SWM111

Sports and Wellness Program Finance and Accounting

Name: Joanelivert Mercado

Sw 3: Research and Discuss the following:

1. The role of cash in business (sources of cash).

Cash is the most liquid asset and can be used immediately to perform economic actions like
buying, selling, or paying debt, and meeting immediate wants and needs. Bank can attract
significant liquid funds to generate stronger profits, more stability, and more confidence among
depositors, investors, and regulators.
Cash inflow is the lifeblood of your business and comes from sources like payments from
customers, receipt of a loan, monetary infusion from an investor, or interest on savings or
investments. Cash is also important because it later becomes the payment for things that make
your business run: expenses like stock or raw materials, employees, rent and other operating
expenses. Naturally, positive cash flow is preferred. Positive cash flow means your business is
running smoothly. High positive cash flow is even better and will allow you to make new
investments (hire employees, open another location) and further grow your business.

2. Mismanagement of working capital.

Working capital management is the management of all aspects of both current assets and
current liabilities, to minimize the risk of insolvency while maximizing the return on assets.
Current assets are a major financial position statement item and especially significant to smaller
firms. Mismanagement of working capital is therefore a common cause of business failure, like
for example, inability to meet bills as they fall due, demands on cash during periods of growth
being too great (overtrading), and overstocking. Working capital management is a key factor in
an organization's long-term success.
 SWM111
Sports and Wellness Program Finance and Accounting

Name: Joanelivert Mercado

SW 4
Discuss the following:

1. What are the difference between Internal Constraints and External Constraints (10pts.)

External constraints are constraints that are thrust upon a company. The company has no
(or little) control over the constraint. The company must build their product and systems
around that constraint. They must learn to live with it. For examples, time, money, energy,
knowledge, base or other elements that affect the decision making of the group. Also
includes resource scarcity, contracts (suppliers or employees), and legalities.

Internal constraints are constraints that a company places on themselves. They are artificial.
Good internal constraints are those that are put in place to keep a company focused and Bad
internal constraints are those constraints that a company puts on themselves that only ends
up ticking off their customers. Internal constraints are integral to the problem. They cause
initial problems such as limitations on the implementations such as government regulations,
physical location, technical or design difficulties, people, policy, and equipment issues, which
can actively reduce the efficiency of specific process flows.

2. Enumerate the different sports gambling activities that you know in our country. How does
it manage (illegal and legal). (5pts each answer) maximum of 3 answers.

A) “Basketball ending” betting game

This game originated in Philippines. People used to gamble on this game, most Filipinos use
this game to get rid of items that they do not need aside from selling. For example I have an
old ipad, phone, gadgets, shoes, etc. that I would like to sell. I can either sell it or post it as a
prize for basketball ending. Then this ending game will surely help you to get rid of your
item ask some of your friends to bet on the Game Card for only a few pesos, and use your
item as a price on the card. It falls as a violation under Section 2-a of Republic Act 9287 or
the Anti-Illegal Gambling Law but still many Filipinos continue to play this game since it is
really helpful, affordable and enjoyable for some.

B) Online Sports Betting

The Philippines is a friendly country for online betting and has legal sports betting sites.
Online Gambling is big business in the Philippines and Sports betting is wildly popular in the
Philippines and contributes a large percentage of revenue. There are hundreds of
sportsbooks that take bets from Filipinos on a regular basis. A majority of the action focuses
 on basketball and football, but you citizens have the option to place bets on any sports from
around the world. They make it easy to bet your favorite teams and games. You can also
find action on major sporting events like the MLB World Series, NBA Finals, the FIFA World
Cup, and world championship boxing matches. Depending on which sportsbook you choose,
your options for depositing may be limited compared to other parts of the world. Some of
the larger sites such as 888poker will accept credit cards, debit cards, bank transfer and a
large variety of e-wallets.

C) “Pailaw” betting game

Usually played by volleyball players in barangay courts. The rule is very simple, the winning
team is exempted in paying for the court rental or “pailaw” and sometimes you can put up a
deal where the losing team will pay you depends on whatever you’ve talked about. Most of
the time you will pay the opponent’s same position as you. For example I am the libero in
our team, the opponent’s libero is the one Im about to pay if we lose and we are called
“tao-tao”.

3. Enumerate 3 school based sports organization discuss the brief background of the said
organization.

A) Private Schools Athletic Association (PRISAA), founded in February 17, 1953, is an

association of private schools, Christian schools, and home school athletic departments
throughout the Philippines. The PRISAA exist to bring exposure and credibility to private
schools across the nation. The PRISAA accomplishes this with tournaments, national
rankings, player/coaching awards and recruiting services.

B) The National Collegiate Athletic Association (NCAA) is an athletics association of ten colleges
and universities in the Philippines. Established in 1924, the NCAA is the oldest athletic
association in the Philippines. It sponsors thirteen (juniors) and fourteen (seniors) sports,
which are divided into two divisions: the Juniors division for high school students and the
Seniors division for college students. There are male and female Seniors divisions for some
events.

C) The University Athletic Association of the Philippines (UAAP), established in 1938, is an

athletic association of eight Metro Manila universities in the Philippines. Composed of 8
schools and Varsity teams from the universities compete annually in the league's 28 events
from 15 sports to vie for the overall championship title, namely, badminton, baseball,
basketball, beach volleyball, chess, fencing, football, judo, softball, swimming, table tennis,
taekwondo, tennis, track and field, and volleyball.
 SWM111
Sports and Wellness Program Finance and Accounting

Name: Joanelivert Mercado

SW 5: Business Scenario:

An investor asking for help to put up a business with the capital amounting to
Php100,000

1. What type of business you are going to suggest? Why did you choose the
selected business?

A combination of a service business (offers professional skills, expertise,

advice, and other similar products.) and merchandising business (reselling of
products).
My idea is to offer 1 on 1 or personal MMA training and products that can help
them improve performances and reach their goal, like whey protein, mma
gears/protections (for rentals), apparel and some basic workout equipment.
Sessions will be held in the client’s place and at the same time the coach can
deliver the orders. This is for the people who don’t have enough time or don’t
want to go to
the gym but still want to learn MMA.

2. Breakdown (Indicate the price and quantity of the products and or Equipment
that you are going to use/sell.)

PAYMENT PER SESSION: P400 (60-40pt/owner)

RENTAL FEE: P150 PER SESSION (INCLUSIONS: GLOVES, SHIN GUARDS.)
Selling price will be additional 10% of purchase cost

PRODUCTS FOR SALE: QUANTITY / PURCHASE

COST

TUMBLER 10 PCS / P125 EACH

WHEY PROTEIN 5 (2LBS) / P1,600 EACH
RESISTANCE BANDS 5 PCS / P140 EACH
TRADITIONAL MMA FIGHT GLOVES 3 PAIRS /
P2,600/PAIR
BOXING GLOVES 3 PAIRS /
P2,200/PAIR
SHIN GUARDS 3 PAIRS / P1566/PAIR
HAND WRAPS 10 PAIRS / P100/PAIR
MOUTH GUARDS 5 PCS / P450/PC
GROIN PROTECTOR 3 PCS / 890 EACH
TSHIRTS 15 PCS / P250
BOARDSHORTS 15 PCS / P530
EQUIPMENT NEEDED FOR SERVICES:

1 PAIR OF THAI PADS & PUNCH MITTS (SET) 4 SETS /

P7,800/SET
JUMP ROPES 4 PCS / P160
EACH
FOAM ROLLERS (OPTIONAL/IF REQUESTED) 2 PCS / P310
EACH
AGILITY LADDERS 2 PCS / P280
EACH

TOTAL COST FOR PRODUCTS AND EQUIPMENT: P79,688

MARKETING EXPENSE: P12,000
TOTAL EXPENSES: P91,688
REMAINING BUDGET AND WILL SERVE AS CONTINGENCY FUND: P8,312

3. What are the marketing Strategy?

Direct mailing and social media/internet marketing. These would be the perfect strategies
for the potential business since most of the people nowadays are engaged in virtual world
and it would be easier because you just have to look for a really good PR team and pay
them. No need for monthly rental for an office or a place, storage area for equipment can
be in owner’s house.

4. Timeline for ROI

Let’s say we have a total of 4 coaches and each coach could do at least 5 sessions per
day.
P400 per session, 60% is the coach’s cut (P240). So it would be P160 profit per session
for the owner and investor. P160 x 5 (sessions) = P800 x 4 (coaches) = P3,200
That would be P3,200 profit per day, P22,400 a week, and more or less P89,600 per
month.
That’s only for services, and let’s say we were able to sell the stocked merchandise then
it’s possible that the return of investment will only take more or less than a month.
 SWM111
Sports and Wellness Program Finance and Accounting

Name: Joanelivert Mercado

SW6

Research 5 different sporting goods business. 

Discuss how did they start. (include the capital if possible)

How many branches? (if more than one.)

What are they selling?

Name of the owner.

A) Be amaz1ng

Owned by Filipina celebrity Diana Zubiri, this brand allows you to express yourself in the gym
through vibrant and non-boring activewear. They sell top notched sports bras, leggings, and
shirts for women in accordance with the mission of the brand- women empowerment. A portion
of their proceeds is donated to charity as well. As of now they’re selling their products thru
website (https://alisters.com.ph/store/diana-zubiri/) and haven’t built a physical store yet.

B) Manly

Manly was originally founded 40 years ago by Gobind Sitlani, the father of Helen Vaswani,
the CEO and President of the company today. It started when Gobind was flipping through GQ
and other fashion magazines, and noticed a trend for supporters in Australia.

The Manly brand specializes in active support gear. Their products are usually recommended by
orthopedic doctors, surgeons, and physiotherapists for injury prevention and rehabilitation.
Fitness enthusiasts also use Manly products for more comfortable workouts.

The company sells products like back support belts, knee, ankle support, sports bras,
compression supporter shorts and compression pants, yoga mats, full leg support, and posture
support.

Manly and Womanly products are available at several different retail outlets nationwide. They
supply to all major department stores such as Planet Sports, Olympic Village, The Athlete’s
Foot, Sports Warehouse, Gaisano Group of Companies, Metro Retail Stores Group Inc, Lopues
Department Store, DSG Sons Group Inc, Landmark, and JB Sports.
C) Vamos

A sports brand co-owned by local celebrity Drew Arellano. The brand initially offered a wide
selection of performance and lifestyle socks mainly for cycling athletes and enthusiasts. The
store sells sports gear for biking, running, and basically, for everyday wear, Vamos appeals
their customers with their simple and clean gear designs. Now, their product catalog includes
other simple yet sleek cycling accessories such as jerseys, caps, and shirts.

Branches: All Shoppe Starmall Alabang, All terra cyclery Ortigas, Ap Corse Manila,
Basekamp (Alabang, Cubao, Ayala Fairview, Robison Galleria, Glorietta 3), Planet sports
and more stores nationwide.

D) Atsui Athletics

This Filipino brand offers stylish and quality activewear for both men and women. Atsui
Athletics caters mostly to pilates and yoga enthusiasts who seek athleisure pieces that are
both fashionable and functional. The shop also expanded last 2017, opening “airemov”, a
woven 4-way stretch and moisture-wicking fabric best used for high-performance workouts
like spinning, boxing, and CrossFit. Owned by LESLIE and Homer Silvestre.

Where to find: UrbanAshramYoga (Makati, Pasig and BGC branches), Yoga + (BGC,
Ortigas, Makati and DLSU branches), Plana Forma (BGC, Quezon City, and Makati
branches), Bikram Yoga Manila (Makati and Quezon City branches), FTX Makati branch
and Bliss Yoga Manila Makati branch.

E) FitMe

Owners: Juan Resurreccion and Patricia Ramos.

FITME.PH started out as a wild idea to create a movement that is centered around Flexible
Dieting. They believe in less restrictive dieting practices because they feel like they are
largely unnecessary to the lifestyle fitness enthusiast. They recently expanded to products as
well and started selling resistance bands, power sliders, medicine balls, and other workout
equipment. You can visit their store website @ https://bootybands.ph/ they don’t have a
physical store but all of their parcels are delivered through their company riders.