COMPANY AND INDUSTRY

A. BACKGROUND The leisure service industry is one of the largest, most diverse, profitable and ubiquitous, and fastest growing industries in the world. Leisure service industry encompasses a wide range of activities, facilities and services including sports, physical fitness, recreation, arts and entertainment, and devoted to providing ways to fill its customers leisure time. People realized that they need time for relaxation to keep them healthy and fully productive. Facilities such as playing fields and public swimming baths were provided, sports equipments were manufactured and the modern leisure industry was born. In the 20th century, a number of factors have caused the nature of leisure activities. The amount of time and money available for leisure has never been greater than today, and the trend is forecast to continue. This industry-wide trend is forecasted to continue because industrialization and urbanization provide people with more time and money for their leisure, greater mobility, increase attraction for spectator sports, greater interest in healthier lifestyle and many more. There are likely to be more new mixed leisure concepts providing varied and extensive combinations of activities all under the same roof. Nowadays, the mall culture has become part of the Filipino lifestyle and demolished the long held belief that Filipinos are such tightwads that you will need a vise to pry their money out of their hands. Today, Filipinos wanted value for their money. And we believed Bataeos share the same sentiments and preferences.

Hence, the proponents conceptualized an idea to build a leisure mall located in Ibayo, Balanga City, Bataan, named as Bataan Leisure Mall, where everyone can spend their leisure time relaxing. Bataan Leisure Mall is a mixed leisure concept providing varied and extensive combinations of activities such as food shops, bars, convenience store, sports center, multi-activity entertainment centers, gymnasium/fitness center, childrens play attractions, and conference center, all in a single complex. The challenge that Bataan Leisure Mall shall be facing is how to provide not just a place to dine but a Lifestyle Center for all Bataeos. While known, leisure mall is more known for its upscale clientele (classes A, B, and broad C), Bataan Leisure Mall will try to veer away from targeting class types and instead focusing on drawing people using psychographic profile of clients. This means creating for the book types, the gym types, the leisure types, etc. Balangueos are not the only steady clients Bataan Leisure Mall. The mall has an advantage being located along the Bgy. Ibayo, in front of Bataan Transport Mall. The location can draw a lot of mallers and customers as well.

B. COMPANY PROFILE The business adopts corporate type of organization, primarily because of the substantial amount of investment requirement, since corporation has greater ability to acquire funds. In addition, other advantages of this type of business organization

are: perpetual existence; limited liability; freely transferable shares; operational structure. The company will be named as Bataan Leisure Mall, Incorporated. Bataan Leisure Mall, Incorporated (BLMI), is composed of its stockholders and board of directors elected by the members to fixed the policies and conduct of business, and highly-driven and top-ranking officers who actively manage the companys affair. Its structure will operate through delegated authority and responsibility.

Vision An innovative, diverse, and socially responsible organization existing for the ultimate satisfaction of customers and stakeholders while utilizing the resources at its maximum level.

Mission To be the premier and leading leisure service provider. To be a pioneer in the creation of competitive, state of the art leisure facilities and amenities.

SERVICES Bataan Leisure Mall offers numerous leisure services for customers where they can spend leisure time for fun, relaxation, recreation, entertainment, sports, gym/fitness workouts and more. The services include but not limited to the following:

Childrens Play Attractions It provides all kinds of children friendly structures for them to play and have a bit of social interactions with fellow children.

Entertainment Center It provides KTV rooms and other entertainment devices for families or any groups.

Multi-Activity Center It provides electronic games and devices for developing intellectual ability and skills.

Music & Arts Center It provides musical and art products for sale; and learn how to play musical instruments and take up voice, acting, even dancing lessons.

Beauty & Fitness Center It offers services for beauty and health-conscious people and health-buffs. It provides facilities to have great work-outs, aerobics and exercises. Sports Center It provides facilities to play badminton, racquetball, darts, billiards and shoot pool.

Conference Center It furnishes schools, companies, or any organization a venue for conducting conferences, seminars, meetings and other similar functions.

Bar/Coffee shops Provides services for customers who like to unwind after a hard days works, who just want to sit and sip a drink, and/or have conversation with friends, associates or bar/cafe patrons.

Convenience/Variety Store Services available to everybody who needs items at the store.

Food Shops Food court section of the mall. foods. Purveys customers with good-tasting

Shopping Stalls Its the section for retail/merchandising purposes, where customers can buy items like clothes, bags, shoes, etc. Not all services will be provided and operated by the mall itself. The company shall accept tenants to cater for other varied services. Thus, the mall shall be similar to the usual mall operations but differ only with the fact that the leased stalls would not serve for retail purposes mainly but for leisure services instead.

Bataan Leisure Malls competitive advantage over its individual competitors is its uniqueness. It is distinct in the sense that all leisure services, activities, and facilities are housed in a well-designed and engineered single roof structure. Customers need not hop from one recreational establishment to the next to be able to do all the activities they like to do during their leisure time.

Each customer will be treated with respect and be accorded with the best possible service for their ultimate satisfaction, hence, earning their loyalty and retention.

MARKETING RESEARCH AND EVALUATION

SITUATION ANALYSIS Bataan Leisure Mall is a start-up company and marketing will be crucial to its success and profitability. Bataan Leisure Mall offers numerous activities, exquisite facilities and top-rate services. The physical structure that will house Bataan Leisure Mall will be especially designed and engineered to please even the most discriminating customers.

MARKET DEMOGRAPHICS Families, the ABCDE classes Sex: Male; Female Age: <1 12; 13 16; 17 22; 22 35; 36 50; 51 and above Status: Students; Employed; Self-employed

MARKET NEEDS The presence of many individual leisure service providers - computer games shops, badminton courts, pool halls, KTVs, music stores and schools, gymnasium, fitness center, amusement center, and food shops - all over the province of Bataan, notably in Balanga City, is a clear indication that there is a growing demand for leisure services, activities, and facilities. Bataan Leisure Mall will be meeting this market needs by providing progressive services, varied activities, and wider facilities. It also seeks to fulfill the following benefits that are important to customers:

Selection: Accessibility:

A wider selection of services, activities, and

facilities.

It will be located in a place where the means of transportation is easily available.

Customer Service: Each customer will be treated with respect and highest level of attention and concern. Pricing: All prices of the offerings will be competitive relative to the true competitors.

DEMAND ANALYSIS To determine the feasibility and viability of the leisure mall, random sampling with sample size of 400 respondents was used in data-gathering, accompanied by personal interviews whenever feasible. The sample size chosen was based on a reasonable method being used in researches. To arrive at the number of sample size, the formula below was used:

P ________ 1 + Pm2

where:

S = sample size P = Size of the entire population m = margin of error deemed tolerable

According to the National Statistics Office (NSO), the population of Bataan province as of the year 2000 was 557,659. The tolerable error of 5% was used. Based on the data given, sample size was computed as follows: S = 1 + Pm2 = 1 + 557,659(.07) = = = 557,659 1 + 557,659(.0049) 557,659 1 + 2732.53 278
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P 557,659

Projected Demand for the Years 2007 2011 Year 2007 2008 2009 2010 2011 Projected Target Target No. of Percentage of No. of Times No. of Market Customers willing based (three times Residents on survey a month) 671,531 10% 67,153.10 94% 36 689,595 10% 68,959.50 94% 36 708,145 10% 70,814.50 94% 36 725,194 10% 72,519.40 94% 36 746,755 10% 74,675.50 94% 36 Projected Demand 2,272,460.90 2,333,589.48 2,396,362.68 2,454,056.50 2,527,018.92

The number of residents is projected by using the yearly increment of 2.69% based on the average population. NSO population survey as of the year 1995 was 491,459, while as of the year 2000, it was 557,659. The difference of 66,299 is divided by 5 year, thereby, arriving at 2.69% increase in population yearly. (66,200/5) / 491,459 = 2.69%

SUPPLY ANALYSIS It is apparent today, that the province of Bataan is in a fast-growing status in terms of industry, development of urban areas, and population. As a result, recreational establishments follow suit. There are lots of recreational establishments as follows:

ESTABLISHMENTS MALLS RESORTS PARKS BOWLING ALLEY FASTFOODS AMUSEMENT CENTER GYM/FITNESS CENTER POOL HALLS BADMINTON COURT KTV

NUMBER OF ESTABLISHMENTS 4 15 2 2 5 1 32 25 4 20

Even though the above of recreational establishments are available, there is still a felt scarcity of supply especially during weekends and holidays when malls and fast food chains are overcrowded with people. Many people are complaining and looking for new and different recreational venue to go to.

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SWOT ANALYSIS The following SWOT analysis captures the key strengths and weaknesses within the company and describes the opportunities and threats facing Bataan Leisure Mall.

STRENGTHS Very accessible. Wide range of services, varied activities, and exquisite facilities. Excellent staff that are highly trained in customer service Very broad market, it can prospect the population in all walks of life regardless of age and sex. Encourage people to engage in business, thus promotes entrepreneurship.

WEAKNESSES Limited baseline data to measure success. Taking care of everything with low labor overhead. Difficulty to ensure the security of each and every customer due to large number of people at a time inside the mall. No formal tracking system to identify the customers in relation to what program and services they have availed.

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OPPORTUNITIES There is an increase in leisure time resulting from reduced hours of labor, longer holidays/holiday economics, early retirements, and high rate of unemployment. Greater mobility due to availability of transportation, private and public. It provides greater access to the mall. Greater interest in healthier lifestyle recently, thus, increases demand for gymnasium and fitness facilities. Increase attraction in spectator sports by large number of people, thereby, increases demand for sports facilities. Opportunity of operating additional leisure services thereby increasing revenues.

THREATS Various surveys and studies reveal that lack of time is one of the key barriers in participating in leisure activities. Slump in economy, peoples discretionary income decreases. Competition from the existing malls and other recreational establishments and possibly new entrants.

MARKET SHARE Bataan Leisure Mall is projecting to serve majority of the market in the span of five years.

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MARKETING PLAN

COMPETITION Competition comes in several forms Bataan Leisure Mall has no direct competitors per se, only its individual activities and/or facilities. Providing all the services, activities, and facilities in a well-designed and engineered single complex is Bataan Leisure Malls competitive advantage over its competitors. The customers need not hop from one recreational establishment to the next to be able to do all the leisure activities and/or use different facilities during their leisure hours. It provides comfort and convenience to the customers.

MARKETING STRATEGIES MARKETING OBJECTIVE To create sustained maximum awareness at all times.

TARGET MARKET People in all walk of life (the ABCDE of the society), regardless of age and sex, who need a recreational establishment where they can do all the activities they like to do and/or use all the facilities during their leisure hours.

POSITIONING

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Bataan Leisure Mall, Incorporated: The premier and leading leisure service provider in Bataan.

SERVICE POLICIES Provide each and every customer with the best possible service.

PLACE The BLM will be located in de Lerma St. Ibayo, City of Balanga, Bataan, in front of Bataan Transport Mall so it is very accessible to the riding public and private vehicle owners. The physical structure of the mall will be especially designed and engineered to satisfy even the most discriminating customers. Each facility will be customized according to the needs of the activities.

PROMOTION Advertisements will be placed in various local newsletters/newspapers, local radio station and cable television station. Ad posters, banners, and streamers will be posted in strategic locations throughout the province. Promotional pamphlets and flyers will also be distributed. The message that will be communicated is that Bataan Leisure Mall offers the ultimate and most innovative ways to have fun, relaxation, and recreation. Internet strategy will be used where a website shall be designed and maintained for easy access on services, activities, and facilities being offered.

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Networking strategy will be implemented among residents of Bataan, since the towns in Bataan are close-knit communities where people tend to know each other. Bataan Leisure Mall management and staffs will leverage their contacts with the community to raise awareness on the presence of the mall and the services, activities, and facilities available. This networking campaign might not cast as large as a net as advertisements will, it cost far less and the relationships that it builds will be far stronger because of the trust-relationship that has already been established. Customer-partner relationship strategy will be worked out schools, offices, companies, and other local groups. Free entrance fee for the first week of operation. Discounts for senior citizens and children will be available during regular operations. with various

PRICING Customers will be charged entrance fee per person. Children below one year old will be free of entrance fee. Discounts will be available for senior citizens and children one year old to seven year old. Competitive and reasonable pricing scheme will be adapted for leisure facilities owned and operated by the mall itself. Tenants will be charged with competitive amounts based on per square meter occupied for rentals/leases, so as to enable them to charge a reasonable rate to customers for the respective services provided.

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OPERATIONAL PLAN LOCATION The company is situated at De Lerma Street, Ibayo, Balanga City across the Bataan Transport Mall. Its location is considered one of its competitive edges over the competitors. Before choosing the project site, the company considered several factors. Regarding the climate, the place has two pronounced seasons which are dry form November to April and wet during the rest of the year. The location of Bgy. Ibayo is mostly used for residential, commercial, and agricultural purposes. Large vehicles such as delivery trucks for consumable supplies aggregates; emergency trucks can pass and have access. customers. Fast Facts About Balanga City: Country --------------------------------------------Philipines Province -------------------------------------------Bataan Area -------------------------------------------------11,163 has. Population (2000) --------------------------------71,088 No. of Barangays ---------------------------------25 Households Population -------------------------70,753 No. of Households -------------------------------14,605 No. of Establishments Trading ------------- 1,645 - Manufacturing -------------------------- Services ---------------------------------- Agri-Based ------------------------------No. of Banks --------------------------------------24 915 25 18 And most importantly, the site is very accessible to supplies and

Language/s ----------------------------------------Filipino and English

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The central business district of the city, the Bgy. Poblacion recently has been crowded with different establishments, this requires extending the commercial/business activities to other nearer barangays and for that matter the proponents selected Bgy. Ibayo as its suitable location.

MALL SIZE The Bataan Leisure Mall Incorporated has a total land area of 4,000 sq. meters. It will be used for the initial mall structure at about 2,000 square meters. The remaining area is reserved for parking space, and as provision for future expansion.

OPERATING POLICIES Top Management is responsible for formulating business policies, personnel administration, business supervision and fiscal. The Administrative Department is responsible for carrying out all instructions and directions to ensure the day-to-day business operations. The Marketing Department is in charge for boosting sales and customer service relationship. Entertaining any customer complains, comments,

suggestions, queries and the likes are the responsibility of the Customer Service Department. The Technical/Maintenance Department responsibilities include the maintenance of the whole building for 13 hours a day, 7 days a week including the necessary minor and major repairs thereon.

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The Top Management will administer the mall operations for 8 hours a day, 7 days a week. The employees including the security guards will work for 13 hours a day, 7 days a week. The leisure mall will be open to customers from 9 in the morning to 10 in the evening. Employees compensation is on a monthly basis and paydays are on the 15th and the 30th of the month.

CONTRACT OF LEASE 1.) Terms of Lease The period of the contract will be as agreed upon by both parties. Contract of lease is renewable subject to the new terms and conditions as may be agreed upon by the parties. Three months before the expiration of the contract, the lessee shall signify in writing his intention to renew the lease contract.

2.)

Rent / Area The rental fee is P600 per square meter a month. Rent shall be paid at the Lessors office within the five calendar days of the month, or by postdated checks at the Lessees option. Three months deposit and three months advance rental are required upon signing of the contract. Security deposits shall in no case be applied or be substitute to the monthly rental.

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3.)

Electricity Consumption (Individual) Each shall be separately and individually charged for their electric consumption in accordance with their electric individual meter reading consumption for each month.

4.)

Additional Provisions: a. Improvement as well as electric requirement must be with Bataan Leisure Malls prior approval and shall be for the Lessees sole account. b. All construction plans/designs by the Lessee shall be submitted to Bataan Leisure Mall for evaluation and approval prior to actual construction and must be completed within thirty days from date. c. The Leased space improvements must be of superior quality and aesthetically at par with the malls standard. d. The Lessee is required to renovate/refurbish the leased space once every two years to maintain and ensure the quality of space. e. Sub-leasing/charging the ownership of the business entity will not be allowed and will constitute a violation of the contract of lease, and can be ground for cancellation of the contract of lease.

5.)

Escalation / Rental Rental escalation fee will be ten (10%) percent every year.

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6.)

Security Deposit Upon execution of the contract and prior to possession of the leased premises, the Lessee shall deposit in cash the amount equivalent to three months rental to guarantee the fulfillment of all its obligations under the contract. This Security Deposit shall upon the termination of the lease, will be refunded to the Lessee less whatever account or accounts which might then be owing to the Lessor such as but not limited to the cost of repairs of any damaged portion of the leased premises.

7.)

Exclusivity The Lessor warrants that it will not allow any type of business within the Bataan Leisure Mall Commercial Complex that will compete with the business that the Lessee intends to put up in the building. Violation of this warranty shall subject the Lessor to whatever damages it may sustain as a result of the said violation.

8.)

Bataan Leisure Mall Common Area Charges It shall be understood that the Lessee shall remit to Leisure Mall Management upon turnover of the leased premises/space the share in common area expenses, for security services, janitorial services, pest control, electrical and air-conditioning charges in the amount of P50 per square meter a month.

9.)

Public Utilities Lessee shall be responsible for the payment of the aircon, electricity, water and other public services or utilities within the leased area.

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10.)

Interest / Penalty Overdue accounts that remain unpaid for two successive months shall be subject to a three (3%) percent penalty per month until fully paid.

11.)

Taxes During the term of the lease, the parties shall shoulder for their own accounts all their respective annual business permits, tax assessments and fees for the continued operation of their respective business concerns. The Value Added Tax (VAT) imposed on the rental payment shall be for the account of the Lessee.

12.)

Government Licenses And Permits The Lessee shall obtain for his own accounts all necessary government permits and licenses to effectively exercise and enjoy all the improvements and activities around and within the leased premises including but not limited to building permits, electrical permits, mayors permits and the like.

13.)

Improvement On Leased Premises The Lessee shall have the right to install fixtures, furnishings, etc. in the leased premises with the right to remove its fixtures and furnishing upon the expiration of the lease or any extension thereof, provided the removal of the fixtures and furnishing would not damage the building. The Lessee shall upon termination of the lease or any extension thereof surrender to the Lessor the possession of the premises in the same conditions and repair as of the time the Lessee first took possession thereof, except to the deterioration caused by earthquake, fire, tornado, typhoon and robbery and so forth, or circumstances beyond control of the Lessee.

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14.)

Maintenance The Lessee shall made ordinary repair to and perform normal maintenance of the premises so as to keep them presentable to the public and pursuant thereof immediately undertake the replacement of broken glass, interior and exterior repainting, the repair of damaged floors within the leased premises and other repairs. The Lessee shall not injure or deface the premises nor the building except as hereinbefore and hereinafter otherwise provided. The Lessee further covenants and agrees to and with the Lessor that during the term, the leased premises and every part thereof, shall be kept and maintained by the Lessee in good repair and condition and in conformity with all the requirements of the law, more particularly the Fire and Building Codes and the Lessee further agrees that the Lessor shall be kept harmless and indemnified at all times against any loss, damages, costs or expenses by reason of the failure so to do in any respect, or by reason of any accident, loss or damage resulting to person or property by reason of any use which may be made of the premises or by reason of the collapse or destruction of the building by reason of any act or thing whatsoever occurring or done upon or about the premises, without the written consent of the Lessor.

15.)

Separate Insurance On Premise And Goods The Lessee shall procure and carry insurance from an acceptable insurance company for the demised premises and all goods, commodities and items on sale on his stall at all times against fire and the perils covered by the extended

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coverage, with vandalism, malicious mischief, in an amount of at least equal to the replacement cost. The Lessee shall furnish to the Lessor certificates or duplicates of the insurance policies herein required.

16.)

Examination And Inspection Of Premises The Lessee hereby grant the Lessor or his duly authorized representative, upon proper identification, all the rights to enter into the leased premises at any given time within the reasonable hour, for the purpose of inspecting and examining the aforementioned leased premises and determining whether all the terms, agreements, covenants and conditions herein contained are being complied by the Lessee.

17.)

Discontinuance And Delay In Business Operation If the Lessee shall fail, for any reason, to so conduct business in the demised premises, then it agrees to pay the Lessor the sum equivalent to P20, Phiippine Currency, for every square meter of the leased premises per day. In case of delay in the commencement of the day-to-day business operations of the business establishments, then the Lessee shall be liable to pay the Lessor the amount of P20 per square meter per day.

18.)

Effects Of Breach Of Contract Failure of the Lessee for any reason whatsoever to pay the stipulated rentals on due date or to comply with the other terms and conditions of this contract shall automatically terminate

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the lease agreement and shall entitle the Lessor to recover full possession of the leased premises, without the necessity of any demand, together with all, the rentals in arrears, plus the corresponding interests and damages in relation thereto.

19.)

Legal Disputes Any and all disputes arising out of or relative to the above paragraphs shall be exclusively cognizable by the appropriate courts Balanga City to the exclusion of any other courts, and the guilty party shall be assessed an annual liquidated damage equivalent to forty eight (48%) percent of the actual amount due representing interests and other damages.

20.)

Attorneys Fees Should the Lessee fails or defaults in the performance of any of the foregoing covenants, condition and stipulations, and such failure or default is referred to the lawyer for proper enforcement, the Lessee shall be assessed an amount equivalent to fifteen (15%) percent of the total obligation or the sum of Three Thousand Pesos (P3,000.00) whichever is higher, as and by way of attorneys fees. Provided, however, that the Lessee shall pay the sum equivalent to twenty five (25 %) percent of the total obligation or the amount of Ten Thousand Pesos (P10,000.00) whichever is higher, should the matter be brought before the appropriate judicial or quasi-judicial body for enforcement, plus the actual litigation expenses.

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MANAGEMENT TEAM

Bataan Leisure Mall will be managed by the five incorporators themselves. They are all highly-motivated students of graduate studies in business management and entrepreneurial-driven professionals. The summary of their qualifications include but not limited to the following: a veteran in personnel management and customer service; a Certified Public Accountant and Financial analyst; an experienced manager and a banker; a government employee with an extensive background in office management and public service; and an experienced member of mall department store management team.

FUNCTIONS OF THE MEMBERS OF THE ORGANIZATION POSITION TITLE: DUTIES AND FUNCTION: 1. Responsible for all the minutes of the meeting. 2. Responsible for dissemination of all necessary information needed all through out the network authority covered by the president. 3. Responsible for the day-to-day operations of the corporation. 4. Hires and supervises any paid office staff, coordinates all volunteer office workers, and routinely handles unusual problems under difficult circumstances in what is sometimes an unsettled environment. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. 5. 6. Female, single, at least 24 years old Graduate of any 4-year business course With at least 3 years experience in this profession Can work under pressure under minimum supervision Computer literate With pleasing personality Executive Secretary

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BATAAN LEISURE MALL, INCORPORATED

ORGANIZATIONAL CHART

Board of Directors

President

Executive Secretary

Administrative Manager

Marketing Manager

Mall Operations Manager

Maintenance Manager
Technical Staff

Accountant

HRD Staff

Mall Marketing Officer

Customer Service Staff

Utility Workers

Clerk Mall Marketing Assistant

Cashier

Security Staff

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POSITION TITLE: DUTIES AND FUNCTION:

HRD Staff

1. Answers routine inquiries and performs public contact duties that require knowledge of established departmental procedures and familiarity with operations and programs within the department. 2. Composes routine correspondence such as register information, form letters, or human resource / payroll forms which requires knowledge of established departmental procedure. 3. Files documents in departmental files such as applicant and employee files, or audit files. 4. Performs queries, maintenance and updates to automated systems regarding employee such as appointments, changes, deductions, taxes or benefits. 5. Schedules various activities such as orientation for new employees, training and development, exams and testing, payroll processing and benefits programs. 6. Performs other related duties as assigned. 7. Responsible for building a proper and healthy HR environment. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. Male or Female, single, at least 24 years old 2. Graduate of Psychology 3. With 3 years experience in human resource management and personnel relations administration. 4. With thorough knowledge of all relevant HRD and personnel functions and with exposure to HR function. 5. With excellent communication skills 6. Computer literate

POSITION TITLE: DUTIES AND FUNCTION:

Accountant/Accounting Clerk/Cashier

1. Responsible for the preparation of pertinent financial documents. 2. Prepares payroll for the company employees. 3. Responsible for depositing the sales revenues from operations and withdrawing cash from the bank provided these transactions are supported by pertinent documents. 4. Prepares the financial report of the company. 5. Receives proceeds from rental fee.

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MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. 5. 6. 7. Male or female, at least 21-25 years of age Single BSA graduate with at least 1 -3 year relevant experience. Preferably CPA (for accountant position) Computer literate With excellent communication skills Can be trusted and willing to work overtime. Mall Marketing Officer

POSITION TITLE: DUTIES AND FUNCTION:

1. Responsible for increasing leasehold and rent income collection with the tenants by giving them terms and easy payments and gives the company a cash realization of the company without any uncollectible accounts. 2. In-charge in attracting more tenants to establish business in Bataan Leisure Mall. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. 5. Male or Female, 23 25 years old Graduate of any 4 year business course preferably Marketing With at least 2 3 years experience in this profession Willing to do field work With pleasing personality Mall Marketing Assistant

POSITION TITLE: DUTIES AND FUNCTION:

1. Covers the strategic plans to attract customers to purchase or use the facilities that entitle them to a big discount or promo privileges and in turn the company of big sales. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. 5. Male or Female, single At least 22 years old Graduate of any 4 year business course preferably Marketing With pleasing personality Experience is needed

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POSITION TITLE: Customer Service Staff DUTIES AND FUNCTION: 1. In-charge in its relations to the customers on how will the company earn the customers trust and loyalty. 2. Entertain any complains, comments, suggestions and queries. 3. Communicates effectively with the customers. 4. Responsible for using multiple technologies such as telephone and internet. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. 5. Male or Female, single At least 21 years old Graduate of any 4-year course With good communication skills With pleasing personality Utility Worker

POSITION TITLE: DUTIES AND FUNCTION:

1. Responsible for keeping the environment sanitation and cleanliness within its assigned section of the project premises. 2. Do minor repairs on project facilities and equipment. 3. Perform other related tasks as maybe assigned by the highest governing body. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. Male, at least 21 years old At least high school graduate Hardworking and can be trusted Experience, not necessary

POSITION TITLE:

Security Staff

DUTIES AND FUNCTION: 1. Responsible for safekeeping of all the facilities of the business. 2. Responsible for the safety of the customers, personnel, owner and everyone involved in the business.

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3. Responsible in maintaining the safety and proper order of all vehicles inside the premises. 4. Mediate in troubles, dispute, quarrels that may happen during day- to- day operation. 5. Ascertain the safety of the life and belongings of everyone entering Bataan Leisure Mall. MINIMUM QUALIFICATIONS FOR THE POSITION: 1. 2. 3. 4. 5. 6. Male, at least 22 years old Courteous and can relate to customers With at least 2- year work experience in related field License and a bonafide member of a security agency With certification of good moral character from their Barangay Captain With pleasing personality

COMPENSATION PACKAGE 1. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Including: a. SSS benefits b. Pag-ibig benefits c. Philhealth benefits d. 13th month pay Position General Manager Executive Secretary Administration Manager Marketing Manager Operation Manager Technical Manager Accountant HRD Cashier Marketing Staff Customer Service Staff Maintenance Staff Utility Staff Security Staff Projected Monthly Salary Php 30,000 8,000 20,000 20,000 20,000 20,000 13,000 8,000 8,000 8,500 8,000 8,000 6,500 7,000

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RECRUITMENT PROCEDURE

POSTING THE NEED FOR EMPLOYEES

RECEIVING APPLICATION FORMS

GIVING WRITTEN EXAMINATION

CONDUCT PERSONAL INTERVIEW

RECOMMEND PHYSICAL EXAMINATION

NOTIFYING APPLICANTS FOR WORK

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TIMELINE

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ACTIVITIES DURING PRE-OPERATING PERIOD Activity # 1 Conception and Identification of the Project Persons Involved Activities Undertaken Proponents Examine the proposed business proposals of each proponent. Identify if the business proposal in competitive, practicable and feasible project to execute. Deciding upon the best project to establish.

Activity # 2 Preparation of the Project Study Persons Involved Activities Undertaken Proponents Further research interview and study with the type of business to be undertaken. Preparation of Project Feasibility Study with the consultancy firm. Discussing and Presentation of feasibility study to the proponents. Approval of Project Feasibility Study.

Activity # 3 Obtaining of Financing Persons Involved Activities Undertaken Activity # 4 Plant Site Acquisition Persons Involved Activities Undertaken Proponents / Architectural Specialist Determine the availability of climatic conditions and site accessibility. Examine the levelling of the land; Proponents Survey of possible sources of financing. Receipts of funds from financiers.

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construction of roads; installation of buildings and other infrastructures. Activity # 5 Engineering Specifications / Construction Contracts Persons Involved Activities Undertaken Proponents / Engineering consultants / contractor Negotiations for the construction of buildings and acquisition of the plant site and machinery have to be made. Determine the most acceptable proposal.

Activity # 6 Policy Formulation Persons Involved Activities Undertaken Proponents Elaborate the major policies of the firm. Define the objectives. Development of strategies and the long range plan in achieving objectives. Development of an organization which most efficiently carries out the companys strategic plan. Development of operating policies which is the burden of decison making to carry out the plan.

Activity # 7 Incorporation/ Legal Registration with: DTI, SEC, if applicable, Municipal / City Government / BIR / Other regulatory and registration offices Persons Involved Activities Undertaken Proponents / Govt regulatory boards Securing of pertinent registration forms. Complying with the requirements. Submission of the registration forms and requirements for the issuance of permits / licenses. Issuance of permits / licenses.

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Activity # 8 Building Construction Persons Involved Activities Undertaken Engineering consultants / Engineering staff of the project / contractor Reliability and lines of specialization of the engineering consultants / Engineering staff of the project/ contractor and complying with the terms of contracts with them.

Activity # 9 Determination and Hiring of Firms / Persons to Work in the Organization (Recruitment, Selection and placement) of Administrator / Instructors/ Workers Persons Involved Activities Undertaken Recruitment Process Selection Process Activity # 10 Negotiation or Contract with Prospective Tenants Persons Involved Activities Undertaken Proponents Negotiating with prospective tenants customers. Filing up of application from by applicants Screening of applicants through different tests. Interviewing the applicants Selecting the most qualified applicants Orientation process Training and development Proponents Job specification and identification of sources of applicants for vacant positions.

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Conducting seminars to discuss the functions and policies of the leisure mall. Activity # 11 Promotions and Trial Run Activities Undertaken

Proponents/ Employees Conducting the marketing programs/strategies to make people aware of the company and the various services they can avail of.

Activity #12 Start of Normal Operation Persons Involved Activities Undertaken Proponents / Officers / Employees Normal flow of operations accomplishments of activities. and

CRITICAL RISKS AND ASSUMPTIONS The foregoing list presents the various risks that the Bataan Leisure Mall may encounter during its normal business operations. 1. Economic situation which affect disposable income of customers. 2. Unreliable forecasts. 3. Possibility that not all stalls will be occupied. 4. Expected low (off peak) months specifically during month of June to August 5. Presence of established and popular food chains which most children prefer.

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SOCIO-ECONOMIC BENEFITS The presence of Bataan Leisure Mall in Balanga City will create ripple effects on the entrepreneurial-driven economy of Bataan province. It will encourage individuals to engage in business by availing of our lease contracts to operate their own leisure service activities. The company will help lessen the unemployment rate in Bataan by providing job opportunities during construction and operations of the leisure mall. It shall also participate and contribute to the local governments social and civic projects. By the taxes paid, the company will be able to share in the function of the state in raising income to defray the necessary expenses of the government. Finally, it will promote healthy lifestyle for the community ands will enhance the mental and physical well-being of individuals, making them better equipped in performing their respective duties, responsibilities and functions.

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FINANCIAL PLAN Bataan Leisure Mall Incorporated will commence operations on January 1, 2007. The total amount of investment required in the rationalization of the project is P40,000,000. The capital requirement includes organization and pre-operating cost, which is fully charged against the revenue of the initial year of operations; cost of fixed assets; initial working capital requirement and reasonable cash allowance. The project will be financed by issuing common stock amounting to P30,000,000 and issuing serial debt securities which amounts to P5,000,000. The advance rental and security deposit to be received during the pre-operating period will augment the deficiency. Based on the financial analysis, the financial ratios are mostly at rule of thumbs rates. The payback period, which pertains to the length of time it will take to recover the investment, is only about 7.03 years. In addition, the net present value is positive, P2,478,420.25. Finally, the internal rate of return of the project (13%) is higher than the cost of capital (lowest acceptable rate of return, which is 11.65% or rounded off to 12%. Thus, the project is deemed to be acceptable.

ASSUMPTIONS USED IN FINANCIAL PROJECTIONS: o The total mall area available to tenants is conservatively set at 40% of the 2,000 square meters total mall area. o For assumptions used in projecting revenue items, such as rates and bases, see Gross Revenues Schedule.

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o Lease contract requires payment of three months advance and three months deposit, the security deposit is non-refundable, thus charges as income on the year of collection. o Most of revenue items are assumed to increase by 20% on the second year of operations and 10% thereafter. o Most of the expenses are projected to increase by 5% each year. o Accrual of receivables is assumed equal to one month of the annual rent revenues. o Leisure service revenues are assumed on cash basis. o No increase in employees related expenses for simplicity of computations. o One month of SSS, PhilHealth, Pag-ibig and Withholding taxes are assumed intermitted at year end. o Straight-line method is used to compute for depreciation of depreciable fixed assets. o Income tax rate is 32%. o Income taxes are assumed paid on the following year of its provision. o Office supplies ending balance is estimated at 20% of the total supplies available for use. o Bank loan of P5,000,000 on 2007 and P500,000 on 2008 were obtained from LBC Bank at an interest rate of 14% per annum maturing annually starting December 31, 2007. o Dividends are assumed at P5 per share on 2008, P10 per share on 2009, P15 on 2010 and P20 per share on 2011.

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o A portion of Retained Earnings is allotted for expansion programs at the end of 2011. o Accounting for VAT and withholding taxes on rentals/leases are ignored to simplify computations.

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CONCLUSIONS AND RECOMMENDATION The plan is about establishing a leisure mall in Bataan that will provide varied recreational, amusement and leisure services to the customers. Before a company can proceed with the operations, it is important to know first the market, which it shall penetrate. As such, the companys proposed targets are residents of the province Bataan, From the market analysis, the proponents determined that there is indeed a demand for the service. People realized that they need time for relaxation to keep them healthy and fully productive. This means there is an ample demand that is not met by current providers. Hence, the company is in the best position to enter into the industry. The proponents carefully studied the operating know-how of the project from the construction of the structure, acquisition of equipment, purchases of supplies and other utilities to be utilized in the project. After discussing the advantages and advantages of each for of business organization, the proponents decided to operate under a stock form ownership. There is a proposed organizational structure that represents the duties and responsibilities of the management and employees as well as interrelationship of different department. The proponents likewise prepare specified personnel policies regarding selection, training, compensation and other fringe benefits to ensure job satisfaction of employees. The total fund needed to cover fixed assets, pre-operating expenses and initial working capital is P40,000,000. It will be financed by issuing stocks and obtaining loans from banks. The data gathered from the market and technical studies were then

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reflected in the projected financial statement. It was found out that the project could earn a satisfactory profit and a considerable return of investment. It was also noted that the payback period, net present value and internal rate of return of the project are all acceptable. Social and economic benefits that the project can contribute to the people, community and national government were also considered. After a thorough study, the proponents therefore conclude that the project is viable in terms of marketing, operational, management, financial and socio-economic aspect.

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APPENDICES

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