II.

MANAGEMENT ASPECT

A. Ownership and Source of Financing

CPA Coolers Tea Shop will be a limited partnership owned by 4 distinct and juridical
partners conjoined and agreed to the terms and conditions, signed and submitted by them, on
the organization and management of the business.

Each partner will contribute an equal amount of P500, 000 cash for a total capital of P2,
000,000. Included in the capital is the amount that will be covered for the incurred expenses
and other costs prior to the initial operation of the business.

Partners will have to vote who among themselves will represent as a manager of the
business based on what is required by the position being offered. The elected manager will be
responsible of reporting the weekly progress of the business to his co-partners. The
remaining partners will still help looking after the business. Six (6) employees with the
necessary skills will still be hired.

B. Pre-operating Activities

Pre-operating activities are those undertaken prior to start of the operation of the
business. The management will be the one to prepare the whole business plan during this
period.

A feasibility study is prepared first. This ensures if the business would be viable or not. It
ascertains its benefits to the owners as well as its contributions to the economy as a whole.

After the feasibility has been analyzed, the attainment of necessary funds needed follows.
The proposed business will be funded by the investments made by the partners alone.

After obtaining sufficient funds, the partners will be searching for a strategic location for
the business. therefter, the partners shall meet the owner of the building that will be used as
the area of the business. The partners shall enter into a lease contract with a monthly rental of
but subject to one month advance and one month deposit. Then, the business will be
registered to acquire all licenses and permits necessary for it to legally operate.

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 Upon the completion of leasehold improvements are done within the allotted time of three
weeks, assets needed such as equipments, furnitures, supplies, etc. shall be purchased. Upon
the acquisition, the equipment shall be installed. The acquisition and installation’s allotted
time is two weeks. Together with the purchase and installation of these assets on the second
week, the management will start hiring needed and suitable employees. Afterwards, the hired
employees shall be trained.

Lastly, advertisement and promotion shall be executed one week before the formal operation
of the business.

Figure 1

GANTT CHART

Time (Week)
st nd rd th th
Activities 1 2 3 4 5 6th 7th 8th 9th 10yh 11th 12th
Feasibility study
Capital contribution
Obtaining the site selected
Legal Requirements
Leasehold Improvement
Asset Acqisition and
Installation
Hiring of Employees
Training of Employees
Advertising and Promotion

GANTT CHART

Scheduling chart: a chart in which horizontal lines show the actual and projected amounts
of time involved in completing a particular task or reaching specific levels of production.

Table 1
Pre-Operating Expenses

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 Expenses Budgeted Amount
Feasibility Study P2,000.00
Prepaid Rent
Legal Requirements P6,000
Leasehold Improvement P320,000
Asset Acquisition and Installation
Employee Hiring and Training P10,500
Advertisement and Promotion P11,000
TOTAL

Table 2 shows the amount budgeted by the partners for CPA Cooler’s pre-
operating Expenses.

C. Management during the Operating Period

Partners agreed to manage the business through a scheduled time wherein one partner
will report weekly and will be replaced by another partner thereafter. Division of works,
aside from managerial work, will be assigned to the four partners. One partner will be
responsible for the legal papers of the business, one partner for the accounting and budgeting
of the business, one for the research for the improvement and enhancement of the business,
and one for the hiring and training of the employees.

To ensure the effectiveness and success of the business, it shall be operated and managed
by skilled and well-trained personnel. It will be composed of (2) production workers, (1)
cashier, (1) dishwasher, and (2) waiters. The operation of the proposed business shall be
twelve (12) hours daily.

Figure 2

HUMAN RESOURCES

Personnel No. Qualifications Functions

 Must possess at least

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 Vocational Diploma/ Short  Responsible for the
Course production of tea
 Having at least 1-year  Make the list of needed
Production 2 experience in handling a supplies replenishments.
restaurant business is an
Workers
advantage
 From 20-30 years of age

 At least High School  Receives payments and

graduate issues receipts
 Required skill(s): Basic  Prepare daily sales record
Microsoft Office
Cashier 1
Applications. e.g. MS Excel
 Knowledgeable in
accounting money.
Dishwasher 1  At least High School  Washing plates, utensils,
Graduate and others
 From 18 to 30 years of age  Throws the daily garbage
of the shop

 High School Graduate  Assessing customers to

 18-30 years old their seats upon arrival
 Enthusiastic and willing to  Takes the orders of the
work customers
Waiters 2
 Serves the orders of the
customers
 Collecting payments form
the customers and
presenting the receipt.
 Cleaning the shop first
thing in the morning
 They are all obliged to take
care of customer’s needs
and satisfaction

Table 2
Salaries and Wages per Month

Personnel No. Salary (per head) Total

Production Workers 2 4,000.00 8,000.00
Cashier 1 3,800.00 3,800.00

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 Dishwasher 1 3,500.00 3,500.00
Waiters 2 3,500.00 7,000.00
Total 6 P22,300.00
Annual Salary P267,600.00

Table 1 shows the salaries of the personnel monthly. And by getting the total
annual salary, the monthly salary is multiplied by 12months.

D. Type of Organization

The proposed business will be registered as a limited partnership. There will be four (4)
partners who will own and invest in the said business. Each partner will contribute equal
amount of capital and will also share profits equally. Thus, they will have an equal status in
the business’ operation and all partners will be responsible for every decision-making.

Figure 3

ORGANIZATIONAL CHART

Managers/
Managers/
General Partners
General Partners

Production
Production
Workers
Workers

Cashier Dishwasher Waiters

Cashier Dishwasher Waiters

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