FRANCHISING BUSINESS IN THE PHILIPPINES:

BOON OR BANE?

In Partial Fulfillment of the Requirements in

BUSINESS RESEARCH

by

Adriane Paul Espinosa

Nemelyn Joy Laguitan
Jovan Lugtu
Rowelyn Dela Cruz

November 26, 2018

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 Title Page
Table of Content

CHAPTER I: INTRODUCTION AND ITS BACKGROUND

Problem Statement
Theoretical Framework
Conceptual Framework
Conceptual Paradigm
Objectives of the Study
Hypothesis
Scope and Limitation of the Study
Significance of the Study

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 CHAPTER I
INTRODUCTION AND ITS BACKGROUND
Horse Racing is one of the most prominent leisure activities in the Philippines. It is
considered as the “King of Sports” which is pass in one generation into another generation. This
activity has been part of the cultural identity of the Filipinos all throughout the timetable of the
Philippine history.
The Manila Jockey Club Inc (MJCI) is one of the greatest players in horse racing industry.
It was founded in 1867 by the Spanish Governor-General to conduct horse races in the country.
In order to survive in the business, MJCI is diversifying its business portfolio which
includes strategic developments in land development, environmental protection and innovative
technology.
But the company cannot exist without considering the importance of its stakeholders. It
values the significant contributions of every single players internally or externally. One of the best
carriers of revenue/profit to the company are those who are assigned in different Off-track Betting
Station, they are known as OTB TELLERS. Raceday Teller is one of the most important positions
in the company. They act as the front-liner of MJCI in serving the betting public to carry out the
best and extraordinary service to the bettors. This position entails accepting/entertaining bettors in
placing bets thru terminal, reporting of betting related incidents and cash remittances.
MJCI and Raceday Tellers work as one entity. They are partners in promoting the horse
racing industry as well as earning its profit for the common good and best interest of the
organization and its stakeholders, especially the employees. However, due to the nature of their
work, there are certain concerns that cannot be answered by only providing what is included in
their employment contract but also taking into account the possible motivating factors to perform
well then improve the financial aspect of the company.
This research entitled “MOTIVATING FACTORS AFFECTING THE WORK
PERFORMANCE OF TELLERS OF THE MANILA JOCKEY CLUB INC. AND ITS
EFFECT TO THE BUSINESS PRODUCTIVITY “ shall help to provide possible interventions
by identifying work motivating factors to increase the performance of the tellers which will affect
the business productivity of MJCI.

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Problem Statement:
This study aims to determine the motivating factors of OTB tellers in order for them to
further improve their performance. Specifically, this study will answer the following:

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

a. Gender
b. Age
c. Civil Status
d. Highest Educational Attainment
e. Occupation:
f. Residence
g. OTB Location
h. Monthly Income
2. What are the possible reasons why OTB Tellers become underperformers?
3. What are the motivating factors in order for the OTB Tellers to improve their performance?
4. What are the suggested interventions from the organization to improve their performance?
5. What is the level of commitment of MJCI management in motivating its OTB Tellers?

Theoretical Framework
The study is anchored with the Maslow's Hierarchy of Needs Maslow's Theory that features
the concept of human needs as being generally ordered in terms of their relative potency as human
motivators. Some modification of Maslow's original categories have been made by McGregor.

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 Conceptual Framework

INPUT PROCESS OUTPUT

A. Franchised businesses in A. Data Gathering A. Conclusion
the Philippines B. Recommendations/
B. Questionnaire
suggestions
B. Top Franchised business
C. Interview
C. Demographic profile of
consumers of franchised
business

Conceptual Paradigm The research paradigm from the preceding page provides different factors
that can be a good source of motivation. It includes compensation, working conditions, recognition
and training. These factors can also be affected by some external factors beyond the control of the
organization.
On the other side, the researcher enumerated specific motivating factors based on the
common standards, it includes,

 High Compensation
 Comprehensive Benefits Package
 Management Recognition of Good Work
 Opportunities for Advancement
 Interesting and Challenging Work
 Job Security
 Participation in Setting Professional Goals
 Freedom to Work Independently
 Open Communication between Managers /Employees
 Having Respect for the Organization

In the event the MJCI management affirms the motivating factors, there will be effects to
its revenue.

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Objectives of the Study:
The main objectives of this study are as follows:

1. To study the franchising business in the Philippines

2. To identify the factors that benefits business by doing franchising
3. Determine how franchising business works in the Philippines
4. Determine what industry is highly franchised
5. Determine the success of franchise business in the Philippines

Hypothesis
The hypothesis will be raised in the study to test the level of significance of variables.

1. Is there a significant relationship between the demographic profiles of the respondents in

terms of:
a. Gender
b. Age
c. Civil Status
d. Highest Educational Attainment
e. Occupation:
f. Residence
g. OTB Location
h. Monthly Income
2. What are the reasons why tellers tend to become underperformers?
3. What are the motivating factors that will boost the performance of tellers?
4. What are the possible interventions from the organization to improve teller’s performance?
5. What are the initiatives of the MJCI management in motivating its OTB Tellers?

Scope and Limitation of the Study

Franchising is a great way to start a business if the businessman want to avoid high risk on
entering the business world. Franchisor, Franchisee, and Consumer are the main focus of this
study.

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This study will be limited to the top franchise business in the Philippines that highly attract the
consumers that will also affect the revenue of franchise businesses. This will also provide possible
strategic plan and recommendations for business men.

The researcher shall only consider franchise business who are doing operations from different part
of Metro Manila.

Significance of the Study

This study will be beneficial to the following entities:

1. Franchisor: the result of this study will give the franchisor the opportunity to
determine the effects of their products or services to the consumers.

2. Franchisee: The Franchisee can determine ways or additional strategic plan to

accommodate their consumers.

3. Business minded Filipino: For those who aspire having a business, they can
determine how franchising works and if it attracts a consumers. They can also know
the Franchise industries that are profitable in the Philippines.

4. Researchers: The result of the study will be serving as a guide of other researchers
who would like to embark on a conduct of study of similar nature.