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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

Ms. Malung

A Business Plan
Presented to the Faculty of College of Business Administration
Global Reciprocal Colleges
Caloocan City, Manila

In Partial Fulfillment of the Requirement for the Degree


Bachelor of Science in Entrepreneurship

Araniego, Aaron, C.
Enguito, Sheinna, A.
Guinsatao, Gabriel
Tollo, Danilo, P.

June 2021

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

Acknowledgement

We would like to thank, First, The Lord God Almighty for guiding us, for
providing the wisdom to come up with this plan, for the hope when thought
this will not prevail, for the faith and strength to finish this work. This Business
plan is made possible only because of His Grace and to give Him all the
Glory.

Special thanks to our Professor: Ms. Irene Mendoza. Thank you all the
assistance in making this plan. Thank you for the advice, comments,
correction and special to support and trust.
We also want to recognize the higher year, specially Jayzee Yu and Favy
Castro thank you for the advice for us to accomplish and understand.

Lastly, we will never forget Global Reciprocal Colleges for pushing us to our
greatness. So now, there will be no hindrances that will stop us to achieve our
goals and success in life.

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

TABLE OF CONTENTS

TITLE PAGES 1
ACKNOWLEDGEMENT 2
TABLE OF CONTENTS 3
LIST OF TABLE 4
LIST OF FIGURES 5

Chapter 1: Executive Summary 6


1.1 Business Description 6
1.2 Company Name and Logo 6
1.3 Vision 7
1.4 Mission 7
1.5 Goals 7
1.6 Integrated Marketing Proposition 7
1.7 Location of the Business 7

Chapter 2: Business and Environmental Analysis 8


2.1 Environmental Trends & Future Outlook 8
2.2 SWOT Analysis 9
2.3 Industry Analysis 9
2.4 Competitors Analysis 10
2.5 Market Share 12
2.6 Demand and Supply 12
2.7 Market Segmentation, Targeting and Positioning Techniques 13
2.7.1. Geographic Segmentation 13
2.7.2 Demographic Segmentation 13
2.7.3 Targeting 14
2.7.4 Positioning Technique 14

Chapter 3: Marketing Plan 15


3.1 Product Portfolio 15
3.1.1 Product Differentiation 15
3.1.2 Product Presentation 15
3.2 Pricing Overview 17
3.2.1 Price list 17
3.2.2 Price Computation with Mark-up Specification 17
3.2.3 Pricing Strategies 18
3.3 Place and Distribution Overview 18
3.3.1 Location of the Business 18
3.3.2 Channel of Distribution 19
3.3.3 Proposed Front Store Layout 20
3.3.4 Waste Management System 20

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3.4 Promotion Overview 21


3.4.1 Pre-launch Plan 21
3.4.2 Launch Plan 21
3.4.3 Marketing Program 22
3.4.4 Advertising tool 23
3.4.5 CSR and Green Marketing Effort 24
3.4.6 Marketing Paraphernalia 24

Chapter 4: Operational Plan 25


4.1 Production Process 25
4.2 Location and Layout 25
4.3 Machinery and Equipment 26
4.4 Name of Suppliers 29
4.5 Production and Operation Schedule 29

Chapter 5: Management and Organizational Plan 30


5.1 Organizational Structure 30
5.2 Human Resource Policy 31
5.2.1 Job Title, Description and Function, Manpower 31

Chapter 6: Management & Organizational Plan


6.1 Income Statement
6.2 Balance Statement
6.3 Statement of Cash Flow

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List of table

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

List Of Figures

Figure Page
1.1 Company Logo 6
1.2 Location of the Business 7
2.1 Market Share 12
2.2 Demand and Supply 12
2.3 Geographic Segmentation 13
2.4 Demographic Segmentation 13
2.5 Demographic Segmentation 14
3.1 Product Presentation 15
3.2 Product Presentation 16
3.3 Location of business 18
3.4 Proposed Front store layout 20
3.5 Advertising Tools 23
3.6 Marketing paraphernalia 24
4.1 Location and layout 25

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

Chapter 1: Executive Summary

The name of the business is “MS. MALUNG”. The business name


derived from the main ingredients needed to make the products malung
stands for malunggay. It is a manufacturing company. It is a business that
offers healthy, delicious, and sweet snacks which surely satisfy every craving.
Due to the demand for healthy snacks in the market,

Qualita Buddies came up with the idea of using crops like malunggay.
The difference from others is the chips that serve with a delicious flavours .
The business is in form of a partnership, which is owned and managed by the
group. The business operates six days a week (Monday to Saturday) from
10:00am to 5:00 pm and always opens on Facebook and Instagram pages.

1.1 Business Description

Ms. Malung is in the sweet and savory snack industry. It is a business


that offers healthy and delicious and sweet snacks which will surely satisfy
every craving.Due to the demand for healthy snacks in the market, Qualita
Buddies comes up with the idea of using crops like malunggay.

1.2 Company Name and Logo

QUALITA BUDDIES - “The house of delicious snacks“ Qualita” is the


italian word for “quality” which means the standard of something as measured
against other things of a similar kind; the degree of excellence of
something.“Buddies” is an english word for friends.

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Figure 1.1

1.3 Vision

Entrusted leading producers of quality and delicious snacks for the


years 50 years longer.

1.4 Mission

Ms. Malung provides quality snacks at an affordable price has


excellently made the customer's first choice.

1.5 Goal

Ms. Malung wants to penetrate the market, To become a successful


and nutritious chip around the Philippines.

1.6 Integrated Marketing Proposition

The business operates six days a week ( Monday to Saturday ) From


10:00 am to 5:00 pm and always opens on Facebook pages. Barangay
Potrero has the biggest population of barangay acacia, barangay catmon,
barangay tugatog, and barangay conceptions in the city of Malabon.

1.7 Location of the Business

The store located at 2b rimas road barangay potrero Malabon city. The
store, placed in a high foot area where walking employees can be attracted.
The store is in a kiosk-style. The manufacturing facility is placed at 13 San
diego 3rd st. Sitio Sto. Rosario Maysan Valenzuela City.

Figure 1.2

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Chapter 2 Business and Environmental analysis

2.1 Environmental Trends & Future Outlook

Due to changing lifestyles, consumers are not only opting for easy food
options but also looking for authentic and natural snack options with health &
wellness attributes, which influencing per capita expenditure in the savory
snack’s products including potato chips.

The global potato chips market is forecast to witness a CAGR of 4.4%


during the forecast period, 2020-2025. Product variety, a mix of regional
snacks flavors, changing consumer lifestyles and growth in distribution
channels are major factors contributing to increasing sales of potato chips
across the globe. The introduction of healthier alternatives, like the low-fat
and low-sodium chips, in the emerging markets also influencing the growth of
the potato chips market. However, there are many potato chip substitutes
available in the market, and this could be a major threat and likely to hamper
the market growth at some extent during forecast period.

The global potato chips market is expected to be highly competitive in


future, owing to the increasing demand for snacks products. The market is
primarily dominated by North American and European countries, due to
established culture of eating chips as a snack on a regular basis. Moreover,
China and India are experiencing increased demand for potato chips, thus
adding to the rising acceptance of the same in large proportions.

The competition in this market is expected to intensify further in the


coming years due to increased industrialization, product extensions, nutrient
innovations, and high-quality, in-house manufacturing of potato chips. Potato
Chips Market - Growth, Trends, Covid-19 Impact, and forecasts (2021 - 2026)

2.1 SWOT Analysis

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STRENGTHS WEAKNESSES

 Nutritious product with a  There has been a reduction in


cheaper price, that will satisfy snacks consumption globally
the customer's taste. due to growing health concerns.

 Introduces local sourcing,  Low scope for innovation.


which helps to know the local
suppliers.

OPPORTUNITIES THREATS

 Shift of customer preference  Some of the major competitors,


from snacks to healthy snacks that will surely gives pressure to
the product.
 Curiosity done by a consumer
which leads them to by the  Imitative flavour, and concept of
certain product. idea by others to raise a same
product.

Table 2.1
2.3 Industry Analysis

Snack food markets in Asia Pacific and Latin America experienced


growth, with nuts, tortilla and corn chips snacks showing strong growth rates
of between 6% and 7%. The baked snacks category is the largest global
product segment, with salted snacks showing strong growth. Within the salted
snacks product group, potato chips, tortilla and corn chips and meat snacks
are the largest product segments. Furthermore, an emerging trend in the
global snacks food market is the evolution of fruit snacks and nuts,
consumers become increasingly aware of the health benefits of snacks.
According to a new report published by "Global Industry Analysis,
(GIA, 2017 ),Europe is the largest global snacks market in terms of value,
with the United States and Latin America as other significant markets. The
Asia Pacific snacks foods market will post the highest growth rates, at 6% per
year until 2015.

2.4 Competitors Analysis

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Business Strengths Weaknesses Opportunity Threats

 Strong *Lesser appeal *Large part of *Shift in


brand to the other domestic consumer
recognition section of the market still choice from
. market, not saturated. traditional
 Good especially the *Charge of snack food
reputation young adults diversification to health-
in the *High-cost to health enhancing
OISHI industry.
structure. enriched food treat food
*Insufficiently ingredients. *Emergence
 Adequate
patent of new
access to
protection product
raw *Growing
materials. quality of
 Numerous smaller firms
varieties of joining the
product to industry.
choose
from.
 Good
networking
and
syndication
system

*Strong *Reduced *Brand *Increase in


Distribution consumption of expansion input costs
channel snacks *Exposure *Plethora of
*Global and local *Competition *Increase local
presence and poor disposable substitute
LAY’S *Brand margins income
positioning and *Packaging full
target segment of air
*Local souring

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*Strong brand *Unhealthy food *Introducing * more


( well-known) *Similarity of new competitor
*Loyal concept and packaging * Price (rival)
Customers will flavor to other * Attracting a * Established
surely buy their brand new customer mass-
product. *Packaging that * Adding new market
*Flavor which are looks like flavor for consultants
make them the same, even more choices Development
effective to the colors. * Do more of new line
crowd. *Information advertisemen and vertically
*Low price that was simple and t through integrating
JACK ‘N will cater low to easy social media so as to be
JILL mid class and to imitate. * Evaluate totally in
even high class (advertisements new external control of all
will buy. ) and internal services
aspects of required by
product the client.
* Boost local * Consumer
economy for taste may
developing vary from the
strong brand other country
chips. *Risk that
the service
offer/flavor
will be
copied by
the
competitors

Table 2.2

2.5 Market Share

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Which of the following are the most common and strong brand in
the Philippines?

Figure 2.1

The graph shows that majority of the 100 respondents chose Oishi brand
having 46.6% in total, followed by Jack 'n Jill with 43.2%, and less respondents
chooses Lays in 7.6% in total.

2.6 Demand and Supply

Are you willing to try “ Malunggay Chips”?

Figure 2.2
Based on the conducted survey, 99.2% respondents eat chips and
also 80.5% are willing to try Malunggay chips. So, we can assume that
Ms,Malung will be a good business for them to visit and to buy to.

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

2.7 Market Segmentation, Targeting and Positioning Techniques

2.7.1. Geographic Segmentation

Which city are you located in?

Figure 2.3

The

Graph shows that this survey was conducted along CAMANAVA AREA, we
choose this area it is because we are already along these given area, having
100 correspondents, 31.9% are located in Valenzuela, 45.4% in Caloocan,
while in Malabon has 22.7% and 10.1 respondents in Navotas.

2.7.2. Demographic Segmentation

Gender

Figure 2.4
The Graph shows that out of 100 respondents, 38.1% are male while
61.9% are female

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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

Age

Figure 2.5

The graph shows that out of 100 correspondents, 19.3% are ages 13 -
19, 67.2% are ages 20-26, 8.9% are ages 27-33 and ages 35 to 52 constitute
4.6%

2.7.3 Targeting

Considering the potential in buying snacks of a customer, which 100


correspondents depends on Taste (68.9%), Price(10.9%), Nutrition(20.2),
Appearance(0.0%). It shows that majority of the correspondents choose to
buy chips, because of its taste.

2.7.4 Positioning Technique

For upscale of Food industry, specifically in Chips, "Ms, Malung" wants


to offer healthy kind of product that can meet the expectation of an individual
consumer. It is more than a chips, considering the nutrition and ingredients
used in the production, so we want to position our product, generally on social
medias or online platforms, which publicity was given and for the ease of
knowing.

Chapter 3: Marketing Plan

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3.1 Product portfolio

3.1.1 Product Differentiation

Chips with Malunggay flavor, It is also like other existing snacks. It is


oval shaped crisps with rich in flavor and unique flavor. The malunggay flavor
makes the game plan different as its aim to lower down the unhealthy risks
flavored snack. Malunggay flavor is the new chosen flavor for it is excellent in
nutrients such as vitamins and minerals that are good for the health. On the
other hand, the packaging of this new product item its aim to start a new
image that would prevent further destruction as to its production.

3.1.2 Product presentation

The packaging supports those organizations which advocacy is to


preserve the nature and continuously love mother earth. At the below of
packaging, under the logo, there are different motivational phrases that would
remind the consumers to love themselves. The following are the five phrases
that included on the design of the packaging
 I’M PROUD OF YOU
 KEEP IT UP
 KEEP GOING
 GOOD JOB
 YOU ARE GREAT

Figure 3.1

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Plain Malunggay ( Keep it up ) Sweet Malunggay (You are Great )

Salted Malunggay (Keep Going)


Spicy Malunggay (Good Job)

Figure 3.2

3.2 Pricing Overview

3.2.1 Price list

PRODUCT SRP
 Malunggay Plain  ₱49
 Spicy  ₱54
 Salted  ₱54
 Sweet  ₱54

Table 3.1

3.2.2 Price computation with mark up Specification

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Plain flavor
Potato - 37
Oil - 30
Sticker - 50
Ziplock - 28
Total 145
145 / 4 = 36.2
36.2 x 1.35 = 49
Unit cost Mark up SRP
36.2 12.8 ₱ 49.00
100% 35% 135 %

Table 3.2

With flavor
Potato - 37
Oil - 30
Sticker - 50
Ziplock - 28
Powder - 20
Total 165
165 / 4 = 41.25
41.25 x 1.32 = 54

Unit cost Mark up SRP


41.25 12.75 ₱ 54.00
100 32% 132%

Table 3.4

3.2.3 Pricing Strategies

The pricing strategy portion of the marketing plan involves determining


how to the products come up with such price. Ms. Malung will have a
competitive price charge that can allow customer to afford the product. Pricing
will be based on the amount of product cost and 32% and 35% mark up for
the gross profit; this is enough for the business to earn with the concerns to
avoid overprice that can affect the customer buying behavior.

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3.3 Place and Distribution Overview

3.3.1 Location of the business

Figure 3.3

The store located at 2b Rimas Road Brgy. Potrero, Malabon City,


placed in a high foot area where walking employees can be attracted.
Considered store was in kiosk-style.

3.3.2 Channel of Distribution

LOGO

SOCIAL MEDIA
PRODUCER
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PLATFORMS/
E-MARKET

END USER END USER

The Distribution channel is level one from Producer to Customer, it is a


direct-distribution. This is the simplest and shortest channel in which no
middlemen involved and producers directly selling their products to the
consumers. It is a fast and economical channel of distribution. Under it, the
producer or entrepreneur performs all the marketing activities himself and has
full control over distribution.

3.3.3 PROPOSED FRONT STORE LAYOUT

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Plain
Malunggay
Spicy
Malunggay
Sweet
Malunggay
Salted
Figure 3.4

The illustration shows the proposed design of the stall. It has a height
of 2.10 meters, and width of 0.80 meters. It includes the list of product (Menu)
in front of the stall.

3.3.4 Waste management system

DATE TIME
 Tuesday  8am
 Friday  8am

Table 3.4

Since the collector of the waste management in the manufacturing


place is every tuesday and friday at 8;00 in the morning. The people in
manufacturing area decides to make a trash bin. So, all the wastes will put to
the bin and every tuesday and friday the wastes will collect by the of waste
management team.

3.4 Promotion Overview


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3.4.1 Pre Launch Plan

Activities Date
 Getting of barangay  July 2021
clearance
 Getting of cedula  July 2021
 Getting of DTI permit  August 2021
 Getting of business card  August 2021
 Distributing of business card  September 2021
 Distributing of flyers around  September 2021
CAMANAVA area

Table 3.5

3.4.2 Launch Plan

Soft launch

The business will have soft


launching thru social media September 2021
(facebook) wherein the viewer's can
order to us. First 20 orders will have
free 4pcs of facemasks. Then, those
buyer's around caloocan and
valenzuela will have free delivery

Virtual launch

The business wil have a virtual


launching it will held on google October 2021
meet. The facebook page will post
the link that will use for the
launching. The launching will have
games wherein the attendees can
get prizes from the games. The
launching will start also the
collection of the orders

Table 3.6
3.4.3 Market Program

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Marketing Description Month Freebies Costing


Program

During the July to Free 1pcs of 1 umbrella


rainy day September umbrella for is 80 pesos.
season. Ms the first 3
Maulan – Malung will customer to 80x3 = 240
Gay have a buy 3pcs of
freebies for chips
the
customers.

During October to Since it’s 50pesos per


Halloween November treat or packages
days the Ms tricks days candy
Happy Hal – Malung will the first 30
lunggay have a customers 50x2=100
freebies for will buy will
the get free
customers. candies
made from
malunggay

Christmas is December Since 80pesos t-


coming so 23 to 24 Christmas shirt
Ms Malung Day we will 70pesos
Pasko Pami have gift for give away a print
– Gay the loyal t-shirt with 80 + 70 =
customer logo Ms, 150
Malung, 150x4=600
who to buy
5pcs chips

Table 3.7

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3.4.4. Advertising tools

Flyers

Instagram Facebook

Figure 3.5

These are the tools that we need to distribute to the people of


CAMANA region to promote our business especially Ms Malung " The Home
of Delicious Snacks because these tool we reach them via flyer, business
cards and social media.

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3.4.5 CSR and green marketing

According to John R.S., Corporate Responsibility " is the meaning


obligation of the organization to serve its own interest and those of its society.
Aside from earning an adequate profit for sustenance and growth of the
business, the firm is also accountable for having a responsibility in its customers
and the society. Although it is a new and micro business, it is should also
consider different factors on how to contribute positively to its society. The
following are the business social and economic responsibilities of the business.

 Contributing towards economic growth and stability


 To use eco - friendly materials like the packaging made of paper and other
recyclable materials, that will help nature.
 To honor and protect the rights of the customers and employees.
 To generate employment opportunities especially to those aspiring working
students and unemployed people
 Provide help Protocol in area of kiosk
 Provide hand sanitizer or alcohol

3.4.6 Marketing Paraphernalia

These are the items that we want to give for our customer,
who reach our promo like buy 10pcs to get free umbrella.
We have 3 available freebees Umbrellas, Candies and T-shirts.

Figure 3.6

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Chapter 4: Operational Plan

4.1 Production Process

Prepare all the ingredients


and equipments that are
going to use.

Peel the skin of potato and


cut it into tin (oval shape)

Wash the potato nicely


until water turns out into
clean.

Place the napkins into a tray.


Drain potatoes. Place on
paper towel and pat dry.

Heat oil in a frying pan. Add the potatoes


and deep fry in batches.

Fry until it turns to


golden and crisp.
Seasoning with 26
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GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE

4.2 Location And Layout

The manufacturing facility is placed at 13 Sandiego 3rd St. Sitio Sto.


Rosario, Maysan Valenzuela City.

INSIDE AND OUTSIDE

L:147in. W:73.5

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Figure 4.1

4.3 Machinery And Equipment

Equipment materials Description

1.Strainer 
Strainer a device having holes
punched in it or made of crossed
wires for separating solid matter
from a liquid.

2.Weighing scale  Weighing scale A scale or


balance is a device to measure
weight or mass. These are also
known as mass scales, weight
scales, mass balances, weight
balances. 

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3. Stove  A stove is a device that burns


fuel or uses electricity to
generate heat inside or on top of
the apparatus. It has seen many
developments over time and
serves the main purpose of
cooking food.

4.Measuring spoon  A measuring spoon is a spoon used


to measure an amount of an
ingredient, either liquid or dry, when
cooking. Measuring spoons may be
made of plastic, metal, and other
materials.

5.Spoon  A spoon is a utensil consisting of


a small shallow bowl, oval or
round, at the end of a handle. A
type of cutlery, especially as part
of a place setting, it is used
primarily for transferring food to
the mouth.

6.Tissue paper  Tissue paper or simply tissue is a


lightweight paper or, light crêpe
paper. Tissue can be made from
recycled paper pulp.

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7.Peeler  A device for removing the skin from


fruit and vegetables.

8.Frying pan  A frying pan, frypan, or skillet is a


flat-bottomed pan used for frying,
searing, and browning foods. 

9. Gasoline  Gasoline, also spelled gasolene,


also called gas or petrol, mixture of
volatile, flammable liquid
hydrocarbons derived from
petroleum and used as fuel for
internal-combustion engines. ... It is
also used as a solvent for oils and
fats.

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Table 4.1

4.5 NAME OF SUPPLIERS

SUPPLIER ITEMS SUPPLIED ADDRESS CONTACT


NO.

YOLLY STORE POTATO(patatas) 8 Sandiego 3rd St. N/A


Sitio Sto. Rosario,
Maysan, Val
.

WEALTHYCUP- Malunggay Cainta, Rizal N/A


WEALTHTEA Powder

VICTORY ZIPLOCK POUCH #3 Stall, Victory N/A


MALL Mall, Caloocan
City.

DULCE STORE Oil 13 Sandiego 3rd


St. Sto. Rosario, N/A
Maysan,
Valenzuela.

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Table 4.2
4.6 Production and Operation Schedule

Production Delivery Selling Procurement

Monday – Everyday 10:00 am to Every Sunday


1:00pm to 5:00pm
5:00pm

Table 4.3

Chapter 5: Management and Organizational Plan

5.1 ORGANIZATIONAL STRUCTURE

GENERAL MANAGER:

ARANIEGO, AARON, C.

ACCOUNTING MANAGER PRODUCTION HEAD MARKETING ADVISER

TOLLO, DANILO, P.
ENGUITO, SHEINNA, A. GUINSATAO, GABRIEL

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5.2 Human Resource Policy

5.2.1 Job Title, Description and Function, Manpower

Position Job Description Job Job


Qualification Requirements
 Managing the  Female  Resume
performance,
training and  With Work  PSA Birth
development of Experience certificate
self and staff -
Maintain
Quality service  Bachelor’s  SSS E1
by enforcing degree
 Manage
quality and  NBI
r
customer  Effective Clearanc
service Written e
standard. and verbal
comm.
 Recommendin Skill  Pag – Ibig
g system
improvements.
 PhilHealt
 Team h
Leader
 Organizing
marketing
activities, such  Diploma
as promotional and TOR
events and
discount
shemes.

 Preparing
reports at the
end of the

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month,
including food
control and
sales.
 Checking stock
level and
ordering
supplies.

 Provide
information on
menu items
 Maintaining  Male, not  Resume
high standards more that
of quality 25 yrs, old  PSA Birth
control, certificate
 Service
Crew
hygiene, and  At least
health and high
safety. school  SSS E1
graduate
 Greet  NBI
customers and Clearanc
guests as they  With or e
approach the without
food service work
counter. experienc  Pag – Ibig
e
 Clean counters
 PhilHealt
and work
h
areas.

 Pack
customers'
orders and
hand them to
the customer.

Table 5.1

34

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