Operational Performance of Purified Water Refilling Stations in Maragondon

Cavite West Point College Operational Performance Of Purified Water Refilling Stations In Maragondon, Cavite

OPERATIONAL PERFORMANCE OF PURIFIED WATER REFILLING STATIONS IN MARAGONDON, CAVITE

An Undergraduate Thesis Presented to the Faculty of BS Business Administration Cavite West Point College

In Partial Fulfillment of the Requirements

ANNA ROSE EVANGELISTA

BSBA-IV

April 2017

Chapter I College of Business Administration April 2017 •


THE PROBLEM AND ITS BACKGROUND Introduction

Water is a transparent and nearly colorless chemical substance that is the main consistent of earth’s

streams, lakes and oceans, and the fluids of most living

organisms. It’s chemical formula is H2O meaning that its molecule contains one oxygen

and two hydrogen atoms, that are connected by covalent bonds. Water is the most important liquid we know. Its everywhere we look. Water is in the ground and in the air we breathe. All animals, plants and human need water to survive. Water has formed our earth since its beginning. It also prevents the earth from becoming too hot or too cold . The influx of water refilling stations in most urban commodities is the private sector’s response to the perceived safe water supply needs by households. While

supplementing the services provided by public water utilities, these refilling stations also carry out a significant role in providing public health and in preventing preven ting waterborne illness among the population. These stations purify water sourced from either a private deep well or a water line tapped from the local public water system using income advanced method called reverse osmosis for cleaner and potable water. The researcher conducted the study about the operational performance of Purified water business in Maragondon, Cavite to provide knowledge and information about the business profile, operational performance, common problems encountered by the owners in terms of marketing, management, technical and financial aspects; and the business initiatives that will enhance the operational performance of the business.

College of Business Administration April 2017 •

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Theoretical and Conceptual Framework

Interview and Survey Method about: Marketing WATER REFILLING STATIONS in Maragondon, Cavite

Management Technical and

Operational Performance

Financial aspects

Figure 1.1 IPO Model

This figure shows the conceptual framework and basic foundation of the study. It identifies the purified water refilling stations in the Municipality of Maragondon, Cavite. Through interview and survey method, it aimed to gauge the operational performance of each business in terms of marketing, management, technical and financial aspect.


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Statement of the Problem

The study aims to assess the operational performance of Purified Water Business in Maragondon, Cavite. More specifically it aims to answer the following questions: 1. What is the profile of participants regards to its: its: a. Type of Business Ownership b. Length of Business Operations c.

Initial Investment

d. Target market e. Average Monthly Income 2. What about the the operational performance of purified water bus. In terms of: of: a. Marketing b. Management c.

Technical and

d. Financial aspects 3. What are the problems encountered by the the owners of purified water business in terms of: a. Marketing b. Management c.

Technical and

d. Financial aspects 4. What are the business operation initiatives that will enhance the operational performance of purified water business in Maragondon, Cavite?


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Significance of The Study

The importance of the study aims to know the operational performance of purified water business in Maragondon, Cavite. Moreover, the following are expected to benefit: 1. Owners. They will be able to identify the solutions that may aid them to solve t

the problems they encounter in the business operations. 2. Employees. They will be able to identify the various aspects that promotes

financial stability of their company and find bases on how they can contribute to each identified aspect.

3. Student. The study can serve as future reference for further studies and

supplement them the necessary knowledge needed to start and operate a purified water business.

Scope and Delimitation

The researcher focused on determining the operational performance of purified water business/ refilling stations in the Municipality of Maragondon, Cavite. Basically, it will determine the profile of the business entities, the operational performance of Purified Water Business/ Refilling Station in terms of marketing, management, technical and financial aspect, the problems encountered by the owners, and the business performance initiatives that helped them enhance the operational performance of their business. The study was conducted from Dec. 2016 to February 2017.


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Hypothesis

Ho: The operational performance of Purified Water Refilling Stations in Maragndon,

Cavite is not affected by its marketing, management, technical and financial aspe cts.

Definition of Terms Approved water source - refers to the source of water, either spring, drilled well, public

or community water system or any other source that has been inspected and the water sampled, analyzed and found safe and sanitary, with or without treatment, in accordance with prescribed quality standards. Bottled water - refers to water that is intended for human consumption and that Is

sealed in bottles or other containers with no added ingredients except that it may optionally contain safe and suitable anti-microbial agents and may optionally contain minerals such as, but not limited to fluorides, chlorides, carbonates and sulfates, including flavoring within limitations established by the bottler's country. Bottled water may be used as an ingredient in beverages such as, but not limited to, diluted juices and flavored bottled waters. It does not include those food ingredients that are declared in ingredient labeling as "water" and or carbonated, disinfected, filtered, seltzer, soda, sparkling and tonic water. Drinking Water- refers to water intended for human consumption or for use in food

preparation. Water Refilling Stations- refers to the selling for profit either wholesale or retail of

water placed in refillable water containers or in customer’s containers in refilling

stations.


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Operational Performance-performance measured against standard or prescribed

indicators of effectiveness, efficiency, and environmental responsibility such as, cycle time, productivity, waste reduction, and regulatory compliance Marketing-the action or business of promoting and selling products or services,

including market research and advertising. Management- is the administration of an organization, whether it be a business, a not-

for-profit organization, or government body. Management includes the activities of setting the strategy of an organization and coordinating the efforts of its employees or volunteers to accomplish its objectives through the application of available resources, such

as

financial,

natural,

technological,

and

human

resources.

The

term

"management" may also refer to the people who manage an organization. Technical Aspect of a Business- aspect involving the use of sorts of machines,

processes, and materials that are used in industry, transport, and communications in a business industry. Financial Aspect of a Business- aspect involving the money that ownership has

acquired to build the business, business's earnings and expenses refer to income and payments and the timing and rate a business makes and spends money .


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CHAPTER II Review of Related Literature

In this literature review, presents selected readings, survey results and related studies conducted globally and locally to provide further support for this study

Local Literature

In the Philippines, bottled water has established a major foothold. In some places, piped-water systems are lacking; in others, people are uncertain about biological contaminants, disinfection by-products from the chlorination process, taste, and odor. Even in the capital Manila, only about three fourths of the population receives piped water from the municipal authority. Outside Manila far fewer people have access to clean water distribution. In both locations, these families must find alternate water sources if they are to avoid cholera epidemics and other health problems spawned by the foul, contaminated water available in their neighborhoods. A solution has appeared in the thousands of water refilling stations that now dot the Philippine landscape. These shops began as privately-run community sources, where consumers would bring containers and fill them for a per-gallon fee that is a small fraction of commercially bottled water’s cost. Deman d is such that most stores now offer

home delivery for regular customers.


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Most shops produce between 3,000 and 12,000 liters of water per day. Typically, the supply comes from the pipes of municipal concessionaires. Entrepreneurs invest in treatment equipment and further purify their product before sale. Other shops are likely supplied by unauthorized or illegal deep well diggings. A proliferation of these private sources could have detrimental effects on groundwater reserves and subject them to contamination. The government has accepted private water shops as a necessary weapon in the fight against waterborne disease and regulates their quality control practices and final product as much as possible. However, given the large number of shops, it is difficult to adequately monitor the entire industry. Though many in the Philippines benefit from the availability of water shops, the system does not address the long-term water delivery and sanitation infrastructure improvements necessary to provide reliable water to all. More than 60% of households in Metro Manila that get their drinking water from refilling stations may be at risk of waterborne diseases. A study by the Pediatric Infectious Disease Society of the Philippines shows that the risk of contamination is high for those who get their supply from local refilling stations. Results showed that while freshly refilled water from refilling stations does not contain microorganisms, there’s a great risk of contamination during the improper

handling of containers and poor compliance with regulatory standards. Another independent, informal survey found that 70% of water refilling stations in two major cities in the Metro do not comply with the stringent water safety guidelines outlined by the Department of Health. A total 441 of the 630 surveyed licensed refilling


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stations did not fully meet the requirements of DOH Administrative Order 2007-012 or the Philippine National Standards for Drinking Water (PNSDW). The problem is not in the purified water, but how your container is received, washed, delivered, and handled by you and/or the refilling station’s staff.

Most violations are about a refilling station’s operations— how they handle your

containers. All too often, contamination can happen anytime from dropping off your container to having it delivered to your home. As required by law, all water refilling stations must abide with the following: 1.

Prescribed Standards and Procedures

Water refilling stations are required to follow the prescribed standards and procedures in Chapter II of the Implementing Rules and Regulations of the Sanitation Code of the Philippines, as outlined in Presidential Decree 856. Among other things, it requires all water refilling stations to be located at least 25 meters away from any source of pollution. The station should also not be in an area prone to flooding. Proprietors are also required to have samples tested by a DOH-accredited laboratory to ensure these follow the standards outlined in the PNSDW. 2.

Permits

Refilling stations need several permits to operate, arguably the most important of which is the Sanitary Permit. To get this, they need to obtain a satisfactory rating from the local health office. They’ll need to score 50 points out of a possib le 100 in a 20-item checklist of DOH standards. It’s interesting to note, however, that output water testing

positive for bacteria or failure to properly clean water containers only merit a 5-point deduction. That means they still have a good chance of passing the sanitary inspection


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even if their water tested positive for bacteria. Permits should be posted in prominent areas where consumers can easily see and inspect it. 3.

Container Handling

The DOH also has certain rules for handling, refilling, and delivering containers. The containers need to be properly cleaned and sanitized using DOH-approved sanitizing solutions to get rid of germs and other microbes. Water and dishwashing soap are not enough to sanitize the containers, at least based on DOH standards. 4.

Station Operations The Health Department requires all personnel handling water refilling tasks to

wear protective gear, and not just casual wear, or worse, sando and shorts. The staff at your local refilling station should be wearing face masks, gloves, and scrub suits to prevent contamination. 5.

Storage and Delivery One of the more common violations, your container should not be delivered in

open-air bikes or vehicles. The refilled water should be delivered using sanitized transports that keep the water temperature at around 25-28° C (room temperature). The delivery vehicle should not expose the containers to dust, heat, pollution, and direct sunlight.


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6.

Bottled Water Many water refilling stations sell water in pre-packaged, often small bottles. This,

however, is not allowed, per the Food and Drug Administration (FDA). Water refilling stations are only allowed to refill, not sell pre-packaged, bottled water. Though a bit lacking in scope, an amendment to the DOH Administrative Order 18-A series of 1993 prohibits refilling stations to sell, supply, or distribute bottled water in pre-packaged containers with certain claims (e.g., mineral, natural, spring, well water, etc).

Drinking for Safety

As a safety precaution, it would be best to get your drinking water only from licensed and well-maintained refilling stations that fully and consistently comply with all regulatory standards. Water purifiers are also a great safeguard against unsafe, contaminated water. Its advanced water purification system cleans water right before you drink it, eliminating risks from manual handling and improper transport of water containers. Some uses germ kill technology that gets rid of harmful microbes, metals, and other impurities, meeting the benchmarks of the US Environmental Protection Agency for microbiological safety. Water is very essential for our daily life routine. People need to drink water in order to live. However, because of human introduction, directly or indirectly, of substances into the marine environment, our waters become polluted and undrinkable. Because of the high demand for cleaner water, starting a water refilling station business becomes one of the most promising and profitable business today. The demand at the water refilling stations – water stores that sell purified water – is now increasing. The quality of purified water conforms with the national standards for


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drinking water and is even better than the quality of water produced by traditional water supply systems in terms of removed impurities. Over the years, as the demand for cleaner water becomes higher, the price of household water purifiers and bottled water has become prohibitive. Water refilling stations managed by private entrepreneurs offer a cheaper and more convenient solution to the public’s drinking water needs than bottled water or the use of household

filters. At present, about 3,000 water refilling stations have proliferated nationwide. They sell purified water of comparable quality with bottled water at a lower price. For example, the current price per gallon of refilled purified water in Metro Manila ranges from P 50 to P 120 per 5-gallon container or about P 2.50 to P 6.00 per liter while the bottled water is sold at P 12.00 to P 25.00 per liter. Household filters, on the other hand, cost P 5,000 to P 25,000 per unit ( 1 US $ = P 56 in 2004). In Metro Manila, most of the water refilling stations are connected to the pipes of two concessionaires: Maynilad Water Company or Manila Water Company for their source of raw water while in other areas they opt to use private deep wells. The “potable water” supplied by the providers is then further purified by utilizing a combination of

water treatment equipment, such as sediment filters, carbon filters, water softeners, reverse osmosis membranes, ultra-violet lamps, and ozone generators. Typical water refilling stations can produce 3,000 to 12,000 litres of purified water per day. In previous years, most of the people were bringing a container to a water refilling station to buy purified water. Nowadays, because of convenience on the part of the consumers, purified water in 5-gallon (22.7 litres) containers are delivered by the station directly to the people’s


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home. Aqua Sure, a water refilling station in Metro Manila, can deliver 5,500 gallons (25,000 litres) a day to its 8,000 household clients. Features of a water refilling station

Structurally, water refilling station can be operated with a minimum area of at least 20-25 square metres. It comprises the following sections: refilling and selling room , enclosed water purification room, container washing and sanitizing room, storage room for empty and refilled containers, source water storage facility, toilet and an office. To operate the water store, about five employees are needed. 1 – Manager – Overseas store operations at least 4 hours a day 1 – Accountant/Bookkeeper – Makes financial statement of business operations 1 – Administrative assistant – Logs and handles cash sales and purchases 1 – Front Liner – Accepts and refills containers of customers 1 – Technical Asst. – Maintains and runs the machine 1 – Driver/Delivery Man – Transport refilled containers to customer’s home The main processes in a water refilling station is dictated by raw water quality. The typical steps are filtration (several stages), softening, and disinfection. The machines that could be installed for such processes are the following: 1. Multi-media sediment filter – removes sediments such as rust, sand and particles that are invisible to the naked eye; employs a total of 5 filters. 2. Ion exchanger – replaces hard minerals with soft minerals.


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3. Activated carbon filter – removes all organic chemicals, herbicide, pesticide, offensive odor and bad taste. 4. Reverse osmosis membrane – the heart of the system and the most expensive unit; removes inorganic minerals, bacteria and viruses while retaining its oxygen content. Since the filter size is very small at less than 0.05 micrometre, the product water could have a total dissolved solids (TDS) of less than 10 ppm. The filtration process rejects about 50 percent of raw water volume. 5. Post-carbon filter – improves the taste of water . 6. Ultraviolet lamp – ensures that the water is free from disease-causing microorganisms. 7. Ozone generator – inhibits the growth of bacteria in the product tank and prolongs the shelf life of water.

The efficiency of water purification system in removing impurities is high. The 10 water quality parameters measured by Magtibay (2001) showed an average of 80 percent efficiency. Institutions and policies

The agencies directly involved in the establishment operation of water refilling stations are as follows: 1. The Department of Health (DOH). DOH is the main agency responsible for protecting the health of the people. The Sanitation Code of the Philippines


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mandates DOH in protecting drinking water quality. Consequently, DOH issues implementing rules and regulations prescribing sanitary standards for water supply systems, including water refilling stations. 2. The Center for Health Development (CHD) is the regional branch of DOH. Its main function is to provide technical assistance to local government units and to monitor DOH programme implementation which includes water quality and sanitation standards. For water refilling stations, CHD is mandated to issue initial and operational permits. 3. The Local Government Units (LGUs) are mandated by Presidential Decree (PD 856) to issue sanitary permit, sanitary clearance, health certificates, certificate of potability, drinking water site clearance and closure order (if necessary) and to conduct sanitary inspection of WRS. 4. The Water Quality Association of the Philippines Inc. (WQAP) is an organization of private firms who are engaged in the manufacture, sale, and distribution of water refilling station equipment and supplies, as well as water treatment and purification equipment and technology for household, institutional, commercial and industrial applications. About 85 percent of its 250 members operates water refilling stations. 5. Association of Water Refilling Entrepreneurs (AWARE) concentrates on resolving business management issues of its members. Presidential Decree No. 856 (PD 856) or the Sanitation Code of the Philippines is the main law requiring all establishments to comply with existing sanitary standards to protect public health. Guidelines for operating a water refilling station are indicated in the Supplemental Implementing Rules and Regulations on Water Supply of PD 856 issued in 1999.


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Water quality monitoring

Source water and product water are subject to regular monitoring by the local health office. The national standards for drinking water contains 54 parameters that must be complied with. Only DOH-accredited laboratories are allowed to conduct water testing and analysis. The frequency of monitoring is as follows: Bacteriological quality – at least monthly Physical quality – at least every six (6) months Chemical quality – at least every six (6) months Biological quality – at least once a year Monitoring of radioactive contaminants shall be done only if there is significant input of radiation from the surrounding environment.

Procedures in starting a water refilling station business:

The following are the procedures in putting up a water refilling station: 1. Make a Business Plan: this is created to outline the business’s vision, brand values, identity, and how it has to operate to become successful. It also helps in focusing on the business goals and making the business attractive to investors. 2. Right Location: finding a good location is one of the problems a new business owner must face. The location needs to be near the target market, making the business visible to people or look for a site that is heavy in foot traffic. Situate in places near schools, hospitals and clinics, offices, hotels, apartment and high-rise buildings, and subdivisions.


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3. Look for a Supplier: find a supplier of water refilling equipments and ask for their price list. Don’t settle on one supplier only. If their prices are too high for the budget then find

another supplier and compare their prices. After studying the quotations and the total costs, decide which is enough for the budget, and choose the right equipments to purchase. Don’t buy cheap machines and equipments as these will not last long.

After finalizing the location for the water refilling station, contact the supplier and ask for a layout plan for constructing the water refilling station. But a good supplier will go to the area to measure, evaluate and make the right design for the water refilling station business. Oftentimes, the supplier will ask for a down payment before starting assembling the machine, the lead time is about 2-3 weeks. Always ask for a receipt when paying for a down payment. After closing the deal with the supplier, the construction of water refilling station which will take 3 to 4 weeks to finish may start. At the same time, start making the deep well if this will be the preferred water source. Ask the supplier to visit the site to make sure the carpenters are strictly following the layout plan, importantly the design on the washing area, piping and drainage). While the construction is on-going, application for a business permit must be done to save time. 4. Register the Business: this will make the business legal and functional. For a single owner, go to DTI, which will issue a certificate of registration of business name (list at least 5 to 10 preferred business names). After getting the certificate for registered business name from DTI, go to the local municipal office and apply for a Mayor’s

business permit. The process will take about 2 to 3 weeks depending on the area. Some municipal office will require to submit (a) water analysis of potability (physical, chemical and bacteriological test) from your raw or source of water. (b) Engineering College of Business Administration April 2017 •

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drawings (building and electrical plan) signed by a sanitary engineer and other common legal requirements when applying for a building permit. After getting the business permit and operation permit from municipal office, go to BIR and fill-up form 0506 and pay at the counter. Once approved by the BIR, print your receipts in the printing press. Just bring and show them the approved BIR form 0506. This point, one can start buying other supplies the business will need like water containers, seals, heat gun, sanitizer soap, etc. At the same time, constructing the business’s signa ge and sticker labels for the products may be done.

Once the construction is finished and the water source is ready, the installation of the machines and equipments (it’s better to do it at night to avoid people around) can be

scheduled. Complete installation takes 1 to 2 days only. Dry run the machine and equipments for 1 to 3 days before selling the product, or get a sample for a water analysis. Go to the nearest DOH office and ask the procedures on how to test the water. (Tip: it’s better to get a water sample after a month of

operation to make sure the result of water analysis is good.)Wait for the result of water testing. If it failed the test, call immediately the one who installed the machine and let them check and analyze why. Foreign Literature

There are two main sources of welfare; manmade capital and services of natural capital. Although the scarcity of manmade capital, i.e. consumer goods, has been reduced to a low level for much of the world since the Industrial Revolution, the abundance of the goods and services produced by nature itself is threatened by human attributes that tend to increase consumption while exhausting the resources (Daly & Farley, 2011). Water, one of the products of nature, is a necessity of life for everyone in the world regardless of their gender, income levels, social status or age. College of Business Administration April 2017 •

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The global water consumption has increased by three times over the last 50 years, and researchers claim that almost 50% of the world population will be residing in areas with no sufficient supply of water by 2050, especially in Africa and South Asia (Bruinsma, 2009; Daly &Farley, 2011). It is now of concern to an increasing number of researchers that some parts of the world, especially the developing countries, are already suffering from the lack of clean water supply, which is originated from several factors such as urbanization, population growth and industrialization (Kessides, 2004; Biro, 2012; Dixit, 2008). Water has been considered as a public and social good for years with the arguments that every human being needs water to survive and everyone is supposed to have access to it regardless of their qualifications (Brei & Böhm, 2011; WHO & UNICEF 2005). Sripad and Osberg (2010) suggest that water has no close substitute and it is vital for life, which gives it a less elastic demand than the demand for other goods. However, the wide recognition of water as an economic good started with the Dublin Conference on Water and the Environment in 1992 (Savenije, 2002). Recent arguments suggest that water is a scarce resource whose management requires a lot to invest in its infrastructure and distribution (McIntyre, 2011; Rodriquez et.al, 2012) and that water is usually misused when the users are not supposed to pay for it (Mackwara, 2011; Savanije & Zaag, 2002). Constituting probably the earliest, yet still inspiring discussions on the value of water, Adam Smith brought up the comparison between water and diamond trying to answer the question of why water has no value in exchange while it has great value in use unlike a diamond with great value in exchange but no value in use. David Ricardo, in response to Smith, raised the question of “Why is water without value, but because of its abundance?” implying that the value of water is determined by its sca rcity and the

equilibrium between supply and demand. Although scholars provide answers from the


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perspectives ecological economy and marginal utility theory, the available amount of supply and the complexity of access remain the fundamental factors in determining the value of water. However, the recently increasing complexity of the relationship between the suppliers and consumers of water signifies that the issue are now to be addressed using multiple perspectives from different scientific disciplines. (White, 2002). Commercialization of water in Asia, as an example of such complexity, has been in place for years due to the governments’ failure in management of water resources and it

was prompted by the wave of economic liberalization in 1990s as well as the financial crisis in 1997 (Kanbur, 2007). The ADB approved the new Water Policy in 2001 that considers water as “socially vital economic good”, and this has led water sector reforms encouraging

private entrepreneurs to invest in IWRM in Asian countries such as Indonesia, The Philippines, Sri Lanka and Nepal (Corral, 2007). Although the privatization of water resources to multinational companies has attracted the biggest attention so far, it is not the only way that water is treated as an economic good. Having a much longer history in Asia, bottled water is a cross-cutting issue between the debates considering the commodification of nature and the free movement of capital shaping the provision of public services. Jaffee and Newman (2013) suggest that the expansion of bottled water changes the prospects for piped water and that the growth of this relatively new commodity creates a more serious effect in the long term than that generated by piped water privatization. The business pattern seen in bottled water sector is that multinational companies enter the water market in developing countries by targeting upper/upper-middle class consumers, while the remaining consumers are served by local vendors and WRSs with unbranded bottled water (Gleick, 2004). Involvement of private sector in water distribution in Jakarta can be considered as a representative case as it provides an example of water sale in developing countries, especially in South East Asia known with rapidly increasing population rates. Although four different


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sources of water (ground water, pipe water, branded bottled water and WRSs) are available for the use of the consumers in Jakarta; the natural water resources (rivers, lakes and groundwater) are neither abundant nor safe for drinking. The case of WRSs is especially of importance in such cases where the majority of the population depend on bottled water for at least a part of their drinking water supply, rather than tap water that has been privately managed and distributed (Jaffee & Newman, 2013).


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Chapter III

Methodology

This chapter discusses the research method used in the study, the procedures employed in the administration of the method, the research instrument and statistical treatment of data. It also presents the respondents and the sampling procedure used in their selection

Research Method

The descriptive method of research was used in the conduct of this study. It assessed how the respondents perceived the factors that affects the operational performance of purified water business/refilling stations and possible recommendations for such. It is targeted on their verbal description of the aforementioned characteristics through a rating scale used in the study.

Respondents of the Study

The target population is composed of 7 purified water business/ refilling stations operating in the Municipality of Maragondon, Cavite. They were chosen using purposive sampling procedure. The main goal of the researcher for choosing this specific procedure is to focus on the particular characteristics of a population that are of interest, which will best enable her to answer the established research questions. The respondents were identified after conducting an interview with the Business Processing and Licensing Officer of the municipality to identify the registered business operating in the said industry.


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Research Instrument

To gather the much-needed data for this research study, the researcher used survey questionnaire which was drafted and scrutinized by the adviser before a final draft had been reproduced and distributed to the respondents. It consisted of items that pertained to the respondents’ business profile including the type of business ownership,

length of business operation, initial investment, target market and average monthly revenue generated. There had been two set of questions relating to how the respondents perceive the factors that affect their business operational performance in terms of marketing, management, technical and financial aspect which they were asked to answer completely as the data from this section will make up the findings of the study.

Data Gathering Procedure

In order for the researcher to collect the relevant information she needed for her study, first she prepared a request for an interview with the Business Processing and Licensing Officer of Maragondon, Cavite to identify her target population which are the registered purified water refilling stations in the municipality. After the interview had been set and conducted, a survey form was drafted. Upon approval, the forms were reproduced according to the number of the study’s target population.

The respondents were chosen using purposive sampling procedure were asked to completely fill up the form as this represented the findings of the study and the basis for conclusion and recommendation.


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After the survey forms were completely filled-up based on the number of respondents the results were tallied, tabulated and statistical treatment was applied to validate the hypothesis, generate a conclusion and formulate recommendation.

Statistical Treatment of Data

For preliminary statistical treatment, the researcher used weighted mean. This was used to measure the respondents’ assessment. It was computed by multiplying the

value in the groups by appropriate weight factors and the products were summed up and divided by the total number of respondents. This was used to answer the specific problems of this study. The formula for weighted mean is shown below: X = F(1)+ F(2)+ F(3)+ F(4)+ F(5) N Where: X= Weighted Mean F= Weight of each item N= the total number of respondents

The data were interpreted using the Five-Point Likert Scale as the criteria. It served as the basis for the interpretation of the data.


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The concept boundary of role was used as well as the options, to wit:

Scale

5

Ratings

4.50-5.00

Description

Interpretation

Strongly

When the item described by the

Agree

statement is true

When the item described by the 4

3.50-4.49

Agree

statement is frequently true.


2.50-3.49

Neutral

statement is neutral.


1

1.50-2.49

1.0-1.49

Disagree

statement is not true all the time.

Strongly


Disagree

statement rarely true.

Table 3.1 Five-Point Likert Scale


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CHAPTER IV

Results and Discussion

This chapter presented the gathered data in tabular form and its analysis on the operational performance of Water Refilling Stations in the Municipality of Maragondon, Cavite.

Problem No. 1

1. What is the profile of participants regards to its: a. Type of Business Ownership b. Length of Business Operations c. Initial Investment d. Target market e. Average Monthly Income

Table 4.1 Profile of Water Refilling Stations According to Type of Business Ownership

Type of Business Ownership

Frequency

Percentage

Single Proprietorship

5

71.42 %

Partnership

1

14.29 %

Corporation

1

14.29 %


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Table 4.1 shows the profile of the water refilling stations according to its type of business ownership. As tabulated, majority of the said business entities are classified under single proprietorship composing the 71.42% of the population. On the other hand, there is one (1) water refilling station that is classified under partnership composing the 14.29% of population and the remaining 14.29% is classified as a corporation.

Table 4.2 Profile of Water Refilling Stations According to Length of Business Operation

Length of Business Operation

Frequency

Percentage

0- 1 year

1

14.29 %

2-3 years

3

42.86 %

3-4 years

2

28.56 %

5 years and above

1

14.29 %

Table 4.2 which collates the profile of the water refilling stations according to length of business operation shows that majority of the population (3 out of 7) or 42.86 % has been operating for 2-3 years; 28.56 % or 2 out of 7 business entities have been

operating for 3-4 years; while the remaining 2 business entities have been operating for 0-1 year and 5 years and above respectively; each composing 14.29% of the

population.


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Table 4.3 Profile of Water Refilling Stations According to Initial Investment

Initial Investment

Frequency

Percentage

Php 100,000- Php 350,000

1

14.29 %

Php 350,001- Php 500,000

0

0 %

Php 500,001- Php 750,000

1

14.29 %

Php 750,001 and above

5

71.42 %

It can be interpreted from the data tabulated above that majority of the water refilling stations, 71.42 % (5 out of 7) have an initial investment of Php 750,001 and above. Meanwhile, there are 2 water refilling stations which had initial investment

amounting to Php 100,000- Php 350,000 and Php 100,000- Php 350,000 ; each comprising 14.29% of the population.

Table 4.4 Profile of Water Refilling Stations According to Target Market

Target Market

Frequency

Percentage

Household

7

100 %

Schools

4

57.14 %

Other Business Establishment

6

85.71 %

Collated data from the profile of water refilling stations according to their target market showed that 100% of the population covers the households (7 out of 7);


29


85.71 % (6 out of 7) also considers other business establishments as clientele and 57.14 % (4 out of 7) also covers schools for their valuable market. It may be observed

from the data that the respondents were allowed to tick as many options possible for this item.

Table 4.5 Profile of Water Refilling Stations According to Average Monthly Income

Average Monthly Income

Frequency

Percentage

Php 10,000 and below

3

42.86 %

Php 10,001- Php 50,000

4

57.14 %

Php 50,001- Php 100,000

0

-

Php 100,001 and above

0

-

Table 4.5 profiled the water refilling stations according to their average monthly income. It is observable that majority, 57.14 % (4 out of 7) have declared earning Php 10,001- Php 50,000 on average in a month while 42.86 % (3 out of 7) earns Php 10,000 and below on average in a month.

Problem No. 2

2. What is the operational performance of purified water bus. In terms of: a. Marketing b. Management c. Technical and d. Financial aspects


30


Table 4.6 Perceived Operational Performance of Water Refilling Stations in the Municipality of Maragondon, Cavite

Weighted

Verbal

Mean

Description

0

2.86

Moderate

0

0

3.14

Moderate

4

0

0

3.43

Moderate

5

0

0

3.29

Moderate

Aspect

5

4

3

2

1

Marketing

1

3

1

1

Management

1

3

3

Technical

0

3

Financial

0

2

Table 4.6 summarizes the perceived operational performance of water refilling stations. It is notable that the population has viewed their performance on average as moderate in all aspects . For ranking purposes, the population ranked their performance 1st in technical operations, 2nd in financial aspect, 3rd in management and 4th in marketing.

Problem No. 3

3. What are the problems encountered by the owners of purified water business in terms of: a. Marketing b. Management c. Technical and d. Financial aspect


31


Table 4.7

Perceived Marketing Problems Encountered by Business Owners of Water Refilling Stations in the Municipality of Maragondon, Cavite

Problems Encountered

1. Lack of adequate marketing finances and tools. 2. Lack of innovative marketing ideas. 3. Lack of mechanisms to materialize marketing strategies.

Weighted

Verbal

Mean

Description

0

3.43

Neutral

1

0

3.14

Neutral

2

0

3.00

Neutral

5

4

3

2

1

1

4

2

0

0

2

4

0

2

3

Table 4.7 collates the perceived marketing problems encountered by the population. It is notable that the business entities covered by the study as respondents believe that they their status towards adequate marketing finances and tools, innovative marketing ideas and mechanisms to materialize marketing strategies is neutral. With the data tabulated, it can be interpreted that they may have been minor

difficulties in marketing their company but considering the size of their business, it does not pose a serious threat on their profitability.


32


Table 4.8

Perceived Management Problems Encountered by Business Owners of Water Refilling Stations in the Municipality of Maragondon, Cavite


1. Lack of organizational functionality 2. Lack of manpower and resources

Weighted

Verbal

Mean

Description

0

3.14

Neutral

1

0

2.71

Neutral

6

0

2.14

Disagree

5

4

3

2

1

0

3

3

1

0

1

5

0

0

1

3. Dysfunctional communication channels between levels of organization

Table 4.8 tabulates the responses of the water refilling stations as to how they view their management. It has been manifested by the results that the population does not experience chaotic management problems. They believe that they have a neutral condition in terms of organizational functionality, manpower and resources . Meanwhile, they have disagreed on the item of dysfunctional communication between levels of organization . This can be used to interpret that the existing water

refilling stations have valued the management of the business as an important factor of its operational performance.


33


Table 4.9

Perceived Technical Problems Encountered by Business Owners of Water Refilling Stations in the Municipality of Maragondon, Cavite


1. Lack of adequate tools, equipment and machineries 2. Lack of technical operational skills of the manpower 3. Inadequate compliance to established standards

Weighted

Verbal

Mean

Description

0

3.71

Neutral

1

0

3.57

Agree

2

0

2.71

Neutral

5

4

3

2

1

2

2

2

1

0

5

1

0

0

5

The table above tabulates the data from the population regarding their perception of the status of the technical aspect of their business. It is observable that they have responded neutral on lack of adequate tools, equipment and machines and inadequate compliance to established standards . This may be interpreted that they

only have minimal difficulties in the aforesaid because before putting up the business they have a specific type and number of machines needed to start their operations. Also, they have to ensure that they meet the established standards set forth in that type of business before they can operate. Hence, minimal problems are encountered during the course of operations. However, they have agreed that the lack of technical and operational skills of manpower affects their operational performance .


34


Table 4.10

Perceived Financial Problems Encountered by Business Owners of Water Refilling Stations in the Municipality of Maragondon, Cavite


Weighted

Verbal

Mean

Description

0

3.00

Agree

0

3.28

Agree

5

4

3

2

1

0

2

4

1

0

3

3

1

1. Inadequate finances (in capital allocation) to support operational costs 2. Inadequate income generated to suffice operational costs

Table 4.10 identifies the responses of the population according to their perceived financial problems being experienced during their operations. It is notable that they have both agreed to be experiencing inadequate finances (in capital allocation) to support

operational

costs and

inadequate

income

generated

to

suffice

operational costs.


35


OPERATIONAL PERFORMANCE OF PURIFIED WATER REFILLING STATIONS IN MARAGONDON, CAVITE

Survey Questionnaire

Dear Respondent: Thank you for allowing me a part of your valued time to answer this survey form. Please indicate your closest perception regarding the following items that I may be able to collate data pertaining to your perception of the current operational performance of your business.


36


Rest assured that your responses will be treated as foundation of this research and solely for that purpose. Thank you very much. Sincerely yours,

Profile of Respondents: Name: (Optional) __________________________________________ Instruction: Please check

the box for the appropriate answer.

1. Type of Business Ownership Single Proprietorship

Partnership

Corporation

2. Length of Business Operation 0-1 year

2- 3 years

3- 4 years

5 years and

above 3. Initial Investment Php 100,000-350,000

Php 350,001- 500,000

Php 500,001-750,000

Php 750,001-up

4. Target Market


37


Households

Schools

Other Business Establishments

5. Average Monthly Income Php 10,000 and below

Php 10,001- 50,000

Php 50,0001-100,000

Php 100,001 and up .

4. What is the operational performance of purified water business in terms of:

Scale

Ratings

Description

5

4.50-5.00

Very Strong

4

3.50-4.49

Strong

3

2.50-3.49

Moderate

2

1.50-2.49

Weak 5

Marketing

1

1.0-1.49

Management

Technical Aspect


4

3

2

1

Very Weak 5

4

3

2

1

5

4

3

2

1

38


5

Financial Aspect

4

3

2

1

5. What are the problems encountered by the owners of purified water business in terms of:

Scale

5

Ratings

4.50-5.00

Description

Interpretation

Strongly


Agree

statement is true When the item described by the

4

3.50-4.49

Agree

statement is frequently true. When the item described by the

3

2.50-3.49

Neutral

statement is neutral. When the item described by the

2

1.50-2.49

1

1.0-1.49

Disagree

statement is not true all the time.

Strongly


Disagree

statement rarely true. 5

Marketing

4

3

2

1

1. Lack of adequate marketing finances and tools. 2. Lack of innovative marketing ideas. 3.

Lack of mechanisms to materialize

marketing strategies.


39


Management

5

4

3

2

1

5

4

3

2

1

5

4

3

2

1

1. Lack of organizational functionality 2. Lack of manpower and resources 3. Dysfunctional communication channels between levels of organization Technical Aspect

1. Lack of adequate tools, equipment and machineries 2. Lack of technical operational skills of the manpower 3. Inadequate compliance to established standards Financial Aspect

1. Inadequate finances (in capital allocation) to support operational costs 2. Inadequate income generated to suffice operational costs 6. What do you think are the business operation initiatives that will enhance the operational performance of your business? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ _______________________________


40

Operational Performance of Purified Water Refilling Stations in Maragondon

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