CORE COMPETENCIES AND MANAGEMENT GROWTH OF BUTTER AND

COFFEE CAFE IN LUCENA CITY

Chollyn C. Jagmoc

Shay E. Rodillas

Southern Luzon State University

College of Business Administration

January, 2019
 Chapter I

INTRODUCTION

Numerous cafes have been trending in the Philippines nowadays. Each cafe has

its own style of presenting products and services to the customers. One reason is that food

in the cafe brings the consumers delightful experience and brings satisfaction. Such

business must focus on good ambience of cafe, quality of food and services, and good

relationship with the customers. Just like any other business, there is competition.

According to Euromonitor's International (2018), the latest market trends should

be discovered and sources of future market growth for the cafe industry in Philippines

should be uncovered. The strengths of cafes and bars include keeping appearance,

ambiance, and the range of offerings and products being offered, as most stores shortly

adapt to altering client tastes and practices. The food service enterprise recognizes

millennial as a rising purchaser crew and cafes and bars have been addressing their

wishes for some time.

Cafes are often what people refer to as a third place. It is a place to be when not

home or at work. The cafe businesses have perform well. Each of them makes different

competencies explored by researches in terms of leadership effectiveness, workforce

capability, organizational structure, operational performance, customer satisfaction, and

innovation. Learning those topics can be simply obtained. Business improvement should
be proposed as an output. In any case, knowing the core competencies is not easy to

acquire because they are within the mind of the business.

Background of the Study.

Butter and Coffee Cafe with the tagline “all day breakfast” was founded on

October 15,2016 by sole proprietor. It is located at Enverga Corner Osmeña St. Barangay

3, Lucena City. The cafe was established two years ago. This business is a head turner

because of its classy design and relaxing atmosphere. Good interior make the cafe looks

expensive and it is all day breakfast inspired an oasis of quality when it comes to food.

Staffs are friendly and accommodating. They do great coffee and desserts. Chefs and

crews are coming from the best schools in the country the outcome of their services are

worth to trying. They serve truly delicious clean menus.

The researchers chose the Butter and Coffee Cafe because one of the researchers

has a friend who works as a chef in the cafe. Also the researchers think it was an ideal

subject for their research, which aimed to get into details regarding the core competencies

and sales performance of the cafe for the past two years of operation. With this, the

researchers tried knowing how to achieve core competencies and increase the sales

performance by minimizing or totally avoiding problems that hinder these processes.

Objectives of the study

 The main objective of the study was to know the core competencies and

management growth of Butter and Coffee Cafe in Lucena City. Specifically, it aimed to

achieve the following:

1. To determine the business profile of Butter and Coffee Cafe in terms of:

1.1 Historical Background

1.2 Organizational Structure

1.3 Technical Structure

2 To determine the profile of the respondents in Butter and Coffee Cafe in terms of:

2.1 Employees Demography

2.2 Customer Demography

3. To determine the core competencies of Butter and Coffee Cafe as perceived by the

employees in terms of:

3.1 Leadership Effectiveness

3.2 Workforce Capability

3.3 Organizational Structure

4. To determine the core competencies of Butter and Coffee Cafe as perceived by the

customers in terms of:

 4.1 Operational Performance

4.2 Customer Satisfaction

4.3 Innovation

5. To determine the management growth of Butter and Coffee Cafe in terms of:

5.1 Sales Performance

5.2 Varieties of Product Offerings

5.3 Number of Customers

6. To propose enhancement on the core competencies and management growth of Butter

and Coffee Café.

Significance of the Study

The documented study of core competencies and management growth of Butter

and Coffee Cafe in Lucena City is beneficial to the following:

To the researchers, this study has been essential because of the knowledge they

obtained. They were able to provide information to the owner and management to help

them in evaluate aspects of their business to be improved.

 To Butter and Coffee Cafe owners, the study will serve as a source of

information about the cafe’s leadership effectiveness, workforce capability,

organizational structure, operational performance, customer satisfaction, sales

performance, varieties of product offerings and number of customers as perceived by the

employees and the customers. This may determine areas of improvement to attain

competitive advantage.

To Butter and Coffee Cafe employees, this will further encourage them improve

the competence of the cafe through their performance.

To future entrepreneurs, the study will also serve as a guide for them who will be

venture in the same kind of business.

To future researchers, the result of the study can help them conduct parallel and

further studies.

Scope and Limitation

The study focused on the core competencies and management growth of Butter

and Coffee Cafe. It was determined using the business profile of the company which

helped the researchers become familiar to the business and to the customers. The study
also proposed an enhancement on the core competencies and management growth of

Butter and Coffee Cafe.

Specifically, the researchers used a structured questionnaire that focused on

classifying the profile of the respondents in Butter and Coffee Cafe, including the

perceived leadership effectiveness, workforce capability, organizational structure,

operational performance, customer satisfaction, sales performance, varieties of product

offerings and number of customers.

Definition of Terms

The following terms are operationally and conceptually defined to provide

readers better understanding of the study.

Cafe is a coffee house that serves foods and beverages.

Competence is an activity that Butter and Coffee Cafe perform well.

Competitive advantage refers to the method of company focused on goal setting and

decision making that leads them to success.

Competitor is the one that competes and offers the same products as Butter and Coffee

Cafe.
Consumer buying behavior refers to the ultimate consumers’ characteristics and the

factors that influence them in decision making process.

Core competencies are defined as set of skills, talents and activities in which Butter and

Coffee Cafe is particularly strong.

Customer is a person who buys and the recipient of the product rational attainment,

occupation.

Customer satisfaction indicates the fulfillment that customers derive from doing

business with a firm. In other words, it is how happy the customers are with their

transaction and overall experience in the company.

Innovate means to have new ideas how something can be done.

Innovation refers to the overall process whereby an invention is transformed into a

profitable product that can be sold profitably.

Leadership effectiveness is required at every level of business and the leaders is the one

who possesses outstanding skills.

Operational performance is Butter and Coffee Cafe’s performance measured against

prescribed standard of effectiveness, efficiency, and environmental responsibility

such as compliance with productivity, regulations, etc.

Operational Performance Management (OPM) is the alignment of all business units

within an organization to ensure that they are working together to achieve core
 business goals.

Organizational structures is a formal system of task and authority relationships that

controls how people cooperate and use resources to achieve goals.

Sales performance is the practice of monitoring and guiding personnel to improve the

ability to sell products or services of Butter and Coffee Cafe.

Technical structure refers to company’s location itself and the buildings including

layouts.

Variety of product refers to the assortment of products being offered to satisfy various

customer desires.

Workforce capability is the ability to accomplish a company’s work processes through

the knowledge, skills, abilities, and competencies of its people.

 CHAPTER II

REVIEW OF LITERATURE

Cafe

Cafe businesses especially sell refreshment drinks, snacks, and light meals, with

espresso being their flagship product. These businesses need to employ modern

strategies, such as diversification of menu offerings, to expand income and continue to be

competitive. The industry’s increase prospects are dictated by issues such as availability

of disposable income in households and changes in customers’ preferences for foods and

drinks (Ingait, 2017).

According to Euromonitor (2018), similar to bars/pubs, cafes are additionally

predominantly independent brands. However, chained cafes continued to be sustained by

bubble tea brands in 2017. What was once thought to be a fad sooner or later grew to

become a trend, as bubble tea continues to be an attraction within the Philippines and

such premises have quickly advanced from easy bubble tea retailers into full cafes.

Because the strengths of cafes and bars include keeping appearance, ambiance,

and the variety of services and products being offered, these retailers rapidly adapt

to altering client tastes and practices. The food service industry recognizes millennials as

a rising purchaser group and cafes and bars have been addressing their needs for some

time.
 To similarly serve the wants of millennials, cafés and bars are addressing their

increasing number of on-the-go lifestyles. Around eight Starbucks

branches provided drive-through amenities at the end of the assessment period.

With growing discretionary spending, customers have come to be greater discerning and

adventurous when it comes to meals choices. This is a possibility that cafés and bars

will proceed to take benefit of over the forecast period. Similar to bars/pubs, cafés

are also predominantly unbiased brands; however chained cafés endured to be

sustained by way of bubble tea manufacturers in 2017. What was once thought to be a

fad finally became a trend, as bubble tea continues to enchantment inside the Philippines

and such premises have quickly advanced from simple bubble tea shops into full cafés.

According to Wikipedia.com (2010), cafe is restaurant that does not offer the

service. Customers order their food from a counter and serve themselves. A cafe menu

traditionally offers things such as coffee, espresso, pastries, and sandwiches. Cafes

originated in Europe and strongly associated with France. They are known for their

casual, unhurried atmosphere. Outdoor setting is another trademark of cafe.

Short for public house, pubs date back hundred years to Europe, especially Great

Britain. Pubs have a timeless appeal for their laid back atmosphere. Brewpubs offer beer

made in house, as well selection of other beers and ales. Pubs can offer full menus, as

well as appetizers. Many casual style restaurants have a nh separate pub side to their

establishment.
Core Competencies

Prahalad and Hamel (2012) defined core competence as the collective learning in

the organization, especially the capacity to coordinate diverse manufacturing

skills and integrate streams of technologies. It is also a dedication to working across

organizational boundaries. Organizing round core competencies requires a radical

alternate in company organization. The first step requires figuring out core competencies,

which meet these three requirements: to provide potential access to a wide variety of

markets, to contribute to the customer benefits of the product, and to make it are difficult

for competitors to imitate. The next step is to redesign the architecture of the company

and provide an impetus for learning from alliances and a focus for internal development.

According to the study of Ccsenet Org. (2018), core competencies tend to be

complex and intangible so that it is necessary to explore the nature of resources and

competences which underpin them before exploring the concept further. The purpose of

such analysis is to permit managers to distinguish that resources and competencies act

due to the foundation of existing or potential core competencies. It is important to note

that not all the competitors in an industry will possess core competencies or distinctive

capabilities.

Core competencies Hanson et al. (2018) are capabilities that serve as a source of

competitive advantage for a firm over its rivals. Core competencies distinguish a
company competitively and reflect its personality. It emerges over time through a

structure method of accumulating and learning a way to deploy completely different

resources and capabilities. Core competencies are ‘crown jewels of a company’, the

activities the company performs particularly well compared with competitors and through

which the firm adds distinctive price to the products or services it sells to customers.

Core competencies could be a deep proficiency that permits a corporation to

deliver distinctive price to customers (Bain and Company, 2018). It embodies associate

organization’s collective learning, notably of a way to coordinate various production

skills and integrate multiple technologies. Such a core ability creates property

competitive advantage for a corporation and helps it branch into a large form of

connected markets. Core competencies additionally contribute considerably to the

advantages a company’s merchandise provide customers. It is arduous for competitors to

repeat or procure. Understanding core competencies permits firms to speculate within the

strengths that differentiate them and set methods that unify their entire organization.

Hamel and Prahalad (2012) suggested three tests for identifying core

competencies. The first is it should provide access to broad range of market, second is

they should help differentiate core products and services, and lastly they should be hard

to imitate because they represent multiple skills, technologies, and organization elements.

Mostly, the development of core competencies ought to specialize in long run flat form

capable of adapting to new market circumstances; on distinctive sources of leverage

within the worth chain wherever the firm thinks it will dominate; on components that are

vital to customers within the long run; and on key skills and data, not on products.
 According to Pratt, Gutierrez, and Rouse (2017), core competency is an

organization's defining strength, imparting the foundation from which the business will

grow, trap upon new opportunities, and deliver value to customers. A company's core

competency is now not easily replicated by means of other organizations, whether

present rivals or new entries into its market.

 A corporation can have more than one core competency. Core competencies,

which are every now and then known as core capabilities or special competencies, assist

in creating a sustained competitive advantage for organizations. The thought of figuring

out and nurturing core potential to drive competitive advantages and

future growth applies to groups throughout industries.

The core competence must be a primary factor for strategy formulation as it is an

important source of profitability (Kay, 2018). Many have acknowledged the importance

of the core competence concept by suggesting core competence models to sustain

competitive advantage. One stream of research suggests core competencies to be at the

base of all competitive advantage. A core competence is concerning the information on

successes or failures in recommending information resources. It is conjointly outlined

because of the ability to control expeditiously among the business environment and to

respond to challenges linking its definition directly with performance. Companies are

likely to be different in terms of their abilities to select, build, deploy, and protect these

core competencies. The concept of core competence has been developed to support more

efficient identification and utilization of an organization's strength.

 According to Agha, Alrubaiee, and Jamhour (2018), core competence was

measured through three dimensions: shared vision, cooperation, and empowerment.

Competitive benefit was once also measured thru flexibility and responsiveness. The

proposed model was used to examine the context of Paint Industry in the UAE. The

survey was administered electronically to a total of seventy seven managers. Results

pointed out that it appears to be consistent and reliable scale. Finding indicates that while

core competence has a strong and wonderful effect on competitive advantage and

organizational performance, competitive advantage has also significant effect on

organizational performance. Results verify the various importance of core competence

dimensions on competitive advantage and organizational performance. It has additionally

been determined that flexibility has greater impact on organizational performance than

responsiveness. To remain competitive and obtain competitive advantages, managers can

try to increase organizational performance with the aid of managing each dimension of

core competence i.e., shared vision, cooperation, and empowerment.

Competencies are attributes like skills, knowledge, and technology associated

relationships that are common among the competitors in a business (Husher 2014).

Competencies are additional typically developed forever however may additionally be

non-heritable outwardly or by collaboration with suppliers’ distributors or customers.

Competences are distinguished from core competencies by the fact that they do

not produce superior performance and that they are not distinctive when compared to the

competencies possessed by other companies in the industry. On the other hand,

competencies are essential for survival in a particular line of business. Competencies also

have potential to be developed into core competencies.

Importance of Core Competencies

Core competencies are the collective learning of the organization, particularly

how to coordinate the varied production ability and integrate multiple stream of

technologies. A company, if it is known for its core competencies, is capable of making

additional price. Core competencies should coalesce around people operating within the

organization. These people ought to acknowledge their effort in building and

strengthening these core competencies.

The most important advantage of having core competencies is having a long term

competitive advantage. These competencies help in bridging the gap between

performance and opportunity, thus helping a company in being a potential leader in the

industry. By linking traditional business to products and service of the future, the

company acquires greater opportunity for success. This also helps in activation of the

company by acting as a guideline for diversification.

Core competencies also are associate indicator that resources are being employed

within the right places within the correct quantity. A business ought to target outsourcing

all non-core activities which is able to contour the operations to encourage learning

atmosphere congruent to their competencies.

 Core competencies also help in the development of core products. They should

have access to all the primary component of a complex product which can help in long

term foothold in that particular industry. This complex product can then be used to create

a pipeline of products.

Core competencies are meaningful if they are related to an attribute valued by the

market. Customers need to perceive a consistent difference in important attributes

between the producer’s products or services and those of its competitors. Intel

particularly uses this. Their core competence lies in developing an array of

microprocessors in very short time. With the proven attribute of speed and quality against

other competitors, this core competency provides a distinctive competitive advantage.

Last but not least, core competencies make a company focus on extensive R&D

(Cleverism, 2014).

Classification of Core Competencies

Taylor (2012) indicated that there is a need for an organization to analyze and

build core competencies around the following areas: leadership effectiveness, workforce

capability, organizational structure, operational performance, customer satisfaction, and

innovation.
Competitive Advantage

Competitive advantage is often seen as the overall purpose of strategy (Husher,

2014). Some texts use the phrase superior performance to mean the same thing.

Essentially, a business can be said to possess competitive advantage if it is able to return

higher profits as a proportion of sales than its competitors.

The higher profit means it will be ready to commit additional maintained profit to

reinvestment its strategy, so maintaining its lead over its competitors in associate

business. Once this superiority is maintained with success over time, a property

competitive advantage has been achieved. Competitive advantage is often lost once

management fails to reinvest the superior profits in such the way that the advantage is not

maintained.

A power is gained by an organization when it can provide the same value as its

competitors but at a lower price, or can charge higher prices by providing greater value

through differentiation. Competitive advantage results from matching core competencies

to the opportunities (BusinessDictionary, 2018).

A competitive advantage is an advantage over competitors gained by offering

consumers greater value, either by means of lower prices or by providing greater benefits

and service that justifies higher prices.

 Porter (2018) suggested four "generic" business strategies that could be adopted

in order to gain competitive advantage. The strategies relate to the extent to which the

scope of a business' activities are narrow versus broad and the extent to which a business

seeks to differentiate its products (tutor2u.com, 2018).

Any person or entity (competitor) could be a rival against another. In business, it

is a corporation within the same business or an analogous business that offers an

analogous product or service. The presence of one or additional competitors will cut back

the costs of products and services because the firms try to gain a bigger market share.

Competition additionally needs firms to become additional economical so as to scale

back prices. Fastfood restaurants McDonald's and Burger King are competitors, as are

Coca-Cola and Cola, and Wal-Mart and Target (BusinessDictionary, 2018).

Leadership Effectiveness

Leadership effectiveness is “the successful exercise of personal influence by one

or greater people that results in engaging in shared targets in a way that is for my

part gratifying to these involved” (Cooper and Nirenberg, 2012). This definition arouses

controversy when examined from perspectives based on behavior in different contexts.

Although this definition most comfortably applies to the interpersonal, small-group, and

community levels determined within normal work environments, in almost all political

arenas and in some huge organizations, leadership effectiveness will

be defined differently. For organizations in which participants or employees

are significantly affected by decisions and actions that take place at a distance with only

representative participation at best, leadership effectiveness is

the successful workout of personal impact tries by way of one or more

people that outcome in accomplishing organizational objectives congruent with a

mission while earning the prevalent approval of their constituencies (in the case of

political leadership) or stakeholders (in the case of business and civil society

organizations). Stakeholders are people who have an interest in an outcome.

In both cases, the definition's countless conceptual elements require similar

explanation because each has inspired a literature of its own to assist in making

clear its meaning and to help recognize how to use it appropriately.

Effective leadership consists of strong character. Leaders show off honesty,

integrity, trustworthiness, and ethics. Leaders act in line with how they speak, and earn

the proper to be accountable for others’ success in the company.

Strong management involves clear verbal exchange skills. Leaders speak with and listen

to workforce members, reply to questions and concerns, and are empathetic.

Effective leaders require competency in core skills (Duggan, Tara 2018).

Expertise in core competencies related with leadership roles usually enable a person to

lead others, enhance personnel, create a productive environment and get results.

Successful businesses enhance a competency model that suggests the skills, behaviors,

and know-how required for their leaders and provide training that helps personnel further
their careers. Additionally, senior leaders commonly impart teaching and mentoring to

less-experienced personnel to ensure leadership succession.

Effective leaders communicate certainly in all situations, such as in person, in

writing, and over the telephone. They use lively listening skills, such as paraphrasing and

asking questions to exchange thoughts with peers, superiors, and subordinates. Successful

leaders show off a passion for developing their subordinates by providing coaching and

motivation. They cope with complaints, get to the bottom of conflicts, and negotiate

deals. Expertise in these areas allows them to lead their subordinates to attain strategic

goals.

Effective leaders create a productive work environment for their subordinates.

They foster creativity and innovation through encouraging employees to solve problems

using new approaches. They recognize when modifications are required and take

calculated risks when necessary. Developing know-how in this core competency

enable a leader to successfully enhance a vision, talk a plan, and construct a long-range

strategy.

Workforce Capability

The term “workforce capability” refers to the organization’s ability to

accomplish its work processes through the knowledge, skills, abilities, and
 competencies of its people (Steel, 2012). Capability may include the ability to build

and sustain relationships with customers; to innovate and transition to new

technologies; to develop new products and work processes; and to meet changing

business, market, and regulatory demands.

Workforce capability is defined as the skills, knowledge, and capabilities required

by all major job roles across the sector (Carecareers, 2018). It is a robust, consistent, and

transparent framework that can be used to underpin people management strategies and

enhance organizational culture. 

The framework will assist the organization to draw in, retain, and interact a

talented, capable, and actuated work force to fulfill the long run wants of individuals

through designing/redesigning jobs to fulfill future wants, orienting worker performance

with structure strategy, and characterizing work force development priorities.

Organizational Structure

Organizational structure according to SHRM. Org (2015) is

the method through which work flows through an organization. It allows groups to work

collectively within their individual functions to control tasks. Traditional organizational

structures tend to be more formalized—with employees grouped by characteristic (such

as finance or operations), location, or product line. Less traditional structures are greater

loosely woven and flexible, with the ability to respond rapidly to changing business

environments.

Organizational structures have evolved in the 1800s. In the Industrial Revolution,

individuals had been organized to add components to the manufacture of the product

transferring down the assembly line. Frederick Taylor's scientific management

theory optimized the way tasks had been performed, so employees carried out

only one task in the most efficient way. In the 20th century, General Motors pioneered

a revolutionary organizational design in which each foremost division made

its personal cars.

Today, organizational structures are changing swiftly—from virtual organizations

to different flexible structures. The future will in all likelihood bring functional, product,

and matrix organizational structures. However, as corporations proceed to evolve

and enlarge their international presence, future organizations can also embody a fluid,

free-forming organization, member ownership, and an entrepreneurial method among all

members. Organizational structures have advanced from rigid, vertically integrated,

hierarchical, autocratic structures to particularly boundary-less, empowered, networked

groups designed to respond quickly to customer needs with customized merchandise and

services.

Organizational structure developed from the historic instances of hunters and

collectors in tribal businesses through relatively royal and clerical strength structures to

industrial buildings and modern post-industrial structures. As pointed out by way

of Lawrence B. Mohr (2009) the early theorists of organizational structure, Taylor and

Fayol (2012) assumed without the slightest question that whatever structure used to be

needed, people ought to fashion accordingly. Organizational structure was

once regarded to be counted of choice.

In the 1930s, the rebellion commenced that came to be recognized as

human members of the family theory, there used to be nonetheless now not a denial of

the thinking of shape as an artifact, but as an alternative an advocacy of the advent of

a one-of-a-kind type of structure, one in which the needs, knowledge, and opinions

of employees would possibly be given greater recognition. However, a distinctive view

arose in the 1960’s suggesting that the organizational shape is "an externally brought

about phenomenon, an effect instead than an artifact". In the 21st century, organizational

theorists such as Lim, Griffiths, and Sambrook (2010) are as soon as again proposing that

organizational shape development is very plenty structured on the expression of the

techniques and behavior of the management and the employees as restrained by way

of the energy distribution between them, and influenced via their environment and the

outcome. Organizational shape is a device used to define a hierarchy of the organization.

It identifies and directs every job and its function. Organizational structure designed

outlines how various work roles and duties are delegated, managed, and coordinated.

The factors of the organizational shape are work specialization, departmentalization,

chain of command, span of control, centralization/decentralization, and formalization. It

is a framework that helps employees achieve their desires and do their jobs and the

employee’s satisfaction.

Job satisfaction or worker pleasure has been described in many distinctive ways.

Employee satisfaction is the terminology used to describe whether or not personnel are

pleased and contented and fulfilling their desires and needs at work. Many measures

purport that employee satisfaction is an aspect in employee motivation, employee goal

achievement, and advantageous employee morale in the workplace. Each and every

difficulty is needed to be preserved with the following factors considered as

most important in employee delight; job security, relationship with immediate supervisor,

benefits, communication between employees and senior management, opportunities to

use competencies and abilities, management recognition of employee job performance,

job-specific training, feeling safe in the work environment, compensation/pay,

and overall corporate culture. Satisfaction researcher have a tendency to differentiate

between affective pleasure and cognitive job delight – affective pride is the sum complete

of pleasurable feelings and feelings associated with the job and its vicinity in the

individual’s life, whereas cognitive delight refers to rational satisfaction over particular

aspects of the job e.g., pay and everyday responsibilities. Job satisfaction

or employee satisfaction is majorly influenced by way of organizational structure. The

level of job satisfaction and effectiveness of each human depends upon an appropriate

company structure; as organization structure is the prescribed sample of work-related

behavior that are deliberately hooked up for the accomplishment of organizational goals

(Revathy & Sankar, 2018).

Organizational structure is described as a framework for the relationship of

extraordinary jobs, structures and operational techniques, and persons and corporations

who attempt to gain the aim. Organizational structure displays the levels within the

reliable hierarchy and determines the control area of managers and supervisors (Shoghi &
Nazari, 2012). It ought to be referred that an organizational

structure is considered an important capital for the corporation (Irannezhad, 2008).

According to company studies, conducting any organizational method needs considering

its requirements. One of the most important dimensions of every business is

organizational structure which needs to be considered as the second major section of the

organization after the organizational aim. The formal relations between persons,

the area of organization jobs and posts, the degree of gaining access to facts framing,

to provide an explanation for duties, to provide an explanation for jobs, how to allocate

resources, rules and regulations, mechanisms of following and performing the

rules, developing cooperation between activities are some results of creating and

designing the organizational structure (Cyert & March, 2012).

Organizations have different structures which are applied primarily based on

the conditions of every organization. To Burns and Stalker (2010), the

most effective structure adjusts itself with the requirements of environment.

Organizational structure has some dimensions. Baldrige and Adstein (2012) thought

about university’s organizational structure as a management tool and agreed that in

a university setting, organizational structure-which includes management, leadership, and

regulation sets is a managerial tool which both provides an integral ground for creating

educational initiatives and is a tool for matching university with educational initiatives

according to the study of Baldrige and Deal (2012). In order to prevent chaos in the

organization, the structure be designed in such a way that it can coordinate

staff’s capabilities so it cannot achieve the aim without a suitable organization. It

is necessary to consider the sort of organization and structure for

having efficient organizations. Since those working in organizations with appropriate

structure are more efficient and more satisfied, the importance of organization and

its design strategies grow to be more obvious (Rezaeeian, 2018).

Organizational structure helps a company assign a hierarchy that defines roles,

responsibility, and supervision (Shopify, 2018). It is the plan that outlines who reports to

whom and who is responsible for what. It is usually recorded and shared as an

organizational chart that includes job titles and the reporting structure.

The organizational structure of a small business is most likely functional – one

based on job duties. While small businesses are often casual with their hierarchy, some

type of organizational structure is required so that employees know who is supervising

their work and can help with problem-solving and other issues. That structure also helps

them understand growth potential in their jobs. That structure additionally helps them

perceive growth potential in their jobs. Additionally, associate increasing business will

minimize growing pains through its associate structure or hierarchy throughout growth

periods.

An organizational structure is a system that outlines how certain activities are

directed in order to achieve the goals of an organization (Investopedia, 2018). These

activities will embody rules, roles, and responsibilities. The organizational structure also

determines how information flows from level to level within the company. For example,
in a centralized structure, decisions flow from the top down, while in a decentralized

structure, the decisions are made at various levels.

Organizational structure defines a specific hierarchy within an organization, and

businesses of all shapes and sizes use it heavily. A successful organizational structure

defines each employee's job and how it fits within the overall system. This structuring

provides a business with a visible illustration of however it is formed and the way it will

best move forward in achieving its goals. Organizational structures are normally

illustrated in some sort of chart or diagram.

Operational Performance 

Operational performance management is the alignment of all business

devices within an organization to ensure that they are working collectively to achieve

core business goals (Techtarget, 2009). In manufacturing, OPM software integrates and

analyzes information from a range of plant sources and translates raw data feeds into

actionable information. The data is packaged as exception reviews and key performance

indicator dashboards, so that the facts can be considered in context.

OPM software program allows manufacturers to set up links between operations

KPIs and critical business metrics. As a result, they acquire insight into everything from

asset utilization to laptop uptime and plant-floor productivity

while additionally monitoring energy usage, uncovering the cause of exceptional

problems, and ensuring consistent production across multiple lines.

Operational performance management is referred to by Morris (2009) as business

performance management, corporate performance management, and enterprise

performance management, the combination of a set of procedures and

an enhancement methodology that together assist organizations optimize

their business performance. It is a framework for organizing, automating, and

analyzing business methodologies, metrics, procedures, and systems that force business

performance.

Operating performance are ratio tools which measure the function of certain core

operations for an organization or business (Investopedia, 2018). Particularly, these ratios

reveal information about how efficiently an organization is using resources to generate

sales and cash. A company with strong performance ratios is able to utilize a minimum

resource pool to generate high levels of sales, as well as a significant cash inflow.

Firm's performance is measured against standard or prescribed indicators of

effectiveness, efficiency, and environmental responsibility such as, cycle time,

productivity, waste reduction, and regulatory compliance (BusinessDictionary, 2018).

Customer Satisfaction
 Customer satisfaction is the general essence of the affect about the supplier

through the customers (Juneja, 2018). This impression which a patron makes involving

supplier is the sum total of all the technique he goes through, right from communicating

supplier before doing any advertising and marketing to post-

delivery alternatives and services and managing queries or complaints post-delivery.

During this process, the consumer comes throughout working environment of more than

a few departments and the type of strategies involved in the organization. This helps the

consumer to make strong opinion about the supplier which eventually effects in

satisfaction or dissatisfaction.

Customer’s perception on supplier helps the consumer choose among the supplier

on basis of cash value and how well the delivered merchandise goes well with all the

requirements. The supplier’s services in no way diminished after the transport as patron

seek excessive values publish advertising offerings which could assist them to use

and personalize the delivered product greater and efficiently. If he is comfortable with

the submitted advertising and marketing service, then there are exact chances for supplier

to preserve the clients to beautify repeated purchases and make excellent commercial

enterprise profits.

Customer satisfaction indicates the fulfillment that customers derive from doing

business with a firm (Myaccountingcourse, 2018). In other words, it is how completely

satisfied the customers are with their transaction and overall experience with the

company. Customers derive pleasure from a product or a service primarily

based on whether or not their need is met effortlessly, in a convenient way that makes

them loyal to the firm. Hence, customer satisfaction is an essential step to gain customer

loyalty. Organizations calculate the customer satisfaction rating(CSAT) which is

the common rating of a customer’s responses, the net promoter score (NPS)

which indicates the probability that a purchaser refers a brand to some other person, and

the customer effort score (CES) which suggests how convenient it is for a customer to

do commercial enterprise with a firm. The customer satisfaction metrics are then used to

estimate customer behavior.

According to Chambers (2017), teams that measure consumer satisfaction can

easily calculate the expected danger of unhappy customers. By putting a variety to

the significance of customer satisfaction, one can have more meaningful conversations

with the boss and company about investing in the team. The entire group may be

committed improving consumer satisfaction day in and day out. When progress is

measured, benefits can be experienced. Satisfied customers will suggest to their

network. Customer advocacy is a very efficient form of marketing. Small

businesses estimate that 85% of their new business comes from word of mouth.

Innovation
 To Hobcraft Paul (2018) innovation is frequently too intangible, full of unknowns

as the very nature of anything new and different. Innovation risk leaves many executives

very uncomfortable. Organizations get uncomfortable with the words “radical”,

“intangible”, “unknowns” and different phrases like these when they form part of the

conversation. It often begins to result in that “risk twitch”, the place that careful

administration for short-term performance might emerge as threatened, or

the manager feels any decision is ‘going out on a limb’ and perhaps career threatening.

That growing uncomfortable feeling that innovation places their bonus at “risk” so they

like to ring-fence innovation as plenty as possible. Now some of that ring-fencing is

fine, risk should be contained to hold it manageable but most innovation now does

not represent organization risk, yet it receives caught up in that volatile concern that

innovation appears to induce.

Actually, innovation had been managed at the core, the risk management for it

would be very heightened and managed differently, however there are only few

companies with innovation as their core. So discussion on danger and innovation is

usually welcomed. The more it is spoken about, the better of what is coming toward.

Speaking about managing risk and innovation can become more comfortable, yet when

frequently heard on the discussions on this innovation

risk, where they hold overemphasizing “risk-appetite, risk-attitude, risk-adversity,

broader risk, even risk-contagion,” it may begin to make saomeone nervous.

Reality sincerely is, when most of the innovation is exploring the unknown

to alternate the regarded for something better, then groups seem to go into

a certain “lock-down” when it manages the innovation-risk equation.

Innovation stays uncomfortable for many senior executives.

Recently, there is latest PwC report on “managing risks and enabling boom in the

age of innovation” as they continued to periodically provide threat an innovation focus.

Greater reviews are needed on innovation and risk. Two or three reviews have been

produced around this ‘risk and innovation’ theme over the years, usually beneficial to

refer to. This contemporary one had an opening theme about innovation being described

in more progressive terms such as section of the fourth industrial revolution,

the second machine age, the cognitive age, and this is adding more pressure to innovate

or search for “greater innovation within companies”. Of course, the more investments in

innovation made, the likely the risks will increase. So the record polled 1,500 executives,

focusing on managing innovation risk and how advantageous they are in managing this

risk-reward balance needed for innovation. It used to be

appropriate to strive to locate some new ways to seem to be at the changes going on in

innovation. Innovation and altering threat panorama is making people assume differently.

This is the “new innovation era”, the place technology is underpinning so there is a good

deal of innovation’s activity and outcomes.

Innovation according to Phillips (2018) must declare war on the “status quo”.

Innovation and efficiency are itching for a fight.  One of them will win.  Either efficiency

will defeat innovation, and leave innovation as a nice to have, valuable at the fringe, or
innovation will win, but do so graciously, recognizing the importance of efficiency and

demanding only a return to balance between efficiency and innovation. The final

argument is that irrespective of what wins in the organization – innovation or efficiency –

the market has already determined. The market has indicated that efficiency is vital,

however innovation is significant. Innovation is vital because of the increasing pace of

change, the fast acceptance and adoption of latest merchandise and services, and the

falling barriers to market entry. The clock speed of the market is accelerating, and one

cannot compete by becoming more efficient.  This thinking is akin to having a car with

ever increasing gas mileage in a drag racing competition.  The car may be more efficient,

but that is not the competitive advantage any more. Innovation, like many of the other

corporate strategic waves, will simply enter the business model as a “must have” core

competency, and take its rightful place alongside quality and Six Sigma and a lot of other

management strategies. 

The difference is that innovation is a growth strategy and a differentiation strategy

rather than a consolidation or efficiency strategy, so its entry into the lexicon may require

a different style of thinking and attitudes from senior executives.  The model cannot

change until it needs to, and until there are people to shepherd its change.  One day, ten

years or so from now, people will look back and wonder what all the fuss was about. 

Innovation competencies and core capabilities were inevitable for competitive

differentiation.  Innovation as a core competency is inevitable. The question is: Will the

organization shift quickly enough to adopt innovation as a core competence? To not bend

innovation to the company can, however bend the company to innovation. People who do
can gain long run success. People who ignore or taunt innovation currently can fight a

way tougher fight later – making an attempt to adopt innovation whereas fighting for

market share with competitors that created the transition earlier.

Sales Performance

Sales performance management (SPM) is the practice of monitoring and guiding

personnel to improve their ability to sell products or services. Software programs are

available to enhance the sales performance management process. These applications

typically streamline various activities in the corporate performance management process

and encourage behavior that drives sales. A key objective of the sales performance

management process is to educate and motivate salespeople to set goals and satisfy

customers. SPM software typically includes components  for goal setting and planning,

feedback, skill development, and performance review. SPM software can also be used to

track information about such things as sales quotas, territories, incentive compensation,

job evaluation, and forecasting. (Rawson, 2018).

A sales performance analysis is a way to measure sales progress over a period of

time. The analysis allows the sales team to identify weaknesses in the sales strategy and

make changes so that the results can be improved over the next period. The data can also

be used to set realistic sales performance goals for the business.

 When a company neglects to accurately analyze sales performance, it can put the

business at a disadvantage compared with the competition. A vulnerability or defect in

the sales pipeline, strategy, or team will continue to go unnoticed if the owner does not do

a regular analysis of the situation. Over time, even a small issue could turn into a

catastrophe that is hard for business to recover from. It is wise to uncover issues as early

as possible so that proper steps can be taken to resolve the issue in the sales process

(Balle, 2018).

Variety of Product

According to Amaldoss and He (2010), firms offer a variety of product to satisfy

various client desires. The competition among firms that provide such product usually is

non-local as a result of consumers purchasing the product simply on the world wide web.

Even if sufficiently large variety of product is accessible, the preferred product of some

consumers still is also out of stock. It is also conceivable that a consumer’s most well-

liked product is also on the market, however the buyer might not be informed regarding

them.

When a large range of companies compete, prices area unit strictly increase with

informative advertising for moderately valued products, whereas the opposite finding
holds when the merchandise products are extremely valued. Intuitively, if the base

valuation of products is moderate, some informed consumers will purchase only one

product at the best. Consequently, the price sensitivity of demand varies across

consumers and becomes a very important driving force for the results. Informative

advertising increases the relative importance of consumers with area unit less sensitive to

value and thereby encourages companies to charge the next value. However, when client

valuation is sufficiently high, all informed consumers will gain surplus by shopping for

any product in their thought set. Therefore, firms cut costs to attract marginal consumers.

What is the effect of diversity in consumers’ tastes on equilibrium price? In

market during which consumers’ taste area unit is a lot of numerous equilibrium prices

area unit is lower if consumer valuations area unit is moderate. This result reverses if

consumer valuations area unit is high. If the number of products out there in an exceeding

market remains constant however consumers’ tastes become a lot of numerous, fewer

consumers can have the chance to buy the product that matches their preferences. This

scenario greats two opposing forces. On the one hand, firms should inspire shoppers to

purchase their less well-liked product and therefore vie on value. On the other hand, firms

face fewer direct competitors in the market, because market coverage declines, which

softens value competition. Overall, when client valuations area unit is moderate, prices

area unit is lower if there is bigger diversity in consumers’ tastes. The opposite result

prevails if consumer valuations area unit is high.

 The number and range of brand or product offered by a supplier vary. How many

variants of a product a supplier markets will depend on the degree to which the market is

segmented and the number of product variants offered by competitors. In making product

variety decisions, the firm must consider how to position its brands so as to serve its

target market segments without excessive duplication of brands in any segment,

and the additional costs of producing small volumes of many varieties with consequent

loss of standardization economies (Afferson, 2005).

Customer

A customer is a person or enterprise that purchases the items or services

produced by way of a business. Attracting customers is the foremost intention of most

public-facing businesses because consumers create the demand for goods and services.

Businesses often compete through advertisements or diminished prices to appeal to an

ever-larger consumer base. Businesses regularly observe the adage "the consumer

is always right" because pleased customers are predicted to continue

buying items and offerings from businesses that meet their needs. Many organizations

closely monitor the relationships they have with customers, often asking for comments

to learn whether new products have to be created or changes to be made to what is

presently offered. Virtually everybody in a modern-day financial system buys products or

services from companies, and so nearly every body at least now and again acts as a

customer. Several features mark a purchaser as opposed to a customer or vendor.

Customers are additionally in all likelihood to make purchases with

their own money, or the cash given to them by means of others who understand them

personally. Unlike a purchasing agent, who can also be shopping for goods wholesale for

use in a commercial or industrial setting, proper customers are almost usually

people who purchase products with cash or savings that belong to them, as an

alternative than to a company entity employing them.

Businesses regularly take eager interest in understanding the kind of person who

buys their products as an aid to focusing their advertising and marketing method and

tailoring their stock to enchantment to the most rewarding viable consumer base.

Customers are frequently grouped according to their demographics. Age, race, sex,

ethnicity, profits degree, and geographic location all go into a customer's demographic

profile. Knowing these matters about the humans who store with a commercial

enterprise builds up a photo of the "ideal customer" or "customer persona".

This information helps corporations strategize the demographics where they are

already strong and deepen ties with loyal customers, as well as attain out

to absolutely new demographics to cultivate a public in the place where sales are

weak, therefore growing a new base of customers for similar expansion.

Customer service, the manner of ensuring consumer pleasure with a accurate or

service, is one of the most important elements of the seller/customer relationship. Loyalty

in the structure of desirable reviews, referrals, and future commercial enterprise can be

misplaced or received based on appropriate or bad purchaser service. Customer carrier

has moved in current years to real-time interactions that utilize automation, chats, social

media, textual content, and different potential of communication (Investopedia, 2018).

According to Market Business News (2018), a customer is a person or agency that

receives, consumes, or buys a product or service and can pick out between exclusive

items and suppliers. The main goal of all commercial enterprises is to entice clients or

clients, and make them buy what they have on sale. They also attempt to inspire them to

maintain coming back. At the core of advertising is having a properly understanding of

what the consumer desires and values. Clients are those who have a relationship with the

provider. Also, people who rent the services of an expert are clients, not customers. For

example, an attorney has clients. When a purchaser buys something, the seller right now

focuses on the next one. However, with a client, the goal is to cultivate the relationship.

In many cases, the client-supplier relationship will become comparable to a partnership.

This does not tend to occur with customers.

Related Studies

In the study entitled “Core Competencies of Mang Inasal in Lucena City” by

Medieta, Ramirez, and Tutor (2016), it was found out that Mang Inasal in Pacific Mall

and in Lucena Centro both have the same number of employees, in Pacific Mall aged 18-
22 while in Lucena Centro commonly from 23-37 years old, and most of them are males.

Leadership effectiveness is the key that makes their management strong and competitive

among the others. They give importance to their employees by giving rewards and

incentives. They know how to satisfy their customers by providing them good food and

services. Organizational system and structures of Mang Inasal is really good because they

concentrate in their day-to-day operations. They are highly competent in customer

satisfaction and relationship. Problems they have encountered more about store design

like it never undergoes any renovation according to the employees and has poor

ventilation that affects the ambience of the store. They also encounter problems in the

employees regarding their attitude because some of them do not value and practices

teamwork.
Conceptual Framework

INPUT

To determine thebusiness
profile of Butter and Coffee
Cafe ; the demographic
profile of employees and PROCESS OUTPUT
customers; the core
competencies as perceived by
the employees in terms of Interview Proposed
leadership effectiveness, enhancement on
Questionnaire
workforce capability, and core competencies
organizational structure; the Interpretation and and management
core competencies as growth of Butter
perceived by the customers in data analysis and Coffee Cafe
terms of operational
performance, customer
satisfaction, and innovation;
and the growth of Butter and
Coffee Cafe in terms of sales
performance, variety of
product offerings, and number
of customer

Figure 1. Research Paradigm on Core Competencies and Management Growth of

Butter and Coffee Cafe

The paradigm above illustrates how the researchers conceptualized the study. This

framework shows the relationship between the input, process, and output. The input

consists of the business profile of Butter and Coffee Café in terms of historical

background, organizational structure, and technical structure; the respondents’ profile in

terms of employees’ demographic and customers’ demographic; the core competencies of

Butter and Coffe Cafe in Lucena City perceived by the employees in terms of leadership

effectiveness, workforce capability, and organizational structure; the core competencies

of Butter and Coffe Cafe in Lucena City perceived by the customers in terms of

operational performance, customer satisfaction and innovation; and the management

growth of Butter and Coffee Cafe in terms of sales performance, variety of product

offerings, and number of customer. The process that the researchers did includes

interview, questionnaires, and statistical treatment. The output is the proposed

enhancement on core competencies and management growth of Butter and Coffee cafe.
 53

Chapter III

METHODOLOGY

This chapter presents the methods and explains the procedure used in

determining the core competencies of Butter and Coffee Cafe in Lucena City. It deals

primarily with the research design, unit of analysis/respondents, research design, research

instrument, procedure/data collection, data analysis, and statistical treatment.

Research Locale

The researchers conducted the study at Butter and Coffee Cafe located at Enverga

Corner Osmeña St., Barangay 3, Lucena City.

/
/

Unit of Analysis/Respondents

All information about the company were obtained through personal interviews

and a survey questionnaire with the cafe manager, employees, and customers of Butter

and Coffee Cafe.

The researchers used an interview guide sheet to obtain information from its

owner and manager. Meanwhile, the researchers also used questionnaires to obtain

information from its employees regarding their leadership effectiveness, workforce

capability, and organizational structure. They also gathered data regarding operational

performance, customer satisfaction, and innovation from the customers.

The estimated population of customer in one week was 700. The researchers

conducted the survey last October 19-21, 2018, (5:00pm-8:30pm) with 91 respondents.

This served as the total population in which Slovin’s formula were used to determine the

number of respondents necessary for this study.

Where: n = Sample size

N = Total population (700)

= Standard error (by determining the error rate as 0.10.)

The researchers decided to use the standard error of 10% since it has a population

of 700 in order to efficiently use their time which was a limited resource in gathering

data for this research.

Research Design

The researcher used descriptive type of research method in conducting the study

by means of survey questionnaire to gather all the necessary data. They believed that this

could be attained by utilizing a design that would better define an opinion or behavior

held by the respondents for this study.

The application of design in this study helped the researchers with the collection

and presentation of the information gathered. It involved recording, gathering of facts,

analysis, and interpretation of data. By means of interviewing the management and the

use of a unstructured questionnaire, responses were gathered as data necessary to the

research.

Research Instrument

The researchers developed unstructured questionnaire for employees and customers

as respondents to distinguish the aspects that determine the core competencies and

management growth of Butter and Coffee Cafe. Appendix C shows this two-part survey

questionnaire. The first part of employee’s questionnaire contained the respondent’s

/
/

profile including name, age, sex, civil status and year of service in the job. While in the

questionnaire for the customers, the first part contained the demographic profile

including name, age, sex, civil status, and employment status. The first part served as the

moderating variables of the study. The profiles of the respondents were kept with

outmost confidentiality. The second part provided the leadership effectiveness,

workforce capability, and organizational structure as perceived by the employees, and

operational performance, customer satisfaction, and innovation as perceived by the

customers. The researchers made it easy to understand the question so that the

respondents could find the content clear.

The respondents answered the questionnaire based on four-point scale (Likert’s

Scale) to measure the core competencies. Four is the highest point and one is the lowest

point in the scale. The results were ranked and averaged to get the core competencies of

the respondents.

Table 1 shows the choices to be made by respondents using Likert’s 4-point Scale.

Table 1. 4-point Likert’s Scale

Scale Range Interval Response Verbal Interpretation

4 3.50 – 4.00 Strongly Agree Highly Competent

3 2.50 – 3.49 Agree Competent
2 1.50 – 2.49 Disagree Poorly Competent

1 1.00 – 1.49 Strongly Disagree Not Competent

 The survey questionnaire was subjected to validation. The researchers sought the

English critic and professor who are experts in the area of the study. Appendix D shows

the validation form signed by the experts and critics.

Moreover, the survey questionnaire was tested for reliability among the 15

randomly selected customers of Butter and Coffee Cafe. Appendix E presents the results

of the 15 randomly selected respondents of the café tested for study’s reliability analysis.

In the 15 items, the alpha coefficient was 0.864 which implied that internal consistency

was reflected on the items. Table 2 presents the reliability analysis of the questionnaire

with the use of Cronbach’s coefficient alpha.

Table 2. Reliability Analysis

Cronbach’s Coefficient Alpha Number of Items

0.864 15

Table 2 presents the results of the relaibility test of the survey questionnaire used

in the study. The cronbach alpha coefficient of 0.864 reveals that the research instrument

shows internal consistency among the statement.

/
/

Procedures/Data Collection

The researchers made an approval letter to the owner of the cafe to gather the

needed data through interview signed by the researchers’ adviser to expedite the dealings

with the respondents in the conduct of the study. The interview was all about the

company and its core competencies.

Data Analysis

The researchers interpreted all the data they gathered based on the

answers of the employees and the customers of Butter and Coffee Cafe. In computing all

the answered data, this formula was used:

P = f/ N× 100%

Where:

P – Percentage

f – Frequency

N – Total number of respondents

The data on the core competencies of Butter and Coffee Cafe were analyzed

using the formula below:

WM = f(W)/N ×100%
Where:

WM = Weighted mean

f = Frequency

N = Total number of respondent

/
/

Chapter IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents the analysis and interpretation of the data gathered through

personal interview by the researcher guided by the questionnaire. The tables are

presented to show and summarize the data needed to answer questions posed by the

problem. Then, interpretation by the researcher followed.

1. Business Profile of Butter and Coffee Cafe in Lucena City

Business profile discusses the historical background, organizational structure, and

technical structure of Butter and Coffee Cafe in Lucena City.

1.1 Historical Background

Butter and Coffee Cafe has the tagline “all day breakfast”. They used “Butter and

Coffee” as the name of their business because coffee is the main reason why cafes exist

and most of the food eaten with coffee contains butter as basic ingredients. The cafe was

founded on October 15, 2016 by a partnership. It was registered as a sole proprietorship

because it is much costly to register as partnership.

 was founded on October 15, 2016 by a partnership. It was registered as a sole

proprietorship because it is much costly to register as partnership.

different from other cafe’s in Lucena City. Although the cafe was established two years

ago, they planned for three years before studying it.

When the construction of the cafe started, Mr. Bernard went home to the Philippines

to oversee the place. He is also the manager because he is physically present to manage

the cafe. He said that cafe should be connected in all aspects, from interior design up to

the products that will be offered to the customers. Up to this day, no one can simulate the

service that Butter and Coffee Cafe offered.

/
/

1.2 Organizational Structure

Owner/ Manager

Supervisor Head Cook

Wait Staff Wait Staff Assistant Head Cook

Wait Staff Wait Staff Cook Cook Cook

Wait Staff Steward

Figure 2. Organizational Structure of Butter and Coffee Café

Duties and Responsibilities

Owner - each of the five people who own and finance the needs of the café.

Manager - always available to oversee the work of his/her employees. He is responsible

for all the aspects of running the business from planning menus up to managing budgets.

Front of the House

Supervisor - someone who facilitates and monitors his co-workers of their service

whenever the manager is not around. He/she is responsible for the operation of the café

outside the kitchen.

Wait Staff - three people is responsible in showing customers to their seats and

presenting their variety of menu options. They give advices on the best food and drink

choices. They take orders and deliver them to the table deftly and accurately. Lastly, they

deliver receipt and accept payments.

Back of the House

Head Cook - works in the back of the house and normally has the control in all areas of

the kitchen. He decides what to prepare for tomorrow’s operation and has the big part in

the creation of the food that customers order. He is capable of testing new recipe for the

cafe.

Assistant Head Cook - provides support to head cook in preparing of food and large

quantity of cooking. He assists in handling leftovers and preparing the needed

ingredients.

Cook - also does the same tasks as the head and assistant cook. He/She also lends a hand

in preparation and plating of the food.

Steward - washes dishes, cleans the cooking area, or does any other task inside the

kitchen only.
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/

1.3 Technical Structure

Physical Structure

Butter and Coffee Cafe is located at Enverga Corner Osmeña St,

Barangay 3, Lucena City. The cafe area is 50 sq. meter, space rented by the owner. It

has a total of 10 different tables and 10 chairs including five chairs for bars and five

long chairs, with the total of 40 sitting capacity. The counter station is located in the

right corner of the first floor, ahead with the kitchen, washing area while dining area

is located in the left corner. There is another dining area located in loft mezzanine

and outside the store. The architectural design is eye catching because of its wall

colored brown, white, and black making it look classy and expensive. The flooring is

fully tiled and it has two air conditioning units to maintain its good ambiance. The

comfort room is located outside the cafe. The tables and chairs are made of furnish

painted wood suitable for its whole interior design. As to kitchen, the floor is fully

tiled and wares are well arranged and cleaned.

Figure 3. Vicinity Map of Butter and Coffee Cafe in Lucena City
/
/

Kitchen and Dish washing

Area
Door

Dining Area
Loft
Mezzanine

Counter Station

Table
Dining Area

Door

Table Dining Dining Area

Veranda
Area

Long table with chairs

Figure 4. Store Layout of Butter and Coffee Cafe

Technical Operation

This portion tackles the technical operation of Butter and Coffee Cafe in

Lucena City with regard to the flow of operation. Products and ingredients are all
imported that is why the foods are costly. They buy it from S&R or supermarket and

some are delivered by the supplier. The stock room is located in one of their

partner’s cafe at Eduvigis Bar and Restaurant because there is no enough space

inside the place. Every night, cooks list all the ingredients for the next day’s

operation. By then, cooks arrive before the operation time and prepare them one by

one.

The café opens at 11:00 in the morning and close at 11:00 in the evening. The

wait staffs goes to the store 15 minutes before the opening but the cooks arrive at

8:00 in the morning to prepare the needed ingredients. The shifting hours of the crew

is eight hours per shift, three shifts per day: opening, mid-shift and closing. The first

shift starts at 8 AM to 5 PM, mid shift starts 11 AM to 8 PM, and for closing, shift

starts at 2 PM to 11 PM.

The process of ordering is a typical process in a normal restaurant. Crews give

menu for every customer entering the cafe. As the manager said, they offer seasonal

food quite suitable for every season especially for Christmas and Valentine’s Day.

Also, they develop original and unique dishes by using research and development

every two to three months. One of the best foods they serve is Carbonara Negra, a

spaghetti tossed in squid ink and parmesan cheese topped with bacon and soft boiled

egg. Some of their main dishes are 1) Sous Vide Rack and Pork, a French cut pork

chop with black pepper sauce and pomme puree, 2) Black Risotto an Arborio, rice

and mixed seafood sautéed and simmered in stock, wine, and squid ink and finished

with parmesan cheese, and 3) Pan Seared Smoke Salmon served with tartar sauce
/
/

and bed of warm potato salad. The price range for main dishes is 268.00 pesos up to

458.00 pesos. While for sandwiches and pasta, the range of the food is 196.00 pesos

up to 318.00 pesos. For beverages and sweet endings, the price ranges from 60.00

pesos up to 168.00 pesos. Lastly, for their “all Day Breakfast” menu like BLT

Waffle, S’mores Waffle and Breakfast Champion, the price ranges from 188.00

pesos up to 300 pesos. The cafe’s Facebook page and Instagram are actively

updated. They post photos of their newly developed dishes and the people who

visited their cafe. Also, they post some events and tricks for seasonal occasions to

attract more customers who actively visit the page.

2. Respondent’s Profile of the Employees

The profile of the employees of Butter and Coffee Cafe in Lucena City was

determined as to age, sex, civil status, and year of service in the job.

2.1 Age
Table 3. Profile of the Respondents of the Employees as to Age

Age f %

20 - 25 9 75.00

26 – 30 3 25.00
 Total 12 100.00

Table 3 shows the frequency and percentage distribution of the 12 respondents

according to age. The two ranges identified that majority of their employees are within

the age range of 20-25 with 9 respondents or 75% and age range of 26-30 with 3

respondents or 25%.

It is similar to the study of Ross and Svajlenka (2016), young adults aged 20–24 and

adults aged 25–54 are those typically considered to be in their prime working years. In

connection with Butter and Coffee Cafe, their employees are mostly aged 20-25 because

they believe that newly graduates have the high skills to operate business.

2.2 Sex

Table 4. Profile of the Respondents of the Employees as to Sex

Sex f %

Male 8 66.67

Female 4 33.33

Total 12 100.00
Table

4 presents the frequency and percentage distribution of the 12 respondents according to

sex. More than half of the employees are female which represents 8 or 66.67% of the

total population, whereas the male represents 4 or 33.33%.

/
/

The study showed similar outcome as in the study of Gerdeman (2017), wherein

employers favor men not because they are prejudiced against women, but because they

have the perception that men perform better on average at certain tasks.

2.3 Civil Status

Table 5. Profile of the Respondents of the Employees as to Civil Status

Civil Status f %

Single 10 83.33

Married 2 16.67

Total 12 100.00

Table 5

presents the frequency and percentage distribution of the 12 respondents according to

civil status. It revealed employees are mostly single with 10 respondents or 83.33%, only

2 or 16.67% are married and none is widowed or separate.

It shows similar result with the study of Eisenhauer (2015). Hiring those who is the

most effective employee engagement strategy any company can deploy . According by,

they are more efficient in doing work in a business.

 2.4 Year of Service in the Job

Table 6. Profile of the Respondents of the Employees as to Year of Service in the Job

Year of Service in the Job f %

Less than 1 year 6 50.00

1 year 3 25.00
2 years 3 25.00

Total 12 100.00

Table 6 shows the frequency and percentage distribution of the 12 respondents

according to year of service in the job. Majority of the employees have less than 1 year

of service with 6 respondents or 50%. It is followed by 1 year of service in the job with 3

respondents or 25% and same number of respondents 2 years of service in the job.

The results show similar outcome as in the study of Branson (2015). Accordingly,

one should take care of the employees and they will take care of the business. Taking

care of the people is at the heart of creating a great place to work, where people are

appreciated, engaged, productive, and thriving.

3. Respondent’s Profile of the Customer

The profile of the customers of Butter and Coffee Cafe in Lucena City was

determined as to age, sex, civil status, and employment status.

/
/

3.1 Age

Table 7. Profile of the Respondents of the Customers as to Age

Age f %

Less than 19 years old 7 7.69

20-29 years old 40 43.06
30-39 years old 22 24.17
40-49 years old 10 10.99
50 and above 12 13.19

Total 91 100.00

Table 7 shows the frequency and percentage distribution of the 91 respondents

according to age. With the five ranges set, majority of the customers are within the age

range of 20 to 29 with 40 respondents or 43.96%. It is followed by age ranges of 30-39,

50 and above, 40-49, and less than 19 years old with 22, 12, 10, and 7 respondents equal

to 24.17%, 13.19%, 10.99%, and 7.69% respectively.

The results show similar outcome as in the study of National Coffee Association

(2012) showing that coffee shop owners can find regular (weekly or more) customers in

the younger age groups, particularly those in high school, college, and the newly

employed.
 3.2 Sex

Table 8. Profile of the Respondents of the Customers as to Sex

Sex f %

Male 28 30.77
Female 63 69.23

Total 91 100.00

Table 8 presents the frequency and percentage distribution of the 91 respondents

according to sex. More than half of the customers are female with 63 or 69.23% of the

total population, whereas the male has 28 or 30.77%.

The study showed similar outcome as that of Gerdeman (2017). Women really spend

more than male. This shows that female mostly buys not because it is necessary but the

reason is driven by moods. Men, on the other hand, prefer to stick to the basics and shop

what is necessary.
/
/

3.3 Civil Status

Table 9. Profile of the Respondents of the Customers as to Civil Status

Civil Status f %

Single 46 50.55
Married 43 47.25
Widowed 2 2.20
Table 9
Separated 0 0
represents the
Total 91 100.00
frequency and

percentage distribution of the 91 respondents according to civil status. Single civil status

is comprised of 46 respondents or 50.55%, married civil status equivalent to 43

respondents or 47.25%, widowed with 2 or 2.20%, and separated with 0.

The table shows similar result as in the study from Adweek.com (2018) stating that

married people significantly make a choice from a range of possibilities than their single

counterparts to describe themselves as thrifty and correspond less likely to say they love

to spend.

3.4 Employment Status

Table 10. Profile of the Respondents of the Customers as to Employment Status

 Employment Status f %

Employed 53 58.24

Unemployed 24 26.37

Self - employed 14 15.39

Total 91 100.00

Table 10 shows the frequency and percentage distribution of the 91 respondents

according to employment status. It reveals that employed customers commonly visit the

cafe with 53 respondents or 58.24%. It is followed by those who are unemployed and

self-employed, each with 24 and 14 respondents equal to 26.37% and 15.39%,

respectively.

The results show similar outcome as in study of Gerdema (2017) where employers

favor men not because they are prejudiced against women, but because they have the

perception that men perform better on average at certain tasks.

4. Core Competencies of the Employees

The employees responded to determine the core competencies of Butter and Coffee

Cafe in Lucena City in terms of leadership effectiveness, workforce capability, and

organizational structure.
/
/

4.1 Leadership Effectiveness

Table 11. Leadership Effectiveness

Indicators Mean Verbal Interpretation
A seminar or orientation is organized regularly for 3.33 Competent
employees to be updated on the what is new in the 2.75
business.
The cafe provides incentives and rewards for 3.08 Competent
employees to come excellent in service.
The cafe conducts team building that result to good Competent
relationship between the management and staffs. 2.85
There is a focus team in-charge in delivery of
behaviors and disciplines for the staffs. 3.33 Competent
The cafe motivates the employees to contribute for
new dishes through research and development. Competent
Composite Mean 3.07 Competent

Table 11 presents the leadership effectiveness of the cafe. The composite mean is

3.07% with competent result. Based on the employees’ answers, there is a seminar or

orientation organized regularly for employees to be updated on what is new in the

business. It gains 3.33% as its average weighted mean with competent rating, which

showed how competent the cafe is by allowing their employees to gather some ideas and

trends through seminars to maintain its competencies. However, having an incentive

program and reward for employees to come excellent in service has the least rating of

2.75 with competent verbal interpretation. Other statements have the results 3.08, 2.85,

and 3.33 defined as competent.

According to the study of Schermerhorn, Jr. (2007), creating a program that rewards

the employees can encourage behaviors and attitudes which promote teamwork that

drives individuals’ talents and efforts to create extraordinary results. In connection with
the result of Butter and Coffee Cafe, management must improve its employees rewarding

system to attain its competitive advantage by satisfying not only the customers but also

the employees.

4.2 Workforce Capability

Table 12. Workforce Capability

Indicators Mean Verbal Interpretation
/
/

The chefs and crews are well-mannered, well- 3.58 Highly competent
trained, and have joined culinary competition
reflecting the cafe’s reputation.
The skills and capabilities of the management are 3.58 Highly competent
established because they came from culinary
schools.
The management develops new products and 3.58 Highly competent
work processes through the use of new
technology.
The cafe is dealing with importers for their best 4.00 Highly competent
ingredients.
The cafe lets the employees help to aim the 3.42 Competent
running standard and facility of the business.

Composite Mean 3.63 Highly Competent

Table 12 presents the workforce capability of the cafe. The composite mean is 3.63

with highly competent result. This states that workforce capability of the cafe is the focus

of the management. The cafe is dealing with importers for their ingredients, with perfect

4.00 mean resulting highly competent. Letting the employees help to aim the running

standard and facility of the business gets 3.42 mean and with competent result.

Statements that the chefs and crews are well mannered, well trained, and have joined

culinary competition reflecting the cafe’s reputation; the skills and capabilities of the

management are established because they came from culinary schools; and the

management develops new products and work processes through the use of new

technology resulted to highly competent with the same mean of 3.58%.

According to Steel (2014), capability may include the ability to build and sustain

relationships with customers; to innovate and transition to new technologies; to develop

new products and work processes; and to meet changing business, market, and regulatory
demands. In connection with the management, the cafe continuously imports ingredients

to make sure that they deliver superior and unique products to the customers.

4.3 Organizational Structure

Table 13. Organizational Structure

Indicators Mean Verbal Interpretation

There is a focus team in charge of delivering 3.00 Competent
the required behavior.
They provide standards ad systems in the 2.83 Competent
required behavior.
Employee transferability to other role/job 3.25 Competent
completes interchangeability.
The number of employees is enough to deliver 3.08 Competent
the foods ahead of time to the customers.
The cafe evaluates the abilities of the
employees by having a meeting every month. 3.42 Competent
Composite Mean 3.12 Competent

Table 13 represents the organizational structure with competent result that gained

3.12 composite mean. Evaluation of employees’ abilities and regular meeting every

month is a key to attain good organizational structure. The highest mean is 3.42 with

competent result and 2.83 is the lowest with competent result. Providing standards and

systems in the required behavior, employee transferability to other role/job completing

interchangeability and the number of employees being enough to deliver the foods ahead

of time to the customers have verbal interpretation of competent with means of 3.00,

2.83, 3.25, and 3.08 respectively. These results show how the cafe values not only their
/
/

customers but also the employees by giving them the right standards and proper

dissemination of works.

According to Duff (2018), business organizational structures came about to simplify

decision–making. The purpose of organizational structure is to distribute the decisions of

management down through lower levels where the manager and employees interpret

those decisions and put them into practice. In connection with the organizational

structure of Butter and Coffee Cafe, the management conducts meeting every month and

allow their employees to participate in decision making.

5. Core Competencies of the Customer

The customers responded to determine the core competencies of Butter and Coffee

Cafe in Lucena City in terms of operational performance, customer satisfaction, and

innovation.

5.1 Operational Performance

Table 14. Operational Performance

Indicators Mean Verbal Interpretation

The cafe assures to give fast and good service to 3.66 Highly Competent
the customer.
The employees are performing well and add 3.69 Highly Competent
some gimmick to entertain the customers.
The foods in the menu are always available and 3.54 Highly Competent
inspired by different countries culture.
The crews are using new machines and 3.56 Highly Competent
technology to easily operate the business.
The price of the food is competitive in the market 3.22 Competent
because they offer budget meal and competitive
price.
Composite Mean 3.53 Highly competent

Table 14 shows the core competencies as perceived by the customers in terms of

operational performance. The composite mean of 3.53 indicates that the respondents

perceive the cafe’s operational performance as highly competent. Ratings of 3.69, 3.66,

3.56, 3.54, and 3.22 show that the customers of Butter and Coffee Cafe in Lucena City

believe that employees are performing well and add some gimmick to entertain the

customers, the cafe assures to give fast and good service to the customer, crews are using

new machines and technology to easily operate the business, foods in the menu are

always available and inspired by different countries culture,and the price of the food is

competitive in the market because they offer budget meal and competitive price. The

results indicate that the respondents have positive reactions on the operational

performance of the Butter and Coffee Cafe.

According to the study of Martin (2018,) operational performance excellence

involves making proceeding advancements to a company in order to attain a competitive

advantage. In doing so, businesses should maximize value for the customer as well as

their claim benefits. With operational excellence, companies create effective frameworks
/
/

in which workers focus on settling issues as before long as they emerge. All workers

have the data and authorization to solve issues influencing the channels in which they

work. This reflects the results in operational performance of Butter and Coffee Cafe.

5.2 Customer Satisfaction

Table 15. Customer Satisfaction

Indicator Mean Verbal Interpretation

The food is served in a unique plating. 3.73 Highly Competent

The price of the food is affordable but the quality 3.01 Competent
is not compromised.
The place has a good ambiance with proper 3.74 Highly Competent
lighting and well-ventilated for the comfort of
customers.
The customers’ complaints are given appropriate 3.45 Competent
and immediate action.
The cafe provides good ventilation. 3.46 Competent
Composite Mean 3.48 Competent

Table 15 shows the core competencies as perceived by the customers in terms of

customer satisfaction. The composite mean of 3.48 indicates that the respondents

perceive the cafe to be competent in terms of customer satisfaction. Customers are

satisfied with the food as they are served in a unique plating and the place has a good

ambiance with proper lighting and well-ventilated for the comfort of customers which

resulted to highly competent with mean of 3.74 and 3.73. The cafe provides good

ventilation, the customers’ complaints are given appropriate and immediate action, and

the price of the food is affordable but the quality is not compromised got 3.46, 3.45, and

3.01 respectively and resulted to competent. The results indicate that the respondents

have positive reaction on the customer satisfaction of the Butter and Coffee Cafe.

According to the study of Heap (2014), ambiance and food can affect everything

from perceptions on responsiveness and reliability, how much and how fast customers

eat, how they spend, how long they stay in the restaurant, if they decide to return and

more. This is similar to the results gathered by the researchers as to customer

satisfaction.

5.3 Innovation
/
/

Table 16. Innovation

Indicators Mean Verbal Interpretation

The cafe creates exclusive dishes that attract

3.64 Highly Competent
the market.
Customers are encouraged by the
management to suggest for the cafe 3.37 Competent
management.
Customers are informed about the new
dishes through social media (Facebook and 3.40 Competent
Instagram).
The cafe has an incomparable set up based
3.54 Highly Competent
on its color and architectural design.
The cafe provides a personalized design
(orange peel with logo of cafe) for beverages 3.67 Highly Competent
that makes it more attractive.

Composite Mean 3.52 Highly Competent

Table 16 shows the core competencies as perceived by the customers in terms of

innovation. The composite mean of 3.52 indicates that the respondents believe the cafe is

highly competent in terms of innovation. Highly competent ratings of 3.64, 3.37, 3.40,

3.54, and 3.67 show that the customers of Butter and Coffee Cafe in Lucena City

strongly agree that the cafe creates exclusive dishes that attract the market, it cafe has an

incomparable set-up based on its color and architectural design, and it provides a

personalized design (orange peel with logo of cafe) for beverages that makes it more

attractive. The results indicate that the respondents have positive reactions on the

innovation of the Butter and Coffee Cafe.

 In an interview of Yes Magazine with Ms. Tania de Jong a businesswoman (2015),

she stated that it is important for a business to have a way to provide suggestions for

innovation and to be recognized for their efforts (Optus, 2015).

The study showed similar outcome as in the study of Baregheh, Davies, Rowley, and

Sambrook (2012). There is a high level of commitment to additional (new) product

innovation. This confirms the importance of innovation in this sector and emphasizes the

need for it to be considered separately in research.

6. Management Growth of Butter and Coffee Café

6.1 Sales Performance

Table 17. Sales Performance

Year Sales
2016-2017 4,800,000 -
2017-2018 6,240,000 30% increased sale

Table 17 shows the increased sales of the cafe from 4,800,000 to 6,240,000. In the

first year of operation of the cafe, consumers purchased their products and had a

competitive advantage based on its profit. After a year, the cafe gathered 30% increased

sales from total profit. This represent the competitive advantage of the cafe because
/
/

consumers considered the food, place, price and even the staffs. According to Rawson

(2018), sales performance should be monitored and guided to improve the business

ability to sell products or services. It is similar with the estimation of sales performance

of Butter and Coffee Cafe that the owner gave because they improved their sales by 30%.

6.2 Varieties of Product Offerings

Table 18. Varieties of Product Offerings

Varieties of Product 2016-2017 2017-2018

Offerings

Sweet Endings 5 6
Beverages 25 52
Pasta 5 8
Sandwiches 5 6
All Day Breakfast 5 12
Main Dishes 5 13

Table shows how cafe offers a variety of products from the time it was established

until it reached its second year of operation. As the manager said, in 2016-2017, they

only offered five dishes for sweet endings, pasta, sandwiches, all day breakfast, and main

dishes, and 25 different kinds of beverages. In its second year, 2017-2018, the variety of

products offered also increased because of the additional offering in their menu. The cafe
offered 6 kinds of sweet endings, 52 kinds of beverages, 8 different pastas, 6 different

sandwiches, 12 different kinds of all day breakfast and 13 main dishes.

According to the study of Amaldoss and He (2010), firms offer a variety of product

to satisfy various customer desires. Even if sufficiently large variety of product is

accessible, a consumer’s most well-liked product is also conceivable. In connection with

the results of Butter and Coffee Cafe, they offer food that their customers want or desire

to buy and they give large variety of products for them to be competent.

6.3 Number of Customers

Table 19. Number of Customers

Year Number of Customers

2016 – 2017 50-70

2017 – 2018 80-100 30% increased

Table 19 shows the increased number of customers. The customers increased from

25% to 30% after a year. According to Mr. Bernard, in the first year (2016-2017) of the

cafe, they only had 50-70 customers per day but on its second year (2017-2018), they

had 80-100 customers per day because Butter and Coffee Cafe is being recognized by the

customers.
/
/

According to Investopedia (2018), many businesses closely monitor the relationships

they have with customers, often asking for comments to learn whether new products

have to be created or changes have to be made to what is presently offered.

Virtually everybody in a modern-day financial system buys products or services from

companies, and so nearly everybody at least now and again acts as a customer. This is

similar to the results of the gathered data as to number of customer which reflect how the

management monitors their relationship with the customer to increased the sales,

products, and number of customers.

Proposed Output

The researchers proposed a reward system to enhance the core competencies as to

leadership effectiveness and organizational structure. The reward system can influence

the employees to do their job wholeheartedly. Therefore, by doing their best, employees

can attain their leadership skills which will be reflected on how they satisfy their

customer. Also, this will be reflected on how the management treats their customers to

achieve good organization structure.

The researchers suggested for a new design of the cafe’s menu and tie-in pricing

strategy to satisfy the customers when it comes to food and price.These enhancements

were based on the survey that the customers and employees of Butter and Coffee Cafe

answered.
 2

Chapter V

SUMMARY, CONCLUSION, AND RECOMMENDATIONS

This chapter deals with the summary of the study which includes the findings and

the conclusions drawn from which the recommendations were based.

Summary

The study aimed to determine the core competencies of Butter and Coffee

Cafe. It also assessed the business profile of Butter and Coffee which included its

historical background, organizational structure, and technical structure. Moreover, the

researchers determined the profile of the employees and customers as to their

demographic profile; obtained information from its employees regarding their leadership

effectiveness, workforce capability, and organizational structure; and gathered data

regarding operational performance, customer satisfaction, and innovation from the

customers.The researchers used the descriptive type of research subjecting 91

respondents through convenience sampling of customers who have already went to eat in

Butter and Coffee Cafe. The growth of Butter and Coffee Cafe as to sales performance,
 3

variety of product offerings, and number of customer was also determined It utilized the

interview guide and survey questionnaires as tools for gathering data where weighted

mean was used to analyses and interpret the data.

Findings

Based on the data gathered, the following results were drawn:

1. The business profile of Butter and Coffee Cafe as to historical background is

that it started its operation on October 15, 2016 as a cafe at Enverga Corner

Osmeña St., Barangay 3, Lucena City. It is registered as sole proprietorship type

of business but the cafe is actually owned by five namely 1) Ms. Ma. Mafel

Lagos, the registered owner of Butter and Coffee Cafe, 2) Chef Andres Soriano,

3) Ms. Mylene Lacorte, the capital partner, 4) Ms. Pamela Constantino, the one

managing their financial statement and anything that involves their finances, and

5) Mr. Bernard Sollestre, a mixologist and the one who manages the cafe. In

terms of organizational structure, Butter and Coffee Cafe abides by a simple yet

functional structure. It is composed of 12 employees and they are divided into

two, the FOH or front of the house who are the employees communicating with

the customers and the BOH or back of the house responsible on the orders. As to

technical structure, its physical structure as shown the vicinity map of Butter and

Coffee Cafe indicate its nearby landmarks such as OnPoint.

 4

2. The employee profile of Butter and Coffee Cafe as to demography shows

most of the respondents have age range of 20-25 years old (75.00%) and are

male (66.67%), single (83.33%), and with less than 1 year on the service in the

job (50.00%). The customer profile of Butter and Coffee Cafe as to demography

shows most of the respondents have age ranging from 20-29 years old (43.96%)

and are female (69.23%), single (50.55%), and employed (58.24%).

3. The core competencies of Butter and Coffee Cafe as to leadership

effectiveness proved to be competent with a composite mean of 3.07%. It was

found that the cafe motivates the employees to contribute for new dishes through

research and development and a seminar or orientation is organized regularly for

employees to be updated on the what is new in the business with the highest

mean of 33.33%. The cafe conducts team building that results to good

relationship between the management and staffs with 3.08%; there is a focus

team in-charge in delivery of behaviors and disciplines for the staffs with 2.85%;

and the cafe provides incentives and rewards for employees to come excellent in

service with 2.75%.

4. The core competencies of Butter and Coffee Cafe as to workforce capability

proved to be highly competent with a composite mean of 3.63%. It was found

that the cafe is dealing with importers for their best ingredients with mean of

4.00%; the chefs and crews are well-mannered, well-trained, and have joined

culinary competition reflecting the cafe reputation; the skills and capabilities of

the management are established because they came from culinary schools; and
 5

management develops new products and work processes through the use of new

technology with the same mean of 5.58%. Lastly, the cafe lets the employees

help to aim the running standard and facility of the business with 3.42%.

5. The core competencies of Butter and Coffee Cafe as to organizational

structure proved to be competent with a composite mean of 3.12%. It was found

that the cafe evaluates the abilities of the employees by having a meeting every

month with the highest mean of 3.42%; employee transferability to other role/job

completes interchangeability with 3.25%; the number of employees is enough to

deliver the foods ahead of time to the customers with 3.08%; there is a focus

team in charge of delivering the required behavior with 3.00%; and they provide

standards ad systems in the required behavior with 2.83%.

6. The core competencies of Butter and Coffee Cafe as to operational

performance proved to be highly competent with a composite mean of 3.53%. It

was found that the employees are performing well and add some gimmick to

entertain the customers with the highest mean of 3.69;, the cafe assures to give

fast and good service to the customer with 3.66%; the crews are using new

machines and technology to easily operate the business with 3.56%; the foods in

the menu are always available and inspired by different countries culture with

3.54%; and the price of the food is competitive in the market because they offer

budget meal and competitive price with 3.22%.

 6

7. The core competencies of Butter and Coffee Cafe as to customer satisfaction

proved to be competent with a composite mean of 3.48%. It was found that the

place has a good ambiance with proper lighting and well-ventilated for the

comfort of customers with the highest mean of 3.74%; the food is served in a

unique plating with 3.73%, the cafe provides good ventilation with 3.46%; the

customers’ complaints are given appropriate and immediate action with 3.45%;

and the price of the food is affordable but the quality is not compromised with

3.01%.

8. The core competencies of Butter and Coffee Cafe as to innovation proved to

be competent with a composite mean of 3.52%. It was found that the cafe

provides a personalized design (orange peel with logo of cafe) for beverages that

makes it more attractive with the highest mean of 3.67%; the cafe creates

exclusive dishes that attract the market with 3.64%; the cafe has an

incomparable set-up based on its color and architectural design with 3.54%;

customers are informed about the new dishes through social media (Facebook

and Instagram) with 3.40%; and customers are encouraged by the management

to suggest for the cafe management with 3.37%.

9. The growth of Butter and Coffee Cafe as to sales performance proved that

they have increased their sales in the past two years. In the first year (2016-

2017), the sales amounted to Php 4,800,000.00 and on the second year (2017-

2018), the sales increased to about 30 percent which is Php 6,240,000.00 based

from the estimation of the owner.

 7

10. The growth of Butter and Coffee Cafe as to variety of product offerings was

proven. In 2016-2017, they only offered five dishes for sweet endings, pasta,

sandwiches, all day breakfast, and main dishes, and 25 different kinds of

beverages. In its second year, 2017-2018, the variety of products offered also

increased because of the additional offerings in their menu. The cafe offered 6

kinds of sweet endings, 52 kinds of beverages, 8 different pastas, 6 different

sandwiches, 12 different kinds of all day breakfast, and 13 main dishes.

11. The growth of Butter and Coffee cafe as to number of customers was proven

with 25% to 30% increase after a year. In the first year (2016-2017) of the cafe

they only had 50-70 customers per day but on its second year (2017-2018), they

had 80-100 customers per day because Butter and Coffee Cafe is being

recognized by the customer.

Conclusions

Based on the findings of the study, the following conclusions were drawn:

Butter and Coffee Cafe has obtained the core competencies. Most of the

employees in Butter and Coffee Cafe are 20-25 years old, male, single, and employed in

less than 1 year. Majority of the customers are 20-29 years old, female, single, and

employed. They are competent in terms of leadership effectiveness, workforce capability,

 8

and organizational structure due to their effort of keeping their employees effective, well-

trained, and capable of having high skills as perceived by the employees. They are

competent as to operational performance, customer satisfaction and innovation for their

effort of keeping their customers satisfied and making them experience the superior value

of foods and services that the cafe has to offer as perceived by the customers. The sales

performance of the cafe showed the difference between 2016-2017 and 2017-2018

revenues. Performance in 2017-2019 indicated increase in sales of 30% because

customers, operation, and products and services to offer were already established. As to

variety of products offering, in the year 2016-2017, the cafe offered five kinds of

products in sweet endings, beverages, pastas, sandwiches, breakfast dishes, and main

dishes. For its second year operation, the cafe already offered more than five different

dishes for every variety. Furthermore, in its second year, the cafe increased the number of

customers by 25% - 30%. These results showed the cafe’s competitiveness.

Recommendations

From the findings and conclusions presented, the following were recommended to

Butter and Coffee Cafe as formulated by the researchers:

 9

1. Butter and Coffee Cafe may consider having a reward system for their employees.

This reward system helps keep employees happy, loyal to the cafe, eager to move

up the ladder, and motivated to work harder. This reward system aims to enhance

the core competencies as to leadership effectiveness and organizational structure.

2. Butter and Coffee Cafe may consider having a new design of menu to attract

customers and to satisfy them. Redesigning of new menu is a way of giving

customers a valued service. This is to enhance the core competencies as to

customer satisfaction.

3. Butter and Coffee Cafe can provide a tie-in pricing. This strategy may help the

cafe to attract more customers. Tie-in pricing is a strategy of selling one product

on the condition that a buyer also purchases a different product. This suggestion is

to enhance the core competencies as to customer satisfaction.

4. Butter and Coffee Cafe may provide a discount card valid for one year. When a

customer purchases a 3000.00 pesos worth of B&C menu dishes, he/she can get

10% discount on his/her total purchase of products. This is to enhance the core

competencies as to customer satisfaction.

5. Butter and Coffee Cafe may provide books and other game materials. This idea

may possibly help the customers enjoy their its stay while waiting for their orders

to be served. Adding more gimmick can provide competitive advantage. This is to

enhance the core competencies as to innovation.

 10

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