DRAGON’S FITNESS GYM

A FEASIBILITY STUDY

Presented to
the Faculty of the School of Business and Accountancy
Pilgrim Christian College
Cagayan de Oro City

In Partial Fulfillment
of the Requirements
in
Accounting 16c – Feasibility Study

By:

Ernest Joy C. Apag

Cyle B. Dimacutac
Crystalyn P. Macatual
Jamilah Macabalang
Albert P. Sagayno
Mark John D. Sambaan
Jessela T. Valiente
Frich Faretawn T. Vedra
Cyril Niño J. Virtudazo

Submitted to:

RUINO L. RENOBLAS, CPA, MBA

October 2019
 APPROVAL SHEET

This feasibility study entitled “DRAGON’S FITNESS GYM”, prepared

and submitted by Ernest Joy C. Apag, Cyle B. Dimacutac, Crystalyn P.
Macatual, Jamilah Macabalang, Albert P. Sagayno, Mark John Sambaan,
Jessela T. Valiente, Frich Faretawn T. Vedra, Cyril Niño J. Virtudazo in
partial fulfillment of the requirements for the course ACCOUNTING 16C has
been examined recommended for oral examination/defense.

RUINO L. RENOBLAS, CPA, MBA

Adviser

PANEL OF EXAMINEES

Approved by the panel of examiners in partial fulfillment of the

requirements for the course ACCOUNTING 16C with a grade of ____.

RUINO L. RENOBLAS, CPA, MBA

Chairperson

Member

Member

Accepted and approved in partial fulfillment of the requirements of the

requirements for the course ACCOUNTING 16C.

ESTERLITA D. BATION, MBA

OIC/Dean, School of Business and Accountancy

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 ABSTRACT

The purpose of this feasibility study was to explore the possibility of

opening a Physical Fitness Gym that offers different indoor activities---
physical workouts, defense classes and zumba. Our target markets are the
students, young professionals and the middle aged people located in
Cagayan de Oro City. The Dragon’s Fitness Gym is located at the heart of
the city, Divisoria. We specifically situated in that area to attract more clients
that are interested in living the healthier lifestyle, the place is also very
accessible to people. The criminal rate in the city is rapidly ascending thus
we feel the need to provide defense classes to help fellow Kagayanons feel
safe and secure wherever they go. We want them to know that no matter
what gender you are, you can defend yourself enough until you can call for
help. We also have zumba classes for those people who do not want to exert
so much effort using machines, through this class we can also get to know
other people and might form camaraderie along the way. In this way,
exercising becomes less of a struggle but more fun. For clients who want to
really enroll in our fitness program, we provide much different kind of
packages. We offer discount rates for our loyal clients and give discounts to
students who want to change their lifestyles. If you don’t want to avail the
membership promos, we accept walk-ins that give them enough packages to
choose from. The Dragon’s Fitness Gym aims to inspire people to change
their lifestyles into a healthier way that will help them guarantee a longer life.
Disclaimer: all rates and expenses seen in this study are reality based. We
did all possible researches to be able to give illustrations that actually apply
to existing fitness gyms.

Keywords: fitness, indoor activities, workouts, secure, camaraderie,

healthier

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 ACKNOWLEDGEMENT

This feasibility study would not be possible without the guidance and

help of several individuals, who, in one way or another, have contributed and

extended their valuable assistance for the success of this study.

The researchers would want to give appreciation to our adviser who

greatly shared his knowledge to us with patience and diligence in helping us

complete the necessary works throughout the study.

Also, we give thanks to our parents for their unconditional

understanding and for sharing their wisdom that inspire us to push beyond

our limits and as well as giving financial and moral support.

We give thanks to our friends and colleagues that spend their time

and consumed a lot of effort to help us make this feasibility study a success

within the limited time allotted.

Above all, we give our sincerest gratitude to our ALMIGHTY GOD in

securing our safety and furnishing us the necessary resources that leads for

the accomplishment of this study.

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 TABLE OF CONTENTS

Page

Title Page i

Approval Sheet ii

Abstract iii

Acknowledgement iv

Table of Contents v

List of Tables vii

List of Figures viii

I.THE BUSINESS

A. Executive Summary 1

B. Business Description 1

C. Business Legal Status 2

D. Project Background & History 3

E. Mission Statement 3

F. Vision Statement 4

G. Business Objectives 4

H. Organizational Development 6

II. MARKET STUDY 9

A. Demand and Market 10

B. Competitive landscape in Philippines Market 10

C. Marketing Strategies 11
D. Price/ Rates 11
E. Survey Results 12

III. TECHNICAL ASPECT

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 A. Plant Capacity 25
B. Materials And Equipment 27
C. Furniture and Fixtures 33
D. Location And Site 37
E. Project Engineering 37

IV. FINANCIAL ASPECT

Financial Assumptions 41

Statement of Financial Position 43

Statement of Financial Performance 44

Statement of Changes in Equity 45

Statement of Cash Flows 46

Notes to Financial Statement 47

Financial Ratios 49

V. SOCIO DESIRABILITY ASPECT

SWOT Analysis 50

References 53

Curriculum Vitae 54

Appendices

Job Description 64

Code of Conduct 73

Employee Benefits 85

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Salary Structure 86

Survey Questionnaire 87

Documentation 88

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 LIST OF TABLES

Title Page

Table 1.0 Percentage Distribution of Respondents According to Gender 13

Table 2.0 Frequency and Percentage Distribution of Respondents’

Age Bracket 14

Table 3.0 Frequency and Percentage Distribution of Respondents

According to their Occupation 15

Table 4.0 Frequency and Percentage Distribution of Respondents

According to their Monthly Income 16

Table 5.0 Frequency and Percentage Distribution of Respondents

If They Currently Go To Gym 17

Table 6.0 Frequency and Percentage Distribution of Respondents

On How Often they go to Gym 18

Table 7.0 Frequency and Percentage Distribution of Respondents

About Their Preferred Time to Visit to Gym 19

Table 8.0 Frequency and Percentage Distribution of Respondents

On How Much Are They Willing To Spend 20

Table 9.0 Frequency and Percentage Distribution of Respondents

According to their Preferred Amenities. 22

Table 10.0 Frequency and Percentage Distribution of Respondents

According to what form/forms of exercise do they

Currently participate in. 23

Table 11: Gym Equipment Quantity and Price 32

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 LIST OF FIGURES

Title Page

Figure 1.0 Percentage Distribution of Respondents according to Gender 13

Figure 2.0 Percentage Distributions of Respondents

According to Age Bracket 14

Figure 3.0 Percentage Distributions of Respondents

According to Occupation 15

Figure 4.0 Percentage Distributions of Respondents

According to Respondents’ Monthly Income 16

Figure 5.0 Percentage Distributions of Respondents

if they are currently goes to gym. 17
Figure 6.0 Percentage Distributions of Respondents
on How Often they go to Gym. 18

Figure 7.0 Percentage Distributions of Respondents

about their Preferred Time to Visit to Gym 19

Figure 8.0 Percentage Distributions of Respondents

on How Much they are willing to Spend 21

Figure 9.0 Percentage Distributions of Respondents

According to their Preferred Amenities 23

Figure 10.0 Percentage Distribution of Respondents according

to what form/forms do they currently participate in 24

Figure 11.1 3D First Level Floor Plan 25

Figure 11.2 2D First Level Floor Plan 26

Figure 12 Second Level Floor Plan 26

Figure 13 Building Perspective 27

Figure 14 Map 37