CHAPTER 1

Theoretical frame work

The review of the literature for this study focuses on the business management techniques

that can help increase the profitability of a business. It is anchored with the point of view and

theory of a well known authority which is dosely relevant to the researcher’s study.

Michael Porter’s “Generic strategies” a theory in his 1985 book ‘Competitive Advantage:

Creatory and sustaining superior performance:

This theory states that you’ll be able to identify the strategy that you need to lead your

organization to success, Michael Porter identifies three strategies for achieving competitive edge.

These are cost leadership strategy - differentiation strategy - and focus strategy.

The Cost Leadership Strategy

Porter's generic strategies are ways of gaining competitive advantage – in other words,

developing the "edge" that gets you the sale and takes it away from your competitors. There are

two main ways of achieving this within a Cost Leadership strategy:

 Increasing profits by reducing costs, while charging industry-average prices.

 Increasing market share by charging lower prices, while still making a reasonable profit

on each sale because you've reduced costs.

The Differentiation Strategy

Differentiation involves making your products or services different from and more attractive than

those of your competitors. How you do this depends on the exact nature of your industry and of
the products and services themselves, but will typically involve features, functionality,

durability, support, and also brand image that your customers value.

To make a success of a Differentiation strategy, organizations need:

 Good research, development and innovation.

 The ability to deliver high-quality products or services.

 Effective sales and marketing, so that the market understands the benefits offered by the

differentiated offerings.

Large organizations pursuing a differentiation strategy need to stay agile with their new product

development processes. Otherwise, they risk attack on several fronts by competitors pursuing

Focus Differentiation strategies in different market segments.

The Focus Strategy

Companies that use Focus strategies concentrate on particular niche markets and, by

understanding the dynamics of that market and the unique needs of customers within it, develop

uniquely low-cost or well-specified products for the market. Because they serve customers in

their market uniquely well, they tend to build strong brand loyalty amongst their customers. This

makes their particular market segment less attractive to competitors.

As with broad market strategies, it is still essential to decide whether you will pursue Cost

Leadership or Differentiation once you have selected a Focus strategy as your main approach:

Focus is not normally enough on its own.

Daniel Dick’s in his “Theories in sales promotion”. Sales promotions can be a great way to

increase short term revenue.

Sales Promotion Theory is the study of increasing short-term sales revenue. This study can be

conducted readily and effectively as the results can be measured quickly and, because of the

narrow focus of the promotion, other factors can be tightly controlled for. Sales promotions are a

source of some debate, as some argue that increasing short-term sales does not lead to long-term

profitability. Others argue that the benefits of creating more income for the company in the short

term allows that company to more rapidly grow to gain a larger market share. While promotions

come in many different forms, most fall into three categories: Push, Pull, and Combination.

Push Promotions

Using the Push Theory, you can increase sales by creating incentives to wholesalers or retailers

to sell more of your product. In this method you would offer discounts to wholesalers or retailers

who buy your product in bulk. This leaves them with more of your merchandise on hand and

drives them to sell more of your product. Giving them the discount “pushes” them to buy more

of your product at a lower price to increase the amount of money they make. In turn they must

“push” your products to customers because they will make a better return on them than on

similar products supplied to them by your competitors.

Pull Theory

The Pull Theory is about trying to market directly to customers to increase their demand for your

product. Advertising and tie-ins with other products or services is the key to this strategy. The

theory goes that if you increase the demand for your product by consumers, they will in turn

demand the product from retailers, retailers will demand more of your product from wholesalers

and wholesalers will demand more products from you. This is a way to increase your sales
without decreasing the sale value of your merchandise. Most of the costs are in advertising, so

using a tie-in with a related product or service can disperse this cost across both companies.

Combination Theory

This theory requires both of the above theories working together. The "push" is used to get more

product into the hands of retailers and wholesalers while advertising and product tie-ins with

other products are used as a "pull" to get more people to want to buy the product. Grocery stores

often use this tactic. They fill stores with products they have a high profit margin on (the push)

and run commercials that advertise the store ("A great place to shop" or "Your hometown

grocery") rather than a specific product (the pull).

Conceptual Framework

BUSINESS MANAGEMENT
TECHNIQUES

Online Marketing
Flyers
Make Jingle
Provide sales or promo
Reduce price of the product
Keeping good quality of the food Small Food Business’
Good service Profitability
Catchy business name
Game twist
Begging customer
Sales talk
 CHAPTER III METHODOLOGY

This chapter provide an outline of the Research Methodology used to answer the research
questions the Research Design, Respondents and Locale of the Study, Source of data , Data
Collection procedure and Treatment of the data.

Research Design

This study used a descriptive and quantitative study used to identify the business management
techniques that the small food vendors used to increase their profitability and also seeks about
effectiveness of such techniques. It is a distinctive research design of systematic data collection,
Presentation and analysis. Descriptive research is a purposive process of data gathering,
analyzing, classifying and tabulating data about prevailing conditions, practices, beliefs,
processes, trends and then adequate and accurate interpretation about such data. The copies of
questionnaire were issued to the respondents to gather various data about Business Management
Techniques.

Location of the Study

The survey was conducted at Munoz Market, Roosevelt Avenue, Project 7, Quezon City. The
researchers chose this location due to tons of vendors that are visible in every corner and street in
the area. An estimated 100 vendors were in the area at the time of the study. Also, Buyers of
food products were probably usual in the place which makes the answer of the respondents will
be more reliable.

Respondent of the Study

The proposed study is conducted for the respondents from thirty (30) vendors or business owners
in Munoz Market at Roosevelt Avenue, Quezon City. The researcher chose aged twenty (20) and
above respondents because they have higher knowledge on how to handle a business.
Table 1. Shows the respondents’ gender

Profile Frequency Percentage

Male 16 46.67%

Female 14 13.33%
Table 2. Shows the age of the respondents
Profile Frequency Percentage
21-25 5 16.67%
26-30 1 3.33%
31-35 3 10%
36-40 5 16.67%
41-45 10 33.33%
46-50 3 10%
51-55 0 0%
56-60 1 3.33%
61-65 2 6.67%

Source of Data
The material and instrument that the researcher used to gather data is the checklist survey
questionnaire. The survey questionnaire consist of ten (10) questions, each questions were
followed by its corresponding choices that lets the respondents easily put a check on their
answers.
Data Collection Procedure
The researchers personally and collaboratively formulate the questions and in gathering data.
After the professor approved the questionnaires, the survey questionnaires were distributed to the
thirty (30) respondents. The researcher asks first the respondents’ permission before conducting
a survey. The researchers explained each questions to the respondents for them to understand the
question clearly. The instruments were retrieved after they finish answering. After the
questionnaire shall have been retrieved, the data will be encoded.
Treatment of the Data
To interpret the data effectively the researchers employed the following statistical treatment. The
first one is for the computation of percentage. This type was used and is given by the formula.
P=f/n x 100
Where:
P means percentage
F means frequency
N means no. of respondents
 CHAPTER IV
Statistical Data
Information of the respondents’ profile

GENDER
GENDER FREQUENCY PERCENTAGE RANKING
Female 14 46.67% 2
Male 16 53.33% 1

AGE
PROFILE FREQUENCY PERCENTAGE RANKING
21-25 5 16.67% 2.5
26-30 1 3.33% 5.5
31-35 3 10% 3
36-40 5 16.67% 2.5
41-45 10 33.33% 1
46-50 3 10% 3
51-55 0 0% 6
56-60 1 3.33% 5.5
61-65 2 6.67% 4

Questions
QUESTION NO. 1

1.) Do you have any Frequency Percentage Ranking

strategy or technique
you use on selling
your product?
. 30 100% 1
No 0 0% 2

In Question no. 1 “Do you have any strategy or technique you use on selling your product?”
Pertaining to the interpretation of data from the respondents’ answers in
the table above, 30 out of 30 or 100% of the respondents state that they use strategies or
techniques on selling their product while 0 out of 30 or 0 % states that they don’t use any
strategy on selling product.

QUESTION NO. 2

2.) What specific Frequency Percentage Ranking

strategy do you use?
(You can check as
much you can).
A. Online Marketing 4 13.33% 8.5
B. Give Flyers 6 20% 7
C. Make Jingle 4 13.33% 8.5
D. Provide Sales or 15 50% 4
Promo
E. Reduce Price of the 12 40% 5
Product
F. Keeping good 26 86% 3
quality of the food
G. Good Service 27 90% 2
H. Catchy Business 2 6% 9
Name
I. Game Twist 0 0% 10
J. Begging Costumer 8 26.67% 6
K. Sales Talk 28 93% 1

In Question no. 2 “What specific strategy do you use?”

Pertaining to the interpretation of data from the respondents’ answers in
the table above, 28 out of 30 or 93% of the respondents answered that they use Sales talk as their
strategy or technique on selling their product, 27 out of 30 respondents said that they conduct
Good service as a strategy, 26 out of 30 or 86% of the respondents answered that keeping good
quality of the food is their technique, while 15 out of 30 or 50% of the respondents provide
promo or sales for their product, 12 out of 30 or 40 % of the respondents said that they reduce
the price of the product, 8 out of 30 respondents uses Costumer begging as a strategy, 4 out of 30
or 13.33% of the respondents said that they make jingle as a technique, also 4 out of 30 or
23.33% of the respondents uses online marketing as a strategy, lastly, 0 out of 30 or 0% of the
respondents uses game twists as a technique on selling their food product.

QUESTION NO. 3
3.) How much time Frequency Percentage Rank
you spend in your
business?
12 hours 23 76.67% 1
8:00am-5:00pm 6 20% 2
24 hours 1 3.33% 3

In Question no. 3 “How much time you spend in your business?”

Pertaining to the interpretation of data from the respondents’ answers in
the table above, 23 out of 30 or 76.67% of the respondents spends 12 hours on selling their
products, 6 out of 30 or 20% of the respondents spends 8:00 am to 5:00 pm while 1 out of 30 or
3.33% of the respondents spends 24 hours for their business.

QUESTION NO. 4

4.) How many days Frequency Percentage Rank

in a week you open
your business?
Everyday 27 90% 1
Every other day 1 3.33% 3
Weekends 1 3.33% 3
Weekdays 1 3.33% 3

In Question no. 4 “How many days in a week you open your business?”
Pertaining to the interpretation of data from the respondents’ answers in
the table above, 27 out of 30 or 90% of the respondents said that they open their business
everyday, 1 out of 30 or 3.33% of the respondents said that they are open every other day, also, 1
out of 30 or 3.33% of the respondents said that they are open only on weekends and lastly, 1 out
of 30 or 3.33% of the respondents said that they are open on weekdays.

QUESTION NO. 5

5.)Does your sales Frequency Percentage Rank

enough for your
daily expenses?
Yes 25 83.33% 1
No 5 16.67% 2

In Question no. 5 “Does your sales enough for your daily expenses?”
 Pertaining to the interpretation of data from the respondents’ answers in
the table above, 25 out of 30 or 83.33% of the respondents said that their sales are enough for
their daily expenses while 5 out of 30 or 16.67% of the respondents answered that their sales are
not enough for their daily expenses.

QUESTION NO.6
6.) Do you follow the Frequency Percentage Ranking
price policy for your
customer?
Yes 22 73.33% 1
No 8 26.67% 2

In Question no. 6 “Do you follow the price policy for your customer?”
Pertaining to the interpretation of data from the respondents’ answers in
the table above, 22 out of 30 or 73.33% of the respondents state that they follow the price policy
while 8 out of 30 or 26.67% of the respondents said that they don’t.

QUESTION NO.7
7.) Do you get full Frequency Percentage Ranking
satisfaction from
your sales?
Yes 22 73.33% 1
No 8 26.67% 2

In Question no. 7” Do you get full satisfaction from your sales?”

Pertaining to the interpretation of data from the respondents’ answers in
the table above, 22 out of 30 or 73.33% of the respondents said that they have full satisfaction on
their sales while 8 out of 30 or 26.67% of the respondents are not satisfied on their sales.
QUESTION NO.8
8.) Do you think the Frequency Percentage Ranking
strategies you use
are effective in
making higher
profit?
Yes 24 80% 1
No 6 20% 2
In Question no. 8 “Do you think the strategies you use are effective in making higher profit?”
Pertaining to the interpretation of data from the respondents’ answers in
the table above, 24 out of 30 or 80% of the respondents answered that their strategies they use
are effective while 6 out of 30 or 20% said that it’s not effective.
QUESTION NO.9
9.) Top 4 strategies Frequency Percentage Ranking
that you think are
effective in
increasing your
profit.
A. Online Marketing 2 6.67% 5.5
B. Give Flyers 1 3.33% 7
C. Make Jingle 1 3.33% 7
D. Provide Sales or 4 13.33% 4
Promo
E. Reduce Price of the 2 6.67% 5.5
Product
F. Keeping good 7 23.33% 1
quality of the food
G. Good Service 6 20% 2
H. Catchy Business 0 0% 9.5
Name
I. Game Twist 0 0% 9.5
J. Begging Costumer 1 3.33% 7
K. Sales Talk 5 16.67% 3

In Question no. 9 “Top 4 strategies that you think are effective in increasing your profit.”
Pertaining to the interpretation of data from the respondents’ answers in
the table above, 7 out of 30 or 23.33% of the respondents said that their top 1 strategy is
Keeping the good quality of the product, 6 out of 30 or 20% of the respondents answered that the
top 2 strategy is Good service, 5 out of 30 or 16.67% respondents state that the top 3 strategy is
Sales talk, and 4 out of 30 or 13.33% of the respondents state that the top 4 most effective
strategy is Providing sales or promo.
 QUESTION NO.10
10.) What do you Frequency Percentage Ranking
think are the factors
that affect the
bankruptcy of the
business?
Competition 9 30% 2
Poor Management 11 36.67% 1
Inflation 6 20% 4
Not Interesting 4 13.33% 3
product

In Question no. 10 “What do you think are the factors that affect the bankruptcy of the
business?”
Pertaining to the interpretation of data from the respondents’ answers in
the table above, 11 out of 30 or 36.67% of the respondents answered that poor management is
the reason of bankruptcy of the business, 9 out of 30 or 30% of the respondents said it is because
of competitors, 6 out of 30 or 20% of respondents said hat I is because of inflation, lastly, 4 out
of 30 or 13.33% of the respondents said that it is because the product is not interesting.