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Sample Feasibility Study
Sample Feasibility Study
INTRODUCTION
In the year 1960, RAND Corporation introduced the first computer network to the U.S
military. They used command-and-control network where there was only one authority who can
convey message which can b3e linked from city to city, state to state, and base to base. However,
in spite of its ability to transmit the necessary messages to all concerned, its limitation with
regards to its capacity to transmit was not to be denied
Four years later Paul Baran form the same company proposed in public the first public
networks that have no central authority. It was designed to operate on a get-go transcend were all
the nodes in the network would be equal in status to all the other nodes, each node with its own
authority to originate, pass, and receive messages.
The national physical laboratory in Great Britain set up the first test network of this
principal in 1968. Shortly afterward, the Pentagons Advanced Research projects Agency funded a
larger and more ambitious network nodes were built in high-speed super computers.
In fall 1969 the first node was installed in UCLA by ARPANET which can transfer data on a
high-speed transmission lines. By 1970 ARPARET grew and its structure expands easily because it
can accommodate many different kinds of machine.
The original standard for communication was known as the Network Control Protocol
(NCP), but as time passed by and the technique advanced, the NCP was superseded by a much
higher-level, and more sophisticated standard known as the Transmission Control Protocol
(TCP/IP). It converts messages into streams of packets form the source, then resembles them
back into messages to the destination. Internet Protocol handles the addressing aspect while
seeing to it that the packets are well routed across multiple nodes and even across multiple
networks.
As the 70s and 80s advanced, many social groups found themselves in possession of
powerful computers. The use of network became a public domain. Its basic technology was
decentralized because networks fell into the digital which came to be known as the Internet.
The powerful and sophisticated access that it provides to specialized date and
communication has speed up the pace of scientific research enormously. It made a great impact
on society than in railways, electronic power and telephones. It is probably the most important
scientific instrument of the late twentieth century.
In the Philippines, several individual and institution have pioneered in providing Internet
services to people who have natural inclination to computers by the use of low-speed mode of
transmission in the late 80s. It is after when the leading telecommunication and broadcasting
companies step into the Internet Service Provides (ISP) business that Filipinos finally got the hand
of getting wired in the world through the use of Internet.
The technology of ISP succeeded in keeping and pushing the boundaries that leads Filipinos
into the next millennium which resulted to a dramatic change in the face of technology
communication in thePhilippines. Through the use of the World Wide Web, Students, Businessman
and other of the same sort found an indispensable tool for research and laxation. Using the variety
of websites mailing list, news groups, and chat room, the wired community was able to find new
ways to do old things.
To date, it provides an excellent platform for experimenting with almost all types of online multimedia services that range form video phone applications to virtual reality environments
where participants will interact with each other.
The researchers of this study decided to put up an Internet caf to provide information
and service to the pu8blic by adopting it in the continuing growth of our economy that can further
boost the progress of our nation.
The Problem
As we all know, our country is at the rising stage. This is mainly because of the numerous
business establishments which are being put up, hence if we can just maintain this scenario in the
investment aspect; it is very possible for us to achieve the concept of the Philippine 2000.
For the researchers, this paper can enlighten their thinking with regards to the reality of
life especially as we walk towards the path of the business world. Also aside form being
informative this research will encourage the readers to stay abreast to the various developments
in the internet which is after all is considered as the worlds largest library of information on-line.
Assumptions
Before formally conducting the research, the following assumptions were established:
The initial capital is P 500,000.00.
The location of the business is in TarlacCity.
The adoption of Partnership as the most suitable form of business organization.
The projection of the established future earnings in the next five years.
SCOPE AND LIMITATIONS
This study aims to establish an Internet Caf business. This study will be based in
management, marketing, technically, socio-economic, and financial aspect of business.
Managers and owners will be covered as part of the respondents.
The scope of the study shall cover another type of respondent who will be the future
target market. They are students of difference schools who are near the proposed location the
schools
that
will
be
covered
Colege
Spirit,Ecumenical Christian College and other internet user within the vicinity.
Methods and Procedures
of
the
Holy
The research methodology used in conducting this thesis-feasibility study is the descriptive
research method. This research method gives a comprehensive in-depth analysis of the service
being studied. It serves as a fact-finding tool that permits adequate interpretation of the results
of the survey made by the researchers. It is a kind of research method that provides information
about the present situation particularly on the current trend of the service.
Sources of Data
The primary sources of date used in this study are the questionnaires and interviews form
the customers and owners of Internet Caf and Computer Rental Shops. These questions and
interviews are essential in obtaining valid and accurate date which is often fraud not found in
books, magazines, periodicals, and others.
The secondary sources of date used in this study include books specifically computer
books, dictionaries, other feasibility studies relate to the topic and statistical date coming from
various government agencies / departments.
Subjects of the Study
The researchers selected the students, employees and owners of different Internet Caf
and Computer Rentals as respondents of this study. This is because the proponents of this thesisfeasibility believes that those chosen respondents can give the most appropriate informations
answers about the proposed business in relation to the present condition of the business industry.
Sampling Technique Used
The sampling technique used by the researchers is the Stratified Random Sampling
Technique. The said technique refers to the process of selecting random sample sizes form
different strata of population used in the study. This is often times used when the population of
the inquiry has class stratification or are grouped either horizontally or vertically.
The population of the selected schools were broken down into sub-population in order to
get an accurate representative sample size.
Using the Storens formula and a margin of error of 5% the following were computed.
Storens Formula
n =N
______________
2
1+nE
n = 1,170
______________
2
1 + 1,170 (.05)
n = 1,170
______________
1 + (1,170) (.0025)
n = 1,170
______________
3,925
n = 298.09 or 298
Total Sample Size = 300
Breakdown (according to schools)
1. Tarlac State University -120 (40%)
2. College of the Holy Spirit -90 (30%)
breaks
new
ground
in
mobile
computing
technology,
compilers,
and
MARKETING ASPECT
For the business to succeed, it should be given time and effort. The proponent of a computer
business such as Internet caf must possess th needed creativity so as to be able to provide quality
service to its customers. The satisfaction of the needs and wants of its customers or target market
must be the main objective of the proposed business.
In every project feasibility marketing aspect is considered the most important because it requires
discreet analysis of he business total demand and supply. This chapter will discuss the demand
analysis, supply analysis, demand and supply gap analysis, marketing program and projected sales.
DEMAND ANALYSIS
A total of 300 respondents took part on the survey conducted by the proponents of this business.
After gathering and recording all the data, it shows that 81.67% of the respondents belong to the
age bracket of 15-20 years old. The result also shows that 65% of the respondents are male while
35% are female. About 95% are single while the other 5% are married.
With regards to there monthly income, most f the respondents belongs to the income/allowance
bracket of P1,000-3,000. This also indicates that most of them are students who comprise about
90% of the sample size. About 51.67% of the respondents are willing to spend up 10% of their
income/allowance for computer rentals for hands-on use, wile 35.67% are willing to spend the
same portion of their income/allowance for internet use. A total of 144 respondents (48.0%) are
renting a computer on a once-a-week basis for hand-on use while 32.67 % are renting a computer
on a once-a-week basis for internet use.
Among the services offered the use of the computer for hands-on and internet purpose have the
highest percentage based on the survey results. Also the respondents consider the ambiance and
the type of the computer hardware/software as the main factors in renting a computer.
About 39.67% of the respondents use the computer on hands-on basis for more than two hours
while 42.33% are using computers for internet use for at least two hours.
With regards to their monthly income, most of the respondents belongs to the income/allowance
bracket of 1,000-3,000 this also shows that most of our respondents were students who composes
of about 90% of the total respondents. From the average income of the respondents 51.67% spends
from 1-10% in renting a computer fro hands-on wile 26.67% of the total respondents spends from
1-10% in renting a computer unit for internet use. About 48% of the respondents are renting a
computer once a week for hands-on use.
Among the services offered, hand-on Internet use has the highest percent preferred by he
respondents. Also the respondents consider the ambiance and the computer hardware/software as
their main factors in renting.
SUPPLY ANALYSIS
Based on the data gathered from the survey answered by owners of the computer Rentals and
Internet Caf, it shows that 46.15% of the respondents initial capital belongs to the P300,000400,000 bracket. About 69.23% of hem stated that th total demand increase from 1-10% annually.
Most of the seller respondents give priority in providing quality service, affordable process
and good advertising/production in order to stay competitive in the service market.
MARKET PROGRAM
The marketing program is basically a program consists of the following: Product, price, place and
promotion or sometimes called MARKETING MIX.
A. OBJECTIVES
The Objectives of the business are the following:
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 determine the size of the potential target market in order to effectively meet
the demand and supply gap of the market.
B. PRODUCT STRATEGY
The proposed business offers renting of computer for hands-on where you can do
your office works ad school projects such as book report, thesis, assignments, and
feasibility study. Internet use is also made available, so that the customers can do some
research works, know different topics and articles, and even chat with other friends.
Computer games and audio video are also offered.
C. PRICE STRATEGY
Pricing is considered to be the most critical factor which most often time affect
the marketability of the service offered by the business. Pricing will be based o cost plus
reasonable mark up. The terms of payments will be on cash basis only.
Rental fees are as follows:
Hands-on/Games/Internet use P 25.00/hr.
Printing Jobs
Colored P 20/page
Laser/Deskjet text only P 5.00
Photo P 75.00 size is 8.5x11
D. PLACE OF CHANNEL OF DISTRIBUTIN STRATEGY
The place of distribution will be at Romulo Boulevard,Tarlac City near Magic Star.
The manner of distribution will be from manufacturer to consumers.
E. PROMOTION STRATEGY
In promoting the business, the researcher intends to do the following:
Post billboards and streamers along the streets to announce the opening of
the store weeks before the data of the opening.
The posting of signboards that state the services offered.
Discount cards will be given to the first 50 customers.
Fliers will be given outside the nearby school to attract possible customers.
Free 2 rental hours for the first 100 customers who will first accumulate 50
hours or rental.
DEMAND AND SUPLY QUANTUM
A. DEMAND
The population (No. of students =1,287)
a. Talac State University 579
b. Ecumenical Christian College 321
c. College of the Holy Spirit 387
Less: 10% ) portion of population on not included) 129
Net potential Market 1,158
Multiply: Ave. Annual Income/Allowance 2,999.50
Total Ave. Annual Income/Allowance of net
169,351.05
FORECASTING TECHNIQUE
Historical Demand for Computer Services Average Demand / yr.(5%)
2011 173,671.05
2010 164,987.49
2009 156,738.11
2008 148901.20
2007 141,456.14
Computations using Arithmetic Straight line method
Demand in 2007 173,671.05
Demand in 2011 141,456.14
Total Demand Gap (from 2011-2007) 32,214.91
Multiply: Rate of Increase in Demand 10%
Total Increase in Demand 3,221.491
Demand Projections
2007: 141,456.14 +3,221.491 =144,677.631
2008: 144,677.631 +3,221.491 =147,899.122
2009: 147,899.122 +3,221.491 =151,120.613
Articles of the partnership was prepared and signed by all partners which reflects the following:
The partnership name
The business address
The partnerships goal/objectives
The name and address of the partners
Duration on when partnership will exists
The amount of cash contributed by each partner
Each partner will secure a share of profits based on the contribution
plus all other compensation by way of income
After agreeing with the terms and condition of the purpose, each of them needs to affix their
signature in five(5) copies of the articles of partnership with the
presence of the witness and the notary public.
Operating Phase
The procedure to be done in registering with some agencies who have regulatory power over the
business:
For the registration of the business in the Security and exchange commission (SEC) certain
procedures are to followed:
Fill out all the file copies of information sheet receives from the
office
Verify the partnership names in the record section
He/she shall maximize profit by the way of controlling asset, cost and expenses
He/she must have the ability to manage the companys funds.
He/she will be in-charge of the cash register
He/she will be in-charge of supervising the profit of the company
Job Specification:
He/she must be a graduate of a degree course and has knowledge in accounting
He/she must have enthusiasm in work
With or without working experience
He must be a computer literate
Proficient in Microsoft Application or related software
Job Title: Customer Relation
Job Description:
He/she will be responsible in assuring good quality of service
He/she will be responsible in the development of the service that we rendered to the
customer
Job Specification:
Male or female
He/she must have a good oral communication
Highly proficient in various computer software and familiar with Internet