CHAPTER 1 PROJECT BACKGROUND This chapter describes the structure and composition of the proposed project and provides the reader with the basic knowledge necessary to understand the proposed business. A. Product/Project Description The proponents will be putting up a food and beverage business which is a doughnut café. This could be similar to Dunkin Donut that has a dining area, music background, and free WIFI access for surfing the net and researching as an attraction. The proponents also thought of providing a toilet inside the establishment for the costumers need. This proposed business is intended for those who want to enjoy the food, beverage, and all other services and amenities of a food service establishment at low and reasonable cost. B. Name of Business
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CHAPTER 1
PROJECT BACKGROUND
This chapter describes the structure and composition of the proposed project and provides
the reader with the basic knowledge necessary to understand the proposed business.
A. Product/Project Description
The proponents will be putting up a food and beverage business which is a doughnut
café. This could be similar to Dunkin Donut that has a dining area, music background, and free
WIFI access for surfing the net and researching as an attraction. The proponents also thought of
providing a toilet inside the establishment for the costumers need.
This proposed business is intended for those who want to enjoy the food, beverage, and
all other services and amenities of a food service establishment at low and reasonable cost.
B. Name of Business
The proponents agreed to name the business “Donut Bite” because it sounds appealing
and can easily be remembered by the target market.
C. Project Proponent and Share Ownership
The five proponents of “DONUT BITE” agree that the share of ownership will be based
on equal-share partnership wherein, each proprietor will give Php 250,000.00 investment,
totaling to Php 1,000,000.00. The proponents’ name, share of investment and ownership is
presented in the table below.
Table 1
Share of Ownership
D. Proposed Location (See Appendix –A)
The business will be renting a commercial space located at 136 ODIE Building, Congressional
Avenue, Quezon City. The proposed location is near commercial establishments, residential
areas – such as condominium and housing. Schools and colleges such as AMA Computer
University, STI College, and San Lorenzo. Public utility vehicles and private vehicles can easily
reach the place. By taking a jeepney that pass the routes of Project 8 to Quiapo via Quezon
Avenue. For private vehicles coming from Novaliches, they can could take Mindanao Ave. then
turn left to Congressional Ave., and those who would be coming from Quezon City Memorial
Circle they could take Visayas Ave., the turn left to Congressional Ave.
The proponents chose this place because the proponents think that this business will
become successful in the proposed location.
Name Share of Capital Investment Share of Ownership
Christian Madulid Php 250,000.00 20%
Antonio Canlas II Php 250,000.00 20%
Christian Jay Vargas Php 250,000.00 20%
Jordean Jayson Dionisio Php 250,000.00 20%
Kelvin Lloyd Corpuz Php 250,000.00 20%
TOTAL Php 1, 250, 000.00 100%
E. Company Vision and Mission
Vision:
“To be the best distributor of doughnuts in the Philippines.
Mission:
Being the best means providing customers with unique and delicious doughnuts. Serving
every customer a standard quality and proper hygiene and making their bite a joyful
experience”.
The “Donut Bite” will be very much positive in offering a lot of services to satisfy
customers’ needs.
“Donut Bite” will serve with honesty and credibility.
“Donut Bite” will be always “open-minded” to those other competitors and will seek only
the best.
To create an environment for friends’ and family’s bonding.
To treat everyone as an honored guest in his/her own home.
F. Logo/ Rationale
The proponents decided to propose this picture as the logo of the business. This logo
identifies that the business are selling is doughnut. The doughnut has a bite on it because it’s
show that many people love bite and eating doughnut especially the kids. The color red, as the
highlight of the name to the proposed business because Red is the warmest of all colors, Red is
the color most chosen by extroverts and one of the top picks of males, it is also a protection from
fears and anxieties, and especially to remind the proponents that they need to show courage
throughout the difficult time. The proponents also put a square shape which represent that the
proponents need to treat every customer equally. (See Appendix B- Logo)
Chapter 2
SITE ANALYSIS
Site analysis is an inventory completed as a preparatory step to site planning, a form of
urban planning which involves research, analysis, and synthesis. Its primarily deals with basic
data as it relates to a specific site. The topic itself branches into the boundaries of architecture,
landscape architecture, engineering, economics, and urban planning. (Wikipedia- The Free
Encyclopedia)
A. Visibility from the Main Arteries
136 ODIE building Congressional Avenue Quezon City is a heavily populated district.
Although it is primarily a residential area, there are also many industrial facilities and
commercial areas near the place.
The proposed business site is situated in a developed area along Congressional Avenue
Quezon City. In every business, visibility is important for attracting customers, especially when
it is sited in a dynamic community. Since it is located near the schools such as AMA Computer
University, STI College, and San Lorenzo there are also other establishments such as banks,
coffee shop, car wash, malls, and markets near the area.
DONUT BITE is near the pick-up and drops off points of the public utility vehicles and
therefore a number of people are expected in the area most of the time. Also, most of the minor
streets in the area connect to the main road.
B. Visual Appeal of the Area and Sorroundings
The location of the business is in Odie Building along Congressional Avenue Quezon
City. The business is new in the area, resident and non- resident may be curious about it and take
a few minutes of their time to visit it. Nowadays the number of establishment are growing
rapidly like having LRT in Munoz and MRT passing along EDSA road. And infrastructures like
roads, telecommunications, water supplies and power supply that provide good services.
Traffic Count Results
The traffic count results show the number of public and private vehicles and pedestrains
passing the street of Congressional Avenue daily. The outcome of the traffic count assured the
proponents that DONUT BITE is really accessible to everyone and a high vehicular and human
flow is indicative of a big market.
C. Area Growth Pattern
The proposed location of the business belongs to Brgy. Project 8, and according
to the population growth survey of Quezon City government it has a slow growth rate.
Although this would be an unfavorable factor, the proponents are sure that it would not
affect their business because the proposed location is at the center of transport, near to
schools and colleges, and commercial activities.
D. Accessibility
“ODIE Building” where DONUT BITE would be put up is located along
Congressional Avenue Quezon City which is highly accessible to potential customers
taking puplic and private transportation. Commuters who want to avail of the products
and services of DONUT BITE can access it by taking a jeepney that pass the routes of
Project 8 to Quiapo via Quezon Avenue. For private vehicles coming from Novaliches,
they can could take Mindanao Ave. then turn right to Congressional Ave., and those who
would be coming from Quezon City Memorial Circle they could take Visayas Ave., the
turn left to Congressional Ave.
1. Target Market
The proponents will be establishing a donut business in ODIE building Congresional
Ave. Quezon City. The prospective customers of “DONUT BITE” are the students from
S.T.I. College, Collegio De San Lorenzo, and John Dewey. Villages like Congressional
Village and Cityville Executive Village. And commercial establishment such as Cherry
Foodarama, North Ridge, and Circle C. Walter Mart near the area. The proponents
predicted that the said target market would patronize DONUT BITE.
2. Raw Materials and Suppliers
DONUT BITE is just a few minutes ride from the market, which will make it easy for the
proponents to purchase their raw materials.
For the cooking equipments the proponents decided to get it from “Commercial Bakery
Table 3.5 shows that 6 or 12% of the respondents are the business man/ women. 13 or 26%
belongs to the company employee. 5 or 10% are belongs to the teachers/ professors. 16 or 32%
belongs to the students and the remaining 10 or 20% belongs to others.
Table 3.6
Respondents’ Snack or Merienda Preference
Frequency Percent %
Pizza 8 16 %
Pastries 15 30 %
Cakes 5 10 %
Doughnut 12 24 %
Others 10 20 %
TOTAL 50 100 %
Frequency Percent %
Business Man/ Woman 6 12 %
Company Employee 13 26 %
Teacher/ Professor 5 10 %
Students 16 32 %
Others 10 20 %
TOTAL 50 100 %
Table 3.6 shows that 8 or 16% of the respondents prefer pizza, 15 or 30% favor to
pastries, 5 or 10% favor to cakes, 12 or 24 prefer doughnut and the remaining 10 or 2o% would
like to eat other foods.
Table 3.7
Respondents’ Beverage Preference
Table 3.7 show that 15 or 30% of the respondents prefer juice/ ice tea for their drinks,
follow by 13 or 26% who have a preference of soda, 10 or 20% favor coffee while, the remaining
12 or 24% of the respondents prefer other beverages such as fruit shakes etc.
Table 3.8
Respondents’ Response if They Will Patronize the Proposed Business.
Table 3.8 show that the greater part of the respondents, that is 27 or 54% would patronize
such establishment as DONUT BITE, while, 23 or 46% answered no.
Frequency Percent %
Juice/ Ice Tea 15 30 %
Soda 13 26 %
Coffee 10 20 %
Other 12 24 %
TOTAL 50 100 %
Frequency Percent %
YES 27 54 %
NO 23 46 %
Total 50 100 %
It is evident that majority of the respondents who answered positively would be the
possible market of DONUT BITE.
Table 3.9
Respondents’ Response How Often They Ate Doughnut.
Table 3.9 show that 13 or 26% says that they ate doughnut daily follow by 26 or 52% who says that they ate doughnut weekly and 11 or 22% for the people who ate doughnut monthly.
Table 3.10
Respondents’ Response if They Love Toppings for Their Doughnut.
Table 3.10 show that 14 or 28% love eating doughnut with toppings and 36 or 72% says no.
Frequency Percent %
Daily 13 26 %
Weekly 26 52%
Monthly 11 22%
TOTAL 50 100 %
Frequency Percent %
YES 14 28 %
NO 36 72 %
TOTAL 50 100%
Table 3.11
Respondents’ Response for Doughnut Toppings.
Table 3.11 15 or 30% love sprinkles for their toppings, 12 or 42% love nuts 10 or 20% love mallows and 13 or 26% love kisses for eating their doughnuts.
Table 3.12
Respondents’ Response what Establishment They Prefer for Spending Their Snacks.
Table 3.12 show that 15 or 30% prefer to eat their snacks to Dunkin donut, 17 or 34% prefer mister donut, 10 or 20% prefer krispy crème and 8 or 16% prefer go nuts donuts for their snacks or merienda.
Frequency Percent %
Sprinkles 15 30 %
Nuts 12 42 %
Mallows 10 20 %
Kisses 13 26 %
TOTAL 50 100%
Establishment Frequency Percent %
Dunkin donut 15 30 %
Mister donut 17 34 %
Krispy Crème 10 20 %
Go nuts Donuts 8 16 %
TOTAL 50 100%
Table 3.13
Respondents’ Response How Often They Pass along Congressional Avenue.
Table 3.13 show that 33 or 66% answers that they always pass congressional avenue. 14 or 28% says sometimes and 3 or 6% says never.
Table 3.14
Respondents’ Response if They Patronize the Donut Bite along Congressional Avenue.
Table 3.14 show that 29 or 58% answers that they will patronize the new business in the area and 21 or 42% says no.
E. Competitive analysis
This is one of interacting components in marketing with the competition around, the
proponents will strive to develop and improve their products and services. It is also important in
marketing to outperform your competitors with the unique and classify the competition around
the vicinity.
Frequency Percent %
Always 33 66 %
Sometimes 14 28 %
Never 3 6 %
TOTAL 50 100%
Frequency Percent %
YES 29 58 %
NO 21 42 %
TOTAL 50 100%
1. Direct competitors:
A direct competitor is an establishment that offers the same products and services as those the proposed business will offer.
Table 3.15
Direct Competitors
2. Indirect Competitors
Indirect competitors are establishment that offer all or some of the products and services that the proposed business offer.
Name of establishment Description Location
(Product & services offered)
Dunkin Donut North EDSA, Q.C. Metro Manila, Phil. An establishment that
Mister Donut offer donut Ground Floor, Circle C Center,
Congressional Avenue, Corner
Jupiter Street, Quezon City, Metro
Manila
Julie’s Bake Shop A bake shop that primarily Congressional Rd, Quezon City,
offers Bread and other baked Metro Manila products.
Table 3.16
Indirect Competitors
F. Marketing Plans and Strategies
Marketing is the process of continuously and profitability satisfying the target customers’
needs wants and expectations superior to competition.
Moreover, marketing plans outlines how businesses intend to grow in the market place
and win against competition. Below are the marketing plan from pre-opening/ opening and a
three- year plan, which focuses on the product, promotion, prices and the place.
1. Pre- opening and opening
In the pre- opening of DONUT BITE, the proponents will have banners, signage, and
tarpaulins where the target market could easily see them and attract their attentions, flyers will be
distributed before the opening so that the market will have an idea that there will be a new
Name of establishment Description Location
(Product & services offered)
KFC The primary product is chicken and Congressional Ave. cor. also classified as fast food chain Mindanao Ave., Brgy Bahay Toro Quezon City .
Jollibee A fast food chain, which offers Pangilinan Cor. Congressional Ave., burger, chicken and other food& Brgy. Bahay Toro, Quezon City
Beverage items.
Tropical Hut food establishment that offers Congressional Avenue, Quezon catering service City, Metro Manila
Chow King a fast food chain, which offers Circle C Center, Congressional Chinese food. Avenue, Quezon City
Segregation of biodegradable and non- biodegradable waste disposal will be
implemented.
Used empty bottles, cans and others will be sold to the nearest junkshop.
QTY UNIT MATERIAL UNIT COST ACTUAL COST
1 Pcs. Bell Php 95.00 Php 95.00
1 Pcs. Calculator 199.00 199.00
1 Pcs. Cash Box Deposit 419.00 419.00
1 Pcs. Fire Extinguisher 2,199.75 2,199.75
1 Pcs. Puncher 79.75 79.75
1 Pcs. Receipt Holder 78.00 78.00
1 Pcs. Ruler 13.75 13.75
1 Pcs. Scissor 13.75 13.75
1 Pcs. Stapler 54.00 54.00
1 Pcs. Emergency Light 699.00 699.00
1 Pcs. Wet Floor Sign 389.50 389.50
TOTAL Php 4,240.50
J. OFFICE TOOLS
Chapter 6
FINANCIAL FEASIBILITY STUDY
This aspect will specify term that will determine the project profitability.
This is the management- level responsibility for capital procurement, fund allocation, capital
structuring, and profit administration. Moreover, this will show the preparation that is vital to the
success of the proposed business. (Ditablan 2000)
A. Financial Feasibility Object:
1. To determine the working capital requirement of the total project cost.
2. To provide a detailed analysis of all monetary information such as total business
cost, initial capital requirement, source of financing, financial statement and
financial analysis.
3. To determine whether the proposed business is feasible through the ratios
presented.
B. Financial Assumptions:
1. Projection years is three (3) years.
2. Total investment capital of Php 1, 250, 000.00. The proponents will contribute
Php 250, 000.00 each.
3. Total project cost is presented to justify the capital investment.
4. Increase of 10% in food and refreshment sales annually, because of expected
increase in volume of customer’s.
5. Purchases, allowance for spoilage and merchandise inventory is projected through
perpetual inventory. On the second and third year there is a 5% increase.
6. Salaries and wages depend on the position of the employee’; there will be no
increase on the salaries and wages for the first three years except if the government
mandates an increase.
7. SSS/ PHILHEALTH/ PAG-IBIG contribution varies on the range of the salaries
and wages.
8. Increase of rent level and light & water by 5% annually.
9. Communication and cable TV is fixed through the three years of operation.
10. Advertising and promos costs will decrease on the second and third year because
the theme decors may be recycled.
11. Straight line method is used to compute for the depreciation of the equipment and
furniture and fixtures, presented in tabular form.
12. Allowance for breakages is 5% for the kitchen, dining and office tools.
13. Office supplies will increase by 5% annually as well with the janitorial supplies.
14. For the repairs and maintenance there would be a 50% increase in the second year
and will be retained by the third year.
15. There would be owner’s drawing for the second and third year.
C. Total Project Cost
FIXED CAPITAL COST
Leasehold Improvement Php 293, 491.22
Kitchen Equipments 65, 619.75
Dining Equipments 86, 398.50
Furniture & Fixtures 102, 050.00
Kitchen Tools 2, 862.50
Dining Tools 1, 672.00
Office Tools 4, 240.50
Dining/ Office Supplies 1, 513.75
Janitorial Supplies 3, 449.75
TOTAL FIXED CAPITAL COST Php 532, 633.75
Working Capital (1 Month)
Salaries and Wages Php 56, 386.02
TOTAL
PRE- OPENING CAPITAL:
Prepaid rent (3 mos. Deposit) Php 69, 000.00
Registration (DIT/ BIR/ SEC) 4, 670.00
Business Permit & licenses 3,300.00
Electrical Installation 3, 000.00
Water Installation 1,000.00
Contengencies 478,690.32
PRE-OPERATION CAPITAL 559, 660.32
GRAND TOTAL PROJECT COST Php 1, 148,680.09
D. Sources of Fund/ Capital
The total estimated capital investment for DONUT BITE is Php 1,250, 000.00. The
proponents will contribute Php 250, 000.00 each as the initial investment for the proposed
business.
E. Schedules
1. Sales/ Income
Projected Yearly Sales
Food
YEAR 1
Beverage
Food
YEAR 2
Beverage
FoodYEAR 3
Beverage
January February March April May June July
Food
YEAR 1
Beverage
YEAR 2 Food
Beverage
YEAR 3 Food
Beverage
August September October November December Total Sales Grand Total
Chapter 7
Socio-Economic Feasibility Study
Every business has its main aspiration which is to maximize the profit. Even though it is
the main goals of every business ventures, it should always comply with the considerations of
socio-economic aspects. The success of a business not only lies on the profit but on its social and
economic responsibilities and the benefits of the business to the employees, government, society
or community, suppliers and environment.
A. Objectives
1. To be able to know the duties and responsibilities of the proponents to the government,
environment and the society.
2. To be able to prevail over the worsening economic environment.
B. Project’s Employees
The proponents proposed business aims to provide employment opportunities through
hiring qualified workers to support their financial needs in terms of salaries and wages that are
appropriate to them. The proponents also provide a safe and healthy environment in the work
place, conducive to the physical and moral well being and growth of the employees.
C. Government
One of the problems that our country is facing right now is the high rate of
unemployment. Putting up a business will surely help reduce the rapid growth of unemployed
citizen by hiring qualified applicants. As years go by with a successful management, the
company will eventually expand and will continue to provide services to the people and to give
jobs to the competent and skilled aspirants.
From the taxes contribution from each employee along with the owners and the company,
the government has access to support organizations to reach out people in need in any way. It is
provide ways to help people improve way of living or contribution such as extending financial
support and to whatever t may serve best to the country.
A business must gain success, good reputation and trust by considering political and legal
aspects of the industry. Given that, the business should follow the laws and regulations of the
government. Such as:
1. Labor Code
Presidential Decree No. 442, such as amended a decree instituting a labor code thereby
revising and consolidating labor and social laws to afford protection to labor, promote
employment and human resources development and insure peace based on social justice.
2. Tax Laws
Tax Reform Act of 1997, Republic act No. 8424: An act amending the national internal
revenue code as amended and for other purposes.
3. Code of Sanitation
Presidential Decree 856: WHEREAS, the health of the people, being of paramount
importance, all efforts of public services should be directed towards the protection and
promotion of health and with the advance in the field of sanitation in recent years, there arises
the need for updating and codifying our scattered sanitary laws to ensure that they are in keeping
with modern standards of sanitation and provide a handy reference and guide for their
enforcement.
D. Other Beneficiaries
POPULATION:
In view of the fact that our country’s population is increasing very rapidly a greater
demand for food can be expected. Moreover, due to the problems constantly experienced by the
people regarding the economy and politics; the prices of commodities tend to increase. Because
of this, the proponents decided to put up “Donut Bite” where the proponents would offer good
quality service and nutritious foods that are affordable.
ECOLOGY:
Everyone has a responsibility to have a clean environment to live in, not only benefiting
to us but also with Mother Nature and our Creator.
The proponents are aware of the present picture of the environment; therefore the
proponents planned to the environmentalist by implementing reduce, re-use, and recycle. For
proper waste disposal, the proponents implemented the practice of segregating biodegradable and
non-biodegradable materials. Well interior designs were set up to serve as a diversion from the
unsightly scenes outside of the building.
Appendix C
Survey Questionnaire
Respondents,
Good day! We, the BSHRM and BS Tourism Students of Siena College, Quezon City would like to conduct a survey as a partial fulfillment in our course in HRM 111/ TRM 111 “Entrepreneurial planning (Introduction to Feasibility Study)”. The name of the proposed business is “DONUT BITE”. Kindly answer the following questions for us to complete the study and rest assured that all data and information gathered will be confidential.
Thank You!
PLEASE CHECK THE APPLICABLE ANSWERS.
1. RESPONDENTS PROFILE:
NAME: (OPTIONAL)
ADDRESS:
AGE GENDER STATUS
15 – 20 Male Single
21 – 25 Female Married
26 – 35 Separated
36 & above
MONTHLY INCOME / ALLOWANCE OCCUPATION
BELOW Php 10, 000.00 Business Man/ Woman
Php 10, 001.00 – Php 20, 000.00 Company Employee
Php 20, 001.00 – Php 30, 000.00 Teacher / Professor