CHAPTER 1 THE PROBLEM: BACKGROUND AND RATIONALE Pets are animals that can be friendly and loyal.

There are plenty of people who treat their pets as if they are a part of the family. No matter the size, shape, breed or species of a pet, they are there to provide companionship. Some pet owners like to shower their pets with attention and gifts. Pet owners enjoy using items such as dog pajamas or colorful aquarium gravel to spice up a pet's life and show their appreciation for the unconditional love their pet provides. Some items are weird, some are extravagant and some are just what they need to be happy and healthy. In Iloilo, pet owners buy pet supplies and pet clothes in different kinds of stores like pet clinics, groceries and hardware stores which do not have the complete lines. Fashion Pet will address all these needs. It is a one stop shop to make your pets feel and look beautiful. The Boutique will be located at Plazuela de Iloilo a place where you can meet many Ilonggo pet lovers and their pets. It will offer the best pet products, services and expertise to help care for your pets. The justification for the project was to accommodate the need for these pet products in Iloilo City and to establish it in a place that is most convenient for the pet owners and enthusiasts.

Objectives of the Study This Study was intended to find out the feasibility of putting up a Fashion boutique for pets at Plazuela de Iloilo, Manduriao Iloilo City with the following specific objectives: 1. To determine the acceptability and the market segment of a fashion boutique for pets in Plazuela de Iloilo. 2. To calculate the saleability of the products. 3. To compute for the profitability and return on investment. 4. To solve for the payback period. 5. To verify the viability and sustainability of the business.

Scope The purpose of this study is to identify whether a fashion boutique for pets is a viable and sustainable business. The questionnaire made by the researcher and validated by experts was floated to people at Plazuela de Iloilo on the day when an event was held participated by many Iloilo pet owners and lovers. Other questionnaires were given to selected pet shops and clinic located around the City. The business will be located at Plazuela de Iloilo Manduriao, Iloilo City. The fashion boutique for pets will cater to the needs of those pet owners who want to pamper their pets with clothes, accessories and other pet supplies. It will also cater the needs of those people who would want to buy items as gifts to their friends or family member who have pets.

In order to analyze the problems, the researcher used different accounting and statistical tools. These accounting tools were the sources to have concrete bases to illustrate and answer the problems clearly. Users The main users people who have pets and are living in Iloilo City. It will cater to anyone who wants to buy their pets with clothes, accessories and supplies for their pets to spice up their life and to make them look more attractive during pet shows, pet competition and other pet gatherings.

Beneficiaries The following persons will benefit from the study: The Investors and the Owner. They will gain benefits from the profits made by the business. Graduates of any four-year course. They can be benefited through employment and work as sales person or cashier. Future Researchers. They can use this study as source of data. Definition of terms For clarity and understanding, the following terms were defined:

Fashion. Is a general term for a popular style or practice, especially in clothing, foot wear, or accessories. (www.wikipedia.org) It is used in the study as such as a garment, that is in the current mode. Boutique. Is a small shopping outlet, especially one that specializes in elite and fashionable items such as clothing and jewelry. (www. Wikipedia.org) It is used in the study as a small retail shop that specializes in gifts, accessories. Pet. A domesticated animal kept for pleasure rather than utility. (www.meriamwebster.com) In the study it used to refer to a tame animal kept in a household for companionship, amusement, etc. Saleability. Is a technical analysis term used to compare performances of fashionable clothes, and something

different trading systems or different investments within one system. (www.wikipedia.com). In the study it means how well does the product or items sell. Payback period. The length of time required to recover the cost of investment. (www.investopedia.com) In the study it is used to mean the period of time required for the return on an investment to "repay" the sum of the original investment. General Organization of the Study

Chapter 1 introduced what the study was all about, what were the perceived needs and how the researcher addressed those needs. It presented the objectives of the study, the scope, users and beneficiaries of the study. Also, definitions of some terms were clarified in this Chapter. Chapter 2 contained the related literature of the study, the Legal bases which discussed the laws governing the protection and welfare of all animals. The related local and foreign studies and the local studies were also presented. Chapter 3 showed the steps and methods used in the data gathering of the study. Statistical tool used such as frequency count was explained in relation to the problem. Accounting formula and financial ratios were discussed in reference to the specific problems. Chapter 4 discussed the environmental scanning of the business as well as the different aspects of the feasibility such as market, management, technical, financial and socio-economic aspect. Chapter 5 provided the projected assumptions of the financial and profitability aspects of the establishment. Chapter 6 presented the analyses of the financial ratios and payback period that supported the profitability of the project. Chapter 7 presented the results, conclusions and recommendations about the study.

CHAPTER 2 REVIEW OF RELATED LITERATURE Related Legal Bases Republic Act No. 8485 Republic Act No. 8485 is an Act to promote animal welfare in the Philippines otherwise known as the Animal Welfare Act of 1998. It is the purpose of this Act to protect and promote the welfare of all animals in the Philippines by supervising and regulating the establishment and operations of all facilities utilized for breeding, maintaining, keeping, treating or training of all animals either as object of trade or as household pets. For purposes of this Act, pet animal shall include birds. It was also stated in this Act that it shall be unlawful for any person to torture any animal, or to neglect to provide adequate care, sustenance or shelter, or maltreat any animal or to subject any dog or horse to dogfights or horsefights, kill or cause or produce to be tortured or deprived of adequate care sustenance or shelter, or maltreat or use the same in research or experiments not expressly authorized by the Committee on Animal Welfare.

Republic Act No. 9482 Republic Act No. 9482 aslo known as the Anti-Rabbies Act of 2007 is for the control and elimination of human and animal rabbies, prescribing penalties for violation thereof and appropriating funds therefore. In Section 5 of this Act state that all pet owners shall be required to: (a) have their dog regularly vaccinated against rabbies, (b) submit their dogs for mandatory registration, (c) maintain control and not allow it to roam the streets or any public place without a leash, (d) provide pets with proper grooming, adequate food and clean shelter (e) report immediately any dog biting incident, and (f) assist the dog bite victim immediately and shoulder the medical expenses incurred and other incidental expenses.

Local Related Literature Dog Walk for a Cause Last October 23, 2011, Sunday Philippine Dog Owners (PDO) celebrated their First Anniversary through a grand EB Dog Walk for a Cause at Quezon City Memorial Circle with a theme For one day we walk as one. The event was held from 6

Am to 10 Am. Its objective was to share love on the PDO Day by joining the walk and share any kind of donations like dog food, treats, leashes, collars, dog toys, medicines, dog bowls and even cash donations. Proceeds were directly given to the Philippine Animal Welfare Society (PAWS).

World Animal Day Philippines 2010 The Philippine Animal Welfare Society (PAWS), in cooperation with SM Mall of Asia, Alpo and Friskies, had mounted the 2010 World Animal Day Philippine Celebration last October 2, 2010 to celebrate animal life in all its forms and acknowledge the diverse roles of animals play in our lives from being our companions supporting and enriching our existence to bring a sense of wonder into our lives. Foreign Related Literature Animals Have Rights Too According to the book 'Animals Have Rights, Too' by Michael W. Fox, animals can provide valuable learning experiences that will help a child mature into a more responsible and caring adult. In other words, teaching kindness toward animals can indirectly benefit society because humane attitudes affect our relationships with both animals and people.

Bless the Beast In Jeffrey G. Sobosan's (1991) book entitled, 'Bless the Beast: A Spirituality of Animal Care', he said that it is quite understandable that some individual might love animals more than other human beings. We regularly find in animals the expression of virtues whose absence or unreliability in our own kind makes these animals attractive, evoking our attention to them. In their company the hurt of human behavior towards us is somewhat healed, our spirits can find harbors of peace, our fears withdraw. Local Related Studies Manila Has It In Manila there are many establishments catering pets needs such as animal toys, veterinary clinics, and finding a new four-legged family member. For pet food, most supermarkets have a wide range of varieties available. In Makati, the best range and value for money you can find is at Landmark. They have a bigger variety of dog food compared to cat food for the best price in Manila. Brushes, toys, carry cases, and even clothes (Modelled by Aslan Angma) can be available in Manila. One can go to the other pet stores for their pets needs. There is a good pet store located at the Shangri-La Mall in Mandaluyong called Bow & Wow. Although it is a little expensive, they offer organic foods that it is a truly healthier option for the pets. For toys, you can make a shop at Cartimar market as they have a wide range to choose from. These are other pet stores in Metro Manila, pet lovers can buy their needs. Moving with Pets

Moving with pets especially long distance travels is stressful on most animals. The carrier is most important. They must be enclosed with enough room for the pet to stand naturally, turn around and lie down. To leave the Philippines with your pet, you will need an export permit. This expires quickly, within 3 days. To get the export permit, you will need a current health and vaccination certificate from a veterinarian. All wire cages are prohibited. The carrier should have one side with full ventilation and a total of 14% of the total wall space should be ventilated. The carrier should have a rim around it that prevents the ventilation from being blocked. Importing pets requires an import permit. This can be handled by any reputable Relocation company. In order to process the permit, the vaccination record and picture of your pet is required. Properly mark the kennel with notice of "Live Animal" and arrows indicating "This way up". Your pet's name, and your name, address, and contact details should be indicated on the outside of the cage. Foreign Related Studies Booming Pet Industry While many businesses in the United States are suffering from the downturn, the pet industry is not one of them. The U.S. market is a whopping $36 billion in pet business. Americans spend almost $500 million a year just on the latest in pet fashions real cashmere sweaters, fleece jackets, stylish hats, rain gear and the like.

Brands such as Gucci are introducing their own brand of leashes and silver dog food bowls, for the discerning canine. The trend has only just started. According to the American Pet Product Manufacturing Association, 45 percent of all pet owners give gifts to their pets during holidays, birthdays, graduation from obedience school and other special occasions. Seventy percent of all dogs get such gifts. About 45 percent of cats get gifts and half of all birds receive gifts for special occasions.

Pets Lower Incidence of Allergies and Asthma Contrary to expectations, pet owners actually have less allergies and asthma than people who are not exposed to animal fur and dander. Research conducted at the University of Wisconsin-Madison shows that infants raised in a dogowning house from birth had fewer allergies and eczema by the time they were a year old than newborns who came home to a pet-free household. Infants who were exposed to dogs showed 19% incidence of allergies, while 33% of the pet-free children had allergies at one year of age. Infants with dogs also had higher levels of certain immune system chemicals.

CHAPTER 3 RESEARCH METHODOLOGY In this Chapter, the researcher showed the steps and the tools used in order to gather the data that were used in this paper. Also found in this chapter, were the descriptions of the research design and instrument, statistical techniques and financial formula on how the problems were solved through the gathered data from the results of the survey conducted. Research Design The Study was conducted through the of descriptive research design which helped the researcher in: (1) providing facts on which scientific judgment may be based, (2) providing essential knowledge about the nature of objets and persons, (3) for closer observation into the practices, behavior, methods and procedures, (4) and for playing a large part in the development of instruments for the measurement of the gathered data

to answer problem no. 1 which was about the acceptability and market segment of the project. Research tools and Instruments The data gathering instrument of the researcher has developed questionnaire which was validated by at least three experts. This questionnaire was used for the purpose of the investigation and to have concrete basis in answering the problem of the acceptability and market segment of the of the proposed fashion boutique for pets to the public. Respondents The respondents of this feasibility study were 50 randomly selected persons. Majority of the data were conducted at Plazuela de Iloilo and the remaining were surveyed from pet clinics and other pet shops found in the city of Iloilo. The results were then used as the basis of the study's data on the financial aspect and its viability. Data Gathering and Analysis Procedure After the approval of the questionnaire by the Dean of the College of Accountancy and Business, the researcher handed it out to the respondents who were given sufficient time to answer. The completed instruments were gathered, tabulated, analyzed, interpreted and discussed. In order to answer problem no. 1, the statistical analysis used was frequency count. In the study, frequency count was used to determine the acceptability and market segment of the project. Anderson, David (2006) says that frequency distribution allows for the compression of data into a table. The table organizes the data into classes or

groups of values describing characteristics of the data. For example, students grade distribution is one characteristic of graduate class.

Formula for frequency count is: Frequency = no. of repeated events/ total no. of possible events

Objective no. 2 was about the salability of the products of the fashion boutique. The statistical method used was the frequency count. To address objective no. 3, the formula for Return on Investment (ROI) and Return on Equity (ROE) were used as well as profit margin to determine the profitability and Return on Investment of the fashion boutique. According to Farris, Paul W. (2010) return on investment is one way of considering profits in relation to capital invested.

ROI (Return on Investment) = Net Profit/ Total Investment x 100%

Another accounting tool used in the project is the return on equity. Loth, Richard (2009) says that return on Equity measures the efficiency of the business in generating profits.

ROE (Return on Equity) = Net Income/ average ordinary equity

Net profit margin is a measure of profitability, mostly used for internal comparison. According to Kennon (2010) profit margin tells you how much a profit a company makes for every one dollar it generates in revenue or sales.

Net Profit Margin= Net Income/ Revenue x 100%

In solving problem no. 4 the accounting tool used was the computation of the payback period. It was composed by the total remaining to be paid back at the start of the payback year, to bring cumulative cash flow to 0 divided by the total (net) paid back in the entire payback year plus the number of years before final payback year. Expert on this is David L. Michael (2012) says the shorter the payback period, the better. It means money was earned back quicker.

Payback period = Investment/ Annual Cash Returns

For the final problem no. 5, the fashion boutique's viability and sustainability were determined by computing the current ratio. According to Averkamp (2010) rurrent ratio was composed of current assets divided by current liabilities. It is a measure whether or not a business has enough resources to pay its debts over the next twelve months.. The yearly increase in ROE and ROI indicated the project's sustainability.

Current Ratio = Total Current Assets/ Total Current Liabilities

In this Chapter the steps and tools used in gathering data were discussed. The researcher used the descriptive research design. The questionnaire was used to survey the 50 persons at Plazuela de Iloilo and the others at selected pet shops and pet clinics in Iloilo City. The statistical treatment and accounting tools were also presented. To answer problem no. 1, frequency count was used. For problem no. 2, formula for saleability was used. For problem no. 3, ROE and ROI was used. For problem no. 4 formula for payback period was used. Finally for problem no.5 current ratio was used.