DE LA SALLE SANTIAGO ZOBEL SCHOOL

Br. Rafael Donato FSC Night High School

University Avenue, Ayala Alabang Village, Muntinlupa City

Socio-economic Impact Study

on A-more Bakery

Submitted to:
Mr. Adrian Villaflor

Submitted by:
Alcaria, Angeli Crisel S.
Crisostomo, Jasper Lloyd S.
Elvina, Jaspher Nherie S.
Gilbero, Bryan Lloyd G.
Sanchez, Sophia M.
 I. EXECUTIVE SUMMARY
The researchers have chosen A-more Bakery as the target of this Socio-economic Impact
Study. The research includes how a business affect the society and aims to know what certain
societal impact the chosen business creates or in short, its externalities.

A-more Bakery is a bakery establishment located in Pilar Village, Las Pinas City, founded
in 1986. A-more Bakery expects to catch the interest of a regular loyal customer with its broad
variety of pastry products. The company plans to build a strong market position in the town with
the baking industry experience and mild competitive climate in the area. A-more Bakery aims to
offer its products at a competitive price to meet the demand of the middle-to higher-income local
market area residents. This study is conducted through the interview with the bakery owner at the
Pilar Village, Las Pinas City. Through this socio-economic impact study, the researchers aim find
out how the business operates and focus on the externalities of the that affect the society.

From a relatively small and unpopular sector, baking in the Philippines has grown into a
large industry that provides greater business and employment opportunities. Breads became a huge
part of the Filipino lifestyle and it helps us survive through the day. It is the second staple food
after rice. The baking industry which is primarily traditional in nature has continued to thrive in
today’s modern era. Local baking business like A-more Bakery remains to be a strong and reliable
market. As the researchers interview the owner, we gathered the data needed for this study. The
answers are sufficient in analyzing the bigger picture of the data. With it, we were able to identify
the externalities of the business and review related information to improve the credibility of our
analysis. The business has good relations with its employees and customers. It also gives
appropriate benefits to the employees and manages them well. Overall, the management and
information about the business are good.

Small business like A-more Bakery contributes to local economy by bringing growth and
innovation to the community in which the business is established. It also helps stimulate economic
growth by providing employment opportunities to people who may not be employable by larger
corporations. A-more Bakery tend to attract talent who invent new products or implement new
solutions for existing ideas. In the end, we concluded that indeed, the A-more Bakery has given
great impacts to the society and its members.
 II. INTRODUCTION
A. Aim and Objectives of the Study
General Objectives
• To identify the contributions of a business to a society;
• To gather information about the externalities of the chosen business;
• To analyze the effects of the externalities of the chosen business to the society;
• To land at a conclusion about the study and give recommendations for the
improvement of the chosen business;
• To know how a society can also affect the business.

Specific Objectives

• To know how the A-more Bakery affects the community of Pilar;

• To know how A-more Bakery helps the community:
• To know what aspect of society can affect the management of A-more Bakery;
• To gather information about the negative effects of A-more Bakery gives to the
community, if there is;
• To give recommendations for the improvement of the management of A-more
Bakery.

B. Background of the Study

The study is conducted to know the socio-economic impact of the business chosen by the
researchers. The researchers gather information to analyze the externalities the business has
that can affect or is affected by the society. There are a lot of businesses that are being opened
every day. This study provides an understanding on what benefits can a business contribute to
the society it is in and what are the negative effects that it can also bring to the society. The
study will also show how a certain action of a business can drastically affect a society. A set
of question will be given to the chosen business and the researchers will interview them. The
data gathered will be used as factors in this study.
 With bread being the country’s second staple after rice, the bakery business is one of those
ventures that is sure to bring multiple returns with just a minimal investment. Filipinos love to
eat bread and it is a tradition. Like rice, these baked goods are a staple fair in the local dining
table and are typically consumed for breakfast or as a snack. This fondness for baked goods
opened opportunities for entrepreneurs to build business, innovate and explore the endless
possibilities in baking. Businessmen in the baking industry have noted that it is a rewarding
and profitable venture. Baked goods are sure sellers because everyone practically eats bread
and it is always the choice as a convenient, on-the-go food.

Philippine Statistic Authority started in a 2013 Annual Survey of Philippine Business and
Industry released in 2016 that bread, cakes, pastries, pies and similar perishable bakery
products accounted for 6,618 establishments or 26.3% of the total 25,149 number of
manufacturing establishments in the formal sector of the economy. The baking business in the
country has also went through various transformations – from the technologies used in baking
to the new flavors introduced by foreign players who have established their presence in the
country. As what market research firm Euromonitor International stated, innovation remains
vital for baked goods companies to address the need of consumers for variety. (Ortiguero,
2018)

Considering the large and reliable Filipino market, the local baking industry remains
strong. This can be seen in the number of bake shops and stores located in commercial malls
and busy streets across the country. Baking in the Philippines has grown into a large industry
that provides greater business and employment opportunities. Though it is traditional in nature,
it has thrived in today’s modern era and trends.

The researchers’ chosen business is the A-more Bakery located in Pilar, Las Pinas City.
Founded in 1986, it has been the main bakery of the people living in the community. It is a
24/7 shop and is very accessible for the neighborhood. The researchers conducted this study to
determine the viability and profitability of putting up of bakery in Pilar, Las Pinas City and see
if they meet the need and wants of the customers through providing healthy and tasty baked
goods.
 III. METHODOLOGY

Methodology is the process used to collect information and data for the purpose of making a
research paper. In line with that, here is the data gathered from the business. The data was
collected through the interview conducted. It aims to know the background of the business and
how the business can help the society it is in (externalities of the business).

A. Data Collection

INTERMEDIATE AND FACTOR INPUT

Source of Raw Material External

Type of Supplier Independent
Stage of Production Manufactured
Market Power High
Source of Labor Outside the Community
Nature of Engagement Direct
Basis of Compensation Competitive Wage
Unionization Non-Organized
Human Resource Department Not Available
Source of Fund Own Savings

MANAGEMENT

Source of Managers Insider

Training In-house
No. of Workers 20

The researchers decided to use A-more Bakery as the subject of the study. After setting up
an appointment with the business owner, the researchers have proceeded in making an
interview questionnaire. Having the questionnaire, the researchers conducted the interview last
September 26, 2018. The interview focuses on the aspects of the business and their externalities
that affect the society and the consumers’ perceptions about the business. NOTE:
Questionnaire can be found on the appendix (Chapter V).

Based on the data gathered, A-more Bakery started in 1986 with a capital of PHP 500,000
from the owner’s personal savings. They have contracted a supplier for their materials and
ingredients who caters their supplies everyday. The bakery has 20 employees composed of
master baker, bakers and sales clerks. The employees were directly hired by them regardless
of what community they belong to. The owner has not disclosed the salary of her employees
but she has stated that it is above minimum wage. Aside from the salary of her employees, she
has been paying for their SSS and PhilHealth contributions.

The bakery is located near the terminal of the tricycles and it is at the corner of the streets.
Even though the competition is stiff as there are many other bakeries at the area, the owner
views it as normal and stated that she is earning a desired profit. Due to the success of the
bakery business, she was able to create new business like computer shop and restaurant near
the bakery shop. She has stated that her bakery is earning PHP 15,000 a day. A daily collector
from the municipality has been collecting their wastes ever since. The bakery is open for 24/7.
Complaints about her unpleasant employees have been received. As a result, the owner
continuously reminds her employees to always have a pleasant behavior. Her qualification for
her employees is being able to compute. For bakers, it is okay to have just little knowledge for
the master baker will be the one to teach and train the employees. To celebrate the birthday of
the owner, she takes part in welfare activities like feeding program in her community. The
owner has stated that the edge of her business is it is very convenient to go to or accessible.
Also, bread is a staple food of the Filipinos and it has been part of the lifestyle of everyone of
us.

B. Economic Benefits and Externalities of the Business

Local businesses have been a staple of economies all around the world ever since people
first began trading for goods and services. Economically, local businesses provide many
advantages to the economy where they operate. Because of their advantages, it is important to
patronize local businesses whenever possible to help preserve the local economy in the
community. One major advantage of local businesses to the local economy is that they typically
employ a wide variety of supporting services that must also be obtained locally. Another
advantage of local businesses is that more of the money spent at a local business stays in the
local area. This provides a huge boost to other local businesses, workers and families in the
local area. (Writing, 2018)

Industries are linked to each other when one industry buys from another to produce its own
products. Each industry in turn makes purchases from a different mix of other industries, and
so on. Employees in all industries extend the economic impact when they spend their earnings.
Thus, economic activity started by the baking industry generates output and jobs in other
industries.

Operating a bakery can be a difficult enterprise with startup equipment costs, production
deadlines, adhering to safety and maintenance regulations and heavy local competition for
customers. However, there are some key benefits of running a bakery. You have control over
a retail business in which you can develop a consistent customer base and expand when the
time is right. One of the pros of running a bakery is you have control on the products you
provide and their amounts. You have endless option since you can manipulate the variety of
baked goods you can produce. Overtime, you can experiment or make adjustments to your
baking, create new recipes and specialize the making of baked goods. The bakery business
offers the potential for great creativity.

The bakery business has long been considered recession proof. This is based on the fact
that people have to eat and a large number of persons enjoy and are willing to pay for fresh
products. Baked items are comfort foods that can be prepared as very nutritious and tasty. You
will likely be able to attract customers and establish repeat business in your local area so that
you can sustain your venture. (Mooney, 2018)

A benefit of running a bakery is that you can often expand as the business as needed.
Sometimes there is the opportunity to move into a larger area or to add on to your present
facility. Even if you do not enlarge the physical size of your bakery, you often can increase the
number of different products you offer and the amounts you bake in a session. Careful
monitoring of sales and considering the prices of ingredients are critical in determining if or
when to expand. The bakery business provides its employees with specific defined roles. The
bakery operation needs to be structured so that each employee has a clearly defined position.
The advantage of these easily defined roles is that everyone knows what they are responsible
for, and the manager can supervise largely based on this.

In this study, the researchers have recognized that the externalities of A-more Bakery can
indeed help the society. Externalities show how a certain action of a business can affect the
business through positive and negative externalities. A-more Bakery possesses the economic
benefits and externalities aforementioned above. Specifically, one good example is from which
they get their employees. They are giving chances to other workers to work on the bakery.
They don’t have a high qualification for the needed employees. They accept individuals even
if they are not college graduates. What they want to have is an employee who has knowledge
about bakery or even a simple thing about baking. They will give trainings to hone the skill of
their workers once they are hired. The owner is also giving feeding programs during her
birthdays which help the beneficiaries chosen. The owner doesn’t tolerate improper
management of their wastes. She makes sure to always let the government wastes collector to
collect their daily wastes. It gives benefit to the society because they are not just lessening the
wastes but are properly disposing it. Through it, they help in reducing societal problems that
may cause disaster and harm in the future if not well taken care of. The shop is also open for
24 hours with primary goal to let the customers buy even on the most impossible time or in
anytime to be exact. Thus, they are accessible and diligently heed to the needs of the
community. They also have different kinds of “pandesal” (example: “malunggay pandesal”)
which also give nutrients and promote healthy lifestyle to the members of the society. The
variety of bread is also beneficial to the society for members of it will have different choices
that will suit their different preferences. Baked goods usually serve as a breakfast and for us
Filipinos, it is the most important meal for the day which will help us get through our daily
work and activities.
 IV. CONCLUSION AND RECOMMENDATION

A. Conclusion

The A-more Bakery with its accessible location is a successful business that has been
around for a long time and makes a good impact on the community it is in. The bakery
manages to earn their desired profit with the employees being paid a salary enough to
support themselves or their families. A-more Bakery started its operations in 1986 by
selling on the streets of Pilar, Las Pinas City. The business started with a minimum capital
yet turned into a successful local business that are beneficial to the members of the society.
They have innovated different baking recipes and are continuously providing tasty and
healthy baked products to the community.

Baking industry has grown over the last century in the Philippines, from a relatively
small industry to a large, popular industry. Initially and up until today, the industry featured
mainly independent bakeries that serviced cities and towns and provided employment to
the local people. A-more Bakery is a manifestation of this success in the baking industry.
Nowadays, chain bakeries have increased the number of bakeries in the Philippines and
have also lowered the prices of bakery products. Due to the increased demand for bakery
products from the growing population in the Philippines, the baking industry has grown,
leading to it providing greater employment opportunities both in the bakeries and
connected sectors.

According to research, most countries with developed economies, as well as a number

of developing countries, have strong bakery industries. A-more Bakery provides necessities
to the population of its local community in terms of bread and cake products. This can be
a manifestation that the baking industry is contributing to our economic development and
maybe someday, may lead to the success of the Philippines becoming one of the leading
countries in producing baked goods.

A-more Bakery requires bakers whom they’ll train to be skilled, as well as other
employees to serve customers, meaning the industry provides significant employment
opportunities. Many people in their teens, adult and even senior citizens take up
apprenticeships in bakeries to learn the trade.
 The study was able to know how A-more Bakery can affect its society even at the
slightest thing. The externalities of a business are not always obvious or quite visible not
unless you will dig deeper on the said topic. On the business that we have chosen, A-more
Bakery has been established long time ago and having the sense of reputation on the baking
business, they have contributed on the society due to the externalities of its business. The
A-more Bakery has also established a good relationship of the owner and its employees.
Due to different benefits they get from working, note that the benefits are not deducted
from their salary, they maintained a stable working environment. Overall, A-more Bakery
has made a great impact from the day it was established until now. A business won’t last
even a couple of months nor year if it is not being run by a good owner and is also damaging
the process on society or doesn’t give any contribution to it. A-more Bakery has made way
to connect the society and business even if they are not aware that it is happening. Due to
their externalities, they have established good reputation on the society itself for it is
helping and creating such great impact to the community.

B. Recommendations

The researchers are satisfied in the results of this study. They have proved that indeed
the A-more Bakery has made great impact to its society. Though we have analyzed great
feedbacks in knowing their externalities, there are still things that the researchers want to
recommend.

It is true that they are the leading bakery in their area but it seems that they lack
marketing strategies like promoting. It is good that they have signages about their business
but it would be better if they would think better and creative ways of promoting their
products. They are using traditional methods in operating their business but we are living
in a modernizing world. Therefore, we need to be dynamic and have the ability to adapt to
change and get along to this fast-phased world.

The business conduct feeding programs more frequently to give back to the society.
Even though its main purpose is to help in the welfare of the society, it can also boost their
reputational standing. People knowing that the business is doing good deed and are run by
good people, they will be attracted more to patronize their products. With that, great
reputation can be established.
 To promote a friendlier customer service, we recommend that the owner give regular
trainings on enhancing good customer service. The owner may give quarterly performance
appraisal to those who excelled in customer service and performed their duties diligently
and be also given corresponding salary increase. This will motivate the employees to
perform better on their given task daily. This would also be a marketing strategy for
customers will always comeback to a business that treats them well.
 V. REFERENCES AND APPENDIX

APPENDIX A – Interview Questionnaire

1. How much is your capital? Where did it come from?

2. How many employees do you have in your business?
3. When you get your materials? (Who is/are your suppliers?)
4. Where do you get your employees? How do you hire them? (Qualifications)
5. How much is the basic salary of your employees?
6. Do you employees have union?
7. Do your business have a human resources department?
8. Explain the organizational structure of your business.
9. Do you give trainings for your employees? If yes, do you to provide them?
10. What are your market strategies?
11. Is the competition in your business stiff in your community?
12. How do you manage your wastes?
13. Why did you choose this type of business?
14. Approximately, how many customers do you get each day? How much do you earn each
day?
15. Is your business open 24/7?
16. How many branches do you have currently? Do you have other businesses aside from
this?
17. Besides from your main products/service, what are your other amenities?
18. Do you take part in the welfare activities in your community?
19. What benefits do you give your employees?
20. What is the primary help of the business to the customer?
21. Have you received complaints from your neighborhood? (How did you address the
complaints?)
APPENDIX B – Picture of the Business

REFERENCES

Mooney, Lisa. (2018). The Pros of Running a Bakery. Small Business. Chron.

Ortiguero, Romsanne. (2018). Baking success through breads. Press Reader.

Writing, Alexis. (2018). What Are the Benefits of Businesses for the Local Economy? Small
Business. Chron.