FAR EASTERN UNIVERSITY FERN COLLEGE

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A Study on Business Profitability of the Cren Top SnackHaus

For Future Expansion

A Business Research
Presented to the
Far Eastern University FERN College

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

By
BOBIS, John Romezel R.
BRILLANTES, Sophia Kyla D.
CALUB, Shane Abigail G.
MELARPIS, Michael I.
NITOR, Vanessa Eimee B.
TULANA, John David
FMG-22

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EXECUTIVE SUMMARY
This section is limited to 100-150 words (approximately 12-15
lines), singly spaced and must include at least four (4)
keywords.

Keywords: Solar systems, universe, aliens, space

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TABLE OF CONTENTS
Page
Executive Summary

UNIT I
INTRODUCTION
Chapter 1 Background of the Study
5
Introduction
5
1.1 Rational of the Study
6
1.2 Purpose of the Study
6
Chapter 2 The
7
2.1
7
2.2
7
2.3
7

Research Problem
Research Questions
Significance of the Study
Scope and Limitations

Chapter 3 Review of Related Literature

8
3.1 Theme 1 Review
8
3.2 Theme 2 Review
8
Chapter 4 Frameworks of the Study
10
4.1 Theoretical Framework
4.2 Conceptual Framework
4.3 Operational Framework
4.4 Operational Definition of Terms
12
UNIT II
RESEARCH METHODOLOGY
Chapter 1 Research Design
Chapter 2 Schedule and Organization
Chapter 3 Data Analysis Plan

10
10
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UNIT III FINDINGS, ANALYSIS, CONCLUSION &

RECOMMENDATIONS
Bibliography
Appendices
33
Examples only!
Appendix I:
Permit to Conduct the Interviews
37
Appendix II:Request for Pertinent Data
38
Appendix III:
Informed Consent for Research
Participants
39
Appendix IV:
Informed Consent for Research
Participation
Recruited Concept Mapping Participants
40
Appendix V:Survey Questionnaires
41
Appendix VI:
The Interview Protocol
44
Appendix VII:
The Interview Protocol for
Tutors/Reviewers 46
Appendix VIII:
The Interview Protocol
47
Appendix IX:
Timetable for Research
50
Appendix X:
Budget Proposal
51
Curriculum Vitae
52

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UNIT I
INTRODUCTION

CHAPTER I
Background of the Study

This chapter must include statements that strike

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

Introduction
Present an interesting scientific problem that the
research addresses or solves. Make clear why you need to do
more research on the problem identified. Provide sufficient
background information to help the reader understand the thesis
better. Cite literature and studies that relate to the present
investigation preferably the most recent and relevant ones.
Explain the coverage of the thesis, identifying which will be
included in the investigation and which will not. The introduction
in general will guide the reader what is expected to be found in
the thesis.

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1.1

Rationale of the study

Reason of the research

1.2

Purpose or objectives of the study

Why you are doing the research?

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CHAPTER 2
THE RESEARCH PROBLEM

Competition

between

the

food

business

establishments in the Philippines is a tough and an intense battle

for

the

dominance

in

the

Philippine

Food

Industry.

The

performance of these diners, however, does not rest entirely or

merely on the concession of the similar product line and
innovations each has to offer. Since the trends in foodservices
have emerged and developed from changes in the socio-cultural
environment in the Philippines, more Filipinos are eating out daily
and fast food service operations have been flourishing in
popularity.

With

this

understanding

of

the

viewpoint

of

foodservice quality, it is helpful to increase revenues of campus

dining operations as well as to attract more students, including
off-campus students. An analysis of the corresponding financial
statement through profitability ratios, financial Leverage and
asset management ratios will help the Cren Top SnackHaus
broaden their comprehension about the financial position and the
results of operations. This study aims to analyze the competitive
financial strength and weaknesses of Cren Top SnackHaus, to
determine their financial performance through the use of

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appropriate financial and statistical tools as to expanding

business and to provide recommendations for improvements on
the basis of the findings.

2.1 Research Question/s (or Hypotheses)

The study focused on the study of Business Expansion of
Cren Top SnackHaus along Mapayapa Village, Sampaguita
Avenue.
Specifically, it seeks to answer following questions:
1. Is Cren Top Snackhaus operate effectively and efficiently?
2. Are there economies of scale that will benefit Cren Top
Snackhaus as it expands?
3. Based on the analysis of financial statements, do Cren Top
Snackhaus have the adequate working capital that will support
their business expansion?

2.2

Significance of the Study

This research will provide useful information to the following

parties about the possible opportunities that can be achieved
through expansion:

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To the Students. Financial Management majors will be

given an idea on how the expansion of the Cren Top Snackhaus
works. This study will help them understand what they will
encounter in life after graduation and the dilemmas they may
encounter in the business world.
To the Professors. This research will be one of the
reading materials that would give them an idea of what
had happened on the said business and their story or
reasons of expanding their business. Thus, it will give them their
students a better understanding in the expansion business
process.

To

the

Businessmen.

If

ever

businessmen

will

encounter problems such as deficits in his/her business, by

reading this they will have an idea that expansion could be a
possible solution. They will also have

possible ideas on how

business expansion will happen.

To the Cren Top Snackhaus clients. For those who are

having doubts or second thoughts whether to eat at Cren Top
Snackhaus in the process of expanding, this thesis will give them

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information to sort their benefit of the doubt to eat at Cren Top

Snackhaus.

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

about the concept of expanding the business of Cren Top
Snackhaus as well as their financial aspects. This study will also
help them understand the process of expanding a business and
how it will affect their customers as well as their financial
aspects.

To the Future Researchers. This will be an idea for

future researchers and also this can be an example for the
expansion process in the food chains industry that may be the
basis of their study.

2.3

Scope and Limitations

This study only focused on the business expansion of Cren

Top

SnackHaus.

The

researchers

assessed

how

Cren

Top

SnackHaus fared with respect to operational processes, facilities

& equipment, management, financial performance and business
expansion.

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The control of this approach is the financial benefits,

business risks, and the working capital that supports the
business expansion of Cren Top SnackHaus. This research was
conducted during the month of June to August of 2016 and
limited to Cren Top SnackHaus and its personnel, the researchers
observed and interviewed regarding the management practices
of Cren Top SnackHaus to answer the research questions through
interview. The participants were interviewed regarding the
management, operational processes and financial aspects of the
company. The results of this study cannot be generalized beyond
this population. Data gathered from this research instrument
were analyzed and the results interpreted.

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CHAPTER 3
REVIEW OF RELATED LITERATURE

The review of this literature focuses on the feasibility of

Cren

top

Snackhaus

to

expand

along

Mapayapa

Village,

Sampaguitaavenue. Business expansion planning and strategies

are discussed to give the readers a general description of how
business expansion works and the things that the owner should
take

into

considerations.

review

of

advantages

and

disadvantages of expanding business provides a background for

studying expansion feasibility.
I.

Business Expansion
All successful small business startups
eventually face the issue of handling business
expansion or growth. Business expansion is a stage
of a company's life that is fraught with both
opportunities and perils. On the one hand, business
growth often carries with it a corresponding increase
in financial fortunes for owners and employees alike.
In addition, expansion is usually seen as a validation

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of the entrepreneur's initial business startup idea,

and of his or her subsequent efforts to bring that
vision to fruition (Business expansion , n.d)

Business expansion therefore offers possible

benefits and inconvenience or disadvantages. There
is a wide division to be filled in order to catch up with
the competitors. In order to attain the objectives in
expanding of business, a business must allow
themselves to follow the trend of diversity
-increasing demand of the public.

II.

Financial Benefits
In expanding of business there are factors that can
make a good business sense such as building a name
in the business industry,having better brand
recognition, making value in the business for
employees and customers, offering a wider range of
products and services to a larger geographical
market, and creating economies of scale
Business expansion can help the company increase
revenue
Offer more job opportunities
Aid the financial situation of the foreign country

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Build good relationships with partners overseas,

which help create more business
Continue business in the event that business at
home has slowed down
Build diversity within the company
Create a good local and global image for supporting
communities
Companies may be able to hire employees for a
lower rate, which saves money
There may be lower costs of doing business overseas
Expand by building relationships with nearby
countries
By hiring globally, the company is open to bringing in

III.

new ideas and concept

Advantages of Business Expansion
Risks in Expansion of Business
The risks of business are real; otherwise everyone
would grow their business. Risks fall into many
categories including: personal, business and
competitive.
By acknowledging the risks, you can seek out
solutions, learn from others who have faced the
same challenges, and gain confidence in forging on
with your business expansion strategies.
The Case against Growth: Managing Risk
1. Personal Risks: Stress, No Family Time, Loss of
Control.
If you think that business expansion is not going to
affect your loved ones, and your own health and

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personal finances, and that they can be separated

from the ongoing pressures of growing your business
- you are misinformed. Safeguard against poor health
by getting regular exercise, eating well and spending
quality time (vs. quantity time) with your family
members.
Choose your business partners just as wisely as you
choose your friends/family. Bringing on business
partners and signing covenants can feel to an
entrepreneur like they are losing control and
independence. Would you like to own 50% of a multimillion dollar business, or 100% of a $100,000
business? If you cannot grow without taking on a new
partner then the three questions to ask yourself
when evaluating a potential partnership's worth are:
Is it a good fit strategically?
Is it a good fit operationally?
Could you spend a week on a boat with this
person(s)?
2. Business Risks: Instability, Ineffective
Management, Financial Loss.
Business growth brings pressures to a system that
may not have had the time/experience to get geared

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up for increased production or services. New timings

of payables/receivables may create financial strain.
Customers may feel underserved. Employees may be
uneasy about all the changes. The owner(s) and
management may not have the right skills. This is a
good time for a soul-searching examination of
strengths and weaknesses. Do you have enough of
the right stuff?
3. Competitive Risks: Unknown Markets, Aggressive
Competitors, Unfamiliar Terrain.
Growing is the next big challenge for a business
owner - it's exciting and new. That part is familiar.
Pushing your existing product into new markets, or
new products into existing markets will be unfamiliar
and may have unanticipated results. Also as you
push up against bigger competitors, don't be
surprised if they fight back! Think about outsourcing,
bringing in temporary executive savvy in expansion,
training your staff in new technology/methodology or
starting a new company with new equity, rather than
IV.

existing cash flow.

WORKING CAPITAL

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According to Henricks (2007), You can't grow unless you have

money to invest in growth. That may seem strange at first. After
all, growth is supposed to generate additional sales and profits,
right? That's true, but before you can increase sales, you usually
have to increase your current assets, such as inventory and fixed
assets such as a plant and equipment. Rapid growth means
hiring more people, furnishing more offices and perhaps renting
new quarters. Since there's usually a time lag between the
moment you need to invest in growth and the moment you
receive the resulting sales and profits, you need money before
you can grow.
Financing expansion can take many forms. You can use your own
money, borrow from friends and family, use internally generated
funds, approach equity investors or tap banks and other lenders.
The sources for funding growth are generally the same sources
you may have used to start your business. In many cases, you'll
go back to the same sources to pay for expanding your company.
The good news is that it's easier to fund growth in an existing
business than it is to fund a startup.
3.1 Theme 1

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Must be comprehensive in the light of the chosen variables

with a view to surfacing the research blankspots (unexplored
area) and blindspots (conflicting areas in the literature).
Follow a thematic organization. Determine the
themes to expound in the discussion. Themes should be parallel
to your research questions and hypotheses in terms of number,
sequence and essence.

3.2 Theme 2

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CHAPTER 4
FRAMEWORKS OF THE STUDY

This

part

includes

all

theories,

principles,

generalizations and research findings closely related to your

study and the framework where the present study evolved. This
will also include the conceptual theory or the research paradigm,
the variables (major and sub-variables) , the process used to
gather data, the expected outcome of the study. The operational
framework on how you will do the study must also be included in
this part.

4.1 Theoretical Framework

State or mention the name of the theory and its
proponents. If there is a diagram illustrating a theory, refer to
this.
Explain or discuss the details of the theory
Contextualize or describe how the theory is useful to your
research

IV.2 Conceptual Framework

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PROFITABILI
TY RATIOS

ANALYSIS OF
FINANCIAL
STATEMENTS

FINANCIAL
LEVERAGE

ASSET
MANAGEME
NT RATIO

PAGE

BUSINES
S
EXPANSI
ON OF
CREN
TOP
SNACKH
AUS

This part should explain the variables included in the

study, the process used in gathering data and analysis, and the
expected outcome based on the research questions.

4.3 Operational Framework

4.4 Operational Definition of Terms

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UNIT II
RESEARCH METHODLOY
CHAPTER I - RESEARCH DESIGN
The research problems are being answered clearly by
the review of related literature. However, related literatures
indicated limited information and some points are still needed to
be investigated regarding the capability of Cren Top SnackHaus
as a food establishment in expanding their business along
Mapayapa Village, Sampaguita Avenue. Therefore, researchers
will provide further evidences to further increase the validity of
the topic being studied.
The purpose of this study is to assess and analyze the
financial statements in terms of profitability, asset management
ratios as well as its financial leverage for business expansion. To
be able to gather the necessary data, the researchers utilized the
mixed method research, using both quantitative and qualitative
approaches. Through this, the owner and the personnel of Cren
Top SnackHaus are the participants in this study. An interview will
be conducted as research instruments used for the data-

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22

gathering to make evidence that will answer the research

questions thoroughly and help readers understand this paper
easily.
Specifically, this chapter deals and describes the
research design; research instruments; study locale; sampling
technique and statistical treatments that are used in this study.
1.1

Research Design
The study adopted a both quantitative and qualitative

method to establish a concrete and evident data in conducting a

study as regards to the potentiality of Cren Top SnackHaus to
expand. Using the mixed method, it is easily for the researchers
to validate the findings in this study since qualitative approach
use to improve a quantitative outcome of the study.
According to Dr. Y.P. Aggarwal (2008), descriptive research
under quantitative method, is concerned to the gathering of
information

about

current

condition

for

the

purpose

of

description and interpretation. This type of research design is

not only collecting and formulating facts but includes proper
analyses, interpretation, comparisons, identification of trends
and relationships. The technique that was used by the
researchers under descriptive method is the normative and

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evaluative research, which is designed for further analysis and

presenting accurate
Qualitative research thus refers to the meanings, concepts,
definitions, characteristics, metaphors, symbols and description
of things according to Berg (2007).

Specifically, ethnographic

research design under qualitative approach is used in order to

gather data as regards to exploring the cultural phenomena
where the researchers observes how in and off-campus students
near Mapayapa Village, Sampaguita Avenue captivated by the
products offered from the point of view of the subject of the
study.
1.2

Research Instrument

A research instruments is used for data collection to attain the

point of view of this study which is the potentiality of Cren Top
SnackHaus for business expansion along Mapayapa Village,
Sampaguita Avenue. This intruments includes questionnaires,
interview, observation and secondary sources.
The researchers focuses on interviews as a method of data
collection specifically, semi-structured interview. This type of
interview enables the researchers and the interviewee to diverge
in order to come up into an idea or response in more precise

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detail. The researchers will ask the owner of Cren Top SnackHaus
for their financial statements needed for analyzing the capability
for business expansion.
According to Helfferich (2009), a good interviewer needs the
following skills: Technical competence; interactive competence;
attention and steering; competencies in communication on
theory and knowing to deal with previous knowledge and
personal bias. This statement varies researchers to arrive at a
good data and information that would seek to augment this
study.

1.3

Study Locale
The researchers chose to conduct the study at the

University of Santo Tomas, particularly at Alfredo M. Velayo

College of Accountancy and the College of Commerce and
Business Administration. The rationale behind this decision
was that the researchers deemed it most feasible given the
limited amount of time to conduct the study, as well as in
order for the researchers to confirm causal observations on
the subject matter.
1.4

Sampling Technique
State whether your technique will be: probability random
sampling, or probability non-random sampling or non-

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probability sampling. Define the sampling technique and why

it is applicable to the study.
1.5

Statistical Treatment
State the statistical treatment of the data and which
statistical tools were used including the statistical packages used
to run the analysis.

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BIBLIOGRAPHY
Arrange all literature actually cited in chapters 1 to 4, arrange
them alphabetically and strictly use APA style entries.
Sample entries for books, journals, book edition and internet
source are shown below in that order;
Marino, T.J. (2016). Business Expansion Strategy. Retrieved from
http://tjmarino.com/blog/blog-entrepreneurship/businessexpansion-strategy.html
Polevoi, L. (2013). Strategies for Expanding Your Business.
Retrieved

from

http://quickbooks.intuit.com/r/growing-your-

business/strategies-for-expanding-yourbusiness/#sm.0017a4lsbenxfpu10ts1hqivi2gw6
Cordray, R. (2015). 10 Valid Reasons Why Businesses Should
Always Be Expanding Their Product Portfolio. Retrieved from
http://www.business2community.com/business-innovation/10valid-reasons-businesses-always-expanding-product-portfolio01126471#Gp3ICwyeH6Mcef3h.97

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

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

Biz Daily. Retrieved from http://www.smallbizdaily.com/5-benefitsof-expanding-your-business-platform/
(2012). Small Business Expansion: Things to consider. Retrieved
from http://www.yellowpagesunited.co/small-business-expansionthings-to-consider/
(2013). Benifits and risks to the internal expansion of Businesses.
Retrieved from https://getrevising.co.uk/grids/benifits_and_risk
(2014).

Business

Expansion

Retrieved

Introduction:

from

Why

Expand?.

http://www.cf-

sn.ca/business/business_expansion/intro.php
(2015) Expanding Your Business/Business Expansion. Retrieved
from

https://www.rocklandtrust.com/learning/business-

banking/expanding-your-business/business-expansion
Rinaldi, D. (2009, September 8). Should I Expand My Business?.
Retrieved from https://www.entrepreneur.com/article/203666
Dahl, D. (2010, February 25). How to Develop a Business Growth
Strategy.

Retrieved

from

http://www.inc.com/guides/small-

business-growth-strategies.html
(2010,

February

disadvantages

of

28).

Business

Business

Sales:

Expansion.

Advantages

and

Retrieved

from

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http://businessandsalesplan.blogspot.com/2010/02/advantagesand-disadvantages-of.html?m=1
Lockhart, J. (2012, March 21). Benefits of Expanding Your
Business

on

the

Same

Block.

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Pleshette, L. (2013, February 25). Business Expansion: 6 Things
to Consider When Growing Your Business. Retrieved from
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Eshna. (2013, March 8 ). How Do You Manage Your Cash Flow
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http://www.simplilearn.com/cash-flow-management-duringbusiness-expansion-article
Micallef, K. (2013, June 11). 5 Tips of How To Expand Business.
Retrieved from https://lineshapespace.com/5-tips-to-nurture-andexpand-your-small-business-part-1
Courtney, M. (2013, June 26). To Grow Or Not To Grow: That Is
The Small Business Question - Tweak Your Biz. Retrieved from
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Battersby, M. (2013, October 10). Funding Your Business

Expansion

Convenience

Store

Decisions.

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from

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

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

business/
Hecht, J. (2015, August 25). Financing for Business Expansion:
The 4 Best Steps. Retrieved from http://www.inc.com/jaredhecht/financing-for-business-expansion-the-4-best-steps.html
Puri, R. (2015, November 19). Business Expansion: 5 Warning
Signs

You

Aren't

Ready

Yet.

Retrieved

from

http://www.adp.com/thrive/articles/business-expansion-5warning-signs-you-arent-ready-yet-5-96
Marinigh, L. (2016, March 15). A Conversation on Business
Expansion

with

AJ

Khan

of

IICIE.

Retrieved

from

http://www.futurpreneur.ca/en/2016/business-expansion-aj-khan
Burnam, C. (2016, March 23). 6 Signs That You Should Stop a
Business

Expansion

in

Its

Tracks.

Retrieved

from

https://www.entrepreneur.com/article/270939
William, D. (2016, April 22). 8 Effective Small Business Expansion
Tips to Grow Beyond Your Current Status. Small Business Trends.

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Retrieved

from

PAGE

http://smallbiztrends.com/2016/04/small-

business-expansion-tips.html
http://ijtbm.com/images/short_pdf/Apr_2012_NEERU%20SALARIA
%202.pdf
https://www.american.edu/ctrl/upload/Qualitative-ResearchIntroduction.pdf

30