CHAPTER I

EXECUTIVE SUMMARY

A Sari-Sari store, which is derived from the Filipino word for "variety," is a
neighborhood variety store in the Philippines featuring a wide range of everyday
items and consumer goods, often sold in small quantities, catering to the immediate
needs of the local community. For an example of this type of store, you may take a
look at our very own Evelyn Sari Sari Store found near Burauen North Central
School. The store's target market consists of residents seeking accessibility and
convenience for daily needs and slight household items. These customers tend to be
families, working people, and students who might not have time to drive far for
essentials.

Although demographics can vary, people value affordable goods packaged in

small quantities. Also, the store stocks food, for instance, and items specific to the
tastes of the neighborhood to satisfy specific community preferences or cultural
demands. The store's friendly and personalized service helps develop close
relationships with customers, generating return business.

However, these small businesses often struggle with limited capital, no formal
business training, and competition from larger chain stores and online marketplaces.
To overcome these obstacles and thrive in a competitive market, sari-sari store
owners must adopt innovative strategies and seek support to improve their
operations and increase revenue.

The purpose of this study is to examine how this project can give students a
chance to put their understanding of cost management, pricing strategies,
managerial economics, and customer analysis to use. Students can learn how they
can actively participate in daily operations by looking at the difficulties the store
owner can encounter and investigating the possible advantages for the students and
the establishment.

Furthermore, this comprehensive study delves into the complexities of

managing a small-scale enterprise, wherein practical applications and real-world
actions are a must. Researchers will explore various potential strategies to help
enhance Evelyn's Sari-Sari Store's competitiveness, sustainability, and community

1
engagement to further help them strive within the market. This includes identifying
opportunities for innovation, improving operational flow, and building a stronger bond
with both their suppliers and customers.

At the end of this journey, students will foster a partnership between the store
owners, yielding mutual benefits. By applying knowledge and practical expertise,
students gain invaluable experience, while Evelyn's Sari-Sari Store benefits from
modern solutions, enhanced efficiency, and sustained growth.

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 CHAPTER II
INTRODUCTION

The Sari-Sari store, known as a neighborhood variety store, operates on a

simple yet effective business model. It is a store in the Philippines that has long been
an integral part of Filipino culture and community. It offers a variety of consumer
goods, often in small quantities, catering to the immediate needs of the local
community. One such enterprise is Evelyn Sari Sari Store, a well-known business
located at La Purisima Street, Poblacion District 2, Burauen, Leyte. It is situated near
the Burauen North Central School. Evelyn Cinco owns and operates this
establishment as a sole proprietorship. Evelyn Sari-Sari Store, which opened on May
15, 2010, offers a wide selection of products such as basic foods, snacks,
beverages, toiletries, and other daily necessities. It is noted for its devotion to quality
service and customer satisfaction.

Evelyn Sari-Sari Store's target market consists of residents looking for

accessibility and convenience for everyday requirements and modest home items.
Families, working people, and students may not have the time to drive long
distances for necessities. These customers typically prefer to buy quick items such
as snacks, drinks, toiletries, and domestic goods, and they generally choose sari-sari
stores due to their convenience and proximity. The majority of consumers respect
the affordability of goods supplied in small quantities, even though income levels
may vary by demographic.

Numerous shops also offer local food and items tailored to the tastes of the
neighborhood to meet specific community preferences or cultural demands.
Customers form loyal relationships with sari-sari stores as a result of the warm and
personalized service, which encourages repeat business. Extended hours,
community involvement, and special promotions can help this business become
more appealing to its target audience.

Nevertheless, these small businesses often struggle with limited capital,

making it difficult to purchase sufficient inventory or expand their offerings.
Additionally, they may lack formal business training, limiting their ability to manage

3
finances, market their products effectively, and adapt to changing consumer
preferences. The rising cost of goods and services further erodes their profit
margins, while competition from larger retail stores and online marketplaces poses a
significant threat. To overcome these obstacles and thrive in a competitive market,
sari-sari store owners must adopt innovative strategies and seek support to improve
their operations and increase their revenue.

This study therefore aims to analyze how this specific project can provide an
opportunity for students to apply their knowledge in managerial economics, cost
management, pricing strategies, and customer analysis. By examining the
challenges that the store owner may face and exploring the potential benefits for
both the students and the store, we can understand how students can actively play
in day-to-day operations.

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 CHAPTER III
MARKET ANALYSIS

The Evelyn’s sari-sari store typically targets local, everyday consumers in

smaller, more rural neighborhoods. The primary demographic includes families,
working individuals, and budget-conscious consumers. Low-to-middle-class people
are the primary target of the store who don't have access to a larger store. These
customers prioritize convenience, affordability, and easy access to essential items.
They usually shop at this store, purchasing basic household products such as rice,
canned goods, snacks, soft drinks, and personal care items, often in smaller
quantities that suit their budget.

The location of the sari-sari store is situated in a rural area, which is a very
convenient location for the operation of the business. Meaning, it is reasonable to tap
the business’ desired customers. So, with that, the sari-sari store faces some
business competitors, and all stores have the same goods to offer. They have little to
no difference in prices since it is very risky to vary in price. It is within the same
compound/street location and has the same potential buyers.

Furthermore, this small, family-owned store offers a diverse range of

products, from basic food items like rice, noodles, and canned goods to household
supplies, beverages, and even over-the-counter medications. They cater to the
immediate needs of the local community, especially those who live in rural
communities with limited access to larger supermarkets. Evelyn’s sari-sari store
often operates on a credit system, allowing customers to buy goods on credit and
pay later, fostering strong social bonds within the community. Additionally, customers
suggested improving the store's cleanliness and organizing products more efficiently.
By addressing these concerns and incorporating customer feedback, we can
enhance the overall purchase experience and foster stronger customer loyalty.

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 CHAPTER IV
BUSINESS OPERATIONS ANALYSIS

Evelyn’s Sari-Sari store only uses manual inventory management. It utilizes a

list process when it comes to checking the inventory that needs filling. In purchasing
or ordering inventories, the owner lists first what product needs to stock up before
ordering from some supplier. The store does not have one source of inventory to
purchase, as the owner purchases products by herself from various stores. The
owner picked suppliers that offer the lowest price of products to sell them at
affordable prices to the consumer. Also, they don’t check inventories to see how
many were sold and left, as they believe that it is inconvenient for them with the
numerous inventories. Regarding their sales practices, they offered various products
at affordable prices. In addition, the owner does not record their sales per transaction
but counts only the total income daily. With their inevitable spoilage, the store uses
approaches such as lowering the prices in half to be sold and minimizing spoilage.
Hence, they use this approach for them not to dispose of such stale items easily.

The customer experience at Evelyn's Sari-Sari store is influenced by the

waiting times and how customers interact with the owners or staff. Evelyn's Sari-Sari
stores are small, neighborhood stores that focus on making purchasing quick and
easy. The layout is simple, with products like snacks, drinks, and toiletries placed
within easy reach. Although the layout works for convenience, the small space can
become crowded, especially during busy times, which can make the customer feel
uncomfortable buying the items they want.

Waiting times in Sari-Sari stores can depend on how many people are buying.
During busy hours, customers might have to wait longer because there is usually
only one person running the store. Evelyn's Sari-Sari store does not have a formal
line system, so waiting can be confusing and frustrating if many people are trying to
pay at the same time. However, since the store owners often know their regular
customers, they can speed up service by quickly recognizing what customers need.

6
 Every store, even Evelyn's store, has advantages and disadvantages. Several
strengths and limitations have been highlighted based on the information obtained
from the recent interview conducted:

STRENGTHS:

1. Convenience. Sari-sari stores allow customers to save time and effort by

providing basic commodities like food, beverages, and hygiene materials
available on the store's premises, increasing foot traffic and loyalty.
2. Adaptability. Retail places can react quickly to changing market dynamics
and alter their stock levels, which improves the customer experience.
3. Quick Turnover of Stock. Sari-sari continuously brings in new items in place
of the slow-moving ones to boost their turnover and enhance the efficiency of
the supply chain to make sales growth on the other fast-moving goods
amongst themselves.
4. Strengthen Social Connections. Personalized service and local community
members’ engagement enable sari-sari store owners to build strong
community relationships and ensure customer retention.
5. Cash Basis Transactions. Removing credits decreases risk exposure,
lowers commission fees for the credit facility, and increases liquidity.

WEAKNESS:

1. Limited Selection of Products. The selection of items is limited, which may

cause customers to go to other shops, reducing sales potential and lowering
competitiveness.
2. Significant Dependence on Foot Traffic. Changes in the weather and
holidays might prohibit customers from visiting the store, resulting in a loss in
sales revenue.
3. Intense Competition. Due to the stiff competition, it becomes a challenge for
the business to make clear differentiation and price the products affordably,
while at the same time being focused on other innovative aspects of the
business.

7
4. Security Issues. Security vulnerabilities expose businesses to the danger of
theft and data breaches. These risks jeopardize a business's assets,
consumer confidence, and reputation, thereby subjecting it to financial losses
and lawsuits.
5. Risk of Economic Downturns. Unemployment and decreased customer
spending may lower consumer purchasing power and corporate revenue,
ultimately leading to bankruptcy.

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 CHAPTER V

FINANCIAL ANALYSIS

9
 CHAPTER VI

IMPROVEMENT RECOMMENDATION

I. Inventory and Stock Management

To optimize inventory levels and minimize stockouts in your sari-sari store,

implement a systematic approach. Begin by conducting daily stock checks to
identify low-stock items and replenish them promptly. Prioritize stocking popular
items like snacks, drinks, and basic household goods to meet customer demand.
To avoid tying up capital, limit the variety of slower-moving items and purchase
them in smaller quantities. Regularly inspect your inventory for expired products
to prevent losses and maintain product quality. Pay close attention to customer
purchasing patterns to identify trends and adjust your stock accordingly. By
following these practices, you can improve inventory management, reduce waste,
and enhance your store's overall profitability.

II. Cost Management Strategies

Separating personal and business expenses. The owner separates their

expenses from the business by not treating their sari-sari store as if it’s a pantry.
They strictly avoid these kinds of mistakes in their business operation by making
sure that they separate their groceries from the store goods.

III. Pricing Adjustments

Changing the prices of Evelyn's items or services helps to maximize the sari-sari
store's earnings. By altering the prices, the store may be able to charge greater
prices while capturing more value from its customers. Pricing adjustments also
serve to distinguish Evelyn's sari-sari store from its competitors. If its competitors
drop their prices, Evelyn must decide whether to match, undercut, or retain their
pricing while emphasizing the store's quality or service.

10
IV. Customer Experience Enhancements

Evelyn should organize the store's display items so customers can easily find
what they need. Products that are similar or belong to the same category, like
snacks, drinks, soap, and toiletries, should be placed together in different areas
to keep the store neat. Also, the prices should be easy to see on each product so
customers don't have to search for them.

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 CHAPTER VII

PROPOSED ACTION PLAN

I. Timeline for Implementation

Short-term (0-3 months)

 Start daily stock checks. Efficient checking of stock levels daily will
ensure that the owner can be able to know what are the items that are
most demanded by the customers, these will also help to reduce the
likelihood of missed sales opportunities and keep the right amount of stock
to avoid overstocking.
 Separate personal and business expenses. Keeping personal expenses
separate from business is crucial for a Sari-sari store to boost profitability.
This will avoid the depletion of resources needed for the operation and
inventory.
 Organize store displays and label prices. A well-organized and visually
appealing arrangement of goods/products with attached prices can
capture customer attention and satisfaction as it makes it easier for them
to find what they need to purchase.

Medium-term (3-6 months)

 Adjust pricing based on customer demand and competitor prices.

Customers’ intentions to purchase a product are heavily influenced by their
pricing perception. By these, the store owner will purchase wholesale or
bundles to not compromise their pricing. Setting prices that correspond to
customers' price choices considering that the price of the required product
will justify.
 Monitor customer purchasing patterns and adjust stock accordingly.
Knowing customers' preferences and monitoring demanded goods in the
store will help the owner to restock based on demand and optimize the
order quantities.

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 Long-term (6-12 months)

 Regularly review and refine inventory management. Make sure to

stock levels and adjust inventory practices to avoid running out of products
or overstocking, which is very crucial to the store to have well-organized
management to avoid any future implications that can ruin Evelyn's Sari-
Sari store business in the long run. By consistently adjusting inventory
practices, the owner can run the business more smoothly and avoid
potential problems.
 Enhance customer experience. By seeking and actively communicating
with the customer in asking for their feedback to better improve various
aspects of the store. Regularly assess or adjust the store layout to ensure
it's welcoming and comfortable to buy items. This is just a small step but
can really have a big impact on the customers’ preferences, build their
trust and loyalty, and encourage them to return frequently.

II. Resource Requirements

 Financial budget for stock replenishment. The owner should allocate
funds specifically for restocking popular products as they sell out. This
ensures the store remains well stocked with in-demand items and avoids
running out of stock at unexpected times. Having a budget for restocking
helps the owner manage the money effectively.
 Funds for display materials. The budget for display materials like
shelves, price tags, and other items to help organize and display your
products neatly in the store. This could include display stands, baskets, or
signs for pricing. The goal is to create a clean, attractive layout that makes
the products easy to see and find items which can improve the overall
quality experience of the customer.
 Human (Manpower). The owner will dedicate time daily to check
inventory and arrange products on shelves to maintain a well-organized
and appealing store. They may also handle other tasks like advertising or
managing basic finances when needed.

13
  Inventory Tracking. Using a notebook or spreadsheet helps keep track of
what’s selling and what needs to be restocked.
 Display Materials (Shelves, Price Tags). Get some shelves and clear
price tags to keep the products organized. This makes it easier for
customers to find what they need.

III. Team Assignments

 The owner does it all. Since it’s a one-person business, the owner will
handle everything, from managing inventory to helping customers. They
need to keep everything in balance to make sure the store runs smoothly.

14
 CHAPTER VIII

EXPECTED OUTCOMES

I. Key Performance Indicators

II. Projected Benefits

a. Inventory and Stock Management. By implementing a systematic approach
to inventory and stock management, the sari-sari store can significantly
improve its overall performance. Regularly checking for expired products can
prevent losses and maintain product quality. Prioritizing popular items and
limiting slower-moving ones can optimize your inventory and reduce capital
tied up in stock. This streamlined approach will not only save you time and
effort but also enhance your store's efficiency. By ensuring consistent
availability of products, you can attract more customers, boost sales, and
improve customer satisfaction. Ultimately, these improvements will contribute
to increased profitability and long-term success for the sari-sari store.
b. Cost Management Strategies. Separating personal expenses from business
will help to make the process accurate when unrelated or personal expenses
aren't there to confuse. Keeping personal and business finances separate can
help prevent the use of business funds for personal needs, which can deplete
resources for inventory and operations. It can also make it easier to track
operational costs, sales, and profits. This can help identify which products are
most profitable and where costs can be cut.
c. Pricing Adjustments. A pricing adjustment is any change to the initial price
of a product or service. Making pricing adjustments is one of the most
significant components of corporate revenue and profitability management.
The price of a good or service has a huge impact on whether or not a
customer would appreciate the product and buy it. As a result, altered pricing
could potentially assist Evelyn's sari-sari business in attracting price-sensitive

15
 customers while also encouraging loyalty. Furthermore, by carefully altering
product prices, the store may maximize advantages, reduce risks, and
preserve a competitive advantage.
d. Customer Experience Enhancements. By arranging the store’s products
and presenting them clearly, Evelyn’s Sari-Sari store can enjoy several
advantages. First, customers will have an easier time locating what they need,
enhancing their buying experience and making it more efficient. Displaying
clear prices on products will also enable customers to make quicker
decisions, potentially resulting in more purchases. A neat and organized store
creates a welcoming environment that can draw in more customers and
encourage them to spend more time buying. Additionally, it will strengthen the
bond between the owner and the customer.

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 CHAPTER IX

DOCUMENTATION AND EVIDENCE OF WORK

This comprehensive documentation provides a detailed record of the students'

business plan improvement journey, highlighting data-driven insights, best practices,
actionable recommendations, accomplishments, and areas for future development.

17
 CHAPTER X

REFLECTION AND CONCLUSION

I. Individual Reflections
 Diang, M.E.: "This improvement plan we've conducted for a small sari-sari
store got me both stressed and, at the same time, excited about the
knowledge I'll carry along the way. It lit a fire in me, fueling and shaping my
view on how businesses, even small ones, affect the community. This
experience sharpened my abilities in terms of planning, communication, and
coming up with clever solutions to problems. Seeing real change happen
made me feel good and pushed me to keep making a difference. Also, this
invaluable experience showed me how important it is to work together,
bounce back from setbacks, and think outside the box. I can now confidently
say that this journey imparted me with valuable life lessons I can keep
creating meaningful changes that last."

 Dranciang, K.: "A visit to the sari-sari store demonstrated the micro-
entrepreneur’s determination and resourcefulness. The entrepreneur supplies
the community with necessities while managing inventory and interactions
with customers with exceptional flexibility, even if they operate on narrow
profit margins. The store's importance in Filipino culture is embodied by this
spirit of entrepreneurship.

I was able to study and comprehend concepts by examining the store's

present state and pinpointing areas that needed improvement. Evelyn's sari-
sari stores are admired for her business spirit. Sari-sari stores exhibit
resourcefulness and flexibility in their innovative approaches to customer
service and inventory management. They assist local suppliers, encourage
local manufacturing, and provide low-income people with affordable costs.
Sari-sari establishments serve as emblems of Filipino resourcefulness and
independence, emphasizing ideals that are focused on the community. My

18
 main conclusions are that it's critical to comprehend customer desires, handle
inventories well, and establish connections."

 Fumar, D.: "Sari-sari stores can be found all across the Philippines, acting as
convenient neighborhood stores that suit our daily requirements. Reflecting on
our proposed modifications, it is clear that a comprehensive approach
combining conventional practices with innovative solutions is vital to Evelyn's
sari-sari store's long-term success in today's competitive market.
Furthermore, by adding strategic planning and innovation while continuously
analyzing and improving business practices, Evelyn will surely draw new
customers to her store and increase profitability."

 Gadiasa, L.J.: "Sari-sari stores offer immediate access to essential goods to

all consumers, specifically in rural areas. These papers will not just assess
those challenges that the Evelyn Sari Sari store might face but also enhance
its ability to operate productively and further refine strategies by implementing
this business improvement plan.

The Sari-sari store is classified as a small business, and we can't deny that
some aspects of it need to be improved, particularly in its inventory
management. These challenges are very common for a sari-sari store
because of its limited space. With the help of these business improvement
plans, it will ensure that Evelyn Sari Sari Store transforms its operation
efficiently and effectively.

Implementing a BIP will serve as a guide for store owners to have a clear and
systematized strategic plan that can yield long-term benefits. Having this plan,
the owner must practice a proactive approach, as it highlights customer
satisfaction and keeps the store competitive and sustainable. Investing time
and effort in executing a comprehensive BIP will surely lead to the resilience
of Evelyn Sari-Sari Store."

19
 Gatela, J.: “Creating this business improvement plan for the sari-sari store
has been a valuable learning experience. It has allowed me to apply the
business concepts I've learned practically. By analyzing the store's current
operations and identifying areas for improvement, I was able to develop a
strategic plan that focuses on customer support satisfaction, efficient
inventory management, and increased sales. Through this process, I've
gained a deeper understanding of the challenges and opportunities faced by
small businesses. I'm excited to see how the implementation of this plan will
positively impact the sari-sari store and its customers.”

 Gomez, R.: “Evelyn’s and other small sari-sari stores play a significant role in
many communities. Although we may not be aware of how important they are,
especially in our daily lives, it is undeniable that they provide for our basic
needs. These small retail stores, which are frequently run by families, offer
everyday items to locals. Despite their small size, running a sari-sari store is
difficult; owners must find ways to improve their business, increase sales, and
satisfy their customers.

This paper will help understand why a business improvement plan is

important for sari-sari stores for a variety of reasons, including: Improving
Operations, Choosing the Right Products, Managing Finances, Attracting
More Customers, Developing Better Supplier Relationships, and Planning for
Future Growth.

All things considered, this company improvement approach may significantly

impact tiny sari-sari retailers. By concentrating on enhancing operations,
handling money, and drawing in consumers, a business improvement plan
(BIP) assists store owners in operating their enterprises more successfully
and efficiently. It also offers a path forward for expansion and achievement.
Having a business improvement plan is a useful tool for small sari-sari store
owners like Evelyn, who can use it to strengthen their business and better
serve their communities.”

20
 Natividad, C.: "People establish a sari-sari store to enable their community to
get such needs close by. In this case study, it is essential to assist a sari-sari
store in enhancing some aspects of its operations by creating a business
improvement plan. As we exchange ideas and opinions, the store has to
make significant improvements, particularly in the areas of inventory
management and price structure. Moreover, I came to see that creative
marketing, effective operations, and strategic planning can have a big impact
on even small businesses. These micro-retailers can increase profitability,
improve customer satisfaction, and promote sustainability by tackling issues
like cash flow and inventory management. Thus, these small businesses are
essential to local economic development since putting a business
improvement plan into action not only guarantees business success but also
enhances community well-being. Furthermore, my critical thinking, problem-
solving, and strategic planning abilities were refined during the process of
creating a business improvement plan. I gained an appreciation for small
business owners' tenacity and flexibility as well as the importance of tailoring
solutions to the specific needs of local markets."

 Quiminales, J.S.: "Filipino communities deeply value sari-sari stores, not just
as convenient shops but as symbols of accessibility, affordability, and a sense
of community. As I have analyzed Evelyn’s sari-sari store, it’s clear to me that
achieving long-term growth and sustainability means balancing innovation
with preserving tradition is what makes this business special. Truly, even the
smallest ventures can be transformed with thoughtful planning and creative
marketing. Thus, by addressing key challenges such as pricing, cash flow,
and inventory management, businesses can not only improve profitability but
also enhance customer satisfaction. Furthermore, this highlights how
strategies improve the services of the entity, no matter how small, can ripple
out to contribute to economic growth. I hold immense respect for the
resilience and adaptability of small business owners—their dedication is truly
inspiring. Ultimately, this reflection reminds me that even the humblest
enterprises can create meaningful change, both for individuals and the
broader community, showing how small adjustments can lead to a big
impact."
21
  Vanzuela, R.: "In making a business improvement plan for a sari-sari store, I
learned how important it is to see what is working well and what needs
improvement. I realized that focusing on customer happiness, managing stock
properly, and reducing costs can help the business grow. This process
showed me that small changes can lead to better service, more sales, and a
stronger business in the future. This is also highly relevant to Ms. Evelyn's
Sari-Sari store's business management."

II. Overall Summary

The cash collection report sheet consolidates various financial data to provide a
comprehensive overview of the store’s performance. This helps the store assess its
profitability and decide whether it needs to use personal funds or just its earnings to
restock. The report is an important tool for better financial management and
planning, allowing the store to track its cash flow more accurately and bringing a
clearer picture of the cash ins and outs of the business. This improvement ensures
that the store can make informed decisions about reinvestment, sustainability, and
growth, ultimately contributing to long-term success. By keeping a close eye on cash
flow, Evelyn Sari-Sari Store can improve its financial stability and continue serving its
community effectively.

22
APPENDICES

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REFERENCES

10 Tips to Have a Successful Sari Sari Store Business 2024. (2024, October 1).

Radiowealth Finance Company.[Link]

successful-sari-sari-store/

Experts, D. (2024, July 18). Pricing Adjustment. DealHub.

[Link]

Robert. (2024, November 11). Business Improvement Plan: A step-by-step guide.

Leading Business Improvement.

[Link]

by-step-guide/

Studocu. (2024, December 5). [Solved] Make a unique case study analysis of small

sarisari store - Bachelor of Science in Business Administration - Studocu.

[Link]

case-study-analysis-of-small-sari-sari-store#acceptedAnswer

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