Feasibility Study of Setting Up A Martials Arts Studio in Atimonan Quezon Cyrene Dela Cruz 2015

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QUEZONIAN EDUCATIONAL COLLEGE INC.

Business Administration Department 1

CHAPTER I
THE PROBLEM AND ITS SETTING

A. INTRODUCTION
Today, there are said to be as many Filipino fighting styles as there are islands in
the Philippines. Filipino martial arts refer to ancient and newer fighting methods devised
in the Philippines, the most popular of which is known as Arnis that is originated by the
Filipinos. Some of the other familiar Filipino martial arts practices are karate and
taekwondo.

The researcher believed that the Martial Arts is one of the most beneficial life
style activity we can do to improve the quality of our life, and to maintain that quality for
the rest of our life. Martial arts are also a sport for a lifetime. A lot of sports young people
play in high school are over after high school days, except for a few selected
athletes. When they are out of high school they are through playing volleyball, basketball,
football, baseball, and some other sports unlike Martial Arts which can be done for a
lifetime.

The proposed studio of martial arts is planned to be located at the town of


Atimonan, Quezon. According to the Survey of Population conducted by the Atimonan
Rural Health Unit, the town has a total population of 12, 097 from Zone I, Zone II, Zone
III and Zone IV of the Poblacion and 13, 111 from the Barangay of Angeles, Caridad
Ibaba and Tagbakin.

Based on the web, Atimonan is the second largest municipality in District IV,
Province of Quezon. It consists of 42 barangays. Since most of Atimonanin’s are health
conscious, the researcher sees an opportunity in establishing martial arts studio. Aside
from these reasons the researcher is interested on how things are done inside the martial
arts studio. Also there is no existing academy that offers a variety of services that is why
the researcher wants to pursue the study.

Martial arts may help develop sportsmanship and through systematic practice in
martial arts a person’s physical fitness may be boosted as the whole body is exercised.
Training also has benefits for mental health, contributing to self-esteem, self-control,
emotional and spiritual well-being.
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B. SWOT ANALYSIS

Strengths

- It will offer new services that the competitor doesn’t have.

- The proposed martial arts studio will focus on community awareness by teaching
self-defense for all ages.

- It will focus on child development and discipline in society.

- It will focus on continued education for adults and groups of interest.

- The proposed martial arts studio has an ability to teach all ages about different
types of martial arts and to explore the abilities of learning them.

- Martial arts business has family friendly environment and is great for the whole
family.

- The proposed martial arts studio will provide counselling to individual who have
been previously attacked.

Weaknesses

- Martial arts isn’t a basic need.

- There are high costs associated with personal service.

Opportunities

- The tournaments or competitions are hosted by the facility.

- There is an absence of some martial arts service in the area.

Threats

- The target customers will just exercise at home instead of going to martial arts
studio.

- It is a threat if there’s an entry of new competitors.

- The changes of regulations can impact the business.


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C. STATEMENT OF THE PROBLEM

The study aims to discuss the Feasibility Study of Setting up A Martial Arts Studio in
Atimonan, Quezon. Specifically the researcher wanted to determine the following aspects
of the business feasibility study:

 The market profile and design the appropriate marketing plan

 The technical and operational requirement needed in setting up the proposed


school of martial arts

 The appropriate business structure and the required manpower resources


needed for the proposed business

 The capital requirements and the profitability of the business

 The social or community contribution of the proposed school of martial arts

D. SIGNIFICANCE OF THE STUDY

This study will help the following persons:

 To the businessmen/ entrepreneurs seeking for the underlying reasons the way
things are done in school of martial arts, this will give valuable business
information to those who want to engage in this kind of venture for it illustrates
specific procedures on how to open up a school for martial arts

 To the future researchers, this study will give them an idea or pattern on how to
conduct or prepare a similar research topic

 To BSBA students, this feasibility study will enrich their knowledge about the
proposed business

 To the readers, this study will provide them skills and thoughts about martial
arts

 To the researcher, this undertaking will allow her to learn the different aspects
of business and to support her intention of setting up this kind of business in the
future
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E. SCOPE AND DELIMITATION OF THE STUDY

The proposed martial arts studio is dedicated to help everybody become the best
that they can truly be. This may be a place to exercise and improve one’s ability to
focus through hard work and commitment to become a stronger person, physically
and most important of all mentally. The training methods of the proposed
business will get everyone fit and will be accepting whether teens, 20’s, 30’s, 40’s
or even 50’s.A total of 100 respondents are randomly selected for the study from the
Barangay Poblacion, Zones I, II, III, IV, Barangay Angeles, Barangay Caridad Ibaba and
Barangay Tagbakin, Atimonan, Quezon.

Number of
Target Market Respondents
Brgy. Zone I Poblacion 15
Brgy. Zone II Poblacion 14
Brgy. Zone III Poblacion 7
Brgy. Zone IV Poblacion 12
Brgy. Angeles 9
Brgy. Caridad Ibaba 21
Brgy. Tagbakin 22
Total 100

The scope of the study will be at the town of Atimonan, Quezon specifically C.O.
Reyes corner Dona Aurora St. Brgy. Zone I Poblacion.
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F. CONCEPTUAL FRAMEWORK

INPUT PROCESS OUTPUT

Assessment of
– Market profile Marketing Plan
(Age, Sex, Needs, Wants)

Assessment of
- Equipment and Technical and
process needed Feasibility Operational Plan
(Materials and Location) Study
Of
Setting Up
A
Martial
Assessment of
Arts
- Appropriate
Studio
business structure Organization Manpower
In
and manpower Plan
Atimonan,
resources
Quezon
(Manpower resources needed)

Assessment of
- Capital requirements Financial Plan
and profitability
analysis

Assessment of
- social community Social or Community
contribution of the Contribution
proposed business

Figure 1 Research Paradigm of Feasibility Study of Setting up A Martial Arts Studio in


Atimonan, Quezon. The Research Paradigm 1 demonstrates how the input and process
present the business ventures as its output process.
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G. DEFINITION OF TERMS 1, 2

The researcher defined and illustrated some of the terms used in this study to
better understand the proposed martial arts studio business.

Academy-is a specialized school, often one devoted to one subject or discipline. It is also
describe as the world of higher learning.

Arnis-the primary weapon is the rattan stick, called a


cane or baston, which varies in size, but is usually about
28 inches (71 cm) in length.1

Boxing- a combat sport in which two people engage in a


contest of strength, speed, reflexes, endurance, and will by
throwing punches with gloved hands against each other. 2

Judo- martial arts in which two opponents use


movement, balance, and leverage to gain advantage over
other. Judo, which means “gentle way” in Japanese,
emphasizes gaining an advantage by giving way to an
attacking force. It was adapted from a traditional
Japanese martial art known as jujutsu.

Karate-art of self-defense employing hand strikes and


kicks to disable or subdue an opponent. An attacker is
disabled by crippling kicks and punches. Emphasis is on
concentration of as much of the body's power as possible
at the point and instant of impact.

1
https://www.wikipedia.org/ retrieved on March 2, 2016
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Kickboxing- it is a main martial arts spectator sport


because of its extensive international television
coverage.

Kung Fu-it is a form of Chinese boxing that involves


karate-like kicks and jumps in a more acrobatic form,
with additional techniques not found in karate. It
employs punches, strikes, kicks, and some throws.

Martial Arts-are any of several arts of combat and self-defense that are widely practiced
as sport. There are armed and unarmed varieties, most based on traditional fighting
methods used in East Asia.

Martial Arts Gi- refers to a uniform worn in the practice of martial arts.

Physical Fitness-is an important part of life. It is an indicator which shows whether you
have the ability to perform and enjoy day to day physical activities with ease.

Taekwondo- is a martial art that combines combat and


self-defense techniques with sport and exercise.The
name comes from the Korean words tae (foot, or kick),
kwon (fist, or punch), and do(art or way of life) and
literally means “the art of hand and foot fighting.

Wushu-a modern exhibition and full-contact sport based


on traditional Chinese martial arts, created in the
People's Republic of China
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CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES

A. TRENDS IN THE INDUSTRY OF MARTIAL ARTS


A.1. Trends in Martial Arts in the United States of America 2
The 50’s
Martial arts in the US were spelled “JUDO”. Why? Because of Cold War and
thousands of soldiers was part of Strategic Air Command. Their job was to be Johnny
on the spot in case the darn Commie Russians tried to nuke the beloved United States
of America. The Government realized that this was a stressful mission and did not
want stressed out unbalanced people guarding the country. They realized that
physical fitness helps contribute to balanced and happy fighting men (and women!),
so they imported Judo and heavily encouraged its soldiers to train and compete. It is
from these roots that the USJA and the USJF (which are two of the three legitimate
National Judo Organizations in the US. The third was created as a joint project by the
first two to handle things pertaining to the Olympics) grew, first as military personal
only, then later as governing bodies for Judo everywhere in the US.

The 60′s
People started becoming interested in all things Asian. A few hippy types and a
lot of soldiers returning from duty in Japan came back with something no one had
ever seen before: Karate. Well they came back with a lot of other martial arts, but
since the only one that got press was Karate, a lot of different styles just called
themselves Karate. This included martial arts from China and Korea. This is what
they call pride in martial art. No McDojoing at all.

The 70′s

Some people had heard of “Martial arts” but now everyone had heard of Bruce
Lee. His movies had plots! The fighting looked like someone might be able to pull
some of it off in real life! People went nuts. No matter what martial arts school they
studied at, they would be assured that they would learn to do that Bruce Lee stuff.
Since, there still weren’t a lot of martial artists with true credential, so they had a lot

Source2: http://www.sagacombat.com/blog/trends-of-martial-arts/
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places opening and adapting titles and style names that really sounded more like they
had been stolen from one of Bruce Lee’s movies than anything else.

The 80′s

The Ninja Turtles are basically the Teenage Mutant Ninja Turtles. Everyone
watched those movies and decided they wanted to learn to be ninjas. And really who
can blame them? Suddenly every martial art school was teaching weapons.
Sometimes it was the weapons based in their respective martial art, but other times
you had karate schools teaching sword, and everyone else teaching nunchucks.

The 90′s

Well the Ninja thing stuck around for a while, but then things started to re-gear
into Mixed Martial Arts (MMA), or as they like call it, learning to fight Ultimate
Fighting Championship (UFC). Where do they train UFC? The awesome thing about
it was once again, most of the schools jumping on the band wagon had never fought
anything like this before. It’s pretty easy, teach what you normally teach and tag the
word MMA onto it. Most favourite is MMA Fitness! No cage, no bags, no contact,
but heck why not.

The present

Now there’s an Internet. Even if there is no school in town, people are aware that
there is an art called Brazilian JiuJitsu. A quick google search will tell the difference
between Shotokan Karate and Shaolin Kung Fu. There are really no secret
techniques; everyone can find step by step instruction to nearly anything online as
martial arts instructors rush to put their knowledge on YouTube for free. Don’t want
to do a combat sport? Check their website and watch videos of their classes’ people
can compare and get what they want.

A.2. Trends in Martial Arts in Indonesia3

Martial arts, the new trend in the fitness industry, were the hot topic at the fourth
Reebok Innovasia fitness convention at Manggala Wanabhakti Fitness expert Fred
Hoffman of France said during a media conference that martial arts entered the
fitness industry in the early 1990s.

Source3: http://www.accessmylibrary.com/article-1G1-61624274/martial-arts-trends-fitness.html
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Hoffman -- who was visiting Jakarta with colleagues Jannie Classen and Ruth
Croeser of South Africa and Lexi Williams of Australia -- said the combination of
fitness activities and martial arts was important for people's daily lives.
"By having the combined movements, they will be flexible, strong, have balance and
their minds will be focused. They will move and react quickly."

Also during the convention, Williams introduced a new program called step
rotation fitness, and Croeser and Classen gave aerobics demonstrations which were
inspired by African tribal movements.

Ruby Sjahbana, Reebok Indonesia division manager, said the convention was
helpful for local fitness instructors as it gave them the opportunity to catch up on new
fitness trends from around the world, including the incorporation of martial arts, yoga
and dance in fitness activities.

A.3. Trends in Martial Arts in Europe4


When we think of martial arts, we are general lead to think about Eastern styles
from Asia such as Karate, Tai Chi, Kung Fu or Tai Kwon Do. However taking the
term ‘martial art’ to refer to any regimented form of self-defence then there are many
European martial arts too that bears mentioning. At the same time for someone
moving to Europe or going there on holiday there are many European martial arts
classes that will teach all of the well-known styles just as anywhere else. European
martial arts classes have been very popular since Bruce Lee introduced martial arts
on screen to the majority of the Western world. Particularly popular European martial
arts classes include Karate (and in particular the style ‘Shotokan’), Judo, Tae Kwon
Do and to an extent Kung Fu. As such these styles constitute the majority of
European martial arts practiced regularly. Interestingly Karate and Judo are practiced
now more regularly than the traditional European martial arts that were developed in
European countries. Many of the European martial arts styles are actually unheard of
among many Europeans.

Source4: http://www.europeword.com/blog/europe/european-martial-arts/
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A.4. Trends in Martial Arts in the Philippines5


In the United States you will most frequently hear such arts described as Arnis,
Kali, or Escrima. While Mark Wiley’s book Filipino Martial Culture lists over
seventy distinct arts from this nation, (1) Filipino Martial arts (FMA) are most
famous for their stick and knife work. Yes, there are Filipino arts known for
spectacular kicking.
(Sikaran and Yaw Yan), and wrestling arts (of which Dumog is the most well-
known) but if you go to a local FMA school you are by far, the most likely, to find an
art with stick and knife work. The most common variations appear to be espada y
daga (sword and dagger), single stick, double stick, and single knife. The sticks are
typically between twenty and thirty inches long, depending upon the particular art.
FMA arts are typically known for their two-man flow drills as versus solitary forms.
For example in Remy Presas’s Modern Arnis the student are first taught how to
execute and defend against twelve angles of attack. Students then alternate executing
and defending against these strikes with another single stick as a way to learn these
techniques. Some schools and teachers such as the Dog Brothers teach stick work
using minimal protective equipment and full contact. Others use padded sticks and
much more protection. Generally stick work is more frequently taught then knife
work though it is sometimes pointed out that a machete or other chopping
instruments can be easily used in place of a stick. An exception to this is Sayoc kali
which appears to be exclusively a blade art.

B. PROFILE OF FOREIGN MARTIAL ARTS ENTREPRENEUR 6

Lloyd Irvin is one of that very small group of


entrepreneurs who have built multi-million dollar
businesses both offline and online.
He is also one of the few who devotes as much time to
helping others succeed in business as he does to building
his own.

His commitment to martial arts – he is a former Brazilian


LLOYD IRVIN
Jiu-Jitsu world champion – led to him setting up his own
martial arts school. However, he struggled to make any money at first and quickly
recognized the need to change his approach.

Source5: http://www.fmapulse.com/content/filipino-martial-arts-fma-growth-industry
6
: http://lloydirvin.org/
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Breaking the Mold


He broke the mold in martial arts by being one of the first to use direct marketing
strategies to attract new students.
Despite initial criticism from others, his marketing success allowed him to quickly build
one of the USA’s leading martial arts academies.
Marketing campaigns delivering a steady stream of new students have led to his academy
producing several world champions, UFC champions and a world champion kid’s team.
Creating Successful School Owners
In addition to building his own academy, he is passionate about showing other martial
arts school owners how to change the way they work to easily attract more students and
make more money.
His mastermind groups, coaching programs, live events and home study courses have
helped hundreds of martial arts school owners around the world. As a result, many have
turned their interest in martial arts from a virtual “hobby” into high successful businesses.
Million Dollar Days
Having mastered the techniques of direct marketing and internet marketing in building
his school, Lloyd took this knowledge into a range of other markets.
Initially seeing internet marketing as a way of adding a few thousand dollars a month to
his income, he realized the potential was much greater when his first online launch made
over six figures in one day.
He even did one product launch that did over one million dollars in a single day. He has
now built successful businesses in several niches.
His proven marketing strategies – backed by specialist teams he has built - enable him to
use technology and marketing expertise to dominate the key markets where he operates
and to enter new markets easily.
Keys to Success
As an enthusiastic fan of Napoleon Hill’s “Think and Grow Rich”, he attributes his
success to being willing to master specialized skills such as direct marketing, internet
marketing and copywriting.
He also believes in the importance of taking fast action and implementing what you learn
if you want to get results.
Lloyd believes especially strongly in the power of the mastermind principle and having
the right mentors. He feels it’s vital to surround yourself with people who share your
aspirations or who are already successful in fields where you want to get results.
Through combining a world champion mind-set with consistently applying proven
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marketing strategies, Lloyd Irvin continues to enjoy helping businesses and individuals
succeed.

Experience
- Owner at Emory Marketing Systems LLC
- Present | Maryland
Education
- Bowie State University
- Business Administration
Concentration: Marketing
Activities: Track, Football, Omega Psi Phi
Interests & Activities
- Marketing, Internet Marketing, Direct Response Marketing, Mixed Martial Arts,
Brazilian Jiu Jitsu, Martial Arts, Coaching, Consulting, Business Management

C. PROFILE OF FILIPINO MARTIAL ARTS ENTREPRENEUR 7

He is a life-long martial artist, a writer, a former financial executive


in corporate America, and an entrepreneur.

Professor Jay de Leon Maestro (Teacher) Jay de Leon has over 35


years of experience in the martial arts, both in the Philippines and

the United States. He currently owns and operates a school called


JAY DE LEON
Filipino Fighting Arts in Orange County, California, USA, teaching
Filipino martial arts (arnis, eskrima, kali) as the core style .In addition, Maestro de Leon
has either black belt or instructor ranking in other traditional martial arts systems
including shorin-ryu (Latino Gonzalez style, Phil.), Parker kenpo, Kodokan judo (Phil.),
Muay Thai kickboxing, JKA shotokan, JKD (jeetkune do), and jiu-jitsu. In addition,
Maestro de Leon has taught martial arts and self-defense to school and community
groups, such as the Filipino Coalition of San Jose, CA, law enforcement and security
officers, and corporate executives. He is currently a senior martial arts instructor for
Front Sight Gun Training Institute in Las Vegas Nevada, as well as an airline travel
marshal and certified instructor of the "America-in-Defense" program, which was created

Source7: http://www.filipinofightingartsintl.com/Filipino-Fighting-Arts/Certified-Instructors/jay-
deleon_bio.html
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by Bob Wall's World Black Belt, Inc. as a response to the Sept. 11 tragedy, and trains
flight attendants and other cabin crew members in self-defense.

He was born and raised in Manila, Philippines; he went to the prestigious Jesuit
schools of Ateneo de Manila in Loyola Heights, Quezon City for his grade school and
high school education. He graduated with two Bachelor Degrees in Accounting and in
Political Science from the De La Salle University in Manila, and passed the C.P.A. Board
exams in the Philippines soon after graduation.

After a short work stint in the Philippines as a junior executive for Mead
Johnson, Philippines (the American pharmaceutical giant), and as a road construction
executive in a family corporation in Cotabato, Mindanao, he immigrated to the United
States.

Currently, Jay de Leon is the Commissioner of North America for the


International Modern Arnis Federation of the Philippines (IMAFP), which is the largest
Remy Presas Modern Arnis organization with chapters worldwide. He is also Co-
founder and Chief Instructor for the United States for Filipino Fighting Arts Int’l, with
chapters worldwide, mostly in the Philippines, United States and the Middle East. He is
also the owner of Tipunan International, a martial arts media organization which
promotes martial arts seminars, training camps, entertainment events, and instruction.

Jay de Leon started his martial arts training as a child in the Philippines,
continuing through his early years in the United States. He has black belts or instructor
ranking in several traditional and modern martial arts styles and disciplines, including
shorin-ryu, Parker kenpo, Filipino Martial Arts (arnis, eskrima and kali), Mixed Martial
Arts, and others.

He is a serial entrepreneur and has launched, owned and managed several


successful businesses in the past, including ventures in real estate, entertainment, and the
martial arts and security business. He is currently involved in several development and
business projects in the Philippines.

Jay de Leon is a writer of note. Many of his articles on martial arts,


entertainment, history and politics have been published, mostly in online publications.
He considers himself a martial arts archivist than a historian. He has also written several
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e-books as well as countless articles published in his own websites as well as other
websites.

He divides his time between the United States and Philippines. He is engaged in
business, martial arts, politics, and volunteer work, and pursues many intellectual, social
and recreational activities that intrigue, interest and fascinate him.

D. MARKETING STRATEGY FOR A MARTIAL ARTS SCHOOL 8

D.1. Show and Tell

The first marketing initiative is to meet with the local School Administrators and
introduce it to the community. The "Show and Tell" plan is introduced and when
accepted lends the approach to meet the children in the classroom. The "Show and
Tell" is organized in different segments. The first time the instructor addresses the
children he/she will be in full Martial Art Uniform. Most children are thoroughly
impressed and fascinated as they enter the room. Upon asking them if they would
like to have a uniform and take Taekwondo, it immediately attracts their attention.
This is where the instructor immediately reaches out and begins to teach the students
the meaning of discipline.

D.2. Value Incentive Plan (V.I.P.) Program


Taking to the parking lots of the local shopping and strip malls dressed in full
uniform. Actively hand out flyers and business cards to all parents with children, or
any interested adult that approaches. They offer 30 days of free lessons, to get
the people in the door of the school. Through experience in exercising these
methods, six to eight out of the 10 people that enter will sign a contract for lessons.
As the students begin to enrol, Martial Arts School plans to participate in Martial
Arts" demonstrations at the local malls and grocery store location parking lots,
public parks, with the students participating in the demonstration.

D.3. Yellow Pages


The third marketing initiative is to advertise in the "Yellow Pages", local
newspaper, radio, websites and, as we become more profitable, on local television.

Source8:http://www.bplans.com/martial_arts_school_business_plan/strategy_and_implementation_summar
y_fc.cfm#.UfHI7qyJs3s
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CHAPTER III
METHODS OF RESEARCH AND PROCEDURE
A. METHOD OF RESEARCH USED
The study used the descriptive method of research to determine the Feasibility
Study of Setting up A Martial Arts Studio in Atimonan, Quezon. This method helped the
researcher to gather more information based on the data she will gather in order to have a
better understanding about the research.
In addition, the researcher undertook a feasibility study which covers marketing
feasibility, technical and operational feasibility, organizational and manpower feasibility,
and financial feasibility. The researcher also analyzed the contribution to the community
and the corporate social responsibility of the proposed martial arts studio business. The
researcher prepared a three-year sales and financial projection for the proposed business.

B. DEVELOPMENT OF RESEARCH INSTRUMENT/S AND METHODS OF


COLLECTING DATA
B.1. Method of Collecting Secondary Data
The researcher utilized these methods to gather secondary data:
B.1.1. Library research
The researcher seeks information from the library to get the necessary details
and information related to the thesis topic. She reviewed the thesis topic of Mr.
Galilee Garcia because it is related to her study.
B.1.2. E-library Research
This is a research program with the use of internet. The researcher browsed
from the internet to complete the content of the review of related literature and
study.
B.2. Method of Collecting Primary Data
The researcher also makes use of the primary data through the interview,
observation and questionnaire from an individual person.
B.2.1. Interview
Its objective is to determine the aspects of business regarding the market
strategies, operations, manpower as well as the financial with relevance to the
martial arts school. The researcher used the interview with the instructor of
Philippine Karatedo League in Atimonan, Quezon Mr. Mario Sherwin D. Diaz.
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The interview was conducted last January 13, 2014. The data gathered are used to
improve the study.
Please refer to Appendix A for the Interview Guide.
B.2.2. Observation
This aims to determine the behaviour of students and instructor inside and
outside of the martial arts practice, the types of training and practices offered and
how their whole building is properly laid-out. The researcher conducted the
observation in the same establishment last January 18, 2014.
Please refer to Appendix B for the Observation Guide.

B.2.3. Questionnaire
This aims to know the needs, feelings and attitude of the possible target
markets and also to know if the proposed business is possible to the researchers
target place through the responses of a large number of respondents.
The researcher used the stratified random sampling from Brgy. Zone I, Zone II,
Zone III, Zone IV, Angeles, Caridad Ibaba and Tagbakin Atimonan, Quezon.
Please refer to Appendix C for the Questionnaire.

SAMPLING DESIGN
The population of the study consisted of seven Barangays. The table
displayed the actual number of persons per Barangay. The number of respondents
will be chosen to get the sampling design; the researcher used the given formula.
 The size of study population in this study is composed of 25,208 from
Brgy. Zone I, Zone II, Zone III, Zone IV, Angeles, Caridad Ibaba and
Tagbakin Atimonan, Quezon.
Computation:
Formula
n= N/(1+Ne2)
Where:
n= Sample Respondents
N= Size of Study
e= Margin of Error
2
n= 25208/ 1 + (25208) (0.05)
n= 25208 / 1 + (25208) (0.0025)
n= 25208 / 1 + 63.2
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n= 25208 / 64.2
n= 393

The researcher limited her study to 100 respondents considering the amount of
time allocated for the study and to lessen the cost incurred in the study.

PERCENTAGE
SELECTED BARANGAYS POPULATION RESPONDENTS
DISTRIBUTION
Brgy. Zone I Poblacion 3708 15% 15
Brgy. Zone II Poblacion 3458 14% 14
Brgy. Zone III Poblacion 1786 7% 7
Brgy. Zone IV Poblacion 3145 12% 12
Brgy. Angeles 2258 9% 9
Brgy. CaridadIbaba 5186 21% 21
Brgy. Tagbakin 5667 22% 22
Total 25208 100% 100

Table 1 Percentages and Respondents Information by each of the Barangay Number of


Population over the Total Number of Population

C. STATISTICAL TREATMENT OF DATA


C.1. Percentage Distribution
Formula:
P= (n/N) × 100%
Where:
P= Percentage Distribution
n= number of responses
N= Number of Respondents
The researcher used the percentage distribution to determine the demographic
profile of the respondents as well as in assessing the competition and the reporting
days and time. To present the data, the researcher used the pie chart.

C.2. Frequency Distribution


The researcher used the frequency distribution to determine the services that the
respondents are looking for in a martial arts studio. To present the data, the
researcher used the bar graph.

C.3. Weighted Mean


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Formula:
WM= 5f+4f+3f+2f+1f
TF
Where:
WM= Weighted Mean
F= Frequency Responses
TF= Total Frequency

Table 2 : The scale below was used to interpret the total weighted mean.
Range Descriptive Analysis
4.20-4.99 Strongly Agree Most Preferred
3.40-4.19 Agree Preferred
2.60-3.39 Undecided Somewhat Preferred
1.80-2.59 Disagree Least Preferred
1.00-1.79 Strongly Disagree Not Preferred

The weighted mean is used in determining the attitudes and perception of the market
toward the proposed business.
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CHAPTER IV
ANALYSIS, PRESENTATION AND INTERPRETATION OF
DATA
This chapter presents the analysis and interpretation of information gathered by the
researcher from the respondents through survey, interview and observation. The data gathered
were tabulated and computed to get the percentage and weighted mean to rank the data from
the responses.

A. RESULTS OF MARKET SURVEY


A.1. Demographic Profile of the Respondents
A.1.1. Age Distribution of the Respondents
Table 1.1 Responses According to the Respondents Age Group
Age No. Of Percentage
Responses Distribution
Below 15 years old 17 17%
16-25 52 52%
26-35 14 14%
36-45 7 7%
More than 45 years old 10 10%
Total 100 100%
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Figure 1.1 Responses According to the Respondents Age Group

Table 1.1 and Figure 1.1 show that 52% of the respondents are 16-25 years
old, 17% of them are below 15 years old. There are 14 % from the age group
26-35, 10% are more than 45 years old and the remaining 7% belongs to 36-
45 years old. Therefore the potential markets for a martial arts business are
those who are 16-25 years old.

A.1.2. Gender Distribution of the Respondents

Table 1.2 Responses According to the Respondents Gender

Gender No. Of Responses Percentage Distribution


Male 50 50%
Female 50 50%
Total 100 100%

Figure 1.2 Responses According to the Respondents Gender

Table 1.2 and Figure 1.2 show that the respondents had an equal
distributions pertaining to gender.
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A.1.3. Civil Status Distribution of the Respondents

Table 1.3 Respondents Response According to their Civil Status

Civil Status No. Of Responses Percentage Distribution

Single 80 80%

Married 19 19%

Widow 1 1%

Total 100 100%

Figure 1.3 Responses According to the Respondents Civil Status


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Table 1.3 and Figure 1.3 show that 80% of the respondents are single, 19%
are married and only 1% is widow.

A.1.4. Occupation Distribution of the Respondents

Table 1.4 Responses According to the Respondents Occupation

Percentage
Occupation No. Of Responses Distribution
Student 64 64%
Farmer 1 1%
Fisherman 1 1%
Driver 1 1%
Laborer 2 2%
Nurse 0 0%
Doctor 0 0%
Teacher 4 4%
Office Worker 1 1%
Government Worker 4 4%
Vendor 2 2%
Others 20 20%
Total 100 100%

Figure 1.4 Responses According to the Respondents Occupation


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Table 1.4 and Figure 1.4 show that 64% of the respondents are students,
20% of them do not have works and some are housekeepers. 4% are
government workers and teachers. About 2% are both vendor and laborer.
Only 1% of them are farmer, fisherman, driver and office worker.

A.1.5. Monthly Family Income Distribution of the Respondents

Table 1.5 Responses According to the Respondents Monthly Family Income

Monthly Family No. Of Responses Percentage Distribution


Income
below Php4000 19 19%
Php4000-5999 20 20%
Php6000-7999 12 12%
Php8000-9999 11 11%
10000 and above 38 38%
Total 100 100%

Figure 1.5 Responses According to the Respondents Monthly Family Income


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Table 1.5 and Figure 1.5 show that 38% of the respondents have monthly
family income of Php10000 and above while 20% are up to Php4000-5999.
About 19% has an income of below Php4000, 12% are up to Php6000-7999
and the remaining 11% of them has Php8000-9999 family income per month.

A.2. Services in a Martial Arts Studio

Table 2.1 Services the Respondents look for in a Martial Arts Studio and How
Much they are willing to spend

No. of Percentage Amount per


SERVICES Rank
Responses Distribution service
Karate 56 26% 1 P300.00/month
Judo 12 6% 8.5 P300.00/month
tae kwon do 36 17% 2 P300.00/month
Kickboxing 20 9% 4 P300.00/month
Kung Fu 18 8.45% 5 P300.00/month
Arnis 25 12% 3 P300.00/month
Boxing 16 7.54% 7 P300.00/month
Wrestling 12 6% 8.5 P300.00/month
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Wushu 17 8.01% 6 P300.00/month


Note: The prices indicated above are not generally fixed. This only shows
the limit on how much the respondents would be willing to spend for the
service.

Figure 2.1 Services the Respondents look for in a Martial Arts Studio

Table 2.1 and Figure 2.1 show that most of the respondents look for Karate
lesson having the highest 56 response, followed by Tae Kwon Do with 36
response. There are 25 responses to Arnis, 20 to Kickboxing. Next on the rank
is Kung Fu with the response of 18, followed by Wushu of its 17 response. 16
of them want Boxing lesson and 12 responses to both Wrestling and Judo.

A.3. Attitude and Perception of the Market toward the Martial Arts
Studio

Table 3.1 Respondents Response Pertaining to their Attitude toward the Martial Arts
Studio

MARKET Descriptive
SA A U D SD WM Rank
ATTITUDE Analysis
1. I go to martial arts
studio to get fit. 31 32 33 34 35 4.93 SA 1
2. I go to martial arts
studio to exercise. 37 38 39 40 41 4.05 A 6
3. I go to martial arts
studio to learn the
most effective form of
self-defense. 49 50 51 52 53 4.31 SA 2
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4. I go to martial arts
studio to meet
qualified instructor. 34 35 36 37 38 3.88 A 8.5
5. I go to martial arts
studio to experience
the lesson. 36 37 38 39 40 4.12 A 5
6. I go to martial arts
studio to meet new
friends. 29 30 31 32 33 3.88 A 8.5
7. I go to martial arts
studio to defend
myself and loved
ones. 48 49 50 51 52 4.18 A 4
8. I go to martial arts
studioto increase
concentration and
focus. 37 38 39 40 41 3.96 A 7
9. I go to martial arts
studio to develop self-
confidence. 39 40 41 42 43 4.22 SA 3
10. I go to martial arts
studiowhen I have
nothing to do. 19 20 21 22 23 3.27 U 10

This table shows the market attitude toward going to a martial arts studio. The
respondents strongly agree to the following attributes:

 I go to martial arts studioto get fit. It has a weighted mean of 4.93, rank 1.

 I go to martial arts studio to learn the most effective form of self-defense. It


has a weighted mean of 4.31, rank 2.

 I go to martial arts studio to develop self-confidence. It has a weighted


mean of 4.22, rank 3.

They also agree to these following statements:

 I go to martial arts studio to defend myself and loved ones. The weighted
mean is 4.18, rank 4.

 I go to martial arts studioto experience the lesson. The weighted mean is


4.12, rank 5.
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 I go to martial arts studioto exercise. With the weighted mean of 4.05, rank
6.

 I go to martial arts studio to increase concentration and focus. It has a


weighted mean of 3.96, rank 7.

 I go to martial arts studio to meet new friends.

I go to martial arts studio to meet qualified instructor. Both have a


weighted mean of 3.88, rank 8.5.

The respondents are undecided to this attribute:

 I go to martial arts studio when I have nothing to do. It has a weighted


mean of 3.27, rank 10.

Table 3.2 Respondents Response to the Characteristic of the Services they look for a
Martial Arts Studio

CHARACTERISTIC Descriptive
MP P SP LP NP WM Rank
S OF SERVICES Analysis
1. Affordable tuition
fee 48 44 7 0 1 4.38 MP 3
2. With qualified
instructors 49 39 9 3 0 4.35 MP 5
3. Offering free
introductory class 43 41 13 2 1 4.23 MP 6
4. Gives free uniform 56 31 10 2 1 4.39 MP 2
5. Provides self-
defense seminar 44 34 15 6 1 4.14 P 8
6. Have actual martial
arts exercise 56 33 9 1 1 4.42 MP 1
7. Has variety of
martial arts practices 45 33 16 5 1 4.16 P 7
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8. Sponsor
competition 42 30 21 3 4 4.03 P 10
9. Gives high quality
of lecture 55 31 9 5 0 4.36 MP 4
10. Conducts private
lessons 45 28 19 4 4 4.06 P 9

This table shows the characteristics of the place that the market looks for in a
martial arts studio. The markets most preferred characteristics are:

 Have actual martial arts exercise. With a weighted mean of 4.42, rank 1.
 Gives free uniform. It has a weighted mean of 4.39, rank 2.
 Affordable tuition fee. The weighted mean is 4.38, rank 3.
 Gives high quality of lecture. The weighted mean is 4.36, rank 4.
 With qualified instructors. It has a weighted mean of 4.35, rank 5.
 Offering free introductory class. With a weighted mean of 4.23, rank 6.

They also prefer the following statements:


 Has variety of martial arts practices. With a weighted mean of 4.16, rank 7.
 Provides self-defense seminar. With a weighted mean of 4.14, rank 8.
 Conducts private lessons. It has a weighted mean of 4.06, rank 9.
 Sponsor competition. It has a weighted mean of 4.03, rank 10.

Table 3.3 Respondents Response to the Characteristics of the Place they look for a
Martial Arts Studio
CHARACTERISTICS Descriptive
MP P SP LP NP WM Rank
OF THE PLACE Analysis
1. Spacious 56 33 10 0 1 4.43 MP 3
2. With friendly staff 45 42 9 4 0 4.28 MP 7
3. Well-lighted 46 37 11 5 1 4.22 MP 8
4. Air-conditioned 35 29 18 10 8 3.73 P 10
5. Secured location 56 20 15 4 5 4.18 P 9
6. Has shower room 58 27 9 6 0 4.37 MP 4
7. Has lockers 57 24 13 4 2 4.33 MP 6
8. Has drinking
72 20 5 2 1 4.60 MP 1.5
station
9. With good
56 27 13 3 1 4.34 MP 5
ambiance
10. Clean and
74 18 3 4 1 4.60 MP 1.5
comfortable
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The table shows that the respondents most preferred these characteristics of
place in a martial arts studio:

Has drinking station. With a weighted mean of 4.60, rank 1.5.

Clean and comfortable. With a weighted mean also of 4.60, rank 1.5.

Spacious. It has a weighted mean of 4.43, rank 3.

The martial arts school must have shower room where it has a weighted
mean of 4.37, rank 4.

With good ambiance. The weighted mean is 4.34, rank 5.

The market also wants the school to have lockers. The weighted mean is
4.33, rank 6.

With friendly staff. It has a weighted mean of 4.28, rank 7.

 The characteristic that is well-lighted has a weighted mean of 4.22, rank 8.

They preferred also the following:

Secured location. The weighted mean is 4.18, rank 9.

Air-conditioned. It has a weighted mean of 3.73, rank 10.

A.4. Understanding the Competition

Table 4.1 Respondents Response on where do they go when they want to


have a Martial Arts Lesson

No. Of Percentage
Competitors
Responses Distribution
I call martial arts instructor 14 14%
College and Universities offering 27 27%
martial arts lesson
Philippine Karatedo League(PKL) 35 35%
Atimonan, Quezon
Hard Body Gym Lopez, Quezon 5 5%
Lucena City 14 14%
Others 5 5%
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Figure 4.1 Respondents Response on where do they go when they want to


have a Martial Arts Lesson

Table 4.1 and Figure 4.1 show that 35% of the respondents go to Philippine
Karatedo League (PKL) Atimonan, Quezon, 27 % of them go to College and
Universities offering martial arts lesson. About 14% goes to Lucena City
with the same percentage as to those who calls a martial arts instructor. There
are 5% respondents who are going to Hard Body Gym Lopez, Quezon. And
5% specifies their response to other places.

A.5. Willingness of the market to go to a New Martial Arts Studio

A.5.1. Respondents Response to their Willingness to go to a New Martial Arts


Studio

Table 5.1 Respondents Response to their Willingness to go to a New Martial


Arts Studio

Percentage
Willingness to go No. Of Responses
Distribution
Yes 30 30%
Maybe 55 55%
No 15 15%
Total 100 100%
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Figure 5.1Respondents Response to their Willingness to go to a New Martial


Arts Studio

Table 5.1 and Figure 5.1 show that 55% of the respondents are not sure if
they will go to a new martial arts studio while 30% of them are willing to go
to the proposed business. And the remaining 15% are not willing.

A.5.2. Respondents Response on how frequent they want to go to a New Martial


Arts Studio

Table 5.2 Respondents Response on How Frequent They Want to go to a


New Martial Arts Studio

Percentage
Frequency No. Of Responses
Distribution
Daily 8 8%
Weekly 59 59%
Monthly 15 15%
Yearly 4 4%
Whenever needed 14 14%
Total 100 100%
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Figure 5.2 Respondents Response on How Frequent They Want to go to a


New Martial Arts Studio

Table 5.2 and Figure 5.2 show that 59% of the respondents will go to the
proposed business weekly 15% will go monthly. About 14% of them will go
to a new martial arts studio whenever needed. There are 8% who wants to go
daily. And only 4% will go yearly.

A.5.3. Respondents Response on How Much Time They will Spend to a New
Martial Arts Studio

Table 5.3 Respondents Response on How Much Time They will Spend to a
New Martial Arts Studio

Percentage
Time No. of Responses
Distribution
less than 1 hour 28 28%
1-2 hours 42 42%
3-4 hours 25 25%
more than 4 hours 5 5%
Total 100 100%
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Figure 5.3 Respondents Response on How Much Time They will Spend to a
New Martial Arts Studio

Table 5.3 and Figure 5.3 show that 42% of the respondents want to spend 1-
2 hours in martial arts studio, 28% of them wants to take martial arts lesson
in less than 1 hour. There are 25% who are willing to spend time in a martial
arts studio for 3-4 hours. And 5% wants more than 4 hours.

A.5.4. Respondents Response to their Preferred Days of Going to a New


Martial Arts Studio

Table 5.4 Respondents Response to their Preferred Days of Going to a New


Martial Arts Studio

Percentage
Preferred Day No. of Responses
Distribution
Monday to Sunday 5 5%
Monday to Saturday 17 17%
Monday to Friday 13 13%
Saturday and Sunday 65 65%
Total 100 100%
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Figure 5.4 Respondents Response to their Preferred Days of Going to a New


Martial Arts Studio

Table 5.4 and Figure 5.4 show that most of the respondents’ preferred days
of practicing martial arts is every Saturdays and Sundays with the response
of 65%. 17% of them want to attend from Monday to Saturday. There are
13% of those who want to practice from Monday to Friday. And only 5%
prefer from Monday to Sunday.

A.5.5. Respondents Response to their Preferred School Hours

Table 5.5 Respondents Response to their Preferred School Hours

Percentage
Preferred Time No. of Responses
Distribution
7AM-9AM 27 27%
10AM - 12AM 12 12%
1PM - 3PM 21 21%
4PM - 6PM 24 24%
7PM - 9PM 16 16%
Total 100 100%

Figure 5.5 Respondents Response to their Preferred School Hours


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Table 5.5 and Figure 5.5 show that the respondents prefer to attend martial arts
classes from 7AM to 9AM with 27% while 24% of them want to attend from 4PM
to 6PM. There are 21% of the respondents who wants to attend at 1PM to 3PM.
About 16% prefers to go from 7PM to 9PM. And the remaining 12% will attend
from 10AM to 12AM.

B. RESULTS OF INTERVIEW WITH MARIO SHERWIN DIAZ, PRESIDENT OF


PHIL KARATEDO LEAGUE (PKL) LAST JANUARY 13, 2014

(Put your picture with the interviewee, picture of the establishment)

A. Personal Data

Name: Mario Sherwin D. Diaz

Address: Bonifacio St. corner C.O. Reyes St. Brgy. Zone II

Poblacion Atimonan, Quezon

Name of Establishment: Philippine Karatedo League (PKL)


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Date of Interview: January 13, 2014

B. Business Profile

B.1. Business Background

The owner with his strong desire in sports started to learn and study Karate
when he was in high school. After he has learned the different techniques, he
began to pass-on the knowledge in the year 1994. At first he only rents any
available space for his Karate skills but later on August 2013 he rented a
permanent place owned by his friend.

B.2. Market Aspects of the Business

His target markets are people from Atimonan, Quezon specifically in the
town. Any interested person who wants to learn the services offered can enrol
and enter the school. His present trainees are students from St. Louie Kids World
Center, Atimonan Central School (ACS), Our Lady of the Angels Academy
(OLAA), Leon Guinto Memorial College (LGMC), Atimonan National
Comprehensive High School (ANCHS) and some Atimonanins who are college
students in Lucban, Quezon.

The school offers Karate and aerobic dance but the schools focus is Karate
and most students are enrolled in it. PKL markets their service through
tarpaulins.

B.3. Operational and Technical Aspects of the Business

The school operating days are every Saturdays and Sundays. In the
morning is 9:00 to 11:00 while afternoon session is at 2:00 to 4:00. The morning
session is for children from five to twelve years old and afternoon sessions are
for trainees which are thirteen years old and above.

According to Mr. Diaz, sometimes there is a change in schedule depending


on the availability of the trainees. He said that scheduling is the most common
problem of his business operation because some trainees were not always able to
attend the practice for the reason of their schooling specially those who are in
tertiary level. To solve the problem the instructor sets and calls for a new
schedule. Another problem is when during training, the trainees were having a
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misunderstanding after every competition because if they lose, they always think
that they have been cheated. And to prevent this case, the rules and regulations
are then clearly explained.

B.4. Manpower and Organizational Aspects of the Business

The business legal structure is sole proprietorship. No one is employed in


his business except him as an instructor but his wife is there for assistance in his
every training. They themselves do the cleaning of the whole area.

Some of the rules and regulations in his business are as follows:

 Safety first.

 Trainees must be in proper attire. If there are new comers they are allowed
to wear any comfortable clothes.

 Before the training starts it is important that they do bow to those who are
higher in position or higher in rank.

 During training the students are not allowed to talk to other trainees unless
the instructor is talking to them.

 Playing with other trainees while at training is prohibited.

 Without any important reason the students are not allowed to absent.

 Self-defense should not be use at the public places unless needed.

 During Karate competition the rule “block before punch” is done because
if the first move is punch it means that the first player started the fight and
not the opponent.

B.5. Financial Aspects of the Business

The business has an estimated starting capital of Php8600.00. The


interviewee said that his most important capital in his martial arts school was his
knowledge in it. The average income per month is an estimated Php6000.00.

The operating expenses is Php1800.00, it is for the rental expense and


electric bills.
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B.6. Future Direction of the Business

Mr. Diaz wanted to have a newly graduate of black belt martial arts that he
can employ in his martial arts business so that the studio will have another
instructor and he thinks that having black belt martial arts graduates will help in
attracting the market of his martial arts studio. If that happen his martial arts
business will have more trainees in the future.

B.7. Advice to Entrepreneurs

Mr. Diaz advised that if the researcher will set up martial arts business, she
must assure that the instructors are qualified and she must always have to
remember the rule “safety first” for it is very important.

C. RESULTS OF OBSERVATION

 Behaviour of trainees inside the Martial Arts Studio


Attendance
FOR GIRLS
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The trainees before the training starts change their clothes in the dressing room.
As a part of preparation, girls tie their hair. After their attendance, they were called for
blockings; they bow to those who rank higher than them especially to the instructor.
The position/ranking from lowest to highest is (white belt, yellow, orange, blue,
brown, and black belt).

To see their movements, they are blocked alternately in front of the mirror. They
also make excuses while at training if they will go to the comfort room or other
matter. Drinking water is done during break time and dismissal.

 Behaviour of Trainer inside the Martial Arts Studio

The trainer before he starts checks the attendance. He ask the students for prayer
and warm up before the actual training. He gives break time after the first one hour of
the two hours session. He is very much focused at the trainees’ movements and facial
expression.

Types of training/practice offered

Philippine Karatedo League (PKL) offers Karate and aerobic dance. The trainees
engage in Karate are mostly five to twenty years old. In aerobic dance, most students
are twenty years old and above and most are married.

 Building Lay-outs

DRINKING AREA CABINET OF EQUIPMENTS

COMFORT

ROOM L
A
R
G
E

M
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DRESSING
ROOM

-GIRLS

DRESSING
ROOM

-BOYS Entrance

Figure 6.1 Building Lay-out of Philippine Karatedo League (PKL) Atimonan, Quezon

 Equipments Used

The equipments used in their martial arts studio are the following:

1. kicking pad

2. focus mitt
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3. punching bag

4. karate floor mats

 Processes in a Martial Arts School


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Figure 6.2 Processes of the People in a Martial Arts Studio

ENTRANCE

6 2

CHANGING CHANGING
OF CLOTHES OF CLOTHES
PROCESS OF
THE PEOPLE
IN A MARTIAL
ARTS STUDIO

5 3

DRINK ATTENDANCE
WATER
4

PRAYER AND
WARM UP

This figure show the process of the people in entering a martial arts studio, first step
is signing and checking of attendance. Second, is doing such prayer and warm up and
third is to drink water. After the training is done they change their clothes again. The
process is repeated every time they were attending the lesson.

CHAPTER V
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MARKET FEASIBILITY
A. INDUSTRY DESCRIPTION AND COMPETITIVENESS

Martial arts is similar to having a life coach. It teaches us how to live by


embracing our spirituality. It improves our confidence by strengthening our minds. It
builds a useful and effective body by training each and every one of our lives. “What
you think, you become and what you do, you are”. It is proven that martial arts
contribute to individual well-being.

The researcher decides to study this kind of business in Atimonan, Quezon


because the people in the target market need to have concern for their body and most
especially for their health. The researcher limited her study to 100 respondents from
seven Barangays using the stratified random sampling to gather data within a
reasonable amount of time.

The proposed business will be located in the town of Atimonan, Quezon. Today,
martial arts business in Atimonan is in its growth stage. It is a significant industry.
Hundreds of millions of people worldwide practice some form of martial art. The
nature of industry of martial arts in the town is stable because there is only one
existing competitor.

The major competitor in the said town is the Philippine Karatedo League (PKL)
owned and managed by the instructor itself Mr. Mario Sherwin Diaz. The
establishment is located near of the town center that is less crowded to avoid
destruction to the trainees. They intend to attract the market through the use of
tarpaulins and offering a free training. The proposed business will compete directly
against them by offering the top services and putting the top characteristics of
services and place that the market looks for in a martial arts studio base on the
survey. Through this offers, the researcher expects that this kind of business will be
patronized by the target market.

B. ACCESS TO MARKET OUTLETS AND CHANNELS OF DISTRIBUTION

The potential customers of the proposed business are residents in the town of
Atimonan. Based on the conducted survey of the researcher they are mostly students
and are 25 years old and below. The new martial arts school will be using flyers,
tarpaulins, radio advertisement at Radyo Natin Atimonan, social networking sites and
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will tie up with schools on Physical Education subject to attract the market. The
school itself will serve as a channel of distribution.

C. ACCESS TO SUPPLY

The proposed martial arts studio will source its supply from these local suppliers:

 Electricity - QUEZELCO Atimonan, Quezon

 Water - Water District and Water Station Atimonan, Quezon

 Telephone - GTSI Atimonan, Quezon

 Equipment - Lucena City or if non-available in Manila

D. GOVERNMENT REGULATION AFFECTING THE BUSINESS

Martial arts have played a crucial role in the introduction of safety rules because
they oversee martial arts in similar way. The government registry cost of the
business will affect the entry to the martial arts industry.

There are government requirement in setting up this kind of business and the
proposed martial arts studio will need the following business permits:

 Occupancy Permit (Engineering Office of Municipio)

 Barangay Permit (Zone I)

 Mayors Permit

 Sanitary Permit

 BIR

 Tax clearance

 Business Plate

 Sticker Certificate Fee

 Fire Safety Permit

 Garbage Fee
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E. PROPOSED MARKETING PROGRAM

The proposed target markets are residents in the town of Atimonan Barangays
Zone I, Zone II, Zone III, Zone IV and the three nearby Barangays Angeles, Caridad
Ibaba and Tagbakin specifically the students’ ages 25 years old and below.

The proposed martial arts studio will offer different types of services such as
Karate, Tae Kwon Do, Arnis and Kickboxing. It will hire qualified instructors,
conduct an actual martial arts exercise and will offer free introductory class in the
first two days of attending the practice for a high quality of lecture. The proposed
services are in affordable tuition fee. A training fee of Php300.00 per month will be
favorable to the customers with two hours practice in every two days of a week
which is Saturdays and Sundays.

The establishment will be clean and comfortable, has drinking station, spacious,
has shower room andwith good ambiance based on the market response from the
distributed survey. It will also have a locker room.

Sponsoring a free martial arts lesson and encouraging members to bring in


friends is an effective low cost promotional method. The new martial arts studio will
be using tarpaulins, radio advertisement at Radyo Natin Atimonan and the social
networking sites to attract the market. This will help the business reach the
youngsters, which is most likely to be the target clients. Likewise, flyers are another
advertising method. It includes some discount coupon or even free sessions. This
kind of business is needed to be located in a less crowded place to avoid distraction
to both the instructor and trainees while practicing martial arts. This proposed martial
arts school will be tactically situated in C.O. Reyes St. Corner Dona Aurora St. Brgy.
Zone I Poblacion Atimonan, Quezon.

F. MARKETING POTENTIAL AND PROJECTED SALES

The target market of the proposed business is people in selected Barangays from
the town of Atimonan and the three nearby Barangays namely Brgy. Angeles,
Caridad Ibaba and Tagbakin. The target market’s total population is 25,208 (Source:
DILG Statistics from the Municipality of Atimonan, Quezon) in which 52% of it is
of ages from 16-25, while 17% ranges from below 15 years of age. As per family
income, 38% of the respondents earn Php10000.00 and above per month while those
with Php4000-5999, comprises the other 20%.
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 47

30% of the respondents are willing to go to the proposed business based on the
result of the survey. The researcher makes an assumption that 10% of the 30%
respondent will patronize the proposed martial arts school. The researcher assumed
that 10% is a reasonable estimate for it is the lower percentage share than Philippine
Karatedo League (PKL), which is the major competitor of the proposed business.

MARKET BASE

The market potential of the proposed business is estimated and calculated as


follows: 30% × 25208 × 10%, which is equivalent to 756 number of population.

The seasonality of the business in every months of the year is stated below with
its reasons why.

Table 1.1 Seasonality of the Business and Reasons

Months of the Year Seasonality Reasons/ Remarks


January Lean Holiday season and resumption of classes

February Lean A month of school days and also students


are a week busy in their Foundation Week
March Average In the last week of the month, some
students are enjoying their vacation

April Peak This is a summer break and students


usually looks for activities to do during
May Peak summer
June Lean Resumption of classes
July Lean A month of school days
August Lean A month of school days
September Lean A month of school days
During this month, students have more
school activities and almost have one week
October Lean of semestral break and it is a not enough of
time to practice martial arts
Resumption of classes from semestral
November Lean break
Holiday season students spend more time
December Lean
with their family
QUEZONIAN EDUCATIONAL COLLEGE INC.
Business Administration Department 48

The researcher determines the number of market potential through multiplying the market
base with the estimated percentage of the business seasonality as shown below.

Table 1.2 Seasonality and Number of Potential Market

No. of Potential
Seasonality Market Base % of the Business
Market
Lean 756 15% 113
Average 756 30% 227
Peak 756 50% 378

Table 1.3 Projected Sales

No. of Equivalent Potential Unit Price Projected Sales


Services
Response % Market (in Php) (in Php)

JANUARY = Lean
Karate 56 41% 46 300.00 13,800.00
Taek wondo 36 26% 30 300.00 9,000.00
Arnis 25 18% 20 300.00 6,000.00
Kickboxing 20 15% 17 300.00 5,100.00
FEBRUARY = Lean
Karate 56 41% 46 300.00 13,800.00
tae kwon do 36 26% 30 300.00 9,000.00
Arnis 25 18% 20 300.00 6,000.00
Kickboxing 20 15% 17 300.00 5,100.00
MARCH = Average
Karate 56 41% 93 300.00 27,900.00
tae kwon do 36 26% 59 300.00 17,700.00
Arnis 25 18% 41 300.00 12,300.00
Kickboxing 20 15% 34 300.00 10,200.00
APRIL = Peak
Karate 56 41% 155 300.00 46,500.00
tae kwon do 36 26% 98 300.00 29,400.00
Arnis 25 18% 68 300.00 20,400.00
Kickboxing 20 15% 57 300.00 17,100.00
MAY = Peak
Karate 56 41% 155 300.00 46,500.00
tae kwon do 36 26% 98 300.00 29,400.00
Arnis 25 18% 68 300.00 20,400.00
Kickboxing 20 15% 57 300.00 17,100.00
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Business Administration Department 49

No. of Equivalent Potential Unit Price Projected Sales


Services
Response % Market (in Php) (in Php)
JUNE = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5,100.00
JULY = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5,100.00
AUGUST = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5,100.00
SEPTEMBER = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5,100.00
OCTOBER = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5,100.00
NOVEMBER = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5,100.00
DECEMBER = Lean
Karate 56 41% 46 300 13,800.00
tae kwon do 36 26% 30 300 9,000.00
Arnis 25 18% 20 300 6,000.00
Kickboxing 20 15% 17 300 5100
Total Estimated Revenue (Year 1) Php600,000.00
Total Estimated Revenue (Year 2) Php660,000.00
Total Estimated Revenue (Year 3) Php759,000.00
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Business Administration Department 50

The business sales for year 2 will increase by 10% from the sales in Year 1 due
to the awareness of the presence of the proposed martial arts studio.

In Year 3, the researcher assumes that the sales will further increase by 15% due
to the loyal customers that the entrepreneur will develop.
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Business Administration Department 51

CHAPTER VI
TECHNICAL AND OPERATIONAL FEASIBILITY

A. SERVICES DESCRIPTION

The proposed martial arts studio will offer the services with the average price of
Php300.00 per month. The services to offer are:

 Karate

 Tae Kwon Do

 Arnis

 Kickboxing

The proposed business will offer a free introductory class for two days. Based on
the survey, the target market of the proposed martial arts studio prefers to have the
following attributes:

 Has drinking station

 Clean and Comfortable

 Spacious

 Has shower room

 With good ambiance


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Business Administration Department 52

B. PLANT LOCATION

Figure 1: The Location Map of the Proposed Business

OUR LADY OF THE ATIMONAN CATHOLIC CHURCH MUNICIPIO


ANGELS ACADEMY

C
QUEZON ST. O
R
R I
CHURCH E
Z
Y
PLAZA E A
S L
TARGET PLACE

S S
T
DONA AURORA ST. T

ATIMONAN CENTRAL SCHOOL


HERA’S NEU ACME
HARDWARE ENTERPRISE

 The proposed martial arts studio will be located at C.O. Reyes corner Dona
Aurora St. Brgy. Zone I Poblacion Atimonan, Quezon.

 The location is appropriate because it is a less crowded place that will avoid
destruction to both trainees and instructor practicing martial arts. Also, it is
near the center of the Poblacion.

 The location of the proposed business is owned by Ms.Lally Uy and the


monthly rental for this location is Php3000.00.
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Business Administration Department 53

C. SERVICE DELIVERY PROCESS

Figure 2.1 Service Delivery Flowchart

CUSTOMER PRACTICE/TRAINING

ENTERS THE MARTIAL ARTS STUDIO CASHIER

ENTERTAINED BY THE CASHIER PAY FOR THE SERVICE/LOG IN

 The customers will enter the martial arts studio for inquiry or for attending the
training.

 They will pay for the service they want and those who are already students will
sign in the log book.

 The cashier, if the customers are paid, will allow the customer to acquire the
service.

Figure 2.2 Acquisition/Replenishment of Equipments Flowchart

OWNER/MANAGER MARTIAL ARTS STUDIO

CHECK THE EQUIPMENTS BRING TO THE STUDIO

GO TO LUCENA OR MANILA TO BUY EQUIPMENTS

The process shows the replenishment of the equipments used in the martial arts
studio when it is broken or damage.

 The manager/owner will check the equipments

 The manager/owner will go to Lucena to buy the equipments needed or if not


available, will go to Manila

 The manager/owner will then bring the equipments to the martial arts studio.
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D. PLANT SIZE AND LAYOUT

D.1. Floor Plan of the Proposed Business

Figure 3 Layout of the Proposed Martial Arts Studio

TRAINING AREA 1

TRAINING AREA 2

This shows the floor layout of the proposed martial arts studio. The layout
is based on the behavioural observation conducted by the researcher to both
trainees and instructor.

The size of the establishment is decided as 100 square meters to fit the
space needed in the operation.

D.2. School Workdays and Hours


The proposed business will be open from 7:00 AM to 6:00 PM every Saturdays
and Sundays. The researcher decided the stated time and days to be the regular
operation of the studio because based on the survey most of the target customers
prefer it.

The proposed martial arts studio will have the following schedule:
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Business Administration Department 55

TRAINING AREA 1

NO. OF
TIME SESSION SET TRAINER
STUDENTS
8AM-10AM Karate 16 1 instructor 1
10AM-12PM Karate 15 2 instructor 1
12PM-1PM LUNCHBREAK
1PM-3PM Karate 15 3 instructor 1
3PM-5PM Kickboxing 17 1 instructor 1

TRAINING AREA 2

NO. OF
TIME SESSION SET TRAINER
STUDENTS
8AM-10AM tae kwon do 15 1 instructor 2
10AM-12PM tae kwon do 15 2 instructor 2
12PM-1PM LUNCHBREAK
1PM-3PM Arnis 10 1 instructor 2
3PM-5PM Arnis 10 2 instructor 2

During average and peak seasons the proposed martial arts studio will be
operating from Monday to Friday to fit the number of students to the size of each
training area.

D.3. Estimated Renovation Cost

D.3.1. Cost of Materials

Table 1.1 Costs of Materials for Renovation

Unit of Unit Cost Total Cost


Materials Needed Quantity
Measure (in Php) (in Php)
CHB #4 Pieces 1500 10.00 15, 000.00
RSB 12mm Pieces 50 250.00 12, 500.00
RSB 10mm Pieces 15 175.00 2, 625.00
RSB 9mm Pieces 30 125.00 3, 750.00
tie wire Kilos 5 100.00 500.00
CNW #2 Kilos 3 80.00 240.00
CNW #3 Kilos 8 80.00 640.00
CNW #4 Kilos 13 80.00 1, 040.00
cement Bag 80 210.00 16, 800.00
sand cu.m 12 500.00 6, 000.00
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Unit of Unit Cost Total Cost


Materials Needed Quantity
Measure (in Php) (in Php)
gravel cu.m 6 800.00 4, 800.00
G.I. Cor 10ft Pieces 40 540.00 21, 600.00
umbrella nail #2 Kilos 10 100.00 1, 000.00
tiles 8x8 Pieces 420 30.00 12, 600.00
tiles10x8 Pieces 300 30.00 9, 000.00
tiles 16x16 Pieces 150 50.00 7, 500.00
sliding door 200cm Pieces 2 4500.00 9, 000.00
good lumber 2x5x12 Pieces 10 200.00 2, 000.00
good lumber 2x6x13 Pieces 30 240.00 7, 200.00
good lumber 2x3x12 Pieces 60 120.00 7, 200.00
ply board 3x4 Pieces 10 700.00 7, 000.00
Total Cost of Material For Renovation 147,995.00

This table illustrates the materials needed for the renovation of the proposed
martial arts studio as well as its cost. The researcher asked for the help of Mr.
Ernesto Laude, a mason carpenter to specify the materials needed for the
renovation.
Based on the quantity and unit cost of the materials needed, the renovation
has an estimated total cost of Php147, 995.00
D.3.2. Cost of Wiring

Table 1.2 Cost of Wiring for the Renovation

Materials Needed Unit of Quantity Unit Cost Total Cost


Measure (in Php) (in Php)
panel box Piece 1 138.00 138.00
stranded wire Meters 200 30.00 6, 000.00
junction box Pieces 6 13.00 78.00
pvc pipe #3/4 Piece 1 130.00 130.00
pvc pipe#1/2 Piece 1 90.00 90.00
entrance cap #3/4 Piece 1 39.00 39.00
inscrew insolator Piece 1 15.00 15.00
set plate 3 gang switch Pieces 2 178.00 356.00
set plate 2 gang switch Pieces 2 158.00 316.00
set plate 1 gang switch Pieces 5 138.00 690.00
receptable bulb Pieces 2 37.00 74.00
fluorescent lamp Pieces 8 95.00 760.00
contact fluorescent lamp Pieces 4 60.00 240.00
plastic clamp #1/2 Pieces 15 3.00 45.00
electrical tape Pieces 2 25.00 50.00
Total Cost of Wiring for Renovation 9, 021.00
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Business Administration Department 57

Table 1.2 shows the estimated quantity and amount of wirings for renovation. To
get the unit cost, the researcher canvassed at NEU ACME Enterprise. The estimated
total cost of wirings needed for renovation is Php9, 021.00.

D.3.3. Cost of Labor

Table 1.3 Cost of Labor for Renovation

No. of Days Daily Rate Cost of Labor


Labor Requirements Quantity
to Work (in Php) (in Php)
mason carpenter 2 30 400.00 24, 000.00
laborer 2 30 250.00 15, 000.00
electrician 1 3 500.00 1, 500.00
Total Cost of Labor for Renovation 40, 500.00

The table shows that renovation of the proposed business needs two mason
carpenter, two laborer and one electrician. The total cost of labor for renovation
is Php40, 500.00.

D.3.4. Total Cost of Renovation

Table 1.4 Total Cost of Renovation

Summary of Renovation Cost Amount (in Php)


Total Cost of Materials 147, 995.00
Total Cost of Wiring 9, 021.00
Total Cost of Labor 40, 500.00
Total Renovation Cost 197, 516.00

This table shows that the total renovation cost of the proposed martial arts
studio is Php197, 516.00 from materials, wirings and labor cost.

D.3.5. Depreciation Schedule of Renovation Cost over 3 Years

Table 1.5 Depreciation Schedule of Renovation Cost over 3 Years

DEPRECIATION SCHEDULE OF RENOVATION COST OVER 3 YEARS (in


Php)
Total Renovation Cost Year 1 Year 2 Year 3
197, 516.00 65, 838.67 65, 838.67 65, 838.67
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For three (3) years, the yearly depreciation expense for renovation cost is
Php65, 838.67. To make it consistent with the financial projection, the depreciation
schedule is within three years.

E. MACHINES, EQUIPMENTS AND FIXTURE

Table 2.1 Office Machines, Equipments and Fixtures

Machines, Equipments and Unit Cost Total Cost


Quantity
Fixtures (in Php) (in Php)
office desk 1 1, 500.00 1, 500.00
office chair 1 1, 000.00 1, 000.00
set of couch 1 5, 000.00 5, 000.00
log book 1 50.00 50.00
mini notebook 1 25.00 25.00
pen 2 70.00 140.00
wall clock 1 100.00 100.00
telephone 1 3, 500.00 3, 500.00
stand fan 1 1, 000.00 1, 000.00
Total Office Machines, Equipments and Fixtures 12, 315.00

Table 2.2 Martial Arts Training Machines, Equipments and Fixtures

Unit Cost Total Cost


Machines, Equipments and Fixtures Quantity
(in Php) (in Php)

mirror 150x120

8 400.00 3, 200.00

ceiling fan

4 500.00 2, 000.00

mats

32 200.00 6, 400.00

body armour

6 655.00 3, 930.00
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Total
Unit Cost
Machines, Equipments and Fixtures Quantity Cost
(in Php)
(in Php)
headgear
4 495.00 1, 980.00

hand pads (pair)


2 295.00 590.00

feet pads (pair)


2 295.00 590.00

shin guards (pair)

2 585.00 1, 170.00

smash board
2 1500.00 3, 000.00

target pad

2 1, 480.00 2, 960.00

open palm glove (pair)


2 395.00 790.00

dipped foam hood

2 495.00 990.00

groin guards
2 285.00 570.00

arnisheadguard
2 495.00 990.00
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Total
Unit Cost
Machines, Equipments and Fixtures Quantity Cost
(in Php)
(in Php)
arnis gloves (pair)
2 295.00 590.00

focus mitt
2 1, 500.00 3, 000.00

boxing gloves (pair)

2 395.00 790.00

punching bag
1 2, 000.00 2, 000.00

multi-kick and punch

1 9, 190.00 9, 190.00

Total Martial Arts Training Machines, Equipments and Fixtures 44, 730.00

Table 2.3 Total Cost of Machines, Equipments and Fixtures

Amount
Summary of Machines, Equipments and Fixtures
(in Php)
Office Machines, Equipments and Fixtures Cost 12, 315.00
Martial Arts Training Machines, Equipments and Fixtures Cost 44, 730.00
Total Cost of Machines, Equipments and Fixtures 57, 045.00

The table shows that the total cost of machines, equipments and fixtures needed
in the operation of the proposed martial arts studio is Php57, 045.00. It includes the
machines, equipments and fixtures used in the office of the owner as well as in the
training area.

Table 2.4 Depreciation Schedule of Machines, Equipments and Fixtures over 3 Years

DEPRECIATION OF MACHINES, EQUIPMENTS AND FIXTURES COST


OVER 3 YEARS (in Php)
Total Cost Year 1 Year 2 Year 3
57, 045.00 19, 015.00 19, 015.00 19, 015.00
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The table shows that the depreciation expense per year is Php19, 015.00 for
machines, equipments and fixtures used in the business operation.

F. SUMMARY OF OPERATING EXPENSES

Table 3 Summary of Operating Expenses

Monthly Operating Yearly Operating


Operating Expenses Expenses Expenses
(in Php) (in Php)
Rental Expense 3000.00 36, 000.00
Electricity 500.00 6, 000.00
Water 285.00 3, 420.00
Drinking Water 240.00 2, 880.00
Telephone and Internet Fees 1000.00 12, 000.00
Advertisements and Promotions 500.00 6, 000.00
Transportation Expense 41.66 500.00
Repair and Maintenance 500.00 6, 000.00
Miscellaneous Expense 200.00 2, 400.00
Total Operating Expenses 5, 725.00 75, 200.00

The table shows the operating expenses of the proposed martial arts studio. The
total operating expense is Php75, 200.00. The following are the assumptions to the
operating expense of the proposed business:

 Rental Expense

According to the owner of the chosen location, the monthly rental


expense of the proposed business is Php3, 000.00.

 Electricity

Since the proposed business will be using electricity during Saturdays


and Sundays, the electric bill is estimated as php500.00 per month.

 Water

The water to be used in the comfort room and shower room will be
sourced at Atimonan Water District. It will cost Php285.00 per month.
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Business Administration Department 62

 Drinking Water

The business operation of the proposed business will need drinking water
for the customer twice a week. The total cost for the drinking water is
Php240.00 per month.

 Telephone and Internet Fees

The fee for telephone and internet is based on GTSI system but the
researcher estimated it not higher than Php1, 000.00 per month.

 Advertisements and Promotions

The proposed business will expense for flyers, tarpaulins and radio
advertisement to promote the business. It will cost an estimated Php500.00
monthly.

 Transportation Expense

The estimated transportation expense per year is Php500.00. Since the


proposed business will replenish martial arts training equipment once a year.

 Repair and Maintenance

For repair and maintenance, an estimated Php6, 000.00 per year is enough to
supply and change the damaged equipments.

 Miscellaneous Expense

The estimated miscellaneous expense per month is Php200.00. It will be


used to buy cleaning materials for the establishment or maybe to the
unexpected guess.

G. WASTE DISPOSAL AND ENVIRONMENTAL CONSIDERATION

The proposed business venture will have the following arrangements in disposing
waste and somehow help the environment:

 The proposed business will have two trash cans separating biodegradable to
non-biodegradable waste.
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 To save energy, the electricity of the proposed business will be plugged out
or turned off if not in use.

 The water way of the proposed business will be properly organized and
connected to the canal.

 The proposed business will not always be using electric lights if sunlight is
enough to fill the area during day time.
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CHAPTER VII
MANPOWER AND ORGANIZATIONAL FEASIBILITY

A. BUSINESS LEGAL STRUCTURE

The proposed legal structure of the business is single proprietorship. Setting up


and administering a single proprietorship business is comparatively easy and
inexpensive. The researcher wants to own 100% of the business even if she will be
personally responsible for all debts and liabilities.

One of the advantages of having a single proprietorship business is tax


simplicity, the owner declare the business income on a personal income tax form
rather than having to file a separate tax form. Also, the owner is the one who runs the
business and no one could tell her what to do or how to do it.

A single proprietorship business needs some government permits, they are


determined as follows:

Table 1 Government Permits

Amount
Permits Frequency of Payment
(in Php)
Barangay Clearance (Zone I) 100.00 During start-up and annually renew
BIR Permit 1000.00 During start-up and annually renew
DTI Permit 500.00 During start-up and annually renew
Mayor's Permit 500.00 During start-up and annually renew
Sanitary Inspection Fee 350.00 During start-up and annually renew
Health Certificate 30.00 During start-up and annually renew
Tax Clearance 50.00 During start-up and annually renew
Certification Fee 50.00 During start-up and annually renew
Building Inspection Fee 120.00 During start-up and annually renew
Electrical Inspection Fee 200.00 During start-up and annually renew
Plumbing Inspection Fee 60.00 During start-up and annually renew
Business Plate 80.00 During start-up
Sticker 10.00 During start-up and annually renew
Garbage Fee 400.00 During start-up and annually renew
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B. DIMENSION OF ORGANIZATIONAL STRUCTURE

B.1. Job Design, Roles and Responsibilities

Table 2 Job Design, Roles and Responsibilities

General Roles and Qualification and Skill


Job Title Qty
Functions Responsibilities Requirements

 Supervises  College graduate in


business activities business
management
 Handles students
training fees and  Good
give receipts of communication
payment skills
Managing/
 Responsible for Manager  Hardworking 1
Cashiering other financial
aspect of the  Risk-taker
business
 Trustworthy
 Responsible for
replenishing
equipments needed
in the operation

 Shares martial arts  With specialization


knowledge in different martial
arts classes most
 Ensures that the especially karate,
trainees are tae kwon do, arnis
actively, seriously and kickboxing
and learning every
Training/ sessions Instructor  With job
Instructing (full time) experience or of
 Conducts actual without, at least 2
martial arts graduate of black
exercise belt martial arts
 Develops  Hardworking
sportsmanship
 In good health
condition

 Organizes  High school


facilities graduate or
Setting/ Helper undergraduate 1
Helping  Cleans the whole
area  Hardworking
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B.2. Organizational Structure

Figure 1 Organizational Structure of the Business

MANAGER/CASHIER

INSTRUCTOR 1 INSTRUCTOR 2 HELPER

This figure shows the organizational structure of the proposed martial arts
studio. It demonstrates that instructors and helper will report directly to the
manager/ cashier. It also illustrates the authority and decision-making process in
the proposed business.

C. MANPOWER RESOURCE SCHEDULING

C.1. Reporting Days

Table 3.1 Employees Reporting Days

Job Title Mon Tue Wed Thu Fri Sat Sun

Manager X X X X X
Instructor 1 X X X X X
Instructor 2 X X X X X
Helper X X X X X

Table 3.1 illustrates the reporting days of each employee in the studio. All of
them will be there every Saturday and Sunday. The colored boxes represent
their working days.
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C.1. Reporting Hours

Table 3.2 Employees Reporting Hours

AM PM
Job Title
7- 8- 9- 10- 11- 12- 1- 2- 3- 4- 5-
8 9 10 11 12 1 2 3 4 5 6
Manager B B B
Instructor 1 B B B
Instructor 2 B B B
Helper

The table illustrates the employees reporting hours represented by the


colored boxes. The unfilled boxes represent their rest and break.

D. SCHEDULE OF SALARIES AND BENEFITS

Table 4 Schedule of Salaries and Benefits

Monthly Basic Monthly Benefits Total Salaries


Manpower Resources Salary and Benefits
(in Php) SSS PhilHealth (in Php)
Manager/ Cashier 5500.00 100 100 5, 500.00
Instructor 1 6400.00 100 100 6, 400.00
Instructor 2 6400.00 100 100 6, 400.00
Helper 400.00 400.00
Total Monthly Expenses for Salaries and Benefits 18, 700.00
Annual Salaries and Benefits 224, 400.00

Table 4 illustrates the amount of salaries and benefits of the employees employed in
the proposed martial arts studio. The instructors will be paid Php100.00 per hour. The
monthly expense for salaries and benefits is Php18, 700.00 and the annual is
computed as Php224, 400.00

E. CORE VALUES OF THE PROPOSED BUSINESS

Some of the most significant principles that the researcher would like to instill in
the proposed business are:

 Respect

Martial arts are more than a way to attack someone or defend one’s self. It
teaches the consequences of actions. Even for kids whose brains are still
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Business Administration Department 68

growing, martial arts classes provides an excellent environment for them to learn
self-respect, respect for others and self-discipline. Students have to respect their
instructor, or they would not be able to learn from him or her. They have to
respect themselves in order to have the confidence to train properly.

 Honor

The researcher will preserve honourable relationship between students and


instructor. Honoring the values of a traditional martial artist is what will
essentially set apart a good fighter from a great warrior.

 Modesty

Students are expected to be humble about their accomplishments. Those who


flaunt their achievements may have physical power, but their achievements are
hollow, for they lack the spirit of martial arts. This means being free of vanity or
conceit. A student should not boast about merits or achievements.

 Self-control

This is important inside and outside the martial arts studio, whether
conducting oneself in free sparring or in one’s personal affairs. A loss of self-
control in free sparring can prove disastrous to both student and/or opponent. An
inability to live and work within one’s capability or sphere is also a lack of self-
control.

 Integrity

A personal choice, an uncompromising and predictably consistent


commitment to honor moral, ethical, spiritual and artistic values and principles.
One must be able to define right and wrong and have the conscience, if wrong, to
feel guilt.

 Sportsmanship

An aspiration that a sport or activity will be enjoyed for its own sake, with
proper consideration for fairness, ethics, respect and a sense of fellowship with
one’s competitors. A sore loser refers to one who does not take defeat well,
whereas a good sport means being a “good winner” as well as being a ‘good
loser’.
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F. HUMAN RESOURCES DEVELOPMENT PROGRAM

Human resource development is an overall programme of training and career


development for employees. It will assist the business in developing the knowledge
and skills of the employees in martial arts industry.

 For the Manager- The researcher will allow him/her to attend management or
leadership development training with regards to martial arts business. Also,
to participate in distance learning like internet training to learn Professional
Blogging and Internet Marketing for it will greatly help the business to
success.

 For the Employees- The business will give them uniform to use in every session
for free for them to feel their belongingness. Also, it will sponsor a travel or
observation tours to some martial arts event in Manila to improve their
productivity.

G. PROFILE OF THE BUSINESS PROPONENT

The business proponent is a type of person who cannot stop wondering what the
competition is up to. She is action oriented and future focused individual for she is
highly motivated to set herself apart from the competition. Adversity motivated her to
work hard.

The business proponent aims to provide health promoting and meaningful


exercise for both young and adults. She believes that martial arts is a lot more than
just kicking, punching, trapping and grappling. It does not only improve one’s
physical strength, but it also helps achieving harmony and balance between mind,
body and spirit.

As martial arts practitioners are increasing, particularly the youth, the researcher
sees her business as one of the martial arts studio producing hundred great fighters in
the province.
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CHAPTER VIII
FINANCIAL FEASIBILITY

A. ESTIMATED CAPITAL REQUIREMENTS

A.1. Pre-Operating Expenses

The proposed business venture will need the following pre-operating


expenses to set up the proposed martial arts studio.

Table 1.1Pre-Operating Expenses

Permits Amount (in Php)

Barangay Clearance (Zone I) 100.00


BIR Permit 1, 000.00
DTI Permit 500.00
Mayor's Permit 500.00
Sanitary Inspection Fee 350.00
Health Certificate 30.00
Tax Clearance 50.00
Certification Fee 50.00
Building Inspection Fee 120.00
Electrical Inspection Fee 200.00
Plumbing Inspection Fee 60.00
Business Plate 80.00
Sticker 10.00
Garbage Fee 360.00
Total 3, 410.00

A.2. Fixed Capital Requirements

The proposed martial arts studio will need the following fixed capital
investments:
Table 2.1Fixed Capital Requirements
Amount
Particulars Reference
(in Php)
Renovation Cost 197, 516.00 Chapter VI, Table 1.4, Page 56
Machines, Equipments and
Fixtures 57, 045.00 Chapter VI, Table 2.3, Page 57
Total 254, 561.00
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The following are the depreciation expenses over three years for the
required fixed capital investment:

Table 2.2 Depreciation Schedule of Fixed Capital Requirements

Total Fixed Capital Year 1 Year 2 Year 3


Requirements
254, 561.00 84,853.67 84,853.67 84,853.67

The operating asset at the beginning of each year is shown below:


Operating Asset at the Operating Asset at the Operating Asset at the
Beginning of Year 1 Beginning of Year 2 Beginning of Year 3
254, 561.00 169, 707.33 84,853.67

A.3. Working Capital

The following working capital is needed for the proposed martial arts
studio:
Table 3Working Capital

Monthly Total Amount


Particulars Amount Needed for 6 References
Needed Months
Salaries and
Benefits 18, 700.00 112, 200.00 Chapter VII, Table 4, Page 64
Rental Expense 3,000.00 18, 000.00 Chapter VI, Table 3, Page 58
Electricity 500.00 3, 000.00 Chapter VI, Table 3, Page 58
Water 285.00 1, 710.00 Chapter VI, Table 3, Page 58
Drinking Water 240.00 1, 440.00 Chapter VI, Table 3, Page 58
Telephone and
Internet Fees 1, 000.00 6, 000.00 Chapter VI, Table 3, Page 58
Advertisements and
Promotions 500.00 3, 000.00 Chapter VI, Table 3, Page 58
Transportation
Expense 41.66 500.00 Chapter VI, Table 3, Page 58
Repair and
Maintenance 500.00 6, 000.00 Chapter VI, Table 3, Page 58
Miscellaneous 200.00 1, 200.00 Chapter VI, Table 3, Page 58
Total 153, 050.00
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A.4. Summary of Estimated Capital Requirements


Table 4.1 Summary of Estimated Capital Requirements
Particulars Total Amount (in Php)
Pre-Operating Expenses 3, 410.00
Fixed Capital Requirements 254, 561.00
Working Capital 153, 050.00
Total 411, 021.00

The proposed martial arts studio will need a capital of Php411, 021.00 to
start-up the business.

A.5. Source of Capital of the Proposed Business Venture

Table 5 Source of Capital of the Proposed Business Venture

Source of Fund Paid up Capital Percentage of Ownership


Cyrene S. de la Cruz 411, 021.00 100%

The estimated capital requirement of the proposed business venture is


Php411, 021.00. This capital requirement will be sourced from the owner itself.
The owner will not borrow the money from any other persons or financial
institutions to set up the martial arts studio because the proprietor can afford its
capital requirement.
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B. FINANCIAL PROJECTION

B.1. Year 1 to Year 3 Financial Projection

Table 6.1 Year 1 Financial Projection

Amount
Particulars References
(in Php)
Projected Revenue 600, 000.00 Chapter V, Table 6.3, Page 47
LESS:
Operating Expenses
Salaries and Benefits 224, 400.00 Chapter VII, Table 4, Page 66
Rental Expense 36, 000.00 Chapter VI, Table 3, Page 60
Electricity 6, 000.00 Chapter VI, Table 3, Page 60
Water 3, 420.00 Chapter VI, Table 3, Page 60
Drinking Water 2, 880.00 Chapter VI, Table 3, Page 60
Telephone and Internet Fees 12, 000.00 Chapter VI, Table 3, Page 60
Advertisements and Promotions 6, 000.00 Chapter VI, Table 3, Page 60
Transportation Expense 500.00 Chapter VI, Table 3, Page 60
Repair and Maintenance 6, 000.00 Chapter VI, Table 3, Page 60
Miscellaneous Expense 2, 400.00 Chapter VI, Table 3, Page 60
Pre-Operating Expenses 3, 410.00 Chapter VIII, Table 1.1, Page 69
Total Operating Expense 303, 010.00
Depreciation Expenses
Renovation Cost 65, 838.67 Chapter VI, Table1.5, Page 56
Machines, Equipments and Fixtures 19, 015.00 Chapter VI, Table 2.4, Page 59
Total Depreciation Expense 84, 853.67
Total Operating Expenses before Tax 387, 863.67
Income (Loss) before Tax 212, 136.33
Less: Tax (10%) Business Tax 21, 213.63
Income (Loss) after Tax 190, 922.70

 On the first year financial projection, the business will generate a profit of Php190,
922.70.

 Salaries of personnel comprised 74% of the total operating expenses, which is the
biggest contributor to the business yearly expenses.

 Rental expense of Php 36,000 per year, is the next biggest expense item of the
proposed Martial Arts Study, comprising 12% of the total expenses
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Table 6.2Year 2 Financial Projection

Amount
Particulars References
(in Php)
Projected Revenue 660,000.00 Chapter V, Table 6.3, Page 47
LESS:
Operating Expenses
Salaries and Benefits 224, 400.00 Chapter VII, Table 4, Page 66
Rental Expense 36, 000.00 Chapter VI, Table 3, Page 60
Electricity 6, 000.00 Chapter VI, Table 3, Page 60
Water 3, 420.00 Chapter VI, Table 3, Page 60
Drinking Water 2, 880.00 Chapter VI, Table 3, Page 60
Telephone and Internet Fees 12, 000.00 Chapter VI, Table 3, Page 60
Advertisements and Promotions 6, 000.00 Chapter VI, Table 3, Page 60
Transportation Expense 500.00 Chapter VI, Table 3, Page 60
Repair and Maintenance 6, 000.00 Chapter VI, Table 3, Page 60
Miscellaneous Expense 2, 400.00 Chapter VI, Table 3, Page 60
Pre-Operating Expenses 3, 410.00 Chapter VIII, Table 1.1, Page 69
Total Operating Expense 303, 010.00
Depreciation Expenses
Renovation Cost 65, 838.67 Chapter VI, Table1.5, Page 56
Machines, Equipments and Fixtures 19, 015.00 Chapter VI, Table 2.4, Page 59
Total Depreciation Expense 84, 853.67
Total Operating Expenses before Tax 387, 863.67
Income (Loss) before Tax 272, 136.33
Less: Tax (10%) Business Tax 27, 213.63
Income (Loss) after Tax 244, 922.70

 On Year 2 of the business operation, it will have Php244, 922.70 for total revenue.
This only shows business improvement from sales on Year 1.
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Table 6.3 Year 3 Financial Projection

Amount
Particulars References
(in Php)
Projected Revenue 759,000.00 Chapter V, Table 6.3, Page 47
LESS:
Operating Expenses
Salaries and Benefits 224, 400.00 Chapter VII, Table 4, Page 66
Rental Expense 36, 000.00 Chapter VI, Table 3, Page 60
Electricity 6, 000.00 Chapter VI, Table 3, Page 60
Water 3, 420.00 Chapter VI, Table 3, Page 60
Drinking Water 2, 880.00 Chapter VI, Table 3, Page 60
Telephone and Internet Fees 12, 000.00 Chapter VI, Table 3, Page 60
Advertisements and Promotions 6, 000.00 Chapter VI, Table 3, Page 60
Transportation Expense 500.00 Chapter VI, Table 3, Page 60
Repair and Maintenance 6, 000.00 Chapter VI, Table 3, Page 60
Miscellaneous Expense 2, 400.00 Chapter VI, Table 3, Page 60
Pre-Operating Expenses 3, 410.00 Chapter VIII, Table 1.1, Page 69
Total Operating Expense 303, 010.00
Depreciation Expenses
Renovation Cost 65, 838.67 Chapter VI, Table1.5, Page 56
Machines, Equipments and Fixtures 19, 015.00 Chapter VI, Table 2.4, Page 59
Total Depreciation Expense 84, 853.67
Total Operating Expenses before Tax 387, 863.67
Income (Loss) before Tax 371, 136.33
Less: Tax (10%) Business Tax 37, 113.63
Income (Loss) after Tax 334, 022.70

 On the third year of the operation, the business will generate total revenue of
Php334, 022.70 more than the sales on Year 2 due to the loyal customers of the
proposed business.

B.2. Analysis of the 3 Year Financial Projection


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 The proposed revenue on Year 1 is Php190, 922.70. It will increase 10% sales on
Year 2 that leads to have Php244, 922.70 due to the market awareness of the
presence of the martial arts studio. In year 3, the sales will further increase by 15%
because of the loyal customers that the entrepreneur will develop. It will generate
total revenue of Php334, 022.70.

 The researcher assumed that there will be no increase in the business operating cost
such as salaries and benefits, rental, electricity and other expenses.

 Salaries and benefits amounting to Php224, 400.00 yearly comprises the highest
74% of the total operating expenses before tax.

C. ANALYSIS OF FINANCIAL RATIOS

C.1. Turnover of Operating Assets

Table 7.1 Turnover of Operating Assets

Particular Year 1 Year 2 Year 3

Total Sales 600, 000.00 660, 000.00 759, 000.00


Total Operating Asset Net of
254, 561.00 169, 707.33 84, 853.67
Depreciation

Financial Ratio Year 1 Year 2 Year 3


Turnover of Operating Assets 2.36 3.89 8.94

 On the first year of the operation, the proposed martial arts studio will
generate Php2.36 sales for every Php1.00 investment.

 On Year 2, the proposed business will generate Php3.89 sales for every
Php1.00 investment. The increase in turnover of operating asset came from
the 10% in total revenue in Year 2.

 On Year 3, the business will generate Php8.94 sales for every Php1.00
remaining investment in the total operating assets. The increase in turnover
of operating assets came from the 15% increase in total revenue in the third
year operation of the proposed business.
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 For an overall analysis, the proposed business sales generation ability is very
good and is enough to cover the investment of the operating asset of the
business.

C.2. Sales to Equity Ratio

Table 7.2 Sales to Equity Ratio

Particular Year 1 Year 2 Year 3


Total Sales 600, 000.00 660, 000.00 759, 000.00
Equity 411, 021.00 411, 021.00 411, 021.00

Financial Ratio Year 1 Year 2 Year 3


Sales Equity Ratio 1.46 1.61 1.85

 On the first year of the operation, the proposed martial arts studio will
generate Php1.46 in sales for every Php1.00 investment in total equity.

 On Year 2, the proposed business will produce Php1.61 in sales for every
Php1.00 investment in equity. The increase in sales to equity ratio came from
the10% increase in total revenue in second year operation

 On the third year of the operation, it will generate Php1.85 in sales for every
Php1.00 investment in total equity. The increase came from the 15% on
sakes and revenue of the proposed business.

 The overall sales generation capability of the proposed martial arts studio is
very good from year one to year three. The investment in equity has been
fully covered by the business.

C.3. Return on Sales (Operating Income to Sales Ratio)

Table 7.3 Return on Sales

Particular Year 1 Year 2 Year 3


Total Sales 600, 000.00 660, 000.00 759, 000.00
Income before Tax 212, 136.33 272, 136.33 371, 136.33
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Financial Ratio Year 1 Year 2 Year 3


Return on Sales 0.35 0.41 0.49

 On the first year of the business operation, it will have Php0.35 income for
every Php1.00 sales.

 On the second year of the business operation, the operating income to sales
improved to Php0.41.

 On the third year, the proposed business will have a Php0.49 income for
every Php1.00 sales

 Overall, the income generates and improved from first year to third year of
the operation.

C.4. Return on Operating Assets (Operating Income to Operating Ratio)

Table 7.4 Return on Operating Assets

Particular Year 1 Year 2 Year 3


Income before Tax 212, 136.33 272, 136.33 371, 136.33
Total Operating Asset Net of
254, 561.00 169, 707.33 84, 853.67
Depreciation

Financial Ratio Year 1 Year 2 Year 3


Return on Operating Assets 0.83 1.60 4.37

 On Year 1 of the business operation, the return is Php0.83 for every Php1.00
investment in operating assets.

 On Year 1 of the business, the operating income is Php1.60 investment in


every Php1.00 investment in operating assets.

 On Year 3 of the business operation, the income is Php4.37 for every


Php1.00 net operating asset.

 Overall, the return on operating assets of the business is good because the
business generates an increase of an operating income per year.

C.5. Return on Equity (Operating Income to Equity Ratio)

Table 7.5 Return on Equity


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Particular Year 1 Year 2 Year 3


Income before Tax 212, 136.33 272, 136.33 371, 136.33
Total Equity 411, 021.00 411, 021.00 411, 021.00

Financial Ratio Year 1 Year 2 Year 3


Return on Equity 0.52 0.66 0.76

 On the first year, the proposed business can only yield an operating income
of Php0.52 for every Php1.00 on stockholders equity.

 On the second year, the business will yield an operating income of Php0.66
for every Php1.00 on stockholders equity.

 On the third year, the business will gain Php0.76 for every Php1.00 on
stockholders equity.

 Overall, the business shows a good potential of covering up the stockholders


equity investment in the business. It just shows that it is fine to put or invest
money on the business.

C.6. Analysis of Payback Period

Table 7.6 Analysis of Payback Period

Financial Value Year 1 Year 2 Year 3


Income (Loss) after Tax
190, 922.70 244, 922.70 334, 022.70
(Net Income after Tax)
Cumulative Profit after Tax
190, 922.70 435, 845.40 747, 218.11
(Retained Earnings)

The payback period of the proposed Martial Arts Studio in Atimonan,


Quezon is within two (2) years. The investor will have to wait two years before
the payout of the return on investment.
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CHAPTER IX
CONTRIBUTION TO COMMUNITY/ CORPORATE
SOCIAL RESPONSIBILITY

A. SOCIAL RESPOSIBILITY TO THE PUBLIC

A.1. Right to Safety

 The researcher will ensure instructor’s emphasis on technique and self-


control to limit the risk of injury.

 The researcher will provide headgears and body pads for sparring or for
activities with risk of falling.

 For the use of equipments, the researcher will ensure that safety gears are fit
properly and well maintained.

 Mats and floors in the training area will be guaranteed safe to play on.

 The whole area will be kept clean.

A.2. Right to be Informed

 Customers will be informed about the price of each service.

 The researcher will post all the services offered by the martial arts studio.

 Rules and regulations when in training will be posted in each training area.

 The researcher will provide a small notice board for reminders.

 The customers will be given freedom to ask questions pertaining to martial


arts and will answer those questions, if necessary.
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A.3. Right to Choose

 Customers may choose to enter or not the martial arts studio.

 They will be given freedom to choose what kind of service they want to
enrol.

 Trainees may choose to refuse joining the outside competitions.

A.4. Right to be Heard

 Customers will be given a chance to communicate their discontentment


pertaining to personnel behaviour and studio’s policies.

 The proposed business will be open to the customers’ suggestion, comment


and feedback. It will have a suggestion box for the personnel to act
immediately.

A.5. Privilege to be Involved

 The martial arts studio will work actively in the community through fund
raising. The researcher will keep back Php2.00 in every Php300.00 sale of
the business for local charity on health.

 The researcher chose to get involved in helping the community by


conducting Fun Run with the theme “Run for Health and Wellness”. The
researcher will get a sponsor in the local health organizations and will invite
health care members in Atimonan to promote a fit, balanced and productive
lifestyle.

 The proposed business will be holding seminars and will be taking action
through demonstrations to raise awareness on some important issues such as
psychological and physical health issues as well as issues on violence.
Sponsors will be the different business owners in Atimonan, Quezon. The
researcher will get its participants from different schools in Atimonan.

B. SOCIAL RESPONSIBILITY TO THE COMMUNITY

B.1. Employment and Proper Wages


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 The proposed business will give an extra job opportunity to those who have
knowledge teaching martial arts.

 The business owner will give her employees proper wages and benefits.

B.2. Education and Training

 The proposed business will provide funds to some special programs such as
seminars for self-defense.

 It will also provide training to the employees to help them enhance their
knowledge and skills.

B.3. Right Taxes to the Government

The proposed Martial Arts Studio with a legal structure of sole proprietorship
will accountably pay the right and exact tax to the government. It will pay 10%
tax on its gross income. The tax paid will contribute to the revenue of the Local
Government of Atimonan, which will be used for further development of the
municipality.

B.4. Community Development

 The proposed business will provide the community traditional values of


martial arts in a safe, clean and modern setting.

 It will also help in expanding the income of the barangay and the Local
Government of Atimonan.

B.5. Contribution to Protect and Preserve the Environment

The proposed business venture will have the following arrangements to


protect and preserve the environment:

 The researcher will put a plant hanging outside the windows and in the
main entrance of the establishment.

 During daytime, electric lights will be turned off when sunlight is enough
to fill the area for the purpose of saving the energy.

C. BUSINESS ETHICS AND PRACTICES


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The researcher would like to instill the following core values in the proposed
business:

 Community Involvement- Contributing to the community is a great


way to improve each student. Happier people in the community make
happier families, which leads to an overall improvement in the
community.

 Respect- the researcher believes that the instructors that respect his/her
students will be respected by the students too.

 Honor- For the employees, it is a matter of honor to do their duties

 Modesty- Employees and students must have a sense on what is proper,


fitting and acceptable character.

 Self-control- One must learn to control their temper, they must not injure
someone with their martial arts power unless it is for self-defense.

 Integrity- It is important to be open and honest because success goes


only to those who play its best.

 Sportsmanship- This is for students who are in competition, they must


know how to take defeat well.
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CHAPTER X
SUMMARY, CONCLUSION AND RECOMMENDATION

 The study used the descriptive method of research, this method help the
researcher to gather more information based on the data she will gather in order
to have a better understanding about the research.

 The researcher used the stratified random sampling to select randomly samples
from different sector of study population. She limited her study to 100
respondents considering the amount of time allocated for the study and to lessen
the cost incurred in the study

 For the research instruments, the researcher makes use of the secondary data such
as library and e-library research. Also, she makes use of the primary data through
interview, observation and questionnaire from an individual person.

A. DESCRIPTION OF THE BUSINESS VENTURE

 The proposed martial arts studio will offer different types of services such as
Karate, Tae Kwon Do, Arnis and Kickboxing. It will hire qualified instructors,
conduct an actual martial arts exercise and will offer free introductory class in the
first two days of attending the practice for a high quality of lecture. A training fee
is Php300.00 per month

 The establishment will be clean and comfortable, has drinking station, spacious,
has shower room and with good ambiance based on the market response from the
distributed survey. It will also have a locker room.
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B. MARKET FEASIBILITY

 The proposed target markets are residents in the town of Atimonan Barangays
Zone I, Zone II, Zone III, Zone IV and the three nearby Barangays Angeles,
Caridad Ibaba and Tagbakin specifically the students’ ages 25 years old and
below.

 The major competitor in the said town is the Philippine Karatedo League (PKL)
owned and managed by the instructor itself Mr. Mario Sherwin Diaz. They intend
to attract the market through the use of tarpaulins and offering a free training.

 The proposed martial arts studio will source its supply from these local suppliers:

 Electricity - QUEZELCO Atimonan, Quezon

 Water - Water District and Water Station Atimonan, Quezon

 Telephone - GTSI Atimonan, Quezon

 Equipments - Lucena City or if non-available in Manila

 The new martial arts school will be using flyers, tarpaulins, radio advertisement at
Radyo Natin Atimonan, social networking sites and will tie up with schools on
Physical Education subject to attract the market. The school itself will serve as a
channel of distribution.

 The estimated sales revenue on Year 1 is Php600, 000.00

 On the second year, the researcher assumes that it will increase its sales up to 10%
which is Php660, 000.00.

 In Year 3, the researcher assumes a 15% increase on sales which is Php759,


000.00 because there will be loyal customers.

C. TECHNICAL AND OPERATIONAL FEASIBILITY

 The proposed location is at C.O. Reyes corner Dona Aurora St. Brgy. Zone I
Poblacion Atimonan, Quezon. The location is appropriate because it is a less
crowded place that will avoid destruction to both trainees and instructor practicing
martial arts. Also, it is near the center of the Poblacion.

 The establishment consist of the training area and office area the size of the studio
has an area of 100 square meters. It will undergo renovation for 30 days, which
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will cost Php197, 516.00. For three (3) years, the yearly depreciation expense for
renovation cost is Php65, 838.67.

 The needed cost for machines, equipments and fixtures is Php57, 045.00 and the
depreciation expense per year is Php19, 015.00.

 The proposed business will be open from 7:00 AM to 6:00 PM every Saturdays
and Sundays.

D. MANPOWER AND ORGANIZATIONAL FEASIBILITY

 The proposed legal structure of the business is single proprietorship. The


researcher wants to own 100% of the business.

 The proposed business will need 1 manager, 2 instructors and 1 helper.

 The total salaries, SSS contributions and PhilHealth contributions of the


employees in the proposed business will cost Php18, 700.00 monthly and Php224,
400.00 annually.

 The management will allow the personnel to attend training and seminars with
regards to martial arts business and will give them uniform to use in every session
for free for them to feel their belongingness.

E. FINANCIAL FEASIBILITY

 The proposed martial arts studio will need a capital of Php411, 021.00 to start-up
the business. This capital requirement will be sourced from the owner itself.

 The proposed revenue on Year 1 is Php190, 922.70. It will increase 10% sales on
Year 2 that leads to have Php244, 922.70 due to the market awareness of the
presence of the martial arts studio. In year 3, the sales will further increase by 15%
because of the loyal customers that the entrepreneur will develop. It will generate
total revenue of Php334, 022.70.

 The payback period of the proposed Martial Arts Studio in Atimonan, Quezon is
within two (2) years. The investor will have to wait three years before the payout
of the return on investment.

F. CONTRIBUTION TO COMMUNITY/ CORPORATE SOCIAL


RESPONSIBILITY
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 The proposed business venture have a social responsibility to the community


which provide people right to safety, information, to choose, to be heard and the
privilege to be involved.

 It will also have the social responsibility to the community which includes the
employment and proper wages, education and training, taxes to the government,
community development and its contribution to protect and preserve the
environment.

 The researcher would instill the core values such as community involvement,
respect, honor, modesty, self-control, integrity and sportsmanship.

G. RECOMMENDATIONS

The Feasibility Study of Setting up A Martial Arts Studio in Atimonan, Quezon helps
the entrepreneurs to gain more knowledge on how to establish this kind of business.

Martial arts improve the ability to overcome physical or mental strain and to keep
going, while maintaining focus and attention. Based on the flow of study it is feasible to
set up a martial arts business in Atimonan, Quezon. For this reason, the author strongly
recommends to businessman and entrepreneurs to pursue setting up this business.

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