CHAPTER 1

INTRODUCTION

1.01 Background of the Study

The proponents are well aware of the increasing number of car owners in Manila as well

as the lack of parking spaces to accommodate such vehicles. Streets are always crowded with

cars, and people, as well as other vehicles, have trouble passing along because of double parking.

Because of such problems arising, complications start to unfold on the streets of Paco, Manila.

Because of the issue of double-parked cars, the streets get very crowded especially during rush

hours because with a place surrounded by schools and office buildings, students just got off their

classes, employees got off with their work; and because of other institutions and condominiums

without or lacking parking spaces, parked cars crowd the streets. This is also a factor that causes

traffic.

Having a secured, sanitary, and accessible place to park cars will significantly reduce

random parking along the streets and provide a spacious way for people to pass through. Plus,

car owners would not have to worry about car vandals, carnapping, and other unfortunate things

that could happen to their vehicles.

Car owners residing or spending most of their time in Paco, Manila are willing to pay for

a service that would guarantee the safety of their vehicles. Providing a parking space will give

them convenience especially with the case of students and workers who have to leave their cars

unattended. In addition, the general public would also benefit from this service for this would

prompt neater and more open streets to pass along, overcrowding due to small spaces to be

restrained, and traffic to be lessen.

 This feasibility study focuses on how to establish a parking space that would attract lots

of customers and be marketed effectively to result to a profit. We conducted this study to find a

solution to one of the main street or road problems that we encounter daily. This study would

offer a way on how to put up an establishment or in particular, a parking space that would profit

well, be beneficial to the public, and of course, provide customers with the most efficient, high

quality service.

1.02 Review of Related Literature

Luxurious life includes having your own car. Nowadays, people tend to buy cars because

they think that it is easier to bring them to places without experiencing a disastrous moment in

riding public transportations. According to the statistics provided by Land Transportation Office

(LTO), as of 2018, there is an increase of 1.2 million or 11.4 percent of the last year’s registered

motor vehicles which is totalling 11.6 million motor vehicles.

This is where parking issues come in. As the times go by, people continue purchasing

their own cars that have affected the country’s parking system. It affects the system to the point

that acquiring parking spots becomes an agonizing event. There are two main types of parking

system in the Philippines consisting Conventional and Automated Car Parking System.

Conventional Car Parking System is the system that is mostly used in the country since it

is already in place on the time of the invention of cars. This system is mostly in the form of large

parking lots such as the parking lots located in malls and tall buildings. A benefit of this system

is that the power supply is not much needed since lighting is the only energy requirement and

power failures would not interrupt their operations.

 Automated Car Parking System (APS) is where vehicles are moved from the entrance to

the available parking space through mechanical system. Robotic equipments are used like robotic

arms and lifts to put cars on top of each other. This system has been made because of the lack of

lands to make conventional car parks and needs for parking spaces have increased. This system

is not broadly used in the country. Its best advantage is that this system is space-efficient where

cars are stacked together.

Because of the increase in motor vehicles that travel regularly in the road, demands have

increased on parking establishments.

In Wikipedia, parking is defined as an act of stopping and leaving a vehicle in an

unoccupied space. Parking space is a must have in every city to provide people enough spaces to

leave their cars in a secured place while they bond with their families and friends or while

working in their office without a parking garage.

Under the Republic Act No. 4136, parking is defined as “for the purposes of this Act,

shall mean that a motor vehicle is “parked” or “parking” if it has been brought to a stop on the

shoulder or proper edge of a highway, and remains inactive in that place or close thereto for an

appreciable period of time. A motor vehicle which properly stops merely to discharge a

passenger or to take in a waiting passenger, or to load or unload a small quantity of freight with

reasonable dispatch shall not be considered as “parked”, if the motor vehicle again moves away

without delay.”

Traffic and parking have given a great impact on human lives. Traffic became a problem

that must be solved since it affects people’s family relationships because of missing or being late

on family events. This is according to the majority of people. This problem affects the
performance of a worker or a student since there is a large population that travels to their

destinations. It also affects the time schedule of a person since traffic stops them to properly

utilize their time. It also affects their energy since they get stressed a lot during the time they are

stuck in traffic.

According to the survey conducted by the global firm Boston Consulting Group (BCG),

Metro Manila made the Philippines the 3 rd worst in traffic in Southeast Asia with an average of

66 minutes stuck in traffic. Great effects to the economic status of Metro Manila are caused by

the horrendous daily traffic situation in the city such as addition to the pollution, more fuel

expenditure and delays in the movement of goods.

Illegal Roadside Parking is one of the causes of traffic in the city together with saturated

demand, mixed traffic with pedestrians, public utility jeepneys (PUJs), loading and unloading

passengers at intersections and the unruly driving behaviour of motorists according to the

statistics reported by Metropolitan Manila Development Authority (MMDA) based on the

information they have received from the Local Government Units (LGUs) in Metro Manila.

Double Parking is also one of the causes of traffic. Double Parking is defined as

“standing or parking a vehicle on the roadway side of a vehicle already stopped, standing or

parked at the curb.” This kind of parking prevents the paralleled car from moving and it causes

traffic on areas that have small or single lane. It is also deemed to be illegal.

Illegally Parked Vehicle referred as, under MMDA Resolution No. 02-33, vehicles that

are parked in areas that are prohibited by the law and to those areas that are designated as NO

PARKING areas or zones. Prohibited areas are enumerated to indicate illegally parked vehicles

as follows:
 1) All National roads in Metro Manila.

A. In primary and secondary roads of cities and municipalities in Metro Manila:

a. Within six (6) meters of any intersection or curved lane;

b. Within four (4) meters of driveways or entrances to any fire station, hospital,

clinic and other similar establishment;

c. Within four (4) meters of fire hydrants;

d. On the roadside of any legally parked vehicle;

e. On pedestrian crosswalks;

f. In front of any authorized driveway;

g. On the sidewalks, paths and alleys not intended for parking;

h. At the foot or near bridges;

i. At any place where official signs have been erected prohibiting parking and/or

declared NO PARKING ZONE by the MMDA;

j. Other areas duly declared as “NO PARKING ZONE” provided by law or

ordinances.

Due to these illegally parked vehicles, streets have been blocked, pedestrians cannot walk

freely and commuters have to wait for the vehicles in the middle of the streets. One of the

solutions that the authorities have come up is to file a bill that requires a prospective buyer of car

to own their own garage to be able to buy a vehicle. This bill emphasizes that these parked

vehicles on the streets have a great contribution to traffic congestion. This bill is authored by

Senator Win Gatchalian that is also known as the Proof-of-Parking Space Act after it has been

supported by the different civil society and government representatives. Under this act, an

affidavit that confirms that they have acquired a parking space either through purchase or lease
must be executed first by the individuals and businesses within Metro Manila to be allowed to

buy their own vehicles.

1.03 Statement of the Problem

This feasibility study aims to settle the bounds of the different aspects of establishing a

parking space business.

1.03.01 Market Aspect

1. What is the market potential of the business?

2. What are the possible marketing strategies to undertake?

3. How competitive is our service compared to other competitors?

1.03.02 Management Aspect

1. Will the business offer affordable rates to customers?

2. How many personnel are needed to help in the business?

3. What will be the procedures and requirements procurement of the workers?

1.03.03 Technical Aspect

1. Where should be the location of the business?

2. What are the appropriate equipments, supplies, and tools needed?

3. What actions and strategies must the business undertake to increase income?

1.03.04 Financial Aspect

1. Will it be costly to establish the business?

2. To what extent is the business willing to spend for an expansion of their service line?

3. How can the business maintain its profitability?

1.03.05 Socio-economic Aspect

1. What will the business contribute to the economy?

2. How can the business help other entrepreneurs?

3. What is the effect of the business towards others of the same line?

1.03.06 Legal Aspect

1. What are the requirements needed in putting up this kind of business?

2. What are the proper ways of filing the legal requirements?

3. Which of the government agencies aid to establish the business?

1.04 Objective of the Study

The foremost prime of the study is to ascertain the feasibility and viability of providing a

parking space service in Paco, Manila.

1.04.01MARKETING ASPECT

1. To find out the potential of the business.

2. To set the most effective and efficient market strategy for the business.

3. To determine the competitiveness of the service offered by the business compared

to other competitors.

MANAGEMENT ASPECT

1. To assess the service rate’s affordability among various customers.

2. To be able to know the ideal numbers of personnel needed in the business.

3. To set an agreeable requirement and procedure in the procurement of workers.

TECHNICAL ASPECT

1. To have a suitable location for the business.

2. To identify the appropriate equipments, supplies, and tools needed.

3. To come up with different ideas and strategies to increasing income.

FINANCIAL ASPECT

1. To know what will be the entire cost of establishing the business.

2. To assess the cost of expanding the business’ line of services.

3. To come up with effective and efficient method with regards to maintaining the

business’ profitability.

SOCIO-ECONOMIC ASPECT

1. To understand the business’ potential contribution to the government.

2. To recognize the capability of the business to extend help to other entrepreneurs.

3. To know if the business has any effects to its competitors.

LEGAL ASPECT

1. To fulfil the requirements needed to start the business.

2. To find out the correct ways of filing the requirements of the business.

3. To identify which among the government agencies corresponds to the fulfilment

of the business requirements.

1.03.02 Significance of Study

 This study is undertaken to find out the feasibility and efficiency of having

parking space as a business. This would benefit aspiring entrepreneurs by providing them

insights about how such business would certainly be profitable. This is also for existing

parking space service providers, for them to acquire new strategies to make their

businesses more operative.

This study would also be a helpful guide for students who want to conduct

research about such matter. This would provide possible methods, research processes,

and factors they would have to consider when conducting the same study. This would

also benefit thesis advisers and professors. Through this, they may be able to be more

specific in guiding their students that are conducting a study with the same nature.

Lastly, this would also be beneficial to the residents since there may be a chance

to avoid double parked cars that are blocking the streets, car vandal and carnapping upon

proving the feasibility of this project.

1.03.03 Research Methodology

Descriptive or Statistical research is a way to determine, describe or identify what

is. It is defined as a blueprint of a plan that is created to answer the research questions.

Descriptive research is a method that describes the characteristics of the population or

subject that is being studied. This methodology focuses more on the “what” of the

research subject rather than the “why” of the research subject.

This type of research describes the nature of a demographic segment without

focusing on “why” a certain phenomenon occurs. In other words, it describes the subject

of the research, without covering “why” it happens. Though it does not fit into the
definition of either quantitative or qualitative research methodologies, a descriptive

research design uses a wide variety of the two methods to investigate one or more

variables. The term descriptive research refers to the type of research question, design,

and data analysis that will be applied to a given topic.

The distinctive characteristics of a Descriptive Research are:

1. Quantitative research: Descriptive research is a quantitative research method

that attempts to collect quantifiable information to be used for statistical

analysis of the population sample. It is an popular market research tool that

allows to collect and describe the nature of the demographic segment.

2. Uncontrolled variables: In descriptive research, none of the variables are

influenced in any way. This uses observational methods to conduct the

research. Hence, the nature of the variables or their behavior is not in the

hands of the researcher.

3. Cross-sectional studies: Descriptive research is generally a cross-sectional

study where different sections belonging to the same group are studied.

4. Basis for further research: The data collected and analyzed from descriptive

research can then be further researched using different research techniques.

The data also can help point towards the types of research methods are to be

used for the subsequent research.

The purpose of Descriptive research is to describe, explain and validate the

hypothesis and objective of the proponents. The main methods of this research are the

following:
 1. Surveys

Survey research allows proponents to gather large volumes of data to be

analyzed for frequencies, averages and patterns. Other common uses of surveys

include:

 Describing the demographics of a country or region

 Gauging public opinion on political and social topics

 Evaluating satisfaction with a company’s products or an organization’s services

2. Observations

Observations allow proponents to gather data on behaviours and phenomena

without relying on the honesty and accuracy of respondents. This is often used by

psychological, social and market proponents to understand how people act in real-life

situations.

3. Case studies

A case study is used to describe the characteristics of a specific subject. This

allows proponents to gather detailed data to identify the characteristics of a narrowly

defined subject.

Case studies focus on unusual or interesting cases that challenge assumptions, add

complexity, or reveal something new about a research problem.

1.03.04 Scope and Limitations

 This study that is conducted on the first semester of this school year, 2019 – 2020

examines the feasibility of establishing a parking space business in Asilo de San Vicente

de Paul, 1148 United Nations Ave, Paco, Manila, 1500 Metro Manila. The data collection

is conducted to the residents of nearby barangays covering barangays 662, 671, 672, 673

and 674. One hundred (100) residents are selected through random sampling, and the

eighty-three (83) who respond affirmative represents the population. An initial

environmental examination is done through the use of questionnaires distributed among

the selected population, serving as a survey and reference data. Through this the

proponents will be able to determine the market feasibility and profitability of setting up

a parking space in Paco, Manila.

1.03.05 Sources of Data

Information significantly used in this study has been gathered through the use of

both primary and secondary sources.

Primary data is directly collected through the use of survey questionnaires. This

is an effective and easier method to asses our target market and to find out their insights

on the project we are conducting a feasibility study for. Assessment is done through

summarizing the respondents’ answers and combining such into a conclusion.

For the secondary data, the proponents have acquired journals, commercial

information, related studies, and other documents to gather such. Some secondary datas

were also collected through the use of internet. Many related articles focusing on our

field of study can be found in the web.

 The proponents have also gathered data from the school library by looking

through related journal articles, newspapers, magazines, and other reference books.

1.03.06 Random Sampling Technique

In statistics, Sampling is defined as the process of selection of a subset of

individuals from within a statistical population to estimate characteristics of the whole

population. The two major types of Sampling are Probability Sampling and Non-

probability Sampling.

Probability Sampling covers Random Sampling, Stratified Random Sampling,

Systematic Random Sampling, Cluster Random Sampling, and Multi-stage Sampling. On

the other hand, Non-probability Sampling covers Purposive Sampling, Convenience

Sampling, Snow-ball Sampling, and Quota Sampling.

In this feasibility study, the proponents used a random sampling technique to

determine which sub-population in the covered area has the highest percentage of

population and sample size. These acquired data will serve as the basis in finding out

which part of Paco, Manila “Otoguard Parking Hub” will most likely to prosper.

Table 1. Population and Sample

Barangay Frequency Percentage Sample

662 2891 25% 25
671 1169 10% 10
672 3237 28% 28
673 2605 23% 23
674 1616 14% 14
11518 100% 100
 The combined population of Asilo de San Vicente’s neighboring barangays

(barangay 662, 671, 672, 673, and 674) is eleven thousand five hundred eighteen

(11518). Barangay 671 has the smallest population, totalling to one thousand one hundred

sixty-nine (1169) and also the smallest sample size, totalling to ten (10). Barangay 662

has the largest population, totalling to two thousand eight hundred ninety-one (2891) and

also the largest sample size, totalling to twenty-five (25). We have a total sample size of

one hundred (100).

1.03.07 Statistical Technique

The proponents conducted this feasibility study by using the following formulas:

Sample Size

The proponents provided a number of 100 respondents as a sample size to

represent the population. It is allocated by using the proportionate stratification.

Strata sample sizes are computed using the following equationL

Nh
n h= xn
N

Where: n ¿ sample size

n h=¿ sample size for stratum

N h=¿ population size for stratum

N ¿ population size
Gross Market Acceptability Rate

x
GMAR=
n

Where: x = number of respondent’s willing to buy the

product/service

n = sample size

Projected Demand

PD = (n) x (% of willingness) x (no. of days in a week)* x (no. of weeks in a

year)**

Where: PD = projected demand

n = total sample size

% of willingness = willingness to avail

*No. of days in a week that willing to avail

*No. of weeks in a year that willing to avail

Projected Supply

PS = (Supply of the competitor) x (total no. of days in a week) x (total no. of

weeks in a year)

Where: PS = projected supply

Projected Sales
 PSales = (Average price) x (No. of days willing to avail the service in a

year) x (No. of customers how often they are willing

avail)

Where: PS = projected supply

Demand and Supply Gap

GAP = PD – PS

Where: PD = projected demand

PS = projected supply

1.03.08 Definition of Key Terms

Vehicle A thing used for transporting people or goods, especially on

land, such as a car, truck, or cart.

Double-parking To park (a vehicle) alongside one that is already parked at

the side of the road.

Traffic Vehicles moving on a road or public highway.

Proponents Persons who advocate a theory, proposal, or project.

Entrepreneur A person who organizes and operates a business or

businesses, taking on greater than normal financial

risks in order to do so.

Car A road vehicle, typically with four wheels, powered by an

internal combustion engine and able to carry a small

number of people.
Carnapping The action of stealing a car.

Vandal A person who deliberately destroys or damages public or

private property.

Overcrowding The presence of more people or things in a space than is

comfortable, safe, or permissible.