COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

OPERATIONS MANAGEMENT DEPARTMENT 1

CHAPTER I

THE PROBLEM AND ITS BACKGROUND

INTRODUCTION

Small retail businesses face numerous obstacles and issues in

today’s world. Small businesses are finding it more difficult than ever to
keep up with the current trends and keep up with online shops. Given
these ever-changing circumstances, it’s no surprise that half of all retail
firms fail within the first two years, according to most studies. Too many
retail stores have their minds in the wrong place, worrying too much
about personal successes with the firm rather than focused on the
success and growth of their business. They begin with a strong work
ethic, but as they achieve minor victories, their desire lessens, and they
start to coast.

The field of retail shop operations encompasses all of the tasks

that keep a store running well on a daily basis. Everything at the best-run
stores is meticulously thought, planned, and executed. Store design,
display placement, customer service, money and credit processing,
shoplifting prevention, premises upkeep, employee management,
inventory optimization, and dealing with the full supply chain that leads to
having products in the store are just a few of the components of
operations.

By using this study that we conduct, small retail stores can be

assured that these factors in running small business would be
implemented at its high level of use. This study would show how small
business retail store can benefit by using this research in order for them
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to achieve their desired goals and success, also to make their

businesses continue until they can be called firm.

Theoretical Framework

This theoretical framework was created by reviewing various

theories to implement the decisions passed down by whoever is
formulating business strategy. Although implementing business strategy
top-down is one important role of operations strategy, it is only one of
four elements that must be present if any operations strategy is to be
effective. These elements are illustrated in the figure below.

Figure 1
The four elements of Operations Strategy
(Slack, 2017)

Top-Down: Operations must directly reflect the business’ overall

strategy- Operations is one of many functions that must be in sync with
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corporate strategy and pull in the same direction. It will not be an easy
task to create an operations strategy from a business strategy. All the
uncertainties and conflicts that are buried within most business
strategies will be uncovered and must be resolved during the translation
from business to operations strategy. Broad brushstrokes are used to
depict business strategies. They can lead the company in the right
direction, but they can't spell out every detail; that's where functional
strategies come in. The general thrust of business strategy should be
translated into what it means for the operation's resources and
procedures through operations strategy. Is there an obvious link
between the two?

Outside-In: Operations must provide a position for the business in

its markets- Operations is the market's supplier. It should assist in
establishing and maintaining its targeted market position by providing
service, innovation, and cost levels that outperform, or at the very least
keep up with, competitors. 'How well do our operations help the business
compete in its markets?' is the crucial question to ask. 'The problem is
that the concepts, language, and (to a degree) philosophy used to assist
marketers comprehend markets aren't always beneficial in guiding
operations. As a result, market demand descriptions frequently require
'translation' before they can be beneficial to operations. The relationship
between markets and the operations that support them isn't just about
markets telling operations how to act. Customers will, at the very least,
behave.

Bottom-Up: Operations must get strategic advantage by learning

from daily experience- Senior management does not make all choices
with long-term strategic implications. Important ideas might come from
seemingly innocuous tasks carried out within operations. A company
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might proceed in a specific strategic direction because their ongoing

operational experience of servicing consumers convinces them that it is
the right thing to do, and then a general consensus forms, frequently
from the operational level of the company. Allowing strategic ideas to
arise from a company's operational level isn't about abdicating
responsibility; it's about accepting that brilliant ideas can come from
individuals on the front lines. It would be a breach of duty if one did not
make every effort to support good ideas from everyday life. Every action,
choice, and transaction is a step in the right direction.

Inside-Out: Operations must develop the strategic capabilities of its

resources and processes- What can your operation accomplish that
your competitors can't?' is the important question here. 'In other words,
how might one's operations contribute to the company's strengths in a
unique way?' For far too many businesses, the answer is no. Even if a
company's operation lacks any distinctive qualities, it should strive to
acquire some sort of benefit from its resources and processes. As a
result, two additional concerns arise: what resources and methods
should be contributing to the development of capabilities? Also, how do
the decisions made inside the operation contribute to the development
and maintenance of these capabilities? Try using the VRIO framework's
four queries as a starting point.
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Conceptual Framework

Research Paradigm

INPUT PROCESS

1. What are the profile of the 1. Data Gathering

respondent I in terms of: through

1.1 Nature of business; Questionnaires.

1.2 Form of business; 2. Presentation of

1.3 Number of years in Data

operation; 3. Interpretation

1.4 Number of employees; and and Statistical

OUTPUT
1.5 Average monthly net profit? Analysis of Data
Implementing
2. How does small retail business can
Operational Strategies
be affected by operational strategies
and small retail store? in Small Retail Store

2.1 Top down;

2.2 Outside in; Figure 1. Research Paradigm

2.3 Bottom-up; and

As shown in figure 1. The Input contains the profile of the
2.4 Inside out
respondents in terms of Nature of Business, Form of Business, Number

of years in Operation, Number of Employee and Average net monthly

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Profit. Next is how does the small business retail store would be affected

by the Operational Strategies in terms of Top down, Outside In, Bottom

Up and Inside Out. The expected output of this research is Implementing

Operational Strategies in Small Retail Store.

To achieve this output, the process should be Data gathering

through questionnaires followed by interpretation and statistical analysis.

Statement of the Problem

This study purports to determine the sustainable strategies of

selected family-owned business. Specifically, it seeks to answer the
following questions:

1. What are the profile of the respondents in terms of:

1.1 Nature of business;

1.2 Form of business;

1.3 Number of years in operation;

1.4 Number of employees; and

1.5 Average monthly net profit?

2. How does small retail business can be affected by operational

strategies and small retail store?

2.1 Top down;

2.2 Outside in;

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2.3 Bottom-up; and

2.4 Inside out

3. Is there a significant relationship between operational strategies and

small retail store?

4. Is there a significant difference on the assessment towards

operational strategies when respondents are grouped according to
profile?

5. What operational strategies may be proposed based on the findings?

Hypothesis

The researchers conducted this study to know the Benefits of having

opersational strategies and effect in managing a small retail store at
Pasig City.

Thus, this study tested the following hypothesis:

Ho1: There is no significant relationship between operational strategies

and small retail store.

Ho2: There is no significant difference on the assessment towards

operational strategies when respondents are grouped according to
profile.

Scope and Delimitations of the Study

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The focus of this study is to determine the benefits of having Operational

strategies in Managing a small retail stores in Pasig City. Particularly, to
describe the demographic profile of the respondents. According to Nature of
Business, Form of Business, Number of years in Operation, Number of
Employees, Average monthly net profit?

The Purpose of this Survey is to assess the selected Family - owned

business to manage a small retail stores in terms of Top down, Out Side in,

Bottom up, Inside Out. Only those family owned business in Pasig City
will be the respondents in the survey. The Survey, On the Benefits of having
Operational strategies in managing a small retail store, Family own business
was conducted from March to May 2022 and included only 60 participants.

Significance of the Study

To the Employees- This study can also be useful to Employees because this
can give them better workplace environment and It can boost their confidence
working in a company that has a stable and effective Operations Strategy.
This will also build better relationship between stakeholders of the companies
to be able to understand how Operations Strategy affect the flow of the
business. As an employee choosing a good company that cares for their
employees is way more important than being in the company that never have
plans in both business and employees.

To the Companies- This will help firms to be able to have a deeper

understanding on how important Operations Strategy in the flow of business.
This should be done and plan ahead to remain the stability consistency of the
business in order to have a better company decision making.
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To the Future Researchers- This study will serve as their guide when their
research becomes relevant to this paper and it allows them to be more
knowledgeable about Benefits of having Operations Strategy in managing a
small retail stores.

To the Students- It can be reliable to the students in the understanding of

how important this Operations Strategy when conducting a business and why
do you have to consider this benefits whether your business is big or small.

Definition of Terms

To better understand and appreciate the study, the important

things operational phrases are described as follows:

Benefits- something that produces good or helpful results or effects or

that promotes well-being.

Having- the state of possessing, owning or holding something.

Operational- the operational definition of anxiety could be in terms of a

test score, withdrawal from a situation, or activation of the sympathetic

nervous system.

Strategies- a carefully developed plan or method for achieving a goal or

the skill in developing and undertaking such a plan or method.

Managing- the process of guiding the development, maintenance, and

allocation of resources to attain organizational goals.

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Small- having comparatively little size or slight dimensions

Retail- Retail is the sale of goods and services to consumers, in contrast

to wholesaling, which is sale to business or institutional customers.

Store- an establishment where merchandise is sold, usually on retail

basis.

CHAPTER II

REVIEW OF RELATED LITERATURE

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This chapter presents the related studies conducted by individuals to the

pertinent study. These articles discuss the theories, concepts and principles

relevant to the research being undertaken by the researcher.

TOP DOWN

According to FerreiraAn aaManuel Duarte Pinheiroa Jorgede Britoa

Ricardo Mateusb December (2019) One of the top ten most carbon-
intensive industries is retail. This article is unique in that it examines
what has happened in corporate retail as a result of the Paris
Agreement, as well as decarbonization trends. A qualitative comparison
was made between the top 27 worldwide retailers, ranked by revenue,
and their policy, strategy, and energy-related building solutions for the
reporting periods of 2014–2015 and 2016–2017. Data from each
retailer's sustainability reports was analyzed and arranged into distinct
tables based on the variables policy, strategy, and energy-related
building practices. To discover distinct decarbonizing measures, a
comparison study was conducted. Corporate governance is becoming
more important in the face of climate change. Setting aggressive energy
objectives is one strategy for decarbonizing the retail industry.

As stated by Anastasios Hadjisolomou June 01 (2015) The goal

of this article is to look into how line managers control attendance at
work in the lean grocery retailing environment. Managers are under
pressure to keep labor expenses low as the sector becomes more
competitive and better control systems are implemented. As a result,
attendance becomes increasingly important, especially as worker levels
decrease. Given this, it is critical to comprehend the limitations of the line
manager's responsibility in attendance management, particularly in the
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lean food retail market and the hostile terrain of the supermarket shop
floor. The research examines the impact of lean retailing on line
managers' authority and offers a new sociological explanation of their
role in attendance management, providing insights into managerial
behaviors.

As stated by Melissa Parson, Sonya Glava, Peter Hasting,

Graham Marshall, James McGregorac Judith McNeill, PhilMorley,
IanReeve, Richard Stayner (2016).The use of an index to assess
catastrophe resilience is a standard part of natural hazard management
and planning. Many assessments have been carried out all across the
world. Assessment purpose, top-down or bottom-up assessment,
assessment scale, conceptual framework, structural design, indicator
selection, data analysis and index computation, reporting and
interpretation are the seven common properties that should be
considered in the design of any disaster resilience assessment. We
present the creation of an Australian Natural Disaster Resilience Index
(ANDRI) based on resilience assessment properties. The ANDRI uses
indicators derived from secondary data with nationwide coverage to
employ a top-down approach. The ANDRI is a hierarchical model based
on coping and adaptive capacities that represents disaster resilience
potential. The ability to cope is limited.

As claimed by Alexius Sithole April (2020). Improving total tax

mobilization is a top priority for many countries. Improving tax
compliance is one approach to accomplish this. This necessitates a
thorough understanding of the tax gap, i.e. the difference between what
should and should not be paid. Until far, tax gaps in affluent countries
have mostly been calculated, and little is known regarding tax gaps in
poor countries. The knowledge of these gaps can aid policymakers in
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devising effective revenue mobilization measures. This article employs a

top-down technique to estimate the tax gap in South Africa, which
includes income tax. It estimates the gap in the non-financial corporate
sector, i.e. the difference between potential and actual corporate income
tax under existing tax legislation, using national accounts data and tax
administrative data. The total deficit is estimated.

According to jinghan Zeng March 30 (2022) .This chapter looks at

how China's AI strategy is defined and how it is contested at home.
China's stated goal of becoming a worldwide AI superpower by 2030 has
sparked a lot of interest. Many see China's approach as a "geopolitically
driven" "top-down" national policy reflecting Beijing's desire for a China-
centered AI order and assuming a coordinated national effort to achieve
a single central goal. The current analyses of China's AI policy,
according to this chapter, are incorrect. This chapter explains why
China's AI approach is not a top-down nationally concerted command
approach to achieve Beijing's geopolitical aims by exploring the structure
of China's fragmented authoritarian system and the role of China's state
and non-state actors in the AI-related policy process.

CHAPTER III
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RESEARCH METHODOLOGY

This chapter presents a description of the method use by the researcher

in this study. The presentation includes the research design, sampling

scheme, description of the respondents, instrumentation, validation of

instrument, data gathering procedure and statistical treatment of data.

Research Design

The researcher will use a quantitative method for this study to determine the

benefits of having operational strategies in managing a small retail store. Collecting

quantifiable data and performing statistical, mathematical, or computational

techniques is quantitative research that defined as a systematic study of

phenomena. Quantitative research methods acquire information from current and

potential clients through sample methods and online surveys.

The researchers collected data by conducting a survey. The researchers

formulated a set of questions by the use of google form to be answered by people

who have their operational strategies in managing own small retail business store.

located at Pasig, City. The researchers also browse the internet to find the related

studies to support this study.

Research Locale

This study focuses on benefits of having operational strategies in managing

stores located in Pasig City. This section was chosen to seek and describe

demographic data of the respondents based on described the nature of business,

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form of business, and number of years in operation,average monthly net profit, of

small retail business respondents.

The goal of this study is to assess small retail business in terms of

topdown,outside in, bottom-up and inside out products. This research was

conducted from March to May 2022.On having benefits in operation strategies used

to managing a small retail stores in Pasig City.

Figure 3.1 Map of the Pasig City

Population and Sampling

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A population is a group of people or objects from which data is collected and

analyzed (Kombo, 2005). This definition is directly related to the study's goal. The

researchers will used simple random sampling in surveying to determine the study's

respondents. A simple random sample is a type of probability sample in which a

researcher chooses a subset of the population at random. This study's target

population consists of 60 participants on having benefits in operation strategies

used to managing a small retail stores in Pasig City. The random sampling method

is the primary concern in conducting this survey research. This study is to support

sustainable strategies of small retail store were given a questionnaire to answer

using Google form documents.

Population Frame and Sampling Scheme

Description of the Respondents

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Research Instruments

Survey questionnaire was the main research instrument used to gather

data from the respondents. The researcher-made questionnaire was created

in google form. The questions were formed base on the indicators of the

study, and it was merged to formulate a total of 70 questions enough to

assess the effectiveness of having operational strategies on managing small

retail stores at Pasig City. The first section of the questionnaire is about the

profile of the respondents and the second section of the questionnaire is

about the assessments of the effect of operational strategies on small retail

store.

The level of effectiveness of having operational strategies on managing

a small retail store was described using a Likert 5-point pointing scale. The

Range value and the Interpretation were shown below.

Range Value Interpretation

4.50-5.00 Very Satisfied

3.50-4.49 Satisfied

2.50-3.49 Neutral

1.50-2.49 Unsatisfied
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1.00-1.49 Very Unsatisfied

Data Gathering Procedure

The researcher will request the first stage of the data collection

procedure. Before distributing the questionnaire, each business respondent

was given permission via a letter and a personal meeting. Randomly, conduct

an interview and for a better understanding of the situation, a survey

questionnaire was created.

After the questionnaires and interviews were distributed, the data

was analyzed. The information gathered was regarded as private and was not

shared with other participants or the public.

persons who were not part of the research effort, and these were only used

for the purposes of the study.

The researchers will collect the data and proceed in tabulating and

summarizing for statistical analysis and interpretation.

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Statistical Treatment of Data

Statistical analysis is an important step in interpreting quantitative

data using statistical methods. Researchers have created a summary

organization, assessment, and understanding of numerical data.

The researchers will used inference statistics in this study. The purpose

of using these statistics is to infer the population based on data from the

population. With these statistics, instead of collecting data from the entire

population, you only need to collect two or more samples from thousands of

residents and make inferences about the entire population based on those

samples. The following are statistical techniques used to treat research data

for detailed solutions to research problems.

1 . Percentage. It described the nature of business, form of business, and

number of years in operation,average monthly net profit, of small retail

business respondents.

Formula: f x 100

Where:

% = percentage

f = frequency

n = no. of respondents

2. Weighted Mean. It was used to explain respondents' ratings on the

variables that benefits of having operational strategies in managing a small

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retail stores, such as topdown,outside in, bottom-up and inside out. The

formula of the weighted mean is:

WM=∑fx

Where:

WM = the weighted mean

f = the frequency of each item

x = the assigned weight

N = the total no. of small retail business respondents

∑fx = the sum total of the frequency weight multiplied by

the assigned weight.

3. Likert 5-point rating scale. It is used to evaluate the level of strategy

with the study. The questionnaires of the rating were as follows:

Range Value Interpretation

4.50-5.00 Very Satisfied

3.50-4.49 Satisfied

2.50-3.49 Neutral

1.50-2.49 Unsatisfied

1.00-1.49 Very Unsatisfied

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CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

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This chapter covers the results and discussions of the data gathered in

accordance with the research problems. Tables were analyzed with the

corresponding interpretation of data in the context of the problem raised in

and the responses of business respondents. The first and second part, which

is based on the results of the survey, deals with a quantitative analysis of

data. The third part is based on the result of the interview, is a qualitative

interpretation.

CHAPTER V

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

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This chapter summarizes the study on sustainable strategies of selected

family-owned businesses. It presents the results of the quantitative and

qualitative data analysis to come up with findings and conclusions drawn from

the research that serve as basis for the recommendations.

Summary of Findings

The following observations were drawn from the result of the

questionnaires and interview:

Conclusions
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Based on the foregoing findings, the following conclusions were drawn:

Recommendations
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Based on the findings and conclusions, the following recommendations

are hereby presented: