Establishing an Internet Cafe @ Poblacion, San Isidro, Bohol

7 July 2016

Introduction The first computer network was used by the U. S military in the year 1960. It was used for command and network with only one central authority to convey message from one place to another. However, its usefulness was limited as to its capacity to transmit. It took several years to develop powerful and sophisticated computers until it became what it is today. In the 70’s and 80’s, many group of people possessed computers. There were already network which became public domain and it came to be known as the internet.

The fast changing technology that people embrace encourages them to avail the benefits of Internet services for their day to day activities. People tend to depend on convenient means of doing things with the aid of internet as life becomes more complicated. Internet changes our lives enormously. In fact, according to Internet World Stats, the estimated internet users worldwide are 2,405,518,376 as of June 30, 2012. The estimated number of users represents 34. 3% of the world’s population. In the Philippines, the internet connection began on March 29, 1994. The growth of internet in the country was very significant.

Establishing an Internet Cafe @ Poblacion, San Isidro, Bohol Essay Example

However, there were many obstacles associated with the growth of internet including inequity in the distribution of internet throughout the country and corruption in the government. But these did not hinder the Filipinos to stop the internet. As years passed by, many Filipinos became users, which is a proof of the continuing development of the Internet connection in the country. Majority of the total population in the Philippines are netizens. According to Internet World Stats, the estimated users in the Philippines are 33,600,000 which represent 32. 4% of its total population.

Being a developing country, not all can afford to have their own computers with internet access. Many would prefer to visit internet cafes to avail their services because it’s basically and practically cheaper than acquiring personal computers and laptops. In the province of Bohol, many people are users of the internet. It is evident because of the increasing number of Internet shops in the province. However, most of the Internet shops are located in the city thus, very limited to nearby barangays and towns. Only a few engages in internet shop businesses in municipalities or towns because of the risk of having no customers which

will then result to unprofitable investment. We, the researchers of this study, therefore, agreed to make a research to determine the marketability, feasibility and profitability of establishing an internet cafe at Poblacion, San Isidro, Bohol. Another is to determine the internet cafe product and services that will yield a better return on investment. Review on Related Literature The Internet is a global system of interconnected computer networks that use the standard internet protocol suite (TCP/IP) to serve several billion users worldwide.

It is a network that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic, wireless, and optical networking technologies. The Internet carries an extensive range of information resources and services, such as the inter-linked hypertext documents of the World Wide Web (WWW), the infrastructure to support email, and peer-to-peer networks (www. myenglishpages. com). The Internet, for some people, is the way to live.

With a diverse source of information and access to the latest breaking events in the world, knowledge can be attained with a simple click. The Internet, undoubtedly, has profound potential. The global linkage allows us to connect with other individuals and share our thoughts and ideas. Social networking sites are one of the available means for global linkage like Facebook, Twitter, Tumbler and Multiply. This trend started with the rise of forums, chat services and file and media sharing sites, and combining these elements to create an integrated experience (Narciso, 2012).

As Computer World Philippines magazine cited, the world becomes smaller because of Internet that connects people. The birth of various social networking sites made this possible. A smaller world also means faster information dissemination. In Asia, Social networking and gaming are very popular in the Internet Cafes. This popularity has helped create a strong demand and sustainable revenue model among most Internet Cafes. In the Philippines, the number of Filipinos who are using Internet is increasing each year.

More and more Filipinos preferred to use Internet as a means of obtaining news and information rather than listening to radio or reading newspaper and magazines, according to a study conducted by TNS (Taylor Nelson Sofres), a global research company. Recently, “TNS Digital Life 2012” showed that 45% of Filipino respondents connected to the Internet compared to 36% who listened to radio, 12% who read newspapers, and 4% magazines. The study was based on interviews with 72,000 consumers in 60 countries worldwide from November 2011 to January 2012.

With the tremendous consumption of internet, it has a major impact on every Filipino’s social life. They spend more time behind the PC either at home or at Internet Cafes than interacting with physical human beings face to face. They would rather sit online than get out for fresh air and exercise and instead of going to libraries, they just go “Google it” and any problem can be catered and solved. In addition to the study conducted by TNS, it also showed that majority of Filipinos accessing the Internet were children, teens and young adults.

Debell and Chapman (2006) concluded that Internet use promotes cognitive development in children, specifically the area of visual intelligence, where certain computer activities-particularly games-may enhance the ability to monitor several visual stimuli at once, to read diagrams, recognize icons, and visualize spatial relationships. According to a series of benchmarking studies, academic achievement among poor rural students lags drastically behind their urban counterparts. However, currently very few poor rural schools have functioning computer facilities.

With this, establishing an Internet Cafe could be of a great help as long as the place can be reached by the Internet Connection. As cited in in a website, one of the tips subsequent to assessment whether the place is good site to put-up with a signal and prior to establishment, is to ensure that there must be a maximum of 2 internet cafe in the target rural area (www. icafeproject. com). With all the consideration to the above requisites, we conclude that this study would be feasible in our target area, Poblacion, San Isidro, Bohol for there was no existing Internet Cafe in the said place.

Statement of the Problem This study entitled “Establishing an Internet Cafe at Poblacion, San Isidro, Bohol” is primarily conducted to determine the profitability of this kind of business in the municipality. We take the opportunity to make this study because of the fact that this town is still untouched in terms of internet businesses. This study also considers the fact that the town is far from the city where most of the internet shops are located, thus giving the local members of the municipality an easier access to the internet.

And finally, this study is necessary to determine the chances of success or failure of this kind of business for those aspiring to establish this business in the town of San,Isidro, Bohol. This study specifically sought to answer these sub-problems: Management Aspect: How would this business be managed and maintained? Marketing Aspect: What will be the approach to obtain target buyers? Technical Aspect: What is the best location and computer technology to be acquired in order to satisfy the increasing demand of customers? Financing and financial Aspect:

What are the ways in which the business can maximize profit at the same time minimize its cost? Socio-economic Aspect: What are the ways in which the community members especially the students as well as the municipal government can benefit this business? Significance of the Study This study serves as a preparation for the effectiveness of establishing an internet cafe at Poblacion, San Isidro, Bohol. It signifies the accumulation of different factors that contribute the profitability of this project proposal, obtaining reliable resources and sufficient knowledge to satisfy the needs of the public.

Internet cafe, as proposed, will be established in the heart of the municipality to provide the awaited service to the people. This cafe is said to be the first ever cafe established in the municipality, hence, there are lots of benefits it may contribute: providing the people internet access to different social networking sites; efficient and easy connections; modern way of enjoyment as provided by different online games; encoding and printing documents; effective and reliable way of doing business transactions and others.

The establishment of this proposal also caters not only the services it provides but the outcome of this project also increases the income of the government by way of paying taxes and licenses, employment opportunities and like. For better planning, this study provides the proper allocation of what particular field we invest a big attention for the different areas: management, marketing, technical, financing and financial and socio-economic to satisfy customers and to be more profitable. Research Design Research Methodology and Data Gathering Procedure

The research method used in conducting the feasibility study is the descriptive research method. This research method provides a comprehensive in-depth analysis of the business being studied and it serves as a fact-finding tool that permits adequate interpretation of the results of the survey conducted by the researchers. It is a kind of research method that gives information about the present situation particularly on the feasibility of the said business. Research Environment Poblacion is one of the twelve (12) Barangays of San Isidro, Bohol.

It is located at the heart of the Municipality. It is composed of 1,684 residents, divided into 15 puroks. The area has few commercial establishments: school, church, market and municipal hall. Most of the residents’ sources of living are from white-collar jobs and agriculture. Most of the high-income earners in the said municipality are living in the Poblacion. Sources of Data The primary sources of data used in this study are the questionnaires and interviews from the people of Barangay Poblacion, San Isidro, Bohol.

These questions and interviews are essential in obtaining valid and accurate data which is not found in books, magazines, periodicals, and others. The secondary sources of data used in this study include books, some internet provided information, dictionaries, magazines and other feasibility studies related to the topic and statistical data coming from the local government of Poblacion, San Isidro, Bohol . Research Subjects The researchers randomly selected the people of Barangay Poblacion, San Isidro, Bohol as respondents of this study.

This is because the proponents of this feasibility believes that those chosen respondents can give the most appropriate information’s answers about the proposed business in relation to the present condition of the business industry. Sampling Technique Used The sampling technique used by the researchers is the Cluster Sampling Technique. The researchers divides the population into separate groups called clusters, then a simple random sample of clusters are selected from the population. The population of the selected Barangay is broken down into clusters by purok.

Poblacion, San Isidro, Bohol is composed of 15 Puroks. 50% of the Puroks will be chosen through Lottery Sampling. In order to get an accurate representative sample size, 12 members will be selected from the chosen puroks through assignment of first number. Using the Slovin’s Formula having a margin of error of 10% the following were computed: n=_ N___ 1+N? 2Where: n=sample size N=total population ?=margin of error N= 1,684______ 1+ (1,684*0. 102) = 1,684_ 1+16. 84 =1,684_ 17. 84 =94. 39 or 94 Research Instruments

The research instruments used in gathering data includes the use of questionnaire, interview and some library techniques. Questionnaire is the most common method of collecting data and serves as a written reference of the actual information necessary for the study. It consists of sets of questions in written form. Other library techniques were used such as the use of related books, magazines and related feasibility studies. Along with the survey questionnaires is an actual interview to provide first hand information from the respondents to better assess and analyze the present situation.

Observation of some internet businesses was also done to gain more ideas regarding our proposed project. Operational Definition of Terms 1. Netizens – A person who is a frequent or habitual user of the Internet. 2. TCP/IP – Transmission Control Protocol / Internet Protocol, it is arguably the single most important computer networking technology. The Internet and most home networks support TCP/IP as the “language” computers use to find and connect with each other. 3. Hypertext-the presentation of information as a linked network of nodes which readers are free to navigate in a non-linear fashion.

It allows for multiple authors, a blurring of the author and reader functions, extended works with diffuse boundaries, and multiple reading paths. 4. TNS (TAYLOR NELSON SOFRES) PHILIPPINES, INC. -TNS Philippines is part of Kantar, one of the worlda?? s largest insight, information and consultancy groups. It currently stands as the leading customised marketing research company in the Philippines offering full service operations covering all aspects of marketing research and consulting, as well as in-house field and data processing.

Our focus is to understand our clientsa?? marketing problems and design researches that make sure our analysis and recommendations are relevant and actionable for marketing decisions. 5. Cognitive development – refers to the development of the ability to think and reason. Children (6 to 12 years old) develop the ability to think in concrete ways (concrete operations), such as how to combine (addition), separate (subtract or divide), order (alphabetize and sort), and transform (change things such as 5 pennies=1 nickel) objects and actions.

They are called concrete because they are performed in the presence of the objects and events being thought about. 6. Optical networking – uses thin glass or plastic optical fiber to transmit information in the form of light pulses. It is far more reliable and offers greater transmission capacity than conventional copper-wire networks. 7. SONET and Synchronous Digital Hierarchy (SDH) – the most common optical transport protocol standards used in optical networking. They both meet the needs of traditional voice traffic, where all traffic is high-priority and patterns are generally predictable.

8. Facebook – an online social networking service. Its name comes from a colloquialism for the directory given to students at some American universities. [5] Facebook was founded on February 4, 2004 by Mark Zuckerberg with his college roommates and fellow Harvard University studentsEduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes. [6] The founders had initially limited the website’s membership to Harvard students, but later expanded it to colleges in the Boston area, the Ivy League, and Stanford University.

It gradually added support for students at various other universities before it opened to high-school students, and eventually to anyone aged 13 and over. Facebook now allows anyone who claims to be at least 13 years old to become a registered user of the website. [7] 9. Twitter – an online social networking and microblogging service that enables users to send and read “tweets”, which are text messages limited to 140 characters. Registered users can read and post tweets, but unregistered users can only read them. Users access Twitter through the website interface, SMS, or mobile device app.

[10] Twitter Inc. is based in San Francisco and has offices in New York City, Boston, San Antonio and Detroit. [ 10. Tumblr – stylized in its logo as tumblr. , is a microblogging platform and social networking website founded by David Karp and owned by Yahoo! Inc. The service allows users to post multimedia and other content to a short-form blog. Users can follow other users’ blogs, as well as make their blogs private. [4][5] Much of the website’s features are accessed from the “dashboard” interface, where the option to post content and posts of followed blogs appear.

11. Internet – a global network connecting millions of computers. More than 100 countries are linked into exchanges of data, news and opinions. According to Internet World Stats, as of December 31, 2011 there was an estimated 2,267,233,742 Internet users worldwide. This represents 32. 7% of the world’s population. 12. Multiply – a social networking service with an emphasis on allowing users to share media – such as photos, videos and blog entries – with their “real-world” network. The website was launched in March 2004 and is privately held with backing

by VantagePoint Venture Partners,Point Judith Capital, Transcosmos, and private investors. [2] Multiply had over 11 million registered users. The company was headquarterd inBoca Raton, Florida but moved to Jakarta, Indonesia early in 2012 and recently announced intentions to switch to e-commerce, dropping the social networking aspect entirely. Quantcast estimates Multiply had 2. 47 million monthly U. S. unique visitors at their peak on July 30, 2012the quality, state, or capability of being connective orconnected ; especially : the ability to connect to or communicate with another computer or computer system 13.

Computers the ability to link to and communicate with other computer systems, electronic devices,software, or the Internet: This laptop has limited connectivity. 14. Connectivity- the means by which individual terminals, computers, mobile devices, and local area networks connect to the global Internet 15. Network – a group of two or more computer systems linked together. 16. Computer- is a general purpose device that can be programmed to carry out a set of arithmetic or logical operations. Since a sequence of operations can be readily changed, the computer can solve more than one kind of problem. 17.

Social networking service- an online service, platform, or site that focuses on facilitating the building of social networks or social relations among people who, for example, share interests, activities, backgrounds, or real-life connections. 18. Social network- is a social structure made up of a set of social actors (such as individuals or organizations) and a set of the dyadic ties between these actors. The social network perspective provides a set of methods for analyzing the structure of whole social entities as well as a variety of theories explaining the patterns observed in these structures.

The study of these structures uses social network analysis to identify local and global patterns, locate influential entities, and examine network dynamics. 19. Electronics-deals with electrical circuits that involve active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies. 20. Google- is an American multinational corporation specializing in Internet-related services and products. These include search, cloud computing,software, and online advertising technologies. [6] Most of its profits are derived from AdWords.

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