Paete Science and Business College, Inc.

J. P. Rizal Street, Paete, Laguna

CHAPTER I

MANAGEMENT ASPECT

A. Form of Business Ownership

The proposed project shall be held and managed under the corporate form of

business organization, specifically as a closely-held stock corporation. Among the three

common legal forms of business organization, corporations have the largest financial

capacity in raising funds. As defined in Section 2 of the Corporation Code of the

Philippines, a corporation is an artificial being created by operation of law having the

right of succession and the powers, attributes and properties expressly authorized by

law or incident to its existence. As a corporation, the company will issue common

shares that should be well-controlled but the needed capital shall be acquired only

through equity financing. The capital stock assumed to be fully subscribed and paid

before the commencement of the business and will then be divided into shares and

authorized to distribute to the holders of such shares, both dividends and bonuses. The

business shall have five (3) incorporators and that the company’s shares shall not be

enlisted in any stock market nor offer its shares to the public. The management of the

company shall be rested in the Board of Directors as will be provided in the Articles of

Incorporators. The Board shall take informal actions even without actual meeting,
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

provided that the express or implies acquiescence of all stockholders is given, to make

business decision making easier and more focused. The business will comply with all

the requirements under the Corporation Code of the Philippines and shall commence

operations from the date of issuance of certification by the Securities and Exchange

Commission (SEC) is made

A Corporation is chosen since it is one of the expensive business structures to

begin. MugSpa is a corporation which is composed of three actively participating

owners and capitalist namely: Princess Nikka B Daga, Nadeyne Mitzele Valdevia and

Ronel De Leon and two other incorporators. The incorporators will contribute 80% of the

business capital and the other 20% will be from a bank loan. the legal requirements

involve simply registering a business name and obtaining any relevant licenses or

permits that relate to the specific type of business. Many Corporation businesses have

very expensive start-up costs as compared with other types of business structures. The

start-up investment typically includes the basic costs for equipment, marketing and

office utilities. However, the amount of the start-up costs may vary, depending on the

specific type of business.

B. Location of the Business

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

Mugspa business shall be located at 1110 P. Guevarra St. Sta. Cruz,

Laguna. This is the former area of Kuya J’s Restaurant has consistently over

the last few years been voted the best place to work and live in the Santa

Cruz, frequently making the top five and ten lists of Forbes, Money, and Inc.

magazines. Santa Cruz has one of the most educated populations that

loosely correlates to earning potential, or at least indicates a higher average

household income. Additionally, the downtown area has undergone a recent

renovation that has attracted a lot of new businesses as well as become a hot

urban area. Its location shall attract customers who are passing by along the

road. The size of the ground floor is 127 square meter and the 2nd floor is

155 square meter. It has a parking lot. The location is exposed to both

employees and students who can avail the services offered by the

establishment.

C. Capital Structure
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

Mugspa will capitalize on the strong demand for high-quality coffee and spa

business. The owners have provided the company with sufficient start-up

capital. With successful management aimed at establishing and growing a

loyal customer base, the company will see its net worth doubling in two years.

Mugspa will maintain a healthy gross margin, which combined with

reasonable operating expenses, will provide enough cash to finance further

growth.

There will be five (5) major contributors composing 80% of the internal funds

and 20% of the externally from bank loan.

Table 1. Shows the contribution and percentage holdings of the owners.

Contributor’s Name Percentage of holdings Capital

Princess Nikka B Daga 25% ₱1,250,000.00

Nadeyne Valdivia 20% ₱1,000,000.00

Ronel De leon 15% ₱750,000.00

Incorporator 4 10% ₱500,000.00

Incorporator 5 10% ₱500,000.00

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

Bank loan 20% ₱1,000,000.00

Total 100% ₱5,000,000.00

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

D. Name and Nature of Business

The name “MugSpa” was authentically constructed by the owners. The

idea of the proposed business is to provide quality service through spa

treatment with the combination of tea. MugSpa offers a unique combination of

relaxation and satisfaction after the treatment to help our costumer maintain

composure over stress that is acquired in their working environments.

MugSpa was built to kindle the idea of providing Filipinos two types of

relaxation treatment in a single place. The proponent of this business aims to

provide quality care and customer management to the people who will avail

the services being offered. It is the kind of place that is highly trendy in the

eyes of the “pinoy-millenials”. This is a must visit area for excellent leisure

time with friends and family.

E. Business Logo

The logo resembles the mantra “a sound mind and body”. In this present

era humans are prone to huge amount of stress that could be acquired in

both academic and business institutions. Thus, the owners believed that a
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

composed human state of mind could be attained through nonconformist type

of beverage mixed with spa treatment and a unique presentation of eco-

friendly facilities that would give the customers a dissimilar and memorable

experience and came up with the logo below.

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

Figure 1: Company Logo

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

F. Mission

MugSpa will provide a comforting, yet stimulating, atmosphere in which

customers will be able to relax both their body and mind, reconnecting their

daily lives to their true purpose through a wide range of holistic methods

including massage, body works, energy works, to its customers in

combination with untraditional beverages. Maintaining utmost carefulness and

safety through our well trained staffs that will be responsible for delivery of

premier quality service it can offer. will establish itself as a dependable

destination to which they can always come to escape the stresses of life, and

rejuvenate their energies, their souls, and their lives.

Vision

. To be the best among all the Coffee and spa business around the vicinity of

Laguna. We are aiming to attract as many customers as we can and gain

their trust with our services. That means providing outstanding quality and

service, cleanliness and value so we can reach the satisfaction of our

customers. By 2028, a premiere spot for relaxation offering a mixture of spa

and untraditional blend of drinks specializing in tea that will be known in the

ASEAN Region. Offering quality service through effective and efficient

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

customer management; leading in hospitality and care to be delivered to the

people

Main Competitors

The main competitors are _____ with a location in _______, ________ with

locations in __________________, __________’ with a location in

__________, __________ with a location in ___________,. Also, by nature of

their popularity we must also include these spas as main competition: _____

with locations in _______________, and _________ in far __________.

Strengths of the above are services offered: location proximity to major

housing developments, and name recognition. The weaknesses of these

competitors are general lack of promotion, concentration mainly in ______.

With our target location being _________, we will be servicing East, South,

West, Santacruz, Area, as well as downtown commuters.Our market

advantage is wide open, and will give us the opportunity to service a large

population base that is not currently being well served. When you include our

service of energy works, we become the sole provider of all two services of

Cooffee and spa not only in Santa Cruz area, but for the entire greater

Laguna area.
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

II. Pre-Operational Activities

a. Registration

 Mayor’s Permit

 Registration to Securities and Exchange Commission

 Registration to Bureau of Internal Revenue

 Registration to Philippine Health Insurance Corporation

 Registration to Social Security System

 Registration to (HDMF) Pag-ibig

 Legal requirement of the space rented

 Acquisition of furniture and fixture, supplies, vehicles and the necessary

equipment needed in the business

 Hiring of qualified employees

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

b. Market Research

Before starting the operation, the proponents shall first ensure the

marketability of the proposed project. This will be possible through the

gathering of information within its target locations. A structured

questionnaire shall be prepared and administered to a specific number of

respondents from the selected towns of Laguna. This will inform

proponents regarding the preference, comments and suggestions of the

respondents with regards to the establishment and concern a spa and

café. The result will offer a great help to the proponents in establishing a

vintage café and nature spa that will provide an extraordinary experience

to its customers.

c. Management during renovation

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

The proponents will rent a space in Sta. Cruz, Laguna for the proposed

business. After settling the legal requirements, the proponents would go

through the renovation.

The proponents will be responsible for ideas of renovation in lay-out

and design according to the concept they planned, checking of the water

system as well as the electrical wiring for safety.

d. Acquisition of Assets

 Furniture and Fixtures

 Machineries and equipment

 Supplies
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

1. Salaries and Wages

All employees shall receive their corresponding salaries or wagesas provided

in their contract of employment on every 15 th and last day of the month. Cut-off for

payroll calculation is every 10th and 25th of the month.

2. Overtime Pay

Employees may be required to work beyond their shift or even on rest days

due to work requirements. Every effort should be made to avoid unnecessary

overtime work and to keep work within reasonable limits. All overtime work should

have prior written approval from CEO/President. Every employee should file his/her

overtime slip within the pay-period to be compensated. When there is over slip, there

will be no pay for the overtime.

3. Cancelled Day-off/Holiday Pay

Every employee shall be provided with a rest period of twenty-four (24) hours

after every six (6) consecutive regular working days.

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

The following shall be considered regular holidays:

 New Year’s Day January 1

 Maundy Thursday movable date

 Good Friday movable date

 Araw ng Kagitingan April 9

 Labor Day May 1

 Independence Day June 12

 National Heroes Day Last Sunday of August

 Ramadan movable date

 Bonifacio Day November 30

 Christmas Day December 25

 Rizal Day December 30

The following should be considered as Special Holidays:

 All Saints Day November 1

 Last day of the year December 31

If an employee worked on a regular holiday he shall be compensated with an

additional equivalent to 100% of his salary. Work achieved on an employee’s rest days

or on a special holiday shall be paid an additional compensation of 20% of the regular

salary.

4. 13th Month Pay

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

The 13th month pay of an employee which shall be equivalent to 1/12 of the basic

salary earned within a year shall be given not later than the 24 th of December.

5. SSS/PHIC/HDMF Benefits

Benefits under the SSS/PHIC/HDMF law shall be granted in accordance with

applicable laws. Implementation of procedures relative to entitlement of the said

benefits should be done in accordance with the regulations to be promulgated by the

management.
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

III. ORGANIZATIONAL CHART

IV.

CEO/President

Financial Marketing Operations Human

Officer Officer Manager Resources

Utility
Cashier 1 & 2 kitchen staff
Personnel

Spa therapist Security Guard

Barista

Crew 1&2
FIGURE 2: ORGANIZATIONAL CHART
 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

V. Project Time Table

The project schedule is done through the use of a Gantt chart. This shows

the various activities with the corresponding time allocation. Every activity is

scheduled systematically and time is allotted sufficiently.

 Paete Science and Business College, Inc.
J. P. Rizal Street, Paete, Laguna

TABLE 2: PROJECT TIMETABLE

AP JU OC
ACTIVITY
MAR R MAY JUN L AUG SEP T NOV DEC
CONDUCTED FEASIBILITY STUDY
                   
REGISTRATION
                   
PUTTING UP EQUITY
                   
PLANT SITE ACQUISITION AND
RENOVATION OF THE BUILDING                    
MACHINERY AND SUPPLY
SELECTION                    
HIRING AND TRAINING PERSONNEL
                   
PROMOTION AND ADVERTISING
                   
START NORMAL OPERATION