Business performance of concessionaires in State Universities and Colleges in Cavite / by Jose Rafael C. Frias.

Thesis (BS Economics--Business Economics) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

FRIAS, JOSE RAFAEL C. Business Performance of Concessionaires in State Universities and Colleges in Cavite. Undergraduate Thesis. Bachelor of Science in Economics. Cavite State University, indang, Cavite. October 2015. Adviser: Ms. Thea Maries P. Perez.

The study was conducted to determine the business performance of concessionaires in state universities and colleges in Cavite. It aimed to determine the socio-economic characteristics of the concessionaires; their business characteristics; their marketing practices; the profitability level of their business; the relationships between the profitability of the concessionaires and selected socio-economic characteristics, business characteristics, and marketing practices; and finally, the problems encountered by the concessionaires. The study was conducted in all state universities and colleges in Cavite. Nine state universities and colleges were known to have concessionaires operating inside. A total of 91 concessionaires were identified, but only 54 were included in the study. Participants that were not included were either inactive, replaced by another concessionaire, closed down, refused to be interviewed or did not answer the necessary questions for the study. The age of the participants ranged from 21 to 67 years old with an average of 41 years. Most of the participants were female, married, and were college graduates. They had an average of five household size and had other source of income. Results revealed that majority (93%) of the participants were sole owners of their business and offered food service. Their capital ranged from P2,000 up to P500,000 with an average of P61,314.81. The concessionaires were operating their business for 6 months up to 15 years with an average of 41 months, or 3 years and 5 months. In addition, majority of the concessionaires (77%) had an estimate of 81 customers a day, while 63 percent of the concessionaires did not keep journal or records of their business.

Their hired workers ranged from 1 to 10 workers with an average of three workers. Business operation was held from 6 to 15 hours a day with an average of 11 hours of per day and was open during weekdays. The common pricing strategy used by the concessionaires was mark-up pricing (52%), while the most common promotion used was giving price discounts on the products/services offered (54%). The concessionaires offering food service had an average monthly income of P37,723.49, while the general merchandise-concessionaires had an average monthly income of P11,876.67. Meanwhile, printing-service concessionaires had P 12,205 average income per month, while gym service concessionaire was found to have an average monthly income of —P17,660, because business operation was held for less than a year which affected the income. The concessionaires had an average gross profit margin (GPM) of 54.06 percent, while the operating profit margin (OPM) had an average of 32.57 percent. Profitability level was computed using OPM with majority of the participants on the average level. Selected variables were found to have weak relationship with the profitability of the concessionaires. This indicates that changes in the variable do not greatly affect the profitability of the concessionaire. Lastly, it was found out that concessionaires encountered problems which include competition, high rent expense, and lack of equipment.

Submitted to the University Library 08/04/2020 T-6020