San Pedro College of Business Administration

The Effect/s of Robinsons Galleria

South to the Small Businesses of
Barangay Landayan San Pedro, Laguna
VIBAR, Michaela Juliana P.

MENDOZA, Vanessa Bianca Y.

JUSTO, Kurtnick O.

ARADO, Christine Joy

DEMANA, Cheryl

An Undergraduate Research

Presented to the Faculty of the

Department of Senior High School

of the

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

In Partial Fulfillment of the Requirement for Practical Research

San Pedro City, Laguna

 San Pedro College of Business Administration

INTRODUCTION

The Robinsons Galleria South in San Pedro Laguna is a good attraction but the small

businesses in Landayan which is near to the Robinsons Galleria South will face a big problem.

Robinsons Galleria South served as the first mall in San Pedro Laguna, that’s why many people

in San Pedro are excited to visit it. In this research we will know the effect/s of Robinsons

Galleria South to the small businesses around Barangay Landayan. But first and foremost,

what is big business and smaller businesses? Based on the researchers at the SBA defined a

small business as a firm with less than 500 employees (SBA 2014). While according to Jones

and Rowley (2009) other descriptions of firm size categories include very large (more than

500 employees), Large (200 to 500 employees), medium (50 to 200) and micro (fewer than

10 employees). Having a Big business in an area of urban is a great thing but for the small

businesses that the urban area has, it is not the good thing.

Big business can kill or eliminate the small businesses in that area because bigger businesses

can occupy more costumers and may change the customers’ perception of buying that can

result on having a poor profit. The coverage of this study will be knowing what will be the

effect/s? What is the result of that effect/s to the daily life of the smaller businesses in

Landayan? Our target respondents will be the small business owners and their customers’

point of view. The purpose of this research is to know if there is really an effect of having a

big business near to the smaller business in Landayan and also give a feedback to the small

business in Landayan so that they can collect more data that can change their marketing

strategies to be able to compete and to survive their businesses. We will also try to know if
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that effect/s is good or bad and also if there is a business that is eliminated already. We will

also try to know what is their profit standing because through that we will be able to conclude

if there is a bad or a good effect if the sales is still the same or getting higher. The reason why

we want to conduct this research is that we want to know if Robinsons Galleria South indeed

have an impact to the business in Landayan.

Every Friday and Sunday the sidewalk of Landayan is full of vendors and small business that’s

results a crowded and causing traffic along the road because of the costumers are buying and

walking almost in the middle of the road that cause blockage along the road. It is also

sometimes called the “Landayan Mall” because of the lots of vendors and small businesses.

But when the Robinsons Galleria South established suddenly the crowded and a traffic place

before is now a wide road and crowded free place because people is now going to the

Robinsons Galleria South. A lot of people are going to Landayan because of the famous church

in Landayan. After the mass people is buying to the sidewalk vendors and small business

before but after the established of the Robinsons Galleria South the scenario became

different.

BACKGROUND OF THE STUDY

As a residence of Barangay Landayan, we are used to see many people in Landayan every

Fridays and Sundays. There are plenty of small businesses and vendors along the sidewalk of

Landayan. Even though there is a signage telling that “No vendors allowed” still many
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vendors are disobeying. Because it’s the main source of their family’s basic needs. Many

people are going to Landayan every Fridays and Sundays to visit the famous church in

Landayan. That is why you can see many small businesses in Landayan because they see that

as an opportunity to make a money. Because of having a congested area it’s results of a

traffic in vehicles and slow movement of the people. That is before Robinsons Galleria South

was established.

The establishment of Robinsons Galleria South was on July 19, 2019 and a lot of people get

excited are going to that mall. Few months after the opening of a Robinson Galleria South, it

was Friday while we are walking along Landayan, we noticed some changes in Landayan.

Since it was Friday, we are expecting huge number of people walking along Landayan. But

we are surprised to see that the crowded area in the past is not like before. Some changes

that we noticed is a wide road that it looks like it was just an ordinary day. Because of that

we think that the supposed to be people in Landayan is now on the Robinson Galleria South.

We came up to the idea of conducting a research in this situation. Because now a days some

people would go to the market place which can make them relax and a convenient one than

to a place which is so hot and so crowded. They are willing to spend too much to a product

that is quality and beautiful.

As we observed and one of our assumptions is that there are some customers prefer

Robinsons Galleria South rather than smaller businesses in Landayan because big business

we can’t eliminate the fact that bigger businesses had broad range of demographics and

stabilized facilities but still smaller business can still compete with bigger businesses through

strategies.
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STATEMENT OF THE PROBLEM

The purpose of this study is to evaluate the effect/s of Robinsons Galleria South to the small
business around Barangay. Landayan. Robinsons South Galleria is a big Business that is near
to the Barangay. Landayan

Our sub problems are the ff:

1. How much small businesses in Barangay. Landayan earns before and after having
Robinsons Galleria South near their place?
2. Is Robinsons Galleria South beneficial for small businesses in Barangay. Landayan?
3. What are the changes noticed by the small businesses’ owners in Brgy. Landayan when
Robinson Galleria South came?
4. What are the impacts, caused by Robinsons Galleria South, to the small businesses in
Barangay. Landayan?
5. What do customers prefer? Smaller businesses in Landayan or the Robinsons Galleria
South?

OBJECTIVES

 To know the effects of Robinsons Galleria South to the small business in Barangay
Landayan
 To identify whether Robinson's Galleria South affect small businesses in Landayan
negatively or in a positive way.
 To answer our question, is having Robinson's Galleria South good for the small
businesses in Landayan or will it be a threat for them.
 To know the income of small business in Landayan before and after the establishment
of Robinsons Galleria South.
 To know the changes of small businesses in Landayan when Robinsons Galleria South
came.
 To know the customers’ perception between the smaller businesses and Robinson
Galleria South.
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THEORETICAL FRAMEWORK

Strategic Conflict
(Carl Shapiro, 1989)

One competition-based theory of business strategy is strategic conflict. The strategic conflict

approach complements Porter's strategies in that it recognizes the ability a firm has to

manipulate its market environment, thus improving its competitive outlook. Utilizing a game

theoretic foundation, strategic conflict can help firms identify and pursue a preferred position

within their industry. As firms act, they also anticipate what action they believe their rivals

will take. Some of the potential strategic "moves" Shapiro highlights include investment in

physical capital, investment in intangible assets (e.g., R&D), strategic control of information

(impacting rival firms' beliefs about market conditions), horizontal mergers, product

standardization (e.g., in highly networked industries), and strategic contracting.

The Difference Between Big Businesses & Small Business

(by Gregory Hamel)

Creating a successful new business is a tough job, especially when a new company has to

compete against large, well-established businesses. While small businesses and large

businesses might operate in the same market, they have significant differences that can have

a large effect on business operations. Small businesses not only differ in size from larger ones,

but tend have different legal structures, financing arrangements and market niches.
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Business Legal Structure

A business's legal structure determines how the business is managed, taxed and whether

owners are liable for business debts. Many small companies start as sole proprietorships or

partnerships, which give a sole owner or a group of owners complete control over a company.

Owners of sole proprietorships and partnerships pay income taxes for business profit on their

personal income tax returns. They are also legally liable for business debts.

Large companies are often organized as corporations that pay taxes separately from the

owners. Large corporations have reporting responsibilities, such as SEC filings, that most small

businesses do not. Owners of corporations are shareholders who vote to appoint executive

board members but do not directly manage the business.

Financing of Small and Large Businesses

Financing describes how a business raises money to fund operations and new projects. New

small businesses typically receive financing from the personal savings of owners, small

business loans from banks, and gifts or loans from friends and family members. Well-

established small businesses and medium-sized companies might be able to attract financing

from outside investors and money from venture capital firms. More recently, some firms have

turned to online funding campaigns at sites like Kickstarter in order to launch a new project

or an entire business. Large corporations can raise money by selling shares of stock to the

public and by selling corporate bonds.

Differences in Market Niche

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Another difference between small businesses and large companies is that small companies

often focus on a niche market, while larger companies tend to offer more products and

services to a wider variety of consumers. A small company with only a few employees might

be able to make enough money to survive by selling a single product or service in a very

specific market. As companies grow, they tend to branch out into new markets and offer new

products and services to increase sales and hire more employees.

Competitive Dynamics Theory

(Ken Smith, Walter Ferrier, Hermann Ndofor, 2001)

Competitive dynamics theory helps explain the interaction and impact of firm actions and

competitor reactions in a given industry. Action can relate to any observable decision made

by a firm for the purpose of defending their current competitive position or attempting to

gain a new competitive position. Examples of actions may include making price changes,

initiating special marketing activities and etc.

The competitive dynamics model looks at both the firm initiating a competitive move as well

as the reacting rival firm. Several characteristics of the initiating firm's action are considered

by the competitor before formulating a response. First, the scope of the action is relevant. An

action that has an impact on multiple competitors is more potentially threatening than an

action that has an impact on only one competitor firm. Second, the type of action

(tactical/temporary versus more strategic) is considered. Several attributes of responder's

reaction are also relative to the competitive dynamics, including the likelihood of a response

(if the attack is substantial, the likelihood is higher) as well as the frequency and timing of the

response.
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The Difference Strategic Competitive Dynamics

Between Big Conflict Theory
Businesses & • physical capital • Before formulating a
Small Business • investment in response
intangible assets • Scope and Type
• Business Legal
Structure • strategic control of
information • Attributes of responder's
• Financing of Small reaction
and Large • horizontal mergers
• Likelihood
Businesses • product
standardization • Frequency and Timing
• Differences in
Market Niche • strategic
contracting

THE EFFECTS OF COMPETITION

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In this model the first one is the difference of Big business and small business, we put it first

because before you make the strategies is that you must know first your business differences

to others. While small businesses and large businesses might operate in the same market,

they have significant differences that can have a large effect on business operations. The

differences of small and large business are (business legal structure, financing of small and

large business, difference in niche market). The first one is business legal structure states that

business's legal structure determines how the business is managed, taxed and whether

owners are liable for business debts. Most of the small business is using sole partnership

which pay income taxes for business profit on their personal income tax returns. Large

business most organized and pay their taxes separate from owners and they have SEC filings

to pass that small business do not. The second one is financing of small and large businesses

states that well-established small businesses and medium-sized companies might be able to

attract financing from outside investors and money from venture capital firms while new

small businesses typically receive financing from the personal savings of owners, small

business loans from banks. Large business can raise their money by selling shares of stock to

the public and by selling corporate bonds. The last one is difference in marketing niche states

that small companies often focus on a niche market, while larger companies tend to offer

more products and services to a wider variety of consumers. Small business only focusing on

one group of people while the larger companies have a lot of products and also a lot of

costumers that will purchase it.

 San Pedro College of Business Administration

The second part of our model is the strategic conflict which states that when the other firms

act, they foresee what response will their competitors would do. Some of the potential

strategic "moves" Shapiro highlights include investment in physical capital, investment in

intangible assets (e.g., R&D), strategic control of information (impacting rival firms' beliefs

about market conditions), horizontal mergers, product standardization (e.g., in highly

networked industries), and strategic contracting. We put this into the second part so that

after you know the differences you would now know what strategic moves you would do for

you to also counter what will be the rivals or competitors thrown to you.

So, as we say in strategic that if you an act there will be also another act that will be thrown

and this is when the competitive dynamics theory comes. Competitive dynamics theory helps

explain the interaction and impact of firm actions and competitor reactions in a given

industry. So, there are 2 classifications of competitive dynamics theory it is the actions and

reactions. Action can relate to any observable decision made by a firm for the purpose of

defending their current competitive position while Reactions represent the corresponding

response taken by a rival firm. So also, in this theory there is a characteristic of the initiating

firm’s action before formulating a response which is the magnitude, scope, type. In magnitude

it only says how strong the action. In scope it only says that who are the businesses that is

involve in that attack. In type it only says that what is the type of action is it temporary or

strategic. Also, there is also attributes of responder’s reaction are likelihood, frequency and

timing. The longer time lag between actions and reactions, the initiator may get a greater

advantage which is called Frist-mover advantage.

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All of these theories say only one point it is the effects of competition because if there is

already an exchanging of actions of course if you lose/win there will be a big impact on your

business that can result a lot of effects whether it is good or bad. If you disregard our business

names in our title you would come to a title like this “The effects of competition between

small and big business”.

CONCEPTUAL FRAMEWORK

INPUT PROCESS OUTPUT

Small businesses in
Landayan
- survey
-Business Permit the effects of
-business name - Data collection Robinsons Galleria
-Profits and sales - Data analysis south to the Small
-location business in
Consumers'demographiics
- Presentation of
data Landayan were
-Age determined

On our model as, you can see it is the framework of how are we going to do or conduct our

research. First and foremost, in our inputs we have small businesses in Landayan, Business

Permit, Business name, Profits and sales and location. So, this just only saying that our source

of information must have those mentioned details above. First our business source of

information must be a small business in Landayan. We will not get our information to the
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small business that is not inside the Landayan and also not belong to the scope of our study.

Next is that the business source of information must have its business permit so that we can

say that it is legal and a real business and not just a vendor. Next our business source of

information is business name of course you cannot call it a business if it’s don’t have a name

because some people will just recognize you as a vendor and not a small business. We are not

looking for a vendor but we are looking for a small legit business. Profits and sales, we need

to know the profits and sales of our business source of information because in our objectives

one of our question is their profit standing before and after t6he establishment of Robinsons

Galleria South. In this data we can make a conclusion if there is an effect or none of have

Robinsons Galleria South. The last one in the input is the location of the small business of

course as we say in our scope and limitations are choices of vendors that we are going to

interview is from the crossing of Landayan to the boundary of Landayan or where the arc that

have a name of Landayan. This only means that our business source of information must be

placed within the crossing of Landayan to the boundary. We will not be going to take any

information or opinions of small business that is not located to the mentioned place above.

The second part of the input is there is the demographics of the consumer because different

ages of consumers also have different perspective to the small business and Robinsons

Galleria South. Example is young wants the modern way of buying which is going to malls so

that your clothes will look more beautiful than the old’s that is more practical when they are

buying they want something cheap but with a good quality.

Next of our model is the process which contains survey, data collection, data analysis, data

presentation. Our methodology or how we are going to get the information is by survey to

our business source of information’s of course before we jump to the process part we already
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found our businesses source of information’s and those businesses indeed passed our criteria

for them to be our object. So, after conducting the survey we are now going to collect the

data that we asked. After collecting those data, we were now going to analyze those collected

data know their similarities, difference, analyzing the answers of our respondents, knowing

their relationships. And the last part of the process is that the presentation of the data it is

where the findings or results is now ready and the answers of our respondents is now

compiled.

The last part of our framework is the output it is where the results is presented, have a

conclusion and a summary to the whole study. In the last part the main problem of our

questions is now have a concrete answer and also to our sub problems they now have their

concrete answers based on our collected data and the relationship on them.

HYPOTHESIS

Null hypothesis:

 There is no effect of having Robinsons Galleria South to the small businesses of Barangay

Landayan. Their sales are still the same.

Alternative hypothesis:

 There is an effect of having a Robinsons Galleria South to the small businesses of Barangay

Landayan. One of those bad effect is that elimination of a business.

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SCOPE AND LIMITATIONS

In research, the scope defines the problem or subject that a researcher plans

to study. Limitations are factors that the researcher encounters that inadvertently narrow

the scope of the study. When researching a topic, people often encounter limitations that

may affect the results of the research.

This study focuses on how bigger company affects the small businesses which is near

Robinsons Galleria South, small business can be found along the sidewalks near to the famous

church in Brgy. Landayan, San Pedro, Laguna. Our statistics will be based on our observation

and also by gathering information’s or data through interview to the people who can relate

with it or just simply the owners of the small businesses in Brgy. Landayan, Customers in

smaller businesses and Robinson Galleria South is included to our research.

This study will not cover or tackle up non-related topics to competition to those businesses.

The other businesses that aren't positioned near Robinsons Galleria South are not included

to this scope of our research and also to those businesses that not inside the Brgy. Landayan

sidewalk. The study would be done through interview to those people as well as observation,

by this strategy we can able to identify the effect of having RBG near small businesses. We

were only going to interview 5 to 10 small businesses in Landayan. And those businesses must

have their own shop locations and also have their own business name.

The exact boundary of our choices of the small business is that from the crossing of Landayan

which is located to the right side of the church of the Landayan to the boundary of the
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Landayan. This means that small business that don’t have a business name, business permit

and not within the crossing of the Landayan to the boundary of Landayan will be excluded to

our choices of small businesses that we will interview or conduct a survey. We will only be

choosing 5 to 10 small businesses that we are going to conduct a survey. Even if you have a

business name, business permit, and inside of Landayan but you are not within the crossing

to the boundary of Landayan you will still be excluded. Because from the crossing to the

boundary of Landayan is the most place where people buy or should I say what we called “the

Landayan Mall”. Those 3 criteria’s must be passed so that we can say they are the small

businesses that we are looking for.

The scope for consumer is that only buyers or consumers of small businesses and Robinsons

Galleria South will be our possible respondents. While the limitations for consumer is that a

buyer only of one of the two. For example, a buyer only of Robinsons Galleria south or a buyer

only of Small businesses in Barangay Landayan. Those kinds of consumer is not part of our

study.

SIGNIFICANCE OF THE STUDY

TO THE SMALL BUSINESSES OWNERS IN LANDAYAN

the small businesses owners in Landayan is the main persons who will benefit in this. Because

they can make an assessment also to their business so that they will not be eliminated or

bankrupt. They can change their marketing strategies if they will find out the result of this
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research. They can make another way of approaching the costumers so that their business

can still survive even if there is a Robinsons Galleria South.

TO SMALL BUSINESS OWNERS IN THE SAME SITUATION

this research can help them to change their marketing strategies also for them to prevent also

to elimination. At least in this research they will know what can be will happen to them also.

TO FUTURE RESEARCHERS OF THE SAME/RELATED STUDY

To future researchers of a study related to the effects of a big business to the small business

this research can give them an idea of what will it be.

DEFINITION OF TERMS

Eliminate - Completely remove or get rid of (something)

Marketing strategies - A plan of action designed to promote and sell a product or service.

Evaluate - To judge or determine the significance, worth, or quality of; assess: to evaluate the

results of an experiment.

Impact – ‘A marked effect or influence’

Beneficial - Favorable or advantageous; resulting in good.

Costumers - A person or organization that buys goods or services from a store or business.

Profit - A financial gain, especially the difference between the amount earned and the amount

spent in buying, operating, or producing something.

Rival – a person or thing competing with another for the same objective or for superiority in

the same field of activity.

Niche market – is the subset of the market on which a specific product is focused.
 San Pedro College of Business Administration

Bureaucracy - a system of government in which most of the important decisions are made

by state officials rather than by elected representatives.

CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

LOCAL STUDY

When it comes to the pros and cons of businesses, the question isn’t whether it’s better for

you to build a large-scale business or a smaller business, the question is how to leverage the

size of your company for maximum success. If you own a smaller company, it’s useless to talk

about the pros and cons of big businesses without understanding that the factors, which make

big businesses work or fail, are the real lessons you must learn. The advantage that large firms

have is that typically, they are more established and have greater access to funding. They also

enjoy more repeat business, which generates higher sales and more profits than smaller scale

companies. (Sampson Quain, 2018). The first advantage of Large businesses is that they are

more establish to the point that they can more get a higher profit.

According to Sampson Quain’s study (2018), it is stated that the size of big companies means

that they are often engaged in selling many different types of products and services, which

helps insulate them against unforeseen changes in the economy. For example, a big computer

company that also sells mobile phones, tablets, and MP3 players is better positioned to

survive when mobile phone sales begin to dip across the board. That’s because the company
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can rely on the sales of tablets and computers to offset revenue loss related to lower demand

for mobile phones. A small-scale computer company that only sells computers and

accessories is less likely to weather a severe dip in demand for its products. This is another

advantage of Large businesses because they are selling not only a one product but a lot of

product so that their possibility of costumers coming to them is much higher

Moreover, large companies also have the financial resources to invest in foreign markets. This

means that they can establish subsidiaries overseas and expand their market share without

having to rely on the domestic market to drive their growth prospects. As a result,

diversification is one of the most important advantages of large-scale businesses. Another

advantage of Large businesses is that they can negotiate to the international companies that

absolutely small business cannot do.

Here are some of the advantages of a large-scale business according to Sampson’s study

(2018):

 Greater Brand Recognition

In the digital age, “branding” has become the buzzword of every business, from startups to

multinational organizations. Branding is all about awareness, and one of the major

advantages of large-scale business is stronger brand recognition, which is defined as the

percentage of people aware of a company’s name and products. Large businesses often start

out as smaller organizations and build brand recognition through social media channels,

advertising, and providing a consistently good product or service. Stronger brand recognition
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can boost a big company’s customer base because consumers will think of these companies

first when making purchase decisions.

 More Attractive Compensation Packages

Large business owners can also offer strong compensation packages when they make job

offers, which means higher salaries, more attractive bonuses, greater allowances benefits,

and other perks. This helps ensure that these businesses will draw from a more-talented pool

of candidates and that they will get their pick of the most qualified candidates for open

positions. On the other hand, smaller businesses tend to have more limited resources, which

means that they can’t offer the same kind of strong compensation package.

LOCAL LITERATURE

Bigger company had their marketing budgets, bulk purchasing power and they often found

focus on reaching a broad range of demographic. Bigger companies can occupy more people

than small firms. (Michelle Anne Y. Soliman and Zsarlene B. Chua, 2008). As Michelle and

Zsarlene stated is another advantage of big companies. The advantages of big firms from small

firms are knowledge transfer and sourcing of clients, while their disadvantage is too much

bureaucracy. Tristan Canare, Jamil Paolo Francisco, Nicholas Andrew Price Aim, Rigalino S.

Navarro Policy Center for Competitiveness. (2009). Large businesses may have a lot of

advantage but they also have a disadvantage just like what the researchers of Policy Center

for Competitiveness is that too much bureaucracy. One of the excessive bureaucracies is Red

tape is an idiom that refers to excessive regulation or rigid conformity to formal rules that is
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considered redundant or bureaucratic and hinders or prevents action or decision-making. It

is usually applied to governments, corporations, and other large organizations.

FOREIGN LITERATURE

Business competition is the process of companies and individuals competing in the same

industry or field. (Gregory Hamel, 2019). In our research our competing businesses is a large

or big business which is the Robinsons Galleria South while the other one is the small

businesses in Landayan. A small company with only a few employees might be able to make

enough money to survive by selling a single product or service in a very specific market. As

companies grow, they tend to branch out into new markets and offer new products and

services to increase sales and hire more employees. (Michelle Seidel, 2019). This citation only

means that if the employees of the small business is only few of course the owner will only

be paying few personnel also because a small business can’t handle a huge number of

employees cause if that happens the owner may be bankrupt. They can only raise their

employees if the business itself is also growing.

While small businesses and large businesses might operate in the same market, they have

significant differences that can have a large effect on business operations. Small businesses

not only differ in size from larger ones, but tend have different legal structures, financing

arrangements and market niches (Gregory Hamel, 2019). This citation really helps us in our

research because yes, the Robinsons Galleria South and small businesses in Landayan may be

selling products to the same group of buyers but they have a lot of differences that is really
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affecting their productions. Especially their sizes because the costumers will go for a place

which is not crowded and attractive than a crowded and small place.

The large-scale business will tend to charge a higher rate of fees and charges compared with

that of small-scale businesses and the disadvantage of smaller firms is that you don’t have the

ability and huge access to international companies. (MD Kamrul Islam, 2014). Kamrul said

that a large business has a lot of chances to charge or conduct a higher rate of fees than a

smaller one. One of the disadvantages that Kamrul said is that small business does not have

any access to negotiate to international companies or business. With their innovation and

creativity, small business has the potential to reverse the house for any economy Monahan,

Shah, and Mattare (2011). With that they can get the attention of the crowd in that point

they can raise their profits because of their creativity.

FOREIGN STUDIES

SBA’s study defines a small business as a firm with less than 500 employees, (2014).

It is also stated in Denise Leigh Gandy’s study (2014), that some strategies of small-scale

businesses for company profitability of sustainability are:

 Knowing the seasonality of a business

 Hiring the appropriate employees

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Knowing the seasonality only means that your product must be in the trends or in the season.

Example if you have a halo-halo shop of course this product is not appropriate in season of

winter or rainy days because this kind of food have an ice. If that is the climate of course

costumers will look for something hot. But when it is sunny days your product is on the season

cause costumers logically will look for a cold or iced food. The next one is hiring the

appropriate employees if you are hiring an employee that applicant should pass the

qualifications that you are looking for and they should know something about your product.

Don’t hire personnel which do not know anything at all to what you are selling.

In Cedric Salazar’s study he states that “Business competition is hard on small businesses due

to the global economy and global competition. This makes it even harder on small businesses

trying to make a profit within their trade or services. They have to face more and more businesses

and markets and have to worry about trying to beat out their competition. Large companies can

easily hire workers online or from other countries and pay the workers a much smaller wage or

salary compared to small businesses, who cannot easily access this labor market. Small

businesses regulate themselves according to their locations and what is within their range or scope

of employment.” Therefore, when the competition starts the small businesses have to face and

face a lot competition. And that can face the competitions is also facing risks such as elimination

of the businesses or low profits. He also added that “Most businesses are out there every day

worrying if they can survive another year, if they can turn losses into profits. Competition for these

businesses, particularly small businesses is one if not the most damaging hits to profits. There are

so many aspects of competition that can negatively affect any business and their goals.” Therefore,

he said that the effects of the competition to small businesses might be loss to their profits and

worst elimination.
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SYNTHESIS

The studies and related literature cited by the researchers have discussed about the

advantages and a disadvantage of a large business from a small firm. Which is the Greater

Brand Recognition, More Attractive Compensation Packages, they are more established and

have greater access to funding, selling many different types of products and services, have

the financial resources to invest in foreign markets. All of that is one of the reasons why the

bigger companies make them big and also the reasons why they are always step a head to the

small business. But they may have a lot of advantages they also have a disadvantage which is

the too much bureaucracy. One of the examples of excessive bureaucracy is the red tape

which is the complex procedures and rules that bureaucrats follow in completing their tasks.

Example of that is building your big business you have a lot of things to file before you start

the construction.

In Foreign Literature it talks more about the difference between small business and large

business and how small business makes money. There are a lot of differences between small

and large business as Gregory Hamel said it is that they are not only different in sizes but also

to their financing, different legal structure and also their market niches. But mostly you can
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see the difference in their sizes because it is as usual that big companies really have a great

space for their customers. Just like the Robinsons Galleria South it has a 4th floor and also it

can occupy a lot of people. Now to the how small business makes money they just only have

a few personnel or employee so that the owner will not be bankrupt just only paying for them.

Well as the researchers said they can raise their employees but only if the business itself is

also improving or growing. It is also stated in Denise Leigh Gandy’s study (2014), that some

strategies of small-scale businesses for company profitability of sustainability are: Knowing

the seasonality of a business and Hiring the appropriate employees. Knowing the seasonality

means that your product must be on the trend or in the season so that the probability of

costumers coming up to your business is higher. Hiring the appropriate employees means that

the employees you are hiring is good at your business and have a qualified. Also, in Foreign

Literature MD Kamrul Islam states that one of the disadvantages of small business is that they

can negotiate to the international companies. Which is true in real life and also to our

situation because they don’t have enough money not like to the Robinsons Galleria South

which have a lot of international company’s alliances.

In Cedric Salazar’s study he states that when the competition starts the small businesses have

to face and face a lot competition. And that can face the competitions is also facing risks such as

elimination of the businesses or low profits. He also added that the effects of the competition to

small businesses might be loss to their profits and worst elimination.

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CHAPTER 3

RESEARCH MTHODOLOGY

POPULATION AND SAMPLE

A population is a complete set of people with a specialized set of characteristics, and

a sample is a subset of the population. (e.g. schizophrenics in the researcher's town)

In this study our target population is the small business since it is one of our

variables. The total number of Small businesses that is establish in Barangay Landayan is 10-

20 businesses. With the use of Slovan’s formula we’re be able to know what is our sample

size. The formula gives us an answer of 3.33 or 3 samplings. Therefore, in small businesses

owner’s population, we are only having 3 samplings or sample size. Next population is the

population of consumer respondents, the total number of consumers respondents is 1000

per week and it is actually based on consumers perspective. Again, with the help of Slovan’s

formula we’re be able to know the sample size of the population of the consumer

respondents. The formula gave us an answer of 3.98 or 4 samplings. therefore, in consumers

respondents we are only having 4 samples or sample size. This study employed purposive
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sampling technique, specifically, the extreme (or deviant) cases which are useful because

they often provide significant insight into the phenomenon being studied. The main goal of

this sampling technique is to focus on the particular group of people who can provide

relevant information about the research being conducted.

The researchers opted to use consumers and business owners around Baranggay Landayan

as the respondents of this study for their significance to the research being performed. The

opinions of small business owners around Baranggay Landayan are useful for this study

because they are the ones who can help the researchers in finding out the effects of

Robinsons Galleria South to their business, after all, they are the ones who are experiencing

it.

RESPONDENTS DESCRIPTIONS

The respondents for consumer are we considered all consumers in barangay Landayan

and we are only going to randomly conduct our survey to 4 respondents for consumers. All of

them must be a consumer of small business in barangay Landayan and Robinsons Galleria

South. Also, they are not going to Robinsons Galleria South for the airconditioned place but

for the products that is there.

The respondents to the small business owners must have their own business name,

business permit, and also their shop location that is must be in the crossing of the Barangay

Landayan up to the end point of the barangay Landayan which is the arc. We are going to

randomly get 3 small businesses in Barangay that passed our requirements for our criteria

and also give us the permission to know their profits for some months.
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RESEARCH INSTRUMENT

The research instrument that is used in this study is a survey questionnaire that is made by

the researchers. The researches based the questionnaires on some of our related literatures

and also to the researcher’s perspective. In this study there is 2 kinds of questionnaire for 2

of our sample respondents. The first questionnaire is for our 4 randomly chosen consumer

respondents. Which is the type of this questionnaire being a multiple choice. In this

questionnaire the consumer respondents only need to mark a check to the given boxes for

their answers.

The second questionnaire is for our 3 small businesses that have are criteria to be our

respondents. In this questionnaire its actually divided into 2 types which is a multiple choice

and an open question. There is actually 3 open questions and 3 multiple choices. The same

way to the consumer’s questionnaire the respondents marks a check to the given boxes for

their answers in the multiple-choice type. While provide an opinion to the open questions as

answers. There are actually 2 questions that is optional for the business questionnaire which

is a question that is we’re looking for a profit. It is actually to the respondents if they are going

to give that to us or not.

DATA GATHERING AND PROCEDURE

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The first thing that we are going to do before we conduct the survey is preparing the

questionnaires. When we are done preparing the questionnaires the researches will be

divided into 2 groups that will survey the consumers and also will survey the small businesses.

In that way we will be able to make our survey faster and easier. We are going to conduct our

survey when the mass to the church is done and also on Fridays or Sundays because it is where

we have a lot of choices to who will be our respondents. For the consumer survey

questionnaire, the researchers will randomly survey 4 consumer that is perfectly candidates

to answer our survey questionnaire. While for the small business owners survey

questionnaire, the researchers will survey 3 small business owners that have our criteria for

us to conduct a survey to them.

After conducting our survey, we will gather the data or information’s and then analyze the

data and make a list the possible effects of Robinsons Galleria South to the Small businesses

in Barangay Landayan. The gathered information is enough for us to make some conclusions

of our study.

STATISTICAL TREATMENT OF DATA

The researchers will use different type of statistical treatment for the data which will help

the researchers to make a conclusion with the help of statistically analyzed data. With the

help of statistical treatments of data, the researchers will be able to make use of the data in

the right form. Raw data collection is only one aspect of any experiment; the organization of
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data is equally important so that appropriate conclusions can be drawn. This is

what statistical treatment of data is all about.

To know the effects of Robinsons Galleria south to the small businesses in Barangay

Landayan. to interpret the data effectively the researchers will be going to use descriptive

statistics and coding the categories in the open questions.

 With the use of percentage to the multiple-choice type of questions. The formula will

be:

FORMULA:

P= R/T x 100

Where: P= Percentage

R= number of the respondents with the same answer

T= Total respondents

With the use of coding the categories we will be able to know the answers to the open

questions that is in the small business survey questionnaires easier and be more organized.