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Presented to the Faculty of College of Business and Administration


Main Campus

In Partial Fulfillment of the Requirement for the Degree


Major In Financial Management


June 2020



According to rediscover (2017). From the foundation of our homes to our skycrapers,

from our community centers to our bridges transit ways, and all other indispensable

infrastructure installations (water treatment plants, dams offshore oil production platforms) that

are essential to our society’s ability to function efficiently, we rely on concrete every day. There

are concrete products for all types of applications and construction needs. And each and every

one of these products shares concrete’s fundamental sustainability attributes. A list of the

national and provincial associations and institutes representing the broad spectrum of concrete

manufacturing in Philippines available in the about section of this portal.

According to International Journal of Modern engineering Research (2015), One of the

basic requirements of human being to sustain in the world is shelter. The concept of stability

and safety as per structural features of shelter were completely out of mind. With the

development and maturity of human mind, man began to modify the structural formation of

shelter so as to address the increasing needs and facilities which an optimum shelter design

possessed. After achieving a feat by the use of easily available material like mud in

construction walls and then the technique of burnt clay brick masonry to form structural part

of shelter, there was still a long journey is coming out for the best possible material for

construction of stable and safe structural units of shelter.

Challenges encountered are the biggest obstacle for the success of those construction

firms. The desire for search of safe and stable structural materials keeping in view the economy

of whole structure, paved way for usage of hollow concrete blocks. Now a days, Hollow

Concrete Blocks (HCB) and bricks are becoming very popular. These blocks are being widely

used in construction of residential buildings, factories and multi-storied buildings. These

hollow blocks are commonly used in compound walls due to their low cost.

The stability plays an important role but the best designer is one who comes out with

design which gives the stable and economics structure. The development of the construction

technology is closely related to development of adequate mechanization and handling

technology. But focusing on this strong demand obscures a more precarious reality. Underlying

challenges in productivity, profitability, performance, labor, and sustainability could derail the

industry’s growth.

According to Leeds (2016), Concrete product industry is at a crossroad, companies that

address these challenges head-on and re-imagine their business processes will be poised for

significant growth. Businesses that fail to take the challenges seriously, however, will face an

uphill battle for viability.

The reason why researcher have conduct this study is to know the challenges

encountered, product quality and financial performance of concrete product producers in


Research Gap.

The reason why the researchers conduct this study is to know the challenges

encountered, product quality and financial performance of concrete product producers in

Statement of the problem.

This study aimed to determine the Challenges Encountered, product quality and

financial performance of concrete product producer in SAMARICA, Occidental Mindoro.

It specifically the study sought to answer the following questions:

1. What are the challenges encountered by producers of concrete product in SAMARICA in

terms of:

a. Customer Service;

b. Personnel Management; and

c. Production and Operation?

2. What is the level of quality of concrete product producers in SAMARICA in terms of:

a. Durability;

b. Appearance; and

c. Thickness of Concrete?

3. What is the level of financial performance of concrete product producers in SAMARICA in

terms of:

a. Management;

b. Liquidity; and

c. Profitability?
4. Is there a significant relationship between the challenges encountered by concrete product

producers in SAMARICA in the savings and its financial performance?

5. Is there a significant relationship between the level of quality by concrete product producers

in SAMARICA in the savings and its financial performance?

Objectives of the study

This study aimed to determine the challenges encountered, quality of products and

financial performance concrete product producers in SAMARICA, Occidental Mindoro.

1. To identify the challenges encountered by concrete product producers in SAMARICA in terms

of Customer Service, Personnel Management and production.

2. To determine the level of quality of concrete product produce in SAMARICA in terms of

Durability, Appearance and Thickness of concrete.

3. To determine the level of performance of concrete product producers in SAMARICA in terms

of Management, Liquidity and Profitability.

4. To measure significant relationship between the challenges encountered and product quality by

concrete product producers in SAMARICA in savings and its financial performance.

5. To determine if there significant relationship between the level of quality by concrete product

producers in SAMARICA in the savings and financial performance.

Significance of the study

Cement concrete hollow blocks have an important place in modern building industry.

They are cost effective and better alternative in construction materials. The importance lies in

achieving a strong, dimensionally stable, which is key to the block’s strength. Not only are they
used as building blocks for the construction of foundations they are also cost-effective solution

in the development of:

Factories and industrial halls. This study helps them to know the best design to with stands

strong winds and form architectural structures to make a concrete walls.

Schools. This study helps them to know the solid choice and right amount foundation of hollow

blocks are great investment for generation to generation.

Hospitals. This study helps them to know the potential to create rooms with full security

because the thick characteristics that help the sick people rest in a quiet way.

Offices. This study helps them to determine the toughness of hollow blocks to protect the

offices and build it properly.

Buildings. A structure with a roof and walls, such as a house, school, store, or factory. It means

any structure intended for the shelter, housing, or enclosure of persons, animals, or materials

associated with the primary use of the site.

Future researchers. This study will serve as their basis for further research and study. It will

be beneficial to those who intended to conduct the same research and it will serve as their ready

reference. They can get from this research work some ideas which are related to studies.

Businessman. This study will help the owners of the hollow blocks and concrete making

businesses to identify the possible strategic way of their competitors and to give them some

idea from researchers.

Scope and Limitation

This study was conducted at SAMARICA only, study focused mainly on the challenges

encountered, product quality and financial performance of concrete product producers. The
respondents of this study were the persons involved in the Hollow Blocks and Concrete making


Conceptual framework

The independent variable of the study is the problem encounter of hollow blocks

making in San Jose Occidental Mindoro in terms of customer service, personnel management,

productions and operations. And product quality in terms of durability, appearance, thickness of

concrete. Dependent variable is the financial performance in terms of cost of equipment,

facilities expense, labor cost/compensation.

The conceptual framework of the study is shown on the research paradigm below:

Independent Variable Dependent Variable

Challenges Encounter

Customer Service

Personnel Management
Financial Performance
Production and Operations



Product Quality



Thickness of Concrete
Fig. 1. Researcher paradigm

Operational Definition of Terms

The following terms are defined conceptually and operationally used in this study to

help the readers understand the term clearly:

Financial performance. This refers the subjective measure of how well a firm can use

assets from its primary mode of business and generates revenues.

Durability. This refers the ability of concrete to resist weathering action, chemical

attack, and abrasion while maintaining its desired engineering properties. Different concretes

require different degrees of durability depending on the exposure environment and properties

desired. The importance of concrete durability cannot be underestimated.

Appearance of Concrete. Is a controversial subject among developers, architects and

building contractors, impossible to avoid pores in concrete. The material can behave

unpredictably, which means that the size and number of pores can vary. So too can the

perception of what is acceptable.

Thickness for Concrete. Concrete is typically applied at a thickness of 2 inches or

more, but the ticker it is, the stronger the slab will be. Four inches is most common for a slab.

The thinner applications would include drivers, walkways, slabs and footers, just to name a
few. With this type of application, both a fine and coarse aggregate are required. Products

labeled high strength concrete mix are ideal for these types of applications.

Production. Customer satisfaction is a key pillar of our quality policy. To maintain our

leadership in the market by consistently exceeding the requirements and needs of all our


Management. This refers to dealing with or controlling things or people. It is the act of

getting things done through others and having them do it.

Liquidity. This refers to determine the capacity of an entity to meet financial

obligations as they mature.

Profitability. This refers the capability of an entity to generate financial gain or revenue

in excess of cost.


This chapter presents the related literature and studies both foreign and local sources

that provide background information of the subject.

Challenges Encountered

According to TA Harrison, Independent Consultant and Visiting Industrial Professor,

University of Dundee (2016), There are still a number of challenges facing the Concrete

Industry. From a political and social viewpoint, improving the sustainability of concrete

construction has to be the first challenge, not because concrete solutions are poor when

compared with alternatives, but due to the volume needed for the modern economy. To get a

fair comparison of alternatives, sustainability has to be at the level of the structure and include

all three pillars of sustainability. Finding a system for combining the different indicators is

essential if sustainability is to be assessed correctly and in a holistic and comparative way.

A technical challenge is developing a practical, robust, reliable and cost-effective

method of specifying durability by performance. There are still unanswered questions that

require further research. These include the development of test methods, the relationship

between performance in the test and performance in structures, and the impact of normal

variations in production on the results of standard tests. There are issues that are known about

and solutions are available, but they still blight the Concrete Industry. These are the
uncontrolled addition of water on site and the failure to achieve the specified minimum cover in

the structure.

With the increasing number of cement types, additions and different aggregates, the use

of maximum w/c ratio and minimum cement content as the main means of achieving acceptable

durability becomes questionable and specifiers are seeking to specify durability by

performance. How to provide a technically sound, cost-effective system for specifying

durability by performance is another challenge facing the concrete sector.


According to TRP Ready Mix, (2016) An important public relations element to building

and branding one’s company is to develop relationships with customers. A business specializing

in the sale of concrete must be able to gain the customer’s trust and maintain the company’s

reputation. Contractors can do this by solving problems in a timely and efficient manner. As a

customer looking for the best concrete ready mix company to help you with your project, you

will want to ensure that the supplier you choose treats you as though you are their only


In an industry where the finished product tends to look the same, you shouldn’t have to

settle for less than a company that provides you with great customer service. Look for signs

that they really value their customers’ experience, such as an efficient website, and a polite

staff. For ready mixed concrete companies, balancing the priorities of operating efficiently

against delivering excellent customer service can be challenging. As companies focus on

improving operational and dispatch efficiency, the customer experience can diminish. And in

providing an excellent customer experience, efficiency is often sacrificed.

Jones (2010), Since most producers operate in markets where customers have choices,

producers should try to identify and operate in the “sweet spot” between efficiency and

customer service. This is where service and efficiency are in balance – where the producer

realizes the lowest possible delivery costs while the customer receives a level of service that

meets or exceeds expectations.

Most business owners, executives and senior managers agree that providing excellent

customer service and operational efficiency are foundations of a successful business. Executive

leadership should establish a clear vision of how the company is expected to perform in

delivering both customer service and operational efficiency, and then communicate this vision

to every level of the organization.


According to Osiegbu and Nwkanma, (2008) State that profitability facilitates the

process of decision-making and gives directions when preparing company policies. Profitability

is often measured through the use of profitability and return ratios. Some of the most prominent

ratios in this category are the return on assets, return equity, earnings per share, returned on

capital employed, operating profit, pre-tax profit, and net profit. Return ratios facilitate the

evaluation of the ability of company to provide for a return on capital investment, asset and


According to Kester, Ruback, & Tufano, (2011) Liquidity determines the capacity of an

entity to meet financial obligation as they mature. Hence, ratios measuring liquidity relate

liquid assets to claims due within one operating cycle of the company or one fiscal year.

Liquidity measures how swiftly an entity converts its short-term assets into cash to pay

off maturing obligation. Given the connection with daily running of operations, both internal

and external users of financial reports and analysts assess the liquidity position of companies.


According to Grunewald, (2010) states that the self-compacting concrete homogenously

spreads due to its own weight, without any additional compaction energy and does not entrap

air. SSC improves that the efficiency and the appearance of quality concrete in construction




This chapter presents the study design used, geographical area where the study was

conducted, respondents of the study, research instrument used to collect the data and the

methods implemented to maintain validity and reliability of the subject.

Research Design

This researcher will use descriptive correlational method. It is descriptive because it

attempts to describe the challenges encountered, quality of products and financial performance

concrete product producers in SAMARICA, Occidental Mindoro as well as to describe the

customer satisfaction of the costumers. It’s correlational because the study will try to identify

whether the independent variable has a relation with the dependent variable. Descriptive

correlational design is applicable in trying to confirm established ideas and information.

Locale of the Study
This study was conducted in town of SAMARICA, Occidental Mindoro.





Fig. 2. Map of (SAMARICA) San jose,Magsaysay, Rizal and Calintaan. Province of Occidental Mindoro
Respondents of the Study

The respondents of the study were the concrete products producers who encounter a

challenges in their business in SAMARICA, Occidental Mindoro. The respondents were

elected through randomly sampling because there is no recent exact data or record about their


Respondents of the study.

The respondents of the study will be the owners of the concrete product making
business within SAMARICA, Occidental Mindoro. This study will conducting survey to at
least 30 respondents. We come up with this numbers to make this study more effective.

Research Instrument
The researchers prepared their self-made questionnaire as primary instrument in this

study to distinguish significant relation between the challenges encountered, quality of products

and financial performance concrete product producers in SAMARICA, Occidental Mindoro.

The instrument will use Likert-Scale and subjected for validity test through the

recommendation of RECO, Dean, Adviser and Instructor. The data gathering instrument was

composed of two parts. The first part is about the respondent’s profile. The second part is the

percentage of challenges encountered, product quality and financial performance. The

respondents were rate each question with 1= as low, 2= as moderate, 3= as high quality, and 4=

as very high quality.

Data Gathering Procedure

In gathering of data for the study, the researchers had undertaken the following:
1. The researchers’ made survey questionnaires to use and validated by the thesis adviser and

critic reader.
2. The questionnaires were distributed to respondents and retrieved after accomplished.
3. The researchers are going to every municipality of SAMARICA to conduct surveys and gathers

information to the owners of the businesses personally.

4. Gathered data were going to tabulate with the help of the Data Analyst.

Data Analysis
Through the help of the data analyst, the data that will be gathered by the researchers

will be analyzed and computed by using statistical method recommend for interpreting the data

correctly and accurately.


Direction: Please put a check ( ) in the appropriate column for each item to indicate your

rating of agreement with the statement for Parts I and II.

Response Key:
LOW (L) 1
HIGH (H) 3

PART I: Challenges Encountered that help the business to gain advantages

1.What are the challenges encountered by producers of concrete product SAMARICA.

Indicators 4 3 2 1
A. Customer Service
1. Lower the price to attract buyers
2. Considers the customers as the number one in the making of

pricing decisions
3. Builds customers as the relationships through online presence
4. Give discount to customers who purchase bulk orders of the

5. Customer service hotline are always available
B. Personal Management
1. Required training on personnel development
2. Ensure adequate wage rate
3. Proper number of employees
4. Maintain the good manners for customers
5. Maintain satisfied work force
C. Production
D. Durability


E. Appearance
F. Thickness of Concrete