ESTABLISHMENT OF TIRE TECH AUTO SERVICING IN UBAY: A FEASIBILTY STUDY FOR IMPLEMENTATION IN 2013

A Feasibility Study Presented to the Faculty College of Business and Management Education Bohol Northern Star College, Ubay, Bohol

In Partial fulfillment of the requirements for the Degree of Bachelor of Science in Business Administration major in Financial Management

Michelle B Aniasco, Cyrus R. Bernil, Ina Barbara M. Bonghanoy,Lila Mae T. Bulaga, Mary Ann O. Delagon, Ryan Leoje B. Montealto, Maricris B. Namang, Louie R. Palmero

March 2012

APPROVAL SHEET

In partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN FINANCIAL MANAGEMENT, this FEASIBILITY STUDY entitled, ESTABLISHMENT TIRE TECH AUTO SERVICING IN UBAY: A FEASIBILITY STUDY FOR IMPLEMENTATION IN 2013 has been prepared and submitted by Michelle B. Aniasco, Cyrus R. Bernil, Ina Barbara M. Bonghanoy, Lila Mae T. Bulaga, Mary Ann O. Delagon, Ryan Loeje B. Montealto, Maricris B. Namang, Louie R. Palmero, who are hereby recommended for admission to the oral examination. MR. VINCENT BOYSILLO Adviser

Approved by the Examining Tribunal at the oral examination conducted on March 21, 2012 with the grade of ______.

THE EXAMINING TRIBUNAL DR. AMMON DENIS R. TIROL, DM, CPA Chairman

MARIA ELENA L. AMODIA, CPA, MPA Member

JULIETA C. BAHANDI, MAED Member

Accepted as partial fulfillment of the requirements for the Degree Bachelor of Science in Business Administration Major in Financial Management.

DR. CLARITA V. ALESNA, Ph.D. Vice President for Academic affairs

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CERTIFICATE OF RESEARCH ACCEPTABILITY

This research entitled, ESTABLISHMENT OF TIRE TECH AUTO SERVICING IN UBAY: A FEASIBILITY STUDY FOR IMPLEMENTATION IN 2013, prepared by Michelle B. Aniasco, Cyrus R. Bernil, Ina Barbara M. Bonghanoy, Lila Mae T. Bulaga, Mary Ann O. Delagon, Ryan Loeje B. Montealto, Maricris B. Namang, Louie R. Palmero, was carefully reviewed and found to be acceptable in partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION MAJOR IN FINANCIAL MANAGEMENT.

FACULTY REVIEW COMMITTEE

CHRISTOPHER S. BAMBA, MAED Chairman REMECITO B. CAPIN, MAED Member ONDERSON C. JAMONEL, MAED Member

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ACKNOWLEDGMENT

This study is the achievement of the researchers bounded effort, sacrifice, wisdom, love and cooperation. Nevertheless, the researchers are deeply aware of the following persons who helped in the realization of the study. The researchers express gratitude and appreciation of the contribution of the following generous people who rendered invaluable help in the preparation of the study. First and foremost, the researchers express heartfelt gratitude to Almighty Father for the gift of life. For the strength and enlightenment of mind He bestowed and for the blessings and protection. To Dr. Ammon Denis R. Tirol, CPA, DM for the useful comments and suggestion he had given for the improvement of the study. To our parents who were always there supporting and guiding us and gave assistance in the completion of the study. To Mrs. Evangeline B. Maboloc for her great advices and encouragements. To Mr. Vincent Boysillo for helping us in the improvement of this study. To all of you, it is a great honor and distinct privileges to express our warm and cordial thanks for giving us a chance to have this Feasibility Study a possible one. Thank you very much and God Bless you all!

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EXECUTIVE SUMMARY

MISSION The Companys mission is to provide the best quality auto services possible to the customers vehicles.

COMPANY Tire Tech Auto Servicing is the name of the proposed business legally created as a single proprietorship. The proposed location of the business is at Poblacion, Ubay, Bohol, Philippines.

BUSINESS

The company is at the start-up stage, having just opened. The projected net income for the first year is PHP 139,518; PHP 168,757 for the second year; PHP 200,990 for the third year; PHP 236,519 for the fourth year and PHP 275,676 for the fifth year. The researchers assumedthat the net income is increasing per year.

SERVICES OFFERED The companys mainly offer the following services: car detailing, car aligning, wheel balancing and vulcanizing. In delivering services, it is highly competent with skilled and welltrained staff and well-maintained high-tech facility and good services.

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THE MARKET The researchers define the market as part of the service sector of the vulcanizing services in the Philippines. The typical customer is a person who wants to check tire vehicle. The company expects to show actual unique services to the customers. A survey was conducted through questionnaire and personal interview to determine the present demand of the prospective market. It has been proven that there is an unserve need for auto and vulcanizing services in the prospective market. Since the study reflects 85% of willingness in patronizing the services. It would be a great assurance that the market would be feasible. COMPETITION, RISK AND OPPORTUNITY The company competes directly with local vulcanizing shops in Ubay. The greatest risk that has in the business today is market risk. The opportunities are significant wherein the researchers have an opportunity to overcome competition, risk and dominate a niche in the market place. MANAGEMENT TEAM The proposed business project will operate in the form of single proprietorship, which will be owned by Mr. Reynante M. Borja. A manager and cashier will be hired to manage the business. The company has five (5) employees with just compensation and benefits. There will be working rules and policies to ensure the cooperation and harmonious relationship between employees to meet the goal of the business.

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CAPITAL REQUIREMENTS The proponent of the business, Mr. Reynante Borja is willing to provide the capital required PHP 367,620.

FINANCIAL PLAN Revenues Summary Revenues Pre-Tax Profit Balance Sheet Summary Assets Liabilities 2013 835,660 510,101 2014 894,156 566,627 2015 2016 956,747 1,023,719 627,150 691,951 2017 1,095,380 761,331

886,121 1,299,718 1,756,880 161,430 178,388 196,545

2,260,686 215,985

2,814,432 236,799

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Table of Contents APPROVAL SHEET CERTIFICATE OF RESEARCH ACCEPTABILITY ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION THE PROBLEM Statement of the Problem Scope and limitation of the Study Significance of the Study RESEARCH DESIGN Research Methodology Research Environment and subject Research Instrument Data Gathering Procedure Statistical Treatment of Data DEFINITION OF TERMS MARKET STUDY The Market Market Definition Market Segment Competition Market analysis Marketing Strategy Customer Service Pricing Distribution Channels Advertising, Promotion, Trade Shows TECHNICAL STUDY Product Identification i ii iii iv 1 2 2 3 3 4 4 4 5 5 5 6 7 7 7 7 8 9 12 12 12 12 13 14 14

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Services Offered New and Follow-on Services Process Specification Well- Trained Service Personnel Machinery and equipment Capital requirements FINANCIAL ASPECT Basic Financial Assumptions Projected Cost Projected Income Statement Years 2013-2017 Projected Balance Sheet Years 2013-2017 Projected Cash Flow Years 2013-2017 Financial Ratios Financial Analysis SOCIO-ECONOMIC ASPECT Employment Benefit Tax Contribution Cultural Awareness Social well-being of local residents MANAGEMENT ASPECT Form of Ownership Organization Structure Job Descriptions FINDINGS, CONCLUSION AND RECOMMENDATION Appendixes Bibliography Market Survey Questionnaire Questionnaires Tabulation Vicinity Map and Lay-out Curriculum Vitae

14 14 14 16 16 16 17 17 18 19 20 21 22 29 32 32 32 32 33 34 34 35 36 37

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INTRODUCTION
The growing reliance of people upon motor vehicles as the primary means of

transportation is a fact of life. With such facility, people can reach desired places without much effort. It is an answer to peoples problem on distance barriers and indeed a great medicine of loneliness through joy riding and excursion. Now, there are different kinds of vehicle running on the road. Various classifications such us two-wheeled, four-wheeled, six-wheeled, and ten-wheeled vehicles. It is also classified as public and private vehicles. Vehicles owners and drivers wanted the vehicles to stay at good conditions. But there is no guarantee on such case. Without exemption, the most common problem is the vehicle tire failure. Tires are constantly in contact with the road or trail surfaces, rocks, sticks and other sharp objects that can cause puncture and deformation on the carcass of the tire. As environment continues to develop, more people visit other places with the use of vehicles as mode of transportation. As number of vehicle increases, the demand of vulcanizing shops also increases. Since Ubay is developing with increasing number of population, it is expected that Ubay is becoming a city in the near future. There are vulcanizing shops existing in Ubay but are just simple vulcanizing shops, and cannot accommodate all the needs and services of the vehicle owners. Thus, the researchers find it reasonable to conduct this project feasibility study entitled TIRE TECH AUTO SERVICING to be established in Poblacion, Ubay, Bohol.

THE PROBLEM Statement of the Problem

This study aimed to determine the viability and the feasibility of the ESTABLISHMENT OF TIRE TECH AUTO SERVICING in Poblacion, Ubay, Bohol. Specifically, the study sought to answer the following question; 1. What is the profile of the respondents in terms of: 1.1 Gender 1.2 Number of owned/ operated vehicles 1.3 Socio-economic status 2. What are the factors that can affect the profitability on the establishment of the proposed Tire Tech Auto Servicing? 3. How do respondents assess the effects of establishing the proposed Tire Tech Auto Servicing in Poblacion, Ubay, Bohol? 4. Is the proposed study beneficial to the following: a. Proponent/ capitalist; b. Vehicle owners and vehicle drivers; c. Tourists; d. Selected community residents e. Local government of Ubay 5. Is the proposed vulcanizing industry feasible in terms of: a. Management aspect; b. Marketing aspect c. Technical aspect d. Financial aspect e. Socio-economic aspect

SCOPE AND LIMITATION OF THE STUDY

The study is limited to the vehicle owners, vehicle drivers, and tourists in Bohol. This study has certain limitation brought about by its nature. The major problems encountered by the researchers are the limited financial resources and the time constraints in preparing the study.

With this method of gathering data from the respondents, the researchers rely upon the respondents honesty in answering the questionnaire, thus, affecting the validity and reliability on the result of the study. The researchers also experienced a difficulty in distributing the questionnaires to the respondents. Based on the nature of their work, most of them would not stay longer in one place. Thus, there is more likely a possibility of reluctance on part to share ideas regarding the study.

SIGNIFICANCE OF THE STUDY

The researchers expect that the results of this undertaking will be beneficial to the following persons: To the vehicle owners and drivers, it will provide convenient location that offers prime quality services with a reasonable price. To the proponent/capitalist, it will give an assurance for good investment opportunity. To the residents of Ubay, this will create employment opportunities to the people in the community.

To the tourist or visitors, it will immediately answer the tire problems of vehicle while on trips. To the Local Government of Ubay as this will contribute to the economic development of Ubay, Bohol wherein, it adds additional income to the government in a form of tax payment. The busy people such as office workers and business people, it will bring relaxation and relief from stress. It will also aid blood circulation therefore extending a healthy life to all.

RESEARCH DESIGN
Research Methodology The study utilized the descriptive normative method of research in order to ascertain the internet generated good supplement data study. The distribution of questionnaire was used in gathering data from the respondents. The researchers also employed some clerical tools of data gathering, observation in the proposed site and library techniques used. With the aid of the project feasibility method, the researcher formulated questionnaire and presents the conceived and projected phases of the project including the marketing, technical, organizational and marketing management, legal, financing and socio-economic aspects. Research Environment and Subject The study was confined to the establishment of a vehicle and tire servicing center in Ubay. The locale of the study is in Poblacion, Ubay, Bohol where the proposed project will be made. The target market of this study are the residents of Ubay and in order to gather the data. The survey questionnaires were administered and gathered from one hundred (100) respondents to provide relevant data and information with the realization of the project proposal. Research Instrument In order to gather the necessary data for the study, a questionnaire and interviews were formulated to secure responses from the respondents. The researchers asked permission from the respondents before given questionnaires. There were four areas of concern that were made subjects of inquiry namely: profile of the respondents, perception of the respondents on the factors that can affect profitability, its effects in the community and the benefits of the

proposed Auto Servicing to the respondents and municipality of Ubay, Bohol. Interviews were conducted to persons having adequate and technical knowledge about the study. Data Gathering Procedure To secure better responses from 100 respondents, the questionnaires were distributed and collected by the members of the group. The data from respondents were collated and tabulated for presentation, analysis and interpretation. Some follow-up interviews were made to clarify doubtful data. Statistical Treatment of Data The data gathered were then collected personally by the researchers. It was collated and tabulated for presentation, analysis, and interpretation so that it could come out with reliable result and hence, become the basis for the conclusions and judgment of the study. They were analyzed and interpreted in simple percentages. It was done by dividing the frequency of responses to every item by the total number of cases and multiplied by one hundred (100). The formula in finding the simple percentages is as follows: Formula: Percent = F/N (100) Where: P = percentage F = frequency of the responses N = number of cases, 100 = constant Trend analysis for projected market size was computed using the polynomial regression approach based on selected survey responses designed to generate market related information.

DEFINITION OF TERMS
Amortization - The term refers to the process of allocated and assigning the cost of cash in a systematic and rational manner. Cash Flow Statement - It refers to the financial statement that shows and explains in detail the changes in cash positions of the proposed vulcanizing business during the period. Feasibility Study - Thorough and systematic gathering of data and analysis of all factors that affect the possibility is the success of a proposed business undertaking. Financial Ratio - A relative magnitude of two selected numerical values was taken from an enterprises financial statements. Project Proponent - It refers to the person or entity conceptualizing, initializing, promoting or financing a proposed project. Return on Investment - It refers to the income expressed as a percentage of the investment. Tire - The term refers to the covering mounted on the rim of a wheel that serves as a cushion and surface for traction. Vehicle - The term refers to a usually wheeled conveyance used in land for carrying people or goods. Vulcanization - It refers to a specific curing process of rubber involving high heat and addition of sulfur. Working Capital - It refers to the amount of cash required by a newly commissioned project to cover operating costs and other expenses until internal generated cash is sufficient to cover such expense.

MARKET STUDY
The Market The researchers define the target market service industry as part of the alternative business sector who wants to avail services of Auto Servicing. The immediate geographic market in Ubay, Bohol with a population of about 2,454 and is about to grow for 3% by the year 2013 according to records obtained from the Rural Health Unit 1 (RHU1) of the Municipality of Ubay.

Market Definition The researchers define the market as the sector served by Auto Servicing. The growth of the business comes from the individuals seeking services for tire vehicles. This is because the existing vulcanizing shops are not equipped with materials and hi-tech equipment. The industry is expected to realize a rapid increase over the next few years. The major future trend in the industry will be toward environmentally oriented, social relevance, high quality and value oriented service offering.

Market Segment The researchers identify the target market segment as travel and tour target groups were the vehicle driver and travelling tourist. Most of the sales from travel and tour are made through radio promotions, marketing representation, and internet promotion and print ads such as: billboards and posters. The Tire Tech Auto Servicing equips with high-tech materials and equipment compared to other vulcanizing shops. The market has a great deal of potential as it is the only auto servicing center having extensive equipment and materials.

The researchers identify the target market segment as vehicle owner and vehicle drivers of Ubay and neighboring towns. It consists of two groups: Vehicle drivers: This group makes up the majority of the target market. Since vehicle drivers travel from day to day activities, the drivers will most likely avail of vulcanizing services. Government and private employees: This group will also take advantage of the services if tire problems will be encountered.

Competition Competition in the area comes from the following vulcanizing shops already established in Ubay:

1. KCJ and DNB Motor parts, 2. Ubay Motor Parts 3. ODINGs Motorcycle Spare Parts 4. Chong Vulcanizing Shop 5. Son-oc Vulcanizing Shop

Service Offered Overhauling, change oil, vulcanizing, Aligning / assemble Overhauling, change oil, wheel aligning, chain set Overhauling, vulcanizing, change oil, set cover mounting, aligning Vulcanizing, battery charging Vulcanizing, change oil

Comparatively, Tire Tech Auto Servicing takes more advantage from the above mentioned competitors for it is the sole service provider for car detailing. The services of these vulcanizing shops are incompetent with materials and equipment. That is, it gives a great advantage to the researchers of the study. Tire Tech Auto Servicing is the name of company for it specifically mean that this company serves best quality. The name of business emphasizes uniqueness in its terms.

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Market Analyses Tire Tech Auto Servicing will provide solution to different tire problems of both private and public owned vehicles in the municipality of Ubay. Based on the data gathered from the Land Transportation Office, the number of registered vehicles of Ubay from the year 2008 to 2012 increased annually.

Table 1
Registered vehicle in municipality of Ubay from the period 2008 to 2012 SOURCE: LTO office, JAGNA and LTO office Talibon

Type of Vehicle Motorcycle 4-Wheels 6-Wheels Total Registered Vehicle

2008 4,460 1280 70 5,810

2009 4,906 1408 77 6,391

2010 5,397 1548.8 84.7 7,030

2011 5,936 1703.68 93.17 7,733

2012 6,530 1874.048 102.487 8,506

Correlated with this historical information is the survey finding on the question of preference for the opening of the Auto Servicing as presented in Table 2.

Table 2 Survey Responses on Willingness to have Auto Servicing in Ubay. Source: Tabulation of Survey Questionnaire
Willing to have vulcanizing shop Yes No Total F 85 15 100 % 85% 15% 100%

From the survey responses it can be assumed that almost all of the respondents are willing to avail of the services of vehicle and tire servicing center. As there are already alternative competitors, the researcher assume that they can only get a twenty-five percent (25%) market share in the market. With these assumptions, a projection of the prospective clients was made through a trend line analysis of the future registered vehicles of Ubay and

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twenty-five percent (25%) market share for the planned business. This projection is shown in Figure 1 below.

Figure 1. Trend line forecast of respondents willing to have a Auto Servicing here in Ubay.
9,000
8,000 7,000 Total Registered Vehicle

6,000
5,000 4,000

85%willing y = 157.5x + 1020. R = 0.996

3,000
2,000 1,000

25% market share

A polynomial trend line was plotted using the percentage of respondents who were willing to have an Auto Servicing here in Ubay. The polynomial trend line is used because the data from 2008- 2012 was fluctuating with an order to polynomial trend line with one valley. The forecast based on the trend line analysis is shown in Figure 2 and numerical values in Table 3. The equation to calculate the forecasted demand: Y=157.5x+ 1020

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Figure 2: Trend line forecast for 25% Market Share

3,500

3,000 2,500
2,000 1,500 1,000 500 -

y = 157.5x + 1020. R = 0.996

25% market share

Table 3 Trend line forecast values for the 25% market Share
Year 2013 2014 2015 2016 2017 X 6 7 8 9 10 y=157.5x+1020 1,965 2,122 2,280 2,437 2,595

Trend line forecast values for the 25% market share was tabulated in Table 3 by using the formula y= 157.5x + 1020 from the year 2013 to 2017. It is based from the 85% willingness to have a vulcanizing service of Ubay from the historical demand which was from the year 2008 to 2012. Table 3 depicted the projected demand for the next five (5) years of operation.

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Marketing Strategy The Tire Tech Auto Servicing is a full-service vulcanizing shop consistently providing high customer satisfaction by rendering excellent services, quality products and excellent customer relationship. It also gives to the customer better services at a reasonable price. The company expects to penetrate the target market by using the local media channels, and placing posters to promote the business to the target market. Customer Service: The company ensures that the employees have been highly trained. Since this is a service industry, unsurpassed customer service will be the primary goal of the company. This aspect, among others is what the company sets apart from the competitors. Each customer will be assigned to specific technicians in the Auto Servicing Pricing: The pricing strategy is based on the standard fee and the kind of services availed that is affordable to the customers. Distribution Channels: All of the services will be distributed at the Auto Servicing Center. The services will be availed by actual visit of customers. Home service is discouraged. Advertising, Promotion, Trade Shows: The Tire Tech Auto Servicing has promotional activities in the streets, will distribute flyers and place posters at a conspicuous place in Ubay. During anniversary and Christmas seasons, the center offers promotions like rendering free car washing service to customers who availed the wheel alignment and wheel balancing services. This is exclusive only for the first five customers. On Christmas and Anniversary, the establishment will give coupons for every 200 pesos worth of service availed in the shop. Three coupons can be exchanged with a cap or hand towel.

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TECHNICAL STUDY
Product Identification The operation of Auto Servicing is a labor intensive process, differentiated with a high level of expert and skilled workers. Its well-trained employees who are expert in fixing tire problems will ensure customer satisfaction. To attain competetiveness, the company must manage quality services at the lower cost and should maintain a customer friendly environment.

Services Offered Tire Tech Auto Servicing rendered prime quality services at a reasonable service fee to its customers. The services offered by the prepared business are the following; vulcanizing service, wheel alignment, wheel balancing, car detailing and accessories. The services offered will be done with the aid of hi-tech machines, thus enables a more reliable result and shorter time of work.

New and Follow-on Services Responding to the market needs, the researchers plan to offer other services to extend the existing offering that will include overhauling service, pressure hose, chassis repairing and car washing. In the future, the business facilities may require expansion when customers influx will continue to increase.

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Process Specification Customers satisfaction can be obtained through smooth flow of service in the business. In such case, a systematic flow of service will be implemented in Tire Tech Auto Servicing. The service flow of the proposed business is presented below: 1. Inquiry about the service needed. Upon the arrival of the customer at the Tire Tech Auto Servicing, the security guard will ask the customer what particular service is needed. A staff will inform cost estimation of service to be availed by the customer and will guide where to park. 2. Performing the necessary service. The assigned worker for the required service will do the needed service to the vehicle. In case, the repair takes some more time, the customer will be asked to stay at the customers lounge while waiting. 3. Payment. The customer will pay the amount to the cashier and the cashier will issue an official receipt as proof of payment.

Arrival of customer
Inquiry about the service needed to the service assistant Assistance from the service assistant

Doing the necessary service by the in-charge

Payment to the cashier Departure

Figure 4. SERVICE FLOW

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Well-Trained Service Personnel The Staff shall be trained by the internationally recognized training institutions and/or associations such as TESDA which is dully recognized by the Department of Tourism. The personnel must have experience and expertise on the services of an Auto Servicing. Likewise, staffs are knowledgeable of the specific job. monitoring and supervision of the manager. World class facilities and offerings All the facilities including administrative facilities, employees facilities and treatment rooms facilities should be modern and of good quality and must be better than the local competitors. The service offerings must be internationally recognized and will be rendered excellently. Production Volume With the forecasted (25%) market share, the firm would expect to serve an average increase of 8% per year in the succeeding years. Machinery and Equipment Investment for fixed assets would total 360,000 Initial Cash Outlay Building Renovation: Materials Labor Electrical and Lighting Installations Equipment Capital Requirements The owner will provide three hundred sixty-seven thousand six hundred twenty pesos (PHP 367,620) of initial equity to fund the firm for its start-up operation. 10,000 70,000 40,000 10,000 230,000 These aspects can be assured by constant

360,000

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FINANCIAL ASPECT Basic Financial Assumptions Revenue: a. Income is generated from the service rendered by the Auto Servicing to the customer. Income will increase 10% annually.

Expenses: a. Light and power is P 3,000.00 per month and expected to increase by 5% annually. b. Water bill is P 120.00 per month and expected to increase annually. c. Promotion and advertising is assumed to be P 500.00 for two weeks before the start of the operation. d. Fees for permits and licenses worth P2, 120.00 and will increase at 5% annually. e. Pre- operating costs are to be amortized for five (5) years. f. Depreciation of assets will be computed using the straight line method. Assets Building Renovation Equipment h. Income tax is paid annually. Useful life 20 years 20 years

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Project Cost

I. Pre-operating Cost Permits and Licenses Advertising Cost Blesssing and Opening Ceremonies Project Feasibility Study II. Asset Requirements Initial Cash Outlay 10,000 Building Renovation: Materials 70,000 Labor 40,000 Electrical and Lighting Installations 10,000 Equipment 230,000 Total Project Cost 2,120 500 1,000 4,000 7,620

360,000 367,620

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TIRE TECH AUTO SERVICING PROJECTED INCOME STATEMENT For the years ended Dec. 31 2013-2017 2013 Gross Service Revenue 835,660 2014 894,156 2015 2016 2017

956,747 1,023,719 1,095,380

Expenses Salaries and Fringe Benefits 257,140 Rent expense 10,000 Operating Supplies 1,955 Light and Power 36,000 Water Bill 1,440 Amortization of Pre-operating Expenses 1,524 Depreciation Expense 17,500 Total expenses 325,559 Income before tax Less: Income Tax (30%) Net Income 510,101 153,030 357,071

257,140 10,000 2,053 37,800 1,512 1,524 17,500 327,529 566,627 169,988 396,639

257,140 10,000 2,155 39,690 1,588 1,524 17,500 329,597 627,150 188,145 439,005

257,140 10,000 2,263 41,675 1,667 1,524 17,500 331,769 691,951 207,585 484,366

257,140 10,000 2,376 43,758 1,750 1,524 17,500 334,049 761,331 228,399 532,932

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TIRE TECH AUTO SERVICING

PROJECTED BALANCE SHEET Year 2013-2017 Pre-Operation 2013 2014 2015 ASSETS: Current Assets Cash 10,000 547,525 Non-Current Asset Leasehold improvements 120,000 114,000 Equipment 230,000 218,500 Pre-Operating Cost 7,620 6,096 Total Non-Current Total Assets 357,620 338,596

2016

2017

980,146 1,456,332 1,979,162 2,551,932 108,000 207,000 4,572 319,572 102,000 195,500 3,048 300,548 96,000 184,000 1,524 281,524 90,000 172,500 262,500

367,620 886,121 1,299,718 1,756,880 2,260,686 2,814,432

Liabilities & Owner's Equity LIABILITIES: Income Tax Payable SSS & Philhealth payable Total Liabilities Owner's Equity Borja, Capital Add: net Income Total Owner's Equity Total Liabilities and Capital

153,030 8,400 161,430

169,988 8,400 178,388

188,145 8,400 196,545

207,585 8,400 215,985

228,399 8,400 236,799

367,620 367,620 724,691 1,121,330 1,560,335 2,044,701 357,071 396,639 439,005 484,366 532,932 367,620 724,691 1,121,330 1,560,335 2,044,701 2,577,632

367,620 886,121 1,299,718 1,756,880 2,260,686 2,814,432

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TIRE TECH AUTO SERVICING PROJECTED CASH FLOW

Year 2013-2017 Pre-Operation 2013
Ca s h fl ows from opera ti ng a cti vi ti es Ca s h Infl ows opera ti ng i ncome SSS & Phi l hea l th Pa ya bl e Provi s i on of Ta x Amorti za ti on Depreci a ti on Tota l Infl ows

2014

2015

2016

2017

367,620 357,071 8,400 153,030 1,524 17,500 367,620 169,988 1,524 17,500 188,145 1,524 17,500 207,585 1,524 17,500 228,399 1,524 17,500 396,639 439,005 484,366 532,932

537,525

585,651

646,174

710,975

780,355

Ca s h Outfl ows Pa yment of Ta xes Pre-Opera ti ng Cos t Bui l di ng Renova ti on Equi pment Tota l Outfl ows

153,030 7,620 120,000 230,000 357,620 153,030

169,988

188,145

207,585

169,988

188,145

207,585

Net Outfl ows Add: Begi nni ng Ca s h Ba l a nce

10,000 10,000

Ending Cash Balance

537,525 10,000 547,525

432,621 547,525 980,146

476,186 522,830 980,146 1,456,332 1,456,332 1,979,162

572,770 1,979,162 2,551,932

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Ratio of Current to Total Assets = Current Asset/ Total Asset 2013 2014 2015 Current Asset 547,525 980,146 1,456,332 Total Assets 886,121 1,299,718 1,756,880 Ratio of current to Total Assets 0.62 0.75 0.83

2016 1,979,162 2,260,686 0.88

2017 2,551,932 2,814,432 0.91

Indicates for every P1.00 asset owned by the company,the current asset contributed P0.19 in the first year operation. Stability or Long-Term Solvency Debt to Equity Ratio=Total Liabilities/Total Owner's equity 2013 2014 2015 Total Liabilities 161,430 178,388 196,545 Total Owner's Equity 724,691 1,121,330 1,560,335 Debt to Equity Ratio 0.22 0.16 0.13

2016 215,985 2,044,701 0.11

2017 236,799 2,577,632 0.09

This measures the proportion of borrowed capital to the firm's invested capital. The borrowed capitals contribute P0.05 times less than the resources owned by the firm. Fixed Asset/Total Owner's Equity 2013 Fixed Assets 357,620 Total Owner's Equity 724,691 Fixed Asset to Owner's Equity 0.49

2014 338,596 1,121,330 0.30

2015 319,572 1,560,335 0.20

2016 281,524 2,044,701 0.14

2017 262,500 2,577,632 0.10

This ratio indicates that for every P1.00 capital owned by the firm the fixed asset contributer P0.90 . Payback Period Cost to be recover Cash inflows Payback in years 2013 367,620 537,525 1 2014 -169,905 432,621 0 2015 -602,526 476,186 -1 2016 -1,078,712 522,830 -2 2017 -1,601,542 572,770 -3

The firm has considerable payback period. The firm regain it's capital within five years. It only shows that Tire Tech Auto Servicing would generate income after all.

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Schedule I - Gross Revenue (10% increase) Computation of Gross Revenue:

Services Vulcanizing 2-wheels Vulcanizing 4-wheels Vulcanizing 6-wheels vulcanizing others Wheel Alignment Wheel Balancing detailing- motorcycle car detailing Total

Ratio 28% 6% 3% 3% 15% 12% 29% 4% 100%

Clients 550 118 59 59 295 236 570 79 1,965

Rate

Yearly 11,000 5,900 3,540 4,720 153,400 82,600 456,000 118,500 835,660

20 50 60 80 520 350 800 1,500

Schedule 2 - Operating Expenses 2013 Salaries and Fringe Benefits Operating Supplies Rent expense Light and Power Water Bill ( Schedule 8 ) Expenses Equipment Total 257,140 1,955 10,000 36,000 1,440 1,524 11,500 319,559 2014 257,140 2,053 10,000 37,800 1,512 1,524 11,500 321,529 2015 257,140 2,155 10,000 39,690 1,588 1,524 11,500 323,597 2016 257,140 2,263 10,000 41,675 1,667 1,524 11,500 325,769 2017 257,140 2,376 10,000 43,758 1,750 1,524 11,500 328,049

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Schedule 3- Salaries and Fringe Benefits

Position Vulcanizer-Wheel Aligner Vulcanizer-Wheel Balancer Car detailer Service Assitant Part-time Bookeeper Total Monthly Total annual Rate/ Month SSS & Philhealth Net Pay 5,760 5,760 5,760 2,000 500 19,780 257,140

250 250 200

5,510 5,510 5,560

700 8,400 8,400

16,580 123,600

SSS & Philhealth Payable

Schedule 4: Operating Supplies (5% Increase) Qty. price Amount Patches 15 45 675 Rain visor 1 500 500 Urethane paint 5 20 100 Thinner 10 30 300 Brush 5 50 250 SandPaper 3 10 30 Glue 2 50 100 1955 Schedule 5: Light and Power expense ( 5 % Increase) Monthly 3,000 36,000

Light & Power annually

Schedule 6: Water Bill (5 % increase) Monthly Consumption Water Bill Annual 120 1,440

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Schedul e 10 Brea k-Even Ana l ys i s

Forecasted Annual sales

11,000 5,900 3,540 4,720 82,600

Variance (Est vs.Bep)

Allocated Fixed Cost

Servi ces Vul ca ni zi ng 2-wheel s Vul ca ni zi ng 4-wheel s Vul ca ni zi ng 6-wheel s Vul ca ni zi ng Others Wheel Al i gnment Wheel Ba l a nci ng ca r deta i l i ng Tota l La bor cos t per hour Monthl y Fi xed Cos t to be Al l oca ted Annua l Fi xed Cos t to be Al l oca ted 10,000 36,000 1,440 1,524 11,500 5 28% 20 20 20 6% 3% 3% 550 118 59 59 295 236 570 3.17 12.67 12.67 12.67 44.33 38.00 76.00 3.00 10.00 13.00 17.00 280.00 100.00 100.00 580.00 6.17 22.67 25.67 29.67 324.33 138.00 176.00 732.00 20.00 50.00 60.00 80.00 520.00 350.00 800.00 1,500.00 13.83 27.33 34.33 50.33 212.00 768.00 796 57 493 427 15 103 256 342 7 6 52 53 1.3% 0.7% 0.4% 0.6% 18.4% 9.9% 54.6% 14.2%

70 15% 60 12% 240 4%

195.67 11,099 56 239 153,400 5,977 28 208 8,574 11 60,464 624.00 32,994 52 518 456,000 68 118,500

Deta i l i ng motorcycl e 120 29%

79 152.00 38

100% 1,966

835,660 100.0%

5,039 60,464

% relative to service sales to total sales

Contribution Margin

Total Variable Cost

break-even point

Total Supplies

selling price

Minutes

Clients

Labor

Ratio

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Schedule 11 Supplies Charged per Service (in pesos)

Center post bushing

Urethane paint

Services Vulcanizing 2-wheels Vulcanizing 4-wheels Vulcanizing 6-wheels Vulcanizing Others Wheel Alignment Wheel Balancing Detailing motorcycle car detailing 20 500 20 20 50 50 10 10 2 8 10 12 1 2 3 5 280 100

3 10 13 17 280 100 100 580

Total Supplies

Metal paste

SandPaper

Rain Visor

Patches

Thinner

Brush

Glue

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FINANCIAL ANALYSIS

Analysis on Income Statement The projected income statement shows that the revenue increases annually of only 10%. Total expenses shows that it is 75% from the revenue. Net Income after tax is only 18% of the revenue. Net Income after tax is only 5% of the revenue with revenue of PHP 835,660 on the first year. The revenue for the succeeding periods will be PHP 894,156; PHP 956,747; PHP 1,023,719 and PHP 1,095,380. The result signifies that the rate of return can justify the investments of the proponent.

Analysis on Balance Sheet

Balance sheet is a snapshot of a firms financial resources and obligation at a single point in time. It allows someone-like a creditor-to see what a company owns as well as what it owes to other parties. Projected balance sheet of Tire Tech Auto Servicing for the year 2013 to 2017 shows that the total non-current asset is greater than the total current asset. Total liabilities shows that it increases annually in which it can be paid up by the business, since the business is clearly solvent. The projected balance shows the liquidity and stability of the TIRE TECH AUTO SERVICING business

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Analysis on Cash Flow Statement Cash flow is essentially the movement of money into and out of the business; it is the cycle of the cash inflow and cash outflows that determine the business solvency. The projected cash flow of the TIRE TECH AUTO SERVICING yields an increasing operating income and it can suffice the cash expenditures of the business since it shows an increasing rate per year.

Summary on Financial Ratios Profitability ratios show the rate of return on investment (ROI) reveals that there is an average increase of return of 0.40 for the next years. Rate of Return on sales shows an average increase on return of 0.31 in the next years. A liquidity or shortterm solvency ratio shows that there would have a 3.39 available current asset to settle every Php 1.00 current liability which signifies that the business is solvent. Ratio of current to total assets indicates that for every Php 1.00 asset owned by the company, the current asset contributed 0.62 in the first year operation. Stability or long-term solvency measures the proportion of borrowed capital to the firms invested capital. The borrowed capital of TIRE TECH AUTO SERVICING contributes 0.22 times less than the resources on by the firm. Fixed asset to total owners equity ratio indicated that for every PHP 1.00 capital owned by the firm, the fixed asset contributed will be 0.49.

The firm has considerable payback period wherein the firm can regain its capital within five (5) years.

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Break-Even Analysis: Explanation, purpose, and Importance Break-even analysis is used to determine how much sales volume the business needs to start making a profit. The formula for break-even is BEP = fixed cost/contribution margin. Fixed costs are costs that must be paid whether or not any units are produced. These costs are fixed over a specified period of time or range of production. Variables costs are costs that vary directly with the number of products produced.

Creating a break-even analysis will give every businessman the information they need on profitability. It helps to determine the optimum sales price for each product, to reach maximum revenue by setting the price at the point where revenue is at its highest. Break-even point is the number of units that must be sold in order to produce o profit of zero (but will recover all associated costs). In other words, a companys break-even point is the amount of sales or revenue that it must generate in order to equal its expenses. In its simplest form, breakeven analysis provides insight into whether or not revenue from a product or services has the ability to recover the relevant costs of production to make a variety of decisions. The product may be discontinued or, by contrast, may receive additional advertising and or be re-priced to enhance demand.

Break-even analysis is very important to understand that increased sales do not always translate into increased profits. Many companies have gone out of business by ignoring the importance of break-even analysis, thinking increased sales will lead to certain profitability.

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On the break-even analysis of Tire Tech Auto Servicing indicates that car detailing has the biggest contribution margin but has the least percentage of ratios over the total projected clients. Sales volume of this service will increase by persuading prospective customers to avail this service by thorough advertising and promotion. This service should be given stressed of Tire Tech Auto Servicing because of its less demand but project maximum revenue.

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SOCIO-ECONOMIC ASPECT

Business is required to have proper planning, goal setting, and purposes in its operation. It should adhere to the government policies, comply all the permits and licenses before it will start to operate. Definitely, the Tire Tech Auto Servicing not only aims to earn profit in favor of the proponent but also to render prime quality services to the vehicle owner, drivers and tourist at reasonable prices. It is designed to provide solution to the different tire problems of vehicles, thus a great help in the transportation and tourism activities of the municipality of Ubay and neighboring towns.

Employment benefit The operation of Tire Tech Auto Servicing will require six (6) employees. The company offers employment to individuals and provides enough benefits to employees such as SSS and Phil. Health, thus enables to earn money for daily needs.

Tax Contribution Tire Tech Auto Servicing will contribute income to the government, through payment of taxes. The company will pay an annual income tax of at least one hundred fifty three thousand and thirty pesos (PHP 153,030) at the first year. This tax contribution will increase the towns income which gives benefit for the community.

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Cultural Awareness The objectives of researchers are to provide better services from Auto Servicing to the local residence, give employment and contribute to the improvement of the town. Aside from that, the people will be aware of the world-class services and high-tech equipments.

Social well-being of Local Residents Establishing an Auto Servicing which offers variety of services at an affordable price will meet the needs of the local residence at convenience, at a reasonable price. The people will also be socially inclined with the personnel and acquaintances for these will develop social relationship with other people.

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MANAGEMENT AND ORGANIZATIONAL STUDY

Management plays a very important role in every business. Through proper management, the goals and objectives of the organization are very well established and the set of policies, and rules and regulations in a organization are implemented effectively. The business resources are utilized efficiently in carrying out the business functions. This section discuss the projects form of ownership, organization set-up, Personnel job specification and description, labor requirements, working policies and benefits.

Ownership The form of business organization is sole proprietorship. The TIRE TECH AUTO SERVICING business will be solely owned by Reynante M. Borja. The gains and losses that will be incurred by the business will be enjoyed and shouldered by the proprietor only. The owner is an expert in mechanics problems; completed operations related studies and worked in Cebu during the past ten (10) years. After returning to Bohol to live with his family in Pang-pang, Ubay, Bohol, he decided to start an Auto Servicing with the financial assistance of his sister who is working abroad. Management Team The owner will act as the manager/cashier of the business thus, the business only needs to employ five (5) employees: the two (2) vulcanizers who are at the same the wheel aligner and wheel balancer, car detailer, service assistant and a part-time bookkeeper. These personnel are full time workers except for the bookkeeper who will serve as a part-time and will visit the shop once a month.

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Manager / Cashier

Part-time Bookkeeper

Vulcanizing/ Wheel Aligner

Vulcanizing/ Wheel Balancer

Car Detailer

Service Assistant

Figure 3. ORGANIZATIONAL CHART Job Description: The job description with qualification and specification: basis functions, duties and responsibilities, and daily individual work flow of every personnel in Tire Tech Auto Servicing are as follows:

Job Title Manager/ Cashier ( Owner )

Qualification Owner of the business and good leader possess a smooth interpersonal relation Must be capable of financing the business Has knowledge in managing a vulcanizing business.

Duties and Responsibilities Supervises the business operations Makes and implement the rules and regulation to be followed in the establishment In charge in handling business funds which includes cash receipts and cash disbursements.

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Vulcanizers/ Wheel Aligner/ wheel Balancer

Car Detailer -

Service Assistant

Part-time bookkeeper -

Male, age not less than 18 years old. Knows how to perform vulcanizing, wheel aligning, and wheel balancing works. Has knowledge how to operate machines. A graduate of automotive technology course. Male, not less than 18 years old. An artist, know how to innovate the physical appearance of the vehicle. Male, age not less than 18 years old, knows how to deal and how to approach the customers. Efficient worker. Male/ Female, age not less than 21 years old. Accountancy graduate. At least 1 year experience in bookkeeping services. Has independent and good moral character.

Responsible in the vulcanizing works on the vehicle tires of the customers. Has the task to maintain the good condition of the machine and tools needed in his work?

In charge of detailing vehicle of the customers.

Maintain the shops cleanliness. Assists the customer in parking their vehicles as they enter the shop.

Responsible of keeping the tools of account and make the entries to the general journal. Prepares and submits financial statement of the business as well as the preparation of income tax return.

Manpower When all positions are filled, there would be personnel with an annual payroll of PHP 257,140 pesos. Schedule 3 present the estimated salaries assumed as constant and fixed per year. Personnel Trainings and Improvements There would be extensive personnel trainings every year especially to the massage therapists for them to gain additional skills and knowledge in their field. The general manager, whose major objective is to develop services and provide superior benefits to the clients must

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head services training and development to the staffs. He is responsible for the supervision of the operational detail of personnel. The purpose to have personnel trainings and improvement is to achieve positive return on investment and for the growth of the business.

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FINDINGS

Profile of the Respondents The respondents of the study were one hundred (100) vehicle owners/drivers, 72 of the respondents have motorcycle, and 40 have 4-wheels, 6 have 6-wheels and only 3 have other kind of vehicle. In terms of respondents gender, eighty six (86) were male and 14 were female. The result of the study showed that majority of the respondents earned below five thousand (Php 5,000) every month. This indicates that the target market of the proposed project study has the capacity to pay the corresponding service charge if they will avail the services.

Factors that affect Profitability of Tire Tech Auto Servicing The respondents responses showed that quality of service is the most important factor that can affect business profitability. The rest of the respondents see to it that the company offers more services than other, well-trained personnel, high-tech equipment and offer clean and safe working area. The results of the survey are very important for the management because these will serve as guidelines as to what factors must be taken into consideration in establishing the business.

Effects of Establishing Tire Tech Auto Servicing Based on the assessment of the respondents on the effect of establishing Tire Tech Auto Servicing, the researchers found out that there is an assurance of profit if the proponent will establish the proposed business. The result showed that Tire Tech Auto Servicing will also

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give employment opportunity to the residents of Ubay and nearby places, improve the economic atmosphere of the Municipality, and give additional income in the form of taxes.

Benefits of establishing Tire Tech Auto Servicing The business can give benefit first to the vehicle owners and drivers, next, to the proponent, followed by the community residents of Ubay, tourists or visitors and lastly to the Local Government of Ubay.

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Feasibility of the Proposed Study Market Aspect Considering the status of proposed Tire Tech Auto Servicing is a good investment to the proponent. As the number of vehicle owners and drivers increases, the number of vehicles that will travel also raises. Aside from the quality services it offers that would somehow attract the customers, the establishment can provide then the service needed by their vehicles. With the increasing rate of vehicles and well-planned management program, the vulcanizing industry could assume substantial demand.

Technical Aspect The location for proposed business is favorable and really suitable of the type of business. The building layout must be properly planned and designed.

Management Aspect Tire Tech Auto Servicing will be a single proprietorship type of business. This will be easy for the proponent to manage the business because the proponent is the sole decision maker for the business operation. The responsibilities of each employee are clearly identified to avoid conflict of interest.

Financial Aspect The proposed business showed a favorable return on investment; return on assets and at the time an increasing net income. In such case, the establishment of the proposed Auto Servicing shop would definitely give the proponent a good investment opportunity.

Socio-Economic Aspect The study shows favorable findings with regards to the socio-economic aspect of the business. Tire Tech Auto Servicing is an answer to the Municipalitys need for such establishment. It can help unemployed residents of Ubay and generate revenues for the Municipality through payment of taxes and licenses. In general, the business could create positive results into the economic status of Ubay.

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CONCLUSIONS In view of the findings the following conclusions were formulated: Majority of the respondents were male who owned or operated a vehicle. In addition, a large percentage of the respondents had monthly income of five thousand pesos below. The first determinant of business profitability is the quality of service offered by the firm to the customers. Aside from quality of services, customers also preferred Auto Servicing shop with clean and safe working area. This means that management contributed much into the success or failure of business because quality of services and cleanliness and safety working area rely on management decisions. The establishment of Tire Tech Auto Servicing can give positive effects to the proponent in the form of profit. In addition, it could provide employment to the residents and an additional-income to the municipality of Ubay. Aside from these, the business is also great help in the tourism activities of Ubay and neighboring towns The business can give benefit first to the vehicle owners and drivers, next to the proponent, followed by the community residents of Ubay, tourists or visitors and lastly to the local government of Ubay. The market study indicates that the number of registered vehicles is increasing which means that the demand for Auto Servicing also rises. Therefore the proposed vulcanizing shop is feasible as to market aspect because there is an increasing demand for the service and based on the survey conducted, the respondents need such establishment for the maintenance of vehicle tires. The location for the proposed business is favorable and really suitable of the type of business. The building layout must be properly planned and designed.

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Tire Tech Auto Servicing will be a single proprietorship type of business. It will be easy for the manager to manage the business being a sole decision maker for the business operation. The responsibilities of each employee are clearly identified to avoid conflict of interest. The proposed business showed a favorable return on investment; return on assets and at the same time an increasing net income. In such case, the establishment of the proposed Auto Servicing shop would definitely give the proponent a good investment opportunity. The study show favorable findings with regards to the socio-economic aspect of the business. Tire Tech Auto Servicing is an answer to the municipalitys need for such establishment. This can help unemployed residents of Ubay and generate revenues for the municipality through payment of taxes and licenses. In general, the business could create positive results into the economic status of Ubay.

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RECOMMENDATIONS Considering all the factors for the business success, the following recommendations were made: 1. In actual establishment of Tire Tech Auto Servicing, the management must ensure that the factors such as quality of services and accessibility of location should be considered for the success of the business. 2. Proper management of the shop on the employees work should be done to enable to business give the positive benefits mentioned in study to the locality. 3. The researchers emphasized proper management, good customer relations and offering quality services would provide the business. 4. The researchers suggest that the business must assure good quality to each customer to encourage the target market to patronize its service. 5. The construction of the proposed Auto Servicing should start in the year 2013 to immediately start the operation. Employees should be carefully selected to assure prime quality of services. 6. The researchers highly suggest that employees must be carefully selected and be hired according to identified qualifications. An actual testing of performance should be done to assure that the would-be employees are efficient and competitive to render quality service. 7. The proposed business showed a favorable return on the proponents investment and shows a short payback period. With such fact the researchers suggest its actual establishment. 8. Aside from being feasible, the business could provide benefits to the Municipality of Ubay and its residents. Its establishment is really advantageous, thus the researchers highly recommend its immediate establishment.

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APPENDIXES

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Bibliography Books Valencia, Edwin G., et. al Partnership and Corporation Accounting, 3rd Edition, Valencia Education Supply, Baguio City, 2009-2010. Valix, Condrado T, Theory of Accounts, GIC Enterprises and Company, Incorporated Philippines, 2010 Edition.

Electronic Sources http://en.wikipedia.org/wiki/vulcanization#overview http:/ www.firestonecompleteautocare.com/ http://www.autoservicecentre.ca/home.htm http://en.wikipedia.org/wiki/Auto_detailing http://www.familycar.com/CarCare/AlignmentBalance.htm

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MARKET SURVEY QUESTIONNAIRE Direction: Kindly answer this honestly and accurately. Kindly put a check () on the space provided before your corresponding answers. Some questions may require you to check more choices. Name of Respondent: _______________________ Address: _________________________________ Occupation:_______________________________

1. Profile of respondents: a. Age _18-25 _26-33 _34-41 _42-45 b. Gender _female _male c. Monthly Income _below 5,000 _5,001-10,000 _10,001-20,000 _20,001-up 2. Are you willing to have vulcanizing services in Ubay? _yes _no 3. What kind of vehicle do you own? _motorcycle _4-wheels _6-wheels _others, please specify 4. How do you want your flat tire serviced? _Done quickly but reliable _Carefully without making additional damage to the time and rims _Slow but sure

_Comfortable waiting 5. What particular vulcanizing shop in Ubay? _KCJ & DNB Motor Parts _ODINGs Motor Parts _Ubay Motor Parts _Chong Vulcanizing Shop _Son-oc Vulcanizing Shop 6. What probable reasons, why you prefer this vulcanizing shop? _Accessibility to transportation _Good personal services _Cleanliness and sanitation _Convenience and time saving 7. What services do you want to avail for your vehicle? _car detailing _Aligning _Vulcanizing _Wheel balancing 8. Are you satisfied with their services? _Yes _No 9. How often do you in visit tire/car accessory shop?

_Often to see new items _Only when tire is flat _Regularly for the tire check up 10. How often your vehicle tire check in vulcanizing shop? _Weekly _Monthly _Semi-Annually 11. How do you know about our shop? _Advertising (media) _Word of mouth _Through letters _Brochure 12. Why are you interested to choose our shop? _Hi-tech equipment _More services from other _Well trained personnel 13. What factors would make you come back for tire or vehicle services in our shop. _Our courteous and respectful personnel _Our clean and safe working area

QUESTIONNAIRES TABULATION Table 1 PROFILE OF THE RESPONDENTS a. Age 18-25 26-33 34-41 42-45 46 and above Total F % 22 16 22 31 9 100%

1 100

The table shows 22% of the respondents are of 18-25 years of age, 16% are of 26-33 years of age, 22% belongs to 34-41 years old, 31% belongs to age bracket of 42-45 years old, and 9% are of 46 years old and above. Table 2 b. Gender Male Female Total F 14 86 100 % 14% 86% 100%

The table shows that 14% of the male and 86% respondents are female. Table 3 c. Monthly income Below 5,000 5,001 - 10,000 10,001 20,000 20,001 and above Total F 50 26 12 12 100 % 50% 26% 12% 12% 100%

Table 3 shows that, 50% are having an income of below 5,000.00, 26% are having an income raging from 5,001 10,000.00, 12% having monthly income of 10,001 20,000.00, and 12% have an income of 20,001 and above monthly. Table 4 Willing to have vulcanizing Shop Yes No Total F 85 15 100 % 85% 15% 100%

As revealed in Table 4 that 85% of the respondents willing to have a vulcanizing shop in Ubay, and only 15% is not willing to have it. Table 5 Kind of vehicle owned Motorcycle 4 wheels 6 wheels Others Total F 72 37 6 3 118 % 61.02% 31.35% 5.08% 2.5% 100%

As presented in table 4, it shows that 72 (61.02%) of the respondents have motorcycles, 37 (31.35%) owned 4- wheels, 6 (5.08%) having 6-wheels, and 3 (2.5%) others. Table 6 Flat tire service they want Done quickly but reliable Carefully without making additional damage to the time and rims Slow but sure Comfortably waiting Total F 48 36 14 2 100 % 48% 36% 14% 2% 100%

Table 5 shows, 48% wanted flat tire service to be done quickly but reliably, 36% to be carefully done without making additional damage to the time and rims, 14% will most likely to be done slowly but surely and 2% wanted to wait comfortably. Table 7 Particular Vulcanizing shop in Ubay KCJ AND DNB ODINGs motor parts Ubay motor parts Chong vulcanizing shop Son-oc vulcanizing shop Total F 48 10 28 2 10 98 % 48.98% 10.20% 28.57% 2.04% 10.20% 100%

As presented in table 6, 48(48.98%) of the respondents visited the KCJ & DNB Vulcanizing shop, 10 (10.20%) preferred ODINGS motor parts, 28(28.57%) visited Ubay Motor parts, 2(2.04%) in Chong vulcanizing shop and 10(10.20%) Son-oc Vulcanizing shop.

Table 8 Probable reasons in preferring a vulcanizing shop Accessibility to transportation Good personal services Cleanliness and sanitation Convenience and time saving Total F 60 24 10 6 100 % 60% 24% 10% 6% 100%

As a result of the survey, 60% of the respondents preferred a particular vulcanizing shop because of its accessibility to transportation, 24% because of its good personal services, 10% by its cleanliness and sanitation and 6% convenience and time saving.

Table 9 Services they want to avail Car detailing Aligning Vulcanizing Wheel balancing Total F 40 22 44 14 120 % 33.33% 18.33% 36.67% 11.67% 100%

Table 8 reveals that, 40(33.33%) of the respondents wanted to avail car detailing, 22(18.33%) preferred aligning, 44(36.67%) choose vulcanizing shop and 14(11.67%) wanted wheel balancing. Table 10 Satisfied with the services offered Yes No Total F 96 2 98 % 97.96% 2.04% 100%

Based on the survey, 96(97.96%) of the respondents are satisfied with the services of the other vulcanizing shops while, 2(2.04%) are not satisfied with the services. Table 11 Frequency in visiting tire/car accessory shop Often to see new items Only when tire is flat Regularly for the tire check-up Total f 50 36 20 106 % 47.17% 33.96% 18.87% 100%

Table 10 shows, 50(47.17%) of the respondents visited tire/car accessory shop often just to see new items, 36(33.96%) only when the tire is flat and 20(18.87%) visited regularly for the tire check-up.

Table 12 Frequency in vehicle tire check in vulcanizing shop Weekly Monthly Semi-annually Total f 16 52 30 98 % 16.33% 53.06% 30.61% 100%

Presented in table 11, 16(16.33%) of the respondents checked the vehicle tire in a vulcanizing shop once in a week, 52(53.06%) once in a month and 30(30.61%) checked it semiannually. Table 13 How do you know about our Shop Advertising/Media Word of Mouth Through leaflets Brochure Total f 42 48 10 2 102 % 41.18% 47.06% 9.80% 1.96% 100%

Shown in table 12, 42(41.18%) of the respondents knew about the tire tech auto servicing through advertising, 48(47.06%) by the word of mouth, 10(9.80%) through leaflets and 2(1.96%) through brochure. Table 14 Why are you interested to choose our Shop Hi-tech equipment More services from other Well-trained personnel Total f 52 32 18 102 % 50.98% 31.37% 17.65% 100%

Table 13 reveals that 52% of the respondents are interested to choose Tire Tech Auto Servicing because of the high-tech equipment used, 32% because of more services than others and 18% because of its well-trained personnel.

Table 15 Factors that would make you come back for tire or vehicle services in our shop Quality services Courteous and respectful personnel Clean and safe working area Total f 78 20 6 104 % 75% 19.23% 5.77% 100%

Table 14 revealed that 78% of the respondents chosen Tire Tech Auto Servicing because of its quality service, 20% because of the courteousness and respectfulness of the personnel and 6% by its clean and safe working area.

CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Michelle B. Aniasco Benliw, Ubay, Bohol September 14, 1986 25 Male Single Filipino Mr. and Mrs. Michael Aniasco Its better to give than to receive.

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Sacred Heart learning and Formation Center Ubay National Science High School Bohol Northern Star College

CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Cyrus R. Bernil Tipolo, Ubay, Bohol August 17 1991 20 Male Single Filipino Metodio P. Bernil Winners never quit, quitters never wins

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Tipolo Elementary School Holy Child Academy Bohol Northern Star College

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CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto :

: : : : : : : :

Ina Barbara M. Bonghanoy Poblacion, Ubay, Bohol October 23, 1990 21 years old Female Single Filipino Mr. & Mrs. Teodulfo D. Bonghanoy

Mans action whether good or bad depends to their cause and intention..

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Ubay Central Elementary School Holy Child Academy Bohol Northern Star College

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CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Lila Mae Bulaga Bay-ang, Ubay, Bohol December.16, 1990 21 years young female Single Filipino Mr. & Mrs. Alexander Bulaga Dont Count the things which you done to others..=)

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Bay-ang, Elementary School Camambugan National High School Bohol Northern Star College

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CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Mary Ann O. Delagon Trinidad, Guindulman Bohol April 6, 1989 22 Female Single Filipino Mr. & Mrs. Antonio Delagon Plan your work, work your plan.

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Trinidad Elementary School Guinacot National High school Bohol Northern Star College

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CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Ryan Leoje B. Montealto San Pascual, Ubay, Bohol September 11, 1988 23 Male Single Filipino Mr. & Mrs. Jesus Montealto I dont study for grade, but for life

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : San Pascual Central Elementary School San Pascual National Agricultural High School Bohol Northern Star College

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CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Maricris B. Namang Bayongan, San Miguel, Bohol April 24, 1989 22 Female Single Filipino Mr. & Mrs. Tirso Namang Commit to the Lord whatever you do and your plans will succeed...

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Bayongan Elementary School San Miguel High School Bohol Northern Star College

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CURRICULUM VITAE

Name Address Natal day Age Gender Status Citizenship Parents Motto

: : : : : : : : :

Louie R. Palmero Son-oc Poblacion Ubay Bohol May 18, 1989 22 Male Single Filipino Mr. & Mrs. Floripes Palmero Miracles happen for those who believe

EDUCATIONAL BACKGROUND Elementary Secondary Tertiary : : : Ubay Central Elementary School Holy Child Academy Bohol Northern Star College