CHAPTER III

MANAGEMENT STUDY

This chapter explains and examines the proposed business's management

structure in order to achieve the mission, vision, and goals. This is regarded as the

business's eye, considering activities and performance would be impossible to achieve

without the thoughts and efforts of employees who operate behind the scenes.

Forms of Ownership

This proposed business is a sole proprietorship type of business organization as it

will be managed and owned by Ms. Nicole Khiena Maratas who was born and raised in

Naga Zamboanga Sibugay but currently staying Dapitan City. She will be in charge with

the overall operations of the business from communicating the suppliers, acting cashier to

overseeing the business daily. Two workers will be hired who will be personally in

charge with talking and entertaining the customers, doing the work of cooking and

assisting with all the necessary works to make the business happen. All profits will be

rewarded to the owner, and all business debts and liabilities will be assumed up to the

value of her personal property.

Vision

To be a well-known leading balachan business that provides excellent product

and service along with upholding the highest standards of cleanliness, quality and value.

Mission
 We are committed to provide the best balachan for our customers, ensuring their

expectations are met ‘till the very last bite

Goal

Our goal is to maintain long-term customer loyalty, a strong brand image, and

sustainable performance growth.

General Objectives of the Business

Our aims include:

 Profit maximization

 Boosting capacity in production

 Produce the best for less

 Outstanding product and service

 Customer and supplier intimacy

 Expansion for the next 2 years

 Community engagement

Capitalization

The term "capitalization" refers to the owner's initial investment in the business.

This is considered the fuel that allows the operations to be reachable and realistic, and it’s

serves as the introductory step that every business owner should allocate time and good

decisions in order to minimize the risk of not recovering the amount invested.

Table 29. Capitalization

 Pre-operating Expenses Amount
Raw Materials ₱5,005.00
Initial Direct Cost for the Lease 5,000.00
Equipment 15,799.00
Furniture and Fixture 1,630.00
Food Stall Construction 17,161.00
Kitchen Wares 1,253.95
Office Supplies 813.00
Sanitary and Cleaning Supplies 740.00
Other Materials 1,412.25
Utility Expense 1,000.00
Permits and Licenses 5,600.00
Total ₱ 55,414.20

Initial Investment by Owner ₱ 55,414.20

Less: Total Projected Cost ₱ 55,414.20

Balance ₱ -

The table above shows the startup expenditures, their respective amounts, and the

overall capitalization needed for the proposed business operations amounting

₱60,447.20.

Organizational Chart

An organizational chart is a graph of how a business is structured and how

positions and organizations within the company are linked. It is an important part of

business since it promotes the flow of information, work allocation, and the

determination of job vacancies.

Figure 28. Organizational Chart

Owner/Cashier/Manager

Bookkeeper

Sales Staff Cook

The proposed business's organizational structure is depicted in the picture above,

with the owner/cashier/manager at the top in charge of overall business operations,

financial resource management, and other associated duties. This is followed by the

bookkeeper, who is in charge of auditing the company's accounting records. Finally, at

the bottom of the organization chart, there are the sales staff and the cook, each of whom

have unique functions/responsibilities that are detailed more below.

Job Description and Specifications

Table 30.

Position Job Description Job Specification

Owner He/she owns the business with the  Required to have a thorough

aim of meeting a need in the understanding of the business

public while maximizing the into which he/she is entering,

profitability. He/she is also as well as the link between

responsible in the planning, business and societal needs.

marketing, financing, overseeing  Entrepreneurial skills and

daily operations, providing positive mindset in all

solutions to business challenges, decisions and actions made.

and contributing positively to the  Professional attitude in

economy of the country by handling employees and

providing private sector situations.

employment opportunities.  Not afraid in taking risks as it

teaches a very powerful lesson

that tends to stay for life.

Cashier He/she is responsible for  Equipped with business and

maintaining positive impressions accounting educational

for the business, process background.

transactions, calculate cost of  Able to do basic math and

products, handle payments, price computer functions.

checks, answer customer  Ability to handle transactions

questions about products, accurately and responsibly.

reconcile cash drawers and sales  Must be 24 years old and

receipts, and maintain a record of above.

transactions.
Manager He/she is responsible in  Should have a four-year

interviewing, selection and hiring; degree in finance, marketing,

training new and existing or accounting.

employees; planning, assigning  Competent of achieving the

and directing work; authoring and desired outcomes and bringing

discussing with employee’s people together.

performance appraisals;  Have a good written and

addressing employee performance verbal communication skills

and corrective action plans; and an ability to read people,

employee motivation and rewards. troubleshoot problems and

He/she should also carry out help teams collaborate as

supervisory responsibilities in necessary.

accordance with business’s  Must be 25 years old and

policies and applicable laws. above, with experience in

managing a business.
Bookkeeper He/she is responsible for  Has knowledge of bookkeeping

(On call) recording the business’s financial practices and apply generally

accounts and records. He/she is accepted accounting principles

also in charge in checking and procedures, as well as

accounting records for accuracy, relevant legislation and

tracking invoices and payments regulatory requirements.

and maintaining a system for  Able to work in computer

organizing business documents. applications and can manage

data comprehensively.

 Has an associate's degree in

accounting and finance and is a

certified bookkeeper.

Sales Staff He/she is responsible in  Extensive experience in

communicating and obtaining the promotion and marketing with

customer orders, and be able to the goal of surpassing sales

showcase the features of the targets.

products offered. He/she is also  Able to work with less

responsible in the packaging of supervision and has a strong

the product, making it presentable work ethic.

for the customers.  Has excellent communication

skills when it comes to

persuading customers.

 Has a basic understanding of

 mathematics and can calculate

the precise pricing of the

products.

Cook/Baker He/she is responsible in  Has a thorough grasp of

administrative tasks related to cooking and baking, as well as

kitchen management, ensuring the ability to provide delicious

that ingredients are stocked before and clean food to customers.

service and communicating with  Has good time management

the management to order supplies. skills and is able to satisfy

He/she is required to ensure that customer orders as quickly as

food costs yield profitability while possible.

providing quality ingredients. The  Able to budget supplies and

maintenance of the kitchen quantify the quantities required

equipment and ensuring food over a period of time.

preparation areas meet sanitation  Able to keep the kitchen tidy

standards and local health laws is and clean.

also his/her role in the business.

The table above shows the job description and people specifications required for

the overall running of the proposed business. It describes the duties, goals, and

requirements of the ideal workforce, as well as their talents, level of experience,

education, and personality type.

Manpower Requirements

Table 31.

Position Manpower Requirements

Owner/Cashier 1 • Capable of performing fundamental

/Manager calculations and computer tasks.

• Have a nice personality and high ethical

standards.

• Has a business and entrepreneurial

approach, prioritizing the growth and

productivity of the business.

• Capable of handling multiple jobs and

completing them efficiently.

• Having a diverse variety of experience and

knowledge and being able to use it for the

benefit of the company

• Be able to use computer applications.

Bookkeeper 1

(On call)
• Analytical and numerical competence are
 required.

• A bachelor's degree in accounting or

finance is required and completed the

bookkeeping assessment.

 Proficient in interpreting accounting

standards and state laws.

 Has the ability to fulfill management's

deadlines.
Sales Staff 1  Knows how apply marketing in the

business.

 When it comes to customer relationships,

he/she is able to communicate effectively.

 Able to understand the basic mathematical

calculations.

 Able to appropriately list the orders of

customers.

 Creative in designing the packaging of the

products.

 Can introduce the product to prospective

customers and persuade them to purchase.

 Possess the ability to adhere to managerial

etiquette.

 Should be equipped with cooking and

Cook/Baker 1 baking skills, ensuring that costumers get

tasty and clean foods.

  Able to satisfy customer orders as quickly as

possible.

 Should know how to calculate the needed

supplies.

 Able to observe cleanliness in the kitchen.

 Knows how to read and communicate to co-

employees properly.

 Must still have a pleasing personality even

under pressure.

Total 4

The table above lists the four people who are playing separate responsibilities in

the proposed business. They provide the workforce required to execute the task, allowing

the firm to run smoothly.

Employment Process

A thorough employment procedure directs both the employee and the business on

what measures they should follow. This will allow the business to define strategies and

requirements for the quality of candidates, the time, the place, and the possibility of what

will happen next.

 Figure 29. Employment Process

Attract Screen Interview Offer Hire

The image above depicts the proposed business's hiring process, with the first

stage being to attract possible candidates via social media, job boards, or internal

sources. Applicants should also submit all required criteria in this step, such as an

application letter, resume/bio-data, and two (2) 2x2 pictures, through email or physical

delivery, whichever is more convenient.

The second stage is the screening process, in which the employer prepares a

shortlist of suitable and qualified applicants for the next step. This stage will also include

engaging with applicants by phone or text message to ensure that they are aware of and

ready for the next step.

The interview is the third step, in which the company will ask the applicants a

series of questions. They will also assess if an applicant's abilities, experience, and

personality match the job's criteria at this level. The outcome of whether the application

is approved or denied may be announced after all of the questions have been answered.

This stage comprises validating employment information and making an offer to

qualifying applicants in the fourth step. The offer may include the salary, benefits, paid

time off, start date, potential severance compensation, working remotely policy, and

other terms and conditions of employment for the position. Other terms and conditions
 of employment may also be provided. Given that negotiations are likely to follow,

applicants should assess which aspects of the offer are negotiable and which aren't before

accepting the offer.

The last step is to hire the qualified applicants, and begins the process of filling

out documentation relating to employment. Recognizing the candidates as employees or

onboarding process are to be followed, in which an orientation should be conducted to

make sure that they have a clear grasp of their roles, expectations, and scheduling of the

company activities.

Employees Policies

This section stipulates the regulations and rules that the proposed firm will follow

in order to ensure a positive working environment for staff and a pleasant client

experience. The employees will be expected to rigorously follow the policies and rules,

and any violations will result in disciplinary action, including termination of

employment, if they are violated.

General Rules:

 You are expected to arrive on time, and should not walk off the job or leaving

assigned work position or tasks without proper cause and prior permission. Unless

there is an emergency, phones may be used during break time.

 You should observe personal hygiene. Hair should be clean and well-groomed.

Maintain a clean and well-trimmed set of fingernails. Men may wear beards or

moustaches of reasonable length, so long as they are well-trimmed and cared for.

 If you become ill or get hurt while at work, you must notify the management
immediately. Failure to do so may result in a loss of benefits.
 Every time you are at work, you must wear a face mask, hairnet, gloves, apron,

white shirt, black trousers, and black shoes.

 Customers, as well as coworkers and others, should always be treated with the

utmost respect.

 You must exercise extraordinary care to be clean at all times. Wash your hands

frequently. Handle food carefully in accordance with procedures explained by the

management.

 You should handle business properties appropriately and with the diligence of a

good father of a family.

 If you do take a complaint, whether by phone, email, or some other medium, you

are to respond politely. It is also required that you address it to the management.

 Smoking is absolutely forbidden within the business premises at all times.

 Before leaving and returning home, clean the equipment, tools, utensils, and work

area. Observe proper disposal of garbage.

 Work with integrity, honesty, and confidence.

Salaries/Wages and benefits

Table 32. Salaries and Wages

Position Rate Monthly Salary Annual Salary

Owner/Cashier/Manager ₱400.00 ₱8,800.00 ₱105,600.00

Sales Staff 150.00 3,300.00 39,600.00

Cook 200.00 4,400.00 52,800.00

Bookkeeper (On call) 2,000.00 per - 2,000.00

service

Total ₱2,750.00 ₱16,526.00 ₱200,000.00

The salary and wages of every employee in the business are shown in the table

above. The monthly pay is calculated by multiplying the 22 working days of the business

to the daily rate, then multiplying the result by 12 months to get a total yearly salary of

₱200,000.00 which includes the bookkeeper's one-time service pay amounting ₱2,000.

Table 33. Employees share on SSS and Phil-Health Contribution

 Position Monthly SSS Contribution PAG-IBIG Phil-Health

Salary Contribution Contribution

ER EE ER EE ER EE

Owner/ ₱8,800.00 ₱748.00 ₱369.00 ₱100 ₱100 ₱154 ₱154

Cashier/

Manager

Sales Staff 3,300.00 280.50 148.50 100 100 57.75 57.75

Cook 4,400.00 374.00 198.00 100 100 77.00 77.00

Total ₱16,526.00 ₱1,402.50 ₱715.50 ₱300 ₱300 ₱291.75 ₱291.75

The table above depicts the SSS, PAG-IBIG, and PhilHealth contributions,

which are beneficial to the employees as they are assuredly, entitled to receive assistance

in case of emergencies. Through the benefits, the business will also attract and retain the

best employees, boost morale, improve business philosophy, and make the workforce

more productive.

Legal Requirements

In order to protect the welfare of those involved in the business's activities, as

well as its assets in the event of a lawsuit and damages, it should have legal papers as

proof of compliance with specified regulations. This will establish a concrete trust from

the clients, and able to make the firm more recognizable in a long run.
 On the other hand, if the company works in an illegal manner, it will only be

susceptible to legal action, penalties, and the danger of closure.

Barangay Clearance

This clearance is one of the permits or documents required when registering a

new business in the Philippines. This permit is issued as prerequisite before a business

license or permit may issue to cover the business or activity conducted by a particular

entity which is located in the said barangay. This certificate is also a must when renewing

an expired Mayor’s Permit or Business License.

Mayor’s Clearance
Department of Trade and Industry
Community Tax Certificate

Bureau of Internal Revenue

Philippine National Police Clearance

PhilHealth Insurance
Home Development Mutual Fund (PAG-IBIG)
Social Security System
Fire Safety Inspection Clearance