COLLEGE OF ENGINEERING AND AERONAUTICAL

TECHNOLOGY
461 William Shaw St., Grace Park Caloocan City

LUXSKY (RELAX & BREW)

“A finals project requirement in AeE 655: Engineering Economy and AeE 658: Strategic
Operations, Supply Chain and Material Management”

Submitted by:
ASPERGA, LEONARDO
BONIFACIO, RADSEN
CONCEPCION, KRISTOPHER
CRUZ, DOMINIQUE
GONZALES, MAXINE JOY
IRANGAN, CHRISTIAN PHER
LIU, LOUISE RENZ
MENESES, SHANELLE
PAULE, SEAN
ROMERO, MADJE AUDREI
ROSARIA, JHAZMINE KAYCEE

Submitted to:
Engr. Jairus James T. Ignacio
COMPANY OVERVIEW

Name of the Company: LuxSky (Relax & Brew)

Logo:

LOTUS – At the heart of the logo, the lotus petals unfurl in graceful lines. The
lotus, a revered symbol of relief and relaxation and the blooming experience
guests encounter at LuxSky (Relax & Brew).

CUP OF COFFEE – At the center of the logo, a stylishly depicted coffee cup
takes flight. Nestled within the design, subtle element reminiscent of aviation—
a representation of plane wings with the background of a sunset which
symbolizes the view deck offered by LuxSky (Relax & Brew)

EARTHY TONES – A palette of warm, inviting tones—perhaps rich browns and

coffee hues—creates a comforting backdrop. Soft, airy gradients evoke a
sense of openness and relaxation, mirroring the view deck's atmosphere. It also
symbolizes the concept of sunset and sunrise as the business is open 24/7.

PILOT’S PIN - An intricately designed coaster takes center stage, evoking

elegant curves and contours reminiscent of a pilot's pin. Its form reflects
continuity and unity, echoing the circle of hospitality and shared experiences.

AIRPLANE – At the heart of the logo, a modern design of an airplane takes

flight, symbolizing the cafe's connection to aviation and the spirit of travel. Its
wings extend gracefully, evoking a sense of freedom and exploration.

Date of Establishment: June 07, 2021

Location of the Company: 150 Newport Blvd, Pasay City, Philippines

MISSION AND VISION

MISSION
To develop a fully immersive, aviation-inspired haven where every guest goes
on a unique adventure that combines luxury and relaxation with the
exhilaration of flight. We aim to provide a sense of solitude and wanderlust by
offering exceptional food, luxurious experiences, and therapeutic areas.

VISION
We envision a dynamic spot where the spirit of aviation sparks a desire for
discovery and luxury. Our goal is to become the go-to destination for travelers
and enthusiasts looking for an unmatched combination of luxury, adventure,
and relaxation in a captivating aviation-themed setting, all while seamlessly
fusing the excitement of travel with the tranquility of a retreat.

CORE VALUES

AVIATION APPRECIATION
Celebrating the spirit of aviation, honoring its history, innovation, and the sense
of wonder it brings to travelers and enthusiasts.

HOSPITALITY EXCELLENCE
Providing exceptional service and creating a welcoming atmosphere that
exceeds the expectations of guests from diverse backgrounds.

WELLNESS AND RELAXATION

Prioritizing the well-being of guests by offering relaxation amenities like
massage chairs, therapy services, and a tranquil environment conducive to
unwinding.

CUSTOMER-CENTRIC APPROACH
Placing customers at the center by understanding their needs, delivering
personalized experiences, and ensuring their comfort and satisfaction

CONVENIENCE AND ACCESSIBILITY

Prioritizing convenience for travelers by offering easy accessibility, efficient
services, and a seamless experience near the airport setting.

COMPANY HISTORY
LuxSky takes pride in its unique concept, blending the world of aviation with
relaxation and cafe delights. LuxSky was founded in 2021 by a group of enthusiastic
friends who have a passion for aviation and a goal to provide an amazing
experience for their customers. It’s been a popular destination for those who are
looking for a one stop place for dining, relaxation, and leisure with a spectacular
view.

LuxSky's journey begins with its innovative founders - Maxine, Audrei, Shanelle, Louise,
Jhazmine, Sean, Kristoffer, Christian, Leonardo, and Radsen. Led by their CEO,
 Dominique. They all have passion for aviation and have a degree in aeronautical
engineering.

Pooling their skills and resources, the group of friends embarked on a journey to bring
their dreams to life. They methodically planned and designed LuxSky for years,
ensuring that every part of the business mirrored their common vision. The location
they chose was a spacious building with ample natural light, which they transformed
into a haven that displayed the ambiance of an airport lounge.

LuxSky soars to new heights today, offering a haven of relaxation and exceptional
delight for aviation enthusiasts and wellness seekers alike. With its unique fusion of
aviation-themed cafe, exceptional spa services, and a cozy capsule motel, LuxSky
remains a testament to the entrepreneurial spirit and shared dreams of its visionary
founders.

ORGANIZATIONAL STRUCTRURE
PRODUCT AND SERVICES

VIEW DECK
LuxSky (Relax & Brew), tucked away in the center of the busy airport terminal,
is a peaceful haven amid the hustle and bustle of travel. Climb to our exclusive
observation deck, a place where comfortable dining and a broad panorama
combine to provide tired travelers with a break from the bustle of the terminal.
AIRPORT PANORAMA
Perched strategically atop the terminal, our spacious open-air view deck offers
an unparalleled vantage point. Witness the choreography of planes taxiing on
runways, the elegant ballet of departures and arrivals, and the skyline dotted
with aircraft against the backdrop of the cityscape.
AIRPORT ADVENTURE
As you savor your meal or sip your drink, immerse yourself in the dynamic airport
scenery. Watch as travelers embark on journeys, planes take flight, and the
terminal buzzes with activity. Our view deck transforms waiting time into an
experience of anticipation and fascination.

CONVENIENCE AND CONNECTIVITY

Equipped with charging stations, high-speed Wi-Fi, and attentive service,
LuxSky (Relax & Brew) ensures that your time here is both relaxing and
productive. Catch up on work, connect with loved ones, or simply unwind
before your next adventure.
CAPSULE MOTEL
Nestled within the vibrant pulse of the airport terminal, offering weary travelers
a unique blend of comfort and convenience.
EFFICIENT COMFORT
Amidst the whirlwind of travel, our capsule motel offers an efficient and restful
solution. Each meticulously designed capsule is a private haven—a cocoon of
comfort, equipped with a plush bed, soft ambient lighting, and essential
toiletries.
CONVENIENT PROXIMITY
Located just steps away from the cafe, these cozy capsules provide an ideal
respite for travelers seeking a quick nap, an overnight stay, or a moment of
relaxation between flights.
ACCESSIBILITY AND SECURITY
Our capsules prioritize security and accessibility, ensuring a safe and hassle-
free stay. Accessible 24/7, guests enjoy privacy within their capsules while
having the convenience of our cafe and airport facilities just moments away.

CAFE INTEGRATION
Indulge in a delightful culinary experience at our cafe before or after your stay.
 Whether it's a complete meal, a refreshing beverage, or a quick snack, the
cafe complements your stay with an array of delectable offerings.

AVIATION-THEMED CAFÉ
A fascinating cafe located right in the busy corners of the airport. It's more than
simply a place to eat; it's an interactive hospitality adventure that combines
delectable food with the thrill of flight.
AVIATION AMBIANCE
As you enter, the ambiance transports you into a world of aviation wonder.
Vintage airplane parts, aviation memorabilia, and sleek decor reminiscent of
aircraft interiors adorn the walls, creating an ambiance that pays homage to
the golden age of flight.
RUNWAY-INSPIRED DINING
Our menu celebrates the spirit of aviation with a fusion of international cuisines.
From "Pilot's Platters" featuring globally inspired dishes to "LuxSky Specials"
inspired by in-flight dining experiences, every bite is a culinary adventure.
MASSAGE CHAIRS AND THERAPIST
Tucked away from the bustle of the airport, tired passengers find refreshment
and comfort amid the hustle and bustle of travel. Our haven provides cutting-
edge technology along with skilled therapists to guarantee a peaceful break
in your travels.
MASSAGE CHAIR HAVEN
Indulge in instant relaxation with our state-of-the-art massage chairs. These
chairs, equipped with customizable massage programs, provide travelers with
a rejuvenating escape from the stresses of travel.
EXPERT THERAPISTS
For a more personalized experience, our certified massage therapists offer an
array of therapeutic services. From tension-relieving massages to revitalizing
treatments, our skilled professionals provide a tailored wellness experience.
VARIETY OF SERVICES
Choose from a menu of treatments designed to address various travel-related
stressors. Options include neck and shoulder massages to alleviate discomfort
from long flights, foot reflexology for tired feet, and full-body relaxation sessions.

SWOT ANALYSIS
STRENGTHS:
LuxSky Cafe boasts several notable strengths that position it as a unique and
compelling establishment in the competitive cafe industry. With its distinctive
aviation-themed concept, featuring alfresco dining and a capsule hotel-
themed lounge, LuxSky Cafe creates a memorable and immersive
atmosphere for customers.
 This uniqueness is further complemented by its strategic location in or near an
airport, offering a one-of-a-kind experience to both travelers and airport
visitors. The cafe's diverse menu, inspired by aviation themes, showcases
creativity and innovation, catering to a wide range of tastes. The inclusion of
a capsule hotel-themed lounge not only addresses the needs of travelers
during flight delays but also sets LuxSky Cafe apart from conventional cafes.

The cafe's adept integration of technology, including online reservations and

mobile payments, aligns with modern consumer expectations. Additionally,
LuxSky Cafe's engaging social media presence, well-trained staff, and
potential for collaborations with airlines or local businesses contribute to its
overall strength and potential for long-term success.

WEAKNESSES
LuxSky Cafe may face certain weaknesses or limitations that warrant attention
for strategic improvement. One potential limitation could be the susceptibility
to fluctuations in airport traffic, impacting the cafe's customer base. The cafe's
reliance on a unique theme may pose a challenge if market preferences shift
or if it fails to consistently refresh and innovate its offerings. Additionally, the
capsule hotel-themed lounge, while distinctive, may face challenges related
to regulatory compliance, as hospitality regulations and standards can be
complex and subject to change.

Another potential weakness could be the need for continuous investment in

marketing efforts to maintain visibility and attract customers. Limited brand
recognition, particularly outside of the airport context, may also be a
challenge.

Furthermore, if there are issues with the supply chain for specialty ingredients or
aviation-themed decor, it could impact the consistency and quality of
offerings. Addressing these weaknesses through proactive strategies and
continuous improvement measures will be essential for LuxSky Cafe's sustained
success.

OPPORTUNITIES
LuxSky Cafe, being an aviation-themed cafe with alfresco dining and a
capsule hotel-themed lounge, can capitalize on several opportunities within
the aviation industry by aligning with market trends, addressing emerging
customer needs, and leveraging technological advancements. Here are
some potential opportunities:

Catering to Aviation Enthusiasts:

Tap into the growing community of aviation enthusiasts by offering unique
experiences and themed events. This could include aviation-themed nights,
special menu items inspired by aircraft, and collaborations with aviation-
related organizations.

Airport Collaboration:
Collaborate with nearby airports to enhance the overall airport experience.
LuxSky Cafe could partner with airlines for special promotions or provide
exclusive services to passengers, such as pre-flight dining packages or priority
access for capsule hotel bookings during flight delays.

Technology Integration:
Utilize technology to enhance the customer experience. Implement mobile
apps for convenient ordering and payment, virtual reality experiences that
simulate flight journeys, and augmented reality features that bring aviation
history to life within the cafe.

Sustainable Practices:
Embrace sustainability to align with industry trends. Source local and
sustainable ingredients, minimize waste through eco-friendly packaging, and
implement energy-efficient technologies. Communicate these practices to
appeal to environmentally conscious customers.

Innovative Menu Offerings:

Stay ahead of culinary trends by offering innovative menu items. Consider
collaborating with local chefs or mixologists to create signature aviation-
themed dishes and beverages, keeping the menu fresh and appealing to a
diverse customer base.

Flexible Workspace for Travelers:

Recognize the increasing trend of remote work and create a cafe
environment that caters to travelers who need a comfortable and well-
equipped workspace. Provide reliable Wi-Fi, charging stations, and amenities
for business travelers or digital nomads.

Airport Lounge Services:

Leverage the capsule hotel-themed lounge to provide premium services for
travelers experiencing flight delays or layovers. This could include spa services,
private sleeping pods, and exclusive lounge access for members.

Partnerships with Airlines:

Explore partnerships with airlines to offer joint promotions or loyalty programs.
LuxSky Cafe could provide discounts or exclusive offers to passengers with
boarding passes, creating a mutually beneficial relationship with airlines.

Events and Entertainment:

Host aviation-themed events, such as plane-spotting gatherings, pilot meet-
and-greets, or live music nights with an aviation twist. This can attract a diverse
audience and create a sense of community around the cafe.
Online Presence and Social Media Marketing:
Strengthen the online presence through active engagement on social media.
Share visually appealing content, collaborate with influencers in the aviation
and travel niches, and run targeted online marketing campaigns to reach a
wider audience.

Cultural and Local Collaborations:

 Collaborate with local artists, musicians, and cultural organizations to infuse the
cafe with a unique and authentic atmosphere. This can attract a diverse
clientele and contribute to the cafe's appeal as a cultural hub within the
airport environment.

By capitalizing on these opportunities, LuxSky Cafe can differentiate itself within

the aviation industry, cater to evolving customer needs, and stay ahead of
market trends. The key is to create a memorable and immersive experience
that resonates with both aviation enthusiasts and a broader audience of
travelers.

THREATS:
LuxSky Cafe, like any business, may face various threats and challenges that
require careful consideration and strategic planning. Here are potential
threats and challenges that LuxSky Cafe should address:

Intense Competition:
The cafe industry, especially around airport settings, can be highly
competitive. LuxSky Cafe should continuously monitor and differentiate
itself from competitors by offering unique experiences, innovative menu
items, and exceptional customer service.

Economic Uncertainties:
Economic downturns can impact consumer spending, affecting the
cafe's revenue. LuxSky Cafe should be prepared to adapt pricing
strategies, consider value-added promotions during economic
downturns, and maintain financial flexibility.

Regulatory Changes:
Changes in health and safety regulations, food safety standards, or
other regulatory requirements can impact the cafe's operations.
Keeping abreast of regulatory changes and ensuring compliance is
crucial to avoid disruptions and legal issues.

Supply Chain Disruptions:

The cafe's reliance on specific suppliers for unique ingredients or
aviation-themed decor could be a vulnerability. LuxSky Cafe should
diversify its supply chain, explore local sourcing options, and establish
contingency plans for potential disruptions.

Changing Consumer Preferences:

Shifts in consumer preferences, dietary trends, or lifestyle choices can
impact the cafe's popularity. Regularly assess customer feedback,
conduct surveys, and stay informed about market trends to adjust the
menu and services accordingly.

Health Crises and Pandemics:

Unexpected health crises, such as pandemics, can severely impact the
hospitality industry. LuxSky Cafe should have contingency plans for
ensuring the health and safety of customers and staff, including flexible
 staffing arrangements and sanitation protocols.

Technological Disruptions:
Rapid technological advancements or disruptions could impact the
cafe's operations. LuxSky Cafe should stay updated on technology
trends to ensure its systems, online platforms, and customer interfaces
remain current and competitive.

Security Concerns:
Security threats, both physical and cyber, pose risks to the cafe's
operations and customer trust. Implement robust security measures for
both the physical cafe space and online platforms to protect against
potential threats.

Fluctuations in Tourism:
The cafe's location in or near an airport makes it vulnerable to
fluctuations in tourism. Changes in travel patterns, geopolitical events, or
natural disasters can impact the number of customers. Diversifying
marketing efforts to attract both local and tourist clientele can help
mitigate this risk.

Environmental Impact:
Increased awareness of environmental issues may lead to changes in
consumer behavior. LuxSky Cafe should proactively adopt sustainable
practices to address environmental concerns and appeal to eco-
conscious customers.

Global Events and Geopolitical Risks:

Geopolitical events, such as conflicts or diplomatic tensions, can impact
international travel and the aviation industry. LuxSky Cafe should monitor
global events and have contingency plans to address potential
disruptions in customer traffic.

By identifying and proactively addressing these threats and challenges, LuxSky Cafe
can enhance its resilience, maintain a competitive edge, and navigate uncertainties
in the dynamic business environment. Regular strategic assessments and flexibility in
adapting to changing circumstances are essential for long-term success.

STEEPLE ANALYSIS

SOCIAL
Cafes are among the best spots for people to unwind in peace, and you may
also see people studying. Additionally, information can be shared there.
Seeing the various planes take off and land at the observation deck cafe will
make people feel more at ease. This is especially true now that people are
drawn to the area's aesthetic appeal. Adults who enjoy indulging themselves
can enjoy a meal or beverage while receiving spa services. Also, for those
people who are experiencing delayed flights at the airport, we have a private
capsule hotel available for them to rest while waiting for the rescheduled flight.
 For their solitude, we have a capsule hotel that was designed in Japan and
has a bed inside. People will be eager to go to sleep in anticipation of
relaxation, considering the low cost per bed. In addition, our staff ensures that
employees receive thorough and hands-on training and a seminar regarding
our company's rules. The view deck for planes taking off and landing around
the area also offers alfresco dining, which could be the main attraction of the
cafe.

TECHNOLOGICAL
The online presence of the cafe would help the market. Creating social media
platforms for this cafe is highly important in the marketing of a business for
several reasons.
Increased Brand Visibility:
Social media platforms offer a wide audience, which enable us to
reach a wider audience and improve brand visibility. Having an
online presence on well-known platforms facilitates
communication between companies and prospective clients.
Customer Engagement:
Social media makes it easier to communicate directly with clients.
We are able to have real-time conversations, answer questions,
and resolve issues. This strengthens ties with our clients and
promotes a feeling of warm community.
Brand Authenticity and Personality:
Social media gives companies the opportunity to show off their
individuality and personalize their brand. Through revealing
company culture, behind-the-scenes content, and anecdotes,
organizations may establish a personal connection with their
customers and foster authenticity.
Targeted Advertising:
Social networking sites give advertisers a wide range of targeting
choices. To make sure that their marketing efforts are focused on
the most appropriate audience, this gives us an opportunity to
customize the advertisements to target specific groups of people,
interests, and behaviors.

Market Research
Social networking sites provide advanced alternatives for
advertising targeting. In this way, we can target the most relevant
audience with their marketing by customizing their ads to fit
particular demographics, interests, and behaviors.
Content Distribution
Content may be effectively distributed using social media.
Through the use of blog posts, videos, infographics, and other
content formats, we can establish ourselves as authorities in their
field by providing their audience with insightful information.
Community Building
We could create a community around our company by using
social media. Through forming and taking part in groups,
 conversations, and events, companies can improve their
consumer relations and cultivate a devoted following.
Competitive Advantage
A strong social media presence can give us a competitive edge.
Many businesses use social media efficiently. It enables
companies to demonstrate innovation, keep up with market
trends, and set themselves apart from rivals.

Social media has grown into an essential part of marketing plans for companies of all
kinds in the current digital era. It provides a dynamic and engaging platform for
connecting with the intended audience, increasing brand recognition, and
eventually boosting sales.

We also used social media to accommodate booking services for the capsule motel
and spa services. Using social media platforms like Instagram and Facebook is
increasingly in demand for businesses, especially those in the service industry. This
could provide a convenient way for customers to access and book services. With
integrated booking features or direct links to booking pages, customers can make
reservations without leaving the platform, offering a seamless and user-friendly
experience. Also, this allows direct communication between us and customers.
Customers can inquire about services, availability, and other details through private
messages or comments, fostering a quick and personalized booking process.
Platforms like Instagram are highly visual, making them ideal for showcasing services
through images and videos. We can create visually appealing content that highlights
the quality and uniqueness of their services, influencing potential customers to book.

Regularly updating social media profiles with engaging content helps build trust and
credibility with the audience. Businesses can share customer reviews, showcase their
expertise, and respond to inquiries promptly, creating a positive impression that
encourages bookings. This could also be a hub for social proof. Positive reviews,
recommendations, and user-generated content can be showcased, influencing
potential customers to trust the quality of the services and proceed with bookings. In
this way, we could also promote exclusive discounts or limited-time offers,
encouraging followers to take advantage of special deals by making bookings. This
can drive immediate action and boost service reservations.

In summary, utilizing social media platforms like Instagram and Facebook for booking
services could make a powerful way to connect with the clients, showcase their
offers, and streamline the reservation process. It enhances accessibility, fosters
engagement, and contributes to building a strong online presence.

ENVIRONMENTAL

A cafe, spa, and view deck can have various impacts on the environment, both
positive and negative. Here are some impacts associated with each:

Cafe
▪ Energy consumption: The operation of coffee machines, refrigeration,
lighting, and other equipment can contribute to greenhouse gas
emissions.
 ▪ Waste generation: The use of single-use cups, straws, and packaging
can generate significant waste, especially if not properly managed or
recycled. Our company implements a “no plastic policy”. We use
alternatives that are eco friendly such as bamboo cups, paper straws,
and paper bags.

Spa and Motel

• Energy consumption: Facilities such as massage chairs can use large
amounts of power.
• Waste generation from guest rooms, such as single-use toiletries and
packaging, needs to be managed
• The use of cleaning agents within the motel for housekeeping purposes
can have environmental implications.

To be a better steward of the environment as a company that offers relaxation

and dining, there are several actions that we are in the process of:
Implement sustainable practices:

▪ Incorporate eco-friendly practices in our operations, such as using

energy-efficient appliances, reducing water consumption, and ensuring
proper waste management and recycling.

▪ Engage in conservation initiatives: Partner with local environmental

organizations or initiatives to support conservation efforts. We can
participate in tree planting campaigns, beach clean-ups, or sponsor
environmental education programs. Regarding the competition, several
coffee shops near us import their products and goods from different
countries. Thus, impacts the environment, resulting in air pollution. LuxSky
cafe that are offered by the business are sourced locally in order to
support local farmers.

It is essential to stay informed about what the competition is doing that impacts
the environment. Some of the common environmentally impactful practices in
these industries include excessive energy consumption, waste generation, and
unsustainable sourcing of materials. Regarding sustainability and the circular
economy, more and more businesses are adopting eco-friendly practices and
striving to minimize their environmental footprint. These initiatives are positively
impacting both our business operations and the environment.

ECONOMIC

A company that includes a cafe with a view deck, a spa, and a capsule motel is
likely to be in the hospitality industry, specifically in the tourism and accommodation
sector.

Considering the economic picture, it is important to analyze the current state of the
tourism and hospitality industry. If the economic conditions are favorable, such as
strong consumer spending, low unemployment rates, and high levels of disposable
income, the business cycle for this company may be in an expansion phase. During
 this phase, there is typically increased demand for travel and leisure activities, which
can lead to higher occupancy rates, increased revenue, and potential business
growth. Since the GDP of the Philippines expanded this year (2023) we are currently
on the favorable side.

However, if the economic conditions are unfavorable, such as a recession or

economic downturn, the business cycle for this company may be in a contraction
phase. During this phase, there tends to be a decline in consumer spending, reduced
travel, and tightened budgets, which can lead to lower occupancy rates,
decreased revenue, and potential business challenges.

The cafe, spa, and capsule motel have faced challenges due to lockdowns,
restricted operations, and health concerns that have limited customer footfall and
revenue. Many businesses in these industries have had to adapt their operations by
implementing safety measures, such as enhanced hygiene protocols and
contactless services, to meet health guidelines and regain consumer trust.

LEGAL

Any businesses or companies in the Philippines are required to have permits from the
different governmental departments. The business is regulated by the Department of
Trade and Industry as well as the Bureau of Internal Revenue. For LuxSky, which is an
aviation-themed café, capsule motel, and massage business, several legal factors
could come into play:

• Health and Safety Regulations: Compliance with health and safety standards for
the café and massage services is crucial. The motel should also adhere to safety
regulations for accommodation spaces.
• Licensing and Permits: Operating a café or motel and offering massage services
may require specific licenses and permits. For example, food handling licenses for
the café, lodging permits for the motel, and massage therapy licenses
• Employment Laws: Adhering to labor laws regarding employee rights, wages,
working hours, and fair employment practices is essential for running the business
based on the Labor Code of the Philippines published by the Department of Labor
and Employment.
• Data Protection and Privacy Laws: Since the business collects customer
information for bookings or services, it needs to comply with data protection laws
to safeguard customer data based on RA 10173, or the Data Privacy Act of 2012.

By complying with these legal practices, LuxSky can avoid legal risks, assure
adherence to Philippine law, and foster a culture of safety and a healthy
environment within the company.

POLITICAL

Political Stability:
The political stability of a region is undeniably a critical factor that profoundly
influences the success and sustainability of any business venture. In the context
of Pasay City in the Philippines, the overall political environment has been
 relatively stable, establishing a favorable atmosphere for various business
operations. This stability is paramount for the smooth functioning of enterprises,
providing a sense of security and predictability. However, while the broader
political landscape may be stable, it is imperative for businesses, particularly in
the dynamic and diverse environment of Pasay City, to remain vigilant and
attuned to ongoing political developments at both the national and local
levels.

The importance of monitoring political developments cannot be stated, as changes

in government policies or unexpected political unrest can swiftly impact the business
landscape. In Pasay City, where a vibrant and competitive business ecosystem exists,
staying informed and adaptable becomes a strategic imperative. The ability to
anticipate and respond to political changes effectively can be a differentiator for
businesses seeking longevity and success.

Opening a business must consider the potential political actions that may directly or
indirectly affect its operations. For instance, the local government in Pasay City might
introduce policies fostering the growth of small businesses, promoting tourism, or
enhancing overall economic development. Such initiatives could create a
supportive environment for entrepreneurship, providing opportunities for businesses
to thrive.

Government Policies:

Understanding the local government's policies and regulations is crucial for a

successful business venture. The national and local governments in the
Philippines have been actively promoting entrepreneurship and tourism. It's
important to keep abreast of any policies related to small businesses, food
establishments, and tourism that might affect your coffee shop. Compliance
with health and safety standards, licensing requirements, and taxation policies
are key considerations.

Taxation Policies:

Navigating the intricacies of taxation is a fundamental aspect of running a

business in the Philippines. Corporate income taxes are levied on a company's
net income, necessitating a keen understanding of applicable rates,
deductions, and exemptions for effective financial planning. Non-compliance
with corporate tax regulations can lead to penalties and legal ramifications.
Additionally, the imposition of a Value-Added Tax (VAT) on the sale of goods
and services requires businesses to be vigilant about rates and registration
thresholds. Proper documentation and reporting of VAT transactions are
imperative to avoid fines and maintain compliance. Beyond these, businesses
must be aware of other applicable taxes, such as local or excise taxes,
depending on their activities or industry. Seeking guidance from a local
accountant is advised, given the intricacy of tax regulations. A professional
can offer personalized advice, ensuring that all obligations are met and
exploring opportunities for tax optimization. Compliance is not merely about
avoiding penalties but also about strategically optimizing the business's tax
structure. Moreover, recognizing the potential impact of tax policy changes
 underscores the need for businesses to stay informed and adapt their financial
strategies accordingly to ensure sustained success.

Infrastructure Development:

Pasay City, being a part of Metro Manila, is subject to infrastructure

development initiatives. The government's efforts to improve transportation,
roads, and overall connectivity can directly affect our business accessibility
and customer base. Keep an eye on any planned infrastructure projects in the
area and how they might impact foot traffic near Terminal 3.

ETHICAL

LuxSky's innovative concept and success in blending aviation with relaxation and
café delights come with various ethical considerations, especially in the realm of
sustainability and fair labor practices, which are increasingly crucial in the hospitality
industry.

• Fair Wages and Working Conditions: Ensuring that all employees receive fair
wages and work in safe, healthy environments is crucial. This includes offering
benefits, reasonable working hours, and adequate breaks.
• Employee Well-being: Prioritizing the well-being of employees by providing
opportunities for growth, training, and advancement within the company.
Creating a supportive work culture that values mental health and work-life
balance is essential.
• Ethical Sourcing: For the café and other aspects of the company, sourcing
products ethically is significant. This includes using ethically sourced ingredients,
supporting fair trade practices, and ensuring suppliers follow ethical standards.
• Transparency and Accountability: Being transparent with customers and
stakeholders about business practices, policies, and commitments to ethical
standards builds trust and credibility.

By prioritizing these ethical considerations, LuxSky can contribute positively to its

employees, the community, and the broader hospitality industry. This not only aligns
with ethical principles but also enhances the company's reputation and appeal to
customers who value socially responsible and ethically conscious establishments.
FINANCIAL AND BUDGET STATEMENT