OPERATIONAL PERFORMANCE OF PURIFIED WATER REFILLING

STATIONS IN MINTAL, DAVAO CITY

A Thesis Presented to the Faculty of Business Administration of Holy Child

College of Davao City

In Partial Fulfillment of the Requirements for the Degree in Business

Administration Major in Marketing Management

By:

Paul Jykyll Rosete Bauzon

Christian Avila

Elton John Ducusin

 CHAPTER 1

The Problem and its Setting

Introduction

Water is life and distinguishes our planet compared to all the others we

know about. While the global supply of available freshwater is more than
adequate to meet all current and foreseeable water demands, its spatial and
temporal distributions are not. There are many regions where freshwater
resources are inadequate to meet domestic, economic development and
environmental needs. In such regions, the lack of adequate clean water to meet
human drinking water and sanitation needs is indeed a constraint on human
health and productivity and hence on economic development as well as on the
maintenance of a clean environment and healthy ecosystems.

Major rivers – including the Colorado River in the western United States

and the Yellow River in China – no longer reach the sea in most years.
The California drought is exacerbating the large and growing gap between the
state’s water use and the available water supply, while the Western Cape
drought is causing a significant water crisis never seen before in South
Africa: Level 4 water restrictions are being imposed, limiting the consumption of
water to 50 litres per person per day. The world’s water is increasingly becoming
degraded in quality, threatening the health of people and ecosystems and
increasing the cost of treatment. Some 780 million people around the globe still
lack access to clean water and thousands perish daily for the lack of it. Geoplast
(2018 Feb, 22)

Everyone everywhere has the right to water. Unfortunately, billions of

people around the world have no access to safely managed drinking water,
defined as water that is accessible on premises, available when needed and free
from contamination. In the Philippines, around 1 in 10 people still do not have
access to improved water sources.
 “Water is an extremely important resource that we cannot live without. But
there are Filipinos who are still being left behind in terms of access to improved
water sources, especially in rural communities,” said Dr Gundo Weiler, WHO
Representative in the Philippines.

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. Its 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. It’s 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. (Jamae R. Garcia, DCWD corporate
philosopher 2019)

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 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 will conduct a study about the operational performance of

Purified water business in Mintal, Davao City 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.
Statement of the Problem

The study aims to assess the operational performance of Purified Water

Business in Mintal, Davao City. More specifically it aims to answer the following
questions:

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

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 aspects

4. What are the business operation initiatives that will enhance the operational
performance of purified water business in Mintal, Davao City?
Hypothesis

Null Hypothesis: The operational performance of Purified Water Refilling Stations

in Mintal, Davao City is not affected by its marketing, management, technical and
financial aspects.
Alternative Hypothesis: The operational performances of Purified Water Refilling
Station in Mintal, Davao City have different significant effect by its marketing,
management, technical and financial aspects.

Review Related Literature

In this literature review, presents selected readings, survey results and

related studies globally and locally to provide further support for this study.

Type of Business Ownership- According to (Kevin Smith-April 19, 2017) a key

first step for any entrepreneur is setting up an organization that will be used to
formally embark on the business journey, but many new business owners
struggle to identify the best way to move forward. These are the most common
ways to organize a business, from the simplest through the most complex.

1. Sole Proprietorship- is the most basic form of business ownership,

where there is one sole owner who is responsible for the business.
2. Partnership- is a form of business ownership where two or more people
act as co-owners.
3. Corporation- is a form of ownership that is a legal entity separate from
its owners. This creates a limited liability for all owners, but results in a
double taxation on profits.
4. Limited Liability Company- a form of business ownership that is taxed
like a partnership but enjoys the benefits of a limited liability like a
corporation.
 5. S Corporation- is a type of business ownership that allows its owners to
avoid double taxation because the organization is not required to pay
corporate taxes. Instead, all profits or losses are passed on to owners of
the organization to report on their personal income tax. This form of
ownership does allow for limited liability, similar to a corporation, but
without the double taxation.
6. Franchise- this form of ownership allows a franchisee to borrow the
franchisor’s business model and brand for a specified period.
7. Co-operative- are organizations that are owned and controlled by an
association of members. This form of ownership allows for a more
democratic approach to control where each share is worth the same
amount of votes, similar to a corporation with common stock. It also offers
limited liability to its owners and equal profit distribution based on
ownership percentage.

Length of Business Operations

In his book “Creative Destruction”, Richard N. Foster revealed that the rate
that company’s fall off of the S&P 500 – the 500 most valuable companies traded
on the U.S. stock market – is accelerating. In 1958, the lifespan for a company
on the list was roughly 61 years. Today, the average is just 18 years. At this rate,
75 per cent of the S&P 500 will be replaced by 2027. The reasons behind this
shift are many, but in recent years, the advent of the Internet and cloud has
reshaped how, when and where we do business. In the current economy,
businesses and investors alike are all asking themselves what determines the
healthy lifespan of a company? In an age of unicorns, where are the cockroaches
that will outlast them all?
Initial Investment

According to Rosemary Peavler (10 January 2019) initial investment is

also called start-up capital. It is the money a business owner needs to start up a
firm. It may include the business owner's own money, money borrowed from a
variety of sources, including family and friends or banks, or money raised from
investors.

Target Market

According to Mandy Porta (25 February 2015) given the current state of
the economy, having a well-defined target market is more important than ever.
No one can afford to target everyone. Small businesses can effectively compete
with large companies by targeting a niche market.

Many businesses say they target "anyone interested in my services."

Some say they target small-business owners, homeowners, or stay-at-home
moms. All of these targets are too general.

Targeting a specific market does not mean that you are excluding people
who do not fit your criteria. Rather, target marketing allows you to focus your
marketing dollars and brand message on a specific market that is more likely to
buy from you than other markets. This is a much more affordable, efficient, and
effective way to reach potential clients and generate business.

Average Monthly Income

A small business owner is an individual who manages his own

organization. These entrepreneurs can be found within all industries, including
retail, entertainment, financial services and law. A formal educational background
is not required to become a successful small business owner. What is needed
however is a good idea, a solid business plan and startup capital. Due to the
variety of organizations that make up this sector, the average income of small
business owners varies widely, depending upon level of experience, location of
employment and gender. (KJ Henderson 2015)

According to (PayScale Phil. 2019) the average monthly income for small
businesses is PHP 15, 332.00 to PHP 144, 000.00. Small business owners and
operators work in a variety of industries such as retail goods, auto repair, home
inspection, and many others. Their primary duties (outside of their respective skill
or trade) include managing employees, providing customer service, promoting
their business, filing and documenting appropriate business accounts, and
ensuring their business meets any local, state, and federal requirements. Small
business owners may work from a storefront, office space, or even from their
home. Depending on the type of business, trade, or service they practice, their
hours can vary; however, many organizations operate during daytime hours.

Marketing

The action or business of promoting and selling products or services,

including market research and advertising.

Management

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.

Theoretical Framework

This study describes an economic assessment of the policies and

strategies use in water refilling station in Mintal, Davao City. A number of
economic theories which relate to water allocation and water pollution control are
outlined, with an emphasis on pricing theory. Results of a survey that will
undertake on charges made for barangay Mintal water refilling station services
will be given. The strategies that will be used to manage water resources and to
provide finance for water-related services are then evaluate in the light of
overseas policies, and the strategies suggested by economic theory. It will
conclude a greater use of pricing policies based on marginal cost pricing, which
relates charges to the cost of providing water services, would lead to a more
efficient and equitable allocation of water resources.

The study is guided by two theories: The Evolutionary Theory of

Economics and the Institutional Theory. “Theory triangulation entails the choice
of theories that have been shown to be able to bring out the underlying
assumptions behind different kinds of understanding that are embedded in the
data” (Ma & Norwich, 2007: 223). The choice of theories and their interpretation
were evolved and manipulated in accordance with the initial focus of the research
and the shifts throughout the data collection. While the evolutionary theory
guides the framework with its ontological, heuristic and methodological
standpoints, the theory of institutions is the key reference for framing the data
analysis. The conceptual domain of the evolutionary theory of economics was
also used to enrich and strengthen the arguments presented in this paper as it
has provided fruitful insight in understanding the role of organizations in an
economic process. Furthermore, additional concepts were incorporated into the
discussion such as excludability and rivalness so that the theoretical framework
has become more complete for the analysis of microenterprises operating
particularly in water market.

Conceptual Framework

Operational
Marketing Performance

Management Operational Problem

Technical Aspects Respondents

Financial Aspects

Water Refilling Stations in

Mintal, Davao City

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

The importance of the study aims to know the operational performance of

purified water business in Mintal, Davao City. Moreover, the following are
expected to benefit:

1. Owners. They will be able to identify the solutions that may aid them to
solve the problems they encounter in the business operations.

2. Employees. They will be able to identify the various aspects that promote
financial stability of their company and find bases on how they can
contribute to each identified aspect.
3. Consumers. Have knowledge and awareness as to the operation and
status of the said business.
4. Management. This study will aim to aid the management to enhance their
operation and assess their current year status.
5. Market Analysts. With the progression of the study, market analysts will
be benefitted which could contribute to their existing related data.
6. Business Entities. Results can be used as their basis in designing their
marketing plan.
7. 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.
8. Future Researchers. This research will serve as a related study which
will provide data that may be undertaken in future.

Scope and Delimitation

The researcher focused on determining the operational performance of 7

purified water businesses/ refilling stations in the Barangay of Mintal, Davao City
with 7 respondents also. 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.

Definition of Terms

Approved water source - refers to the source of water, 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.
 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.
 Chapter 2

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 is use in the conduct of this study. It

assessed how the respondents perceived the factors that affect 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 respondents and 7 purified water

businesses/ refilling stations operating in the Mintal, Davao City. 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 barangay
to identify the registered business operating in the said industry.

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 needed for
the study. First, prepared a request for an interview with the Business Processing
and Licensing Officer of Mintal, Davao City to identify her target population which
are the registered purified water refilling stations in Mintal, Davao City. After the
interview had been set and conducted, a survey form will 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.
 OPERATIONAL PERFORMANCE OF PURIFIED WATER REFILLING
STATIONS IN Mintal, Davao City

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.
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
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

Marketing 5 4 3 2 1
2 1.50-2.49 Weak

Management 5 4 3 2 1
1 1.0-1.49 Very Weak

5 4 3 2 1
 Technical Aspect

Financial Aspect 5 4 3 2 1

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

Scale Ratings Description Interpretation

Strongly When the item described by the

5 4.50-5.00 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 Disagree statement is not true all the time.

Strongly When the item described by the

1 1.0-1.49 Disagree statement rarely true.

Marketing 5 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.
Management 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 5 4 3 2 1
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 5 4 3 2 1
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?

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