Chapter I

The Problem and Its Setting

Introduction

The transportation sector, with its extensive use of

infrastructures, is one of the main factors that contribute

in the development of our economy. This holds true

especially in this era where economic opportunities are

focused on the mobility of people, goods and information.

Efficiency in the transport system provides economic

and social opportunities and benefits leading to better

accessibility to markets, higher rate of employment and an

intensified and dense flow of investments.

In relation with this setting, this feasibility study

aimed to provide trucking services devoted to the

distribution of sand that would contribute in the

development and growth of the infrastructure sector.

Trucking services constitute also one of the most

important aspects of the just mentioned transportation

sector. This type of business is classified as a delivery

service which consists in the employment of trucks for the

1
conveyance of articles or goods of any kind, in this case

sand. This often overlooked business is perhaps the most

vital component in the construction and infrastructure

sector which is an important index for the socio-economic

development of a country. In fact, the very purpose of the

proposed business is to contribute in the construction of

buildings and other infrastructures by transporting gravel

and sand to the construction sites. In other words,

transportation businesses are what keep the economy and

commerce of a country fast, flexible, convenient and

mobile.

For obvious and natural reasons the resources

available on our planet, such as gravel and sand, are not

always where we would like them to be, this is why people

need trucking services to afford the construction of

buildings and other infrastructures anywhere is needed.

Moreover, the proposed service is essential to the

development of the society and its flow of businesses

because economic activities cannot take place without an

infrastructure base.

2
Statement of the problem

This study aims to find out the feasibility of

establishing trucking services based in Cabanatuan City,

Nueva Ecija that will examine the management, technical,

marketing, financial, and social aspects of the business.

Specifically the study seeks to provide answers to the

underlying matters:

1. Marketing Aspect

a) Who will be the target market of the business?

b) Who will be the competitors?

c) What is the future total demand for the product?

d) What is the selling price set?

2. Management Aspect

a) What form of business organization will the

proposed project adapt?

b) What kind of organizational structure will the

proposed project adapt?

c) When is the start of business operation?

d) How many employees are needed for the project?

e) What kind of benefits will the employees receive?

3
3. Technical Aspect

a.) Is there a ready and appropriate location for the

proposed project?

b.) What are the fixed assets to be utilized?

c.) What are the necessary permits and licenses to

put up this project?

d.) What kind of tax should be applied for the

business?

4. Financial Aspect

a.) How much capital is needed to support the

proposed project?

b.) How will the proposed project be financed?

c.) What are the bases of the projected financial

statements?

d.) What will be the payback period and return on

investment of the project?

5. Socio-economic Aspect

a.) What are the social and economic benefits that

the society will get from the establishment of

business?

4
Significance of the study

This study, along with its results, is expected to be

beneficial to the following:

 The Researchers

The proponents will receive a major slice of the

benefits deriving from this study for they will acquire

valuable knowledge and experience related to the matter,

have their business acumen developed and their queries

answered.

 The Future Researchers

This study will give them a way to earn knowledge

and information regarding the delivery services that

might confer them some basis in conducting a research

related to the transportation sector

 The Students/Professors

This study will serve as supplementary reference

material in conducting future research and studies along

this line.

5
 The Prospective Investors and Future Entrepreneurs

This study will serve as a guide in their

preparation to undertake this line of business and the

development of performance for the proper management and

care of such an endeavor.

 The Government

The establishment of this proposed project may

serve as an important instrument for raising additional

revenue in form of registration fees, business taxes and

income taxes incurred by the business.

Scope and Delimitation

This study was conducted to establish a business of

trucking services in Nueva Ecija and it is delimited to

these business aspects; management, technical, financial,

marketing and social.

 Marketing aspect - determination of marketing

strategies

6
  Technical aspect – determination of product,

merchandise, services to be rendered.

 Management aspect - determination of needed manpower,

qualification and procedures in acquiring employees;

functions to be used by each personnel and determinate

what leadership style will be used to operate the

business.

 Financial aspect - source of funds and return of

dividends

 Social-economic aspect - determination on the benefits

of the business to the people and to the economy.

Definition of terms:

Bearing - is a machine element that constrains relative

motion to only the desired motion, and

reduces friction between moving parts. The design of the

bearing may, for example, provide for free linear movement

of the moving part or for free rotation around a fixed

axis; or, it may prevent a motion by controlling

the vectors of normal forces that bear on the moving parts.

Most bearings facilitate the desired motion by minimizing

friction.

7
Cab - Driver compartment of a truck or tractor.

Cargo Weight – The weight of the loads, gear and supplies

on a vehicle.

CDL – Commercial Driver’s License. Allows people to drive a

truck or bus that weighs more than 26,001 pounds and is

used in support of a business.

Chassis - A piece of trucking equipment which is

essentially a set of wheels on a lightweight frame.

Chocks - Block or stop barriers placed behind/in front of

the wheels of a trailer, or container, to keep the vehicle

from rolling.

Clutch Brake - The clutch brake is engaged when you push

the clutch all the way to the floor. You only do this when

you're stopped, and need to get the truck into gear.

Dock - A platform where trucks are unloaded and loaded.

Sand and gravel - are used for road construction, for

mixing with asphalt, as construction fill, and in the

production of construction materials like concrete blocks,

bricks, and pipes. It is also used to make roofing

shingles, used on icy roads in the winter, for railroad

ballast, and water filtration.

Service - Intangible products such as accounting, banking,

cleaning, consultancy, education, insurance,

8
expertise,medical treatment, or transportation. A valuable

action, deed,or effort performed to satisfy a need or to

fulfill a demand.

Site - Location, a point or an area on the Earth where the

sand and gravel take for delivery.

Six-wheel drive - is an all-wheel drive drivetrain

configuration of three axles with at least two wheels on

each axle capable of being driven simultaneously by the

vehicle's engine. Unlike four-wheel drive drive trains, the

configuration is largely confined to heavy-duty off-road

and military vehicles, such as all-terrain

vehicles, armored vehicles, and prime movers.

Ten-wheel drive - is a drivetrain configuration of ten

wheels, all of which are driven simultaneously by the

engine. Unlike four-wheel drive drive trains, this

configuration is only used in extreme off-

road and military uses, in particular heavy duty uses, such

a heavy haulage and missile carriers.

Ton - is a unit of measure. It has a long history and has

acquired a number of meanings and uses over the years. It

is used principally as a unit of mass. Its original use as

a measurement of volume has continued in the capacity of

cargo ships and in terms such as the freight ton. It can

9
also be used as a measure of energy, for truck

classification, or as a colloquial term.

Truck - is a wheeled vehicle for moving heavy articles. In

this case, it is used to deliver sand and gravel for

construction of infrastructure.

Chapter II

Related Literature

This chapter presents the literature and related

studies which have direct bearing on this study. The main

purpose of this review is to summarize related field of

interests coming from different media. In order to create a

solid background and to find out what has been done earlier

in this area, several articles and write-ups were used to

gather secondary data.

Local Literature

Solutions to Trucking Problems in the Philippines.

Freight companies in the Philippines regularly face

trucking problems such as traffic congestion, road blocks,

truck bans, unexpected (accidental) costs, shipping delays,

10
fuel price increase, etc. To help you win over these

difficulties, read and follow the ten solutions for

Philippine trucking problems below.

1. Always include an allowance for heavy traffic to your

travel time.

We couldn’t predict the flow of vehicles in the

Philippines – especially in Metro Manila. If

according to Google maps, the travel time to your

destination is just less than an hour, set at least

additional one hour for heavy traffic. This can help you

prevent delays and late deliveries.

2. Avail wholesale fuel products.

To limit the pain of fuel price increase, try to

contact fuel providers and ask them for the

wholesale price of fuel. It can help you save a few

bucks.

3. Stay updated on traffic, road and route-related news.

This can help you find faster routes or open roads.

4. Give customers a realistic shipping time frame.

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 Provide your clients with a shipping schedule that

you can surely meet. If you think you can send the cargo

in two days, disclose two to four days of delivery

schedule so you’ll have enough time for unpredicted

circumstances.

5. Properly maintain your vehicles.

It was proposed in 2015 to scrap 15-year old trucks

to decrease the number of vehicles in the country. Some

companies argued that trucks must be evaluated based on

their quality and not on their age. Hence, you must keep

your vehicles properly maintained to stay safe in case

the government mandates a law that would require “low-

quality” vehicles to be phased out.

6. Have at least an extra delivery vehicle.

Having extra vehicle(s) allows you to continue your

operations when the other vehicle is under maintenance.

7. Comply with customs requirements.

To stay away from legal charges, always comply with

the government’s requirements for shipping and trucking.

12
8. Be aware of truck ban dates.

Schedule the delivery and pick up before and after

the truck ban days to prevent paying fines and other

road penalties.

9. Be honest with your clients.

In case something happens to their cargo, do not

hesitate to tell them the truth right away. It’s better

to gain their respect and understanding through honesty

than lose them because of trying to protect your

company.

Source: Ernest Logistic Corporation, August 30, 2017.

Foreign Literature

Gravel and Sand: a general introduction

Sand and gravel are crucial resources for economic

development activities, such as road building and concrete

production. As a result, sand and gravel mining is a major

economic activity that is often carried out within river

channels and floodplains. Because annual extraction rates

often greatly exceed fluvial transport, these activities

13
lead to river bed incision, disconnection of the river from

its floodplain, depression of water table levels in the

alluvial aquifer, and sometimes a complete change in

channel style, for example from braiding to single thread

planforms.

Source: http://wiki.reformrivers.eu/index.php/Sand_and_gr

avel_extraction#Sand_and_gravel_extraction

Extraction

Sand and gravel is dredged from the seabed in various

parts of the world for, among other things, land

reclamation, concreting aggregate, building sand, beach

nourishment, and coastal protection. The largest producer

in the world is Japan at around 80–100 Mm3 per year, Hong

Kong at 25–30 Mm3 per year, the Netherlands and the UK

regularly producing some 20–30 Mm3per year, and Denmark,

the Republic of Korea, and China lesser amounts.

Source: C.M.G. Vivian, L.A. Murray, in Encyclopedia of Oc

ean Sciences (Second Edition), 2009

Hazards

Persons can be struck or run over when working near or

around trucks. Drivers can be injured if they lose control

of their trucks, or over-travel a dump point. Even if truck

14
accidents do not injure anyone, these mishaps often result

in damaged equipment, lost efficiency, lowered production,

and higher maintenance costs. Safe driving procedures are

generally the same for highway vehicles and for large over-

the-road haulage trucks. Off-road trucks, however, have

different hazards. Off-road truck drivers need to be

trained in special procedures for vehicle loading and

operation. In order to reduce dangers to the operator from

falling material, a truck should be spotted so that the

bucket of a front-end loader, shovel, or drag-line that is

loading the truck does not swing over the cab of the truck.

The operator should dismount and stand in a designated safe

area while the truck is loaded, if the truck does not have

a protective cab, or cannot be spotted to avoid swinging

the bucket over the cab. Mobile equipment operators, who

transport materials, must know haulage policies and

procedures. Signs must be posted at the mine site to show

traffic patterns and speed limits. Equipment that has an

obstructed view to the rear must be provided with a back-up

alarm. Modern, heavy-duty haul trucks are carefully

engineered, expensive pieces of equipment. These trucks

must only be operated by drivers who are qualified through

training and experience. Prospective drivers must

thoroughly familiarize themselves with the truck’s

15
mechanical features, safety rules, and emergency

procedures. Truck accidents caused by unsafe operating

practices outnumber truck accidents caused by unsafe

equipment conditions. Therefore, the time required for

effective training is well worth the effort. After drivers

have had appropriate training, and demonstrated safe

performance, constant supervision is necessary to make sure

that drivers continue to operate haul units in the way in

which they were instructed. Mobile equipment operators must

be especially cautious during bad weather. Potential

hazards include slippery ladders and platforms, slippery

haulageways, poor visibility, rock falls, and brake

failure. Frozen material in truck beds could cause the

truck to overturn while dumping.

Source: Module 10 - “Truck Haulage”, August 2000 by UNITED

STATES DEPARTMENT OF LABOR ELAINE L. CHAO SECRETARY MINE

SAFETY AND HEALTH ADMINISTRATION DAVE D. LAURISKI ASSISTANT

SECRETARY

Supply and Demand: The Future of Offshore Sand and Gravel

Mining

Offshore sand and gravel constitute a limited and

nonrenewable resource. The notion of supply is linked

16
strongly to the usage of the material. As such, a

distinction has to be made between the (reserves of)

primary aggregates, suitable for use in construction, and

the (resources of) secondary aggregates, which may include

contaminants, and used typically as in-filling material.

For example, in-filling sand is available in relatively

large quantities, whereas sand for construction, whose

demand for quality is comparatively higher, is not so

abundant. Gravel, which is also considered generally as a

high-quality material, is in short supply. In the UK

waters, the industry estimates that marine aggregate

availability will last for 50 years, at present levels of

extraction. However, such estimations are subject to

important fluctuations, due to limited knowledge of the

seafloor surface and subsurface. Furthermore, the level of

accuracy of the identification of the resource varies

greatly, from country to country (in general, data are far

more complete in countries that have a greater reliance on

marine sand and gravel). Another frequent difficulty toward

a reliable assessment of the supply comes from the

dispersal of the data relevant to the resource among

governmental organizations, hydrographic departments, the

dredging industry, and other commercial companies. In order

to tackle this issue, a number of countries are undertaking

17
seabed mapping programs, dedicated to the recognition of

marine aggregates deposits. These programs range from

detailed resource assessment, to reconnaissance level of

the resource.

The precise estimation of the future demand for

aggregates in general, including marine sand and gravel, is

not an easy task. Difficulties arise from the highly

variable and changing character of a number of parameters,

such as the construction market and other economic factors,

political strategies, environmental considerations, etc. In

addition, the estimates can be distorted by extensive

public work projects, involving large amounts of material.

Moreover, the predictions should consider the exports and

imports of material, and, therefore, take into account the

demand at a much broader scale than the national one alone.

Few countries have published estimates for the future

demand of aggregate (only the UK and the Netherlands, in

Europe).However, in a number of countries, on-land

aggregate mining takes place within the context of

increasing environmental pressure and the depletion of the

resource. At the same time, large parts of the coasts, on a

worldwide scale, experience increasing coastal erosion.

Therefore, it is expected that the future marine sand and

gravel extraction is bound to increase, in order to supply

18
high-quality material and to provide the large quantities

of aggregates required for the realization of large-scale

infrastructure projects designed to manage coastal retreat

and accommodate the development of the coastal zones (i.e.,

beach replenishment, dune restoration, foreshore

nourishment, land reclamation, and other coastal defense

schemes). Hence, in order to find these new resources, it

is expected that the activity will move farther offshore,

within the next decade.

Driver Shortage

One of the largest issues influencing the driver

shortage is the demographic of the current workforce,

primarily age, and gender. The trucking industry relies

heavily on male employees, 45 years of age or older.

According to the Bureau of Labor Statistics, the

average age of a commercial truck driver in the U.S. is 55

years old. With an alarming amount of these drivers

retiring within the next 10-20 years, we are quickly

approaching a dangerous cliff. A cliff that, if fallen off

of, will hit the industry hard if new, younger workers

aren’t hired into the industry. This has proved to be

difficult, though, as the Federal requirement states you

must be 21 years old to hold an Interstate Commercial

Divers License. This leaves a 3-year post-high school gap,

19
where possible employees become distracted by new

employment opportunities.

Another major demographic issue is that the industry

is really only tapping into a little over half of the

workforce population. Women make up 47% of the nation’s

workforce but only account for 6% of commercial truck

drivers. The problem here is changing the stereotype that

the trucking industry is a macho job, for macho men. To

better convince women that they are welcome, carriers need

to make it clear that women are not only wanted but needed

in the truck driver career pool.

The Truck Driver Lifestyle

The next topic that’s important to address is the

lifestyle of a truck driver. For many, this lifestyle isn’t

ideal and steers people away from even considering a career

as a truck driver. Most drivers, when new to the industry,

are assigned to routes that keep them on the road for

extended periods of time, returning home only a few times a

month. Adapting to living in a truck, and showering at rest

areas can be difficult.

20
 Being on the road non-stop also limits the driver’s

options when it comes to nutrition. No one can binge on

fast food and gas station snacks without some health

consequences. Not to mention, combine that kind of eating

with the sedentary lifestyle of a truck driver and the

pounds will keep packing on. This high calorie, high sugar

diet can lead to major health problems such as diabetes,

high blood pressure, and digestive issues.

Sleep deprivation is another chronic problem truck

drivers face. With the pressure to get their freight to its

destination as quickly as possible, drivers often skip

sleep breaks. This not only affects the driver physically

but mentally as well. Mental fogginess, poor judgment, and

forgetfulness are all side effects which can make drivers

more prone to accidents.

How to Solve the Truck Driver Shortage

Due to the complexity of the driver shortage, there is

no one solution. Below are a few marketplace responses and

potential policy solutions that could reduce the driver

shortage:

 Increase Driver Pay – Just as we are experiencing now

with gas prices, the natural market reaction when there

21
 is a shortage of a good or service is to increase the

price. In this scenario, that price would be truck driver

wages. Most carriers have been offering pay increases,

coupled with a comprehensive benefits package and

401(k)/tuition reimbursement options.

 Decrease Time on the Road – Increasing time at home and

decreasing time on the road, can take so many of those

“lifestyle” issues out of the equation. With the LTL hub

& spoke system and increased distribution centers, this

makes LTL more desirable by decreasing the average

length-of-haul and keeping our truckers more localized.

 Lower Regulated Driving Age – The 18-20-year-old group

has the highest rate of unemployment of any age bracket.

Having the age minimum of a commercial truck driver set

at 21 eliminates a large pool of competent workers from

filling open positions.

 Target Minorities, Women and Veterans – To effectively

address the driver shortage, trucking companies should

look for ways to entice more women, minorities, and

veterans. Minorities and Women are an overwhelmingly

under-represented group within the trucking industry.

22
 Veterans is another source of “low-hanging fruit” as many

are looking to transition into fulfilling careers.

 Autonomous Trucking – With the advanced technology

autonomous trucking brings, along with the benefits of

reducing daily driving stress and boredom, it’s sure to

attract young, tech-savvy drivers to the industry.

 Utilizing Less that Truckload Shipping – On the Road

(OTR) and full-truckload (FTL) shipping methods are where

the majority of the driver shortage takes place, as these

methods require a lot of time on the road and that hard

truck driver lifestyle. LTL and parcel driver’s, on the

other hand, come home every night.

Source: http://ltxsolutions.com/truck-driver-shortage-cause

s-problems-solutions/

Justification of the Study

The researchers diligently worked to search for any

materials to support and create the foundation of the

study. As a result we have found out that the proposed

project is highly feasible and viable.

23
 Chapter III

Method of Research, Sources of Data and Statistical

Instruments

This chapter presents a brief discussion of the

research method used, method used in gathering data as well

as the procedures adapted to test the viability and

feasibility of the proposed project.

Methodology

24
 Descriptive method of research is applied in this

study in which the researcher studies the relationships of

the variables. These variables are those things that vary

in quantity and quality, which are to be manipulated by the

researcher. These variables include age, sex, population,

adequacy, efficiency, etc. These are considered raw data on

materials gathered that will be used for statistical

analysis.

This method was found to be the most applicable method

of research to use for this study because it gives a better

and clearer understanding of the phenomenon that may

contribute to the progress of the proposed project.

Research Locale

The research was conducted within the city of Cabanatuan.

The Sample Size

The total target population of 116 hardware and

contractors is used to project the total number of

respondents in the survey. Using the Slovin’s formula, the

researchers arrived at a sample size of 90 respondents as

shown below:

25
N= 116 (number of hardware and contractors)

E= 5% (margin of error)

N
n = (1+Ne²)

Respondents

The respondents of the study were the owners of the

hardware and the engineers/contractors in Cabanatuan City,

Nueva Ecija.

Techniques used in gathering data

The following methods were used in order to gather

data:

 Interview method

 Questionnaire method

 Observation method

 Library and internet method

Interview Method

The Researchers conduct interviews with the personnel

in different companies and with the personnel in some

existing trucking business in order to obtain the fully

detailed information and data to be used in this study.

26
 The interview method is one of the most effective

methods of collecting original data. It can give complete

information needed in the study. The interviewers can be of

great help to the respondents in answering questions, which

the respondents could not understand. Through interview

method, it can yield inaccurate information since the

interviewer can influence the respondent’s answers through

his facial expressions, tone of voice or wording of the

questions. The interviewer may cheat by turning in

dishonest responses if their expected or desired responses

are not obtained.

Questionnaire

The questionnaires are distributed to the respondents

of this study to determine the feasibility and viability of

the proposed business.

The questionnaire method is one of the easiest methods

of gathering data. The questionnaire must be allotted with

sufficient time of preparation to make it more attractive.

The illustrations, picture, and other sketches may be

included in preparing questions. The contents of the

questionnaire, especially the directions must be precise,

clear, and understandable.

27
 The reason why this method is usually used is because

of the following reasons:

 It is less expensive because it can be distributed

personally or by mail it can give confidential

responses since the respondents can answer the

questionnaire privately.

 It is less time consuming since it can be distributed

over a wider geographical area in a shorter period of

time.

 Te answers obtained are free from any influence from

interviewer or other respondents.

On the other hand, the questionnaire method has the

following limitations:

 It cannot be accomplished by illiterates (no read, no

write persons)

 It has a high portion of non-response or non-return

 It tends to give wrong information since answers

cannot be corrected right away.

 The answers for the questions may be incomplete.

Observation Method

28
 The observation method is utilized to gather data

regarding the attitudes, behavior, vales, and cultural

patterns of the respondents under investigation.

Library and Internet Method

These methods are great sources of information

especially in the absence of the first hand information

that are very important in the study. Other information was

obtained from the books, newspapers, encyclopedia and other

liable reading materials in order to provide the

researchers with a wider and deeper knowledge while

conducting the study. The internet, as a result of wide

technologies, provided the researchers with quick and

reliable access to the information needed for the progress

of the proposed business.

Financial Analysis

Financial analysis is used to measure and evaluate the

performance of the business. Through examining, testing,

and dissecting the financial aspect of the proposed

business, one will be directed toward establishing a

business or not. Through the use of ratio, the questions

29
regarding the profitability and feasibility of the study

will be answered.

The researchers have used the following formulas in

computing the ratios of the following:

1. Payback Period – It measures the length of time

required to recover the amount of initial investment.

This is the time interval between time of the initial

outlay and the full recovery of the investment.

𝐈𝐍𝐈𝐓𝐈𝐀𝐋𝐈𝐍𝐕𝐄𝐒𝐓𝐌𝐄𝐍𝐓
𝐏𝐀𝐘𝐁𝐀𝐂𝐊𝐏𝐄𝐑𝐈𝐎𝐃 =
𝐀𝐍𝐍𝐔𝐀𝐋𝐈𝐍𝐂𝐎𝐌𝐄

2. Return on Investment – It measures the overall

efficiency of the proposed business in managing the

return of investment to the owner/s. The ratio

indicates the amount of profit earned relative to the

level of investment.

𝐍𝐄𝐓𝐈𝐍𝐂𝐎𝐌𝐄
𝐑𝐄𝐓𝐔𝐑𝐍𝐎𝐍𝐈𝐍𝐕𝐄𝐒𝐓𝐌𝐄𝐍𝐓 =
𝐓𝐎𝐓𝐀𝐋𝐀𝐒𝐒𝐄𝐓𝐒

3. Net Present Value - It is the difference between the

present value of cash inflows and the present value of

cash outflows over a period of time.

NET PRESENT VALUE = PV OF CASH INFLOWS/ PV OF

INVESTMENT

30
 Chapter IV

Presentation, Analysis, and Interpretation of Data

Marketing Aspect

Marketing is a very important aspect in business since

it contributes greatly to the success of the organization.

Production and distribution depend largely on marketing. It

31
is the process of introducing and promoting the product or

service into the market and encourages sales from the

buying public. Since the goal of marketing is to make the

product or service widely known and recognized to the

market, marketers must be creative in their marketing

activities.

One of the most useful part of feasibility study is

the marketing aspect. Without marketing sales may crash and

companies may have to close. Success of the business

depends on how the product is introduced to the potential

market.

Marketing Strategy

The strategy of the proposed business is simple, it is

to provide and maintain the highest level of safety

throughout its operation, and a quality service that the

company needs. Total quality handling and transportation

service will be provided. Excellence in quality is

something that must be created and nurtured. Therefore, all

that is done is customer oriented and the service

procedures are continuously updated and improved based on

customer feedback. The proposed business will hire

responsible drivers and helpers that will deliver the sand

and gravel safely and on time, and the employees will build

32
up a harmonious relationship with their coworkers and

customers as well.

Service

The proposed business will consist in offering

logistics services focusing mainly on the delivery of

gravel and sand.

Pricing

The services provided will be charged based on cubic

meters delivered and kilometers covered following a ratio

of ______ percent of the purchase price of the seller and

P____ per kilometer.

Place

The business transactions will be conducted in

Cabanatuan City and the main office will also be in

Cabanatuan. The researchers designated Cabanatuan City as

main area of operations because of the recent emphasis on

efficient and effective urban zoning, designing and

infrastructure. The city development program got off the

ground. New and alternative roads, bridges, school

33
buildings, modern integrated drainage, sewerage and water

treatment facilities were constructed to complement

existing facilities for telecommunications, water, electric

supply, and transportation. Because of this development new

businesses were set up in the city. As the city development

continues, the need for sand and gravel in Cabanatuan also

continues to rise.

Promotion

The adopted promotion will consist mainly of printed

advertisements such as flyers and posters.

Market Analysis

The target market is composed of hardwares and

contractors in Cabanatuan City. The proposed business will

target those hardwares and contractors who needs sand and

gravel.

YEAR POPULATION 93.33%* 94.44%* 95.56%* 88.89%*

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 THINK IT
ACQUIRE THINK IT IS
WILL WILL
GRAVEL AND PRACTICAL
INCREASE PATRONIZE
SAND TO ACQUIRE
SALES

2018 116 108 110 111 103

2019 116 108 110 111 103

2020 116 108 110 111 103

2021 116 108 110 111 103

2022 116 108 110 111 103

2023 116 108 110 111 103

Table 1 & 2: Demand Analysis

POTENTIAL EFFECTIVE
POPULATION ANNUAL
CUSTOMERS DEMAND
YEAR EFFECTIVE
100% (CUBIC
75% DEMAND
METER)

2018 116 87 125,007.13 1,500,085.56

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 2019 116 87 126,519.00 1,518,228.00

2020 116 87 129,012.16 1,548,145.92

2021 116 87 131,334.38 1,576,012.56

2022 116 87 133,567.06 1,602,804.72

2023 116 87 135,770.92 1,629,251.04

*values representing segments of the population are rounded

off

Table 1 & 2 show the annual demand for sand which is

based on the respondent’s answers from the researchers’

questionnaire.

In the first table the total population is grouped into

those who acquire gravel and sand, those who think it is

practical to acquire gravel and sand, those who think that the

acquisition of gravel and sand would increase sales, and those

who will patronize the services proposed.

The second table shows the potential number of customers

who will avail of the proposed services. This amount is obtained

by consecutively multiplying the total population by the four

percentages obtained from answers on particular questions from

the researchers’ survey that indicate interest in the proposed

services.

Table 3: Supply Analysis

YEAR POPULATION SUPPLY PER MONTH SUPPLY PER YEAR

2019 16 77729.28 932751.36

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 2020 16 79260.5468 951126.562

2021 16 80687.2367 968246.84

2022 16 82058.9197 984707.036

2023 16 83396.4801 1000757.76

Table 3 shows the total supply provided by the

existing competitors in Cabanatuan City expressed in cubic

meter.

Table 4: Demand Gap

DEMAND GAP (in cbm)

YEAR DEMAND COMPETITORS DEMAND GAP
1 1,518,228.00 932751.36 585,476.64
2 1,548,145.92 951126.562 597,019.36
3 1,576,012.56 968246.84 607,765.72
4 1,602,804.72 984707.036 618,097.68
5 1,629,251.04 1000757.76 628,493.28

Table 4 shows the demand gap existing between the

current and the forecasted demand and supply expressed in

cubic meter.

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 Table 5: Demand Capacity

ANNUAL DEMAND CAPACITY PER CUBIC METER

PRODUCT Year1 Year2 Year3 Year 4 Year 5

Sand
18720 18720 18720 18720 18720
(cbm)

Table 5 shows the maximum capacity of the proposed

business to supply its services to the population.

Table 6: Market Share Analysis

DEMAND
DEMAND GAP
YEAR CAPACITY MARKET SHARE*
(cbm)
(cbm)

1 18720 585,476.64 3.20%

2 18720 597,019.36 3.14%

3 18720 607,765.72 3.08%

4 18720 618,097.68 3.03%

5 18720 628,493.28 2.98%

*market share value is rounded off to two decimals only

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 Table 6 shows the market share of the proposed

business which is obtained by dividing the total capacity

of the proposed business by the demand gap computed in

table 4.

Management Aspect

This section will discuss the form of business

organization that is best suited for the proposed business,

its organizational structure, the policies regarding the

personnel and the projected time table.

Because of its basic yet fundamental functions,

management constitutes the bedrock of every business that

plans to leave a mark in its industry.

Management is a dynamic life-giving element that

supports the business throughout is whole life cycle.

A good and effective management can pave the way to

the success of a business by bringing human and material

resources together and motivate people for the achievement

of common goals.

A. Business Organization

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After taking in consideration the (4) forms of business

organizations, sole proprietorship, partnership,

corporation, and cooperatives, along with their

respective pros and cons, we arrived at the conclusion

that the proposed business shall adopt a sole

proprietorship form of business.

A sole proprietorship is a business structure owned by

only one person, which is the ideal for this type of

business where the owner has to be strictly involved in

the direction of the operations and oftentimes

personally involved in the field.

There are even some case in which the owners of

trucking services started their business as the driver

of their own trucks.

Moreover, this form of business allows the owner to

dedicate all his resources to the growth of the business

without being exposed to the bigger risks that may be

brought by a corporation type of business.

Advantages of Sole Proprietorship taken in

consideration:

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Ease of formation. Starting a sole proprietorship is

much less complicated than starting a corporation, and

also much cheaper.

Easy to discontinue. If the owner cannot continue

operations, he can terminate the business quickly, even

though he will still be liable for all outstanding

debits and obligations.

Total decision making authority. Being the only

proprietor, the owner has total control and power over

his own business and its operations.

Tax benefits. The owner of a sole proprietorship is not

required to file a separate business tax report.

Instead, they will list business information and figures

within their individual tax return. The business will be

taxed at the rates applied to personal income, not

corporate tax rates.

Disadvantages of Sole Proprietorship:

 Possible lack of ability to manage

 Difficulty in raising in capital

 Limited life

 Unlimited liability for the proprietor

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 In short, the trucking business can be very

profitable, but also incredibly competitive, that is why

as rational researchers, we came up with the conclusion

that there is no need to start big and end up in failure

such as many over ambitious truckers; instead, a safer

and gradual approach is believed to be more suited to

this type of business.

B. Organizational Structure

Organizational structure provides guidance to all

employees by laying out the official reporting

relationships that govern the workflow of the company. A

formal outline of a company's structure makes it easier

to add new positions in the company, as well, providing

a flexible and ready means for growth.

Structure also determines how things will be done

within your organization. This is an area in which a

well-developed org chart is helpful. It shows who does

what, and who answers to whom. Employees have job

titles, which, in turn, have job descriptions that

delineate responsibilities. How everyone interacts and

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what they do within the organization should support the

mission and the top priorities of the organization.

Manpower Requirements

The proposed business will employ just two trucks and

a bookkeeper. The owner will act as the business’s

manager.

With regard to hiring of drivers, the manager shall

hire knowledgeable and experienced persons to minimize

incidents and futile expenses during operations.

Below is the organizational structure of the proposed

business:

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 Manager/Owner

Driver I Driver II

Figure 1: Organizational Structure

MAAAAAARRRRRVSSSSS!! LAGYAN MO NG HELPER HA.

HELPER 1 AND HELPER 2 SA ILALIM NG DALAWANG DRIVERS

(ONE HELPER FOR EACH DRIVER FOR A TOTAL OF TWO HELPERS

AND TWO DRIVERS)

Qualifications of Personnel.

Manager/Owner

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 He must have the ability to finance the investment

requirement.

 He must known how to manage accounts and monitor

finances.

 He must have the ability to supervise and direct his

personnel.

 He must know the qualities of the products to be provided

bu the business.

 He must know how to maintain a good working environment

within his employees and customers as well.

Drivers

 Male, single or married

 Must have a professional driver’s license

 At least 25 years of age and not exceeding 45

 Must know how to drive different kinds of vehicles

 Must be in good physical condition

 Good moral character

Job Description

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Manager/Owner: he is the one who oversees the personnel’s

performance towards their specified job and handling the

customers’ needs. He communicates who will render the

service and satisfy the company needs.

Drivers: they are the ones accountable for the delivery of

goods. They are also responsible of the safety of the

product and of the their timely delivery.

Hiring Procedure

The manager will be responsible for the hiring of

personnel. They will be hired according to the

qualifications mentioned.

Salaries and Compensation Scheme

The salary or compensation is the responsibility of the

owner. He is tasked to make sure that all workers get a

fair share or compensation according to capability and

financial resources of the company.

Table 7

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 Position Monthly salary Head Total Monthly

Count Salary

Driver P 1,000.00/delivery 2 P 30,000.00*

Helper P 400.00/delivery 2 P 12,000.00*

TOTAL *at maximum capacity P 42,000.00

C. Legal Requirements

 Register with the Department of Trade and Industry

(DTI) the business name.

 Register with the Bureau of International Revenue

(BIR) the book of accounts and business forms to be

used.

 Mayor’s business permit - for getting the license to

operate in the city or municipality and payment of

your local business taxes.

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Management during Operating Period

The following are the activities which should be taken

before the actual operation of the proposed business:

Table 8: Gantt Chart

J A S O N D J

Activities U U E C O E A

L G P T V C N

Conceptualization of Feasibility Study

Feasibility Analysis and Final Draft

of the Study

Fund Sourcing

Registration and Legalization

Site analysis

Selection of Equipment, Furniture and

Fixtures

Hiring and Training of Personnels

Actual Operation

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Technical Aspect

This technical aspect aims to describe and define the

area and location of the proposed project, and it also

consists of the acquisition of the necessary equipment, the

building plan and the overhead expenses incurred during the

operation of the business.

Business Layout

The layout of business is design by the proponent

themselves which will be consisted of the parking area and

a small office.

The parking area and the main office will be located

in Cabanatuan City. Various equipment will be equipped in

the main office and trucks will be parked at the parking

site.

Figure 2: Floor Plan

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Plant Location

The main office will be located in a commercial space

along Circumferential Road in front of Loft Cafe,

Cabanatuan City while the trucks will parked in a

commercial space/warehouse situated in Kapitan Pepe,

Cabanatuan City.

Figure 2.1: Parking Area (front view)

Figure 2.1.1: Vicinity Map (parking area)

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Figure 2.1.2: Vicinity Map (parking area)

Figure 2.2: Office

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Figure 2.2.1: Vicinity Map (office)

Figure 2.2.2: Vicinity Map (office)

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Process of Operation

The operation of the business to be undertaken will

start upon the completion of the necessary equipment in

starting up a business.

The operation of the business will start from the

completion of requirements, then acquisition of equipment

and hiring of employees. After receiving the order to

deliver from the customers, the trucks will load the sand

and/or gravel from the designated quarries and then proceed

to deliver to the customers.

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Contractors/Engineers MLA Trucking
Agent

Hardware

Quarry

Figure 3: Flow of Operation

Business Logo

Figure 1

Figure 1 shows the logo of

the business named “MLA

Trucking. The name came from

the first letter of the

surnames of the researchers,

Mariano, Lanzona, and Aquino.

Furniture and Fixtures

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 Description Item Quantity

Office Chair 1

Office Table 1

Sofa set 1

Filing Cabinet 1

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 Equipment

Computer Set 1

Printer 1

Other Asset

10-Wheeler Truck 2

Socio-Economic Aspect

The proposed business “Trucking Services: Gravel and

Sand” will bring satisfaction to its customers, who are

looking for quality gravel and sand for their houses,

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building, roads, and any other infrastructure. The business

is not just a profit-oriented organization which the

primary concern is to make profit. But, this aspect

discusses the benefits that the business might contribute

to the government, society, and to economy.

Contribution to the Government

The business and the business owner will pay taxes as

provided by the law. Taxes coming from the business help

the government to generate funds for the improvement of

public services and government projects. This service is

not just to bring funds to the government just like the

other businesses but it also give the direct material

needed such as “gravel and sand” for construction of their

projects.

Contribution to the Society

The proposed business helps the “Build, Build, Build

Project” of the government. This proposed service provide

convenience for them because of the huge amount of gravel

and sand needed and this is why trucking services are

essential for the development of the society.

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Contribution to Economy

The proposed business will benefit the economy through

providing employment. This will lessen the rate of

unemployment rate in the place where the business will be

established. It helps the hired employees and their family

to have their sources of income. That customers income will

keep the economy active. And this business keeps the

economy and commerce of a country fast, flexible,

convenient and mobile.

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