Colegio De Sebastian

Mac Arthur Highway, San Isidro, San Fernando, Pampanga

The UAD Partnership

A Project Feasibility Study

Presented to the School of Business Administration
Major in Financial and Human Resource Development
Management

In Partial Fulfillment of
The Requirements for the Degree of
Bachelor of Science in Business Administration
Major in Financial and Human Resource Development
Management

Canlas, Dominico
Castor, John Fernando
Fernicol, Maria Angelica
Garcia, Elijah Vrigitte
Gonzalez, John Paul
Sunga, Marjorie

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CHAPTER 1

In this day and age governed by mostly technology, the demand for jobs and the
need for monthly earnings to make ends meet is increasing by the day. We Filipinos are
known to be hard workers and working overnight shifts or burning the midnight oil which
is a common thing for us as earning the money to provide for our families is extremely
important. With hard work comes the load it brings to the human body, in which all
aspects are affected. Stress is the body's reaction to any change that requires an
adjustment or response. The body reacts to these changes with physical, mental, and
emotional responses. Stress is a normal part of life. You can experience stress from
your environment, your body, and your thoughts. Too much stress though is a different
story as it happens your daily lives. It can bring about anxiousness, excessive worry,
affects sleeping patterns. All in all stress affects the human health. Relaxation comes in
many forms nowadays as it is the solution for stress. It may be in the form of a vacation
with your family, physical activities, a good rest, but for people who are mostly occupied
with their time and cant even make time to plan a relaxing activity, they usually resort to
massage therapy in the nearest massage parlor in their area. Massage parlors are
usually well-designed in all aspects. From the ambiance of the light, relaxing music
played, and the therapeutic smell brought about by the their aromatherapy scents.
Although it does help in aiding in relaxation, it comes with a price which most people
cant afford. Different massage parlors provides a wide variety of massage techniques
which also means different prices depending on the service availed by the customer.
When people cant afford the therapy, they just avail the oil needed or just a simple
essential oil. An essential is a natural oil typically obtained by distillation and having
characteristic fragrance of the plant or other source from which it is extracted. It is
nowadays the remedy for people who need to relax while on the go and also the aid for
injuries such as bruises but that’s about the only benefit it could give.

Now here comes an idea for a new remedy for the hard working Filipinos we have
nowadays. An idea which answer’s the question: What if there’s a product with the
relaxing benefits of an aromatherapy scent and the benefits of an essential oil and also
skin benefits of raw materials such as honey and aloe vera? Benefits that are not

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utilized or known by the public. The idea conjured up is what the proponents called the
“AHM Body Massage Oil”. The proposal for the product was made for the purposes of
providing the society a remedy for stress that is hand held, raw, and cost efficient. The
proponents also wants to prove that it can be made by organic ingredients to avoid
irritations of our skins especially our world is suffering in a global warming case.

Background of the Study

An essential oil is a natural product extracted from a single plant species. Not all
plants produce essential oils, and in the plants that do, the essential oil may be found in
the roots, stems, leaves, flowers, or fruits. People use essential oils for the purposes of
mood improvement and stress relieving. Essential oils dates back in ancient Egypt and
they utilize it for medicinal purposes since it is extracted from plants that are considered
medicinal plants. Since then the practice of the use of herbs and aromatic plants have
been passed on. From the Egyptians to the Chinese which went on to the Romans and
Greeks. According to French Chemist Rene Maurice Gattefosse, essential oils are
absorbed by the body and interact with the body chemistry. As the utilization of essential
oils moved from the west to the east, it eventually found its way into the Philippines,
although our technology in the extraction isn’t as good as other countries, we will
eventually catch up. (healthline.com)

The Philippines is a tropical country, various plants and trees are found and it is
known to be rich in natural resources. Among these plants namely is the Aloe Vera and
Peppermint. Aloe vera, sometimes described as a "wonder plant," is a short-stemmed
shrub. Aloe is a genus that contains more than 500 species of flowering succulent
plants. Aloe Vera extracts moisturizes the skin without giving it a greasy feel, so it`s
perfect for anyone with an oily skin complexion. For women who use mineral-based
make-up, aloe vera acts as a moisturizer and is great for the face prior to the application
to prevents skin drying. For Peppermint, Peppermint, (Mentha ×piperita), strongly
aromatic perennial herb of the mint family (Lamiaceae). Peppermint has a strong
sweetish odour and a warm pungent taste with a cooling aftertaste. The leaves are
typically used fresh as a culinary herb, and the flowers are dried and used to flavour
candy, desserts, beverages, salads, and other foods. Its essential oil is also widely used
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as a flavouring. The plant is a hybrid between watermint (Mentha aquatica) and
spearmint (M. spicata) and is cultivated in Europe, Asia, and North America. Peppermint
has square stems, stalked, smooth, dark green leaves, and blunt oblong clusters of
pinkish lavender flowers. As with other mints, the plant can spread aggressively by
means of stolons (underground stems). These 2 are just some of our main ingredients
and we still have another ingredient which is Honey. Honey is a sweet, viscous food
substance produced by bees and some related insects. Bees produce honey from the
sugary secretions of plants or from secretions of other insects, by regurgitation,
enzymatic activity, and water evaporation. Bees store honey in wax structures called
honeycombs. Thanks to its anti-bacterial nature, it helps heal wounds faster. For the
same reason, it is also good to prevent and treat acne and breakouts. It is the ultimate
cleanser moisturizer. Applying a thin layer of honey on your skin leaves it smooth,
supple and nourished, cleansing it without stripping it off natural oils. Honey is a good
de-tan agent, while combating the damages caused by excessive exposure to sun like
rashes and sunspots. It boosts overall complexion and skin health. Since it is high
in antioxidants, it is great to slow down the ageing process and treat mature skins.
(www.britannica.com)

As the proponents realize the rising percentage of people who disregard their health
for the sake of getting the job done, an idea for a hand carry remedy was conjured up.
The proposal is a Body massage oil with the added benefits of Honey, Peppermint, and
Aloe vera, hence the name AHM Body Massage Oil, abbreviation of the 3 main raw
ingredients. It is an oil that not only provides a relaxing sensation but also an aromatic
scent that is therapeutic in itself.

Objectives of the Study:

 To discuss the history of the type of product used

 To discuss the history of the name of the product

 To discuss the product proposed by the partnership

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 To identify the raw materials used in the product and discuss its benefits

 To discuss the Scope of the whole study

 To discuss the Delimitations of the Study

Scope of the Study

This study covers the benefits of the raw material’s, Aloe Vera, Peppermint, and
Honey and its application through a body massage oil. The proponents chose and
developed this idea for a body massage oil since Filipinos are known to be hard workers
and look to find ways and remedies to relax and relieve stress. Other essential oils may
offer stress relieving benefits but it can only be utilized or maximized depending on the
massage technique used and none of them has benefits of raw materials like AHM Body
Massage oil does. AHM Body Massage Oil, unlike other products, is very easy to carry
and isn’t fragile due to it’s packaging. The proposed product is way more affordable
compared to other essential oils.

The product will be distributed via delivery on bulk order which can be ordered
online or directly at the front door. Mode of payment option is via Cash on Delivery when
orders are made online, and pay as you order when it’s a direct purchase. The business
primarily is located at Holy Angel Village, Brgy. Telabastagan, City of San Fernando,
Pampanga. The proponent’s are primarily targeting seven (7) barangays in the City of
San Fernando namely the Barangay’s Sindalan, Calulut, Dolores, Bulaon, Maimpis, San
Agustin, and Telabastagan. Orders are accepted from customers within the City of San
Fernando, Pampanga area. Customers ordering outside the San Fernando area are
also accepted and deliveries can be made via door to door method with JRS express,
but it’s only limited strictly within the pampanga area. The product is suitable for people
aging from 18 years old and above.

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Delimitations of the Study

This study is limited only to the pampanga area especially to the city of san
fernando area. For now, the business wont be entertaining any orders outside the
pampanga area since it will be focusing on its target location. The business also isn’t
offering any other product types aside from AHM body massage oil. The said product is
also prohibited for kids without assistance from adults as kids can just accidentally place
the product inside their mouths which might cause poisoning. Safety and protection of
customers is one of the main concerns of any business and this study will make sure
that the customers will be guided on the product’s usage at all times

This study is also limited with regards to people with allergies to essential oils
which is also known as anaphylaxis and also to people with skin diseases such as staph
infections, carbuncles, leprosy, boils, and the like. Since the product application is
mainly through massage, many portions of the skin will be applied which increases the
risk that people who are unaware of their potential skin problems will be affected.
People who also cant handle the strong scent of the product may trigger respiratory
problems like asthma.

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Definitions of Terms

1. Acupuncture - an originally Chinese practice of inserting fine needles through the

skin at specific points especially to cure disease or relieve pain (as in surgery)

2. Acupressure - the application of pressure (as with the thumbs or fingertips) to the
same discrete points on the body stimulated in acupuncture that is used for its
therapeutic effects (such as the relief of tension or pain)

3. Ayurveda - a form of alternative medicine that is the traditional system of

medicine of India and seeks to treat and integrate body, mind, and spirit using a
comprehensive holistic approach especially by emphasizing diet, herbal
remedies, exercise, meditation, breathing, and physical therapy

4. Avicenna - 980–1037 also Ibn Sīnā Islamic (Persian-born) philosopher and

scientist

5. Distillation - the process of purifying a liquid by successive evaporation and

condensation

6. Pathologist - one who interprets and diagnoses the changes caused by disease
in tissues and body fluids

7. Bacteriologist - a science that deals with bacteria and their relations to medicine,
industry, and agriculture

8. Disenchanted - no longer happy, pleased, or satisfied

9. Orthodox - conforming to established doctrine especially in religion

10. Antioxidants - a substance (such as beta-carotene or vitamin C) that inhibits

oxidation or reactions promoted by oxygen

11. Auxin - any of various usually acidic organic substances that promote cell
elongation in plant shoots and usually regulate other growth processes

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12. Plethora - a bodily condition characterized by an excess of blood and marked by
turgescence and a florid complexion

13. Periodontitis - inflammation of the supporting structures of the teeth and

especially the periodontal membrane

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 CHAPTER II

MANAGEMENT STUDY

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Chapter 2

Management in business is not merely giving orders or suggestions to their

subordinates, it also operates through functions of planning, organizing, leading, and
controlling which makes business more progressive with their ventures. Successful
processes and procedures are dependent on hiring the right people.

Through organization, planning and direction, good managers are able to lead
employees to perform their best work. Management has the job to make sure all the
employees are stayed on their task and focused. In order to make the management
function well in business, it must provide some activities such as team building to
strengthen and improve the relationship of every individual for them to communicate
well for the betterment of the business.

“An art of knowing what to do, when to do and see that it is done in best and cheapest
way.”

By: F.W Taylor

Objectives of the study:

1. It allows for ensuring that the work done by the individual elements of the firm are
combined for the continuance of the collective objective of the firm.

2. Ensuring the efficiency of the study.

3. Establishing compliance to the Plan and Controlling.

4. Expand the shareholders revenue and maintain it.

Mission Statement

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 To engineer top quality and innovative organic products with the purpose of
relaxing, renewing, and reviving a person’s mind, body, and strength.

Vision Statement

To be the best producer of top quality organic massage oils in the City of San
Fernando Pampanga by the of year 2023.

Forms of Business Ownership

According to Article 1767 of the civil code of the Philippines defines a

partnership “By the contract of partnership two or more persons bind themselves
to contribute money, property, or industry to a common fund, with the intention of
dividing the profits among themselves.”
A type of business organization in which two or more individual pool
money,skills, and other resources, and share profit and loss in accordance with
terms of the partnership agreement. In absence of such agreement, a
partnership is assumed to exit where the participants in an enterprise agree to
share the associated risks and rewards proportionately.

When establishing a partnership, you should have a partnership

convention in place. This is essential because it constitute the label of the
partnership and can help you rescind disputes later on.

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 ARTICLES OF PARTNERSHIP

OF

UAD PARTNERSHIP

(Partnership Name)

KNOW ALL MEN BY THESE PRESENTS:

That we, John Paul P. Gonzalez (Single), John Fernando Castor (Single), Maria
Angelica Fernicol (Single), Elijah Vrigitte Garcia (Single), Dominico Canlas (Single),
Marjorie Sunga (Single), the undersigned partners, all of legal age, residents and
citizens of the Philippines, have on this day voluntarily associated ourselves together
for the purpose of forming a General Partnership under the following terms and
conditions and subject to existing and applicable laws of the Republic of the Philippines:

AND WE HEREBY CERTIFY:

ARTICLE I

Partnership Name: That the name of this partnership shall be “UAD

(Ups and Downs) Partnership” and shall transact business under the said company
name.

ARTICLE II

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Business Purpose: To engineer top quality and innovative organic products with the
purpose of relaxing, renewing, and reviving a person’s mind, body, and strength.

ARTICLE III

Principal Place of Business: That the principal place of business of this partnership
shall be located at:

5-32 Bauzon St, Phase 1, Holy Angel Village, City of San Fernando, Pampanga.

(Complete Address)

ARTICLE IV

Term of Existence: That this partnership shall have a term of ten (10) years from the
date of registration of its Articles of Partnership with the Securities and Exchange
Commission and it is renewable.

ARTICLE V

Partners’ Circumstances: That the names, nationalities and complete residence

addresses of the partners are as follows:

Name Nationality Residence

John Paul Gonzalez
Maria Angelica Fernicol
Elijah Vrigitte Garcia
Filipino Holy Angel Village, Brgy
Telebastagan Pampanga
Filipino Rockville Heights, City of
San Fernando Pampanga
Filipino Northville Phase II, CSFP

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 Marjorie Sunga Filipino Ramar Village, City of San
Fernando Pampanga
John Fernando Castor Filipino Purok 4 San Isidro, City of
San Fernando Pampanga
Dominico Canlas Filipino Tulaoc San Simon
Pampanga

ARTICLE VI

Capital Contributions: That the capital of this Partnership shall include cash and
property contribution among the partnership. Total contribution at the amount of EIGHT
HUNDRED FIFTY THOUSAND (P850,000.00) Philippine Currency as follows:

Name of Partner Amount Contributed Percentage Type

Contributed
Elijah Vrigitte ₱ 200,000.00 24% Cash
Garcia
Maria Angelica ₱ 100,000.00 12% Cash
Fernicol
John Paul ₱ 100,000.00 12% Cash
Gonzalez
John Paul ₱ 150,000.00 18% Vehicle
Gonzalez
Marjorie Sunga ₱ 100,000.00 12% Cash
John Fernando ₱ 100,000.00 12% Cash
Castor
Dominico Canlas ₱ 100,000.00 12% Cash
Total ₱ 850,000.00 100%
That no transfer of interest which will reduce the ownership of Filipino citizens to less
than the required percentage of capital as provided by existing laws shall be allowed or
permitted to be recorded in the proper books of the partnership.

ARTICLE VII

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Sharing Ratios: That the profits and losses shall be distributed according to their ratio
of money, property, or industry (Article 1767) of this partnership, however, such
distribution is limited to the amount not to exhaust cash requirement of the operation. In
the event that a profit has been incurred, profit shall only be distributed and be
withdrawn not to the extent of the amount of original investment of each partner.

ARTICLE IX

Management: That this partnership shall be under Elijah Vrigitte Garcia, as General
Manager, who shall be in charge of the management of the affairs of the company. She
shall have the power to use the partnership name and in otherwise performing such
acts as are necessary and expedient in the management of the firm and to carry out its
lawful purposes. Marketing and Procurement shall also be assigned to any qualified
partner. Sales and the means of delivery may also be delegated to any or partner/s who
holds higher position in management. Appointments can be done to any qualified
partner, or any available as agencies may arise to handle situation.

ARTICLE X

Undertaking to Change Name: That the partners undertake to change the name of
this partnership, as herein provided or as amended thereafter, immediately upon receipt
of notice or directive from the Securities and Exchange Commission that another
corporation, partnership or person has acquired a prior right to the use of that name or
that the name has been declared as misleading, deceptive, confusingly similar to a
registered name, or contrary to public morals, good customs or public policy.

IN WITNESS WHEREOF, we have here unto affixed our signatures this ____day of
_______, 20____ at ____

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 _______________ ________________ ________________
John Paul Gonzalez Elijah Vrigitte Garcia Maria Angelica Fernicol
#779-88-0895 #079-15-6469 #249-02-6991

_______________ ________________ ________________

Dominico Canlas Marjorie Sunga John Fernando Castor
#961-15-2541 #987-12-4562 #965-98-2012

NOTARY PUBLIC

Book No.:
Page No.:
Doc No.:
Series of:

Organizational Structure

PMFG IREAN ONRA DEKN RUEC ACTE ILT N I OG N / O P E R A T I

WONM FNAOW F NRO I CAKF R EG F K RIE CE R/ EDR R I V E R
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 Figure 1.

The Functional Organizational Structure of the UAD Partnership

The proponent’s choose a line type organization because it is simple yet highly
effective and adaptable, it has an bulge of fast decision making. This type of
organization shows how the line of authority flows vertically from the top most
executive to the lowest subordinate.

Job Positions and Responsibilities:

The General Manager

This position is assigned to any available, qualified and highly skilled partner. The
position requires that the main responsibility is to organize all the levels of position for
functionality in accordance with their job description. Maintaining the level of quality of
work for every level of management. To coordinate with up-to-date progress, risk
incurred, possible treat and other factors that may improve operation of the business.
Make a review and observation in every aspect of the operation. Notify on timely basis
all important matters and updates that will enhance and maintain high level of services.

Job Specifications:

• Having at least 2 years Managerial experience

• Degree in any business administration or management course

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 • At least 24- 30 years old
• Can work under pressure
• Pleasing Personality
• Team Player/ Leader
• Analytic Thinking
• Excellent Communication and people skills
• Motivated
• Can work flexible hours

Job Description:

 Excellent verbal and written communication skills

 Oversee day-to-day operations

 Design strategy and set goals for growth
 Maintain budgets and optimize expenses
 Set policies and processes
 Ensure employees work productively and develop professionally
 Oversee recruitment and training of new employees
 Evaluate and improve operations and financial performance
 Direct the employee assessment process
 Prepare regular reports for upper management
 Ensure staff follows health and safety regulations
 Provide solutions to issues (e.g. profit decline, employee conflicts, loss of
business to competitors)

Production/Operations Officer

Production or production planning officers help create and maintain the process
of production in a company. They make sure everything on the production floor is
working according to plan and policy. Their large responsibility is usually financially
compensated fairly well. They oversee workers who build and transport products.
Officers spend a large portion of their time on the factory floor watching team members
and verifying productivity rates. He will also report directly to the General Manager if

18
there is shortage in the inventory in advance so that the G.M may plan ahead for
acquisition of new supplies on a consistent basis. Since the Production Officer handles
the Prod. Workers, Any violation of the workers will also be directly reported to the
General Manager.

Job Specifications:

• Degree in Marketing or Business Administration course

• At least 24-30 years old
• Industry experience required
• Strong communication skills
• Great leadership skills
• Goal oriented
• creative under pressure
• knowledge of current marketing trends and multimedia platforms
• strong budgeting, internet, and computer skills

Job Descriptions

 Shift and on-call work may be required

 Supervising the work of junior staff

 Ensuring that health and safety regulations are met

 Technical skills

 Project management skills

 Organization and efficiency

 Leadership and interpersonal skills

 Problem solving skills

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  IT and numerical skills

 Communication skills

Financial/Marketing Officer

It involves providing financial and administrative support to colleagues, clients

and stakeholders of the business. Finance Officer should highlight the need for
candidates who are focused on outcomes, excellent problem solvers and strong
communicators. Responsible one for all marketing strategies and activities within the
company. They also provide direction and feedback on major projects. They make key
decisions regarding product distribution, budgeting, branding, and sales and they also
works with other company officers to set the overall direction and objectives for product
and service offerings. Mainly, The budget forecasting and promotional aspects of the
entire business depends on the Finance/Marketing Officer as he/she will assess if the
business is gaining profit and will report directly to the General Manager for any
financial status of the business and also for possible promotional medium that can be
utilized for the business’ advantage.

Job Qualifications:

• Must have at least a degree in marketing or business administration, BS

accountancy or financial management, CPA is an advantage
• Degree in marketing or business administration course
• At least 24-30 years old
• Industry experience required
• Strong communication skills
• Great leadership skills
• Goal oriented
• Creative under pressure

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 • Knowledge of current marketing trends and multimedia platforms
• Strong budgeting, internet, and computer skills
• Must be keen on details
• Has a great sense of urgency
• Well organized
• Can work with minimal supervision

Job Specifications:

 Assisting in the preparation of budgets

 Monitor the day-to-day financial operations within the company, such as
payroll, invoicing, and other transactions
 Oversee financial department employees, including financial assistants and
accountants
 Contract outside services for tax preparation, auditing, banking, investments,
and other financial needs as necessary
 Track the company's financial status and performance to identify areas for
potential improvement
 Seek out methods for minimizing financial risk to the company
 Research and analyze financial reports and market trends
 Creating and developing new innovative ways to communicate the company
message to their existing customers.
 Contributing to the annual sales and marketing plan.
 Planning and project managing marketing events and evaluating their
success.
 Evaluating the effectiveness of all marketing activity.
 Developing and implementing an internal marketing programme.
 Starts assembly and production machinery at beginning of shift.
 Provide insightful information and expectations to senior executives to aid in
long-term and short-term decision making
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  Review financial data and prepare monthly and annual reports
 Present financial reports to board members, stakeholders, executives, and
clients in formal meetings
 Stay up to date with technological advances and accounting software to be
used for financial purposes
 Establish and maintain financial policies and procedures for the company
 Understand and adhere to financial regulations and legislation.

Production Crew/Driver

A production crew or a production worker is responsible for operating and

maintaining equipment in a factory or warehouse and preparing items for distribution. It
involves assembling and checking product parts, ensuring that all machinery runs
smoothly, and assisting in the shipment of items. It also cleans and operates factory
equipment, works on an assembly line, puts together and inspects products, and
adheres to all factory safety guidelines and standards. Also collect items and transport
them to their destinations. They convey a variety of items, ranging from raw materials
up to final products, and may deliver to other businesses or to the public.

Job Specifications:

• Candidate must possess at least High School Diploma or Vocational Diploma or

Short Course Certificate in any field
• Preferably less than 1 year experience specialized in General Work

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 • Willing to learn and can learn fast
• Can do overtime as needed
• Flexible and can work immediately
• Complete papers
• Knows most places in the City of San Fernando

Job Description:

 Work cooperatively with the production team to meet quotas and goals
 Maintains a clean and safe work area
 Observe all safety guidelines and report safety concerns to management
 Follow all written and verbal instructions
 Attend all safety and production training
 Deliver a wide variety of items to different addresses and through different routes
 Make every effort to increase productivity and efficiency without compromising
quality
 Follow routes and time schedule
 Load, unload, prepare, inspect and operate a delivery vehicle
 Ask for feedback on provided services and resolve clients’ complaints
 Collect payments
 Inform customers about new products and services
 Complete logs and reports

Position Analysis

The Position for the managerial and management of the operation must be filled
by all the partners. All Partners are required to render their services according to their
skills and capabilities. The Services required are compensated based on their profit
sharing. The partners may adopt any procedure or adendum to the Articles of

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Partnership for proper determination of the level of services, extensiveness of the
partners participation for an appropriate compensation as an addition to the profit
sharing.

That due to the simplicity and single product production, the partnership may not
be required to hire any employees that will be a part of the operation. However, review
from time to time must be done for appropriate action or implementation.

Outsourcing of Services

Services that are required may be acquire from outside provider of services.
Carriers for freight and delivery are assigned to the qualified providers that yields
beneficial cost return to the products. Security and other services may require for
Licensed Agency that may provide a protection on the location and personnel of the
business.

Cost and Re-enumeration

Any cost incurred by the partners for the benefits of the operation must be settled
by the Partnership. Reimbursement may be done after a proper presentation of
evidence such as official receipts, sales invoices or other pertinent documents.

Rules and Regulations

 The operation of the UAD partnership starts at 8:00 am – 6:00 pm from Monday –
Sunday, an hour of lunch break (12nn)
 Due to a shifting schedule, each employee is given a day-off once a week
 For managers, 8 hours constitute a workday
 A Bundy clock and log book will record the time of arrival and departure of
employees and managers and separate record books will be provided for the sales
and deliveries
 Fair overtime pay will be given based on the overtime rate of DOLE

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 All individuals working in establishment shall be wearing the complete dress code
requirement for both managers and production workers once arrived at the work
place, for the production workers, health precaution garments such as disposable
gloves or masks are disposed of after production. Cleanliness with company
uniform/s is a must and employees must look neat and presentable while on the job.
 Use of cellular phones or any gadgets must be strictly for business purposes only.
Personal calls should be made or received only when necessary or when an
emergency has occurred.
 Employees and employers must never abandon their respective work station during
the said work hours unless its lunch break
 Bringing of deadly weapons or firearms is strictly prohibited
 Vices such as smoking and bringing of liquor inside the work area is strictly
prohibited
 Verbal Abuse or irrelevant altercations is not tolerated in the organization as it
shows immaturity and un-professionalism which may lead to suspensions and
terminations
 Employees and Employers must practice honesty and loyalty inside and outside the
company
 Employees and Employers shall encourage cleanliness of the work environment
 Employees are encouraged to voice out their ideas for a new product to the
management

Employee Performance Standard

 One (1) week of training is given to potential employees to have an overview of the
day to day activities in the company prior to official start in the job.
 Employees are prohibited to work under the influence of alcohol or bringing related
beverages inside the work area is strictly prohibited.
 The duties performed throughout the day must be reported and given to the
managers.
 Tardiness isn’t an excuse. Employees are encouraged to arrive at least an hour
prior to the start of working hours
 Managers must inform their subordinates if they will be arriving late at least 2-3
hours prior to start of working hours.
 Requests for leave has to be notified to supervisors in advance.
 Employees have to be at their appointed workplace at the given time.

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 Without express permission from their supervisor, employees aren’t allowed to leave
the work premises.
 Conflict inside the workplace must be refrained to maintain harmony, consistency,
and productivity.
 Anyone found liable and guilty of acts against the business such as fraud, thievery,
and or dishonesty will be punished in accordance to the law.

Safety, Security, and Sanitation

 The production crew/staff are strictly prohibited in wearing accessories such as

earrings, rings, necklaces, etc
 The production crew/staff must wear the required safety accessories such as
disposable gloves and masks during the production process at all times.
 Cleanliness and orderliness of the workplace must be carefully and properly
observed, this includes the equipment, materials, and also storage.
 Equipment, supplies, or materials should not yet be taken out from the premises
without the supervisor’s permission.
 Personal things such as phones should be properly kept to avoid distractions within
the workplace.
 Theft is punishable by law.

Rules and Regulation of Delivery

 Product orders will be set at a minimum amount of Php 500.00 per customers.
Orders placed before 9:00 A.M. will be delivered within the day, beyond the time
designated will be for the next delivery day.

 Cash on Delivery (COD) will be implemented to all social media and phones calls
order and delivery charges will be on the account of the customer.

 Bottles will be thoroughly checked, wrapped with bubble wrap and are boxed before
leaving the facility, any damages will be caused by the courier

 No Cancellation of Orders

26
  Orders will be verified via phone call at least 1 day before or on delivery itself to
notify the buyer and to know if buyer is ready.

NOTE: Employees who don’t follow or meet the said rules and regulations will be subject to
corrective actions.

Sanctions

Sanctions are important since it gives the employee an opportunity to improve his/her
performance, behavior, compliance, etc. Sanctions are a series of disciplinary and
corrective actions which comprises of written and verbal warnings which has been
proven effective not only in business but in society as well.

CASES FOR DISCIPLINARY ACTIONS AND DISCIPLINARY SANCTIONS

Associated with Attendance

Violation 1st offense 2nd offense 3rd offense

1. Absence without any Oral reprimand Written 1-2 days
prior notice to superiors Reprimand suspension
2. Abuse sick leave Written Reprimand 1-4 days Termination
benefits by claiming or suspension
reporting to be ill even if
its false.
3. Having more than (4) Oral Reprimand Written 3-6 days
unexcused tardiness Warning suspension
every month
Table 1

Exemption: Transport Strikes and Proven Emergencies

Associated with Work Performance Standard

27
 Violation 1st offense 2nd offense 3rd offense
1. Failure to full in or out daily Written 2-4days Termination
report Reprimand suspension
2. Abandonment of Work
2.1 Leaving post without permission Oral Written 1-3 days
while on duty although there is no loss Reprimand Warning suspension
or damage
2.2 Failure to follow the general Oral Written 1-3 days
rules and operational guidelines Reprimand Warning suspension
2.3 Sleeping while on duty Oral Written 1-3 days
Reprimand Warning suspension
3. Refusal of an employee to 1-3 days Termination
answer question by any suspension
investigation authority
conducted by the company
provided such answer would not
contravene his constitutional
rights
Table 2

Associated with Salary, Security, Sanitation and Health

Violation 1st offense 2nd offense 3rd offense

1. Failure or Improper 3 days 1 week Termination
wearing of safety clothing suspension suspension
or complete uniform which
has been provided for such
work
2. Carrying any deadly Oral 3 days Termination
weapon, explosive or Reprimand suspension
firearm
3. Negligence in operating Oral Written 1-3 days
equipment resulting in Reprimand Reprimand suspension
damages on property
28
4. Smoking or carrying Oral Written 1-3 days
flames in prohibited areas Reprimand Reprimand suspension
5. Negligence on the 10 days Termination
assigned work thereby suspension
exposing the company to
losses through lawsuits,
theft, penalty or fine
6. Unauthorized eating in Oral Written 1-2 days
work Reprimand Reprimand suspension
7. Failure to follow the Written 1-3 days Termination
business standard Warning suspension
sanitation procedures
which results in product
contamination or spoilage
8. Littering and/or dumping Oral Written 1-2 days
waste within the company Reprimand Reprimand suspension
premises except in
designated dumping areas
9. Drinking & Bringing 1-3 days Termination
alcoholic beverages inside suspension
the work premises
Table 3

Pertaining to Conduct and Behavior

Violation 1st offense 2nd offense 3rd offense

1. Fighting where on or both Oral 5 days suspension Termination
employees willfully or Reprimand
attempt to inflict injury to
other party
2. Conviction on any criminal Termination

29
 offense
3. Any incident or immoral act Oral Written Reprimand 1-5 days
while inside the business Reprimand suspension
premises
4. Discourtesy, bad manners, Written 1-5 days Termination
rudeness, etc. Reprimand suspension
5. Loitering at production are Written 1-3 days Termination
Reprimand suspension
6. Destroying company Termination
property and Tampering
Table 4

Pertaining to Honesty and Loyalty

Violation 1st offense 2nd offense 3rd offense

1. Theft on a company’s Termination
property or Asset
2. Theft on a fellow Termination
emplyoee’s personal
belongings or property
3. Concealing, mutating, 1-15 days Termination
altering or unauthorized suspension
writing on time records
4. Bribery 1-15 days Termination
suspension
5. Giving false statement in Termination
the documents and
personal documents
6. Revealing to others Termination
confidential information of
the business
Table 5

30
Sanction Pertaining to Dress Code

Violation 1st offense 2nd offense 3rd offense

1. Wearing improper Written 1-3 days 1 week
uniform in working Reprimand Suspension Suspension
hours
2. Not wearing of safety Written 1-3 days 1 week
necessities (helmet, Reprimand Suspension Suspension
facemasks,gloves,etc.)
Table 6

PREFATORY TO POSSIBLE RECRUITMENT

The Partnership may hire or recruit additional manpower as addition to the

working partners, but not necessary for the first five years.

In the event the additional manpower will be required, recruitment agency may
be entertained for the benefit of the Partnership. To lessen the cost of having an HR
manager, but, avail only qualified recruitment agency.

Hiring Process

Successful recruitment is a direct reflection of the validity and professionalism of your

business. Employing the right people for your business is the most important part of
your organization. A good recruitment process can minimize the time involved in the
searching, interviewing, hiring and training. It can streamline these processes and make

31
your search for viable candidates much more efficient. It is very important to build a
positive image to your customers, peers and competitors:

Ar s d ti v s e e Pn ra e r ly i m i dI n e p t h
m e n t S c r e e n i In te r v i
n g e w
P la P h y s ic a E v a l u a ti
mc e e lE x a m i n Rn eg f e r e n
n t a ti o n Figure 2
c e s
 Advertisement

The UAD partnership will be posting job openings through posters, and social media
postings for the time being since it’s a starting business and doesn’t need that much
criteria posted in the advertisement since the business is practically small.

 Preliminary Screening

Screening potential employees is the starting point of every recruitment process.

The UAD partnership will be screening out applicants who contacted us after seeing the
job posts and submitted their resumes and are qualified based on the job description of
the positions.

 In depth Interview

A type of qualitative research involving an unstructured personal interview with a

single respondent, conducted by a highly skilled interviewer. The purpose of in-depth
interviews is to understand the underlying motivations, beliefs, attitudes, and feelings of

32
respondents on a particular subject. The UAD partnership will not only trust in thei
abilities of the applicant but will also take an in-depth sight of their personalities as it will
determine the atmosphere in the work environment.

 Evaluating References

Potential employees will be evaluated further with regards to overall personality and
work ethic with references through people who know them personally or by the people
they worked for or with. The UAD partnership will maximize the information gathering for
potential applicants through evaluating them by contacting people they worked for or the
company they previously worked for. This method may uncover hidden records such as
offenses.

 Physical Examination

This part of the hiring process is crucial as it will determine the physical fitness of
the potential employee and if he/she can endure the daily tasks at hand. The business
operates 8 hrs a day with just an hr of break time, that schedule alone takes a toll on the
body. The UAD partnership will strongly consider the health of its applicants as the
production of the AHM body massage oil is mainly hands on and a sick production
worker may compromise the product.

 Placement

Once every step above has been completed and results have been evaluated,
the applicants who are accepted will now be placed on their specific positions in the
organization. Placement in the production team will be easier as it doesn’t require that
much criteria, but the management team is much more complicated as it will determine
the leadership and the front line of the organization.

Legal Requirements of the Organization

When it comes to starting a business or launching a new product line, most people
do not apply much (if any) scrutiny to their business licenses and permits until

33
something goes wrong. More often than not, business owners expect their license and
business permit requirements to be simple and their certificates to be easily acquired.
As for their renewal deadlines, they assume that those can be dealt with at a later date.
However, the reality is not so simple business owners are routinely fined, stores closed,
and penalties levied against store managers for their lack of compliance, so it’s not as
easy as most people assume. You must consider your legal requirements when starting
your business. If you do not follow legislative requirements and regulations, your
business can face serious penalties. A range of legal requirements may affect your
business.

 Securities and Exchange Commission (SEC) Registration

Partnerships and Corporations are required to be registered with the Securities and
Exchange Commission (SEC). The UAD partnership is a general partnership type of
business organization and legally should be registered under the Securities and
Exchange Commission (SEC) and will comply with all the necessary requirements. The
partnership was bounded under the articles of Co- partnership wherein all the stated
agreements was approved and signed by all the partners in the business organization.

 Mayor’s or Business Permit

All businesses are required to secure a mayor’s permit or business permit from the
local government of the city or municipality where the business is located. Different
cities and municipalities have different registration procedures and requirements. The
following are the general requirements for securing a permit for a new business:

 Community Tax Certificate (CTC) / Cedula

A Community Tax Certificate or Cedula is a document prepared, issued and paid at

the City Treasurer’s Office by individuals or corporations (juridical entities). It is a
documentary requirement when filing an income tax return, registering a new business
and in some cases, this also serves as an identification document pursuant to Section
156 of RA 7160 otherwise known as the Local Government Code of 1991 and Tax
Ordinance No. 2009-002 of the city. The Cedula may be availed by applicants who is
eighteen (18) years of age can process Cedula and pay community taxes. The basic
community Tax is Php 5.00 and an additional for every Php 1,000.00 of income whether
from business, exercise of profession or from property but not to exceed Php 5,000.00.

34
Before obtaining a Barangay Clearance, a business first must obtain a community tax
certificate (CTC).

 Barangay Clearance

Before applying for a mayor’s permit, the Barangay Clearance is required. This
document will serve as proof of registration of the business within the specific
barangay the business will start to operate. This is also proof that your business
complies with all the local rules and regulations of the barangay.

 DTI registration or SEC registration, whichever is applicable

As stated above, The UAD partnership is a partnership type of business

organization which will be registered under the Securities and Exchange
Commission. One of the requirements for acquiring a business/ mayor’s permit is
the registration of the business organization.

 Lease contract or title covering the property where the business is located

The business is located in the full address 5-32 Bauzon St, Phase 1, Holy Angel
Village, Brgy Telabastagan, City of San Fernando Pampanga. It is also the home
address of one of the partners in the organization as they all agreed that the
business will operate in the confines of his home. The title of the said address will
be included in the submission of requirements for acquiring a business permit.

 Locational or zoning clearance

A Zoning Clearance is the procedure used by the City to verify that a

proposed land use or structure is allowed in the applicable zoning district, and
that the project complies with the development standards of this Zoning Code that
apply to the use, consistent with the General Plan.

 Local Building Official Division (LBOD) Clearance

For the issuance of building permits and other related permits as

mandated by law particularly the National Building Code (P.D 1096) , The Local

35
Building Official Division (LBOD) is responsible for it. A building permit is formal
document given by the building official or a government agency to an owner or
applicant as an authorization or granted permission to proceed to any work
activity of a specific structure, building, or project at a particular site with the
approval of the drawings, plans, specifications, and other documents. The
business need a building permit, not only because it is a requirement but also for
it will give the owner an assurance of safety and protection.

 Acknowledgement Slip from City Environment and Natural Resources

Office (CENRO)

Formulate policies, plans and programs, and ensure implementation, thereof,

relative to environmental protection, resource conservation and pollution prevention
to attain sustainable development. The CENRO’s purpose is also to develop a
comprehensive management program on pollution prevention such as air pollution
management, ecological solid waste management and air quality management.
They also formulate measures for the consideration of the Sangguniang
Panlungsod and provide technical assistance and support to the City Mayor in
carrying out measures to ensure the delivery of basic services and provision of
adequate facilities relative to environment and natural resources.responsible for the
implementation of related penal provisions of all national and local laws relative to
environmental protection. Lastly, the CENRO is responsible for the development of
the City Ecological Solid Waste Management System that will address the pollution
of environment and conservation of natural resources.

 Sanitary Permit from the City Health Office (CHO)

An official document issued by the Department of Public health and social

services that authorizes health - regulated establishment to operate. It is a
certificate that is issued by an authorized governmental inspection agency that
confirms the facility and/or cargo has been inspected and meets the minimum
sanitary requirements. The business is required to secure a sanitary permit to
make sure that the standard of the Sanitary Code of the Philippines is observed.

 Fire Safety Inspection Slip / Fire Safety Inspection Certification from the
Bureau of Fire Protection (BFP)

36
 Fire Safety Inspection Certificate is a pre-requisite prior to the issuance of
Occupancy Permit. It signifies that the owner/administrator significantly complied
with the standard requirements recommended by the Fire Safety Inspector/ Fire
safety plan reviewer of the establishment. The reason behind the inspection is to
help identify any potential problems that will lead to fire hazards. Basic prevention
will be discussed and how to respond will be discussed as well. Inspections will be
done once a year, same time as the renewal of business permits.

 Bureau of Internal Revenue

The Bureau of Internal Revenue (BIR) is an agency of the government namely

under the Department of Finance which collects more than half of the total revenues of
the government. It is responsible for for developing a system for correct and regular tax
collection. The UAD partnership will ensure the consistent payment of taxes of the
business to ensure its survival and not to be piled up with tax evasion.

 Social Security System

The Social Security System (SSS) is a state-run, social insurance program

mandated by the Philippine Government to cover all income earners or workers in the
private sector. Through labor and security laws, the businesses registered are obliged to
ensure that their hired employees or laborers are covered by viable tax exempt social
security service and protection against hazards of disability, sickness, maternity, old
age, death, and other potential incidents that may result in loss of income.

 Philippine Health Insurance Corporation (PhilHealth)

All government and private sector employers are required to register with PhilHealth
to enable them to provide social health insurance coverage to their employees. The
employers may register through the Philippine Business Registry (PBR). The
established business of the UAD partnership must register to this insurance corporation
to ensure a sustainable insurance program for all the employees.

 Pag - ibig Fund/ Home development mutual fund. (HDMF)

37
 Employers are also required to contribute, on behalf of their employees, to the
Home Development Mutual Fund, also known as Pag - Ibig Housing Development
Program (Republic Act 7835). This government agency, provides the lowest interest
housing and land acquisition loans to its members that are payable for up to 30 years.
This gives an opportunity for Filipino workers to own a house in easy payment plans.

Manpower Requirements

Manpower affects everything in a business from production to client

relationships. Without adequate and supportive manpower, a business will never be
successful. The staff should be well trained on their tasks while managers should know
how to lead. Manpower is directly proportionate to the word productivity as manpower
impacts everything from production to client relationships, so managers pay careful
attention to the number of workers a business engages at any given time. The UAD
partnership limited its manpower requirements to just 6 people for now as it is a just a
starting business. The manpower of the UAD partnership comprises of six (6) people
namely, A General Manager, A Finance/Marketing Officer, A Production Officer, two (2)
Production Workers, and a Production Worker who is also a driver in which he delivers
the products availed after the production days are done.

Schedule of Manpower, SSS,PhilHealth and Pag-ibig

Year 2018-2019
General and Administrative
SSS
Position Monthly ER EE PhilHealth Pag ibig
General Manager 21,000.00 1,178.70 10.00 288.75 100
Financial Officer 15,000.00 1,105.00 10.00 206.75 100
Marketing Officer 12,000.00 884.00 10.00 165.00 100
Production officer 15,000.00 1,105.70 10.00 206.25 100
Total Monthly 63,000.00 4,272.70 40.00 866.25 400
Annually 756,000 51,272.40 480.00 10,395.00 4,800.00

Direct Labor

Position Monthly ER EE PhilHealth Pag ibig

Production Workers 8,000.00 589.3 10.00 137.50 100
Production Worker 9,850.00 736.7 10.00 137.50 100

38
 – Driver
Total Monthly 17,850.00 1,326 20.00 275.00 200
Annually 214,200.00 15,912.00 240.00 3,300.00 2,400.00

Table 7

Employee’s Work Schedule

Table 8

Legal Requirements of the Employees

Complying with the legal requirements not only means the organization as a whole
but also the employees as well. According to the law, employers must meet certain
employer obligations. The Job Description has been posted for its criteria to be met by
potential applicants and its the employer’s job to ensure that these potential applicants
meet the criteria posted. Any and all employees should attend the induction trainings
and especially a brief orientation to become familiar with the workplace. The employers
are also obliged to ensure that the management has followed due process and
complied with all the legal documents or requirements of the employees that are
necessary. These documents are needed for insurance issues and for safety and
welfare of all the employees.

 Birth Certificate

39
 Is an official document issued to record a person's birth, including such identifying
data as name, gender, date of birth, place of birth, and parentage. The UAD partnership
requires proof of identity and avoidance of underage workers which may result in cases
such as illegal recruitment.

 Transcript of Records (TOR) / Diploma

The transcript of records, also known as academic records or sometimes as student

records, are closely linked with the learning agreement plan, which is an official
document that specifies the courses, research and training/teaching activities you are
supposed to achieve during your mobility. The UAD partnership will ensure that the
each and everyone of their employees has legit and authentic academic documents be
it college diplomas for managerial positions, or high school diplomas for production
workers. These documents may also serve as references for the employees
background and falsification of these documents may lead to legal consequences.

 Barangay Clearance

A document certifying that the applicant is of good moral character and a good
resident of a given town. Any negative record within the given town will be indicated in
the barangay clearance.

 Police Clearance

A police clearance is one of the essential documents requested by a government

agency or an employer to ensure that the applicant has no criminal record. The UAD
partnership will not compromise its workers and the harmony of its workplace and stain
its name by making a mistake of recruiting and employing someone with a criminal
record.

 Social Security System, Pag - Ibig, and PhilHealth Numbers

Applicants are required to obtain SSS, Pag - Ibig, and Philhealth number. Monthly
contribution to the said insurance companies will be made via deduction to their monthly
salary. These insurance companies ensure the welfare of the laborers and the UAD
partnership will ensure that monthly contribution to these agencies will remain constant
for the welfare of its employees.

40
 Tax Identification Number

As a citizen of the Philippines or a company doing business there, you must file
taxes with the Bureau of Internal Revenue, the country's tax agency. Before doing so,
you must obtain a Tax Identification Number in the Philippines. A TIN officially identifies
taxpayers of the Philippines, and those who have one will use it their entire lives. A TIN
card can also serve as a valid ID in many instances. Private or government entities can
request it in certain situations, such as for driver's license applications. Using or
applying for more than one TIN is illegal. Committing this criminal act can result in
arrest, a fine or imprisonment.

 Physical and Medical Examination/ Certificate

The basis of the physical examination. Potential employees must have a medical
certificate to assure that the employee is physical fit to handle all the stress in the
workplace especially in the production area. The UAD partnership emphasizes on the
physical fitness of its employees since the production of the AHM body massage oil is
mainly hands on.

Employee Benefits

Employee benefits are defined as indirect, non-cash, or cash compensation paid

to an employee above and beyond regular salary or wages. Some employee benefits
are required by law which is also known as Mandatory Benefits. Under the Philippine
Labor Code, employees are entitled to monetary benefits such as the minimum wage,
13th month pay, and overtime pay, among many others. In addition, the Labor Code
also requires employers to become members of the Pag-IBIG Fund, PhilHealth, and
SSS, as well as remit monthly contributions on behalf of their employees to these
government offices. This ensures that employees have access to affordable house
financing, health insurance, and social security benefits, as mandated by the law.
Employers must also pay for unemployment benefits on employees' behalf. Other

41
benefits are offered by employers to enhance the compensation provided to employees
in order to avoid employee turnover. The UAD partnership may just be a starting
business but it will make sure that each of its employees will receive the benefits that
they deserve.

Mandatory Benefits

Businesses registered should abide by the law. Not only does this mean
obligation to the requirements asked but also to the laws implemented for the people
inside the organization. Mandatory benefits are benefits given to employees required by
the Law. The UAD partnership ensures that the Mandatory Benefits of its employee will
be monthly paid for the purpose of its employee’s motivation to be productive each and
everyday for the betterment of the business. Below are some of the Mandatory Benefits
required.

Social Security System

The Social Security System provides benefits and services to the covered
employees and their families. The company and the employees jointly make monthly
contributions to the SSS.

Phil Health

The PHILHEALTH program provides benefits for hospitals room and board
allowance, allowance for medicine, laboratory examinations, X-ray, operating room and
dental practitioner’s fee, however, the allowance will not necessarily cover the total
expense incurred.

Pag-ibig (PagtutulungansaKinabukasan: Ikaw, Bangko, Industria at Gobyerno)

42
 Pag-ibig is a Philippine government owned and controlled corporation under the
Housing and Urban Development Coordinating Council responsible for the
administration of the national savings program and affordable shelter financing for
Filipinos employed by local and foreign based employers as well as voluntary and self
employed members. It offers its members short term loans and access to housing
programs. Coverage of the PAG-IBIG fund is mandatory upon all employees covered by
the Social Security System and earning a monthly compensation of at least 5,000.

13th Month Pay

Every year, employees are entitled to a 13 th Month Pay which is equivalent to 1/12 of
their basic salary. This is released not later than December 24.

Employees Monthly Salary 13th Month Pay

General Manager 21,000.00 22,750.00
Financial Officer 15,000.00 16,250.00
12,000.00 + 1% 13,000.00 + 1%
Marketing Officer commission on sales commission on sales
Production
Officer/Logistic 15,000.00 16,250.00

Production Worker 8000.00 8,666.67

Production Worker/
Driver 9850.00 10,670.83
Table 9

Note: Monthly Salary ÷ 12 = 13th month pay

Marketing Officer’s base pay varies as it has 1% commission on sales

Maternity Leave

43
 Employees are entitled to take a leave of up to 60 days to give birth through
normal delivery, miscarriage or medically necessary abortion; or a 78-day leave in case
of caesarean section delivery.

Note: The Expanded Maternity Law (RA. 11210)

President Rodrigo Duterte has signed into law a bill that will grant additional leave benefits for
working mothers. Under the measure, all working mothers in the government and private sector are
guaranteed with 105 days of paid maternity leave credits, with 7 days transferable to fathers. An
additional 15 days of paid leave will be granted to single mothers. Under the previous law, employed
women are entitled to 60 days of paid leave for normal delivery and 78 days for caesarean delivery. The
law gives mothers the option to extend their leave for another 30 days without pay, provided that the
employer is given due notice in writing at least 45 days ahead before the end of the maternity leave. For
cases of miscarriage or emergency termination of pregnancy, a 60-day paid maternity leave shall be
granted to a female worker.

 Paternity Leave

All married male employees are entitled to 7 working days, paternity leave
with pay or it is monetary equivalent for the first four (4) deliveries of the
legitimate spouse with whom he is living with

 Sick Leave

All regular employees who uses sick leave shall be entitled to 5 days sick
leave with pay. Workers who have sick leave once a month. Workers are
required to submit a medical certificate with the cause of the illness. If the
employees did not submit the requirements, the company has the right not
to give the benefits.

 Vacation Leave

44
 All regular employees who have worked in the company for at least 1 year
must have a 5-day vacation leave.

Compensation Analysis 2019

Table 10

Schedule of Employees, SSS,PhilHealth and Pag-ibig

Year 2018-2019
General and Administrative

SSS

Position Monthly EE PhilHealth Pag ibig Total Tax Net Pay

General Manager 21,000.00 581.3 288.75 100 1,577.45 18,452.50

Financial Officer 15,000.00 545.00 206.75 100 1,421.75 12,726.50

Marketing Officer 12,000.00 436 165 100 1,159.00 10,140.00

Production officer 15,000.00 545.00 206.25 100 1,421.95 12,726.80

Total Monthly 63,000.00 2,107.30 866.25 400 5,578.95 54,045.80

Annually 756,000 25,287.60 10,395.00 4,800.00 11,159.10 648,549.60

Direct Labor

Position Monthly EE PhilHealth Pag ibig Total Tax Net Pay

Production Worker 8,000.00 290.7 137.5 100 836.8 6,635.00

Production Worker – Driver 9,850.00 363.3 137.5 100 984.2 8,265.00

Total Monthly 17,850.00 654 275 200 1,821 14,900.00

Annually 214,200.00 7,848.00 3,300.00 2,400.00 21,852.00 178,800.00

45
  Schedule of Non-Working Holidays

These are to non-working holidays declared by the Malacanang and will

be exercised by the management.
Regular Holidays

Title Date
New Year’s Day January 1
Maundy Thursday Movable
Good Friday Movable
Araw ng Kagitingan April 9
Labor Day May 1
Ed-al-Fitr Movable
Independence Day June 12
National Heroes Day Last Monday of August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30

Table 11

Special (Non-Working) Holidays

Title Date
Chinese New Year Movable

46
 Black Saturday Movable
Ninoy Aquino Day August 21
All Saints Day November 1
New Year’s Eve December 31
EDSA Revolution Anniversary February 25
Table 12

Ref: https://www.timeanddate.com/holidays/philippines/

47
CHAPTER III

MARKET STUDY

48
Chapter 3

This is the process of gathering and interpreting information about market which
shows the demand and supply trend in the market today. It will be done by the advocate
and will reflect in this chapter. This can be helpful in businesses to strengthen their
position, identify potential threats and opportunities, helps to discover your own and
your competitor’s strengths and weaknesses. It also includes the area in which you
choose to do your business. Surveying is one of the marketing methods that gives
significant and accurate results which helps in our study. We compiled 10 questions for
the survey which comprises of questions like what oil they use, when and how often do
they use a body massage oil, after that the advocate will comport the result of each
question via graph. After all surveys are gathered, the advocate will tally the results per
question and place the certain percentages on a chart or graph.

Objectives of the Study:

1. Identify the consumer response to the company’s product.

2. Know the consumers’ needs and expectations
3. Seek maximum information about the consumer, i.e. the know consumers’ income
range, their location, buying behavior, etc.
4. Supply up-to-date information about market trends, demand and supply position,
etc.
5. To know consumer response
6. To introduce the product into the market
7. To know the limits and weaknesses of proponents product.
8. To promote the product using promotional tools.
9. To know the response of the consumers to the product.
10. Seek maximum information from the consumer.

METHODOLOGY

49
 The UAD partnership’s market study involved a lot of procedures to assess potential
number of customers such as a survey questionnaire comprising of 11 questions, target
market, S.W.O.T analysis, target population. It also involved how it is done and even
data analysis. This study’s purpose is to promote an organic and cost efficient massage
oil with utilizes the benefits of Honey, Peppermint Oil, and Aloe Vera extracts. The
proponents have conducted researches about the benefits of its 3 main products to the
user.

The research started on October 2018 when the proponents discovered great
benefits from different organic materials namely Honey and Aloe Vera for the skin. We
also researched on the best possible way it could be applied to the skin, and not just the
usual areas such as the face. We discovered that peppermint oil too has great benefits
not just intended for relaxation but also for the skin too. Body massaging is the best way
for the product to be applied over most parts of the body. This research was conducted
in the City of San Fernando, in the Province of Pampanga Philippines. The City of San
Fernando is one of the busiest cities in the province of Pampanga due its growing case
of being a business friendly city. Employees around the City of San Fernando works so
hard day in and day out, therefore culminating in stress and the need for relaxation is
considered, either by availing massage service or just a simple essential oil.

The proponents chose a survey research design due to its effectiveness in learning
and acquiring needed information about the study’s target market. Survey research is
used to gather the opinions, beliefs and feelings of groups of individuals, often chosen
for demographic sampling. These demographics include age, gender, ethnicity, income
levels, etc. To find out the possible demand of the product by potential customers, the
proponents used a survey questionnaire to get the opinions, tendencies, and thoughts
of the public, especially the business’s potential target market.

The primary targets of this survey consists of the barangays in the City of San
Fernando namely Brgy. Calulut, Sindalan, Dolores, Bulaon, Maimpis, San Agustin, and
Telabastagan. The target market of this business in these respective barangays are
mostly the people who work and students. Basically people who are stressed. As time
goes on, UAD partnership’s potential for business such as wholesaler potential, as well
50
entering consignment, supplier, sponsorship relations. Product innovation too is a great
possibility as UAD Partnership’s wont be limited to just organic massage oils since there
are many more under utilized organic and raw ingredients with great benefits for the
human body.

The survey questionnaire given will serve as the data gathering method of the business
and results taken from the survey will be evaluated for the purpose of identifying
potential demand and supply for the product.

Survey Form

51
 Colegio De Sebastian

Mac Arthur Highway, San Isidro, San Fernando, Pampanga

Feasibility Study Survey

Name(optional):____________________________________________Gender:______
Occupation:_____________________Age:_______Address_________________________

.Put a check () for your answers:

1) Have you ever experienced massage?

 yes  no

2) Where do you usually avail massage service?

Massage spa Home service  Salon  Self service

3) Do you use body massage oil?

 yes  no

4) How often do you use body massage oil?

 Always  Moderate  Once in a while  Never

5) What type of oil do you use?

 Efficascent oil  Baby oil  White flower  Others (Specify)

_____________________

6) When do you use body massage oil?

 If stressed  During work/ After school hours

 when injured  Others (Specify) ________________________

7) Which characteristics of your oil do you prefer?

Warm Cold None  Others (Specify) ________________

8) What price range do you prefer?

 50-100  100-150  150-200  200-250

9) Where do you usually buy a Body Massage Oil?

 Online Shipping  Mall  Spa/Salon  Others (Specify) ___________

52
10) Do you prefer massage oil made from organic?

 yes  no

11) What’s your mo income?

10k – 30k 30k – 60k 60k – 100k Others (Specify) ___________

RESULTS & DISCUSSION of SURVEYS

1.00%

99.00%

Yes No
1. MA
SSAGE SERVICE EXPERIENCE

Figure 1

53
 Selections Number of Percentage (%) of
Respondents Responses

YES 396 99%

NO 4 1%

Total 400 100%

Table 1

This shows that 99% of the respondents have experienced massage service while 1%
of the respondents have not experienced any massage service yet.

2. LOCATION OF SERVICE

Self Service
15.80%

Salon
7.00% Massage Spa
46.20%

Home Service
31.00%

Massage Spa Home Service Salon Self Service

Figure 2

Selections Number of Percentage (%) of

Respondents Responses

54
 Massage spa 185 46%

Home service 124 31%

Salon 28 7%

Self Service 63 16%

Total 400 100%

Table 2

The table above shows that majority of the respondents usually avail their massage
service at a massage spa with 46.2 %, 31% of the respondents prefer home service,
15.8% prefer Self Service, and the remaining 7% goes to the salon for a massage
service

3. USAGE OF MASSAGE OIL

No

Yes

Yes No

Figure 3

Selections Number of Respondents Percentage (%) of

55
 Responses

YES 368 92%

NO 32 8%

Total 400 100%

Table 3

According to the table, 368 out of 400 respondents have used a body massage oil when
availing a massage service.

4. FREQUENCY OF USE

9.90%

9.90%

46.53%

33.66%

Everyday Once a week Twice a week Once a month

Selections Number of Respondents Percentage (%) of

Responses

Everyday 187 47%

56
 Once a week 134 34%

Twice a week 38 10%

Once a month 41 10%

Total 400 100%

Figure 4
Table 4

The table explicates the frequency of usage of the respondents with 46.8 % using a
body massage oil everyday, 33.5% use it once a week, 9.5% use it twice a week , and
the remaining 10.3% use a body massage oil once a month.
5. TYPE OF OIL USED

8.00%

14.00%

58.00%
20.00%

Efficascent Oil Baby Oil White Flower Others

Figure 5

Selections Number of Respondents Percentage (%) of

Responses

Efficascent Oil 233 58%

Baby Oil 79 20%

57
 White Flower 57 14%

Others 31 8%

Total 400 100%

Table 5

The table shows that the respondents prefer using Efficascent Oil the most while
preferring White Flower the least.
6. TIME OF USAGE

17.39%

9.57%

58.26%
14.78%

If stressed When injured

During work/After school works Others

Selections Number of Respondents Percentage (%) of

Responses

If stressed 268 67%

When injured 69 17%

During work/After 45 11%

school works

Others 18 20%
Figure 6
Table 6

58
This table shows that 67% of the respondents use a body massage oil whenever
stressed, 17.3% use a body massage oil when injured and 11.3% use a body massage
oil during or after work/school and 20% use a body massage oil in other occasions.

7. CHARACTERISTIC OF OIL

17.39%

9.57%

58.26%
14.78%

Warm Cold None Other

Selections Number of Respondents Percentage (%) of

Responses

Warm 250 67%

Cold 117 17.3%

None 17 11.3%

Others 15 20%

Total 400 100%

Figure 7
Table 7

This table shows that 67% of the respondents prefer warm massage oil, 17.3 prefer cold
and 11.3 doesn’t have a preference in oil and 20% prefer other characteristics.

59
8. PRICE RANGE

4.95%
8.91%

49.50%

36.63%

50-100 100-150 150-200 200-250

Figure 8

Selections Number of Respondents Percentage (%) of

Responses

50-100 200 50%

100-150 148 37%

150-200 34 8.5%

200-250 18 4.5%

Total 400 100%

Table 8

This table shows that 50% of respondents are willing to pay 50-100 php for a body
massage oil, 37% are willing to pay 100-150 php, 8.5% are willing to pay 150-200php,
and 4.5% are willing pay 200-250 php for a body massage oil.
9. PLACE OF PURCHASE

60
 5.05%
9.09%

46.46%

39.39%

Online Shipping Mall Spa/Salon Others

Figure 9

Selections Number of Respondents Percentage (%) of

Responses

Online Shipping 183 45.75%

Mall 159 39.75%

Spa/Salon 37 9.25%

Others 21 5.25%

Total 400 100%

Table 9

This table shows that 45.75% of the respondents usually purchase their body massage
oil online. 39.75% prefer purchasing from the mall, 9.25% prefer purchasing from the
spa/salon and 5.25% prefer other terms of buying.
10. PREFERENCE BETWEEN ORGANIC AND NON-ORGANIC

61
 8.00%

92.00%

Yes No

Figure 10

Selections Number of Respondents Percentage (%) of

Responses

Yes 370 92.5%

No 30 7.5%

Total 400 100%

Table 10

This table shows that 370 out of 400 respondents prefer using an organic body
massage oil.

11. MONTHLY INCOME

62
 26.73%

50.50%

7.92%

14.85%

10k-30k 30k-60k 60k-100k Others

Figure 11

Selections Number of Respondents Percentage (%) of

Responses

10k-30k 202 50.5%

30k-60k 59 15%

60k-100k 33 8%

Others 106 27%

Total 400 100%

Table 11

This table shows that 50.5% of the respondents earn 10-30k annually, 26.5% said
others, 14.75% earn 30-60k, and 8.25% earn 60k-100k annually

GENDER / AGE DISTRIBUTION

Male 214
Female 186
TOTAL 400
63
 Table 13

AGE MALE FEMALE

(No. of Respondents) (No. of Respondents)
20 years old 59 51
21 years old 55 49
24 years old 53 39
25 years old 47 45
Table 14

Historical Population in the City of San Fernando, Pampanga:2015

Barangay Population
Calulut 37,741
Sindalan 14,188
Dolores 19,582
Bulaon 24,685
Maimpis 9,441
San Agustin 20,166
Telebastagan 13,009
Table 15

Population Distribution 2014-2018

Barangay 2014 2015 2016 2017 2018

Calulut 28,592 29,224 29,870 30,530 31,205
Sindalan 14,173 14,486 14,806 15,133 15,467
Dolores 19,473 19,903 20,343 20,793 21,252
Bulaon 26,977 27,573 28,182 28,804 29,441
Maimpis 8,872 9,068 9,268 9,473 9,682
San Agustin 18,464 18,872 19,289 19,715 20,151
Telebastagan 11,170 11,417 11,669 11,927 12,191
Total 127,721 130,543 133,427 136,375 139,389

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 Table 16

Note: The population in City of San Fernando Pampanga increasing (2.21%) annually

Projected Population 2019-2023

Year Population
2019 142,469

2020 145,617

2021 148,835

2022 152,124

2023 155,485
Table 17

Note: The population in City of San Fernando Pampanga increasing (2.21%) annually.

Consumption Frequency

Consumption Conversion Per Number of Frequency

Frequency Year Respondents
Everyday 365 187 68,255
Once a week 52 134 6,968
Twice a week 104 38 3,952
Once a month 12 41 492
Total 533 400 ------------------------

65
 Table 18

Note: Frequency of the Demand Analysis was obtained by multiplying Conversion per year to the
Number of Respondents.

Yearly Average Consumption

TOTAL 400
Number of Months 12
Annual Demand 533
The Number of Respondents 400

Average Annual Consumption 1.33

Table 19

Note: Average Annual Consumption was obtained by dividing the Annual Demand to the Number of
Respondents.

Demand and Supply Analysis

The law of supply and demand is one of the most basic economic laws, ties into
almost all economic principles in some way. Supply and demand pull against each other
until the market finds an equilibrium price. However, multiple factors can affect both
supply and demand, causing them to increase or decrease in various ways. Equilibrium
price is a product of demand and supply wherein the quantity of goods supplied is equal
to the quantity of goods demanded. Demand is an economic principle referring to a
consumer’s desire to purchase goods and services and willingness to pay a price for a
specific good or service. Holding all other factors constant, an increase in the price of a
good or service will decrease the quantity demanded, and vice versa. Supply on the
other hand is a fundamental economic concept that describes the total amount of a
specific good or service that is available to consumers. Supply can relate to the amount
available at a specific price or the amount available across a range of prices if displayed

66
on a graph. This relates closely to the demand for a good or service at a specific price;
all else being equal, the supply provided by producers will rise if the price rises because
all firms look to maximize profits.

It is very important for managers to understand the mechanics of supply and

demand both in short-run and long-run. Cause while taking decisions in an organization
managers need to know about the price controls in the market, supply and demand for
the product in market, interdependence and the grains from trade, the relationship
between price and quantity demand consumer surplus, product surplus, Market
efficiency and last but not the least is analyzing changes in equilibrium both in micro
and macroeconomics. The proponents, through survey questionnaires, have
researched and observed the target market. The purpose of the questionnaires is to
gather information about the business’ target market and to identify the demand on
customers, their interest on the product that the business is offering while thorough
studying of supply will give the business some ideas on its possible future share in the
market due to the percentage of unsatisfied demand of a certain product or service
which in turn can be an advantage for price determination.

67
 Projected Demand

Year Population Percentage Target Yearly Annual Demand per

of Target market Average Body Massage Oil
Market Consumption
A B C D E

2019 142,469 92.00% 131,071 1.33 174,325

2020 145,617 93.84% 136,647 1.33 181,741

2021 148,835 95.68% 142,405 1.33 189,399

2022 152,124 97.52% 148,351 1.33 197,307

2023 155,485 99.36% 154,490 1.33 205,472

Table 20

Note: Percentage of target market was based on survey question no. 3 and it increases by 2%
annually.
Target Market was obtained by multiplying the population to the percentage of the target market.
Yearly Average Consumption was computed by Annual Demand divided by the Number of
Respondents.
Annual Demand per Body Massage Oil was obtained by multiplying target market to the yearly
Average Consumption.

Historical Supply

Competitor 2014 2015 2016 2017 2018

68
 s
Efficascent 60,456 61,665 62,898 64,156 65,439
Oil
Baby Oil 43,889 44,767 45,662 46,575 47,507
White 35,110 35,812 36,528 37,258 38,003
Flower
TOTAL 139,455 142,244 145,088 147,989 150,949
Table 21

Note: The proponents projected 2% increased annually

Projected Supply

Competitors 2019 2020 2021 2022 2023

Efficascent Oil 66,748 68,083 69,445 70,834 72,251

Baby Oil 48,457 49,426 50,415 51,423 52,451
White Flower 38,763 39,538 40,329 41,136 41,959
TOTAL 153,938 157,047 160,189 163,393 166,661
Table 22

Note: The proponents projected 2% increased annually.

Supply Analysis

Supply Analysis (2019)

Competitors Massage oil per Monthly Supply in Annual Supply in

Week Pieces Massage Oil
Efficascent Oil 500,000 15,000,000 180,000,000
Baby Oil 30,000 900,000 10,800,000
White Flower 300,000 9,000,000 108,000,000
TOTAL: 830,000 24,900,000 298,800,000
Table 23

69
Note: In this analysis, the proponents get the weekly supply of the competitors, multiply it to the number
of days in a month and multiply it to the number of months in a year

Demand-Supply Gap Analysis

Year Demand (per Supply Gap Percentage

Massage Oil) (Massage Oil) Unsatisfied
(A) (B) (C) (D)
2019 174,325 153,938 20,387 11.69%
2020 181,741 157,047 24,694 13.59%
2021 189,399 160,189 29,210 15.42%
2022 197,307 163,393 33,914 17.19%
2023 205,472 166,661 38,811 18.89%
TOTAL 984,835 801,228 147,016 77%

Table 24

Note: Demand (per Massage Oil) came from the Annual Demand per Massage oil.
Supply (Massage Oil) came from the Total of the Projected Supply.
Gap was obtained by Demand minus Supply.
Percentage Unsatisfied was obtained by Gap divided by the Demand then multiply by 100.

Projected Sales

Company AHM Body Monthly Supply Annual Supply in

Massage Oil per in Pieces Massage Oil
week
(A) (B) (C)
AHM Body 2,100 8,400 100,800
Massage Oil
Table 25

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Note: AHM Body Massage Oil per week was obtained by AHM Body Massage Oil producing 300 bottles
per day multiplied by 7 days
Monthly Supply in Pieces was obtained by AHM Body Massage Oil per week divided by 7 days
( 1 week), then multiplied by 30 days ( 1 month).
Annual Supply in Massage Oil was obtained by Monthly Supply in Pieces multiplied by 12 months
(a year).

Projected Sales (Bottles)

Company 2019 2020 2021 2022 2023

AHM Body 100,800 102,816 104,872 106,969 109,108
Massage Oil
Table 26

Note: The Projected Sales was increasing 2% annually.

Company Daily Produce Massage Oil

UAD Partnership 300
Table 27

Projected Market Share

Competitors Production Capacity Percentage of Market

(Supply Analysis) Share
(A) (B)
Efficascent Oil 66,748 43%
Baby Oil 48,457 32%
White Flower 38,763 25%
TOTAL: 153,938 100%
Table 28

Note: Percentage of Market Share was obtained by Production Capacity divided by the Total, then
multiply by 100.

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 Projected Annual Cost of Delivery

Year Weekly Annually

2019 ₱ 1,806.00 ₱ 3,096.00
2020 ₱ 1,806.00 ₱ 3,096.00
2021 ₱ 1,806.00 ₱ 3,096.00
2022 ₱ 1,806.00 ₱ 3,096.00
2023 ₱ 1,806.00 ₱ 3,096.00
Table 29

Note: Occurrence is based on demand of products.

Rate depends on the weight per delivery
Delivery cost is based on JRS Expres
Ref: http://www.jrs-express.com/Home/Rates?Length=4

Marketing Study

Marketing isn’t simply an important part of business activities or business success, it

is the business. As Mark Cuban, the owner of the 2011 NBA Champion Dallas
mavericks and several media and entertainment companies once said succinctly:” No
Sales, No Company “.

Marketing is everything associated with selling your company’;s products and

services. Marketing includes advertising which is the most common marketing activity,
consumer research which matches your product to consumer wants and needs, and
also product design which helps match your company’s product and services to known
customer needs. There are a vast array of marketing activities to choose from such as
the ones mentioned and all it takes is careful and effective planning and strategy.

Marketing Strategy is a business’s overall game plan for reaching people and
turning them into customers of the product or service that the business provides. It’s a
long- term and forward - looking approaches to planning. Their fundamental goal,

72
marketing planning and marketing strategy, is to achieve a competitive advantage in the
market. It goes side by side with the market research/ study since it is about
understanding your competition and target market and other factors that will impact your
ability to reach and entice people to your business. Once research is achieved, Neil
Borden’s idea and concept of the Seven P’s of marketing mix namely Product, Process,
Price, Physical Evidence, Place, Promotion, and People may be executed. The
marketing mix is a significant tool for creating the right marketing strategy and its
implementation through effective tactics. The assessment of the roles of the elements
included plays a vital part in the overall marketing approach. All in all this study covers
all the marketing aspects of the business.

Objectives of the Study:

 To introduce to the target market the proposed product/ service including product
category, quality, packaging, labelling, tagline, and the logo.

 Identify the company’s marketing plans and strategies.

 Identify consumer response to the company’s product.

 Estimate the cost of marketing goods and services.

 To determine the place or ways of distribution of the product.

 To determine proper pricing policy and identify the pricing strategies with regards to
the product.

 Supply relevant information to customers.

Marketing Plans and Programs

73
AHM Body Massage Oil

The name of our product (AHM Body massage oil) is an abbreviation of our 3
main products which are Aloe Vera, Honey, and Mint. Aloe Vera extracts helps with
sunburn through its powerful healing activity at the epithelial level of the skin, a layer of
cells that cover the body. It also helps moisturizes the skin without giving it a greasy
feel, so it`s perfect for anyone with an oily skin complexion. Honey adds a touch of
natural glow on the face and skin which tops the chart. It also helps exfoliate your face
& skin by gently removing the dead skin cells. This in turn also leaves your face with a
brighter complexion. Mint or Peppermint to be exact, may relieve digestive symptoms,
such as gas, bloating and indigestion. Mint or peppermint acts as a muscle relaxant and
pain reliever, it may diminish certain types of headaches.

Proposed Product

The UAD partnership was established in October of 2019, a manufacturing business

owned by John Paul P. Gonzalez, Maria Angelica Fernicol, John Fernando Castor,
Dominico Canlas, Marjorie Sunga, and Vrigitte Garcia with a general partnership form of
organization. The partners’ purpose in creating the UAD partnership, entering the
market, and establishing a business is to promote wellness and relaxation through the
utilization of raw and organic materials. UAD partnership as of now does not have any
other product offerings because it’s a starting business and can only offer one product,
one product that could be a remedy for hard working filipinos specifically those residing
in the San Fernando area and potentially in the region of Pampanga, Philippines.

Filipinos are known to be hard workers and it’s somehow natural for them to
constantly burn the midnight oil. For millenials, nowadays burning the midnight oil for
them is through social media posts, tweets, stories, selfies, etc. All in all, stress is a
common and rampant thing these days which in turn contributes to mental health issues
and also physical. UAD partnership came up with an idea for a remedy for stressed and
occupied people at just at the reach of their fingers.

74
 The remedy is in the form of a body massage oil made from organic raw materials.
The AHM body body massage oil is the debut product of the UAD partnership, a body
massage oil with the benefits of honey, peppermint, and aloe vera. It’s a body massage
oil that fractures added benefits of honey and aloe vera and not just for the purpose of
massage and relaxation alone. Aside from the therapeutic scent it gives, it can also be a
counter measure against mosquitoes, treatment for sunburns, ointment for allergic
reactions, etc. It’s price is affordable and competitive compared to other products of the
same kind. Since the business has just started, the price of the product is justifiable to
its potential customers and target market. As the business was born in the City of San
Fernando, Pampanga, a growing and busy city, the partners wanted to provide a hand
held remedy for stress, which may open up the door to potential discovery and
utilization of great organic materials.

Product

Product Category

Product Category is a type of product or service. Product Categories are typically

created by a firm or industry organization to organize products.

AHM Body massage oil is an essential oil which falls under the category “Unsought
Products” as the product is just an item which is new and the customers aren’t aware of
the its existence. Unsought products have to be deliberately introduced to the
customer/consumer, who might otherwise remain unaware of them. For now it falls
under unsought products but as time passes, it can potentially be categorized under
“shopping products” as customers might compare AHM body massage oil to different
products of the same kind.

Quality

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 In business, or in this case, manufacturing, quality is a measure of excellence or a
state of being free from defects, deficiencies and significant variations. It is brought
about by strict and consistent commitment to certain standards that achieve uniformity
of a product in order to satisfy specific customer or user requirements

The UAD partnership maintains its standard of quality through every aspect of
manufacturing AHM body massage oil, from its birth, until it reaches the grasp of our
customers. Every ingredient namely the Peppermint oil, Formula B, Honey, and Aloe
Vera is stored safely in the storage room with the temperature carefully maintained and
checked to ensure that the ingredients are ready to be used at all times. Production
area is designed in a circulatory way to avoid labor traffic with the utensils placed in the
middle for easy grasp and the process of the manufacturing of the products will be
consistent as the design of the area is conceptually a cycle. The procedures, processes,
and steps is researched thoroughly for the consistency in between products and will be
checked with extreme caution by the production officer every time during the 10- day
production period. Meanwhile, for the safety, health, and well-being of the workers,
proper production and safety attire such as gas masks, as the scent of the peppermint
is strong scented as well the Formula B and Aloe Vera, also disposable gloves to avoid
comprising the ingredients and the spread of bacteria, will be worn at all times.

Stock

The UAD partnership will take the mass production approach, basically
manufacturing and producing large amounts of standardized products. The production
period of AHM body massage oil is basically 10 days and in that 10 days the production
team will be aiming for 297.14 Liters or 297,140 ml of AHM body massage oil which
amounts to 2090 bottles at minimum per production period. The UAD partnership will be
ensuring the addition and stocking of at least 50-100 bottles for the availability of the
product to cater the demands of customers and satisfy them.

76
Packaging

Safety of our customers is one of our top priority along with their satisfaction. Glass
packaging among oils tend to be risky as they are a fragile type of packaging and
customers with children in their household are really clumsy and might cause accidents.
The AHM body massage oil’s packaging is a bottle made of plastic with a flip top cap to
avoid such said accidents or potential accidents to occur in consumer’s household or
daily activity. It’s easy to hold as it is hand held and easy access too since it fits well
inside of your pockets or bag. The bottle comes with different sizes namely 60ml, 100ml,
120ml, and 200ml bottles. For delivery purposes, the bundles are covered with bubble
wraps for the products’ safety when delivered.

Labeling

A product’s label is used for the product’s identification. It enhances the product’s
packaging for the promotion of the product. Labeling also helps to provide information
about a product to the prospective customers.

UAD partnership’s label for the AHM body massage oil’s bottles provides different
information and knowledge regarding the product which basically includes instructions.
Safety precautions, and the product’s benefits to the user.

 Product Logo - Works together with the label as it is the 1 st thing seen in the label.
It is the symbolic identifier of your product and for your company.

 Instructions - States the necessary information regarding right the usage of the
product for best results.

 Safety Precautions - are also types of instructions which informs and warns the
user of what to avoid, where to properly store the product, and the care that should
be taken.

77
 Manufacturing Information - contains brief information about the company and
also includes where the product is being produced and when it is produced. It can
function as a promotional tool not only for the product but for the company as well.

Process

Process is something constant and ever present in business. It is a sequence of

inter dependent and linked procedures which, at every stage, consume one or more
resources to convert inputs into outputs. These outputs then serve as inputs for the next
stage until a known goal or end result is reached.

The Manufacturing Process is the center of the business. For 10 days of the
mass production period, in this part the process flow chart, production methods used,
and the production schedule, and estimated time of production is clearly observed. The
manufacturing process is comprised of 6 steps namely the following:

 Preparation Phase

In this phase, all the necessary ingredients, utensils, and packaging will be
prepared.

 Blending Phase

This phase of the manufacturing process is specifically needed for the Aloe Vera
extract.

 Mixing Phase

When all the raw materials have been measured carefully and accurately to the right
specified ratio, they are to be mixed together.

 Bottling and Packaging Phase

78
 The produced oil will now be bottled into the different bottles, designated specifically
depending on the quota

 Cleaning and Sanitation

Promoting health, safety, and waste management all starts inside the production
area. In this phase, since the utensils used each day of production is just limited, it’s a
necessity to keep them clean after production.

 Preparation for delivery

Finished products will be either stored or prepared for pick up or delivery to start
distribution to consumers/buyers.

The UAD partnership also collaborated with JRS express for one of its major
ways of distributing the product which is door to door deliveries of the AHM body
massage oil to customers who ordered online. Orders that are received online and
inputted in a software given by JRS express. Once the orders have been inputted, JRS
express will deliver the scheduled products to the customers who ordered the product.

Tagline

“Relax, Renew, Revive”

The tagline chosen speaks about how our product encourages our consumers to
relax and take a deep breath from a long day, let the oil flow along your skin and renew
you, and in the end you will be new and revived. “Relax, Renew, Revive”

It explains the rush and the sensation felt when the product is applied on your
body. It enables us to feel renewed. Consumers will appreciate the pureness of the
product as everything is natural and each material has extremely great benefits to the
consumer’s skin and body.

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Trademark/Logo

Figure 3

The proponents decided to brand the product “AHM Body Massage Oil” because
of the sensation a customer can get when you put the body massage oil into your skin.
The sensation is about the customer’s reaction whenever they are satisfied. “AHM Body
Massage Oil” is made up of organic materials specifically aloe vera, honey and
peppermint. That is why “AHM Body Massage Oil” can relieve your stress and
refreshment due to its main ingredients which includes honey, a material that also
relieves depression.

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Company Uniform

Figure 4

Price

Setting price is not an exact science. Pricing approcaches commonly found in

practice inclued (1) Pricing to maximize profits, (2) pricing to achieve a desired return on
capital employed, (3) pricing based on differential costs, (4) pricing based on standard
costs, and (5) target pricing.

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 New Product Pricing Strategies

 Market Skimming Pricing - proponents of the market value method often argues
that the market value of any product is, to some extent, a manifestation of the
cost incurred in its production. The contention is that if one product sells for
more than another, it is because more cost was expended to produse it, in other
words, were it not for such a cost, a sales value would not exist.

 Market Penetration Pricing - pricing a products needs a first step to introduce to

the market, thus, needs to be held for public notice that such product seems to
be acceptable in terms of its pricing towards the economic value that it gives for
consumer.

 Cost-based Pricing Strategy

 Cost based pricing is used to make simplicity for pricing the products. The
proponents of this study sets as initial pricing using the Cost-plus pricing, which
is set at twenty five (25%) percent mark-up. The cost is being used as starting
point and adding a 25% mark-ups to set the introductory price. It also
understood that such adoption of pricing includes the transfer price for
allocation.

 Break-even Pricing is a method in which cost and revenue are equal and at this
point there is neither a profit nor a loss. This feasibility adopts such method only
when a desired strategy to introduce and economically sustain its on-going
transaction at its lowest market.

 Target pricing is being designed by the proponents to create a competitive

advantage, which prices the product as if its market share were larger than it
actually is and as if its costs were less than they actually are. However, this
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 method is not being adopted for the first year of operation, for it might sacrifice
some aspect of product pricing skimming.

 Value-based Pricing Strategy

Value-based pricing does not support the product of the proponent, for such
product has yet to reach the direct consumer on its actual effect and consumer
preference. Such pricing is so difficult to designed and to formulate, and needs an
additional research and survey.

Those above are some examples of pricing strategies but for the UAD
partnership, we chose a cost based pricing for the prices of its product. As a starting
business we cannot just make our mark on the market by coming up with non -
justifiable prices. We accurately computed for each bottles prices right from the raw
materials used each bottle which makes the price justifiable.

Physical Evidence

Services are intangible in business specifically in marketing. Customers tend to rely

on physical cues or physical evidence with their judgement to help them evaluate a
product before purchasing it. Physical evidence is the material part of a service.

The UAD partnership’s debut product AHM body massage oil comes with different
size bottles. The bottle sizes are 60ml, 100ml, 120ml, 200ml, and are dark brown plastic
bottles with white flip top bottle caps covered with a sticker and in that sticker is the
product’s logo with the company’s brand and labels that goes with it.

The oil is mostly comprised mostly of peppermint oil for its slippery yet warm feel to the
user, the scent is strong yet fragrant and relaxing which adds more to its therapeutic
characteristics.

Place of Distribution

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 In the marketing mix, the process of moving products from the producer to the
intended user is called place. In other words, it is how your product is bought and where
it is bought. This movement could be through a combination of intermediaries such as
distributors, wholesalers and retailers. In addition, a newer method is the internet which
itself is a marketplace now.

The UAD partnership is located at Brgy. Telabastagan. Strategically located near the
boundary of Angeles City and City of San Fernando Pampanga. With the location in
between 2 busy and developing cities in Pampanga, chances of the business of
reaching out to its target market of busy and hard working people such as call center
agents, students, office employees, and the like are high.

A distribution channel can be defined as the activities and processes required to

move a product from the producer to the consumer. Also included in the channel are the
intermediaries that are involved in this movement in any capacity. These intermediaries
are third party companies that act as wholesalers, transporters, retailers and provide
warehouse facilities. The UAD partnership will be using a direct channel distribution.

 Direct Channel Distribution

A direct channel of distribution defines a condition in which the producer sells a

product to a consumer directly, without any assistance from any of the intermediaries. In
case of a direct chain of distribution there can be computer sales or mail order or face-
to-face sales but there can’t be any sort of distributor except the original producer.

The UAD partnership will be using a direct channel distribution since it sells directly
to customers without the help of intermediaries like wholesalers or retailers. Aside from
front door method of collection where the customers can directly avail the product at the
production location itself, either pick up or purchase. The partnership also has its own
delivery vehicle and the driver will directly deliver the ordered products but for deliveries

84
that the delivery vehicle cant accommodate, collaboration with JRS express is the back
up option which also widens the area of delivery for the product.

Distribution Strategy

UAD PARTNERSHIP Customers

Figure 5

Promotions

Promotion is the marketing term used to describe all marketing communications

activities. Promotion is the element of the marketing mix which is entirely responsible for
communicating the marketing proposition. Marketers work hard to create a unique
marketing proposition for their product or service. It helps keep the customers informed
about whatever new updates that the products or services are available or released.
Since the UAD partnership is a new business, making its existence known will be tricky
but simple.

 Social Media Advertising

In our modern day where technology is a big part of our lifestyle, social media is
everywhere. One post in your facebook, instagram, twitter, and the like will always be
noticed. In marketing, It is cost efficient as it only requires a few minutes of time to post
a product. The transactions all occur through online orders via direct messaging to
facebook, or instagram, as a page of the partnership displaying the product and the
product’s description.

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 Personal Selling

Personal selling is also known as face-to-face selling in which one person who is
the salesman tries to convince the customer in buying a product. It is a promotional
method by which the salesperson uses his or her skills and abilities in an attempt to
make a sale. As the UAD partnership is just a starting business, of course its 1 st
customers would be people who are friends with the people in the partnership. As word
of mouth is the best way to spread information about something, either a product or
service, spreading the word about the existence of AHM body massage oil will be cost
efficient yet effective.

 Banners/ Tarpaulins

As the business is located near the highway, posting a banner or a tarpaulin where
the address of the production location is posted and the product offers will also help in
the promotion of the product.

People

People are the most important element of any service or experience. Services tend
to be produced and consumed at the same moment, and aspects of the customer
experience are altered to meet the individual needs of the person consuming it. In this
element of the marketing mix, It includes everyone who is involved in the product or
service whether directly or indirectly. Not all of these people get in touch with the
customers. All these people have their own roles to play in the production, marketing,
distribution, and delivery of the products and services to the customers.

86
 For the people inside the UAD partnership, we ensure that the hiring of these
people is well thought of as it is what the business. From management, to the
production workers, up to the delivery driver, their hiring has been well invested which in
turn will be worth it represented by their performance each day. Promotions bring the
product to the customers and the UAD partnership are creative yet simple with their
promotions towards making people notice the existence of the AHM body massage oil.
The people in the marketing team are not only thinking about the present but also the
future of the business which also includes ideas for new innovations for products. They
are responsible for building the substantial customer base for the business to be more
profitable.

A product is nothing without the customer service and customers love that in a
business. The UAD partnership is a starting business that’s why it has its head down on
the ground still learning from day to day processes when it comes to business. Having a
head down on the ground is an advantage for the UAD partnership as it allows
customers to be comfortable with the people of the partnership. This will open up doors
to connections for the promotion of the product such as trade fairs. The UAD
partnership ensures that the people who will talk for the partnership and for the product
are well trained in the line of communication and knows the product inside and out.

It goes without saying that people definitely have an impact on the overall
customer experience. In the realm of marketing, giving customers nothing but the best
experience in using their products and dealing with their people is the key to gaining
more new customers and keeping more of the existing customers.

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CHAPTER IV
88
 TECHNICAL STUDY

Chapter 4

Once the market has been identified and the promotional mixes carefully planned
and assessed, we can now move on to how the business will intend to deliver a product
or service. A technical feasibility study assesses the details of how you intend to deliver
a product or service to customers. Think materials, labor, transportation, where your
business will be located, and the technology that will be necessary to bring all this
together. It's the logistical or tactical plan of how your business will produce, store,
deliver, and track its products or services. This needs to be conducted necessarily for
the business in order to identify whether the processes proposed is capable of the

89
desired standard of quality level yet cost efficient. Every detail counts, namely the
infrastructure, capital, system of delivery.

This chapter includes all the materials and supplies, equipment, facilities, and the
technology involved. The proponents will discuss the manufacturing process of the
product, production schedule, layout of the plant, waste disposal methods that are
essential in establishing a business. There is also the cost involved in the processes
that will be discussed that is a big part in the capital costing. Maximizing the profits is
the top priority of every business established day in and day out. This study will help the
proponents allocate resources to produce the desired yet best quality product at a cost
efficient method.

Objectives of the Study:

 To provide a detailed manufacturing process for the proposed product.

 To identify all the raw materials used, supplies, machineries, and equipments, and
costing needed in the production and operation .

 To discuss the plant layout and plant size and identify the plant location.

 Discuss and develop methods on how to properly manage the waste disposal
process of the business.

 To be able to know the entire production cost of the operation.

 To identify the manpower involved and the direct labor requirements necessary in
the production process of the business.

Product Description and its Uses

UAD partnership’s purpose in establishing a business is to promote health and well

- being in all aspects through organic products. The debut product of the UAD

90
partnership is an organic body massage oil known as the AHM body massage oil. The
proponents came up with AHM since its the abbreviation of the product’s 3 main
materials namely, Aloe Vera, Peppermint, and Honey. Unlike other essential oils, AHM
body massage oil isn’t mostly made up of added chemicals, it’s mostly comprised of
organic materials which makes its benefits to the body better and more natural. AHM
body massage oil is a kind of essential oil which is an ideal remedy for on the go stress
relieving, suitable for people who can’t find time to relax and just work. What makes the
AHM body massage oil different from the others is that it has characteristics and
benefits from it’s 3 main raw materials. It has added benefits from honey, it has added
benefits of peppermint, and added benefits from aloe vera, making it even more
beneficial to the user.

Day by day people become more and more stressed with the things they do each
day sometimes not minding their own health. The business wants to ease that stress
throughout the population to encourage health and wellness. The customers,
specifically the target market will be informed of the main purpose of the business
through the partnership’s mission and vision statements and marketing mix which will
be an added factor in persuading them to purchase our product.

Raw Materials and Supplies

AHM body massage oil is an essential oil made up of honey, aloe vera, and
peppermint. Each raw material is packed 1 liter each. When processed, the oil is placed
inside a plastic bottle as it is practical to use plastic bottles instead of glass bottles to
avoid accidents plus it’s cost efficient and recyclable.

Raw Materials

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 Aloe vera (/ˈæloʊiː/ or /ˈæloʊ/) is a
succulent plant species of the genus
Aloe..
It is found in many consumer products
including beverages, skin lotion,
cosmetics, or ointments for minor burns
Aloe Vera Plant and Extract
and sunburns.

Honey is a sweet, viscous substance

produced by bees and some related
insects.

Honey

The herb peppermint, a natural cross

between two types of mint (water mint
and spearmint) and is a common
flavoring agent in foods, and peppermint
Peppermint Oil oil is used to create a pleasant fragrance
in soaps and cosmetics.
Table 30

Suppliers

Raw Materials and Suppliers Location

Supplies
Honey Nature’s Joy Apiary Balibago, Angeles City
Peppermint Nature’s Joy Apiary Balibago, Angeles City

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 Aloe Vera Farm San Miguel Magalang,
Pampanga

Bottles (60ml, 100ml, Divisoria Divisoria

120ml, 200ml)
Formula B Confidential (Secret Confidential (Secret
Ingredient) Ingredient)
Table 31

Manufacturing Process

The Manufacturing Process is the center of the business. In this part, process
flow chart, production methods used, and the production schedule, and estimated time
of production is clearly observed.

93
 A l t h e n e c e s s a r y i n g r e d ie n t s , u t e n s il s , a n d p a c k a g i n g w i l b e p r e p a r e d

T h e A l o e v e r a e x t r a c t w il b e p l a c e d i n a b l e n d e r f o r l i q u if i c a t io n

T h e r a w m a t e r i a l s , a f t e r c a r e f u l y m e a s u r e d a r e t o b e m ix e d t o g e t h e r t o p r o d u c e t h e A H M b o d y m a s s a g e o i l

A l t h e n e c e s s a r y i n g r e d ie n t s , u t e n s il s , a n d p a c k a g i n g w i l b e p r e p a r e d

T h e p r o d u c e d o il w i l n o w b e p l a c e d i n d if e r e n t s i z e d b o t l e s ( 6 0 m l , 1 0 0 m l , 1 2 0 m l , a n d 2 0 0 m l ) d e p e n d i n g o n t h e q u o t a

T h e p r o d u c e d o il w i l n o w b e p l a c e d i n d if e r e n t s i z e d b o t l e s ( 6 0 m l , 1 0 0 m l , 1 2 0 m l , a n d 2 0 0 m l ) d e p e n d i n g o n t h e q u o t a

Figure 6

MASS PRODUCTION

The proponent of UAD determines the process of manufacturing method by applying

the “mass production” method. Mass Production is a means of production by large

94
volume or multiple quantity of items/units. This method of manufacturing lessens the
time to produce certain production.

The method applied for every production involves using a minimum volume of the
following:

1. 202.11 Litres of Formula O;

2. 11.79 Litres of Honey;
3. 41.27 Litres of Peppermint;
4. 37.89 Litres of Aloe Vera

The mass production for the above mixtures can produce 293.06 Litres

293.06 Litres amount to 293,060 ml:

PACKAGING PHASE (bottling phase)

This phase will be applied for the 293.06 litres of finished products for packaging into
different sizes of bottles as follows:

1. 60 ml bottles – 6% = 293 bottles

2. 100 ml bottles – 12% = 352 bottles
3. 120 ml bottles – 22% = 537 bottles
4. 200 ml bottles – 60% = 879 bottles

Total of 2,061 bottles of target production

Alternative Process

Mainly the processes have been planned out and ready to be executed day in
and day out but of course commonly in any business, there should always be
contingencies whenever problems, big or small arises.The AHM body massage oil is

95
comprised of 3 main raw materials. These 3 raw materials are stored in the storage
room situated in the corner of the plant layout. Since the materials are raw and organic,
the storage room temperature has to be adequate or the materials will react differently.
The Philippines is located near the equator which makes the country tropical and hot, as
a contingency plan for its very hot temperature during the dry or summer season,
ventilation will be checked thoroughly to keep the appropriate room temperature for the
raw materials. Another problem in the business would be power outages. Electricity is
used during the blending process of the aloe vera extracts. The production team can
handle the power outage and can just mix or blend the aloe vera extracts manually. The
business will always keep in mind the stocks so that whenever a shortage of supplies is
incoming, the production team will inform the managers immediately. In business, it
never hurts to always have a contingency plan.

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 Daily Schedule of Employees

Table 32

Note: Break time starts at 12 noon – 1pm

Rules and Regulation of Delivery

Product orders will be set at a minimum amount of Php 500.00 per customers. Orders
placed before 9:00 A.M. will be delivered within the day, beyond the time designated will
be for the next delivery day.

Cash on Delivery (COD) will be implemented to all social media and phones calls order
and delivery charges will be on the account of the customer.

97
Bottles will be thoroughly checked, wrapped with bubble wrap and are boxed before
leaving the facility, any damages will be caused by the courier

No Cancellation of Orders

 Orders will be verified via phone call at least 1 day before or on delivery itself to
notify the buyer and to know if buyer is ready.
Plant Location

Plant Location will be located at Holy Angel Village, Brgy Telabastagan, City of
San Fernando Pampanga. The location of the plant can be easily found as it is located
almost along Mcarthur highway, strategically it offers speedy deliveries due to Mcarthur
highway and it is also located near the border of San Fernando and Angeles City which
means there’s potential customers from Angeles City as well.

98
 Pla
Mcarthur Highway
nt
Lo
cati
on

Figure 7

Plant Layout

This proposed Plant Layout for the production area maximizes the entire floor
area in which workers can move freely while moving from one work station to another
with ease. The idea was to ease up on the movement when getting from the storage,
preparing the materials needed, up to the cleaning and sanitation. Also the utensils area
is placed in the center of it all for easy and quick access when needed.

99
 6. 5

1
7. 4.

8 . 3
2.

Figure 8

Storage Room

It is where all the raw ingredients from the suppliers are brought to. Its
dimensions are 2m x 3m with over head cabinets for the supply of Formula B, aloe vera
and honey and a spacious flooring for where the peppermint oil bottles will be placed.
Since it is stored in just a single area, inventory will be easier to analyze.

Storage Cabinets

100
 Located just outside of the storage room, it is utilized for the storage of the
product’s bottles. With a height of 3m and a length of 2m, it can be used to store a lot of
bottles which is advantageous for the production as it may lessen the cost of availing
more and more bottles in the long run.

Preparation Table

The preparation table will be utilized for the extraction of the aloe vera juice from
the leaves of the aloe vera. Its primary purpose is to have all the main ingredients of
the product be prepared for the production process

Boiling Area

Boiling Area is located next to the preparation table since after the extraction of
the aloe vera, the utensils used must be sterilized as the aloe vera extract is prone to
bacteria, it will be boiled for a certain amount of time, roughly 1-2mins.

Preparation and Mixing Area

This is where all the ingredients of the body massage oil will be mixed and
blended together to form the AHM body massage oil. In this area, the ingredients and
the bottles will be placed, with a length of 4m, it has enough capacity to accommodate
numerous ingredients to save time in taking ingredients from the storage area.

101
Bottling and Packaging Area

102
 Once the ingredients are all mixed and blended together, the oil will now be
bottled and packaged to be prepared for delivery in the preparation for delivery area.

103
104
Cleaning and Sanitizing Area

105
 Once production is finished, all production workers area required to clean and
sanitize the utensils used and in case of injuries like wounds or cuts, they can wash it
here.

106
Preparation for Delivery Area

107
 The preparation for delivery area is where all the finished products will be placed
and prepared. The finished products will be wrapped according to the required ml per
delivery as the business only entertains orders in bundles. It is located near the
entrance of the production area, which is also near the garage of the delivery car.

108
Machineries and Equipment

109
Production Equipment

110
 Name of the Equipment Estimated Quantity Unit Cost Total Cost
Life Span
Heavy Duty Blender 5 years 2 pcs ₱ 3,000.00 ₱ 6,000.00

Mixing Bowl 5 years 6 pcs ₱ 150.00 ₱ 900.00

Measuring spoons/ cup

5 years 5 pcs ₱50.00 ₱250.00

Chopping Board
5 years 3 pcs ₱150.00 ₱450.00

Disposable gloves
Disposable 1 box ₱150.00 ₱150.00
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 Table 33

Store Equipment

Name of the Equipment Estimated Quantity Unit Cost Total Cost

Life Span

Computer Set 5 years 1 ₱16,000.00 ₱16,000.00

Laptop (Asus) 5 years 1 ₱18,000.00 ₱18,000.00

Printer (HP) 5 years 1 ₱7,500.00 ₱7,500.00

Table 34

Delivery Equipment

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 Table 35
Name of the Equipment Estimated Quantity Unit Cost Total Cost
Life Span
Mazda 2010 5 years 1 ₱150,000.00 ₱150,000.00

Waste Disposal

Waste management is the process of treating solid wastes and offers variety of
solutions for recycling items that don’t belong to trash. It is about how garbage can be
used as a valuable resource. Waste management is something that each and every
household and business owner in the world needs. Waste management disposes of the
products and substances that you have use in a safe and efficient manner. proper waste
management is to protect the environment and for the health and safety of the
population. Certain types of waste can be hazardous and can pollute the environment.
Bad waste management practices can also cause land and air pollution which can result
in serious medical conditions in humans and animals. Implementing good waste
management practices not only helps to protect the environment but can be beneficial
to your business.

The UAD partnership especially its production management is strict about the
cleanliness of its workplace. The workers will be well informed and be reminded each
day of proper waste management. Proper waste management will promote health and

113
wellness of the workers which in turn will make them more productive in their work.
Some methods are used by the UAD partnership.

 Segregation of waste - The UAD partnership will apply the practice of proper
segregation waste. Wastes are divided into five categories namely the solid, wet,
dry, biodegradable, and non - bio degradable.Solid wastes are any kind of garbage
coming households, factories or hospitals come under waste. Wet waste are any
dissolved liquid based waste or sludge coming from wastewater plants, households,
etc come under wet waste. Dry wastes are waste which isn’t dissolved in any form
or in liquid form come under dry wastes. Examples such as plastics, bottles, etc will
come under dry waste. Biodegradable wastes are any organic material that can be
synthesized into carbon dioxide, water, methane or organic molecules by organisms
in the soil come under biodegradable waste, and non biodegradable wastes are any
material that cannot be synthesized into CO2, water or CH4 come under non-
biodegradable waste. The plastics used in the production will be segregated
properly for the garbage truck when it arrives in the morning. The aloe vera leaves
left after extraction will be sorted out as it is considered biodegradable and organic.
Since it’s organic and can be decomposed, the leaves can be utilized as fertilizers
since it can be buried. The 3 R’s namely the reduce, reuse, and recycle categories
will be considered too. The AHM body massage oil’s bottle is made of plastic with a
white tip flip cap, washable after use and reusable when the oil itself has been used
up. Proper segregation of waste is an ordinance of the City of San Fernando
Pampanga.

CLAY GO Policy - The UAD partnership will be implementing the CLAY GO Policy
which means Clean As You Go. Employers and employees, especially those who are in
the production area will be reminded of the proper waste management before they
leave the premises. Everyday, everyone will collect the wastes in the aftermath of the

114
production and will put it in the proper designated place making it easier for the garbage
man to collect the waste.

Utilities

The nature and size of an organization and business will determine the utilities
needed. Most businesses need utility to provide the people working in the organization
the standard and comfortable ambiance in their working area. Some of these standard
utilities are used by the UAD partnership.

 Electricity - is one of the basic necessities in the modern day. A home needs light
and power for the benefits of those who live inside it. Like in the business, a
business needs electricity to function and not just for the comfortability of its
workers. Manufacturing companies need electricity for their machineries to function,
without electricity the production will be greatly affected and most of all delayed. The
UAD partnership needs electricity for its production of the AHM body massage oil as
the blending process requires electricity for it to function. It is also necessary for the
lighting and for the ventilation like electric fans. The business is situated in the
confines of one of the partner’s home which is connected directly to the AEC also
known as Angeles Electric Corporation and the business will pay its percentage of
the electric consumption since it requires little electricity for its production. A fixed
cost of Php 500 will be alloted to its consumption since its in a home location.

 Water - Like electricity, water is arguably the most important among the basic needs
in the modern day. In business, especially in the manufacturing one, water is
needed for cleaning up the utensils used in the production. The UAD partnership
needs water for its cleaning up process in the production which is a daily need. Like
the electricity, the home of one of the partners is connected to a water district
namely the Teresa Waterworks. Inc. and a fixed cost of Php 300 will be allotted
since its located in a home.

115
 Communications - As the world today we became more advance and more into the
benefits of technology and one of those benefits is communications. We became
more and more inclined to the internet as our main communication medium and the
hardware used mostly is the phone. For the UAD partnership, we take orders mainly
through online transactions which also includes inquiries, feed backs, comments,
and suggestions from customers. The home connection which is converge will be
the primary source of internet for the UAD partnership which also applies to the
WIFI connection. The fixed cost will be Php. 1,200.

Direct Labor Requirement

UAD Partnership needs full-time employees for the organization to operate

effectively and efficiently to provide cutting-edge services to the customers as
customers are the life blood of any business organization. These people are the ones
responsible for the following positions:

General Manager 1
Production/Operations Officer 1
Finance/Marketing Officer 1
Production Worker/Driver 3

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 Table 36

From day one these people who are hired and joined the organization will be fully
committed to not just the production of one product but also to the development of the
organization itself. Their ideas will be heard and somehow considered as there are
many voices in the organization and not just the managers.

CHAPTER V
117
 FINANCIAL STUDY

Chapter 5

The viability of any undertaking can only be measured in terms of value

translated in money or functional currency. Such value must be translated into usable
information by means of analysis using the tools in accounting cycle.

Financial study deals with the detailed and in-depth analysis of information in
feasibility studies. The study sets the viability and possible weaknesses that the
proponents might face in actual business operation. Feasibility Study is the tool and
guide for the proponents to effectively placed all the assumption into actualization.

Financial analysis renders direct and indirect users to understand the details of
the products in continuing cycle of manufacturing, marketing and improvements.

Objectives of Financial Study

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 The main objectives of the proponents for the financial study is to set for
an intelligent decision making for direct and indirect users of financial report of the
business.

Total Project Cost

The start-up cost or known to be the re-organizational cost is the initial

capitalization that will meet the needs to start and established the entity for business
venture. The Initial capital is set at the total amount of eigh hundred fifty thousand
pesos. This amount covers the initial registration, acquisition of assets and other
introductory product research and development.

Sources of Financing

The proponents have contributed into the partnership their own investment
in terms of cash and vehicle for furtherance of the business development. And, thus
maintaining its highest financial discipline towards expenditures.

The business is set for a long term financial stability by securing in the
future a financing for a long-term debt. With this, the proponents can expand if such
product has reach it desired effort to penetrate the market.

Financial Assumption

The financial statements provide very important information to users such as owners
and interested parties. It defines in terms of monies the actual transaction of the entity,
without these, the proponet will venture in futility.

1. The viability of the products in terms of the cost to produce;

2. The capacity of the proponents to produce and sell;
3. The existing market in which the product can penetrate feasibly;
4. The ability of the proponents to control the volatility in market;
5. The competitiveness of the products taking into consideration the cost of
maintaining the existence in the market;

119
 6. The discipline of the proponents to survive by means of their capital growth
and expansion in the future;
7. And the ability to secure the investment of the proponents that will yield
acceptable and progressive return of capital.

Details of Assumptions

The Study must express the details and understandability of the following:

1. The required investments of the proponents to start-up;

2. A deeper understanding of direct materials and other needs to produce;
3. The margin of safety in which the operation must stand and survive;
4. The expression of financial status and position in terms of functional currency;
5. The analysis of the products as a whole in terms of organizing and actual
operation;
6. And the analysis of whether the product is viable for actual market.

The Analysis

The proponent has reach in consonance that the product is viable to market and
such survival is undisputable in the world of competition.

Proverbs

“There are no gardening mistakes, only experiments” – Janet Kilburn Phillips

“He who watches the wind will fail to sow, and he who observes the clouds will fail to
reap” – Ecclesiastes 11:4

We cannot secure ourselves from failure; we can but do our best, and uncertainty of
result must not paralyze exertion. "It is not of him that willeth, nor of him that runneth,
but of God that hath mercy" (Romans 9:16).

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Financial Assumptions

1. Cash are highly liquid and solvent that can be used for current operation,
including cash in bank and time deposits that can be predetermined anytime.
This includes a petty cash fund of Php. 10,000.00 and replenish every time the
balance reaches low or insufficient to meet the daily cost of petty material
expenses.
2. Production Equipment are fixed assets, with maximum life of five (5) years
depreciable but not less than one (1) year. These assets are recorded at their
historical cost and cost of transfer of installation. Assets are directly used for
operation.
3. Production Supplies are supplies directly used for production and are replenished
every year for upgrades and replacement.
4. Organizational cost includes the cost of registration of partnership, permits and
licensing. These costs are recorded as incurred under read accounts
“organizational cost”, and they are considered as pre-operational cost.
5. Partners Equity consist of initial investment for the six (6) partners. These
investments are intended to meet the capital requirements of the partnership’s
operation, and so to cover the succeeding expenses as projected from time to
time.
6. Sales are stated at cost plus 25% mark-ups for proper pricing and determination
of expected sales requirements to satisfy the return of investments of the
partnership.
7. Cost of sales are cost incurred directly attributable to the actual production of the
main products that includes fixed and variable cost. Cost are associated with the
actual sales of the items for proper application of cause and effect.
8. Employees benefit consist of basic salaries per employees, SSS, PHILHEALTH,
and HDMF (PAG-IBIG) mandatory contribution. These are cost incurred for
administrative and operation labor incentives.
9. Utilities are basic needs for the operation but not limited to water and electricity,
but also to communication and other cost of maintaining the facilities for better
usage and convenience.

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10. Office Supplies are immaterial in cost, but necessary in daily transactions that
helps in proper means of documentation, recording, and other use for writing and
printing.
11. Commissions are cost incurred due to employees based on their sales
transactions. These costs are distributed as incentives based on performance of
sales per every employees and other agents involved in actual.

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 CHAPTER VI

SOCIO-ECONOMIC
STUDY

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Introduction

Socio-economic research is one of the most important areas of activity in a

Feasibility Study. Here we study the phenomena that lie at the intersection of the social
and economic spheres of society. There is a need for information about the level of
socio-economic development, the population’s quality of life (urban, rural, etc.), local
problems, and the peculiarities of people’s economic behavior. The main source of such
information is social research. The social economic study is conducted to determine the
degree of the business’ benefits if its justifiable and considerable from an environmental
and social perspective. Its a give and take relationship as the business benefits from
society, society will benefit from the business in return.

This chapter of the feasibility study discusses the benefits of the proposed business
to the economy and society. The business’ relationship and responsibilities towards its
social environment will also be included in this chapter. The business primarily operates
in the City of San Fernando Pampanga, and pampanga is one of the developing cities in
the country making it a great opportunity to invest and start a business. It is important
that up and coming entrepreneurs realize the worth of starting a business with the
purpose of great contribution to society starting from its primary city of which it operates
and maybe the country.

Objectives of the Socio- Economic Plan

 To discuss the benefits that the proposed business will provide to the people in
terms of giving them an organic, safe, and healthy product

 To help the hard working local people solve the problems brought about by stress

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 To contribute in the development of a healthy community as well in the economy’s
development

 Identify and plan actions ahead that the business should take in order to help the
society

Contributions to the Philippines’ Economy

In any market economy, business plays a huge role. Business is the engine of an
economy. Business provides jobs that allow people to make money and goods and
services that people can buy with the money they make. Without business, the
economy would be very inefficient and/or very primitive.

The Philippines is considered a newly industrialized country as it transitioned from

an economy based in agriculture to manufacturing and service. The government needs
businesses to be efficient. A business provides employment to people and therefore
allowing them to afford their daily needs, and in return the business earns progress and
profit. Taxes are what the government needs to accumulate funds in the form of taxes
for the primary welfare of the people or public. The revenue generated from the taxes to
finance its programs allotted towards its duties and fulfill its duties and responsibilities to
the community. Businesses are one of the major sources of funding for the Philippine
Government by the people’s taxes just like the ordinary income earner.

One of the UAD partnership’s priorities other than to make profit, is its relationship
with its employees and will provide job opportunities and services to the community.
Respect is the best approach to these employees and treating them as family rather
than employees is what’s best for the company and for their morale, regardless of
accolades. The proponents will also make sure to contribute to the economic growth by

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paying the taxes due at the exact amount to fulfill its responsibility to the government
and to the economy. The business will assure the security of all its permits and licenses
before its operation starts which also contributes to the country’s development. As a
starting business, the UAD partnership’s growth will be slow yet efficient, make the right
decisions yet take chances to stand out from competitors to ensure its survival in the
market, and this may result in creating a healthy community with well satisfied
customers.

A. Employees

 The success of any business is directly affected by the performance of the

employees within the organization, whether or not those employees are dealing
directly with customers. Businesses that clearly understand the impact of their
employees' performance are better able to manage employee output and
productivity. Properly managing employee performance helps any business to
increase profits and consistently meet sales goals. The UAD partnership will be
setting high standards for the job vacancies that the potential applicants should
meet. The business will not meet its objectives without the employees. They will be
treated well and with utmost respect like a family for their morale boost and
confidence in the organization, given full rights especially the right to voice out their
opinions and ideas that will help the organization improve. Their safety and security
will be rest assured.

B. Community

 The UAD partnership will make its impact in the community by providing a remedy
for stress at the palm of their hands. A product that will make them breath a sigh of
relief that will impact their physical and importantly their mental health to continue
what they do each and everyday. It is also a product that is cost efficient and eco
friendly. The UAD partnership will always be part of the community, set examples,

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 and will show its concern in any way it can. It will be an example in terms of
maintaining clean surrounding, proper waste disposal, and providing
encouragement to the youth in terms of valuing their families, education, and
develop their talents and skills.

C. Environment

 The UAD partnership will make maintenance of a clean environment a must starting
in its workplace. Proper disposal of the workplace’s waste will be checked
thoroughly and properly placed before the garbage truck arrives. The production of
the product will never use added chemicals that may harm the environment and the
welfare of the production workers. The business of the partnership will guarantee an
eco friendly product which can contribute in health and awareness.

D. Government

 Complying to the government’s rules and regulations is one of the things that the
UAD partnership can do for the government and set an example to the people.
Every business abide by its laws and pays tax consistently and the UAD partnership
is no exception to it, abiding by the government’s laws will help maintain an orderly
society. These taxes support the government’s funding for the City and for the youth
as well.

E. Economy

 Businesses contribute directly to the economy’s growth. Aside from the profits
gained by the business, the jobs given to the employees and the income that comes
with it too contribute to the economy. The business also pays the taxes due to the
government at the right time.

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F. Customers

 Relationship with the customers is a certain give and take situation. Their
satisfaction with the product means the satisfaction with the organization. The UAD
partnership will ensure the satisfaction of its customers and will listen to their
comments or suggestions for the betterment of the potential products the company
will offer to them. The AHM body massage oil will be sold at a reasonable price.
With the help of the customers and with their trust, the business will earn profit.

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 Bureau of Fire Protection

About the service:

Fire Safety Inspection Certificate is pre-requisite prior to the issuance of

Occupancy Permit. It signifies that the owner/administrator significantly complied with
the standard requirements recommended by the Fire Safety Inspector/Fire safety Plan
Reviewer of the establishment.

Where to get?

Pampanga Provincial Office, City of San Fernando, Fire Station

FEE:

Ten percent (10%) of all fees charged by the building official or by the Local
Government Unit of other government agencies concerned in granting pertinent permits
or licenses.

Requirements:

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 Endorsement from the local Building Official (BO) Business Licensing Office

 Photocopy of Building Permit and Assessment of Occupancy Permit

Fee/Assessment of Business Permit Fee/BPLO Assessment/Tax Bill for Business
Permit, as the case maybe

 Copy of Fire Insurance Policy, if any

 Copy of Latest Fire Inspection Certificate Immediately preceding the application,

if any

 Three (3) sets of Fire & Life Safety Assessment Report-2 (FALAR-2) for
Occupancy Permit or (FALAR-3) for Occupancy at least 50 persons

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 Bureau of Internal Revenue

About the Service:

Registering the business with the Bureau of Internal

Revenue (BIR) is one of the things that a business owner
needs to do to make the business legal and to avoid the risk
of being tax invader.

Where to get?

BIR office or it’s all branch offices. It also can be done at the BIR Revenue
District Office (RDO)

FEE:

A P 500.00 registration fee per year is due every January 31 of the succeeding
year. All processing are without payment. Authority To Print, (ATP), Ask for Official
Receipts and other signage are free of charge.

Lifespan

Mandatory renewal of registration, unless a certificate of closure has been issued

by the local government and barangay head. A 30 days requirement for closure must be
filed with the Bureau of Internal Revenue, and surrender all registration documents for
examination.

Requirements:

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  Certification Articles of Partnership SEC

 Contract of Lease

 Barangay Clearance/Mayor’s Permit

Local building Official Division Clearance

FEE:

P6,000.00

Requirements:

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 Accomplished Application Form duly notarized or subscribed
(copies)

 Lot/Location Plan (5 copies)

 Barangay Clearance

 Current residence certificate of applicant or authorized

representative

 Certificate Tax payment of a Lot

 Contract of Lease

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 Bureau of Food and Drugs Department

Where to get?

Food and Drug Administration Office

FEE:

Initial (1-year Validity) P4,000.00

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 Renewal (2-years Validity) P8,000.00

Requirements:

 Notarized Petition form

 ID Picture of the owner/General Manager

 A copy of Registration with Securities and Exchange

Commission

 Location Plan of Office and Warehouse

 Contract of Lease of Office and Warehouse

 List of Product

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 Environmental Management Permit

Where to get?

FEE:

P2,000.00

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Requirements:

 Letter of request to DENR-EMB stating desire to receive ECC.

 Project Description

 Estimated project capacity, type of volume of products and discharges

 Proof of possession of necessary capital for proposed project

- Location map of project area

- Manpower requirements

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