Chapter 1

THE PROBLEM AND REVIEW OF RELATED LITERATURE

Introduction
The Petron Micro-Filling or Bulilit Station is an easy-to-build gasoline station. It is a more

financially possible alternative yet equally sustainable business for micro-entrepreneurs. The Bulilit

Station business is a retail operation which sells Petrons premium petroleum products. The objective

of this is to provide a quality service to its customers, every time and everywhere.
Gasoline is a commodity that is used as a source of energy for cars, automobiles and other

equipment. It is a petroleum product and is primarily used on automobiles. It is composed of organic

mixtures and is obtained by subjecting the petroleum to partial distillation process by adding few

chemicals. It is produced in oil refineries. Material separated from crude oil via distillation is called

1|Page
virgin or straight-run gasoline. Some gasoline contains ethanol as an alternative fuel. Gasoline is also

very vital in our economic development because without the aid of it operations in the government,

private and public sector will be unusual and inefficient.

In the growing population and improving technologies in our society today, gasoline is really

necessary since most of the people have their own vehicle. They need gasoline so that their vehicles

will run. Barangay Tabid is a place where most of the people have their own vehicle. However,

gasoline station cannot be found there. This place can be passed by when one goes to its neighboring

barangays like Dimaluna, Tabid, Labinay, Manaka, Diguan, Sinusa, and Litapan. The problem of the

people as observed is that, the gasoline station is far from them. The nearest gasoline station is

located in Baadero highway which is Petron. Going there is time consuming and costly. Because of

this, the researchers would want to investigate whether putting a Petron Bulilit Station in Barangay

Tabid is feasible. A Petron Bulilit Station in Barangay Tabid can address the peoples needs in terms

of refueling their vehicles.

Barangay Tabid is one of the biggest barangays in Ozamiz City with a population of 123,137.

This barangay is located between two cities which are Tangub City and Ozamiz City. It has also

neighboring barangays like barangay Sinusa, Labinay, Diguan, Litapan, Manaka, and Dimaluna.

Because of its location, Tabid is an ideal place to put up Petron Bulilit Station. It is also an ideal place

because from Tabid to Tangub City you need to travel 7 kilometers before you will reach the Petron

Gasoline and from Tabid to Lam-an Ozamiz City you will travel 10 kilometers to reach the nearest

Shell Gasoline Station. Barangay Tabid has higher population than the neighboring barangays and the

number of persons who owned motorcycle and other vehicle is also higher. Because of the demand of

gasoline lots of small vendors in Tabid and on its neighboring barangays are selling gasoline in

bottles with a higher price. If there will be a Petron Bulilit Station in Tabid, those vendors and vehicle

owners will buy directly to his station beacause of the benefits like lowerc cost of the product and its

accessibility. Since it is along the Highway, the vehicle owners form Sinusa, Labinay, Diguan,

2|Page
Litapan and Manaka can pass by the station when they will go to Ozamiz City or the people in the

Dimaluna if they will go to Tangub City. That is why Tabid is the best palce to put a Petron Bulilit

Station.

Review of Related Literature

In the early years of the automotive industry, specialized outlets for gasoline and lubricants

were unknown. Motorists purchased these products from a number of different kinds of retail stores

and service establishments which handled petroleum products as side lines to other business

activities. These included general stores, hardware stores, automobile dealers, farm implement

dealers, grocery stores, drug stores, bicycle repair shops, and even peddling tank wagons which

traveled from house to house (Partridge, 1952 and Shuman, 1940). Gasoline was typically dispensed

from barrels. Customers filled their tanks from cans kept in the car for this purpose. The dispensing

pump with an underground storage tank did not appear until about 1910, and even then most pumps

were operated as curbstone adjuncts to other kinds of stores (James, 1953).

The service station trade is characterized by intense competition. Competition exists between

stations of different oil companies, between different types of stations, and between individual

stations selling the same brand of gasoline. The development of the gasoline service station has been

traced in terms of broad trends in the number, types, and status of this institution in the economy. The

first gasoline filling stations came into existence between 1905 and 1910 with the emergence of

widespread ownership of the automobile. Those early stations were literally only gasoline filling

stations. However, as the automobile became more sophisticated and consumers' needs changed,

gasoline stations added new products and services.

3|Page
 Entry into the trade is easy. Initial capital requirements are small, primarily because many of

the more important assets of the business are supplied by the oil company. Furthermore, there are

always new aspirants for any vacancy that occurs.

Competition among oil companies for each other's good dealers is keen. Many transfers

reflect this kind of rivalry, in which a dealer moves from one oil company to another to take

advantage of better opportunities. In fact, only a small part of all transfers can be attributed to

unprofitable operations. The US Department of Commerce found in a special study of this problem

that only one-fourth of all business transfers in that period (1946) were disposed of by the original

owners in order to prevent or minimize a loss,(Beckman, 2011).

Petron: 80 years of fuelling journeys

Put a tiger in your tank is a famous slogan in 1960. Back then, Petron was known as Esso

Philippines and Esso Extra was one of its well-known gasoline products. But with the consumers

changing demands through the years, Petron knew that a refinery would make them flexible and put

the company at the forefront of fuel technology. Thats when the construction of what would later be

known as the Petron Bataan Refinery (PBR) began. From being a multinational, Petron became a

government-controlled company in 1973, a partner of Saudi Aramco during the onset of deregulation

in 1994, and now a fully privatized, Filipino-owned and operated company under the aegis of San

Miguel Corporation.

Today, Petron is the countrys largest oil refining and marketing company. It has 2,100 service

stations nationwide and supplies nearly 40% of the countrys oil requirements. Petrons locally made

environment-friendly products are testaments of Filipino talent and ingenuity. Even before the Clean

Air Act was passed in 1999, Petrons products were already compliant with its specifications, phasing

out leaded gasoline nationwide well before the governments December 2000 deadline. In 2010, the

company introduced Petron Turbo Diesel and Petron Blaze 100. This year, they rolled out Petron

4|Page
Super Xtra Gasoline, which cleans away and prevents harmful engine deposits, and Petron Blaze 100

Euro 4, the first premium plus gasoline in the country that meets more stringent fuel specifications set

by the European Union.

Aside from selling lubricants and specialty products, Petrons repair and maintenance centers

are outfitted with modern equipment and manned by well-trained technicians. In 2004, the company

introduced the Petron Fleet Card, the first microchip-based fleet card in the country. Four years later,

they launched the prepaid Petron e-Fuel Card, and last year, the Petron Value Card.

In 2009, the company embarked on a massive network expansion program. Since then, Petron

has opened over 1,000 new stations all over the country and pioneered the micro-filling

or bulilit station business, particularly in far-flung areas. In the first half of 2014, Petrons $2-billion

Refinery Expansion Program (RMP-2) will be completed. This project will increase the companys

output of valuable products such as gasoline, diesel, and petrochemicals, helping ensure the long-term

supply security of the country. RMP-2 will also enable Petron to locally produce more

technologically-advanced fuels that meet with the Euro 4 fuel standard.

Now, on its 80th year, Petron marks its first year since establishing Petron Malaysia, its first

international foray. Petron Malaysia was founded in 2012 after Petron successfully acquired three

Exxon Mobil downstream companies. Petron promises to sustain its success by staying dedicated to

and passionate about its vision to be the leading provider of total customer solutions in the energy

sector and its derivative businesses. Consumers can expect the company to keep expanding its reach,

evolving its products and services, and unfalteringly commit to nation building(Bustilla, 2013).

Petron plans 5,000 stations in 3-4 yrs

MANILA, Philippines - Petron Corporation the countrys biggest oil refiner, is aiming to bring

to 5,000 stations the total network of retail stations in the country (Ang, 2013). The company recently

5|Page
built its 1,000th service station under its network expansion program, bringing the total number of

Petron stations in the country to nearly 2,100.The 1,000th Petron service station under the program is

located in Guiuan, Samar.The company said it has been able to build 250 stations each year for four

years.
Petron said the companys network expansion program has been instrumental in increasing its

market presence and in maintaining its leadership position. It is in a period of unprecedented growth

and expansion. The network expansion program ensures that Petrons premium products and services

are more accessible to the countrymen, anytime and anywhere.

During the stockholders meeting, they promoted the micro-filling or Bulilit station concept

an easy-to-build station that can start with a few dispensing pumps but easily expandable as demand

grows. Through the Bulilit station concept, Filipino entrepreneurs have the opportunity to partner

with a company they trust. The retail stations can also generate employment in the rural areas, where

the new stations are located.

Petron service station expansion program is a means to further reach out to their customers.

This is also a manifestation of the company to nation-building, one service station at a time. Data

from the company showed that as of end-2012, Petron had 34.5 percent of the highly competitive

retail market (Gonzales, 2013).

The electric car a green transport revolution in the making?

The electric car finally seems to be on the verge of breaking through, offering significant

environmental benefits, especially in urban areas. Innovative business models are on the way which

should boost consumer acceptance and overcome the remaining barriers, such as high battery costs,

green electricity supply and charging infrastructure.

Several European countries as well as the US, Japan, China and others, have recently

announced bold plans for the introduction of electric vehicles. These include fiscal incentives,

6|Page
funding research on batteries and electric vehicles and plans for the deployment of a charging

infrastructure. Major cities such as London and Paris have announced electric car-sharing systems,

while public administrations and companies using large captive fleets are purchasing electric

vehicles.
At the same time, utilities, car manufacturers, battery producers and academics are joining

forces on initiatives such as the EURELECTRIC Task Force on Electric Vehicles and EpoSS, the

European Technology Platform on Smart Systems Integration. Together with the European

Investment Bank the European Commission has launched the European Green Cars Initiative, with

EUR 5 billion partly dedicated to the research, development and manufacturing of batteries and

electric cars and to demonstration projects.

This flurry of activity seems to indicate that the electric car is heading for a major

breakthrough at last - but is it here to stay this time? History calls for caution. The production of

electric vehicles began as far back as 1838 52 years before combustion engine vehicles. However,

after 1913 the mass commercialisation of the combustion engine led to a rapid decline in electric

vehicles. Attempts to reintroduce electric vehicles in past decades have for the most part been

unsuccessful and they still represent a very small, niche market.

Yet today the future looks brighter. A great deal of progress has been made in battery

technology and electric vehicles are expected to re-enter the market on a large scale within the next

couple of years. Based on a moderate growth scenario, by 2050, electric vehicles could represent

more than 60 % of new sales and constitute up to 25 % of the global car fleet. However, estimates of

the extent of future deployment vary greatly, as there is still some uncertainty in relation to the

development of technology and future consumer behaviour.

Electric cars: the silver environmental bullet?

Electric vehicles have zero tailpipe emissions, but there are, of course, emissions involved in

the production of electricity. One major benefit of electric vehicles is the "displacement" of harmful

7|Page
air pollutants from urban to rural areas, where population exposure is lower. Noise levels are also

lower, particularly in urban driving conditions.

Another major advantage of electric vehicles is their energy efficiency. With a tank-to-wheel

efficiency in the range of 60 to 80 %, they outperform conventional cars four-fold. Generally, electric

vehicles show greatest energy savings at low speeds and in situations involving frequently-changing

driving dynamics, which is another reason why cities are a prime target market.
Thanks to their energy efficiency, and assuming that electricity generation will be even

greener in the future, electric vehicles could contribute to a considerable reduction in greenhouse

gases. Given the ongoing debate on climate change, this could prove to be an important factor.

Indeed, transport is responsible for more than a fifth of the EU's greenhouse gas emissions and it is

the only sector with growing emissions. While the improvement of internal combustion engines still

offers considerable potential for reducing emissions per kilometre driven, reductions in greenhouse

gas emissions over and above 50 % will require new technological solutions, such as the electric

vehicle.
Compared to conventional vehicles, and based on the current average European electricity

supply, electric vehicles have 50 % less emissions. Further benefits can be achieved if the carbon

intensity of power generation continues to decrease with further greener and renewable energy

sources.
There are, however, still some obstacles related to green electricity supply, the as yet

expensive battery technology, the limited driving range and the need for a dense network of electric

charging facilities. To overcome these obstacles, innovative business models are being developed to

help transform automotive transport.

Integrated transport and energy concepts

To be a success, the electric car has to be introduced onto the market as part of an overall

transport and energy concept rather than stand-alone technology. If millions of vehicles are to be

8|Page
connected to electricity grids without a negative impact on the environment, there must be an

integrated approach to power supply and demand (from electric vehicles), to ensure the use of green

electricity sources. Otherwise, the anticipated increase in peak load demand would require new

investments in electricity generation and grid capacity.

Scientists and engineers from the automobile industry and electricity supply companies are

already working on 'smart electricity grids' for the vehicle-to-grid connection interface. This will

enable electric vehicles to become an inherent part of the electricity supply and distribution system.

Electric cars would not only run on green electricity, but could also be used to store and supply

electricity back to the grid when needed. In this way, electric transport would also boost the further

development of green electricity.

Battery leasing and smart electricity grids

Today's battery costs have a price premium of EUR 15,000 to 40,000. As technological progress is

made and economies of scale begin to kick in, this could decrease to under EUR 10,000 in the mid-

term and EUR 5,000 in the longer-term. To compensate for these higher costs, some countries and

cities have announced important incentives, such as tax rebates and subsidies, free parking in urban

areas and exemption from congestion charges and road taxes.

Another promising way of limiting battery costs is the battery leasing formula, whereby the

electricity company owns the batteries and leases them to car owners. The Norwegian THINK City

electric vehicle initiative already offers such a battery-leasing concept. The vehicle manufacturer

retains the ownership of the batteries, which also guarantees the supply of the most advanced battery

technology and replacement in the event of deteriorating performance.

Currently, the driving range of electric vehicles is limited to around 200 kilometers. A dense

charging infrastructure is needed in public spaces to permit frequent recharging during idle hours.

There is also the time element to consider; recharging a battery can take from 3 to 8 hours, assuming

9|Page
a conventional plug-in to the electric grid. Given that vehicles are parked an average of 95 % of the

time, this should not pose a problem if charging points are widely available.
In addition, innovative charging solutions are in the pipeline. High-power, fast charging

stations could reduce the charging time to less than 30 minutes. Smart grid systems for the vehicle-to-

grid connection interface could allow an optimisation of battery charging. This, in turn, could become

attractive to utility companies with regard to the management of the electric grid and the fluctuating

supply and demand of energy.

An important frontrunner in this regard is 'Better Place', a US start-up company that plans to

build a dense network of battery charging and exchange stations for electric vehicles. Together with a

Renault-Nissan alliance, Better Place has been developing prototype electric vehicles on which

battery exchange takes only a few minutes. A leasing scheme will provide both the battery system and

the energy supply. The subscription model, similar to that for mobile phones, would charge drivers of

electric vehicles according to the distance travelled. The first charging networks are due to begin

operating in 2010/11 in Denmark, Israel and Portugal. Similar projects are planned in other countries,

including the US (California and Hawaii), Canada (Ontario) and Australia.

Getting the buy-in from consumers

For the electric car to achieve a large-scale breakthrough, technology and smart transport -

energy systems alone will not suffice. Electric vehicles will only have a positive impact on the

environment if they replace a significant amount of the mileage driven in conventional cars. A

fundamental change in purchasing and mobility behaviour is therefore crucial. This is where lifestyle

choices and mobility planning come in.

In Europe, more than 80 % of car journeys average below 20 km and Europeans drive less than 40

km per day. This means that most of our trips can be perfectly accommodated by a mid-size electric

car. Yet people still tend to buy cars that greatly exceed their daily requirements, preferring to buy

large cars that can also cover the occasional long distance holiday, for example.

10 | P a g e
 To change this consumer behaviour, alternatives must be made available. For instance, electric

vehicles could be used for short distances and daily trips, while a supplementary conventional or

hybrid vehicle (rented or owned) could be used for the occasional longer journey. Recent research

also shows that people are likely to become more open to flexible access to transport as time goes on

and by 2020 they should be less dependent on their own car. Electric car-sharing services could

further foster this development, and are already being piloted in cities such as Paris (Autolib) and

Oslo (Move About).

Finally, electric transport also needs to be tied into an overall mobility concept that provides new

links between different means of transport. A combination of electric car-sharing with mass transit

services (e.g. train) would extend the network coverage of public transport providers far beyond their

traditional nodes.
Policy-makers, researchers, car manufacturers and utilities will have to ensure that smart

technology and new business models are available to ensure that electric mobility can deliver its

potential environmental benefits to the full. Informed and supportive consumers are needed to make

this happen.

http://www.eea.europa.eu/articles/the-electric-car-2014-a-green-transport-revolution-in-

the-making

Oil industry sees no threat from electric car

The biggest oil companies in the world have calculated that few, if any, of today's drivers will

see electric cars outnumber gasoline and diesel models in their lifetimes. While politicians and green

lobby groups insist the future of transport is electric, in the past two months BP and Exxon have

released data which points to electric cars making up only 4-5 percent of all cars globally in 20-30

11 | P a g e
years. Meanwhile some governments are targeting as much as a 60 percent market share for electric

vehicles over a similar period. The oil company forecasts may appear self-serving, but if they are

widely accepted could provoke a policy shift that offers greater incentives for electric cars to end our

addiction to oil. And unlike more optimistic predictions from consultants like McKinsey, these

forecast are backed by cash. They guide tens of billions of dollars in long-term investment in oil

production and refining and it is oil that stands to lose if they get it wrong. They don't, of course, take

into account a major breakthrough in battery technology that could give electric cars a cost and

performance edge over the internal combustion engine.

In its Energy Outlook for 2030, released earlier this month, BP predicted that electric vehicles

and plug-in hybrids will make up only 4 percent of the global fleet of 1.6 billion commercial and

passenger vehicles in 2030. "Oil will remain the dominant transport fuel and we expect 87 percent of

transport fuel in 2030 will still be petroleum based," BP Chief Executive Bob Dudley said as he

unveiled the BP statistics on January 18. The balance is seen coming from biofuels, natural gas and

electricity. Plug-in hybrids can be powered from the mains and only rely on their small gasoline

engines when the battery dies. Standard hybrids are principally driven by an internal combustion

engine whose efficiency is boosted by the recycling of energy generated from braking.

Exxon Mobil, the biggest oil and gas companies in the world, says the continued high cost of

electric vehicles compared to petroleum cars, means take-up won't even increase much during the

2030s. In its 2040 Energy Outlook, released in December, the Texas-based company said electric

vehicles, plug-in hybrids and vehicles that run on natural gas would make up only 5 percent of the

fleet by 2040. Peter Voser, Chief Executive of Royal Dutch Shell, the industry number two, sees a

rosier future for electric vehicles. He predicts they will account for up to 40 percent of the worldwide

car fleet, although only by 2050.

12 | P a g e
A $50 BILLION-A-YEAR OPINION

The statistics published by Exxon and BP, Europe's second-largest oil company by market

value, are perhaps the most detailed long-term forecasts on electric vehicle take-up. These Energy

Outlooks guide how the oil groups allocate their annual investment budgets - among the biggest in

the world, at over $50 billion combined for BP and Exxon. The expected continued dominance of

petroleum partly explains the scaling back in BP and Shell's solar, hydrogen and wind power

ambitions in recent years, and Exxon's continued reluctance to get involved in renewable energy.

Insofar as the companies are active in green energy, it is mainly in the production and

blending of biofuels. This is driven by U.S. and European governments' insistence that a percentage

of motor fuels sold must come from plant-based sources. If the oil companies are wrong about

electric cars they will find their investments in big and expensive new oil production projects, which

increasingly need crude prices around $80 per barrel to be profitable, not paying off. The companies

do see an easing in the addiction to oil, though. Despite increased car ownership in China and India,

Exxon predicts "global demand for fuel for personal vehicles will soon peak" due to an increase in

average fuel efficiency.

BP expects the efficiency of combustion engines to double by 2030, with a third of vehicles

on the road being hybrids. This trend will be driven by more stringent fuel economy standards in the

U.S., CO2 reduction legislation in Europe and an end to oil subsidies in developing countries.

Increased airline and commercial vehicle traffic will counterbalance some of the efficiency gains

from cars but BP predicts that, helped by increased use of biofuels, demand for oil for transport

overall will plateau in the mid-2020s.

GREENS FUME, POLITICIANS SEE QUICKER ADOPTION

13 | P a g e
 Green groups reacted with suspicion to the oil industry forecasts. "Exxon would say that,

wouldn't they. A big take-up of electric cars is not something they would like to see," said Jos Dings,

director of Brussels-based sustainable transport campaign group, Transport and Environment. "The

future for petrol and diesel doesn't look good," he countered. Nonetheless, environmentalists like

Dings fear political complacency about improving vehicle efficiency could prompt governments to

ease targets to cut vehicle emissions, which could in turn delay the electrification of transport.

Big Oil's pessimistic outlook for electric cars is at odds with many governments' plans.

Electric vehicles barely register on the statistics of car sales at the moment. Nonetheless, China is

targeting 5 million electric vehicles on its roads by 2020, according to media reports. This would

represent around 3 percent of its predicted fleet.

The Australian government's main energy adviser, the Australian Energy Market Commission,

has predicted electric vehicles will make up 20 per cent of new car sales inAustralia by 2020 and 45

per cent by 2030. The UK's Committee on Climate, which advises the government, has predicted

electric vehicles will reach around 60 percent of new cars and vans by 2030. And New Zealand hopes

to get to 60 percent by 2040. The U.S. has more muted ambitions. President Barack Obama said he

wants to put 1 million electric vehicles on U.S. roads by 2015, a figure that would represent less than

half of one percent of the total fleet.

Many U.S. experts and officials predict a tipping point in the uptake in electric vehicles in the

latter part of this decade, as technology improved, economies of scale kick in and consumer fears

about being stranded when their batteries run flat, or "range anxiety," eases. However, data compiled

by the U.S. Energy Information Administration may explain the lack of an official U.S. target. Last

week, the agency released an 'abridged version' of its Annual Energy Outlook 2012, due to be

released in full in the Spring.

Tables used in formulating the outlook show electric vehicles and plug in hybrids are expected

to account for only 1.3 percent of the U.S. fleet in 2030. Furthermore, the agency predicts that neither

14 | P a g e
consumers, nor carmakers, will get over 'range anxiety'. By 2035, the agency sees few, if any, electric

vehicles on U.S. roads that can travel for 200 miles without recharging.

CARMAKER ENTHUSIASM COOLS

Many of the headlines out of autoshows in the past couple of years have been captured by the

launch of electric cars such as Nissan's Leaf, the Tesla sports car, plug-ins like General Motors'

Chevrolet Volt, and the latest incarnation of the Toyota Prius. Other manufacturers including BMW,

Rolls-Royce and Porsche have presented electric-powered prototypes. On the basis of this, one could

be forgiven for thinking the auto industry is betting big on electric power. Yet few auto executives

share the optimism of Renault and Nissan chief executive Carlos Ghosn who has repeatedly said he

sees electric vehicles making up 10 percent of all sales in 2020. A survey of 200 auto industry

executives conducted by KPMG released earlier this month gave an average forecast for electric

vehicles to account for 6-10 percent of global auto sales in 2025 - more bullish than Exxon and BP

but hardly a revolution.

"Certainly a year ago or so, you could have gotten the impression from reading the press that

everyone is driving electric cars in two years time," Daimler CEO Dieter Zetsche said at a roundtable

at the sidelines of the Detroit auto show last month. Zetsche said he did not see "an explosion of

demand for this product." Echoing comments from the oil companies, Gerd Kleinert, CEO of KSPG,

the automotive parts business belonging to German group Rheinmetall, says take-up of electric cars

will be curtailed until batteries can store energy using as little weight as gasoline does, and can be

recharged as quickly as refilling a fuel tank.

"When that world exists, then we will all be driving electric cars starting tomorrow. But I

personally don't see that happening, not even a hundred years from now."

http://www.reuters.com/article/2012/02/01/us-electric-car-big-oil-

idUSTRE81011820120201
BY TOM BERGIN

15 | P a g e
 A. Rationale of the Study

Petron Bulilit Station is chosen to be studied because the researchers found out that this kind

of business venture is not yet established in Barangay Tabid, Ozamiz City, Misamis Occidental. The

researchers also found out that most of the people in Barangay Tabid and the neighboring barangays

do have their own vehicles. Thus, this business will provide them petroleum products that are

accessible and convenient on their part.

B. Objectives of the Study

I. General Objective

This study aims to determine whether or not Petron Bulilit Station in Barangay

Tabid, Ozamiz City is feasible.

II. Specific Objectives
A. Market Study
1. The appropriate target market and the projected demand in the next five years.
2. The competitors and their respective production/ supply capacity or volume.
3. The competitors financial and operational capacity to sustain its business in the

next five years.

4. The extent of the market saturation. (Demand and supply gap analysis.)
5. The marketing strategies (product, place, promotion, price) that is appropriate

for the market.

6. The cost of marketing the product
B. Human Resource and Legal Management Study
1. The organizational structure that is appropriate to the business.
2. The manpower requirement for the business including their functions and skills

requirements.
3. The availability of this manpower in the locality.
4. The average wages in the industry vis--vis the minimum wage.

16 | P a g e
 C. Socio-Economic Study
5. The demographics (age, gender, household, civil status, religion and some

other relevant information) of the people that are relevant to the business in the

location stated.
6. The sources of income and income class of the people in the said location.
D. Environmental Study
7. The existence of municipal ordinances related to the environmental policy (like

no to plastic and styro policy, solid waste management policy and the likes.)
E. Technical study
8. The tools, equipment, machineries and supplies requirement.
9. The maximum capacity (production, storage, land if into farming ) (if

applicable)
10. The production yield, spoilage, and breakdown.
11. The time and motion mixed of ingredients.
12. The soil analysis.

F. Financial study
13. The project cost.
14. The financing scheme.
15. The profitability, solvency and liquidity.
16. The payback period.
17. The return on investment.

C. Significance of the study

This study would be beneficial to the following:

a. Barangay Tabid
This study will benefit the barangay because it can generate income from the

business. The business will pay taxes to the barangay that could be used for its

development.
b. Supplier
Supplier can also be benefited since they can generate income out from the

business which will distribute its products.

c. Owners
This study will benefit the owner because it will give idea and information in

handling the business and also it will help to generate profit.

17 | P a g e
 d. Customers
This study will benefit the customers because the proposed business provides

petroleum products which are readily available and accessible to them. Because of the

accessibility of the Petron Bulilit Station, the customers can save money in buying

these products.
Scope and Limitation
This study will cover the establishment of Petron Bulilit Station located at Barangay Tabid,

Ozamiz City. The study was conducted to the possible target markets of Manaka, Litapan, Dimaluna,

Diguan, Sinusa, Labinay and Tabid who owns ehicles.

Chapter
18 | P a g e
 II
METHOD
Research Method

The researchers will use the descriptive method to be able to describe, analyze, and interpret

the data based on the responses of our respondents on the questions that are being asked by the

researchers. By the use of this information, the researchers will be able to gather idea which will be

used to analyze the existing condition of the market and be able to come up with sound decisions for

the proposed business.

The researchers will make use of the information gathered from the responses of our

respondents with our questions to properly evaluate the perception of prospect customers regarding

the feasibility of Petron Bulilit Station in Brgy. Tabid, Ozamiz City. The researchers will also use the

observation method in determining the demand gap.

Research Instruments
The tools in gathering the data are survey questionnaire and interview. The questioner was

made by the researchers and was submitted to the panel for checking.

Method of Data Collection

Researchers conducted initial interview to some drivers of each Barangay to determine the

number of residents who have vehicles in each place. The data gathered was used in determining the

sample size who will answer the questionnaire. The researchers distributed it to the identified

respondents. The researchers formally went to the location where the drivers usually gather and to the

19 | P a g e
residence of the respondents (owners of private vehicles). To conduct the survey the gathered data

will then be tabulated, analyzed, and interpreted.

Respondents
Here are the results of the initial interview conducted by the researchers.

Residents with Vehicles

Place No. of Residents with Sample Size
Vehicles
Diguan 131 41
Dimaluna 181 56
Labinay 80 25
Litapan 139 43
Manaka 65 20
Sinusa 71 22
Tabid 219 68
Total 886 275

In determining the number of respondents of the study, the researchers will use the Slovins

Formula which is n=N/(1+Ne). The total number of respondents of this study is 305. The driver and

the owners of motorcycle and other vehicle form Barangay Tabid and other neighboring barangays.

Data Analysis: Frequency and Percentage distribution were used in analyzing the results of the

survey.

CHAPTER
20 | P a g e
 III
A. Market Study
The researchers will distribute survey questionnaire to the respondents. These respondents are

the owners of motorcycles, motor cabs and automobiles who are residing at Diguan, Dimaluna,

Labinay, Litapan, Manaka, Sinusa, Tabid. The aim of the researchers is to identify the demand of

gasoline in these places. This survey will also help the researchers identify the feasibility of the

Petron Bulilit station in Tabid.

I. Market Description

Petron Bulilit Station will address the need of gasoline in Tabid, Ozamiz City and its

neighboring barangays. This gasoline station will provide quality product and services to

the owners of motorcycle and automobile. Refueling their vehicle will be more accessible

and convenient on the customers.

II. Results of the survey: The following tables showed the results of the survey about the

feasibility or marketability of the proposed business.

Table 1
Respondents Preferred Gasoline Station

Gasoline Station Frequency Percentage

21 | P a g e
Petron 141 51.27%

Shell 78 28.36%

Sea Oil 56 20.37%

Total 275 100%

Table 1 shows that out of 275 respondents that is comprises by the residents of Manaka, Litapan,

Diguan, Dimaluna, Sinunsa, and Tabid 141or (51.27%) of them prefer Petron, 78 or (28.36%) choose

Shell and 56 or 20.36% choose Sea Oil. The data further show that in refueling the vehicles, more

than half of the respondents preferred Petron Station.

Table 2
Type of Fuel Respondents used

Type of Gasoline Frequency Percentage

Diesel 42 29.79%

XCS 99 70.21%

Total 141 100%

Table 2 shows that out of 141 respondents that is comprises by the residents of Manaka, Litapan,

Diguan, Dimaluna, Sinunsa, and Tabid choose Petron, 42 or 29.78% of them used Diesel and 99 or

70.21% used XCS. Majority of the respondents are motorcycle owners who need XCS as fuel of their

vehicles.

Table 3
Daily Gasoline Consumption of the Respondents Regardless of what type of Vehicles
(Denomination/Average Price*Frequency)=Value in Liter
The daily gasoline consumption of the respondents is determined by dividing the amount spent daily

by the average price of the gasoline and the multiply to the number of respondents who refueled with

needs amount.
Diesel 49.65
XCS - 61.40

22 | P a g e
Amount Diesel Per Liter XCS Per Liter

35 0 0 7 3.99

40 0 0 28 18.24

50 0 0 11 8.96

60 0 0 15 14.66

100 19 38.27 16 26.06

125 0 0 5 10.18

150 12 36.25 3 7.33

185 0 0 4 12.05

200 11 44.31 10 32.57

Total 42 118.83 99 134.04

The data in table 3 shows that the daily consumption of the respondents for the diesel is 118.83 liters

while for XCS is 134.04 liters. This finding supports with the data is Table 4 that are using XCS as

their vehicle fuel.

Table 4
Demand for XCS and Diesel in a Week

Amount Diesel Per Liter Weekly XCS Per Liter Weekly

35 0 0 7 3.99 27.95

40 0 0 28 18.24 127.68

50 0 0 11 8.96 62.72

60 0 0 15 14.66 102.62

100 19 38.27 267.89 16 26.06 182.42

125 0 0 5 10.18 71.26

150 12 36.25 253.75 3 7.33 51.31

185 0 0 4 12.05 84.35

200 11 44.31 310.17 10 32.57 227.99

23 | P a g e
Total 42 118.83 831.81 99 134.04 938.30

Table 4 shows that the demand for Diesel and XCS in a week is 831.81 and 938.30 respectively.

Table 5
Demand for Diesel and XCS per Liter in a Month

Amount Diesel Per Weekly Monthly XCS Per Weekly Monthly

Liter Liter

35 0 0 7 3.99 27.95 111.08

40 0 0 28 18.24 127.68 510.72

50 0 0 11 8.96 62.72 250.88

60 0 0 15 14.66 102.62 410.48

100 19 38.27 267.89 1,071.60 16 26.06 182.42 729.68

125 0 0 5 10.18 71.26 285.04

150 12 36.25 253.75 1,015 3 7.33 51.31 205.24

185 0 0 4 12.05 84.35 337.40

200 11 44.31 310.17 1,240.68 10 32.57 227.99 911.96

Total 42 118.83 831.81 3,327.28 99 134.04 938.30 3,752.48

Table 5 shows that the demand for Diesel in a month would be 3, 327.28 and the Demand for XCS in

a month would be 3, 752.48.

Table 6
Overall Monthly Demand for Diesel and XCS in Liters

Type of Gasoline Demand in Liters

Diesel 3, 327.28

XCS 3, 752.48

Total 7, 079.76 Liters

24 | P a g e
III. Competitors Profile
The business identified direct competitors. The researchers asked the competitors the current

selling prices for their petroleum products like XCS and Diesel.
Table 7
Competitors Profile

Competitors Owner Location Selling Price as of

July 27, 2014

Shell Mr. Robert Tan Lam-an, Ozamiz City Diesel 48.95

XCS 62.05

Sea Oil Mrs. Lorna S. Yap Lam-an, Ozamiz City Diesel 49.50
XCS 61.10

Petron Eliezer Y. Lim Lam-an Ozamiz City Diesel 49.85

XCS 61.25

IV. Price Analysis

Table 8 shows the following prices of petroleum products that are to be offered to the

customers by Petron Bulilit Station.

Table 8
Prices that will be offered to the customers

Petroleum Products Average Price

Diesel 49.65

XCS 61.40

V. Marketing Strategies
A. Advertisement and Promotion
To promote the product, the researcher will use signage to inform the customer. This

signage also shows the distance or location of Petron Bulilit Station.

Also, we will use the power of media like local radio advertisement to inform the

public that there is an existing gasoline station in Barangay Tabid, Ozamiz City. By having

25 | P a g e
 this kind of advertisement the public will be informed that Petron Bulilit Station will provide

their quality products at their convenience.

B. Brand Name and Brand Mark
PETRON Bulilit Station is the brand name of the business.

C. Channel and Physical Distribution

Figure 1 Channel Distribution

Jimenez PETRON
depot (Palilan
Jimenez Misamis
Occidental

Petron Bulilit Station in

Figure 2 Physical Distribution Brgy.Tabid, Ozamiz City
CUSTOMERS

Jimenez PETRON
depot (Palilan
Jimenez Misamis
Occidental

PETRON BULILIT STATION

IN BARANGAY TABID,

OZAMIZ CITY

CUSTOMERS
26 | P a g e
D. HUMAN RESOURCE STUDY
Petron Gasoline guide by the following vision-mission to ensure services in its business.

I. VISION

To be the leading provider of total customer solutions in the energy sector and its

derivative business.

II. MISSION

We will achieve our vision by:

Developing strategic partnerships in pursuit of growth and opportunity;

Being an integral part of our customers lives, delivering consistent customer

experience through innovative products and services;

Caring for community and the environment;
Fostering an entrepreneurial culture that encourages teamwork, innovation, and

excellence;
Conducting ourselves with professionalism, integrity, and fairness; and
Promoting the best interest of all our stakeholders.

III. MANAGEMENT ASPECT

a. Form of Business Organization

KWT Petron Bulilit Station will have a sole proprietorship. Dr. Wenny Caseros is the

proponent of the study. She is a resident of Pulot , Ozamiz City, married and has 3

siblings. Dr. Wenny Caseros has enough capital to sustain and finance the proposed

business.

27 | P a g e
 The overall head of the business and the manager is the owner herself since it is a sole

proprietorship form of business.

b. Proponents Profile

Name: Dr. Wenny Caseros

Address: Pulot, Ozamiz City,Mis. Occidental
Citizenship: Filipino
Age: 44
Gender: Female
Status: Married
Source of income: Teaching, Business
Contact #: 09177181339

c. ORGANIZATIONAL CHART

The establishment will be operated by the owner. It will employ 4 employees, namely

the Manager/Owner, Cashier, Gasoline boy and Security Guard. The owner will be at the same

time the manager of the gasoline station. Since the work in a gasoline station is minimal and

routinely thus it requires small set of employees.

Figure 3.

MANAGER/OWNER

CASHIER

IV. DUTIES AND RESPONSIBILITES

Personal Responsibilities
GASOLINE BOY and Qualifications SECURITY GUARD
The purposed business can provide work, opportunities to the residents of Brgy. Tabid,

Ozamiz, City. The employee who will be hired for the work must poses the necessary qualifications

such as appropriate skills and desirable which attitudes.

Manager Qualifications:

Oversees and monitors the transactions of the business.

Supervises all employees.

28 | P a g e
 Must possess good leadership and management skills.

Manager Responsibilities:

Oversees and monitors the transactions of the business.

Directs and supervises all employees

Cashier Qualifications:

Must be knowledgeable enough about the operation of the business.

Must know the basic mathematics computation.

Cashier Responsibilities:

Responsible for custody of any receipts or disbursement arising from the operation of the

business.
Willing to work long hours and be trained by Petron Corporation.
Handles purchases in a store.

Security Qualifications:

Hired from trusted Security Agency and has a good performance record.

Security Responsibilities:

Maintains the order in the vicinity of the gasoline station and ensures safety assets from theft.

Gasoline Boy Qualifications:

Preferably residing in Tabid at least High School graduate and has a work experience in the

gasoline service.

Gasoline Boy Responsibilities:

Entertain the customers.

Responsible for fuel refilling of the vehicles.

29 | P a g e
 Checks the available stocks

V. SALARIES AND MANPOWER

Table 9
Monthly Salaries Every of the Employee Month

Daily Salaries
Position No. of Personnel /Wages Total/Month

Cashier 1 301.00 9,030.00

Security Guard 1 270.00 8,100.00

Gasoline Boy 2 270.00 16,200.00

VI. SSS AND PHILHEALTH

Table 10
SSS and PHILHEALTH contribution of the Employee every Month

Phil health per

Position No. of Personnel SSS per Month
Month

Cashier 1 1060.00 175.00

Security Guard 1 530.00 87.50

Gasoline Boy 2 1060.00 175.00

VII. BUSINESS POLICIES

30 | P a g e
 To ensured success in the business. All employees must

1. Wear their uniform and ID during working hours.

2. Observe official hours of duty.
3. Report to work daily. Absences are subject to salary deduction.
4. Model punctuality by reporting to duty on time.
5. Uphold good relationship with co-workers.

A. SOCIO-ECONOMIC RESPONSIBILITY
The people that are relevant to the business will include the employees, supplier government

and customers. Since, our business is located in the rural area as much as possible the employees that

will be hired are residents of Tabid,Ozamiz City. The employee will consist of one cashier and

security guard and two gasoline boys.

The residents of the Tabid, Ozamiz City are mostly composed of workers/employees who are

employed in the different business establishments where mostly in the City of Ozamiz and farmers

who cultivated their own land and some work for others.

Table 11

PROJECT TIME TABLE/GANNT CHART

June July August September October November

Activities
Week Week Week Week Week Week

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

General

project

planning

Procurement

31 | P a g e
of funds

Completion of

government

permits and

licenses

Preparation of

equipment and

materials

Start of the

business

operation

B. ENVIRONMENTAL ASPECTS
Earning profit and providing service is the main purpose in establishing the business; however

consideration of the municipality welfares and its environment is also our responsibility. We make

sure that we will follow the policies and procedures of the business operation. Petron Bulilit Station

that will be part up in Brgy. Tabid, Ozamiz City well comply all the environment requirements such

as permits license.

C. TECHNICAL STUDY

I. Technical Description of the Product

Establishing a Petron Bulilit Station in the Barangay Tabid would be of great help for

the residents living in the said area, by providing good quality petroleum products of

Petron like XCS and Diesel.

II. Time and Motion

32 | P a g e
 The table below shows the time schedule during the operation of the business.
Table 12

Service process Time

Log-in and preparation for the operation. 5:15 a. m.

Start of the operation. 5:30 a. m.

Closing of the station and log-out. 6:00 p. m.

III. Duty Schedule

Table 13

Position Duty Schedule

Manager/Owner 7:00 a. m. to 6:00 p.m.

Cashier 5:30 a.m. to 6:00 p.m.

Gasoline Boy 5:30 a.m. to 6:00 p.m.

Security Guard 5:30 a.m. to 6:00 p.m.

IV. Land and Building

The location of the proposed business will be at Brgy. Tabid, Ozamiz City. The land

area is about 250 square meters where the estimated value is three hundred seventy-five

thousand pesos. All the construction expenses will be shouldered by the proponent who

includes excavation that costs four-hundred sixty nine thousand six hundred thirty-nine

pesos and sixty four centavo (469,639.24) and the firewall that costs one hundred seventy-

three thousand one hundred ninety pesos and twenty centavo (173,190.20) for safety

purposes. Also the building would costs three hundred sixty-eight thousand six hundred

33 | P a g e
 eight pesos and seventy centavo and the expenses for major equipment will be shouldered

by the Petron Corporation.

Table 14

Cost of Material of Excavation

PRICE
Work Item Types Materials PIECES(bags,L,) (PESO) QUANTITY SUBTOTAL

FOUNDATION COLUMN CEMENT 150 235 /BAG 35,250.00

SAND 1.2 460 /cu.m. 552.00

GRAVEL 1.9 580 /cu.m. 1,102.00

SLAB CEMENT 150 235 /BAG 35,250.00

SAND 17.94 460 /cu.m. 8,252.40

GRAVEL 20 580 /cu.m. 11,600.00

TIE BEAM CEMENT 4 235 /bag 940.00

SAND 2.12 460 /cu.m. 975.20

10 mm
ANGLE
REBARS BARS 60 165 /6m 9,900.00

12 mm
ANGLE
BARS 21 180 /m 3,780.00

Preliminary
Expense 50,000.00

Cost
Construction 150,000.00

CONCRETE
Walling FIN CEMENT 57 235 /BAG 13,395.00

34 | P a g e
 SAND 10 460 /cu.m. 4,600.00

GRAVEL 17 580 /cu.m. 9,860.00

TOTAL 335,456.60

LABOR COST 134,182.64

OVER ALL
TOTAL 469,639.24

Table 15

Cost of Materials of Building Facilities

PIECES PRICE
Work Item Types Materials (bags,L,) (PESO) QUANTITY SUBTOTAL

10mm ANGLE
ROOFING TRUSS BARS 25 168 /6m 4,200.00

12mm ANGLE
BARS 15 205 /6m 3,075.00

CORRUCATED6.
ROOF 1 SHEET 50 130 6,500.00

OTHERS E.G. BOLTS 25 8 200.00

WALLING CONCRETE FIN CEMENT 75 580 /bag 43,500.00

SAND 13 215 /cu.m. 2,795.00

GRAVEL 17.4 516 /cu.m. 8,978.40

ELECTRICAL LIGHTS PINLIGHTS 6 516 /piece 3,096.00

OUTLETS 2 150 /piece 300.00

SWITCHES 3 250 /piece 750.00

WIRES 75 70 /m 5,250.00

PLUMBING PIPES 12 59 /m 708.00

35 | P a g e
 LAVATORY 1 1800 /piece 1,800.00

WATER
CLOSET 1 1075 /piece 1,075.00

FIXTURES CABINETS 1 1500 /piece 1,500.00

FLOORING FLOOR TILE 200 68 /sq.m. 13,600.00

FINISHER T&B 1.82 68 /piece 123.76

WATER PROOF
PAINT PAINT 15 149 /L 2,235.00

FURNITURES DOORS 2 2150 /piece 4,300.00

WINDOW 2 1290 /piece 2,580.00

COLUMN
FOUNDATION FOOTING CEMENT 100 235 /bag 23,500.00

SAND 1.76 460 /cu.m. 809.60

GRAVEL 2.25 580 /cu.m. 1,305.00

SLAB CEMENT 250 235 /bag 58,750.00

SAND 41.94 460 /cu.m. 19,292.40

GRAVEL 50 580 /cu.m. 29,000.00

BEAM CEMENT 10 235 /bag 2,350.00

SAND 2.12 460 /cu.m. 975.20

10mm ANGLE
REBARS BARS 50 180 /6m 9,000.00

12mm ANGLE
BARS 23 580 /6m 13,340.00

TOTAL 262,653.36

LABOR
COST 105,955.34

OVERALL
TOTAL COST 368,608.70

36 | P a g e
 Table 16

Cost of Materials of Firewall

PRICE SUBTOT
Work Item Types Materials PIECES(bags,L,) (PESO) QUANTITY AL

COLUMN
FOUNDATION FOOTING

CEMENT 300 235 /BAG 70,500.00

SAND 2.76 460 /cu.m. 1,269.60

GRAVEL 5.52 580 /cu.m. 3,201.60

CONCRETE
WALLING FIN CEMENT 150 235 /BAG 35,250.00

SAND 26 46 /cu.m. 1,196.00

GRAVEL 34.8 580 /cu.m. 20,184.00

10mm
ANGLE
REBARS BARS 194 165 /6m 32,010.00

12mm
ANGLE
BARS 45 180 /6m 8,100.00

GRAVEL 2.55 580 /cu.m. 1,479.00

TOTAL 173,190.20

V. Supplier and Costing

a. Supplier of the petroleum products
Jimenez Petron Depot
b. Alternative Supplier of Petroleum products
Iligan Petron Depot

c. Delivery Schedule

37 | P a g e
 Monday
Wednesday
Saturday

It is either in those stated days depending on the owner of the gasoline station, but in all of

those days, the exact time of delivery is either 6oclock in the morning or 5oclock in the

afternoon.

d. Quantity on Delivery

7,500 liters minimum quantity to be delivered. Four thousand (4,000)

liters for XCS and three-thousand five hundred (3,500) liters for

Diesel.

e. Capacity of the Tank

The tank of the proposed business is much smaller than those in usual

gasoline stations. It can only store up to four thousand to five-hundred (4,000

5,000) liters of gasoline each tank. And the gasoline station has two (2) tanks

for only two different types of gasoline which is the Diesel and XCS gasoline.

The number of the liters to be delivered in the gasoline station will be seven-

thousand five hundred liters on a monthly basis. The minimum amount of

gasoline in liters to be delivered in a particular gasoline station would be

seven-thousand five hundred liters for Diesel and XCS per delivery.

VI. PROJECT IMPLEMENTATION

Applicants who pass the screening stage receive confirmation of site

approval, will be required to sign a Lease to Company (TLC) for the least 10

years and deposit a cash bond of Php 200,000. Petron will provide dealer

38 | P a g e
 applicant with the dealer shall drawing embodying the design and

specifications of Bulilit Station while the dealer shall secure all the necessary

permits required by both the National and Local government Units (i.e.

Location, Building, ECC, Occupancy, Business, and other necessary permits.)

Dealer investment consist of capital expenditure for the construction

cost of the Bulilit Station, including site preparation, pre-construction phase of

the project, as well as, working and operating capital requirements in business.

On the other hand, Petron Corporation will provide the equipment and shoulder

the cost of installation thereof.

a. Office Supplies

Table 14

Item Quantity Usage Supplier Unit Cost Total Cost

Bond paper 2 reams For printing Crown Paper 175.00 350.00

purposes

Official 5 stubs Serve us proof Crown Paper 10.00 50.00

receipt of purchase

Staple 2 pcs. Keeps papers Unitop 65.00 130.00

intact

Calculator 1 pc. Use to Gloria Bazaar 499.75 499.75

calculate

numbers

39 | P a g e
 Ballpen 10 pcs. Use for Crown Paper 8.00 80.00

writing

transactions

Columnar 3 pcs. For booking Crown Paper 30.00 90.00

notebook and recording

transactions

Scissors 3 pcs. For cutting Crown Paper 20.00 40.00

purposes

Daily time 5 packs. Employees Crown Paper 8.75 43.75

record DTR

Staple wire 2 boxes. Stapler refill Unitop 45.00 90.00

b. Office Equipment

Table 15

Item Quantity Usage Supplier Unit Cost Total Cost

Computer set 1 set For storing EMCOR 15,000.00 15,000.00

the files of the

station

Ceiling fan 1 unit To maintain Gloria Bazaar 2,300.00 2,300.00

the ventilation

of the office

40 | P a g e
 Smoke 3 units To detect Fire guard 850.85 2,552.55

detector unexpected mktg. and

fire
Gen. mdse

Epson printer 1 set To print Octagon 12,000.00 12,000.00

documents

Ink refill for 5 pcs. To refill the Octagon 325.00 1,625.00

printer printer

Fire 4 units To put out Fire guard 1,550.00 6,200.00

extinguisher unexpected mktg. and

fire
Gen. mdse

c. Furniture and Fixtures

Table 16

Item Quantity Usage Supplier Unit Cost Total Cost

Office table 1 unit For the Gaisano 1,799.75 1,799.75

manager Capital

Office chairs 1 unit For the Gaisano 799.00 799.00

manager Capital

Monoblock 3 units For Gaisano 450.00 1,350.00

Plastic chairs employees Capital

and waiting

customers

Steel cabinet 1 unit For keeping FJK Trading 7,200.00 7,200.00

41 | P a g e
 files

d. Tools

Table 17

Item Quantity Usage Supplier Unit Cost Total Cost

Fluorescent 10 units For lighting Citi Hardware 248.50 2,485.00

purposes

Trashcan 3 pcs. For Unitop 90.00 270.00

segregation of

waste

Broom 2 pcs. For cleaning Gaisano 50.00 100.00

Capital

Dust pan 1 pc. For easy Gaisano 45.00 45.00

cleaning Capital

Wall Clock 1 set For time Gaisano 150.00 150.00

assessment Capital

Feather 2 pcs. For cleaning Gaisano 35.00 70.00

Duster dust Capital

e. Equipment
Table 18

Mitsuba 1 unit For in case of Cebu Phil. 7,500.00 7,500.00

Generator power

42 | P a g e
 interruption Generators

Oil metering 1 unit Uses to Abbella 1,700.00 1,700.00

and measure the machine shop

calibration calibration of

can the dispenser

pump

VII. FRANCHISE REQUIREMENTS AND AGREEMENTS

These are the selection criteria in which the applicant must have to possess. Following the

performance criteria in order to assess the fitness with the business.

Musts:

1. Must meet established capitalization for a given dealership (this will range between P= 1

million to P= 9 million depending on the type of station available.)

2. Must be able to dedicate most of his time, if not all, in running the station.
3. Must be dynamic and have the aggressiveness and desire not just to operate a service station

business but be the number one in his trading area.

4. Must be perceptive to new idea and suggestions, pleasing in personality, and have good moral

character that will assure the company loyalty.

5. Must be willing to undergo a four-week Dealer Management course
6. Must have no past record of criminal case.
7. Must not be operating any existing Petron station or that of any oil company.

Wants:

1. Desirable if the spouse and/or any other member of the family can help in the business.
2. Desirable if applicants capitalization is backed-up by real estate properties for use as future

collateral in expanding the business.

3. Desirable if applicant has previous record of business or employment success.
4. Desirable if applicant has no known vices.
5. Desirable if services station can become full-time business.

43 | P a g e
 6. Desirable if applicant is a member of any civic group in the community, i, e. Rotary, Lions,

Kiwanis, Jaycees, etc.

7. Desirable if applicant is a resident of community where the station applied for is located
8. Desirable if dealership is single proprietorship.
9. Desirable if applicant is not more than 45 yrs. of age.

Performance Criteria

Quantitative:

Sales volume growth

Market share
Financial- sales revenue, profits and return on investment

Qualitative:

Quality of station and personnel appearance/presentation

Merchandising
Quality- customer service

Steady growth of new customers

Retention of old/regular customers
No customers complaints
Ability to plan

Business strategy
New programs/promotions
Workforce:

Sufficient manpower at all times

Alert and high inspired front liners and service personnel
Low turnover/absenteeism
No personnel injuries/accidents

44 | P a g e
BUILDING

AND

LAYOUT

45 | P a g e
 FRONT ELEVATION

REAR ELEVATION
SIGN BOARD

RIGHT SIDE ELEVATION

LEFT SIDE ELEVATION

46 | P a g e
12.5MTRS

FLOOR PLAN

CHAPTER
IV

47 | P a g e
 FINANCIAL

HIGHLIGHT

S
Project Cost Php 2,203,073.12

48 | P a g e
Payback Period 2 year and 4. 5 months
Return on Investment 49.33%

Yearly Sales in Peso

2014 2015 2016 2017 2018

Sales 4,746,711.24 5,233,249.14 5,769,657.18 6,361,047.04 7,013,054.36

Net 779, 540.62 929, 211.45 1, 079, 962.62 1, 246, 852.84 1, 430, 779.34

Income
Assets 2, 988, 651.24 3, 917, 980.69 4, 998, 066.03 6, 245, 046.50 7, 675, 958.57

Liabilitie 6, 037.50 6, 155.50 6, 278.22 6, 405.85 6, 538.58

s
Equity 2, 988, 651.24 3, 917, 980.69 4, 998, 066.03 6, 245, 046.50 7, 675, 958.57

Cash 918, 273.01 1, 954, 583.71 3, 141, 522.87 4, 495, 224.61 6, 032, 649.52

FINANCIAL ASSUMPTIONS
1. Then business is financed by 100% equity.
2. Project inflation rate is 4% per year.
3. Estimated useful life of non-current asset is 5 years except for the Building
which is estimated to have an expected useful life of 15 years.
4. Straight line method of depreciation is used.
5. Salaries will increase by 5% per year.
6. Owners withdrawal is 300,000 per year
7. Sales and cost of sales will increase by 5% per year.

49 | P a g e
50 | P a g e