Enterprise Study of Specialty Pastry Product Manufacturers in Lucban, Quezon

Date

12-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Normito R. Zapata, Jr.

Committee Member

Arlene C. Gutierrez, Dia Noelle F. Velasco, Agnes T. Banzon, Dinah Pura T. Depositario

Abstract

This enterprise study of specialty pastry product manufacturers in Lucban, Quezon seeks to present the profile of specialty pastry product enterprises in Lucban, Quezon and those entrepreneurs engaged in the business.

There are a total of 11 pastry product manufacturers in Lucban, Quezon; all of them were considered as respondents in the study as they manufacture at least one of the following six pastries—apas, broas, camatchile, galletas, puto-seko, and romano—which are very popular in the municipality. Primary data regarding both the entrepreneurs and their respective enterprises were gathered through personal interviews and questionnaires. Two sets of questionnaires were used in the study: (1) a questionnaire to determine the profiles of both the entrepreneurs and their enterprises; and (2) Personal Entrepreneurial Competencies (PEC) questionnaire to identify the levels of key competencies possessed by the entrepreneurs. Furthermore, SWOT Analysis and Porter‘s Five Forces Model were used to analyze the status of the business environment and the key players in the industry, respectively.

Based on the data gathered, it was found that majority of the respondents were married females aged between 41 to 78 years old. Further, most of them were Roman Catholic. Although many were college graduates, majority of them finished degrees unrelated to either baking or business management. Many had not attended trainings and seminars related to baking and business management, as well. On the other hand, the enterprises owned by the entrepreneurs have already been in existence for quite some time already; the average length of existence of the enterprises was 38.09 years. All of them were solely-owned family businesses. Majority were small-scale enterprises located within the town proper. Although their distribution outlets are located within Lucban, many of their retailers come from other places, such as Batangas, Laguna, Manila, and even as far as Baguio City. On the contrary, only one of them was into exporting, specifically to the United States and Middle East. Finally, they also only use either direct-selling or dual distribution marketing channels (i.e, direct-selling and through retailers).

In order to have a better understanding about the respondents‘ entrepreneurial competencies both at the industry and enterprise levels, their PEC scores were analyzed. The mean scores obtained on each competency were categorized into weak (below 16.0) and strong (16.0 and above). The results revealed that the respondents were weak on half of the ten competencies and strong on the remaining half. Specifically, they were weakest when it came to seeking opportunities but strong when it came to seeking information. Furthermore, if the total PEC scores of each enterprise were considered, six of the entrepreneurs can be classified to having strong PEC level; specifically, the operator of Pecto‟s Bakery was considered the strongest. Meanwhile, the operators of Cudanin‟s Bakery and Deazeta‟s Bakery & Grocery proved to be the weakest.

With the booming tourism industry of Lucban, Quezon, the respondents capitalized on the number of local and international tourists, considering them as their main target market. Almost everyone relied mainly, if not exclusively, on word of mouth as a promotional medium. In order to maximize their store space, they also offered other Lucban-based products such as Lucban Longanisa, Pancit Habhab, lambanog, and kiping, among others.

In producing pastries, they commonly used their own residential homes as their production base. They did not have fixed production volume and mainly based their produce on the maintaining stocks of the store and orders for the particular week.

Meanwhile, it was found out that there was no clear organizational structure among the specialty pastry product manufacturers. They were into multi-tasking, even shifting positions from one to another and even relying on the help of other family members, especially during peak season. All of the employees working were formally-registered in DOLE and also got basic employee benefits such as SSS, PAG-IBIG, and PhilHealth. The amount and number of times their salaries and wages were given, on the other hand, differed based on the employee‘s position.

Although many of the respondents had their own bookkeepers, majority of them did not hire an accounting personnel. They only relied on their basic knowledge in recording transactions and organizing inflows and outflows of cash.

The industry was found to be affected by several environmental factors, including economic, technological, customer, competition, and political-legal factors. These included price volatility of raw materials; semi-mechanization of the production processes; presence of social media as a promotional medium; competition with Nagcarlan manufacturers and among the existing Lucban manufacturers within the industry; and presence of government programs and sanitation policies, respectively.

Some of the problems commonly encountered by the respondents in the industry were as follows: seasonality of demand, limited promotional medium, lack of knowledge in formal accounting, lack of working capital, and absence of an association. Thus, the researcher recommended that the specialty pastry product manufacturers: (1) form an association; (2) practice formal record-keeping; (3) attend trainings and seminars concerning the industry; (4) maximize the use of social media; (5) practice semi- mechanization of the processes; (6) study enterprise‘s ability to export; (7) explore possible partnerships with other food manufacturing businesses; and (8) make sure that the family members are very well knowledgeable about the business. Lastly, it was also recommended that government regulating agencies conduct a stricter sanitation and quality control regulations, and that the local government of Lucban, Quezon provides programs for specialty pastry product manufacturers.

Language

English

LC Subject

Pastry industry, Business enterprises

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 M34

Notes

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Document Type

Thesis

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