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BUSINESS BACKROUND

“New SOCSARGEN Grill & Seafood Restaurant” is under in the food industry
which offers products from raw materials to finished products through processing. Most of the
products that are being offered are more on seafoods or made of seafoods such us fish (Tuna,
maya-maya and blue marlin.), squid, shrimp, scallops, and sarad. But they also offer chicken
(Garlic chicken, mandarin chicken, buttered chicken, fried chicken and chicken tinola.), pork
(grilled and sizzling pork belly and pork chop), Pork sinigang, bicol express made of pork, and
many more.

“New SOCSARGEN Grill & Seafood Restaurant” is a corporation type of business


organization (VAQ Corporation) which is owned and managed by Quintero Family (Vicente D.
Quintero, Neil D. Quintero, Rosemarie Q. Morellos). It is currently located and operating at 302
P. Burgos St. Tacloban City, for almost 16 years now.

The Restaurant was established on June 2001 as a “SOCSARGEN Grill & Seafood
Restaurant” and managed by Mr. Willie Lico who is a sole proprietor. In the year 2005, ownership
and management were transferred to Quintero Family who is the owner of the land, were the
establishment is currently located. The idea of this restaurant business came from Mr. Willie Lico
who is the original owner of the restaurant and the name itself was inspired by Region 12
(SOCCSKARGEN-SOuth Cotabato, Cotabato City, North Cotabato, Sultan kudarat, SARangani
and GENeral Santos City) since he came from one of the provinces of region 12, but he makes it
different by changing the spelling from SOCCSKARGEN to SOCSARGEN to have its distinctive
name.

The reason why the name of the business changed from “SOCSARGEN Grill &
Seafood Restaurant” to “New SOCSARGEN Grill & Seafood Restaurant” it’s because the original
owner of the business does not have enough knowledge to manage the restaurant, that’s why it
results to bankruptcy and the business only lasts for almost 4 years. The current owner of the
business decides to continue the operation of the business since they are the owner of the land and
they found out that the restaurant would be helpful to them to extend their businesses. To continue
the operation of the business in the year 2005, the current owner of the business invests with a
starting capital of P1,500,000 to suffice the needed materials and stuff for the operation. The

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business is engaged in food processing by combining raw materials or raw food ingredients to
produce marketable food products that can be easily prepared and served to the customer, since
the business belongs to food industry. The business offers different kinds of dish of seafood like
shrimp, squid, fish and etc. and grilled products also like pork, fish and squid. The business has 13
employees which is enough to perform the daily task for the operation of the business. The business
is open from 6am to 10am for the breakfast of the guests from the hotel, since ROSVENIL hotel
is one of the businesses of the owner. They also allow other customers from outside to come and
have their breakfast, but they just have to pay for the amount of P220 for their meal. After the
breakfast the business will continue to operate from 10am to 2pm and 6pm to 10pm. The business
also offers reservations for catering for the amount P250 per head and reservations for dine in to
assure some seats since the restaurant has only limited space for their customers. The business gets
some of the supplies of seafood from Gensan like Tuna belly fish, bihod, bagaybay, and guindara
fish. but they assure that the purchased products from gensan is still fresh even though it would
take a day before it arrived here in Tacloban, because the products are still frozen to maintain its
freshness. The food in NEW SOCSARGEN Grill & Seafood Restaurant is affordable enough for
its target market like students, families, couples, foreigners, tourists or even individuals will be
contented for the price of each dish because most of their dish are good for 3-4 persons, so they
assure that the price will be justifiable enough for their target market.

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OFFERED PRODUCTS

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ENVIRONMENTAL SCANNING

GENERAL ENVIRONMENT

A. Political-legal Factor
-The business operates legally, in a way of complying all the necessary permits like
Business Permit, Mayor’s Permit, and Certificate of Registration to assure that New
SOCSARGEN Grill & Seafood Restaurant is legal. And New SOCSARGEN Grill &
Seafood Restaurant always follow the rules and regulations that is being implemented by
the Government for the business to continue its operation.

B. Economic Factor
-New SOCSARGEN Grill & Seafood Restaurant helps the economy by way of complying
with all the necessary or required permits and paying of taxes that can be used as a fund
for the government expenditures. And helps to provide employment to the people of
Tacloban, City for them to support their daily needs or basic necessities.

C. Sociocultural Factor
- New SOCSARGEN Grill & Seafood Restaurant knows how to deal with different kinds
of people, their origin, culture and beliefs in order for them to meet the expectation of
their customers or even employees in the organization. And New SOCSARGEN Grill &
Seafood Restaurant is open to adapt new changes that is happening in the society just to
satisfy the needs and wants of their customers.

D. Technology Factor
-Technology has a huge part in the daily operation of New SOCSARGEN Grill & Seafood
Restaurant, it makes the business works in an effective and efficient way by helping its
employees to be more productive and helps the business to be competitive enough to
compete in the market. And it makes New SOCSARGEN Grill & Seafood Restaurant more
progressive compared to other competitors.

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TASK ENVIRONMENT

A. Customers
-Customers is consider as a life blood of the business. In order to maintain a good
relationship with the customers, New SOCSARGEN Grill & Seafood Restaurant make sure
that their customers are always satisfied with the services and products that they offer. And
to those who are new to try their products and services, they make sure that the image of
the business to the customer is acceptable enough for them to keep on patronizing the
business or to continue to patronize the business.

B. Suppliers
-Suppliers has something to do with the business, it helps the business works by supplying
the needed materials for it to continue to operate. Having a fix suppliers are helpful to the
business, because suppliers made sure that they supply the needed materials for the
business in a right time with a good quality of materials. And luckily “New SOCSARGEN
Grill & Seafood Restaurant” has a loyal Suppliers that keep on supplying them.

C. Competitors
-New SOCSARGEN Grill & Seafood Restaurant has a lot of competitors here in Tacloban
CITY, considering that they belong to the food industry. For them to be competitive enough
to compete to the market, they always think of what’s best for their customers and what
are the best way to make the business more productive and progressive, instead of focusing
on how to deal with their competitors.

D. Government
-The role of government to the business is they make sure that New SOCSARGEN Grill
& Seafood Restaurant is legally operated through paying taxes and necessary permits and
should follow the rules and regulations that are being implemented by the government.
There are also instances that some government agencies offered free trainings and seminars
to the employees for them to enhance their skills and knowledge about the field that they
belong to.

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INDUSTRY ANALYSIS

Figure 2

Five Porters Model

Threat of
new
Entrants
(High)

Bargaining Bargaining
Power of Rivalry Power of
Suppliers Buyers
(High) (High) (High)

Threat from
substitute
(Low)

 Rivalry among existing firms with the same industry (High)


- We all know that here in Tacloban City, rivalry among existing firms in the food industry
is high, considering that most of the establishments here in Tacloban City offers food which
is the no.1 basic needs of the people.

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 Threat of new entrants of competitors (High)
- New entrants of competitors Has a negative impact to the business, it implicates that the
effect is high to the point that it will lessen the market share of the business to the industry.
It decreases the no. of customers to the part of the business that sometimes results to
bankruptcy, when the business is no longer profitable to continue its operation.
 Bargaining power of buyers or customers (High)
- The business is already known for almost 16 years or more than a decade and they already
build a good relationship with their loyal customers that keeps on patronizing their products
till now, that results to high level of effectivity to the business. And for those walk-ins or
for those who is new to try to patronize their products, the ability to bargain the products
is not necessarily needed due to the fixed prices of meal.
 Bargaining power of suppliers (High)
- New SOCSARGEN Grill & Seafood Restaurant has a high level of bargaining power of
suppliers, because they have a fixed supplier from Gensan that has already been there for
them for how many years already. And some of their suppliers here in Tacloban, City has
enough supplies to supply their needed materials for the operation of the business.
 Threat of substitutes or substitution (Low)
- Threat of substitutes or substitution is Low, because, New SOCSARGEN Grill & Seafood
Restaurant offers different kinds of dish that is more on seafood and they offer a dish that
is made from pork, beef and chicken, and the business offers also different kinds of grilled
products and noodles or “Pancit” like pancit canton, bihon, sotanghon and lomi, So
tendency the customers has a lot of choices on their menu without thinking to go to other
establishments or without looking for another restaurant just to buy another dish or food
for substitute.

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ORGANIZATIONAL ANALYSIS

A. Organizational Structure

Figure 1
Organizational Chart

Kathleen A. Quintero
Owner/Manager

Rosemarie Q. Morellos
Marilyn T. Gagala
Operations Supervisor Assistant Supervisor

Camilo Jomoc Pabling Yntong Joey Lumen Jovel Camero


Ronnel Jomoc Arman Binghoy
Assistant
Head Chef Chef Chef/Chopper
Head
Waiter/cashier
Waiter Waiter

Luis Dayao Ricky Ariola Raulito Dela Cruz Jeremy Bisnar Paul R. Rondina
Chopper Griller Dispatcher Washer Washer

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 Personnel Job Description and Specification

The table below shows the job description and specification of the different
personnel necessary for the development and operations of the business.

Table 1

Job Description and Specification

No. of Personnel Position Job Description Job Specification

Owner;
In-charged in overall knowledgeable of the
supervision and entire activities of the
1 Owner-Manager management of the business.
business.

1 Operations Assists the Owner- Female;


Supervisor Manager in knowledgeable and
supervising the experienced in the
various activities of operations of the
the business. business.

Assists the Assistant Female;


Supervisor in
supervising the At least an HRM
Assistant Supervisor various activities of graduate or a
1 graduate of Bus.
the business. And the
one who handles the Administration
day-to-day related course who is
transaction of the knowledgeable in the
business and its operation of the
employees. business.

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In-charged of all the The one who is
decision making in graduate in culinary
1 Head Chef various activities in or at least a well-
the kitchen. trained cook and has
an experienced.

Assists the Head Chef At least a well-trained


in all the decision cook and has an
1 Chef making in various experienced.
activities in the
kitchen.

The one who is At least a well-trained


assigned to help or cook and has an
1 Chef/Chopper assist the chopper and experienced of being
assist the chef. a chopper.

In-charged in At least a well-trained


preparing raw chopper and has a
1 Chopper materials that is background in
needed before cooking.
cooking.

The one who is A hard working


assigned to grill person, and knows
1 Griller grilled food that is how to grill.
being offered in the
restaurant.

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The one who is In- At least a high school
charged in inspecting graduate and
1 Dispatcher the food before it will Someone who has no
be served. health issues.

In-charged in
collecting and
recording payments A graduate in HRM
that is being done in a course with pleasing
1 Head Waiter/Cashier personality and
day-to-day
transaction. The one someone who is
who is in-charged in trustworthy.
some customer
concern.

A graduate in HRM
course or at least a
Assigned to serve the graduate in any
food that is being vocational course that
2 Waiter prepared for the is related to the
customer. And they business. With
are the one who is in- pleasing personality,
charged for dish out. hardworking and
trustworthy.

Assigned to wash all


the dishes and
2 Washer utensils that are being Someone who is
used in the restaurant. hardworking and
And also in-charged trustworthy.
in getting some stuff
or supply of raw
materials for cooking
in the pantry room.

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COMPENSATION STRUCTURE

New SOCSARGEN Grill & Seafood Restaurant

DEDUCTIONS
13th
No. of Daily Monthly Annual
POSITION SSS Phil Total Month
Personnel wage Salary Pag-ibig Net Pay Salary
Health Deduction Pay
ER (6%) ER (4%)

Operations 1 P 500 P 15,000 P 900 P 600 P 100 P 100 P 1,700 P 13,300 P 15,000 P 174,600
Supervisor
Assistant 1 450 13,500 810 540 100 100 1,550 11,950 13,500 156,900
Supervisor
Head Chef 1 420 12,600 756 504 100 100 1,460 11,140 12,600 146,280
Chef 1 410 12,300 738 492 100 100 1,430 10,870 12,300 142,740
Assistant 1 400 12,000 720 480 100 100 1,400 10,600 12,000 139,200
Chef/Chopper
Head 1 320 9,600 576 384 100 100 1,160 8,440 9,600 110,880
Waiter/Cashier
Waiter 2 590 17,700 1,062 708 200 200 2,170 15,530 17,700 204,060
Chopper 1 350 10,500 630 420 100 100 1,250 9,250 10,500 121,500
Griller 1 310 9,300 558 372 100 100 1,130 8,170 9,300 107,340
Dispatcher 1 295 8,850 531 354 100 100 1,085 7,765 8,850 102,030
Washer 2 590 17,700 1,062 708 200 200 2,170 15,530 17,700 204,060
TOTAL P 4,635 P 139,050 P 8,343 P 5,562 P 1,300 P 1,300 P 16,505 P 122,545 P 139,050 P 1,609,590

The table above shows the compensation structure of New SOCSARGEN Grill & Seafood Restaurant. The annual salary amounts to
1,609,590. The working hours of the employees will not be less than 8 hours per day. All employees are registered with the government agencies
specifically Phil health, Pag-Ibig and SSS.

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B. Culture
-Each one of us came from a different culture like our beliefs and values in life, and it
makes the person unique in his/her own way, the same with the business organization. New
SOCSARGEN Grill & Seafood Restaurant keeps on maintaining and following the culture
that is being followed and being used by the past years and they make sure that as time
goes by, it will be followed by the young generation to maintain and preserved its culture
without eliminating the effect of adapting new changes that is happening in the society.

C. Resources
-When it comes to Financial Resources, “New SOCSARGEN Grill & Seafood
Restaurant” has unlimited resources, in a way that their family came from a wealthy family
and known for being a business minded family.
-Their family owns different land areas here in Tacloban City, so when it comes to
expansion of the business for future purposes, it won’t be their problem anymore.
-The business has enough employees to work for the business which can perform well
their duties and responsibility.

D. Skills
-In every business organization skills are one of the most important thing should every
employees possessed. New SOCSARGEN Grill & Seafood Restaurant has a lot of
employees who are skilled enough to perform their task in their respective field or area in
the business organization or even in the field or area that they are not assigned to performed
with, they will be given a chance to perform and to be trained in some areas for them to be
skilled for future purposes or for in case of emergency like if someone is absent, then
someone can do the task for replacement so that the business can continue its operation.
E. Competencies
-Aside from skilled employees that New SOCSARGEN Grill & Seafood Restaurant
possessed, they make sure that they are still competitive enough to compete in the market
by continuing to upgrade their products and services for the customers to continue to
patronize the business, since New SOCSARGEN Grill & Seafood Restaurant has a lot of
competitors here in Tacloban.

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ENVIRONMENTAL/SWOT ANALYSIS

INTERNAL

A. Strengths:

Organization strength refers to the edges of the business against its competitors.
They have the skills that by virtue of being rare are costly to imitate like efficient
management skills among many other possibilities. “New SOCSARGEN Grill &
Seafood Restaurant” has its internal analysis of organization strength and being
discussed as follows:

1. Quality and Affordability of the Product


The business is known for its good quality of seafood in Tacloban City. They
prioritize quality more than anything else. They make sure that the products are
being processed accordingly well before it is served to the customer. In fact, most
of the products that are being offered is good for 3-4 persons so that their customer
will be contented enough for the price of each dish and they make sure that the
quality of the products won’t be compromised.
2. Competent Management

The owner-manager has highly developed management skills, since she is also
working in PSBANK as a manager. Aside from being knowledgeable in this kind of
business, she also has the ability to coordinate the efforts of diverse creative
employees and cover the overall marketing strategy and execution of plans for the
existing products amongst its competitors.

3. Strategic Business Location

302 P. Burgos St. Tacloban City is just the right location for the business. It is
located to its biggest market namely, Tacloban City. Existing and other potential
customers can easily locate the business for it is settled just along the road of P.
Burgos St. Tacloban City which is accessible to the customers.

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B. Weaknesses:
This refers to the edges of the competitors against the business.

1. Limited Delivery Services

The business does not offer free delivery of meal to their target market.
Customers would just text/call the owner for orders and would come over the
business when their orders are ready for pick-up. And they allow customers to have
their reservations to assure some seats for them.

2. Lack of Regular Supply of Seafoods

Since the business gets most of their supplies of seafoods from General Santos
City (Gensan). This means that they must make timely orders to ensure continuous
production activities.

EXTERNAL

C. Opportunities:

This is the external or uncontrollable factor of the business which is the chance
to do something for the accomplishment of the firm’s goals.

1. Business Expansion
In every business there is always a possibility of business expansion for future
purposes, if the business is not already enough to sustain the needs and wants of the
customers or the target market. Expansion becomes helpful to the business
especially to the owner, because the business will gain more profit and it means
that the business is doing good and becomes progressive.

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2. Technology Involvement

Technology nowadays has a huge impact to the business industry. It makes


the business works in an easiest way by the help of the technology, and It helps the
business function well and operates in an advance way to make the business more
progressive.

D. Threats:

This is the external or uncontrollable factors of the business which is


unfavorable and which may cause to the not accomplishment of the firm’s goals.

1. New entrants of competitors

The entry of new competitors is a big threat to the firm. This may result to
the decline of the firm’s number of customers. Lesser customer means lesser sales
and lesser sales means lesser income.

2. Breach of Contract with the Suppliers

If the supplier has performed poorly, you might be able to terminate the
contract for a breach on their part. Failure to carry out work within a specified time
might be a ‘material breach’, which allows you to end the agreement and claim
damages.

3. Calamities

Eastern Visayas is truthfully prone to calamities due to the typhoons


passing our region. That’s why it is really inevitable that losses and financial
obligations may arise due to these events.

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STRATEGY FORMULATION

STATEMENT OF MISSION AND VISION

Every business has its own Mission and Vision. This is where they indicate their
goals in performing the business operations and their plans on what they want their
business to become in the near future.

MISSION:

The New SOCSARGEN Grill & Seafood Restaurant aims to provide a splendid dining
experience, with authentic high quality of seafood, aesthetic environment and accommodating staff
at reasonable prices that would satisfy customer’s expectation.

VISION:

To continuously do operations that is profitable while focusing on customer satisfaction,


exceptional service and staff loyalty while constantly improving business performance. And to
continually strive for the best in everything, the best in service, the best in food quality and the
best in corporate growth.

OBJECTIVES:

To emerge as leaders in the food-service industry through ongoing development of our


products, the overall quality of our operations.

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Table 2

TOWS MATRIX

IFAS

EFAS Strength Weakness

1. Quality and Affordability of the 1. Limited Delivery Services


Product 2. Lack of Regular Supply of
Opportunity
2. Competent Management Seafoods
3. Strategic Business Location 3. Limited area of the business
4. Business Expansion 4. Limited number of
5. Technology Involvement employees

1. Product innovation 1. New entrants of competitors


2. Strong competition 2. Breach of Contract with the
Threats
3. Government intervention Suppliers
4. Price stability 3. Calamities
5. Promotional strategies 4. Poor quality service

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Opportunities - Strength

1. Quality and Affordability of the Product


- Every food (dish) that is being served in New SOCSARGEN Grill & Seafood
Restaurant is good for 2-3 persons which is affordable enough to satisfy the expectation
of the customer and to satisfy the price in every dish. It will create a good image for
the business as an opportunity to gain more customers, since the products that is being
offered is affordable to its target market without compromising the quality of the
products.
2. Competent Management
- The owner of the New SOCSARGEN Grill & Seafood Restaurant has competent
management to the point that the business won’t run for more than a decade if the
business is not competitive to the market. And aside from the fact that their family
came from a wealthy family and came from a business minded family, some of the
members of the family who are considered owner of the business have been working
as a manager from different banks for more than a couple of years already and it would
be an opportunity for them to expand their business and to maximize their profit for
future purposes and for the development of the business.
3. Strategic Business Location
- The business has the right location for it is located alongside of the road of 302 P.
Burgos St. Tacloban City and it can easily be seen and locate by some passersby who
are considered future customers of New SOCSARGEN Grill & Seafood Restaurant and
also for the reason of being accessible to its target market.
4. Business Expansion
- Business expansion has something to do for the development of New SOCSARGEN
Grill & Seafood Restaurant which is a sign of a progressive business. It helps the
business cater a large number of customers and to maximize its profit for the
improvement and development of the business.
5. Technology Involvement
- As time goes by, technology becomes a part of every business transactions and
becomes helpful to every business organization. Where in fact, technology is the reason
why most of the business establishments becomes more progressive for them to keep

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on being competitive to its competitors, that’s why New SOCSARGEN Grill &
Seafood Restaurant keeps on adapting new technology for them also to become more
competitive and advance in every transaction in the business.

Opportunities- Weaknesses

1. Limited Delivery Services


- Since New SOCSARGEN Grill & Seafood Restaurant doesn’t offer free delivery service
from outside customers, it would be hard for them to maximize services to their valued
customers and it will cause less profit for the business, unless if the customer is one of the
guests from the Rosvenil Hotel, they offer delivery service. For them to maximize their
services and to maintain good relationship with the customers, they should offer delivery
service just to satisfy their customers, so that their customers will continue to patronize the
business and it will add profit to the business.
2. Lack of Regular Supply of Seafoods
- Continuous supply of seafoods is one of the major problem of New SOCSARGEN Grill
& Seafood Restaurant for the reason that their supplier is from gensan, so it would take
more than a day before it arrives here in Tacloban. Since Tuna Fish is the major product of
New SOCSARGEN Grill & Seafood Restaurant that is abundant in Mindanao area
(Gensan), It would be hard for them to find a supplier somewhere here in region 8 That
offers same quality of products (raw materials) with affordable rate. But on the other hand,
it will create an opportunity for them to innovate a product as a substitute while the other
product is not available for the meantime.
3. Limited area of the business
- The area of the New SOCSARGEN Grill & Seafood Restaurant for their customers is not
enough to cater a large number of customers. The capacity of customers that they can only
accommodate with a maximum of 50-60 persons. So if they already reached the maximum
number of customers, they won’t accept customers anymore which results to less profit of
the business. Expansion of the business is really necessary for this kind of business just for
them to cater a large number of customers and to gain more profit for the business.

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4. Limited number of employees
- Every employee in New SOCSARGEN Grill & Seafood Restaurant is entitled to have at
least 1 day off in every 15 days and someone will replace him for the vacant position, so
tendency someone will do the multitasking just for the business to continue its operation
and it can affect the productivity of entire operation of the business. And there are instances
that there are many customers for that day but there are only few employees who are there
to accommodate the customers. In order to maintain the good quality service of every
employee, they should add more extra employees just to be reserved in case of emergency,
like if there are many customers for that day, at least they are prepared already to
accommodate a large number of customers.

Threat – Strength

1. Product innovation
- Being innovative is really helpful to the business where you can attract more customers
and it will make the business exciting. Though it will result to additional expense on the
part of the owner or the business itself, and there is no assurance if the new product will
work or not? That is one of the reason why New SOCSARGEN Grill & Seafood Restaurant
limits their business to innovate a new type of product, and it will create an additional
expense to the business.
2. Strong competition
- Competition in every business is a sign of a progressive business. For you to keep your
business exist, you have to compete to others in any possible way to gain superiority in the
industry. New SOCSARGEN Grill & Seafood Restaurant has been competitive ever since,
where in fact, the business won’t run for more than a decade if they are not competitive in
the market.
3. Government intervention
- The rule of the government in New SOCSARGEN Grill & Seafood Restaurant is to secure
that the business is operating legally for the safety of its customers, and it will create a good
image for the business. But it limits the operation of the business, since they are being
monitored by the government.

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4. Price stability
- Stable Price of the product has an impact to the business, in a way that the customer will
continue to patronize the product. New SOCSARGEN Grill & Seafood Restaurant makes
their products affordable to its valued customers without making unnecessary changes with
the price. Even though it won’t generate high profit to the business, but at least the amount
of customers won’t decrease due to the stability of the price.
5. Promotional strategies
- Promotional strategies has been proven effective that helps the business to be known in
the market. But New SOCSARGEN Grill & Seafood Restaurant limits their business to
use promotional strategies, for the reason that it is costly on the part of the business and it
is an additional expense to the business, that’s why they prefer to focus on the products and
services on how they will improve it in the future.

Threat – Weakness

1. New entrants of competitors


- In every business new entrants of competitors are a threat for the business itself, it makes
the business less profitable to the point that the amount of their market share will decrease.
2. Breach of Contract with the Suppliers
- Suppliers is one of the reason why New SOCSARGEN Grill & Seafood Restaurant is still
existing. Supplier has a huge impact to the business, where in fact they are the one who
supply the needed materials to create a final product or the finished product for the
business. And it would create a big problem for the business if their suppliers are no longer
willing to supply or if their suppliers are no longer capable to supply the raw materials for
them.
3. Calamities
- We all know that Region 8 (Eastern Visayas) is prone to calamities like typhoons.
Calamitous event like typhoons is inevitable to control which can really affect the operation
of New SOCSARGEN Grill & Seafood Restaurant that leads to possible downfall of the
business.

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4. Poor quality service
- Aside from the good quality of products that most of the customers is looking for, they
also prefer to patronize a business who offers good quality service for them to feel
comfortable. That is also the reason why New SOCSARGEN Grill & Seafood Restaurant
keeps on working on how to provide a good quality of service to its valued customers, just
to assure that their regular customers won’t bother to go to another restaurant for them to
be satisfied.

FUNCTIONAL STRATEGY
Marketing Strategy

- New SOCSARGEN Grill & Seafood Restaurant offers catering service to maximize its
business operation. And aside from catering service that they offered, they also offer
breakfast meal from the guests of Rosvenil Hotel, since Rosvenil Hotel is one of the
businesses of the owner of New SOCSARGEN Grill & Seafood Restaurant. This is the
strategy of the owner to maximize its business to become more productive and for the
business to gain more profit.
 Product
- Most of the products that are being offered in New SOCSARGEN Grill & Seafood
Restaurant was inspired from the idea of the owner through research and from the idea of
their cook, but they made sure that the innovated products are still unique by adding some
ingredients to the dish to make it different from the original one. They keep on innovating
products by the help of their cook, and every year they add 2 or more new dish to their
menu.
- New SOCSARGEN Grill & Seafood Restaurant also gives freedom to their customers
to decide on how it will be cook, the way they want it to be cooked.
 Price
- When it comes to pricing, New SOCSARGEN Grill & Seafood Restaurant uses
competitors-based since most of the raw materials that is needed for the process of
every product has no constant price or value

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 Place
- Location or place is one of the factors to consider being able to prosper and succeed
business. It must be in strategic places wherein the businessmen and the customers may
interact with each other.

- The location of New SOCSARGEN Grill & Seafood Restaurant is located at 302 P.
Burgos St. Tacloban City which is just the right location for the business. Since It is located
to its biggest market namely, Tacloban City. Existing and other potential customers can
easily locate the business for it is settled just along the road of P. Burgos St. Tacloban City
which is accessible to the customers.
 Promotion
- This key element of marketing program is concerned with effectively and efficiently
communicating the decision of marketing strategy to influence target market’s perception
to facilitate exchange between the marketer and the customer that satisfies the objective of
both customer and the business entity.
a. Tarpaulin
- This kind of promotion has been proven effective yet a cheaper way of promoting
a business to its valued customers where some information of the business like
name of the business, its address, contact information and most especially the
products offered are being attached. New SOCSARGEN Grill & Seafood
Restaurant uses this kind of promotion to attract more customers for them to be
aware of what’s the business offers.
b. Free Delivery
- An agreement between a buyer and seller wherein the seller makes delivery on the
security even if full payment has not been made. This marketing strategy will result
to increase in sales. Since ROSVENIL hotel is also one of the businesses of the
owner and is currently located beside New SOCSARGEN Grill & Seafood
Restaurant, they offer free delivery to the guest of ROSVENIL hotel for them to
patronize the business instead of going to another restaurant for meal.

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 Policy
- Make use of right resources in every business transaction to maximize the profitability
of the business through its marketing strategy by implementing appropriate strategy to
the organization.

Financial Strategy

- In order to maintain the financial stability of the business, the business should make
use of their financial resources in a wiser manner by investing it to the right financial
institutions or investing it for the development of the business. Luckily the owner of
New SOCSARGEN Grill & Seafood Restaurant is an expert in investing and allocating
their excess funds, since most of them are working as a manager from different banks.
 Policy
- The right use of financial resources can help the business maintain its financial
stability by using minimum production cost and monitoring the cash flow of every
business transaction.

Operation Strategy

- Aside from the good quality and affordability of the offered products in New
SOCSARGEN Grill & Seafood Restaurant, they make sure that the services that they are
offering to their customers won’t be compromised by the good quality and affordability of
their products. because they know that good services from their employees is one of the
reason why their customers keep on patronizing their business due to the good quality of
the services that they offered to their customers and for them to create good relationship
with the customers.
 Policy
- Continuous improvement of the service through adaptation to modern technology
and making a functional framework for staff actions.

Human Resource Strategy

- Most of the employees of New SOCSARGEN Grill & Seafood Restaurant have been
trained from different areas in the organization for them to be skilled enough for emergency
purposes. They hired employees who are well-trained and has an experience in the field or

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areas where they are assigned and they are also knowledgeable in the operations of the
business. They also give free meal to their employees and right benefits for them to be
satisfied.
 Policy
- Equal employment opportunity for every employee like conducting training
program for new and old employees, performance evaluation every 6 months,
salary increase and most especially is respect each other’s opinion or suggestions
regarding to business matters or business issues.

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Strategy Implementation

Marketing
Program: “Promotion through technology involvement”
The most efficient and effective way of promoting your business is using a technology.
It helps the business easily be recognized by your potential customers, since technology
nowadays has already been part of our daily activities in life.

Budget:
- The Table below shows the cost of the materials for the promotion of the business
using technology.
Table 3

Particulars Amount
Tarpaulin P 5,000
(size=3x6, pieces=20 pieces)
Brochures 2,500
(8.5” x 11” Tri-fold Brochure=50 pieces)
Facebook fan page & Instagram (IG) Account Free
TOTAL P 7,500

Procedure:
1. Determine the target market of the business to whom you can distribute your
promotional materials.
2. Determine the kind of social media that the business will be use through survey.
3. Distribute the promotional materials to the target market in the busy area and create an
account using social media (Facebook fan page & Instagram account) to promote
the business.
4. The promotion will be done on the first week until second week of operation after the
implementation of strategy.
5. Encourage customer concerns or customer feedback about the business and take legal
actions for the development of the business.

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Financial

Program: “Proper allocation of fund through business expansion.”

Business expansion is a sign that the business is progressive and the owner is allocating
the fund wisely. It will help the business gain more profit and maximize its resources.

Budget:

- The table below shows the cost of the renovation of the building with furniture and
fixture which will be used for the expansion of the business.

Table 4

Particulars Amount

Renovation of the building P 500,000

Tables 30,000

Chairs 20,000

TOTAL P 550,000

Procedure:

1. Study the location of the business.


2. Estimate the needed area for the business expansion.
3. Hire some experts to do the job, like architecture and engineer.
4. Buy the needed materials for the renovation of the business.

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Operation

Program: “Adaptation to modern technology to improve quality service”

Quality service is the reason why a customer keeps on patronizing the business. Aside
from the good quality of the products, they also consider the good quality of service for
them to be satisfied.

Budget:

- The table below shows the office equipment used in operating the business with their
respective unit price.

Table 5

Assets Unit Price

Electric Stove P 29,939

Computer Set 25,000

Printer 5,000

Cash Register 15, 000

TOTAL P 74,939.00

Procedure:

1. Conduct a research on what particular machine or advance equipment is needed


that can be helpful for the development of the business.
2. Allocate budget to Purchase the needed machine.
3. Assign someone who will operate the machine and train him/her.
4. Use the machine properly and allocate fund for the maintenance of every
equipment.

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Human Resource

Program: “Appropriate recruitment.”

The business should have an appropriate recruitment like hiring skilled employees and
conducting a training for those newly hired employees by outsourcing a trainer to help
those new employees become more skillful in their respective chosen field.

Budget:

- The table below shows the number of outsourced employees that is needed to handle
a training program that will help those new employees become more skillful for them
to become more productive for the day-to-day transaction of the business with their
offered salary.

Table 6

Man power (through outsourcing) Contract Salary

1 Chef P 10,500 (1,500/day)

1 HRM Graduate with Master’s degree 7,000 (1,000/day)

TOTAL P 17,500.00

Procedure:

1. Post some information about the vacant position in the organization.


2. Conduct a screening for qualified applicants for every vacant position.
3. Choose the right person who is skilled enough to handle the task for every
vacant position.
4. Conduct a training program for those newly hired employees.
5. The training will last only for a week.

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Evaluation and Control

Evaluation

After the implementation of different kinds of functional strategies to the organization, I


realized that there are some problems that they have to consider and immediately take legal actions,
before it affects the productivity of the organization in the future. I suggest that they should
continue to implement different functional strategies in the organization to be able to determine
the importance of conducting a study or implementing a strategy in the organization. And how the
business will adapt changes that is happening to the society for it to continue to prosper.

Control
Behavior Control:
The following information specify how something is to be done through policies, rules,
standard operating procedures and orders from a superior when implementing the strategy.

 Marketing – Advance technology involvement


 Financial – Proper allocation of fund
 Operation – Better quality service
 Human Resource – Enough number of employees

Performance Outcome

 Marketing
- The result of the marketing strategy that has been implemented by the organization will
help the business be more competitive to the market and may attract more customers in the
future and it will gain more profit for the organization.
 Financial
- Financial strategy has a huge impact to the organization on how you will maximize your
profit or the excess fund of the business, by implementing this kind of strategy that will
result to a better future of the business and can eliminate the risk of the business like
bankruptcy if you will know how to manage your financial resources well.

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 Operation
- The result of the operation strategy that has been implemented by the organization will
help to determine if the business does function well and it will create an idea to the owner
of what kind of services that the business should continue to follow.
 Human Resource
- In every business organization, man power is the most important asset of the organization
where they are the one who will work for the development of the business organization and
they are the one who will make the business function and keep on existing. This strategy
will result to an advantage to its competitors if the business has enough man power to do
the task that will lead to a better quality service compared to its competitors.

Primary Measures of Corporate Performance

New SOCSARGEN Grill & Seafood Restaurant


INCOME STATEMENT
2016-2017
2016 2017
Sales 7,200,000 9,000,000
Less: Cost of Goods Manufactured and Sold 3,516,000 4,043,400
Gross Profit 3,684,000 4,956,600
Less: Operating Expenses 1,339,400 1,448,650
Income Before Interest and Taxes 2,344,600 3,507,950
Less: Income Tax 703380 1052385
NET PROFIT 1,641,220 2,455,565

New SOCSARGEN Grill & Seafood Restaurant


STATEMENT OF OWNER’S EQUITY
2016-2017
PARTICULARS TOTAL
Beg. Capital 1,500,000
Add: Profit 1,641,220
Capital 2016 3,141,220
Add: Profit 2,455,565
Capital 2017 5,596,785

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Appropriate Measures of Performance

Return on Investment

ROI = Net Income (EBIT) / Total Asset

YEAR Net Profit (EBIT) Total Asset Rate %

2016 1,641,220 1,600,000 1.02%

2017 2,455,565 1,800,000 1.36%

The table above shows that for every peso of investment the business earned 1.02 php for
the year 2016 and 1.36 php for the year 2017. The rate of return on investment is increasing from
2016 to 2017 which means that the implementation of different kinds of functional strategies to
the organization has been proven effective and can attract more customers. Increase in ROI shows
that the investment center has satisfactorily results in other fields of performance.

Return on Equity

ROE = Net Profit / Total Equity

YEAR Net Profit Total Equity Rate %

2016 1,641,220 3,141,220 0.52%

2017 2,455,565 5,596,785 0.43%

The table above shows that for every peso of investment the business will have a return
of 0.52 php for the year 2016 and 0.43 php for the year 2017

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ASIAN DEVELOPMENT FOUNDATION COLLEGE

P. Burgos Street, Tacloban City

New Socsargen Grill & Seafood Restaurant

In Partial Fulfillment

Of the Requirements in Finance 110

(Strategic Management)

Submitted to:

Letecia A. Bartolome Ph.D

Adviser

Submitted by:

Ronnel T. Jomoc