CHAPTER 1.

OUR COMPANY PROFILE

1.1 HISTORY OF THE COMPANY

1.1.1 NAME AND NATURE OF THE COMPANY

“Feliz Dientes” is a limited partnership business. As a limited partnership

business, it is composed of a general partner and limited partners who will

contribute certain amount of money, property and industry into a common fund

with the intention of dividing profits among themselves. Limited partners will

only be liable to the company’s obligation only to the extent of the contribution

while the general partner will be obliged even to the extent of his/her personal

property. This business is about dental services organized by dentists which make

it a general professional partnership.

1.1.2 BRIEF DESCRIPTION

Feliz Dientes, Ltd. is a General Professional Partnership founded in the

year 2014. This is a limited partnership led by Diane Santos as a general capitalist

partner, and four industrial partners namely Mel Jenn Anell Cruz, Mary Grace

Agas, Rolette Samonte and Edelwin Fajutagana. The company focuses on

providing quality but affordable dental services to clients of any age. To show the

passion on their chosen field of profession is the major reason of forming this

company.

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1.2 PHILOSOPHY OF THE COMPANY

1.2.1 VISION

To become the top organization providing dental services in the

Philippines.

1.2.2 MISSION

Feliz Dientes aims to provide exemplary dental care in a state of the art

facility with great affordability and excellent value.

1.2.3 VALUES

Our core values encompass our operating philosophy and principles that

guide us in our daily actions and decisions, as well as in our interactions with

others.

Excellence

We provide quality patient care in the most efficient and effective manner

to achieve optimal patient health. We will strive for excellence and continuous

quality improvement in all of our activities.

Integrity

We will act ethically, openly, honestly, respectfully, and with integrity in

our daily actions and interactions. We will act with professionalism, performing

to the highest standards of knowledge, respect, and trust.

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Respect

We respect all patients and provide them with compassionate, ethical, and

culturally appropriate treatment. We encourage collaboration and cooperation

among all staff, patients, and our community.

Innovation

We understand the need for change and embrace new challenges. We

value teamwork in our approach to finding innovative solutions to common

problems.

Accountability

We will exercise sound judgment and serve the best interests of our

patients, the company, and our community. We will be accountable for our

conduct and compliance with applicable laws and policies. We accept

responsibility for our decisions and actions. We celebrate our successes and learn

from our experiences.

Leadership

Our strength, and competitive advantage, is and always will be people. We

will develop team leadership and management skills at every level.

Social Responsibility

We are committed to improving the quality of life for our staff and

patients. We will invest in the communities we serve through service and

partnerships, and encourage all employees to contribute in their communities. We

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 will serve as advocates, especially for underserved populations, to promote equity

and reduce oral health disparities.

1.2.4 GOALS

To create a number of branches enough to provide the quality service in

different regions of the country.

1.2.5 OBJECTIVES

1. To create an established market within the vicinity through quality and first

class service.

2. To constantly increase clients every year.

3. To help underprivileged children be aware of the importance of proper dental

hygiene.

4. To educate people of the basics and benefits of taking care of their teeth.

5. To show importance of maintaining proper care of teeth starting at a young

age.

1.3 HISTORICAL BACKGROUND

The earliest known recorded case of treating tooth related problems dates back all

the way to 7000 BC, where evidence suggests that members of the Indus Valley

Civilization – located approximately where Pakistan and Afghanistan are today – treated

the mouth for tooth decay. These early treatment methods involved bow drills, which the

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ancient society used for drilling into wood and into a patient’s troublesome tooth. While

this sounds unpleasant, historical reconstructions have discovered this technique

surprisingly effective at boring out teeth rotted with disease.

Roughly 2,000 years later, the ancient Sumerians began blaming tooth decay on

tiny worms that would burrow holes into a patient’s teeth. Once imbedded, these worms

would continue burrowing holes until a tooth had completely fallen apart. Incredibly, this

theory remained part of common medical knowledge all the way until the 18 th century

when French surgeon Pierre Fauchard – known today as the “father of modern dentistry”

– published Le chirurgien dentiste, “The Surgeon Dentist” in 1728.

Despite the advances made in the Indus Valley, teeth drilling wasn’t commonly

practiced around the world. Starting with the ancient Greeks, the treatment of pain and

decay usually resulted in the patient having his tooth extracted. The idea of having a tooth

extracted from the mouth using forceps carried on well into the Middle Ages, and was

used to treat a variety of diseases.

Strangely, the individuals who performed the majority of tooth extractions were

not surgeons or doctors, but barbers. Dating back to the 14th century, barbers would use

tools such as “dental pelicans” and “dental keys” to pull teeth from a patient’s mouth.

Both of these tools were similar in design and function to the modern day forceps. While

barbers pulled teeth, they were in no way dentists or even interested in helping to treat an

individual’s oral problems. A barber’s goal was only to help alleviate the pain caused by

rotted teeth.

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 It wasn’t until the late 18 th and early 19th century that concepts we associate with

modern dentistry were developed. The work of Pierre Fauchard and his fellow

contemporaries helped to lay the foundation of much of what we know about dentistry

today. Fauchard was the first to develop a safe and effect process behind dental fillings,

and he also determined that acids produced by bacteria in the mouth was a major cause of

decay.

From this point forward, the science of dentistry began to develop rapidly. In

1840, the world’s first dental college – Baltimore College of Dental Surgery – opened.

The increased prevalence of dental studies led for the need of further government

oversight, and eventual regulation through the American Dental Association, which was

established in 1859.

Interestingly, the majority of Americans failed to develop regular brushing habits

until after World War II, when soldiers stationed overseas brought back European

concepts of quality oral hygiene to the states. Today, science continues to make

breakthroughs regarding the important role quality oral health plays in helping an

individual maintain their overall health.

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1.4 LOGO AND DESCRIPTION

Name of the company ensures wellness and compassionate service to its

patients. As the background color violet signifies the personality of being helpful

for those in need and thinking of others before you; it is the vision of the

company. The company is dedicated in giving out excellent services towards to its

patients. Also violet represents friendship, as we want to build a friendly

environment with the patients and eventually gaining their trust and loyalty to the

company. The tooth as the main character of the design stands for healthier teeth

and free from any cavity related problems. It shows that having a good dental care

can make a smile and stand out from the rest.

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1.5 SERVICE DESCRIPTION

The Dental Clinic offers a wide range of preventive and diagnostic

services including complete dental exams, urgent dental evaluations, dental x-

rays, oral cancer screening, fluoride treatments, periodontal therapy, sealants,

dental education and consultation. Also we offer different dental procedures like

tooth extraction, pasta, impaction, prophylaxis, root canal treatment, fixed partial

denture, which represents the main source of income of the clinic.

Our rates are lower than area private practices. We strive to keep our

prices affordable — usually 10 to 15 percent lower than area dental offices, and

sometimes more. You will receive high-quality care at a lower price.

1.6 LOCATION OF THE BUSINESS

Fisher Mall is one of the newest malls in Metro Manila and is located at

the corner of Quezon Ave and Roosevelt Ave in Quezon City. It is a huge

elongated structure prominently seen from the distance.

Almost all directions of different origins of jeepney and bus routes are

headed to Fisher Mall. That is why Feliz Dientes, Ltd. considred this mall to put

up one of their 1st clinics in the north. Going there takes only one jeepney or bus

ride from the following: Cubao, Fairview, Munoz, Quiapo, PRC-Morayta,

Welcome Rotunda, Pier, TM Kalaw, Pedro Gil-Taft, Manila City Hall, SM City

Manila, Lawton, Trinoma, SM North EDSA, Philcoa, Quezon City Hall,

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 Southwest Integrated Terminal, etc. Feliz Dientes, Ltd clinic is located at the

third level area where the other specialty stores and clinics are also located.

SM City Bacoor is a shopping mall in Brgy. Habay in the City

of Bacoor, Cavite in the Philippines. It is developed and owned by SM Prime

Holdings, the largest shopping mall and retail operator in the country. The mall is

the very first SM Supermall in the entire Luzonregion outside of Metro

Manila and the very first in province of Cavite.

This is where the 2nd clinic of Feliz Dientes will be located, also at the thir

level area of the mall. Clinic office hours for both location operates daily

from 11:00 AM to 8:00 PM, except Holy Week of each year where it signs off at

8:00 PM of Holy Wednesday until 11:00 AM of Holy Saturday.

1.7 QUALITY POLICY

General and Functional Policies

 Employees shall report from Monday – Friday with a total of 40 working

hours, and a maximum of 8 hours per day.

 Logging in and logging out of the employees shall be practiced according

to their designated schedule of work.

 All members must attend company meetings.

 Salary will begiven every 15thand 30thday of the month.

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  Good manners and right conduct must be observed.

 Maintain cleanliness in the working place.

 Employees should be responsible in their assigned task.

 Multi-tasking must be observed when the need arises.

 No employee shall let his or her time card be signed by another employee.

 Cell phones are not allowed in the working area.

 Proper usage of utensils and tools must be observed.

 Employees must commit to legal and ethical business practices.

Production Policies

 Employees must attend trainings to educate them on how the service is

being prepared and process.

 During working hours the employees should wear proper working clothes

such as: gloves, gown and mask.

Administrative Policies on Departments

 Prepare a daily report for the management.

 Operations Manager should be responsible to monitor the number of

services rendered by the professional dentists.

 All major business transactions must be noted by the General Manager.

 The general manager has an obligation of observing the business

production and operation if it meets the objective of the firm.

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  The manager must have a close supervision on the company’s financial

condition.

Market Policies

 Exhibit customer value to create a good customer relationship.

 Create innovative ways to sell and promote the services.

1.8 ORGANIZATIONAL STRUCTURE

FELIZ DIENTES, LTD. is governed by the General Manager. Under its direct

supervision would be the Operations Manager and the Administrative Officer. Operations

manager will be the one to check on the daily activities of the dentists while the

Administrative officer will guide the Finance, Marketing and Purchasing department.

Chart 1 below illustrates the Organizational Chart of Feliz Dientes, Ltd.

1.8.1 ORGANIZATIONAL CHART

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1.8.2 JOB DESCRIPTION AND SPECIFICATION

General Manager

Job Description Job Specification

 Responsible in supervising the  Preferably with a Degree in

entire business operation. Business Management or in any

 Responsible for planning, Business Course.

organizing and controlling business  Must have a good communication

activities which covers the and interpersonal skills.

production, marketing and financial  Must have excellent planning and

status. organizing skills.

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 Build a strong commitment with  Must have knowledge in business

individual and business customers operation.

to provide assistance with the  Open minded to any comments and

problems that customers may suggestions of its subordinates.

encounter.

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Accounting Staff

Job Description Job Specification

 Evaluate data pertaining to costs in

order to plan budgets.  Preferably with a Degree in Finance

 Must be responsible in all or Degrees in Accounting.

company’s cash flow.  Must be honest and patient.

 Keeps track of the profit of the  Proficient in analyzing financial

companies. report.

 Responsible for the reporting the  Knowledgeable in accounting

daily sales. information system.

 Act as the treasurer of the company  Must have good communication

 Should be able to suggest in skills.

promoting cost effective and  Computer literate.

efficiency on production and

operation.

 Regularly deposit and withdraw

funds of the company

 Prepares financial position of the

company.

 Responsible for accounting purposes

such as; identification of sources and

uses of capital

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Marketing Head

Job Description Job Specification

 Coordinate with the financial staff  Preferably with a Degree in

and General Manager about the Marketing.

following:  Must have a broad knowledge in

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  Reports problems in selling. marketing strategies.

 Able to provide strategies for  Creative and innovative in idea-

improvement. making.

 Administers the promotional  Must have a good communication

campaign of the enterprise. skill.

 Sets strategies on how the product  Must be persuasive and sociable.

must be promoted in the market.

 Acts as the General Sales Agent.

 Sets marketing quota

Marketing Staff

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 Job Description Job Specification

 Acts as an assistant of the Marketing  Preferably with a Degree in

head. Marketing or any Business Course.

 Must promote good customer  Pleasing personality.

relationship.  Knowledgeable about marketing.

 Acts as customer assistance.  Willing to be placed on different

 Should coordinate with the marketing environment.

head about the daily sales of the  Willing to be trained.

business.

Purchasing Head

Job Description Job Specification

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 Coordinate with the financial staff  Preferably with a Degree in

and General Manager about the Business Course.

following:  Must have leadership skills to

 Daily cost of production. direct production members.

 Able to propose solutions to  Knowledgeable on how the

problems. product is produced.

 Keeps an eye on the entire  Can work under pressure.

production process.  Must be self-organized and

 Supervises and motivates the personally neat.

production staff.

 Responsible in production

scheduling, weekly work process

and informing the GM and for the

implementation of the process.

 Regularly monitors the raw

materials inventory.

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Purchasing Staff

Job Description Job Specification

 Responsible in buying raw  Preferably with a Degree in

materials. Business Course or any Degrees.

 Responsible in producing the  Must be willing to undergo

product training.

 Cleans and organizes the working  Must be personally neat and clean.

place.  A good purchaser.

 Can work under pressure.

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 Dentist

Job Description Job Specification

 Evaluate the current health and  The ability to build relationships

condition of their patient’s teeth to with patients and colleagues;

determine diagnosis of dental  High level communication and

condition, if any interpersonal skills, for

 Inform their patients on how to interaction with patients of all

prevent dental problems and keep ages and backgrounds;

their teeth and mouth as healthy as  An interest in the welfare of

possible others and a sympathetic manner;

 Complete treatment on affected  Good administrative and

gums, decayed and fractured teeth, managerial abilities;

and perform tooth removal for  Information technology skills,

cases where there are high levels of due to the increasing use of

decay computers for keeping records

 Consider treatment methods and and accounts, and for digital

explain the options with the patient imaging of radiographs and intra-

to determine which works best for oral.

them based on their situation

 Keep all equipment functional and

clean

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 Maintain dental files for all patients

 Monitor and evaluate any x-ray

images for any part of the patient’s

oral cavity

 Refer patients to orthodontists or

other dental specialist for more

advanced procedures and care

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1.9 FINANCIAL STATEMENT DESCRIPTION

As Feliz Dientes, Ltd. started its operation in the first quarter of 2014, it shows a

good start when it comes to its financial aspect. Since it composes of four professional

dentists who are all known to be good in their chosen field, customers prefer their

services among other dental clinics that operated for a year and had been established their

business in the said industry.

As it started, the company aimed to at least have a net operating profit of around 1

Million. But as early as the start of the 4 th quarter of operating year, Feliz Dientes almost

meet its goal by attaining at around PHP 978,475.00 net income. It was a good indication

that the company operated well in the said industry.

At the end of the first operating year, Feliz Dientes, Ltd. earned PHP

1,092,733.07net income. Having a good start, the company aimed a targeted net income

of 25% increase from its previous year’s operation. It was as early as July of the second

year when they had a net income of PHP 1,103,801.56, exceeding the net income of the

first year of operation.

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 The company ended its 2015 much more than what they expected as they

gathered at around PHP 1,866,675.88 NI and this was around 70% increase from its

previous year’s net income.

Due to its previous years’ success, the management amended their new targeted

income. They had lessen it to 15%. The reason behind it is because the reference of the

15% was the last year’s operating net income. It is hard for them to meet such goal if the

reference of it was the previous year’s operation, so in order for them to still possibly

attain, they had lowered it to 10%.

In the 2016 Financial Statement, the company reported PHP 2,219,754.17 net

income. This was around 18.91% of the previous year’s operating net income.

In its first three years of operation, Feliz Dientes earned at around PHP

5,179,163.12 accumulated net income. An aggressive performance has been observed and

investors were showing interest in the said company. Due to good performance, new

clinic was being planned to open in the coming year.

Even in the aspect of profitability of each partner reflects the good performance of

Feliz Dientes with having an average of 25% return on investment.

Due to a successive increase on each year’s operating income, all partners agreed

to conduct its initial CSR project entitled “Ngiti Pinoy” to show their gratitude for the

success they had upon establishing Feliz Dientes, Ltd. They had planned to allocate part

of their company’s net income for the said project. Please see Appendix 1 for the

Financial Performance of the company for 5 years.

1.10 FINANCIAL STATEMENT ASSUMPTIONS

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1. Prepaid expense are composed of rent and insurance, rent increasing by 5% while

insurance is constant as agreed with in the insurance plan.

2. Office supplies increasing 1% per year.

3. Inventories increased 75% for the first two years, as for the business is just starting and

coping up with its demands, and then maintain a 25% increase for the later years.

4. In the non-current assets, depreciation method used is the straight-line with the

assumption that the useful lives of different categories are as follows:

a. Machineries and equipment (useful life 15 years)

b. Building improvements (useful life 10 years)

c. Tools and instruments (useful life 5 years)

5. Revenue is computed by multiplying the number of clients, rate of the operation and

number of days or weeks per year. Number of clients increasing by 10% every year, and

rate of operation by 5%.

6. Cost of service is 45% of the gross revenue.

7. Other operating expense is composed of the following with their corresponding

change per year.

a. Rent expense, increasing by 10% per year

b. Salaries & Wages, increasing by 10% per year

c. Professional fees, same assumption as the revenue

d. Office supplies, increasing by .1% per year

e. Utilities, 2% increase per year

f. Repairs and maintenance, .05% increase per year

g. Depreciation expense, discussed earlier

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h. Taxes and licenses, fixed

i. CSR budget, 30% of net income. Given the condition that if Net Income is 1M

below, the seminar and outreach program will not be conducted and will conduct

other CSR activity to be planned upon assessment of the prior years’ net income.

P/300,000.00 will be allotted per area, so the number of outreach per year will

depend on the prior years’ income.

j. Miscellaneous expense, .08% of the revenue.

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