Flying high : a strategic plan for PAG-ASA Transport and Service Cooperative (CY-2015-2017) Alphabet G. Gulanes ; Thaddeus R. Acuña, Aurelia Luzviminda V. Gomez, Sylvia B. Concepcion, advisers.
Material type: TextLanguage: English Publication details: Davao City: School of Management, University of the Philippines Mindanao, c2015.Description: xi, 68 leavesSubject(s): Summary: Pag-asa Transport and Service Cooperative (PAGTRASCO) is one of the longest operating cooperative in the Philippines having served its members for the past 23 years. Among others, as a transport cooperative open to drivers, operators, and allied workers residing in the area of operation, its main service for its members and business for non-members is the gasoline station in partnership with Flying V. PAGTRANSCO envisions itself as determined, self-reliant, progressive and strong cooperative, planning and working for the economic upliftment of its member and totally commit and work for peace and prosperity in its area of operation. In its 25 years of operation, PAGTRASCO has gone through a lot of challenges. Fortunately, it was able to withstand those challenges. Commendably, in 2013, its financial performance has improved with 69.85 % increase on Return on Share Capital among other financial aspects. This commendable financial performance must be sustained and translated into further development of the cooperative as an organization for its members and the community. Also, in these fast changing time, PAGTRASCO has to have a more proactive stance. This strategic plan is the first step towards achieving a sustained commendable financial performance and be a more proactive cooperative. The internal and external factors affecting the organization were assessed to know the opportunities, threats, strengths, and weaknesses of the cooperative. Opportunities for PAGTRASCO could be summed up in the following statements: 1) growing demand due to socio-economic development; 2) increasing vehicle traffic/vehicle ownership; 3) presence of institutional buyers, including possible tie-ups with other cooperatives; and 4) potential big market for membership. Threats to PAGTRASCO on the other hand are: 1) Intense rivalry due to presence of several gas stations in the area; and 2) possible entry of new players including in nearby towns and other ASEAN countries due to the ASEAN Economic Community. The strengths of PAGTRASCO are: 1) its inherent attribute as a cooperative to give patronage refund and dividend to its members, competitors in Pantukan do not have this attribute; 2) officers have the integrity and reliability required for coop officers; 3) the manager is very committed in running the business and making it a success; 4) the staff are reliable and friendly. The last three strengths are very important in a cooperative because it has been observed in the history of cooperatives in the Philippines that failures most often than not are due to uncommitted and unreliable officers and management staff. Weaknesses are as follows: 1) PAGTRASCO, although it has policies and procedures, these are not clearly organized and written in a Manual of Policies and Procedures as required in the COOP Standard; 2) three major organizational functions (business operations, cooperative matters, and marketing) are being handled by only one person, the cooperative manager; 3) there is no clear delineation on who handles the welfare of membership and other important aspects of membership; and 4) there is no clear marketing plan, target market. The Quantitative Strategic Planning Matrix (QSPM) was used to objectively decide for the best strategic options. These are 1) market penetration through stronger linkages; 2) Customer Relationship Management and Development, and one which is an actual must for the organization and not a choice, that is, for the organization to 3) improve its internal business processes. Projected Profitability Ratios show sustained increase in Net Saving Margin from baseline of 45.29% in 2013 to 66% in 2015, 71% in 2016, and 74% in 2017. PAGTRASCO will also be able to maintain gross profit of 5% throughout the implementation period by being prudent in its spending starting with proper budgeting. On the Return on Members Capital, projections are at 61% in 2015, 93% in 2016, and 60% in 2017. Although there was a decrease in 2017 because the cooperative will be allocating religiously the CDA mandated allocation for Net Savings, the projected returns are still above the target minimum yearly increase in Return on Members Capital stated in Chapter 4, which is at 25%. In terms of liquidity, a ratio of 2:1 indicates that they will be managing their assets well by being not to liquid. With very prudent operations spending combined with the strategies, the cooperative will be able to achieve its target and address its concerns of sustained commendable financial performance.Cover image | Item type | Current library | Collection | Call number | Status | Date due | Barcode |
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Thesis | University Library Archives and Records | Preservation Copy | LG993.2 2015 M21 G85 (Browse shelf(Opens below)) | Not For Loan | 3UPML00036139 |
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Thesis, Graduate (Master in Management)--University of the Philippines Mindanao, April 2015.
Confidential
Pag-asa Transport and Service Cooperative (PAGTRASCO) is one of the longest operating cooperative in the Philippines having served its members for the past 23 years. Among others, as a transport cooperative open to drivers, operators, and allied workers residing in the area of operation, its main service for its members and business for non-members is the gasoline station in partnership with Flying V. PAGTRANSCO envisions itself as determined, self-reliant, progressive and strong cooperative, planning and working for the economic upliftment of its member and totally commit and work for peace and prosperity in its area of operation. In its 25 years of operation, PAGTRASCO has gone through a lot of challenges. Fortunately, it was able to withstand those challenges. Commendably, in 2013, its financial performance has improved with 69.85 % increase on Return on Share Capital among other financial aspects. This commendable financial performance must be sustained and translated into further development of the cooperative as an organization for its members and the community. Also, in these fast changing time, PAGTRASCO has to have a more proactive stance. This strategic plan is the first step towards achieving a sustained commendable financial performance and be a more proactive cooperative. The internal and external factors affecting the organization were assessed to know the opportunities, threats, strengths, and weaknesses of the cooperative. Opportunities for PAGTRASCO could be summed up in the following statements: 1) growing demand due to socio-economic development; 2) increasing vehicle traffic/vehicle ownership; 3) presence of institutional buyers, including possible tie-ups with other cooperatives; and 4) potential big market for membership. Threats to PAGTRASCO on the other hand are: 1) Intense rivalry due to presence of several gas stations in the area; and 2) possible entry of new players including in nearby towns and other ASEAN countries due to the ASEAN Economic Community. The strengths of PAGTRASCO are: 1) its inherent attribute as a cooperative to give patronage refund and dividend to its members, competitors in Pantukan do not have this attribute; 2) officers have the integrity and reliability required for coop officers; 3) the manager is very committed in running the business and making it a success; 4) the staff are reliable and friendly. The last three strengths are very important in a cooperative because it has been observed in the history of cooperatives in the Philippines that failures most often than not are due to uncommitted and unreliable officers and management staff. Weaknesses are as follows: 1) PAGTRASCO, although it has policies and procedures, these are not clearly organized and written in a Manual of Policies and Procedures as required in the COOP Standard; 2) three major organizational functions (business operations, cooperative matters, and marketing) are being handled by only one person, the cooperative manager; 3) there is no clear delineation on who handles the welfare of membership and other important aspects of membership; and 4) there is no clear marketing plan, target market. The Quantitative Strategic Planning Matrix (QSPM) was used to objectively decide for the best strategic options. These are 1) market penetration through stronger linkages; 2) Customer Relationship Management and Development, and one which is an actual must for the organization and not a choice, that is, for the organization to 3) improve its internal business processes. Projected Profitability Ratios show sustained increase in Net Saving Margin from baseline of 45.29% in 2013 to 66% in 2015, 71% in 2016, and 74% in 2017. PAGTRASCO will also be able to maintain gross profit of 5% throughout the implementation period by being prudent in its spending starting with proper budgeting. On the Return on Members Capital, projections are at 61% in 2015, 93% in 2016, and 60% in 2017. Although there was a decrease in 2017 because the cooperative will be allocating religiously the CDA mandated allocation for Net Savings, the projected returns are still above the target minimum yearly increase in Return on Members Capital stated in Chapter 4, which is at 25%. In terms of liquidity, a ratio of 2:1 indicates that they will be managing their assets well by being not to liquid. With very prudent operations spending combined with the strategies, the cooperative will be able to achieve its target and address its concerns of sustained commendable financial performance.
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