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CHAPTER I

THE PROBLEM AND ITS SETTING

Introduction

One of the most important things business owners must do is create stability. And one of

the other most important things business owners must do is be prepared to change. It is no wonder

that many business leaders find themselves caught in a conundrum. If stability is most important,

then how can they be prepared for change? And how can an ever-changing business be stable?

Business stability is frequently misunderstood. The most common measurement of

stability – positive cash flow – is not the only measure of stability. In fact, if the other important

aspects of business stability are not present, then positive cash flow will not be either. Business

stability is achieved when a business owner or operator has established superior management of

all of the processes of their business.

According to Eli Goldratt, the creator of Theory of Constraints, teaches that there is no

such thing as unlimited capacity. People know this, but still they try to run our businesses as if

there is unlimited capacity.

Theory of Constraints helps the business owner recognize that in a capacity-constrained

world there is always one change that needs to be made that is more important than all the others.

It is your primary ‘bottleneck,’ and if one can find it and eliminate it, one will drop more money

to the bottom line.

This study was conducted by the researchers to guarantee that, in business filed, people

are adapting to a changing world and changing market, while restoring stability after each effort.
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Theoretical Framework

CUSTOMERS’ DEMAND

CUSTOMERS’ NEEDS & WANTS

CUSTOMERS’
LEVEL OF CUSTOMERS’ CONVENIENCE
SATISFACTION
PROBLEMS ENCOUNTERED BY THE
CUSTOMERS

PRODUCTS’ QUALITY & AFFORDABILITY

BUSINESS
STABILITY

EMPLOYEES’ CONVENIENCE

EMPLOYEES’
REASONABLE SALARY
LEVEL OF
SATISFACTION LEADERSHIP OF THE MANAGEMENT

INCENTIVES OR REWARDS
For the past years, business stability has been misunderstood. The most common
PROBLEMS ENCOUNTERED BY THE
measurement of stability – positive cash flow – is not the only measure of stability. In fact, if the
EMPLOYEES
other important aspects of business stability are not present, then positive cash flow won’t be
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either. Business stability is achieved when a business owner or operator has established superior

management of all of the processes of their business.

Satisfaction is an overall psychological state that reflects the evaluation of a relationship

between the customer/consumer and a company-environment-product-service. Satisfaction

involves one of the following three psychological elements: cognitive (thinking/evaluation),

affective (emotional/feeling), and behavioral.

According to the National Business Research Institute Studies have shown that there is a

direct link between satisfied employees and happy customers, so it makes good business sense to

invest in discovering what your employees need to stay loyal and satisfied. This creates an

environment of positive, helpful people ready to bend over backwards for the customer. The use

of employee engagement surveys along with customer satisfaction surveys gives a great overall

picture of a company’s strengths and weaknesses and provides a blue print for developing a

strong culture of loyal employees and customers.

Conceptual Framework

This study intended to determine whether the exposure and usage to first-person shooter

games could affect the visual-spatial perception of Seventh Grade students of La Immaculada

Concepcion School. The conceptual framework illustrates this in the figure that follows:

INDEPENDENT DEPENDENT
VARIABLE VARIABLE

Exposure to First- Performance on

Person Shooter the Visual-Spatial
Video Games Skills Test
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Figure 1 – Conceptual Framework

The researchers considered the exposure of Seventh Grade students to first-person shooter

video games as the independent variable of the study. The lack or presence of exposure to FPS

games might affect the performance on the test to be given. This made the performance on the

visual-spatial skills test the dependent variable of the study.

Statement of the Problem

This study was undertaken to figure out the factors to be considered in determining

Customers' and Employees' Level Satisfaction using Ado's Panciteria and Romy & Marita's

Pancit Malabon as the medium of the study. Specifically this study will seek answers to the

following research questions:

Problem No. 1: What is the demographic profile of the respondents with respect to:

1.1 Age

1.2 Sex

1.3Occupation

Problem No. 2: What is the customers' level of satisfaction in:

2.1 Ado's Panciteria

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2.2 Romy and Marita's Pancit Malabon

Problem No. 3: What is the employees' level of satisfaction in:

3.1 Ado's Panciteria

3.2 Romy and Marita's Pancit Malabon

Problem No. 4: What are the problems encountered by the customers in:

4.1 Ado's Panciteria

4.2 Romy and Marita's Pancit Malabon

Problem No. 5: What are the problems encountered by the employees of:

5.1 Ado's Panciteria

5.2 Romy and Marita's Pancit Malabon

Problem No. 6: Is there a significant difference between the respondents' profile and their level

of Satisfaction on products and service in Ado's Panciteria and Romy & Marita's Pancit Malabon?

Hypothesis

There is no significant difference between the respondents' profile and their level of

satisfaction on products bought and service received in Ado's Panciteria and Romy & Marita's

Pancit Malabon.
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Scope and Limitation

The researchers gathered information through distributing, a researcher-made,

questionnaire for seventy-five Ado's & Romy's Panciteria Customers regardless of the Age, Sex

and Occupation, also for the other section of the research study, another form of questionnaire

were distributed on ten of the store (Ado's & Romy's Panciteria) employees regardless of the age

and sex.

Significance of the Study

For the Community

This study will impart knowledge for the aspiring business owners to be well grounded in

establishing and planning in starting up small business or entities. Factors that will be taken from

the results will allow them to have a better decision making and full understanding of what is

around in the world of business.

For the Students

At the stage of continuously learning and still trying to figure out certain things,

this study is important for students in order for them to have glimpse in the reality of the business

field. This study will help them gain, and at the same time, motivate them on what they’ll decide

for themselves in the future.

For the Future Researchers

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This study will help the future researchers in having guidelines, of what could the

contents may be, and help them improve the study of their own. And as time goes by, they may

also consider using different small stores as their medium of study, and could conduct a

comparative research furthermore.

Definition of Terms

Ambiance – the character and atmosphere of a place

Conceptual Framework- an analytical tool with several variations and contexts. It is

used to make conceptual distinctions and organize ideas

Quota Sampling- is a non-probability sampling technique wherein the assembled sample

has the same proportions of individuals as the entire population.

Chi-Square Statistics- is commonly used for testing relationships between categorical

variables.

Panciteria- refers to a firm that mainly promotes “pancit”, a Filipino cuisine as their

main product

Stability - ability of a substance to remain unchanged over time under stated or

reasonably expected conditions.

SWOT Analysis- is a structured planning method that evaluates those four elements of

an organization, project or business venture

Theoretical Framework- consists of concepts and, together with their definitions and

reference to relevant scholarly literature, existing theory that is used for your particular

study.
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CHAPTER II

REVIEW OF LITERATURE AND STUDIES

LOCAL LITERATURE

According to Costa, business experience was a factor in the success of small firms.

Another study by Costa, indicated that strategic planning contributes to long-running success for

businesses. Other factors for success include quality, customer focus, innovative marketing

practices, flexibility and employee empowerment (Cruz L). The study of Santos and Reyes

(1991) aimed to define several tools for small business success.

These included good management techniques, such as appropriate operating strategies,

leadership and time management. Other tools were good financial management and pricing

strategies, motivational strategies for employees, and ensuring only those employees with ability

are hired. (Costa et al.)

Based on the study of Lopez and Delfin the researchers stated that "Success in business is

defined in terms of rate of return on sales, and age or longevity of the firm" (p. 42). Cuba, Felipe,

and Antonio and Luz and Lito also found that sales, profit, and longevity were important to

success. Bagdad and Sotto noted that high quality services or production was the key to success
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for firms and was directly related to effective management and planning, which relied upon

effective management decisions.

The study of Tanyag based from the book, "There is no generally accepted list of

variables distinguishing business success from failure ..."(p.10). The two most commonly stated

variables, however, that seem to make the difference are capital and management experience.

Based on the study of Aquino, he found that management experience may be a significant

factor in achieving success or successful performance in the small business environment. It stated

that "would-be business owners should be concerned to gain related industry, management, and

start-up experience... regardless of the type of industry in which they plan to operate" (p.86).

It was also noted, however, that while experience was a significant factor, it could vary

by industry in importance. This would support Cochran, who suggested that research for specific

industries in specific regions might prove more useful than national studies. This study was

referring to research regarding failures of small businesses; however, this may apply to successes

also.

Hand, Sobrano, and Hernandez discussed variables thought to be related to business

performance, such as characteristics of the entrepreneur (age, education, experience, willingness

to work, and ability to deal with customers and employees). Also discussed were the planning

abilities of the entrepreneur

Based on the study of Corpuz and Cruz, the researchers indicated that key success

factors were innovation, creativity, and managerial competence, which are characteristics found

in owners/entrepreneurs. Agno and Bello (1988) found that success factors are a part of an

organization's general environment, task environment, or characteristics of the business owner.

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Delgado, Dela Cruz, and Lopez looked at demographic factors, such as age, gender, and

race, and found that older, non minority; male entrepreneurs with four or more years of college

were usually associated with successful firms. A study by Batas and Noble confirmed that the age

and size of the firm had an impact upon survival.

The older the firm, the more likely it was to remain in business, and the larger the firm,

the more likely it was to be successful. Burgos and Fernando also pointed out that statistics have

shown that the longer a small business has been in operation, the better the chance that it will stay

in business. Success breeds success. Montes stated that small business owners must be able to

define the required strategies to find success as they continue to change within their

organizations. Castro explored the impact that planning has on the survival or success of firms.

Pre-planning was specifically investigated using three environmental conditions, which

was uncertainty, munificence, and industry maturity. He also investigated two founding

conditions, knowledge and capital. Findings included a negative relationship between uncertainty

and the survival of new businesses. Munificence (abundance of demand) was positively related to

survival, while industry maturity had mixed effects on the degree of planning and survival. Pre-

existing founder knowledge was found to be positively related to survival, while capital reduced

incentives to plan and, thus, was likely to negatively impact planning.

According to Batas conducted a study of survival rates among franchise and independent

small firms, and found that for the period 1984- 1987, the survival rate was much higher for

independent firms, as opposed to franchise businesses. The study also stated that while existing

studies identifying traits leading to long-term success of small businesses are not incorrect, small

firms should not enter markets that are saturated; which would lead to the assumption that a

knowledge of the market is most important.

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In 1990, Batas indicated that a firm's likelihood for success was increased if owners were

educated, and if an adequate resource investment was made at start-up. In a study by Lopez and

Calma, it was noted that successful firms used better professional advisors than did unsuccessful

ones, and it made a significant difference if their parents owned a business. However, the authors

were unable to find a reliable set of variables to firmly distinguish success from failure. Variables

used in the study included capital, recordkeeping and financial control, industry experience,

planning, professional advisors, education, staffing, product/service timing, economic timing,

age, partners, parents, minority owners, and marketing. Various other studies have used one or

several of these to identify critical success factors.

LOCAL STUDIES

The improving economy was one factor in the high level of satisfaction, since employers

have been more willing and able to boost salaries, benefits and perks for their workers.

Additionally, as the labor market stabilized, job seekers took advantage of new opportunities for

positions that best fit their skills and interests.

According to Viktor Cabuenas (2015) Filipino employees are starting to become less

satisfied with their jobs. They longer they stay in a company and higher they move up the

corporate ladder, they tend to become dissatisfied with their jobs.

Yoda Buyco (2014) stated that fresh graduates posted the highest satisfaction rating (79

percent), followed by junior executives (70 percent) and supervisors (66 percent) by the result of

jobstreet survey.
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Phillip Gioca (2017) exclaimed that As time more and more Filipinos are looking for

career development.they want to improve to their chosen fields, but lack of career development

and training opportunities in their current companies seem to hold them back. The survey

findings of jobstreet survey (2015) noted that, those who were less than a year into their jobs

registered the highest satisfaction rating (75 percent), followed by those with a tenure of between

one and three years (72 percent), and between three and five years (65 percent). Those with more

than 5 years into their jobs posted the lowest satisfaction rate at 62 percent.

The survey findings of jobstreet survey (2015) noted that, those who were less than a year

into their jobs registered the highest satisfaction rating (75 percent), followed by those with a

tenure of between one and three years (72 percent), and between three and five years (65

percent). Those with more than 5 years into their jobs, posted the lowest satisfaction rate at 62

percent.

Based on the study of Magpantay (2014) listening to the customers must became

everyone’s business with some competitors moving faster, the race will go to those who listen

(and respond) most intently

For the employees satisfaction the managers and the company business itself should

determine subordinates needs by observing their actions and that manages can predict

subordinates actions by becoming aware of their needs.

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FOREIGN LITERATURE

According to Lu, H., Barriball, et al. (2012) “that the pleasurable emotional state

resulting from the appraisal of one’s job as achieving or facilitating the achievement of one’s job

values.”, and “the extent to which people like (satisfaction or dislike) Dissatisfaction their jobs”.

Judge and Church (2000) pointed out the job satisfaction was the most widely researched

job attitude and among the most extensively researched subjects in industrial/ organizational

psychology.

Jex (2002) exclaimed tend to evaluate their work experiences based on feelings of

satisfaction or dissatisfaction regarding their job, as well as the organization in which they work.

Based on the study of Festinger (1954) social comparison theory, Jex (2002) explains that

during social information processing, employees look to co-workers to make sense of and

develop attitudes about their work environment. In other words, if employees find their co-

workers positive and satisfied, then they will most like be satisfied; however, if their co-workers

are negative and dissatisfied then the employee will most likely become dissatisfied. New

hires may become “tainted during the socialization process if placed around employees who are

dissatisfied.
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Weiss and Shaw (2009) conducted a study that required subjects to view a training video

where assembly-line workers either made positive or negative comments regarding their jobs.

The subjects who viewed the video were then given the opportunity to perform the job. The study

found that the subjects who were shown the positive video enjoyed performing the job tasks more

than the subjects who viewed the negative tape.

Linda Rey (2008) stated that the employees like their co-workers and find commonalities

among their peers and supervisors, they tend to be more satisfied at work.

According to Richard Harmer (2006) of Australian Catholic University School of

Psychology. when employees connect with co-workers and develop personal relationship they

usually are happier at work. Overall job satisfaction also correlates with how well employees get

along with their direct supervisors. Hiring managers and small business owners should look for

employees with similar backgrounds and taste as their current staff, and hire those who’ll easily

fit into the current company culture.

FOREIGN STUDIES

In 2015, 71% of small business owners of companies with fewer than 100 employees

said new technologies would offer a bigger return on investment than new employees.
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In 2015, 65% of small business owners of companies with fewer than 100 employees

only one started business. 75% of business travellers charge their devices in the public restroom,

gas station, and waiting room.

Only 53% of small businesses use social media. 25% of small business do more than half

their work on the go with mobile devices and tablets. Consumers are 43% more likely to read

email newsletters that include links to video. 55% of people have stopped shopping or using the

services of at least one company due to poor customer service in the past year. Four times as

many consumers would rather watch a video about a product than read about it. Nearly one third

of consumers would rather clean a toilet than talk to customer service. Only 25% of small

businesses use online advertising.

64% of business owners pan to shift ownership within the next 10 years. Meanwhile,

73% of family business plan for this ownership transfer in place.

19% of small businesses increase their jobs in the past 12 months. 11% percent reported a

decrease. Without a management experience, 63% of millennials, 49% of generation X, and 46%

of baby boomers started business. In 2014, 50% of all small businesses have been a victim of a

cyber attack. The average amount stolen was $19,948. 41% of tech companies look external

sources for innovative sources innovative ideas then 34% only look internally.

SYNTHESIS OF THE REVIEWED LITERATURE AND STUDIES

These materials gave emphasis to the employee and customer satisfaction. How

researchers and psychologist defined this level of satisfaction; what was the importance of these
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reasons? Why customer satisfaction was important to know about? Why those customers were

unhappy?, how many of them were satisfied and not?, Did companies give their employee the

right to show how skilled they are?, and Were they aware that their some employees were not

satisfied?. There is significant relationship between the problems encountered by those employees

and customers’ satisfaction.

That customer’s satisfaction gives an important role to the companies to ensure that those

products that they release or offered to the customers met the expectation of a customer. As a

result, customer satisfaction plays an important role within a business. Not only is it the leading

indicator to measure customer loyalty, identify unhappy customers, reduce movements and

increase revenue; it is also a key point of differentiation that helps one to attract new customers in

competitive business environment. Satisfaction plays a significant role on how much revenue a

customer generates for one’s business.

Different surveys would say that some Filipino employees were not satisfied on what job

they have. They demand for more in terms of their contribution in the company and opportunities

that can help them. There are some things that any employee desires aside from the salary and

benefits from the company, their role in the job like their purpose, how the company gives them

to show how skilled they are, the learning and career growth and relationship with colleagues and

superior.
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CHAPTER III

METHODOLOGY

Research Method

The type of research method applied in this research was cross-sectional study. In cross-

sectional studies, there is the observation of a defined population at a single point in time or time

interval. Exposure and outcome are determined simultaneously. This study design suited the

research because it is cheap and easy to administer. Given the limited resources and time, the

researchers would be able to produce a credible outcome adapting this study design.

Sample and Sampling Technique

Quota Sampling is a sampling method of gathering representative data from a group. As

opposed to random sampling. The sampling requires that representative individuals are chosen

out of a specific subgroup. Quota sampling is a non-probability sample technique wherein the

assembled sample has the same proportions of individuals as the entire population with respect

and characteristics three or focus phenomenon. In addition to this, the researcher must make sure

that the composition of the final sample to be used in the study needs the research’s quota criteria.
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The first step in non-probability quota sampling is to divide the population into exclusive

subgroups.

The subgroup characteristics or variables of the study, the researcher divides the entire

population into class level, intersected with gender and socioeconomic status, then the researcher

takes note of the proportions of these subgroups in the entire population and then samples of each

subgroup accordingly. The researchers choose quota samples because it allows the researchers to

sample a subgroup that is a great interest to the study. Quota sampling also allows the researchers

to observe relationships between subgroups.

RESEARCH INSTRUMENT

A survey questionnaire was used as the main tool in data gathering. The questionnaire

was designed by the researchers. It is divided into two main sections: the profile of the respondent

and the survey questionnaire proper. The profile contains socio-demographic characteristics of

the respondents such as age, gender, and their occupation.

DATA- GATHERING PROCEDURE

Through the use of the questionnaire, data were gathered from the 75 customers (each)

upon the two stores as well as 10 employees per store. A survey questionnaires were distributed

from the selected respondents during the distribution period.

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STATISTICAL TREATMENT OF DATA

In the analysis of the data collected, the following statistical techniques and procedures

were used. This method determines the distribution of the subject according to the frequency of

responses on the problems that were presented in this study.

1. Weighted Mean

(∑𝑓𝑤)
𝑥̅ =
𝑁

Where: 𝑥̅ = Weighted Mean

fw = Sum of the products of the frequency and the unit weight

∑ = Summation

N = Total number of Respondents

2. Percentage

Questionnaires were tallied and computations were facilitated through the use of the table

of frequency and percentage. The formula will be:

𝑛
P =( )x100
𝑁

Where: P= percentage

n= Number of respondents

N=Total number of respondents

100 = Constant

The items were verbally interpreted using a 5-point Likert Scale method as the criterion that

served as the basis for interpretation of data. The weighted mean values and verbal interpretation

are:
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Likert Scale
Numerical Scale Range Verbal Interpretation
5 4.50-5.00 Very Satisfied
4 3.50-4.49 Satisfied
3 2.50-3.49 Partly Satisfied
2 1.50-2.49 Unsatisfied
1 1.00-1.49 Very Unsatisfied

1. Chi -Square

A chi square is a method in statistics that calculates the difference from observed and

expected data values. The total number of each row and column were multiplied to the total

number to product you gather from multiplying the number of respondents and number of your

statements. And after that you will also compute for the observed and expected data value:

X2 = ∑ (O-E)2

E
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