PisoSite Cafe

__________________________

A Feasibility Study
__________________________

Presented to
The Faculty of Accounting Technology Program

In Partial Fulfilment of the Requirements in

Practicum 101

By:
Gelcar Ann M. Delicano
Hazel Daryl B. Comighud
Sharmaine Marie Faith F. Namalata

October 2018
 Table of contents

Page

Cover Page i

Title Page ii

Approval Sheet iii

Acknowledgement iv

Executive Summary v

List of Tables vi

List of Figures vii

Chapter

1 Marketing Aspect

Service Description 1

Target Market 2

Area Coverage 2

Consumer/Customer 2

Demand and Supply Analysis 3

Total Potential Demand 3

Supplier Competition 5

Competitor Analysis 7
 Pricing Structure 8

Projected Sales 9

Practices of Competitors 9

Marketing Strategy 10

2 Technical Aspect

Technical Requirements 11

Government Requirements 12

Production Process 12

Service Schedule 13

Labor and Machine Requirements 14

Operating Equipment 15

Office Equipment 16

Plant/Factory Location 17

Store lay-out 18

Waste Disposal System 18

Quality Control System 19

Service Cost 19

3 Organizational and Management Aspect

Form of Business 21

Organizational Structure 22
 Qualification of Employees 23

Recruitment and Selection Program 24

General Policies 24

Gant chart of Activities 25

4 Financial Aspect

Total Projected Cost 27

Source of Financing 28

Financial Assumptions 28

Projected Statement of Financial Position 29

Projected Income Statement 31

Projected Cash Flows Statement 33

Financial Analysis 34

Break Even Point 34

Payback Period 35

Profitability Ratio 36

Return on Investment 36

Gross Profit Ratio 37

Net Income to Sales Ratio 37

Liquidity Ratio 37

Current Ratio 39

Solvency Ratio 39

Debt Total Asset Ratio 39

 Equity Total Ratio 40

5 Socio-Economic Aspect

Customer 41

Community 42

Employment 42

Environment 43

Government 43

Appendices 45

CURRICULUM VITAE 51
 vi

List of Tables

Table Title Pages

X Potential Demand Market x

X Total Potential x

X Competitors Supply Analysis x

X Demand and supply Analysis x

X Competitors Advantages and Disadvantages x

X Pricing Structure x

X Computation of Projected Sales per year x

X Advertisement expense x

X Government Requirements x

X Service Schedule x

X Labor and Machine Requirements x

X Operating Equipment x

X Office Equipment x

X Qualification of Employees x

X Gant chart of Activities x

X Total Projected Cost x

X Break Even Point x

X Payback Period x

X Return on Investment x

x Gross Profit Ratio x

X Net Income to Sales Ratio x

X Current Ratio x

X Debt Total Asset Ratio x

X Equity Total Ratio x

 vi

List of Figures

Figure Title Pages

X Production Process x

X Business Location x

X Store Layout x

X Organizational Structure x
 iii

Approval Sheet

This feasibility study entitled “PisoSite Café’, was prepared submitted by Gelcar Ann M. Delicano,

Hazel Daryl B. Comighud and Sharmaine Marie Faith Namalata partial fulfillment of the

requirements for the subject Practicum 101 (Feasibility Study), has been examined and is

recommended for approval.

RITA C. NAMOC, CPA, MBA

Adviser

Panel of Examiners

Accepted and approved, after the presentation of the study with the grade of

______________.

PAQUITO P. PASIA JR., MM

Chairperson

OFELIA M. SEVILLA, CPA, MM ARNOLD C. ACEBUCHE, MM

Member Member
 iv
Acknowledgement

We, the researchers, would like to acknowledge the following people whose guidance,

supervision and cooperation helped us to meet our study’s objective successfully.

We, would like to express of heartfelt appreciation for the support of the panel member’s,

Mr. Paquito P. Pasia Jr., MM, Dean of School Of Business Management Education as their

chairperson. Ms Jocelyn G. Te, CPA, MSE, REB and Mrs. Ofelia M. Sevilla CPA, MM for giving us

their suggestions, comments and additional knowledge for improving this study.

To our adviser, Ms. Rita C. Namoc, CPA, MBA for her advices, expertise and insight

throughout the midst of the study.

To the effort of the group members who takes time on doing this study faithfully, yp our

parents who are always there to guide, inspire and support us financially, emotionally, emotionally,

physically and mentally and also to our respondents who takes time and effort in helping us to

achieve our total survey.

Finally, to God, the Almighty, who look up, strengthen us, help us to overcome all the trials

and challenges that we may face and we may be facing and also give wisdom to make us to be

more persevering on doing this study possible. We present this study with faith and reverence for

the glorification of his name. To God be the Glory.

The Researchers
 Executive Summary

Marketing Aspect on chapter 1 focuses the foundation of the preferred

business. This chapter discussed the service description, target market, demand &

supply analysis, marketing strategies and the capabilities of the business to attain the

target market. It is very important to plan business in order not to come up a negative

outcome. The much highlighted in marketing is the area coverage since it is primary

determinants of the customers to avail the said service. Proportion to the area is the

target market costumers that will avail our service. Pricing of service provided should be

in accordance of the income of the target market. Many marketing strategies were being

promoted to maintain a profitable operation.

On the other hand, technical aspects deal with the requirements needed in

the operation, the dos and don’ts of the operation. To operate legally business should be

permitted by government agencies and provide the service that will surely give security

to the costumers. The shop layout and business location should be a safe place to every

costumer. Fire exit and waste disposal should be prioritize because we are required by

the government to maintain the welfare of every individuals. The operational process

also are being discussed in this chapter because they are part of every business

success.

Creating business wasn’t easy because it requires a big amount of money

that will sustain the operation. PisoSite is form by contributing mutual agreement and

funds. Every business has an organizational structure that determines the capabilities of

the business. Employees qualification should be followed since we are dealing with

much innovative service. This chapter has implements general policies that everybody
on the business should observe. Gantt chart of Activities shows the seven month

allocation of certain activities were done before the business starts the operation. It is

very important to plan business with enough time consider.

This chapter deals financial aspect of the business. It shows the breakdown of

the projected cost allocated, the source of financing and financial statements. By having

this chapter we can identify either our business operates well or not. Given the financial

position that reports an entity's assets, liabilities, and the difference in their totals. The

income statement shows the business reports a company financial performance over a

specific accounting period. Financial performance is assessed by giving a summary of

how the business incurs its revenues and expenses through both operating and non-

operating activities. It also shows the net profit or loss incurred over a specific accounting

period. Our financial performance is quite efficient and profitable for the five year

projected. Our cash flow shows the in and out flow of cash within 5-year operation.

Since we have no liabilities our business has bigger cash balance that might expand

our business in the future.