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CHAPTER 3

Organizational & Management Aspect

In this chapter, it presents the organization and management aspect of the

business which includes the legal form of the business, organization structure,

qualifications of officers, Office Equipment and Gantt chart of activities.

Legal Form of Business

Eagle Eco-Bike will be classified as a sole proprietorship form of business. An

individual proprietor owns and manages the business and is responsible for all

business transactions. The owner is also personally responsible for all debts and

liabilities incurred by the business. A sole proprietor can own the business for any

duration of time and sell it when he or she sees fit. As owner, a sole proprietor can

even pass a business down to his or her heirs.

Organizational Structure

Sole Proprietor

Cashier

Technical
Crew

Figure 4. Organizational Chart


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Organizational Structure

As shown in Figure 2 the sole proprietor is the owner and the one who leads

the business. The sole proprietor is indeed dedicated to provide a service which will

not only care for profit, but also committed to strengthen the social responsibility of the

business. Needless to say, the proprietor is dedicated to improve the quality of living

of the Davaoeos. Prior to this, the proprietor is an environmentalist, and health

advocate. The proprietor also is in charge of the decision making of financial

statement. The technical crew who prepare the bikes decided by the customer The

cashier who collect the payments of every customer and also disburses money.

Qualifications of Officers

Table 10. Qualification of Officers


Position Qualification Responsibility

Cashier At least college level Responsible for


getting the order of the
Female customer

Has comprehensive Counts money in cash


knowledge in at the beginning of
monetary transactions shift to ensure that
amounts are correct
Should be trustworthy
and Honest
Technical Crew At least college level Prepares the order of
the customer
Male
Ensure that the area is
With working clean,
experience in any
service business Ensure that the bike
well-maintained
Can do multi-tasking
In-charge of the
Can handle under maintenance of the
pressure equipment

Knows about bike


technicalities
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The table is all about the qualification and responsibility of each employee that

will be needed in order to maintain the quality of service that the business will offer.

Table 11. Salaries and Wages


No. of Employee
Employee 6am-2pm 2pm-10pm Monthly Gross Pay
Regular
Cashier 1 1 P 16,000.00 P 192,000.00
Contractual
Technical Crew 1 1 14,000.00 168,000.00
TOTAL P 30,000.00 P 360,000.00

The table is all about the salaries and wages of each employee for a month

and a year. Each month, the business will have a salaries and wages of Php30,000.00

and Php360,000.00 for a year.

Office Equipment

Aside from man power, business will never be complete without its equipment

that will be used by the employee to ensure accountability and make sure the work is

at its highest quality. It is also essential to plan carefully in buying equipment to be

used. We should be wise and buy only those needed and vital for the business. This

will also help us to minimize cost at the same time.

Table 12. Office Equipment


Equipment Quantity Estimated Amount Annual Deprecation
Useful Life
POS Hardware 1 8 P 12,950.00 P 1,079.17
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The POS Hardware is the only equipment needed in the business. The

company used the straight-line method in computing for the depreciation expense for

the year. The depreciation computer as follows is Php1,079.17 per year.

Gantt Chart of Activities

The Gantt chart presents the monthly activity schedule of the proposed

business.

Table 13. Gantt Chart of Activities


Activity Month 1 Month 2 Month 3 Month 4 Month 5
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Preparation
and conduct of
Feasibility
Study
Furnishing and
negotiation of
the space

Securing of
business
permits and
licenses

Purchased of
equipment and
supplies.

Hiring of
Employees
Business
Commence

The project schedule shows the time allotted for the pre operating activities that

needs to be undertaken before the business should commence operations. As


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presented above, the conduct of feasibility study will consume two months. Furnishing

the space and necessary negotiations as well as securing permits and license to

operate should be done by the month of December. On January purchasing of fixed

equipment and supplies shall take place and the proprietor will be hiring personnel

that will undergo proper training and orientation. Then on February will be the

commencement of the Eagle Eco-Bikes.