The document provides information about the Pilipinas I-Cafe Marketing Cooperative, a cooperative established by 26 internet cafe operators in the Philippines. The cooperative aims to address challenges in the internet cafe industry and support its members. It plans to increase its membership from 26 to 550 members and raise its authorized capital from 1 million pesos to 5 million pesos by 2012. The cooperative offers business packages, computer products, trainings and solutions to its members.
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This paper was written for my Entrepreneurship class (BUS225) back in the Spring of April 2010. The project we had to do was to come up with a fictional business. We had to decide where the business was going to be located, identify our competitors, make a mission statement for the business, the form of ownership, and the total cash needed in order to start my business which includes capital and start up costs. Unfortunately, there is no Power Point associated with this project either, but it would have been a great project to make one for this topic.
Few basic explanations on E-commerce and Internet Marketing. In the world of technology, the Internet plays an important role. The slides take you to very basic insights of the processes involved.
When doing business online, entrepreneurs need to know about the Philippines E-Commerce Law or Republic Act 8792. Making sure their systems and processes are compliant. Know about the legal accountabilities indicated in the law.
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Few basic explanations on E-commerce and Internet Marketing. In the world of technology, the Internet plays an important role. The slides take you to very basic insights of the processes involved.
When doing business online, entrepreneurs need to know about the Philippines E-Commerce Law or Republic Act 8792. Making sure their systems and processes are compliant. Know about the legal accountabilities indicated in the law.
Learn more at
http://ecommercebootcamp.digitalfilipino.com/lesson/the-e-commerce-law/
Read the full text at
http://digitalfilipino.com/the-philippines-e-commerce-law-republic-act-no-8792/
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
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2. Introduction to the Internet Cafe Industry in the Philippines
The Internet Cafe industry is one of the most dynamic and yet unrecognized industry in
the ICT infrastructure of the Philippines. In a country that is characterized by a low PC
penetration rate and broadband subscription, it is quite surprising that the Philippines places
18th over all in the most number of Internet users all around the world. Twenty four and half
percent (24.5%) of the total population of the Philippines goes on line in a country with an
8.4% PC penetration rate and with just more than a million broad band subscribers.
In a 2009 study by Yahoo and Nielsen entitled “Internet Habits in the Philippines”, it
stated that Internet Cafés are very important Internet access points in which Seventy One
percent (71%) have accessed the Internet in Internet Cafés in a given three (3) month period.
Forty seven percent (47%) of all Internet time is accessed through the Internet Cafés and it is
the dominant access point for users from the lower socio-economic class. From the time the
first Internet Cafés were set up in the late 1990's it has been considered to be the creator of
the demand for ICT products and services. Due to their enormous number and are frequently
located in the various communities around the country, Internet Cafés are places wherein the
Filipinos first learned to use the computer and know about the Internet.
Despite of this the Internet Cafe industry is one of the most unrecognized and
unappreciated industry in the ICT infrastructure of the country. Since it started off as computer
gaming center and up to this time a majority of the Internet Cafe operators is very much
dependent on the computer gaming business model for their sustainability, it has received a
negative perception in the community in which it serves. It is the most regulated industry
without actually receiving any government support. Standards are not set therefor the quality
of service is rather poor. Internet Cafe operators does not have accessed to ICT resources
and trainings that they need in order to improve their operations.
Pilipinas I-Cafe Marketing Cooperative
Believing that the Internet Cafe industry still holds a lot of potentials despite the
problems that it is facing, a group of 26 Internet Cafe operators coming from the different
places in Luzon gathered together on May 21, 2010 at 26 Doña Hemady Ave New Manila,
Quezon City to organize the Pilipinas I-Cafe Marketing Cooperative. Community ownership of
initiatives is an essential feature that is needed in order to achieve the changes and support
that is needed by the industry to propel it to greater heights. The cooperative mode of
ownership was chosen by the cooperators since it would provide them with the opportunity for
faster accumulation of equity through their contributions while enjoying the most democratic
form of business ownership. Each member of the cooperative is only allowed to have one
vote on matters pertaining to its operations no matter how big his equity contribution to the
cooperative. No single individual can control the cooperative since a member is only limited to
a ten percent (10%) equity share in the company.
3. Cooperative Capitalization
The authorized Share Capital of this Cooperative is ONE MILLION PESOS ONLY (PhP
1,000,000.00) Philippine currency, divided into:
1. Fifteen Thousand shares (15,000) common shares with a par value of Seven Hundred
Fifty Thousand (PhP 750,000.00) Pesos at P50.00 per share;
and
2. Five Thousand (5,000) preferred shares with a par value of Two Hundred Fifty
(Php250,000.00) Pesos at P50.00 per share.
As of May 21, 2010 at least twenty five percent (25%) of the authorized capital stock has
been subscribed and at least twenty five percent (25%) of the subscribed capital stock has
already been paid for by the cooperators.
Mission, Vision and Values of Pilipinas I-Cafe Marketing Cooperative
Mission
We believe that the advancement and innovations brought about by Information
Communication Technology will bring about social change and economic development to the
various communities in the Philippines. It is in this light that we would strive to develop an
ICT enabled community whose members are empowered with the proper ICT knowledge and
skills so that they could effectively engage in a globally competitive economy.
Vision
In our quest to develop an ICT enabled community we will strive to achieve the following:
1. To be a leader in providing connectivity and social ICT infrastructure that could serve
as a standard on the effective use of ICT resources at the community level.
2. To provide trainings and accreditation programs to the community ICT practitioners
that could lead to their professional growth and development.
3. To formulate ICT business solutions and packages that will bring about the
development of e-commerce and providing economic opportunities to people through
ICT.
4. Values
As we strive in the achievement of our goals, we are guided by our values that would serve
as our guide:
1. Leadership – the courage to take bold steps in shaping for a better future.
2.Transparency – what we do we let other people know
3. Collaboration – leverage collective genius
4. Integrity – be real
5. Accountability – we take responsibility for our actions and decisions
6. Passion – committed in heart and mind
7. Camaraderie – Friendship in business
8. Professionalism – we follow the golden rule-do unto others what you want others to
do unto you.
5. Cooperators
Name Name of Internet Cafe Home Address
Albuera, Rodolfo Jr. G Homebiz.com Cabuyao, Laguna
Apostol, Evelyn R. Apostle.com Systems Inc Imus, Cavite
Balajadia, Bienvenu Net N'Counter Computer Services Marikina City
Ballarta, Noel N Richnet Internet Cafe Quezon City
Cabañgon, Santiago G Quick Silver Internet Cafe Mandaluyong City
Cañada, Emmanuel P LernQuezt Internet Cafe Laguna
Conise, Ricky John H Conise Internet Cafe Makati City
Cruz, Norman Vincent Isurf Express Internet Cafe Sta Mesa Manila
Dasal, Pio Rommel TGAR! Internet Cafe Imus, Cavite
De Villa, Emilio Jr. G EGD Internet Cafe Manila
Gimena, Arthur A. Dj Hobbies Quezon City
Gonzaga, William R. Marikina City
Martirez, Arnel M. Patricia's Net Station Valenzuela City
Morada, Gener Luis R Mando's Computer Services Imus, Cavite
Nablo, Joseph G Skill Up Computer Shop Valenzuela City
Pascual, Rally Benitez Ralzky Internet Cafe Antipolo City
Pinlac, Eric S. Potholes Cyberzone Valenzuela City
Rodriguez, Dolores A. Hidden Tribe Internet Cafe Valenzuela City
Salamat, Thelma L Alkates Computer Center Valezuela city
Saul, Eric L. King Saul Computer Shop Batangas
See, Michael Benedict N Uranus Internet Cafe Pampanga
Somera, Vic Donald Q. Copy Prints internet Cafe Bulacan
Tuboro, Maria Remily P Lucky Dragon Computer Shop Catanduanes
Tuboro, Rosette P Virtual Nook Computers and Gen. MDSE Catanduanes
Vibar, Joey Y JYBIZZ Internet Cafe Imus, Cavite
Zafra, Edgardo C. Marikina City
6. Board of Directors
Morada, Gener Luis R Mando's Computer Services Chairman of the Board Imus, Cavite
Balajadia, Bienvenu Net N'Counter Computer Services Vice - Chairman Marikina City
Salamat, Thelma L Alkates Computer Center Treasurer Valezuela city
Nablo, Joseph G Skill Up Computer Shop Secretary Valenzuela City
Tuboro, Rosette P Virtual Nook Computers and Gen. MDSE Board Member Catanduanes
Vibar, Joey Y JYBIZZ Internet Cafe Board Member Imus, Cavite
Cabañgon, Santiago G Quick Silver Internet Cafe Board Member Mandaluyong City
7. Projected Increase in Membership and Authorized Capital Stock
The regular membership of the cooperative is open to any natural person, Filipino citizen,
of legal age, with the capacity to contract and are owners or operators of internet Cafés in the
Philippines. While associate membership is open to any natural person, Filipino citizen, of
legal age, with the capacity to contract and who are either engaged in the internet cafe
business or any related ICT business.
Regular and Associated membership in the cooperative entails the minimum purchase of
100 of common/preferred shares.
05/21/10 12/31/10 12/31/11 12/31/12
26 255 400 550
Table 1: Projected Increase in Cooperative Membership
2010 2011 2012
Php1,000,000.00 Php3,000,000.00 Php5,000,000.00
Table 2: Projected Increase in Authorized Capital Stock
Products
Computer Packages
1. I-Citizen PC - an entry level personal computer for both home and internet cafe use
2. Business PC - a mid range personal computer that could run most of the business
applications and games
3. Gaming PC - a reasonably priced gaming computer that is configured to provide the
best gaming experience for customers of internet cafés.
Computer Parts and Peripherals
1. Processors
2. Motherboards
3. RAM
4. Power Supply
5. Video Cards
6. Hard Disk
7. Casings
8. Monitors
9. Keyboard
10. Mouse
11. Web Cameras
8. Internet Cafe Business Packages - a complete business package that includes consultancy
services from business set up and business competency trainings.
1. Community I-Cafe Centers (CICC) - the Community I-Cafe Centers takes the Internet
only business model into a higher level. Traditional Internet only business model just
offers Internet access to its customers but the CICC would serve as a community ICT
center catering to the educational needs for Internet connectivity and ICT services for
the Mini, Small and Medium Enterprises (MSMEs).
2. Gaming I-Cafes (GIC) - the GIC is the traditional internet Cafés business model in
which it is centered on catering to the needs of the online and LAN gaming segment.
Emphasis would be centered on the total gaming experience of the customer as to
their comfort and game play.
3. Community I-Cafe Business Centers (CICBC) - it will primarily center on the needs of
the starting entrepreneurs, professionals, students and MSMEs for an affordable place
to do their work. It would be equipped with the necessary communication facilities and
services in a business friendly atmosphere.
Training Programs
1. Internet Cafe Entrepreneurship Seminar - provides participants with industry
information, conducting a feasibility study and basic business skills in setting up an
internet cafe business.
2. Internet Cafe Basic Operations - provides participants with the basic technical and
business skills in operating an internet cafe.
3. Computer Hardware and Software Maintenance - provides the participants with the
technical skill that they need in operating their internet Cafés properly
4. Appreciation Seminar on Open Standards Platform - provides the participants with
information about the open standards software that would work in both open source
and proprietary platforms.
5. Community I-Cafe Centers Development Program - this program will primarily center
on those who will be setting up Community I-Cafe Centers in their respective
communities. It would center upon the integration of ICT in education and developing
programs for the MSMEs.
Business Solutions Offering
1. Open Standards Platforms for education and MSMEs
2. Internet Cafe Management System
3. Microfinance Management System
4. Establishing Internet Presence for MSMEs