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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

CHAPTER I
EXECUTIVE SUMMARY

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


EXECUTIVE SUMMARY
A. Introduction
The business proponent came up with PUP IKOT as the name of the
business.
Polytechnic University of the Philippines (PUP), being the home of Iskolar ng
Bayan, wants to establish again a product that will add to the marks of being
PUPian. Based on the ever familiar UP IKOT jeepney that goes around most of the
almost 500-hectare campus of UP, PUP IKOT will establish itself as a name that will
be the primary mode of transportation in the 10-hectare PUP Main Campus. It will be
perceived as one of the trademarks of the PUP Culture as the economical and
convenient transportation mode to take tour around the PUP Main Campus.
The PUP IKOT is a service business wherein its target market is the
commuters, specifically students at PUP, using public transportation. Given the big
campus of Polytechnic University of the Philippines, which has separate building for
some of its colleges which is considerably distant to each other, the public
transportation industry caters to a large portion of the students in the market.
Generally, the business will be established to provide an economic intercampus transportation system that caters its target market and of course, to earn profit
through service by means of transportation. Specifically, the project aims the following:

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

To establish another mark in the PUP Community Culture in the


field of public services.

To provide employment for licensed drivers as operators and for


the management team.

It provides a convenient way to transfer from one campus to


another on a low price.

PUP Ikot System. The PUP Ikot will operate in the main campus of the
Polytechnic University of the Philippines and all the other building that the student of
the said University occupied (namely PUP-College of Engineering and Architecture
Bldg., PUP-College of Communication Bldg., PUP-College of Technology Bldg., and
PUP-Hasmin Bldg.). For the IPUP Ikot System, it also includes one LRT station that
the said route will pass by, LRT2-Pureza Station.

Figure 1. Route area of the Inter-campus system

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


Head Office. The Head Office will be located at Albina St, Sta. Mesa, Manila.
The Head Office will be the core of the management functions and key business
decisions, for this will be the place where the strategic planning, communications,
human resource and other administrative tasks will be performed. The business
proponent decided to locate the Head Office within the route of PUP IKOT to closely
monitor the market and its operations. Commuters will find information about the
inter-campus transportation service offered, and inquiries will be entertained in the
head office. The parking lot of the multi cabs is located at Brgy 2225, Legarda St.,
Manila.
B. Market Summary
The market projection of the business is based on the relevant information
gathered from the questionnaires for the survey conducted within the target area
where the business is expected to operate. The demand, supply and sales are
projected. The factors related to the target market, such as the population and the
demand for public transportation are given the most attention. Another factor that is
the existing transportation systems the potential customers take or the competitors are
also examined. It showed that the target market is willing to patronize our service.
Based on the results of the study, the business will penetrate the market by its
8% market share. The business will contribute in reducing the demand gap from
11859 to 9156 by supplying 2703 of the demand. Also, the projected sales this will

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


business will generate is promising with average annual growth of 34.29%. This study
assumed the off-peak of the service during summer and semester break.
C. Technical Summary
A transportation service is provided by means of multicabs to be used in the
system. There will be seven 13-seater multicabs to travel within areas chosen for the
project. The office is preferred to have a sophisticated ambiance to give the
employees and guests a pleasant ambiance. Necessary furniture and fixtures to be
placed in the office are listed with their corresponding prices. Total project cost is
about Php 2.2 million. Considering operations, the business is feasible in this aspect.
D. Management and legal Summary
PUP IKOT is a cooperative type of business due to its advantages claimed in
operating small business with many direct competitors, as those may become
members and run the business as a group and not individually. The business will be
managed by the Board of trustees duly elected by its members. There will be five
personnel including the Maintenance: seven (7) drivers required for each multicab as
for start up Additional drivers will be hired as the business grows. All the requirements
for the operation are thereby followed. Given the organizational chart with the use of
technical knowledge of the owner, a smooth operation is expected from the business.
The business is feasible in this aspect.

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


E. Financial Summary
The investment requirement of Php2.25 Million will be funded by Php500 000
debt and Php1.75 million equity contribution of the members of the cooperative. Based
on the financial projections, conservative assumption and the financial mix it is
perceive that the internal rate of return is 20% which higher than 11% estimated cost
of capital. The investment is expected to be paid back within a 5 year period.
F. Socio-Economic Summary
The business commits to its contribution to help in the development of the
community or area that will be directly affected. It guarantees that it will perform its
responsibilities to its customers. Also it ensures that it will comply with the
requirements as they may be provided to them and to have an active participation in
the preservation of environment. The economic internal rate of return is equal to 23%.

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

CHAPTER II
MARKET ASPECT

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


MARKET ASPECT
Introduction
Marketing is a system of business activities designed to plan, price, promote
and distribute want-satisfying goods and services to present and potential customers.
It is considered as the lifeblood of every business transaction because it is a strategic
way on how cope with to the needs and wants of the customer, to find opportunities
regarding it, to introduce and market the product, to achieve customers loyalty and
patronage. This aspect includes the following topics: demand capacity, marketing
programs and the projected sales.
A. Objectives

To analyze the market demand and supply of the business;

To define the target customer of the business through market segmentation;

To determine possible suppliers and competitors;

To determine the marketing strategies to be applied in the business;

To determine the feasibility of the business; and

To formulate a competitive pricing strategy that will result to high profit.

B. Demand-Supply Analysis
1. Market Study
A market study was conducted to know if the demand for the
intercampus transportation system exists in PUP. The use of questionnaire serves as
written references about the actual information which are essential for the study. It is

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


far the most common instrument in collecting date. It consists of a set of questions
presented in a written form.
Survey questionnaire were used by the researcher for the purpose of gathering
relevant data and these questionnaire were randomly distributed to the respondents of
this study.
The information that has been gathered through survey forms will now be
tabulated to determine the possible demand and supply that the company should
establish in the continuous operation of the business. The data was

treated

statistically using the frequency and percentage (%) to identify the highest and lowest
ranks among the following issues that has been answered by respondents.
In Percentage, it shows the relationship of the part to its whole. Researchers
will be using this transform proportion to a per cent by multiplying by 100. The formula
would be:
%=

x 100

Where in:
% = Percentage
F = Frequency
N = Total number of respondents
Also, ranking is used in the study to identify the highest down to the lowest
number of frequency in some of the points in the market study where percentage is
not applicable.

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10

This section shall discuss the result of the study, based on the response of the
samples taken from the population.
a. Respondents Profile
The business wants to provide an affordable, accessible and convenient
means of transportation for the stakeholders of Polytechnic University of the
Philippines (PUP). Specifically, the proponents set the students of PUP as
their target market. Below is the segmentation of the students of PUP as per
building in the Sta. Mesa Campus.
PUP College
(as per building)1
Mabini Campus
PUP CEA
PUP COC
PUP Hasmin
PUP Institute of Technology
Total

Total Population of Students


per Building
25941
7,400
2,937
2,396
2,406
41,080

Table 1. Population of Students per Building


Based from the population total of 41080 as of 2014, the sample size of 400 respondents
was derived from the formula below:
n=

N
1 + Ne2

Where:
1

Source: Polytechnic University of the Philippines, Office of Admission Service, 2014

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


n = sample size
N = total population
e = % of error (5%)
The computed samples of 400 respondents consequently are
segmented as follows:
Building

No. of Respondents

Mabini Campus

53

PUP CEA

215

PUP COC

77

PUP Hasmin

47

PUP Institute of Technology

Total

400

Table 2. Market Segmentation of Potential Customers


It should be noted that the segmentation of the potential customers or
the respondents is not proportionate to the actual number of population in PUP.
The researchers obtain most number of respondents based on the perception
that most of the students in different buildings aside from the Mabini Campus
must be the most potential customers, since some of their classes are offered
in Mabini Campus. Therefore, they are the markets of the intercampus
transportation system since they will need a system to move from one building
to the main campus, and vice versa.

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b. Respondents Preference
Market study shows that not all PUP students take public transportation.
The table below shows the samples responses if they are taking a public
transportation or not.
Public Transport
Yes

Frequency
360

Percentage
90%

No

40

10%

Total

400

100%

Table 3. Respondents who are taking Public Transportation


The table above shows who among the respondents take public
transportation as their means of going to PUP. 90% of the respondents said
that they take the public transport. While the other 10% said they do not take
the public transport.
Also, costumers are given the options in what transportation system will
they take. And in choosing such transportation system, the costumers are
considering several factors, such as availability, affordability, security, and
convenience. The options or the factors given in the survey questionnaire are
based from the current transportation system that is presently available around
the PUP community that serves its stakeholders.
The table below shows the factors that they consider in choosing such
options, based on the conducted market study.

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Factors in Considering the
Means of Transportation

Frequency

Rank

Availability
Affordability
Security
Convenience
Others

240
241
43
151
11

2
1
4
3
5

Table 4. Factors in Considering the Means of Transportation


Based on the survey conducted, affordability is the main factor which the
customer considers in what transportation system to choose. Also, availability
consequently is in the priority of the customers. Convenience follows as the
customers need to find comfort during their trip.
In evaluating the market of the intercampus transport system, the
presently available means of transportation around the PUP Community must
be identified and studied. In doing such, potential competitors can be identified.
Given the wide range of transportation options that are previously present in the
vicinity, the researchers asked the types of public transportation that they
currently use. This is useful in identifying how the PUP IKOT can possibly
penetrate the existing market by its market share.
The table on the next page shows the results of the presently available
means of transportation around the PUP community that are identified by the
respondents, based on the conducted market survey.

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Type of Public
Transport
Taxicab

Frequency

Percentage

1%

Jeepney

163

41%

Tricycle

98

24%

PNR

50

12%

Pedicab

2%

No

42

1%

Others: LRT

24

6%

FX

2%

Bus

11%

Total

400

100%

Table 5. Types of Public Transportation Currently Use

The table 5 shows the different existing transportation system that the
respondents currently on their way to PUP and back to their location. 1% of the
respondents said they take the taxicab. 12% of the total respondents said they
take PNR. 41% of the respondents, being the largest, said they take jeepney.
2% of the respondents said they take pedicab. 24% of the respondents, being
the second largest percentage, said they take tricycle. 6% of the respondents
said they take LRT. 2% of the respondents said that they take FX. 11% of the
respondents said they take bus. While the other 1% of the respondents said
they do not take any form of transportation system to go directly to PUP.
The researchers consider the fact that pedicabs will be competitors since
they offer intercampus transportation service to the students. On the other

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hand, jeepneys are eliminated as competitor since they usually do not offer an
entire intercampus transportation service, unlike pedicabs and tricycles do. The
table below shows the attributes of the considered competitors.
Direct Competitors
Motorized

This is an indigenous form of the auto-rickshaw

Tricycle

Common means of public transportation in the Philippines

Public Utility Vehicle either ply a set route or are for hire

Service Offered
Means of transporting from one place to another with a range
of 4-5 persons
Rates
P8 for regular rate, and P35 for special trip.
Pedicab

A unique transportation in the Philippines.

Environment friendly type of transportation

Service Offered
Means of transporting from one place to another with a range
of 1-2 persons
Rates
P12 for regular rate, and 20 for special trip
Table 6. Direct Competitors

PUP Ikot as an intercampus transportation system that will serve the


stakeholders of PUP, the researchers identify the percentage of the market who
is transferring from one building to another or who are visiting the other
buildings in the campus. The table below shows the results.

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Respondents who visit
other building in the
campus
Visiting
Not Visiting
Total

Frequency
Percentage
334
66
400

83%
17%
100%

Table 7. Respondents who visit other building in the campus


The demand here for a transportation system around the PUP is
established. 83% of the respondents said that they visit other buildings in the
campus, showing that a need for a transportation system around PUP campus
exists. While the other 17% said that they do not visit other buildings in the
campus.
In lieu with the results above, the researchers also identify the frequency
of visitations of the respondents to one campus to another. This is to identify if
the intercampus transport system has its demand by the customers, mainly the
student.
The table below shows the results.
Number of times
Respondent Visit other
building in a week
Daily

Frequency

Percentage

82

21%

Twice

125

31%

Once

140

35%

Never

53

13%

Total

400

100%

Table 8. Number of times Respondent Visit other building in a week

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The frequency of the responses established from the previous table is
supported by the number of times the respondents visit other building in a
week. 21% of the respondents said they visit other buildings in the campus
every day, 31% of the respondents said they visit other buildings in the campus
twice a week. 35% of the respondents visit other buildings in the campus once
a day. The other 13% of the respondents said they do not visit other buildings
in the campus.
Also, the market was asked about their perception and opinion about
PUP IKOT. Specifically, the respondents were asked if they will patronize PUP
IKOT if the said system will operate within PUP.
The table on the next page shows the results.
Opinion on PUP Ikot

Frequency

Percentage

Patronize

352

88%

Will not Patronize

48

12%

Total

400

100%

Table 9. Respondents Opinion on PUP Ikot

The above table shows that 88% of the respondents said that they are
interested to patronize the system. While the other 12% of the respondents said
that they are not interested to patronize to system.

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Consequently, the researchers inquired the reasons of those who
responded negatively from the above question. The table below shows the
results.
Reasons for not
Patronizing
Satisfied on Current

Frequency

Rank

31

Not Comfortable

Inconvenient

Other Reasons

Table 10. Reasons for not Patronizing


Provided with choices, the most chosen reason is that they are already
satisfied with their current transportation system. Next is that they are not
comfortable with the system or they feel that it will cause inconvenience to
them. One common reason given by the respondents is that they are expecting
that a large number of PUP students will avail of the system.

2. Demand Gap Analysis


This section explains the demand, supply and their gap for the
intercampus transportation service offered by PUP Ikot. This section will show the
demand for the service in the Market or how it can penetrate the market and get a
sufficient market share.

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a. Demand Projection
The historical figures for the demand of the intercampus transport
system around the PUP Community are identified. The figures are
estimated based from the growth rate of the students in PUP, the
percentage of the students taking public transportation based on the
conducted market study, and the percentage of students visiting different
buildings in the PUP Sta. Mesa Campus.
The table on the next page shows the estimated historical demand for
the intercampus system.

Year Population
of
PUP
Students
2011
25,649
2012
30,009
2013
35,111
2014
41,080

% of Students
taking public
transportation

% of Students
visiting other
buildings

Historical
Demand

90%
90%
90%
90%

83%
83%
83%
83%

19,159.803
22,416.723
26,227.917
30,686.76

Table 11. Historical Demand for Intercampus Transportation System

Also, the projected demand that is expected for the next five years must
be assessed. Based from the computed growth rate for 17% per year, the
projected demand for five years is given below.

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Year

2015
2016
2017
2018
2019

Projected
Population of
Students in PUP
48,213
56,409
65,999
77,218
90,345

% of Students
taking public
transportation
90%
90%
90%
90%
90%

% of Students
visiting other
buildings
83%
83%
83%
83%
83%

Projected
Demand
36,015.11
42,137.52
49,301.25
57,681.85
67,487.72

Table 12. Projected Demand for Intercampus Transportation System


The demand for the intercampus transportation for the next five years
is shown here. Therefore, the increase of the population also calls for the
increase of the need for the intercampus transportation as well. Here, we
have established that there is a demand for the next five years, making the
service a need for the succeeding years.

b. Supply Projection
The historical data for supply is inquired by the researchers. This is
based on the assumption that there is an increase of 10% in the number of
units for both tricycle and pedicab, as inquired by the researchers through
responses for the tricycle and pedicab drivers near PUP.
The table below shows the schedule for supply in the past four years
based from the data gathered by the researchers.

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Year

Tricycle

Pedicab

Total

2011

14,876

1,623

2,8952

2012

16,364

1,785

3,1847

2013

18,000

1,963

3,5031

2014

19,800

2,160

3,8535

Table 13. Historical Supply for Intercampus Transportation Services

Also, the supply is projected for the next five years as follows:

Year
2015
2016
2017
2018
2019

Tricycle
21,780
23,958
26,354
28,989
31,888

Pedicab
2,376
2,614
2,875
3,162
3,479

Total
24,156
26,572
29,229
32,151
35,367

Table 14. Projected Supply for Intercampus Transportation Services


c. Demand Gap
Based on the data given above for the supply and demand for the year
2014, the table below depicts the figure of the computed demand gap.
Projected Demand

Projected Supply

Demand Gap

36,015

24,156

11,859

Table 15. Demand Gap for 2015

The demand gap of 11859, computed as the difference between the


projected demand and projected supply both for the year 2015, is shown here.

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This shows that there is a demand gap in the market, in which PUP Ikot can
possibly penetrate. Given this gap for 2015, the analysis of the effect of the
PUP Ikot entry on the market is shown on the table below.
Competitors

Supply

Supply of Tricycles

21,780

Supply of Pedicabs

2,376

Total Supply

24,156

PUP Ikot (supply)

2,703

Total Supply after PUP Ikot

26,859

Total Demand

36,015

Demand Gap after PUP Ikot

9,156

Table 16. Demand Gap Analysis after PUP Ikot entry


The analysis shows that upon the entry of PUP Ikot to the market shows
that it reduces the market gap from 11859 to 9156 by contributing 2703 of the
supply. This proved that PUP Ikot can penetrate the market by 2015, by having
its market share of 8% (2703 36015).

C. Marketing Strategy
1.

Service Description
It offers a service as a intercampus transportation system using Multicab

of Suzuki Corp., FB type. The vehicle is used for public transportation of

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23

passengers, with a capacity for 13 passengers and approximately could make


two successful rounds around the vicinity per hour.
2.

Place
The PUP Ikot will operate in the main campus of the Polytechnic

University of the Philippines and all the other buildings that the student of the
said

University

occupied

(namely

PUP-College

of

Engineering

and

Architecture Bldg., PUP-College of Communication Bldg., PUP-College of


Technology Bldg., and PUP-Hasmin Bldg.). The route is mainly discussed in
the technical aspect section of this study.
3.

Promotion
In promoting the business, the proponents intend to take advantage on

social media sites such as Facebook, Twitter, and Instagram. Also, in


achieving the objective of establishing PUP Ikot as part of the PUP culture
word of mouth will be one of the strategies to promote the service. Also,
barkers will be encouraged to promote the business.
The logo depicts the famous Pylon, where the acronym of the university
is placed. It is chosen to be included in the logo since it is one of the symbols
of the university. Beside the pylon is the maroon multicab, the equipment that
will be mainly use in the system. It is maroon; because PUPs symbolic color
is maroon. Finally a circle around the pylon and the multicab is placed as to
signify IKOT, or the act of going around the campus.

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

Figure 2. Logo of PUP Ikot

4.

Price
Pricing serves as the most critical factor which oftentimes affects the

marketability of the service offered by the business. However, the fare to be


imposed is Php 6.00 per passenger, following the LTFRB implementation on
jeepneys and multi cab for students fare.

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D. Risk Analysis Matrix
Given the analysis for the market of PUP Ikot, several risks are identified
as follows:
Risk Factor

Risk Description

Risk Mitigation

Risk
Assessment

Business
Interruptions

The Sales will be


expected to go
down if class
suspension occurs
due to typhoon,
flood, or rallies, or
any unexpected
disturbances
(rallies, fire,
earthquake, etc.)

Conservatively
assume provision for
possibility of class
suspension and
decline in revenue.

It is a noncontrollable
risk.

Possibility that the


market will remain
loyal with the
conventional
transportation
media

Assume optimal
number of multicabs
for start-up
operations.

It is a noncontrollable
risk.

Heavy traffic flow


is inevitable in
Manila. This may
be a risk factor,
since the students
might as well
decide to walk
rather than to ride
the jeep on going
to different
campuses. Most
likely, this might be
experienced during
rush hours.

Drivers must be
familiar of the place,
and as much as
possible, the
manager must decide
on alternative routes
in case traffic occurs.
This should be
discussed to the
drivers as well.

It is noncontrollable
risk.

Market
Share

Traffic
Management

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CHAPTER III
TECHNICAL ASPECT

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TECHNICAL ASPECT
Introduction
The main purpose of this study is to determine the overall technicality of the
operations of an Inter-Campus Transport System in Polytechnic University of the
Philippines. This will show the capacity of the project and will provide information
about the service activity to be rendered by the business to the customers. Also, it
involves the determination of the relevant cost for the establishment and operation of
this project.

A. Objectives

To explicate the proper flow of procedures for the operations of Inter-

Campus Transport System;

To enumerate the factors needed to be considered in terms of services

offered before putting up or planning to establish an Inter-Campus Transport


System;

To exhibit the lay-out of the proposed main route area of the System;

To itemize all necessary and complementary equipment needed in

operating the business; and,

To estimate all costs relating to acquisition and implementation of the

proposed project.

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B.

Service Process
I.

Route Area
The route area is measured about an average of 5.25 kilometers. From

PUP Main, it will turn left and go straight ahead to Anonas Street, where it will
reach the first stop, which is the PUP College of Communication Building.
Then, it will continue to go straight and will reach the second stop, the PUP
College of Engineering and Architecture Building. Then it will continue to go
straight ahead until it reaches the intersection of Anonas and Pureza Street, the
third stop where the PUP Institute of Technology Building is nearly located.
From here it will continue to go straight ahead again, and upon reaching
Valencia Street, it will turn right and head straight again until it reaches
Magsaysay Boulevard. Upon reaching Magsaysay Boulevard, it will turn right
and then straight ahead until it reaches the fourth stop the PUP Hasmin
Building. From there, it will continue to straight ahead until it reaches the fifth
stop, LRT Pureza Station. Then it will continue to go straight again and will turn
right when it reaches Old Sta. Mesa Street. Then go straight ahead again and
then turn right upon reaching Teresa Street, then it will go straight ahead until it
reaches the PUP Main Campus again. And it will go back to square one again. .
The PUP Ikot will operate 15 hours a day (6am-9pm) and 6 days a week
(Mondays to Saturdays).
Figure 13 on the next page illustrates how the transport route is
designed.

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Figure 3. Route Area of PUP Ikot


II.

Boundary and Office Location


A. Boundary
The daily boundary will be remitted at the main office by 9pm. Any
cab operator that failed to remit the boundary of the day will be have a
25%surcharge based on the boundary cost.
B. Head Office
The PUP Ikots head office is located 3020 Santol Extension, Sta.
Mesa, Manila the place which will be used for accounting of records,
budgets and costs, as well as administration of management tasks,
strategic planning, communications, and human resource. Figure 14

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on the next page shows the office location.

Figure 4. Office Location


III.

Equipment
Transportation Vehicle
The means of transportation that will be used in PUP Ikot is a 13seater Suzuki Multi Cab Scrum Cat Eye.

Figure 5. Multi Cab

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IV.

Main Office

Areas in the Office


a. Subdivision 1
Subdivision 1 is a lounge. This is where guests are to be
entertained and allowed to stay. This is also where the Accounting
Assistant and Treasury Assistant will stay.
b. Subdivision 2
Subdivision 2 is the managers place. This is where his job
is going to be done. This is also where important documents are
to be stored.

Installation of Equipment
The computer set with printer will be installed when delivered,
same with the telephone and internet connection that will be provided
by Globe.

Wall and Floor Finishes


For the floor finishes, the owner will use Ceramic Tiles to provide
pleasant and clean flooring. For the wall finishes, Latex Paint will be
used for Interior Wall and Ceiling. The preferred colors, artistically
combined, are white and pale yellow.

Layout Design
Guests will head to the lounge when they visit the office. This
is the first subdivision in the office. They will be entertained by the

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


manager or employee who is present during the day. A table and
three couches are provided. A table and computer chair is also
provided for the cashier to facilitate its work. There are shelves
available for other stuff. The second subdivision is the managers
office. A table and computer chair is provided for the manager. Two
drawers are placed in the corner for safekeeping of

documents.

There are also shelves available for other stuff. Figure 15 below
show the office layout.

Figure 6. Office Layout

Fire Prevention
To ensure protection in case of emergency, the office will have
already installed fire alarms. These fire alarms, when triggered, will
automatically sprinkle water to prevent the spread of fire.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


V.

Parking Lot
The Parking Lot is located at Brgy 2225, Legarda St., Manila. It is a

commercial lot where the cabs will be parked after the service hours, and can
be used when the cabs are under maintenance. The Parking Lot is separated
from the Head Office because the owner does not have capacity yet to buy a lot
for construction of main office building and a lot place for parking so instead
they will rent the parking lot space and the main office room separately.

Figure 7. Location of the Parking Lot

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


C.

Utility Requirements
1. Equipment Maintenance
There will be a monthly maintenance fee to be incurred to ensure
the safety of the cab that will be used. As the vehicle continues in
operation for years, higher maintenance costs will be incurred.
2. Office Maintenance
a. Electricity and Water Expense
Monthly electricity and water expense that will be incur by
the office during office works.
b. Telephone Expense and Internet Connection
Monthly Telephone and Internet Expense that will be incur
during the operations.
3. Prepaid Rent
The prepaid rent is composed of Office Rent and Parking Rent.

D.

Estimated Project Cost


The estimated project cost for the study is presented on the next page.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


Project
Component
Equipment
Office
Equipment
Furniture and
Fixture

Leasehold
Improvement

Description

Thirteen seaterSuzuki Multicab


Computer set with
printer
Computer chair

(years)
10

Unit
Qty
Cost
(in Php)
153,000 7

Total
(in Php)
1,071,000

20,000

40,000

2,500

5,000

Round Table
Sofa (3 persons)

7
7

2,000
6,000

2
1

4,000
6,000

Sofa (1 person)

2,000

4,000

Plant Display
Office Table
Wooden Shelves

7
7
7

250
2,500
1,200

2
2
4

500
5,000
4,800

Floor and Wall

37,000

37,000

120,000

840,000

Franchise
Sub-Total
Prepaid Rent

EUL

Office Rent
Parking Rent

Contingency
Total Project
Cost

Table 17. Project Cost

2,017,300
54,000
30,000
P105,065
P2,206,365

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


E. Risk Analysis

Risk Factor

Description

Proposed Mitigation

Risk
Assessment

Loss of

Wreckage of the

Applying insurance

Controllable

Equipment

Vehicle used in the

for the vehicle used

operation

in the operation

Inability to establish

Includes allowance

estimate for best

for conservative

Sampling

projection/

estimates.

Risk

assumptions.

Controllable

Refers to the

Proper checking of

Non-

Business

malfunction of

machinery every

Controllable

Interruption

equipment that lead

day before the

to disruption of

operation start

operation

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

CHAPTER IV
MANAGEMENT AND LEGAL ASPECT

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

MANAGEMENT AND LEGAL ASPECT


Introduction
For a newly formed business trying to enter into a competitive world,
management and legal study must be taken into account. This chapter includes the
type of ownership, the type of organization, its mission and vision, an organizational
chart that identifies the managerial positions for the first operational years,
management and employees duties and functions, and internal control established
throughout the system.
The purpose of the feasibility study is to determine if the business opportunity is
viable and practical for the commuters around PUP. To establish the organizational
efficiency, each employee must be a competitive.

A. Objectives

To determine the type of ownership of the business and its type of


organization

To describe the composition and flow of authority in the organization

To delegate employees duties and function.

B. Type of Ownership
PUP IKOT is a cooperative type of business due to its advantages
claimed in operating small business with many direct competitors, as those may
become members and run the business as a group and not individually.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


Members are committed to the business because they own the business and
pool resources together. The Board of Trustees will develop the policies on the
benefits of the members. This study will focus on the returns to be generated by
the business from its operations

C. Type of organization
Line organization is the oldest and simplest method of administrative
organization wherein the authority flows from top to bottom. This type has a
unified control that can be maintained since they bring out independently all the
decisions by themselves in their respective areas. Line organization
encourages the managers towards decision efficiency and productivity.

D. Mission
The business intends to accomplish the following objectives:
1. To provide customers with satisfying service that make them want to try
again.
2. To move customer conveniently at a lower price.
3. To serve customers with quality service giving them convenience on the
road.

E. Vision
To be a transportation service provider known for moving people safer
and being an advocate in preserving the environment.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


F. Organizational Chart
The managerial positions for the first operational years identified for
distinguishing the flow authority is illustrated below using solid lines for regular
personnel and broken lines for contractual personnel:

Board of Trustees

Fleet and
Maintenance
Supervisor

Maintenance
Personnel

Drivers

Administrative and
Finance
Supervisor

Accounting
Assistant

Treasury
Assistant

Figure 8. Organizational Chart


G. Management Duties and Functions
The business is primarily managed by board of trustees elected by members
and he has the following duties and functions:
1. Monitor the whole operations.
2. Developing and cascading the organizations strategy and mission
statement to the lower-ranking staff.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


3. Perform number of functions to achieve the objectives of the business.
4. Implement measure to provide motivation for employees
5. Planning by prioritizing customer, employee, and organizational
requirements.
6. Maintain and monitor staffing, levels, and expectations.
The fleet and maintenance supervisor must be responsible for the following
duties and functions:
1. Monitors and directs the daily activities of fleet management operations;
prioritizes work to be completed.
2. Interviews, trains and motivates employees, assigns and evaluates work,
and disciplines employees according to established procedures.
3. Inspects work areas to ensure safe and clean conditions are maintained
at all times.
4. Keeps in contact with other supervisors about the status of repair work
so they may reassign work if necessary.
5. Conducts performance appraisals.
The administrative and financial supervisor has the following duties and
functions:
1. Develop business plan, timeline and budget to perform financial
projects.
2. Monitor and manage expenditures within allotted budget.

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3. Develop and maintain standard financial and administrative procedures.
4. Work closely with General Manager in preparation of business plan and
operational budget.
5. Review all invoices and make the relevant payments in a timely manner.
For an administrative and financial supervisor who handles finance, human
resource and other administrative services, takes full responsibility as to the
accountability and quality of the service provided.
ROLES

JOB PROFILE

REQUIREMENTS

Accounting
Assistant

1. Creates financial transactions


including postings and
adjustments and creates
financial reports.
2. Reconciles accounts to
ensure accuracy.
3. Monitor fixed assets.
4. Calculates variances from the
budget and report significant
issues.
5. Maintain an orderly
accounting filing system,
annual budget and chart of
accounts.

1. Must have a degree in


accounting or business
administration and have a
working knowledge on
accounting software
package.
2. Must be productive and
has a good attention to
detail.
3. Must be hardworking and
trustworthy.
4. Must have a good
computing skill.
5. Must be capable of working
under pressure.

Treasury
Assistant

1. Compute cash beginning


balance.
2. Perform sorting, counting,
and wrapping currencies and
coins.
3. At the end of the shift,
compute the total cash on
drawers and balance.

1. Must have in-depth


knowledge of cash
drawer as well as
maintaining the same.
2. High-level of accuracy and
attention to detail.
3. Computer Skilled in
accounting software.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


On the other hand, the fleet and maintenance supervisor handles contractual
employees, repair and maintenance personnel and drivers. The supervisor indicates
the requirements and job profiles of a suitable worker for the specified roles.
ROLES

JOB PROFILE

REQUIREMENTS

Repair and
Maintenance
Personnel

1. Performs work
according to standard
procedure.
2. Cleans office and
cabs.
3. Follow all applicable
safety procedures.
4. Reports work
accomplished orally or
on written work.

1. Must have a TESDA


certificate.
2. Have a good knowledge in
technical operations.
3. Vision meeting the
appropriate standard, and
vision tests must be
conducted by competent
personnel.
4. Familiarity with the safety
requirements for the
operations.

Drivers

1. Receive payments for


service charge.
2. Receive payments for
the accessories by the
customers.
3. Process sales
transactions and
records.
4. Perform sorting,
counting, and wrapping
currencies and coins.
5. At the end of the day,
compute the total
payment.

1. Vision meeting the


appropriate standard, and
vision tests must be
conducted by competent
personnel.
2. Must have a valid drivers
license.
3. Have a wide knowledge
about the laws on driving
and in public roads.
4. No history of disabling
condition that hinders
excellent performance.

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H. Benefits and Compensation
A standard benefits and compensation referring to the minimum wage, holiday
pay, premium pay, overtime pay, night shift differential, service charges, service
incentive leave, maternity leave, paternity leave, parental leave (for solo parents),
leave for victims of violence against women and their children (RA 9262), thirteenthmonth pay (PD 851), separation pay, retirement pay, benefits under the employees
compensation program (PD 626), PhilHealth benefits (RA 7875, amended by RA
9241), Social Security Benefits (RA 1161, as amended by RA 8282) will be provided
by the company according to Department of Labor and Employment (DOLE) of the
Republic of the Philippines handbook on workers statutory monetary benefits.

Salaries and Wages


The amount of salary that will be given to the treasury assistant and

accounting assistant will be P10,000 monthly. On the other hand, fleet and
maintenance supervisor, and administrative and finance supervisor will receive a
compensation of P16,000 monthly. The employees shall receive their respective
salaries or wages as provided in their contracts of employment every other Saturday
which is biweekly.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

Mandatory Benefits
I.

13th Month Pay


It will be given to the employees at the end of the year. The
amount to be received by the employees shall be equal to their
monthly salary, which will serve as their 13th month pay.

II.

Paternity and Maternity Leave


Paternity and maternity leave benefits as provided by law shall be
given to every employee entitled thereto, upon complying with all the
requirements of the company and upon proper verification by the
companys duly authorized representatives.

III.

Social Security System


Republic Act 1161, known as Social Security Act of 1954 created
the Social Security System (SSS) that establish a social security
protection to workers in the private sector, wage earners as well as
self-employed persons.

IV.

PhilHealth
Philippines National Health Corporation, aimed to provide
employees

V.

with a handy means of paying sufficient medical care.

PAG-IBIG
Design to offer sufficient housing through effective savings plan to
its members. Its objective is to bring better housing packages in
terms of price

and development that will benefit its members.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

46

I. Internal Control
Internal control encompasses the companys assurance on objective for
operational

effectives

and

efficiency,

reliable

financial

reporting,

and

compliance with laws, regulations and policies.

Separation of Duties
Segregation of duties is critical to effective internal control since it
reduces the risks of mistakes and inappropriate actions. As treasury
assistant counts total coins and bills, accounting assistant has the
responsibility of maintaining journals and ledgers. Authorization is also
an important decision to approve transactions. If possible, managers
should assign three functions, authorizing transactions, recording
transactions, and maintaining custody of assets.
Custody of assets can be either: direct such as handling cash or
checking the state of Multi cab, or indirect such as preparing
reconciliations and reports.

Physical Protection of Assets


Safeguard prevent unauthorized personnel from accessing multi
cab. With the parking lot the owner considered, there is only one
entrance and those entering and exiting the lot must present a ticket.
Moreover, the cabs have locks on doors.

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


In the head office, computer software has passwords that protect
important information. The place to rent is also safe because it has
double lock.

Recruitment
The recruitment process is very strict, wherein it complies all the
standard qualities for the job position, in a timely and cost-effective
manner.
All applicants are required to submit and comply with all legal
requirements which include, but not limited to: NSO certificate of live
birth, NBI Clearance, Transcript of record and other school documents,
Cedula, Police Clearance, SSS, Health Certificate, and PAG-IBIG.

J. Company Rules and Policies


Establishes duties and responsibilities for each employee must remain to
as a condition of employment. Personnel policies and regulations are in place
as a guideline for appropriate employee behavior, and this will outline things
such as proper dress code, and harassment policies. Such policies outline the
procedures employers may utilize to discipline inappropriate behavior, including
warning or employee termination.
1. Compliance with all applicable laws, rules, and regulations.
2. Compliance with the companys policies and internal controls.
3. Protection of assets and accurate record-keeping.

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4. Truthful and ethical conduct, including the avoidance of actual or
apparent conflicts of interest.
5. Fair, ethical and polite treatment of the employees, owners, customers,
and communities.
6. Fair, full, accurate, timely, understandable reporting and disclosure of
information to parties entitled to that information, and reporting violation
of the Code of Business Conduct.

Lawful and Ethical Behavior


The principle of the Code of Business Conduct is to provide a statement

of certain key policies and procedures of the company for conducting the
business in a legally and ethically appropriate manner.
The management is responsible for promoting open and honest two-way
communications, and to be positive and role models who maintain high
standards of ethics and show respect and consideration for each of our
employees. In situation where the employee believes unlawful or unethical
conduct has occurred, even where it is not specifically discussed in this Code, it
is urging that the employee must report that matter to the management.

Conflict of Interest and Similar Matters


Employees are expected to keep away from situations that might involve

a conflict between their personal interests and the interests of the business. All
employees are required to disclose to their supervisor any situation that may be
a conflict of interest. The participation in any activity which could involve an

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actual conflict of interest requires the advance approval of the general
manager, such as bribes, use of information, and company opportunities.
Bribes: The receipt of any payment, loan, gift or other benefit by an
employee from a customer, supplier or other person having business dealings
with the company as an inducement to take actions favourable to such
customer, supplier or other person; or the making of any payment, loan, gift or
other benefits by an employee to any supplier, customer or other party having
business dealings with the company as an inducement to take actions
favourable to the company are prohibited.
Use of information: Disclosing, misappropriating, or using company
confidential information for matters unrelated to the proper performance of your
assigned duties is prohibited. This particularly includes information concerning
the companys proprietary technology, inventions, software, any improvements
of the foregoing, non-public business plans and strategies, non-public
information relating to sales, prospective sales or customers, or financial
information. Any information about the company is presumed to be
confidential until is made available to the public through the press, periodicals,
financial or business publications, or similar sources.
Company Opportunities: Using or disclosing to a third party any business
opportunity that is discovered through your relationship with the company
without first offering such opportunity to the company is prohibited.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

Business Practices
1.

Accounting and Financial Reporting


All the funds and other assets in transactions of the company

must be properly accounted, documented, and on time recorded in


conventionality with the companys accounting policies to enable the
preparation of timely management reports and to meet regulatory
reporting requirements. Company business records must always be
prepared accurately, reliably, and stored properly.
Any employee having information or knowledge of any hidden
fund or asset, false, artificial entry in the books and records of the
business or any inappropriate payment, or any complaint regarding
accounting, internal accounting controls or auditing matters should
promptly report.
2. Quality and Productivity
The quality remains a trademark of the companys services and is
a source of competitive advantage. A commitment to quality is a
commitment to a service that meets the top standards of performance,
and safety.
3. Safety and Health
The company and its employees are in charge for maintaining a
safe workplace by following safety and health rules and practices.
Employees should right away report accidents, injuries, and unsafe

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


equipment/practices to a supervisor or other designated person. The
company is committed in maintaining its vehicle free from hazards.

Equal Employment Opportunity Policy


1.

Employment Discrimination

The business is committed in maintaining a workplace free from


discrimination on the basis of any protected characteristics, including race,
color, national origin, sex, age, religion, gender, and other reason that will take
appropriate measures to prevent.
2.

Sexual and Discriminatory Harassment

The business will not tolerate, and will take appropriate measures to
prevent and stop any such harassment.

K. LEGAL AND TAXATION ASPECT


Starting a business includes the process of registration from different
government units. It is an important step that will allow the business to legally operate
and be duly registered. PUP IKOT needs to register the business to Department of
Trade Industry, get business permit from government of Manila and obtain permits
and licenses from Land Transportation Franchising Regulatory Board to make the
business legitimate.
Cooperative Development Authority (CDA). Since PUP IKOT is a service
cooperative, it needs to registered to CDA.CDA registered business name is one of
the important requirement to be able to register your business with the Mayors Office
and located at 5th Floors, BenLor Building, 1184 Quezon Avenue, Quezon City.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


Local Barangay Office. As required by the Local Government Code, all
businesses must obtain a Barangay Clearance from the local Barangay Office where
their businesses are located. A clearance assures that your business is a community
friendly establishment and conforms to the standards of the Barangay. This office will
issue the barangay business clearance. Obtain barangay clearance. To get this the
following are required: Application form, Business Name Certificate from CDA and the
fee to be paid. This clearance is required to get a business permit from the Mayors
Office.
Social Security System. PUP IKOT will be having employees to operate the
business. The business should register the business and employees to the SSS. This
is a requirement that must be done so that the business will not violate the Social
Security Law. Registering employees ensures that, as an employer, you are lawfully
remitting your employers contribution to the agency for the benefits of your
employees. SSS will issue an SSS number for the business, for the owner and the
employees,
Home Development Mutual Fund (Pag-IBIG Fund). RA 7742 requires all
SSS members earning at least 4000 a month to register with this agency. HDMF
administers the Pag-Ibig Fund.
Department of Labor and Employment (DOLE). A business with more than 5
employees must register with DOLE. The DOLE is asked to promote gainful

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


employment opportunities, protect workers and promote their welfare, develop human
resources, and maintain industrial peace.
Philippine Health Insurance Corp. (PhilHealth).The New National Health
Insurance Act (RA7875) requires all employers of the government and private sectors
and their employees to register with this agency. PhilHealth manages and administers
the government health care system.
Local Government Unit. After registering your business to CDA, Local
Barangay, SSS, HDMF and Pagibig, PUP IKOT is ready to register to the Manila
Mayors Office and acquire the business permit.
1. Obtain the Business Permit to operate. The permit affirms that your
business is in compliance to the municipality or Citys ordinances and
standards such as sanitary, fire and safety and other clearances. The permit
affirms that your business is in compliance to the municipality or Citys
ordinances and standards such as sanitary, fire and safety and other
clearances. To obtain a business permit, the applicant submits a business
transaction form (BTF) which contains vital information to process the
application and with these documents:
a. Barangay clearance;
b. SEC registration;
c. Authorization letter of owner with ID;
d. SSS certification/clearance; and
e. Contract of Lease

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


Land Transportation Franchise Regulatory Board (LTFRB). The company is
required to apply to the Land Transportation Franchising and Regulatory Board
(LTFRB) for permission to legally operate the route. The company is required to
submit the following:
a. Verified petition
b. TIN
c. Official receipt and registration of vehicle(s) with year and model
d. Proof of Filipino citizenship (birth certificate, voters affidavit)
e. Community Tax Certificate
f. Information Data Sheet
g. Valid certificate of business name issued by DTI
h. Certificate of bank deposit and passbook
i. Location map and picture of garage with dimensions, TCT/ tax
declaration or contract of lease with specific garage area
j. Zoning clearance for operators with at least 3 vehicles

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


L. Risk Analysis Matrix in Management and Legal Aspect

Risk Factor

Risk Description

Risk Mitigation

Abrupt
Separation

Sudden termination of
employees particularly
the drivers will affect
the operations of the
company.

Hire temporary
relievers to ensure
continuity in
operations

Fraud or
Irregularities

Management Override
and Employee
Collusion

Regular check and It is a


controls are in
controllable
place to mitigate
risk.
the risk

Protest of Other
Competitors

Tricycle and pedicab


drivers may not take
the competition very
well and create a
protest.

Competitors may
be asked to be
members of the
cooperative to
receive benefits
like its members

Risk
Assessment
It is a noncontrollable
risk.

It is an
uncontrollable
risk.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

CHAPTER V
FINANCIAL ASPECT

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

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B. Schedules and Ratios

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C. Risk Analysis of Financial Aspect
Risk Factor

Description

Mitigation

Assessment

Revenue
Prediction

Wrong estimation
for the
computation of
revenue

Make an
allowance for the
computation that
makes the
revenue not too
high or at its
maximum.

Controllable

Understated
expenses

Inability to identify
all the expenses
required resulting
to losses that
makes the
operation
discontinue.

Controllable
Categorize
expenses as to its
nature

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES

CHAPTER VI
SOCIO-ECONOMIC ASPECT

POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


SOCIO ECONOMIC ASPECT
Introduction
Conducting a business is not just all about the business. Considering its
responsibilities, being a part of the society, is important as well.
This will provide the effects to people directly affected by the business.
Discussed here are the perspectives regarding how the business can contribute ease
to the daily living of the drivers that will be hired, students, workers, residents and/or
the whole community where the business is expected to operate.
A. Objectives

To describe the benefits of the business to its community, and whether it


enhances the standard of living of the community it operates and to the
Filipino people as a whole.

To determine the contributions of the business to the Philippine economy.

To ensure the active participation in the maintenance of cleanliness in the


environment.

B. Developing Lives
Drivers. The business will provide a way for the drivers to earn for a living.
The income that will be derived from this can be a complement to their familys
needs. Giving a means for the drivers to bring home money to support their family
is just a good way of contributing ease to their daily living.
Students. The students within the area where the business is to operate
are the ones expected to benefit the most from the said business since they are

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


the target market. Since the new system will have a route different from what the
jeepneys have, specifically it can pass streets where jeepneys cannot; students no
longer need to walk a long distance. This contributes ease to the daily living of
students by way of bringing them nearer to their schools. This will help especially
when they are in a hurry or rush.
Workers. Along with the students, the workers either residing or working
within the area will also benefit from the said business. Same with students, this
system will help bring them nearer and more convenient to their workplaces.
Removing stress and being hassle free of the system contribute ease to daily living.
Members of the cooperative. In addition to their own job, they will receive
dividends from the service cooperative.
Community. The residents in the area will have a new means of
transportation that is accessible and an inexpensive one. The business will bring
them the places more conveniently.
C. Addressing Social Needs
People need to go from one place to another. For them to get to school,
their work, or any other place they would go, they need a means of transportation.
That is why the importance of these transportation means is known to us. This
business by providing a new means of transportation will contribute to ease the
living of those individuals. It is expected to give rise to new jobs for the drivers to
be hired and provie convenience for the students, worker, and residents of the
community.

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


Businesses are established for purposes. One thing is always given priority
that is how it will affect the people directly related with the business.
D. Contribution to Philippine Economy
The business assures that it will comply with the legal requirements and will
pay the necessary tax due, the other percentage taxes. Payment of taxes will help
the government support its functions.
The new revenue regulation of the Bureau of Internal Revenue (BIR)
imposes gross receipt taxes on public utilities. The business is expected to comply
with the required minimum gross receipts tax.
By the business compliance with the requirements, it can help the
government or the area where the business is expected to operate to promote the
general welfare of its residents or of the whole community and to conduct its
functions.
E. Environment Conservation
PUP Ikot ensures that it will conform to environmental laws, regulations,
standards and other requirements as may be required to them. It will secure
that its operations will be environment friendly. PUP Ikot will also exercise
Corporate Social Responsibility (CSR). It will maintain proper waste disposal in
the office to keep it clean and in order. It will use materials in the office that are
marked environment friendly. It will also try to recycle when it can do so. The
business will provide trash bins inside the multicabs to prevent the passengers
from throwing small pieces of trashes like candy wrappers and plastics outside

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


the window. The business will ensure that the muliticabs are in good shape so
that it will not emit any harmful elements or chemicals and that the multicabs
will not produce any noise disturbance. The goal of the business is to conduct
its operation with care to the environment and to not cause any harm to it.
F. Economic Rate of Return
The environmental costs that will be incurred by the business is subtracted
from the Free Cash Flows-Project. The Economic Rate of Return is computed as
follows:

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POLYTECHNIC UNIVERSITY OF THE PHILIPP INES


G. Risk Analysis Matrix of Socio-Economic Aspect

Risk Factor

Description

Mitigation

Assessment

Safety

Possible effects of
emission of smoke
from the cabs and
the noise
disturbance it can
cause to
individuals

Implementing
Regular check
and maintenance
of the cabs

Controllable

Public
Convenience

Inability to comply
with the rules that
pertain to the
environment

Strict
implementation of
rules and
imposing fines for
the violators

Controllable

Customer
Behavior

Those that will


smoke within the
office or inside the
cabs, littering
along the route
and inside the
vehicle

Display of No
Smoking and
No Littering
sign

NonControllable

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