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8/10/2019 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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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.
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Mar!(t s8ar( ana'ysis
!igure #.2
Critia' s#(ss :ators in t8( in$#stry
CSF
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CSF
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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.
Conclusion: 1O;, OPPO%()%+
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?.
Conclusion: 1O;, OPPO%()%+
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
Metro Manila,)locos Sur, )ocos
orte,Pangasinan,%arlac, Cagayan
Metro Manila,)locos Sur, )ocos
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
based on t?e years of e7istence of t?e company and t?e case of bus
accidents reported. %?e company is no 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 no 52 years of e7istence.
. 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 #$$ #$$BAIBAYAN BOXES #$ #$
DRUM0%AI #$$-#$ #$$-#$
BI- STYRO0COOER "$$ "$$&P&S (PO %/& S)& Z ;&)0/%
!igure #."#
Sc?eduled %rips and outes of Buses
%?roug?out t?e years !arias %ransit ?as de8eloped a specic
target maret. %?ese are passengers tra8elling on a nort? bound route
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terminal, t?e mec?anics c?ecs and inspects t?e buses breas, air-con,
lig?ts, engine, tires, oil, gas, and ater. So t?at t?ey ould easily no
t?e problem and t?ey can easily or on it. %?ey also double c?ec it
?en t?ey do a ma=or stop T o8er at ic3s Caf] in Pangasinan, Sison.
%?e maintenance of t?e bus is also c?eced during eeends so t?at
t?e bus ill ?a8e a good condition e8ery time t?ey use it for tra8el.
%?e dri8er tries to identify t?e problem and reports it to t?e
mec?anic for t?e in8estigation. Once t?e in8estigation as done t?e
mec?anic reports it to t?e operations manager, ?en gi8en t?e go
signal and t?e parts needed t?e mec?anic t?en 7es t?e bus t?en t?e
dri8er ould ?a8e to get t?e bus from t?e garage.
As stated in t?e inter8ie by Ms. Soniata, !arias %ransit can be
regarded for ?a8ing a 8ery ?ig? safety rating as compared to ot?er bus
companies. )n t?e companies many years of being in t?is industry, it
?as only encountered " ma=or accidents and 8ery fe minor accidents.
outine c?ec-ups are implemented by t?eir maintenance cre as
often as possible. And due to ?ig? political inQuence, t?e security of
t?e !arias %ransit is abo8e a8erage. %?is is a strengt? because t?e
customers3 main concern ?en tra8eling is safety.
6.).2 Finan(
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%?e nance department manages all nancial acti8ities and turnsit o8er to t?e nance manager for appro8al.
%able #.#4
A%)OS %+P& "$$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
$.$"
$,244,$@$
"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