Project Feasibility Study

Topics: Coffee, Types of business entity, Coffee preparation Pages: 10 (1629 words) Published: May 24, 2013
Fawaq International School
Riyadh, Kingdom of Saudi Arabia

Project Feasibility Study

In partial fulfillment of the requirements in
Technology and Livelihood Ecucation (TLE) IV

Submitted by:
Danielle Aimee Salaya Catapang
IV – Universe

Submitted to:
Ms. Herna S. Bautista
TLE Teacher

March 09, 2011
Project Feasibility Study

* I.Introduction

A.Name of Business
The name of the café is HotSpot.
B.Type of Business
The type of this business is Individual Proprietorship. This type of business entity is owned and run by an individual. In this type, there is no legal distinction between the owner and the business. Since this is the simplest among all the types of business, I chose to run this type. C.Location

Olaya District, Riyadh, Kingdom of Saudi Arabia. The businesswoman chose that location because she observes that there are many students and office employees that pass by there.

II.Marketing Plan Preparation

A.Product Name/ Description
The businesswoman will be putting up a coffeehouse which she will call “HotSpot.” This name was chosen for hot spot means a lively entertainment place. In addition to that, there will also be wireless internet connection. The shop will have three parts; the first will be a soundproof room wherein music will be played, second will be a quiet room for the customers who prefer to stay in a quiet place, and third will be a smoking area. B.Target Market

People within the vicinity – students, office employees, and passers C.Positioning Target
There are a number of popular coffee shops in Riyadh. The most popular is the “Starbucks.” Others are Seattle’s Best, Coffee Day, Pascucci, and Lenotré.

D. Objectives
1.To come up with a sales target of 120,000 SAR
2. To come up with a sales budget of 80,000 SAR

E. Marketing Mixed Strategy
1. Pricing
| cold| hot |
short| 10.00 SR| 5.00 SR|
tall| 12.00 SR| 7.00 SR|
grand| 15.00 SR| 10.00 SR|

| | |
Cookie| 3.00 SR| |
Cake| 5.00 SR| |
| | |

2. Promotion
a.As the name of the business implies, the costumers will enjoy the wireless fidelity or what we usually call Wi-Fi inside the café. They will also be entertained because there will be music played.

b.The forms of advertising that will be used are newspaper ad, flyers, official website

III. Production Planning

A.Marketing Plan
The type of business is individual proprietorship. The businesswoman will be naming it “HotSpot.” She’ll be having three parts of the place – a soundproof room, a quiet room, and a smoking area. Her business will be located at Olaya District, Riyadh, Kingdom of Saudi Arabia. Her customers will be the people within the vicinity (students, teachers, office employees, and the like) and passers.

B.Capacity of the Enterprise to Produce
1. Financial Capacity
The businesswoman thinks that she has enough capital to put up my business. She has some savings.
2. Technical Capacity
The businesswoman will be using several coffee machines to make the coffee and oven to bake the cookies and the cake. She’ll also be using refrigerator and freezers for storage purposes. She will also use sound system and broadband for the wireless internet connection. And of course, to be able to come up with all the recorded finances, she will be using a personal computer (laptop or desktop).

Aside from the businesswoman, she will have a couple of employees which will include the cook, the cashier, the waiter, and the janitor.
C.Steps in Production Planning
For the coffee to be made, the businesswoman will be using the coffee machine. All I need for that are coffee beans. To prepare the coffee itself, she will need some milk, sugar, syrup (caramel, chocolate, and strawberry), whipped cream, and chocolate chips. For the cookies and the cake, she will be using the oven. She’ll be needing flour, sugar, salt, vanilla, cookie crumbs,...
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