CHAPTER III
THE MANAGEMENT STUDY
This chapter contains the project schedule of the proposed business which
includes the span time of important activities and tasks; the Gantt chart to be used in
plotting the expected month of tasks to be done. Also, the form of ownership of the
business; the organizational chart; job description and specification in hiring employees;
company rules and management policies; employment benefits and salaries/ wages.
THE PROJECT SCHEDULE
A. FEASIBILITY STUDY
Span of time: February - May 2023
The proposed business provides consumers with fried noodles and
chicken lollipops that are unique unlike any others. It also offers a variety of
flavors of fried noodles along with chicken lollipops. The flavors are as follows:
classic, barbeque, teriyaki, buffalo and oyster sauce. This business study of Ay’
Chix will be located at Betran Street, Capitol Drive, Balanga, Bataan.
The business is established mainly for students, workers/employees, and
passers-by and most especially the residents of Balanga City. Direct selling and
online platforms will be used to encourage customers.
A Sole Proprietorship is a business structure owned by an individual who
generally has full control and authority over the business. The business owner is
referred to as the “sole proprietor” and exclusively owns all assets and profits of
the business. The owner is also personally liable for all the debts and losses that
the business might incur. (PBR, 2023)
A feasibility study is carried out on a business idea or any other enterprise
with the goal of determining whether the business idea is workable and
practicable. It can also be used as a stepping stone for those who want to start
their own business, not just students. In addition, The feasibility study will also
serve as a guide and stepping stone for the researchers in the future if they
decide to start their own firm.
B. FUNDING OF CAPITAL
Span of time: June - July 2023
At this stage, it encompasses the business’ financial components. It must
observe every angle that requires initial funding. Sole proprietorship often
requires relatively small amounts of initial and follow-up capital. In most cases,
funding for a sole proprietorship may originate from the proprietor in order to
launch and establish the business. For a firm to get off the ground, few things
must be taken into account, with finance being the crucial. And the owner’s
savings will generate the capital needed.
C. LEGAL REGISTRATION AND SECURING PERMITS
Span of time: July 2023
All the legal procedures and requirements for the start of the business must
be accomplished during this period. Securing business permits from Municipal or
City Government, Security and Exchange Commission (SEC), Bureau of Internal
Revenue (BIR), Department of Trade and Industry (DTI), Department of Labor and
Employment (DOLE), Social
Security
System
(SSS)
and
Sanitary Permit. The
importance of business permits is to prove that the business is legal and helps to prove
that every food to offer is safe and secured.
D. PURCHASING, CONSTRUCTING AND CUSTOMIZING OF THE STORE
AND/OR LEASE IMPROVEMENT
Span of time: July 2023
The product and its components must be stored, handled, transported, and kept
in such a way that they are protected from rotting, contamination, and illness.
The furniture and tools used to manufacture flour or meal food products must be
properly arranged, and the floor must be maintained clean and dry.
Ay’ Chix store was built by the government and as of now there’s no rental fee
and proponents will only pay for the water and electricity. Upon checking the place, it
was built, aired, and kept in a clean and sanitary manner, as well as screened against
flies and equipped with appropriate wash basins. Clean the sinks and toilets, which
must be maintained clean and sanitary.
E. ACQUISITION AND INSTALLATION OF EQUIPMENTS
Span of time: July 2023
This period covers the selection and procurement of tools and equipment used in
production. The proponents will start to buy the best quality tools and equipment that is
needed to fully operate the business. The proponents will choose the best quality tools
to prevent unforeseen events leading to negative feedback to customers and bogging
down the business.
F.CONTRACT SIGNING WITH THE SUPPLIERS
Span of time: July 2023
The period covers contract signing with suppliers of raw materials to be used for
production. Quality is the main objective of the business which can bring pleasure and
safety to its customers. Once you have decided to do business with a supplier, it is a
good idea to document the terms of trade in a contract. If any problem occurs during
their operation, the suppliers will become liable to it as stated in the contract signed by
the supplier.
G. HIRING SELECTION AND ORIENTATION OF THE EMPLOYEE
Span of time: July 2023
In this period, the proponents will start the hiring and selection of personnel for
specific positions. After being qualified, orientations will be given to employees to have
knowledge regarding the business. Preparations such as the procedures and control in
the manufacturing of the product,
handling
of cash and
the right approach to
customers will be taught to employees in order to build up their confidence and
increase productivity that will help them sustain motivation in their current state,
as well as in the future. There are also factors to consider that significantly influence
the employees on how they will maintain
a positive
impression
in
the working
environment by recognizing their hard work and advocating balance in life and
work. Safety procedures will be extensively employed to assist the employees with
working safely.
H. ADVERTISING AND PROMOTION
Span of time: July 2023
The primary goal of advertising and product promotion is to draw customers'
attention to your product and encourage individuals to purchase in your business.
Having enough time to notify people about the product by simply distributing flyers,
posting
through
social media platforms like Facebook, and informing the public
verbally will make the business known. The goal of the proponents is to make the
product well-known in order for people to recognize and buy the product
I.
START OF THE OPERATION
Span of time: August 2023
The business will officially open and begin regular operations during this time.
Customers will receive promos when they purchase a product during business hours or
during the day. This will be to the customers advantage and to give them satisfaction
with a delicious and convenient product that serves at a reasonable cost.
GANTT CHART
TASK
2023
FEB
MA
R
APR
MAY
FEASIBILITY STUDY
FUNDING OF CAPITAL
LEGAL REGISTRATION
AND SECURING
PERMITS
PURCHASING,
CONSTRUCTING AND
CUSTOMIZING OF THE
STORE AND/OR LEASE
IMPROVEMENT
ACQUISITION AND
INSTALLATION OF
EQUIPMENTS
CONTRACT SIGNING
WITH THE SUPPLIERS
HIRING SELECTION
AND ORIENTATION OF
THE EMPLOYEE
ADVERTISING AND
PROMOTION
START OF THE
OPERATION
Table 3.1. Project Schedule of the Study
JUN
JUL
AUG
SEP
OCT NOV DEC
FORM OF OWNERSHIP
The proponents established a sole proprietorship business ownership. A Sole
Proprietorship is a business structure owned by an individual who generally has full
control and authority over the business. The owner exclusively owns all assets and
profits of the business and is personally liable for all the debts and losses that the
business might incur.
The proponents derived this idea because sole proprietorship provides an
effective way to set up a business. Many businesses may later expand to a more
traditional structure as they grow, but the sole proprietorship provides a solid first step in
business ownership.
A sole proprietorship needs to record all profits on their personal income taxes,
which means that the owner is solely responsible for the entity's liabilities, losses, and
debts. A sole proprietor owns all of the company's assets and income and is allowed to
blend corporate and personal holdings.
ADVANTAGES
A sole proprietorship provides a simple and cost-effective way to set up a
new business. For many people who work for themselves, sole proprietorship means
that the sole owner of the business has complete control over all business decisions.
Additionally, tax preparation is typically less time-consuming as owners report all profits
on their personal tax returns. Easy to manage, with no necessary formalities or
regulations about having a board of directors, committee, or meeting minutes. The sole
proprietor acquires all assets and profits of the business and can freely mix business
and personal assets.
DISADVANTAGES
In a sole proprietorship, the owner and entity are considered one and the same.
While this may be beneficial in some respects, it also means that the sole proprietor
does not have legal protection and can be held personally liable for the business.
Without this legal separation, personal assets of the owner are not protected; that
means vehicles, houses, and other collateral can be seized because of company debts
or if the company is the target of legal actions.
Banks often hesitate to lend to a sole proprietorship, making it difficult to raise
capital to invest in the business. Sole proprietorships rarely survive the death or
incapacity of their owners and hence do not retain value. Business bankruptcy affects
the owner personally. Personal lawsuits against the sole proprietor can potentially
consume all their personal assets and negatively affect the financial aspects of the
business.
ORGANIZATIONAL CHART
JOB DESCRIPTION AND SPECIFICATION
Job description describes a position's responsibilities, tasks, obligations, and
purpose. It specifies who does particular types of work, how that work is to be
performed, how frequently the work is to be done, and its purpose in relation to the
mission and goals of the company. A job specification outlines the credentials,
background, education, and competencies that the job holder needs in order to execute
the job. The main goal of this study is to choose, hire, train, and counsel each person in
accordance with the skills and abilities, competencies, and knowledge needed by the
business.
POSITION: Manager
QUALIFICATIONS:
● Male/ Female
● Bachelor’s degree in business, management, or related field.
● At least 1 year experience as a business manager or relevant managerial role
● At least 24-45 years of age
● Excellent communication, interpersonal, leadership, coaching, and conflict
resolution skills.
● Time and project management skills.
● Commitment to providing exceptional service to customers and support to
staff members.
● Strong understanding of business management, financial, and leadership
principles.
DUTIES AND RESPONSIBILITIES:
● Delegating responsibilities and supervising business operations.
● Hiring, training, motivating and coaching employees as they provide attentive,
efficient service to customers, assessing employee performance and providing
helpful feedback and training opportunities.
● Establishing and achieving business and profit objectives.
● Resolving conflicts or complaints from customers and employees.
● Ensuring staff members follow company policies and procedures.
● Other duties to ensure the overall health and success of the business.
UNIFORM:
Figure 3.2. Manager
POSITION: Cook
QUALIFICATIONS:
● Male/ Female
● Diploma from a culinary school will be an advantage
● At least 1 year experience as cook
● TESDA certificate in Food and Beverages NC II
● Endurance to work for long hours.
● Flexible work hours.
● Can work under pressure.
● Ability to remain calm and professional with difficult customers.
● Excellent interpersonal skills.
● Excellent organizational and time management skills.
DUTIES AND RESPONSIBILITIES:
● Knowledge of safety procedures, including safe temperatures at which
ingredients must be kept and to which food must be prepared to avoid
foodborne illness
● Ability to work as part of a team
● Interpersonal skills to interact with a variety of other people, such as waitstaff,
dishwashers, management and sometimes customers
● Calm demeanor to work in a high-stress, fast-paced environment
● Accountability for the dishes they prepare measuring up to the expectations of
management and customers alike
● Comprehension and organization to follow direct orders and recipes and to
correctly prepare dishes to the standards of the restaurant
● Manual dexterity and hand-eye coordination to handle tools, such as knife
techniques for chopping, slicing, cutting and dicing
● Ability to stand in one place for hours at a time, handle extreme heat and work
shifts
● Maintain a clean and safe work area, including handling utensils, equipment and
dishes
● Handle and store ingredients and food
● Maintain food safety and sanitation standards
● Clean and sanitize work areas, equipment and utensils
● Execute opening and closing procedures
● Set up workstations with required ingredients and equipment
● Check the quality and freshness of ingredients
● Monitor station inventory levels
UNIFORM:
Figure 3.3. Cook
POSITION: Cashier
QUALIFICATIONS:
● Male/ Female
● At least high school graduate
● TESDA certificate in Food and Beverages NC II
● Endurance to work for long hours.
● Flexible work hours.
● Can work under pressure.
● Ability to remain calm and professional with difficult customers.
● Excellent interpersonal skills.
● Excellent organizational and time management skills.
DUTIES AND RESPONSIBILITIES:
● Greet customers upon arrival great attitude
● Operating cash registers quickly and accurately
● Receiving payments and issuing receipts, product
● wrapping/packaging and keeping track of all cash and credit
● transactions.
● Answering customer questions
● Balancing cash registers
● Handling returns, exchanges and complaints
● Inform customers of any specials or promotions running currently
● Answering phones as needed for online transactions
● Ensure product is delivered to the customer
● Maintaining a safe, clean, sanitize and organized work environment\
● Helping fellow service staff solve problems
● Helping with stocking, cleaning and other duties as needed
● Thank customers for their business, invite them to return
● Complete all side work at end of shift
POSITION: Delivery Driver
QUALIFICATIONS:
● Male
● At least high school graduate
● Valid driver's license issued by the state where you intend to work.
● Clean driving record.
● Willingness to adhere to assigned routes, schedules, safety procedures, and
transportation laws.
● Strong time management and customer service skills.
● Ability to walk, drive, lift, and carry heavy items for extended periods.
● Attention to details.
DUTIES AND RESPONSIBILITIES:
● Loading, transporting, and delivering items to clients or businesses in a
safe, timely manner.
● Reviewing orders before and after delivery to ensure that orders are
complete, the charges are correct, and the customer is satisfied.
● Assisting with loading and unloading items from vehicles.
● Accepting payments for delivered items.
● Providing excellent customer service, answering questions, and handling
complaints from clients.
● Complete logs and reports
● Follow DOT regulations and safety standards
UNIFORM:
Figure 3.4. Delivery Driver
OPERATING PERIOD
The business will operate 10 hours a day. It opens at 9 o'clock in the morning
and closes at 7 o’clock in the evening. The operation of the business would be 6 days a
week from Monday to Saturday. Sunday will be the rest day for the employees.
COMPANY RULES
EMPLOYEES REQUIREMENTS
The following are the necessary general requirements in hiring
personnel in any of the positions:
● Resume with latest 4 pcs 2 x 2 picture (colored & white background)
● Police, NBI, and Barangay Clearance
● Medical Certificate (fit to work) / Health Card
● SSS and TIN Number
● PhilHealth
● Birth Certificate / PSA
● Photocopy of any existing I.D
OFFICIAL TIME OF WORK
Paid time that starts when temporary workers are engaged at a worksite, and
stops when they are released. Most employees work from 8:00am to 8:00pm from
Monday to Saturday.
OVERTIME
Employees are required to have overtime if needed. They have at least 2 hours a
day if needed to do so. They are entitled to overtime pay 10% of their salary.
BREAKTIME
Employees / staff are provided with one (1) hour lunch break and for delivery
drivers, they are allowed to have some snacks or water break in between duties.
HOUSE RULES AND REGULATIONS
Employees must follow these policies when it comes to the business's
operational activities:
1. Always wear proper uniform during working hours. Especially hair net and apron.
2. Employees are required to observe regular and punctual attendance, absences
and tardiness are all counted.
3. Cleanliness and proper hygiene should be followed and observed at all times.
4. Smoking and drinking of alcoholic beverages are strictly prohibited while working.
5. Cleanliness of the area should always be maintained.
6. Eating in working hours is prohibited, there will be a given time to take a break
except for the delivery drivers.
7. Keep your appearance clean, cut and professional.
8. Sleeping during working hours is not allowed even without customers.
9. It is not forbidden to use a cell phone while on duty. It should not be misused and
kept to a bare minimum. During breaks and off-peak hours, cell phones should
be used.
10. Ensure a working atmosphere and a workplace free of sexual harassment,
sexual intimidation, and sexual exploitation of or by employees.
MANAGEMENT POLICIES
TYPES OF EMPLOYMENT
PROBATIONARY
Is hired on a trial basis to afford the employer an opportunity to
observe the fitness of a probationary employee while at work, and to ascertain whether
he will become a proper and efficient employee. A six (6) -month probationary period is
standard. A probationary period is a period after someone starts a job, during which
their employer can decide whether the person is suitable and should be allowed to
continue.
PERMANENT/ REGULAR
Employees hold a job where employment is expected to continue
on an ongoing basis, and can only be terminated for specific reasons. Permanent
employees work for an employer and are paid directly by that employer. Permanent
employees do not have a predetermined end date to employment. In addition to their
wages, they often receive benefits like subsidized health care, paid vacations, holidays,
sick time, or contributions to a 401-retirement plan.
Regular or Permanent Employment is when an employee performs activities that
are usually necessary or desirable in the usual business or trade of the employer. They
enjoy the benefit of security of tenure provided by the Philippine Constitution and cannot
be terminated for causes other than those provided by law and only after due process is
given to them.
EMPLOYMENT BENEFITS
Social Security System (SSS)
SSS is a social insurance program that aims to provide protection to its
members and beneficiaries, while GSIS serves as the counterpart social
insurance program for those who work in government. SSS members can avail of
maternity, sickness, disability, retirement, funeral and death benefits. SSS also
allows qualified members to take up salary, housing, business, educational loans.
PhilHealth
PhilHealth implements the National Health Insurance Program that aims to
provide Filipinos with financial assistance and access to affordable health
services. It covers hospital costs, subsidy for room and boarding, medicine, and
professional services.
Leave Benefits
Many companies offer leave benefits that allow employees to take time off
from work for various reasons. Leave benefits – whether paid, unpaid or partially
paid – are generally an agreement between the employer and employee, or
employees representative (such as a union).
SALARIES/ WAGES
The employee's salaries will be given by cash and we will deduct the taxes
in their salaries monthly like the SSS,Philhealth and Pagibig and the deduction of
taxes is dependent on the monthly wage of the employees and the salaries will
be given to the employees monthly.
Position
Number of
Personnel
Daily Wage
Monthly Wage
Manager
1
Php 580
Php 15,660
Cashier
1
Php 450
Php 12,150
Cook
1
Php 450
Php 12,150
Delivery Rider
1
Php 380
Php 10,260
Total
4
Php 1,860
Php 50,220
Table 3.2 Staff complement and compensation plan (Daily and Monthly)