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This study is purposively made to test the feasibility of the product which the team
plans to introduce in the market under the brand name MUSA x Co. The team conducted
a survey containing various questions pertaining to the product. Moreover, the survey
was purposely done to gather the demographic data of the possible target market of the
product. The team gathered 100 respondents wherein 65% were conducted through
offline/personal survey and 35% from online survey. Google forms were used for online
surveys which were disseminated through Facebook. The online respondents were from
the different parts of the country. On the other hand, personal surveys were conducted in
dates, October 14 and 15, 2015 through a two-page questionnaire at MSU- IIT and
different Fast-food chains in Barangay Tibanga. The respondents were made up mostly
of college and high school students as well as young and adult professionals.

The following are the questions contained in the survey forms with the yielded
results and interpretation:

1. Fashion accessories such as eye wear knitted with abaca fiber, cellphone case
and tote bags made of abaca fiber as an accent material. How do you perceive
these products if these will be present in the market?

Table 1: Respondents perception of the product mentioned is present in the


Its unique and something that will stand-out. 55 55%

Its not something new 15 15%

Its fairly good. 25 25%

Its not interesting. 5 5%

Total 100 100

Fifty Five percent (55%) of respondents is telling that the fashion accessories
knitted with abaca fiber are unique and something that will stand out. While twenty five
percent (25%) perceives it as fairly good. Following with fifteen percent (15%),
perceives it as something new. Lastly, five percent (5%) responded that its not

The table therefore implies that majority of the respondents agreed on the
statement that the product idea is unique and something that will stand-out.

2. What are your color preferences for these fashion accessories?

Table 2: Respondents color preferences


Neutral colors (e.g. white, black, gray, nude) 56 56%

Earth Colors( e.g. green, brown,) 12 12%

Warm Colors (e.g. red, orange, yellow) 4 4%

Cool Colors (e.g. blue & purple) 10 10%

Pastel Colors (e.g. pale yellow, pale blue and 16 16%

rose pink)

Others, please specify:___ 2 2%

Total 100 100%

The table shows that fifty six percent (56%) of respondents prefer neutral colors for
the fashion items. Following with sixteen percent (16%) are pastel colors, Earth colors
with twelve percent (12%) and warm colors with four percent (4%). On the other hand,
two percent (2%) of the respondents specified the colors that they prefer for the items.

The results indicates that majority of the respondents prefers neutral colors. (E.g.
white, black, gray, nude) garnering the highest percentage.

3. As to what extent you have known abaca fiber?

Table 3: Respondents awareness of abaca fiber.


I have encountered products 63%

made of abaca

I have known its features 27 27%

No, I dont know about it 10 10%


Total 100 100%

In terms of the extent how the respondents know the abaca fiber, sixty three (63%)
of respondents says that they have encountered products made with abaca. Twenty
seven percent (27%) have known the features of abaca fiber while ten percent (10%)
of respondents have no idea of the fiber.

The results of this question shows majority of the respondents have encountered
products made of abaca garnering the highest percentage.

4. How much are you willing to spend for these fashion accessories made of
abaca fiber provided that these have very good quality?

Table 4: Respondents willingness to spend for fashion accessories


1,000-2,000 PHP 87 87%

2,000-3,000PHP 11 11%

3,000 and above PHP 2 2%

Total 100 100%

The table displays that majority of the respondents are willing to spend 1,000-
2,000 Php for the product idea with eighty seven (87%) respondents. Eleven percent
(11%) of respondents are willing to spend 2000 3000 Php for the product idea while
2% of the respondents are willing to spend 3,000 Php and above for the product idea.

Therefore, garnering the highest percentage, respondents are willing to spend

1,000-2,000Php for the product idea.

5. Which mode of shopping is more convenient for you?

Table 5: Respondents shopping mode


Store Shopping 87 87%

Online Shopping 13 13%

Total 100 100%

From one hundred respondents, eighty seven percent (87%) are saying that
Store shopping is more convenient than online shopping garnering thirteen percent
(13%) of the respondents.

The results as presented in the table infers that majority of the respondents
prefer store shopping than online shopping. The team should either set up a physical
store for the products or partner with established retailers in the city.

6. How often do you go for shopping?

For young professionals, how often?

Table 6.1 How often young professionals go for shopping.


During payday 8 50%

Weekends 4 25%

Once a month 3 19%

Others, please specify 1 6%

Total 16 100%

Sixteen (16) out of one hundred (100) respondents are made up of young
professionals. Fifty percent (50%) of these respondents shop during payday. Twenty-
five percent (25%) during weekends and nineteen percent (19%) of these shop once a
month. On the other hand, six percent (6%) of the young professionals respondents
specified their timeline for shopping.

The results, as shown in the table above, concludes that majority of the
respondents go shopping twice per month.

For students, how often?

Table 6.2 How often students go for shopping.


Twice per month 57 68%

Four times per month 9 11%

Five times per month 1 1%

Others (specified) 17 20%

Total 84 100%

Out of the one hundred (100) respondents, eighty four (84) of these are
made up of students. From these respondents, sixty percent (68%) shop twice per
month; eleven percent (11%) shop four times per month and one percent (1%)
shop five times per month. Furthermore, twenty percent (20%) of the student
respondents have already specified their timeline of shopping.

The table infers that majority of the student respondents go shopping twice
per month garnering the highest percentage over other choices

7. For online shoppers, which mode of payment do you prefer?

Table 7. Online shoppers mode of payment.


Pay pal 1 8%

Cash on delivery 9 69%

Credit Card 3 23%

Total 13 100%

The table shows that thirteen (13) of the respondents are online shoppers.
Sixty-nine percent (69%) prefers Cash-on-delivery payment basis. Followed by
Credit card payment with twenty three (23%) and payments through Paypal with
eight percent (8%).

The results show that majority of the respondents made up of online

shoppers prefer cash-on-delivery basis for the mode of payment.

8. What accessory you wish to be accented with abaca fiber? (fill as many
as you want)

Table 8. Respondents preferred abaca accented accessories.


Bags 50 39%

Jewelry 15 12%

Headwear 11 8%

Belts 17 13%

Eyewear 2 2%

Watches 33 26%

Others 0

Total 128 100%

Most respondents, garnering thirty nine percent (39%), prefers bags to be

accented with abaca fiber; twenty six percent (26%) for watches; thirteen percent
(13%) prefers belts; twelve percent (12%) for jewelries; eight percent (8%) for
headwear accessories; and two percent (2%) for eyewear.

The results yielded that majority of the respondents wants bags to be

accented with abaca fiber.

9. How are you driven to buy products that could also help a community in

Table 9. Respondents desire to help the community through purchasing the



I will buy the product

because I want to help 45%
the community it adapted
even I dont like it.

I will buy the product 55%

because I like it solely.

Total 100 100%

In terms of how the respondents are driven to buy products that will in turn
help the community, Forty five percent (45%) of the respondents have said that
they will buy the product because they wanted to help the community it adopted.
On the other hand, fifty five percent (55%) of the respondents have said that they
will buy the product because they solely like it.

The table indicates that there are less respondents that are socially-driven
when it comes to products that are associated with social entrepreneurship. More
respondents are socially driven with products that are not associated with social
entrepreneurship. The team, basing from the results, should put more effort on
informing the consumers of the social impacts of social entrepreneurship.

10. Where do you prefer to purchase the products?

Table 10. Respondents preferred location to purchase products.


Own Physical store 35 35%

Online shop (FB, ZALORA 13%

Display in existing retailers
(shelves and hangers, spruce. 52 52%
Total 100 100%

Most respondents prefer to make to display the products on existing
retailing stores of Iligan City garnering fifty two (52%). While thirty five percent
(35%) prefer for tat the team should have a sole physical store and thirteen percent
(13%) prefers to purchase the products through online shops.

The table therefore implies that majority of the respondents wants the
products to be displayed in existing retailers (shelves and hangers or spruce etc.)
followed by own physical store and online shops.


The team must align its operational activities in line with the stated
objectives below:

1. To establish a social entrepreneurship enterprise by adopting a Brgy. Pala-o

community in Iligan City through the Iligan Citys Womens Association.

2. To help these working individuals under the adopted community by providing

them additional income in exchange of outsourced labor and raw materials.

3. To produce keenly fabricated, high-end accessories such as bags to be

introduced to a certain market niche.

4. To establish trend and a prominent brand of bags through unique marketing

campaigns penetrating the locality of Iligan City.

5. To garner increased sales every month by applying strategic and cost-efficient

marketing activities.

6. To draw consignation with established physical stores which offers also

upscale products in Iligan City such as Shelves & Hangers, Spruce, and etc.


Musa x CO. will be creating hand and sling bags accented with weaved
abaca fiber making the products eco original. Musa x Co. Bags are perfect day
bag due to its size and durability. The bag moreover, keeps the contents dry even
in a rainstorm because of its PUL (Polyurethane Laminated Fabric) waterproof

lining. The users dont have to worry about abacas roughness because the
material has undergone gloss polishing process that furnishes the bags exterior.
Interior zippers were used on the internal pockets which will serve as one of the
wonderful features of the bag. The bags will also never get out of style because of
its premium handpicked leather straps that could be wiped clean with just a cloth.

Figure 1: Actual Picture of the Product

MUSA X Co. has identified the primary and secondary market and description
which is thoroughly elaborated as follows:

C.1 Primary Target Market

MUSA X Co.s primary target market includes Teenagers and Young

Professionals which could be an online or a direct customer. The team purposely
created the products for these market groups and finds them as most likely to suit

MUSA X Co s products. The primary target markets description is presented
through market segmentation in the following:

C.1.1 Demographic Segmentation

The market includes female or women from income classes A, B and C.

These classes are composed of upper level and average income earners. The
market is made up of Teenagers with age ranging from 16 to 19 years old. This
market group could mostly be made up of college students. Furthermore, adults
with age ranging from 20 to 37 years old are also part of the primary target market
of MUSA X Co. This market group would primarily be composed of Young

C.1.2 Geographic Segmentation

The team will be distributing and making MUSA X COs products be

available for sale in a national scale through online platforms. On the other hand,
partnered retailers/distributors and online platforms for the local scale selling in
Iligan City. Thus, the team is expecting online and direct customers. The market
groups therefore, are geographically located at all parts of the country, the
Philippines. Most likely, these market groups will be from urban areas of the
country; Cities and Metro cities.

C.1.3 Psychographic Segmentation

MUSA X Co will be focusing on market groups that have a trendy lifestyle

and whose jobs are mostly on the academe, office or taking part in corporate
functions or those with white collar jobs. These market groups could either have
an above average or superior lifestyle. Most likely, this type of market groups are
Fashion enthusiasts , made up of online buyers and active users of social media
sites as well as followers of fashion moguls.

C.1.4 Behavioral Segmentation

This segment is made up of individuals who have heavy usage on bags and
considers it as a necessity. The market this segment are often looking for bags

that provides them unique benefits than the usual bags and cater the need in terms
of usage of bags. Most likely, individuals under the segment has a capacity to
spend in purchasing bags in a regular fixed time basis (perhaps purchasing twice
a month). Lastly, this market group could be loyal collectors of certain brand of
bags and willing to venture and collect other brands. Furthermore, these
individuals or market groups are very much sensitive to bag taste and bag price to
the point that the products price should deliver them the desired benefit.

C.2 Secondary Target Market

MUSA x Co considers the late adapters of fashion trends which is made up

of adult professionals and retired professionals as the secondary market of the
products. This market group ranges from the age bracket of 40 to 50 years old.
This group are inactive users of social media or those who dont engage in social
media. Moreover, these are the market who prefers the old fashion styles but at
some point adapt new fashion styles.


MUSA X Co. will be making its products available for sale in Barangay Poblacion,
Iligan city, Philippinse. Furthermore, the following distribution outlets/ partnered retailers
are chosen:

Shelves and Hangers


SPRUCE is located at 2F PYB residence building Zamora Cor. Lluch, Street,

Barangay Poblacion, Iligan City. While, Shelves and hangers is located at De Leon street
Barangay Poblacion Iligan City. Gaisano mall of Iligan City, on the other hand is located
at Roxas avenue, Barangay Villaverde of the city.

Below is the map showing the Location of the partnered retailers or distribution
outlets of MUSA x Co:

Figure 2: Vicinity map of the proposed business Market Area


Include an introductory paragraph identifying the industry that the proposed

business would enter. Provide sources or citing why this industry is promising. Use APA
style for citing.


The proponents directly targeted the demand data from the two retailer
stores the team planned to do consignment with. The demand figures are taken from the
number of daily visitors of the stores divided against the demand percentage.

Table 1: Proposed Business Demand Analysis

Market Segment Demand
Market Area Demand
Population Percentage
1. Spruce, Poblacion 502 7.79% 40
2. Shelves & Hangers, 502 19.92% 100
TOTAL 502 27.89% 140


The proponents identified only two existing competitors in the nearby local
area. Their monthly sales are indicated below. Based on inquiry, Jovic has 9 units of
estimated sales every month and Streetshop could sell 15 units per month.

Table 2: Proposed Business Supply Analysis

Monthly Sales Yearly Sales
Volume Volume
1. JOVIC 17,550 210,600
2. STREETSHOP 16,875 202,500
TOTAL 34,425 413,100


Table 3: Proposed Business Market Potential

294,504 100% 34,425 11.69%
260,079 88.31% TOTAL

Out from the estimated demand and supply, a derived market potential posed a
high level of attractiveness with a percentage of 88.31%.


Musa X Co.s competitive landscape is determined through the identified

direct competitors within the market area.

Product Brand Distributio
Product Customer Promotion
Design Equity n Network
COMPETITORS Quality Service

Rating Rating Rating Rating Rating Rating

1. JOVIC 1 1 4 2 3 4
2. Street Shop 2 3 1 3 3 3
Rating: 1 - Outstanding; 2- Very satisfactory; 3 - Good; 4 - Fair; 5 Poor

Jovic is a local retail store located in Iligan City who distributes designer bags. The
store rated low in customer service because the customers cannot freely get inside the
store because the door is locked and a staff only opens the door if a customer is outside.
They only employed one staff which also serves as the saleslady. The staff/saleslady
doesnt entertain their customers well, so does the store owner who stands by the cashier.

Street Shop is also a local retail store located in Iligan City who distributes local
bags. Unlike Jovic, Street Shops staff is well-mannered they entertained their customers
well assisting what they need and answering the questions of the customers politely. They
rated low in design because their products is common and can be seen from other stores.


Musa x Co. elicit an emotional appreciation to the hard work of our community
thats why we are creating high quality handbags for the user that are original, useful and

G.1 Features

The handbags are made with hand-weaved abaca fiber and

accented with premium leather. It has over the shoulder genuine-leather
strap and sling braided with abaca rope, it also has exterior and interior
pockets with premium hand-picked excella metal zippers with fully
polished element. The handles has a golden rust-proof piercings that can
carry heavy contents.

G.2 Attributes

The Musa x Co. bag is made with a classic design with neutral
colored exterior such as black, white and nude.The handbag has a
dimension of 13 x 6 x 11-inch. It also has a 41-inch long sling. The abaca
fiber used in the handbags undergone gloss processing for a shine-effect
finish. It also has an 18-inch single strap with 10-inch depth with braided
abaca ropes which also undergone gloss processing. The interior is made
waterproof with Polyurethane Laminated (PUL) fabric.The interior zipper is
7-inch long with a depth of 6 inches. The bags are made to last and
withstand the test of time.

G.3 Benefits

Handbags accented with abaca fiber make it possible for the user to
project a personalized image. Users can wear it with different day outfits
giving them less difficulty in styling. The bags could also perfectly serve as
gifts for those buyers who want to give something valuable to their loved
ones. handbags are distinguishable relatively by their large space which
can carry large valued things. The Abaca accented handbag is a high end

market version of handbags accented with hand weaved abaca which is
durable and strong enough for use in various occasions.

G.4 Post-purchase Services

Musa X Co will give a one week warranty upon purchase of the bag
for any manufacturing defects. The cost of repairing is shouldered by the
company within the warranty time frame. Online Buyers may express their
concerns through sending a personal message in the official Facebook
page of the company. The company, in return, will provide specific
instructions that should be undertaken for the process of returning the
purchase and availing the warranty. Purchase returns and concerns for walk
in customers can be done through going directly to the partnered retailers
and distributors. The buyer must present a copy of the proof of purchase to
avail the mentioned service. No refund, just exchange of purchase is a
rule in purchase transactions between the buyer and the company.


MUSA x CO. bags are warranted to be free of defects in materials and workmanship for
a period of one year from date of original retail (online or offline) purchase.

MUSA x CO. will repair or replace the product, or part thereof, found upon inspection to
be defective, provided the defective part or product is returned. Freight prepaid, with proof
of purchase (Warranty Card stamped by dealer / Invoice or Receipt / Order Number). This
warranty applies to the original purchaser only and is non-transferrable.

PLEASE NOTE: This warranty is not valid for:

1. Damage resulting from accidents, mishandling, negligence, unauthorized repair,
tampering, loss of components or accessories, normal wear and tear, exposure
to extreme heat and temperature, solvents and acids.
2. Powder coating, gold plating, wood finish on locks, frames, channels and all
other metallic surfaces and,
3. Damage to the leather trimmings.

We undertake to repair/replace the defective piece within a reasonable period of

time and our decisions as to the nature of the defects and applicability of this
warranty is final.

Our liability for damages is restricted to repair/replacement of the

defective/damaged piece or refund of cost paid for the said piece only. Any
dispute arising out of purchases, use or warranty is subject to exclusive
jurisdiction of court. This warranty excludes every condition / warranty liability not
expressly set out herein.

G.5 Packaging and Labeling

MUSA x Co. Packaging Facade

MUSA x Co. Side View

Figure 3: Proposed products packaging and labeling


One of the key factors in the success of MUSA x Co. will be its distribution. The
team plans to use the following major and minor distribution channels:

Major Distribution:
Partnered Retailing Outlets
-Shelves and Hangers

Secondary Distribution:
Online Stores
- Social Media Platform
- Zalora

Consumers buy bags and other accessories from a variety of retail outlets. Tapping
local and national retailers will be one of the companys strategies in distributing the
products. In a recent survey conducted by the team 87% of the respondents opt for store
shopping and 13% selected online stores as a mode of shopping.

The distribution channel that has received the most attention recently is the online
stores with the usage of Internet. Even though the survey yielded a small portion of
consumers who opted to this type of channel, this distribution channel is considered to
have the highest potential for growth and expansion. Consumers like the convenience of
being able to shop from anywhere and at any time they wish.

Figure4: Proposed business main Channel of Distribution


Below are the enumerated promotional and branding strategies that will be
employed for the proposed business, classifying the use of conventional or above the line
tactics or the non-conventional or the below the line marketing programs.

I.1 Conventional Strategies

Below are the identified conventional strategies that the team will be

Table 5.1: Conventional Promotional Strategies


1. Banner Ads on Social HEADLINE: Online users; national
Media Your Bag your Status reach
Font type: F:Ft serif (January 2015); changes
Font Color: Black once a month
Plain white background
with model posing with
the product.

will be included

Additional Details:
FB logo and Instagram
Logo with Musa x Cos

2. Print poster Ads Creative posters that are Reaching a specific local
to be posted in local market niche: 1,000
cafs in Iligan City with people
the following (January 2015); changes
specification: once a month

No headline Area here posters will be

Model holding and SULEN
posing for the product in INFINITEA
white background TEATIME
included Sanitarium College
St Michaels
St peters

Sample creatives of all the promotional strategies are presented as follows:

Proposed Two concepts of Poster ads For MUSA x CO.

Proposed Banner ads for the social Media Pages/accounts

I.2 Non-Conventional Strategies

Below are the identified non-conventional strategies that the team will be

Table 5.2: Non-Conventional Promotional Strategies

1. Promotional Videos A campaign video -1000Views
featuring Musa X Co. -1000 Shares on
making it viral online. Facebook, Twitter
Time length: 50 (Twice for 5 mos.
seconds Jan& Mar 2016)

Studio scenes; brand
ambassador pictorial
with the product.
2. Fashion Mob MUSA x Co. will visit -150 viewers
colleges and - twice in 5 months
universities in the (February 2015 and
locality to conduct a April 2015)
fashion show mob The
concept is that Models
with the bags will be
walking like in a runway
unexpectedly in a
certain area of the

school. The objective of
this strategy is to create
a marketing buzz to
gain brand recognition.

Sample creative of all the non-conventional promotional strategies are as follows:

Campaign Video Ad for MUSA x CO.


On account with the upscale bags for high-end individuals, Musa X Co. will impose
competition based pricing. Thus, primarily employing a competition-based strategy of
pricing its products (bags). Identified competitors are enumerated below:

Table 6: Comparison of Competitors Selling Price


1,950 1,125 1,537.50

The prices stated above are the selling price of their competitors in terms of bag
which is their main product. By competitive based pricing, the team will set the price of
their bag based on the average selling price of their competitors.


The teams sales forecast throughout the 5-month operation of MUSA x Co

presented as follows:

Table 7: Monthly Sales Forecast

Potential Market Size 50 55 60 70 75
% to satisfy 52% 52% 52% 52% 52%
Projected Sales Volume 26 28 31 36 39
Selling Price per unit 1,200 1,200 1,200 1,200 1,200
Sales Forecast 31,200 33,600 37,200 43,200 46,800


For sustainable marketing activities, below is the estimated percentage of

marketing budget allotment over total sales in each month from January to May 2016.

Table 8: Monthly Marketing Budget

Producing Print Ads 1,570 1,570 1,570 1,570 1,570
Producing Promotional 250 250 250 250 250
TOTAL 1,820 1,820 1,820 1,820 1,820
% Over SALES 4.8% 4.8% 4.8% 4.8% 4.8%



The main production objective of Musa x Co. is to produce high quality goods and post-
purchase services. The objectives can be achieved by:

1. Optimal utilization and Maximizing the use of the 7ms of production such
as men, machines, materials, manpower, method, marketing and
2. Avoid wastage of materials
3. Ensuring to create high quality goods at a minimal cost
4. To demonstrate time efficiency in the whole production process


Musa x Co will be creating tote bags made out abaca. The exterior is mainly
made of leather fabric accented with weaved abaca. It will be designed with
contrasting colors such as black white and nude. It doesnt have exterior zipper but
it has an outer hook and lock made out of metals. The bags interior is made out
of polyurethane laminated fabric that consists its waterproof feature. The bag has
12 inches interior pockets with premium handpicked zippers, enough to carry your
contents. The tote bags has a 26 inches leather straps, strong enough to carry its
contents on approximately 8-12 pounds.


As with any other manufacturing organization Musa X Co. follows certain stages
to ensure that its finish product ( bags ) will reach the customer. The supply chain ensures
the timely distribution of our bags to our target customers.

It starts with obtaining all the raw materials necessary for production which
includes abaca fiber ,leather, textile, hardware, gloss/ polishing material. The materials
are then transferred to the manufacturing station via public transportation. After gathering
all the raw materials the manufacturing or production process starts followed by quality
control, this process is used to maintain the standard of the manufactured . Subsequently,
when the product is finished distribution to the selected retailers begin. The selected
retailers then serve as the direct seller of the product.


Figure: Supply Chain Flow of the proposed product

At each stage of the chain there will be additional services that help producers to
operate effectively. These include transportation and capital.


Musa x Co. bags are made using the finest abaca fiber, threads and high-quality
fabrics. After collecting all the needed raw materials several steps are followed in order
to create the desired handbag.

The first step is weaving the abaca fiber, 0.42 meters are weaved each day. The
next step is cutting the weaved abaca to its desired pattern this step take 10 minutes.
Dyeing the abaca then follows, this step takes 2 hours. After dyeing, drying the abaca
for 45 minutes is done. The next step is polishing the abaca using a gloss material this
step takes 30 minutes and when this step is over the abaca is now ready for sewing.

The leather follows a short process, after cutting the leather to its desired pattern
it is now ready for sewing. All the other materials textile and hardware are directly used
in sewing. It takes one (1) day to sew a handbag per sewer.

Lead Time: 2 days, 4 hours and 5 minutes


Raw Materials Inspection Transport

Operation Finished Goods

Figure: Production Process

Figure: Process Flow Charts


Musa x Co.s headquarters will be at Barangay. Palao, Iligan City because

the raw materials are sourced there and processed to make outputs. The abaca
are weaved outside the vicinity of the sewing process. All inputs are cut using a
pattern inside the main cutting process room.

E.1 Location

Lanao Chung Hua Street, Barangay Palao Iligan City (beside Barangay Hall
of Pala-o).

Figure: Vicinity map of the factory

E. 2 Floor Plan

Figure: Floor Plan (Birds eye View)


MUSA X Co are creating high end hand bags accented with Abaca fiber. The
following table shows the machineries and equipment that is necessary in the process of
creating the bags of MUSA x co:

Table: List of Machineries and Equipment of the proposed business

1.Sewing Machine Can produce
(for Bags) approximately
Barangay Hall
800 bags Contract
of Barangay 11, 000.00
given that it Agreement
has 3 years of
2.Weaving Machine Can produce
600 meters of
Barangay Hall
weaved abaca Contract
of Barangay 3,000.00
fiber given that Agreement
it has 5 years
3. Cutting tools (for
fabrics, fiber and
Lifespan of 1 By Cash
leather); scissors, Unitop 850.00
year payment
pliers and self-
healing matts.
Equipment (broom Usage for 1 By Cash
Unitop 580.00
and etc. oil grease year payment
for machine)

Sewing machines for bags as well as the weaving machines are to be acquired by
contract agreement. The team will be having a contract agreement with the barangay hall
of Pala-o for these machines to be used and will receive a title of ownership for a certain
period of time. The equipment included at the process will be acquired by the team
through cash payment and will receive full ownership in these items.


MUSA x Co. will not be held responsible for the maintenance and repair costs in
the machines used in the production process. The Labor for creating and machines used
are outsourced. Hence, the maintenance and repairs costs is the responsibility of the


Musa X Co.s Factory will be located at Chung Hua Road, Barangay Pala-o (beside
Barangay Pala-os Barangay hall). Supplies of abaca fiber will be coming from Barangay
Hall of Barangay Pala-o. Therefore, the location of the factory will reduce the
shipping/freight cost of raw materials.

Figure: Location Of the proposed business Factory

Musa X Co.s will have three stages of creating the products. The first stage will
be procuring the direct Materials and raw materials from the chosen suppliers. Second
stage, will be the processing. This stage involves the creation of the bag, storing the
finished goods, quality check/assurance and packaging. The last stage will be the delivery
stage. A certain finished goods inventory will be allocated for the partnered retailers as
well as for online stores and orders. Any waste from the process of creating the bag will
be subjected to recycling processes.

Figure: Process flowchart of the procurement and inventory control system


To ensure the minimization of the environmental impact of our waste, Musa X Co.
will follow the Republic Act 9003 or the Ecological Solid Waste Management Act of 2000.
This Act will provide protection of the health of the citizens surrounding the business
vicinity that includes the environment and other resources.

Musa X Co. will implement rules that will aid in the reduction of solid waste. We
will execute proper waste disposal, which includes 3 Rs - Reduce, Reuse, Recycle. The
recycled waste will be used in our product packaging. We will also ensure proper
collection, segregation, transport and storage of our waste. The company will adopt the
best practice in ecological waste management. Increase our use of recycled or renewable
content, as well as collection, recovery and recycling of our packages are some of the
key focus areas in order to reduce our environmental impact.


There are four weavers in the organization with 2.5 meters capacity of weaved
abaca per week except for the new hired personnel with only 2 meters per week. There
would be an average of 9.5 meters per month. The only sewer could produce an
estimated 12 units of bags per month.

Table: Monthly Production Capacity
Weaver 1 2.5 meters per week 10 meters per month
Weaver 2 2.5 meters per week 10 meters per month
Weaver 3 2.5 meters per week 10 meters per month
Weaver 4 2 meters per week 8 meters per month
Sewer 3 bags per week 12 bags per month


The general raw and/or direct materials needed to produce a unit of MUSA x CO.
bag are weaved abaca, braided abaca, abaca rope, PUL (Polyurethane Laminated
fabric), TAFETA (inner lining), gloss polishing material, YKK Zippers, Metal Plate, Leather
fabric, Astra/Rugged Thread, Magnets, Hook and Eye, Burlap Pouches, Foam, Armor All,
Black paint, Golden Paint, Harpe Paper and Dye. The quantitative details for each
material is provided within the table below

Table: Raw/Direct Materials Description.

Weaved Abaca
80/meter 1/3 meter 26.67 533.40
Braided Abaca 6.00/meter 3/2 meter 9.00 180.00
Abaca Rope 2.00/meter 2 meters 4.00 80.00
70.00/meter meter 35.00 700.00
TAFETA (inner
55.00/meter meter 27.50 550.00
59.00/bottle 1/3 bottle 19.67 393.40
YKK Zippers 231.00/set 1 set 231.00 4,620.00
150.00/engraved 1 engraved
Metal Plate 150.00 3,000.00
metal material
Leather Fabric 350.00/meter 0.67 meter 234.50 4,690.00
27.00/spool 0.10/spool 2.70 54.00
Magnets 40.00/pair 2 pairs 80.00 1,600.00
Hook and Eye 30.00/pair 2 pairs 60.00 1,200.00
53.00/meter meter 26.50 530.00
Foam 30.00/meter 1/8 meter 3.75 75.00
Armor All 250.00/bottle 1/12 bottle 20.83 416.60
Black Paint 130.00/liter 1/12 liter 10.83 216.60
Golden Paint 29.00/can can 14.5 290.00
Harpe Paper 60.00/meter 0.67 meter 40.20 804.00
Dye 5.00/pc 8 pcs. 40.00 800.00


To produce a unit of MUSA x CO. bag, the general direct labor requirements
needed are Weaving, Cutting, Dyeing & Gloss Processing, and Sewing.

Table: Direct Labor Description

& Gloss Processing 20/meter 6.67 133.40

Sewing 200 200 4,000.00


The general factory overhead requirements needed to produce a unit of MUSA x

CO. bag are Thinner, Cham Paint Brush, Manila Paper, Meter Stick, Cutter, Scissors,
Tailoring Chalk, Needle, and Package Printing. The quantitative details for each
requirement is provided within the table below.

Table: Factory Overhead Requirements

Thinner 39/bottle bottle 9.75 195.00
Cham Paint
22.00 1 22.00 440.00
Manila Paper 2.50 1 2.50 50.00
Meter Stick 25.00 1 25.00 500.00
Cutter 12.00 2 24.00 480.00
Scissors 30.00 1 30.00 600.00
Tailoring Chalk 24.00 1 24.00 480.00
Needle 17.00 1 17.00 340.00
105.00 1 105.00 2,100.00
TOTAL 259.25 5,185.00


Table: Product Cost

Raw/Direct Materials 1, 036.65 20, 733.00
Direct Labor 206.67 4, 133.40
Factory Overhead 259.25 5, 185.00
Total Product cost 1, 502.57 30, 051.00


A. Legal Form of Business

Musa X Co. is created by five highly - motivated individuals who aims to

provide product that will fit and satisfy the desires of its consumers. Thus, Musa

X Co. employs partnership as a legal form of business.

Partnership exists when two or more individuals join to carry on a trade or

business. Each individual contributes money, property, labor or skill, and expects

to share in the profits and losses of the business. In this case, the profits and

losses of the company is divided according to the investments/ contributions of

each individual.

Considering that the legal form of business is Partnership the group will

create a partnership agreement that will make certain the rights and

responsibilities of each partner, establish the shares of profits or losses each

partner will take, what will happen to the business if a partner leaves and other

important guidelines.

A major benefit of partnership is that more partners means more financial

investments as well as spreading of business risks. Each partner have different

experiences and skills, which expands opportunities beyond what an individual

could do as a sole proprietor. Since, the partners are friends they have a personal

bond together, regardless decisions are to be made according to what is most

suitable under certain circumstances. The partners may have disagreements on

decisions and activities that can impede success and create frustration but there

are certain procedures to follow in order to settle to an agreement.


This PARTNERSHIP AGREEMENT is made on December 16, 2015 by Alice

Baricuatro, John Carlo Garcia, Baby Joy Lagat, Cairoden Radiamoda, Ivy Jill


The parties hereby form a partnership under the name of MUSA x Co. to conduct a
business that would help a selected barangay community to create stylish and
innovative bags. The principal office of the business shall be in Barangay Palao, Iligan


The partnership shall begin on January 23, 2016, and shall continue until terminated as
herein provided.


The capital of the partnership shall be contributed in cash by the partners as follows: A
separate capital account shall be maintained for each partner. Neither partner shall
withdraw any part of his capital account. Upon the demand of either partner, the capital
accounts of the partners shall be maintained at all times in the proportions in which the
partners share in the profits and losses of the partnership.


The net profits of the partnership shall be divided equally between the partners and the
net losses shall be borne equally by them. A separate income account shall be
maintained for each partner. Partnership profits and losses shall be charged or credited
to the separate income account of each partner. If a partner has no credit balance in his
income account, losses shall be charged to his capital account.


A partner shall receive salary for the services rendered to the partnership. Each partner
is not allowed to withdraw the credit balance in his income account.


No interest shall be paid on the initial contributions to the capital of the partnership or on
any subsequent contributions of capital.


The partners shall have equal rights in the management of the partnership business,
and each partner shall devote his entire time to the conduct of the business. Without the
consent of the other partner neither partner shall on behalf of the partnership borrow or
lend money, or make, deliver, or accept any commercial paper, or execute any
mortgage, security agreement, bond, or lease, or purchase or contract to purchase, or
sell or contract to sell any property for or of the partnership other than the type of
property bought and sold in the regular course of its business.

BANKING. All funds of the partnership shall be deposited in its name in such checking
account or accounts as shall be designated by the partners. All withdrawals are to be
made upon checks signed by either partner.


The partnership books shall be maintained at the principal office of the partnership, and
each partner shall at all times have access thereto. The books shall be kept on a fiscal
year basis, commencing February and ending May, and shall be closed and balanced at
the end of each fiscal year. An audit shall be made as of the closing date.


The partnership may be dissolved at any time by agreement of the partners, in which
event the partners shall proceed with reasonable promptness to liquidate the business
of the partnership. The partnership name shall be sold with the other assets of the
business. The assets of the partnership business shall be used and distributed in the
following order: (a) to pay or provide for the payment of all partnership liabilities and
liquidating expenses and obligations; (b) to equalize the income accounts of the
partners; (c) to discharge the balance of the income accounts of the partners; (d) to
equalize the capital accounts of the partners; and (e) to discharge the balance of the
capital accounts of the partners.


Upon the death of either partner, the surviving partner shall have the right either to
purchase the interest of the decedent in the partnership or to terminate and liquidate the
partnership business. If the surviving partner elects to purchase the decedent's interest,
he shall serve notice in writing of such election, within three months after the death of
the decedent, upon the executor or administrator of the decedent, or, if at the time of
such election no legal representative has been appointed, upon any one of the known
legal heirs of the decedent at the last-known address of such heir. (a) If the surviving
partner elects to purchase the interest of the decedent in the partnership, the purchase
price shall be equal to the decedent's capital account as at the date of his death plus the
decedent's income account as at the end of the prior fiscal year, increased by his share
of partnership profits or decreased by his share of partnership losses for the period from
the beginning of the fiscal year in which his death occurred until the end of the calendar
month in which his death occurred, and decreased by withdrawals charged to his
income account during such period. No allowance shall be made for goodwill, trade
name, patents, or other intangible assets, except as those assets have been reflected
on the partnership books immediately prior to the decedent's death; but the survivor
shall nevertheless be entitled to use the trade name of the partnership. (b) Except as
herein otherwise stated, the procedure as to liquidation and distribution of the assets of
the partnership business shall be the same as stated in paragraph 10 with reference to
voluntary termination.


Any controversy or claim arising out of or relating to this Agreement, or the breach
hereof, shall be settled through mediation, but if a problem is not solved Arbitration is
then implemented.

Executed this January 20, 2016 in Iligan City, Mindanao, Philippines.

B. Organizational Structure

Figure 1: Organizational Chart of MUSA x Co.

Musa X Co. will follow a Functional Organization Structure where work units

are divided according to critical subheads of a business (Marketing, Production,

Operation, and Finance). These departments have designated individuals

assigned to lead their department to complete the task.

The Marketing department is in charge for promotions, revenue growth,

tracking trends and monitoring competition. The Production department is the

area in the company where inputs are turned into outputs. The Production Head

is responsible for making sure that raw materials are provided and made into

finished goods effectively. The Operations Department is responsible for the

management of supply chains, logistics which include the acquisition, distribution,

allocation and delivery of product or service. Finance department is responsible

for the management of cash flow and ensuring that there are enough funds

available to meet the day-to-day payments. The Finance Department is also

tasked to prepare and plan internal financial information and analyze the

companys current financial performance.

The Human Resource Management is in charge of recruiting staff by

preparing job descriptions and job advertisements, advising on pay and other

issues, including promotion and benefits; administer payroll and maintain staff

records. Human Resource department is also responsible in advising pay and

other issues, including promotion and benefits; administer payroll and maintain

staff records.

Musa X Co. will have two levels of management. Top level or the

administrative composed of the General Manager, assigned to develop strategic

plans, company policies and the decision on which direction the business will go.

The middle level is composed of the department heads, which would execute

organization plans, and provide guidance to the staffs (sewers, weavers).

C. Human Resource Planning

MUSA x Co. is a social enterprise that will be creating high end bags for

women, accented with weaved abaca fibers produced from the local city of Iligan

in partnership with the Womens Association of the City. The team has strategically

adopted Barangay Pala-o for the production of the bags.

The weaved abaca fibers as well as the bags will be created through the

talented hands of the members of Pala-o Abaca Weavers Association. Basically,

MUSA x Co. will outsource the labor of the production from the association. The

team will furthermore maximize the potential of the members by recreating their

craft into something that is competent in the high end arena.

Initially, the launching of MUSA x Co. bags will be having one (1) main head

which will be entitled as the General Manager who will be monitoring the entire

process and activities that the business will be undertaking. The business will have

four (4) different subheads; Production/Operations Head, Human Resource Head,

Marketing Head and Financial Head. The four subheads will have to supervise the

different activities of the business. The production of bags will have five (5) laborers

from the Pala-o Abaca Weavers Association. These laborers will be doing the

weaving and sewing process of the bags that will be supervised by the Production


Moreover, the Business will have the following Human Resource

Management Practices:

Hiring will be open to all Genders

There will be no rules against religion and religious practices

Racism is not exercised

Lower income earners are highly prioritized to be part of MUSA x


Training and development programs are given to all employees

Standard policies will be set in any Human Resource Activities.

MUSA x Co in the long run aims to give more job opportunities and make

use of the talents and skills of the people of Barangay Pala-o. Eventually, These

job opportunities will not just be opened to the members of the association of the

barangay but also to the people of the city who are very willing to expand their

potentials and be part of MUSA x Co.

D. Job Description and Job Specification

The Job Description of each Position is presented in the table as follows:


Providing day to day Must have strong

support in running the leadership skills, be
company to ensure self-motivating,
effective communication driven enthusiastic
among the members of and must be
the organization customer focused
Taking overall Will be required to
responsibilities for all demonstrate a strong
administrative functions financial and
to ensure efficient and business awareness
effective delivery of the and an exemplary
companys objectives understanding of
Managing/ maintaining marketing and
the company production
A. General Manager
headquarters space in Must have
Palao Iligan City. exceptional
Maintaining and updating communication and
all company organizational skills
administration and IT and can display
systems professionalism at all
Acting as the companys times
health and safety officer These role demands
Maintaining effective flexible and varying
relations with related working hours
organizations like the including evenings,
Palao Abaca Handicraft weekends and
Association holidays.

Manage and coordinate Business or
all marketing, advertising marketing-related
and promotional staff and degree or equivalent
activities professional
Conduct market research qualification
to determine market Experience in all
requirements for existing aspects of
and future products developing and
Analysis of customer managing marketing
research, current market strategies
B. Marketing Head conditions and competitor Must have technical
information marketing skills
Develop and implement Proven experience in
marketing plans and customer and market
projects for new and research
existing products Relevant product and
Expand and develop industry knowledge
marketing platforms and experience with
Manage the productivity relevant software
of the marketing plans applications.
and projects
Overseeing the Good project
production process, management skills
drawing up a production The ability to
schedule communicate clearly
ensuring that the with staff at all levels
production is cost Good presentation
C. Production and effective skills in math and IT
Operations Making sure that skills
Head products are produced on Good problem-
time and are of good solving skills
quality; An understanding of
Working out the human production processes
and material resources Knowledge of
needed manufacturing quality

Estimating costs and The ability to make
setting the quality effective decisions
standards under pressure
Monitoring the production The ability to work to
processes and adjusting deadlines a
schedules as needed willingness to work
Liaising among different flexibly an
departments, e.g. understanding of
suppliers, managers health and safety
Working with managers
to implement the
company's policies and
Ensuring that health and
safety guidelines are
Supervising and
motivating a team of
Reviewing worker

Inspect products to Knows how to

ensure that prepare and operate
specifications are met weaving equipment
and to determine if At least high school
equipment need graduate
adjustment. Completion of
Observe woven abaca to vocational training on
C.1 Weavers detect weaving defects. weaving
Operate equipment for Must also have some
test runs to verify experience in related
adjustments and to areas and be familiar
obtain product samples with abaca weaving
Thread abaca fiber Creative and able to
through guides and identify poor and
rollers of equipment for weave-ready abaca

weaving and other Hard working and
processing. self-confident
Inspect equipment to
determine whether
repairs are needed.
Notify supervisors for
equipment malfunctions.
Cut, sew, trim and stitch Must have taken
fabric, abaca fiber and vocational or short
other tailored products. course in tailoring.
Measure finished bags to Must have at least 1-
identify products that 3 years of experience
needs adjustments as a sewer or tailor.
Sew bags using sewing Knowledge in
machine or other sewing, both hand
stitching machines. and machine sewing.
Inspect finished product Knowledge and
and do finishing touches. ability on different
C.2 Sewers
Hand stitch edges or kinds of stitches and
linings. design.
Inspect sewing machine Knowledge in
to determine whether different kinds of
repairs are needed. bags.
Notify supervisors for Knowledge and
sewing machine ability to sew in
malfunctions. different kinds of
Ability to use sewing
Providing and interpreting Experience of
financial information; managing a small
monitoring and finance team
interpreting cash flows Experience of
D. Financial Head
and predicting future financial reporting
trends; Knowledge of finance
analyzing change and systems and
advising accordingly;

formulating strategic and procedures in a
long-term business plans; program
researching and reporting Proven ability to lead,
on factors influencing manage, motivate
business performance; and develop a team
analyzing competitors Project management
and market trends; skills
developing financial Knowledge and
management understanding of
mechanisms that institutional donor
minimize financial risk; requirements
conducting reviews and Excellent
evaluations for cost- organizational skills
reduction opportunities; with the ability to
managing a company's coordinate activities
financial accounting, Good literacy,
monitoring and reporting numeracy and IT
systems; skills
liaising with auditors to Ability and
ensure annual monitoring willingness to
is carried out; undertake routine
producing accurate administrative tasks
financial reports to
specific deadlines;
managing budgets;
arranging new sources of
finance for a company's
debt facilities;
supervising staff;
Keeping abreast of
changes in financial
regulations and
Provides information by Bachelors Degree in
E. Human answering Human Resources,
Resource Head communications; Business, or a
referring special related field required

communications to Experience of
appropriate person. reporting and
Obtains and orients monitoring to tight
temporary help by deadlines
forwarding requirements Excellent
and criteria to temporary communication skills
services; providing
information and
Maintains human
resources records by
maintaining applications,
rsums, and applicant
Verifies candidates
background by contacting
Enrolls new employees
by issuing forms and
applications; verifying
Helps employees by
explaining benefit
Avoids legal challenges
by complying with legal
Maintains manager and
employee confidence by
keeping human
resources information
Updates job knowledge
by participating in
educational opportunities;
reading technical

Accomplishes human
resources and
organization mission by
completing related results
as needed.

E. Human Resource Policies

E.1. Recruitment and Selection Program

The Human Resource Management of MUSA x Co. will have a

standard operating procedure in Recruitment and Selection program for all

the departments under the business. The Recruitment and Selection

process will be divided into phases. Each phase should comply with the

policies created by the management for the given phase. The following table

will present the phases of the process, process description and the policies

for each phase:


Department Mangers
Department heads/Managers has the only right to
has to identify the need for request for additional
additional Man Power or any job man power to the
vacancies in the department. Human Resource
1. Processing the man Department
power Requisition The department managers have
to send request for man power The HRM associates are
to the Human resource to receive the request for
department. man power or process
the recruitment for the
job vacancy.
The HRM associates have to Specific skills needed for
report to the department the job vacancy has to be
manager and create an ad for given by the requesting
2. Sourcing for
the job vacancy that will be Department manager.
Applicants approved by the manager.
The content of the ads as
The associates will disseminate well as the medium that
the approved ads through the will be used should be

chosen and approved medium approved by the Human
(online platform or print ads) resource manager.

The time duration (if any) for the

submission of application for the
job vacancy will also be set.
The Human resource Each applicant whether
associates have to collect the from the internal or
applicants Resumes and Bio- outside the business are
data for short-listing. required to submit a
3. External and Internal
resume and Bio Data.
Sourcing of
Applicants must be in
legal age and be literate
(knows how to read and

The HRM associates will have The Human Resource

to short list the applicants Manager and the
basing on the skill required for requesting department
the job. manager should receive
the information of the
Short-listed candidates must be short listed candidates
reported to the HRM manager and will set the interview
4. Short Listing of
and the requesting Department date.
Applicants Manager.

Date for the interview for the

short-listed applicants will be

The candidates are informed for

the interview date
5. Evaluation of short- The interview phase of the The interviewing panel
candidates will be conducted by should include the
listed Candidates
a panel of three (3); made up by requesting department
the Human resource manager, manager, human
requesting department resource manager and
manager, and a human an HR associate.
resource associate
An assigned person will
There will be structured be part of the
questions that will have points interviewing panel from
and will have a 70% weight on the requesting
the total percentage of the department in absence
interview results. of the manager as well
as with the Human
Other questions will come from resource manager.
the requesting department and
will have a 30% weight on the The requesting
total percentage of the interview department manager
results; this percentage is must decide whom to
determined by the Interviewer hire if the candidates
from the requesting department garnered equal amount
of percentage interview

The total percentage of interview
results id derived as follows: The chosen candidates
must submit the required
documents before
induction for the job

The short listed candidates who

have garnered the highest
percentage will be hired and
contacted to submit the
following requirements:

Health Card (indicating

that he or she is fit for work)
Police Clearance
Barangay Clearance
A copy of NSO birth

6. Pre-employment The chosen candidate/s will be The induction of the

subjected to a one (1) week candidate for the job
and Induction
orientation and training for the position will be done
Job position. The orientation after the one week
and training of the candidate training and orientation.
must include the following:

Orientation about the

business vision, mission
and history.
Orientation with the
Rules and regulations in
the workplace.
Hands-on training on the
job that the candidate
had applied for.
Orientation on Legal
process for any concerns
on the job.

The Department Manager must

facilitate the orientation and
training of the chosen

The candidate will start working

and be inducted to the job
position upon the completion of
the one week requirement.

E.2. Training and Development Program

MUSA x Co plans to enhance and maximize the skills and potential of the
employees through these following programs presented in tabular form with the
corresponding policies:

A program where Regular or non - Semi
Sewers are trained of regular sewers of Annual/twice
different stitching skills MUSA x Co. are a year; month
An experienced sewer of highly required to of June and
A. Hands-on Skills
bags will serve as the participate. January (two
trainer of the program consecutive
The program will expose Attendance of the days of the
to sewers in different newly hired first week of
High end bag designs. sewers is the chosen
compulsory months)
This is a research tour This is a Once a year;
that the team will be compulsory 2 day tour
taking to be oriented with activity for the
B. Research Tour the different high end bag Subheads
for the Team designs and materials. together with the
Heads/ General Manager
Subheads A tour where the team will
be looking and
canvassing high quality
raw materials.
The activity aims to All people
create trust within the working under Once A year
business. MUSA x Co are
required to
C. Team Building
Employees have to do participate
different activities that will
make them work with
their colleagues.

The activity will

The table shows the long term Training and development plan of MUSA x

Co. Initially, the team will be training the sewer in creating high end bags

before the launching of MUSA x Co.

E.3. Employee Motivational Program

Increasing employee motivation is one of a managers critical task

affecting substantially the performance output of an organization throughout

the long run. Department Heads/Supervisor can be surpassingly proficient at

enhancing motivation when equipped with the right information and proper

techniques in disseminating effectively the companys motivational program.

1. The Development, implementation and revision of rewards programs would

involve the participation of all employees

In order to encourage communication, reward system should be discussed

by the management in congruence with the employees or (representative from

each position).

2. Rewards should denominate satisfactorily the employees effort.

Involving the employees in the motivation program process includes a

crucial consideration that exhibited rewards worth the effort

Managers should value employee input and select rewards accordingly.

Employees are more motivated to perform well with accounted reward


3. Manager/Department Head should make sure that appropriate and effective

understanding of the reward system is disseminated to the employees

Managers should clearly delineate how employees can earn rewards. When

employees have a comprehensive understanding of what is expected of them,

they will be more capable of achieving performance standards.

4. Set reasonable and transparent performance standards for rewards

Employees must see the reward system in SMART bound

Check in with employees to ensure that they believe the rewards are within

their reach.

Also, providing the employees with a dashboard where they can view their

performance in real time will allow them to accurately assess their own

performance and have realistic expectations for rewards.

E.4. Employee Retention and Discipline Policies

When discipline is necessary for an employee retention in cases of

problems in behavior and/or performance, Musa X Co. employees should be

provided with comprehensive overview of the Employee Retention and

Discipline Policies (ERDP) enumerated below:

Musa X Co. would consider three types of just causes for disciplinary action:

Unsatisfactory job performance

Grossly inefficient job performance

Unacceptable personal conduct

Unsatisfactory Job Performance

Unsatisfactory job performance occurs when an employee fails to meet job

requirements as related performance expectations, but is not limited to:

failure to produce a sufficient quantity of work

failure to produce work of acceptable quality

failure to produce accurate work

failure to produce work on time

poor manner of work performance

continued tardiness, absenteeism or other abuses of leave

Grossly Inefficient Job Performance

Grossly inefficient job performance occurs when an employees actions (or


result in death or serious bodily injury, or create conditions that increase

the chance for death or serious bodily injury, to an employee, or individuals in
relation to the business

result in loss of or damage to company property or funds that has a serious

impact on the company

Unacceptable Personal Conduct

Unacceptable personal conduct occurs when an employee exhibits any

severe or pervasive behavior that may disrupt the workplace, and/or that may

constitute abuse of any person. These include but are not limited to:

harassing, discriminatory or retaliatory actions

violence or other aggressive or disruptive behaviors

illegal activities


misuse of property

These types of behavior or problems could result in immediate termination

after a proper investigation.

Types of Disciplinary Action

This policy establishes four types of formal disciplinary action:

Written warning (WW)

Suspension without pay for one or two work weeks (SP)

Demotion to a lower position and/or lower pay (LP)

Dismissal (DS)

A table is provided below wherein the causes for disciplinary actions are
complemented with appropriate action for each degree of offense.

Causes for Disciplinary Types of Disciplinary Actions

Unsatisfactory Job 1st Offense 2nd Offense 3rd offense 4th Offense
Failure to produce a sufficient WW WW LP DS
quantity of work
Failure to produce work of WW SP LP LP
acceptable quality
Failure to produce accurate WW WW LP DS
Failure to produce work on WW WW LP DS
Continued tardiness, WW WW LP DS
absenteeism or other abuses
of leave
Poor manner of work LP SP SP DS
Grossly Inefficient Job
Result in death or serious LP LP LP DS
bodily injury, or create
conditions that increase the
chance for death or serious
bodily injury, to an employee,
or individuals in relation to the
Result in loss of or damage to LP LP LP DS
company property or funds that
has a serious impact on the
Personal Conduct
Harassing, discriminatory or WW SP LP DS
retaliatory actions as defined
by University policy
Violence or other aggressive or SP SP LP DS
disruptive behaviors

Illegal activities SP SP LP DS
Insubordination SP LP LP DS
Misuse of property WW WW LP DS

*Given the potentially serious nature of progressive discipline, the employees must be
informed comprehensively. The supervisor shall be responsible and accountable for the
disciplinary decision.

Code of Conduct and appeal to Process

A Code of Conduct set the standard of behavior expected among the employees. With
a Code of Conduct in place, employees are less likely to be taken by surprise if
disciplined about inappropriate behavior in the workplace
An appeals process assures employees that their concerns will be heard

Lengths of Suspension

There is no set standard for the length of suspensions, however, the employer must be
consistent from one situation to the next
Some organizations start with a one-day suspension and allow for additional
suspensions of three days, five days, ten days, etc. after the initial and subsequent
suspensions. This will depend on the nature of the behavior

Once the discipline policy and process for your organization is established:
Clearly communicate the discipline policy and process to your employees
Clearly communicate the organization's expectations for behavior
Apply the discipline policy fairly and consistently
Base disciplinary decisions on the facts of each situation

F. Registering Your Business

To register a partnership in the Philippines the business must first verify and

preserve the proposed partnership name, in this case, Musa X Co. The name of

the partnership must be registered to the Securities and Exchange Commission


Articles of Partnership should be created to ensure that the owners/

partners know that they are equally responsible for the liabilities and assets

according to agreed-upon percentages. The Articles of Partnership being a legal

document may help in resolving and preventing disagreements since it clarifies the

terms of the relationship.

The next step in registering a partnership is to prepare a Written

Undertaking to Change Partnership Name by any Partner this is to follow the

Memorandum Circular No. 8 of the Securities and Exchange Commission (SEC)

of Section 17. That we, on behalf of the said corporation/partnership, hereby

undertake change its corporate/partnership name, as herein provided or as

amended thereafter, immediately upon receipt of notice or directive from the

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 registered name or contrary to public morals, good

customs or public policy. A registration Data Sheet is also required. Additional

requirements include the Tax Identification Number (TIN) of the partners. File the

complete documents with the SEC, upon payment of the requisite filing fees.

G. Administrative Supplies and Expenses

The following table presents the Administrative Supplies and expenses of

MUSA x Co. with the corresponding Unit production Cost and Monthly Production
Cost incurred:

Administrative Supplies
Monthly Production Cost
and Expenses

Office Supplies Expense 500.00

Travel Expense 660.00

Miscellaneous Expense 50.00

Training and Development

Program 500.00

Motivational Program
Expense 300.00

TOTAL 1, 100.00

H. Pre-operating Activities and Expenses

The following table show the Pre operational Activities and Expenses that

MUSA x Co. will be incurring with the corresponding unit production cost and

monthly production cost:

Product Research and
Business Registration
Promotional Activities 4,500.00
Equipment 276.00
Start-up Inventory 8,407.32
Recruitment of Labor 200.00
Employee Training 500.00


A. Green Marketing Strategies

The strategies, which are to be employed by MUSA x Co. to expedite green

marketing as well as attain consumers high satisfaction point through eco original

and economically attainable products are elaborated in the following:

A.1 Abaca scraps used to create ropes

Musa x Co. want to minimize waste and use it to make it an advantage, and

strengthen our eco-friendly objective to help the community by employing people

who create the ropes which are also used in the bags. Saving scraps means

saving money, so with the increased efficiency we will be able to reduce prices.

A.4 Gloss processed abaca used as fabric exterior

Abaca is gloss-processed and used as the main material instead of using

faux leathers and other fabrics to create the bags.

B. Green Technology Methods

Musa x Co. will employ the following green technology methods:

B.1 Abaca wastage, braided to create a rope

The remaining abaca used in the weaving is reused by braiding it to create

abaca ropes. The ropes are then used in both the single handle and sling of
the bag. The abaca ropes are also dyed and gloss processed to diminish its

B.2 Old foam matrasses used as the base of the bag

Distorted foam mattresses are reused to create the base and the piping of
the bag. The foam mattresses are flattened to create a strong sleek design

of the bags base and pipings which helps the bag to carry heavy weight


A. Project Cost / Total Capital Requirement


Direct Material 20,000.00

Direct Labor 4, 133.00

Overhead 5, 185.00

Selling and Administrative Expenses 3, 170.00

TOTAL 33, 221.73

B. Financing Sources

Initially, the proponents will source out the financial requirements for the
business from their own personal investments.

C. Financial Statements

C.1 Cash Flow

Statement of Cash Flows
For the month ended January 2016

Cash, beginning 33,221.00

Cash flow from Operating Activities
Purchase of inventory (27, 046.26)
Operating expenses ( 3, 170.00)
Sales of bags 37,864.74
Net Cash Flow from operating act 7,648.48
Cash ending 40,869.4

C.2 Income Statement

Statement of Comprehensive Income
For the month ended January 2016

Sales 37,864.74
Less: Cost of Sales 27,046.26
Gross Income 10,818.48
Less: Operating Expenses
Advertising Expense 1,570.00
Motivational Program Expense 300.00
Research and Development 200.00
Travel Expense 200.00
Training and Development Expense 150.00
Registration Expense 100.00
Supplies Expense 50.00
Recruitment Expense 50.00
Miscellaneous Expense 50.00 3,170.00
Net Income 7,648.48

C.3 Balance Sheet

Statement of Financial Position
As of January 2016

Cash 37,864.76
Inventory 3004.716
Assets 40869.48

Capital, beg 33,221.00
Add: Net Income 8,148.48
Capital, end 40,869.48

D. Profitability Indices

D.1 BEP in Sales and Units

Fixed Cost___
BEPunits = Selling Price per Unit Variable Cost per Unit

2103.60 - 1,503.57

= 600.03

BEPunits = 6.67 or 7 units

BEPsales = Selling Price per Unit x Break-even in sales units

= 2103.60 x 7 units
BEPsales = 14,725.20

D.2 Return on Investment

Net Income___ X 100

Total Assets

= 7,648.48
X 100

ROI = 18.71%

D.3 Payback Period

Payback Period =Initial Investment / Cash Inflow per Period
= 32,721.00/40,689.48
= 0.80


MUSA x Co. is a business that will not just be known for the creation of high end
bags accented with weaved fibers, produced from the adopted community. But also a
business known to have a cause through socio economic impacts. The socio-economic
impacts for the adopted community are presented in the following components:

A. Present Employment and Income status of the adopted community

In terms of employment, weaving abaca is the occupation of the four employees

and one employee is a collector of Iligan Drivers Association at Barangay Pala-o.

Wheelman is the occupation of the husband of the three employees and carpenter for

the two employees husband. The other sources of income of the two employees are

selling biko and engaging a sari-sari store, and three employees depend on weaving


The total income of the household per month of the four employees is five thousand

pesos (5,000.00). On the other hand, eleven thousand pesos (11,000.00) for one

remaining employee.

B. Present aesthetic condition of the adopted community

Factors considered to have a clear overview over the employees living were

housing which composes of source of lighting and water supply, type of house, kind

of toilet facility, number of functional appliances and regular activities


In terms of housing, all of the employees have their own houses powered with

electricity as a source of lighting. Source of water supply of the household of two

employees is the Iligan Water District, two households use water pump and one uses

well. The type of house for four employee households are wood and one has a

concrete type.

For the team to have a limpid visualization of the kind of aesthetic living among the

employees, one of the data ask in the survey is to determine the kind of toilet facility

each employees household has. Two checked flush toilet, two answered ordinary

toilet and one no toilet or bush.

Also, to determine the degree of convenience among the employees living, the

team surveyed the number of functional appliances they used. All of the employees has

the average number of 3 appliances used usually television, rice cooker and heater.

Moreover, regular activities undertaken by the employees household data have

been taken to classify the degree of how the employees and their family are in ordinary

living. All of them though in a small scale basis do cleaning or maintenance of house,

cook meals/food, attend church service, shop.

Overall, considering those factors, the average of the employees are living in an

ordinary form of living.

C. Proposed Employment and Income Interventions for the adopted community

MUSA x Co would like to extend and maximize its capacity to provide and help

the laborers in most possible way. The following are the proposed Employment and

Income intervention for the adopted community:

1.) Per piece rate of Bag Production

This mode of rating the employees income intervention would increase their

motivation factor to produce sufficient demand of units at the required period of


2.) Bonus Provision depending to sales

The team would provide bonuses whenever sales would increase at a

certain satisfactory level.

3.) Non-monetary Give- Aways

Musa X Co. heads would conduct a program that would include supplying

the employees household with their basic necessities (e.g. school supplies,

emergency kits, etc.)