Coffee Bytes

Chapter I

Introduction

A. Background of the Study

This business research aims to join multiple businesses in one setting. It is a conjunction of

coffee shop, internet cafe, and printing press. Therefore, the researchers decided to name the

business “Coffee Bytes.” The name is derived from two reasons. First reason is that the term

coffee is big factor in any cafe business. While, bytes is a unit of computer information wherein

it represents the computers and printing press that the business also offers. It will operate from 6

am to 8pm from Monday to Saturday. This business will be located near Mangaldan National

High School which has the most number of students in Region 1.

Although there are many students, there are only 2 businesses that offer printing and

photocopying. Since there is a big demand, it is a great opportunity to establish not just a printing

press but computer and coffee shop combined. Students can unwind and relax while they wait for

their hand-outs or while they use the computer. It is very convenient considering that the location

of the business is near the school. Also, the business offers the highest quality at the same price

among other printing shops. It also has freshly brewed coffee and drinks along with delicious

pastries and delicacies that will surely enjoy by teens. On the other hand, teachers are also a

target market of the business. Since encoding, printing, and photocopying documents are needed

in order to reproduce hand-outs and test papers for their students.

The marketing strategies of Coffee Bytes are through creating social media awareness,

distributing flyers, tarpaulins, and provide opening promos. Social media is one of the most

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powerful tools in extending the reach of the business which allows Coffee Bytes to attract more

customers. On the other hand, distribution of flyers and tarpaulins along the location will make

the business to be known as well as increase its sales. Lastly, with promos, it will encourage

previous and new customers to avail the services and products offered by the business.

B. Scope and Delimitation

This study will focus on the feasibility of putting up a 3 in 1 business, composed of

computer, print and coffee shop, in Mangaldan, Pangasinan as a business research. The study are

only limited in providing common printing needs such as documents, photocopies, pictures, hard

and soft-bounded books. The researchers will also provide computer needs such as encoding

services and even beverages like coffee and milk teas.

Coffee Bytes will be built up in De Guzman St., Poblacion, Mangaldan, Pangasinan. The

researchers chose this business because of its demand in the area. The site where the

establishment will be constructed is surrounded by schools, stalls and shops. This study is

focused to the students and teachers from Mangaldan National High School and also other

schools. The researchers selected -- students for every grade level with a total of -- participants

as their respondents in the survey. In line with this, the target market are consists of the students

and teachers of Mangaldan National High School and also other schools, so the information

presented in the following chapters is only based on the limited target market and conditions.

For gathering and collecting data, the researchers will use survey and interview.

C. Significance of the Study

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This study is to determine the feasibility of putting up a printing business with a conjunction

of café. Furthermore, this study could be of importance to the following:

 To the community

The business will be able to address the gap between the supply and demand

among printing shops and the consumers, which are the students from Mangaldan

National High School, given that the said school is composed of almost 8,000

students yearly.

 To the students

This study brings the business closer to the students since most of the homework

and performance tasks of the students require them to print and photocopy some

documents, the business could provide them convenience considering that the

location of the business is near the school. Also, the business offers a unique

experience by offering a relaxing café, computer shop and printing service with

highest quality at the same price among other printing shops, it is really an advantage

for them.

 To the teachers

Teachers are also a benefactor of the business since they offer beverages and

foods that they can order while they are waiting, encoding services, printing

documents and photocopying which can help them in reproducing hand-outs and test

papers for their students. Additionally, there are teachers as well who print the

documents for teaching and reporting purposes.

 To the schools located in the vicinity of Mangaldan

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Schools are in need of printing identification cards at the start of every school

year and yearbooks at the end of every school year, Coffee Bytes will provide their

printing necessities all throughout the school year. This study will meet this demand

since they will also perform such services at a reasonable price. It is very beneficial

for them because these schools won’t have to go to nearby towns, such as Dagupan,

to negotiate with photographers and other printing shops to print their identification

cards.

 To the readers and future researchers

This study is conducted with the intent to provide researchers/readers knowledge

on printing businesses. This is also for them to know the industry’s benefits, risks,

strengths, weaknesses, opportunities and threats that may improve or hinder the

business and profit. This research study could be used as a reference for related

studies by the researchers doing similar studies. This research paper is also subjected

to improvements and further analysis by the future researchers interested in the same

industry.

Chapter 2

Company Profile

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Coffee Bytes is a printing service with a conjunction of computer shop and cafe formed

as a partnership. The management of the business excels in laying out design and in technical

aspects. The business will offer printing services for a wide range of the needs of students,

teachers, schools and small and medium enterprises. The initial investment of the business will

be Php 2, 500, 000 including all the things and equipment that will be used in the business.

The logo of the business has been made very simple yet it is enough to attract every

customer’s attention. It only consists of the name of the business which is Coffee Bytes together

with an images represented by the name of the business. The logo is designed with a computer

and a cup of coffee which are the components of the business. Computer for the service offered

for printing and computer services while cup of coffee for the beverages that will be offered. To

sum it up, the logo of the business will definitely catch the customers’ attention because of its

simple yet attractive design.

Objectives
Figure 1.1 Logo of the Business

 General Objective

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The main objective of this study is to make the Coffee Bytes the number one destination for

foods and drinks as well printing services in Mangaldan, Pangasinan. In addition, the researchers

wanted to prove its profitability by earning a positive return on investment.

 Specific Objective

 To promote the uniqueness of the products and services offer by our business.

 To sustain the needs and wants of every customer and visitors of Coffee Bytes.

 To effectively provide printing services for students, teachers, and schools.

 To serve unique foods and drinks with an interesting twist at a great value.

Vision

 To be the leading printing service provider and be the number one destination for

beverages and snacks in Pangasinan.

 To be known as an innovative business model that delivers excellent customer service

and promotes corporate social responsibility awareness

Mission

 To provide delicious coffee products and excellent, reliable services to our customers and

earn the trust of our customers, employees, partners and our community.

 To contribute good development and prosperity.

A. Business Concept Description

This business research aims to join multiple businesses in one setting. It is a conjunction of

coffee shop, internet cafe, and printing press. Therefore, the researchers decided to name the

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business “Coffee Bytes.” The name is derived from two reasons. First reason is that the term

coffee is big factor in any cafe business. While, bytes is a unit of computer information wherein

it represents the computers and printing press that the business also offers.

Coffee Bytes is located at Poblacion St., Mangaldan, Pangasinan and it will operate from 6

am to 8pm from Monday to Saturday. It will offer printing, photocopy, layout, bookbind, and

internet services as well as milktea, coffee, frappe, snacks like fries and nachos. It is gives

convenience to customers because not only it offers high quality products and services, but

satisfaction and productivity to them.

B. Description of Product and Service

Coffee Bytes is unique because it has good quality products and at the same time the business

will provide full service to the customers. It is qualified to compete in the market because it is

not just other café that you visited, the reason is that, the business will not only produce foods

and drinks but also it has services such as printing and internet. The target markets of Coffee

Bytes are students, teachers and schools. Coffee Bytes value proposition is that we offer a lot of

benefits at the same price. It will help the customers to save money and time especially to the

students and can satisfy the needs and want of every customer that is beyond their expectation.

C. Competitive Advantage

The business will be located in Poblacion Mangaldan, Pangasinan specifically near

Mangaldan National High School which has the largest volume of students in Region 1. The

competitors of the business are: Ranzone, Jonhill, Pics and Prints, and 2 computer shops with

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printing services that accommodate 15 schools (elementary, high school and college) in the

vicinity. The competitive advantage of Coffee Bytes is that the business is near the school and

offers multiple benefits such as snacks, coffee, computer shop, printing and any other computer

services. The customers will be able to save time and effort because it's in one setting only.

Location Profile

Mangaldan is a first class municipality in the province of Pangasinan, Philippines. It is the

home of the original makers of the famous delicacy, Romana Peanut Brittle. Also, the municipal

government operates its slaughterhouse with a rated "double A" by the National Meat Inspection

Service (NMIS) that guarantees the butchered meat as safe and clean. Its popular carabeef tapa

locally known as pindang is the “One Town One Product” of this municipality. This town is

almost a city where many business establishments are situated. So when it comes to printing,

there are many businesses that offer various printing services.

The location of the business is near the Mangaldan Public Market. It is located at De Guzman

Street, Poblacion, Mangaldan, Pangasinan. The researchers will rent one space in the building

owned by Pax Aeterna. The space will be rented at an amount of Php 8,500 and an additional of

Php 500 for the security for a total of Php 9,000. There are 15 schools in the vicinity and one of

these is near the location of the business named Mangaldan National High School, the school

with a largest population in Region 1 with 7,944 students.

The direction to the business location is as follows: from Dagupan City, you will have to ride

a jeep going to Manaoag. After 30 minutes of traveling, you have to get off next to Magic

Jollibee, in front of JG’s in Mangaldan, Pangasinan. Then, you have to cross the pedestrian and

turn to the left side. Afterwards, you have to keep walking until you reach De Guzman Street. As

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you go in the De Guzman Street, you have to walk for about one minute, and then you can see

the building of Pax Aeterna. You have to enter the building and walk inside. Finally, the second

stall you will see is the location of Coffee Bytes.

Figure 2.1 PaxAeterna Building Figure 2.2 Location of the Business

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Figure 2.3 Jollibee @ Magic Mall Figure 3.4 Mangaldan National High School

Figure 2.5 Dagupan to Mangaldan via Google map

D. SWOT Analysis

The following SWOT analysis captures key strength and weaknesses within the business and

describes the opportunity and threats facing the business.

Strengths

 Three-in-One business. Coffee Bytes offers three varieties of services to the

customers which include the coffee shop, printing press and internet cafe. Having a

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multi-dimensional type of business, it sets us apart from other internet cafè that gives

us a competitive advantage. It increases the profitability of the business since it offers

variety of services and attracts lots of customers every day that can sustain the needs

and wants of every customer.

 Convenience and relaxing environment. The great ambience of the internet cafè

can help the customers to relieve their daily stresses and of course having a various

type of coffee drinks and delightful pastries. The staff members in the business are

highly trained and experienced. Our customers will be more satisfied by giving them

the best quality of printing services at a reasonable price and daily tasting foods and

drinks in a nice setting with a friendly customer service.

 Pleasing gift rewards. Gift cards, rewards and certificates are one of our marketing

tools to make our customers be fond to revisit more often our business and to

encourage customers tell and recommend the business to their friends and other

residents within the area. This will help the business to catch the attention and interest

of the people by grabbing the advantage in our special offers and discounts. And also

it increases the sales through this.

Weaknesses

 Existing Product. Coffee Bytes offers products and services which consist coffee

and milktea, and printing press as well that is offered by other competitors in

Mangaldan. Therefore, it will have a hard time to attract customers because it has

several competitors which offers the perfect substitutes.

 Maintenance Fee. It’s expensive because regular maintenance of equipment includes

cleaning, inspection, testing, measurement, replacement, and adjustment that will

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make the equipment lasts longer. In this regard, the researchers need to hire service

from someone who has expertise in that field though its maintenance fee is costly.

Opportunities

 Location. Coffee Bytes will be located near at school (specifically Mangaldan

National High School which has the largest volume of students in Region 1) and

along the highway where the customers are mostly found. Highly affluent local

population

 Supply and Demand. Mangaldan has only 3 printing shops and 2 computer shops

with printing services that accommodate 15 schools in the vicinity. Students always

in need of computers and printing services every day for academic purposes wherein

these students mainly came from Mangaldan National High School which has the

largest number of students in Region 1.

 Abundant new prospects of coffee drinkers and users of computer. A lot of

people can drink 2 or more cups of coffee every day. Since there is an increased in the

number of people who loves to drink coffee and play computer games, it is a huge

opportunity to get new customers. The coffee drinkers and the computer gamers are

one of the potential customers of the business since they can contribute a big factor in

the growth of the business and an edge to the competitors.

Threats

 Competition. It is really inevitable to have your rival in business. This means that the

business has its competitors (Ranzone, Jonhill, Pics and Prints, and 2 computer shops)

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which provide the same product and service with low price. Competition is one factor

that we considered as our threat.

 Speed of Change. With the passage of time, technological advancements are

naturally occurring and the economic stability keeps changing. This threat might

affect the business in terms of equipment (such as computer, printer, grinder machine

for coffee and milktea sealing machine) utilized and cost of materials being spent.

 Academic calendar break and major holidays. Due to special holidays or vacation,

the target customers will get a short break in school. Therefore, they have fewer

requirements to do. So, the business will get a lower or a little break as well in terms

of profit. This threat affects the operation of the business.

Chapter 3

Review of Related Literature and Studies

A. Foreign Literature and Local Literature

The transformation of manual enrolment transaction automated and now into web based

automation is one example of what has driven partly by the rapid technological innovation. Any

ways just to make work easier and faster like enrolment transactions is possible with the

emergence of computer technologies.

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Technology innovation had influenced man’s work from data processing, business

transaction, research, planning, monitoring and even in medical operation on human anatomy are

now entrusted to computer technology. Web applications are popular due to ubiquity of its

applications. The ability to update and maintain web applications without disturbing and

installing software on potentially thousands of client computers are key reasons for its

popularity. A significant advantage of building web applications to support a standard browser

feature is the ability to perform as specified, regardless of the operating system installed on a

given client (Bacala and Reanno, 20009).

In today’s world of easily accessible ways to reproduce documents, from laser printers to

high-speed copiers, it is interesting to pause and remember the time when making a copy took

considerably more effort. Back then, printing was distinctly different from copying, both in

quality of the reproduction and the effort it took to make the copies (Milford, 2002).

Today’s printing presses are fully-automatic, digital presses that are capable of not only

printing an entire newspaper, but also folding it properly. They are capable of using seemingly

endless varieties of fonts and colors (Walker, 2008).

New printers have revolutionized the digital photo printing industry. Epson Stylus Pro 9800

is a 44-inch printer that uses an 8-colour ultra-chrome k3 ink. It provides some of the highest

quality prints anywhere in the world (Walker, 2008).

As printers had evolved throughout the years, the functionality of the machines also increases

while still managing to decrease in price year after year. New printing technology has been

developing to produce the next generation printers that are capable of printing 3-dimensional

objects (Walker, 2008).

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According to an article “Print’s not dead, says technology giant Epson,” posters, tarpaulins,

billboards and building facades continue to bring the eyeballs toward establishments, thanks to

Instagram-worthy filters and palettes churned out by one of the most used, yet underrated

machines in the last few decades – the printer (Pedrasa, 2016).

“There’s always a need for printing,” said Pamela L. Albar, Epson Philippines Corp.

commercial and industrial department head. She said the printing industry is the least affected

when the economy is down, since businesses still need to attract customers through ads (Pedrasa,

2016).

“Big businesses such as food companies are not the only ones buying these big printers, but

also smaller businesses tapped by firms with large printing needs” (Pedrasa, 2016).

Modern technology is radically changing the way publications are printed, inventoried and

distributed (NIIR Board of Consultants & Engineers, 2016). In fact, knowledge of technology is

one of the 21st century skills identified as important to be developed among learners. Work is

made easier due to the aid of print materials which are printed, drawn or illustrated (Brawner,

2015).

Like any other businesses and investments, a tarpaulin printing business plan is a prerequisite

for anyone who would like to enter this line of business. Business plan covers the location,

overhead costs, input capital, risk and reward ratio, ROI, projection and more. This is like the

mainframe of the tarpaulin business that you will build. Permits are now easier to apply for your

company name via online. Unlike before when you have to fall in line for the next 4-6 hours and

knowing the computer broke down. Tarpaulin printing business package, ask any suppliers you

can find via online through Google search or testimonies of existing printer owners. In terms of

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warranties, brands have different warranties specifically on heads and the machine itself. It is

best to check the limitations of warranties to avoid early damaged heads. For tarpaulin business

setup and tips, it is always best to prepare a proper ventilation for large format printing machines,

as these are solvent-based. These are the proper guidelines if you are planning to enter in the

tarpaulin printing business (Tarpaulin printing business in Philippines, n.d.).

Starting a tarpaulin printing business in the Philippines is both rewarding and exciting;

imagine seeing your printed materials in billboard, malls, supermarkets and other outdoor

execution (Tarpaulin printing business in Philippines, n.d.).

Coffee is among the most widespread and healthiest beverages in the world. It is known to be

a highly rich source of biologically active natural metabolites which possess therapeutic effects

(caffeine) and functional properties (chlorogenic acids). Therefore, coffee can be considered a

drink which has different positive effects on human health such as cardioprotective,

neuroprotective, hepatoprotective, nephroprotective. However, heavy coffee consumption may

be related to some unpleasant symptoms, mainly anxiety, headache, increased blood pressure,

nausea, and restlessness. During the past two decades, several studies have indicated that there is

a close correlation between consumption of coffee and incidence of depression. In addition,

phytochemical studies showed that caffeine is the main responsible constituent for antidepressant

effects of coffee through multiple molecular mechanisms. The aim of the present paper was to

collect the latest literature data (from 1984 to 2014) on the positive and negative impacts of

coffee consumption on the major depressive disorders and to clarify the role of bioactive

constituents of coffee in the related different clinical trials. To the best of our knowledge, this the

first review on this topic.

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B. Foreign Studies and Local Studies

Because of the lack of formal training of managerial and technical personnel and inadequate

investment in new technology, the printing and publishing industry in the Philippines is

constrained. Low barriers to local entry have contributed to the explosion of printing companies

in the country. The large number of players in this fragmented industry, coupled with high exit

barriers, has resulted in stiff competition among printers, in which many strive to lower their

prices so as to get business or to simply sustain their operations. Many firms have compromised

the quality of their products just to compete with smaller firms that offer lower prices, since the

domestic market is extremely price sensitive (Habaradas, Tullao, Jr., 2001).

Local printers are, therefore, discouraged from investing in technology and training for fear

that profitability would be influenced by low prices rather than the quality of their products.

Most of local printers settle for the domestic market, and consequently limit their profitability.

Even in the Philippines, local printers are faced by high operating costs due to inefficient

processes, and due to the price of paper and other inputs, most of which are imported. They

suffer from ever thinning margins and preventing them from upgrading their technological and

human resource capabilities, since they could not increase their prices (Habaradas, Tullao, Jr.,

2001).

According to Melanio Torio, Director of the National Printing Office and Chairman of the

Printing Industry Board Foundation, Inc., in his paper "Increasing Production and Cutting Costs:

Keys to Surviving the Competitive World of Filipino Printers" (Torio, 2000), the printing

industry in the Philippines is composed of around 5,000 printing and graphic imaging

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companies. Of this total figure, roughly 70% operate in Metro Manila and the rest are located in

major cities and economic centers around the archipelago. Aside from the large number of

printing companies, there has been a dramatic increase in the number of design and graphic

imaging service companies over the past few years. This can be attributed to the rapid

development of pre-press technology and the dramatic reduction in the cost of computer

hardware (Habaradas, Tullao, Jr., 2001).

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