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Executive Summary

Butuan City only has two movie houses, Gaisano Mall Cinema and Robinsons
Movie World, currently operating to serve not only the almost 400,000 residents
of the City but also its neighboring towns. Each movie house has only four
cinemas. Because of this, the number of films to be shown is limited.

HD Movie House will provide the market a movie house where they can bond
with their loved ones and feel relaxed while watching high definition movies.
The customers can choose from a wide variety of films on the list that will be
provided by the management. Films to be shown will include popular movies in
the past and recent movies. The building that will house the facility will be built
at J.C. Aquino Avenue, Butuan City, beside Banco de Oro. The location is ideal
for businesses since it can easily be seen by the public and is accessible.

Every after two years of operations, HD Movie House will consider innovating
the service it offers to the market. On the 8th year of its operations, it will then
be open to franchising. With an initial investment of Php 4,000,000.00, we can
expect areturn of investment in 5 years.

Vision

We envision HD Movie House as a home of entertainment where couples,


families, and friends can bond and feel relaxed while watching high definition
movies together.

Mission

HD Movie House seeks to provide the customers big entertainment experience


in a room. Customers can enjoy high definition movies together with their family
and friends at an affordable price. It also commits itself to provide food and
beverages at a reasonable price to satisfy the customers.
Business Name

A business name is one the most essential things to be prepared in starting a


business. The right name can make your business the talk of the town
especially when it is unique and probably would catch their attention.
Therefore, the proposed name of our business is HD Movie House. It
originated from the word High Definition which means that our customers
can bond with their loved ones and feel relaxed while watching high definition
movies.

Business Logo

High Definition Beyond Your Vision

Business Location

The proposed business location is located at J.C. Aquino Avenue beside


Banco de Oro, Butuan City.
This location is composed of schools like Father Satunino Urios University and
AMA Computer Learning Center; establishments, apartments and boarding
houses.
Business Description

Cinema is the most complex and powerful art form in the present world.
Movies have always been about the social experience of "going out" to the
movies and having a good time. Just as people still go out to eat at restaurants
even though they can eat for much less at home, people will always go out to
the movies if the experience is enjoyable. Unfortunately, the studios and the
theater owners still don't get this and seem to have gone out of their way to
make the experience considerably worse over time.
There are two places people tend to watch movies: either in the comforts of
their own homes or out at the movie theaters. The reason for this is because
(1) youre impatient; (2) maybe its because you like to share your feelings and
experiences with a bunch of random strangers in the dark; (3) you only have
intentions of seeing it once and never looking back or; (4) you love to go watch
something on the big screen with a big bag of popcorn in your hand. There is a
certain experience that you can create at home, or that is given to you at the
theater that helps add to the magic and to your enjoyment of the film.
HD Movie House will provide the market a movie house where they can bond
with their loved ones and feel relaxed while watching high definition movies.
The customers can choose from a wide variety of films on the list that will be
provided by the management. Films to be shown will include popular movies in
the past and recent movies. The building that will house the facility will be built
at J.C. Aquino Avenue, Butuan City, beside Banco de Oro. The location is ideal
for businesses since it can easily be seen by the public and is accessible.
Market Feasibility

Market feasibility of business is deemed as a scientific tool to obtain


relevant information about the realities of a proposed market and to facilitate
potential entrepreneurs in project identification for investment. This will benefit
the investor by showing the business feasibility and its preference over
alternative investment opportunities, making the suitable decision, either by
proceeding further to the next stage of the economic feasibility study, or putting
off the idea of the business under study is subsequently reached.

In order to know if the business is feasible, a survey was conducted through


a questionnaire. The objectives of conducting the survey were aimed to
determine the following:

1. Frequency of students, young professionals and residents who are in need


of movie house services in Barangay Tandang Sora, Barangay Limaha and
Barangay Dagohoy, Butuan City.
2. Their willingness to avail movie house services.
3. Their preferences on the prices for the standard and big room offered in
the movie house.

The actual survey was conducted at the 3 Barangays mentioned above with
a total population of 28,255 which includes both the households and the
students of Father Saturnino Urios University (FSUU) and AMA Computer
Learning Center (ACLC). A total of 395 questionnaires were produced.

Demand Analysis

Too many businesses have emerged nowadays. This gives a positive look
for businessmen, who have just started in the industry, to put their investments
in certain business, particularly the Movie House Business in which the field is
not much penetrated.

The location of the business must also be considered. The location is ideal
for businesses since it can easily be seen by the public and is accessible. This
makes them a good market for the new business establishment. Because of
these reasons, we have chosen the students of FSUU and ACLC, young
professionals and residents of Barangay Tandang Sora, Barangay Limaha and
Barangay Dagohoy, Butuan City as our target market. It has a total population
of 28,255. To get the desired data as outlined in the objectives, we surveyed
395 participants.

20%

Yes
No

80%
Fig. 1. Participants in Need of Movie House Services

Barangay Tandang Sora, Limaha and Dagohoy has 28,255 total number of
population for the year 2015 and Father Saturnino Urios University has 5,380
total number of students who are enrolled for the 2 nd sem of the school year
2015-2016. As for AMA Computer Learning Center, they have 1,620 number of
students enrolled in the 2nd sem. With this total number of population and
students, the innovators have come up with a total number of 395 participants.

Out of the 395 participants, the innovators found out that 80% of them, or
316 people, are in need of movie house services. A total of 79 or 20% of the
respondents do not need movie house services.

4%; 4%
16%; 16%

42%; 42%

Once a week 2-3 times a week Once a month Others


38%; 38%

Fig. 2. Frequency of Watching Movies

Based on the survey conducted, the innovators found out the frequency of
watching movies of the participants. Out of the 316 participants who are in
need of movie house service, forty-two percent (42%) or 133 of them said they
watch movie once a week. While, thirty-eight percent (38%) or 120 answered
they watch movies 2-3 times a week and sixteen percent (16%) or 51
responded once a month. The four percent (4%) or 12 participants answered
others. In this 12 participants, 5 of them said that they watch movies 5 times a
week and another 7 said they watch twice a month.

8%
14%

Php 500.00/movie Php 600.00/movie Others


78%

Fig. 3. Prices for Standard Room (Maximum of 6 persons)

The graph above shows the prices per movie for the standard room that
the participants have chosen. Out of 316, seventy-eight percent (78%) or 246
preferred the Php 500.00 price per movie while fourteen percent (14%) or 45
chose Php 600.00. Eight percent (8%) or 25 answered other prices. Of this 25
participants, 5 of them answered Php 550.00 as the price per movie for the
standard room. Then, 15 participants preferred the price Php 400.00. Lastly, 5
participants answered Php 350.00 as their preferred price per movie.
8%
18%
Php 2,000.00/movie
74% Php 2,500.00/movie
Others
Fig. 4. Prices for Big Room (Maximum of 20 persons)

The graph shows the 316 participants choice on the prices per movie for
the big room of the movie house. About seventy-four percent (74%) or 234 have
chosen Php 2,000.00, and only eighteen percent (18%) or 57 answered Php
2,500.00 as their preferred prices. There were eight percent (8%) or 25 of the
participants who answered different price from the given ranges. The other
price was Php 1,500.00 per movie.
Robinsons Place Butuan Cinema 30%

Gaisano Mall Butuan Cinema 20%

At Home 50%

0% 10% 20% 30% 40% 50% 60%

Fig. 5. Where You Usually Watch Movie

The bar graph above shows the results of the 62% of the competitors
market share which consists of 196 participants from the question Where do
you usually watch movie? Fifty percent (50%) or 98 of the participants usually
watch movie at home. There were thirty percent (30%) or 59 participants who
usually watch movie at Robinsons Place Butuan Cinema and twenty percent
(20%) goes to Gaisano Mall Butuan Cinema to watch movie.
38%

62%
Fig. 6. Market Share

Out of the total sample population of the target market which is 395
participants, sixty-two percent (62%) of them or 245 is the competitors share
and this include also the 79 respondents who are not in need of movie house
service. Of this 62%, Thirty two percent (32%) of them is the share of At
Home, and Robinsons Place Butuan Cinema has fourteen percent (19%) as
its market share. Also, Gaisano Mall Butuan Cinema has eleven percent (11%)
as its market share. Of the 100%, HD Movie Houses market share is thirty eight
percent (38%).

Marketing Plans

Movie House Service and Pricing

HD Movie House will provide the following movie house services on a regular
basis:

Movie House Services HD Movie House

Standard Room (Maximum of 6 persons) Php 500.00 per movie

Big Room (Maximum of 20 persons) Php 2000.00 per movie

Service Summary of HD Movie House


Speed of Service Regular Service
Service Self-service
Products Cold Drinks/ Refreshers and Snacks/Chips
Store Hours Monday to Sunday
10:00am-3:00am
Wifi Need to pay first to avail wifi; fast connection
Exclusive Parking Big Parking Space
Space
Smoking Area Outside
Magazines Yes
Music/TV Music Only
Security With security guard
CCTV Available at the Reception Area, Parking Space
and Hallways
Comfort Rooms 1 each for male and female; Big Rooms have also
1 each for male and female

Milestone:

After 2 years- HD movie house will not just offer snacks and drinks, by this time
it will also offer meals.

After 4 years- This time HD movie house will upgrade its motion picture to 3D-
film in which it enhances the illusion of a depth perception by adding a third
dimension.

After 6 years- HD movie house will open more rooms for more filmgoers by
improving its building as well as the parking lot through expansion.
After 8 years- This time HD movie house will open its door to touch more
customers and reach to different places in the country because after 8 years of
success, it will then be open for franchising.

After 10 years- HD movie house will contact artists in the Philippines to perform
shows in the movie house for them to promote their upcoming movies or any
events, by that way the movie house will be a click to people because of the
famous artists.

Marketing Strategies
This refers to raising customer awareness of the services and creating
services loyalty. The slogan of HD Moviehouse would be High Definition Beyond
Your Vision

1. Leaflets and Flyers


Will be distributed upon the opening of the shop so that the market
will be able to be informed that it is already available
Will be personally done by the owner of the shop which has a
budgeted amount of Php 3,000.00
Will include the following information:
o Services Offered
o Pricelist
o Company Address and Contact Number
o Business Hours
o Business Slogan

2. Tarpaulin
To be placed in front of the shop and along the J.C. Aquino highway
Cost would be Php 2,500.00
Will include the following information:
o Business Name
o Business Address and Contact Number
o Business Logo
o Business Hours
o Business Slogan

3. Word Of Mouth

4. Create A Facebook Page

After the first year of operation, the following will be the Marketing Plan of the
business:
1. Radio Advertisement
2. LED Advertisement within the City

Activities and Promotions

During Fathers Day and Mothers Day


Free popcorn and 1 liter of softdrink for families composed of at
least 5 members
During Valentines Day
Photo booth
Open for surprise proposal to be done before or after watching a
movie
During Christmas and New Year Season
Offer Indie Movies for free for those who will avail 2 movies

Operational Equipment

Bose Acoustimass 5 Series Supplier:


V Stereo Speaker System Eleksis
Marketing
Price: 10,000 Corporation
Quantity:6 and Abenson
Life Expectancy:10 years
Description:
Feel every nuance of your
music come through in shining
detail with the Acoustimass 5
Series V system. Two
redesigned Direct/Reflecting
Series II speakers feature a
slim profile that adds style to
the sound. And a hideaway
Acoustimass module delivers
deep low notes for all your
favorites. If there's a place for
music in the larger spaces of
your home, this system will fit
right in.

Bose Acoustimass 6 Series


V Home Theater Speaker
System

Price: 15,000
Quantity: 3
Life Expectancy: 10 years
Description:
Slim and stylish Virtually
Invisible speakers only stand
about 3.5 inches high. But
they reproduce a level of
sound that belies their size.
The kind of sound that adds
impact to action sequences
and a newfound power to your
music. Newly redesigned, the
speakers fit snug to your wall
with optional brackets, so they
blend in nicely with your HDTV
as well. The Acoustimass 6
Series V system features five
Virtually Invisible Series II
cube speakers for quality
surround sound. A powered
Acoustimass module offers
low-frequency effects that
lend realism and emotional
impact to everything you
watch.
Sony Bravia 32 in. KDL
32W700B

Quantity: 1
Life Expectancy: 5 years
Price: Php 12,000.00
Description:
Experience stunning
picture qualityfrom Blu-
ray discs and regular TV
broadcasts to web videos
and smartphone clips.
Sony's unique processing
engine analyzes, cleans,
and refines images for
beautiful results, with
dramatically reduced
picture noise for the truest
quality of Full HD.

Acer P1173 3000 ANSI


LUMENS

Quantity: 9
Price:Php 15,950.00
Life Expectancy: 5 years
Description:The new acer
color boost technology for
vivid, life-like images.

Set of Dataworx Budget


Computer Package

Quantity: 1
Color: (Black)
Life Expectancy: 5 years
Price: Php 11,879.50
Samsung
AR09JVFSBWKNTC
1.0HP Standard Inverter
Split Type Air
Conditioner

Quantity: 6
Life Expectancy: 6 years
Price: Php 15,000.00

Samsung R5500 Wall-


mount AC with Faster
Cooling, 24000 2.0HP

Quantity: 3
Life Expectancy: 6 years
Price: Php 18,000.00

Furnitures and Fixtures

Sofa Millennium
Quantity: 2
Life Expectancy: 5 years
Price: Php 5,970.00

Office Chair

Description:A nylon-based
chair with high quality gas lift
that ensures smooth height
adjustment and special fabric
upholstery in high density
foam used in the office.
Price:900.00
Quantity: 1 pc
L.E. : 5years

Lexus Dining Set

Quantity: 1
Life Expectancy: 6 years
Price: Php 4,350.00

Office Table

Description: MDF laminated


office table (L57 x W117 x
H72cm) used by the staff in
the office.
Price:1,500.00
Quantity: 1 pc
L.E. : 5 years

Cabinet

Description: Three-layered
laminated wood without door
cabinet (30 x 41 x 91) used
in the office.
Price:850.00
Quantity:1 pc
L. E.: 5 years
28590 Corner Home
Theater - Samba 3

Quantity: 9
Life Expectancy: 10 years
Price: Php 18,000.00
Description: Recliner seat
7 seater set

Classic and Traditional;


Brown Bonded Leather
Recliner Chair

Quantity: 6
Life Expectancy: 10years
Price:Php 12,000.00
Description: Love seat, sofa
size 6 seater set

Toilet

Description:An elongated
white dual flush toilet made
of grade A vitreous china.
Quantity: 5
Price:1,225.00
L.E. : 10 yrs

Faucet

Description:POZZI 9925-20
SGL LEV faucet for cold water
only used in the comfort
room.
Quantity: 6
Price: 856.00
L.E. : 10yrs
Lavatory

Description:POZZI/LAV PWK-
2027 Burri wall hang basin
installed in the comfort room.
Quantity: 6
Price: 720.00
L.E. :10 yrs

Beanless Bag Chair

Quantity: 3
Life Expectancy: 5 years
Price: Php 1,500.00
Description:
Intex completes the Beanless
Bag Chair line with the
introduction of a warm,
neutral color combined with
our revolutionary new
corduroy texture flocking! It's
elegant and luxurious look
and feel will add a new
dimension to any room.
Noble Center Tablle

Quantity: 6
Life Expectancy: 5 years
Price: Php2,998.00
Description:
83x83x32 cm center table
KL6163 Dark Brown Table

Quantity: 6
Life Expectancy: 5 years
Price: Php3,900.00

Supplies

Ball Pens

Quantity: 24
Life Expectancy: 1 year
Price:Php 120.00 @ 5.00 each

Scotch Tape

Quantity: 5
Life Expectancy: 1 year
Price:Php 62.50 @12.50 each

Record Book- 300 Pages

Life Expectancy: 1 year


Price:Php 100.00

Official Receipt

Quantity: 5 pcs. for 500 sheets


Life Expectancy: 1 year
Php 1,687.50 @337.50 each
Fire Extinguisher

Quantity: 5
Life Expectancy: 5 years
Price: Php 1,600.00

Movie Supplier: Blu-Ray Manila

Quantity:3000 regular movie


100 3D movies
Price: Regular = Php 50,000.00
3D = Php 20,000.00
Life Expectancy: 10 years

Calculator

Quantity: 1
Life Expectancy : 5 years
Price: Php 200.00
Organizational Structure

OWNER
(Manager and Supervisor)

CASHIER (2) FOOD STAFF (2)


MAINTENANCE STAFF (2)
SECURITY GUARD

In a movie house, like any other ventures, the number of staff and the
complexity of the organizational structure depend on the nature of the
operations or the business as a whole, its size, and the capacity to generate
enough funds to pay the salaries of employees while still realizing profits.

The structure presented is simple as it involves 8 persons. The main


reason for such structure is to avoid costs for salaries of having more
employees. It is nice to have many staff so that one can focus on a particular
task but the size of the entity and the income it generates must absolutely be
considered. From that factor, having one or two employees assigned for several
roles or responsibilities may be more practical. For HD Movie House, the owner
will be the manager and supervisor. There will be two staffs each for cashier,
food and maintenance. The manager may perform those services also if
circumstances would necessitate such act.

Position with Job Description

SALARIES/BENE
POSITION JOB DESCRIPTION QUALIFICATION
FITS
Owner As the manager, he is In this study, the Proprietor can
the one responsible for owner must be the withdraw funds
overseeing the whole managerand also be from the
operations. He is also the supervisor. He business
the one who make must have a Degree anytime.
decisions and plans for in Business or Withdrawal is not
the business. Aside Management or the part of salaries
from being the equivalent in expense.
manager, he will also experience. Having
act as the supervisor engaged in this
who is assigned in business would
monitoring the cashier require him to have
and staff. He may also adequate knowledge
perform those services of the movie house
offered by HD Movie services. He must
House if circumstances already know how to
would require such act. operate the
equipment and how
to perform the
services offered by
HD Movie House.
Such knowledge and
skills may be
acquired through
experience, research
and other ways which
would cause him to
be keen on such
operations.
The cashier can be
male or female with
ages 20-30. He/She
must be a college
graduate. He/She
must also be Salary is P
He/She is the one who
physically fit and 268.00 per day. It
turns on the cash
Cashier mentally alert. includes SSS,
register and operates it
(2) He/She also has to be Pag-Ibig, and
(sell tickets, food and
flexible and able to PhilHealth
refreshments)
work under pressure. benefits.
Moreover, he/she
must know the basics
on how to operate
the equipment in the
movie house.
The food staff can be
male or female with
ages 20-30. They
must be at least high
school graduate.
They must also be Salary is P
They are the ones who
physically fit and 268.00 per day. It
are assigned to
Food mentally alert. They includes SSS,
prepare and serve the
Staff(2) also have to be Pag-Ibig, and
food that is ordered by
flexible and able to PhilHealth
the customers.
work under pressure. benefits.
Moreover, they must
know the basics on
how to operate the
equipment in the
movie house.
Maintenan They are the ones who The maintenance Salary is P
ce Staff are assigned to clean staff can be male or 268.00 per day. It
(2) the establishment. female with ages 20- includes SSS,
30. They must be at
least high school
graduate. They must
also be physically fit
They clean the and mentally alert.
bathrooms and rooms, They also have to be Pag-Ibig, and
pick up trash, vacuum flexible and able to PhilHealth
lobby and aisles and work under pressure. benefits.
clean office area. Moreover, they must
know the basics on
how to operate the
equipment in the
movie house.
He must be within 25-
He is the person
45 years old. He must
responsible for the
have undergone a Salary is (P
security of the
pre-licensing training 268.00 per day.)
establishment. He is
Security course. He must be It includes SSS,
the one responsible for
Guard physically fit and Pag-Ibig, and
the protection and
mentally alert. He PhilHealth
safety of the people
must also be flexible benefits.
inside the
and able to work
establishment.
under pressure.

Management Style

1.) Hiring Process

The applicants are required to submit their resume on the position that they
are interested to apply for. The management will immediately evaluate and sort
those applicants. And whoever passed in the next stage will be informed by
means of a message on mobile phones. Each of them will undergo a brief
interview to personally determine if they are fit physically and mentally to the
position they were applying for and not only that but also to evaluate if they
really have the skill and ability to stay at the business. And those who
successfully overcome the process shall submit their requirements for legal
purpose employment. They must have not committed major crimes of any kind.

2.) Employee Satisfaction


Safe working environment keeps the employees free from any hazards and it
complies with the law providing safeties especially to the business operated.
There are safety precautions that should be apply, employees are segregated
based on their assigned jobs. Food Staff are required to wear hairnet when
doing their job. All employees will have a uniform that is comfortable to wear
and would not be hard for them to move freely. Personal hygiene is appropriate
to avoid disease or any illness.
There is specific baggage area for the employees where they can place their
bags or things to it. Their things will be check by the assigned personnel or the
owner before and after working hours to avoid thief or any misappropriation of
assets.

3.) Policy Implementation

Policies must be adapted by the management to ensure that its goals and
objectives, including employees task are properly worked out. The
management must typically institute policies on ethics, human resources,
accounting, and customer service.

Business Policies and Procedures

This policies and procedures are formulated to establish the rules of


conduct within the business, outlining the responsibilities of both employees
and the employer. This policies and procedures are placed to protect the rights
of the employees as well as the business interest of employers. These policies
are given to new employees to review, and they should sign a statement saying
that they read and understand the policies. The following policies and
procedures must be observed:

Employee Conduct
Employees must observe appropriate behavior, proper dress
code, and workplace safety procedures. This includes the procedures
employers may utilize to discipline in appropriate behavior including
warnings or employee termination.
Equal Opportunity
There should be equal opportunity and fair treatment in the
workplace. Antidiscrimination must be observed within the workplace
to discourage inappropriate behavior from employees and even
customers in regard to the race, gender, sexual orientation or religious
and cultural beliefs of another person in the workplace.

Attendance and Time-of


Employees must be present during the operation days one hour
before 10:00 in the morning and perform tasks assigned to them, as
such, employees must also comply the maximum time provided
therein which is 8 hours provided by the Labor Code of the Philippines.
The staff will be divided into two groups which is the Opener and the
Closer. Unreasonable absence of employee shall be sanctioned with
salary deduction.

Substance Abuse
Employees are prohibited to use drugs, alcohol, and tobacco
products during working hours, on business premises or during
business functions.

Dress Code
Employees must wear appropriate clothes that are presentable
to the customers. Appropriate clothes include polo shirt with the logo
of the business and pants. They must refrain from wearing clothes that
are commonly used at home such as sando and shorts.

Work Schedules and Breaks


Every employee that is assigned in their respective shifts must
comply eight working hours during working days as provided by the
Labor Code of the Philippines. A 1 hour dinner break must be observed
by the employees.

Salaries and Pay Schedule


Salaries and wages must be paid to the employees every 15 th
and 30th day of the month.

Cleanliness and Orderliness


Employees must observe cleanliness in their respective place of
assignment. Sanitation Code of the Philippines must be strictly
followed.

Customer Services
Courtesy to each other is strictly required, especially with
customers to avoid conflicts that may put the business name in risk.
Customers must be treated well and be provided with the services they
need for them to be satisfied.

4.) Internal Controls

These internal controls are established to provide reasonable assurance


about the entitys objectives with regard to the reliability of financial reporting,
effectiveness and efficiency of operations, and compliance with applicable laws
and regulations. The following internal controls must be applied:

CASH RECEIPTS AND ACCOUNTS RECEIVABLE

Receipt of cash is the responsibility of the cashier; no other


personnel may take over its job than the manager.

CASH DISBURSEMENT AND ACCOUNTS PAYABLE

Mark invoices paid to avoid duplicate payments.


All requests for check or cash disbursement should include a copy of
the original invoice or receipt. The invoice should clearly show what
is being purchased and the amount. Specify the individual (by title,
not name) who is authorized to approve cash or check
disbursements.
Consider the use of purchase orders for purchases over certain
amount. All purchase order (PO) should be approved and then
matched up with any incoming invoices and receipt of the goods
and/or services. Invoices without a pre-approved PO would not be
authorized for payment until reviewed and authorized by
management.
Create an approved vendor list to prevent employees from setting
up their friend or relative as a vendor, who then sends in legitimate-
looking bills to be paid. Management must approve a vendor before
any business can be done with that vendor.
Check signor should not be the one making the checks. Review the
check for signing, compare the check amount, payee, to supporting
documentation such as invoice, purchase orders, and item receipt.
Print out a check register of all checks paid and verify
completeness. Make sure that all checks per register have been
reviewed and signed and that there are no additional checks.
Have someone, other than the one who prepared the checks, mail
the checks.
If an employee is sent to a store with a black check to purchase
supplies, upon returning, the employee should submit a receipt that
shows the items purchased and the total tying to the amount of the
check.
If petty cash is used, a petty cash ledger should be maintained and
receipts attached for outflows.

PAYROLL

Have documentation for any changes to payroll rates such as a


status change form. Ensure that changes are made accurately and
with authorization. Status form should be signed by the business
owner and kept in the employees permanent HR file to serve as a
documented paper trail.
A Daily-Time-Record (DTR) of time spent by each employee must be
kept. Timesheets should be created and approved before payroll is
paid.

SUPPLIES
Purchase Orders should be created and matched with Item Receipts.
Then account payables should match the bill from the vendor to the
item receipt prior to approval for payment.
Documentation should be created and maintained for all
requisitions of supplies.
Supplies should not be taken without proper paper works. Any
supplies taken for samples, donations, or discarded due to damage
or obsolescence must be properly documented and approved.
If employees are allowed to purchase supplies, a form should be
created and approved to document when supplies are purchased by
the employee.

ASSET SAFEGUARDING

Locking doors, offices, file cabinets, blank checks and more.


Restricting access when and where possible.
Passwords and firewalls in computers.
Background check for every employee hired.
Listen to customer/vendor complaints; they could be an indication
of a problem.

Operating Schedules

DAY
TIME
MONDAY-SUNDAY
Workers must be at the movie
9:00 AM
house.
Workers clean the interior and
surrounding area of the business
9:00 AM 10:00 AM
premises. Files must be organized
and placed in the shelves.
10:00 AM The business is open for customers.
10:00 PM 3:00 AM Working hours
3:00 AM 3:30 AM Cash count; area is cleaned.
3:30 AM Establishment is closed.

Legality of Operation

1.) Registration of Requirements

Essentially, a sole proprietor business legally comes into existence when the
business owner registers the business name and obtains any relevant business
licenses.

Government agencies for registration

Department of Trade and Industry


Local Government Units where your business is located:
a. Barangay
b. Mayors Office
Bureau of Internal Revenue
Legally Required Registration of Employee Benefits

Employers are legally required to provide certain benefits for employees.


Employee benefits play an important role in the lives of employees as well as
their families. For that reason, the benefits you offer can be a deciding factor for
a potential employees decision to work at your business.

Employees registration to the following:


a. SSS
b. PhilHealth
c. Pag-ibig HDMF

Basic requirements and procedure in registering a Sole Proprietor


Business

1. Register a business name at DTI


Come up with three business names
Search in the DTIs website if there is an existing name similar to yours
If your business name is available, fill up business name (BN) Application
Form
Submit your completed BN application form to DTIs offices/branch
Wait for your DTI Certificate of Registration

2. Registration with Barangay


Go to the barangay where your business is located to secure and fill-up
application form
Submit your completed application form together with the following:
Certificate of Business Registration from DTI
Two valid IDs
Proof of Address such as Contract of Lease
Claim Barangay Certificate of Business Registration

3. Register your business in the Mayors Office


Go to the municipal office where your business is located to secure and
fill-up application form
Submit your completed application form together with the following:
Certificate of Business Registration from DTI
Barangay Clearance Certificate
Two valid ID
Proof of Address such as Contract of Lease

4. Register in the Bureau of Internal Revenue (BIR)


Go to Regional District Office where your business is located
Fill-up the BIR Form 1901- Application for Registration (for Sole Proprietor)
Submit completed registration form together with the following:
Certificate of Business Registration from DTI
Barangay Clearance Certificate
Mayors Business Permit
Proof of Address such as Contract of Lease
Valid ID
Pay the registration form (BIR form 0605)
Register your book of accounts and receipts/invoices
Claim your Certificate of Registration (BIR Form 2303)

Business Permit and Amount of


Licenses Registration
Registration with DTI 215.00
Registration with Barangay 100.00
Business Permit in Mayors 5,027.00
Office
Registration in BIR 500.00
TOTAL 5,842.00

2.) Reportorial Requirements

Bureau of Internal Revenue (BIR)

For self-employed individuals such as proprietors, professionals and those with


both business and compensation income, you will use BIR Form 1701. It must
be prepared in 3 copies (one for BIR, one for the Authorized Agent Bank and one
for your copy).

Below are the documentary requirements that should be attached with the
return, if applicable. For taxpayers earning both business income and
compensation income, BIR Form 2316 should be attached.

1. Certificate of income Tax Withheld on Compensation (BIR Form 2316), if


applicable.
2. Certificate of Income Tax Payments not Subjected to Withholding Tax (BIR
Form 2304), if applicable.
3. Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if
applicable.
4. Waiver of the Husbands right to claim additional exemption, if applicable.
5. Duly approved Tax Debit Memo, if applicable.
6. Proof of Foreign Tax Credits, if applicable.
7. Income Tax Return previously filed and proof of payment, if filing an
amended return for the same year.
8. Account Information Form (AIF) or the Certificate of the independent CPA
with Audited Financial Statements if the gross quarterly sales, earnings,
receipts or output exceed P 150,000.00
9. Proof of prior years excess tax credits, if applicable

Social Security System (SSS)

1.) Submit annually an updated SSS Form L-501 (Specimen Signature Card).
2.) Submit a summary of all employees contributions thru SSS Form R-3s
(Contribution Collection List) together with a copy of the Special Bank
Receipt (SBR) and SSS Form R-5 (Payment Return Form) within 10 days
after the applicable quarter.
3.) Remit to the SSS all salary, educational, stocks investment or privatization
loan authorization of their employees and submit an accomplished SSS
Form ML-1 (Monthly Salary/Calamity/Emergency/Stock Investment Loan
Payment Return) to any of the SSS accredited banks within the first ten
(10) calendar days following the month when said amortizations are due
and applicable.
4.) Submit a summary of all employees loan amortization thru an
accomplished SSS Form ML-2 (Collection List) with copies of the SBRs and
SSS Form ML-1 on or before the 10 th day following the applicable month to
the nearest branch.

PhilHealth

1.) Remit premium contributions of employees together with the employers


counterpart premium to PhilHealth or any accredited bank/agency on or
before the 10th day of the month following the applicable month.
2.) Submit to PhilHealth the Employers Remittance Report (RF-1) on or
before the 15th of the month following the applicable month.
S.W.O.T Analysis for Movie House Industry

Strengths

- HD quality viewing
- Offers affordable/lower prices than other movie theatre provider ( cost
advantage)
- Variety of movie genres where customers has an option to choose
whatever movie they wanted to watch
- Available to everyone (no age limit)
- Privacy allowed
- Technology-advantage
- Greater innovation to produce products and services that meet the
customers need
Weaknesses

- It would be in the long run to recover the cost


- Minimum persons allowed to enter the facility

Opportunities
- Substitute for students alcoholic-free activities
- Open for franchising
- Very accessible/ visible to highways
- Contractors/suppliers may negotiate with the movie theatre business
and gain earnings

Threats
- substitute for popular entertainment or other options ( e.g. bar, home
viewing, etc)
- bigger space and larger movie selection offered by competitors
- subject to government regulations
- intense competition ( competitors can entice customers away with
superior products/services)

Analysis on HD Movie House's Five Forces Model

Power of Buyers
Customers directly affect the business through revenues. This part of the
analysis shows the influence of buyers on the conduct of its business. In HD
Movie House's case, the following pressures or external factors are the main
contributors to the strong force of bargaining power of buyers:

Low switching cost (strong force);


Availability of substitutes (strong force).

Low switching cost means that customers can easily change from HD
Movie House to other alternatives without costing them extra money. Though
tickets from other movie houses located in the City are more expensive than
HD's, other substitutes also exist. Customers can opt to watch movies in their
own house using their own televisions or by watching movies online. Another
factor is the availability of substitutes. There are two existing movie houses
operating in Butuan City and due to advancement in technology, customers can
also watch and download movies online. DVD's are also widely available.

In this part of analysis, the combined effect of the mentioned external


factors is strong.

Power of Suppliers
Suppliers want to influence its customers to improve their businesses.
This part of the analysis shows the relationship between the company and its
suppliers. In HD Movie House's case, the following external factors contribute to
the moderate force of bargaining power of suppliers:
Low number of suppliers (strong force);
Switching costof firms in the industry (weak force).

There are only a few numbers of suppliers in the movie industry. This
makes the bargaining power of suppliersstrong. However, the cost in switching
from one supplier to another is low. This somehow weakens the power of
suppliers.

Thus, this part of the analysis shows that the bargaining power of
suppliers is moderate.

Rivalry among Competitors


There is a strong force of competition in the movie industry. This
component of the analysis determines how competing companies affect each
other. In HD Movie House's case, the following external factors are the main
contributors to the strong force of competitive rivalry in the movie industry here
in Butuan City:

Brand identity (strong force);


Switching cost (weak force).
Movie houses are aggressive against each other. They are very
competitive when it comes to innovation. There are existing two established
movie houses here in the City Gaisano Cinema and Robinsons Movie World.
They differentiate through cost, brand image and the kind of service they offer.
The competitors' ticket prices are more expensive than HD's. This weakens the
competitiveness of the competitors.
This part of the analysis shows that the company must identify strategies
that would address the strong force of competitive rivalry.

Threat of Substitutes
Substitutes affect a business by competing with the company's services.
This component of the analysis determines the impact of substitute products to
the business. In HD Movie House's case, the following external factors are the
main contributors to the strong force of threat of substitution:

Low switching cost (strong force);


High availability of substitutes (strong force);
Price-performance trade-off of substitutes (moderate force).

It is relatively easy for customers to shift from HD Movie House to


substitutes. Substitute to HD Movie House's service offerings includes DVD's,
online movies, and downloadable movies available in the Internet. Today,
substitutes are widely available. Interested movie-goers might consider buying
DVD's which is cheaper than watching movies in the cinemas. Others may even
download movies for free using the Internet. However, some of these
substitutes are less convenient.

The combination of such external factors creates a strong threat of


substitution.

Threat of New Entrants


New entrants are the potential competitors that may threaten HD Movie
House. This part of the analysis shows the potential impact of new entrants. In
HD Movie House's case, the following external factors contribute to the weak
force or threat of new entrants:

High capital cost (weak force);


High cost of brand development (weak force);
Lots of legal requirements to comply with (weak force).

The threat of new entry to HD Movie House is weak. The cost of


establishing, maintaining and promoting the firm is really high. There are also a
lot of legal requirements to comply with.

These barriers weaken the effects of new entrants. This part of analysis is
among the least of HD Movie House's concerns.
FINANCIAL STATEMENT ANALYSIS

Net Profit Margin


Year 1 Year 2 Year 3 Year 4 Year 5
1,288,125. 1,654,500. 1,788,545. 1,985,675. 2,245,685.
Revenue 00 00 00 00 00
(217,424. (82,738.1
Net Profit 19) 1) 209,970.16 341,811.98 521,291.33
Net Profit
Percentage -16.88% -5.00% 11.74% 17.21% 23.21%

Return On Investment
Year 1 Year 2 Year 3 Year 4 Year 5
(217,424. (82,738.1
Net Profit 19) 1) 209,970.16 341,811.98 521,291.33
Divided by:
Average 1,562,500. 3,085,000. 4,430,500. 6,179,650.
Investment 312,500.00 00 00 00 00
ROI -0.70 -0.05 0.07 0.08 0.08

Operating Cash Flow to Current Liabilities Ratio


Year 1 Year 2 Year 3 Year 4 Year 5
Operating Cash 725,230.9 1,036,571. 1,288,494.
Flow 300,345.72 9 850,654.09 00 50
Divided by:
Current Liabilities 38,123.46 31,641.90 32,434.09 33,305.40 34,264.05
7.88 22.92 26.23 31.12 37.60

Return on Equity
Year 1 Year 2 Year 3 Year 4 Year 5
(217,424. (82,738.1
Net Profit 19) 1) 209,970.16 341,811.98 521,291.33
Divided by:
Shareholder's 5,504,077. 6,359,298. 5,489,204. 5,960,343. 6,671,656.
Equity 35 80 61 20 65
-4% -1% 4% 6% 8%
Current Ratio
Year 1 Year 2 Year 3 Year 4 Year 5
1,210,343. 1,810,622. 2,678,078. 3,966,572.
Current Assets 771,907.22 21 30 30 80
Divided by:
Current Liabilities 38,123.46 31,641.90 32,434.09 33,305.40 34,264.05
20.25 38.25 55.82 80.41 115.76

Acid-Test Ratio
Year 1 Year 2 Year 3 Year 4 Year 5
1,207,843. 1,807,622. 2,674,578. 3,963,072.
Quick Assets 769,907.22 21 30 30 80
Divided by:
Current Liabilities 38,123.46 31,641.90 32,434.09 33,305.40 34,264.05
20.20 38.17 55.73 80.30 115.66

Working Capital
Year 1 Year 2 Year 3 Year 4 Year 5
1,210,343. 1,810,622. 2,678,078. 3,966,572.
Current Assets 771,907.22 21 30 30 80
Current Liabilities 38,123.46 31,641.90 32,434.09 33,305.40 34,264.05
PHP PHP PHP PHP
PHP 1,178,701. 1,778,188. 2,644,772. 3,932,308.
733,783.76 31 21 90 75

Debt-to-Equity Ratio
Year 1 Year 2 Year 3 Year 4 Year 5
Total Liabilities 38,123.46 31,641.90 32,434.09 33,305.40 34,264.05
Divided by: Total 5,504,077. 6,359,298. 5,489,204. 5,960,343. 6,671,656.
SH Equity 35 80 61 20 65
1% 0% 1% 1% 1%
Salary Rates
Hours / Salary per
Staff No. Rate month mo
1
Nurse 2 30.00 50 13,000.00
1
Guidance Couselor 1 00.00 100 10,000.00
Total per mo 23,000.00
230,000.0
Annual Salary 0
Table of Amortization Land
Table of Amortization Building
Income Projection
First and Second Semester Summer Semester
Year Ye
ofaEn Un
r rolleeit Tu
ss Take ion Mis
itn Fee Ma
c Fe Com
etricu S
p L
lation ape
be
Fe
ch
eLNS
abTP eSe
FeFe Ye
ubtotal aEn Un
r rolleeit Tu
ss Ta n Mis
ition
ke Fec Ma
e Fee Su
triculation GRAND
btotal TO
x29 x Php 3x
50Php 1 x4
,1 Ph
0 p 200 x Php 400
x Php 900 (1
x Php 15s
0t & 2ndLe
Seve
m)l x9 x5Ph
x Php 3 0 p 1x4
,1Ph (S
0p 200 (1
ummers
St,
em )d & Sum
2n
O peraLevel
tion
1 146 332,880.00
2,963,800.00
8468 11
262,800.00
58,400.00 3,778,481
43,800.00
6,800.00 1
0.0023 1,107 140,220.00
387,450.00 552,270.00
24,600.00
2 0 0 - - - - - - - 2 0 - - - - -
1
3 0 0 - - - - - - - 3 0 - - - - -
PHP 4,330,7
4 0 0 - - - - - - - 4 0 - - - - -
1 174 10093
2,532,200.00 31
69,600.00
396,720.00 139,200.00
3,200.00 4,503,1
52,200.00 21 1
0.00 60 1,440 182,400.00
504,000.00 718,400.00
32,000.00
2 135 2,740,500.00
7830 108,000.00
243,000.00
54,000.00
307,800.00 2 1
3,453,300.0010 125,400.00
990346,500.00 493,900.00
22,000.00
2
3 0 0 - - - - - - - 3 0 - - - - -
PHP 9,168,7
4 0 0 - - - - - - - 4 0 - - - - -
1 207 1 4,202,1
2006 471
00.00 82,800.00
,960.00 1 62,1
65,600.00
372,600.00 5,357,1
00.00 1
60.000 - - - - -
2 156 9048
3,166,800.00 62,400.00
355,680.00 124,800.00
280,800.00 3,990,482
0.000 - - - - -
3
3 104 6032
2,111 237,1
,200.00 41
20.00 187,200.00
,600.00 2,577,1 0.000
23 - - - - -
PHP 11,924,7
4 0 0 - - - - - - - 4 0 - - - - -
1,212,300.00
Utilities
1 246 14264
8,993,800.00 98,400.00
560,880.00 196,800.00
442,800.00 6,366,481
73,800.00 270
0.00 850,500.00
2,430 54,000.00
307,800.00
2 191 11073
8,877,300.00 76,400.00
435,480.00 152,800.00
343,800.00 4,885,782 1
0.0087 1,683 213,1
589,050.00 80.00 839,630.00
37,400.00
4
3 135 7830 307,800.00
2,740,500.00 243,000.00
54,000.00 3 1
3,345,300.0029 1,1 406,351
61 0.00 579,21
25,800.00
47,060.00 0.00
PHP 20,155,
4 102 5912,070,600.00
6 183,600.00
40,800.00
232,560.00 - 2,527,564
0.0089 801 101 1
,460.00
280,350.00 399,61
7,800.00 0.00
1 293 16995
4,947,900.00 117,200.00
668,040.00 234,400.00
527,400.00 7,582,841
87,900.00 351
0.00 3,151
9,1 4
05,65 00,1
0.00 40.00 1,575,990.00
70,200.00
2 227 131 4,608,1
66 517,560.00
00.00 181
408,600.00
90,800.00 ,600.00 5,806,662 243
0.00 2,1 765,452
87 0.00 1,091
48,600.00
77,020.00 ,070.00
5 3 143 326,040.00
2,902,900.00
8294 257,400.00
57,200.00 3,543,543 1
0.0068 1,51 191,520.00
529,200.00
2 754,320.00
33,600.00
4 128 7424 291 51
,840.00
2,598,400.00 230,400.00
,200.00 - 3,171 4
,840.00116 1,044 132,240.00
365,400.00 520,840.00
23,200.00
PHP 24,437,
5 17 986 345,100.00 6,800.00
38,760.00 - 0 0 5
390,660.00 0 0 0 0 0 390,660.00
Assumptions

Social Responsibility

The HD Movie House will definitely have a good role in the community. It will
also bring satisfaction to customers, who are looking for a movie house that will
offer high definition of movies at a reasonable price. The business will help the
customers to maximize their time for other work and serve comfort to the
customers.

For the residents, the business will provide employment to the people.
Employees will be given salaries and benefits such as health insurance that will
afloat their standard from living. Employees are encouraged to participate in the
decision-making in order to have an open communication and to share ideas
between them and the owners. This is not only for the betterment of the business
but also on the relationship between the workers as capital providers.

For the owner, the business shall provide quarterly, semi-annually and annual
financial statements to determine the financial strength of the business and for
them to take necessary actions for the betterment of the business.

Employment and Income

The proposed business will benefit the economy through providing


employment to every individual especially within the resident covered by the study.
This will provide steady source of income that eventually improve the standards of
living of the employees that will affect the growth of the economy. This business will
support local workers. It will also promote the business and also contribute to the
competition which will lower the price of watching high definition movies in a homey
ambiance.

Demand

HD Movie House caters the demands of its customers by providing high


definition movies and good services that would satisfy them. The said business
trained its employees to become approachable and hospitable to build good
relationship with the customers. It will also keep this town marketable to attract
more investors that will help the community for its improvements, which, in turn
leads to money placed directly into the community.

Tax

As Filipino citizens, the business owners will pay their tax liabilities mandated
by the law. Tax will help the government generate funds for the improvement of
public service and government projects.

Market Aspect
The market share of HD Movie House is 38% which indicates that there is
good demand for the services it rendered. With this data, consumers were
willing to try this new laundry shop. They want to experience the services
rendered by the business. Thus, the innovators conclude that the business has a
strong and competitive position in the market which just shows that it is
feasible.

Technical Aspect
The HD Movie House business is located at J.C. Aquino Avenue beside
Banco de Oro, Butuan City. The total land area to be acquired amounts to more
or less 700 square meters. Land improvements include the construction of
ample parking area for customers and landscaping/gardening of surroundings. It
shall observe safety and waste management measures to ensure a well-
organized environment that is conducive for relaxation.

Management Aspect
The business HD Movie House has established goals or objectives that are
expected to be attained within affirmed future dates. The movie house is likely
to expand the business in other areas of the community to be able to reach
those areas which are somewhat far from the HD Movie House. Likewise spread-
out its efficient and quality service for other target market.

The management of HD Movie House is committed to rendering quality


services with activities that value its employees and customers. Empowerment
programs, benefits and incentive programs are designed in order to make them
feel satisfied as well as promote optimistic growth. There are procedures to be
followed from recruitment to selection and hiring. HD Movie House uses the
rational decision-making method. It operates 15 hours on a daily basis from
Monday to Sunday to fully accommodate customers and serve them with finest.
Wash and Learn vows to comply with all the necessary requirements for the
legality of its operation.
Financial Aspect
The projected balance sheet and income statement is feasible. The Return
on Investment is stable and increasing per year, providing great profit.

Socio-Economic Aspect
HD Movie House embodies corporate social responsibility through its
compliance with laws and regulations, taking responsibility and accountability
for actions, promoting the welfare of the community, its customers, nature and
its employees through free programs, sponsorship, tree-planting, income
generating projects, garbage picking, and donation/funding. HD Movie House
primarily aims to reduce the unemployment rate taking into consideration those
graduates from local universities in Butuan City and in Caraga Region and for
those who are undergraduate who have not been able to attain a degree course
to qualify for the job accordingly. Another aim of the proposed project is to hype
up the purchasing power of its customers to be ready for even more or
extensive range of products. It shall pay the right taxes to the city government
and promote/support its programs.