Lyceum-Northwestern University – Institute of Graduate and Professional Studies Page | ii

JUAN KAP: D’ KOPI HAWZ

A Feasibility Study

Presented to the Faculty of

Institute of Graduate and Professional Studies

Lyceum-Northwestern University

Dagupan City
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In Partial Fulfillment

of the Requirements for the Degree

Master in Business Administration

Anette Kenedy A. Siapno

June 6, 2020 Page | ii

CERTIFICATION AND APPROVAL SHEET

This feasibility study entitled “Juan Kap: D’ Kopi Hawz” has been prepared
and submitted by Anette Kenedy A. Siapno in partial fulfillment of the requirements
for the degree Master in Business Administration, has been examined and is
recommended for Final Oral Examination on June 6, 2020 .

GENOVEVA YALUNG REYES, CPA, Ph.D, FRIAcc

Adviser
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Approved on June 6, 2020 by the Panel of Examiners on Oral Examination with a

grade of ___%.

PEDRO F. SISON, CPA, DBA

CHAIRMAN

JOY C. GAMBOA,Ph.D. MARINA O. ABELLA, Ed.D.

MEMBER MEMBER

Accepted and approved in partial fulfillment of the requirements for the degree
Master in Business Administration.

MARINA O. ABELLA, Ed.D.

VP- Academic Affairs

Dean, IGPS

Comprehensive Exam:____% Date: June 6,2020 Page | iii

ACKNOWLEDGEMENT
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The researcher wishes to express her deepest appreciation and heartfelt thanks

and gratitude to the following:

Genoveva Y. Reyes, CPA, Ph.D., FRIAcc, her adviser, for giving her the full

support and motivation to conduct this study. For the challenging advice, understanding,

valuable suggestions, patience, time and the constructive criticisms that challenge her to

strive more.

Pedro F. Sison, CPA,DBA, chairman of the panelist, his criticisms, ideas, time

and assistance in the data analysis and corrections during the oral presentation of the

study; and to the

Members of the Panelists namely, Joy C. Gamboa, Ph.D. and Marina O.

Abella,Ed.D., for their support and valuable insights for the enhancement of this

feasibility study.

Nanay and Tatay, who give her inspiration, love and encouragement in her

journey in the graduate study, without them, this would not have been possible.

Classmates, for all the moments they have shared with the researcher through

good times and bad times. Page | iv

And most of all , The Almighty God, the Giver of Life, to whom all honor and

glory are offered for He has bestowed, grace and ability that enabled her to finish this

study.
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To all of them who have been with her every way, this research is dedicated.

-Jan Di
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Page | iv

DEDICATION

This earnest work is lovingly dedicated to

my beloved husband, children and

parents,siblings,nephews,niece,

best friends,and classmates.

Above all, to ALMIGHTY GOD,

The source of

LIFE!

-Jan Di
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Page | vi

Table of Contents

CERTIFICATION AND APPROVAL…………………….……………….………….. ii

ACKNOWLEDGMENT …………………………………………...…………….…… iii

DEDICATION …………………………………………………………………………. v

TABLE OF CONTENTS ………………………………………..……………….…… vi

LIST OF TABLES ………………………………………………….…………..……. ix

LIST OF FIGURES ……………………………………………………….……………. xi

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ABSTRACT ………………………………………………………………. xiii

Chapter 1 THE PROBLEM ……………………….………………………………. 1

Rationale ………………………………………………………………………… 1

Conceptual Framework ………………………………………………….. 4

Skeletal Framework …………………………………………………………. 7

Statement of the Problem ………………………………………………… 8

Methodology ……………………………………………………………………. 8

Significance of the Study ………………………………………………… 9

Scope of Delimitations ……………………………………………………. 10

Definition of Terms …………………………………………………………. 10

Chapter 2 MARKETING ASPECT …………………………………………… 12

Business Description …………………………………………...…………… 12

Business Name and Logo ………………………………………………… 13

Demand Analysis …………………………………………….……..……… 14

Supply Analysis ………………………………………….………………..….. 18

Demand-Supply Analysis ………………………………………….………. 20

Sales Forecast ………………………………………….………………..….. 21

Consumer Analysis ………………………………………….……………….. 26

Price Study………………………………………….………………..………. 31
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Suppliers’ Profile ………………………………………….……………….. 33 Page |vii

Marketing Mix…. ……………………………….……………………………. 34

Sales Promotion ………………………………………….……………….. 40

SWOT Analysis ……………………………….…………………… ………. 41

Chapter 3 TECHNICAL ASPECT ……………………………………………. 45

Operations Process ……………..………………………………………. 45

Food Preparation…….……………..………………………………………. 46

Expenditure Cycle ….……………………………………………………… 58

Revenue Cycle ….……………………………………………………… ….. 59

Gantt Chart ………………………………………………………………….. 60

Operation Timetable ……………………………………………………… 62

Facility Lay Out …………………………………………………………... 63

Initial Investment ……………………………………………………… 69

List of Equipment …………………………………………………………. 72

Waste Disposal …………………………………………………………… 77

Chapter 4 ORGANIZATION AND MANAGEMENT ASPECTS….. 78

Forms of Business Organization …………………………………………. 78

Organizational Chart ……………………………………………………… 79

Job Qualification and Specification……………………………………… 79

Job Description ………………………..……………………………………… 82

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Business Policies …………………………………………………………… 85

Chapter 5 FINANCIAL ASPECT ..………………… ………………..………. 93

Financial Assumption …………………………………….………………. 93

Sales Forecast …………………………………………………….…………. 94

Financial Statements ……………………………………………………… 95

Projected Income Statement ………………….………………………… 95

Projected Cash Flow …………….………………………………….. 96

Projected Balance Sheet ………………..…………………………….. 98

Financial Ratio Analysis …………….………………………………….... 98 Page |viii

Test of Liquidity ……………………………………….…………. 98

Test of Profitability ……………………………………….…….. 100

Return on Investment …………………………………………….. 102

Payback period ……………………………………..……. 103

Chapter 6 SOCIO-ECONOMIC ASPECT ………………………………… 104

Chapter 7 SUMMARY, CONCLUSION AND RECOMMENDATION… 106

Summary …………………………………….……………….…………….. 106

Conclusion …………………………………….……………….…………….. 107

Recommendation ……………………………………………………………. 108

BIBLIOGRAPHY ………………………………………..……………………….. 109

APPENDICES ………………………………………………………………………. 110

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Letter of Request to Interview …….………….…………… 111

Contract of Lease ………………………………………………… 112

Questionnaires ………………..………………………………... 116

SSS Contribution …………………………………………………… 120

Pag-Ibig Contribution …………………………………………………… 121

PhilHealth Premium Contribution ……………………………………… 121

Curriculum Vitae …………………………….……………………………….. 122

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List of Tables

Table 2.1: Historical Demand(Based on Observation)......………………… 15

Table 2.2: Historical Demand (Annually)……………………………………….. 16

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Table 2.3: Projected Demand …….…………………………………….…….. 17

Table 2.4: Historical Supply(Based on Observation)……………………… 18

Table 2.5 Historical Supply (Annually)……………………………………….. 19

Table 2.6: Project Supply of the Business……….. ………………………….. 19

Table 2.7: Demand-Supply Gap ……………………………………………….. 20

Table 2.8: Projected Annual Sales of

Juan Kap : D’ Kopi Hawz (1st Year) …………………………………….. 21

Table 2.9: : Projected Annual Sales of

Juan Kap : D’ Kopi Hawz (2nd Year) …………………………………….. 22

Table 2.10: : Projected Annual Sales of

Juan Kap : D’ Kopi Hawz (3rd Year)……………………………………. 23

Table 2.11 : Projected Annual Sales of

Juan Kap : D’ Kopi Hawz (4th Year)………………………………………… 24

Table 2.12 : Projected Annual Sales of

Juan Kap : D’ Kopi Hawz (5th Year)…………………………………….… 25

Table 2.13: Average Spending Capacity of the Customers……………….. 31

Table 3.1: Initial Investment….. ………………………………………………….… 69

Table 3.2: Business Registration Expense …………………………..…….. 70

Table 3.3: Advertising Expense ….. …………………………………………..… 70

Table 3.4: Rent Expense ……………………………………………….…………. 71

Table 3.5: Furniture and Fixture ……………………………………………….. 71

Table 3.6: Operational Equipment ……………………………………………….. 72

Table 3.7: Operational Supplies ……………………………………………….. 73

Table 3.8: Cleaning Supplies ….. ……………………………………………….. 74

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Table 3.9: Office Supplies ………………………………………………………. 75

Table 3.10: Other Equipment …….……………………………………………….. 75

Table 3.11: Utilities Expense …………………………………………………….. 76

Table 3.12: List of Supplies and Materials……………………………………. 76

Table 4.1: Employee Salaries ……………….…………………………………. 85

Table 4.2: Employee Schedule of Duty…….…………………………………. 85

Table 5.1: Sales Forecast ………………………………………………………… 94

Table 5.2: Depreciation Schedule…………. ………………………..……….. 95

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List of Figures

Figure 1.1: Skeletal Framework…………………………………………………………. 7

Figure 2.1: Business Logo ………..…………………………………………………… 13

Figure 2.2: Demographic Profile: Age ……………………………………………… 27

Figure 2.3: Demographic Profile: Occupation……………………………… 28

Figure 2.4: Behavioral Profile:

Frequency of Coffee Shop Visit of the Respondents ……….…… 29

Figure 2.5: Behavioral Profile:

Amount of Money Willing to Spend by the Target Customers .… 30

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Figure 2.6: Behavioral Profile: Satisfaction of the

Target Market on Existing Coffee Shops in Mapandan, Pangasinan. 32

Figure 2.7: Behavioral Profile: Willingness of

the Target Market to Try Corn Coffee Products ……………………….. 33

Figure 2.8: Menu……………………………………………………………………… 34

Figure 2.9: Vicinity Map……………………………………………………………… 36

Figure 2.10: Business Location..………………………………………………… 37

Figure 2.11: Sample Social Media Accounts for the

business……….…………………………………………………………………… 37

Figure 2.12: Sample Tarpaulin……………………………………………………… 39

Figure 2.13: Sample Flyer……………………………………………………………… 40

Figure 3.1: Operation Process…………………………………………………………... 45

Figure 3.2: Expenditure Cycle ………….………………………………………… 58

Figure 3.3: Revenue Cycle ………………..……………………………………. 59

Figure 3.4: Gantt Chart …………………………..……………………………... 60

Figure 3.5: 2D Presentation of the Proposed Floor

Plan……………………………………………………………………………… 63

Figure 3.6: 3D Presentation of the

Proposed Facility Lay-Out ( Top View)………………………………. 64

Figure 3.7: 3D Presentation of the

Proposed Facility Lay-Out ( Front View)………………………………. 65

Figure 3.8: 3D Presentation of the

Proposed Facility Lay-Out (Tilted View 1)…………………………. 66

Figure 3.9: 3D Presentation of the

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Proposed Facility Lay-Out (Tilted View 2)…………………………. 67

Figure 3.10: 3D Presentation of the

Proposed Facility Lay-Out………………..…..…………………………… 68

Figure 4.1: Organizational Chart …………………………………………………… 79

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ABSTRACT

TITLE : Juan Kap: D’ Kopi Hawz

AUTHOR : Anette Kenedy A. Siapno

Institute : Institute of Graduate and Professional Studies

Lyceum-Northwestern University, Dagupan City

DEGREE : Master in Business Administration

Date of Defense : May 2020

ADVISER : Genoveva Y. Reyes, CPA, Ph.D., FRIAcc

The study was conducted to determine the feasibility and viability of establishing
a coffee shop in Mapandan, Pangasinan. Juan Kap : D’ Kopi Hawz will be situated in
Space #4 Calimlim Commercial Complex, Poblacion,Mapandan, Pangasinan wherein
many people pass by. The business will offer hot and cold beverages using a corn coffee
which will be supplied by the Sumilao Corn Coffee. Juan Kap : D’ Kopi Hawz will be the
only coffee shop that will offer organic and healthy coffee to the target market of the
business.

The proponent found out that the business is very profitable in all aspect of the
business with a payback period of 1.19 years. It is a good indicator for the company to
encourage more investors to invest in the company to widen the target market, which
will increase sales and can increase potential suppliers of raw materials. With its
promising probability, it is highly-recommended by the proponent to invest in this kind
of business as it was found out that the business will be successful. The proponent also
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recommends to consider this study not only as a source of additional income through
supplying raw materials to the company but will serve as a solution to lift up the
unemployment status of the municipality or even the province.

Keywords: Feasibility study; Coffee Shop; Corn Coffee; Profitability