Charm-Esque: Online Service Appointment System

A Business Case

Presented to the Faculty of the

Computer Applications Department

Saint Louis University

Baguio City

In Partial Fulfillment of the

Requirements for the Course

General Information Technology

CAPISTRANO, Gener Mike M.

HADUCA, Kristy B.

LABRADOR, Christian Johann A.

NAPEEK, Hannah Grayle C.

RIVERA, Justine Renzo O.

SILVERIO, Daniel R.

YAMBAO, Denisse Aine E.

March 2022
 TABLE OF CONTENTS
COMPANY OVERVIEW ........................................................................................................................... 1
a. Company Profile .......................................................................................................................... 1
b. Mission of the Company ........................................................................................................... 1
c. Vision of the Company .............................................................................................................. 2
d. Organizational Chart .................................................................................................................. 3
Figure 1. Organizational Chart .......................................................................................... 3
e. Business Rules ............................................................................................................................. 3
f. Business Processes ..................................................................................................................... 4
g. Business Process Diagram/Flowchart................................................................................. 6
Figure 2. Business Process Diagram when Client asks for Nail Services .................... 6
Figure 3. Business Process Diagram when Client asks for Styling Services ............... 7
SYSTEM ANALYSIS ................................................................................................................................. 8
a. Problems Encountered .............................................................................................................. 8
b. Proposed Solution ....................................................................................................................... 9
c. Functional Requirements .......................................................................................................10
d. Non-Functional Requirements .............................................................................................11
e. Scope .............................................................................................................................................12
f. Delimitation.................................................................................................................................13
g. Feasibility .....................................................................................................................................13
i. Schedule .......................................................................................................................................13
Figure 4. Schedule.............................................................................................................14
ii. Technical......................................................................................................................................14
iii. Operational ................................................................................................................................15
iv. Economic/Cost Benefit Analysis ........................................................................................16
a. Return on Investment .....................................................................................22
b. Payback Period ...................................................................................................22
c. Benefits ....................................................................................................................23
i. Tangible ................................................................................................................23
ii. Intangible Benefit ............................................................................................23
PROPOSED SOLUTION MODELING .................................................................................................26
a. Decomposition Diagram .........................................................................................................26
 Figure 5. Decomposition Diagram of Charme-Esque ...................................................26
b. Context Diagram .......................................................................................................................27
Figure 6. Context Diagram of Charme-Esque ...............................................................27
c. Level 1 Diagram .........................................................................................................................28
Figure 7. Level 1 Diagram of Charme-Esque ................................................................28
d. Prototype ....................................................................................................................................29
Figure 8. Charm-Esque Sign-Up Page ............................................................................29
Figure 9. Charm-Esque Website Homepage 1 ..............................................................29
Figure 10. Charm-Esque Website Homepage 2 ............................................................30
Figure 11. Charm-Esque Website Homepage 3 ............................................................30
Figure 12. Charm-Esque Website Homepage 4 ............................................................31
Figure 13. Charm-Esque Website Homepage 5 ............................................................31
Figure 14. Charm-Esque Website Homepage 6 ............................................................32
Figure 15. Charm-Esque Services Offered.....................................................................32
Figure 16. Charm-Esque About Us Page ......................................................................33
Figure 17. Charm-Esque Appointment Form.................................................................33
Figure 18. Charm-Esque Payment Option ....................................................................34
Figure 19. Charm-Esque Successful Appointment .......................................................34
Figure 20. Charm-Esque Account Information .............................................................35
CONCLUSIONS AND RECOMMENDATIONS ..................................................................................36
BIBLIOGRAPHY ......................................................................................................................................38
APPENDICES ...........................................................................................................................................39
a. Interview Questions ....................................................................................................................39
b. Fishbone Diagram ........................................................................................................................40
Figure 21. Fishbone Diagram ..........................................................................................40
c. Creation of the Prototype ......................................................................................................41
Figure 22. Creation of Charm-Esque’s Prototype .........................................................41
 COMPANY OVERVIEW

a. Company Profile

Charm-Esque is a one-person corporation type of business. The business started

when Ms. Mrs. Y, the owner, sold her first salon named Salon Y when she migrated to

Australia. After selling it, she decided to put up her second salon named Salon Z in 2013

but instead of putting up a branch, she put up Company Charm-Esque as her third salon

in April 2017. The owner managed the business and kept it with only two employees at

that time. Now, the owner has thirteen employees; one senior stylist, two stylists, one

receptionist, one senior nail technician, four manicurists, one bookkeeper, one promoter,

one operations manager, and one marketing & financial manager. All employees are

trained professionally to provide high quality services. The business is located at the City

of San Fernando, La Union.

A year into the business, they need to face the greatest challenge in their business

which is competition. It was not easy but they needed to deal with it by making sure that

their regular customers are comfortable every time they visit. The company started with

only two services which are hair services and make-up services. However, because of the

regular customers they added other services like: manicure and pedicure. Moreover, the

salon can accommodate up to ten persons at a time.

b. Mission of the Company

Charm-Esque strives to create a relaxing environment and provide a friendly,

personalized service through a team of highly skilled and creative professionals. We aim

to constantly provide exceptional customer service with a cheerful, never-say-die

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approach while keeping everybody's budget. We offer creative hair, make-up, and nail

care services with keen attention to every detail that will raise their confidence and turn

heads and develop a sustainable start-up business contributing to increased employment

of community residents.

c. Vision of the Company

To produce the same outstanding quality results time after time. Charm-Esque is a

service type of business that is open for all, ensuring satisfaction, boosting confidence

that will bring out the best of the customers, and to be a well-known salon in the province.

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 d. Organizational Chart

Figure 1. Organizational Chart

e. Business Rules

Charm-Esque is a salon specializing in hair, make-up, and manicure & pedicure

services. Since it is a business that only revolves around an employee and a client, a

professional employee must accommodate the client to ensure quality with satisfaction

service. The goal of the business is to mold a team of fine and skilled professionals who

naturally practice harmonious relationships with the clients and with their colleagues. The

general working guidelines are to be friendly and polite, especially to the clients, to radiate

positivity and neglect negativity, and provide the best quality service

All the other employees should not meddle with the services that they are not

proficient in to have a systematic relationship. The Marketing and Financial Manager is

assigned to handle the receptionist/cashier, bookkeeper, and promoter since it deals with

the sales of the business. When it comes to all the services of the salon, Operations

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Manager is the one who will oversee all the professional stylists and nail technicians and

has the authority to terminate them if he/she feels that too many rules and regulations

have been violated.

The business accepts appointments and walk-in services. However, safety

protocols should be considered to avoid the infectious COVID-19. Proper hygiene, mask

and sanitation, and proper PPE are needed before performing the specific service. In

terms of cancellation and reschedules of appointments, the clients should inform the

salon beforehand to settle the planned appointment and for the salon to accept new

clients in the canceled appointment but if it is a late cancellation, it will be subjected to a

50% fee and the remaining value of the service/s will be transferred onto the salon credit.

A prepay policy will be implemented for all clients. They are required to put in a valid

credit card to book appointments. Moreover, late cancellation of the client will be charged

to his/her credit card and it is non-refundable.

f. Business Processes

The business process starts when the client sets an appointment or the client goes

to the salon located at San Fernando, La Union. The receptionist/cashier will decide if the

client’s appointment should be accepted or not. Afterward, the receptionist/cashier will

gather the information of the client and ask for the services he/she will take, a hair and

make-up service or manicure & pedicure service. Subsequently, the receptionist/cashier

will talk to the senior stylist and senior nail technician who will handle the client’s service.

Once the stylist or nail technician is selected and the information of the client is registered,

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the stylist or nail technician will escort the client to a particular seat then offer the

brochure/sample to the client to choose what design and style he/she wants.

Once the client is done with the service, the stylist or nail technician will accompany

the client to the receptionist/cashier to pay the corresponding amount of his/her chosen

service. After paying the service fee, the receptionist/cashier will be printing out two

copies of receipts – one for the client and the other one is for the salon’s record. At the

end of the day, the receptionist/cashier will create a daily report and after a month, the

Salon Owner will refer to the daily reports for the commission of each employee. The

commission of each employee will be based on how many clients they have catered to in

the whole month.

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g. Business Process Diagram/Flowchart

Figure 2. Business Process Diagram when Client asks for Nail Services

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Figure 3. Business Process Diagram when Client asks for Styling Services

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 SYSTEM ANALYSIS

a. Problems Encountered

Charm-Esque has upheld a remarkable service in the field of fashion and beauty ever

since it began its operation. However, the company's ability to transform and manifest

inner beauty inspired several salons to be built one after another within the locality of

San Fernando, La Union. Eventually, Charm-Esque's ever-rising fame and profit were

affected by the fierce competition in the market. Moreover, it was discovered that aspects

within the company contributed to the slow decline of Charm-Esque's performance

against its competitors. After a thorough assessment, the company found out that the

compromises of this industrial competition and other related micro-problems have

become the company's greatest stagnating agent, preventing further growth and

development.

The growth of the fashion industry diversified the services and features offered by

different companies, resulting in the dispersion of sales due to the massive number of

options. While it was beneficial for the community to have investors around (Robbins,

2021), the company that felt this most was Cham-Esque. Still, the company has been

performing a little less satisfactorily given that sales decreased because of competition.

Aside from the company's environment, another problem discovered was with the

workforce. Despite being highly skilled and well-trained, the employees needed to

improve work enthusiasm and social skills to engage the customers. Also, a full-staff

operation can cater up to ten customers at once, which points out to a low-productivity

rate given that there are adjustments that can be done to increase the number of

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customers without increasing the intensity of the work. Another related hassle was

catering to too many services at once, leading to unorganized workflow and workspace.

This can also be prevented without further compromising the profit. Lastly, the reason

why Charm-Esque has been performing poorly against its competitors is its lack of

marketing strategies. Not only did the company lose local customers, but it also hasn't

excelled in foreign sales by attracting tourists and non-locals to avail of the services

offered by the company; the website is inactive and social media accounts are not

engaging enough. The system of scheduling appointments efficiently between the

customers and the stylists also needs calibration.

With this, Charm-Esque operates in a less efficient manner than its competitors. Thus,

losing profit.

b. Proposed Solution

Since the risk of competition cannot be eliminated, the best remedy for the company

is to put up a fight and maintain good performance to prevent further loss of customers.

For that, a fully-functional e-marketing scheme should be implemented in the form of a

website. This website will also serve as a communication medium for scheduling an

appointment and contacting a customer's preferred stylist, which could be an additional

feature of the company. This e-marketing system will organize the customers'

appointments concerning their preferred services so the workplace would be more

organized. With this, the optimum work schedule can be maximized more frequently for

a more efficient workflow. For instance, customers who require quick-paced services can

be accommodated within the waiting intervals of customers who avail of services

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requiring long waiting times. Moreover, the workplace can be prepared beforehand with

the expected services in mind so the workflow will be smooth, clean, and efficient. This

will give time for the employees to socialize and build a more personal relationship with

the customers. It could expand the company's target market to potential customers

outside San Fernando, La Union.

In addition, the Charm-Esque website would contain interactive features like

consulting with preferred stylists about treatments and service customizations as long as

customers are logged in to their respective accounts. It will contain downloadable

brochures and handouts about the company and employees' profiles, achievements, and

credentials. Lastly, promos and discount vouchers can be offered on a membership and

loyalty basis through the customers' account information, so the regulars would be given

a reason to continue their patronage.

Charm-Esque's website could be both an advertising platform and a customer care

medium to maintain good relationships with the current regulars and attract potential

new customers or even investors. With this, the internal problems would be solved, and

Charm-Esque would continue its operation with the assurance of stable sales under the

fierce competition.

c. Functional Requirements

The said website will serve as both an advertising platform, a customer care medium

as well as an online booking system. A user is required to register in order to login which

means basic information is to be gathered in order to be accessed. For the schedule-

appointment of the customers, the booking system proposed by Charm-Esque functions

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to provide customers with a more efficient and convenient way to make bookings,

including basic information and the services they need. These information can be used

as a guide for the employees as well as for the customer’s future visit. Charm- Esque is

open to anybody looking for a sense of fulfillment, a boost in confidence, or to bring out

the best in themselves through easy-access services by the booking system. That is one

of the reasons why gathering of basic information as well as a tailored customer care

medium should be provided. It assists clients in expressing their preferences for the type

of services they need, their preferred stylist, as well as how they want their service to be

delivered. With this, the system won’t only provide accessibility, convenience, and ease

for the customers but also speed up and organize Charm-Esque’s business workflow.

d. Non-Functional Requirements

In terms of non-functional requirements, this fully-functional e-marketing scheme in

a form of a website ensures minimum effort for online booking. Due to the limited capacity

of up to ten consumers at a time, scheduling is crucial. Therefore, an easy-access booking

system is proposed so that the customers can appoint a schedule with minimum effort.

For further queries, the website also provides customer service through inquiry calls and

email provided in the website.

The website for online booking can be accessed through any device which supports

the use of browsers. It has a basic design with maximum given information in order to

promote practicality for everyone without the lack of information needed. The company

will also need to gather customers’ basic information, their date and time of schedule,

and also their desired service through an appointment form in the website. Information

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gathered through the booking system is kept in the company's database for greater

security and organization. This also helps to ensure that consumers do not have to wait

a set period of time before receiving treatment. Instead, once they enter the salon, they

are assured that it will be their turn, avoiding dissatisfaction and unwanted confrontations

among personnel and customers which serves as the system’s scalability. With these, it's

apparent that customer pleasure is Charm-Esque's main focus by the use of a reliable

and an easy-access system.

e. Scope

The study’s primary objective is to implement an enhanced system that will increase

the potential customers of Charm-Esque and address the tough competition of the salon

to its competitors. The proposed system is a website that provides setting up

appointments of the customers and their chosen stylist, consultations from a skilled

stylist, and tracking of reports and feedback of the customers. In addition, it also includes

payment transactions that can offer promos and discount vouchers, membership for loyal

customers, and merchandise like nail polishes, accessories for hair cutting and coloring,

and makeup kits. The system is classified as Charm-Esque website that will provide

updates to the said proposed system. This allows to increase the efficiency and

performance of staff and to monitor up-to-date records of the salon that will put an edge

on the customers.

The study intends to address the issues that salon encounters, unorganized records,

fierce competition in the market, low productivity rate, and slow growth and development.

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The benefits of Charm-Esque website are higher productivity, more sales and potential

customers, and faster transactions all within a single system.

f. Delimitation

The management system has limitations including some actions of reliance and

reliability to human entry. Additionally, the calculation of charges to the services provided

is not involved in the system. Another limitation is having a different style of a chosen

service that the customer wants. The system cannot provide any suggestion unless it is

asked directly to the staff. Hence, it is advised for the customer to contact the salon

directly to know what he/she wants.

g. Feasibility

i. Schedule

Planning, analysis, design, implementation, and maintenance are all components of

system development. For organized planning of the new Charm-Esque’s website, the

figure below will show the timetable of the project to be completed within the time

limitations specified.

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 Figure 4. Schedule
ii. Technical

Charm-Esque will need to consider the technical resources required when

developing and upgrading to a new system. This includes a web-based system that is

accessible to all internet users. The company will need a complete PC set to run the

information system. This set includes a monitor, a computer processor, a mouse, and a

keyboard. These components will be used to input, process, and output data that will be

used to operate the company's online service appointment system. It also needs system

software that manages the computer system's resources. This includes the operating

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system, database management systems, networking software, applications, and software

utilities, all of which are stored and executed by the computer hardware.

The Internet is the primary tool for this new web-based system and the company

will then have to pay monthly internet connection plans to sustain the online system's

processes. In order to ensure the new web-based system's effectiveness, Charm-Esque

will need to hire a system developer to supplement the company's current staff of

thirteen. In order to maximize the use of the web-based system, however, training and

orientation of the employees in the proper use of technology are required. With the new

web-based system, the Charm-Esque will be able to better market itself to the general

public and allow customers to book appointments online.

iii. Operational

The e-marketing plan of creating an exclusive website for Charme-Esque is a

system to keep clients and attract more customers. In an enhanced technological age, it

would reach out to a broader market setting. The online platform is a channel for

appointment scheduling that manages a systematic flow of activity in the salon. Clients

scheduling in advance determine their availability, saving more time and effort.

Accordingly, it requires less hassle for the customer in which they would enjoy the most

of the salon's cordial customer service and cozy environment. It is a method that meets

the clients' best interest, which is the most convenient for both them and the employees.

For other service offers, customers can seek them at the website. The site contains

the company's essential details, features, and items and a directory for a platform of

direct contacting that would answer the customers' specific queries. It is an online

15
medium advantageous for marketing that notifies current and potential clients. The

internet "offers prestige to a business, improves brand visibility and increases the

confidence of potential customers in the company's offer" (Apavaloaie, 2014). It allows

interaction from outside the locality, an opportunity to acquire customers at a more

expansive range. The website is a marketing system to perform other strategies. It

attracts clients to the company's services and gains more customers to develop the salon's

competitiveness in the industry.

iv. Economic/Cost Benefit Analysis

To see the cost-benefit analysis of the proposed system:

COST OF THE NEW RESERVATION BENEFITS

SYSTEM
System The average cost Php 133,860
development and Php 41,000 incurred by the
Installation current system
System Php 3,000 Projected costs Php 57, 400
maintenance incurred by the
Utilities Php 4,500 proposed system
Salon Desktop Php 21,500
TOTAL COST Php 70,000 BENEFITS Php 76,460

For a more detailed computation of the cost of investment

System development- To build and develop a suitable reservation system for Charm-

Esque Salon. The salon will hire a system developer Accenture Software Developers

Company. This company requires the developers to be paid with an amount of Php

12,000/month. However, since the company is a pioneering company, the company

agreed to pay for 3 months. According to the agreement between the system developer

16
and the company, the rate of the system shall depend on the number of hours the

developer worked on building the system.

Php 75 (hourly rate) x 8 hours per day

= Php 600 per day
Php 600 per day x 5 days a week
=Php 3,000 per week

Php 3,000 per week x 4 weeks a month

=Php 12,000 a month
Php 12,000 x 3 months= Php 36, 000
or
Php 4,000 per week x 12 weeks = Php 36,000
Price Reference: https://www.glassdoor.com/Salaries/manila-software-developer-
salary-SRCH_IL.0,6_IM995_KO7,25.htm

System Installation- This process depends on the number of workers hired to install

the system and examine its effect and suitability on the company’s operations.

Number of persons= 1
X Payment per day = 1000
Number of days= 5 working days
= Php 5,000
Total System Development and Installation is Php 41,000

System Maintenance- This is necessary to keep the system updated with features that

will double the performance of the salon’s operation. According to WebFX, monthly

system maintenance starts at 5 USD monthly. This, when converted to Philippine Peso,

17
amounts to approximately Php 250. The monthly rate for the maintenance for the

reservation system of Charm-Esque Salon is agreed to be Php 250.

When computed yearly

Php 250 x 12 months= Php 3,000
Total System Maintenance paid for 1 year is amounting to Php
3,000
Price Reference: https://www.webfx.com/web-development/pricing/website-
maintenance/

Utilities- To compute for the total amount paid under utilities, especially that electricity

is used throughout the system development, LUELCO’s standard Php 9.0867/kWh for

their commercial customers is used.

Php 9.0867/kWh x 8 hours= Php 72.6936 per day

Php 72.6936 per day x 5 working days a week= Php 363.468 a week
Php 363.468 a week x 12 weeks= Php 4361.616 rounded to Php 4,500
Power Rate Reference: https://www.luecoinc.com/

Salon Desktop- This is needed by Charm-Esque Salon to efficiently utilize the

reservation system. The salon bought an Acer desktop and monitor bundle.

Acer Aspire XC-830

-Desktop + Monitor bundle
-Intel Pentium Silver Processor J5040
-4 GB RAM and 1TB Hard Drive storage Php 21,500
-Acer EB192Q 18.5" monitor
-2 years warranty
Price Reference: https://store.acer.com/en-ph/aspire-xc-830
The total cost or investment on the new reservation system of Charm-
Esque Salon is
Php 70,000

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 AVERAGE COSTS OF THE CURRENT SYSTEM

COSTS (Yearly) PRICE (Php)

Office supplies Php 21,860
Utilities Php 100,000
Prepaid-card load Php 12,000
TOTAL AVERAGE COSTS Php 133,860

Office supplies- Since the current system uses pen and paper for the reservation of

customers, a great number of office supplies are used yearly

Bond papers supplied by Little Town School and Office Supply costs Php 200 per
ream.
Php 200 x 3 (number of reams used per month) = Php 600
Php 720 x 12 (yearly cost) = Php 8,640
Price Reference: https://www.lazada.com.ph/products/1-ream-hard-copy-bond-
paper-size-a4-substance-20-70-gsm-ultra-white-i113463838
s467378691.html?laz_trackid=2:mm_150060774_51201795_2010251772:
clkgg291d1ft7r0cfsijos&mkttid=clkgg291d1ft7r0cfsijos

Record books supplied by Opisina costs Php 100 each.

Php 100 x 2 (number of record books used per month) = Php 200
Php 200 x 12 (yearly cost) = Php 2,100
Price Reference: https://www.opisina.com.ph/products/notebooks-pads/record-
books/avantage-record-book-500p

HBW Matrix Ballpen supplied by Paints and Pens costs Php 190 for a set of 50
pieces. In a month a company makes use of 3 sets as it has a strong demand due to
the pen-and-paper filing.
Php 190 x 4 (number of sets used per month) = Php 760
Php 760 x 12 (yearly cost) = Php 9,120
Price Reference: https://www.lazada.com.ph/products/hbw-matrix-retractable-pen-
50pcs-
i1650854607s7096158445.html?laz_trackid=2:mm_150060774_51201795_20102517
72:clkgk22ju1ft7rlrtcn87i&mkttid=clkgk22ju1ft7rlrtcn87i

Additional office supplies (scissors, stapler, staple wires, pins) = Php 2,000 yearly

Total Office Supplies: Php 21,860

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Utilities- As a salon that consumes numerous lights, faucets/showers, air-conditioning,

high-tech salon equipment, and many tools that require power for continuous service to

its customers, Charm-Esque Salon is projected to have an annual utility bill of Php

100,000.

Prepaid Load- It is needed every week for continuous service because the salon

depends on text messages and phone calls for reservation and contact with its clients or

customers.

Php 250 load per week x 4 weeks (1 month) = Php 1,000

Php 1,000 x 12 months = Php 12,000

The total cost of the current system is Php 133,860

To compare the projected costs to be incurred when using the reservation system:

AVERAGE COSTS OF THE CURRENT SYSTEM

COSTS (Yearly) PRICE (Php)
Office supplies Php 5,000
Utilities Php 35, 000
Prepaid load Php 3,000
WIFI Php 14,400
TOTAL AVERAGE COSTS Php 57,400

Office supplies- Since the reservation system already processes the necessary

information from customers when they avail themselves of service, this salon will utilize

fewer pen and paper materials.

Estimated annual costs for office supplies is Php 5,000

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Utilities- Since the reservation system allows staff to conserve phone or laptop batteries

and customers to avail themselves of service from sitting at home. The salon will save

money since less power will be used for the entertainment and satisfaction of clients who

are supposed to wait in line.

Estimated annual costs for utilities is Php 35,000

Prepaid load- Since the reservation system would be less reliant on text messages and

phone calls from customers and staff, a lesser load will be necessary. Customers with

unstable Internet connections and those who are unable to access the reservation system

online will only receive text messages and phone calls.

Estimated annual costs for office supplies is Php 3,000

WIFI- Since Charm-Esque already utilizes a reservation system, a stable internet

connection is necessary to maintain the function of the system. The salon subscribes to

Converge Fiber X which costs Php 1,200 a month.

Estimated annual costs: Php 1,200 x 12 months

= Php 14,400

Total projected incurred costs in the new reservation system is Php 57,400
To get the benefit or the save costs:

Php 133,860 (The average cost incurred by the current system)

- Php 57.400 (Projected costs incurred by the proposed system)
Php 76,460 is the benefit or the profit.

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 a. Return on Investment

To compute for the Return on Investment (ROI), the net profit composed of the

revenue minus the cost should be divided by the total investment multiplied by 100%.

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
Return on Investment = × 100 %
𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

Net Profit = Revenue – Maintenance and Costs

Net Profit = Php 76,460 (Profit) - Php 61,000 (Projected costs to be incurred in the
proposed system)
Net Profit = Php 15,460
𝑃ℎ𝑝 15,460 (𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡)
Return on Investment = × 100 %
𝑃ℎ𝑝 70,000(𝑇𝑜𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)
= 0.22 × 100 %
Return on Investment = 22 %
The Return on a Php 70,000 Investment is 22 %

b. Payback Period

The cost of investment in the new online information system is Php 70,000. The

computed annual earning, on the other hand, is Php 76,460 while the projected annual

cost to be paid in utilizing the new online system is Php 61,000. To compute for the

payback period, the initial investment is to be divided by the annual net cash inflow. To

get the annual net cash inflow, annual cash outflow is subtracted from annual cash inflow.

𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
Payback Period = 𝐴𝑛𝑛𝑢𝑎𝑙 𝑁𝑒𝑡 𝐶𝑎𝑠ℎ 𝐼𝑛𝑓𝑙𝑜𝑤

Annual Net Cash Inflow = Annual Cash Inflow - Annual Cash Outflow
Php 76,460 (Annual cash inflow) - Php 61,000 (Annual cash outflow) = Php 15,460
(Annual net cash inflow)
𝑃ℎ𝑝 41,600 (𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡)
Payback Period = 𝑃ℎ𝑝 15,460 (𝐴𝑛𝑛𝑢𝑎𝑙 𝑁𝑒𝑡 𝐶𝑎𝑠ℎ 𝐼𝑛𝑓𝑙𝑜𝑤)
Payback Period = 2.69 years or 2 years and 8 months
It will take 2 years and 8 months before the company recovers its
investment.

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 c. Benefits

i. Tangible

From the previous sections, the benefits of the proposed system have been given

emphasis. This part of the paper elaborates more on the benefits discussed specifically

the tangible ones.

Average costs incurred in the current system and projected costs incurred in

the new online information system- This computation measures how costs and

expenses are saved once the online information system has already been installed. From

the previous sections, the current system had a total cost of Php 133,860 while the

newly installed online system amounts to a lesser cost of Php 76,460.

To compute for the benefit:

Php 133,860 (The average cost incurred by the current system)

- Php 57.400 (Projected costs incurred by the proposed system)
Php 76,460 is the tangible benefit.

ii. Intangible Benefit

Effective accommodation. The salon can accommodate ten clients, more than enough

for the eight stylists, manicurists, and pedicurists. According to Hallberg, the average

hairstylist customer in a day is 6-10 (2020). With more space available, the flow of activity

in a busy day would operate smoothly and be advantageous to comprise more than the

average. Through the proposed system, the organization of accommodating clients at

23
every slot at a time maximizes the advantage of capacity. Ensuring a smooth flow of

activity in the salon is made possible by the website.

Company image. High-quality service is assured to clients. Employees are professionally

trained, developing the skills to guarantee customer satisfaction. Relative to the

accommodation, the stylists efficiently cater to the extra spaces in total capacity. On that

account, customer appraisal will improve and promote the business image. The website

gives a chance to customers to review the services online and further share their

experiences for both the image and self-improvement.

Productive employee-client engagement. The systematic online arrangement

allows more clients to be entertained in line with the accommodation. Because workflow

would be efficient, more clients could enter in a day but still enjoy the luxury of a stylist

attending to them with the utmost attention. It benefits the customer's satisfaction by

maintaining a good relationship with them that publicizes the salon.

Increased connectivity. Utilizing the website that finds more potential clients enables

distance interaction. Aside from being more accessible to many, it gives more freedom to

visit the salon online at any time. Apavaloaie says a presence online assures customers

that they are not engaging with a substandard company (2014). The site presents what

the company offers creatively, attracting more customers and paving the way to

competitiveness.

Increased customer satisfaction and loyalty. The online website for the

appointment scheduling and service-offers browsing of the customers is easier and faster.

It is a more productive way of ensuring the clients' interests and not losing their patience.

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Customers receive more satisfaction in an efficient treatment, meeting their standards

and possibly keeping them as the salon’s habitual customers.

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 PROPOSED SOLUTION MODELING

a. Decomposition Diagram

Figure 5. Decomposition Diagram of Charme-Esque

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b. Context Diagram

Figure 6. Context Diagram of Charme-Esque

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c. Level 1 Diagram

Figure 7. Level 1 Diagram of Charme-Esque

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d. Prototype

Figure 8. Charm-Esque Sign-Up Page

Figure 9. Charm-Esque Website Homepage 1

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Figure 10. Charm-Esque Website Homepage 2

Figure 11. Charm-Esque Website Homepage 3

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Figure 12. Charm-Esque Website Homepage 4

Figure 13. Charm-Esque Website Homepage 5

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Figure 14. Charm-Esque Website Homepage 6

Figure 15. Charm-Esque Services Offered

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 Figure 16. Charm-Esque About Us Page

Figure 17. Charm-Esque Appointment Form

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 Figure 18. Charm-Esque Payment Option

Figure 19. Charm-Esque Successful Appointment

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Figure 20. Charm-Esque Account Information

35
 CONCLUSIONS AND RECOMMENDATIONS

The implementation of the e-marketing system benefitted Charm-Esque in terms

of sales and business processes. The website enabled exposure by reaching out to a more

comprehensive target market that included foreign and non-local customers. Thus, the

company has catered more customers than expected since the system was launched.

Moreover, the new customers were given free registration to the website for the system

subscription to encourage them to continue availing the services of Charm-Esque. This

paved the way for Charm-Esque to regain sales and compensate for the previous loss of

profit because of the competition. In addition, the system added value to service quality

and customer care services of the company to avoid further losses from the newly-

registered customers. The customers systematically set appointments through the

website, and the system pairs the customers' schedules with their desired stylist to follow

their preferences as much as possible. Aside from this, the system also eases the

workflow and the workspace since it sets appointments with consideration to the time,

space, materials, and complexity of the services required by the customers.

Consequently, the productivity rate of the employees drastically increased as they can

already perform at optimum quality at any time of the day.

Charm-Esque gains new customers and a broader target market through web

advertisements. Then, they were given top-tier experience from setting the appointment

to the quality of service and the transparency in transactions. With that, the casualties in

terms of sales were compensated, and further damage from customer relations was

prevented because of the system.

36
 However, despite the success and compatibility of the system to the company,

Charm-Esque has been eyeing to implement significant improvements in the website. For

instance, the company can legally partner with other financial companies to enable third-

party payment gateways to mediate between transactions. This will add to the customers'

payment methods. With this, Charm-Esque can then launch their online store inside the

system where exclusive Charm-Esque products and merchandise can be availed for an

additional source of funds. The addition of an online shop is believed to promote the

website not only to those who need the services but also to those who need the products.

The proposed system is a website that gathers and stores information, upon which

threats from the internet suggest website security systems. Customers' trust is essential

to make or keep them interested. The security system will make them feel secure in

accessing the website and making an appointment. Likewise, consequential complications

in the website information system will be avoided. For future revisions, a "Web Help Desk"

is recommended. To satisfy specific concerns of potential clients, a simple Live Chat

Widget is a start. It allows customers to communicate with service personnel at the

website in real-time.

Other recommendations include using multiple strategies through the system to

gather feedback from customers to further improve the operations of Charm-Esque.

Lastly, a more defined set of qualifications and processes must be added to the system

to convert customers' newly-registered accounts into that of a regular customer’s for

more specific income monitoring and for other premium benefits.

37
 BIBLIOGRAPHY

Apăvăloaie, E. I. (2014). The impact of the internet on the business environment.

Procedia Economics and Finance, 15, 951–958. https://doi.org/10.1016/s2212-

5671(14)00654-6

Hallberg, J. (2020, July 31). How many clients does a hair stylist have a day? The Salon

Business. https://thesalonbusiness.com/how-many-clients-a-stylist-

have/#:%7E:text=The%20average%20number%20of%20clients,you%20can%2

0do%20about%20it.

Kienapple, B. (2020, August 13). Website Marketing for Small Businesses: The Ultimate

Guide. Venngage. https://venngage.com/blog/website-marketing/

Robbins, M. (2021, April 12). The Important Difference Between Positive and Negative

Competition. Mike Robbins Blogs. https://mike-robbins.com/the-important-

difference-between-positive-and-negative-competition/

38
 APPENDICES

a. Interview Questions

1. How does Charm-Esque accommodate the preference of the customers in terms of:

a. operating hours;

b. social interaction; and

c. workforce alloted for the most availed services?

2. How does the attitude of the employees contribute to the everyday performance of

Charm-Esque?

3. In what ways does Charm-Esque integrate its mission of creating employment

opportunities in its locality?

4. What aspects of Charm-Esque preserve the patronage of the regular customers?

5. How can these aspects be manifested as promotional devices to attract more potential

regulars in the future?

6. What are the micro marketing and developmental strategies of Charm-Esque to

maintain good profit despite the competition?

7. In what ways do these micro strategies contribute to achieving more extensive goals

for the company's vision?

8. How does Charm-Esque approach outside opportunities for growth and development?

9. What are the most prominent weaknesses of the company and how can Charm-Esque

manage each to elevate service quality and profit?

10. How does Charm-Esque compensate for the industrial compromises brought by the

competition in the market?

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b. Fishbone Diagram

Figure 21. Fishbone Diagram

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c. Creation of the Prototype

Figure 22. Creation of Charm-Esque’s Prototype

41