Chapter 1

INTRODUCTION

Rationale of the Study

Beauty has been one of the main concerns in history for many women in ages.

(Jayesh & Pradip, 2014, p. 52). The antecedent of the beauty salon can trace its roots

back to ancient Egypt, Greece, and Rome, wherein the first concept of hairstyling for

men and women was only attained by the wealthy. Since then, the concept of the beauty

salon has been constantly evolving and have had men and women become accustomed to

having their personal appearance taken care of in it throughout the years. The global

beauty business pervades the lives of men and women alike, influencing how we perceive

ourselves and what it is to be beautiful. The desire to beautify oneself is why beauty

services are set up.

For the majority of the population, beauty matters most, and so the beauty

industry provides and innovates its services to meet its customers' needs for several

decades. "Restore and Renew" is the beauty salon industry's policy, in which it not only

helps to restore and renew a person's appearance, but it also builds equidistant trust and

ravishing personality. Having time for one self for relaxation and enhancement of

personality have been prioritized as a basic and essential need of every person. The desire

of spiritual and physical therapy does not limit to rich and elite class of a nation, as it was

labeled in the ancient ages; but now accessible and affordable to every common person.

Therefore, the salon industry should be thoroughly studied and given more relevance

since it is considered as one of the most influential industries as it does not only capture a

certain number of people but also aggregates the whole economy of the world.

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Furthermore, the beauty salon market in its current global situation is entering an active

period of prosperity where market competition is exceptionally intense. The beauty salon

industry underwent a series of dynamic changes and experimentations before it is shaped

to become a widely demanded industry that is expected to reach 5.4 billion USD by 2023

(Mordor Intelligence, 2018), with the United States earning most revenue worldwide

(Statista, 2019). Growing consumer interest in professional hair care products, hairstyling

trends, marketing and promotional activities are the major factors in driving sales

(Mordor Intelligence, 2018).

According to an industry report conducted by IBIS World (2018), current trends

in personal beauty care have also led to an increased demand for ancillary services to

standard haircuts, such as hair change treatments, skincare services and others. As a

result, consumers have favored professional salon products and services, such as hair

coloring services, over less costly alternatives sold in pharmacies and supermarkets. In

national context, the beauty industry is in its prosperous state, as Filipinos want to look

good and trendy. According to Villanueva (2018), the Philippine beauty salon market is

expected to grow annually by 1.6% around the years of 2019-2023. In fact, according to

the Philippines’ Department of Labor and Employment (2017), barbers, hairdressers and

beauticians are in demand since the beauty and grooming industry is rapidly growing,

with the acceptance of under and non-college graduate employees. In Cebu setting, the

growing health and wellness industry and rapid expansion of middle-income class, is

giving more opportunities for foreign investors to thrive (Cacho, 2015); and while the

province is already catering a multi-racial clientele as a major tourism destination, Cebu’s

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salon industry in particular, does not place much emphasis on proper hygiene,

particularly on nail care (Dagooc, 2018).

As Cebu is positioning to be a world-class destination, complementary products

such as salon, and other beauty and wellness services should also be aligned with

sophistication and utmost refinement. Another challenge encountered by Cebu’s salon

industry is the enormous need for skilled beauty care workers who have the aptitude for

customer service and technical skills. According to Rose Institute of Cosmetology and

Pharmacy, most of the skilled workers in the industry are working abroad, and this limits

beauty salons and centers in the country from expanding their businesses. Furthermore,

the greatest challenge lies internally within the business more so than in the marketplace.

Various salon establishments encounter diverse challenges such as managing and

motivating staff, getting new and retaining existing clients, marketing, time management,

and selling retail. Specifically, the Cebu beauty salon industry is struggling with finding

employees who are motivated, consistent and committed to building the business.

Moreover, marketing strategies and management practices must also be improved to

contend to the heightening competition in the industry. This research intends to begin

bridging the gap of understanding of the management practices used by the business and

its role on the development and improvement of the salon industry in the local scene, and

to develop an intervention program, which can be immediately used and strategically

applied by salon businesses, based on the results of this study.

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 THE PROBLEM

Statement of the Problem

The study aims to assess the existing management practices in the salon industry, which

are located within Cebu City, in order to propose an intervention program by the

management.

Specifically, it seeks to:

1. Describe the company profile in terms of:

1.1 Type of Ownership

1.2 Number of Employees

1.3 Years of Operation

1.4 Annual Income

2. Assess the existing management practices in terms of:

2.1 Proper Licensing

2.1.1 General Licenses and Permits

2.1.2 Cosmetology Salon Licenses

2.1.3 Cosmetologist Licenses

2.2 Sanitation and Hazardous chemical compliance

2.2.1 Disinfecting

2.2.2 First Aid kit

2.2.3 Private Washroom

2.2.4 Proper Ventilation

2.2.5 Proper storage of chemical products

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 2.3 Labor Law Posters Displayed

2.3.1 Social Security System

2.3.2 Pag-ibig

2.3.3 Phil Health Benefit

2.3.4 Hours of Work

2.3.5 Rest Day

2.3.6 Holiday

3. Identify the challenges encountered by the management

3.1 Challenges

3.2 Course of action

4.Based on the findings, proposed management intervention.

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Significance of the Study

Society. The significance of the research to the society is that the research provides data

on how the salon industry would connect to the society’s preference in terms of salon

quality. The research shows as well how the business must consider the sanitation and the

satisfaction of the customers.

Salon Establishments. This study will guide establishment to contribute in the growth of

the country, wherein other salon businesses may apply the principles based on the data

and findings of the research as well in order to meet the standards, the customers demand,

most especially when there are a lot of salon businesses in the country. The

establishments will be able to improve its operational procedures, and through these

improvements the business will be more profitable

Customers. The customers would be more aware of the right quality a standard salon can

be. it is very important for customers to protect themselves from the unfair trade practices

of the traders and service providers. The study will help customers understand more

better about the salon industry.

Future researchers. This study will guide them in making their research. The idea

presented may be used as reference data in conducting new researches or in testing the

validity of other related findings. The study will also serve as their cross-reference.

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Scope and Limitation of the Study

This study is conducted to specifically gather data about the existing management

practices of the salon industry, specifically in Cebu City only. The main basis of this

study is management practices practiced by the chosen salon businesses of the

researchers. The subjects of this research are beauty salon businesses that are based in

Cebu City, who are questioned and investigated for the formulation of an intervention

program . Due to time constraint of the beauty salon businesses, the comprehensiveness

of data gathered is compromised. The researchers will only be able to grasp a small

sample population of 10 beauty salon businesses, which are chosen by the researchers.

Furthermore, the interview questions or questionnaire will only be succinct because of

information reservations of the business.

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Definition of Terms

Beauty Care - it plays a essential role that allows salon businesses to compete against
competitors through performing manicure, pedicure, hand spa, foot spa and etc.

Challenges - it refers to the conflicts that could possibly enter the business cycle and it
helps improve the business’ management quality and management services.

Cosmetology - it is the study of beauty treatment that is being focused in the research
papers.

Customer Loyalty - it is a vital key that is actually needed by the company to survive.

Customer Service - an act of providing a good service to the customers to ensure

customer loyalty and satisfaction.

Disinfection - it is important in every business to disinfect all materials being used to

reduce the risk of spreading harmful diseases and viruses.

First Aid Kit - it is an important kit that allows you to respond immediately to sudden
wounds and unexpected injuries that might lead to harmful infection.

Government Regulations - it is required to comply all regulations from the government to

ensure business credibility and assurance to keep the business running legally.

Marketing - an objective discipline that involves the research, creation, pricing, testing,
and distribution of a product or service.

Proper Licensing - it is one of the most important factor to consider in putting up a

business especially in a salon industry. It is required to monitor assurance that the
business is viable.

Proper Ventilation - it is required in the business to ensure comfort and prevent air
pollutants from affecting health conditions.

Salon Industry - is considered as one of the most influential industries and aggregates
the whole economy of the world.

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Sanitation - it is one of the major aspects that should be considered primarily in a salon
industry to assure safe conditions and prevent harmful infection.

Technical Skills - this ability helps employees to accomplish work more efficiently and
allows to think critically upon challenges in the business.

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Organization of the Study

The study will have a total of five chapters. Each one directed to answering and

presenting findings and studies for the statement of the problem. The first chapter will

discuss the introduction of the study. Foremost, the Rationale will introduce current

issues and situation of the salon industry, in global, national, and local level, and the

current issue is chosen to be the subject to be investigated by the study. Additionally, the

problems that have been chosen to be studied will also be thoroughly elaborated through

it being broken down in Statement of the Problem, Significance of the Study, and Scope

and Limitations of the study. Furthermore, the terms used in the study will be defined in

the Definition of Terms section.

In continuation, the second chapter will discuss about the Theoretical Background

that will be comprised of the Review of Related Literature that will support the

investigation of the study with actual studies and published works by authors in related

field at its current versions. In addition to that, the Theoretical Background will show the

interconnectedness of the theories already written about that is relevant to the study and

Conceptual Framework will connect all the connections between the ideal variables of the

salon industry and the information to be gathered as stated in the Statement of the

Problem in order to produce the final output, which is a management intervention

program to be used by the industry studied.

The third chapter will discuss about the Research Methodology of where and how

the study will be conducted and tested through statistical testing or in-depth interview.

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Specifically, Research Environment will describe where the study and testing will be

conducted; Research respondents will describe the group of individuals that are

relevantly subjected to the study’s testing; Research Instruments will describe the survey

questionnaire and interview guide that will be used to extract information for the study.

Research Procedures on the other hand will enumerate and explain the step-by-step

process of how to extract information and how to calculate the processed data for the

study. Chapter four will show the Presentation, Analysis, and Interpretation of Data. This

section will present the data gathered through the survey questionnaires, results and

analysis, and its relation with the theories found in the third chapter. Lastly, the fifth

chapter will discuss about the summary, conclusion, and recommendation of the study. It

will first summarize the whole findings and interpretation; the conclusion will serve as a

formal closing statement to sum up all the information collected from the studied.

Finally, the recommendation of the study will suggest actions that should be done by the

business being studied and the future people who will benefit from the study.

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 Chapter 2

THEORETICAL BACKGROUND

Review of Related Literature

Research works, related studies, journal articles, and dissertations that give

knowledge, insights, and comprehension to the main concepts of this study, which are

existing management practices, particularly on compliance of government regulations,

management of employees, company direction, and marketing strategies used, are

reviewed and examined in order to establish a theoretical foundation. Moreover, this

review would also examine the different challenges, faced by the industry, as well as its

course of action. This review of numerous related literatures is subdivided into two

sections, management practices and the challenges encountered by the management. In

addition, it will be arranged in a thematic manner wherein the sub-variables of the

aforementioned are identified in order to scrutinize and organize the related studies

properly.

Section I: Management Practices

Compliance of Government Regulations

Starting a business will require the compliance of government regulations to keep

the business running. In a beauty salon industry, it also has similar and different rules and

regulations to other business industry. According to Wicks (2019), choosing a salon type,

business licensing requirement, cosmetology license requirement, certifications and

inspections, and permits and tax payment are the regulations and rules when opening a

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salon. Following this rules and regulations can help the business keep on running the

business legally to earn the profit.

Beauty salons are well known for their way of enhancing the beauty of a customer

and that’s why the customers trust towards the business is important. According to David

(2018), licensing, sanitation, safety and records are the regulations of hair salon. By this

rules and regulations, the business must be able to apply this on a daily basis to not harm

any customers and break the law of the government. Like any other businesses, a

business must have the proper licensing and must follow the law of labor in the

Philippines. When having beauty salon, it’s for the best to double the cleanliness of the

business. According to Durden (2018), proper cleaning and storing of supplies and

equipment, since people come and go to cater their beauty. In this way, the beauty salon

industry can prevent problems involving with the customer and the possibility of ruining

the business’s reputation

Management of Employees

Taking good care of the employees is an important task for the managers and

business owners in the salon industry. According to Harter and Adkins (2016), great

managers have the ability to motivate and build genuine relationships with employees

and great managers realize that every person they manage is different. Employees have to

face different challenges in their own individual lives that these individual problems they

face affect their working environment. That is why as a good manager, one must know

how to deal with these employees and understand their situation. Additionally, according

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to Harter and Adkins (2016) every individual has its own successes and challenges at

work and beyond, which is why it is important to have managers that can handle the

employees with care and understanding. Understanding the employees’ situation is

important but owners and managers must also know how to balance their relationship

with their employees or co-workers. “One must get close but not too close” as the saying

goes by. According to Heiman (2019), to become a successful salon manager, one must

know how to balance between being professional and being softhearted with subordinates

in the workplace.

The business workforce, which is composed of the workers or employees, is one

of its key assets. Managing the employees, is critical not only to the basic operation of the

business, but also for its ongoing success. Therefore, salon owners must establish rules in

order for the employees to follow and make the workplace workable and organized.

According to Grissler (2014), employees need rules in order for the business to operate

smoothly, building relationships and making a harmonious working environment to all.

Another important thing is that the employees hired should be qualified for the job and

that their skills should match for the job that they applied for since hiring the right

employees is the central factor for the business to achieve success (MTEC, 2017).

Setting of Company’s Direction

Businesses needs to have a plan that will make the company successful in the

future and it will serve as a guide towards leading its growth, carefully planning the

business is important in ensuring that the company will drive to the right path. According

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Brennan (2017), It’s not just a statement about how to make clients feel good and look

great either. There are already businesses in your area taking care of that. Instead, it’s

crucial that you identify what it is that will make your business unique. Make it stand out

from the rest of your competitors. In contrast, setting the business location, target

customers and provide an excellent customer service will be a wise choice in making the

business stand out from the others. In defining success, it must be measurable and

quantifiable. In increased profitability as a long-term goal, use positive cash-flow,

increased revenue, client retention and media mention as measurable signs of growth.

Tracking these progress barometers can make any salon more successful. According to

Ehlers and Lazenby (2011), Businesses need to know its weaknesses, internally and

externally; about the environment it is exposed to for it overcome the challenges and can

obtain the important information needed to come up for a solution to the problems faced.

Based on studies, businesses sometimes don’t really carefully study their business and

rely on their “gut feeling” or rely on their experiences which causes some problems to be

overlooked in management, in creating emotive, and right decisions which may lead to

the unsuccessful business.

Marketing of Product

According to Edmunds (2019), Marketing is an objective discipline that involves

the research, creation, pricing, testing, and distribution of a product or service. In

addition, marketing involves analyzing the competition by researching their pricing,

products, where they sell, and age, race, gender and other characteristics of their

customers. On the other hand, advertising is one of the forms in promotion and a way of

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communication in which its purpose is to inform potential customers about products and

services, and how to obtain them. Furthermore, advertising is just one aspect of

marketing strategy, referring to a paid, public, persuasive message by an identified

sponsor. According to Diffen (2014), the focus of advertising is to make existing or

potential new customers aware of an individual product or service, while the focus of

marketing encompasses the overall picture to promote, distribute, and price products and

services.

There are two different ways in promoting a product or a service – print and

graphic arts and electronic media. Through those two ways in promoting a product or

service, there are a different classification that belongs to them in which it has a pro/s and

con/s. Under the print and graphic arts are the following: poster, brochure, and magazine.

According to OLWA (2018), one of its pros is that a poster will have a long-lasting time

in exposing that will lead to many audiences compared to a presentation, which has a

limited time. On the other hand, one of its cons is that it is difficult to make corrections

and adaptations when it is already printed (OLWA, 2018). The second classification that

belongs to the print and graphic arts is brochure wherein according to Barry (2017), It

can sometimes serve as an eye-catching form of marketing that has a very cost effective

form of advertising but, can be seen as cheap, dated and out of touch. In addition to the

print and graphic arts classification, is the magazine. One of its pros is the pass-on

readership, which means people may pass magazines on to their friends and family which

will increase exposure of your advert however, the cons of it, is the high cost of testing,

in which color artwork can be more expensive, so small tests are often uneconomical

(Emerald Frog Marketing, 2015). On the other hand, another way of promoting a product

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or service is through electronic media. There are three different classifications, which are

televisions, mobile phones, and social media. One of the advantages of televisions is that

it allows you to convey your message with sights, sound, and motion, which can give

your business, product, or service instant credibility, but it has a disadvantage where it

has a difficulty in making a change of your advertisement (All Business, 2019).

According to The Brandon Agency (2019), one of the cons in mobile phones is that the

platforms are too diverse where mobile devices do not have any particular standard, as

compared to PCs and laptops. Since, mobile phones come in many shapes and sizes, so

screen size is never constant. Also, mobile platforms use different operating systems and

browsers but, with that cons, comes its pros, which is instantaneous, resulting in people

always carrying their phones. According to Gordon (2005), there are five best ways to

win customers. (1) Find a way to differentiate – identify the unique benefits you provide,

and make them the central focus of your marketing message. (2) Add value by bundling

services – increase the perceived value of what you offer and give your company a leg

up. You may even be able to raise your prices on higher-value offerings. (3) Market to

existing customers – To build sales, use direct marketing, including e-mail and direct

mail, to offer special promotions to your customer base throughout the year. (4) Win

more referrals – You must also create a group of marketing tools for your referral sources

to use with your prospective clients. (5) Raise your visibility – to reach potential

customers across multiple channels, consider expanding your advertising in search-

corridor media – where customers turn first when they’re ready to buy Gordon (2005).

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 Section II: Challenges of Management

Challenges Encountered

Managing a salon and its most difficult employees require handling situations

using direct and clear communication (Springer, 2016), It is extremely important to

ensure that small businesses not only survive, but also grow in management quality, so

that the lack of key management services could not limit the success of small businesses

(Batham, 2016). According to Ambrose (2018), one of the biggest challenges

encountered by salon business owners revolves around the staff. Managing and

motivating staff requires a huge exertion of effort, experience, and knowledge in order to

entice staff to achieve both their individual goals and the salon’s targets. Keeping

employees satisfied within their jobs, consistency of work from day-to-day basis, getting

staff to be comfortable with selling, avoiding confrontation when dealing with issues,

dealing with absenteeism as a result of holidays, sickness, pregnancy etc., and keeping

them motivated were among the main points as to why the biggest challenge that salon

owners and managers encounter revolves around the personnel (Professional Beauty

Association, 2014). On the other hand, another challenge that salon business owners face

is getting clients. Various companies use a wide range of tactics to attract customers to

their services. Among its tactics include products of technological innovations that has

enabled customers to exchange both positive and negative product and service

experiences (Qvist, 2016); and although social media and modern promotional strategies

may be used to enhance the business’ exposure in the market, it is still unsuccessful in

terms of bringing new clients to the salon. Additionally, retaining customers is as hard as

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earning one. A strong foundation in marketing possibly enables businesses to establish a

long-term relationship and impact on potential and existing customers (Gallo, 2014). The

common misconception in exerting effort to retaining clients is the mistake of justifying

prices to clients in comparison to cheaper competition (Kauppila, 2014). Many

establishments, in hopes of acquiring customer loyalty, use discounting but in all

actuality, it does not retain customers but solely practices customers to be accustomed to

paying for a less profitable price (Kauppila, 2014).

Management Courses of Action

Operational and strategic decision-making involved in designing, employing and

monitoring high-risk systems is affected by considering increasing uncertainty as a viable

option is shown for two examples: rule-making where the most appropriate rules are not

necessarily those that are most restrictive and thereby uncertainty-reducing, but rather

‘flexible rules’ that support adaptive action by providing degrees of freedom which

initially raise rather than reduce uncertainty for the decision-maker; and speaking up

which entails empowering people to voice concerns and doubts about a chosen course of

action in ways that allow to incorporate the added uncertainty into sounder decision-

making (Grote, 2015). Strategies can and do exist at various levels of the organization, it

is entirely conceivable and appropriate for the corporation to have a strategic plan, for a

business unit to have one too, and for a functional unit to have one. Strategic also means

“of great significance or import” and so strategic plans, at all levels, are intended to

address matters of great importance. For those concerned with the enterprise, strategic

issues, initiatives, and plans are those that affect the entire enterprise in important ways

19
(Nickols, 2016). The planning mode is generally superior to the entrepreneurial and

adaptive modes when the organization is fairly large, when knowledge is spread

throughout the organization, and when the organization has at least a moderate amount of

time to engage in strategic planning (Mecham, 2015).

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Theoretical Framework

Starting a business is difficult and challenging and to able to handle the pressure

can be askew. And problems occur without even knowing how it started. The statement

of the problems talks about how these problems can affect the well-being of the business.

It can affect the government regulation, the employees, the company’s direction and the

company’s way of marketing the product. According to (Wood, 2018), businesses must

comply with the government regulations to be able to run a business legally, and it

doesn’t matter what type of business it is and what type of industry the business is in.

Different business industry has different rules and regulation. Since, this research focuses

more on the beauty salon industry, it also has its own rules and regulations to follow.

Sanitation
and Labor Law
Proper Hazardous Posters
Licensing
Chemicals Displayed
Compliance

Figure 2.1 Theoretical Framework of the Study

Beauty Salon Rules and Regulations

To start a business, means having the accurate licenses needed to start a business

in the beauty salon industry. According to (Durden, 2018), health inspection certification

and certification of compliance with the beveryuilding code are business license that are

needed to any beauty salon and should be hung for the customers to see. In this way, the

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business is able to pay taxes, can be trusted by the customers, and operating the business

legally.

General Cosmetology
Cosmetologist
Licenses and Salon Licenses
Licenses
Permits Types

Figure 2.2 Theoretical Framework of the Study;

Beauty Salon Licenses Requirements

According to (Flanagan, 2017), opening a beauty salon do not differ from the

licensing requirement of other companies, but a license is required from a beautician or

cosmetologist. A beauty salon business must be able to comply these requirements to be

able to operate the business. Beauty salons are well known business industry that

involves skin, hair, nails or etc. interactions that uses chemicals and tools to enhance

beauty, which means maintaining the cleanliness in the working place is a must.

Proper
Private Proper storage of
Discenfecting First aid kit ventilation chemical
washroom
products

Figure 2.3 Theoretical Framework of the Study;

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 Sanitation and Hazardous Chemical Compliance

According to (Durden, 2018), it’s mandatory to properly clean and store

equipment since a lot of people come and go to a beauty salon business to cater their hair,

skin, nails and etc.

Like every other business, employees are important to maintain the flow of

business when the owner can’t handle it alone, which means labor is an essential part and

paying their wages. According to (Durden, 2018), by displaying the labor law posters is

by reassuring that the business is legal and to ensure the rights and safety of every

employee that is involved in the business. This can be shown to customers that the

business can be trusted and that everything that the business is doing not against the

government.

In the Philippines, there are also labors code that is applied to every business that

is established in the country. According to (Attorney of the Philippines, 2016) In addition

to wages and financial advantages, workers may also have questions about hours of labor,

day of rest and even holidays.

Hours of
Rest Day Holidays
Work
Figure 2.4 Theoretical of the Study;

Know the Basics of Philippine Labor Law

23
 Workers are only required to work at a maximum of 40 hours in a week and to

have 8 hours of labor in a day. And an addition, employees must have an overtime

payment when working overtime. From the quote “One of the first businesses to

implement this was the Ford Motor Company, in 1914, which not only cut the standard

work day to eight hours, but also doubled their worker’s pay in the process. To the shock

of many industries, this resulted in Ford’s productivity off of these same workers, but

with fewer hours, actually increasing significantly and Ford’s profit margins doubled

within two years. This encouraged other companies to adopt the shorter, eight hour work

day as a standard for their employees.” It does say a lot about the business and the

employees, at the end of the day, both the employee and the business are able to benefit

from the hours of labor the business applied. There is also a rest day that is considered to

be in a weekend and if the worker is working on a rest day, it is expected that the wage of

the worker has an additional percentage from the regular wage. There are two types of

holiday- special and regular holiday, and the employer also gives a holiday payment.

According to (Serran, 2016), It doesn’t matter that an employee is an expert at

what he/she does or a business owner desirous to ensure the safety of the staff, it is

recommended to understand the government’s laws, to avoid instances involving under-

compensated employment. Other than the labor law about the labor hour of an employee,

a business must also provide the mandatory government benefits and contributions for the

sake of the employees. These benefits are given to regular employees and it is deducted

from their salary.

24
 Social
Pag-IBIG PhilHealth
Security
Benefits Benefits
System

Figure 2.5 Theoretical Framework of the Study

List of Mandatory Employee Benefits in the Philippines:

Mandatory Government Benefits and Contributions

Conceptual Framework

INPUT PROCESS OUTPUT

COMPANY PROFILE

DATA GATHERING
THROUGH PROPOSE
INTERVIEWS AND MANAGEMENT
MANAGEMENT SURVEY INTERVENTION IN
PRACTICES QUESTIONNAIRE; CEBU CITY OF
STATISTICAL BEAUTY PARLOR
ANALYSIS AND SALON COMPANIES
RESULTS

CHALLENGES

Figure 2.6 Conceptual Framework of the Study

25
 The figure shown above explain the aspect of the five beauty parlor salon

companies in Cebu City was chosen, the various aspects are undertaken by the

researchers through the process of gathering data with the use of interviews and survey

questionnaire, the analysis of its results through statistical methods. the finding of the

study is to propose management intervention with in Cebu City of beauty parlor salon

companies.

26
 Chapter 3

RESEARCH METHODOLOGY

Research Environment

The Hair Shack

Figure 3.1 Map of The Hair Shack

27
 Arielle’s Salon

Figure 3.2 Map of Arielle’s Salon

VMS Salon

Figure 3.3 Map of VMS Salon

28
 Jeen’s Salon and Spa

Figure 3.4 Map of Jeen’s Salon and Spa

Trim ‘N’ Style

Figure 3.5 Map of Trim ‘N’ Style

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 This section focuses on the location or address of each chosen beauty salon

business and their business size. According to the table shown above, The Hairshack is

located at 2211 V. Rama, Cebu City. Arielle’s Salon is at 382-L Gonzales Comp. Escario

St, Cebu City. Jeen’s Salon & Spa is at 194 Junquera St. Cebu City, while Trim ‘N Style

is located atEmsu Dev’t Corp., Escario Cor. Osmeña Blvd. Capitol Cebu City. As for the

size of the business, All chosen beauty salon business were identified as small size since

it covers P50,000 to P100,000 as their capital.

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Research Respondents

Owners/Managers

This study has a total of five beauty salon businesses, which are situated in Cebu

province, specifically in Cebu City, as its respondents. The researchers believe that

having a sample size of five beauty salon owners and managers as respondents is

sufficient to represent the medium to large total population of salon businesses in the city.

The qualified respondents are beauty salon owners and managers with their

corresponding management practices used in running the business. The researchers

believe that these respondents would be able to provide sufficient information regarding

the salon industry in general as well as its management practices and challenges

encountered.

The respondents will be chosen through a non-probability sampling technique

called convenient sampling since the researchers would have to consider the accessibility

of information, time constraint, limited resources, as well as the convenience of these

beauty establishments, and its clients. Convenient sampling is a sampling method where

subjects are selected because of their convenient accessibility and distance to the

researcher. Furthermore, due to difficult circumstances of setting an appointment or

having direct contact to initiate an interview with managers or business owners of the

businesses, the researchers only had to conduct an interview with three female business

owners or managers. Nevertheless, all of the five chosen beauty salon establishments will

be answering the survey questionnaires.

31
Customers

The researchers have chosen twenty-five customers of which ten are male

customers and the remaining fifteen are women. Comprising the ten male respondents are

four middle-aged men, three teenagers and three senior citizens. On the other hand,

comprising the fifteen women are six middle-aged women, five teenagers, and four senior

citizens. The researchers have concluded and divided the number of respondents

according to age and its preference into which the number of customers at a certain age

goes to a beauty salon.

32
Research Instrument

In conducting the research, the following are the instruments used:

Questionnaire

this is the very common instrument that is being used by the researchers since

then. Questionnaire helps the researchers gather information not just only from their loyal

customers but also to the different people who love in going to different salons.

Furthermore, questionnaire is made up of different questions related to their topic (beauty

salons) and, through those questions stated that was answered by their respondents the

researchers could gather enough information.

In-depth Questionnaire

this is made of different types of questions that need to be asking to the 5 owners

from the different beauty salons and to their customers. Interview guide, from the name

itself guide which means it will help the researchers to conduct an interview in a proper

and systematic way. Since, they already have a guide questions that is needed for their

research purpose.

33
 BIBLIOGRAPHY

Pic. Jayesh, Savla Swati & Pradip, Manjrekar (2014). International Journal of

Scientific Research and Reviews: To study the Perception of Women as

Customers towards Beauty Service in Western Mumbai. Retrieved (date), from

Chiarelli, Jeff (2015). A history of beauticians. Retrieved February 13, 2019, from

https://www.ogleschool.edu/blog/a-history-of-beauticians/

Mordor Intelligence (2018). Salon Hair Care Market: Segmented by Distribution

Channel, and Geography ‚ Growth, Trends, and Forecast (2019 - 2024). Retrieved

February 13, 2019, from https://www.mordorintelligence.com/industry-reports/

salon-hair-care-market

Statista (2019). Hair Care. Retrieved February 12, 2019, from https://

www.statista.com/outlook/70040000/123/hair-care/philippi

Villanueva (2018). Success with Salons. Retrieved (date), from https://

www.entrepreneur.com.ph/franchising/success-with-salons

Cacho (2015). Beauty educator finds niche in Cebu. Retrieved (date), from https://

www.sunstar.com.ph/article/23910

34
Dagooc (2018). Lack of proper hygiene noted in Cebuʼs salons. Retrieved (date), from

https://www.philstar.com/the-freeman/cebu-business/2018/04/17/1806540/ lack-

proper-hygiene-noted-cebus-salons

Dean, D.H. (2016). Gender, ethnic identity and patronage likelihood for a unisex hair

salon. Retrieved February 12, 2019, from

Jeon, H. (2017). The effect of experiential marketing on customer satisfaction and revisit

intention of beauty salon franchise stores. Retrieved February 12, 2019

Grissler (2014). Maintaining a positive salon environment and keeping your employees

happy is a constant battle. Retrieve February 12, 2019, from

Howard, C. (2016). How to create a profitable salon without draining your bank account.

Retrieved February 12, 2019

Khahan Na-Nan, EkkasitSanamthong& MadohSulong (2015). Customer satisfaction: hair

and beauty salon business. Retrieved February 12, 2019, from

Pacheco, Z. & Reddy Y.V. (2016). Personal grooming. Retrieved February 12, 2019

35
 APPENDIX B – RESEARCH INSTRUMENT

Interview Guide

I. The Company Profile

1. What type of Business is this salon?

2. How many Employees do you have?

3. How long did the business operate in terms of years?

4. Is the business doing well in terms of revenues?

5. How much is your Annual Income?

II. Existing Management Practices

Proper Licensing

1. As a business owner, are you able to follow the rules and regulations in starting and

operating the business? And how are you able to do that?

2. Do you offer full service in the business? If yes, why? And if no, why?

3. How long did it take for the business to complete the general licenses and permits?

Sanitation and Hazardous chemicals Compliance

Disinfecting

1. What procedures do you apply in cleaning your salon equipment?

2. What substance do you use?

36
 3. How regularly do you clean your salon equipment?

4. Where do you throw your substance that you used in cleaning?

First Aid Kit

1. How many first air kit does your salon have?

2. What items or products is inside your first air kit?

3. How often do you check you first air kit supply?

4. How easily is your first aid kit accessible in times of use?

Private Washroom

1. How many private washrooms does your salon have?

2. How do you clean your washroom?

Proper Ventilation

1. How do you maintain your salon’s air quality?

2. What substance do you use in maintaining your salon’s air quality?

3. How often do you maintain your salon’s air quality?

Proper Storage of Chemicals

1. Where do you store your Chemical Products?

2. How do you monitor your chemical products from unauthorized use?

3. How do you remind your workers in handling the chemicals?

4. Where do you throw your used chemicals?

37
Labor Law Posters Display

Social Security System

1. Do the employees get benefits from SSS (Social Security System)?

Yes No

PAG-IBIG

1. Do the employees get benefits from Home Development Mutual Fund?

Yes No

PhilHealth

1. Do the employees get benefits from PhilHealth insurance?

Yes No

2. Do the employees get benefits from SSS (Social Security System)? If

yes, what benefits can they avail?

3. Do the employees get benefits from Home Development Mutual Fund

(Pag-IBIG)? If yes, what benefits can they avail?

4. Do the employees get benefits from PhilHealth insurance? If yes, what

benefits

can they avail?

Hours of work

1. Does the business follow the 8 working hours every day?

38
 2. Do they have the same break time for the regular and irregular

employees?

3. How many minutes do the employees have for their lunch break?

4. Do they have break at 3pm?

5. How long do the employees have a break in the afternoon?

Rest day

1. Do all of the workers receive their daily salary rate, even if they are on

their rest days? Who are they? Why?

Holidays

1. Does the business follow the labor law of the workers that during

regular or special non-working holidays, still they can receive their daily

salary rate? To whom?

2. Does the business give credit to their workers through adding 30% or

multiplying their daily salary rate by two during regular and special non-

working holidays? To whom?

III. Challenges Encountered

1. As a business owner, how do you deal with the challenges that your business is

encountering?

2. How do you resolve all the negative feedbacks of your business?

3. What are your actions to prevent the challenges of your business?

39
I. The Company Profile

What type of Business is this salon?

Partnership Corporation Sole Proprietorship

How many Employees does the business have?

How long did the business operate in terms of years?

1-2 3-4 5-6 7-8

9-10 10-Above

How much is the business annual income?

_____________________________________________

II. Existing Management Practices

Proper Licensing

40
 General Licenses and Permits

Does the business have all the required general licenses and permits such as:

Department of Trade and Industry (DTI)?

Yes No

Bureau of Interval Revenue (BIR)

Yes No

Mayor’s Permit?

Yes No

Barangay Permit? Yes or No

Yes No

Cosmetology Salon Licenses Types

Which of the follow types does the business apply?

Full-Service Salon (hair, skin, and nail services)

Manicuring Shop only

Aesthetic Salon (facials and waxing)

Barbering

Cosmetologist Licenses

Does the business require licenses of expertise of an applying worker?

Yes No

If yes, what are the required licenses?

________________________________

41
 If no, why?

________________________________

Sanitation and Hazardous chemicals Compliance

Disinfecting

In cleaning your salon equipment, do you use chemicals?

Yes No

If yes, what are the chemicals do you use?

__________________________________

__________________________________

First Aid Kit

Does your store have a first aid kit?

Yes No

If yes, how many do you have?

__________________________

Do you check your first air kit supply?

Yes No

If yes, how often do you check?

_________________________

42
 Private Washroom

Do you have a Private Washroom?

Yes No

If yes, how many do you have?

___________________________

Proper Ventilation

Does maintaining your salon’s air quality involves chemicals?

Yes No

If yes, what are these chemicals?

____________________________

Proper Storage of Chemicals

Do you store your chemicals?

Yes No

If yes, how do you store it securely?

________________________________

Do you label your chemical products?

Yes No

If yes, do you separate them accordingly?

_________________________________

43
Labor Law Posters Display

Do you get benefits from SSS (Social Security System)?

Yes No

Do you get benefits from Home Development Mutual Fund (Pag-IBIG)?

Yes No

Do you get benefits from PhilHealth insurance?

Yes No

Hours of Works

Do you have an additional pay when you undergo over time because of

many customers?

Until what time do the overtime pay starts?

How many days do the business operate in a week?

Rest Days

How many days is your rest day?

1day 2days Others: ___

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 Holidays

Do you still operate the salon even on holidays?

Regular non-working holidays?

Special non-working holidays?

III. Challenges Encountered

Have you experienced dealing with problems in the company?

Yes No

Have you encountered negative feedbacks in your company?

Yes No

Are your employees passionate enough to perform their job?

Yes No

Challenges

What challenges have they encountered from their business experience?

The company cannot foresee the future of the business.

Uncertainty about the future

The company is having a hard time to increase financial gains.

Financial Management

The company is having a difficulty in monitoring a staff’s

performance.

Monitoring Performance

45
 The company is having a difficulty in obeying the legal laws and

regulations.

Regulation and Compliance

The company cannot operate efficiently and effectively due to

outdatedness.

Technology

The company do not stand out among competitors.

Competencies

The company is having a difficulty in hiring passionate employees.

Recruiting the right talent

The company is having a difficulty in providing satisfaction to

clients.

Customer Service

Course of Action

What actions have you implemented to respond upon these challenges?

___________________________________________________________

___________________________________________________________

46
 APPENDIX C – GANTT CHART

47
 48
 APPENDIX E – CURRICULUM VITAE

Name: Frincis Sakura Desucatan

Date of Birth: October 07,2000

Address: Mactan, Lapu-Lapu City



Educational Background

Senior High School: USC-DC

Name: Antonette Marie E. Loon

Date of Birth: November 22, 2000

Address: Dumlog, Talisay City, Cebu



Educational Background:

Senior High School: USC-DC


Name: Kathleen Donella Coyoca Maucesa
Date of Birth: Feb 6, 2000
Address: Holy Family Village II, Banilad
Cebu City, Philppines

Educational Background:

Senior High School: USC-DC

49
 Name : Marc Ruzzel D. Rodriguez

Date of Birth: September 25, 2000

Address: Junquera Street, Barangay
Kamagayan, Cebu City

Educational Background

Senior High School: USC-DC

Name: Caselyn Clyde Uy
Date of Birth: November 27, 2000
Address: Lapu-Lapu City, Cebu
Educational Background:
Senior High School: USC-DC

Name: John Ruel S. Yap

Date of Birth: June 25, 2000

Address: Mya 2 Townhouse, Sambag 1,
kawayan St. Cebu City

Educational Background

Senior High School: USC-DC

50