TABLE OF CONTENTS:
CHAPTER 1: SUMMARY OF THE PROJECT
A. Name of the firm
FAMILIA RAMAYANA COMPUTER SERVICES this was our company name, it was derived from the name of our group, which is FAMILIA RAMAYANA and combined with the word Computer Services which is what our business offered. Familia Ramayana came from our group in college; it started when our classmate Ms. Bernadeth Paredes used our pictures for every character on a Hindu great epic titled Ramayana and Mahabharata.
B. Location
Lower Bicutan- The business will be renting a space at Vulcanizing St. K-9 Ext. Gen. Santos Lower Bicutan, Taguig City. It is the best location for us because there was a three school located around and the headquarters of Philippine National Police. The fifty (50) meter radius requirements as provided in the existing zoning code andother applicable rules and regulations wherein computer shops and other similar establishments and places of amusements should be put up or constructed at least two hundred (200) meters away from the schools.
C. Brief Description of the Project FAMILIA RAMAYANA COMPUTER SERVICES is computer shop business that also offers other service like photocopy and typing job. Since this type of business required a lot of investment, it is build by way of partnership. The business partners are Ms. Jellen Narvasa, Ms. Joanna Joy Bautista, Ms. Arlene Sario, Mr. Arjie Luchavez, Mr. Alex Dexter Patron, Mr. John Chryson Badjao and Mr. Ruben Majid Jungaya.
D .Major Assumptions
1. Market Projections
The FAMILIA RAMAYANA COMPUTER SERVICES will be located at Vulcanizing St. K-9 Ext. Gen. Santos Lower Bicutan, Taguig City. The target consumers are students, teachers, office workers (the PNP, trainees), and residence especially those teenagers who are looking for a good way to spend their free time.
2. Market Share FAMILIA RAMAYANA COMPUTER SERVICES will get an advantage compare to its competitors because we have a good location which is along the way. We can get majority of the customer because other computer shop located there are inside the there while our shop are at the front and easily seen by the passing customers.
3. Market Prices
Price is the amount of money charged for a product or service. Since we are newly opened internet café, we decided to offer the same price as the other internet shop offered in renting and printing. Generally, we can give them new ways of service that other computer shop don’t offer and that can give us huge advantage and we can get more customers and possible attract their regular customer.
4. Investment Cost It is the costs required beyond the development phase to introduce into operational use a new capability; to procure initial, additional, or replacement equipment for operational forces; or to provide for major modifications of an existing capability. 5. Method of financing We are in a partnership form of organization, we divided the capital according to the capability of the partner, and apparently we will share the profit and losses equally depending on the contribution of the partner.
E. Summary of Findings
Marketing Feasibility Summary
The Marketing aspect is one of important terms of feasibility study. Because it gathers information that can be useful to put up any business that you wants to establish. We study here our prospect target market, geographical segmentation which is the location of our business and demographic segmentation which is the characteristic of our market. We also include here the market share of our competitor which we identify sales of their business that will totally help us to strengthen our business to become more better than them, and having a competitor can be used as an advantage to our business in many ways, and last the tactics or marketing strategy that we can used to have an advantage against our competitor.
Technical Feasibility
This is very important in our study because it includes the tools and equipment needed to operate the business. We also mentioned here the product and services description.
Financial Feasibility
Financial is the most important on a business. FAMILIA RAMAYANA COMPUTER SERVICES is feasible because it is funded by 7 business partners, enough to finance all the equipment needed to operate a computer shop.
II. GENERAL INFORMATION
A. Management of the project (objective, mission, vision)
Objective
1. To satisfy the needs of the customers by providing highly-quality service at a very reasonable price. 2. To promote the use of the Internet to students and as well as to non-student. 3. To satisfy the needs by offering a good service. 4. To be a part of society that helps give student a good quality of education by means of our service.
Our Vision
To become the most dominant and well known internet shop in the Philippines and be a tool in giving everyone a good quality of education not just in technology but in other aspect.
Our Mission
To provide the community with cheap and fast access to internet in an educational and clean environment that will be useful to everyone. CPC will share educational internet or non-internet experiences to people of all ages and support in giving a good quality education to all students and non-student customer.
B. Name of the business
Name of the shop:
FAMILIA RAMAYANA COMPUTER SERVICES
Logo:
C. Type of Business Organization
PARTNERSHIP
- is an organization where two or more person binds themselves to contribute money, property, or industry into a common fund with the intention of dividing profits among themselves.
Benefits of partnership type of business we are establishing: 1. Partnership is relatively easy to establish. However, times should be invested in developing the partnership agreement, in our case there’s no problem about it because we are mostly friends and we are devoted to make our business progress. 2. With more than one owner, the ability to raise funds- Debt vs. Equity maybe increased. 3. Enhance capital availability. Two or more people will be providing and searching for capital. In addition, funding sources will be more likely to entertain financing request because of the broader capital base. 4. The profit from the business flow directly to the business though the partners personal tax return. 5. Higher quality employees. Partnerships tend to attract better employees because of the possibility of becoming a principal in the firm. 6. Easy form. Procedures and expenses are minimized. 7. The business usually benefit from partners who have complementary skills. 8. Better decision- making capability. Two heads are better than one. 9. Managerial flexibility. Generally, important decisions can be quickly, although not as fast in a sole proprietorship. 10. Limited government interference. Like sole proprietorship are normally free of extensive governmental scrutiny.
Description of members
Name: Jellen Narvasa Age: 19
Address: #185 Blk 4 Prk. 14 South Daang Hari, Taguig City
Educational Attainment: Bachelor of Science in Marketing Management 2009 - Present
Name: Joanna Joy Baustista Age: 19
Address: Blk 68 Lot 1Bonifacio Avenue Upper Bicutan, Taguig City
Educational Attainment: Bachelor of Science in Marketing Management 2009 - Present
Name: Arjie Luchavez Age: 19
Address: 1523 J. Ramos St. Ibayo Tipas, Taguig City
Educational Attainment: Bachelor of Science in Marketing Management 2009 - Present
Name: John Chryson Badjao Age: 19
Address: Pnr. Site FTI Compound, Taguig City
Educational Attainment: Bachelor of Science in Marketing Management 2009 - Present
Name: Alex Dexter Patron Age: 23
Address: Camp Bagong Diwa Gawad Kalinga Building A Lower Bicutan, Taguig City
Educational Attainment: Bachelor of Science in Marketing Management 2007 - Present
Name: Age:
Address:
Educational Attainment:
Name: Ruben Majid Jungaya Age: 23
Address: Blk 59 Unit 28 GK Compound Phase 2 Pinagsama Village, Taguig City
Educational Attainment: Bachelor of Science in Marketing Management 2007 - Present
Partnership contribution
Ms. Jellen Narvasa P80, 000 or 20%
Mr. Dexter Patron P60, 000 or 15%
Ms. Joanna Joy Bautista P60, 000 or 15%
Mr. Arjie Luchavez P50, 000 or 12.5%
Ms. Arlene Sario P50, 000 or 12.5%
Mr. John Chryson Badjao P50, 000 or 12.5%
Mr. Ruben Majid Jungaya P50, 000 or 12.5% It shows in the table above the equal contribution of share of every partners, Ms. Jellen Narvasa contributed the biggest share of 20%, followed by Mr. Dexter Patron and Ms. Joanna Joy Bautista with both 15% share of capital, and Mr. Arjie Luchavez, Ms. Arlene Sario, Mr. John Chryson Badjao, and Mr. Ruben Majid Jungaya with 12.5% share of capital each. With this table the profit of the business will be distributed fairly based on the share of capital that everyone contributed.
ORGANIZATIONAL CHART
PERSONNEL PLAN
Position Function
Manager -Establish shop policies and procedure for strict implementation
-Execute final decisions on all matters pertaining to the operation and the management functions of the business .
Asst. Manager -he or she supports the manager in the day-to-day running of the Computer shop. -has the same authority as the manager and do the managers’ task if the manager is out. -promote the photocopy service of our business on the near school and universities.
Accountant -Check the book of accounts and financial statement on daily and monthly basis. -Handles license renewal and payment of annual tax generated by the business. -divide the profit of the business to the business partners equally depending on their percent of share capital.
Cashier -accept payment -record the income or the total payment of service rendered in daily basis. -Count money in cash drawers at the beginning of shifts to ensure that amounts are correct and that there is adequate change. - Issue receipts, refunds, credits, or change due to customers.
Shop Staff -maintains inventory of supplies in the shop. -assist customers in their needs. -maintain cleanliness and orderliness -logging the customers hours consumed -help consume utilities consumption
Com. Technician -in charge on computer and other equipment maintenance -provide information on technical aspect -manage the photocopy and printing section -in charge of the computer repair service
Delivery Man -handle the pick-up and delivery of photocopy service to the customer -run on the nearest store for the needed supplies. - Assistant to the computer technician.
COMPENSATION PLAN Since we are all capitalist industrial partners, we will all contribute on both money and labor to the business. Since we will all work as an employee of the business our compensation will be in the form of percent of share capital. We will divide our monthly income minus all the expenses needed in the business equally based on the percentage of our share capital. This will be an advantage since we all partners and at the same time employee it will make the job easier.
G.TRAINING PROGRAM Since we are all new to this type of business we will require ourselves to attend business seminar, customer relationship seminar and trainings regarding computer business. We need to equip ourselves with enough knowledge on how to run a computer shop business.
H. FRINGE BENEFIT According to Omnibus Rules Implementing the Labor Code, proponent must give benefits to their employee. We as a capitalist industrial partner will still pay our SSS contribution which will be the 10% of our monthly share of profit. We will also pay the monthly contribution of each partner to the PAG IBIG and PHILHEALTH.
I. FACILITIES FAMILIA RAMAYANA COMPUTER SERVICES will be renting a space at Vulcanizing St. K-9 Ext. Gen. Santos Lower Bicutan, Taguig City. The space measures 10 sq. meters. We will rent the said space at the amount of 5,000 a month based on the contract signed with the owner of the space. They renovated the place to fit the needs of our business.
J. STATUS AND TIME TABLE OF THE BUSINESS The period during which a goal or series of goals is to be achieved: The construction firm's timetable indicated that the renovation of the space that will be used by our business will be done in 2 months and another month for the installation of the equipment.
K. LEGAL ASPECT Legal Requirements Steps on how to get business permit in Taguig City. Based on the 2011 Doing Business in the Philippines study of the International Finance Corporation, here are the 16 steps to start your business in Taguig.
Step1. Verify and reserve the company name with the Securities and Exchange Commission (SEC)
The company can verify the availability of the company name online. Verification is free but reservation of the name, once approved by the SEC, costs PHP 40 for the first 30 days. The company name can be reserved for a maximum of 120 days for a fee of P120, which is renewable upon expiration of the period.
Step2. Deposit paid-up capital in the authorized agent bank (AAB) and obtain bank certificate of deposit
The Company is required by law to deposit paid-up capital amounting to at least 6.25% of the authorized capital of the partnership. This paid-up capital must not be less than P5, 000.
Some banks charge a fee for issuance of the certificate of deposit.
Step 3. Notarize articles of incorporation and treasurer's affidavit at the notary REGISTRATION/ RECORDING OF PARTNERSHIPs
Basic Requirements 1. Name Verification Slip; 2. Articles of Partnership; and 3. Joint affidavit of two partners undertaking to change partnership name in the even another person, entity or firm has acquired a prior right to the use of the same name or one similar to it (not required if Articles of Partnership has provision on this commitment).
Additional requirements 1. Endorsement/clearance from other government agencies, if applicable 2. For partnership with foreign partners
a) SEC Form No. F- 105
b) Bank certificate on the capital contribution of the partners
c) For foreign partners who want to register their investments with the BSP:
Proof of remittance Note: If it is a limited partnership, the word “Limited” or “Ltd” should be added to the partnership name. Articles of Partnership of limited partnerships should be under oath only (Jurat) and not acknowledged before a notary public.
FOR PARTNERSHIPS I. AMENDED ARTICLES OF PARTNERSHIP (to change partnership name) 1. Name Verification Slip; 2. Amended Articles of Partnership; 3. Affidavit of a partner undertaking to change partnership name; snf 4. Endorsement/clearance from other government agencies, if applicable II. AMENDED ARTICLES OF PARTNERSHIP (to change partners) 1. Amended Articles of Partnership; and 2. Deed of Assignment of partnership interest/letter of withdrawal of partner/ or affidavit of death of partner III. FOR OTHER AMENDMENTS 1. Amended Articles of Partnership
IV. DISSOLUTION OF PARTNERSHIP 1. Articles of Dissolution; and 2. BIR Tax Clearance
Step 4. Register the company with the SEC and receive pre-registered Taxpayer Identification Number (TIN) The Company can register online through SEC i-Register but must pay at the SEC. The following documents are required for SEC registration:
a. Company name verification slip;
b. Articles of incorporation (notarized) and by-laws;
c. Treasurer's affidavit (notarized);
d. Statement of assets and liabilities;
e. Bank certificate of deposit of the paid-in capital;
f. Authority to verify the bank account;
g. Registration data sheet with particulars on directors, officers, stockholders, and so forth;
h. Written undertaking to comply with SEC reporting requirements (notarized); and
i. Written undertaking to change corporate name (notarized).
The SEC issues pre-registered TINs only if the company’s application for registration has been approved. The company must still register with the Bureau of Internal Revenue (BIR) in order to identify applicable tax types, pay an annual registration fee, obtain and stamp sales invoices, receipts and the books of accounts.
Step 5. Obtain barangay clearance
This clearance is obtained from the barangay where the business is located and is required to obtain the business permit from the city or municipality. Barangay fees vary for each barangay since they have the discretion to impose their own fees and charges for as long as these fees are reasonable and within the limits set by the Local Government Code and city ordinances. Barangay fees may depend on: a. the location and the area (size in square meters) of the place of business; or b. the company’s paid-up capital and the area it occupies; or c. whether they issue clearance plates or certificates.
Step 6. After issuance of the SEC certificate of incorporation, pay the annual community tax and obtain the community tax certificate (CTC) from the City Treasurer's Office (CTO) In Taguig, the community tax certificate is not a requirement for obtaining the barangay clearance. The city has passed an ordinance setting a ceiling for barangay clearance fees for all barangays under its jurisdiction.
Step 7. Notarize the business permit application form
Business permit application form is downloadable from the city’s website.
Step 8. Obtain the business permit to operate from the Customer Service Counter of the Business Permits and Licensing Office (BPLO)
The company must file the following documents at the BPLO:
a. SEC registration;
b. Duly notarized application form;
c. Barangay clearance;
d. Corporate community tax (Cedula);
e. Contract of lease;
f. Insurance (comprehensive general liability);
g. Location sketch; and
h. Photocopy of Certificate of Occupancy (obtained from the owner of the building). Once the documents are filled, the officer at the Customer Service Counter forwards the forms to the following offices: (1) the BPLO for the assessment of fees and tax order of payment; and (2) the Health Department for calculation of sanitary inspection fee. The city collects initial business tax for the quarter covering the period of business registration. In the succeeding quarter(s), the tax is based on the gross sales for the preceding quarter. Inspection from the BPLO takes place after issuance of the business permit.
Step 9. Buy special books of account at bookstore Special books of accounts are required for registering with the BIR. The books of accounts are sold at bookstores nationwide. One set of journals consisting of four books (cash receipts account, disbursements account, ledger, general journal) costs about PHP 400. If the company has a computerized accounting system (CAS), it may opt to register its CAS under the procedures laid out in BIR Revenue Memorandum Order Nos. 21-2000 and 29-2002. The BIR Computerized System Evaluation Team is required to inspect and evaluate the company’s CAS within 30 days from receipt of the application form (BIR Form No. 1900) and complete documentary requirements.
Step 10. Apply for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR) The Company must register each type of internal revenue tax for which it is obligated by filing BIR Form No. 0605 and paying the annual registration fee of PHP 500. Upon registration, the BIR will issue to the company the certificate of registration—BIR Form No. 2303.
To obtain the TIN, the company has to file: a. Barangay clearance; b. Mayor's permit; and c. Copy of its SEC registration. For company registrations filed with the SEC Head Office in Metro Manila, the BIR confirms the pre-registered TIN issued by the SEC.
Step 11. Pay the registration fee and documentary stamp taxes (DST) at the AAB The Company must pay DST on the original issuance of shares of stock. The rate is PHP 1 on each PHP 200 or a fractional part thereof, of the par value of such shares of stock. This payment with the BIR should be made on the 5th of the month following registration with the SEC.
The COR will be released only after all the DSTs are paid. The company must also pay DST on its lease contract at the rate of PHP 3 for the first PHP 2,000 or fractional part thereof, and an additional PHP 1 for every PHP 1,000 or fractional part thereof in excess of the first PHP 2,000 for each year of the lease as stated in the contract.
Step 12. Obtain the authority to print receipts and invoices from the BIR The authority to print receipts and invoices must be secured before the sales receipts and invoices may be printed. The company can ask any authorized printing company to print its official forms, or it can print its own forms (i.e., it uses its computers to print loose-leaf invoice forms) after obtaining a permit from BIR for this purpose. To obtain the authority to print receipts and invoices from the BIR, the company must submit the following documents to the Revenue District Office (RDO): a. Duly completed application for authority to print receipts and invoices (BIR Form No. 1906); b. Job order; c. Final and clear sample of receipts and invoices (machine-printed); d. Application for registration (BIR Form No. 1903); and
e. Proof of payment of annual registration fee (BIR Form No. 0605).
Step 13. Print receipts and invoices at the print shops The cost is based on the following specifications of the official receipt: 1/2 bond paper (8 ½ x 5 ½ cm) in duplicate, black print, carbonless for 10 booklets.
Step 14. Have books of accounts and Printer’s Certificate of Delivery (PCD) stamped by the BIR After the printing of receipts and invoices, the printer issues a Printer’s Certificate of Delivery of Receipts and Invoices (PCD) to the company, which must submit this to the appropriate BIR RDO (i.e., the RDO which has jurisdiction over the company’s principal place of business) for registration and stamping within thirty (30) days from issuance. The company must also submit the following documents:
a. All required books of accounts;
b. VAT registration certificate;
c. SEC registration;
d. BIR Form W-5;
e. Certified photocopy of the ATP; and
f. Notarized taxpayer-user’s sworn statement enumerating the responsibilities and commitments of the taxpayer-user. The company must also submit a copy of the PCD to the BIR RDO having jurisdiction over the printer’s principal place of business.
Step 15. Register with the Social Security System (SSS) To register with the SSS, the company must submit the following documents: a. Employer registration form (Form R-1); b. Employment report (Form R-1A); c. List of employees, specifying their birth dates, positions, monthly salary and date of employment; and d. Articles of incorporation, by-laws and SEC registration. Upon submission of the required documents, the SSS employer and employee numbers will be released. The employees may attend an SSS training seminar after registration. SSS prefers that all members go through such training so that each member is aware of their rights and obligations.
Step 16. Register with the Philippine Health Insurance Company (PhilHealth) To register with PhilHealth, the company must submit the following documents:
a. Employer data record (Form ER1);
b. Report of employee-members (Form ER2);
c. SEC registration;
d. BIR registration; and
e. Copy of business permit. Upon submission of the required documents, the company shall get the receiving copy of all the forms as proof of membership until PhilHealth releases the employer and employee numbers within three months.
L. Articles of partnership
ARTICLES OF PARTNERSHIP OF
FAMILIA RAMAYANA COMPUTER SERVICES KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned, all of legal age and residents of the Republic of the Philippines have agreed to amend a limited partnership under the terms and conditions herein set forth and subject to the provisions of existing laws of the Republic of the Philippines.
AND WE HEREBY CERTIFY:
ARTICLE I.
That the name of the partnership shall be:
FAMILIA RAMAYANA COMPUTER SERVICES
ARTICLE II.
That the principal office of the Partnership shall be located at Taguig City, Philippines.
ARTICLE III.
That the names, citizenship, residence and designation of the partners of said partnership are as follows:
Name Citizenship Residence Designation
Ms. Jellen Narvasa Filipino Taguig City Capitalist Industrial Partner
Ms. Joanna Joy Bautista Filipino Taguig City Capitalist Industrial Partner
Ms. Arlene Sario Filipino Taguig City Capitalist Industrial Partner
Mr. Arjie Luchavez Filipino Taguig City Capitalist Industrial Partner
Mr. Alex Dexter Patron Filipino Taguig City Capitalist Industrial Partner
Mr. John Chryson Badjao Filipino Taguig City Capitalist Industrial Partner
Mr. Ruben Majid Jungaya Filipino Taguig City Capitalist Industrial Partner
ARTICLE IV.
That the term for which said partnership is to exist is 30 years from the original recording of said partnership by the Securities and Exchange Commission.
ARTICLE V.
That the purpose for which said partnership is formed are as follows:
1. To conduct business related to Computer Shop and other Service related to Computer;
2. To conduct computer rental and Photocopy services; and
3. To engage in business related to computer repair services
ARTICLE VI.
That the capital of the partnership shall be four hundred thousand, Philippine Currency contributed in cash by the partners as follows:
Name Amount Contributed
Ms. Jellen Narvasa P80, 000
Mr. Dexter Patron P60, 000
Ms. Joanna Joy Bautista P60, 000
Mr. Arjie Luchavez P50, 000
Ms. Arlene Sario P50, 000
Mr. John Chryson Badjao P50, 000
Mr. Ruben Majid Jungaya P50, 000
That no transfer will reduce the ownership of Filipinos citizens to less than the required percentage of capital shall be recorded in the paper books of the partnership.
ARTICLE VII.
That the profits and losses shall be divided pro-rate among the partners.
ARTICLE VIII.
That should there be any additional contribution made by a limited partner, such must be agreed upon by all the partners in writing and duly recorded at least two (2) days after signing of same agreement. Such contribution shall amend Article VI of the Articles of Partnership and in no case shall such amendment be done less than one (1) year after the original recording of said partnership by the Securities and Exchange Commission.
ARTICLE IX.
That the contribution of each limited partner may be returned to him/ her three (3) years after the original recording of said partnership by the Securities and Exchange Commission.
ARTICLE X.
That the limited partner may be given the right to substitute an assignee as contributor in his place, provided that he has duly notified his partners in writing, stating the reasons therefor, five (5) days before affectivity of said substitution. Provided further that such limited partner has already settled his obligations to the partnership prior to the notification of substitution
ARTICLE XI.
That a partner may admit an additional limited partner, provided that the other partners have been duly notified in writing five (5) days before affectivity of admission and duly concurred by all the partners in writing.
ARTICLE XII.
That the remaining general partner or partners shall have the right to continue the business in cases of death, retirement, civil interdiction, insanity or insolvency of a general partner.
ARTICLE XIII.
That the firm shall be under the management of Ms. JellenNarvasa, as General Manager and as such she shall be in charge of the management of the affairs of the partnership.
ARTICLE XIV.
That the partners willingly undertake to change the name of the partnership immediately upon receipt of notice/ directive from the Securities and Exchange Commission that another partnership, corporation, or person has been declare misleading, deceptive, confusingly similar to a registered name or contrary to public morals, good customs or public policy.
IN WITNESS WHEREOF
We have hereunto set our hands this 8thday of August 2012 at Cagayan de Oro City, Philippines’.
Name: Ms. Jellen Narvasa Name: Ms. Joanna Joy Bautista
TIN: TIN: Name: Ms. Arlene Sario Name: Mr. Arjie Luchavez
TIN: TIN: Name: Mr. Alex Dexter Patron Name: Mr. John Chryson Badjao
TIN: TIN: Name: Mr. Ruben Majid Jungaya TIN:
ACKNOWLEDGEMENT
Republic of the Philippines }
City of Taguig } S. S.
BEFORE ME,a Notary Public, for and in Cagayan de Oro City, Philippines, this 8thday of Ausgust, 2012, personally came and personally appeared the following persons with their Community Tax Certificates as follows:
Name CTC # Date / Place Issued
Ms. Jellen Narvasa October 15, 2012 Taguig City
Mr. Dexter Patron October 15, 2012 Taguig City
Ms. Joanna Joy Bautista October 15, 2012 Taguig City
Mr. Arjie Luchavez October 15, 2012 Taguig City
Ms. Arlene Sario October 15, 2012 Taguig City
Mr. John Chryson Badjao October 15, 2012 Taguig City
Mr. Ruben Majid Jungaya October 15, 2012 Taguig City
Known to me to be the same persons who executed the FOREGOING ARTICLES OF PARTNERSHIP, and they acknowledged to me that the same is their voluntary act and deed.
WITNESS MY HAND AND SEAL on the date first above written.
Name of legal Counsel
Notary Public Valid Until December 31, 2012
PTR. No.
IBP No.
Roll of Attorney No.
TIN
Taguig City
III. Marketing Aspects In marketing aspect, promoting business will use different strategies and techniques to attract probable customers.
COMPETITIVE STRATEGY
Competitor is one of the uncontrollable factors in a business. The price of the offered services is base cost selling prices and according to price also of our competitors. The business will ensure that we will give a better quality of services than our competitor. We want to be ensured of this business profitability within the above industry average. For sustainable competitive advantage, there must be the fundamental basis of above average profitability in the long run. We’re leading now the generic strategies for achieving above average performance in an industry. The first one is the cost leadership, which is our business sets out to become the low cost producer in its industry. That a low cost producer must find and exploit all sources of cost advantage. Then second is differentiation, that is a strategy of seek to be unique in its industry along some dimensions that are widely valued by customers. And lastly we’re lead to the generic strategy of focus of a competitive scope within an industry. The target segment must either have customers with unusual needs or the production and delivery system that best serves the target segment must differ from that of other industry.
Market Strategy To penetrate the target market, different marketing strategies and promotions will be considered. Leaflets will be distributed and handed out to various business establishments, offices, schools, tricycle stations, friends, and relatives. Games and services offered will be displayed on the store window. We will offer promo’s to attract consumer like cheaper rate for computer rental, and membership card. We will put a tarpaulin on the place itself where our shop is located, we will promote the opening of the computer shop a month before the actual start of operation to let the people know that there will be a new Computer Shop in that location. Lastly, we will keep developing our skills by attending seminars to improve our knowledge and to be updated in this business.
A. Marketing Study As the popularity of the Internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. “FAMILIA RAMAYANA COMPUTER SERVICES” provides communities with the ability to access the Internet and share Internet experiences in a comfortable environment. People of all ages and backgrounds will come to enjoy the unique, up to date, and innovative environment that “FAMILIA RAMAYANA COMPUTER SERVICES” provides.
B. Target Market FAMILIA RAMAYANA COMPUTER SERVICES has four strategies to get our main target markets. The first strategy focuses on attracting novice Internet users, or kids on elementary level also those teenagers and adults who knows little about computer and internet by providing them a novice friendly environment, FAMILIA RAMAYANA COMPUTER SERVICES hopes to educate and train a loyal customer not only for the sake of our business but also to be able to help them.
The second, and most important, strategy focuses on pulling in power Internet users or those people whom using internet and computer becomes part of their daily activities. Power Internet users are extremely familiar with the Internet and its offerings. This group of customers serves an important function at FAMILIA RAMAYANA COMPUTER SERVICES. Power users have knowledge and web-browsing experience that novice Internet users find attractive and exciting.
The third strategy focuses on building a social environment for FAMILIA RAMAYANA COMPUTER SERVICES customers. A social environment, that provides entertainment, will serve to attract customers that wouldn’t normally think about using the Internet. Once on location at FAMILIA RAMAYANA COMPUTER SERVICES, these customers that came for the more standard entertainment offerings will realize the potential entertainment value the Internet can provide.
And last is to get the trust of school and universities located near our shop, getting the trust of teachers and professor will help us attract their students to be part of our regular customers, also since we offer a service that will greatly benefit them it will be critical for us to gain their satisfaction.
C. Market Demographics Understanding market demand and supply units and forces calls for a segmentation of fundamental influences. To this end, it is imperative for every product or service to be launched in complete synchronization with the evaluation of the demographics that rule the business arena. The word demography means related to the human population. Market demographics refer to all the data that is collected for the purpose of providing information to organizations such as government offices and marketing departments. Details of the population in relation to their age, sex, employment status are usually included in marketing demographics. This data is usually used to make policy decisions and for research of the market conditions. The main objective of market demographics is to understand the different segments of the population and also to get a clear idea of the needs and wants of the different segments in the society. On the basis of this information organizations can build a marketing strategy. The major types of demography that is included in marketing is the age of the targeted group, the gender ratio, the level of the income that exists and the race and the ethnic groups that exist in the targeted group.
D. Market Needs As the popularity of internet continues to grow at an exponential rate, easy and affordable access is quickly becoming a necessity of life. Public wants access to the methods of communication and volumes of information now available on the internet, and access at a cost they can afford and in such a way that they are not socially, economically, and politically isolated.
E. SWOT analysis The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses FAMILIA RAMAYANA COMPUTER SERVICES must address. It also allows us to examine the opportunities presented to us as well as potential threats. FAMILIA RAMAYANA COMPUTER SERVICES has a useful inventory of strengths that will help it succeed. These strengths include: a knowledgeable and friendly staff, modern computer hardware, and a clear vision of the market need. Strengths are valuable, but it is also important to realize the weaknesses FAMILIA RAMAYANA COMPUTER SERVICES must address. These weaknesses include: a dependence on quickly changing technology and the cost factor associated with keeping modern computer hardware. These strengths will help us capitalize on rising opportunities. These opportunities include, but are not limited to, a growing population of daily Internet users, and the growing social bonds fostered by the new Internet communities. Threats that FAMILIA RAMAYANA COMPUTER SERVICES should be aware of include, the rapidly falling cost of Internet access, and rising local competitors.
E.1. STRENGTH 1. Knowledgeable and friendly staff – We at Familia Ramayana Computer Services served with passion for teaching and sharing our knowledge on internet and computer. We as the staff and the people behind this business will assure that we will become a factor for this business to succeed 2. Modern Equipment –we will let them experience access to modern computer equipment. Our customers will experience beautiful and convenient unit’s display, fast internet connection, good quality computer for them to use and other high quality computer equipment. 3. Up-scale ambience – we will provide comfortable place for the customer. We will provide enough space and privacy for each and every customer and not like the elbow to elbow style of other computer shop. We will make sure that the area is always clean and nice lightning to complement the mood of the customers. 4. Clear vision of the market needs – we know what it takes to build an upscale computer shop. We will know our customers and make sure to know the latest about computers and the technology; we will provide good quality service to that will make as one with our customers.
E.2. WEAKNESSES 1. Dependent on quickly changing technology – technology change fast this days, what to be the latest model today are more likely to be old next week. We know that this kind of business will rely on technology and because of it we must quickly adapt on the changes that rapidly happens. We need to keep up with the phase of quickly changing nature of technology to be able to give our customer the experience they needed in this modern days.
2. Cost factor associated with keeping state-of-the-art hardware and software - keeping up with the technology needed to run the computer now is an expensive undertaking. We need to balance the technology needs in every aspect of our business. One aspect of the business cannot be sacrificed for the other.
E.3. OPPORTUNITIES 1. Growing population of daily internet user – as the importance of internet and other computer needs turns to be an important aspect of life these days it increase the population of internet users, as it increase the services of our shop will become handy. We provide services that are needed by almost everyone. Internet is used in almost every aspect of our life today. 2. Social bonds created by the new internet communities – the internet is bringing people from across the world together unlike any communication medium. Familia Ramayana Computer Services will capitalize on this trend by providing a place to communicate with those people who are in far places. By providing the customer places where they can chat or even talk online via video call.
E.4. THREATS 1. Rapidly falling cost of internet access – the cost of access to the Internet for home users is dropping rapidly. Internet access may become so cheap and affordable that nobody will be willing to pay for access to it. Familia Ramayana Computer Services is aware of this threat and will closely monitor pricing. 2. Rising Local Competitors - Currently, Familia Ramayana Computer Services is enjoying a first-mover advantage in the local computer shop market. However, additional competitors are on the horizon, and I need to be prepared for their entry into the market. Many of my programs will be designed to build customer loyalty, and it is our hope that our quality service and up-scale ambiance won’t be easily duplicated.
F. COMPETITORS Familia Ramayana Computer Services has a total of 2 competitors close at our location. This competitor can be used to our advantage and also be a disadvantage. By having a competitor close by can be used as an advantage because they already have a regular customer which will for sure explore our newly established business and they can turn to be our first regular customer depending on our quality of service to be offered. It also enables you to identify gaps in the market for products, services or initiatives, give you ideas for new technology and methodology that could be applied within your own organization. It can be also a disadvantage because it involves a commitment of resource which will have an inherent cost to the business, Flawed analysis of competitors might result in making poor business decisions in order to compete and too much focus on the activities of competitors might lead a business into becoming reactive instead of proactive, resulting in a lack of innovation and a lack of unique identity in the market.
G.MARKET SHARE
Technical Aspect
In technical aspect it identifies whether the services rendered could be the highest possible quality level with minimum cost. In this aspect we will discuss the equipment and other computer application we use in the business. We purchase equipment as packages in order to lessen our expense. Hardware and Software is our much focus aspects. We did researching on how much the Hardware and software will cost us, through net surfing. The internet connection we used is Package plan of Smart Broadband amounting P999.00.
In Hardware our target number of desktop computer is 11, The Internet connection is a package of Smart Broadband connected to a wireless gap router with a speed of 2mbps, and 2 pcs 3 in 1Printer, Scanner & Photocopier. In Software, we will install original Operating System of MS Office Professional 2007 likes MSWord, Excel, Power point, Access, Desktop Publishing and installing the popular games such as World of warcraft also known as DOTA, Counterstrike, Battle Realms, NBA2k12, Dance Audition and we will be installing Norton 360 version 3.0 premiums for our anti-virus and anti-spyware. We offer other service to customers likes printing in black and white, photocopying, Typing Job, and Scanning.
List of equipment Brand name Price
20 Computer Set LG P12, 500 each
4 Printers and Copier Machine LG P7, 500
7 wall fan LG P1, 500
20 computer table P500.00
20 Chair P250.00
2 sofa chair P2, 000
2 office table P1, 000 Computer application software: amount Windows 2010 (Operating System) P1, 500 Microsoft Office P1, 000 Avira Anti-Virus P2, 000 World of Warcraft (DOTA) P750.00 a. Product/Services
As a computer shop or also known as internet café we offer services the same as other same businesses give, so we decided to offer a new service that other computer shop don’t offer to their customer, and based on our research and survey we will be the only one to offer this kind of service in these location. These will be done by coordinating to the schools and universities located near our business location, we would offer the professors and teachers of this service. These would be a photocopy service, but unlike the other photocopy services we offer a free pick-up and delivery for a minimum number of pages to be photocopied. We will leave a contact number to our customer so they can contact us if ever they want to avail this service. We will offer same amount of payment as the other photocopy service offered outside their campuses. The advantage of this is they don’t have to go outside just to photocopy there paper or the test paper they used for examination of their students, it would be less on things they have to do and can used that time doing other important things.
Here are the lists of services we offer:
Services price
Computer rent P10.00/hour
Print (short or long) Black and white P1.00/page Colored P2.00-5.00/page
Typing job P15.00/page
Photocopy (short or long) P0.50/page (Free pick-up and delivery for a minimum of 100 pages)
Computer Repair (Price depend on the damage and what are needed to be repaired)
You'll appreciate surfing and gaming at FAMILIA RAMAYANA COMPUTER SERVICES. It has super-fast Internet connection; you'll be visiting all your favorite sites in record time. Multi-player gaming isquicker and more exciting when you and your friends are able to do battle with no lag and plenty of bonding for everyone. We will be sure that our friendly staff is ready to help with all your computer needs.
Business Guidelines * All malicious sites are blocked. * Inserting flash drive or other storage devices are prohibited without the consent of the shop staff. * Eating and Drinking are not allowed inside the computer shop. * Customers should be in proper attire before entering the shop and people under the influence of alcohol are also not allowed. ( no shirtless male are allowed to enter)
b. Shop location
FAMILIA RAMAYANA COMPUTER SERVICES will be located at Vulcanizing St. K-9 Ext. Gen. Santos Lower Bicutan, Taguig City. c. Shop size
The size of the shop will be 10 square meter. With this size of shop we will be able to accommodate large number of customer while still giving them a comfortable place. d. Business Schedule
It would open at exactly 6am and closed at exactly 12 midnight. We decided to open it as early as 6am to accommodate the student who has morning class. Based on our survey and research some students look for a computer shop as early as possible to print or to do some rush research in the morning before going to school, these are the things that often happen in the life of the students. So by being open as early as 6am we can accommodate this student and we can help them at the same time by giving them service that they sorely needed at times they are desperate to find. e. Uniform
We won’t require our employee to wear a uniform but we will ask them to wear something that will make them respectable to the customer, we will also give them an id or a name tag so the customer can call them by their name, by doing that it will help create a good relationship with the customer. f. Utilities
The utilities needed to run the business are electricity that are used to run the computer and other equipment and water to use in the comfort room. g. Waste disposal
The proper disposal of the garbage is very important. Since our business is a computer café we usually used bond paper, so it is not hard for us to think how it will be disposed. To maintain the cleanliness inside the café there are trash basket at one corner.
Cleaning Materials
Broom P100.00 Dust Pan Plastic P50.00
Trash Basket P150.00 Feather Dust P50.0
Mop P250.00 Air Freshener P100.00
h. Shop floor layout
The picture shows the floor plan of our business. The size of it is 10 square meter. As you can see above we divided the place properly to put all the necessary facility for the convenient of the customer. We provided a space for the comfort room for the customers need and provided with all the things needed in it. We also divide the section into 2 parts. The bigger part will be for the gaming section where all of the games are installed and the other part are for the internet section or the place where can customer access the internet more conveniently. We decided to separate the gaming because we know that some of the gamer produce a loud noise that sometime cause the other customer to be irritated and cannot focus on what they’re doing, so for them to be comfortable we decided to give them the place where it will be quiet and at the same time a place for the gamer where they can express there excitement without worrying about the other customer who are not into gaming.
J. Equipment Requirement
20 Computer Set 4 Printers and Copier Machine
7 wall fan 20 computer table
20 Chairs 2 sofa chair
2 office table Windows 2010 (Operating System)
Microsoft Office Avira Anti-Virus
World of Warcraft (DOTA) 