study
With the proliferation of the coffee-culture, there are many
opportunities in the coffeeshop business in Metro Cebu. Metro
Cebu is the commercial, financial, educational, economic, and
population center of the Visayas. Commerce is very active from
micro to large multinationals. Tourism is booming. The rapid growth
and development of Cebu, creates more business opportunities
everyday.
Every year, more and more people flock to the most dynamic
metropolitan area outside of Metro Manila to work and study. The
growing economy of Cebu gave rise to increased workforce needs
that need filling in. As such, university and college enrollments
have been steadily going up in recent years and universities and
colleges have been expanding.
With the rise of the Metro’s student population along with the
proliferation of coffee culture in the country, there has been an up-
tick in the demand for more coffeeshops in large metropolitan
areas. Coffeeshops are no longer a place of leisure but a place to
work and study as well. A surge in college, graduate, and post-
graduate students studying in coffeeshops, both individually and in
groups, is a movement that show no signs of slowing down anytime
soon.
The Banilad-Talamban areas alone are homes to the largest
campuses of the two (2) largest universities of the province:
University of Cebu (Banilad); and University of San Carlos-TC
(Talamban).
2
With the aforementioned analysis, the proponent aims to

conduct a study on the Proposed Establishment of a Coffee Shop
and Study Center by CAFÉ ACADEME at Northgate Centre,
Banilad, Cebu City. If the results of the study indicates feasibility of
the proposal, then it will go as planned.
Theoretical Background
Opportunities come along with development. Marketing of this kind
of services is quite favorable. The rapid growth of populace tends
to get a chance in availing laundry services. “The strongest growth
will most likely be in emerging markets, although prospects in many
developed markets are also quite good. Driving much of this growth
is the huge wave of market-based capitalism sweeping the globe,
(MacFarlin & Sweeney, 1998). Houzz (2017), “because of their
double-or triple- duty potential, it is a good investment for you and
for your family”, (Houzz, 2017).
According to Howell, the older population will have money to
spend, but unique needs based on their age and physical
limitations”. The gradual development of a certain place connotes
the increase of needs and wants. “Failing to understand such
dramatic demographic shifts and responding to them ultimately
result in business failure itself”, (Howell). Business need to address
a changing of the guard as the baby boomers step down from their
management roles”, (Hooley).
The traditional laundry is attributed to the women’s job. Mostly it is
done on the riverbanks. It is often rubbed, twisted and/or slammed
on the hard thing just like rock. Even now, some rural areas with
water problem still practices it.
3
According to Ikea Family (2017), “laundry day doesn’t have to be

something to dread. The trick is to make it feel less like work-with
smarter ways to sort, space- saving ways to dry and simpler ways
to organize”. This aspect gives an individual option to deal with and
implicates its responsibility.
Advance technology leads an idea of business. According to
Sweeny and MacFarlin (1998), “one cause of explosion of new
entrepreneurs is the current trend of today’s corporate
professionals who leave their large companies to start their own
business”. Thus washing machine strives more comfort in doing the
task. With the innovation of the washing machines, it gives an
opportunity such as laundry services. But this opportunity will be a
positive outlook to the developed places with busy people.
“Changes in demographics directly affect the market size and the
whole market. Therefore, if the organization can provide the
product/services for them, it can turn out to be the opportunity for
the organization”, (Ukessays, 2015).
The availability of micro, small and medium scales establishments
like identified hotels, apartments, boarding houses, financial
institutions and university will generate supplementary job
opportunities. Thus, busy place is a reflection of a busy people. It
is tantamount to the business opportunity just like laundry services.
“It may be considered a dirty job by most, but the laundry shop
business is a thriving industry in highly urbanized cities such as
Metro Manila, Cebu, and Davao. The growing number of Filipinos
opting to live in mid-rise and high-rise condominiums, owing the
lack of space where to hang and dry clothes,
has spurred the growth of the laundry business in the Philippines”,

(Mr. Laundry Shop, 2017).
“The laundry and dry cleaning market is one of the top ten fields for
making millionaires (source: www.dryclean.usa.com). Why?
4
Because there will always be a dirty clothes- and a market for

cleaning them. People pay for convenience. The changing face of
the South African workplace means there’s now less time far
essential household chores”, (Fresh Laundry, 2017).
Flow of Research Process

The flow of this research study is composed of three stages:
the input, process and output of the study.
The inputs of the study is focused on the questionnaire
formulated by the researcher to assess the opportunity of laundry
services in Naval Biliran.
The study used descriptive survey method. A researcher-
made questionnaire was formulated, tested, administered and
retrieved. The data was then be gathered, analyzed, interpreted
and presented.
The output is composed of the recommendations that the
researcher may suggest for the study to be feasible and
implemented.
Figure 1 on the next page shows the research flow chart of
the opportunity of opening a coffeeshop in Northgate Centre,
Banilad, Cebu City.
5
THE PROBLEM
This research seeks to ascertain the feasibility and viability of the
Proposed Establishment of a Coffee Shop and Study Center by
CAFÉ ACADEME at Northgate Centre, Banilad, Cebu City.
It intends to answer the following questions:
1. How feasible is the Establishment of a Coffeeshop in Banilad,
Cebu City in terms of the following aspects:
1.1 Management;
1.2 Marketing;
1.3 Technical;
1.4 Legal and Taxation;
1.5 Financial;
1.6 Socio-Economic Desirability; and
1.7 SWOT Analysis?
2. Based on the findings, what recommendations can be proposed
to improve the CAFÉ ACADEME at Northgate Centre, Banilad,
Cebu City?
6
SIGNIFICANCE OF THE STUDY

This particular study will be helpful because of the gradation of
importance to a specific individual and to the following groups in
particular:
The Customer
The study will provide the customers a new and unique coffeeshop
option tailored to their student needs. The implementation of the
project study will give more convenience to the customers.
The Investors
This research will able to give ideas to the investors to promote
business in a particular place. This will be a guide in setting-up a
new opportunity.
The Management
This study will serve as the basis for the operation of the business.
It is to the management that this study will be most useful to. The
results of the study will be the foundation of the establishment of
the business and will serve as a key guide to its planning,
organizing, staffing, directing, and controlling.
The Researcher
This study is a venue for the researcher to apply the management
principles and theories he/she learned - from feasibility to
establishment and operation of a legitimate business enterprise.
The Future Researchers
This study will be useful as a reference for other innovative and
unique business concepts in the similar industry. It will also serve
as the primary basis of future expansion plans of the proposed
business, whether it will be done by the original researcher or
another one.
7
RESEARCH DESIGN
Research design deals with the examination of valuable and
relevant information about the methods and tools of data gathering
and the appropriate treatment of gathered data. Henceforth, this
study focuses on the Establishment of a Coffee Shop and Study
Center by CAFÉ ACADEME at Northgate Centre, Banilad.
Research Methodology
This study uses descriptive survey method through the aid of
research- made questionnaires as the main instrument for data
collection. With this method, the researcher has no control on the
variables of the study. The instrument of this study which is the
research-made questionnaire was answered by the identified
target market living in the apartments.
Research Respondents
The research subjects of this study were those living in the
apartments situated at the proper of Naval, Biliran. As of March,
2017, during this activity, there are 10 apartments with the total of
141 tenants living in a particular apartment. With the use of Slovin’s
Formula, there were 104 respondents who are made to answer the
researches-made questionnaire.
Slovin’s Formula : n = N / (1+Ne2)
Where: n = No. of sample size N = Total population
e = Margin of error (0.05) 1 = Constant Number

Business Plan Chapter 1

Uploaded by

Copyright:

Available Formats

Business Plan Chapter 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Plan Chapter 1

Uploaded by

Copyright:

Available Formats

1

With the aforementioned analysis, the proponent aims to

According to Ikea Family (2017), “laundry day doesn’t have to be

has spurred the growth of the laundry business in the Philippines”,

Because there will always be a dirty clothes- and a market for

Flow of Research Process

SIGNIFICANCE OF THE STUDY

You might also like