J-Payment Center

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

iii
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

x
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)

1
Business Name
Business Logo
Services Offered
Pay Bill
*Electric Bill
*Water Bill
*Cable
*Internet
*Telecoms
*Credit Cards
*Loans
*Government
2
*Insurance
*Transportation
*Reals Estate
*Healthcare
*Schools
*Others
Load
* Globe
* Tm
*Gomo
* Cherry Prepaid
* Smart
* TnT
* Dito
Cash In & Cash Out
Bank Transfer

3
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

5
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
Management Challenges
Demographic Challenges
Getting new Clients and Keeping Them
Building Bran Reputation and Maintaining it

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Chapter 3
MARKET ANALYSIS
A great business concept and a good product or service are
worthless if the entrepreneur knows nothing about his market,
always remember that not every product is suitable for everyone,
no matter how good it is. The value of quality products and
brilliant ideas would be lost, and the chance to survive in the
market for a long time would end immediately. According to
Ackerman (2019), successful business owners should know their
markets, understand the wants and needs of their competitors and
target markets, and gather all the information needed to keep
their businesses competitive.
To understand the market of J-Payment, the Proponent
conducted thorough research, he spent 2 nights in Dagupan where
J-Payment is located to observe the environment of the location
of his target markets, and he also interviewed the vendors,
marketgoers, porters, and some staff of establishments that
offers same products/services of J-Payment. The findings of
Proponent about the result market analysis that he conducted are
discussed in this chapter below.

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Target Market
In order for a business to stand and run, it needs to
earn profits, where, the source of profit of the business
comes from its customers. Therefore, it is imperative for
the business owner to clearly identify the target markets of
his business and understand their needs and behaviors and
enabling him craft an effective strategy and be able to
attract more customers which helps the business prospers.
To get an insight into J-Payment target markets the
result of the survey analysis, and the tool, methods, and
procedures used by the Proponent in gathering and validating
the data are discussed and presented below.
The target markets of this proposed business plan are
the people in Dagupan City. Dagupan City has 31 barangays
and based on CITY POPULATION, the total population in this
current year of Dagupan City is 174,302. Not to mention the
number of people coming in every day in the area to perform
business transactions, and those people staying in Dagupan
for a quite long period of time, like students who are
studying in various Universities in the city, foreign and
local, yet, they are just considered as visitors or tourist
and not a residence.

12
Considering the factors mentioned above, such as the
huge population, numerous barangays, and various types of
people with different demographic profiles and preferences;
the Proponent of this study, decided to use stratified
random sampling. Because the data that would be gathered
from the respondents who were chosen by the used of random
sampling could be considered eligible and reliable to
represent the entire population of Dagupan City.
To determine the eligibility and reliability of the
number of respondents, which is 400, the Proponent utilized
Slovin’s Formula with a 5% margin of error. The computation
and the result are shown below:
N
Formula: n= 2
1+ Ne
Where:
N = 174,302, current population of Dagupan City.
e = 5% desired margin of error;
n = the sample size.
Solution:
174,302
n= 2
1+(174,302)(.05 )
n = 399.08 or 399
As shown in the equation above, the eligibility and
reliability test result of using 400 samples to respondents
the entire population of Dagupan is 399.08 or 399. It means,

13
the processes and procedures of the Proponents in conducting
research and results of the study, are 100% eligible, and
reliable.
Respondent’s Profile (Target market)
The number of respondents in this study is 424
individuals, they are the target market (400), and the
competitors’ staff of J-Payment (24). The target markets of
J-Payment are the people in Dagupan City; their demographic
profile in terms of their age, gender employment status are
illustrated in the tables below.
Table ? Frequency Distribution of Respondents’ Demographic
Profile in Terms of their Gender
Gender Frequency Percentage

Male 243 60.75%
Female 157 39.25%
Total 400 100.00%
The table above shows that the number of respondents as
target market of J-Payment are 400; and the percentage of
male respondents in this study is 21% higher than the female
respondents, with a frequency distribution of 243; while the
frequency distribution of female respondents is 157, which
comprised the 39.25% the total number of respondents.
Profile in Terms of their Age

14
Age Frequency Percentage
14y/o and below 74 18.50%
14y/o to 35y/o 145 36.25%
35y/o to 63y/o 148 37.00%
63y/o and older 33 8.25%
Total 400 100.00%
The table above shows that most of the respondents are
14y/o to 63y/o, a 1.75% less of percentage that would
comprise 75% of the total number of respondents, followed by
respondents ages 14y/o and below, with a frequency
distribution of 74, and lastly, the respondents’ who are
63y/o and older, are least in the list with a total 33
frequency distribution only.
Profile in Terms of their Employment Status
Employment Status Frequency Percentage
Students 47 11.75%
Employed 324 81.00%
Un-employed 29 7.25%
Total 400 100.00%
Table above shows the demographic profile of the
majority of the respondents in terms of employment status
are students and working individuals, which comprised more
than 90% of the total number of respondents with their
combined percentage.
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Survey Analysis
The questionnaire is the main tool used by the
Proponent in gathering data for his target markets to his
competitors. It is composed of 2 parts, the first part is
intended to identify the demographic profile respondents in
terms of their gender, age, and employment status, and the
business profile of e-service providers, in terms of length
of operation, type of business, and capital investment; and
the second part contains questions which designed to measure
the knowledge and awareness of the respondents about e-
wallet and its features and services, also, to assess the
buying or consumption behavior of the respondents to the
products from the providers of electronic services.
Respondent’s knowledge and their behavior of usage of
electronic services – (Target market)
Table ? Frequency Distribution on Respondents in Terms of
their Awareness of the Existence of Electronic Wallet.
Choices Frequency Percentage
100.00%
Yes 400
0.00%
No 0

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Total 400 100.00%
The table ? above and the table ? in next page are
showing that all of the respondents are familiar not just
with the electronic wallets, they are also knowledgeable
about the various features or services of the electronic
wallet.
their Knowledge about Services of Electronic Wallet.
Buying/Sending Load 400 100.00%
Cash In / Cash Out 400 100.00%

Sending Money 400 100.00%
Paying Bills 376 94.00%
Paying or Buying on online stores 298 74.50%
Bank Account Transaction 218 54.50%
Others 15 3.75%
Electronic Services that they have Tried

E-Load 400 100.00%
Fund Transfer 400 100.00%
Bills Payment 400 100.00%

17
All of the respondents have tried or experienced all
the services or products listed in table?. Furthermore,
among these services, as shown in the table below, the e-
load service is most frequent type of service/product avail
by the respondents every day; while the fund transfer type
of service/product, there are 171 respondents or 42.75% of
the total number of respondents who always avail fund
transfer service once a week; and the bills payment service,
is the most seldom type of e-service, that avails by 34.25%
of the respondents, which is also equivalent to 137
frequency distribution of the total number of respondents,
twice a month; and the 65.75% of the respondents, with 263
frequency distribution opted to pay their bills one a month.
how Frequent They Use the Electronic Services
Choices E-Load Percentage

Every day 61 15.25%
Every other day 59 14.75%
Once a week 45 11.25%
Twice a week 217 54.25%
Once a month 18 4.50%
Others 0 0.00%
Total 400 100.00%
Choices Fund Transfer Percentage
Every day 38 9.50%
Once a week 171 42.75%

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Others 0 0.00%
Total 400 100.00%
Choices Bills Payment Percentage
Every day 0 0.00%
Once a week 0 0.00%
Others 0 0.00%
Total 400 100.00%
the Charges They Pay for Using the Electronic Services
Choices E-Load Percentage

₱1.00 to ₱3.00 249 62.25%
₱3.00 to ₱5.00 127 31.75%
₱5.00 and above 24 6.00%
Total 400 100.00%
Choices Fund Transfer Percentage
1% to 2% 256 64.00%
2% to 3% 144 36.00%
3% to above 0 0.00%
Total 400 100.00%
Choices Bills Payment Percentage
₱ 1.00 to ₱15.00 92 23.00%
₱15.00 to ₱30.00 308 77.00%
₱30.00 to ₱45.00 0 0.00%
Total 400 100.00%
Table above shows that most of the respondents are
paying charges ranging from ₱1.00 to ₱5.00, 1% to 3, ₱1.00
to ₱30.00 for e-load, fund transfer, and bills payment
transactions; respectively. In addition, as shown in the

19
table below, the 2 top common establishments where the
respondents do their electronic services transactions
frequently are in the convenience store and sari-sari
stores, which comprised 88.75% of the total number of
respondents, followed by bank and other payment centers
establishments.
Place where they do the Electronic Services
Choices Frequency Percentage Rank

Sari-Sari Store and
other same
303 75.75% 1
businesses
Convenience Store like 7/11 and
52 13.00% 2
other same businesses
Payment center like Cebuana and
31 7.75% 3
other same businesses
Banks establishment 14 3.50% 4
Total 400 100.00%
Respondent’s knowledge and usage behavior (Competitors)
their Awareness of the Existence of Electronic Wallet.

Yes 21 87.50%
No 0 0.00%
Refuses to answer 3 12.50%
Total 24 100.00%
The able above shows that there 3 establishments opted
not to give any information about their business, while the

20
other 21 establishments did participate and answered Yes to
the question about their awareness and knowledge of the
existence of the electronic wallet; and the load transaction
e-services feature of e-wallet is the top product/services
that most usually avail by their customers. Please refer to
the table ? on the next page.
Features of Electronic Wallet that They Offers.
Load Transaction 21 87.50%
Fund Transaction 12 50.00%
Bills Payment 12 50.00%
the Number of Customers They have Per Day.
1 to 25 6 25.00%
25 to 50 13 54.17%
50 to above 5 20.83%
Refused to give info 3 12.50%
Total 24 100.00%

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As shown in the table above, most of the respondents
cater 25 to 50 customers per day; while the other 25% cab
only caters less than 25 customers; however, 20.83% of other
respondents cater at least 50 customers per day.
To sum up, all the data above from the result of the
survey, gathered by the Proponent indicate that the literacy
of the people in Dagupan City in terms of their awareness
about the electronic services and/or products, and its
features, are amazingly at high level. It signifies that the
steps to introduce and promote the products/services of J-
Payment have lessen; which is a good thing for the business,
because the reduction in the promotion to be done to the
product and services of J-Payment, would save time, the
resources, and the funds’ of the Proponent; which, he could
use it to do other things that would help the J-Payment to
be more resilient in the business market; such as creating
or developing a new product or service that tailors the
needs of its target market, or do some renovation of the
business’ physical store. As mentioned in chapter 1 and 2,
the place where J-Payment is located in a flooded area;
resolving this challenge, and being able to create a new
product/and services to be offered, certainly help the
business not just to have a stronger physical store but

22
also, it would make the business to be more productive and
profitable.
Demand and Supply Analysis
Based on the above information, the Proponent was able
to identify the demand and supply of the product offerings
of the proposed business and illustrate it with the use of
the parabolic method.
Table ? Annual Historical Demand for 2018 to 2022
Total Market Historical

Year Population Acceptability Demand
2018 163,745 100% 163,745
2019 165,596 100% 165,596
2020 167,468 100% 167,468
2021 169,359 100% 169,359
2022 171,271 100% 171,271
Table above illustrates the total population in Dagupan
City from year 2018 to 2022 and the historical demand for
electronic services with 100% market acceptability.
Table ?. Statistical Parabolic Computation for Demand
Year Y X X2 X4 XY X2Y
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

23
(Y-
Year a b x c X2 Yc Y-Yc
Yc)2
-
2018 167467.657 1881.5 10.0714 4 163744.9429 0.0571 0.0033
2
- -
2019 167467.657 1881.5 10.0714 1 165596.2286 0.0522
1 0.2286
2020 167467.657 1881.5 0 10.0714 0 167467.6571 0.3429 0.1176
-
2021 167467.657 1881.5 1 10.0714 1 169359.2286 0.0522
0.2286
2022 167467.657 1881.5 2 10.0714 4 171270.9429 0.0571 0.0033
TOTAL 0.2286
Year A b x c X2 Yc
2023 167467.657 1881.5 3 10.0714 9 173202.8
2024 167467.657 1881.5 4 10.0714 16 175154.8
2025 167467.657 1881.5 5 10.0714 25 177126.943
2026 167467.657 1881.5 6 10.0714 36 179119.229
2027 167467.657 1881.5 7 10.0714 49 181131.657
2028 167467.657 1881.5 8 10.0714 64 183164.229
σ=
√ 183164.299
5
Standard deviation (σ) = 0.21
As shown on the result of standard deviation in
computing future demand is 0.21, it means that data and the
procedure that used in forecasting future demand for
electronic service/products are correct and reliable. Which
is also reflects in the table below, showing that the annual
and daily demand is gradually increasing.
Table ?. Actual Target of Daily Demand
Year Projected Target Actual Actual

24
Target of
Annual Percentage of Target of
Annual
Population Target Market Daily Demand
Demand
2023 173,203 15.00% 25980 71
2024 175,155 18.00% 31528 86
2025 177,127 21.00% 37197 101
2026 179,119 24.00% 42989 117
2027 181,132 27.00% 48906 133
2028 183,164 30.00% 54949 150
Market Positioning
Based on the information and gathered by the Proponent,
he decide not to have a specific market position. The price
of the product/services of his proposed business would
depend on various factors, such us customer’s capability of
paying, status of weather, availability of competitors, mode
of customers, behavior of customers, time of transaction,
etc.; On the other hand, the friendly service approach to
all customers is the thing that won’t change of his
business’ service.
HIGH QUALITY
HIGH LOW
PRICE PRICE
Business LOW QUALITY

Policy Paper
25
Figure ? Market Positioning
The figure above indicates that the market positioning
strategy of the J-Payment has no specific position, which it
could vary any time
Market Segmentation
The proponent used demographic, psychographic, and
behavioral types of market segmentation. As mentioned above
on market positioning, the price of Proponent’s products or
services would vary depends various cases and situations.
Marketing Plan
The purpose of a marketing plan is to help the business
to achieve its goals by acquiring new customers, retaining
current customers, and selling more products to earn more
sales. However, not all marketing plan accomplishes it
goals; and some of the reasons why it fails are because the
plan is unrealistic, budget issue, wrong strategy, and
others. All of these are due to the lack of adequate and
correct knowledge or information about the current status or
situation of the markets.
The Proponent is confidence that he has adequate
knowledge and understand his market based on the actions or

26
effort on how he studied the business’ market environment.
The Proponent would only use to marketing plan, namely;
print ad and promotional strategy.
Print Ad
To give inform the targets of J-Payments about the
existence of its business and about the products/services
that it offers, the proponent would use 2 tarpaulins; one
would be posted outside, in front of the store or
establishment, before the operation starts or opening of the
business; and the other well be kept and used only when the
first one is damaged.
Promotional Strategy
To acquire new and more customers and retain the
current ones, the Proponent would do or give free services
or Zero (₱0.00) charged during the first week of his
business operation. After that, the free charge promo would
only be availed twice a week for a certain period of time.
Other details about this promo would be discussed during
defends.

27
Chapter 4
SERVICE AND OPERATIONAL MANAGEMENT
As they said “Wag kang sasabak sa gyera kung wala kang
dalang bala" or “Don’t go into battle without ammunition”.
J-Payment needs to plan and prepare before its business
operates. This section tackles the requirements, materials,
tools, and equipment that would be needed by J-Payment prior
to starting the operation of its business.
Legal Requirements and Organizational Cost
The list of following documents and requirements, and
its cost that listed are need to be accomplished by J-
Payment before its business starts.
Table ?. Legal Requirements and Organization Cost
Requirements Cost
DTI Certificate of Registration ₱200.00
Barangay Permit ₱900.00
Barangay Plate ₱500.00

28
Sanitary Permit ₱200.00
Fire and Safety Inspection Certificate ₱396.60
Municipal Engineering Building Inspection ₱4,000.00
Occupational Permit ₱340.35
Building Permit ₱200.00
Business Plate ₱60.78
Business Tax ₱1,320.00
Mayor’s Permit ₱850.86
Receipts ₱15,000.00
BIR Registration ₱1,320.00
Social Security System ₱0.00
Philippine Health Insurance Corporation ₱0.00
(PHIC)
Home Development Mutual Fund (HDMF) ₱0.00
Total ₱25,288.59
Table above shows that J-Payment needs to expend
₱25,288.59 for documents and requirements to open a business
and an additional ₱1,500.00 for book keeper; which is a
total of ₱26,788.59.
Materials
The list of material, equipment and supplies that are
needed for the transaction operation of the J-Payment
business are as follows:
Table ? Equipment, Materials, Supplies
Unit
Particular Description Source Pcs Amount
Price
Computer
Online Store 1 ₱7,000 ₱7,000
Set
Smart
Online Store 1 ₱3,500 ₱3,500
Phone

29
CCTV Online Store 2 ₱700 ₱1,400
Internet PLDT 1 ₱1,400 ₱1,400
Dagupan Public
Chairs 10 ₱150 ₱1,500
Market
Dagupan Public
Cup 20 ₱18 ₱360
Market
Dagupan Public
Glass 20 ₱10 ₱200
Market
Glass & Dagupan Public

1 ₱340 ₱340
Cup Rack Market
Spoon & Dagupan Public

5 ₱15 ₱75
Fork Market
Spoon & Dagupan Public

1 ₱25 ₱25
Fork Rack Market
Dishwashin
g Soap Dagupan Public
5 ₱60 ₱300
(Good for Market
1 year)
Detergent
Soap(Good Dagupan Public
10 ₱75 ₱750
for 1 Market
year)
Dagupan Public
Sponge 10 ₱15 ₱150
Market

30
Dagupan Public
Dipper 2 ₱20 ₱40
Market
Pail Dagupan Public

2 ₱45 ₱90
(Timba) Market
Dagupan Public
Mop 2 ₱250 ₱500
Market
Dagupan Public
Trash Bin 1 ₱180 ₱180
Market
Dagupan Public
Dust pan 2 ₱30 ₱60
Market
Broom Dagupan Public

2 ₱45 ₱90
Stick Market
Dagupan Public
Floor Mat 5 ₱60 ₱300
Market
Garbage
Bag (Good Dagupan Public 12
₱5 ₱600
for 1 Market 0
year)
Dagupan Public
Boots 3 ₱120 ₱360
Market
Dagupan Public
Pen 1 150 ₱150
Market

31
Coupon Dagupan Public
3 ₱100 ₱300
Band Market
Filling Dagupan Public

2 ₱120 ₱240
Rack Market
Medical Dagupan Public

1 ₱250 ₱250
Kit Market
The table above is showing the cost needed of J-Payment
for materials, equipment, and supplies is ₱20,160.00, and an
additional ₱500.00 for a tip or variable costs. All in all,
it is ₱20,660.00.
Capital or Investment
The grand total of the amount needed to be invested for
J-Payment is ₱200,668.59, and this is financed by the
Proponent from his own pocket.
Table ? Capital Invested
Category Amount
Legal Documents & Requirements ₱26,788.59
Contract Lease ₱18.000.00
Equipment, Materials, & Supplies ₱20,660.00
Advertisement ₱220.00
Renovation ₱35,000.00
Running Capital ₱100,000.00
Total ₱200,668.59

32
The table above is showing the breakdown of the
category of the invested capital. The least of the expenses
or budget is for advertisement which is P220.00, the
contract lease expense is ₱18,000.00, for 2 months deposit
and one month advance, while the running capital got the
highest budget of ₱100,000.00.
Floor Plan
Floor Plan Layouts The figure below is the floor
layout of J-Payment, there are 2 windows in the counter, 8
chairs in the front where customers can seat, and a toilet
and sink.

33
Figure ? Floor Plan

34
Process Planning
The service transaction plan of J-Payment is composed
of 4 parts or process. Firs is greeting, employees should
always greets all the people enters the premises; the second
process it probing, building rapport, analyzing customers,
process transaction, do some up selling by offering other
services or products; the third is, confirm the transaction
if its successfully done or not; if not, repeat the second
step and third step, and once the transaction is confirmed
successfully, move to final steps; the good bye greetings.
Welcome Greetings
Probing/Rapport/Process
Transaction
Confirm transaction
Goodbye Greetings
Figure ?. Service Transaction Process
The figure illustrates the 4 steps of service
transaction process of J-Payment.

35
CHAPTER 5
HUMAN RESOURCE MANAGEMENT
The human resource department plays a big and vital
role in every organization, it deals with issues to
compensation, performance management, organization
development, safety, wellness, benefits, employee
motivation, training and others. An effective human resource
management can contribute momentous contribution to the
overall company direction and the accomplishment of its
goals and objectives.
This section deals with the task of human resources
management of J-Payment and its importance to the business.
Business Structure
Considering the number of target customers per day and
the number of products and services offered by J-Payment,
The proponent chose to establish the business as a sole
proprietorship managed by two (2) people only.

36
Owner/Manger
Asistant
Figure ? J-Payment Organizational Structure

As presented in figure above the management of J-
Payment is composed of 2 people, the owner and assistant.
The owner or manager and the assistant are both responsible
for day-to-day transactions and operations of the business
except for hiring people, if the owner decided to add
additional staff, he would do the task by himself or by the
manager.
Personnel Plan
Personnel plan is essential to ensure operational
success. The table ? outlines the job positions, numbers,
salary, and qualification of personnel; and the job
description.
Table ? Personnel Plan of J-Payment
Job Salary Per

Position Number Qualification
Description Day
Manager 1 With integrity Hiring and ₱600.00

37
and honest firing
employee/s.
Possess
leadership Supervising
skill employee
Possess Promoting
Organizational the
skill business
Possess strong Process

analytical Payroll
skills
Document
Good in oral expenses
and written and hand in
communication, reports
Observant and Follow and
detail oriented maintain
knowledge
At least 6 and safety
months
experience Maintain
cleanliness
At least Senior of the
high graduate premises
Can work under
pressure
Can work at
graveyard shift
Can work for

long hours of
time
Can do multi-
task
Preferably
single but not
required
Friendly and
Bubbly
Good and

38
pleasing
Personality
Can deal to
different
personalities
of customers
Open-minded
Physically fit
Assistant 1 With integrity Supervising ₱500.00
and honest employee
Observant and Promoting

detail oriented the
business
At least Senior
high graduate Follow and
Can work under maintain
pressure knowledge
and safety
Can work at
graveyard shift Maintain
cleanliness
Can work for of the
long hours of premises
time
Can do multi-
task
Preferably
single but not
required
Friendly and
Bubbly
Good and
pleasing
Personality
Can deal to
different
personalities
of customers

39
Open-minded
Physically fit
Staff With integrity Promoting ₱450.00
and honest the
business
Observant and
detail oriented Follow and
maintain
At least Senior knowledge
high graduate and safety
Can work under
pressure Maintain
cleanliness
Can work at of the
graveyard shift premises
Can work for
long hours of
time
Can do multi-
task
Preferably
single but not
required
Friendly and
Bubbly
Good and
pleasing
Personality
Can deal to
different
personalities
of customers
Open-minded
Physically fit
Can work at
graveyard shift
Can work for

40
long hours of
time
Can deal to
different
personalities
of customers
Can work at
graveyard shift
Physically fit
The table above shows the list of jobs in J-Payment,
the number of employees required for these jobs, the tasks
that must be performed by the employees and the size of
amount salaries. As part of its strategy, the Proponent
preferred to hire female applicants, particularly single
people, over male applicants. Because J-Payments' target
markets are male-dominated, and; Men prefer to shop in a
store where the clerk is a woman.
Recruitment Process
Behind a successful company are the hard-working
employees; employees, who can also be a cause for the
failure of a company. Therefore, hiring the right people is
as important as finding right target markets and developing
quality products for a company. The Proponent has outlined
the recruitment process in the table below, which serves as
a guide for J-Payemnt to ensure the business hires the right
people.

41
Figure ? Hiring Process
The figure above is showing the diagram of the 7 steps
hiring process of J-Payemnt, namely: identifying vacancy,
recruitment, interviewing, selecting/hiring, orientation,
training, and deployment. The initial process of hiring
employees of J-Payment is identifying the vacancies –
finding what specific job or task that needs someone to take
care of; once it’s identified, dissemination of info about
the vacant position will be communicated to people who are
looking for work; next is step is an interview, the owner or
manager would interview all the applicants to assess their
qualifications are suite for job vacancy; the next step is
the selection process, the owner or manager will pick the
best person that he/she thought perfect for the job; after
picking, the lucky applicant undergo orientation and a job
contract; the next step is training, all the things that

42
need to know like the process on how to do the job will be
taught to the trainee; finally, once the trainee becomes
knowledgeable enough for the job and can work with minimal
supervision, the owner or manager will now deploy the
trainee and tag as official employee.
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
J-Payment considers its employees a key resource to
achieve its goals. They are the most important people who
bring revenue to the company. Therefore, it is very
important to properly care for and treat them. One way to do
this is to offer them a good salary; ₱600.00 for the

43
manager, ₱500.00 and ₱450.00 for the staff, which are higher
than the declared minimum according to the guidelines of the
Department of Labor and Employment (DOLE) in Dagupan City.
Another option is to pay them a 14th month salary to be paid
every semester and this is in addition to all the government
mandated benefits such as SSS, Pag-IBIG and PhilHealth, 13th
month salary, overtime pay and vacation pay, night
differential pay and others . All employees shall receive
all of the above benefits and compensation, with the
exception of the owner, who derives his income from the
withdrawals.
Operational Policies
As they say, “Nobody’s perfect”, Yes, everyone can
make mistakes; mistakes that may lead to bad results. It
means no matter how good the employee is, he/she could still
commit mistakes that could harm the company and end up in
the closing of business. Therefore; the Proponent created
the following policies listed below that every employee of
J-Payment should comply.
1. Timely and regular attendance is an expectation of
performance for all employees and should arrive earlier,
before their shift commence; repeated tardiness and/or
absenteeism are strictly prohibited and punishable.

44
2. Employees must notify management 1 hour before their
assigned schedule if they are absent or late for work.
3. Only sign-in and sign-out made through computer shall be
honored for acknowledging attendance of employee. Manual
recording only valid if computer got issues but time-in
and out must be signed by immediate superior.
4. No employee may consume alcohol during work or be under
the influence of alcohol. Any employee who comes to work
under the influence of alcohol must not work.
5. If employees need or want to resign, they must submit a
letter of resignation 15 days before the actual
resignation date; they must also perform while management
is still looking for someone to replace their position if
their resignation request is approved. In addition, the
employee must obtain exit clearance to receive their
remaining salary or benefits.
6. Working for others is not allowed. This policy is
designed to limit an employee's ability to work for
others to protect the employer. The Company prohibits an
employee from working part-time for a competitor to
prevent disclosure of confidential information. If an
employee leaves the company to work for a competitor,
he/she may be required to sign a non-compete agreement
preventing him/her from doing business with the company's

45
customers for a period of time or even to reach out to
her.
7. Using of personal cellphone while on duty is strictly
prohibited. Bags and other belongings are not allowed
inside the workstation. Lockers in the crew room are
provided by the company for the safekeeping of their
valuables.
8. Unhealthy conversation, discrimination, acts of violence
and lasciviousness will not be tolerated in the
workplace. Anyone found to be doing any of this will be
reprimanded.
9. Employees are expected to conduct themselves in the
workplace in a way that contributes to operational
effectiveness, productivity, safety and a harmonious work
environment.
10. Customers should always be treated with respect and
joy. Any bad comment about customer service will be taken
seriously to the staff involved.
11. If employees did not meet the company's standards of
conduct or performance, necessary corrective action will
be taken. Management may, in its sole discretion,
determine what course of action would be best in any
situation.
Table ? Policy Violation and Sanction

46
Violations Sanctions
Salary deduction / Warning/

Tardiness / Absence
Suspension / Termination
Working under influence of

Suspension / Termination
alcohol
Negligence resulting to Salary deduction / Warning/

damage or loss of property Suspension / Termination
Taking illegal drugs Suspension / Termination
Theft Suspension / Termination
The table above shows violations and the corresponding
sanctions imposed on employees who committed the listed
violation or related action.
Chapter 6
FINANCIAL ANALYSIS

47
Chapter 7
PESTLE AND SWOT ANALYSIS
In this section the Proponent of this study has
realized that having knowledge about the demographic status
of his target markets and competitors is insufficient to
ensure that his proposed business would be able to stand and
operates for a long period of time. He found out that there
are other factors that can have a profound impact on the
performance of his proposed business; such as the status of
the business industry, rules and regulation or law, and the
internal and external factors of the business environment.

48
These factors need to be carefully analyzed in order to
understand its impacts on J-Payment’s business operation,
and in order to this, the Proponent utilized the PESTLE and
SWOT analysis.
PESTLE Analysis
PESTLE analysis is one of the business analysis models
that commonly use to understand the external factors of
business environment; such as politics, economics, and
social, technological, legal, and environmental factors
which are mainly outside of the business owner’s control.
Political Factors
The Executive Order No. 09 signed by President
Ferdinand “Bongbong” Marcos, Jr. dated December 2022 has a
direct and huge impact for J-Payment. The E.O. No. 9 is a
directive extending or prolonging the continuation of the
suspension of the operation nationwide of E-sabong/online
cockfights; but, for J-Payment in the business aspect, the
E.O. No. 9 means “Loss of Sales”; a directive that prevents
its business from earning more.
E-sabong or online sabong is a live-streaming or
broadcasting of live cockfights outside cockpits or
cockfighting arenas or premises where cockfights are being
held. The People who are watching online of e-sabong and

49
want to bet need to use e-wallet; and an e-wallet is one of
the tools used by J-Payment in its business.
Furthermore, other issues under political factors that
may affect the business operation of the J-Payment are the
officials and/or the Managers of the Bureau of Internal
Revenue (BIR), Proponent found out that the corruption of
these individuals is rampant, especially during the holiday
season; the info was gathered by the Proponent from one of
the respondents that he interviewed, and the if was also
verified by 2 other respondents, that they experienced it by
themselves, extorted by those officials.
Economic Factors
Based on the study conducted by Philippine Statistic
Authority, the unemployment rate in December 2022 went up to
4.3% from 4.2% in November 2022. A 4.3% unemployed Filipino
translates to 2.22 million jobless Filipinos with no source
of income. Unemployed people tend to spend less which costs
low sales and profits of J-Payment.
Social Factors
Considering that J-Payment is a new entrant in the business
market, getting clients would be one of the first challenges that
the business may face, and it would be more difficult for J-
Payment if its target markets are already loyal to J-Payment’s
competitors, considering some of them have been in the industry

50
for more than 5 years. Which is also shows to a recent study by
market research firm Nielsen, an estimated 80% of savvy
Filipino consumers would buy new products from well-known
brands rather than switch to a new brand.
pposition throttles the growth

of the business and the
benefits that people are
getting. Some people may not
even realize they became so
complaining about
getting low coverage and
strongly disagree to the
enhancement and expansion
of area coverage. Many are
afraid of cell sites and many
are in favor of it. One,

51
two or more households
maybe in favor of it but a
whole barangay who
disagrees can make or break
the growth that’s necessary for
the many.
Opposition throttles the
growth of the business and the
complaining about

52
whole barangay who
the many
pposition throttles the growth
of the business and the
complaining about

53
whole barangay who
the many.
Technological Factors
Based on the World Data Lab study, the Philippines
ranks 38th in terms of percentage of population with poor
internet service. This equates to over 58 million Filipinos
and places the country 7th in the world with the greatest
number of bad internet connections and 1st in Southeast

54
Asia. This poor internet condition could have a big effect
on J-Payment in could result not only in lost revenue but
also in losing customers as well. In addition, the
technological factor is the most concern factors of the
Proponent under PESTLE analysis, for his proposed business.
Proponent believes that the e-services/products offered by
the J-Payment will be gone and the near future. At the back
of his mind, he sees a vision that each country in this
world would be turned in to a total cashless society from
current status now. The paper bill and coins will lose its
value and will disappear forever.
Legal Factors
Along with the development of technology in the
country, the methods used by people in their wrongdoings are
also becoming high-tech to conceal their illegal activities;
most of them used e-services for money laundering. Money
laundering is an illegal process whereby assets or cash
obtained from criminal activities are made to appear to come
from legitimate sources. Put simply, money laundering makes
dirty money look clean.
The Philippines is considered susceptible to money
laundering and terrorist financing due to its growing
economy and geographic location within key trade route;
furthermore, in many cases, the authorities can only uncover

55
money laundering activities when officials or employees
report suspicious financial transactions to the authorities.
Therefore, on September 26, 2023 the Philippine Government
passed RA NO. 10365, also known as “Anti-Money Laundering
Act of 2001” to strengthen the RA 9160, an act criminalizes
unlawful activities such as graft and corrupt practices,
fraudulent practices, robbery and extortion, swindling and
plunder, amongst other activities.
J-Payment belongs to business sectors selected by the
law to be fully compliant with the rules and regulations
mandated under AMLA, if J-Payment fails to report such money
laundering activities the management may face imprisonment
from 6 months to 4 years and/or a fine of at least
₱100,000.00.
The Proponent ensures that J-Payment is compliant with
the anti-money laundering regulations in the Philippines.
Furthermore, this is also one of the reasons why being
observant, and detailed oriented is a required qualification
of the employees; also in chapter 4, under business process
is “PROBING”.
Environmental Factors
The tools used for the operation of e-services are
electronic gadgets, such as smartphone and computers. Based
on the study conducted by the McMaster University in Canada,

56
among the electronic gadgets, such as mobiles, laptops,
tablets, and desktops; smart phones to be the most damaging
of all the devices in the industry to the environment. The
researchers have found out after calculating the carbon
footprint comes from smart phone, that this gadgets and data
centers will be the biggest carbon foot print emitter by
2040 in the tech industry. In the case of J-Payment, the
least that the Proponent can do is ensure that the whole
management of its business will be more responsible in the
proper use of tools so that they can use it for a long
period of time. In that way, the production of these kinds
of gadgets will be reduced. Moreover; on the other hand, e-
service businesses are using less paper products compare to
other businesses that process their service in traditional
way. This can help reduce an organization’s carbon footprint
by reducing or eliminating paper waste.
Table ? J-Payment’s PESTLE Analysis

Factors Analysis
Rampant corruption; The Proponent was not
shocked he found out, but he it made him
Political makes him felt disappointed. A Death Penalty
Law for corrupt government officials must be
filed. They are the cancer of the country.
Unemployment, creates domino effects
Economic inflation, interest rate and exchange
change, so corruption must be stop.
Loyalty is one of the best thing and hardest
Social
to earn for a new entrant business.

57
The country has the poorest inter service in
Technology the world, which hindrance the nation for
new opportunity
RA 9160 – The country is vulnerable for
money Laundering; In order to be used in
Legal illegal activities by others, management
must be knowledge about this business
particularly in law.
One of main tools used of J-Payment is the
Environment most producers of carbon foot print; on the
other hand, it helps reducing paper waste.
SWOT Analysis
SWOT analysis is one of the business analysis models
commonly used to get a better picture of the company's
internal and external factors, specifically the company's
strengths, weaknesses, opportunities, and threats. The SWOT
analysis of J-Payment is illustrated below.
Table ? J-Payment’s SWOT Analysis

INTERNAL
STRENGHTS WEAKNESSES
New in the market
24/7 Service
Long hours of period of
Employees
works
Stiff Competition
Business strategic location
Location
Internet Connection
Customer support from E-

wallet
OPPORTUNITIES THREATS
Opportunity to help the
environment and the
Stiff competition
government
Open new branch Technology

Offer new product and
Corrupt Officials
service

58
EXTERNAL
The table above shows the strengths, weaknesses,
opportunities, and threats of J-Payment that will be used by
the Proponent of this business, as his basis in creating a
plans or strategies and in making decisions for his
business.
The Proponent’s analysis is discussed on the next page.
STRENGHTS
J-Payment is located in the business center of Dagupan,
it is one of the best strategic places in the area where
most people can be seen in this place. The business is run
by 2 people, the owner/manager, and the staff; both know
their products and services and how to market to their
customers; they are also bubbly, hardworking, and possess
integrity where they can easily win the hearts of customers
to trust them.
WEAKNESSES
J-Payment’s managements are aware that their business
is new in the business market; getting new customers would
be a slight challenge to them, considering the rigid
competition with their competitors is a little bit tough,
and also for knowing that some of them have already been
built their brand and reputation to their customers for

59
being in the market for more than 5 years, which made them
have loyal customers.
In addition, the internet service and e-wallet tools
provider of J-Payment frequently experience service or
disconnection issues, not to mention that their customer
services are hard to reach, which might cause unsatisfied
and disappointed customers.
Furthermore, the geographic structure of the J-Payment
site is a floodplain, where even without rain, there still
flooding, especially during the high tide season, which may
result in the interruption of the business.
OPPORTUNITIES
J-Payment could create new products or services for
business diversification, considering the business is
situated in a busy site with numerous people, J-Payment
could still get a new market; or put up a new branch in a
different area, because this type of business belongs to a
fast-growing industry.
THREATS
J-Payment might lose due to the rapid development of
technology, and the current products and services offered by
J-Payment might not be needed in the near future by its
customers.

60
J-Payment and other companies may choose to stop their
businesses if these corrupt officials do not change their
wrongdoing; as mentioned earlier in this chapter, these
types of leaders are the cancers of our nation, not only
ruining our country's progress but slowly killing it.
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

61
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.
https://www.philstar.com/headlines/2022/10/05/2214382/pinoys-
lost-millions-dollars-text-scams-government
PINOYS LOST MILLIONS OF

DOLLARS TO TEXT SCAMS –
GOVERNMENT
Subscribe
Elijah Felice Rosales - The Philippine Star

October 5, 2022 | 12:00am

62
https://www.irishnews.com/magazine/science/2018/03/02/news/how-
our-smartphones-are-hurting-the-environment-1268849/
HOW OUR
SMARTPHONES ARE
HURTING THE
ENVIRONMENT
8 March,
2023
https://psa.gov.ph/content/unemployment-rate-december-2022-
estimated-43-percent
UNEMPLOYMENT RATE IN DECEMBER 2022 IS ESTIMATED

AT 4.3 PERCENT

63
https://www.bworldonline.com/infographics/2022/04/18/442463/
philippines-most-internet-poor-in-southeast-asia/
PHILIPPINES MOST ‘INTERNET POOR’ IN SOUTHEAST ASIA
https://business.inquirer.net/104521/filipino-consumers-more-
brand-loyal-than-global-peers-nielsen-study-
finds#:~:text=Filipino%20consumers%20more%20brand%20loyal%20than
%20global%20peers%2C%20Nielsen%20study%20finds,-By%3A%20Daxim
%20L&text=An%20estimated%2080%20percent%20of,by%20market
%20research%20firm%20Nielsen.

64
FILIPINO
CONSUMERS MORE
BRAND LOYAL THAN
GLOBAL PEERS,
NIELSEN STUDY
FINDS
July 10, 2022
By: Daxim L. Lucas - Business News Editor / @daxinq

Philippine Daily Inquirer / 04:57 PM January 26, 2013
Read more: https://business.inquirer.net/104521/filipino-consumers-more-
brand-loyal-than-global-peers-nielsen-study-finds#ixzz7vLBjRujU
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
Chapter 8
STRATEGIC PLAN

65
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
Marketing objectives set out what a business wants to
achieve from its marketing activities. It needs to be

66
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
Ansoff Matrix and is also sometimes called the
Product/Market Expansion Grid.

67
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
many other types of massage and spa services, but wants to
penetrate the market first by offering its limited massage

68
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
five types of massage, along with regular massage and back
massage, are the ones that are popular with respondents.
Diversification

69
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
competitive strategies discussed in Chapters 8 and 9
respectively will not only help company make money but also

70
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.

71
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
action formulated considering several external factors that

72
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.

73
BIBLIOGRAPHY
SKIPPING A STEP: THE

DANGERS OF NEGLECTING
MARKET RESEARCH
Ackermann 2019
https://www.knoxnews.com/story/money/business/2019/07/10/
dangers-neglecting-market-research-cathy-ackermann/
1681472001/
PhilAtlas
Dagupan
https://www.philatlas.com/luzon/r01/pangasinan/dagupan.html

74
https://www.macrotrends.net/countries/PHL/philippines/
population-growth-rate
EXECUTIVE ORDER NO. 9, S. 2022

https://www.officialgazette.gov.ph/2022/12/28/executive-
order-no-9-s-2022/
IRECTING THE CONTINUED SUSPENSION OF ELECTRONIC SABONG
OPERATIONS NATIONWIDE
APPENDICES
APPENDIX A
LETTER OF REQUEST TO CONDUCT A STUDY (Respondents)

75
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!
Very truly yours,
RELENE SHEMA DISPO SALAZAR

Researcher
NOTED:

Business Policy Instructor
APPENDIX B
SURVEY QUESTIONNAIRE
(Target Market)

76
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 _____
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

77
______ 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 __________ _________
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: __________ __________ _________

78
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
______ 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)

79
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.
Very truly yours.
Relene Shema D. Salazar

Researcher
NOTED:

Business Policy Adviser
APPENDIX D

80
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
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

81
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 ____________
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 ____________

82
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?
_____ 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)

83

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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