Chapter 1 Project Summary Introduction Computer shop business is one of the most in demand businesses here in Bulacan.

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 AC 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 to Government Office, and schools. 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 Objectives of the Project The AC Computer Shop looks forward to be the most competitive shop in Bocaue and nearby towns of Bulacan. The proponent dreams of making profit and staying long in the business. For operating and establishing AC COMPUTER SHOP, I am having some objectives.

1. To earn profit at less investments.

2. To satisfy our customers providing best quality service at effective price. 3. Providing the service at low cost by providing the best quality at affordable price. 4. To know a fair return on the capital invested by the owner.

Feasibility Criteria The following are the most important criteria by which almost every subject is being measured: 1. Raising Funds or Capital this is the number one need of a business man in putting up a business. Whether he will produce the money by his own pocket or he will have a business loan in a bank. 2. Recognize profit from the business the main reason of a person for going into business is profit. People tend to enter into this kind of business because of their expectation to earn money or have an income. 3. It helps the economic growth of the area this company will give a job opportunity to the resident of bulacan. 4. Enhance the availability of the company the company will become stable if it has the ability to compete to his competitor and ability to continue operations yet there is expected risks in a business. 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 promos 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.

quicker and more exciting when you and your friends are able to do battle with no lag and plenty of bonding for everyone. My friendly staff is ready to help with your computer needs. Guidelines of Business

All malicious sites are blocked.

Were 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 waiting area.

One person for one unit to maintain orderliness. 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 privacy purposes.

All furniture are fully furnished and labor included. 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 (logo size) 8.00 Photocopying (short) 0.75 (Long) 1.00 Scanning 10.00 CD burning (max. of 17 songs) 35.00 Other services: Pay phone (for every 3 min.) 5.00 Computer Repair (labor) 250.00 Factors Affecting the Market Factors that I consider while putting up my own Computer Shop:

Location picking a good spot is an advantage for me.

Competition most business minded people think of competition as a race to charge the lower prices in order to win the customers.

Software Licensing its really important to have an original operating system, because pirated OS can eventually damage the system.

Expected ROI investing money in a business is a risk in my case the well tabulated if financial statement is my major concern. 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 DSL Internet connection is available, it is recommended to use DSL 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 AC Computer Shop has three main strategies. The first strategy focuses on attracting novice Internet users, by providing a novice friendly environment, AC 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 AC 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 AC 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 AC 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

AC Computer Shops second strategy will be focused on attracting power Internet users. Power Internet users provide an important function. AC Computer Shop plans on attracting this type of customer by:

Providing the latest in computing technology.

Providing scanning and printing services.

Providing access to powerful software applications The large student and nearby neighborhood population will become an important part of the AC 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. AC 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 Bocaue as they do not have access to the internet at their living places. Market Growth The market for the services AC 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 AC 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. AC Computer Shop will target these groups with the use of fliers and tarpaulin.

2012 311,502 2013 345,600

Supply Supply in the Internet Services for the last five years: Table 2.1 Figure 2.1
Year Quantity Supply (in peso) 2004 21,120 2005 35,200 2006 41,400 2007 51,800 2008 107,770

As you can see there is 8.21 percent of supply in internet service in year 2004 and increase of 5.47 percent on the next year. In 2006 there is 16.09 percent of supply in internet service and increase of 5.05 percent in year 2007 and in the year 2008 theres a supply of 41.87 percent in internet services.

I will use the Arithmetic Straight Line method in projecting the supply for the next five years. Yc = a + Yi - 1 Yc = initial value Yn = final value Yi 1 = value for past years where: a = Yn Yc N-1 Computation: a = 107,770 21,120 = 21,663 5 1 2009 = 21,663 + 107,770= Php. 129,433.00 2010 = 21,663 +129,433 = Php. 151,096.00 2011 = 21,663 + 151,096= Php. 172,759.00 2012 = 21,663 + 172,759= Php. 194,422.00 2013 = 21,663 + 194,422= Php. 216,085.00

Projected Supply for five years: Table 2.2 Figure 2.2 Year Quantity Supplied (in peso) 2009 129,433 2010

151,096 2011 172,759 2012 194,422 2013 216,085 Demand and Supply Analysis The table and figure below will shows the projected demand and supply of AC Computer Shop for the next five years in percentage. Table 3
Year Percentage of Quantity Demand Percentage of Quantity Supplied 2009 15.08 14.98 2010 17.54 17.49 2011 20 20 2012 22.46 22.51 2013 24.92 25.02 100% 100%

Figure 3 The figure 3 shows the projected demand and supply of AC Computer Shop for the next five years. In year 2009 there is a 15.08% of demand on internet services, thats why AC Computer Shop needs a 14.98% to supply the demand. In 2010 there is 17.54% in demand and 17.49% in supply, while in 2011 it has a 20% both in demand and in supply. And in 2012 there is 22.46% in demand and 22.51% in supply. For the fifth year 2013 it has a 24.92% in demand and 25.02% of supply. In totality, every year AC Computer Shop will increase of 2.46% in demand and 2.51% in supply.