Vous êtes sur la page 1sur 126

San Beda College

College of Arts and Sciences


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

Y(ars En$($ D((m>(r +1

)41+ )412
)416 )417


&*&,(& :$,244,$9@.94 :5,29",45:."5
:2,@$5,2@@.5
4
2$,5#4,@"#.5
$
-)&C% COS%S
59,244,424.
52 4$,@25,4:$.""
45,4"#,":4."
5
42,$"2,:5".2
4
0OSS PO!)% ##,@@@,5":.49 #",4#@,"9:.$#
#5,49",44".#
#
#4,"@#,599.2
4
&'P&,S&S ##,$2:,#9".#2 ##,4"@,$@5.$@
#",45",959.2
4
#5,#49,9$@.$
$

,&% PO!)% B&!O& ),COM&
%A' @54,#45.5" @@$,#@#.@" #,$4@,2$5.45 #,##",:4@.24

Farias Transportation
In.
COM%ARATIVE BA.ANCE
S,EET
STATEMENT OF INCOME
Din %(sosE

As o: D((m>(r +1

)41+
)412 )416 )417
ASSETS
Current Assets
96 | P a g e
Cas?
"",494,4@$.
"4
"4,#:4,4
5@.2:
":,2$4,$
"4.$5 "4,#4$,"2:.49
Ot?er Current Assets
2,$:",9$$.$
$
2,4#:,@
29.$$
2,9$$,@
"2.$9 4,"$9,@9#.24
%otal
"9,94$,"@$.
"4
5$,:4$,4
$4.2:
5",4$4,@
:$.## 54,54@,"44.#"
,on-Current Assets
Property and &Fuipment
94,92#,@9#.
$$
9@,@:5,2
@@.92
@:,5:$,@
"#.9: #$#,$4#,@44.#2
%otal
94,92#,@9#.
$$
9@,@:5,2
@@.92
@:,5:$,@
"#.9: #$#,$4#,@44.#2
%O%A1 ASS&%S
11+N=4)N)=
1.)2
#"$,:"4,4
$4.:#
#"4,4::,9
4#.@4 #5:,4"#,""4."9
.IABI.ITIES AND ELUITY
Current 1iabilities
Ot?er Payables 9,2$$.$$
@,#
#2.$$
@,2
2".@2 #$,"4".44
Ot?er Current 1iabilities #52,994.$$
#4:,#
$$.""
#:5,9
$2."5 #25,$54.2#
%a7es Payable 5:",@"#.#:
544,$
@2.4"
5@2,:
4"."$ 4"$,554.44
%otal 2G;N24;.16
:"9,5
#".24
:2$,$
##.4$ :@5,2#".$9
,on-Current 1iabilities
Ban. 1oans Payable
2,222,222.2
4
4,$22,2
22.24
4,4@$,2
22.24 4,@4$,#$2.25
%otal
7N777N777.
72
4,$22,2
22.24
4,4@$,2
22.24 4,@4$,#$2.25
%otal 1iabilities
=N176N4=2.
=G
4,:@4,@
4@."9
9,$:$,2
49.$5 9,:55,4#9.4"

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