Chapter I

THE PROBLEM AND THE SETTING

Introduction

A business is a repeatable process that creates and delivers something of value

that other people want or need at a price they are willing to pay in a way that satisfies

the customer’s needs and expectations, so that the business bring in enough profit;

enough profit to make worthwhile fort the owners to continue operation.

An individual starts engaging in a business to pursue their passion and see the

fruition of their vision, control their time, learn and gain knowledge, experience business

highs and lows, to gain incredible feeling of fulfillment and confidence, earn so much

more and reap the full rewards, share their learnings and help the community, and win

the challenges. However, during this COVID-19 pandemic crisis, most of the businesses

were under severe stress leading to practical challenges.

In Poblacion, Polomolok South Cotabato, many business owners suffered

challenges, and this unprecedented coronavirus crisis has caused destruction. ( ADB )

ASIAN Development Bank ( 2020 ) survey stated that the enhanced community

quarantine and other quarantine and lockdown measures ( henceforth referred to as

ECQ , dramatically limited business activities throughout much of the Philippines. After

16 March lockdown of the NCR, Calabarzon and other regions, most business

establishments faced the immediate closure of business or limitation of business

operations. According to the survey, 65.9% of enterprises surveyed temporily closed

their business after ECQ came into effect. Limited operations continued in 29.1% of the
enterprises surveyed. Among those with limited operations, one fifth reported more than

50% of their business continued, while 78.4% reported less than 50% of their business

operation. Only 4% of those surveyed remained fully opened. Meanwhile, 11% closed

permanently.

There are newly-opened businesses in Poblacion, Polomolok south Coabato who

remained afloat despite the challenges of the coronavirus pandemic. However, a huge

number of businesses are still struggling and some collapsed.

This study will be focusing on the challenges in the newly opened business

establishments in Poblacion, Polomolok South Cotabato. The researchers are

interested in finding economic relief and program that can be extended to support

businesses owners,

Statement of the problem

This study aimed to determine the Challenges in the Newly-Opened Business

Establishments in Poblacion Polomolok amidst COVID-19 Pandemic: Basis for business

sustainability program.

1. What are the challenges in the newly-opened business establishments in

Poblacion Polomolok amidst COVID-19 pandemic?

1.1 Keeping existing customers

1.2 Health and safety regulations

1.3 Self doubt and fear

1.4 Financial issues

1.5 Digitalization
 2. What business sustainability program may be proposed?

Theoritical Framework

From time to time, organizational environments undergo cataclysmic upheavals –

changes so sudden and extensive that they alter the trajectories of entire industries,

overwhelm the adaptive capacities resilient organizations, and surpass the

comprehension of seasoned managers. (Meyer et al., 1990, p. 93)

This quote, written 30 years ago, describes the pandemic environment in which

the world exists today. As Meyer et al. (1990) explained, such quantum discontinuous

changes require entrepreneurial responses. In the ongoing Covid-19 pandemic, firms

must devise strategies to deal with short-term discontinuities and significant uncertainty

to survive. After the pandemic eases, longer-term strategic changes may be needed to

navigate the competitive landscape arising in the ‘New Normal’ which has resulted from

technological, socio-political, and institutional changes (Ahlstrom et al., 2020) that

resemble the causes of environmental jolts explained by Meyer et al. (1990). This New

Normal is unlikely to be a static equilibrium, because the pandemic shock has triggered

another unexpected dynamic. As Nobel Laurete Douglass North (1999) explained, we

now exist in a non-ergodic world in which the new equilibrium after major disruptions

continues to change thereafter, similar to dynamic equilibria in open systems. Thus,

firms need new and more flexible strategies to achieve what North described as

adaptive efficiency. While it is unclear which changes caused by the pandemic will

persist, it seems evident that certain aspects of the business environment will change

with the current crisis serving as a tipping point. Hence, this new environment (during

the pandemic and thereafter) begs the question ‘How does strategic management
theory help us understand how firms navigate the New Normal?’. We examine two main

strategic management theories prominent in the field for the last three decades –

resource-based theory and agency theory – in light of the opportunities and challenges

likely to emerge in the non-ergodic New Normal environment, and comment on

implications for strategic management more broadly.

Resource-Based Theory

We begin with one strategic management’s most influential theoretical

perspective, resource-based theory (RBT). Although the disruption has been more

significant for some firms and industries and others, firm resources are critical for

surviving the pandemic and the resulting economic disruption. In the short term,

financial resources are needed for survival. Because of the Lockdowns and severe

recession, many firms suffered severe declines in revenue and as a result, experienced

significant cash-flow problems. Thus, they have had to deplete cash reserves or access

cash from other resources (e.g., leverage and/or the sale of assets) to remain solvent.

For many firms, survival (i.e., existing competitive advantage and its value

appropriation) has become a more pressing concern than long-term sustainable

competitive advantage from valuable, rare, inimitable, and non-substitutable (VRIN)

resources. This short-term shift in priorities has been strengthened by the threat-rigidity

effect, which suggests that firms respond to challenges by curtailing new innovation and

narrowing their focus to what has worked in the past (Straw et al., 1981). As a result,

many firms have curtailed risk taking and reduced their focus on long-term strategic

commitments in favour of short-term objectives, primarily focusing on survival.

Yet, firms also must prepare for the New Normal environment that will ensue in the

post-pandemic period. Many firms have shown an ability to adapt to the pandemic in

short term, but they likely will require different resources and new ways to use them in

the long-term. Thus, resource orchestration takes on added importance. Firms may

require more flexible resources and new capabilities to compete in the new environment

which includes a rapidly changing competitive landscape. Firms may need to focus less

on resource attributes (VRIN) and more on routines and processes that allow them to

reconfigure resources and capabilities to operate effectively in the new environment, in

order to achieve the adaptive efficiency envisioned by North (1999). Commonly,

routines evolve over time as firms learn what is needed to adapt. However, when

environmental jolts and disruption occur, routines also must change quickly to allow

firms to acquire/develop new resources and bundle them to create new capabilities

rapidly (Sirmon et al., 2007, 2011). Thus, firms must possess or rapidly develop

dynamic capabilities to manage their resources more flexibly and effectively (Eisenhardt

and Martin, 2020; Teese, 2007).

Fixed assets, especially those that are location bound, historically have been viewed as

a source of competitive advantage. However, these assets are difficult to redeploy for

alternative uses. Some firms may need to obtain more liquid and adaptable resources,

which can support the reconfiguration of other resources. As one example, the stock of

expensive office space, stores, or market-seeking resources that firms have developed

over decades may be less essential or may become a liability in the pandemic and post-

pandemic environment, as employees and customers become increasingly willing and

able to perform activities (e.g., work and make purchases) remotely. Because intangible
resources often are more flexible, they likely will take on added importance. Technology

and human capital are perhaps the most critical resources on which redeployment and

reconfiguration efforts depend. Thus, they may be critical for creating new capabilities to

deal with the expected uncertainty in the New Normal environment. For example,

Rindova and Courtney (2020) argued that firms can develop adaptive strategies or

shaping strategies to deal with uncertainty. Whereas, adaptive strategies help firms to

identify attributes of uncertain markets and environments and to design ways to

respond, shaping strategies help firms to identify opportunities created by the

uncertainties and exploit them proactively (Eisenhardt, in press). Ironically, although

firms must innovate to compete in the New Normal environment, the economic

recession and decline in the collocation of human capital (e.g., due to the increase in

remote workers) has made innovation more difficult. Thus, although shaping strategies

might be more important in the longer term, they also are more challenging and riskier

Conceptual Framework

The input-process-output model will be utilized to understand and document the

process. The framework is based on the classic theory, which states that the general

structure of a system is as important in determining how effectively it will function as its

individual components. Similarly, the IPO model has a causal structure, in that outputs

are a function of various group processes, which are in turn influenced by numerous

input variables.

This study utilized Input-Process-Output (IPO) framework in which, all newly

opened business owners who were purposively selected as respondents answered a

questionnaire that seeks information on the challenges in the newly opened business
establishments amidst pandemic, which served as input. As part of the process, the

result of the questionnaire are subjected to statistical analysis and presented in tables,

in which the identified challenges in the newly opened business will be carefully

analyzed, interpreted and discussed. Then the result of the analysis served as basis for

developing a proposed business sustainability program activities for the business

owners which presented as an output of the study.

Figure 1 on page 5 shows the schematic presentation of the conceptual

framework of the study. The first box represents the New Opened Business Owners as

the respondents, the second box represents the Challenges in the newly opened

business establishments amidst pandemic and the third box represents the developing

of sustainability program, to help the businesses to stay afloat.

Newly opened business owners were referred to as the respondents of the study.

Challenges in the Newly Opened Business Establishment refers to the possible

challenges in the newly opened businesses amidst pandemic.

Proposed Business Sustainability Program refer to the kind of program that

should be included in the Business Sustainability Program for business establishments

in order for the business owners to understand and adjust with the challenges.

INPUT PROCESS OUTPUT

Challenges in the Newly

Opened Business Proposed Sustainability
Newly Opened Business
Establishments in Program for Newly
Owners in Poblacion
Poblacion Polomolok Opened Business Owners
Polomolok
amidst COVID-19 in Poblacion Polomolok
Pandemic
 Figure 1. Conceptual Framework

Significance of the Study

The researchers believed that the study will help the following individuals:

To the Researches, this study is relevant to their field of specialization:

Bachelor of Science Business Administration major in Operations Management

To the Teachers, the result of this study will be useful to the teachers as this can

be their basis in enhancing the learning of the students in Business.

To the Learners, this study will help the learners to improve their learning in

Business.

To Notre Dame Siena College of Polomolok, the result of this study could be

useful to their management. This could be a basis for school administrators in improving

the learning of the pupils in the field of Business during pandemic.

To the future Researchers, this study may serve as a guide for other

researchers who wish to conduct further research on topics that are the same nature

with this study.

Scope and Delimitation of the Study

 The intent of the study is to know the challenges in the newly-opened businesses

during this time of pandemic. This involves a survey for those business owners in

Poblacion whose business is to be located within Poblacion Polomolok.

The research covers a thorough knowledge of problems that newly-opened

businesses are facing. The research can provide ways and possible solutions to assist

businesses to stay functional despite the pandemic.

Definition of Terms

These terms are defined conceptually and operationally in order to know the

meaning of each term theoretically and to know the usage of these terms in the study.

Challenges. Conceptually, this refers to a stimulating tasks or problem that is

often threatening, provocative or inciting that could prevent the development or creation

of a solution. Operationally, challenges are current or long term problems and issues

faced by a business and it is the main focus of the study.

Digitazation. Conceptually, this refers to the automation of the existing manual

and paper-based processes, enabled by digitization of information; from an analog to

digital format. Operationally, this refers to one of the indicators on the challenges in the

newly-opened business establishments in Poblacion Polomolok amidst COVI-19

pandemic.

Sustainability Program. Conceptually, this incorporate all building stakeholders

into the design process, promoting awareness, goal development, implementation,

acceptance and effectiveness of facility sustainability efforts. Operationally, this refers to

the program or plan to create financial, societal, and environmental sustainability.

 Financial challenge. Conceptually, this refers to any money issue or problem

that makes it hard to pay for something or plan for the future. Operationally, this refers

to one of the indicators on the challenges in the newly-opened business in Poblacion

Polomolok amidst pandemic.

Business owners. Conceptually, this refers to the legal proprietor of a business.

Operationally, business owners are the respondents of the study where the researcher

will get the data they need to study.

Pandemic. Coceptually, this refers to the disease outbreak that spreads across

countries or continents. Operationally

Chapter II

REVIEW OF RELATED LITERATURE AND RELATED STUDIES

 Chapter III

METHODOLOGY

This chapter presents the research design, research locale, research

respondents and sampling procedure, research instrumentation, validity and reliability of

questionnaires, data gathering procedure, ethical issues, data analysis, and statistical

tools.

Research Design

This study will utilize a quantitative descriptive case study research design. This

study will use quantitative because it will emphasize objective measurements. It will

include statistical, mathematical or numerical in analyzing the data to be collected

through the survey questionnaires. This study is descriptive because it will explain the

result through descriptions. Survey questionnaire checklist will be used as the main

research instrument in gathering the data of Challenges in the Newly-opened Business

Establishments in Poblacion, Polomolok: Basis for Business Sustainability Program.

Research Locale

This study will be conducted at Barangay Poblacion, Polomolok,South Cotabato

Year 2020-2021.

Respondents of the Study

The respondents of the study will be the business owners of the newly opened

business establishments in Poblacion, Polomolok, South Cotabato. They will be chosen

as respondents after satisfying the following criteria: firstly, that they are business
owners of the registered newly-opened business establishments during the this time of

pandemic. Secondly, that their businesses are still currently operating in Poblacion,

Polomolok. Lastly, they are business owners who continue operating despite the

pandemic

Sampling Techniques

Purposive sampling technique will be used in the determination of respondents.

The main objective of this sampling is that we the researcher, with good decision and

appropriate policy, we chose those elements which are meant for fulfilling the research

objective. This is also ideal for case study research.

Research Instrumentation

To gather the needed data, the researcher will use a self-made survey

questionnaire with the following indicators. These are: Health and Safety Regulation

Lost Money Management, Lockdowns, Permanent Closure, Digitalization.

Validity and Reliability of Questionnaires

The instrument that will be used in conducting the study will be self-made

questionnaire. It will be subjected to validation by experts for further comments and

suggestions to ensure validity. This will be done to suit the questionnaire to the

environment where the study will be conducted. It will be presented to the group of

persons by virtue of their expertise and qualification. The validators will be given copies

of the instrument and the corrections and suggestions will be integrated in the

questionnaire before it will be reproduced and distributed to the respondents.

Data Gathering Procedure

To facilitate the collection of data, the following steps were taken:

1. A letter of request will be sent to the Principal of Notre Dame Siena College of

Polomolok to ask for permission to allow the researcher to conduct survyes;

2. The researchers will inform the adviser of approval of the above request;

3. The researchers will prepare an adequate number of copies for the number of

respondents involved and will ensure that each respondent will receive a

complete set;

4. The questionnaires will be administered by the help of the adviser and will be

retrieved right after the scheduled date and time as agreed by both parties;

5. The researcher will retrieve the questionnaires through the help of the class

adviser;

6. The data will be tabulated, encode and processed through the help of a

Statistician using a Microsoft Excel;

7. Finding will be extracted and analyzed based on the processed data;

8. Results of the study will be interpreted to arrive at the conclusions and

recommendations.

Ethical Issues

Since the respondents of the research are Business owners of newly opened

business establishment in Poblacion, broad ethical areas must be considered. The

businesses owners will be strictly imposed. Researchers will seek the consent of the

businesses to conduct the study.

Data Analysis

Upon the retrieval of the instrument, the researchers will prepare the instrument,

the researchers will tally all the answers based on manual scoring to determine the

frequency counts of the challenges in the newly opened business establishment in

Poblacion.

To determine the challenges in the newly-opened business establishments, the

options are, 5 – Always; 4 – Often; 3 – Sometimes; 2 – Rarely; 1 - Never. Typically, the

lowest score on the scale determine the challenge that affects most the business in

Poblacion.

To analyze the challenges, the researchers will prepare the following indicators:

Lockdown, Health and Safety Regulation Strategies, Digitalization Challenge, Money

Management, and Permanent Closure.

In interpreting quantitative data for the average mean of the challenges, the

researcher will utilize the following range based on the standardized rule in rounding-off

numbers:

5.0 – 4.5 Always

4.4 – 3.5 Often

3.4 – 2.5 Sometimes

2.4 – 1.5 Rarely

1.4 – 1.0 Never

Statistical Treatment
 The statistical treatment that will be used in the interpretation of the data is

frequency, mean, and weighted mean.

Frequency counts will be used to tally the responses of the respondents to the items in

the instrument fo the challenges in the newly-opened business establishments.

Mean will be used to determine the mean score of each statement. The tally of

each options in each statement are will be multiplied by its frequency, after multiplying it

the researcher add all the total scores in each option, and it will be divided by the total

number of the Business owner in Poblacion, Polomolok in order to get the mean score

of the each statement.

Weighted mean will be used to determine the average mean score of each

challenge. All mean score will be added and it will divided by the total number of

Business owners in Poblacion, Polomolok to get the average mean of each challenge.