CHAPTER IV

MANAGEMENT ASPECT

A. INTRODUCTION
This chapter focuses on the company's overall organizational structure. The

management aspect involves a clear and precise identification of duties, authority

flow, and manpower requirements. This paper includes the organizational chart as

well as the qualifications of the individuals involved in the formation of the company's

organizational structure. It must be set up in such a way that it achieves maximum

efficiency. To do this, management must be able to plan all activities in order for a

business to remain dynamic and competitive. This includes human resource

management, financial capability, and new technology.

B. PRE-OPERATING SCHEDULE
i. Conduct a Feasibility Study
The proponents will conduct a study to determine whether or not the product

and business are feasible. To assess a product's viability, proponents must collect

data about the product's familiarity with possible customers using a variety of

instruments and approaches. Because of the country's current situation, which is a

pandemic that inhibits people's contact, the proponents employed a social media

platform to distribute the questionnaire.

ii. Capital Contribution

 Each partner will contribute $15,000 to the initial capital investment, for a total

of $90,000. The remaining expenses that the initial capital may not cover will be

covered by bank loans that will be repaid throughout the course of the business'

operation and will be paid from the profits generated in following years.

iii. Legalization of Business

The business is expected to follow all legal regulations. The requirements

must be submitted within the deadline given. Business permits must be obtained

from the Municipal or City Government, the Securities and Exchange Commission

(SEC), the Bureau of Internal Revenue, the Department of Labor and Employment

(DOLE), the Department of Trade Industry (DTI), the Social Security System (SSS),

and the Philippine Health Insurance and Corporation (PhilHelath).

iv. Plant Rental and Renovation

The proposed business would be established at Kasiglahan Village Dansalan

Market, Montalban Rizal, by the partners. The current location is ideal for the

business' objective of attracting the attention of potential clients. The proponents

estimated that they would spend 5,000 pesos per month on leasing the facility.

Placing tarpaulins and posters will be part of the rented space's renovation.

v. Canvassing and Acquiring of Equipment

During this time, the proponents will begin canvassing and purchasing equipment

needed for product manufacturing and distribution.

vi. Canvassing and Purchasing of Raw Materials

Because the partners have already chosen a specific supplier, the next step is

to communicate and negotiate to them a lower price to avoid negative price

fluctuation in the raw materials needed. If the target supplier refuses to negotiate,

partners should look for another supplier that offers a better deal.

vii. Promotional Campaign

Because the start-up of the company is approaching in this stage, endorsing the

product is the best thing to do.  Based on the results of the conducted questionnaire,

the preferred method to promote Tote bags according to the respondents is through

social media platforms.  The proponents' objective is to make the product well-known

so that people would identify it and purchase it.

viii. Loan on Banks

The capital contribution may not be sufficient to cover all of the expenses

associated with the start-up of the firm. In the event of a capital deficiency, the

partners decided to take a loan.

ix. Start of Normal Operation

The business will begin to operate after all of the necessary requirements have

been met. One of the most effective strategies is to promote the product

continuously during the course of business operations. More customers must be

recruited, and the customer's requests must be met in order for the customer to be

satisfied.

C. OPERATING ACTIVITIES
In every business, product quality is very important. Good product quality not only

makes money, but it also attracts new customers. The company guarantees that the

merchandise will be handled with care. It shall be free of defects for which potential

buyers will not be able to return it. For legal reasons, the company will be registered

and will get a Certificate of Business Registration. The manufacturing process will go

through how the product may be made to a high quality at a reasonable price. This
company will produce at the highest possible level while spending as little expense

as possible. Installing and arranging the computer, equipment, and machine for

incoming bags to be printed begins the operating process. Greeting and welcoming

customers is an important part of satisfying them. Every customer needs to be

helped. If the customer decides to purchase, the payment should be processed as

soon as the production is completed. To increase awareness of the product's

existence, the corporation employs a social media promotion approach. This would

make it simple for customers to inquire about the company and acquire information.

Flyers may also be used as part of the promotion, particularly for people who have

not yet joined a social networking site.

D. ONE YEAR PLAN OF THE BUSINESS OPERATION

Facile Tote Bags is a start-up business dedicated to providing excellent quality

and fashionable tote bags to the residents of the two specific Barangays of

Rodriguez, Rizal, which is Brgy. San Isidro, and Brgy. San Jose. This business will

produce products in a manner that will generate fair cost and best value for present

and future owners, and superior value to our customers. The start-up capital will be

used for inventories, machine, equipment, salaries, legal expenses and other

materials and expenses. The estimated required for start-up financing is P164,394

for the first month and P1,023,978 for the whole year.
 The initial capital will be from the owner contributions, P15,000 each for 6 owners

with the total of P90,000. As the capital is not enough to cover the required fund for

the first, the business will be applying for loan worth P100,000.

The total of initial capital plus loan will be the total cash for start-up of Facile Tote

Bags business. Total cash less the required fund for the first month will be the cash

balance that will maintain the business process.

For the whole

year, the operating activities will continue in process. Along the time, the business

will encounter unexpected competitors, raw materials price changes, and

opportunities. The business plan will be focus on the company's objectives and

obtain a quick source of fund and will be adding employees as the business will

starting to be known. When it comes to renewable taxes and license, the expense is

expected to increase by 1% annually.

The marketing strategy will be based on low-cost factory direct promotions

that will achieve the sales target with a minimal budget. Upon the process, the visual

display in storefront is expected to be available as a promotional strategy that will

attract and expose customers to visit the physical store. On a monthly basis,

newsletters distributed via e-mail keep clients up to date on the latest news and offer

consumers with industry trends by providing them with quick and easy-to-read

information.
 Overall, the most important is the progress of the business by achieving the

company’s goal.

Forming of Ownership
A partnership is a kind of business ownership in which partners pool money,

skills, and other resources and share profit and loss according the partnership

agreement's terms. Each partner's complementing skills and connections can lead to

greater financial results than would be attainable if they worked alone. For the

business to survive longer, mutual support and motivation are required.

Internal Organization
This is a discussion that will be used for the proposed business and it includes

Organizational Chart, Job Analysis and Compensation Scheme.

E. ORGANIZATIONAL CHART
The organization chart is a graphical representation of the key aspects in the

organizational structure, such as the major functions and their respective

relationships between positions in terms of authority and responsibilities. This refers

to the diagram showing the line and staff organizational structure's key functions.
 F. JOB ANALYSIS
The Job Analysis deals with bringing together and evaluating the information

about the content and requirements of individual regarding the specific job in terms

of activities involved and attributes needed to perform the activities. The manpower

is composed of the partners only form the partnership. Each should possess the

qualification in order to undertake an effective and efficient arrangement of resources

in the organization. The Job Analysis is performed by enumerating all positions

needed for the business to operate.

Job Title: General Manager

Job Description:
 Oversees key projects, processes and performance reports, data and

analysis.

 Formulates and administers firm’s policies, directing and coordinating all

divisional unit activities.

  Reviews the outcome of operations, value of costs and forecast of acquired

data.

 Oversees manufacturing flow of materials and labor productivity.

Job Specification:
 Male or Female.

 Must be 25 years old and above.

 Possesses bachelor’s degree or master’s degree in business administration.

 Must have at least two years of work experience in similar or related field.

 Must be able to speak effectively in English language.

 Must have sufficient computer skills and be able to use company-issued

software programs.

 Knowledgeable of office administration procedures and resources

management disciplines.

 Must be able to perform each essential duty and responsibility in a safe and

satisfactory manner.

Job Title: Production Head

Job Description:
 Oversees the production process.

 Coordinating all production activities and operations.

 Plan and draw up a production schedule.

 Decide on and order the resources that are required and ensure stock levels

remain adequate.

 Review worker performance and identify training needs.

  Monitor productivity rates and product standards and implement quality

control programmes.

Job Specification:
 Male or Female

 Must be 22 years old and above

 Possesses bachelor’s degree or master’s degree in business administration.

 Must have at least two years of work experience in similar or related field.

 Must be able to speak effectively in English language.

 Must have sufficient project management skills

 Knowledgeable of good leadership and interpersonal skills.

Job Title: Graphic Designer

Job Description
 Create and design various materials for print and digital collateral

 Ensure projects are completed with high quality and on schedule

 Establish creative direction for the company as well as brand guidelines

 Prioritize and manage multiple projects within design specifications and

budget restrictions

 Perform retouching and manipulation of images

 Work with a wide range of media and use graphic design software

Job Specifications:
 Male or Female

 Must be 22 years old and above

 Possesses bachelor's degree in graphic arts, design, communications, or

related field
  3-5 years of experience in graphic design

 Knowledge of layouts, graphic fundamentals, typography, print, and the web

 Familiarity with HTML and CSS preferred

 Knowledge of Adobe PhotoShop, Illustrator, Sketch, InDesign, and other

graphic design software

 Compelling portfolio of work over a wide range of creative projects

 Strong analytical skills

 Excellent eye for detail

Job Title: Inventory Manager

Job Description:
 Direct the allocation of materials, supplies, and finished products.

 Design strategies to minimize the cost or time required to move goods.

 Review the success of logistical functions and identify areas for improvement.

 Responsible for actual inventory counts; must be knowledgeable about

inventory items to be counted, the counting procedures used, and location of

all inventories.

 Identify items as coming from or belonging to the customer, keep those items

segregated from other production materials/tools, and maintain control of

customer inventory.

Job Specification:
 Male or Female

 Must be 25 years old and above

 Bachelor’s degree in business administration, industrial engineering, or supply

chain management is required.

  A master’s degree in supply chain management is preferred.

 Work experience in logistics, inventory will be considered in lieu of a master’s

degree.

 Need strong communication skills to collaborate with colleagues and do

business with suppliers and customers.

 Critical thinking, problem solving, and organizational skills are a must.

 Project management experience is preferred; a PMP certification is helpful.

 Experience with supply chain software is needed.

Job Title: Press Operator

Job Description:
 Operate printing machine.

 Run several presses with different size and color capacities.

 Prepare machines for printing.

 Install the printing plate with the images to be printed.

 Press operators prepare machines for printing.

 Ink the presses, load paper, and adjust the press to the paper size.

 Ensure that paper and ink meet specifications

 Adjust the flow of ink to the inking rollers accordingly.

 Guide paper through the press cylinders and adjust feed and tension controls.

 Monitor their operation and keep the paper feeders well stocked.

Job Specification:
 Male of Female

 Must be 22 years old and above

 Possesses degree or course related to job

  At least 2 years experience as press operator

 In-depth understanding of basic printing technologies

 Excellent physical strength and stamina

 Excellent time-management skills

 Interpersonal skills

 Strong attention to detail

Job Title: Assistant Editor

Job Description:
 Assist Graphic Designer in designing and developing computer graphics.

 Create graphic packages by utilizing packaging templates.

 Assist in the development of graphical presentations.

 Plan, design and develop graphics based on customer requirements.

 Coordinate with other departments for smooth functioning.

 Perform reviews of artwork to ensure technical accuracy of the layouts.

 Maintain and manage digital files and artworks.

Job Specification:
 Male or Female

 Must be 22 years old and above

 Proven graphic designing experience

 A strong portfolio of illustrations or other graphics

 Familiarity with design software and technologies (such as InDesign,

Illustrator, Dreamweaver, Photoshop)

 A keen eye for aesthetics and details

 Excellent communication skills

  Ability to work methodically and meet deadlines

 Degree in Design, Fine Arts or related field is a plus.

G. COMPENSATION SCHEME
This includes the position of the employees, basic monthly salary, basic
annual salary, total annual salary, the necessary monthly deductions such as SSS,
HDMF, and Philhealth contribution.

Projected Compensation Scheme

ANALYSIS:
Table 3 exhibits the projection for the compensation increased of 10%

annually for five years, due to inflation, economic changes and other factors that

mean the need for increase in salaries.

H. FUTURE PLANS
The business must take a going concern approach and make long-term plans to

ensure that it can continue to operate.  One of the objectives of Facile Tote Bags is

to be well-known by the majority of people not only locally but also globally, thus

these are the future plans that the proponents have devised in order to ensure a

good business.
 a. Employees’ Performance Evaluation
One of the most important criteria is employee performance evaluation, which is

used to determine how productive each person recruited in the business that

directly affects monthly sales. Employees will be more motivated in their employment

if they receive prizes and other benefits if they meet their given quota.

b. Adding New Product Line

The proponents chose to enter a new product line that will be T-shirts and the
like, which are generally tradable and in demand at any occasion. Based on the
demand in the survey questionnaire, which implies that 94 percent of respondents
will buy if we offer personalized design of bags.
c. Renewal of Business Permit
To achieve the going concern approach, the business will be renewed and will
continue to run until it is well-known throughout the country, as long as there are no
losses for the following five years, which is really displayed on our predicted
comprehensive income.

I. BUSINESS POLICIES
 Do not forget to wear your SMILE
 Customers shall be the priority and must treat nicely.
 Always keep in mind to greet and respect your colleagues.
 Bullying and discrimination are not tolerated.
 Dress Code
o An employee must wear its uniform
o During wash day wear white shirt or polo
o Wear black pants/slacks
o Wear comfortable shoes or sandals and avoid wearing slippers
 Attendance and Time off
o Always be on time
o When late provide a valid reason if there is no valid reason, it will be
deducted on the salary
o If you will be absent inform your superior ahead of time.
o Working hours must be follow 8 hrs. per day
 Return/Refund
o A customer must present its receipt.
o The item is damaged or there is a production fault
o Wrong item received
 Security and Safety
o Employees must turn off all machines and equipment after using it.
 o Deadly weapon is not allowed
o No smoking and drinking alcohol inside the business premises.

*Those who are found guilty by not following the policies are subject to either
suspension or termination.