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INTRODUCTION
country we need to open business opportunities which will enhance opening of jobs
to the unemployed. When people open up a business they consider many aspects,
the best project, how profitable it is and what is their market share. It has been
economic growth, and brings people from place to place. Since no part of
motorbikes is permanent, there are always demand for parts, accessories and
CALABARZON. The target market of the proposed business are the motorcycle
Tartaria, Silang, Cavite. The financier of the business is Mr. Michael Barolo, a
Silang, Cavite.
C. Objective
The main objective of this study is to ascertain the viability and feasibility of
the proposed venture. Specifically, objectives from the point of view of the four
1. Marketing
fairly and be able to sell the proposed product to its target market.
2. Technical
and services of the business in order to determine the time involved and labor cost.
c. To design and layout the floor plan of the business to ensure smooth and
target market for the effective selling of its product and services.
e. To determine the operating cost, labor costs, and other cost of production
efficient operation.
4. Financial
business.
To the businessmen, this will serve as a guide to those who are interested in
To the researchers, this study will supply them the opportunities to apply the
To the school, this study will give additional guide and reference to the body
of knowledge;
To the readers, this will serve as reference for their related studies and
To the community, this may offer new information and ideas that could
chosen field of education and can be used on his future business plans.
This research cover the area of Barangay Tartaria, Silang, Cavite. The
The target market of the proposed business are the motorcycle owners in
Barangay Tartaria, Silang, Cavite. This study is projected for a span of five (5)
years. Information were taken through personal interviews, books, magazines, and
internet observations.
There were certain limitations with regards to gathering of data and
information due to the relatively short time that the researcher needs to cope up. A
interviews, and research findings. Some of the informations were limited due to the
F. Methodology
The researcher used both primary and secondary data in collecting facts and
information. Primary data came from the original sources and were collected
especially for the task at hand which includes interviews and surveys. Secondary
data were based on the original piece of written or printed material conveying
relevant information about the study derived from magazines and other related
books.
1. Sources of Data
a. Primary Data
The survey questionnaire was first presented for validation to the experts
as well as to laymen to make sure that the survey questionnaire will be understood
by the respondents. After validation, the survey questionnaire was revised and
finalized before being administered to sample size that represents the total
The data were derived from the printed materials, books, magazines,
Microsoft Encarta and internet related to the study. The researcher obtained
information from J. L Detwiler Memorial Library, and the Department of Trade and
Industry. To compute the sample size, the Slovin’s formula was used:
(Mariampolski, (2001)
N
n=
1+Ne2
2,563
n =
1+641(.052)
2,563
n =
7.41
n = 346
2. Research Design
those who are currently in this type of business or have experienced in business.
Table 1 shows the target market population of the proposed business with the
represents the total population of 2,563. Out of 346 survey questionnaires distributed
Table 1
Survey Questionnaires Distributed
3. Treatment of Data
All data gathered were treated manually which has been tallied and tabulated
according to the result of the survey questionnaires. Treatment of data was done
through the use of ratios to determine profitability, liquidity, and stability of the
To determine the earning power of the project, the researcher applied the
following formulas:
present value (PV) terms, once financing charges are met. (Brealey, 2007)
Formula: NPV = (Bi – Ci)/ (1 + r) n
Where; 1=0
Bi = Benefit in period 1
Ci = Benefit in period 1
r = Discount Rate
a = Discount Period
If IRR is higher than the cut off rate, then the return is high, accept
of cost-benefit analysis, that attempts to summarize the overall value for money of a
Ci = Cost in Period 1
R = Discount Rate
N = Discount Period
If B/CR is positive, the gross benefits are greater than the gross cost,
accept.
4. Profitability Ratio
This used to measure the success of the firm in generating profit. The ratios
a. Return on Sales. This ratio indicates the amount of net income per peso
sales or the profitability based on sales. A ratio significantly greater than zero
2007)
b. Return on Investment. This measures the amount of net income per peso
Net Income
Return on Investment =
Total Investment (Average)
c. Gross Profit Ratio. The ratio indicates the gross margin per peso of sales.
A resulting gross profit ratio which is adequate to cover operation expenses and
provide desired income shows that the proposed project is to be accepted. (Brealey,
2007)
Gross Profit
Gross Profit Ratio =
Net Sales
5. Liquidity Ratio
A current ratio higher than 100% may indicate liquidity; therefore, the project
Current Assets
Current Ratio =
Current Liabilites
to extinguish current obligations from liquid assets, a ratio greater than 100%
project.
(Brealey, 2007)
size from the corner shop to large franchises with many locations. Specializations
Motorcycle shops are interesting in that they are combinations of service type
businesses with retailing aspects mixed in. Although they provide the labor and skill,
they must also purchase and resell the needed parts. This often creates conflicts in
Modern motorcycles are being constructed with lighter and more flexible
materials. On one hand lighter construction has made some aspects of the repair
process easier because of the quick replacement process. On the other hand,
because of the lighter materials, vehicles are more susceptible to damage on impact
parts and services to the customer and the rebilling of subcontracted or sublet
materials and services. Additional income may be generated by some shops through
The repair process in a motorcycle shop typically begins with the preparation
of an estimate by the shop, either on the premises, or in the field if the vehicle is not
drivable. The estimate includes detailed categories of expense for labor, parts (at the
retail list price), the cost of work to be done off the premises, and towing, if
rates differ for each category of service. The distinction is usually made between
metal and less highly compensated service or finishing labor. Frame labor, if not
sublet, may also be stated separately and will command the highest hourly rate.
Mechanical labor in repair shops is generally billed at a flat hourly rate for all
services without the distinction made in body shops even though the skill level
products to ensure they work efficiently and to prevent breakdown and unnecessary
passenger cars, motorcycles, trucks, and vans, and all trailers. Establishments in
this industry group employ mechanics with specialized technical skills to diagnose
and repair the mechanical and electrical systems for automotive vehicles, repair
years, motorcycles with carburetors will be a thing of the past, replaced by elaborate
are being shelved in favor of more durable four-stroke versions. As a result, dealers
and shopkeepers are becoming hard-pressed to hire and retain mechanics that are
They've graduated from specialized small-engine training programs and have been
involved in apprentice work and mentoring programs as they've worked through the
early stages of their careers. Younger mechanics at the start of their careers can
all aspects of the motorcycle. Even so, the amount of basic electronic and computer
knowledge employers expect of the young mechanics they hire continues to rise.
(Vingno, 2011)
A typical repair shop will host a wide variety of tools. From the most common
machines, gauges, voltmeters and engine diagnostic equipment, the average shop
is equipped to repair any problem in the minimum amount of time. Repair shops will
purchase tools from a wide variety of sources. Mobile tool dealers are a traditionally
large and reliable source for many dealers. Specialty tools from manufacturers rank
a close second, with the local hardware store bringing up a distant third. (Dacillo,
2012)
The records kept by motorcycle repair shops are generally neither elaborate
nor complex. Most function as closely held small businesses with virtually no internal
controls in place and little on site accounting supervision. Larger shops may employ
some clerical help but often smaller establishments simply submit their check stubs
and a stack of repair orders and/or their banking records to an outside accountant on
a monthly or quarterly basis for posting and preparation of the accounting records
and tax returns. The source documents may be maintained in a file or a carton or
A distinction should be made between the term "repair" and "replace". These
two terms involve separate processes. If a body component has been completely
mangled, it will simply be "replaced". This is the easiest type of body work since the
process involved is simply purchasing the part, installation, and painting. "Repair"
work may involve pounding out a dent if it is simple, or it may involve straightening
the frame which is the most extensive and complex type of body work. (Dela Peña,
2011)
The increasing use of Motorbikes, plus the upgrading of more complex parts
on the motorbike has provided a lucrative field for qualified mechanics. It has been
known that today there are so many motorbike repair shops and it continuously
growing which means that the business in this field has a big demand. Motorbike
repair shop is one of the most important places for the owners of the vehicles
whenever they have encountered problem with their vehicles. (Pasar, 2007)
H. Definition of Terms
whereby the brake lines (the pipes and hoses containing the brake fluid) are purged
Dealership is a business that sells new or used motor vehicles at the retail
measured in ohms.
Suspension are springs and shock absorbers, usually front and rear, the
are purchased by another company and retailed under that purchasing company's
brand name.