CHAPTER 3: MANAGEMENT/ LEGAL FEASIBILITY STUDY

3.1 Management/ Legal Feasibility Objectives

A business that is determined and aspirational enough to encourage employee
cooperation and dedication. It brings out the best in the workforce, causing them to work
together to accomplish shared objectives. To succeed, all businesses follow a strategic
management approach. MBO, or management by objective, is one of the strategy models used by
large corporations. MBO bases employee objectives on the top company. It is a procedure
whereby the management explains and communicates the organization's aim to the staff the
organization's aim, with the obvious goal of achieving each target.
Palitaw na Kalabasa ensures that the MBO technique is used in the business since it
enables managers to complete tasks properly and foster a more functional environment.
Employees feel more accomplished in response to seeing their successes when they fulfill each
aim. The management's primary goals are to boost earnings and maintain a successful business.
Palitaw na Kalabasa's management goals are outlined in the list below:

1. Appropriate Use of Company’s Resources

The business's primary purpose is to generate a profit. But the business would not
be able to get this until it properly utilizes its resources. Resources at Palitaw na
Kalabasa include utilities, ingredients, revenue, and people. The business guarantees that
these commodities will be used properly. The main goals of management are to allocate
the company's resources in ways that maximize profits and achieve maximum yields
with the least amount of work.

2. Hygienic Workplace
Cleanliness is one of the things that need to be prioritized as it concerns the health of
not just the employees but the customers as well. Palitaw na Kalabasa will promote hygiene
discipline, especially for those who will personally handle the product. One of the many
reasons the business will enforce this rule is to make a healthier and more productive
workplace. The objective of the management is to have a clean and hygienic workplace for
the safety of the employees and consumers.

3. To Use Only Fresh Ingredients

The business will only use fresh ingredients from a trusted supplier to ensure the
quality of the ingredients is up to standard. One of the objectives of the management is to
guarantee the freshness of the product to assure the consumer that their purchase is
worthwhile.
4. Building a Positive Working Environment
 Enhancing and establishing the company's professionalism contributes to the
execution of maximum benefits in the form of favorable working conditions for the
employee. To feel like they can independently make choices while also taking
responsibility for their responsibilities, employees should support one another. Respect
and order must be maintained between them.

5. Future Plan for Palitaw na Kalabasa

Palitaw na Kalabasa will prioritize business expansion in the first year. Then the
business will devote its efforts to meeting its sales targets, building its image, and
expanding its market share. The proponents plan to reach a larger consumer base that will
buy our items in the upcoming years. In addition to that, the business also aims to have
more physical stores and wholesalers around the world. To satisfy the customers, the
company will keep emphasizing product development, and the researchers shall be
proactive to be able to predict what the customer wants. This entails adjusting strategy in
light of both current conditions and future expectations.

3.2 Personnel & Administrative Workforce

Personnel management encompasses the administrative chores that deal with the hiring
and compensation of a company's employees because personnel refers to all the persons working
for palitaw na kalabasa business. Its primary objective as a discipline is to attract and keep the
skilled labor force required for a company to achieve its objectives. In other words, it is
described as an administrative specialty that focuses on hiring and developing staff so they can
contribute more to the business. All of the supporters will be in charge of running Palitaw na
Kalabasa. There will be hirings for a production worker, a salesperson, and an operations
manager. The employees in these positions are capable of running the company the way its
supporters intended. These positions offer descriptions, prerequisites, and qualifications so that
applicants may determine whether they are qualified for the position. While for the employer, the
criteria for preselecting individuals is the job description. A job requirement lists the most crucial
abilities, attributes, and credentials that a candidate must have to be able to perform certain job
activities and meet organizational requirements. Additionally, the supporters will give workers
the knowledge and tools they need to excel at their occupations and focus on them. Employee
training will be provided by the proponents so that they are well-prepared. The finest training
results in the best procedures and outcomes, which will help the organization continue to provide
excellent service.

3.3 Organizational Structure Management/ Legal Feasibility

 The business adopted the line type of organizational structure where is a direct flow of
authority from the manager down to the immediate levels of subordinates. Because of its simple
structure, the line-type organization permits quick adjustment to change situations.
The following are the major goals of the legal feasibility analysis:
 To guarantee the project's legality.
 To highlight the risks and obstacles that must be addressed in technical analyses, financial
models, and/or Value for Money analyses to aid in risk management; and
 To keep the product's development and implementation as stress-free as possible.
Having an organizational structure helps businesses and employees work better because
certain tasks are delegated to accomplish the organization's objective. It explains the various
roles and responsibilities that an employee plays within a company. Employees will be higher up
on the organizational structure the more authority they have. The most prevalent organizational
structure is the hierarchical org structure, which consists of a pyramid-shaped organizational
chart. This is the type of structure that we will use. It helps individuals define their levels of
authority and responsibility and provides employees with clear paths and opportunities to
advance.

3.3.1 Vision/ Mission

Vision
To be one of the profitable businesses in the Philippines that provides an innovative idea where
vegetables may be incorporated for a lot more nutritional, delicious, yet accessible snack/dessert.
And to work for the benefit of our workers, society, and the economy.

Mission
A hygienic environment and healthy, high-quality snacks are offered at Palitaw na Kalabasa. The
business aims to help individuals improve their eating habits by providing a traditional snack that
is rich in nutrients.

3.3.2 Illustration
The Palitaw na Kalabasa's internal structure is depicted in this section. Boxes are used to
represent the positions. By detailing the roles, responsibilities, and relationships that exist
between individuals within an entity, the diagram below visually conveys a company's internal
structure.

The Palitaw na Kalabasa is run by the Chief Executive Officer, a person who is
responsible for managing all aspects of a company's operations. Delegating and directing
agendas, increasing profitability, controlling the organizational structure and strategy of the
company, and communicating with the board are all examples of this. Under the Chief Executive
Officer are the Chief Operating Officer, and the Chief Financial Officer. The Chief Operating
Officer is a person who is responsible for the corporate executive in charge of the company's
ongoing business operations. The chief operating officer (COO) is usually the company's second-
in-command and reports to the CEO. He manages and handles the daily business operations of
the company, working closely with department heads and supervisors to support the day-to-day
activity of employees, while Chief Financial Officer is a senior executive responsible for
managing the financial actions of the company. They are often in charge of tracking cash flow,
analyzing strengths/weaknesses in the company's finances, and overseeing all aspects of its
financial success. The Chief Operating Officer and Chief Financial Officer have an under. Under
the Chief Operating Officer are the Product Manager, and Marketing Manager. The Product
Manager is a person who articulates what success looks like for a product, rallies a team to turn
that vision into a reality, and identifies the need that a product or feature will fulfill for customers
as well as the larger business objectives, while the Marketing Manager, a person who conducts
market research, comprehend customer preferences and trends, develop a marketing strategy and
budget, supervise the production of marketing materials and content, and carry out any other
pertinent tasks that are necessary for increasing the company's sales. Under the Chief Financial
Officer is the Accounting Manager. The Accounting Manager is a person who manages the
accounting department as a whole and oversees it. This entails preparing reports for upper
management, reviewing financial statements, and supervising the work of accountants.
Additionally, they may develop and implement accounting procedures and policies.

Figure 3: Palitaw na Kalabasa Organizational Chart

3.4 Job Specifications & Job Descriptions

 This is the list of attributes that are suggested for someone to meet the requirements for
and succeed in a position that they want. This lists the abilities, characteristics, and experience an
applicant could require to be considered for the position. Also, a job specification outlines the
qualifications that an applicant may require to be considered for the position, including the title,
responsibilities, and summary.
The following credentials are required by the business for each position:
Chief Operating Officer
Usually, the second-highest executive in a corporation, the Chief Operational
Officer (COO) answers directly to the Chief Executive Officer (CEO). Although the
position of the COO varies from organization to organization, their primary duty is to
oversee a business's overall operations.
Qualifications:
 The completion of a bachelor's degree in business, commerce, economics, or
industry.
 Think about earning an appropriate postgraduate degree to enhance your skills.
 Work your way up through a firm or gain considerable job experience in a
leadership capacity across a variety of industries.
Product Manager
A product manager is in charge of overseeing and developing a product, typically
within an organizational framework. They are also in charge of managing the
multidisciplinary group charged with creating the product. Throughout the development
cycle, product managers frequently assume the position of the "voice of the client." They
advocate for improvements and adjustments that can, according to research, strategic
analysis, and user testing, suit the needs of customers.
Qualifications:
 A degree in a relevant field, such as information technology, computer science,
marketing, or business.
 A certificate or short course in product management to develop useful applicable
abilities.
 Attend mixers, conferences, and meetups to network with people seeking to
connect with product management professionals.
Marketing Management
` The goal of marketing managers' execution and measurement of a variety of
tactics is to enhance corporate growth. With research, analysis, and marketing initiatives,
they increase current revenue streams while gaining new clients.
Qualifications:
  Get your marketing degree. This could be a marketing-focused bachelor's degree or a
diploma in marketing and communication.
 When you're still in school, try to get a spot in an internship program.
 Before moving up to the position of marketing manager, marketing managers frequently
begin their careers in lower-level positions like marketing coordinator.
Chief Financial Officer
One of the highest-ranking executives in a corporation, the Chief Financial Officer
(CFO) answers directly to the Chief Executive Officer (CEO). Although the CFO's work
varies from organization to organization, managing the business's finances, including profit
and loss reporting, budgeting, financial forecasting, and financial risk management, is their
primary duty. A CFO must be able to interact with employees at all organizational levels and
have excellent verbal and written interpersonal and communication skills. A CFO is
frequently needed to represent publicly traded corporations at investor relations events.
Qualifications:
 Get a bachelor's degree in a related discipline, such as accounting, finance, business, or
economics.
 Think about improving your talents by earning a postgraduate degree in a relevant field,
such as h a Master of Business Administration (MBA).
 Get considerable job experience in a managerial position in a company's finance
department. Before becoming a CFO, previous senior-level administrative experience is
often required.
Accounting Manager
Accounting managers direct the activities of an organization's accounting division.
Accounting supervisors coordinate tax preparation, budgeting, financial management,
financial reporting, and other departmental duties while delegating work to specific
accountants as needed.
Qualifications:
 Economics, finance, or accounting as a bachelor's degree.
 Excellent verbal & written communication skills.
 Ability to identify business-related processes requiring improvement.

3.5 Conditions of Employment

1. Palitaw Kalabasa will have an advertisement poster with the words "HIRING," the
requirements needed, contact information, and any other information that the applicants may
need. It will be posted outside the business working space or building, as well as in various
nearby locations, in order to attract more applicants.
 2. The advertisement poster stating this condition will also be posted on Palitaw
Kalabasa’s social media accounts.
3. Interested applicants may submit their resumes to the physical shop and will be
notified of an interview appointment via email, text, or phone call. The notification could take 1-
3 weeks to arrive.
4. If the applicant receives a phone call, it means they met the minimum requirements for
the job. Following that, they will be interviewed on the day designated by the HR Manager. A
group of high-ranking business personnel or employees will interview qualified applicants.
5. Once the applicant has been approved or passed the interview stage, he or she will be
given instructions and the required materials. There are some requirements and criteria that must
be managed to meet before moving on to the next stage.
6. Management will require the applicant's curriculum vitae or resume, police clearance
and records, medical assessment report, and drug screening. Each of the following documents is
required: SSS ID, PhilHealth ID, and TIN Number.
7. When all of the requirements have been fulfilled, management will give them the green
light to begin working on the position for which they applied.

Working Policies
A statement of intention along with one or more broad principles for accomplishing the
objective makes up a workplace policy. It conveys organizational values as well as expectations
for employee conduct and performance. Well-written policies help businesses manage their
employees more effectively by defining acceptable and unacceptable workplace behavior and the
repercussions of disobeying such policies.
1. During working hours, employees should wear appropriate attire. It will be given by
management for the convenience of the employees, particularly the newly hired
ones.
2. Employees will be given the option of working part-time (8 a.m. to 1 p.m., 1 p.m. to
6 p.m.) or full-time (8 a.m. to 6 p.m.), with their wages adjusted accordingly.
3. When both demands and concerns have been met, employee contracts will be
published, discussed, and signed by both parties; this must be completed before
newly hired employees begin working in their applied positions.
4. Taxes and other required fees will be deducted from employees' wages as minimally
as possible, as the management wishes to support its employees to the greatest extent
possible.
5. Employees will receive 13-month pay in addition to monthly payments and paid
annual leave. Employees may also request maternity and emergency leave, which
will be granted only if the reason is valid or legitimate.
6. Employees may raise or pass on their concerns to higher-ranking employees, which
will be resolved by the Chief Executive Officer. The management will do everything
 possible to meet the demands and needs of its employees, particularly in terms of
security.
Advantages Of Workplace Policies
 Are in line with the ideals of the organization.
 Adherence to labor laws and other relevant rules
 Show that the business is run in a competent and effective manner.
 Check for consistency in decision-making and operational procedures.
 Add to the strength of the staff’s stance in the case of legal action.
 When a new issue can be resolved quickly and effectively with a set procedure, saving time.
 Promote reliability and efficiency.
 Keep the organization's course, especially during times of transition.
 Offer a foundation for planning a business.
 Assist in the creation of accountability and performance evaluation.

3.6 Proposed Personnel Salaries/Wages and Benefits

The Palitaw na Kalabasa has paid salaries, wages, and perks to its staff members. Every
month's end or every half-month, employees have received their pay. On the other hand, benefits
are also provided to employees. These benefits include life and medical insurance, paid time off
for holidays like the two special holidays, paid maternity leave for female employees, pension
benefits, and, last but not least, bonus payments that are made in response to the achievement of
specific organizational goals. These advantages will signal that the employers did something
right, which will lead to a lot of trust. Giving them a polite and good offer can also help you get
your money back. The quality of their work, complete confidence, and improved and enhanced
working capacities.
Proposed Personnel Salaries/Wages and Benefits
Chief Executive Officer Salary
Table 3.6.1: Salary of CEO of Palitaw na Kalabasa
Years of 1 month 2 years 3 years 4 years 5 years
Work
Monthly 15,000.00 15,750.00 16,537.5 17,364.38 18,232.60
Salary

Chief Operating Officer Salary

Table 3.6.2: Salary of COO of Palitaw na Kalabasa
Years of 1 month 2 years 3 years 4 years 5 years
Work
Monthly 13,500.00 14,040.00 14,601.6 15,185.66 15,793.09
Salary

Chief Financial Officer Salary

Table 3.6.3: Salary of CFO of Palitaw na Kalabasa
Years of 1 month 2 years 3 years 4 years 5 years
Work
Monthly 13,500.00 14,040.00 14,601.6 15,185.66 15,793.09
Salary

Product Manager Salary

Table 3.6.4: Salary of Product Manager of Palitaw na Kalabasa
Years of 1 month 2 years 3 years 4 years 5 years
Work
Monthly 12,000.00 12,360.00 12,730.8 13,112.72 13,506.11
Salary

Marketing Manager Salary

Table 3.6.5: Salary of Marketing Manager of Palitaw na Kalabasa
Years of 1 month 2 years 3 years 4 years 5 years
Work
Monthly 12,000.00 12,360.00 12,730.8 13,112.72 13,506.11
Salary

Accounting Manager Salary

Table 3.6.6: Salary of Accounting Manager of Palitaw na Kalabasa
Years of 1 month 2 years 3 years 4 years 5 years
Work
 Monthly 12,000.00 12,360.00 12,730.8 13,112.72 13,506.11
Salary

3.7 Proposed Personnel Development

Providing better for and managing staff development. It strengthens the qualities of the
company's workforce. Additionally, it encourages employees to take responsibility for their
progress in the workplace. When management and workers are clear about the objectives of the
organization, it is much simpler to evaluate employee performance. Empowering employees to
develop their talents and abilities better prepares them for their roles and adds value to their
work. This directly advantages our company. When their company devotes time and money to
their training, they are proud. All staff will gain from these refined abilities acquired through the
seminars and training. They will find the seminars and training they received really beneficial in
their profession. As a result, staff development activities and training assist employees in closing
the gap between where they are today and where they aspire to be in five years, therefore,
preparing people for the present as well as the future. The yearly seminar program of the firm is
certain to be useful. The training or seminar choices for employees are mentioned below as
workers' help. A list of the personnel who are attending particular seminars and training is also
included in the table.
Table 3: Proposed Personnel Development of Palitaw na Kalabasa
SEMINAR/ SEMINAR/ ATTENDEES BUDGET
TRAINING TRAINING
SCHEDULE
January Cognition and Chief Executive Officer, P3,000 (P500
analysis Considering Chief Operating Officer, for each
a problem Seminar on Chief Financial Officer, attendee)
Workplace Issues. Product Manager,
Marketing Manager,
Accounting Manager
February Training in marketing Chief Financial Officer, P2,000
and sales. Marketing Manager,
Accounting Manager
March Managing complaints Chief Executive Officer P2,500
and conflicts
April Stress Management Chief Executive Officer, P2,400 (P400
Chief Operating Officer, for each
Chief Financial Officer, attendee)
Product Manager,
Marketing Manager,
Accounting Manager
May Stress Management in Chief Executive Officer, P5,000.00-
Team Situations Chief Operating Officer, 10,000
Chief Financial Officer,
Product Manager,
Marketing Manager,
Accounting Manager
June Food Safety Program Chief Executive Officer, P9,300
(Based on Hazard Chief Operating Officer,
Analysis and Critical Chief Financial Officer,
Control Points) Product Manager,
Marketing Manager,
Accounting Manager
July Webinar: Basic Food Chief Executive Officer, P5,250
Safety, Hygiene, and Chief Operating Officer, (P1,750 for
Sanitation Product Manager each attendee)
August Hazards Analysis and Chief Executive Officer, P4,032 (2016
Critical Control Point Chief Operating Officer for each
(HACCP) Awareness attendee)
September Food Safety Training Product Manager P2,000
and Examination
System
October Live Seminar: Sales Marketing Manager, P2,500
Training Program:
Sales Probing,
Negotiations &
Closing
November Live Seminar: Cost Chief Financial Officer, P3,000 (P
Accounting Accounting Manager 1,500 for each
attendee)
December Social Media & Chief Executive Officer, P5,000
Content Marketing Marketing Manager (P2,500 for
each attendee)
3.8 Administrative/Personnel Facilities
Figure 4 Stock Area

The
stock area is crucial for every business that sells goods or even provides services. It organizes
both the raw resources and the completed goods the business needs. The resources that the
business produces and needs to stock are ideal for this area of the store. To properly care for the
required supplies and items, this space has to be kept clean at all times, just like any other section
of the business.

Figure 4.1 Washroom

 The washroom area serves as one of the most crucial amenities that the staff needs since
it prioritizes and meets each employee's hygiene needs. It appears that there are far more things
that need to be given more significance to a lot of employees—the restroom—while most
individuals choose a job based on the money, chance, or even the perks. The restroom must be
located inside the building since it would be completely inefficient for employees to walk outside
and use other restrooms. The facility's intended users, in addition to the employees, will profit
from this. In order to uphold good hygiene, stop the transmission of disease, and maintain high
productivity, we will ensure that the restrooms at our business are maintained clean and germ-
free because unclean washrooms may both lower productivity and transmit a variety of ailments.
So, it is crucial to keep the restrooms at work clean for everyone's health and well-being as well
as for aesthetic reasons.

Figure 4.2 Inner Product Display Area

The manufactured
and saleable goods are
presented in the product display area. Engaging customers with visual merchandising is one of
the main goals of constructing product displays. The proponents anticipate what would draw
particular sorts of customers by designing themed displays, which help guide them in the correct
way. The customers will be given the opportunity to see the product we are offering in this
location. The exhibition area, as seen in the image, has just enough room because the proponents
chose to secure a decent location big enough to accommodate raw materials. Being a start-up
company, the proponents have chosen to rent only enough space for them to sell and keep their
items as they do not even require much room to manage the firm.
 Figure 4.3 Working Area/ Kitchen

The working area is the location where workers are located and where goods that will be
sold are produced. Precautions are taken here to ensure that individuals respect the rules and
remain safe. Having a clearly defined environment makes it much simpler to concentrate on and
complete the task at hand. It aids in putting workers in the proper frame of mind for work. The
effects of a positive work environment go well beyond boosted output and contented workers.
Palitaw na Kalabasa is a product that comprises materials for cooking and packing, hence proper
trash disposal is conducted there. Maintaining a clean work environment aids in the well-being
of personnel as well as the equipment and ingredients used to make the palitaw. Employees will
not be troubled by the mountainous rubbish to be cleaned at a workplace where litter and waste
are properly disposed of, and surfaces are cleaned on a regular basis.

3.9 Pre-Operating Period

The first step in starting a business is finding a source of funding to purchase the
supplies/ingredients required to produce the product. The money will come from the proponents
who will contribute a certain amount of money equally. Then the proponents will look for
appliances and furniture from a supplier that has decent quality and durability at a lower price.
Renovations and some improvements are also needed to the floor, walls, and ceiling to make the
place more attractive. Furthermore, the company will also hire a professional chef who
specializes in kakanin.
 3.9.1 Legal and Taxation Requirements
Table 4: Legal and Taxation Requirements of Palitaw na Kalabasa
Time to
No. Procedure Associated Costs
Complete
1 Obtain bank certificate of deposit of the 1 day No charge
paid-in capital
2 Verify the availability of the company 1 day PHP 40
name with the Securities and Exchange
Commission (SEC)
3 Register incorporation with the Securities 3 days Total: PHP 3,055
and Exchange Commission filing fee for articles of
incorporation PHP 1,000 +issuance
fees PHP 1,000+ PHP 510 bylaws
fee + PHP 470 - stock and transfer
book registration fee + PHP 75 -
membership book registration fee
4 Obtain a community tax certificate (CTC) 1 day PHP 500
5 Apply for a Barangay (district) clearance 2 days PHP 800
6 Obtain the Mayor's permit/municipal 11 days Total: PHP 4,080
license to operate at the Licensing Section PHP 900, sanitary permit fee +
of the Mayor's Office 0.2% of capital for license fee +
PHP 2,500 garbage collection fee
7 Receive inspection from the Mayor's 5 days No charge
Office
8 Buy special books of account at the 1 day PHP 400
bookstore
9 Register for taxes at the Bureau of 2 days Total: 615
Internal Revenue (BIR) PHP 500 (registration fee) + PHP
15 (certification fee)
10 Payment of documentary stamp taxes 1 day PHP 1,000

11 Obtain the authority to print 1 day PHP 100 (documentary stamp tax,
receipts/invoices with the Bureau of in loose form to be attached to
Internal Revenue (BIR) Form 2303)
12 Print receipts and invoices at the print 14 days PHP 4,000
shops accredited by the BIR
13 Submit receipts and invoices to the BIR 1 day No charge
for approval, have receipts/invoices and
books of accounts stamped by BIR
14 Initial registration with the Social 1 week No charge
Security System (SSS)
15 Complete registration with SSS and 1 day No charge
Philippines Health Insurance Company
(PHIC)
Total PHP 14,590
Approximately PHP 20,000