Project Summary

A. Name of the Project

The proponent chooses a business name which is catchy and easy to remember. It came
up with the name “Feliz Movimiento Car Rental Services”. Feliz is a Spanish word of
‘Happy’ while Movimiento means ‘Move’ in Spanish. It has a Spanish ambiance. Feliz
Movimiento or Happymove means that the customer will enjoy their ride at all time,
great services, fast accommodation, and most of all the safety and security of each and
everyone. The business aims to serve tourists and clients a fun filled experienced and
unforgettable memory.

B. Location: Maa
Feliz Movimiento Car Rental Services will be located at Riverview Maa, Davao City. The
proponent decided to lease an office space unit that has a garage and security for the
safety of all the renters. It is along the highway and a flood-free. (In front of Forest Lake
Maa) Factor such as proximity to the market, means of transportation and the cost of
land and building were considered in choosing the location.

i. Proximity to the Market – The office of the company can easily be found by the
people since it is located along the highway and there is a guard to guide the clients. It is
also an advantage for the company since there has no competitors near the area.
ii. Means of Transportation – The location is just along the Maa road where routes
coming from the highway always pass. It is also located where all the buses from the
airport will pass by.
iii. Cost of Land and Building – The monthly rental of the chosen unit is Php 10,000
with an area of 150 square meters. The place has a free space parking and security
guard which is an advantage for the company so that it will have lesser expenses. It will
be also the first car rental services within the area.

C. Descriptive definition of the Project

Car rental business primarily serve people who require a temporary vehicle, for
example, those who do not own their own car, travellers who are out of town, or
owners of damaged or destroyed vehicles who are awaiting repair or insurance
compensation. It is a company that rents automobiles for short periods of time,
generally ranging from a few hours to a few weeks and primarily located near airports or
 busy city areas and often complemented by a website allowing online reservations.
Davao City is the premier city of Mindanao. The city’s steadily growing economic
activity, skilled workforce, urbanization and modern amenities have made Davao City
the most important economy in Mindanao, and the third most important urban center
in the Philippines. Davao is part of the East Asian Growth Area, a regional economic-
cooperation initiative in Southeast Asia. According to the foundation, the city has a
projected average annual growth of 2.53 percent over a 15-year period; Davao was the
only Philippine city to reach the top 100. Through this, the proponent was inspired to
establish Feliz Movimiento Car Rental Services in a progressive city.

As a car rental company, Feliz Movimiento’s main target is to provide vehicle unit for
lease to those tourists who needs a car in their trips especially those trips that are far
and for the clients that needs car in their special events and for their everyday use.
To assure the clients quality service, the company will be having a social media account
and telephone number for their recommendations, concerns and feedbacks.

D. Project’s Long Range Objectives

In five years, Feliz Movimiento Car Rental Services will upgrade itself from small scale
business into medium scale business. The proponent will increase the numbers of car so
that it can cater the entire customer. It will be upgraded into high end facilities that still
cost a cheaper price and so that the clients will be more relaxed and at the same time
they will enjoy their trips. The company will be sure that they can meet the expectations
of the clients. The company’s target is to have a good service, convenient bookings and
to upgrade its technology to have a better and easy accommodation.

E. Feasibility Criteria
Since the population in the city grow many tourists come and go and it is an advantage
for the business to gain profit. The consideration in operating a car rental company is to
have a good quality service and at the same time safe for all the clients. The purpose of this
business is to generate profit for the proponent so that the business will be maintained and
will grow. Feliz Movimiento believed of a good return because it has a fixed fee and will
always monitor and secure the money.

F. Highlights of the Project

HISTORY
The earliest known example of cars being offered for rent was 1906. It is a German company
which is Sixt was established in 1912 with three cars for rent. Joe Saunders of Omaha,
Nebraska first started with only one borrowed Model T Ford in 1916, but by 1917, his Ford
Livery Company was renting out 18 Model Ts at 10 cents per mile. By 1926, Saunders had
expanded to 56 cities. Saunders' company was bought by Avis in 1955.
An early competitor to Saunders was Walter L. Jacobs, whose Chicago-based Rent-a-Car opened
in 1918 with 12 Ford Model T. The company was bought in 1923 by John Hertz. In Britain, car
rental started with Godfrey Davis, established in 1920, and bought by Europcar in 1981. The
growth in travel after World War II led to the establishment of several well known international
companies, including National Car Rental (1947), Europcar (1949), Enterprise Rent-A-
Car (1957), Thrifty Rent a Car (1958), and Budget Rent a Car (1958).

Car rental hire in the Philippines is popular among inbound tourists looking to travel around the
city and to and from provinces freely and with the privacy of driving themselves; this is
common for both domestic travellers as well as for business trips. In terms of leisure and tour
activities, car rental to be used during the tour is often included in the travel package. Domestic
tourism will continue to boom, with newly discovered and promoted tourist destinations which
are commonly found in nearby cities and towns to the metro areas as a result of growing
demand for travel among working millennial. This presents an opportunity for car rental
companies as the demand continues to grow and the destinations are within their usual range
of trips.

NATURE OF INDUSTRY
Feliz Movimiento Car Rental Services belongs to the transportation industry. This kind of
industry is to provide transportation of passengers and cargo, warehousing, scenic and
sightseeing transportation, and support activities related to modes of transportation.
Establishments in these industries use transportation equipment or transportation related facilities
as a productive assets.
Car rental industry has grown more strongly in recent time, after previous years of
recession. This was primarily due to the fact that airlines saw a decrease in customers which
have now seen an increase too as compared to recent years, thereby linking air travel to car
rentals. This industry is expected to experience remarkable growth.

MODE OF FINANCING
Feliz Movimiento Car Rental Services will be financed by Banco de Oro which is a private bank
and some will be from the owner’s money from the bank also. It will be used for the acquisition
of three (3) vehicles needed for the business.

INVESTMENT COST (1YR)

The total investment cost of the company will be Php.5, 000,000. It will be used for the
operating expense and also the facilities which are: the rental fee, salaries expense, fixtures and
furniture, office supplies, utilities expense, repair and maintenance supply, licenses and
insurance expense and most importantly the vehicle units.

G. Major Assumptions and Summary of Findings and Conclusion

i. Market Feasibility
In the 21st Century, Davao has steadily shifted into a more cosmopolitan city with
advances in information and communications technology. It has become one of the
country’s most modern and progressive cities. The economy of Davao Region grew by
10.9 percent in 2017, the second fastest growth among the 17 regions in the country.
The growth was higher than the 9.5 percent growth recorded in 2016. In this case, car
rental is one of the most in demand since it has more potential clients and passenger. It
is favourable to the company because not all of the people have its own vehicle. The
company will not just gain profit but also can help the people have a source of income
especially the primarily customers which are the drivers.

ii. Technical Feasibility

The process starts when the company start to open opportunities for the employment
of drivers who are important in having this kind of business. The applicants will be asked
to comply with the basic requirements such as driving license, birth certificate, biodata/
resume and police clearance in order for them to be qualified for the driver position.
After complying it all, the applicants will be interviewed and will undergo screening and
training by attending company seminars to discuss the rules and regulations, rent
agreement, schedule of operation, and the proper handling the manner of the clients.
Once the hiring process is done, the company staff will provide the schedule of the
newly hired drivers.

iii. Financial Feasibility

The invested capital and money loaned from the bank for the business should be
enough to support all the expenses during the 1st year of operations. On the 2nd year,
the business will still be recovering since it is new and will still be coping up in the
environment. While on their 3rd and 4th year, the business will expect that the business
has in its balanced state and it will be the time to expect a returning customer. In 5th
year, the proponents assumed that the loan and capital of the company used in all the
expenses in making this business will be fully paid and can generate revenue.

iv. Socio-Economic Feasibility

 The car rental business is one of the most in demand industry. Davao City is
economically flourishing. When transportation improvements increase, the accessibility
of people and business to reach jobs, services, activities and productivity also increases.
Many people particularly those tourists that come for vacation in Davao City wants to be
sure of their safety especially those destinations that are far from the city and for a
cheaper transportation price yet good service. A car rental business would be very
helpful to the tourists that who do not own a car because it can help them to be
productive, convenient and hassle free. Besides it can increase the population’s direct
access to more job options. And most importantly, the company will be able to
contribute to economy development.

v. Organization and Management Feasibility

Feliz Movimiento Car Rental Services is a sole proprietorship. The management
department of a car rental company administrate the operations like advertising,
finances, accounts, human resources, recruitment and etc.; for that reason, four (4)
staffs and one (1) assistant manager will be hired as administrative personnel. One (1)
auto mechanic and one (1) helper will be assigned for the maintenance of the vehicle
units. Most importantly, three (3) drivers for the three vehicle units and will have its
schedule depending on the booking of the clients.

OWNER/MANAGER

HR
ASSISTANT MANAGER
AUTO MECHANIC
ADVERTISING

AUTO MECHANIC HELPER

FINANCE
HELPER

ACCOUNTANT

DRIVERS (3)