CHAPTER IV MANAGEMENT STUDY

Management is one of the important aspects in establishing a business. It is the performance of

conceiving and achieving desired results by means of group effort consisting of utilizing human talents
and resources.

Therefore, management is considered as the force that runs an enterprise and is responsible for
its success or failure.

This aspect includes a study of the officers and key personnel, basic consideration in forming the
organization, form of ownership, organizational chart and project schedule.

The objective of the management aspect of a feasibility study is to determine the option
effectiveness of the organizational setup and the qualifications of the individuals who will make up the
organization. This aspect will determine the successful realization of the project study.

Objective of the Study

To determine the form of the proposed business,
To analyze the organization and management aspect of the business,
To introduce or present the exact capitalization of the business,
To identify the requirements and qualification, duties and responsibilities, salaries and benefits
of the business manpower,
To illustrate and clearly discuss the flow of the authority and the policies that will serve as guide
of the entire business,

Forms of Business Enterprise

97°Fahrenheit Co., is a general type of business organization where in each individual is partners
and serves as co-owners of the business.
The type of business is a partnership. It is to be registered with the Securities and Exchange
Commission (SEC) for the contract called articles of co-partnership. By the contract of partnership, two
or more persons bind themselves to contribute money, property and industry with the intension of
dividing the profits among themselves.
The most common is the general partnership because it's the easiest, most straightforward and
least expensive to form. It's a partnership where all partners have responsibility for the business and
unlimited liability for business debts. This means that each general partner shares both the benefits and
the obligations of the business.
Each general partner must contribute something to the partnership business. The partner can
contribute funds, property, skills, labor or most any kind of involvement with the business. In return,
each general partner shares the business profits. However, general partners also share the business'
liabilities and losses.
97 f as partnership will be registered with the different government agencies as Securities and
Exchange Commission (SEC), Department of Trade and Industry (DTI), FEASIBILITY STUDIES – KALYE
OCHO Polytechnic University of the Philippines 77 Business Permit and Licensing Office of Paranaque
(BPLO), Bureau of Internal Revenue (BIR) and Social Security System (SSS).
Articles of Partnership
What is 'Articles of Partnership'
Articles of partnership is a contract that forms an agreement among business partners to pool labor and
capital, and share in profit, loss and liability. Such a document acts as a rule book for limited
partnerships by outlining all the conditions under which parties enter into a partnership. Articles of
partnership may also be referred to as a partnership agreement, especially outside of North America.
Next Up
PARTNERSHIP
LIMITED PARTNERSHIP - LP
PUBLICLY TRADED PARTNERSHIP (PTP)

Breaking Down 'Articles of Partnership'

Parties agree to articles of partnership voluntarily. An articles of partnership agreement is not a legally
required by any regulatory body, but is considered a best practice. Articles of partnership can be useful
in preventing and resolving disagreements among partners since it clarifies the terms of the relationship
and outlines how a partnership's assets are shared.

Articles of Partnership Components

Several items related to the formation of a partnership are covered in a typical articles of partnership.
They include:
The names of the parties in the partnership
The partnership's principal place of business
The purpose of the partnerships business
The terms of the partnership
When the partnership will begin and, if not infinite, when and how it will end
Each partner's capital contribution
Each partner's percentage of interest in the partnership
How the partnership's profits will be distributed (equally is the default, but there may be special
conditions)
How the partnership will be managed
How salaries (if any) will be distributed
How and under what conditions partnership rights can be transferred or sold

Articles of Partnership Key Areas

Of all the aspects of a partnership, how partner contributions are handled is among the most important.
For example, if one partner provided the initial idea for the partnership but no cash, and the remainder
of the partners contributed an equal sum, will each partner be considered equal regardless of cash
contribution?
Similarly, an articles of partnership agreement can remove the possibility of disputes over which partner
is responsible for certain duties and which partners have special privileges or are in charge of specific
tasks. It may also award a partner the authority to make decisions without the consent of other partners
and how to treat partners who want to work outside of the partnership or leave it outright.
Such an agreement will help a partnership avoid potential disputes related to profit or loss distributions
by setting rules governing it ahead of time. For example, if a partner contributed more time or money
than other partners they might expect a larger share of the profits.

COMPANY VALUES
When you consider your values in decision making, you can be sure to keep your sense of integrity and
what you know is right, and approach decisions with confidence and clarity. You’ll also know that what
you’re doing is best for your company, your staff and your customers.
Making value-based choices may not always be easy. However, making a choice that you know is right is
a lot less difficult in the long run. And if you empower your employees to make decisions, what better
way is there to have them make those decisions then basing those decisions on the core values of your
company.
How do you determine your core values? Don’t just copy another company’s set of values unless you
have examined them very closely and know that they will fit. Otherwise take about 30 to 60 minutes
and develop your own. After you have developed the list ask yourself the following questions:
Do these values make you feel good about yourself and your company?
Are you proud of your top three values?
Would you be comfortable and proud to publish these values?
Do these values represent the things you would support, even if your choice isn’t popular?
To help you get started, here is a list of company values from ZAPPOS:
“As we grow as a company, it has become more and more important to explicitly define the core values
from which we develop our culture, our brand, and our business strategies.
Finally, remember to regularly reaffirm your company’s core values at staff meetings or post them on
the wall in your office where they will serve as a reminder to your staff. Solid core values will reinforce
your business relationships and help employees and management conduct their business in a fair and
ethical manner.

Flexibility
97°Fahrenheit Co., will cope with any changes in our industry, adapting to what the circumstance needs.
We will bend without breaking.
Altruism
97°Fahrenheit Co., do not solely think of our gain, but also how our operations benefit our customer and
the nature. The best way to serve one’s self is by serving others.
Honor
97°Fahrenheit Co., adherence to integrity will never waver, for a success only matters if done ethically,
and with honesty.
Resilience
97°Fahrenheit Co., believe in the inevitability of failure, but we will find ways to rise up from any
adversity.
Equality
No difference in status of our customers and employees can increase or decrease the level at respect
the company give them.
Novaturience
97°Fahrenheit Co., will not settle with satisfying results, we are always ready to take risks for continuous
improvement.
Harmony
97°Fahrenheit Co., will keep unity and coherence in the conduct of our operations despite the
differences of every member.
Efficiency
97°Fahrenheit Co., will devote time in figuring out the wisest way of consummation and utilization of
time and resources.
Ingenuity
97°Fahrenheit Co., will practice intelligence and creativity in providing solutions both for conflicts & for
improvement.
Tenacity
The company envision to survive for a long period of time. During so, 97°Fahrenheit Co., will be
courageous and firm no matter what challenge they face.

Mission Statement
97°Fahrenheit Co., adhere on raising people's awareness on their environmental responsibility by
creating a community where they contribute in the conservation of nature simply by using the products
and establishing a work environment that practices and values the same principle.

Vision Statement
97°Fahrenheit Co., envision to be one of the most trusted and consumed skin care product, well known
for product quality, creativity and innovation, product quality, and for its environmental cause, serving
wider markets but still known as truly owned by Alfonso.

COMPANY POLICY
G.1. Waste and Waste Disposal Method
97°Fahrenheit Co., is envisioned to be recognized as the custodian of the green environment. Therefore
it supports the government in its mission to save the environment and focus on reducing the waste
generated and associated with the business by proper segregation of waste materials and
implementation of the 3R which is Reduce, Reuse, and Recycle. 97°Fahrenheit Co., avoid using of plastic
bags and straws with respect as well to the municipality ordinance that plastic bags will not be allowed.
97°Fahrenheit Co., supports the segregation of waste. There will be storage area for waste and proper
segregation for biodegradable, non-biodegradable and recyclable at the back of the building. The
Municipality of Alfonso has the schedule for collection of waste in each barangays every Monday and
Thursday so the biodegradable and non-biodegradable will be collected every week while the recyclable,
machines and equipment that are no longer working could be sold to junkshops.

QUALITY CONTROL
Quality is fundamental for a business to last in the long run. It is defined as a procedure or set of
procedures intended to ensure that a product or service under development meets specified
requirements. 97°Fahrenheit Co., aims to provide its customers the products that will satisfy and
meet the quality service that they expect and deserve.
A checklist is used to verify that a set of required step will be performed. It includes the
following:
Conduct satisfaction survey and provide feedback forms for the
customers.
Conduct satisfaction monthly equipment and machinery inspection.
Maintain quality ingredients and supplies
COMPANY PHILOSOPHY
POLICIES AND REGULATIONS
To ensure the staff members perform their job to keep the business running smoothly, the business
implements several policies to achieve overall objectives of the business and to meet health and safety
regulation inside and outside of the business. The policies are also written in the form of employee’s
handbooks so employees would be aware of the information about the business policies. The following
are the policies and regulations of the business:

H.1 Employment
Hiring process of 97°Fahrenheit starts with recruitment Initial Screening, Employment Test,
Interviewing, Referral Checking, Medical Examination and Training to make the new employee suitable
to the business objectives. Applicants who passed the qualifying examinations, series of interviews,
medical examinations and background investigations shall be considered for employment.
H.1.A. Employment Requirements
The following are required to be submitted by the applicants:
2 pieces 2x2 pictures
2 pieces 1x1 pictures
NSO authenticated Birth Certificate
NBI and Police Clearance
SSS number
TIN Number
Medical Examination
Barangay Clearance
Health Certificate
Working Permit

H.1.B. Classification of Employees

I. According to Rank
Managerial Employee – One who is vested with powers or prerogatives to lay down and execute
management policies and/or hire, transfer, suspend, lay off, recall, discharge, assign or discipline
employees.
Supervisory Employees – One, who, in the interest of the employer, effectively recommend such
managerial actions if the exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment.
Rank-and-file employee – all other employees not falling within any of the above definitions.
II. ACCORDING TO STATUS
Contractual or Seasonal – An employee is hired for a specified period of time under an agreement prior
to or at the time of employment.
Probationary – an employee is hired on a probationary basis for a period not to exceed six (6) months.
An employee is hired on a regular status upon satisfactory completion of the probationary period and
upon satisfaction of the criteria necessary for appointment as regular status.
The company reserves the right to amend the above classification or create sub - classifications as the
circumstances of the business may require.

H.1.C. Orientation
All newly hired employees must undergo orientation and familiarization of the company’s vision,
mission, policies, rules and regulations, duties and responsibilities, services and product familiarization

H.1.D. Confidential Information

In consideration for providing the employee with confidential information, the employee shall hold and
treat all confidential information in strict confidence and will not disclose in any manner whatsoever, in
whole or in part and will not use the confidential information without the company’s prior written
consent.
H.1.E. Personnel Records
It is the responsibility of the company to maintain complete and up-to-date personnel records for all
current employees. It should contain the following document and records:
Resume with 2x2 colored photo
Test results
Interview impressions
Mayor’s permit and health certificate (to be renewed every calendar year)
Transcript of records
TIN,SSS,PHIC,HDMF numbers
Employment contracts
Performance Evaluation forms
Certificate of trainings attended
Leave and violation records
Others

H.1.F. Attendance and Punctuality

Every employee shall ask written permission from the Store Manager or Department Head, before
taking the leave of absence.

a. Unscheduled Absences Employees must file an application for absence for at least one (1) week ahead
to Store Manager or Department Head b. If employee incurred sickness and cannot report for work, he
must call his supervisor or manager at least two (2) hours before his duty. If no calls were received on
the day of his absence or his call came in late, this will be considered as AWOL. Upon return to work, he
must file an absence slip with medical certificate attached for signature and approval of Store Manager
or Supervisor c. Emergency Leave If employees must go on emergency leave, he must file an absence
slip immediately. Attached to the absence slip must be documents justifying his reason for going on
emergency leave. An employee who is absent from work without written approval is subject to
penalties. An employee who is absent without official leave for five consecutive days is considered to
have abandoned his work and therefore subject to outright dismissal from the company. FEASIBILITY
STUDIES – KALYE OCHO Polytechnic University of the Philippines 88 Undertime is allowed on a case-to-
case basis and only if approved by the Store Manager. Undertime hours shall be automatically deducted
from the salary of the employees concerned.

H.8.2. Punctuality It is the policy of the company to discourage tardiness as this affects the morale of the
punctual employees as well as the operations of the business. Tardiness shall mean coming to work past
the required starting time. It also means failure to go back in the workplace immediately after break
periods. Heavy traffic, oversleeping , personal reasons, etc. do not constitute justification for late
arrivals. Only three (3) tardiness are allowed within one month. In excess of this, an employee is subject
to disciplinary action. Arrival in the workplace two hours after scheduled time will be sufficient ground
to consider an employee as absent for half day. Tardiness shall be chargeable directly against basic pay

Reliable, consistent attendance is a requirement and essential function of all staff positions. Employees
are expected to be punctual and dependable in order to meet the needs of their department. When
employees are absent or tardy, work and service are interrupted and an additional burden is placed on
colleagues. Attendance and reliability are important factors in evaluating individual performance and
continued employment.
If the absence can be anticipated, the employees needs to consult immediate supervisor and obtain
authorization to be absent for a specific period in advance. If the employee unexpectedly delayed or
unable to come to work for any reason, the employee must personally contact his/her appropriate
supervisor immediately allowing the supervisor to adjust the department’s work assignments before the
start of the workday. Employees are expected to utilize sick and vacation time benefits responsibly and,
whenever possible, to maintain leave time accruals for unexpected occurrences. Employees may not go
into negative sick and vacation time balances. In unusual and exceptional circumstances, the company
may grant requests for limited unpaid time and leave.
Other examples of attendance issues include, but are not limited to: frequent or persistent tardiness or
requests to leave early; fraudulent use of Personal Absence Time; and a disproportionate pattern of
“emergency” absence requests.
Employees who are unable to meet their employment obligations of regular and reasonable attendance
and punctuality are subject to disciplinary action, up to and including termination of employment.

G. Offenses
Kinds of Offenses:
VB = Verbal Warning
WR = Written Reprimand
S = Suspension
T = Termination

Kinds of Penalties
Employees are subject to penalties according to their violations made during their employment.
 Written Report of Warning (WR) It is the notice calling all the attention to the offense and warning the
offenses against repetition of such violation in the future.
 Suspension (3D/6D/9D) If a worker has commited offense for the second or third time, he is subject to
suspension. He will be detached from the organization with the designated period of time without
payment.
 Termination (TR) Termination will be given to employees who have committed a major offense. The
employee will be dishonourably separated from the organization

OFFENSES 1st 2nd 3rd 4th 5th

Tardiness VW WR S S S
Absence without leave VW WR S S S
Unauthorized use or VW WR S S S
misuse of company
property
 Willful destruction of S S S T
company properties.
Negligence or VW WR S S T
carelessness
Using inappropriate WR S S
language or obscene to
superiors.
Stealing properties of T
the company or of the
co-workers.
Failure to comply with VW WR S S T
company rules and
standards on security,
safety and sanitation.
Failure to comply with VW WR S S T
requirements of the
company with regards to
health, safety and
security
Ter Scandalous acts T
min Commission of crime or T
offense by the employee
atio against his employer or
n/E any immediate member
of his family.
mpl
oyee Dismissal
In case an employee intends to resign, he/she must give a one-month prior notice to the management
and must comply with all the clearance requirements; otherwise the employee shall forfeit whatever
remaining compensation due to him. FEASIBILITY STUDIES – KALYE OCHO Polytechnic University of the
Philippines 89

H.10.2. Termination In all cases involving a termination of an employee’s service from the company,
appropriate notice of termination shall be furnished to the employee subject to clearances of all
accountabilities. As a matter of policy, terminated employees are not qualified for reinstatement

Termination occurs when an employer or employee ends an employee’s employment with a particular
employer. Termination can be voluntary or involuntary depending on the circumstances.
In other circumstances of employment termination, the employment is terminated for a reason which is
given to the employee and stated in the termination letter. Termination for cause can occur in such
situations as:
Violation of the company code of conduct or ethics policy
Unacceptable Personal Conduct
Unsatisfactory Job Performance
Failure to follow company policy
Violence or threatened violence
Gross and habitual neglect of duty
Fraud
Commission of a crime or
Extreme insubordination
Resignation from work will only take effect fifteen days after submission of resignation letter and after
the resigning employee complies with the company clearance of accountabilities.

H.2. Operations Rules

Discipline is the primary concern of the organization for the attainment of the productivity and
efficiency that will lead to the organizational and personal growth. All of the employees as well as the
general partners are expected to behave ethically at all times.

Employees are required to follow dress code provided by 97°Fahrenheit Co.,°Fahrenheit as a standard.
There are designated uniforms for each position. (see Appendix) Shoes that are open back clogs or
mules are not allowed. Hair should always be secured back at all times. Business transactions that are
not related to the store are strictly prohibited within company premises. Smart phones or gadgets are
strictly prohibited while on duty. Any complaints of the customer received must be reported to the
manager. Smoking is prohibited while on duty.

H.1.3. Code of Conduct

97°Fahrenheit Co., believes that acting ethically and responsibly can affect the success of the business;
therefore employee behavior is a factor. Business success does not solely depend on the profit but
rather on the rapport that the employees build with the customers. Gaining credibility by adhering to
the commitments, displaying honesty, discipline and integrity and focusing on reaching company goals
would give the business loyal and happy customers.

Background of Key Personnel

Manpower is known to be the blood-line of the business aside from its financial aspects and is
considered to be the most important resource of a business. Without the employees, business goals and
objectives would not be possible to achieve. 97°Fahrenheit would need to have a managing partner,
finance manager, operations manager, marketing manager, mixer, packaging, driver, cutter, and
maintenance personnel to be able to complete the company’s labor force (see Table 5.1).
Table 5.1: Head Count of Personnel

Position Head Count

Managing Partner 1

Finance Manager 1

Operations Manager 1

Marketing Manager 1

Mixer 1

Packaging 1

Driver 1
 Cutter 1

Maintenance Personnel 1

Organizational Chart

Our business chose the functional type of organization. This is one of the most commonly used type of
organizational structure which all activities in the firm are group together according to certain functions
like production, marketing, service and administrative. This is the best structure that will fit to our over-
all operation. This is quite complex but effective and efficient for every partners and employees of the
organization since the work is divided into specialized functions. There is also a direct flow of authority
but may associate or collaborate to other managers for the betterment of the business and there is also
a mutual relationship between them. The specialists must be consulted before any decision is taken no
matter relating to his specialized area. The managers can totally focus on his tasks and can perform
managerial activities well. This type of structure can be applicable for a long time as long as it fits in the
business since it offers a greater scope for expansion as compare to line type of organization. It does not
face the problem of limited capabilities of a few line of managers facilitates better control and
supervision in the business firm. Despite of the disadvantages of this type which are the confusion and
conflict in roles and responsibilities, it still our choice for it can supervise a large number of subordinates
while in line type, it can only supervise a limited number of subordinates and this is more efficient in
accomplishing task and there is teamwork and cooperation of all members of the organization. We used
it as our consideration in choosing our organizational structure is the size of our business.
Figure 5.1: 97°Fahrenheit Co.’s Organizational Chart
Key Personnel Functions
It is very vital in all business organization to know their manpower requirements to operate
systematically and effectively at all times. It will help also to determine the capacity or capabilities of the
employees to fit in the flow of business as well as to have a clear duties and responsibilities. Having
standard qualifications in hiring and selecting, the employee will establish efficient business operations.

Managing Partner
The managing partner has the accountability for the operation of the business. He is expected to
delegate his responsibilities to various operational departments within the organization.
Managing Partner should have the following skills:
Visionary Leadership
Ability to motivate a workforce
Effective management and delegation
Communication and negotiation
Presentation skills
Understanding of a multi-faceted business operation
Strong financial acumen
Planning and forecasting

Finance manager
Finance Manager is responsible for supporting the general manager and reporting for day to day sales.
Supervises accounting staff and performs a wide range of complex professional accounting duties in the
analysis, preparation and maintenance of financial records and reports;
Makes complex and difficult accounting analyses and reports;
Responsible for the computation of salaries.
Keeps the reports of the transaction for the day.

Operations Manager
Operation officer is responsible for supervising the operational functions of the store and reports to the
general manager.
Supervise day-to-day task assignments and performance.
Ensure customers satisfied through excellent customer service. Respond to the customer complaints or
inquiries. Receive feedback from the customers.
Responsible in the management activities like hiring, recruiting, training, coaching and the employee’s
performance.
Establish planning and execution of safety, security, quality and store operations policies, procedures
and practices.
Plan and prepare work schedules, coordinate daily assignments to meet the needs of the business.

Marketing Manager
Marketing manager is responsible for developing, implementing and executing strategic marketing plans
for an entire organization in order to attract potential customers and retain existing ones.
Managing and coordinating marketing and creative staff
Leading market research efforts to uncover the viability of current and existing products/ services
Responsible for working with the executives to determine budgets and targets
In charged with developing pricing strategies for products and services.

Mixer
Work on mixing area and provide leadership or support tot he production team. Responsible for set up,
to organize, increase speed, and other duties in order to produce a consistent product in a timely
manner that meets all standards set forth by the company.
Combine all raw materials in proper sequence and sign off that each ingredient has been added and
processed for the correct amount of time as outlined in the mixing system.
Rotate mixed ingredients back and forth to the being served.
Complete and deliver all batch forms to the production or operation manager
Keep and supervise work area, tools and supplies, organized and sanitary throughout the shift.

Packaging
Packager is responsible for cleaning packaging materials, loading items into containers and weighing and
labeling items appropriately.
Perform final checks for defective items
Ensure all working items make it to the loading area or inventory
Keep detailed records of materials and shipments
Cutter
Cutter use hand tools or hand-held power tools to cut and trim a variety of manufactured items
Cut, shape, and trim materials
Discard items with defects – unacceptable shapes or finishes
Read work orders to determine dimensions, cutting locations and quantities to cut
Separate materials or product according to size, weight, type, condition, or color.

Driver
The company driver is responsible for conveying materials, equipment, and staff of the organization to
the areas where they are required
Transport products, materials and staff securely to areas where they are needed
Guarantee that products and staff are protected and secured
Ensure timely conveyance of staff and materials to and from places as instructed by the manager.
Carry out routine checks on vehicles and ensure they are sound

Maintenance Personnel
Maintenance personnel performs general cleaning and minor maintenance duties in maintaining office
building, adjacent walk and grounds, and equipment in clean, orderly and functional condition.
Performs work according to standard procedure and by building’s operational schedule
Cleans offices, rooms, restrooms, hallways, stairways and windows.
Follows all applicable safety rules and procedures.
Assists in shipping and receiving of company supplies and materials.

Qualifications
L.1. Employment Process and Requirements
Employment Process
 Applicants will be passing an application form or resume with 2x2 colored photo to the administrative
manager.
 The administrative will analyze the contents of the resume and will call the applicant for the initial
examination if interpreted to be satisfactory.
 The manager will provide an initial exam which contains basic and abstract questions.
 If the applicant passed the initial exam, he will be provided a reviewer containing the menu of Kalye
ocho as well as their corresponding descriptions.
 The applicant will be asked to return after three days for three final exam based on the reviewer
provided.
 If the applicant passed the final exam, he will be immediately interviewed for final screening.
 After the final interview, if passed, will be given the list of requirements to be complied for a specific
period of time.
 After compliance of all the requirements, the applicant will be scheduled for orientation together with
the other applicants.
 After the applicants are oriented, they will be trained for one week regarding the operations of the
business applying the basic principles of the company.
Hiring process of 97°Fahrenheit Co., starts with recruitment Initial Screening, Employment Test,
Interviewing, Referral Checking, Medical Examination and Training to make the new employee suitable
to the business objectives. Applicants who passed the qualifying examinations, series of interviews,
medical examinations and background investigations shall be considered for employment. The following
are required to be submitted by the applicants: 2 pieces 2x2 pictures, 2 pieces 1x1 pictures, NSO
authenticated Birth Certificate, NBI and Police Clearance, SSS number, TIN Number, Medical
Examination, Barangay Clearance, Health Certificate and Working Permit. All newly hired employees
must undergo orientation and familiarization of the company’s vision, mission, policies, rules and
regulations, duties and responsibilities, services and product familiarization.

Training and Development

The 97°Fahrenheit employees will undergo cost-effective training designed to increase individual and
organizational productivity and enrichment.

Working Hours
Business hours will start from 8:00 am to 5:00 pm from Monday to Sunday to accommodate quality time
and relaxing hours of the perspective customers.

Employee Salaries
Salaries are paid once a month will be paid on the 25th day of the month. Cut-off for payroll computation
is every 23rd of the month. If payday falls on holidays, salaries shall be paid the day before the standard
pay date.
Minimum wage of Region IV-A as of July 05, 2018 (Philippine Statistics Authority) ranges from
Php. 317.00 – Php.400.00, which the business is implementing in their salary design.
Table 5.2: Salaries and Wages of Employees and Personnel

13th GROSS
ANNUAL(ANNUAL
Daily Monthly Month Monthly SALARY + 13TH
Annual Annual Net
Employees Rate Salary Pay Deductions MONTH PAY) Deductions Salary
FINANCE MANAGER 400.00 10,000.00 10,000.00 961.70 130,000.00 11,540.40 118,459.60
OPERATIONS
MANAGER 400.00 10,000.00 10,000.00 961.70 130,000.00 11,540.40 118,459.60
STORE MANAGER 325.00 8,125.00 8,125.00 789.30 105,625.00 9,471.60 96,153.40
MIXER 320.00 8,000.00 8,000.00 789.30 104,000.00 9,471.60 94,528.40
CUTTER 320.00 8,000.00 8,000.00 789.30 104,000.00 9,471.60 94,528.40
PACKAGING 320.00 8,000.00 8,000.00 789.30 104,000.00 9,471.60 94,528.40
MAINTENANCE 303.00 7,575.00 7,575.00 715.70 98,475.00 8,588.40 89,886.60
DRIVER 303.00 7,575.00 7,575.00 715.70 98,475.00 8,588.40 89,886.60

Overtime Pay
Employees are strictly limited to work at their designated work schedules only. Every effort should be
made to avoid unnecessary overtime work and to keep work within reasonable limits.

Sanitary Maintenance
All employees must observe must observe the highest standard of hygiene and sanitation.
Employees must be well-groomed and continue with their work, wearing clean and proper attire. For
this purpose, the term “well-groomed” shall mean proper haircut, cut fingernails, use deodorant, and
clean and regularly washed hands. For this purpose, the term “clean and proper attire” shall likewise
include newly-washed and properly-ironed attire, no excessive dirt on clothes and shoes, and proper
and complete company uniform worn properly.

Project Time Table

A project timetable is a plan that reflects all the activities of the business that is scheduled to
occur in a given time.
Project Time Table
Identification Assessment for the business plan and gathering of data, information and
and Collection ideas for assessing a strategic viability for the “97°Fahrenheit Co.”
of Data
Planning Formulation of an accurate plan and schedule.
Formulating the name of the business.
Determine type of the business.
Identification of goals and objectives.
Manpower requirements and identification of duties and responsibilities.
Budgeting and finalization of business plan.
Execution Establishment of the buildings and site.
Recruitment and selection of/ employees.
Store opening and store operations.

Gantt Chart
2018 2019
 Activities Aug Sep Oct Nov Dec Jan Feb

Conducting Feasibility Study and

Survey

Assessment for the business plan

Formulation of an accurate plan and

schedule.

Formulating the name of the business.

Determine type and Identification of

goals and objectives of the business.

Manpower requirements and

identification of duties and
responsibilities.

Budgeting and finalization of

business plan

Processing of Legal Requirements.

Establishment of the buildings and

site.

Recruitment and Training of

Employees.

Store Opening and Store Operations.

Project Schedule
Pre-Operating Schedule Time Allotted
1. Conduct Feasibility Study Aug 1 – 31 2018 During this period, the proponents will conduct a study
about the proposed product and will be able to investigate whether the business is viable or not. In
order to examine the product’s viability, the proponents will gather data with the use of various
instruments and techniques such as questionnaires, interviews and information from legit websites,
books, journals and other sources of essential data with regards to the study.

2. Putting up Equity Sep– October 15 2017 Capitalization is crucial in establishing a business as the
business will not be materialized without it. Finances of the proposed business must be planned wisely
during the period. The proponents will contribute equally and ample time is given in order to complete
the amount needed for the operation of the business. The proponents agreed to contribute ₱14,285.71
at the end of the September.

3. Registration oct 16 - November 15, 2017 – December 31, 2017 All the legal procedures and
requirements for the start of the business must be accomplished during this period. Securing business
permits from Municipal or City Government, Security and Exchange Commission (SEC), Bureau of
Internal Revenue (BIR), Department of Trade and Industry (DTI), Department of Labor and Employment
(DOLE), Social Security System (SSS) and Philippine Health Insurance Corporation (PhilHealth) must be
completed.

4. Plant Rental and Renovation Nov – Dec 31, 2018 During this period, the proponents are going to
locate the proposed business inside Centro Escolar University 9 Mendiola St, San Miguel, Manila, 1005
Metro Manila. The existing space inside the campus is widely available for storing, distributing and
processing inventory and supplies mainly related for the production of output. The proponents assumed
to spend in leasing the facility for a total cost of ₱3000 per month. Refurbishing the leased space will
come up with putting up of tarpaulins and posters.

5. Canvassing and Acquiring of Equipment nov – dec For this duration, the proponents will start to
canvass and acquire equipment that is needed for the manufacturing and distributing of the product.

6. Canvassing and Purchasing of Raw Materials nov –dec The proponents will examine properly the
amounts of raw materials in order to acquire the ingredients at a lower cost. Searching for suppliers is
also taken into consideration in order to avoid negative fluctuations of the prices of raw materials
needed.

7. Hiring and Training of Employees Dec, 2018 Selection of the qualified applicants will be done in this
period. After being qualified, orientations will be given to employees to have knowledgeregarding the
business. Preparations such as the procedures and control in the manufacturing of the product, handling
of cash and the right approach to customers will be taught to employees in order to build up their
confidence and increase productivity that will help them sustain motivation in their current state, as
well as in the future. There are also factors to consider that significantly influences the employees on
how they will maintain a positive impression in the working environment by recognizing their hard
works and advocating balance in life and work. Safety procedures will be extensively employed to assist
the employees with working safely.

8. Promotional Campaign Jan Since the setting up of the business is nearly approaching, this is the best
time to endorse the product. Having enough time to notify people about the product by giving leaflets
or brochures, posting through social media platforms and blog sites, and informing the public verbally
will make the business known. The goal of the proponents is to make the product well-known in order
for people to recognize and buy the product.

9. Start of Normal Operation Jan -Feb Onwards After accomplishing all the necessary requirements, the
business will start to operate. Continuous promoting of product is still needed and meeting the
demands of the customers is to be obtained for the customers’ satisfaction.
The mayor’s permit allow the business to operate in the location.
Requirements:
 SEC Registration Certificate
 Community tax Certificates
 Locational Clearance
 Certificate of occupancy
 Pictures of the site

Barangay Clearance
This clearance certifies that the business complies with the requirements of the local barangay where
the business will operate.
Requirements:
 Community tax certificate
 Barangay clearance fee

Bureau of Internal Revenue (BIR) Permit

This is the most important requirement of all. It will give authority to the business to print its official
receipts and other invoices, provide the business its tax identification number (TIN), register the books
the business will use to record the transactions and necessary to acquire other permits and licenses.
Requirements:
 BIR form 1903
 SEC Certificate of registration
 Mayor’s permit
 BIR form 0605- Registration form
 BIR form 2000- Documentary Stamp Tax

Bureau of Food and Drugs (BFAD) For the business that belongs to the food industry to
operate, it must first have a license to operate from BFAD.

Sanitary Permit
After an actual inspection on the establishment, a sanitary permit id thereby issued. Any person or
entity having a food establishment for public patronage shall secure a permit from local health office
and it shall be posted in a conspicuous place of the establishment.
Requirements:
 Chest X-ray
 1x1 I.D pictures
 Inspection of the said establishment
 Sanitary permit fee
 Medical certificate issued by the City Health Officer

Securities and Exchange Commission (SEC) Registration

The Securities and Exchange Commission (SEC) is the agency of the government of the Philippines
responsible for regulating securities industry 99 in the Philippines. In addition to its regulatory functions,
the SEC also maintains the country’s company register.

Requirements:
 Name verification slip
 Articles of Partnership


Contract of Lease
The contract of lease outlines the terms under which one party agrees to rent property owned by
another party. It guarantees the lessee, the tenant, the use of an asset and guarantees the lessor, the
property owner of the landlord, regular payments from the lessee for a specified number of months or
years. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract.

Permits and Licenses

Z.1. Municipality of Alfonso
Business Permit
Barangay Business Clearance
Lease Contract
Locational Clearance
Picture of Establishment
Fire Clearance
Sanitary Permit
Z.2. BIR
2316 Form
1702 Form
1903 Form
1907 Form
Z.3. SSS
R-5
R-1
R-1A
Z.4. DTI
Application for Partnership
Business Name Registration Form
Z.5. SEC
Articles of Partnership
Registration Data Sheet
Z.6. FDA
Petition to open a cosmetic? establishment
RA 3720
Checklist for cosmetic? Establishment