1

AWARENESS ON MANAGEMENT STRATEGIES TOWARDS

PROFITABILITY OF SELECTED FOOD STALL
OWNERS IN ALFONSO, CAVITE
S.Y. 2017-2018

Aubrey Miles M. Yanela

Jezabel M. Vidal
Judy Ann Cleer E. Olaguer
Donna Lynn L. Sy
Lexter A. Alegre
Ferdie E. Fenol

A Research Project submitted to the faculty of Senior High School Department of

Lucsuhin National High School in partial fulfillment of the requirements for the
graduation with the Track and Strand, General Academic Strand with the contribution
No. . Prepared under the supervision of Alma D. Acuῆa.

INTRODUCTION
Food stall is ready-to-eat food or drink sold in a street or other public place, such

as a market or fair, by a vendor, open from a portable food booth, food cart or food truck.

Most food stall is also classed as both finger food and fast food, and are cheaper on

average than restaurants meals. Food stall is cheap and easy to come by and also helps

people to meet their basic energy and nutritional needs. Changing lifestyle and family

structures have meant changing eating habits and this has led to the increased popularity

of food stall. In addition to being significant source of food for the urban dweller, food

stall has also in recent years emerged as a tourist attraction. Some visitor come to

immerse themselves with the culture of the Philippine, and one good way to do this is to
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have a taste of Philippine food stall. Philippine food stall, also known as “Pagkaing Kalye

in Filipino” is a wide variety of inexpensive cuisine that you can buy from vendors or

peddlers on the street. Food is an important part of Filipino culture, and the carts that

often line the streets of the cities are a great way to snack like a native. Cooking

Philippine street food mainly involves grilling, frying and steaming, while others simply

requires mixing of ingredients to prepare. There are also drinks sold on the street or what

we call “mga palamig” like buko, gulaman, gulaman with milk and many flavoured

juices. Many people enjoyed eating this kind of food because it is very quick to serve and

affordable. But sometimes food stall or street food can cause harm to our health as well

as depending on how the vendors prepare their product. Every food stall owners always

think on what they need to do in their business, something different that other

competitors don’t have. Strategies is one of the most important thing when it comes to

business, they want to achieve their certain objectives and to get high profit and also to

get a good feedback from their customers. Strategies can help to achieve the decision on

how to fit the product, pricing, and the ambiance of the place and to determine what

effective practices that they can use to be more powerful to the other owners of food stall.

Because of demand of many people, the speed, uniformity and low cost, the food

products are often made with ingredients formulated to achieve a certain flavour or

consistency and to preserve freshness. The food has also a trouble when it comes to

unhealthy or high fat content, no new variety of foods, and lack of information about the

food that they sell. But despite of that the owners think an accurate idea to obtain their

certain goals. The success of their food stall can be known to the quality of food,

advertisings and properly trained staff. To maintain their competitiveness to their

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business they are giving promotions, like if you buy something you have a free gift items.

In the Angel’s Burger food stall they are selling “buy one take one” burger for the

customer to be satisfied and stick to the store. When people earn more money they really

love to spend it, and one of their wants is to buy a food from food stall or buy a street

food with affordable price.

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Statement of the Problem

This study find out the awareness of management strategies towards profitability

of selected food stall owners of Alfonso Cavite.

1. What is the profile of the respondents in the term of the following?

• Gender

• Age, and

• Year of service to the business?

2. What are the strategies that the food stall owners use to grow their business?

3. What are the problems encountered and the solution made by selected food stall

owners in Alfonso Cavite?

Objectives of the Study

Generally, the study aimed to determine the food stall owner’s awareness through the

management strategies that they use towards profitability the study aimed to;

1. determine the profile of the respondents in the terms of their

 gender,

 age and,

 The year of service in the business.

2. determine the strategies that the food stall owners use to grow their business.

3. find out the problems encountered and the solution made by selected food stall

owners in Alfonso Cavite.

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Significance of the Study

This study can help the following;

Owner. This can help the owner for successful on their fast food chains and to be

recognized by people. And also to think about different strategies that they can use in

their business.

Community. To be aware of what is happening around them. And to have another way

or idea on handling the business. And also to promote some programs and activities that

will help the owners to increase more profit.

Future Researchers. They can get enough information and ideas to conduct these related

studies to this research.

Scope and Limitation of the Study

The findings suggests on all about on how they can use the management strategies

as owner in their business. And also provide some evidence about the two variables

which are management strategies and profitability. This study will discuss about

strategies that the owner use to make their business profitable. The data used in analyse

were based on the owners answer that shown in the Chapter IV on the discussion. It will

focus more on the data which came from selected food stall. The questionnaire were only

given to the owners of Angels Burger, Frank’s burger and Minute burger, Master Siomai,

Kerrimo, in Alfonso, Cavite.

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Time and Place of the Study

This study was conducted to the selected owners of food stall in Alfonso Cavite

(S.Y. 2017-2018). This study was focused on the management strategies that the owner

use and the profits that they earn from their business.

Theoretical Framework

The study was anchored on Theory of Profitability.

According to (Shawn Grimsley 1997), Profitability is the ability of a business to

earn a profit. A profit is what is left of the revenue a business generates after it pays all

expenses directly related to the generations of the revenue, such as producing a product,

and other expenses related to the conduct of the business activities. Profit is an absolute

number determined by the amount of income or revenue above and beyond the costs or

expenses a company incurs. It is calculated as total revenue minus total expenses and

appears on a company’s income statement. No matter the size or scope of the business or

the industry in which it operates, a company’s objective is always to make it profit.

Profitability is closely related to profit, but it is the metric used to determine the scope of

a company’s profit in relation to the size of the business. Profitability is a measurement of

efficiency-and ultimately its success or failure. It is expressed as a relative, not an

absolute, amount. Profitability can further be defined as the ability of a business to

produce a return on an investment based on its resources in comparison with an

alternative investment. Although a company can realize a profit, this does not necessarily

mean that the company is profitable.

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According to Shawn Grimsley the objectives of every businesses is to make profit

even it is success or failure. It is the ability to produce money by the use of your own

originality and skill, and also how good and bad you are in handling your company. It

includes your income and your expenses to your company. It is important that you know

how to make profit to your business, so you can grow and run your business successfully

and also to build another branches of your business in other place.

Conceptual Framework

FRAME 1 FRAME 2
Independent Variable Dependent Variable

Management Strategies use Profitability that the owners

by the owners of Food Stall. earn with their Food Stall.

Conceptual Framework of the study

This model shows the variables of the study which are the independent (cause)

and dependent (effect) variables. The first figure shows the management strategies that

the owners use for their food stall. The owners of the selected food stall use management

strategies to grow their business, to obtain their certain objectives, to get a good feedback

from their customer and also to earn more profit. The second figure shows the owners

profitability by the use of owners’ management strategies.

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Hypothesis

Null Hypothesis-Ho: There is no significant relationship between the management

strategies and profitability.

Alternative Hypothesis-Hi(Ha): There is a significant relationship between

management strategies and profitability.

Definition of Terms

Strategy. A careful plan or method for achieving a particular goal usually over a long

period of time, it is the skill of making or carrying out plans to achieve a goal.(Meriam

Webster) Operationally, the researchers defined that strategy is thinking for different

ideas to manage the business and also by learning different experienced.

Profitability. Making money (producing good or helpful results or effects.(Meriam

Webster)

Profits. Money that is made in a business, through investing, etc., after all the costs and

expenses are paid.(Meriam Webster). Operationally, the researchers defined that

profitability or profits are the result of how the business owners handling their business.

Awareness. Knowing that something (such as a situation, condition or problem) exists.

Awareness is knowing and understanding a lot about what is happening around you.

(Meriam Webster). Operationally, the researchers defined that awareness is knowing

about something or situation that happen or exist.

Management. The act or skill of controlling and making decisions about a business,

departments sports and etc. It is the process of deciding how to use something.(Meriam

Webster). Operationally, researchers defined that management is how you handling or

controlling the business in a unique way.

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REVIEW OF RELATED LITERATURE

This chapter presents the review of related literature done by the researchers after

thorough and in-depth search. All gathered materials focus on awareness, management,

management strategies, food stall and profitability. Awareness is discussed on the first

part followed by strategies, strategic management, profitability, and lastly, management

supported by researchers to better understand these topics.

Awareness

Patricia V.A., and Ariynn I.G., (1998) in their article, “Microbial Hazards in

Street Vended Fish Balls in the Philippines”, revealed that fish ball street vendors have

already became permanent fixtures in the main commercial street of the Philippines,

particularly in Manila. The study identified some microbial hazards associated with the

street vending operations of fish ball and its different sources. They were found to

contain detectable levels of coliforms and salmonella. These levels of microbial

contamination in the sources increased over the 6 hours vending operation. The hands of

fish ball vendors were also shown to contain increasing amount of microbial

contaminants throughout the vending operation.

Alice Escalante de Cruz, (2004) in her report “A Lifeline foe Street Food

Vending”, studied about Asian-Pacific region in countries – Bangladesh, India,

Philippines and Vietnam. The report examined the efficacy of existing policies and to

develop the welfare of street food vendors. Vendors of street food provide affordable

food for all classes of the society. Street foods can be the least expensive source of a

nutritionally balanced meal away from home.

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Holy A. Von, (2004) in his article “Street Food Vending” stated that, sales of

street vended foods are increasing in several countries and offer stakeholders in the

industry a wide range of economic benefits. This article discuss potential public health

problems that may be associated with this trend. Outbreaks of food borne diseases

connected to street food consumption are considered together with studies into the safety

of street foods and attempts to regulate street vendors in Durban, South Africa.

Subratty A.B., Beechary P., and Chan-Sun M., (2004) in their article “A Survey

of Hygiene Practices Among Food Vendors in Rural Areas in Mauritius” reveals that

food vendors were quite aware of the appropriate hygienic conditions required for

handling and preparing foods. It was found that the majority of vendors did not put their

knowledge into practice, as they perceived that their products were of relatively low risk

to consumers. For over half of the vendor’s households, the main income was derived

from street food vending. It is concluded that further health education is required for food

vendors.

Two different current definitions of awareness are contrasted. One definition, use

in recent masked- prime studies, is objective and equates awareness with the ability to

make forced choice decisions above a chance level of performance (Philip Merichel

2013). The second definition, proposed by (Henley 1984), is subjective and simply

equates awareness with self-reports indicating that an observer “consciously sees” a

stimulus. It is concluded the better objective measure of awareness is needed to

distinguish the subjective states of “seeing” and “not seeing” a stimulus.

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Management

In the perspective of (Peter Drucker 1909-2005), management is often included as

a factor of production along with machine materials, and money. According to the

management the basic tasks of management includes both marketing and innovation.

Practice of modern management originates from the 16 th century study of law efficiency

and failures of certain enterprises, management consist of the interlocking functions of

creating corporate policy and organizing, planning, controlling and directing organization

resources in order to achieve the objectives of the policy.

The management concept which separates company’s within the same industry

with similar business models and similar strategy combination. A strategic group can be

form anytime time of business and depending on the industry, are defined within a

dimensional construct. Strategies will often display the market position of each

competing company on a two dimensional grid. (Jeffrey Glen 2017).

According to Dyke, Fischer, and Reuben (1992), management experience may be

a significant factor in achieving success or successful performance in the small business

environment. It stated that “would-be business owners should be concerned to gain

related industry, management, and start-up experience… regardless the type of industry

in which they plan to operate” (p.86). It was also noted, however, that while experience

was a significant factor, it could vary by industry in importance.

Strategies

As Caves & Ghemawat (1984) point out, an essential element of strategy is the set

of “committed choices” made by management. The notion of business model has been
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used by the strategy scholars to refer to “the logic of the firm, the way it operates and

how it creates value for its stakeholders.” On the surface, this notion appears to be similar

to that of strategy. We present a conceptual framework to separate and relate business

model and strategy. Business model, we argue, is a reflection of the firm’s realized

strategy. We find that in simple competitive situations there is a one-to-one mapping

between strategy and business model, which makes it difficult to separate the two

notions. Strategy is often defined as a contingent plan of action designed to achieve a

particular goal.

Similarly, (Porter 1996, p. 68) states: “strategy is the creation of a unique and

valuable position, involving a different set of activities” (emphasis added). The word

“creation” implies choice of the particular way in which the firms competes. Moreover,

the resulting activity system is “created” is a reflection of the firm’s strategy. Strategy

proper, however, is not the activity system itself but the creation of the activity System

Consistent with this notion, strategy refers, in our development, contingent plan as to

what business model to use. Choosing a particular business model means choosing a

particular way to compete, a particular logic of the firm, a particular way to operate and

to create value of the firm’s stakeholders.

In a different approach of (Fred Nickols 2016), strategy is a word with many

meanings and all of them are relevant and useful to those who are charged with setting

strategy for their corporations, businesses, or organizations. Alfred D. Chandler, Jr.,

author of Strategy and Structure (1962), the classic study of the relationship between an

organization’s structure and its strategy, defined strategy as “the determination of the
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basic long-term goals and objectives of an enterprise, and the adoption of courses of

action and the allocation of resources for carrying out these goals.”

Additionally to (George Steiner (p.348 1979), a professor of management and one

of the founders of The California Management Review, is generally considered a key

figure in the origins and development of strategic planning. Strategy is that which top

management does that is of great importance to the organization. Strategy refers to basic

directional decisions, that is, to purposes and missions. Strategy consists of the important

actions necessary to realize these directions. 4. Strategy answers the question: What

should the organization be doing? Strategy answers the question: What are the ends we

seek and how should we achieve them?

According to (Kenneth Andrews 1980), compare that "Corporate strategy is the

pattern of decisions in a company that determines and reveals its objectives, purposes, or

goals, produces the principal policies and plans for achieving those goals, and defines the

range of business the company is to pursue, the kind of economic and human

organization it is or intends to be, and the nature of the economic and non-economic

contribution it intends to make to its shareholders, employees, customers, and

communities (p.18)." Andrew’s definition obviously anticipates Mintzberg’s attention to

pattern, plan, and perspective. Andrews also draws a distinction between "corporate

strategy," which determines the businesses in which a company will compete, and

"business strategy," which defines the basis of competition for a given business. Thus, he

also anticipated "position" as a form of strategy. Strategy as the basis for competition

brings us to another Harvard Business School professor, Michael Porter, the undisputed

guru of competitive strategy. (Michael Porter 1996) Porter argues that competitive
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strategy is "about being different." He adds, "It means deliberately choosing a different

set of activities to deliver a unique mix of value (p.64)." In short, Porter argues that

strategy is about competitive position, about differentiating yourself in the eyes of the

customer, about adding value through a mix of activities different from those used by

competitors.

According to (Henry Mintzberg 1994) in his book “The Rise and Fall of Strategic

Planning” points out that people use "strategy" in several different ways, the most

common being these four 1. Strategy is a plan, a "how," a means of getting from here to

there. 2. Strategy is a pattern in actions over time; for example, a company that regularly

markets very expensive products is using a "high end" strategy. 3. Strategy is position;

that is, it reflects decisions to offer particular products or services in particular markets.

4. Strategy is perspective, that is, vision and direction. Mintzberg argues that strategy

emerges over time as intentions collide with and accommodate a changing reality. Thus,

one might start with a perspective and conclude that it calls for a certain position, which

is to be achieved by way of a carefully crafted plan, with the eventual outcome and

strategy reflected in a pattern evident in decisions and actions over time. This pattern in

decisions and actions defines what Mintzberg called "realized" or emergent strategy.

Strategic Management

According to Schendel & Hofer, (1978) strategic management is a process that

guides how the basic work of the organization is approached, ensures the continuous

renewal and growth of the firm, and more particularly, provides a context for developing

and implementing the strategy that drives the firm’s operations. The formulation of plans

for the effective management of external opportunities and threats in light of a company’s
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internal strengths and weaknesses is a major component of strategic management. This

planning component includes defining the company’s mission, specifying achievable

objectives, developing strategies, and setting policy guidelines.

Management issues are fundamental to any organization: How do we plan to get things

done, organize the company to be efficient and effective, lead and motivate employees,

and put in place controls to make sure our plans are followed and our goals are met?

Good management is basic to starting a business, growing a business, and maintaining a

business once it has achieved some measure of success. Operations management is an

area of management concerned with overseeing, designing, and controlling the process of

production and redesigning business operations in the production of goods or services. It

involves the responsibility of ensuring that business operations are efficient in terms of

using as few resources as needed, and effective in terms of requirements. Obviously, a

great deal of strategic thinking must go into developing a strategic plan and, once

developed, a great deal of strategic management is required to bring its aims to fruition.

But, as several authors have pointed out, the objective is indeed to think and manage

strategically, not to blindly engage in strategic planning for the sake of strategic planning.

However, when it comes to specifying the substance of the distinctions among strategic

thinking, strategic planning and strategic management, all authors are noticeably reticent.

So, we will take those distinctions as amounting to a well-meant caution against

confusing the form of strategic planning with its substance.

Strategic Planning

The strategic planning process is defined as the set of human interactions, formal

and informal, that take place in the course of generating a strategic plan (Lyles and Lenz,
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1982). For the purpose of the discussion below, the focus will be on corporate-level

planning (Lorange and Vancil, 1976).

The strategic planning process serves both an instrumental and symbolic function.

Symbolically, the strategic planning process serves to build consensus in the organization

by providing shorthand expressions (Bresser and Bishop, 1983) or simplifying categories

(Starbuck, 1983) for communication and understanding. For example, the designation of

a strategic business unit (SBU) as a ‘cash cow’ or a ‘dog’ establishes expectations about

the likely performance and contribution of these groups, significantly affecting

interactions between SBU members (Dutton, Fahey and Narayanan, 1983). The process

has ritualistic elements, i.e. patterns of meetings, formal procedures and communication

programs that reinforce a sense of pervasive rationality and control in the organization

(Ackoff, 1981).

According to Cyert and March (1963) at the instrumental level the strategic

planning process serves as a type of performance program – absorbing uncertainty by

reducing the information load facing decision-makers (Boulton et al., 1982). Though the

planning process, information critical to the organization’s survival is received (Lenz and

Lyles, 1983) and interpreted (Draft and Weick, 1984).

According to French, Kelly and Harrison (2004) strategic planning and

assessment of its value, remains an important and relevant research topic for those

interested in organizational and management development. Joel Ross and Michael Kami

are of the opinion (as cited in David, 2013) that “Without a strategy, an organization is

like a ship, without a rudder going around in circles. It’s like a tramp; it has no place to
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go”. In management “Ansoff” introduced the concept of “strategic planning” in early 70s

(Feurer & Chaharbaghi, 1997; Mohamed, Ann, & Yee, 2010).

According to Alaka, Tijani, & Abass (2011), strategic planning therefore bridges

the gap between where we are, and where we want to go.

According to Mohamed (2010), the first step of strategic planning is considered as

the development of a “vision statement”. It is a statement of an organization and gives

purpose and direction to the organization. Vision serves as a motivator for the people

inside and outside the organization. The vision statement refers to the future of an

organization. A vision is the foundation of the firm’s mission statement and is a picture of

what a firm wants to be (Hitt, Ireland, & Hoskisson, 2011).

Profitability

According to (Dr. Monica Tulsian 2014) the main purpose of a business unit is to

make profit. The profitability analysis is done to throw light on the current operating

performance and efficiency of business firms. It should be duly noted that net income

figure alone is not very helpful in determining the efficiency and performance of the

business firms unless it is related to some other figures such as sales, cost of goods sold,

operating expenses, capital invested etc. The word profitability is composed of two

words, namely, profit and ability. The term profit has been explained above and the term

ability indicates the power of a business entity to earn profits. To achieved some measure

of success.

Profitability is ability of a company to use it resources to generate revenues in

excess of its expenses. In other words, this is a company’s capability of generating profits
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from its operations. Profitability is one four buildings blocks for analyzing financial

statement and company performance as a whole. The other are efficiency, solvency, and

market prospects. Investor, creditors and managers used this key concept to analyze how

well accompany is doing and the future potential it could have if operations where

managed properly. The two key aspects of profitability are revenues and expenses

revenues are the business income. This is the amount of money earning from customers

by selling products or providing services, resources, like cash, are used to pay for

expenses like employee payroll, rent, utilities, and other necessities in the production

process. Profitability looks at the relationship between the revenues and expenses to see

how well a company is performing and that future potential growth a company might

have. (Melissa Horton 2015).

According to the Business Dictionary (1994), profitability is the ability of a firm

to generate net income on a consistent basis.

According to Lalith (2009) she examines the use and influence of leverage in a

cross section of quoted companies in Sri Lanka and stated that profitability is reliably

negatively complemented to leverage suggesting that more profitable firms tend to use

less leverage. On the other hand, the trade-off, signaling, and agency theories expect a

positive relationship between profitability and leverage.

As Weston & Brigham (2006) rightly notes “to the financial management profit is

the test of efficiency and a measure of control, to the owners a measure of the worth of

their investment, to the creditors the margin of safety, to the government a measure of

taxable capacity and a basis of legislative action and to the country profit is an index of

economic progress, national income generated and the rise in the standard of living”,
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while profitability is an outcome of profit. In other words, no profit drives towards

profitability. Firms having same amount of profit may vary in terms of profitability. That

is why Khan et al., (2003), has rightly stated, “Profit in two separate business concern

may be identical, yet, many a times and it usually happens that their profitability varies

when measured in terms of size of investment”.

Pandey (1980) defined the profitability as the ability of a business, whereas it

interprets the term profit in relation to other elements. A financial benefit is realized

when the amount of revenue gained from business activity exceeds the expenses. It is

necessary to examine the determinants of profitability to understand how companies

finance their operations. A financial benefit is realized when the amount of revenue

gained from business activity exceeds the expenses, costs and taxes needed to sustain the

activity. Profitability analysis classifies measures and assesses the performance of the

company in terms of the profits it earns either in relation to the shareholders investment

or capital employed in the business or in relation to sales, profit (or loss). Given that most

entrepreneurs invest in order to make a return, the profit earned by a business can be used

to measure the success of that investment.

Hermanson (1989) defines that profitability is the organizations’ ability to

generate income and its inability to generate income is a loss. He further asserts that if the

income generated is greater than the input cost, that is simply profitability but if the

incomes are less than the input cost, it reflects poor performance.

According to Geringer and Hebert (1991), empirical evidence suggests that

survival correlates positively with satisfaction measures of financial performance.

Previous research suggests that for a firm’s capacity to gain profit is highly correlated to
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the profitability and attractiveness of the industry operation (Elango&Sambharya, 2004).

A company’s profitability can be amplified through multinational operations, rents

produced by proprietary assets that are developed at home and then used internationally

(Geringer et. al., 1989; Bergsten et. al., 1987).

Marketing

According to Kotler and Armstrong (2004), marketing is a societal and

managerial process by which individuals and groups obtain what they need and want

through creating and exchanging products and values with others. Marketing is all about

satisfying the needs and wants of the people. Marketing management, on the other hand,

is the process of satisfying product demand and building profitable relationship with the

market by providing them with products with superior value and satisfaction. We need

marketing strategies to fulfill this, if the firms want to survive in the competitive world of

business.

Marketing concept is the marketing management philosophy that holds that achieving

organizational goals depend on determining the needs and wants of target markets and

delivering the desired satisfaction more effectively and efficiently than the competitors

( Kotler and Armstrong, 2004).

Marketing planning is the systematic application of current marketing resources

carefully allocated overtime in order to promptly achieve desired marketing objectives.

Marketing planning continuously monitors, evaluates and measures the many external

and internal influences in the market place on its ability to achieve acceptable profitable

sales expectations. Furthermore, marketing planning provides an understanding and sense

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of involvement throughout the organization to the smallest sections of the particular

competitive instance that an organization intends to take in the short term and long term

prospects of achieving objectives. In preparing the strategic marketing plan, a company’s

marketing mix of activities cannot be isolated from other business functional areas as

production, finance, purchasing, research and development, human resource; legal and

other units, because the marketing planning process should be based on corporate

planning system.

Street Food or Food Stall

Street food vendors may be located outdoors or under a roof which is easily

accessible from the street. Urban population growth has stimulated a rise in the number

of street food vendors in many cities throughout the world. Street food vendors are also

known as hawkers or sellers. Migration from rural areas to urban centers has created a

daily need among many working people to eat outside the home. Demand for relatively

inexpensive, ready-to-eat food has increased as people, especially women, have less time

to prepare meals Winarno & Allain, (2000).

Street foods are ready-to-eat foods prepared and/or sold by vendors and hawkers,

especially in streets and other similar public places (Codex, 1999). The other public

places include schools, markets and motor parks (Muleta and Ashenafi, 2001). A street

food vendor is broadly defined as a person who offers foods for sale to the public without

a permanent built up structure but with a temporary static structure or mobile stall-head

load/wheel-barrow/truck (Janie and Marie, 2010). Street- vended foods provide a source

of inexpensive, convenient and often nutritious food for urban and rural poor; a source of

attractive and varied food for tourists and the economically advantaged; a major source of
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income for a vast number of persons, particularly women; and a chance for self-

employment and the opportunity to develop business skills with low capital investment

(Codex, 1999).

The growing street food sector in low-income countries offers easy access to

inexpensive food as well as new job opportunities for urban residents. While this

development is positive in many ways, it also presents new public health challenges for

the urban population. Safe food hygiene is difficult to practice at street level, and

outbreaks of diarrheal diseases have been linked to street food (Rheinländer et al, 2008).

The innumerable street food industries involve huge amounts of capital and millions of

people yet they are often not given the official recognition they deserve. In many

countries the street food industry is merely tolerated. Because the industry is spread over

a myriad of locations and is not systematically coordinated in any way, it is common for

clusters of vendors to be considered impediments to urban planning and hazards to public

health. The negative attitude of officials toward street food vendors frequently reflects

concerns about poor hygiene and the spread of disease. Lacking staff to enforce rules and

regulations, governments have difficulty monitoring street food enterprises Winarno &

Allain, (2000).

As reported by (Latham 1997), the food industry plays an important role in

developing countries in meeting the food demands of the urban dwellers. Street foods

feed millions of people daily with a wide variety of foods that are relatively cheap and

easily accessible. From the Philippine Street Foods (2015), also known as Pagkaing

Kalye in Filipino, street food is a wide variety of inexpensive cuisine that you can buy

from vendors or peddlers on the streets. It is essentially influenced by other neighboring

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countries’ dishes like Chinese and Japanese, taken to the next level and given a Filipino

twist, though consumers have doubts to street foods due to risks associated with them.

According to Grace P. Perdigon (1986) in his study “Street Vendors of Ready-to-

Eat Food: As a Source of Income and Food for Low Income Groups”, mentioned that the

daily net income of the food vendors ranged from a low P.10 per day to as higher than

P.500 per day. Street vending was found to be a source of family meals. Majority of the

vendors were married. They were income earners and food provider. The vending places

were congested and pothered. The vending operation were assisted by their kin or some

hired workers. The vendors sold food every day of the week, putting in 12 or more hours

of work per day. The working capital was taken from the operator’s personal savings or

sariling sikap.

According to Ma Patrocinio E. de Guzman et al., (1987) in their article “Street

Foods in the Philippines Health, Nutrition, Management and Livelihood Aspects”,

revealed that the initial capital investment of most street food business come from loans

from relatives, friends or money lenders. The daily operating expenses rage from P.10 to

P 1000. The schedule of street food business vary with the size of operation and appeared

to vary with the location of the service and the type of food sold. Some of them operated

24 hours. They appeared to be mostly migrants from the provinces. Simple foods are

served in the street food services. These include fried and boiled snacks and other packed

snacks, beverages soups, ices, native cakes, grilled items, sandwiches, fish, cooked

vegetables, eggs, fruits and bakery products. They prepare the street foods in their homes.

They just transported these to the place or street. They used to serve in china plates with

stainless steel spoons and forks. Glass tumblers were used for serving water. Use of
 24

plastic plates and tumblers was not found. Storing of foods was not commonly done in

street food stalls. Street foods were handled with bare hands and unclean utensils, serving

of food directly from the cooking pot, using of plastic wrappers and improper grooming

among food handlers were observed. Cleanliness of food preparation and service area

were also not also not properly maintained.

According to Rita Hutabarat L.S., (1994) in her article “Street Foods in Bangkok

– The Nutritional Contribution and the Contaminants Content of Street Foods”, revealed

that Bangkok has 20,243 registered street vendors. About 30 percent of all the street

vendors sold prepared food. Street food vendors outnumber other-than-street vendors

who sell such things as food ingredients. Socio-economic conditions have made vending

an essential part of the city’s life. The problems commonly associated with street vending

relate to cleanliness of the city environs and the orderliness of the city’s activities. The

location of vending activities near to universities, school, and busy locations like

shopping and market areas, places of recreation and transportation terminals tend to

create problems of cleanliness. The main types of foods are snacks, meals and beverages.

The ambulatory category of vendor had equipment and facilities that were usually of

small scale. Food was most usually sold on wooden bowls or plates, aluminum plates and

bowls, and traditional earthenware. This category of vendor carried washing water in a

small plastic bucket. There are vendors having a movable rig, insulated box for ice

storage, a stove for heating food, and a washing basin. Some of them are having cooking

utensils, tables and benches as well as having serving facilities.

According to Abdussalam M. (1996) in his report “Essential Safety Requirements

for Street Vended Foods”, studied about in the hygienic handling of street vended foods
 25

and the attention to containers of pastes, sauces and other food activities, monitoring

them for pathogen growth and visible deterioration of water used for drinking and

preparation of beverages. Water used for this purpose should be potable water. Water

used for washing utensils, food and hands should be safe and should not be reused. Ice to

be used in beverages and food should be prepared with special attention to cleanliness.

Preparing and processing of food are to avoid direct and indirect contact between raw and

cooked or prepared food which will be consumed without further heating. The vehicle

used for transport should be clean and should not carry animals. Prepared food should be

kept at a temperature of at least 60 ℃ to prevent microbial growth. Handling of cooked

foods should be kept to a minimum to reduce the likelihood of introducing pathogens.

Vending units should be designed and constructed so that they are easily cleaned and

maintained. Equipment, utensils and other containers should be made of materials which

do not release toxin or hazardous chemicals into food and beverages. Raw meat, poultry

or fish should be handled carefully; their preparation should be carried out using separate

equipment and utensils. Food handlers should be educated to wear clean and proper

clothing according to prevailing local standards. Food handlers should wash their hands

with soap and water after engaging in any activities that are likely to introduce biological,

chemical or physical hazards. Food should be prepared and sold in clean well-lit place

protected from strong sun, dust, rain, wind.

 26

Synthesis

Subratty A.B., Beechary P., and Chan-Sun M., (2004) in their article “A Survey

of Hygiene Practices Among Food Vendors in Rural Areas in Mauritius” reveals that

food vendors were quite aware of the appropriate hygienic conditions required for

handling and preparing foods. It was found that the majority of vendors did not put their

knowledge into practice, as they perceived that their products were of relatively low risk

to consumers. For over half of the vendor’s households, the main income was derived

from street food vending. It is concluded that further health education is required for food

vendors.

In the perspective of (Peter Drucker 1909-2005), management is often included as

a factor of production along with machine materials, and money. According to the

management the basic tasks of management includes both marketing and innovation.

Practice of modern management originates from the 16th century study of law efficiency

and failures of certain enterprises, management consist of the interlocking functions of

creating corporate policy and organizing, planning, controlling and directing organization

resources in order to achieve the objectives of the policy.

According to Dyke, Fischer, and Reuben (1992), management experience may be

a significant factor in achieving success or successful performance in the small business

environment. It stated that “would-be business owners should be concerned to gain

related industry, management, and start-up experience… regardless the type of industry

in which they plan to operate” (p.86). It was also noted, however, that while experience

was a significant factor, it could vary by industry in importance.

 27

Similarly, (Porter 1996, p. 68) states: “strategy is the creation of a unique and

valuable position, involving a different set of activities” (emphasis added). The word

“creation” implies choice of the particular way in which the firms competes. Moreover,

the resulting activity system is “created” is a reflection of the firm’s strategy. Strategy

proper, however, is not the activity system itself but the creation of the activity System

Consistent with this notion, strategy refers, in our development, contingent plan as to

what business model to use. Choosing a particular business model means choosing a

particular way to compete, a particular logic of the firm, a particular way to operate and

to create value of the firm’s stakeholders.

According to Schendel & Hofer, (1978) strategic management is a process that

guides how the basic work of the organization is approached, ensures the continuous

renewal and growth of the firm, and more particularly, provides a context for developing

and implementing the strategy that drives the firm’s operations. The formulation of plans

for the effective management of external opportunities and threats in light of a company’s

internal strengths and weaknesses is a major component of strategic management. This

planning component includes defining the company’s mission, specifying achievable

objectives, developing strategies, and setting policy guidelines.

Hermanson (1989) defines that profitability is the organizations’ ability to

generate income and its inability to generate income is a loss. He further asserts that if the

income generated is greater than the input cost, that is simply profitability but if the

incomes are less than the input cost, it reflects poor performance.

Street food vendors may be located outdoors or under a roof which is easily

accessible from the street. Urban population growth has stimulated a rise in the number
 28

of street food vendors in many cities throughout the world. Street food vendors are also

known as hawkers or sellers. Migration from rural areas to urban centers has created a

daily need among many working people to eat outside the home. Demand for relatively

inexpensive, ready-to-eat food has increased as people, especially women, have less
 29

METHODOLOGY
This chapter includes the research that was used in the study, the quantitative

research was using in survey questionnaire in order to get the strategies that was use in

Food stall to make profitable. The researcher present the research design, participant of

the study, variables of the study, sampling procedure, research instrument, data gathering

procedures, data processing technique.

Research Design

This study used the quantitative research by using survey questionnaire assessing

the management strategies of food stall owner’s towards profitability. Descriptive method

under the quantitative research was used to gather information about present and existing

condition. The principal aim is to describe the owner situation as it exists at the time of

the study, and to explore the cause of the particular phenomenon.

Respondents of the Study

The respondents of the study were the selected food stall owners of Alfonso

Cavite, during the school year 2017-2018. The selection of the respondents was primarily

based on the owners. The number of the respondents for food stall owners was purposely

assigned by the researcher.

Variables of the Study

The study deals with two variables which is Awareness on Management

Strategies (Independent variable) and Profitability (Dependent variable). Variable 1 is the

management strategies that the owners use to grow their business and to obtain their

certain objectives. Variable 2 is the profitability that the owners earn with their food stall

by the use of management strategies.

 30

Sampling Procedure

The researcher use simple random sampling in order to conduct an answer to a

survey questionnaire. The chosen respondent is the owners of Food Stall in Alfonso,

Cavite to answer the following question that focused on management strategies.

Research Instrument

In this study the researcher used a survey questionnaire in order to determine the

Management Strategies towards Profitability of Food Stall owners of Alfonso Cavite.

This survey questionnaire will help the researchers to determine and analyzed the data

that they needed in their study.

Data Gathering Procedure

Data were gathered by means of questionnaires. The researcher asked permission

from the selected Food Stall owner in Alfonso, Cavite in order to conduct a study. The

researchers will give the questionnaires to the owner with the content of fifteen questions

and the selected food stall owner will answer the questions that focused on management

strategies of food stall owners, they are going to put a check in the box that corresponds

to their best answers that will rate as always sometimes and never.

Data Processing Techniques

In data gathering technique the researchers use survey questionnaire which can

help the researchers to gather accurate and reliable information. The researchers will visit

the establishments of the selected food stall owners and asked for their permission to

allow them to conduct a study that will help them to get an ideas and different strategies

to make their business became more profitable.

 31

RESULTS AND DISCUSSION

This chapter presents the discussion of the profile of the respondents of the

selected food stall owners of Alfonso, Cavite.

Respondents Profile

The food stall owners’ strategies depend on their experience and innovations to

get the attention of the customers. According to Eurofound (2006), identified eight

dimensions of age management, which can be seen as different approaches to reaching

the goals of the (overall) age management strategy: job recruitment, training and lifelong

learning, career development, flexible working time practices, health protection and

promotion and work place design, redeployment, employment exit and the transition to

retirement and comprehensive approaches.

Table 1. Age of the Food Stall Owners in Alfonso, Cavite.

AGE FREQUENCY PERCENTAGE
18-25 3 30
26-33 2 20
34-41 2 20
42-49 2 20
50-55 1 10
Total 10 100

Table 1 shows that three out of ten food stall owner (30%) belonged to the age of

18 to 25; two out of ten (20%) of the respondents belonged to the age of 26 to 33, 34 to

41, 42 to 49; and one out of ten (10%) belonged to the age of 50 to 55.
 32

It is more valuable to know the gender of the selected food stall owners, because

it shows how they handle their business in a unique way and most of us know that there’s

a difference of creativity when it comes to female and male, but we’ll see that gender is

not a hindrance to grow their business. Loscoco et al. (1991), stated that many empirical

studies comparing the business performance by gender at the aggregate level found lower

outcomes in terms of sales, employment, income, profits and growth for women-owned

businesses, the evidence is less clear for profitability related measures.

Table 2. Gender of the Food Stall Owners in Alfonso Cavite.

GENDER FREQUENCY
PERCENTAGE
Female 7 70
Male 3 30
Total 10 100

Table 2 reveals the gender of the food stall owners in Alfonso, Cavite. The result

revealed that almost seven out of ten (70%) were female and 3 out of ten (30%) were

male.
 33

It is important to know the years of existence of the food stall in the business,

because it shows how well they manage their business. It implies that they have a good

service in their business. According to Solomon and Hanson (1983) for a thousand years

business existed only at the fringes of society. Society thought little a people in business,

and people in business expected of society. Profit was their only reward because power,

social status, and even social acceptability were closed to them. But in a time when the

values of the business world largely influence the values of society as a whole and the

possibilities of future generations, the purposes and goals of business need to be

questioned and expanded.

Table 3. Year of the Business of the Food Stall Owners in Alfonso Cavite.
YEARS OF THE BUSINESS FREQUENCY
PERCENTAGE
2 to 12 months 5 50
2 years to 10 years 4 40
11 years to 20 years 0 0
21 years to 30 years 1 10
Total 10 100

Table 3 shows that five out of ten (50%) belonged to the year of the business of 2

to 12 months; four out of ten (40%) belonged to the 2 years to 10 years; zero out of ten

respondents belonged to 11 years to 20 years and one out of ten (10%) belonged to the 21

years to 30 years.
 34

Respondent’s Awareness on Management Strategies

The table reveals that in statement 1 (The food is serve hot and fresh) got 2.8

mean interpreted as always. Statement 2 interpreted as always with a mean of 3.0.

Statement 3 got a mean of 3.0 and interpreted as always. Statement 4 got a mean of 3.0

and interpreted as always. Statement 5 got a mean of 2.9 and interpreted as always.

Statement 6 got a mean of 2.4 and interpreted as always. Statement 7 got a mean of 3.0

and interpreted as always. Statement 8 got a mean of 2.0 and interpreted as sometimes.

Statement 9 got a mean of 3.0 and interpreted as always. Statement 10 got a mean of 3.0

and interpreted as always. Statement 11 got a mean of 2.9 and interpreted as always.

Statement 12 got a mean of 3.0 and interpreted as always. Statement 13 got a mean of 3.0

and interpreted as always. Statement 14 got a mean of 2.8 and interpreted as always.

Statement 15 got a mean of 2.5 and interpreted as always. According to Dyke, Fischer

and Reuben (1992), management experience may be a significant factor in achieving

success or successful performance in the small business environment. It started that

“would-be business owners should be concerned to gain related industry, management,

and start-up experience… regardless the type of industry in which they plan to operate.

The overall mean of the statements is 2.82. It implies that the management strategies

towards profitability are positive.

 35

Table 4. Respondents about Awareness on Management Strategies towards Profitability.

STATEMENT MEAN
INTERPRETATION

1. The food is serve hot and fresh. 2.8 Always

2. The menu board has good variety of 3.0 Always
items and easy to read.
3. The service is excellent. 3.0 Always
4. Proper use of utensils and equipment. 3.0 Always
5. Fast and efficient service in a clean 2.9 Always
environment.
6. Use flyers to promote the product. 2.4 Always
7. The owners are focused in operating 3.0 Always
the business.
8. Show commercials about the 2.0 Sometimes
food you sell.
9. Ensures the continuous development 3.0 Always
and growth of the business.
10. Maintain the efficiency and 3.0 Always
effectiveness of the business.
11. Lead and motivate the employees. 2.9 Always
12. Satisfy the needs and wants 3.0 Always
of the customers.
13. Employees have good attitude. 3.0 Always
14. The products offered are innovative. 2.8 Always
15. Competitiveness to the other food stall. 2.5 Always
Legend:
1.00 – 1.66 = Never
1.67 – 2.33= Sometimes
2.34 – 3.00 =Always

Table 4 shows the management strategies towards profitability. Using the

following ratings scale, 3- Always, 2- Sometimes and 1- Never.

 36

6
Frequency

5
4
3
2
1
0
problems encountered solutions made

Figure 1.Relationship of problems encountered and the solutions made of selected food
stall owners.

Figure 1 shows the relationship of problems encountered and the solutions made

of the selected food stall owners in Alfonso, Cavite. It reveals that the one owner told that

he don’t have any solutions about their problems. The respondents told that their

problems in their business are the complain about their products experiencing out of

stock, getting wrong orders, due to having many customers, there’s a plastic of ice in

their product and lastly, the most problem of their business is the weather, holidays and

vacations.
 37

SUMMARY, CONCLUSION AND RECOMMENDATION

SUMMARY

The study was conducted mainly to determine the management strategies towards

profitability of selected Food stall owners in Alfonso Cavite.

Specifically, it aimed to determine the profile of the respondents; determine the

strategies that the food stall owners use to grow their business; find out the problems

encountered and the solutions made by selected Food stall owners.

The respondents consisted of selected food stall owners in Alfonso Cavite. Data were

obtained using a questionnaire which aimed to determine the management strategies

towards profitability of selected Food stall owners.

Fourteen out of the fifteen positive statements regarding management strategies,

the food stall owners had a response of “Always” towards profitability and one out of

fifteen statements elicited a response of “sometimes”. The overall mean of the statements

is 2.82 which is interpreted as “always”. It implies that the management strategies

towards profitability are positive.

In terms of the Profitability, the selected food stall owners increase their income

when their service is excellent.

Findings revealed that management strategies can increase profitability.

Profitability is the organizations’ ability to generate income and its inability to generate

income is a loss. Hermanson (1989) he further asserts that if the income generated is

greater than the input cost, that is simply profitability but if the incomes are less than the

input cost, it reflects poor performance.

 38

CONCLUSION

The researchers concluded that the selected food stall owners on their

management strategies and profitability are both positive. The solutions made by the

respondents are they are having apology to the customers with a smile and told that it will

never happen again, order more stock of their products, wrote every detail of every

customers’ order and reassure if their order is final, and the that they have no solutions

about holidays, weather and vacations. Therefore, we conclude that if the owners are

excellent in their service the higher the profit they get, but if their service is weak the

lower the profit they get.

RECOMMENDATION

Food stall owners could make an order slip to the customers instead of put a mark on

their orders besides of that fulfilling the needs and wants of the customers can help the

owners improve the service of their business. Having innovations on their business will

help them gain more profits and manage the expenses and net loss/net income of their

business. Food stall owners should elevate their excellence of service, and they could also

follow trends in addition to the attraction of their stalls. They should use management

strategies to improve their profitability.

For future researchers, they can get enough information and ideas to conduct these

related studies to this research.

 39

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