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BUSINESS VISION, MISSION AND GOAL/OBJECTIVES:

Vision
The Karatcha Japan Surplus envision itself to be successful and one of the
leading surplus industry in Camarines Norte.

Mission
It aims to provide service in surplus industry that will satisfy buyers and sellers
expectation by providing them with high quality surplus product which properly packed
and stored. It will also contribute to the economic upliftment of the province of
Camarines Norte by providing employment to people in rural areas.

Goals/Objectives
Obtain reasonable profit from selling surplus product
Provide tested and proven product at very affordable price.
Provide employment to people in the province of Camarines Norte.
Achieve high market share in the local surplus industry by securing high quality product
and services.
Contribute to society development through prompt and honest payment of tax
obligations.
Chapter 1
Introduction
Surplus is an economic measure of a positive balance of trade, where a countrys
exports exceed its imports. A trade surplus represents a net inflow of domestic currency
from foreign markets, and is the opposite of a trade deficit, which would represent a net
outflow.
When a nation has a trade surplus, it has control over the majority of its own
currency. This causes a reduction of risk for another nation selling this currency, which
causes a drop in its value. When the currency loses value, it makes it more expensive
to purchase imports, causing an even a greater imbalance.
Because a trade surplus usually creates a situation where the surplus only grows
(due to the rise in the value of the nations currency making imports cheaper), there are
many arguments against Milton Friedmans belief that trade imbalances will correct
themselves naturally. http://www.investopedia.com/terms/t/trade-surplus.asp
The project is entitled Karatcha Japan Surplus. The name of the business
Karatcha came from an old Tagalog language which means a hardworking person,
non-stop working, and workaholic. This business has 2 owners; Mrs. Elvia Laxamana
and Mrs. Virginia Fernandez. The reason why the owners put up this business is to give
their own family convenience and to provide employment to people in the province of
Camarines Norte. The business opened last February 14, 2014. It was located in Li
Seng Giap St. Daet, Camarines Norte. The product that the business sells are
garments, cabinets, kitchen stuff, sofas, bags, shoes, and many more. The business
products are 2
nd
hand, imported and tested especially the quality of the product which
was from Japan.
This project aims to help customers find what is suitable for their budget. It has a
good quality, tested, and proven products which can truly make our customers satisfied
for our service and industry. Being practical nowadays, most of the customers find
where they can buy less expensive stuff and products that customers can use for a
long term. As of today, daily use is an important matter to every customers especially
during seasonal like spring, and summer, and occasional like birthday, christening,
wedding, reunion, Christmas, and New Year. The surplus industry also gives discount to
their valuable customers that can make them happy and satisfied for the product
especially during sale different kind of customers are visiting their industry. The best
sellers of the industry are various cutleries such as spoons, forks, plates and many
more. Even the upper class people buys 2
nd
hand stuff because they know that it is a
quality product. As of today, surplus is now becoming popular business as well as
competitors is increasing, for instance competitors see that it is suitable and popular to
every people especially those who have a small budget only. Rather than buying brand
new products, customers will better go to buy in a surplus which is less expensive and
look like a brand new products. Malls and surplus products here in Daet has a lot of
difference which in malls the product they are selling are mostly made in China and it
can only be credit card and cash base. While in surplus, even though it was a 2
nd
hand
the good thing is, it was made in Japan which is proven and high quality product and the
store only accepts cash payments.
Chapter 2
Review of Related Literature and Studies

A. Related Literature
For further study and research about the topic, the researchers made use of
references from different kinds of medium such as books, magazines, the internet
(articles, research papers posted online, etc.) and other mediums in order to broaden
and to create more ideas involving their study.
These references will help the researchers achieve their goals and provide
proper and accurate data involving the project.
Foreign
The internet, due to its wide array of users has become a catalyst for different
businesses and firms to reach out further and provide goods and services throughout
the web. This process is known as electronic commerce or E-Commerce which is
defined as any business interaction or exchange wherein both sides are interacting via
web or the internet instead of physically transacting with each other (Aldin, Brehmer &
Johansson, 2004).
One reason for increased product variety on the Internet is the ability of online
retailers to catalog, recommend and provide a large number of products for sale.
(Consumer Surplus in the Digital Economy, by Brynjolfsson, Hu, and Smith) (2003).
According to Brynjolfsson, Hu, and Smith, Limited shelf spaces constrain the amount of
goods that can be purchased by consumers as opposed to the more wider choices
offered by online shopping. A recent study conducted by Stamford Conn. (2013) States
that 81 percent of consumers start their purchase by searching through the internet
using search engines, it was also stated that the average buyer would spend no less
than 72 days before making the major purchase.
The studys findings are shown as followed:
For one out of four major purchase shoppers, the purchase was part of a larger
project.
Replacement and upgrades are the two most prevalent triggers to purchase.
The length of the purchase cycle and price are highly correlated.
Consumers say digital tools empower them to compare prices and find the best
value.
Shoppers search for the following when they visit the retailers website (in order of
importance): warranty information (66%), pricing (52%), specs/model information (51%),
payment/financing information (47%), sales/discounts, availability and shipping
information.
On average, consumers visited five unique retailers at least three online
merchants and two brick-and-mortar stores before making their purchase.
(http://www.retailingtoday.com/article/study-81-research-online-making-big-purchases)
According to the findings of Na Li and Ping Zhang in their research paper, Consumer
online shopping attitudes and behavior (2002) factors such as Demographics, Website
quality, the buyers attitude towards online shopping, intention to online shopping, and
customer satisfaction are factors that affect the impact on how people shop online. In
addition, other factors include Consumer traits, situations factors, product
characteristics, and previous online shopping experiences affect how the consumer acts
when shopping through online (Machado (2005)). The said research paper also states
the risks and benefits of online shopping. These studies show that online based
marketing is an effective way to achieve customer satisfaction and loyalty to the store.
Local
Around more than 15% of the Philippines population have access to the internet,
and since online shopping has become available in the Philippines, online shopping
stores such as Lazada, Sulit, TipidPC and others are gathering many Filipino patrons as
well as small businesses in order to expand their marketability.
An article published on the Philippine Daily Inquirer (September 4, 2012) states
that Filipinos are among the most active consumers when it comes to online shopping.
But studies show that only 34 percent of Filipino online shoppers have actually made
purchases compared to 64 percent in the Asia pacific and 49 percent globally. The
study found that although Filipinos are active in browsing the web and online stores,
less are actually buying something from online shopping. In addition, an article also
published on the Philippine Daily Inquirer (March 9, 2013) states how fast the
community of online shoppers in the Philippines is growing and the main concern of
online Filipino shoppers is security of their purchases. The article stresses that credit
card companies as well as payment solutions must effectively promote security of their
services. Other suggestions mentioned in order to improve Filipino online shopping
experiences include minimizing delivery fees and of course to protect the consumers
against malicious and harmful websites to provide a safer online shopping experience.
http://technology.inquirer.net/16152/filipinos-top-in-online-shopping-research-but-lag-in-purchases
http://business.inquirer.net/111455/more-filipinos-now-shopping-online
B. Related Studies
The section is consisted of information derived from thesis and studies that is
also relevant in this study.
Foreign
E-commerce is a standard method of providing distributed information to many
different platforms. It is being implemented by a growing number of companies to be
more completive in corporate world. All companies need to make a step forward
towards a new technology. To be able to compete with the global market, e-commerce
was a good answer (Lanvin and Maggarqul, 2006).
The companys websites seem to have significant influence on sales and
corporate image, and are expected to contribute to overall customer satisfaction
(Hossain, 2007). The easiest way to be reliable to the customer is to maintain an easy
and simple image in the companys website, which created positive web experience to
the customer. This can be done by having transparent interface, rich content, easily
accessible information and having a design that facilitates multiple audiences. This is
simply emphasizing the importance of knowing the target visitors as they have different
tastes in terms of color and design as a whole. Also, a good design is not enough to
make your customers stay in the website; it must be informative as well especially on
the product details. As what Efendioglu and Igna stated that companies may have great
content, dynamic and attractive design on their website, but the customer may not be
aware of that website because of wrong or inadequate online marketing. (Retrieved
from https://pure.ltu.se/ws/files/33033408/LTU-EX-2011-32955905.pdf)
Website security also refers to the protection of confidential information of
the consumers. This is one way of gaining the customers trust because customers want
to believe that the information they provide will be protected and used only in
appropriate ways (Mansoorian, 2006). Some of the important details to be protected are
Address and Contact Number which has to keep in private. Passwords must also be
encrypted to protect the consumers account from hackers.
Local
Businesses who engaged into Electronic Commerce (e-Commerce) have been
observed to gain a competitive edge in the field of Marketing in terms of accessibility,
convenience and availability. Since the internet is accessible by people globally, the
customers are no longer limited within the vicinity of the store. Anyone can visit the
store anywhere, anytime without hassle. Just by navigating the store, the customer can
choose the products and purchase it without going to the store directly .E-commerce
proves to enhance the way usual business transactions occur and helps lessen the time
and effort consumed by the company and customers as well (Deanna and Fritz,2006).
With these, a good relationship with their consumers will be established and their
objective of increasing their sales will be achieved (Kim and Katherine, 2004).
Through internet, E-commerce offers a simplified approach in business deals and
gives a new option for selling and buying the companys products and at the same time
not only selling and buying of products but also advertising the site. (Roso and Navarro
2006). Since the products are available in the web, the more chances of gaining
exposure to target customers and can eventually encourage them to purchase an item.
Its the most affordable way of advertising compared to some paid commercials that
even small businesses can easily implement.
Since most of the companies employ websites as one of their marketing
strategies, competitors are also spreading. The company must take into considerations
the key factors in order to have a successful online marketing system starting from the
target audience, web design, interface, security in terms of payment and customer
information, content and even the smallest details of a website.





Chapter 3
Research Methodology
This chapter describes the type of research method to be used, description of
the respondents, and the procedures that will be used in order to collect data.
For this study, the researchers will make use of the descriptive method of
research approach in order to gather data to conclude if the online shopping project
proposal for Karatcha Japan Surplus is more effective and if it results in improvement of
their sales. The researchers also make us of a Survey approach in order to gather more
data about the project proposal.
To determine the ideal sample size of the respondents for this research, the
researchers will use the Slovens formula:
n = N
1 + Ne
2


where:
n is the size of the sample
N is the size of the population, and
e is the margin of error.
A survey will be administered to a select group of samples from a population of
avid shoppers ranging from 18 to 30 years old. The primary method of collecting data
will be through the use of questionnaire which will assess the different shopping habits
of the respondents and if they are more comfortable and if it is much easier to shop
online rather than shop offline. Through the collected data, the researchers could have
an idea if an online shopping website will have an effect of the sales of the Karatcha
Japan Surplus store.

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