A SIMPLE BUSINESS CASE ON MARKET SEGMENTATION,

MANAGING AN ENTERPRISE AND UNDERSTANDING

AND PREPARING FINANCIAL STATEMENTS

In Partial Fulfillment of the Requirements in

FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

NICOLE KAYE CADIZ

JOANAH CHARIZE CABAHUG

Grade 12 - ABM 1

HAZEL MAE B. SULAIMAN, CPA

FABM 2 Adviser

AUGUST 2019
I. Summary of the Case Study

Tony wants to put an Internet Café in their Home town in Dumaguete, City and
He thinks that people in their society would be attract and visit his Internet Café.
Their City is well known for it is a University City and popular educational
destination for students in surrounding provinces in Visayas and Mindanao. He was
thinking why not to put a small coffe and snack house inside his Internet Café,
upscale ambiance in which it can attract many tourists and customers to come in his
shop. Also, two mini conference rooms, laptops that is rentable and a introduction to
internet classes. It is expected to grow total sales by 10%.

In order for a small business of Tony to be successful, it must solve a problem,

fulfil a need or offer something the market wants. He made a plan in order to make
his business idea a reality.

a. Market Segmentation
b. Possible amounts needed for starting the business
c. Financial Statements
II. The Marketer’s task

1.a. Market Segment 1.b. Product 2. Profile (use relevant

Name market segmentation
variables)

Students  Coffee Geographical

 Interest : Social  Snacks  Country
Media &  Internet access  Target City:
computer/online  Mini conference Dumaguete City
games rooms  Density
 Age: 10 -20 years  Laptops for rent Demographical
old  Upscale ambiance  Age
 Gender:  “Introduction to the  Gender
Male/Female Internet” Classes  Education
 Religion
 Race
Psychological
 Social class
 Lifestyle
 Personality
Behavioural
 Occasions
 Benefits
 User Rates
 Loyalty Status
 Readiness Stage
 Attitude towards
product
Professionals  Mini conference
 Interest: Private rooms
meetings  Coffee
 Age: 21-35  Snacks
 Gender:  Internet access
Male/Female  Upscale ambiance
Community  “Introduction to the
 People in the Internet” Classes
society who wants  Coffee
to have research or  Snacks
to drink coffee in the  Internet access
Internet cafe.
Tourists  Upscale ambiance
 Coffee
 Snacks
 Internet access
Senior Citizens  Coffee
 Snacks
 Internet access
 Upscale ambiance
3. Positioning

Corner of Hibbard and Silliman

Recommended Positioning for Tony’s Internet Café

o Product attributes and benefits

 Associating brand/product with certain characteristics or certain
beneficial value.

o Product Price
 Associating brand/product with a low cost but high quality.
o Product Use and Application
 Associating brand/product with a specific us.
o Competitors
 Making consumers think that the brand/product is better that other
competitors.

4. Strategies (Product, Price, Place and Promotion considering the target market/s)

a. Product/Service
- Tony Internet Café is a computer shop offers internet access while serving
coffees and snacks and other services.
b. Price
- The price for computer unit rental cost Php10.00 per hour, coffee and
snacks cost Php80.00 and the laptop rental cost Php50.00 per hour. Tony internet Café
has also conference rental rooms that cost Php400.00 per hour.
c. Place
- Tony Internet Café is located at the corner of Hibbard and Siliman Avenue
in the City of Dumaguete, Negros Oriental. It is open from 7:30 a.m. to 10:00 p.m. every
day.
d. Promotion
- Tony Internet Café uses flyers and advertisement in social media to
promote the services in computer and products such as snacks and coffee.
Per Year
Total Service Income P 1,801,152
No. Of months 12
No. Of working days per month 24

Food & Laptop Rental Meeting

Beverages Package

Price per unit Php99.00 Php47.00 Php1,600.00

Meeting Package per 2 hours
Laptop 2
Conference set up 1
Set meals 3
Service Income/day
Students 70% Php1,941.10 Php196.70 Php2,240.00
Transient Visitors 20% 554.60 56.20 640.00
Seniors 10% 277.3 28.1 320
Total Daily Service 100% 2773 281 3200
Income
III. The Manager’s Task

Function Decision Points Critical Success

Factors/Issues
Planning Planning is the management function
wherein managers identify and select Grow total sales by 10%
the company’s goals and determine
the corresponding courses of action To plan what is the best for
in order to achieve them. As the company and to
planners, the goal for managers is to achieve its goal.
improve the company’s overall To create successful
performance by formulating relationship with customers
strategies to be implemented. and to secure financing for
expansion and to ensure
quality service and products
that the company will
provide.
Organizing Organizing refers to structuring the
business organization in such a way Build loyal customers
that employees are grouped together
to perform jobs or tasks. The To create harmonious
organization ensures that the relationship of the
employees are able to perform employees in the workplace
efficiently and coordinate effectively and ensuring their
to achieve the company’s goals. effectiveness and efficiently
to perform well.

Influencing Also refers to leading, managers help Customers are aware of the
the company achieve its objectives benefits they get from the
by influencing their subordinates to provided services.
perform the tasks assigned to them.
Managers encourage to live the
company’s vision in their job
performance.

Controlling Controlling requires managers to

identify any deviation from the
strategies and methods used in
attaining the company’s objectives.
The manager them implements
corrective actions to maintain or
improve performance.
High quality product and
services.
To know and provide any
strategies to achieve the
goal of the company.
Annual Salaries Expense

Salaries Expense (Per year) Php504,000.00

No. Of months in a year 12
No. Of working days in a month 24
Staff Requirement 6
Salaries Expense per person per month Php7,000.00

IV. The Accountant’s Task

Account Titles Classification

Expense Accounts Amount
Salaries Expense 504,000.00
Utilities Expense 240,000.00
Rent Expense 120,000.00
Supplies Expense 21,462.00
Repairs and Maintenance Expense 14,000.00
Depreciation Expense 50,000.00
Miscellaneous Expense 12,000.00
Total Php961,462.00
Asset Accounts Amount
Cash ₱281,640.00
Accounts Receivable 250,000.00
Notes Receivable 80,000.00
Office Supplies 4,300.00
Prepaid Rent 40,000.00
Equipment 500,000.00
Total Php1,105,940.00
Liabilities Account Amount
Accounts Payable 12,250.00
Notes Payable 12,000.00
Total Php24,250.00
Owner’s Equity Accounts Amount
Service Income 1,801,152.00
Interest Income 2,000.00
Tony, Capital 250,000.00
Tony, Drawing 10,000.00
Total Php2,043,152.00
 Tony Internet Cafe

Income Statement

For the year ended December 31, 2019

Revenues

Service Income P 1,801,152.00

Interest Income 2,000.00

Total Revenues P 1,803,152.00

Expenses

Salaries Expense 504,000.00

Utilities Expense 240,000.00

Rent Expense 120,000.00

Supplies Expense 21,462.00

Repairs and Maintenance Expense 14,000.00

Depreciation Expense 50,000.00

Miscellaneous Expense 12,000.00

Total Expenses P (961,462)

Net Income P 841,690

Tony Internet Cafe

Statement of Owner’s Equity

For the year ended December 31, 2019

Tony, Capital, January 1 P 250,000

Add: Net Income 841,690

Sub-total P 1,091,690

Less: Tony, Drawing 10,000

Tony, Capital, December 31 P 1,081,690

 Tony Internet Cafe

Statement of Financial Position

As of December 31, 2019

ASSETS

Current Assets

Cash P 281,640

Trade and Other Receivables (Note 1) 330,000

Prepaid Expenses (Note 2) 44,300

Total Current Assets P 655,940

Non-Current Assets

Property, Plant and Equipment (Note 3) 450,000

Total Non-Current Asset 450,000

TOTAL ASSETS P 1,105,940

LIABILITIES AND OWNER’S EQUITY

Current Liabilities

Trade and Other Payables (Note 4) 24,250

Total Liabilities 24,250

Owner’s Equity

Tony, Capital 1,081,690

Total Equity 1,081,690

TOTAL LIABILITIES AND OWNER’S EQUITY P 1,105,940

 Computational Notes to the Financial Statements

Note 1: Trade and Other Receivables

Accounts Receivable P 250,000

Notes Receivable 80,000

Total P 330,000

Note 2: Prepaid Expenses

Office Supplies P 4,300

Notes Receivable 40,000

Total P 44,300

Note 3: Property, Plant and Equipment

Equipment P 500,000

Less: Accumulated Depreciation 50,000

Carrying Value P 450,000

Note 4: Trade and Other Payables

Accounts Payable P 12,250

Notes Payable 12,000

Total P 24,250

V. Conclusion

I will suggest that Tony should continue his business because he earned in his
business. He has only Php2500,000.00 as a starting capital and at the end of a year
his business has a net income amounting of Php841,690.00. Since he is still earning
in his business there is no reason for him to stop and close his business.