A Proposed Strategic Plan for Island Photo Center Inc.

1
Chapter 1
Executive Summary
1.1 Objectives
The main objective of this study is to formulate strategies that would help Island
Photo Center Glorietta 4 branch increase the company’s total sales by 10% annually in
the years 2013, 2014 and 2015.
1.2 Research Design and Methodology
The researchers used a descriptive type of research for this study. This study is a
declarative proposition that commonly predicts the existence, size, form or distribution
of variables or characterizes what is typical in a group. To obtain the primary data, a
series of observations to the retail store, personal interviews with the owner and
company’s employees were conducted. Sources for secondary data were gathered from
books, internet and journal articles.
The type of non-probability sampling that the researchers used is the judgmental
sampling wherein they only chose the person who is appropriate for the study. The
researchers used Slovene’s Formula to compute the number of respondents for the
survey questionnaires. Survey questionnaires were given to 100 existing customers and
100 potential consumers in order for the researchers to know the advantages and
disadvantages of the company.
Through these methods, the data that were gathered by the research were analyzed
and digested for the study. It was tabulated and measured in a way that the researchers

2
could analyze the given results. The research design and methodology results helped
the researchers identify the possible strategies with a strong basis and be able to
recommend it to the company.
1.3 Major Findings
One of the major key findings in this study is the glaring decline of sales of Island
Photo Center Glorietta 4 branch. The researchers found out that the downward slope in
sales is caused by the change in consumer behavior in such a way that most people
nowadays do not usually print pictures in imaging centers. In addition, Island Photo
Center could not catch up with the fast-paced advancement of technology in such a way
that it cannot go with the flow of technology through taking advantage of the current
opportunities and trends present in the society and business world such as doing tie-
ups and engaging business through online.
Moreover, another factor that aggravates the decline of sales is that Island Photo
Center’s centralized and conservative management of the owner does not try or to
make an effort in order to improve the financial standing of the company. According to
the owner or general manager, it will be better if the company will stick to a traditional
business process because trying new things could only be risks to the company. The
owner does not take calculated risks in making such business decisions and she is not
planning and conducting marketing strategies for the company that could aid the
company in reaching its desired goals. Island Photo Center is not aggressive in
reaching their potential customers in such a way that they still stick to the traditional
business mindset which is the customers goes to them. In today’s setting, Island Photo

3
Center should be the one to make a move aggressively in reaching their existing and
potential customers.
Island Photo Center needs to provide customers and potential consumers a
consistent and compelling business-consumer relationship before, during and after
purchases. It also needs to make tedious arrangements within their store and focus on
conducting unique and essential marketing strategies. It is relatively old in the industry,
having 45 years of experience but due to lack of marketing strategies, Island Photo
Center is becoming stagnant in such a way that there is no improvement in its business
process itself, Island Photo Center’s management is not trying to make such effort and
calculated risks to alleviate the inefficient financial standing and they not trying to aim
high or provide solutions to overcome the problem. According to the survey conducted
on what imaging center is most often visited by potential consumers, Picture City was
ranked 1st, Tronix Imaging Center was ranked 2nd, Kodak or General Photo Express
was ranked 3rd and Island Photo Center was only ranked in 4th place.
1.4 Recommended Strategy and Policies
Island Photo Center only settles with word-of-mouth and x-deal which is definitely
not enough to have a good financial status. Moreover, due to the speed of technology,
people nowadays have the option not to obtain photographs anymore. Hence, Island
Photo Center needs to make an effort in reaching their customers and potential
consumers. There are several promotional and internal processing strategies that were
recommended by the researchers in this study such as generating new source of

4
income, expanding distribution, managing retail store display, inventory management
and attracting, maintaining and enhancing customer relationships.
The researchers recommended Island Photo Center Glorietta 4 branch to
generate a new source of income because Island Photo Center needs to diversify or
look for a new way of producing income and not be dependent on its generated income
from the retail store. This can be achieved through providing products and services of
Island Photo Center as corporate giveaways to businesses and tying up with events in
Makati City in order to emphasize Island Photo Center’s other products and services.
Moreover, the researchers suggested Island Photo Center Glorietta 4 branch to
expand its distribution in order to reach and access untapped markets outside the scope
of Glorietta 4 branch. This can be attained by creating a website which includes an
online ordering system that will be convenient to consumers and adding sales personnel
in order to form a lifelong harmonious business-consumer relationship or interaction.
Lastly, the researchers recommend Island Photo Center Glorietta 4 branch to
manage or improve its retail store display because its ineffective retail store display is a
definitely a negative factor in acquiring and attracting potential consumers. This can be
accomplished by means of providing good merchandising display and providing good
store ambiance.

5
CHAPTER 2
Introduction of the Study
2.1 Background of the study
The digital photographic industry comprises of a wide-range of digital imaging
firms such as camera manufacturing businesses, professional photo studios and
imaging centers. An imaging center is an imaging and digital photo service provider. It is
a facility with the necessary equipment to produce various types of image and
professional staff to interpret the images obtained. Currently, there are several services
offered in an imaging center including digital photo printing, studio services,
personalized photo cards, camera phone printing, photo restoration, manipulation and
editing, etc. Mostly of these imaging center outlets are concentrated in malls and
commercial establishments around the country. (Batchen, 2009)
People need photographs to capture special moments of their lives. Photographs
is one of the instruments to use when people want to look back and reminisce the past.
During the 80’s and 90’s, the printing of photos became popular, when people take
pictures; they will automatically go to an imaging center to print their pictures. But with
the advent of technological advancements in 2000’s especially in the recent time, most
people are not into printing photographs anymore because they now have the option
just to upload it on social networking sites. (Grundberg, 2008)
Lister (2007) states that in general, the imaging center firms are one of the lowest
businesses in terms of profitability as of the moment because of the constant innovation

6
in technology and customers’ preferences. In fact, only a maximum of 3.4% is the
increase of imaging centers growth rate every year in the Philippines. When people
already have a gadget with camera and a computer printer, it is necessarily not to go an
imaging center anymore. When people take pictures with their own digital photo
gadgets, most of them just save it in the computer or upload it in the Internet and there’s
no use of printing it anymore.
However, Penny (2010) states that printed photos are a great way to back up
your digital collection. Many people all have stories of computers and hard-drives failing
and losing photographs. But by printing, at least some people have some sort of
backup. Moreover, he added that the best way to share photos is to print them and give
them to people, or look together and tell stories about the photos you took. Printed
photos tell a story from your life, whether it is a family vacation, wedding or event, or just
a random day. They allow you to pass those memories on to your friends and family.
Even as we all grow older, those memories last forever.
Printed photographs can invoke much more emotion than staring at a computer
screen or any gadget and by holding a photograph in your hand it makes the memory
that much more real and tangible. He also added that people still avail studio services
such studio portraits, I.D. photo services and passport services for the reason of
formality. In the present times, there are still advantages of going to a digital photo
studio or imaging center like having much easier effort for obtaining photographs and
easier effort of printing it. Some consumers still believe that imaging center firms
provide fast, affordable and higher quality of taking pictures or printing photos and if

7
they will just do it on their own, it will be just tiresome, costly and the result of the printed
photographs is in a bad quality.
Ritchin (2009) states that there are more in an imaging center nowadays, it is not
just a photo and printing service provider, it also offer creative photographic services
such as oil painting, caricature, mouse pads, puzzles, photo switching, model couture
contests and other photographic services which will cater the infinite needs and wants
of consumers. In fact, modern imaging centers are now trying to venture in videography
like making trailers, wedding and marriage proposal, family reunion, graduation videos,
etc.
The pioneers of photography in the Philippines were Western photographers,
mostly from Europe. The practice of taking photographs and the opening of the first
photo studios in Spanish Philippines, from the 1840’s to the 1890’s, were driven by the
following reasons: photographs were used as a medium of news and information about
the colony, as a tool for tourism, as an instrument for anthropology, as a means for
asserting social status, as an implement for historical documentation, as a device for
communication, as materials for propaganda, and as a source of ideas
for illustrations and engravings. The practice of photography in the Philippines was not
without the influence and influx of Western-art concepts into the colonized archipelago.
(Velasco, 2007)
The first imaging center in the Philippines was established during the 1970’s. And
then continue to arise during the 1980’s. This is due to the first establishment of Kodak
here in the Philippines. Since then, many Filipino people are attracted in photo printing.

8
The decline of imaging center firms in terms of sales and profitability started during the
2000’s where technological modernization such as Internet started to invade. Various
imaging center firms began to close down this late 2000’s. Velasco (2007) stated that
one reason that people are not into printing pictures or obtaining photographs in
imaging centers because people just tend to stay at home and they have the option to
just upload pictures online.
But there are still people who valued the essence of photo printing for tangible
pictures provide real memories. In the advent of technological advancements, the
challenge for the imaging center firms is to adopt certain changes in its system and the
increase of marketing strategies in order to maintain their life cycle to the maturity stage
in the digital imaging industry and to entice consumers in printing photographs and
availing various photographic products and services. Today in the Philippines, the
growing trend for imaging centers are photo booths, online distribution channels for
availing products and services, etc. (Ramos, 2007)
This study is concerned in identifying and comparing the different buying
behaviors of Filipino consumers and the recent marketing practices adopted by imaging
centers in relation with the four P’s of marketing. Island Photo Center Incorporated is
one of the imaging center firms in the Philippines. Island Photo Center Inc. is good at
customer assistance. They provide them information that the customers need especially
about cameras. They do not stop looking for ways to meet the customer’s needs and
wants. But unfortunately, it is one of the imaging center firms that are negatively affected
of changing customer’s tastes and preferences specifically of not printing or seldom
printing of photographs. This study is also about identifying the problems Island Photo

9
Center Incorporated is facing internally and externally and finding ways to solve it by
formulating effective marketing strategies that will increase the sales of the business.
2.1.1 Definition of the Problem
The researchers studied Island Photo Center, Inc. Glorietta 4 branch by
conducting interviews and surveys, visiting the shop and being one of its customers.
The researchers found out that there are problems that prohibiting this company to
acquire its greatest potential.
There is an intense competition between Island Photo with other imaging centers
that offer the same products and services particularly inside the mall and nearby shops
outside the mall. The nearest competitors in terms of location are Kodak Photo Express
and Photoline. Other direct competitors which are situated outside Glorietta 3 and 4 are
Digital Studio, Picture City and Tronix Imaging Center. Island Photo Center also
competes with appliance centers, and other Information Technology and Electronic
stores and digital photo printing businesses. The competition on the digital photo
printing industry is intense and the quality of products and services differentiate one
from another. What separates them is also their target market. Island Photo Center
targets Classes B and C while others such as Tronix Imaging Center targets Classes C
and D as said in our conducted interview.
The researchers based it on the 4P’s. The first one is on the product; this
includes the satisfaction you will get on the quality of their products and services, the
waiting time, and if the service is fast or slow. The second one was based on its price.
This includes the value for money. Logically, low price attract customers. Having this

10
works on the expectation that customers will switch to the business because of the low
price but it can also be the reason for a certain business to have no profit. Thirdly, was
based on the place. This includes the accessibility of the place and the physical layout
of the store. Lastly, it was based on the promotion. This includes how Island Photo
promotes their products and services. As of this moment, Island photo only promotes
their products and services through word of mouth and x-deal. Island Photo Center
Glorietta 4 branch is not conducting such promotional strategies which may affect their
projected sales. Their direct and indirect competitors are doing various sales promotions
while Island Photo Center is just settling on word-of-mouth and x-deal.
When people take pictures, it is all because they want to capture and preserve all
those precious memories especially when it is a special event or occasion. People
surely do not want to miss out those events by not having any record of it. Island Photo
Center is aware that imaging centers nowadays are not working that well compared
before because of the constant advancement in the technology. During those times,
people still use cameras with films when they take pictures and then they still need to
come and visit imaging centers just to print all those pictures taken. This caused the
sales of Island Photo Center Glorietta 4 branch to decrease.
Moreover, people nowadays are not fond of printing pictures anymore in imaging
centers because they have the option to just upload the pictures online. Ramos (2007)
stated that in order to arrest the decline of sales and profitability in imaging centers, they
must venture in new things such as having unique marketing strategies and they must
reach the consumers or potential customers personally to bring back the positive
consumer behavior of printing photographs. Despite of having a number of competitors

11
in the market today, Island Photo Center, Inc. remained competitive by offering and
extensive high quality of product line to the people.
Being one of the oldest imaging center in the Philippines, having 45 years of
experience in the industry, Island Photo Center, Inc. is still looking forward to offer more
products and services into the market while maintaining and improving quality of their
products and services which will attract more customers and will have a great
competitive advantage over its competitors by offering products and services that their
competitors cannot or do not offer since other people are not aware about the existence
of Island Photo Center.
In conclusion, the dilemma that Island Photo Center, Inc. is facing are regarding
the competition with other imaging centers, appliance centers, information technology
stores and digital photo printing businesses within and outside the vicinity and regarding
to the insufficient promotional strategies of Island Photo Center. Moreover, the problem
is also about the change of consumer behavior in such a way that consumers are just
seldom or not fond of printing photographs in imaging centers. Indeed, this prohibits the
acquirement of its maximum potential to serve its customers the best of their products
and services and continue their goal of “Helping you care for your memories”.
2.1.2 Objectives of the Study
The general objective of this study is to formulate strategies that would help
Island Photo Center Glorietta 4 branch increase the company’s total sales by 10%
annually in the years 2013, 2014 and 2015.

12
The specific objectives are the following:
 To increase retail sales by 10% in 3 years annually from 2013, 2014 and
2015
 To increase photofinishing service income by 10% in 3 years annually from
2013, 2014 and 2015
The researchers suggested that the overall percentage increase in total sales will be
10% year on year basis for the years 2013, 2014 and 2015. The researchers have not
used an upward percentage trend since they want to stabilize the growth rate for the
company within the selected years. The researchers will attain this by improving its
marketing and internal processes that would result to boosting of Island Photo Center’s
image by overtaking key competitors on its marketing strategies, product and service
quality and customer service, thus directly affecting Island Photo Center’s sales and for
the company to have an improved financial standing.
2.1.3 Research Design and Methodology Used
2.1.3.1 Type of Research Design
The research design that was used in this study was the descriptive research
design which can utilize the elements of both quantitative and qualitative research. The
researchers use the descriptive research design because it engages in development of
instruments for the measurements of many things, instruments that are employed in all
types of qualitative research as data-gathering instruments, for instance, tests,
questionnaires, interviews, observation schedules, etc.

13
The descriptive method is to describe the nature of a solution as it exists at the
time of the study, and to explore the causes of particular phenomena. Descriptive
research is an activity involving collection of data in order to test hypothesis or to
answer questions concerning the current status of the subject of the study. A descriptive
study determines and reports the way things are. (Castillo, 2008)
Descriptive research study is conducted to answer who, what, when, where and
how questions. Implicit in research is the fact that management already knows or
understands the underlying relationships of the problem area. Without knowledge of
relationships, descriptive research would have little value for decision makers.
(McDaniel & Gates, 2009)
The descriptive approach in gathering data was used to analyze and interpret the
information or data for the specific study. Combining all the information gathered from
the survey results and other sources, the researchers were able to determine if
additional strategies would require increasing their market share, customer and profits.
2.1.3.2 Sources of Primary and Secondary Data
Sources in primary data which includes the personal interview with the owner,
company’s information, sales and other issues within the company were gathered from
the interview of the owner, management and staffs. First-hand information was also
gathered from those people who answered the survey which gave the researchers the
needed information to formulate strategies.

14
While most of the secondary data were gathered from the word-of-mouth of
those satisfied and dissatisfied customers, articles and the internet. The data gathered
are believed to strengthen the study of the paper and enhance its credibility.
2.1.3.3 Survey Method
Two hundred (200) respondents which is 100 for existing and 100 for potential
consumers were conducted by distributing questionnaires in order to determine the
suitable actions, operations and marketing objectives needed by the company to
respond through customers’ tastes and preferences. The respondents are both male
and female, belonging to the social classes of B and C, aged 15 to 60. Through this
questionnaire, the researchers have been able to identify first-hand information on how
the researchers can analyze and evaluate the effectiveness of the proposed strategy.
2.1.3.4 Sampling Design
The researchers used non-probability sampling which is bound to study
populations where the actual number of people or things in the population is not that
precise. However, it is helpful for playing the part where the issues are determined and
identified with regards to the company. This sampling method is not that accurate since
it uses a subset of the population to represent the whole population but it will be enough
if it used carefully by choosing the appropriate person to answer the survey.
The type of non-probability sampling that is used in this research is the judgment
sampling. The researchers choose only the person that they think would be appropriate
for the study. It is used primarily when there is a limited number of a person that has
knowledge on the said products or services. These results obtained from a judgment

15
sample are subject to some degree of bias, due to the frame and population not being
identical. The frame is a list of all the units, items, people, etc. that define the population
to be studied .The sample groups that are chosen are the existing and potential
customers of the company that are best suited for this study. (Chisnall, 2007)
2.1.3.5 Questionnaire Design
The survey questionnaire was used as the main data-gathering instrument for
this study. The profile contains socio-demographic characteristics of the respondents
such as age, gender and personal monthly income. The questionnaire design used
closed-ended questions like dichotomous, multiple choice and likert scale methods to
have better knowledge of the company’s positioning toward its competitors, quality of
product and service, at the same time knowing the status of the consumer.
2.1.3.6 Data Gathering and Sampling Techniques
Slovene’s formula was used for determining the number of respondents for the
questionnaire. Slovene’s Formula is a process of selecting adequate representative
elements from the population. By studying the sample, the researchers were able to
make insight and conclusions for the entire population. In order to determine whether
questionnaire has played an important role in conducting the target market of Island
Photo, a total of 200 respondents were asked to participate. The participants qualified
for sample selection, both male and female and aged 15 to 60.
The approximate mall foot traffic population of Glorietta 4 for 2011 in a daily basis
is 216,200.

16
Estimated total mall foot traffic of Glorietta 4, Makati City in a daily basis
according to Ayala Land Glorietta 4 Customer Service Coordinator: 216,200
N = N
(1+N (e) ^ 2)
Where: n=Sample Size
N = Total Population
e = Margin of Error
Given: N = 216,200
e = 10%
Solution:
n = 216,200
1 + 216,200(.10) ^2
n = 216,200
2,163
n = 99.95 (100 respondents)
2.1.3.7 Data Analysis
Data gathered from the study and conducted through research served as
reference and the framework of the thesis. In data analysis of the research,
percentages, frequencies and getting the mean rating for questions are obtained. These

17
obtained percentages will then be analyzed and computed by the researchers and will
be used throughout the whole research. However, the information that was collected
through quantitative research comes only from the data collected during the research
period. The methodologies used determined the presumed outcome of the researchers
which helped them back up their paper.
2.1.4 Scope and Limitations of the Study
“The researchers provide limitations to identify potential weaknesses and
strength of the study.” (Churchill, 2006)
This study is mainly focused on having an increase in sales by formulating
marketing strategies on persuading buyers to amplify their order from the company. The
scope of the study is from the information gathered from the company as well as the
industry to where it belongs to creating a competent approach for its identified problem.
The scope of the study is focused on the problems that caused the decline of
sales and also the incorporate strategies that will give solution and to improve the
performance of the products and services offered by Island Photo Center Inc. for the
next few years of the company’s operations.
The coverage of the study is about the declining sales. In more detailed
information, the researchers will focus on the increase and decrease in the performance
of Island Photo Center Inc. and the factors behind the declining sales. The researchers
includes the financial statements which covers the year 2009, 2010, 2011 and involves
only the specific branch of Island Photo Center Inc. at 160 G/F Glorietta 4 Ayala Center,
San Lorenzo Village, Makati City. But for this specific research, the competitive analysis

18
covers General/Kodak Photo Express, Photoline, Picture City, and Tronix Imaging
Center which for the owner are considered top competitors of Island Photo Center.
The study is has been limited in studying specific factors of the company. The
researchers do not have the information regarding the market share of Island Photo
Center and its competitors since the management or owners themselves does not have
the information regarding it and there are no available sources regarding the market
share of imaging centers and total market size in the Philippines. The market share of
Island Photo Center was only based on the survey conducted.
In addition, the management of Island Photo Center did not have the data
regarding the breakdown of complete inventory and breakdown of sales specifically for
both retail sales and photofinishing service income like per a day because the person-
in-charge in their financial documents had recently resigned and the general manager
said that she had all the files regarding the sales. It was just based on the conducted
survey particularly to the question of what consumers usually avail in Island Photo
Center. According to the owner, stocks or inventory of Island Photo Center’s Park
Square 1 branch worth Php 1,000,000 will be transferred to Glorietta 4 branch that will
become effective starting 2013. Unfortunately, the Park Square 1 branch does not also
have the breakdown of the complete merchandising inventory. Findings of the study will
therefore, be true only for the subjects concerned and for the given period of the time.
The researchers’ main objectives are to determine the efficiency required from
the product, price, place and promotion of the Island Photo Center, Inc. The study has
been limited in studying specific factors of the company since the researchers only

19
covered one specific branch with formulated strategic goals for the firm. The study was
also limited to an output that the respondents from the selected company have
provided.
The researchers were not able to get the financial statement of the company for
2012 because it is not available yet according to the management and due to conflicting
time and schedules of the accountant. The financial forecasts for the years 2013, 2014
and 2015 were derived from the recent financial statement which is the year 2011 that
Island Photo Center provided for the researchers. The financial statements of Island
Photo Center Glorietta 4 branch is based in value and not in volume.
2.1.5 Definition of terms
Album - is a book with blank pages for the insertion and preservation of collections, as
of stamps, photographs, or autographs.
Analog Cameras – traditional or film cameras. In this instance, it can be construed to
mean "anything that is not digital".
Analog Photo Printing - producing printed pictures taken by camera that uses a
progressively changing recording medium, which may be either chemical process based
(e.g., photographic film or plate) or electronic (e.g., vidicon or CCD sensor).
Battery - two or more primary cells connected together, usually in series, to provide a
source of electric current.
Black and White Processing – producing monochrome pictures or executing pictures
with only a single color.
Broncolor Impaflex 600 – a flashlight system that offer a wide range of quality light that
give captured pictures more choice, control and precision which contribute to their
creativity.
Camera Accessories - subordinate or supplementary item or part of a camera,
used mainly for convenience, attractiveness, safety, etc. (e.g., tripod)

20
Camera Phone Printing – producing printed pictures taken by camera of phones by
means of inked type and a printing press.
Censor – a device that converts an optical image into an electronic signal. It is used
mostly in digital cameras, camera modules and other imaging devices.
Digital Cameras - cameras that takes video or still photographs by recording images on
an electronic image sensor.
Digital Photo Printing - producing printed pictures taken by camera by means of inked
type and a printing press.
File Saving – saving of pictures to CD, DVD, etc.
File Transfer - the movement of one or more files from one location to another. A
collection of electronically-stored files can be moved by physically moving the electronic
storage medium, such as a computer diskette, hard disk, or compact disk from one
place to another.
Film - a sequence of images of moving objects photographed by a camera and
providing the optical illusion of continuous movement when projected onto a screen.
Frame - border or case for enclosing a picture, etc.
ID Lamination - process of laminating structure that is arranged in thin layers.
Imaging Center - formerly called a photo center. It is a facility with the equipment to
produce various types of images and professional staff to interpret the images obtained.
Noritzu – an automated and high resolution inkjet printer used in imaging centers that
deliver amazing quality images.
Personalized Photo Card – a thick paper or thin board with picture made for or directed
or adjusted to a particular individual.
Photo Editing - processes of using tools to alter, manipulate, enhance and transform
images.
Photo Manipulation - backgrounds can be removed, added or altered. A photo montage
can be made, combining multiple photos into 1 unique heirloom depicting retrospectives
of a birth, marriage, anniversary etc.
Photo Mosaic – photos that have been divided into equal rectangular sections. Each of
which is replaced with another photograph that matches the target photo. When viewed
at low magnifications, the individual pixels appear as the primary image, while close

21
examination reveals that the image is in fact made up of many hundreds or thousands
of smaller images.
Photo Restoration – process for refurbishing faded, torn, stained or photographs to look
new or even better.
Photo Tiling – making enlargements of photographs up to 48” x 48” by combining
several 4R prints.
Slide Film Processing - a process of a film used in making slides. It is also known as
transparency film, positive film or reversal film processing. It uses photographic film that
can be processed to produce a positive transparent image for direct projection, rather
than a negative for printing.
Studio Services – variety of services offered by studio from rush I.D. pictures, portraits
of different sizes such as wallet size, 2R, 3R, 4R, 5R and more that requires a waiting
time of only 15 minutes or less.
Video Transfer – transmitting a sequence of still images representing scenes in motion.
Visatec's Solo 800 B - a self-contained photographic flash lighting unit. It has monolight
with patented bayonet, 300 J / 300 Ws flash energy, control range continuous over 3 f-
stops with rotary knob, built-in infrared sensitive photocell that can be switched off,
proportional or full modeling light, and internal discharge when power is reduced, dim
function of the modeling light. Monolight SOLO 800 B is used for longer flash
sequences.
Wood Framing – process of constructing a square or rectangular shape framework
made from wood that supports and protects a certain picture.

22
CHAPTER 3
The Company Profile
3.1 Vision/Mission
Vision
 To provide opportunities both for professional and financial growth for every
member of Island Photo Center Inc. family
 To ensure Total Customer Satisfaction, realizing the survival in the business is
due to customers’ support
 To become one of the top imaging center firms in the country
Mission
 To capture and preserve memories for the Filipino people
 To encourage people to suggest new ideas for continuous growth
 To nurture and promote trust, honesty, loyalty, fairness, concerns for property,
excellence, thrift, unity and camaraderie as prime virtues
 To help, by realizing its social obligation, communities in uplifting the quality of
life

23
3.2Goals
To make Island Photo Center the best photo imaging shop providing the top quality
products and services through:
 Providing consistent sincere and excellent service
 Being a conscientious and highly motivated professional team
 Providing exposure to training and personnel development
 Attaining "Customer Delight" through excellent customer service resulting in
business profits and growth
 Contributing to the growth of the photographic/imaging industry
3.3 Organization Structure
General
Manager
Marketing
Branch
Manager
Accounting and
Finance
Shop
Employees

24
3.4History (Establishment)
Island Photo is one of the oldest in the photo industry here in the Philippines,
having 45 years of experience, with its slogan “Helping you care for your memories”. It
started from the love story of Alfredo Ong Sr. & Virginia D. C. Ong.
Alfredo worked in a photo studio in Quiapo City as an all around like
salesman, messenger, stock-keeper, etc. He had this pretty neighbor named Virginia
who he really likes and wanted to be close to. That time the owners are looking for
someone who can handle all the finances. Since he wanted to be close to Virginia, he
recommended her for the job since she’s a Financial Management graduate. Eventually
they became close and fell in love with each other.
The Chinese owners of the photo studio liked how Alfredo works. So they gave
him enough capital to put up his own photo studio. With that money, they put up Island
Photo that started on March 17, 1967 in R. Hidalgo street Quiapo, Manila. Back then,
they did almost all the jobs and hired only a few employees and then trained them.

25
Since it was growing, one of his friends wanted to do partnership with them.
Island Photo then became a partnership business. But then they had a
misunderstanding in money because his partner’s wife accused them that Alfredo was
getting the large share from the profit. Instead of complicating the situation even more,
his wife, Virginia decided that they will buy the share of the partner.
It then had 42 branches in the country which are mostly located in SM
supermalls. They believe that if they have more branches, they can easily cater the
needs of people. It grew and became successful because Alfredo believes in T.H.I.F. or
trust, honesty, integrity, and fairness. They do not franchise and outsource. They
believe that there are right people for right position and they want to preserve the good
image of Island Photo.
Ever since the technologies made everyone’s life easy, the sales point became
low especially in photo printing. They were forced to close down some of their branches
especially those located in SM supermalls.
Last December 31, 2012, Island Photo Center needed to close down its Park
Square 1 branch since Park Square 1 building will be demolished. Today, they only
have 7 branches located in Greenhills, Glorietta 4, SM Manila, St. Francis Square Mall,
the two branches in Ilo-ilo which are in SM Ilo-ilo and Herrera, and the first branch which
is in Quiapo. It is now owned and facilitated by Alfredo and Virginia’s daughter, Mrs.
Imee Ong-Hallare. Island Photo Center Glorietta 4 branch is already 18 years in
existence in Makati City. The date of incorporation of Island Photo Center was on
October 29, 1971.

26
CHAPTER 4
The Company and Its External Environment
4.1 Environmental scanning
4.1.1 Socio-cultural
Life-style change is one of the socio-cultural variables that have a major impact
on Island Photo Center, Inc. Filipino people really love to take pictures. Ang (2003)
states that it is all because a picture tells a thousand words and it is an excellent way to
capture, preserve and document all those precious moments, highlights and milestones
in their life. People take pictures because they do not want to miss out those events by
not having any record of it.
In the present time, continuous advancement in technology is one of the factors
that change the lifestyle of the people. During those times when they still use cameras
using films, when they take pictures, they still need to come and visit imaging centers
just to print and see all those pictures taken. But now, because of the advancement in
technology, some people do not need to go to imaging center firms anymore because
they just save it on their computers, USB flash drive, CD’s, SD cards, upload it online or
just print it using their computer printers at home without realizing the negative effects it.
Attitude toward business is another socio-cultural variable that affect imaging
center firms. Sierrat, (2009) states that each business has an individual culture and
identity just like a person. Some people think that imaging center firms only offer photo
printing or studio services. But Island Photo Center, Inc. offers a wide or extensive

27
variety of products and services to its customers like customize pillow, mug, photo
mosaic, tarpaulin, invitations, cards, calendar, puzzle, t-shirt, tumbler, sticker, etc.
People also think that if they print in imaging center firms, it will take them an hour or
more for them to get the printed photos because of the traditional way of printing. In
Island Photo, it will just take them 15 minutes or less for them to get the printed photos
because of the advancement in technology.
One cultural factor that cannot be removed is that Filipinos are sentimental when
it comes to souvenirs. Filipinos want something that would remind them of a place, a
person, or occasion. Photo booths are also becoming popularized in events or
occasions. (Handy, 2011)
Attitude towards saving is another variable that affect the company negatively.
This change also shape the way people consume a particular product or services. A
Filipino person has a natural tendency to save money when purchasing products or
services. Modigliani (2006) state that usually, a person will go for what is cheaper or
they do not want to spend at all because consumers nowadays are sensitive with price.
That is why some people preferred not to go to imaging center firms anymore just to
print pictures because it will just cost them money.
4.1.2 Technological
New Products is one of the variables that affect Island Photo Center. George (1988)
stated that a certain innovations in technology will truly improve the operations of
imaging centers. New products are the strength of Island Photo Center, Inc. Some

28
people think that imaging centers only offer printing or studio services. Island photo
Center Inc. offers new products and services to its customers like customize pillow,
mug, photo mosaic, tarpaulin, invitations, cards, calendar, puzzle, t-shirt, tumbler,
sticker, etc. Island Photo is very practical when it comes to investing for machineries
that is why instead of having costs for buying new machineries, they do job-out. For job-
out, they make sure that the machineries of the firm doing the products for them are
updated and the quality of the finished product is high.
Productivity improvement through equipment used affects Island Photo Center Inc.
George (1988) states that technological advancement can create new markets; result in
the proliferation of new and improved products. Automation is very convenient in photo
printing nowadays. Unlike before in the traditional way, printing in the darkroom, is quite
different from developing negatives. To do so correctly you need some specialized,
although reasonably priced and easily available equipment. With the use of advanced
technology today, it can also increase the company’s production and improved the
quality of the product in a short phase of time because with automation comes efficiency
and speed. For Island Photo Center, they use digital machine chemicals such as
developer, bleach fix, P3 stabilizer and dryer. Two of their updated digital machines are
Broncolor impaflex 600, Visatec solo 800 and Censor.
Using internet as a factor of improving living standard is another technological factor
that helps Island Photo. The internet has made a fundamental impact in many lives of
people, thus making life easier. One factors deals with the aspect of communication and

29
it also increases the speed of distribution, it erase the limitation in reaching geographic
markets.
4.1.3. Economic
There are numerous economic variables that affect businesses today but in the case
of imaging centers in the Philippines, only a few affects them. One of these variables is
the inflation rate. Inflation rate directly affects the company in buying raw materials for
their products. If rises, they have no choice but to buy the materials at a higher price. As
of January 13, 2013, the inflation rate is measured at 2.9 which is 4.2 last January 12,
2012. This is good for Island Photo Center because goods will be of low price which will
not burden the company’s expense. The annual inflation rate of the Philippines over the
years is unstable. It fluctuates every year and shifts from high to low and vice-versa. .
When the general price level continues to fall, each unit of currency buys more
goods and services. Consequently, inflation also reflects and affects the real value in
the internal medium of exchange and unit of account in the economy. Low inflation rate
is good to the economy. They make it easy for companies to budget or plan long-term.
Low Inflation is a favorable situation for the company because if it rises, it can act as a
drag on productivity as companies are forced to shift resources away from products and
services in order to focus on profit and losses from currency inflation. And inflation can
impose hidden tax increases such as in the Ayala land business establishment rent
which can also greatly affect Island Photo Center Glorieta 4 branch.
The table below shows the current inflation rate measured using Consumer Price
Index (CPI).

30
Consumer Price Index
Period
Philippines
National Capital
Region
Areas Outside
NCR
Index
for All
Items
Inflation
Rate1
(%)
Index for
All Items
Inflation
Rate1 (%)
Index
for All
Items
Inflation
Rate1 (%)
2006=100
2012
December 131.3 2.9 125.4 2.8 133.2 2.9
November 131.4 2.8 125.5 2.6 133.3 2.9
October 131.3 3.1 125.4 2.9 133.2 3.3
September 131.4 3.6 125.5 3.5 133.3 3.7
August 131.5 3.8 126.4 4.5 133.1 3.6
July 130.5 3.2 124.9 3.1 132.3 3.2
June 130.1 2.8 124.1 2.2 132.0 3.0
May 129.5 2.9 123.4 2.2 131.4 3.1
April 129.4 3.0 123.5 2.5 131.3 3.2
March 128.4 2.6 123.1 2.7 130.0 2.6
February 128.1 2.7 122.9 2.3 129.7 2.8
January 128.1 4.0 122.8 3.5 129.7 4.0
2011 126.2 4.6 120.9 4.0 127.8 5.0
December 126.2 4.2 122.0 3.0 129.4 4.5
November 127.8 4.8 122.3 3.5 129.5 5.1
October 127.3 5.2 121.9 4.9 129.0 5.3
September 126.9 4.8 121.2 4.2 128.6 5.0
August 126.7 4.7 121.0 3.3 128.5 5.1
July 126.6 5.1 121.2 4.0 128.3 5.3
June 126.4 5.2 121.4 4.7 128.0 5.3
Source: National Statistics Office
Table 4.1.3.1

31
Figure 4.1.3.1
Table 4.1.3.2
Figure 4.1.3.2
The GDP or Gross Domestic product growth rate increases by 7.1% in the last
quarter of 2012. It means that the spending pattern of the people will be great since
people will have extra money to spend beside for their basic commodities. Island Photo
will benefit in this since they are an elastic demand. People will have the extra money to

32
avail the products and services of Island Photo. This could result to increase in sales of
the company.
The researchers will be using the four factors of production to explain how these
different factors affect the business. The factors of production are the building block of
the economy. These factors are what the people use to produce goods and services.
The researchers will be using the following factors of production: Stock, land, labor and
capital goods.
(1) Stock: In the case of Island Photo Center, their products may or may not be
affected by inflation or foreign exchange rate depending on the source of these
products. If these products were bought or purchase from other countries, it may
be affected by foreign exchange rate.
(2) Land: Land encompasses the physical space a company occupies. In the case of
Island Photo Center, this includes the space they rent in Glorietta 4. Island Photo
Center is in a contract with the said establishment, it means that they will not be
directly affected by the rise and fall of inflation rate because their rent is fixed for
the whole duration of the contract. Nor be affected by the movement of foreign
exchange rate since the business transacts in peso.
(3) Labor: Labor is often one of the largest expenses of a business and managing
this appropriately and efficiently is one of the hallmarks of a successful business.
In Island Photo Center, Glorietta 4 branch, they employed 8 individuals. Inflation
rate lessen the value of money. It may affect the employees because they may
demand for a higher salary. But since the inflation rate becomes low, 2.9 as of
January.13, 2013, it will be good for the employees and the business.

33
(4) Capital goods: Capital goods are durable goods that were purchased to be used
for the production of goods and services. Capital goods vary depending on the
type of business. For imaging centers like Island Photo Center, capital goods
includes the cameras and its accessories, printing machines, computers, and
other miscellaneous supplies like photo papers, ink, etc. Capital goods
depreciate over time. This means that if Island Photo Center is planning to buy a
machine that they will buy or purchase abroad then they will be affected by the
foreign exchange rate.
4.1.4 Political
To establish an imaging center firm here in the Philippines, the company must
comply with the numerous permits and licenses that must be passed. Not complying
with this requirement may come out with several violations in the law.
 Mayor’s Permit
 Bureau of Internal Revenue (BIR) – apply for a business taxpayer
identification number (TIN), register your books of accounts, point-of-sales
(POS) machines, photographic machineries and receipts
 Barangay Business Permit and Barangay Clearance
 Certificate of Occupancy
 Lease contract/tax declaration
 SSS certificate/clearance; and
 Community tax
 Fire Safety Inspection Certificate

34
 Environmental Compliance Certificate
As provided in the Philippine Constitution Article 8, Section 23: Eligibility
Requirements for the Procurement of Goods and Infrastructure Projects, Mayor’s permit
issued by the city or municipality is located at the place of business of the prospective
bidder. A Business Permit is required for every business to look forward to operate in
the Philippines. Depending on the principal location of the business is where you will
need to register for your business permit and Mayor’s permit. It can only be obtained
after the company has been registered with the Securities and Exchange Commission
(SEC), and you have a certificate of registration.
According to doingbusiness.org, “All persons subject for internal revenue taxes
are required to obtain a Taxpayer Identification Number (TIN) and register and keep
books of account. Persons with gross sales or receipt exceeding Php 150,000 in any
quarter must submit audited financial statements with their tax returns. The SEC
requires stock corporations with paid-up capital of at least Php 50,000 upon registration,
including branches of foreign corporations, to file the report of an independent Certified
Public Accountant (CPA) on their financial statements.”
Island Photo Center Inc. is located at Glorietta 4, Ayala Center, San Lorenzo
Village, Makati City. A Barangay Business Permit of San Lorenzo is needed to partly
secure the business and its location. To obtain a Barangay clearance, Island Photo
Center must obtain a community tax certificate. Island Photo Center Inc. is assessed a
basic and an additional community tax. Since Island Photo Center, Inc. is located inside

35
a shopping mall, there are retailing rules, regulations and guidelines that are needed to
follow for successful operation of business inside Glorietta 4.
According to Section 4 of Presidential Decree No. 1586, “Any project in the
Philippines that poses a potential environmental risk or a significant impact to the
environment is required to secure Environmental Compliance Certificates
(ECCs) from Department of the Environment and Natural Resources”. An ECC is a
certificate issued by DENR/Environmental Management Board after a positive review of
the ECC application. This certifies that based on the application of the proponent, the
proposed project or undertaking will not cause a significant negative impact on the
Philippines environment. For Island Photo Center Inc., they need to check and dispose
effectively the raw materials and chemicals in their products and services they use
because a DENR representative goes to them annually to check their chemicals they
are using and its processes in waste management.
4.2 Industry analysis
Porter’s 5 Forces of Competition
Porter’s 5
Forces
Low Moderate High
A. Rivalry
among existing
competing firms
B. Threat of new
entrants
C. Threat of
substitute
products
D. Bargaining
power of
suppliers

36
Table 4.2.1
4.2.1 Rivalry among competing firms
The competition of imaging centers is tight. They are finding ways for them to win
the consumers’ loyalty. Almost all the imaging centers are giving the same products and
services. Even some try to really lower their price in order to attract the consumers.
They are competing on who can give and maintain to the people their value for money.
Also people are focusing on the accessibility of location. That is the reason why some
firms are making sure they have branches in almost all malls like SM supermalls.
Maintaining the good image of a company to the consumers and still being profitable is
hard in this industry. Imaging centers are in cutthroat competition in trying to win the
consumers’ attention. Trying to remain in this industry is hard, thus making the rivalry
among competing firms is high.
4.2.2 Threat of new entrants
It is easy to enter the imaging center since franchising is available for
companies like Tronix Imaging Center. It is easier to invest in franchising rather than
creating a new name to the industry. Capital requirements to enter are high if they are
going to start a new name to the industry. One must need to search for suppliers of the
products and machineries. Unlike in franchising, all they need to do is buy the right for
franchising. After that, the company they are franchising will take care of the raw
materials and machineries needed to start the business. Although they are only
E. Bargaining
power of Buyers

37
franchising, they still need to maintain the machineries which is costly. Another barrier
to entry is the sufficient knowledge in the industry. One must know what or how his
products and services differ from his competitors and how develop it more. If ever the
franchised imaging center will exit the industry, it will be low since they can just leave
the industry without being affected that much. That is the reason why threat of new
entrants is moderate.
4.2.3 Threat of substitute products
Threat of substitute products is moderate since people have an option to just
take their pictures at their cameras or any other gadgets then print it at home or in
computer shops. It is way cheaper than going to imaging centers like Island Photo to
have their pictures develop. People just have to buy a glossy paper or photo paper and
if ever they need to edit it, they have photo editing software or applications. . Although,
other people still prefer to go to imaging centers to make sure the good quality in terms
of vibrancy of the pictures printed and also to avail other products and services. In
products like camera, they have the choice not to buy a camera like Digital SLR since
most cellular phones or other gadgets have camera. It is way cheaper than buying your
own Digital SLR camera which the cheapest one usually cost around P20, 000 – P30,
000. Even they buy a camera, they are just going to buy once or until the camera lasts.
But still, other people buy Digital SLR in order to capture good photographs. These
make the threat of substitute products in moderate. People will go to products or
services which will be way cheaper and will not cause any hassle to them.

38
4.2.4 Bargaining power of suppliers
Suppliers of papers for printing or developing pictures are numerous. It is easy to
shift from suppliers of papers and still has the same quality of paper. For instance,
Island Photo is using Kodak paper before but they changed it to Lucky paper and Digital
paper. Lucky paper and Digital paper are cheaper than Kodak paper and still can
produce the same quality of pictures. It is because they need to maintain the same price
for printing pictures but still produces the same quality in terms of vibrancy. For cameras
like digital SLR, there are several famous brands to choose from like Sony, LG, Canon,
Nikon, etc. There are other suppliers who can give the same camera brand but cheaper
by 20% because it is manufactured in China. It is still the same camera although it is
cheaper. For other products, Island Photo has at least 2 suppliers for products like
photo albums. The bargaining power of suppliers is moderate because most of the
imaging centers like Island Photo are not only confined into one supplier.
4.2.5 Bargaining power of buyers
The loyalty of the consumers depends on how those imaging centers can give to
them. They may easily change or switch where they can have their pictures taken, but
they still look for that imaging center that will not make them look that they are so white
or yellow in the picture. They want the same quality of pictures in a low or affordable
price. That is why it is important to maintain the same quality in terms of vibrancy at the
same price. Mitchell (2008) stated that “A vibrant quality of photograph has an improved
composition, improved contrast with well-defined shadow or highlight detail and has
boosted saturation”.

39
In case of buying cameras, consumers want someone who can explain well the
difference of each camera. They may ask you some information about that camera but
they will still shop around where they can buy it in the price they want. If that consumer
liked the quality of services or products you will give to them, they might refer you to
your friends. Bargaining power of buyers is high because consumers can easily switch
to another imaging center whenever they want to without risking that much.
4.3 Competitive analysis
4.3.1 Direct competitors
Island Photo Center’s direct competitors inside Glorietta 3 and 4 are Photoline
and General Photo Express. Their direct competitors outside Glorietta 3 and 4 are
Tronix Imaging Center, Digital Studio and Picture City. It is up to the consumers whether
which of those they prefer. Some simply base it on the location where it is most
accessible; some consumers based it on the price while others are just loyal to their
products. Below are brief analysis between Island Photo Center Inc. and its major direct
competitors in Ayala, Makati City.
Island Photo
Center
General Photo
Express
Picture
City
Products and
Services
Digital
Photo/Analog
Printing,
Personalized
Photo Cards,
Studio Services
(Rush ID,
Passport Pictures,
Various Portrait
Studio Packages,
Set Card Layouts,
Visa Pictures)
Camera Phone
Digital Photo
Printing, Studio
Services,
Camera Phone
Printing,
CD/DVD Burn,
Photo Border
Printing,
Greeting cards,
Invitations,
Collage,
Personal desk
calendar, Kodak
Digital
Photo
Printing,
Studio
Services,
Camera
Phone
Printing,
Photo
Frames
and
Albums,
Batteries,

40
Printing, File
Transfer/File
Saving (Negative
to CD, Slides to
CD, CD to CD,
Picture to CD,
Digital Images to
CD)
Video Transfer to
VCD and DVD,
Photo Restoration,
Manipulation and
Editing, Black and
White Processing,
Slide Film
Processing, Photo
Tiling, Batteries
and Chargers,
Photo Mosaic,
Albums, Sling
backpack, Picture
frames, Bags (e.g.
National
Geographic
Collection), Smart
phone cases,
Digital and Analog
Cameras, Video
cameras, Bi-
Directional slip in
pockets, I-mag
photography
magazine, Clock,
USB flash drive,
Memory card, T-
shirt, Puzzle,
Tumbler, Sticker,
Pillow, Mug,
Invitations,
Camera
Accessories like
Tripod, ID
Lamination, Wood
Framing
ATM, Photo
book, Photo
enlargement,
Print via
Negative films,
Traditional
Camera Printing
Tripods,
Memory
Cards,
Cotton
Painting
Promotion X-deal Brochures,
Leaflets
Monthly
sale, Food

41
court
promos
Location Glorietta 4, ground
floor
Glorietta 3,
ground floor
Ayala
MRT
station
Waiting time 15 minutes or less 30 minutes 30 minutes
or less
Table 4.3.1.1
Photoline Tronix
Imaging
Center
The Digital
Studio
Products and
Services
Digital Photo
Printing, Studio
Services,
Frames,
Albums,
Cameras,
Camera Repair,
Photo Mosaic,
Invitation Cards,
Photo Editing,
Photo
Restoration, CD,
DVD, Batteries,
Coin bank,
Plates
Digital Photo
Printing, Rush
I.D. services,
Soft copy
releasing
service, Studio
Portrait
Services, Photo
standee, Photo
cards, Photo
switching,
Caricature
service,
Invitation cards,
Calendars,
Lamination,
Frames, Key
chains, Energy
savers,
Cellphone
charging
Studio services,
Cellphone or
Mobile printing
service, Collage,
Photobook,
Birthday
invitation, Calling
cards,
I.D./Passport/Visa
Printing, Digital
and Analog
Printing, Negative
to CD Transfer,
Scanning, CD
and DVD
Burning, Index
printing, Data
recovery
Promotions Monthly sale,
Discounts,
Flyers, Fully-
functional
website
Photo Modeling
Contest, Fully-
functional
Facebook Fan
page,
Fully-functional
Website, Forum
Location Glorietta 3, third
floor
Ayala MRT
station
Greenbelt 4,
second floor
Waiting time 20 minutes to 30
minutes
30 minutes or
less
30 minutes
Table 4.3.1.2

42
Price Comparisons of Similar Products
Products Island Photo Kodak/General
Photo Express
Picture
City
1x1 Package 120 (12 pieces) 75 (4 pieces); 110
(8 pieces)
60 (8
pieces)
2x2 Package 120 (6 pieces) 75 (4 pieces); 110
(8 pieces)
60 (6
pieces)
Combi Package 150 (2x2 – 4
pieces + 1x1 –
8 pieces)
110 (2x2 – 4
pieces + 1x1 – 8
pieces)
60 (1x5 x
1.5 – 3
pieces +
2x2 – 3
pieces)
PRC with name
tag
150 (6 pieces) None None
1.5 in x 1.5 in 120 (16 pieces) 75 (4 pieces); 110
(8 pieces)
60 (6
pieces)
Philippine
Passport
120 (6 pieces) 75 (4 pieces); 110
(8 pieces)
60 (6
pieces)
UK Visa (6
pieces)
150 (6 pieces) 75 (4 pieces); 110
(8 pieces)
None
Canadian
Passport
150 (4 pieces) 75 (4 pieces); 110
(8 pieces)
None
Canadian Visa
Tourist
160 (4 pieces) 75 (4 pieces); 110
(8 pieces)
None
Schengen Visa 150 (6 pieces) None None
Japan Visa 150 (6 pieces) 75 (4 pieces); 110
(8 pieces)
None
US Visa 180 (8 pieces) 75 (4 pieces); 110
(8 pieces)
100 (6
pieces)
Seaman I.D.
Package
150 (6 pieces) 75 (4 pieces); 110
(8 pieces)
None
Australian Visa 150 (6 pieces) 75 (4 pieces); 110
(8 pieces)
None
Wallet size 10 each 10 each 10 each
2R Digital Print
Size
20 (minimum of
3)
20 (minimum of 3) 18
(minimum
of 3)
3R Digital Print
Size
7.50 each (6
pieces); 5.50
each (10 pieces
and above)
6.50 each (6 to 50
pieces); 5.95 each
(51 pieces and
above)
6 each
4 in 1 Digital
Print Size
20 (minimum of
2)
20 (minimum of 2) None
4R Digital Print
Size
7.50 each (6
pieces); 6 each
6.50 each (6 to 50
pieces); 5.95 each
7 each

43
(10 pieces and
above)
(51 pieces and
above)
5R Digital Print
Size
15 (minimum of
3)
12.50 each (6
pieces and up)
13 each
6R Digital Print
Size
45 40 40
8R Digital Print
Size
65 60 55
11R Digital
Print Size
250 230 None
Photo Mosaic
8x10
250 230 None
Photo Mosaic
11x14
450 450 None
Photo Mosaic
12x18
580 560 None
Photo Mosaic
16x20
720 730 None
Photo Mosaic
20x24
1100 1090 None
Photo Mosaic
20x30
1500 1400 None
Photo Mosaic
24x36
2000 1900 None
Photo keychain 45 45 40
Photo notebook
5R Size
300 300 None
Photo notebook
8R Size
700 700 None
Gift tags/Thank
you cards
5 each 5 each None
Photo Greeting
Card
25 25 None
Desktop
Calendar 4R
Size
195 190 None
Desktop
Calendar 5R
Size
400 380 None
Desktop
Calendar 8R
Size
2000 1800 None
Tumbler with
Picture
250 230 None
Collage 350 (minimum
charge)
400 (minimum
charge)
380
(minimum

44
charge)
Photo set card 350 330 None
Pillow cover 350 350 None
T-shirt 375 370 None
Enlargement
for photo 11x14
250 255 None
Enlargement
for photo 12x18
395 390 None
Enlargement
for photo 16x20
590 580 None
Enlargement
for photo 20x24
950 960 None
Enlargement
for photo 20x30
1,400 1420 None
Enlargement
for photo 30x40
2,800 2900 None
Italicize – indicates lowest price
Table 4.3.1.3
Products Photoline Tronix
Imaging
Center
Digital Studio
1x1 Package 80 (6 pieces) 50 (6 pieces) 100 (6 pieces)
2x2 Package 80 (6 pieces) 60 (6 pieces) 100 (6 pieces)
Combi
Package
80 (2x2 – 4
pieces + 1x1 –
4 pieces)
60 (2x2 – 4
pieces + 1x1 –
8 pieces)
120 (2x2 – 4
pieces + 1x1 –
4 pieces)
PRC with
name tag
None 60 (6 pieces) None
1.5 in x 1.5 in 80 (6 pieces) 60 (6 pieces) 100 (6 pieces)
Philippine
Passport
80 (6 pieces) 60 (6 pieces) 100 (6 pieces)
UK Visa (6
pieces)
None 60 (6 pieces) 100 (6 pieces)
Canadian
Passport
Canadian Visa
Tourist
US Visa 80 (6 pieces) 60 (4 pieces) 100 (6 pieces)
Seaman I.D.
Package
None 60 (6 pieces) 100 (6 pieces)
Wallet size 3 each 1.25 each None

45
2R Digital
Print Size
4 each None 5 each
3R Digital
Print Size
6.25 each 5 each 7 each
4 in 1 Digital
Print Size
10 each None 10 each
4R Digital
Print Size
7.50 each 6 each 8 each
5R Digital
Print Size
12 each 7 each 15 each
6R Digital
Print Size
50 40 50
8R Digital
Print Size
65 55 65
Photo
keychain
30 30 30
Photo
Greeting Card
25 20 20
Desktop
Calendar 4R
Size
200 150 200
Desktop
Calendar 5R
Size
400 350 350
Tumbler with
Picture
200 None None
Collage 300 (minimum
charge)
None None
Photo set card 300 290 None
italicize - indicates the lowest price
Table 4.1.3.4
Of all these products, Island Photo’s printing service specifically the wallet size,
2R and 3R printing sells the most according to the owner. These imaging centers
similarly offer the basic products and services of what consumers’ expectations
regarding an imaging center. As seen on Table 4.3.1.2, collectively, these major direct
competitors have lower prices of their products and services compared to Island Photo
Center but the competitive advantage of Island Photo Inc. to both of them as seen on

46
Table 4.3.1.1, is that less waiting time in obtaining the product a consumer has
purchased and it has more products and services to offer to meet the different needs
and wants of customers regarding photography. Moreover, Island Photo Center only
have X-deal as their promotion compared to other competitors who has sufficient
promotions.
As seen from the sample 2R pictures produced by the imaging center firms
(please refer to the Appendix C portion), the produced photograph from Island Photo
have more vibrancy than those of the produced photographs of General Photo Express,
Picture City, Photoline, Digital Studio and Tronix Imaging Center. Below are the pictures
depicting the mapping of the locations of Island Photo Center and its competitors:
Entrance and Exit
Figure 4.3.1

48
Figure 4.3.4
The current market share of Island Photo Center Glorietta 4 branch according to
the survey conducted is 11%. Picture City got the highest market share level based on
the survey conducted. Island Photo Center only ranked in 4th place. The current market
size of Island Photo Center Glorietta 4 branch based on the total sales of 2011 is
44,238,239.36. Below is the market share of Island Photo Center and its direct
competitors based on the survey conducted:
Figure 4.3.5
16%
11%
26%
5%
32%
10% Kodak Photo Express
Island Photo Center
Tronix Imaging Center
Digital Studio
Picture City
Photo Line

49
4.3.2 Indirect competitors
Island Photo has indirect competitors since there are other firms that have the
same services or products but not as their primary services or products.
SM appliance center is one of the indirect competitors of Island Photo which
located at SM Makati. Since popular appliance brands like Sony and Samsung have
camera products, SM Makati also tried to offer digital cameras. SM appliance center is
considered as indirect competitor of Island Photo because cameras are actually not
their primary products. They are focused more on other appliances like television,
washing machine, etc. Camera brands that they are offering are Sony and Samsung
only. Their Sony and Samsung digital cameras are ranging from P5,000 – P10,000.
Netopia Internet Café is also one of the indirect competitors of Island Photo
which can be found in MRT Ayala station. It is an internet café which now offers photo
printing service such as Camera phone printing and I.D. photo services. They are
considered as indirect competitor of Island Photo since they just included photo printing
service in their usual document printing service. Their primary services are for online
gaming and surfing the net. They use photo paper from bookstores and computer
printer which normally use for document printing. The price range for photo printing is
from P6 – P30 depending on the size.
Another indirect competitor of Island Photo is Robee Stickers. It is a stall located
along the hallways of SM Makati and LRT. Robee Stickers specializes in making and
printing stickers, invitations, and business cards. The usual price range of their
personalized stickers is from P70 – P120. They are considered as indirect competitor

50
because they are only into making and printing personalized cards or stickers for
consumers and commercial products.
In the case of Island Photo, they have different services and products to offer to
the consumers. People would not need to go to different stores since all their needs
regarding photo products and services are offered by Island Photo.

51
CHAPTER 5
The Company and Its Internal Environment
5.1 Analysis of the Organizational Structure
Mrs. Imee Ong-Hallare, president or general manager and owner of Island Photo
Center Inc. is responsible for most of the decision making that happens in the imaging
center. In decision-making, the general manager is clearly communicates among all the
staff regarding all business matters. The flow of information in the company is from top
to bottom and then from bottom to top. This is because the company values the
feedback of employees with regards to the decisions to be made.
Island Photo Center’s type of organizational structure is functional structure. The
said structure has different departments below the top manager or owner such as
manufacturing, sales, finance and personnel but over-all, Island Photo Center Glorietta
4 branch has only three functions which are Marketing department, Accounting or
Finance department, Branch managers and the Staff or Shop employees. Even though
Island Photo Center Glorietta 4 branch have three business functions, still the final
decision is made by the general manager. The branch manager of Island Photo Center
Glorietta 4 branch is Gina Borra. She is responsible for the administration and efficient
daily operation of Island Photo Center Glorietta 4 branch, including operations, product
and service sales, customer service, and security and safety in accordance with the
imaging center’s objectives. This is advantageous since there will be no lack in
communication and information. Island Photo Center Glorietta 4 branch has eight
employees. The number of employees and workers within the company is considered

52
appropriate because employees can easily shift their work schedule and therefore it
avoids stress in the workplace.
If the time comes wherein there are plenty of customers to assist, the staff will
have a hard time to attend to their needs. Island Photo Center Inc. should be aware in
this scenario which is not impossible to occur. The organizational structure they have
currently is still bearable but when the company expands, it would require them to
change their structure and look for alternatives such as hiring managers for human
resource. The researchers have found out that in their marketing department, the
marketing manager has recently resigned, so Mrs. Imee Ong-Hallare currently takes
over this position.
Indeed, the researchers analyzed that the company’s organization and
management is not right for the company. The researchers think that the company is
undersized. Having only three organizational functions is not enough to run an imaging
center effectively and efficiently. The researchers suggest that for every branch, they
should also have an Area Supervisor that will ensure that all policies and procedures
are followed and that products and services are maintained at the highest levels. He or
she works to develops subordinates’ skills and provide them with adequate direction. He
or she is like the assistant of the Branch manager. And in the case of their absence of a
marketing manager, Mrs. Imee Ong-Hallare should immediately hire a new one. Mrs.
Imee Ong-Hallare, also said that she is also the Human Resource manager but a
Human Resource department do not yet exist in the company.

53
Figure 5.1.2
5.2 Analysis of Organizational Culture
“Organizational culture comprises the attitudes, experiences, beliefs, and values
of the organization, acquired through social learning, that control the way individuals
and groups in the organization interact with one another and with parties outside it”.
(Sierrat, 2009)
Mrs. Imee Ong-Hallare, general manager of Island Photo Center Inc. has an
accurate understanding of the organization’s culture in order to direct activities in a
productive way and to avoid the destructive influence of having employees who are not
committed to the company’s goals. A shared sense of purpose starts with the hiring
process and continues with careful attention on how employees are motivated and
General
Manager
Marketing
Branch
Manager
Accounting and
Finance
Shop
Employees

54
rewarded for their efforts. She continually conveys this culture through consistent
positive feedback that gives each member of the organization a sense of importance.
She believes in T.H.I.F. meaning trust, honesty, integrity and fairness in all
aspects of their business. These are the main values of the company which give them a
sense of identity. The employees are treated fairly and with respect thus they become
more productive and more enthusiastic to work. The employees treat their co-workers
with respect as well that leads to a safe and peaceful environment. In addition, she
believes in the four operational values that every company should have namely:
excellent customer service, professionalism, flexibility and innovation.
The organization is autocratic and bureaucratic in nature. A hierarchy is always
followed and a decision is always made by the general manager who is on top of the
structure. Adapting this kind of culture could not be appropriate for their type of business
now. Sierrat (2009) states that in recent times, organizations being democratic or
participative in nature tends to be more successful. It increases job satisfaction for
employees by involving them in business matters, but it also helps to develop their
skills. Employees feel in control of their own destiny and so are motivated to work hard
by more than just a financial reward. Island Photo Center Glorietta 4 branch’s
organizational structure has three functions but still the final decision will be made by
the general manager. Decision making capabilities can also be delegated to other
people in the organization which will lead to more flexibility of the whole organization to
possible changes in the market. However, Mrs. Imee Ong-Hallare is conservative in
terms of not taking risks because she is open for ideas but she is still the person-in-
charge or the one who decides for the company whatever may happens.

55
The company’s organizational culture was set by the founder Alfredo Ong since it
was established late 1967. There are existing norms and parameters that all employees
and staff must abide by for the attainment of a harmonious management-employee
relationship. However, the culture does not exclude the introduction of new ideas,
beliefs and values that would improve and strengthen the whole organizational structure
in the future. Island Photo Center Inc. made sure that they will practice the norms and
customs that their founders have implemented at the beginning of the business and are
still willing to accept new ideas and different changes as long as it will benefit the
business.
5.3 Functional analysis
5.3.1 Marketing
5.3.1.1 Product
Island Photo Center is known for the good quality of their photos in terms of
sharpness and contrast of the photos. They are the best partner for preserving and
sharing memories through photographs. They make sure that their customers will look
good and not look pale, sick or have hepatitis in the pictures. Most of the customers
complain that they look sick because they are too yellow or too white in the pictures
taken in other imaging center or photo studio. In Island Photo Center, they maintain the
same color of the pictures from the moment it was captured until it was printed. There is
a right amount of contrast and sharpness to the photos, which is not too bright and not
dim or foggy.

56
They use quality paper like Kodak, Lucky, or Digital paper for printing the pictures
and Noritzu QSS – 3300 printer. They have studio services for passport and visa photo
like US visa, Canadian passport, Canadian visa, Schengen visa, Japan visa, Panama
visa, and Australian visa. In addition, they have various studio packages like little ones
portrait, star prints, family portrait, career portfolio, celebrity prints, keepsake prints.
From the usual photo printing and studio services like rush ID, passport photo,
various studio packages, and visa photo, they have other products and services to suit
the customers’ needs. They have photo restoration which is perfect for those old photos
that has been damaged or affected by age. They can make it look like the original photo
even if it is 50 years ago or more. They also have photo mosaic which is a perfect gift
for a special someone. It is formed through a collection of pictures to appear as one
image. They do customized pillow, keychain, gift tags, notebook, calendar, tarpaulin,
mug, invitations, business or greeting cards, puzzle, t-shirt, tumbler, and sticker.
Customized products are in growth stage of the product life cycle. It is popular
for companies like when they are having their Christmas party as a gift or as a gift to
their customers.
Like any other imaging center, Island Photo Center has digital and analog
camera. Camera brands that they are offering include Canon, GE, Nikon, Samsung,
Verzio and Olympus. Some people like old cameras such as Lomo camera while others
are into digital SLR.

57
Aside from digital or analog cameras and video cameras, they have other
products like camera accessories like tripod or camera stand, picture frames, memory
card, film and batteries, USB flash drive, camera bags, albums, smart phone cases,
digital photo album, I-mag photography magazine, clock, smart phone cases, batteries
and chargers, and Bi-Directional slip in pockets. In addition to their services, they do
video transfer to VCD and DVD, file transfer/file saving like negative to CD, slides to
CD, CD to CD, picture to CD, and digital images to CD, manipulation and editing, black
and white processing, slide film processing, ID lamination, and wood framing.
They have different sizes of photos like 1x1, 2x2, wallet size, 2R, 3R, 4R up to
11R. For photo mosaic, sizes are 8x10, 11x14, 12x18, 16x20, 20x24, 20x30, and
24x36. They can also enlarge photos from 11x14 up to 30x40. For desktop calendar,
sizes are 4R, 5R, and 8R while for photo notebook, sizes are 5R and 8R. There are
many sizes to choose from depending on what the customers need or want.
Island Photo Center is a complete package store. Everything a customer might
need, they can get it in Island Photo Center and they do not need to go to another
imaging center or any other related business firm to find what they need or looking for.
For now, Island Photo Center does not need to add other services or products anymore
since it is a complete package store. But if ever the customer is looking for a certain
product or service and Island Photo Center does not have it, Island Photo Center is
willing to add that service or product to their list. Warranties and returns depend on what
product like camera.

58
The researchers tried the photo printing service of Island Photo. It only took 15
minutes just to print the 2R pictures unlike in other imaging centers, which are also the
competitors of Island Photo, took 30 minutes or more just to print the 2R pictures. They
have a cozy sofa for customers while waiting for their pictures. The packaging is a plain
yellow and blue paper envelope which is not updated. It still has the other branches that
are currently closed. Also some of their new products and services are not listed there.
They should update it for the sake of the customers so they will not be confused. But
the researchers are satisfied with the outcome of the picture. The printing services of
Island Photo Center have a humungous factor in their sales performance according to
the owner. Indeed, it is their main business which is to become digital or analog photo
service provider. The wallet sizes printing, 2R and 4R photo printing had a great factor
in their sales performance according to the owner.
5.3.1.2 Price
Customers want value for money in every product and service which surely
Island Photo Center can give to them. Island Photo Center is making sure that they
maintain the same quality of products and services they offer to their customers without
affecting that much the price of their products and services. There might be a little
change in the price range of the products and services depending on the branch but
they make sure it is still a reasonable price.
The price range for their studio packages is from P250 - P500. While for sizes
like 3R, the price depends per piece. The more pictures the customers want to print, the
lower the price. It is a discount for their customers. For 1 to 12 pieces, it will cost around

59
P15 while 13 to 24 pieces will cost around P13, and 25 above cost around P10. The
price range for visa and passport photos is from P150 to P180. Enlargement of photos
and photo mosaic’s price depends on the size. For enlargement of photos, it cost
around P250 – P2,800 while for photo mosaic, it cost around P250 – P2,000. Other
customized products like pillow and t-shirt which cost around P350 – P375.
The prices of products and services of Island Photo Center are a little higher than
its other competitors like Kodak Photo Express especially Tronix Imaging Center and
Picture City. The price range of Island Photo Center’s products and services is higher
than Tronix Imaging Center and Picture City since they are targeting different social
class. Island Photo Center is catering to the class B and C while Tronix Imaging Center
and Picture City is catering to the mass segment. Also Island Photo Center is located
inside the mall while Tronix Imaging Center and Picture City are located at MRT Ayala
Station. Island Photo Center’s rental fee is expensive than its competitors located at
MRT Ayala Station which is the reason its products and services prices are higher.
From the usual payment through cash, customers can also pay through credit
cards for their products like cameras, etc. As possible, they give discounts for those
who avail printing in bulk. But unlike in Kodak Photo Express wherein they give
discounts to those who have their membership card, Island Photo does not have
membership card for their loyal and regular customers. People love discounts for
products and services that they will avail. Island Photo Center needs to provide
membership card for their customers so that they will keep coming back.

60
Prices of other products and services offered
Products/Services Price
File transfer or File saving Php 80 – 120
Video transfer to VCD and DVD Php 450 – 700
Photo restoration, manipulation and
editing
Php 300 – 600
Black and White processing Php 1000 – 2500
Photo Tiling
 8x10
 8x12
 16x18
 16x24
 18x24
 20x24
 24x32
 24x36
 30x48
 32x36
 48x48
Php 100
Php 130
Php 170
Php 230
Php 250
Php 285
Php 440
Php 515
Php 780
Php 1025
Php 1365
Batteries Php 100 – 300
Chargers Php 150 – 250
Albums Php 150 – 350
I.D. Lamination Php 25
Sling backpack Php 250 – 350

61
Picture Frames
 4R Photo Frame
 5R Photo Frame
 8R Photo Frame
Php 300
Php 390
Php 590
Bags (e.g. National Geographic
Collection)
Php 600 – Php 1000
Bi-directional slip in pockets Php 200 – Php 400
I-mag photography magazine Php 200
Camera Accessories Php 200 – 700
Wood Framing Php 500 – 900
Films Php 300
Collage Php 350 (minimum charge)
Key Chains
 Acrylic Key Chain
 Flip Key Chain
 Round Key Chain
Php 45
Php 125
Php 190
Mugs
 White Mug
 Inner color Mug
 Full color changing mug
 Couple mug
 Glass mug
 Car mug
Php 260
Php 310
Php 450
Php 399
Php 300
Php 450

62
Table 5.3.1.2.1
5.3.1.3 Place
Island Photo before has 42 branches but now it only has 7 remaining branches in
the Philippines. The 7 remaining branches are located in Greenhills, Glorietta 4, SM
Manila, St. Francis Square Mall, the two branches in Ilo-ilo which are in SM Iloilo and
Herrera, and their first branch which is in Quiapo.
Invitation Pictures
 3R (1-12 copies each)
 3R (25 copies above)
 4R (25 copies and above)
Php 20
Php 17.50
Php 15
Php 25
Php 22.50
Php 20
Cameras
 Canon EOS 1100D
 GE X500
 Nikon D3100
 Olympus E-PL1
 Samsung WB150F
 Verzio A502
 Verzio C501
 Verzio D520 HD
 Verzio DX1 HD
Php 21, 400
Php 7,500
Php 7,990
Php 13,980
Php 9,900
Php 6,550
Php 6,600
Php 6,490
Php 6,990

63
Those branches located in malls are accessible to the customers since almost
all their needs can be found in malls. Island Photo’s branch in Ayala, Makati can be
found at ground level of Glorietta 4. It is a perfect place since Makati is known as the
business capital of the Philippines. People can easily avail their products and services
especially those working within the area.
Nevertheless, ground level of Glorietta 4, which is the location of Island Photo
Center, is not that much a promenade to people than in second floor which is a pathway
to the MRT Station. Island Photo Center should consider locating its store in the second
floor.
5.3.1.4 Promotion
Promotion for products and services of an imaging center is expensive. Island
Photo uses x-deal as promotion. X-deal or exchange deal hits the target for businesses
who do not wish to spend money on a product or service but is willing to exchange a
product or service for it (Voteforus.com). For example, they will agree to shoot pictures
for a certain TV program and in return, the TV program will promote them on air.
Word-of-mouth is another way Island Photo Center is being promoted.
Customers who are satisfied with their products and services will refer them to their
friends and co-workers. Word-of-mouth or referral is the cheapest and easiest way for
the company’s products and services to be promoted. Instead of spending millions of
pesos for a simple advertisement, word-of-mouth is mostly the option of some imaging
centers like Island Photo Center. Most of the customers who refer them are the

64
photographers who always avail photo printing services. That is the reason why they do
not compete with their customers who are photographers. Also they need to strengthen
the relationship with their customers who are photographers like giving them more
incentives or discounts.
The company lacks in promotions. Island Photo Center is not doing any
promotional strategies like internet or interactive marketing (social media marketing), e-
commerce, direct marketing, etc. There are several famous imaging centers such as
Picture City, Photoline and Tronix imaging center that are doing various
internet/interactive marketing, direct marketing and sales promotions in order to attract
the market and increase their brand awareness but Island Photo Center is not doing
those promotional tools. They only settle with x-deal promotion and word-of-mouth.
Moreover, instead of having portion of their profits for advertisement, they just allot the
money for improving and maintenance of their machineries like the printers since it cost
hundred thousands just to fix it. Most of their advertisement is just the signage in front of
the store.
Although Island Photo Center has been in the industry for almost 45 years, it still
needs to strengthen its brand name. Kodak or General Photo Express, one of Island
Photo Center’s competitors has a strong brand name, because it is one of the first
imaging centers established in the industry. Island Photo Center must attract potential
customers who have not yet tried their products and services and have them to become
loyal customers. They need to promote it in a way people will benefit, like having certain
promotional gifts for every purchase of digital or analog camera or availing photo

65
printing service in bulk within in a limited time offer. Island Photo Center should have an
online advertising in order for the consumers to see what are their updated products
and services with their corresponding prices.
Among all the top imaging centers in the country, Island Photo Center is the only
one who does not have a website or a Facebook page. The importance of having a
website or Facebook page is it can show the updated products and services of Island
Photo Inc. and customers can visit it for needed assistance and venue for complaints.
5.3.2 Production/Operation
“Production and operation activities often represent the largest part of an
organization’s human and capital assets. In most industries, the major costs of
producing a product or service are incurred within operations, so production and
operations can have great value as a competitive weapon in a company’s overall
strategy”. (McGraw-Hill, 1981)
Supplies or raw materials of Island Photo Center Inc. are ordered from their
suppliers namely Be-Red Enterprises, CD Outlet Tech Inc., Chelsea Imports, Colorite
Marketing Corp., El Cas Cu Mktg. Corp., Family Printers Inc., Haldane Philippines Inc.,
Millennium Access Corp., 3D Me Philippines Inc., and Vic Cuyugan Company, Inc.
Island photo make sure that they have high quality materials for their goods and
services. Also they keep good inventory of their supplies or raw materials to avoid
shortage.

66
List of Suppliers Description
Be-Red Enterprises
Located in Manila City; A retail computer
spare parts business.
CD Outlet Tech Inc.
Located in Manila City; Computer
accessories business
Chelsea Imports
Located in Makati City; Photo album
business
Colorite Marketing Corp.
Located in Makati City; Focuses on Visio
Studio Lites, Falcon Eyes, Eureka
Dryboxes.
El Cas Cu Mktg. Corp.
Located in Manila City; Photo albums and
frames business
Family Printers Inc.
Located in Quezon City; Focuses in
computer consumables, printer supplies
for business activities and various printing
services.
Haldane Philippines Inc.
Located in Manila City; Deals with
electronic parts, electronic equipment,
audio and video equipment, appliances-
major, digital cameras, mobile phone
dealers.
Millennium Access Corp.
Located in Makati City; It is an existing firm
engaged in trading of office and school
supplies such as computer forms, fax
papers, bond and copy papers, Thermal
and POS paper rolls, laser toner and desk
jet cartridges, POS and printer ribbons and
various items.
3D Me Phils. Inc.
Located Makati City; Deals with software
and lenticular products; creating,
developing and marketing the latest and
most pioneering software technology into
an innovative commercial product for the
photo novelty and gift industry.
Vic Cuyugan Company, Inc.
Located in Manila City; A bookbinding
company that pioneers in the manufacture
of personalized photo albums in the
Philippines; Has introduced most, if not all,
of the country's first customized photo
albums and other products related to
photography; Hand-made albums and
frames.
Table 5.3.2.1

67
Most of their branches are located inside the mall. Island Photo Center is located
at ground floor of Glorietta 4, Ayala Center, Makati City. Its operating hours are from
Monday to Thursday 10:00 am- 8:00 pm and Friday to Sunday 10:00 am – 9:00 pm.
Upon customers’ entry to Island Photo Center, employees will welcome every customer
and ask them what they need and how Island Photo Center may help them. Island
Photo Center offers different products like personalized photo cards, mugs, shirt, pillow,
tumbler, clock puzzle, camera accessories, frames and albums, films and batteries and
services like video transfer to CD and DVD, photo restoration, manipulation and editing,
photo tiling, photo mosaic, black and white processing, slide film processing, ID
lamination, wood framing, digital and analog cameras, etc. For the process of printing,
they transfer the pictures through Bluetooth or universal serial bus to the computer, if
needed; they can edit those pictures and then print it using Noritzu QSS – 3300 printer
that is connected to the computers. Compared to other competitors within the area, only
Island Photo Center has available seats for the waiting area of customers. The
minimum waiting time in Island Photo Center to obtain the pictures is 15 minutes. It is
good for 30 pictures for 4R photo printing or 45 pictures for 2R/3R photo printing or 60
pictures for wallet size photo printing.
From the usual payment through cash, Island Photo also accepts payment using
credit cards for the convenience of their customers. A printed receipt is given to
the customers for the products or services they purchase.
Island Photo Center use machines like Noritzu QSS – 3300 printer for printing
pictures. Island Photo Center is very practical when it comes to investing for

68
machineries. That is why instead of having costs for buying new machineries for
personalized products like mugs, shirt, pillow, tumbler, stickers, etc. they do job-out.
Success of operations depends on the physical layouts of the facilities. Island
Photo knows that the layout decisions have a long term consequences on cost and their
ability to serve their customers. Having the facility layout will help in providing enough
production capacity, reducing material handling costs, easy supervisions, improvement
in productivity, increase in morale of the employees, reducing accidents and hazards to
personnel, utilizing the space efficiently and effectively. (Murari, 2008)
Indeed, Island Photo Center Inc. is a one stop center where they provide a wide
variety of products and services related to images. Improving Island Photo Center
means much more than simply delivering high quality services where it requires
strategic business planning, financial and reimbursement expertise, marketing
strategies, etc.
5.3.3 Finance
The financial condition is often considered the single best measure of the firm’s
competitive position. Determining an organization’s financial strength and weaknesses
is essential to formulating strategies effectively.
The financial department of Island Photo is headed by Josephine Ong Cabildo.
The financial department is very important because they are responsible for financial
planning. Financial department ensure sufficient funds and cash flows are available and
costs are controlled that will help in achieving the organization's objectives. The

69
management will be able to determine if the business is earning or if they are incurring
loss for the past years. By identifying necessary financial information, this will help
managers when they make decisions and judgments. The financial department is also
responsible for making financial documents and preparing financial accounts for the
company. The profits generated by Island Photo Center, Inc. in all of their purchased
products and services are used as a source of funds for the purchase of raw materials
needed for monthly use and for the cost that the company utilizes such as electricity,
rent, staff salaries, etc.
5.3.3.1 Financial Ratios
1. Liquidity Ratios:
A. Current Ratio =
2009 2010 2011
Current Ratio 11.60 11.88 15.56
Table 5.3.3.1
This shows that in the past years, Island Photo Center has enough resources to
pay its debts. It indicates good financial strength because Island Photo Center has the
ability to meet the creditor’s demand. Based on the Island Photo Center Glorietta 4
branch comparative financial statement, in 2009, for every Php 1.00, there are 11.60
assets to pay its short term obligations. In 2010, for every Php 1.00, there are 11.88
assets to pay its short term obligations and in 2011, for every Php 1.00, there are 15.56
assets to pay its short term obligations. The imaging center can easily meet its short
Current Assets
Current Liabilities

70
term obligations whenever they are due. This simply means that Island Photo Center
Glorietta 4 branch’s assets are more than enough to settle current liabilities.
B. Quick Ratio =
2009 2010 2011
Quick Ratio .28 .43 .47
Table 5.3.3.2
This shows that in the past years, Island Photo Center has been able to cover its
financial obligations with its quick and readily available assets. In 2009, for every Php
1.00 liability, the company has .28 assets to pay for the debt of the company. In 2010,
for every Php 1.00 liability, the company has .43 assets to pay for the debt of the
company and in 2011, for every Php 1.00 liability, the company has .47 assets to pay
their debt. This means that Island Photo Center Glorietta 4 branch can still meet its
short-term obligations.
2. Activity Ratios:
A. Inventory Turnover =
2009 2010 2011
Inventory Turnover .61 .53 .38
Table 5.3.3.3
This shows that in the past years, Island Photo Center implies poor sales in
inventory. It means that Island Photo Center is inefficient in controlling inventory levels.
Current Assets – Inventory
Current Liabilities
Sales
Inventory of finished goods

71
B. Fixed Assets Turnover =
2009 2010 2011
Fixed Assets Turnover 3.15 2.71 1.90
Table 5.3.3.4
This shows that in the past years, Island Photo Center has been inefficient in
using the investment in fixed assets to generate revenues. Sales in relation to the Island
Photo Center Glorietta 4 branch’s fixed asset are not that productive. It is due to
decreasing pattern for the three consecutive years from 2009 to 2011. The return on
capital is longer in this scenario.
C. Total Assets Turnover =
2009 2010 2011
Total Assets Turnover .60 .51 .37
Table 5.3.3.5
This shows that in the past years, Island Photo Center Glorietta 4 branch has
been inefficient in using its assets in generating sales or revenue. Sales in relation to
total asset are not sufficient to maintain the size of their assets. Due to the fluctuating
pattern of the ratios, Island Photo Center Glorietta 4 branch needs to generate more
sales tantamount to the size of their investment.
3. Profitability Ratios:
A. Gross Profit Margin =
Sales
Fixed Assets
Sales
Total Assets
Sales - Cost of Goods sold
Sales

72
2009 2010 2011
Gross Profit Margin 80.38% 83.36% 80.97%
Table 5.3.3.6
This shows that Island Photo Center were able to control effectively its cost in
2010 but failed to cover their operating expense in the year 2011.
B. Operating Profit Margin =
2009 2010 2011
Operating Profit Margin 35.67% 58.09% 85.01%
Table 5.3.3.7
This shows that in the past years, Island Photo Center has been able to pay for
its fixed cost. It means that Island Photo Center has a good cost control and/or that
sales are increasing faster than costs, which is the optimal situation for the company.
C. Net Profit Margin =
2009 2010 2011
Net Profit Margin 15.12% 16.63% 2.08%
Table 5.3.3.8
This data provides the percentage on sales on how the company’s revenues are
kept as net income. From 2010 with its 16.63% profit had greatly decreased to 2.08%
profit for the year 2011. This indicates that Island Photo Center have a low margin of
safety. There is a high risk that a decline in sales will erase its profits and result in a net
Earnings before interest and taxes
Sales
Net Income
Sales

A Proposed Strategic Plan for Island Photo Center Inc.

A Proposed Strategic Plan for Island Photo Center Inc.

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to A Proposed Strategic Plan for Island Photo Center Inc.

Similar to A Proposed Strategic Plan for Island Photo Center Inc. (20)

Recently uploaded

Recently uploaded (20)

A Proposed Strategic Plan for Island Photo Center Inc.