CHAPTER I

THE PROBLEM AND ITS SETTING

This chapter presents the Introduction, Statement of the problem,

conceptual framework, and significance of the study, scope and limitation and
definition of terms.

Introduction

The ultimate goal of any business establishment is to remain in business

profitably through production and sale of products or services. Without optimal
profit, a business firm cannot survive, let alone achieve a sustainable growth. One
of the core activities in a business company is the marketing and sales activity.
The ultimate success or failure of a company depends on its ability to sell what it
produces and continues the production-sales cycle for relatively a longer period of
time (Getinet, 2007).

Churchil et al. (2000) stated that certain human qualities and characteristics
make some sales people highly successful. Attributes such as physical
characteristics and other personal factors have been examined as contributing to
excellent performance. Snyder et al. (2001:576) proposed that the “combined
cognitive processes of resourcefulness in goal attainment and motivation” hold
answers as to why some salespeople excel when others do not. The combined
cognitive processes of resourcefulness in goal attainment and motivation,
otherwise known as hope, are believed to hold answers as to why some
salespeople excel when others do not. Snyder et al. (1991) proposed that the
ability to accomplish goals hinges on the level of motivation as well as a person’s
ability and resourcefulness to overcome obstacles that may impede goal
attainment.

Today, business is conducted in a dynamic environment where everything

is changing and changing fast. A successful business is one which not only
recognizes this fact and prepares to face the challenges posed by the change but
influences the speed and direction of the change to make the conditions more
conducive for its survival and growth. Churchill (2003), stated that the highly
dynamic and competitive environment of the 21st century demands a more
responsive, flexible approach to sales management. Sales are becoming less
hierarchical with fewer layers of management while more responsibility is being
given to the sales person.

Many firms face markets that demand high level of service. Firms that sell
capital equipment, for instance, must provide their customers with installation and
maintenance service; fashion manufacturers must provide rapid order processing
and delivery; and firms that sell electronic components must offer special product
design and engineering services. These services must be integrated with the rest
of the firm’s marketing and selling activities for the company to compete effectively
(Churchill, 2003).

The sales department of a company is responsible for the selling of products

and its accompanying activities such as pricing, promotion, maintenance of
customer satisfaction and related activities. If the performance of the sales
department is not tantamount to the expectation of customers, sales volume would
decline. This reduction of sales would inevitably threaten the overall livelihood of
the firm (Darsie, 2003).

The sales (selling) concept holds that customers, if left alone, will not
ordinarily buy enough of the organizations products. The organization must
therefore undertake an aggressive selling and 4 promotion effort. This is to mean
that under normal circumstance customers show inertia or resistance unless they
are pushed to buy. So the company must use effective selling and promotion tools
to stimulate more buying thereby increasing sales volume (Kotler, 2001).

The researchers would like to conduct a study on factors affecting the sales
decline of Folded and Hung KCC Mall and determine what factors that affect the
sales decline of Folded and Hung KCC Mall.
Statement of the Problem

This study will determine the Factors Affecting the Sales Decline of Folded
and Hung KCC Mall: A Guide to a Better Financial Management System.

Specifically, this study will answer the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Age
1.2 Sex
1.3 Civil Status
2. What are the factors that affect the sales decline of Folded and Hung KCC
Mall?
3. How do the factors affect the company in terms of:
3.1 Customer Retention
3.2 Profit
Conceptual Framework

Figure 1 shows the conceptual framework use in the study. It shows the
relationship between the independent variables and dependent variables.

Independent Variable Dependent Variable

Folded and Hung Factors affecting sales

KCC decline

Figure 1 Conceptual Framework

This diagram shows the independent and dependent variable. It shows the
factors affecting of Folded and Hung KCC Mall in relation to their financial
management system. The illustration shows the relation of the independent
variables which is the sales decline of Folded and Hung KCC Mall and the
dependent variable which is the factors affecting.
 BIBLIOGRAPHY

Online

Philip Ackel (2005) .Factors Affecting Sales of the automotive industry in Europe

Philip Kotler (2000) .Principles of marketing: Parentice –Hall

PkSaha and Kc Raut (2003). Salesmanship and Sales management (3rd

edition).New Delhi : Vikas Publishing house Private Limited .

Philip Kotler, et al(2005) .Principle of Marketing (4th edition ) European edition .

Philip Kotler (2004) .Marketing management (9th edition) Parentice –Hall

Churchill (2003).Sales force management ( 7th edition) .Boston McGraw- hill

Higher Education .

GetinetHailu (2007). Marketing and Sales strategies of ELFORA Agro-industry

PLC.

Gilbert A. Churchill, JR. (2000).Marketing Research: Methodological Foundations

(7th edition) USA: the Dryden Press :

Philip Kotler (2001) .Marketing management (9th edition) Parentice–Hall

Link

https://opendocs.ids.ac.uk/opendocs/bitstream/handle/123456789/5157/Assessm
ent%20of%20Factors%20Affecting%20Sales%20Volume.pdf?sequence=1
FACTORS AFFECTING THE SALES DECLINE OF FOLDED AND
HUNG KCC MALL: A GUIDE TO A BETTER FINANCIAL
MANAGEMENT SYSTEM

A Business Management Research

presented to:

MR. ROGER A. PAUYA, CGM

Course Facilitator

In Partial Fulfillment of the Requirements in Business Management Research

(BMR)

By:

Anthony Villanueva

Ritchel Monterde

Ryan Suerte

Darwin Tanteo

Mary Angeli Villanueva

October 2019
Significance of the study

This study is important to the following:

Manager of Folded and Hung KCC Mall

This study will help the manager of Folded and Hung KCC Mall to administer
its cost and to pinpoint on the aspects of the business where concentration must
be placed.

Future Researchers

The outcome of this study is beneficial to the future researchers. And the
ideas presented on this study may be used as reference data in conducting new
research about the factors that affects the sales decline.

Researchers

This enables them to look for strong evidences and responses from the
respondents. It improves their research skills little-by-little.

Customer of Folded and Hung KCC Mall

The result of this study will help customers who aimed to have a business
to the future. This study can serve as key to become the most successful in the
business organization.

Scope and Limitation

This study will cover the factors affecting the sales decline of Folded and
Hung KCC mall for the better financial management system. The respondents of
the study will be 50 selected customers of Folded and Hung KCC mall. The study
will be conducted at KCC mall J. Catolico Avenue, Lagao Highway, General
Santos City between August 2019 and September 2019 only.

This study is limit only in the Factors Affecting the Sales Decline of Folded
and Hung KCC Mall; A Guide to a better Financial Management System.
Definition of the terms
The following terms are defined for the understanding of the readers:

Decline- conceptually defined as a situation in which a security's price

decreases in value over a given trading day and subsequently closes at a lower
value than its opening price. It can be used in reference to other metrics, such as
revenues and expenses, used to measure performance of the given security. A
decline can happen for several reasons, including a reduction in the firm's intrinsic
value or as a result of the security's price dropping below its support level.
(investopedia.com)

External Factors- conceptually defined as elements that influence a

business’ results and performance from the outside. These factors are often part
of the economic, political and social environment of the locations where the
company operates. (myaccountingcourse.com)

Folded and Hung KCC Mall General Santos City- operationally defined
as the research locale of this study, located at J. Catolico Avenue, Lagao Highway,
General Santos City.

Internal Factors- conceptually defined as inner strength and weaknesses

that an organization exhibits. Internal factors can strongly affect how well a
company meets its objectives, and they might be seen as strengths if they have a
favorable impact on a business, but as weakness if they have a deleterious effect
on the business. (businessdictionary.com)

Sales- conceptually defined as activities related to selling or the number of

goods or services sold in a given time period. (en.wikipedia.org)