Operation practices of utility vehicle express service its impact to financial performance

Introduction

Transportation, as defined, is the process of being transferred from one point to another. By this
definition, one can infer that transportation has been undertaken since the early man; though the
conduit to achieving such end varies from a generation to another.

In the modern sense thigh, transportation may be defined as the act of being transported from one
location to another, by the use of transporting implements including, but not limited to transportation
by vehicle, bicycle or by any other variation of these modes of transportation.

Without a doubt, the act of transportation as undertaken by any means, is a precursor to development.
Since the time of the primitive man, movement has been accounted for the many different changes in
the early way of life, as much as it has prompted for the modern way of living as we know it to be these
days. The Nomads, for instance, proven that movement from one place to another id a way to survive.
By it are they able to find conducive environments that can support their living as of the moment. They
look from a location to another to carry out the necessary activities to supporting life. By the same
movement do the early communities are found, to the inception of organized tribes and group of people
as well. By this, it may be said that without transportation, or movement from a place to another, the
developments that we enjoy today many not be possible.

Without the need for emphasis, transporting from one place to another is a necessity. Even before the
invention of the modern transportation facilities that we enjoy today, man has been enjoying the
benefits of being able to move from one place to another. They are able to seek for food which sustains
their needs, to finding jobs to support their family, to going to schools and such other places which serve
as initiatives for one’s development.

In the modern days, the importance of transportation lies in the fact that without it, we may not be able
to undertake our daily tasks and duties that are required to live a quality kind of life. Without
transportation and the means to undertake it, we may not be able to perform the necessary activities
for life, to attending to our activities in our pursuit for further development as human beings.

At his point, it may be said that the most prevalent and available mode of transportation in the society is
by land vehicles, especially four-wheeled vehicles, otherwise known as cars. Through these cars, in all
and every variation, transportation is better efficiency as well. In the first world countries, the ratio of
car and family is 1:1; however, in the Philippines, not all families are able to afford their own car. More
often than not, a typical, average Filipino family cannot afford to buy a car, and so with this, public
transportation is resorted to.

In the Philippines, there are a number of public transportation available for the convenience of the
commuting public. To name some, there is the jeepney, taxi, van or UV express, tricycle, and train;
among many others. While some of these public transportation means are operated and maintained bu
the government, still a majority of these public conveniences are operated by private individuals. With
both the government, still a majority of these public conveniences are operated by private individuals.
With both the government and private entities providing for public transportation means, the
commuting public are provided with more options when it comes to their transportation need, more so,
they enjoy a better availability for these forms of public transportation as well.

According to studies, majority of the Filipino people commute on a daily basis. They commute to work,
to school, to their homes, and to any other places they intend to be in at any given moment. Likewise, it
is a fact that majority of these public transportation means are owned and operate by private
individuals, who then, assume the responsibility for these commuting public.

As the majority of the Filipino people are commuters, the government has since then, undertaken steps
to protect the interest of the commuting public. Government agencies and offices have been
established in order to regulate these public transportation means. To name one, there is the Land
Transportation and Franchise Regulatory Board to regulate and impose rules and regulations to public
convenience owners and operators.

The regulation as imposed by the LTFRB is a necessity. The government simply cannot relinquish their
responsibility to its citizen by not imposing such standards as it would adhere given the privilege to offer
ample public transportation . with this, private operators and owners of public conveniences are given
standards to adhere to, responsibilities to undertake, and liabilities too; as the case may be.

Without these regulation imposed upon private individuals who operate and own public convenience,
the commuting public may then constantly incur the great risk if not having a responsible party in case
they are not able to arrive safely at their destination by the negligence of these private operators of
public conveniences.

As a vast majority of the Filipino people are commuters, it is then important to know about the rules an
regulation imposed by the government agencies, and by the LTFRB among the private owners and
operators of public convenience. With this, one may be able to rest assured that in terms of
transportation, the government is relentless in its aim to take care of its constituents.
Scope and delimitation

The primary target of the study is the Utility Vehicle (UV) Express Service bound from Tabaco City vice
versa. The scope of the study is the impact of the franchisee’s operations management practices to its
financial performance, as well as the franchisee’s compliance to the governing bodies’policies and rules
and regulations of the UV Express Service Franchisee of the aforementioned route.

The study would neither take into account other franchisees of the UV Express Services, nor give
emphasis on the topics and concepts relating to franchise and Franchise Accounting. Instead, it would
only focus on the operations management practices of the UV Express Service regard to its business
profile, accounting for revenue and expenditure, operation, together with its compliance on the policies
and rules and regulations promulgated by the governing bodies which is the Land Transportation Office
(LTO) and the Land Transportation Franchising Regulatory Board (LTFRB). The study will also consider
the financial performance of the business through Financial Statements analysis; Vertical and Horizontal
analysis

Significance of the study

The findings and recommendation of this study would be useful to the following:

Management of the UV Express Service. This study will aid the management of the UV Express Service
to be more knowledgeable of the rules and regulations of LTO and LTFRB and on how they will comply
with those. This study will also help the management to be well-informed of the impact of this
compliance to its financial performance.

Franchisees. This study will help all the franchisees of the UV Express Service to identify the operation
management practices adapted by UV Express Services as well as the compliance with the government
regulations.
Government Agencies. This study will help informing government agencies especially the Land
Transportation Franchising and Regulatory Board (LTFRB), and the Land Transportation Office (LTO), as
to how a franchisee manages the franchise of the vehicle they are riding.

Present and Future Researchers. As business course students, this study will aid the researchers to
enhance their knowledge regarding the operation management in connection with the financial
performance specifically of a franchise business of UV Express Service. This study will provide important
insights, related data and information that could serve as the frame for similar succeeding researchers.

Chapter 2

Conceptual framework

Every business as a proprietary venture needs to have a system for management, from the smallest kind
of business up to the largest. They need their own management concept to perform their smoothly and
accomplish their goals and objectives that it has set forth.

As to our study, the respondent focus on the operations management practices with regards to the
compliance to the government agencies which are the LTO and LTFRB and the accounting for revenues
and expenditures adapted by a franchisee of Utility Vehicle (UV) Express Service in Tabaco as well as its
impact to financial performance.

figure 2 : conceptual framework

UTILITY VEHICLE
EXPRESS SERVICES

F
PROFILE
E
E
D
B
A
C
K
OPERATION MANAGEMENT