Souvenir Shop Real

TATAK KAPAMPANGAN 1
CHAPTER I PROJECT BACKGROUND
Historical Background
Tourist and residents define the meaning of a place by actually being
at the place, consuming products and services at the place, and through
their interactions with others at the place. From this perspective, the gift and
souvenir retail shop takes on more meaning in the travel destination
experience of travelers beyond the traditional retail shopping role. Since the
greatest part of the tourism product is intangible shopping for souvenirs as
mementos of the destination, it provides a tangible object symbolizing the
experience for visitors themselves and for their relatives and friends. The gift
of souvenirs can be a means of supporting a relationship with others in
social psychological perspectives. To sun and colleagues found that these
self-gifts and gifts to relatives and friends help travelers share their
experiences, and serve as trophies (or proof of travel) in their homes or
offices, and they suggest that providing a higher level of shopping
experience for tourist and increasing the contribution of shopping to the
regional economy require supporting indigenous, local people to fabricate
and retail authentic handicrafts and souvenirs.

TATAK KAPAMPANGAN 2
EVOLUTION OF SOUVENIR SHOPS
980 BC
THE FIRST SOUVENIR
 People started acquiring tokens and mementos from visited
countries.
 Amber beads from Scandinavia were found in Ireland and are
believed to be the very first souvenir.
500AD
RELIGIOUS RELICS
 It was common for pilgrims to chip pieces off religious buildings and
statues, thinking that they were transporting the miraculous powers
home.
 To stop this trend, churches started to produce souvenirs for pilgrims to
take home instead. Ampulla, little containers storing holy water, were
some of the first souvenirs created.
1400AD
THE FIRST MASS-PRODUCES SOUVENIRS

TATAK KAPAMPANGAN 3
 Pilgrim badges, which were easier to manufacture than ampulla, soon
became the souvenir of choice and were available at shrines across
Europe in vast numbers & designs.
1660-1840
THE ULTIMATE EUROPIAN EXCURSION
 The Grand Tour was a traditional coming-of-age trip undertaken by
wealthy travelers which started in Europe.
 It was fashionable to return with a variety of paintings, personal portraits,
sculptures, fine clothes and monuments as a show of their new found
knowledge.
MID 1800s
SOUVENIR MANIA: COLLECTING SPOONS
 Souvenir spoons were produced in thousands of designs to
commemorate American cities, towns, famous people, and significant
historical events.
 Today, it is a niche hobby and each spoon can range from US$5 to
US$3000.
1870-1960
THE SOUVENIR BOOM

TATAK KAPAMPANGAN 4
 As travelling became more affordable, and industry for inexpensive
souvenirs rocketed, giving rise to even more types of vacation
keepsakes. Popular ones in England included painted images of seaside
towns on vases and figurines.
 Souvenir cups depicting various destinations enjoyed a golden age,
followed by small paintings and the picture postcard in the 1890s.
21st Century
 The Brits are one of the BIGGEST SPENDER on souvenirs over £1.2
billion annually.
 The World’s LARGEST GIFT SHOP in Las Vegas is as big as 3 Olympic
sized Swimming Pools.
 It is CUSTOMARY for Japanese travelers to buy OMIYAGE, gift-packed
edible souvenirs for friends and colleagues. They usually allocate ½
suitcase of space for these.
The word 'souvenir' is actually a French word meaning remembrance
or memory. Souvenirs are also referred to as keepsakes or mementos and
can be any item that somebody keeps for the memories it brings back.
Many people like to take a little something home with them as a
reminder of their travels, something to show for where they have been,
something they can use to look back and reminisce about the fantastic
experience they had during their holiday. After all, buying souvenirs is part
TATAK KAPAMPANGAN 5
and parcel of the fun holiday experience. Tourists also tend to take lots of
gifts and novelties back home for friends, relatives and work colleagues.
Pampanga
Pampanga was one of the richest province in the Philippines during the
Spanish regime. Even Manila and surrounding regions were then very much
dependent on Pampanga's agricultural, fishery, and forestry products as well
as on the supply of skilled workers and breed of courageous, intelligent,
spiritual, and artistic nation builders. Up to this day, Pampanga, the place, its
people, and their passions continue to make an indelible mark on the
country's unfolding social, cultural, and economic tapestry.
No wonder that Pampanga is rich with picturesque landscape and
clean environment that attract local and foreign vacationers and tourists
year-round to the province's many nature and recreation parks, such as the
Arayat National Park and its picnic and swimming facilities, the Candaba
swamps for migratory bird watching, the rugged natural terrains of Porac,
and the breathtaking hot spring scenery in Sapangbato, Angeles City. This is
not to say, though, that Pampanga is not without modern recreational
amenities, for it houses, a booming night life and cosmopolitan haunts like
world-class hotels, resorts, casinos, duty free shopping malls and golf
courses.
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Based on the visitor statistics of the Department of Tourism, the
estimated number of tourists that visit Pampanga yearly for the past 5 years
(Cark, Angeles and San Fernando) is: 2013 - 1,054,363; 2014 - 1,412,714;
2015 - 1,414,809; 2016 - 1,610,096; partial tourist arrivals of 2017 - 801,089.
Based on the given data, tourism in Pampanga is obviously improving with
the increasing number of tourist arrivals in the province. This is a good
indicator that businesses such as a souvenir shop is in demand in the
province.
Industry Analysis
Souvenir is an important component of the travel experience and
most tourists return home with souvenirs to preserve and commemorate
such experiences. These souvenirs serves as a badge of honor that
indicates that the person has already made that journey or visited a certain
place. Souvenirs might take the form of T- shirts, antiques, authentic
handcrafted items, key chains, miniature replicas of landmarks, or various
other objects. Producing, selling and buying souvenirs are routine activities
of tourist destinations that generate a lot of profit each year.
Shopping is said to be the most universal of all tourist activities and a
tremendously important leisure pursuit. Although it is seldom mentioned as
the primary reason for travel, shopping has a huge contribution when it
comes to financial impact on local tourist shop. Now, shopping is recognized

TATAK KAPAMPANGAN 7
as one of the major activities of tourists; it is often the most significant
expenditure category on their vacations and trips.
While souvenirs and shopping industry has expanded, the idea of
souvenir shop exists. Souvenir shops have long been a nice business ideas
here in the Philippines. Since the Filipinos are naturally fond of giving gifts or
“pasalubong” and the Philippines welcome a lot of tourist who are also
looking for something to bring back to their home, these shops thrive well.
Souvenir shop is a store primarily selling souvenirs relating to a particular
topic, place and theme. The items sold often include stuffed toys, coffee
mugs, postcards, T- shirts, handmade collections and other souvenirs.
Souvenir shops are normally located in area visited by many tourists.
Venues such as zoos, aquariums, national parks, theme parks, and
museums have their own souvenir shops, in some cases these shops sell
items of higher value than souvenir shops not associated with a venue.
Tourism in the Philippines is a major economic contributor to the
Philippine economy. The tourism industry is recognized by the government
as an important contributor to the generation of foreign exchange earnings,
investments, revenue, employment, and to the growth of the country’s
output. In the tourism industry, the Philippines has timeless competitive
advantages. It is near North Asia, which is composed of the rich sources of
tourists: China, Taiwan, Japan, South Korea, and Hongkong. The

TATAK KAPAMPANGAN 8
opportunities that tourism presents encourage entrepreneurship and
stimulate business including souvenir shop businesses.
Slowly but surely, the tourism industry is becoming the third growth
engine in the service sector, after remittances from overseas Filipino
workers. Tourism Secretary Wanda Teo announced that the figures for
foreign visitors in the first two months of 2017 show encouraging signs that
the target of 7 million foreign tourists for the whole of 2017 is attainable.
There were 631,639 foreign arrivals in January, and 579, 178 in February,
half of them from South Korea and the United States. These figures for the
first two months of 2017 already represent 17.30 percent of the targeted 7
million visitors. At the end of year 2017, tourism statistics tallied 2,349,980
foreign visitors in the country. This year, we welcomed 2,640,231 during the
first four months of 2018. Really, businesses related to tourism industry are
becoming more and more in demand as of this year.
Shopping in terms of souvenir is one of the distinctive reasons why
people travel to other places. It is the nature of humans, to have some form
of item representing where they have travelled. That’s why, as the number of
tourist increases in the Philippines, the demand for souvenir shops also
increases. During vacation and trips, tourist will spend money in terms of
entertainment, accommodations, transportations, other services and
shopping. In that case, souvenir shops can grab that opportunity to promote
TATAK KAPAMPANGAN 9
the handicraft industry and all the best things that the specific place can
offer.
In order to maintain a competitive advantage, it is important for shops
to be unique and offer items not found in other shops. Trends develop from
one year to the next that determine what the market is after and in what
ways these products should be marketed. In order for souvenir shops to be
more competitive, they must also know what the trends are for them to
decide what products to sell that will be in demand for the tourists.
PEST Analysis
Political: Republic act no. 9593. An act declaring a national policy for
tourism as an engine of investment, employment, growth and national
development, and strengthening the department of tourism and its attached
agencies to effectively efficiently implement that policy, and appropriating
funds therefore.
Section 4. Definition of Terms
(p) "Tourism enterprises" refers to facilities, services and attractions involved in
tourism, such as, but not limited to: travel and tour services; tourist transport
services, whether for land, sea or air transportation; tour guides; adventure
sports services involving such sports as mountaineering, spelunking, scuba
diving and other sports activities of significant tourism potential; convention
organizers; accommodation establishments, including, but not limited to, 7

TATAK KAPAMPANGAN 10
hotels, resorts, apartelles, tourist inns, motels, pension houses and home
stay operators: tourism estate management services, restaurants, shops and
department stores, sports and recreational centers, spas, museums and
galleries, theme parks, convention centers and zoos.
Economic: Pampanga is strategically located right at the heart of
Central Luzon and the Asia Pacific Region. It is only 60 kilometers away
from Metro Manila, the country’s capital and about 3-4 hours away by air to
major Asian cities like Singapore, Hong Kong, Taiwan and Bangkok.
Pampanga’s current development is being propelled by its thriving
base of micro, small and medium enterprises (MSMEs) which demonstrate
the innate ingenuity and craftsmanship of the Kapampangans with products
that have already carved a niche in the global market. These SMEs are
mostly involved in the manufacture and export of furniture and furnishings,
ceramics, garments, gifts and holiday decors. Pampanga has also made its
mark in the food sector specifically the processed meat products - tocino,
longganisa, hotdog and ham; and sweets and delicacies pastillas, marzipan,
turrones de casoy, pulvoron and tabang talangka. Likewise, a growing
amount of investments continue to pour in the provinces economic zones
and industrial estates led by the Clark Freeport Zone.
Aside from having a strong and robust MSME sector, Pampanga is
also being promoted as one of the key investment destinations in the
country. Capitalizing on its strategic location and excellent infrastructure

facilities which include the Diosdado Macapagal International Airport and the
Subic-Clark Tarlac Expressway, it is being positioned as a logistics and ICT
hub, with the Clark Freeport Zone as anchor. These statements are
according to the Department of Tourism Philippines.
Sociological: According to an article of Inquirer News published in
2015, every country has its differing values and stereotypes, and the
Philippines is no exception. Filipinos firmly believe that this country has the
best values in the world. Although we have been colonized by several
countries, many core values from our ancestors remained intact and are still
honored to this day.
Hospitality is one of the most popular qualities of Filipinos. Foreigners
who have gone to the Philippines find themselves falling in love with the
warm hospitality they are shown. It's a different kind of value system, which
has existed for thousands of years. Filipinos are fond of giving gifts and
offering something to families, friends, and even to visitors. Because of this
generally warm nature of Filipinos, the tradition of gift giving in the
Philippines is as varied and diverse as the number of islands it has.
It is also a common tradition in the Philippines for one to bring food
during gatherings. No matter what kind of gift you give, the most important
protocol to follow is that your token has sincerity written over it. Gifts given
with such intentions are more meaningful and are greatly appreciated by the
host.
Technological: In the Entrepreneur site, Technology has an effect on
the tourism industry and demand for travel and tourism. The technology that
the Philippines have right now led to an entirely new rage of tourist activities.
The attractive cars, trains, malls, and the entertainment centers are only a
few result of technology growth.
As technology changes business to consumer transactions, new
opportunities for both sides of the sphere are emerging. Consumers now
have access to a range of tools that help them gauge prices, find
alternatives, locate stores and receive coupons. Businesses including
souvenir shops are seeing benefits as well, as technology helps them make
stronger connections with customers and build their brands faster.
Technology is now use by many businesses to attract customers.
Internet and social media are being use also to help promote such business
reducing the cost of advertising. Also, technology through business is also
most needed. We can do business through emails, talking to business
supplier or business associate through video call, using a digital network for
the weather updates, and using social media interaction by Facebook,
Twitter, Email, and other Google accounts. You can order so many things
using a computer with the internet of course.

Description of the Proposed Project
A souvenir is defined as a tangible object saved or kept as a reminder of
a particular event or journey. It is a tangible piece of an extraordinary time.
Tatak Kapampangan intends to provide this objects/items to tourists. The
project also aims to help in promoting products of Pampanga not just for
local tourist but also tourist from abroad by having a souvenir shop that will
be located at the capital of Pampanga.
This souvenir shop, Tatak Kapampangan, will sell unique souvenir
items and products that are well-known in Pampanga. Souvenirs like bags,
shirts, wallets, key chains and mugs that features design from different
festivals that are celebrated in Pampanga. Some of these festivals are
Ligligan Parul or The Giant Lantern Festival of San Fernando, Ibon Ebun
Festival of Candaba, and Hot Air Balloon Festival of Lubao. Proud products
of Aetas from Porac will also be available for those tourists who are
interested with items made of bamboos and woods like trays, piggy bank,
medicine cabinet and wind chime. Since it is not every day that tourists get
the chance to visit Pampanga, TK intend to save their memories in the
province by the products that it offers. The souvenirs will be a reminder for
them of the special moments or events that they’ve experienced while they
are here in Pampanga.

Tatak Kapampangan is planning to have booths in every festival or
events like in Laus Group Event Center. Since these are the primary reasons
why tourists visit Pampanga, it is the best way to catch them. It will also be a
good chance to introduce the shop and be well-known for tourists that come
and planning to come in the province. This will also encourage the people
who live in Pampanga to patronize their own product.
Company Name and Logo
“Tatak Kapampangan” means mark of people in Pampanga. The
proponents choose that name because they intend to provide souvenir items
that hold the memories and experiences of tourists in Pampanga and serve
as a reminder of the place. Pampanga is best known for its cuisine, earning
for the province the appellation, The Culinary Center of the Philippines.
Aside from being the culinary capital, the proponents also wanted to promote
the province more through souvenirs wherein once a person see that
particular product, they will easily know that it was from Pampanga. That’s
the reason why Tatak Kapampangan is a suitable name for the shop.
Figure 1.1 Company Logo
The background of the logo is the map of Pampanga which has different
colors to show how colorful the province is in terms of culture and festivals.
It represents the wide range of designs where the products and items are
inspired of. It uses red as the color of its name since Pampanga is known as
the Christmas Capital of the Philippines. The stars are reminders of the
famous lanterns of the City of San Fernando where the store is situated.
Description of Location and Vicinity Map

Figure 1.2 Vicinity Map
The Store is located at RRK Bldg. Jose Abad Santos Avenue, Dolores,
and City of San Fernando Pampanga. It is in the middle of Susie’s Cuisine and
China Bank Savings. This is the best location for a souvenir shop since it is
along the highway and can be easily seen. Malls and event’s centers are also
nearby the store which is great since its target market are the tourists or visitors
of Pampanga. It is also a good thing that we are next to Susie’s cuisine since
their customers could also visit and purchase in the store after eating. The
place is also convenient for the customers since it can be easily seen and
mode of transportation is available. There is no way for customers to be lost.
They can arrive in the store easily whether through public or private
transportation.
Corporate Vision, Mission and Objectives
Vision Statement
Our vision is to be the face of Pampanga in promoting kapampangan
culture and festivals through quality products that represents the
experiences and memories of customers in the province.

Mission Statement
Our mission is to provide an avenue that showcases the ingenuity and
creativity of Kapampangans.
Objectives
Marketing Objectives
 To establish a constant market share for the next 5 years of the
business.
 To promote the Kapampangan products/goods and its festivals and
culture.
Production / Operational Objectives
 Maximize the use of company resources.
 To minimize time in the production of the products.
 To increase the units of production without increasing cost.
Financial Objectives
 To achieve a return of investment in less than 5 years from the
commencement of the business.
 To attain an annual 5 percent growth in profit margin.

CHAPTER II ORGANIZATION AND MANAGEMENT STUDY
Introduction
Organizing is a process of determining the activities necessary to
achieve the objectives in the most economical, efficient and effective
manner. It structures the relationships among roles, which create and ensure
the effective operation of the total system. Under organizing, all the activities
are subdivided into various works or jobs. For all the sub-works, competent
people are appointed who become experts by doing a particular job time and
again. In this way, maximum work is accomplished in the minimum span of
time and the organization gets the benefit of specialization. Also, organizing
is the clarification of the working relations among employees. It specifies
who is to report to whom. Therefore, communication is vital to delegate
authority and to fix accountability.
Type of Business Organization
The business organization will be formed as a Partnership. This type
of organization features two or more partners in which each partner is liable
for any debts taken on by the business and there will be an equal sharing of
profits among the partners. All proponents asset can be involved in an
insolvency case against the company.

The partners will fund the Shop with the startup capital and that
means an increase in the amount of money to be put into the business since
each of them will contribute. Another advantage of this kind of business
organization is that it is less regulated by the government in terms of
governing laws. More partners means more skills and more ideas to be
contributed in the success of the business.
ARTICLES OF PARTNERSHIP
OF
TK Manufacturing Co.
KNOW ALL MEN BY THESE PRESENTS:
That we, the undersigned partners, all of legal age, residents
and citizens of the Philippines, have on this day voluntarily associated
ourselves together for the purpose of forming a general partnership under
the following terms and conditions and subject to existing and applicable
laws of the Republic of the Philippines:
AND WE HEREBY CERTIFY:
That the name of this partnership shall be “ TK
Manufacturing Co.” and shall operate and transact business under the said
company name.
II
That the purposes for which this partnership is formed are: To provide
quality items to customers to promote the products of Pampanga and to
recognize profit.
III
That the principal place of business of this partnership shall be located
at: RRK Building, Jose Abad Santos Avenue Dolores, City of San Fernando,
Pampanga.
IV
That this partnership shall have a term of 50 years from and after the
original recording of its Articles of Partnership by the Securities and
Exchange Commission.
That the names, nationalities and complete residence addresses of
the partners are as follows:
Name Nationality Complete Residence Address

Kate M. Isip Filipino Blk. 38 Lot 11 McArthur

Highway, St. Dominique Villa,
San Agustin, San Fernando
Pampanga
Lemuel Jeremiah S. Filipino #344 Dalan Bayu, San
David Matias, Guagua, Pampanga
Mark Anthony L. Filipino #35 Purok 2, San Basilio, Sta.
Serrano Rita, Pampanga
Kevin R. Musni Filipino #104 Purok 3, San Jose,
Floridablanca, Pampanga
VI
That the capital of this Partnership shall be the amount of two million five
hundred pesos (₱2,500,000), Philippine Currency, contributed in cash by the
partners, as follows:
Name Amount Contributed

Kate M. Isip ₱ 625,000 Th
Lemuel Jeremiah S. David ₱ 625,000
at no
Mark Anthony L. Serrano ₱ 625,000
Kevin R. Musni ₱ 625,000
transfer of interest which will reduce the ownership of Filipino citizens to less
than the required percentage of capital as provided by existing laws shall be
allowed or permitted to be recorded in the proper books of the partnership.
VII
That the profits and losses of this partnership shall be divided and
distributed proportionately on the ratio of the capital contribution of each
partner.
VIII
That this partnership shall be under Lemuel Jeremiah S. David, as
General Manager, who shall be in charge of the management of the affairs
of the company. He shall have the power to use the partnership name and
in otherwise performing such acts that are necessary and expedient in the
management of the firm and to carry out its lawful purposes.
IX
That the partners undertake to change the name of this partnership,
as herein provided or as amended thereafter, immediately upon receipt of
notice or directive from the Securities and Exchange Commission that
another corporation, partnership or person has acquired a prior right to the
use of that name or that the name has been declared as misleading,
deceptive, confusingly similar to a registered name, or contrary to public
morals, good customs or public policy.

IN WITNESS WHEREOF, we have hereunto affixed our signatures
this 5th day of September, 2018.
Kate M. Isip Kevin R. Musni
Lemuel Jeremiah S. David Mark Anthony L.
Serrano
A C K N O W L E D G E M E N Ta
REPUBLIC OF THE PHILIPPINES
(S.S.)
Before me, a Notary Public, for and in ___, this___ day of ___, 20___,
personally appeared the following persons:
Name TIN/ID/Passport Date and Place

No. Issued
Kate M. Isip EB7123456
Lemuel Jeremiah S. David EB1759638
Mark Anthony L. Serrano EB2359874
Kevin R. Musni EB6579826
Known to me and to me known to be the same persons who executed
the foregoing Articles of Partnership constituting of __ pages, including the

page where the acknowledgement is written, and they acknowledged to me
the same that the same is their free and voluntary act and deed.
Organizational Chart
Job Descriptions and Classifications
GENERAL MANAGER
Job Description
 Increase management’s effectiveness through active listening with both
superiors and subordinates as well as strong written communication
skills
 Ensure the creation and implementation of a strategy designed to grow
the business
 Prioritize tasks to ensure that works are completed by deadlines,
streamline processes to maximize productivity
 Find opportunities to resolve conflicts efficiently and favorably
 Weigh the costs and benefits of various options to determine the best
course of action to achieve company goals
 Analyze past and current performance and recommend objectives to
improve productivity and profitability
Job Specifications
 Graduate of any course in relation with Management
 28 years of age or above
 At least 3 years of responsible leadership experiences in management
 Excellent organizational management skills
 Good communication skills
 A goal oriented person

ACCOUNTANT
Job Description
 Prepare the payroll collateral reporting (Financial Statements)
 Ensure that statements and records comply with laws and regulations
 Compute taxes owed, prepare tax returns, ensure prompt payment
 Inspect account books and accounting systems to keep up to date
 Organize and maintain financial records
 Ensure timely submission, accuracy and validity of inventory
 Suggest ways to reduce costs, enhance revenues and improve profits
Job Specifications
 Certified Public Accountant
 Ability to perform essential functions of the job; applying Generally
Accepted Accounting Principles and Cost Accounting Standards
 Ability to work independently under minimum supervisions
 Skilled with accounting systems
 With good communication and interpersonal skills
PRODUCTION MANAGER
Job Description
 Plan and organize production schedules

 Determine quality control standards
 Oversee production processes
 Select, order and purchase materials
 Organize the repair and routine maintenance of production equipment
 Ensure that the production is cost effective
 Liaise among different departments, e.g. Suppliers, managers
 Work with managers to implement the company's policies and goals
 Ensure that health and safety guidelines are followed
Job Specifications
 Degree in business or manufacturing management or other related field
 Must be able to handle responsibility and the pressure of meeting the
deadline.
 With leadership and interpersonal skills
 Organization and efficiency
 Problem solving skills
SALES AND MARKETING MANAGER
Job Description
 Promote and manage the brand
 Oversee budgets for advertising, marketing, and promotions

 Monitor competition
 Generate new ideas for customer incentives and accommodation or
business packages and other sales and marketing duties
 Generate new ideas for new designs of products
Job Specifications
 Degree in Marketing or a related field required
 28 years of age or above
 Strong effective communicator
 Expert in the internet and social media strategy with a demonstrated
track record on Facebook, Twitter, and other social media outlets that
are significant in company outreach.
 Think creatively to come up with exciting new campaigns
 A high degree of technical knowledge balanced with creative ability and
a hands-on approach.
 Visual, commercial and spatial awareness.
 Computer literacy including three-dimensional conceptual ability and cad
(computer-aided design)
 Knowledge of industrial processes, techniques and standards
CASHIER
Job Description
 Receive payment by cash or credit card
 Issue receipts, refunds, credits or change due to customers
 Count money in cash drawer at the beginning of shifts to ensure that
amounts are correct and that there are adequate change
Job Specifications
 With basic Computer knowledge and familiarity with electronic
equipment
 Strong communication and time management skills
 Customer satisfaction oriented
 With attention to detail and mathematical skills
SALES CLERK
Job Description
 Responsible with Greeting customers, responding to questions,
improving engagement with merchandise and providing outstanding
customer service
 Increase in store sales
 Maintain an orderly appearance throughout the sales floor
 Direct customers to merchandise within the store
 Cross-sell products to increase purchase amounts
Job Specifications
 With an associate’s degree or high school diploma
 With retail sales experience
 With a professional appearance
 Maintain a positive attitude
 With the ability to read, write and perform basic math
 With the ability to stand and walk for extended periods of time
MACHINE OPERATOR
Job Description
 Operate keychain maker machine
 Prepare assists machines for production

 Oil and clean the presses and make minor repairs
 Perform preventive maintenance
Job Specifications
 Superior knowledge of keychain maker machine adjustment and control
 High time management and organization abilities
 Good verbal and written communication skills
QUALITY INSPECTOR
Job Description
 Documents inspection results by completing reports and logs,
summarizing re-work and waste; inputting data into quality database
 Maintains safe and healthy environment by following standards and
procedures and complying with legal regulations.
 Responsible for a final inspection
Job Specification
 Has good communication skills
 Observant and detail oriented
 Has experience in doing such function

PRINTING STAFF
Job Description
 Primarily in the printing section to communicate with the production
designer for the printing of bags, wallets and T- shirts.
 Focuses on the printing process of the factory.
 Answers inquiries about the printing process, if there are errors or
mistakes done.
 Guide the process of printing each product from start to end
Job Specification
 18 years old and above
 Male
 Has enough knowledge of the printing methods
 At least with one year experience in the printing field
SEWING STAFF
Job Description
 Primarily to cut, trim and sew wallets and bags.
 Sew bags and wallets with a sewing machine or by hand as the design
and material requires like edges and linings.

 Fit, alter, and repair according to the desires of the quality inspector if it
doesn’t achieve the quality needed.
Job Specification
 18 years old and above
 Responsible individual
 Willing to undergo training
 Has the eagerness to work
POLISHER
Job Description
 Overall responsible on polishing the key chains
 Ensure that standards are being met.
 Polish items as required using appropriate machinery and to appropriate
finishes.
Job Specification
 Preferably Male
 At least 21-30 years old
 At least high school graduate
 2-5 years’ experience in polishing

PACKAGER
Job Description
 Works in factory to put together packages
 Assemble packaging boxes and label
 Record what is packed
 Inspect packaging for tears and cracks
 Make sure the materials inside are packed in a way to minimize
breakage during transit
 Move completed and sealed packages to loading dock for transit
Job Specification
 At least a high school graduate
 With listening skills
 With strength and stamina
JANITOR
Job Descriptions
 Must have the knowledge on how to repair lights, fixtures and other
equipment.
 Responsible for maintaining the cleanliness and order of the building
within the premises.
Job Specifications
 Must be in good health.
 At least high school graduate
 Must be hardworking and honest
SECURITY GUARD
Job Descriptions:
 Stop suspicious people and ask for identification.
 Call police or fire departments in cases of emergency such as the
presence of unauthorized persons or fire.
 Inspect the factory where manufacturing are being held and also the
store to ensure the safetiness of people inside.
 Check the rooms and store to ensure that locks are in place before
leaving the place.
 Monitor and adjust controls that are being regulated building system
such as air conditioner.

 Monitor and authorized admission and departure of all employees,
visitors and other guest to guard against thieves and maintain security
premises.
Job Specifications
 Must be in good health.
 Knowledge in security techniques and procedures.
 Must have security license.
 Ability to handle typical and crisis situation effectively and efficiently at
work.
 Must have experience as a security guard for a year or 2; also have the
training and knowledge which provide skills and abilities to perform the
duties of the said position.
DRIVER
Job Description
 Conduct inspections of vehicle before departing to deliver products
 Deliver the products safely to the store
 Bring the supply of products on time
Job Specifications
 With driver’s license and clean driving record
 Good eyesight, hearing, and physical condition
 Neat appearance, well spoken, courteous, and work well with little
supervision
Management Policies and Compensation and Benefits
Policies
Every employee must come on time to work. The employees who have
three (3) consecutive absences without leave will be subject to
disciplinary actions.
All employees must notify their superiors for their absences or late
arrival.
All employees must wear their proper uniforms while on duty.
Every employee must do his duties and responsibilities assigned to him
to meet the required level of quality work set by the company.
All personal belongings of every employee will be inspected by the guard
on duty upon entering and before leaving the business premises to avoid
theft.
Confidential information is considered a company secret that must not
be divulged. It must never be discussed outside the business. It should
be held in strict confidence.
Strictly discourages inappropriate behavior from employees and
supervisors in regard to the race, gender, sexual orientation or religious
and cultural beliefs of another person within the business premises.
All employees are prohibited to carry or use drugs, alcohol and
cigarettes during work hours, on company property or during company
functions.
Compensation and Benefits
Compensation
The officers and employee's salary are:
Monthly
Position Annual Salary
Salary
General Manager ₱ 18,500.00 ₱ 222,000.00
Accountant 18,000.00 216,000.00
Production Supervisor 17,500.00 210,000.00
Sales and Marketing
17,000.00 204,000.00
Supervisor
Sewing Staff 1 10,400.00 124,800.00
Sewing Staff 2 10,400.00 124,800.00
Machine Operator 10,300.00 123,600.00
Printing Staff 1 – Shirt 9,984.00 119,808.00
Printing Staff 2 – Shirt 9,984.00 119,808.00
Printing Staff 3 -
9,984.00 119,808.00
Wallets/Bags/Mugs
Quality Inspector 9,923.00 119,076.00
Cashier 9,500.00 114,000.00
Sales Clerk 1 8,000.00 96,000.00
Sales Clerk 2 8,000.00 96,000.00
Polisher 1 – Keychains 7,600.00 91,200.00
Packager 1 -
7,500.00 90,000.00
Wallets/Mugs/Shirts/Bags
Packager 2 -
7,500.00 90,000.00
Wallets/Mugs/Shirts/Bags
Packager 3 - Keychains 7,500.00 90,000.00
Driver 7,000.00 84,000.00
Janitor 1 7,000.00 84,000.00
Security Guard 1 6,500.00 78,000.00
Security Guard 2 6,500.00 78,000.00
Total ₱ 235,575.00 ₱ 2,826,900.00
Table 2.1 Compensation
Company Benefits
The officers and employees are also subject to various benefits such as:
1. Overtime Pay
All employees are required to work eight hours a day and beyond the
normal working hour shall be entitled to overtime pay. Work may be
performed beyond eight hours a day provided that the employee is paid for
the overtime work, which consists of an additional compensation equivalent
to his regular wage plus at least 25% thereof.
Work performed beyond eight hours on a holiday or rest day shall be
paid an additional compensation equivalent to the rate of the first eight hours
plus at least 30% thereof.
On a Special Non-Working day, or rest day, an additional
compensation of 30% premium will be paid in addition to the rate of the first
eight hours on holiday or rest day.
2. Night Shift Differential Pay
Every employee shall be paid a night shift premium of not less than
10% of their regular wage for each hour of work performed between 10:00
PM and 6:00 AM.
3. Holiday Pay
The Labor Code requires the payment of an employee’s daily wage
for all non- working holiday. Employer may require an employee to work on
any holiday but such employee shall be paid a compensation equivalent to
twice his regular rate. Work performed beyond eight hours on a holiday or
rest day shall be paid an additional compensation equivalent to the rate of
the first eight hours plus at least 30% thereof.
On a Special Non-Working day, or rest day, an additional
compensation of 30% premium will be paid in addition to the rate of the first
eight hours on holiday or rest day.
The following are the list of Holidays based on Proclamation No. 269,
s. 1 declared by the Malacañang.
Regular Holidays
New Year’s Day 1 January
Maundy Thursday 29 March
Good Friday 30 March
Araw ng Kagitingan 9 April
Labor Day 1 May
Independence Day 12 June
National Heroes Day 27 August
Bonifacio Day 30 November
Christmas Day 25 December
Rizal Day 30 December
Table 2.2 Regular Holidays
Special Holidays
Chinese New Year 16 February
EDSA 25 February
Black Saturday 31 March
Ninoy Aquino Day 21 August
All Saint’s Day 1 November
Last Day of the Year 31 December

Table 2.3 Special Holidays
4. 13th Month Pay

Under Presidential Decree No. 851, employers from the private
sector in the Philippines are required to pay their rank-and-file employees a
Thirteenth 13th Month Pay not later than December 24 every year. The 13th
month pay is equivalent to one twelfth (1/12) of an employee’s basic annual
salary.
It is prescribed by Philippine labor laws as a mandatory benefit
and should not be confused with the “Christmas bonus” commonly practiced
in the local business setting. The Christmas bonus is not a demandable and
enforceable obligation, and can only be released upon an employer’s
voluntary discretion. It is usually granted by employers to show appreciation
and gratitude for the service rendered by their employees within a year. The
13th month pay, on the other hand, is required by law and employers who
fail to provide them by the end of the year are subject to legal scrutiny by
the Department of Labor and Employment (DOLE).
5. Leaves
A. Maternity Leave
Any pregnant woman employee who has worked with the company
for at least six months will be granted a maternity leave of at least two weeks
prior to her due date (expected date of delivery) and four weeks after normal
delivery or miscarriage with full pay based on her regular salary.

A total of 60 days is granted for government employees, and 60 to 80
days for employees in the private sector.
The Maternity Leave benefit is effective up to the first four deliveries
of the woman employee working in the company.
However, Senate Bill 2982, or the Expanded Maternity Leave Law of
2015, has been approved on its third (3rd) reading on January 18, 2016. If
enacted into law, will grant 100 days of maternity leave for employees in the
government and private sector, regardless of the type of delivery.
B. Paternity Leave
The R.A No. 8187, or Paternity Leave Act of 1996, grants seven days of
fully paid leave to married fathers. This is effective up to the first four
deliveries of the legitimate spouse.
C. Sick Leave
Employees who can’t report to work due to sickness or disability or
have family members who are ill and need to be taken care of can apply for
sick leave. Usually, sick leave is equivalent to fifteen days and can be
converted to cash by the end of the year.
D. Vacation Leave
An employee who has served the company for at least one year shall
be permitted to file three (3) days’ vacation leave with pay. To avail the
leave, an employee must file the leave one week before the actual date.
E. Service Incentive Leave

Every employee who has rendered at least one year of service shall
be entitled to a yearly service incentive leave of five days with pay.
This provision shall not apply to those who are already enjoying the
benefit herein provided, those enjoying vacation leave with pay of at least
five days and those employed in establishments regularly employing less
than ten employees or in establishments exempted from granting this benefit
by the Secretary of Labor and Employment in the Philippines after
considering the viability or financial condition of such establishment.
F. Social Security System (SSS)
Republic Act No. 8282, otherwise known as the Social Security Act of
1997, refers to the social security system in the Philippines that is initiated,
developed and promoted by its Government. The social security system is
aimed at providing protection for the SSS member against socially
recognized hazard conditions, such as sickness, disability, maternity, old age
and death, or other such contingencies not stated but resulted in loss of
income or results to a financial burden.
The employee and his/her employer(s) are to contribute for the social
security benefits of the said employee in accordance to a given schedule by
the Philippine Social Security System. Monthly employee contribution
depends on the employee's actual monthly salary.
The SSS benefit’s includes:

Sickness Benefits
Maternity Benefits
Retirement benefits consisting of monthly pension to the primary
beneficiaries
Disability benefit, either partially or totally disabled, will be granted to a
cash benefit.
Beneficiaries of deceased member will be granted a cash benefit either
on monthly compensation or lump sum
7. PHILHEALTH
The employee and his/her employer(s) are to contribute for the medical
insurance of the said employee in accordance to the Republic Act 7835 on
Medicare Program which is administered by the Philippine Health Insurance
Corporation (PhilHealth). Monthly employee contribution depends on the
employee's actual monthly salary. The contribution schedule is provided by
PhilHealth.
8. Home Development Mutual Fund (PAG-IBIG)
The employer(s) is required to contribute per month not less than
P100.00 to the employee's Home Development and Mutual Fund. In
accordance to the periodic remittance schedule provided by HDMF, the
employer(s) will remit this contribution, in addition to that of the employee's,
which is to be deducted from his/her payroll.

9. Meal and Rest Periods
Under Article 83, the employee is provided a one-hour employee
benefit for regular meals, when working on an eight (8 hour) stretch.
Employees are also provided adequate rest periods in the morning and
afternoon which shall be counted as hours worked. Every employer is
mandated by the Labor Code to give their employees not less than sixty (60)
minutes’ time-off for their regular meals. During day shifts, this time-off is
usually during 12:00 PM.
Policy Brief & Purpose
This Employee Code of Conduct company policy outlines the
expectations regarding employees’ behavior towards their colleagues,
supervisors and overall organization. The company will promote freedom of
expression and open communication, but they will expect that all employees
will follow the Code of Conduct. The company also expect them to cultivate a
well-organized, respectful and collaborative environment.
Scope
This policy applies to all Tatak Kapampangan employees regardless of
employment agreement or rank.
Employee Code of Conduct

Tatak Kapampangan and its people create this Employee Code of
Conduct to represent their core values and principles that have been the
foundation for the development and success of the business. Employees are
required to follow this Code of Conduct while performing their duties.
The company outline their Code of Conduct below:
Compliance
 All employees must protect the company’s legality.
 Employees should be ethical and responsible when dealing with the
company’s finances, products, partnerships and public image.
 Manage the business in accordance with the Philippine laws, rules and
regulation.
 Strictly and consistently follow the standards and restrictions set by the
company’s policies and procedure.
 Ensure compliance with all disclosure requirements, making sure all
disclosure of material information is full, fair, accurate, clear and timely.
Objectivity
 Deal fairly with the customer, suppliers, colleagues and government.
 Treat with everyone with respect and act in good faith and with integrity
and sense of professionalism at all times.
Confidentiality
 Takes the protection of trade secrets and confidential business
information very seriously. Members, employees and workers shall not
disclose or communicate any confidential business information of the
company to any person or entity other than Tatak Kapampangan for any
purpose or reason other than the benefit of the company
Integrity
 A commitment to having courage to stand up or what is right and ethical
even when no one is looking, saying no when appropriate, exercising
honesty at all times, owing up the truth, and doing the right thing simply
because it is right.
Professionalism
 Do not use obscene, abusive language while inside the facility.
 Avoid spreading malicious gossip or rumors or perceiving inappropriate
comments directed to an individual related to the person’s gender,
sexual orientation, racial background, religion or physical disability.
 Do not be involved any fight inside the company premises.
Protection of Company Property
 All employees should treat the company’s property, whether tangible or
intangible, with respect and care.
 Employees should not misuse company equipment.

 They should respect all kinds of incorporeal property and should use
them only to complete their work.
 Employees are treated to behave responsibly and use good judgment to
conserve company resources. Company resources, including time,
material, machineries, and information should be utilized for company
use only. Occasional personal use is permissible as long as it does not
affect the job performance, cause a disruption to the workplace, or result
in an expense to the company.
Dress Code
 All employees must follow the dress code of the company.
 They are expected to dress neatly and exercise common sense in
selecting clothing and footwear appropriate for the business
environment.
 Hair should be neatly groomed and worn in businesslike style.
Company Security
 The company is committed to maintain a safe and secure workplace. In
order to maintain a secure work environment, the company strictly
prohibits employees and visitors from bringing any firearm inside the
company premises. In addition, all employees and visitors are asked to
check in with the security in duty. Failure to comply with the policy will
result in disciplinary action up to and including termination.

 In case of occurrence of accidents inside the workplace during
performance of duties, said rules and regulations and its proper
treatment will be based on the laws provided by the Philippines Labor
Code, if any is applicable. Otherwise decided by the management.
Avoid Conflict of Interest
 Must act in the best interest of the business.
 Shall not use material company information of which they have
knowledge or access for their personal advantage or to the advantage of
third person, to the prejudice of the business.
 Employees must avoid any personal, financial or other interests that
might hinder their capability or willingness to perform their job properly.
Communication
 Employees must be open for communication with their colleagues,
supervisors and managers.
Benefits
 The company expect employees to not abuse their employment benefits
like time off, insurance, facilities or other benefits that the company
offers.
Corruption
 The company discourage employees from accepting gifts from clients
and partners to avoid briberies for the benefit of any external or internal
stakeholders.
Job Duties and Authority
 All employees should fulfill their duties with integrity and respect towards
customers, stakeholders and the community.
 Supervisor and managers must not abuse their authority.
Absenteeism and Tardiness
 Employees should follow their schedules.
 They must be punctual when coming and leaving from work.
Drugs and Alcohol
 Any employee involved in the unlawful use, sale, manufacturing,
dispensing or possession of controlled substances, illicit drugs and
alcohol on the company premises or work sites, or working under the
influence of such substance, will be subject to disciplinary action up to
and including dismissal and referral for prosecution.
 NOTE: Fighting inside the company premises, with or without the
influence of these substances is prohibited. This may lead to dismissal of

one of the employee or both or the parties involved, depending upon the
decision of the management.
Insubordination
 Insubordination is not submissive to the authority; disobedient or
rebellious. It is the refusal of an employee to bow to the authority
exercised reasonably by employee’s superiors. Disciplinary action
will be taken into account.
Respect in the Workplace
 All employees should respect their co-workers.
 The company will not allow any kind of discriminatory behavior,
harassment or victimization.
 Insubordination applies only upwards and can only be perpetrated
by a junior towards a senior. Disrespect, on the other hand can
apply upwards and downwards. For example, it would be
disrespectful for a superior or employee of the same level to shout
to an employee.
 Disrespect is therefore not necessarily linked to a person’s position
of authority but can be linked to one’s human dignity.
Harassment
 The policy prohibits harassing behavior between co-workers,
supervisors, managers and factory workers. This type of harassment
and inappropriate behavior that violates harassment policies typically
include offensive jokes and negative stereotyping, inappropriate
nonverbal conduct; inappropriate physical conduct; and the sharing of
offensive visual images. Appropriate action should be taken into
consideration in accordance with the Philippine Labor Code.
Breaking of Company’s Trust
 Any form of deception, illegal or unethical acts detrimental to the
employment relationship, and then the issue of trust arises. The
employer is entitled to claim that, where an employee is found guilty of
dishonesty, the trust element of the employment has been damaged.
And the damage to the trust relationship is so bad that it is irreparable or
that the breach of trust, is automatically merit dismissal.
All employees should read and follow the company Code of Conduct.
Any individual who violates any of the aforementioned conduct will be
subject to disciplinary measures up to and termination without notice or pay
in lieu thereof. If they have any question, they should ask their managers or
Human Resource (HR) department.
DISCIPLINARY CODE AND PROCEDURE

The company has certain standards, rules and regulations to ensure
orderly behavior and to regulate the interaction between the employer and
employees. The disciplinary code and procedure is intended to provide a
framework of these standards, rules and regulations which ensures that
employees know and understand what the company is expecting from them
and what the employees can expect in terms of disciplinary action should an
employee transgress any rule or deviate from appropriate behavior. It is also
intended to ensure the effective functioning of the organization, to achieve
the set goals and objectives and to maintain effective discipline in the
workplace.
1st 2nd 3rd 4th

Description of Offenses
Offense Offense Offense Offense
A. Offenses relating to absenteeism and other time keeping obligations

Leaving company Written Final Dismissal
premises while on duty Warning Written
without authorization. Warning
Leaving place of duty Written Final Dismissal
while on duty without Warning Written
authorization. Warning
Unauthorized absence Written Final Dismissal
from wok without a valid Warning Written
reason. Warning
Loitering in the Written Final Dismissal
cloakrooms or on Warning Written
company premises while Warning
on duty.
Failing to report absence Written Final Dismissal
to company at the earliest Warning Written

possible opportunity. Warning
Bad time keeping such as Verbal Written Final Dismissal
late coming or leaving Warning Warning Written
work early. and/or Warning
counselin
g
Desertion – Absent from Dismissal
work for five or more
consecutive days without
valid reason.
Fraudulent timekeeping, Dismissal
such as clocking via
another employee or
allowing another
employee to clock one in.
B. Offenses relating to work ethnic and employee’s work obligations.

Negligence in carrying out Final Dismissal
duties. Written
Warning
Dereliction of duty. Final Dismissal
Written
Warning
Gross insubordination or Final Dismissal
insolence Written
Warning
Refusal to carry out lawful Final Dismissal
instruction. Written
Warning
Poor quality of work, or Verbal Written Final Dismissal
failing to maintain Warning Warning Written
company standards. and/or Warning

counselin
g
Poor work performance. Verbal Written Final Dismissal
Warning Warning Written
and/or Warning
counselin
g
Sleeping on duty. Final Dismissal
Written
Warning
Having financial or other Dismissal
interests in the business
or any interest in a
business which might
construed as a conflict of
interest, without written
authorization from the
company.
Failing to comply with Written Final Dismissal
company procedures. Warning Written
Warning
C. Offences relating to company property and assets.

Theft or fraud from or in Dismissal
respect of the company, a
fellow employee, patient,
supplier or visitor.
Intentional or grossly Dismissal
negligence damage to
company, visitors,
suppliers’, or employee’s
property or loss of
company property.
Poor maintenance or Final Dismissal
neglect of equipment, Written
material, or any company Warning
property.
Driving a company Dismissal
vehicle without authority.
Reckless or negligent Final Dismissal
driving on company Written
premises or use of Warning
company vehicle.
Removal of company Dismissal
property without authority
from the company.
Being in possession of Dismissal
company property without
authorization.
Excessive personal use of Written Final Dismissal
company telephones, Warning Written
email, or internet. Warning
Using company property Dismissal
without written authority.
Using company property Final Dismissal
for the distribution or Written
accessing of offensive Warning
material or information.
Accepting o giving or Dismissal
taking steps to acquire or
give gifts or money from
or to a supplier, customer
or employee which does
or could give the

appearance of being
capable of influencing
actions.
Disclosing company Dismissal
records or information of
a confidential nature
without authorisation.
Failing to report damage Written Final Dismissal
to company property, Warning Written
employees’, customers’ Warning
or visitors’ property
Immediately.
Industrial espionage or Dismissal
bribery.
D. Offenses of dishonesty.
Any dishonesty, including Dismissal
conspiracy, theft (or
attempted theft), fraud (or
attempted fraud), forgery
or giving false or
misleading statements to
the company or to
suppliers, employees or
persons having dealings
with the
Company.
Misappropriation of Dismissal
company property.
Changing a medical Dismissal
certificate or using a false
one.
E. Offences to the person or dignity of a fellow employee or any other

person the employee comes into contact with the course of his/her work.
Abusive or insulting Final Dismissal
language, signs or Written
behaviour. Warning
Serious disrespect, Dismissal
impudence or insolence.
Promoting or engaging in Dismissal
racist incitement of being
racially abusive or
engaging in
discriminatory behaviour
base on sex, creed,
political beliefs, sexual
orientation or the like,
including jokes of this
nature.
Harassment, including Dismissal
sexual harassment,
unsolicited sexual
behaviour, innuendo,
suggestion or gesture and
other inappropriate
behaviour of a sexual or
discriminatory nature.
Threat to employees, Dismissal
suppliers, customers or
visitors.
Assaulting a person or Dismissal
fighting with any person
or persons linked to the

company, whether on or
off company premises or
unruly behaviour.
F. Offense of intimidation.
Intimidating or inciting Dismissal
employees, including in
respect of unlawful work
stoppages.
G. Offenses relating to health and safety.

Creating or causing or Dismissal
allowing any condition or
situation at work that
could endanger the
general safety or health of
employees or other
persons or which caused
injury.
Failure to use protective Written Final Dismissal
clothing and/or equipment Warning Written
when required. Warning
Failure to carry out Final Dismissal
company health and Written
safety policies and Warning
procedures.
Smoking in a non- Final Dismissal
smoking area. Written
Warning
Failing immediately report Final Dismissal
an accident or injury on Written
duty. Warning
H. Alcohol or drug related offenses.

Under the influence of Final Dismissal
alcohol or drugs on Written
company premises. Warning
(Unauthorised).
In possession of alcohol Final Dismissal
or drugs not prescribed to Written
the possessor on Warning
company premises.
Unlawful distribution of Dismissal
alcohol or drugs on
company premises
I. Possession of dangerous weapons.

Being in possession of a Dismissal
firearm or dangerous
weapon on company
premises, unless
authorised by the
company in writing.
J. Breach of company security measures.

Being present in an area Final Dismissal
in which the employee is Written
not permitted. Warning
K. General Offence
Breach of confidentiality, Dismissal
whether in respect of
information regarding or
belonging to the company

or its customers.
Anti-competitive Dismissal
behaviour, engaging in
any form of anti-
competitive behaviour.
Distributing notices, Final Dismissal
posters etc. which may be Written
contrary to the interests Warning
of the company or
distasteful, or removing
or altering company
notices without the
company’s written
permission.
Abuse of company Final Dismissal
privileges Written
Warning
Unauthorised statements Final Dismissal
or comments to the press Written
or third parties regarding Warning
the company.
Table 2.4 Disciplinary Code
CHAPTER III MARKETING STUDY
Introduction
Marketing is one of the significant factors that is needed into account
forming a business. Its function is to provide information about the buyer’s
desires and needs in connection with the level of satisfaction to determine
demand in a particular residence. In addition, it is an essential process
throughout which companies generate value for customers so as to build
enhanced customer relationship in order to capture the amount of customer
satisfaction. This chapter discusses all the factors relative to the marketing
plan that the proponents have come up with. All materials and figures set
down in here are considered to be the starting point from which most of the
data in the following chapter will be based. Each section counts up to an
exhaustive analysis of the market to be delved into with the parameters
defined and all forces that influences it.
Target Market Description

Geographic Segmentation
The City of San Fernando is strategically located at the heart of
Central Luzon. One has to pass through the city to be able to go to any
provinces from all directions, be it north in Tarlac and Pangasinan, west in
Bataan and Zambales, east in Nueva Ecija and south in Bulacan on to Metro
Manila. Thus, it has established its role as the regional growth center, the
center of commerce and trade of the region. There are also major tourism
events in the city which also highlights its role as a tourism service center.
These are some of the places and festivals in Pampanga that are
visited by local and international tourists.
Places Festivals
Mount Pinatubo Giant Lantern Festival
The Sandbox Hot Air Balloon Festival
Zoocobia Fun Zoo Sinukwan Festival
Dinosaurs Island Duman Festival
Nayong Pilipino Aguman Sanduk Festival
Puning Hot Spring Cutud Lenten Rites
Fontana Water Park Caragan Festival
Table 3.1 Places & Festivals
Tatak Kapampangan’s target market are the local tourist from
different part of the Philippines and international tourists and businessmen
who visit Pampanga. Even if TK is a souvenir shop, it doesn’t mean that
residents of Pampanga or the kapampangans cannot buy its products. They

may also purchase the products to show that they are proud to be a
kapampangan or express their love for their own province.
The company plans to have a booth for every event or festival that are
celebrated in Pampanga and also in some event centers where concerts,
conferences or seminars are held in order to offer the products to its targeted
customers. This will help the brand to be more popular in the market and
well known for the products it offers.
Behavioral Segmentation
Research says that there are four types of tourists with different
shopping behavior:
 Ethnic, arts and “people” travelers, who were active tourists with an
interest in the culture and the people of the destinations they visited
and were particularly attracted to local arts and crafts;
 History and parks travelers, who were more interested in history and
nature and who sought souvenirs and local arts and crafts, as well as
printed materials that supported their interest in history and nature;
 Urban entertainment travelers, who were very active and especially
interested in nightlife and entertainment; this group purchased
souvenirs to display at home, and which often carried the logo of the
visited destination;
 Active outdoor tourists, who enjoyed a range of active, outdoor, nature-
based pursuits and who sought souvenirs associated with these
outdoor activities.
Tatak Kapampangan will produce products with different designs which
are suitable for customer’s taste and preference. These products are
available to all customers whether men or women, young or old.
Demand and Supply Analysis
Products Total Product preference Demand

Target of tourists
Market
T-shirts/Sweatshirts 298,639 30% 88,562
Bags 298,639 14% 42,074
Key chains 298,639 20% 61,199
Wallets 298,639 15% 45,017
Mugs 298,639 5% 15,888

Decor 298,639 6% 19,125
Woodcrafts 298,639 7% 22,067
Book Accessories 298,639 1% 3,825
Others 298,639 0% 883
Total Demand 298,639
Demand Analysis
Table 3.2 Demand Analysis
Note: Percentages above are based on the survey conducted by the
researchers.
Computation for Total Target Market:
Average Annual Tourists and Visitors of Pampanga 394,764
Percentage of those who buy souvenirs x 0.85
Number of tourists who buy souvenirs 335,550
Percentage of those who are willing to buy to TK x 0.89
Total Target Market 298,639
Projected Annual Demand
Year Demand
2019 298,639
2020 328,503
2021 361,353
2022 397,489
2023 437,238
Table 3.3 Projected Annual Demand
Note: There is an increase of 10% in demand.
Supply Analysis
Wear Kapampangan
Product No. of No. of Total no. of No. of Total
product sold Branches in product sold days in a
in a day Pampanga in a day year
Shirts 25 4 100 365 36,500
Total 25 4 100 365 36,500
Table 3.4 Supply Analysis of Wear Kapampangan
Kultura Filipino
Product No. of No. of Total no. No. of Total
product Branches of product days in a
sold in a in sold in a year
day Pampanga day
Shirts 25 2 50 365 18,250
Bags 30 2 60 365 21,900
Key chains 25 2 50 365 18,250
Wallets/Pouche 35 2 70 365 25,550
s
Mugs 10 2 20 365 7,300
Woodcrafts 9 2 18 365 6,570
Décor 5 2 10 365 3,650
Total 139 2 278 365 101,470
Table 3.5 Supply Analysis of Kultura Filipino
Product Production in a year

T-shirts/Sweatshirts 31,200
Bags 6,240
Key chains 46,800
Wallets and Pouches 9,360
Mugs 2,080
Woodcrafts 2,100
Décor 972
Book Accessories 600
Total 99,352
Tatak Kapampangan
Table 3.6 Supply Analysis of Tatak Kapampangan
Total Supply
Competitors Annual Supply
Wear Kapampangan 36,500
Kultura Filipino 101,470
Tatak Kapampangan 99,352
Total 237,322
Table 3.7 Total Supply
Projected Annual Supply of Competitors
Year Supply of Competitors

2019 137,970
2020 140,288
2021 142,645
2022 145,041
2023 147,478
Table 3.8 Projected Annual Supply of Competitors
Note: There is an increase of 1.68% in supply.
Projected Annual Supply of Tatak Kapampangan
Year Annual Supply

2019 99,352
2020 109,287
2021 115,844
2022 122,795
2023 130,163
Table 3.9 Projected Annual Supply of Tatak Kapampangan
Note: There is an increase of 10% in production.
Demand and Supply Gap Analysis

Year Annual Annual Demand- Unsatisfied
Projected Projected Supply
Demand Supply of Gap
Competitors
2019 298,639 137,970 160,669 54%
2020 328,503 140,288 188,215 57%
2021 361,353 142,645 218,709 61%
2022 397,489 145,041 252,448 64%
2023 437,238 147,478 289,760 66%
Table 3.10 Demand and Supply Gap Analysis
Market Share
T-Shirts 2019 2020 2021 2022 2023
Wear Kapampangan 36,500 37,113 37,737 38,371 39,015
Kultura Filipino 18,250 18,557 18,868 19,185 19,508
Tatak Kapampangan 31,200 34,320 37,752 41,527 45,680
Total 85,950 89,990 94,357 99,083 104,203
Market Share 36% 38% 40% 42% 44%
Table 3.11 Market Share – T-Shirts
Bags 2019 2020 2021 2022 2023

Total 28,140 29,132 30,192 31,328 32,545
Market Share 22% 24% 25% 27% 28%
Table 3.12 Market Share – Bags
Keychains 2019 2020 2021 2022 2023

Total 65,050 70,037 75,496 81,476 88,028
Market Share 72% 74% 75% 76% 78%
Table 3.13 Market Share – Keychains
Wallets 2019 2020 2021 2022 2023

Total 34,910 36,275 37,741 39,318 41,015

Market Share 27% 28% 30% 32% 33%
Table 3.14 Market Share – Wallets
Mugs 2019 2020 2021 2022 2023

Total 9,380 9,711 10,064 10,443 10,848
Market Share 22% 24% 25% 27% 28%
Table 3.15 Market Share – Mugs
Woodcrafts 2019 2020 2021 2022 2023

Total 8,670 8,990 9,334 9,702 10,097
Market Share 24% 26% 27% 29% 30%
Table 3.16 Market Share - Woodcrafts
Décor 2019 2020 2021 2022 2023

Tatak Kapampangan 972 1,069 1,176 1,294 1,423
Total 4,622 4,781 4,950 5,131 5,325
Market Share 21% 22% 24% 25% 27%
Table 3.17 Market Share - Decor
Book Accessories 2019 2020 2021 2022 2023

Tatak Kapampangan 600 660 726 799 878
Total 600 660 726 799 878
Market Share 100% 100% 100% 100% 100%
Table 3.18 Market Share – Book Accessories
Competition Analysis
WEAR KAPAMPANGAN
Strengths
 It promotes the kapampangan dialect by printing the Kapampangan
words in the T-shirts that they are selling.
 Located in malls perfect for those who go shopping.
Weaknesses
 Merchandise selection focused on Kapampangan people only.
 Not attractive to others not living here in Pampanga for they cannot
understand the words written in the products.
KULTURA FILIPINO
Strengths
 Many branches nationwide
 Located inside malls that is a good choice of location because many
people visit malls
 Large selection of products, good for different preferences of customers.
 Many products to buy.
Weaknesses
 Not that attractive to customers because it is position next to those
apparels that are trending in this time.

 Other products are not that attractive.
SWOT Analysis
STRENGTHS WEAKNESSES
 Uniqueness of Product  Brand Acknowledgement
Design
 Number of Tourist coming
 Limited Competition in Pampanga
 Woodcrafts of Katutubo  Lots of substitute available

in the market
 Low Cost Products
 Location of the Store
,
OPPORTUNITIES THREATS
 Government Acts  Intense competition in other
 Events/Events Center store and supermarkets
 Marketing Advertisement  Increasing cost of
 Limited buying and

spending capacity of
consumer
Table 3.19 SWOT Analysis
Survey Analysis
The proponents conducted a survey to 384 tourists and visitors of
Pampanga (target market of Tatak Kapampangan). 196 of which are done
by visiting tourist attractions like Sandbox, Clark Museum, Nayong Pilipino,
and Clark. The remaining 188 were conducted online. A random sampling is
used for the computation of the number of respondents.
The computation for the number of respondents is based on the following
formula:
z 2 × p ( 1− p )
n=
e2
z 2 × p ( 1−p )
1+( )
e2 N
Survey Results and Data Analysis
1. How often do you visit Pampanga?

16% 7% 1%
Once a year
43%
Twice a year
Thrice a year
Every month
Once for every quarter
13% No answer
21%
Figure 3.1 Survey Analysis – Question 1

Out of 384 respondents, 43% visit Pampanga once a year, 21%
twice a year, 16% come for every month, 13% thrice a year, 7% once for
every quarter and the remaining 1% did not answer. If this percentages are
multiplied to the average annual number of visitors and tourists in
Pampanga, then Pampanga is expecting to have a total of 2,125,659 visits in
a year.
2. Reason for visiting Pampanga.

8% 17%
25% For Festivals

Travelling
For Recreation
For Meeting/Business
purpose
28% Family outing
Other, please specify
10% 12%
Out of 384 respondents, 28% come to Pampanga because they
are travelling, 25% come for family outing, 17% for festivals, 12% for
recreation, 10% for meeting/business purposes and 8% visits the province
for some other reason like for vacation, during holidays, charities, and for
youth camps.
3. What places do you usually visit in Pampanga?
2% 17%
38% Heritage Churches

Resorts/Parks
Visit Relatives and Friends
43%
Out of 384 respondents, 43% come to Pampanga for its resorts
and parks, 38% visits their relatives and friends, 17% go to heritage
churches, and 2% go to some other places for outreach programs. Tourists
usually visit resorts and parks in Pampanga such as Sandbox, Alfredos,
Clark and other tourist spots so the designs of our products are related to
this places.
4. Do you buy souvenirs when you are travelling?

14% 1%
Yes No
No answer
85%

Out of 384 respondents, 85% or majority answered yes, they buy
souvenirs when they are travelling and going to a place for the first time or
when they do not usually go or barely go to that particular place while 14%
answered no and 1% did not answer. This is an indication that a souvenir
shop is a good business for Pampanga since there are travelers and visitors
that come to the province.
5. If yes, how much are you willing to spend on buying

souvenirs?
8% 11% 17%
₱ 100 to ₱ 300 or $ 2 to $ 6
₱ 301 to ₱ 500 or $ 6 to $ 10
₱ 501 to ₱ 1000 or $ 10 to $ 20
18%
₱ 1001 to ₱ 2000 or $ 20 to $ 40
19%
₱ 2001 and above or $ 40 and
above
27%
No answer
Out of 384 respondents, 27% are willing to spend the amount of ₱
501 to ₱ 1000 or $ 10 to $ 20, 19% for the amount of ₱ 1001 to ₱ 2000 or $
20 to $ 40, 18% for ₱ 301 to ₱ 500 or $ 6 to $ 10, 17% for ₱ 100 to ₱ 300 or
$ 2 to $ 6, 8% for ₱ 2001 and above or $ 40 and above while 11% did not
answer. There is just a small differences between the percentages after
27%. This is a good basis for the prices of every product.

6. What items do you prefer to buy as souvenirs?

6%
7% 1% 0% 31%
5% T-shirts/Sweatshirts
Bags
Key chains
Wallets and Pouches
Mugs
15% Decor
Woodcrafts
Book Accessories
20% 14%
Out of 384 respondents, 30% chooses t-shirts/sweatshirts as
souvenirs, 20% chooses keychains, 14% chooses bags, 15% prefers wallets
and pouches, 5% chooses mugs, 6% for decors, 7% for woodcrafts, 1% for
book accessories and less than 1% for others. This data will be the basis of
what products are we going to produce more. So, since t-shirts/sweatshirts,
keychains, bags and wallets have greatest percentage among the choices,
we will be producing more of these items. Other products will also be
available since there are some who answered food.

7. Are you willing to buy to Tatak Kapampangan Souvenir

shop?
10% 1%
Yes No
No answer
89%
Out of 384 respondents, 89% or majority are willing to buy to Tatak
Kapampangan, 10% answered no while 1% did not answer. This data will be
favorable for the business since even if it is not yet existing, the target
market’s response are positive.

Marketing Plans and Programs
Product
Souvenir is an important component of the tourist experience with most
tourist bringing back mementos and souvenirs as evidence of their travel.
People like to be remembered of the special moments in their lives and to
hold evidence of those special moments. Therefore, souvenirs must be
produced for tourist to serve as a reminder of their memories and
experiences in a particular travel.
TATAK KAPAMPANGAN, as the name itself depicts, produces and
provide products made by the kapampangans. At the commencement of the
business TK will produce five products namely keychains, shirts, wallets,
bags, and mugs all with a variety of colors and designs. There will also be
products made by Aetas from the mountain in Porac like woodcrafts, decors
and book accessories.
The imprinted designs of shirts and mugs are related to the festivals
being celebrated in the province like the Giant Lantern Festival, Hot Air
Balloon Festival and Ibun Ebun Festival. Portraits of kalesa and giant ferris
wheel will also be used for the design since this are popular in Pampanga.
For wallets/pouch and bags, TK is planning to use the famous sayings of
kapampangans like “Kaluguran Daka” (I Love You), “E ca lalapit quing api
nung e ca bisang mapali” (Don’t come near the fire if you don’t want to be
burned), “Panayan mu caring anac mu ing depatan mu cang tata mu” (Wait
your children do what you did to your father) and the like. The key chains will
be made from variety of materials like wood and alloy. Like for shirts and
bags, the design for the keychains are inspired from the festivals in
Pampanga. Woodcrafts’ design are mini version of furniture which can be
used for home decoration.
Price
Price plays a key role in the marketing mix. The reason for this
importance is that where the rest of elements are cost generators, price is a
source of income and profits. Through pricing, the organization manages to
support the cost of production, the cost of distribution and the cost of
promotion.
First impressions last. A consumer will form a perception about
the product’s quality and relevance as soon as they see the price.
Eventually, the decision to buy or not may be based on the perceived value
of the entire product or marketing mix offering. But there is always danger
that the first impression triggered by the price point will either make the rest
of the offering irrelevant or it will be a biased assessment.
In order to build up a good first impression, Tatak Kapampangan
will use penetration pricing wherein a low price is set by the company to build
up sales and market share. This method will be done to establish position in
the market with preexisting products on offer. Once a position is created, the
prices may be raised. It will offer introductory price at the beginning and then
increase as business grows.
Place
This plays a major role in the distribution and flow of goods
because it ensures that the products are at the right place at the right time.
Without proper product placement, customers are likely to look elsewhere for
what they need or desire.
Tatak Kapampangan’s store will be located along Jose Abad
Santos Avenue, Dolores, City of San Fernando Pampanga. It is along the
main road so it is easy to access and locate. The distribution of products to
the store will go smoothly since there is no much traffic in the vicinity at the
time of delivery from the factory. The place is also convenient for the
customers since it can be easily seen and mode of transportation is
available. There is no way for customers to be lost. They can arrive in the
store easily whether through public or private transportation.
Promotion
Promotion refers primarily to marketing communications. These
communications use channels such as public relations, advertising, direct

marketing, social media marketing or sales promotions. It is a way in which
marketers disseminate relevant product information to their target customers.
Since Tatak Kapampangan’s target market are the tourists in
Pampanga, it will use advertising and public relations in promoting its
products. There will be posters and advertisements on social networking
sites like facebook and youtube. Doing this will result to quick feedbacks
from consumers and faster spreading of information about the store. TK will
also invite bloggers in the store and make them include Tatak Kapampangan
in their stories. By doing that, more and more travelers and visitors of
Pampanga may include Tatak Kapampangan in their itinerary.
In order to gain fresh ideas for the designs of the products, Tatak
Kapampangan will sponsor contests in different schools in Pampanga. The
designs made by the winners will be used as designs for the product in a
particular year.
TK is also planning to have a booth or stall in every event or festival
celebrated in Pampanga. Since one of the tourists’ reason for visiting
Pampanga is because of its festivals, it is a perfect opportunity to reach its
target market. This will also increase the popularity of the shop to tourists.
Aside from that, TK plans to communicate with travel agencies for
them to include Tatak Kapampangan in the lists of destinations in
Pampanga. It is a good way of reaching its target market.

Action Plan
MARKETING Qualified Person

ACTION PLAN
OBJECTIVES Responsible
Spot new trends ahead
of the competitors and
a) To establish a
develop innovations.
constant market General Manager
share for the next 5 and Sales and
Strengthen customer
years of the Marketing Manager
relationships by
business.
responding fast to
customers
Design more products
related to the culture
b) To promote the and festivals of Sales and
kapampangan Pampanga. Marketing Manager
products/goods and and Product
its festivals and Feature the best Designer and
culture. qualities of the province Developer
through statements on
the products.
PRODUCTION /
Qualified Person
OPERATIONAL ACTION PLAN
Responsible
OBJECTIVES
a) Maximize the
Keep track of expenses
use of company General Manager
and budget
resources.
Measure the current
process and identify
b) To minimize time factors that add time to
in the production cycle. Production Manager
of the products.
Creating schedule and
reducing uncertainty.
Train employees to
c) To increase the
efficiently use
units of General
machines and
production with Manager/Production
equipment to produce
minimum Manager
more products within
increase in cost.
the same time period.
Qualified
FINANCIAL OBJECTIVES ACTION PLAN Person
Responsible
a) To achieve a return of The management General
investment in less than 5 must be updated Manager
years from the with current market
commencement of the trends and be able
business. to incorporate these

to the products
produced to secure
consistent demand
leading to stable
proceeds.
Acquire raw materials
with discount by General

b) To attain an annual 5 purchasing in enormous Manager and
percent growth in profit volume. Sales and
margin. Marketing
Increase demand Manager
through promotions.
Table 3.20 Action Plan
Projected Sales
T-shirt
Year Production for a Projected Sales in Price Projected
year Units Sales
2019 31,200 24,960 ₱ 156 ₱ 3,891,264.00
2020 34,320 33,696 164 5,467,225.92
2021 37,752 40,841 172 6,963,526.37
2022 41,527 41,150 180 7,393,992.52
2023 45,680 45,265 189 8,540,061.37
Table 3.21 Projected Sales – T-Shirts
Bags
year Units Sales
2019 6,240 4,992 ₱ 126 ₱ 629,391.36
2020 6,864 6,739 132 884,294.86
2021 7,550 8,168 139 1,126,313.54
2022 8,305 8,230 146 1,195,939.16
2023 9,136 9,053 153 1,381,309.73
Table 3.22 Projected Sales – Bags
Keychains
year Units Sales
201 46,800 37,440 ₱ 46 ₱ 1,709,510.40
9
202 51,480 50,544 48 2,401,862.11
0
202 56,628 61,261 50 3,059,216.94
1
202 62,291 61,725 53 3,248,329.37
2
202 68,520 67,897 56 3,751,820.42
3
Table 3.23 Projected Sales – Keychains
Wallets
year Units Sales
201 9,360 7,488 ₱ 97 ₱ 724,538.88
9
202 10,296 10,109 102 1,017,977.13
0
202 11,326 12,252 107 1,296,582.70
1
202 12,458 12,345 112 1,376,733.90
2
202 13,704 13,579 118 1,590,127.65
3
Table 3.24 Projected Sales – Wallets
Mugs
year Units Sales
201 2,080 1,664 ₱ 113 ₱ 188,048.64
9
202 2,288 2,246 119 264,208.34
0
202 2,517 2,723 125 336,518.33
1
202 2,768 2,743 131 357,320.97
2
202 3,045 3,018 137 412,705.72
3
Table 3.25 Projected Sales – Mugs
Medicine Cabinet/other cabinets

Year Purchases for a Projected Sales in Price Projected Sales
year Units
201 120 96 ₱450 ₱ 43,200.00
9
202 132 130 450 58,320.00
0
202 145 157 473 73,626.30
1
202 160 158 473 74,781.63
2
202 176 174 496 85,995.44
3
Table 3.26 Projected Sales – Medicine Cabinet/ Other Cabinets
House Bank

year Units
2019 180 144 ₱ 450 ₱ 64,800.00
2020 198 194 450 87,480.00
2021 218 236 473 110,439.45
2022 240 237 473 112,172.45
2023 264 261 496 128,993.17
Table 3.27 Projected Sales – House Banks
Bamboo bank
year Units
201 480 384 ₱ 113 ₱ 43,392.00
9
202 528 518 113 58,579.20
0
202 581 628 119 73,953.53
1
202 639 633 119 75,113.99
2
202 703 696 125 86,377.65
3
Table 3.28 Projected Sales – Bamboo Bank
Bamboo tray
year Units
201 360 288 ₱ 105 ₱ 30,240.00
9
202 396 389 105 40,824.00
0
202 436 471 110 51,538.41
1
202 479 475 110 52,347.14
2
202 527 522 116 60,196.81
3
Table 3.29 Projected Sales – Bamboo Tray
Wind Chime
year Units
201 600 480 ₱ 105 ₱ 50,400.00
9
202 660 648 105 68,040.00
0
202 726 785 110 85,897.35
1
202 799 791 110 87,245.24
2
202 878 870 115 100,328.02
3
Table 3.30 Projected Sales – Wind Chime
Water whistle
Year Purchases for a Projected Sales Price Projected
year in Units Sales
201 360 288 ₱ 75 ₱ 21,600.00
9
202 396 389 75 29,160.00
0
202 436 471 79 36,813.15
1
202 479 475 79 37,390.82
2
202 527 522 82 42,997.72
3
Table 3.31 Projected Sales – Water Whistle
Refrigerator magnets
Year Purchases for a Projected Price Projected Sales
year Sales in Units

2019 600 480 ₱ 75 ₱ 36,000.00
2020 660 648 75 48,600.00
2021 726 785 79 61,355.25
2022 799 791 79 62,318.03
2023 878 870 83 71,662.87
Table 3.32 Projected Sales - Refrigerator Magnets
Wall clock
Year Purchases for a Projected Sales Price Projected Sales
year in Units
2019 180 144 ₱ 300 ₱ 43,200.00
2020 198 194 300 58,320.00
2021 218 236 315 73,626.30
2022 240 237 315 74,781.63
2023 264 261 331 85,995.44
Table 3.33 Projected Sales – Wall Clock
Picture Frames
year in Units
201 192 154 ₱ 150 ₱ 23,040.00
9
202 211 207 150 31,104.00
0
202 232 251 158 39,267.36
1
202 256 253 158 39,883.54
2
202 281 279 165 45,864.24
3
Table 3.34 Projected Sales – Picture Frames
Thumb thing book holder

year in Units
201 240 192 ₱ 90 ₱ 17,280.00
9
202 264 259 90 23,328.00
0
202 290 314 95 29,450.52
1
202 319 317 95 29,912.65
2
202 351 348 99 34,398.18
3
Table 3.35 Projected Sales – Thumb Thing Book Holder
Book stand
year in Units
201 120 96 ₱ 300 ₱ 28,800.00
9
202 132 130 300 38,880.00
0
202 145 157 315 49,084.20
1
202 160 158 315 49,854.42
2
202 176 174 331 57,330.30
3
Table 3.36 Projected Sales – Book Stand
Book marks
year in Units
201 240 192 ₱ 45 ₱ 8,640.00
9
202 264 259 45 11,664.00

0
202 290 314 47 14,725.26
1
202 319 317 47 14,956.33
2
202 351 348 50 17,199.09
3
Table 3.37 Projected Sales – Book Marks
Year Projected Annual

Sales
2019 ₱ 7,553,345
2020 10,589,868
2021 13,481,935
2022 14,283,074
2023 16,493,364
Table 3.38 Total Sales
CHAPTER IV TECHNICAL STUDY
Introduction
Technical Analysis is the forecasting of future financial price
movements based on an examination of past price movements. Like weather
forecasting, technical analysis does not result in absolute predictions about
the future. Instead, technical analysis can help investors anticipate what is
likely to happen to prices over time. It is also a methodology that makes buy
and sell decisions using market statistics. It primarily involves studying
charts showing the trading history and statistics for whatever security is
being analyzed.
This chapter covers the technical aspect proposed project. It includes
the service description and the standard operating procedures to be
employed. It also shows the materials and equipment that will be used in
rendering services, the project site, building plan and mobile layout, labor
requirements, utilities, waste disposal management, safety and other
technical factors to attain cost minimization and profit maximization.

Description of the Product
The best way to promote a place is by trading products that will present
what the tourist experienced in a place. Through those products they will
always remember their experiences and happy memories in that place.
Some places have this store where tourist will buy pasalubongs and that is a
souvenir shop. Tatak Kapampangan is a souvenir shop that will sell t-shirts,
mugs, bags, wallets, key chains, woodcrafts, decors, and book accessories
which are products of Aetas.
Product Specification
1. T-SHIRTS
For the last few decades, t-shirt is primary in casual wear and has been
commonly accepted by both men and women and it is also common items
that some souvenir shops is marketing.
With the growth in popularity of t-shirts businesses, there’s no doubt that
the company will face some stiff competition. To breakthrough, the company
will have t-shirt designs that are unique and people will love. The company
will also use methods that will assure quality of the products.
The designs will feature the festivals, the tourist spot in Pampanga
and a statement shirt like “I LOVE PAMPANGA”. Colors are white, black,
gray, maroon/red and blue.

Method in Printing T-shirts
The most widely used method of t-shirt printing is the Screen Printing
Method or Silkscreen Process. The company chose this method because it
is the most cost efficient and versatile.
This method is a very old technique that has existed for thousands of
years. Despite its age, printing silk screening finds wide application in the
modern world. The requirements of Screen Printing Methods are: to create a
screen using emulsion, an emulsion remover and ink thinner to clean the
screen after a single use, wash out booth for cleaning as well as creating
screens, a dark room, installation of flash and conveyor belt dryers for drying
screens, and a printing machine. It also include squeegees, tape, films,
scrubbers and a minimum of 20 screens of different mesh size, plastisol inks
of various colors and a printer for burning films.
The company will use water-based ink. It is embed into the fabric and
produce a soft feel on touching. And the important reason why TK chose this
is because it is eco-friendly causing minimal harm to the environment.
ADVANTAGES DISADVANTAGES
 Vibrant Design  Set Up Cost

 Speed and Efficiency  Unsustainable
 Big Order Friendly  Costs Add Up
 Variety  Time-consuming
 Good Quality
 Long Lasting
 Versatility
 Straightforward
Table 4.1 Advantages and Disadvantages of Screen Printing Method
The festivals/events and tourist spot that TK will feature are:
Sinukwan Festival, Hot Air Balloon Festival, Giant Lantern Festival, Mount
Pinatubo, Mount Arayat, El Kabayo Stables, San Pedro Cutud Crucifixion
Rites, Sandbox, Dinosaurs Island and Zoocobia Fun Zoo.
SAMPLE DESIGNS
Figure 4.1 Sample Designs – T-Shirt

2. MUGS
The designs of the mugs will also feature the festivals and tourist
spot here in Pampanga. Colors are white and black. Size is 15 oz.
To make the designs of the t-shirts and mugs be more unique, the
company will use quotes/saying about that particular festivals and tourist
spots.
Like, for the Mt. Arayat, the picture of the mountain will be printed
in the mugs and will have a quote/saying about the people who loves
mountain climbing, trekking and hiking.
3. WALLETS AND BAGS
The wallets and bags will feature the famous sayings of
Kapampangans. It will be printed in front of the wallet/pouch and have an
English translation so that foreigners will understand. TK will only produce
bags and wallets with plain white color.
Method in Printing Mugs, Wallets and Bags
The printing method that the company will use for mugs, wallets and
bags is Dye Sublimation. It is one of the most popular methods of printing on
promotional mugs, wallets and bags and it is one of the most eco-friendly
techniques because it eliminates the use of harmful substances. Such as
lead and cadmium. This method is the only process that promises vibrant
print design and accurate color reproduction. It uses organic color dyes and
utilize heat transfer to ink the desired artwork on the surface of the of the
products, thus, ensuring the design still looks brand new even after an
extended period of time.
4. KEY CHAINS
The designs of the keychains are based on the events and
festivals of Pampanga. There will be hot air balloon shaped keychains,
metals with imprinted Pampanga on it, lantern shaped keychains and more
all with a variety of colors and designs. These designs will be done by the
product designer and developer. The keychains will be made of metals and
wood. There will be machines for cutting and engraving, coloring and
polishing.
The special about Tatak Kapampangan is their products.
Through these the company will be able to promote Pampanga not only to
the vacationers but also to the tourists who will visit. This will make them
reminisce their beautiful experiences so they will be more excited to come
back, experience and explore new things in Pampanga. This will result to
them inviting their relatives and friends. The unique way about the company
is they also promote eco-friendly products by using “katsa” as their fabric for
the bags and wallets that TK will produce and also uses methods in printing
that are environmental friendly. They also trade popular products of
Kapampangans.
One of the objective of TK is to help a community grow that’s why it
offers products of Aetas from the mountains of Porac. These products are
woodcrafts, decors and book accessories.
BOOK
WOODCRAFTS DÉCOR
ACCESSORIES
Medicine
Thumb thing book
Cabinet/other Refrigerator magnets
holder
cabinets
House Bank Wall clock Book stand
Bamboo bank Picture Frames Book marks

Bamboo tray
Wind Chime
Water whistle
Table 4.2 Products of Aetas
Figure 4.2 Products of Aetas

Raw Materials and Supplies
Quantity
Raw Total
Description Unit Cost Needed/ Sources
Materials Cost
month
Cotton Alchimar
T-Shirt P80/Pc 2600 ₱208,000
clothes Printing
P180/100 Uniprint
Ink Ink 2600 4,680
ml bottle Pampanga
Total ₱212,680
Table 4.3 T-Shirts
Quantity
Raw Total
Description Unit Cost Needed/ Sources
Materials Cost
month
Fabric Katsaa P80/yard 260 ₱20, 800 Guan nyek
White; size
Zipper P550/Roll 1 550 Guan nyek
15”
Slider White P1/Pc 520 520 Guan nyek
P42/Cone
Thread White 5 210 Guan nyek
s
Sublimation Uniprint
Paper P1.85/Pc 520 962
Paper Pampanga
Sublimation P180/100 Uniprint
Ink 520 936
Ink ml bottle Pampanga
Total ₱23,978
Table 4.4 Bags
Raw Description Unit Cost Quantity Total Cost Sources

Materials Needed/
month
Solid Ronmark
Sheets P79.64 122 ₱ 9,716.08
Wood Hardware
Aluminu
Sheets 100 122 12,200 Ronmark
m
Gallons 750 8 6,600 Hardware
Paints
Kraft JBH
Sheets 80 10 800
Box Trading
JBH
Plastic Sheets 87 20 1,740
Trading
Metal
Pcs. 2 3900 7,800 Lazada
rings
Total ₱38,856.08
Table 4.5 Keychains
Raw Quantity
Total
Material Description Unit Cost Needed/ Sources
Cost
s month
Fabric Katsa P80/Yard 195 ₱15,600 Guan nyek
Thread White P42/Cones 2 84 Guan nyek
White; Size
Zipper P550/Roll 2 1,100 Guan nyek
8”
Slider White P1/Pc 780 780 Guan nyek
Paper P1.85/Pc 780 1,443
Paper Pampanga
Ink P180/100ml 780 1,404
Ink Pampanga
Total ₱20,411
Table 4.6 Wallets

Quantity
Raw Unit
Description Needed/ Total Cost Sources
Materials Cost
month
P50/P
Mugs Plain Mug 173 P8,650 Divisoria
c
Uniprint
Sublimation P180/
Ink 173 311.4 Pampang
Ink 100ml
a
Uniprint
Sublimation P1.85/
Paper 173 320.05 Pampang
Paper Pc
a
Total ₱9,281.45
Table 4.7 Mugs
MANUFACTURING PROCESS
Shirts
1. Take everything out of the box. Read

the diagram explaining what all the parts
are.
2. There are two sides to the screen: a

finished side and an unfinished side. Turn
the screen over so that the unfinished side
is facing up
3. Fill a spray bottle with water (no bleach or chemicals) and spray the
screen until it is wet but not dripping.
4. The black envelope that comes in the

box has two emulsion sheets in it. Get
one out and place the side that is DULL
on the wet screen
5. Put the newly emulsioned screen in

the drying rack and press the fan button.
Make sure you time it as the machine does not beep! It usually takes about
20 minutes or longer.
6. Print your design on the translucent

paper.
7. Now take your screen out and peel

off the plastic on the emulsion. If the
plastic isn't coming off, put your screen
back in the drying rack for another 10
minutes or so. A little bit of emulsion is usually going to come off in the
corner. When it does just be careful
around that area so the rest of the
emulsion doesn't come off with it.
8. Tape your design to the glass and

place the screen emulsion side down
over the design on the pegs. If there are
holes in the emulsion, make sure they
are not over the design, this will result in holes in your design also. Put the t-
shirt platen on the pegs too. Put the
cover over the platen and weight down
the platen with a 5 lbs weight.
9. Use the up, down buttons to set the

timer for 8 minutes. Now press the
expose button, it looks like a sun.
10. When the machine beeps, take out

the screen. Now it has your design imprinted on the emulsion. Next, rinse
the screen, preferably using the sprayer nozzle. Only rinse the side that the
emulsion is NOT on. DO NOT SCRUB.
11. When you've sprayed the screen enough so that the design is clear and
the emulsion is green, put the screen in
the drying rack and press the drying
button. It works best if you dry the screen
in the drying rack until it beeps, then take
it out and let it air dry for about 2 hours. If
you don't have enough time, just dry it
once in the drying rack (until it beeps).
12. Now take the screen out and use masking tape around the edges and
wherever there are holes that you don't want to appear in your design.
13. Attach the t-shirt to the t-shirt

platen (just place it on top, do not put the
platen in the middle of the shirt).
14. Now put the screen on the emulsion side down on the pegs, put a bead
of ink just above the design, and squeegee down while applying pressure to
the screen.
15. Take off the platen with the shirt

still on it and allow to air dry for 15
minutes. Take the shirt off the platen
and hang int to dry for 1-2 hours. When
the ink is dry, either iron the design with
a cloth over it or tumble dry on a
medium heat setting.
Tote Bags
1. Start off with your basic tools scissors, pins, ruler, seam ripper, fabric
crayon, and a sewing machine (which is not shown).
2. You can make about 2 bags with 1 meter
(folded). Cut out a piece that is 18" x 15".
3. Then fold the 18" x 15" canvas in half, it
is now 9" x 7 1/2".
The fold is going to be the bottom.
4. For the straps on the bag, cut 2 16" long
straps
5. At the top, fold the canvas down 1" from
the edge, pin it, then repeat on the other
side. Then sew about .5mm from the edge.
Removing pins as you go along.
Remember to double stitch at the
beginning and end.
6. After finishing the top fold stitches, you're
going to sew the sides of the bags
together.
Pin the sides together. Leave about 1mm
from the edge of the fabric when sewing.
7. On the bottom corners of your bag,
you're going to pinch the corners and
then sew across like shown.
Measure properly for both of the
corners and pin it down to make it
easier.
Sew about 3" across the corners. Repeat on the other bottom corner of
the bag.
This gives your bag more of a bottom/volume.
8. It should look like this.
9. Take one of the straps and measure
about 4" to the side, and lined up to the 1"
fold of the top of the bag.
Pin the strap down and repeat on each
sides. Like shown.
10. Sew the straps down securely , by sewing
around the edge of the strap, making a
square, then sew from corner to corner of
the square, like an X.
It should look like a box with an X in the
middle, like shown.
Repeat three more times with the other
straps.
11. It should look like this, clean up any loose strings, then flip it inside out.
Keychain
1. Initial set-up and Molds
Molds for key chains are usually made of copper or aluminum carved
either by machine or by hand.
After carving, the molds need to be further processed by abrasive blasting
and electroplating to ensure smoothness and purity. These prevents any
wrinkles, impurities, or unwanted bubbles during keychain production.
2. Coloring Injection
When the cutting and engraving process is done, it’s time to inject the
colors. For some simple logos, this job can be done by machine, but for
more complicated ones, it’s better to do it by hand. The experience of
workers is very important to the quality of the final product.
3. Assembly and Packaging
When the keychains are ready, it time to assemble the keychains by
attaching metal rings (or chains). The workers will inspect the product’s
quality, then finally pack each keychain in a poly bag or customized
packaging.
Mugs
1. Design the image on the computer using Adobe Photoshop CS6.
2. Print the image on the sublimation paper with a printer.
3. Need to use the sublimation ink to print out sublimation paper.
4. Cut the printed sublimation paper by 3.5” Length and 8” width.
5. Hot stamping design the product by Heat Press Machine for 180 seconds at
180 Degrees Celsius.
Wallets
1. Prepare the materials
2. Measure the “Katsa” using pencil and ruler.
3. Measure the width & length (6 inch x 8 inch) and make sure to have 1 inch
allowance for cutting and sewing.
4. Add pylon to make the “katsa” firm. Cut it as the same size of katsa. 6 inch x
8 inch and 1 inch allowance.
5. Print the design in the “katsa”.

6. Combine the cut katsa and pylon, and put the pylon in the middle part of the
“katsa”. Then, fold and make sure it is folded equally and properly.
7. Start sewing both sides and put the zipper.
8. Trim the excess thread.

Operational Procedures
Production Department
The production department will be concerned with the manufacture of
products and maintenance of the production line and other necessary
repairs. This department is also responsible for quality control and
inspection. The most important function of a production department is
managing the production well. Production department will decide how many
workers needed, what are the machine and equipment should be used to
achieve the desired output level and most importantly is what process will
provide the best product to meet customer needs.
The production schedule involves the tasks to be complete along the
production line and allocating the task to various production workers.
Production Schedule For:

T-SHIRTS
WORKER: 1 PRINTING STAFF
8:00 – 9:00 AM Preparing all the things needed.
Printing the designs in the

9:00 - 9:10 AM
translucent paper.
Putting the design in the screen

9:10 – 10:00 AM
printing.
10:00 – 10:15 AM BREAK
10:15 – 12:00 PM Let the screen dry.
12:00 – 1:00 PM LUNCH BREAK
1:00 – 3:00 PM Putting the ink in the t-shirts.
3:00 – 3:15 PM BREAK
3:15 – 4:15 PM Hang it to dry.
4:15 – 5:00 PM Iron the design.
Table 4.8 Production Schedule – T-Shirts
MUGS
WORKER: 1 PRINTING STAFF
Printing the design in sublimation
8:00 – 9:00 AM
paper.
9:00 – 10:00 AM Cutting the designs.
10:00 – 10:15 AM BREAK

Heating the mugs in the Heat
10:15 – 12:00 PM
Press Machine.

Heating the mugs in the Heat
1:00 – 3:00 PM
Press Machine.
3:00 – 3:15 PM BREAK
3:15 – 4:00 PM Let it cool.
4:00 – 5:00 PM Packaging

Table 4.9 Production Schedule – Mugs
WALLETS
WORKERS: 1 SEWER & 1 PRINTING STAFF
8:00 – 8:30 AM Pattern Making
8:30 – 9:30 AM Cutting
9:30 – 10:00 AM Printing
10:00 – 10:15 AM BREAK
10:15 – 12:00 PM Sewing
1:00 – 3:00 PM Sewing
3:00 – 3:15 PM BREAK
3:15 – 4:30 PM Sewing
4:30 – 5:00 PM Trimming

Table 4.10 Production Schedule – Wallets
BAGS
WORKERS: 1 SEWER & 1 PRINTING STAFF
8:00 – 8:30 AM Pattern making

8:30 – 9:45 AM Cutting

9:45 – 10:00 AM Printing
10:00 – 10:15 AM BREAK
10:15 – 12:00 PM Sewing
1:00 – 3:00 PM Sewing
3:00 – 3:15 PM BREAK
3:15 – 4:15 PM Sewing
4:15 – 5:00 PM Trimming
Table 4.11 Production Schedule – Bags
KEY CHAINS
WORKERS: 1 MACHINE OPERATOR, 1 POLISHER & 1 PACKAGER
8:00 – 9:00 AM Design making
9:00 – 10:00 AM Molding/ Engraving
10:00 – 10:15 AM BREAK
10:15 – 11:15 AM Polishing
11:15 – 12:00 PM Rubber Glue Pigmentation
1:00 – 2:00 PM Rubber Injection
2:00 – 3:00 PM Assembly
3:00 – 3:15 PM BREAK
3:15 – 5:00 PM Packaging

Table 4.12 Production Schedule – Keychains
Operating Hours of the Business
Store Hours
The store opens Monday to Sunday, 8:00 AM to 5:00 PM except for
Sunday. Every Sunday the store will be half day, 8:00 AM to 12:00 PM.
Manufacturing Hours
The workers in the production department are mandated to report 6
days a week, Monday to Saturday, to work at least 8 hours a day. Saturday
will be the rest day of workers.
All employees (in the store and production department) are expected
to arrive at workplace before the start time (8:00 AM) and leave after the
scheduled working hours. They are also required to be in their respective
duties during working hours.
TK MANUFACTURING CO.
WEEKLY MANPOWER SCHEDULE
EMPLOYEES & WORKERS MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –

GENERAL MANAGER REST DAY
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – REST
ACCOUNTANT REST DAY
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM DAY
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
SALES & MKTG SUPERVISOR REST DAY
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –

CASHIER
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
SALES CLERK 1
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – :
SALES CLERK 2
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 0
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 0
PRODUCTION SUPERVISOR
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – AM
PRINTING STAFF 1
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM -
PRINTING STAFF 2
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 12
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
:
PRINTING S1TAFF 3 00
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
SEWER 1
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – PM
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
SEWER 2
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
MACHINE OPERATOR 1 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –

POLISHER
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
PACKAGER 1
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
PACKAGER 2
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
PACKAGER 3
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
QUALITY INSPECTOR
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
DRIVER
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
JANITOR 1
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM –
SECURITY GUARD 1
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM
8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – 8:00 AM – REST
SECURITY GUARD 2
5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM 5:00 PM DAY
Table 4.13 Weekly Manpower Schedule
Lay-Out and Space Analysis
It is important for every company to manufacture the products which
have good quality that meet customers’ satisfaction. This action could be
conducted under existing resources such as employees, machines and other
manufacturing facilities. However, for the company to be able to increase
their production they should have a plant layout design that adopt the
fundamental basis of today’s industrial plants which can influence parts of
work efficiency. To create the most effective plant layout, it is necessary to
appropriately plan and position the employees, material, machines and
equipment, furniture and fixtures and other manufacturing supports and
facilities.
This lay-out for the factory of TK Manufacturing Company. The company
make sure that the space is properly designated for the machinery and
equipment for each product so that the workers can be more productive in
their designated jobs. All the machinery and equipment, and furniture and
fixtures are placed based on the process of each product so that the factory
workers are effective in there works and this will also help the company to be
more cost-efficient. If the workers finished their work on time, the
manufacture plan for every production will be completed and can minimize
any delay of deliveries.
Figure 4.3 Store Layout

Figure 4.4 Factory Layout
LEGEND FOR THE FACTORY
1. Screen Printing 6. Sewing Machine 11. Packaging Area
Machine 7. Trimming Area 12. Heat Press for
2. Shirts cooling area 8. Fiber Laser Mugs
3. Ironing Area Machine
4. Cutting Area 9. Polishing Area
5. Heat Press 10. Assembly

FACILITY DESIGN
Figure 4.5 Front View
Production Schedule
Year 1 Year 2 Year 3 Year 4 Year 5

Product/s Units Total
QTY QTY QTY QTY QTY
T-Shirts Pcs 31,200 34,320 37,752 41,527 45,680 190,479
Bags Pcs 6,240 6,864 7,550 8,305 9,136 38,096

Keychain
Pcs 46,800 51,480 56,628 62,291 68,520 285,719
s
Mugs Pcs 2,080 2,288 2,517 2,768 3,045 12,699
Wallets Pcs 9,360 10,296 11,326 12,458 13,704 57,144
Total 95,680 105,248 115,773 127,350 140,085 584,136

Table 4.14 Production Schedule
Machinery and Equipment

UNIT TOTAL
FACTORY QUANTITY
COST COST
Heat Press Machine 1 ₱7,500.00 ₱7,500.00
Heat Press Machine (For
1 7,500.00 7,500.00
mugs)
Screen Printing Machine 1 14,500.00 14,500.00
Printer 2 15,000.00 30,000.00
Sewing Machine 2 12,000.00 24,000.00
Laser Cutting and Engraver 316,515.5
1 316,515.54
Machine 4
250,000.0
Automatic Coloring Machine 1 250,000.00
0
Polishing Machine 2 12,200.00 24,400.00
Iron 2 1,200.00 2,400.00
Ceiling Fan 3 1,225.00 3,675.00
Exhaust Fan 3 5,950.00 17,850.00
Computer Set 1 13,000.00 13,000.00
Water Dispenser 1 1,300.00 1,300.00
Fire Extinguisher 2 1,200.00 2,400.00
Fire Alarm 1 300.00 300.00
CCTV Camera 2 2,200.00 4,400.00
Generator 1 37,000.00 37,000.00
Emergency Light 2 1,100.75 2,201.50
TOTAL ₱758,942.04
Table 4.15 Factory Machineries and Equipment
QUANTIT UNIT TOTAL

OFFICE
Y COST COST
Computer Set 3 ₱13,000.00 ₱39,000.00
Printer 1 15,000.00 15,000.00
Air Conditioner 1 8,000.00 8,000.00
Water Dispenser 1 1,300.00 1,300.00
Fire Extinguisher 1 1,200.00 1,200.00
Fire Alarm 1 300.00 300.00
CCTV Camera 1 2,200.00 2,200.00
Emergency Light 1 1,100.75 1,100.75
TOTAL ₱68,100.75
Table 4.16 Office Equipment
QUANTIT UNIT TOTAL

STORE
Y COST COST
Cashier Counter Machine 1 ₱20,452.00 ₱20,452.00
Air Conditioner 1 15,000.00 15,000.00
Delivery Truck 1 500,000.00 500,000.00
TOTAL ₱535,452.00
Table 4.17 Store Equipment
FURNITURE AND FIXTURES
UNIT TOTAL
FACTORY QUANTITY
COST COST
Table 3 ₱1500 ₱4,500.00
Long Table 8 4000 32,000.00
Chairs 3 450 1,350.00
Mono Block 13 393 5,109.00
Ironing Board 2 995 1,990.00
TOTAL ₱44,949.00
Table 4.18 Furniture and Fixtures – Factory
UNIT TOTAL
OFFICE QUANTITY
COST COST
Office Chair 3 ₱450.00 ₱1,350.00
Office Table 3 1,500.00 4,500.00
Filing Cabinets 2 2,799.00 5,598.00
Storage Cabinets 3 2,115.00 6,345.00
Dining Set 1 6,295.50 6,295.50
TOTAL ₱24,088.50
Table 4.19 Furniture and Fixtures – Office
QUANTIT UNIT TOTAL

STORE
Y COST COST
Counter Table 1 ₱5,650.00 ₱5,650.00
Counter Chair 1 1,299.00 1,299.00

Display Shelves 3 5,500.00 16,500.00
Gondola Shelves 4 5,500.00 22,000.00
Three Seater Chair 1 6,200.00 6,200.00
Retail Display Shelves 1 4,000.00 4,000.00
TOTAL ₱55,649.00
Table 4.20 Furniture and Fixtures - Store
Utilities
Store and Office

Utility Description Source/s Unit Consum Total
Cost ption
(PHP)
Electricity Use for the SFELAPCO 9.691 Monthly
lightning of 9/kwh
₱7,131.30
the store and
office.
Water Use for CSFP 19.65/ Monthly
cleaning of Water Cubic
1,055.25
office and District Meter
store.
Telecomm Telephone PLDT 1,500. Monthly
unication plan will be 00
and used for
Internet effective way
Connectio of
n communicatio
n to 1,500.00
customers.
Internet
communicatio
n will be used
for processing
of information.
TOTAL ₱9,686.55
Table 4.21 Utilities – Store and Office
Factory
Utility Description Source/s Unit Consu Total
Cost mption
(PHP)
Use for
Electricit
operational 9.6919/ Monthl
y– SFELAPCO 24,820.96
equipment and kwh y
Factory
lightning.
Use for
processing,
22.25/C
cleaning and CSFP Water Monthl
Water ubic 1,600.00
cooling of District y
Meter
manufacturing
facilities.
TOTAL 26,420.96
Table 4.22 Utilities – Factory
Waste Disposal Methods
Since Tatak Kapampangan is engaged in printing, sublimation papers are
used in the production of mugs, bags and wallets. After printing, these papers
are considered wastes. The company will collect these papers and will be
disposed by selling them to junk shops that will result to an extra income.
There are also excess cloths from the cutting process of bags, wallets and
pouches. These excess cloths have no use so the company plans to sell this
also to those who are producing rags.
One of the most important aspects in establishing a business is the
company’s properly maintenance of a clean environment. In order for this to
be successful, proper disposal of waste materials is a must. All waste
materials whether they are solid or liquid falls within the remit of waste
management. The company will implement proper waste segregation
according to its type like:

a) Green Garbage can – biodegradable waste like left over foods
b) Red Garbage can – non-biodegradable waste like biscuits and candy
wrappers.
This rules are strictly implemented to maintain the cleanliness in the store
and factory and avoid health problems for the workers and customers.
PRODUCTION COST
T-shirts Bags Wallets Mugs Key chains

Direct
Materials ₱ 2,501,116.80 ₱ 281,981.28 ₱ 240,033.36 ₱109,149.85 ₱ 456,947.50
used
Direct
239,616.00 142,125.18 213,187.76 14,095.06 214,800.00
Labor
Factory
501,889.82 100,377.96 150,566.94 33,459.32 752,834.72
Overhead
Manufacturi
3,242,622.62 524,484.42 603,788.07 156,704.23 1,424,582.23
ng Cost
Units of
31,200.00 6,240.00 9,360.00 2,080.00 46,800.00
Production
Unit Cost 103.93 84.05 64.51 75.34 30.44
50% Mark
1.50 1.50 1.50 1.50 1.50
Up on cost
Marked up
156 126 97 113 46
Price
Table 4.23 Production Cost
Note: There is an increase of 5% in price annually.
CHAPTER V FINANCIAL STUDY
Introduction
Putting up a business raises the need for adequate investment. Even
those tagged as “not for profit” cannot deny that money is essential in order to
established an organization and sustain all its necessities.
The financial study is an important aspect in doing business,
considering the numerous businesses that suffer due to mismanagement of its
financial aspect. Given this fact, an organization that aims for success must be
able to plot and put into action the best possible way to handle finances. In this
chapter, matters concerning financial activities will be discussed including the
capital needed in for the business to operate well, projected financial
statements and financial ratios. This chapter will illuminate how the partners’
investment will be spent as well as how money will flow in and out of the
business.
MAJOR FINANCIAL ASSUMPTIONS USED
Capital contribution of each partner is P625,000 with equal profit and loss
sharing
Cost of total Direct materials used is presumed to increase 10% annually
due to increase in production and 5% due to inflation and changes in

market indexes while purchases of indirect materials is presumed to
increase 5% due to inflation.
Purchases from Aetas is presumed to increase 10% annually. It is also
presumed that only 80% of inventory is sold in the first 2 years of
operations and 90% in the succeeding years.
Raw materials ending is only 2% VAT (input) exclusive of the annual
purchases
Raw materials used is 98% VAT (input) exclusive of the annual purchases
plus beginning inventory
It is presumed that only 80% of production is sold in the 1 st and 2ndyear
operations and 90% in the succeeding years plus beginning inventory.
The remaining 20% and 10% is retained in the finished goods ending.
Selling prices will increase 5% annually for the products produced due to
inflation while prices of the products of Aetas will increase 5% every two
years.
All factory expenses except depreciation, amortization, factory rent are
assumed to increase 5% annually due to inflation.
All operating expenses except depreciation, amortization, rental payment
and annual salaries related to the operations are assumed to increase
annually by 5% due to inflation.
Depreciation and amortization is computed using the straight line method
Purchases of raw materials are 80% paid at the end of the year.
Salaries increases 5% every two years.
Accrued expenses are assumed to be one month payable (utilities, SSS
contribution, Phil health contribution, HDMF contribution)
Every partner is entitled to a withdrawal of 20% based on their share in
profit and is fully utilized.
Income tax is estimated at 30% of the annual operating income
Initial Capital Expenditures
Prepaid Rent
Factory ₱ 72,000.00
Office and Store 180,000.00
Total ₱ 252,000.00
Table 5.1 Prepaid Rent
Utilities Installation
Telecommunication
₱ 2,300.00
Internet
Water 2,900.00
Total ₱ 5,200.00
Table 5.2 Utilities Installation
Machinery and Equipment

Factory ₱ 758,942.04
Store 35,452.00
Office 68,100.75
Total ₱ 862,494.79
Table 5.3 Machinery and Equipment
Delivery Truck
Delivery Truck ₱ 500,000.00
Table 5.4 Delivery Truck
Leasehold Improvement
Leasehold Improvement ₱ 200,000.00
Table 5.5 Leasehold Improvement
Furniture and Fixtures

Factory ₱ 44,949.00
Store 55,649.00
Office 24,088.50
Total ₱124,686.50
Table 5.6 Furniture and Fixtures
Supplies
Factory ₱ 20,168.85
Store 5,713.00
Office 8,170.00
Total ₱ 34,051.85
Table 5.7 Supplies
Taxes and Licenses

SEC Registration ₱3,000.00
BIR Registration 500.00
DTI Fee 2,000.00
Document Stamp Tax 15.00
Business Permit 200.00
Mayor's Permit 1,500.00
Sanitary 200.00
Fire Inspection Fee 50.00
TOTAL ₱7,465.00
Table 5.8 Taxes and Licenses
Initial Project Cost
Initial Fixed Capital Cost

Machinery and ₱ 862,494.79
Equipment
Delivery Truck 500,000.00
Furniture and 124,686.50

Fixtures
Leasehold 200,000.00 1,687,181.29
Improvement
Initial Capital Cost

Taxes and 7,465.00
Licenses
Prepaid Rent 252,000.00
Utilities Installation 5,200.00
Supplies 34,051.85 298,716.85
Initial Operating Cost

Estimated 1 month 335,436.53
cost of production
Petty Cash Fund 20,000.00 355,436.53
TOTAL PROJECT COST ₱ 2,341,334.67

Pre-Operating Cash Flow
Cash Flow from Operating Activities

Payment for Taxes and Licenses ₱
(7,465.00)
Payment for Prepaid Rent (252,000.00)
Payment for Utilities Installation (5,200.00)
Net Cash Flow from Operating (264,665.00)
Activities
Cash Flow from Investing Activities

Payment for Machinery and (862,494.79)
Equipment
Payment for Delivery Truck (500,000.00)
Payment for Furniture and Fixtures (124,686.50)
Payment for Leasehold improvement (200,000.00)
Net Cash Flow from Investing (1,687,181.29)
Activities
Cash Flow from Financing Activities

Investment from Partners 2,500,000.00
Net Cash Flow from Financing 2,500,000.00
Activities
Net Change in Cash ₱ 548,153.71

Pre-Operating Statement of Financial Position
ASSETS
2019
Current Assets
Cash and Cash Equivalents ₱ 548,153.71
Prepaid Expenses 264,665.00
Total Current Assets 812,818.71
Non-Current Assets
Machinery and Equipment 862,494.79
Delivery Truck 500,000.00
Furniture and Fixtures 124,686.50
Leasehold Improvements 200,000.00
Total Non-Current Assets 1,687,181.29
TOTAL ASSETS ₱ 2,500,000.00
LIABILITIES AND PARTNERS' EQUITY
PARTNERS' EQUITY
Isip, Kate M. 625,000.00
David, Lemuel Jeremiah S. 625,000.00
Serrano, Mark Anthony L. 625,000.00
Musni, Kevin R. 625,000.00
TOTAL PARTNERS' EQUITY 2,500,000.00
TOTAL LIABILITIES AND PARTNER'S EQUITY ₱ 2,500,000.00

FINANCIAL STATEMENTS
PROJECTED INCOME STATEMENT
Projected Statement of Financial Performance
For the years ended December 31
Note
2019 2020 2021 2022 2023
s
Net Sales 1 7,553,345.28 10,589,867.56 13,481,934.96 14,283,073.77 16,493,363.82
Less: Cost of Goods Sold 2 5,001,145.25 6,887,278.40 8,384,902.37 8,505,479.42 9,509,078.96
Gross Income 2,552,200.03 3,702,589.16 5,097,032.60 5,777,594.36 6,984,284.85
Less: Operating Expenses

Selling and
3 2,694,902.01 2,705,104.93 2,794,524.94 2,805,773.66 2,902,580.82
Administrative Expense
Income (Loss) before income taxes (142,701.98) 997,484.23 2,302,507.66 2,971,820.70 4,081,704.04
Net Operating Loss Carry Over (142,701.98)
Income after NOLCO 854,782.25
Income tax expense (30%) - 256,434.67 690,752.30 891,546.21 1,224,511.21
Other Income 4
7,929.08 17,512.61 41,121.57 58,426.18 83,196.02
Net Income (Loss)
(134,772.90) 615,860.19 1,652,876.93 2,138,700.67 2,940,388.85
Partner's share in Net Income - 153,965.05 413,219.23 534,675.17 735,097.21

PROJECTED CHANGES IN PARTNER’S EQUITY
Projected Statement of Changes in Partner's Equity
For the year ended December 31, 2019
Isip,
David, Capital Serrano, Capital Musni, Capital
Capital
Capital,
₱ 625,000.00 ₱ 625,000.00 ₱ 625,000.00 ₱ 625,000.00
Beginning
Add: Net Income - - - -
Total 625,000.00 625,000.00 625,000.00 625,000.00
Less: Drawings - - - -
Capital, Ending ₱ 625,000.00 ₱ 625,000.00 ₱ 625,000.00 ₱ 625,000.00
Isip,
Capital
Capital,
₱ 625,000.00 ₱ 625,000.00 ₱ 625,000.00 ₱ 625,000.00
Beginning
Add: Net Income 153,965.05 153,965.05 153,965.05 153,965.05
Total 778,965.05 778,965.05 778,965.05 778,965.05
Less: Drawings 30,793.01 30,793.01 30,793.01 30,793.01
Capital, Ending ₱ 748,172.04 ₱ 748,172.04 ₱ 748,172.04 ₱ 748,172.04
Isip
, Capital
Capital,
₱ 748,172.04 ₱ 748,172.04 ₱ 748,172.04 ₱ 748,172.04
Beginning
Add: Net Income 413,219.23 413,219.23 413,219.23 413,219.23
Total 1,161,391.27 1,161,391.27 1,161,391.27 1,161,391.27
Less: Drawings 82,643.85 82,643.85 82,643.85 82,643.85
Capital, Ending ₱ 1,078,747.42 ₱ 1,078,747.42 ₱ 1,078,747.42 ₱ 1,078,747.42
Isip,
Capital
Capital,
₱ 1,078,747.42 ₱ 1,078,747.42 ₱ 1,078,747.42 ₱ 1,078,747.42
Beginning
Add: Net
534,675.17 534,675.17 534,675.17 534,675.17
Income
Total 1,613,422.59 1,613,422.59 1,613,422.59 1,613,422.59
Less: Drawings 106,935.03 106,935.03 106,935.03 106,935.03
Capital, Ending ₱ 1,506,487.56 ₱ 1,506,487.56 ₱ 1,506,487.56 ₱ 1,506,487.56
Isip,
Capital
Capital,
₱ 1,506,487.56 ₱ 1,506,487.56 ₱ 1,506,487.56 ₱1,506,487.56
Beginning
Add: Net Income 735,097.21 735,097.21 735,097.21 735,097.21
Total 2,241,584.77 2,241,584.77 2,241,584.77 2,241,584.77
Less: Drawings 147,019.44 147,019.44 147,019.44 147,019.44
Capital, Ending ₱ 2,094,565.33 ₱ 2,094,565.33 ₱ 2,094,565.33 ₱2,094,565.33
PROJECTED STATEMENT OF FINANCIAL POSITION

Statement of Financial Position
ASSETS
Note 2019 2020 2021 2022 2023

Current Assets
Cash and Cash 5
1,011,135.20 2,208,934.69 5,159,895.40 7,322,793.54 10,418,820.91
Equivalents
Inventory 6 1,332,085.88 1,479,563.77 874,377.46 971,047.91 1,090,946.71
Total Current Assets 2,343,221.08 3,688,498.46 6,034,272.86 8,293,841.45 11,509,767.63
Non-Current Assets
Machinery and 7
776,665.40 690,836.01 605,006.62 519,177.23 433,347.84
Equipments
Delivery Truck 450,000.00 400,000.00 350,000.00 300,000.00 250,000.00
Furnitures and 8
109,588.53 94,490.56 79,392.59 64,294.62 49,196.65
Fixtures
Leasehold
180,000.00 160,000.00 140,000.00 120,000.00 100,000.00
Improvements
Total Non-Current Assets 1,516,253.93 1,345,326.57 1,174,399.21 1,003,471.85 832,544.49
TOTAL ASSETS 3,859,475.01 5,033,825.03 7,208,672.07 9,297,313.30 12,342,312.12
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
Trade and Other
1,359,475.01 2,041,136.88 2,893,682.38 3,271,363.07 3,964,050.81
Payables
TOTAL CURRENT LIABILITIES 1,359,475.01 2,041,136.88 2,893,682.38 3,271,363.07 3,964,050.81
PARTNERS' EQUITY
Isip, Kate M. 625,000.00 748,172.04 1,078,747.42 1,506,487.56 2,094,565.33
David, Lemuel
625,000.00 748,172.04 1,078,747.42 1,506,487.56 2,094,565.33
Jeremiah S.
Serrano, Mark
625,000.00 748,172.04 1,078,747.42 1,506,487.56 2,094,565.33
Anthony L.
Musni, Kevin R. 625,000.00 748,172.04 1,078,747.42 1,506,487.56 2,094,565.33
TOTAL PARTNERS' EQUITY 2,500,000.00 2,992,688.15 4,314,989.69 6,025,950.23 8,378,261.31
TOTAL LIABILITIES AND PARTNER'S

3,859,475.01 5,033,825.03 7,208,672.07 9,297,313.30 12,342,312.12
EQUITY
PROJECTED STATEMENT OF CASH FLOWS
Projected Statement of Cash Flow
CASH FLOW FROM OPERATING 2019 2020 2021 2022 2023

ACTIVITIES
Net Income - 615,860.19 1,652,876.93 2,138,700.67 2,940,388.85
Adjustments for:
Depreciation 150,927.36 150,927.36 150,927.36 150,927.36 150,927.36
Amortization 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00

(Increase) decrease in
current assets:
(1,332,085.88
Inventories (147,477.89) 605,186.31 (96,670.45) (119,898.80)
)
Prepaid Expenses 264,665.00
Increase (decrease) in:

Trade and Other
1,359,475.01 681,661.87 852,545.50 377,680.69 692,687.74
Payable
Net cash provided by operating activities 462,981.49 1,320,971.53 3,281,536.10 2,590,638.27 3,684,105.14
CASH FLOW FROM FINANCING ACTIVIES
Owner's Personal Drawing - (123,172.04) (330,575.39) (427,740.13) (588,077.77)
NET INCREASE (DECREASE) IN CASH 462,981.49 1,197,799.50 2,950,960.71 2,162,898.14 3,096,027.37
CASH AT THE BEGINNING OF THE YEAR 548,153.71 1,011,135.20 2,208,934.69 5,159,895.40 7,322,793.54
₱1,011,135.2 ₱2,208,934.6 ₱5,159,895.4 ₱7,322,793.5 ₱10,418,820.9
CASH AT THE END OF THE YEAR
0 9 0 4 1
NOTES TO FINANCIAL STATEMENTS
Note 1 - Net Sales
Net Sales, VAT (output)
₱ 8,459,747 ₱ 11,860,652 ₱ 15,099,767 ₱ 15,997,043 ₱18,472,567
Inclusive
12% VAT 1.12 1.12 1.12 1.12 1.12
Net Sales, VAT (output)
₱ 7,553,345 ₱ 10,589,868 ₱ 13,481,935 ₱ 14,283,074 ₱16,493,364
Exclusive
Note 2 - Cost of Goods Sold

For manufactured products:
Direct Materials used 3,589,228.79 4,218,808.82 4,872,724.19 5,627,996.44 6,500,335.89
Direct Labor 823,824.00 823,824.00 865,015.20 865,015.20 908,265.96
Manufacturing Overhead Cost:
Indirect Materials 20,168.85 21,177.29 22,236.16 23,347.96 24,515.36
Indirect Labor 827,076.00 827,076.00 868,429.80 868,429.80 911,851.29
Utilities Expense 317,051.52 332,904.10 349,549.30 367,026.77 385,378.10
Rent Expense 288,000.00 288,000.00 288,000.00 288,000.00 288,000.00
Depreciation Expense 76,832.40 76,832.40 76,832.40 76,832.40 76,832.40
Amortization - Lease
10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Improvements
Total Manufacturing Overhead 1,539,128.77 1,555,989.79 1,615,047.66 1,633,636.93 1,696,577.16
Total Cost of Goods
5,952,181.56 6,598,622.61 7,352,787.05 8,126,648.57 9,105,179.01
Manufactured
Add: Finished Goods,
- 1,190,436.31 1,319,724.52 735,278.70 812,664.86
beginning
Total Cost of Goods available
5,952,181.56 7,789,058.92 8,672,511.57 8,861,927.28 9,917,843.86
for sale
Less: Finished Goods, ending 1,190,436.31 1,319,724.52 735,278.70 812,664.86 910,517.90
Cost of Goods Sold 4,761,745.25 6,469,334.40 7,937,232.87 8,049,262.42 9,007,325.96
For Purchased Products:
WOODCRAFTS
Medicine Cabinet/Other Cabinets
Merchandise
Inventory, - 7,200.00 7,920.00 4,350.00 4,800.00
Beginning
Net
36,000.00 39,600.00 43,560.00 47,916.00 52,707.60
Purchases
Goods
36,000.00 50,400.00 51,420.00 52,350.00 57,600.00
Available for Sale
Merchandise
7,200.00 7,920.00 4,356.00 4,791.60 5,270.76
Inventory, Ending
Cost of
25,200.00 42,480.00 47,070.00 47,550.00 52,320.00
Goods Sold
House Bank
Merchandise - 10,800.00 11,880.00 6,540.00 7,200.00

Inventory,
Beginning
Net
54,000.00 59,400.00 65,340.00 71,874.00 79,061.40
Purchases
Goods
54,000.00 75,600.00 77,280.00 78,540.00 86,400.00
Available for Sale
Merchandise
10,800.00 11,880.00 6,534.00 7,187.40 7,906.14
Inventory, Ending
Cost of
37,800.00 63,720.00 70,740.00 71,340.00 78,480.00
Goods Sold
Bamboo Bank
Merchandise
Inventory, - 7,200.00 7,920.00 4,357.50 4,792.50
Beginning
Net
36,000.00 39,600.00 43,560.00 47,916.00 52,707.60
Purchases
Goods
36,000.00 50,400.00 51,495.00 52,282.50 57,517.50
Available for Sale
Merchandise
7,200.00 7,920.00 4,356.00 4,791.60 5,270.76
Inventory, Ending
Cost of
25,200.00 42,480.00 47,137.50 47,490.00 52,245.00
Goods Sold
Bamboo Tray
Merchandise
Inventory, - 5,040.00 5,544.00 3,052.00 3,353.00
Beginning
Net
25,200.00 27,720.00 30,492.00 33,541.20 36,895.32
Purchases
Goods
25,200.00 35,280.00 36,064.00 36,582.00 40,243.00
Available for Sale
Merchandise
5,040.00 5,544.00 3,049.20 3,354.12 3,689.53
Inventory, Ending
Cost of
17,640.00 29,736.00 33,012.00 33,229.00 36,554.00
Goods Sold
Wind Chime
Merchandise
Inventory, - 8,400.00 9,240.00 5,082.00 5,593.00
Beginning
Net
42,000.00 46,200.00 50,820.00 55,902.00 61,492.20
Purchases
Goods
42,000.00 58,800.00 60,060.00 61,012.00 67,053.00
Available for Sale
Merchandise
8,400.00 9,240.00 5,082.00 5,590.20 6,149.22
Inventory, Ending
Cost of
29,400.00 49,560.00 54,978.00 55,419.00 60,907.00
Goods Sold
Water Whistle
Merchandise
Inventory, - 3,600.00 3,960.00 2,180.00 2,395.00
Beginning
Net
18,000.00 19,800.00 21,780.00 23,958.00 26,353.80
Purchases
Goods
18,000.00 25,200.00 25,760.00 26,130.00 28,745.00
Available for Sale
Merchandise
3,600.00 3,960.00 2,178.00 2,395.80 2,635.38
Inventory, Ending
Cost of 12,600.00 21,240.00 23,580.00 23,735.00 26,110.00
Goods Sold
DÉCOR
Refrigerator Magnets
Merchandise
Inventory, - 6,000.00 6,600.00 3,630.00 3,995.00
Beginning
Net
30,000.00 33,000.00 36,300.00 39,930.00 43,923.00
Purchases
Goods
30,000.00 42,000.00 42,900.00 43,580.00 47,895.00
Available for Sale
Merchandise
6,000.00 6,600.00 3,630.00 3,993.00 4,392.30
Inventory, Ending
Cost of
21,000.00 35,400.00 39,270.00 39,585.00 43,505.00
Goods Sold
Wall clock
Merchandise
Inventory, - 7,200.00 7,920.00 4,360.00 4,800.00
Beginning
Net
36,000.00 39,600.00 43,560.00 47,916.00 52,707.60
Purchases
Goods
36,000.00 64,800.00 51,520.00 52,360.00 57,600.00
Available for Sale
Merchandise
7,200.00 7,920.00 4,356.00 4,791.60 5,270.76
Inventory, Ending
Cost of
25,200.00 56,880.00 47,160.00 52,360.00 57,600.00
Goods Sold
Picture Frames
Merchandise
Inventory, - 3,840.00 4,220.00 2,320.00 2,560.00
Beginning
Net
19,200.00 21,120.00 23,232.00 25,555.20 28,110.72
Purchases
Goods
19,200.00 26,860.00 27,420.00 27,920.00 30,660.00
Available for Sale
Merchandise
3,840.00 4,220.00 2,323.20 2,555.52 2,811.07
Inventory, Ending
Cost of
13,440.00 22,640.00 25,100.00 25,360.00 27,850.00
Goods Sold
BOOK ACCESSORIES
Thumb Thing Book holder
Merchandise
Inventory, - 2,880.00 3,168.00 1,740.00 1,914.00
Beginning
Net
14,400.00 15,840.00 17,424.00 19,166.40 21,083.04
Purchases
Goods
14,400.00 20,160.00 20,568.00 20,880.00 22,974.00
Available for Sale
Merchandise
2,880.00 3,168.00 1,742.40 1,916.64 2,108.30
Inventory, Ending
Cost of
10,080.00 16,992.00 18,828.00 18,966.00 20,868.00
Goods Sold
Book Stand
Merchandise
Inventory, - 4,800.00 5,280.00 2,900.00 3,200.00
Beginning
Net
24,000.00 26,400.00 29,040.00 31,944.00 35,138.40
Purchases
Goods
24,000.00 33,600.00 34,280.00 34,900.00 38,400.00
Available for Sale
Merchandise
4,800.00 5,280.00 2,904.00 3,194.40 3,513.84
Inventory, Ending
Cost of
16,800.00 28,320.00 31,380.00 31,700.00 34,880.00
Goods Sold
Book Marks
Merchandise
Inventory, - 1,440.00 1,584.00 870.00 957.00
Beginning
Net
7,200.00 7,920.00 8,712.00 9,583.20 10,541.52
Purchases
Goods
7,200.00 10,080.00 10,284.00 10,440.00 11,487.00
Available for Sale
Merchandise
1,440.00 1,584.00 871.20 958.32 1,054.15
Inventory, Ending
Cost of
5,040.00 8,496.00 9,414.00 9,483.00 10,434.00
Goods Sold
TOTAL COST OF GOODS

5,001,145.25 6,887,278.40 8,384,902.37 8,505,479.42 9,509,078.96
SOLD
Note 3 - Selling and Administrative Expense

Salaries 1,176,000.00 1,176,000.00 1,234,800.00 1,234,800.00 1,296,540.00
SSS, Employer 202,438.80 202,438.80 208,623.60 208,623.60 217,471.20
Phil Health, Employer 38,869.92 38,869.92 40,813.32 40,813.32 42,854.04
HDMF, Employer 26,400.00 26,400.00 26,400.00 26,400.00 26,400.00
13th Month Pay 235,575.00 235,575.00 247,353.75 247,353.75 259,721.44
Advertising Expense 42,912.18 45,057.79 47,310.68 49,676.21 52,160.02
Gas and Oil Expense 31,024.56 32,575.79 34,204.58 35,914.81 37,710.55
Depreciation - Delivery
50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Truck
Amortization -
Leasehold 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Improvement
Rent Expense 720,000.00 720,000.00 720,000.00 720,000.00 720,000.00
Utilities Expense 116,238.60 122,050.53 128,153.06 134,560.71 141,288.74
Depreciation - Office
14,010.55 14,010.55 14,010.55 14,010.55 14,010.55
and Store Equipment
Depreciation - Furniture
10,084.40 10,084.40 10,084.40 10,084.40 10,084.40
and Fixtures
Store Supplies
5,713.00 5,998.65 6,298.58 6,613.51 6,944.19
Expense
Office Supplies
8,170.00 8,578.50 9,007.43 9,457.80 9,930.69
Expense
Taxes and Licenses 7,465.00 7,465.00 7,465.00 7,465.00 7,465.00
TOTAL SELLING &

ADMINISTRATIVE 2,694,902.01 2,705,104.93 2,794,524.94 2,805,773.66 2,902,580.82
EXPENSE
Note 4 - Other Income

Cash in Bank 991,135.20 2,189,076.66 5,140,195.91 7,303,272.78 10,399,502.31
Interest 1% 1% 1% 1% 1%
Interest Income 9,911.35 21,890.77 51,401.96 73,032.73 103,995.02
Final Withholding
1,982.27 4,378.15 10,280.39 14,606.55 20,799.00
Tax, 20%
Interest Income, net
7,929.08 17,512.61 41,121.57 58,426.18 83,196.02
of Tax
Note 5 - Cash and Cash Equivalents

Petty Cash
20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Fund
Cash in Bank 991,135.20 2,188,934.69 5,139,895.40 7,302,793.54 10,398,820.91
Total 1,011,135.20 2,208,934.69 5,159,895.40 7,322,793.54 10,418,820.91
Note 6 – Inventory
1,190,436.3
Finished Goods 1,319,724.52 735,278.70 812,664.86 910,517.90
1
Raw Materials 73,249.57 84,603.25 97,716.75 112,862.85 130,356.59
Merchandise
68,400.00 75,236.00 41,382.00 45,520.20 50,072.22
Inventory
1,332,085.8
Total 1,479,563.77 874,377.46 971,047.91 1,090,946.71
8
Note 7 - Machinery and Equipment

Factor
687,123.20 615,304.36 543,485.52 471,666.70 399,847.84
y
Store 29,861.60 24,271.20 18,680.80 13,090.40 7,500.00
Office 59,680.60 51,260.45 42,840.30 34,420.13 26,000.00
Total 776,665.40 690,836.01 605,006.62 519,177.23 433,347.84
Note 8 - Furniture and Fixtures

Factor
39,935.43 34,921.87 29,908.30 24,894.73 19,881.17
y
Store 49,192.95 42,736.90 36,280.85 29,824.80 23,368.75

Office 20,460.15 16,831.80 13,203.45 9,575.10 5,946.75
Total 109,588.53 94,490.57 79,392.60 64,294.63 49,196.67
Note 9 - Trade and Other Payables

Accounts Payable -
820,395.15 947,556.40 1,094,427.64 1,264,063.93 1,459,993.84
Materials
SSS Payable -
8,320.10 8,320.10 8,574.70 8,574.70 8,927.80
Employee
Phil health Payable -
3,239.16 3,239.16 3,401.11 3,401.11 3,571.17
Employee
HDMF Payable -
2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
Employee
SSS Payable -
16,869.90 16,869.90 17,385.30 17,385.30 18,122.60
Employer
Phil health Payable -
3,239.16 3,239.16 3,401.12 3,401.12 3,571.18
Employer
HDMF Payable -
2,200.00 2,200.00 2,200.00 2,200.00 2,200.00
Employer
Utilities Payable 36,107.51 37,912.89 39,808.54 41,798.95 43,888.91
Vat Payable 466,904.03 763,164.61 1,031,531.67 1,036,791.75 1,197,064.10
Income Tax Payable 27,861.91 369,917.77 764,958.42 965,752.33 1,302,427.64
Total 1,387,336.91 2,154,619.97 2,967,888.51 3,345,569.20 4,041,967.24
SUPPORTING NOTES: Depreciation Schedule
CARRYING CARRYING CARRYING CARRYING CARRYING

MACHINERY AND EQUIPMENT - FACTORY
AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT
USEFUL ANNUAL
Particulars TOTAL COST YEAR 2019 YEAR 2020 YEAR 2021 YEAR 2022 YEAR 2023
LIFE DEPN
Heat Press Machine 7,500.00 10 750.00 6,750.00 6,000.00 5,250.00 4,500.00 3,750.00
Heat Press Machine (For
7,500.00 10 750.00 6,750.00 6,000.00 5,250.00 4,500.00 3,750.00
mugs)
Screen Printing Machine 14,500.00 10 1,450.00 13,050.00 11,600.00 10,150.00 8,700.00 7,250.00
Printer 30,000.00 6 5,000.00 25,000.00 20,000.00 15,000.00 10,000.00 5,000.00
Sewing Machine 24,000.00 10 2,400.00 21,600.00 19,200.00 16,800.00 14,400.00 12,000.00

Laser Cutting and Engraver
316,515.54 15 21,101.04 295,414.50 274,313.47 253,212.43 232,111.40 211,010.36
Machine
Automatic Coloring Machine 250,000.00 10 25,000.00 225,000.00 200,000.00 175,000.00 150,000.00 125,000.00
Polishing Machine 24,400.00 10 2,440.00 21,960.00 19,520.00 17,080.00 14,640.00 12,200.00
Iron 2,400.00 5 480.00 1,920.00 1,440.00 960.00 480.00 -
Ceiling Fan 3,675.00 5 735.00 2,940.00 2,205.00 1,470.00 735.00 -
Exhaust Fan 17,850.00 20 892.50 16,957.50 16,065.00 15,172.50 14,280.00 13,387.50
Computer Set 13,000.00 10 1,300.00 11,700.00 10,400.00 9,100.00 7,800.00 6,500.00

Water Dispenser 1,300.00 5 260.00 1,040.00 780.00 520.00 260.00 -
Fire Extinguisher 2,400.00 5 480.00 1,920.00 1,440.00 960.00 480.00 -
Fire Alarm 300.00 5 60.00 240.00 180.00 120.00 60.00 -
CCTV Camera 4,400.00 5 880.00 3,520.00 2,640.00 1,760.00 880.00 -
Generator 37,000.00 5 7,400.00 29,600.00 22,200.00 14,800.00 7,400.00 -
Emergency Light 2,201.50 5 440.30 1,761.20 1,320.90 880.60 440.30 -
TOTAL 758,942.04 71,818.84 687,123.20 615,304.37 543,485.53 471,666.70 399,847.86

MACHINERY AND EQUIPMENT - OFFICE
TOTAL USEFUL
Particulars ANNUAL DEPN YEAR 2019 YEAR 2020 YEAR 2021 YEAR 2022 YEAR 2023
COST LIFE
Computer Set 39,000.00 10 3,900.00 35,100.00 31,200.00 27,300.00 23,400.00 19,500.00
Printer 15,000.00 6 2,500.00 12,500.00 10,000.00 7,500.00 5,000.00 2,500.00
Air Conditioner 8,000.00 10 800.00 7,200.00 6,400.00 5,600.00 4,800.00 4,000.00
Water Dispenser 1,300.00 5 260.00 1,040.00 780.00 520.00 260.00 -
Fire Extinguisher 1,200.00 5 240.00 960.00 720.00 480.00 240.00 -
Fire Alarm 300.00 5 60.00 240.00 180.00 120.00 60.00 -
CCTV Camera 2,200.00 5 440.00 1,760.00 1,320.00 880.00 440.00 -
Emergency Light 1,100.75 5 220.15 880.60 660.45 440.30 220.15 -
TOTAL 68,100.75 8,420.15 59,680.60 51,260.45 42,840.30 34,420.15 26,000.00

MACHINERY AND EQUIPMENT - STORE
USEFUL ANNUAL
LIFE DEPN
Cashier Counter
20,452.00 5 4,090.40 16,361.60 12,271.20 8,180.80 4,090.40 -
Machine
Air Conditioner 15,000.00 10 1,500.00 13,500.00 12,000.00 10,500.00 9,000.00 7,500.00
TOTAL 35,452.00 5,590.40 29,861.60 24,271.20 18,680.80 13,090.40 7,500.00

DELIVERY TRUCK
Particulars TOTAL COST USEFUL LIFE ANNUAL DEPN YEAR 2019 YEAR 2020 YEAR 2021 YEAR 2022 YEAR 2023
Delivery
500,000.00 10 50,000.00 450,000.00 400,000.00 350,000.00 300,000.00 250,000.00
Truck
TOTAL 500,000.00 50,000.00 450,000.00 400,000.00 350,000.00 300,000.00 250,000.00

FURNITURE AND FIXTURES - FACTORY
ANNUAL
Particulars TOTAL COST USEFUL LIFE YEAR 2019 YEAR 2020 YEAR 2021 YEAR 2022 YEAR 2023
DEPN
Table 4,500.00 5 900.00 3,600.00 2,700.00 1,800.00 900.00 -
Long
32,000.00 10 3,200.00 28,800.00 25,600.00 22,400.00 19,200.00 16,000.00
Table
Chairs 1,350.00 5 270.00 1,080.00 810.00 540.00 270.00 -
Mono
5,109.00 10 510.90 4,598.10 4,087.20 3,576.30 3,065.40 2,554.50
Block
Ironing
1,990.00 15 132.67 1,857.33 1,724.67 1,592.00 1,459.33 1,326.67
Board
TOTAL 44,949.00 5,013.57 39,935.43 34,921.87 29,908.30 24,894.73 19,881.17

FURNITURE AND FIXTURES - OFFICE
ANNUAL
Particulars TOTAL COST USEFUL LIFE YEAR 2019 YEAR 2020 YEAR 2021 YEAR 2022 YEAR 2023
DEPN
Office Chair 1,350.00 5 270.00 1,080.00 810.00 540.00 270.00 -
Office Table 4,500.00 5 900.00 3,600.00 2,700.00 1,800.00 900.00 -

Filing
5,598.00 10 559.80 5,038.20 4,478.40 3,918.60 3,358.80 2,799.00
Cabinets
Storage
6,345.00 5 1,269.00 5,076.00 3,807.00 2,538.00 1,269.00 -
Cabinets
Dining Set 6,295.50 10 629.55 5,665.95 5,036.40 4,406.85 3,777.30 3,147.75
TOTAL 24,088.50 3,628.35 20,460.15 16,831.80 13,203.45 9,575.10 5,946.75

FURNITURE AND FIXTURES - STORE
USEFUL
Particulars TOTAL COST ANNUAL DEPN YEAR 2019 YEAR 2020 YEAR 2021 YEAR 2022 YEAR 2023
LIFE
Counter Table 5,650.00 8 706.25 4,943.75 4,237.50 3,531.25 2,825.00 2,118.75
Counter Chair 1,299.00 5 259.80 1,039.20 779.40 519.60 259.80 -
Display Shelves 16,500.00 10 1,650.00 14,850.00 13,200.00 11,550.00 9,900.00 8,250.00
Gondola Shelves 22,000.00 10 2,200.00 19,800.00 17,600.00 15,400.00 13,200.00 11,000.00
Three Seater Chair 6,200.00 5 1,240.00 4,960.00 3,720.00 2,480.00 1,240.00 -

Retail Display
4,000.00 10 400.00 3,600.00 3,200.00 2,800.00 2,400.00 2,000.00
Shelves
TOTAL 55,649.00 6,456.05 49,192.95 42,736.90 36,280.85 29,824.80 23,368.75
AMORTIZATION SCHEDULE

LEASEHOLD IMPROVEMENT - STORE & FACTORY
USEFUL ANNUAL
LIFE AMORTIZATION
Leasehold
200,000.00 10 20,000.00 180,000.00 160,000.00 140,000.00 120,000.00 100,000.00
Improvement
TOTAL 200,000.00 20,000.00 180,000.00 160,000.00 140,000.00 120,000.00 100,000.00
SUPPORTING COMPUTATION
PURCHASES
Raw Materials, beginning 73,249.57 84,603.25 97,716.75 112,862.85
*Purchases VAT Exclusive 3,662,478.36 4,230,162.51 4,885,837.69 5,643,142.54 6,517,829.63
Total 3,662,478.36 4,303,412.07 4,970,440.94 5,740,859.29 6,630,692.48
Raw Materials, ending 73,249.57 84,603.25 97,716.75 112,862.85 130,356.59
Direct Materials used 3,589,228.79 4,218,808.82 4,872,724.19 5,627,996.44 6,500,335.89
*Purchases VAT Exclusive 3,662,478.36 4,230,162.51 4,885,837.69 5,643,142.54 6,517,829.63

Divided by 112% 112% 112% 112% 112%
Purchases VAT Inclusive 4,101,975.76 4,737,782.01 5,472,138.22 6,320,319.64 7,299,969.19
VAT PAYABLE
2019 2020 2021 2022 2023
Net Sales 8,459,746.71 11,860,651.67 15,099,767.16 15,997,042.63 18,472,567.47
Purchases 4,101,975.76 4,737,782.01 5,472,138.22 6,320,319.64 7,299,969.19
Excess 4,357,770.95 7,122,869.66 9,627,628.94 9,676,722.99 11,172,598.29
Divided by 112% 112% 112% 112% 112%
VAT Exclusive 3,890,866.92 6,359,705.05 8,596,097.27 8,639,931.24 9,975,534.19
Total VAT Payable 466,904.03 763,164.61 1,031,531.67 1,036,791.75 1,197,064.10
FINANCIAL RATIOS
LIQUIDITY RATIO
2019 2020 2021 2022 2023

2,343,221.0 3,688,498.4 6,034,272.8 8,293,841.4 11,509,767.6
Current Assets
8 6 6 5 3
Current 1,359,475.0 2,041,136.8 2,893,682.3 3,271,363.0
3,964,050.81
Liabilities 1 8 8 7
Current Ratio 1.72 1.81 2.09 2.54 2.90
SOLVENCY RATIO
2019 2020 2021 2022 2023
Total Liabilities 1,359,475.01 2,041,136.88 2,893,682.38 3,271,363.07 3,964,050.81
Total Equity 2,500,000.00 2,992,688.15 4,314,989.69 6,025,950.23 8,378,261.31
Debt to Equity
0.54 0.68 0.67 0.54 0.47
Ratio
2019 2020 2021 2022 2023

Total
1,359,475.01 2,041,136.88 2,893,682.38 3,271,363.07 3,964,050.81
Liabilities
Total Asset 3,859,475.01 5,033,825.03 7,208,672.07 9,297,313.30 12,342,312.12
Debt Ratio 0.35 0.41 0.40 0.35 0.32
2019 2020 2021 2022 2023

Total Equity 2,500,000.00 2,992,688.15 4,314,989.69 6,025,950.23 8,378,261.31
Tot
al
3,859,475.01 5,033,825.03 7,208,672.07 9,297,313.30 12,342,312.12
Ass
et
Equity Ratio 0.65 0.59 0.60 0.65 0.68
PROFITABILITY RATIO
2019 2020 2021 2022 2023

Net
Income
- 615,860.19 1,652,876.93 2,138,700.67 2,940,388.85
Sales 7,553,345.28 10,589,867.56 13,481,934.96 14,283,073.77 16,493,363.82
Return
on Sales
- 0.06 0.12 0.15 0.18
2019 2020 2021 2022 2023

Operating
Profit
- 997,484.23 2,302,507.66 2,971,820.70 4,081,704.04
7,553,345.2
Sales 10,589,867.56 13,481,934.96 14,283,073.77 16,493,363.82
8
Operating
Profit Ratio
- 0.09 0.17 0.21 0.25
2019 2020 2021 2022 2023

2,552,200.0
Gross Profit 3,702,589.16 5,097,032.60 5,777,594.36 6,984,284.85
3
7,553,345.2 10,589,867.5 13,481,934.9 14,283,073.7 16,493,363.8
Sales
8 6 6 7 2
Gross Profit
Ratio
0.34 0.35 0.38 0.40 0.42
2019 2020 2021 2022 2023

Net Income - 615,860.19 1,652,876.93 2,138,700.67 2,940,388.85
2,500,000.0 2,500,000.0
Initial Investment 2,500,000.00 2,500,000.00 2,500,000.00
0 0
Return on
Investment
- 0.25 0.66 0.86 1.18
2019 2020 2021 2022 2023

Net Income - 615,860.19 1,652,876.93 2,138,700.67 2,940,388.85

Total Assets 3,859,475.01 5,033,825.03 7,208,672.07 9,297,313.30 12,342,312.12
Return on
- 0.12 0.23 0.23 0.24
Assets
2019 2020 2021 2022 2023
Net Income - 615,860.19 1,652,876.93 2,138,700.67 2,940,388.85
Depreciation 150,927.36 150,927.36 150,927.36 150,927.36 150,927.36
Amortization 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Total Cash
Inflows
170,927.36 786,787.55 1,823,804.29 2,309,628.03 3,111,316.21
Total Cash Inflows Balances Year

Initial Investment 2,500,000.00 170,927.36 2,329,072.64 1 year
786,787.55 1,542,285.09 1 year
1,823,804.29 0 0.85
PAYBACK PERIOD = 2.85 years

CHAPTER VI SOCIO-ECONOMIC STUDY
Introduction
Corporate Social Responsibility as defined by World Business Council for
Sustainable Development (WBCSD), is the continuing commitment by
business to behave ethically and contribute to sustainable economic
development while improving the quality of life of the workforce and their
families as well as of the local community and society’s sustainability and
development. In other words, it is the ethical behavior of a company towards
society.
In line with this, the proponents established a business that will generate
benefits to various sectors of the society. Aside from profit, one of its primary
concerns is to promote Kapampangan’s products, cultures, traditions, festivals
and many more. The business will provide employment to persons who are
qualified. It will also generate taxes for government use for the economic
growth.
The Employees
The employment which this project will create can provide a stable
income to its employees. Workers will also benefit from Social Security
System (SSS), Phil Health and PAG-IBIG which are mandated by law.
This will add an opportunity for people to land a job that will develop their
creativity, enhance their personality along with the improvement of their
way of life.
The Government
The government may likewise benefit from the project through its
taxes. This will increase the government’s revenue and can be used to
further enhance and fund government projects such as infrastructure,
health services and education. With this, a mutual benefit between the
government and taxpayer is expected. Tatak Kapampangan helps the
Tourism Department of Pampanga in showcasing the beautiful places and
spots in the province through the products that it offers.
The Customers
The proposed business will provide quality products to its
customers by ensuing their satisfaction and by exceeding their
expectations. The customers will be always treated right and with respect
to add customer value. This can be an advantage of the company over
those of its competitors. The company also provides souvenirs that holds
the experiences and memories of the tourists in the province.
The Suppliers
The supplier for the woodcrafts, decors and book accessories will be the
Aetas of Villa Maria in Porac. It is also a way of helping their community grow
and show their talents when it comes to arts and crafts. Acquiring the best and
right supplier is a one of the key to success of a business to exist more than its
expected life in years. Loyalty and having a harmonious relationship towards
each other are factors to minimize the expense and maximize the revenue of
each company’s business.
The Environment
The environment should always be considered whenever to build a
business or any infrastructure. Establishing an eco-friendly environment is a
factor that is considered by the company by using ‘Katsa’ and the method of
printing.
The Community
This is one of the big factors that the company view in establishing the
business. The company should prioritize the welfare of the people living around
the specific location to help lessen the number of unemployed person that will
help eventually to the economic growth of the country. Tatak Kapampangan will
be able to help the whole province of Pampanga in promoting the culture and
showing the talents of katutubo in the province.
REFERENCES
https://journals.openedition.org/teoros/2653
http://www.londonhut.com/p/what-are-souvenirs-and-why-do-we-buy-them
https://en.m.wikipedia.org/wiki/Gift_shop
https://www.google.com.ph/amp/s/m.wikihow.com/Use-a-Yudu-Screen-
Printing-Machine%3famp=1
https://www.tourismtattler.com/articles/marketing/the-history-of-
souvenirs/15366
APPENDICES
Survey Questionnaire
Employee Uniform
Figure 1 Uniform – Factory
Figure 2 Uniform – Store
BIR FORM
SANITARY PERMIT
MAYOR’S PERMIT
FIRE SAFETY INSPECTION CERTIFICATE

BUSINESS PERMIT
SSS CONTRIBUTION TABLE

PHILHEALTH CONTRIBUTION TABLE

HDMF CONTRIBUTION TABLE

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TATAK KAPAMPANGAN 1

CHAPTER I PROJECT BACKGROUND

Tourist and residents define the meaning of a place by actually being

souvenir retail shop takes on more meaning in the travel destination

greatest part of the tourism product is intangible shopping for souvenirs as

mementos of the destination, it provides a tangible object symbolizing the

of souvenirs can be a means of supporting a relationship with others in

social psychological perspectives. To sun and colleagues found that these

experiences, and serve as trophies (or proof of travel) in their homes or

offices, and they suggest that providing a higher level of shopping

experience for tourist and increasing the contribution of shopping to the

regional economy require supporting indigenous, local people to fabricate

and retail authentic handicrafts and souvenirs.

EVOLUTION OF SOUVENIR SHOPS

THE FIRST SOUVENIR

 People started acquiring tokens and mementos from visited

 Amber beads from Scandinavia were found in Ireland and are

believed to be the very first souvenir.

statues, thinking that they were transporting the miraculous powers

 To stop this trend, churches started to produce souvenirs for pilgrims to

some of the first souvenirs created.

THE FIRST MASS-PRODUCES SOUVENIRS

 Pilgrim badges, which were easier to manufacture than ampulla, soon

became the souvenir of choice and were available at shrines across

Europe in vast numbers & designs.

THE ULTIMATE EUROPIAN EXCURSION

 The Grand Tour was a traditional coming-of-age trip undertaken by

wealthy travelers which started in Europe.

 It was fashionable to return with a variety of paintings, personal portraits,

sculptures, fine clothes and monuments as a show of their new found

SOUVENIR MANIA: COLLECTING SPOONS

 Souvenir spoons were produced in thousands of designs to

commemorate American cities, towns, famous people, and significant

THE SOUVENIR BOOM

 As travelling became more affordable, and industry for inexpensive

souvenirs rocketed, giving rise to even more types of vacation

keepsakes. Popular ones in England included painted images of seaside

towns on vases and figurines.

 Souvenir cups depicting various destinations enjoyed a golden age,

followed by small paintings and the picture postcard in the 1890s.

 The World’s LARGEST GIFT SHOP in Las Vegas is as big as 3 Olympic

sized Swimming Pools.

 It is CUSTOMARY for Japanese travelers to buy OMIYAGE, gift-packed

edible souvenirs for friends and colleagues. They usually allocate ½

suitcase of space for these.

The word 'souvenir' is actually a French word meaning remembrance

or memory. Souvenirs are also referred to as keepsakes or mementos and

Many people like to take a little something home with them as a

dependent on Pampanga's agricultural, fishery, and forestry products as well

as on the supply of skilled workers and breed of courageous, intelligent,

people, and their passions continue to make an indelible mark on the

country's unfolding social, cultural, and economic tapestry.

No wonder that Pampanga is rich with picturesque landscape and

not to say, though, that Pampanga is not without modern recreational

Based on the visitor statistics of the Department of Tourism, the

2015 - 1,414,809; 2016 - 1,610,096; partial tourist arrivals of 2017 - 801,089.

Based on the given data, tourism in Pampanga is obviously improving with

the increasing number of tourist arrivals in the province. This is a good

indicator that businesses such as a souvenir shop is in demand in the

Souvenir is an important component of the travel experience and

most tourists return home with souvenirs to preserve and commemorate

such experiences. These souvenirs serves as a badge of honor that