Republic of the Philippines

COLLEGE OF BUSINESS ENTREPRENEURSHIP

Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

A Feasibility Study
Presented to the Faculty of the
College of Business, Entrepreneurship and Accountancy
Cagayan State University, Andrews Campus
Tuguegarao City, Cagayan

In Partial Fulfillment for the Degree

Bachelor of Science in Business Administration Major in Marketing Management

Presented by:

BACUD, ABIGAIL S.

BERGONIA, KAREN KAE A.

CASAY, GERALDINE D.

DUYAO, CLARIZEL T.

PERALTA, SHEILA MAE D.

TAGUINOD, ARCIE B.

2022

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

APPROVAL SHEET

In partial fulfillment of the requirements for the degree Bachelor of Science in

Business Administration Major in Marketing Management, this Feasibility Study
is entitled: “BANANA CAFÉ ” has been prepared and submitted by: Abigail S.
Bacud, Karen Kae A. Bergonia, Clarizel T. Duyao, Geraldine D. Casay, Sheila Mae
D. Peralta, Arcie B. Taguinod are hereby recommended for oral presentation.

___________________ ANTHONY CEASAR F. ZAMBALE, CPA, MBA

Date Evaluator

Approved by the evaluator on oral examination with the grade of _____.

Accepted in partial fulfillment of the requirements for the degree of Bachelor of

Science in Business Administration major in Marketing Management.

_______________ GIGED TONG-BATTUNG, DBM

Date Dean, College of Business,
Entrepreneurship and Accountancy

TABLE OF CONTENT
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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Approval Sheet…………………………………………………………………………………………ii

Table of Contents………………………………………………………………………………………iii

Acknowledgement…………………………………………………………………………………….vii

Dedication……………………………………………………………………………………………….viii

I. INTRODUCTION ……………………………………………………....1

EXECUTIVE SUMMARY…………………………………………………..2

Vision…………………………………………………………………………….2

Mission…………………………………………………………………………3

Statement of the Problem.....................................................................3

Objectives of the Study...........................................................................3

Significance of the Study........................................................................5

Scope and Limitation..............................................................................6

Methodology..............................................................................................6

Research Design and Framework....................................................6

Sampling Procedure..............................................................................6

Treatment of Data..................................................................................7

Review of Related Literature.............................................................7

Marketing Demand.................................................................................7
Management and Organization...................................................8

Form of Business……………………………………………………..9

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Financing.............................................................................................9

Technical/ Production..................................................................9

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

II.MARKETING STUDY……………………………………………………….11

Project Background……………………………………………11

Industry Profile.........................................................................11

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

Product Description...............................................................12

Business Logo……………………………………………………13

SWOT Analysis............................................................................13

Demand-Supply Analysis/Market Share..........................15

Marketing Mix Strategies………………………………………20

III. TECHNICAL AND PRODUCTION

Location.............................................................................................................22

Gant Chart………………………………………………………………………….23

Plant Layout and Size…………………………………………………………24

Sample Product……………………………………………………………25

Product Specification………………………………………………….....26

Product Preparations and processes………………………………26

Source of Raw Materials………………………………………………..34

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Waste Disposal Management………………………………………….34

IV.ORGANIZATION AND MANAGEMENT STUDY……………………………..35

Form of Organization.............................................................................35

Organizational Structure......................................................................36

Functional Organizational Structure................................................36

Job Qualifications......................................................................................37

Company Policy……………………………………………………………...38

Compensation Package............................................................................39

Salaries…………………………………………………………………………..39

Employee Benefits…………………………………………………………..39

Projected Timetable..................................................................................40

V. FINANCIAL STUDY……………………………………………………………………….41

Major Assumptions......................................................................................42

Capital Requirements/Investments......................................................41
Projected Income Statement.......................................................................42

Projected Statement of Cash flow…………………………………………..43

Projected Statement of Financial Position……………………………....44

Notes to Financial Statement…………………………………………………45

VI. APPENDICES

Sample Questionaire..........................................................................................52

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Summary of Survey Result……………………………………………………..

Curriculum Vitae.........................................................................................

ACKNOWLEDGEMENT

By the God’s guidance and his blessings of wisdom and courage we made
this study possible. Through His gratefulness to made students study with full
passion and courage. We extend our deepest gratitude from our hearts to people
who had help us to make this study possible.

To our Parents, we will always be assuring you that we will keep our
promise to strive to the best that we can on studying. As your son/ daughter we
are so thankful and grateful for your love and support. This study is done,
because you are never hesitating to give us the moral and financial support
unconditionally.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

To our institution, Cagayan State University Andrews Campus, where we

continuously growing as a marketing management student. We are deeply
grateful to our respondents, without them this research would not have
succeeded. We also want to extend our appreciation to those who could not be
mentioned here but have well played their role to inspire us behind the certain.
At last but not the least, our feasibility study teacher Mrs. Maria Victoria
Cumagun Gannaban, our warmest thanks for your guidance that will help us
achieve our aspirations as we go along with our journey in life.

DEDICATION

We would like to dedicate this feasibility study to our families who

supported us to conduct this feasibility study, for the teachers who help and
guide us to make a final output and for the future researchers who can use this
study as their guide or reference. To our brothers, sisters, relatives, mentor,
friends, and classmates who shared their words of advice and encouragement to
finish this study. And lastly, we dedicated this book to the Almighty God, thank
you for the guidance, strength, power of mind, protection and skills and for
giving us a healthy life. All of these we offer to you.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

CHAPTER ONE

I. INTRODUCTION
Philippines is a “Nation of Coffee Drinker”, according to the study of
Kantar Words panel Philippines. The rich history of culture in the country
started way back 1740, it was introduced by Spanish monks in town of Lipa,
Batangas. Coffee had become part of the lives of Filipino families. It was
evidenced by the 2020 total consumption of Filipinos which is about 3.3
million 60 kg bags. It reflects a long-term increase of coffee consumption over
the years. It was then an opportunity to look on the potential of establishing a
coffee shop in a vicinity where coffee lovers might end up frequently. A café
where people will find themselves comfortable and happy with a quality cup
of coffee and a sweet Banana cheese rolls.
Banana cheese rolls which is a perfect blend for a coffee, a perfect match
for a breakfast or merienda. Other than banana cheese roll, the café can also
offer other banana recipes after two months of the opening. Banana pudding,
banana cue, banana chips, boiled banana, and also banana cupcakes will be
the best choices to also complement the coffee. Banana will offered as a
partner for the coffee for their highly nutritious, have a wonderful sweet
tastes, and serve as one of the main product of localities specially in Gattaran.
Bananas are grown in at least 107 countries, primarily for their fruit.
Philippines belong to top banana producing nations and a good source of
income to 5.9 million farm households (Rivera 2004). Banana is the most
versatile and most widely eaten fruits in the world today. Depending upon
cultivar and ripeness, the flesh can vary in taste from starchy to sweet, and a
mixture from firm to mushy.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

A café is a house for all coffee lovers, not just because of its offered products
but also for its relaxing service and ambiance. Specially right now that having
coffee isn’t just ordinary stuff in the morning. It is an awesome time to reveal to
feel at peace and a minute to rest. It gives people a reason to allot time to think
and to talk with friends. A don’t just feed an empty stomach, it feeds emotional
cravings and space. Hence, the idea of establishing “Banana Café” is
conceptualized. Since there is seen to be a potential abundant supply of banana
in Gatarran, Cagayan and a presence of only one competitor, this feasibility study
is conducted to determine the viability to openthe café on the said municipality.

EXECUTIVE SUMMARY

Management

One of the general partners of Banana Cafe, Ms. Geraldine D. Casay is the Store
manager charged for daily operations. The remaining partners serves as a
cashier and helpers. The barista is hired for the needed skill for coffee
preparation. Through the illustrated organizational chart and employee job
specifications there is a feasible efficient flow of business operation.

Marketing

Based on conducted survey within the Municipality of Gattaran, there is a

great amount of demand for coffee business. The target market is known to be
within 22-26 age bracket dominated by females. The study is really feasible after
the analyzation of present and potential competitors around the area. The
available supplies for production and the famous social media platforms as an
unlimited opportunity for business promotion.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Technical

The Banana Cafe provides a layout design that ensures fast product
preparation. The product offerings are banana cheese rolls, coffee barako, coffee
latte, and cappuccino. There is a list of raw materials and equipments with their
corresponding costs

Financial

The start-up capital of "Banana Cafe" is 600,000 which is an equal contribution of

the general partners to operate the coffee business venture.

Vision Statement

Food as it should be. Food should taste good. It should feel good. It should do
good things for you and your surroundings.

Mission Statement

Banana Cafe aims to provide new yet outstanding version of every product
we offer in order to satisfy the cravings and gain loyalty of our customers.

Statement of the Problem

As the Covid-19 pandemic hardly hits the business around the world, its
stock holders are directly affected. The employees, suppliers and most of all the
consumers. People felt the struggle from losing part of their income, and to
essential goods that continuously becoming expensive. However, along the crisis
lies an opportunity.

The infrastructures improvements at Gattaran Public Market (GPM) is a sign

of being open to more business. Lately, Milktea Shops become a home of multiple
number of Milktea hubs. The beverage seems to be not affordable anymore for
average consumers. Hence Banana Café is proposed to fill an opportunity.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Ignoring the demand for an affordable beverage and its service will lead to
loosing the chance of gaining in different aspects. It will not only give profits to
owners, but contribute to the local development of Gattaran as a whole. It will
satisfy the mass market., give employment, and help local suppliers.

Based on the stated challenges on beverage industry of the locality, this study intends
to determine the viability of a café business in Gattaran Public Market.

Objectives of the Study

The overall objective of the study is to determine whether the Banana Café
will prosper or not. To measure its viability and different projections on its
financial, marketing, and organizational aspects.

Financial Objectives:

1. To determine the capital requirements for starting a café business in Gattaran.

2. To determine sources of financing for the café business.
3. To prepare a financial statement projection for the banana café to be located in
Gattaran.

Marketing Objectives

Banana Café main objectives is to be a center of society that serves high

quality coffee and nutritious snacks. Aiming to become one of the top
snackcoffee establishment by gaining the loyalty of the customers who will
patronize our product and to be known in Gattaran, Cagayan.

The following objectives are design:

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

1. To delight customers by meeting their expectation and to guarantee satisfaction.

2. To established a convenient way to cater the most of the customers in Gattaran
Cagayan.
3. To increase the sale of our product to maintain high quality products and services.
4. To determine the more appropriate marketing strategies for the café business.
5. To identify the niche market for the café business in Gattaran.
6. To formulate a Marketing Mix for the business café to be competitive in Gattaran
Public Market.

Operational or Production Objective

1. To determine the minimum possible resource consumption of the banana café

in Gattaran.
2. To identify the appropriate and adequate equipment and facilities for the café
business.
3. To operate the operational process of the business specifically on cooking
procedure and customer service.
4. To identify operational and legal requirements to operate the café business in
Gattaran.

Management or Organizational Objective:

1. To determine the most appropriate form of set up of “Banana Café” in Gattaran,

Cagayan.
2. To identify the duties and responsibilities to be accomplished in “Banana Café”.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

3. To determine the most appropriate management structure for the café business
in Gattaran, Cagayan.

SIGNIFICANCE OF THE STUDY

This study will be conducted, to propose Banana Cheese Rolls and Coffee in
Gattaran, Cagayan.

This findings of the study will be a great help to the following:

Local Government Unit (LGU)- this study would leave a big impact to the Local
Government Unit in terms of increasing the banana and coffee plantation that
will respond and sustain the supply and demand of the community that can
afford them also to supply the market. This would also help the municipality to
improve the livelihood of its residents. Moreover, this study will motivate them
strengthens their relation with the masses.

Local Entrepreneurs- this study would help the local entrepreneurs by giving
ideas in creating and discovering a product that is nutritious and can be sell in
the market through using value-added products turning into another product.
They can use this as their tool to start a business that would help them to sustain
daily needs.

Marketing Management Students- this study would help the marketing management
students as a source of guide for their further experimental research in the future. This
can also stand as their pilot in terms of giving knowledge in creating a new recipe in a
resourceful and innovative way.

Local Farmers- this study will help the local farmers to earn extra and sustain
their daily needs by selling new food innovation which is the Banana Rolls and
coffee. This study also helps them motivate to increase the banana and coffee

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

plantation thinking they must cover the demand growth of the community.
Moreover, the farmers would offer advantages to local markets.

Future Researchers- this study will serve as a reference for future researchers whose
aim to conduct a feasibility study related to Banana Rolls and coffee.

SCOPE AND LIMITATION

The study will tackle the feasibility of a banana café business to be located
at Centro Sur, Gattaran, Cagayan specifically at the public market. This study will
cover the randomly selected respondents from the 50 barangay of Gattaran. This
feasibility study of the “Banana Café” business will be conducted in four to six
months period. Due to the situation of pandemic the survey of this study is
limited in floating its questionnaires through the internet. The information is
automatically tallied and treated using the Google Forms.

METHODOLOGY

Sources of Data

The data in this study were gathered using a researcher-made questionnaire

through Google forms. The demand for Café and customers’ preferences were
answered by the chosen respondents. The questionnaires were given to the
respondents to gather the data needed for

the study. Consent was obtained from the respondents beforehand and
confidentiality was observed throughout the data gathering procedure. The
questionnaire was divided into two parts. Part 1 was used to gather the
profile of the respondents in terms of age, gender, location and employment
status. Part 2 was the main questionnaire on the respondents’ responses as
to their preferences.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Research Design and Framework

This study determined the feasibility of putting up a Banana Café in the

vicinity of Gattaran. Therefore, a descriptive research is the suitable study design
to use.

Sampling Procedure

The study acquired appropriate data from the conducted survey through
Google forms. There are 58,874 total populations in Gattaran, Cagayan. Due to the
large number of the targeted market, the study used the sampling formula to
determine the sample size of respondents who will be need to participate in this
feasibility study. According to Masanja (2018) the sampling formula is provided.

N
n=

n= = 397.3= 397 individual market

Where n = sample size N =

number of population e

= Margin of error

The study applied the 5% margin of error and an estimated sample size of
397 individual market respondents located in Gattaran, Cagayan.

Treatment of Data

The data gathered from the questionnaires were analyzed using

descriptive statistics where percentages are derived to describing the

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

sociodemographic profile of the respondents. As well on assessing on how do the

Gattarenos react on the said Banana Café.

The collected data had categorized into information that helped the
researchers succeed the aims of the study. Before the actual data analysis,
questionnaires were checked to determine if accurate samples were obtained as
per the number of questionnaires to be issued and relevance to be confirmed.
The obtained qualitative data will be evaluated using descriptive statistics such
as percentage, means and bar graphs to form a conclusion.

REVIEW OF RELATED LITERATURE

Marketing Demand

The local coffee scene has been rising in the recent years. Even during
pandemic, the local scene has been making strides. With the previous interview
with Businesses Development Coordinator Emmanuel Quisol, he said that “the
rise of mobile coffee shops can be born out of the closure of several cafes and
coffee shops”. He also mentioned that, “Millennials and those aged between 30 to
40 years old tend to look for coffee that would give them different experiences in
terms of how it tastes. There is still room for growth in local coffee industry
because coffee shops haven’t saturated the market yet. The popularity of coffee
shops in the Philippines does not seem to dwindle as more and more pop-up
after the emergence of a local Starbucks. As of 2014, the Philippines produces 25,
000 metric tons of coffee and is 110th in terms of output. From the given view of
how coffee shops are working in the market it is duly a demand to establish the
banana café to more localities specifically at Gattaran, Cagayan. The potential
sales for serving coffee in the café itself is not yet maximized for market is not
saturated. To be direct, competitors cannot be the biggest challenge in the café
business in Gattaran.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Management and Organization

The management and organization of a coffee shop needs a supply and

education to be hand in hand. Philippines is significantly reflecting a global trend
in coffee, so entrepreneurs are now currently looking at creating new processes
and continue adding value to the end product. With regards to it, the banana café
will be managed and organized base on the following considerations:

1. The Banana Café will establish it’s daily operation to maintain high
level of quality. Ensuring adequate staffing to enable efficient scheduling
shifts.

2. The Banana Café ensures customer relations to develop customer

relationship. Learning customer wants leads to a way better management
by using their suggestions as an input for business improvement.

3. The Banana Café will look on inventory management as for

tracking the daily demand and sales to avoid food and beverage waste.
Without disregarding the needed adequate supply for the business
function. It is crucial to minimize cost of production and maximize
employee efforts.

4. The Banana Café have an ideal properly organized structure for

the whole team. Thus, Employee management will be applied for
empowering employees; promoting personal responsibility among
members. As well as the power of management in solving internal
conflicts using structural resolution skills coming from the open
communication among employees.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Form of Business

Banana Cafe is a general partnership business arrangement. It is made

up of six individuals agreed to share in all assets, profits, financial, and legal
liabilities. It assumes unlimited liability but is less expensive to form
compared to a corporation. Running a cafe with partners suits well, the
responsibilities can be delegated among members while essence of unity is
not disregarded. The business partners has the chance of showing
appreciation as an encouragement to awaken performance productivity.
Capital or Financial contributions for the business is equally divided among
members. This allows swift and decisive management through the flexibility
of structuring the business.

Financing

Financial hurdles are experienced by cofeeshops but manages a gross

margin for as high as 85 percent. It is done by keeping scrupulous
bookkeeping records and glean as much information as possible. Being
proactive, well- informed and savvy will make cash inflows attractive.
Increasing size of offering baked goods and some other sweet snacks can build
up a profit. Although average operating income for small cafes is just 2.5
percent of gross sales it tends to be more profitable in the long term after
doing the work you love and creating a gathering space for the community.

Thus, banana cafe has marketing strategies to achieve it's goals on

providing value, customer relationship and profitability .

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Technical/ Production

Brazil and Vietnam accounts for the highest production of coffee in terms
of volume, owing to suitable coffee growing conditions. With the production of
3.6 billion metric ton of green coffee, Brazil is the largest producer globally. In
the Philippines, there are nearly 276,000 coffee farms, with about 79.4 million
trees.

According to Perfect Daily Grind, 60% of cafe's closes in their first year of
opening because of inadequate capital, industry inexperience, and market
saturation. Technically , in early 2000's the only factor for success is
"location". However, the vast- changing consumer preferences creates a
difference on coffeeshop's whole business operation. For an efficient
production to happen, proper management of supply chain is a must. From the
delivery of raw materials, time delivery and quality of bananas and coffee
beans affects the final output. The entire process of product preparation
depends on the physical layout design of the whole cafe establishment. As to
the position of equipments, storage, and counter will affect the fast and quality
service. The equipment must meet the menu and skills of barista. A safe
working space also needs a great attention. Having a skilled manpower
creates a distinctive appeal because it can nail or fail the customers
expectations and purchasing decision. Technical production should be
wellmanaged to be recognizable and consistent to the market.

Definition of Terms

Espresso – full-flavored, concentrated form of coffee that is served in “shots.” It

is made by forcing pressurized, hot water through very finely ground coffee
beans.

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Cappuccino – is a coffee drink that today is composed of double espresso and hot
milk with the surface topped with foamed milk and most often prepared with an
espresso machine.

Latte - type of coffee made with espresso and hot steamed milk, milkier than a
cappuccino.

General partnership - is a business arrangement by which two or more

individuals agree to share in all assets, profits, and financial and legal liabilities of
a jointly-owned business.

Gross margin- shows the amount of profit made before deducting selling,
general, and administrative costs.

Savvy - a person who’s generally knowledgeable, experienced, and wellinformed.

Proactive - is someone who takes an active role in dealing with something

before it needs to be taken care of. A person who gets things done.

Glean - to gather slowly and laboriously, bit by bit.

Scrupulous - very careful to do things properly and correctly.

Barista – the person who prepares coffee on a coffee shop

CHAPTER TWO
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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

II. MARKETING STUDY

Project Background

The "Banana Cafe" is a business idea that is all agreed upon by the general
partners. It is conceptualize because of similar interest and love for coffee.
Banana is incorporated to the business name to highlight the offered banana
cheese rolls as a coffee partner. To feature banana as one of the most known
agricultural products of the locality.

Industry Profile

Our business, Banana Café is under the food and beverage industry in
which it takes a lesser effort and capital to start compared to new entrants of
other businesses in the industry in which it takes lesser effort and capital to start
compared to new entrants of other business in the industry. A competition is
expected, that is why we have came up to a unique selling proposition to achieve
our main objective. An advantage to capture a bigger chunk of the market share.

Rivalries among the food and beverage industry is great. An intense

competition of marketing strategies to be recognized and patronized. The best
way of getting ahead is using the weakness of competitors as an edge of
opportunities. Threat of substitute products are normal because of offered wide
varieties of beverages in the industry. However, banana café’s advantage is
providing the product in it’s most affordable price as possible while keeping the
quality service o the establishment. The Banana Café isn’t just after the profit but
also creating value for the market. The vast-changing customer behavior right
now is a big challenge. Changes on customer preferences totally redirect the
price and demand of products. In regard to this, the business would adjust to
cater the low, middle or Average income bracket.

14
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Business Description

Banana Cafe is designed to serve a quality food and beverages to

consumers. It provides a space of value while enjoying the snacks. A perfect
place to stop and take a rest while having a sip of coffee. Available books and
magazine will let customers feel the cafe care about their reading hobbies.

Product Description

The Banana Café will be establish to offer the products where demand is
seen in the local community of Gattaran, Cagayan. Banana café will give its
consumers the best coffee flavors in a mug or paper cups. The capuccino, coffee
latte, and barraco partnered with the nutritiously made Banana cheese rolls.
Where Coffee is known to be an energizer. It is best preferred by students and
workers while banana is considered a rich source of vitamin B6, vitamin C,
manganese, potassium, dietary fibers, and protein. It contributes to the proper
functioning of metabolism, nervous system and in the digestion process. Other
than the physical products to be served, the banana café has its mission in
creating relationships. The service and the ambiance to give positive vibes to
customers will also be part of the product package.

15
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Business Logo

Our Business logo represents our brand. Brown Color is a classical

approach for the middle age group market. Green color signifies the coffee shop
industry. The coffee and banana are displayed as core products of the business.

SWOT Analysis

STRENGTHS WEAKNESSES

• Low capital requirement. • New to the industry

• Easy Product preparation. • Industry inexperience 
• New product offering. It lacks comfort room
• Good place located at Gattaran Public
Market
• Distinctive service provided by free
reading materials
• Unique Ambiance

16
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

OPPORTUNITIES THREATS

• It has only one competitor • Price increase on raw

• Growing population of materials due to new
coffee drinkers government policies.
• Unlimited platforms for promotion • Supply of Banana and
coffee bean may be
affected by natural
calamities.
• New entrants of
competitors in the industry
 Market Saturation

DEMAND-SUPPLY ANALYSIS

17
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Table 1. Age of the Respondents

The table below shows that most of the respondents are 22 to 26 years of
age. It has garnered the highest percentage which is 37% of the total sample. The
age bracket belongs to early adulthood that is typically vibrant, active and
healthy and focused on friendships, romance, and career.
Age Frequency Percentage

12-13 20 5%

17-21 100 25%

22-26 148 37%

27-31 51 13%

32-37 38 10%

38-42 20 5%

43-47 20 5%

Total 397 100%

18
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Table 2. Gender of the Respondents

The total respondents are dominated by female which is 61% of the total
samples. Although, male consumes more coffee than females it is now also a
preferred drinks for women to boost alertness and improve relaxation.
Gender Frequency Percentage

Female 242 61%

Male 155 39%

Total 397 100%

Table 3. Preference of Buying on Banana Cheese Roll

As been shown on the table, 61% of the respondents are willing to

purchase banana cheese rolls. Which indicate a great demand for the product.
Preference Frequency Percentage

Yes 242 61%

No 155 39%

Total 397 100%

19
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Table 4. Price of Banana Cheese Rolls

The most preferred price that the respondents are most willing to pay for
the banana cheese rolls is 10 pesos. 45% of the samples chose the most
affordable price.
Price of Banana cheese Rolls Frequency Percentage

10 179 45%

15 87 22%

20 67 17%

25 64 16%

Total 397 100%

Table 5. Preferred Beverages

The result shows that the most preferred beverage of the respondents is
coffee. It has a total frequency of 246 and a percentage of 61%. Coffee is
therefore, accepted by the bigger market share.

Price of Banana cheese Rolls Frequency Percentage

Chocolate 127 32%

Coffee 246 62%

Fruit tea 24 6%

Total 397 100%

20
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Table 6. Coffee Preference

As to coffee preferences; 46% of respondents mostly prefer cappuccino,

while 33% goes for coffee latte. Barako is less preferred which is chose by only
21% of the sample.

Coffee Preference Frequency Percentage

Cappuccino 183 46%

Barako 83 21%

Coffee latte 131 33%

Total 397 100%

Table 7. Price of Coffee

194 out of 397 samples are willing to pay for our coffee with 20 pesos,
while 103 of them would want to pay for 15 pesos. The least price of 10 pesos is
also preferred by the remaining 100 respondents.

Price of Coffee Frequency Percentage

10 100 25%

15 103 26%

20 194 49%

Total 397 100%

21
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Table 8. Price of Banana Cheese Rolls with Coffee

73% of the respondents are most willing to buy banana cheese rolls and
coffee at an amount of 45-50 pesos. While 17% opt to pay for 60 pesos and up for
the product. The remaining 10% settles for 55-60 pesos to avail.

Price of Coffee Frequency Percentage

45-50 290 73%

55-60 40 10%

60 and up 67 17%

Total 397 100%

MARKETING MIX STRATEGIES

Product

Our product will be innovated continuously; we will be offering different

flavors of coffee. Alternatively, during summer time we will be offering iced
coffee. We have barako, cappuccino, and coffee latte partnered by banana cheese
rolls.

Price

Our price will be equal to the quality of our products and service to be
provided for the customers. However, we will make our products prices
affordable as much as possible. It will be more affordable if it is done in regular
orders. Our product price offerings are seen to be less expensive compared to
other coffee shops. We will apply cost-based pricing and penetration pricing.

22
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Place

The business is situated exactly in front of Gattaran Public Market.Through

our promotional techniques, our location will be easily notice by the majority of
the expected target market. It is positioned at the right side of Mariel Drugstore.
Our location is convenient when something happens that needs a fast response
on a demand. More specifically, if it was shortened with supply nearby suppliers
will be found only meters away from the business location. The business ensures
the safety of the inventories; it is really fine to leave few of the equipment and
raw ingredients in the stockroom locked.

Promotion

Banana Café will use a sales promotion which will penetrate the market.
Giving free coffee for the first 50 customers in the grand opening. Tarpaulins
and flyers will be generated to inform the mass market. To attract interest and
desire we will take advantage on the free powerful social media platforms.

23
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Tarpaulin

Flyers

CHAPTER THREE

24
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

III. TECHNICAL AND PRODUCTION Location

The proposed business and processing site will be operated at Gattaran

Public Market. The size of the area to be rented is 49 square meters (rental
price of 5,000 per month). The site is suitable for building a café because it is
close to the sources of raw materials and it is also accessible since it is along
the road.

Gattaran Public Market

Gantt chart

The chart below states the activities for making a business establishment
before the normal operation will take place.

Table 1 Gantt Chart

25
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

ACTIVITIES AUG SEPT OCT NOV DEC JAN

1.Organizational Planning

2. Acquisition of Funds

3. Find Business Location

4. Sign the Contract of Rent

5. Apply Business Permit

6. Purchase Furniture,
Equipment, and Products

7. Finding Supplier of Raw

materials

8. Hiring of Employees

9. Grand Opening

Plant Layout, Size

The Building

The building would be a one-storey structure. The main floor would

consist of five round tables with two chairs each, and bookshelves in the side.

26
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

The kitchen and storage room would be established at the end of the corner, a
counter will be installed beside the kitchen.

Our building will be constructed in a way that it will catch the attention of the
potential customers, aside from making them feel comfortable and relaxed.

The proposed building and space will be rented. The renting helps to

bring down the cost rather than buying and constructing a new building. Floor

plan

Sample Product

Banana Cheese Rolls Cappuccino

27
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Coffee Latte
Barako

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 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

Product Specification

Banana cheese rolls are sweet banana flavoured bread with a surprise of
ooey gooey cheese inside. Best eaten with a cup of hot tea or coffee.

Product Preparations and Processes

PRODUCT 1

Banana Cheese Rolls

Ingredients

• Banana  Eggs
• Vanilla extracts  Sugar
• Flour  Bread crumbs
• Milk  Cooking oil
• Cheese

Procedure: until well-incorporated. You can

use plastic gloves dabbed with
1. In a cooking pot, pour-in oil when mixing the ingredients
water and bring to a boil.
to avoid sticking. Add-
in the “saging na saba” .
4. Scoop a handful of the mixture
Cover the pot and simmer until
and then flatten it. Place the
soft. Transfer to a bowl and let it cheese strip at the center and
cool for 15 minutes.
then proceed to roll it into a log-
2. Peel off the skin and then mash shape.
the bananas until a fine texture

is achieved.
5. Repeat this step for the rest of

29
 Republic of the Philippines
COLLEGE OF BUSINESS ENTREPRENEURSHIP
Cagayan State University & ACCOUNTANCY
ANDREWS CAMPUS
Tuguegarao City 3500, Cagayan, Philippines

Tel nos.: 63-078-844-8650 website: www.csu.edu.ph email: epgeron@csu.edu.ph

3. Add-in the all-purpose flour,

6. the mixture
milk and vanilla extract. Mix

7. In two separate bowls, add-in the

beaten eggs and the breadcrumbs
separately.
8. Dip the rolls fully into the beaten
eggs, and then into the
breadcrumbs until fully covered.
9. In a cooking pan, pour-in and heat
oil in medium heat.
10. Add-in the rolls. Deep-fry until
golden brown.
11. Transfer to a serving plate or
serving tray and dry excess oil
with paper towels. Serve.

30
 Republic of the Philippines
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

PRODUCT 2

Coffee Latte

Ingredients and Equipment:

• Espresso
• Steamed Milk
• Foamed Milk
• Coffee machine with Steam wand/arm
• Milk Jug
• Thermometer Procedure:

1. Prepare an espresso (single or double) directly into a latte glass.

2. 1/3 fill your milk jug - whole milk is recommended.

3. Purge your steam arm prior to attempting to steam your milk.

4. Foam your milk prior to brewing your espresso, paying attention to
creating a nice smooth micro foam.
5. After foaming/frothing your milk, gently tap the jug or bump on a table to
remove any unwanted large air bubbles.
6. Begin pouring the frothed milk to your espresso from a relatively high
position.
7. Continue to pour whilst lowering the milk and steepening your pouring
angle.
8. Ensure a small amount of stiff milk foam sits on top after pouring.
9. Enjoy your latte.

31
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

PRODUCT 3

Cappuccino

Ingredients and Equipment:

• Espresso
• Steamed Milk
• Foamed Milk
• Coffee machine with Steam wand/arm
• Milk Jug
• Thermometer

Procedure:

1 .Foam and texture the required quantity of milk.

2. Brew a single or double espresso (as per taste or order) directly into
your serving cup.
3. Gently swirl the milk to release any large air bubbles - tap the milk jug
against a counter to remove any stubborn bubbles.
4. Pour the milk over the espresso from a low height for a smooth drink.
5. Finish by giving the milk a slight 'wiggle' to ensure foam transfers from
milk jug to the cup to top off your Cappuccino.

PRODUCT 4

Barako

Ingredients:

• 4 cups water boiled

• 3.5 tbsp. kapeng barako
• 3 tbsp. sugar (brown sugar or muscavado).

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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Procedure:

1. Measure approximately 200 mL of purified, filtered water and heat it up

with the grinded coffee beans until it boils.
2. While waiting for the water to boil, measure 2tbsp. or 10 grams of coffee
beans and place it in a container (ceramic or stainless). Never use plastic.
3. Upon boiling of the water, measure 180 mL from the 200 mL water just
have boiled and placed it in the ground coffee beans.
4. Set your timer to 5 minutes and cover your container. Slowly and gently
mix your coffee every minute.
5. Using a mesh or a cheesecloth, or anything that can filter your coffee.
Slowly and gently pour your coffee on to a separate container. If you are
not going to consume all of your brewed coffee, a thermos is needed to
keep your coffee hot.

Production Schedule

The activities should be done and properly planned for the completion of the
production, and included here are:

1. Registration of the location of the business at the Department of Trade

and Industry.
2. Paying a visit at the mayor’s office to get a permit or license to go into a
business.
3. Apply for TIN number at the Bureau of Internal Revenue for tax purposes.
4. Registration of benefits of employees at the social Security System and
Phil health.

33
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

F. List of Raw Materials, Machineries, Tools, and Equipment with

Corresponding Costs

Raw Materials (Product 1)

QUANTITY PRICE AMOUNT

Banana 10kg 58 580.00

Flour 1kg 45 45.00

Sugar 5kg 50 250.00

Milk 2kg 130 260.00

Cheese 165g 60 60.00

Vanilla Extract 60ML 25 25.00

Eggs 2 dozen 7 168.00

Breadcrumbs 230g 27 27.00

Cooking Oil 17L 1650 1,650.00

TOTAL AMOUNT 3,065

PRODUCT 2

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

QUANTITY PRICE PER PIECE AMOUNT

Coffee Bean 10 (250g) 135 1,350.00

White Sugar 2kg 53 106.00

Milk 1L 110 110.00

Creamer 1L 130 130.00

TOTAL AMOUNT 1,696

PRODUCTION TOOLS

MATERIALS/SUPPLIES QUANTITY AMOUNT

PRICE PER
PIECE

Automatic Drip Coffee maker 1 12,000 12,000

Coffee Grinder 1 14,532 14,532

Refrigerator 1 5,999 5,999.00

Cart 1 1,000 1,000.00

Measuring spoons 10 19.9 199.00

35
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Plates. 50 20 1,000.00

Iced Tea glasses 50 52 2,600.00

Spoons 50 23 1,150.00

Straws 100 0.64 64

Disposable Coffee Stirrers 200 0.34 68

mugs 30 40 1,200

napkin 20 22 440

Paper Cups (12 Oz) 50 7 350.00

Frying pan 1 250 250.00

Strainer 1 68 68.00

Tong 1 119 119.00

Stove (double burner). 1 699 699.00

LPG 1 660 660.00

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Dishwashing Liquid (Large). 2 180 364

Sponge 2 6 12

Rags 10 15 150

Trashcan 2 99 198

Dustpan 2 49 98

Mop 1 280 280.00

Books and Magazines 10

Computer Set 1

TOTAL AMOUNT 42,840

FURNITURES

QUANTITY PRICE PER PIECE AMOUNT

Tables 5 339 1,695.00

Chairs 10 375 3,750.00

37
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Book Shelves 1 769 769.00

Display Cases 1 3,999 3,999.00

TOTAL AMOUNT 10,213

Sources of Raw Materials

The raw materials are mainly banana, flour, milk, vanilla extract, cheese,
eggs, bread crumbs, sugar, milk and Cramer. The coffee will be purchase at Rizal
Kalinga and Banana will purchase from the contracted vendors in Gattaran,
Cagayan. Four, milk, vanilla extract, cheese, eggs, bread crumbs, sugar and
Cramer will be purchased at Gattaran public market.

Waste Disposal Management

Proper waste disposal and segregation is necessary not only for the
compliance of RA 9003, but to ensure everyone’s health safety. Trash bins will
always be emptied every after the crews end their duties. Cleanliness of utensils
will be checked every day, because it is always used in production.

Maintain cleanliness to avoid pest to manifest inside the shop. Molds and
microorganisms will be avoided through daily cleansing. Ensuring food safety
will build a good image for a business.

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

CHAPTER FOUR

IV. ORGANIZATION AND MANAGEMENT STUDY

Legal form of the business

The legal form of the business is general partnership which consists of six
(6) members to invest, manage and operate the business.

Form of Ownership

General Partnership

It is composed of six partners obviously the known investors of ideas and

capital to the stated business. The business registration requirements are
needed; it is required to be registered on the Security and Exchange Commission.
Before going to such registrations it is needed to have at least Business Clearance
from the Barangay Captain of the place of our business. Particularly in Centro
Sur, Gattaran, Cagayan. Having all the document needed we are required to
obtain Mayors Permit from the Municipals Office.

For the legalization of the business operation and to contribute Tax in the
later days for its growth, we will be obtaining a Tax Identification Number from
Bureau of Internal Revenue. The business name and the employees will be
registered in the Social Security System for benefits. Having more than five
employees from the business we will be registering to the Department of Labor
and Employment. The business name to the Bureau of Domestic Trade and the
Department of trade and Industry (BDT-DTI).

39
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Organizational Structure

MANAGER

BARISTA CASHIER

HELPER HELPER

Functional Organizational Structure

Banana Café business is located in Centro Sur, Gattaran, Cagayan. The

manager is the one who will monitor all the operation of the business and to be
followed by the cashier who will monitor the inflow and outflow of the cash of
the business and a barista who will be in charge for the preparation of coffee and
lastly, the helpers are assigned in the production, process of the business and
customer service.

40
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Job Qualifications
Position No. of Qualifications
Person

Manager 1  Bachelor’s Degree in Accounting, Financing

or Business CPA or CMA preferred but not
required.

 Have a leadership skill to keep employees

motivated

 Time Management

 Analytical Skills

 Speaking and Writing

 Math and budgeting

 Decision Making Skills

Cashier 1  College Graduate

 Customers Service or Cashier Experience

 Computer Skills

 Courteous approach to resolving

complaints

 Ability to handle transactions accurately

and responsibly

Barista 1  Ability to problem solve quickly

 Strong Customer Service and
Communication skills

41
 Republic of the Philippines
Cagayan State University
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

 Ability to follow directions

 Reliable

 Honest

 A passion for serving

 Excellent People Skills

Helper 2  Proven work experience as a waiter or
waitress

 Basic Math skills

 Flexibility to work in shift

 High School Diploma

 Active Listening

 Effective communication skills

42
 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Company Policy

1. Each of the individuals should be accountable in managing and operating the

business.

2. Cleanliness of the shop inside and out should always be observed.

3. Proper waste disposal and segregation in production.

4. Raw materials and supplies of product are strictly inspected.

5. Unauthorized person is strictly not allowed to enter the counter and kitchen
premises.

6. Salary and Wages will be given to employees in time.

Compensation Package

The people who run the business are crucial because without them, the
company would not be able to function. The business will be unable to continue
operating normally without them. In exchange for their services, they are paid a
salary and wages. They work for the benefit of the company. Not only would
having a well-planned compensation program assist the company, but it would
also benefit the employees, but also the entire company. Wages are paid to
employees on a regular basis. Every month on the 15th and at the end of the
month. The wage rates that will be used are determined by the current minimum
wage legislation.

43
 Republic of the Philippines
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Salaries
Position Daily Monthly

Manager Php 384.6 Php 10000

Cashier Php 230.77 Php 6000

Barista Php 230.77 Php 6000

Helper Php 192.3 Php 5000

Employee Benefits

• All employees of the business are covered with SSS, PhilHealth & Pag-lbig.
• All employees of the business are entitled for a maternity or fraternity
leave.
• All employees of the business are entitled for 13" month pay, 5-days
incentive,
• Christmas bonus & performance bonus.
• All employees of the business are entitled for sick leave with pay.

Projected Time Table (Gantt Chart)

Gantt charts are a type of bar chart that depicts a project in theory. It
depicts the beginning and end dates of the terminal elements and a project's
summary aspects. The potential owners should figure out how much time they'll
require in the execution of the aforementioned chores in order to prevent
wasting time expenses incurred as a result of work repetition. The Gantt chart is
shown in the table on the following page. The planned Banana Cafe is depicted in
this diagram.

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 Republic of the Philippines
Cagayan State University
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

ACTIVITIES AUG SEPT OCT NOV DEC JAN

1.Organizational Planning

2. Acquisition of Funds

3. Find Business Location

4. Sign the Contract of Rent

5. Apply Business Permit

6. Purchase Furniture,
Equipment, and Products

7. Finding Supplier of Raw

materials

8. Hiring of Employees

9. Grand Opening

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 Republic of the Philippines
Cagayan State University
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

CHAPTER FIVE

V. FINANCIAL STUDY

Major Assumptions

1. Sales demand increases 10% per year

2. Raw materials increases 5% per year
3. 50% of net income will be distributed after 3 years.
4. The income tax rate is 20%.

Initial Capital Requiremnet

The partners agreed to contribute an equal sharing of capital in amount of

Php 100,00.00 each.

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 Republic of the Philippines
Cagayan State University
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

PROJECTED INCOME STATEMENT FOR THE YEAR

ENDED, DECEMBER 31, 2022-2024
Notes 2022 2023 2024
Sales 11 2,633,280.00 2,896,608.00 3,186,268.00
Less: Cost of Goods Sold 12 448,668.00 472,734.00 499,206.6
Gross Income 2,184,612.00 2,423,874.00 2,687,061.4

Less: Operating Expenses

Rent Expense 2 120,000 120,000 120,000

Salaries Expense 3 192,000 192,000 192,000
Promotional Expense 5 2,600 2,600 2,600
Utility Expense 4 108,000 108,000 108,000
Permit and Licenses 7 5,969 5,969 5,969
Depreciation Expense 10 11,666.65 11,666.65 11,666.65
Total Operational 440,235.65 440,235.65 440,235.65
Expenses
Income Before Tax 1,744,376.35 1,983,638.35 2,246,825.75
Less: Income Tax 348,875.27 396,727.67 449,365.15
Net Income 1,395,501.08 1,586,910.68 1.797,460.6

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

PROJECTED STATEMENT OF CASHFLOW FOR THE YEAR

ENDED, DECEMBER 31, 2022-2024
Notes 2022 2023 2024

Cash Inflows

Cash, Beginning 1,934,167.73 3,526,275.06

Partners Contribution 600,000

Sales 11 2,633,280 2,896,608 3,186,268

Total Cash Inflows 3,233,280 4,830,775.73 6,712,543.06

Purchased of Fixed Assets 54,500

Less: Cash Outflows

Purchased of Raw Materials 1 240,660 252,696 265,330.08

Packaging Expense 6 16,008 16,008 16,008

Salary and Wages 3 384,000 384,000 384,000

Permit and Licenses 7 5,969 5,969 5,969

Furnitures and Fixtures 8 18,500 18,500 18,500

Promotional Expense 5 2,600 2,600 2,600

Rent Expense 3 120,000 120,000 120,000

Utility Expense 4 108,000 108,000 108,000

Income Tax 348,875.27 396,727.67 449,365.15

TOTAL Operating 1,299,112.27 1,304,500.67 1,345,102.15

Expenses
Cash Balance, End 1,934,167.73 3,526,275.06 5,367,440.91

Currency: Philippine Peso

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 Republic of the Philippines
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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

SURFRIESING
PROJECTED STATEMENT OF FINANCIAL POSITION FOR THE
YEAR ENDED, DECEMBER 31, 2022-2024
2022 2023 2024
Assets
Current Assets
Cash 1,934,167.73 3,526,275.06 5,367,440.91
Total Current 1,934,167.73 3,526,275.06 5,367,440.91
Assets

Non-Current Assets

Furniture and 18,500 18,500 18,500

Fixtures
Tools and 45,886 45,886 45,886
Equipment
TOTAL 64,386 64,386 64,386
Less: Accumulated 11,666.65 23,333.3 34,999.95
Depreciation
Total Non- 52,719.35 41,052.7 29,386.05
Current Assets
Total Assets 1,986,887.08 3,567,327.76 5,396,826.96

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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Notes to Financial Statement

NOTE 1: Raw Materials
Item Unit Cost Monthly Annual Requirement
Requirement

Quantity Amount Quantity Amount

Banana 10.00 180 kg 1800 2160 kg. 21600
Flour 700.00 2 sacks 1400 24 sacks 16800
Evaporate Milk 200.00 5 boxes 1000 60 boxes 12000
Vanilla Extract 250.00 1 box 250 12 boxes 3000
Vinegar 45.00 5kls. 225 60kls. 2700
Cheese 960.00 1 box 960 12 boxes 11520
Egg 160.00 4 dozen 640 48 dozen 7680
Bread Crumbs 480.00 1 box 480 12 boxes 5760
Oil 300.00 2 gallon 600 24 gallon 7200
Dairy Milk 500.00 5 boxes 2500 60 boxes 30000
Brown Sugar 40.00 5kls. 200 60kls. 2400
Powdered Coffee 5,000.00 25 sacks 10,000 24 sack 120000
Beans
TOTAL 20,055 240660

NOTE 2: Rent Expenses

2022 2023 2024

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

120000 120000 120000

NOTE 3: Salary Expenses

Position Monthly Cost Annual Cost
General Manager 10,000 120,000
Cashier 6,000 72,000
Barista 6,000 72,000
Helper 5,000 60,000
Helper 5,000 60,000
TOTAL 32,000 384,000

NOTE 4: Utility Expenses

Bills Monthly Cost Annual Cost
Water 1,500 18,000
Electricity 2,500 30,000
Maintenance 5,000 60,000
TOTAL 8,500 108,000

NOTE 5: Promotional Expenses

Quantity Price Amount
Flyers 300pcs. 5 1,500
Tarpaulin 2pcs. 300 600
Sales promotion (free 50 10 500
taste)
TOTAL 2,600

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

NOTE 6: Packaging
Item Quantity Price Monthly Annual
Cost
Paper Bag 5 packs 100 500 6,000
Paper Cup 7 packs 45 315 3,780
Plastic Lead 7 packs 30 210 2,520
Banana Cheese Roll 150 pcs. 309 309 3,708
Holder
TOTAL 1,334 16,008

NOTE 7: Permit and Licenses

Amount
DTI Registration Fee 250
Barangay Clearance 500
BIR Registration Fee 500
Police Clearance 70
Business Permit 4,649
TOTAL 5,969

NOTE 8: Furnitures and Fixtures

Item Quantity Price Amount
Table 5 700 3500
Chair 15 300 4500
Ceiling Fan 2 750 1500
Bookshelf 1 3000 3,000
Long Cabinet 1 6000 6,000

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Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

18,500

NOTE 9: Tools and Equipment

Item Quantity Price Amount
Refrigerator 1 15,000 15,000
Automatic Drift Coffee Maker 1 6,000 6,000
Tray 5 20 100
Measuring Spoons 10 20 200
Plates 50 20 1,000
Ice Coffee Glass 20 50 1,000

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 Republic of the Philippines
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ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Straw 100 0.64 64

Wooden Coffee Stirrer 200 0.34 68
Mugs 30 40 1,200
Tissue 20 22 440
Paper Cup (20 oz) 50 7 350
Frying Pan 2 250 500
Strainer 1 50 50
Food Tong 2 50 100
Stove (Double Barner) 1 1,500 1,500
LPG 1 1,000 1,000
Dishwashing Liquid 2 180 360
Sponge 5 6 30
Rags 10 15 150
Trashcan 4 99 396
Dustpan 2 49 98
Mop 1 280 280
Books and Magazines 10 100 1,000
Computer Set 1 15,000 15,000
TOTAL 45,886

NOTE 10:Depreciation Expense

Item 2022 2023 2024
Furnitures and 4,999.99 4,999.99 4,999.99
Fixtures
Tools and Equipment 6,666.66 6,666.66 6,666.66
TOTAL 11,666.65 11,666.65 11,666.65

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

NOTE 11: Sales

Cooking oil

| Total Sales per

Total Cost per

Total Cost per

Price per Item
Bread Crumbs
Vanilla Extracts

item

Year
|Banana

Cheese

year
Sugar
Flour

Eggs
Milk

Banana
Cheese
Roll 1.00 0.25 0.25 0.50 0.25 0.25 0.50 1.00 2.00 6.00 10.00 371,592 619,320

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Steamed Milk

Foamed Milk

Brown Sugar

Purified Water
Powdered Coffee Beans
Espresso

Capuccino 2.00 2.00 2.00 3.00 1.00 10 20 570,960 1,141,920

Coffee Latte 1.00 1.00 1.00 3.00 1.00 7 15 286,104 613,080

Barako 0.50 3.00 0.50 4 10 103,584 258,960

Total 1,332,240 2,633,280

NOTE 12: Cost of Goods Sold

2022 2023 2024

Beg. Inventory

Add:

Purchase of Raw Materials 240,660 264,726 291,198.6

Direct Labor 192,00 192,000 192,00

Overhead:

Packaging 16,008 16,008 16,008

Cost of Goods Sold 448,668 472,734 499,206.6

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 Republic of the Philippines
Cagayan State University
ANDREWS CAMPUS
Caritan, Tuguegarao City, Cagayan
www.csu.edu.ph

COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

CHAPTER SIX

VI. APPENDIX

Sample Questionaire

Dear respondents:

Blessed day, We, the students of College Business Entrepreneurship &

Accountancy of Cagayan State University- Andrews Campus taking up Bachelor of
Science in Business Administration major in Marketing Management. We are
going to plan a business named Banana Café, a cafeteria which offers Banana
cheese rolls that complement with different type of coffee mixes, it is a coffee
stall where you can get a cup of smile satisfaction in order for us to give what is

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

the best for you, may we ask for your honest response to our questions. Thank
you for your cooperation.

Name(optional):

Age:

Gender:

Location:

Employment statua:

1. Are you fond of eating sweet ang cheesy snacks?

o YES.

o NO

2 What kind of snack do you usually prefer ?

o Fruits o Cookies o
Pastries o Bread /
Sandwiches

3. How often do you buy your snacks?

o Once a day
o Twice a
day o Twice
in a week o

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Thrice in a
week

4. If we offer Banana cheese rolls, would you buy?

o Yes o No o If
no why? :

5. How much are you willing to pay for our Banana cheese rolls ?

o 10 o 15.

o 20 o 25

6. What beverages would you prefer to complement in our Banana cheese

rolls ?

o CHOCOLATE

o COFFEE

o FRUIT TEA

7. What flavor of coffee would you prefer?

o CAPPUCCIN
O o
BARAKO o
COFFEE
LATTE

8. How much are you willing to pay for our coffee?

o 20 o

10
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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

o 15

9. If we were to sell a banana cheese rolls with coffee, would you buy it?

o Yes o No

10. How much are you willing to pay for our product ?

o 45-50

o 55-60 o
60 and up
Summary of
Result

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

CURRICULUM VITAE

Name: Abigail S. Bacud

Date of Birth: August 22, 1999
Place of Birth: Bangad, Santa
Maria Isabela
Address: Bangad, Santa Maria,
Isabela
Age: 22 years Old
Civil Status: Single
Religion: Roman Catholic
EDUCATIONAL ATTAINMENT
College: Cagayan State University- Andrews Campus
Senior Highs School: Lemu National High School
Junior High School: Buenaventura G. Masigan National High
School Elementary: Bangad Elementary School

Name: Karen Kae A. Bergonia

Date of Birth: September
25, 1999
Place of Birth: Alcala, Cagayan
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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Address: Zone 5, Malalatan, Alcala, Cagayan 3507

Age: 22 years Old
Civil Status: Single
Religion: Born Again Christian
EDUCATIONAL ATTAINMENT
College: Cagayan State University- Andrews Campus
Senior Highs School: Afusing National HighSchool
Junior High School: Afusing National HighSchool
Elementary: Malalatan Elementary School

Name: Geraldine D. Casay

Date of Birth: November
13 1999
Place of Birth: Quezon City
Manila
Address: Zone 7 Pina Weste Gattaran Cagayan 3507
Age: 22 years Old
Civil Status: Single
Religion: Roman Catholic
EDUCATIONAL ATTAINMENT
College: Cagayan State University- Andrews Campus
Senior Highs School: Aparri East National HighSchool
Junior High School: Calaogan Dackel National HighSchool
(ANNEX)

Elementary: ALBA Elementary School

Name: Clarizel T Duyao

Date of Birth: June 01, 1999

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Place of Birth: Baraccaoit Gattaran Cagayan

Address: Zone 1 Baritagan Baraccaoit, Gattaran, Cagayan ,
3508
Age: 22 years Old
Civil Status: Single
Religion: Roman Catholic
EDUCATIONAL ATTAINMENT
College: Cagayan State University- Andrews Campus
Senior Highs School: Calaoagan Dackel National High School
Junior High School: Gattaran National Trade School
Elementary: Gattaran East Central School

Name: Sheila Mae D. Peralta

Date of Birth: December 18, 1999
Place of Birth: Calaoagan Bassit, Gattaran, Cagayan
Address: Zone 6 Cunig, Gattaran Cagayan 137
Age: 22 years Old
Civil Status: Single
Religion: Roman Catholic
EDUCATIONAL ATTAINMENT
College: Cagayan State University- Andrews Campus
Senior Highs School: Calaoagan Dackel National
HighSchoool

Junior High School: Calaoagan Dackel National HighSchool

Elementary: Cunig Elementary School

Name: Arcie B. Taguinod

Date of Birth: August 5, 2000

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COLLEGE OF BUSINESS, ENTREPRENEURSHIP AND ACCOUNTANCY

Place of Birth: Divisoria Enrile, Cagayan

Address: Zone 4, Divisoria Enrile, Cagayan-3501
Age: 21 years Old
Civil Status: Single
Religion: Roman Catholic
EDUCATIONAL ATTAINMENT
College: Cagayan State University- Andrews Campus
Senior Highs School: Lemu National High School

Junior High School: Lemu National High School

Elementary: Divisoria Elementary School

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