The Unsuccessful Operation of

Baler Bay Cruise: A Floating Restaurant

CLIFFORD N. CAGBAY

Master in Business Administration

S.Y. 2016-2017

0947-877-5362

dark_cliff09@yahoo.com
 MATRIX OF LITERATURE REVIEW

OBJECTIVES
AUTHOR OF THE METHODS FINDINGS
STUDY
Beverly Chen To identify Qualitative Case The study revealed that
factors Research Study Method restaurateurs have different
influencing the perceptions of restaurants
success of success, with most relating
restaurant success to feelings of
industry. achievement rather than
financial gain.
H. G. To study why Investigated restaurant The key finding was that a
PARSA, Restaurants Fail failure using successful restaurant
JOHN T. qualitative and requires focus on a clear
SELF, quantitative methods in concept that drives all
DAVID two independent steps. activities. In this
NJITE, and Step I consists of finding, concept is distinct
TIFFANY findings from from strategy.
KING quantitative assessment
of
restaurant failures using
longitudinal
data from 1996 to 1999;
step II reveals
findings from qualitative
investigation of
managerial perceptions
and views of
restaurateurs.
H.G. Parsa, WHY DO A variety of factors have
MS, MS, RESTAURANTS been identified as
Ph.D., FMP FAIL? PART III: contributing to the
Amy Gregory, AN ANALYSIS approximate
MBA OF MACRO 30% failure rate of
Michael Doc AND restaurants in their first
Terry, MBA MICRO year. Restaurant failures are
FACTORS contributing over $1.78
billion in potential revenue
loss to the American GDP
INTRODUCTION

As with all business organizations, restaurants follow certain stages in a life cycle. At

any point along these life-cycle stages, a business can suffer setbacks catastrophic enough to

lead to failure. Throughout the life cycle, the first stages are the most vulnerable, which is

why the highest proportion of businesses that close are relatively new.

This liability of newness has linked organizational adolescence to increased

organizational mortality rates. One reason for early failure is that new businesses typically

have limited resources that would allow them to be flexible or adapt to changing conditions.

Following that logic, it is believed that the longer a company is in business, the less

likely it is to fail. Prior research has found that as each year of survival goes by, the failure

rate is likely to go down, and by the fourth, fifth, and sixth years, only a modest, but steady,

number fail each year.

Floating restaurant is a vessel, which is usually a type of steel barge, used as a

restaurant on water. Floating restaurants a new phenomenon for dining out in the Philippines,

where customers can be provided not only with a meal but also an entertaining casual dining

experience with unrivalled views of the bodies of water. Floating restaurant is one of the

fastest growing sectors for dining out in the Philippines.

Baler Bay Cruise is the first trimaran floating restaurant in the Philippines. Trimaran,

is a multihull boat that comprises a main hull and two smaller outrigger hulls (or "floats")

which are attached to the main hull with lateral beams. Trimarans are most commonly sail-

driven yachts designed for recreation or racing, but there are a few trimaran ferries and

warships. Baler Bay Cruise is a project of Provincial Government of Aurora amounting to 3

million pesos and only operated for over a month. The Project was unsuccessful and never

able to compete to other restaurant.

STATEMENT OF THE PROBLEMS

The primary aim of this study is to assess the unsuccessful operation of Baler Bay

Cruise, a floating restaurant in Baler, Aurora.

Specifically, this will seek answers to the following research problems:

1. What is the perception of selected respondent from Baler, Aurora why Baler Bay

Cruise didnt succeed in operating?

1.1 Economic Perspective

1.2 Marketing Perspective

1.3 Managerial Perspective

THEORETICAL FRAMEWORKS

This research studied why Baler Bay Cruise failed to be a successful restaurant when

in fact that it is the first floating restaurant in the Philippines.

Economic perspective. This category includes restaurants that failed for economic

reasons such as decreased profits from diminished revenues; depressed profits resulting from

poor controls; and voluntary and involuntary bankruptcies, involving foreclosures, takeover

by creditors, receiverships, or frozen assets for nonpayment of receipts.

Marketing perspective. This category consists of restaurants that cease to operate at a

specified location for marketing reasons, such as a deliberate strategic choice of

repositioning, adapting to changing demographics, accommodating the unrealized demand

for new services and products, market consolidation to gain market share in selected regions,

and realignment of the product portfolio that requires selected unit closures.

Managerial perspective. This category consists of restaurant failures that are the result

of managerial limitations and incompetence. Examples of this group include loss of

motivation by owners; management or owner burnout as a result of stress arising from

operational problems; issues and concerns of human resources; changes in the personal life of

the manager or owner; changes in the stages of the manager or owners personal life cycle;

and legal, technological, and environmental changes that demand operational modifications.
RESEARCH PARADIGM

Economic
Perspective

Unsuccessful
Operation

Marketing Managerial
Perspective Perspective
METHODOLOGY

A quantitative approach was followed. Burns and Grove (1993:777) define

quantitative research as a formal, objective, systematic process to describe and test

relationships and examine cause and effect interactions among variables. Surveys may be

used for descriptive, explanatory and exploratory research. A descriptive survey design was

used. A survey is used to collect original data for describing a population too large to observe

directly (Mouton 1996:232). A survey obtains information from a sample of people by means

of self-report, that is, the people respond to a series of questions posed by the investigator

(Polit & Hungler 1993:148). In this study the information was collected through self-

administered questionnaires distributed personally to the subjects by the researcher.

A descriptive survey was selected because it provides an accurate portrayal or account

of the characteristics, for example behaviour, opinions, abilities, beliefs, and knowledge of a

particular individual, situation or group. This design was chosen to meet the objectives of the

study, namely to determine the knowledge and views of patients and family members with

regard to diabetes mellitus and its treatment regimen (Burns & Grove 1993:29).

A convenient sample of 10 subjects was selected from the town of Baler. Mouton

(1996:132) defines a sample as elements selected with the intention of finding out something

about the total population from which they are taken. A convenient sample consists of

subjects included in the study because they happen to be in the right place at the right time

(Polit & Hungler 1993:176). The sample included Provincial Government of Aurora

Employees 5 under the General Services Office and 5 under the tourism office. The sample
size of 10 were the total of subjects who were willing to participate in the research and who

met the sampling criteria during the one-month period of data collection.

A questionnaire was chosen as data collection instrument. A questionnaire is a printed

self-report form designed to elicit information that can be obtained through the written

responses of the subjects. The information obtained through a questionnaire is similar to that

obtained by an interview, but the questions tend to have less depth (Burns & Grove

1993:368). Data was collected with the aid of questionnaires to evaluate the patients' and

family members' knowledge and views on diabetes mellitus. Questionnaires were decided

upon because of the following:

They ensured a high response rate as the questionnaires were distributed to

respondents to complete and were collected personally by the researcher.

They required less time and energy to administer.

They offered the possibility of anonymity because subjects names were not

required on the completed questionnaires.

There was less opportunity for bias as they were presented in a consistent manner.

Most of the items in the questionnaires were closed, which made it easier to

compare the responses to each item.

Apart from the advantages that have been listed above, questionnaires have their

weaknesses; for example, there is the question of validity and accuracy (Burns & Grove

1993:368). The subjects might not reflect their true opinions but might answer what they

think will please the researcher, and valuable information may be lost as answers are usually

brief.