Chapter 4
Management Study
This chapter presents the management aspect of the proposed establishment, its
manpower level requirement, organization structure, and identification of duties and
responsibilities.
I. Business Organization
Form of Ownership
The business will adopt a Limited Partnership ownership structure, where certain
partners contribute only financially and have their liability limited to their investment
amount. This structure requires at least one general partner, who will assume unlimited
liability and manage the business's daily operations, while the limited partners will remain
uninvolved in day-to-day activities.
A formal partnership agreement will be established to outline the terms and
conditions agreed upon by all partners. This agreement will detail decision-making
processes, profit and loss sharing, conflict resolution methods, individual responsibilities,
and procedures for business closure if necessary. By providing clear guidelines on
operation and governance, the partnership agreement ensures alignment and
transparency among partners. The general partner will oversee all business transactions
and operations, while the remaining partners, known as "silent partners," will contribute
financially without participating in management or having voting rights.
Mission Statement
At Dessert Heaven, our mission is to bring joy to our customers through delicious
and high-quality mango floats. We are committed to using fresh ingredients and delivering
exceptional customer service in a welcoming environment. Our goal is to exceed
expectations by offering a delightful treat that creates memorable experiences, all while
maintaining a sustainable and community-focused approach in everything we do.
Vision Statement
Our vision is to become the leading destination for mango float lovers, renowned
for our dedication to quality, innovation, and exceptional customer experience. We aspire
to expand our reach, setting new standards in the dessert industry, while fostering a
positive impact on our community and environment.
Core Values
At Dessert Heaven, our core values define who we are and guide everything we
do.
• Quality: We are dedicated to using only the finest ingredients and maintaining
rigorous standards to ensure every mango float meets our high-quality
expectations.
• Customer Satisfaction: Our customers are central to our mission. We aim to
provide exceptional service and create memorable experiences go beyond their
expectations.
• Integrity: We operate with honesty, transparency, and fairness, building trust and
respect with our customers, partners, and community.
• Sustainability: We prioritize environmental responsibility by implementing eco-
friendly practices and promoting sustainability throughout our operations.
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II. Internal Organizational Structure
Figure 6
Organizational Structure
General Manager
(General Partner)
Production Staff Storekeeper
Figure 3 shows the organizational structure of the proposed business. The
proponents have designed the organizational structure which defines the functional
reporting of each personnel considering effective management control, division of labor,
and work efficiency.
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III. Staffing Requirements
Duties and Responsibilities
The proponent would like to recommend the following qualifications and functions
for the entrepreneur and its staff.
Table 23
Staffing
No. Of Positions Position Qualification Job Description
Description Requirements
1. General Manager College Manages the
graduate overall
Has basic operation of the
knowledge in business.
accounting Supervises the
storekeeper.
Develops and
establish store
policies and
procedures.
Manages the
social media
page of the
business
2. Storekeeper High school Takes
graduate customer’s
Basic orders
cashiering skills Monitors
inventory levels
to prevent
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Basic shortages or
knowledge in excesses
recording Receives,
Can be trusted inspects, and
Customer organizes
friendly deliveries
3. Production Laborer High School Prepares
level ingredients,
Physically fit mixing, and
Has basic assembles
understanding product
of hygiene according to
practices and recipes.
safety. Maintains
cleanliness and
organization in
the production
area.
Handles
Packing and
labeling.
Ensures Quality
control.
Reports any
issues or
equipment
malfunction.
The business operations will commence daily at 9:00 AM and continue until 7:00
PM, operating seven days a week from Monday to Sunday. This schedule is designed to
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provide convenient access to the product for a wide range of customers, accommodating
both weekday and weekend shoppers. By maintaining consistent hours throughout the
week, the business aims to maximize customer engagement and meet the varying needs
of its clientele.
Moreover, the business will establish a primary culture centered around customer
care and satisfaction. Employees and staff will be trained to fully understand and adhere
to this focus, ensuring that every customer interaction is handled with the utmost attention
and respect. To maintain high standards of service, regular evaluations will be conducted
to assess performance and provide feedback, reinforcing the commitment to delivering
exceptional customer experiences.
IV. Compensation and Benefits
Table 24
Salaries and Wages
Particulars Number Rate per month Total Amount / year
General Manager 1 15,000.00 180.000.00
Storekeeper 1 12,025.00 144,300.00
Production Laborer 1 12,025.00 144,300.00
Total 3 39,050.00 468,600.00
The business will have three manpower: one production staff, one storekeeper,
and one general manager. The storekeeper and production laborer will receive a
minimum wage of P481.00 per day. This is based on the established minimum wage rate
in the Davao Region as mandated by the Wage Order No. RBXI-22. While the general
manager will receive P15,000.00 per month of salary.
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Table 25
Projected Salaries and Wages
Year Total Amount
1 468,600.00
2 515,460.00
3 567,006.00
Table 25 shows the projected salaries and wages for the first three years of the
business. The proponents assumed that there would be 10% increase every year.
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Fringe Benefits
The business will incur expenses related to the fringe benefits of its employees.
These are the employer’s share in the SSS contribution, Philhealth contribution, and Pag-
ibig contributions.
Table 26
Fringe Benefits
Particulars SSS Philhealth Pag-ibig Total
General Manager 1,230.00 375.00 200.00 1,805.00
Storekeeper 970.00 300.63 200.00 1,470.63
Production Staff 970.00 300.63 200.00 1,470.63
Total 3,170.00 976.25 600.00 4,746.25
Table 26 presents the details of fringe benefits expenses for a month.
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Table 27
Projected Fringe Benefits
Year Total Amount
1 56,955.00
2 62,650.50
3 68,915.55
Table 27 presents the projected fringe benefits expenses for the first three years
of the business. The proponents assumed that there would be 10% increase every year.
V. Conclusion
The management structure of the business will take to ensure utmost efficiency in
operations. The business entity chosen by the proponents is a Limited Partnership is the
least complex and the least expensive. It requires less record-keeping and less reporting
than other structures. In this setup, the General Partner procure investors while obtaining
control of the business. The Limited Partners, on the other hand, can invest in the
business without being personally held liable. The organization structure has the General
Partner as the overall manager who is actively involved with managing the business
assisted by a storekeeper and another involved in the production process. The General
partner creates a set of core values for the principles to use in managing the performance
of the group. According to the development schedule of the project, the business will be
started after sixteen months.
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