Feasib Auto Repair Shop Finale-3

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CHAPTER I

INTRODUCTION

As time goes by, modernization keeps being on progress and along with that, people's

need for more convenient means of transportation increases. A lot of people now own a

vehicle, either a car, motorcycle or any other kinds. That being said, vehicles are just machines,

it has failures sometimes and mostly happens at times that a person does not really expect.

Sometimes it does fail at places that have never been yet, on areas where only few people are

present to seek help from, and worse on places that do not have any clue where the nearest

vulcanizing or repair shops are. But to make vehicle owners' lives easier when this happens, an

auto repair shop mobile application is the best option to get assistance.

Background of the Study 

Modernization keeps being in progress and a lot of people now own a private vehicle and

public vehicle for transportation, either a car, motorcycle or any other kinds. Sometimes it has

failures, mostly happens at times that really do not expect. Riders can contact mobile

applications implementing auto repair shop and services about their whereabouts when had

vehicle malfunctions like flat tire, overheated engine, etc. as quick as possible. The researchers

came up with the idea of establishing a Mobile Application implementing auto repair shop and

services in Tagaytay.

Objectives

A. General Objective

The main objective of this study is to determine the feasibility of Vulcanizing and

Repair Shop’ Mobile Application.


B. Specific objectives

 To determine the marketing aspect of the study

 To determine the technical aspect of the study

 To determine the financial aspect of the study

 To determine the management aspect of the study

 To determine the socio-economic aspect of the study

ACT! Auto Repair Shop’s Mobile Application

Figure 1.1 Design of the Mobile Application


Figure 1.2 Design of the Mobile Application

Business Name:

ACT! Auto Repair Shop, it is the combination of owner’s surname. The abbreviation

letter A stands for Angeles, C stands for Cacas, and T stands for Toregoza.

Business Logo:

Figure 1.3 Business logo of ACT! Auto Repair Shop


Figure 1.3 shows the business logo of the company. The car in a half means broken or

need to be fix and a man with a tool means response.

Business Location:

Figure 1.4 Location of ACT! Auto Repair Shop

Figure

1.4 shows the location of ACT! Auto Repair Shop is located at 1000 Luksuhin – Mangas Road,

Alfonso, Cavite, Philippines

Marketing aspect

ACT! Auto Repair Shop is a business that provides vehicle repair and other services to

the customers. Revenues are generated from replacement part and mechanic labor sale. The

services can be in more detail, such as emergency or scheduled maintenance, brake repair,

transmission, wheel alignments, rims and tires and also comprehensive engine repair. The

researchers conducted a survey among 365 respondents from different motorists that are

travelling within Tagaytay City and gathered data to support the study. The researchers

determined that 64.4 % male and 35.6 % female respondents from 365 survey questionnaire
that is distributed within the Tagaytay City, different age of the respondents within Tagaytay

City. 39.5 % is the percentage from age 22-26 years old, 23.6 % is the percentage from age 27-

31 years old, 12.1 % is the percentage from age 32-36 years old, 11 % is the percentage from

17-21 years old, and the other percentage is 13.8% and the respondent’s purpose for visiting

Tagaytay City. 67.7 % of the respondents are tourist, 16.2 % of the respondents are work

related, 9.6 % of the respondents are resident and below 10 % of the respondents are visiting a

relative.

The researchers determined that there is 100% gap between the demand and supply for

the services. ACT! Auto Repair Shop has no direct competitors that provide the same services.

Through this, the proponents sought the marketability of the proposed business to enter the

market. The Gross profit of the company will be derived from deducting all the costs.

Technical aspect

It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

There are three possible location for the business: Location 1 is at 154 Tagaytay –

Nasugbu Highway, Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas

Road, Alfonso, Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite,

Philippines. The ACT! Auto Repair Shop is located in a 00 sq. m at 1000 Luksuhin – Mangas

Road, Alfonso, Cavite, Philippines. The location was selected through considered rated using

Factor Rating. It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

The evaluated suppliers that have the lowest unit price offered for the raw materials is

New Banawe Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila, for the equipment
is New Banawe Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila also, and for the

supplies is Shopee.

The operating time of ACT! Auto Repair Shop is twenty-four (24) hours.

Financial aspect

The financial study on the proposed business ACT! Auto Repair Shop is a viable

business. The proponents projected that the initial capital requirements cost is Php 890,866.00

to operate the business. The proponents successfully created financial statements that will

represent the performance of the proposed business within the 5-year term. Assumptions are

used to determine the possible future revenues and expenditures of the company. The proposed

business is financially viable with a payback period of ten months.

Management aspect

The ACT! Auto Repair Shop is a general partnership type of business that consists of

three business owners. The business is composed of a project manager, two officers in charge,

technician and marketing assistant. ACT! Auto Repair Shop will provide the detailed

compensation and benefits to the employees and believes that having qualified individuals to

fill positions contributes to the overall success of the company.

Socio-economic aspect

The ACT! Auto Repair Shop is not only for the profit purposes but also for the

improvement of the welfare of the people through integrating social and environmental goals

into business operations. Assessing the contribution of the business in providing benefits to the

economy, environment and community helps the business to have a high probability of success

and be accepted by the society.  People tend to have their vehicles serviced at a shop close to
their home or place of employment. So, in an area where new homes are being built or new

businesses are opening local business growth can be positively impacted. 


CHAPTER II

MARKETING STUDY

1. INTRODUCTION

Marketing refers to activities a company undertakes to promote the buying or selling of a

product or service. Marketing includes advertising, selling, and delivering products to

consumers or other businesses. Some marketing is done by affiliates on behalf of a company. It

includes the process of gathering, analyzing, and interpretation of data and information about

the target market, the product or service to be offered in the market, history of the potential

customers, and the location and needs of the target market. The essence of accurate gathering

data and information can make a business to be success because it provides rich information

about the prospective customers and the competition.

1.1 Objectives

General Objectives: 

The main objective of this aspect is to determine the marketing feasibility of Vulcanizing

and Repair Shop’ Mobile Application.

Specific Objectives:

 To identify the target market

 To determine the supply and demand of the business

 To measure and identify the demand gap

 To determine if the demand is sufficient to sustain the service

 To know what marketing strategy is to be used


1.2 Scope and Limitations

The research focuses on determining the market analysis wherein the market

segmentation, demand analysis, industry analysis, supply analysis, gap analysis and channel

analysis and marketing strategy.

Target Market:

The target market of the study is the residence, motorists and tourists within the

City of Tagaytay.

1.3 Methodology

To gather the needed information in this study, the researchers used the following

methods:

Document Record

 The researchers gathered the data about the total population of motorists and

tourists within the City of Tagaytay from Age of 17 years old to 61+ years

old, educational attainment, employment status, monthly income, purpose of

the trip to Tagaytay City, kind of vehicle, times of visiting Tagaytay City,

experience problems, common problems, and etc.

Stratified Sampling Method

 Stratified sampling was used by the researchers to partition the sampling

from a population into subpopulations.

Questionnaire
 The researchers provided questionnaire for the respondents to gather the

needed information in the study.

Survey

 The researchers conducted survey from 17 years old to 61+ years old

residence, tourists and motorists enrolled within Tagaytay City.

The data were gathered from the following:

 Tagaytay City, Cavite, Philippines Target market of residence from 17

years old to 61+ years old.

 Tagaytay City, Cavite, Philippines Target market of motorists from 17

years old to 61+ years old

 Tagaytay City, Cavite, Philippines Target market of tourists from 17 years

old to 61+ years old

1.4 Assumptions

The researchers assumed that:

 The target markets of the service are 17 years old to 61+ years old in various

barangay within Tagaytay City, Cavite.

 The establishment of the business will be located at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines.

 The demand of auto repair shop is potentially increasing.

 The proponents assumed that the forecasted demand will avail the services

provided by the business.

 Ongoing service contracts ensure steady income for the shop.


 Reduce cash flow problems both in the short and long-term.

2. SERVICE DESCRIPTION

2.1 Service Background

Auto repair business is amongst the highly thriving and profitable easy to setup auto

services related business idea can successfully start. Car repairs are one business that

never goes into extinction. This is because daily, fleets of cars are being added to the

garages of people and so whether it is a brand-new car or a fairly used one, it can be sure

that sometime in the future car repair would be inevitable. With the introduction of

technopreneurship, almost everything nowadays can be found in mobile applications

ranging from services to products.

ACT! Auto Repair Shop is to provide professional auto repair, maintenance

services and other auto repair related services that will assist businesses, individuals,

households and non-profit organizations who owns automobiles in ensuring that their

automobiles are always in good shape through a simple click from their smart phones.

ACT! Auto Repair Shop provides a wide range of auto repair services. These

include:

 Vulcanizing

 Battery Charging

 Radiator Cleaning

 Hose Replacement

 Brake Pad Replacement

 Alternator Replacement
 Alternator Repair

 Overhaul Starter

 Battery Replacement

Each job or project will be on a reservation basis, although company will accept a small

percentage of drive-in repair work.

2.2 Service Rationale

ACT! Auto Repair Shop offers a wide range of services. It is ultimately the goal of

the company to offer a one-stop facility for all auto servicing needs, including brakes,

transmission, etc. In this way the company can offer greater perceived value for the

customer than many other shops which specialize in certain areas.

The industry is highly competitive with suppliers having a great deal of power in

setting and negotiating the prices of their products and services to repair shops. In

addition, because the customers see the service as undifferentiated with little value

separation between competitors, buyer power is also high. The barriers to entry are

moderately low, and the large number of competitors in this field, including substitutes

that the pricing for such services is very competitive. The only way to have an advantage

in this industry is a low-cost leadership principal applied aggressively or to create higher

switching costs through the building of strong business to customer ties.

ACT! Auto Repair Shop will be hired trained and certified mechanics who are able

to prove to have superior customer awareness and interaction. It is the company’s

professional people who will fulfill the firm’s contracts and goals. The largest part of the

company’s expenses will be in labor costs.

3. MARKET ANALYSIS

3.1 Market Segmentation Analysis


Market Segmentation is the study of business practice that determines how a

business enterprise divides customers into smaller groups based on characteristics and

common ground share. 

VARIABLE DESCRIPTION

Country Philippines

Region IV-A CALABARZON

City Tagaytay City

Area Type Rural

Table 2.1 Geographical Segmentation


Table 2.1 shows the information about the target market location which is Tagaytay City.

3.2 Demand Analysis

3.2.1 Demand Determinants

Survey Result

The researchers conducted a survey to 365 respondents from 17

years old to 61+ years old residence and motorists within Tagaytay City.

The following graphs shown below represent the necessary questions used

to determine the needed possible information of the business. The survey

results are the following:


Figure 2.1 shows that 64.4 % male
Figure and 35.6
2.1 Gender of the%respondents
female respondents from 365 survey

questionnaires that is distributed within the Tagaytay City.

Figure 2.2 Age of the Respondents


Figure 2.2 shows the different age of the respondents within Tagaytay City. 39.5 % is the

percentage from age 22-26 years old, 23.6 % is the percentage from age 27-31 years old, 12.1

% is the percentage from age 32-36 years old, 11 % is the percentage from 17-21 years old,

and the other percentage is at 13.8%.

Figure 2.3 shows the different educational attainment of the respondents within Tagaytay

City. 65.2 % of the respondents are college graduate, 24.1 % of the respondents are

undergraduate, 9.6 % of the respondents are high school and below 5 % of the respondents are

elementary.

Figure 2.4 Employment Status of the Respondents

Figure 2.4 shows the employment status of the respondents within Tagaytay City. 77 %

of the respondents are employed and 23 % of the respondents are unemployed.


Figure 2.5 shows the monthly income of the respondents within Tagaytay City. 27.4 % of

the respondent’s monthly income is Php 20,000 – 30,000. 25.2 % of the respondent’s monthly

income is Php 10,000 – 20,000. 23. 8 % of the respondent’s monthly income is Php 0 – 10,000.

10.7 % of the respondent’s monthly income is Php 50,000 and above and below 20 % of the

respondent’s monthly income is Php 30,000 – 50,000.

Figure 2.6 Purpose of the Trip to Tagaytay City of the Respondents

Figure 2.6 shows the respondent’s purpose for visiting Tagaytay City. 67.7 % of the

respondents are tourist, 16.2 % of the respondents are work related, 9.6 % of the respondents

are resident and below 10 % of the respondents are visiting a relative.


Figure 2.7 Vehicle of the Respondents

Figure 2.7 shows the vehicle that used of the respondents within Tagaytay City. 48.48 %

of the respondents used SUV/Sedan, 32.86 % of the respondents used motorcycle, and 18.66 %

of the respondents used 4x4/Van

Figure 2.8 Times of Visit of the Respondents in Tagaytay City


Figure 2.8 shows how many times the respondents visit Tagaytay City. 56.2 % of the

respondents says sometimes and 43.8 % of the respondents says always.

Figure 2.9 shows the respondents experience during trip in Tagaytay City. 86 % of the

respondent’s experienced problems during trip and 14 % of the respondents not experience

Figure 2.10 How the respondents solve


the Response
Figure 2.10 problem during
of the trip in Tagaytay
Respondents City Problem
in Solving

problems during trip.


Figure 2.10 shows how the respondents solve the problem during trip in Tagaytay City.

58.6 % of the respondents calling for local repair shop, 33.2 % of the respondents fixing it and

Figure 2.11 Common Problems Encounter of the Respondents

below 10 % of the respondents do the other thing.


Figure 2.11 Common problems that the respondents encounter

Figure 2.11 shows the common problems that the respondents encounter. 48.5 % of the

respondents having a problem in flat tires, 17.3 % of the respondents having a problem in

overheating, 16.7 % of the respondents having a problem in empty fuel, 8.2 % of the

respondents having a problem in dead battery, 6.6 % of the respondents having a problem in

failing starter and below 5 % of the respondents having a problem in other.


Figure 2.12 Respondents’ experience difficulties when in search for help

Figure 2.12 Experience Difficulties of the Respondents

Figure 2.12 shows the difficulties when in search for help in Tagaytay City. 87.9 % of the

respondents experienced difficulties in search for help and 12.1 % of the respondents not

experience in search for help.


Figure 2.13 Respondent’s Approval of using ACT! Auto Repair Shop Mobile Application

Figure 2.13 shows that 97 % of the respondents says that the problem can solved by using

mobile application and 3 % of the respondents says that the problem can’t solve by using

mobile application.

Historical Population

Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

2015 – CY 2019

Table 2.2 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

2015

TYPE OF MOTOR VEHICLE


AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 9,188 17,957 2,506 893 100 19,412 16 50,072
Extension
Office

Table 2.3 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

2016

TYPE OF MOTOR VEHICLE


AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 9,157 17,047 2,621 869 69 20,390 20 50,173
Extension
Office

Table 2.4 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

2017
TYPE OF MOTOR VEHICLE
AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 10,571 18,058 3,251 834 58 24,354 27 57,153
Extension
Office

Table 2.5 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for

CY 2018

TYPE OF MOTOR VEHICLE


AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 12,976 20,883 4,276 1,055 60 32,048 23 71,321
Extension
Office

Table 2.6 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

2019

TYPE OF MOTOR VEHICLE


AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 13,986 22,059 4,777 1,109 81 35,603 23 77,638
Extension
Office

Table 2.7 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

2020

TYPE OF MOTOR VEHICLE


AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 15,073 23,974 4,982 1,153 92 38,781 25 84,080
Extension
Office
3.2.2 Demand Projection

Demand Projection is a way for estimation of probable demand for a

product or services in the future.

Linear Regression Method is a statistical tool that was used by the

researchers to predict the number of respondents to use mobile application.

Percentage of acceptance is based on the willingness of the respondents

to use the mobile application.

Linear Regression Formula:

where;

x= year

y= population

Forecasted Demand

Table 2.8 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office

for CY 2021

TYPE OF MOTOR VEHICLE

AGENCY SUV/Sedan 4x4/Van Motorcycle TOTAL

Tagaytay 14,959 5,756 10,139 30,854


Extension Office
Table 2.9 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office

for CY 2022

TYPE OF MOTOR VEHICLE

AGENCY SUV/Sedan 4x4/Van Motorcycle TOTAL

Tagaytay 15,198 5,847 10,317 31,362


Extension Office

Table 2.10 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office

for CY 2023

TYPE OF MOTOR VEHICLE

AGENCY SUV/Sedan 4x4/Van Motorcycle TOTAL

Tagaytay 15,437 5,939 10,496 31,872


Extension Office

Table 2.11 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office

for CY 2024

TYPE OF MOTOR VEHICLE

AGENCY SUV/Sedan 4x4/Van Motorcycle TOTAL

Tagaytay 15,676 6,030 10,674 32,380


Extension Office

Table 2.12 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office

for CY 2025

TYPE OF MOTOR VEHICLE

SUV/Sedan 4x4/Van Motorcycle


AGENCY TOTAL

Tagaytay 15,915 6,121 10,853 32,889


Extension Office

3.3 Industry Analysis

3.3.1 PEST

PEST Analysis (political, economic, social and technological) is a

management method whereby an organization can assess major external factors

that influence its operation in order to become more competitive in the market. As

described by the acronym, those four areas are central to this model.

I. Political Factor

Political factors play a significant role in determining the factors that can

impact a company’s long-term profitability in a certain country or market. There

are a number of government agencies that a company must register when starting

a company and hiring employees. It is essential to register for a company to avoid

any legal problems once business operations begin. The company must be

registered within the Department of Trade and Industry

(DTI).  As well as being registered to government agencies, the company

must also be securing a business or mayor’s permit in the respective location of

the company or local municipality.

II. Economic Factor

The state of the economy can decide many of the important details that

come up in an operating company, including topics such as consumer demand,


taxes and asset value. For a business, key economic factors include labor costs,

interest rates, government policy, taxes and management. These factors are not in

direct relation with business but it influences the investment value in the future. In

business, by studying and analyzing it, it helps one too when to invest, where to

invest and when to take money out and also be prepared for a change in economic

factor and its consequences by knowing the impact of economic factors that can

take the right decision in terms of investment.

III. Social Factor

The company should look into these factors such as social attitudes,

behavior, and trends that impact the organization and target market. Customer’s

beliefs and values need to be looked into because customers are detrimental to

their purchasing habits. Most motorists have a hard time locating nearby

vulcanizing and repair shops when their vehicle gets in trouble along the way. The

company gives convenience and efficiency in

providing emergency service for our target customers as the rise in

vehicle owners within our scope is rapidly increasing.

IV. Technological Factor

Technology is a key factor when it comes to starting up a company.

Customers want a fast and easy way of accessing products and services. With the

introduction and popularity of technopreneurship, it would impact the company’s

way of introducing itself to the market. It is shaping the field of service enabling

both customers and employees to get and provide customized services. The

technology has been the basic force behind the service innovation. With the
technology today, the company’s target market can easily access the service it

offers. It is shaping the field of service enabling both customers and employees to

get and provide customized services. The technology has been the basic force

behind the service innovation. Social media marketing is a powerful way for

businesses of all sizes to reach prospects and customers.

3.4 Competitor Analysis

Competitor analysis is an important requirement in any business plan, it is a way of

assessing and analyzing the comparative strengths and weaknesses of competitors, it may

include their current and potential product and service development and marketing

strategies.

3.4.1 Background of Existing Competitors

Direct competitors are businesses that produce a virtually identical product

or service that is offered for sale within the same market as those produced by one

or more other companies.

Indirect competitors are businesses that are offering products and services

that are close substitutes. These competitors are probably targeting the markets

with a same or similar value proposition, but delivering a different product.

I. Direct Competitors

o   the company has no direct competitors that provide the same services that

specializes in emergency service auto repair through a mobile application.

II. Indirect Competitors


 PIDOY’s Motorcycle and Auto Repair Shop

 EM Auto Mechanic Shop

 DAC Garage

 Queens Auto Workz

 2K Auto Painting and Body Repair

 MC Auto Electrical Shop

 Lin Auto Care Center

 Bruzko Autoworkz

3.4.2 SWOT Analysis

Table 2.13 Strengths, Weaknesses, Opportunities and Threats of the Business

STRENGTHS WEAKNESSES

 Good Location  Many competitors in the area


 Easy Access
 Quality of Service
 Highly skilled workforce

OPPORTUNITIES THREATS

 Expansion of market reach  New competitors will offer or establish the


 Expansion of services offered same service.
 Newly introduction of service
type
 No direct competitors in the
area

I. Strengths

o   Good Location

The target location of the company is at Tagaytay City, Cavite where there

is high volume of car density and heavy traffic which can lead to potential

demand.

o   Easy Access

The service provided by the company can be easily accessed due to it

being a mobile application.

o   Quality of Service

Customer satisfaction through high quality service is the aim of the

company.

o   Highly skilled workforce

In order to achieve high quality service, the company will hire highly

skilled employees with proper training and learning programs.

II. Weakness

o   Many competitors in the area


There are a lot of competitors in Tagaytay City so the company should

introduce a proper marketing campaign for it to be recognized and have profit.

III. Opportunities

o   Expansion of market reach

The company may expand its target market. Some of the drivers and riders

that pass through Tagaytay City came from nearby places in Cavite which the

company can expand its services to.

o   Expansion of services offered

The company may expand its services since there are many categories

under car repair and maintenance like car washing and air conditioning.

o   Newly introduction of service type

Since the type of service is new in the area, potential customers can be

curious and try the service.

IV. Threats

o   New competitors will offer or establish the same service

There is a possibility that there will be new competitors to enter the scene

and introduce the same service which could lead to the possibility that the

customers will not patronize the company. 


3.5 Supply Analysis

3.5.1 Supply Determinants

Supply Analysis is an analysis done to understand the supply trends and

response to changing market. It helps the manufacturers and companies to

understand the impact of different variables on the business.

Table 2.14 Historical Supply

Year Supply
2015 0
2016 0
2017 0
2018 0
2019 0
2020 0

The table 2.14 shows zero of historical supply because there are no direct

competitors that offer same services in auto repair shop that is within Tagaytay

City, Cavite from previous years.

3.5.2 Supply Projection

Table 2.15 Supply Forecast

Year Supply
2021 0
2022 0
2023 0
2024 0
2025 0
The table 2.15 shows that the historical supply for the previous year is zero, therefore

the supply forecast is also zero.

3.6 Gap Analysis

Gap Analysis involves determining and improving the difference between

business requirements and current capabilities.

3.6.1 Demand and Supply Gap

Table 2.16 Demand and Supply Projection


Forecasted Demand Forecasted Gap Analysis (Forecasted
(number of prototypes) Supply Demand-Forecasted Supply)
Year
2021 30,854 0 30,854
2022 31,362 0 31,362
2023 31,872 0 31,872
2024 32,380 0 32,380
2025 32,889 0 32,889

The table 2.16 shows that there is 100% gap between the demand and supply.

3.7 Channel Analysis

Channel Analysis is a useful tool for management and is crucial to creating an effective

and well-planned marketing strategy. It consists of people, organizations, and activities

necessary to transfer the ownership of goods from the point of production to the point of

consumption. It is the way products get to the end user or consumer.


ACT! Auto
Repair Shop

Residents Tourists

The figure 2.14 shows the channel analysis for the auto repair shop wherein the services

will be provided directly to the market which is the residents and tourists.

4.0 MARKET SHARE

Market share refers to a company's portion of sales within the entire market in which it

operates. It is the percentage of the market for a product or service that a company supplies.

Table 2.17 Market Share


Year Forecasted Forecasted Unsatisfied Capacity Market
Demand Supply Market (Annual Share
(Annual Share Prototype
Prototype Sales)
Sales)
2021 60,103,592 0 100 % 4,536,000 7.55%

2022 61,093,176 0 100 % 4,672,080 7.65%


2023 62,086,656 0 100 % 4,812,242 7.75%

2024 63,076,240 0 100 % 5,004,732 7.93%

2025 64,067,772 0 100 % 5,204,921 8.12%

The table 2.17 shows that the ACT! Auto Repair Shop has a market share of 7.55% for

the year 2021. The forecasted demand was multiplied by the average range of price PHP

1,948 .00 to get the forecasted demand annual prototype sales. Market share is calculated by

dividing capacity annual prototype sales by the forecasted demand annual prototype sales.

5.0 MARKETING STRATEGY

5.1 Service Strategy

Encourage Engagement on Social Media

- It can be related to anything about vehicles, driving, community, and shop such

as:

a. Driver safety tips

b. Car maintenance advice  

c. Traveling tips

d. Traffic news

e. Photos of staff and location

f. Customer satisfaction stories

g. Info about local events

h. Support for community initiatives

i. Offer specials and coupons for likes and shares

Create a Referral Rewards Program


- Current customers and new customers will receive benefits such as small freebies,

service discounts, and contest entries.

Implement a Services Subscription Plan

- Create a subscription service plan that allows customers to spread their payments

out over time in return for discounted scheduled services.

Educate customers through informative in-store content.

- One way to do that is by providing informative content that alleviates customer’s

fears, concerns, and confusion. Explains how services are performed and why

these are necessary and shares facts and evidence about the value of products and

services.

Post Before and After Photos

- It can also show customers that by sharing content that proves the value of the

work, the shop can gain trust.  Digital signage is another great way to highlight

before and after photos of the work team has completed.

5.2 Pricing Strategy

Penetration pricing - setting a low price to enter a competitive market and raising

it later. It creates customer base quickly due to low price of product because all other

factors take backseat when price offered by the company for a product is low as majority

of customers are price conscious.

5.3 Promotions Strategy

Send Regular Emails

- Use Wi-Fi Marketing or a written form to collect email addresses from customers

and launch an email newsletter.


Send Personalized Service Reminders and Deals via Email or Text

- Send targeted, personalized reminders and deals to customers through either email

or SMS.

Encourage Customers to Write Reviews

- Another way to leverage user-generated content to connect with more customers

is by collecting and posting reviews about the business.

Create a Follow-Up Program

- Another way to stay in touch with customers is following up with the customers

after visited the location.

Use In-Store Digital Signage to Promote Products and Services.

- Digital screens allow to customize waiting area television programming, quickly

update promotions, deliver animated and video advertisements, and use

programming as a silent, continuous salesperson.

5.4 Location Strategy

Consider the Importance of the Location

- The customers have to find the specific location of the business in order to take

advantage of the services provided by insurance company. So, it might be able to

save some money by not targeting the most premium business locations.

Make It Convenient for Customers

- In addition to simply choosing a location that’s easy to find, auto repair

businesses should also consider how many customers need to drop their vehicles

off and then have options for walking to restaurants or other transportation

options.
Use Signage to Attract People

- It’s best to choose a location that’s right on a main road so that people driving by

can see it and know exactly where are when customer need automotive services. 

6.0 CONCLUSION

ACT! Auto Repair Shop is a business that provides vehicle repair and other services to

the customers through their smart phones. Revenues are generated from replacement part and

mechanic labor sale. The services can be in more detail, such as emergency or scheduled

maintenance, brake repair, transmission, wheel alignments, rims and tires and also

comprehensive engine repair. The researchers conducted a survey among 365 respondents

from different motorists that are travelling within Tagaytay City and gathered data to support

the study. The researchers determined that 64.4 % male and 35.6 % female respondents from

365 survey questionnaire that is distributed within the Tagaytay City, the different age of the

respondents within Tagaytay City. 39.5 % is the percentage from age 22-26 years old, 23.6 %

is the percentage from age 27-31 years old, 12.1 % is the percentage from age 32-36 years old,

11 % is the percentage from 17-21 years old, and the other percentage is below 10%, the

different educational attainment of the respondents within Tagaytay City. 65.2 % of the

respondents are college graduate, 24.1 % of the respondents are undergraduate, 9.6 % of the

respondents are high school and below 5 % of the respondents are elementary, the employment

status of the respondents within Tagaytay City. 77 % of the respondents are employed and 23

% of the respondents are unemployed, the monthly income of the respondents within Tagaytay

City. 27.4 % of the respondent’s monthly income is Php 20,000 – 30,000. 25.2 % of the

respondent’s monthly income is Php 10,000 – 20,000. 23. 8 % of the respondent’s monthly

income is Php 0 – 10,000. 10.7 % of the respondent’s monthly income is Php 50,000 and above

and below 20 % of the respondent’s monthly income is Php 30,000 – 50,000, the respondent’s
purpose for visiting Tagaytay City. 67.7 % of the respondents are tourist, 16.2 % of the

respondents are work related, 9.6 % of the respondents are resident and below 10 % of the

respondents are visiting a relative, the vehicle that used of the respondents within Tagaytay

City. 43 % of the respondents used SUV/Sedan, 32.1 % of the respondents used motorcycle,

16.4 % of the respondents used 4x4/Van, 7.4 % of the respondents used bicycle and below 5 %

of the respondents used truck/bus, 56.2 % of the respondents says sometimes and 43.8 % of the

respondents says always for visiting Tagaytay City, the respondents experience during trip in

Tagaytay City. 86 % of the respondent’s experienced problems during trip and 14 % of the

respondents not experience problems during trip, 58.6 % of the respondents calling for local

repair shop, 33.2 % of the respondents fixing it and below 10 % of the respondents do the other

thing on solving the problem during trip in Tagaytay City, 48.5 % of the respondents having a

problem in flat tires, 17.3 % of the respondents having a problem in overheating, 16.7 % of the

respondents having a problem in empty fuel, 8.2 % of the respondents having a problem in

dead battery, 6.6 % of the respondents having a problem in failing starter and below 5 % of the

respondents having a problem in other, this are the common problems that the respondents

encounter, the difficulties when in search for help in Tagaytay City. 87.9 % of the respondents

experienced difficulties in search for help and 12.1 % of the respondents not experience in

search for help and 97 % of the respondents says that the problem can solved by using mobile

application and 3 % of the respondents says that the problem can’t solve by using mobile

application.

The researchers determined that there is 100% gap between the demand and supply for

the services. ACT! Auto Repair Shop has no direct competitors that provide the same services.
Through this, the proponents sought the marketability of the proposed business to enter the

market. The Gross profit of the company will be derived from deducting all the costs.
CHAPTER III

TECHNICAL STUDY

1. INTRODUCTION

The Technical Aspects is the discussion of basic and operation flow of the project. The

technical aspect is one of the essentials of this study because this factor responds to the

technicalities and basic structure of the proposed study. This includes the equipment, materials,

structure plan and also the source of the supplies use in the proposed project. Business plans,

promotion strategies, utilities, facilities, layout design and location include in this chapter.

It discusses how the products are to be produced, when these products are to be

produced, how much will it cost to produce the products, where to produce products and what

technology to be used. Technical aspects help the owner to determine the technical requirements

of business.

A. Objectives

a.1 General Objective

The main objective of this aspect is to determine the technical feasibility of

Vulcanizing and Repair Shop’ Mobile Application.

a.2 Specific Objective

 To determine the services offered and the service process of company.

 To identify the list of materials, machines, tools and equipment needed for

the operation of the business.

 To identify the sources of supplies of the materials and equipment.

 To define the facility plan, plant site and requirements in establishing the

business.
 To determine the capacity and schedule of the business.

B. Scope and Limitation

The research focuses on determining the technicalities needed in operating the

fabrication shop wherein the service information, service process, services offered, raw

materials, suppliers, machineries and equipment, service capacity, production plan,

maintenance schedule, manpower, facilities plan and waste management are included.

C. Methodology

To gather the needed information for the technicalities of the study, the researchers

used the following methods:

Research

 The researchers gathered information about the number of machineries and equipment

through websites and articles using internet.

Survey

 The researchers gathered information on the number of materials from different

electronics shops and hardware near the location of the establishment.

Benchmark

 The researchers used benchmarking as a technique to gather information of machine

and equipment that will be used for the shop.

D. Assumptions

The researchers assumed that:

 The location of the company is the ideal site to be established.


 The information and details of machines, tools, supplies and equipment from suppliers

is accurate

 The capacity of the service was based on the operating time

 Well-maintained machines and equipment run more efficiently

2. PRELIMINARY INFORMATION REQUIREMENTS

A. Service Information

ACT! Auto Repair Shop is to provide professional auto repair, maintenance

services and other auto repair related services that will assist businesses, individuals,

households and non-profit organizations who owns automobiles in ensuring that their

automobiles are always in good shape.

B. Market Information
b.1 Market Segmentation

Market segmentation is a business practice relying on research that leads

the direction of the researchers on how the business divides the target market into

smaller, more manageable groups based on common ground shares.

Geographical Segmentation
Table 3.1 Geographical Segmentation
Variables Description
Country Philippines
Religion IV-A (CALABARZON)
City Tagaytay City, Cavite
Area Type Rural

Geographical Segmentation illustrates the common strategy when serving customers in

a particular area, or when the broad target audience has different preferences based on location.
It involves grouping potential customers by country, region or city. The researchers selected

the location of the business with the use of Factor Rating.

Table 3.2 Demographical Segmentation


Variables Description
Age 17 years old and above
Gender Both gender (Male and Female)
Employment Status Nothing in particular
Monthly Income Nothing in particular
Type of Vehicle Nothing in particular
Educational Attainment Nothing in particular

Demographical Segmentation illustrates the geographical variables and its descriptions.

The target markets of the study are the residence and motorists within Tagaytay City, Cavite.

Psychographic Segmentation
The ACT! Auto repair shop, a center for highly thriving and profitable easy to setup

auto services within Tagaytay City. It also offers a wide range of services. It is ultimately the

goal of the company to offer a one-stop facility for all auto servicing needs, including brakes,

transmission, wheel alignment, etc.

b.2 Demand-Supply

Factor-rating systems are probably one of the most widely used location selection

techniques because it can combine diverse issues into an easy-to-understand format. Generally,

a factor rating system is a weighted list of factors with the greatest relevancy to the area and a

range of values for each factor. This method involves qualitative and quantitative inputs, and

evaluates alternatives based on comparison after establishing a composite value for each

alternative.
The researchers determine the relevant and important factors (proximity to markets,

proximity to raw materials, rent cost, water supply, energy, hazardous waste, and labor supply)

for the location of the business and assigned a weight to each factor, with all the weights

totaling 1.00. The researchers determine common scale for all factors, usually 0 to 100 and

score each alternative (Location 1, Location 2, Location 3). Each score factor was multiply by

the weight factor and add up the scores for each location alternative. The location with the

highest score is considered the best option.

The table above shows the location factors, factor rating weight and scores for the three

potential locations of the business. Location 1 is at 154 Tagaytay – Nasugbu Highway,

Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas Road, Alfonso,

Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite, Philippines.

It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

Table 3.3 Factor Rating


Location 1 Location 2 Location 3

Weig Ratin W Rating W Rating W


Location Factor ht g *R *R *R

Proximity to market 0.3 60 18 80 24 70 21

Proximity of raw
materials 0.2 40 8 60 12 50 10

Rental Cost 0.1 70 7 60 6 65 6.5

Water supply 0.1 30 3 30 3 30 3

Energy 0.1 30 3 30 3 40 4

Hazardous wastes 0.1 30 3 30 3 30 3

Labor supply 0.1 40 4 40 4 40 4


TOTAL 1 46 55 51

Table 3.3 shows the way of choosing a location of the company by using factor rating.

3. SERVICE PROCESS
A. Service Rationale

ACT! Auto Repair Shop offers a wide range of services. It is ultimately the goal of

the company to offer a one-stop facility for all auto servicing needs, including brakes,

transmission, wheel alignment, etc. In this way the company can offer greater perceived

value for the customer than many other shops which specialize in certain areas.

The industry is highly competitive with suppliers having a great deal of power in

setting and negotiating the prices of their products and services to repair shops. In

addition, because the customers see the service as undifferentiated with little value

separation between competitors, buyer power is also high.

B. Service Process: Flow Chart and Activity

The service process refers to how a service is provided. It involves procedures, task,

activities and routines by which a service is delivered to a customer.

The aim of the business is to provide an accessible and convenient fabrication shop for

engineering students in building their prototypes.

Figure 3.1 Service Process

CUSTOMER CALL

OFFICER-IN-CHARGE

ESCORTING THE CUSTOMER


RESPONSE

NO
CUSTOMER APPROVAL END

YES
 Vulcanizing
SERVICE OFFER  Battery Charging
 Radiator Cleaning
 Hose
Replacement
REPAIR  Brake Pad
Replacement
 Alternator
COMPUTATION OF Replacement
SERVICE  Alternator Repair
 Overhaul Starter
 Battery
Replacement
END

Figure 3.1 shows the service process of ACT! Auto Repair Shop

Services Offered
 Vulcanizing

The process of treating crude or synthetic rubber or similar plastic

material chemically to give it useful properties. Patching a tire with a radial

patch can take about 20 to 30 minutes while installing a plug takes only a few

minutes and usually can be done while the tire is still on the car.
 Battery Charging

The conversion of energy from chemical to electrical is known as

the charging. And when the electric power changes into chemical energy then it

is known as discharging of the battery. During the charging process, the current

passes inside the battery because of chemical changes. Charging a regular car

battery with a typical charge amp of around 4-8 amperes will take about 10-24

hours to charge it fully. To boost your battery enough to be able to start the

engine, it would take around 2-4 hours.

 Radiator Cleaning

A coolant flush, also referred to as a cooling system service or radiator

flush, is the process of adding a cleaner to the cooling system to eliminate

sediment or rust. The system is then flushed thoroughly while new antifreeze

and a conditioner to protect against corrosion are added. The flush takes less

than 10 minutes to dissolve the thick deposits in the engine, after which it will

turn muddy.

 Hose Replacement

There are different hoses: Molded hoses are not interchangeable with any

other type, or with any other vehicle; Universal Hoses are straight rubber hoses

that can be used in some applications; Branched Molded Hoses some of it are

actually branched; and Flex Hoses: Flex hose is a shortcut. It’s a type of hose
built to offer some flexibility and make a generic, one-size-fits-all replacement. In

fact, it can usually have radiator hoses replaced in about 15 minutes or so

as long as to take the car to a reputable mechanic. It's one more reason why

it makes so much sense to get it done when the radiator hoses go bad.

 Brake Pad Replacement

Brake pads convert the kinetic energy of the vehicle to thermal energy

through friction. The brake pads must usually be replaced regularly to

prevent brake fade. Most brake pads are equipped with a method of alerting the

driver when this needs to be done. The type of car brake service you need is the

best indicator of time requirements. Simple jobs like a brake pad

replacement can take anywhere from 15 minutes to an hour. The time it takes for

a repair also depends on which type of vehicle you have and what parts the shop

has on hand.

 Alternator Replacement

Replacing an electric generator for producing alternating current. In

general, it will take about 2 hours to replace an alternator, though this could vary

somewhat depending on the knowledge of car mechanics. Take the car into a shop

in order to have the alternator replaced, timing may vary somewhat, and it may

have to leave the car for the day.

 Alternator Repair

Bearing failure is one of the most common causes of alternator failure.

This occurs when one or many components within the alternator breaks due to

excess heat or contamination. When this happens, the alternator doesn’t spin and
no longer generates a charge for the battery. It will take about 1-2 hours to repair

an alternator.

 Overhaul Starter

In order to perform an overhaul, the first operation is to remove the engine

from the chassis, in order to facilitate the disassembly of the starter motor. Each

type of engine has its own attachment, but usually removing just a few screws

allows you to free the starter motor. It will take between 2 and 4 hours for the

replacement.

 Battery Replacement

Battery for use in place of an existing battery, giving the same or similar

operating and performance characteristics. This service usually takes about 15

minutes.

4. RAW MATERIALS
A. Raw Materials Description
Table 3.4 Description of the Materials
RAW MATERIAL DESCRIPTION
Radiator Hose The radiator hose is an essential part of the
cooling system that manages the flow of
coolant from the water pump to the heater.
The radiator hose is a rubber device that
removes excess heat from the coolant
before it goes back to the engine to repeat
the cycle again.
Brake Pads Brake pads are a component of disc brakes
used in automotive and other applications.
Brake pads are composed of steel backing
plates with friction material bound to the
surface that faces the disc brake rotor.

Battery: NS40 An automotive battery is a rechargeable


2SMF battery that is used to start a motor vehicle.
N70/SM3 Its main purpose is to provide an electric
N560 current to the electricity powered starting
MOTOR 5L motor, which in turn starts the chemically
powered internal combustion engine that
actually propels the vehicle.
Gas: Diesel Gasoline car typically uses a spark-ignited
Unleaded internal combustion engine, rather than the
Special compression-ignited systems used in diesel
vehicles. In a spark-ignited system, the
fuel is injected into the combustion
chamber and combined with air. The air or
fuel mixture is ignited by a spark from the
spark plug.
Tire Glue Tire glue is an adhesive substance used for
sticking usually use in tire.

B. Bill of Raw Materials


Table 3.5 Amount of the Raw Materials
RAW MATERIAL AMOUNT
Radiator Hose Php 2,800.00
Brake Pads Php 1,600.00
Battery: NS40 Php 2,000.00
2SMF Php 5,000.00
N70/SM3 Php 4,500.00
N560 Php 2,500.00
MOTOR 5L Php 500.00
Gas: Diesel Php 37.25 (per liter)
Unleaded Php 44.50 (per liter)
Special Php 45.00 (per liter)
*assume Php 22,815 per year
Tire Glue Php 90.00
TOTAL Php 41, 805.00
Note: dd – Not fixed amount
C. Raw Materials Suppliers
Stores that sell tools and other items used in automotive parts, equipment, machines and

etc:

Figure 3.2

Autopards Aftermart

Autopards

Aftermart

located in

Buho Silang Cavite, 4118 Silang, Philippines.

Figure 3.3

Oreo Auto Supply

Oreo Auto Supply located in Banawe St, Quezon City, 1113 Metro Manila,

Philippines.
Figure 3.4 New Banawe Auto Supply

New Banawe Auto Supply located in 22 Banawe St, Quezon City, 1113 Metro

Manila, Philippines.

Figure 3.5 Shopee Logo

Shopee is a social marketplace that provides an accessible shopping where

everyone can browse and sell different products anytime, whether it is for

clothing, school stuffs, furniture, equipment, components and parts.


Figure 3.6 Lazada Logo

Lazada is a social marketplace just like Shopee that also provides an

accessible shopping of different kinds of product for everyone through the use of

internet.

Figure 3.7

MyBenta.com is a comprehensive classified ad listing site in the

Philippines. They are born at a time when Pinoy sellers hope for a free and easy

way to post their ads, and get their orders and answer queries online. It was also a

time when online shoppers want to have a choice of quality products at the best

price. Aim to provide a fair online marketplace for Filipino buyers and sellers.

c.1 Gas Supplier

Figure 3.8 Petron Logo


Petron Corporation is the largest oil refining and marketing company in

the Philippines, supplying more than a third of the country's oil requirements.

D. Raw Materials Supplier Evaluation


Table 3.6 Raw Materials Supplier’s Evaluation
SUPPLIERS
Autopards Oreo Auto Supply New Banawe
Aftermart Buho Banawe St. Quezon Auto Supply 22
RAW MATERIAL 4118 Silang, City, 1113 Metro Banawe St.
Cavite Manila Quezon City, 111
Metro Manila
Radiator Hose Php 3,100.00 Php 2,800.00 Php 3,000.00

Brake Pads Php 1,790.00 Php 1,700.00 Php 1,600.00


Battery: NS40 Php 2,300.00 Php 2,000.00 Php 2,250.00
2SMF Php 5,500.00 Php 5,000.00 Php 5,200.00
N70/SM3 Php 4,800.00 Php 4,700.00 Php 4,500.00
N560 Php 2,750.00 Php 2,600.00 Php 2,500.00
MOTOR 5L Php 500.00 Php 550.00 Php 540.00
Tire Glue Php 100.00 Php 100.00 Php 90.00
5. MACHINES, EQUIPMENT, SUPPLIES
A. Machine, Equipment and Supplies
Machine and equipment that the ACT! Auto Repair Shop need to get shop ready

for business.

Table 3.7 Amount and Specifications of the Machines

MACHINE SPECIFICATIONS QUANTITY AMOUNT


Air Compressor Turbo, DC Power, 230 V 1800
W, 37 kg, 50 L, 8 bars (115
1 Php 3,890.00
psi)
Battery charger Battery Charger Portable
12//24 V DFC30
1 Php 2,670.00
Maximum Output: 30 A
Frequency: 50/60 Hz
Voltage: 12 V/24 V

Welding Machine Material: Metal


Weight: 36.4 pounds
1 Php 5,000.00
Dimensions: 13.4 x 7.2 x 11.4
inches

TOTAL Php 11,560.00

Table 3.8 Amount and Specifications of the Equipment

EQUIPMENT SPECIFICATIONS QUANTITY AMOUNT


Jack Stand 3 Ton Heavy Duty Hydraulic
Floor Jack 3 Ton, 410 mm
1 Php 1,680.00
680x285x185 mm

Oil drain/ Oil caddy 30 Gallon Gas Caddy/Oil


Drain Tank Automotive Fuel
1 Php 5,600.00
Transfer Pump Portable
Strut compressor Jaw Opening: 4" - 10"
Size: 32*20*33 cm
1 Php 3,360.00
Type: Clamp

Transmission Jack 0.5 – Ton High Position


Telescopic Truck Hydraulic
1 Php 4,810.00
Transmission Jack
Material: Steel

Vehicle Lift Type: Double Cylinder


Hydraulic Lift
1 Php 38,470.00
Lifting Capacity:
3500kg

Toolbox Items:
Hammer
Flat Screwdriver
Phillips Screwdriver
Tape Measure
Adjustable
Crescent Wrench
1 Php 7,000.00
Vice Grip Pliers
Electric Drill
High-Quality Level
Utility Knife and Blades
Try Square
Flashlight
Gloves
Goggles
Earplugs
Duct Tape
High-Quality Scissor
Handsaw
Sandpaper
Clamps
Nose Pliers
Allen Keys
Aviation Snips

Computer Core i3 3rd Gen, 4GB RAM,


320 HDD Storage, 19 inches
1 Php 7,800.00
LCD Monitor
Price: Php 7,800.00

Printer Mobile Device Printing


Networking Wireless
ENERGY STAR Certified Info 1 Php 5,000.00
Printer Type All in One, Fax
ISO Color Print Speed info
4.4 pages per minute
ISO Mono Print Speed
Info8.8 pages per minute

TOTAL Php 73,720.00

Table 3.9 Amount and Specifications of the Supplies


SUPPLY SPECIFICATION QUANTITY AMOUNT
Bond Paper Size: Letter (8 x 11)/ Legal
(8.5 x 14)
6 rims Php 870.00
Substance: 20/70 gsm
1 ream: 500 sheets
Price: Php 145.00 per rim

Ballpen Panda Ballpen


12 pcs/box
3 Php 204.00
Price: Php 68.00 per box

Table Material: Laminated Wood


Color: Gray
1 Php 3,650.00
Dimension: L45.75″ x
W22.75″ x H29.75″

Office Chair Thick Ergo Dynamic Cushion,


Black High Quality Korean
Mesh Upholstery 1 Php 2,499.00
Weight Capacity: 100 kg, Tilt
Lock Mechanism, 300 mm
Chromed Steel Base

Bench The Lifetime 5-Foot Fold-in


Half Bench is constructed of
3 Php 5,967.00
high – density Polyethylene
and Powder – Coated Steel
Price: Php 1,989.00

Light Bulb Led Bulb * 270’ Beam Angle


* Daylight * 88 % Energy
14 Php 2,240.00
Savings * 15,000 Life Hours
Price: Php 160.00

Fluorescent Lamp 5 Watts Fluorescent Tubular


Medium Bi-Pin Lamp
15 Php 13,500
Price: Php 900.00

Broom Nylon Hard-Bristle Broom w/


Handle
Price: Php 70.00 2 Php 140.00

Dustpan Plastic Dustpan 2 Php 70.00


Price: Php 35.00

Fire Extinguisher Chemical Fire Extinguisher


Capacity: 10 lbs.
2 Php 3,000.00
Size: 4.54 kg
Price: Php 1,500.00

First Aid Kit Gauze Bandage 4x10 yards,


Elastic Bandage 3x5, Burn
2 Php 760.00
Ointment, Isopropyl Alcohol,
Ammonia Bottle, Povidone
Iodine, Hand Sanitizer, Gauze
Pad 2x2, Adhesive Plaster,
Whistle
Price: Php 380.00

Time Card Card Size: 86 mm x 131 mm


50 pcs/pack
2 Php 100.00
Price: Php 50.00 per pack

Record Book Size: Regular (11.25 x 7


inches)
2 Php 130.00
Price: Php 65.00 per book

Floor Map Microfiber Spin Mop and


Bucket Floor Cleaning 360⁰
2 Php 1,000.00
Rotating Head
Dimension: 21 cm x 46 cm x
26 cm
Price: Php 500.00
Dust Feather Feather Duster
Size: Approx. 50 cm
1 Php 80.00
length/19.69 inch

Stapler HBW Office Stapler with


3 Php 261.00
Staple Remover
Model: 9949 – 1
Staples HBW Office Staples
No. 24/6 1000 Staples/box 5 Php 75.00
Price: Php 15.00 per box

Garbage Bag Size: Small (50x60 cm)


Color: Black
5 Php 625.00
1 Roll: 50 pcs.
Price: Php 125.00 per roll

TOTAL Php 35,171.00

Table 3.10 Total Amount for the Equipment, Machines and Supplies

a.1 Machines and Equipment Suppliers

Companies that manufacture goods that are used in the production process

of an automobile or become part of an automobile, such that supply goods

directly or indirectly to an automobile manufacturer and synonymous. The role of

a supplier in a business is to provide high-quality products from a manufacturer at

a good price to a distributor or service establishments.


The researchers searched for the possible suppliers of the equipment and

machines that will be used in auto repair shop by simply visiting the hardware

stores personally and made an inquiry on the existing amount of equipment and

machines.

Stores that sell tools and other items used in automotive parts, equipment, machines and

etc:

Figure 3.9

Autopards Aftermart

Autopards

Aftermart

located in

Buho Silang Cavite, 4118 Silang, Philippines.

Figure 3.10

Oreo Auto Supply

Oreo Auto Supply located in Banawe St, Quezon City, 1113 Metro Manila,

Philippines.
Figure 3.11 New

Banawe Auto Supply

New Banawe Auto Supply located in 22 Banawe St, Quezon City, 1113 Metro

Manila, Philippines.

Figure 3.12 Shopee Logo

Shopee is a social marketplace that provides an accessible shopping where

everyone can browse and sell different products anytime, whether it is for

clothing, school stuffs, furniture, equipment, components and parts.


Figure 3.13 Lazada Logo

Lazada is a social marketplace just like Shopee that also provides an

accessible shopping of different kinds of product for everyone through the use of

internet.

Figure 3.14

MyBenta.com is a comprehensive classified ad listing site in the

Philippines. They are born at a time when Pinoy sellers hope for a free and easy

way to post their ads, and get their orders and answer queries online. It was also a
time when online shoppers want to have a choice of quality products at the best

price. Aim to provide a fair online marketplace for Filipino buyers and sellers.

a.2 Machines, Supplies and Equipment Supplier Evaluation


Table 3.11 Machines Supplier’s Evaluation
SUPPLIERS
Autopards Oreo Auto Supply New Banawe
Aftermart Buho Banawe St. Quezon Auto Supply 22
MACHINE 4118 Silang, City, 1113 Metro Banawe St.
Cavite Manila Quezon City, 111
Metro Manila
Air Compressor Php 4,000.00 Php 3,950.00 Php 3,890.00

Battery Charger Php 3,000.00 Php 2,700.00 Php 2,670.00


Welding Machine Php 5,700.00 Php 5,000.00 Php 5,250.00

Table 3.12 Equipment Supplier’s Evaluation


SUPPLIERS
Autopards Oreo Auto Supply New Banawe
Aftermart Buho Banawe St. Quezon Auto Supply 22
EQUIPMENT 4118 Silang, City, 1113 Metro Banawe St.
Cavite Manila Quezon City, 111
Metro Manila
Jack Stand Php 1,800.00 Php 1,680.00 Php 1,700.00
Oil Drain/Oil Caddy None Php 5,600.00 Php 5,600.00
Strut Compressor Php 3,800.00 Php 3,700.00 Php 3,360.00
Transmission Jack Php 4,950.00 Php 4,850.00 Php 4,810.00
Vehicle Lift None Php 38,470.00 Php 39,000.00
Toolbox Php 8,000.00 Php 7,600.00 Php 7,000.00
SUPPLIERS
EQUIPMENT Lazada Shopee Sulit.com
Computer Php 8,000.00 Php 7,800.00 Php 8,000.00
Printer Php 6,000.00 Php 5,500.00 Php 5000.00

Table 3.13 Supplies Supplier’s Evaluation


SUPPLIERS
Lazada Shopee Sulit.com
SUPPLY
Bond Paper Php 149.00 Php 145.00 Php 155.00
Ballpen Php 69.00 Php 68.00 None
Table Php 3,799.00 Php 3,650.00 Php 3,700.00
Office Chair Php 2,500.00 Php 2,499.00 Php 2,600.00
Bench Php 1,999.00 Php 1,999.00 Php 1,989.00
Light Bulb Php 160.00 Php 170.00 Php 185.00
Fluorescent Lamp Php 949.00 Php 900.00 Php 950.00
Broom Php 140.00 Php 135.00 Php 139.00
Dustpan Php 40.00 Php 35.00 None
Fire Extinguisher Php 1,500.00 Php 1,599.00 Php 1,600.00
First Aid Kit Php 380.00 Php 390.00 Php 395.00
Time Card Php 55.00 Php 50.00 None
Record Book Php 70.00 Php 65.00 Php 70.00
Floor Map Php 550.00 Php 500.00 Php 570.00
Dust Feather Php 89.00 Php 80.00 Php 85.00
Stapler Php 270.00 Php 261.00 Php 265.00
Staples Php 18.00 Php 15.00 None
Garbage Bag Php 136.00 Php 130.00 Php 125.00

6. CAPACITY PLAN
A. System Capacity
Capacity planning is an integral aspect to business that no service organization should

be without. It helps structure growth to ensure the business maintains a competitive edge in a

marketplace that’s changing constantly to meet demand.

For service organizations, capacity has a measurable impact. It’s the number of services

they are able to perform, or people they are able to provide over a specific period of time.

a.1 Annual, Monthly, Daily Capacity (per process)


Table 3.14 Daily Capacity per Process of ACT! Auto Repair Shop
SERVICE NUMBER OF MINUTES OF CAPACITY (PER
MINUTES PER SERVICE TO VEHICLE)
DAY ACCOMPLISH
Vulcanizing 1,440 25 58
Battery Charging 1,440 1,020 2
Radiator Cleaning 1,440 10 144
Hose Replacement 1,440 15 96
Brake Pad 1,440 40 36
Replacement
Alternator 1,440 120 12
Replacement
Alternator Repair 1,440 90 16
Overhaul Starter 1,440 180 8
Battery Replacement 1,440 15 96

Table 3.15 Monthly Capacity per Process of ACT! Auto Repair Shop
SERVICE NUMBER OF MINUTES OF CAPACITY (PER
MINUTES PER SERVICE TO VEHICLE)
MONTH ACCOMPLISH
Vulcanizing 43,800 25 1,752
Battery Charging 43,800 1,020 43
Radiator Cleaning 43,800 10 4,380
Hose Replacement 43,800 15 2,920
Brake Pad 43,800 40 1,095
Replacement
Alternator 43,800 120 365
Replacement
Alternator Repair 43,800 90 487
Overhaul Starter 43,800 180 244
Battery Replacement 43,800 15 2,920

Table 3.16 Annually Capacity per Process of ACT! Auto Repair Shop
SERVICE NUMBER OF MINUTES OF CAPACITY (PER
MINUTES PER SERVICE TO VEHICLE)
YEAR ACCOMPLISH
Vulcanizing 525,600 25 21,024
Battery Charging 525,600 1,020 516
Radiator Cleaning 525,600 10 52,560
Hose Replacement 525,600 15 35,040
Brake Pad 525,600 40 13,140
Replacement
Alternator 525,600 120 4,380
Replacement
Alternator Repair 525,600 90 5,840
Overhaul Starter 525,600 180 2,920
Battery Replacement 525,600 15 35,040

7. SERVICE PLAN
A. Service Schedule

Since the mission of ACT! auto repair shop is to response for emergency call, the shop is

open for 24-hours. At 24 Hour Auto Servicing, the simply offer the best out of us. We handle

every service: maintenance, tires and repairs with the best parts, prices and people around. And

company believe the customers will notice.


Table 3.17 Service Schedule

Day Time

Monday 24 Hours

Tuesday 24 Hours

Wednesday 24 Hours

Thursday 24 Hours

Friday 24 Hours

Saturday 24 Hours

Sunday 24 Hours

Holiday 24 Hours

The table 3.17 shows the operation schedule of ACT! Auto Repair Shop. From

Monday to Sunday, the store would be operational 24-hours.

8. MAINTENANCE SCHEDULE

Maintenance schedule represents the routine services and or inspections that are to be

performed on a plant item. Each maintenance schedule consists of multiple intervals which are

assigned a service or inspection procedure. maintenance schedule is a useful tool that keeps

cost down and property function and appearance up. This allows work to get done in the most

efficient, economical way.

Since the mission of ACT! Auto Repair Shop is to response for emergency call, the shop is

open for 24-hour. At 24 Hour Auto Servicing, the simply offer the best out of us. Company

handles every service; maintenance, tires and repairs with the best parts, prices and people

around. And believe that the customers will notice.


Scheduled maintenance tasks such as routine inspections help detect minor problems

before develop into system failures. Since ACT! Auto Repair Shop is open from Monday to

Sunday, operating 24-hours, cleaning maintenance would strictly schedule every working day

A brief downtime can result in significant losses due to halted productivity and routine

maintenance would be scheduled regularly performed in order to make sure each asset

performs as needed. Each of these machines needs to be perfectly calibrated to perform its

function at precisely right moment in exactly the right way.

Table 3.18 Maintenance Schedule of ACT! Auto Repair Shop


Attention Points Interval
1. Check frame equipment components for leaks and As Needed
lubricate moving parts.

2. Drain the air-compressor tank. daily

3. Check all hoses and fittings for leaks. daily

4. Sweep the floors and empty the wastebaskets. daily

5. Check the mixing machine visually. All the mixing daily


lids should be turning.

6. Check any breathing air masks, hoses and related daily


parts.

7. Hose down the shop walls and floors. weekly

8. Change booth ceiling filters. weekly

9. Update the paint shop computer. monthly

10. Check the air dryers Monthly


11. Hire professional service in electrical safety Monthly
12. Pressure washes the entire shop, including the walls, Annually
floors and booth top.

13. Calibrate booth thermometers and temperature Annually


controls.
9. MANPOWER COMPLEMENT
A. Direct Manpower

Direct Manpower - are the workers that involved in the hands-on production of

goods and services. Employees that are directly involved in the process of the service

such as people working on a particular area of the service production.

 Mechanic

B. Indirect Manpower

Indirect Manpower (Outsource) – are workers who do not directly produce goods

or services, but who make their production possible or more efficient.

 Project Manager

 Officer-in-charge

 Marketing Assistant

10. FACILITIES PLAN


A. The Plant Site

Plant location refers to the choice of the region where men, materials, money,

machinery and equipment are brought together for setting up a business or factory. While

taking plant location decision organizations need to consider various factors such as

availability of men, materials, money, machinery and equipment.

ACT! Auto Repair Shop location is 1000 Luksuhin – Mangas Road, Alfonso,

Cavite, Philippines and it is a three hundred (300) square meter.


Figure 3.15 Location Site of ACT! Auto Repair Shop

B. The Plant Layout

Plant layout can be defined as a technique of locating machines, processes and

plant services within the factory so as to achieve the greatest possible output of high

quality at the lowest possible total cost of manufacturing.

Figure 3.16 Ground Floor Layout of ACT! Auto Repair Shop


Figure 3.17 Mezzanine Floor Layout of ACT! Auto Repair Shop

C. Plant Requirements
c.1 Building Contractor

The building contractor plans and coordinates construction activities, and

must complete the project within the established time and budget. Contractors are

responsible for the entire construction process, and must determine the best

methods to finish the project as specified.

c.2 Building Lighting

The lighting in the ground floor and second floor working area has

twelve (12) 20-watt fluorescent lamps to maintain the visibility of the space and

the light inside and five (5) 8-watt LED bulb for walkway, stairs, main office,

receiving area and comfort room.


c.3 Building Entrance and Exit Points

Building entrances and exits are temporary stone-stabilized areas located

at the points of ingress and egress of the vehicles. The purpose of construction

entrances/exits is to provide a stable pathway to keep the mud and sediment off

the public roads.

The entrance and exit points of the shop will be located on the front part

of the store and there will be one fire exit in the building.

c.4 Building Ventilation

Building ventilation is a necessary process for the inhabitants and also for

building due to the following causes.

 To get fresh air by changing the used air which contains less oxygen.

 To drive out bad smell produced due to the heat and humidity and smoke

from the building.

 To prevent the production of bacteria and other fatal germs.

c.5 Parking Lot/Bay

A parking lot is an area that is assigned for parking. Normally, the parking

spaces are marked on the ground with white or yellow lines that form squares that

each fit one car.

The building has an available parking space in front.

c.6 Temperature

Temperature control in car servicing and automotive workshop areas is

commonly forgotten as well as those who work in a workshop environment.


Not only is temperature control important for staff safety and comfort

which could improve their efficiency at work and general happiness, but

workshops and the automotive industry in general has a number of hazardous

substances and processes which affect the air quality and can raise the indoor

temperature.

The project manager or owner of the ACT! Auto Repair Shop will try to

maintain the temperature of these areas with uninsulated steel roller doors as the

main entry, is painful when the shutters are working against the workers. With a

better insulated option, not only will the staff be happier and more comfortable,

but also more likely to work efficiently, whilst saving costs in heating/cooling.

c.7 Safety Considerations

Working on vehicles can be a fun, exciting, and rewarding career.

However, repair shop owners and their staff need to ensure the proper safety

precautions and rules are implemented and followed at all times. Safety measures

help protect employees from accidental injuries to themselves, their co-workers,

customers, and the vehicles they are repairing. The following is a list of general

safety tips every repair shop should use to keep everyone safe.

Safety tips:

 Never smoke in or near repair bays or garages. Vehicles contain flammable

and combustible fluids which can easily be set on fire if a hot ash from a cigar

or cigarette were to come into contact with such materials.

 Keep work areas clean and organized. Pick up tools and use tool cabinets to

keep walkways clear and free from clutter.


 Never wear loose clothing or clothing that is ripped or torn. To prevent

employees from wearing unacceptable attire, it is recommended to obtain

customized uniforms and work apparel from a qualified uniform service

company.

 Wear protective gear at all times, as appropriate for the repair. Goggles,

gloves, and ear protection should be worn when making certain types of

repairs.

 Make sure fire extinguishers are easily acceptable and appropriate for all

potential fire types. In the event of a fire, extinguishers need to be accessed

quickly and be charged with the right materials to put out the type of fire: gas,

oil, electrical, and so on.

 Always disconnect the battery when working on electrical systems and

near/around electrical wiring. Even when the vehicle is off, there is still the

potential for current to pass through electrical wiring.

 Never place hands, tools, or other objects near the engine while it is running.

The moving parts and components could cause injury to a person or the

vehicle itself.

 Never work underneath a vehicle unless it has been properly supported.

Raising the vehicle off the ground to access the underside requires verifying it

is stable, and that there is no risk of the vehicle falling on top of the mechanic.

 Always remove the keys from the ignition switch. Never leave the key in the

ignition switch, as the key can draw an electrical charge from the battery.

Also, avoid unplugging fuses and wiring harnesses while the key is in the on
position. Otherwise, there is a risk of electrical shock or electrical spikes that

may damage electronic parts and wiring.

 Be aware of the vehicle’s temperature before beginning any work. The engine,

manifold, exhaust system, and radiator could be hot and can cause skin burns.

Plus, the radiator coolant is still pressurized.

Some of the hazards faced by those in the automotive environment include:

 Petrol containers and gas cylinders: These are highly flammable substances

and could cause fatality and serious injury if not carefully handled and stored.

 Solvents: It can enter the body when a person breathes in, through skin

contact, or through the mouth from contact with food or fingers.

 Spray paints: Inhaling paint fumes may cause occupational asthma. Long term

exposure can affect the brain, damage the reproductive system and cause

kidney or liver damage. Contact with the skin may cause dermatitis.

 Batteries: contain acid and must be treated with caution.

 Welding equipment: generate hazardous fumes and should be separated from

other workshop activities and from workers who may not be protected by

fume extraction systems, ventilation or appropriate PPE.

 Dust is caused by jobs like sanding, sweeping, grinding and cutting. Small

metal pieces can be generated by cutting and sanding operations, and worker

can reduce dust by using machines that are enclosed or fitted with local

exhaust ventilation.

 Carbon Monoxide: Carbon monoxide (CO) is a highly toxic gas produced

when fuels burn incompletely. The typical internal combustion engine used in
most cars and trucks, can produce extremely high concentrations of carbon

monoxide and we cover this in more detail below.

D. Utilities Provider

Figure 3.20 Meralco Logo

Electricity is one of the greatest technological innovations of mankind. It is one of the

most important for operating all appliances, lighting and of course, all technology. Manila

Electric Company also known as Meralco is the largest private sector electric distribution

utility company and committed to being the total energy solutions provider of choice. In line

with this, Meralco will be the electricity provider of the service.

Figure 3.21 Tagaytay City Water District Logo

Tagaytay City Water District is an economically viable and sustainable that can provide

safe and affordable water to all residents of the City of Tagaytay, Cavite. For continuous and

uninterrupted supply of safe and clean water.

Tagaytay City Water District will be the water provider of the service.

E. Shipment: Building Dock


11. WASTE MANAGEMENT

Waste reduction, the combination of waste prevention and recycling efforts, makes good

financial sense. In addition to financial advantages, waste prevention benefits the environment,

benefits society, and company establishes itself as a good community citizen, providing

immeasurable, lasting rewards.

Waste reduction begins by understanding what is being purchased, how goods are used,

and then is put to use by finding ways to eliminate, reduce, reuse, and recycle materials.

Table 3.19 Waste Management

Recommended Preferred Hazardous


Storage Disposal Waste?
Liquids -Waste Oil -Drum (segregate) -Oil recycler -Special
-Transmission Fluid -Drum (segregate) -Oil recycler -Special
-Gear Oil -Drum (segregate) -Oil recycler -Special
-Solvents (solvent -Solvent sink -Solvent -Special
sink) recycler
-Solvents, Thinners, -Tank (segregate) -Fluids recycler -Possibly
Misc. Fluids -Hazardous
-Brake Fluid -Drum or Tank waste hauler -Yes
-Recycler
-Antifreeze -Drum or Tank -Hazardous -Special
-Paints -Organizer waste hauler -Yes
container
Solids -Used parts; clean -Bin (covered or -Scrap collector -No
metal scrap indoors)
-Used oil parts, fuel -Drum -Hazardous -Yes
filters, etc. waste hauler
-Metal Shavings -Bin (covered or -Scrap collector -No
indoors)
-Tires -Covered or -Tire hauler -No
indoors
-Batteries -Open rack -Battery -Special
supplier
-Oil Filters -Drum (drain first) -Oil recycler -Special
-Used Rags -Rag bin with lid -Rag laundry -Possibly
-Empty cans, -Drum -Mun. trash/haz -Possibly
bottles, aerosol waste hauler
cans, etc.
-Soiled cleanup -Drum -Mun trash/haz. -Possibly
absorbent waste hauler

12. CONCLUSION

It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

There are three possible location for the business: Location 1 is at 154 Tagaytay –

Nasugbu Highway, Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas

Road, Alfonso, Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite,

Philippines. The ACT! Auto Repair Shop is located in a 300 sq. m at 1000 Luksuhin – Mangas

Road, Alfonso, Cavite, Philippines. The location was selected through considered rated using

Factor Rating. It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

The evaluated suppliers that have the lowest unit price offered for the is New Banawe

Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila, for the equipment is New

Banawe Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila also, and for the supplies

is Shopee.

The operating time of ACT! Auto Repair Shop is twenty-four (24) hours.
CHAPTER IV

FINANCIAL STUDY

1. INTRODUCTION

Financial feasibility focuses specifically on the financial aspects of the study. It assesses

the economic viability of a proposed venture by evaluating the startup costs, operating

expenses, cash flow and making a forecast of future performance. It shows the viability of the

proposed business through the presentation of the financial statements. It is the side of the

study where the business can communicate itself to the respective investors. This aspect shows

the financial outcome of the proposed business.

A. Objectives

General Objective:

The main objective of this aspect is to determine the financial feasibility of Vulcanizing

and Repair Shop’ Mobile Application.

Specific Objectives:

• To compute the initial capital requirements and of the proposed business.

• To create and generate financial statements.

• To calculate financial ratios used to measure liquidity, profitability and stability

of the business.

• To determine when will be the return of investment.

Scope and Limitations

The financial aspect covers all the financial activities of the ACT! Auto Repair Shop. It

focuses on the total project cost, financial statements and financial ratio of the proposed

business.
Financial Assumptions

To determine the possible future revenues and expenditures of the company,

ACT! Auto Repair Shop assumes the following:

• The business will adopt the calendar year operation starting 2021 of January.

• Working days are 7 days in a week; 4 weeks in a month.

• Workers will work 8 hours in a day.

• The overall projected investment cost is P890,866.00

• Employee Salaries are expected to increase to 2% every year.

• Fixed assets will be depreciated over their life span in accordance with depreciation

table in the appendices with zero residual value.

• Useful life of 10 years for the office supplies, equipment and machines.

• Repairs and Maintenance will be 5% of the total carrying amount of the Property every

year.

• Unused Supplies at the end of the year is 5% of the total supplies available for use

during the year. Supplies purchases will increase 10% every year.

• Raw Materials Inventory will be maintained at 10% of the Cost of Sales.

• Advertising and Promotion Expenses will be P10,000 annually for 5 years.

• Waste Management Expenses were to P2,800 annually for 5 years.

B. Estimated Total Project Cost


b.1 Initial Capital Requirements

The amount of PHP 890,866.00 is composed of supplies, property,

machines and equipment, advance rental and security deposits and one year

working capital is needed as an initial requirement to start up the business.


b.2 Sources of Funds

For a business to commence, funds must be sources either through equity or

capital investment of the partners or both. In this case, the proponents elected the

use of only equity to finance the business wherein each partner will contribute an

equal amount of Php 300,000.

Table 4.2 Partner’s Contribution


b.3 Pre-Operating Costs

Services Offered and Prices


Service Revenue
Financial Ratios
3. CONCLUSION

The financial study on the proposed business ACT! Auto Repair Shop is a viable

business. The proponents projected that the initial capital requirements cost is Php 890,866.00

to operate the business. The proponents successfully created financial statements that will

represent the performance of the proposed business within the 5-year term. Assumptions are

used to determine the possible future revenues and expenditures of the company. The proposed

business is financially viable with a payback period of ten months.


CHAPTER V

MANAGEMENT STUDY

1. INTRODUCTION

Management aspect chapter describes the form of business organization that is best suited

for the proposed subject, the organizational structure, vision & mission of the business, the

number of personnel needed, their compensation and benefits, and the policies that the company

implements. It implies a clear and precise identification of duties and responsibilities, flow of

authority and manpower level requirement. It must be set up for optimum effectiveness.

A. Objectives

General Objectives

The main objective of this aspect is to determine the management feasibility of

Vulcanizing and Repair Shop’ Mobile Application.

Specific Objectives

 To determine the number of employees needed to operate the business.

 To enumerate the different positions, duties and responsibilities and

qualifications of the employees.

 To established a detailed compensation and benefits scheme for the employees

of the business.

 To define the vision and mission of the business.

Scope and Limitation

The scope of management aspect is all about the entire organizational

arrangement of the business with a clear and precise identification of duties and

responsibilities of qualified workers, management’s policy, flow of authority and


manpower requirement. It limits the nature of employees on how to handle by the

management through the policies and structure of the business.

B. Forms of Ownership

This business shall be named ACT! Auto Repair Shop and is initially established

as a partnership with three (3) stakeholders who engage in a business project by securing

contracts. Profits will be shared equally among partners and legal agreements will be

made that sets forth the decision-making, admission of future partners and dissolution of

partnership. Transfer of shares is subject for the unanimous approval of all partners.

There are three essential elements to a general partnership:

1. a sharing of profits and losses,

2. a joint ownership of the business, and

3. an equal right in the management of the business

A general partnership must satisfy the following conditions:

1. The partnership must minimally include two people.

2. All partners must agree to any liability that their partnership may incur.

3. The partnership should ideally be memorialized in a formal written partnership

agreement, though oral agreements are valid.

A general partnership is a business arrangement by which two or more

individuals agree to share in all assets, profits, and financial and legal liabilities of a

jointly-owned business. General partnerships typically dissolve when one partner dies,

becomes disabled, or exits the partnership. Provisions may be written into an agreement

that provides directives for moving forward during these situations. For example, the

agreement may stipulate that the deceased partner's interest is transferred to the
surviving partners or a successor. The taxation of a General Partnership is calculated at

the individual level.

Advantages of General Partnership:

 A general partnership faces simplified taxes. General partnerships do not pay

income tax. All profits and losses are passed through to the individual partners.

 A general partnership is easy to establish. Creating a general partnership is

simpler, cheaper, and requires less paperwork than a forming a corporation.

 There is an increased ability to raise funds when there is more than one owner.

 The increased skill set immediately boosts productivity and business’s

possibilities. It provides space to brainstorm, be more creative and share

innovation.

 Improved management with more than one owner.

Table 5.1: Owners’ Information

NAME NATIONALITY ADDRESS

ANGELES, DOROTHY JOY P. FILIPINO MARAGONDON,


CAVITE
CACAS, JOHN RAMEL T. FILIPINO TRECE MARTIRES
CITY, CAVITE
TOREGOZA, MOISES BRYAN J. FILIPINO DASMARINAS,
LAGUNA
Table 5.1 shows the names, nationalities and residences of the partners of the association.

C. Organizational Structure

The organizational chart is the graphical representation of the organization’s

structure. Its purpose is to illustrate the reporting relationships and chains of command

within the organization.


ACT! Auto Repair Shop
Owners

Project Manager

Officer in Charge Mechanic Marketing Assistant

Figure 5.1 Organization of ACT! Auto Repair Shop

The figure 5.1 shows that the ACT! Auto Repair Shop owners are the top management of

the business and is followed by the project manager handling the officer in charge, mechanic

and marketing assistant.

Personnel Qualification and Function

Job Title: Project Manager

Job Summary: Project Manager are responsible for planning, organizing, and directing the

completion of specific projects for an organization while ensuring these projects are on time,

on budget, and within scope.

An accountable project coordinator is responsible for all technical disciplines that a

project consists of. He/she will schedule, plan, forecast, resource and manage all the technical

activities aiming at assuring project accuracy and quality from conception to completion.
Specific duties and responsibilities:

 Project Management is all about communication, whether through emails, calls,

daily check-ins, or team meetings.

 Handle customer inquiries and respond to their needs in a cool, courteous and

prompt manner.

 Prepare the cost estimates including the services and repair costs and the cost of

spare parts, if needed.

 In order to ensure that the project remains on track, many project managers turn to

timesheets or a project management  that allows them to see how their team is

spending their time.

 A good project manager will do more than simply manage the steps of a project and

will also manage their team in order to keep them productive and happy.

Job Qualifications:

 Must be 18 years old and above.

 Proven working experience as a project manager

 Advanced MS Office skills

 Familiarity with rules, regulations, best practices and performance standards

 Ability to work with multiple discipline projects

 Project management and supervision skills

 Decision making ability and leadership skills

 Time management and organization skills.


Job Title: Officer in charge

Job Summary: Officer in charge will act as the assistant of the project manager and point of

contact for all employees, providing administrative support and managing employees and

client’s queries.

Specific duties and responsibilities:

 Develop business and marketing plans in coordination with project manager to

achieve revenue goals.

 Analyze the current and past budgets, expenses, sales, revenues and product

deficiencies in order to provide recommendations for business growth and problem

resolution.

 Research the market for identifying new business opportunities.

 Explain prospective clients about the advantages of the products or services offered

and follow up with them in order to close the business deals.

 Respond to the client queries regarding the products in a timely fashion.

 Develop business proposals for new and existing customers.

 Develop creative strategies to retain the clients including interviewing them to take

their feedback and incorporate it into the growth plan.

 Prepare the annual marketing budget and track the expenses against the budget.

Job Qualifications:

 Must be 18 years old and above.

 Must have at least a High school diploma; additional qualifications in Office

Administration are a plus.

 Solid knowledge of office procedures.


 Excellent written and verbal communication skills.

 Strong organization skills with a problem-solving attitude.

 Experience with office management software like MS Office (MS Excel and MS

Word, specifically).

 Attention to detail.

Job Title: Mechanic

Job Summary: Mechanic is generally responsible for the usage of inspecting and testing

equipment, performing preventive maintenance work, engine tune-ups, oil change, tire rotation,

filter replacement, tire change, wheel balance testing, cleaning, vehicle paining and detailing.

Specific duties and responsibilities:

 Inspect vehicle engine.

 Inspect mechanical and electrical components.

 Diagnose issues timely and accurately.

 Inspect vehicle computer and electronic systems.

 Conduct regular maintenance work such as replacing fluids, lubricating parts .

 Schedule future maintenance sessions.

 Advise motorists on good vehicle use.

 Offer products and services.

 Build relationships with customers.

 Act as an advisor and give useful advices for car maintenance.

 Maintain equipment and tools in good condition.


Job Qualifications:

 Must be 18 years old and above.

 Have experience as an auto mechanic.

 Must have a college diploma or at least an associate’s degree.

 Excellent verbal/written communication, problem-solving abilities and strategic

thinking.

 Excellent knowledge of mechanical, electrical and electronic components of vehicles.

 Have experience with vehicle diagnostic systems and methods.

 The ability to learn new technologies quickly.

 The ability to multi-tack.

Job Title: Marketing Assistant

Job Summary: Marketing assistant prepares compiling and distributing financial and statistical

information such as budget spreadsheets, writing reports, company brochures and similar

documents, organizing and hosting presentations and customer visits and assisting with

promotional activities.

Specific duties and responsibilities:

 Undertake daily tasks to ensure the functionality and coordination of the business

activities.

 Support in organizing various projects.

 Conduct market research and analyze consumer rating reports.

 Employ marketing analytics techniques to gather important data.

 Update spreadsheets, databases and inventories with statistical, financial and non-

financial information.
 Assist in the organizing of promotional events and traditional or digital campaigns and

attend them to facilitate their success.

 Prepare and deliver promotional presentations.

 Compose and post online content on the company’s website and social media accounts.

 Communicate directly with clients and encourage trusting relationships.

Job Qualifications:

 Must be 18 years old and above.

 Must possess at least high school diploma: BS in Marketing, Business or relevant field.

 Proven experience as a marketing assistant.

 Good understanding of office management and marketing principles.

 Demonstrable ability to multi-task and adhere to deadlines.

 Well-organized with a customer-oriented approach.

 Good knowledge of market research techniques and databases.

 Excellent knowledge of MS Office, marketing computer software and online

applications.

 Exquisite communication and people skills.

Table 5.2: Labor Requirements


Position Number of Employee

Project Manager 1

Officer in Charge 2

Mechanic 3

Marketing Assistant 1

Table 5.2 shows the number of employees that require for each position of the company.
Compensation and Benefits Program

Every employee in an organization is entitled with necessary compensation and benefits

program.

1. 13th month: The Company grants a 13th month pay equivalent to one (1)

month’s pay to all eligible employees provided that worked for at least one (1)

month during a calendar year. The thirteenth-month pay should be given to the

employees not later than December 24 of every year.

2. Sick Leave: Twelve (12) days for the first two years of service and additional 1

day every year starting on the 3rd year. Maximum total sick leave is fifteen (15)

days. All unused leaves will be given as incentives at the end of the year.

3. Holidays: Ten (10) paid national regular holidays and eight (8) national special

holidays per year as provided under Proclamation No. 555 (2019

Declared Holidays)

4. Vacation: Thirteen (13) vacation leave, with additional one (1) day every year

starting on the 3rd year of service and convertible to cash at the end of each

year. Maximum vacation leave is eighteen (18) days.

5. Management Proposal

5.1 Business Profile

Business profile is designed to be an overview of the business and the business

plan. It provides a quick overview of the business, including the values and objectives,

so to get information of what the business or service can offer. It is also a professional

introduction and aims to inform people about services, process and current status.
ACT! Auto Repair Shop is a job shop that provide professional auto repair,

maintenance services and other auto repair related services that will assist businesses,

individuals, households and non-profit organizations who owns automobiles in

ensuring that their automobiles are always in good shape.

5.2 Management Style

Management style is the particular way managers go about accomplishing

these objectives. It encompasses the way to make decisions, how to make plan and

organize work, and how to exercise authority. Also, Management styles are the

principles that underline the methods, abilities and techniques managers use in

handling situations and expressing leadership within an organization. It can vary

widely depending on the company, level of management, industry, country, and

culture, as well as the person themself.

Our Vision

ACT! Auto Repair Shop will be the preferred shop on Tagaytay City by

providing extraordinary customer that exceeds customer expectations.

Our Mission

Auto Repair exists to help our customers care for and extend the life of

their automobile investment.

Our Core Values

 Trustworthy

Can trust that company will provide an honest estimate for collision repairs.

 Rely on the competence of our technicians

Work with a worry-free warranty.


 Caring

Company cares about the details, and it shows in the precision of the work

and commitment to quality control.

 Hardworking

At ACT! Auto Repair Shop, the company work hard to repair the vehicle in

a timely and cost-efficient manner.

 Growing

ACT! Auto Repair Shop pays for the technicians to complete continuing

education to make sure to have the skills and knowledge it takes to make it

better.

 Generous

Go above and beyond competitive pay and benefits to ensure to have happy

team members who are happy to help the customers.

 Grateful

The friendly voices on the phone and smiles at the door let to know to

appreciate the business.

Safety Rule, Policies and Procedures

The safety rules contained on these pages have been prepared to protect in

daily work. Employees are to follow these rules carefully, review them often and

use good common sense in carrying out assigned duties.

General Safety Rules

 Straighten or remove rugs and mats that do not lie flat on the floor.

 Use the handle when closing doors, drawers and files.


 Obey all posted safety and danger signs.

 Use caution signs/cones to barricade slippery areas such as freshly mopped

floors.

 Do not block the view by carrying large or bulky items; use a dolly or hand

truck or get assistance from a fellow employee.

 Do not stand in front of closed doors.

 Clean shoes of ice, water, mud, grease or other substances that could cause

a slip or fall.

 Do not move faster than conditions allow on slippery surfaces or in

congested areas.

 Open one file cabinet drawer at a time.

Electrical Safety

 Do not use appliances and extension or power cords that have the ground

prong removed or broken off.

 Do not connect multiple electrical devices into a single outlet.

 Do not overload electrical circuits with multiple outlets.

 Turn off electrical appliances and equipment when not in use.

 Turn off and unplug office machines before adjusting, lubricating or

cleaning them.

Office Safety

 Close drawers and doors immediately after use.

 Do not kick objects out of the pathway; pick them up or push them out of

the way.
 Store sharp objects, such as pens, pencils, letter openers or scissors in

drawers or with the points down in a container.

 Keep floors clear of items such as paper clips, pencils, tacks or staples.

 Do not use extension or power cords that have the ground prong removed

or broken off.

 Do not connect multiple electrical devices into a single outlet.

 Do not throw matches, cigarettes or other smoking materials into trash

baskets.

 Keep doors in hallways fully open or fully closed.

 Turn off and unplug office machines before adjusting, lubricating or

cleaning them.

 Do not use frayed, cut or cracked electrical cords.

 Clean up spills or leaks immediately by using a paper towel, rag or a mop

and bucket.

Lifting Procedures

 Plan the move before lifting; remove obstructions from the chosen

pathway.

 If the load is too heavy or bulky, use lifting and carrying aids such as

hand trucks, dollies, pallet jacks and carts or get assistance from a co-

worker.

 Position the feet 6 to 12 inches apart with one foot slightly in front of the

other.

 Face the load.


 Keep the back of the body straight.

 Get a firm grip on the object with hands and fingers. Use handles when

present.

 Never lift anything if the hands are greasy or wet.

 Hold objects as close to the body as possible.

 Do not lift an object from the floor to a level above the waist in one

motion. Set the load down on a table or bench and then adjust the grip

before lifting it higher.

 Slide materials to the end of the tailgate before attempting to lift them

off of a pick-up truck. Do not lift over the walls or tailgate of the truck

bed.

 When practical, push objects into position for lifting, do not pull.

Shop Safety

 Use a flexible exhaust hose to vent engine exhaust to the outside when the

shop bay doors are closed.

 Remove dust and shavings from drum lathes with a dust pan and broom or

vacuum cleaner on a daily or job by job basis. Do not use bare hands.

 Dump gasoline and other liquid chemical waste into containers labeled

"Flammable Waste" from containers labeled "Flammable".

 When examining under the dash, use inspection mirrors. Do not twist the

body or maintain an awkward posture when trying to look under the dash.

 Wear gloves, safety goggles and a rubber apron when working in the

battery charging area.


 Direct engine hand tools away from rotating fan blades when the engine is

running.

Vehicle Safety

 Turn headlights on when driving inside the shop area.

 Shut all doors and fasten the seat belt before moving the vehicle.

 Before leaving the vehicle, engage the parking brakes and chock the

wheels.

 Do not approach any vehicle until the vehicle stops and the driver

exits.

 Walk behind the vehicle and remove any equipment, tools or other

pathway instructions before getting into the vehicle. Sound the horn to

alert nearby coworkers before backing the vehicle.

Tire Service

 Use the positive lock-down device to hold the wheel on the tire

machine before to attempt to inflate the tire. If tire is mounted on a

machine that does not have a positive lock-down device, perform

inflation in a safety cage.

 Inspect both sides of the tire to be sure that the beads are evenly

seated.

 After the beads are fully seated, adjust the tire pressure to meet the

operating pressure labeled on the tire sidewall.

 Replace a tire on a rim with another tire of exactly the same rim

diameter designation and suffix letters.


 Do not mount or use tires, tubes, wheels or rims that are split, cracked,

cut or contain signs of other structural defects.

 Wear leather gloves when removing rocks, glass and other foreign

materials from the inside of the tire.

Electrical Tool Safety

 Do not use power equipment or tools on which have not been trained.

 Keep power cords away from the path of vacuum cleaners, floor

polishers and grinders.

 Do not carry plugged in equipment or tools with the finger on the

switch.

 Do not carry equipment or tools by the cord.

 Disconnect the tool from the outlet by pulling on the plug, not the

cord.

 Turn the tool off before plugging or unplugging it.

 Do not leave tools that are "On" unattended.

 Turn off electrical tools and disconnect the power source from the

outlet before attempting repairs or service work. Tag the tool "Out of

Service".

Hand Tool Safety

 Do not use a tool if its handle has splinters, burrs, cracks or splits, or if

the head of the tool is loose.

 Do not use impact tools such as hammers, chisels, punches or steel

stakes that have mushroomed heads.


 Do not carry sharp or pointed hand tools such as screwdrivers, scribes,

aviation snips, scrapers, chisels or files in pocket unless the tool or

pocket is sheathed.

 Do not perform "make-shift" repairs to tools.

Automotive Lifts

 Remove all tools, cords, hoses, trash and any other debris from the lift

area and wipe up all grease and oil spills before driving a car or truck

into the service bay.

 Position the lift arms, adapters and supports to the center of the lift out

of the way of the car's tires before driving the vehicle into the service

bay.

 Do not use any lift that has cracked contact pads, cracked lift arms or

any other visible damage.

 Do not leave the controls unattended while the lift is in motion.

 Do not use the engine or transmission supports or stands as a substitute

for jack stands.

 Before lower the vehicle, remove tool trays, jack, engine and

transmission stands, and any other obstructions from under the vehicle.

 Before removing the vehicle from the service bay, position lift arms

and supports to the center of the lift away from the wheels of the

vehicles.

 Do not raise vehicle with anyone inside it.

Hiring Process and Procedures:


ACT! Auto Repair Shop believes that hiring qualified individuals to fill

positions contributes to the overall success of the company. Each employee is hired to

make significant contributions to the business.

1. Personnel requisitions

Personnel requisitions must be completed to fill ACT! Auto Repair Shop

positions. Requisitions must be initiated by the project manager, approved by the

company owners and then forwarded to the project manager and officer in charge.

Personnel requisitions should indicate the following:

 Position title.

 Position hours/shifts.

 Exempt or nonexempt status of the position.

 Reason for the opening.

 Essential job functions and qualifications.

 Any special recruitment advertising instructions.

2. Intake meetings

Intake meetings give recruiters the chance to get a clear picture of what hiring

managers want in a candidate, it's also an opportunity to provide insight around the

available candidate pool and competitive marketplace

Officer-in-charge will arrange a meeting with the hiring manager to conduct an

intake meeting prior to posting a job opening to learn more about the position, the

requirements and the profile of the ideal candidate. The recruiting strategy will be set

during this meeting and expectations established with all the key stakeholders.
3. Job postings

Officer-in-charge will create job postings that briefly describe the job opening

and service of the ACT! Auto Repair Shop. All job openings will be posted

concurrently on the company’s intranet and externally with sources appropriate for the

position being filled. Jobs will remain posted until the position is filled.

The Project manager with the assistance of officer-in-charge will be responsible

for tracking all applicants and retaining applications and resumes as required.

4. Internal applicants

Internal candidates are already part of the workplace, so the time that need to

find and engage those candidates is much less. It's also easier to assess internal

candidates. All applicants for a posted vacancy will be considered based on their

qualifications and ability to perform the job successfully. Internal candidates who are

not selected will be notified by the officer-in-charge.

5. Interview process

Interviewing is an important step in the employee selection process. If done

effectively, the interview enables the employer to determine if an applicant's skills,

experience and personality meet the job's requirements. In addition, preparing for

an interview can help clarify a position's responsibilities.

The project manager with the assistance of officer-in-charge will screen

applications and resumes prior to scheduling interviews. Initial interviews are generally

conducted by the project manager using behavior-based interview questions and a

structured interview process. Candidate evaluation forms will be completed after each

interview and retained with the application.


Requirements

 Medical Certificate

 Birth Certificate

 NBI Clearance

 Barangay Clearance

 Police Clearance

 Completely filled application form

Attendance Policy

Regular attendance and punctuality are vital attributes for all employees. It

is important for employees to attend work regularly and to arrive at work on time,

because failure to do so detrimentally affects employee morale and productivity

The policy of ACT! Auto Repair Shop is to establish reasonable and necessary

controls to ensure adequate attendance of employees and to meet business needs. The

officer-in-charge is responsible for creating work schedules of the employees.

Attendance/Punctuality

1. The Company expects that every employee will be regular and punctual in

attendance because ACT! Auto Repair Shop is twenty-four (24) hours operating

and ready for emergency service. This means being in the office, ready to work,

at their starting time each day. Absenteeism and tardiness place a burden on

other employees and on the company.

2. If the employees are unable to report for work for any reason, notifying the

officer in charge before regular starting time is a must. Employees are

responsible for speaking directly with the officer in charge about their absence.
3. Should undue tardiness become apparent, disciplinary action may be

required.

Absence Without Notice

 When an employee is unable to work owing to illness or an accident, please notify

the officer in charge.

 If an employee does not report for work and the company is not notified of their

status, it will be assumed after two consecutive days as an absent and will be removed

from the payroll.

 If an employee become ill while at work or must leave the office for some other

reason before the end of the workday, be sure to inform the officer-in-charge.

2. CONCLUSION

The ACT! Auto Repair Shop is a general partnership type of business that consists of

three business owners. The business is composed of a project manager and two officers in

charge. ACT! Auto Repair Shop will provide the detailed compensation and benefits to the

employees and believes that having qualified individuals to fill positions contributes to the

overall success of the company.


CHAPTER VI

SOCIAL ECONOMIC STUDY

1. INTRODUCTION

Socio-economic aspects and the environmental dimension, Socio-economic aspects

and the institutional or legal dimension. In a society, people basically try to fulfill their

needs by deploying various activities like production and trade. Socio-economic focuses

on the relationship between social behavior and economics. Social economics consists of

two broad perspectives that, though opposite in their approach, can be thought of as

complementary. 

The Socio-Economic aspect of the study includes the socio-economic benefits of

the proposed project and discusses the details of the responsibilities and relationship of

the business towards the society within which it operates. Nowadays, it is important that

small entrepreneurs should realize the worth of innovating and starting a business that

would largely contribute to the socio-economic development of the country.

A. Objectives

General Objective

To main objective of this aspect is to determine the socio-economic feasibility of

Vulcanizing and Repair Shop’ Mobile Application.

Specific Objectives

• To be able to prove that the proposed business will provide benefits to the people as

well as to the government.

• To determine the corporate social responsibility of the business.

• To be able to know the acceptability of the proposed study to the social economy.
Scope and Limitations

The scope of socio-economic aspect of the study is to assess the importance of

the business to its community and identify the factors that will best suit to the proposed

business and these factors are the Social and Economic Desirability and the Corporate

Social Responsibility.

The study limits only on the impacts of the factors directly to the City of

Tagaytay, Cavite and the economic acceptability of ACT! Auto Repair Shop in the

community.

B. Identification of Socio - Economic and Environmental Goals

It is anticipated that sectors like automotive, electronics and software or freight

transport will be positively affected while other sectors like insurance or maintenance and

repair will face significant challenges. Important labor changes lie ahead for professional

drivers, decreasing driving responsibilities towards new more technical roles.

Social Desirability Generation of Employment

The Philippines is seen booking the highest unemployment rate in Southeast

Asia. To be able to help the employees to meet their future needs. Working at a job,

vocation or career is one of the critical pieces for most of our lives. A job provides

income that need to pay for our basic needs. A job does more than provide income for a

person. A job also provides people with a sense of fulfillment, productivity, and

purpose. Job openings from ACT! Auto Repair Shop will give opportunities to the

unemployed people especially in Tagaytay City, Cavite who are starting to look for

jobs.

Revenue Generation
The ACT! Auto Repair Shop plans to offer different services in Tagaytay City,

Cavite, with this, identifying target market, good promotion strategy through print

advertisement and social media, the company will generate income at the same time

taxes will be paid as the business operates.

Economic Desirability Tax Generation

The business contributes to the government revenues in the form of taxes paid.

ACT! Auto Repair Shop will have the obligation to pay the right amount of taxes to be

able to help bear the government. The tax collected is used for the betterment of the

economy and all living in it. These tax payments from the business would help the

localities as well as the economy in its future project especially for people that will

benefit.

Corporate Social Responsibility

Every company manages their business processes to produce an overall positive

impact on society. Corporate social responsibility is the practice of integrating social

and environmental goals into business operations. The ACT! Auto Repair Shop will

conduct activities for employees such as seminar, trainings and team buildings. It may

also participate in activities such sponsoring or organizing a humanitarian donation.

c. Impact Assessment

Contribution to the Philippine Economy

The auto parts industry is facing competitiveness issues due to the absence

of economies of scale and a weak supply base. These are the fundamental issues

that must be addressed in order to strengthen the industry and integrate it with

regional production networks. To help firms achieve this, there is a need for


strategic industrial upgrading policy and carefully designed temporary subsidies

that would target improvement of firm competitiveness. As this business would

positively affect the income generation of the Philippine economy, this would

also encourage potential entrepreneurs to engage to such industry, and eventually

offer more job opportunities and increase employment rate as well. The

contribution of this proposed project is to add values to the income and savings of

the Philippine economy.

Contribution to Community

ACT! Auto Repair Shop will contribute to the community by bringing growth

and innovation in which the business was established. Job openings from the business

will helps to increase the economic growth by giving opportunities to the unemployed

people who are starting to look for jobs and to employed people who lost their jobs and

are looking for new ones. ACT! Auto Repair Shop may also participate in activities

such as sponsoring or organizing a humanitarian donation.

Conclusion

The ACT! Auto Repair Shop is not only for the profit purposes but also for the

improvement of the welfare of the people through integrating social and environmental goals

into business operations. Assessing the contribution of the business in providing benefits to the

economy, environment and community helps the business to have a high probability of success

and be accepted by the society.  People tend to have their vehicles serviced at a shop close to

their home or place of employment. So, in an area where new homes are being built or new

businesses are opening local business growth can be positively impacted.


CHAPTER VII

CONCLUSION

Marketing aspect

ACT! Auto Repair Shop is a business that provides vehicle repair and other services to

the customers. Revenues are generated from replacement part and mechanic labor sale. The

services can be in more detail, such as emergency or scheduled maintenance, brake repair,

transmission, wheel alignments, rims and tires and also comprehensive engine repair. The

researchers conducted a survey among 365 respondents from different motorists that are

travelling within Tagaytay City and gathered data to support the study. The researchers

determined that 64.4 % male and 35.6 % female respondents from 365 survey questionnaire

that is distributed within the Tagaytay City, the different age of the respondents within

Tagaytay City. 39.5 % is the percentage from age 22-26 years old, 23.6 % is the percentage

from age 27-31 years old, 12.1 % is the percentage from age 32-36 years old, 11 % is the

percentage from 17-21 years old, and the other percentage is 13.8%, the different educational

attainment of the respondents within Tagaytay City. 65.2 % of the respondents are college

graduate, 24.1 % of the respondents are undergraduate, 9.6 % of the respondents are high

school and below 5 % of the respondents are elementary, the employment status of the

respondents within Tagaytay City. 77 % of the respondents are employed and 23 % of the

respondents are unemployed, the monthly income of the respondents within Tagaytay City.

27.4 % of the respondent’s monthly income is Php 20,000 – 30,000. 25.2 % of the respondent’s

monthly income is Php 10,000 – 20,000. 23. 8 % of the respondent’s monthly income is Php 0

– 10,000. 10.7 % of the respondent’s monthly income is Php 50,000 and above and below 20

% of the respondent’s monthly income is Php 30,000 – 50,000, the respondent’s purpose for
visiting Tagaytay City. 67.7 % of the respondents are tourist, 16.2 % of the respondents are

work related, 9.6 % of the respondents are resident and below 10 % of the respondents are

visiting a relative, the vehicle that used of the respondents within Tagaytay City. 43 % of the

respondents used SUV/Sedan, 32.1 % of the respondents used motorcycle, 16.4 % of the

respondents used 4x4/Van, 7.4 % of the respondents used bicycle and below 5 % of the

respondents used truck/bus, 56.2 % of the respondents says sometimes and 43.8 % of the

respondents says always for visiting Tagaytay City, the respondents experience during trip in

Tagaytay City. 86 % of the respondent’s experienced problems during trip and 14 % of the

respondents not experience problems during trip, 58.6 % of the respondents calling for local

repair shop, 33.2 % of the respondents fixing it and below 10 % of the respondents do the other

thing on solving the problem during trip in Tagaytay City, 48.5 % of the respondents having a

problem in flat tires, 17.3 % of the respondents having a problem in overheating, 16.7 % of the

respondents having a problem in empty fuel, 8.2 % of the respondents having a problem in

dead battery, 6.6 % of the respondents having a problem in failing starter and below 5 % of the

respondents having a problem in other, this are the common problems that the respondents

encounter, the difficulties when in search for help in Tagaytay City. 87.9 % of the respondents

experienced difficulties in search for help and 12.1 % of the respondents not experience in

search for help and 97 % of the respondents says that the problem can solved by using mobile

application and 3 % of the respondents says that the problem can’t solve by using mobile

application.

The researchers determined that there is 100% gap between the demand and supply for

the services. ACT! Auto Repair Shop has no direct competitors that provide the same services.
Through this, the proponents sought the marketability of the proposed business to enter the

market. The Gross profit of the company will be derived from deducting all the costs.

Technical aspect

It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

There are three possible location for the business: Location 1 is at 154 Tagaytay –

Nasugbu Highway, Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas

Road, Alfonso, Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite,

Philippines. The ACT! Auto Repair Shop is located in a 00 sq. m at 1000 Luksuhin – Mangas

Road, Alfonso, Cavite, Philippines. The location was selected through considered rated using

Factor Rating. It appears based on the available information that Location 2 at 1000 Luksuhin –

Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.

The evaluated suppliers that have the lowest unit price offered for the is New Banawe

Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila, for the equipment is New

Banawe Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila also, and for the supplies

is Shopee.

The operating time of ACT! Auto Repair Shop is twenty-four (24) hours.

Financial aspect

The financial study on the proposed business ACT! Auto Repair Shop is a viable

business. The proponents projected that the initial capital requirements cost is Php 890,866.00

to operate the business. The proponents successfully created financial statements that will

represent the performance of the proposed business within the 5-year term. Assumptions are
used to determine the possible future revenues and expenditures of the company. The proposed

business is financially viable with a payback period of ten months.

Management aspect

The ACT! Auto Repair Shop is a general partnership type of business that consists of

three business owners. The business is composed of a project manager, two officers in charge,

technician and marketing assistant. ACT! Auto Repair Shop will provide the detailed

compensation and benefits to the employees and believes that having qualified individuals to fill

positions contributes to the overall success of the company.

Socio-economic aspect

The ACT! Auto Repair Shop is not only for the profit purposes but also for the

improvement of the welfare of the people through integrating social and environmental goals

into business operations. Assessing the contribution of the business in providing benefits to the

economy, environment and community helps the business to have a high probability of success

and be accepted by the society.  People tend to have their vehicles serviced at a shop close to

their home or place of employment. So, in an area where new homes are being built or new

businesses are opening local business growth can be positively impacted. 

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