Chapter I
INTRODUCTION
The provincial capital of Quezon in the Calabarzon region is Lucena. It is also one
of the well-known places in Quezon Province for having a variety of resorts, beaches, and
swimming pools where visitors may unwind during the summer.
Wood is a renewable resource that is in high demand and a vital raw material for
building and manufacturing. Yet, in order to maximize the amounts that may be reused and
to enhance the qualities of the recovered wood, current legislation and recycling procedures
for wood waste need to be modified. Recycling scrap wood increases its usefulness and
prevents the landfilling of unwanted resources. In fact, the wood waste that is currently
available may very well be an excellent source of income. Using it to create stuff, such as
souvenirs
A souvenir is something that travelers frequently use as a memento of their travels,
and people like to be reminded of special moments in their lives and to have evidence of
those special moments. One type of product of cultural connection and trade between the
society of producers and outside audiences is authentic souvenirs. The majority of travelers
return with mementos and souvenirs as proof that the souvenir is a significant part of the
travel experience. Individuals enjoy holding mementos of memorable occasions in their
lives and being reminded of them.
The goal of this study is to create two unique solutions to the problems associated
with handling wood waste. First by lowering the amount of wood waste created by
2
business, it can protect our environment especially the sustainable natural resources.
Second, is to identify the main significance of the memento as proof of the event and the
functions of memories which souvenir creates. Furthermore, the business supplies
souvenirs to local beaches and resorts in the Lucena City area and is willing to create
customize designs for special occasions.
Background of the study
A souvenir represents the tourist’s travel documentation. T-shirts, authentic
handcrafted items, key chains, miniature copies of the landmarks, and other items which
symbol the location are example of souvenirs. It can be a gift or evidence of the journey
that it also reminds exceptional moments and unique experiences. However, in this study,
keepsake or souvenirs are solely manufactured from wood waste.
According to Euro Note Souvenir, purchasing souvenirs for multiple tourists serves
as a path for them to feel connected to the place and to the people who lived there which
gave them a memorable time, as it creates somehow a sense of belonging. It allows tourists
to take home a part of their vacation and share the experience to others. Souvenir provides
tourist’s the opportunity to appreciate and learn different cultures by being aware about the
history and tradition of their picked destination.
In addition, souvenirs, which frequently contain famous symbols or features of a
location, can be used as a marketing strategy of the place. Tourists who wear or exhibit
these mementos serve as a visual representation of their experience and may motivate
others to visit the place. Souvenirs are important in the tourism sector since they provide
3
as a tangible reminder of a holiday or a journey, as well as a keepsake to share with friends
and loved ones.
In conclusion, souvenirs are useful crafts that are the result of the creativeness of
the craftsmen who are able to convert wasteful and worthless items, woods in particular
into an attractive and aesthetic souvenir which are enticing to a immense number of
individuals.
Main Objectives of the Feasibility Study
The general objectives of the business are to determine the feasibility of the business in
terms of:
1. To determine whether the product is acceptable to the market.
2. To choose the most effective process, resources, and labor needed to make the product.
3. To decide which business’s organizational structure is most effective.
4. To determine out the company’s financial profitability.
5. To identify the company’s impact on the environment and community.
Scope and Limitations
The study covers Lucena City as the main area of the business as well as its nearby
municipalities which include Sariaya and Pagbilao. The gathered data for the study will be
based on a survey questionnaire which the researchers will provide to the guests, selected
4
beaches and resorts owners. This study is limited to 132 registered souvenir shop and 9
resorts in Lucena City.
This study will include the management, marketing, technical, socioeconomic, and
financial aspect of the business.
The researcher will use both quantitative data and questionnaire. The souvenir
made out of wood scrap will be distributed within the mention areas through direct selling
and customer’s order. The business also offers customized design for special events.
Definition of Terms
For better understanding of the readers, the words listed below are defined
technically and others are provided with operational definition.
Aesthetic - refers to the appearance of something, particularly in relation to its beauty.
(Macmillan Dictionary, 2017).
Handcraft - a skilled activity in which something is made in a traditional way with
the hands rather than being produced by machines in a factory, or an object made by such
an activity. (Cambridge Dictionary, 2023). In this study, this will be the process needed to
perform to produce the final output of the business.
Keepsake – something that you keep to help you remember a person, place, or event
(Britannica Dictionary, 2020)
Memento – A memento is an object which you keep because it reminds you of a person or
a special occasion (Collins Dictionary, 2022)
5
Souvenir – something you buy or keep to help you remember a vacation or special event
(Cambridge Dictionary, 2023). This will be the final product of the proposed business.
Wood scrap -
production waste from sawmills, carpenters' workshops or furniture
factories and untreated wood offcuts from building sites. In this study this sill serves as the
primary raw material of the business.
Chapter II
METHODOLOGY
This chapter address how to enter the market using various approaches and
strategies. It entails the right method of promoting the proposed firm and its many
strategies. It covers research design, research locale, the respondents, research
instrumentation, data gathering procedures, ethical considerations, and data analysis tools
which assists researchers in developing appropriate marketing strategies to ensure that the
project has the potential to reach its customers.
Research Design
To examine the possible respondents in selected beaches, pool and resorts in Lucena
City, Sariaya, and Pagbilao, the researchers will use a descriptive and exploratory design
under quantitative research method. The researchers will be using a purposive sampling
method to determine the number of respondents to be survey, in which the researchers will
select participant from a population.
Descriptive research design objectives are to correctly and thoroughly describe a
population, situation, or phenomena. It answers to questions what, where, when, and how,
but not why. This research design is appropriate to identify the characteristics, trends, and
categories (Mccombes, 2019).
7
Exploratory research design according to Joseph, P. and Winston, K. (2022), The
main purpose of exploratory research is to investigate and acquire preliminary information
that will of help when defining a problem and gain new perceptions to develop a
hypothesis. This type of research is usually used to gain a better understanding of a certain
topic that aren't clearly defined.
Research Locale
Lucena is a developing coastal city which is the capital of the provincial of Quezon.
It has a land are of 80.21 square kilometers or 30.97 square miles with 268,924 population
based on 2020 census. This portrays 1.72% of the total population in CALABARZON
region. Only in 0ctober 20, 2022 it is recognized and awarded as the third most improved
Highly Urbanized city in the Philippines by the Department of Trade and Industry at the
10th Cities and Municipalities Competitiveness Summit 2022. As a well-developed city in
Quezon Province, it is to be expected the boost in tourism in Lucena in the near future.
Sariaya is a first-class municipality in the Philippines' province of Quezon. It is
90.96 kilometers (56.52 miles) away from the national capital. The municipality is wellknown for its beaches, resorts, heritage houses, and hiking opportunities that makes it
popular tourist destination during the summer. It is the only Mount Banahaw town having
a sea coast in both Quezon and Laguna provinces, with a total land area of 24,530 hectares
and a population of 161,868 based on 2020 census of PhilAtlas, that represented 8.30% of
the total population in Quezon province.
8
Pagbilao is proud of its rich culture, colorful history, and prosperous agricultural
business. It is 102.48 kilometers (63.68 miles) away from the national capital. Beneath its
deceptively average façade is a town filled with wonderful food, interesting festivals,
friendly people, and spectacular tourist attractions. Several hotels and resorts can be found
along the roadway or on the beachfront in Barangay Bantigue, which has a beautiful view
of the town's islands. Its population was 20 Census was 78,700, in 2020 census that
represented 4.03% of the total population in Quezon province.
Therefore, the research will be conducted at the selected beaches and resort in
Lucena, Sariaya and Pagbilao.
Research Participant
Guests, beaches and resort owners will be the respondents in this study. The
researchers will use researchers-made questionnaire as their instrument to gather
plausible information from the tourists regarding wood scrap-based souvenirs which will
greatly help them to accomplish the study.
The proponents have been recognized the businesses through the data that has
been provided by BPLO-Lucena, which stated the potential target based is nine (9) resort
and one hundred thirty-two (132) souvenir shop that located in Lucena City.
9
Research Instrumentation
The research instrument that will be use in this study is a researcher-devised
questionnaire that will be distributed for the guests, and beaches and resort owners in
Lucena City, Sariaya and Pagbilao. The questionnaires are divided into two parts which
composed the respondent’s demographic profile as part one which contained their name,
address, age, gender and monthly income. For part two, questionnaires contained questions
about the product that will be important for the study.
Ethical Consideration
The respondents were initially requested for their consent to participate in the study
by the researchers. The objective of the study was given and will be discuss before their
participation to the research. Respondent’s information and confidentiality were
maintained. The participants withdrawal to the study will also be acknowledged by the
researchers.
Data Gathering Procedures
Validated survey questionnaire by the research advisors will be use by the
researchers to collect the important data needed for conducting the feasibility study of
wood scrap-based souvenirs. The researchers will message the social media accounts of
different beaches, pools and resort to be politely ask if they can spare some of their time
10
before going directly to the site for interview. On the other side, the participants will be
given knowledge about the study in advance, and to ask for their consent to be part of the
study before handling the survey questionnaire.
Data Analysis Procedure
After collecting the data through survey questionnaire made by the researchers, it
will be analyzed by the appropriate analytical tool.
The researchers will use simple percentage and simple average method.
Simple Percentage =
Where:
f
𝑵
𝒙𝟏𝟎𝟎
f = frequency of occurrence of the items
N = total number of the items
Simple Average =
∑x
𝑵
Where: x = value of each item
N = total number of the item
11
Table 2.1 Financial ratios that the company will use in the business.
Financial Ratios
Asset Turnover Ratio
Net Profit Margin
Operating Profit Margin
Gross Profit Margin
Return on Owner's Investment
Formula
Total sales / Average Total Assets
Net income / Total sales
Operating profit / Total revenue
Revenue – Cost of Goods Sold /
Revenue
Net Profit / Total Investments ×100
Return on asset
Net income / Average Total Assets
Payback ratio
Initial investment / Net cash flow per
period
Chapter III
MARKET STUDY
The sustainability of the product on the market is covered in this chapter. It will
analyze the primary consumers for the product or target market, projected demand, product
consumption over the next five years, competitive analysis, and the market strategy of the
proposed business for wooden-based souvenirs.
Objectives of the feasibility study
This chapter aims to accomplish the following objectives:
1.
To identify the target market of wood scrap-based souvenirs.
2.
To determine the possible demand from the target market.
3.
To figure out the market’s potential supply.
4.
To identify the Demand and Supply of Wood scrap-based souvenirs.
5.
To determine the market share and projected sales of the product.
6.
To figure out the effective marketing strategies to the business
13
Target market
A target market is a group of individuals selected as the most likely potential
purchasers for a product. Identifying the target market is critical in developing and
implementing a successful marketing strategy for any new product.
The business primary target market are Beaches, Hotel and Resort businesses in
Lucena, Sariaya, and Pagbilao which will sell the product to their guests. This could help
the business to easily spread the souvenir into the market and the area mentioned are rich
in places perfect for summer vacation which tourist seeks. The secondary target market are
individuals who enjoy collecting souvenirs items or wood-based decorations. Local
residents are perceived by the business as potential customers.
Demand
Demand is the consumer’s intention to buy a specific product or service. The
consumer’s willingness and capacity to pay for a product can be determined by the
researcher and can predict potential demand for the business’s products by means of this
study.
In this study the data gathered are used to project the demand of the Souvenirs in
Asia Pacific Region, Europe and America.
14
Consumption for the past 5 years
According to the report of Technavio Research “Gifts Novelty and Souvenirs
Market by product (souvenirs and novelty items, seasonal decorations, greeting cards, other
gift items) and geographical regions (APAC, EMEA, and the Americas) is witnessed to
grow USD 16.33 billion, at a CAGR of 5% from 2018 to 2022”
Table 3.1 Estimated Consumption of Souvenir Items for the Last Five years
Year
Estimated consumption
2018
13,300,887,062.50
2019
14,000,933,750.00
2020
14,737,825,000.00
2021
15,513,500,000.00
2022
16,330,000,000.00
Table shows the estimated amount per year of souvenir, novelty items, seasonal
decorations, greeting cards and other gift items for the last five years in geographical
regions which includes Asia Pacific, Europe, Middle East, Africa, and America. The
proponents used a work back process to calculate the amount of 2018 to 2021, by getting
the 5% which is the compound annual growth rate of USD 16.33 billion. Then, subtracted
to the current year until it reaches to the year 2018.
15
Figure 3.1 Estimated Souvenir Consumption Chart 2018-2022
Supply
The growth of the business depends on the supply of the product. It might have an
impact on the business's management, operations, and most crucially, sales.
The business can have sufficient supply of wood from Lucena. More lumber yards and
wholesalers are available, which is ideal for the product's sustainability.
Supply for the past 5 years
As many as, 95% of furniture companies in the country are classified as SMEs and
the three major furniture production areas, namely Metro Manila, Pampanga and Cebu.
The furniture business is composed of small, medium and large enterprises specialized in
wood furniture and other mixed materials located within the Metro Manila area as well as
nearby peripheral city which are Cavite, Laguna, Batangas, Rizal and Quezon, also known
as CALABARZON. (DTI, 2022). According to the new research report from Global
16
Market Insight, Inc., the global furniture market is expected to reach more than $750 billion
with a CAGR of 5.5% in 2018 up to 2024 in Asia Pacific. In 2017, wood furniture held
over 60 % of the worldwide furniture market and is projected to maintain its dominance.
Since the proposed business are dependent on the scrap of wood furniture's manufacturer,
knowing their market standing is beneficial on the sustainability of woodscrap-based
souvenirs product of the company.
Table 3.2. Furniture Market in Asia Pacific
Year
Market Size
2018
534,136,325,512.04
2019
565,223,624,880.47
2020
598,120,237,968.75
2021
632,931,468,750.00
2022
669,768,750,000.00
2023
708,750,000,000.00
2024
750,000,000,000.00
Figure. 3.2 Furniture Marker Chart in Asia Pacific
17
Competitive Analysis
The company will be competitive with existing business in its field, and to do so,
the researchers will demonstrate the creativity of the product. Unlike other souvenirs, this
one was made from scrap wood which will be converted into a souvenir. The stated product
reduces the need for additional raw materials and contributes to environmental
sustainability for future generations. The product was not be manually carved by the
craftsman but rather, the designs will be leaser engraved by a machine which can also be
customized depending on the customer's preference and order. But due to the product being
laser engraved by the machine doesn't mean that craftsman isn’t needed, as a business in
the field of crafting. Craftsman still plays an important role in the business and they will
be accepted by the business based on skills and experience.
Laser engraved products can be simple yet attractive which will suit the taste of
today's generation and because the business is new to the market, wooden souvenir
manufacturing is both profitable and viable as a small-scale business for startup.
Marketing Strategy
A wooden souvenir manufacturer will have marketing plans in place for several
aspects of the product, including the product itself, price, place, and promotion.
18
Product
The majority of travelers return with keepsakes and souvenirs as proof, making the
souvenir an essential part of the travel experience. People like holding souvenirs of
memorable occasions in their life and being reminded of them.
Every location has a memory to convey, and that is the focus of the business. Business will
establish a small, drop-by souvenir shop where customers may see many types of wooden
souvenir. A beautiful art product with a range of designs that tourists and resort owners
may enjoy are wooden souvenirs. Additionally, the business customizes the clients’
preferred designs. Customers will certainly value the time and work that went into crafting
each one-of-a-kind treasure because the souvenirs are constructed from wood scraps.
Recycling wood can lessen the quantity of trash disposed of in landfills, where it may take
a very long time for it to decompose. Wood may be given a new life through recycling,
extending its useful life and lowering waste.
Table 3.3 Souvenir Items
Fridge Magnet
19
Wall Décor
Key Holder
20
Product Logo
Figure 3.3 Product Logo
A logo provides interesting insight into the company's key values, can be of great
interest to viewers. In that short attention period consumers were able to see the business
in a positive light because of its image. This is a company’s first introduction to consumers.
The public's interest can be aroused if they are designed properly and encouraged to learn
more about the company. This will serve as the foundation of the product brand identity.
Company Logo
Figure 3.4 Company Logo
21
Packaging
Figure 3.5 Packaging
Price
One of the most important aspects of a company’s pricing strategy is pricing. It is
the price of a product is determined by the target market on how much they are willing to
pay.
The pricing of the company will depend on the production cost of the business
which may differ based on the product size. Other aspect which may drive the pricing are
supply costs, seasonal discounts and competitor’s prices. Although it is affected by the
supply costs, the souvenir will likely to be sell at a lower price since it is acquired based
on the wood scrap of other woodcraft products.
22
Place
Figure 3.6 Distribution Process
Travelers can come to store to purchase for gifts for their loved ones or to pick up
a souvenir. The company will produce the item and sell it in the shop which can be found
near New Lucena Welcome Circle. The business can offer the customized product to clients
directly. More specifically, the company will offer wooden-based souvenirs with the
owners of particular businesses, such as beaches, swimming pools, and resorts, by forming
partnerships to help with advertising and promoting the goods to gain more customers.
The researcher chose the location which the route taken of travelers wherein they
mostly likely to stop-over. Additionally, it seeks to advance ethical and ecological tourism
while providing local travelers with an attractive location. Selling souvenirs has long been
suggested as a means of helping local economies benefit from tourists.
23
Promotion
A marketing strategy that focuses on brand positioning and spreading awareness of
the goods and services you provide is essential.
Social media will be used by the business as a marketing tool to advertise the product such
Facebook, Instagram, and Tiktok shop.
Brands may communicate with customers online by leveraging social media to
build a strong media presence. By conveying the business basic principles into a larger
audience, social media technologies may also serve to boost brand awareness. In turn, this
creates the chance to strike up interactions, develop partnerships between businesses, and
broaden the online community in order to get more supporters and possible clients.
Instagram: @A&Amanuf_
Tiktok: @A&A Manufacturing Comp.
Facebook: A&A Manufacturing Company
Chapter IV
TECHNICAL STUDY
The technical side of the business is covered in this chapter. The information on the
product, the uses it has, and the improvements that were made is detailed in this study. The
research also describes the machinery, raw materials, and equipment that will be utilized
to make the product. The research also aims to demonstrate the plant’s size, location,
layout, production schedule, and waste disposal methods.
Objectives of the Technical feasibility
This chapter aims to accomplish the following objectives:
1.
To provide the technical description and uses of the product.
2.
To describe the manufacturing process of the product.
3. To identify the schedule of production.
4. To determine the geographical location, plant size and layout of the business.
5. To determine the direct, indirect materials, equipment, tools and machines required
for the production of the product.
6. To determine the direct labor requirement of the business.
7. To determine the waste disposal system of the business.
25
Technical Product Description
A&A manufacturing company was to create a set of souvenir product made of
wood-based crafts with different kind of items that could be marketed in selected beaches,
pool and resort destinations in Lucena, Sariaya and Pagbilao. The products are made of
local materials such as wood scrap as the main raw materials. The idea was to create
aesthetically pleasing, useful daily life mementos. Anyone visiting to the shops could
purchase souvenir items and take back with them to cherish the memory of visiting Lucena,
Sariaya and Pagbilao. Moreover, A&A Manufacturing Company created a souvenir that
would stand out among the rest and will please customers who are interested in woodbased craft souvenirs. A&A “The Keeper” products are laser engraved designs on fridge
magnet and key holder which can be customized wood carved in wall decor.
A&A “The Keeper" product which includes fridge magnets will be design by a laser
engraver and can be customized, be it the customer's name, favorite cartoon character, their
motto or their pictures. The wall decor is four pieces in a set, the design is attached at the
surface of the polished wood. For Key Holder products, the design is painted by the skilled
craftsman of A&A company which emphasizes the sceneries of the beach’s beauty.
Uses and Benefits
As a Filipino it became part of the tradition of bringing souvenir from places they
visited or destined to be given to the people the left behind as a present to reminisce the
26
experience they had in that particular vacation. The fact that it is built out of scrap wood is
the only thing that sets it apart from other souvenirs. Another approach for people to keep
wood out of landfills is to reuse planks to make souvenirs. The need for cutting down trees
decreases as more wood is recycled. Since tipping costs have increased in recent years to
discourage consumption, recycling wood may be less expensive than putting it in a landfill.
Production Process of Making Fridge Magnet
Figure 4.1 Production process of Fridge Magnet
Description of the Process
Step 1. Preparation
The materials and Equipment needed will be prepare beforehand to avoid delayed in
production.
Step 2. Shaping
Using pencil draw a simple circle to shape the fridge magnet. After shaping the craftsman
will cut the wood using scroll saw cutting machine.
27
Step 3. Sanding
Using 120 grit sandpaper, sanding the rough edges will make the output more attractive
and presentable.
Step 4. Engraving
Place the wood into the laser engraver. Ensure it does not move then begin engrave the
design
Step 5. Varnishing
Apply clear varnish once the design has been engraved.
Step 6. Assembling
Once the varnish has dried, place the magnet behind it.
Production Process of Making Key Holder
Figure 4.2 Production Process of Key Holder
28
Description of the Process
Step 1. Preparation
Preparation of material and equipment before the start of production to avoid any delays.
Step 2. Cutting
The wood scrap will be cut into a rectangular shape with 12 inches width, thickness of 2
inches and 8 inches in height.
Step 3. Sanding
Sanding the rough edges of the shape using a 120-grit sandpaper or sander-grinder. This
will give a smooth and clean edges to the product.
Step 4. Keyhole
Using Dremel drill, make a keyhole at the upper back of the wood. This will hold the
keyholder into the wall.
Step 5. Painting
The craftsman will start the design by drawing an outline using pencil before painting the
wood with beaches design which symbolizes this key holder as a souvenir item.
Step 6. Drying
Drying the paint for 30-50 minutes.
Step 7. Assembling
Using screw driver, attach the hooks at the lower part of the wood.
29
Production Process of Making Wall Décor
Figure 4.3 Production Process of Wall Décor
Description of the Process
Step 1. Preparation
Preparation of material and equipment before the start of production to avoid any delays.
Step 2. Sanding
Smooth the piece of wood that will be used for wall decor with a sander grinder.
Step 3. Cutting the background
Cut the wood to the proper and consistent size; it will serve as the background of the cut
design and set it aside.
Step 4. Cutting the design
Slowly trace the design's pattern onto another piece of wood using scroll saw. It will be
the design that will be attached on the background
Step 6. Varnishing or Painting
30
Paint or varnish the cut design and set it aside to dry.
Step 7. Assembling Hook
Position the D-ring hook hanger behind the wooden backdrop.
Step 8: Attaching
Once the paint or varnish has dry, lay the cut design on the backdrop.
Production Schedule and Production Capacity
Table 4.1 Production Schedule and Production Capacity of Fridge Magnet.
Activities
Preparation
materials
No. Of Hours
of 20 mins
Labor
Inputs
Outputs
-
and
equipment
Shaping
2 hrs
-
Sanding
2 hrs
-
Engraving
1 hr
-
Varnishing
1 hr
-
Drying
30 mins.
Assembling
3 hrs
Table 4.2 Production Schedule and Production Capacity Per Day of Key Holder.
Activities
No. of Hours
Labor
Inputs
Outputs
31
Preparation
materials
of 20 mins
-
and
Equipment
Cutting
1 hr.
-
Sanding
1 ½ hrs.
-
Keyhole
1 hr
-
Painting
1 hr
-
Drying
30 mins.
-
Assembling
1 hr
-
Table 4.3 Production Schedule and Production Capacity Per Day of Wall Decor.
Activities
No. of Hours
Labor
Preparation
20 mins
-
Sanding
1 hr
-
Cutting
the 1 hr
-
the 2 hrs.
-
or 2 hrs
-
background
Cutting
design
Varnishing
Painting
Assembling hook
1 hr
-
Attaching
1 hr.
-
Inputs
Outputs
32
Plant Location
Figure 4.4 Ilayang Talim, Vicinity Map
Figure 4.5 Location
Geographical advantage of the Location
33
The proposed factory site is within the Eco Tourism Road, Barangay Ilayang Talim,
Lucena City and accessible since this road is likely to be used by the tourists or potential
customers passing by means of land transport. The business will occupy 500 square meters
of land of Lot No.620 with a market value amounting to P16,294.36. This land will be used
as a production site for the proposed business. A broad area with a capacity for plant
production is one of the factors to be taken into account in deciding where to locate.
Proponents have chosen that site, given the proximity and accessibility of the facility for
the supplier. In particular, with respect to the delivery of the main product.
Plant Size and Layout
Figure 4.6 Plant Size and Layout
34
Building and Facilities
Figure 4.7 Building Perspective
Cost of Building and Facilities
Table 4.4 Cost of Building
Area
Production Area
Offices
Storage Room
Lobby
Souvenir Shop
Electrical Room
Comfort Room
Parking
Locker Room
Guardhouse
Hallway
Total
No. of
meter
160
50
40
45
40
15
20
60
10
10
50
500
Square Cost per Sq. meter Total cost
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
9,000.00
1,440,000.00
450,000.00
360,000.00
405,000.00
360,000.00
135,000.00
180,000.00
540,000.00
90,000.00
90,000.00
450,000.00
4,500,000.00
35
Land
Total Sq. meter
Cost per sq. meter
Total cost
500 Sq. meter
Php.4,500.00
Php.2,250,000.00
Table 4.5 Cost of Land
This table shows the total cost of 500 Sq. meter of land which is required for the
production of the business. According to Lamudi Philippines, on their site Lamudi.com.ph
which is the leading online real estate platform in the Country, the cost per square meter of
land in Ilayang Talim, Lucena City is Php.4,500.00 which increases of 8.43% changes in
their land price index (May 2023) in the last 12 months.
Raw Materials, Packaging Materials and Factory Supplies
Wood scrap Sawmilling, carpenter's workshops or furniture factories and
unprocessed wood scrap from construction sites such as scaffold supports are all sources
of production waste. Used wood includes wooden building parts and wooden materials
such as wooden packaging which are crates, and palettes, but also wooden furniture.
Varnish a liquid coating material consisting of a resin which dries to a hard
transparent film. Varnishes are commonly made of resins, drying oils, driers and volatile
solvent. This are used to protect wooden surfaces, paintings and other decorative objects.
It can protect and improve the appearance of wooden floor, interior wood panel and
decorations as well as furniture.
36
Magnet, Magnetic sheets are a synthetic rubber-based material that is permanently
magnetized and has a wide range of uses in the signs and graphics industry. In order to
create profiles, tapes and sheets, flexible magnets are produced by combining a Ferrite
magnet material with a flexible rubber binder, which is then extruded or calendared. The
material can be rolled, because of the flexibility of the binder.
Glue An adhesive substance used to stick objects or materials together. A gelatinlike adhesive substance extracted from animal tissue, particularly hides and bones, or from
fish, casein (milk solids), or vegetables. In the construction of Egyptian furniture, glue has
been used as early as 3000 BCE.
Paint is a substance composed of solid coloring matter suspended in a liquid
medium and applied as a protective or decorative coating to various surfaces, or to canvas
or other materials in producing a work of art
Hook or angular piece of metal or other hard substance for catching, pulling,
holding, or suspending something.
Table 4.6 Suppliers of Raw Materials
Supplier's Name
Address
Palochina sa Lucena Ibabang Dupay
Wood crafts
Redv, Lucena city
Loyola
Furniture
Emjasam
Wood Dulong Kalaw,
Kanlurang Mayao
Brgy. GulangGulang
Capacity
to Kind of Raw
supply monthly
Material
to
Supply
10 sacks
Wood Scrap
10 sacks
Wood Scrap
10 sacks
Wood Scrap
Wood Scrap
37
Lucky D5 Funiture
Brgy. GulangGulang
5 sacks
Wood Scrap
Abril Wood Scrap
5 sacks
Philippine Magnetics
Brgy. GulangGulang, Lucena.
Across Ridge Wood
Park
Metro Manila
100 pieces
Magnet Sheet 4A
Citti Hardware
Maharlika highway,
10 Liter
Glue
Brgy. Ilayang Iyam,
10 Liter
Paint
Lucena City.
100 pieces
Hook
10 Liter
Varnish
Table 4.7 Alternative Wood Suppliers
Supplier’s Name
Pekel Wood Trading
SteGan Wood
Manufacturing & Furniture
Shop
Devilla’s Woodworks
Address
Capacity to
supply monthly
Reymar
Compound,
Tayabas-Lucena
Road, Quezon
Purok 4. Sariaya
Quezon
20 bundle
Kind of Raw
Material to
Supply
Wood
20 sacks
Wood Scrap
Tayabas City
10 sacks
Wood scrap
38
Table 4.8 Direct Materials Cost Per Year of making Fridge Magnet
Materials
Unit
Unit Cost
Quantity
Monthly Cost
Annual Cost
Wood Scrap
Sack
100.00
10
1,000.00
12,000.00
50.00
30
1,500.00
18,000.00
5.00
50
250.00
3,000.00
160.00
2
320.00
3,840.00
315.00
-
3,070.00
36,840.00
Magnet Sheet Piece
(A4 size)
Piece
Sandpaper
E600 Piece
Glue,
(59.1 ml)
Total
-
Table shows the materials required for making the products. The wax cord will be
acquired at Php.95.00 per 70 yards, keychain rings for Php58.00 per 100 pcs, earing hooks
at Php.30.00 per 10 pairs, and connector clasps for Php.60.00 per 40 pcs. Above indicated
the monthly and annual cost of direct materials which is Php.4,289.00 and Php.51,468.00,
respectively.
Table 4.9 Direct Materials Cost Per Year of making Key Holder
Materials
Unit
Unit Costs Quantity
Monthly Cost
Annual
Costs
Wood Scrap
Sack
300.00
5
1,500.00
18,000.00
Varnish
Liter
165.00
5
825.00
9,900.00
Sandpaper
Piece
5.00
50
250.00
3,000.00
Hooks
Pack
185.00
5
925.00
11,100.00
39
Total
Materials
-
Unit
655.00
-
3,500.00
42,000.00
Unit Cost
Quantity
Monthly Costs
Annual
Costs
Wood Scrap
Sack
500
8
4000.00
48,000.00
Paint
ML
89.00
5
445.00
5,340.00
Varnish
Liter
165.00
5
825.00
9,900.00
D-Ring hook Pack
288.00
2
576.00
6,912.00
6,846.00
70,152.00
hanger
Total
-
1,042.00
-
Table 4.10 Packaging Materials Cost Per Year
Items
Unit Cost
Quantity
Monthly Cost
Annual Cost
Corrugated
15.00
25
375.00
4,500.00
Paper bag (S)
10.00
30
300.00
3,600.00
Paper bag (M)
12.00
30
360.00
4,320.00
Paper bag (L)
15.00
20
300.00
3,600.00
Packaging
50.00
2
100.00
1,200.00
Php.102.00
-
Php.1,435.00
Php.17,220.00
box
Tape
Total
40
The table shows the list of materials needed by the business for packaging the
products. It indicates the monthly cost and annual cost of the business which is
Php.1,675.00 and Php.20,100.00, respectively.
Table 4. 11 Factory Cleaning Supplies
Items
Unit cost
Quantity
Broom
150.00
1
Quantity per Annual Cost
year
4
600.00
Dustpan
120.00
1
4
480.00
Vacuum
1,200.00
1
1
1,200.00
1
2
560.00
Map
spinner
with 280.00
Garbage Bags
90.00
Per 100 pcs.
100
90.00
Broom stick
30.00
1
4
120.00
41
Trashcan
190.00
1
4
760.00
Total
Php.2,060.00
-
-
Php.3,810.00
Table shows the supplies needed by the business to keep the operation clean. It also
included the quantity of items per year and annual cost of the business.
Table 4.12 Medical Supplies
Items
Unit Cost
Quantity
Medical Tape
30.00
2pcs.
Monthly
cost
60.00
Annual Cost
720.00
Absorbent
240.00
Gauze Sponge
Pad
1 box (100 240.00
pack)
2,880.00
Alcohol
2
2,040.00
85.00
170.00
42
Cotton balls
55.00
1 Pack (300 55.00
balls)
660.00
Betadine
178.00
1
178.00
2,136.00
Face mask
39.00
50 pcs.
78.00
936.00
Band Aid
65.00
100 pcs.
65.00
780.00
Total
Php.692.00 -
Php.846.00 Php.10,152.00
The table shows listed items that are intended to serve as a first aid for employees
in case of emergency. It is important for the company since the craftsman will be dealing
sharp machine for wood cutting. It indicates the monthly cost of the business of Php.692.00
that result to Php.10,152.00 on the first year of operation.
Table 4.13 Utilities Cost Per Year
Utilities
Electricity
Estimated Monthly Cost
15,000.00
Estimated Annual Cost
180,000.00
43
Water
3,000.00
36,000.00
Internet
1,699.00
20,388.00
Total
Php.19,699.00
Php.236,388.00
For A&A Company, Electricity plays a vital in the production of souvenir items and
the business choose Meralco as supplier since they are the leading provider of electricity
in the Philippines. The water supply will be acquired from Quezon Metropolitan Water
District, water will hell the business to maintain cleanliness in the business environment.
It is extremely convenient for the business to communicate via phone and the Internet, this
will help to communicate faster with suppliers and customers, or events contains other
important matters. PLDT, Inc. is a telecommunications and internet services provider is
known as the Philippine Long distance Telecommunication Company. Listed on the table
above are the estimated monthly and annual expenses. Electricity, water and internet
expected expense amounted to Php.180,000.00, Php.36,000.00, and Php.20,388.00,
respectively.
Machineries, Equipment, Tools, Furniture’s and Fixtures
Table 4.14 Machines & Equipment
Description
Purchase Cost
No. Of Units
Total Cost
44
Band saw wood cutting machine
13,500.00
1
13,500.00
Sander Grinder
958.00
1
958.00
Laser engraver
28,500.00
1
28,500.00
Scroll Saw
7,400.00
1
7,400.00
Total
Php.50,358.00
-
Php.50,358.00
Table 4.15 Transportation Equipment
Item
Suzuki Super Carry
Quantity
Unit cost
Total Cost
45
1
Total
580,000.00
580,000.00
Php.580,000.00
Php.580,000.00
Table 4.10 show the vehicle that will be use to distribute the product. Suzuki Super
Carry is powered by an 800cc turbo diesel engine which produces 32hp and 75 Nm of
torque. It has 735kg carrying capacity, with unit cost of 580,000.00 pesos.
Table 4.16 Material Handling Equipment and Tools
Items
Trolly
Purchase Cost
4,000.00
No. Of units
2
Total Cost
8,000.00
Steel Rack
1,200.00
3
3,600.00
Screw Driver
165.00
2
330.00
Total
Php.5,365.00
-
Php.11,930.00
46
Table 4.17 Production Furniture and Fixtures
Item
Purchase Cost
No. Of Units
Total Cost
5
2,250.00
3000.00
1
3000.00
Production Worker’s table 4,500.00
5
22,500.00
Production Workers Chair 450.00
Display Shelving Rack
Total
Php.7,950.00
-
Php.27,500.00
Direct Labour Requirements
Table 4.18
Position Title
Number
Production worker
5
Waste Disposal System
Locating waste disposal sites, figuring out exactly what waste materials were
disposed of and where, figuring out ownership and deciding whether or not disposal
methods were appropriate are all crucial issues in environmental litigation because waste
disposal is a process that directly causes a lot of environmental damage.
To keep the business operation clean, A & A Company will work with the Lucena
City Government and adhere to established waste disposal procedures. The garbage
47
collector will pick up trash as scheduled. The building’s cleanliness will be maintained by
the maintenance personnel as a whole. The company will support the use of
environmentally friendly practices to make the most efficient use of precious resources and
promote resource conservation. One of the most crucial elements in preserving the
facility’s cleanliness and order is waste disposal.
Chapter V
MANAGEMENT STUDY
This chapter covers all aspects of corporate organization. This research also
illustrates the planned business’s capitalization, organizational structure, organizational
policies, personnel requirements, compensation, and legal requirements. The research also
aims to demonstrate administrative equipment, furniture, and fixtures, as well as
administrative supplies
Management Study Objectives:
This chapter aims to accomplish the following objectives:
1. To identify the name and legal form of the business.
2. To determine the capitalization structure of the business.
3. To analyse the manpower requirements and organizational structure of the
business.
4. To estimate the compensation for the personnel.
5. To propose organizational policies.
6.
To identify the administrative equipment, furniture and fixture, and office supplies.
7. To Identify the legal requirements of establishing the proposed business.
49
I. Name and Legal Form of Business
The researchers had the notion to call the business “A & A Manufacturing
Company,” where “A and A” stands for the proprietors’ last names, Agravioso and
Antipolo.
A & A Company will use a partnership form of a business organization. According
to Derin, M. (2023). It's hard to make a large business just by yourself. Considering the
variety of skill and experience required, there's a limit to what you can do alone. The fact
that partners are jointly responsible for the management of a company allows them to make
full use of their own skills and experience. The bottom line is that some companies are able
to achieve considerable success together, rather than separately. Partnerships are very
desirable if you intend to build a lasting, successful and viable business that has real
potential.
II. Capitalization
Table 5.1 Capitalization Structure of A&A Manufacturing Company
Name
Lezlie Ann S. Filipino
Percentage Amount of Shared
of
Capital
Ownership
Brgy. Isabang 50%
Php.7,000,000.00
Agravioso
Lucena City
Veberly
Antipolo
Nationality
E. Filipino
Address
Brgy. Isabang 50%
Lucena City
Php.7,000,000.00
50
Capitalization is the process of providing funds for a firm; it is regarded as the
initial investment or seed money for a start-up. In addition, starting a new firm requires
taking this initial step.
The table above shows the owners name of A&A Manufacturing Company
including their nationality, their address as well as the percentage of ownership and the
value of their shared capital amounting both into Php7,000,000.00
III. Manpower Requirements
Proposed number of employees:
Table 5.2 Number of Employees
Position Title
No. Of Employees
General Manager
1
Production Manager
1
Administrative Supervisor
1
Craftsman
5
Utility Worker
2
Delivery Driver
2
Security Guard
2
Total No. of Employees
14
Business owners require workers who can execute the job well, according to
Kimberlee Leonard (2019), since employee performance is crucial to the overall success
of the organization. To create consistent and unbiased ways for evaluating employees,
business executives must comprehend the main advantages of employee performance. By
51
doing this, it assists in identifying the corporate organization's strengths, shortcomings, and
prospective managerial deficiencies.
Table 5.3 Manpower Requirements
Position
Qualification
General Manager
• Overseeing daily business •
Duties and Responsibilities
operations.
•
in
business
management or a master’s in
Developing
and business administration.
implementing
growth •
strategies.
•
Degree
Good
knowledge
of
different business functions.
Training
low-level • Strong leadership qualities.
managers and staff.
• Excellent communication
• Evaluating performance skills.
and productivity.
• Highly organized.
• Analyzing accounting and • Strong work ethic.
financial data.
•
Researching
identifying
and
growth
opportunities.
• Generating reports and
giving presentations
Administrative
Supervisor
•
A bachelor’s degree in •
business
Ensuring
administration, administrative
that
the
department
management, or a related and its staff carry out their
field.
•
day to day activities.
Candidates must have •
Hiring,
training,
and
experience in the related evaluating employees and
field, such as management or taking corrective action when
financial reporting.
necessary.
• Developing, reviewing, and
improving
administrative
52
• Exceptional competence in systems,
policies,
and
leadership, time, tasks and procedures.
management of resources.
•
•
Working
with
the
Proficient in problem accounting and management
solving, critical thinking, teams to set budgets, monitor
coaching, interpersonal and spending, and process payroll
verbal
and
written and other expenses.
communication skills.
Proficiency in computers,
especially in the MS Office
Production Manager

It
be 
would
advantageous to have a
degree

management.

Estimate
costs
discuss
with problems quickly
expectations.

Scheduling
and
budget
equipment
Excellent organisational
maintenance on a regular
and time management
basis.

skills.

Training new employees.
Competence in dealing
and effectively.

schedule.
business 
in
Creating the production
Exceptional ability to
Purchasing the necessary
materials.
speak and write.
Craftsman
• Use artistic techniques like • Using machines
drawing
• Designing
• Excellent hand control
• Completing all tasks as
•
Have
craftsmanship schedule
experience
•
keen
eye
for
safety
violations
• Strong physical stamina
53
Utility Worker

At least high school

graduate



In charge of maintaining
had
the facilities, grounds,
previous experience as
equipment, and inventory
utility worker.
clean,
Has basic electrical and
maintained, secure, and
mechanical knowledge.
safe.
Know how to clean 
Troubleshooting
Advantageous
if
equipment
tidy,
well-
and
techniques.
Sales Personnel

Excellent

Greet customers.
communication skills.

Helping customers to find

Basic mathematic skills.
what they're looking for

Can maintain friendly
in the shop.
attitude under pressure.



Prior experience in the
items to the customers
retail sector.
with confidence.
Excellent
customer 
Raise
complaints
to
management.
service skills.
Delivery Driver
Provide information on

Male

Valid Driver's license

Clean driving record

Familiar with navigation 
Contact customers for the
systems
details of delivery.

Excellent
management skills

Determines the placement
of the product

time 
Collect payments
Inspects delivery vehicles
and ensures the loading
and unloading process is
safe and secure.
54

Reviewing and verifying
invoices
and purchase
requests for accuracy.
Security Guard
• Communication skills to be •
able
to
Investigate
and
take
communicate appropriate legal action as
effectively
with
especially
in
others, provided for in the company's
stressful accident, incident, trespass,
situations
suspicious activity, safety and
• Good judgment to identify fire incident policy.
the best course of action to •
deal
with
Control
and
monitor
dangerous surveillance equipment, and
situations as soon as they carry
arise
out
inspections
of
buildings and equipment.
• Observational skills to •
Guard
access
points,
immediately notice anything permitting or refusing entry,
out of the ordinary
restraining trespassers, and
• Patience, because they're direct heavy traffic during
often standing for a long start and end of business
time and looking at the hours.
things
happening
around • Complete daily reports,
them.
including
• Drug test
information,
• NBI clearance
surveillance
signatures.
relevant
observations,
footage,
and
55
Organizational Structure
General
Manager
Administrative
Supervisor
Production
Manager
Sales
Personnel
Craftsman
Utility
Workers
Driver
Security
Guard
Figure 5.1 Organizational Chart of A&A Company
Figure Organizational Chart
Organizational charts, sometimes called hierarchy charts, are diagrams that display
the structure of an organization. It emphasizes the various jobs, departments, and duties
that link the company’s employees to one another and to the management team.
56
IV. Compensation
A. Salaries
According to Labor Code of the Philippines also known as the Presidential Decree
of 442, instituting a labor code, revising and consolidating labor and social laws in order
to provide labor protection, promote employment and human resource development, and
ensure industrial peace based on social justice.
Based on ART. 83. The normal hours of work of any employee shall not exceed eight (8)
hours a day.
As stated in ART. 87. Work may be performed beyond eight (8) hours a day
provided that the employee is paid for the overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work
performed beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at
least thirty percent (30%) thereof.
In accordance in ART. 99. The minimum wage rates for agricultural and nonagricultural employees and workers in each and every region of the country shall be those
prescribed by the Regional Tripartite Wages and Productivity Boards.
Lastly, according to, ART. 102. No employer shall pay the wages of an employee
by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other
than legal tender, even when expressly requested by the employee.
57
Payment of wages by check or money order shall be allowed when such manner of
payment is customary on the date of effectivity of this Code or is necessary because of
special circumstances as specified in appropriate regulations to be issued by the Secretary
of Labor and Employment or as stipulated in a collective bargaining agreement.
Table 5.4 Proposed Salaries of Employees
Position
General
Manager
Administrati
ve
Supervisor
Production
Supervisor
Sales
Personnel
Craftsman
Utility
Worker
Delivery
Driver
Security
Guard
TOTAL
No. Of Daily
Emplo Salary
yees
1
1,808.0
0
1
1,555.0
0
Weekly
Salary
Monthly
Salary
Annual
Salary
13th
Month
10,848.00
43,392.00
520,704.00
43,392.00
9,330.00
37,320.00
447,840.00
37,320.00
1
868.00
5,208.00
20,832.00
249,984.00
20,832.00
1
500.00
3,000.00
12,000.00
144,000.00
12,000.00
5
2
470.00
450.00
2,820.00
2,700.00
11,280.00
10,800.00
135,360.00
129,600.00
11,280.00
10,800.00
1
450.00
2,700.00
10,800.00
129,600.00
10,800.00
2
450.00
2,700.00
10,800.00
129,600.00
10,800.00
18
6,551.0
0
39,306.00
157,224.0
0
1,886,688.00
157,224.0
0
The table shows the employee’s daily, weekly, monthly, and yearly schedules. It
shows that the daily wage is derived by dividing each employee’s average monthly revenue
by working 8 hours per day and multiplying it by the number of days worked each week,
which is six. The total will be multiplied by the number of people in each position. To
calculate the yearly cost, multiply it by 12 months, which gives the number of months.
58
B. Mandated Benefits
According to Department of Labor Employment, employees in the Philippines are
entitled to monetary benefits such as the minimum wage, 13th month pay, and overtime
pay, among other things, under the Labor Code. Furthermore, the Labor Code requires
employers to join the Pag-IBIG Fund, PhilHealth, and SSS, as well as make monthly
contributions on their employees’ behalf to these government offices. This ensures that
employees have access to affordable mortgages, health insurance, and social security
benefits, as required by law.
Pag-IBIG is a acronym that stands for Pagtutulungan sa Kinabukasan: Ikaw,
Bangko, Industria at Gobyerno. This program utilize these four sectors of the society to
provide to its members with adequate housing through an effective savings scheme,
(LawPhil, 2023). Employers on behalf of their employees are required to contribute to the
PagIbig Fund (Republic Act 7835) in which provides the lowest interest housing and land
acquisition loans to its members that are payable for 30 years. This will provide every
Filipino worker with the possibility of owning a house through flexible payment strategy
which can directly deduct from their monthly salary, (DOLE, 2023).
The Philippines Health Insurance Company or PhilHealth was created in order to
provide all Filipinos with universal health insurance coverage which will make healthcare
more accessible, available and affordable for many. It also applies to those who are unable
to access quality healthcare immediately. Within 15 years, PhilHealth was to provide
Filipinos with social insurance, (KwinkInsure, 2023). Every employee is required to
59
contribute to this service pursuant to Republic Act 7875. Members shall be provided with
health and hospital care allowances if they or a dependant are admitted to the hospital. The
monthly contributions are based upon the actual wages of the employees and the employer's
contribution is equivalent to each other, (DOLE, 2023).
The Republic Act of 8282 requires that any employee employed by private
companies become a member of the SSS. The system is designed to protect its members if
they are unable to work because of illness, disability, maternity, old age and death or any
other such circumstance not expressly stated but which may result in loss of income or a
financial burden, (DOLE, 2023).
The 13th month pay is computed by multiplying the basic monthly salary to the
number of months have been worked for the entire year, then dividing the results to 12
months.
Table 5.5 Proposed Mandatory Benefit
Position
General
Manager
Admin
Superviso
r
Productio
n
Manager
Sales
Personnel
Craftsma
n
Monthly SSS
Salaries (8.5%
)
43,392
3688.3
2
37,320
3172.2
PagIbig
(4%)
1735.68
Philhea
lth
(2%)
867.84
1492.8
746.4
Monthly
Contribu
tion
49,683.8
4
42,731.4
0
13th
mont
h pay
43,39
2
37,32
0
Annual
Contribut
ion
93,075.84
80,051.40
20,832
1770.7 833.28
2
416.64
23,852.6
4
20,83
2
44,684.64
12,000
1020
480
240
958.8
451.2
225.6
12,00
0
11,28
0
25,740.00
11,280
13,740.0
0
12,915.6
0
24,195.60
60
Utility
Worker
Delivery
Driver
Security
Guard
TOTAL
10,800
918
432
216
10,800
918
432
216
10,800
918
432
216
157,224.
00
13,364 6,288.96
.04
3,144.4
8
12,366.0
0
12,366.0
0
12,366.0
0
180,021.
46
10,80
0
10,80
0
10,80
0
157,2
44
23,166.00
23,166.00
23,166.00
337,245.4
8
The table depicts the breakdown of mandatory benefits offered by the A & A
Company, which is based on the present criteria for contribution payment. As seen above,
the total monthly contributions for all employees are Php.180,021.46 and an annual
Contribution amounted to Php.337,745.48
Table 5.6 Summary of Proposed Compensation for Personnel within Five Years.
Compensation 1st year
3rd year
4th year
5th year
1,886,688.00 1,905,554.88 1,924,610.43 1,924,610.43 1,963,295.10
Salaries
13th
2nd year
month 157,224.00
158,796.24
160,384.20
160,384.20
163,607.92
pay
SSS
13,463.04
13,597.67
13,733.65
13,733.65
14,009.69
PHIL-
6,288.96
6,351.85
6,415.37
6,415.37
6,544.32
PAG-IBIG
3144.48
3,175.92
3,207.68
3,207.68
3,272.16
Total
2,066,808.48 2,087,476.56 2,108,351.33 2,108,351.33 2,150,729.19
HEALTH
The table above summarized the proposed personnel salary and mandatory benefits
for five years using 1% increase per year.
61
C. Organizational Policies
A. Recruitment, Selection, Hiring Policies
The recruitment approach is crucial since it will guarantee that the company
finds employees who are qualified for the position. The business will use Facebook
pages to announce job openings and solicit recommendations as part of its
recruitment strategy. A screening test will be given to candidates to determine
whether they are qualified for the position. Through interviews and consideration
of candidates’ specific qualifications in light of the project under consideration,
selection entails choosing the best candidates for the job. Employees are chosen
based on their willingness to fill the obligations of the position they are seeking for
as well as their ability to fulfill their duties efficiently and effectively in accordance
with their work. Candidates who meet the requirements will be interviewed to
decide whether to hire them or not.
B. Training Program Policies
Training is defined as teaching and learning activities that are carried out
with the primary goal of assisting members of an organization in acquiring and
applying the knowledge, skills, abilities, and attitudes required for a specific job
and organization. (Beach,2020)
62
Newly hired employees must attend an orientation for the training program
that the owner will run. The goal of the orientation and training program is to give
the employees a head start in performing their duties properly and efficiently.
C. Policies on Employees’ Conduct Behaviour
A & A Company is responsible for creating a safe workplace and seeks to
treat all employees with respect and fairness. The rules and regulations outlined
here should be followed by all business personnel while on the job.
1. Every employee must obey the policies, instructions, rules, regulations, and
guidelines that apply to the organization on a regular basis.
2. Employee productivity, safety, and a pleasant working environment are all
priorities.
3. When it comes to work, employees must report to their assigned work location
and be ready to begin at the scheduled hour. Attendance or tardiness that is
inconsistent will not be allowed.
4. Attendance or tardiness that is inconsistent will not be tolerated and may result
in dismissal.
5. The clothing code must be carefully adhered to. Uniforms are required for all
employees. Individuals are expected to look neat and appealing while at work.
63
6. Working while under the influence of alcohol or illegal drugs is prohibited.
7. Every year, an increment will be provided based on individual performance.
D. Policies on Individual Conduct
A code of conduct is designed to ensure that the same standards are respected for
all persons within A&A company. Everyone involved in the company must respect
the rules regardless of his or her differences. By highlighting what is unethical and
what misconduct is, employee becomes aware of what constitutes unlawful
behaviour and are therefore avoiding it, thus this will reduce the conflict at work.
This assists employees with their careers as it keeps their history clear of problems
and helps them advance within the company and externally.
•Abide by the rules, regulations, and laws of the company.
• Be accountable and considerate.
• Maintain a professional attitude.
• Be dedicated and compassionate.
• Be honest and trustworthy.
• Treat one another with respect, decency, and fairness.
•Take actions to protect the company’s reputation, particularly by avoiding the
appearance of impropriety.
•Complete your duties in an efficient and appropriate manner.
64
E. Policies on Conduct Toward Customer
1. Recognize that customers have the right to the best products at the best
prices.
2. In an open environment, collaborate with customers and suppliers.
3. Employees must respect the rules of behaviour of their customers and
suppliers.
F. Safety Guidelines and Policies
1. While at work, all personnel should wear the essential safety equipment and
clothing for their assigned duties.
2. Employees working around moving machinery must tie back their long hair
to prevent it from falling forward and becoming entangled in the equipment.
3. Employees who operate near moving machinery are not permitted to wear
loose clothing or jewellery.
4. At all times, all tools must be kept in their right area; no tools should be left
in any location where they are not being used or stored.
5. All equipment, tools, and machinery must be kept clean and in good
operating order, and any problems should be reported to maintenance as soon as
possible.
65
Administrative Equipment, Furniture and Fixture, and Supplies.
Table 5.7 Administrative Equipment
Equipment
Computer Set
Purchase Cost
10,000.00
No. Of units
1
Total Costs
10,000.00
600.00
1
600.00
Air conditioners
17,999.00
2
35,998.00
Printer
8,800.00
1
8,800.00
Calculator
66
Water Dispenser
4,500.00
1
4,500.00
CCTV cameras
1,000.00
3
3,000.00
Fire Extinguisher
1,200.00
2
2,400.00
TOTAL
44,099.00
-
65,298.00
The table shows the listings of office equipment in the A & A Company's
administrative department, according to its requirements and functional needs. The unit
price is determined by the online price and market price.
67
Table 5.8 Furniture and Fixture
Furniture and Fixture
Front Desk
Purchase Cost No. Of units
3,600.00
1
Total Costs
3,600.00
High Chair
2,500.00
1
2,500.00
Locker
6,000.00
1
6,000.00
TOTAL
12,100.00
-
12,100.00
The A & A Company's list of furniture and fixtures is defined by the company's
needs. The unit cost and overall cost are determined by the online market price.
68
Table 5.9 Administrative Supplies
Item
Unit Costs
Quantity Monthly Cost
Annual Costs
Long bond paper/Ream
180.00
1
180.00
2,160.00
Short bond papers/Ream
170.00
1
170.00
2,040.00
Long folder
7.00
10
70.00
840.00
Short folder
6.00
10
60.00
720.00
Long brown Envelope
5.00
10
50.00
600.00
Short brown envelope
4.00
10
40.00
480.00
Pencil/Box
20.00
1
20.00
240.00
Pen/Box
75.00
1
75.00
900.00
Record book
50.00
2
100.00
1,200.00
Journal book
30.00
2
60.00
720.00
Ledger book
30.00
2
60.00
720.00
Stapler
100.00
1
100.00
1,200.00
Staple/Box
50.00
1
50.00
600.00
Printer Ink
350.00
1
350.00
4,200.00
1,077.00
53
1,385.00
16,620.00
Total
The A & A Company's office supply list is based on the needs of a similar
manufacturing company. The unit cost and total cost are calculated using the current market
pricing which gives a monthly and annual costs of Php.1,385.00 and Php.16,620.00,
respectively.
69
Table 5.10 Medical Supplies
Items
Unit Cost
Quantity
Monthly cost Annual Cost
30.00
2pcs.
60.00
720.00
240.00
1 box (100
pack)
240.00
2,880.00
Alcohol
85.00
2
170.00
2,040.00
Cotton balls
55.00
1 Pack (300
balls)
55.00
660.00
Betadine
178.00
1
178.00
2,136.00
Face mask
39.00
50 pcs.
78.00
936.00
Band Aid
65.00
100 pcs.
65.00
780.00
Medical Tape
Absorbent
Sponge Pad
Gauze
70
Total
Php.692.00
Php.846.00
-
Php.10,152.00
The A & A Company's medical supplies are shown in the table. Every workplace
should have a first-aid kit, guarantee that everyone has access to anything that can save
lives in an emergency (2019, Philippines Medical Supplies).
The medical supply list is based on the needs of a similar manufacturing company.
The unit cost and overall cost are determined by the current market price.
Table 5.11 Office Cleaning Supplies
Items
Broom
Unit cost
150.00
Quantity
1
Quantity per year
3
Annual Cost
450.00
Dustpan
120.00
1
3
360.00
Map with spinner
280.00
1
1
280.00
Garbage Bags
90.00
100 pcs.
200 pcs
180.00
71
Trashcan
190.00
1
3
570.00
Total
830.00
-
-
00
Legal Requirements
Table 5.12 Legal Requirements of Establishing the Proposed Business.
Government
Agency
Security and
Exchange
Commission
City
Mayor’s
Office
Barangay
Documents
Frequency of Payment Total Fee
SEC Registration Certificate
Once a year
25,525.00
Mayor’s Permit
Once a year
2,120.00
Fire Inspection Permit
Business Tax
Once a year
Once a year
50.00
1,254.00
Solid Waste Management Fee
Barangay Permit
Once a year
Once a year
200.00
200.00
Once a year
600.00
Tax Once a year
600.00
Bureau of BIR Registration No.
Internal
Revenue
Corporation’s
Identification Number
TOTAL
-
30, 149.00
72
Project Schedule
Figure 5.2. Gantt Chart
73
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