CHAPTER I

PROJECT SUMMARY

A. INTRODUCTION

This Feasibility Study evaluates the technical and financial feasibility of putting up a

business like a Jewelry store. In planning and putting up a business is not easy as you think,

you need to study the different aspects like how can a business succeed and who are the

competitors, and what are strategies we need to succeed.

In this chapter, the group presents the highlights, descriptive definition, long- range

objectives, feasibility criteria, history and basic conclusions of studying the business

viability of “ARC Jewelry Store”.

B. HISTORY AND BACKGROUND OF THE STUDY

The ARC Jewelry Store, which is to be located in the Sta. Lucia East Grand Mall in Marcos

Highway cor. Felix Avenue, San Isidro, Cainta, Rizal, is a new business. ARC Jewelry Store

offers a great selection of gemstone jewelry in various designs, colors and sizes. Our

jewelry will include bracelets, necklaces, earrings and rings. All of the pieces will be

designed and created by the owner. The store will stock a wide selection of jewelry and

will offer a service to make custom pieces for shoppers while they wait or shop in the mall.

All sales for the business will be through this mall store. Before the start of business

operations the owner plans to hire a sales representative to handle customer interaction

and some marketing.

The purpose of this business plan is to develop a blueprint of the company's vision and

strategy and then use this plan to as a guide to develop and grow the business. This

business plan will also be used to align the various elements of the company to create a

coherent system of sustainable customer satisfaction and profitability.

The ARC Jewelry Store will focus on primary market, men and women. We will

concentrate our marketing efforts on professional men and women, as well as those who

like to dress up when going out for the evening. ARC Jewelry Store will sell to these

customers by suggesting color combinations and styles for various outfits and occasions

demonstrating our knowledge of fashion design and customer service targeted at

individual shoppers.

In this industry trends are in our favor. Gemstones are popular because of their unique

natural colors and features; they are affordable yet ideally suited for business attire and

both informal and informal occasions. Gemstones complement and can dress up any outfit

on a woman.

C. AMONG THE PROPOSED BUSINESS, WHY IS IT CHOSEN? WHAT IS THE REASON FOR

CHOOSING BUSINESS?

The project came about the thought of a business partnership between the group

members originating from a fast food chain up to the Jewelry Store. Thinking of what

business to put up that suit inside the Sta. Lucia Grand East Mall is really the main thing. A

fast-food chain may be viable in the location however a lot of competitors are already

operating inside the mall so the group though of a different business where in the target

audience could focus their attention into; and that is a Jewelry Store.

Jewelry store are seen to be good business since there are less competition. This kind of

business does not require much effort for the customers and the business owners as well.

For the business owners, hiring few employees that would manage the business is just the

only task to do. Employees will be needed for selling the jewelry. Thus, the group thought

of this kind of business for practicability and demand from the target audience. It will be a

good help for meeting the customer’s expectations through satisfying their wants.

D. COMPANY VISION

The corporate vision of the ARC Jewelry Store is to be the “Brand of Philippines, Sparkling

the World”. This is also our core brand value. The company always puts forth maximum

effort to reach its goal of becoming a globally recognized and desired brand, and as one of

the Philippine’s most renowned brands in the luxury industry, the ARC Jewelry commits to

crafting the finest jewelry for customers to further establish its reputation in the local and

international market.

E. COMNPANY MISSION

The ARC Jewelry Store's mission is to design, make and sell high quality fashionable jewelry

designed primarily around gemstones. The ARC Jewelry Store will offer an exceptional

level of customer service and personalized fashion recommendations tailored to the

individual customer. We exist to attract and maintain customers through our unique

combination of designs, quality, and customer service and fashion recommendations.

F. COMPANY OBJECTIVES

The primary objectives of the business plan for The ARC Jewelry Store are below:

• To create a product-based store whose goal is to exceed customer's expectations in

design styles, quality and customer service.

• To develop a sustainable merchandising unit that sells gemstones and customized

jewelry to meet the needs of the professional and outgoing woman.

• To increase the number of products sold by 20% each year.

• To introduce a minimum of three new designs weekly.

G. NATURE OF BUSINESS

Jewelry industry is a strong and energetic business. Also, what makes it more appealing to

the market is the fact that this steadfast industry continues to grow and succeed. The

demographic trends toward an even greater dwelling segment of the population forecast

continued success.

The biggest threat for the business is the competition. Considering that the business site is

inside a mall, it is possible that other businessmen would think of putting up the same

business and hence, the market will be more segmented and it yields a smaller target

market for the jewelry shop. However in the long- run, the business will not just dominate

the whole mall but will also extend to other places like the nearby mall near the Cainta,

Rizal and probably other areas like Rizal province or Metro Manila area.

H. LOCATION

The store will be located in Sta. Lucia East Grand Mall in Marcos Highway cor. Felix Avenue,

San Isidro, Cainta, Rizal.

I. REASON WHY THE LOCATION WAS CHOSEN

Sta. Lucia East Grand Mall is owned by Sta. Lucia Realty & Development Inc. and is one

of the largest shopping malls in the Province of Rizal. The mall is situated along Marcos

Highway cor. Felix Avenue (formerly Imelda Avenue), located at the boundaries between

barangay San Isidro, in Cainta, Rizal and Barangay San Roque in Marikina.

The mall caters the areas of Cainta, Pasig City, Antipolo City, and Marikina City with the

estimated population of 1,000,000 residents.

J. DESCRIPTIVE DEFINITION OF THE STUDY

We choose jewelry business as our sources of income to us. That may lead us to become

successful in our major goal in life to promote to the customer that they are our priority. In

this kind of business to give them a good service and a warmth welcome, to make them

enjoyed and relaxed while they are inside and to appreciate our service that will visit and

buy jewelry from our store. To become popular to the customers our service and the

jewelry store.

K. MARKETING STUDY

For the business to succeed, it should be given time and effort. The proponent of a jewelry

business such as rings, necklace, etc. must possess the needed creativity so as to be able to

provide quality service to its customers. The satisfaction of the needs and wants of its

customers or target market must be the main objective of the proposed business.

In every project feasibility, marketing aspect is considered the most important because it

requires discreet analysis of the business total demand and supply. This chapter will

discuss the demand analysis, supply analysis, market size, market trends, market analysis,

marketing program and SWOT Analysis.

L. TECHNICAL STUDY

This study discusses about the processes of production and activities of ARC Jewelry Store.

It states also the equipment and supplies used in business and other aspects regarding

bringing the raw materials into a finished product ready for trade. Store layout, and size

are all presented for the purpose of identifying the business operation. Also, product

specifications, the product processes using flowchart, the list of machinery, tools, and

equipment are enumerated with their corresponding costs, the raw materials and fund

sources are also cited.

M. ORGANIZATIONAL AND MANAGEMENT STUDY

This study discusses about what form of ownership we have in our business together with

the organizational chart of the company. It states also the duties and responsibilities of the

staff and their job description. The management proposals are all presented for the

purpose of business operation guidelines. The employee benefits are also included in this

study.

N. FINANCIAL STUDY

This study discusses about sales forecast of the business it also states the financial plan we

need before we operate our business. In financial plan, we outline what are the important

assumptions in our business, how much is the start-up cost to setup the business and also

who are the sources of funds and how to use it.

CHAPTER IIMARKETING ASPECT

I. MARKET ANALYSIS

The ARC Jewelry Store is specifically targeting women in the Sta. Lucia Grand East Mall. Women

and men in the workplace, as well as women and men that are sociable in the evenings (i.e.,

events, parties, etc.) are the primary focus for the ARC Jewelry Store's high fashion gemstone

products. We chose this area as it is situated in Marcos Highway cor. Felix Avenue, San Isidro,

Cainta, Rizal. Also, Sta. Lucia Grand East Mall serves as one of the nation’s most affluent and

densely populated areas.

Women can appreciate how easy it can be to change their look with jewelry without the

expense of purchasing a whole new outfit.

II. MARKET SIZE

There are about 250 firms in the country that are engaged in the jewelry industry, employing a

pool of more than 100,000 workers. Small and medium-scale jewelry enterprises hold about

50 percent of the industry, while the top 10 largest jewelry chains and manufacturers hold less

than 25 percent.

a. Industry Participants

Major participants include Karat World, Unisilver, Oro China and many more.

Competitors:

Karat World - Fine jewelry for the Working Woman of today! Everyday Jewelry

with a wide assortment of Diamond and Gold Engagement and Wedding Rings.

Goldenhills Jewelry - offers a large selection of fine jewelry made of gold and set

with diamonds, pearls, and other semi-precious stones.

Unisilver - fuses fashion polished 925 sterling silver, it caters to men, women

and teenagers who love and breathe fashion and are in tune with the latest

trends. 

Aurum by Tambunting – this owned by Tambunting Pawnshop and offers

different kinds of jewelry

b. Market Segments

The Sta. Lucia Grand Mall caters the Cainta area, Marikina City area, Pasig area, and

Antipolo Area. It encompasses roughly about 1,000,000 residents earning an average

P12,000 per month.

III. MARKET TRENDS

One of the most trendy and fashionable types of jewelry on the market is gemstone jewelry.

Gemstone jewelry is made in various designs, colors, and styles with a design, which contains

one or more beautiful gemstones as a focal point. While various types of gemstone jewelry are

popular, there are different gemstone jewelry trends each year. One year it may be considered

extremely fashionable to wear ruby earrings while the next year rubies may be out.

• The latest red carpet fashion trend is pear shaped, gemstones drop earrings. Tacori is at the

front line of style. These earrings are versatile and can go from a day to night, from jeans and

ballet flats, to a sexy little black dress.

• Amethyst is another popular gemstone especially in the fall. It is a great accessory to any ring

or necklace. Considered to be a precious stone, amethyst ranges in shades from lavender to

an intense, deep purple.

• Another trendy gemstone is the moonstone, a gorgeous, translucent gemstone in shades of

peace, blue, pink, and white. Moonstone jewelry continues to be all the rage.

• Rutilated Quartz is made from needles of the mineral known as rutile which is embedded in

crystal quartz. Rutilated Quartz is known to ease depression. Gemstones of this type are often

found in various types of jewelry from necklaces to bracelets.

• Chandelier earrings are becoming increasingly popular. These earrings are an exotic, Indian

inspired design and appeals to women all over the world. Anyone would feel absolutely

radiant when wearing this type of jewelry.

• Big, bold, and colorful jewelry is among the gemstone jewelry trends. Black jewelry with

large gemstones is very popular amongst various individuals today.

IV. TARGET MARKET

ARC Jewelry Store is targeting women and men in the Cainta area, Marikina City area, Pasig

area, and Antipolo Area. This is a sophisticated community and there is no doubt that the

community is the centerpiece of stylish shopping. In addition, since women are the primary end

consumers of jewelry, it's natural for our ARC Jewelry Store to spend most of its marketing

resources targeting this largest market.

V. MARKET NEEDS

The jewelry we will market will meet the needs of woman who are looking to dress up their

outfit with quality gemstone jewelry. And also for the men who loves jewelry as there

accessories. The jewelry will be suitable for both formal and informal events.

VI. UNIQUE FEATURES OF THE SERVICES

ARC Jewelry Store offers customer to customized piece designed for them onsite. And in terms

of services, we offer 3 hours’ time frame to finish the customized jewelry.

VII. DEMAND AND SUPPLY ANALYSIS

a. DEMAND ANALYSIS

A total of 300 respondents took part on the survey conducted by the proponents of this

business. After gathering and recording all the data, it shows that 75% of the respondents

belong to the age bracket of 18-23 years old. The result also shows that 65% of the

respondents are female while 35% are male. About 85% are single while the other 15% are

married.

With regards to their monthly income, most of the respondents belongs to the income

bracket of P10,000-15,000. This also indicates that most of them are young generation who

comprise about 90% of the sample size. About 65% of the respondents are willing to spend

up 10% of their income for jewelry products mostly for women, while 15% are still

undecided to spend their income in buying jewelry products and 20% of it don’t want to

spend their income for jewelry.

Among the products and services offered by ARC Jewelry Store, the respondents also

consider the price and what kind of the jewelry as the main factors in buying jewelry.

b. SUPPLY ANALYSIS

Based on the data gathered from the survey of jewelry store in Philippines, it shows that

about 250 firms in the country are engaged in the jewelry industry. Most of the sellers of

jewelry give priority in providing quality service, affordable process and good

advertising/production in order to stay competitive in the service market.

VIII. MARKETING STRATEGY

The ARC Jewelry Store will provide high quality gemstone jewelry to men and women. Other

jewelry retailers have lagged in this particular market by not concentrating on providing a large

variety of colors, sizes and designs. We intend to leverage our expertise, product offering and

marketing strategy to increase our customer base while driving sales and profit.

IX. SWOT ANALYSIS

The SWOT analysis provides us with an opportunity to examine the internal strengths and

weaknesses the ARC Jewelry Store must address. It also allows us to examine the opportunities

presented to The ARC Jewelry Store as well as potential threats.

A. Strengths

• Strong relationships with suppliers that offer credit arrangements, flexibility, and

response to special requirements.

• Excellent and knowledgeable staff, offering personalized customer service. The ARC

jewelry sets itself apart from the competition by providing customized jewelry designs

while the customer waits.

• Great retail space with an attractive, inviting atmosphere.

• The owner keeps overhead low by purchasing directly from local suppliers and self-

creating the majority of the merchandise.

B. Weaknesses

• Access to additional operating capital.

• Revenues in the industry are cyclical; the majority of revenues are earned during the

fourth quarter and 25% are earned in the month of December.

• Owners are climbing the retail experience curve.

C. Opportunities

• Increase in higher income of target market.

• Addition of other jewelry related products and services.

D. Threats

• Local and emerging competitors.

• Shoplifting.

• Sales tied to economic growth.

X. 4P’s of MARKETING

A. PRODUCT

The ARC Jewelry Store will specifically carry gemstone jewelry that is designed for the

professional and sociable man and woman. Our selection will range in various colors, sizes

and styles to meet the unique needs of the everyday man and woman. Here are the lists of

product offered by ARC Jewelry Store.

CORPORATE TOKEN

DIAMOND JEWELRY

ENGAGEMENT RINGS

GOLD JEWELRY

SILVER JEWELRY

PEARL JEWELRY

PINS, MEDAL NAMEPLATE

SCHOOL RINGS

WEDDING RINGS

FRIENDSHIP RINGS

EARRING

PENDANT

NECKLACE

B. PRICE

The ARC Jewelry Store will use a dynamic pricing model. All jewelry will be clearly marked

with prices - - however, our pricing policy will allow for some flexibility. In order to

increase sales revenues, our sales representatives will be authorized to offer a maximum

predetermined discount to extend to their customers. This incentive will provide the

customer the perception of extra value and a bargain purchase.

Since we are operating from a shop and not an online store we will need to maintain

somewhat reasonable and affordable prices. Some items will sell as low as P200, but most

of the products will be priced from P200 to P20,000. There are a few pieces that will sell for

P20,000 to P100,000.

C. PROMOTION

Our primary promotion and advertising strategy will be word-of-mouth.

1. WEBSITE

Due to the nature of this business being a mall shop there are no plans to develop a

website during the initial startup of the business. We will develop a website after the

first six to twelve months which will be an informational site and will not list our

products. The website will have our location, fashion related articles and

announcements of new products.

2. PRINTS ADS

Advertisement on the local leading newspaper and magazines will be utilized to

further aggressive campaign of the business to penetrate the market.

3. LEAFLETS

To be used in introducing and informing the public about the existence of the

business “ARC JEWELRY SHOP” which includes the location map and the

services offered.

D. PLACE

The ARC Jewelry Store will be located in 2nd floor near Watson of Sta. Lucia Grand East Mall.

It easy recognize because of the unique store façade and by the store logo.

XI. MARKETING PROGRAM

Our marketing program will primarily consist of our highly visible and centrally located kiosk in

the Sta. Lucia Grand East Mall location.

1. DISCOUNTS

ARC Jewelry will offer 10% discounts in cash basis. And also will offer discounts

for seasonal occasion.

2. CREDIT CARD and DEBIT CARD PAYMENTS

ARC Jewelry will offer credit cards and debit cards by modes of payment.

3. SALES STRATEGY

Because ARC Jewelry Store is a new business, we understand that we will have

to prove our Company's worth to customers to earn their business. As equally

important, we need to sell both the Company and products.

We will approach sales from a salesperson-customer relationship basis. All

sales representatives will be trained and encouraged to assist customers in a

personal and engaging manner. By gathering key customer information and

seeking design feedback on our products will assist us in the following ways:

• Targeting our marketing efforts more effectively.

• Developing product offers that will increase sales.

• Training and developing sales representatives in order to effectively service

the customer.

• Increasing awareness of our ARC Jewelry Store within the jewelry retail

consumer marketplace.

• Developing future sales opportunities that allow for continued growth of the

business.

CHAPTER III

TECHNICAL ASPECT

A. LOCATION

The proposed business site will be operated at 2nd floor near Watson of Sta. Lucia

Grand East Mall, Marcos Highway Cor. Felix Avenue, San Isidro, Cainta, Rizal. We have seen

that the place will be suitable for putting up a business because there are lots of

shoppers at the mall. It is also accessible since it is along the road.

Figure1. Watson of Sta. Lucia Grand East Mall

B. GANTT CHART

The chart below states the activities for making a business establishment before the

normal operation will take place.

TABLE1. Gantt chart

C. STORE LAYOUT AND SIZE

FIGURE 2: STORE LAYOUT

Figure 2: Product Sample

D. PRODUCT

The ARC Jewelry Store will specifically carry gemstone jewelry that is designed for the

professional and sociable man and woman. Our selection will range in various colors,

sizes and styles to meet the unique needs of the everyday man and woman.

Management will rely on customer feedback and sales reports to eliminate or

introduce particular sizes, colors and styles.

E. PRODUCT DESCRIPTION

Our ARC jewelry store will carry wide selection gemstone jewelry with various styles

and price ranges. Each piece of jewelry will focus on designs which accent and bring

focus on the gemstones in that piece. The jewelry will be designed for casual, business

and formal occasions. We will offer gemstone jewelry that includes necklaces, rings,

bracelets, and earrings.

Customers can purchase premade jewelry or request a customized piece designed for

them onsite.

F. PRODUCT SOURCING

Raw jewelry making supplies will be sourced from locally. The owner of the business

has contacts in these suppliers for purchasing quality gemstones and supplies not only

at wholesale prices, but also providing credit arrangements and flexibility in payment

terms. This in turn provides some flexibility in the owners’ day to cash flow

requirements. Orders of supplies which are small in size and weight will be air shipped.

All products and supplies will be stored at the owner’s residence. While custom

designs will be made on site while the customer waits, the standard selection of

premade designs will be made at the owner’s residence.

G. LIST OF STORE EQUIPMENT AND SUPPLIES WITH CORRESPONDING COST

MATERIALS

EQUIPMENT

COMPUTER

FURNITURES & FIXTURES

OFFICE CHAIR

FILING CABINET

OFFICE TABLE

PRINTER

DISPLAY CABINET

OFFICE SUPPLIES

BALLPEN

PENCIL

FOLDERS

PAPER CLIP

STAPLER

STAPLE WIRE

BOND PAPER

SCISSOR

ENVELOPE

SCOTCH TAPE

TAPE DISPENSER

RECORD BOOK

PUNCHER

SHARPENER

ERASER

CORRECTION FLUID

QTY.

2

3

5

3

1

4

1 box

1 box

10

1 box

1

10 boxes

4 reams

1

20

4

1

5

1

1

5

2

UNIT COST

15,000

650

1,225

450

3450

1,225

100

100

5

25

30

5

120

20

5

15

50

75

65

10

10

50

TOTAL COST

30,000

1,950

6,125

1,350

3,450

4,900

100

100

50

25

30

50

480

20

100

60

50

375

65

10

50

100

SIGNAGE

FIRE EXTINGUSER

2

2

30

1,000

TOTAL

60

2,000

51,500

H. INVENTORY MANAGEMENT

In order to run the store successfully approximately P1,000,000 in inventory is

required. This inventory will be stored at the owner’s residence. The owner will utilize

bins to store and organize jewelry supplies. Final jewelry products will be kept at the

kiosk. Since this is a small business with limited inventory, all inventories will be

managed in a spreadsheet.

I. STORE SCHEDULE

ARC Jewelry Store will operate from 10am to 9pm. It will start selling at the moment the mall opens. The employees should be present one hour before the opening of the store for the arrangement and preparation.

J. SELLING PROCESS

These steps are meant to act a guideline in the selling process of ARC Jewelry Shop, as each sales approach will probably have to be customized to fit the situation and the customer.

Step 1: Be PreparedThe purpose of being prepared is to provide you, the salesperson, with pertinent information needed to increase your confidence in the selling process. Being prepared also means knowing your product and being able to answer any questions that pertain to it.

Step 2: Opening the SaleThe first essential key to selling is to develop sensitivity to your potential customer, and that is not always a simple task.

Step 3: ProbingOnce the customer is put at ease, feels comfortable and has developed some trust in you, your next step is to determine the customers' wants, needs and desires. This is done with the use of effective probing questions.

Step 4: The DemonstrationThere are two major objectives to be accomplished during the demonstration:*Establish the worth or value of the product...the benefit derived from the purchase.*Generating desire...the need to own the merchandise.In other words, cause the customer to say, "I'll take it" before you have to ask, "Will you buy it?" If you listened carefully to the customers' responses in probing, you'll have several good points to use in the demonstration.Step 5: Trial CloseA trial close is when the customer is not quite ready to make a decision, and you have to nudge them a little. Ask them which color they would prefer, or what size suits them best. Point out the different accessories or add-ons you also sell which may make the product more desirableStep 6: ObjectionsStep 7: Closing the SaleClosing the sale makes you a true salesperson. This is where you actually ask the customer to buy. One of biggest mistakes made by new crafts entrepreneurs is failure to ask for the order. Asking the customer to buy can be very difficult for most first-time salespeople —perhaps because it is the one question that by its nature demands a yes or no answer.Step 8: Confirmation and PaymentThis step eliminates buyers' remorse and returns, and increases repeat business.Thank the customer for their order or purchase and if possible use the customer's name (get it off cheque, credit card, etc.), this will help to establish a more personal relationship.

K. Waste Disposal Management

The waste from the store place will be identified as biodegradable. These wastes will

be disposed thru the collection of mall garbage. Non-biodegradable wastes will be

recycled or sold to junkshops.

CHATER IV

ORGANIZATIONAL AND MANAGEMENT ASPECT

A. FORM OF OWNERSHIPThe form of business is partnership. The name of the business firm is “ARC JEWELRY STORE”. The proponents choose the form of partnership because of the following reasons.

Advantages:

As compared to a sole proprietorship, a greater amount of capital can be accumulated in a partnership because of the numbers of person involved.

Better management will result in a partnership because of the concerted efforts and abilities of the partners.

As compared to the corporation, a partnership is supplier and less expensive to organize, there being only few legal requirements.

The partnership’s unlimited liability will serve as protection for the partnership creditors thus the letter will not be discourage to extent financial assistance.

Disadvantages:

Any personal rifts, deaths, withdrawal or incapacity of a partner may dissolve the partnership

Equal profit sharing despite unequal attention of time given by partners.

Because of numbers of person involved, conflicts and disagreement may arise and may easily affect the operation and success of the business.

B. ORGANIZATIONAL CHART AND STRUCTURESince ARC Jewelry Store is a small business, it will be managed by industrial partner and will have two sales representatives.

OWNER

Sales Representative

Sales Representative

Manager

C. EMPLOYEES

A. JOB TITILE: MANAGER

JOB DESCRIPTION:The jewelry store manager also plans and prepares work schedules for jewelry store personnel, assigns employees to specific duty requirements of the store, prepares and directs personnel with appropriate merchandise, and provides performance review. He/she is also responsible for storing display as well as advertising copy, performing sales work such as taking inventory, recollecting cash with sales receipts, and maintaining operating records such as records of store transactions. The jewelry store manager also orders merchandise and stock as needed; and ensures personnel comply with established store security level, as well as sales and record keeping procedures and practices.

DUTIES AND RESPONSIBILITIES:Duties of a jewelry store manager include assisting and managing the daily operations and activities of the jewelry store, as well as supervising employees with their daily work requirements.

QUALIFICATION: 3 to 5 years’ experience in a Management role preferably within a customer service

environment. Graduate of any four years course Male or female Strong verbal and written communication and interpersonal skills; attention to detail

and accuracy in work; and time management and organizational skills. Ability to maintain professionalism at all times when representing the company and

management to the public and company associates. Required to pass thorough background check and drug screen.

SALARY SCHEDULE:The salary of a manager is P 20,000 per month.

B. JOB TITILE: SALES REPRESENTATIVE

JOB DESCRIPTION:Under direction from the Store Manager, the Sales Representative is responsible for building sales volume, establishing and maintaining customer relationships, creating

effective teamwork among associates. The Sales Representative is not only the product filter subject matter expert, but also ensures a professional selling environment through the development of sales professionals.

DUTIES AND RESPONSIBILITIES: Recommend products to customers, based on customers' needs and interests. Answer customers' questions about products, prices, availability, product uses, and

credit terms. Provide customers with product samples and catalogs. Contact regular and prospective customers to demonstrate products, explain product

features, and solicit orders. Estimate or quote prices, credit or contract terms, warranties, and delivery dates.

QUALIFICATION: Customer Service Skills: The customer is always right. You will need to be able speak in

a friendly way to customers and potential customers, listening to their needs and helping communicate options for them.

Communication Skills: You will need to speak to customers about a product's different features, and answer any questions they might have.

Flexibility: You might have to work long hours, nights or weekends. Persistence: Not every customer is going to be a sale. Being able to bounce back if you

lose a sale will be key for this job. Graduate of any four years course. 18 – 28 years old. Male or female.

SALARY SCHEDULE:The salaries of Sales Representative are P 15,000 per month.

D. Management Proposal

A good rapport between management and the employees is a secret of a successful business.

Standardized hiring procedure

Standardized hiring procedure is implemented to guarantee the management that the

vacant positions are aware only to the most worthy applicants.

Recruitments

The management will recruit individuals through advertising for all the vacant positions in

need of occupants.

Screening

Through screening of applicants should be made. Aspiring employees will get through the

following stages.

a.) Submission of Resume

All applicants are required to provide a resume with 2x2 photo.

Qualified applicants will then be called for an examination

b.) Written examination

This is given by the management to test the applicant’s intellectual capacity,

capability, and knowledge about the position desired.

c.) Initial Interview

In this stage, the management often asks questions not necessarily existing at the

applicant resume.

d.) Final Interview

The aspiring individuals will a chance to prove themselves to the management that

they are worthy of the position they are applying for.

e.) Submission of requirements

After passing the final interview, the management requires the qualified candidates

to submit NBI Clearance, medical certificates, police clearance, residential certificate, tax

identification number, and SSS number. Failure to submit and comply requirements in due

time is a sure ball to declination. The strict parameter is intended to assure the workers

disciplines.

Hiring and placement

The applicant is now employed at this stage. And based on his qualification, he is now placed on

the appropriate position.

Orientation

The newly hired employees are oriented about the policies, rules and regulation of the company.

They are introduced to their superior and co-workers.

On the Job Training

The newly hired personnel will be trained within his actual working environment. Through this, he

will be familiar with the duties and responsibilities attached to him. This is usually last up to 2

weeks.

E. Employee Benefits

Overtime

For work rendered beyond 8 hours of regular working days, an additional 25% of the

regular per hour wage will be paid.

Holiday/Rest Day

Regular holiday – 100% of the regular hourly rate is added to daily salary.

Special Holiday/Rest Day – 30% of the regular hourly rate is added to the daily salary.

13th Month Pay

Staffs of ARC Jewelry Store are entitled to a 13th month pay, which is equivalent to one

month of the basic salary provided that an employee worked at the business for at least

one year. This is given no later than 20th of December. If employee resigned or contact has

ended within the year, the 13th month pay will be given to him/her through his/her quit

claim.

Pag-Ibig

Pag-ibig offers o its member the following benefits: housing programs, savings, and multi-

purpose load program. Membership to Pag-Ibig is voluntary if monthly basic rate is less

than P4,000.00.

SSS

ARC Jewelry Store will pay the employer share to SSS contribution, while employers share

shall be deducted from their monthly salaries.

Leaves

Service Incentive Leave

Service Incentive Leave Pay is the benefit of employees to avail of leave with pay for 5 days

provided she has rendered service for at least one year.

Solo Parents' Leave

Persons who fall under the definition of solo parents and who have rendered service of at

least one year are entitled to 7 working days of leave to attend to their parental duties.

Maternity Leave

A female member of the Social Security System (SSS) who has paid at least 3 monthly

contributions in the twelve-month period immediately preceding the semester of her

childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of her

average daily salary. The benefit is for 60 days for normal delivery and 78 days for caesarian

delivery for the first four deliveries and miscarriages.

Paternity Leave

The law provides for paternity leave of 7 days with full pay to all married male employees

in the private and public sectors. It is only available for the first four (4) deliveries of the

legitimate spouse with whom the employee is cohabiting.

Leaves under RA 9262

Women victims of violence provided under R.A. 9262 of the Anti-Violence against Women

and their Children Act are entitled to a paid leave of absence from work up to 10 days.

Leaves under RA 9710

The Magna Carta of Women introduced a 2 month leave for women with full pay based on

gross monthly compensation, for women employees who undergo surgery caused by

gynecological disorders, provided that they have rendered continuous aggregate

employment service of at least six (6) months for the last twelve (12) months

F. ORGANZATIONAL POLICIES Working day and time

Monday to Sunday10:00 am -9:00 pm

Payment of salaries/wagesPayment of salary/wages will be on the 5th and 20nd day of every month.

CHAPTER 5

FINANCIAL ASPECT

A. SALES FORECAST

The following table and related charts show our present sales forecast. Table 5.1 Annual Sales Forecast Annual Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5Sales Store Revenues 4,320,000 5,670,000 8,280,000 8,670,000 8.950,000Service and Repair 432,000 567,000 810,000 1,050,000 1,076,000 Total Sales P4,752,000 6,237,000 P9,090,000 9,720,000 10,026,000Cost of Sales Jewelry and Supplies 864,000 1,134,000 1,620,000 1,850,000 1,945,000Total Cost of Sales 864,000 1,134,000 1,620,000 1,850,000 1,945,000

B. FINANCIAL PLAN

Profit and Loss shows the profitability of the business, whereas, the Balance Sheet shows the financial position of the ARC Jewelry Store. The Cash Flow shows the status of cash received and cash paid over a specified period of time. These documents are required to get financing for your venture. Since we are entering a retail environment we will accept cash, checks, and all major credit cards. We will select a check guaranty system to help reduce the percentage of loss on bad checks.

1. Important Assumptions Profit and Loss Assumptions: • Estimated Average Sales Price per unit is 1,000 • Average daily sale: 2.67 units Year 1 • Average units sold monthly: 80 Year 1, 105 in Year 2 & 150 in Year 3 • 40% of revenues occur during 4th Quarter • 25% of revenues occur during December • Revenue increase in Year 2 assumes average daily sales of 3.5 units or 27.78% annual increase • Revenue increase in Year 3 assumes average daily sales of 5 units or 42.86% annual increase (Revenues will level off near year 3 and total assets will remain static) • Service and Repair estimated Revenue: 10% gross sales (industry average) • Cost of Goods Sold: 20% of gross revenues (compares higher than industry peers @ 49.10%; mainly this is attributed to two factors: 1) low cost associated with obtaining raw materials and finding from local + 2) owner also constructs the final product, further reducing overhead expenses. • Advertising Expense: N/A; Tarpaulin will be visible in the mall + word of mouth • Accounting: P18, 000 monthly bookkeeping + P27,000 for income tax preparations • Bad Debts: Estimate 5%• Depreciation: 5 years useful life • Credit Card Fees: P11.25 per transaction plus 1.5% • Insurance: Estimate P18,000 annually • Miscellaneous: Estimate: 11,250 annually • Payroll Tax Assumptions: based on BIR Income Tax Rates • Permits and License: Estimate P5400 annually • Rent: P50,000 per month • Salaries: Manager 20,000 per month , Sales Representative 15,000

Balance Sheet Assumptions: Start-Up Capital Items: • Shop + Display: P51,500• Beginning Inventory: P2,241,000 (which reflects industry averages and compares in line with industry peers) • PC Based cash register P15,000 (no annual maintenance fees) • Assumes annual growth rate for total equity: 5% Year 2, and 7.5% Y3

2. START-UP COSTS

The cost to setup a store and prepare it for operation total P2,533,500. Startup inventory will cost approximately P2,241,000. The bulk of the annual expenses annual store rental and are estimated to be P2,034,000 or 64% of total expenses. Start-up costs will be financed through owner investment.Table 5.2 Start-Up CostsStart-Up Assets Starting inventory P2,241,000 Fixtures and Equipment 51,500PC based cash register 15,000 Total Start-Up Assets P2,307,500Total Required Start-Up Costs P2,307,500

3. SOURCE AND USE OF FUNDS

This startup will be completely financed by the owner of the business. The startup funds will be used to purchase initial inventory, purchase the store and display case, and a PC based cash register. Additionally the owner will provide the necessary working capital requirements to fund day to day operations for the initial year of operations. The owner has enough funding to completely fund the business for the first 24 months without relying on sales or other sources of funds. The funds are liquid and primarily in the form of marketable securities.

Table 7.3 Source and Use of Funds Source and Use of Funds Sources of Funds Owners' and other investments P 4,171,580Total Source of Funds 4,171,580Use of Funds Capital equipment P 66,500Opening inventory 2,241,000Working capital 1,864,080Total Use of Funds P4,171,580

C. PROJECTIONS

There are three key projections needed for this section; Profit and Loss, Cash Flow and Balance Sheet. For a start-up business we have to project figures for all of the above financial statements, such statements are called pro forma statements. The word pro forma means provided in advance.

1. Projected Profit and Loss The Profit and Loss statement details the income and sales of ARC Jewelry over a specified period.

Income 2015 2016 2017 2018 2019Sales 4,752,000 6,237,000 9,090,000 9,720,000 10,026,000Cost of Goods Sold (864,000) (1,134,000) (1,620,00) (1,850,000) (1,945,000) Gross Profit 3,888,000 5,103,000 7,470,000 7,870,000 8,081,000 Expenses Accounting / Legal 18,000 20,000 22,000 24,000 26,000 Bad Debts 20,000 25,000 27,000 29,000 30,000Depreciation 12,555 25,110 37,665 50,220 62,775Credit Card Fees 75,600 99,225 141,750 151,250 170,500 Insurance 18,000 18,360 18,900 18,950 19,500Miscellaneous 11,250 11,115 11,475 11,500 11,575Payroll Taxes 70,425 169,065 253,575 260,575 275,347Permits and Licenses 5,400 5,580 5,715 6,000 6,000Rent 600,000 660,000 720,000 780,000 840,000Salaries 420,000 456,000 516,000 520,000 525,000Utilities 132,000 137,000 140,000 143,000 147,000Total Expenses 1,383,230 1,626,485 1,894,080 1,994,495 2,113,677 Net Profit P 2,504,770 P 3,476,515 P 5,575,920 P5,875,505 P 5,967,303

2. PROJECTED BALANCE SHEET

The balance sheet provides instant picture of the business. It has two sections; one is for assets and the other for liabilities and capital.Pro Forma Balance Sheet

Pro Forma Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5Assets Current Assets Cash 361,125 379,170 407,610 410,750 415,840Accounts Receivable 77,625 81,495 87,615 96, 795 105, 795Inventory 2,241,000 2,353,050 2,529,540 2,678,836 2,779,215 Other Current Assets 43,875 46,080 49,545 49,709 50,150 Total Current Assets 2,723,625 2,859,795 3,074,310 3,236,090 3,351,000Long Term Assets Long Term Assets 65,500 70,000 85,000 90,000 92,000Accumulated Depreciation 13,100 13,100 13,100 13,100 13,100 Total Long Term Assets 52,400 56,900 71,900 76,900 78,900Total Assets 2,776,025 2,916,695 3,146,210 3,312,990 3,429,900

Liabilities and Capital Current Liabilities

Accounts Payable 518,490 545,805 586,755 590,700 591,450Other Current Liabilities 339,750 356,760 383,490 385,840 387,490 Subtotal Current Liabilities 858,240 902,565 970,245 976,540 978,940Long Term LiabilitiesTotal Liabilities 858,240 902,565 970,245 976,540 978,940Paid In / Invested Capital 1,917,785 2,014,130 2,175,965 2,336,450 2,450,960Total Capital 1,917,785 2,014,130 2,175,965 2,336,450 2,450,960 Total Liabilities and Capital 2,776,025 2,916,695 3,146,210 3,312,990 3,429,900

D. FINANCIAL RATIOSOverall, the ARC Jewelry Store demonstrates sufficient liquidity, has no debt obligations, and demonstrates favorably profit margins.

Liquidity and Leverage: The Jewelry Store Kiosk has adequate liquidity and compares favorably with its peers based on its current ratios. In Year One, the ARC Jewelry Store reports a current ratio of 3.17. The ARC Jewelry Store’s leverage and equity ratios will not compare with its peers. This is primarily attributed to the fact that the owner will self-fund with no outside debt or financial obligations.

Profitability: Profitability compares below its peers as evidenced by its Return on Assets Ratio of 20.9% in Year One. Mitigating this average is the ARC Jewelry Store’s above average gross profit margin of 81.8% in Year. The owner is able to achieve such margins with reductions in expenses associated with overhead and by constructing the jewelry designs herself.

Activity: The average Inventory turnover is .70X times annually. The ARC Jewelry Store is anticipated to turnover inventory .38X in Year One, .48X times in Year Two and .64X in Year Three and compares to be in line with its peers. Although slow to turn, this is a commonality of the Jewelry Store Industry with merchandise inventories representing more than 50% of annual sales.

Table 7.6 Ratio Analysis Ratio Analysis Year 1 Year 2 Year 3 Year 4 Year 5Financial Ratios Quick Ratio 0.51 0.51 0.51 0.51 0.51 Current Ratio 3.17 3.17 3.17 3.17 3.17 Current Liabilities to Net Worth 33.9% 33.9% 33.9% 33.9% 33.9% Current Liabilities to Inventory 38.4% 38.4% 38.4% 38.4% 38.4%Total Liabilities to Net Worth 33.9% 33.9% 33.9% 33.9% 33.9%Fixed Assets to Net Worth 2 26.6% 26.6% 26.6% 26.6% 26.6% Inventory Turnover 0.4 0.5 0.6 0.7 0.8Assets to Sales 71.5% 57.2% 43.0% 84.0% 76.05%Sales to Working Capital 2.55 3.19 4.23 4.59 4.67Accounts Payable to Sales 10.9% 8.8% 6.6% 7.0% 7.9%Return on Sales 14.9% 16.0% 25.9% 26.8% 27.5%Return on Assets 20.9% 28.0% 60.2% 63.7% 64%

Return on Equity 28.0% 37.5% 80.6% 56.5% 64.2%