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Chapter IBACKGROUND OF THE STUDY

Introduction

The technology available to the generations preceding this generation

pales in comparison to the technology available to this generation. The methods

of education have also changed from generation to generation. There is a direct

connection between the technology available and the education practices. All of

the technological advancements made in education have allowed students to

access vast stores of information and because of these advancements it became

easier to get by without learning, and, on the other hand, learn in a much more

efficient way. (Pandey, et al., 201!.

The education sector is not new in adapting technological advancements.

Available resources were targeted to utili"e and to enhance the way students are

being molded. #ifferent academic wor$s are given to the students as part of their

learning. %tudents are re&uired to submit movie reviews, essays, theme writings,

researches, thesis write'ups and many more. ost of those academic wor$s

involve the use for printing services. This creates a greater demand for printing

services.

ost universities and colleges recogni"ed this need for printing services,

creating in'house printing centers or laboratories. )thers also created student

print program where part of the students* school fees is allocated for printing

services and this leads to efficiency among students.

+atangas %tate niversity, having ten campuses, is one of the universities

here in +atangas province with the biggest number of student enrollees. The


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university strives to provide &uality services to each and every student. -n ain

ampus -, located in +atangas ity, students are provided access to internet

facilities. omputer laboratories are also provided. -t provides a helping hand for

students who do not have personal computers, and those who do not have

internet connection at home. -t helps students to progress with their studies. This

accessibility and facilities would have been more efficient if the students can

have a better access towards printing services that is not only affordable but will

also help them save time and effort.

The proponents of this study came up with the idea of addressing the

need for printing service within the university for the students of +atangas %tate

niversity ain ampus -.

Brief Bac!round of the Stud"

The proponents focused on printing services because it is one of the

evolving needs of the students from high school up to college. -nvestment for

personal printers is not an option for most of the students. The university only

has one printing shop that caters most of the integrated school students, yet the

needs of college students are far greater than them. They have to rely with the

$ind of service offered by the printing shops outside the university.

The proponents opted to have a printing center within the university to

bring accessible, &uality yet affordable printing service to the students of the

university. There would be number of printers that would be available in the

printing center to cater large volume of prints. %ervices that the students need

towards &uality education should be within their reach.


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+atangas %tate niversity (+at%tate! ain ampus - is where the

printing center will be placed considering the different advantages the firm may

get. -t has a huge population of students from the -ntegrated %chool up to college

level sharing a common need i.e. printing. +y observing the current situation, this

need is not being fully fulfilled by the eisting service providers. Printing services

currently available is either inconvenient or too epensive for the students. The

proponents of this study are loo$ing forward to getting a good mar$et share

because of these factors.

O#$ecti%e& of the Stud"

The main obective of this study is to determine the feasibility and viability

of establishing %ir ar$*s Printing %ervices, the provider of the proposed service

in +atangas %tate niversity ain ampus -. %pecifically, it see$s to

1. To determine the mar$et viability of the proposed service, %ir ar$*s

Printing %ervices by identifying its target mar$et and through the demand and

supply analysis situation3

2. To assess and determine the etent which the %ir ar$*s Printing %ervices

meets criteria of technical soundness3

/. To discuss a comprehensive management system to be used by the

establishment to be able to achieve its goal3

4. To determine the epected financial performance and evaluate the

financial viability and capability of the %ir ar$*s Printing %ervices3 and

. To identify the benefits and contributions of the proposed service in the

socio'economic outloo$.


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Scope and 'i(itation& of the Stud"

This study is formulated to determine the viability of establishing a

business that will provide a printing service in +atangas %tate niversity ain

ampus -. -t will comprise all the mar$eting, technical, management, financial as

well as socio'economic considerations that would serve as the basis in

determining the scope and limitations to assist its user to comprehend the

proposed feasibility.

The mar$et aspect of the study will focus on determining the mar$et and

analy"ing the demand and supply situation. This aspect also covers the different

mar$eting procedure and methods, and %5)T Analysis for the proposed

business in order to scrutini"e the viability of the proect. The proponents used

descriptive method of data gathering in determining the mar$etability of the

service offered, wherein random sampling was used to get the sample population

si"e of the target mar$et as well as their behavior towards the proposed service.

)n )ctober 26, 201, the proponents performed interview and survey to gather

information where the total respondents are 12, 247 student'enrollees for the

school year 2014'2013 76/ of them were from the 8raduate %chool3 1, /71 were

students of the -ntegrated %chool 8rades 9 to 103 and the remaining 10, 162

college students on from different departments of +atangas %tate niversity and

other establishments that provide the same $ind of service.

%ample si"e was used to represent the total population with percent

margin of error. -t may not actually represent the entire population. The time

when the survey was conducted may also affect the proection of demand. The


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respondents to determine the supply was limited to those located near the

university. )ther data was gathered through some interviews.

The technical aspect deals with the ac&uisition of materials needed for the

performance of the service, the manpower re&uirements and other legal issues

needed to be settled before the start of operation. The $inds of printers to be

used were properly identified. The basis for the estimated annual printed pages

was the computed mar$et gap, trying to fulfill the unsatisfied demand. The prices

were estimated base on the movements of prices of the competitor. Also, the

actual location within the university was not yet established, subect to the

recommendation of the :esource 8enerating )ffice of the university. The time

and motion indicated in the service operation flowchart may not reflect the actual

time because it is ust based on estimation.

)n the other hand, the management aspect would mainly discuss the

structure of the business and the initial capital contributions of each partner. -t

enumerates the ob description and specification of the employees. The number

of wor$ers is limited to two individuals. )rgani"ational policies are limited to the

policies formulated by the management. -t also deals with the legal re&uirements,

fees and policies to be implemented within the business.

The financial aspect of the study covers all the monetary information of the

enterprise. -t focused on the initial capital needed by the business and the

proected financial statements of the business in five years of operation. The

average inflation rate used in this study is 1./ percent that was used to increase

the cost every year. All other financial data are limited to the assumption that the


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proponents have been established. These are limitations to the financial

feasibility aspect.

The socio'economic aspect would cover the possible benefit or effect of

establishing the proposed business on the community and the whole society. -t

also deals with the contribution of the business to the Philippine economy li$e

creating obs in order to increase the employment and uphold the economic

conditions. -t also includes the social responsibility of the business for the welfare

of the employees and customers as well as providing a safe environment for

everyone li$e providing proper waste disposal system. The limitations that the

proponents would possibly encounter are the absenteeism of the wor$ers, which

could hamper the reali"ation of desired outputs.

Definition of Ter(&

The following terms are used in the study. ;ach item is given its theoretical

definition ta$en from various reference materials and operational definition, which

is how they are used in this study.


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Tar!et )aret* -t is the set of buyers that shares common needs or

characteristics that the company decides to serve (8ary, et al., 2011!. -n this

study, it will refer to the high school, college, and graduate school students of

+atangas %tate niversity ain ampus -.

Te+t docu(ent* -t refers to written, printed, or online document that

presents or communicates narrative or tabulated data in the form of an article,

letter, memorandum, report, etc (ohod, et al., 2014!. -n this study, tet

documents would refer to documents that clients of the business provide to be

printed.

,rintin! Ser%ice* -t refers a variety of print and document'related services

(http


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Chapter II)ARKET STUDY

The mar$eting aspect is considered the life blood of virtually all the

feasibility studies for the etent of the data and information gathering because

the succeeding aspects depend largely on it. (->igo, 2010! -t provides a

reasonable basis in identifying the feasibility of a proposed product or service, in

order to determine if it is feasible to the mar$et.

-n this chapter, the study of supply and demand and other factors

concerning mar$eting plans of the proposed service will be discussed.

Additionally, this also involves identifying the service*s strength and wea$ness

including the threats and opportunities in entering the mar$et. ?arious mar$eting

strategies can be applied such as analysis of the past, present and future

demand of the proposed business.


The general obective of the study is to determine the mar$et viability of

the proposed service by identifying its target mar$et and through the demand and


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supply analysis situation. -t attempts to discuss the following obectives

specifically

1. To determine the target mar$et of the proposed business3

2. To ascertain the si"e, nature, and growth of demand and supply of the

product


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The proponents of the study used the descriptive method of research to

ascertain and be able to describe the characteristics of the variables of interest in

a situation. #escriptive research study is concerned with describing the

characteristics of a particular individual or of a group (@othan, 200=!.

The proponents used the descriptive method of data gathering in

determining the mar$etability of the service offered, wherein random sampling

was used to get the sample population si"e of the target mar$et as well as their

behavior towards the proposed service. The proponents utili"ed the use of the

instrument survey'&uestionnaire which contains relevant &uestions pertaining to

the necessary information such as the demand for the service, fre&uency of

availing the service, the willingness of the target mar$et to avail the service, and

other facts essential to the proect which was distributed to the students of

+atangas %tate niversity ain ampus -. The proponents also gathered

necessary information through direct interviews to be able to formulate

techni&ues and procedures to be used in arriving to a reliable outcome of the

study.

Re&pondent& of the Stud"

The proponents of the study considered the students of +atangas %tate

niversity (+at%tate! ain ampus -, ecept for the pre'elementary and

elementary, to be its primary respondents for the study. They were also

considered to be the target mar$et of the service that is proposed to be provided.

Their desire for affordable and &uality print in a more accessible manner

correlates well with the proected service to be offered by %ir ar$*s Printing


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%ervice. The number of total population came from the :egistrar*s )ffice of

+atangas %tate niversity ain ampus - (%ee Appendices!. etters of re&uest

addressed to proper authorities were sent by the proponents to the said office for

them to be granted with such information.

Accordingly, there were 12,247 student'enrollees for the school year

2014'2013 76/ of them were from the 8raduate %chool3 1,/71 were students of

the -ntegrated %chool 8rades 9 to 103 and the remaining 10,162 were college

students from different departments, first year to fifth year.

-nformation was also obtained from the eisting printing service providers

near the campus to determine the past and present supply of the service and to

be able to proect future demand. The proponents considered the proimity of the

related service providers to the university in identifying in choosing whom to

address the survey. ost of them where so'called branches of service providers

located in other areas of +atangas, mostly operating from one to five years. Two

of them were computer shops that provide printing as supplementary service that

they provide to their clients. The others centrali"ed their operation in providing

varieties printing services.

Data Gatherin! In&tru(ent

To be able to establish concrete data and facts, the proponents elected

the use of survey'&uestionnaire and interview method as the research gathering

instrument to be used in studying the mar$et.

The survey'&uestionnaire has been used increasingly to in&uire about the

opinions and attitudes of a group. -t is a maor instrument in data gathering and is


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used to secure information from a varied and widely scattered source. %urvey

was done by creating set of &uestions and distributing them to the target

respondents. To come up with the possible research &uestions, the proponents

conducted mere analytical observations on the particular behavior of the target

mar$et towards the proposed proect.

The proponents prepared two survey'&uestionnaires, one for the

consumers or the service users and another for the eisting printing service

providers near the university. The survey'&uestionnaires that were used by the

proponents underwent to form and content validation by their adviser, panelist,

grammarian and eperts for accuracy and appropriateness before its proper

distribution to the respondents of the study. The &uestionnaires were supported

with formal letters which informed the respondents of the purpose of the survey.

The proponents also used the %lovin*s formula in order to have the ideal sample

si"e of the respondents for the study.

The two survey &uestionnaires that the proponents designed were for the

consumers or the clients and for the eisting printing service providers. The

survey'&uestionnaire for the target mar$et was composed of three parts first was

about the respondents* profile3 second pertains to the respondents* behavior

towards the related services already offered3 and lastly, in&uiry of the

respondents* willingness to avail the service that is to be offered.

The &uestionnaire for the eisting printing service providers included the

printing service provider profile included the form of business they belong, how

long their business has been eisting and their annual sales for the past five


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years. The information that the proponents gathered from them enabled them to

$now the supply or the availability of printing services.

-nformal interviews were also performed to reasonable persons to obtain

enough information regarding the location suitable for the proposed product and

possible sources of direct materials. The proponents spent time researching in

different libraries, reading boo$s, maga"ines and other unpublished materials as

well as surfing the net for the needed data. %econdary information that can be

gathered from websites with related topics, boo$s, unpublished documents

(including other feasibility studies and theses! and some local government offices

were also considered by the proponents to gain necessary information.

Data Gatherin! ,rocedure&

#ata gathering procedures deal with the process of how the proponents

gathered necessary information relevant to their study.

ollection of the data is considered the $ey for a successful study. -t

served as a foundation through which analysis, interpretation and evaluation of

data were made. To achieve better outcome, there is a need to have a well'

planned strategy. This may include construction of detailed and feasible steps

and efficient and effective use of time, money and other significant factors that

are involved in the operation.

The survey is very important in the analysis of consumers* needs and

wants. They defined the obective of the study to point out needed information for

the study. A preliminary survey was conducted to test the fitness and

appropriateness of the &uestions given to the target mar$et.


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A pre' survey conducted to some students was eecuted in order to

access the possible degree of acceptance of the service as well as the products

of the proposed service. This encouraged the proponents to carry on with the

study with the belief that it would be feasible. -t also tested the survey'

&uestionnaires* validity and reliability on gathering the information needed for the

study. The dry'run or pre'survey was done in +atangas %tate niversity ain --

ampus in Alangilan, +atangas and into the nearby printing shops on the first

wee$ of class on month of Bune 201. Thirty (/0! consumers which came from

different year levels and departments, and ten (10! eisting printing service

providers near the campus, became the ideal number of respondents for the dry'

run.

The proponents conducted the actual survey at the +atangas %tate

niversity ain ampus - in the month of Bune 201. The survey covered

students from the 8raduate %chool, olleges, and -ntegrated %chool. The

proponents of the study went different school buildings and randomly as$ed

students to answer the &uestionnaire they prepared. The survey for high school

and college students were conducted on wee$days while for the graduate school,

wee$ends. The proponents eplained to them the obectives and the significance

of the study and assured the respondents that the information gathered would be

handled with utmost confidentiality.

The total number of respondents that were surveyed was determined with

the use of %lovin*s formula. 5ith respect to the total population of the university,

/49 out of /=9 were willing to avail the service being proposed or around =6


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percent of the target mar$et. Crom the tallied results from the survey, proections

relevant with the study were established (%ee Appendices for the complete tally!.

-n addition, another type of data gathering procedure that the proponents

used is the library research. The proponents visited the library to gather data

from already tabulated sources li$e eisting proect feasibility studies and other

research boo$s.

Stati&tica- Treat(ent of Data

+ased on the data that were gathered from the :egistrar*s )ffice of

+atangas %tate niversity ain ampus -, the total number of the student

population for year 201 was properly indentified.

-n this study, stratified random sampling techni&ue was used in selecting

the respondents of the study from the total population. The respondents were

segmented based on which of the three they belong (8raduate %chool, ollege

or -ntegrated %chool!3 and their year level and course program (for college

students!. The total number of respondents was determined through %lovin*s

Cormula wherein

n =

N

1 + N e2

where n D sample population si"e

N D total number of students in +at%tate ain ampus - (ecluding pre'

elementary and elementary students!

e D margin of error (E!

n =12,247


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1+ [12,246 (0.05)2]

12,247

1F G/0.710H

D /=9. /49=

n = ./0

De(and

#emand is the willingness of a customer to buy a particular product at a

given point of time. The success of one*s business lies in the demand of the

consumers to buy their product that is why demand is called as the basic

foundation of the mar$et study (almonn, 2007!.

5ith the two set of &uestionnaires designed and made for the study, the

proponents, were able to come up with the willingness and the level of

desirability of the target mar$et to avail the service to be provided by %ir ar$*s

Printing %ervices.

)a$or Cu&to(er of the Ser%ice

A mar$et is made up of all actual and potential buyers of a product and the

group of consumers constitutes to a target mar$et (Ioung J Pagoso, 200=!. The

business need not address all the needs of the mar$et. The needs of the maor

clients are the ones that would be satisfied by the business. They are those

groups of individuals that would be the target mar$et (edina, 2012!.


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The maor client of the service to be provided by %ir ar$*s Printing

%ervices were the students of +atangas %tate niversity ain ampus -. This

included the high school, college and graduate school students, from all year

levels and courses. Their need for greater access and cheaper printing services

were the needs that the proponents of the study wanted to the address.

Hi&torica- De(and

Kistorical demand is referred by most business when ma$ing decisions

about the future (8oldman, 2006!. -n computing for the historical demand of the

proposed service, the demand for the related services in the past few years

should be considered. This will discern the opportunity of the continuance of the

product.

Ta#-e 1*2Hi&torica- De(and

Year Hi&torica- De(and

2010 2,64,297

2011 /,229,794

2012 /,6/2,74201/ 4,060,922

2014 4,1,09Refer to Exhibit 3

Table 2.1 shows the number of pages that has been printed from year

2010 to 2014. The following figures were obtained by multiplying the population

per year from 2010'2014, by the percentage of the consuming population and

average annual consumption. As shown in the table, the annual demand for

printing service increases each year. The increase in historical demand indicates

the increasing need for printing service which may provide opportunity for the

proponents of the business. -t also shows the direct relationship between


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population and the historical demand that is when the other one increase, so as

the other.

,ro$ected De(and

Proected demand is the activity of estimating the &uantity of a product or

service that consumers will purchase. -t may be used in assessing future

capacity re&uirements, or in ma$ing decisions on whether to enter a new mar$et.

The proponents used the statistical straight line method to obtain proected

demand for printing from 2019'2021.

Ta#-e 1*1,ro$ected De(and

Year ,ro$ected De(and

2019 ,94/,74

201= 7,14/,=2

2016 7,44,0=7

2020 7,644,/49

2021 9,/44,70=Refer to Exhibit 4

Table 2.2 shows that the proected demand gradually increases from

,94/,74 in year 2017, to 9,/44,70= in year 2021 due to increasing population

of the students of the university. -t indicates that there will be an increasing

demand for the service to be provided by the proposed business as it continue to

operate in the net five years.

Supp-"

%upply is the amount of commodity offered in the mar$et at the given price

at a given time for meeting the demand of a certain place (8o, 2010!. -t must

satisfy the needs and wants of the customers. The information that was gathered

was based from the survey designed and conducted for this study.

Hi&torica- Supp-"


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Kistorical supply determines the past amount of product supply in the past

years. -t was obtained directly through the responses of the eisting printing

services providers near +atangas %tate niversity ain ampus - area li$e the

computer and printing shops such as Li'witty computer cafMN and LBust in PrintsN.

This is important to $now if the service has the potential in the mar$et. The

historical supply covers the years 2010'2014.

Ta#-e 1*.Hi&torica- Supp-"

Year Hi&torica- Supp-"

2010 =/6,000

2011 =91,000

2012 1,144,100

201/ 1,290,000

2014 1,/99,000Refer to Exhibit 5

Table 2./ proves that the historical supply increase in the last five (!

years. -t also shows the efforts made by the eisting businesses to address the

growing needs for printing.

,ro$ected Supp-"

-n order for the business to provide a relevant and reliable proection of

supply, it must sustain and meet the demand for the product. The proponents

used the straight line method in forecasting the supply. -t helped in determining

the mar$et gap for the succeeding years.

Ta#-e 1*3,ro$ected Supp-"

Year ,ro$ected Supp-"

2019 1,=/9,920


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201= 1,6=,220

2016 2,1/2,920

2020 2,2=0,220

2021 2,429,920Refer to Exhibit 6

Table 2.4 shows the proected supply of the proposed product for the year

2019 to 2021. This shoes an increasing trend for the supply of the service for the

net five (! years. The figures shown in table 2.2, the proected demand should

be compared with table 2.4 to compute for the mar$et gap of the proposed

service in the mar$et.

De(and and Supp-" Ana-"&i&

#emand and supply are economic factors that regulate the amount of a

product that is produced, as well as its price. The analysis is important to $now

the relationship between the two factors. As the supply eceeds demand, sellers

lower their prices to increase sales, in contrary, as demand eceed supply,

buyers tend to buy the product even at a high cost.

The data of the demand and supply analysis is important to show the

mar$et gap of a given product or service in the mar$et. -t can be derive by

subtracting the proected supply from proected demand. This holds the

possibility of the product or service to penetrate the mar$et.

Ta#-e 1*4)aret Gap

Year ,ro $ected De(and ,ro$ected Supp-" )aret Gap

2019 ,94/,74 1,=/9,920 /,60,=44

201= 7,14/,=2 1,6=,220 4,1=,70

2016 7,44,0=7 2,1/2,920 4,411,/77

2020 7,644,/49 2,2=0,220 4,774,129

2021 9,/44,70= 2,429,920 4,617,===Refer to Exhibit 7


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Table 2. presents demand and supply analysis. The table shows the

increasing trend of the mar$et gap for the proposed service. -n year 2019, the

computed mar$et gap is /,60,=44 which increase up to 4,617,=== by year 2021.

This shows a good sign for the business that there is a huge portion in the

mar$et that the eisting business can satisfy. This may enable proposed

business to easily penetrate the mar$et.

)aret Share

ar$et share is the share of the proposed business in the mar$et wherein

the percentage of the proected sales is ta$en into account in relation with

proected demand (Pagoso, 200=!.

-t also determines how much gap between demand and supply can be

penetrated by the business. -n this study, the mar$et share of the proposed

business is dependent on the capacity of the firm to fill'up the anticipated

demand for the printing services. #ividing annual sales volume with proected

demand arrives at mar$et share.

Ta#-e 1*5)aret Share

Year Sa-e& 6o-u(e )aret Gap )aret Share

2019 90,000 /,60,=44 16.20E

201= =07,20 4,1=,70 16./6E

2016 =77,916 4,411,/77 16.7E

2020 6/1,92/ 4,774,129 16.6=E

2021 1,001,702 4,617,=== 20./9E

Refer to Exhibit 9

Table 2.7 shows the mar$et share of the proposed business. The mar$et

share is seen to increase each year as the sales volume and proected demand

also increases. The sales volume is assumed to increase by 9. percent annually


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starting the second year of operation. The proected mar$et share is almost close

to the percentage of unsatisfied demand as shown in ;hibit =.

S7OT Ana-"&i&

%5)T analysis is a basic strategic planning method which helps the

company in identifying four $ey elements strengths, wea$nesses, opportunities

and threats which are involved in a proect or in a business venture. -t is

important in considering what are the internal or eternal issues affecting the firm

(8o, 2010!.

An important step in establishing a business is to conduct an analysis of

the strengths, wea$nesses, opportunities, and threats (%5)T! of the 4P*s,

namely, the product, price, people and promotion. -t would formulate appropriate

mar$eting strategies for $ey performance issues. %5)T analysis attempts to

identify one or more strategic relationship between its current strengths and

wea$nesses and its present or future opportunities and threats.

Stren!th

%trengths are the $ey factors that give the business an edge over

competitors. -t helps any company to boost its $ey results areas which comprise

of sales, mar$et share and profit. -t is an advantage of a firm relative to

competitors and needs of the mar$et (8o, 2010!. The business considers its

economical price, its accessibility to the target mar$et, the numerous ways to

print it offers, having the place of operation and office in one, its accessibility to

its suppliers and having less employees serves as its strengths as a business.


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Econo(ica- ,rice* The students, which are the target mar$et of the

proposed business use part of their daily allowances for availing printing service.

The low'cost of printing that is proposed to be offered by %ir ar$*s Printing

%ervices will enable them to save their money and allot it to other things.

Acce&&i#-e for the &tudent&* The students mostly consider the location

when deciding where to print. The proponents considered its location to be more

advantageous over its competitors. The availability of the printing center within

the campus helps them to save more of their time to become more productive.

Nu(erou& 8a"& to print* The proposed business will offer different ways

to print to provide a hassle'free service to the students. The availability of internet

connection within the campus will help the students in their studies, not only for

research purposes, it will also provide them an option to place their printing obs

online.

,-ace of operation and office he-d in one* The proposed business will

incur less cost having the place of operation and the office in one place.

Great acce&&i#i-it" to the &upp-ier&* The suppliers for the consumable

supplies for the service were very near. Cormosa ommercial and harleston

omputer ;press enter were located streets net where the university is.

'e&& e(p-o"ee&* There will be fewer employees since the partners can

be hands on to their business.


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7eane&&e&

5ea$nesses are negative factors which may hinder the attainment of the

firm*s $ey results areas. This includes the possible problems and difficulties that a

business might encounter. -t is important to determine wea$nesses in order to

ma$e necessary action to overcome it (8o, 2010!. #epreciation of the machine

and the dependability of operation to school days are considered as wea$nesses

of the proposed business.

Depreciation of the (achine* %ince the machine will be turned on the

whole day, the more li$ely it is to downgrade compared to other printing

machines.

Dependa#i-it" of operation to &choo- da"&* %ince the target mar$et of

the business where the students of the university, the business will not operate

during non'school days, semestral brea$s and other school calendar vacation

declared days.

Opportunitie&

)pportunities are positive situations or circumstances which will enhance

the company*s position in the industry. These are eternal factors centered on

analy"ing the competitors and the eternal environment that may positively affect

business operation (8o, 2010!. The continuous technology development,

increasing number of patrons and future increase in demand are considered as

opportunities to business.


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2

Continuou& techno-o!" de%e-op(ent* The proposed business relies on

the technology provided by other companies, such as ;pson. The stiff

competition in the industry pushed them to develop more $ind of printers and to

provide the lowest cost of printing ever possible.

Increa&e of de(and* The proponents of the study were loo$ing forward

for yearly increase of student'enrollees in the university, being $nown for &uality

and affordable education.

Future e+pan&ion* The business may epand the variety of printing

service it may offer in some future time.

Threat&

Threats are the negative eternal factors that affect the business which

may dampen its position in the industry. These serve as hindrances for the

success of the business (8o, 2010!. The eistence of same $ind of business and

having home printers as investments can threaten the proposed business.

E+i&tence of &a(e ind of #u&ine&&* Printing service is a growing

industry. ;ntrepreneurs mostly enter such $ind of business because of low

capital demand and a fast return of investment compared to other types of

business.

Ho(e printer& a& in%e&t(ent* 5hen the consumers choose to invest

into home printers, there would be a decrease in demand for the service.

I(p-e(entation of &enior hi!h &choo- pro!ra(* %tarting school year

2017, in accordance with the @'12 program curriculum, senior high school will be

implemented. There will be no incoming first year college students until the


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27

following school year. %aid implementation would li$ely to decrease incoming

enrollees.

)aretin! Strate!ie&

A mar$eting strategy allows an organi"ation to concentrate its limited

resources on the greatest opportunities to increase sales and its competitive

advantage. Proper implementation of strategies is re&uired to attract consumers

and ma$e them patroni"e the services offered. -t is choosing the best possible

course of action to accomplish the organi"ation*s long term obectives and gain

modest advantage. nder the mar$eting strategies are 4P*s which are product,

price, people and promotion.

There are factors needed to be considered which are the customers,

competition, and the company itself in order to convey an efficient and effective

mar$eting strategy. The name of the business is important for consumer*s

ac$nowledgement of product. The price also determines the competitiveness of

the business. The consumers mostly prefer lower prices in choosing a service or

product. There should also be an appropriate sales promotion plan and channels

of distribution to the product and to the mar$et to achieve the set obectives.


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29

Ser%ice

%ervice is defined as anything offered to the mar$et or duty re&uired or

performed to satisfy others (Ioung, et al., 200=!. The proponents proposed to

have a printing center within the university premises.

Feature& of the Ser%ice

The proposed business will offer printing service to the students of

+atangas %tate niversity ain ampus -. -t will provide colored and blac$'and'

white printing. Paper si"es that will be made available are letter si"e (=N11N! and

foolscap (=N1/N!. These are the paper si"es that are mostly used by the

students. -t offers the same printing service that printing shops and computer

cafes provide to their customers. Aside from that, this also allows the student to

send their documents to be printed through the internet to and pic$ up the printed

document on the store. The &uality of print outs can be assured with the ;pson

printers that the business are going to use.

Ad%anta!e& and Benefit& of the Ser%ice

Oot all students have printers at home, yet printing service happens to be

one of their evolving needs nowadays. )btaining cheap and convenient printing

service was mostly hard to attain two at a time. The said service will

accommodate the demand for affordable and &uality printing of the students in

the university and will be established under the name %ir ar$*s Printing

%ervices.

Brand Na(e


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2=

A brand is essentially a name, term, design, symbol, or any other feature

that identifies a seller*s product or service distinctive to others (Ioung, et al.,

200=!.

The brand*s name provides a great help for the promotional aspect of the

business. The name of an entity is ust as important as the service. The

proponents of the study agreed to have the entity*s name to be L%ir ar$*s

Printing %ervicesN which simple and easy to recall and associated with the place

it is operating, the school. -t is a name that may give impact to the target mar$et.

L%ir ar$N came from the name of one of the partners. Through this, people will

see that li$e the teachers in this institution, the business wants to attend the

needs of the students for learning. The proponents also epect the business to

epand in the future under the same name, providing other related services to

the same target mar$et.

Fi!ure 1*2Brand 'o!o

Cigure 2.1 shows the brand logo to be used by the company. The %ir

ar$*s Printing %ervice ogo shows how it cares to its customers in as smart,


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26

advance and &uic$ response procedures using state of the art e&uipment. The

proponents come up with the idea of having the color white as the brand logo*s

bac$ground because it signifies purity and transparency to all transactions that

cater to the customers. The man wearing eye glasses in the left side of the logo

signifies intelligence who can lead others in a smart living having ar$*s Printing

%ervice.

,ricin!

Pricing refers to the ependitures that customers are willing to pay for a

product (Peng, 2010!.

)ne of the significant aspects of competitiveness is pricing that is why the

proponents set a reasonable price that would provide a consumer of the service

get a good for value of money. The proponents should understand how pricing

may drive the target mar$et to patroni"e the service.

The proponents learned that from the past years, the trend for the price is

decreasing and that the current price is the lowest price from the past five years.

The price for blac$'and'white print is one peso per page to almost throughout the

computer shops and printing shops near the university, while the price for colored

print varies from one shop to another. To be competitive with the eisting

businesses rendering the same $ind of service, the proponents decided to have

its target price same for blac$'and'white prints and a lower price for colored

prints. -t will be one peso per page for blac$ and white print and one peso for

colored print. The price can be made reasonable by considering lesser space

rental fees, less wor$ers, and having the target mar$et closer than your


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/0

competitors.

Ta#-e 1*0,rice Rate per ,a!e

B-ac Co-ored

Short 'on! Short 'on!,rice Rate per pa!e 2*99 2*99 2*49 2*49

Table 2.9 shows the price rate per page %ir ar$*s Printing %ervice will set

for its consumers.

,-ace

Place refers to placing products and services within the reach of the

consumers. A distribution channel is a medium by which goods and services are

made available to the consumers for use or consumption (Pagoso and Ioung,

200=!.

-nside the university, the proponents will rent a floor space under the

control and authori"ation of the niversity :8) or the :esource 8enerating

)ffice. The rent on space will include payments of utilities li$e electricity. The

business will be located at the ground floor of A+;-K +uilding, +atangas

%tate niversity ain ampus -.

#istribution means the eecuting of the service to designated people. The

service should be placed where it is tremendously needed by the client. -t would

result to a continuous inventory turnover that will maimi"e the profit of the

business. any channels are now used to render service. A channel map can be

drawn to visuali"e the flow of services from the business to its client.

hannel distribution as the method companies use to deliver products or

services to their target mar$et and channel as the means by which products or


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/1

services are distributed, but these definitions hide an important truth. The

distribution channels are not only a means to ship the goods or deliver the

services3 it may also provide the service provider with additional opportunities to

sell their products.

The proponents will use the direct sales method which allows the service

provider to contact the customers without any intermediaries and have complete

control over presentation of their offers and pricing. As interaction with the

customers, the service provider receives direct feedbac$ on what they are

proposing and they can adust their mar$eting accordingly.

The service to be offered will involve direct mar$eting channel where the

service can be readily available to the consumers.

Ser%ice ,ro%ider

Fi!ure 1*1Di&tri#ution Channe-

As illustrated in Cigure 2.1, the channel of distribution was from the

business directly to the consumers or clients. The business will have a direct

contact with the consumers which will allow them to understand their mar$et

more and ma$e much accurate adustments to serve their clients better. The

Con&u(er&: C-ient&


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/2

clients of the service will need to transact physically in the store to avail the

service. The manager and the wor$ers will attend personally to the clients of the

business within the specific business hours. The clients may opt to send e'mail

and pic$'up the ob'order when the transaction period is beyond the normal

business hours.

Sta--

The %ir ar$*s Printing %ervice stall will be placed at the ground floor of

A+;-K +uilding, +atangas %tate niversity ain ampus -. -t is the stall

where the operation be held. -n that stall, the firm*s name, brand name as well as

the promotional advertisements can be seen so that the customers can be able

to recogni"e the service that the proponents offer.


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//


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/4

,ro(otion

ar$eting promotion refers to communication designed and implemented

to persuade others to accept ideas, concepts or things3 to motivate customers

and consumers to ta$e action (Pic$ton, 2010!.

The proponents will use several $inds of promotional strategies to

introduce the business and to endorse the service it provides to the consumers.

The proponents decided to have at least eight tarpaulins with a si"e of 2/* ft.

along the gates of the university and corridors of different buildings, places which

are surely seen by students. The tarpaulin will contain information about L%ir

ar$*s Printing %ervicesN, the service it provides, the price rates and to where it

will be located.

%ocial media nowadays are the best way of promoting business. The

proponents will be using social media websites such as Caceboo$ to reach and

spread the information about it to the students.

Another way of promoting a business is through flyer distribution. Clyer

distribution is one of the oldest ways of advertising different businesses, but for

the proponents of the study, it is one of the best ways to show how good printing

services they can provide to the consumers. The well'printed flyers serve as

proof of cheap but &uality printing that may encourage possible consumers aside

from the information written there.


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/

Ta#-e 1*/,ro(otion )i+

7hat 7ho 7hen 7here Ho8 Bud!et

2* Internet)aretin!

Proponents 1 monthbefore

operation

Caceboo$ The servicewill be

introducedonline. Thesites willincludeservicesoffered withcorrespon'ding price,location, andcontactnumbers.

The use of social

mediasites,

especiallyCaceboo$,

can befree of use

throughmobile

phones.

1*Tarpau-in

Proponents / wee$sbeforeoperation

%electedarea intheuniversity

-t will beposted onplaces wherethere aremany peoplepassing by.

P 1,200.00

.* F-"er& Proponents 1 wee$before theoperation

Oeargates oftheuniversity

Clyers will begiven to thestudents whoare passingby.

P 20.00

Tota- , 2;349*99

Genera-i


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/7

Through the use of survey'&uestionnaires and interview method, the

proponents can determine the demand and supply, business si"e, nature and

growth. 5ith respect to the population of the university, /4 out of /=9 or around

=6 percent was willing to avail the service being proposed. The capability of the

proposed service will be determined by the strength and wea$nesses as well as

the opportunities and threats that the business may encounter during its

operations.

The proponents also determined the mar$eting strategies they will use for

the business operation. The proponents clearly established the 4P*s, the

product


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/9

re&uirements as well as the proect utilities, waste disposal management and

production system documentation (->igo, 2010!. An analysis of the technical

process will be needed in providing the service upon determination of the

demand and supply and other aspects of the mar$et study.

8enerally, this chapter would deal with the scientific procedures,

availability of sources, types of assets needed and manpower re&uirements

which are the re&uisites of the technical aspect of the study.


8enerally, this study aims to assess and determine the etent which the

%ir ar$*s Printing %ervices meets criteria of technical soundness. -t attempts to

meet the following specific obectives

1. To present the full description of the service3

2. To demonstrate the processes involved in the service flow3

/. To ascertain the resources re&uired for the normal course of the business

such as e&uipment, materials J labor and other re&uirements3 and

4. To select the optimum space for business operation.


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Ser%ice%ervice is a valuable action, deed, or effort performed to satisfy a need J

want or to fulfill a demand. -t is also an occupation or a function of serving to the

mar$et (!. -n this study, the proponents will offer printing services to its target

mar$et.De&cription of the Ser%ice

%ir ar$*s Printing %ervices is a printing center that belongs to a service

industry wherein the product is being performed rather produced. The service

output will ta$e the form printed document which come in two si"es, legal and

foolscap si"e.

The proposed proect is a service to be provided for the convenience of its

target mar$et, the students of +atangas %tate niversity ain ampus -, and for

their greater access towards cheaper yet &uality printing services.U&e& of the Ser%ice

Oowadays, the need for printing is becoming increasingly important.

Proects and other school re&uirements are mostly needed to be computeri"ed

rather than produced in writing handwriting. The demand will always be high but

there have always been scarce resources for filling this demand.The proponents understand the need of the students of +atangas %tate

niversity ain ampus -. The establishment of a printing center within the

university can provide convenience for the students, as well as help them to save

their allowances for other school epenses. The time that the students consume

falling in line waiting will be spent on more important matters.Ser%ice Operation F-o8chart

There must always be an order of things for business processes. This is

best illustrated through flowcharts. Clowchart is a means of visually presenting

the flow of data through an information processing system, the operations

performed within the system and the se&uence in which they are performed.


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The customer can place hiso#?Order For(

The wor$er attending the customer must confirm the details in the form.

Payment should be made by the customer before the document is printed, then

form should be mar$ed as paid. The customer has to wait until the documents

are all printed. Ke should present the form to the attending wor$er for the printed

documents to get his printed document.

The figure below illustrates the printing process.

Start


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Cill'up the Bob')rder Corm (1 min.!

Kand the Bob')rder Corm and device source over the person in'charge (/ secs.!

?erbal confirmation should be done by the attendee (1 min.!

a$e payment (10 secs.!

Printing of the document (/ secs. < page!

8et the printed document (/ secs.!

End

Fi!ure .*1Ser%ice Operation F-o8chart

@Direct ,-ace(ent of >o#?Order5hen the customers place ob'orders online, he


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beyond, given that it is still within the business hours. Payments should be made

first before the printed document is released.

Start

%end the document to the email address of the business, providing the same

details in the Bob')rder Corm. -nclude when to pic$'up

onfirmation message will be sent after the placement of ob'order

a$e payment (10 secs.!

:elease of the printed document

End

Fi!ure .*.Ser%ice Operation F-o8chart

@On-ine ,-ace(ent of >o# Order

Cu&to(er ,re?re!i&tration%ir ar$*s Printing %ervices will allow placement of ob'order online via e'

mail. The client should register first his


42/101

his registration. pon registration, the possible clients have to present their

recent registration form and -#. :egistration need only be made once, and

updated their status every specific period. Kigh school students have to update

their status every school year, while college and graduate school have to update

every semester they enrolled.E&ta#-i&h(ent 'ocation

-n putting up a business one of the factors to be considered is the location

or site. This could contribute to the success of the business. -t is ascertained by

the accessibility of the place.The proponents will occupy space in +atangas %tate niversity ain

ampus -. The location is advantageous to the business because it is near to the

students and near its suppliers. The suppliers of consumable such as Cormosa

and harleston omputer ;press enter are along the same street.


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Fi!ure .*3E&ta#-i&h(ent 'ocation

4/


44/101


45/101

4

Assets were used for the operating function of a company. )ne of the

necessary re&uirements to start up a business is purchasing the appropriate

machineries and e&uipment for effective operations. -n line with this, the lowest

purchase cost as possible is to be considered in ac&uiring such e&uipment. Table

/.1 shows the store e&uipment that needed in the business.

Ta#-e .*2Store Euip(ent

De&cription uantit" @unit Unit Co&t Tota- Co&t

omputer 1 Php 16,600.00 Php 16,600.00

ash +o 1 746.9 746.9

eiling Can 1 1,100.00 1,100.00

TOTA' ,hp 12;53*04(Sources: Abenson)

Co(puter* -t is an electronic machine used for storing, retrieving

information and performing calculations. -t is one of the primary needs in

providing the proposed service. -t is also needed by administrative officers for the

transactions re&uiring computers and for the proper $eeping of company

information.

Ca&h Bo+* This will serve as the daily storage of cash in the store.

Ce-in! Fan* -t is need for proper ventilation in the wor$ing area.

,rinter&

;ffective and efficient service operations rely on the &uality of

printers to be used. To $now what $ind of printer suits the business best,

the proponents of the study loo$ed after the specifications, durability and

cost'efficiency of the printers. They have chosen products from ;pson,

one of the leading printer manufacturers, which is also being patroni"ed by

other businesses in the industry. -n this study, two types of printers will be


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47

used, monochrome and color function printers. The printers that will be

used in the operation will have a continuous in$ tan$ system. Table /.2

shows the printers that will be used.

Ta#-e .*1,rinter&


Printers ' ;pson 100 2 7,66.00 1/,660.00

Printers ' ;pson /00 2 9,46.00 14,660.00

TOTA' ,hp 1/;/9*99 (Sources: Epson hi!")

Ep&on )299* ;pson 100 is a monochrome printer. -t has a

140m in$ capacity tan$, printing that can print as much as 7,000 pages at

the speed of /4ppm.

Ep&on '.99* -t is a color printer that has a tan$ with four separate

divisions for different in$ colors, magenta, cyan, yellow, and blac$. -n one

refill, it can print as much as 10,00 pages (composite yield! at the speed

of //ppm.

Furniture and Fi+ture&

These are tangible assets of the business used to conduct its daily

operations. Curniture J fiture will be used to have an organi"ed wor$ing place.

The following lists of furniture J fiture are to be purchased by the firm.

Ta#-e .*.Furniture Fi+ture&


Ciling abinet 2 Php 1,2/0.00 Php 2,470.005or$ing Table 2 =00.00 1,700.00

onobloc$ hair 4 40.00 1,720.00TOTA' ,hp 4;5/9*99

(Source: #!$%pin &enera! Enterprise' A!*in+ &en",erch"-orp" and ." &ain+as /urniture)

Fi-in! Ca#inet* -t is a piece of office furniture usually used to store


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49

paper documents in file folders. This also where other consumables li$e

in$ will be stored.

7orin! Ta#-e&* These will be used by the manager and personnel inside

the store with the dimension of /0N 40N.

)ono#-oc Chair* -t is a movable seat with bac$ intended for individual

use.

Store Supp-ie&

-t refers to supplies used for performance of the service. These are used

for data collection, grouping and storage of written documents. %upplies are one

of the important factors to consider being able to properly manage the business.

Ta#-e .*3Store Supp-ie&


+allpen 1 do"en Php .00 Php 77.00

+ondpaper(%hort!

1 ream =.00 =.00

+ondpaper(ong! 1 ream 6.00 6.00

alculator 1 piece 2=6.00 2=6.00;nvelope 10 pices 1.0 11.0

Castener 1 bo 2.00 2.00

Colder 10 pieces 1.00 10.00

Bournal +oo$ 2 pieces 2.00 0.00

Paper lips 2 boes 20.00 40.00

Pencil 1 bo 4.00 4.00

Puncher 1 pieces 90.00 90.00

:ecord +oo$ 1 pieces 0.00 0.00

%cissors 2 pieces /.00 90.00

%harpener / pieces /.00 10.00

%tamp Pad 2 pieces /.00 90.005ooden %tamp 1 piece 100.00 100.00

%tapler 1 piece 22.9 22.9

%taple 5ire 1 bo 2.00 2.00

Tape / pieces 20.00 70.00

5all loc$ 1 piece 40.00 40.00

TOTA' ,hp 2;30/*14(Sources: /or%osa' Exce! 0o%s' Ne* 1ua!it$ -o%%ercia!)


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4=

Table /./ shows the store supplies that are needed in the business for a

whole year.

Ser%ice Supp-ie&

-n order to come up with a good product that the service will provide, it is

necessary to lay hard on the proper materials needed. The outcome of service

process in terms of its &uality greatly depends upon the materials that serve as

the input. Table /. shows the estimated price of materials to be used in service

for annual operation.

Ta#-e .*4Ser%ice Supp-ie&


+ond Paper(%hort! 1,200 reams Php 120.00 Php 144,000.00

+ond Paper (ong! /00 reams 142.00 42,700.00

-n$ (T9941! =1.= bottles 62.00 9,470./

-n$ (T774! 1/.91 bottles 26.00 40,0/.91

%taple wire / boes 2.00 9.00

%tapler 1 piece 2=0.00 2=0.00

TOTA' @E+c* of 6AT ,hp 109; 934*04(Sources: /or%osa' Epson hi!ippines)

Bond paper @&hort* The si"e of a short bond paper is =.N 11N. This

si"e of paper is also called letter si"e. The &uality of paper is substance 20 and

90 gsm that is good for printing purposes. The brand of paper to be used is

anon )ffice Paper.

Bond paper @-on!* -t is also called foolscap si"e. -t has a width and

length of =.N 1/N. -t has the same &uality as a short bond paper.

In #ott-e& @T0032* -n$ tan$ system for printers used in$ bottles. This

blac$ in$ bottle is for ;pson 100 printers.


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46

In #ott-e& @T553* -t has four different colors, blac$, yellow, magenta, and

cyan, that is used and compatible with ;pson /00.

)aintenance Supp-ie&

This refers to the supplies used to maintain the cleanliness of the %ir

ar$*s Printing %ervices and proper sanitation as well as for the maintenance of

the documents.

Ta#-e .*4)aintenance Supp-ie&


+room 1 piece Php 7.00 Php 7.00

#ust Pan 1 piece 40.00 40.00Cire ;tinguisher 1 piece 1,=70.00 1,=70.00

:ags 4 pieces 17.0 77.00

Trash an 2 pieces 100.00 100.00

TOTA' ,hp 1;2.2*99(Sources: /or%osa'&ENAS-#)

Table /. shows the maintenance supplies to be used for annual

operation.

'ea&eho-d I(pro%e(ent&

A legal document outlining the terms under which one party agrees to rent

property from another party. -t is a contractual arrangement calling for the lessee

to pay the lessor for use of an asset. easehold improvements are alterations

and modifications on he leased property made by the lessee. egally, leasehold

improvements revert to lessor upon termination of the lease contract. (%ee

Appendices!

The proponents decided to lease space inside the university at Php

17,000.00 monthly with re&uired repairs and partitions of the place to have a


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0

more convenient wor$ing place. The lessee and lessor agreed that the lessee is

the one responsible for the renovation according to the intended layout carry on

the operation. This is intended upon the ac&uisition of the dividers for the office

area.

The table below shows the leasehold improvements that will be done by

the company.

Ta#-e .*5'ea&eho-d I(pro%e(ent&

De&cription Tota- Co&t @,hp

abor 4,=00.00

Paint 2,=1=.0Plywood 4,12=.00

umber 1,60=.00

ommon nails 200.00

Paint rollers 191.00

5irings 120.00

;lectrical tape 1=.00

ighting 240.00

)ther materials 400.00

TOTA' 23;/9.*49

The proponents will hire labor wor$ers to fi the leasehold improvements

needed for the rented space. The construction is estimated to be for three days.

The salaries of the two laborers are estimated to be Php 4,=00. The improvement

includes the construction of a customi"ed shelf suited for the printers. -t is also

epected that some materials may be incurred but not listed above in particular

so Php 400.00 was allotted for them.

Uti-itie&

)ne of the indispensable ependitures of a firm is the subscription for

services that could provide for the eistence of the business the payments for

such services are to be considered for the accurate budgeting and maintenance


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1

of these utilities and the firm will set reasonable measures to ac&uire the most

possible minimal amount.

The suppliers of utilities such as electricity, water, and telephone will be

measured to determine how much will be spent and how important they are for

the operations of the %ir ar$*s Printing %ervices. Cor the proposed business,

due to the fact that the proponents are renting a space for their business, the

supplies of the above mentioned utilities are already available in the chosen

location.

E-ectricit"* This is a main utility to be used in the business operation. The

electricity is supplied by ;:A). The electricity epenses will form part of the

rent to be paid in the :8) or :esource 8enerating )ffice amounting to

P4,=00.00 monthly.

Te-eco((unication* The partnership will avail of telephone and internet

services from P#T. The firm allocated Php 660.00 for monthly

telecommunication epense.

7a&te Di&po&a-

Amount of wastes will be minimal because possible garbage would only

arise from the used papers from business transactions. These papers can be

properly recycled. Trash bins will be provided to establish the cleanliness of the

whole area. There will be a trash bin for biodegradable wastes and one for non'

biodegradable wastes. Proper segregation of wastes will be imposed among

employees.


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2

#isposal of waste also pertains to proper filing of documents especially if

these are bul$ed up due to different transactions. There will be an appropriate

place arranged for such files and documents.

Direct 'a#or Reuire(ent&

#irect labor is production or services labor that is assigned to a specific

product, cost center, or wor$ order. 5hen a business provides services, direct

labor is considered to be the labor of those people who provide services directly

to customers. #irect labor is considered to be a direct cost, which means that it

varies directly with revenue or some other measure of activity.

The employees are selected to attain the company*s goals and obectives.

The business will employ people who are competitive enough to have an

advantage. The company needs two (2! employees for the operation of the

printing center.Genera-i


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omputer ;press enter which is also advantageous for the business. it will be

properly located near the niversity ibrary, in front of T;+uilding.The resources needed by the proposed business are divided among store

supplies, store e&uipment, printers, furniture and fiture, service supplies and

maintenance supplies. There would be two types of printers to be used

monochrome and colored printer. The business will employ two employees in the

first year of operation. The leasehold improvements that are needed before

occupying the leased space are also identified. Along with this, the rent and

utilities epenses were also able to discuss.

Chapter I6)ANAGE)ENT STUDY

anagement is considered a fundamental part of a business

establishment. -t can be defined as a distinct process of planning, organi"ing,

staffing, directing and controlling, performed to determine and accomplish stated


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obectives by the use of human being and other business resources. -n this

chapter, management study will discuss the overall implementation plan for the

business (->igo, 2010!.

The form of ownership to be adopted and the initial contributed capital will

be discussed in this chapter, along with the organi"ational structure and the

manpower needed for the business. This will also involve discussion about the

policies and legal re&uirements concerning business.


The general obective is to discuss a comprehensive management system

to be used by the establishment to be able to achieve its goal. The following

serves as the specific obectives

1. To determine the appropriate form of business organi"ation and

organi"ational structure to be adopted32. To determine initial capital to be contributed for the proposed business3/. To determine the labor re&uirement and set the &ualifications and rightful

compensations for the employees3 and4. To discuss the organi"ational policies and legal re&uirements that the

business must comply with*

For( of Bu&ine&& O8ner&hip

The form of business ownership is one of the first and most delicate

matter considered in business formation. The proponents of the printing services

agreed to pursue the proposed business in the form of partnership. The partners

namely, aria Antonette :. Arguelles and ar$ Anthony %. ;lcarte, decided to

operate under the business name, %ir ar$*s Printing %ervices.


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The proposed business will be in the form of general partnership. nder

the Article 1979 of the ivil ode of the Philippines, by its contract, two or more

persons bind themselves to contribute money, property, or industry to a common

fund with the intention of dividing the profit among themselves (+allada, 2011!.

The proponents of this study have agreed to be general partners because it is

easy to establish and is less epensive compared to other forms of business

operations. 5ith more than one owner, the ability to raise funds may increase.

;ach partner will contribute his


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)an

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r

7or

er

2

7o

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payments for ac&uisitions, e&uipments, fees and other operating epenses. -t is

epected to cover the initial cost of the business. The partners also agreed, as

stated in the articles of partnership, that part of their income should be invested

to the business and will serve as part of their capital contribution.

Or!ani


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manager and the wor$ers who ma$e up the organi"ation. The manager on top of

the chart is given complete authority and responsibility over the administration of

the business and the wor$ers below would follow the tas$s assigned to them

responsibly. The manager, who is one of the partners, will be responsible in

managing the business and facilitate day to day transaction. The boo$$eeper, the

other partner, records them in the company boo$ throughout its operation.

)anpo8er Reuire(ent&

anpower is the human asset of the firm primarily the s$ills and epertise

the used in the venture (->igo, 2010!. -n order to have an effective operation in an

organi"ation, the vital components, which are the people, should be present. A

business needs human resource in order to accomplish specified wor$ loads of

organi"ations. Personnel of various &ualities and &uantities must be recruited

and made available at appropriate times.

The proponents decided that its manpower will be composed of the

following two wor$ers, a manager and a boo$$eeper. %ir ar$*s Printing

%ervices would have one manager, aria Antonette :. Arguelles, one of the

partners on the proposed business. The manager would also be responsible for

the decision'ma$ing process and the actions to be ta$en. The boo$$eeper, be

the other partner, ar$ Anthony %. ;lcarte, is in' charge of all money or financial

transactions and in compiling business reports. The boo$$eeper will do the

business records wee$ly. To meet the demand of the firm, two wor$ers would be

hired and they would have to do the wor$ allocated and assigned to them. +elow

are the definite criteria of the officers and wor$ers.


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>o# Specification

Bob specification is derived from ob analysis. -t gives the specific

&ualifications re&uired for the position, such as the following amount and type of

eperience needed to perform the ob, special training, s$ill and physical

demands, special abilities and aptitudes, age, physical &ualifications and other

re&uirements (->igo, 2010!.

)ana!er

ust be a bona fide partner in the business

ust be a graduate of +achelor of %cience in Accountancy or other

related business courses ust be at least 21 years old

Kas $nowledge and s$ills in managing business operations

ust be good in numerical s$ills for financial management

ust have a good communication s$ills, both written and oral

ust be physically and mentally fit for the ob

ust be an effective decision ma$er

Booeeper ust be a bona fide partner in the business

ust be a graduate of +achelor of %cience in Accountancy or other

related business courses ust have a good communication s$ills, both written and oral

ust be capable of preparing reliable financial reports


7orer 2

ale, at least high school graduate

ust be at least 21 years old

Preferably living near +at%tate ain ampus -


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6

5ith or without eperience but willing to learn and be trained

ust be of good moral character


ust be able to do wor$ fast and proper 7orer 1 ale or Cemale, at least high school graduate

ust be at least 21 years old

Preferably living near +at%tate ain ampus -

5ith or without eperience but willing to learn and be trained

ust be of good moral character


ust be able to do wor$ fast and proper

>o# De&cription

Bob #escription defines the duties and responsibilities of a particular

position. A description of the duties and responsibilities attached to the ob

enables the employment officer to determine the special &ualifications which an

individual must possess in order to do the ob successfully (->igo, 2010!. -t

describes what the ob covers, why it must be done, how it will be done, and the

relationship of the ob with other obs in the organi"ation.

)ana!er

anages the business Q planning, organi"ing, leading and controlling

the activities related to the service ;ercises direct control and supervision on the subordinate

Oegotiates with suppliers and other clients

onitoring and supervising of service process

Kandles and decides all the financial matters concerning the business


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onitors the business performance toward the achievement of its

primary obective that is to maimi"e the profit #etermines the firm*s growth, solvency and stability

Prepares and maintains the list of all transactions and financial

statements of the business

Booeeper :esponsible for proper classification of the business*s account.

:ecords business transaction and $eeps all financial records of the

business Prepares a periodic report of the operation

onitors the recording of all the financial matter of the business

Prepares financial statements for internal and eternal users

:esponsible for specific accounting wor$s Q acts as the disbursing

officer, prepare the financial statement of the business, handles ta

and other government regulations7orer& 2 and 1 -n'charge of providing the printing obs to the clients

:esponsible for maintaining the cleanliness of the wor$place

onitor the stoc$ level of the supplies

ust use the e&uipments properly

ust avoid wastage of supplies

Co(pen&ation

ompensation is something such as money, given or received as payment

or reparation as for service or loss. -t includes emoluments, such as wages and

salaries, and benefits and plays a maor role in attracting and retaining valued

employees in general, and particularly during labor shortage (#ubrin, 2006!. -t is

essential for the firm to provide ust compensation for employees as it is

considered to be one of their motivators to wor$ efficiently and effectively.


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ompensation also includes payments such as bonuses, profit'sharing, overtime

pay, recognition rewards, chec$s and commissions (Kealthfield, 2014!.

Ta#-e 3*1Co(pen&ation Schedu-e

,o&ition Nu(#er of E(p-o"ee&

Rate )onth-" Annua--"

anager 1 P 10,00.00


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72

PhilKealth contributions. They will also be recompensed with other benefits as

thirteenth month pay and bonuses.

Or!aniigo, 2010!. -t is essential for the accomplishment of

the organi"ation and are being rest assured. These are implemented to direct

and limit the organi"ation*s actions in pursuit of long'term goals and must be

followed accordingly by all employees and wor$ers. There are different policies to

be implemented in different aspects of business.

,er&onne- ,o-icie&

1. ;mployees must be punctual. They need to be on time of their respective

shift.2. %chedule of shifting should be furnished for every wee$.3. pdated daily time record should be maintained properly by the

employees and chec$ed by the manager.4. ;mployees should send an advance notification if he


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1* -n case of online placement of ob'order, reasonable time of pic$'up

should be observed. The client should register first his


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h.! The manner of $eeping the boo$ of accounts3

i.! The provisions or arbitration disputes.

II* Re!i&tration for B)BE

The registration is for the business to be eempted of the minimum wage

law.

III* Baran!a" C-earance App-ication

The proposed business must secure +arangay learance where the

business is to be located because the business is considered legitimate.

I6* )a"or& ,er(it App-ication

This was done through the ity ayor*s Permit )ffice. The re&uirements

should be complied where as follows

a.! ocation


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2.! ity ;ngineer*s )ffice

/.! ity Treasurer*s )ffice

4.! ity Kealth )ffice

.! ity Cire )ffice

6I* ,a"(ent of a-- -icen&e&; fee& and ta+e& at the Trea&urer& Office=

1.! egal fees

2.! ;nvironmental protection fee

/.! Cire -nspection Cee

4.! %anitary Cee

.! edical ertificate fee

7.! Transportation fee

6II* Re!i&tration to Bureau of Interna- Re%enue

:egistration of the +ureau of -nternal :evenue is the last part of the

registration process. This was done for the systematic payment of ta, for

registering the boo$ of accounts and business forms to be used by the

partnership.

Ta#-e 3*.Fee& and 'icen&e&

,articu-ar& A(ount

+-: :egistration Php 00.00

%; :egistration 1,000.00

++; :egistration 1,000.00


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77

ayor*s Permit 00.00

+usiness Ta /00.00

Roning Cee 200.00

Cire -nspection Cee /00.00

%anitary Permit 12.00

%anitary -nspection Cee 12.00-nspection and onitoring Cee 200.00

;nvironmental Protection Cee =00.00

learance Cee (;O:)! 10.00TOTA' ,hp 4;199*99

Table 4./ shows the fees and licenses to be paid once a year.

Genera-i


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compensations for each of them were also determined. The wor$ers will also

receive fringe benefits and a 1/ th month pay.

)rgani"ational policies were also established towards the employees and

must be followed accordingly. These are implemented to direct and limit the

organi"ation*s actions in pursuit of the goals of the business. The legal

re&uirements are needed to be complied before the actual operation for the

business to assure its legality as a business entity.


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Chapter 6FINANCIA' STUDY

Cinancial study is the most critical aspects to consider in establishing a

business. This includes the determination of the financing re&uirements, sources

of financing and cost of capital. -t covers the presentation of the epected results

of operations, their effects on the financial resources of the company, and

analysis thereof regarding profitability, li&uidity and stability (eorada, 2007!.

This study covers all monetary information of the business. -t includes the

necessary information on the total proected cost, initial capital re&uirements,

financial assumptions, sources of financing and financial statement. Cinancial


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ratios are computed to eplain the performance of the firm within a definite

period.


The general obective is to determine the epected financial performance

and evaluate the financial viability and capability of the %ir ar$*s Printing

%ervices. -t attempts to meet the following obectives

1. To present detailed figures of the total proected costs for the proposed

business32. To enumerate the financial assumptions used in providing the

proected financial statement3/. To provide the financial condition and performance of the business

through the use of supporting notes and financial statement3 and4. To comprehensively ma$e an evaluation of the financial statement in

terms of li&uidity, profitability and stability of the business.

Tota- ,ro$ect Co&t

The total proect cost shows the preliminary cost that the business will

incur upon starting up. -t should cover the cost of ac&uisition of fied assets to be

used in operating the business and epenses that are epected to be incurred for

the first two months. -t includes the cash re&uired to purchase the fied assets,

wor$ing capital for a month operation and pre'operating epenses. The balance

between the cash re&uired and the total proect re&uirement will form part of the

cash contingencies.


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Ta#-e 4*2Sir )ar& ,rintin! Ser%ice&

Tota- ,ro$ect co&t

Fi+ed A&&et Reuire(ent

%tore ;&uipment 21,746.9

Printers 2=,6=0.00

Curniture and Citures ,7=0.00 easehold -mprovement 14,=0/.0

Su#tota- 02;22.*14

7orin! Capita- for One )onth

#irect aterials 70,77=.40

#irect abor 10,700.00

)verhead

aintenance ;pense Q %tore 1,461.90

:ent ;pense Q %tore 6,40=.00

tilities ;pense Q %tore 4,0/.00

%%% ontribution Q 5or$ers 2/=.20

PhilKealth ontribution ' 5or$ers 200.00

Su#?tota- 24;.9*9

:ent ;pense Q )ffice 4,0/2.00

tilities ;pense Q )ffice 1,9/9.00


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aintenance ;pense Q )ffice 70.10

%tore %upplies 1,49=.2

Su#?tota- 0;/41*.4

Pre')perating ;penses

:ent deposit 1=,240.00

Promotional Activities 1,40.00

egal Cees and icenses ,200.00

Su#?tota- 13;/9*99

Ca&h Reuire(ent 29;423*9

Ca&h for Contin!encie& ;3/4*29

TOTA' ,RO>ECT REUIRE)ENT 199;999*99

Table .1 shows the total proect cost of %ir ar$*s Printing %ervices for

the period of two months.

Initia- Capita- Reuire(ent&

%ir ar$*s Printing %ervices re&uires sufficient capital to start the operation

of the business. The capital re&uirement of the firm for one month of operation

considering all aspects is Php 200,000.00. The initial capital shall be used on

ac&uiring assets needed to start the operation, pre'operating epenses, and the

epenses that will be incurred in providing the service during the first month of

operation.

Source& of Financin!

Cinancing is an activity which is considered with the ac&uisition and

conservation o

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