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INTRODUCTION

Technology is at its phase wherein it can reach even the remotest part of a
community. For instance, through the advanced computer and information
technology, many people can have instant access to so many things through the
Internet. This enables them to act and interact and to conduct transactions with
ease.
In the Philippines, however, the computer and information technology is
still far from thriving, particularly in the aspect of Internet speed and reliability and
in the cost of computers, tablets, mobile phones, etc. These can be attributed to
several factors such as the fact that Internet Service Providers (ISPs) in the
country is in the pint-size competition. This allows them to manipulate Internet
speed and demand for a high fee without intervention from other parties. On the
other hand, the high cost of computing devices is basically due to the countrys
incapability to manufacture them domestically.
Thus, many people are still far from being connected especially those
living below the poverty line but are still in need of this basic service. In an article
released on June 3, 2011, the United Nations declared Internet access as a basic
human right. It means that all people, across all economic status, shall have
equal access to this need.

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BACKGROUND OF THE STUDY

Since the increase in numbers of people who are in need of computer
knowledge and assistance is growing by the day, the demand for computer
shops also increases. As time goes by even when more people gain access to
computers at their homes, cooped up in front of their computers playing alone,
they will still look for a place where they can hang out with friends who also have
the same hobbies as them, and that is what this company will provide them with,
a place where computer enthusiasts can hangout, play computer games as long
as they can and take a break whenever they want and be able to continue where
they left-off. And the potential target market of the business, the students,
bystanders and people who just wants a place to hang-out while using computers
or just browsing the internet using their gadgets to pass the time.
The partners have discovered that 56% of the potential customers have
computers at home, but 44% have no computer which is a relatively huge
percentage, and also a lot of those that have a computer at home are potential
customers that want to rent a computer for either fun and games or serious
matters such as document editing. And another possible source of income is
from the 86% that have tablets/smart phones that wants to hang-out at a place
with fast internet connection at an affordable cost. Even though 68% of the
possible customers may have connection at their home, a lot of them suffers
from slow internet that causes lag, and thus interrupts them at whatever they are
doing which causes them problems, and are therefore looking for a place where
they will not experience such inconvenience.

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CHAPTER I
Company Summary

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I.

Company Name
The Hive Cyber Caf
The company derived its name from the habitat of bees the hive. It
believes the hive truly represents what the company aims for in a business
- that is, to bring together, customers with different interests into a habitat
where they can play games, connect to peers via the social media, send
emails, do business transactions or simply just hang out with friends all
these, can be done harmoniously in a place where in the Philippines, is
very unusual.

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II.

Company Vision and Mission

Vision
To be the leading caf that provides customers with the maximum
cyber experience and high value for entertainment.
Mission
To amass customers into a place with different atmosphere where
harmonization and socialization will spawn beyond customer diversity by
providing an innovative, chic and one-of-a-kind setting and with services
that meet customer satisfaction.

Page | 6

III.

Company Logo

In order for the business to be distinguished easily, the company came

up with a single yet remarkable logo.
First, the colors of the logo are inspired by the colors of the bees. The
richly bright yellow color signifies cheerfulness and shall be exemplified by
the employees of the business towards every customer while the black
color signifies the strong dedication of the people who runs the business.
Second, the shape of the logo corresponds to the tiny units of the hive.
It signifies the very entity which is part of a huge market.
And lastly, the bold and huge H in the middle of the logo means the
Hive the name the business carries.

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IV.

Company Tagline

The company believes that customer-oriented employees are one of

the key drivers in the success of a business. Thus, the tagline, We Value
Your Entertainment encapsulates what the company values most
customer satisfaction. The customers entertainment is the companys
business.

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V.

Company Location Map

The domicile and office of the business shall be at the Ground Floor
Claveria Plaza Building, Circumferential Road, Barangay Dalig, Antipolo
City, Rizal, Philippines.

VI.

Type of Business Organization

The company shall be organized as a partnership form of business
organization. A partnership is a contract whereby two or more persons
bind themselves to contribute money, property, or industry to a common
fund, with the intention of dividing the profit among themselves.
In a partnership, owners are called partners and are personally liable
for the debts of the business and the management of the business
depends on the agreement of the partners.

VII.

Definition of Terms

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Arbitration a process of settling an argument or disagreement in which

the people or groups on both sides present their opinions and ideas to a
third person or group.
Chic fashionable style.
Connected

having

useful

social,

professional,

or

commercial

relationships.
Customer-oriented making customers and their needs a primary focus
of ones actions.
Encapsulate to show or express the main idea or quality of (something)
in a brief way.
Internet Service Provider a company which provides the services that
make it possible for people using computers to connect to the Internet and
to send and receive e-mail.
Marketing metrics quantitative measurements of a specific market.
Marketing plan is a comprehensive document or blueprint that outlines
a companys advertising and marketing efforts for the coming year.
Positioning the place where someone or something should be.
Proforma done or existing as something that is usual or required but
that has little true meaning of importance.
Rampant flourishing or spreading unchecked.

P a g e | 10

Savvy shrewdness and practical knowledge especially in politics or

business.
Segmentation the process of dividing something into parts or
segments.
Technology a machine, piece of equipment, method, etc., that is
created by technology.

VIII. Gantt Chart

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The Business Plan Proposal was made in January 6 until January 10.
Market Study was made in January 13 until January 25.
Layout Planning was made in February 1 until February 12.
Site Research was made in February 10 until February 20.
Permits & Licenses was made in February 23 to 26 and was resumed on

March 1 until march 10.

Purchasing was made in March 14 until the end of March.
Server Setup was made in April 4 until April 10.
Testing was made in April 10 until April 20.
Staff Recruitment was made in April 10 until the end of April.
Advertising was made in the whole month of May.
Dry run was made in May 1 to May 16.
Pre-opening Preparation was made in May 17 until May 30.
Grand Opening of the business commenced on the month of June.

P a g e | 12

CHAPTER II
Market Study

Market Study
A marketing plan or marketing study is a written document composed of
an analysis of the current marketing situation, opportunities and threats for the
firm, marketing objectives and strategy specified in terms of the four Ps, action
programs, and projected or proforma income (and other financial) statements.

P a g e | 13

The three major phases of the marketing plan are planning, implementation and
control.1
A marketing plan entails five steps, depicted in Exhibit 2.1. In Step 1 of the
planning phase, marketing executives, in conjunction with other top managers,
define the mission and/or vision of the business. For the second step, they
evaluate the situation by assessing how various players, both in and outside the
organization, affect the firms potential for success (Step 2). In the
implementation phase, marketing managers identify and evaluate different
opportunities by engaging in a process known as segmentation, targeting, and
positioning. They then are responsible for implementing the marketing mix using
the four Ps (Step 4). Finally, the control phase entails evaluating the performance
of the marketing metrics and taking any necessary corrective actions (Step 5). 2

1 Marketing, Grewal/Levy, p.31

2 Ibid., p.32

P a g e | 14

Exhibit 2.1 The Marketing Plan

The first step in the preparation of a marketing plan is to define the vision
and mission of the business. For a business to thrive in a vast and competitive
market, it has to have governing principles and aspirations that will set out what
its purpose and objectives are. This necessitates the company to formulate its
own vision and mission statements. A vision statement presents the firms
strategic intent that focuses the energies and resources of the company on
achieving a desirable future. On the other hand, the mission statement embodies
the business philosophy of the firms strategic decision makers, implies the
image the firm seeks to project, reflects the firms self-concept, and indicates the

P a g e | 15

firms principal product or service areas and the primary customer needs the firm
will attempt to satisfy.3
The second step is to conduct a situation analysis using a SWOT analysis that
assesses the both the internal environment with regard to its Strengths and
Weaknesses and the external environment in terms of its Opportunities and
Threats. Additionally, it should assess the opportunities and uncertainties of the
marketplace due to changes in Cultural, Demographic, Social, Technological,
Economic and Political forces (CDSTEP).4
After completing the situation analysis, the next step is to identify and evaluate
opportunities for increasing sales and profits using STP (segmentation, targeting
and positioning). With STP, the firm first divides the marketplace into subgroups
or segments, determines which of those segments it should pursue or target, and
finally decides how it should position its products and services to best meet the
needs of those chosen targets.5
When the firm has identified and evaluated different growth opportunities by
performing an STP analysis, it has to implement the actual marketing mix
product, price, promotion and place for each product and service on the basis
of what they believe their target markets will value.

3 Strategic Management, Pearce II/Robinson, p.23

4 Marketing, Grewal/Levy, p.33
5 Ibid., p.35
6 Ibid., p.37

P a g e | 16

The final step in the planning process includes evaluating the results of the
strategy and implementation program using marketing metrics. A metric is a
measuring system that quantifies a trend, dynamic, or characteristic. Metrics are
used to explain why things happened and to project the future.

Company Vision, Mission and Objectives

Vision
To be the leading caf that provides customers with the maximum
cyber experience and high value for entertainment.

Mission
To amass customers into a place with different atmosphere where
harmonization and socialization will spawn beyond customer diversity by
providing an innovative, chic and one-of-a-kind setting and with services
that meet customer satisfaction.
Objectives
The primary objective of the company is to gain profit as the business
will be the primary source of income for the partners.
However, since profit will be generated from providing service to the
client, it also realizes the necessity to provide the customers with the
maximum and valuable service in exchange for the money they pay. It is
7 Ibid., p.39-40

P a g e | 17

as important as generating profit for the company to provide the

customers the value they pay for.

II

Situation Analysis
Strengths
A strength is a resource or capability controlled by or available to a firm
that gives it an advantage relative to its competitors in meeting the needs
of the customers it serves.8
The following has been identified as the companys strengths:

High-speed Internet connection in the entire business place. The

company seeks to provide its customers with fast and reliable
Internet connection and with no lags. Thus, it ensures that its
Internet connection is stable and backed up with another

connection in case of sudden and unexpected interruption.

Unique, upscale, warm and inviting business place. One of the
advantages of the business is that its place is like no other. Its
place is designed to suit the needs of many targeting many
people to work in the same environment without compromising the

privacy and comfort of each other.

Tech-savvy organization and people. The owners are tech-savvy
people themselves. For this reason, they are knowledgeable and
experienced in the industry line themselves.

8 Strategic Management, Pearce II/Robinson, p.155

P a g e | 18

Friendly and customer-oriented personnel. Employees are oriented

and trained to facilitate and address customer needs and are
motivated to be friendly and approachable at all times.

Weaknesses
A weakness is a limitation or deficiency in one or more of a firms
resources or capabilities relative to its competitors that create a
disadvantage in effectively meeting a customer needs. 9
The following has been identified as the companys weaknesses:

Rapid change in technology. Technology is advancing so fast. Due

to this reason, the company might not change its hardware and

software systems easily.

Cost linked with keeping with the advancing technology. With the
rapid advancement of technology, the company might not be able
to keep up with the updated systems due to the cost linked in
acquiring them.

Opportunities
An opportunity is a major favorable situation in a firms environment.
The following has been identified as the companys opportunities:
9 Ibid., p.155
10 Ibid., p.154

10

P a g e | 19

Rampant increase in Internet users. Nowadays, people are

realizing the need of access to the Internet. Internet has been a
basic need for many of them like those who depend on the Internet

as a means of profession.
Social bonds. There are a lot of networks which can be linked with
by the company through the Internet. One of which is via the social
media. Social media connections are great links towards other
people who are potential customers.

Threats
A threat is a major unfavorable situation in a firms environment.
Threats are key impediments to the firms current or desired position.

11

The following has been identified as the companys threats:

Emerging competitors. Competitors are indispensable in the market

competition and in the worst case scenario, other companies might

copy the business ideas.

Declining cost of access to the Internet. Due to the rapid
advancement of technology and declining cost of computers and
other gadgets and with the government and other institutions
pursuing the free access to the Internet, the company might be
faced with declining number of customers as well.

III

Segmentation, Targeting and Positioning

11 Ibid., p.155

P a g e | 20

Exhibit 2.2 The Segmentation, Targeting and Positioning Process

Segmentation
Segmentation or market segmentation is the process of dividing the
market into groups of customers with different needs, wants, or
characteristics who therefore might appreciate products or services
geared especially for them. 12
The company conducted a survey and utilized survey questionnaires to
be able to gather information which will be helpful in the commencement
of the business. It sought to determine the demographic profiles of the
respondents in terms of age, gender, and if they are either students,
employed or unemployed as well as to determine responses which are
deemed necessary during the planning stage of the business.
The questions and responses of the respondents are gathered,
charted and interpreted as follows:
The age factor: Respondents in term of age according to our survey,
the survey conducted with in area. The respondents age 56% or 28 out of
50 respondents are in the range of 13-18 years old while 44% or 22 out of
50 respondents are above the range of 19 years.
12 Marketing, Grewal/Levy, p.35

P a g e | 21

In terms of gender/sex 43 out of 50 86% are male students and the

remaining 14% 7 out of 50 are female students.
In terms of occupation/social: the survey shows 52% or in terms 26 out
of 50 respondents are students, while 15 out of 50 or 30% respondents
are employed and 18% or 9 out of 50 respondents are unemployed.
According to survey we asked the people some questions regarding to
our research like:
Do they have computer at home?... in reply to that the reply or
percentage is as follows 56% or 28 out of 50 respondents have computers
at home and the remaining 44% 22 out of 50 they dont have computer in
home.
In continuation we questioned them Do you own other devices such as
tablets or smartphones?... in reply 86% or 43 out of 50 respondents own
other devices such as tablets or smartphones while 14% or 7 out of 50
respondents do not own other devices.
In survey we also found 68% or 34 out 50 respondents have access to
the Internet at home while 32% or 16 out of 50 respondents do not have
access to the Internet at home.
Usage of computer/other devices (tablets, smartphones) in a day?
14% or 7 out 50 respondents use computers and other devices for 1 2
hours, 20% or 10 out of 50 respondents use computers and other devices
for 2 - 3 hours, 38% or 19 out of 50 respondents use computers and other

P a g e | 22

devices for 3 4 hours and 28% or 14 out of 50 respondents use

computers and other devices for more than 4 hours.
In survey we also try to know what is the primary purpose of using
computers, 16% or 8 out 50 respondents said that their primary purpose in
using their computers and other devices is to create/edit document, 52%
or 26 out of 50 respondents said it is to surf the Internet while 32% or 16
out of 50 respondents said it is to play computer games.
Do they like using computers in a cyber caf, study shows 74% or 37
out of 50 respondents like using computers in a cyber caf while 26% or
13 out of 50 respondents do not like using computers in a cyber caf.
In continuation the question raised now Have they ever been in a cyber
caf before? Respondents or survey study shows 44% or 47 out of 50
respondents have been in a cyber caf while 6% or 3 out of 50
respondents have never been in a cyber caf before.
The most common problem that you encountered in a cyber caf? It
shows 4% or 2 out of 50 respondents answered that the most common
problem that they encountered in a cyber caf are noisy customers, 18%
or 9 respondents said its poor customer service, 6% or 3 respondents said
its bad location, 50% or 25 respondents said its slow Internet connection
while 22% or 11 respondents said its poor quality of computers.
Do they like to drink coffee or eat pastry products while queuing in line
or after using the computer? Results shown by study is 78% or 39 out of

P a g e | 23

50 respondents like to drink coffee or eat pastry products while queuing in

line or after using the computer while 22% or 11 out of 50 respondents
dont want to drink coffee or eat pastry while queuing in line of after using
the computer.
Price factor: How much do people think is the reasonable price per
hour of renting a computer in a cyber caf? According to study conducted
result is 86% or 43 out of 50 respondents think that the reasonable price
per hour of renting a computer in a cyber caf is P15.00 while 14% or 7
out 50 respondents think it should be P20.00.

Targeting
Targeting or target marketing is the process whereby the company
evaluates each segments attractiveness and decides which to pursue.

13

We intend to cater both to people who want a guide tour of the internet
and to experienced users eager to indulge their passion for computers in a
social setting. Our target market covers wide range of generation X who
grew up surrounded by computers to seniors from local centers.

13 Ibid., p.35-36

P a g e | 24

The company decided that its primary target market shall be the
students and online gamers and those working who rely on the Internet as
a means of their profession.

Students: the large student population will become an important

part of the customer base. The student population continues to
grow with the success of the university. Evening entertainment
access to the internet and the up-scale ambiance will attract the

demographic.
Business people: the town people or business community is
growing rapidly with the addition pf a new compu-tech place and
furry of new professionals centers. We will provide them perfect
setting for their usage. It also gives travelling business people
an opportunity to bug in place and get the updates about their

emails and other net communications.

Seniors: represent a growing population of internet users or
cafes. We also target the seniors in the nearby town center by
offering introduction to internet classes. We will hold brief
classes in the off hours to educate seniors how to use and
operate internet and gadgets to communicate with friends and
family. This will build a regular base of customers that would not
typically use the services.

P a g e | 25

Positioning
Positioning or market positioning involves the process of defining the
marketing mix variables so that the target customers have a clear,
distinctive, desirable understanding of what the product does or
represents in comparison with competing products.

14

The company will offer a unique and innovative experience to the

customers. It prides itself to be a pioneer in the industry which will offer an
upscale and modern internet caf by adding subsidiary products and
services such as events hosting, computer tutorials, computer repairs and
coffee and pastries in the lounge area.

IV

Marketing Mix
Products
Products, which include services, constitute the first of the four Ps.
Because the key to the success of any marketing program is the creation
of value, firms attempt to develop products and services that customers
perceive as valuable enough to buy. 15
The company shall offer the following services as its principal and
subsidiary line of products:

14 Ibid., p.36
15 Ibid., p.38

P a g e | 26

1. Computer Renting. This will be the main product or service that the
business will offer to the customers, which will be rendered
depending on the renting hours.
2. Printing. This service will be provided by the business to customers
who are in need of printing services limited to document printing
with or without photos.
3. Encoding. This service will be provided by the business which will
cater customers who are in need of assistance in typing jobs.
4. Scanning. This service will be provided by the business to
customers who are in need of document scanning.
5. Event Hosting. This is one of the unique features of the business.
With the innovative layout of the business place and the strategic
placement of the hexagonal stage, the cyber caf will cater events
which are related to computer and technology industry like
computer games tournament, technological products introduction
and many more.
6. Computer Tutorials. Aside from catering of events, the company will
also render informative computer tutorials.
7. Computer Repairs. This service will be rendered to customers who
are in need of computer repairs, both for hardware and software.
8. WIFI Access. This service will be offered to customers who have
their own computers or other devices which can have access to the
Internet but wants a fast and reliable Internet connection outside
their home.
9. Lounge Coffee and Pastries. This subsidiary product of the
business will be offered at the lounge area where guests can enjoy
coffee and pastries while doing their work.

P a g e | 27

Price
The second element of the marketing mix is price. As part of the
exchange program, a firm provides a product or service, or some
combination thereof, and, in return, it gets money. Value-based marketing
requires that firms charge a price that customers perceive as giving them
a good value for the product they receive. Clearly, it is important for a firm
to have a clear focus in terms of what products to sell, where to buy them,
and what methods to use in selling them. But pricing is the only activity
that actually brings in money by influencing revenues. If a price is set too
high, it will not generate much volume. If a price is set too low, it may
result in lower-than-necessary margins and profits. Therefore, price should
be based on the value that the customer perceives.

16

After extensive pricing study, the company came up with the following
price table for its products:

Price Table
In Philippine Peso
Product/Service
Price
Computer Renting
P20.00/hour
Printing
Without Photos
P5.00/page
With Photos
P10.00/page
Encoding
P5.00/page
Scanning
P20.00/page
Photocopying
P0.75/page
Event Hosting
*
Computer Tutorials
P1,000.00/head
16 Ibid., p.38-39

P a g e | 28

Computer Repairs
WIFI Access
Lounge Coffee and Pastries
Coffee
Glazed Doughnut
Cinnamon Puff
Sandwich

*
P500.00/40Hours
P50.00
P20.00
P40.00
P20.00

Table 2.1 Price Table

*Event hosting price is subject to variation depending on the type of

event while the price for computer repairs will depend on the quantity of
hardware and software repairs.
Place
For the third P, place, the firm must be able, after it has created value
through a product and/or service, to make the product or service readily
accessible when and where the customer wants it.

17

The company decided to establish the business at the Ground Floor

Claveria Plaza Building, Circumferential Road, Barangay Dalig, Antipolo
City, Rizal, Philippines.
Promotion
The fourth and last P of the marketing mix is promotion. Marketers
communicate the value of their offering, or the value proposition, to their

17 Ibid., p.39

P a g e | 29

customers through a variety of media including television, radio,

magazines, sales forces, and the Internet.

18

During the first year of the operations, the company will advertise the
business extensively by maximizing the advantages of social media such
as Facebook. It will also distribute brochures to people and post tarpaulins
to promote the business.

Exhibit 2.3 The Hive Cyber Caf Facebook Page

18 Ibid., p.39

P a g e | 30

Exhibit 2.4 The Hive Cyber Caf Brochure

Marketing Metrics
The final step in the planning process includes evaluating the results of
the strategy and implementation program using marketing metrics. A
metric is a measuring system that quantifies a trend, dynamic, or
characteristic. Metrics are used to explain why things happened, and to
project the future. 19

Comparative Table
The Hive Cyber Caf

General Computer Shops

Pricing

Average

Average

Computer Specs

Above Average

Average

Internet Speed

Outstanding

Below Average

Services Offered

Outstanding

Average

Store Layout

Outstanding

Average

Customer Service

Outstanding

Average

19 Ibid., p.39-40

P a g e | 31

The Comparative Table represents the difference of The Hive Cyber

Caf from the other business in the same industry.
In terms of Pricing, The Hive Cyber Caf and a General Computer
shop were marked as average since they both charge the same amount of
fee for computer rentals, encodings, printing, and scanning.
In terms of Computer Specs, The Hive Cyber Caf was marked as
Above average since it showcases computer units that meets both the
minimum and standard requirements for software operation rather than
the average computer performance of the General Computer Shops.
In terms of Internet Speed, The Hive Cyber Caf was marked as
Outstanding because the business availed the 200 Gb of internet speed
rather than the standard speed of General Computer Shops which usually
ranges within 15-20 mbps.
In terms of Services Offered, The Hive Cyber Caf offers a wide
variety of services which are not limited to computer renting. It offers WIFI
access, Lounge Coffee, Pastries, Tutorials and Event Hosting while still
offering the basic computer services of a General Computer Shops.
In terms of Store Layout, The Hive Cyber Caf showcases a fresh
and unique idea of a cyber caf store layout compare to the average or
regular layout of a General Computer Shops.

P a g e | 32

In terms of Customer Service, The Hive Cyber Caf has a manager

and knowledgeable computer assistance personnel that ensures of its fast
and outstanding customer service than the usual customer service of a
General Computer Shop that is only attended by the server operator.

CHAPTER III
Technical Study

P a g e | 33

Technical Study
I.

Service
The business will be primarily engaged in the providing of access to
the Internet and gaming software and applications, printing, encoding,
scanning and photocopying jobs. Full access to the Internet is allowed;
provided, however, that no explicit sites shall be visited.
It will also engage itself in staging events which are related to
computer and technology industry such as computer games tournament
and technological products introduction, tutorial of computer-related
subjects, computer repairs and providing of WIFI access to customers.
Lastly, it will also provide the customers a great experience at the
lounge area where it offers several coffee and pastry items.

P a g e | 34

II.

Service Process
In the service production of the company, the following exhibit explains
how the process starts and ends:

Exhibit 3.1 Service Production Flow Chart

P a g e | 35

III.

Service Cost
Product/Service Cost (per month)
In Philippine Peso
Direct Costs
Supplies and Materials
Internet Service Provider
Total Direct Cost
Indirect Costs
Labor Cost
Water and Electricity
Total Indirect Cost

5,000.00
4,499.00
9,499.00
21,720.00
45,360.00
76,579.00

Table 3.1 Product / Service Cost

IV.

Store Layout

Exhibit 3.2 Store Layout (Top View)

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Exhibit 3.3 Store Layout (Three-Dimensional View)

Exhibit 3.4 Store Layout (Three-Dimensional View)

P a g e | 37

Exhibit 3.5 Store Layout (Front Desk)

Exhibit 3.6 Store Layout (Computer Tables)

P a g e | 38

Exhibit 3.7 Store Layout (Stage)

Exhibit 3.8 Store Layout (Lounge Counter Area)

P a g e | 39

Exhibit 3.9 Store Layout (Lounge Area)

Exhibit 3.10 Store Layout (Office)

P a g e | 40

Exhibit 3.11 Store Layout (Conference Room)

Exhibit 3.12 Store Layout (Storage Room)

P a g e | 41

Exhibit 3.13 Store Layout (Restrooms)

V.

Supplies, Furniture and Equipment

P a g e | 42

Supplies

Item

Quantity

Short Bond Paper

10

Long Bond Paper

10

Printer Ink

10

Plate

20

Cup/Mug

20

Teaspoon

20

Fork Spoon

20

Coffee

Sugar

Milk

Doughnut

15

Sandwich

15

Cinnamon Puff

180

Trash Bin

Broom

Dust pan
Dishwashing
Liquid

Total

2
346

Price/unit
150.
00
167.
00
200.
00
24.
95
24.
95
20.
00
20.
00
489.
00
45.
00
80.
00
50.
00
30.
00
30.
00
500.
00
100.
00
150.
00
80.
00
2,160.
90

Total
Price
1,500
.00
1,670
.00
2,000
.00
499
.00
499
.00
400
.00
400
.00
2,445
.00
225
.00
400
.00
750
.00
450
.00
5,400
.00
2,500
.00
200
.00
300
.00
160
.00
19,79
8.00

Furniture and Fixtures

Item
Customer's Chair

Quantity
18

Price/uni
t
2,995.00

Total Price
53,910.00

P a g e | 43

Office Chair
Lounge Customers
chair

11

3,550.00

39,050.00

3,250.00

19,500.00

Lounge Sofa
Front Desk/Cashier's
Desk
Customer's Computer
Table

32,400.00

64,800.00

19,850.00

19,850.00

3,000.00

27,000.00

Lounge Center Table

Lounge Customer's
Table

1,999.00

3,998.00

5,700.00

11,400.00

Lounge Display table

7,850.00

7,850.00

Conference Table

6,200.00

6,200.00

Lounge Cabinet

5,500.00

5,500.00

Filing Cabinet

11,500.00
103,79
4.00

11,500.00
270,558.
00

Total

55

Machineries and Equipment

Item

Quantity

Air
Conditioner

Refrigerator

Coffee maker
Microwave
Oven
Water
Dispenser

Projector
Projector's
screen

CCTV Camera

Total

1
2

14

Price/uni
t
24,398.
00
9,988.
00
38,800.
00
4,698.
00
5,198.
00
22,990.
00
800
.00
3,472.
00
110,34
4.00

Total
Price
73,194.
00
9,988.
00
38,800.
00
4,698.
00
10,396.
00
22,990.
00
800
.00
13,888.
00
174,754.
00

P a g e | 44

Future Plans
Future plans will be implemented once the payback has been met for
all partners and will consist of the following: increase in the number of
units available for use from 18 units to 28 units; addition of an 80-inch
LCD screen for upgrading the current projector; and upgrading of the
Internet speed plan from the 200 Mbps to 1Gbps or may also apply for a
backup internet connection with other Internet Service Providers (ISPs).
The company also plans to open a new branch once it finds that the return
on investment is sufficient enough to put up a new branch.

P a g e | 45

CHAPTER IV
Organization and Management Study

Organization and Management Study

I.

Partnership Agreement
According to Article 1767 of the Civil Code of the Philippines, by the
contract of partnership, two or more persons bind themselves to contribute
money, property or industry to a common fund, with the intention of
dividing the profit among themselves.

P a g e | 46

The partnership is chosen to be the form of organization of the

business for the following reasons:

Ease of Formation. A mere agreement or understanding establishes

a partnership.
Unlimited Liability. There is an assurance and protection for the

potential creditor in extending financial assistance to the business.

Capitalization. As compared to the sole proprietorship, a
partnership can accumulate a greater amount of capital because of

the number of partners.

Joint Resources. It provides an opportunity to pool the skills,

experience and resources of two or more persons.

Less Government Supervision. A partnership receives less
government interventions than a corporation does.

A partnership may be constituted orally or in writing. Partnership

agreements are embodied in the Articles of Partnership.
The following essential provisions may be contained in the agreement:
1
2
3
4

The partnership name, nature, purpose and location;

The names, citizenship and residences of the partners;
The date of formation and the duration of the partnership;
The capital contribution of each partner, the procedure for valuing
non-cash investments, treatment of excess contributions (as capital
or as loan) and the penalties for a partners failure to invest and

maintain the agreed capital;

5 The rights and duties of each partner;

P a g e | 47

6 The accounting period to be adopted, the nature of accounting

records, financial statements and audits by independent public
0accountants;
7 The method of sharing profit or loss, frequency of income
measurement and distribution, including any provisions for the
recognition of differences in contributions;
8 The drawings or salaries to be allowed to partners; and
9 The provision for arbitration of disputes, dissolution, and liquidation.

Before a partnership can operate legally, it has to comply first with

certain registration requirements which are summarized on the following
table:

Place of Registration

Requirements for
Registration

Certificates Issued

Securities and Exchange

Commission

Articles of Co-Partnership
Filled SEC Registration Form

SEC Certificate

Department of Trade and

Industry

Articles of Co-Partnership
SEC Certificate

Certificate of Registration of
Business Name (renewable
every five years)

City or Municipal Mayors

Office

Certificate of Registration of
Business Name

Mayors Permit and License

to Operate (renewable
annually)

Bureau of Internal Revenue

SEC Registration
Articles of Co-Partnership

BIR Registration No.

Partnerships Tax
Identification Number (TIN)
Registration of books,
invoices and official
receipts

Social Security System

Filled SSS Application Form

List of Employees

SSS Certificate of
Membership
SSS Employer ID Number

P a g e | 48

Philippine Health Insurance

Corporation

SEC Registration
Employer Data Record or ERI
Form
Business Permit or License

PhilHealth Employer
Number (PEN) and the
Certificate of Registration
PhilHealth Identification
Number (PIN) and Member
Data Record (MDR) for
concerned employees

PAG-IBIG Fund

SEC Registration
Articles of Co-Partnership

PAG-IBIG Fund Certificate

of Membership
PAG-IBIG Fund Employer
ID Number

Table 4.1 Requirements in Organizing a Partnership

II.

Labor Requirements
Staffing Requirements
Title: Manager

Job Description
Recruits, hires, trains,
evaluate and counsels

Qualifications
Strong leadership skills.
Strong interpersonal,

employees.
Schedules, organizes and

directs assignments.
Conducts regular operations

and organizational skills.

Willing to work in rotational

meetings.
Resolves customer problems

shifts.
Must be a graduate of

motivational, communication

P a g e | 49

or complains by determining

Business Administration or

optical solutions.

any related course.

Must be single.

Table 4.2 Job Description and Qualifications of Manager

Title: Accountant

Job Description
Prepares assets, liabilities

and capital account entries

Qualifications
Must be a graduate

of

Bachelor

in

of

Science

by compiling and analyzing

account information.
Documents financial

transactions of the company.

Summarizes current financial
status by preparing the

necessary financial reports.

Substantiates financial
transactions by auditing

documents.
Computes taxes owed and
prepares tax returns,
ensuring compliance with
payment, reporting and other

Accountancy program.
Must
have
reasonable
experience in bookkeeping

and accounting.
Must be single.

P a g e | 50

tax requirements.
Table 4.3 Job Description and Qualifications of Accountant

Title: Cashier

Job Description
Provides prompt and friendly

customer service.
Operates cash register.
Performs monetary
transactions such as
receiving and giving change.

Qualifications
Knowledgeable in basic

arithmetic.
Skillful in handling and

counting cash.
Must be skillful in public

communications.
Willing to work in rotational

shifts.
Must be a graduate of any 4-

year course.
Must be single.

Table 4.4 Job Description and Qualifications of Cashier

P a g e | 51

Title: Technical Personnel

Job Description
Installs and configures

Qualifications
Must be a graduate of any

computer-related course.
Must be single.

computer hardware operating

systems and applications.

Monitors and maintains
computer systems and

networks.
Troubleshoots system and

network problems.
Replaces system parts as

may be required.
Tests and evaluates new

technology.
Conducts electrical safety
checks on computer
equipment.
Table 4.5 Job Description and Qualifications of Technical Personnel

P a g e | 52

Title: Computer Assistant

Job Description
Identifies and solves

technical problems.
Performs preventive

maintenance of equipments.
Provides on-site support to
customers and clients with

graduate with general

secretarial or computer

related operations training.

Must have work or data

processing experience.
Willing to work in rotational

shifts.
Must be single.

especially challenging
computer problems.

Qualifications
Must be at least high school

Table 4.6 Job Description and Qualifications of Caf Assistant

Title: Security Guard

Job Description
Supervises and secures

safety of business location.

Maintains law and order in

Qualifications
Security licenses.
Must be disciplined and
vigilant.

the business place.

Table 4.7 Job Description and Qualifications of Security Guard

P a g e | 53

Application Requirements
1.
2.
3.
4.
5.
6.
7.
8.

Resume
Two valid identification cards
Birth certificate
NBI Clearance
SSS Number
PhilHealth Number
PAGIBIG Number
Tax Identification Number

Table 4.8 Application Requirements

III.

Organizational Structure

Exhibit 4.1 Organizational Structure

IV.

Company Policies

P a g e | 54

The following rules and regulations shall apply to all the employees of
the company while inside the company premises at all times including
break and over time.

Employees must act in accordance with the company policies,

orders, rules and regulations.

Employees must wear proper uniform when inside the business

place.
Absence shall have proper and prior notice.
No Smoking and No Drinking of Liquor policies are strictly

enforced inside the company place.

Employees are not allowed to bring unnecessary objects, deadly
weapons, prohibited drugs, liquor and pornographic materials.

V.

Compensation and Benefits

The following compensation and benefits shall be given to the
employees of the company.
Basic Salary
The basic salary or base salary is the fixed amount of money paid to
an employee in return for work performed. It does not include benefits,
bonuses and any other potential compensation from the employer.
Employee designations and their respective monthly and annual basic
salaries are provided below:

Designation

Monthly Salary

Annual Salary

P a g e | 55

Manager

P18,000.00

P216,000.00

Accountant

P15,000.00

P180,000.00

Cashier

P13,500.00

P162,000.00

Technical Personnel

P13,500.00

P162,000.00

Caf Assistant

P12,000.00

P144,000.00

Security Guard

P12,000.00

P144,000.00

Table 4.9 Employees Basic Salaries

13th - Month Pay

The 13th-month pay is equivalent to the mandatory one month basic salary of
an employee.
Social Security System Contribution
The Social Security System (SSS) contribution is a benefit paid for by the
employer and employee in accordance with the SSS schedule of contributions for
the social security benefit of an employee.
The following table shall be the basis for the contribution of the company and
its employee:
PhilHealth Contribution

P a g e | 56

The PhilHealth contribution is a benefit paid for by the employer and

employee in accordance with the PhilHealth Premium Contribution Table for the
medical security benefit of an employee.

VI.

Employee Uniforms

Exhibit 4.2 Employee Uniform (Front Design) Exhibit 4.3 Employee Uniform (Back
Design)

All employees are required to wear the prescribed employee uniform,

pants and shoes whenever inside the company premises.

P a g e | 57

CHAPTER V
Financial Study

I.

Summary of Assumptions

II.

Mode of Financing

P a g e | 58

The company will be established with the partners investing

P275,000.00 each.

III.

Pre-Operating Cost

Table 4.11 Pre-Operating Cost

IV.

Projected Financial Statements

A. Projected Statement of Financial Performance
A Statement of Financial Performance or conventionally called Income
Statement is a statement that shows the performance of the business for a
given period of time. It summarizes the revenues earned and expenses
incurred for that given period of time.

P a g e | 59

B. Projected Statement of Changes in Partners Equity

A Statement of Changes in Partners Equity summarizes the changes
that occurred in each partners equity.

P a g e | 60

C. Projected Statement of Cash Flows

A Statement of Cash Flows provides information about the cash
receipts and cash payments of an entity during a period. It is a formal

P a g e | 61

statement that classifies cash receipts (inflows) and cash payments

(outflows) into operating, investing and financing activities. This statement
shows the net increase or decrease in cash during the period and the
cash balance at the end of the period.

D. Projected Statement of Financial Position

P a g e | 62

A Statement of Financial Position or conventionally called Balance

Sheet is a statement that shows the financial position or condition of a
business by listing the assets, liabilities and equity as at a specific date.

A. Ratio analysis

P a g e | 63

A process where the financial analyst compares each firms debt to it

assets and the interest it must pay to the income it has available for
payment of interest. The following are the most common ratios by financial
analysts:
A.1 Liquidity Ratios
These are ratios that show the relationship of the companys
cash and other current assets to its current liabilities. This will indicate
whether the firm can meet its maturing obligations.

Current Asset Ratio =

Current Assets
Current Liabilities

2016

Current Assets

1545175.78

Current Liabilities

433088.7

Current Asset Ratio

3.57:1

This will determine the ability of the firm to meet its current obligations.
The current asset ratio states that for every peso of current obligations,
The Hive Cyber Cafe has 3.57 pesos current assets to pay such
obligations.

Quick (Acid) Test Ratio =

Quick Assets
Current Liabilities
2016

Quick Assets
Current Liabilities
Quick Acid Test Ratio

1,535,342.78

433088.7
3.55:1

P a g e | 64

Quick assets of The Hive Cyber Cafe include only cash. The quick asset ratio
would mean that for every peso of current liability, The Hive Cyber Cafe has 3.55
pesos quick assets to pay such obligations.
B.2 Debt Management Ratios
These ratios will measure the extent to which firm uses its debt
financing or the so called financial leverage.

Debt to Total assets Ratio =

Total liabilities
Total Assets

2016

Total Liabilities
Total Assets
Debt to Total Assets
Ratio

433088.7
2126549.75
.20:1

P a g e | 65

It measures to what extent that portion of the total assets provided by the
creditors. The debt total assets ratio of The Hive Cyber Cafe indicates that 20%
of the firms total assets are financed by the creditors or debt.

2016

Total Liabilities
Total Partners' Equity
Debt/Equity Ratio

433088.7
1693461.05
.26:1

It measures the degree to which the assets of the business are financed
by the debts and the partners' equity of a business. The debt/equity ratio of 26%
is favorable to the firm because it indicates a low amount of debt, and is therefore
exposed to less risk in terms of interest rate increases or credit rating

C.1 Profitability Ratios

P a g e | 66

These ratios would show the net result of the policies and
decisions the management did in the current period. The combined effects of
liquidity, asset management, and debt management on operating results will be
analyzed using these ratios.

Gross Profit Margin Ratio =

Gross Profit
Sales

2016

Gross Profit
Sales

1583944.36
2,485,200.89

Gross Profit Margin

64%

The ratio shows that for every one (1) peso incurred to render the
services, the firm is earning 64% of it. In addition, such ratio is favorable because
more profit will be available to cover all other costs.

Return on Sales =

Net Income
Sales

2016

Net Income
Sales
Return on Sales

314684.04
2,485,200.89

13%

P a g e | 67

It shows how efficiently management uses the sales income, thus

reflecting its ability to manage costs and overhead and operate efficiently. The
ROS shows that The Hive Cyber Cafe generates 13% of profit per peso of its
sales.

Net Income
Ave. Total Assets

Return on Assets =

2016

Net Income

314684.04

Ave. Total Assets

1,063,274.88

Return on Assets

30%

It gives an idea as to how efficient management is at using its assets to

generate earnings. The return on assets of 30% shows that the firm is earning
more money on the total invested assets.

Return on Equity =

Net Income
Ave. Partners Equity

2016

Net Income
Ave. Partners' Equity
Return on Assets

314684.04
846,
730.53

37%

P a g e | 68

It measures a corporation's profitability by revealing how much profit a

company generates with the money shareholders have invested. The ROE of
37% indicates that the management is more efficient in utilizing its equity base
and the better return is given to investors.

V.

Projected Revenues and Expenses

A. Projected Revenue

B. Projected Cost of Services

C. Projected Supplies Expense

P a g e | 69

D. Projected Rent Expense

E. Projected Salaries Expense

F. Projected 13th Month Pay

P a g e | 70

G. Projected Contributions

H. Projected Utilities Expense

I. Projected Depreciation Expense

P a g e | 71

P a g e | 72

CHAPTER VI
Socio Economic

I.

Contribution to the community

The business will contribute to the community by adhering the
following:

P a g e | 73

Providing a place where people may interact socially through hightech means such as chatting with each other with the topics being
limited to computer-related and enjoying the same stuff that they

want.
By delivering a premium quality experience at a low cost.
By bringing one of a kind innovative layout different from existing
computer rental shops that gives a different ambience to the people

of the community.
Providing not only leisure time but knowledges essential to the
present industry.
So overall, the business simply aims to share the premium

experience of the computer industry by providing leisure time while

sharing essential knowledge.

II.

Contribution to the government

The business will be able to contribute to the government by
adhering to the laws, paying the proper and required taxes, following
their instructions and providing a good relationship with them by
continuously supporting them through and through.

III.

Contribution to the Economy

The business will contribute to the economy by providing another
establishment to the economic cycle whilst healthily competing and
supporting other businesses, and by providing another source of
computer service for the people and establishments near its vicinity.

P a g e | 74

IV.

Conclusion
For the conclusion, it is therefore found by the partners who owns
this establishment that the business is not just a source of income for
them but also, it provides a healthy and supportive environment for
different people especially those that are heavily connected to todays
technological improvement, social interconnection and also to those
that are new to the experience of being in a high-tech society. It will
definitely be able to provide service living up to its name of The HIVE
Cyber Caf.

V.

Recommendation
The business is inclined to recommend the following for the sake of
itself and as reference for other future businesses within the same
industry:
- Avail to the societys required standards for a good quality
-

computer service.
Provide sincere and honest-to-good customer service.
Stay updated with the latest computer trends.
Follow the laws, rules and regulations of the business industry and
the government.