FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 1

A Study on Business Profitability of the Cren Top SnackHaus

For Future Expansion

A Business Research
Presented to the
Far Eastern University – FERN College

In Partial Fulfillment
Of the Requirements of the Degree on
Financial Management

By

BOBIS, John Romezel R.

BRILLANTES, Sophia Kyla D.
CALUB, Shane Abigail G.
MELARPIS, Michael I.
NITOR, Vanessa Eimee B.
TULANA, John David
FMG-22
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 2

EXECUTIVE SUMMARY

This section is limited to 100-150 words (approximately 12-15 lines), singly

spaced and must include at least four (4) keywords.

Keywords: Solar systems, universe, aliens, space

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 3

TABLE OF CONTENTS
Page

Executive Summary 1

UNIT I INTRODUCTION
Chapter 1 Background of the Study 5
Introduction 5
1.1 Rational of the Study 6
1.2 Purpose of the Study 6

Chapter 2 The Research Problem 7

2.1 Research Questions 7

2.2 Significance of the Study 7

2.3 Scope and Limitations 7

Chapter 3 Review of Related Literature 8

3.1 Theme 1 Review
8
3.2 Theme 2 Review 8

Chapter 4 Frameworks of the Study 10

4.1 Theoretical Framework 10
4.2 Conceptual Framework 10
4.3 Operational Framework 11
4.4 Operational Definition of Terms 12

UNIT II RESEARCH METHODOLOGY

Chapter 1 Research Design
Chapter 2 Schedule and Organization
Chapter 3 Data Analysis Plan

UNIT III FINDINGS, ANALYSIS, CONCLUSION & RECOMMENDATIONS

Bibliography

Appendices 33
Examples only!
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 4

Appendix I: Permit to Conduct the Interviews 37

Appendix II:Request for Pertinent Data 38
Appendix III:
Informed Consent for Research Participants 39
Appendix IV: Informed Consent for Research Participation
Recruited Concept Mapping Participants 40
Appendix V: Survey Questionnaires 41

Appendix VI: The Interview Protocol 44

Appendix VII: The Interview Protocol for Tutors/Reviewers 46
Appendix VIII: The Interview Protocol 47
Appendix IX: Timetable for Research 50
Appendix X: Budget Proposal 51

Curriculum Vitae 52
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 5

UNIT I

INTRODUCTION

CHAPTER I

Background of the Study

This chapter must include statements that strike curiosity among

the readers and make them read the rest of the thesis.

Introduction
Present an interesting scientific problem that the research

addresses or solves. Make clear why you need to do more research on the

problem identified. Provide sufficient background information to help the reader

understand the thesis better. Cite literature and studies that relate to the present

investigation preferably the most recent and relevant ones. Explain the coverage

of the thesis, identifying which will be included in the investigation and which will

not. The introduction in general will guide the reader what is expected to be

found in the thesis.

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 6

1.1 Rationale of the study

Reason of the research

1.2 Purpose or objectives of the study

Why you are doing the research?

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 7

CHAPTER 2

THE RESEARCH PROBLEM

Competition between the food business establishments in the

Philippines is a tough and an intense battle for the dominance in the Philippine

Food Industry. The performance of these diners, however, does not rest entirely

or merely on the concession of the similar product line and innovations each has

to offer. Since the trends in foodservices have emerged and developed from

changes in the socio-cultural environment in the Philippines, more Filipinos are

eating out daily and fast food service operations have been flourishing in

popularity. With this understanding of the viewpoint of foodservice quality, it is

helpful to increase revenues of campus dining operations as well as to attract

more students, including off-campus students. An analysis of the corresponding

financial statement through profitability ratios, financial Leverage and asset

management ratios will help the Cren Top SnackHaus broaden their

comprehension about the financial position and the results of operations. This

study aims to analyze the competitive financial strength and weaknesses of Cren

Top SnackHaus, to determine their financial performance through the use of

appropriate financial and statistical tools as to expanding business and to

provide recommendations for improvements on the basis of the findings.

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 8

2.1 Research Question/s (or Hypotheses)

The study focused on the study of Business Expansion of Cren Top

SnackHaus along Mapayapa Village, Sampaguita Avenue.

Specifically, it seeks to answer following questions:

1. Is Cren Top Snackhaus operate effectively and efficiently?

2. Are there economies of scale that will benefit Cren Top Snackhaus as it

expands?

3. Based on the analysis of financial statements, do Cren Top Snackhaus have the

adequate working capital that will support their business expansion?

2.2 Significance of the Study

This research will provide useful information to the following parties about the

possible opportunities that can be achieved through expansion:

To the Students. Financial Management majors will be given an idea on

how the expansion of the Cren Top Snackhaus works. This study will help them

understand what they will encounter in life after graduation and the dilemmas

they may encounter in the business world.

To the Professors. This research will be one of the reading materials that

would give them an idea of what

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 9

had happened on the said business and their story or reasons of

expanding their business. Thus, it will give them their students a better

understanding in the expansion business process.

To the Businessmen. If ever a businessmen will encounter problems such

as deficits in his/her business, by reading this they will have an idea that

expansion could be a possible solution. They will also have possible ideas on

how business expansion will happen.

To the Cren Top Snackhaus clients. For those who are having doubts or

second thoughts whether to eat at Cren Top Snackhaus in the process of

expanding, this thesis will give them information to sort their benefit of the

doubt to eat at Cren Top Snackhaus.

To the Society. This will be an sneak peak for the society about the

concept of expanding the business of Cren Top Snackhaus as well as their

financial aspects. This study will also help them understand the process of

expanding a business and how it will affect their customers as well as their

financial aspects.
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 10

To the Future Researchers. This will be an idea for future researchers and

also this can be an example for the expansion process in the food chain’s

industry that may be the basis of their study.

2.3 Scope and Limitations

This study only focused on the business expansion of Cren Top

SnackHaus. The researchers assessed how Cren Top SnackHaus fared with

respect to operational processes, facilities & equipment, management, financial

performance and business expansion.

The control of this approach is the financial benefits, business risks, and

the working capital that supports the business expansion of Cren Top SnackHaus.

This research was conducted during the month of June to August of 2016 and

limited to Cren Top SnackHaus and its personnel, the researchers observed and

interviewed regarding the management practices of Cren Top SnackHaus to

answer the research questions through interview. The participants were

interviewed regarding the management, operational processes and financial

aspects of the company. The results of this study cannot be generalized beyond

this population. Data gathered from this research instrument were analyzed and

the results interpreted.

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 11

CHAPTER 3

REVIEW OF RELATED LITERATURE

The review of this literature focuses on the feasibility of Cren top

Snackhaus to expand along Mapayapa Village, Sampaguitaavenue. Business

expansion planning and strategies are discussed to give the readers a general

description of how business expansion works and the things that the owner

should take into considerations. A review of advantages and disadvantages of

expanding business provides a background for studying expansion feasibility.

I. Business Expansion

“All successful small business startups eventually face the

issue of handling business expansion or growth. Business

expansion is a stage of a company's life that is fraught with both

opportunities and perils. On the one hand, business growth often

carries with it a corresponding increase in financial fortunes for

owners and employees alike. In addition, expansion is usually

seen as a validation of the entrepreneur's initial business startup

idea, and of his or her subsequent efforts to bring that vision to

fruition (“Business expansion ,” n.d)”

FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 12

Business expansion therefore offers possible benefits and

inconvenience or disadvantages. There is a wide division to be

filled in order to catch up with the competitors. In order to attain

the objectives in expanding of business, a business must allow

themselves to follow the trend of diversity -increasing demand of

the public.

II. Financial Benefits

In expanding of business there are factors that can make a good

business sense such as building a name in the business

industry,having better brand recognition, making value in the

business for employees and customers, offering a wider range of

products and services to a larger geographical market, and

creating “economies of scale”

Business expansion can help the company increase revenue

Offer more job opportunities

Aid the financial situation of the foreign country

Build good relationships with partners overseas, which help

create more business

FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 13

Continue business in the event that business at home has slowed

down

Build diversity within the company

Create a good local and global image for supporting communities

Companies may be able to hire employees for a lower rate, which

saves money

There may be lower costs of doing business overseas

Expand by building relationships with nearby countries

By hiring globally, the company is open to bringing in new ideas

and concept

Advantages of Business Expansion

III. Risks in Expansion of Business

The risks of business are real; otherwise everyone would grow

their business. Risks fall into many categories including: personal,
business and competitive.

By acknowledging the risks, you can seek out solutions, learn from
others who have faced the same challenges, and gain confidence
in forging on with your business expansion strategies.

The Case against Growth: Managing Risk

1. Personal Risks: Stress, No Family Time, Loss of Control.

FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 14

If you think that business expansion is not going to affect your

loved ones, and your own health and personal finances, and that

they can be separated from the ongoing pressures of growing

your business - you are misinformed. Safeguard against poor

health by getting regular exercise, eating well and spending

quality time (vs. quantity time) with your family members.

Choose your business partners just as wisely as you choose your

friends/family. Bringing on business partners and signing

covenants can feel to an entrepreneur like they are losing control

and independence. Would you like to own 50% of a multi-million

dollar business, or 100% of a $100,000 business? If you cannot

grow without taking on a new partner then the three questions to

ask yourself when evaluating a potential partnership's worth are:

Is it a good fit strategically?

Is it a good fit operationally?

Could you spend a week on a boat with this person(s)?

2. Business Risks: Instability, Ineffective Management, Financial

Loss.
FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 15

Business growth brings pressures to a system that may not have

had the time/experience to get geared up for increased

production or services. New timings of payables/receivables may

create financial strain. Customers may feel underserved.

Employees may be uneasy about all the changes. The owner(s)

and management may not have the right skills. This is a good time

for a soul-searching examination of strengths and weaknesses. Do

you have enough of the right stuff?

3. Competitive Risks: Unknown Markets, Aggressive Competitors,

Unfamiliar Terrain.

Growing is the next big challenge for a business owner - it's

exciting and new. That part is familiar. Pushing your existing

product into new markets, or new products into existing markets

will be unfamiliar and may have unanticipated results. Also as you

push up against bigger competitors, don't be surprised if they

fight back! Think about outsourcing, bringing in temporary

executive savvy in expansion, training your staff in new

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 16

technology/methodology or starting a new company with new

equity, rather than existing cash flow.

IV. WORKING CAPITAL

According to Henricks (2007), ‘You can't grow unless you have money to invest in

growth. That may seem strange at first. After all, growth is supposed to generate

additional sales and profits, right? That's true, but before you can increase sales,

you usually have to increase your current assets, such as inventory and fixed

assets such as a plant and equipment. Rapid growth means hiring more people,

furnishing more offices and perhaps renting new quarters. Since there's usually a

time lag between the moment you need to invest in growth and the moment

you receive the resulting sales and profits, you need money before you can

grow”.

Financing expansion can take many forms. You can use your own money, borrow

from friends and family, use internally generated funds, approach equity

investors or tap banks and other lenders. The sources for funding growth are

generally the same sources you may have used to start your business. In many

cases, you'll go back to the same sources to pay for expanding your company.

The good news is that it's easier to fund growth in an existing business than it is

to fund a startup.

3.1 Theme 1
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 17

Must be comprehensive in the light of the chosen variables with a view to

surfacing the research blankspots (unexplored area) and blindspots (conflicting

areas in the literature).

Follow a thematic organization. Determine the themes to expound

in the discussion. Themes should be parallel to your research questions and

hypotheses in terms of number, sequence and essence.

3.2 Theme 2
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 18

CHAPTER 4

FRAMEWORKS OF THE STUDY

This part includes all theories, principles, generalizations and

research findings closely related to your study and the framework where the

present study evolved. This will also include the conceptual theory or the

research paradigm, the variables (major and sub-variables) , the process used to

gather data, the expected outcome of the study. The operational framework on

how you will do the study must also be included in this part.

4.1 Theoretical Framework

State or mention the name of the theory and its proponents. If there is a

diagram illustrating a theory, refer to this.

Explain or discuss the details of the theory

Contextualize or describe how the theory is useful to your research

IV.2 Conceptual Framework

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 19

PROFITABILITY
RATIOS
BUSINESS
EXPANSION
ANALYSIS OF FINANCIAL
FINANCIAL LEVERAGE OF CREN
STATEMENTS
TOP
SNACKHAUS
ASSET
MANAGEMENT
RATIO

This part should explain the variables included in the study, the

process used in gathering data and analysis, and the expected outcome based on

the research questions.

4.3 Operational Framework

4.4 Operational Definition of Terms

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 20

UNIT II

RESEARCH METHODLOY

CHAPTER I - RESEARCH DESIGN

The research problems are being answered clearly by the review of

related literature. However, related literatures indicated limited information and

some points are still needed to be investigated regarding the capability of Cren

Top SnackHaus as a food establishment in expanding their business along

Mapayapa Village, Sampaguita Avenue. Therefore, researchers will provide

further evidences to further increase the validity of the topic being studied.

The purpose of this study is to assess and analyze the financial

statements in terms of profitability, asset management ratios as well as its

financial leverage for business expansion. To be able to gather the necessary

data, the researchers utilized the mixed method research, using both

quantitative and qualitative approaches. Through this, the owner and the

personnel of Cren Top SnackHaus are the participants in this study. An interview

will be conducted as research instruments used for the data-gathering to make

evidence that will answer the research questions thoroughly and help readers

understand this paper easily.

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 21

Specifically, this chapter deals and describes the research design;

research instruments; study locale; sampling technique and statistical

treatments that are used in this study.

1.1 Research Design

The study adopted a both quantitative and qualitative method to

establish a concrete and evident data in conducting a study as regards to the

potentiality of Cren Top SnackHaus to expand. Using the mixed method, it is

easily for the researchers to validate the findings in this study since qualitative

approach use to improve a quantitative outcome of the study.

According to Dr. Y.P. Aggarwal (2008), descriptive research under

quantitative method, is concerned to the gathering of information about current

condition for the purpose of description and interpretation. “This type of

research design is not only collecting and formulating facts but includes proper

analyses, interpretation, comparisons, identification of trends and relationships.”

The technique that was used by the researchers under descriptive method is the

normative and evaluative research, which is designed for further analysis and

presenting accurate

Qualitative research thus refers to the meanings, concepts, definitions,

characteristics, metaphors, symbols and description of things according to Berg

(2007). Specifically, ethnographic research design under qualitative approach is

 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 22

used in order to gather data as regards to exploring the cultural phenomena

where the researchers observes how in and off-campus students near Mapayapa

Village, Sampaguita Avenue captivated by the products offered from the point of

view of the subject of the study.

1.2 Research Instrument

A research instruments is used for data collection to attain the point of view

of this study which is the potentiality of Cren Top SnackHaus for business

expansion along Mapayapa Village, Sampaguita Avenue. This intruments

includes questionnaires, interview, observation and secondary sources.

The researchers focuses on interviews as a method of data collection

specifically, semi-structured interview. This type of interview enables the

researchers and the interviewee to diverge in order to come up into an idea or

response in more precise detail. The researchers will ask the owner of Cren Top

SnackHaus for their financial statements needed for analyzing the capability for

business expansion.

According to Helfferich (2009), “a good interviewer needs the following skills:

Technical competence; interactive competence; attention and steering;

competencies in communication on theory and knowing to deal with previous

knowledge and personal bias”. This statement varies researchers to arrive at a

good data and information that would seek to augment this study.
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 23

1.3 Study Locale

The researchers chose to conduct the study at the University of Santo

Tomas, particularly at Alfredo M. Velayo College of Accountancy and the

College of Commerce and Business Administration. The rationale behind this

decision was that the researchers deemed it most feasible given the limited

amount of time to conduct the study, as well as in order for the researchers

to confirm causal observations on the subject matter.

1.4 Sampling Technique

State whether your technique will be: probability random sampling, or
probability non-random sampling or non-probability sampling. Define the
sampling technique and why it is applicable to the study.

1.5 Statistical Treatment

State the statistical treatment of the data and which statistical tools
were used including the statistical packages used to run the analysis.
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 24

BIBLIOGRAPHY

Arrange all literature actually cited in chapters 1 to 4, arrange them

alphabetically and strictly use APA style entries. Sample entries for books,

journals, book edition and internet source are shown below in that order;

Marino, T.J. (2016). Business Expansion Strategy. Retrieved from

http://tjmarino.com/blog/blog-entrepreneurship/business-expansion-

strategy.html

Polevoi, L. (2013). Strategies for Expanding Your Business. Retrieved from

http://quickbooks.intuit.com/r/growing-your-business/strategies-for-expanding-

your-business/#sm.0017a4lsbenxfpu10ts1hqivi2gw6
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 25

Cordray, R. (2015). 10 Valid Reasons Why Businesses Should Always Be

Expanding Their Product Portfolio. Retrieved from

http://www.business2community.com/business-innovation/10-valid-reasons-

businesses-always-expanding-product-portfolio-

01126471#Gp3ICwyeH6Mcef3h.97

Berg, Bruce L.
Qualitative Research Methods for the Social Sciences.
6th Edition. San Francisco: Pearson
Education, In
c., 2007.

(2012). 5 Benefits of Expanding Your Business Platform - Small Biz Daily.

Retrieved from http://www.smallbizdaily.com/5-benefits-of-expanding-your-

business-platform/

(2012). Small Business Expansion: Things to consider. Retrieved from

http://www.yellowpagesunited.co/small-business-expansion-things-to-consider/

(2013). Benifits and risks to the internal expansion of Businesses. Retrieved from

https://getrevising.co.uk/grids/benifits_and_risk

(2014). Business Expansion Introduction: Why Expand?. Retrieved from

http://www.cf-sn.ca/business/business_expansion/intro.php

(2015) Expanding Your Business/Business Expansion. Retrieved from

https://www.rocklandtrust.com/learning/business-banking/expanding-your-

business/business-expansion
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 26

Rinaldi, D. (2009, September 8). Should I Expand My Business?. Retrieved from

https://www.entrepreneur.com/article/203666

Dahl, D. (2010, February 25). How to Develop a Business Growth Strategy.

Retrieved from http://www.inc.com/guides/small-business-growth-

strategies.html

(2010, February 28). Business Sales: Advantages and disadvantages of Business

Expansion. Retrieved from

http://businessandsalesplan.blogspot.com/2010/02/advantages-and-

disadvantages-of.html?m=1

Lockhart, J. (2012, March 21). Benefits of Expanding Your Business on the Same

Block. Retrieved from https://www.americanexpress.com/us/small-

business/openforum/articles/benefits-of-expanding-on-the-same-block/

Pleshette, L. (2013, February 25). Business Expansion: 6 Things to Consider When

Growing Your Business. Retrieved from

http://www.powerhomebiz.com/managing-and-growing/growth/business-

expansion-6-things-to-consider.htm

Eshna. (2013, March 8 ). How Do You Manage Your Cash Flow During Business

Expansion. Retrieved from http://www.simplilearn.com/cash-flow-management-

during-business-expansion-article
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 27

Micallef, K. (2013, June 11). 5 Tips of How To Expand Business. Retrieved from

https://lineshapespace.com/5-tips-to-nurture-and-expand-your-small-business-

part-1

Courtney, M. (2013, June 26). To Grow Or Not To Grow: That Is The Small

Business Question - Tweak Your Biz. Retrieved from

http://tweakyourbiz.com/growth/2013/06/26/to-grow-or-not-to-grow-that-is-

the-small-business-question/

Battersby, M. (2013, October 10). Funding Your Business Expansion -

Convenience Store Decisions. Retrieved from

http://www.cstoredecisions.com/2013/10/10/funding-business-expansion/

Ivanoff, A. (2014, November 26). The Risks of Business Growth. Retrieved from

https://www.sitepoint.com/3-risks-growing-business/

Hecht, J. (2015, August 25). Financing for Business Expansion: The 4 Best Steps.

Retrieved from http://www.inc.com/jared-hecht/financing-for-business-

expansion-the-4-best-steps.html

Puri, R. (2015, November 19). Business Expansion: 5 Warning Signs You Aren't

Ready Yet. Retrieved from http://www.adp.com/thrive/articles/business-

expansion-5-warning-signs-you-arent-ready-yet-5-96

Marinigh, L. (2016, March 15). A Conversation on Business Expansion with AJ

Khan of IICIE. Retrieved from http://www.futurpreneur.ca/en/2016/business-

expansion-aj-khan
 FAR EASTERN UNIVERSITY – FERN COLLEGE PAGE 28

Burnam, C. (2016, March 23). 6 Signs That You Should Stop a Business Expansion

in Its Tracks. Retrieved from https://www.entrepreneur.com/article/270939

William, D. (2016, April 22). 8 Effective Small Business Expansion Tips to Grow

Beyond Your Current Status. Small Business Trends. Retrieved from

http://smallbiztrends.com/2016/04/small-business-expansion-tips.html

http://ijtbm.com/images/short_pdf/Apr_2012_NEERU%20SALARIA%202.pdf

https://www.american.edu/ctrl/upload/Qualitative-Research-

Introduction.pdf