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TABLE OF CONTENTS

I. Dedication………………………………………………………………………………………………………….………………………………… i

II. Acknowledgement………………………………………………………………………………………………………………………………….. ii

III. Executive Summary……………………………………………………………………………………………………………………………….. iii

Chapter 1 : INTRODUCTION

                      Background of the Study………………………………………………………………………………........…………………………... 1

                       Statement of the Problem …………………………………………………………………………………………………….…………. 1

                       Scope and Delimitation of the Study ……………………………………………………………………..……………………..……… 2

                       Significance of the Study ……………………………………………………………………………………………….……………….. 2

                       Research Methodology ……………………………………………………………………………………………….…………………. 2

                       Background of the Business………………………………………………………………………………………….…………………...2

The business……………………………………………………………………………………….……………………..2

Business Logo and Tagline …………………………………………………………………………….………………..3

Location ………………………………………………………………………………………………..………………. ..3

Proponent …………………………………………………………………………………………….…………………..4

Customer……………………………………………………………………………………………………..……………4

Management ……………………………………………………………………………………………….……………. 5

Chapter 2 : MARKET STUDY 

Population and Respondents………………………………………………………………………………………………………. 7

Market Segmentation………………………………………………………………………………………………………………… 9

Target Market Segment Strategy …………………………………………………………………………………………………. 9

Survey Results and Analysis of Statistical Data……………………………………………………………………………….. 10

Market / Customer Segmentation……………………………………………………………………………………..…………. 22

Marketing Distribution……………………………………………………………………………………………………..……. 23

Sales Distribution……….….………………………………………………………………………….………………………… 24

Product Costing and Pricing ………………………………………………………………………..…………………………… 25

SWOT Analysis…………………………………………………………………………………………………………………… 29                

Chapter 3: Management Study

Form of Business Organization……………………………………………………………………………………………………39

Administrative Policies ……………………………………………………………………………………………………………39

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 Benefits of the Workers …………………………………………………..………………………………………………………42

Compensation Monthly …………………………………………………………………………………………………………..43

Chapter 4: Technical Study

Tool and Equipment ……………………………………………………………………………………………………………..44

Furniture and Fixtures……………………………………………………………………………………………………………45

Waste Management ……………………………………………………………………………………………………………….45

Chapter 5 : Financial Study

Summary of Assumptions ……………………………………………………………………………………………………………47

Statement of Financial Performance…………………………………………………………………………………………………48

Statement of owner’s Equity……………………………………………………………………………………………………………50

Statement of Financial Position ………………………………………………………………………………………………………51

Statement of Cashflows……………………………………………………………………………………………………………….53

Chapter 6:

Socio-Economic Desirability ………………………………………………………………………………………………………60

National and Local Government …………………………………………………………………………………………………..60

Community …………………………………………………………………………………………………………………………61

Chapter 7: Summary of Findings, Conclusions and Recommendations

Market Study………………………………………………………………………………………………………………………...62

Management Study …………………………………………………………………………………………………………………63

Technical Study ……………………………………………………………………………………………………………………64

DEDICATION

In this study's preparation, we gratefully acknowledge our indebtedness to all the people around us who
bestowed their full support.

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 To our dearest family, especially our parents, we dedicate this to them for their undying support both
financially and emotionally, for the constant encouragement and motivation in pursuing this study and for our
inspiration right from the beginning, and most of all for guiding us in our decisions. This study would not have
been successful without them. To our ever dedicated and supportive subject teacher, Ms. December Gay
Arayan, for the academic guidance, patience, and understanding for giving us so much time and believing that
we can finish this study. To our friends who had been there and stand as our energizer and sharing their
knowledge and making sure that we are not alone in this stressful situation. Also, for always encouraging us
every day, we thank them for the help and effort. To Saint Vincent's College Incorporated, Main Campus, SHS
and College Students, Employees, and Saint Mary's Academy Students who exerted their time in answering our
survey questionnaire. Most of all, we give our most excellent thanks to our most loving and compassionate
Father for the gift of wisdom, perseverance, courage, positivity, and determination for guiding us in
enlightening our minds and giving us the strength and will to pursue this study. To God be the Glory.

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 ACKNOWLEDGEMENT

In this study's preparation, we gratefully acknowledge our indebtedness to all the people around us who
bestowed their full support. 

We dedicate this to our dear family, especially our parents, for their undying support, both financially
and emotionally, for constant encouragement and motivation in pursuing this study, and our inspiration right
from the beginning. This study would not have been successful without them.

To our ever dedicated teacher, Ms. December Gay Arayan, we also dedicate this for her patience,
academic guidance, understanding, giving us enough time, and believing that we could finish this study. 

We also dedicate this to our friends who had imparted their knowledge to us and for seemingly boosted
our energy during the stressful days of this work. They also imparted their time in answering our survey
questionnaires.

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 EXECUTIVE SUMMARY

At the end of these chapters, we should be able to:

1. Establish a connection between Meals and Studying: and

2. Determine the feasibility of establishing a cafe with a study hub here in Dipolog City

The approach is made in determining the feasibility of establishing a cafe with a study hub here in
Dipolog City is taking a survey with some of the students and employee's around the city through a survey
questionnaire. We also got some help from knowledgeable people or professionals to make this study work.

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Brief Background of the Business

The business is entitled the Hideout. It is a café with a study hub inside solely owned by Mrs. Vetta
Archee A. Gallenero. The store will be located at Bonifacio Street, Estaka, Dipolog City; it will also provide
rental services for groups and individuals. Students can easily avail of the services, facilities which include
printers and scanners on the first floor of the study hub. Students can also avail best food services of the study
hub from the ground floor café. The sitting of the café will not be rentable, and everyone would be allowed to sit
any time after work or study. Students can spend time there by enjoying light meals and drinks from the café
shop of the study hub.

Brief Summary of the Findings of Each Aspect 

A. Market Study 

Findings

The business researchers discovered that the prices are very affordable even for students. They are
accompanied by a high market acceptance rate which is 82% among the randomly selected individuals, a sample
size of the population. According to the results gathered, the business will be feasible in the upcoming years.

Conclusions

      

  

From the rate of Market acceptance, the marketing feature is feasible and practical. The business will
captivate the target market; thus, it will be profitable throughout the operation and compete with excellence.

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B. Management Study 

Findings

The management implemented rules and regulations to give unity, discipline, and order to employees, as
well as the business as a whole. The business can be managed properly because the proponent of the business
has the knowledge, skills, and experience in handling and operating the business. There is fairness in treating the
employees as well as compensating them. There is also harmony inside the business. The management
prioritizes time management in terms of operating the business foresees to come on time as well as offering its
friendly atmosphere and strictness in cleanliness. 

Conclusions

Researchers have concluded that the management study is efficient, effective, and feasible.

C. Technical Study 

Findings

Furthermore, it makes the business determine on which of the operation they can save more by having a
good flowchart of how the products and services evolve and move through the business. All of this starts from
the customer inquiring on what is in the menu and decide on which they prefer the most. The business should
always consider the quality of the supplies, tools and equipment’s, well-being of the employees, the cleanliness
of the business environment and technologies in marketing the product and services. The purchase of the tools,
equipment’s, and supplies that are needed for the café business are being determined of the corresponding prices

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and its quality. The success of this business lies within its own environment and workforce and researchers plan
for the longevity of the business in the market which aims survive in the small market place.  

Conclusions

Based on the research and study that we conducted, we therefore conclude that our business is feasible
and viable in the market.

Chapter 1
Introduction

A. Background of the Study

As a whole, we put a lot through in this business. We throw many concepts throughout the process, and
we notice that students tend to visit coffee shops to study, so we thought about creating such a business, which
offers light meals and drinks in a study hub. We started to put the plan into action because, as a whole, we
decided that we should establish such business to be feasible as possible that would grab the attention of the
students commonly. We agreed that we should develop such a business to provide good service that would
undergo strategic and quantitative analytical data to be sustainable. The target is to become the first choice when
it comes to light meals and drinks while studying at the same time. This business is supported financially by
Mrs. Vetta Archee A. Gallenero, owner of tracking services here in Zamboanga del Norte.

B. Statement of the Problem

To fulfill our aim to establish the business, we must be able to make sure that we can establish a feasible
and sustainable business.

1. How can we make sure that we can attract the target market?
2. How can we satisfy the wants, needs, and requests of the customers?
3. How can we make sure the food and workplace are clean and well sanitize?
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4. What makes the customers want the food and services from the business?

We will be able to attract the markets with cleanliness and good service. To satisfy the customer's
wants, needs, and requests, we must put a suggestive box that helps them determine that there is always room
for improvements. Customers' satisfaction is essential in this specific field of business. To make sure that the
food and the workplace are clean and well sanitized, we must hire people who do the aftercare in every action to
prevent pests. When all good aspects are present, the business and the customers' attraction will be very high.

C. Scope and Delimitation of the Study

We further want to expand our purpose in establishing such business. As a business is out, its first
purpose is to gain profit and serve the public. Through this evaluation, we want to know what kind of business
is feasible or not, whether we can sustain this kind of business, and if it is a good investment or not. This study
primarily focuses on assessing a cafe with a study hub the companion to the public. We want to know if the
customers will get captivated by the place that serves light meals from 10:00 in the morning until 10:00 in the
evening daily. This café serves different kinds of light meals and drinks inspired by the countries around the
world.

Significance of the Study

The significance of creating this kind of business is to serve and help students who is struggling coping
with noise and because of the students or workers who have no internet connection or no peaceful environment
in their homes. Due to this,we had the idea to create or build a cafe/study hub. Due to the lack of quietness in
some cafes, we had conceptualized that this kind of venture will be practical and long-lasting. Even though there
are many other cafes, rest assured that we can offer a serene atmosphere, delicious foods, and a strong internet
connection.

Research Methodology

This part is used to research the business's viability, which offers light meals and drinks in a study hub.
We used a survey questionnaire to gather information from the target market of the study. Specific procedures
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will be done to get a sample from the population—first, the target market's total population consisting of
students, teachers, and employees. Then, we will use Solvin's formula to determine the sample size. Lastly, the
questionnaires will be distributed through a random sampling procedure.

The Background of the Business

The Business

Our business is about to be serving light meals and print, copy and scan services to the public. We have
chosen this kind of business because we saw students studying in fast food chains, which is very inconvenient
for them since the pace can be very noisy.  The café features cubicles for customers who wants to study or work
without being disturbed. There are also tables and chairs that cater groups and or pairs who plan to dine in the
café.

The Business Logo and Tagline

“Study Hub – Café the Companion to the Public”

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 Location of the Business

The location of our business is located at Bonifacio Street, Estaka, Dipolog City. We choose this
location since it is near the premises of SVCI and SMA.

The Proponent

Shown below is the personal profile of the proponent, along with her business profile.

Personal profile

Name : Vetta Archee A. Gallenero

Address: Magsaysay street, Miputak, Dipolog City

Age: 42 years old

Gender: Female

Name of Spouse: Luke Carlo Gallenero

No. of Child/Children: two (2)

The Customer

STUDENTS, TEACHER, AND EMPLOYEES

These are the target market for our business because these are the possible customer for our store as they
can be found in Saint Vincent's College and its neighboring buildings. It is easy to attract these target markets
because of its accommodating atmosphere and affordable price.

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The Management

SOLE PROPRIETORSHIP

Vetta Archee Gallenero

GENERAL MANAGER

EMPLOYEES

WAITER JANITOR
Cook

/ WASHER

GENERAL MANAGER
-Is the one in charge and responsible for the workforce and implements Rules and Regulations as well as
keeps the enterprise organized and well-managed. They're also the one that improves the efficiency and
increases profit while managing the budget and employing marketing strategies.

CASHIER
-Tracks the business inflows and outflows of the cash and reports the business's financial capabilities,
regulating the budget and keeping it stable as a result, issuing receipts. They're also responsible for the pricing
information by answering questions.

EMPLOYEES
-They're the ones who accommodate the customers, responsible for the workplace's safety and health and
execute the Top Management plans.

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WASHER
-It is responsible for cleaning the dishes, maintaining the kitchen clean, and keeping the area free of
clutter and well-organized.

JANITOR
-Is responsible for maintaining the cleanliness of the workplace.

WAITER
-They're the ones who are taking notes of the customers' orders as well as serving them.

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 Chapter II
MARKET STUDY

Introduction

The market study is the essential part of the entire Feasibility Study. It discusses the viability of the
proposed project by determining the market's needs and wants and then matching it with the appropriate
products and services that will satisfy those needs. A careful analysis of the demand and supply of the product is
needed to dictate the feasibility and profitability of the entire project.

This part should be given the first consideration because this information is necessary regarding the
target market, and the demand and supplies needed will be shown here from this study.

TABLE NO. 1 POPULATION AND RESPONDENTS

Name Population Sample Size

Senior High School Students 145 98

College Students 41 28

Employees 14 9

Total 200 135

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Solvin’s Formula:

N
1+ N e2

n = sample size

N = population size

= 145 + 41 + 14

= 200

e = margin of error

= 5%

200
n=
1+ 200¿ ¿

n = 133.333 respondents

=135 Total Number of Respondents

Senior High School Students 41 14

135 × = 27.675 135 × = 9.45
200 200
145
135 × = 97. 875
200 =28 respondents = 9 respondents

= 98 respondents

College Students Employees

About 15 questionnaires will be distributed to 9 an employee, 28 college students, and 98 senior high school
students. Respondents in Dipolog.

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Market Segmentation

In our business, our target market is within the locality of Dipolog City, such as the
students of SVCI, SMA, ZNHS, ABC, and employees around the city because these are people
who need the services, and they also have the resources to avail our products and services. From
time to time, students need printing services for some requirements and a place for group study,
especially a place with a strong internet connection for research and assignments. The Hideout is
the perfect and convenient place for students to study and compile their requirements, and that is
also the same for the employees around the city.

Target Market Segment Strategy

In order to do the business, to have a good and well-known name to the target markets,
the management should think of their own marketing strategies to certainly capture the
customers. The business should offer extraordinary products and services; this includes the
trademark of the business, which is a study hub that is being accommodated by a café that serves
light meals inspired from foreign countries. For these products and services, the target markets
might think that the offered products and services might be expensive, but our markets include
students. The business is certain to render the prices of the products and services to be affordable
for everybody.

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Survey Results and Analysis of Statistical Data

Table 1.0

Question no 1. Where do you usually like to

study?
House Library Café

34%

52%

14%

Analysis:

As shown in the pie graph above, there is a difference between the respondents that have
agreed to study at home and the ones who like to study at the library and at the cafés. 52% of the
respondents like to study at home because it seems convenient to study at home. 14% of the
respondents like to study at the library aside from it is free, libraries are based around academics.
34% of the respondents seem comfortable studying at a café obviously; you can choose your
favorite coffee and drink it in a pleasant ambiance which further concludes that the business
would cater to and also has a large possibility that some of these students and employee will
study or work inside the study hub – café.

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Table2.0

Question No. 2: What study envrionment do

you prefer?
Alone In a Group
with Background Music Quite Place

31%
40%

16%
14%

Analysis:

As shown by the chart above, most of the respondents want to study alone, and 16% of
the respondents want to study with background music to ease and calm the mood. 14% of the
respondents want to study with a group. It encourages members to think creatively and build
strong communication skills, which also helps in refining understanding of a certain material, but
31% of the respondents wanted to study in a quiet environment.

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Table 3.0

Question No.3 : What Distracts you the

most?
Television Noise Hunger Computer Games

8%
14%

13%

64%

Analysis:

As shown by the chart above, 65% of the respondents are unfocused with the noise
around them during studying or working. 14% got distracted by computer games that may hinder
your education or work. 13% of the respondents are distracted with hunger, and 8% of the
respondents are distracted because of the television

Table 4.0

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 Question No. 4: Do you want to have a study
hub here in Dipolog City?
Yes No

13%

87%

Analysis:

As shown in the pie graph above, there is a big difference between the respondents that
have agreed to say YES and the ones who said NO so. Therefore, we conclude that there are a
large number of students and employee who wants to have a study hub here in Dipolog City.

Table 5.0

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 Question No. 5: Are you willing to pay per
hour to stay in a study hub, rather than going
to café or other fast food chains?
Yes No

19%

82%

Analysis:

As shown above, 82% of the respondents are willing to pay per hour to stay in a study
hub – café rather than going cafe or other fast-food chains.

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Table 6.0

Question No. 6: How much are you willing to

pay?
P25 P30 P35 P40

11%
4%

27% 58%

Analysis:

As illustrated by the chart above, 58% of the respondents are willing to pay P25 per hour
to stay in a study – hub café. Some are willing to pay P30 and P40.

Table 7.0

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 Question No. 7: Do you like drinking coffee
while studying/working?
Yes No

21%

79%

Analysis

As shown by the pie chart above, 79% of the respondents like to drink coffee while
studying. Caffeine promotes alertness and helps to reduce fatigue, aiding the STM in the ability
to retain information.

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Table 8.0

Question No.8: How often do you drink cof -

fee?
Once a Day Twice a Day Thrice a Week Once a Month

19%

8%
52%

21%

Analysis :

It is shown above that 52% of the respondents drink coffee once a day which can cause of
short-term boost in energy levels, brain function, metabolic rate, and exercise performance.

Table 9.0

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 Question No.9 : Which coffee do you prefer?
Brewed Instant Espresso

26%

37%

37%

Analysis:

As shown in the pie graph above, most of the respondents prefer brewed or instant coffee,
and 26% of the respondents prefer espresso. All in all, the total is 100% of the total number of
individuals.

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Table 10.0

Question No.10 : Which light meal from Italy

do you prefer?
Butterscotch Budino Conti's Tiramisu

19%

5%

76%

Analysis:

As shown in the graph above, almost 80% of the respondents want Butterscotch. 5% of
the respondents want Budino from Italy, and 19% want a Conti's Tiramisu. All in all, the total is
100% of the total number of individuals.

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Table 11.0

Question No. 11 : Which light meal from

Paris do you prefer?
Macarons Eclairs Tarte and Fruits

29%

60%
11%

Analysis:

As shown in the pie graph above, 60% of the respondents prefer Macaroons. About 29%
prefer Tarte and fruits, and 11% prefer Eclairs. All in all, the total is 100% of the total number of
individuals.

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Table 12.0

Question No. 12 : Which light meal from

Korea do you prefer?
Honeybutter cake Matcha Greentea Cake Salted Egg

13%

28%
59%

Analysis:

As shown in the pie graph above, 59% want Honey butter cake. There are also 28%
respondents who prefer Matcha Greentea cake and 13% who wanted a salted egg. All in all, the
total is 100% of the total number of individuals.

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Table 13.0

Question No. 13 : Which light meal from

Japan do you prefer?
Doroyaki (Japanese Pancake Dango Japanese Cheesecake

30%

64%
6%

Analysis :

As shown in the pie graph above, 64% of the respondents prefer Japanese Cheesecake.
Some wanted Dango, and 30% of the respondents prefer Doroyaki, a Japanese pancake. All in
all, the total is 100% of the total number of individuals.

Market/Customer Segmentation

The business target market is the students searching for a perfect place to study. In
accordance with the analysis of the said market, it has been viewed in the dissimilar segments.

1.Geographical

The target market is the students, undergraduates, or graduates nearby. Strategically, it can gain
customers from SVCI, ABC, DMC, and ZNNHS and can even extend its scope of customers to
senior high school and college students most of the time; review hubs near schools are fully
occupied.

2.Demographic

This is open for all genders and ages. However, it is projected that the market will be composed
mostly of college students. Yet, it can be opened to lower levels such as Junior High School

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students and can range up to graduate, master, and doctorate students. After all, the fixed price to
avail the accommodation was set to match their allowances or other forms of income.

3.Behavioral

There is no certain time for the need to study. Some also have their preferred time to study. Due
to this behavior, the business will be open daily to welcome the customers for their study needs.
In addition, a continuous patronizing of the accommodation may give them loyalty rewards,
giving them the privilege to enjoy more of the services at a more affordable amount.

4.Psychographic

The target market is composed of students having related interests, to study for an exam, to meet
deadlines, or to be academically productive. They may be comprised of various opinions and
beliefs, yet they are seen to come with a common goal. To conclude, the business must be able to
adapt to their own differences, practicing respect, and show value.

Marketing Strategies

Making a good impression on the target market is the main goal of most businesses. In
order to achieve this goal, the business should have open strategies to market the product being
introduced to the public. Having a good quality of products is essential in compelling customers
to purchase products the business is establishing. This includes the taste of every food being
served should be identical to the original dish being imitated since the business is establishing
light meals that originated from different countries. Apart from having a good quality of food,
marketers should also consider the capabilities of their target market, which includes financial
assets. The business should guarantee every customer that their product and service being offered
is unique and is comforting. This business is offering a study hub that is being accommodated by
a café that serves light meals that originated from foreign countries. This kind of business will be
new to the ears of the public which the marketers are expecting that this will give an interest to
the public big enough for them to acquire the service and product being offered. The service and
product being offered are fit to the budget of every individual considered as part of the target
market.

Sales Distribution

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 In promoting a product, one should take a look through its price and its appearance to
boost its interest in the eyes of the customers. Ensuring the affordability and promoting the
products and or services being offered through social media platforms or direct sales can help the
products to be known in their target market. The business should have social media that provides
information about the products. The business should be established near its target market so that
it's easy to sell.

Product Costing and Pricing

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 Some of the raw Quantity needed Cost

Materials For a week

Baking Set Set P 450

Stainless Steel Spoon & pork/set 100
Serving plates Set 540
Mugs Set 370
Ink Set 260
Gas range electric ignition Equipment 10,000
Coffee Machine Equipment 2,000
Xerox machine Equipment 11,000
For brewing coffee beans pack 200
PLDT WIFI Equipment 1,600
Instant coffee 2 packs 150
Butter 200grams 200
Brown sugar 900grams 110
Eggs 2 tray 420
Vanilla 20ml 50
Salt 1kl 20
Baking powder 200grams 50
Food coloring red 20ml 45
Food coloring yellow 20ml 45
Honey 1 liter 100
Cream cheese 225g 180
Heavy cream 500ml 100
Cheese 330grams 100
Milk 5 liters 350
Cornstarch 400grams 60
Powdered sugar 1kl 70
Bond paper long 1ream 170
Bond paper short 1ream 170

COST OF DIRECT P28,940

MATERIALS:

Cost of direct labor (3x360) = 1080 for 3 people’s salary

Cost of others (petty cash fund) Electricity purse) 500

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Product Selling price
Brewed coffee P 60

Denomination:
Coffee beans P 15
Milk P 10
Brown sugar P5
Other incidental cost P 15
TOTAL P 45
MARKUP P 15
SELLING PRICE P 60

Product Selling Price

Instant Coffee P 40

Denomination:
Coffee P 10
Brown sugar P5
Incidental cost P 10
TOTAL P 25
MARK UP P 15
SELLING PRICE P 40

Product Selling Price

Colored print (photo) P8

Denomination
Ink P 3
Bond paper P 0.5
Incident cost P2
TOTAL P 5.5
MARK UP P2.5
SELLING PRICE P8

Colored print (text) P4

Denomination
Ink P 1
Bond paper P 0.5
TOTAL P 1.5
MARK UP P 2.5
4

Photocopy P 2

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Black/white P 3

Ink P 1
Bond paper P 0.5
TOTAL P 1.5
MARKUP P 1.5
3

Butterscotch 66grams=2 serving P 100

Denomination
½ cup butter P 15
2 cups brown sugar P5
2 teaspoon vanilla P3
3 eggs P 30
2 cups all-purpose flour P 10
2 teaspoons baking powder P5
½ teaspoon salt P2
Incidental cost P 10
TOTAL P 80
MARKUP P 20
SELLING PRICE P 100

Macaroons P5
2cups all-purpose flour P 10
1 2/3 cups powdered sugar P 10
5 eggs P 50
1 drop food coloring P2
1 cup sugar P3
Incidental cost P 10
TOTAL P 85
MARKUP P 20
P25pcs P 105

Honey butter cake P 20 per slices

Denomination
3cups all-purpose flour P 15

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2 teaspoon baking powder P5
1 teaspoon salt P2
1 cup butter P 15
½ cup honey P5
2 teaspoons vanilla P3
1 cup milk P 15
1 ½ cups sugar P3
4 eggs P 40
Incidental cost P 10
TOTAL P 103
MARKUP P 20
8 slices | 1 round cake P 123

Japanese cheesecake P 40

Denominations
7 tablespoons butter P 10
4 oz cream cheese P 15
½ milk P 10
8 eggs P 80
¼ cup flour(60g) P 10
¼ cup cornstarch P 10
13 egg whites P 130
2/3 cup granulated sugar(130g) P5
Incidental cost P 10
TOTAL P 280
MARKUP P 20
8 slices | 1 round cake P 300

SWOT Analysis

35
STRENGTH

We provide new and accommodating services.

We are able to give really good customer care with our services.

New and innovative

WEAKNESS

Our business is new and has little market presence.

Competitors do better than ours.

Vulnerable to vital staff being sick or leaving

OPPORTUNITY

The business sector is expanding with many future opportunities for success.

The local government wants to encourage local businesses.

Competitors may have a slow adaptation to new trends and technologies.

THREATS

There are a number of emerging competitors.

The fluctuation of ingredients prices

Porter's Five Forces Model

Suppliers Power

Number of suppliers which can give us good quality ingredients for a low price

Business ability to substitute, know the size of suppliers, and uniqueness of the service

36
Threats of Substitution

Number of substitute products available

Buyer tendency to substitute to available products

Buyer Power

Number of customers that are willing to buy products from the business

Buyers are sensitive to price change and not willing to spend much.

Buyer's ability to substitute products with new ones

Threats of New Entry

Barriers to entry

Experience is needed, but training easily available.

Time and cost of entry

Competitive Rivalry

Number and diversity of competitors

Differences in quality of products offered by the business and competitors

CHAPTER III

37
 FORMS OF BUSINESS ORGANIZATIONS

Each individual in the organization has different functions. Throughout the production
process, each individual would gain more trust and understanding to make the production more
efficient. As the production function fairly, a thing will fall into order making it operative.
Starting from the top management the investors can be the manager but she focuses more on the
conceptualization and on how to run the company for more effective planning while managers
make sure that everything is doing well and it’s functional, and the remaining employees and the
frontliners and socialize with the people.

 “The Hideout” company has designated each individual in their respective field of
expertise and here is are follows:

Owner

Job Description – the investor and make the decision making and responsible for
looking over the business.
Job Specification – every major decision comes through her and is also in charge of
conceptualization.

Manager

Job Description – the middle manager are the head or in charge at their own designated
departments which has three sectors namely the HR Department also the marketing and
accounting departments.
Manager – is the one who is in charge of the people or employees working process and
is mainly the one who implements the orders from the conceptualization of the top management.

38
Is the one who is in charge of the buying and selling activities and furthermore analyzes the
strategies and tactics for more profit. Is in charge of the inflows and outflows of cash and is also
the one who will determine on whatever the business is going profit.

Employees

Job Description – These are the workers of the business who specializes in technical
skills.
Job Specification – They are the ones who will execute and put into work the
conceptualize plan of the owner. they are valuable asset to the success of the business.

“The Hideout” company has also insurance given to it’s owner and employees which
means that deductions will be made monthly and it is now determine their take home pay.

Investor - P2,000.00 (per month) 

Manager - P2,400.00 (6days/P400per day) P9,600.00 (per month) 
Cashier - P2,280 (6days/P380per day) P9,120.00 (per month) 
Employees - P2,160 (6days/360per day) P8,640 (per month) 

Form of Business Organization 

39
        SOLE PROPRIETORSHIP 

The company chose this type of organization because it is very manageable and also at
the same time it is in direct control of the owner and all its elements and is legally accountable
for the finance business and all the assets of the business and a sole proprietorship is very easy to
start because it has no complication in organizing it and it involves quick decisions and prompt
actions because all the decisions came from the owner and yet it is very flexible and it has direct
maintenance over the business although these advantages are remarkable it has its own downside
whereas a business with sole proprietorship tends to have a limited capital it does not share with
a partner. Unlimited liability is also one of its downsides and with an admixture of these two it
may lead to a lack of continuity as this business is known to have the lowest survivability
compared to the ownerships and the business is expected to peak at a very limited size because
only one has absolute control in the business also the business is very prone to lack of
managerial expertise because the proprietors' mind is limited. Thus, leading to this limitation.

Administrative Policies 

To enable a productive workplace with minimal work-related risks and

miscommunications and insufficiency of worker cooperation and management, the company will
release a series of policies affiliated with sanctions to be implemented in all departments that will
guide the behavior and performance of every employee in further operations.

Administrative Policies with Sanctions:

***Every employee will be given three chances(warnings) until given heavy punishment.
Warnings will be renewed every 3 months.

Administrative Act No.1

40
 If the employee fails to maintain the quality of the product served for every costumer
he/she will be sanctioned for a sit-down discussion with the manager and will be given minor
disciplinary actions, if repeated 3 times the employee will immediately be terminated. 

Administrative Act No.2

If the employee mistreats the customer and is agitated in accompanying the customers
he/she will be sanctioned for a sit-down discussion with the manager and will be given minor
disciplinary actions,  if this behavior is still pursued after 3 warnings, termination is absolutely
necessary.

Administrative Act No.3

If the employee tends to report at the workplace beyond the work schedule the employee
will be sanctioned a deduction on the employee’s salary of 1% and after 3 warnings the
employee will be suspended for a week.

Administrative Act No.4

If the employee misses to wear proper uniform and fail to manage him/herself to be
presentable in the workplace he/she will be given 3 warnings and a sit-down discussion with the
manager and will be given minor disciplinary actions, if behavior is still being practiced after
warnings given the employee will face suspension for the next days.(Days of suspension will
depend on the situation)

Administrative Act No.5

If employee/employees will break anything that is own by the store, the value of the asset
damaged or broke will be deducted on the salary of the employee.

Administrative Act No.6

All employees must practice professionalism inside the workplace; this is to make sure
that the employees are at their best in accommodating customers. If employees fail to follow they
will be sanctioned by a sit-down discussion and will be given minor disciplinary actions, if
behavior is still practiced after warnings are given, the employee will be a suspended or
terminated if necessary.

41
Administrative Act No.7

Employees must not use company property for personal use, this will be considered as a
violation against the company therefor anyone who fails to follow this policy will sanctioned for
sit-down discussion with the manager and will be given minor disciplinary actions, if actions
remain practiced inside the workplace after warnings given, termination will be necessary.

Administrative Act No.8

Restrictions of smoking in public facilities are one of the most common policies
implemented in the city. The same policy will be followed inside the workplace, if violated after
given warnings, employee will be terminated immediately.

Administrative Act No.9

Personal calls is restricted in the workplace unless if urgent. Any employee who will use
the company telephone or accommodate personal calls while on duty will be sanctioned for a sit-
down discussion and will be given minor disciplinary actions, if behavior remains practiced after
warnings are given, the employee will be terminated immediately.

Administrative Act No.10

In upon working for the company, honesty must be in all of the employees especially
cashier’s core values. The company trusts all employees with regards to money. Therefore, the
company also expects the employee’s loyalty and honesty. If violated, with no warnings given,
the employee will immediately be terminated or sued if necessary.  

42
Benefits of Workers 

In this company, for our staff to be insured this is several insurances that they applied for.
For contingency and unexpected matters happen.

SSS MONTHLY PAG – IBIG PHILHEALTH Take Annual

Monthly
CONTRIBUTION MONTHLY
CONTRIBUTION Home salary
(12%) CONTRIBUTION
(3%) Pay
(2%)
Monthly
Investor 2,000.00 240.00 40.00 60.00 1,660.00 19,920.00
Manager 9,600.00 1,152.00 192.00 288.00 7,968.00 95,616.00
Cashier 9,120.00 1,094.40 182.40 273.60 7,569.60 90,835.20
Cook 8,640.00 1,036.80 172.80 259.20 7,171.20 86,054.40
Waiter/ 8,640.00 1,036.80 172.80 259.20 7,171.20 86,054.40
Washer
Janitor 8,640.00 1,036.80 172.80 259.20 7,171.20 86,054.40
Total 46,640.00 5,597.80 934.80 1,399.20 38,711.2 464,534.40
0

The deductions were based on the tables of SSS, PAG-IBIG, and PHILHEALTH based
on their salary rate also it is for their benefits because this is their insurance in the long run and
also serves as assurance when things might go the wrong way they have something to fall back
on.

43
Compensation Monthly 

Salary Rate Daily Pay Monthly Take Home Pay Annual Salary
Benefirs (per month)
Deductions

Investor 2,000.00 - 340.00 1,660.00 19,920

Manager 9,600.00 400.00 1,632.00 7,968.00 95,616.00

Cashier 9,120.00 380.00 1,550.40 7,569.60 90,835.20

Employee (3) 8,640.00 (*3) 360.00 (*3) 1,468.80(*3) 7,171.20(*3) 86,054.40(*3)

Total 29,360.00 1,140.00 4,991.20 24,368.80 464,534.40

44
 CHAPTER IV
TECHNICAL STUDY

For the employees to know what is convenient and best for the advantage of the business
and to build a strong decision, the business should use or make this flowchart.

Furthermore, it makes the business determine on which operation they can save more. All
of this starts with the customer inquiring about what is on the menu and decide on which they
prefer the most. If yes is their answer, the order now will go on the process. If no, employees will
offer or suggest another product.

In this business, we have various tools and equipment that help the employees process the
product easily and effectively.

Tools and Equipment

A. Kitchen Tools
      - Includes stainless steel spoon and fork, serving fork, spoon and plates, spatula, tongs,
plastic measuring cups and spoons, mugs. 

B. Electric Stove
     - Is composed of 4 burners each stove and a oven that can cook and at the same time it can
baked. 

C. Coffee Machine
      - For brewing coffee and it's convenient to use to fasten to work. 

D. Xerox Machine 
     - For customers especially students who want to photocopy something for them to lessen the
hassle if we put a Xerox machine inside our business. 

45
E. PLDT Wi-Fi
     - For customers who have no internet connection and to avoid boredom of the customers
when they dine in. 

F. Waste Container and Plastic Cellophane

    - Helps customers segregate their trash and lessen the hassle for garbage collectors and helps
the business environment maintain its cleanliness. 

All of the said tools and equipment above are really important to this business and this
equipment needs proper maintenance for durability.

Furnitures and Fixtures

A. Chairs
      -For customers comfortable seat that accommodate 20 customers at a time. 

B. Square Tables
     - For customers to have a perfect table to do their works and have a wider space to put all
their things. 

C. Cabinets and dividers 

    - To store the different ingredients and the tools to find it easily when the employees use it.

WASTE MANAGEMENT

Waste management (or waste disposal) is the activities and actions required to
manage waste from its inception to its final disposal. This includes the collection, transport,
treatment, and disposal of waste, together with monitoring and regulation of the waste
management process. Waste can be solid, liquid, or gaseous and each type has different methods
of disposal and management. Waste management deals with all types of waste, including
industrial, biological, and household. In some cases, waste can pose a threat to human health.
Waste is produced by human activity, for example, the extraction and processing of raw
materials. Waste management is intended to reduce the adverse effects of waste on
human health, the environment, or aesthetics. 

46
 Waste management practices are not uniform among countries (developed and
developing nations): regions (urban and rural areas), and residential and industrial sectors can all
take different approaches.

A large portion of waste management practices deals with municipal solid waste (MSW)

which is the bulk of the waste that is created by household, industrial, and commercial activity.

Below is an example of DTI registration 

47
 CHAPTER V
FINANCIAL STUDY

SUMMARY OF ASSUMPTIONS

The following assumptions pertain to the accounting assumptions considered in conducting this
study.

Five years is the projected number of operating years

 All sorts of income are on cash

 All sales are just 15% of the survey results due to lack of manpower and because it’s just a small
business.
 The purchases are just 6% of the survey results due to lack of manpower and because it’s just a
small business.
 Straight line method of depreciation is used.
 All expenses are paid by cash.
 One month SSS, Pag-Ibig and PhilHealth payable will be provided in the end of the year.
 Salaries are fixed over the years.

48
 Other expenses are increased based on the inflation rate of the National Economic Development
Authority over the five year period.
 The entity received an interest income from the cash deposited in bank.
 All assets are depreciated for six years.
 The annual sales shall increase by 3% the growth rate of the target population.
 The owner will withdraw P200, 000.00 for personal use each year.

49
 The Hideout Company
STATEMENT OF FINANCIAL PERFORAMANCE
FIVE YEAR PROJECTION
(IN PHILIPPINE PESO)

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

Year
Revenue:
Sales ₱- ₱ 2,505,600.00 ₱ 2 ,808,000.00 ₱ 2,289,600.00 ₱ 2,796,480 ₱ 2,761,920
Cost of Goods Sold ₱- ₱ 734,400.00 ₱ 780,000.00 ₱ 808,800.00 ₱ 818,832 ₱ 822,144
Gross Profit/ Gross ₱- ₱ 734,400.00 ₱ 2,028,000.00 ₱ 1,480,800.00 ₱ 1,977,648 ₱1,939,776
Margin

Less Operating
Expenses:
Salaries Expense ₱- ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40
Utilities Expense ₱- ₱ 22,800.00 ₱ 24,210.00 ₱ 24,210.00 ₱ 24,320.00 ₱ 24,480.00
Supplies Expense ₱- ₱ 125,000.00 ₱ 127,112.00 ₱ 127,112.00 ₱ 128,128.00 ₱129,085.00
Transportation Expense ₱ - 800.00 ₱ 1,000.00 ₱ 1,215.00 ₱1,215.00 ₱ 1,375.00 ₱ 1,405.00
Depreciation Expense ₱ - 3,708.33 ₱ 4,166.67 ₱ 4,166.67 ₱ 4,166.67 ₱ 4,166.67 ₱4,166.67
Permits and Licenses ₱ - 6,270.00 ₱ 6,270.00 ₱ 7,454.33 ₱4,150.00 ₱ 7,551.36 ₱ 7,652.97
Repairs and ₱ - 15,000.00 ₱ 3,800.00 ₱ 4,255.00 ₱48,480.00 ₱ 5,416.35 ₱ 5,581.55
Maintenance
13 month pay
th
₱- ₱ 48,480.00 ₱ 48,480.00 ₱ 48,480.00 ₱ 48,480.00 ₱ 48,480.00
SSS Contribution ₱- ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60
Pag-Ibig Contribution ₱- ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40
PhilHealth ₱- ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60
Contribution
Business Insurance ₱ - 5,000.00 ₱ 10,000.00 ₱ 10,309.00 ₱ 10,618.00 ₱ 10,342.13 ₱ 11,275.86
Total Operating Expense ₱ - 30,778.33 ₱ 781,196.67 ₱ 785,043.06 ₱ 787,191.06 ₱ 790,059.51 ₱ 791,807.05

50
Net Income Before ₱ - 30,778.33 ₱ 990,003.33 ₱ 1,242,956.94 ₱ 693,609.94 ₱ 1,187,588.49 ₱ 1,147,968.95
Pay
Add Interest Income ₱ 10,000.00 ₱ 4,844.11 ₱ 6,644.96 ₱ 8,510.91 ₱ 10,850.01
Net Income/Loss ₱ - 30,778.33 ₱ 1,000,003.00 ₱ 1,247,801.06 ₱ 700,253.69 ₱ 1,196,099.40 ₱ 1,158,819.96

51
 The Hideout Company
STATEMENT OF CHANGES IN OWNER’S EQUITY
FIVE YEAR PROJECTION
(IN PHILIPPINE PESO)

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

Year
Gallenero, Capital ₱ 100,000.00 ₱ 69, 221.67 ₱ 869,225.00 ₱ 1,197,026.05 ₱ 2,417,026.05 ₱ 3,413,125.45
(Beginning)
Net Income (Loss) ₱ - 30,778.33 ₱ 1,000,003.33 ₱ 1,247,801.05 ₱ 700,000.00 ₱ 1,196,099.40 ₱ 1,158,819.96
Total ₱ 69, 221.67 ₱ 1,069,225.00 ₱ 2,117,026.05 ₱ 2,617,026.05 ₱ 3,613,125.45 ₱ 4,571,945.41
Less: Drawing ₱- ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00
Gallenero, Capital ₱ 69, 221.67 ₱ 869,225.00 ₱ 1,197,026.05 ₱ 2,417,026.05 ₱ 3,413,125.45 ₱ 4,371,945.41
(Ending)

52
 The Hideout Company
STATEMENT OF FINANCIAL POSITION
FIVE YEAR PROJECTION
(IN PHILIPPINE PESO)

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

Year
Assets
Current Assets
Cash and Cash ₱ 24,126.67 ₱ 1,000,003.33 ₱ 2,082,656.05 ₱ 1,423,101.00 ₱ 1,452,132.38 ₱ 1,464,557.05
Equivalents
Raw Materials ₱- ₱ 10,000.00 ₱11,450.00 ₱ 12,500.00 ₱ 11,385 ₱ 10,942.00
Inventory, End
Total Current Assets ₱ 24,126.67 ₱1,010,002.33 ₱ 2,094,106.05 ₱ 1,435,601.00 ₱ 1,463,517.38 ₱ 1,475,481.05

Non-Current Assets
Equipment – Net ₱ 26,175.00 ₱ 37,220.07 ₱ 28,746 ₱ 26,945.00 ₱ 25,812.00 ₱ 24,718.00
Furniture and Fixtures ₱ 18,920.00 ₱ 22,001.60 ₱ 21,174 ₱ 19,723.00 ₱18,742.00 ₱ 18,520.00
Net
Total Non-Current ₱ 45,095.00 ₱ 59,221.67 ₱ 49,920.00 ₱ 46,668.00 ₱ 44,554.00 ₱ 43,238.00
Assets

Total Assets ₱ 69,111.67 ₱ 1,069,225.00 ₱ 2,144,026.05 ₱ 1,482,269.00 ₱ 1,508,071.38 ₱ 1,518,719.05

Liabilities
Current Liabilities
SSS Premium Payable ₱- ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60
Pag-Ibig Premium ₱- ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60
Payable
PhilHealth Premium ₱- ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40
Payable
Total Current Liabilities ₱- ₱ 95,145.60 ₱ 95,145.60 ₱ 95,145.60 ₱ 95,145.60 ₱ 95,145.60

53
Total Liabilities ₱- ₱ 95,145.60 ₱ 95,145.60 ₱ 95,145.60 ₱ 95,145.60 ₱ 95,145.60

Owner’s Equity
Gallenero Capital ₱ 69, 221.67 ₱ 974,079.40 ₱ 2,048,880.00 ₱ 1,387,123.40 ₱ 1,412,925.78 ₱ 1,423,573.45
Total Owner’s Equity ₱ 69,221.67 ₱ 974,079.40 ₱ 2,048,880.00 ₱ 1,387,123.40 ₱ 1,412,925.78 ₱ 1,423,573.45

Total Liabilities and ₱ 69, 221.67 ₱ 1,069,225.00 ₱ 2,144,026.05 ₱ 1,482,269.00 ₱ 1,508,071.38 ₱ 1,518,719.05
Owner’s Equity

54
 The Hideout Company
STATEMENT OF CASHFLOWS
FIVE YEAR PROJECTION
(IN PHILIPPINE PESO)

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

Year
Cash Flows For Operating
Activities
Cash Sales From ₱- ₱ 2,505,600 ₱ 2,808,000.00 ₱ 2,289,600.00 ₱ 2,796,480.00 ₱ 2,761,920
Customers
Cash Received From ₱- ₱ 10,000 ₱ 780,000.00 ₱ 808,800.00 ₱ 818,832.00 ₱ 822,144
Interest Income
Cash Purchases for ₱- ₱ 359,584.99 ₱ 1,447,692.99 ₱ 789,242 ₱ 817,519 ₱ 829,512
Suppliers
Cash Purchases for ₱- ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40
Employees
Cash Purchases for ₱- ₱ 22,800 ₱ 23,450.00 ₱ 24,210.00 ₱ 24,320 ₱ 24,480
Utilities
Cash Purchases for ₱- ₱ 125,000 ₱ 126,330.00 ₱ 127,112.00 ₱ 128,128.00 ₱ 129,085.00
Supplies
Cash Payment For ₱ 800.00 ₱ 1,000 ₱ 1,120.00 ₱ 1,215.00 ₱ 1,375.00 ₱ 1,405.00
Transportation
Cash Payment For ₱ - 3,708.33 ₱ 4,166.67 ₱ 4,166.67 ₱ 4,166.67 ₱ 4,166.67 ₱4,166.67
Depreciation Expense
Cash Payment For Permits ₱ -6,270.00 ₱ -6,270.00 ₱ 7,357.39 ₱ 7,454.33 ₱ 7,551.36 ₱ 7,652.97
And Licenses
Cash Payment For Repairs ₱ -15,000.00 ₱ 3,800 ₱ 4,150.00 ₱ 4,225 ₱ 5,416.35 ₱ 5,581.55
And Maintenance
Cash Payment For 13th ₱- ₱ 48,480 ₱48,480.00 ₱ 48,480.00 ₱ 48,480.00 ₱ 48,480.00
Month Pay
Cash Payment For SSS ₱- ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60 ₱ 67,161.60
Cash Payment For Pag-Ibig ₱- ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40 ₱ 16,790.40

55
Cash Payment For ₱- ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60 ₱ 11,193.60
Philhealth
Cash Payment For ₱ -5,000.00 ₱ 10,000.00 ₱ 10,309.00 ₱ 10,618.00 ₱ 10,942.00 ₱ 11,275.86
Insurance
₱ - 30,778.33 ₱ 1,140,781.61 ₱ 2,232,736.05 ₱ 1,576,433.00 ₱ 1,607,578.38 ₱ 1,621,319.67
Net Cash Provided By ₱ - 30,778.33 ₱ 1,140,781.61 ₱ 2,232,736.05 ₱ 1,576,433.00 ₱ 1,607,578.38 ₱ 1,621,319.67
(Used In) Operating
Activities

Cash Flows From

Investing Activities
Payment For Purchase Of ₱ - 26,175.00 ₱ 37,220.05 ₱ 28,746 ₱ 26,945.00 ₱ 25,812.00 ₱ 24,718.00
Equipment
Payment For Purchase Of ₱ - 18,920.00 ₱ 22,001.67 ₱ 21,174 ₱ 19,723.00 ₱ 18,742.00 ₱ 18,520.00
Furniture & Fixtures
Net Cash Provided (Used ₱ - 45,095.00 ₱ 59,221.72 ₱ 49,920 ₱ 46,668.00 ₱ 44,554.00 ₱ 43,238.00
In) Investing Activities

Cash Flows From

Financing Activities
Proceeds From The ₱ - 100,000.00 ₱ 200,000.00 ₱200,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00
Investment By Owner
Payment For Withdrawal ₱-
Net Cash Provided By ₱ - 100,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00 ₱ 200,000.00
(Used In) Financing
Activities

Net Increase (Decrease) In ₱ 24, 126.67 ₱ 1,000,003.33 ₱ 2,082,656.05 ₱ 1,423,101.00 ₱ 1,452,132.38 ₱ 1,464,557.05
Cash Account
Cash Balance – Beginning ₱ 24,126.67 ₱ 1,024,130.00 ₱ 3,106,786.05 ₱ 4,529,887.05 ₱ 5,982,019.43
Cash Balance – Ending ₱ 24, 126.67 ₱ 1,024,130.00 ₱ 3,106,786.05 ₱ 4,529,887.00 ₱ 5,982,019.43 ₱ 7,446,576.48

56
Sales

Products: Year 1 Year 2 Year 3 Year 4 Year 5

Check In ₱1,036,800 ₱1,123,200 ₱1,022,400 ₱898,560 ₱927,360
Printing ₱50,400 ₱138,200 ₱43,200 ₱119,520 ₱97,920
Photocopy ₱36,000 ₱63,360 ₱28,800 ₱93,600 ₱90,720
Daily Drip ₱77,760 ₱103,680 ₱51,840 ₱116,640 ₱103,680
Cafe Latte ₱38,880 ₱64,800 ₱64,800 ₱90,720 ₱64,800
Cappuccino ₱25,820 ₱51,840 ₱38,880 ₱64,800 ₱77,760
Cafe Mocha ₱51,840 ₱51,840 ₱38,880 ₱77,760 ₱64,800
Iced Coffee ₱51,840 ₱64,800 ₱51,840 ₱116,640 ₱103,680
Iced Tea ₱51,840 ₱77,760 ₱36,000 ₱93,600 ₱79,200
Banana Smoothie ₱95,040 ₱63,360 ₱63,360 ₱63,360 ₱95,040
Lemonade ₱47,520 ₱77,760 ₱63,360 ₱79,200 ₱79,200
Smoothie
Mango Smoothie ₱63,360 ₱126,720 ₱79,200 ₱110,880 ₱126,720
Basket of Chips ₱383,040 ₱300,960 ₱273,600 ₱355,680 ₱328,320
Salsa ₱171,360 ₱195,840 ₱171,360 ₱171,360 ₱146,880
Butterscotch ₱60,480 ₱40,320 ₱50,400 ₱50,400 ₱60,480
Conti’s Tiramisu ₱77,760 ₱103,680 ₱64,800 ₱90,720 ₱103,680
Macaroons ₱69,120 ₱69,120 ₱43,200 ₱86,400 ₱82,080
Honey Butter Cake ₱77,760 ₱51,840 ₱64,800 ₱51,840 ₱77,760
Japanese ₱38,880 ₱38,880 ₱38,800 ₱64,800 ₱51,840
Cheesecake
Total ₱2,505,500.00 ₱2,807,960.00 ₱2,289,520.00 ₱2,796,480.00 ₱2,761,920.00

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Salaries Expense

Year 1 Year 2 Year 3 Year 4 Year 5

Investor ₱ 19,920.00 ₱ 19,920.00 ₱ 19,920.00 ₱ 19,920.00 ₱ 19,920.00
Manager ₱ 95,616.00 ₱ 95,616.00 ₱ 95,616.00 ₱ 95,616.00 ₱ 95,616.00
Cashier ₱ 90,835.20 ₱ 90,835.20 ₱ 90,835.20 ₱ 90,835.20 ₱ 90,835.20
Employees (3) ₱ 258,163.20 ₱ 259,163.20 ₱ 259,163.20 ₱ 259,163.20 ₱ 259,163.20
Total ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40 ₱ 464,534.40

Utilities Expense

Year 1 Year 2 Year 3 Year 4 Year 5

Water ₱ 3,000.00 ₱ 3,200.00 ₱ 3,245.00 ₱ 3,345.00 ₱ 3,365.00
Electricity ₱ 19,800.00 ₱ 21,010.00 ₱ 20,965.00 ₱ 21,075.00 ₱ 21,115.00
Total ₱ 22,800.00 ₱ 24,210.00 ₱ 24,210.00 ₱ 24,420 ₱ 24,480.00

Supplies Expense

Year 1 Year 2 Year 3 Year 4 Year 5

Raw Goods/ ₱ 112,400 ₱ 118,692.00 ₱ 119,902.00 ₱ 121,278.00 ₱ 123,415.00
Condiments
Utensils ₱ 12,600 ₱ 8,420.00 ₱ 7,210.00 ₱ 6,850.00 ₱ 5,670.00
Total ₱ 125,000.00 ₱ 127,112.00 ₱ 127,112.00 ₱ 128,128.00 ₱ 129,085.00
Depreciation Expense

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 Annual Pre-oprating Pre- Year 1 Year 2 Year 3 Year 4 Year 5
Dep’n Dep’n Operating
(Equipment) ₱1,666.67 ₱833.33 ₱9,166.67 ₱7,500.00 5,833.33 4,166.67 2,500.00 833.33
Cooking Utensils
₱10,000-0/6years
(Equipment) Electric 1,250.00 625.00 6,875.00 5,625.00 4,375.00 3,125.00 1,875.00 625.00
Stove ₱7,500/6years
Furniture & Fixtures 4,166.67 2,083.33 22,916.67 18,750.00 14,583.33 10,416.67 6,250.00 2,083.33
tables &chair
₱25,000-0/6years
(Equipment) LPG 333.33 166.67 1,833.33 1,500.00 1,166.67 833.33 500.00 166.67
tank 15kg.
₱2,000/6years
7,416.67 3,708.33 40,791.67 33,375.00 25,958.33 18,541.00 11,125.00 3,708.33

Transportation Expense

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 Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5
Year
Transportation Expense 800.00 1,000.00 1,215.00 1,215.00 1,375.00 1,405.00

SSS/PAG-IBIG/PHILHEALTH

SSS MONTHLY PAG – IBIG

Monthly CONTRIBUTION MONTHLY PHILHEALTH Take Home Pay Annual salary

(12%) CONTRIBUTION CONTRIBUTION (3%) Monthly
(2%)
Investor 2,000.00 240.00 40.00 60.00 1,660.00 19,920.00

Manager 9,600.00 1,152.00 192.00 288.00 7,968.00 95,616.00

Cashier 9,120.00 1,094.40 182.40 273.60 7,569.60 90,835.20

Cook 8,640.00 1,036.80 172.80 259.20 7,171.20 86,054.40

Waiter/Washer 8,640.00 1,036.80 172.80 259.20 7,171.20 86,054.40

Janitor 8,640.00 1,036.80 172.80 259.20 7,171.20 86,054.40

Total 46,640.00 5,597.80 934.80 1,399.20 38,711.20 464,534.40

Repairs and Maintenance

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 Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5
Year
Repairs and 15,000.00 3,800.00 4,255.00 48,480.00 5,416.34 5,581.55
Maintenance
Total 15,000.00 3,800.00 4,255.00 48,480.00 5,416.34 5,581.55

Cash and Cash Equivalents

Pre-Operating Year 1 Year 2 Year 3 Year 4 Year 5

Year
Petty Cash Fund 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Cash in Bank 19,126.67 995,003.33 2,077,656.05 1,418,101.00 1,447,132.38 1,459,557.05
Total 24,126.67 1,000,003.33 2,082,656.05 1,423,101.00 1,452,132.38 1,464,557.05

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 Chapter VI

This chapter includes the study about the economy and society which affects the
business’ productivity. The following are the socio-economic desirability; this is the impact of
the business in the society and the economy, national and local government, and the community.

SOCIO-ECONOMIC DESIRABILITY

The potential business called “The hideout” to be established near Saint Vincent’s
College Incorporated Main Campus has a great impact on the society, especially to the target
market.

The business’ primary target market is the students in all the schools and employees close
to Saint Vincent’s College Incorporated Main Campus. It will help them to have a healthier and
more productive workplace that will accompany them will light meals inspired by the top selling
desserts in foreign countries. the business also offer cubicles for all customers to ensure their
privacy.

NATIONAL AND LOCAL GOVERNMENT

The business will fulfil its obligation by paying taxes promptly and accurately. Also, the
business can help people in times of calamity by giving donations.

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COMMUNITY

The business will help generate the income for the community and at the same time,
cultivate creativity of the Filipino people. The proposed project aims to help our localities and
farmers of the country and to give healthy lifestyle to the people. Nowadays it is important that
small entrepreneurs should realize the worth innovating and starting a business that would
largely contribute to the socio-economic development of the country.

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 CHAPTER VII
SUMMARY OF FINDINGS, CONCLUSIONS,
AND RECOMMENDATIONS

Our study focuses on the marketing aspect of the business. It contains different relevant
information of the proposed business and also the initial findings such as the respondents which
are included in our market segmentation because the business circulates around the population of
different schools near the vicinity of the business and some workplaces. Creating graphs in order
to specify the statistical data will be rendered in our study in order to have a better insight upon
the sets of our findings.

MARKET STUDY

Based on our market study, we are able to gather both qualitative and quantitative data
from the Population and Respondents which we separated into three groups; Senior High School
students, College students, and Employees. By using the Slovin’s Formula and a margin of error
which is 5%, we get a 98 sample size from the Senior High School student population, 28 sample
size from the College students, and 9 sample size from employees, distributing ???
questionnaires to these specific groups of people in a form of survey, generating data in the
process.

Regarding the questions of the survey questionnaire, we have made 13 questions to be

answered by the sample size that we selected earlier. For the first question, we have determined
that 52% of the answers like to study in their house, 34% in café and 14% in the library;
therefore, this concludes that the 34% of the respondents finds café as a liking for a comfortable
study place. For the second question, respondents made to choose whether Alone, In a Group,
with Background Music, and Quiet Place, and most of the respondents have chosen Alone with
39%, followed by Quiet Place by 31%, with Background Music 16%, and the least choice, In a
Group, with 14%. For the third question, 65% are distracted from the Noise, followed by
Computer Games 14%, Hunger 13%, and Television 8%. For the fourth question, 87% of the
respondents have agreed to have a study hub here in Dipolog City while the remaining

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percentage never agrees on it. For the fifth question, 81% agrees that they are willing to pay per
hour of stay in the study hub while the remaining percentage never agrees on it. For the sixth
question, respondents are to choose prices for the hourly pay of the study hub (P25, P30, P35,
P40) and 58% of the respondents are willing to pay P25, 27% for P30, 11% for P40, and 4% for
P35. For the seventh question, 79% of respondents likes to drink coffee while studying/working
and 21% doesn’t agree with it. For the eighth question, respondents are to choose how often they
drink coffee (Once a Day, Twice a Day, Thrice a Week, Once in a Month) and 52% of the
respondents drinks coffee a day, followed by 21% who drinks coffee twice in a day, 19% for
those once in a month, and 8% for those who drinks thrice a week. For the ninth question,
respondents are to choose which coffee they prefer, Brewed, Instant, Espresso, which the survey
results in 37% Brewed, 37% Instant, and 26% Espresso. For the tenth question, light meals from
Italy, 76% likes Butterscotch, 19% Conti’s Tiramisu, and 5% likes Budino. For the eleventh
question, light meals from Paris, 60% like Macarons, followed by Tarte and Fruits 29%, and
Eclairs 11%. For the twelfth question, light meals from Korea, 59% likes Honeybutter Cake,
28% likes Matcha Greentea Cake, and 13% likes Salted Egg. For the last question, light meals
from Japan, 64% likes Japanese Cheesecake, 30% likes Doroyaki (Japanese Pancake), and 6%
likes Dango.  

MANAGEMENT STUDY

In our business, the management is composed of General Manager and Employees which
are the Cashier, Waiter, Washer, Janitor, and Cook. The General Manager is the one in-charge of
manpower for guiding and responsible for the workforce and implements “Rules and
Regulations” as well as keeps the enterprise organized and well managed. 

The Employees; Cashier tracks the business inflows and outflows of the cash and reports
the business financial capabilities, regulating the budget and keeping it stable as a result, issuing
receipts, 

Waiters are the one who accommodates the customers and taking notes of customer’s
orders as well as serving them.

Washer is responsible for cleaning the dishes, maintaining the kitchen clean, and keeping
the area free of clutter and well-organized.   

Janitor is responsible for maintaining the cleanliness of the workplace.

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 Cook is responsible for the making of food and drinks that are being served to the
customers.

In order for a business to work and become successful, each position should be given to a
well deserved and qualified individual to compliment the position he or she is in. Strength and
cooperation is needed to establish a better and innovative successful business.

TECHNICAL STUDY

     Furthermore, it makes the business determine on which of the operation they can save
more by having a good flowchart of how the products and services evolve and move through the
business. All of this starts from the customer inquiring on what is in the menu and decide on
which they prefer the most. The business should always consider the quality of the supplies,
tools and equipments, well-being of the employees, the cleanliness of the business environment
and technologies in marketing the product and services. The purchase of the tools, equipments,
and supplies that are needed for the café business are being determined of the corresponding
prices and its quality. The success of this business lies within its own environment and workforce
and researchers plan for the longevity of the business in the market which aims survive in the
small market place.  

RECOMMENDATION

After bearing in mind the significant factors in the study that we conducted such factors
like the marketing, financial, technical, management, and socio-economic study, it is therefore
recommended  that “The Hideout; Study Hub – Café the Companion to the Public” will be
pursued and the business establishes at Bonifacio Street, Estaka, Dipolog City near SVCI and
SMA.

CONCLUSION

Based on the research and study that we conducted, we therefore conclude that our
business is feasible and viable in the market.

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