KIM E. MUÑOZ BITCOMP.

TECH 3 3 RD SHIFT

CHAPTER1 PROJECT SUMMARY

INTRODUCTION

Computer shop business is one of the most in demand businesses here in cebu.
Nowadays, internet cafes are really in demand because of the fast changing technology that
the people embraced just like here in the Philippines. Some have their own laptops and bring
it to coffee shops so that they could relax and at the same time prepare their assignments
and paper works. The people today are very busy and would want to do their jobs in a
beautiful and innovative environment that could satisfy their needs and lessen their stress
due to busy schedule.

NAME OF THE FIRM

The proposed name of the firm is “KM COMPUTER SHOP”. The owner will register the
firm with the Department of Trade and Industry (DTI) and Local Government Unit (LGU)
concerned. The firm will be registered as single proprietorship. The business is about computer
shop.

LOCATION

The business will be renting a space along Hi-way near in municipal hall and school.
The target consumers are students, teachers, office workers, and nearby neighborhood
especially those people whose relatives or loved ones are abroad.
The two hundred (200) meter radius requirements as provided in the existing zoning code and
other 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 church, schools, hospitals and other government offices
shall be strictly complied with.

LONG RANGE OBJECTIVE PROJECT

The KM Computer Shop looks forward to be the most competitive shop in Dumanjug
and nearby towns of Cebu. The proponent dreams of making profit and staying long in the
business.

For operating and establishing “KM COMPUTER SHOP”, I am having some objectives.

1. To earn profit at less investments.

2. To satisfy our customers providing best quality service at effectiveprice.
3. Providing the service at low cost by providing the best quality at affordableprice.
4. To know a fair return on the capital invested by theowner.
MARKET STRATEGIES

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, bus and jeepney stations, friends, and relatives. Games and services offered
will be displayed on the store window. I will offer promo’s to attract the consumer like cheaper
 rate for computer rental, and membership card. I will put a tarpaulin on the place itself where
my shop is standing, promoting the opening of my computer shop also one month before the
opening. To let the people know that there will be a new Computer Shop on the vicinity.

Lastly, I will keep developing my skills by attending seminars to improve my knowledge

and to be updated in this business.

CHAPTER 2

MARKET 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. “KM Computer Shop”
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 “KM Computer Shop” provides.

GUDELINES OF BUSINESS

 All malicious sites areblocked.

 We’re not allowing inserting flash drive or any storage device without the
consent of the shop staff.
 Eating and drinking in the gaming and typing area is not allowed, they are
only allow to eat and drink in the waitingarea.
 One person for one unit to maintainorderliness

AMBIANCE

 Not too dark and bright because we want the shop more encouraging to work and play.
 Our computer tables have a board between users for privacypurposes.
 All furniture are fully furnished and laborincluded

PRICE STUDY

It is one of the considerations of the customer that enhance them to rent computers. If
the price is lower they will rent.

The following services are:

Amount
Internet/Games Php. 15.00 /
hour Printing black&white(short) 4.00
(Long) 5.00
 Colored(logosize) 8.00
Photocopying (short) 0.75
(Long) 1.00
Scanning 10.00
CD burning (max. of17songs) 35.00

INTERNET CONNECTION

The major cost of a computer shop is the internet connection. For providing
better service, the proposed project will use a high band width connection for better
speed as the project is going on to provide service of video chat. It is recommended that
the internet connection should be taken from the best internet service provider.

RECOMMENDED CONNECTION

If the project is set up in area, where PLDT Internet connection is available, it is

recommended to use PLDT Internet connection instead of any other Internet connection. This
will improve the speed of internet, which will improve the performance of video chat and will
also reduce the telephone expense.

MARKETING PROGRAM

KM Computer Shop has three main strategies. The first strategy focuses on
attracting novice Internet users, by providing a novice friendly environment, KM Computer
Shop hopes to educate and train a loyal customer base.

The second, and most important, strategy focuses on pulling in power Internet users.
Power Internet users are extremely familiar with the Internet and its offerings. This group of
customers serves an important function at KM Computer Shop. 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 KM Computer Shop
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 KM Computer Shop,
these customers that came for the more standard entertainment offerings will realize the
potential entertainment value the Internet can provide.

ATTRACT POWER INTERNET USERS

KM Computer Shop’s second strategy will be focused on attracting power Internet

users. Power Internet users provide an important function. KM Computer Shop plans on
attracting this type of customer by:

 Providing the latest in computingtechnology.

 Providing scanning and printingservices.
  Providing access to powerful softwareapplications

The large student and nearby neighborhood population will become an important part
of the KM Computer Shop customer base. The student population continues to grow with the
success of the educational institutes. Access to the internet, entertainment, and the upscale
ambiance will attract the students. Business community is growing rapidly with the addition of
new companies day by day.

KM Computer Shop will provide an opportunity to local and traveling professionals to

check their e-mails communications; this will be an attracting entity for the middle income
group and for the residents of Dumanjug as they do not have access to the internet at their
living places.

MARKET GROWTH

The market for the services KM Computer Shop will offer is growing rapidly. The
computer shop hasn't come to this area yet, but similar services are growing rapidly on a
global scale. Large cities that cater to large numbers of traveling business people have been
saturated with businesses offering the services KM Computer Shop will offer. Business people
use the Internet services to catch up on email and communications with their family. My area
supports a population that has many of the same needs and interests of this larger group. The
student population continues to grow as the University grows in popularity with high-school
graduates from out of state. These students tend to have money and an interest in up-scale
social centers.
KM Computer Shop will target these groups with the use of fliers and tarpaulin.

STRENGTHS

1. Knowledgeable and friendly staff – I’ve gone to great lengths at KM Computer Shop to
find people with a passion for teaching and sharing their Internet experiences. My staff is
both knowledgeable and eager toplease.
2. Modern equipment – Part of the KM Computer Shop experience includes access to
 modern computer equipment. My customers enjoy beautiful and convenient units’
displays, fast machines, and high-quality printers.
3. Up-scale ambiance – When you walk into KM Computer Shop or even sit at my waiting
area, you'll feel the technology. Great sound background, nice lighting that sets the mood
and the whole area was clean.
4. Clear the vision of the market need – KM Computer Shop knows what it takes to build an
upscale computer shop. I and my staff know the customers, the technology, and how to
build the service that will bring the twotogether

WEAKNESSES

1. A dependence on quickly changing technology – KM Computer Shop is a place for people

to experience the technology of the Internet. The technology that is the Internet changes
rapidly. Product lifecycles are measured in weeks, not months. KM Computer Shop needs
to keep up with the technology because a lot of the KM Computer Shop experience
istechnology.
2. Cost factor associated with keeping state-of-the-art hardware – Keeping up with the
technology of the Internet is an expensive undertaking. KM Computer Shop needs to
balance technology needs with the other needs of the business. One aspect of the business
can't be sacrificed for the other
OPPORTUNITIES

1. Growing population of daily Internet users – The importance of the Internet almost equals
that of the telephone. As the population of daily Internet users increases, so will the need
for the services KM Computer Shopoffers.
2. Social bonds fostered by the new Internet communities – The Internet is bringing people
from across the world together unlike any other communication medium. KM Computer
Shop will capitalize on this social trend by providing a place for smaller and local Internet
communities to meet in person. KM Computer Shop will grow some of these communities
on its own by establishing chat areas and community programs. These programs will be
designed to build customer loyalty

MARKET NEEDS

More than ninety percent of my customers are youngsters and their only objective to
get to these is to get enjoyment.

MARKETUNG STRATEGIES

I create some advertising strategies like I will print a thousand of fliers printed with the
total cost of Php. 908.00 (500 pieces on small fliers that cost Php. 220.00, while the second
fliers are also 500 pieces with the cost of Php. 687.00), a month before the opening me and my
staff will distribute the fliers. I will also put tarpaulin on the place itself where my shop is
standing a month before the opening. It will promote the services offered and also the opening
of my Computer Shop. To let the people know that there will be a new Computer Shop on the
 vicinity. The tarpaulin size is 64” x 100”and amounting Php. 497.00.

MANAGEMENT STRATEGIES

Maintain a focus on quality products with bottom-line growth through cost reduction
and optimal performance. I also focus on technology and innovation to make sure our
employees skills are up to standard with today’s mode of production.

DEMAND AND SUPPLY ANALYSIS

The table and figure below will shows the projected demand and supply of KM
Computer Shop for the next five years in percentage.

Table 3
Percentage of Percentage of
Year Quantity Quantity
Demand Supplied
2017 15.08 14.98
2018 17.54 17.49
2019 20 20
2020 22.46 22.51
2021 24.92 25.02
100% 100%

FIGURE 3

2017 2018 2019 2020 2021

The figure 3 shows the projected demand and supply of KM Computer Shop for the
next five years.
In year 2017 there is a 15.08% of demand on internet services, that’s why KM Computer
Shop needs a 14.98% to supply the demand. In 2018 there is 17.54% in demand and 17.49% in
supply, while in 2019 it has a 20% both in demand and in supply. And in 2020 there is 22.46% in
demand and 22.51% in supply. For the fifth year 2021 it has a 24.92% in demand and 25.02% of
supply.
In totality, every year KM Computer Shop will increase of 2.46% in demand and 2.51%
 in supply.

CHAPTER 3

TECHNICAL FEASIBILITY

In this chapter, I will discuss the product, the manufacturing process of my

business including the plant size and production schedule. I will also discuss the
machinery and equipment and also the other computer application that I will use in the
business.
In order for me to lessen my expenses, I purchase equipment in packages. I focus much in the
hardware and software. I research on how much the hardware and software will cost me,
through net surfing.

THE SERVICE

The following services of KM Computer Shop are listed below:

 Gaming
 Typing
 Searching the net
 Printing/ Photo copying/Fax/Scanning
 Downloads
 Cd –burning
 ComputerRepair

For gaming I will install popular online games like dota Warcraft, Counter strike, Rules of
survival, crossfire, and valorant. In typing I will install original Operating System of MS Office
Professional 2007 like MS Word, Excel, Power point, Access, Desktop Publishing. I will have
printer, Scanner, Photocopier, and Fax Machine for the Printing, Photo copying, and faxing. KM
Computer Shop will also offer other services like DVD/CD burning, Pay phone, and Computer
Repair.

MANUFACTURING PROCESS

This is the KM Computer Shop’s manufacturing process.

 The “KM Computer Shop” will provide the product and services to the customers, and then
the customer will give income or profit to KM Computer Shop in return. The income or profit that
the customer gave in return will used to provide the product and services.

PLANT SIZE AND PRODUCTION SCHEDULE

The “KM Computer Shop” will operate seven days a week. KM Computer Shop opens
at 8:00 am ahead to the other competitors. This will lead my shop of being known. My goal is
to give the needs of the students and others in early manner of time.

KM COMPUTER SHOP’S SCHEDULE AND TIME

DAYS OPENING CLOSING OPERATING HOURS

MONDAY 8:00 AM 11:00 PM 15
TEUSDAY 8:00 AM 11:00 PM 15
WENSDAY 8:00 AM 11:00 PM 15
THURSDAY 8:00 AM 11:00 PM 15
FRIDAY 8:00 AM 11:00 PM 15
SATURDAY 8:00 AM 11:00 PM 15
SUNDAY 8:00 AM 11:00 PM 15
TOTAL OPERATING OURS PER WEEK 105

MACHINIRAY AND EQUIPMENT

 LIST OF HARDWARE BRAND NAME DESCRIPTION AMOUNT

ASUS 20 UNITS OF PC W/ 50,000.00

PACKAGE PC
COMPLETE ACCESSORIES
PRINTER BROTHER 3 IN 1 LASER PRINTER 10,000.00

MODEM PLDT 5,000.00

COMPUTER APPLICATION SOFTWARE
MS OFFICE 2010 100.00
MS EXCEL 2010 100.00
MS POWERPOINT 2010 100.00
ANTIVIRUS AND ANTI SPY WARE 100.00
GAME SOFTWARE
DOTA 2 500.00
CROSSFIRE 500.00
RULES OF SURVIVAL 500.00
VALORANT 500.00
CALL OF DUTY 500.00
TOTAL MACHINARY AND EQUIPMENT COST 67,900

FURNITURES AND FIXTURES

The project is based on ASUS computer systems. Second hand systems are also available in the
market at much lower prices. The reason for using the latest system is the new software coming in
the market that requires more powerful systems which will provide better service to the
customer. The price of computer systems varies with the introduction of new technology in the
market.

DESCRIPTION QUANTITY UNIT PRICE TOTAL PRICE

COMPUTER GAMING 20 400 8,000
TABLE
CHAIR FOR WAITING 10 200 2,000
AREA
AIR CONDITION 1 15,000 15,000
OFFICE CHAIR 4 300 1,200
PADLOCK 2 120 240
CABINET FOR THE 1 3,000 3000
SUPPLIES
TOTAL FURNITURE 29,440
AND FIXTURE COST

PLANT LOCATION

PLANT LAYOUT

KM’S COMPUTER SHOP

BUILDING AND FACILITIES

AMOUNT
RENT (2,000.00 * 12MONTHS) 24,000.00
CONSTRUCTION OF THE SHOP 5,000.00
TOTAL BUILDING AND FACILITY COST 29,000.00

RAW MATERIAL AND SUPPLIES

The material needed for the operation of the business:

Description Price

BondPaper 150.00 1RM

CDw/Case 13.00
Ball pen 150.00 1BOX

Stapler 100.00
Staplewire 45.00
664 BlackInk 1,000.00 3PC
664 Tri-Color 1,500.00 3PC
Record Book 30.00
Fire Extinguisher 10lbs. 4,000.00
TOTAL RAW MATERIALS AND SUPPLY COST 6,988.00

UTILITIES

DESCRIPTION MONTHLY COST TOTAL AMOUNT (YEAR)

ELECTRICITY 6,000 72,000.00
WATER 155.50 1,866.00
TOTAL UTILITY COST 73,866.00

LEGAL REQUIREMENTS

 Registration with BIR ( Bureau of InternalRevenue)

 Registration of Business Name with DTI (Department of Trade andIndustry)Barangay Clearance and
BusinessPermit
 Mayors Permit
LEGAL REQUIREMENTS COST

Barangay Clearance 100.00

Mayor’s Permit 4,000.00
Business Tax 1000.00
Business Plate 100.00
Sanitary Permit 300.00

Occupational Tax 400.00.

Inspection Fee 500.00
Electrical Inspection 200.00
Fire Inspection 300.00
BIR 300.00
DTI 6000.00
Total Legal Requirement Cost 13,200.00

LABOR REQUIREMENTS

Estimated Annual Cost for Salaries and Wages

DESCRIPTION MONTHLY SALARY ANNUAL SALARY

MANAGER 10,000.00 120,000.00
EMPLOYEE 5,000.00 60,000.00
TOTOTAL SALARIES AND 180,000.00
WAGES COST

REQUIREMENT ON HIRING AN APPLICANT

Applicant must be 21 years old, residence of Dumanjug

 Resume
 Two valid I.D.
 Birth Certificate(NSO)
 N.B.IClearance

 SSSnumber
 Vocational Graduate (computertechnician)
 Hardworking