CHAPTER III

RESEARCH METHODOLOGY
This chapter included a summary of the methods used in the
analysis. The discussion in the chapter was organized around the
research process, sampling and data collection methods, and the
statistical and financial analysis tools used by researchers to
determine the viability of the study.

Research Method Used

This thesis used the descriptive analysis method to define the
processes and procedures involved in the establishment of the
Tailor Shop. The Descriptive Analysis Approach explains the
features of the phenomena being studied. It was defined by the
researchers as the most applicable approach because it answered
the “what" issue. This research approach describes the data and
characteristics of the population under study. Its purpose is to
compile factual, precise, and systematic data that can be used to
measure forecasts, figures, frequencies, averages and other
required statistical calculations.

This type of approach involves collecting, classifying,

documenting and analyzing data on certain conditions at the time
of the analysis and on occasional relationships between
variables. It involves interviews, questionnaires, and surveys
for the collection of data related to the report.

Due to the COVID-19 pandemic and the tight enforcement of

enhanced population quarantine, researchers have maximized the
use of technology in analysis, particularly in data collection.
Researchers used the internet to communicate with their
respondents using google forms, emails, Facebook, and other means
of communication without infringing the enhanced group quarantine
or risking the health of researchers.

Techniques Used in Data Gathering

The researchers used the following methods to ensure the
authenticity of the evidence used and presented in this study.

1. Interview. The researchers conducted an interview to gather

sufficient information that is vital in the development of the
research study. The researchers employed the interview technique
to those people that are mainly concerned or have something to do
with the research study in order to be equipped with relevant and
reliable information regarding the operation of the “Tailor Shop”
business. Communicating with knowledgeable people served as the
main source of needed information. These techniques also helped
the researchers to determine the feasibility and viability of the
research study. Interview was conducted at business engaged in
the Tailor industry which is “Samahan ng Magsasaka Inc.”.

2. Observation. This methodology has allowed researchers to

endorse the knowledge or evidence obtained. The researchers were
able to verify the answers provided by the respondents by keenly
monitoring their behaviors. The observation technique was applied
at the suggested site. Where researchers have performed a
comprehensive review and examination of the profitability of the
company itself and the availability of the workers to sustain its
operation. Observation approach was effective in assessing the
marketability of the planned initiative.

3. Survey. This technique was carried out by the use of a

questionnaire in similar industries. Questions are prepared and
written in such a manner as to collect the necessary details. The
questionnaire helped the researchers to configure, if there is a
market for the product, what the respondents would like to see in
the company to be developed and to direct the researchers on what
to develop and what to eliminate in the proposed business.

4. Use of internet. Researchers have used the available computing

technologies to enhance the data collection process. It has
allowed researchers to analyze the evidence related to this
project.

5. Documentary Analysis. The library and the thesis library are

home to past works by former students and various books that can
be used by scholars to enhance and refine their studies. Previous
surveys, books, magazines, pamphlets, booklets, handouts, and
other articles have enabled researchers to collect enough
evidence to plan for this analysis. These written documents have
been valuable and essential to the development of this project.

Statistical Treatment of Data

The key conclusions in this analysis were focused primarily on
knowledge obtained from interviews and surveys performed in the
current tailoring sector and our target markets. Other topics
pertaining to real evidence were often discussed in books and
other printed materials.

Sample Size
The researcher used www.raosoft.com/samplesize.html to get the
proposed business sample size with 5% margin of error. The above-
mentioned website is a well respectable website used by
statistician all over the world to determine the research sample
size.
Unfortunately, as this feasibility is carried out there is a
continuing danger of COVID-19 in the country, which is why the
College of Business and Accounting agreed to limit the overall
sample size to 20 household as respondents and 10 Tailor Shops.

Sampling Method
The samples were taken by convenience sampling from the total
projected population of Tailor shops in Cabanatuan City.

Instrumentation
The researchers used a self-made sample questionnaire to collect
primary knowledge from the respondents.

The first part of the questionnaire consists of a personal data

sheet. This segment seeks information on the addresses, age,
address and estimated monthly income or allowances of the
respondents.

The last section of the questionnaire consists of questions

intended to relate to the marketing, technical, management,
social and financial facets of the study.

Statistical Treatment of Data

To summarize the respondents, the frequency distribution and
percentages were used, viewed, evaluated, and interpreted.

The researchers used a mixture of textual and tabular data

visualization approaches.

Tools in Financial Analysis

This provides a variety of financial analysis methods used by
analysts to assess the financial viability of the project report.
The following tools have been listed below:

1. Payback Period. This is the formula used to calculate the

amount of time taken to recover the expense of the investment.
The system of a project's payback time is an important
determinant of whether to pursue a project, since longer payback
times are generally not suitable for investment positions.

Payback Period = 𝑰𝒏𝒊𝒕𝒊𝒂𝒍𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕𝑪𝒂𝒔𝒉𝑭𝒍𝒐𝒘𝒇𝒓𝒐𝒎𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒐𝒏 27

2. Return on Investment (ROI). It offers reports on the success

of the management in using the tools of the small company to
raise sales. Bankers, customers and industry experts are used to
determine the company's utilization of capital and financial
power.

Return on Investment = 𝑵𝒆𝒕𝑷𝒓𝒐𝒇𝒊𝒕𝑻𝒐𝒕𝒂𝒍𝑰𝒏𝒗𝒆𝒔𝒕𝒎𝒆𝒏𝒕 x 100

3. Net Present Value (NPV). In the net present value rule, the
present value of the cash inflows of the project is equivalent to
the present value of the cash outflows of the project. The
difference in the current value of all cash balances is
considered the net present value. If the NPV is zero and above
the project is appropriate because it guarantees a return equal
to or greater than the specified rate of return. If the NPV is
negative, the project is not appropriate since it guarantees a
return smaller than the minimum rate of return.

NPV= PV of Cash Inflows – Cost of Investment