Business Policy Project (Revised)

8/9/2019 Business Policy Project (Revised)

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NATIONAL UNIVERSITY College of Business and Accountanc

!EARIN! TO"AR#S ASEAN INTE!RATION $01%&

A STRATE!IC 'ANA!E'ENT (A(ER )OR

S'ALL AN# 'E#IU' ENTER(RISE *S'E+

)a,i-as T,ansit Co./an

In Partial Fullment for the Course Requirement

BUSINESS POLICY AN S!RA!E"Y

Submitted to:

OSELITO A 2UINTO3 'BA

Submitted by:

BUENAVENTURA R3 ARIEL B

1st Se.este,3 AY $014 $01%

TABLE O) CONTENTS

Strategic Management Paper for SME


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Intro#u$tion %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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Business Prole

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Business Assessment %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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)ision an# *ission E+aluation %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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Finan$ial Assessment %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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S-O! Anal.sis %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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Strategi$ Con$lusions %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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Strategi$ Re$ommen#ations %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%Page &&

Referen$e %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

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I INTRO#UCTION

*etro $ities2 of all si3es2 fa$e a $risis of ur4an trans5ort% es5ite

in+estments in roa# infrastru$ture2 an# 5lans for lan# use an# trans5ort

#e+elo5ment2 all $ities fa$e the e+er in$reasing 5ro4lems of $ongestion2

tra6$ a$$i#ents2 air2 an# noise 5ollution% Large $ities are fa$ing a ra5i#gro7th of 5ersonal +ehi$les 8t7o 7heelers an# $ars9 an# in me#ium an# small

$ities #i:erent forms of interme#iate 5u4li$ trans5ort 5ro+i#e# 4. the

informal se$tor are struggling to meet the mo4ilit. #eman#s of $it. resi#ents%

Pu4li$ trans5ort is a $riti$al element of ur4an trans5ort s.stem% A great

em5hasis nee#s to 4e gi+en to the 5u4li$ trans5ort s.stem 4e$ause it o:ers

the most e6$ient utili3ation of limite# resour$es ; energ. an# lan#% At

5resent2 a range of 5u4li$ trans5ort o5tions are a+aila4le for #i:erent $it.

si3es% A $areful anal.sis is require# to sele$t the most a55ro5riate te$hnolog.for a gi+en $it. si3e%

Rail 4ase# s.stems ha+e often 4een re$ommen#e# 4ase# on their

$a5a$it. to mo+e large num4er of 5eo5le 8< &=2=== 5assengers>5h5#9%

?o7e+er2 the. are $ontro+ersial o5tions of 5u4li$ trans5ort 4e$ause of the

large nan$ial 4ur#en the. $an im5ose on $it. 4u#gets% Also2 the e@isting rail

4ase# s.stems ha+e sho7n lo7 ri#ershi52 lo7 $a5a$it. utili3ation an# high

o5erating su4si#ies% Bus trans5ort is the most #esira4le an# sustaina4le

s.stem from so$ietal 5ers5e$ti+e% A 7ell 5lanne# 4us s.stem $an 5ro+i#e ahigh le+el of mo4ilit. to a large se$tion of the 5o5ulation 7ith least $ost%

?o7e+er2 a 5oorl. 5lanne# s.stem $auses in$on+enien$e to the users2 loses

ri#ershi52 en$ourages use of 5ri+ate +ehi$les an# im5oses nan$ial 4ur#en on

the o5erator%



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6a7ing featu,ed in Ilocos Ti.es to cate, so.e ot8e, S'E9s in

t8e ,egion3 )a,inas T,ansit 8as :,oug8t to t8e Ilocanos t8e essence

of :eing a leade, not ;ust in go7e,ning *)a,i-as is 'ediu. Entities in t8e latest I)RS fo, S'E9s+ .anage to

continuousl /,o7ide e?ce/tional t,ansit se,7ices to t8ose =8o

=anted to t,a7el : land going to no,t8 /a,ticula,l in t8e cit of

Laoag3 Ilocos No,te "it8 its $01$ @nancial ,e/o,t of 8a7ing a total

assets of (8/ 15130$3$1$43 *:et=een 5 'illion to 5%0 'illion to :e

conside,ed as S.all>'ediu. Entities acco,ding to t8e latest I)RS fo,

S'Es+ t8e co./an is see


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Farias !ransit2 a sole famil. 5ro5rietorshi5 7as foun#e# 4. the late

*ar$elo )alleos Farias of )igan2 Ilo$os Sur together 7ith his 7ife2 the late

Rosa Peralta Luna of Pasuquin2 Ilo$os Norte%G

Four .ears 4efore the out4reaD of the Se$on# -orl# -ar in e$em4er

/,'/2 *ar$ello )% Farias #ie# an# the management of the 4usiness fell in the

shoul#ers of his 7ife an# his t7o gro7n u5 sons Constate an# Fe#eri$o%G

In *ar$h /,'H2 #uring the li4eration2 Fe#eri$o 4rought out the 0 4uses

he ha# De5t $lan#estinel. in Pi##ig an# the master me$hani$2 Fe#eri$o 7ho

ne+er ha# an. formal e#u$ation in automoti+e re5airing or the liDe2 7as a4le

to assem4le one 4us out of the 0 #ila5i#ate# 4uses into goo# running

$on#ition 7hi$h he himself #ro+e along its fran$hises routes from Laoag to*anila an# 4a$D% !hese t7o 4uses 4e$ame the nu$leus of the 4iggest

trans5ortation 4usiness 5l.ing 4et7een Laoag an# *anila to#a.%G

Fe#eri$o 7as the rst to intro#u$e air$on#itione# 4uses in the

5ro+in$e2 the rst to intro#u$e $omfort room in the air$on#itione# 4uses an#

no7 the Farias !rans5ortation 4usiness is the 4iggest trans5ortation

4usiness in Ilo$os Norte an# is manage# 4. the $hil#ren an# gran#$hil#ren%G

II4 'ission State.ent

• !o 5ro+i#e glo4all. $om5etiti+e ser+i$e to $ustomers2 5ro+i#ing a

$om5etiti+e e#ge in the Pro+in$ial Lan# !rans5ortation In#ustr. 7ith

the use of state of the art Buses2 Amenities an# Equi5ments for the

$on+enien$e an# $omfort of the $ustomers of Farias !ransit%

• !o 5ro+i#e 4etter an# faster mo#es of trans5ortation for the 5u4li$ at

the same time 4eing $ost frien#l.%

• !o trans5ort our $ustomers an# freight as fast an# as e6$ient as

5ossi4le%

II% Vision State.ent

• !o 4e$ome the PILLAR of 5u4li$ trans5ortation 4usiness in the

Phili55ines%



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• !o 4e the BACBONE for the a#+an$ement of tourism an# mo4ilit. of

the Fili5ino 5eo5le throughout the entire nation%

• !o 4e an A)OCA!E of e@$ellent ser+i$e2 so$iall. res5onsi4le of its

5assengers an# $ustomers

II 'anage.ent

!he management team is $om5ose# of the 4rothers an# sisters of the late

Fe#eri$o Farias an# his 7ife Reme#ios re.er Castro 7ho ha55ene# to 4e

the Ilo$os

Norte

go+ernor2 ma.or an# re5resentati+es of the #estination $it. of Laoag% From

the o5eration u5 to the nan$e 5osition2 farinas si4lings manage to taDe 5art

an# maDe their 5arentJs har#7orD 5ai# o:% Ro#olfo Farias 8Chief E@e$uti+e

O6$er92 Roger Farias 8Au#itor92 *i$hael Farias2 Che+.lle Farias 8Finan$e

*anager92 Ru#. Farias an# Ria Farias are the to5 management team of the

$om5an.2 the. are o5erating the $om5an. together 7ith their hus4an#s an#

7i+es an# 7ith their #es$en#ants 8Ri3alina Farinas Fa+i ; ?R *anager9%

Business Assess.ent

III1 'ission and Vision State.ent E7aluation

/% oes the statement #es$ri4e an ins5iring 5ur5ose that

a+oi#s


No *0+ So.e=8at *1+ Yes


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5la.ing to the selsh interests of the staDehol#ersK

0% oes the statement #es$ri4e the $om5an.Js res5onsi4ilit.

to its staDehol#ersK

&% oes the statement #ene a 4usiness #omain an# e@5lain

7h. it is attra$ti+eK

'% oes the statement #es$ri4e the strategi$ 5ositioning that

the $om5an. 5refers in a 7a. that hel5s to i#entif. the sort

of $om5etiti+e a#+antage it 7ill looD forK

H% oes the statement i#entif. the +alues that linD 7ith the

organi3ationJs 5ur5ose an# a$t as 4eliefs 7ith 7hi$h

em5lo.ees $an feel 5rou#K

(% o the +alues resonate 7ith an# reinfor$e the

organi3ationJs strateg.K

1% oes the statement #es$ri4e im5ortant 4eha+ior

stan#ar#s that ser+e as 4ea$ons of the strateg. an# the

+aluesK

% Are the 4eha+ior stan#ar#s #es$ri4e# in a 7a. that

ena4les in#i+i#ual em5lo.ees to u#ge 7hether the. are

4eha+ing $orre$tl.K

,% oes the statement gi+e a 5ortrait of the $om5an.

$a5turing the $ulture of the organi3ationK

/=% Is the statement eas. to rea#K

!otal S$ore 14S$ore Inter5retation

*ore than /H M E@$e5tional

/= ; /H M A+erage < !he $om5an. falls on this

4ra$Det%

Less than /=M Nee#s Im5ro+ement



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/% Ans7er YES% From its mission u5 to its +ision2 the $om5an. is #ire$te# to

its o4e$ti+e of gi+ing the ser+i$es for the saDe of its $ustomer% !he rst 5art

of its mission talDs a4out the $on+enien$e an# $omfort of its $ustomer 4utthe great thing is that the. 7ill e@e$ute it in $onne$tion 7ith the 5ro+ision of

gi+ing a $om5etiti+e e#ge in their $hosen $ourse of 4usiness% Further2

o4+iousl. the target of the $om5an. is for the 4etterment of the $ountr. as a

7hole%

0% Ans7er YES% All the three 4ullets in its mission2 the $om5an. 5ro+i#es its

staDehol#er their 7hat is ought to #oG thing in running its o5eration% !he.

maDe sure that 5rimaril.2 their #oing 4usiness for the saDe of its staDehol#er

mainl. for their 4enets from state of the art 4uses to the most $on+enient

tra+el e@5erien$e%

&% Ans7er Some7hat% You ma. #onJt see the #enition of 4usiness #omain in

the statement 4ut u5on #igesting the 7hole statements2 .ou $an $on$lu#e

that the 5ur5oses>goals themsel+es of $oming u5 an# running the 4usiness

are the reasons 7h. the $ustomers>5assengers 7oul# 7ant to taDe the

ser+i$es the $om5an. has to o:er% !hatJs 7h. the $om5an. #ire$te# the

statement maorit. for the saDe of its staDehol#ers%

'% Ans7er Yes% E@5li$itl. 7ise2 the $om5an. ha# mentione# the +er. 5ur5ose

of running its 4usiness an# 5rimaril. it is to ser+e the 5eo5le 7ith their

$om5etiti+e e#ge among an. other lan# trans5ortation $om5anies% )isi4le on

its rst 4ullet on its mission statement2 the $om5an. ma#e use of 7or#s liDe5ro+i#ing $om5etiti+e e#ge in the Pro+in$ial Lan# !rans5ortationG2 use of

state of the art Buses2 Amenities an# Equi5mentsG2 et$% An# all of these are

ser+e# for the $on+enien$e of its 5assenger themsel+es%

H% Ans7er Some7hat% !he. #o not e@5li$itl. 5ro+i#e it in their mission an#

+ision statement 4ut 7e $an im5lie#l. +ie7 these 7ith the 7or#ings liDe

so$iall. res5onsi4le of its 5assengersG2 trans5ort $ustomers an# freight as

e6$ient as 5ossi4leG2 4eing $ost frien#l.G2 et$% !hese are the 7or#s that

7oul# gi+e 5eo5le hints on the +alues that the $om5an. an# their 5eo5le areim4ue# 7ith an# 7ill ine$t to the min# of its $ustomers%

(% Ans7er Some7hat% It $an 4e im5lie# in the statement as a 7hole%

Although it is not a$tuall. ha+e a linDage2 the +alues $an 4e a gui#e to the

strateg. of the $om5an.%

1% Ans7er Some7hat% !he $om5an. ha# mentione# although not e@5li$itl.

that the strateg. an# +alues go 7ith the 4lue5rint2 essential enough in



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#ire$ting their 5eo5le to7ar#s their 5lan% It $an 4e +ie7e# on the rst 5art of

the mission statement 87hile the other t7o are more fo$use# 7ith the

intention of the $om5an.9 7here the. #is$usse# the ho7JsG of the $om5an.

in a$hie+ing its 5rimar. goal to 5ro+i#e state of the art ser+i$es%

% Ans7er Some7hat% !he ans7er is 5atterne# to num4er H question 7herein

the em5lo.ees are 4oun# 4. the +alues that are linD to the $om5an.Js

o4e$ti+e% -ith these2 the. $an assess themsel+es if there are 5ushing

themsel+es to their limit% An# if the. are $om5l.ing 7ith the $om5an.Js rules

an# +alues%

,% Ans7er Some7hat% Although it is not #ire$tl. sho7n2 7e $an +ie7 that the

$om5an. aims to gi+e us a glim5se of 7hat the. are u5 to an# 7hat is the

nature of their ser+i$es an# o5eration% !his 7e $an see in the +ision that

Fili5ino a#+an$ement $an 4e a$hie+e# through Fili5ino e:ort%

/=% Ans7er Yes% !he statement is o4+iousl. rea#a4le an# not ust that2 it

#oes not $ontain an. argon Din#s of 7or#s for an eas. un#erstan#ing though

some 5arts nee# to 4e im5lie#l. thought of #ue to its im5li$it #eli+er.%

III$ )inancial Assess.ent



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III$$)inancial Assess.ent

III$$1 Le7e,age ,atio



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#e:t to EFuit Ratio

e4t to Equit. RatioM 8!otal Lia4ilities > !otal Sharehol#erJs Equit.9

812/(H2=1'%1, > /=(2H&12/,(%'H9 M %=1

A ratio of / or // means that $re#itors an# sto$Dhol#ers equall. $ontri4ute to

the assets of the 4usiness% A less than / ratio in#i$ates that the 5ortion of

assets 5ro+i#e# 4. sto$Dhol#ers is greater than the 5ortion of assets 5ro+i#e#

4. $re#itors an# a greater than / ratio in#i$ates that the 5ortion of assets

5ro+i#e# 4. $re#itors is greater than the 5ortion of assets 5ro+i#e# 4.

sto$Dhol#ers% !his %=1 ratio is attra$ti+e to the e.es of $re#itors 84ut this

+aries from in#ustr. to in#ustr.9% Cre#itors usuall. liDe a lo7 #e4t to equit.

ratio 4e$ause a lo7 ratio 8less than /9 is the in#i$ation of greater 5rote$tion

to their mone.% But sto$Dhol#ers liDe to get 4enet from the fun#s 5ro+i#e#

4. the $re#itors therefore the. 7oul# liDe a high #e4t to equit. ratio%

#e:t to Asset Ratio

e4t to Asset Ratio M 8!otal Lia4ilities > !otal Assets9

812/(H2=1'%1, > //&21=0201/%0'9 M %=(

!otal #e4t to total assets is a le+erage ratio that #enes the total

amount of #e4t relati+e to assets% In this $om5an. s$enario2 the #e4t to total

assets ratio tells .ou that ( of the $or5orations assets are nan$e# 4. the

$re#itors or #e4t 8an# therefore ,' is nan$e# 4. the o7ners9% A lo7er

5er$entage in#i$ates lesser le+erage an# lesser risD an# +i$e +ersa% LiDe all

other ratios2 the tren# of the total #e4t to total assets shoul# also 4e

e+aluate# o+er time% !his 7ill hel5 assess 7hether the $om5an.Js nan$ial

risD 5role is im5ro+ing or #eteriorating%

III$$$ LiFuidit ,atio



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Cu,,ent Ratio

Current Ratio M 8Current Assets > Current Lia4ilities9

4ase# on 0=/0 nan$ial 5osition 8latest 5ossi4le

4asis9

802'=20,=%0' > ',2'=%/H9 M H1%(

!he $urrent ratio of Farias transit is H1%( 4ase# on 0=/0 #ata 7hi$h im5lies

a 5ositi+e out$ome 4e$ause it means that the liqui#ation of all of a

$om5an.s $urrent assets to meet all of its $urrent lia4ilities is highl. 5ossi4le%

But 7e shoul# also ha+e to looD for the $om5an. in a going $on$ern manner5rin$i5le of a$$ounting% Its the time it taDes to $on+ert a $om5an.s 7orDing

$a5ital assets into $ash to 5a. its $urrent o4ligations that is the De. to its

liqui#it.% In a 7or#2 the $urrent ratio $an 4e also Qmislea#ingQ if not seen

thoroughl.% In this $ase2 e+er.thing is ne sin$e the $om5an. has onl. fe7

sour$es of its $urrent lia4ilities in$lusi+e of ta@ 5a.a4le%

Acid test Ratio G 2uic< Ratio

ui$D Ratio M 8Cash Cash Equi+alents T Shortterm In+estment TA$$ounts Re$ei+a4le9

Current Lia4ilities

4ase# on 0=/0 nan$ial 5osition 8latest 5ossi4le 4asis9

8002112',=%0' > ',2'=%/H9 M 'H%10

!he 4asi$s an# use of this ratio are similar to the $urrent ratio in that it gi+es

users an i#ea of the a4ilit. of a $om5an. to meet its shortterm lia4ilities 7ith

its shortterm assets% Plus the i#ea of remo+ing those items 7hi$h $oul# not

generate $ash easil. an# ma. 4e in the form of in+entor.2 sin$e the $urrent

ratio is insigni$antl. higher than that of the qui$D ratio2 it 7oul# onl. mean

that the $om5an. is not mu$h #e5en#ent on its in+entor.2 the fa$t2 that the

$om5an. is a transit $om5an. o:ering trans5ortation ser+i$e2 it is trul.

o4+ious that $urrent an# qui$D ratio .iel#s 7ith a not so mu$h of high



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+arian$e% It #oes not nee# to sto$D large quantit. of in+entories in the rst

5la$e%

III$$5 (,o@ta:ilit Ratio

!,oss 'a,gin

"*M 8"ross Prot > Net Re+enue9 @ /==

Sales an# Re+enue $an 4e use# inter$hangea4l.

8//2,,,2&0H%' > H=2(''2=,%'9 @ /== M 0&%(,

"ross margin tells .ou a4out the 5rota4ilit. of .our goo#s an# ser+i$es% It

tells .ou ho7 mu$h it $osts .ou to 5ro#u$e the 5ro#u$t or to ren#er ser+i$es%

In this $ase2 for e+er. 5eso in trans5ortation re+enue2 .ou earne# a4out 0'

$ents 8roun#e# u59 in 5rot 4ut s5ent a4out 1( $ents to maDe it% "oo# for the

$om5an. sin$e the. are alrea#. earning more than onefourth of the

$om5an.Js total $ost sin$e 0'$ents>1($ents is a4out &/%H%

O/e,ating 'a,gin

O* M 8O5erating Prot > Net Re+enue9 @ /==

Sales an# Re+enue $an 4e use# inter$hangea4l.

8(21(2=='%(= > H=2(''2=,%'9 @ /== M /&%&(

O5erating margin taDes into a$$ount the $osts of 5ro#u$ing the 5ro#u$t orser+i$es that are unrelate# to the #ire$t 5ro#u$tion of the 5ro#u$t or ser+i$es2

su$h as o+erhea# an# a#ministrati+e e@5enses% Out of e+er. 5eso .ou ma#e

in re+enue2 .ou s5ent a4out /& $ents in e@5enses unrelate# to the #ire$t

ser+i$es of Farinas transit% Relati+el. fa+ora4le to the $om5an. sin$e it $osts

them mu$h lesser $enta+os to unrelate# ser+i$es $om5are# to gross margin



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5er$entage sin$e /&$ents>1($ents is onl. a4out /1%/ of $ost an# almost half

of earnings%

Retu,n on Asset

ROA M 8Net In$ome > Assets9 @ /==

8('2H'%11 > //&21=0201/%0'9 @ /== M %H1

Return on Assets sim5l. measures ho7 e:e$ti+el. the $om5an. 5ro#u$es

in$ome from its assets% !his s$enario onl. means that .ou generate %H1 $ents

of in$ome for e+er. 5eso .our $om5an. hol#s in assets% It is quite

unattra$ti+e in the e.es of the management as 7ell as in the e.es of the

in+estors sin$e there is a relati+el. lo7 return on assets 4e$ause it $an 4e a

5ossi4le in#i$ation of 5oor $or5orate health% A future falling ROA is a sure sign

of trou4le aroun# the $orner2 es5e$iall. for gro7th $om5anies% Stri+ing for

sales gro7th often means maor u5front in+estments in assets2 in$lu#ing

a$$ounts re$ei+a4les2 in+entories2 5ro#u$tion equi5ment an# fa$ilities% A

#e$line in #eman# $an lea+e an organi3ation high an# #r.2 an# o+erin+este#

in assets it $annot sell to 5a. its 4ills% !he result $an 4e nan$ial #isaster%

Retu,n on EFuit

ROE M 8Net in$ome > A+erage Sto$Dhol#erJs Equit.9

8('2H'%11 > /=(20/021(,%=(H9 M %==( or %(

!he 8ig8e, o, lo=e, ,etu,n on eFuit doesn9t necessa,il .ean

t8at t8e :ette, o, /oo,e, t8e co./an /e,fo,.ance is3 fo, a ce,tain

:,ac


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o+erall marDet $om5arisons are a55ro5riate ho7e+er2 it shoul# 4e

re$ogni3e# that there are +ariations in ROEs among some t.5es of

4usinesses% In general2 nan$ial anal.sts $onsi#er return on equit. ratios in

the /H0= range as re5resenting attra$ti+e le+els of in+estment qualit.%

-hile highl. regar#e# as a 5rota4ilit. in#i$ator2 the ROE metri$ #oes ha+e a

re$ogni3e# 7eaDness% In+estors nee# to 4e a7are that a #is5ro5ortionate

amount of #e4t in a $om5an.s $a5ital stru$ture 7oul# translate into a

smaller equit. 4ase% In this $ase2 the $om5an. is earning a lo7 5er$entage on

its equit. thus ma. n# 7a.s to im5ro+e its o5eration%

III5 S"OT Analsis

III51 St,engt8s

Lo= nu.:e, of :us accident is .ino, st,engt8 of )a,i-as "it8

good .aintenance and ,e/ai,s of :uses and 8ig8l s


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trust the Farias !ransit% It starte# /,'/2 for 1& .ears the $om5an. has

esta4lishe# its name in the 5u4li$ trans5ortation in#ustr.%

Lo= e./loee tu,no7e, is a minor strength of Farias !ransit%

?a+ing a lo7 em5lo.ee turno+er means Farias em5lo.ees are ha55. an#

lo.al to the $om5an.% Lo7 turno+er maDes it easier for the $om5an. to fo$us

on its 4usiness at han# than hiring an# a#a5ting to ne7 sta:%

III5$ "ea


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T8e negati7e /e,centage g,o=t8 in /,o@ts incu,,ed f,o. $010

to $01$ is maor 7eaDness% !his reWe$ts that the $om5an. #i# not maDe a

5rot for & .ears% !he De. strategi$ management issues i#entie# are the

negati+e $om5oun#e# 5er$entage gro7th in 5rots for the 5ast & .ears

4e$ause of high o5erating e@5ense an# the la$D of marDeting resear$h an#

strateg. of the rm 4e$ause of not ha+ing a marDeting o6$er%

III55 O//o,tunities

Const,uction of e?/,ess=a connecting No,t8 LuJon

E?/,ess=a *NLEK+ and Sout8 LuJon E?/,ess=a *SLEK+ ; 5assengers

from southern 5art of the $ountr. tra+elling to northern 5art 8in this $ase is

Ilo$os9 7ill no7 ha+e a $on+enient tri5 4e$ause sto5 an# goG tri5 7ill not 4e

a 5ro4lem an.more% In$on+enien$e 7ill 4e eliminate# the fa$t that the

5assengers 7ill 4e 4enete# from ha+ing 0 tri5s an# 7ill no7 4e sli$e##o7n

to one straight tri5%

Int,oduction of ,ene=a:le ene,g sou,ces ; the $om5an. 7ill no7

ha+e an alternati+e on 7hether to 5ur$hase $ru#e oil or en#e# u5 7ith

a$quiring su4stitute to it%

#ec,easing =o,ld c,ude oil /,ices ; the $ountr. 7ill 4e

e@5erien$ing an e$onomi$ #e+elo5ment in terms on 5ri$e of $ru#e oil

4e$ause the 7orl# is seeing an o55ortunit. in 5ri$e $ut #o7n on this

ne$essit.% !he $om5an. 7ill get 4enets from this as 7ell as the 5assengers

4e$ause the $om5an. might lo7er #o7n the fare #e5en#ing on their sa+ings

from the sai# 5ri$e $ut #o7n%

III54 T8,eats

!hreat of su4stitutes ; San *iguel Cor5oration 7ill 4e 5ro5osing to thePhili55ine go+ernment of 4uil#ing a 4ullet train s.stem $onne$ting Laoag Cit.

in the northern 5art of Lu3on islan#2 5assing through *anila2 an# nall.

en#ing in the Bi$ol Region in Southeastern Lu3on%!he intro#u$tion of this

4ullet train s.stem that 7ill $o+er the entire north an# south 7ill greatl.

a:e$t the o5eration of Farias transit sin$e there 7ill no7 4e a su4stitute in

tra+elling to Laoag%



19/40

Page 1 of 40


Asean Integration 0=/H -hile turning the ASEAN region into a Qsingle

marDet an# 5ro#u$tion 4aseQ 7ill 4ring more 4usiness an# em5lo.ment

o55ortunities into our 5late 8in this $ase2 more 4us $om5an. 7ill soon arise

an# 7ill 4ring threat not onl. to the $om5an. for ha+ing mu$h more

$om5etitors 4ut also to the $ountr. as a 7hole 4e$ause of 5ossi4le in$rease

rate of smoDe emission9an# e+en gi+e us e$onomi$ le+erages in the 7orl#

marDetthis also $omes 7ith su4stantial threats to our outsour$ing in#ustr.s

stea#fast gro7th o+er the 5ast fe7 .ears% -ith looming ASEAN integration 4.

0=/H2 the Phili55ines ma. 4e staring at the $om5etition e.e to e.e as our

AsiaPa$i$ neigh4ors tr. to $ut a 4ig $hunD o: our o:shore o5erations an#

outsour$ing ser+i$es in the highl. $om5etiti+e free marDet% -ith these2 there

is a 5ossi4ilit. that the neigh4oring $ountries 7ill ine$t trans5ortation

ser+i$es sin$e there is alrea#. an e@isting mainstream that other ASEAN

$ountries liDe China2 *ala.sia an# Va5an ha+e a mu$h higher te$hnolog. than

that of our $ountr. has to o:er%

III% E?te,nal Analsis

III%1 (olitical > Legal Seg.ent

Citra Central E@5ress7a. Presi#ent Benigno Aquino III ga+e the green light toCitra Central E@5ress7a. Cor5oration to 4egin $onstru$ting the P0(%H4illion

e@5ress7a. to $onne$t the North Lu3on E@5ress7a. 8NLEX9 an# South Lu3on

E@5ress7a. 8SLEX9% Asi#e from this ne7 [email protected] the O!C is also

5ursuing the $onstru$tion of the !arla$ to La Union E@5ress7a. 8!PLEX9 an#

the 7i#ening an# im5ro+ement of the Batangas e@5ress7a. 8S!AR92 A4a.a

sai#%/

Rele+an$e

Constru$tion 7ill start in the se$on# quarter of 0=/' an# is e@5e$te# to

4e nishe# in three .ears% In 0=/(2 this 7ill 4e an o55ortunit. for Farias

!ransit to e@5an# their ser+i$es in the Southern 5ro+in$es% !he alternati+e

/ htt5>>777%gmanet7orD%$om>ne7s>stor.>&0'H=>e$onom.>4usiness>5ala$e

a55ro+es50(H4sD.7a.$onne$tingnle@an#sle@r



20/40

Page $0 of 40


route of !arla$ to La Union E@5ress7a. 8!PLEX9 is an o55ortunit. 4e$ause it

7ill maDe the trans5ortation faster from *anila to Ilo$os%

Bullet train s.stem > *oth4alle# North rail 5roe$t

Al+ara#o sai# the RC 7oul# either 5ush for the 4ullet train s.stem or

re+i+e the moth4alle# Northrail 5roe$t that 7oul# linD *etro *anila to the

ClarD international air5ort in Pam5anga% ?e sai# the 5ro5ose# 4ullet train

s.stem 7oul# 4oost the e$onom. of Central Lu3on2 5arti$ularl. in the

5ro+in$es of Pam5anga2 Bula$an2 am4ales2 Bataan2 Nue+a E$ia2 !arla$ an#

Aurora%

!he 5ro5ose# rail7a. 7ill $o+er the entire north an# south net7orDs of

the Phili55ine National Rail7a.s 8PNR9% !he north net7orD runs from *anila to

La Union2 in$lu#ing a line from !arla$ to San Vose2 Nue+a E$ia2 an# a 5ossi4le

e@tension to Caga.an% !he south net7orD tra+erses from *anila to Legas5i

Cit.2 in$lu#ing a line from Calam4a to Batangas Cit.%0

Rele+an$e

!he 5ro5ose# 4ullet train s.stem 7ill 4e a threat for Farias !ransit 4e$ause4ullet train s.stem $an 4e an alternati+e an# faster 7a. of trans5ortation

therefore there is a lo7 s7it$hing $ost from 4us trans5ortation to 4ullet train

trans5ortation%

!he 5ro5osal $onstru$tion of rail7a. that 7ill $o+er the entire north

an# south net7orDs of the Phili55ine National Rail7a.s 8PNR9 7ill 4e a threat

for Farias !ransit 4e$ause this $an 4e an alternati+e 7a. of trans5ortation

therefore there is a lo7 s7it$hing $ost from 4us trans5ortation to rail7a.

trans5ortation%

S5ee# Limiters an# "PS tra$Ding #e+i$es

0 htt5>>777%5hilstar%$om>hea#lines>0=/'>=/>=(>/01HH11>manila$larD4ullet

train5ushe#



21/40

Page $1 of 40


*ANILA2 Phili55ines Bus $om5anies shoul# 5ost heft. safet.

5erforman$e 4on#s 7ith the Lan# !rans5ortation Fran$hising an# Regulator.

Boar# 8L!FRB9 that 7oul# 4e forfeite# on$e its +ehi$le is in+ol+e# in a roa#

a$$i#ent%

!he 4on# shoul# at least 4e P& million or #ou4le the a$quisition $ost

of the 4us% If the #ri+er Dno7s that this 7oul# 4e forfeite# shoul# the 4us 4e

in+ol+e# in an a$$i#ent2 he 7oul# reall. 4e $areful in #ri+ing2G he sai#%

!olentino also su55orte# the 5ro5osal of the L!FRB to install s5ee#

limiters an# re$or#ers to limit the s5ee# of 5assenger 4uses an# re$or# the

e+ents 5rior to an a$$i#ent%&

Rele+an$e

!he 5ro5osal of 4on#s an# installing s5ee# limiters in 5u4li$ utilit.

4uses nation7i#e 7ill 4e a threat 4e$ause of the $ost that 7ill 4e 4ur#en 4.

4us $om5anies in$lu#ing Farias !ransit 7hi$h the. are not .et 5re5are# to

in$ur%

*an#ator. CC!)

!he man#ator. installation of $lose# $ir$uit tele+ision $ameras 8CC!)9

in 4uses has 4een 5ro5ose# at the ?ouse of Re5resentati+es%

Ca+ite Re5% El5i#io Bar3aga Vr% has urge# the Lan# !rans5ortation

Fran$hising an# Regulator. Boar# 8L!FRB9 to require 4us o5erators to install

CC!)s as 5art of the solution to the rising $rimes $ommitte# in these

+ehi$les%

& htt5>>777%5hilstar%$om>hea#lines>0=/&>/0>/,>/0(,11,>4on#s4us

$om5anies5ro5ose#



22/40

Page $$ of 40


Barga3a sai# the L!FRB shoul# follo7 7hat lo$al go+ernment units

ha+e 4een requiring 4usiness esta4lishments 4efore the. are issue# 4usiness

li$enses an# 5ermits%'

Rele+an$e

!he 5ro5osal man#ator. installation of $lose# $ir$uit tele+ision $ameras in

4uses 7ill 4e a threat for Farias !ransit if soon im5lemente#% As of e$em4er

0=/02 Farias !ransit has ( 4uses on ser+i$es therefore there 7ill 4e a great

e@5ense for Farias in installing CC!)% Failure to a$$om5lish the man#ator.

installment of CC!) 7ill a:e$t Farias 4e$ause the. 7ill ha+e 5ro4lems in

their 4usiness li$ense an# 5ermit that 7ill $ause #ela. in o5eration an# 5rot

loss%

III%$ Econo.ic Seg.ent

-orl# BanD Cru#e Oil2 Z>4arrel

A+g% s5ot 5ri$e 8Brent2 u4ai2 an# -!I9

!a4le /%/

0=/

0

0=/

&

0=/

'

0=/

H

0=/

(

0=/

1

0=/

0=/

,

0=0

=

0=0

H

Nominal

US

ollars

/=H%

=

/=H%

=

/=H%

1

/=0%

=

/==%

1

/==%

/

,,%( ,,%/ ,%1 ,1%=

Real 0==H

US

ollars

1%( ,,%0 ,1%1 ,&%0 ,=% ,%= 1%& H%( '%= 1(%0

Sour$e -orl# BanD Commo#it. Fore$ast Pri$e #ata2 O$to4er 0=/&

Figure /%/

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23/40

Page $5 of 40


$01$ $015 $014 $01% $01 $01 $01D $01 $0$0 $0$%

0

$0

40

0

D0

100

1$0

No.inal #olla,s Real US #olla,s

In O$to4er 0=/& !he -orl# BanD release# its Commo#it. Fore$ast2

7hi$h 5re#i$ts that 7orl# $ru#e oil 5ri$e 7ill #e$rease from Z/=H>4arrel in0=/0 to Z,%1>4arrel 4. 0=0=% A$$or#ing to Commo#it. Pri$e Fore$ast from

I*F2 s5ot a+erage 5ri$e for $ru#e oil 7ill #ro5 to Z(%1>4arrel 4. 0=/% H

Rele+an$e

!he ta4le a4o+e sho7s the fore$ast for $ru#e oil from 0=/0 to 0=0H% !he

fore$ast for $ru#e oil 5ri$e 7ill slo7l. #e$rease until 0=0H% !his 7ill 4e an

o55ortunit. for Farias !ransit 4e$ause lo7 5ri$e of $ru#e oil means lo7 5ri$e

of gasoline an# #iesel2 therefore the e@5ense of $om5an. for gasoline 7ill 4e

lessen%

"P2 InWation rate2 an# Pesoollar E@$hange rates fore$ast

For 0=/'2 the -orl# BanD e@5e$ts gro7th of (%H 5er$ent2 also lo7er

than its earlier fore$ast of (%1 5er$ent% !he go+ernment is aiming for a (%H

1%H 5er$ent gro7th this .ear%

In 0=/H2 "P gro7th is e@5e$te# to 5i$D u5 to 1%/ 5er$ent2 higher thanthe earlier fore$ast of (% 5er$ent2 the len#er sai#% B. 0=/(2 the Phili55ine

e$onom. 7ill gro7 (%H 5er$ent%(

H htt5>>Dnoema%$om>.@5t5a4>$ru#eoil5ri$esfore$astlongtermto0=0H

#ataan#$harts



24/40

Page $4 of 40


For the Phili55ines2 inWation is seen to settle at '%0 5er$ent in 0=/&2 &%

5er$ent ne@t .ear 4efore slo7ing #o7n to &%H 5er$ent for 4oth 0=/H an#

0=/(%

-e see $ontinue# a55re$iation of the 5eso% For this .ear2 it 7ill liDel. hit

&1%H= 8against the #ollar92 un#er5inne# 4. $ontinue# inWo7s in this 5art of

the 7orl#2G !an sai#% Peso#ollar e@$hange rate is fore$ast to rea$h &HZ/ in

0=/'2 '=Z/ in 0=/H an# '/Z/ in 0=/(%G1

Actual

Figure /%0

$01$ $015

0

1

$

5

4

%

D

!#( Ination

!a4le /%0

$01$ $015

!#( 1%& 8&9 1%= 8&9

Ination Rate &%= 8&9 '%/ 8&9

)o,ecast

( htt5>>777%interaDs.on%$om>4usiness>11(/>7orl#4anD$uts5hgro7th

fore$astfor0=/&0=/'ont.5hoonim5a$t

1 htt5>>777%5hilstar%$om>4usiness>0=/&>=0>=/>,=&&H(>a$hie+e%Hgro7th

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25/40

Page $% of 40


Figure /%&

$014 $01% $01C

0

1

$

5

4

%

C

A

D

!#( InLation

!a4le /%&

$014 $01% $01

!#( (%H 1%/ (%H

Ination Rate &% &%H &%H

Rele+an$e

!he fore$aste# gross #omesti$ 5ro#u$t an# inWation rate for 0=/' u5 to 0=/(

is a minor o55ortunit. for Farias !ransit% !he 5ositi+e rate of "P from 0=/'

to 0=/( an# #e$reasing inWation rate from 0=/' to 0=/( 7ill liDel. result to

in$rease 5rot in all in#ustries%

Actual

Figure /%'



26/40

Page $ of 40


$01$ $0150

10

$0

50

40

%0

(eso>#olla, E?c8ange Rate

!a4le /%'

$01$ $015

(eso> #olla,

E?c8ange Rate

'0Z/ '0Z/

Sour$e national statisti$s $oor#ination 4oar#

Figure /%H

$014 $01% $015$

55

54

5%

5

5

5D

5

40

41

4$

(eso>#olla, E?c8ange Rate

htt5>>777%ns$4%go+%5h>stats>5eso#ollar%as5



27/40

Page $ of 40


!a4le /%H

$014 $01% $01

(eso>#olla, E?c8angeRate

&HZ/ '=Z/ '/Z/

Rele+an$e

!he In$reasing +alue of #ollar against 5eso is a threat for Farinas !ransit

4e$ause 7hen the 5eso goes #o7n2 5ri$es of $ommo#ities go u5 es5e$iall.

5etroleum2 therefore the 5ri$e of 5etrol goes u5 an# the fare of 5u4li$

+ehi$les goes u5 as 7ell% !herefore a:e$ting the a+erage Fili5ino greatl. 7ho$annot a:or# the rise of 5u4li$ fares% In a##ition there 7oul# also 4e less

in$ome for the $om5an. an# therefore restraining their 4u#get%

III%5 Social Seg.ent

&' #eaths #ail. 4e$ause of roa# $rashes an# tra6$ $ongestion

*ANILA Ba# #ri+ing ha4its an# 5e#estrians 7ho #iso4e. tra6$ rules

are to 4lame for an estimate# &' 5eo5le 7ho #ie #ail. in the Phili55ines #ue

to roa# $rashes2 a former Lan# !rans5ortation O6$e $hief sai# !ues#a.%

QIf 7e looD at the statisti$s2 although it is s5ott.2 7e 5ut the #eath rate

at &' #eaths #ail. 4e$ause of roa# $rashes2 ust roa# $rashes% !hat in$lu#es

$ollisions2 run o+ers2 e+er.thing that in+ol+es roa# tra6$% !hats a4out /%0H

#eaths e+er. hour2Q he sai# in a *ornings [ANC inter+ie7%

?e also sai# he 7oul# groun# entire 4us Weets if an a$$i#ent results in

#eath% !o me2 one #eath is too man.2Q he sai#%,

, htt5>>777%a4s$4nne7s%$om>nation>/0>/1>/&>5h&'#eaths#ail.#ueroa#

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28/40

Page $D of 40


*anila2 Phili55ines ; !ra6$ in *etro *anila $auses the $ountr. to lose a

7ho55ing P/'= 4illion annuall.2 a gure that #7arfs the amounts lost +ia the

$ontro+ersial 5orD 4arrel s$am%

!he n#ings of these stu#ies are essentiall. the same% !he. 5eg the

losses #ue to tra6$ at a55ro@imatel. at P/'= 4illion2G lamente# "alagnara%

ire$t losses are attri4ute# to 7aste# gasoline2 lost la4or hours2

em5lo.ment of tra6$ ai#es2 an# 7aste# ele$tri$it. the in#ire$t losses refer

to 7ith#ra7al of 5otential foreign in+estments2 misse# 4usiness

o55ortunities2 an# re#u$e# $a5ital inWo72G he e@5laine#%/=

Rele+an$e

!he hea+. tra6$ in *etro *anila greatl. a:e$ts the in#ustr.% !he tra6$

$ongestion is one of the maor $auses of #eath an# roa# a$$i#ents% Also

hea+. tra6$ $auses tra+el time #ela.s2 in$reases fuel $ost2 an# in$reases air

5ollution an# $ar4on #io@i#e emissions 7hi$h ma. $ontri4ute to glo4al

7arming%

III%4 Tec8nological Seg.ent

!rans5ort A55

e5artment of !rans5ort an# Communi$ation in 5artnershi5 7ith the

*etro *anila e+elo5ment Authorit. an# Ce4u Cit. "o+ernment2 7ill host

the rst national trans5ort a55 #e+elo5ment $om5etition% -e4"eeD is

5resent an# a$ti+el. 5arti$i5ating in this e+ent% E+er.one is in+ite# an#

$on+ene# to #e+elo5 a55li$ation 4ase# on t7o ne7 Din#s of o5en #ata rst is

ma#e 5u4li$l. a+aila4le 4. the agen$ies an# se$on# is $on$erning lo$ationan# ser+i$e information as 7ell as tra6$ in$i#ent streams in *anila an# Ce4u

Cit.% B. a &month #e+elo5ment 5erio# 5arti$i5ants 7ill 7orD 7ith +olunteer

mentors to 4uil# inno+ati+e solutions for the trans5ortation $hallenges%//

/= htt5>>777%m4%$om%5h>metromanilatra6$$osts5/'=4a.ear>



29/40

Page $ of 40


!he role of transit a55s is to 5ro+i#e realtime information as to 7hen

4uses 7ill arri+e at a 5arti$ular sto5% !ransit a55s are a4le to #o this 4.

a$$essing realtime 4us lo$ation information%G -hile the term Qtransit a55Q

refers to an a55li$ation a+aila4le for a smart 5hone2 5arti$ularl. either the

A55le iOS or the An#roi# 5latforms2 most transit a55s are also a+aila4le on a

$om5uter2 so e+en if .ou are stu$D in the 5hone Q#arD agesQ .ou $an use

them to 5lan a 5erfe$t e@it from .our home or 7orD5la$e%G/0

Rele+an$e

As to go+ernment tr.ing to #e+elo5 transit a55 that 7ill 5ro+i#e real time

#ata for $iti3en2 this $oul# 4e an o55ortunit. for Farias !ransit to a55l. it in

its o5eration% Integrating this Din# of te$hnolog. 7ill surel. 5ro+i#e 4etter

ser+i$e an# 7ill attra$t $ustomers%

"PS tra$Ding s.stem

-ith to#a.Js in$rease# fuel $osts an# tight 4u#gets at all go+ernmental

le+els2 4us $om5anies are un#er 5ressure to 5erform 7ith fe7er resour$es%

Lu$Dil.2 te$hnolog. is maDing it easier% One of the most e:e$ti+e 7a.s for a

+ehi$le4ase# organi3ation to sta. u5 an# running an# $om5etiti+e is 4.

im5lementing "PS4ase# tra$Ding2 a+aila4le in a +ariet. of soft7are 5latforms

from numerous +en#ors% Almost e+er.thing monitore# 4. "PS +ehi$le

tra$Ding $an 7orD to hel5 4ring #o7n fuel e@5en#itures for an organi3ation%

For e@am5le2 s5ee#ing is a huge fa$tor in high fuel usage% A "PS tra$Ding

solution $an 5ro+i#e s5ee# information an# sen# alerts 7hen a +ehi$le

e@$ee#s the s5ee# limit%

E@$essi+e i#ling $an also $ontri4ute to high fuel $osts% A "PS Weettra$Ding s.stem $an hel5 re#u$e i#ling times 4. alerting the user 7hene+er a

+ehi$le i#les longer than a 5reset #uration% B. using the tools in "PS Weet

// htt5>>7e4geeD%5h>#ot$5hili55inetransita55$hallenge>

/0 htt5>>5u4li$trans5ort%a4out%$om>o#>!ransit\!e$hnolog.>a>!ransitA55s%htm



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Page 50 of 40


tra$Ding2 a 4us $om5an. $an $ertainl. ser+e its $lients 4etter% "etting re5orts

of a +ehi$leJs route $an hel5 the user tra$D arri+als an# #e5artures% B.

5ro+i#ing a$$urate an# +eria4le 5roof of ser+i$es2 itJs a +alua4le tool for

re+ie7ing routes an# frequen$. of sto5s2 7hi$h $an hel5 a $om5an.

streamline o5erations an# run more e6$ientl.%/&

"PS tra$Ding also #eli+ers a$$urate2 u5to#ate ma55ing 7ith tra6$

$on#itions% Some "PS solutions ha+e 5artnere# 7ith truste# resour$es su$h

as "oogle *a5s2 7hi$h 5ro+i#es 3oom $a5a4ilities all the 7a. #o7n to street

le+el% is5at$hers $an use this information to a#ust routes if ne$essar.2 hel5

#ri+ers a+oi# #ela.s or maDe lastminute $hanges to ser+i$e%

"PS Weet tra$Ding $an also hel5 im5ro+e se$urit. an# safet. for #ri+ers

an# 5assengers aliDe% E@am5le a 4us go missing for 7hate+er reason2 "PS

$an hel5 a $om5an. re$o+er it an# an. on 4oar# equi5ment qui$Dl.% Some

s.stems e+en o:er features that sen# an alert if a +ehi$le is use# #uring o:

hours% If the 4us goes o: its route at an. time2 the s.stem 7ill Dno7% An# in

the unliDel. 4ut not un#o$umente# e+ent that a 4us has 4een stolen2 there

isnJt a faster 7a. to tra$D it #o7n%/'

Rele+an$e

Integrating "PS tra$Ding s.stem 7oul# in$rease se$urit. an# safet.2

re#u$e fuel $osts2 an# im5ro+e $ustomer ser+i$e% !his $oul# 4e an

o55ortunit. for Farias !ransit to 5ro+i#e 4etter ser+i$e an# attra$t

$ustomers%

?.4ri# 4us

?.4ri# 4us te$hnolog. is similar to that use# in h.4ri# $ars an# tru$Ds2 7ith

/& htt5>>777%masstransitmag%$om>arti$le>/='H&0H,>g5smonitoringDee5s

4usesontra$DK5ageM/

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31/40

Page 51 of 40


o5tions for 4oth 5arallel an# series #ri+e train #esigns% !hese 4uses em5lo.

similar te$hnolog. in$lu#ing regenerati+e 4raDing2 ele$tri$ motors2 an#

4atter. storage% One main #i:eren$e is that most h.4ri# 4uses are $ou5ling

#ieselfuelle# engines 7ith ele$tri$ motors instea# of the t.5i$al gasoline

ele$tri$ h.4ri# $ongurations a+aila4le in light #ut. +ehi$les% *a@imi3ing the

4enets from these 4uses requires o5timi3ing the h.4ri# s.stem for the

transit 4us routes2 7hi$h might 4e a:e$te# 4. the terrain the 4us tra+els or

7hether the 4us frequentl. tra+els at free7a. s5ee#s or sta.s on $it. streets%

?.4ri# #iesel ele$tri$ 4uses are a+aila4le2 an# these $an o:er lo7 or

3ero lo$al air 5ollutant that 7oul# 4enet the E$ologi$al $risis that is in air

5ollution that $ontri4ute# greatl. in "lo4al -arming% Also the noise emission

that a h.4ri# +ehi$le $oul# release is e@tremel. lo7 7hen o5erate# in ele$tri$

mo#e% ?.4ri# 4uses2 using an on4oar# 4atter. together 7ith a #iesel engine2

o:er emissions 4enets2 es5e$iall. 7hen o5erating in ur4an areas on 4atter.

5o7er2 7ith regenerati+e 4raDing% /H

Rele+an$e

As of Vanuar. 0=/'2 the h.4ri# 4us in the Phili55ines is onl. a+aila4le in

*aDati Cit.%/( !he tren# of ?.4ri# trans5ortation is not .et a#o5te# 4.

5ro+in$ial 4us line o5erators 4e$ause of high $ost for using that te$hnolog.

an# itJs more a#+isa4le to use it in a short #istan$e tra+el% Another thing to

$onsi#er is the lo$ation an# 4uil#ing of $harging station for h.4ri# 4uses%

!ime 7ill tell ho7 far manufa$turers $an go to im5ro+e emissions an# to

#e+elo5 h.4ri# transit 4uses in long #istan$e tra+el2 7hile lo7ering the

o+erall $ost of the 4uses 7hi$h 7oul# attra$t in+estors greatl. therefore

$reating an o55ortunit.%

/H htt5>>ar$hi+e%is>1u$0

/( htt5>>777%m4%$om%5h>[email protected]#4uses5l.maDati$it.>


http://www.hybridcenter.org/hybrid-center-how-hybrid-cars-work-under-the-hood-2.htmlhttp://www.hybridcenter.org/hybrid-center-how-hybrid-cars-work-under-the-hood-2.html


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III%% En7i,on.ental Seg.ent

Senate Bill no% /(' intro#u$e# 4. Senator !rillanes I)2 entitle# Ele$tri$2

?.4ri# an# Other Alternati+e Fuel )ehi$les In$enti+es A$t of 0=/&% ItJs an a$t

5ro+i#ing in$enti+es for the manufa$ture2 assem4l.2 $on+ersion an#

Im5ortation of ele$tri$2 h.4ri# an# other alternati+e fuel +ehi$les2 for other

5ur5oses%G/1

!he Senate 4ill no% /(' 7ill grant s$al an# nons$al in$enti+es for the

im5ortation an# manufa$ture of ele$tri$2 h.4ri# an# other +ehi$les that use

alternati+e sour$es of energ. su$h as2 4ut not limite# to2 solar2 7in#2

h.#rogen fuel $ell2 $om5resse# natural gas or liquee# natural gas2 methane

an# liquee# 5etroleum gas% *anufa$turers an# assem4lers 7ill 4e e@em5te#

from 5a.ing an# #uties2 as 7ell as +aluea##e# ta@ for 5ur$hase an#

im5ortation of ra7 materials2 s5are 5arts2 $om5onents an# $a5ital equi5ment

use# in the manufa$ture or assem4l. of AF)s for nine .ears% /

Rele+an$e

!his 4ill 7ill 5romote the 7i#es5rea# use of h.4ri# an# +ehi$les using

alternati+e fuels in the $ountr. in or#er to 5rote$t the en+ironment an#re#u$e the e:e$t of glo4al 7arming% !his senate 4ill 7ill someho7 re#u$e the

5ro4lem of manufa$turers in terms of $ost in im5orting an# 5ro#u$ing h.4ri#

+ehi$les% !his 7ill onl. $reate an o55ortunit. for Farias !ransit if the 5ri$es of

h.4ri# +ehi$les 7ill 4e a:or#a4le an# the 5ro4lem in $harging station 7ill 4e

resol+e#%

Senate Bill no%0(2 intro#u$e# 4. Senator Pia Ca.etano entitle#

QSustaina4le !rans5ortation A$t of 0=/&G% ItJs an a$t 5romoting sustaina4le

an# alternati+e mo#es of trans5ortation an# other mo4ilit. o55ortunit. to

/1 htt5>>senate%go+%5h>lis#ata>/H,,=/&001]%5#f

/ htt5>>gote$ote$h%$om>5hili55inesenatea55ro+ealternati+efuel+ehi$le

a$t>



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im5ro+e air qualit.2 in$rease e6$ien$.2 re#u$e $ongestion an# $ontri4ute to

5ositi+e health im5a$ts in our so$iet.%G/,

!he 5ur5ose of Sustaina4le !rans5ortation A$t of 0=/&G is to #e+elo5sustaina4le an# alternati+e mo#es of trans5ortation so as to re#u$e

greenhouse gas emissions2 manage energ. $onsum5tion2 use 5re$ious ur4an

areas e6$ientl.2 re#u$e time an# tra+el $osts2 as 7ell as 5romote an a$ti+e

lifest.le% !he 4ill man#ates the e5artment of !rans5ortation an#

Communi$ations 8O!C9 an# the National E$onomi$ e+elo5ment Authorit.

8NEA9 to $ome u5 7ith a sustaina4le trans5ort a$tion 5lan that 7oul#

a$hie+e a mo#e shift targetG o+er a 5erio# of time% !he 4ill in$lu#es the

5ro+ision of a#equate 7alD7a.s that allo7 safe 5e#estrian 5assage% !he 4illalso in$lu#es the #esignation of 4iDe lanes2 an# esta4lishment of 4i$.$le

5arDing s5a$es an# 4iDe ra$Ds2 to 5romote 4i$.$le use% SB No% 0( also

re$ogni3es the fa$t that rail trans5ort s.stems are sometime too e@5ensi+e

an# 7ill taDe some time to $onstru$t% Be$ause of this2 the 4ill re$ommen#s

the $ommissioning of Bus Ra5i# !ransit 8BR!9 s.stems 7herein se$tions of

roa#s 4e #esignate# e@$lusi+el. for 4uses that 7oul# o5erate liDe trains%0=

Rele+an$e

!he SB No% 0( 7ill hel5 re#u$e the #ail. tra6$ am2 the smog2 an#

other air 5ollutants 5ro#u$e# 4. +ehi$les% !he 5ro5ose# Bus !ransit S.stem

8BR!9 7ill 4e an o55ortunit. for Farias to ha+e a safe an# se$ure 5u4li$

trans5ort s.stem%

IV St,ategic Conclusion

/, htt5>>senate%go+%5h>lis#ata>/H&'/&=10]%5#f

0= htt5>>777%thelo44.ist%4i3>$ongressne7s>item>0&=sustaina4lemass

trans5ortseenassolutionto$ountr.E0=,,stra6$7oes



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V St,ategic Reco..endation

V1'a,


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!he follo7ing are the 5ossi4le marDeting strategies that Farias !ransit ma.

e@e$ute Printe# *aterials2 Bran#ing of the S.stem2 Bus Sto5s2 Signage an#

Fa$ilities Coor#inate# *arDeting%

(,inted 'ate,ials

FariasJs route4.route ma5s are goo#% !he. are #ra7n to s$ale2

in$lu#e sto5 lo$ations an# highlight maor time 5oints an# #estinations%

Although the. are 5re5are# in $olor an# are a+aila4le in $olor online an# on

4us sto5 signs2 the. are 5rinte# an# #istri4ute# to the 5u4li$ in 4la$D an#

7hite in the quarterl. ?ea#7a.s 5u4li$ation% Route ma5s $oul# 4e enhan$e#

7ith the in$lusion of more lan#marDs2 a##itional street names 8for some

minor $ross streets92 lo$ations of !)*s an# other resour$es2 an# 4. im5ro+ing

the +isi4ilit. of sto5 lo$ations 8#ots9 on the routes2 7hi$h maDe it #i6$ult to

#is$ern 7hether the #ot referen$es an in4oun# or out4oun# sto52 or 4oth%

FariasJ s.stem 7i#e ma5 $oul# 4e more useful% In most $ommunities2 the

s.stem 7i#e ma5 is one of the most im5ortant tools for un#erstan#ing ho7

the routes 7orD together to allo7 someone to tra+el from origin to

#estination%

B,anding t8e Sste.3 Bus sto/s3 Signage3 )acilities

Farias 4ran# i#entit. is their o55ortunit. to 5osition the $om5an. an#

ser+i$e to their i#eal $ustomer or $lient% From the logo to their 7e4 site an#

en$om5assing 5rint 7orD as 7ell2 the 4ran# i#entit. gets 4uilt 5ie$e 4. 5ie$e%

!his is the most im5ortant $om5onent of $reating the $om5an.Js gra5hi$

looD% A strong logo is a memora4le marD that reWe$ts the 5ersonalit. of the

$om5an. this is also a55li$a4le in terms of mo#if.ing the o+erall looD of the

4us sto5s2 signage an# its fa$ilities% An# 7e $anJt o+erstate ho7 $riti$al it is to

get it right% !hus2 the $om5an. shoul# thinD of the most remarDa4le 7a. of

im5osing an# $reating an outstan#ing 4ran#ing s.stem 7hi$h $oul# lea#

them to out7it an# out5la. their $om5etitors in terms of marDeting

themsel+es%



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Coo,dinated 'a,


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Page 5 of 40


an# $ontinue 7ith the o5eration% !o a+oi# $ir$umstan$es liDe this2 the

$om5an. shoul# ha+e or#inar. 4uses for those 5eo5le 7ho felt unease in

ri#ing air$on#itione# 4us to se5arate them to those 7ho 7ant to 4e in air

$on#itione# ones%

V5 )inance and Accounting

!he $om5an. must ine$t more 4uses in the 4usiness to $ater an

in$reasing #eman# of its $ustomers es5e$iall. #uring holi#a. seasons an#

most 5ro4a4l. it 7oul# $ost them mu$h gi+en their lo7 rate of return on its

assets an# equit. #uring its $urrent o5eration2 4ut the goo# thing here is that

the $a5a$it. to $ater 5assengers 7ill 4e stret$he# out an# in the near future2the $ost 7ill 4e re$o+ere# then% *oreo+er2 7aiting time for the $ustomers to

4e a$$ommo#ate# gi+en these a##itional 4uses 7oul# no7 4e re#u$e# to

e+en half #e5en#ing on the num4er of a##itional 4uses an# other fa$tors 7ill

soon follo7 su$h as o55ortunit. $ost that $oul# ha+e forgone if the

5assengers 7onJt 4e a$$ommo#ate# 4e$ause of lesser 4uses%

V4 Resea,c8 and #e7elo/.ent

Sin$e the $om5an. has alrea#. rea$h half7a. its o4e$ti+e in terms of

#e+elo5ment 4e$ause of its 7i on 4oar#2 $omfort room insi#e the 4uses an#

s5a$ious #elu@e t.5e 4uses2 the onl. thing that the $om5an. is la$Ding in all

of its 4uses is high te$hnolog. monitoring2 CC!)Js are onl. installe# in its

o6$e as 7ell as in 7aiting areas in front of it an# so in or#er for them to 4e

sure that e+er. 5assengerJs safet. is lo$D an# sto$DG2 the. shall 4e installing

also $ameras insi#e their 4uses% Installation of CCTV ca.e,as in all

:uses the $om5an. 7oul# not 7ant to re$ei+e an. +iolent rea$tions $omingfrom their $ustomers 7hether 4e$ause of the fault on their 5art or on the 5art

of the $ustomers an# 7ith other $ustomers su$h as theft2 4ra7l2 negligen$e

et$% Letting them Dno7 that there are installe# CC!) $ameras 7oul# inhi4it

them from #oing su$h a$tions 4e$ause 5roof 7ill 4e 5ro+i#e# ha+ing installe#

these $ameras on ea$h 4us% Further2 the $om5an. $an no7 monitor the 4us

for maintenan$e an# lo$ating 5ur5oses%



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V% 6u.an Resou,ces

Beco.ing )a.il f,iendl sin$e the $om5an. has lo7 em5lo.eeturno+er2 the onl. thing that ?uman Resour$e manager has to #o 7ith it is to

8/9 maintain this Din# of 7orD en+ironment an# 809 the. shoul# engage in

goo# times% Firstl.2 4eing famil. frien#l.G means that .our $om5an.Js

s$he#uling an# general o5erating 5oli$ies taDe into reasona4le a$$ount the

5ersonal nee#s of the em5lo.ees ; in 5arti$ular their #esire to 4alan$e o4

res5onsi4ilities 7ith famil. res5onsi4ilities% !his is essential if .ou 7ant to

retain to5 5erforming em5lo.ees%ItJs 4e$ome in$reasingl. a55arent that

famil.oriente# 5oli$ies #o more than sim5l. enhan$e a $om5an.Js re$ruitinginitiati+es% !he. also 5ro#u$e a num4er of 4ottomline 4enets ; su$h as

re#u$e# a4senteeism2 fe7er #isa4ilit. $laims an# fe7er 7orD5la$e a$$i#ents%

Pra$ti$es an# 5oli$ies t.5i$all. foun# in $om5anies 5ursuing 7orD an#

famil. initiati+es in$lu#e We@i4le s$he#uling 8We@time92 tele$ommuting2

in#i+i#ual arrangements2 em5lo.ee assistan$e 5rograms 8EPAs9 an# 4enet

5rograms that ena4le em5lo.ees to sele$t those 4enets that are rele+ant to

their 5arti$ular nee#s%

*oreo+er2 So man. 7orDers see ?R onl. in #is$i5linar. $on+ersations

that itJs no sur5rise the #e5artment has the aura of the Prin$i5alJs O6$e% !he

5erfun$tor. anni+ersar. $ar# from ?R2 or the Em5lo.ee of the *onth

han#shaDe #o nothing to assuage that image% If ?R o$$asionall. strolle# the

7orD5la$e2 sto55ing to $hat a4out a ne7 $om5an. initiati+e2 or the

+entilation or 7hate+er2 it 7oul# hel5 to remo+e some of the uhohG that

a$$om5anies an ?R sighting% E+en more e:e$ti+e 7oul# 4e to meet 7ith high

a$hie+ers informall. to get their insight on $om5an. a$ti+ities or see ho7the. #o 7hat the. #o that $oul# get $ommuni$ate# to managers%

V Info,.ation Tec8nolog

!he $om5an. shoul# $reate their o7n 7e4site an# not ust an a$$ount

on t7itter an# fa$e4ooD% -e all Dno7 that these t7o sites are hel5ful in terms



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of #isseminating information regar#ing $om5anies 8from its histor. u5 to 7hat

it $aters to the 5u4li$9 4ut these so$ial me#ia sites are la$Ding in terms of

#ata an# a$$ount se$urit. 8if the s.stem is ha+ing a net7orD tra6$ #ue to

$ontinuousl. a$$elerating site +isiting aroun# the glo4e9 the. 7ill nee# to

shut #o7n or e+en restore all a$$ounts2 the $om5an. 7ill lose not ust half

4ut all of its se$urit. u5on re4oot an# more im5ortantl. the $om5an. #oes

not ha+e real o7nershi5 on fa$e4ooD #omain% -ith their o7n 7e4site2 the.

7ill 4e for$e# to monitor e+er.#a. transa$tion an# queries 7ith their

5assengers an# ha+e to maintain an# u5#ate their site2 essential in Dee5ing

themsel+es in tou$h 7ith their $ustomers%

!he $om5an. must also ha+e an automate# $all4a$D s.stem to $onrm

ri#er reser+ations% It 7ill not ust 4enet the $om5an. from ha+ing a

$ongeste# tele5hone lines in use# 4ut also it 7onJt 4e losing no7 5otential

$ustomers 4e$ause ^7hat the. sa. is 7hat the. getJ 7ith this s.stem%

Furthermore2 there 7ill no longer 4e an e@isting log4ooD reser+ation an# the

reser+ation 5ro$ess is more se$ure no7 7ith #ata4ase management%

Referen$e *aterial

a+i#2 F% R% 80=/09% Strategic Management: Concepts and Cases 13th Edition.

PearsonE#u$ation South Asia Pte% Lt#%

Internet Sour$es

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Business Policy Project (Revised)

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