CHAPTER V

The Competition

A. COMPETITIVE POSITION

Based on the recent research, below are the businesses considered to be direct

competitors of the Sleeping Pods:

 Wings Transit Lounge – Located near NAIA Terminal 3. It is a basic airport hotel with

private rooms and single-sex sleeping capsules. They also offer a lounge and free snacks.

 RedDoorz – Located near NAIA Terminal 1. It is a plain hotel with furnished rooms

which consists of flat-screen TVs, desks, wet bars, and minifridges.

B. MARKET SHARE DISTRIBUTION

15%

Wings Transit Lounge

50% RedDoorz
Others

35%
 In the graph above, it is very evident that the strongest competitor would be the

Wings Transit Lounge. The statistics are based on the research from Pasay City, Metro

Manila.

C. PORTER’S 5 FORCES OF COMPETITION

Threat of
New Entrants
(High)

Bargaining
Bargaining
Competitive Power of
Power of
Rivalry (Low) Supplier
Buyer (High)
(High)

Threat of
Substitute
(Moderate)
 FORCES DEGREE REASONS
Rivalry competition is low.

Although there are many

competitors, factoring that this is an

1. Competitive Rivalry Low
accommodating service, the prices

for each enterprise differs by a

significant margin
The quality and availability of

2. Bargaining power of supplier services and equipment is

High
supplier essential to the hotel and motel

industry.
3. Bargaining power of High With the hotel and motel industry,

buyer brand recognition and innovation

 helps attract first-time customers

and it also helps repeat business

with them.
This business offers quality

accommodation and service at an

affordable price. However, it is

4. Threat of substitute Moderate
situated in the center of other

accommodating businesses, not to

mention expensive five-star hotels.

The business is also located in a

popular and convenient location.

5. Threat of new entrants High Future entrepreneurs are bound to

become attracted to this kind of

profitable industry.

D. FUTURE COMPETITION

Having a competitor is inevitable, especially in the field of business and commerce.

However, entrepreneurs should understand that competitions are signs of a healthy economic

environment. Knowing this fact, the owner of the Sleeping Pods views competition as a

creative mechanism which enables him/her to continue improving his/her present service.

Entrepreneurs should make use of the situation of having a competitor to find out if there are

any gaps in the service, unseen problems, or further improvements that can be done to

improve the efficiency and productivity of the business. Identifying the external, internal, and
underlying factors of the business contributes to the further improvement and development of

the enterprise. This includes assessing the competitors, comparing the difference in business

structure, and choosing the right course of action to not be left behind in terms of customer

satisfaction. This can be achieved by having the owner administer a regular inquiry on the

work and customer flow of his/her business and that of the competitor’s. With the right

information, right course of action, and proper execution, the Sleeping Pods will be able to

adapt with the new environment of having competitors and cope with the problems and

changes of which the competitors will bring to the enterprise.

E. MARKET SIZE AND TRENDS

According to the 2016 Health Living Index Survey, Filipinos have one of the

highest rates of sleep deprivation in Asia; 46% of Filipinos do not get enough sleep while

32% said they sleep for less than six hours. Work and study related factors may be a

contributor to this lack of sleep. An average employee must work for 8 hours a day

factoring out overtimes. The same is with students when there are tasked homeworks and

projects which are needed to be passed the next day. 8 hours of work plus the time to

travel to and from home for those whose work are farther, there won’t be enough time for

rest. The Sleeping Pods tries to solve this trend of sleep deprivation by offering cheap,

accessible accommodation near the customer’s workplace. In this way, the time to travel

to and from home may be used for rest and relaxation. The Sleeping Pods is also

strategically placed near the airport because thrifty tourists and travelers choose cheap

accommodations to conserve money for their travel fees.

 CHAPTER VI

Strategic Position and Risk Assessment

A. Business Strength

Shelter is one of the basic needs of a person. It is one of the most important things a person

must have to live and function well in his/her daily life. Moreover, in Pasay, many people have

workplaces far from their homes and allotting some hours after work for their travel.

Additionally, people come in and out of the country from the airports in Pasay. This is a perfect

place for Sleeping Pods as it offers shelter to travelers, commuters, and tourists whether their

stay is planned or not and for those who cannot or do not want to pay for hotel accommodation.

At the same time, they will be having luxurious experience same to that of a hotel for an

affordable price.

B. Marketing / Industry Opportunities

Sleeping Pods plans to occupy a whole floor as partnership with the building owner. It is

looking forward to expand through the building floors, to having their own building, and to

expand all over the Philippines. It also anticipates being well patronized by the citizens and

become a known business in the business world.

C. Risk Assessment

S.W.O.T ANALYSIS
STRENGTHS • Affordable prices of rooms
 • Hotel quality experience

• Easy advertising using brochures,

tarpaulins, and social media

• Rooms are easy to clean due to its

size

• Location will draw in visitors

• Operates for 24 hours

• Offers different facilities aside from

rooms.

• High maintenance of security and

safety.

• Number of customers is not season-

dependent

• Low number of employees

• Limited rooms

• Inability to accommodate pairs or

groups

WEAKNESSES • Limited customer reach

• New business with no established

reputation

• No independent food services.

OPPORTUNITIES • Future Partnership with various
building/building complex owners

• Large target market

• Future Expansions
 • Addition of food service

• Seasonal events and promos

• Advertisements and positive reviews

on the internet

• Future Innovations and

Improvements
• Rising costs of electricity and water
can increase the percentage to pay
the building owner

• Various competitions have

established reputation

• Uncertain economic environment

THREATS • Future competitions

• Changing customer interests

• Price wars with competitions

• Negative press/reviews

• Permanently staying customers

decrease available rooms

Steps to Reduce
Type of Risk Risk Assessment Risk Probability
Risk

High Medium Low

Economic • Inability to • Calculate needed
Risks Cover profit to cover
Operating and operating
Maintenance expenses
 Costs
• Regular clean up
of rooms
• Lack of Water
• Acquire water
and Inadequate
tanks for
Sanitation
independent
Environmental water source
Risks
• Use balconies of
rooms as

• Air pollution smoking areas

• Put air filter in

every rooms
• Regular check up

• Damaged or of equipments in

Destroyed every room

Equipment
Equipment/ • Have customers
Risks
Equipment inform us for
Malfunction malfunctioning
equipment
• Inability to get • Calculate capital

Financial Risks capital back and the target

with profit profit

• Regular check-
Health and
• Illness or Injury ups for
Safety Risks
employees
Operational • Unexpected • Teach employees
Risks Catastrophic and practice
Events (e.g. disaster risk
typhoons, reduction and
 management

• Acquire safety
equipments (e.g.
fire
earthquakes) extinguishers,
and Accidents fire alarms, and
first aid kits)

• Inform everyone
of fire exits and
safety procedures
• Hire and train
• Lack of
backup
employees
employees
• Advertisements
through papers
(i.e.
brochures/pamph
lets and
tarpaulins) and

• Inability to social media (e.g.

Reputational Facebook and
Gain People’s
Risks Instagram)
Patronage

• Offer promos for

Business
Opening and
holidays (e.g.
discounts and
freebies)
Security Risks • Business • Organize
Information meetings with
 owners and
trusted partners
and employees.
Leak
• Train employee’s
cyber security
practices
• Inability to • Gain partnerships
Accommodate and expand
All Customers business

Service • Create rooms in

• Inability to
Delivery Risks the future with
Accommodate
different sizes for
Pairs and
individuals,
Groups
pairs, and group
• Continuous
• Customer
service and room
Retention
innovation
• Accept
suggestions from
Strategic Risks
• Lack of
customers
Innovation
• Offer customers
Ideas
for feedback and
online reviews
• Secure a gas/oil-
• Power Outage powered backup

Technological generator

Risks • Telephone and • Secure backup

Communicatio lines for
n Failures emergencies
D. Definition of Strategic Position

The Sleeping Pods provides quality rooms the best one can experience. One of the strategies
it has is the way of identifying the threats that can possibly occur anytime during the business
operation, assessing its probability, and thinking of ways to mitigate it or to use it to our
advantage. Our services are tailored specifically to working people whether their workplace is far
from home or they simply do not want to use money on expensive hotel accommodations. The
location will not be a problem as it is close to the target market but to acquire a wider customer
reach, proper advertisements by handing brochures, posting tarpaulins, and posting the
information and location on social media should be done. Hence, Sleeping Pods stipulates the
following strategic positions:

• Right Brand - Sleeping Pods was created as a combination of a hotel and hostel and was
derived from the Japanese capsule hotels as there weren’t many popular capsule hotels here
in the Philippines. It ensures that our business has less competition and our service is unique
in our country.

• Right Quality - Sleeping Pods’ pride rests on ensuring that the rooms’ quality stays the
same or better yet improves. It also ensures that from the very rooms and up to the service
you receive, the quality of your experience is same to that of hotels and the safety, security,
and relaxation you will have is of utmost priority.

• Right Equipment - Sleeping Pods ensures that customers will be able to use all the
equipment they need in order to function well other than the rooms they need as shelter,
starting from cleaning up to entertainment and recreation.

• Right Quantity - Sleeping Pods ensures that every room will have the same equipment
available for every customer to use and new equipments will be added to every room if the
demands expect us to offer something we need to have.
• Right Price - As Sleeping Pods intends to be an incorporation of a hotel and a hostel, it
ensures that the price will be same or in the range to that of common hostels without
compromising the quality that customers receive. It will be a combination of the two that
incorporates hotel quality and hostel price.

• Right Place - Since our target customers are people that work late, are far from home, and
those who cannot or do not want to pay for expensive hotel accommodations, Pasay is the
best place for this business to stand on because this place is where our target market are
located including the tourists coming from the airports. Therefore, this is the place Sleeping
Pods is needed by the people.

• Right Time - Since there are many companies in Pasay that differ in work time and planes
never land in the airport at the same time, we chose to operate for 24 hours so that we can
accommodate all coming visitors in different hours. This will also enable us to cater to the
needs and demands of staying customers anytime.

Chapter VII

Marketing Plan and Sales Strategy

A. Business Message

Sleeping Pods offers quality services that will make you feel relaxed, rejuvenated and have tons
of fun which will surely make you come back and stay for a long period of time. Be it locals or
tourists, we will make sure that your time, effort and money will not be wasted during your stay
at the Sleeping Pods.

Sleeping Pods transcends other hotels, capsule style or non-alike with its affordable price, great
ambiance, quality service and hospitable staff. This is a great place to rest for all the travelers
and adventurers your loves to have fun in their travels.

MARKETING MIX SLEEPING PODS OTHER COMPANIES

ASSESSMENT (BASED ON MARKET
WATCHES)

1.) Product Capsule pods Other common hostel rooms

2.) Price Php 1000 per night Php 1,200 per night

3.) Place #10 Domestic Rd., Pasay Mostly are located next to
City, Metro Manila, near railway transits.
Ninoy Aquino International
Airport

4.) Promotion  Billboards  Tarpaulin

 Tarpaulin  Brochures

 Advertising  Billboards

 Brochures  Word of mouth

  Word of Mouth

B. MARKETING CHANNELS

Sleeping pods is a type of a capsule hotel business, wherefore it does not provide tangible goods
and instead serve the customers. Thus, the On-demand Business Model was used to indicate the
marketing channels. This type of marketing channel diagram fulfills consumer demand on the
basis of immediate access to goods and services. “Access is better than Ownership” is a
fundamental principle of the said diagram wherein it asserts that it is better to temporarily rent
something than to buy it permanently.

Core On-demand Consumer

Services Technology

On-demand Business
Model

Complimentary Consumer
Resources Behavior
Figure 1. On-demand Business Model

Figure 1. Displays a diagram that will help the entrepreneurs understand how the business will
work while making use of existing unutilized assets and infrastructure at scale and at the same
time, it will answer why it is important for the consumers to have immediate access to the
services the business offer. Sleeping Pods devised a marketing channel that will perform several
functions as mentioned below.

Core On-demand Services: This comprises financing, maintenance, information dissemination,

channel coordination, facilitation, and logistics management in which the business operations are
handled.

Complimentary Resources: Includes Customer Relationship Management (CRM) platforms

which are tech solutions that help the business manage communication with current and potential
clients.

Consumer Technology: Involves ubiquitous connectivity of consumers in the business as a

result of the ever-growing technology. Because of this, Sleeping Pods will be able to use the
social networking sites and applications to promote and advertise the capsule hotels the business
offers.
Consumer Behavior: This fits the “Access is better than Ownership” principle as consumers are
usually staying at hotels for convenience, efficiency, leisure, and to save money. The
entrepreneurs took this into account while planning the business as renting a room for a limited
time is more efficient than buying your own house or unit in an area that you would not
permanently stay in.

C. STRATEGIC PARTNERSHIP

RAW MATERIALS SUPPLIER’S NAME LOCATION

Pillow Kingfisher SM Marilao

Mattress Uratex Lawang Bato

Bedsheets Canadian Beddings SM North Edsa

D. MARKETING TACTICS

For the pre operating promotions of the Sleeping Pods, it involved the use of tarpaulins,
billboards, social media and, also the word of mouth in order to advertise the services we are
presenting. The tarpaulin, billboards, and online advertising included the following business
name and logo, service information and service promotions. This was effectively done as it
increases the awareness of the people to our services and to be able to find prospect customers.
Our last marketing tactic is the word of mouth where it is an effective way to convince other
possible customers to try our capsule hotel and spread their experiences in our services.

E. SALES STRUCTURE

A good structure depends on the specifics of business positions of the company. The decisions
that are apposite to the amount and allocation of the sales time and effort are an important
element when it comes to making a good sales structure. In defining the precise amount of sales
force and levels of responsibility, structure of the scope of work and time for building relations
and contacts, we are currently developing the specific methods in order to help us in each
element.

F. SALES ASSUMPTION

The sales assumption of the Sleeping Pods will increase at 10% in the second year of its
operation and 20% increase in the third year of operation of the business. Sales increase will
depend on the demand of the customers and the promotion of the said business.
 CHAPTER VIII

Operations

A. Plant and Facilities

Sleeping Pods is located at #10 Domestic Rd., Pasay City, Metro Manila. The company chooses
this place because it is near Ninoy Aquino International Airport where many travelers and
tourists usually pass by. The area is approximately 400 square meters and can accommodate up
to 100 customers at once.

The 25 square meters will be used for the room for staff and stock room as well. 50 square
meters will be used for the lobby area where the guests can interact with each other while
waiting for their room. An additional 75 square meters will be used for building a shower room
and comfort room. The remaining 300 square meters will be used for the business operations
where the sleeping capsules will be located
B. Manufacturing/Production Plan

The following figures below present the process flowchart or step-by-step procedure of
assembling the needed equipment in order to build the capsule hotel:

For the Capsule Pods:

Assemble and place the Clean first the capsule pods

capsule pods in the and maintain its cleanliness.
designated area.

Place the heavy equipment Build a power outlet and

like air conditioning unit place the lights inside the
inside 10 capsule pods. capsule pods.

Build or place air vents inside. Place a bed or mattress unto

the capsule pods.
Make the capsule pods Bring and place the pillows
comfortable for the guests. and blanket.
 For the Public showers:

Place and build the cubicles Place the showers and

inside the shower areas. heaters in each cubicles.

Assign a staff to maintain the Place some freebies like

shower area clean. shampoo and soap.
 For the lounge:
Place the heavy equipment Build the power outlets and
first like the vending machine lights.
and television.

Place the couches inside the Place some drinks and food
lounge. inside the vending machine.

Place all the chairs and tables

inside the lounge.

C. Utensils and Equipment

Sleeping Pods Equipments List

Equipment Unit Picture Cost

Capsule Pods 25 48,000 each

Air Vents 50 900 each

Mattresses 50 3,500 each

Television 3 25,000 each

Light/Lamp 55 500 each

Air Conditioning 10 15,000 each

Unit

Power Outlet 55 100 each

Blanket 50 300 each

Pillow 50 300 each

Shower 20 500 each

Shower Heater 20 4,000 each

Couch 5 3,000 each

Vending Machine 2 45,000 each

Chair 20 400 each

Table 10 1,500 each

D. Casual Labor Requirements

Number of Employees

Employees Number of personnel needed

General Manager 1

Finance and Accounting Manager 2

Production Manager 2

Service Crew/Cashier 10
The Sleeping Pods consist of two cashiers to avoid rants and raves that can cause a scene, we
decided to have three service crew to maintain high standards of customer service during high-
volume and fast-paced operations. Also, our service crews will communicate clearly and
positively with the customers as well as with co-workers and management. And last, of the
production staff, the Sleeping Pods has two production staff for teamwork to assist the customers
with ease.

1. General Manager - tasked with overseeing daily business activities, improving overall
business functions, training heads of departments, managing budgets, developing strategic plans,
creating policies, and communicating business goals.

Minimum Wage: Php. 20,000.00 monthly. 10% increase yearly.

Qualifications:

 Degree in Business Management or a Masters in Business Administration.

 Good knowledge of different business functions.

 Strong leadership qualities.

 Excellent communication skills.

 Highly organized.

 Strong work ethic.

  Good interpersonal skills.

 Meticulous attention to detail.

 Computer literate.

 Proactive nature.

2. Finance and Accounting Manager- Finance Manager organizes and manages an

organization's or an individual's financial portfolio. They also prepare financial reports, oversee
investments and help with cash management. An Accounting Manager is in charge of managing
a company's relationships with its customers. They are in charge of building long-term
relationships with a group of customers and generally stay with customers for the length of their
relationship with the company.

Minimum Wage: Php. 15,000.00 monthly. 10% increase yearly.

Finance Manager Qualifications:

 Degree in Financial Management

 Innate problem-solver

 Analytical Skills

 Exceptional Leadership

 Adaptable Communication
  Humble Confidence

 Unwavering Professionalism

 Self-Management

 Ease with Technology

Accounting Manager Qualifications:

 Bachelor’s degree in sales, communications, or related field.

 More education or experience may be preferred.

 Exceptional verbal and written communication skills.

 Ability to collect, track, and analyze large amounts of data.

 Adaptability and strong problem-solving skills.

 Excellent active listening skills.

 Ability to build rapport and collaborate with others within the company and externally.

 Understanding of consumer behaviors and industry trends.

 Extensive, accurate product knowledge.

3.Production Manager - ensure that manufacturing processes run reliably and efficiently.

Minimum Wage: Php. 12,000.00 monthly. 10% increase yearly.

Qualifications:

 confidence

 technical skills

 project management skills

 organization and efficiency

 leadership and interpersonal skills

 problem-solving skills

 IT and numerical skills

 communication skills

 team-working skills.

4. Service Crew/Maintenance Crew- individuals that serve customers directly in a business

organization. They also have the job to maintain the area clean and safe for all the customers.
Minimum Wage: Php. 10,000.00 monthly. 10% increase yearly.

Qualifications:

 Degree in Production and Operations Management

 Interact with customers, received orders, processed payments, respond appropriately to

customer issues.

 Preparation of products as ordered by customers.

 Maintaining a clean and safe work environment.

 Unloading deliveries and stocking products.

 Ability to operate cash register terminal

E. Stock Management

The Sleeping Pods manages by using Fixed-time/fixed-level reordering. This involves ordering
new stock either at fixed times, fixed levels or both. For example, a company may have a
standing order for 500 units every third Sunday of the month. This type of stock control is
particularly useful for companies with fixed contracts and stable demand, with sporadic irregular
orders unless they’re placed with a long-term delivery date.

Hotels tend to get overbooked at times, that’s why we make sure that the hotel will be managed
properly to the point that it will not be overcrowded to make sure that the hotel can tend to the
consumer’s needs so that we can ensure their safety and have an environment comfortable for
them.

F. Supply Distribution

In order to give the satisfaction that the consumer’s needs, the Sleeping Pods will provide good
quality services to every consumer. Sleeping Pods acquires the things and equipment needed by
partnering with well-established companies and also with small businesses.

G. Order Fulfillment and Customer Service

In order to assure that satisfaction and enjoyment will be given to the consumers, the Sleeping
Pods will provide good quality of services. The everyday activity of the hotel will be well-
monitored; from checking in and checking out of the consumer, assigned staff will check if the
unused rooms are clean in order to give way for the next consumer and give a fun and hospitable
environment for the consumers.

K. Safety, Health, and Environmental Concerns Safety and Health Concerns

For the employees

Each employee should undergo medical or assessments to ensure if they are physically and
mentally fit to work

Providing first aid kit in case of a minor accident

Proper wearing of uniform and, mask and gloves.

Providing health and safety instruction to the employees

For the facilities

Adequate ventilation of the workplace

Keeping the workplace and store clean

Proper storage of equipment

Checking the electricity

A fire extinguisher should be available in the area

Production Manager and Worker Job Benefits:

1. SSS

2. PhilHealth
3. PAG-IBIG

CHAPTER IX

Management Organization

A. PRINCIPAL/KEY EMPLOYEES

Partnership, which is a legal form of business, is composed of five (5) persons who contribute
money to be able to increase the business venture. In this partnership, the partners are
knowledgeable enough in sharing profits and even the losses. The owner, as the head of the
business, is the one who facilitates the employees on their daily operations.

B. MANAGEMENT TO BE RECRUITED

The Sleeping Pods considers the enjoyment, health, and safety of customers by serving with
twist of the entrepreneurs’ room rentals and services and considering its needs. The management
will hire employees that are skilled and are willing to learn, to properly run the business for the
sake of the owners.

C. ORGANIZATIONAL CHART
D. MANAGEMENT STYLE/PARTNERSHIP CULTURE

The owners of The Sleeping Pods are the one who in charge on all the actions taken, as well as
on the growth and development of the business. The business staffs will then be in charge in
maintaining the good service and relationship of the business, and owners, to its customers.

According to Manny Aligada of Globe business, no matter how successful people had become
over the years, Filipinos never forget to strive in order to make such businesses flourish and
grow. He also added that, Filipino entrepreneurs are all into businesses to earn money not only
for personal needs and satisfactions, but also for familial purposes, which fuels the
entrepreneurs’ passion towards businesses, making it successful; this means that, every business
could grow and develop to maintain the trend of products and services to its customers and
clients. This also shows that Filipinos are hard-working and confident, that is why people keep
on developing and creating new stuffs to fulfill the customers’ needs.

Management style in the Philippines focuses more on the needs of individual accommodation as
most travelers are only single persons in the Philippines. However, there should be an awareness
on the Filipino characteristics that embodies personal relationships that are present in the
country. Having the concept of “fellowship” is strongly programmed into the Filipino
consciousness; it is extremely important to be aware of the sense of “face” of every member of a
group, because an insult to one could be constructed as an insult to all, therefore, managers treat
its subordinates with respect and at the same time, maintain the dignity of the position of the
boss.

The Sleeping Pods is open in any suggestions given by the employees during the meeting of the
company; the ideas, thoughts and suggestions of the employees shall be acknowledged.
Recommendation of ideas and suggestions can help in the growth of the business.
 CHAPTER X

Community Involvement and Social Responsibility

A. SOCIAL RESPONSIBILITY

The stability of the company and its staff, combined with a strong dedication to customer
satisfaction, is the secret to the company's success. Maintaining social responsibilities for people,
the environment and the community is a great way to promote and maintain a good relationship
with people and the community and will help improve the society.

Today’s capsule hotel owners see that some travelers are becoming much more frugal in
their spending patterns, and even to an extent, corporates. A lot of travelers just want the basics
and all the necessities — what they call “affordable luxury”. Social responsibility to do the right
thing for the sake of the employees, the community and the natural environment is an important
aspect of the business. Always think of the things that will help you grow your business.
Respecting everyone, whether inside or outside of your business, giving to charitable causes,
following sustainable practices and encouraging healthy lifestyle are among the many ways to
show love and caring to the community.

Sleeping pods is an enterprise that values not only the customers but also the community
to which it has been established. This displays dignity and honesty towards internal consumers
who are staff, as well as external customers who are potential customers or company patrons.
Sleeping pods wishes to achieve certain objectives and social responsibilities which are stated
below.

 Eco-friendly initiatives
To appeal to the social traveler, going green should be the priority. Last year, 65% of global
travelers expressed an intent to stay in eco-friendly accommodation. And you don’t want to miss
out on those potential customers. So, what can you do to show a commitment to the
environment? Try things like swapping out light bulbs for energy efficient alternatives, installing
low-flow tops and toilets, and reducing plastic use.’

 Community service

Social responsibility means more than caring about the environment. It’s about caring for people
and communities too. And that makes sense as a hotelier. Your community is what makes your
locality great and entices travelers to visit so you should be invested in its health and prosperity.
Consider creating initiatives or programs that give back to the community you love.

 Get everyone-including customers- involved

Social responsibility may be an initiative of the management, but implementation is a collective

effort. Every member of the business must be involved, since it also demonstrates a united front.
Involving the employees and other members of the business in the process will boost their
morale and add enthusiasm as they go about their work. It is true what they say: happy
employees are productive employees. Your employees may also turn out to be one of your best
ambassadors. You will be surprised at how brilliant ideas you can get from your employees
regarding ways on how to improve your capsule hotel’s social responsibility program. Getting
them involved also means that they no longer have to outsource people to do your social
responsibility work for you. Your employees will be more than happy to do the work themselves,
as long as you motivate and encourage them enough.
  Building goodwill

Creating goodwill is a social responsibility that is important in almost every area of your
business. Spreading goodwill makes people feel good about you, and it encourages them to
spread goodwill to others. In business, creating goodwill can help you to build relationship that
ensures the long-term success of your business. You can create goodwill in several ways, from
creating customer appreciation programs to going the extra mile when you are providing a
service. In return, your business will reap a number of benefits. Just consider to respect and value
and do not harm to your marketplace, your workplace, community or the environment to be sure
that your business will have a favorable reputation.

In recent years many businesses have embraced corporate social responsibility (CSR), a
philosophy in which the company’s expected actions include not only producing a reliable
product, charging a fair price with fair profit margins, and paying a fair wage to employees, but
also caring for the environment and acting on other social concerns. Social responsibility
empowers employees to leverage the corporate resources at their disposal to do good. Formal
corporate social responsibility programs can boost your employee morale and lead to greater
productivity in workforce. You may also introduce different programs like sponsor an event,
help a charity, run for a cause, etc. to give back to those who have helped to support your
business.

Some benefits of developing CSR policies are:

 It helps capsule hotels to better customer relationships as the CSR encourages innovation
and help to make such quality service which are beneficial for whole society.

 It clarifies the business objective and offers detailed evidence to owners of capsule hotel
which helps to build long term relationship between staff and owners.

 It encourages labor rights, so the staff may feel secure and perform well.
  It helps to make the environment clean and healthy and gives its customers a good image
of a business.

 It works for the welfare of society plus increase the profits of the business.

 It helps a business to fulfil the legal, ethical and societal duties.

B. BUSINESS POLICIES

Sleeping Pods developed these rules and policies to ensure orderly operations in the business
environment. Also, these aim to create a good working environment for the employees where
they can enjoy their jobs and the most relaxing stay our guests can experience. Consequently,
Sleeping Pods expects employees and others who are engaged to provide service, such as
temporary personnel, to strongly adhere to these policies and rules while on the business
premises and performing work-related activities. In spite of the fact that the employee or the
company can terminate the employment relationship, with or without any reason at any time, the
following are some of the actions which violates the hotel’s rules and regulations and which will
result in disciplinary actions including termination of employment.

The Hotel Rules and Regulations lists some of the basic employment policies and some
exclusive to the hotel for which every employee is responsible. It identifies standards of behavior
that, when violated, will not be tolerated by the company and will amount to disciplinary action
up to termination. In addition to maintaining and enforcing these regulations to protect the
interests and safety of all employees and the business, Sleeping Pods complies with all
applicable state and local laws concerning employer/employee rights and obligations.

GENERAL CONDUCT ITEMS

A. Substance Abuse
1. Working under the influence of alcohol or illegal drugs

2. Possession, distribution, sale, transfer, or use of alcohol or illegal drugs in the workplace,
while on duty or while operating employer-owned equipment

B. Violence

1. Possession of dangerous or unauthorized materials, including but not limited to explosives

or firearms, in the workplace

2. Fighting or threatening violence in the workplace

3. Any form of sexual harassment towards other employees or guests

C. Verbal Abuse

1. Using excessively abusive, threatening, or obscene language towards other employees or

guests

2. Using intimidation tactics or making threats towards other employees or guests

3. Making malicious, false, and harmful statement about other employees or guests
4. Discrimination of race, gender, or religious and cultural beliefs of other employees or guests

5. Gossiping with/about other employees or guests

D. Behavior

1. Continuous dishonesty and discourtesy

2. Continuous insubordination

3. Repeated violation of policies

4. Sabotaging another employee’s work

5. Any type of horseplay

6. Smoking within the business premises during breaks

7. Behavior that the company reasonably believes as inappropriate

8. Failure to report violations

E. Workplace Security
1. Publicly disclosing other employees’ or guests’ private information

2. Unauthorized disclosure of business “secrets” or confidential information

3. Falsifying company records or reports, including but not limited to one’s time records or of
another employee

4. Using work computers for personal reasons such as logging in of social media accounts

5. Failure to cooperate in investigations

CASH CONTROL

1. Failure to adhere to hotel cash-handling procedures

2. Coming up over or short in a cash drawer

3. Willful destruction or vandalism of company property or property of another employee

4. Theft or inappropriate removal or possession of company property or property of another

employee

5. Unauthorized use of company-owned money

HYGIENE AND SANITATION

1. Failure to follow sanitizing procedures

2. Failure to observe a clean workplace

3. Failure to dispose waste properly and timely

4. Chewing gum or eating in work areas

ATTENDANCE AND TIME OFF POLICIES

Attendance policies set rules and guidelines surrounding employee adherence to work schedules.
These define how employees may schedule time off or notify superiors of an absence or late
arrival. This policy also sets forth the consequences for failing to adhere to a schedule.

Anticipating sickness and other emergencies will not be possible all the time and may require
you to miss part of your workday or even worse, all of it.

You must inform your superior as soon as possible if you cannot report to work as scheduled.
Moreover, if the time off you need is foreseeable, you must provide notice in the earliest time
possible. If it is not foreseeable, on the other hand, you must notify your superior in no time less
than five (5) hours prior to your normally scheduled starting time.

Needless to say, if you cannot contact your supervisor yourself, you must have someone do it for
you, with the details of why you are unable to report to work, for how long you will be out, and
when you expect to return or arrive for work.
For absences of three (3) days or more due to illness, you must submit a documentation. In most
cases, you must provide a medical certificate from your doctor or other recognized health care
provider to justify your absence.

Unbridled absence or lateness and immoderate patterns of it may lead to disciplinary action
including termination of employment. Absence from work for three (3) consecutive days without
notice will be considered as a resignation from position.

1. Failure to report to work on schedule without prior notice

2. Conducting personal business without authorization during work hours, including but not
limited to the use of phone for personal reasons except in an emergency

3. Leaving the assigned work position or tasks without justified reason and permission

4. Taking breaks in the business premises without permission of the supervisor

5. Working on unassigned shift

6. Taking unauthorized breaks other than at assigned times

7. Failure to record time worked on the timekeeping system

C. COMMUNITY ACTIVITY
Sleeping Pods acknowledges that giving back to the community is a way of being thankful
towards the business’ good flow. It does not only show appreciation but also promotes
connection to the customers and brand loyalty. Not only that, it also takes part to movements
concerning the environment especially those that combats climate change and pollution.

Sleeping Pods’ main social responsibility is to give assistance to communities that are in need,
especially those who are victims of natural calamities to help them get back up from the
struggles they experience. Additionally, it will donate to some charities and orphanages that help
and support the homeless, poor, orphans, disabled, minorities and the oppressed, children and
adults alike. Likewise, it will involve itself in projects needing volunteers for the betterment of
the society and country.

Sleeping Pods also plans to help in maintaining the cleanliness of the environment. Furthermore,
rather than contributing to the waste production and improper waste disposal, it strongly aims to
minimize every waste and pollution the business will produce in the future. Although the main
idea in starting this business came from a foreign view, wherein the business background
originates from the Japanese capsule hotels, Sleeping Pods aims to show and encourage
everyone’s patriotism in every way possible showing our own cultural identity to both natives
and foreign in the country.

CHAPTER X1
 Development, Milestones and Exit Plan

A. LONG-TERM BUSINESS GOALS

Starting a business requires a mindset that tilts towards goal setting and achievement. Managing
it depends on the progress of the business as well. As such, it is a need for the owners to set long-
term goals to guide every step you take in the process of expanding their business. Regardless of
the foremost intention you have in mind, planning ahead of time by focusing on visions that are
more specific will provide aid in the future. 

The entrepreneurs involved aim to produce quality service with the intention to accommodate the
customer's financial and physical states. Sleeping Pods dedicates itself to striving towards the
realization of its long-term goals that provide guidance to the direction of the business. 

  - Balance Income and Expenses - keep the capital on rotation by maintaining a proper balance
between the amount of profit that comes into the cycle of the business and the amount of it that
goes to the expenses required. 

  - Increase Market - have at least 50% more customers in half a year. 

  - Positive Feedback - gain positive reviews from more than 90% of the customers. 

  - Branch out - have the business distributed to various locations other than the main branch. 

  - Attain Recognition - spread the name of the business through various methods (i. e. posters
and social media sites). 

  - Have a regular set of customers - maintain relationships and gain the loyalty of several
customers.
B. GROWTH STRATEGY

The entrepreneurs intend to perform in accordance with the vision of the business by utilizing a
variety of strategies regarding the growth and development of the enterprise. The strategies that
will be used can be divided into four programs:

 Technological Maintenance - The fundamental aspect of the Sleeping Pods business

lies in the comfort and convenience of the equipment. Proper maintenance of the
equipment to be utilized is a vital component of the business' growth in the long run.
Poor quality of facilities will induce negative impacts on the customer's feedback, and
consequently, the business' overall reputation. 

 Hygiene - Cleanliness reflects the business itself, as well as its owner. It implies how
much an entrepreneur values his or her customers and will serve as the representation
of the owner's respect towards them. In addition, hygiene is one of the aspects that
determine the quality of the workplace as well as the place of service. 

 Social Media Marketing - It is vital for a business to have a consistent, if not regularly
increasing number of customers. On regular days, it is common for business sales to
fluctuate depending on the occasion. Without proper marketing, it is almost certain that
the business will face a decline in profit. Social media, in this generation, is a medium
wherein people interact, regardless of location. It is due to the amount of the population
that makes use of it that it is a recommendable area to advertise the entrepreneurs'
products and/or services. With social media and adequate promotions, it is highly likely
that the business will gather more customers. 

 Staff Training - Your employees are the ones carrying the name of the business on their
shoulders. Their actions represent the business itself, and as such, it is a prerequisite
 that they are capable of handling customers professionally and with a suitable amount
of respect. Training your staff in the ways you wish for them to reflect your business is
imperative in order to have efficient employees that are skilled in areas surrounding
customer care and service.

C. MILESTONES

Sleeping Pods is a business that is relatively new. However, the entrepreneurs have their eyes set
on specific milestones with regards to the satisfaction of the customers and the expansion of the
business nationwide. 

Establishing Bonds with Customers

  - Keeping one's customers on their side comes with a variety of advantages: regular profit, for
example. Sleeping Pods intends to provide the customers with quality services and treatment to
express how much the entrepreneurs value their customers. 

Continuous Improvement in the Overall Status of the Business

  - A stagnant business is barely a business. This refers to keeping up with the world and
subsequently, adapting to the dynamics of the people’s needs and wants. 

Formulating a Market Strategy

  - Whether it's through the internet or through flyer distribution, it is necessary for a business to
be regularly promoted, in order to simultaneously maintain customers and garner new ones. 

D. RISK EVALUATION

TYPES OF RISK Risk Probability Steps to Reduce the Risk

High Medium Low

 Define the goals and

objectives that the
business aims to
achieve.

 Monitor the state of the

Strategic Risk market and the business

regularly.

 Abide by the rules and

regulations stated by
legal sources.

Compliance Risk

 Conduct routinely
assessments of
equipment and
facilities.

 Provide specific
Operational Risk instructions to the
employees with regards
to the advisable actions
to take in certain
situations.

E. EXIT PLAN

Contrary to popular opinion, an exit plan is not a negative result of the business venture.
Regardless of the reason behind the consideration of one, it is simple taking advantage of a
certain situation in order to obtain positive results. In other words, an exit plan lets the
entrepreneur gain his well-deserved profit from his business, and simultaneously have the
freedom to explore other areas and opportunities.

1) Liquidation of assets.

  - This refers to the decision of exchanging your assets for cash. It can be tangible, like a house
or a building, and also a property lacking physical form like business shares and stocks. This
option allows the entrepreneurs to either retool the business for a buyer to make better use of or
pay off obligations and start on a different page. This is a fast method to earn profit, but the
earnings may not be much compared to what is generated by other means. 

2) Gain profit through selling in the open market.

 - This pertains to putting up your business for sale for a specific price. If the business is doing
well, then it may be easy to find a buyer for the price the owner expects to have. If the state of
the business is mediocre, on the other hand, it will be considerably harder to meet someone who
is willing to buy it for the price the owner puts up. Furthermore, determining the value of a
business may become a difficult task. 

3) Merge or be acquired.

 - It is simply another term for selling your business to another. Oftentimes, anyone who is
interested is someone who has concluded that the business up for sale and his/her own have skill
sets that are beneficial to one another. People may also be willing to buy one's business in order
to curb competition, as well as gather data and contacts. 

4) IPO (Initial Public Offering).

  - This method allows the owners of the business to raise capital by conducting a sale of the
company's stocks to the general public. 

5) Pass the business to a family member.

  - This starts off a legacy and a family business that can be passed down for generations.
Keeping the business alive through the concept of heirs is a good way to achieve a smooth
transition in business. Additionally, the owner may also remain a part of the leaders of the
business despite relinquishing their initial position. This may provoke family infightings,
however, and the other shareholders may not accept such a system.