Statement of Purpose

This study aims to formulate recommendations of the Marketing Strategy of

the Jaleco Enterprises located at Katipunan, Labangon, Cebu City basis as a guide for the

improvement of financial income and lose.

Specifically, the purposed study attempts to answer the following sub problems;

1. 1. Management Feasibility

1.1 How do external environment factors expected to affect business operations?

1.2 How promotional Strategy will be implemented?

1.3 How to develop, retain and grow customers?

2. Marketing Feasibility

3. Production/ Technical Feasibility

3.1 How utilities and waste disposal plans work?

3.2 Why do building and facilities required for production?

3.3 Why technical specifications of the product important?

4. Financial Feasibility

4.1 How do they manage the sources of capital effectively?

4.2 How do the financial statement appear over a 5-year operating period?

4.3 How much is the total projected cash flow?

5. Socio-Economic Feasibility

5.1 How do the economic implications proposed in the business?

5.2 How do social benefits will contribute in the proposed business?

5.3 How does the socio-economic factors affects in the business?

TABLE OF CONTENTS
1. Management Aspect
i. Introduction
ii. Name of the firm
iii. Type of organization
iv. Name and Business Logo
v. Business Location
vi. Vision
vii. Mission
viii. Organizational goal
ix. Organizational chart
x. Job description and qualifications
xi. Recruitment, selection and hiring of workers
xii. Policies and regulations
xiii. Project schedule

2. Marketing Aspect
i. Introduction
ii. Marketing objective
iii. Product description
iv. Market description
v. Market segmentation
vi. Target market profile
vii. Target market
viii. Customer purchase behavior
ix. Market strategy
x. Market risk
xi. Risk reduction
xii. Safety net
xiii. Marketing mix
1. Product
2. Price
3. Place
4. Promotion
xiv. Competitive pricing strategy
xv. Below the line advertising
xvi. People
xvii. SWOT analysis
xviii. Proposed distribution channel

3. Technical Aspect
i. Introduction
ii. The product/service
iii. Plan location and layout
iv. Location analysis
 v. Selection criteria
vi. Determination of the quality control measure rendered
vii. Manpower requirements
viii. Service flow
ix. Waste disposal
x. Standard operating procedures
xi. Sanitation

4. Financial Aspect
i. Introduction
ii. Statement of financial performance
iii. Statement of financial position
iv. Statement of cash flow
v. Financial ratio analysis

5. Socio-economic Aspect
i. Introduction
ii. Employment and Job Creation
iii. Economic Growth and Development
iv. Income Generation for Farmers
v. Corporate Social Responsibility Initiatives
vi. Market Competition
vii. Environmental Impact

ACKNOWLEDGEMENT
The researcher would like to express their profound gratitude to the following people for their

invaluable contribution that helped in the completion of this study about pawnshop.

Mr. Roy Imperial, MSIT, School Director for managing us and the entire school in such a terrific and

exceptional way. Because of your humility, you are approachable by everyone.

Dr. Maria Liza Laborte-Moscosa, research adviser, for the unwavering assistance, patience, work,

and any helpful advice that thoroughly supported the researchers during the study.

Members of the Panel, for the suggestions in the improvement of this paper.

Ms. Myrna Jaleco the Owner of Jaleco Pawnshop for being so generous and letting the researcher

use her pawnshop to perform a feasibility study.

Our families, for supporting us in every way possible with their love, faith, and unwavering wisdom.

The Lord Almighty, for His Divine Love and Mercy that has preserved the researchers' confidence and

motivation to wrap up their research.

RATIONALE
 Making a loan is not that easy because you have to truest that organization to take care of our

jewelries, cellphones, tablets and appliances in exchange of the money that we need with an interest

Pawnshop is simply gives out secured loans to individuals that gives their personal items as

collateral. The item pawned usually had an agreed duration within which the individual pays back with

interest, or the item becomes the property of the pawnbroker who can sell it to raise back his funds.

On the other hand, pawnshops were created for the purpose of getting loans in

exchange for something called collateral. Collateral can be anything of value traded for

cash. Most people would go into a pawn shop with an antique or precious ring and

receive some money according to the value of the item as well as pawnshops is simply

a business that gives out secured loans to individuals that give their personal items

as collateral. The item pawned usually had an agreed duration within which the

individual pays back or the item becomes the property of the pawnbroker who can in

turn sell it to raise back his funds.

Furthermore, pawnshop is a business that offers secured loans to people, with items of

personal property used as collateral. The word “pawn” is derived from the Latin pignus, for pledge,

and the items having been pawned to the broker are themselves called pledges or pawns, or simply

the collateral. Ifan item is pawned for a loan, within a certain contractual period of time the pawner

may purchase it back for the amount of the loan plus some agreed-upon amount for interest. The

amount of time, and rate of interest, is governed by law or by the pawnbroker's policies. If the loan is

not paid (or extended, if applicable) within the time period, the pawned item will be offered for sale by

the pawnbroker/secondhand dealer. Unlike other lenders, the pawnbroker does not report the

defaulted loan on the customer’s credit report, since the pawnbroker has physical possession of the

item and may recoup the loan value through outright sale of the item.

Many people are in need, during experiencing a period of great difficulty, especially

financially. That is Jaleco Pawnshop raised its business not just for their own goal but for the
community to help people lend a money with a collateral with a small interest of 10% per month and

can be extended if the client cannot redeem the said loan. With the small amount of penalty which is

2% additional to the interest.

The pawnbroker using his bargaining power instigates the criteria and options for

the loans and agreement. Also, the pawn broker is charged with understanding the risk

in the case that the items that are brought into the shops might be stolen items. A

pawnbroker should also be able to understand and have the ability to differentiate fake

goods from original ones. You’re proper understanding of item and the retail industry

will count as an advantage to you.

Clients deposit valuables as collateral, and then pay interest over a set period. If the client

fails to pay up, the item may be put up for auction. In that case, the pawnbroker recoups its loan, and

if a profit is made at the auction, it goes to the client.

Chapter 1

MANAGEMENT FEASIBILITY
INTRODUCTION

The management aspect discusses the name of the firm, the type of organization, the vision

and mission, organizational goals, organizational chart, manpower resources, job description and

qualifications, recruitment, selection and hiring of workers, policies and regulations, project schedule

and management feasibility.

NAME OF THE FIRM

Jaleco Pawnshop is the name of the firm or company. Owned and operated by Myrna

Jaleco and is one of the most famous pawnshops in Barangay Labangon, Cebu City as they were

known as the friendliest to their customers. The firm was located in 130-C Katipunan St, Labangon,

Cebu City Philippines.

TYPE OF ORGANIZATION
 Jaleco Pawn Shop is an outstanding pawnshop serving the various financial needs of people

who need fast funds to settle their problems. We hope to offer the loan services by collecting a

personal material as collateral for a period of time agreed upon by us and the client.

Pawnshop, also known as “Pawning” or sometimes may be refer as “Pawn Broking” is

considered as one of the oldest and a source of credit Carter et.al., (2012) in which it offers loans in a

form of cash with items and/or personal belongings as a form of collateral. Typically, in this model

anyone can secure a loan; even without bank accounts, jobs or even a credit identity as long as there

is a collateral and just a valid ID everyone is welcome to this lucrative business. Furthermore on the

part of the Pawnshop industry, there are two ways for a Pawnshop to earn on this model; they are

charging an interest rates among the pawned materials in order for them to earn in transactions as

well as in the risk of default, they can get the collateral item in the discounted price and sold it to the

public on its premium value and of course, its value is above the loan borrowed. Our Objective at

Jaleco pawn shop is to become very profitable serving the various loan needs of the people of Cebu

City. We also want to construct a solid, corporate identity in our specified target market area and

become one of the pawn shops in the area by our third 15th year of operation, or before. We also

hope to realize a positive return on investment within the first 12 months of starting Jaleco pawn shop.

We will provide superior personal service to our clients. We at Jaleco pawn shop understand

that 70% of our business will come from repeat clients and their referrals, and we hope to make sure

of that main responsibility as specialists in the pawn industry is to determine the value and price of

any item brought tour shop and to be able to negotiate a price that will be good for nor just us but our

client. Our personal goal is to break the financial barriers that withhold individuals from achieving their

various aims. We hope to provide comfortable loans that will give joy to the City of Cebu.

Name and Business Logo

 Jaleco pawnshop came from the last name of the owner Myrn Jaleco . Owner choose the

diamond design logo as a symbol of A diamond logo embodies luxury, wealth, and indulgence, and

conveys these ideas to your customers is the dominant design feature of this logo and conveys a

brand message of luxury, royalty, and creativity. The thick, bold lines of this icon grab attention and

create a royal emblematic effect that elevates the business, while dark brown grounds the symbolized

with a sense of dependability and resilience

 BUSINESS LOCATION

Jaleco Enterprise (Pawnshop) Is located in 130-C Katipunan St. Labangon Cebu City 6000

Across Labangon Elementary School, beside DSWS . Owned and operated by Myrna Jaleco.
Mission and Vision Statement

Mission

Our mission is to provide our customers with simple and affordable pawn loans to sort out

their issues. We at Jaleco Pawn shop also plan to become friends and mentors to our customers as

well as quality service providers.

Vision

Our vision at Jaleco Pawn shop is to become the recognized leader in our targeted market

for small collateralized loan services. Jaleco Pawn shop will offer high-quality pawn loan services to

the citizens of the Philippines.

 ORGANIZATIONAL GOAL

Jaleco Pawnshop is a large and most known company in the City of Cebu, known as one of the

most famous when it comes to taking care of their customers, assessing what is the need and as

such, the organizational goals of Jaleco Pawnshop can vary depending on the specific business

segment and product or services.

However, some of the common organizational goals of Jaleco Pawnshop include:

1. Continuous growth and profitability:

Jaleco Pawnshop aims to achieve sustainable growth and profitability in all its business

segments and services through innovation, operational efficiency, and cost management.

2. Customer satisfaction and loyalty:

Jaleco pawnshop aims to provide high-quality products and services that meet the needs and

preferences of its customers and earn their satisfaction and loyalty.

3. Employee development and engagement:

Jaleco pawnshop aims to attract, develop, and retain talented employees by providing a

supportive and engaging work environment that fosters their personal and professional growth. Since

Jaleco pawnshops gives a lot of opportunity to those unemployed individual in the society especially

in the City of Cebu.

4. Sustainable business practices:

Jaleco pawnshop aims to conduct its business operations in an ethical, responsible, and

sustainable manner that contributes to the long-term well-being of the communities and environments

in which it operates.

Overall, the organizational goal of Jaleco pawnshops to become a leading and sustainable

player in the pawnshop industry, delivering value to its customers while fulfilling its social and

environmental responsibilities.
 Organizational Structure

For a start, the business will operate in the form of Sole Proprietorship, with Ms. Myrna

Jaleco as its proprietress. For its first fiscal year, only two personnel complement will set up the

business. The proprietress shall perform on concurrence capacity the function of the Manager while

the Bookkeeper/cashier and Appraiser/Compliance officer shall be performed by one personal. No

security guard shall be hired in early operation.

One of the things that we plan to do as we launch out is to create systems and

structures that will outlive the owner of the business. This is why we are starting out with the structure

of the business. The success and height that a business will attain is dependent on the workforce they

have. They workforce will go a long way to decide how fast the business grows and the profits to be

made. If you have attendants who are very saucy, people wouldn’t want to come to your shop. It takes

time to build brand awareness, and you don’t have to destroy it with bad choices when it comes to

your workforce.

Jaleco Pawn shop understand how important our founding workforce is to the success

of our business. Jaleco Pawn shop was established to raise to the utmost height and not to die even

before we start. We have decided on the workforce we hope to start our business with and we have

decided on the criteria and the various duties they will be doing. We hope to employ very zealous and

trustworthy workforce that will offer extensive services to our clients, and also help us maximize

profits.
 Its Organizational Structure is presented below.

PROPRIETRESS

MANAGER

BOOKEEPER APPRAISER/CASHIER SECURITY GUARD

Setting clear expectations for each team member job, duties, and success factors can have an

immediate good effect. It guarantees that everyone is competent, although it seems straightforward,

when roles are defined, people know what is expected to them, how to act, and what they do. The

most powerful members of the company sit at the top of the structure used to represent organizational

systems, with the least powerful people at the base.

 JOB DESCRIPTION AND QUALIFICATIONS

JOB TITLE: OWNER/ PROPRIETRESS

JOB PURPOSE:

In charge of providing direction for the business

Creates, communicates, and implements the organization vision mission and overall direction

In charge of fixing prices and signing business deals

In charge of recruitment

JOB TITLE: MANAGER

JOB PURPOSE:

In charge of managing the daily activities in the ship

Ensures that the store facility is in tip top shape and conducive enough to welcome customers

Interfaces with third – party providers (vendors)

Controls the sales floor inventory

Ensures that goods and products are properly arranged Supervises the entire sales staff and

workforce Any other duty as assigned by the CEO

JOB TITLE: BOOKKEPPER/ ACCOUNTANT

JOB PURPOSE:

Receives payments on behalf of the organization Issues receipt to customers

Prepares financial report at the end of every working week Handles all financial transaction on

behalf of the company Interfaces with our bankers in charge of payment of tax, levies and utility bills

Any other duty as assigned by the CEO / store manager

 JOB TITLE: APPRAISER

JOB PURPOSE:

Appraise and evaluate Jewelries, Gadgets, Designer Items, Fine Art and/or any item of sound

value which will be used as basis and collateral for the company's short-term cash loan services.

JOB TITLE: SECURITY GUARD

JOB PURPOSE:

In charge of protecting the shop and its environment

Controls traffic and organize parking

Give security tips when necessary

Patrols around the building on a 24 hours basis

Presents security reports weekly

RECRUITMENT, SELECTION AND HIRING OF WORKERS

Jaleco Pawnshop has a standard recruitment process to ensure that the qualified candidates

are selected for each job opening. Here are the typical steps involved in the recruitment process:

1.Job Posting:

Jaleco posts job vacancies on its website, as well as on job search sites and social media

platforms, and flyers.

2. Application:

Interested candidates are required to submit their application online through the

facebook page of Jaleco pawnshop. The application usually includes a resume/CV and a cover letter.
 3. Screening:

The JALECO pawnshop owner or manager usually the one who reviews all applications

received to assess the candidate's qualifications and suitability for the position.

4. Initial Interview:

Shortlisted candidates are invited for an initial interview with the manager. This interview may

be conducted online or in person.

5. Second Interview:

Candidates who pass the initial interview and technical assessment are invited for a second

interview with the Owner or a representative from the relevant department.

6. Reference Checks:

Jaleco pawnshop may conduct reference checks to verify the candidate's employment history,

education, and other relevant details.

8. Job Offer:

Candidates who successfully complete the recruitment process and are selected for the job

position are offered a job offer, which includes details on compensation and other terms and

conditions.

9. Onboarding:

Once the candidate accepts the job offer, they go through an onboarding process that includes

orientation, training, and other activities to help them get acclimated to the company culture and their

new role.
POLICIES AND REGULATIONS

Jaleco pawnshop is committed to complying with all applicable laws and regulations in the

countries where it operates. Jaleco pawnshop has implemented various policies and regulations to

ensure that it operates ethically and responsibly.

1.Code of Conduct:

Jaleco pawnshop has a Code of Conduct that outlines the company's expectations for ethical

behavior, compliance with laws and regulations, and respect for human rights. All employees and

business partners are expected to adhere to this Code of Conduct.

Since Jaleco pawnshop is known as the company who takes care of their employees and

treated them fairly.

2. Environmental Policy:

As they care about the individuals and the environment, Jaleco always make sure to follow

these rules to give a positive impact to the society.

Jaleco pawnshop is committed to reducing its environmental impact and has implemented an

environmental policy that outlines its goals and strategies for achieving them.

3. Health and Safety Policy:

Jaleco pawnshop has a policy that prioritizes the health and safety of its employees and

ensures compliance with relevant health and safety laws and regulations.
 4. Data Privacy Policy:

Jaleco is committed to protecting the privacy of its customers, employees, and business

partners and has implemented a data privacy policy that outlines how personal information is

collected, stored, and used.

5. Anti-Discrimination and Harassment Policy:

By making sure that their employees and customers were feel safe and be treated fairly, Jaleco

pawnshop has a policy that prohibits discrimination and harassment in all forms, including race,

gender, age, and sexual orientation. The company is committed to providing a safe and inclusive

workplace for all employees.

PROJECT SCHEDULE

These were the breakdown list as Jaleco pawnshop given:

1. Develop Work Breakdown Structure:

This involves breaking down the project into smaller tasks or work packages. This helps to

ensure that the project is manageable and that each task can be assigned to a specific team or

individual.

2. Resource Allocation:

This involves assigning resources, such as personnel, equipment, and materials, to each task

or work package. It also involves ensuring that each resource is available when needed.

3. Risk Assessment and Management:

This involves identifying potential risks that could impact the project schedule and developing

strategies to mitigate or avoid those risks.

4. Monitor and Control:

Throughout the project, progress is monitored against the project schedule to ensure that the

project is on track. Any deviations from the schedule are identified and addressed promptly.

5. Closeout:
 Once the project is completed, a final review is conducted to ensure that all project goals and

deliverables have been met. Lessons learned are also documented and used to improve future

project schedules.

Chapter II

MARKETING FEASIBILITY

MARKETING OBJECTIVES

 PROVIDE SATISFACTION TO CUSTOMERS

 INCREASE IN DEMAND

 PROVIDE BETTER QUALITY PRODUCT TO CUSTOMERS

 CREATE GOODWILL TO ORGANIZATION

 GENERATE PROFITABLE SALES VOLUME

 to develop effective marketing tactics for the business

 to establish trusting relationships with the clients

 to determine the actual size of the prospective market for the business

INTRODUCTION

Pawnshops were created for the purpose of getting loans in exchange for something

called collateral. Collateral can be anything of value traded for cash. Most people would go into a

pawn shop with an antique or precious ring and receive some money according to the value of the

item.

One of the most important aspects of a pawn shop is the uniqueness and value of the

items you have. To attract potential customers, regularly update your website and social media pages
with high-quality images and descriptions of your inventory. This not only showcases your products

but also sparks interest and drives curiosity among potential customers.

Highlighting your exceptional items and the stories behind them will set your pawn shop

apart from competitors and emphasize the value and character that only you can provide.

This study aims to explore the marketing aspect of Jaleco Pawnshop delving into its key

marketing principles, marketing strategies, customer experience and how they were able to promote

their products and provide quality of service by the customer’s need. Since Jaleco aimed to get the

customer’s trust and digital marketing initiatives. By examining these dimensions, we seek to

understand how Jaleco pawnshop’s management and staff marketing efforts have contributed to its

market position, services and offers, and overall business performance.

As we go through to this study, Jaleco pawnshop is a successful pawnshop in the City of

Cebu as they were able to get their customer’s trust, loyalty and by giving the good impact of their

business. As they aim to get their customer’s loyalty by providing the best customer experience

through marketing strategies and convenience, safety of the customer and being comfortable.
PRODUCT DESCRIPTION

Jaleco Pawn shop will act as a short-term collateralized lender that will accept jewelry,

electronics, certain musical instruments, and other objects of resalable value with the intent to provide

a loan to our customer. Jaleco Pawn shop believe that our loans will be for a period two months and

will carry a loan to collateral value ratio of 25%. Since we accept as collaterals, most of the items that

we accept are Jewelries, Cars, appliances, cellphones, gadgets and more. By the 2 months of period

if the customer will not come back to redeem the items, pawnbroker will own the collateral and sell it

in a low and Affordable price.

One of the most important aspects of a pawn shop is the uniqueness and value of the

items you have. To attract potential customers, regularly update your website and social media pages

with high-quality images and descriptions of your inventory. This not only showcases your products

but also sparks interest and drives curiosity among potential customers.

MARKET DESCRIPTION

Pawn shop is a unique place for cash loans and selling or buying a wide range of

items including jewelry, tools, electronics, guns, and other merchandises at a payment cost agreed

upon by both the parties. These shops are a great option to retail old and unimportant products at a

reasonable price rather than sell the products at a scrap shop. They are handled by knowledgeable

staff for better value prediction and authentication of the product during resale.
 Quick and convenient methods of loan provision for a short period of time mortgaging

any type of collateral till the loan amount is paid off majorly drives the market. Availability of different

products and wide range in the pawn shops is also among the major growth factor coupled by

reasonable pricing of used goods. As it is easy and economical to set up a pawn shop, a lot of people

opt for pawn business, which marks the growth of the market. These shops are the one stop

destination for antique and vintage products, which attracts collectors, thus fueling the growth of the

market. However, changes in gold rates and the recovering economy limits the market growth.

MARKET SEGMENTATION

Market segmentation is a process that consists of sectioning the target market into

smaller groups that share similar characteristics, such as age, income, personality traits, behavior,

interests, needs, or location. Knowing your market segmentation will help you target your product,

sales, and marketing methods. Also, the pawn shop market is segmented on the basis of services,

end users, and geography. By services, it is classified into consumer lending (secured loans with

personal property used as collateral), used goods retailing, and appraising items for purchase or

pawn. Based on end users, it is categorized into generation X, generation Y, and baby boomers.

GEOGRAPHIC DEMOGRAPHIC PSYCHOGRAPHIC BEHAVIORAL

ZIP ZONE AGE VALUES PURCHASING

CITY GENDER GOALS HABITS

COUNTRY INCOME NEEDS BRAND

POPULATION OCCUPATION PAIN POINTS INTERACTIONS

DENSITY FAMILY SIZE HOBBIES SPENDING

DISTANCE FROM A RACE PERSONALITY HABITS

CERTAIN RELIGION TRAITS CUSTOMER

LOCATION(LIKE MARITAL INTERESTS LOYALTY

YOUR OFFICE OR POLITICAL PARTY

 STORE) STATUS AFFILIATION ACTIONS TAKEN

CLIMATE EDUCATION SEXUAL A ON WEBSITE

TIME ZONE ETHNICITY ORIENTATION

DOMINATE

LANGUAGE

Target Market Profile

Key Benefits The study provides an in-depth analysis of the pawn shop market with

current and future trends to elucidate the imminent investment pockets in the market. Current and

future trends are outlined to determine the overall attractiveness and to single out profitable trends to

gain a stronger foothold in the market. The report provides information regarding key drivers,

restraints, and opportunities. Quantitative analysis of the current market and estimations are provided

to showcase the financial caliber of the market. Availability of different products and wide range in the

pawn shops is also among the major growth factor coupled by reasonable pricing of used goods. As it

is easy and economical to set up a pawn shop, a lot of people opt for pawn business, which marks the

growth of the market. These shops are the one stop destination for antique and vintage products,

which attracts collectors, thus fueling the growth of the market. However, changes in gold rates and

the recovering economy limits the market growth.

Our Target Market

It cannot be denied that the pawn shop industry has a vast range of customers. Jaleco

Pawn shop being a standard pawn shop will capitalize on the large variety of small loan service and

other industry related services we wish to offer, hence we have made sure all are employees are well

trained and equipped to serve a diverse range of clientele base.

 Our target market at Jaleco Pawn shop will move across businesses of different sizes

and individuals. We hope to equip our business with a business concept that will help us work with

individuals living in Cebu and other key parts of the Visayas We have built Jaleco Pawn shop to

service the residence of Labangon Cebu City and every other location our retail stores will be located

all over the Philippines especially in Cebu. We have also conducted our market research and we have

ideas of what our target market would be expecting from us.

The target market profile they are a group of people that have been identified as the most

likely potential customers for a product because of their shared characteristics such as age, income

and lifestyle.

CUSTOMER PURCHASE BAHAVIOR

Consumer behavior is important because it helps marketers understand what influences

consumers’ buying decisions.

By understanding how consumers decide on a product, they can fill in the gap in the market

and identify the products that are needed and the products that are obsolete.

Studying consumer behavior also helps marketers decide how to present their products in a

way that generates a maximum impact on consumers. Understanding consumer buying behavior is

the key secret to reaching and engaging your clients, and converting them to purchase from you.

Here are some general insights into the customer purchase behavior of Jaleco pawnshop:

1. Product Quality

What consumers think and how they feel about various alternatives product, quality and

services.
 Jaleco pawnshop sells brand new jewelries, motorcycles, cellphones, laptops, watches,

luxury bags , appliances an many more. They make sure the product and quality provided to their

customers are genuine and real.

2. Customer Service/ Customer experience

One the most important thing that Jaleco pawnshop could offer to their customer is the

creat customer service to make sure their customers has a great experience.

In most cases, brands and product quality influence consumer behavior only with the things

they can control; Jaleco pawnshop offers to be the best in customer service as well as the lowes

amount in the market with an excellent quality of the product tey sell. By making sur its genuine and

not deffective.

3. Personal factors: an individual’s interests and opinions can be influenced by demographics (age,

gender, culture, etc.).

Overall, Jaleco pawnshop’s customer purchase behavior is influenced by factors such as

affordability, convenience, quality, and availability. And showcase their benefits, which can influence

their purchase decisions.

MARKETING STRATEGY

Many people are unsure about the pawn shop process, or how to determine the

value of your items. Create blog posts, videos, or even host webinars that educate potential

customers on the ins and outs of the pawn shop business. By providing this valuable information, you

become a trusted and reliable source of knowledge, which encourages people to choose your pawn

shop over others.

That is how Jaleco pawnshop started to create this type of strategies to gain more customers

to have more slaes and to gain customer experience and trusts.

Especially when the pandemic hits this country, most people started utilizing and using social media.

Buying some stuff, scrolling to check the needs

Consider topics such as, “How to Determine the Value of Your Collectibles” or “The

Benefits of Pawning vs. Selling.” These educational pieces of content will not only showcase your

expertise but also help drive targeted traffic to your website. And Jaleco pawnshop started to create

website on January 2020.

 The backbone that dictates success for any business is the marketing strategies that are

put in place. This is one of the sole reasons we have come up with robust strategies son how to

attract our clients. We at Jaleco Pawn shop understand that if our customers have a bad experience

while doing business with us, they will look for our competitors and give them the business that could

have otherwise been ours.

We understand that bad customer service is a major reason that makes business loses

customers. We hope to create a good customer culture to keep our customers satisfied and good.

We also know that having good customer relationship management practices is

important to keeping our clients. This we believe can be achieved by getting good software for your

Jaleco Pawn shop and also to keep up with our client. With this, we will have the necessary

information about our business and our clients at the tip of our fingers with which we can use to keep

in touch with them on important occasions like birthdays, anniversaries and public holidays.

Jaleco Pawn shop understand that we need to market, advertise and promote our

business so as to attract new clients and keep old ones. We plan to have a budget to help us carry

out our marketing activities. We hope to do the following to promote our business;

Advertising on the shop website or through magazine ads

Giving updates on social media about our pawn shop

Informing social media to put word out about our pawn shop

Printing business cards and fliers

Sending out press releases

 Creating a brochure to show clients

Advertising on radio

Giving special incentives to our first set of clients so that they can spread word around about

our pawn shop

Here are the other list marketing strategies in Jaleco Pawnshop:

1.Offer Appraisals Online

As Jaleco pawnshop started to opearte and launched a website, to make the customers

more easier for them to do transaction and asked make some inquiries in convenient way.

Make it easy for customers to get an estimate of their item’s value by offering appraisals

online. Create a form on your website where users can input information about their belongings,

upload pictures, and receive a preliminary valuation from your team. Offering online appraisals not

only saves time, but it also creates a positive impression that your pawn shop is technologically

advanced and customer-centric.

We recommend doing this to stand out from competitors and cater to those who value

convenience and quick responses.

2. Start a Loyalty Program

Develop a loyalty program to encourage customers to continue to choose your pawn

shop over others. This can include points on every purchase or redemption, exclusive discounts, or
special offers for regular customers. By rewarding your customers, you’ll make them feel valued and

appreciated, which in turn strengthens your business relationships.

Loyalty programs are excellent incentives for your customers and can lead to increased

repeat business and long-term growth for your pawn shop.

Jaleco Pawnshop have this saying, “customer first” they value their customer’s

experience that is why they created a loyalty program as their way of thanking their customers. Since

Jaleco Pawnshop known as the best customer service . They are making sure that the customer’s are

satisfied by giving a loyalty program, in return of being a loyal customer.

3. Emphasize Customer Stories

Share customer experiences and stories on your website or social media platforms to

showcase the human aspect and build trust in your pawn shop. By highlighting these stories, you give

potential customers a sense of confidence in your business while creating engaging content for your

audience.

Customer stories are a powerful way to connect with your target market and show the

positive impact your pawn shop has had on people’s lives.

This is one of the best Marketing strategy in Jaleco pawnshop as they care about their

customer’s experience. This one is the most powerful way to connect their customer as Jaleco aimed

to get their customer’s trust.

4 .Encourage Customer Reviews

Customer reviews play a significant role in establishing trust and attracting new

customers. Make it easy for your customers to leave reviews on your website, Google My Business,
or social media pages. Additionally, you can use Podium’s Reviews tool to manage your reviews

more efficiently, ensuring that you respond to all feedback proactively.

Including customer reviews of Jaleco Pawnshop’s platforms will not only bolster their

reputation but also demonstrate that they value customer opinions and care about their experience at

Jaleco PAWNSHOP.

Market Risk

Pawn shops provide a lucrative form of income and are important in many communities

as they sell low-cost items and allow people to get a little extra cash by pawning their goods. Both

pawnbroking and pawn shops have been around for hundreds, if not thousands of years. As a pawn

shop owner, it is your choice of what you’re willing to accept, including the types of jewelry, musical

instruments and even power tools. There’s also a delicate balance to consider between what items

you can make money off of and a fair price to offer the customer. That said, before opening up your

own pawn shop, there are some very real business risks you need to be aware of:

Loss of Market Value

When you buy items from others, especially gold and other precious metals, you typically base

your offer on the current market value. For example, you consider how much a precious metal is

currently selling for per ounce, weigh the item and offer the fairest price you can that still enables you
to profit from the item when you resell it. One significant risk of doing this is a fluctuating market,

particularly with fluctuating prices of precious metals.

Inability to Resell

Items Another financial risk you face with a pawn shop is not being able to resell an item.

Unless you have an online presence, for the most part, you place the items you buy in your pawn

shop and hope someone else buys them. Unfortunately, not everything will sell, which leads you to

loss on the unsold item.

General Liabilities

As with all types of businesses, you also need to consider liabilities. For example, if a customer

comes into your store and trips over a large musical instrument near the doorway, you can be held

liable. Because you cannot prevent these types of incidents in every case, business insurance is

crucial for this type of risk.

Legal Implications

Depending on where you live, you have certain rules and regulations to abide by. Most likely,

your city decides whether or not you can run a pawn shop there. You also need to consider other

legalities, like getting a proper business license, permit, insurance and anything else required. Some

pawn shops are required to have certain types of security, as well as things like fireproof safes.

Zoning approval and getting your permits approved must be done before you open business, or you

will be facing large fines and maybe even forced to close your store. Lastly, because there is a risk of

receiving stolen items, pawn shops must be diligent with keeping proper records of goods received,

and complying with the requirements of reporting certain items with serial numbers to law

enforcement.
Crimes

As a pawn shop, others, who may not have the best intentions, know you have a good deal of

expensive merchandise in your store. Criminals are aware of the expensive musical instruments,

televisions and DVD players, camera equipment and of course jewelry, you have in your store. They

also know you carry cash on site. Make sure you have excellent surveillance equipment, a solid

security system and a way to protect your business if there is a theft or vandalism. Be sure to have

crime insurance as well in case of an incident of burglary or theft. Owning a pawn shop is a great

business to run as long as you consider these risks beforehand. Always have business insurance,

including general liability, worker’s compensation, crime and property insurance. It’s best to speak

with your insurance agent to make sure you have the right types and coverage amounts to ensure

your business is protected.

Risk Reduction

Safety may not always seem like a priority, but an accident can be costly if you’re

unprepared. Being PROACTIVE is always less expensive than being REACTIVE. Fortunately, there

are many things you can do to help protect both your business and your greatest assets; your

employees and customers.

SAFETY NET

As a pawnshop company, Jaleco pawnshop faces various risks related to safeguarding their

loan collateral, customer’s safety, product quality, employee safety, and environmental impact. To

mitigate these risks, Jaleco has implemented several safety nets, including:

1. Employee training and safety programs:

Jaleco pawnshop provides regular training and education programs to its employees to

promote safe work practices and minimize workplace accidents. The company also has safety

protocols in place to ensure that employees are protected from workplace crimes.
2. Environmental management system:

Jaleco Pawnshop has an environmental management system in place to ensure that its

operations have minimal impact on the environment by minimizing waste generation, and complying

with environmental regulations.

3. Compliance with regulations:

Jaleco pawnshop complies with all applicable laws and regulations related to product quality,

employee safety, and environmental impact. This includes regularly monitoring and reviewing

regulations to ensure that the company remains compliant.

4. Last but not the least, Jaleco pawnshop aims by making sure that the loan collateral by the

customer is safe, by providing safety vault for the jewelries, cellphones, tablets , laptops and

watch and huge stock room to the appliances and other things applicable to the stockroom.

MARKETING MIX

Its purpose is to ensure the creation and execution of a successful marketing strategy;

the attempt is to satisfy both the customer and the seller. You will often come across your managers

telling you to create marketing plans.

And this is what a marketing of Jaleco pawnshop. The purpose is to ensure that every

marketing initiative that you take is brilliantly coordinated with each other.

Marketing incorporates all these physical and non-physical, real and perceptual

attributes into four elements of the marketing mix.

 Product

First, it is important to understand the problems your product is trying to solve,

because without it, you don’t have a place in the market, and you certainly can’t sell or advertise

something that doesn’t exist or doesn’t have any demand.

The key to get this element of the marketing mix correct is by writing down a product definition.

That is how Jaleco pawnshop offers a quality product that would make the customers

love to buy with a reasonable price.

Jaleco pawnshop offers a product that is genuine and looks like new at the lowest proce in

the market. Watches, appliances, luxury bags, bicycles, mobile phones, tablets, laptops and jewelries.
 Price

The price of a product should reflect its value to the customer. This also entails the relative

price versus quality level that the product maintains against the competitors.

The Jaleco pawnshop challenge is to come up with a price that is attractive to consumers

while still turning an acceptable profit for the company. As the company aims to get more customers,

Jaleco pawnshop offers the price that is very affordable and reasonable as Jaleco pawnshop is

known as the most low cost in the market. They sell the product for a slow as 50% from the original

price it depends of the product

The price of a product will directly affect how it sells. This must be determined by what

value the customers attach to the product rather than the objective cost of the product.

Here are the sample list of price percentage as Jaleco pawnshop sells a product

1.Jewelries per gram basis

2.Laptops 75% from the original price

3. Bicycles 50% from the original market

price

4.Cellphones 65% from the original lates

market price

5. Watches 70% from the original price

6.Appliances 50% from the original price

 7.Luxury bags 75% from the original price

And many more to be discussed depend of the product

Place: Jaleco pawnshop products and operating office are available in Labangon, Cebu City

and Talisay City. Jaleco pawnshop also operates by offering service posting some items available

online at Jaleco pawnshop facebook page.

Promotion

Promotion refers to the marketing communication methods used to inform, persuade,

and remind the target market of the product or services, basically any interaction that your company

has with the consumer regarding your product.

This may include advertising, sales, promotions, special offers, and public relations.

Promotion is quite different from marketing, because promotion is the communication aspect of the

entire marketing function.

 Jaleco Pawnshop offers and launches a promotion by giving atleast 10% discount to every

customer if they bought atleast a minimum of 10,000 purchase and additional 5% discount to the loyal

customer.

As a way of thanking their customer’s, Jaleco pawnshop offers :

1.Improving customer service

2.Adopting customer loyalty programs

3. Loan guarantees

4. Discounted purchase

5.Gift cards

BELOW THE LINE ADVERTISING:

Jaleco Pawnshop’s below the line (BTL) advertising is a marketing strategy that focuses on

promoting products or services directly to customers rather than through traditional media channels.

Jaleco uses various below the line advertising techniques to promote its products, including:

1. In-store promotions:

Jaleco Pawnshop uses in-store promotions, such as product displays, to encourage

customers to try its products. These promotions are often used in selling or marketing area and of

course, to make sure its an eye captivating, the selling rea should be presentable and a super friendly

environment.

2. Sponsorships:

Jaleco Pawnshop sponsors various events and organizations, such as sports teams, charities.

These sponsorships help to increase brand recognition and build positive image in the company.

3. Digital marketing:
 Jaleco Pawnshop uses digital marketing techniques, such as social media, email marketing,

and online ads, to reach customers directly and encourage them to try its products. Social media

posting include the promotions with a perks and discounts.

PEOPLE:

Jaleco Pawnshop is one of the most famous pawn shop in the City of Cebu Philippines, they

are not that big enough yet, with a workforce of estimated 50 employees from the in the whole City of

Cebu. The company values diversity, teamwork, integrity, and excellence in its people. Here are some

of the key people Jaleco pawnshop:

1. Myrna M. Jaleco

The owner of the pawnshop

2. Angel M .

The vice president of the pawnshop who mostly operates and leads to the other branch

in Talisay City

3. Lenard Meregildo

The Manger of the Pawnshop who is the substitute and became the replacement when

the Glisyl Casinto who is the manager before for more than 6 years.
 4. Sid J.

The marketing manager who works for more than 10 years in Jaleco pawnshop.

These are some key people, other people we haven’t gotten an information as the

management refuses to do so.

SWOT ANALYSIS

It is very important to note that Jaleco Pawn shop was established with just one shop to

be used to test run the business for a period of 3 to 5 years to know if we will add more funds, or

expand the business and build more pawn shops in other location We at Jaleco Pawnshop are very

much aware that some small businesses offer most of the services we are to be offering in the same

city, which is reason why we are taking every aspect of our planning serious to establishing a

business that will be very successful. We also know that to get a well detailed SWOT analysis.

Strength Our SWOT Analysis explained that our shop location, the business model we will

be using at Jaleco Pawn shop, our vast payment options, service offerings, experienced workforce,

and our excellent customer service culture will without doubt count as a strong strength for Jaleco

Pawn shop.

Weakness Our main weakness at Jaleco Pawn shop will be the duration it might take to

attract customers as a new pawn shop in Labangon, Cebu City. We also see our lack of financial

power as a weakness and a barrier to our desired goal.

Opportunities Starting Jaleco Pawn shop in a great city like Cebu, and in Talisay City and

along an ever-busy road gives us unlimited opportunities to offer our products and services to a lot of
people. With our detailed analysis and excellent market feasibility, we at Jaleco Pawn shop already

believe and understand what our potential clients will be looking for when they visit our pawn shop.

Threat Our SWOT Analysis was quick to note that the major threat we will be facing at

Jaleco Pawn shop will be the emergence of a new pawn shop in our business location, and the ever-

changing government policies. It also stated that despite all these being threats and hindrance to our

business, we at Jaleco Pawn shop still have the advantage and chance to overcome anything thrown

to us in the City of Cebu.

PROPOSED DISTRIBUTION CHANNEL:

Since Jaleco pawnshop operates two store location in Talisay and in CEBU, to ensure that its

products are widely available and easily accessible to customers, Jaleco Pawnshop uses a

distribution channel that includes various channels. Here is a proposed distribution channel for Jaleco.

1.. Jaleco pawnshop owned stores:

The company operates its stores, such as the main branch located in Cebu and for the second

branch where located in Talisay City, where customers can purchase products available.
 2. Online stores:

Online stores are a growing distribution channel for Jaleco Pawnshop, with the increasing

demand for online shopping. The company has an official store on e-commerce platforms like Shopee

and they are also available in facebook where allowing customers to purchase its products online.

CHAPTER III
TECHNICAL FEASIBILITY

INTRODUCTION

Technical feasibility study can serve as a great planning tool by providing an overview of how the

company can evolve during the course of its development. The results of the study also require you to

troubleshoot potential problems and track the progress of your project from concept to reality.
 This study discusses about the processes, operations and activities of the company. It

states also the other aspects regarding bringing the raw materials into a finished product ready for

trade. size and production schedule are all presented for the purpose of identifying the business

operation. Also, product specifications, the product processes using flowchart, the list of office

supplies, tools, and equipment are enumerated with their corresponding costs.

LOCATION

Location is in Katipunan, Labangon, Cebu City, in front of Labangon, Elementary School, Beside

DSWS,. Owned and operated by Myrna M. Jaleco

PRODUCT AND SERVICES

The JALECO Pawnshop will specifically carry gemstone jewelry that is designed for the

professional and sociable man and woman. Our selection will range in various colors, sizes and styles

to meet the unique needs of the everyday man and woman.

Management will rely on customer feedback and sales reports to eliminate or introduce particular

sizes, colors and styles.

 Jaleco pawn shop will act as a short-term collateralized lender that will accept jewelry, electronics,

certain musical instruments, and other objects of resalable value with the intent to provide a loan to

our customer. Jaleco Pawn shop believe that our loans will be for a period two months and will carry a

loan to collateral value ratio of 25%.

We believe that during this two-week period, if the customer does not come back in to pay the loan,

we will then have to sell the merchandise to the general public.

Sample products we sell and offer as collateral to a loan are:

1. Jewelries Gold, silver platinum

2. Watches

3. Laptops

4. Bicycles

5. Appliances

6. Luxury bags

7. Cellphones

8. Tablets

9. Motorcycles and many more

PLAN AND LOCATION LAYOUT

LOCATION ANALYSIS

1. Market Access

Assess the proximity of potential locations to target markets and distribution channels.

Consider factors such as population density, consumer preferences, and the availability of

transportation networks.

2. Infrastructure

Consider the quality and availability of infrastructure, including transportation networks and

utilities (electricity, water, telecommunications). Adequate infrastructure is crucial for efficient

production and distribution operations.

3. Labor Force
 Jaleco Pawnshop evaluate the availability, skills, and cost of the local labor force. Consider

factors such as education levels, technical skills, wage rates, and labor market stability. A location

with a skilled and trainable workforce can positively impact

4.Regulatory Environment

Consider factors such as business regulations, tax incentives, labor laws, and

environmental regulations. Compliance with local regulations is essential for smooth operations and

avoiding legal issues

5. Cost Analysis

Conduct a comprehensive cost analysis that includes factors such as land prices,

construction costs, labor costs, taxes, utility expenses, and other operational expenses.

6.Risk Assessment

This is one of the most common factors in doing business. Evaluate potential risks and

vulnerabilities associated with each location, such as natural disasters, political instability, social

unrest, or security concerns. Mitigate risks by choosing locations with lower vulnerability or

implementing appropriate risk management strategies.

7. Competitor Analysis

Most of all, business should consider the presence and strength of competitors in potential

locations. Assess the market saturation and competitive landscape to understand the potential

challenges and opportunities.

8.. Expansion and Future Growth

Lastly, by doing a successful business is also to think of the future Jaleco pawnshop consider

the scalability and potential for future expansion in each location. Jaleco’s long-term growth plans and

accommodate additional production capacity if required.

 SELECTION CRITERIA

Jaleco pawnshop is a most famous pawnshop in the City of Cebu. When selecting new

products, markets, or business opportunities, improving customer service Jaleco considers several

criteria to ensure strategic alignment and maximize potential success. Here are some common

selection criteria:

1. Customer Preferences:

Jaleco pawnshop considers the preferences, convenience, and cultural nuances of the target

consumers. This includes understanding their food habits, Jaleco pawnshop aims to develop services

that resonate with the target consumers' preferences and meet their specific needs.

2.Regulatory Environment:

Jaleco pawn shop consider the regulatory framework and compliance requirements of the

target market. This includes analyzing safety regulations, safety requirements, by making sure to

meet the regulatory standards of the market and operate within legal boundaries.

3.Sustainability and Responsibility:

Jaleco pawnshop considers environmental and social sustainability factors in its selection

process. This includes assessing the environmental impact of products, social responsibility

initiatives, and alignment with sustainable development goals. Jaleco pawnshop operate in a

responsible and sustainable manner, contributing positively to the communities it serves.

DETERMINATION OF THE QUALITY CONTROL MEASURE RENDERED

Jaleco pawnshop emphasizes quality control measures to ensure that its product quality and

and services meet the quality standards. These measures are aimed at maintaining consistent quality,

safety, and customer satisfaction.

 Here are the quality control measures:

1.Continuous Improvement:

Jaleco Pawnshop focuses on continuous improvement by collecting and analyzing data related

to product quality, customer feedback, and market trends. This information is used to identify areas

for enhancement, develop new ideas of marketing, customer service, and optimize processes and

operation of the company

2.Compliance with Regulatory Standards:

Jaleco Pawnshop ensures compliance with the government quality regulations. This include

following by making sure the product they sell and accept as a collateral is genuine, making sure

that the product came from the real owner by asking a receipt or ownership from the customer,

following the correct percentage of the interest of the loan, principles, and other applicable standards

and certifications.

3.Quality Assurance Program:

Jaleco Pawnshop established a comprehensive quality assurance program that encompasses

all aspects of its operations. This includes implementing quality management systems, conducting

regular audits, and ensuring compliance with industry standards and regulatory requirements.

MANPOWER REQUIREMENTS

Here are the manpower requirements of Jaleco pawnshop:

1. Quality Assurance and Control:

  Quality Assurance Manager

 Compliance Officer

2. Sales and Marketing:

 Sales Representative

 Key Account Manager

 Marketing Manager

 Trade Marketing Specialist

2. Engineering and Maintenance:

 Maintenance

 Project Manager

3. Finance and Administration:

 Finance Manager

 Accountant

 IT Support Specialist

4. Research and Regulatory Affairs:

 Regulatory Affairs Manager

 Compliance Officer

SERVICE FLOW

Jaleco Pawnshop offers a service with the highest appraisal of the items or products

with the lowest interest rate. Not just that, Jaleco Pawnshop offers to accept as a collateral not just
gold, diamonds and silver, we also accept some appliances, laptops, cellphones, tablets, watches and

many more

Since a pawn shop makes money in multiple ways, it needs to attract more than one

type of customers to be successful. In order to make money off short-term collateral loans, the shop

must have customers who need cash to pay for something immediately, do not have or do not want to

use other forms of credit, and has a source of income to pay off the loan and interest to redeem the

item. To make a profit by selling items, the pawn shop needs customers who want to save money

buying secondhand items. That is how Jaleco Pawnshop services flow is. Not just that, here are the

following:

1.Marketing and Sales:

Jaleco employs marketing and sales strategies to promote and sell its products. This involves

advertising, promotion, market research, and establishing relationships with wholesalers and loyal

customer and newbies.

2.Continuous Improvement:

Jaleco Pawnshop continuously evaluates its operations, processes, and customer feedback to

identify areas for improvement. This includes research and development efforts and by making sure

that their customers are happy andsatisfied with their services and safety.

3.Customer Service:
 In all thins, Jaleco pawnshop is very known as a friendly atmosphere in all competitors out

there, emphasizes customer satisfaction and provides support services to address inquiries,

concerns, and feedback from consumers and by making sure, all customers are treated fairly.

WASTE DISPOSAL MANAGEMENT

The waste from the store place will be identified as biodegradable.

These wastes will be disposed thru the collection of garbage collector in barangay Labangon, Cebu

City.

Non-biodegradable wastes will be recycled or sold to junkshop.

STANDARD SELLING/OPERATING PROCESS

These steps are meant to act a guideline in the selling and operating process of JALECO

Pawnshop, as each staff approach will probably have to be customized to fit the situation and the

customer., we have our designated staffs to operate the selling area and operates the office to assist

the customers who wanted to sell, make a loan and redeem some items and more

Step 1: Be Prepared The purpose of being prepared is to provide you, the salesperson, appraiser

and other staff with pertinent information needed to increase your confidence in the selling process

and providing customer service. Being prepared also means knowing your product and being able to

answer any questions that pertain to it.

Step 2: Opening the Sale The first essential key to selling is to develop sensitivity to your potential

customer, and that is not always a simple task.

Step 3: Probing Once the customer is put at ease, feels comfortable and has developed some trust in

you, your next step is to determine the customers' wants, needs and desires. This is done with the

use of effective probing questions.

STORE SCHEDULE

JALECO Pawnshop will operate from 8am to 6pm. It will start selling and operating at that time.

The employees should be present one hour before the opening of the store for the arrangement and

preparation. Since we have a lot of loyal customers who already know the operating hours and most

of them waits outside the premises until it started to operate and open.

Training an employee development procedure:

Objective: To provide employees with the necessary knowledge, skills, and resources to

perform their roles effectively, maintain compliance with regulations, and foster a culture of continuous

learning and improvement.

Procedure:

1. Training Needs Assessment:

a. Conduct a comprehensive assessment of training needs across different job roles and

departments.

b. Identify specific knowledge gaps, skill deficiencies, and areas for improvement.

c. Consider regulatory requirements, industry standards, and emerging trends in determining training

priorities.

2. Training Plan Development:

a. Develop a training plan outlining the training objectives, topics, methods, and timelines.

b. Align training initiatives with business goals, operational requirements, and individual employee

development plans.

c. Determine the appropriate training delivery methods, such as classroom sessions, online courses,

workshops, on-the-job training, or external resources.

d. Assign responsibilities for training coordination, content development, and delivery.

3. New Employee Orientation:

a. Conduct comprehensive orientation programs for new employees to introduce them to the

company's culture, policies, procedures, and safety protocols.

b. Provide an overview of their job responsibilities, performance expectations, and

opportunities for growth.

4. Continuous Professional Development:

a. Encourage employees to engage in ongoing professional development to enhance their

knowledge and skills.

b. Provide access to external training resources, industry conferences, workshops, and online

learning platforms.

c. Support employees in pursuing certifications, relevant courses, or advanced degrees related

to their roles.

d. Encourage employees to share knowledge and best practices through internal training

sessions, cross-functional collaborations, or knowledge-sharing platforms.

5. Performance Management:

a. Establish a performance management system that includes regular feedback, coaching, and

performance evaluations.
 b. Conduct performance reviews to identify individual strengths, areas for improvement, and

training needs.

c. Use performance data to tailor training and development plans for employees.

d. Recognize and reward employees who demonstrate exceptional performance or actively

pursue their professional development.

6. Safety and Emergency Preparedness Training:

a. Conduct safety training programs to ensure employees are aware of potential hazards,

emergency procedures, and safety protocols.

b. Provide training on proper handling of hazardous materials, safe equipment operation, and

first aid and emergency response protocols.

c. Regularly review and update safety training materials to reflect changes in regulations or

best practices.

7. Record Keeping and Documentation:

a. Maintain accurate records of employee training and development activities, including

attendance, training content, evaluations, and certifications.

b. Utilize learning management systems or other record-keeping tools to track employee

progress and generate reports.

c. Ensure compliance with regulatory requirements regarding employee training documentation

and retention.

9. Evaluation and Continuous Improvement:

a. Regularly assess the effectiveness of training programs through feedback surveys,

evaluations, and assessments.

b. Seek input from employees and managers to identify areas for improvement and additional

training needs.
 SANITATION

Jaleco pawnshop prioritizes sanitation and follows stringent hygiene practices to ensure the

safety and quality of its environment. Here are the sanitation measures implemented by Jaleco

pawnshop:

1.Training and Education:

JALECO PAWNSHOP provides training programs to employees regarding sanitation

practices, food safety, and hygiene. This ensures that all staff members are knowledgeable and well-

equipped to maintain a clean and safe production environment.

1. Clean surroundings

By making sure that the employees and staff follows the cleanliness to ensure our customers

are feel comfortable with the surroundings.

 CHAPTER IV

FINANCIAL ASPECTS

INTRODUCTION

The financial aspect of the study proves that the investment will derive exceptional profits for

the investors. The pawnshop realized sizeable amounts of income for the 5-year study regardless of

its scenario. The return of investment is double the amount of any investment in the local market. That

is why Jaleco Pawnshop is a good project that is worth the while for implementation. Any investor

could then be assured of a considerable return in the future.

Pawnshops are required to maintain a minimum level of capital or net worth in relation to their

loan portfolio. The existing statutory capital of P100,000 has become too mall and susceptible to the

proliferation of Jaleco Pawnshop operators. Pawners have 60 days after maturity to redeem their

pawned articles and pawnshop must notify their clients within the 60day period before they can sell

the pawned item in an auction. For the convenience of pawners, the new rules will require to a given

address, or by SMS or text through specified mobile phone. Pawnshops will be required to comply

explicit “know your pawner” procedures consistent with the requirements of the Anti-Money

Laundering Act and to address concerns on the Anti- Fending law. For transparency and to minimize

malpractices, pawnshops will be required to post in their premises the acknowledgement of

Registration or Authority to operate issued by the BSP, business days and hours of the pawnshop,

their interest rate and charges for loans, among others.

Pawnshops make money by providing personal loans, reselling retail items, and offering auxiliary

services, such as money transfers or cellphone activation. Earning interest on loans and profits on

retail sales are the principal income sources for the standard business model for a pawnshop.
 BSP also signed memorandum of Agreement with the Department of on Interior and Local

Governments on the sharing of information between BSP and the City of Municipal government units

to ensure that only those that have the property business permits and registered with the BSP are

transacting with the public.

This study aims to explore the financial aspect of Jaleco Pawnshop, delving into its

financial strategies, profitability, liquidity management, and leverage. By analyzing these dimensions,

we seek to understand how Jaleco Pawnshop financial management practices have contributed to its

financial performance, resilience, and overall business success.

STATEMENT OF FINANCIAL PERFORMANCE

JALECO PAWNSHOP

PROJECTED INCOME STATEMENT

FOR THE YEAR ENDED 2015,2016,2017,2018,2019

Income 2019 2020 2021 2022 20

Sales 4,752,000 6,237,000 9,090,000 9,720,000 10,026,000

Cost of Goods Sold -864,000 -1,134,000 -1,620,000 -1,850,000 -1,945,000

Gross Profit 3,888,000 5,103,000 7,470,000 7,870,000 8,081,000

Expenses 18,000 20,000 22,000 24,000 26,000

Accounting/ Legal

Bad Debts 20,000 25,000 27,000 29,000 30,000

Depreciation 12,555 25,110 37,665 50,220 62,775

Credit Card Fees 75,600 99,225 141,750 151,250 170,500

Insurance 18,000 18,360 18,900 18,950 19,500

Miscellaneous 11,250 11,115 11,475 11,500 11,575

Payroll Taxes 70,425 169,065 253,575 260,575 275,347

Permits and 5,400 5,580 5,715 6,000 6,000

Licenses

Rent 600,000 660,000 720,000 780,000 840,000

Salaries 420,000 456,000 516,000 520,000 525,000

Utilities 132,000 137,000 140,000 143,000 147,000

Total Expenses 1,383,230 1,626,485 1,894,080 1,994,495 2,113,677

Net Profit 2,504,770 3,476,515 5,575,920 5,875,505 5,967,303

STATEMENT OF FINANCIAL POSITION

JALECO PAWNSHOP

PROJECTED BALANCE SHEET

FOR THE YEAR 1, YEAR 2, YEAR 3, YEAR 4, YEAR 5

Year 1 Year 2 Year 3 Year 4 Year 5

Asset

Current Assets

Cash 361,125 379,170 407,610 410,750 415,840

Accounts Receivable 77,625 81,495 87,615 96,795 105,795

Inventory 2,241,000 2,353,050 2,529,540 2,678,836 2,779,215

Other Current Assets 43,875 46,080 49,545 49,709 50,150

Total Current Assets 2,723,625 2,859,795 3,074,310 3,236,090 3,351,000

Long Term Assets

Long Term Assets 65,500 70,000 85,000 90,000 92,000

Accumulated Depreciation 13,100 13,100 13,100 13,100 13,100

Total Long-Term Assets 52,400 56,900 71,900 76,100 78,900

Total Assets 2,776,025 2,916,695 3,146,210 3,312,990 3,429,900

Liabilities and Capital

Current Liabilities

Accounts Payable 518,490 545,805 586,755 590,700 591,450

Other Current Liabilities 339,750 356,760 383,490 385,840 387,490

Subtotal Current Liabilities 858,240 902,565 970,245 976,540 978,940

Long Term Liabilities

Total Liabilities 858,240 902,565 970,245 976,540 978,940

Paid in /Invested Capital 1,917,785 2,014,130 2,175,965 2,336,450 2,450,960

Total Capital 1,917,785 2,014,130 2,175,965 2,336,450 2,450,960

Total Liabilities and Capital 2,776,025 2,916,695 3,146,210 3,312,990 3,429,900

STATEMENT OF CASH FLOW

JALECO PAWNSHOP

PROJECTED STATEMENT OF CASH FLOW

FOR THE YEAR ENDED

CASH FROM OPERATING ACTIVITIES

2,504,77
NET INCOME 0
DEPRECIATION 13,100
DECREASE IN ACCOUNTS RECEIVABLE -77,625
INCREASE IN ACCOUNTS
PAYABLE 518,490
2,241,00
INVENTORY 0 1631785
NET CASH FLOW FROM OPERATIONS 872,985

CASH FROM INVISTING ACTIVITIES

FIXTURES & EQUIPMENT -51,500
NET CASH FLOW FROM INVESTING -51,500
821,485
CASH FROM FINANCING ACTIVITIES
CURRENT
LIABILITIES 858,240
OTHER LIABILITIES 339,750
1,197,99
NET CASH FROM FINANCING ACTIVITIES 0

2,019,47
CHANGE IN CASH 5
2,307,50
CASH AT BEGINNING AT BEGINNING OF THE PERIOD 0
 4,326,97
CASH AT END OF THE PERIOD 5

FINANCIAL RATIO ANALYSIS

JALECO PAWNSHOP

FINANCIAL RATIO ANALYSIS

LIQUIDITY RATIO YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

CURRENT
RATIO 3.17 3.17 3.17 3.17 3.17
QUICK RATIO 0.51 0.51 0.51 0.51 0.51
PROFITABILITY RATIO
RETURN ON ASSETS 20.90% 28.00% 60.20% 63.70% 64.00%
RETURN ON EQUITY 28% 37.50% 80.60% 56.50% 64.40%
RETURN ON SALES 14.90% 16% 25.90% 26.80% 27.50%
TURNOVER RATIOS
INVENTORY TURNOVER 0.4 0.5 0.6 0.7 0.8
SALES TO WORKING CAPITAL 2.55 3.19 4.23% 4.59% 4.67%
ASSETS TO SALES 71.50% 57.20% 43% 84% 76.05%
ACCOUNTS PAYABLE TO SALES 10.90% 8.80% 6.60% 7.00% 7.90%
LEVERAGE RATIOS
CURRENT LIABILITIES TO NET WORTH 33.90% 33.90% 33.90% 33.90% 33.90%
CURRENT LIABILITIES TO INVENTORY 38.40% 38.40% 38.40% 38.40% 38.40%
TOTAL LIABLITIES TO NET WORTH 33.90% 33.90% 33.90% 33.90% 33.90%
FIXED ASSETS TO NET WORTH 26.60% 26.60% 26.60% 26.60% 26.60%

FINANCIAL RATIO ANALYSIS Overall, the JALECO PAWNSHOP demonstrates sufficient liquidity,

has no debt obligations, and demonstrates favorably profit margins.

Liquidity and Leverage: The JALECO PAWNSHOP has adequate liquidity and compares favorably

with its peers based on its current ratios. In Year One, the JALECO PAWNSHOP reports a current

ratio of 3.17. The JALECO PAWNSHOP leverage and equity ratios will not compare with its peers.

This is primarily attributed to the fact that the owner will self-fund with no outside debt or financial
obligations. Profitability: Profitability compares below its peers as evidenced by its Return on Assets

Ratio of 20.9% in Year One. Mitigating this average is the JALECO PAWNSHOP above average

gross profit margin of 81.8% in Year. The owner is able to achieve such margins with reductions in

expenses associated with overhead and by constructing the jewelry designs herself.

Activity: The average Inventory turnover is .70X times annually. The JALECO is anticipated to

turnover inventory .38X in Year One, .48X times in Year Two and .64X in Year Three and compares

to be in line with its peers. Although slow to turn, this is a commonality of the Jewelry Store Industry

with merchandise inventories representing more than 50% of annual sales.

RECOMMENDATION

Based on the cited and conclusions, the following recommendations are given

 The company should evaluate its financial ratios in relation to its competitors or to its liquidity,

leverage, and profitability over a five-years.

 By implementing creative and effective marketing tactics and procedures, the business would

be able to steadily enhance its financial yields and secure an increase in sales.

 The Jaleco Pawnshop is hereby advised to adopt the proposed financial plan.

 By implementing creative and effective marketing tactics and procedures, the business would

be able to steadily enhance its financial yields and secure an increase in sales. Cost and

operating expense increase would be slowed down by implementing strict cost management or

cost-cutting initiatives. A good combination of these would optimize or result in steadily rising

firm profit.
 CHAPTER V
SOCIO ECONOMIC ASPECT

INTRODUCTION

This chapter discusses the effect of the business in the society, Philippine

government, environment, employees, and customers. It includes the benefits and advantages the

business could offer once it started to operate. Jaleco Pawnshop is established not only for profit of

the partners but also for the customers and the society, also the security and safety of each worker

will be properly implemented. The compensation for the employees will be properly followed

according to the minimum wage law.

 Of course, Jaleco Pawnshop strive to continue serving people by making loan, selling products

and gives the quality of customer service, by following the ethical business process, Jaleco Pawnshop

aim by competing to other competitors by embracing market knowledge competition, giving

promotions as they were chosen as the most customer choice, industry growth, creating a positive

ripple effect throughout the socio-economic ecosystem and safeguarding their asset and their

customers.

By making this study, we aim to gain a comprehensive understanding of the socio-economic

aspect of Jaleco Pawnshop. By exploring its initiatives, outcomes, and collaborative efforts, we will

assess the company's contributions to employment, economic growth, women empowerment, social

responsibility, and market competition. The findings will shed light on Pawnshop’s socio-economic

impact and provide valuable insights for Management, including Jaleco pawnshop itself, local

communities, policymakers, and the wider business community, fostering a more sustainable and

inclusive socio-economic landscape.

 EMPLOYMENT AND JOB CREATION

Jaleco pawnshop plays a significant role in employment and job creation within the countries

where it operates. Here are some key points regarding Jaleco pawnshop’s impact in this aspect:

1. Skill Development: Jaleco pawnshop employment provides opportunities for skill

development and capacity building. Employees gain valuable experience and expertise in their

respective fields, contributing to their personal growth and enhancing their employability both within

and outside the company.

2.Career Growth and Advancement: Jaleco offers career opportunities for its employees,

allowing them to grow and advance within the company. Through training programs, mentorship, and

internal promotions, a culture of continuous learning and professional development.

. 3.Direct Employment: Jaleco pawnshop provides direct employment opportunities through its

operations, administrative offices, and branches. These jobs span various sectors, such, marketing,

finance, human resources, and more.

4.Indirect Employment: Jaleco activities have a multiplier effect on employment. Such as third

party using the agencies tied up to the company

5. Economic Impact: Jaleco employment practices contribute to the overall economic growth

and development of the regions where it operates. By providing jobs, the company stimulates local

economies, generating income for individuals and their families, and supporting local businesses
Economic and growth development

Jaleco Pawnshop plays an important role in the development of the country. Business will give

the opportunities, which will provide the needs of the people and economy. The business is

responsible to pay all the needed taxes to contribute to the economy when it expands to the larger

scale of business. Venturing into the business will provide a means to minimize the unemployment

rate. Taxes and fees due to the company’s operation will also help the government to attain economic

progress.

Employment and Income Generation: Jaleco pawnshop’s employment practices, as

discussed earlier, create income opportunities for individuals and their families. This leads to

increased purchasing power, consumer spending, and economic activity, contributing to overall

economic growth and development.

Social responsibility Initiatives

Being part of a business industry affects social economic environment in many means. As of now,

many Filipinos experience crisis because of political intention, globalization and continuous increase

of cost materials and products brought about by correct fluctuations. The company presumes that it

will give benefits at the same time, to the consumers or customers.

The social implications the proponents is to imply the success of the business and to be dedicate

to proponents work, improve self-confidence and lessen the hesitation with socializing with other

people. When it comes to social implications of family, which is the most important consumer buying

organization in society, they serve as the number one consumer of every business that leads them to

achieve their goals.

The target market of Jaleco pawnshop is mostly the women lives in barangay Labangon who loves

to but some diamonds and jewelries with a low- cost amount.

Price is very affordable as compared to the malls, as based on our surveys, 8 out of 10 are women

who loves buying jewelries. So the pawnshop offers a promotion for those who purchase above

10,000 will get a discount up to 10 percent.

means to minimize the unemployment rate. Taxes and fees due to the company’s operation will also

help the government to attain economic progress.

MARKET COMPETITION

This segment is one of the most important in the pawnshop business especially when it comes

the service and product that Jaleco pawnshop offers to their customers as socio-economic impact.

While competition can have both positive and negative effects, it is generally beneficial for

consumers, the industry, and the economy as a whole. Here are some key points:

1.Market Concentration: Jaleco pawnshop faced its reality that a lots of competitor s out there

who offers same service and benefits. Jaleco’s strong market position can be advantageous in terms

of economies of scale and market influence, it is essential to maintain a balance between market

concentration and promoting fair competition to avoid potential negative consequences, such as

reduced consumer choice.

2. Quality: Jaleco pawnshop always make sure that the product and services they oferd is

genuine with high quality. In a competitive market, companies strive to differentiate themselves by

offering unique features, superior quality, and value-added products. high product standards, improve

quality, and develop innovative offerings.

3.Price Competition: Competition compels companies to keep prices competitive, which can

benefit consumers by providing affordable options. Lower prices and discounts can lead to increased

purchasing power and improved affordability, particularly for price-sensitive customers.

Environmental Impact

To secure the heath of the people when the business operates. The waste must be disposed

properly specifically, the materials which are harmful to the environment. The business must follow

rules and regulations imposed by the law. The company will also help environment by the lessening

garbage through proper waste disposal. It helps to maintain the cleanliness of the surrounding.

1.To environment: Many establishments cannot avoid in causing pollution. The management will

make sure that there will be rules regarding this matter that will strictly implemented. Trashcans with

labeling biodegradable and non - biodegradable will placed at every corner inside and outside the

business establishments of customers not to liter.

2.To employees: The business will provide additional employment for the unemployed residence

especially in the City of Cebu. We will be implementing training, seminars to improve their skills and

also to help the enterprise to succeed. In terms of their salaries, the establishment will properly follow

minimum wage law to inspire the workers to work hard and also we will be adding other incentives

and bonuses.

3.To Customers: The Jaleco Pawnshop has responsibility to provide only the best services and

products that defines the welfare and satisfaction of its customers with uniqueness entertainment

services. Knowing that the product that we are selling is genuine with a very affordable prices that will

surely our clients will love and to ensure the quality of it. The company has also the responsibility to
make the customers comfortable in their stay in the establishments, by making sure their safety and

being comfortable. By making sure our wholesalers and retailers to provide the great customer

experience. We wanted to make sure that our customers are happy and satisfied with the service and

product quality that we provided to get their loyalty.

CONCLUSION

By this study and we were able to recommend the management to continue the good

behavior as a good customer service. And by giving value to each customer’s we encourage the

management to provide satisfaction to the customers by giving some discounts and more

understanding to each customer. By providing secure loan grace period from the maturity date up to

5days without additional interest.

And making sure the safety convenience of the customers, we also recommend the

management to put up more staff to accommodate every customer.

As we gather more information and based in our study, here’s the list of our

recommendation to the management:

1.Image Management

The first step to improving your pawnshop is to change people’s perceptions. Potential

customers who see a dusty window crammed with items as they pass your store may keep walking,

whereas an attractive entrance beckons them inside. Give your shop a facelift with paint, a new

pawning, a window display with items organized by category and signs promoting your specialty

items. Add a new pawnshop sign or polish your old one. After your customers step inside, treat them

to a clean, well-lit store with items clearly marked and sorted by type. This is how we see the potential

as one of our recommendation to Jaleco Pawnshop, to create a good image to the society to be more

welcoming.

2. Location

Pawnshops often reside in low-income neighborhoods to cater to people down on their luck. If

the location of your store is keeping customers away and relocating isn't an option, meet with the
other neighborhood business owners to discuss ways to revitalize the area. Consider converting the

block into a business district. Install signs, benches, plantings, attractive lighting and secure parking to

unify the block and enhance your store's image. As we see that Jaleco pawnshop was located at the

dead which is easy way to access and to find by the customers.

3. Customer Service

All businesses benefit by providing exceptional customer service. Review the basics of good

service with your staff and train them on the store’s lending and return policies. Make sure they

understand the laws governing pawnshop transactions so they can convey them to customers.

Furthermore, Jaleco Pawnshop is very known as the most excellent customer service in City of Cebu

we highly recommend to ask for customer feedback following a sale or service transaction with a

feedback card. Include space for an email address so you can notify the customer about events,

promotions and items of interest that become available for sale.

4. Advertising

Create a website to advertise events and promotions and announce items available for sale.

Highlight your specialty areas, such as coins, jewelry, weapons or musical instruments, and include

links to information about the items' history, manufacturer or production methods. Include coupons

and incentives for customers to visit. Announce visits by appraisers and antiques experts so

customers can plan to bring their items in for appraisal. Promote your expertise by offering classes on

coin collecting or recognizing rare antiques and artwork.