Jaypament 1

A BUSINESS POLICY PAPER FOR SHEMASSAGE
A Proposed Business Policy Paper

Presented to the Faculty of
School of Graduate and Professional Studies
University of Pangasinan - Phinma
Dagupan City
In Partial Fulfillment
of the Requirements for the Degree
MASTER IN BUSINESS ADMINISTRATION
By:
RELENE SHEMA DISPO SALAZAR
March 2023
CERTIFICATION OF ACCEPTANCE OF BUSINESS POLICY PAPER
This is to certify that we have read the business
policy paper of RELENE SHEMA D. SALAZAR entitled,
“SHEMASSAGE”. She defended the same before an Oral
Examination Committee on March 16, 2019. The committee found
the business policy paper acceptable and has successfully
passed the Oral Defense.
PINA T. COCHANGCO, DBA

Business Policy Adviser
(NAME) (NAME)
Member Member
Business Policy Paper

ii
CERTIFICATE OF ADMISSION TO CANDIDACY FOR THE MASTER IN
BUSINESS ADMINISTRATION
This is to certify that RELENE SHEMA D. SALAZAR was
admitted to candidacy for the degree Master in Business
Administration as of March 27, 2023 after passing the
Comprehensive Examination in her Basic, Concentration and
Cognate Courses.
JOSEPH RICHARD O. MEJIA, Ed.D.

OIC - Director
School of Graduate
and
Professional Studies

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ACKNOWLEDGMENT
The proponent would like to acknowledge with profound
gratitude and sincere appreciation the following people who,
in one way or another, shared their utmost personal
professional assistance and untiring services that made this
study a priceless reality:
NAME, Faculty member of School of Graduate and
Professional Studies and adviser in this business policy
paper for sacrificing her time in guiding, providing,
suggesting and encouraging the researcher, her
insurmountable effort, helpful ideas and advices and
contribution to the planning and completion of this paper;
Professional Studies and Panel Member for her satisfaction,
helpful ideas, pieces of advices and valuable time and
effort to finish this paper;
Professional Studies for sharing ideas to researcher on how
to make a good business policy paper;
Respondents, for their overwhelming cooperation and
honest responses in answering the questionnaires;
MBA Students, especially the proponent’s classmates in
Master in Business Administration for their generosity in

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giving pieces of advices and inspiration to make this study
possible;
And above all, to the LORD ALMIGHTY, for giving the
researcher patience when they are about to give up,
strengths and wisdom when she asked for the way out, love
that filled her passion which made her hold on. To all,
thank you so much.
The Researcher

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DEDICATION
This business policy paper is lovingly dedicated to
researcher’s FAMILY who always there to support her during
hardships and obstacles that cross along her way. With that
simple way it helps her to be strong and to become
successful as time goes by towards the near future.
The Researcher

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TABLE OF CONTENTS
PRELIMINARIES Page
Title Page . . . . . . . . . . . . . . . . . . . i
Certification of Acceptance
Of Business Policy Paper . . . . . . . . . . . . ii
Certificate of Admission to Candidacy for

the Master in Business Administration . . . . . iii
Acknowledgement . . . . . . . . . . . . . . . . iv
Dedication . . . . . . . . . . . . . . . . . . vi
Table of Contents . . . . . . . . . . . . . . . vii
Executive Summary . . . . . . . . . . . . . . . xvi
Chapter 1 COMPANY PROFILE
Business Name . . . . . . . . . . . . . . . . . 1
Business Offering . . . . . . . . . . . . . . . 3
Unique Quality . . . . . . . . . . . . . . . . . 3
Location . . . . . . . . . . . . . . . . . . . . 4
Strategic Analysis of the

Company and Its Business . . . . . . . . . . . . 4
Chapter 2 CHALLENGES
One of the Workforce . . . . . . . . . . . 6
Customer Retention and Loyalty. . . . . . . . . 6
Corporate Social Responsibility . . . . . . . . 7
Chapter 3 MARKETING ANALYSIS

vii
Target Market . . . . . . . . . . . . . . . . . 10
Page
Demand Analysis . . . . . . . . . . . . . . . . 12
Demand and Supply Analysis . . . . . . . . . . . 12
Survey Analysis . . . . . . . . . . . . . . . . 14
Market Positioning . . . . . . . . . . . . . . . 30
Market Segmentation . . . . . . . . . . . . . . 31
Marketing Plan . . . . . . . . . . . . . . . . . 32
Chapter 4 SERVICES AND OPERATION MANAGEMENT
Legal Requirements . . . . . . . . . . . . . . . 35
Organizational Cost . . . . . . . . . . . . . . 36
Materials . . . . . . . . . . . . . . . . . . . 36
Capitalization . . . . . . . . . . . . . . . . . 40
Manpower . . . . . . . . . . . . . . . . . . . . 40
Process Planning . . . . . . . . . . . . . . . . 41
Materials and Equipment Handling . . . . . . . . 46
Maintenance Management . . . . . . . . . . . . . 46
Waste Management . . . . . . . . . . . . . . . . 46
Chapter 5 Human Resource Management
Business and Organizational Structure. . . . . . 50
Personnel Plan . . . . . . . . . . . . . . . . . 51
Hiring Process . . . . . . . . . . . . . . . . . 58
Compensation and Benefits . . . . . . . . . . . 59

viii
Orientation . . . . . . . . . . . . . . . . . . 60
Page
Operational Policies . . . . . . . . . . . . . . 60
Chapter 6 FINANCIAL ANALYSIS
Major Assumption . . . . . . . . . . . . . . . . 62
Initial Investment . . . . . . . . . . . . . . . 63
Projected Statement of
Financial Performance. . . . . . . . . . . . . . 63
Financial Position . . . . . . . . . . . . . . 63
Cash Flow . . . . . . . . . . . . . . . . . . . 64
Change in Owner’s Equity . . . . . . . . . . . 64
Notes to Financial Statements . . . . . . . . . 65
Return On Investments. . . . . . . . . . . . . . 67
Net Present Value . . . . . . . . . . . . . . . 67
Payback Period . . . . . . . . . . . . . . . . . 68
Leverage Ratio . . . . . . . . . . . . . . . . . 69
Liquidity Ratio . . . . . . . . . . . . . . . . 69
Chapter 7 PESTLE AND SWOT ANALYSIS
PESTLE Analysis . . . . . . . . . . . . . . . . 70

ix
SWOT Analysis . . . . . . . . . . . . . . . . . 72
Chapter 8 STRATEGIC PLAN
Marketing Objective . . . . . . . . . . . . . . 73
Page
The Ansoff Matrix . . . . . . . . . . . . . . . 74
Market Penetration . . . . . . . . . . . . . . . 75
Market Development . . . . . . . . . . . . . . . 75
Product Development . . . . . . . . . . . . . . 76
Diversification . . . . . . . . . . . . . . . 76
Chapter 9 COONCLUSION/COMPELLING STRATEGY . . . . . . 77
Chapter 10 RECOMMENDATION/ACTION PLAN . . . . . . . . 81
BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . 85
CURRICULUM VITAE . . . . . . . . . . . . . . . . . . 110

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xi
CHAPTER 1
BUSINESS PROFILE
Business Concept
Masulosyonan or maiwansa nag mga sumusunod na problema:
Mahabang Pila,abot hangang labas na pila, Kulang ng upuan
sa facility, Lunch Break sa mga Private or Commercial
Business Establishment, Minsan may masungit na Guard or
Teller, Mabahong Katabi sa pila, Closed sa Weekends and
Holidays.
Makapag avail ng mga sumusunod.
*Business Loan
*Personal Loan
*Invest
*Insurance
*Rewards
*GForest – Makatulong sa Nature
Madaling gamitin
Malawak ang tagert market (from 7years old and above at
Nationwide and Internal transaction)

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Business Name
Business Logo
Services Offered
Pay Bill
*Electric Bill
*Water Bill
*Cable
*Internet
*Telecoms
*Credit Cards
*Loans
*Government
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*Insurance
*Transportation
*Reals Estate
*Healthcare
*Schools
*Others
Load
* Globe
* Tm
*Gomo
* Cherry Prepaid
* Smart
* TnT
* Dito
Cash In & Cash Out
Bank Transfer

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Unique Quality
One of the unique qualities of SHEMASSAGE is its
signature massage which is the hilot or the Traditional
Massage of Filipino It is the traditional way of healing and
practice by our Filipino ancestors and continuously thriving
to this day. If fact, this practice is known around the
world, as cited by Calvert (2022) in the book titled “The
Healing Hands of Hilot: Filipino Therapeutic Massage”, the
technique used in hilot is very similar to Indonesia's
massage practices "such as strokes which move away from the
heart, sideways rubbing or going across the muscle fibers,
and the principles and functions of the channels." Coconut
oil has always been the choice for hilot even during the
ancient times.
Also, SHEMASSAGE offers on call, out call or onsite
massage whether it is for an individual or for a group or
entire corporation where all employees can avail themselves
of the massage services.

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All clients, whether group or individuals can book
their schedule through the company’s website, phone call,
text, or chat. Lastly, SHEMASSAGE’s unique service is its
massage therapists; they are all trained and licensed that
will take the clients’ blood pressure and pulse rate and
consider their medical history before conducting the
requested massage service.
Business Structure
Relene Shema Dispo Salazar, the proponent of this
Business Policy is the sole proprietor of the business. A
massage team will be hired consisting of massage therapists
accredited by TESDA, a receptionist who will also serve as
the bookkeeper, and the cleaner.
Business Location
SHEMASSAGE will be placed in Dagupan City, the business
capital of Pangasinan Province. Specifically, it will be
located on the Grand floor, Lyceum-Northwestern University,
A.B. Fernandez Avenue, Dagupan City, Pangasinan, 2400. The
Proponent chose this location for the following reasons:
first, accessibility in the market, if the SHEMASSAGE will
be needing anything such as materials or products which need
for business and service operation, the management can
easily get or purchase it; second, lot of establishments are

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also be located in the area, such as Schools, Terminals,
Museum, Police Station, Town Plaza, Department Stores,
Church, and other Local Government offices; and the business
operation in this area of Dagupan is 24 hours, because the
Fish port is also located here.
The proponent is certainly sure that SHEMASAGE will not
be getting zero clients in a day, not to mention the
majority of the people coming into this area, especially at
the night are the people who are businessmen and workers
that works a hard labor type of jobs; which is, they are the
sort of people who often avail the kind of massage services
offer by SHEMASSAGE.
Figure 2. Vicinity Map
Figure 2 above illustrates the vicinity of SHEMASSAGE,
it is in front of Dagupan Museum, across of City Plaza, a 2
blocks away from Fish Port and around 15 to 20 meters far
from Dagupan Church and Elementary Schools.

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Corporate Social Responsibility
Social Responsibility aims to ensure that companies
conduct their business in a way that is ethical.
SHEMASSAGE is not just about for earning profit, it is
also deals with activities that are beneficial not just for
the business itself, but also to the community, environment,
government, and people, as part of its social
responsibility.
Socio-Economic Benefits
The heart value of SHEMASSAGE is to provide the best
possible care for its customers and at the same time, give
it back to society.
The information below will be the contributions and
impacts of SHEMASSAGE and its benefits to the community,
government, economy, and environment, respectively.
Community Contribution
SHEMASSAGE would collaborate with the local government
in conducting free massage services and educational training
for people who want to learn or have some knowledge about
massage therapy that could use to get a job or create a
business in the future.
Government Contribution

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The business will ensure that all government
requirements will be submitted on time. Taxes will be paid,
and well-presented and business registrations will be
renewed.
Economic Contribution
Hiring employees would help to decrease the amount of
unemployment and it contributes to the growth of the
economy.
Environmental Contribution
SHEMASSAGE ensures the cleanliness of the surroundings
of it business, whether it is inside or out of its premises,
cleanliness will be observed and always maintained;
conservation of electricity and water by proper use and
monitoring of electrical equipment and water consumption;
furthermore, the management of the business would also make
sure to properly implement the proper way of management and
disposal of its waste.
Strategic Analysis of the Business
This part of business plan talks about the external and
internal environment of the business, the process of
organization’s operations, strategies and plans.
Vision

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To be amongst the well-known Massage Centers in Pangasinan
within the next 5 years.
Mission
To promote wellness by giving people access to the most
affordable rejuvenating care through massage therapy of the
highest quality delivered with commitment, hard work, and
integrity, and be the benchmark in the business industry in
the massage sector.
Goals and Objectives
 To capture a bigger market share,
 To provide the best customer service possible,
 Expand product or service offering.
Core Values
 Integrity - Shemasage rests assured to follow sound
business ethics and uphold truthfulness, reliability,
and loyalty.
 Quality – Customer satisfaction is one of the main
objectives of SHEMASSAGE, and we deliver it by
providing excellent service.
 Commitment and Excellence – SHEMASSAGE strives to
exceed customers' expectations by providing excellent
service because of its unwavering commitment to always
giving them the best experience possible.

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 Availability and Convenience – Shemasage operates 24/7
available and always has an accessible location,
whenever, wherever.
 Convenience – We are here to make your lives easier by
providing accessible locations for our massage centers
or by going to your homes whenever, wherever.
 Care - SHEMASSAGE cares for the well-being of its
customers and that of the community. It is at the heart
of our values to provide the utmost care for our
customers and staff to ensure their welfare and at the
same time, give back to the community.
Chapter 2
CHALLENGES
Putting up a business is easy to do, but maintaining it
is not. This chapter tackles the possible challenges that
SHEMASSAGE would encounter during the early stage of its
business operations as a new entrant in the market of
Dagupan City.
Management Challenges
Running a business is difficult, especially in the
early stages of business operation, also managing people is
even more difficult in the management aspect of business
operation, it is because they have different attitudes and

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characteristics from each other, which sometimes causes
conflict among employees due to having a different view and
opinions for certain things, and also a conflict between the
management and staff because they have their own thoughts
and ideas which is sometimes, if not most of the time
employees chose to follow it over the rules and regulation,
and procedures of the business, and also even to their
superior; furthermore, since people have emotions and
feelings as well, sometimes it affects their performance if
they have problems and carried it to their work and
unfortunately they were not able to handle it properly which
may lead or reflect a poor result of their performance.
Demographic Challenges
There are more than 30 massage businesses to be found
in Dagupan City, based on google Maps and not to mention the
number of counts of other massage entities that are not
included on the list might be higher. Furthermore, a lot of
them have been operating for more than 5 to 10 years
already, meaning to say the business has already established
its name and reputation.
Getting new Clients and Keeping Them
Attract and getting new clients are also problems that
have always been encountered with a newly established
business, as well as keeping or maintaining them to be its

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clients, sometimes it hard to do or obtain considering the
business is a new entrant in the market and has not been
proved yet its services.
Building Bran Reputation and Maintaining it
Dempsey (2022) mentioned that the Maturity level in the
business life cycle is the time or period where a business
could be called or classified as established and stable, and
it may take 8 to 10 years and next to the said stage is the
declining, maintain or renewal period. In the statement, it
is clearly shown that SHEMASSAGE, or any new business would
face many challenges to be considered stablished and stable
business.
In conclusion, the first impression and experience of
the target markets of SHEMASSAGE are the possible first
problems or challenges perceived by the proponent for being
a new entrant in the massage business sector.
Impression of the target markets about SHEMASSAGE, if
they going to try to avail the services offered by the
business or not, considering that there are lot of other
establishments or entities which also offer the same
services offered by SHEMASSAGE; and what would be the
evaluation of the customers if they tried to get a massage
service at SHEMASSAGE, would they be satisfied, contented
and happy in their experienced, or not. Now, at the present

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time, customers’ thoughts and opinions about business
establishments, products, and services regarding their
impression and experience are so easy and quick to spread on
the social media community, not just in a certain area, but
rather all over the world. To make sure to get good feedback
and a nice impression on the target market about the
SHEMASSAGE, the management should be able to inculcate in
its staff, how important their task as therapists for their
clients is, as well as for the image and reputation of the
company because it may result in failure or success of the
business. Also, an appealing business environment should be
implemented and all times to attract initial customers.
Chapter 3
MARKET ANALYSIS
Marketing analysis helps the owner of a business to see
or assess the industry of her business and if it is feasible
in the market or not. It also helps the owner to formulate a
strategy on how to run the business to penetrate the market.
This chapter discusses the classification of the target
market of SHEMASSAGE, the demand, and supply in the market,
how the company positions its products, and the strategies
that would be used by the company while operating its
business.
Target Market

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SHEMASSAGES would offer its services to people who like
to relieve the tiredness, pain, and stress of their bodies
and minds, enjoy the amazing feeling of being stress-free
and becoming much dynamic in their daily lives. These are
the people from all walks of life, such as managers or
owners of small and large enterprises with the high-stress
job; for athletes with injuries, suffering from pains, or
need general strengthening and relaxing of muscles; students
who often look to massage for relief from school pressure
and life’s stresses; and lastly, seniors who look for
pampering, and focus is on a healthy lifestyle to enjoy
their life in the fullest.
Demand and Supply Analysis
Based on the Philippine Statistics Authority, the
estimated population in Daquan City in 2022 of 18y/o, and
older is 171,271; and based on the result of the survey
conducted by the researcher, 98% of the total number of the
respondents answered that they have already experienced a
massage service, and 98% of them believed and enjoying the
good benefits of the service; A historical demand and the 5-
year projected increase of demand, also the supply analysis
and discussed below to see if the services of SHEMASSAGE
would be feasible in the market.
Table 1 Historical Demand for 2018 to 2022

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Market
Total Historical
Year Acceptability
Population Demand
Rate
2018 163,745 98.00% 160,470
2019 165596 98.00% 162,284
2020 167468 98.00% 164,119
2021 169359 98.00% 165,972
2022 171,271 98.00% 167,846
This table illustrates the historical number population
of Dagupan City from 2018 to 2022, and the historical demand
which is 98% of market acceptability. Although all the
massage establishments interviewed by the researcher refused
to answer questions or provide information about the number
of clients they service per day, it is still safe to assume
that there is still a demand for massage services because of
high market acceptability as shown on the table above; also,
as per the U.S. BUREAU OF LABOR STATISTICS on their article
“BEYOND THE NUMBERS” published on May 2022 titled
“Recovering from the pandemic: A bright outlook for the
personal care service industry”, “Employment in the personal
care services industry is expected to grow almost 5 times
faster than the average for the total economy over the 2020–

15
30 period. Increasing demand for hair, skin, nail, and
massage services from a growing customer population will
drive employment growth over the projected 10-year period.
In addition, an expanded customer base to include more men
and increased offerings of services will also contribute to
faster employment in the industry and occupations providing
these services, such as barbers, hairdressers, hairstylists
and cosmetologists, manicurists and pedicurists, skin care
specialists, and massage therapists”.
And to see a more realistic estimation result of
historical and projected demand, the researcher used the
parabolic method which is shown in the following tables
below.
Table 2. Statistical Parabolic Computation for Demand
2 4 2
Year Y X X X XY XY
2018 163745 -2 4 16 -327490 654980
2019 165596 -1 1 1 -165596 165596
2020 167468 0 0 0 0 0
2021 169359 1 1 1 169359 169359
2022 171271 2 4 16 342542 685084
TOTAL 837439 0 10 34 18815 1675019
Table 2-A. Statistical Parabolic Computation for Demand

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2 2
Year a b x c X Yc Y-Yc (Y-Yc)
2018 167467.657 1881.500 -2.000 10.071 4.000 163744.943 0.057 0.003
2019 167467.657 1881.500 -1.000 10.071 1.000 165596.229 -0.229 0.052
2020 167467.657 1881.500 0.000 10.071 0.000 167467.657 0.343 0.118
2021 167467.657 1881.500 1.000 10.071 1.000 169359.229 -0.229 0.052
2022 167467.657 1881.500 2.000 10.071 4.000 171270.943 0.057 0.003
TOTAL 0.2286
Table 2-B. Statistical Parabolic Computation for Demand
2
Year A b x c X Yc
2023 167467.657 1881.500 3.000 10.071 9.000 173202.800
2024 167467.657 1881.500 4.000 10.071 16.000 175154.800
2025 167467.657 1881.500 5.000 10.071 25.000 177126.943
2026 167467.657 1881.500 6.000 10.071 36.000 179119.229
2027 167467.657 1881.500 7.000 10.071 49.000 181131.657
2028 167467.657 1881.500 8.000 10.071 64.000 183164.229
σ=
√ 183164.299
5
Standard deviation (σ) = 0.21
And the result of the standard deviation of all the
data samples gathered by the researcher in terms of demand
for massage services is 0.21 using the statistical parabolic
method, meaning it is the best method that can be used in
projecting future demand. The proof can be seen in the table
below, which clearly shows that the market demand is
continuously increasing for the next 5 years.
Table 3. Actual Projected Demand

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Target Actual Target
Projected
Year Percentage of of Annual
Population
Target Market Demand
2023 173,203 6% 10,392
2024 175,155 7% 12,261
2025 177,127 8% 14,170
2026 179,119 9% 16,121
2027 181,132 10% 18,113
2028 183,164 11% 20,148
Survey Analysis
In order for the person to be successful in anything
that he/she will enter into, extensive knowledge of this
matter is very important for him/her to succeed. Therefore,
the proponent of this Business Policy studied thoroughly the
market of her proposal. The tools used in this study, all
the important information gathered, and the analysis and
findings of the researcher about these things will be
discussed in this section.
In this study, a survey tool was the main method used
by the researcher in collecting information about the target
market and the existing businesses that offer massage
services. The questionnaire is composed of two parts, first
about the profile of respondents and questions about massage
services.
Profile of the Respondents

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The number of respondents who participated on this
study are 400, these are people from all walks of life and
most of them are residing in Dagupan City, while others are
studying, working, and conducting business in the said
location. The demographic profile are illustrated in the
table below.
Table 4. Respondent’s Profile in Terms of Age, Gender, Civil
and Employment Status
Profile Frequency Percentage

18y/o & Younger 87 21.75%
19y/0 & 30y/o 195 48.75%
Age
31y/o - 60 y/o 111 27.75%
60y/0 & Older 7 1.75%
Male 322 80.50%
Gender
Female 78 19.50%
Marital Single 150 37.50%
Status Maried 250 62.50%
Employed 235 58.75%
Employment
Un-employed 35 8.75%
Status
Student 130 32.50%
This table shows that the majority of the participants
are males which comprised 80.50% of the total number of
respondents, and 62.50% are already married; in terms of
employment status, most of the respondents are employed and
the rest are students while others are not working.
The number of respondents involved in this study was
determined through the use of probability sampling known as
stratified random sampling. In stratified random sampling,

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the samples were selected because they can represent the
entire population of Dagupan City.
Using Slovin’s Formula with a 5% margin of error the
researcher concluded that the number of samples interviewed
in this research, which is 400 are sufficient enough to
represent the target market of SHEMASSAGE, and it is
computed as follows:
N
Formula: n= 2
1+ Ne
Where:
N = 10392, it is the 98% of the market acceptability of the
assumed number population in 2023, based on a 1.3% annual
increase rate from 2020 census data;
e = 5% desired margin of error;
n = the sample size.
Solution:
10392
n= 2
1+(10392)(.05 )
n = 385.17 or 385
Below are the results and the interpretation of
gathered data about the information of the target market or
respondents and the existing massage businesses in Dagupan
City.

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Question No. 1: Have you ever tried or experienced a body
massage?
Table 5. Frequency Distribution on Respondents’ Massage
Experience
Choices Frequency Percentage

Yes 392 98%
No 8 2%
Total 400 100%
Ninety-eight percent (98%) of the respondents or 392 of
them have already experienced or availed of massage
services. It only means that the massage service has a huge
market in the business industry.
Question No. 2: To whom do you often get a massage service?
Table 6. Frequency Distribution on Respondents’ often they
get a a massage service.

Licensed Therapist 240 60%
Trained Individual 137 34%
Others 23 6%
Total 400 100%
Out of 392 respondents mentioned in table ? above, 60%
of them want a Licensed Therapist to perform a massage
service for them and 137 chose a Trained Individual, while
the rest of the 23 respondents didn’t care who or what kind

21
of person gives them a massage as long as they would felt
relaxed once the service is done.
Question No. 3: Where do you usually avail a massage
service?
Table 7. Frequency Distribution on Respondents’ place where
they regularly get a massage service.

Home service 110 28%
Hotel Service 6 2%
Massage Parlor 96 24%
Others 180 46%
Total 392 100%
The home and massage parlor are the places chose by
more than 50% of the respondents where they usually
preferred to avail or conduct the massage service they
wanted, while the 46% said other location, the location that
pertaining by the respondents is the place where they are
working, and the 2% preferred to have it at the hotel.
Question No. 4: What type of massage service do you
primarily receive and how much do you pay for it?

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Table ?-A. Frequency Distribution on Respondents’ Types of
Massage Service they usually avial.
Choices Frequency Rank

Back massage 219 1
Ventosa massage 215 2
Regular massage 198 3
Hot stone massage 146 4
Aromatherapy massage 190 5
Shiatsu massage 90 6
Thai massage 79 7
Reflexology 69 8
Sports massage 43 9
Swedish massage 19 10
Deep tissue massage 17 11
Pregnancy massage 8 12
Others 7 13
Table ?-B. Frequency Distribution on Respondents’ Amount of
Massage Service they usaually Pay or Prefer to Spend.
Choses Frequency Percentage

Php 200.00 - Php 300.00 79 20%
Php 301.00 - Php 400.00 72 18%
Php 401 - Php 500.00 97 24%
Php 501.00 and Up 102 26%
Others 50 13%
Total 400 100%
To sum up, table ?-A and table ?-B illustrate the Back
massage, Ventosa massage, Regula massage, Hot stone massage,
and Aromatherapy massage with a frequency distribution of
219, 215, 198, 146, ad 190; respectively are the top 5 types
of massage services that commonly availed by the
respondents. While, the Shiatsu massage, Thai massage,
Reflexology, Sports massage, and Swedish massage placed 6th

23
to 10th rank; and Deep tissue massage, Pregnancy massage and
other types of massage service are the least in the options.
And most of the respondents or 74% of them are usually
paying P500.00 and below.
Question No. 5: How often do you get a massage service?
Table 10. Frequency Distribution on Respondents’ how Often
they Get or Want to have a Massage Service
Choses Frequency Percentage

Once a week 52 13%
Twice a week 135 34%
Once every 2 weeks 160 40%
Once a month 32 8%
Others 21 5%
Total 400 100%
Almost 80% of the respondents always get a massage
service twice a week and twice a month, and only 5% of the
respondents who are not frequently availing the services,
they just only take it if they felt they want it, or if they
are stressed, and if they are not feeling well.
Question No. 6: In relation to your response to question #1,
please indicate your reason/s below why your answer is “No”.

24
Table 11. Frequency Distribution on Respondents’ for Not
having Experienced a Massage Service.
Reasons Frequency Percentage

To young 1 13%
Don't have time 4 50%
Don't need it yet 1 13%
Just haven't tried it yet 1 13%
Expensive 1 13%
Total 8 100%
Question No. 7: By any chance, are you open to experience or
do you want to avail a massage service?
Table 12. Frequency Distribution on Respondents’ Who haven’t
Experience Massage Service but They are Willing to avail it.

Yes 8 100%
No 0 0%
Total 8 100%
Table ? and table ? shown that 50% of respondents who
haven’t experienced a massage service is due to a busy
schedule where they don’t have time to get a massage, and
the other 50% said, they don’t need it, they were still
young for it, others can’t afford it and others, they just
have not tried it yet; are all open or willing to avail
massage services they get a chance.
Summing up the details gathered about the demographic
profile of the target market of SHEMASSAGE, most of the
respondents are working, mostly at night shift, and most of

25
them preferred to do the massage in their work place or
nearby, they commonly chose the Back massage Ventosa massage
and Regular massage and they pay not greater than Php500.00;
and some of the reasons or problems why others sometimes
can’t get a massage regularly or for a quite sometimes is
because, too busy at work, most of the massage establishment
operates during day time only, other massage establishments
always fully book and no available therapist during the
spare time of the client, and other reasons of the client is
they can’t afford the price, and some of them also mentioned
that the masseurs or therapists that they know is not good
or doesn’t really know how to do a massage, where their
bodies get hurt even more.
The findings of the data gathered by the researcher are
going to use by the SHEMASSAGE as basis in formulating
strategies that they will use in running the business.
Market Positioning
One of the core values and part of the marketing plan
of SHEMASSAGE is to promote its product by word of mouth
through its customers’ experiences, In order to achieve this
goal, SHEMASSAGE will build a good reputation to its
customers by providing high-quality service with the lowest

26
possible price which will not only satisfy the needs of its
customers but also surpass their service expectations.
According to Linton (2018), Quality services help to
maintain customer satisfaction and loyalty.
Figure ? presents the market positioning of the
SHEMASSAGE.
Figure 2. Market
L
H
C
Positioning
As presented in figure
i 2 market positioning of
o
HEMASSAGE indicates that
g the products it offers are
w
h prices in contrast to its
of high quality at low Q
P
competitors. Q
u
P
r
Market Segmentation u
a
r
i
In order to understand a the target market of
l
i
c
SHEMASSAGE, the business l used psychographic and
i
c
e
demographic segmentation to i be able to create a
t
e
marketing strategies that t helps the business to offers
y
its service to its target y markets.
SHEMASSAGE offers various types of massage services as
listed in Chapter 1, page 4, under the “Services Offered”
part, those types of massage services are created that
tailored the needs of the following types of clients listed
below.

27
 Clients who get a massage as a form of alternative
health care. These are the types of Filipinos who
believe in the health benefits that a great massage
therapy brings. They are mostly the stressed Filipinos,
always on the go. They are the office workers always on
their seats, the teachers, the medical professionals,
and the porters always on their feet, those who lead
busy lives or have to make hard decisions at work such
as business owners and executives.
 Clients who love to pamper themselves and see massage
as a treat, a self-gift, and a form of relaxation. For
these types of clients, massage for them is part of
their lifestyle. They have high disposable income and
they are the types who would get a massage at least
once to four times a month.
 Clients who are: sick, in pain, or recovering from
injuries (pilay) or accidents. Filipinos' first impulse
when they are suffering from flu or headache, "pilay,"
backache, etc. is to go get a massage. For these types
of clients, massage for them is a necessity.
Marketing Plan
After understanding the market environment of massage
business and the target markets of SHEMASSAGE, the following

28
marketing strategies are created to use in promoting the
business of SHEMASSAGE to penetrate the market.
Promotional Strategies
At first, SHEMASSAGE will create awareness about the
existence of the business and the services that it offers to
its target market by using social media. This tool can reach
its target market that has access to the internet and make
them aware of the business's existence and give them
information about the business through social media.
The print advertisement will also be utilized. It will
help the business to explain to its target market the "what,
when, where, and why" they should buy. Flyers will therefore
be distributed and given to different schools, vendors,
employees, and market-goers; signposts with a size of 8x3
feet will be fixed on various exit and entrance points of
Calasiao, Binmaley, San Fabian, and Mangaldan; and various
sticker layout with images of the services offered by the
SHEMASSAGE will be given to tricycle, busses, and jeepney
drivers and have it posted inside of their vehicles.
Furthermore, SHEMASSAGE will be doing sponsorship to
finance various events like the annual town fiesta in order
to promote the business. Lastly, forming business
collaboration or a tie-up with other massages services
providers, it is also an important strategy for SHEMASSAGE

29
because with this, the business will be able to earn
additional income through exchange of referral and/or
commission.
Pricing Strategy
Setting standardized pricing is difficult to do because
of the unfixed rates of direct and indirect cost of running
a business. SHEMASSAGE therefore, will be using different
pricing strategies such as the value-based and competitive
strategy where the price of the services are affordable,
based on demand and comparable to competitors, and the value
of the services compared to its price is good. This way of
pricing the services should be consistently implemented in
order to penetrate the market effectively and successfully.
Chapter 4
SERVICE AND OPERATIONAL MANAGEMENT
This chapter talks about the documents or permits set
by the government of Dagupan City that needs to be
accomplished by the SHEMASSAGE in order to start its
business operation. It also shows here the list of materials
and equipment’s that will be using in massage services and
the process on how to do it.
Legal Requirements

30
The following pertinent documents are to be complied in
commencement with the prescribed policies and regulations in
the operation of the business.
● DTI Certificate of Registration,
● Barangay Permit,
● Sanitary Permit,
● Mayor’s Permit,
● Fire and Safety Inspection Certificate,
● Municipal Engineering Building Inspection,
● Social Security System (SSS),
● Philippine Health Insurance Corporation (PHIC),
● Home Development Mutual Fund (HDMF), and
● BIR Registration.
Organizational Cost
Table ?. Organization Cost
Requirements Cost
DTI Certificate of Registration Php200.00
Barangay Permit Php900.00
Barangay Plate Php500.00
Sanitary Permit Php200.00
Fire and Safety Inspection Certificate Php396.60
Municipal Engineering Building Inspection Php4,000.00
Occupational Permit Php340.35
Building Permit Php200.00
Business Plate Php60.78
Business Tax Php1,320.00
Mayor’s Permit Php850.86

31
Receipts Php15,000.00
BIR Registration Php1,320.00
Total Php25,288.59
This table shows that the total cost of the legal
requirements needed by SHEMASSAGE to operate its business is
Php 25,288.59.
Materials
The following listed equipment and materials are
illustrated in the table below:
Table ? Equipment and Materials

32
Particulars Description Source Qty Unit Price Amount
Speaker Online Shop 1 ₱ 1,500.00 ₱ 1,500.00
Dagupan
Linens Public 50 ₱ 550.00 ₱ 27,500.00
Market
Dagupan
Towels Public 50 ₱ 350.00 ₱ 17,500.00
Market
Sofa Online Shop 1 ₱ 5,000.00 ₱ 5,000.00
Masasge Bed Online Shop 1 ₱ 3,350.00 ₱ 3,350.00

33
Particulars Description Source Qty Unit Price Amount
Aroma
Online Shop 1 ₱ 1,500.00 ₱ 1,500.00
Difusser
Dagupan
Linens Public 50 ₱ 550.00 ₱ 27,500.00
Market
Dagupan
Curtains Public 12 ₱ 450.00 ₱ 5,400.00
Market
Dagupan
Tea Ci[ Set Public 2 ₱ 675.00 ₱ 1,350.00
Market
Cape SM Dagupan 10 ₱ 350.00 ₱ 3,500.00
Robe SM Dagupan 10 ₱ 425.00 ₱ 4,250.00

34
Capital or Investment
The amount of capital to be invested in the proposed
business is around 160,000.00 wherein the owner will finance
this amount from her own savings.
Process Planning
The diagram below shows the process plan for SHEMASSAGE
services. According to the massage therapists interviewed by
the researchers, each client has their own preferences. Some
people prefer to use oil for body massage, while others opt
for body lotion or ointment. Massage oil reduces friction
during massage and makes the massage smoother and easier,
which is why clients or some customers prefer not to put
anything on their skin, which makes the massage process
difficult, but in the end customers is always the king and
SHEMASSAGES must always meets the clients request and
expectation.
Figure ?. Process Planning

35
CHAPTER 5
HUMAN RESOURCE MANAGEMENT
Edwin B. Flippo, as cited by Kumar (2011) in his book
Human Resource Management: Strategic Analysis Text and
Cases, Human Resource Management is defined as "planning,
organizing, directing, controlling of procurement,
development, compensation, integration , maintenance and
separation of human resources to the end that individual,
organizational and social objectives are achieved." On top
of the tasks above, human resource management entails
addressing the current employees' concerns and improving
their morale. For most organizations, the human resource
department is the one responsible for everything related to
the company's human capital from managing job recruitment,
providing orientation programs for new hires, discussing
compensation and benefits, and up to managing the good
relationship for labor and employees.
For SHEMASSAGE however—bearing in mind that it is small
in terms of scale and is a sole proprietorship—it is the
business owner's task, along with the assistant secretary,
to handle and oversee the company's employees.
Business Structure
SHEMASSAGE will be managed and ran by 12 people
including the Manager or the Owner who is responsible for

36
the day-to-day operation of the business, and the sole
proprietor of the business. She is followed by assistant
secretary, who will act as a manager if the owner is not
around; 2 receptionists who are accountable for the
implementation of office procedures; and 6 therapists, and 2
laundry personnel.
Organizational Structure
Employees often get confused about whom they report, if
the owner is not around and most of the time the
distribution of workload among different departments tend to
be uneven and out of order which may result in poor service.
Therefore, an organizatioanl strutuc is illutrated below to
avode the miss undersding at work.
Owner / Manager
Assistanct
Secretary
Receptionist Receptionist
Therapist Therapist Therapist Therapist Therapist Therapist
Laudry personnel Laudry personnel
Figure ? Organizational Chart of SHEMASSAGE

The table above illustrates that the laundry personnel
and the therapist should directly report to the

37
receptionist/ while the receptionist will report to the
secretary.
Personnel Plan
To assure that SHEMASSAGE would have a team of the
eligible employees the personal plan is created, it includes
the number of people needed for the specific position, as
well as the character, ability and skills that the
applicants should possessed.
Table ? Personnel Plan of SHEMASSAGE

38
Job Salary
Position Number Qualification
Description per day
Answer phone
calls and
Male/Female
redirect them
when necessary
File and
update contact
information of
20 years old employees,
or above customers,
suppliers and
external
partners
At least a Develop and

Bachelor’s maintain
Degree holder filling system
Responsible
With good
for payment of
communication
tax, utility
skills.
bills
Secretary 2 High degree of ₱400.00

multitasking Process
and time payroll
management
Document
Proficient in
expenses and
Microsoft
hand in
office
reports
Strong Prepare
analytical regular sales
skills and with and
a goal oriented forecasting
attitude reports
Keep organized
records of
marketing
metrics and
result of
past campaigs

39
Receives
payments on
Male or Female.
behalf of the
business.
Graduate of any Prepares cash

business report at the
related course, end of the
or day.
Maintains
6+ months work staff records
experience in including
similar role. salaries and
benefits
Responsible
With good
for payment of
communication
tax, utility
skills.
bills
Assisting
Must be detail- clients about
oriented the services
Reciptionist 2 ₱400.00
they want
Responsible
Can work under
for marketing
pressure.
activities
Maintains safe
and healthy
working
environment
Responsible
for checking
and
maintaining
the inventory
of supplies
Responsible
for monitoring
massage
therapists who
are on outcall
or onsite
40
Interview
clients to
Male/Female.
gather medical
conditions;
Administer
therapy
treatments to
18 years old or clients using
above hand or
physical
treatment
aids;
Must be
Maintain
TESDA/DOH
treatment
Certified
records;
Therapist;
Treats clients
in
professional
settings or
Healthy and travel to
physically fit; clients’
offices or
Therapist 6 homes as per ₱ 400.00
request of
clients;
Prepare and
Able to stand
blend oils and
for long
apply the
periods of
blends to
time;
clients’skin;
Maintains
quality
With strong service by
arms and hands; following
organization
standards; and
Maintains a
calm and
Able to inspire soothing
or motivate environment
customers; and that enable
the patient to
relax .
Customer-
Oriented.
41
Requisition
supplies and
Male or Female, equipment
at least 18 needed for
years of age cleaning and
maintenance
duties.
Perform
general
With or without
cleanup of all
experience
areas of the
office
Ensure rooms
Healthy and are maintained
physically fit and fully
equipped
Laudry Man 2 Wash all dirty ₱400.00

linens, robes
shorts and
Can multitask
others, then
work
fold or hang
it properly
once it is dry
· Maintains
safe and
Customer-
healthy
Oriented
working
environment
Maintains
quality
service by
following
organization
standards
Table ? are the information about the type individual
that should hired by SHEMASSAG. The applicant should be
trustworthy, industrious, professional not just in academic,
but also in manners, and etc.

42
Hiring Process
With SHEMASSAGE, the owner will initially hire the
secretary/ receptionist who will be the one responsible for
filling-up the other vacant positions.
Figure ? Hiring Process of SHEMASSAGE
As presented in Figure ?, first needs to identify the
vacant job before looking or recruiting qualified applicants
who will then undergo the initial interview wherein the
applicants will be profiled based on their background and
work experiences. Those who will make the initial cut will
be endorsed for the final selection which will be conducted
by the owner and if they passed this last hurdle, they will
now then, sign the contract.

43
Orientation
After passing the last test or interview, candidates will go
through orientation, where they will learn about the company's
vision, mission, core values, and policies. To help them
understand the significance of their roles and become more
successful and productive team members, they will also be given a
briefing on the tasks and obligations associated with their
professions.
Furthermore, it is during the orientation that the
employees' compensation and benefits, as well as the terms and
conditions of their employment contract, will be discussed.
Compensation and Benefits
The following benefits and compensation will be
provided to all employees in accordance with the Philippine
Labor Code, with the exception of the owner or manager, who
will receive her income from withdrawals from her company.
The following benefits and compensation will be provided to
all employees in accordance with the Philippine Labor Code,
with the exception of the owner or manager, who will receive
her income from withdrawals from her company.
 Basic Pay: On the 15th and the last day of every month,
employees will receive their bimonthly minimum wage
payments. They will be paid a day before the payday if
it falls on a weekend or a holiday.

44
 Overtime pay – if the amount of time spent by the
employees is beyond normal working hours they will be
paid with premium of 25% of the hourly rate on ordinary
days and 30% on Holidays. Note: to avoid inefficiencies
at work, only the approved overtime will be paid.
Normal working hours are from 7am to 10pm daily.
Regular workers are expected to work from 7am to 4pm,
the rest of the working hours will be covered by the
part-time workers and if there are a lot of customers,
regular workers can file for an overtime.
 Leave Benefits - Employees are also entitled to 10 paid
vacation days, which, if not used, are convertible into
cash each December.
 13th Month Pay: Workers will receive a bonus in
December equal to one month's pay, of their salary; if
the worker hasn't been yet for a year in his/her
employment, the customary method of calculating 13th
month pay will apply.
 Statutory Benefits - Employees are also entitled to
SSS, Pag-IBIG, and PhilHealth social insurances.
Contribution sharing between the employer and employee
must be used.

45
 Snacks – All staff will receive free snacks in their
duties.
Operational Policies
Each businesses has its own set of rules and
regulations in place to safeguard its staff, clients, and
the enterprise itself.
The guidelines, rules and regulations of SHEEMSAGE are
outlined below, along with the sanctions that will be
applied to employees who will be proven guilty.
 Employees are expected to act in a way that promotes
operational effectiveness, productivity, safety, and a
pleasant working environment.
 Every day, employees are expected to arrive earlier
before their shifts start; excessive tardiness or
absenteeism is strictly prohibited and punishable.
 No employee shall consume alcohol or be under the
influence of alcohol while on the job. Any worker who
shows up for work under the influence of alcohol or a
drug that is illegal will not be allowed to work.
 In case the employees need or want to resign, they must
submit a resignation letter 15 days prior of their
actual resignation date; they are also required to
render while the management is still looking for

46
someone that will replace to his position, if his
resignation request get approved. Furthermore, he must
acquire for exit clearance, to get his reaming salary
or any benefits.
 If the employee cannot be able to go to his work for
whatever reason or will be late in coming into his job,
he must notify the management 1 hour prior of his
schedule in work.
 If a worker doesn't uphold the company's standards for
behavior or performance, necessary corrective action
may be taken. The management has the discretion to
decide which course of action would be best in each
situation.
Table ? Policy Violation and Sanction
Sanction
Policy
First Violation Second Violation Third Violation
Conflict of Interest Written Reprimand Suspension Termination
Neglect of Duty Written Reprimand Suspension Termination
Absenteeism Verbal Warning Written Reprimand Suspension/Termination
Employee Theft Termination and paying an amount equivalent the value of the stolen stuff
Table ? above illustrates the sanctions of the
employees if they violated the rules and guidelines of the

47
company. The sanction for first violation is either verbal
warning or written reprimand, and for the second violation,
for neglect of duty and conflict of interest would be
suspension to their job and if happens again for the third
time, the sanction will be the termination of his job.
Chapter 6
FINANCIAL ANALYSIS

48
Chapter 7
PESTLE AND SWOT ANALYSIS
An entrepreneur needs to consider a lot of things
before, during, and after putting up a business. This can be
done by using various tools like PESTLE and SWOT because
these allow entrepreneurs to see if the business is
feasible.it also enables the manager to develop an
appropriate plan in order to successfully penetrate the
market. These factors include the status of the business
industry, rules and regulation or laws, demographic status
of its target market, and the internal and external factors
of the business environment.
This chapter will be discussed the internal and
external factors of SHEMASSAGE that affects the operation of
its business.
PESTLE Analysis
Knowing the supply and demand for a product or service
is insufficient, and a business plan is incomplete without

49
it Analysis of PESTLE and SWOT. These frameworks were
designed in such a way that business visionaries will be
mindful of the challenges that a business may confront. For
example, PESTLE Analysis is used to examine the external
marketing environment and the numerous others in terms of
politics, economics, and social, technological, legal, and
environmental factors that might have impact which directly
affects the business operation of SHEMASAGE.
By using these tools, SHEMASSAGE can reach its
potential growth and maintain it by utilizing the ability of
using its strengths and opportunities and it will also be
able to eye on and address its short comings and threats.
Political Factors
Political issues include a wide range of factors that
are typically derived from the government in the form of
policies or legislation. There are few trade restrictions
and tariffs to be concerned about when conducting a pestle
analysis of a health spa. Many employees in the organization
work part-time. With the government currently encouraging
parents (particularly single parents) to return to work, the
health spa industry should see an increase in the number of
workers available. Because peak times in a health spa are
typically evenings and weekends, this could certainly align

50
with the political push to encourage mothers to return to
work, as this would be more convenient.
Economic Factors
The pestle analysis then examines the financial impact
on the health spa industry. Inflation rates, interest rates,
and general economic conditions are key areas for pestle
analysis. Because health spas are typically considered
luxury items, the number of customers is likely to decrease
during an economic downturn. Individuals who have less
disposable income as a result of high inflation will be less
likely to spend money on luxuries. The current economic
climate is relatively weak, and people do not feel wealthy
enough to spend large sums of money on health spa
treatments. According to the pestle analysis, this is a
specific threat to the health spa industry, and management
should be aware of it.
Social Factors
In a pestle analysis of spa massage industry, the socio-
cultural area is much more positive. This part of the pestle
analysis takes into account demographic characteristics such
as age and wealth as well as topics such as career
aspirations and general interest in health topics. In this
case, the spa industry is doing very well. As more and more
young women pursue lucrative careers, the demand for spa

51
facilities increases. Not only are younger people earning
well, the gray pound is also gaining strength. There is a
growing demand for spa treatments by older people and an
increasing ability of these people to afford such
treatments. These changing requirements have led to
significant diversification and new opportunities within the
spa industry such as: B. Health and fitness weekends and
sports therapy.
Technological Factors
At first glance, technological developments do not
appear to be particularly relevant for a health resort.
However, when conducting a more detailed pestle analysis, it
becomes clear that the spa industry in its current form has
relatively high barriers to entry due to the expertise and
technology required. As noted in the previous part of the
PESLE Analysis, consumers are becoming more sophisticated
and adventurous when it comes to health and beauty. As such,
spas increasingly need to ensure that they not only have the
latest technology, but that staff are properly trained to
use these devices. While simple spas find that a lack of
technology does not prevent them from entering the market,
the pestle analysis in terms of socio-cultural aspects has
shown that in order to establish a real competitive

52
position, companies must offer cutting-edge technology and
diverse options.
Legal Factors
Looking at the spa industry from the PESTLE’s
perspective, it's not surprising that health and safety
legislation is both numerous and restrictive. It is
necessary for all massage business to comply with basic
health and safety regulations, but they should also take
into account treatment-specific requirements. All therapist
must be appropriately qualified, which will translate into
rising personnel costs. The insurance must be maintained and
all necessary labor law regulations must be complied with.
As the workforce is likely to be mostly part-time and
possibly even self-employed, care must be taken to ensure
that the correct tax and paperwork requirements are met.
Environmental Factors
The issue of environmental factors has only just been
added to the pestle analysis in a bid to recognize how
important this factor can be to the success of a business.
Traditionally, in the pestle analysis, a company would
consider the environmental issues with which it must comply.
In the case of a massage spa, this is largely likely to be
in relation to dangerous substances such as massage oils and
cleaning chemicals. However, a slightly different approach

53
which the pestle analysis reveals is that the environment
could, in fact, bring opportunities to a health spa company
with a growing demand for organic and natural products. As
previously mentioned above in other PESTLE factors, Many
consumers are willing to pay a premium for natural products
and, as such, being seen to be environmentally friendly will
not only ensure regulatory compliance, but may also
encourage more customers at a higher value.
Table ? PESTLE ANAYLIS OF SHEMASAGE

54
FACTORS ANALYSIS
The government is constantly changing the rules and
regulations for business and massage therapists
For example, Administrative Order #2010-0034, which is a

guideline for the licensing requirements for all massage
POLITICAL therapists here in the Philippines, was suspended a few
years ago and the laws on accreditation changed
IATF guideline when pandemic hits

TRAIN (Tax reform for acceleration and inclusion)law R.A.
10963
Inflation rates, interest rates and general economic
conditions here in the Philippines
When there is an economic downturn, the prices of

everything go up: running the business, rent, employee
salaries/labour, massage materials. Taken together, this
also affects the price of massage services. While consumer
ECONOMIC
perspectives on health and wellness have changed in recent
years, when Filipinos have less disposable income due to
inflation rates, they may have to choose between paying
for a meal or a massage, and the choice is a no-brainer.
In this case, Marvelous Massage needs to find a way to
reduce its costs and develop more effective promotions and
more attractive massage packages for its customers
Demand is increasing among both young and older Filipinos

as more and more health conscious people have become
SOCIAL These represent an opportunity for Marvelous Massage, such
as companies offering their employees an irresistible
massage package.
The advent of modern tools, aids and devices in massage
therapy
TECHNOLOGICAL Knowledge of using these tools
Using the Internet to promote Marvelous Massage and allow

its clients to book appointments online.
All massage therapists employed are DOH licensed or TESDA
accredited
Ensure all taxes and mandatory employee benefits and

contributions are paid (SSS, Pag-ibig, PhilHealth)
SHEMASSAGE will comply with basic health and safety

LEGAL
regulations imposed by DOH (in accordance with the
provisions of the Code on Sanitation of the Philippines or
Presidential Decree 856 (PD 856) and Executive Order 102
(EO 102) see 1999 Reorganization and rationalization of
the DOH)
Ensure that medical history is well taken into account

SHEMASSAGE uses organic and natural products such as
ENVIRONMENTAL
banana leaves and virgin coconut oil.
SWOT Analysis

55
Kenton (2019) defined SWOT analysis as a framework that
use to evaluate a company’s competitive positions and to
develop strategic plan.
It is split into two factors, internal factors and
external factors. The internal factor has 2 elements,
namely; Strengths – (things that the business does well,
unique qualities that separate the business from its
competitors, internal resources such as skilled and
knowledgeable staff, tangible assets such as intellectual
property and technology); and Weaknesses – (things that the
business is lacks of, things that competitors do better,
limited resources and unclear unique selling proposition),
in this category, all things are reasonably controllable.
The external factors has two elements also; the
Opportunities – (such as few competitors in the area,
increase of demands of the service offered, and others); and
the Threats – (such as emerging of new entrants, changing
regulatory environment, changes of customers’ preferences),
in this category the business essentially has no control.
Table ? below illustrates the SWOT analysis of
SHEMASSAGE, that provides assessment tools by identifying
core strengths, weaknesses, opportunities and threats to
fact-based analysis, and new perspective ideas of
SHEMASSAGE.

56
The table ? SWOT Analysis of SHEMASSAGE
INTERNAL
STRENGTHS WEAKNESSES
Low labor cost Lack of Capital
Increasing interest of
Filipinos on personal health Limited Services offered
and welness
Good location - high footfall

Limited number of massage
in the area
P N
O Good know ledge on massage
Therapists employed
E
therapy
S G
I A
OPPORTUNITIES THREATS
T T
I Fast growing industry Stiff competition I
V High acceptance of massage
V
Large competitors get
E not only in Pangasinan but in
majority of market share
E
the whole of Philippines
There are plenty of Filipinos Threat of new entries as the

who are massage therapy spa industry is rapidly
graduates growing
Shifting market demand from

beauty to health and wellness
EXTERNAL
Using the internal and external data from numerous
factors collected via SWOT AND PESTLE analysis, the
SHEMASSAGE had the opportunity to see and identify where it
needs to improve internally as well as to help develop
strategic plans.
It is recommended that the foregoing PEST and SWOT
Analysis are used together, and are applied in a group
setting to support effective strategic planning, decision
making and action planning. These are cost and time
efficient means for highlighting key issues relating to the
context of the business proposal, that if not identified and
addressed, could critically affect the chances of success.

57
Chapter 8
STRATEGIC PLAN
All entrepreneurs had great visions with their
businesses but not all are able to achieve those visions due
to many factors like poor customer service, wrong target
market, bad marketing strategies and others. However, all
elements can be modified and used efficiently to achieve
business goals with the right strategic plan.
Based on definition, strategic planning is an
organization's process of defining its strategy or direction
and making decisions about the allocation of its resources
to pursue that strategy. It can also extend to control
mechanisms to guide the implementation of the strategy.
Therefore, the purpose of strategic planning is to set the
overall goals of the company and develop a plan to achieve
them. It means stepping back from your day-to-day business
and asking where your business is going and what its
priorities should be.
This chapter talks about the strategic plan of
SHEMASSAGE, its marketing objectives; and how it will make
use of its assets, resources, and people, and the market
expansion plan in relation to Ansoff’s Matrix.
Marketing Objectives

58
Marketing objectives set out what a business wants to
achieve from its marketing activities. It needs to be
consistent with overall aims and objectives of the business.
It is specific, easy to measure, can be achieved, not too
ambitious, and designed for a specific period. The following
Marketing objectives are proposed in relation to the
business’ service:
 To establish strong customer patronage by introducing
 loyalty programs, staying in touch with them through
 SMS and online media.
 To increase sales by 5% through promotions and strong
advertising strategies.
 Ensure the business maintains an image of
professionalism and quality.
 To be made known of the services offered through a
quality service and professional trainings.
Ansoff’s Matrix
Managing a business operation and making it grow in
order to penetrate the market is not that an easy job
because of the challenges that are involved in it. Igor
Ansoff therefore, developed a matrix that helps leaders or
owners of a business and marketers think and understand the
risk of growth in a business. Ansoff called this model the

59
Ansoff Matrix and is also sometimes called the
Product/Market Expansion Grid.
Figure ?: Ansoff’s Matrix
The market penetration is the safest of the four
options. This means that the business is focused on
expanding the sales of its existing product in its existing
market. On the other hand, diversification is the riskiest,
because the business is Market Development Diversification
Market Penetration Product Development Ansoff Matrix
introducing a new, unproven product into an entirely new
target market or different customers; while product
development is slightly more risky because the business is
introducing a new product into an otherwise already existing
Market; and as for the market development, it means the
business is putting an existing product into an entirely new
market.
Market Penetration
SHEMASSAGE is a startup and has no regular customers yet.
It's cautious and doesn't want to take a huge risk by offering

60
many other types of massage and spa services, but wants to
penetrate the market first by offering its limited massage
services. SHEMASSAGE will do this by pointing out other massage
services that it offers. For example, if a client walks in and
just wants a neck massage, the SHEMASSAGE receptionist will also
offer them to try a foot massage or a hand massage. In addition,
the receptionist presents the customer with a discount
coupon for their next visit and if they bring two customers,
they get three massages for the price of two. SHEMASSAGE may
also establish a loyalty program whereby registered
customers who are frequent visitors are entitled to free
massage services.
Market Development
Once SHEMASAGE stablished its name, it may now open
another branch or branches. But it also involves higher
risks. In order for the company's massage services is well
received, it must ensure that the massage quality remains
the same for its customers consistently.
Product Development
Once SHEMASAGE stablished its name to its target market
and stretched out its markets, the business will offer other
massage services like Aromatherapy Massage, Shiatsu Massage,
Reflexology, Hot Stone Massage and Ventosa Massage. These

61
five types of massage, along with regular massage and back
massage, are the ones that are popular with respondents.
Diversification
The SHEMASSAGE might also offer skin care services to
tailor the other needs and demand of its new target market.
Chapter 9
CONCLUSION / COMPELLING STRATEGY
The researcher came to the conclusion that starting and
running a business is not that easy. It's not just about
investing money, it will also bring profit; like saving your
money in the bank and after a month it earns interest. Here,
before SHEMASSAGE turns a profit, management must be able to
surpass any challenges it encounters, such as: B. the stiff
competition of the massage industry; changes in governmental
laws and regulations; the rapid change in the business
industry due to the impact of technology, which is costly;
Finding the right target market to support SHEMASSAGE's
products is also a challenge.
However, the searcher believed that using the list of
marketing plans such as promotional and pricing strategies
will help SHEMASSAGE attract customers and generate profits.
Proper implementation of SHEMASSAGE's rules and regulations
could also help the company and its employees become more
productive. Also, implementing the strategic plan and

62
competitive strategies discussed in Chapters 8 and 9
respectively will not only help company make money but also
penetrate, expand and diversify until it achieves its
vision.
Marketing Mix
Product
SHEMASSGE offers various massage service to its target
market which are suit to all type of ages, segment or group
of people.
Price
The price of the products of SHEMASSAGE are ranging
from PhP00.00 to PhP00.00 only which is every affordable and
anyone can afford even the individual or target market who
does not have job, like students or bystanders, still, they
can afford it.
Promotion
SHEMASSAGE will distribute flyers, give giveaways and
participate to annul event Dagupan City giving lectures and
free massage program.

63
Chapter 10
RECOMMENDATION/ACTION PLAN
Based on the market research conducted by the
researcher, the following competitive strategies or action
plans are recommended for implementation by SHEMASSAGE in
order to surpass any possible challenges it may face and
finally achieve its goals.
Competitive Strategies
Based on the results of the SWOT analysis, the
researchers found that SHEMASSGAE has several weaknesses and
threats that need to be addressed by the management and
develop strategies to solve these problems, because if not,
SHEMASSAGE definitely going out of business. Through
competitive strategies the business can achieve competitive
advantages over its competitors. According to BUSINESS
JARGON, one of the business websites found on the Internet,
competitive strategies are defined as a long-term plan of

64
action formulated considering several external factors that
will help the company to gain competitive advantage and
increase market share and overwhelm rivals.
Cost Leader Strategy
This strategy is about pricing the products lower than
other competitors. As shown in figure ? market positioning,
under chapter 3; SHEMASSAGE positioned its services as high
quality with low price. Providing quality service SHEMASSAGE
can lower it cost in promoting its services because the
customers themselves might promote the products using word
of mouth to others if they were satisfied on it. Less
promotional strategy is less cost; therefore, SHEMASSAGE can
implement the cost leader strategy.
Focus Strategy
This strategy consists of focusing on a specific
segmentation of the market, implementing differentiation and
cost leadership. SHEMASSAGE will focus on these business
professionals and employees because these two types of
segments or profiles of SHEMASSAGE's target market have the
highest percentage of individuals using massage services.

65
BIBLIOGRAPHY
Business Jargon. Competitive Strategy.

https://businessjargons.com/competitive-strategy.html
Juneja, P. (n.d). SWOT Analysis - Definition, Advantages

And Limitations.
https://www.managementstudyguide.com/swotanalysis.htm?
fb_xd_fragment&fb_xd_fragment
Kenton (2019). INVESTOPEDIA. SWOT Analysis. Updated Feb 27,

2019 https://www.investopedia.com/terms/s/swot.asp
Service Quality And Its Importance Marketing Essay.

https://www.uniassignment.com/essaysamples/marketing/
service-quality-and-its-importancemarketing-essay.PhP
Massage Benefits
https://www.manchesterphysio.co.uk/treatments/massage/
benefits-of-massage/decrease-stress.php#:~:text=Massage
%20helps%20relieve%20stress%20by,of%20content%20and
%20well%2Dbeing.
Beal (2016),Stress can trigger violent crimes:

https://www.dailymail.co.uk/sciencetech/article-
3688460/Stress-trigger-violent-crimes-Looking-events-
like-recent-family-death-help-predict-offences-
occur.html
Clarbut (2019), Why relaxation is so important.

https://www.wellbeingpeople.com/2019/04/15/why-
relaxation-is-so important/#:~:text=When%20we%20relax

66
%2C%20the%20flow,blood%20pressure%20and%20relieves
%20tension.
Number of massage business in Dagupan city.

https://www.google.com/search?
tbs=lf:1,lf_ui:14&tbm=lcl&sxsrf=AJOqlzXYnq4wg1IAi5uoDGG
2VKXQUVbzzA:1674234365993&q=massage+business+in+dagupan
+city&rflfq=1&num=10&ved=2ahUKEwjhlZ-
f0db8AhVVA94KHZJZDNwQtgN6BAgbEAY#rlfi=hd:;si:;mv:
[[16.4704585,120.64056690000001],
[15.426532100000001,120.31014870000001]];start:60
https://psa.gov.ph/population-and-housing/node/56809
Beyond the Numbers. Recovering from the pandemic: A bright
outlook for the personal care service industry.
https://www.bls.gov/opub/btn/volume-11/recovering-from-
the-pandemic-a-bright-outlook-for-the-personal-care-
service-industry.htm
Raj Kumar(2011).Human Resource Management: Strategic

Analysis
Text and Cases. https://books.google.com.ph/books?
id=4OgyJ740KxMC&prin
tsec=frontcover#v=onepage&q&f=false
The Monday Campaigns. STRESS.

https://www.mondaycampaigns.org/destress-monday/the-
health-benefits-of-reducing-stress. JANUARY 02,2023
KRAUSE(2023, “Why A Good Logo Is Important For Your Small

Business”. https://www.designpowers.com/blog/why-a-
good-logo-is-important-for-your-small-
business#:~:text=A%20well%2Ddesigned%20logo
%20builds,that%20you%20do%20great%20work.
Plagiarism
https://www.grammarly.com/report?
alerts=NobwRAxghgLgpgcwPYCcCeYBcYBCUDOAlhAAoCuAdhDGADRg
IpJkAOWY5VMZshSFdSLESo0ACTIBbKAOwBhJJOkACSYXxl8cZQHdCMA
BaEKyiABsomuPkERmFGpgBsAX1rho8ZOnYAVOBRaNvSMzGzYAOIoUEp
QKLbC3uJSMuwAYpZmMGjK8IHaWgCOZAEQcLb2jgCMbh6JouwKFABWlN
R8gYKhrOxRMdLx9J4i6BLSsmBNrVwdylYVlNW1Ql4N8oosnNRdTD3YW
9y8-AmroykTBzwws8amG-
YAJgD0dpIsZnAAHspaDqXWCwcWAALMthkl2AARODwFBqChwFDBBi7cJ
gPqxQYrEbJcZQmGI
%2BGIuZaZQACigTxkT0McBpRnwtGUMIgADoAJSAxwAVjB9R8%2BwIRA

67
AbnAAGpIYjlEKo9gAZWyHxOOLGqUF
%2BBF2mFkrKqnU8yGlSwNXc2Ih2AAcvZkd00RiBsqkqqJgBJKioFBwa
jKCj2H1SABGiK5WAAzHzThhsAB1VAPYzWG2y7AKtBKob83FqsCxlAPH
K-
PJlZF2RbGiM49hixEBpNhXrRTGO0TO9huuwoT3e0UoAPKABmqEkJaNm
AATBXzRxPSwkERrvw63t0Y2HRnI62Y0wKAhlKg9RrjLuWDO5-
oOiOy5hQabwWswHKWF7CFAzHIDHEoNREUu0ZcjgI64quc7AALL6qSSD
9j8cBqHYZiLkyxRIDAAGqHEADWjLMjAbIhpg4a3pmjQWCg
%2BgYDK9Ypoq0pmi2IHYG6MBkcMuRfDQhpXhOAC6QA&page=plagiar
ism&breadcrumbs=true
APPENDICES

68
APPENDIX A
LETTER OF REQUEST TO CONDUCT A STUDY (Respondents)
December 20, 2022
Dear Sir/Madam,
I am RELENE SHEMA DISPO SALAZAR, taking up Master in Business
Administration at the University of Pangasinan Phinma. This
survey serves as a requirement in our Business Policy. The major
idea behind this extensive questionnaire is to determine the
feasibility of our business proposal the SHEMASSAGE. Today we
will be gaining your thoughts and opinions in order to better
serve you in the future. Please take a few minutes of your time
to fill in the following survey. Rest assured that all answers
you provide will be kept in the strictest confidentiality.
Thank you!

69
Very truly yours,
RELENE SHEMA DISPO SALAZAR

Researcher
NOTED:

Business Policy Instructor
APPENDIX B
SURVEY QUESTIONNAIRE
(Target Market)
Direction: Please provide the necessary information as
requested in the proper space provided for the items. Where
options are given, indicate your response with a check mark
(√). Kindly answer all the items.
Profile of the Respondents
Name Optional) __________________________________________
Address Optional) _______________________________________
Gender
Male _____ Female _____
Age
18y/o & Under _____ 19y/o – 25y/o _____
26y/o – 35y/o _____ 36y/o – 45y/o _____
46y/o – 60y/o _____ 65y/o & above _____

70
Employment Status
Employed _____ Un-employed _____ Student ______
1. Have you ever been tried or experienced a body massage?
______ Yes (If your answer is “Yes”, please answer only
the question #2 to question #5 below).
______ No (If your answer is “no”, please refer to
question #6 and question #7 below).
2. To whom do you often get a massage service?
______ Licensed Therapist
______ Trained Individual
______ Others(Please specify)
3. Where do you usually avail a massage service?
______ Home service
______ Hotel Service
______ Massage Parlor
4. What type of massage service do you primary receive and
how much do you pay for it? (Please rank the three
primary services you avail from 1 to 3, where 1 is the
services you frequently take and 3 is the least one).
Type of Massage Cost Rank
0 Aromatherapy massage __________ _________
0 Back massage __________ _________
0 Deep tissue massage __________ _________

71
0 Pregnancy massage __________ _________
0 Reflexology __________ _________
0 Regular massage __________ _________
0 Shiatsu massage __________ _________
0 Sports massage __________ _________
0 Swedish massage __________ _________
0 Thai massage __________ _________
0 Hot stone massage __________ _________
0 Ventosa massage __________ _________
0 Other: __________ __________ _________
5. How often do you get a massage service?
______ Once a week
______ Twice a week
______ Once every 2 weeks
______ Once a month
______ Others Please specify
6. In relation to your response to question #1, please
indicate your reason/s below why your answer is “No”.
___________________
___________________
___________________
7. By any chance, are you open to experience or do you want
to avail a massage service?
______ Yes

72
______ No
8. Based on your answer to question #7, If you chose “Yes”,
what type of massage service do you want to experience,
how much are you willing to pay and how frequent do you
want to get a massage? (Please refer to questions #5 and
#6, options).
APPENDIX C
LETTER OF REQUEST TO CONDUCT A STUDY

(RESPONDENTS)
Date: ________
Dear Sir/Madam,
I would like to ask your permission to allow me to conduct a
survey in your office. This in view of my Business Policy
Proposal, entitled, “SHEMASSAGE”
Attached herewith is the survey questionnaire for this
study.
Rest assured that all data gathered will be treated with
outmost confidentiality and will be used for academic
purposes only.
I fervently hope for your favorable response on this
request.

73
Very truly yours.
Relene Shema D. Salazar

Researcher
NOTED:

Business Policy Adviser
APPENDIX D
SURVEY QUESTIONNAIRE
(Massage Parlor Owner)
Direction: Please provide the necessary information as
requested in the proper space provided for the items. Where
options are given, indicate your response with a check mark
(√). Kindly answer all the items.
Profile of the Massage Parlor Owner
Name Optional) __________________________________________
Address Optional) _______________________________________
Length of Operation
_____ 1 -5 years
_____ 6 – 10 years
_____ More than 10 years

74
Type of Business
_____ Sole Proprietor
_____ Partnership
_____ Corporation
Capital Investment
_____ Less than PhP100,000.00
_____ PhP100,001.00 – 200,000.00
_____ PhP200,001.00 – 300,000.00
_____ Above PhP300,000.00
1. What are the services do you offered and how much their
prices?
Type of Massage Price
Aromatherapy massage ____________
Back massage ____________
Deep tissue massage ____________
Pregnancy massage ____________
Reflexology ____________
Regular massage ____________
Shiatsu massage ____________
Sports massage ____________
Swedish massage ____________
Thai massage ____________
Hot stone massage ____________

75
Ventosa massage ____________
Other: __________ ____________
2. What are the services that frequently availed by your
customers? Please rank
Type of Massage Rank
Aromatherapy massage ____________
Back massage ____________
Deep tissue massage ____________
Pregnancy massage ____________
Reflexology ____________
Regular massage ____________
Shiatsu massage ____________
Sports massage ____________
Swedish massage ____________
Thai massage ____________
Hot stone massage ____________
Ventosa massage ____________
Other: __________ ____________
3. How many customers do you give service in a day?
_______ 1 – 10
_______ 11 – 20
_______ 21 – 30
_______ Others (Please specify)
4. Do you do a home and hotel service?

76
_____ Yes
_____ No
5. Based on your answer to question #4 if your answer is “Yes”,
around what percentage of your customers chooses to avail home
or hotel service?
________ 1% to 10%
________ 10% to 30%
________ 30% to 50%
________ Others (Please specify)

77

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A BUSINESS POLICY PAPER FOR SHEMASSAGE

A Proposed Business Policy Paper

RELENE SHEMA DISPO SALAZAR

This is to certify that we have read the business

policy paper of RELENE SHEMA D. SALAZAR entitled,

“SHEMASSAGE”. She defended the same before an Oral

Examination Committee on March 16, 2019. The committee found

the business policy paper acceptable and has successfully

passed the Oral Defense.

PINA T. COCHANGCO, DBA

Business Policy Paper

This is to certify that RELENE SHEMA D. SALAZAR was

admitted to candidacy for the degree Master in Business

Administration as of March 27, 2023 after passing the

Comprehensive Examination in her Basic, Concentration and

JOSEPH RICHARD O. MEJIA, Ed.D.

Business Policy Paper

The proponent would like to acknowledge with profound

gratitude and sincere appreciation the following people who,

in one way or another, shared their utmost personal

professional assistance and untiring services that made this

study a priceless reality:

NAME, Faculty member of School of Graduate and

Professional Studies and adviser in this business policy

paper for sacrificing her time in guiding, providing,

suggesting and encouraging the researcher, her

insurmountable effort, helpful ideas and advices and

contribution to the planning and completion of this paper;

NAME, Faculty member of School of Graduate and

Professional Studies and Panel Member for her satisfaction,

helpful ideas, pieces of advices and valuable time and

effort to finish this paper;

NAME, Faculty member of School of Graduate and

Professional Studies for sharing ideas to researcher on how

to make a good business policy paper;

Respondents, for their overwhelming cooperation and

honest responses in answering the questionnaires;

MBA Students, especially the proponent’s classmates in

Master in Business Administration for their generosity in

Business Policy Paper

And above all, to the LORD ALMIGHTY, for giving the

researcher patience when they are about to give up,

thank you so much.

Business Policy Paper

This business policy paper is lovingly dedicated to

researcher’s FAMILY who always there to support her during

simple way it helps her to be strong and to become

successful as time goes by towards the near future.

Business Policy Paper

Certificate of Admission to Candidacy for

Table of Contents . . . . . . . . . . . . . . . vii

Executive Summary . . . . . . . . . . . . . . . xvi

Chapter 1 COMPANY PROFILE

Strategic Analysis of the

One of the Workforce . . . . . . . . . . . 6

Customer Retention and Loyalty. . . . . . . . . 6

Corporate Social Responsibility . . . . . . . . 7

Chapter 3 MARKETING ANALYSIS

Business Policy Paper

Demand and Supply Analysis . . . . . . . . . . . 12

Chapter 4 SERVICES AND OPERATION MANAGEMENT

Materials and Equipment Handling . . . . . . . . 46

Chapter 5 Human Resource Management