Leon Guinto Memorial College, Inc.

433 Mabini St. Atimonan, Quezon

CASE STUDY REGARDING TO ASM LAUNDRY SHOP AT

BARANGAY POBLACION II ALABAT, QUEZON

In Partial Fulfilment of the Requirement for the

subject Operation Management and TQM

Submitted to: Mr. Royce P. Pardo, CPA

Submitted by: Nica Jane M. Barretto

December 14, 2020

 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

Introduction

ASM Laundry shop as the major name of the business,

originated from the name of the former mayor in Alabat, Quezon
abbreviation Artemio S. Mascariña. People will easy recognize where
the business is located. ASM Laundry shop was solely owns by Mrs.
Emelisa Fulledo who is the care taker of the former mayor of Alabat,
Quezon. Former mayor Artemio S. Mascariña allows Mrs. Emeliza
Fulledo to put up a laundry shop business on their place for free.

The laundry shop is located in Mascariña st. Barangay

Poblacion ll Alabat, Quezon, the business proposed for the
government employee and the residents of Alabat, Quezon because
not all the government employee and the residents have time to do
the laundry. ASM Laundry shop started on October 08, 2016. And it
is the first laundry shop built in Alabat, Quezon until today.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

Problems to be resolve I

I. Operates a Business without completed the license

The researcher finds out that the laundry shop business only
have Barangay Permit which is not enough for the business to
operate. The Business operated lacking of several permits to
consider in putting up a business. The owner of ASM Laundry Shop,
do not have enough knowledge and awareness about Business
ethics since it is their first time.

Il. ASM Laundry shop Improper Drying Area and Arrangement of

Clothes

Researcher recognized that drying area of clothes are untidy,

clothes are often dried and placed on the floor when they are no
longer fit in clothesline. The floors are often paved by people.
Laundry can be contaminated as it is a roadblock area. Washed
clothes often separated when the wind is strong and the
laundrywoman cannot identify the owner of the clothes. After the
clothes will dry there is another laundrywoman who is job is folding
the clothes, the improper arrangement of clothes has been sadly
neglected. Also the clothes are hard to dry when rainy season.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

Effect of the Problem II

I. Operate a Business in not completed the License and Permit

Registering a small business in the Philippines is a long

process and many business owners specially, small business owners
tempting to operate a business without license and permit. The
unfavourable consequences according to Yaptinchay managing
director of Full Suite are in follow;

Government Fines

The initial damage would be monetary compensation. The criminal

penalty for “Failure to register,” or operating an unregistered
business according to BIR regulation is “Fine of not less than P5,000
but not more than P20,000 and imprisonment of not less than 6
months but not more 2 years.”

The compromise amount depends on the location of the

establishment: P20,000 in cities, P10,000 in 1 st class municipalities,
P5,000 in 2nd class municipalities, and P2,000 in 3 rd class
municipalities.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management

LGU Penalties

In addition to the obligation to the taxman, Mrs. Fulledo may

also receive penalties, which vary according to location or city hall
that have registered under.

Closure

In more extreme cases of delinquency, such as operating for

several years without a business permit or not having one in the first
place the local government can move to close down the operations
until Mrs. Fulledo have settled the deficiencies.

An attempt to run from the penalties by shuttering or

abandoning the business is also unwise, because there are also
regulation and procedures for the proper shutting down of a
business.

It will also leave a black mark on your record that LGU’s or the
BIR can see if the business owner decided to pursue it again in the
future. The cons far outweigh any possible pros by operating
illegitimately, so be sure to keep everything on the level as a
business owner.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major in
Financial Management
Il. ASM Laundry shop Improper Drying Area and Arrangement of
Clothes.

Mrs. Fulledo customers may lose out. The Researcher also

gathers information from the customers of Mrs. Fulledo and
according to them some of their clothes are missing and cannot be
found. Some customers of Mrs. Fulledo prefer to do their laundry
rather than to go in Mrs. Fulledo laundry shop because of what
happen to their clothes. And some costumers said that they are no
choice since ASM laundry shop is the only one laundry shop
established in Alabat, Quezon.

Root Cause of the Problem III

l. Operate a Business in not completed the License and Permit

According to Mrs. Fulledo, she do not have any idea about the
process of registering and getting permit and licence for her laundry
shop Business and Mrs. Fulledo also told that the Local Government
of Alabat, Quezon are not looking for her license and permit. Mrs.
Fulledo also said that it is because her business is located at former
Mayor Mascariña residence which is very unethical when it comes on
a business ethics. And also it may cost a lot of money
LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major
in Financial Management

Il.ASM Laundry shop Improper Drying Area and Arrangement of

Clothes.

Mrs. Fulledo told that due to lack of clothesline and nonstop

laundry coming to them there is not enough space for the other
clothes drying in clotheslines. The Laundrywoman who is job is
folding the clothes cannot identify the owners of the clothes and do
not have idea if the clothes are in a right owner.

Recommendations lll

l. Operate a Business in not completed the License and Permit

Mrs. Fulledo recommended to having Department of Trade and

Industry (DTI) certificate, Mayor’s permit, and Bureau of Internal
Revenue (BIR) as soon as possible to make the operation of her
laundry shop business would be legal and to do some research
about business ethics. According to Mrs. Fulledo that the monthly net
income she earns varies from Php24,000 to Php30,000. If Mrs.
Fulledo would save 50% she earns in one month it would not be a
burden for her.

Il. ASM Laundry shop Improper Drying Area and Arrangement of the
Clothes.

It is recommended:

 That Mrs. Fulledo could buy in online a wind proof loops

clothesline or buy and use hangers and dress clip.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration
major in Financial Management
 That Mrs. Fulledo could make a foldable drying rack.

 That Mrs. Fulledo to wash and dry the clothes by batch and
properly arrange it in the clotheslines.

Implementation lV
The table below show the Implementation for the recommendation of root cause of the
problems operate a Business without completed the license and permit.

Table 1

Time to Associated Costs

Department Procedure complete (Estimated as of 2006)

1. DTI Business Name Registration fee:

(Department of Registration Certificate Scope:
Trade Industry) from any DTI Office or log
. on to www.bnrs.dti.gov.ph. National=P2000
1-2 days

Validity: 5 years Regional=P1000

Requirements: City/Municipality=P500

 Accomplished Barangay=P200*Total
Business Name fees to include Php 15
Registration Form documentary stamp tax
[Single (DST)
Proprietorship]

 Tax Identification
Number (TIN)

 List of five business

names ranked
according to
preference

2. Barangay Obtain Barangay clearance

1 day Php100
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration
major in Financial Management

Time to Associated Costs

Department Procedure complete (Estimated as of 2006)

3.Mayor’s Office Obtain Mayor’s Permit The fees vary depending

to operate at the on the local government
Licensing Section of the 1to3 unit (city/municipality)
City or Municipality weeks issuing the mayor’s permit.
PHP 900, sanitary permit
fee + 0.2% of capital for
license fee
PHP 2000, PHP 1,500,
plumbing inspection fee
PHP 850, electrical
inspection fee
PHP 500 building permit
fee
PHP 400 sign board permit
fee)

4.BIR (Bureau of After completing the BIR annual registration fee:

Internal Revenue) three requirements Php67
above, register the Book of account
business with Revenue 3days purchased at office
District Office (RDO) supplies store: Php100
Printing of official receipts
(25 booklets) from an
accredited printing press:
Php 3,200

Overall Estimated cost needed to complete the licence and permit is

Php10,317 and the estimated time to complete is 1 to 4 weeks.
 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major
in Financial Management

Il. ASM Laundry shop Improper Drying Area and Arrangement of the
Clothes.

The online market price of wind proof clothesline is Php50 to

Php200 per yard depending on the quality of clothesline and Php100

shipping fee. The backyard space is 12 yards. The market price of

hanger and dress clip is Php50 to Php100 if 12 pieces. Hanger and

dress clip needed is 84 pieces

The total estimated budget needed is Php3,200.

 LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major
in Financial Management
SUPPORTING DOCUMENTS V
LEON GUINTO MEMORIAL COLLEGE, INC.
Bachelor of Science in Business Administration major
in Financial Management