554 CHAPTER III

555 RESEARCH METHODOLOGY

556 This chapter presents the methodology used in the study. This contains

557 the research design, sources of data, respondents of the study, research

558 instrument, data gathering procedure and statistical tool used in the study.

559 Research Method

560 In conducting the research, the researchers used the descriptive method

561 wherein questionnaire was distributed in order to gather the data needed in the

562 study. A descriptive method enabled the researchers to find out the status and

563 tools in management being employed by the industry. Therefore, it was deemed

564 to be the most appropriate method to use.

565 A descriptive method is designed to collect data that describes situations,

566 people or events; it could either be quantitative or qualitative in nature. It involves

567 the gathering of data such as ratings, figures and demographic data. It also

568 entails the gathering of qualitative information such as describing a process or

569 examining procedures.

570 A descriptive method was employed when its purpose is to obtain facts

571 about existing condition or detach significant relationship between current

572 phenomena.

573

574
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575 Sources of Data

576 The data used in this study were obtained from primary and secondary

577 sources. The primary source of data were the responses of the owner or

578 manager of Selected Ukay-Ukay Business.

579 Respondents of the Study

580 The respondents of the study were the six (6) owners of Ukay-Ukay

581 Business in Guinobatan, Albay.

582 Research Instrument

583 Questionnaire was used as the principal tool in gathering the data needed.

584 Questionnaire is a form that is intended to obtain conditions or practices on which

585 the respondents are presume to have knowledge. The questionnaires that were

586 used in the study consist of brief statements which are simple to understand.

587 The questionnaire has three parts. The first part was based on the profile

588 of the business; the second part was the Operations Management Practices of

589 Selected Ukay-Ukay Business in terms of Marketing Aspects and Financial

590 Aspects, followed by the impact of these practices on the sustainability of the

591 business and the last part were the action plans crafted in order to ensure

592 continuing sustainability of Ukay-Ukay Businesses.

593 Data Gathering Procedure

594 In conducting the study, the steps that were systematically undertaken are

595 the following:

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596 The researchers prepared a letter of request addressed to ukay-ukay

597 owners that was forwarded to the Dean of School of Business, Management and

598 Accountancy for evaluation and corrections. The researchers then prepared a

599 questionnaire for the respondents and personally approached the ukay-ukay

600 owners. The researchers explained their intentions in conducting the study and

601 ensure that respondents understand the questions. The process of

602 communicating information to the respondents and seeking their consent was to

603 establish mutual understanding between the researchers and respondents. Each

604 ukay-ukay business owners was given the opportunity to ask questions regarding

605 the questionnaire. The instrument was distributed and retrieved personally by the

606 researchers.

607 Statistical Treatment

608 This study used descriptive statistical tool such as weighted mean. The

609 weighted arithmetic mean was employed to measure the extent to which the

610 respondents rate and determine their operation management practices in terms

611 of financing and marketing aspects and its level of sustainability. The data

612 gathered was interpreted using the table provided below;

613 As to Operation Management Practices:

Scale Range Interpretation Description

Always 90%-100% practiced operation
3 2.50-3.00 Practiced management
Sometimes 50%-89% seldom practiced
2 1.50-2.49 Practiced operation management
1%-49% never practiced
1 1.00-1.49 Never Practiced operation management
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614 As to Impact of Operation Management Practices on Sustainability of business

615 along marketing aspect:

Scale Range Interpretation Description

3 2.50-3.00 High Impact 90%-100% proves that the

2 1.50-2.49
1 1.00-1.49
616
practices have high
impact on sustainability
Moderate Impact 50%-89% proves that the
practices have high
impact on sustainability
No Impact 1%-49% proves that the
practices have high
impact on sustainability

617 As to Impact of Operation Management Practices on Sustainability of business

618 along financial aspect:

619 Working Capital

Standard Industry Average Interpretation

Php20,000 and above
High Impact
Below Php20,000
Low Impact
620
621 Current Ratio

Standard Industry Average Interpretation

1.5-2.0 High Impact

Below 1.5 Low Impact

622
623 Quick Ratio

Standard Industry Average Interpretation

Quick Ratio higher than 1 High Impact

Quick Ratio lower than 1 Low Impact

624
625 Debt Ratio

Standard Industry Average Interpretation

49% and below High Impact
50% and above Low Impact

626
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627 Net Profit Margin

Standard Industry Average Interpretation

10% and above High Impact

Below 10% Low Impact

628
629 Return on Investment

Standard Industry Average Interpretation

High Impact

Low Impact
630
631