Analysis of an Enterprise

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& More
Prepared by:
Jessa Kristela U. Gimena
Frances Uma Tirol
Meryll Louise Arana

Submitted to:
Francis Paul Butal
Instructor
I. INTRODUCTION

Jerac’s Pizza and More, one of the leading pizza parlor in the market of
Tagbilaran started its operations and opened its doors to the public last
 December 12, 2011. As one of the pioneering brand of original Boholano
pizza, it boasts the biggest pizza (22-inches) in the city/province. Considered
purely Boholano as its roots are Boholanos by blood.
Originally, there are three co-owners of the said enterprise. They are close
friends “barkada” in their early years. One day, they decided to put up a
business, a pizza parlor. Registered by the law as a sole enterprise under the
name of Mr. Jerome Salutan from Bonbon, Clarin and a college instructor in
Hotel and Restaurant Management in University of Bohol. Although Jerac’s is
owned by three persons, they decided to register the business as a sole
proprietorship. This instance is done since registering an enterprise under
partnership is more complex and this is agreed by the co-owners of Jeracs
who refused to be mentioned.
Upon choosing the right name for the pizza parlor, Mr. Salutan and his
partners wanted a catchy, friendly and more likely Boholano-sound name for
the business. They have come up first with Amigo’s Pizza since it is a
Boholano term for “friend” but little did they know that this name has already
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been registered and some other businesses already owned that name so they
have come up with Jerac’s.

Jerac’s Pizza and More is the Home of the Biggest Pizza in Tagbilaran
City as aforementioned where the dough is freshly baked daily and where the
pizza eating challenge happens. What is the challenge all about? Simply go
to the store and consume 1 pizza with a specified size of any flavor within 40
minutes provided with a drink of the challenger’s choice. If the challenger
consumes the pizza in the given time, he/she receives a cash prize of
3,500php and a daily supply of one 7” pizza of selected flavor and
Recognition on Jerac’s Wall of Fame. However, if the challenger fails to finish
the challenge, he/she must pay the ordered items like drinks and the pizza
and take home the left over.
 Before, it is just only Jerac’s Pizza until Mr. Jerome, also the manager of
the business, extended its products and services to its customers by adding
the menu with short orders, beers, desserts and other new delish pizza flavor
due to the demand of the public so they changed it to “Jerac’s Pizza and
MORE”. They also deliver pizzas within the vicinity of the city. As of now, the
business is continuing and has been receiving positive response from the
market. Although the city is struck by the influx of different types of business
especially pizzerias, Jerac’s continues to create something new to its market.
Jerac’s changed all the names of its pizzas to create more impact to the
customers and slightly renovated its location.

There have been a lot of potential franchisees who had wished to

franchise Jerac’s but Mr. Salutan and his partners tactfully refused because
they might not be able to train them because of their hectic time as well aside
from being businessmen. There have been several pizza parlors which did
not succeed in other parts of Bohol when they expanded because of the fact
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that pizza is not the staple food for Bol-anons. So Jerac’s did not continue to
expand its business in other towns of the province due to the evident situation
that other pizza parlors had. Jerac’s also tried to relocate their business but
did not proceed because of the customer’s demand.

Foreigns say that Jerac’s is a friendly pizza store because many tourists
coming from the port looks for a dining area where they can have snacks,
meals or drinks from their respective trips. The parlor is open for any foreign
tourists who wish to take a short rest or even charge their gadgets, the store
also allows backpackers even locals to leave their baggage if they want to.
Indeed, Jerac’s Pizza and More is a friendly store.

Jerac’s has a total of six employees with two assistants assigned in the
front desk and cashier and four assigned in the kitchen to prepare the foods.
 According to the manager when asked about whether they enforce
employee empowerment, “Yes, most of my staffs here are still studying so I
understand them, education is important and I don’t want them to stop so I let
my employees choose their own work schedule as long as no one leaves the
desk if the other one is not around so as the kitchen.” the manager said.

Jerac’s is located at 1st Floor Gallares Court, Graham Avenue corner

Maria Clara St., Tagbilaran City, Bohol.

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II. APPLICATION OF TQM IN THE BUSINESS

 Jerac’s pizza includes TQM as a key feature of their way of working. The
first and major TQM principle is to satisfy the customer--the person who pays
for the product or service. Customers want to get their money's worth from a
product or service they purchase. It focuses on continuously satisfying
customers through meeting their requirements and expectations include
product and service, tangible and intangible. Jerac’s pizza involves making
customer satisfaction top priority. Given this goal, Jerac’s Pizza is focused on
creating their product (pizza and etc) satisfactory and high quality. To achieve
this, Jerac’s Pizza has to identify or understand their customers’ wants and
keep their expectations at the forefront of their strategy. They see to it that
each worker must not only seek to satisfy the immediate internal customer,
but he or she must look up the chain to try to satisfy the ultimate customer.
And instead of focusing solely on profits, the manager identifies their core
customer base in order to build and maintain market share through
continuous improvement of products and services. They focus on quality and
price to gain and hold customers, striving to view the business through their
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customers’ eyes.

The establishment seeks to satisfy the customer by providing them value

for what they buy and the quality they expect to get more repeat business,
referral business, and reduced complaints and service expenses. Jerac’s
pizza does not only provide quality products, but they also give extra service
to make their customers feel important and valued. Integrity is the business’
forefront comprehensive assumption which means they give to the customers
what they promise.
 The second lesson in TQM applied by Jerac’s is the employee
empowerment. Employee empowerment has been defined in many ways but
generally means the process of allowing employees to have input and control
over their work, and the ability to openly share suggestions and ideas about
their work and the organization as a whole. Empowered employees are
committed, loyal and conscientious. They are eager to share ideas and can
serve as strong ambassadors for their organizations. Empowering employees
leads to organizational encouragement of entrepreneurial traits and prompts
employees to make decisions, take action, and foster their belief that they can
take control of their own destinies. This belief leads to self-motivation and a
sense of independence that is translated into greater loyalty and extra effort
for the organization. Empowered employees come to believe that they control
their own success through their efforts and hard work, which in turn benefits
the success of the entire enterprise.

The business believes that a happy employee, produces a happy

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customer and generates a happy business. QUALITY MANAGEMENT
Jerac’s Pizza and More
allows their employees to choose their own work schedule just like the
Japanese management style. Most of the employees in Jerac’s have units in
college and the manager believes that everyone deserves to be educated
while at the same time working. Education is important that’s why the
manager doesn’t want his employees to just focus only to their job but also
their education. The business also includes its staffs in every decision they
make and ask suggestions as to whether they have to pursue their plans or
strategy. In this way, the business could acquire such benefits if employee
empowerment is executed properly like productivity improvement which is
evident in the business right now, reduce costs, better customer service
because if an employee is empowered, they render exceptional service and
have the power to make decisions without their supervisor and they are
entitled to go off-script if it is the right thing to do. Enterprises that give
employees the freedom to make decisions on the spur of the moment, that
may even sometimes fly in the face of established rules and protocol, often
 find that service to internal and external customers is improved. In addition,
empowered employees take pride and ownership in their jobs when they
know that they can exercise independent judgment when necessary.

Lastly, is improvement of productivity and quality which requires a

variety of approaches, tools, techniques, concepts and ideas is being applied
since the business believes that productivity and quality are the competitive
indicators of a business in order for it to keep going. Quality product or
service is a product or service that has features, characteristics, and
attributes that ensure that the product or service has the ability to satisfy a
given need. And to produce a quality product or service requires a quality
process. This is another strategy that Jerac’s is practicing in order to achieve
their business goals in relation to customer satisfaction and employee
empowerment.

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 III. EVALUATION

The basic principles for the Total Quality Management (TQM)

philosophy of doing business are to satisfy the customer, satisfy the supplier,
and continuously improve the business processes.

Questions you may have include:

 How do you satisfy the customer?

 Why should you satisfy the supplier?
 What is continuous improvement?

The researchers believe that Jerac’s has applied the principles of TQM
because the business received positive feedbacks from their customers stating
that they are satisfied with the products and services rendered and earned
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repeat customers since the day of its operation. Not only have the locals
uttered their quick positive response to the business but also the foreign
tourists who happen to pass by the famous pizzeria in the city. Online review
and blogs show that Jerac’s really had left a mark in the heart of its customers.

On the other hand, Jerac’s have been giving satisfactory level to its
suppliers. The business already built strong connection from its packaging
supplier in Manila. From 1000 boxes of pizza cover they extended to 2000
orders if necessary. This goes to show that the business is loyal to its supplier
and the supplier is rendering good service to its client. The reason to do this is
to get more productivity out of the supplier, as well as to keep the good
workers.

Lastly, there is a continuous improvement. You can never be satisfied with

the method used, because there can always be improvements. Certainly, the
competition is improving, so it is very necessary to strive to keep ahead of the
 game. Apparently, Jerac’s continues to grow as an enterprise as they offer
something new to the customers, not just new but improved quality of their
products and services. Through this, they keep their customers from coming
back to the store.

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 IV. QUESTIONNAIRE
University of Bohol
College of Hospitality Management, Tourism and Nutrition
Analysis of an Enterprise- Questionnaire

Name of the enterprise: ____________________________________

Year of establishment: ____________

1. How do you train your employee?

2. Are you strict about your employees work hours?

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3. How do you encourage employee empowerment in your business?

4. How do you cope up with competition?

5. Are you close with your employees?

6. How do you maintain consistency in your product?

7. How do you cope up with your everyday expenses?

 8. What are your marketing strategies?

9. How do you get to make your customers keep coming back?

10. How do you deal with customers complain?

V. LETTER

University of Bohol
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College of Hospitality Management, QUALITY
Tourism, MANAGEMENT
& Nutrition
City of Tagbilaran

March 25, 2015

To whom it may concern:

Greetings!

Please consider this as a letter of intent for the undersigned tourism

students of University of Bohol to request for permission to conduct a research in
your company/business entitled: Analysis of an Enterprise. The research is
carried out in partial fulfillment of academic requirements in the subject TQM with
the descriptive title of Total Quality Management. The study’s main purpose is to
analyze the management style of the business and to know if the business is
applying principles in TQM.

Your approval to this humble request will set the course of our study.

Thank you and God bless.

 Very truly yours,

Jessa Kristela U. Gimena

Frances Uma Tirol
Meryll Louise Araña

Noted by:

Francis Paul Butal

Instructor

VI. DOCUMENTATION

Interview
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The Newest Pan Pizza

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