LiBrew: A Feasibility Study

A Study

Presented to:

Mr. Felix D. Cena, CPA, Ph.D

Faculty, College of Business and Accountancy

University of Negros Occidental – Recoletos

In Partial Fulfillment of the Requirements of

Management Advisory Services

By:

Camalon, Keren Kezia A.

Desierdo, Almira A.

Lamaton, Philip Andrew S.

Somcio, Antonette B.

Tabujara, Leve Marie C.

September 2018
 APPROVAL SHEET

The project paper entitled “LiBrew: A Feasibility Study” presented by Keren Kezia

Camalon, Almira Desierdo, Philip Andrew Lamaton, Antonette Somcio, and Leve Marie

Tabujara, in partial fulfillment of the requirements for Management Advisory Services of the

University of Negros Occidental – Recoletos has been evaluated and approved by the panel of

evaluators.

PANEL OF EVALUATORS

Clarita T. Lacson, CPA, Ph.D Jelyn S. Gaspillo, Ph.D

Accountancy Department Chair Dean of College of Business and

Accountancy

Crestita J. Dayot, MBA Krysha G. Espeleta,CPA CBA

Faculty

Christian Moises L. Heradura

Our journey in our Feasibility Study was not easy but along the way, we are very blessed

and thankful for those who have helped, guided and supported us, encouraging us to keep on

going and to finish this project.

First, we would like to thank our Dear Father in Heaven who gives us all the strength that

we need each day. For all the wisdom, the knowledge and the understanding that He has

showered us with while making our Feasibility Study. The grace that we have received from

Him is ever sufficient and we are forever grateful.

To the Somcio family for allowing us to stay in their home and providing us a place to

eat, sleep, and rest our minds. We are beyond grateful for the food that they have prepared on

the table and for feeding our hungry stomachs.

To the Camalon family for allowing us to stay in their office and providing us a lot of

sumptuous meals. We are very much thankful for providing us a place to stay to do the project.

To our parents who have always been with us from the very beginning, cheering us and

motivating us to keep on going. We also thank them for support that we’ve been receiving, most

especially financial support.

To our friends who have helped us in this project and for the support that we’ve been

receiving. Even the smallest of things can create something big for us.

Enrique Sarmiento and Julienne Brigoli, we thank you for creating LiBrew’s layout,

floor plan, and logo.

Lacson, CPA, and Mr. Christian Moises Heradura, we are very thankful for all your willingness

to participate in our study and for the time that you have made for us. We are very grateful for

all the help and suggestions that you have given to us in order to make out project a better one.

Felix D. Cena, CPA, Ph.D, our adviser, for helping, mentoring and guiding us with our

Feasibility Study. We are thankful for the support and the patience that you’ve put through in

this project.

Most of all, we would like to thank each one of us in this group for all the time and effort

that we’ve put through. Despite our busy schedule, the challenges that we have faced, we still

made it. Without each of our efforts we wouldn’t have accomplished this project.
 TABLE OF CONTENTS

Executive Summary

CHAPTER 1: Introduction

Background of the Study 1

Vision 2

Mission 3

Company Goals and Objectives 3

Project Site 4

CHAPTER 2: Management Aspect

Form of Business Organization 5

Organizational Structure 6

Job Descriptions and Specifications 7

Management and Personnel Policies 17

CHAPTER 3: Technical Aspect

Location 31

Layout Design 32

Daily Flow of Business Activities

Business Proper Phase 38

Post-Closing Phase 40

Purchasing and Inventory Flow 41

Consignment Inventory Flow for Cakes 43

Service Delivery 50

Café Services 45

Study Center Services / Co-Working Space 45

Discussion Room Services 45

Book Ordering Services 46

Sanitation 46

Impact of Technology 47

Gantt Chart 49

CHAPTER 4: Marketing Aspect

Industry Analysis 50

Target Market Analysis 51

Demand Analysis 52
Marketing Strategy 64

Competitor’s Profile 65

Business Matrix 66

Competitive Advantage 67

Marketing Objectives 68

Market Analysis 68

4 P’s of Marketing 69

Economic Environment 71

CHAPTER 5: Financial Aspect

Project Cost 72

Sources of Funds 73

Financial Assumptions 74

Statement of Comprehensive Income 77

Statement of Financial Position 78

Statement of Changes in Equity 80

Statement of Cash Flows 83

Notes to Financial Statements 83

Investment Analysis 92

Schedules 97

CHAPTER 6: Socio-Economic and Environmental Aspect

Social Desirability 117

Economic Implication 119

Environmental Contribution 120

UNO-R Core Values Integration 120

CHAPTER 7: Conclusion and Recommendation

Conclusions 122

Recommendations 124

APPENDICES 126

Appendix 1 – Articles of Partnership

Appendix II – Survey Forms

Appendix III – Services and Equipment

Appendix IV – Business Permits and Requirements

Exhibit 1.1. Vicinity Map

Exhibit 1.2. Satellite View of Vicinity Map

Exhibit 2. Organizational Structure

Exhibit 3.1. Interior Perspective of LiBrew

Exhibit 3.2. Interior Perspective of LiBrew - Café Area

Exhibit 3.3. Interior Perspective of LiBrew - Front Desk

Exhibit 3.4. Floor Plan of LiBrew

Exhibit 3.5. Mezzanine Plan of LiBrew

Exhibit 3.6. Operations Flow

Exhibit 3.7. Business Process Flow

Exhibit 3.8. Purchasing and Inventory Flow

Exhibit 3.9. Consignment Inventory Flow

Exhibit 3.10. Gantt Chart

Figure 4.1. Gender of Respondents

Figure 4.2. Age Bracket of Respondents

Figure 4.3. Preferred Place of Study

Figure 4.4. Time Allotment for Studying

Figure 4.5. Time Preference for Studying

Figure 4.6. How Often The Respondents Visit The Shop Per Week

Figure 4.7. What Kind of Books The Respondents Are Interested In Seeing

Figure 4.8. Amount the Respondents Are Willing To Spend

Figure 4.9. What Are The Qualities That The Respondents Value The Most When
Looking For A Place To Study?

Figure 4.10. What Respondents Usually Do In A Café

Figure 4.11. Preferred Beverages

Figure 4.12. Preferred Food

Figure 4.13.A. The Important Qualities In Choosing A Café

Figure 4.13.B. The Important Qualities In Choosing A Café

Figure 4.14. What Kind Of Books Are The Respondents Interested In Buying?

Figure 4.15. What Are The Qualities That The Respondents Value The Most When
Choosing To Avail Of Book Ordering Services?
 Executive Summary

LiBrew is a business establishment that offers a co-working space, cafe services and book

ordering services and an ambiance designed to enable customers to focus, think creatively and

feel at peace with life. This venture aims to provide the people of Bacolod a sanctuary to work

and relax in, in order to escape the chaos and noise that surround the city.

LiBrew not only dedicates itself to providing quality services, it also strives to impart on its

customers the importance of education, creative thinking and learning to relax and enjoy life

from time to time.

The business is operated as a partnership, composed of five (5) partners, where four out of

the five partners function as capitalist partner with the other one serving as the General Manager.

LiBrew is open 6 days a week and divided into two floors with the first floor being open

twenty-four hours a day and the second floor being open sixteen hours a day, wherein employees

are shifted to ensure effective and efficient operations. Reasonable compensation and benefits

are given to the employees based on their job position. Employees are also trained and guided on

how to serve customers with utmost care.

Before the business’ formation, surveys and research were conducted to discover and

identify the target market as well as their preferred tastes on food. Likewise, the marketing mix,

as well as the opportunities and threats analysis were also analyzed and assessed.

Upon analysis through the use of relevant quantitative techniques, we can conclude that the

business is feasible. Initial investment can be recovered within two years along with profits

recognized annually. At the end of the five-year projection, the business has sufficient assets

available for reinvestment opportunities such as expansion.

help not only to the customers but also to the community by conducting programs and activities

that supports the business’ corporate social responsibility and helps benefit the people.