238976396 Strategic Management Paper Bus Transportation Sample

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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

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%able of Contents

&'&C(%)*& S(MMA+............................................................................."

). )%O(C%)O....................................................................................4Company Bacground..........................................................................4)). &S&AC/ &S)0 A M&%/OO1O0+...........................................2))). COMPA+3S *)S)O A M)SS)O.....................................................

5. # Mission 6 *ision Statement............................................................)*. &7ternal Analysis.............................................................................##

4. # 0eneral &n8ironment..................................................................##4." )ndustry and Competitor Analysis................................................"94.5 Summary and Conclusion............................................................45

*. )nternal Analysis...............................................................................49.# Company Performance................................................................49

." )nternal Audit...............................................................................*). S%A%&0+ !OM(1A%)O................................................................42.# S;O% Matri7................................................................................42." )& Matri7.......................................................................................2.5 0rand Matri7................................................................................22.4 Space Matri7................................................................................2. BC0 Matri7...................................................................................9

*)). OB


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EXECUTIVE SUMMARY

!arias %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 identied are Construction of e7pressay connecting

ort? 1u>on &7pressay D1&'E and Sout? 1u>on &7pressay DS1&'E,

alternati8e route of t?e %arlac to 1a (nion &7pressay D%P1&'E, de8elop

transport app, and integrating 0PS tracing system. %?e ma=or t?reats

identied are proposal construction of bullet train system and proposal

construction of railay t?at ill co8er t?e entire nort? and sout?

netors of t?e P?ilippine ational ailays DPE.

)n strategy formulation S;O%, Space, 0rand, BC0, and )& matri7

are used to identify ?at strategy ill be used to ac?ie8e t?e desired

goals and ob=ecti8es of t?e company. (sing space matri7, !arias

%ransit is identied in t?e conser8ati8e side Fuadrant. %?e strategies in

t?is Fuadrant are maret penetration, maret de8elopment, product

de8elopment and related di8ersication. (sing grand matri7, !arias

%ransit is identied in Fuadrant to ?ic? means t?e industry grot? is

?ig? and t?e competiti8e position is ea. %?e basis of ?ig? industry

grot? is t?e computed CA0 ?ic? is 2.4#G. %?e basis of ea

competiti8e position is t?e negati8e compounded percentage grot? in

prots. (sing BC0 matri7, !arinas %ransit is identied on t?e Fuestion

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mar side ?ic? means industry grot? is ?ig? and t?e nancial

position of t?e rm is ea. %?e strategies for Fuestion mars are

maret penetration, maret de8elopment, product de8elopment, and

di8estiture. (sing )& matri7, !arias %ransit is identied in t?e Fuadrant

8e ?ic? means ?old and maintain. %?e strategies for t?is Fuadrant

are maret penetration and product de8elopment.

%?e result of t?e strategy formulation focuses on t?e maret

penetration ?ic? gat?ered t?e ?ig?est score in t?e HSPM. %?e ey

strategic management issues identied are t?e negati8e compounded

percentage grot? in prots for t?e past 5 years because of ?ig?

operating e7pense and t?e lac of mareting researc? and strategy of

t?e rm because of not ?a8ing mareting oIcer.

%?e strategic ob=ecti8es of !arias %ransit are rst to increase

sales by at least G annually for t?e ne7t 5 years by maintaining its

maret presence and t?roug? aggressi8e maret penetration and

maret de8elopment.

%?e action plan of !arias %ransit are rst to ?ire a mareting

oIcer, ?ire an ).%. e7pert, and acFuire computer for t?e ne7t " mont?s.

%?en e7ecute intensi8e promotion for t?e acFuired four ne buses in

social netoring sites lie titter, faceboo, and instragram and

establis? t?e route of Manila to Baguio.

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I. INTRODUCTION

1.1 Company Ba!"ro#n$

1.1.1Company %ro&'(

!arias %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

!arias %ransit is a public transportation, ?ic? transports

passengers any?ere along t?e Manila to )locos route.

!reig?t is also anot?er t?ing t?at !arias %ransit caters to,

customers lea8e t?eir pacages and sends t?em from Manila to )locos

and 8ice 8ersa. %?e pacages t?at t?ey send include cartons, sacs,

bo7es and simple letters.

1.1.+Company ,istory

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J!arias %ransit, a sole family proprietors?ip as founded by t?e

late Marcelo *alle=os !arias of *igan, )locos Sur toget?er it? ?is ife,

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 *. !arias died and t?e management of t?e

business fell in t?e s?oulders of ?is ife and ?is to gron 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 ?o ne8er ?ad any formal education in automoti8e repairing

or t?e lie, as able to assemble one bus out of t?e " dilapidated

buses into good running condition ?ic? ?e ?imself dro8e along its

franc?ises routes from 1aoag to Manila and bac. %?ese to buses

became t?e nucleus of t?e biggest transportation business plying

beteen 1aoag and Manila today.K

J!ederico as t?e rst to introduce air-conditioned buses in t?e

pro8ince, t?e rst to introduce comfort room in t?e air-conditioned

buses and no t?e !arias %ransportation business is t?e biggest

transportation business in )locos orte and is managed by t?e c?ildren

and grandc?ildren.K

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II. RESEARC, DESI-N AND MET,ODOO-Y

!or t?e e7ternal analysis, current and pro=ections on macro-

economic statistical data and indicators ere obtained from diLerent

go8ernment ebsites and publications. !or t?e internal analysis t?e

researc?er conduct an inter8ie it? t?e assistant manager of !arias

%ransit. %?e researc?er also used t?e nancial statements gat?ered

from Security of &7c?ange Commission DS&CE ebsite to get t?e

nancial ratios of companies and to compute t?e compounded annual

grot? rate DCA0E.

Scope and limitation

Since t?e only present a8ailable data for nancial statements in

S&C are "$#", t?is paper limits t?e data of computed nancial ratios

and industry grot? to year "$#" in internal and e7ternal analysis of

t?e company. Also some companies in S&C ?a8e incomplete nancial

statements and some companies don3t ?a8e records, t?erefore t?e

computed CA0 only composes of industry players t?at nancial

statements are a8ailable in S&C. )n t?e nancial statements of !arias,

t?ere is no a8ailable data of t?e breadon of re8enue on ?o 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 ?ole.

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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 BACBO& 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

it? t?e use of state of t?e art Buses, Amenities and &Fuipments

for t?e con8enience and comfort of t?e customers of !arias

%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 +es6o CommentsCustomer +es Jfor t?e publicKProducts or Ser8ices +es J%o transport our

customers and

freig?tK Jit? t?e

use of state of t?e

art Buses, Amenities

and &FuipmentsKMarets +es Jin t?e Pro8incial

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1and %ransportation

)ndustryK%ec?nology +es Jt?e use of state of

t?e art BusesNConcern for

sur8i8al, grot?,

and protability

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 ill be

benecial not only to

t?e company but to

t?e employees and

customers as ell.KP?ilosop?y +es J%o become t?e

P)11A of public

transportation

business in t?e

P?ilippines.KSelf-concept +es J%o pro8ide globally

competiti8e ser8ice

to customers,

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pro8iding a

competiti8e edge in

t?e Pro8incial 1and

%ransportation

)ndustry it? t?e use

of state of t?e art

Buses, Amenities

and &Fuipments for

t?e con8enience and

comfort of t?e

customers of !arias

%ransit. JConcern for public

image

+es J%o be an A*OCA%&

of e7cellent ser8ice,

socially responsible

of its passengers

and customersKConcern for

employees

o J%o pro8ide globally

competiti8e ser8ice

to customers by

gi8ing employees

ser8ice Fuality

trainingsK

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ecommended Mission Statement

!arinas %ransit, a public transportation company Dser8iceE, is an

internal and e7ternal customer-oriented Dp?ilosop?yE rm ?ic?

transports passengers DcustomersE any?ere along t?e Manila to )locos

route DmaretE. )t utili>es ne 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

pacages 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 benets to its

internal customers Dconcern for employeesE it? t?e end point 8ie of

company3s protability Dconcern for grot?, sur8i8al, and protabilityE.

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 /o t?e Company Cascade its Mission and *ision

Statements

%?e company does not obser8e any ays on ?o tocommunicate its mission-8ision statements to company employees and

customers ?ic? is considered to be un?ealt?y for t?e company.

ecommended ;ays on /o t?e Company may communicate its

Mission-*ision Statements

#. Post Mission-*ision Statements at bus terminals

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". Post Mission-*ision Statements at company oIces

5. Post Mission-*ision Statements at company buses

4. )nclude Mission-*ision Statements at fare ticets

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IV. Et(rna' Ana'ysis

2. 1 -(n(ra' En*ironm(nt

2.1.1 %o'itia' 3 ("a' S("m(nt

Citra Central &7pressay

President Benigno AFuino ))) ga8e t?e green lig?t to Citra Central

&7pressay Corporation to begin constructing t?e P"2.-billion

e7pressay to connect t?e ort? 1u>on &7pressay D1&'E and Sout?

1u>on &7pressay DS1&'E.

Aside from t?is ne e7pressay, t?e O%C is also pursuing t?e

construction of t?e %arlac to 1a (nion &7pressay D%P1&'E and t?e

idening and impro8ement of t?e Batangas e7pressay DS%AE, Abaya

said.#

ele8ance:

Construction ill start in t?e second Fuarter of "$#4 and is

e7pected to be nis?ed in t?ree years. )n "$#2, t?is ill be an

opportunity for !arias %ransit to e7pand t?eir ser8ices in t?e Sout?ern

pro8inces. %?e alternati8e route of %arlac to 1a (nion &7pressay

1?ttp:66.gmanetor.com6nes6story65"94$6economy6business6palace-appro8es-p"2--b-syay-connecting-nle7-and-sle7r

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D%P1&'E is an opportunity because it ill mae t?e transportation faster

from Manila to )locos.

Bullet train system 6 Mot?balled ort? rail pro=ect

Al8arado said t?e C ould eit?er pus? for t?e bullet train

system or re8i8e t?e mot?balled ort?rail pro=ect t?at ould lin Metro

Manila to t?e Clar international airport in Pampanga. /e said t?e

proposed bullet train system ould boost t?e economy of Central

1u>on, particularly in t?e pro8inces of Pampanga, Bulacan, ambales,

Bataan, ue8a &ci=a, %arlac and Aurora.

%?e proposed railay ill co8er t?e entire nort? and sout?

netors of t?e P?ilippine ational ailays DPE. %?e nort? netor

runs from Manila to 1a (nion, including a line from %arlac to San


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%?e proposal construction of railay t?at ill co8er t?e entire

nort? and sout? netors of t?e P?ilippine ational ailays DPE ill

be a t?reat for !arias %ransit because t?is can be an alternati8e ay of

transportation, t?erefore t?ere is a lo sitc?ing cost from bus

transportation to railay transportation.

Speed 1imiters and 0PS tracing de8ices

MA)1A, P?ilippines - Bus companies s?ould post ?efty safety

performance bonds it? t?e 1and %ransportation !ranc?ising and

egulatory Board D1%!BE t?at ould 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 nos t?at t?is ould be forfeited s?ould

t?e bus be in8ol8ed in an accident, ?e ould 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:66.p?ilstar.com6?eadlines6"$#56#"6#@6#"2@@6bonds-bus-companies-proposed

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%?e proposal of bonds and installing speed limiters in public

utility buses nationide ill be a t?reat because of t?e cost t?at ill be

burden by bus companies including !arias %ransit ?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 a said t?e 1%!B s?ould follo ?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 ill be a t?reat for !arias %ransit if soon

implemented. As of ecember "$#", !arias %ransit ?as 29 buses on

ser8ices, t?erefore t?ere ill be a great e7pense for !arias in installing

4?ttp:66.mb.com.p?6solon-urges-ltfrb-to-reFuire-buses-to-install-cct8s6

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CC%*. !ailure to accomplis? t?e mandatory installment of CC%* ill

aLect !arias because t?ey ill ?a8e problems in t?eir business license

and permit t?at ill cause delay in operation and prot loss.

2.1.) Eonomi S("m(nt

;orld Ban: Crude Oil, 6barrelA8g. spot price DBrent, ubai, and ;%)E

%able #.#"$#"

"$#5

"$#4

"$#

"$#2

"$#

"$#9

"$#@

"$"$

"$"

ominal(Sollars

#$.$

#$.$

#$.

#$".$

#$$.

#$$.#

@@.2

@@.#

@9.

@.$

eal

"$$(Sollars

9.

2

@@.

"

@.

@5.

"

@$.

9

9@.

$

9.

5

9.

2

94.

$

2."

Source: ;orld Ban Commodity !orecast Price data, October "$#5

!igure #.#

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)n October "$#5 %?e ;orld Ban released its Commodity

!orecast, ?ic? predicts t?at orld crude oil price ill decrease from

#$6barrel in "$#" to @9.6barrel by "$"$. According to Commodity

Price !orecast from )M!, spot a8erage price for crude oil ill drop to

92.6barrel by "$#9.

ele8ance:

%?e table abo8e s?os t?e forecast for crude oil from "$#" to

"$". %?e forecast for crude oil price ill sloly decrease until "$".

%?is ill be an opportunity for !arias %ransit because lo price of

crude oil means lo price of gasoline and diesel, t?erefore t?e e7pense

of company for gasoline ill be lessen.

0P, )nQation rate, and Peso-ollar &7c?ange rate forecast

!or "$#4, t?e ;orld Ban e7pects grot? of 2. percent, also

loer t?an its earlier forecast of 2. percent. %?e go8ernment is

aiming for a 2.-. percent grot? t?is year.

5?ttp:66noema.com6y7ptpab6crude-oil-prices-forecast-long-term-to-"$"-data-and-c?arts

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)n "$#, 0P grot? is e7pected to pic up to .# percent, ?ig?er

t?an t?e earlier forecast of 2.9 percent, t?e lender said. By "$#2, t?e

P?ilippine economy ill gro 2. percent.2

!or t?e P?ilippines, inQation is seen to settle at 4." percent in

"$#5, 5.9 percent ne7t year before sloing don to 5. percent for

bot? "$# and "$#2.

J;e see continued appreciation of t?e peso. !or t?is year, it ill

liely ?it 5.$ Dagainst t?e dollarE, underpinned by continued inQos

in t?is part of t?e orld,K %an said. Peso-dollar e7c?ange rate is

forecast to reac? 5:# in "$#4, 4$:# in "$# and 4#:# in "$#2.K

At#a'

!igure #."

6 ?ttp:66.interasyon.com6business692#6orld-ban-cuts-p?-grot?-forecast-for-"$#5-"$#4-on-typ?oon-impact7 ?ttp:66.p?ilstar.com6business6"$#56$"6$#6@$5526ac?ie8e-9.-grot?-target-"$#2-p?l-must-mo8e-8alue-added-c?ain

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%able #.")41) )41+

-D% .5 D5HE .$ D5HE

In5ation Rat( 5.$ D5HE 4.# D5HE

For(ast

!igure #.5

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%able #.5)412 )416 )417

-D% 2. .# 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 !arias %ransit. %?e positi8e

rate of 0P from "$#4 to "$#2 and decreasing inQation rate from "$#4

to "$#2 ill liely result to increase prot in all industries.

At#a'

!igure #.4

%able #.4)41) )41+

%(so3 Do''ar

E8an"( Rat(

4":# 4":#

Source: national statistics coordination board9

8?ttp:66.nscb.go8.p?6stats6pesodollar.asp

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!igure #.

%able #.

)412 )416 )417.%(so3Do''ar

E8an"( Rat(

5:# 4$:# 4#:#

ele8ance:

%?e )ncreasing 8alue of dollar against peso is a t?reat for !arinas

%ransit because ?en t?e peso goes don,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 ell. %?erefore aLecting t?e a8erage

!ilipino greatly ?o cannot aLord t?e rise of public fares. )n addition

t?ere ould also be less income for t?e company and t?erefore

restraining t?eir budget.

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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 ?o disobey traIc

rules are to blame for an estimated 54 people ?o die daily in t?e

P?ilippines due to road cras?es, a former 1and %ransportation OIce

c?ief said %uesday.

N)f e loo at t?e statistics, alt?oug? it is spotty, e 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 AC inter8ie.

/e also said ?e ould 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 ?opping P#4$ billion annually, a gure t?at darfs t?e

amounts lost 8ia t?e contro8ersial por barrel scam.

J%?e ndings 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:66.abs-cbnnes.com6nation6#"6#6#56p?-54-deat?s-daily-due-road-cras?es

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Jirect losses are attributed to asted gasoline, lost labor ?ours,

employment of traIc aides, and asted electricityU t?e indirect losses

refer to it?draal of potential foreign in8estments, missed business

opportunities, and reduced capital inQo,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 ?ic?

may contribute to global arming.

2.1.2 T(8no'o"ia' S("m(nt

%ransport App

epartment of %ransport and Communicationin partners?ip it?

t?e Metro Manila e8elopment Aut?ority and Cebu City 0o8ernment,

ill ?ost t?e rst 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 to ne inds

10?ttp:66.mb.com.p?6metro-manila-traIc-costs-p#4$b-a-year6

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http://www.dotc.gov.ph/index.php?option=com_k2&view=item&id=567:dotc-to-make-commuting-in-metro-manila-more-convenient&Itemid=103http://philippine-transit.hackathome.com/http://www.dotc.gov.ph/index.php?option=com_k2&view=item&id=567:dotc-to-make-commuting-in-metro-manila-more-convenient&Itemid=103http://philippine-transit.hackathome.com/


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of open dataU rst is made publicly a8ailable by t?e agencies and

second is concerning location and ser8ice information as ell as traIc

incident streams in Manila and Cebu City. By a 5-mont? de8elopment

period participants ill or it? 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

?en buses ill 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 orplace.K#"

ele8ance:

As to go8ernment trying to de8elop transit app t?at ill pro8ide

real time data for citi>en, t?is could be an opportunity for !arias

%ransit to apply it in its operation. )ntegrating t?is ind of tec?nology

ill surely pro8ide better ser8ice and ill attract customers.

0PS tracing system

11?ttp:66ebgee.p?6dotc-p?ilippine-transit-app-c?allenge612 ?ttp:66publictransport.about.com6od6%ransitV%ec?nology6a6%ransit-Apps.?tm

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;it? today3s increased fuel costs and tig?t budgets at all

go8ernmental le8els, bus companies are under pressure to perform

it? feer resources. 1ucily, tec?nology is maing it easier. One of

t?e most eLecti8e ays for a 8e?icle-based organi>ation to stay up and

running and competiti8e is by implementing 0PS-based tracing,

a8ailable in a 8ariety of softare platforms from numerous 8endors.

Almost e8eryt?ing monitored by 0PS 8e?icle tracing can or to ?elp

bring don fuel e7penditures for an organi>ation. !or e7ample,

speeding is a ?uge factor in ?ig? fuel usage. A 0PS tracing solution

can pro8ide speed information and send alerts ?en a 8e?icle e7ceeds

t?e speed limit.

&7cessi8e idling can also contribute to ?ig? fuel costs. A 0PS

Qeet tracing system can ?elp reduce idling times by alerting t?e user

?ene8er a 8e?icle idles longer t?an a pre-set duration. By using t?e

tools in 0PS Qeet tracing, 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 8eriable

proof of ser8ices, it3s a 8aluable tool for re8ieing routes and

freFuency of stops, ?ic? can ?elp a company streamline operations

and run more eIciently.#5

13 ?ttp:66.masstransitmag.com6article6#$45"@6gps-monitoring-eeps-buses-on-tracWpageX#

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0PS tracing also deli8ers accurate, up-to-date mapping it?

traIc conditions. Some 0PS solutions ?a8e partnered it? trusted

resources suc? as 0oogle Maps, ?ic? pro8ides >oom capabilities all

t?e ay don to street le8el. ispatc?ers can use t?is information to

ad=ust routes if necessary, ?elp dri8ers a8oid delays or mae last-

minute c?anges to ser8ice.

0PS Qeet tracing can also ?elp impro8e security and safety for

dri8ers and passengers alie. &7ample a bus go missing for ?ate8er

reason, 0PS can ?elp a company reco8er it and any on board

eFuipment Fuicly. 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 ill no. And in t?e unliely but not

undocumented e8ent t?at a bus ?as been stolen, t?ere isn3t a faster

ay to trac it don.

#4

ele8ance:

)ntegrating 0PS tracing system ould increase security and

safety, reduce fuel costs, and impro8e customer ser8ice. %?is could be

an opportunity for !arias %ransit to pro8ide better ser8ice and attract

customers.

/ybrid bus

14 ?ttp:66.masstransitmag.com6article6#$45"@6gps-monitoring-eeps-buses-on-tracWpageX"

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/ybrid bus tec?nology is similar to t?at used in ?ybrid cars and

trucs, it? options for bot? parallel and series dri8e train designs.

%?ese buses employ similar tec?nology including regenerati8e braing,

electric motors, and battery storage. One main diLerence is t?at most

?ybrid buses are coupling diesel-fuelled engines it? electric motors

instead of t?e typical gasoline-electric ?ybrid congurations a8ailable

in lig?t duty 8e?icles. Ma7imi>ing t?e benets from t?ese buses

reFuires optimi>ing t?e ?ybrid system for t?e transit bus routes, ?ic?

mig?t be aLected by t?e terrain t?e bus tra8els or ?et?er t?e bus

freFuently tra8els at freeay speeds or stays on city streets.

/ybrid diesel- electric buses are a8ailable, and t?ese can oLer

lo or >ero local air pollutant t?at ould benet 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 lo

?en operated in electric mode. /ybrid buses, using an on-board

battery toget?er it? a diesel engine, oLer emissions benets,

especially ?en operating in urban areas on battery poer, it?

regenerati8e braing. #

ele8ance:

As of


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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 ill tell ?o far manufacturers

can go to impro8e emissions and to de8elop ?ybrid transit buses in

long distance tra8el, ?ile loering t?e o8erall cost of t?e buses ?ic?

ould attract in8estors greatly t?erefore creating an opportunity.

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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#

%?e Senate bill no. #24 ill grant scal and non-scal 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, ind, ?ydrogen fuel cell, compressed natural gas or liFueed

natural gas, met?ane and liFueed petroleum gas. Manufacturers and

assemblers ill be e7empted from paying and duties, as ell as 8alue-

added ta7 for purc?ase and importation of ra materials, spare parts,

components and capital eFuipment used in t?e manufacture or

assembly of A!*s for nine years.#9

ele8ance:

%?is bill ill promote t?e idespread 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""Y.pdf18 ?ttp:66gotecotec?.com6p?ilippine-senate-appro8e-alternati8e-fuel-8e?icle-act6

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en8ironment and reduce t?e eLect of global arming. %?is senate bill

ill some?o reduce t?e problem of manufacturers in terms of cost in

importing and producing ?ybrid 8e?icles. %?is ill only create an

opportunity for !arias %ransit if t?e prices of ?ybrid 8e?icles ill be

aLordable and t?e problem in c?arging station ill 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 ell

as promote an acti8e lifestyle. %?e bill mandates t?e epartment of

%ransportation and Communications DO%CE and t?e ational &conomic

e8elopment Aut?ority D&AE to come up it? a sustainable transport

action plan t?at ould ac?ie8e a Jmode s?ift targetK o8er a period of

time. %?e bill includes t?e pro8ision of adeFuate alays t?at allo

safe pedestrian passage. %?e bill also includes t?e designation of bie

lanes, and establis?ment of bicycle paring spaces and bie racs, to

promote bicycle use.19?ttp:66senate.go8.p?6lisdata6#954#5$"Y.pdf

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SB o. "2 also recogni>es t?e fact t?at rail transport systems are

sometime too e7pensi8e and tae some time to construct. Because of

t?is, t?e bill recommends t?e commissioning of Bus apid %ransit DB%E

systems ?erein sections of roads be designated e7clusi8ely for buses

t?at ould operate lie trains."$

ele8ance:

%?e SB o. "2 ill ?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 ill be an opportunity for !arias 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 !arias %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:66.t?elobbyist.bi>6congress-nes6item6"5$-sustainable-mass-transport-seen-as-solution-to-countryG&"G9$G@@s-traIc-oes

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Passenger transport may be public, ?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 grot?

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 folloing:

#. 0enesis

". Pangasinan !i8e Star

5. P?ilippine abbit

4. *ictory 1iner

. *iron

2. Partas

. !arias

9. !lorida

9. Maria de 1eon

10. Autobus

11. !ranco !rederico

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12. ominion

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%able #.2

1ist of

Brand6Manufacturer of

bus in t?e P?ilippines:

Body Manufacturers6re-

manufacturer of bus in t?e

P?ilippines:#. 0olden ragonbus". /iger Bus5. /ino Motors4. /yundai MotorCompany. ing 1ong

2. issan iesel. *ol8o Buses9. ?eng>?ou +utongBus@. aeoo Bus#$. )su>u Motors##. Mitsubis?i !uso%ruc and BusCorporation#". MA %ruc ZBus#5. Mercedes-Ben>

#. Aspire Auto Parts and epairSer8ices )nc.

". el Monte Motor ;ors, )nc.5. Pilipinas /ino6Parte7 Bus

Body4. Alma>ora Motors

Corporation. Santarosa P?ilippines2.


37/126


38/126

Mar!(t s8ar( ana'ysis

!igure #.2

Critia' s#(ss :ators in t8( in$#stry

CSF


39/126

CSF


40/126

t?e ?elp of customer loyalty it ill ?elp t?e company gro and lead to

a better and more reliable company. )t ill be able to impro8e its

ser8ices and satisfy t?e customers ?ic? t?e customer ill alays loo

for and mae t?em come bac for more.

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2.).) %ort(r/s Fi*( For(s Ana'ysis

!igure #.

Bar"ainin" %o9(r o: S#pp'i(rs%?e bargaining poer of supplier is

lo, 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

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t?ey ant to. Since t?ere are a lot of manufacturing companies ?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 ?ic? sells engine oil and anot?er

supplier ?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 sitc?ing costs.

umerous Suppliers

Conclusion: 1O;, OPPO%()%+

Bar"ainin" %o9(r o: C#stom(rs

A number of people ?o tra8el in a day. /olidays are t?e pea seasons

?ic? people go to a 8acation. People ?o ride buses are t?e ones ?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:

Bacard )ntegration T Passengers ?o are discontented it?

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.

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Sitc?ing Cost - %?e ser8ice it purc?ases from t?e ort?ern

1u>on Pro8incial 1and %ransportation )ndustry is standard or

undiLerentiated.


Ri*a'ry o: Comp(titorsT i8alry is ?ig? due to more competitors it?

t?e same ser8ice being oLered. Sitc?ing cost of customers is lo 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 ?o to compete and

continually run a?ead.

/ig? !i7ed Cost- Creates a strong pressure for all bus companies

?ic? often lead to rapidly escalating price cutting ?en e7cess

capacity is present.

Conclusion: /)0/, %/&A%

T8r(at o: N(9 Entrants T %?reat of entry is lo due to t?e

complication of netoring diLerent units, and capital reFuirement is

?ig? not only for a single bus but more importantly for ser8icing a

?ole Qeet. %?ey ill ?a8e a ?ard time gaining maret s?are since

t?eir credibility ?as not been establis?ed

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eterminants:

Capital eFuirements- %?e need to in8est large nancial

resources is greatly needed in order to procure buses ?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

?ic? t?ey pro8ide customer satisfaction, pro8iding t?em c?oices

beteen types of buses.

0o8ernment egulation- %?e 1%!B are no strict in issuing

license and business permit since t?e incident of syay and

mountain pro8ince bus cras?.


T8r(at o: S#>stit#t(sT /ig?, because t?ey are many alternati8e ay

of transportation going to 1aoag. &7amples of t?is are Airplanes, Boats,

and Pri8ate Cars.

eterminants:

Sitc?ing Cost - %?e sitc?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 !arias %ransit:

#. *iron %ransportation Company )ncorporated

1ocation: Corner #"$@ Blumentritt and apitan Streets,

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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" 4# 299

". !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" 5# 445

%able #.9C)%&

)A!arias %ransit !lorida *iron

o. ofyearse7isten

ce

5 years 2 years 52 years

%erminal1ocation

#"59 A./. 1acsonSt. Sampaloc,Metro Manila

1acson St D0o8.!orbesE corner

&spana Dnear (S%Ein Manila

#"$@ BlumentrittCor. apitan St.,Sampaloc #$$$

Manila

%argetAreas

Metro Manila,)locos Sur, )ocos

orte,Pangasinan,%arlac, Pagudpud


orte,Pangasinan,%arlac, Cagayan


orte,Pangasinan,%arlac *igan

Ser8ice Publictransportation and

freig?t

Publictransportation

and freig?t

Publictransportation

and freig?t

2$$ 2$ 22$

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!are $$

9$$-9$

$

9$$-9$

2$

9$$-9$

e8enu

e "$#"

P$,244,$@$ P52,"9#,@9 P#$$,92,"44

MaretS?are

$.92G $.2"G #."G

COM%ETITIVE %ROFIE MATRIX

%able #.@ !arias !lorida *ironCRITICA SUCCESS

FACTORS ?T R S R S R S#. !inancial position .#2 # .#2 " ."4 " .49". 1ocation of terminal .#" " ."4 " ."4 " ."4

5. Maintenance andrepairs .#2 4 .24 " .5" 4 .244. Customer Ser8ice .#2 " .5" " .5" 5 .49. Competiti8e !are .#2 4 .24 5 .49 5 .492. 0ood companyimage and reputation .#" 4 .49 " ."4 4 .49. Customer loyalty .#" " ."4 # ."4 5 .52%O%A1 #.$$ "." ".$9 5.44

%?e ?ig?est is *iron it? score of 5.44. Second is !arias it?

score of ".". 1ast is !lorida it? score of ".$9.

Critia' S#(ss Fators

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#. !inancial position

Ratin" 1 !arias in terms of nancial position is 8ery ea. %?e

company ?as negati8e compounded percentage grot? in prots in

t?e past 5 years.

Ratin" 1 !lorida in terms of nancial position is ea. )n t?e year

"$#", !lorida still ?as t?e loest re8enue in t?e nort?ern pro8incial

land transportation industry.

Ratin" ) *iron in terms of nancial position is ea. %?e company

?as net loss of P"",2#.$$ in t?e year "$#".

". 1ocation of terminal

Ratin" ) !arias 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 !arias rating in maintenance and repairs are based on

t?e case of bus accident. %?e company ?as only " ma=or bus

accident reported in nes t8.

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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 *ironrating in maintenance and repairs are based on t?e

case of bus accident. %?e company ?as only 4 ma=or bus accident

reported in nes t8.

4. Customer Ser8ice

Ratin" ) !arias still uses manual recording system maing t?eir

operation sloly compared to its competitors

Ratin" ) !lorida rating in customer ser8ice is based on its lo

re8enue compared to *iron and !arias.

Ratin" + *iron rating in customer ser8ice is based on its ?ig?

re8enue compared to !lorida and !arias.

. Competiti8e !are

Ratin" 2 !arias bus fare range from 2$$ to 9$ depending on bus

type. %?e company ?as t?e loest 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 !arias.

Ratin" + *ironbus fare range from 22$ to 9$ depending on bus

type. %?e company ?as ?ig? fare compared to !arias.

2. 0ood company image and reputation

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Ratin" 2 !arias 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 no 5 years of e7istence.

Ratin" ) !lorida rating in good company image and reputation is



Ratin" 2 *iron rating in good company image and reputation is



. Customer loyalty

Ratin" ) !arias rating in customer loyalty is based on its maret

s?are. %?e company ?as $.92G of maret s?are in year "$#".

Ratin" 1 !lorida rating in customer loyalty is based on its maret

s?are. %?e company ?as $.2"G of maret s?are in year "$#".

Ratin" + *iron rating in customer loyalty is based on its maret

s?are. %?e company ?as #."G of maret 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

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Construction of e7pressay connecting ort?

1u>on &7pressay D1&'E and Sout? 1u>on

&7pressay DS1&'E

Political

Alternati8e route of t?e %arlac to 1a (nion

&7pressay D%P1&'E

Political

e8elop %ransport App %ec?nological)ntegrating 0PS tracing system %ec?nological

T8r(ats Maro (n*ironm(ntS("m(nt

Proposal construction of bullet train system PoliticalProposal construction of railay t?at ill co8er

t?e entire nort? and sout? netors of t?e

P?ilippine ational ailays DPE

Political

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2.+.) Et(rna' Fator E*a'#ation Matri

%able #.##

(y Int(rna' Fators ?(i"8t

Ratin"

?(i"8t($

Sor(Opport#niti(sConstruction of e7pressay connecting

ort? 1u>on &7pressay D1&'E and Sout?

1u>on &7pressay DS1&'E

.#$ 4 $.4

Alternati8e route of t?e %arlac to 1a (nion

&7pressay D%P1&'E

.#$ 4 $.4

!orecast of ;orld Crude Oil price ill

decrease from #$6barrel in "$#"

to @9.6barrel by "$"$

.$ 5 ."#

e8elop %ransport App .#$ 4 $.4)ntegrating 0PS tracing system .#$ 4 $.4Proposed Bus apid %ransit System .$2 5 .#9ecreasing forecasted inQation rate from

"$#4 to "$#2

.$ 5 ."#

)ncreased 0P rate for t?e years "$#4 to

"$#2

.$ 5 ."#

T8r(atsProposal construction of bullet train system .#$ # .#$Proposal construction of railay t?at ill

co8er t?e entire nort? and sout? netors of

t?e P?ilippine ational ailays DPE

.#$ # .#$

Proposal mandatory of installing CC%* .$2 " .#"

!orecasted )ncreasing Peso ollar &7c?ange

ate up to "$#2

.$ " .#4

Tota' 1.4 ).;=

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Opport#niti(s

Ratin" 2

T8( onstr#tion o: (pr(ss9ay onn(tin" Nort8 #on

Epr(ss9ay NEX an$ So#t8 #on Epr(ss9ay DS1&'E is a

ma=or opportunity for !arias to e7pand t?eir ser8ices in t?e Sout?ern

pro8inces.

Ratin" 2

T8( A't(rnati*( ro#t( o: t8( Tar'a to a Union

Epr(ss9ay T%EXis a ma=or opportunity for !arias. %?e %arlac to

1a (nion &7pressay D%P1&'E ill mae t?e transportation faster from

Manila to )locos, t?erefore less cost for gasoline.

Ratin" +

T8( :or(ast o: 9or'$ r#$( oi' pri( 9i'' $(r(as( :rom

1460>arr(' in )41) to G;.=0>arr(' >y )4)4 is a minor

opportunity for !arias because t?ere ill be less e7pense for gasoline.

Ratin" 2

D(*('opin" Transport Appis a ma=or opportunity for !arias to

apply it in its operation. )ntegrating t?is ind of tec?nology ill

certainly pro8ide competiti8e ad8antage against its competitors.

Ratin" 2

Int("ratin" -%S tra!in" syst(m is a ma=or opportunity for

!arias to increase security and safety, reduce fuel costs, and impro8e

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customer ser8ice. %?is opportunity ill pro8ide !arias %ransit a better

ser8ice and customer attraction.

Ratin" +

T8( propos($ B#s Transit Syst(m BRT is a minor

opportunity for !arias. %?is opportunity ill pro8ide a safe and secure

public transport system and ill reduce t?e daily traIc =ams, t?erefore

less e7pense for gasoline.

Ratin" +

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 !arias. %?e forecasted inQation rate and 0P rate

ill liely result to increase in industry re8enue.

T8r(ats

Ratin" 2

T8( proposa' onstr#tion o: >#''(t train syst(mis a ma=or

t?reat for !arias %ransit because bullet train system can be an

alternati8e and faster ay of transportation, t?erefore t?ere is a lo

sitc?ing cost from bus transportation to bullet train transportation.

Ratin" 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 %NRis a ma=or t?reat for !arias %ransit because t?is can

be an alternati8e ay of transportation, t?erefore t?ere is a lo

sitc?ing cost from bus transportation to railay transportation.

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Ratin" +

T8( proposa' man$atory o: insta''in" CCTVis minor t?reat

for !arias %ransit if soon implemented because t?ere ill be a great

e7pense for !arias in installing CC%* in t?eir 29 buses on ser8ices.

!ailure to accomplis? t?e mandatory installment of CC%* ill aLect

!arias because t?ey ill ?a8e problems in t?eir business license and

permit t?at ill cause delay in operation and prot loss.

Ratin" +

T8( :or(ast($ inr(asin" %(so Do''ar E8an"( Rat( #p

to )417is a minor t?reat for !arinas %ransit because ?en t?e peso

goes don, 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 ell.

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V. Int(rna' Ana'ysis

6.1 Company %(r:orman(

!arias %ransit re8enue from "$$9 to "$#"

!igure #.9

%?e grap? abo8e s?os t?e increasing re8enue of !arias %ransitfrom "$$9 to "$#".

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-ro9t8 Ratio

Compounded percentage grot? in total sales

!igure #.@

%?e grap? abo8e s?os t?e compounded grot? percentage in

total sales of !arias %ransit from "$$9 to "$#". %?e re8enue from

"$## to "$#" increased by .5G. %?e re8enue from "$#$ to "$##

increased by #$G. %?e re8enue from "$$@ to "$#$ increased by #G.

%?e re8enue from "$$9 to "$$@ increased by 5.G. %?e re8enue from

"$$ to "$$9 decreased by -"#G.

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et 1oss

Annual percentage grot? in prots

!igure #.#$

%?e grap? abo8e s?os t?e negati8e percentage grot? in

prots of !arias %ransit from "$$9 and "$#$ up to "$#". %?e negati8e

percentage grot? in prots from "$$ to "$$9 is -$.. %?e negati8e

percentage grot? in prots from "$$@ to "$#$ is -$.4. %?e

negati8e percentage grot? in prots from "$#$ to "$## is -2.". %?e

negati8e percentage grot? in prots from "$## to "$#" is -#.$4.

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%ro&ta>i'ity Ratio

0ross Prot Margin

!igure #.##

%?e grap? abo8e s?os t?e gross prot, operating, and net prot

margin of !arinas transit from "$$9 to "$#". %?e gross prot margin

increased from D$.$#E to "5.$. %?e operating prot margin increased

from $.$# to $.$". %?e net prot margin decreased from $.$# to

-$.$#.

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Ati*ity Ratio

!igure #.#"

%?e grap? abo8e s?os t?e increasing 7ed assets turno8er ratio

of !arinas transit from $.4# D"$$9E to 4.2" D"$##E. %?en decreased

from 4.2" D"$##E to @.29 D"$#"E. %?e ?ig?er t?e 7ed assets

turno8er ratio t?e better. )t means t?at !arinas transit are ma7imi>ing

t?e utili>ation of t?eir assets.

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(*(ra"( ratio

ebt to total assets

!igure #.#5

%?e grap? abo8e s?os t?e debt to total assets ratio of !arinas

transit from "$$9 to "$#". %?e debt to total assets ratio increased from

$.$$" to $.$2. %?e loer t?e debt to total assets ratio t?e better. )t

means t?at !arinas transit assets can co8er all of t?eir debt.

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iH#i$ity ratio

!igure #.#4

%?e grap? abo8e s?os 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 .92.

6.) Int(rna' A#$it

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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 ne plans ?ic? ill 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 inter8ie by Ms. Soniata, assistant manager in

!arias %ransit manila oIce t?e company ob=ecti8es and goals are not

measured and ell communicated to t?e employees. Also t?ere is no

mission-8ision posted any?ere in t?e oIce. %?e company doesn3t

?a8e mareting department. %?e role of mareting is done by t?e

admin and management. ot all managers do t?e planning only t?e top

management.

%?e / manager ill be t?e one to inter8ie t?e applicants and

screen if t?e applicant Fualies t?e =ob specications. 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 lo. %?e employees are oring in

t?e company for many years. %?ere is a lo employees3 turno8er and

absenteeism. Ms. Soniata said t?ere is ne8er problem about

absenteeism because t?eir policy is no or no pay. %?e management

doesn3t gi8e any reards or additional benets to t?e employees. %?e

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only benets 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

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President T %?e one ?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,

protability, and grot? as an organi>ation. e8ie acti8ity reports and

nancial statements to determine progress and status in attaining

ob=ecti8es and re8ise ob=ecti8es and plans in accordance it? current

conditions.

Operations Manager T %?e Operations Manager is t?e one ?o is

responsible for close super8ision of terminal personnel to facilitate

timely and accurate bus tra8els. e8ies 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 re8ies t?e company3s nancial records. Assists in

budget process, annual audits, and produces nancial reports. /andles

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employees3 payrolls and t?e one ?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 it? recruitment and selection of employees,

training and de8elopment, impro8ement of performance and

producti8ity, pay and fringe benets and creating good relations?ips

beteen managers and employees.

Administration Manager T %?e Administration Manager is t?e one ?o

is in c?arge of procurement, responsible for t?e company3s oIce les

and documents and t?e one ?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?-prole clients and top

business leaders. %?e one ?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 eely report to t?e accounts manager to no t?e status of t?eir

specic accounts.

/uman esource

%?e tas ?ere t?e company usually screen and get e7perienced

professional bus dri8ers it? good record on dri8ing and preferably

nos t?e route of t?e road of Manila going to )locos and from )locos

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going bac to Manila 8ice-8ersa. &7pert bus mec?anics are also

screened if t?ey are ell e7perienced on bus problems and mec?anics

?o studied and nis?ed 8ocational course lie automoti8e and do

?a8e a 8ocation certicate t?at ser8es a proof t?at t?ey ere trained

ill be a big factor for t?e applicant and for t?e company. ely

graduates ?o are also applying for secretarial position are also

screened. )locano language is also a reFuirement ?en applying for a

position in t?e company, since t?e company is an )locano family oned

company, t?e oner and t?e family decided and include t?is as a must

for t?em to ?a8e a good communication and relations?ip beteen an

employee and a superior and to ?a8e t?e )locano spirit in t?e company.

%?e company also recei8es needed manpoer from referrals of t?eir

corporate clients and from t?eir employees as ell.

!irst step is for / to post a8ailable =obs, t?en to screen applicants

?et?er t?ey are eligible. After t?at step it is up to t?e / people to

inform t?e applicant if ?e maes it t?roug? for orientation or ?e

doesn3t.

6.).)Mar!(tin"

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%?e Sales from "$#$ to "$## ?as increased by #$G t?erefore t?e

rm ?a8e an eLecti8e sales organi>ation and good customer ser8ice.

According to Ms. Soniata, t?e company doesn3t conduct maret

researc?. %?e company doesn3t ?a8e mareting department. %?e role

of mareting is done by t?e admin and management. %?e company

uses tourism promotion cooperated it? go8ernment programs,

discounts, !aceboo page, and titter in t?eir promotion, ad8ertising,

and publicity strategy. According to Ms. Soniata, t?e company does not

mae muc? eLorts and mae 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 ill. %?eir price

?as to be aligned it? t?e price range imposed by 1%!B. %?e

company3s ser8ices are priced competiti8ely. As of


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!igure #.#

%ourism and Promotions

One of t?e main mareting acti8ities of t?e company in8ol8es t?e

P?ilippine %ourism of t?e ort?ern part of t?e country ?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

it? 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 it? t?e go8ernment by cooperating in suc? programs lie

t?e ;O; P?ilippines t?at is ?andled by t?e ept. of %ourism. ;it? t?is

cooperation it? tourism !arias %ransit ill be able to gain more

customers and promote more tourism in t?e country.

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iscounts

%?e company gi8es discounts to customersU t?is mareting

acti8ity occurs on seasons lie summer 8acations, C?ristmas, /oly

ee, and All Souls and Saints ay. !arias %ransit. 0i8es "$G discount

to eac? passenger t?at ould 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 satised6?appy customers.

6.).+%ro$#tion0Op(rations A#$it

!arias %ransit as t?e rst to introduce air-conditioned buses in

t?e pro8ince, t?e rst to introduce comfort room in t?e air-conditioned

buses and no t?e !arias %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 ?y customers trust t?e !arias %ransit. )t

started #@4#, for 5 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 ell-non bus companies t?at go to 1aoag. %?is is a

22 ?ttp:66en.iipedia.org6ii6!ariGC5GB#asV%ransitVCompany

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strengt? of !arias %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 ill 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, it? t?eir supplier ing 1ong t?ey are

updated it? t?e neest en?ancements and neest bus oLered in t?e

maret 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 al-in

reser8ation.

!igure #.#9

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P?one eser8ation

On reser8ation t?roug? p?one t?e customer pics up t?e p?one and

dials any of t?e a8ailable lines of !arias %ransit.

\ %?en t?e employee recei8es t?e call and guides t?e customer for

?at ?e6 s?e ants.

\ ;?en t?e customer describes t?e type of accommodation t?at

?e needs, t?e employee ill record it and as for basic information t?at

is necessary.

\ %?e employee ill c?ec t?e time and date of tra8el is

sc?eduled and 8eries t?e a8ailability of t?e slot, and t?e employee

ill conrm to t?e customer ?at ?e6s?e is getting.

\ %?en t?e secretary ill 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.

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;?ile on t?e al-in reser8ation

\ %?e customer goes to !arias %ransit terminal and enters t?e

reser8ations oIce t?en ass 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 ill t?en c?ec t?e records manually and loos for

8acancies in t?e customer3s desired time and day, and t?en double

c?ecs6conrm it?

%?e customer if ?e6s?e ould ant to be reser8ed t?ere. )f t?e

customer agrees, t?e employee ill manually encode t?e information

t?at as gat?ered in t?e logboo.

\ %?e employee c?arges t?e customer for t?e reser8ation fee and

ass ?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 no lea8e and t?e employee6cas?ier records t?e

transaction manually.

Alt?oug? it some?o 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?os t?e sign of eaness because t?e

transactions are done manually and it lacs eIciency on t?e

operations department.

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!igure #.#@

;al-)n eser8ation

)n al in reser8ation t?e customer simply 8isits t?e terminal

reser8e a seat according to ?is time and date preference, and t?e

secretary ill 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 ass t?e customer again

to c?oose a diLerent seat or s?os t?e customer t?e remaining

a8ailable seats.

!igure #."$

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!reig?t %ransportation

%?e company also ?as a freig?t ser8ice and it is done manually

lie t?e reser8ations of t?e passengers, t?e pacages 8aries in si>es

and form. Customers lea8e t?eir pacages to t?e freig?t area and t?ey

ill pay it to t?e cas?ier. %?e cas?ier ill issue a receipt to t?e

customer and t?e pacage ill be endorsed to t?e conductor and send

t?e pacage from Manila to )locos or 8ice 8ersa. (pon arri8al of t?e

pacage in t?e destination t?e customer ill t?en pic up t?e pacage

at t?e terminal. %?e pacages t?at t?ey send are Cartons, Sacs, Bo7es

or simple letters. %?e source of t?is eaness comes from lac of

tec?nology lie in t?e reser8ation of passengersU information of t?e

freig?t or e8en t?e freig?t pacage itself can be lost due to t?is manual

information system.

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!reig?t Prices: !arias %rans eli8ery Ser8ice%able #.#5

5G Additional basedon t?e declared 8alue

AOA- MANIA

ETTER " "ENVEO%E $ $%ACA-E 2$ 2$CARTOON3

SMA$ $

MEDIUM 9$ 9$SAC3

RICE0CAVAN#$ #$

SAC RICE #$$ #$$BAIBAYAN BOXES #$ #$

DRUM0%AI #$$-#$ #$$-#$

BI- STYRO0COOER "$$ "$$&P&S (PO %/& S)& Z ;&)0/%

!igure #."#

Sc?eduled %rips and outes of Buses

%?roug?out t?e years !arias %ransit ?as de8eloped a specic

target maret. %?ese are passengers tra8elling on a nort? bound route

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77/126

terminal, t?e mec?anics c?ecs and inspects t?e buses breas, air-con,

lig?ts, engine, tires, oil, gas, and ater. So t?at t?ey ould easily no

t?e problem and t?ey can easily or on it. %?ey also double c?ec it

?en t?ey do a ma=or stop T o8er at ic3s Caf] in Pangasinan, Sison.

%?e maintenance of t?e bus is also c?eced during eeends so t?at

t?e bus ill ?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 as done t?e

mec?anic reports it to t?e operations manager, ?en gi8en t?e go

signal and t?e parts needed t?e mec?anic t?en 7es t?e bus t?en t?e

dri8er ould ?a8e to get t?e bus from t?e garage.

As stated in t?e inter8ie by Ms. Soniata, !arias %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 fe minor accidents.

outine c?ec-ups are implemented by t?eir maintenance cre as

often as possible. And due to ?ig? political inQuence, t?e security of

t?e !arias %ransit is abo8e a8erage. %?is is a strengt? because t?e

customers3 main concern ?en tra8eling is safety.

6.).2 Finan(

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%?e nance department manages all nancial acti8ities and turnsit o8er to t?e nance manager for appro8al.

%able #.#4

A%)OS %+P& "$$9 "$$@ "$#$ "$## "$#"1iFuidity Currentatio

#59.@ #$.#" 95.@" 9".4 .92

1e8erage ebt tototalassetsratio

$.$$"$ $.$$"4 .$$" .$$4@ $.$2

Acti8ity

!i7edassetsturno8erratio

$.4# $.4 $.25 .4 $.@

%otalAssets%urno8er

$."@ $.5$ $.5 $.44 $.4

Protability0rossprotmargin

D$.$#E $.#2 $.#5 #5.$@ "5.$

OperatingProtMargin

$.$4 $.$4 $.$# D$.5E $.$"

et protmargin

$.$5 $.$5 $.$# D$.5E D$.$#E

eturn on)n8estmentDO)E

$.$# $.$# $.$$" D$.#E $.$#

OA $.$4 $.$4 $.$# $.54 $.$"0rot? Sales D"#E 5. # #$ .5

et)ncome

D$.E $." D$.4E D2."E

D#.$4E

S#mmary o: Ma@or Str(n"t8s an$ ?(a!n(ss(s

%able #.#

Str(n"t8s ?(a!n(ss(sCompounded annual grot? rate

is .4"G from "$$9 to "$#"

o Mareting Manager

Competiti8e fare Manual ecord System

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AcFuired 4 ne buses it?

comfort rooms and ;i-!i

1ac of Mareting esearc? and

Strategy

ecreased operating e7pense by

.9G from "$## to "$#"

egati8e compounded percentage

grot? in prots from "$#$ to

"$#"

Int(rna' Fator E*a'#ation Matri%able #.#2

(y Int(rna' Fators ?(i"8t

Ratin"

?(i"8t($

Sor(Str(n"t8s

Compounded annual grot? rate is .4"Gfrom "$$9 to "$#"

.#$ 4 $.4

1o case of bus accident .$4 5 .#"Competiti8e fare .$@ 4 .52AcFuired 4 ne buses it? comfort roomsand ;i-!i

.$@ 4 .52

ecreased operating e7pense by .9Gfrom "$## to "$#"

.#$ 4 $.4

0ood Company )mage and eputation .$4 5 .#"1o employee turno8er .$4 5 .#"

?(a!n(ss(so Company ;ebsite .$4 " .$9o online booing .$4 " .$9Poor %erminal 1ayout and ;or place atManila oIce

.$4 " .$9

o Mareting Manager .$@ # .$@Manual ecord System .#$ # .#$1ac of Mareting esearc? and Strategy .$@ # .$@egati8e compounded percentage grot?in prots from "$#$ 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 !arias. %?ere is a positi8e grot?rate in t?e company.

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Ratin" +

o9 n#m>(r o: >#s ai$(ntare minor strengt? of !arias.

;it? good maintenance and repairs of buses and ?ig?ly silled bus

dri8ers, !arias %ransit ?as t?e least accident reports in public

transportation and because of t?at !arias is one of t?e most trusted

pro8incial transportation business ?ere in t?e P?ilippines.

Ratin" 2

As of #s(s 9it8

om:ort rooms an$ ?i3Fi. %?is is a ma=or strengt? of !arias

because customer no a days prefer buses it? ;i-!i. !arias ill

certainly attract and satisfy customers because of buses it? comfort

rooms and ;i-!i.

Ratin" 2

ecreased operating e7pense by .9G from "$## to "$#" is a

ma=or strengt? of !arias. %?e decrease in operating e7pense some?o

related to company3s eIciency.

Ratin" +

-oo$ ompany ima"( an$ r(p#tationis a minor strengt? of

!arias %ransit. %?e long e7istence in t?e industry is one of t?e factors

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?y customers trust t?e !arias %ransit. )t started #@4#, for 5 years

t?e company ?as establis?ed its name in t?e public transportation

industry.

Ratin" +

o9 (mp'oy(( t#rno*(ris a minor strengt? of !arias %ransit.

/a8ing a lo employee turno8er means !arias employees are ?appy

and loyal to t?e company. 1o turno8er maes it easier for t?e

company to focus on its business at ?and t?an ?iring and adapting to

ne staL.

?(a!n(ss(s

Ratin" )

Not 8a*in" a ompany 9(>sit(and on'in( >oo!in" syst(m

is a minor eaness because competitors lie Partas Bus 1ine, *ictory

1iner, and !i8e Star Bus ?a8e already a ebsite and *ictory 1iner ?a8e

already an online booing system, t?erefore competitors ?a8e a ?uge

ad8antage o8er !arias %ransit in terms of reac?ing customers, online

ad8ertising, and oLering best ser8ices.

Ratin" )

T8( poor t(rmina' 'ayo#t an$ 9or! p'a( at Mani'a oK(

is minor eaness of !arias. 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

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eye strains and fatigue to employees. %?is ind of or en8ironment

aLects t?e employees3 producti8ity.

Ratin" )

According to Ms. Soniata, until today !arias %ransit is still

operating on a man#a' >as($ syst(m.%?eir business operations are

still being c?eced and recorded manually. %?is is a ma=or eaness

because operating manually is time consuming and if t?e manual

record boo is lost data ill be completely lost.

Ratin" 1

Not 8a*in" a mar!(tin" oK(r is a ma=or eaness of !arias

%ransit. )t is necessary to ?a8e mareting oIcer especially !arias

%ransit ?as a ?ig? ri8alry of competitors. !arias it?out mareting

oIcer ill encounter poor targeting and less responsi8e to customer

needs and ants.

Ratin" 1

T8( 'a! o: mar!(tin" r(s(ar8 an$ strat("y is a ma=or

eaness because t?e company ill lose t?eir loyal customers if t?ey

failed to identify and satisfy or e7ceed customer needs and ants.

Ratin" 1

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T8( n("ati*( p(r(nta"( "ro9t8 in pro&ts in#rr($ :rom

)414 to )41)is ma=or eaness. %?is reQects t?at t?e company did

not made a prot for 5 years.

%?e ey strategic management issuesidentied are t?e negati8e

compounded percentage grot? in prots for t?e past 5 years because

of ?ig? operating e7pense and t?e lac of mareting researc? and

strategy of t?e rm because of not ?a8ing a mareting oIcer.

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VI. STRATE-Y FORMUATION

7.1 S?OT Matri

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7.) IE Matri

!igure #."4

%O%A1 )!& A%)0___2.5___

%O%A1 Strong

A8erage

;ea

&!&5.$to4.$

".$ to".@@

#.$to

#.@@A%)0 /ig?

) )) )))___2.87__

5.$ to4.$

Medium

)* * *) ".$ to".@@

1o

*)) *))) )'#.$ to#.@@

!arias %ransit is in t?e Fuadrant 8e ?ic? means ?old and

maintain. %?e strategies for t?is Fuadrant are maret penetration and

product de8elopment.

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7.+ -ran$ Matri

!igure #."

AP) MA&% 0O;%/

Huadrant )) Huadrant )#. Maretde8elopment

#. Maretde8elopment

". Maretpenetration

". Maretpenetration

5. Productde8elopment

5. Productde8elopment

4. /ori>ontalintegration

4. !orardintegration

. i8estiture . Bacardintegration

2. 1iFuidation

2./ori>ontalintegration

.Concentricdi8ersication

;&ACOMP&%)%)*&

POS)%)O

S%O0COMP&%)%)*&POS)%)O

Huadrant ))) Huadrant )*

#.etrenc?ment

#.Concentricdi8ersication

". Concentricdi8ersication

"./ori>ontaldi8ersication

5. /ori>ontaldi8ersication

5.Conglomeratedi8ersication

4.Conglomeratedi8ersication

4.


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S1O; MA&% 0O;%/

!arias %ransit is in Fuadrant to ?ic? means t?e industry

grot? is ?ig? and t?e competiti8e position is ea. %?e basis of ?ig?

industry grot? is t?e computed CA0 ?ic? is 2.4#G. %?e basis of

ea competiti8e position is t?e negati8e compounded percentage

grot? in prots.

7.2 Spa( Matri

!igure #."2

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!arias %ransit is in t?e conser8ati8e side Fuadrant. %?e

strategies in t?is Fuadrant are maret penetration, maret

de8elopment, product de8elopment and related di8ersication.

7.6 BC- Matri

!igure #."2

ame

Brand

MaretS?are

1eader

MaretS?are

elati8e

MaretS?are

BrandSales*alue

Brand

ProtMargin

Maret

0rot?ate

!arinas %ransit$.92G

[email protected]

$.$"

$,244,$@$

"5.$G 2G

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Since t?ere is no a8ailable data of breadon of re8enues in

freig?t and transportation, t?e BC0 matri7 made is based on t?e ?ole

organi>ation. !arinas %ransit is on t?e Fuestion mar side ?ic? means

industry grot? is ?ig? and t?e nancial position of t?e rm is ea.

%?e strategies for Fuestion mars are maret penetration, maret

de8elopment, product de8elopment, and di8estiture.

S#mmary o: Strat("i(s

%able #.#

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

. Unrelateddi"er(i)ication *

+. ,ori-ontal interation X 1

/. For0ard interration *

. Back0ard interation *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 maret penetration

and product de8elopment. %?e second ?ig?est score is maret

de8elopment. Maret penetration and product de8elopment ?a8e a

total score of and for maret de8elopment a total score of 4.

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LUANTITATIVE STRATE-IC%ANNIN- MATRIX LS%M%?e assign an attracti8eness score DASE for eac? strategy related to eac? S;#Xnot acceptable, "Xpossibly acceptable, 5Xprobably acceptable, 4Xmost a

!igure #."

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VII. OBECTIVES STRATE-Y RECOMMENDATIONS AND ACTION

%ANS

=.1 Strat("i an$ Finania' O>@(ti*(s

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%?e strategic ob=ecti8es of !arias %ransit are rst to increase

sales by at least G annually for t?e ne7t 5 years by maintaining its

maret presence and t?roug? aggressi8e mareting penetration and

maret de8elopment

=.) R(omm(n$($ B#sin(ss Strat("i(s

Mar!(t %(n(tration

#. Strategy: ;2Z%" /ire a mareting oIcer and oLer reard

system for customers

Person in c?arge: / manager for ?iring mareting oIcerU Mareting

oIcer for planning, organi>ing, directing, and controlling of reard

system.

Purpose: %o attract customers and maintain loyal customers

etailed Plan: !or e8ery customer t?at ill ride t?e bus t?ere ill be a

reard points lie mabu?ay miles or sm ad8antage card. )t can be

done t?roug? sticers lie starbucs so it on3t be costly. After t?e

customer reac?ed t?e certain number of reard points ?e6s?e ill be

gi8en a free bus ride.

". Strategy: S4Z%" &7ecute intensi8e promotion for t?e acFuired

four ne buses in social netoring sites lie titter, faceboo, and

instragram.

Person in c?arge: Mareting oIcer

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Purpose: %o promote ne buses and to reac? more customers t?roug?

social netoring

etailed Plan: Create a contest in social netoring sites. %?e contest

ill be t?e mareting manager ill s?are a poster featuring ne buses

it? t?e cost of bus fair, destinations, and routes and t?en t?e people

ill ?a8e to s?are to get a c?ance to in a free bus ride manila to

)locos or 8ice-8ersa. %?en after # and ?alf mont?s randomly a customer

ill be pic as t?e inner.

5. Strategy: ;#ZO" )n8est at least 5 computers. /ire an ).%. e7pert

and mae a ebsite. (se t?e %P1&' as ne route and promote it on

ebsite

Person in c?arge: Accounting, / manager, Mareting oIcer

Purpose: to mae t?e recording system automated, utili>e t?e poer of

internet, and to capture more maret

etailed Plan: )n8est at least 5 computers to mae t?e system

automated. /ire an ).%. e7pert to mae a company ebsite. (tili>e t?e

route of %P1&'.

)n maret penetration, t?e best strategy is Strategy: S4Z%" &7ecute

intensi8e promotion for t?e acFuired four ne buses in social

netoring sites lie titter, 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 beteen customersR use of s

Documents

238976396 Strategic Management Paper Bus Transportation Sample