College of Business AdministrationSilliman University

A FEASIBILITY STUDY ON A PROPOSED GAMING CAFÉ

Bulaqueña, William Andrew G.

Calib, Mohamad Amjad M.

Distrito, Mike Daniel B.

Jamero, Jeryll Jones B.

Paglinawan, Retxed Fe L.

Rubin, Nympha Marie R.

Tiare, Virly Jane R.

Mrs. Romyr B. Dellona, CPA

Feasibility Study Adviser

September 30, 2015

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

I. HIGHLIGHTS OF THE PROJECTA. Name of the Firm – with a brief explanation as to why such name was

chosen c/o proponent B. Location of the Project – with a report of the reasons for selecting the

place c/o by William and proponent.C. History – a description of how and why the project was conceived c/o

proponent.D. Brief Description of the Business c/o MikeE. Nature of the Industry c/o Mike

(Note: Start with Gaming as the industry and its importance to the community or its attractiveness, then, discuss gaming in Philippines then go to gaming and its significance in Dumaguete City. Show statistics and numbers. This is like an RRL, c/o Mike)

F. Market Niche c/o Jeryll(Note: Discuss the Market Niche of this gaming industry which centers on Xbox. RRL type, c/o Jeryll)

G. Objectives of the Project c/o WilliamThe objective of the study is to determine the feasibility of the proposed gaming station. It includes the following:

Industry Analysiso Porter’s analysis of industry (e.g. customers, suppliers,

competitors, threats of new entrants, substitution)o Analysis of Dumaguete City’s competitors

Market Viabilityo Market Demando Market Preferenceso Ideal Prices, Location

Technical Feasibilityo Equipment necessary to begin operationso Lease improvements estimate and floor plano Business processeso Personnel

Financial Feasibilityo Initial Capitalizationo Financial Statement Assumptions

o Financial statements for 2015-2019 (inc. Balance Sheet, Income Statement, and Cash Flow Statement)

o Financial Ratios and analysisH. Type of OrganizationI. Project Proponent – the people behind the project: entrepreneurs and

investors c/o VjaneJ. Project Timetable and Status c/o William and Retxed

1. From Planning Stage to Start of Normal Operations2. Use of GANTT chart or PERT/CPM Diagram

II. PRESENTATION OF THE ESSENTIAL ELEMENTS OF THE PROJECT STUDYA. INDUSTRY ANALYSIS

Porter’s Analysis c/o Amjad & Nymphai. Threats of New Entrants

1. Government RegulationDiscuss about starting a new business requires meeting all state and local regulations. Needing a certificate of registration or incorporation

2. Economies of Scale3. Capital Requirements4. Product Differentiation5. Patents and Proprietary Knowledge6. Access to inputs7. Switching Costs

ii. Threats of Substitutesiii. Threats of Rivalry

1. Exit Barriers2. Fixed Costs/Value Added3. Product Differences4. Diversity of Rivals

iv. Bargaining Power of Consumersv. Bargaining Power of Suppliers

Analysis of Competitors in Dumaguete CityB. MARKET FEASIBILITY

Market Description Market Demand Market Supply Demand and Supply Analysis Pricing Scheme Marketing Program

C. ORGANIZATION AND MANAGEMENT FEASIBILITY Form of Ownership Management

i. Pre-operating periodii. Operating period

D. TECHNICAL FEASIBILITY Equipment c/o Vjane

Examples (sample only):1. CCTV Camera2. Cash Register

1. CCTV Wireless Color Camera LYDW208F1Php 2,450 plus Php freight costProduct Features:

150-foot range (no obstacles) 2.450 GHz output frequency Built-in microphone

Full motion real time color video with no delay

Camera runs on 9-volt battery or AC adapter

Composite video connections on receiver2. Cash Register (Ebay.com.ph)

Royal Alpha 9500mlPhp 28,056Product Features:

5,000 price look ups 00 serial ports and 1 usb ports 5 Bill/6 Coin drawer compartment Weighs 24 pounds

Leasehold Improvements c/o Amjad (ask engineers about the estimated cost of the Leasehold Improvements)

Building (Still in question whether the cost or the rental fee shall be included)

Business Processes c/o Mike and Jerylli. Product or Serviceii. Service Proceduresiii. Personnel (Investigate the Personnel in Robinsons)

1. Cashier2. Operator3. Janitor?

Legal Requirements c/o William and Nympha Barangay Clearance Tax Clearance Environmental and Natural Resources Office City Planning and Development Office

Zoning Rate Schedule for Commercial, Industrial and Agro-Industrial Product

City Health Office City Engineer’s Office Department of Trade and Industry Bureau of Internal Revenue City Veterinary Office Bureau of Fire Protection

E. FINANCIAL FEASIBILITY Mode of Financing c/o proponent

i. Capitalization Requirementsii. Whether to Lease or to include partial cost of Building as

capital or the Leasehold Improvement only shall be included

iii. Leasehold Improvementsiv. Equipment (some)

Gadgets CCTV Cash Register Couch Air conditioner Total Capitalization

Assumptions c/o Williami. General Assumptionsii. Income Statement Assumption

1. Sales2. Cost of Goods Sold3. Purchases4. Wages Expense5. Rent Expense (still to clarify)6. Depreciation Expense7. Advertising Expense8. Utilities Expense9. Supplies Expense

iii. Balance Sheet Assumptions1. Cash2. Supplies3. Prepaid Rent (still to clarify)4. Equipment5. Leasehold Improvements6. Liabilities7. Owner’s Equity

Financial Statementsi. Balance Sheet

ii. Income Statementiii. Cash Flow Statement

Financial Statement Analysisi. Common-size Income Statements

1. Composition of Sales2. Operating Expenses

ii. Return on Assetsiii. Return on Equityiv. Profit Margin

F. SOCIAL AND ENVIRONMENTAL VIABILITY

III. RECOMMENDATIONS, CONCLUSIONS AND FUTURE PROSPECTSIV. APPENDICES

a. Master Budget Schedulesb. Financial Rations Computationsc. Survey Instruments c/o Vjaned. Survey Results and Findingse. Additional Graphs and Interpretationsf. Rates and Prices of the Gaming Business c/o proponent