A Feasibility Study of Little Land Children Salon Final File

A FEASIBILITY STUDY OF LITTLE LAND CHILDREN SALON
A Feasibility Study in IE PC 4113 Project Feasibility
Presented to the Faculty of the Industrial Engineering Department
Cebu Technological University-Main Campus:
M.J. Cuenco Ave, Cor R. Palma Street, Cebu City, Philippines
In Partial Fulfillment of the Requirement for the Degree of
BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING
Antecristo, John Lloyd B.
Lugatiman, Britney Blaire C.
Taganile, Jay Annie O.
February 2023
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APPROVAL SHEET
This THESIS entitled “A FEASIBILITY STUDY OF LITTLE LAND CHILDREN

SALON” prepared and submitted by ANTECRISTO, JOHN LLOYD, LUGATIMAN,
BRITNEY BLAIRE, AND TAGANILE, JAY ANNIE in partial fulfilment of the
requirements for the degree of Bachelor of Science in Industrial Engineering has been
examined and approved for oral examination.
THESIS ADVISORY COMMITTEE
DYANNE BRENDALYN M. CAVERO, MEngIE

IE, Department Chairperson
ENGR. ELISA MAGNASE ENGR. TERESITA B. CAPIN

Financial Adviser Course Professor
________________________________________________________________________
APPROVED by the Committee on Oral Examination with a grade of: __________
THE PANEL OF EXAMINERS
ENGR. RAUL GUINITARAN

Member
ENGR. DYONNE BERNADINE MIRASOL ENGR. ELISA MAGNASE

Member Member
ACCEPTED AND APPROVED in partial fulfillment of the requirements for the

degree, BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING.
Date of Oral Examination: March 12, 2023
RONALD M. GALINDO, PME, DPA, Ph.D.

Dean, College of Engineering
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ACKNOWLEDGEMENT
―TO GOD BE THE GLORY‖
In the pursuit of this study, several people who did countless contributions for the
success and fulfilment in all of our endeavours undertaken before this piece of time born.
We, the researchers of this study would like to extend our heartfelt gratitude to the
following individuals for their contribution in the course of this study:
To our Instructor in IE PC 4113 Project Feasibility, Engr. Teresita Capin for her
valuable efforts in helping and guiding us with the making of our thesis study. Thank you
for all your amazing effort.
We give thanks to our family, friends and mentors for the full-support financially,
motivations, love and care.
Above all, thank you to our Almighty God for supplying all the things we need in
order for us to work invisibly, and giving us enlightenment for this study to happen.
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DEDICATION
We dedicate our deepest gratitude to our beloved Heavenly Father, Lord God,
who lighted our way to make this thesis happen in our crucial times, giving us His
strength, determination, and providing us good health in our daily life.
We humbly dedicate these upshots of bloods and sweats to:
Antecristo Family
Lugatiman Family
Taganile Family
This thesis is all for you!

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TABLE OF CONTENTS
APPROVAL SHEET .......................................................................................................... ii
ACKNOWLEDGEMENT ................................................................................................. iii
DEDICATION ................................................................................................................... iv
TABLE OF CONTENTS .....................................................................................................v
LIST OF TABLES ........................................................................................................... xiv
LIST OF FIGURES ......................................................................................................... xix
CHAPTER I. THE PROBLEM AND ITS SCOPE .............................................................1
1.1 Introduction ................................................................................................................1
1.1.1 Rationale of the Study.....................................................................................1
1.1.2 Theoretical Background ..................................................................................4
1.1.3 Flow of Research Process ...............................................................................6
1.2 The Problem ...............................................................................................................7
1.2.1 Statement of the Problem ................................................................................7
1.2.2 Statement of Assumptions ..............................................................................8
1.2.3 Significance of the Study ................................................................................9
1.3 Research Methodology.............................................................................................10
1.3.1 Research Environment ..................................................................................11
1.3.2 Research Respondents ..................................................................................12
1.3.3 Research Instruments ....................................................................................13

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1.3.4 Research Procedures .....................................................................................14
1.4 Definition of Terms ..................................................................................................15
CHAPTER II. COMPANY PROFILE AND ITS MICROENVIRONMENT ..................16
2.1 Company Logo and Location ...................................................................................16
2.2 Vision, Mission, Goals, Objectives and Values ........................................................17
2.3 Critical Success Factors and Strategic Approach .....................................................19
2.4 Business Model .........................................................................................................20
2.5 Microenvironment of the Company ..........................................................................24
2.6 Five Forces Model ....................................................................................................26
2.7 Strategy Statement ....................................................................................................29
2.8 SCOT Analysis (Strength, Challenge, Opportunities and Threats) ..........................30
2.9 Roadmap ...................................................................................................................33
2.10 Action Plan..............................................................................................................34
CHAPTER III. MARKETING ASPECT ..........................................................................36
3.1 Service Concepts ......................................................................................................36
3.1.1 Name and Uses of Service ............................................................................36
3.1.2 Market Preferences on Product Design ........................................................37
3.1.3 Pictorial Sketch .............................................................................................38
3.1.4 Exploded Drawing ........................................................................................40
3.1.5 Orthographic Drawing ..................................................................................41

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3.1.6 Features and Benefits of the Service .............................................................42
3.1.7 Characteristics of the Product ......................................................................43
3.2 Target Market ...........................................................................................................43
3.2.1 Catchment Area ............................................................................................43
3.2.2 Segmentation Basis .......................................................................................45
3.2.3 Buying Decision Behavior ............................................................................47
3.2.4 Buyer Decision Process ................................................................................48
3.2.5 Positioning Map ............................................................................................50
3.3 Population Information ............................................................................................52
3.4 Sample Size ..............................................................................................................53
3.5 Summary of Survey Results .....................................................................................53
3.6 Market Study Results ...............................................................................................73
3.6.1 Qualitative Demand Analysis .......................................................................73
3.6.2 Quantitative Demand Analysis .....................................................................74
3.7 Marketing Mix Decisions .........................................................................................80
3.7.1 Service...........................................................................................................80
3.7.2 Price ..............................................................................................................86
3.7.3 Placement ......................................................................................................92
3.7.4 Promotions ....................................................................................................94
3.8 Life Cycle Strategies ................................................................................................97

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3.8.1 Introduction Stage .........................................................................................97
3.8.2 Growth Stage ................................................................................................98
3.8.3 Maturity Stage...............................................................................................98
3.8.4 Decline Stage ................................................................................................98
CHAPTER IV. TECHNICAL ASPECT ...........................................................................99
4.1 Presentation and Analysis of Design Constraints .....................................................99
4.2 Production Process ...................................................................................................99
4.2.1 Manufacturing Process Type ........................................................................99
4.2.2 Process Flow Chart / IPO............................................................................100
4.2.3 Precedence Table ........................................................................................100
4.2.4 Precedence Diagram ...................................................................................101
4.2.5 Assembly Chart...........................................................................................101
4.2.6 Operations Chart .........................................................................................101
4.2.7 Process Schematic Diagram ........................................................................102
4.2.8 Floor Plan with Work Flow ........................................................................103
4.3 Work Cycle ............................................................................................................104
4.3.1 Cycle Time ..................................................................................................104
4.3.2 Number of Workstations .............................................................................108
4.3.3 Efficiency of the Line .................................................................................109
4.3.4 Final Output ................................................................................................109

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4.4 Production Capacity ...............................................................................................110
4.4.1 Manpower ...................................................................................................114
4.4.2 Machine.......................................................................................................114
4.4.3 Space Capacity ............................................................................................115
4.5 Master Production Schedule...................................................................................115
4.6 Materials Requirement Planning ............................................................................118
4.6.1 Product Structure Tree ................................................................................122
4.6.2 Materials Specification ...............................................................................122
4.6.3 Parts List .....................................................................................................124
4.6.4 Bill of Materials ..........................................................................................124
4.7 Design of Work Systems ........................................................................................128
4.7.1 Workstation Design ....................................................................................128
4.7.2 Work Environment......................................................................................131
4.7.3 Lumens Requirement ..................................................................................131
4.7.4 Ventilation Requirement .............................................................................133
4.7.5 Noise Level .................................................................................................133
4.7.6 Temperature ................................................................................................134
4.7.7 Housekeeping Policies ................................................................................134
4.7.8 Safety Standards..........................................................................................136
4.8 Operations Department Organizational Structure ..................................................143

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4.8.1 Organizational Chart ...................................................................................143
4.8.2 Key Management Personnel .......................................................................144
4.8.3 Manpower Requirement..............................................................................144
4.9 Product Costing and Pricing ...................................................................................145
4.9.1 Cost of Materials .........................................................................................145
4.9.2 Cost of Labor ..............................................................................................147
4.9.3 Cost of Overhead ........................................................................................148
4.9.4 Product Price ...............................................................................................150
4.10 Management of Quality ........................................................................................150
4.10.1 Attributes and Variables of Service ..........................................................151
4.10.2 Quality Control Points ..............................................................................153
4.10.3 Procedures for Controlling Quality ...........................................................154
4.10.4 Policies for Rework, Defects and Rejects .................................................156
4.11 Maintenance of Facilities and Equipment ...........................................................157
4.11.1 Maintenance of Production Facilities .......................................................157
4.11.2 Maintenance of Non-Production Facilities ...............................................158
4.11.3 Policies for Breakdown and Maintenance ................................................161
4.12 Materials Management System ............................................................................162
4.12.1 Raw Material Procurement System ..........................................................162
4.12.2 Warehousing Management System for Raw Materials ...........................164

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4.12.3 Inventory Control Procedure for Raw Materials ......................................166
4.12.4 Warehousing Management System for Finish Products ..........................167
4.12.5 Inventory Control Procedure for Finish Products .....................................167
4.12.6 Distribution of Finish Products ................................................................167
4.13 Supply Chain Model.............................................................................................169
4.13.1 Supplier Name and Location ....................................................................169
4.13.2 Customers Name and Location .................................................................170
4.14 Green Manufacturing Practices ............................................................................170
4.14.1 Types of Wastes Generated ......................................................................171
4.14.2 Methods of Waste Disposal ......................................................................171
4.14.3 Impact of Wastes to the Community ........................................................172
4.14.4 Policies for Waste Management ...............................................................173
4.14.5 Provisions for Sustainable Production ......................................................173
4.15 Plant Layout and Location ...................................................................................174
4.15.1 Structural Limitations ...............................................................................174
4.15.2 Space Constraints ......................................................................................175
4.15.3 Space Requirements ..................................................................................177
4.15.4 Worksheet and Activity Relationship .......................................................182
4.15.5 Space Allocations......................................................................................185
4.15.6 Summative Space Requirements and Allocations ....................................186

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4.15.7 Layout of Functional Areas ......................................................................186
4.15.8 Workflow Diagram ...................................................................................190
4.15.9 Floor Plan ..................................................................................................191
4.15.10 Location Plan and Analysis ....................................................................192
4.15.11 Simulation Analysis ................................................................................193
CHAPTER V. MANAGEMENT ASPECT .....................................................................194
5.1 Management During Pre-Implementation Stage ....................................................194
5.2 Management During Normal Operation.................................................................200
5.2.1 Form of Organization ..................................................................................200
5.2.2 Organizational Structure .............................................................................203
5.2.3 Personnel of Business .................................................................................204
5.2.4 Human Resource Programs.........................................................................209
5.2.5 Compensation Plan and Benefits ................................................................212
5.2.6 Management Policies and Regulations .......................................................216
CHAPTER VI. LEGAL AND TAXATION ASPECT ....................................................217
6.1 Legal Aspect ...........................................................................................................217
6.2 Taxation Aspect ......................................................................................................235
CHAPTER VII. FINANCING AND FINANCIAL.........................................................236
7.1 Financing Aspect ....................................................................................................236
7.1.1 Initial Capitalization....................................................................................236

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7.1.2 Pre Operating Expenses .............................................................................239
7.1.3 Operating Expenses ....................................................................................239
7.1.4 Sources of Initial Capitalization .................................................................240
7.2 Financial Aspect .....................................................................................................241
7.2.1 Projected Income Statements ......................................................................243
7.2.2 Projected Balance Sheets ...........................................................................245
7.2.3 Projected Statement of Cash Flows ............................................................246
7.2.4 Financial Performance ................................................................................248
CHAPTER VIII. SOCIO-ECONOMIC DESIRABILITY ASPECT ..............................253
8.1 Socio-Economic and Environmental .....................................................................253
8.2 Impact Assessment..................................................................................................253
8.3 Cost-Benefit Analysis .............................................................................................255
CHAPTER IX. SUMMARY, FINDINGS, RECOMMENDATIONS, AND
CONCLUSION ................................................................................................................256
Summary .......................................................................................................................256
Findings.........................................................................................................................256
Recommendations .........................................................................................................258
Conclusion ....................................................................................................................259
BIBLIOGRAPHY ............................................................................................................260
APPENDICES .................................................................................................................262
CURRICULUM VITAE ..................................................................................................265

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LIST OF TABLES
Table 1 Critical Success Factors and Strategic Approach .................................................19
Table 2 Business Model .....................................................................................................20
Table 3 Action Plan ...........................................................................................................34
Table 4 Features and Benefits of the Services ...................................................................42
Table 5 List of Competitors ...............................................................................................50
Table 6 Research Population Information .........................................................................52
Table 7 Number of Male and Female ................................................................................53
Table 8 Ages of the Respondents.......................................................................................54
Table 9 Number of Children ..............................................................................................55
Table 10 Monthly Incomes ...............................................................................................56
Table 11 Number of respondents who go to Salon ............................................................57
Table 12 Number of respondents who tried bringing their child into a salon ..................58
Table 13 Number of respondents who are Interested in Little Land Children Salon .......59
Table 14 Respondent‘s prefer time ...................................................................................60
Table 15 Characteristics of Little Land‘s service .............................................................61
Table 16 Kind of Salon .....................................................................................................62
Table 17 Number of respondents who are willing to refer to Little Land ........................63
Table 18 Number of respondents who like to try our new service ...................................64
Table 19 Type of Promotion .............................................................................................65
Table 20 Ages of Children ................................................................................................66
Table 21 Often visits in a salon with kids .........................................................................67

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Table 24 Payment for each service ...................................................................................70
Table 27 Growth of the Population ...................................................................................76
Table 28 Potential Market .................................................................................................77
Table 29 Actual Market ....................................................................................................78
Table 30 Annual Demands.................................................................................................78
Table 31 Estimated Demands per Day...............................................................................79
Table 32 Service MIX........................................................................................................80
Table 33 Life Cycle Strategies ...........................................................................................97
Table 34 Precedence Table ..............................................................................................101
Table 35 Cycle Time ........................................................................................................104
Table 36 Production Efficiency and Maximum Utilization Rate ....................................106
Table 37 Final Output ......................................................................................................110
Table 38 Service Capacity ...............................................................................................112
Table 39 Manpower Productivity ....................................................................................144
Table 40 Machine Capacity .............................................................................................144
Table 41 Master Production Schedule .............................................................................116
Table 42 Master Production Service Mix Schedule ........................................................117
Table 43 Materials Requirement Planning ......................................................................119
Table 44 Materials Specification .....................................................................................123
Table 45 Parts Lists..........................................................................................................124

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Table 46 Bill of Materials ...............................................................................................125
Table 47 Anthropometric Measurement of Filipino Workers for Standing ...................129
Table 48 Lumens Computation .......................................................................................132
Table 49 Personal Protective Equipment ........................................................................140
Table 50 Safety Signage‘s in the Company ....................................................................141
Table 51 Manpower Requirement ..................................................................................145
Table 52 Cost of Salon Furniture ....................................................................................145
Table 53 Cost of Salon Electric Equipment ....................................................................146
Table 54 Salon Manager Equipment ...............................................................................146
Table 55 Cost of Hair Salon Tools And Equipment .......................................................147
Table 56 Cost of Labor ...................................................................................................147
Table 57 Annual Cost of Labor ......................................................................................148
Table 58 Renovation Cost of Labor ................................................................................148
Table 59 Cost of Electricity ............................................................................................148
Table 60 Service Rate .....................................................................................................150
Table 61 Sales Projection ................................................................................................150
Table 62 Quality Control Points .....................................................................................153
Table 63 Procedure of Controlling Quality ....................................................................155
Table 64 Operating and Maintenance Supplies Economic Order Quantity ....................166
Table 65 Supplier Name and Location ...........................................................................169
Table 66 Functional Areas ..............................................................................................175
Table 67 Material Cost of Renovation ............................................................................176
Table 68 Salon Furniture ................................................................................................177

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Table 69 Salon Electric Equipment ................................................................................178
Table 70 Materials Inventory ..........................................................................................179
Table 71 Closeness Code ................................................................................................183
Table 72 Total Closeness Rating ....................................................................................184
Table 73 Space Allocations ............................................................................................185
Table 71 Total Space Area Required ..............................................................................186
Table 75 Location Plan and Analysis .............................................................................192
Table 76 Activities during the Pre-operating Period ......................................................194
Table 77 Precedence Table .............................................................................................195
Table 78 Critical Path .....................................................................................................199
Table 79 BIR Registration Procedures ...........................................................................227
Table 80 SSS Employer Registration Procedure ............................................................230
Table 81 PhilHealth Insurance Registration Process ......................................................232
Table 82 Food and Drug Administration Registration Process ......................................233
Table 83 Tax Obligation .................................................................................................235
Table 84 Fixed Assets .....................................................................................................237
Table 85 Pre-Operating Expense ....................................................................................239
Table 86 Operating Expense ...........................................................................................240
Table 87 Sources of Initial Capital .................................................................................241
Table 88 Amortization Schedule of Business Loan ........................................................241
Table 89 Projected Income Statements ...........................................................................243
Table 90 Projected Balance Sheet ...................................................................................245
Table 91 Projected Cash Flow ........................................................................................246

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Table 92 Net Profit Margin .............................................................................................248
Table 93 Asset Return .....................................................................................................249
Table 94 Return on Partner‘s Equity ...............................................................................249
Table 95 Projected Partner‘s Equity ................................................................................250
Table 96 Payback Period ................................................................................................252
Table 97 Sales Return and Fixed Return Asset Turnover ...............................................252

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LIST OF FIGURES
Figure 1 Flow of the Research Process ...............................................................................6
Figure 2 Research Environment ........................................................................................11
Figure 3 Location Map ......................................................................................................12
Figure 4 Flow of the Research Process .............................................................................14
Figure 5 Company Logo ...................................................................................................16
Figure 6 Microenvironment of the Company ...................................................................24
Figure 7 Five Forces Model ..............................................................................................26
Figure 8 Strategy Statement ...............................................................................................29
Figure 9 SCOT Analysis ...................................................................................................30
Figure 10 Roadmap ...........................................................................................................33
Figure 11 Pictorial Sketch .................................................................................................38
Figure 12 Exploded Drawing ............................................................................................40
Figure 13 Orthographic Drawing ......................................................................................41
Figure 14 Catchment Area .................................................................................................44
Figure 15 Exterior Design of Business Establishment .....................................................44
Figure 16 Market Segmentation ........................................................................................45
Figure 17 Types of Buying Decision Behaviour ...............................................................47
Figure 18 Buying Decision Process ..................................................................................48
Figure 19 Perception Map .................................................................................................51
Figure 20 Numbers of Male and Female ..........................................................................53
Figure 21 Ages of the Respondents ..................................................................................54
Figure 22 Numbers of Children ........................................................................................55

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Figure 23 Monthly Incomes ...............................................................................................56
Figure 24 Number of respondents who go to Salon .........................................................57
Figure 25 Number of respondents who tried bringing their child into a salon .................58
Figure 26 Number of respondents who are Interested in Little Land Children Salon ......59
Figure 27 Respondent‘s prefer time ..................................................................................60
Figure 28 Characteristics of Little Land‘s service ............................................................61
Figure 29 Kind of Salon ....................................................................................................62
Figure 30 Number of respondents who are willing to refer to Little Land .......................63
Figure 31 Number of respondents who like to try our new service ..................................64
Figure 32 Type of Promotion ............................................................................................65
Figure 33 Ages of Children ...............................................................................................66
Figure 34 Often visits in a salon with kids ........................................................................67
Figure 35 Often visits in a salon with kids .......................................................................68
Figure 36 Often visits in a salon with kids .......................................................................69
Figure 37 Payment for each service ..................................................................................70
Figure 40 Decision Tree ....................................................................................................76
Figure 41 Peak Demand ....................................................................................................79
Figure 42 Three Levels of Service ....................................................................................81
Figure 43 Little Land Interior Design ...............................................................................83
Figure 44 Employee Uniform ...........................................................................................84
Figure 45 Employee Apron ...............................................................................................84

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Figure 46 Haircut Cape .....................................................................................................85
Figure 47 Factors Affecting Decisions Policies and Approaches .....................................87
Figure 48 Pricing Policies and Approaches ......................................................................89
Figure 49 Pricing Strategy Matrix .....................................................................................91
Figure 50 Vicinity Map of Mactan Town Center, Basak Lapu-Lapu City .......................93
Figure 51 Marketing Communication Mix .......................................................................95
Figure 52 IPO of Little Land Children Salon .................................................................100
Figure 53 Precedence Diagram .......................................................................................101
Figure 54 Process Schematic Diagram ..........................................................................102
Figure 55 Little Land Floor Plan ...................................................................................103
Figure 56 Process Flow of Little Land ...........................................................................104
Figure 57 Product Structure Tree ....................................................................................122
Figure 58 Workstation Specifications ............................................................................130
Figure 59 Reaching Guidelines ......................................................................................131
Figure 60 Organizational Chart ......................................................................................144
Figure 61 Customer Satisfaction Survey ........................................................................152
Figure 62 Procedure of Controlling Quality ...................................................................154
Figure 63 Building System Maintenance Card ...............................................................158
Figure 64 Drainage System Maintenance Card ..............................................................159
Figured 65 Electrical System Maintenance Card ............................................................160
Figure 66 Breakdown and Maintenance Policy ..............................................................161
Figure 67 Little Land Salon‘s Layout .............................................................................165
Figure 68 Provisions of Pilferage ...................................................................................167

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Figure 69 Employee Pilferage Policy ..............................................................................168
Figure 70 Supply Chain Model .......................................................................................169
Figure 71 Waste Disposal Facility ..................................................................................172
Figure 72 Rented Commercial Space .............................................................................175
Figure 73 Activity Relationship Diagram .......................................................................183
Figure 74 Administrative Office .....................................................................................186
Figure 75 Storage Room ..................................................................................................187
Figure 76 Bathroom Area ...............................................................................................187
Figure 77 Reception Area ...............................................................................................188
Figure 78 Styling Area ....................................................................................................188
Figure 79 Dryer Area ......................................................................................................189
Figure 80 Shampoo Area ...............................................................................................189
Figure 81 Workflow Diagram .........................................................................................190
Figure 82 Floor Plan ......................................................................................................191
Figure 83 Location Plan ..................................................................................................192
Figure 84 Simulation Analysis .......................................................................................193
Figure 85 Network Diagram ..........................................................................................197
Figure 86 Project Duration Time ...................................................................................198
Figure 87 Organizational Structure ................................................................................203
Figure 88 Salon Manager‘s Job Description ...................................................................205
Figure 89 Bookkeeper‘s Job Description ........................................................................206
Figure 90 Utility Personnel‘s Job Description ................................................................207
Figure 91 Hair Stylist‘s Job Description .........................................................................208

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Figure 92 Human Resource Programs ............................................................................209
Figure 93 Company Policies and Regulations .................................................................216
Figure 94 Sample DTI Registration Form ......................................................................218
Figure 95 Sample Barangay Clearance ...........................................................................220
Figure 96 Application Form for New Business Permit ..................................................222
Figure 97 Sample Sanitary Permit ..................................................................................224
Figure 98 Environmental compliance certificate DENR sample ....................................225
Figure 99 Fire Safety Certification .................................................................................226
Figure 100 Employer Registration SSS Form R-1 ..........................................................229
Figure 101 PhilHealth Member Registration Form ........................................................231
Figure 102 Employee Data Record (ER1) Form ............................................................232
Figure 103 FDA Registration Form .................................................................................234

1
CHAPTER I
THE PROBLEM AND ITS SCOPE
The core part of this book encompasses the proposed project on its market feasibility.
From its broad sense, this part of the chapter presents the purpose of the study to different
subjects, the problem that within the success of the study, and the theories that triggered
the basis of the proposition.
1.1. Introduction
1.1.1. Rationale of the Study
In most developed countries, the services sector involves much more than
manufacturing (Li, Yang, & Wu, 2008). Lovelock, Patterson and Walker as cited in
Garzaniti, Pearce and Stanton (2011) contend services are transitory and perishable
cannot be inventoried and are therefore difficult for clients to visualize. Besides, these
researchers also stated that when there is high contact in services, people become an
integral part of the service experience since the person delivered the service often is the
service. Bowen (1990) classifies services into three distinct groups: high contact
customized, moderate contact non-personal and moderate contact standardized. For hair
salon industry, it is being categorized into the high contact customized groups where it
contains services directed at people and individually customized service solutions and the
interaction and services provided to customer will likely influence customer experience
which leads to satisfaction and hence fostering customer loyalty (Bowen, 1990).
2
Beauty has been one of the main concerns in history for many women in ages.
(Jayesh & Pradip, 2014, p. 52). The antecedent of the beauty salon can trace its roots
back to ancient Egypt, Greece, and Rome, wherein the first concept of hairstyling for
men and women was only attained by the wealthy. Since then, the concept of the beauty
salon has been constantly evolving and has had men and women become accustomed to
having their personal appearance taken care of in it throughout the years. The global
beauty business pervades the lives of men and women alike, influencing how we perceive
ourselves and what it is to be beautiful, it is specifically the trend in the Philippines. The
desire to beautify oneself is why beauty services are set up.
Furthermore, the beauty salon market in its current global situation is entering an
active period of prosperity where market competition is exceptionally intense. The beauty
salon industry underwent a series of dynamic changes and experimentations before it is
shaped to become a widely demanded industry that is expected to reach 5.4 billion USD
by 2023 (Mordor Intelligence, 2018), with the United States earning most revenue
worldwide (Statista, 2019). Growing consumer interest in professional hair care products,
hairstyling trends, marketing and promotional activities are the major factors in driving
sales (Mordor Intelligence, 2018).
As a result, consumers have favored professional salon products and services,
such as hair coloring services, over less costly alternatives sold in pharmacies and
supermarkets. In national context, the beauty industry is in its prosperous state, as
Filipinos want to look good and trendy. According to Villanueva (2018), the Philippine
beauty salon market is expected to grow annually by 1.6% around the years of 2019-
2023. In fact, according to the Philippines‘ Department of Labor and Employment

3
(2017), barbers, hairdressers and beauticians are in demand since the beauty and
grooming industry is rapidly growing, with the acceptance of under and non-college
graduate employees. In Cebu setting, the growing health and wellness industry and rapid
expansion of middle-income class, is giving more opportunities for foreign investors to
thrive (Cacho, 2015); and while the province is already catering a multi-racial clientele as
a major tourism destination, Cebu‘s salon industry in particular, does not place much
emphasis on proper hygiene, particularly on nail care (Dagooc, 2018).
‗Trickle-Down Theory‘ is seemingly working in The Republic of the Philippines.
The country has had the largest upward-surge in its modern-day history. The Beauty &
Grooming Industry in the Philippines has ignited a boom which has been heard all across
the world. In the 2016 Annual Survey of Philippine Business and Industry (ASPBI)
among industries, hair salon activities registered the highest number of establishments at
3,661. Hair salons are the most dynamic business in the country. One of the few –and
fastest growing – under and non-college grad required professional industries, is the hair
salon and barber industry. With over 15 million barber and beauty shops, as well as, an
army of barbers, stylists and juniors throughout the country, the multi-trillion-peso Mega
industry ranks in the top 5 careers: along with real estate, BPO/call centers and food &
beverage (F&B). (Comparably, a $75 Billion industry in the West.)
Furthermore, the greatest challenge lies internally within the business more so
than in the marketplace. Various salon establishments encounter diverse challenges such
as managing and motivating staff, getting new and retaining existing clients, marketing,
time management, and selling retail. Specifically, the Cebu beauty salon industry is
struggling with finding employees who are motivated, consistent and committed to
4
building the business. Moreover, marketing strategies and management practices must
also be improved to contend to the heightening competition in the industry. This research
intends to begin bridging the gap of understanding of the management practices used by
the business and its role on the development and improvement of the salon industry in the
local scene, and to develop an intervention program, which can be immediately used and
strategically applied by salon businesses, based on the results of this study.
1.1.2. Theoretical Background
This section presents the characteristics, importance and goals of Service
Marketing Theory in running a business.
Service Marketing Theory
The development of general theories or service marketing systems seems to have
followed two very different routes. According to one theory, the services provided by
service providers should be changed in a more efficient way, so that current marketing
strategies can be implemented (Bonoma and Mills, 1979). The other approach begins
with the idea that services are different from physical goods and that marketing concepts
and models need to be built in a more service-like manner (Gummesson, 1978)
Service marketing could be designed in such a way that it is tailored to the basic
characteristics of services and the marketing situation of service firms, enabling
marketing strategies to be applied which involve either product-like creation of offers and
product like marketing activities or some other, maybe more "service-like" development
(Gronroos, 1978). There are a number of service characteristics, some of which are more
5
important to certain service industries and others (Shostack, 2001). Nonetheless, there
tend to be at least three basic features: the service itself is physically intangible, it is an
operation rather than a thing, and development and consumption are simultaneous
activities, at least to some extent (Grönroos, 1982). Such basic characteristics of the
services make the marketing situation and the service firms' customer relationship
radically different from that of a consumer goods business. The latter form of business
customers usually only sees the company's product itself and the marketing mix activities
— place, price, and promotion — and the distribution channels. Service marketing
literature also sees the consumer as the service's co-producer, i.e., engaging in the
manufacturing cycle as the profit is only produced when the customer uses the service or
the nice. The role of this value-infuse model company in creating value is to support the
processes of customers by providing them with resources (Vargo and Lusch, 2008).
To understand the new position of marketing in a service business and
relationship context, it is important to start with a comprehension of what marketing can
achieve. In short, marketing targets can be formulated in three steps: (1) for first time
getting consumers to purchase products or services from a company; (2) provide such
consumers with these experiences with good services and other points of contact with the
business such that they are sufficiently pleased with the satisfaction of using the products
or services to consider purchasing the same product or services from the same
manufacturer or service provider again; and (3) To further cultivate the relationship with
these customers in order to give the supplier or service provider a greater share of not
only their wallet but also their heart and mind so as to create an emotional or attitudinal
link (Grönroos, 2002).

6
1.1.3. Flow of Research Process
INPUT PROCESS OUTPUT
Conceptualizati Data A Feasibility

on of Potential Interpretation Study of Little
Business and Analyzation Land Children
Structure Salon
Evaluating the
Company Logo data collected
and Location
Market study
Vision and
Mission of
Business Presenting the
findings of the
Survey study
Questionnaires
Market
strategies
Observation of
Salon for Kids
services
Figure 1 Flow of the Research Process
Figure 1 shows the flow of the research process. This involves the input of the
study that provides guide in doing the study, process that does the series of actions which
leads to a particular result called output.

7
1.2. The Problem
This chapter will tackle the statement of the problem that will eventually guide the
researchers to determine whether or not a certain plan of action is likely to produce the
anticipated result or is worth doing economically, will expound the significance in the
pursuit of the study and will clarify the scope and limitations of the study.
1.2.1. Statement of the Problem
The study intends to evaluate the feasibility of the proposed Children‘s Hair
Salon. Specifically, this study sought to answer the following questions.
1. Marketing Aspect
1.1 What is the target market of the children‘s hair salon?
1.2 What services does the business offer?
1.3 What are the business‘ supply and demand?
1.4 What marketing strategies can be applied on the business of children's hair
salon?
2. Management Aspect
2.1 What is the type of business organization suited for the project or business?
2.2 Who are the personnel of the business?
2.3 What are the company's policies and procedures?

8
3. Technical Aspect
3.1 What are the technical requirements needed in the operation of the proposed
business?
3.2 What are the equipment and materials needed for the business?
4. Legal and Taxation Aspect
4.1 What legal documents must be taken into account for the business?
5. Financial Aspect
5.1 How much capital needed for the project? Is the proposed business profitable?
5.2 What are the total expenses and the total sales of the business?
6. Socio-Economic and Environmental Aspect
6.1 What is the significance of the business to the Environment, Government and
the Society?
1.2.2. Statement of Assumptions
The researchers create the following list of assumptions in making the study. The
following assumptions are:
● Survey questionnaires are personally given to the respondents to be timely
relevant that will result into an outcome providing a basis of knowledge to
the questions and collect quantitative data. Researchers assumed that the
9
respondents are honest in answering the questionnaires and the answers
reflected are valid and reliable.
● Due to unavailability of other respondents, the research proponents
gathered only 276 samples instead of having a 300 of respondents and
assumed that this number represents the entire population.
● Considering that the research proponents cannot get the actual number of
kids and parents who is currently residing in Lapu-Lapu City visiting in
Mactan Town Center, the research proponents assumed that the nearby
barangay, namely Barangay Marigondon, Barangay Pajo, Barangay Gun-
ob and Barangay Pajac do have the probability to visit Mactan Town
Center.
1.2.3. Significance of the Study
The Salon for Kids is socially significant because it provides a comfortable and
engaging environment to the children who need haircut services. The following
stakeholders can benefit through the conduct of this study.
The Prospective Investors
This study will provide the prospective investors a business idea that will cater the
needs of children in hair salon industry. They can evaluate and assess this study to
determine if this will be feasible, worth investing in, and will generate more income to
them. This study will present the idea of Salon for Kids that might take the interest of
possible investors and will serve as a guide on how to penetrate this kind of business.
10
The Researchers
This research will assist the researcher in learning more about this type of
business, assessing the technicalities involved, and understanding the benefits and flows
of organizing this type of venture. The researchers will also gain more knowledge from
this study and will be able to apply their experience conducting feasibility studies in their
future careers as Industrial Engineers.
The Future Researchers
The findings of this study will be useful to future researchers who will be
involved in this type of business. The ideas presented here could be used as reference
data in new research or to test the validity of other related findings. These studies will
also serve as a cross reference for them, providing background and an overview of the
researcher's research.
1.3. Research Methodology
This section describes and discusses how the researchers will gather the necessary
data and information that will be used in the entire study. This includes Research
Environment, Research Respondents, Research Instruments and Research Procedures.

11
1.3.1. Research Environment
Lapu-Lapu City is highly urbanized city in the province of Cebu, posted a total of
population approximately 495 thousand. The target areas of the business are the
metropolitanism barangays in Lapu-Lapu City which are Agus, Babag, Bankal, Basak,
Buaya, Calawisan, Canjulao, Gun-ob, Ibo, Looc, Mactan, Maribago, Marigondon, Pajac,
Pajo, Poblacion, Punta Engaño, Pusok, Subabasbas.
Figure 2 Research Environment

12
In order to optimize the distribution of the network of the service, the children‘s
salon will be located in Mactan Town Center, Basak, Lapu-Lapu City, Cebu.
Figure 3 Location Map
1.3.2. Research Respondents
The respondents of this study are the number of parents‘ population with children
ages 12 and below in Lapu-Lapu City. Considering that the research proponents cannot
get the actual number of parents with children ages 12 and below, the research
proponents assumed that all individual that age ranges from 23 to 35 registered in the
Philippine Statistics of Authority are considered parents with children ages 12 and below
and do have a probability to benefit the services offered in Little Land Children‘s Salon.
13
1.3.3. Research Instruments
Research Instruments are measurement tools designed to gather data from
research subjects on a topic of interest. These research instruments will help the
proponents in obtaining valid and accurate data that will assess in evaluating the business
service of the researchers whether business idea is viable. The instruments the proponents
used to conduct the study and to collect data are as follows:
Survey Questionnaires
A questionnaire is an instrument consisting of a series of questions that must be
addressed to the survey participants. The proponents used a structured questionnaire to
administer the survey, which includes questions that support and assist the proponents in
gathering data to determine if such business is feasible.
Online and Personal Interview
Interviews are done mainly in qualitative research, which researchers ask general,
open-ended questions and are not arranged in order which record their responses to one
or more participants. The facts needed were obtained through interviews, provides more
reliable results, allow the interviewers to engage and connect with the participants.
Internet
The researchers have used the internet to gather additional notions that will help
them construct the analysis. Online source about the study was collected in order to look
for other relevant information required in the proposed study.

1.3.4. Research Procedures
Figure 4 Flow of the Research Process
The figure above presents the steps undertaken by the research proponents in order to analyze the objective of the study.
14
15
1.4. Definition of Terms
Children Salon - a type of hair styling business that caters to children, instead of
adults.
Haircut – an act or process of cutting and shaping the hair.
Hair Colour – the act of dyeing or tinting one's hair.
Hair Style – the work of cutting and arranging people's hair: the work of a
hairstylist.
Hair Treatment – any means of managing common hair related problems such as
hair fall, dryness, dandruff, frizzy hair.
Merchandise - the commodities or goods that are bought and sold in business.
16
CHAPTER II
COMPANY PROFILE AND ITS MICROENVIRONMENT
The youngest members of the family may be the apple of everyone‘s eyes, the cutest
and the most adorable creatures on Earth but they can turn into little imps when it‘s time
for grooming. Kids are hardest to manage when it‘s time to sit on the barber or salon
chair. There is something about the sight of the scissors and its snipping sound that scares
the wits out of them. At Little Land, it can be different. It will be ―kids play‖ for this
kiddie salon when the time of the month comes for the youngsters to style their locks.
From afar, Little Land looks like a playroom brightly colored, comic book murals cover
the four walls, cartoons showing on the television sets strategically placed in front of the
themed ―rides‖ a top-down convertible, army jeep, buggy or an F1 racing machine toy
cars that doubles as the barber chair. The look of playroom entices the kids to enter and
get into a relaxed, play mood while the mom and the staff ease them to the real purpose
of the visit.
2.1. Company Logo and Location
Figure 5 Company Logo

17
The figure presented above serves as the official logo of Little Land. The word
―Little Land‖ on the business name means that the business is intended only for children
hair care services. In addition to this, in the Philippines, hair salon industry of which
children‘s salon business belongs to is indeed a growing industry and pretty much
thriving. The cartoon scissor with male and female at the scissors handle represents that
the salon strictly caters children of ages 0 – 10 and it is in any gender. The proponents
also choose the color blue which represents both sky and the sea and is associated with
open spaces, freedom, intuition, inspiration, and sensitivity. It also represents the
meaning of depth, trust, sincerity, wisdom, confidence, stability, faith, and intelligence.
Further, the business‘ slogan ―Where haircuts are fun‖ means that the shop not just
provide the best haircuts services for children but also provide a fun environment where
the children can enjoy themselves and interact with other children.
2.2. Vision, Mission, Goals, Objectives and Values
Vision
―To expand our services and effectively cover the entire Cebu and other parts of the
country.‖
Mission
“To provide customers exceptional services, our commitment to quality, and our
service to our community.‖
Goals
Business Goals. Offer best and relaxing hair care services and develop exceptional
reputation in terms of service and quality with our customers and within the
community.
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Employee Goals. Provide a safe and productive atmosphere in which employees are
given access to equal opportunities for employment with a fair pay for work of equal
value.
Commitment to Customers. Treat customers with the utmost care and offer superior
customer relationships and address any and all customer concerns in every way to
meet their expectations.
Objectives
―To diversify and grow by seeking new customers and market opportunities
furthering current customer relationships.‖
Values
Lively. We remain enthusiastic and cheerful for the sake of our customer and be
successful in every aspect.
Improve. We always practice identifying, analyzing and improving existing process
to optimize performance and meet best practice standards.
Talented. We provide skillful staff
Trustworthy. We are honest, truthful and able to be relied on by our customers.
Lead. We manage to direct our goals by going in advance.
Excellence. In all we do, we hold ourselves to the highest standards.
Liberty. We always ensure that the customer will feel freedom in our care.
Accessibility. We always do our best to be made the customers feels that we are
approachable in all means of situations.
Novelty. We differentiate our service from the other as we offer new and original
service that would surely benefit the customers.

19
Dedicated. In a competitive market, we are devoted to a task or purpose which is to
survive and be the best in the field.
2.3. Critical Success Factors and Strategic Approach
This section presents and identifies the critical factors or activities required for
ensuring the success of the business. Critical Success Factors are those variables or
circumstances necessary to enable a positive outcome for a business program or strategy.
The CSFs are the expected causal variables of a particular desired result.
Table 1 Critical Success Factors and Strategic Approach
CRITICAL SUCCESS FACTORS KEY ACTIVITIES

Conduct market analysis, service
Differentiating the
strategy and planning, including
service against its
MARKETING advertising through social media sites
competitor.
and other forms of advertisement.
Providing a best hair salon service that
Providing customers
will satisfy customer‘s needs.
with a quality service
SERVICE Customer friendly staffs assisting and
that will encourage
QUALITY helping the customers in suggesting
customers to avail the
what is the best hairstyle and services
business.
to offer.
Discuss the company's Vision,
Mission, Goal and Values to the
Establishing a good
customers. Provide differentiation of
reputation that will make
REPUTATION the service offered against competitors
the customers avail the
that will leave an impact to the
service.
customers who then make them trust
and avail the service.
Following the business plan for the
Controlling the cost and survival and growth of the company.
PROFITABILITY managing the expenses Establishing a good service pricing
that will fit the budget. strategy that will enable the company
gain profit.
Primarily offers hair care services such
Aims to provide best and
SERVICES as haircut, hair color, and hairstyle
fun haircut service to
OFFERED services.
children.
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Utilizing a salon equipped with

Use fully advanced salon
FACILITIES AND advanced salon equipment making it
equipment along with an
EQUIPMENT offers a convenient and best service to
accessible shop location.
all customers.
Acquiring hardworking, Undergone trainings on the correct and
dependable, and skillful proper way of cutting hair and
EMPLOYEE workers since they will handling children. They will be
be the one providing the supervised to monitor any mistakes in
service. regards to the provision of the service.
2.4. Business Model
A business model is a framework for a company's effective operation that outlines
aspects such as finance, customer base, service, and income sources. This illustrates how
a company collects, generates, and delivers value. It records a business venture's basic
ideas and any important information. This section showed the customer segments, value
proposition, channels, customer relationships revenue streams, key resources, key
activities, key partners, and cost structures.
Table 2 Business Model
KEY KEY VALUE CUSTOMER CUSTOMER

PARTNERS ACTIVITIES PREPOSITION RELATIONSHIP SEGMENT
High Quality of
Service at low
cost
Low cost with
Commercial
Customer emphasis to fun
Property Students
Quality service and standard.
Competitors
Own Branding Low cost on
High volume Kids
Personal investment and
local Friendly and
Marketing earn reasonable
customers hospitable staffs By passers
Strategy and high profit
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REVENUE
KEY RESOURCES CHANNELS COST STRUCTURE
STREAM
Utilities Social media Labor
Manager, staff and Poster Supplier
crews Events and fair Electricity
Equipment Word of mouth Provision
Sales
Supplier recommendation Space rental
Customer Segments
Customer segmentation is one of the most important components of a company‘s
strategic plan, and understanding this could help a company be successful. The
Customized Events Place Service Company delivers customized events place based on
the customer‘s interests, needs, and wants.
Value Proposition
These are the services and products that provide value to the customer's life. The
company does this by fulfilling or satisfying the demands of its customers. It creates
value that can be delivered and appreciated. It's also a value that embodies why
customers should buy or use a product or service. It is an important part of a company's
marketing strategy for acquiring new customers and increasing revenue. The Customized
Events Place is ideal for consumers who want a small and affordable venue for a private
event.
Channels
Channels are an important part of the business model. They are the method
through which a company communicates with and engages its customer segments.
• Social Media Network
The company will create social media sites or profiles for online advertising and
appointments.
22
• Company Website
The company has a business website that will be used to provide information
about the company, its location, and the topics it offers.
• Emails
Used by the company to communicate with clients about bookings or concerns.
Customer Relationships
Customer Relationship refers to the kinds of relationships that a company has
developed with its varied customer segments. To increase profits, the organization must
build, maintain, and strengthen customer relationships. The company will build
connections with its customers by ensuring that they are treated properly by the
company staff, that the service or product is of high quality, that their questions are
answered, and that their feedback is applied to the service or product and the company
within.
Revenue Streams
The various ways in which a company makes a profit through the selling of its
products or services are referred to as revenue streams. The Customized Events Place
service produces revenue through paid service sales.
Key Resources
One of the most important aspects of a business model is an overview of the
most important assets needed to make a company model successful. The company
would not be able to operate without its location, facilities, and skilled staff and
workers.
23
Key Activities
These are the actions that a company must perform for its business model to
function. The Customized Event Place engages in marketing and event decoration.
Key Partners
The relationships that the company has with other businesses are referred to as
key partners. These are the relationships an organization has with its suppliers and
partners that allow the business model to function.
Cost Structures
It is an approach for determining how much it will cost an organization to
provide aid and how much value will be perceived from doing so. It refers to the types
and relative amounts of fixed and variable expenses that the company incurs. The
company contains information about the fees incurred to pay for venue rental, event
staff, room decoration, and other important charges.

24
2.5. Microenvironment of the Company
This section described the micro environmental, the microenvironment refers to the
forces that are close to the company and affect its ability to serve its customers. It
influences the organization directly. It includes the company itself, its suppliers,
marketing intermediaries, customer markets, competitors, and the public.
Company
Marketing
Suppliers Intermediarie
s
MICROENVIR
ONMENT OF
THE
COMPANY
Customers Competitors
Publics
Figure 6 Microenvironment of the Company
Suppliers
Suppliers play an important role in starting a business due to the fact that service
provision is deeply dependent on the availability of the materials and equipment required
to run the business. Salon for Kids suppliers includes DKCCO Incorporation which
25
supplies for salon furniture‘s, International Pharmaceuticals Incorporation for liniments,
soap, toiletry products, and Salon in Christian for hair and skin care products.
Marketing Intermediaries
Marketing intermediaries are those that assist in moving services from business to
customer which includes the personal marketing staff or agent Salon for kids to
communicate its presence to the customers and also developed a website in social medias
to make information readily available to target users.
Customers
In a business, customers are the main factor to consider. Potential customers of
Salon for Kids are obviously the kids who wants or needs salon particularly near in our
store area from Lapu-Lapu City.
Competitors
Competitors are those firms that offer the same services to the market. Little Land
has various competitors in the Cebu City and namely Coco Hair Studio, David‘s Salon,
Lady Gaga Hair Studio, Salon de Rose, Fix Bench Salon, Franzy Hair Salon, Fix Bench,
Tony and Jacky, Frashaire Salon, COLORBAR Salon and Day Spa, Manacor Korean
Salon, Expose Salon, nail a holies, Dreadlocks Derma clinic Beauty & Wellness Salon,
Bruno‘s Barbers, Pander Salon, Luce Hair Café which do offer salon services.
Public
Public are groups or organizations that are satisfied with the services which have
a significant impact on the marketing aspects of the business. These groups are those
26
parents who want their child or kids to avail our salon services as well as those others
who wants to avail our services and social media followers actual or potential interest in
the business.
2.6. Five Forces Model
This section discusses the five faces market/forces model of this study. The five
forces model is an analysis tool that uses five industry forces to determine the intensity of
competition and the level of profitability in a given industry. It is especially helpful when
starting a new business or entering a new industry.
Rivalry
among
Existing
Competitor
s
Potential
Bargaining Entry of
Power of New
Customers Competitor
FIVE s
FORCES
MODEL
Bargaining Entry of
Power of Substitute
Suppliers Services
Figure 7 Five Forces Model

27
Rivalry among Existing Competitors
This force investigates how fierce the current business competition is that is
determined by the number of established competitors and the capabilities of each
competitor. Rivalry is high when there are numerous competitors that are almost equal in
size and power, when the market is escalating slowly, and when customers can easily
change to the low-cost competitors.
Hair salons are involved in a competitive industry with diverse target markets.
There are salons or barber shops which the customer can choose from depending on their
desired services and prices. Although Little Land target a specific market, customers can
still go to other salon which can provide the service they seek. Hence, rivalry among
existing competitors is high.
Potential Entry of New Competitors
New entrants into a market bring new production capacity, the yearning to gain a
market foothold, and, in some cases, substantial resources with which to compete. These
new competitors could come from a variety of sources, including market areas or
segments you do not currently serve, indirect competitors with competing products,
customers, and suppliers. The potential for new competitors to enter a market is primarily
determined by entry barriers and the expected reaction of incumbent firms.
Potential threat for new competitors in hair salon industry can be perceived as
high. This industry can be easily entered by other entrepreneurs with enough skills and
training and does not also require high amount of money to start. Moreover, salons with
28
new ideas may enter, hair salons need to adopt an aggressive and calculated strategy if
they want to keep a competitive advantage in an industry that is diverse and always
evolving
Entry of Substitute Product/Service
The availability of services provided outside of the expanding market's bounds
enhances consumers' propensity to seek out alternatives. One should explore beyond
services that competitors brand in a different way to find these alternatives. Instead,
consideration should be given to any service that meets a comparable demand for
customers.
Hair salon services are a necessity to almost everyone and there are no alternative
services or product for this especially for the grooming or haircut services. Therefore, the
entry for substitute product/service is low.
Bargaining Power of Suppliers
This force examines the degree to which a supplier of a business has the ability to
raise prices or lower the quality of the goods or services acquired, hence lowering the
profitability potential of an industry. Hair salon services requires few materials to operate
and the prices for these are fairly stable. The supplies needed are also uniform in quality;
hence, the bargaining power of Little Land suppliers is low.
Bargaining Power of Customers
This force examines the extent to which customers might put the company under
pressure, which also has an impact on how receptive customers are to price changes.
29
Customers have a lot of power if there aren't many of them and if they have a wide range
of retailers to choose from. They should find it simple to switch companies as well.
Little Land offers services that are particular and unique for children. It differs
from other hair salons because it focuses on specific target market and provides customer
services exclusive to them. Hence, the bargaining power of customers is low.
2.7. Strategy Statement
In developing a new business or organization, it is critical to establish clear goals,
values, and areas of focus. Developing a strategy statement that clearly outlines an
organization‘s plans aids employees in understanding their role within the organization.
Strategy statements can help to communicate individual expectations, create effective
marketing plans, and set financial and customer service objectives.
Figure 8 Strategy Statement

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2.8. SCOT ANALYSIS (Strength, Challenge, Opportunities and Threats)
SCOT Analysis is a method used in strategic planning to help Little Land distinguish
strengths, weaknesses, opportunities and threats the framework offers an opportunity not
only to evaluate how well you are doing, but also to identify those gaps or areas that
require further planning or structures. This activity will help the company to be
constructive and to undertake informed organizational or planning decisions.
STRENGTHS CHALLENGES
Strong Service Differentiation Managing and Motivating Staff
Highly Skilled Staff Finding New Customer
Advance Salon Equipment Retaining Customer
Highly Visible Website
OPPORTUNITIES THREATS
Market Penetration Sudden Entry of Competitors
Service Area Expansion New Equipment of Competitors
New Equipment
Figure 9 SCOT Analysis

31
Strengths
Strengths define the strength of a company, and what separates it from the
competition. Such attributes help the business thrive in the market place. Some of Little
Land strong points are as follows:
● Strong differentiation in service offers the business an advantage in a
competitive market. This is accomplished by offering a new service and
stylish haircut that meets customer satisfaction.
● By involving the staff in effective training and learning programs, the
company builds up a highly skilled workforce. The company invests
considerable resources in its employee training and development resulting in a
workforce that is not only highly skilled but also motivated to accomplish
more.
● To further improve the competitive edge, the company embraces
technological advancement as it uses latest and advanced salon equipment that
enables the business to provide staffs with ease as well as offering great
services for customers.
● To maintain customer relationships, the company operates a highly visible
website that receives feedbacks, queries and complaints from customers and
gives them a fast response
Challenges
A challenge describes the undertakings of businesses in the course of service
provision. There are also areas in which. Little Land could improve. Strategy is to make
32
choices and challenges to the areas in which a company can improve and draw on its
competitive advantage and strategic positioning.
● Managing and motivating staffs was one of the challenges in a business,
especially when they had a few long, hard days and tired from their own
responsibilities. Staff will rarely share the same enthusiasm for their
workplace that an owner or manager does.
● Finding new customers is a big challenge for anyone because there‘s a great
deal of value in using social media and other ways of promoting your business
to get the word out about your salon, its services, and its products.
● Retaining customers is also a challenge to any business people also love to
share negative experiences, maybe even more than they love to share the
positive. Think about it this way: There are two important aspects to retaining
clients. Positive experiences will keep your clients coming back; negative
ones will drive them away. But even the best salon experience in the world
may not result in a repeat client if you don‘t stay in touch.
Opportunities
● As a start-up business, market penetration means that the business will fully
enter the market and be fully recognized by numerous salon owners in the
area, allowing diversity and growth for the business.
● In time, if the business continues to operate successfully, the expansion of the
service area is a better opportunity to serve new and additional customers and
enable the business to boost its profitability and gain additional market share.
33
● The new equipment offers the opportunity to bring differentiated pricing
strategy into practice in the new market. It will allow the company to maintain
its loyal customers with great service, and will attract new customers through
other value-oriented propositions.
Threats
Threats refer to factors that may harm a business. Little Land market disruptor
may pose a serious threat to the industry.
● Sudden entry of a competitor could pose a serious threat that could increase
the propensity of customers to shift to them and decrease the percentage of
your market share. Hence decreases profitability.
● In the medium to long term, new equipment introduced by the competitor or

market disruptor may pose a serious challenge to the industry.
2.9. Roadmap
Figure 10 Roadmap
34
2.10 Action Plan

Table 3 Action Plan
TIME SUCCESS
OBJECTIVES ACTIONS
FRAME MEASURE
• Opening the company

• Letting customers join to
answer surveys for their Customer
Product feedback Satisfaction
• Creating referral program 2022
Release
for new customers
• Creating social media
contents
• Improving the product Customer

according to the Satisfaction
feedbacks
Improvements • Improving promotional 2023 Increasing
strategies Demands
• Increasing the supply
according to the demand
Increasing
Loyal
• Increasing the quality Customers
• Strengthening loyalty
Setting market with customers 2024 High
shares • More advertisements percentage of
• Hiring expertise sales
• Choosing best location Branch-opening

for the new branch success
Opening new • Hiring new employees 2025
branch • Buying supplies and Attracting
inventories more
customers
• Generating new idea for a Customer

new product line release Satisfaction
New product
• Exclusive previews for 2026
line
the loyal customers Expanding
• Customer reviews from customers
35
the preview
• Using a special
introductory offer such as
buy one get one free
36
CHAPTER III
MARKETING ASPECT
This chapter goes over the marketing aspects of the product such as product
conceptualization, drawings/sketches, characteristics of the product. It also takes into
account the marketability of the product via market study, marketing mix decision, life
cycle strategies, maturity and decline stage.
3.1. Service Concept/s
This part discusses the conceptualization, planning, and organization of the product.
This includes the technicalities of the products, uses, features, and drawings/sketches.
This also defines material components of the product in order to improve its quality and
create a harmonious system for its production.
3.1.1. Name and Uses of the Service
Little Land, a hair salon that caters hair services to children, is fully equipped with
tools and equipment not only for the sake of salon services but also offers entertainment
and joy to kids. Little Land offers haircut, hairstyling, and all-natural hair coloring that is
very accommodating and solely focuses on the children. It also provides various
programs and features to keep the customers joyful. This will be available for the
customer of Cebu City particularly to the parents and guardians who wish to have hair
salon services to their kids without any worries.

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3.1.2. Market Preferences for Service Design
Cebu has consistently demonstrated a promising potential in terms of economic
growth and productivity rate, ranking as the best performing city in the Visayas. Due to
this, it is one of the best areas to start a business. In addition to the progress of the city,
residents also need more services with regards to their needs. One of these is providing
salon services to their children while having no worries and doubts. In this way, they can
also maximize their time if they can rely on the service provider that their kids are being
handled with care.
A hair styling establishment that focuses on children rather than adults is known
as a kids' salon. This kind of salon sets itself apart from the competition by offering a
setting that is kid-friendly and a service that is intended to allay worries. It aims to make
having a haircut enjoyable rather than dreadful. Parents may discover that their child is
terrified of getting their hair trimmed. Children frequently cry and behave badly, making
it challenging for the service provider to control the situation.
Kid salons may be the better option for most parents however there are still who
chooses the traditional barber shops as this is more available in every area and also much
cheaper. Having this in mind, Little Land will ensure to provide quality services in terms
of hair salon services and also give emphasis to the safety and security of the children.
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3.1.3. Pictorial Sketch

39
Figure 11 Pictorial Sketch

3.1.4. Exploded Drawing
Figure 12 Exploded Drawing
40
3.1.5. Orthographic Drawing
Figure 13 Orthographic Drawing
41
42
3.1.6. Features and Benefits of the Service
Table 4 below depicts the features and benefits of Little Land. According to the
definition, features are factual statements that aid in defining specific aspects and
characteristics of a good or service. Contrarily, advantages are the outcomes or effects
that customers will encounter as a result of utilizing your product or service – the main
reason why a potential customer decides to employ it in the first place.
Table 4 Features and Benefits of the Services
TYPES OF
SERVICES FEATURES BENEFITS
OFFERED
● Provides different option
Haircuts and For girls: Correction bangs, and style for various
Hairstyles haircut (one length), haircut preferences
(short, medium, and long hair), ● Haircuts and hairstyle
evening hairstyle designed for kids
● Safe and proper handling
For boys: Haircut 1 nozzle, haircut of materials for the
2 nozzles, haircut model, creative comfort of kids
cutting, edging, and pattern ● Creative styles
● Various options and
All-Natural Hair Glitters for hair, natural color colors to choose from
Coloring highlights, temporary hair colors, ● Safe and healthy for
colored clip in-hair extensions, children
semi-permanent dye ● Temporary and semi-
permanent are options
● Creative styling
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3.1.7. Characteristics of the Service
The qualities of the service will present opportunities and problems for the
company's marketing efforts. The company exhibits the qualities listed below:
● Offers quality hair care services to children.
● Provides an entertaining and comfortable environment to the customers.
● Trustworthy in taking care of children.
● Skilled hair care service providers
● Reasonable price
3.2. Target Market
In planning to venture a business it is not right to cater everyone without clearly
identifying the target market. Defining the target market is an essential step in the
development of the marketing plan. This makes the business more focused on the actions
towards the perfect customer for the business ventured.
3.2.1. Catchment Area
The catchment area, whether prospective or existing, is the geographic area from
which a service position draws its main customers. Catchment area analysis is an
important decision support method for evaluating and optimizing the distribution of your
service network. In order to and optimize the distribution of the service, the children‘s
salon will be stationed in Mactan Town Center, Basak Lapu-Lapu City. This has been
considered as the best location for the best area since the business will offer its service in
the most urbanized location of Lapu-Lapu City.

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Figure 14 Catchment Area
Figure 15 Exterior Design of Business Establishment

45
3.2.2. Segmentation Basis
Market segmentation is a research-driven business strategy that directs the way a
business divides its target market into smaller, more manageable groups based on the
common ground they share. To put it simply, customers in each market segment have
similar characteristics that businesses can utilize to maximize their marketing.
Children that go at Mactan Town Center,

MARKET SEGMENTATION
Geographic Basak Lapu-Lapu City
Demographic Male and female aged 2 to 10 years old
Children customers that want to have

Psychographic
both fun and great hair care services.
Customers that will avail the service pay

Behavioral for high price in the return for great and
clean haircut.
Figure 16 Market Segmentation
Segmentation
Geographic segmentation targets customers on the basis of a predefined
geographic boundary. Differences in interests, values, and preferences vary significantly
across towns, states, and nations, so marketers must understand and advertise these
differences accordingly. The target market of Little Land is segmented geographically
limited to children that go at Mactan Town Center, Basak Lapu-Lapu City.

46
Demographic Segmentation
Demographic segmentation divides a market by variables such as age, gender,
income, and more. This type of segmentation is a widely used strategy due to the extreme
catering of specific products for obvious individual needs relating to at least one
demographic element. The target market of Little Land is segmented demographically
limited to children male and female that age 2 to 10 years old.
Psychographic Segmentation
Psychographic segmentation focuses on the intrinsic characteristics that the target
customer possesses. Psychographic characteristics vary from beliefs, personalities,
interests, behaviors, motivators of consciousness and sub-consciousness, lifestyles and
opinions. Little Land targets those children‘s customers that want to have both fun and
great hair care services.
Behavioral Segmentation
Behavioral segmentation has similar measures to psychographic segmentation but
focuses on specific responses and how customers go through their way of decision
making and buying. Attitudes towards your brand, how they use it, and their knowledge
base are all examples of behavioral segmentation. Little Land targets those children‘s
customers that will avail the service pay for high price in the return for great and clean
haircut.
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3.2.3. Buying Decision Behavior
Understanding buying decision behavior is crucial for successful marketing of
Little Land. In this study, buying decision behavior is defined as buying behavior of
customers specifically the children who make use of the hair care services. One of
marketing's core functions is to connect buyers and sellers in the most productive and
successful manner possible. This can be classified into four groups: complex, variety-
seeking, dissonance-reducing and habitual buying behavior.
Figure 17 Types of Buying Decision Behaviour
It has been identified that most of the potential customers of Little Land has a
variety seeking buying behavior wherein customer‘s involvement is very low but there
are significance differences among brands. This is because customers typically avail the
services of the nearest children‘s salon regardless of the salons name or brand.
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3.2.4. Buyer Decision Process
Buyer or customer decision-making process helps markets identify how
customers complete the transition from understanding a service to making a decision on
the offer. Understanding the buying process of the consumer will allow Little Land to
draw up a marketing plan that will convince them to avail the service
Figure 18 Buying Decision Process

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Problem Recognition
During identification of need or problem, customers recognize a problem or need
that a product or service on the market may fulfill. At this stage, the customer recognizes
a need or problem by the time they would notice their kid hair is long and needs a haircut
or other hair care services.
Information Search
Once the need is recognized, the customer is eager to acquire more information
and move into the search stage for the information. Customers would look for the nearby
children salon after recognizing the hair problem, which would then help with their
problem. However, Little Land is the only children salon in Lapu-Lapu City and there are
other children salons but the location is in Mandaue City which is a long way drive. So,
customers can seek and phone call a for appointment for convenience when they arrive or
just walk-in to the salon.
Evaluation of Alternatives
With the information in hand, the customer proceeds to alternative evaluation,
during which the information is used to evaluate brands or names in the set of choices.
Various points of information gathered from different sources are used to evaluate
different alternatives and their attractiveness. Different customers use different bases
when evaluating services. Generally, customer evaluate the alternatives on the like
convenience of the children salon, reliability and quality of hair care services, amount of
service fee and most especially the duration of the service.

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Purchase Decision
After evaluating the alternatives, customers make the decision to avail services.
At this stage parent would choose or decide where to bring their kid based on the set
criteria. Parent chooses to avail the services offered Little Land since its more
convenient, good accommodation, and great hair care services.
Post-Purchase Evaluation
In the final stage of the buyer decision process, post purchase behavior, the
customer makes a decision based on satisfaction or dissatisfaction. In this stage, the
customer determines if they are satisfied or dissatisfied with the hair care services, they
had through posted their comments and feedbacks on Little Land official website.
3.2.5. Positioning Map
Positioning refers to the customers‘ perception of a product in relation to its
competing product. Positioning map is a graphical tool for examining and analyzing the
positions or perceptions of each group of competing products regarding two specific
product characteristics.
Table 5 List of Competitors
NUMBER COMPETITOR NAME

CUT Encarnacion Group of Salon – Pejic
C1
Branch
C2 Summer Cut 101
C3 Hair Avenue Salon
C4 Breth Salon
C5 J2 Salon
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C6 J&R Beauty Salon

C7 High-gene Beauty Clinic & Salon
C8 BeutyCclim
C9 Franzy Hair Salon
C10 Euron Hair Salon
C11 Cut
C12 Previa Premium Salon
C13 887 Rebonding Digital Beauty Chateau
C14 La Vean Salon
C15 M & M Home Salon
C16 Salon De Rose
C17 Albert Hair Studio
C18 Francis Ortiz
C19 Ric D Salon
Figure 19 Perception Map
In comparison with competitors, Little Land is positioned on the right axis which
means that it offers the high serviceability but with an affordable service pricing.
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3.3. Population Information
The respondents of this study are the number of parents‘ population with children
ages 12 and below in Lapu-Lapu City. Considering that the research proponents cannot
get the actual number of parents with children ages 12 and below, the research
proponents assumed that all individual that age ranges from 18 to 45 registered in the
Philippine Statistics of Authority are considered parents with children ages 12 and below
and do have a probability to benefit the services offered in Little Land Children‘s Salon.
Table 6 Research Population Information
LAPU – LAPU CITY POPULATION GROWTH

Age
Grou 2015 2016 2017 2018 2019 2020 2021 2022 2023
18-25 43,384 44,664 45,941 47,329 48,715 50,099 51,487 52,872 54,151
26-30 40,361 41,552 42,740 44,031 45,321 46,608 47,899 49,188 50,378
31-35 35,151 36,188 37,223 38,347 39,471 40,592 41,716 42,838 43,875
36-40 30,595 31,498 32,398 33,377 34,355 35,330 36,309 37,286 38,188
41-45 23,912 24,617 25,321 26,086 26,850 27,613 28,378 29,141 29,847
173,40 178,51 183,62 189,16 194,71 200,24 205,78 211,32 216,43

Total
3 8 4 9 2 2 9 4 8
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3.4. Sample Size
The land area is about 25.18 square kilometers with its population of 364,116
residents based on the 2020 Census. It is represented by 4.51% of the Central Visayas
population. Given the population data in Table 1 Population and Sample Size, the
researchers will be able to find estimated sample size out of the population size given in
2020 Census, with the possible proportion (p) of 0.50, margin of error with 0.05,
sampling error (e) of 0.05 at 95% and confidence level (z) 1.96 at 95%.
3.5. Summary of the Results
Part One
Table 7 Number of Male and Female
GENDER FREQUENCY PERCENTAGE

Male 82 27.33%
Female 218 72.67%
Male
Female
27%
73%
Figure 20 Numbers of Male and Female

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Table 7 and figure 20 shows the frequency and percentage of the gender of the
respondents who responds to our survey. Out of 300 respondents, female is higher
percentage with 218 or 72.67% than of the male with 82 or 27.33%.
Table 8 Ages of the Respondents
AGE FREQUENCY PERCENTAGE

18 – 27 years old 83 27.67%
28 – 37 years old 91 30.33%
38 – 47 years old 67 22.33%
48-57 years old 36 12%
58 – above tears old 23 7.66%
18-27
28-37
8%
12% 28%
38-47
48-57
58 – above
22%
30%
Figure 21 Ages of the Respondents
Table 8 and figure 21 shows the frequency and percentage of age of the
respondents who responds to our survey. Out of 300 respondents, 28 - 37 years old is the
highest percentage with 91 or 30.33% while 58 & above years old is the lowest
percentage with 23 or 7.66%.

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Table 9 Number of Children
CHILDREN FREQUENCY PERCENTAGE

Only 1 141 47%
2 110 36.67%
3 32 10.67%
4 14 4.67%
5 3 1%
6 0 0%
7 0 0%
8 & above 0 0%
Only 1
2
0%
1%
5% 3
11% 4
5
47%
6
36% 7
8 & above
Figure 22 Numbers of Children
Table 9 and figure 22 shows the frequency and percentage of how many children
they have of the respondents who responds to our survey. Out of 300 respondents, only 1
child is the highest percentage with 141 or 47% while 6, 7, 8 & above years old are the
lowest percentage with 0 or 0%.

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Table 10 Monthly Incomes
MONTHLY INCOME FREQUENCY PERCENTAGE

Less than ₱10,000 32 10.67%
₱10,000 – 20,000 167 55.67%
₱21,000 – 30,000 45 15%
₱31,000 – 40,000 39 13%
₱41,000 – above 17 5.67%
₱10,000 – 20,000
₱21,000 – 30,000
6% 11%
13%
₱31,000 – 40,000
15% ₱41,000 – above
55%
Figure 23 Monthly Incomes
Table 10 and figure 23 shows the frequency and percentage of monthly income of
the respondents who responds to our survey. Out of 300 respondents, ₱10,000 – 20,000 is
the highest percentage with 167 or 55.67% while ₱40,000 – above is the lowest
percentage with 17 or 5.67%.

57
Part Two
Question 1 Do you go to Salon?
Table 11 Number of respondents who go to Salon
DO YOU GO TO
FREQUENCY PERCENTAGE
SALON?
Yes 239 79.67%
No 61 20.33%
Yes
No
20%
80%
Figure 24 Number of respondents who go to Salon
Table 11 and figure 24 shows the frequency and percentage of the respondents
who responds to the question number 1 ―Do you go to Salon?‖. Out of 300 respondents,
239 or 79.67% answered ―Yes‖ while 61 or 20.33% answered ―No‖.

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Question 2.Have you tried bringing a child into a salon?
Table 12 Number of respondents who tried bringing their child into a salon
HAVE YOU TRIED

BRINGING A CHILD FREQUENCY PERCENTAGE
INTO A SALON?
Yes 46 15.33%
No 254 84.67%
Yes
No
15%
85%
Figure 25 Number of respondents who tried bringing their child into a salon
who responds to the question number 2 ―Have you tried bringing a child into a salon?‖.
Out of 300 respondents, 46 or 15.33% answered ―Yes‖ while 254 or 84.67% answered
―No‖.
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Question 3.Are you interested in Little Land Children’s Salon?
Table 13 Number of respondents who are Interested in Little Land Children Salon
ARE YOU INTERESTED

IN LITTLE LAND FREQUENCY PERCENTAGE
CHILDREN’S SALON?
Yes 278 92.67%
No 22 7.33%
7%
93%
Figure 26 Number of respondents who are Interested in Little Land Children Salon
who responds to the question number 3 ―Are you interested in Little Land Children’s
Salon?‖. Out of 300 respondents, 278 or 92.67% answered ―Yes‖ while 22 or 7.33%
answered ―No‖.
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Question 4 If you were tour new service, what time would you prefer?
Table 14 Respondent’s prefer time
IF YOU WERE TOUR

NEW SERVICE, WHAT
TIME WOULD YOU
PREFER?
Morning 203 67.67%
Afternoon 97 32.33%
Morning
Afternoon
32%
68%
Figure 27 Respondent’s prefer time
who responds to the question number 3 ―If you were tour new service, what time would
you prefer?‖. Out of 300 respondents, 203 or 67.67% answered ―Morning‖ while 97 or
32.33% answered ―Afternoon‖.

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Question 5 What characteristics would attract you to get our new service?
Table 15 Characteristics of Little Land’s service
WHAT
CHARACTERISTICS
WOULD ATTRACT YOU FREQUENCY PERCENTAGE
TO GET OUR NEW
SERVICE?
Quality 68 22.67%
Smell 56 18.67%
Price 138 46%
Worker 38 12.67%
Quality
Smell
Price
13%
22%
Worker
19%
46%
Figure 28 Characteristics of Little Land’s service
who responds to the question number 5 ―What characteristics would attract you to get
our new service?‖. Out of 300 respondents, Price has the highest percentage with 138 or
46% while Worker has the lowest percentage with 38 or 12.67%.

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Question 6 What kind of salon do you prefer?
Table 16 Kind of Salon
WHAT KIND OF
SALON DO YOU FREQUENCY PERCENTAGE
PREFER?
Convenient and Fast 178 59.33%
Well detailed and vibrant 103 34.33%
Other 19 6.33%
Convenient and Fast

Well detailed and vibrant
6%
Other
34%
60%
Figure 29 Kind of Salon
who responds to the question number 6 ―What kind of salon do you prefer?‖. Out of 300
respondents, being a Convenient and fast has the highest percentage with 178 or 59.33%
while Other has the lowest percentage with 19 or 6.33%.

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Question 7 Are you willing to refer to our new business Little Land Children’s Salon?
Table 17 Number of respondents who are willing to refer to Little Land
ARE YOU WILLING TO

REFER TO OUR NEW
BUSINESS LITTLE FREQUENCY PERCENTAGE
LAND CHILDREN’S
SALON?
Yes 251 83.67%
No 49 16.33%
Yes
No
16%
84%
Figure 30 Number of respondents who are willing to refer to Little Land
who responds to the question number 7 ―Are you willing to refer to our new business
Little Land Children’s Salon?‖. Out of 300 respondents, 251 or 83.67% answered ―Yes‖
while 49 or 16.33% answered ―No‖.

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Question 8 If that’s so, would you like to try our new service?
Table 18 Number of respondents who like to try our new service
IF THAT’S SO, WOULD

YOU LIKE TO TRY FREQUENCY PERCENTAGE
OUR NEW SERVICE?
Yes 273 91%
No 27 9%
Yes
No
9%
91%
Figure 31 Number of respondents who like to try our new service
who responds to the question number 8 ―If that’s so, would you like to try our new
service?‖. Out of 300 respondents, 273 or 91% answered ―Yes‖ while 27 or 9% answered
―No‖.
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Question 9 What type of promotion would you prefer with a new service?
Table 19 Type of Promotion
WHAT TYPE OF
PROMOTION WOULD
YOU PREFER WITH A
NEW SERVICE?
Word of Mouth 29 9.67%
Internet 170 56.67%
Referral 34 11.33%
Social Marketing 67 22.33%
Word or Mouth
Internet
10% Referral
22%
Social Marketing
11%
57%
Figure 32 Type of Promotion
who responds to the question number 9 ―What type of promotion would you prefer with a
new service?‖. Out of 300 respondents, Internet has the highest percentage with 170 or
56.67% while Word of Mouth has the lowest percentage with 29 or 9.67%.
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Question 10 What is the age of your kid/s?
Table 20 Ages of Children
WHAT IS THE AGE OF YOUR

KID/S?
0 – 3 years old 16 5.33%
4 – 8 years old (boys) 63 21%
4 – 8 years old (girls) 78 26%
9 – 12 years old (boys) 61 20.33%
9 – 12 years old
82 27.33%
(girls)
0 – 3 years old
4 – 8 years old (boys)
5%
4 – 8 years old (girls)
28% 21%
9 – 12 years old (boys)
9 – 12 years old (girls)
20% 26%
Figure 33 Ages of Children
who responds to the question number 10 ―What is the age of your kid/s?‖. Out of 300
respondents, 9 – 12 years old (girls) has the highest percentage with 82 or 27.33% while
0 – 3 years old has the lowest percentage with 16 or 5.33%.

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Part 3
Question 11 How often do you visit a salon with your kid/s?
Table 21 Often visits in a salon with kids
Haircut
HOW OFTEN DO YOU

VISIT A SALON WITH FREQUENCY PERCENTAGE
YOUR KID/S?
Once a week 19 6.33%
Once a month 129 43%
Every 2 months 65 21.67%
Semiannual 57 19%
Once a year 30 10%
Once a week
Once a month
10% 6%
Every 2
19% months
Semiannual
43%
22%
Figure 34 Often visits in a salon with kids
who responds to the question number 11 ―What is the age of your kid/s?‖ in terms of
Haircut. Out of 300 respondents, once a month has the highest percentage with 129 or
43% while Once a week has the lowest percentage with 19 or 6.33%.
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Hairstyle
HOW OFTEN DO YOU

YOUR KID/S?
Once a week 3 1%
Once a month 28 9.33%
Semiannual 104 34.67%
Once a year 76 25.33%
Once a week
Once a month
1%9%
25% Every 2
months
30%
Semiannual
35%
Hairstyle. Out of 300 respondents, semi-annual has the highest percentage with 104 or
34.67% while once a week has the lowest percentage with 3 or 1%.
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Other Style
HOW OFTEN DO YOU

YOUR KID/S?
Once a week 4 1.33%
Once a month 58 19.33%
Semiannual 92 30.67%
Once a year 33 11%
Once a week
Once a month
11%1%
19% Every 2
months
31%
Semiannual
38%
Other Style. Out of 300 respondents, Every 2 Months has the highest percentage with 113
or 37.67% while Once a week has the lowest percentage with 4 or 1.33%.
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Question 12 About how much will you pay for each services?
Table 24 Payment for each service
Haircut
ABOUT HOW MUCH

WILL YOU PAY FOR FREQUENCY PERCENTAGE
EACH SERVICE?
₱50 - 100 234 78%
₱100 - 200 39 13%
₱200 - 500 23 7.67%
₱500 – 1,000 4 1.33%
₱50 - 100
₱100 - 200
8%1% ₱200 - 500
13%
₱500 – 1,000
78%
Figure 37 Payment for each service
who responds to the question number 12 ―About how much will you pay for each
services?‖ in terms of Haircut. Out of 300 respondents, ₱50 – 100 has the highest
percentage with 234 or 78% while ₱500 – 1,000 has the lowest percentage with 4 or
1.33%.
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Hairstyle
ABOUT HOW MUCH

EACH SERVICE?
₱50 - 100 198 66%
₱100 - 200 45 15%
₱200 - 500 38 12.67%
₱500 – 1,000 19 6.33%
₱50 - 100
₱100 - 200
6% ₱200 - 500
13%
₱500 – 1,000
15%
66%
services?‖ in terms of Hairstyle. Out of 300 respondents, ₱50 – 100 has the highest
6.33%.
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Other Style
ABOUT HOW MUCH

EACH SERVICE?
₱50 - 100 165 55%
₱100 - 200 54 18%
₱200 - 500 52 17.33%
₱500 – 1,000 29 9.67%
₱50 - 100
₱100 - 200
10% ₱200 - 500
17% ₱500 – 1,000
55%
18%
services?‖ in terms of Other Style. Out of 300 respondents, ₱50 – 100 has the highest
9.67%.
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3.6. Market Study Result
Market survey is the survey research and analysis of the market for a particular
product/service which includes the investigation into customer inclinations. Market
surveys are tools to gather feedback directly from the target audience in order to
understand their characteristics, expectations, and requirements.
According to the survey result of 100 respondents from Lapu-Lapu City shows that
the frequency of availing the service has a higher range. The future of the service offered
will be depending on the customer‘s requirement. Thus, marketing the actual service to a
very competitive environment of the market.
3.6.1. Qualitative Demand Result
The calculation of non-quantifiable data derived from the sample is qualitative
analysis. The data may be as follows: credibility, image, feelings of the client or
employee about the business or the service provided. This section quantifies the level of
demand out of the qualitative data available.
Furthermore, the Little Land doesn‘t have the strong level of brand‘s image since
the business is new to the market. Based on survey, the researchers determine that the
consumer wanted to try the service offered and created a website and social media to
have an interaction with the customers since the services focused on online basis.
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3.6.2. Quantitative Demand Analysis
Quantitative Research makes the discovery of which events can be real and only
occurrence of chance reflections on a language or variety's behaviour. The more
fundamental task of looking at the variety of single languages helps one to understand
correctly the frequency and rareness and hence their normality or abnormality in other
circumstances.
It is basically the evaluation of data through quantitative approach. These data are
the results from the survey that the researcher conducted for the study. This will measure
their behaviour and from it, the researcher will project results like the annual demand,
growth of the market and sales of the business.
3.6.2.1. Demand Analysis
Demand analysis is research conducted to assess or determine the customer's
demand for a product or service on the particular market. One important factor is a
demand analysis for a range of business decisions such as revenue forecasting, pricing
goods or services, marketing and advertisement spending, production decisions,
expansion planning. In addition, a demand study for a new company will assess if the
sector has substantial demand, and with additional details such as competition numbers,
size competitors, industry growth it helps decide if the business can enter the market to
produce sufficient income to sustain and promote its operations.
The demand assumption based on the survey on the Little Land services will
remain constant as the customer‘s willingness to avail the service and ownership of the
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service. The future of the business demands dictates the rising decision of the customers
upon the willingness to avail the service. Demand computation is according to the
answers of the respondent‘s willingness to avail the service multiplied by the number of
the children. Lastly, the result from the willingness to avail the service will multiplied by
the frequency of availing the service.
Demand Assumption
1. No change in customer preference. The preference of the service does not change
throughout the succeeding 5 years.
2. No change in size and composition of population. The population size of the
certain target market is fixed for the following 5 years.
3. No change in customer behavior if there is new entrant. The customer of the
service of the consumer behavior is still the same for the following years.
3.6.2.2. Growth Rate
Formula for getting population growth rate is:
Percentage Growth Rate (i) = [ Vpresent – Vpast ÷ 5] x100
Vpast
Percentage Growth Rate (i) = [ 68,156 – 29,965 ÷ 5] x100
29,965
Percentage Growth Rate (i) = 25.49%

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Table 27 Growth of the Population
YEAR 2010 2015 2020 2025

Percentage
Growth Rate 25.49% 19.71% 3.21%
Population 29,965 68,156 135,307 154,033
Lapu-Lapu City 29,965 68,156 135,307 154,033
3.6.2.3. Decision Tree
A decision tree is a mathematical model used to help managers make decisions. A
decision tree uses estimates and probabilities to calculate likely outcomes. A decision tree
helps to decide whether the net gain from a decision is worthwhile
The figure depicts the decision making of the researcher whether how many
potential customers are there in pet boarding business and how many available markets
the researcher can actually have in order for the business service profitable.
Figure 40 Decision Tree

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The figure depicts the decision making of the researcher whether how many
potential customers are there in pet boarding business and how many available markets
the researcher can actually have in order for the business service profitable.
3.6.2.4. Potential Market
The potential market is the total of the demand computation added by the demand
answered on the persuaded question. Potential markets are the main component of the
future growth of a business. A potential market is a consumer group which has the same
degree of interest in market offer. The potential market for the business is for all the
bypasses of Lapu-Lapu City especially tourist.
Table 28 Potential Market
ARE YOU
INTERES
TYPE OF TOTAL DO YOU TED IN
GENDE
SERVIC POPUL GO TO LITTLE POTENTIAL
R
E ATION SALON? LAND MARKET
CHILDRE
N SALON?
YES NO YES NO
Wash 12.30% 52,191.13
Girls
Cut 22.20% 92,338.33
Services
Blow Dry 20.60% 84,308.91
Wash 10% 40,147.10
Boys 93% 7%
Cut 135,307 64% 36% 19.90% 80,294.20
Services
Blow Dry 15% 60,220.65
3.6.2.5. Available Market
The available market is from the answer of the computation from the demand per
growth rate forecast to the percentage of market share. Available market is defined as the
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number of people both willing and able to purchase a specific product or service in given
market. The available markets are those who said yes or willing to purchase the service
and is built upon the results of the survey conducted by the proponents. The available
market in which individuals surely avail the services is our composed of 120,441 or 30%
of the potential market.
Table 29 Actual Market
TYPE OF AVAILABLE MARKET ACTUAL

GENDER
SERVICE MARKET SHARE MARKET
Wash 12.30% 14,452.92 2,457.01

Girls
Cut 22.20% 26,497.02 4,504.49
Services
Blow Dry 20.60% 25,292.61 4,299.81
Wash 10% 12,044.10 2,047.48
Boys 16.94%
Cut 19.90% 24,088.20 4,094.96
Services
Blow Dry 15.00% 18,066.15 3,071.22
3.6.2.6. Estimated Annual Demand
Table 30 Annual Demands
FREQUENCY PER YEAR

TOTAL
ESTIM ESTIM ESTIM
1-2 2-3 4-5 ESTIM
ATED ATED ATED
TYP ACT PE PE PE ATED
ANNU ANNU ANNU
GEN E OF UAL R R R ANNU
AL AL AL
DER SER MAR WE WE WE AL
DEMA DEMA DEMA
VICE KET EK EK EK DEMA
ND ND N
ND
2,457. 1.20 12.4 5.90
Wash 24.57 294.84 147.42 466.83
01 % 7% %
Girls
4,504. 1.05 5.03 4.67
Servi Cut 45.05 225.20 180.16 450.41
49 % % %
ces
Blow 4,299. 1.98 10.9 2.09
85.98 472.89 85.98 644.85
Dry 81 % 0% %
79
2,047. 0.50 11.4 7.48

Wash 20.47 225.17 143.29 388.93
48 % 2% %
Boys
4,094. 1.33 6.68
Servi Cut 40.95 4.95 163.80 286.65 491.40
96 % %
ces
Blow 3,071. 0.64 15.2 5.58
30.71 460.65 124.26 615.62
Dry 22 % 3% %
Table 31 Estimated Demands per Day
ACTUAL
YEAR DEMAND MARKET SHARE
MARKET
2020 3058.04 -
2021 3342.13 9
2022 3652.62 10
2023 3991.94 11
2024 4362.80 9.29% 12
2025 4768.10 13
Figure 41 Peak Demand

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3.7. Marketing Mix Decision
This section presents the set of actions or techniques that the business uses in order to
promote the brand to the market. Marketing mix is typically consisting of four key
elements: Product, Price, Promotion and Place. It helps and guides the business on how to
bring your service in the market.
3.7.1. Service
Services are a form of product consisting of activities, benefits offered at a price,
and are basically intangible and do not result in the ownership of anything. Services too
like products also satisfy customer needs and create value.
Service Mix
A service mix is mainly composed of all types of services offered by a particular
company. It is a selection of services that have been planned and developed to offer
consumers a choice within a given array. Table 11 shows the services offered by Little
Land.
Table 32 Service MIX
GENDER TYPE OF SERVICE

Wash, Cut, and Style
Cut Only
Cut & Blow Dry
Wash & Style
Girls Services Wash & Simple Blow Dry
Wash Only
Bang Trim
Style (Curls / Straighten)
Lice Treatment
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Perm (Trim Included)

Wash, Cut, and Style
Cut Only (Clipper / Scissor)
Cut & Blow Dry
Boys Services Wash & Style
Wash & Simple Blow Dry
Wash Only
Perm (Trim Included)
Levels of Service
CORE BENEFIT - Little Land is a playfull modern and

dedicated to provide the best experience to our adorable
customers. Our kid friendly stylists are trained to provide a
comfortable atmosphere while cutting and styling the kids
hair with patience and speed.
ACTUAL SERVICE - Little Land basic service offer to our

highly esteemed customers as a unisex children hair salon
will revolve around haircut, hair care , hairstyling, and other
hair services.
AUGMENTED SERVICES - Little Land also offers treats

for the kids choice after the service.
Figure 42 Three Levels of Service
When designing a service, marketers first have to define the core, problem-
solving benefits or services customers are seeking for. Children availing Little Land‘s
services are availing more than just a haircut services. They are availing the exciting and
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fun environment and most importantly the friendly stylists that are trained to provide the
most comfortable haircut, hair styling and hair care services.
At the second level, the core benefit into an actual product. They need to create
features for the product and service, design, quality standard, brand name and packaging.
As mentioned, there are several types of services offered by Little Land. This includes
haircut, hair care, hairstyling, and other hair services.
Lastly, an augmented product must be designed around the core benefit and the
actual product by providing additional services and benefits for customers, Little Land
offers treats of the kids choice after the service.
Branding
A brand is a name, term, sign, symbol or design or a combination of these which
identifies a product or service manufacturer or seller. Consumers view a brand as the
most important part of a product, and it can add value to a product. Branding is so
powerful, that hardly anything goes unbranded today.
The word ―Little Land‖ on the business name means that the business is intended
only for children hair care services. In addition to this, in the Philippines, hair salon
industry of which children‘s salon business belongs to is indeed a growing industry and
pretty much thriving. The cartoon scissor with male and female at the scissors handle
represents that the salon strictly caters children of ages 0 – 10 and it is in any gender.
Further, the business‘ slogan ―Where haircuts are fun‖ means that the shop not just
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provide the best haircuts services for children but also provide a fun environment where
the children can enjoy themselves and interact with other children.
Figure 43 Little Land Interior Design

84
To further promote the brand, the employee uniforms are designed to fit
company‘s color as well as printed with the company‘s logo
Figure 44 Employee Uniform
Figure 45 Employee Apron

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Figure 46 Haircut Cape
Positioning
It is how the product or services are differentiated from that of the competitors
and then determine which market function to fill. It helps establish the identity of the
product or service within the eyes of the purchaser. It is affected by a number of variables
related to customers ―motivations and requirements, as well as by its competitors‖
actions. Creating a unique position in the market place involves a careful choice if target
market and establishing a clear differential advantage in the minds of people. In
positioning, The Little Land children hair salon together with its competitors are mapped
based on the quality and price in order for the business to compare to their service and
enables to distinguish the position of the Little Land to the market from the other
competitors offered.
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3.7.2. Price
Among all the marketing mix variables, price is the only one that generates sales
revenue – all the others are costs. It refers to the amount of value provided for a particular
product / service.
Factors
After setting up the types of service that the business is going to launch and the
market that it is aiming for, the business is about to establish the service pricing. Little
Land considered various factors in setting the price or fees of its offered services which
can be categorized into two main groups:
Internal Factors - these are the factors that have direct impact to the business
that should be considered in setting a price.
External Factors - these are the outside influences that go beyond the control of
the management and the organization that should be considered in setting a price.
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FACTORS AFFECTING
PRICING DECISIONS
Internal Factors External Factors
Competitive Activity and

Cost Market Position
Profit Factor Demand Factor
Consumer Psychology
Figure 47 Factors Affecting Decisions Policies and Approaches
1. Cost - One of the considerations to be addressed is costs, specifically direct
costs (i.e. costs directly related to the manufacture of the goods or services)
and indirect costs ( i.e. general operating costs, insurance and depreciation).
2. Profit Factor - One of the primary objectives is to diversify and grow by
obtaining a reasonable profit, hence profit factor is considered in setting the
pricing for the service. The business wants to keep the price at a constant level
and always considers how much money we try to make over break even.
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3. Competitive Activity and Market Position - Benchmarking on competitor
prices is also taken into account in setting the optimal price that would
maintain the competitive advantage of the business as well as its market
position.
4. Demand Factor- The price of the offered services also depends on the
demand factor. In deciding the product's price, the elasticity of demand is
recognized. The company can set a high price if the market for the product is
inelastic. On the other hand, if demand is elastic, then a lower price has to be
set.
5. Consumer Psychology - Demand for the product depends upon the
psychology of the consumers. The sensitivity to price shifts varies from
consumer to consumer. Consumer income, living standards and price factor
influence society's demand for various products
Policies and Approaches
Through systematic pricing policies and strategies, companies can reap greater
profits and increase or defend the market shares. Setting prices is one of the principal
tasks of marketing and finance managers in that the price of a product or service often
plays a significant role in that success of product/service, not to mention in a company‘s
profitability. Generally, pricing policy refers on how a company sets the prices of its
products and services based on costs, value, demand, and competition.

89
Demand
Based
Pricing
Competit
Value PRICING
ion
Based POLICIES AND
Based
Pricing APPROACHES
Pricing
Cost
Based
Pricing
Figure 48 Pricing Policies and Approaches
Cost-based Pricing involves the determination of all fixed and variable costs
associated with a product or service. The goal of the cost-oriented approach is to cover all
costs incurred in producing or delivering products or services and to achieve a targeted
level of profit.
Value-based Pricing is a reflection of a product of service‘s perceived value by
customers, not just the company‘s costs to produce or provide a product or service. The
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value of a product or service is derived from the customer needs, preferences,
expectations, and financial resources as well as from competitors‟ offerings.
Demand-based Pricing policies are not fully concerned with costs. Instead, they
concentrate on the behavior and characteristics of customers and the quality and
characteristics of their products or services. Demand-oriented pricing focuses on the level
of demand for a product or service, not on the cost of materials, labor, and so forth.
Competition-based Pricing policy, a company sets its prices by determining
what other companies competing in the market charge. A company begins developing
competition-based prices by identifying its present competitors. Next, a company
assesses its own product or service. After this step, a company sets it prices higher than,
lower than, or on par with the competitors based on the advantages and disadvantages of
a company‘s product or service as well as on the expected response by competitors to the
set price.
Little Land employs a Flexible - Price Policy which means offering the same
service to customers at different prices. Service types come with different charges
according to the type of hair services the customer will avail. Moreover, there is an
additional fee for the additional hair service if the service is not included in the set.
Service Pricing and Strategy
A pricing strategy is a model or method used to determine the best price for a
product or service. Pricing strategies help the company choose prices that maximize
profits while taking customer and market demand into consideration.

91
The Pricing Strategy Matrix shows how different levels of price and quality
combine to form four commonly used pricing strategies:
Premium
Price Skimming
Pricing
Economy Penetration
Pricing Pricing
Figure 49 Pricing Strategy Matrix
Premium pricing strategy establishes a price higher than the competitors. It is a
strategy that can be effectively used when there is something unique about the
product/service or when the product/service is first to market and the business has a
distinct competitive advantage. It can be a good strategy for companies entering the
market with a new market and hoping to maximize revenue during the early stages of the
product life cycle.
Penetration pricing strategy is designed to capture market share by entering the
market with a low price relative to the competition to attract buyers. The idea is that the
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business will be able to raise awareness and get people to try the product/service. Even
though penetration pricing may initially create a loss for the company, the hope is that it
will help to generate word-of –mouth and create awareness amid a crowded market
category.
Economy pricing is a familiar pricing strategy for organizations whose brand is
based on this strategy. Companies take a very basic, low-cost approach to marketing
nothing fancy, just the bare minimum to keep prices low and attract a specific segment of
the market that is very price sensitive.
Price skimming strategy is designed to gain maximum revenue advantage before
other competitors begin offering similar products or product alternatives.
Based on pricing strategy matrix analysis, Little Land employs the premium
pricing. Considering the business offers an exciting and fun environment for the kids so
they can enjoy the service ad be anxious and afraid, the service considered unique and
convenient thereby incurs high service costs but not too much. The service offered by
Little Land comes at a premium, which means that you have the potential to achieve a
high profit margin. Moreover, a premium price tag can help to enhance your brand
identity, and adds to the aspirational quality of your services offered.
3.7.3. Placement
Place (distribution) is a critical element of marketing-after all, marketing is about
getting the right product/service, in the right quality, to the right place at the right time. It
is how the product/service will be provided to the consumer, how it is differentiated or

93
how its edge is given emphasis from that of your competitors and how it has established
significant and relevant identity of the product/service within the eyes of the purchaser.
Establishing a unique position in the market place requires a keen and careful choice of
target market and instilling a clear beneficial advantage in the minds of every individual.
The Little Land children hair salon will establish the business at Mactan Town
Center, Basak Lapu-Lapu City, wherein they can cater the children in the nearby
locations. The business is accessible to the public as it is located in the most urban
barangay in Lapu-Lapu City. In marketing the business using distribution channel is
important.
Figure 50 Vicinity Map of Mactan Town Center, Basak Lapu-Lapu City

94
Channel Design Decisions
It is analyzing customer needs, setting channel objectives, identify major channel
objectives and evaluation. In Little Land children hair saloon service, analyzing customer
needs is the main purpose of the business is to provide a memorable haircutting
experience and have an environment that is warm and welcoming to kids.
3.7.4. Promotions
Promotion is just the communication aspect of the entire marketing function. This
will assist the consumer in making a decision to purchase or avail the product/service and
to make this known to the end user and trade. This may include advertising, sales
promotions, special offers and discounts, public relations and even word-of-mouth.
Whatever the channel used, it is essential for it to be suitable and relevant for the
product/service, the price and the end user it is being marketed to.
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Advertisin
g
Direct Personal
Marketing Selling
MERKETING
COMMUNIC
ATION MIX
Public Sales
Relations Promotion
Figure 51 Marketing Communication Mix
Especially designed posters in the display window are good techniques for
developing the image here meaning that the satisfied customers are an effective
promotional tool. The internet is a very active component of advertising and the business
website is under rapid development and considered the most effective marketing tool in
the near future. This means being easily available to all interested customers. It also
practices after sales promotion and keep in touch with the customers.
The following promotional tools that Helping Hands used are the following:
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Advertising
Little Land advertise the services it offers by distributing printed materials or
flyers with a distinctive and impactful message to connect the brand of the business with
the customers.
Personal Selling
Little Land will use personal selling through a Sales Force. The sales force will
consist of 1-2 people making phone calls, traveling to various locations, handing out
printed materials and spreading the word about activities and services that Little Land
offers.
Sales Promotion
Little Land plans to reward regular members by giving them a discount. This
could be measured by providing a pre-planning and other service offered to customer.
Public Relations
Little Land makes use of social media as one of the public relations platforms.
Potential customers see a lot of news being published with regards to what is trending.
Direct Marketing
Little Land employs digital marketing, in which they have personal connections
with the customer. The brand of the company will reach the private space via social
marketing and interact with customers through email box, Facebook wall and twitter
feed.
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3.8. Life Cycle Strategies
The life cycle of a product / service is a term used to describe the stage a product or
service fulfills at that point in time. The four of each life cycle strategies are introduction
stage, growth stage, maturity stage and decline stage. This life cycle comes with different
strategy set up by the management in order to maintain the competitive edge of the
business and to help the business remain in the market. This section presents the four
stages of life cycle strategies of Little Land.
Table 33 Life Cycle Strategies
3.8.1. Introduction Stage
Little Land promotes a salon service which is advanced and inclined to
technology. Instead of a typical salon services. A on trend and innovated salon services
are offered which means the company could still provide the services to your little
children at their most convenient time. At this stage, the company assumes the market
will slowly become aware of the service offered.

98
3.8.2. Growth Stage
The growth stage is when the business attempts to have a loyal customer having
been introduced to the market, Little Land assumes that the service has been heard and
tried by increasing numbers of customers at this point. It is also at this stage that new
market approach is needed to make the most of the growth potential in this phase.
3.8.3. Maturity Stage
As Little Land reaches the end of the growth stage, it enters the next phase—
maturity stage. At this stage, business sales have mostly reached the saturation point,
where market shares will be able to expand through services provided and an increase in
profits. Hence, at this point, the aim is to provide a innovated service that can be offered
to the customers.
3.8.4. Decline Stage
By the time Little Land reaches the Final stage, the service market will begin to
decline and thus the sales will begin to fall. This is the stage where the business
experiences a sales downturn and an overall unfavorable in the market. Depending on the
market position, a decrease in demand, loss of sales, low income and loss of market share
are to be experienced at this point. Demand may begin to decline which will also lead to
decreasing sales and profits. In this matter, the business would need to change the
programs offered to what is in demand in the industry and better than what the
competitors offer.
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CHAPTER IV
TECHNICAL ASPECT
This chapter discusses the technologies needed within the establishment. The
technical aspect includes information on the equipment used and the facility. The main
point of this aspect is to demonstrate the process and the service flow, which will satisfy
and attract the attention of the target market.
4.1. Presentation and Analysis of Design Constraints
This section explained the limitations of business processes. The space constraints of
the plant location are discussed in this section.
Beneficiary Community
The main operation and other function of Salon for kids located at Lapu-Lapu City.
This implies that the beneficiary of the business is the Children of Lapu-Lapu City.
4.2. Production Process
4.2.1. Manufacturing Process Type
The determined system of production for the Little Land comprises the following:
a) for the type of service, a salon for kids at their most convenient) the primary type of
work is specialized, c) since we are accommodating various service mix, the number of
different service is many or varied, d) for the type of customer, the business only intends
to cater the children, e) the demand volume is expected to be at very low, f) for the
demand of the service , for the same reason as the latter, the demand is expected stable,
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g)for the classification of equipment, the product needs a specific equipment. Overall, the
business is classified to be operating in one piece.
4.2.2. Process Flow Chart / IPO
The output input-process- is a representation of all the factors that make up a
process. It is a diagram that contains all the materials and details required for the process
itself, as well as explanations of all the services that result from the company.
Figure 52 IPO of Little Land Children Salon
4.2.3. Precedence Table
Precedence table is the sequence of the process including the activities from the
start up to the end of the service

101
Table 34 Precedence Table
PRECEDENCE TABLE
Activity Operations Predecessors Time
(mins.)
A Call or contact the salon --- 2.70
B Ask an information about the service offered A 3.45
C Staff will discuss the service with the programs B 14.27
offered.
D Choose service C 1.14
E Process the service confirmation D 4.31
F Assign to a staff for the service E 9.53
G Start the Service F 2.53
H End the Service G 2.74
I Process payment on the counter H 0.12
TOTAL 40.79
4.2.4. Precedence Diagram
The Precedence diagram as shown in Figure # is a graphical representation
depicting the various major sequential activities. It consists chiefly of arrows and nodes.
Figure 53 Precedence Diagram

102
4.2.7. Process Schematic Diagram
Figure 54 Process Schematic Diagram

4.2.8. Floor Plan
Figure 55 Little Land Floor Plan
103
104
4.3. Work Cycle
4.3.1. Cycle Time
Cycle Time is the time from the beginning of the process until it reaches the
customers.
Figure 56 Process Flow of Little Land
Table 35 Cycle Time
AVERAGE
STANDARD CYCLE
ACTIVITY OPERATIONS TIME SPEND
TIME (MIN) TIME
IN QUEUE
Call or contact the
A 3.0638 2.0465 5.1103
salon
Ask an information
B about the service 4.3016 3.2706 7.5723
offered
C Staff will discuss the 38.32 36.24 70.86
105
service with the

programs offered.
D Choose service 1.29 0.29 1.57
Process the service
E 7.82 6.75 14.05
confirmation
Assign to a staff for the
F 13.72 12.45 25.65
service
G Start the Service 4.56 3.54 7.97
H End the Service 4.8535 3.83 8.6799
Process payment on the
I 0.1266 0.000035 0.1267
counter
TOTAL 141.60
To optimize the output and utilization rate and to the downtime of service
production, the job which has the slowest production cycle time, these tasks should be
eliminated or at least paced up by splitting or sharing. Every workstation should operate
at their minimum allowable cycle time. Table 13 shows that the minimum cycle time for
producing one service can be 78.55.

Table 36 Production Efficiency and Maximum Utilization Rate
CYCLE
PROCE PROCESS TOTAL
LINE NO. OF TIME
COD PROCES CYCLE MINIMU SS PER PROCE
BALANC OPERATO PER
E S TIME M PER OPERAT SS PER
E RS OPERAT
DAY OR DAY
OR
Call or
5.1103815
A contact the 26.737437 26.737437 1 26.737437 3 3 1
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salon
Ask an
informatio
7.5722655
B n about 26.737437 26.737437 1 26.737437 3 3 1
53
the service
offered
Staff will
discuss the
service 70.862179 80.409373 26.8031243
C 26.737437 3 3 1 3
with the 92 1 7
programs
offered.
Choose 1.5740938 80.409373 26.8031243
D 26.737437 3 3 1 3
service 9 1 7
Process
the service 14.054789
E 26.737437 26.737437 1 26.737437 3 3 1
confirmati 85
on
Assign to
25.645437 34.451889 17.2259448
F a staff for 26.737437 2 3 1.5 2
47 72 6
the service
G Start the 7.9730992 80.409373 26.737437 3 26.8031243 3 1 3
106
Service 87 1 7
End the 8.6798810 34.451889 17.2259448
H 26.737437 2 3 1.5 2
Service 69 72 6
Process
payment 0.1265711 34.451889 17.2259448
I 26.737437 2 3 1.5 2
on the 77 72 6
counter
141.59869 141.59869 141.59869
TOTAL
98 98 98
107
108
Table 36 shows the number of operators for each process as to how each process
was divided, thereby allowing each process to have the same minimum cycle time (i.e.,
78.55 minutes) and throughput rate. Ergo, the output will operate at the highest efficiency
and utilization rate possible. It also displays the number of processed parts per operator
required for each process, total processed parts, and work-in-process (WIP) per process.
In addition, the proponents use the following formula to calculate the desired or proposed
throughput rate (e.g., output per day or per month):
4.3.2. Number of Workstation
The proponents decided to have one workstation for all the processes involved
before performing such services. Where all these processes will be one only in this
workstation Work station is the entire area accessed by a worker when performing a
specific task or job cycle which is equipped with all the required tools and facilities. It
should follow the workflow and be planned to accommodate equipment, ancillary
equipment, tools, and supplies. In solving the number of workstations or sub-
workstations, the adherents used the formula:
𝑦
𝑦
109
As computed above, the minimum number of workstations is 1. In which, our
desired number of workstations corresponds to the number of workers is, hence
technically is allowable to the set minimum number of workstation base on the
calculation with the given total cycle time over the minimum cycle time of the process.
4.3.3. Efficiency of the line
Efficiency influences the company's efficiency as well as the worker's efficiency
within the allocated workload. This also means using the resources of the business in
such way that it is used in the production process. The line's effectiveness is measured by
subtracting the percentage of total productivity and the percentage of idle time collected.
Efficiency defines how the lines do tasks successfully without wasting time and energy.
This may have calculated as:
4.3.4. Final Output
This section presents the total capacity the workers can produce daily. This can be
obtained by getting the estimated production time for every piece, available time per day
multiplied by the demand percentage, and the number of workers.

110
Table 37 Final Output
ESTIMATE
TOTAL
D AVAILAB # OF
DEMAN CAPACI
SERVICE MIX PRODUCTI LE TIME WORKE
D (%) TY PER
ON TIME PER DAY RS
DAY
(MIN)
Set A: Shamp
16.666666
Shamp oo + 30 440 14
67
oo + Haircut
Haircut
/ Shamp
16.666666
Shamp oo + 30 440 14
67
oo + blower
blower
Shamp 16.666666
15 440 29
oo 67 5
Set B:
16.666666
1 Blower 15 440 29
67
service
16.666666
Haircut 15 440 29
67
Shamp
Set C: oo +
16.666666
All 3 Haircut 45 440 10
67
Service +
blower
TOTAL 100 125
4.4. Production Capacity
Production capacity concerns the maximum number of customers that can be catered
for by a service line, given the resources available. To determine the company's
production efficiency, the researchers first calculate one service's running time by
conducting a time motion analysis, then find the optimal number of employees involved
in manufacturing the product.

111
The operation time of a service refers to the time it takes to perform the service of
each customer. The operation time yielded is calculated as the summation of time of all
the processes involved.

Table 38 Service Capacity
SERVICE SALON SERVICE FOR BOYS

MACHINE CAPACITY MANPOWER CAPACITY
SERVICE NUMBER
OPERATION MACHINE MANPOWER
CAPACIT EQUIPMEN QUANTIT PROCES OF
S PRODUCTIVIT PRODUCTIVIT
Y T / TOOLS Y S WORKER
Y Y
S
Shampoo + Cutting of
14 Hair scissors 5 420 5 0.466666667
Haircut hair
Shampoo + Hair
14 Shampoo bed 6 420 5 0.466666667
blower shampoo
Shampoo 29 Blow Dryer 6 435 hair drying 5 1.933333333
Cutting of
Blower 29 Barber's Chair 6 435 5 1.933333333
Hair
Hair
Haircut 29 Salon Trolley 10 435 5 1.933333333
shampoo
Shampoo +
Cutting of
Haircut + 10 Clippers 3 450 5 0.222222222
Hair
blower
SERVICE SALON SERVICE FOR GIRLS
MACHINE CAPACITY MANPOWER CAPACITY
SERVICE NUMBER
OPERATION MACHINE MANPOWER
CAPACIT EQUIPMEN QUANTIT PROCES OF
S PRODUCTIVIT PRODUCTIVIT
Y T / TOOLS Y S WORKER
Y Y
S
Shampoo + Cutting of
14 Hair scissors 5 420 5 0.466666667
Haircut hair
Shampoo + 14 Shampoo bed 6 420 Hair 5 0.466666667
112
blower shampoo
Shampoo 29 Blow Dryer 6 435 hair drying 5 1.933333333
Cutting of
Blower 29 Barber's Chair 6 435 5 1.933333333
Hair
Hair
Haircut 29 Salon Trolley 10 435 5 1.933333333
shampoo
Shampoo +
Cutting of
Haircut + 10 Clippers 3 450 5 0.222222222
Hair
blower
The formula to obtain the ideal number of workers is expressed as:
Number of Workers= 26.4∗9 / 450 Number of Workers= 4.88 or 5 worker
113
114
4.4.1. Manpower
This section presents the computations to obtain the productivity of the workers.
The formula to determine the manpower productivity is expressed below.
𝑤 𝑣 y=
Table 39 𝑤 𝑣 y
TOTAL
LABOR MANPOWER
SERVICE MIX CAPACITY
(MIN) PRODUCTIVITY
PER DAY
Set A : Shampoo Shampoo +
14 30 0.466666667
+ Haircut / Haircut
Shampoo + Shampoo +
14 30 0.466666667
blower blower
Shampoo 29 15 1.933333333
Set B: 1 service Blower 29 15 1.933333333
Haircut 29 15 1.933333333
Shampoo +
Set C : All 3
Haircut + 10 45 0.222222222
Service
blower
TOTAL MANPOWER Productivity 6.95
4.4.2. Machine
chine Capacity =∑Product n demand × Cycle time
Table 40 chine Capacity
DAILY CYCLE
MACHINE
SERVICE MIX DEMAND TIME
CAPACITY
(PCS) (MIN)
Shampoo +
Set A : Shampoo + 14 30 420
Haircut
Haircut / Shampoo +
Shampoo +
blower 14 30 420
blower
Shampoo 29 15 435
Set B: 1 service Blower 29 15 435
Haircut 29 15 435
115
Shampoo +
Set C : All 3 Service 10 45 450
Haircut + blower
TOTAL MACHINE CAPACITY 2595
4.4.3. Space Capacity
This section describes the working space capacity of the company. This will
determine the amount of storage space available, as well as the amount of equipment that
can be stored inside the store. Additionally, space capacity is obtained in order to create a
comfortable working environment for the employees.
𝑦=𝑈 𝑞 × ℎ ℎ
𝑦 = 139.39 × 13.19
𝑦 = 𝟑𝟓. 𝟔𝟑 𝒇𝒕𝟑
4.5. Master Production Schedule
The table below presents the master production schedule of the business, which
includes the monthly production of the available Services offered by the business. This is
also shown in weekly demand to determine the weekly production goal. The number of
working days per week of the business is seven, which implies that the store is open
every day
Table 41 presents the master production schedule of the business, which includes
the monthly production of the available Service offered by the business. This is also
shown in weekly demand to determine the weekly production goal. The number of
working days per week of the business is seven, which implies that the store is open
every day.
Table 41 Master Production Schedule
MARCH
JANUARY FEBRUARY
TYPE SERVICE
Week Week Week Week Week Week Week Week Week Week Week Week
1 2 3 4 1 2 3 4 1 2 3 4
Cutting of
50 50 50 50 100 100 100 100 150 150 150 150
SALON Hair
FOR Hair
100 100 100 100 150 150 150 150 200 200 200 200
GIRLS shampoo
hair drying 50 50 50 50 100 100 100 100 150 150 150 150
Cutting of
50 50 50 50 100 100 100 100 150 150 150 150
SALON Hair
FOR Hair
100 100 100 100 150 150 150 150 200 200 200 200
BOYS shampoo
hair drying 50 50 50 50 100 100 100 100 150 150 150 150
116
Table 42 Master Production Service Mix Schedule
SALON SERVICE FOR BOYS 2024
SERVI JANUARY FEBRUARY MARCH

CE MIX
Wee Wee Wee Wee TOTA Wee Wee Wee Wee TOTA Wee Wee Wee Wee TOTA
k1 k2 k3 k4 L k1 k2 k3 k4 L k1 k2 k3 k4 L
SET A 50 50 50 50 200 100 100 100 100 400 150 150 150 150 600
SET B 100 100 100 100 400 150 150 150 150 600 200 200 200 200 800
SET C 50 50 50 50 200 100 100 100 100 400 150 150 150 150 600
TOTAL 200 200 200 200 800 350 350 350 350 1400 500 500 500 500 2000
Salon Service for Girls 2024
SERVI January February March

CE MIX
Wee Wee Wee Wee TOTA Wee Wee Wee Wee TOTA Wee Wee Wee Wee TOTA
k1 k2 k3 k4 L k1 k2 k3 k4 L k1 k2 k3 k4 L
SET A 50 50 50 50 200 100 100 100 100 400 150 150 150 150 600
SET B 100 100 100 100 400 150 150 150 150 600 200 200 200 200 800
SET C 50 50 50 50 200 100 100 100 100 400 150 150 150 150 600
TOTAL 200 200 200 200 800 350 350 350 350 1400 500 500 500 500 2000
117
118
A work system is human or computer involvement that performs work manually,
using information and technology, and other tools to create a product for internal and
external customers. It focuses primarily on setting up a work environment that considers
design, standardization, measurement, analysis, and optimization.
4.6. Materials Requirement Planning
Materials Requirement Planning (MRP) is used in planning, scheduling, and
inventory management. Inventory management software. This will make it easier for the
researchers to control and monitor the flow of the service schedules in order to avoid
collisions and shortages. This will aid in calculating the materials required for each
gadget repair service. This chapter presents the required materials in a service. This
shows the 3 months of material planning and shows the summary of the detailed bill of
materials.
Table 43 Materials Requirement Planning
LAPSING SCHEDULE OF
PROPERTY PLAN AND 2023 2024 2025 2026 2027
EQUIPMENT
Esti
mat
Accu Accu Accu Accu
Cos ed Depr Depr Depr Depr Depr Net
mula mula mula Net mula
t Use eciat Net eciat Net eciat Net eciat eciat Bo
# of Total ted ted ted Book ted
per ful ion Book ion Book ion Book ion ion ok
Unit Cost Depr Depr Depr Valu Depr
Uni Lif Expe Value Expe Value Expe Value Expe Expe Val
eciat eciat eciat e eciat
t e in nse nse nse nse nse ue
ion ion ion ion
yea
rs
Salon Electric
Equipment:
1,1 712. 2,848 712. 1,42 2,136 712. 2,13 1,424 712. 2,84 712. 712. 3,56
Hood dryers 3 3,561 5 -
87 20 .80 20 4.40 .60 20 6.60 .40 20 8.80 20 20 1.00
12,3 15,4
3,8 15,46 3,09 12,36 3,09 6,18 9,276 3,09 9,27 6,184 3,09 3,09 3,09
Heat Lamps 4 5 68.0 60.0 -
65 0 2.00 8.00 2.00 4.00 .00 2.00 6.00 .00 2.00 2.00 2.00
0 0
855 684. 2,736 684. 1,36 2,052 684. 2,05 1,368 684. 2,73 684. 684. 3,42
Blow dryers 4 3,420 5 -
.00 00 .00 00 8.00 .00 00 2.00 .00 00 6.00 00 00 0.00
Hair 1,2 1,03 4,156 1,03 2,07 3,117 1,03 3,11 2,078 1,03 4,15 1,03 1,03 5,19
4 5,196 5 -
straighteners 99 9.20 .80 9.20 8.40 .60 9.20 7.60 .40 9.20 6.80 9.20 9.20 6.00
1,9 1,19 4,797 1,19 2,39 3,598 1,19 3,59 2,398 1,19 4,79 1,19 1,19 5,99
Hair curlers 3 5,997 5 -
99 9.40 .60 9.40 8.80 .20 9.40 8.20 .80 9.40 7.60 9.40 9.40 7.00
825 825. 3,300 825. 1,65 2,475 825. 2,47 1,650 825. 3,30 825. 825. 4,12
Hair clippers 5 4,125 5 -
.00 00 .00 00 0.00 .00 00 5.00 .00 00 0.00 00 00 5.00
Washing
machine and a 4,9 1,97 7,916 1,97 3,95 5,937 1,97 5,93 3,958 1,97 7,91 1,97 1,97 9,89
2 9,896 5 -
dryer (for 48 9.20 .80 9.20 8.40 .60 9.20 7.60 .40 9.20 6.80 9.20 9.20 6.00
towels)
Air 9,6 1,93 7,758 1,93 3,87 5,818 1,93 5,81 3,879 1,93 7,75 1,93 1,93 9,69
1 9,698 5 -
Conditioner 98 9.60 .40 9.60 9.20 .80 9.60 8.80 .20 9.60 8.40 9.60 9.60 8.00
57,35 11,4 45,88 11,4 22,9 34,41 11,4 34,4 22,94 11,4 45,8 11,4 11,4 57,3 -
119
3.00 70.6 2.40 70.6 41.2 1.80 70.6 11.8 1.20 70.6 82.4 70.6 70.6 53.0
0 0 0 0 0 0 0 0 0 0
Salon
Manager
Equipment:
8,5
14, 14,99 2,14 12,85 2,14 4,28 10,71 2,14 6,42 8,570 6,42 8,57 6,42
Laptop/PC 1 7 - - 70.
999 9 2.71 6.29 2.71 5.43 3.57 2.71 8.14 .86 8.14 0.86 8.14
86
5,7
9,9 1,42 8,570 1,42 2,85 7,142 1,42 4,28 5,713 4,28 5,71 4,28
Phone 1 9,999 7 - - 13.
99 8.43 .57 8.43 6.86 .14 8.43 5.29 .71 5.29 3.71 5.29
71
Appointment
1,2
booking / 2,1 305. 1,835 305. 611. 1,529 305. 917. 1,223 917. 1,22 917.
1 2,141 7 - - 23.
scheduling 41 86 .14 86 71 .29 86 57 .43 57 3.43 57
43
software
Salon POS 1,0
1,7 257. 1,542 257. 514. 1,285 257. 771. 1,028 771. 1,02 771.
System / cash 1 1,799 7 - - 28.
99 00 .00 00 00 .00 00 00 .00 00 8.00 00
Register 00
Salon
1,7 242. 1,457 242. 485. 1,214 242. 728. 971.4 728. 971. 728. 971
Management 1 1,700 7 - -
00 86 .14 86 71 .29 86 57 3 57 43 57 .43
Software
13,1 13,1 17,5 13,1 17,
30,63 4,37 26,26 4,37 8,75 21,88 4,37 17,50
30.5 - 30.5 07.4 - 30.5 507
8.00 6.86 1.14 6.86 3.71 4.29 6.86 7.43
7 7 3 7 .43
Hair Salon
Tools and
Equipment:
2,7
Shears and 659 922. 3,690 922. 1,84 2,767 1,84 2,767 1,84 2,76 1,84
7 4,613 5 67.
scissors .00 60 .40 60 5.20 .80 5.20 .80 5.20 7.80 5.20
80
46. 368.0 73.6 294.4 73.6 147. 220.8 73.6 220. 147.2 220. 147. 220. 147
Rattail combs 8 5
00 0 0 0 0 20 0 0 80 0 80 20 80 .20
Wide-Toothed 40. 320.0 64.0 256.0 64.0 128. 192.0 64.0 192. 128.0 192. 128. 192. 128
8 5
combs 00 0 0 0 0 00 0 0 00 0 00 00 00 .00
130 650.0 130. 520.0 130. 260. 390.0 130. 390. 260.0 390. 260. 390. 260
Round brushes 5 5
.00 0 00 0 00 00 0 00 00 0 00 00 00 .00
120
350 350. 1,400 350. 700. 1,050 350. 1,05 700.0 1,05 700. 1,05 700
Vented brushes 5 1,750 5
.00 00 .00 00 00 .00 00 0.00 0 0.00 00 0.00 .00
150 750.0 150. 600.0 150. 300. 450.0 150. 450. 300.0 450. 300. 450. 300
Paddle brushes 5 5
.00 0 00 0 00 00 0 00 00 0 00 00 00 .00
Hair cutting 49. 245.0 49.0 196.0 49.0 98.0 147.0 49.0 147. 147. 98.0 147. 98.
5 5 98.00
capes 00 0 0 0 0 0 0 0 00 00 0 00 00
99. 495.0 99.0 396.0 99.0 198. 297.0 198. 297.0 198. 297. 198. 297
Salon towels 5 5
00 0 0 0 0 00 0 00 0 00 00 00 .00
95. 475.0 95.0 380.0 95.0 190. 285.0 190. 285.0 190. 285. 190. 285
Hand mirrors 5 5
00 0 0 0 0 00 0 00 0 00 00 00 .00
Hair water 85. 255.0 51.0 204.0 51.0 102. 153.0 102. 153.0 102. 153. 102. 153
3 5
spray bottles 00 0 0 0 0 00 0 00 0 00 00 00 .00
20. 400.0 80.0 320.0 80.0 160. 240.0 160. 240.0 160. 240. 160. 240
Hair clips 20 5
00 0 0 0 0 00 0 00 0 00 00 00 .00
40. 200.0 40.0 160.0 40.0 80.0 120.0 80.0 120.0 80.0 120. 80.0 120
Aprons 5 5
00 0 0 0 0 0 0 0 0 0 00 0 .00
Salon latex 75. 600.0 120. 480.0 120. 240. 360.0 240. 360.0 240. 360. 240. 360
8 5
gloves 00 0 00 0 00 00 0 00 0 00 00 00 .00
5,4
10,52 2,10 8,416 2,10 4,20 6,312 816. 5,02 5,496 5,02 5,49 5,02
- - 96.
1.00 4.20 .80 4.20 8.40 .60 60 5.00 .00 5.00 6.00 5.00
00
90, 18,0 27,0 36,1 54,1 45,1 45,
Salon 90,32 9,03 81,29 9,03 72,26 9,03 63,23 9,03 9,03
328 10 65.7 98.6 31.4 97.1 64.3 164
renovation 8.65 2.87 5.79 2.87 2.92 2.87 0.06 2.87 2.87
.65 3 0 6 9 3 .33
GRAN
26,9 26,9 53,9 25,6 79,6 20,5 100, 88,6 20,5 120, 68,
D 188,8 161,8 134,8 109,1
84.5 84.5 69.0 96.9 65.9 03.4 169. 71.2 03.4 672. 167
TOTA 40.65 56.13 71.61 74.68
2 2 4 2 7 7 43 2 7 90 .75
L
121
122
4.6.1. Product Structure Tree
The Product Structure Tree represents the form and the parts. It depicts the
portion of the subassemblies and other items that represent dependent parts and grouping
items. The essence of efficient structure tree building is represented by product
components and their relationships.
Figure 57 Product Structure Tree
4.6.2. Materials Specification
The materials specification for Little Land Children's Salon is provided below
along with technical information to help understand the nature of the materials
requirement.
123
Table 44 Materials Specification
TECHNICAL
MATERIALS QTY
INFORMATION
Hair shampoo 15 Purchased
Hair conditioner 15 Purchased
Temporary hair dye 15 Purchased
Children‘s hair oil 15 Purchased
Latex Gloves 15 Purchased
Shears and scissors 7 Purchased

Rattail combs 8 Purchased
Wide-Toothed combs 8 Purchased
Round brushes 5 Purchased
Vented brushes 5 Purchased
Paddle brushes 5 Purchased
Hair cutting capes 5 Purchased
Salon towels 5 Purchased
Hand mirrors 5 Purchased
Hair water spray bottles 3 Purchased
Hair clips 20 Purchased
Aprons 5 Purchased
Table 44 displays the material specifications required for salon services. The
technical information demonstrates how the company intends to obtain a specific
material; the majority of these are purchased from the company's supplier.
124
4.6.3. Parts List
Table 45 Parts List
PARTS CODE MATERIALS QTY

HS Hair shampoo 15
HC Hair conditioner 15
TH Temporary hair dye 15
CH Children‘s hair oil 15
LG Latex Gloves 15
SS Shears and scissors 7
RC Rattail combs 8
WTC Wide-Toothed combs 8
RB Round brushes 5
VB Vented brushes 5
PB Paddle brushes 5
HCC Hair cutting capes 5
ST Salon towels 5
HM Hand mirrors 5
SB Hair water spray bottles 3
HC Hair clips 20
APR Aprons 5
Table 45 shows the list of all the materials in the children‘s salon with its part
code and quantity used in pieces.
4.6.4. Bill of Materials
The bill of materials, also known as a product structure, is a list of materials,
parts, and the quantities required to produce one unit of an end product or service. The
children salon materials bill is shown in the table below.

125
Table 46 Bill of Materials
SET A
PRI UNIT
CE QUANTI COST
COS
PER TY PER
MATERI UNI DESCRIPT QUANTI T
UNI USED QUANTI
ALS T ION TY (PH
T PER TY
P)
(PHP ORDER USED
) (PHP)
Shears and
Pcs 1 Per piece 7 659 3.62 2 7.24
scissors
Rattail
Pcs 1 Per piece 8 46 1.53 2 3.06
combs
Wide-
Toothed Pcs 1 Per piece 8 40 1.33 2 2.66
combs
Round
Pcs 1 Per piece 5 130 4.33 2 8.66
brushes
Vented
Pcs 1 Per piece 5 350 11.67 2 23.34
brushes
Paddle
Pcs 1 Per piece 5 150 5 2 10.00
brushes
Hair
cutting Pcs 1 Per piece 5 49 1.63 2 3.26
capes
Salon
Pcs 1 Per piece 5 99 3.3 2 6.60
towels
Hand
Pcs 1 Per piece 5 95 3.17 2 6.34
mirrors
Hair water
spray Pcs 1 Per piece 3 85 2.83 2 5.66
bottles
10pcs per
Hair clips Pcs 20 20 2 4 8.00
pack
Aprons Pcs 1 per pack 5 40 40 2 80.00
Salon latex 2 pcs per 142.4
8 75 1 142.44
gloves pack 4
Total 307.26
126
SET B
PRI UNIT
CE QUANTI COST
COS
PER TY PER
UNI USED QUANTI
ALS T ION TY (PH
T PER TY
P)
(PHP ORDER USED
) (PHP)
Shears and
Pcs 1 Per piece 7 659 3.62 1 3.62
scissors
Rattail
Pcs 1 Per piece 8 46 1.53 1 1.53
combs
Wide-
combs
Round
Pcs 1 Per piece 5 130 4.33 1 4.33
brushes
Vented
Pcs 1 Per piece 5 350 11.67 1 11.67
brushes
Paddle
Pcs 1 Per piece 5 150 5 1 5.00
brushes
Hair
capes
Salon
Pcs 1 Per piece 5 99 3.3 1 3.30
towels
Hand
Pcs 1 Per piece 5 95 3.17 1 3.17
mirrors
Hair water
bottles
10pcs per
pack
8 75 1 142.44
gloves pack 4
Total 224.85
127
SET C
PRI UNIT
CE QUANTI COST
COS
PER TY PER
UNI USED QUANTI
ALS T ION TY (PH
T PER TY
P)
(PHP ORDER USED
) (PHP)
Shears and
Pcs 1 Per piece 7 659 3.62 3 10.86
scissors
Rattail
Pcs 1 Per piece 8 46 1.53 3 4.59
combs
Wide-
combs
Round
Pcs 1 Per piece 5 130 4.33 3 12.99
brushes
Vented
Pcs 1 Per piece 5 350 11.67 3 35.01
brushes
Paddle
Pcs 1 Per piece 5 150 5 3 15.00
brushes
Hair
capes
Salon
Pcs 1 Per piece 5 99 3.3 3 9.90
towels
Hand
Pcs 1 Per piece 5 95 3.17 3 9.51
mirrors
Hair water
bottles
10pcs per
pack
8 75 1 142.44
gloves pack 4
TOTAL 389.67
128
4.7. Design of Work System
A work system is the involvement of people, or the working devices act by hand,
using information and technology, and other tools produce a commodity for internal as
well as external clients. It primarily focuses on creating a workplace that takes
architecture, standards, measure, analyze, and optimize into account. Anthropometric
measurement are efficient estimations of the size, shape and synthesis of the human body.
The accompanying tables of anthropometric estimations of standing measurement in the
50th percentile appeared beneath are utilized to decide the standard sizes and
measurements of every workstation for each procedure obliging the normal estimations
of Filipino specialists.
4.7.1. Workstation Design
The term work environment is used to define the circumstances surrounding a
person works in. Physical conditions, such as office temperature, or equipment, such as
personal computers, may compose the work environment. Also, it might be related to
things like work processes or procedures.

129
Table 47 Anthropometric Measurement of Filipino Workers for Standing
Recommended Clearance Dimension or Work Surface Thickness for the Standing
Workstations
130
● It is critical to leave room or space for the worker‘s knees and toes, when
designing standing workstations.
● The work surface must be no more than 4.5 cm thick; the thicker the
surface, the closer the workers can stand to the front edge of the work
surface while working without the bottom edge of the work surface
digging into the worker's thigh.
Figure 58 Workstation Specifications
Reach Distance in Workstation
● Standing workstations must be designed so that frequent reaches are either
beyond the "reach envelope" or kept within the user's normal reach zone.
● Any reaching beyond their maximum grasp must be made by the handler
distance.
131
Figure 59 Reaching Guidelines
4.7.2. Work Environment
Little Land Children Salon's workplace environment is designed for employees to
perform their work in a comfortable manner, thereby increasing employee performance,
and for customers to have a comfortable and safe training experience. OSHA standard
1926.56 specifies the minimum level of illumination.
4.7.3. Lumens Requirement
Given the importance of eyesight in all work activities, lighting is an important
factor in the work environment and a necessary condition for performing work processes.
Inadequate lighting has a negative impact not only on eyesight but also on a worker's
psychological state, productivity, and occupational injuries. The situation in which it
works best. OSHA standard 1926.56 established minimum illumination requirements in

132
foot candles ((ft.) which is the amount of light emitted by an illumination 1-foot distance
candle) for a variety of work environments such as:
Office Lighting
● The general standard lighting must be illuminated to at least 5ftc.
● Indoor bathrooms must be 10ftc.
● Offices must be illuminated at 30ftc.
Table 48 below depicts an estimate of the areas illuminated in the plant;
proponents say that the region in the plant is Wall Color in light, the light bulb is of
medium illumination and location strength, and the light location is in the center. Foot
candle requirements (the amount of light emitted by an illumination 1-foot-distance
candle) for a variety of work environments, including:
Table 48 Lumens Computation
AREAS REQUIRED ILLUMINATION

AREAS WATTAGE
(SQ. M) (LUX, LUMENS/SQ. M)
Children‘s Salon 70.68 7068 28
Stock Room 9.2 920 26
Office 18.4 9200 30
Sales
12.35 2470 28
Representative
Comfort Room 27.8 5560 28
Lighting Outlets
● This standard requires the placement of outlets in such a how an employee
who changes bulbs or does a repair is safe from injury other moveable
equipment or live pieces.

133
● Key switches often have to be far away from moving equipment or such
probable risks.
Installation Requirements
● Standard 1910 covers all systems of electrical equipment, which refers to
lighting. It lays down minimum wire size, grounding and installation
requirements places, and procedures.
● Norm OSHA 1910.304(c)(5) specifies that outdoor lights must be used
located under all live transformers, conductors and other electrical equipment
which does not have sufficient clearances and safeguards.
● Standard 1910.305 notes that temporary illumination should not be greater
than 600 volts for the remodeling, site maintenance and repair.
● It also allows for temporary carnivals and Christmas lighting not to reach 90
days of lighting.
4.7.4. Ventilation Requirement
Thermal comfort is important for both one's health and productivity. Heat-related
illnesses among employees and customers exposed to hot environments can be reduced
by implementing engineering controls that make the work environment cooler, such as air
conditioning and proper ventilation, particularly in the children's salon area.
4.7.5. Noise Level
Noise is defined as any unwanted sound that interferes, disrupts, or damages
human organ psychophysiological functions. The noise level calculation facility shall be
134
decibels (dB). According to the permitted noise levels the Noise from 50 to 60 still makes
contact between humans in the workplace. DB, at 1000 Hz frequency, at a distance of 1-2
meters, with smaller distances given for higher noise levels (e.g., 0.4 m at DB 70).
4.7.6. Temperature
Working in a children's salon often requires working in climate-controlled
environments. Because of the sensitive nature of various components and to maximize its
longevity, some tools and equipment must be kept under climate control.
Little Land Children's Salon would keep workplace temperatures between 20°C
and 24°C and humidity levels between 20 and 60 percent, as recommended by the
Occupational Safety and Health Administration (OSHA) technical manual. "Office
temperature and humidity conditions are generally a matter of human comfort rather than
hazards that could cause death or serious physical harm," according to an OSHA
interpretation letter.
4.7.7. Housekeeping Policies
It is difficult to keep everything clean and orderly, and the majority of the issues
that frequently appear on facility inspection reports are related to poor housekeeping.
Working in a clean environment will put employees in the right frame of mind to perform
well and will instill a sense of pride in them.
Little Land Children Salon employees and customers are expected to follow the
following safety and cleanliness guidelines. Failure to do so may result in harm or
danger.
135
Basic Housekeeping:
1. Tools and equipment must always be kept at its designated toolboxes and
drawers after the operation.
2. Hazardous materials or chemicals must be disposed properly in a separate
trash bin.
3. Keep the floors clean and free from any mess before closing the shop.
4. Garbage must be separated and properly disposed of in designated garbage
containers.
5. Before and after each shift, the workspace and tables must be cleaned.
Safety:
1. Workers are required to use the company's provided personal protective
equipment.
2. Unused electrical equipment must be unplugged if not in use to avoid
overheating and fire hazards.
3. Aisles and passages between workstations must always be wide enough to
allow for movement. They must be kept clear at all times, free of any
impediments that might cause a hazard.
4. All fire alarms and fire extinguishers must be placed in an area where it can be
easily located.
5. Flammable and combustible materials must be stored properly.

136
4.7.8. Safety Standards
Employee safety is just as important as keeping the business running for years.
Maintaining worker safety entails considering the safety of the environment in which
they work, which means reducing workplace hazards. Establishing workplace safety
standards reduces accidents, which may result in lower occupational health costs, higher
employee satisfaction, less employee downtime, and less retraining time for new
employees.
4.7.8.1. Health Safety Protocol
It is critical that workers follow procedures when providing salon services. Safety
guidelines are required in order to reduce occupational accidents that can result in minor
to serious injuries. Furthermore, due to the spread of COVID-19, it is critical to follow
minimum health protocols in commercial establishments to prevent the spread of the
disease.
Safety Guidelines and Instructions for Kid’s Salon Services:
1. Maintaining Cleanliness in the Workstation: There are lot of tools and
equipment that are used in kid salon service that may be a source of risk such
as sharp objects, electrical equipment, and hazardous chemicals. Hence,
employee must observe cleanliness in their workstation to minimize and
avoid occupational accidents.
2. Use Appropriate Materials: As a professional salon service provider to
children, one must choose the proper tools that will ensure their safety
137
especially kids are more vulnerable to hair products that may be harmful. In
addition, worker must handle the materials accordingly.
3. Observe Precautionary Measures when working with Hot Equipment:
Using hot equipment must be done with extreme caution to avoid burns on
the job. When working with hot equipment, it is best to avoid distractions and
focus completely.
4. Be aware of customer actions while on the premises: When dealing with
children, worker must be alert to potential hazards and actions that may
compromise the safety of customers and colleagues.
4.7.8.2. Fire and Earthquake Safety Program
The fire and earthquake safety program are critical to everyone's safety. It is
preferable if employees are prepared to keep themselves safe in stressful situations such
as fires and earthquakes, which are common in a hot and earthquake-prone country.
Building Fire Protection System
Fire protection systems are essential in the children's salon industry, especially
when electrical equipment and combustible materials are involved. Individual fire
protection systems are established to protect the establishment from any fire incidents,
which include:
● Fire Alarms. A fire alarm is a single device or a network of devices installed
in a building or area that provides audible and/or visible warning of a fire
outbreak in that building or area.

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● Fire Sprinklers. A fire-sprinkler system is constantly ready to put out a fire,
it will automatically trigger and extinguish a fire in its early stages without the
need for user intervention.
● Emergency Lights. Emergency lights assist evacuees in swiftly and safely
exiting a facility. During a power outage, these lights illuminate the shortest
door path.
● Exit Signs. People usually exit buildings in the same manner as they entered
so it‘s important to have exit signs to remind people in the vicinity that it has a
lot of exit points.
● Fire Doors. Fire doors and dampers safeguard building inhabitants by
compartmentalizing smoke and heat, preventing a fire from quickly spreading
throughout the structure. A self-closing latch is common on fire doors. When
the alarm system is activated or when the system detects smoke or fire, these
doors close automatically.
Things to do During an Earthquake:
● Drop. Drop to the floor, avoiding any falling objects or toppling furniture.
● Cover. Take cover under a strong desk, table, or other pieces of furniture. If
no such furniture is available, take cover against an interior wall with your
arms covering your head. Windows, hanging objects, mirrors, and towering
furniture should all be avoided.
● Hold on. If you take cover under furniture, hold on tight and be prepared to
move with it. Do not release until the ground stops shaking.
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Things to do after an Earthquake:
● When the Shaking Stops: (1) Look for others in the vicinity who have been
injured; (2) Request medical assistance and, if necessary, administer first aid;
(3) Look for hazards such as building damage, fires, or gas leaks in the
neighborhood. If the building appears to be unsafe, exit immediately and
report any immediate issues; and (4) For emergency information, listen to a
battery-operated radio.
● Earthquake Aftermath: (1) Be prepared for aftershocks; (2) Wear sturdy
shoes to avoid injury from broken glass; (3) Do not use telephones except in a
serious emergency; (4) Assist others in the area; (5) Report injuries or damage
to the nearest emergency response team; (6) Evacuate the building. Do not re-
enter until it has been assessed for damage and deemed safe by inspectors.
● While evacuating, observe the following procedures: (1) Turn off all
electrical equipment; (2) Bring emergency supplies and purses/wallets with
you; (3) Do not leave anyone behind (4) Assist those with disabilities; (5)
Close all doors behind you; (6) Use the stairs only and ever take the elevator;
(7) Assemble in a safe outdoor area; and lastly (8) Cooperate with emergency
response teams.
4.7.8.3. Health and Safety Training Programs
Training and instruction for employees will help the company ensure that they
know how to work safely and understand how to control health risks.
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● Introduction training. New employees are given introduction training to help
them adjust to their new work environment and tasks. This fundamental
training will give new employees an overview of the company and the
services it provides. It will assist employees in acquainting themselves with
their new workplace, colleagues, and procedures.
● Refresher training. Employees are given refresher training on the assumption
that their current skills have become obsolete or useless. This could be due to
technological advancements or simply to people forgetting things. Employees
may become complacent about safety procedures, which can lead to blunders
or errors. It is therefore critical to keep employees' knowledge and abilities up
to date.
4.7.8.4. Personal Protective Equipment
Employees use PPE (Personal Protective Equipment) to protect themselves from
risks that persist after engineering and work practice controls have been implemented.
Personal protective equipment and clothing must be appropriate for the level of
protection required for the anticipated exposure.
Table 49 Personal Protective Equipment
PPE ILLUSTRATION FUNCTIONS
They serve as a barrier between the client and the

hairdresser's face. They give the hairdresser a
Face Shields
chance to stay in touch, lowering the possibility of
any airborne transmission.
Designed to achieve a very close facial fit and very

Face Mask
efficient filtration of airborne particles
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Disposable hand gloves shield hair stylists from

Disposable illnesses that affect the skin. These gloves are
Gloves single-use and must be thrown away immediately
after usage.
Apron or gown should be worn to prevent soiling of

Salon Apron clothing during procedures that may involve contact
with body fluids, blood, secretions, or excretions.
4.7.8.5. Safety Signage’s in the Company
Safety signs are essential in any workplace. The primary goal of displaying safety
signs is to prevent harm and to inform employees and visitors of potential dangers and
hazards in specific scenarios and/or locations. If there were no signs, many employees
would lack the necessary direction in a crisis, and companies could face serious legal
issues if any accidents occurred as a result. The following table lists the safety signages
that have been distributed throughout the company:
Table 50 Safety Signage’s in the Company
SIGNAGE DESCRIPTION
Helps locate the fire extinguisher in the premises and access it to

tackle the fire
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To encourage and remind employees, customers, and visitors to put

on their face mask or protective face covering before entering
Reminds people to maintain the recommended 6- foot (or 2 meter)

distance between one another
Reminds customers and visitors to be extra careful and alert for sharp
objects.
Helps locate the emergency exit to be used in the event of fire or other
emergency situations
4.7.8.6. Health Safety Protocol against COVID-19
Cleanliness, health, and safety procedures will be prioritized under the new
normal, and this should be communicated to all stakeholders, particularly customers. As a
result, Little Land is ready for the new normal and promises to develop criteria to ensure
that the "new normal" is maintained.
● Employee Checks. It involves a temperature check for all customers entering
the store, symptom questions if they are experiencing unusual sensations,
COVID-19-person exposure questions, and so on. The goal is to keep anyone
who is ill out of the workplace so that they do not infect others. Every day,
when new employees arrive, they must be screened.
● Social Distancing and Proper Hygiene. The staff must also maintain
distance throughout the day. Employee barriers must also be put in place. All
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personnel in the organization should be regularly reminded of the importance
of hand washing, and hand sanitizers should be readily available. Customers
at the physical Little Land store must also maintain social distance and use
hand sanitizers.
● Enhanced Cleaning and Disinfection. Increase regular cleaning and hygiene
for everyone's safety, including more disinfection of common areas and
frequently touched business surfaces. Every employee must be reminded on a
regular basis to keep their work area clean.
4.8. Operations Department Organizational Structure
The organizational structure is primarily important in decision-making. The
importance of organizational structure is especially important in communication. It
allows for the delegation of authority. The CEO is the primary leader of the organization,
followed by the Operations Head, and the rest of the personnel will report to the two.
4.8.1. Organizational Chart
The organizational structure reflects the different levels of people who work in the
organization to accomplish the company's mission and future growth plans. This diagram
depicts the organizational structure of the Little Land Children Salon. It is advantageous
to be able to visualize the entire organization through the use of a graphical presentation
for the said business.

144
Figure 60 Organizational Chart
4.8.2. Key Management Personnel
The management of Little Land is directly the CEO followed by the Operation
Head. The CEO will be the driving force behind the company. The owner will be the one
sustaining the resources needed. Meanwhile the Operation Head will be leading the
overall operation and will ensure that the vision and mission of the company will be
achieved through strategic planning.
This administration will secure the business‘ efficiency and productivity for the
development of the firm.
4.8.3. Manpower Requirement
Manpower requirement refers to estimating or projecting the number of personnel
with various skills needed over time or for a project, as well as detailing how and when
they will be acquired.

145
Table 51 Manpower Requirement
RATE/DA
POSITION YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Y
Manager 1,000 1 1 1 1 1
Accounting Staff 750 1 1 1 1 1
Utility Staff 435 1 1 1 1 1
Receptionist 435 1 1 1 1 1
Barbers/Hairstylist
500 5 5 5 5 5
s
Security Guard 435 1 1 1 1 1
TOTAL 10 10 10 10 10
4.9. Service Costing and Pricing
Cost is typically the expense incurred for making a product or service that is sold by a
company. Price is the amount a customer is willing to pay for a product or service.
Service costing helps our business to find the cost per unit for our services.
4.9.1. Cost of Materials and Equipment
The cost of material is the expense of the materials used to provide a service.
Provided below are the material costs incurred by Little Land within the course of the
provision of service.
Salon Furniture
Table 52 Cost of Salon Furniture
COST
DESCRIPTION QUANTITY PRICE/PIECE TOTAL
(PHP)
Reception desk 1 18,500 18,500
Reception chairs 3 4,200 12,600
Salon chairs 5 5,560 27,800
Carts and trolleys 2 4,325 8,650
Salon retail stands 2 1,199 2,398
Lighting 3 350 1,050
Magazine rack 1 235 235
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Salon Electric Equipment
Table 53 Cost of Salon Electric Equipment
COST
(PHP)
Hood dryers 3 1,187 3,561
Heat Lamps 4 3,865 15,460
Blow dryers 4 855 3,420
Hair straighteners 4 1,299 5,196
Hair curlers 3 1,999 5,997
Hair clippers 5 825 4,125
Washing machine
and a dryer (for 2 4,948 9,896
towels)
Air Conditioner 1 9,698 9,698
Salon Manager Equipment
Table 54 Salon Manager Equipment
COST
(PHP)
Laptop/PC 1 14,999 14,999
Phone 1 9,999 9,999

Appointment
booking / scheduling 1 2,141 2,141
software
Salon POS System /
1 1,799 1,799
cash Register
Salon Management
1 1,700 1,700
Software
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Hair Salon Tools and Equipment
Table 55 Cost of Hair Salon Tools And Equipment
COST
(PHP)
Shears and scissors 7 659 4,613
Rattail combs 8 46 368
Wide-Toothed
8 40 320
combs
Round brushes 5 130 650
Vented brushes 5 350 1,750
Paddle brushes 5 150 750
Hair cutting capes 5 49 245
Salon towels 5 99 495
Hand mirrors 5 95 475
Hair water spray
3 85 255
bottles
Hair clips 20 20 400
Aprons 5 40 200
Salon latex gloves 8 75 600
4.9.2. Cost of Labor
Table 56 Cost of Labor
DIRECT LABOR
Total Total
No. of Daily Annual
Job Position Daily Monthly
Workers Rate Wages
Rate Rate
Receptionist 1 435 435 9,570 114,840
Barbers/Hairstylists 5 500 2,500 55,000 660,000
Security Guard 1 435 435 9,570 114,840
TOTAL 7 4,110 74,140 889,680
INDIRECT LABOR
Total
No. of Daily Monthly Annual
Job Position Daily
Workers Rate Rate Wages
Rate
Manager 1 1,000 1,000 22,000 264,000
Accounting Staff 1 750 750 16,500 198,000
Utility Staff 1 435 435 9,570 114,840
TOTAL 3 3,957 87,054 576,840
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Table 57 Annual Cost of Labor
DIRECT LABOR YEAR1 YEAR2 YEAR3 YEAR4 YEAR5

Receptionist 114,840 114,840 114,840 114,840 114,840
Barbers/Hairstylist 660,000 660,000 660,000 660,000 660,000
Security Guard 114,840 114,840 114,840 114,840 114,840
889,680.0 889,680.0 889,680.0 889,680.0 889,680.0
SUB TOTAL
0 0 0 0 0
INDIRECT
LABOR
264,000.0 264,000.0 264,000.0 264,000.0 264,000.0
Manager
0 0 0 0 0
198,000.0 198,000.0 198,000.0 198,000.0 198,000.0
Accounting Staff
0 0 0 0 0
114,840.0 114,840.0 114,840.0 114,840.0 114,840.0
Utility Staff
0 0 0 0 0
576,840.0 576,840.0 576,840.0 576,840.0 576,840.0
SUB TOTAL
0 0 0 0 0
TOTAL LABOR 1,466,520. 1,466,520. 1,466,520. 1,466,520. 1,466,520.
COST 00 00 00 00 00
Table 58 Renovation Cost of Labor
TOTAL TOTAL
JOB NO. OF DAILY
DAILY MONTHLY
POSITION WORKERS RATE
RATE RATE
Plumber 1 435 435 9,570
Construction
5 460 1,840 40,430
workers
TOTAL 50,000
4.9.3. Cost of Overhead
Table 59 Cost of Electricity
TOTA
TOTAL
L
DURATIO PESO COST
APPLIANCE QUANTIT WATT COST
N OF TIME / IN A
S Y S PER
(HRS/DAY) KWH MONTH
DAY
(PHP)
(PHP)
Fluorescent 10.18
6 20 11 13.44 416.64
Lamp 3
149
Laptop /
10.18
Personal 1 450 10 45.82 1.420.42
3
Computer
10.18
Air conditioner 1 1,700 11 190.42 5,903.02
3
10.18
Hood dryers 3 1,500 3 137.47 4,261.57
3
10.18
Heat Lamps 4 250 4 40.73 1,262.63
3
10.18
Blow dryers 4 800 2 65.17 2,20.27
3
Hair 10.18
4 75 3 9.16 283. 96
straighteners 3
10.18
Hair curlers 3 200 4 24.44 757.64
3
10.18
Hair clippers 5 60 5 15.27 473.37
3
Washing
machine and a 10.18
2 850 3 51.93 1,609.83
dryer (for 3
towels)
14,684.7
TOTAL
0
Sample Computations: (Fluorescent Lamp)
𝑈 = 𝑥𝐷 𝑈 x 10.183
1000 watts
𝑈 = 20𝑥11 x 10.183
1000 watts
Cost per Unit= 2.24
Total Cost per day= Cost per unit x Quantity Total Cost per day= 2.24 x 6
Total Cost per day= 13.44
Total Cost per month= Total Cost per day x 31 days Total Cost per month= 52.58x 31
Total Cost per month= 416.64

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4.9.4. Service Price Mark-up Pricing
A strategy in which a company first calculates the cost of the service, then adds a
proportion of it as mark-up.
Pricing Scheme
The pricing method used in pricing the services of Little Land is the cost-pricing
method wherein the cost of providing the service is considered.
Table 60 Service Rate
SERVICE
Mark-
Material Labor Overhead Total Selling
Service Mix up Price
Cost Cost Cost Cost Price
(25%)
Set A: 2 service 307 54 ₱512.61
48.91 410.09 102.52
Set B: 1 service 225 27 ₱345.33
24.46 276.27 69.07
Set C: All 3 Service 390 81 ₱679.89
73.37 543.92 135.98
Table 61 Sales Projection
SERVICE
Service Estimated Annual Price per Service Projected Sales per
Mix Demand (Php) Package
Set A 4,800.00 ₱512.61 ₱2,460,543.46
Set B 5,400.00 ₱345.33 ₱1,864,790.70
Set A 6,000.00 ₱679.89 ₱4,079,368.99
TOTAL ₱8,404,703.15
4.10. Management of Quality
It is very important to manage the quality of services to ensure that the business
excels in meeting customer requirements and achieve organizational goals. The process
of managing the quality of services delivered to a customer in accordance with his

151
expectations is called quality management of service. It basically assesses how well a
service has been provided, in order to improve its quality in the future, identify problems
and correct them in order to improve customer satisfaction. Service quality management
involves monitoring and maintaining the varied services that an organization provides to
customers.
4.10.1. Determinants of Service Quality
Measuring the quality of service depends on the perception of the customer and
this could be different from the service expected. Little Land points at the following
measures or determinants of service quality to assess the difference between the expected
and perceived services:
Reliability - This is the ability, as promised, to perform the service reliably and
accurately. In The Little Land, it would be the appropriate haircut or hairstyle of the
quality service. The company conducts the service right the first time and the company
fulfills its commitments to provide quality pneumatic services.
Responsiveness - How fast the customer receives the service and the promptness
of the service delivery. With regard to the services offered by Little Land, it would be the
ability to respond to customer problems or provide solutions.
Competence - Competence implies possession of the skills and expertise needed
to perform the service. Little Land dispatched a professional and well-trained hairstylist
or barbers to provide the services that would meet the demands of the consumer.
Access – Access involves convenience and ease of contact. Little Land developed
an online real-time phone application that makes it easy and convenient for customers to
contact the company when tire services are needed.

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Courtesy - Courtesy implies the politeness, respect, consideration and
friendliness of contact personnel (including receptionists, telephone operators, etc.). Little
Land had a professional and at the same time considerate and respectful customer
relations officer who would cater for problems and needs of customers.
Empathy -Giving personalized attention, understanding the needs and customer
care. Little Land set up an online consumer website to hear from the customer's side
about the services they provided and to cater for their inquiries and the like.
Tangibles - The physical attributes such as appearance, facilities, equipment etc.
Unlike every other company, Little Land used an up-to-date equipment and the physical
facilities are visually appealing and also the appearance of the employees are well-
dressed and appear neat.
Figure 61 Customer Satisfaction Survey

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4.10.2. Quality Control Points
Table 62 Quality Control Points
ACTIVITY PROCESS QUALITY CONTROL POINTS

Welcome your customers
1
warmly. Little Land Staffs are trained with the
Ask an information to their proper handling of client
2
preferred hair service.
Give them the hair service
3
lists and its prices. Little Land will establish standards for
If necessary, the customer various components of service time and set
4 must keep waiting if the up controls to enforce these standards
server is not available.
Start of the preferred hair
5
service. Little Land provides highly trained a
End of the preferred hair professional hair stylist.
6
service.
Customer pay an exact
7
amount to the counter. Little Land responds by providing
Customer check out from the assistance to the customers.
8
Salon.
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4.10.3. Procedure for Controlling Quality
An Ounce of
Prevention
Show off our

Amenities
Train Staff
It‘s How We Say It
Maintain Legal
Compliance
Figure 62 Procedure of Controlling Quality

155
Table 63 Procedure of Controlling Quality

156
4.10.4. Policies for Complaints
The following rules and regulations governing the services at Little Land Hair
Salon have been created to provide equal opportunity and protect the rights of each
customer. As a member of Little Land, he/she have responsibility to understand and abide
by these guidelines. To ensure everyone‘s safety. Little Land workers will enforce the
usage guidelines and other posted regulations. Failure to abide by these rules and
regulations may result in modified or revoked membership privileges.
Conduct
Individuals who engage in acceptable or irresponsible behavior may have their
access to Little Land revoked or modified indefinitely as determined by the Manager.
Identification (ID) Card Requirements/ Access Control
Little Land workers must show proof of membership by presenting a valid membership
card to gain access into the Salon.
Security
Little Land encourages our members to only bring necessary items to the Salon.
Valuables should be left at home and individuals are responsible for securing personal
belongings in lockers.
Lost and Found
Lost and Found is located at Little Land reception desk.
• Lost IDs and membership cards will be placed at the Little Land reception desk
for retrieval.
• Wallet, cell phone or any valuable things will be placed in the lockable cabinet for
security purposes. These may be retrieved by the Facility Administrator on Duty.

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Media Policy
Personal photography and videotaping are permitted inside Little Land Salon.
Taking photos or video of individuals without their consent is prohibited and is cause for
immediate removal from and possible suspension.
Payments
We accept cash, checks, and credit cards.
4.11. Maintenance of Facilities and Equipment
Maintenance of the facility is defined as the activities needed to maintain the spaces,
structures and infrastructures in proper working condition to avoid failure and
deterioration. The equipment will last long with the help of routine maintenance, which
can save a lot of money in the long run. Maintaining all the facilities, equipment and tools
in the production process is very important to ensure smooth, effective and continuous
operation.
4.11.1. Maintenance of Production Facilities
Maintenance is described as the function of production concerned with the daily
problem of keeping all production facilities in good working condition. Such facilities are
typically assigned to maintenance workers in each production facility to do the
maintenance. Maintenance personnel are already well trained to perform the maintenance
of the production facilities.
Preventive maintenance (or preventative maintenance) is maintenance that is
performed regularly on a piece of equipment to reduce the risk that it may break. It is
performed while the equipment is still working so as not to unexpectedly break down. A
successful preventive maintenance plan aims at ultimately extending the life of

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equipment and tools by anticipating failures. Implementing the process guarantees
reliable and efficient performance of the operation by ensuring that equipment does not
break down when it is needed most.
4.11.2. Maintenance of Non-Production Facilities
Maintenance of the non-production facilities is crucial for the company. Such to
ensure the following facilities will operate well, thereby leading, if not, to a stoppage of
production work within the production area.
Figure 63 Building System Maintenance Card
Drainage System
Drainage System is a waterway or pipe system used to hold excess water,
including the disposal of solid and liquid waste. Inadequate drainage system planning can
contribute to frequent flood experiences during rainfall seasons. Drainage System
Maintenance is one of the company's critical parts which is hard to maintain where
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profound actions need to be applied. Drainage must be free of waste, in order to avoid
blocking the water route.
Figure 64 Drainage System Maintenance Card
Electrical System
The electrical system is considered one of the company's dangerous aspects and,
if installed incorrectly, it could cost one's own life. Proper maintenance must be followed,
otherwise high incidence of accidents would be found as common accidents are caused
by an electrocution of skinned wires by short circuiting. Strict maintenance of the
electrical system must be required.

160
Figured 65 Electrical System Maintenance Card

161
4.11.3. Policies for Breakdown and Maintenance
Figure 66 Breakdown and Maintenance Policy

162
4.12. Materials Management System
Inventory Management is a business process which is responsible for managing,
storing, transporting, sorting, organizing, counting and maintaining the inventory i.e.
goods, components, parts etc. Inventory management ensures that adequate inventory is
available as per the demand at low costs. Inventory Management makes sure that the key
processes of a company keep running efficiently by optimizing the availability of
inventory.
4.12.1. Raw Materials Inventory System
Inventory control generally refers to monitoring the supply, storage, and
accessibility of items to ensure adequate amount without excessive oversupply. One of its
goals is to ensure sufficient supplies, avoid shortages, replenish well-timed and provide
stock for variations in the lead times of material delivery and the basis for short-term and
long-term planning.
Models of Inventory Control
a. Economic Order Quantity -It is defined as the measured requests that are
ideal for the all-out factor cost needed to request and hold stock. It causes us by giving
big and sensible signs about the amounts of this order. Economic order quantity (EOQ) is
the optimal order quantity to be purchased by a company to reduce inventory costs such
as holding cost, shortages and order costs. EOQ can be calculated using the formula:
b. Reordering Point - Is characterized as the stock dimension which triggers the
choice of recharging a particular stock. The estimation is generally achieved by

163
calculating the usage in the midst of the renewal of the lead time and using the wellbeing
stocks every day. The reorder point (ROP) is the level of inventory that causes an action
to replenish the stock. It is a minimum amount of an item that a firm holds in stock, such
that the item must be reordered if stock falls below that amount. The ROP can be
computed with the formula:
ROP = (Lead Time x Daily Usage Rate) + Safety Stock
c. Safety Stocks - Is characterized as the stock dimension which triggers the
choice of recharging a particular stock. The calculation is generally achieved by
calculating use in the context of the renewal of the lead time and using it every day along
with the safety stocks. Safety stock is an additional quantity of an item that a company
holds in inventory to reduce the risk of the item being out of stock. Safety stock serves as
a buffer in case the sales of an item are greater than anticipated and/or the supplier of the
business cannot supply additional units at the scheduled time. The safety stock can be
computed with the formula:
Safety Stock = (Max. Daily Time x Max Lead Time) – (Ave. Daily Time x Average Lead
Time)
Little Land provides an excel-based program that automatically computes the
Economic Order Quantity, Forecasting, Safety stocks of the raw materials of the
company. The program that automatically computes the safety stock of every types of
material considering the daily usage and lead time. Moreover, this proposed program also
identifies the optimal number or quantity of material to order or termed as economic
order quantity through by considering the order and holding cost of raw materials per unit
as well as the forecasted annual demand of the year. Aside from the providing safety
164
stock for every type of raw material, the company consider the reorder point of every
material. In this way, each material has its own level of reorder point so that if the raw
materials will drop down to critical quantity, the program will signal to reorder stocks.
Accordingly, the program will trigger as to when to re-order raw materials or suggest
timing for materials purchasing based on the identified lead time and daily usage. This
program helps not to overstock or under stock raw materials as it triggers an action to
reorder on a specific material for replenishment.
Benefits:
● Determines the critical stocks that needs to reorder.
● Automatic update on level of raw materials upon every purchasing and
releasing.
● Alert critical condition when the stock level drop down.
● Update the stock level of raw materials.
● Helps track the materials that goes in and goes out.
4.12.2. Warehousing Management System
Unlike other companies that produces goods, Little Land specializes in providing
hair salon services. With this, there are only few materials necessary to operate. Hence, it
is not essential to establish a warehouse however the company has put up a room to be
used for the storage of supplies including salon materials and equipment, office and
cleaning supplies. The storage room is located in the back part of the salon store besides
the staff room shown on the layout presented below.

165
Figure 67 Little Land Salon’s Layout
The policies that define the general conduct of Warehouse operation of Little
Land are:
1. Supplies should be put in each department through its functions in its assigned
storage room.
2. Only one authorized person is allowed in the stock room to get the requested
supplies.
3. Only he / she is allowed to record very products which are demanded and
published in the stock rooms log book.

166
4. The approved individual will count a period at random once a week and send a
report to the administrator.
4.12.3. Inventory Control Procedure for Operating and Maintenance
Supplies
Table 64 Operating and Maintenance Supplies Economic Order Quantity
HOLDING
ANNUAL ECONOMI
UNIT ORDERIN COST
MATERIAL UNIT DEMAN C ORDER
COST G COST PERCENTAG
D QUANTITY
E
Office Supplies
Ballpen box 12 70.00 7.43 20% 4
155.0
Bond paper ream 24 7.43 20% 3
0
Folder pc 24 5.00 7.43 20% 19
doze
Paper clip 80 4.00 7.43 20% 39
n
Marker pen pc 36 35.00 7.43 20% 9
Scotch tape pc 24 22.00 7.43 20% 9
doze
Pencils 12 90.00 7.43 20% 3
n
Staples box 12 45.00 7.43 20% 4
120.0
Receipts ream 40 7.43 20% 5
0
Housekeeping / Cleaning Supplies
Dishwashin
bottle 48 69.00 7.43 20% 7
g soap
Bathroom 230.0
bottle 24 7.43 20% 3
cleaner 0
Bathroom 220.0
bottle 12 7.43 20% 2
freshener 0
Tissue paper roll 350 9.30 7.43 20% 53
Rags pc 500 2.00 7.43 20% 136
Hand 145.0
bottle 48 7.43 20% 5
Sanitizer 0
Salon’s Equipment Supplies
Shears and 659.0
pc 12 7.43 20% 5
scissors 0
Rattail
pc 12 46.00 7.43 20% 4
combs
167
Hair cutting
pc 20 49.00 7.43 20% 5
capes
Salon
pc 20 99.00 7.43 20% 5
towels
Hand
pc 15 95.00 7.43 20% 6
mirrors
Hair water
bottle 12 85.00 7.43 20% 3
spray bottles
Hair clips box 50 20.00 7.43 20% 3
Aprons pc 20 40.00 7.43 20% 3
4.12.4 Provisions for Pilferage
Surveillance practices reduce theft and pilferage in the workplace. The company
had put up 6 surveillance cameras in different location within the main office. Little Land
will tolerate no employee pilferage, theft, or stealing of any kind, including fraudulent
time card reporting.
Figure 68 Provisions of Pilferage

168
Figure 69 Employee Pilferage Policy

169
4.13. Supply Chain Model
The supply chain design of the company describes how the business makes partners
with specific suppliers and brings service to the markets. It consists of the suppliers,
company and eventually customers, all working together to bring value to the customer.
Figure 70 Supply Chain Model
4.13.1. Supplier Name and Location
The main functions of the suppliers are to provide an entity or organization with
the material, product or service. Suppliers are vital in launching a business since service
provision is highly dependent on the availability of the materials and equipment
necessary to run the business. Little Land have partnered with specific suppliers and
distributors to create a superior value delivery network. Its suppliers are the following:
Table 65 Supplier Name and Location
SUPPLIER NAME LOCATION

336 San Antonio Village, V Rama Ave, Cebu City,
Sereese Beauty Cebu
6000 Cebu
HMB SALON SUPPLIES
A. Del Rosario St, A. Del Rosario St, Mandaue City,
TRADING
6014 Cebu
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New Summit Colors

Distribution Inc. Cebu Benley Bldg., J. De Veyra St. North Reclamation
Branch Area, Cebu City, 6000 Cebu
Dy & Ar Salon & Spa

Supply 2 1104 Silay, Quezon City, Metro Manila
Beauty World Sales and Unit 1542 City & Land Mega Plaza Building, ADB
Marketing Avenue, Corner, Garnet Rd, Ortigas Center, Pasig,
1605 Metro Manila
4.13.2. Customers Name and Location
In a business, the primary factor to consider is customers. Customers are the ones
that benefit from the company's services. Potential customers of Little Land are children
that wants to have their hair cut and styled.
4.14. Green Manufacturing Practices
Green manufacturing practices promote the usage of less natural resources, minimize
pollution and waste, recycle and reuse materials and in their process‘s moderate
emissions Little Land employs green manufacturing practices including proper waste
management in its day-to-day operations Waste management is the practices and actions
needed from its inception to final disposal to manage the waste. It includes waste
collection, transportation, treatment, and disposal, along with monitoring and regulating
the waste management process. This section presents the types of waste the company
generates and how it affects the community.

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4.14.1. Types of Wastes Generated
Legal Requirements
Businesses are legally obliged to manage and dispose of all wastes effectively. If
they fail to do so, they open themselves up to legal action from local authorities, if there
any damages caused due to their negligence.
Environmental Impact
When waste is disposed of or recycled in a safe, ethical, and responsible manner,
it helps reduce the negative impacts of the environment. Ensuring that waste management
procedures are carried out with regularity helps ensure that fewer waste materials go to
the general waste stream. In turn, this also helps reduce different forms of pollution.
Improved Human Health
The improper handling of different types of waste materials and shoddy disposal
methods can result in serious medical conditions. If you do not follow the right kind of
waste management practices, it can result in extensive air and land pollution. This can
affect the health people and can give rise to respiratory problems as well. Any kind of
hazardous wastes that seep into the water and soil can affect animals and plants. If
humans consume these animals or plants, that can also affect our health.
4.14.2. Methods of Waste Disposal
Wherein the operation is ongoing, the wastes that produced daily naturally can‘t
avoid. For it to maintain a cleanliness of the environment the management must
implemented the proper garbage disposal. There will be 5 steps to do the proper garbage
disposal these are the following:
● Segregate the biodegradable, non-biodegradable and recyclable

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● Monitoring the waste in productions/company
● Collection of the wastes bins to avoiding bad smells or overspills resulting
from waste sitting uncollected for too long
● Transporting the waste from the collection point to a processing plant
● Then do recycling and waste disposal
Figure 71 Waste Disposal Facility
4.14.3. Impact of Wastes to the Community
Improper disposal of waste comes with some of the really harmful effects that can
be felt earlier while others take time. It really causes Community and Environmental
pollution. In Little Land Children Salon will ensure proper disposal of the waste
produced. And the group that surrounds in the said business has nothing to worry about
because then it takes the responsible for the disposal of the waste.
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4.14.4. Policies for Waste Management
In the organization Little Land Children Salon strategy is to maintain a high
degree of dedication in our business operations to good environmental policies. This
policy is intended to be implemented by reducing waste generated by good procurement
practices of materials used in the company and reuse and recycle materials wherever
possible.
WASTE MANAGEMENT POLICY
Common maintenance procedures:
● Proper segregation of the waste must be followed all the time.
● All trash bins should be left empty before closing.
● Waste will be collected by the garbage truck from time to time.
● All waste should be all disposed at the designated area 30 minutes before
closing.
● If any problems or concerns are found, take actions immediately or report to
the authorized personnel.
4.14.5. Provisions for Sustainable Production
Even in industries where waste products are massively generated, such as in the
manufacturing industry, it is necessary to implement policies or provisions when
considering the prevailing environmental issues, especially on waste. Because of this,
waste management for production efficiency is being implemented by businesses or
organizations to minimize waste in order to benefit the environment.
The policies that will enforced in the company:

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● Waste segregation must be practice by every worker when throwing their
garbage. There are different trash bins namely: biodegradable, non –
biodegradable and hazardous materials.
● A Schedule trash bin clean up to avoid any pests from living in it to avoid
any contamination and health – related problems because of indisposed trash
bins when it is already full or overflowing.
● Practice of recycling is enforced in the company particularly bottles and
other plastic materials to lessen the waste in the environment.
4.15. Plant Layout and Locations
Within this section each will be provided with the space requirements and space
allocations. One of the most critical considerations for making a company is the layout of
the factory. The distance needed for the positioning of machines, equipment and other
business factors which is part of the space allocations. A well-built layout of the plant is
concerned with optimal and effective use of available resources at the lowest operating
costs.
4.15.1. Structural Limitations
The structural limitations involve the different limitations or constraints that are
recognized in the operations upon start-up. This section includes the space constraints,
manpower complement, production facilities and equipment, and materials inventory.

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4.15.2. Space Constraints
The proponents have decided to rent a space (5,000 per month) for the children
hair salon as it is the most economical way since the company is just medium enterprise
designed to accommodate a medium volume of demand.
Figure 72 Rented Commercial Space
The rented commercial building will be divided into different areas necessary to
successfully run the operation. This area includes the following:
Table 66 Functional Areas
FUNCTIONAL
DESCRIPTION
AREA
This area designated for all higher positioned personnel (Salon
Manager, Finance Manager, Bookkeeper and Human Resource
Administrative
Staff) resides in the company. It is also where the clients or
Office
customers will proceed when they have transaction to be deal with
the company.
Children Play This is where the kids play while waiting for their turn to have their
Room hair styled.
Materials and
This is where the salon materials and equipment were stored.
Equipment Area
This area is used for keeping the personal belongings of the salon
Locker Room
staff. It also served as the resting place of the salon staff in times
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that they not in the field.

This is a room where the workers can use when they experience the
Comfort Room
calling of nature and also serve as hygiene facility
Utility and
This is where the cleaning and maintenance equipment were stored.
Maintenance Room
Waste Material This area is where waste material mainly the office waste materials
Area or trashes were stored before the disposal.
Customer Waiting
This area is where the walk-in customers waiting area.
Area
Taking into account that the commercial space is not really designed for the
functional areas of the company, a renovation of the space has to be done. Additional
structures and utilities were needed to be put up to ensure that the operation would run
smoothly as possible.
Table 43 below entails the needed materials with its corresponding costs for the
renovation of the space.
Table 67 Material Cost of Renovation
RENOVATED UNIT
MATERIALS QTY UNIT TOTAL
AREA COST
Electrical Wires 33.00 35 meter 1,155.00
3 Gang Light Switch 240.00 4 piece 960.00
Bulb Socket 142.00 5 piece 710.00
Fluorescent Lamp
315.00 6 piece 1,890.00
Housing
Electrical Circuit Breaker 390.00 1 piece 390.00
Insulated Staple Wire 35.00 2 box 70.00
Convenience Outlet 119.00 10 piece 1,190.00
Junction Box 169.00 6 piece 1,014.00
Wall Cable Cover 129.00 25 piece 3,225.00
Cable Clamps 8.00 30 piece 240.00
PVC Pipes 64.00 15 Meter 960.00
Fittings 159.00 4 piece 636.00
Plumbing
Plumbers Tape 92.00 1 roll 92.00
Faucet 245.00 2 piece 490.00
Hollow Blocks 16.00 250 piece 4,000.00
Cement 265.95 12 bag 3,191.40
Walls
Wrought Iron 155.00 20 piece 3,100.00
Sand 1,232.05 3 cu.m 3,696.15
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Gravel 1,207.05 2 cu.m 2,414.10

Paint Thinner 89.00 15 liter 1,335.00
Lacquer Thinner 98.00 15 liter 1,470.00
Enamel Paint 180.00 45 liter 8,100.00
Total 40,328.65
4.15.4. Space Requirements
The space requirements are involving in the floor area required for the equipment
is determined by the specific systems to be installed, the location of columns, the floor
loading capacity, and the provisions for future expansion.
4.15.4.1. Production Facilities and Equipment
Material, tools, equipment needed in the operation are being specified per area of
activities. Table shown below is the machines or equipment used in the service.
Table 68 Salon Furniture
NAME IMAGE FUNCTION QTY

This is where the salon receptionist greets
customers upon their arrival, answer
Reception 1
clients' questions about services via
Desk
phone, email or in person and process
transactions.
Reception
Where the salon receptionist is going to sit 3
Chairs
Children Allows comfort to a stylist for different

Salon treatments as well as for children to have a 5
Chairs relaxed environment.
Hair Styling
Where the children hair cut being done 5
Stations
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Backwash Provide an all-in-one unit or be grouped

3
Units into a rank in a salon wash area.
This is a stable and durable beauty salon

Carts and tool cart, widely used in hair salons, foot
2
Trolleys bath shops, beauty salons, hairdressing
schools, etc.
Compact product and retain display shelf

Salon Retail with small foot size. Show cases the
2
Stand products for retail or advertise your hair
care and toys.
Table 69 Salon Electric Equipment
NAME IMAGE FUNCTION QTY
A hood dryer has a hard plastic dome that

Hood Dryers 3
fits over a person's head to dry their hair.
A device that blows ambient or hot air

Blow Dryers over damp hair to speed the evaporation 4
of water to dry the hair.
Hair straightener temporarily straightens the

4
Straighteners hair by applying heat to the hair shaft.
This produce looser, flat curls and beach

Hair Curlers waves since the hair is curled with less 3
tension than a traditional curling iron
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A trimmer is designed for edging,

outlining, dry shaving and light shaping
Hair Clippers on smaller areas such as the back of the 5
neck, around the ears, around sideburns
etc.
This agitates your clothes in a soapy suds

Washing
and water to remove any dirt and stains
Machine (For 2
before spinning to drain the water after
Towels)
the cycle.
4.15.4.2. Materials Inventory
Material inventory are the compilation of supplies that are needed in the provision
of service.
Table 70 Materials Inventory
ANNUAL
NAME IMAGE UNIT
QUANTITY
Salon Supplies
Bleach Safe Salon Hand Towels pc 50
Professional Salon Hairdressing

pc 50
Cape
Hair Styling Clips box 20

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Hair Dye Coloring Brushes set 20
● Professional hair dye gloves pack 50
● Hair color processing caps pack 50
Cleaning Supplies
Dishwashing Soap bottle 50
Bathroom Cleaner bottle 24
Bathroom Freshener can 12
Tissue Paper roll 350

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Hand Sanitizer bottle 50
Bathroom Dustpan pc 1
Office Supplies
Ballpen box 12
Pencil box 12
Marker Pen box 36
Bond Paper (Short & Long) pcs 24
Folder (Short & Long) pcs 24

182
Paper Clip box 80
Scotch Tape roll 24
Staples box 12
Receipts pad 40
4.15.5. Worksheet and Activity Relationship Diagrams
The activity relationship is a diagram showing the relationship between each
station and the departments, offices or service area. This classifies and analyzes the
closeness and the arrangement of the different areas that determine the best position in
relation. The use of closeness codes represents the relationship between stations,
departments, offices, or service area.

183
Table 71 Closeness Code
RATING ATING
A Absolutely Necessary 6
E Especially Important 5
I Important 4
O Ordinary Ok 3
U Unimportant 2
X Not Desirable 1
Figure 49 shows the space relationship diagram of the 9 areas in the company.
These 9 areas are rated based on the desired closeness of each area to the other with the
used of closeness codes presented above.
Figure 73 Activity Relationship Diagram

The table below shows the calculation of total closeness rating (TCR) with the value presented on the closeness code
on table below.
Table 72 Total Closeness Rating
A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A E I O U X TCR RANK
A1 - E O A A I U I U O 2 1 2 1 2 0 32 6
A2 E - A O O A E A U E 3 2 0 2 1 0 36 3
A3 O A - A A O U A U A 4 0 0 2 2 0 34 4
A4 A O A - U U X I U O 2 0 1 1 3 1 26 8
A5 A O A U - E U E U O 2 2 0 1 3 0 31 7
A6 I A O U E - I A O I 2 1 2 2 1 0 33 5
A7 U E U X U I - A O O 1 1 1 1 3 1 25 9
A8 I A A I E A A - A A 5 1 2 0 0 0 43 1
A9 U U U U U O O A - I 1 0 0 2 5 0 22 10
A10 O A A O O I O A I - 2 1 2 4 0 0 37 2
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185
4.15.6. Space Allocations
Identifying a given company's space allocation will help optimize the company's
space available. The company should consider not only the horizontal allocation space
but also the upper portion of the establishment.
Table 73 Space Allocations
ITEM QUANTITY DIMENSION (m) TOTAL AREA (m²)

Administrative Office with Stockroom
Table 3 1.52 x 0.52 2.37
Office Chair 3 0.57 x 0.54 0.92
Cabinet 3 2.02 x 0.52 3.15
Filing Cabinet 1 0.41 x 0.49 0.20
Trash Bin 1 0.31 x 0.31 0.19
Safe 1 0.76 x 0.71 0.53
Styling Area
Children Salon Chair 5 0.86 x 1.11 4.77
Styling Station 5 0.95 x 1.20 5.70
Dryer Area
Hood Dryer 4 1.21 x 1.60 7.35
Shampoo Area
Backwash Unit 4 3.3 x 1.52 20.06
Reception Area
Chair 4 0.57 x 0.54 1.23
Mini Table 1 0.80 x 0.80 0.64
Reception Table 1 1.52 x 0.52 0.79
Reception Chair 1 0.57 x 0.54 .30
Storage Area
Display Racks 3 2.5 x 0.60 6.00
Comfort Room
Lavatory 1 1 x 0.80 0.80
Bowl 1 0.50 x 0.50 0.25
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4.15.7. Summative Space Requirements and Allocations
Table 50 shows the total space area required of Little land services with its
corresponding space allowance.
Table 74 Total Space Area Required
WORKING
TOTAL SPACE (sq.meter)
ENVIRONMENT
Administrative Office 7.38
Styling Area 10.47
Dryer Area 7.35
Shampoo Area 20.06
Reception Area 2.96
Storage Area 20.06
Comfort Room 1.05
Total 69.35
4.15.8. Layout of Functional Areas
Figure 74 Administrative Office

187
Figure 75 Storage Room
Figure 76 Bathroom Area

188
Figure 77 Reception Area
Figure 78 Styling Area

189
Figure 79 Dryer Area
Figure 80 Shampoo Area

4.15.9. Workflow Diagram
Figure 81 Workflow Diagram
190
4.15.10. Floor Plan
Figure 82 Floor Plan
191
192
4.15.11. Location Plan and Analysis
Figure 83 Location Plan
Table 75 Location Plan and Analysis
DECISION
DESCRIPTION
CRITERION
Plant Location Mactan Town Center
Location Basak Lapu-Lapu City
Area 240 sq.m
Working This space is for the suitable workers to perform the operation,
Environment and is enough to accommodate customer‘s demand.
4.15.12. Simulation Analysis
Figure 84 Simulation Analysis
193
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CHAPTER V
MANAGEMENT ASPECT
5.1. Management during Pre-Implementation Stage
Activities during the Pre-operating Period
Table 76 Activities during the Pre-operating Period
DURATION
ACTIVITY DESCRIPTION DATE
(DAYS)
November 1,2022 – January
Feasibility study 130
31, 2023
Obtaining Finance 10 February 1 – 10, 2023
Negotiating with the Administrator
for
1 February 11, 2023
obtaining the commercial space for
the business
Process all the leasing reequipments 3 February 12- 14, 2023
Acquisition of needed materials and
5 February 15-20, 2023
finalization of the business space.
Purchasing of all the equipment,
furniture, supplies, devices, February 21 – March 8,
15
materials, and etc. Proper placement 2023
and arrangement follows.
Obtaining telephone connections
and
installation of air conditioners, 2 March 9 -10, 2023
CCTV
cameras and fire extinguishers
Verify, reserve and register the
company name with the Security of 10 March 11- 20, 2023
Exchange and Commission.
Obtaining business permit and other
25 March 21 – April 14, 2023
Requirements
Preparation for upcoming business
21 April 15 – May 5, 2023
launching
Creating advertising materials 3 May 6 – 8, 2023
Ordering of store signboard 1 May 9, 2023
From creation to installation of the
10 May 10 – 19, 2023
signboard
Hiring and training of employees 23 May 20 - June 11, 2023
Overall Preparedness inspection of 5 June 12 – 16, 2023
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the business
Business launching 1 June 17, 2023
It takes two sixty-three (263) days before the business will be launched and
ideally on the month of June year 2023, Salon for kids will be offering its service to the
market.
Precedence Table
Table 77 Precedence Table
ACTIVITY RESPONSIBLE DURATION

ACTIVITY DATE
DESCRIPTION PERSON (S) (DAYS)
November
1,2022 –
A Feasibility study Proponents 130 -
January
31, 2023
Obtaining February 1
B Owner 10 A
Finance – 10, 2023
Negotiating with
the Administrator
for
February
C obtaining the Owner 1 B
11, 2023
commercial space
for
the business
Process all the February
B,
D leasing Owner 3 12- 14,
C
reequipments 2023
Acquisition of
needed materials February
E and Owner 5 15-20, D
finalization of the 2023
business space.
Purchasing of all
the equipment, February
furniture, 21 – D,
F Owner 15
supplies, devices, March 8, E
materials, and etc. 2023
Proper placement
196
and arrangement
follows.
Obtaining
telephone
connections and
installation of air March 9 -
G Personnel 2 F
conditioners, 10, 2023
CCTV
cameras and fire
extinguishers
Verify, reserve
and register the
company name
March 11-
H with the Security Owner 10 B
20, 2023
of
Exchange and
Commission.
Obtaining
March 21
business permit
I Owner 25 – April 14, H
and other
2023
Requirements
Preparation for
April 15 –
upcoming
J Owner 21 May 5, I
business
2023
launching
Creating
Marketing May 6 – 8,
K advertising 3 J
Specialist 2023
materials
Ordering of store May 9,
L Manager 1 K
signboard 2023
From creation to Signboard maker
May 10 –
M installation of the / creative sign 10 L
19, 2023
signboard designer
Hiring and May 20 -
N training of Management 23 June 11, J
employees 2023
Overall
Preparedness Owner and June 12 –
O 5 N
inspection of Management 16, 2023
the business
Business Marketing June 17,
P 1 N,O
launching Specialist 2023
Network Diagram
Figure 85 Network Diagram
197
Project Duration Time
The project starts on January 21, 2023. The given activities with corresponding duration will be completed on 13th day
of October, 2023. There are 130 days activity for the feasibility study which made it as the activity with the longest duration.
Figure 86 Project Duration Time
198
199
Table 78 Critical Path
ON CRITICAL
ID NO. ACTIVITY ACTIVITY TIME
PATH
1 A Yes 130
2 B Yes 10
3 C No 1
4 D Yes 3
5 E No 5
6 F Yes 15
7 G Yes 2
8 H No 10
9 I No 25
10 J No 21
11 K No 3
12 L No 1
13 M No 10
14 N No 23
15 O No 5
16 P No 1
Completion Time 265 days

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5.2. Management during Normal Operation
5.2.1. Form of Organization
The business structure is one of the important decisions that should be made by a
business owner. The organizational form selected by a business owner will have an effect
on the owner's legal liability and tax statement. Little Land employs partnership as a form
of business organization, particularly general partnership. A general partnership is an
agreement between two or more entities to finance or run the business. 'Partnership' is an
alliance of at least two people who pool and share their monetary and administrative
assets and agree to a business. The people who form partnership are independently
known as partners, and all in a firm or partnership firm. Shares are anticipated to be
equally distributed except when a contract has a different condition. Partnership Merits
and limitations are discussed below:
Merits of Partnership
1. Easy to establish. Despite multiple legal conventions a partnership can be
effectively formed. Since it is not mandatory to have the firm enrolled, a basic
assertion is adequate to make an organization firm, either in oral, composing
or suggested form.
2. Availability of higher funds. Since at least two partners are in a position to
start a partnership, it may be possible to pool more assets in comparison to the
sole ownership form of business association.
3. Better decisions. Each partner in a partnership firm has the right to participate
in the business executives. Every real decision is made in discussion with the
201
partners and with their approval. Therefore, aggregate wisdom wins and there
is less room for carefree and hasty choices.
4. Flexibility. The partnership is an adaptable organization. After the approval of
all partners, the partners can choose to change the size or nature of the
business or region of its task.
5. Sharing of risks. The firm's losses are shared by each of the partners in the
same way or according to the concurred proportion.
6. Keen interest. Since the partners share the profit and bear the losses, they are
keenly enthusiastic about the company undertakings.
7. Benefits of specialization. According to their specialization and learning, all
partners take an effective interest in the business. In an organization firm that
provides legal consultancy to individuals, one of the partners can handle
common cases, one in criminal cases, another in work cases, and among
others, depending on their specialization area. Likewise, at least two
specialists of various specialization can begin a facility in organization.
8. Protection of interest. The privileges of each partner and his/her advantages
are fully secured in a business association type partnership. When a partner is
unlikely to be disappointed with either decision, he can order the business to
disintegrate or may withdraw from the association.
9. Secrecy. The firm's business secrets are revealed only to its partners. The
unveiling of any data to the recluses is not required. Furthermore, distribution
of the company's annual reports is not required.

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Limitations of Partnership
1. Unlimited liability. Partnership firm's most critical disadvantage is that the
partners' risk is boundless. The partners are subject by and for the firm's debt
and commitments. At the end of the day, their own properties can even be
used to cover the obligations of the company.
2. Instability. Each partnership firms have uncertain life. The demise,
bankruptcy, inadequacy or, on the other hand, any partner's retirement ends
the firm. Not only can any disagreeing partner pull out for organizational
disintegration whenever it is necessary.
3. Limited capital. Since the number of partners cannot exceed 20, the limit to
collect subsidies remains constrained when compared with a business
organization where the amount of investors is not limited.
4. Non-transferability of share. Any partner's offer of enthusiasm cannot be
exchanged with different partners or with the outcasts. So it causes difficulty
for the partner who has to totally and incompletely trade his bid to others. The
main option is disintegration of the firm.
5. Possibility of conflicts. Each partner in a partnership firm has an equal
opportunity to participate in the administration. Additionally, each partner can
put his or her opinion or perspective before the administration with regard to
any issue whenever appropriate. Thereafter, rubbing and fighting among the
partners occurs occasionally. Assessment contrast can offer the ascent to
fights and lead to the company's disintegration.

5.2.2. Organizational Structure
This section displays the organizational chart of the company, with the company's internal structure. It identifies each
employee's job and function, and where they report to within the organization.
Figure 87 Organizational Structure
203
204
5.2.3. Personnel of Business
This section shows the qualifications required by each personnel in the business.
It outlines the job description of each workers required to achieve organizational goal.
The main aim of job description is to describe the principal roles and obligations involved
in a particular job. Job description should be based on a detailed work review and must
provide summary as concise as possible and as realistic. Through this the company may
then search for an acceptable employee for a particular job. Below are the requirements
of each job needed to qualify as an employee of The Little Land.

205
Figure 88 Salon Manager’s Job Description

206
Figure 89 Bookkeeper’s Job Description

207
Figure 90 Utility Personnel’s Job Description

208
Fgure 91 Hair Stylist’s Job Description

209
5.2.4. Human Resource Programs
Human Resource Management is a management function that recruits, motivates
and retains employees within a company. It deals with any kind of employee-related
issues such as hiring, training, growth, compensation, motivation, communication and
administration. Human Resources is the department which recruits, hires, and trains staff.
They are responsible for staffing the company and meeting any needs of the employees.
Figure 92 Human Resource Program
Figure above shows the different programs that human resource department
established to effectively manage human resources for the success of the organization.
210
Human Resource Planning and Forecasting
Human resource planning‘s basic purpose is to have a reliable estimate of the
number of employees required, with corresponding skill requirements to achieve
organizational goals. Nonetheless, it has to be forecast to get the correct estimate. Human
resource forecasting, by contrast, is a process of determining or predicting the company‘s
needs through data and models. Forecasting is used to understand the expertise and
performance level of the existing workforce by looking at historical records and business
reports in order to help identify any differences. By forecasting, the HR department can
determine the number and types of employees needed to meet its strategic goals in the
future.
Recruitment
Recruitment is the core function of managing the human resources. In order to
fill the vacancy within the company, it is the process of identifying, screening,
shortlisting and recruiting potential human resources. A method of choosing the right
person, at the right time, for the right position. The process begins as soon as there is an
identified need for additional staff. Ideally it is the outcome of the effective planning and
forecasting of human resources. In order for Little Land to meet the best possible
applicant, it is important to take into account the individuals‘ educational credentials,
experience, expertise and skills when recruitment takes place.

211
Selection
Selection is the method of choosing or selecting the right candidate who is ideally
suited for the job. It is a method of interviewing candidates, evaluating the qualities they
acquire for a specific job and then choosing the best candidate. Selecting the right
candidates for the right positions would help the company achieve its desired objectives
and goals. When choosing the right candidate, Little Land always ensures that the
applicant has the requisite qualifications, abilities, experience and expertise needed to
perform the duties of the job in a well-organized way.
Orientation
Orientation is the organized and scheduled introduction to their employers, co-
workers, and the community of newly hired employees Before the new employee
formally begins his / her job at Little Land, the company will conduct an initial phase that
will include an summary of the organization‘s history to the newly recruited employee,
general details on his / her daily work schedule, business structure and activities, safety
measures and regulations, and a thorough description of the organization‘s policies, work
rules and employee benefits. It is important to have this program because it offers concise
and reliable information to new employees to make them more comfortable in the job.
This also helps new employees boost their morale and adjust to the job more quickly.
Performance Evaluation
Performance Evaluation is used to support decisions relating to training and
career growth, compensation, transfers, promotions, and termination of jobs or reduction

212
in force. Performance Management is a partnership between an employee and his / her
supervisor to optimize performance, create effective feedback and communication,
promote employee growth and development, and establish priorities that are aligned with
the strategic plan of the organization. On the other hand, performance appraisal is the
process of evaluating employee performance by comparing current performance with
existing standards that have already been communicated to employees and then providing
employees with feedback on their level of performance in order to enhance their
performance as required by the organization.
Training and Development
To enhance each Little Land employee‘s knowledge and skills, the employees
will undergo various types of activities that provide them with information and
instructions on how to better perform specific tasks. This program is set up to improve
the employees‘ competence and to motivate them. Training and development
opportunities need to be provided so that they can be on top and keep them improving
their skills and work efficiency which will also lead to business success.
5.2.5. Compensation Plan and Benefits
The morale of employees whether in an organization or company, office workers
or production worker is a key concern. Providing them with a enough benefits and
incentives will motivate them to do their particular tasks. It will gradually improve or at
least sustain the company‘s productivity. As much as we value the customer as our end
user of the product, as a business that cares so much about sustainable growth and
213
minimal turnover, the organization‘s labor force should be given what‘s just for them and
in turn motivate them to be at their best level while working the company.
Benefits
Benefits are money that a business spends, such as those made under an insurance
policy or an employment agreement or a program of public assistance. There are also
privileges, benefits, legal and financial compensation for workers, which are typically
required by the government.
Here are the basic benefits for employees covered by the Philippine Labor Code:
13th Month Pay
In the Philippines, the 13th month pay is equivalent to 1/12 of the normal wage an
employee earns during the year. If a Filipino employee has worked for less than a year
(regardless of the reason for terminating his job), the amount due to him shall be
determined by dividing the total salary he earned by the number of months he was
employed. The basic salary calculation does not include allowances and other incentives
which are not recognized or integrated as part of the daily compensation of the employee.
The items taken off the list are: cash equivalent of unused holiday and sick leave credits;
overtime, premium, night and holiday differential pay and living allowance.
The 13th month pay Is determined based on the 1/12 of an employee's overall
basic salary within a calendar year, or the basic monthly salary divided by 12 months for
the whole year. The workers will be paid the 13th month‘s pay no later than December 24
of every business year.

214
PAG- IBIG Fund
PAG-IBIG Fund is a provident savings system that provides housing loans to
government employees in the Philippines and to self-employed persons who choose to
join the Fund. PAG-IBIG member employees who earn monthly compensation for Php
1,500 and below will contribute 1% per month, while those above contribute 2% per
month. PAG-IBIG member employees are legally mandated to make a counterpart
contribution of 2% per month of the monthly compensation of PAG-IBIG member
employees. A PAG- IBIG member contributing 1% of his compensation will
automatically triple his monthly savings with the additional employee counterpart
contributions, while PAG-IBIG member contributing 2% per month will immediately
double its savings.
SSS Membership
The SSS was created to provide protection for private employees and their
families from disability, sickness, old age, and death. The Government Service Insurance
System (GSIS) is an equivalent system for government employees in Philippines. The act
allows all the workers to become members of the SSS. Their contribution will be based
on their monthly gross income reflected in the schedule of contributions.
Phil Health Insurance
Phil Health is governed by the Philippine National Health Corporation, which is
established to provide practical payment systems for adequate medical care to workers in
215
the Philippines. Philippine Health Insurance (Phil Health) was created for a
comprehensive and integrated approach to health development. The monthly payment
contributions depend on the income class to which the employees belong.
Sick Leave
Employees who are unable to report to work because of illness or disability can
apply for a sick leave. Employees may also take advantage of sick leave if they have sick
family members and care needs. This is usually equivalent to 15 days and can be
converted into cash by year end. One can claim sick leave on the day the employee
returns to work. In which an employee exceeds three days or has filed in advance, a
medical certificate must accompany the submitted sick leave.
Maternity Leave
Women who have served in the government sector for at least two years are
entitled to make use of 60 days of paid maternity leave in addition to their holidays and
sick leave. Maternity leave is also available for female members of SSS who have made
three monthly contributions, at least twelve months before giving birth. Standard delivery
provides 60 days of fully paid leave, while 78 days for delivery of caesareans. Every
qualified pregnant woman in the private sector, whether married or unmarried, has the
right to a 60-day maternity leave in the case of normal delivery, abortion or miscarriage,
or 78 days in the case of Caesarean delivery During such leave, the pregnant woman shall
receive regular maternity benefit for 60 or 78 days, as the case may be, equal to 100% of
her average wage credit. The maternity benefits are only available for the first four
216
deliveries or miscarriages. The employer is expected to advance the full maternity benefit
to the pregnant female employee within 30 days of the application for a maternity leave.
5.2.6. Management Policies and Regulations
Figure 93 Company Policies and Regulations

217
CHAPTER VI
LEGAL AND TAXATION ASPECT
This section presents the business' legal aspect of all the procedures it will
undergo as they register the company and also the type of tax on which the company will
depend. This also includes methods about how organizations' representatives and staff
seek equal treatment from the perspective of tax assessment.
6.1. Legal Aspect
Business registration is a key step in establishing a business. Every start-ups should
follow the rules and procedures for setting up a business by obtaining registrations from
the various government agencies. Little Land is a form of business partnership and should
acquire various permits and certificates to operate legally.
DTI Registration
Registration of a business name is required in the Philippines. It is illegal for anyone,
in accordance with RA 3883 or the Business Name Law, to use any name for a business
other than the real name of the owner without first registering the business name with the
Department of Trade and Industry or DTI. Securing your trade name gives you the
legitimate and exclusive right to use it during the duration of its validity
218
Figure 94 Sample DTI Registration Form

219
Securities and Exchange Commission
Steps in Registration:
1. Verify/reserve proposed name with the Name Verification Unit.
2. Draw up the articles of Partnership. This is equivalent to the Articles
ofIncorporation, which is one of the required documents for corporations.
3. Present 6 sets of the accomplished forms and documents for pre – processing
at the CRMD. Only complete application documents are accepted for
processing.
4. Pay the filing fees to Cashier.
a. Registration fee - PHP 2,695 (PHP 1,667.00 filing fee)
b. Documentary stamps - Php 15.00
5. Claim the certificate/license from the releasing Unit, records division upon
presentation of the official receipt issued for payment of filing fee.
It will take 24 hours from the date of filing to process the application, grantingthat
all thee required documents are submitted and all information therein provided is inorder.
220
Figure 95 Sample Barangay Clearance

221
After getting the barangay clearance, you proceed to the city hall (BPLO
BusinessPermit and Licensing Office) where they will give you a form to fill up. You
must submitthe duly filled up and notarized form.
Business Permit
Business Permit or Mayor's permit is eluded to as business permit which
beingprepared in the city hall leader's office. Verifying the grant of a city hall leader
guarantees that your business is protected to work under the statute of your city. Simply
after the businessenrolment with DTI, securities, and trade commission would you be
able to acquire a Mayor'slicense. City hall leader's license must be re-established every
year.
Requirements in applying for a Mayor’s Business Permit:
⮚ Barangay Clearance
⮚ Certificate of SEC Registration/ Articles of Partnership
⮚ Public Liability Insurance
⮚ Authorization Letter of Owner with ID
⮚ SSS (Certification/ Clearance)
⮚ CTC (Community Tax Certificate – CEDULA)

222
Figure Sample Business Permit Application Form
Figure 96 Application Form for New Business Permit

223
Sanitary Permit
The Sanitary Permit is a certification in writing of the Municipal Health
Officerissued to establishment complies with the existing minimum sanitation
requirements uponevaluation or inspection conducted in accordance with Presidential
Decrees No. 522and 856 and local ordinances. This will be necessary to protect its
constituents from anyfood - borne diseases and other diseases caused by poor sanitation.
REQUIREMENTS:
A. For small Business Establishment: (Retailer, Wholesaler, Trading, Services,
Dealer,Shops, Suppliers, Rentals, Lessor, etc.
⮚ Application Form of Mayor‘s Permit
⮚ Health Certificate (result of urinalysis, fecalysis and chest e-ray or on a case
tocases basis)
⮚ Accomplished Registration Form
⮚ Environmental Permit from MENRO

224
Figure 97 Sample Sanitary Permit
Environmental Compliance Certificate
It will be issued by the DENR after a positive review of the application.
Thecertificate will indicate that the proposed business will not cause a significantly
negativeimpact on the environment. The ECC contains specific measures and conditions
that mustbe met by the project proponent before and during the operation of the
project‘sabandonment phase to lessen identified potential environmental impacts.
Requirements:
⮚ Letter of request to DENR stating desire to receive ECC

225
⮚ Project Description, indicating raw materials to be used and process
ormanufacturing technology to be implemented.
⮚ Estimated project capacity, type and volume of products and discharges
⮚ Proof of possession of necessary capital
Figure 98 Environmental compliance certificate DENR sample

226
Fire Safety Certificate
Go to Bureau of Fire Protection to secure a fire permit. All business
establishments are required to have a fire extinguisher and the number of extinguishers
depends on the floor area of the establishment. The BFP needs to inspect your place
before they sign the papers. Some LGU does do not conduct inspection but requires
pictures of the establishment.
Figure 99 Fire Safety Certification

227
Bureau of Internal Revenue (BIR) Registration
Business registration with the Bureau of Internal Revenue (BIR) is one of the
things a business owner needs to do to make the business legal and avoid the risk of tax
evaders. To legalize the company, it must complete the entire Bureau of Internal Revenue
(BIR) registration process.
The table below shows the procedures and requirements required by Bureau of
Internal Revenue (BIR) when registering the business.
Table 79 BIR Registration Procedures
PROCEDURE REQUIREMENTS
BIR Form 1901 (Application Form),
BIRM Form 0650 (Payment Form), BIR
1. Prepare 3 copies of the BIR forms needed
Form 2000 (Documentary Stamp Tax on
for the business.
Lease)
2. Register the business name with the BIR

Mayor‘s Permit or Application for
Revenue District Office (RDO) having
Mayor‘s Permit, Contract of Lease, DTI
jurisdiction over the registered address of the
Certification
business establishment
3. After the payment has been made, go back
to your RDO. Get a queue number from the
BIR FORM 1901 (Application Form),
guard. Go to the registration section for the
Photocopy of Paid BIR Form 0605
receiving of your application. Wait for your
(Payment Form), Photocopy of Paid BIR
turn to be called and submit a photocopy of
Form 2000 (Documentary Stamp Tax on
BIRM form payments, special BIR payment
Lease), Contract of Lease or Land
form (all Accredited Banks of RDO have a
Title/Tax Declaration, Photocopy of
special payment form for BIR only) and
Mayor‘s Permit
other documentary requirements.
4. Schedule for release. Some of RDOs may

request you to attend a seminar about the
filing of the taxes before the actual release of
Certificate of Registration but some do not;
be prepared just in case. Also, don‘t forget to
ask for an ―Ask for Receipt‖ sign. Some
RDOs will automatically give it to you
228
together with the COR and some do not. So,

to be sure, just ask for it.
Social Security System (SSS) Registration
Under the Republic Act No 8282 – Social Security Law, SSS, also known as the
Social Security System, is a state policy for establishing, developing and promoting a
sound and viable tax-exempt social security system adapted to the needs of people. SSS
is like a government-mandated insurance program for all Philippine income-earners or
employees. All income earning members of SSS are required to contribute to the fund
monthly, the amount depends on their salary bracket. Members will benefit from
insurance benefits such as sickness, maternity, disability, retirement, death and funeral
and salary loans, in exchange for the aforementioned monthly contributions.

229
Figure 100 Employer Registration SSS Form R-1

230
Table 80 SSS Employer Registration Procedure
PROCEDURE REQUIREMENTS
1. Fill out the SSS Employer Registration Form in two
(2) copies and accomplish appropriate parts: · For
Employer Main Office - Parts I and III · For Employer
Branch Office - Parts II and III
Employment Report (SS Form
2. Submit this form to the nearest SSS office with R1A) · Specimen Signature
requirements needed. Card (SS Form L-501) · Sketch
of your business address.
3. The form shall be supported by applicable required
documents and signed by authorized signatories.
4. Pay the fee of P165.00 for Employer Registration
Plate at the SSS or at any SSS accredited bank and
submit validated Miscellaneous Payment Return (SS
Form R6) or SS Form R-6 and Special Bank Receipt
with this form.
5. Notify SSS of any changes in data and the status of
the employer's business operations to avoid being
billed for period/s when no contributions are due like
the following: · Temporary suspension, permanent ZEmployer Data Change
cessation or merger/consolidation of business Request (SS Form R-8)
operations; and · Changes in the employer's data such
as business name, address, ownership, legal
personality and other relevant information
6. Request for replacement of the Employer
Registration Plate, in case of loss or change of Application for Employer
business name and/or address that will result to change Registration Plate.
of SSS branch ownership.
7. Always use your 13-digit Employer Number in all
your transactions with the SSS.
PhilHealth Insurance Registration
PhilHealth is administered by the Philippine Health Insurance Corporation and
provides practical ways for employees to pay for adequate medical care in the
Philippines. Provides financial assistance for hospitalization inpatients and outpatients.
All employers are required to register with PhilHealth, the government health care
231
system, and their employees. An employer number shall be issued upon registration. The
monthly contribution, under the PhilHealth system, is divided equally between employer
and employee. It is automatically deducted and withheld from the employee's salary by
the employer, which is then transferred to PhilHealth.
Figure 101 PhilHealth Member Registration Form

232
Table 81 PhilHealth Insurance Registration Process
REQUIREMENTS
1. Obtain a form in two copies from any PhilHealth branch or in their website.
2. Read the instructions and fill out the form.
3. Go to any PhilHealth branch and get priority number and wait to be called 500
4. Submit the filled-out form together with the requirements needed for the registration
5. Wait until the registration is approved then obtain the other copy of the form bearing
the PhilHealth ID number.
Figure 102 Employee Data Record (ER1) Form

233
FDA Registration
Table 82 Food and Drug Administration Registration Process
PROCEDURE
For Initial Application
1. Accomplished Application Form with Declaration and Undertaking
2. Proof of Business Name Registration
3. Site Master File (for manufacturers of drugs, devices and cosmetics)
4. Risk Management Plan
5. Payment of the appropriate filing fee
For Renewal Application

● Accomplished Application Form with Declaration and Undertaking
● Payment of the appropriate filing fee

234
Figure 103 FDA Registration Form

235
6.2. Taxation Aspect
According to the ―benefits-received principle‖ the government collects taxes from the
subjects of taxation in order that it may be able to provide services to them. Citizens of
any country should therefore know and pay their taxes for this means giving an aid to the
government to finance adequately.
Table 83 Tax Obligation
TAX
% OF
CODE DOCUMENT COST FILLING
UNIT
SECTION
The fillong and payment
should be on or therefore
Lease and Hiring the 10th day after the end
agreement or of the month except
memorandum or those withheld for
contract for hire, use or December, shall be
194 rent of any land or 0.05% 72,000.00 remitted on or before
tenements or portions January 25 of the
thereof succeeding year.
236
CHAPTER VII
FINANCING AND FINANCIAL ASPECT
In this chapter, the discussion of financial aspect as a major aspect of
business establishment will be discussed in detail. This will be the final check for
financial feasibility of thebusiness.
7.1. Financing Aspect
Financing aspect includes the search for possible resources which could be used to
carry out the project's activities. It consists of approximating the cost element of the
proposed project, where resources could be completely utilized and efficiently
applied to make the business successful.
7.1.1. Initial
Capitalizat
ion
Fixed Assets
A fixed asset is a long-term tangible piece of property or equipment which the
company owns and uses to generate revenue in its operation.
These are properties that are purchased for long-term use and are unlikely to
easily turn into cash. Popular examples for this are the equipment and materials that
are bought at the very start of the business.

237
Table 84 Fixed Assets
FIXED ASSET COST

Children Salon Materials and
Equipment
Hood dryers ₱ 1,499.00
Heat lamps 2,349.00
Blow dryers 1,320.00
Hair straighteners 2,150.00
Hair curlers 1,490.00
Hair clippers 349.00
Shears and scissors 899.00
Rattail combs 499.00
Wide-Toothed combs 850.00
Round brushes 750.00
Vented brushes 649.00
Paddle brushes 699.00
Hair cutting capes 499.00
Salon towels 399.00
Hand mirrors 650.00
Hair water spray bottles 250.00
Hair clips 99.00
Aprons 590.00
Salon latex gloves 149.00
Carts and trolleys 3,499.00
Salon Retail stand 4,550.00
₱ 24,188.00
Emergency Equipment
Fire extinguisher 4,590.00
Fire blankets 9,500.00
Smoke detectors 23,450.00
₱ 37,540.00
Cleaning Tools and Equipment
Washing machine 4,700.00
Dustpan 420.00
Brooms 300.00
₱ 5,420.00
Cleaning Supplies
Dishwashing soap 850.00
Bathroom cleaner 1,050.00
238
Bathroom freshener 1,280.00

Tissue paper 500.00
Hand sanitizer 790.00
Rags 230.00
₱ 4,700.00
Office Equipment
Reception desk 15,500.00
Reception chairs 5,050.00
₱ 20,550.00
Office Supplies
Ballpen 750.00
Pencil 450.00
Marker pen 1,150.00
Bond papers 1,100.00
Folder 1,200.00
Paper clip 550.00
Scotch tape 550.00
Staples 500.00
Receipts 490.00
Calculator 1,460.00
₱ 8,200.00
Office Devices
Laptop/Personal Computer 30,000.00
Phone 7,800.00
₱ 37,800.00
Furniture
Sofa 14,999.00
Salon children chairs 12,999.00
Chairs/Stools 4,700.00
Big Mirrors 2,500.00
₱ 35,198.00
Other Supplies and Stuffs
Toys 20,450.00
Air conditioner 24,189.00
CCTV 12,500.00
₱ 57,139.00
Total Fixed Asset ₱ 230,735.00
239
7.1.2. Pre-Operating Expense
This are expenses which are incurred before start of the commercial
operation of the company. As the pre-operating expenses involved in this business
are summarized now:
Table 85 Pre-Operating Expense
Activity Description Cost

Pre-operating Cost
Project Planning 5,000
Capital Sourcing 4,000
Business Location Selection (Leasing
2,630
Requirements)
Marketing Expense 15,000
Hiring and Training Employees 20,000
Launching 20,000
Registration 30,000
Total 96,630
Construction and Installation
Materials Cost 40,329
Labor Cost 50,000
Total 90,329
Working Capital Requirement
Cost of Goods Sold 1,479,185
Operating Expenses 200,714
Total 1,679,898
Fixed Assets 230,735
Total Project Cost 2,097,592
Say 2,100,000
240
7.1.3. Operating Expense
An operating cost is a daily expense incurred in the normal course of
operation but not directly related to service. Operating costs include items such as
advertisement, rental, maintenance, salaries, depreciation, and interest expense.
Table 86 Operating Expense
OPERATING
2023 2024 2025 2026 2027
EXPENSE
Advertisement
18,400 18,584 18,770 18,958 19,147
Expense
Rental
60,000 60,000 60,000 60,000 60,000
Expenses
Maintenance
24,000 24,240 24,482 24,727 24,974
Expense
Salaries
576,840 582,608 588,434 594,319 600,262
Expense
Depreciation
26,985 26,985 26,985 26,985 26,985
Expense
Interest
100,800 84,933 67,162 47,259 24,967
Expense
Total
Operating 905,678 799,374 787,858 774,273 758,362
Expense
7.1.4. Sources of Initial Capitalization
Working Capital is always present in every business. It is the measure of
cash or liquid assets essential for its day-to-day operation.
In order to suffice the needed initial capital, four partners will invest
315,000.00 pesos each. Moreover, A 5-year loan with principal amount of ₱
840,000.00 will be borrowed from Bank of the Philippine Island (BPI) to complete
the requiredcapital.
241
Table 87 Sources of Initial Capital
SOURCES OF INITIAL CAPITALIZATION

DESCRIPTION PERCENTAGE COST FIXED AMOUNT
LUGATIMAN 15% 315,000.00 315,000.00
SUAYBAGUIO 15% 315,000.00 315,000.00
ANTECRISTO 15% 315,000.00 315,000.00
TAGANILE 15% 315,000.00 315,000.00
Bank Loan 40% 840,000.00 840,000.00
Total 900,000.00
Table 88 Amortization Schedule of Business Loan
YEA BEGINNING PAYME INTERE PRINCIP ENDING

R BALANCE NT ST AL BALANCE
233,024.1 100,800.0 132,224.1
1 840,000.00 707,775.83
7 0 7
233,024.1 148,091.0
2 707,775.83 84,933.10 559,684.75
7 8
233,024.1 165,862.0
3 559,684.75 67,162.17 393,822.74
7 0
233,024.1 185,765.4
4 393,822.74 47,258.73 208,057.30
7 5
233,024.1 208,057.3
5 208,057.30 24,966.88 -
7 0
7.2. Financial Aspect
The financial aspect projects how much start-up financing, funding sources, returns
on investment and other financial factors are expected in a feasibility study. It
addresses how much cash is required, where it originates and how it will be used. It
is a measurement of its financial consequences. It is seen as the prime factor in
determining its viability and competitiveness.

242
7.2.1. Projected Income Statement
An income statement is a description of a management's success as expressed
in the productivity (or lack thereof) of a company within a given timeframe. It
illustrates past gains and losses that led to the present gain or loss, showing what can
be done to adjust the outcome.
7.2.2. Projected Balance Sheets
A balance sheet is a consolidated document representing an entity's financial
status on a given date (usually the last day of an accounting period). The balance
sheet data is based on a simple accounting equation (assets = liabilities + owners '
equity), which is listed under subheadings such as current assets, fixed assets,
current liabilities, long-term liabilities.

Table 89 Projected Income Statement
LITTLE LAND
PROJECTED INCOME STATEMENT
AS OF DECEMBER 31, 2023-2027
2023 2024 2025 2026 2027
Revenue
Sales 8,404,703 8,614,821 8,830,191 9,050,946 9,277,220
Cost of Goods Sold 5,916,738 6,064,656 6,216,273 6,371,680 6,530,972
Gross Profit 2,487,965 2,550,164 2,613,918 2,679,266 2,746,248
Gross Rate 29.60% 29.60% 29.60% 29.60% 29.60%
Pre-operating
96,630 - - - -
expense
Operating Expense
Advertisement
18,400 18,584 18,770 18,958 19,147
Expense
Rental Expenses 60,000 60,000 60,000 60,000 60,000
Maintenance
24,000 24,240 24,482 24,727 24,974
Expense
Salaries Expense 576,840 582,608 588,434 594,319 600,262
Depreciation
26,985 26,985 26,985 26,985 26,985
Expense
Interest Expense 100,800 84,933 67,162 47,259 24,967
Total Operating
903,655 797,350 785,833 772,247 756,335
Expense
243
Expense Before
1,584,310.63 1,752,814.26 1,828,084.97 1,907,019.51 1,989,912.98
Income Taxes
Less: Income Tax
475,293.19 525,844.28 548,425.49 572,105.85 596,973.89
30%
Net Income/Loss 1,109,017.44 1,226,969.98 1,279,659.48 1,334,913.65 1,392,939.09
Return on Sales 13.20% 14% 14% 15% 15%
244
Table 90 Projected Balance Sheet
LITTLE LAND
PROJECTED BALANCE SHEET
FOR THE YEAR ENDED, DECEMBER 31
Pre-operating 2023 2024 2025 2026 2027
Asset
Cash 1,622,306 3,198,007 4,354,422 5,517,785 6,717,598 7,954,333
Prepaid Rent 60,000 60,000 60,000 60,000 60,000 60,000
Preoperating Expense 96,630 - - - - -
Total Current Asset 1,778,936 3,258,007 4,414,422 5,577,785 6,777,598 8,014,333
Fixed Asset 321,064 321,064 321,064 321,064 321,064 321,064
Less: Accumulated Depreciation - 26,985 - 53,969 - 80,954 - 107,938 - 134,923
Total Non-Current Asset 321,064 294,079 267,095 240,110 213,126 186,141
Total Asset 2,100,000 3,552,086 4,681,516 5,817,895 6,990,724 8,200,474
Liabilities
Current Liabilities
Income Tax Payable 475,293 525,844 548,425 572,106 596,974
Total Current Liabilities - 475,293 525,844 548,425 572,106 596,974
Loan Payable 840,000 707,776 559,685 393,823 208,057 -

Total Long Term Liabilities 840,000 707,776 559,685 393,823 208,057 -
Partner‘s Equity 1,260,000 2,369,017 3,595,987 4,875,647 6,210,561 7,603,500

Total Liabilities and Partner‘s Equity 2,100,000 3,552,086 4,681,516 5,817,895 6,990,724 8,200,474
245
7.2.3. Projected Statement of Cash Flows
A cash flow statement is a financial statement that summarizes a company's cash transactions over a specific accounting period
and categorizes them as cash flows from operating, acquisition, and financing operations. It shows how cash moved during the time
period by indicating whether a specific line item is a cash-in-flow or cash-outflow.
Table 91 Projected Cash Flows
LITTLE LAND
PROJECTED CASH FLOWS
Pre-Operating 2023 2024 2025 2026 2027
Cash Flow for
Operating
Activities
Net Income before
1,109,017 1,226,970 1,279,659 1,334,914 1,392,939
tax
Depreciation
26,985 26,985 26,985 26,985 26,985
Expense
Income Tax Paid 475,293 50,551 22,581 23,680 24,868
Pre-Operating
-96,630 96,630
Expense
Prepaid Rent -60,000
Net Cash Provided
by Operating -156,630 1,707,925 1,304,506 1,329,225 1,385,579 1,444,792
Activities
Cash Flow for
Investing Activities
246
Fixed Asset
-321,064
Acquisition
Proceeds from Sales
-
of Fixed Assets
Net Cash Provided
by Investing -321,064 0 0 0 0 0
Activities
Cash Flow for
Financing Activities
Cash Invested 1,260,000
Cash Borrowed from
840,000
the Bank
Payment of Principal -132,224 -148,091 -165,862 -185,765 -208,057
Net Cash Provided
by Financing 2,100,000 -132,224 -148,091 -165,862 -185,765 -208,057
Activities
Net Increase in
1,622,306 1,575,701 1,156,415 1,163,363 1,199,813 1,236,734
Cash
Add: Cash at the
Beginning of the 0 1,622,306 3,198,007 4,354,422 5,517,785 6,717,598
Year
Cash at the End of
1,622,306 3,198,007 4,354,422 5,517,785 6,717,598 7,954,333
the Year
247
248
7.2.4 Financial Performance
Financial analysis is the method by which businesses, ventures, budgets and other
financial institutions are assessed to assess their suitability for investment. Financial
analytics are usually used to determine whether an enterprise is sufficiently stable,
solvent, liquid, or profitable to invest in. Comparing financial ratios is one way of doing
financial research. Financial ratios are used to measure the relationship between two or
more components of the financial statements and have greater meaning when the results
are compared to industry standards for businesses of similar size and activity.
Return on Net Operating Profit
Profits are divided before interest and taxes by total tangible assets. As a result,
the ratio shows the capital contributed by the owner and the relationship of its share of
operations before taxes for the period.
= 𝐴 𝑥
Table 92 Net Profit Margin
NET PROFIT MARGIN

Year 2023 2024 2025 2026 2027
Net Income
1,109,017 1,226,970 1,279,659 1,334,914 1,392,939
Sales
8,404,703 8,614,821 8,830,191 9,050,946 9,277,220
Net Profit
13.20% 14.24% 14.49% 14.75% 15.01%
Margin
The tables above show the positive percentage of the net profit margin. The
company‘s ability to control its costs in terms of purchasing goods at prices significantly
higher than it cost to produce them.

249
Return on Net Operating Profit
The income is measured before interest and taxes, by the expense of tangible
assets. Consequently, the ratio shows the capital invested by the owner and the
relationship between his shares of the pre-tax operations for the time.
𝐴 𝑅 = es
𝐴
Table 93 Asset Return
RETURN ON ASSETS
Year 2023 2024 2025 2026 2027
Net Income
1,109,017 1,226,970 1,279,659 1,334,914 1,392,939
Tangible Assets
2,100,000 3,552,086 4,681,516 5,817,895 6,990,724
Return of Net
52.81% 34.54% 27.33% 22.94% 19.93%
Operating Profit
Rate of Return of Partner’s Equity
The income is measured before interest and taxes, by the expense of tangible
assets. Consequently, the ratio shows the capital invested by the owner and the
relationship between his shares of the pre-tax operations for the time.
Rate of Return of Partner‘s Equity Formula
𝑅 h 𝑞 𝑦= 𝑥
𝐴𝑣 𝐻
𝑞 𝑦
Table 94 Return on Partner’s Equity
RETURN ON PARTNER’S EQUITY

Year 2023 2024 2025 2026 2027
Net Income 1,109,017 1,226,970 1,279,659 1,334,914 1,392,939
Total Owner's Equity 2,369,017 3,595,987 4,875,647 6,210,561 7,603,500
Return of Net Operating
46.81% 34.12% 26.25% 21.49% 18.32%
Profit
Table 95 Projected Partner’s Equity
PROJECTED STATEMENT OF PARTNER’S EQUITY

2023 Owner 1 Owner 2 Owner 3 Owner 4 Total

Initial Investment 315,000 315,000 315,000 315,000 1,260,000.00
Add: Additional
Investment
Partner‘s Share of 2023
net income 277,254.36 277,254.36 277,254.36 277,254.36 1,109,017.44
Less: Withdrawal
Owner’s Equity End 592,254.36 592,254.36 592,254.36 592,254.36 2,369,017.44
2024
Partner‘s Beginning
Equity 592,254.36 592,254.36 592,254.36 592,254.36 2,369,017.44
Add: Additional
Investment
net income 306,742.50 306,742.50 306,742.50 306,742.50 1,226,969.98
Less: Withdrawal
Owner’s Equity End 898,996.86 898,996.86 898,996.86 898,996.86 3,595,987.42
2025
Equity 898,996.86 898,996.86 898,996.86 898,996.86 3,595,987.42
Add: Additional
Investment
net income 319,914.87 319,914.87 319,914.87 319,914.87 1,279,659.48
Less: Withdrawal
Owner’s Equity End 1,218,911.73 1,218,911.73 1,218,911.73 1,218,911.73 4,875,646.90
250
2026
Equity 1,218,911.73 1,218,911.73 1,218,911.73 1,218,911.73 4,875,646.90
Add: Additional
Investment
net income 333,728.41 333,728.41 333,728.41 333,728.41 1,334,913.65
Less: Withdrawal
2027
Equity 1,552,640.14 1,552,640.14 1,552,640.14 1,552,640.14 6,210,560.56
Add: Additional
Investment
net income 348,234.77 348,234.77 348,234.77 348,234.77 1,392,939.09
Less: Withdrawal
251
252
Payback Period
This refers to the time required to recover the cost of an investment. The shorter
the time the lesser the risk of the project is. For Little Land the payback period of the
company is 5 years.
𝑦 = 𝑣
Table 96 Payback Period
Cost of Investment (Initial

2,100,000.00 -
Capital)
Net Cash Inflow
Year 0 (2,100,000.00) (2,100,000.00)
Year 1 1,707,925.15 (392,074.85)
Year 2 1,304,505.59 912,430.75
Year 3 1,329,225.22 2,241,655.96
Year 4 1,385,578.54 3,627,234.50
Year 5 1,444,791.65 5,072,026.15
Payback Period ( Year) 1.00 0.30
Table 97 Sales Return and Fixed Return Asset Turnover
RETURN OF NET OPERATING PROFIT

year 2023 2024 2025 2026 2027
net income before
taxes 1,584,311 1,752,814 1,828,085 1,907,020 1,989,913
tangible asset
2,100,000 3,552,086 4,681,516 5,817,895 6,990,724
Return of Net
75.44% 49.35% 39.05% 32.78% 28.47%
Operating Profit
ASSET TURNOVER
year 2023 2024 2025 2026 2027
tangible asset
2,100,000 3,552,086 4,681,516 5,817,895 6,990,724
sales
8,404,703 8,614,821 8,830,191 9,050,946 9,277,220
Return of Net
24.99% 41.23% 53.02% 64.28% 75.35%
Operating Profit
253
CHAPTER VIII
SOCIO-ECONOMIC DESIRERABILITY ASPECT
This section of this analysis aims to address the socio-economic implications of,
of Little Land Children Salon primarily about how business affects society.
8.1. Socio-Economic and Environmental Goals
Getting a company would provide economic and social assistance to the economy of
the country. In setting up the business of Little Land Children Salon in Mactan Town
Center Basak Lapu-Lapu City, the idea was born of operating a unique services business.
This can offer to peoples who are less fortune or have an experience will can be part
to qualify of the company, it really provides great helps to the people to have an
opportunity to enter of this said business.
This business will favor the government in getting a corporation to pay taxes, as it is
expected by law that the taxes raised are a tool to help develop the nation and can be used
to boost the economy and the public sector.
8.2. Impact Assessment
Demographic Impact
Customers are the main channels of why businesses exist; businesses aim for profit
through the patronage of the customer. As customers spend their resources on the service
of the company, their needs and desires are also met, prompting an equal value exchange
254
between the two entities. The potential market of the business Little Land are those
children are both male and female that passes or drives around Lapu-lapu area.
Selling Market Impact
Competitors are always present in every business sector. The existence of one or
more competitors may lower the prices of the services offered as the companies seek to
acquire a greater market share. All the salon and the like in Lapu-lapu are regarded as the
direct competitors of Little Land. Hence, a good marketing strategy is required to attract
more customers. The business advertises its services offered by distributing printed
materials or flyers with unique and impactful message to connect the brand of the
business with the consumers. The company will also make the use of social media as one
of the public relations platforms.
Income and Employment Income
The Little Land company is a job creator, as it requires employees to run. People
looking for employment have been given an opportunity to be hired. Unemployment
problems in the community will therefore be minimized.
Tax Contribution
Government can make money from the taxes that come from the dues of the
company. These taxes are then used for funding and executing projects or programs.
Additionally, because the business offers the worker a job, the government can collect
taxes from the workers because they already have salaries

255
8.3. Cost Benefit Analysis
Cost-benefit analysis is relevant in order to know if the study is feasible. This part of
the study will have the final implication and will serve as the basis if the planned business
is really feasible. Cost and benefit analysis is one way of quantifying the socioeconomic
profitability of a given project. In this case, the benefit is equal to the annual gross profit
while the total operating expenses are the costs. The metric used in this study is the cost-
benefit ratio, or also known as the index of profitability. Cost benefit analysis refers to
the the formula:
Cost Benefit Ratio = Benefit of Profit / Cost of Initial Investment
Cost Benefit Ratio = 6,336,412.00 / 2,100,000.00
Cost Benefit Ratio = 3.02
A cost benefit ratio of 3.02 means that the benefits of a project or investment are
3.02 times greater than its costs. In other words, for every peso invested in the project,
Php 3.02 in benefits are expected to be generated. This ratio is often used as a measure of
the economic viability of a project or investment, as it indicates whether the benefits of
the project outweigh its costs. This indicates that the value created by Little Land
Children Salon outweighs the expense.

256
CHAPTER IX
SUMMARY, FINDINGS, AND RECOMMENDATIONS
Summary
Little Land, a children salon, is fully equipped with the latest and brand-new
styling tools and equipment and an expert team that undergone trainings on the correct
and proper way of cutting every hair style, good at handling children, and helps assist
customers the best hairstyle and services to offer. Little Land Children Salon provides a
service that satisfy the customer‘s needs and specializes in trendy hairstyles. This service
will cater customers within the area of Lapu-Lapu City which helps saves customer‘s
time and money. This study attempts to identify the path of the business market
opportunity and to provide database and information to entrepreneurs who are interested
in this business that will help them make a decision about investing in the launch of
customer-based children salon service not only financially but also in other management
aspects.
Findings
This section presents the different necessarily aspects of good feasibility
study, hence, proving how feasible the project is.
Marketing Aspect
The target market of the business is the middle class parents. Based on the projected
population demand with a growth rate of 9.29% for the next five academic years, the
257
capacity of services to be performed. There are a total of 15 market competitors, 2 are
direct and 13 indirect competitors but the edge of the Little Land among its all
competitors is the quality of the service offered. The service offered a salon service
convenient for both child and parents depends on the wants of the customer.
Technical Aspect
Based on the final output considering the cycle time (the time from the performing
the service until it is finished and ready to give back to customers) of the services, has an
efficiency of 92.84%. It is obtained through the available time per day, percentage
demand of each product/service mix and the number of workers involved in the process.
Financial Aspect
 Given the nature of the business and its required equipment, the business needs an
initial capital Php 2,100,000.00 in order to finance its pre-operating activities,
acquisition of property and equipment and purchase inventories needed in
performing the service.
 A healthy proportion for the business‘ initial capital requirements should be no
more than 40% funded from liabilities. In order to achieve a healthy ratio of debt
to-equity, the 4 proponents of the business agrees to invest Php 315,000.00 for a
total of Php 1,260,000.00 and agrees to apply for a loan amount of Php
840,000.00.
 Pre-operating activities refer to the tasks and processes that are necessary to
prepare for the start of a new business. The capital needed for other activities
done prior to the commencement of the business includes the conduct of a project
258
planning (5,000.00), capital sourcing (4,000.00), leasing requirements (2,630.00),
promotion/marketing (15,000.00), hiring and training of employees (20,000.00),
launching (20,000.00), registration (30,000.00) amounting to a total of Php
96,360.00.
Management Aspect
The form of ownership or business type is a partnership. The company‘s total
manpower is 24 where 10 of them is the direct labor and 10 is the indirect labor.
Other important legal forms that must be complied in order to start operating the business
includes mayors permit, barangay clearance, community tax, sanitary permit, fire safety
permit, health permit, certificate of occupancy, environmental clearance, the BIR, SSS,
PhilHealth and the Pag IBIG Registration.
Recommendations
Marketing Aspect
The business's target market is middle-class parents. The capacity of services to
be performed is based on projected population demand with a growth rate of 9.29% over
the next five academic years. There are a total of 15 market competitors, 2 direct and 13
indirect, but the Little Land's competitive advantage is the quality of service.
Technical Aspect
The efficiency of the services is 92.84% based on the final output considering the
cycle time (the time from performing the service until it is finished and ready to give
back to customers). It is determined by the amount of time available per day, the
259
percentage of demand for each product/service mix, and the number of workers involved
in the process.
Financial Aspect
The initial capitalization comes from the owners divided into two. Based on
financial performance in accordance to applying financial ratios, the business is said to be
profitable and marketable in the specified market location.
Management Aspect
The form of ownership or business type is a partnership. The company‘s total
manpower is 24 where 10 of them is the direct labor and 10 is the indirect labor.
Other important legal forms that must be complied in order to start operating the business
includes mayors permit, barangay clearance, community tax, sanitary permit, fire safety
permit, health permit, certificate of occupancy, environmental clearance, the BIR, SSS,
PhilHealth and the Pag IBIG Registration.
Conclusion
This research has explored the processes involved in the execution of a feasibility
study for a new startup that belongs to the personal services sector. The assignment has
been a past part of the feasibility study subject but at the same time a personal
investigation into the possibility of realizing this startup. After in-depth research,
analysis, and forecast are that the business is feasible but should proceed only if the
recommendations given will be followed with precision.

260
BIBLIOGRAPHY
Caruana, Money, A. H., & & Berthon, P. R. (2000). Service quality and satisfaction-the
moderating role of value. European Journal of Marketing, 333.
Expert, T. (2014). Marketing Blog. The next internet scoop.
Regan, W. J. (2006, JULY). The Service Revolution. JOURNAL OF MARKETING, 57.
Zeithaml, V. A., & & Bitner, M. J. (2000). Service Marketing, Integrating Customer
Focus Across The Firm (2nd ed.).
Harrigan, K. R. (1980a). Strategies for Declining Industries. Journal of Business
Strategy,Vol. 1, Issue 2, 20 – 34.
Heiskanen, E. (1996). "Conditions for Product Life Extension". Proceedings of the 3rd
Conference of the Nordic Business Environmental Management Network. Aarhus.
Denmark, (pp. 395 - 408). Aarhus,Denmark.
Hove, P., & Tarisai, C. (2013). J Economics, 57-67.
Hove, P., & Tarisai, C. (2013). Internal Factors Affecting the Successful Growth and
Survival of Small and Micro Agri-business Firms in Alice Communal Area. Journal
of Economics, 57-67.
JONES, D. N. (2019). face extinction - and are busier than ever.
Kamunge, & Adisa. (2014). European Journal of Business and Management.
Kamunge, M., Dr. Njeru, A., & Tirimba, O. (2014). International Journal of Scientific
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King, A. W. (2006). Reducing waste: repair, recondition, remanufacture or recycle?
Sustainable Dev. 14. 257-267.
Lin, C., & Wong, S. (2013). Government intervention and firm investment: Evidence
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653.
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262
APPENDICES
SURVEY QUESTIONNAIRE
This questionnaire pertains to a study conducted by BS-Industrial Engineering
students of CTU- Main Campus. The purpose of this study is to better understand the
perception of consumers for the new innovated service. This questionnaire will take only
5-10 minutes and all the responses will be anonymous.
Name (optional): Age:__________
Address: Gender: Male Female
Status: Single Married
Number of Child/Children:__________
Employment Status: Student Employed Unemployed
Monthly Income: No income Less than 10, 000 10,000 – 20,000
21,000 – 30,000 31,000 – 40,000 41,000 - above
1. Do you go to salon? Yes No
2. Have you tried bringing a child into a salon? Yes No
3. Are you interested in Little land children salon? Yes No
4. What characteristics would attract you to get our new service?
Quality Smell Worker Price Others:_________

263
5. If you were tour new service, what time would you prefer?
Morning Afternoon
6. What kind salon do you prefer?
Convenient and Fast Well detailed and vibrant Others:_________
7. Are you willing to refer to our new business Little Land Children Salon?
Yes No
8. If that‘s so, would you like to try our new service? Yes No
9. What type of promotion would you prefer with a new service?
Word of Mouth Internet Referral Social Marketing
10. What is the age of your kid/s?
0-3 yrs old (boys) 4-8 yrs old (boys) 9-12 yrs old (boys)
0-3 yrs old (girls) 4-8 yrs old (girls) 9-12 yrs old (girls)
11. How often do you visit a salon with your kid/s?
ONCE A ONCE A EVERY 2 ONCE A

SEMIANNUAL
WEEK MONTH MONTHS YEAR
Haircut
Hairstyle
Other
Style
264
12. About how much will pay for each service?
50-100 PHP 100-200 PHP 200-500 PHP 500-1000 PHP
Haircut
Hairstyle
Other Style
265
CURRICULUM VITAE
John Lloyd B. Antecristo
PERSONAL BACKGROUND
Address : Cabantan Street, Bo. Luz, Cebu City

Date of Birth : January 23, 2001
Place of Birth : Cebu City, Cebu
Religion : Roman Catholic
Gender : Male
Civil Status : Single
Citizenship : Filipino
Mother : Marilyn B. Antecristo
Father : Dionisio C. Antecristo Jr.
EDUCATIONAL BACKGROUND
Cebu Technological University-MC

Tertiary : R. Palam St., Cebu City
(2019-present)
Tubod National High School

Secondary SHS : Tubod, Badian, Cebu
(2018-2019)
Mabolo National High School

Secondary JHS : Mabolo, Cebu City
(2016-2017)
Mabolo Elementary School

Elementary : Mabolo, Cebu City, Cebu
(2012-2013)
266
Britney Blaire C . Lugatiman

Kimberly kimba Cansojong talisay city cebu
britneyblaire.lugatiman@ctu.edu.ph
+639682849303
l. Personal Information
Name : Britney Blaire Carasaquit Lugatiman
Home Address : Kimberly kimba Cansojong talisay city cebu
Birthday : September 25, 2001
Place of Birth : Cebu city
Age : 20
Gender : Female
Religion : Roman Catholic
ll. Educational Background
Senior Level : Southwestern university PHINMA
Address : Urgello, Sambag 1, Cebu city
Year Graduated : 2018 – 2019
Junior Level : Cansojong Technical Vocational Highschool
Address : Cansojong, talisay city cebu
Year Graduated : 2016 – 2017
Elementary : River of Praise Christian School
Address : Rabaya street, Tabunok, Talisay City Cebu
Year Graduated : 2012-2013

267

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A FEASIBILITY STUDY OF LITTLE LAND CHILDREN SALON

A Feasibility Study in IE PC 4113 Project Feasibility

Presented to the Faculty of the Industrial Engineering Department

Cebu Technological University-Main Campus:

M.J. Cuenco Ave, Cor R. Palma Street, Cebu City, Philippines

In Partial Fulfillment of the Requirement for the Degree of

BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

Antecristo, John Lloyd B.

Lugatiman, Britney Blaire C.

Taganile, Jay Annie O.

This THESIS entitled “A FEASIBILITY STUDY OF LITTLE LAND CHILDREN

THESIS ADVISORY COMMITTEE

DYANNE BRENDALYN M. CAVERO, MEngIE

ENGR. ELISA MAGNASE ENGR. TERESITA B. CAPIN

APPROVED by the Committee on Oral Examination with a grade of: __________

THE PANEL OF EXAMINERS

ENGR. RAUL GUINITARAN

ENGR. DYONNE BERNADINE MIRASOL ENGR. ELISA MAGNASE

ACCEPTED AND APPROVED in partial fulfillment of the requirements for the

Date of Oral Examination: March 12, 2023

RONALD M. GALINDO, PME, DPA, Ph.D.

―TO GOD BE THE GLORY‖

following individuals for their contribution in the course of this study:

for all your amazing effort.

motivations, love and care.

strength, determination, and providing us good health in our daily life.

We humbly dedicate these upshots of bloods and sweats to:

This thesis is all for you!

APPROVAL SHEET .......................................................................................................... ii

ACKNOWLEDGEMENT ................................................................................................. iii

TABLE OF CONTENTS .....................................................................................................v

LIST OF TABLES ........................................................................................................... xiv

LIST OF FIGURES ......................................................................................................... xix

CHAPTER I. THE PROBLEM AND ITS SCOPE .............................................................1

1.1 Introduction ................................................................................................................1

1.1.1 Rationale of the Study.....................................................................................1

1.1.2 Theoretical Background ..................................................................................4

1.1.3 Flow of Research Process ...............................................................................6

1.2 The Problem ...............................................................................................................7

1.2.1 Statement of the Problem ................................................................................7

1.2.2 Statement of Assumptions ..............................................................................8

1.2.3 Significance of the Study ................................................................................9

1.3 Research Methodology.............................................................................................10

1.3.1 Research Environment ..................................................................................11

1.3.2 Research Respondents ..................................................................................12

1.3.3 Research Instruments ....................................................................................13

1.3.4 Research Procedures .....................................................................................14

1.4 Definition of Terms ..................................................................................................15

CHAPTER II. COMPANY PROFILE AND ITS MICROENVIRONMENT ..................16

2.1 Company Logo and Location ...................................................................................16

2.2 Vision, Mission, Goals, Objectives and Values ........................................................17

2.3 Critical Success Factors and Strategic Approach .....................................................19

2.4 Business Model .........................................................................................................20

2.5 Microenvironment of the Company ..........................................................................24

2.6 Five Forces Model ....................................................................................................26

2.7 Strategy Statement ....................................................................................................29

2.8 SCOT Analysis (Strength, Challenge, Opportunities and Threats) ..........................30

2.9 Roadmap ...................................................................................................................33

2.10 Action Plan..............................................................................................................34

CHAPTER III. MARKETING ASPECT ..........................................................................36

3.1 Service Concepts ......................................................................................................36

3.1.1 Name and Uses of Service ............................................................................36