Mendiola, Manila A Strategic Management Paper on Farias Transit Submitted by: Angelica A. Bernardo 4-AOM Submitted to: Prof. icardo . Palo, CPA, MBA !ebruary "#, "$#4 0 | P a g e %able of Contents &'&C(%)*& S(MMA+............................................................................." ). ),%O-(C%)O,....................................................................................4 Company Bac.ground..........................................................................4 )). &S&AC/ -&S)0, A,- M&%/O-O1O0+...........................................2 ))). COMPA,+3S *)S)O, A,- M)SS)O,.....................................................4 5. # Mission 6 *ision Statement............................................................4 )*. &7ternal Analysis.............................................................................## 4. # 0eneral &n8ironment..................................................................## 4." )ndustry and Competitor Analysis................................................"9 4.5 Summary and Conclusion............................................................45 *. )nternal Analysis...............................................................................49 :.# Company Performance................................................................49 :." )nternal Audit...............................................................................:: *). S%A%&0+ !OM(1A%)O,................................................................44 2.# S;O% Matri7................................................................................44 2." )& Matri7.......................................................................................4: 2.5 0rand Matri7................................................................................42 2.4 Space Matri7................................................................................44 2.: BC0 Matri7...................................................................................49 *)). OB<&C%)*&S, S%A%&0+ &COMM&,-A%)O,S A,- AC%)O, P1A,S 9# 4.#Strategic and !inancial Ob=ecti8es................................................9# 4."ecommended Business Strategies..............................................9# 4.5 ecommended Organi>ational Strategies....................................94 4.4 !inancial Pro=ections and O8erall &8aluation of t?e Strategies....9: 4.: -epartmental Strategies and !unctional Strategies....................9@ *))). S%A%&0+ &*A1(A%)O,, MO,)%O),0 A,- CO,%O1..................@5 9.# Balanced Scorecard.....................................................................@5 eferences...........................................................................................@4 Appendi7:.............................................................................................@: 1 | P a g e EXECUTIVE SUMMARY !ariAas %ransit is a transportation business t?at goes from Manila to )locos and 8ice-8ersa. )t also accepts freig?t ser8ice. %?e terminal is located in #"59 A./. 1acson St. Sampaloc, Metro Manila. %?e ma=or opportunities identiBed are Construction of e7pressCay connecting ,ort? 1u>on &7pressCay D,1&'E and Sout? 1u>on &7pressCay DS1&'E, alternati8e route of t?e %arlac to 1a (nion &7pressCay D%P1&'E, de8elop transport app, and integrating 0PS trac.ing system. %?e ma=or t?reats identiBed are proposal construction of bullet train system and proposal construction of railCay t?at Cill co8er t?e entire nort? and sout? netCor.s of t?e P?ilippine ,ational ailCays DP,E. )n strategy formulation S;O%, Space, 0rand, BC0, and )& matri7 are used to identify C?at strategy Cill be used to ac?ie8e t?e desired goals and ob=ecti8es of t?e company. (sing space matri7, !ariAas %ransit is identiBed in t?e conser8ati8e side Fuadrant. %?e strategies in t?is Fuadrant are mar.et penetration, mar.et de8elopment, product de8elopment and related di8ersiBcation. (sing grand matri7, !ariAas %ransit is identiBed in Fuadrant tCo C?ic? means t?e industry groCt? is ?ig? and t?e competiti8e position is Cea.. %?e basis of ?ig? industry groCt? is t?e computed CA0 C?ic? is 2.4#G. %?e basis of Cea. competiti8e position is t?e negati8e compounded percentage groCt? in proBts. (sing BC0 matri7, !arinas %ransit is identiBed on t?e Fuestion 2 | P a g e mar. side C?ic? means industry groCt? is ?ig? and t?e Bnancial position of t?e Brm is Cea.. %?e strategies for Fuestion mar.s are mar.et penetration, mar.et de8elopment, product de8elopment, and di8estiture. (sing )& matri7, !ariAas %ransit is identiBed in t?e Fuadrant B8e C?ic? means ?old and maintain. %?e strategies for t?is Fuadrant are mar.et penetration and product de8elopment. %?e result of t?e strategy formulation focuses on t?e mar.et penetration C?ic? gat?ered t?e ?ig?est score in t?e HSPM. %?e .ey strategic management issues identiBed are t?e negati8e compounded percentage groCt? in proBts for t?e past 5 years because of ?ig? operating e7pense and t?e lac. of mar.eting researc? and strategy of t?e Brm because of not ?a8ing mar.eting oIcer. %?e strategic ob=ecti8es of !ariAas %ransit are Brst to increase sales by at least :G annually for t?e ne7t 5 years by maintaining its mar.et presence and t?roug? aggressi8e mar.et penetration and mar.et de8elopment. %?e action plan of !ariAas %ransit are Brst to ?ire a mar.eting oIcer, ?ire an ).%. e7pert, and acFuire computer for t?e ne7t " mont?s. %?en e7ecute intensi8e promotion for t?e acFuired four neC buses in social netCor.ing sites li.e tCitter, faceboo., and instragram and establis? t?e route of Manila to Baguio. 3 | P a g e I. INTRODUCTION 1.1 Company Ba!"ro#n$ 1.1.1Company %ro&'( !ariAas %ransit is a transportation business t?at goes from Manila to )locos and 8ice-8ersa. )t also accepts freig?t ser8ice. %?e terminal is located in #"59 A./. 1acson St. Sampaloc, Metro Manila. At present, t?e company ?as a total of @2 employees and 29 buses on ser8ices. 1.1.)S(r*i(s !ariAas %ransit is a public transportation, C?ic? transports passengers anyC?ere along t?e Manila to )locos route. !reig?t is also anot?er t?ing t?at !ariAas %ransit caters to, customers lea8e t?eir pac.ages and sends t?em from Manila to )locos and 8ice 8ersa. %?e pac.ages t?at t?ey send include cartons, sac.s, bo7es and simple letters. 1.1.+Company ,istory 4 | P a g e J!ariAas %ransit, a sole family proprietors?ip Cas founded by t?e late Marcelo *alle=os !ariAas of *igan, )locos Sur toget?er Cit? ?is Cife, t?e late osa Peralta 1una of PasuFuin, )locos ,orte.K J!our years before t?e outbrea. of t?e Second ;orld ;ar in -ecember #@4#, Marcello *. !ariAas died and t?e management of t?e business fell in t?e s?oulders of ?is Cife and ?is tCo groCn up sons Constate and !ederico.K J)n Marc? #@4:, during t?e liberation, !ederico broug?t out t?e " buses ?e ?ad .ept clandestinely in Piddig and t?e master mec?anic, !ederico C?o ne8er ?ad any formal education in automoti8e repairing or t?e li.e, Cas able to assemble one bus out of t?e " dilapidated buses into good running condition C?ic? ?e ?imself dro8e along its franc?ises routes from 1aoag to Manila and bac.. %?ese tCo buses became t?e nucleus of t?e biggest transportation business plying betCeen 1aoag and Manila today.K J!ederico Cas t?e Brst to introduce air-conditioned buses in t?e pro8ince, t?e Brst to introduce comfort room in t?e air-conditioned buses and noC t?e !ariAas %ransportation business is t?e biggest transportation business in )locos ,orte and is managed by t?e c?ildren and grandc?ildren.K 5 | P a g e II. RESEARC, DESI-N AND MET,ODO.O-Y !or t?e e7ternal analysis, current and pro=ections on macro- economic statistical data and indicators Cere obtained from diLerent go8ernment Cebsites and publications. !or t?e internal analysis t?e researc?er conduct an inter8ieC Cit? t?e assistant manager of !ariAas %ransit. %?e researc?er also used t?e Bnancial statements gat?ered from Security of &7c?ange Commission DS&CE Cebsite to get t?e Bnancial ratios of companies and to compute t?e compounded annual groCt? rate DCA0E. Scope and limitation Since t?e only present a8ailable data for Bnancial statements in S&C are "$#", t?is paper limits t?e data of computed Bnancial ratios and industry groCt? to year "$#" in internal and e7ternal analysis of t?e company. Also some companies in S&C ?a8e incomplete Bnancial statements and some companies don3t ?a8e records, t?erefore t?e computed CA0 only composes of industry players t?at Bnancial statements are a8ailable in S&C. )n t?e Bnancial statements of !ariAas, t?ere is no a8ailable data of t?e brea.doCn of re8enue on ?oC muc? come from t?e freig?t and from t?e transport ser8ice. %?erefore t?e researc?er limits its BC0 matri7 and uses t?e matri7 as a C?ole. 6 | P a g e 7 | P a g e III. COM%ANY/S VISION AND MISSION +. 1 Mission 0 Vision Stat(m(nt %o become t?e P)11A of public transportation business in t?e P?ilippines. %o be t?e BACMBO,& for t?e ad8ancement of tourism and mobility of t?e !ilipino people t?roug?out t?e entire nation. %o be an A-*OCA%& of e7cellent ser8ice, socially responsible of its passengers and customers %o pro8ide globally competiti8e ser8ice to customers, pro8iding a competiti8e edge in t?e Pro8incial 1and %ransportation )ndustry Cit? t?e use of state of t?e art Buses, Amenities and &Fuipments for t?e con8enience and comfort of t?e customers of !ariAas %ransit. %o pro8ide better and faster modes of transportation for t?e public at t?e same time being cost friendly. %o transport our customers and freig?t as fast and as eIcient as possible. %able # Components +es6,o Comments Customer +es Jfor t?e publicK Products or Ser8ices +es J%o transport our customers and freig?tK JCit? t?e use of state of t?e art Buses, Amenities and &FuipmentsK Mar.ets +es Jin t?e Pro8incial 8 | P a g e 1and %ransportation )ndustryK %ec?nology +es Jt?e use of state of t?e art BusesN Concern for sur8i8al, groCt?, and proBtability ,o J%o eIciently forecast, e8aluate and implement strategies for t?e s?ort term and long term goals of t?e company in order to gain t?e desired earnings t?at Cill be beneBcial not only to t?e company but to t?e employees and customers as Cell.K P?ilosop?y +es J%o become t?e P)11A of public transportation business in t?e P?ilippines.K Self-concept +es J%o pro8ide globally competiti8e ser8ice to customers, 9 | P a g e pro8iding a competiti8e edge in t?e Pro8incial 1and %ransportation )ndustry Cit? t?e use of state of t?e art Buses, Amenities and &Fuipments for t?e con8enience and comfort of t?e customers of !ariAas %ransit. J Concern for public image +es J%o be an A-*OCA%& of e7cellent ser8ice, socially responsible of its passengers and customersK Concern for employees ,o J%o pro8ide globally competiti8e ser8ice to customers by gi8ing employees ser8ice Fuality trainingsK 10 | P a g e ecommended Mission Statement !arinas %ransit, a public transportation company Dser8iceE, is an internal and e7ternal customer-oriented Dp?ilosop?yE Brm C?ic? transports passengers DcustomersE anyC?ere along t?e Manila to )locos route Dmar.etE. )t utili>es neC buses Dtec?nologyE to ac?ie8e ma7imum customer satisfaction DcustomerE. !arinas3 buses promote ?ig? comfort to customers as t?ey tra8el and an ensure safety to customer pac.ages Dself-conceptE. )t obser8es bot? its social and en8ironmental responsibilities Dconcern for public imageE. )n order to satisfy e7ternal customers, !arinas pro8ides training and ot?er necessary beneBts to its internal customers Dconcern for employeesE Cit? t?e end point 8ieC of company3s proBtability Dconcern for groCt?, sur8i8al, and proBtabilityE. ecommended *ision Statement %o be one of t?e leading bus transportation companies of t?e nort?ern part of t?e P?ilippines by "$": Analysis of /oC t?e Company Cascade its Mission and *ision Statements %?e company does not obser8e any Cays on ?oC to communicate its mission-8ision statements to company employees and customers C?ic? is considered to be un?ealt?y for t?e company. ecommended ;ays on /oC t?e Company may communicate its Mission-*ision Statements #. Post Mission-*ision Statements at bus terminals 11 | P a g e ". Post Mission-*ision Statements at company oIces 5. Post Mission-*ision Statements at company buses 4. )nclude Mission-*ision Statements at fare tic.ets 12 | P a g e IV. E1t(rna' Ana'ysis 2. 1 -(n(ra' En*ironm(nt 2.1.1 %o'itia' 3 .("a' S("m(nt Citra Central &7pressCay President Benigno AFuino ))) ga8e t?e green lig?t to Citra Central &7pressCay Corporation to begin constructing t?e P"2.:-billion e7pressCay to connect t?e ,ort? 1u>on &7pressCay D,1&'E and Sout? 1u>on &7pressCay DS1&'E. Aside from t?is neC e7pressCay, t?e -O%C is also pursuing t?e construction of t?e %arlac to 1a (nion &7pressCay D%P1&'E and t?e Cidening and impro8ement of t?e Batangas e7pressCay DS%AE, Abaya said. # ele8ance: Construction Cill start in t?e second Fuarter of "$#4 and is e7pected to be Bnis?ed in t?ree years. )n "$#2, t?is Cill be an opportunity for !ariAas %ransit to e7pand t?eir ser8ices in t?e Sout?ern pro8inces. %?e alternati8e route of %arlac to 1a (nion &7pressCay 1 ?ttp:66CCC.gmanetCor..com6neCs6story65"94:$6economy6business6palace- appro8es-p"2-:-b-s.yCay-connecting-nle7-and-sle7r 13 | P a g e D%P1&'E is an opportunity because it Cill ma.e t?e transportation faster from Manila to )locos. Bullet train system 6 Mot?balled ,ort? rail pro=ect Al8arado said t?e -C Could eit?er pus? for t?e bullet train system or re8i8e t?e mot?balled ,ort?rail pro=ect t?at Could lin. Metro Manila to t?e Clar. international airport in Pampanga. /e said t?e proposed bullet train system Could boost t?e economy of Central 1u>on, particularly in t?e pro8inces of Pampanga, Bulacan, Oambales, Bataan, ,ue8a &ci=a, %arlac and Aurora. %?e proposed railCay Cill co8er t?e entire nort? and sout? netCor.s of t?e P?ilippine ,ational ailCays DP,E. %?e nort? netCor. runs from Manila to 1a (nion, including a line from %arlac to San <ose, ,ue8a &ci=a, and a possible e7tension to Cagayan. %?e sout? netCor. tra8erses from Manila to 1egaspi City, including a line from Calamba to Batangas City. " ele8ance: %?e proposed bullet train system Cill be a t?reat for !ariAas %ransit because bullet train system can be an alternati8e and faster Cay of transportation, t?erefore t?ere is a loC sCitc?ing cost from bus transportation to bullet train transportation. 2 ?ttp:66CCC.p?ilstar.com6?eadlines6"$#46$#6$26#"4::446manila-clar.-bullet-train- pus?ed 14 | P a g e %?e proposal construction of railCay t?at Cill co8er t?e entire nort? and sout? netCor.s of t?e P?ilippine ,ational ailCays DP,E Cill be a t?reat for !ariAas %ransit because t?is can be an alternati8e Cay of transportation, t?erefore t?ere is a loC sCitc?ing cost from bus transportation to railCay transportation. Speed 1imiters and 0PS trac.ing de8ices MA,)1A, P?ilippines - Bus companies s?ould post ?efty safety performance bonds Cit? t?e 1and %ransportation !ranc?ising and egulatory Board D1%!BE t?at Could be forfeited once its 8e?icle is in8ol8ed in a road accident. J%?e bond s?ould at least be P5 million or double t?e acFuisition cost of t?e bus. )f t?e dri8er .noCs t?at t?is Could be forfeited s?ould t?e bus be in8ol8ed in an accident, ?e Could really be careful in dri8ing,K ?e said. %olentino also supported t?e proposal of t?e 1%!B to install speed limiters and recorders to limit t?e speed of passenger buses and record t?e e8ents prior to an accident. 5 ele8ance: 3 ?ttp:66CCC.p?ilstar.com6?eadlines6"$#56#"6#@6#"2@44@6bonds-bus-companies- proposed 15 | P a g e %?e proposal of bonds and installing speed limiters in public utility buses nationCide Cill be a t?reat because of t?e cost t?at Cill be burden by bus companies including !ariAas %ransit C?ic? t?ey are not yet prepared to incur. Mandatory CC%* %?e mandatory installation of closed circuit tele8ision cameras DCC%*E in buses ?as been proposed at t?e /ouse of epresentati8es. Ca8ite ep. &lpidio Bar>aga <r. ?as urged t?e 1and %ransportation !ranc?ising and egulatory Board D1%!BE to reFuire bus operators to install CC%*s as part of t?e solution to t?e rising crimes committed in t?ese 8e?icles. Barga>a said t?e 1%!B s?ould folloC C?at local go8ernment units ?a8e been reFuiring business establis?ments before t?ey are issued business licenses and permits. 4 ele8ance: %?e proposal mandatory installation of closed circuit tele8ision cameras in buses Cill be a t?reat for !ariAas %ransit if soon implemented. As of -ecember "$#", !ariAas %ransit ?as 29 buses on ser8ices, t?erefore t?ere Cill be a great e7pense for !ariAas in installing 4 ?ttp:66CCC.mb.com.p?6solon-urges-ltfrb-to-reFuire-buses-to-install-cct8s6 16 | P a g e CC%*. !ailure to accomplis? t?e mandatory installment of CC%* Cill aLect !ariAas because t?ey Cill ?a8e problems in t?eir business license and permit t?at Cill cause delay in operation and proBt loss. 2.1.) Eonomi S("m(nt ;orld Ban.: Crude Oil, P6barrel A8g. spot price DBrent, -ubai, and ;%)E %able #.# "$# " "$# 5 "$# 4 "$# : "$# 2 "$# 4 "$# 9 "$# @ "$" $ "$" : ,ominal (S -ollars #$: .$ #$: .$ #$: .4 #$" .$ #$$ .4 #$$ .# @@. 2 @@. # @9. 4 @4.$ eal "$$: (S -ollars 94. 2 @@. " @4. 4 @5. " @$. 9 9@. $ 94. 5 9:. 2 94. $ 42." Source: ;orld Ban. Commodity !orecast Price data, October "$#5 !igure #.# 17 | P a g e )n October "$#5 %?e ;orld Ban. released its Commodity !orecast, C?ic? predicts t?at Corld crude oil price Cill decrease from P#$:6barrel in "$#" to P@9.46barrel by "$"$. According to Commodity Price !orecast from )M!, spot a8erage price for crude oil Cill drop to P92.46barrel by "$#9. : ele8ance: %?e table abo8e s?oCs t?e forecast for crude oil from "$#" to "$":. %?e forecast for crude oil price Cill sloCly decrease until "$":. %?is Cill be an opportunity for !ariAas %ransit because loC price of crude oil means loC price of gasoline and diesel, t?erefore t?e e7pense of company for gasoline Cill be lessen. 0-P, )nQation rate, and Peso--ollar &7c?ange rate forecast !or "$#4, t?e ;orld Ban. e7pects groCt? of 2.: percent, also loCer t?an its earlier forecast of 2.4 percent. %?e go8ernment is aiming for a 2.:-4.: percent groCt? t?is year. 5 ?ttp:66.noema.com6y7ptpab6crude-oil-prices-forecast-long-term-to-"$":-data-and- c?arts 18 | P a g e )n "$#:, 0-P groCt? is e7pected to pic. up to 4.# percent, ?ig?er t?an t?e earlier forecast of 2.9 percent, t?e lender said. By "$#2, t?e P?ilippine economy Cill groC 2.: percent. 2 !or t?e P?ilippines, inQation is seen to settle at 4." percent in "$#5, 5.9 percent ne7t year before sloCing doCn to 5.: percent for bot? "$#: and "$#2. J;e see continued appreciation of t?e peso. !or t?is year, it Cill li.ely ?it 54.:$ Dagainst t?e dollarE, underpinned by continued inQoCs in t?is part of t?e Corld,K %an said. Peso-dollar e7c?ange rate is forecast to reac? 5::P# in "$#4, 4$:P# in "$#: and 4#:P# in "$#2.K 4 At#a' !igure #." 6 ?ttp:66CCC.intera.syon.com6business64942#6Corld-ban.-cuts-p?-groCt?-forecast-for- "$#5-"$#4-on-typ?oon-impact 7 ?ttp:66CCC.p?ilstar.com6business6"$#56$"6$#6@$55:26ac?ie8e-9.:-groCt?-target- "$#2-p?l-must-mo8e-8alue-added-c?ain 19 | P a g e %able #." )41) )41+ -D% 4.5 D5HE 4.$ D5HE In5ation Rat( 5.$ D5HE 4.# D5HE For(ast !igure #.5 20 | P a g e %able #.5 )412 )416 )417 -D% 2.: 4.# 2.: In5ation Rat( 5.9 5.: 5.: ele8ance: %?e forecasted gross domestic product and inQation rate for "$#4 up to "$#2 is a minor opportunity for !ariAas %ransit. %?e positi8e rate of 0-P from "$#4 to "$#2 and decreasing inQation rate from "$#4 to "$#2 Cill li.ely result to increase proBt in all industries. At#a' !igure #.4 %able #.4 )41) )41+ %(so3 Do''ar E18an"( Rat( 4":P# 4":P# Source: national statistics coordination board 9 8 ?ttp:66CCC.nscb.go8.p?6stats6pesodollar.asp 21 | P a g e !igure #.: %able #.: )412 )416 )417. %(so3Do''ar E18an"( Rat( 5::P# 4$:P# 4#:P# ele8ance: %?e )ncreasing 8alue of dollar against peso is a t?reat for !arinas %ransit because C?en t?e peso goes doCn, prices of commodities go up especially petroleum, t?erefore t?e price of petrol goes up and t?e fare of public 8e?icles go up as Cell. %?erefore aLecting t?e a8erage !ilipino greatly C?o cannot aLord t?e rise of public fares. )n addition t?ere Could also be less income for t?e company and t?erefore restraining t?eir budget. 22 | P a g e 2.1.+ Soia' S("m(nt 54 deat?s daily because of road cras?es and traIc congestion MA,)1A - Bad dri8ing ?abits and pedestrians C?o disobey traIc rules are to blame for an estimated 54 people C?o die daily in t?e P?ilippines due to road cras?es, a former 1and %ransportation OIce c?ief said %uesday. N)f Ce loo. at t?e statistics, alt?oug? it is spotty, Ce put t?e deat? rate at 54 deat?s daily because of road cras?es, =ust road cras?es. %?at includes collisions, run o8ers, e8eryt?ing t?at in8ol8es road traIc. %?atRs about #.": deat?s e8ery ?our,N ?e said in a Mornings SA,C inter8ieC. /e also said ?e Could ground entire bus Qeets if an accident results in deat?. J%o me, one deat? is too many,N ?e said. @ Manila, P?ilippines T %raIc in Metro Manila causes t?e country to lose a C?opping P#4$ billion annually, a Bgure t?at dCarfs t?e amounts lost 8ia t?e contro8ersial por. barrel scam. J%?e Bndings of t?ese studies are essentially t?e same. %?ey peg t?e losses due to traIc at appro7imately at P#4$ billion,K lamented 0alagnara. 9 ?ttp:66CCC.abs-cbnneCs.com6nation6#"6#46#56p?-54-deat?s-daily-due-road-cras?es 23 | P a g e J-irect losses are attributed to Casted gasoline, lost labor ?ours, employment of traIc aides, and Casted electricityU t?e indirect losses refer to Cit?draCal of potential foreign in8estments, missed business opportunities, and reduced capital inQoC,K ?e e7plained. #$ ele8ance: %?e ?ea8y traIc in Metro Manila greatly aLects t?e industry. %?e traIc congestion is one of t?e ma=or causes of deat? and road accidents. Also ?ea8y traIc causes tra8el time delays, increases fuel cost, and increases air pollution and carbon dio7ide emissions C?ic? may contribute to global Carming. 2.1.2 T(8no'o"ia' S("m(nt %ransport App -epartment of %ransport and Communication in partners?ip Cit? t?e Metro Manila -e8elopment Aut?ority and Cebu City 0o8ernment, Cill ?ost t?e Brst national transport app de8elopment competition. ;eb0ee. is present and acti8ely participating in t?is e8ent. &8eryone is in8ited and con8ened to de8elop application based on tCo neC .inds 10 ?ttp:66CCC.mb.com.p?6metro-manila-traIc-costs-p#4$b-a-year6 24 | P a g e of open dataU Brst is made publicly a8ailable by t?e agencies and second is concerning location and ser8ice information as Cell as traIc incident streams in Manila and Cebu City. By a 5-mont? de8elopment period participants Cill Cor. Cit? 8olunteer mentors to build inno8ati8e solutions for t?e transportation c?allenges. ## %?e role of transit apps is to pro8ide real-time information as to C?en buses Cill arri8e at a particular stop. %ransit apps are able to do t?is by accessing real-time bus location information.K ;?ile t?e term Ntransit appN refers to an application a8ailable for a smart p?one, particularly eit?er t?e Apple iOS or t?e Android platforms, most transit apps are also a8ailable on a computer, so e8en if you are stuc. in t?e p?one Ndar. agesN you can use t?em to plan a perfect e7it from your ?ome or Cor.place.K #"
ele8ance: As to go8ernment trying to de8elop transit app t?at Cill pro8ide real time data for citi>en, t?is could be an opportunity for !ariAas %ransit to apply it in its operation. )ntegrating t?is .ind of tec?nology Cill surely pro8ide better ser8ice and Cill attract customers. 0PS trac.ing system 11 ?ttp:66Cebgee..p?6dotc-p?ilippine-transit-app-c?allenge6 12 ?ttp:66publictransport.about.com6od6%ransitV%ec?nology6a6%ransit-Apps.?tm 25 | P a g e ;it? today3s increased fuel costs and tig?t budgets at all go8ernmental le8els, bus companies are under pressure to perform Cit? feCer resources. 1uc.ily, tec?nology is ma.ing it easier. One of t?e most eLecti8e Cays for a 8e?icle-based organi>ation to stay up and running and competiti8e is by implementing 0PS-based trac.ing, a8ailable in a 8ariety of softCare platforms from numerous 8endors. Almost e8eryt?ing monitored by 0PS 8e?icle trac.ing can Cor. to ?elp bring doCn fuel e7penditures for an organi>ation. !or e7ample, speeding is a ?uge factor in ?ig? fuel usage. A 0PS trac.ing solution can pro8ide speed information and send alerts C?en a 8e?icle e7ceeds t?e speed limit. &7cessi8e idling can also contribute to ?ig? fuel costs. A 0PS Qeet trac.ing system can ?elp reduce idling times by alerting t?e user C?ene8er a 8e?icle idles longer t?an a pre-set duration. By using t?e tools in 0PS Qeet trac.ing, a bus company can certainly ser8e its clients better. 0etting reports of a 8e?icle3s route can ?elp t?e user trac. arri8als and departures. By pro8iding accurate and 8eriBable proof of ser8ices, it3s a 8aluable tool for re8ieCing routes and freFuency of stops, C?ic? can ?elp a company streamline operations and run more eIciently. #5 13 ?ttp:66CCC.masstransitmag.com6article6#$4:5":@6gps-monitoring-.eeps-buses-on- trac.WpageX# 26 | P a g e 0PS trac.ing also deli8ers accurate, up-to-date mapping Cit? traIc conditions. Some 0PS solutions ?a8e partnered Cit? trusted resources suc? as 0oogle Maps, C?ic? pro8ides >oom capabilities all t?e Cay doCn to street le8el. -ispatc?ers can use t?is information to ad=ust routes if necessary, ?elp dri8ers a8oid delays or ma.e last- minute c?anges to ser8ice. 0PS Qeet trac.ing can also ?elp impro8e security and safety for dri8ers and passengers ali.e. &7ample a bus go missing for C?ate8er reason, 0PS can ?elp a company reco8er it and any on board eFuipment Fuic.ly. Some systems e8en oLer features t?at send an alert if a 8e?icle is used during oL-?ours. )f t?e bus goes oL its route at any time, t?e system Cill .noC. And in t?e unli.ely but not undocumented e8ent t?at a bus ?as been stolen, t?ere isn3t a faster Cay to trac. it doCn. #4 ele8ance: )ntegrating 0PS trac.ing system Could increase security and safety, reduce fuel costs, and impro8e customer ser8ice. %?is could be an opportunity for !ariAas %ransit to pro8ide better ser8ice and attract customers. /ybrid bus 14 ?ttp:66CCC.masstransitmag.com6article6#$4:5":@6gps-monitoring-.eeps-buses-on- trac.WpageX" 27 | P a g e /ybrid bus tec?nology is similar to t?at used in ?ybrid cars and truc.s, Cit? options for bot? parallel and series dri8e train designs. %?ese buses employ similar tec?nology including regenerati8e bra.ing, electric motors, and battery storage. One main diLerence is t?at most ?ybrid buses are coupling diesel-fuelled engines Cit? electric motors instead of t?e typical gasoline-electric ?ybrid conBgurations a8ailable in lig?t duty 8e?icles. Ma7imi>ing t?e beneBts from t?ese buses reFuires optimi>ing t?e ?ybrid system for t?e transit bus routes, C?ic? mig?t be aLected by t?e terrain t?e bus tra8els or C?et?er t?e bus freFuently tra8els at freeCay speeds or stays on city streets. /ybrid diesel- electric buses are a8ailable, and t?ese can oLer loC or >ero local air pollutant t?at Could beneBt t?e &cological crisis t?at is in air pollution t?at contributed greatly in 0lobal ;arming. Also t?e noise emission t?at a ?ybrid 8e?icle could release is e7tremely loC C?en operated in electric mode. /ybrid buses, using an on-board battery toget?er Cit? a diesel engine, oLer emissions beneBts, especially C?en operating in urban areas on battery poCer, Cit? regenerati8e bra.ing. #: ele8ance: As of <anuary "$#4, t?e ?ybrid bus in t?e P?ilippines is only a8ailable in Ma.ati City. #2 %?e trend of /ybrid transportation is not yet 15 ?ttp:66arc?i8e.is64uc" 16 ?ttp:66CCC.mb.com.p?6si7-?ybrid-buses-ply-ma.ati-city6 28 | P a g e adopted by pro8incial bus line operators because of ?ig? cost for using t?at tec?nology and it3s more ad8isable to use it in a s?ort distance tra8el. Anot?er t?ing to consider is t?e location and building of c?arging station for ?ybrid buses. %ime Cill tell ?oC far manufacturers can go to impro8e emissions and to de8elop ?ybrid transit buses in long distance tra8el, C?ile loCering t?e o8erall cost of t?e buses C?ic? Could attract in8estors greatly t?erefore creating an opportunity. 29 | P a g e 2.1.6 En*ironm(nta' S("m(nt Senate Bill no. #24 introduced by Senator %rillanes )*, entitled J&lectric, /ybrid and Ot?er Alternati8e !uel *e?icles )ncenti8es Act of "$#5. J)t3s an act pro8iding incenti8es for t?e manufacture, assembly, con8ersion and )mportation of electric, ?ybrid and ot?er alternati8e fuel 8e?icles, for ot?er purposes.K #4
%?e Senate bill no. #24 Cill grant Bscal and non-Bscal incenti8es for t?e importation and manufacture of electric, ?ybrid and ot?er 8e?icles t?at use alternati8e sources of energy suc? as, but not limited to, solar, Cind, ?ydrogen fuel cell, compressed natural gas or liFueBed natural gas, met?ane and liFueBed petroleum gas. Manufacturers and assemblers Cill be e7empted from paying and duties, as Cell as 8alue- added ta7 for purc?ase and importation of raC materials, spare parts, components and capital eFuipment used in t?e manufacture or assembly of A!*s for nine years. #9 ele8ance: %?is bill Cill promote t?e Cidespread use of ?ybrid and 8e?icles using alternati8e fuels in t?e country in order to protect t?e 17 ?ttp:66senate.go8.p?6lisdata6#:@@$#5""4Y.pdf 18 ?ttp:66gotecotec?.com6p?ilippine-senate-appro8e-alternati8e-fuel-8e?icle-act6 30 | P a g e en8ironment and reduce t?e eLect of global Carming. %?is senate bill Cill some?oC reduce t?e problem of manufacturers in terms of cost in importing and producing ?ybrid 8e?icles. %?is Cill only create an opportunity for !ariAas %ransit if t?e prices of ?ybrid 8e?icles Cill be aLordable and t?e problem in c?arging station Cill be resol8ed. Senate Bill no."2 introduced by Senator Pia Cayetano, entitled NSustainable %ransportation Act of "$#5K. J)t3s an act promoting sustainable and alternati8e modes of transportation and ot?er mobility opportunity to impro8e air Fuality, increase eIciency, reduce congestion and contribute to positi8e ?ealt? impacts in our society.K #@ %?e purpose of JSustainable %ransportation Act of "$#5K is to de8elop sustainable and alternati8e modes of transportation so as to reduce green?ouse gas emissions, manage energy consumption, use precious urban areas eIciently, reduce time and tra8el costs, as Cell as promote an acti8e lifestyle. %?e bill mandates t?e -epartment of %ransportation and Communications D-O%CE and t?e ,ational &conomic -e8elopment Aut?ority D,&-AE to come up Cit? a sustainable transport action plan t?at Could ac?ie8e a Jmode s?ift targetK o8er a period of time. %?e bill includes t?e pro8ision of adeFuate Cal.Cays t?at alloC safe pedestrian passage. %?e bill also includes t?e designation of bi.e lanes, and establis?ment of bicycle par.ing spaces and bi.e rac.s, to promote bicycle use. 19 ?ttp:66senate.go8.p?6lisdata6#:954#5$4"Y.pdf 31 | P a g e SB ,o. "2 also recogni>es t?e fact t?at rail transport systems are sometime too e7pensi8e and ta.e some time to construct. Because of t?is, t?e bill recommends t?e commissioning of Bus apid %ransit DB%E systems C?erein sections of roads be designated e7clusi8ely for buses t?at Could operate li.e trains. "$ ele8ance: %?e SB ,o. "2 Cill ?elp reduce t?e daily traIc =am, t?e smog, and ot?er air pollutants produced by 8e?icles. %?e proposed Bus %ransit System DB%E Cill be an opportunity for !ariAas to ?a8e a safe and secure public transport system. 2.) In$#stry an$ Comp(titor Ana'ysis 2.).1 In$#stry En*ironm(nt %?e !ariAas %ransit belongs in t?e ,ort?ern 1u>on Pro8incial 1and %ransportation industry. ,ort?ern 1u>on Pro8incial 1and %ransportation is t?e mo8ement of people and goods from one location to anot?er, from t?e ,C to t?e ,ort?ern 1u>on pro8incial areas and 8ice 8ersa. 20 ?ttp:66CCC.t?elobbyist.bi>6congress-neCs6item6"5$-sustainable-mass-transport- seen-as-solution-to-countryG&"G9$G@@s-traIc-Coes 32 | P a g e Passenger transport may be public, C?ere operators pro8ide sc?eduled ser8ices, or pri8ate. !reig?t transport ?as become focused on containeri>ation, alt?oug? bul. transport is used for large 8olumes of durable items. %ransport plays an important part in economic groCt? and globali>ation, but ?as a deteriorating impact on t?e en8ironment. %?ere are #" industry players in t?e ,ort?ern 1u>on Pro8incial 1and %ransportation. %?ese are t?e folloCing: #. 0enesis ". Pangasinan !i8e Star 5. P?ilippine abbit 4. *ictory 1iner :. *iron 2. Partas 4. !ariAas 9. !lorida 9. Maria de 1eon 10. Autobus 11. !ranco !rederico 33 | P a g e 12. -ominion 34 | P a g e %able #.2 1ist of Brand6Manufacturer of bus in t?e P?ilippines: Body Manufacturers6re- manufacturer of bus in t?e P?ilippines: #. 0olden -ragon bus ". /iger Bus 5. /ino Motors 4. /yundai Motor Company :. Ming 1ong 2. ,issan -iesel 4. *ol8o Buses 9. O?eng>?ou +utong Bus @. -aeCoo Bus #$. )su>u Motors ##. Mitsubis?i !uso %ruc. and Bus Corporation #". MA, %ruc. Z Bus #5. Mercedes-Ben> #. Aspire Auto Parts and epair Ser8ices )nc. ". -el Monte Motor ;or.s, )nc. 5. Pilipinas /ino6Parte7 Bus Body 4. Alma>ora Motors Corporation :. Santarosa P?ilippines 2. <SP0 Bus Body 4. Bataan Automoti8e emanufacturing DBAE Bus Body 9. MO+O Bus Body Manufacturing @. Andel P?ilMotor #$. %rans-Oriental Motor Builders ##. <AC0 (nited &nterprises, )nc. #". 0olden Asia Automoti8e Builders )nc. #5. AB%ii D(nder <AC 1iner 0roupE #4. <M Motors P?ils. Corp. Source: en.Ci.ipedia.org "# 21 ?ttp:66en.Ci.ipedia.org6Ci.i61istVofVbusVcompaniesVofVt?eVP?ilippines 35 | P a g e Compo#n$($ Ann#a' -ro9t8 Rat( :rom )44; to )41) %able #.4 )ndustry Players "$$9 "$$@ "$#$ "$## "$#" *ictory 1iner ",594,4#9, "2: ",4:@,:$#, :44 ",:2",594, $@" ",22",4":, 4:9 ",@$#,:##, 599 Pangasinan !i8e Star #,$55,452, ":$ #,$:4,""5, 2$9 #,##",225, 424 #,:"2,"42, @:9 #,245,259, 2$# P?ilippine abbit #9#,4$4,4 45 #2#,:5@,4 :" "5$,45@," 5# "55,9"",2 54 ""2,"94,: "2 Partas 44:,@25," 2" 49#,::5,4 95 :$9,#42,$ 44 :5$,4":,: #: :25,@"9,@ "# 0enesis #4$,#:@,$ 2$ #:$,94@,# 5$ "#",4"@,$ 45 "@@,4@",5 9: 5#4,424,$ $4 *iron 2#,42#,5# # 25,$22,25 $ 2@,@"9,$$ $ @@,224,#4 4 #$$,92:," 44 !ariAas 5:,4#4,@5 4 52,44@,"9 9."9 45,$94,4# @."9 44,#@$,": 4.@# :$,244,$@ $ !lorida #4,4":,4$ 9.24 "4,:4@,44 :.$$ "4,:2@,9@ @.$$ 5#,@":,@4 5 52,"9#,@9 4 %otal e8enue 4,5$$,:92, "4 4,45",$@", @#5 4,422,@44, 9"" :,45#,4@2, 5": :,924,2"#, 42# CA0 Das computed in in8etopedia. com 2.4# 36 | P a g e Mar!(t s8ar( ana'ysis !igure #.2 Critia' s#(ss :ators in t8( in$#stry CSF<1 Finania' %osition %?e Bnancial position is 8ery important. Company must ?a8e strong Bnancial stability in order to sur8i8e t?e industry. CSF<) .oation o: t(rmina' One of t?e factors C?en customers c?oose bus is t?e location of terminal. %?e terminal location must be easily accessible. 37 | P a g e CSF<+ Maint(nan( an$ r(pairs Maintenance and repair is 8ery important. Proper maintenance and repair a8oids 8e?icle failure t?at causes road accidents. CSF<2 C#stom(r S(r*i( )t is 8ery important to gi8e t?e customers t?e best ser8ice t?ey s?ould be e7periencing, gi8ing t?e best ser8ice Cill alCays be remembered by t?e customers and Cill ma.e t?em Cant to go bac. for more. CSF<6 Comp(titi*( Far( One of t?e biggest factors in c?oosing a bus is t?e oLered prices for fare and freig?t. %?e company s?ould be able to oLer aLordable and good oLers to t?e public, and ma.e sure to ma.e t?eir money3s Cort? Cit? good ser8ice and good treatment to all passengers. CSF<7 -oo$ ompany ima"( an$ r(p#tation %?e company3s image and reputation is 8ery important because customers alCays go to t?e .noCn and trusted companies. CSF<= C#stom(r .oya'ty One of t?e big factors t?at .eep t?e company in business is t?e number of customers gi8ing continuous support to t?e business. ;it? 38 | P a g e t?e ?elp of customer loyalty it Cill ?elp t?e company groC and lead to a better and more reliable company. )t Cill be able to impro8e its ser8ices and satisfy t?e customers C?ic? t?e customer Cill alCays loo. for and ma.e t?em come bac. for more. 39 | P a g e 2.).) %ort(r/s Fi*( For(s Ana'ysis !igure #.4 Bar"ainin" %o9(r o: S#pp'i(rs %?e bargaining poCer of supplier is loC, because t?e Pro8incial 1and %ransportation business3s ?as many suppliers to c?oose from concerning its transportation system. !rom its eFuipment3s and parts, t?e company can c?oose as many suppliers as 40 | P a g e t?ey Cant to. Since t?ere are a lot of manufacturing companies C?o oLer t?e same .inds of products. -eterminants: Concentration of Supplier - %?e Supplier group products are not ?ig?ly diLerentiated because t?e products of a particular company for instance Calte7 C?ic? sells engine oil and anot?er supplier C?ic? is s?ell t?at also sells engine oil, is not ?ig?ly diLerent from t?e oil of Calte7, t?erefore t?e supplier group ?as built no sCitc?ing costs. ,umerous Suppliers Conclusion: 1O;, OPPO%(,)%+ Bar"ainin" %o9(r o: C#stom(rs A number of people C?o tra8el in a day. /olidays are t?e pea. seasons C?ic? people go to a 8acation. People C?o ride buses are t?e ones C?o are going ?ome to t?eir pro8ince to 8isit and ?a8e a 8acation and some are tourist to 8isit t?e place and rela7. Passengers e7pect not?ing more t?an to =ust reac? t?eir destination safely. -eterminants: Bac.Card )ntegration T Passengers C?o are discontented Cit? t?e ser8ice of bus companies couldn3t =ust easily c?oose to use t?eir pri8ate cars instead of using public transportation because of ?ig? price of gasoline. 41 | P a g e SCitc?ing Cost - %?e ser8ice it purc?ases from t?e ,ort?ern 1u>on Pro8incial 1and %ransportation )ndustry is standard or undiLerentiated. Conclusion: 1O;, OPPO%(,)%+ Ri*a'ry o: Comp(titorsT i8alry is ?ig? due to more competitors Cit? t?e same ser8ice being oLered. SCitc?ing cost of customers is loC as t?ey can easily from one bus line to anot?er. -eterminants: -i8erse Competitors- Competitors are di8erse in strategies and origins, and relations?ips to t?eir parent companies ?a8e diLering goals and diLering strategies on ?oC to compete and continually run a?ead. /ig? !i7ed Cost- Creates a strong pressure for all bus companies C?ic? often lead to rapidly escalating price cutting C?en e7cess capacity is present. Conclusion: /)0/, %/&A% T8r(at o: N(9 Entrants T %?reat of entry is loC due to t?e complication of netCor.ing diLerent units, and capital reFuirement is ?ig? not only for a single bus but more importantly for ser8icing a C?ole Qeet. %?ey Cill ?a8e a ?ard time gaining mar.et s?are since t?eir credibility ?as not been establis?ed 42 | P a g e -eterminants: Capital eFuirements- %?e need to in8est large Bnancial resources is greatly needed in order to procure buses C?ic? is t?e main asset of t?e Pro8incial 1and %ransportation )ndustry. Product -iLerentiation- )n t?e Pro8incial 1and %ransportation industry t?e ser8ices oLered ?as become a standard ser8ice in C?ic? t?ey pro8ide customer satisfaction, pro8iding t?em c?oices betCeen types of buses. 0o8ernment egulation- %?e 1%!B are noC strict in issuing license and business permit since t?e incident of s.yCay and mountain pro8ince bus cras?. Conclusion: 1O;, OPPO%(,)%+ T8r(at o: S#>stit#t(s T /ig?, because t?ey are many alternati8e Cay of transportation going to 1aoag. &7amples of t?is are Airplanes, Boats, and Pri8ate Cars. -eterminants: SCitc?ing Cost - %?e sCitc?ing cost of one Bus Company to anot?er is closely eFual to one anot?er in terms of price and ser8ices. Airline - %?is alternati8e transportation is costly more t?an bus but oLers better ser8ice Conclusion: /)0/, %/&A% 2.).+ Comp(titor Ana'ysis %op " direct competitors of !ariAas %ransit: #. *iron %ransportation Company )ncorporated 1ocation: Corner #"$@ Blumentritt and -apitan Streets, 43 | P a g e Sampaloc, Manila. -estinations: %?e city of %arlac, -agupan City in Pangasinan pro8ince, San !ernando in 1a (nion pro8ince and *igan City in )locos Sur pro8ince all in t?e nort? of 1u>on. %elep?one ,umbers: [25" 44# 2:99 ". !lorida Bus 1ine 1ocation: 1acson St D0o8. !orbesE corner &spana Dnear (S%E in Manila -estinations: Metro Manila - ,ort?ern 1u>on Pro8inces %elep?one ,umbers: [25" 45# 4445 %able #.9 C)%& )A !ariAas %ransit !lorida *iron ,o. of years e7isten ce 45 years :2 years 52 years %ermin al 1ocatio n #"59 A./. 1acson St. Sampaloc, Metro Manila 1acson St D0o8. !orbesE corner &spana Dnear (S%E in Manila #"$@ Blumentritt Cor. -apitan St., Sampaloc #$$$ Manila %arget Areas Metro Manila, )locos Sur, )ocos ,orte,Pangasinan,% arlac, Pagudpud Metro Manila, )locos Sur, )ocos ,orte,Pangasinan,% arlac, Cagayan Metro Manila, )locos Sur, )ocos ,orte,Pangasinan,% arlac *igan Ser8ice Public transportation and freig?t Public transportation and freig?t Public transportation and freig?t 2$$ 2:$ 22$ 44 | P a g e !are 4$$ 9$$-9:$ 4:$ 9$$-9:$ 42$ 9$$-9:$ e8enu e "$#" P:$,244,$@$ P52,"9#,@94 P#$$,92:,"44 Mar.et S?are $.92G $.2"G #.4"G COM%ETITIVE %ROFI.E MATRIX %able #.@ !ariAas !lorida *iron CRITICA. SUCCESS FACTORS ?T R S R S R S #. !inancial position .#2 # .#2 " ."4 " .49 ". 1ocation of terminal .#" " ."4 " ."4 " ."4 5. Maintenance and repairs .#2 4 .24 " .5" 4 .24 4. Customer Ser8ice .#2 " .5" " .5" 5 .49 :. Competiti8e !are .#2 4 .24 5 .49 5 .49 2. 0ood company image and reputation .#" 4 .49 " ."4 4 .49 4. Customer loyalty .#" " ."4 # ."4 5 .52 %O%A1 #.$$ ".4" ".$9 5.44 %?e ?ig?est is *iron Cit? score of 5.44. Second is !ariAas Cit? score of ".4". 1ast is !lorida Cit? score of ".$9. Critia' S#(ss Fators 45 | P a g e #. !inancial position Ratin" 1 !ariAas in terms of Bnancial position is 8ery Cea.. %?e company ?as negati8e compounded percentage groCt? in proBts in t?e past 5 years. Ratin" 1 !lorida in terms of Bnancial position is Cea.. )n t?e year "$#", !lorida still ?as t?e loCest re8enue in t?e nort?ern pro8incial land transportation industry. Ratin" ) *iron in terms of Bnancial position is Cea.. %?e company ?as net loss of P"":,2#:.$$ in t?e year "$#". ". 1ocation of terminal Ratin" ) !ariAas location is in #"59 A./. 1acson St. Sampaloc, Metro Manila. %?e location is easy to access but t?ere is a problem in traIc congestion. Ratin" ) !lorida location is in 1acson St D0o8. !orbesE corner &spana Dnear (S%E in Manila. %?e location is easy to access but t?ere is a problem in traIc congestion. Ratin" ) *iron location is in #"$@ Blumentritt Cor. -apitan St., Sampaloc #$$$ Manila. %?e location is easy to access but t?ere is a problem in traIc congestion. 5. Maintenance and repairs Ratin" 2 !ariAas rating in maintenance and repairs are based on t?e case of bus accident. %?e company ?as only " ma=or bus accident reported in neCs t8. 46 | P a g e Ratin" ) !lorida rating in maintenance and repairs are based on t?e case of bus accident. %?e company ?as many ma=or accidents including t?e bontoc tradegy. Ratin" 2 *iron rating in maintenance and repairs are based on t?e case of bus accident. %?e company ?as only 4 ma=or bus accident reported in neCs t8. 4. Customer Ser8ice Ratin" ) !ariAas still uses manual recording system ma.ing t?eir operation sloCly compared to its competitors Ratin" ) !lorida rating in customer ser8ice is based on its loC re8enue compared to *iron and !ariAas. Ratin" + *iron rating in customer ser8ice is based on its ?ig? re8enue compared to !lorida and !ariAas. :. Competiti8e !are Ratin" 2 !ariAas bus fare range from 2$$ to 9:$ depending on bus type. %?e company ?as t?e loCest fare compared to its competitors. Ratin" + !lorida bus fare range from 2:$ to 9:$ depending on bus type. %?e company ?as ?ig? fare compared to !ariAas. Ratin" + *iron bus fare range from 22$ to 9:$ depending on bus type. %?e company ?as ?ig? fare compared to !ariAas. 2. 0ood company image and reputation 47 | P a g e Ratin" 2 !ariAas rating in good company image and reputation is based on t?e years of e7istence of t?e company and t?e case of bus accidents reported. %?e company is noC 45 years of e7istence. Ratin" ) !lorida rating in good company image and reputation is based on t?e years of e7istence of t?e company and t?e case of bus accidents reported. %?e company is noC :2 years of e7istence. Ratin" 2 *iron rating in good company image and reputation is based on t?e years of e7istence of t?e company and t?e case of bus accidents reported. %?e company is noC 52 years of e7istence. 4. Customer loyalty Ratin" ) !ariAas rating in customer loyalty is based on its mar.et s?are. %?e company ?as $.92G of mar.et s?are in year "$#". Ratin" 1 !lorida rating in customer loyalty is based on its mar.et s?are. %?e company ?as $.2"G of mar.et s?are in year "$#". Ratin" + *iron rating in customer loyalty is based on its mar.et s?are. %?e company ?as #.4"G of mar.et s?are in year "$#".
2.+ S#mmary an$ Con'#sion 2.+.1 S#mmary o: Ma@or Opport#niti(s an$ T8r(ats %able #.#$ Opport#niti(s Maro (n*ironm(nt S("m(nt 48 | P a g e Construction of e7pressCay connecting ,ort? 1u>on &7pressCay D,1&'E and Sout? 1u>on &7pressCay DS1&'E Political Alternati8e route of t?e %arlac to 1a (nion &7pressCay D%P1&'E Political -e8elop %ransport App %ec?nological )ntegrating 0PS trac.ing system %ec?nological T8r(ats Maro (n*ironm(nt S("m(nt Proposal construction of bullet train system Political Proposal construction of railCay t?at Cill co8er t?e entire nort? and sout? netCor.s of t?e P?ilippine ,ational ailCays DP,E Political 49 | P a g e 2.+.) E1t(rna' Fator E*a'#ation Matri1 %able #.## A(y Int(rna' Fators ?(i" 8t Ratin " ?(i"8t ($ Sor( Opport#niti(s Construction of e7pressCay connecting ,ort? 1u>on &7pressCay D,1&'E and Sout? 1u>on &7pressCay DS1&'E .#$ 4 $.4 Alternati8e route of t?e %arlac to 1a (nion &7pressCay D%P1&'E .#$ 4 $.4 !orecast of ;orld Crude Oil price Cill decrease from P#$:6barrel in "$#" to P@9.46barrel by "$"$ .$4 5 ."# -e8elop %ransport App .#$ 4 $.4 )ntegrating 0PS trac.ing system .#$ 4 $.4 Proposed Bus apid %ransit System .$2 5 .#9 -ecreasing forecasted inQation rate from "$#4 to "$#2 .$4 5 ."# )ncreased 0-P rate for t?e years "$#4 to "$#2 .$4 5 ."# T8r(ats Proposal construction of bullet train system .#$ # .#$ Proposal construction of railCay t?at Cill co8er t?e entire nort? and sout? netCor.s of t?e P?ilippine ,ational ailCays DP,E .#$ # .#$ Proposal mandatory of installing CC%* .$2 " .#" !orecasted )ncreasing Peso -ollar &7c?ange ate up to "$#2 .$4 " .#4 Tota' 1.4 ).;= 50 | P a g e Opport#niti(s Ratin"B 2 T8( onstr#tion o: (1pr(ss9ay onn(tin" Nort8 .#Con E1pr(ss9ay DN.EXE an$ So#t8 .#Con E1pr(ss9ay DS1&'E is a ma=or opportunity for !ariAas to e7pand t?eir ser8ices in t?e Sout?ern pro8inces. Ratin"B 2 T8( A't(rnati*( ro#t( o: t8( Tar'a to .a Union E1pr(ss9ay DT%.EXE is a ma=or opportunity for !ariAas. %?e %arlac to 1a (nion &7pressCay D%P1&'E Cill ma.e t?e transportation faster from Manila to )locos, t?erefore less cost for gasoline. Ratin"B + T8( :or(ast o: 9or'$ r#$( oi' pri( 9i'' $(r(as( :rom F1460>arr(' in )41) to FG;.=0>arr(' >y )4)4 is a minor opportunity for !ariAas because t?ere Cill be less e7pense for gasoline. Ratin"B 2 D(*('opin" Transport App is a ma=or opportunity for !ariAas to apply it in its operation. )ntegrating t?is .ind of tec?nology Cill certainly pro8ide competiti8e ad8antage against its competitors. Ratin"B 2 Int("ratin" -%S tra!in" syst(m is a ma=or opportunity for !ariAas to increase security and safety, reduce fuel costs, and impro8e 51 | P a g e customer ser8ice. %?is opportunity Cill pro8ide !ariAas %ransit a better ser8ice and customer attraction. Ratin"B + T8( propos($ B#s Transit Syst(m DBRTE is a minor opportunity for !ariAas. %?is opportunity Cill pro8ide a safe and secure public transport system and Cill reduce t?e daily traIc =ams, t?erefore less e7pense for gasoline. Ratin"B + D(r(asin" :or(ast($ in5ation rat( :rom )412 to )417 and Inr(as($ -D% rat( :or t8( y(ars )412 to )417 are minor opportunities for !ariAas. %?e forecasted inQation rate and 0-P rate Cill li.ely result to increase in industry re8enue. T8r(ats Ratin"B 2 T8( proposa' onstr#tion o: >#''(t train syst(m is a ma=or t?reat for !ariAas %ransit because bullet train system can be an alternati8e and faster Cay of transportation, t?erefore t?ere is a loC sCitc?ing cost from bus transportation to bullet train transportation. Ratin"B 2 T8( proposa' onstr#tion o: rai'9ay t8at 9i'' o*(r t8( (ntir( nort8 an$ so#t8 n(t9or!s o: t8( %8i'ippin( Nationa' Rai'9ays D%NRE is a ma=or t?reat for !ariAas %ransit because t?is can be an alternati8e Cay of transportation, t?erefore t?ere is a loC sCitc?ing cost from bus transportation to railCay transportation. 52 | P a g e Ratin"B + T8( proposa' man$atory o: insta''in" CCTV is minor t?reat for !ariAas %ransit if soon implemented because t?ere Cill be a great e7pense for !ariAas in installing CC%* in t?eir 29 buses on ser8ices. !ailure to accomplis? t?e mandatory installment of CC%* Cill aLect !ariAas because t?ey Cill ?a8e problems in t?eir business license and permit t?at Cill cause delay in operation and proBt loss. Ratin"B + T8( :or(ast($ inr(asin" %(so Do''ar E18an"( Rat( #p to )417 is a minor t?reat for !arinas %ransit because C?en t?e peso goes doCn, prices of commodities go up especially petroleum, t?erefore t?e price of petrol goes up and t?e fare of public 8e?icles go up as Cell. 53 | P a g e V. Int(rna' Ana'ysis 6.1 Company %(r:orman( !ariAas %ransit re8enue from "$$9 to "$#" !igure #.9 %?e grap? abo8e s?oCs t?e increasing re8enue of !ariAas %ransit from "$$9 to "$#". 54 | P a g e -ro9t8 Ratio Compounded percentage groCt? in total sales !igure #.@ %?e grap? abo8e s?oCs t?e compounded groCt? percentage in total sales of !ariAas %ransit from "$$9 to "$#". %?e re8enue from "$## to "$#" increased by 4.5G. %?e re8enue from "$#$ to "$## increased by #$G. %?e re8enue from "$$@ to "$#$ increased by #4G. %?e re8enue from "$$9 to "$$@ increased by 5.4G. %?e re8enue from "$$4 to "$$9 decreased by -"#G. 55 | P a g e ,et 1oss Annual percentage groCt? in proBts !igure #.#$ %?e grap? abo8e s?oCs t?e negati8e percentage groCt? in proBts of !ariAas %ransit from "$$9 and "$#$ up to "$#". %?e negati8e percentage groCt? in proBts from "$$4 to "$$9 is -$.::. %?e negati8e percentage groCt? in proBts from "$$@ to "$#$ is -$.44. %?e negati8e percentage groCt? in proBts from "$#$ to "$## is -:2.:". %?e negati8e percentage groCt? in proBts from "$## to "$#" is -#.$4. 56 | P a g e %ro&ta>i'ity Ratio 0ross ProBt Margin !igure #.## %?e grap? abo8e s?oCs t?e gross proBt, operating, and net proBt margin of !arinas transit from "$$9 to "$#". %?e gross proBt margin increased from D$.$#E to "5.4$. %?e operating proBt margin increased from $.$# to $.$". %?e net proBt margin decreased from $.$# to -$.$#. 57 | P a g e Ati*ity Ratio !igure #.#" %?e grap? abo8e s?oCs t?e increasing B7ed assets turno8er ratio of !arinas transit from $.4# D"$$9E to 44.2" D"$##E. %?en decreased from 44.2" D"$##E to :@.29 D"$#"E. %?e ?ig?er t?e B7ed assets turno8er ratio t?e better. )t means t?at !arinas transit are ma7imi>ing t?e utili>ation of t?eir assets. 58 | P a g e .(*(ra"( ratio -ebt to total assets !igure #.#5 %?e grap? abo8e s?oCs t?e debt to total assets ratio of !arinas transit from "$$9 to "$#". %?e debt to total assets ratio increased from $.$$" to $.$2. %?e loCer t?e debt to total assets ratio t?e better. )t means t?at !arinas transit assets can co8er all of t?eir debt. 59 | P a g e .iH#i$ity ratio !igure #.#4 %?e grap? abo8e s?oCs t?e decreasing current ratio of !arinas transit from "$$9 to "$#". %?e current ratio of "$$9 is #59.@:. %?e current ratio of "$$@ is #:$.#". %?e current ratio of "$#$ is 95.@". %?e current ratio of "$## is 9".4:. %?e current ratio of "$#" is :4.92. 6.) Int(rna' A#$it 60 | P a g e 6.).1 Mana"(m(nt %?e company ?as a total of @2 employees. Planning acti8ities are done by t?e top management. %?e administration and management creates neC plans C?ic? Cill be adapted by t?e employees. %?is department is also responsible for organi>ing and super8ising t?e business acti8ities of t?e company. As stated in t?e inter8ieC by Ms. Soniata, assistant manager in !ariAas %ransit manila oIce t?e company ob=ecti8es and goals are not measured and Cell communicated to t?e employees. Also t?ere is no mission-8ision posted anyC?ere in t?e oIce. %?e company doesn3t ?a8e mar.eting department. %?e role of mar.eting is done by t?e admin and management. ,ot all managers do t?e planning only t?e top management. %?e / manager Cill be t?e one to inter8ieC t?e applicants and screen if t?e applicant FualiBes t?e =ob speciBcations. An orientation is gi8en to t?e employees after t?e ?iring. According to Ms. Soniata, t?e company are not conducting seminar and trainings for t?e employees t?erefore t?e employees3 moral are loC. %?e employees are Cor.ing in t?e company for many years. %?ere is a loC employees3 turno8er and absenteeism. Ms. Soniata said t?ere is ne8er problem about absenteeism because t?eir policy is no Cor. no pay. %?e management doesn3t gi8e any reCards or additional beneBts to t?e employees. %?e 61 | P a g e only beneBts t?at Ms. Soniata stated t?at employees recei8ed are SSS, Pag-ibig, #5t? mont? pay and C?ristmas bonus. !igure#.#: Organi>ational Structure !igure #.#2 62 | P a g e President T %?e one C?o pro8ides t?e leaders?ip of t?e company at t?e forefront of t?e industry. -e8elop a strategic plan to ad8ance t?e company3s mission and ob=ecti8es and to promote re8enue, proBtability, and groCt? as an organi>ation. e8ieC acti8ity reports and Bnancial statements to determine progress and status in attaining ob=ecti8es and re8ise ob=ecti8es and plans in accordance Cit? current conditions. Operations Manager T %?e Operations Manager is t?e one C?o is responsible for close super8ision of terminal personnel to facilitate timely and accurate bus tra8els. e8ieCs standard operation procedures and monitors assignments of bus operators Dconductors and dri8ersE. !inance Manager T %?e !inance Manager is t?e one responsible, super8ises and re8ieCs t?e company3s Bnancial records. Assists in budget process, annual audits, and produces Bnancial reports. /andles 63 | P a g e employees3 payrolls and t?e one C?o appro8es and controls t?e budget for all t?e department of t?e company. /uman esource Manager T %?is position is responsible for policies and practices t?at deal Cit? recruitment and selection of employees, training and de8elopment, impro8ement of performance and producti8ity, pay and fringe beneBts and creating good relations?ips betCeen managers and employees. Administration Manager T %?e Administration Manager is t?e one C?o is in c?arge of procurement, responsible for t?e company3s oIce Bles and documents and t?e one C?o manages administrati8e functions including contacts of company suppliers, in8entories, eFuipment, oIce supplies and ser8ices. Accounts Manager T /andles t?e portfolio of accounts, usually t?e company3s largest accounts, for ma=or ?ig?-proBle clients and top business leaders. %?e one C?o connects t?e client and t?e company, under t?e accounts manager are t?e accounts e7ecuti8e. %?eir =ob is to regularly call t?e clients for bidding reports and meetings. %?ey also gi8e Cee.ly report to t?e accounts manager to .noC t?e status of t?eir speciBc accounts. /uman esource %?e tas. C?ere t?e company usually screen and get e7perienced professional bus dri8ers Cit? good record on dri8ing and preferably .noCs t?e route of t?e road of Manila going to )locos and from )locos 64 | P a g e going bac. to Manila 8ice-8ersa. &7pert bus mec?anics are also screened if t?ey are Cell e7perienced on bus problems and mec?anics C?o studied and Bnis?ed 8ocational course li.e automoti8e and do ?a8e a 8ocation certiBcate t?at ser8es a proof t?at t?ey Cere trained Cill be a big factor for t?e applicant and for t?e company. ,eCly graduates C?o are also applying for secretarial position are also screened. )locano language is also a reFuirement C?en applying for a position in t?e company, since t?e company is an )locano family oCned company, t?e oCner and t?e family decided and include t?is as a must for t?em to ?a8e a good communication and relations?ip betCeen an employee and a superior and to ?a8e t?e )locano spirit in t?e company. %?e company also recei8es needed manpoCer from referrals of t?eir corporate clients and from t?eir employees as Cell. !irst step is for / to post a8ailable =obs, t?en to screen applicants C?et?er t?ey are eligible. After t?at step it is up to t?e / people to inform t?e applicant if ?e ma.es it t?roug? for orientation or ?e doesn3t. 6.).)Mar!(tin" 65 | P a g e %?e Sales from "$#$ to "$## ?as increased by #$G t?erefore t?e Brm ?a8e an eLecti8e sales organi>ation and good customer ser8ice. According to Ms. Soniata, t?e company doesn3t conduct mar.et researc?. %?e company doesn3t ?a8e mar.eting department. %?e role of mar.eting is done by t?e admin and management. %?e company uses tourism promotion cooperated Cit? go8ernment programs, discounts, !aceboo. page, and tCitter in t?eir promotion, ad8ertising, and publicity strategy. According to Ms. Soniata, t?e company does not ma.e muc? eLorts and ma.e use of budget in terms of promotion, ad8ertising, and publicity strategy. According to Ms. Soniata, t?e bus fare are regulated by t?e 1%!B so t?ey can3t =ust increase t?eir price according to t?eir Cill. %?eir price ?as to be aligned Cit? t?e price range imposed by 1%!B. %?e company3s ser8ices are priced competiti8ely. As of <anuary "$#4, !ariAas %ransit ?as one of t?e loCest bus fare as compared to its competitors. %able #.#" Bus !ares Manila T 1aoag !ariAas !lorida *iron S%A,-A -6!)S%C1 ASS6S(P& -&1('& 2$$ 4$$ 9$$-9:$ 2:$ 4:$ 9$$-9:$ 22$ 42$ 9$$-9:$ 66 | P a g e !igure #.#4 %ourism and Promotions One of t?e main mar.eting acti8ities of t?e company in8ol8es t?e P?ilippine %ourism of t?e ,ort?ern part of t?e country C?ic? is )locos, promoting not =ust t?e tourist spots and t?e beautiful beac?es in )locos but also t?e gi8ing t?e company3s name ?ig?-Fuality in cooperating Cit? t?e 0o8ernments P?ilippine %ourism program. %?is is a sign of an opportunity not =ust ?a8ing good-customer relations?ip but also good relations?ip Cit? t?e go8ernment by cooperating in suc? programs li.e t?e ;O; P?ilippines t?at is ?andled by t?e -ept. of %ourism. ;it? t?is cooperation Cit? tourism !ariAas %ransit Cill be able to gain more customers and promote more tourism in t?e country. 67 | P a g e -iscounts %?e company gi8es discounts to customersU t?is mar.eting acti8ity occurs on seasons li.e summer 8acations, C?ristmas, /oly Cee., and All Souls and Saints -ay. !ariAas %ransit. 0i8es "$G discount to eac? passenger t?at Could a8ail t?e ser8ice of t?e company. %?ey also gi8e "$G discounts to t?e corporate companies t?at rent t?eir buses for 8acation, seminars, and retreats. %?is is a sign of strengt? because it brings a good company-customer relations?ip to increase customer loyalty leading to more sales and satisBed6?appy customers. 6.).+%ro$#tion0Op(rations A#$it !ariAas %ransit Cas t?e Brst to introduce air-conditioned buses in t?e pro8ince, t?e Brst to introduce comfort room in t?e air-conditioned buses and noC t?e !ariAas %ransportation business is t?e biggest transportation business in )locos ,orte.K "" %?e long e7istence in t?e industry is one of t?e factors C?y customers trust t?e !ariAas %ransit. )t started #@4#, for 45 years t?e company ?as establis?ed its name in t?e public transportation industry. )t is one of t?e pioneers for bus companies t?at tra8el to t?e nort?ernmost pro8inces of 1u>on. )t is also one of t?e most Cell-.noCn bus companies t?at go to 1aoag. %?is is a 22 ?ttp:66en.Ci.ipedia.org6Ci.i6!ariGC5GB#asV%ransitVCompany 68 | P a g e strengt? of !ariAas %ransit because ?a8ing a good reputation and image attracts customers and retain loyal customers. According to Ms. Soniata, t?e company is still manual based system t?erefore t?e procedures are time consuming and if t?e manual record boo. is lost data Cill be completely lost. %?e terminal is strategically located in Sampaloc, Manila near to ?is competitors !ranco !rederico 1ines, Maria de 1eon %ransit, 0* !lorida %ransport, Autobus %ransport Systems )nc., and *iron %ransportation Company )nc. According to Ms. Soniata, Cit? t?eir supplier Ming 1ong t?ey are updated Cit? t?e neCest en?ancements and neCest bus oLered in t?e mar.et today. %?e company does not ?a8e researc? and de8elopment and Computer )nformation Systems. Passenger eser8ation %?e company oLers " .inds of manual reser8ations system, one is t?e reser8ation t?roug? t?e p?one and t?e ot?er one is t?e Cal.-in reser8ation. !igure #.#9 69 | P a g e P?one eser8ation On reser8ation t?roug? p?one t?e customer pic.s up t?e p?one and dials any of t?e a8ailable lines of !ariAas %ransit. \ %?en t?e employee recei8es t?e call and guides t?e customer for C?at ?e6 s?e Cants. \ ;?en t?e customer describes t?e type of accommodation t?at ?e needs, t?e employee Cill record it and as. for basic information t?at is necessary. \ %?e employee Cill c?ec. t?e time and date of tra8el is sc?eduled and 8eriBes t?e a8ailability of t?e slot, and t?e employee Cill conBrm to t?e customer C?at ?e6s?e is getting. \ %?en t?e secretary Cill encode t?e reser8ation in t?e record boo.. %?e employee can e7plain additional reser8ation c?arges during pea. seasons if t?e customer is interested. 70 | P a g e ;?ile on t?e Cal.-in reser8ation \ %?e customer goes to !ariAas %ransit terminal and enters t?e reser8ations oIce t?en as.s t?e employee if t?ere are any 8acancies on ?is6?er desired time and day. \ %?en t?e employee is going to as. for customer3s basic information and records it. \ %?e employee Cill t?en c?ec. t?e records manually and loo.s for 8acancies in t?e customer3s desired time and day, and t?en double c?ec.s6conBrm Cit? %?e customer if ?e6s?e Could Cant to be reser8ed t?ere. )f t?e customer agrees, t?e employee Cill manually encode t?e information t?at Cas gat?ered in t?e logboo.. \ %?e employee c?arges t?e customer for t?e reser8ation fee and as.s ?im6?er to pay for it at t?e cas?ier. After t?e customer pays t?e cas?ier and recei8es ?is6?er receipt and c?ange Dif necessaryE t?e customer can noC lea8e and t?e employee6cas?ier records t?e transaction manually. Alt?oug? it some?oC gets t?e transaction done, t?e processes still ?a8e some rooms for impro8ement. Some information documents can be lost due to lac. of automated customer information system. %?is .ind of reser8ation system s?oCs t?e sign of Cea.ness because t?e transactions are done manually and it lac.s eIciency on t?e operations department. 71 | P a g e !igure #.#@ ;al.-)n eser8ation )n Cal. in reser8ation t?e customer simply 8isits t?e terminal reser8e a seat according to ?is time and date preference, and t?e secretary Cill c?ec. for t?e a8ailability of t?e seat. )f it is a8ailable t?e customer s?all pay for it, if not t?e secretary as.s t?e customer again to c?oose a diLerent seat or s?oCs t?e customer t?e remaining a8ailable seats. !igure #."$ 72 | P a g e !reig?t %ransportation %?e company also ?as a freig?t ser8ice and it is done manually li.e t?e reser8ations of t?e passengers, t?e pac.ages 8aries in si>es and form. Customers lea8e t?eir pac.ages to t?e freig?t area and t?ey Cill pay it to t?e cas?ier. %?e cas?ier Cill issue a receipt to t?e customer and t?e pac.age Cill be endorsed to t?e conductor and send t?e pac.age from Manila to )locos or 8ice 8ersa. (pon arri8al of t?e pac.age in t?e destination t?e customer Cill t?en pic. up t?e pac.age at t?e terminal. %?e pac.ages t?at t?ey send are Cartons, Sac.s, Bo7es or simple letters. %?e source of t?is Cea.ness comes from lac. of tec?nology li.e in t?e reser8ation of passengersU information of t?e freig?t or e8en t?e freig?t pac.age itself can be lost due to t?is manual information system. 73 | P a g e !reig?t Prices: !ariAas %rans -eli8ery Ser8ice %able #.#5 5G Additional based on t?e declared 8alue .AOA- MANI.A .ETTER ": ": ENVE.O%E :$ :$ %ACAA-E 2$ 2$ CARTOON3 SMA.. 4$ 4$ MEDIUM 9$ 9$ SACA3 RICE0CAVAN #:$ #:$ I SACA RICE #$$ #$$ BA.IABAYAN BOXES #:$ #:$ DRUM0%AI. #$$-#:$ #$$-#:$ BI- STYRO0COO.ER "$$ "$$ -&P&,-S (PO, %/& S)O& Z ;&)0/% !igure #."# Sc?eduled %rips and outes of Buses %?roug?out t?e years !ariAas %ransit ?as de8eloped a speciBc target mar.et. %?ese are passengers tra8elling on a nort? bound route 74 | P a g e to cities li.e %arlac, Pangasinan, 1a union, Pagudpod, )locos and ot?er pro8inces in nort?ern 1u>on. )n t?eir daily operations, t?e company ?as establis?ed a sc?edule for t?eir daily trips. %?e Brst trip Could lea8e as early as $4:$$ ?ours and t?e last trip Could lea8e at "5:$$ ?ours. On a daily basis special trips called Je7pressK could be a8ailed by passengers. %?ese trips Could pass t?roug? t?e Subic-Clar.-%arlac e7pressCay and Could ?a8e limited stopo8ers. %?ese trips could be a8ailed during t?e nig?t time speciBcally from "$:$$-"":$$ ?ours. !igure #."" epair and Maintenance of Buses %?is acti8ity is done mainly for t?e safety of t?e customers and t?e passengers. %?e mec?anics are t?e ones C?o repair t?e bus if a problem occurs. -ue to long time-tra8el, before t?e bus lea8es t?e 75 | P a g e terminal, t?e mec?anics c?ec.s and inspects t?e buses brea.s, air-con, lig?ts, engine, tires, oil, gas, and Cater. So t?at t?ey Could easily .noC t?e problem and t?ey can easily Cor. on it. %?ey also double c?ec. it C?en t?ey do a ma=or stop T o8er at ic.3s Caf] in Pangasinan, Sison. %?e maintenance of t?e bus is also c?ec.ed during Cee.ends so t?at t?e bus Cill ?a8e a good condition e8ery time t?ey use it for tra8el. %?e dri8er tries to identify t?e problem and reports it to t?e mec?anic for t?e in8estigation. Once t?e in8estigation Cas done t?e mec?anic reports it to t?e operations manager, C?en gi8en t?e go signal and t?e parts needed t?e mec?anic t?en B7es t?e bus t?en t?e dri8er Could ?a8e to get t?e bus from t?e garage. As stated in t?e inter8ieC by Ms. Soniata, !ariAas %ransit can be regarded for ?a8ing a 8ery ?ig? safety rating as compared to ot?er bus companies. )n t?e companies many years of being in t?is industry, it ?as only encountered " ma=or accidents and 8ery feC minor accidents. outine c?ec.-ups are implemented by t?eir maintenance creC as often as possible. And due to ?ig? political inQuence, t?e security of t?e !ariAas %ransit is abo8e a8erage. %?is is a strengt? because t?e customers3 main concern C?en tra8eling is safety. 6.).2 Finan( 76 | P a g e %?e Bnance department manages all Bnancial acti8ities and turns it o8er to t?e Bnance manager for appro8al. %able #.#4 A%)OS %+P& "$$9 "$$@ "$#$ "$## "$#" 1iFuidity Current atio #59.@: #:$.#" 95.@" 9".4: :4.92 1e8erage -ebt to total assets ratio $.$$"$ $.$$"4 .$$:" .$$4@ $.$2 Acti8ity !i7ed assets turno8er ratio $.4# $.44 $.25 .44 $.:@ %otal Assets %urno8er $."@ $.5$ $.5: $.44 $.4: ProBtability 0ross proBt margin D$.$#E $.#2 $.#5 #5.$@ "5.4$ Operating ProBt Margin $.$4 $.$4 $.$# D$.5:E $.$" ,et proBt margin $.$5 $.$5 $.$# D$.5:E D$.$#E eturn on )n8estment DO)E $.$# $.$# $.$$" D$.#:E $.$# OA $.$4 $.$4 $.$# $.54 $.$" 0roCt? Sales D"#E 5.4 #4 #$ 4.5 ,et )ncome D$.::E $."4 D$.44E D:2.:" E D#.$4E S#mmary o: Ma@or Str(n"t8s an$ ?(a!n(ss(s %able #.#: Str(n"t8s ?(a!n(ss(s Compounded annual groCt? rate is 4.4"G from "$$9 to "$#" ,o Mar.eting Manager Competiti8e fare Manual ecord System 77 | P a g e AcFuired 4 neC buses Cit? comfort rooms and ;i-!i 1ac. of Mar.eting esearc? and Strategy -ecreased operating e7pense by :.49G from "$## to "$#" ,egati8e compounded percentage groCt? in proBts from "$#$ to "$#" Int(rna' Fator E*a'#ation Matri1
%able #.#2 A(y Int(rna' Fators ?(i" 8t Ratin " ?(i"8t ($ Sor( Str(n"t8s Compounded annual groCt? rate is 4.4"G from "$$9 to "$#" .#$ 4 $.4 1oC case of bus accident .$4 5 .#" Competiti8e fare .$@ 4 .52 AcFuired 4 neC buses Cit? comfort rooms and ;i-!i .$@ 4 .52 -ecreased operating e7pense by :.49G from "$## to "$#" .#$ 4 $.4 0ood Company )mage and eputation .$4 5 .#" 1oC employee turno8er .$4 5 .#" ?(a!n(ss(s ,o Company ;ebsite .$4 " .$9 ,o online boo.ing .$4 " .$9 Poor %erminal 1ayout and ;or. place at Manila oIce .$4 " .$9 ,o Mar.eting Manager .$@ # .$@ Manual ecord System .#$ # .#$ 1ac. of Mar.eting esearc? and Strategy .$@ # .$@ ,egati8e compounded percentage groCt? in proBts from "$#$ up to "$#" .#$ # .#$ Tota' 1.4 ).6 Str(n"t8s Compo#n$($ ann#a' "ro9t8 rat( o: Farias is =.2)J :rom )44; to )41) are ma=or strengt? of !ariAas. %?ere is a positi8e groCt? rate in t?e company. 78 | P a g e Ratin"B + .o9 n#m>(r o: >#s ai$(nt are minor strengt? of !ariAas. ;it? good maintenance and repairs of buses and ?ig?ly s.illed bus dri8ers, !ariAas %ransit ?as t?e least accident reports in public transportation and because of t?at !ariAas is one of t?e most trusted pro8incial transportation business ?ere in t?e P?ilippines. Ratin"B 2 As of <anuary "$#4, !ariAas %ransit ?as one of t?e loCest bus fare as compared to its competitors. Comp(titi*( :ar( is a ma=or strengt? of !ariAas because aLordable price attracts customers. Ratin"B 2 ecently, !ariAas %ransit aH#ir($ :o#r n(9 >#s(s 9it8 om:ort rooms an$ ?i3Fi. %?is is a ma=or strengt? of !ariAas because customer noC a days prefer buses Cit? ;i-!i. !ariAas Cill certainly attract and satisfy customers because of buses Cit? comfort rooms and ;i-!i. Ratin"B 2 -ecreased operating e7pense by :.49G from "$## to "$#" is a ma=or strengt? of !ariAas. %?e decrease in operating e7pense some?oC related to company3s eIciency. Ratin"B + -oo$ ompany ima"( an$ r(p#tation is a minor strengt? of !ariAas %ransit. %?e long e7istence in t?e industry is one of t?e factors 79 | P a g e C?y customers trust t?e !ariAas %ransit. )t started #@4#, for 45 years t?e company ?as establis?ed its name in t?e public transportation industry. Ratin"B + .o9 (mp'oy(( t#rno*(r is a minor strengt? of !ariAas %ransit. /a8ing a loC employee turno8er means !ariAas employees are ?appy and loyal to t?e company. 1oC turno8er ma.es it easier for t?e company to focus on its business at ?and t?an ?iring and adapting to neC staL. ?(a!n(ss(s Ratin"B ) Not 8a*in" a ompany 9(>sit( and on'in( >oo!in" syst(m is a minor Cea.ness because competitors li.e Partas Bus 1ine, *ictory 1iner, and !i8e Star Bus ?a8e already a Cebsite and *ictory 1iner ?a8e already an online boo.ing system, t?erefore competitors ?a8e a ?uge ad8antage o8er !ariAas %ransit in terms of reac?ing customers, online ad8ertising, and oLering best ser8ices. Ratin"B ) T8( poor t(rmina' 'ayo#t an$ 9or! p'a( at Mani'a oK( is minor Cea.ness of !ariAas. Besides t?e oIce is not air-conditioned, t?e oIce appearance are unclean and unorgani>ed. %?e oIce furniture are not comfortable and t?e bad lig?ting system can cause 80 | P a g e eye strains and fatigue to employees. %?is .ind of Cor. en8ironment aLects t?e employees3 producti8ity. Ratin"B ) According to Ms. Soniata, until today !ariAas %ransit is still operating on a man#a' >as($ syst(m. %?eir business operations are still being c?ec.ed and recorded manually. %?is is a ma=or Cea.ness because operating manually is time consuming and if t?e manual record boo. is lost data Cill be completely lost. Ratin"B 1 Not 8a*in" a mar!(tin" oK(r is a ma=or Cea.ness of !ariAas %ransit. )t is necessary to ?a8e mar.eting oIcer especially !ariAas %ransit ?as a ?ig? ri8alry of competitors. !ariAas Cit?out mar.eting oIcer Cill encounter poor targeting and less responsi8e to customer needs and Cants. Ratin"B 1 T8( 'a! o: mar!(tin" r(s(ar8 an$ strat("y is a ma=or Cea.ness because t?e company Cill lose t?eir loyal customers if t?ey failed to identify and satisfy or e7ceed customer needs and Cants. Ratin"B 1 81 | P a g e T8( n("ati*( p(r(nta"( "ro9t8 in pro&ts in#rr($ :rom )414 to )41) is ma=or Cea.ness. %?is reQects t?at t?e company did not made a proBt for 5 years. %?e .ey strategic management issues identiBed are t?e negati8e compounded percentage groCt? in proBts for t?e past 5 years because of ?ig? operating e7pense and t?e lac. of mar.eting researc? and strategy of t?e Brm because of not ?a8ing a mar.eting oIcer. 82 | P a g e VI. STRATE-Y FORMU.ATION 7.1 S?OT Matri1 83 | P a g e 7.) IE Matri1 !igure #."4
%O%A1 )!& A%),0 ___2.5___ %O%A1
Stron g A8era ge ;ea. &!& 5.$ to 4.$ ".$ to ".@@ #.$ to #.@@ A%),0 /ig? ) )) ))) ___2.87 __ 5.$ to 4.$
Mediu m )* * *) ".$ to ".@@
1oC *)) *))) )' #.$ to #.@@ !ariAas %ransit is in t?e Fuadrant B8e C?ic? means ?old and maintain. %?e strategies for t?is Fuadrant are mar.et penetration and product de8elopment. 84 | P a g e 7.+ -ran$ Matri1 !igure #.": AP)- MAM&% 0O;%/ Huadrant )) Huadrant ) #. Mar.et de8elopment #. Mar.et de8elopment ". Mar.et penetration ". Mar.et penetration 5. Product de8elopment 5. Product de8elopment 4. /ori>ontal integration 4. !orCard integration :. -i8estiture :. Bac.Card integration 2. 1iFuidation 2. /ori>ontal integration
4. Concentric di8ersiBcation
;&AM COMP&%)%)*& POS)%)O,
S%O,0 COMP&%)%)*& POS)%)O,
Huadrant ))) Huadrant )* #. etrenc?ment #. Concentric di8ersiBcation ". Concentric di8ersiBcation ". /ori>ontal di8ersiBcation 5. /ori>ontal di8ersiBcation 5. Conglomerate di8ersiBcation 4. Conglomerate di8ersiBcation 4. <oint 8entures :. -i8estiture 2. 1iFuidation 85 | P a g e
S1O; MAM&% 0O;%/ !ariAas %ransit is in Fuadrant tCo C?ic? means t?e industry groCt? is ?ig? and t?e competiti8e position is Cea.. %?e basis of ?ig? industry groCt? is t?e computed CA0 C?ic? is 2.4#G. %?e basis of Cea. competiti8e position is t?e negati8e compounded percentage groCt? in proBts. 7.2 Spa( Matri1 !igure #."2 86 | P a g e !ariAas %ransit is in t?e conser8ati8e side Fuadrant. %?e strategies in t?is Fuadrant are mar.et penetration, mar.et de8elopment, product de8elopment and related di8ersiBcation. 7.6 BC- Matri1 !igure #."2 ,ame Brand Mar.e t S?are 1eade r Mar.e t S?are elati8 e Mar.e t S?are Brand Sales *alue Brand ProBt Margi n Mar.e t 0roCt ? ate !arinas %ransit $.92 G 4@.4: G $ .$" :$,244,$ @$ "5.4$ G 2G 87 | P a g e Since t?ere is no a8ailable data of brea.doCn of re8enues in freig?t and transportation, t?e BC0 matri7 made is based on t?e C?ole organi>ation. !arinas %ransit is on t?e Fuestion mar. side C?ic? means industry groCt? is ?ig? and t?e Bnancial position of t?e Brm is Cea.. %?e strategies for Fuestion mar.s are mar.et penetration, mar.et de8elopment, product de8elopment, and di8estiture. S#mmary o: Strat("i(s %able #.#4 SUMMARY OF STRATEGIES
IE Grand Space BCG SWOT Total 1. Market penetration X X X X X !. Market de"elop#ent X X X X $ %. &rod'ct de"elop#ent X X X X X $. Related di"er(i)ication X 1 . Unrelated di"er(i)ication * +. ,ori-ontal inte.ration X 1 /. For0ard inter.ration * 1. Back0ard inte.ration * 2. 3i"e(tit're X X ! 1*. Retrenc4#ent * 11. 5i6'idation X 1 %?e strategy t?at got t?e ?ig?est scores are mar.et penetration and product de8elopment. %?e second ?ig?est score is mar.et de8elopment. Mar.et penetration and product de8elopment ?a8e a total score of : and for mar.et de8elopment a total score of 4. 88 | P a g e LUANTITATIVE STRATE-IC %.ANNIN- MATRIX DLS%ME %?e assign an attracti8eness score DASE for eac? strategy related to eac? S;O% 8ariable. !or AS score, use #Xnot acceptable, "Xpossibly acceptable, 5Xprobably acceptable, 4Xmost acceptable. !igure #."4 89 | P a g e VII. OBMECTIVESN STRATE-Y RECOMMENDATIONS AND ACTION %.ANS =.1 Strat("i an$ Finania' O>@(ti*(s 90 | P a g e %?e strategic ob=ecti8es of !ariAas %ransit are Brst to increase sales by at least :G annually for t?e ne7t 5 years by maintaining its mar.et presence and t?roug? aggressi8e mar.eting penetration and mar.et de8elopment =.) R(omm(n$($ B#sin(ss Strat("i(s Mar!(t %(n(tration #. Strategy: ;2Z%" /ire a mar.eting oIcer and oLer reCard system for customers Person in c?arge: / manager for ?iring mar.eting oIcerU Mar.eting oIcer for planning, organi>ing, directing, and controlling of reCard system. Purpose: %o attract customers and maintain loyal customers -etailed Plan: !or e8ery customer t?at Cill ride t?e bus t?ere Cill be a reCard points li.e mabu?ay miles or sm ad8antage card. )t can be done t?roug? stic.ers li.e starbuc.s so it Con3t be costly. After t?e customer reac?ed t?e certain number of reCard points ?e6s?e Cill be gi8en a free bus ride. ". Strategy: S4Z%" &7ecute intensi8e promotion for t?e acFuired four neC buses in social netCor.ing sites li.e tCitter, faceboo., and instragram. Person in c?arge: Mar.eting oIcer 91 | P a g e Purpose: %o promote neC buses and to reac? more customers t?roug? social netCor.ing -etailed Plan: Create a contest in social netCor.ing sites. %?e contest Cill be t?e mar.eting manager Cill s?are a poster featuring neC buses Cit? t?e cost of bus fair, destinations, and routes and t?en t?e people Cill ?a8e to s?are to get a c?ance to Cin a free bus ride manila to )locos or 8ice-8ersa. %?en after # and ?alf mont?s randomly a customer Cill be pic. as t?e Cinner. 5. Strategy: ;#ZO" )n8est at least 5 computers. /ire an ).%. e7pert and ma.e a Cebsite. (se t?e %P1&' as neC route and promote it on Cebsite Person in c?arge: Accounting, / manager, Mar.eting oIcer Purpose: to ma.e t?e recording system automated, utili>e t?e poCer of internet, and to capture more mar.et -etailed Plan: )n8est at least 5 computers to ma.e t?e system automated. /ire an ).%. e7pert to ma.e a company Cebsite. (tili>e t?e route of %P1&'. )n mar.et penetration, t?e best strategy is Strategy: S4Z%" &7ecute intensi8e promotion for t?e acFuired four neC buses in social netCor.ing sites li.e tCitter, faceboo., and instragram because t?ere is no ?ig? cost in e7ecuting t?is strategy and researc?ers at Aalto (ni8ersity, t?e (ni8ersity at BuLalo, and %e7as AZM (ni8ersity ?a8e pro8en a lin. betCeen customersR use of social media and ?ig?er 92 | P a g e re8enue. "5 %?e Corst strategy is Strategy: ;#ZO" )n8est at least 5 computers, ?ire an ).%. e7pert, ma.e a Cebsite, use t?e %P1&' as neC route and promote it on Cebsite because it3s costly and promoting on Cebsite is not eLecti8e as muc? as social netCor.ing sites. Most people Cill c?ec. t?eir faceboo., tCitter, and instagram account rat?er t?an t?eir Cebsite. Mar!(t D(*('opm(nt #. Strategy: S4ZO# apply franc?ise license to 1%!B for Sout? 1u>on pro8inces Person in c?arge: Admin, accounts and Bnance manager Purpose: %o ma7imi>e t?e opportunity of construction of e7pressCay connecting Sout? 1u>on e7pressCay and ,ort? 1u>on e7pressCay and to de8elop neC mar.et. -etailed Plan: Prepare all t?e documents necessary for t?e application of franc?ise. ". Strategy: S4ZO" establis? neC route Manila to Baguio Person in c?arge: Admin, accounts, Bnance, and operations manager Purpose: %o ma7imi>e t?e opportunity of Alternati8e route of %arlac to 1a (nion e7pressCay and to de8elop neC mar.et. -etailed Plan: Prepare all t?e documents necessary for t?e establis?ment of Manila to Baguio route. After t?e document, prepare t?e terminal in Baguio and start operation. 23 ?ttp:66p?ys.org6neCs6"$#5-$5-businesses-re8enue-social-media.?tml^=Cp 93 | P a g e )n mar.et de8elopment, t?e best strategy is Strategy: S4ZO" establis? neC route Manila to Baguio because Baguio is one of t?e most famous tourist destinations ?ere in t?e P?ilippines. %?e Corst strategy is Strategy: S4ZO# apply franc?ise license to 1%!B for Sout? 1u>on pro8inces because not only it Cill ta.e time to build t?e name of !ariAas %ransit in Sout? 1u>on pro8inces but it Cill also ta.e time to study t?e routes and build terminals t?ere. Ot?er Strategies #. Strategy: ;"ZO4 )n8est at least 5 computers. /ire an ).%. e7pert to ma.e online boo.ing and de8elop transport app Person in c?arge: Accounting, / manager, Mar.eting oIcer, ).%. e7pert Purpose: to ma.e t?e recording system automated, utili>e t?e poCer of internet, and to capture more mar.et -etailed Plan: %?e ).%. e7pert Cill design and integrate t?e online boo.ing and transport app ". Strategy: ;4Z%5 Sell old buses Person in c?arge: Admin manager Purpose: %o decrease cost and to return t?e in8estment in old buses -etailed Plan: All bus units t?at are not on ser8ices and are old Cill be sell. =.+ R(omm(n$($ Or"aniCationa' Strat("i(s 94 | P a g e %?e recommended organi>ational structure adding t?e functions of mar.eting oIcer and ).%. e7pert. ).%. &'P&% T An ).%. e7pert is t?e one in c?arge of managing all related to information system of t?e Brm. MAM&%),0 O!!)C& - A mar.eting oIcer is t?e one in c?arge of managing t?e mar.eting resources of a product or business and all acti8ities in8ol8ing sales promotion, discounts, ad8ertising, and ot?er mar.eting strategies. "4 =.2 Finania' %ro@(tions an$ O*(ra'' E*a'#ation o: t8( Strat("i(s 24 http://www.businessdictionary.com/definition/marketing-manager.html#ixzz2tv2N!a" 95 | P a g e Since t?ere is no a8ailable data of income statement for "$#5 as a basis for "$#4 to "$#2 pro=ections, t?e researc?er assumed and used t?e 8alue of "$#" for "$#5. Farias Transportation In. TINB 44731G=3)G63444 M.V. Farias St.N Br"y. ;N .aoa" City STATEMENT OF INCOME Din %(sosE
Farias Transportation In. TINB 44731G=3)G63444 M.V. Farias St.N Br"y. ;N .aoa" City STATEMENT OF INCOME Din %(sosE
Y(ars En$($ D((m>(r +1
)41) )41+ )412 )416 )417 CAS,F.O?S FROM O%ERATIN- ACTIVITIES 97 | P a g e )ncome after income ta7 249,9:4.44 294492.$:2 " 4"@$:5."# @2 44"4@2.4# "4 9#@#24." Ad=usment for: -epreciation :,:4@,#45.$ $ :@#5@"5.59 2"294:9.4 95 2244994.5 # 4$45:44. 4 Operating income before Cor.ing capital c?anges 2,""9,$"4.4 4 22$#4$@.45 2 2@@49#".$ $" 44#429$.4 "5 492"44#. 2 -ecrease DincreaseE in current liabilities: Ot?er current assets :2:,#24.99 :@@$44.@:" 9 25:$"".25 245#"5.@9 49 4#5:##.4 5 )ncrease D-ecreaseE in current liabilities: Ot?er payables 4,2$$.$$ 4942 :#29.:2 :449.2452 :9$4.5@4 Ot?er current liabilities -9$ -94.9 -9@.999 -@:."9#"9 - #$$.@@9# 2 %a7es Payable -"@,4##.$: -5#4@5.4#5 - 55595.55: 49 - 5:592.55: @5 - 54:$@.:# 2 ,et cas? pro8ided DusedE by operating acti8ities 2,429,$$4.2 $ 4#44$94.94 2 42$4:"@.@ 2@ 9$2$9$#.4 24 9:4444@. @ CAS, F.O?S FROM INVESTIN- ACTIVITIES AcFuisition of property and eFuipment - "4,"$$,$$$. $$ -"995"$$$ -5$:2#@"$ - 5"5@:25:. " - 5455@545 ,et cas? pro8ided DusedE by in8esting acti8ities - "4,$$$,$$$. $$ -"92"$$$$ -5$554"$$ -5"#:445" - 54$92949 CAS, F.O?S FROM FINANCIN- ACTIVITIES )ncrease D-ecreaseE in Ban. 1oans Payable 2,222,222.2 4 4$22222.25 9 44@$222.2 54 4@4$#$2.2 5: 94#2:#5 ,et cas? pro8ided DusedE by Bnancing acti8ities 2,222,222.2 4 4$22222.25 9 44@$222.2 54 4@4$#$2.2 5: 94#2:#5 NET INCREASE DDECREASEE IN CAS, 3 1+N=76N+); .=7 - #4:@#"49.4 @ - #:4224"5. 5@ - #25@44"2. 9 - #45494#$ CAS, AT BE-INNIN- OF YEAR +7N66)N;1G .44 5944:@99.# 4 4#$4$444. 45 45:54@@". "4 42#44$@" CAS, AT END OF YEAR ))N=;=N2G4 .)2 "4#:445@.2 : ":2$4$"4. $5 "4#4$"2:. 49 "942929#
98 | P a g e )n pro=ecting t?e company Bnancials, t?e researc?er considered ?er proposed strategies e7pected costs and incomes. Based on t?e pro=ections made by t?e researc?er, t?e return on in8estment of t?e company in "$#:, for c?osen strategies Cill be #"G ?ig?er of t?e total net income of t?e company in t?e year "$#5. Ma.ing t?is strategy eLecti8e and beneBcial to !ariAas %ransportation )nc. 99 | P a g e =.6 D(partm(nta' Strat("i(s an$ F#ntiona' Strat("i(s =.6.1 Strat("y Map 100 | P a g e .(arnin" an$ -ro9t8 %(rsp(ti*( Int(rna' %(rsp(ti*( C#stom(r %(rsp(ti*( Finania' %(rsp(ti*( &mployee training &mployee reCards Moti8ated employees 1ess Operating &7pense )mpro8ed Mission-*ision Statements )mpro8ed ser8ices6rout es )mpro8ed operations )ncreased mar.et s?are )ncreased customer loyalty ;ider customer base )ncreased re8enue )ncreased s?are?older 8alue and business groCt? =.6.) D(partm(nta' Matri1 Strategy: S4Z%" &7ecute intensi8e promotion for t?e acFuired four neC buses in social netCor.ing sites li.e tCitter, faceboo., and instragram. Ation O#tp#t Tim(ta>'( Unit 0%(rson R(sponsi>'( From To -ro#p %(rson Create )nstagram Account. !ree Promotio nal Material Marc? 5 Marc? 5 After "$ minute s Mar.etin g Mar.etin g oIcer Posting of neC and current pictures of t?e company buses and terminal. (pdated faceboo . page, instagra m and tCitter account. &8ery time t?e compan y ?as neC buses or e8ents After t?e e8ent picture s Cill be posted and status Cill be update d Mar.etin g Mar.etin g oIcer AnsCering t?e Fuestions of t?e customers on tCitter, !aceboo., and instagram AnsCere d Fuery &8ery time t?e in- c?arged personn el Cill go online and t?ere is a notiBcat ion Once t?e Fueries and notiBca tions are ansCer ed and recogni >ed. Mar.etin g Mar.etin g oIcer eply on t?ose tags made by customers from riding t?e buses D^!ariAas%ransitE in-c?arge personnel Cill Consum ers Cill feel importa nt and satisBed &8ery time t?e in- c?arged personn el Cill go Once done comme nting and li.ing t?e Mar.etin g Mar.etin g Personn el 101 | P a g e li.e t?e picture tagged and Cill also lea8e an appreciati8e comment online and t?ere is a notiBcat ion tags. Post t?e neC buses pictures in t?e !aceboo. page of t?e Brm Cit? corresponding bus fare and sc?edule. A detailed bac.gro und about t?e buses and its correspo nding bus fare and sc?edule Once neC buses are introduc ed it Cill posted immedi ately Once done uploadi ng t?e product picture s Mar.etin g Mar.etin g Personn el )nclude t?e lin. of t?e company3s Cebsites lin. and promote online boo.ing Promote online boo.ing Marc? 5# Marc? 5# after #$ minute s of editing t?e proBle Mar.etin g Mar.etin g Personn el Strategy: S4ZO" establis? neC route Manila to Baguio Ation O#tp#t Tim(ta>'( Unit 0%(rson R(sponsi>'( From To -ro#p %(rso n Prepare documents necessary Automated record system Marc? 5 Marc? : !inance6 Accounti ng, Operatio ns !inance 6 Accoun ting, Operati ons Manag er 102 | P a g e /ire an ).%. &7pert ).%. &7pert Marc? 5 Marc? @ /uman esource /.. manag er -esign an online boo.ing system Online boo.ing system Marc? #$ Marc? "5 )nformati on %ec?nolo gy ).%. &7pert -e8elop transport app %ransport app Marc? "4 May "4 )nformati on %ec?nolo gy ).%. &7pert Strategy: ;"ZO4 )n8est at least 5 computers. /ire an ).%. e7pert to ma.e online boo.ing and de8elop transport app Ation O#tp#t Tim(ta>'( Unit 0%(rson R(sponsi>'( From To -ro#p %(rso n Buy 5 computers Automated record system Marc? 5 Marc? : !inance6 Accounti ng, Operatio ns !inance 6 Accoun ting, Operati ons Manag er /ire an ).%. &7pert ).%. &7pert Marc? 5 Marc? @ /uman esource /.. manag er -esign an online boo.ing system Online boo.ing system Marc? #$ Marc? "5 )nformati on %ec?nolo gy ).%. &7pert -e8elop transport app %ransport app Marc? "4 May "4 )nformati on %ec?nolo ).%. &7pert 103 | P a g e gy Strategy: ;4Z%5 Sell old buses Ation O#tp#t Tim(ta>'( Unit 0%(rson R(sponsi>'( From To -ro#p %(rso n Sell old buses or parts of old buses t?at can be sold -ecreased operating e7pense Marc? 5 Marc? #4 !inance6 Accounti ng, Operatio ns !inance 6 Accoun ting, Operati ons Manag er 104 | P a g e VIII. STRATE-Y EVA.UATIONN MONITORIN- AND CONTRO. ;.1 Ba'an($ Sor(ar$ Vision %(rsp(t i*( O>@(ti* (s M(as#r( s Tar"(ts Initiati*(s %o be one of t?e leading bus transpor t compani es in t?e P?ilippin es by "$": !inancial %o increase sales by "$ percent in "$#2 ,et proBt margin groCt? One percent increase in mar.et s?are by "$#2 %?e company may consider online boo.ing. Customer %o deli8er diLerentia ted ser8ice to customers /ig? customer sur8ey rating %Cice mar.et si>e %?e company may oLer a diLerentiated ser8ice to its customers. )nternal Processes %o decrease operating costs ,et proBt margin groCt? 1ess operating costs %?e company may consider loC ser8ice6trans port fare mar. up 0roCt? and learning %o increase employee morale )ncrease employe e producti8 ity )ncrease employe e producti8 ity by B8e percent Pro8ide customer ser8ice training to employees 105 | P a g e eferences eference Material: -a8id, !. . D"$#"E. Strategic Management: Concepts and Cases 13th Edition. Pearson &ducation Sout? Asia Pte. 1td. )nternet Sources: #. ?ttp:66en.Ci.ipedia.org6Ci.i6!ariGC5GB#asV%ransitVCompany ". ?ttp:66CCC.gmanetCor..com6neCs6story65"94:$6economy6busin ess6palace-appro8es-p"2-:-b-s.yCay-connecting-nle7-and-sle7r 5. ?ttp:66CCC.p?ilstar.com6?eadlines6"$#46$#6$26#"4::446manila- clar.-bullet-train-pus?ed 4. ?ttp:66CCC.p?ilstar.com6?eadlines6"$#56#"6#@6#"2@44@6bonds- bus-companies-proposed :. ?ttp:66CCC.mb.com.p?6solon-urges-ltfrb-to-reFuire-buses-to- install-cct8s6 2. ?ttp:66.noema.com6y7ptpab6crude-oil-prices-forecast-long-term- to-"$":-data-and-c?arts 4. ?ttp:66CCC.intera.syon.com6business64942#6Corld-ban.-cuts-p?- groCt?-forecast-for-"$#5-"$#4-on-typ?oon-impact 9. ?ttp:66CCC.p?ilstar.com6business6"$#56$"6$#6@$55:26ac?ie8e- 9.:-groCt?-target-"$#2-p?l-must-mo8e-8alue-added-c?ain @. ?ttp:66CCC.nscb.go8.p?6stats6pesodollar.asp #$. ?ttp:66CCC.abs-cbnneCs.com6nation6#"6#46#56p?-54- deat?s-daily-due-road-cras?es ##. ?ttp:66CCC.mb.com.p?6metro-manila-traIc-costs-p#4$b-a- year6 #". ?ttp:66Cebgee..p?6dotc-p?ilippine-transit-app-c?allenge6 #5. ?ttp:66publictransport.about.com6od6%ransitV%ec?nology6a6%r ansit-Apps.?tm #4. ?ttp:66CCC.masstransitmag.com6article6#$4:5":@6gps- monitoring-.eeps-buses-on-trac.WpageX# #:. ?ttp:66CCC.masstransitmag.com6article6#$4:5":@6gps- monitoring-.eeps-buses-on-trac.WpageX" #2. ?ttp:66arc?i8e.is64uc" #4. ?ttp:66CCC.mb.com.p?6si7-?ybrid-buses-ply-ma.ati-city6 #9. /ttp: 66senate.go8.p?6lisdata6#:@@$#5""4Y.pdf #@. ?ttp:66gotecotec?.com6p?ilippine-senate-appro8e- alternati8e-fuel-8e?icle-act6 "$. /ttp: 66senate.go8.p?6lisdata6#:954#5$4"Y.pdf "#. ?ttp:66CCC.t?elobbyist.bi>6congress-neCs6item6"5$- sustainable-mass-transport-seen-as-solution-to-country G&"G9$G@@s-traIc-Coes 106 | P a g e "". ?ttp:66en.Ci.ipedia.org6Ci.i61istVofVbusVcompaniesVofVt?eV P?ilippines "5. ?ttp:66en.Ci.ipedia.org6Ci.i6!ari GC5GB#asV%ransitVCompany "4. ?ttp:66p?ys.org6neCs6"$#5-$5-businesses-re8enue-social- media.?tml^=Cp Appendi7: 107 | P a g e 108 | P a g e 109 | P a g e 110 | P a g e 111 | P a g e 112 | P a g e 113 | P a g e 114 | P a g e 115 | P a g e 116 | P a g e 117 | P a g e 118 | P a g e 119 | P a g e 120 | P a g e 121 | P a g e 122 | P a g e 123 | P a g e 124 | P a g e 125 | P a g e