Final Strama Coltrans

Colegio de San Juan de Letran 1 1
COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY
Executive Summary:
Columbia Transport (also known as Coltrans Cargo Philippines), was organized in
1986. It stands at the forefront of the freight forwarding and customs brokerage industry.
Coltrans Cargo offers total logistics services to importers and exporters of various products
with emphasis on quality through excellence consistent with the highest professional
standards. Coltrans is a part of the R. Joseph Holdings Group. Our sister companies include,
Philippine Wine Merchants with 645 outlets nationwide, importing 1800 wines in 14
countries. Ralph’s Wine & Spirit, the Wine Museum Hotel & Resto, Food and Beverage,
Robert& Deedee Publishing Co., Dee’s Gourmet Popcorn.
Product/Service - Coltrans Cargo offer an outstanding range of Logistics
Services, having different divisions and varieties of service to serve all customer segments
like;
 AIR FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING
 EXHIBITION AND EVENTS LOGISTICS
 PROJECT CARGO
 SEA FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING
 OFFICE AND HOUSEHOLD REMOVALS
 PACKING AND CRATING
 CUSTOMS CLEARANCE
 SELF-STORAGE FACILITY
 ROAD TRANSPORT
The current revenue is the amount of money that a company actually receives during a
specific period. The total revenue for 2017 is Php 43,971,386. For the year 2016, Coltrans has
revenue of Php 54,004,642. The company also acquired a Php 39,533,027 for the year 2015.
This research paper comes up with the reasoning to give the all over performances of Coltrans
Cargo in order for the company to maintain and enhance the operational activities.
The researchers had come up with strategic and financial objectives and directions for
Coltrans such as:
 To maximize and utilize Coltrans’s fixed assets by investing more on the expansion of
land purchasing new modernized vehicles, tools and equipments for efficient productivity.
 To strengthen the profitability of Coltrans Cargo in the succeeding years which will
yield a higher amount of return
 To increase the revenue and profit by increasing promotion
 To double Coltrans’s market share in the next five years
 To increasingly participate maritime activities, and continue to explore opportunity for
product development to ensure steady growth of the company.
 To build customer loyalty and develop a strong brand image
The recommended strategies complete with supporting details integrated in this paper can be
considered by Coltrans Cargo. The researchers recommend the specific strategies are:
 Market Penetration can help the company to generate profits by penetrate the market
through promotional activities, promo fares and online freight booking to create customers
awareness.
 Product Development provides different type of services to maximize the resources
by purchasing machineries and equipments that will increase productivity of Coltrans Cargo.
 Market Development indicates efficiently and effectiveness of new services by
expanding their resources to reach more target market.
Overall, the researchers conclude that Coltrans Cargo has an effective performance in
the industry and has a potential to develop its market and be more competitive in the global
perspective. By doing so, the researchers conclude that Coltrans Cargo must also apply and
passed the certifications for a quality standard such as the ISO 9001 for a more globally
competitive company and strengthen their brand image.

CHAPTER I
INTRODUCTION
History of Coltrans(1986 – 2001)
1986 - Columbia Transport, Inc. located in Makati was established with three staff to
specialize in exports to Rotterdam.
1987 - Expanded other markets in Europe and Asia and secured non-exclusive agency
agreements abroad to service the accounts.
1988 - Increased export volume in Europe; was appointed as an IATA agent.
1989 - Transferred to its new office in Coltrans Compound; accredited as forwarder in all
Philippine Economic Zone Authority.
1990 - Established Coltrans Branch in Cebu in a joint venture with Opascor. Appointed by
Jet Air Services (JAS) of Italy with 108 offices worldwide.
1991 - Streamlined operations and reset objectives.
1992 - Participated in handling exhibitions; established Subic Bay Freeport-Coltrans Branch.
1993 - Expanded other markets in Europe and Asia and secured non-exclusive agency
agreements abroad to service the accounts.
1994 - Increased capitalization to meet expansion requirements.
1995 - Established Coltrans Exhibits, Inc. and JAS Coltrans Cebu; developed project cargo.
1996 - Registered Clark Office; established JAS-Southernship Davao; secured Heavylift
projects.
1997 - Opened office in Bataan and Cavite.
1998 - Established Coltrans Moving and Trucking Services.
1999 - Purchased property for second warehouse and expanded the Head Office are; increased
activities in exhibitions.
2000 - Expanded operations in Subic, Laguna and Cavite for electronics and communications
industry; appointed agent by Vietnam Airlines for passenger and cargo; established Coltrans
Batangas Office to handle heavylift project and general cargo.
MANAGEMENT CULTURE
Many companies describe themselves as leaders in providing quality services.
However, in reality very few companies deserve this designation. To merit it requires a
combination of innovation and impeccable service where every customer’s need must be
anticipated and every requirement provided.
At Coltrans, they depend on their people who are their asset in delivering their
services. Working in synergy with their co-workers, superiors and clients, the dynamic
Coltrans individuals has embraced the values of honesty, integrity, hardwork and respect for
God which become their personal credo and commitment to the company and the
communities they serves.

As such, adherence to these principles has gotten us where we are today, and it is through
their continued application in our daily lives that we intend to guide Coltrans and our clients
in the future.
QUALITY POLICY
Coltrans, is committed to provide Service Excellence at most reasonable cost to our
customers.
Coltrans’ vast resources of management and international network provides distinctive
capability to offer total logistics services
We are dedicated to nurture and maintain long-term beneficial relationship with our people,
clients, partners and the communities we serve as we strive for continuous improvement.
ORGANIZATIONAL STRUCTURE
Nature of Business
Columbia Transport (also known as Coltrans Cargo Philippines), was organized in
1986. It stands at the forefront of the freight forwarding and customs brokerage industry.
Coltrans has the vision, mission, the strategy and the solution to your logistics requirements.
Starting out with 3 employees, Coltrans today has 45 regular employees. Its corporate name is
always preceded by the company’s reputation for developing innovative services designed to
satisfy the different logistic requirements of the business community.
Coltrans Cargo offers total logistics services to importers and exporters of various
products with emphasis on quality through excellence consistent with the highest professional
standards. Coltrans, is a part of the R. Joseph Holdings Group. Our sister companies include,
Philippine Wine Merchants with 645 outlets nationwide, importing 1800 wines in 14
countries. Ralph’s Wine &Spirit,The Wine Museum Hotel & Resto, Food and
Beverage,Robert& Deedee Publishing Co., Dee’s Gourmet Popcorn.
Services
Coltrans Cargo offers an outstanding range of Logistics Services:
1. AIR FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING

Airfreight, that is the system of transporting cargo by air, allows for decreased
shipping time for urgent or perishable shipments. You have to consider the transit time
involved depending on the country of origin, the nearest airport from your supplier, the
airline’s packing requirements, documentary requirements and if the dimension of the cargo
will fit into the requirement of the airline among others. Your airfreight forwarder will also
guide you through this process.
2. SEA FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING
Sea freight, that is the system of transporting cargo by sea, is suitable for large articles
or bulk cargo.
Sea freight is computed by the container load and has two kinds:
 Less container load or LCL is a shipment that does not fill a standard container or does
not meet the FCL minimum. LCL shipments are usually combined with other shipments from
other shippers/suppliers to fill a container and lessen the cost of shipping.
 Full container load or FCL fills a given container either by bulk or maximum weight.
FCL Shipments are available in 20-foot (max of 33cbm), 40-foot (max. 67.3cbm) general
purpose or standard container. Container specifications for maximum volume or weight

allowed sometimes vary per shipping line. These containers are subject to considerably less
handling as they are loaded in full.
3. CUSTOM CLEARANCE
Customs clearance work involves preparation and submission of documentations
required to facilitate export or imports into the country, representing client during customs
examination, assessment, payment of duty and co taking delivery of cargo from customs after
clearance along with documents.
4. EXHIBITION AND EVENTS LOGISTICS
An exhibition is an organized presentation and display of a selection of items. In
practice, exhibitions usually occur within museums, galleries and exhibition halls, and
World's fairs. It include many things such as art in both major museums and smaller galleries,
interpretive exhibitions, natural history museums and history museums, and also varieties
such as more commercially focused exhibitions and trade fairs.
5. SELF STORAGE FACILITY
Self storage (self-service storage), and also known as "mini storage" is an industry in
which storage space (such as rooms, lockers, containers, and/or outdoor space), also known as
"storage units" is rented to tenants, usually on a short-term basis (often month-to-month).
Self-storage tenants include businesses and individuals.
The rented spaces are secured by the tenant's own lock and key. Unlike in a
warehouse, self-storage facility employees do not have casual access to the contents of the
space (and, thus, the facility is generally not liable for theft). A self-storage facility does not
take possession or control of the contents of the space unless a lien is imposed for non-
payment of rent, or if the unit is not locked the facility may lock the unit until the tenant
provides his/her own lock.
6. PROJECT CARGO
Project Cargo / Heavy lift projects requires special expertise, care and detailing. We
have built a formidable reputation in Project Cargo Logistics and heavy lift shipments with
our dedicated operations team who have a thorough understanding of handling cargo’s with
ports, customs and transport agencies.
7. PACKING AND CRATING
The right choice of appropriate packaging material is very essential. The shipment
should be properly packed using the appropriate packaging material to ensure that cargo can
withstand all potential hazards during transit. The packaging should provide protection from
the dynamics of the mode of transport and its environment. Discuss packaging with your
supplier to ensure all items are properly wrapped, taped, boxed, and crated. No loose or
unwrapped items will be accepted by the freight forwarder because of the risk of loss and
damage in transit.
8. ROAD TRANSPORT
Road Transport/Trucking means transportation of goods and personnel from one place
to the other on roads. Road is a route between two destinations, which has been either paved
or worked on to enable transportation by way of motorised and non-motorised carriages.
There are many advantages of road transport in comparison to other means of transport. The
investment required in road transport is very less compared to other modes of transport such
as railways and air transport.
Current Revenue
The current revenue is the amount of money that a company actually receives during a
specific period. The total revenue for 2017 is Php 43,971,386. For the year 2016, Coltrans has
revenue of Php 54,004,642. The company also acquired a Php 39,533,027 for the year 2015.
Current Size
Coltrans Cargo accumulated a total asset of 23,342,444. It defined as anything that a
business owns, has value, and can be converted to cash. Coltrans Cargo generated total assets
of Php 23,342,444 for the year 2017. A Php 29,043,077 and Php 25,518,859 total assets for
the years 2016 and 2015 respectively.
Current Profit
Coltrans Cargo’s net income and retained earnings for 2017 is Php 3,043,684. For the
year 2016, Coltrans Cargo has total earnings of Php 5,802,679. The company also acquired
total earnings of Php 3,157,588 for the year 2015.
Major Markets Served
Coltrans Cargo offers total logistics services to importers and exporters of various
products. Its corporate name is always preceded by the company’s reputation for developing
innovative services designed to satisfy different logistic requirements of the business
community.
Identified in the picture above is the list of companies that Coltrans captured
throughout its operating years. Observed in the given picture is a diversified industries
captured by Coltrans ensuing a quality service and resulting to gain the loyalty of its clients.
Other relevant basic information
Coltrans Cargo has been servicing the Philippine exhibitions industry since
1993. They are an active member of the Philippine Association for Conventions Exhibitions
and Suppliers (PACEOS) and Ms. Deedee Ledonio is a current Board of Trustees of
PACEOS. They have handled close to 1000 exhibitions both international and local around
the Philippines as Official Forwarder, Broker and On-site Handler. It is safe to say that
Coltrans Cargo is the No. 1 Exhibition Cargo handler in the Philippines. Columbia Transport
Inc. (Coltrans Cargo) in Pasay City, Philippines joins AiO’s Commercial, Projects, Removals
and Exhibitions divisions.
The AiO concept is all about leveraging strengths as a group.
Every logistics company in the world has its own strong points which depend upon the
professional capabilities of their people, the needs of their customers and the aims and goals
of the company. That has meant that some companies might handle only one type of cargo
whereas other companies are experienced in more than one type of cargo. Until now this has
meant that most independent freight forwarders need to join a few networks to cover each of
their areas of expertise.
When a company joins AiO they have the opportunity to enroll in various specialties
including commercial cargo, project cargo, international removals, perishables and exhibition
freight. From these specialties they form smaller groups specifically concentrated around that
exact expertise. As such they will find that you have qualified companies for all your cargo all
over the world, in one network. And they are all covered under the same financial protection.
When you meet these companies at annual general meeting you will only meet companies
who are working in the type cargo that is of interest to your company so you can focus like a
laser beam on the markets that will make your company grow and become more profitable.
It is plain to see that AiO’s revolutionary approach creates efficiencies for independent
international logistics companies that did not exist before.They mean to open an entire world
of freight and logistics opportunities to your company in a way that will make your customers
happy, in a way that will feed your bottom line and in a way that will keep sales growing in
your pipeline.
ACCREDITATIONS & AFFILIATIONS
ACCREDITATIONS
AFFILIATIONS
CHAPTER II
RESEARCH DESIGN AND METHODOLOGY
This research paper is going to discuss the aspects of shipping market, used this paper
to find the opportunities based on the competitive advantage and analyze the framework and
strategy in order for the researchers know about the conditions of its market.
This research paper comes up with the reasoning to give the all over performances of
Coltrans Cargo in order for the company to maintain and enhance the operational activities.
This research paper is design in creating paper for Coltrans Cargo. To be able to come
up with the paper, the researchers have analyzed and evaluated data about the Coltrans Cargo.
Relevant website and interviews became the primary sources of information of this research
paper.
The researchers used strategic analysis to provide the appropriate tools in the research.
The technique to understand the environmental factors like economic, political, socio-cultural,
technological, and environmental in which the business operates. To identify forces that can
affect to the competition among companies in the industry.
Data and information sources
The data used in this research came from various internet sources, news articles, blogs
and different logistic sites.Some of the sites visited are as follows: Philippine Companies, AiO
Logistics, Press Reader, Zoominfo, Cargo Management and Coltrans Cargo. These sites were
used as primary source of data to be used in this study.Most of the data used are from the site
of the company whose data is visible to the public.
Manner of Obtaining Information and Methodologies used
The researchers obtained information through personal interviews to evaluate and
address strategic management issues that are relevant in assessing the external and internal
factors of the company. First, the researchers made a request letter for a company visit
through the General Manager. The researchers set up an appointment - confirming the date
and time of visit according to the availability of the requested person. Then the interview
conducted.
Major Assumptions
The researcher’s main objective for this research is to help the company to strengthen
its operational activities to achieve its goal to be number the one when it comes to logistic
industry.
Since the purpose of this research is to give the organization, new strategies on how
they will improve their service and how they can get people through their different platforms;
the main end is having the organization to reach out to more people who will patronize their
service.
CHAPTER III
COMPARING MISSION AND VISION
In this chapter, the researchers had recognized the current vision and mission
statement of the chosen company and established their own strategies by evaluating,
commenting and recommending the company’s mission and vision. Identified in the current
mission and vision statement, the researchers used David Pearce’s framework about the eight
key concepts as their guidelines for evaluating the mission and vision of the company.
MISSION
To become a total logistic company. Profitable and growth oriented while
nurturingbeneficial relationship with our clients, people, partners and the communities we
serve.
VISION
We commit to provide service excellence at the most reasonable cost that will exceed
customer’s satisfaction.
Mission & Vision Evaluation
Table 1 – Mission Evaluation
Criteria Yes / No Evaluation
Customers Yes “beneficial relationship with
Our clients, people, partners
And the community we serve”

Products and Services No
Market No
Concern for Survival, Growth and Yes “Profitable and growth
Profitability Oriented..”
Philosophy No
Yes “to become a total logistic

Self-Concept
Company..”
No
Concern for Public Image
Table 2- Vision Evaluation
Criteria Yes / No Evaluation
Yes “that will exceed customer’s

Customers
satisfaction”
Yes “to provide excellence

Products and Services
service”
No
Market
Concern for Survival, Growth and No

Profitability
Philosophy No
Self-Concept No
Concern for Public Image No

Comments and Recommendations
A. Recommended Mission
The researchers endorse the elements needed to recommend mission statement to
Coltrans Cargo. The formulation are based on Mission Statement Analysis with eight
strategies integrate with the components of Customers, Services, Markets, Survival, growth,
and profitability, Philosophy, Self-concept, Concern for public image, and Concern for
employees.
Recommended Mission for Coltrans Cargo:
Our business is to provide outstanding range of logistics service at the most
reasonable cost that will exceed customer satisfaction.
We believe in the spirit of teamwork. Together with our clients, we work
cohesively towards one common goal for our mutual benefit.
We do our best to being a responsive corporate citizen contributing to the
enhancement of well being of people in the community. We believe in being one with the
environment.
We are dedicated to build and maintain long-term sustainable relationships with
our clients, community, and our people.
B. Recommended Vision
The vision is still needed to be change because it does not describe what company will
be in the future. The researchers recommend new vision for the company in order to point out
what company they would like to be in the future.
Recommended Vision statement for Coltrans Cargo:
“Our vision is to be a leading logistic company to provide excellence service at the most
reasonable cost that will exceed customer’s satisfaction. We aim the highest quality
transport service by establishing standard of hard work of employees.”
Recommendation on how the Mission & Vision will be communicated to all Stakeholders
Mission and Vision will provide a vehicle for communicating an
organization's purpose and values to all key stakeholders. These statements would be widely
circulated and discussed often to the employees so that their meaning is widely understood,
shared, and internalized. The better employees understand an organization’s purpose, through
its mission and vision, the better able they will be to understand the strategy and its
implementation. Mission and Vision would create a target for strategy development. That is,
one of a good strategy is how well it helps the firm achieve its Goals and Objectives.
CHAPTER IV
EXTERNAL ANALYSIS
Implied in this chapter are the forces the researchers assessed through various macro
and micro environmental factors associated in the apparel industry. Various issues and factors
the researchers had analyzed hitch are all significant in capturing information about the firm’s
external and internal environment in terms of evaluating opportunities and threats to be aware
of in doing product development, business or strategy planning. Visible in the following pages
are the different methods and concepts to evaluate the firm’s external and internal forces such
as PESTEL Analysis, Industry and Competitor Analysis.
A. General Statement
PESTLE ANALYSIS
Political Statement
One of the goals of the current administration of the Philippines is to achieve the
“golden age of infrastructure.” To fulfill this vision, President Rodrigo Duterte plans to
increase the Philippines’ infrastructure-to-GDP ratio to 7.4 percent, potentially investing a
total amount of P8 trillion to P9 trillion by 2022.
In addition, National Economic and Development Authority (NEDA) Undersecretary Rolando
G. Tungpalan said that the current administration has also committed to spearheading farm-to-
market roads and railway projects that are some of the foremost techniques to “operationalize”
access to merchandise and various services. This plan is highly beneficial for businesses and
for every Filipino, especially the daily commuters.

 Growth Rate Report of the Logistics Industry
Since the government’s goal involves the improvement of ports, bridges, airport
projects, railways and warehouse facilities in the country, it is safe to say that the
government’s project is in favor to the report released by Transport Intelligence (Ti) in 2015.
Ti is a trusted research and analysis company that focuses on the global logistics industry. The
report said that the Philippines could become a key market for local and international
companies that offer logistics and forwarding-related services in the coming years.
Given the fact that the Philippines is one of the fastest-growing economies globally,
the research company said that the annual growth rate of the logistics industry could grow as
high as 16 percent in 2020 from its growth rate in 2013. They emphasized that this would be
possible if the government would embrace policies that address the country’s current logistics
performance index (LPI). The growth rate at the lower end of the report is only 9 percent.
 Logistics and Freight Companies in the Philippines
The government’s infrastructure goals made some logistics and freight companies in
the Philippines expectant of the favorable things to come. The potential improvements could
help them save additional operational costs on dry docking, transportation, and other negative
expenses caused by delays in service due to road congestion, port problems, and delivery
trucks that jam roads, and lack of carriers.
 Philippines Logistics Market
Philippines logistics market has evolved in recent years with the rising globalization
which is one of the key driving factors responsible for the growth of logistics market. The
strong economic growth in the country has driven the logistics sector thereby leading to an
increased demand of efficient distribution channels in the country. The growth of export and
import activities in the Philippines has significantly contributed to the growth of logistics
market. The key service offered by the logistics service providers in the Philippines included
the movement of documents, parcels, freight within a definite transit
time. Philippines logistics market is segmented by industry type and includes freight transport
by road, sea and air, storage and warehousing, and value added services. The logistics market
in the country was largely dominated by road freight forwarding industry in 2016. Freight
transport by road has been mainly utilized for domestic transport of goods and commodities
by various industry sectors in the Philippines.
Economic Focus
Logistics is defined as the integration of transport, warehousing, freight forwarding
and information services. Along with competitiveness of products and services, efficient
logistics services can significantly contribute to a country’s economy.
In the Philippines, transportation and logistics are considered main catalysts of
economic growth. The country’s transport system is intermodal in character, which includes
inter-island as well as intra-island mobility, and typically combines air, sea and road transport
modes.
PHILIPPINE GDP FOR YEAR 2018
The Philippine economy grew by 6.0 percent in the second quarter of 2018.
Manufacturing, Trade, and Construction were the main drivers of growth for the quarter.
Among the major economic sectors, Services recorded the fastest growth at 6.6
percent. Industry followed with a growth of 6.3 percent, and Agriculture with a growth of 0.2
percent.
Net Primary Income (NPI) posted a growth of 4.7 percent resulting in the 5.8
percent growth of Gross National Income (GNI). Both NPI and GNI recorded a growth of 6.6
percent in the same quarter of the previous year. With the country’s projected population
reaching 106.2 million in the second quarter of 2018, per capita GDP grew by 4.3
percent. Meanwhile, per capita GNI and per capita Household Final Consumption
Expenditure (HFCE) grew by 4.1 percent and 4.0 percent, respectively.
Growth in exports of goods eased to 2.9%, after consistent growth averaging 21.1% in
2017. Net exports therefore worsened during the quarter. Services increased a little bit in a
year 2018.
The Department of Trade and Industry (DTI) underscored the importance of having an
efficient logistics system. It noted on its Web site, “Effective logistics development is one of
the strategies that is seen to greatly facilitate trade and connectivity; contribute to the lowering
cost and clearance time of imports and exports; and ensure the smooth flow of commodities.
Once perceived to be stable and reliable, it would encourage market expansion and
improvement of the investors’ confidence in transporting goods and services.”
In the course of time, the increasing globalization, competition and trade require
greater movement of goods and services, which then necessitates the need for a more efficient
logistics system.
However, the Philippine logistics industry has been lagging behind its neighboring
countries. In a policy note published in March 2018 by the Philippine Institute for
Development Studies (PIDS) titled “Regulatory Challenges in the Philippine logistics
industry,” Research Consultant Jose L. Tongzon noted that the Philippines currently has the
highest logistics cost among the member-states of the Association of Southeast Asian Nations
(ASEAN) even trailing behind Vietnam, which is considered one of ASEAN’s transitional
economies.
While Philippine logistics market has still managed to grow as a result of the country’s
strong economic growth, growing outsourcing sector and rising globalization, according to the
report, it has remained fragmented and dominated by foreign transnational players.
In a separate report, DTI stated that the country’s logistical costs account for 24% to
53% of wholesale prices, while shipping and port handling costs cover 8% to 30%, depending
on the goods’ route, and roughly 5% of the retail price of goods.
Moreover, the Philippines ranked 71st out of 160 countries in the Logistics
Performance Index of World Bank. The international scorecard ranks countries based on a set
of criteria including efficiency of the clearance by border control agencies, including customs;
quality of trade and transport-related infrastructure; ease of arranging competitively priced
shipments; competence and quality of logistics services; ability to track and trace
consignments; and timeliness of shipments in reaching destination within the scheduled or
expected delivery time.

The report indicated that the country’s weak performance was attributed to its
inadequate and relatively poor quality of infrastructure, inefficient customs, poor competency
of logistics providers, along with their limited ability to track and trace shipments.
“One factor behind the poor performance and low international competitiveness of the
Philippine logistics sector is its restrictive and incoherent regulatory framework, as can be
seen in the case of the Philippine ports,” the PIDS report stated. “The efficiency of the ports
matters because their costs account for a large part of maritime transport costs, which
providers and shippers usually shoulder by way of increased shipping charges. Delays due to
port inefficiency can also lead to higher inventory costs and even loss of business
opportunities.”
As recommendation for the logistics industry, the policy note shared that apart from
the improvements in transport infrastructure, regulatory reforms are required to address the
Philippine ports’ inefficiency and lack of international competitiveness.
“Currently, the Philippine Port Authority functions as both regulator and operator of
the relevant logistics nodes in the supply chain. This not only stifles inter-port competition
within the country but could also lead to higher costs and inefficiency as explained earlier. To
improve the situation, this study recommends the establishment of one separate entity in
charge solely of port regulation,” the report cited as one of its recommended reforms.
Social, Cultural and Demographic focus
 Social
There are approximately 2.55 billion social network users worldwide, and more than
half of those users are registered on Facebook. Social media changed the way businesses
interact with customers. It has closed the gap between businesses and customers, which allows
them to communicate in real-time. Despite all the possible benefits from utilising such
powerful channel, almost 90 percent of the companies are not using social media to facilitate
better communication and collaboration with customers and business partners.
In logistics and freight forwarding, social media is used as a tool for business only.
There is no socialization with the customers. Companies are unaware of the value of social
media comments about products, services or even the system. These tools pose helpful
information for the freight forwarder and its management. The challenge, however, lies in the
way companies handle the reviews and gather the information together to form valuable data.
Below are a few benefits that logistics and freight transportation will gain in using social
media:
 Operators can easily update shipments schedule thus, there is an increase in the
tracking and visibility of your supply chain. The information can be received in real-time.
 Gather valuable information from social media on freight transportation unforeseen
issues such as accidents and road closures that affect the delivery schedule. This information
can be used to re-route the deliveries.
 Be informed about weather conditions and other natural aspects that might affect
your shipment or deliveries.
 Gain knowledge about the latest trends and other important insights from customers
and business leaders.

 Share or gain data for risk identification, and reveal the dangers in your supply
chain.
 Search and collect innovative ideas from different points of view to further improve
your business offers.
 Find new employees, customers, business partners and opportunities.
 Enhance your relationship with your business partners and your customers. Social
media provides your company reviews and feedback from customers and you can
immediately respond to them.
Social media can be the most efficient tool in gathering valuable information for
logistics and supply chain companies. Not many companies use social media to build and
strengthen relationships among its logistics partners. Social media is not only for the sole
purpose of portraying your brand. It can also be used to connect with other people in the
community.
 Cultural
The Philippines, situated just above the equator in insular Southeast Asia, is an
archipelago of 7,107 islands. The country is one of the top regions in the world that are
characterized by high biodiversity. It is diverse in terms of ecosystems, genetic resources,
species of flora and fauna, and culture. Because communities have been separated from one
another by sea and mountain, various ethnicities, languages, and dialect have emerged in
different parts of the country (Castro, N., 2011). The cultural landscape has an effect on
Coltrans Cargo because the country is surrounded by different types of nature.

The Philippine Government has focused on the build, build, build program and thus it
has affected our culture as a whole, under which many projects will start construction this
year and it’s welcomed by the logistics industry. If the infrastructure program moves forward
and brings about concrete and tangible results, the impact on the shipping sector will be huge.
 Demographic Focus
The growing population in the country will change the demographic focus of the
company. The era of constrained labor supply is just beginning, and the decreasing share of
populations that are in the working age cohort will keep human capital a front-burner issue for
goods producers for decades.
In “An Aging, Urbanizing World,” senior economist Cliff Waldman wrote that global
population growth has been slowing dramatically since the mid-1960s. In the latter half of the
1960s, average growth was 2.07% per year. The rate decelerated over the decades to an
estimated 1.15% per year for the 2010-2015 periods and is projected to fall below 1% after
2020.
“Population shifts are being felt very much in the present and are having a direct
impact on the slow world rebound,” Waldman said in a recent interview. “Manufacturers must
understand how dramatic demographic changes intersect with economic activity, and the
resulting reshaping of the business climate in ways that would have been unimaginable just a
decade ago.”
In an effort to curb the labor shortage, Waldman encouraged companies to think of
incoming employees as a raw material rather than a finished product.

“They will not come with all the necessary skills to jump right in,” he said. “Instead,
you will need to form training programs in your company. Go into schools and tell kids
manufacturing is a good career. Not just once a year, but in the context of a real and consistent
relationship with educators. Your company has to become a classroom. It’s not going to be
easy but it will be increasingly necessary.”
Framing the global challenge to develop talent, Waldman said regional differences are
revealing. For instance, for the 2010-2015 periods, the average population growth in Africa
will be an estimated 2.46% compared with 0.81% in the United States and 0.08% in Europe.
“Philippines is becoming demographically advantaged, despite social and humanitarian
problems,” Waldman said. “With a younger population, Philippines can look forward to a
growing share in working cohort, in sharp contrast to rest of the world. Once it’s off the
ground economically, household formation will kick in, which has tremendous implications
for the consumption of goods. Philippines might slowly become a manufacturing continent,
and what an improvement that would be in the world.”
Technological Focus
Logistics technology provides enormous amounts of data that can be analyzed to
increase efficiencies, streamline processes, and offer an improved customer and provider
experience. While automation takes defined actions based on set processes, machine learning,
an artificial intelligence technology, takes data analytics and automation to a new level by
using data to predict patterns and adjust the initiation of actions accordingly.
Machine learning for our industry is in its infancy because there are so many granular
components involved in logistics, but experts predict that it will play a crucial role in
improving efficiency and speed.
The Uberization of the freight market is another emerging technology. Uber takes the
taxi concept and marries it with the idea of the sharing economy using a proprietary
algorithm, mobile phone app, GPS, and a non-asset based model. There is growing interest in
how the Uber concept might by applied in logistics, particularly in the last mile.
To leverage current technology with our organizational, customer, and business goals,
all four types of innovation; optimization, integration, machine learning, and Uberization can
overlap. Technology and its applications are continually changing and the effects on the
supply chain will likely intensify as we better understand how to harness this power.
In an increasingly real-time economy speed and timing are keys. It might sound obvious but
the consequences for supply chains, logistics and the transportation industry are huge.
Efficiency, optimization, speed and timing have always been crucial in logistics and
transportation. Today, amidst a range of accelerating evolutions and in an increasingly digital
environment where digital transformations are affecting the next revolution of industry,
known as Industry 4.0, it is even more so.
Another technology is developed by SISTEMAR, in design of propeller which is
expected to increase efficiency of the ship by 5% to 8%. This contracted and loaded tip (CLT)
propeller is an unconventional propeller which will reduce tip vortex, reduce cavitations,
improve maneuvering and will reduce emission by 5% to 8% compared to conventional
propellers. After the initial testing it has been found that new propeller has significantly
reduced vibrations onboard the ship, increased the efficiency and the propeller is causing low
induced pressure pulses (Enquiries, 2015).
The Technology Innovation leads the company to improving the services quality and
enhance over all performances of Coltans Cargo. Ship technology reduces pollution in sea and
help the marine ecosystems by innovate.
Environmental Forces
 Natural Disaster
Nowadays the environment is the most important external influence on Coltrans
Cargo. The Philippines is experiencing natural disaster, as it is surrounded by bodies of water
and is located along the Pacific Ocean’s “Ring of Fire” from typhoons to tsunamis to volcanic
eruptions to earthquakes. The Coltrans Cargo has a state of bad situation because it might
cause a big problem when the disaster hit the operational activities. This has severe
consequences to the company like delaying business activities/operations, lower the
productivity of employees and no customers.
 Legal factors
The laws of Philippines affects all businesses within the country, and this includes the
laws guiding taxation, payment of necessary bills and the law guiding the registration of
companies in charge of the registration of companies in the country. It cannot do business
comfortably or successfully in the Philippines without obeying first the rules and principles of
the country. For one to have his or her business legally registered in Philippines one would
have to register with the Department of Trade in Industry (DTI) and Bureau of Internal
Revenue (BIR), the cost of registering businesses is fixed, depending on the type of business
you are planning to register.
 Cargo Theft
Fraud is most commonly associated with misappropriation and theft. The distribution,
transportation, and logistics industry is definitely not protected against this type of crime
either. Cargo theft may occur not only in freight-forwarding and storage operations, but also
during transportation or in the process of loading and unloading. The risks of cargo theft have
been increased by extensive subcontracting and use of owner-drivers.
On the other hand, the industry is trying to reduce the risks of petty pilferage through sealed
containers and track and trace systems. Up to 73% of the companies operating in the
distribution, logistics, and transportation industry have been confronted with this type of fraud
in one form or another. As if cargo theft would not cause enough damage, it also includes a
diversity of other methods of diverting assets to private use. Cargo theft becomes one of the
most prevalent legal issues in this challenging industry, an issue that the laws of distribution
cannot protect operators from.
 Leaking Money
Improper controls can lead to revenue leakage. The distribution, transportation, and
logistics industry gives rise to a dynamic, fast growing, and ever-changing economic setting.
Focusing on entering new markets or making new acquisitions, companies often neglect the
implementation of an effective control system. This lack of control is an opportunity to
commit fraud. Revenue leakage is mainly possible for companies that do not connect
shipping, revenue recognition, and billing for all of their subsidiaries.

 Cooking the Books
The temptation to manipulate financial statements is a very real one in the distribution,
logistics, and transportation industry. Laws of distribution stipulate clearly the obligations of
operators as far as financial statements, yet the narrow margins make cooking the books more
tempting than ever. Perpetrators are driven not only by opportunity but also by motive. And in
this industry, the motive is very present. Most companies in all segments of the industry
operate on very narrow margins. Achieving profit targets and revenues becomes increasingly
more difficult, luring many people towards fraud.
In addition to these three most common legal issues, the distribution, transportation,
and logistics industry is also confronted with decentralized structures that lead to fraudulent
disbursements, failure to segregate cash receipt and cash application duties that can lead to
cash skimming, or commercial bribery and kickbacks. Industrial espionage can threaten
chances of winning major contracts, contingency services may not be documented and
provide the potential for abuse, and major capital expenditures may increase the likelihood of
bribery of public officials. All of these make the distribution, transportation, and logistics
industry a tough environment.

B. Industry and Competitor Analysis
B.1 Industry Analysis
1. Market size and Growth rate
Logistic 2015 2016 Growth 2016 2017 Growth
Companies rate rate
All NP NP NP
Transport
Network
Inc.
Infinity 4,160,740 4,191,416

.73% 4,191,416 4,455,990
5.93%
Logistics
Philippines
Co.
Coltrans 25,518,859 29,043,077 12.13% 29,043,07 23,342,444 -24.42%
Cargo
7
The table above shows the growth rate of All Transport Network Inc., Infinity
Logistics Philippines Co. and Coltrans Cargo. The All Transport Network Inc increased on
2014 with 28.26% and also increased 11.17% in a year of 2015. The Infinity Logistics
Philippines Co. increased on the year of 2016 with .73% and also increased 5.93% in a year of
2017 while Coltrans Cargo increased 12.13% in year 2016 and decreased of (24.42%) in year
2017.
2. Market share:
The information gathered about the Logistic Industry and to know the detailed
information about the status of its direct competitors of Coltrans Cargo to the market. The
information collected about the sales of its direct competitors are Infinity Logistics
Philippines Co. and All transport Inc.
Logistic Industry
15% Coltrans Cargo

28%
7% Infinilty Logistics Philippines
Co.
All Transport Inc
Others
50%
The figure above shows how market share is differentiating from each other Logistics
companies. The chart represents the percentage of Logistics companies in market. The market
sales of Coltrans Cargo got 15% sales, Infinity Logistics have 7%, and All Transport Inc have
28% while other Logistic companies have 50% (Sources:ColtransFinancial Report, Infinity
Logistics Financial Statement, and All Transport Inc. Financial Statement)
3. Market Mix
Generally, the marketing mix for companies is 4p - Product, Price, Place and
Promotion, but for freight forwarding or as a matter of fact for any service industry, a 7Ps mix
model is there, with additional people, process and physical evidence. Marketing mix strategy
plays a vital role in freight forwarding industry in order to create competitive advantage and
cost efficiency.
Already freight industry or logistic industry is in a disadvantage position, as per Porter
five forces, the industry has high threat of entry, huge competitive rivalry, medium level of
substitution risk, high bargaining power of buyer and low bargaining power of suppliers.
Therefore, effective marketing mix strategy needs to be in place to convert the disadvantage to
an advantageous position. The first four are;
Product/Service - Coltrans Cargo offer an outstanding range of Logistics Services,
having different divisions and varieties of service to serve all customer segments like;
 AIR FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING

 EXHIBITION AND EVENTS LOGISTICS
 PROJECT CARGO
 SEA FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING
 OFFICE AND HOUSEHOLD REMOVALS
 PACKING AND CRATING
 CUSTOMS CLEARANCE
 SELF-STORAGE FACILITY
 ROAD TRANSPORT
Price - having a pricing strategy for customer, it can be cost plus a fixed margin percentage
price or pricing in relation to competition, premium pricing or a mix of many other factors.
Rates, or what are commonly called as tariffs, were fixed by the government. To simplify the
task of setting rates for a large number of commodities rates were structured by commodity
class. Commodities were initially classified as Class A for processed goods or high value
manufactured goods, Class B for semi processed goods or low value manufactured goods,
Class C for unprocessed commodities and Basic for rice, palay, corn, corn grits, fruits,
vegetables and live stocks. Passenger services, on the other hand, were classified as First
Class, Second Class and Third Class depending on the kind of services and accommodation
offered.
The tariff structure for cargo provided different rates with respect to three distance
ranges namely, 0-100 miles, 101-300 miles and over 300 miles. The tariff structure prescribes
a set of formulae for user charges that vary in accordance with the commodity classification or
service and the direct distance between the ports of origin and destination.
Place - The logistics industry plays a very important role in the country’s development.
Considering the archipelagic setting of the country, logistics provides the primary means of
inter island transport. That is, the bulk of domestic trade is transported by shipping; inter
island travel, especially in the southern part of the country, is also largely dependent on
shipping. Having well networked offices and warehouses distributed geographically across the
globe.
Promotion - One of the reasons that attracted customer to the shipping industry is aggressive
promotion campaign, bannered by slogan, coupon, discounting price etc. With this campaign,
become promotional posters, brochures, newspaper and magazine ads, and a global TV
commercial entirely from crowd-sourced ideas.
As a result, the campaign line has become a rallying cry, building a new sense of excitement
and renewed enthusiasm for the country’s tourism industry. Up to the present, the campaign
continues to be supported by partners both in the public and private sectors.
People - Personnel training - New Employee Orientation Program, training of Code of
Conduct, Policy of Information Assurance, Adaptation to Competition and Fight Against

Corruption and the training related to their development like communication techniques,
multidimensional leadership etc.
Then additional department-based training like sales, product, customer relations and
operation with adequate motivational tools and techniques.
Physical evidence - having distinctiveness in physical layout through mix of color,
temperature, odor, Then distinct logos, brochures and website.
Process - Integration of processes, they need to provide maximum customer satisfaction with
proper information recording, information flow, redressed and management of internal as well
as external issues.
4. Buyer/Customer Profile
The customer of logistic companies basically business to business, which deals with
the satisfaction of target needs for carriage of goods by sea or air with aim the profit of the
enterprise. The more logistic industry tries to discover what clients need is and communicate
effectively with its target, by capitalizing on newly developed technology and the
requirements for security improvements, and have structured the timing of this venture to
address the heightened demand.
5. Factors affecting the cost of doing Business
Moving goods from one location to another is never free. You will need packing
materials, movers (workers), drivers, vehicles (trucks) and possibly storage facilities. The
greater the load and the longer the distance, the higher the cost.
But weight and distance are not the only two factors that affect transportation costs. There are
several other factors that have a significant impact on the cost of transportation. The following
are some of the important factors:
 Packaging: Transporting goods begins with packaging because you can`t just load
things into a truck haphazardly and drive away. You need proper packing materials that you
may need to buy. Packaging ensures the safety and security of your goods, but it also
increases volume and weight. Also, the mode of transportation determines the type of
packaging. For example, road transport and air transport have different packaging
requirements that can make a considerable difference in the costs of transportation.
 Mode of Transportation: Selecting the right mode of transportation is of utmost
importance when moving goods. You need to consider two things here: transit time (the time
it takes to reach the destination) and the costs associated with the chosen mode of
transportation. To lower transit time (faster transit), you need to use faster modes of
transportation, such as air transport, which has a higher cost. But higher transit time (slower
transit) can also increase costs by increasing the inventory carrying costs.
 Fuel Prices: Fuel prices are volatile and change constantly. In times of crisis and
upheaval, such as the threat of war in the old producing countries, the price of a barrel of
crude oil can fluctuate by as much as $5 and is currently priced at $69.07 ( as of August 7,
2018) or more on a single day. This can make a significant impact on your transportation costs
regardless of the mode of transportation you have chosen.
 Labor costs: Moving goods require labor and labor costs money. You need a team of
trained and experienced people to complete the job – to pack the goods, label and categorize
packages, load the packages into the truck, unload the packages from the truck, unpack the
packages at the destination, drive the trucks and keep inventory. The larger the quantity of
goods to be transported, the higher the costs will be.
 Inventory Carrying Costs: The goods being transported are the same as good as held
in inventory. When transporting goods over long distances, they may have to be stored in a
securely-guarded climate-controlled storage facility overnight along the way. Even after being
unloaded at the destination, they may have to be held in storage for some time. This can add a
significant amount to your cost of transportation.
 Security: Arranging adequate security is very important when transporting goods over
any distance. The higher the value of the goods, the higher the risk of theft and robbery. You
may have to hire professional security guards to protect your goods. This can affect your costs
significantly.
 Insurance Costs: The risk of damages, loss and theft can never be ruled out no matter
how careful the workers are during loading, unloading and transit. Therefore, it is important to
insure the goods. Depending on the type and value of the goods you are transporting,
insurance costs can make a significant contribution to your transportation costs.
6. Operation/ Production Aspects
6.1 AIRFREIGHT INTERNATIONAL & DOMESTIC FORWARDING
6.2 SEAFREIGHT INTERNATIONAL & DOMESTIC FORWARDING
or bulk cargo. Sea freight is computed by the container load and has two kinds:
Less Container Load (LCL)
Less container load or LCL is a shipment that does not fill a standard container or does
Full Container Load (FCL)
Full container load or FCL fills a given container either by bulk or maximum weight.
6.3 Customer Clearance

6.4 Exhibition and Events Logistics
World's fairs. It includes many things such as art in both major museums and smaller
galleries, interpretive exhibitions, natural history museums and history museums, and also
varieties such as more commercially focused exhibitions and trade fairs.
Commercial exhibitions, generally called trade fairs, trade shows or expos, are usually
organized so that organizations in a specific interest or industry can showcase and
demonstrate their latest products, service, study activities of rivals and examine recent trends
and opportunities. Some trade fairs are open to the public, while others can only be attended
by company representatives (members of the trade) and members of the press.
6.5 Self Storage Facility
Self-storage (shorthand for "self-service storage", and also known as "mini storage") is
an industry in which storage space (such as rooms, lockers, containers, and/or outdoor space),
also known as "storage units" is rented to tenants, usually on a short-term basis (often month-
to-month). Self-storage tenants include businesses and individuals.
6.6 Project Cargo
6.7 Packing and Crating
damage in transit.
6.8 Road Transport
Trucking means transportation of goods and personnel from one place to the other on
roads. Road is a route between two destinations, which has been either paved or worked on to
enable transportation by way of motorized and non-motorized carriages. There are many
advantages of road transport in comparison to other means of transport. The investment

required in road transport is very less compared to other modes of transport such as railways
and air transport.
7. Technology Developments
Technology is being used to provide faster and reliable delivery services. Consumers
are demanding, faster logistics with more options. It has become essential for Coltrans Cargo
to use technological innovations to utilize maximum space, manpower, warehouses, vehicles
etc. with control on wastage & fuel charges.
Internet of Things (IoT) will be able to provide highly integrated “Transportation and
Warehouse Management Solutions” connecting in-vehicle sensors and other integrated
devices over the network. Embedded sensors in transport vehicles, containers etc will
continuously capture, share, and act on real-time data.
Coltrans Cargo will move from traditional technological approach of Managing orders
and logistics to a more mature goal of improving quality of customer service, enforcing laws
and regulations and reducing liability cost.
Though machines can’t match human intelligence, but technical innovations combined
with human intelligence could bring much better results.Coltrans Cargo is using Autonomous
vehicles because Autonomous vehicles are minimizing the delivery time, damage chances, as
well as they are utilizing the entire space for the shipment. Overall it is reducing a lot of costs.
8. Industry Financial Analysis (growth, profitability, liquidity, leverage and efficiency)
The above graph shows the revenue of Coltrans Cargo (blue) together with its
competitor, which is Infinity Logistics (red). The highest revenue of Coltrans Cargo has
reached Php 54,004,642 in year 2016.

This graph indicates that the net income of Coltrans Cargo for the past three years in
which in the Year 2017 decrease. Year 2016 is indeed a year that the company experienced a
boost with their income.
As a whole, the cash of Coltrans Cargo had an increasing outcome to operate
compared to its competitor, Infinity Logistics which has a higher amount of cash. On the Year
2015 the cash and cash equivalents of Coltrans Cargo was 486,550 while 2016 it increased to
787,218 and during the year 2017 it became 785,291.

By the Year 2016, there has been a sudden increase with their current asset. The figure
above shows that Year 2015 and Year 2017 almost stagnant with their total current assets.
Figure shown above is the current liabilities of Coltrans Cargo in their three year
operation. On their 2015 the current liabilities was 2,387,983 while in the Year 2016 it
decreases to 2,302,243 and during the year 2017 it became 1,557,926.

The total liability of Coltrans Cargo in the Year 2015 has the highest liabilities than
the year 2016 and 2017. It indicates that as the company continuously expands, it also
increases their financial obligations.

Figure shown above is the stockholder’s equity of Coltrans Cargo in their three year
operation. On their 2015 the stockholder’s equity was 20,938,155 while 2016 it increases to
26,740,834 and during the year 2017 it became 21,784,518.
The blue line shows the account receivables of Coltrans Cargo and red line for the
Infinity logistic’s account receivables. The account receivables of Coltrans Cargo are
decreasing in the past 3 years.
9. Problems in the Industry
There are different logistics-related challenges per country. In the Philippines, there
are four things that require extra effort from freight and logistics companies to operate.
9.1 Rainy Days and Flooding
Although a tropical country, the Philippines has an extreme rainy season which usually
runs from June until October. We’ve said “extreme” because the country is visited by more
or less 20 typhoons a year with heavy rains and strong winds that lead to flash
flood, landslides, and other natural disasters. It’s really challenging for logistics and
freight companies to deliver goods safely and on time during the rainy season since some
roads are blocked, some ships are not allowed to sail and some flights are either delayed
or cancelled.
9.2 Heavy Traffic
Both companies and people suffer from heavy traffic in Metro Manila and other
populated cities – especially during working days. In terms of logistics, heavy traffic
sometimes delays the pickup and delivery time of goods which could affect the company’s
integrity and could also result to irate clients. Being stuck in traffic is also a no-no to
perishable goods. To prevent such things from happening, logistics companies should stretch
their delivery and pick up time to give some allowance for heavy traffic and other unpredicted
circumstances.
9.3 Process of Acquiring Customs Clearance
There are regulatory requirements to acquire customs clearance for outbound and
inbound shipments. For some reasons, these requirements change every now and then
which demand companies to pay attention to announcements and to also comply with the
revisions or additional requirements – whether they like it or not. In case you weren’t able to
complete the new requirements due to ignorance, you will suffer from additional costs and
shipping delays. This will be a big hassle for the business and your customers.
9.4 Limited Cargo Capacity in Provincial Airports
Several provincial airports in the country only cater to domestic flights. Because of
that, freight companies in those provinces are required to transport their products to cities
that could deliver international cargo. Also, smaller provincial airports could accommodate
only smaller planes which have limited cargo capacity. Therefore, if the amount of
cargo exceeds the required capacity in the airport, the freight provider needs to wait for
another flight going to that specific province to transport the excess goods. Hence, if you need
to transport goods in such provinces, make sure to set a realistic delivery time to
avoid disappointing your clients.
9.5 Cargo Crime
Cargo crime including theft, fraud, and the passage of contraband through commercial
shipping lanes poses enormous threat to security and the economy. Cargo Crime is a critical
concern of freight transportation operators, manufacturers, shippers, insurers, law
enforcement, and consumers.
9.6 Increase in Fuel costs
Fuel prices are volatile and change constantly. Fuel is a major cost in the operation of
Coltrans Cargo. However the price of fuel is an internationally set price based on supply and
demand.
9.7 Port Congestions
A serious problem affecting the nation’s economy today is the ever-working
congestion in the ports of Manila. The Philippines is vulnerable because the majority of prime
commodities here are imported via sea freight through its ports, which are based in Manila.
Because of a series of events, the containers were not released on time, leading to congestion
in the ports that has led to delays in unloading international vessels, many of which by passed
in Manila.
10. Critical success factors
Legend:
1 = "major weaknesses"
2 = "minor weaknesses"
3 = "minor strength"
4 = "major strength"
The Competitive Profile Matrix of Coltrans Cargo shows that Coltrans cargo has a
highest total score among its competitor which is All transport network Inc. and Infinity
Logistics Co. Coltrans Cargo has a total score of 3.10 while the All transport Network has
2.84 and 2.33 for the Infinity Logistics.
When carrying out a business so many matters compete for the attention of the
management. But it is extremely difficult to focus on those every single matter and also to
coordinate the whole staff to consider those matters. So organizations have to identify the key
matters and focus on those and integrate the whole staff to monitor and achieve those
identified key areas. In this point the critical success factors plays a main role. What is meant
by critical success factors? It means the limited number of areas in which results, if they are
adequate, will ensure successful competitive performance for the organization. They are the
few key areas where things must go right for the business to increase. If results in these areas
are not adequate, the organization's efforts for the period will be less than desired.
Critical success factors are relevant for every industry, but the factors will vary
according to the organization. Logistic industry is more into logistic service. Main critical
success factor that is common for most of the companies is pricing. And this factor is critical
to the logistic industry as well. Pricing is important for the organization's profit maximization
and it will effect to the company's present and future survival as well as its growth. It means
right pricing will retain the current customers and it will win new customers. Competitive
pricing strategy is very important. When determining the right pricing strategy company has
to consider the breakeven point, cost, competitors’ price and etc.
An additional main factor is quality. When it comes to logistic industry, their main
operation is the providing quality service. So the quality of service is essential and through
quality company can differentiate from its competitors. For improve the quality of service
organization can implement quality control divisions, maintain quality standards, frequent
quality checks and other strategies. The factor quality that is mentioned is not only the quality
of services; the idea is wider than that. Organization has to maintain quality in every aspect.
Large companies typically spend 2% of their revenues on advertising. Advertising is
expensive, and companies are often frustrated by their return on investment on their
advertising spend. They either don’t know what it is or it is lower than what they had
anticipated.
Increase Market Share through Current Customers. Put yourself in your customer’s
shoes to understand their needs and expectations. The best way to understand our customer
needs and expectations, to offer best in class service support to them, is to put ourselves in
their shoes. We need to offer the best quality of service care and support to our customers, as
we would expect from a product/service organization, if we were their customer.
Another major factor that should be continuously focused is financing. When it comes
to financing organization should consider about the various sources, maturities and operation
costs. For Cargo, it is needed to frequently upgrade their resources. To finance those upgrades
companies has to select best financing source. Otherwise they will face liquidity and gearing
problems.
B.2 Porter’s Five Forces Framework of Competitive Analysis
1. Industry Rivalry
Since the government’s goal involves the improvement of ports, bridges, airport
projects, railways and warehouse facilities in the country, it is safe to say that the
government’s project is in favor to the report released by Transport Intelligence (Ti) in 2015.
Ti is a trusted research and analysis company that focuses on the global logistics industry. The
report said that the Philippines could become a key market for local and international
companies that offer logistics and forwarding-related services in the coming years.
The Logistic Industry in the Philippines is continuously increasing. Rivalry or
competition of Coltrans Cargo is a part of the day to day businesses. The battle of companies
to share hard earned profits with competitors and sometimes goods because it gives
opportunities to one company to stand in line with another in terms of quality of service,
business strategy, job satisfaction.
2. Threat of Entry
The number of new entry in logistic industry is low due to large capital investments.
The main problem involves in the large capital investments in the form of vessel, operating
risk of a vessel and the container availability. In this case the Coltrans Cargo can relax
because the new competitors are very low.
Capital requirement of the logistic industry is very large, so the Coltrans Cargo threat
from the new entrants is low. As the capital is very large the profit is also too high in Logistic
industry. Because all exporters and importers know the best mode of transport their goods is
the shipping line. Switching cost of the customer is increase because of the lack of experience
of the new entrants. So, overall threat for the new entry will low.
3. Threat of Substitutes
There are a lot of alternative transportation will be major problem for Coltrans Cargo
because if any service or the goods are not delivered in a proper manner then the customer
trust on company will go down. If the customer of Coltrans Cargo are not satisfied by the
service they will jump to other substitutes who can give better services.
More number of transportations is available whether it is land or sea, but they all are
dealing in different prices, performance and quality. If the other transportation can almost cost
the same rates of the logistic companies but can reach on time then customers will think for
such substitutes. So, overall threat of substitutes will high.

4. Bargaining Power of Buyers
The buying power of consumer on Coltrans Cargo is high because buyer is one of the
strongest factors in shipping line business. Buyers may be in form of importer or exporter,
clearing agent, freight forwarder.
Number of customers is high in the Philippines due to local and tourist from another
country. But the similar price and quality will lessen the attractiveness. Customer's ability for
demand during purchasing will be high, because logistics is in threat of losing customer. Due
to easy availability of containers through agents instead of searching by the logistic companies
in different places the bargaining power of freight forwarders and agents will be more. So
overall bargaining power of buyer is high.
5. Bargaining Power of Suppliers
Suppliers barely make any difference to companies involved in logistic business,
especially in this business while it may affect to Coltrans Cargo. Many suppliers which are
shipping lines like pesticide, wooden pallets, container repairs and truck transportation due to
corporate contract or link ups of companies with service providers. While there are cases
when these same services are borne by shipping lines but then these charges are included in
freight rate which would be higher if the suppliers were not arranged by company. Supply
service expects a lower result due to lower contract coverage and weaker spot market rates.
Another supply which is related to loading of containers on third party vessels is very
important here because this is the only supply where shipping lines have to face the
bargaining of suppliers. Not all shipping lines own the vessel and therefore they hire the
service of other companies, to load their containers for different destinations.
B. Summary and Conclusion
The External Factor Evaluation Matrix (EFE) is a strategically tool used by the
researchers to determine whether the chosen company is able to effectively take advantage of
existing opportunities along with minimizing the external threats. Furthermore, this
framework helped the researchers formulate new strategies and policies to help the top
management in decision making.
Legend:
1 = "company's response to the external factor is poor"

2 = "company's response to the external factor is average"
3 = "company's response to the external factor is above average"

4 = "company's response to the external factor is superior"
In the external factor evaluation that the researchers used to formulate the strategies,
they evaluated the major opportunities and threats that might affect the Coltrans Cargo Based
on the evaluated EFE, a result of 3.61 weighted score explained that Coltrans cargo has an
Above Average position in the industry. Having a weight of 0.10, rapid growth of logistic
market reveals the Coltrans Cargo major opportunities and a higher cost upon entering in the
logistic market, unexpected tragedy reveals Coltrans Cargo major threats.
Opportunities for Coltrans Cargo
 Rapid Growth of Logistic Market, Freight forwarding and contract logistics
continues to be a growth industry.
 Larger Variety of shipping services, Shipping heavy items or large, bulky items can
be difficult;your customers are depending on you to deliver a product in excellent condition.
Larger items need to be packaged securely and safely to ensure they arrive at the other end in
the same condition they left your business. Crating, palletizing, wrapping and cushioning are
just a few of the many options available to make sure your large item delivery occurs without
any problems.
 Servicing for shipping good is demandable; demand is rising for shipping goods
service.
 High Competition in the Global market, To be able to have a strong brand image
and recognition with a good satisfactory service in a reasonable price.
 Continues growth and expansion, Another key to growth and profitability will be the
ability to analyze customers’ needs and then respond quickly with differentiated and advanced
logistics solutions. That will require better IT tools to improve internal process efficiency and
to generate analyses that result in deeper understanding of customers’ industries and business
processes.
Threats for Coltrans Cargo
 Increase in fuel costs, as prices increase for fuel at some point the logistic company
can no longer keep absorbing the cost of fuel and will pass this onto customer/clients
with higher prices.
 Unexpected Tragedy, the Coltrans Cargo has a state of bad situation because it might
cause a big problem when the disaster hit the operational activities. This has severe
consequences to the company like destroying business place; lower the productivity of
employees and no customers.
 Port Congestions,The primary cause of the port congestion problem was the daylight
truck ban imposed by the City of Manila.Trucks that regularly picked up containers from the
port for delivery to end-users in and around Metro Manila and returned empty containers were
suddenly stopped from their regular routine.
 Increase in Competitors, Freight forwarding and contract logistics continues to be a
growth industry. Increase in competitors is one of the major threats of Coltrans Cargo.
 Weather Conditions, Nowadays the environment is the most important external
influence on Coltrans Cargo. The Philippines is experiencing natural disaster, as it is
surrounded by bodies of water and is located along the Pacific Ocean’s “Ring of Fire” from
typhoons to tsunamis to volcanic eruptions to earthquakes.

 Cargo Crime is a critical concern of freight transportation operators, manufacturers,
shippers, insurers, law enforcement, and consumers.
 Smuggling and counterfeiting the trade in counterfeit goods is a major challenge in
an innovation-driven global economy. Organized crime groups play an increasingly important
role in these activities and benefit significantly from counterfeiting and piracy. The trade in
fake goods is booming, and is hitting the sales and profits of the firms affected by it. It
impacts governments, business in general, and consumers. It cuts revenues and reduces
economic well-being, health, safety and security.

CHAPTER V
COMPANY ANALYSIS
This chapter overlooked by the researchers is a process carried out for the top management
and investors to evaluate securities, collecting info related to the company’s profile and
services as well as profitability. In this chapter the researchers examined the various area of
their chosen company specifically the human resource, production, operation and marketing
area together with the company’s financial performance.
A. Human Resources Area

Corporate Human Resources Policy:
Equal Employment Opportunity
It is the policy of the Company to provide employment opportunities without regard to
race, religion, color, national origin, sex, age, ancestry, citizenship, veteran status, marital
status, sexual orientation or disability, or any other reason prohibited by law, and to maintain
a work environment free from harassment. Decisions as to hiring, promotion and other aspects
of the employment relationship must be based solely upon job-related qualifications.
Safety and Health
The Company is committed to providing its employees with a safe and healthy work
environment. Employees shall comply with all applicable occupational health and safety laws
and regulations.
Environmental Laws
All employees of the Company, and all of its facilities and operations, shall comply
with all applicable environmental laws, rules and regulations, including those dealing with
emissions to the atmosphere, discharges to surface or underground works, drinking water
supplies, solid and hazardous waste management, releases of hazardous substances,
community emergency response planning and toxic substances control.
Insider Trading in Securities
If a person possesses material non-public information concerning a corporation, it is
illegal for the person to trade in securities of the corporation.
All directors, officers and employees of the Company, and third parties who are in a
confidential relationship with the Company, shall not trade in or recommend the purchase or
sale of Coltrans common shares or any other Coltrans securities while they are in possession
of “material information” regarding the operations or prospects of the Company that has not
been publicly disclosed and disseminated to the investment community. All such persons shall
also similarly abstain from trading in, or recommending the purchase or sale of the securities
of any other corporation of which they have obtained unpublicized “material information” as a
result of their employment by the Company.
“Material information” is information which, if publicly disclosed, could reasonably
be expected to affect the market value of a corporation’s securities or to influence investor
decisions with respect to those securities. Specific examples of “material information” include
generally unanticipated changes in annual and quarterly earnings or dividend rates, significant
acquisitions, proposed tender offers or stock splits and senior management changes.
Information regarding major new products, contract awards, expansion plans or significant
litigation or regulatory proceedings may also fall in the category of “material information”.
• Questions Regarding the Code
An employee who has a question regarding the applicability or interpretation of the
Code should direct the question to:
• His or her manager, or
• Human Resource Manager
Questions may also be directed to the Corporate Compliance Officer.
• Reporting of Violations
If an employee knows of a violation or possible violation of the Code, the employee
should immediately report it to:
• His or her manager, or
• Human Resource Manager
An employee may also report a violation or possible violation of the Code directly to
the Corporate Compliance Officer. Any manager or Human Resource Manager receiving such
a report must, when appropriate, immediately advise the Company Compliance Officer.
• Investigation of Violations
All reported violations of the Code will be promptly investigated by the Company and
will be treated confidentially to the extent consistent with the Company’s interests and its
legal obligations.
All investigations by the Company of wrongdoing will be directed by the Corporate
Compliance Officer. Employees are expected to cooperate in the investigation of an alleged
violation of the Code. If the result of the investigation indicates that corrective action is
required, the Company will decide what steps it should take, including, when appropriate,
legal proceedings, to rectify the problem and avoid the likelihood of its recurrence.
• Discipline for Violations
Disciplinary actions may be taken for:
• Authorization or participation in actions that violate the Code.
• Failure to report a violation of the Code.
• Refusal to cooperate in the investigation of a violation of the Code.
Failure by a violator’s supervisor(s) to detect and report a violation of the Code, if such failure
reflects inadequate supervision or lack of oversight.
• Retaliation against an individual for reporting a violation of the Code.
Disciplinary action may, when appropriate, include dismissal. With respect to
disciplinary action, principles of fairness will apply including, when appropriate, review of a
disciplinary decision.
B. Marketing Area (Mix, Customers, Target Market)
Services:
1. AIRFREIGHT INTERNATIONAL & DOMESTIC FORWARDING

2. SEAFREIGHT INTERNATIONAL & DOMESTIC FORWARDING

or bulk cargo. Sea freight is computed by the container load and has two kinds:
Less Container Load (LCL)

Less container load or LCL is a shipment that does not fill a standard container or does
Full Container Load (FCL)

Full container load or FCL fills a given container either by bulk or maximum weight.

3. Customer Clearance
4. Exhibition and Events Logistics

World's fairs. It include many things such as art in both major museums and smaller galleries,
interpretive exhibitions, natural history museums and history museums, and also varieties
such as more commercially focused exhibitions and trade fairs.
Commercial exhibitions, generally called trade fairs, trade shows or expos, are usually
organized so that organizations in a specific interest or industry can showcase and
demonstrate their latest products, service, study activities of rivals and examine recent trends
and opportunities. Some trade fairs are open to the public, while others can only be attended
by company representatives (members of the trade) and members of the press.
5. Self Storage Facility
Self-storage (shorthand for "self-service storage", and also known as "mini storage") is
an industry in which storage space (such as rooms, lockers, containers, and/or outdoor space),
also known as "storage units" is rented to tenants, usually on a short-term basis (often month-
to-month). Self-storage tenants include businesses and individuals.
6. Project Cargo
7. Packing and Crating
damage in transit.
8. Road Transport
Trucking means transportation of goods and personnel from one place to the other on
roads. Road is a route between two destinations, which has been either paved or worked on to
enable transportation by way of motorized and non-motorized carriages. There are many
advantages of road transport in comparison to other means of transport. The investment
required in road transport is very less compared to other modes of transport such as railways
and air transport.
Price
• Cargo Rates
Rate calculations are based on details you provided. Rates are estimates only are
subject to change without prior notice. Final charges will be computed based on actual details.
Place
2253 Coltrans Compound Aurora Blvd., Pasay City, Metro

Manila, Philippines 1300
Tel: +63 (2) 833-2551 to 55, 887-5117
Fax: +63 (2) 833-2358, 831-8173
Customers
The customer of Coltrans Cargo basically business to business, which deals with the
satisfaction of target needs for carriage of goods by sea or air with aim the profit of the
enterprise. The more logisitic industry tries to discover what clients need is and communicate
effectively with its targetby capitalizing on newly developed technology and the requirements
for security improvements, and have structured the timing of this venture to address the
heightened demand.
Coltrans Cargo provides quality service with the quick reaction of numerous
customers support, assistance and services for the convenience that provides additional
elimination of inconveniences to develop customer loyalty and satisfaction for the clients.
C. Production and Operations Area
Inventory
The inventory process groups a few different operations that include scanning and
inventory consolidation. Here are a few considerations to keep in mind in order to properly
understand this section of the system.
• The Shipping Inventory not only counts the boxes within the inventory but the boxes
within the orders of the day these boxes are considered by the system as they are not scanned
as shipped yet which means they are still in the warehouse.
• Within the Inventory and Shipping process the system takes the Lot number instead of
the Box number. When receiving boxes the scanning process has to be done by Box number
not by Lot number. As a final comment the lot number is assign to the items right when they
are added to the staging area either by manually creating the inventory or by adding the items.
• When scanning boxes from the "Inventory" option the system will try to locate the
same box within the available inventory. If this box is not available, either because is already
marked as "Inventory" or is marked as "Shipped", the system will look for another box with
the same lot number that's still available to mark it as "Inventory" and swap the code numbers.
This way the boxes will have the right codes based on what it was physically scanned.
• If the system doesn't find any available boxes, the system will save it as adiscrepancy.
Process of Requesting for Service
 Request a Quote – the first step is to request a quote, go to their page
(https://www.coltranscargo.com/home) and request a quote.
 Filling out – second step is filling out the form that consist of full name and email
address.
 Selection of service – the third step is the selection of service, Provides the
information and details of the service that will be avail
 Submit – the last step is to submit the request.

D. Financial Performance
 Coltrans Cargo Revenue
REVENUE
2015 39,533,027
2016 54,004,642
2017 43,971,386
Based on the table above, the revenue of Coltrans Cargo shows that its Revenue is
increasing in year 2016 for the reason that freight forwarding demand continue to increase.
But in 2017 the Revenue of Coltrans Cargo was slowly decreased by -22.82% due to increase
in operating expenses like compensation& benefits, operation cost & other utilities, operating
expense, repairs of machine and equipments, gasoline and transportation, trainings and
meetings, depreciation, dues & subscription, insurances, professional fee and inventory.
• Gross Profit Margin
The comparison of the cost of goods sold of the company sells to the income obtains
from the goods and services. Result is expressed as a percentage in order to compare the status
of the Coltrans Cargo every year.
Formula:
Gross Profit Margin = Revenue – Cost of Goods Sold

• Net Profit Margin
Coltrans Cargo computed the profitability of net profit margin that measures the
percentage of net income an entity to its net sales. The proportion of sales on company that is
left after the expenses is being adjusted.
Formula:Net Income = Total Revenue – Total Expenses

• Return on Asset(ROA)
The total Coltrans Cargo invests money into capital assets and the return is measured
in profits. How much the company should produced net income by total assets during a period
by comparing net income to the average total assets. In other words, company can manage its
assets to produce profits during a period.
Formula:
Return on assets = Net Income / Total Assets
• Return on Equity (ROE)
The profitability of return on equity is to measures how much profit produce from its investors
or shareholders investments. This is important to potential investors because they will see the
efficiency of Coltrans Cargo on their money to generate net income.
Formula:
Return on Equity = Net income / Shareholder’s Equity
• Total Assets Turnover Ratio
The total asset turnover ratio is to measures Coltrans Cargo capacity to make sales
from its assets by comparing net sales with average total assets. This gives shareholders idea
of how company managed the ratios effectiveness to use the company its assets by making
sales.
Formula:
Asset Turnover = Sales or Revenues/Total Assets
• Current Ratio
The current ratio helps investors and shareholders to understand the liquidity of
Coltrans Cargo and how easily that company will be able to pay off its current liabilities. This
ratio expresses a firm's current debt in terms of current assets.
Formula:
Current Ratio = Current Assets / Current Liabilities
• Quick Ratio
Quick ratio it to measures the ability of Coltrans Cargo would be able to pay the debts
of company by using its most liquid assets. Also, shows the extent of cash and other current
assets that are readily convertible into cash in comparison to the short term obligation of
Coltrans Cargo.
Formula:
Quick ratio = (current assets – inventories) / current liabilities

Summary and Conclusion (IFE)
IFE Matrix
The Internal Factor Evaluation (IFE) Matrix is a strategy formulation tool to
summarize and evaluates the major strength and weaknesses in the functional area of Coltrans
Cargo. It also provides a basis for identifying and evaluating relationship among those areas.
Legend:
1 = "major weaknesses"
2 = "minor weaknesses"
3 = "minor strength"
4 = "major strength"
In the internal factor evaluation that the researchers used to help them formulate the
strategies, they evaluated the major strengths and weaknesses of Coltrans Cargo Based on the
evaluated IFE, a result of 2.66 weighted score explained that on a scale of 1-4, Coltrans
position is exactly on the average or halfway indicating that there is definitely a room for
improvement. Garnering a weight of 0.10, an established company with large impressive base
of satisfied clients reveals the Coltrans major strength and lack of promotional tools/activities
reveals Coltrans Cargo major weaknesses.

CHAPTER VI
STRATEGY FORMULATION
This chapter will show the different process of developing the strategy. Strategy
formulation requires a series of steps performed in sequential order. The steps must be taken
in order because they build upon one another. It is useful to consider strategy formulation as
part of a strategic management process that comprises three phases: diagnosis, formulation,
and implementation. Strategic management is an ongoing process to develop and revise
future-oriented strategies that allow an organization to achieve its objectives, considering its
capabilities, constraints, and the environment in which it operates. It will show six strategies
which are SWOT, SPACE, IE, GRAND, BCG and QSPM.
SWOT Strategic Matrix
The Strength-Weakness-Opportunities-Threats (SWOT) Matrix is a matching tool that
helps to develop four type of strategies: SO (strengths-opportunities) may describe Coltrans’s
internal strengths that used to take advantage of external opportunities. WO (weakness-
opportunities) used in improving internal weakness by taking advantage of external
opportunities. ST (Strengths-Threats) identifies company’s strengths to avoid the impact of
external threats. WT (Weakness-Threats) is defensive tactics directed at reducing internal
weakness and avoiding external threats.

SWOT Matrix by analyzing the external environment (threats and opportunities), and
your internal environment (weaknesses and strengths), the researchers use these techniques
to think about the strategy of the whole organization, a department or a team. Also, use this to
think about a process, a marketing campaign, or even your own skills and experience.
SPACE Matrix
The SPACE matrix is a management tool used to analyze a company. It is used to
determine what type of a strategy a company should undertake. SPACE is an acronym of
Strategic Position and Action Evaluation. The analysis allows creating an idea of the
appropriate business strategy for the enterprise. The analysis assesses the internal and external
environment and allows designing an appropriate strategy.

The analysis describes the external environment using two criteria - Environmental
Stability (ES) and Industry Attractiveness (IA). The inside environment is also described by
two criteria - Competitive advantage (CA) and Financial strength (FS).
The chart above shows that Coltrans Cargo has a competitive position. It shows that
even market share isn’t necessarily a strong cause of advantage in some situations. Coltrans
Cargo has attractive and relatively unstable environment.
Also, they have some competitive advantage; a working capital is their financial
strength. Coltrans Cargo should look for ways of their attachment. The solution is the
possibility of increasing operation efficiency and strengthening cash flow.
Internal and External Matrix
IE stands for Internal external as the name suggest that it’s based upon internal and
external factors of the organization. The IE is an important strategic tool which comes under
the portfolio management considered much similar to BCG Matrix. The IE matrix used to plot
the organization divisions in nine cell diagram, each cell has some meanings associated which
suggest strategies. It can be defined as the strategic management tool which is used to analyze
the current position of the divisions and suggest the strategies for the future for the better
results.
AIR FREIGHT SEA FREIGHT
REVENUES 8,794,277.2 13,181,550
PROFITS 2,467,234.4 37,008,151.6
It shows that it plotted to quadrant V and quadrant VI; it means that Coltrans Cargo
has an option to choose between Market Penetration, Product development and divestment
strategy. Coltrans Cargo should have a hold and maintain strategy. In this case, their tactical
strategies should focus on market penetration and Product development. They should conduct
activities that are used to increase the market share of their particular service which is the
Freight forwarding. Also, they should think of new or different characteristics that offer new
or additional benefits to their clients. Product/Service development may involve modification
of an existing service that satisfies a newly defined customer wants.
BCG Matrix
The BCG matrix was created by Bruce D. Henderson for the Boston Consulting Group
in 1970. This chart was created with the purpose of helping companies analyze their different
business units or product lines. It classifies business portfolio into four categories based on
industry attractiveness (growth rate of that industry) and competitive position (relative market
share). These two dimensions reveal likely profitability of the business portfolio in terms of
cash needed to support that unit and cash generated by it. The general purpose of the analysis
is to help understand, which brands the firm should invest in and which ones should be
divested.
The chart or graph is divided into four categories. These are the star, the question
mark, the cash cow and the dog. A product line of a business unit is plotted based on its
relative market share and rate of growth in the market and falls within one of these categories.
Evident in the Coltrans BCG Matrix which the company both falls in the Cash Cow and
Question Mark quadrant reveals that: under cashcow is Air Freight service which needs a
Product Development and Concentric diversification strategy, while under the Question Mark
category is Sea Freight Service which needs an intensive strategy.
GRAND Strategy
Grand Strategy Matrix is one of important matrix in strategy formulation frame work.
In each quadrant of the matrix there is a set of strategies specified on the sequential order of
attractiveness that are considered by the organization.
Coltrans falls in the first quadrant of the Grand Matrix shown above. The first
quadrant highlights that Coltrans Cargo has a strong competitive situation and there is a fast
market growth. Therefore, Coltrans Cargo should evaluate its current strategy for the
marketplace seriously to be able to survive and maintain its position in the market and to find
out the best strategy that can increase its effectiveness. In that case, Coltrans has the option to
adopt strategies that lies in the first quadrant such as the market development, market
penetration, product development, and concentric diversification.
QSPM
The Quantitative Strategic Planning Matrix is a strategic tool which is used to evaluate
alternative set of strategies. The QSPM incorporate earlier stage details in an organize way to
calculate the score of multiple strategies in order to find the best match strategy for the
organization.
Evaluated in the table above, the researchers listed first the external factors – threats
and opportunities and internal factors – strength and weaknesses that was being done in using
the key strategic factors. The two alternative strategies are product development and market
development was being considered for the implementation in the Coltrans Cargo. The total
attractiveness score for Product/service development is 4.57 and 4.44 attractiveness score for
market development.
Indicated in the table above, it was shown that the strategy of Coltrans Cargo should
be conducted in the service development. A strategy of service development would help
Coltrans Cargo to conceptualize, design and develop new service that they can offer to satisfy
the demand of its clients. By doing so, it would be a benefit for Coltrans Cargo to be
stabilized it profits and they can also compete along with its competitors, in order to for the
company to be more competitive, its strategy must be appropriate and precise in formulating
its designs that Coltrans Cargo can provide quality service domestically and internationally.
CHAPTER VII
OBJECTIVES, STRATEGIES, AND RECOMMENDATION
AND ACTION PLANS
This section summarizes key objectives which is one of the fundamental building
blocks of your strategic plan. Also, it will show strategies, recommendations and action plans
for each goal that can help change makers turn their visions into reality and increase
efficiency and accountability within an organization.
A. Strategies and Financial Objectives
After the researchers has analyzed the different strategy formulation tools from the
previous chapters. The researchers had come up with strategic and financial objectives and
directions for Coltrans such as:
 To maximize and utilize Coltrans’s fixed assets by investing more on the expansion of
land purchasing new modernized vehicles, tools and equipments for efficient productivity.
 To strengthen the profitability of Coltrans Cargo in the succeeding years which will
yield a higher amount of return
 To increase the revenue and profit by increasing promotion
 To double Coltrans’s market share in the next five years
 To increasingly participate maritime activities, and continue to explore opportunity for
product development to ensure steady growth of the company.
 To build customer loyalty and develop a strong brand image

B. Recommended Business Strategies
By building a strong brand image of Coltrans Cargo and they have an enough budget
for their strategies they can easily implement their strategies that can innovate their services
and some facilities. Since their revenue is increasing annually they will have no problem in
increasing their budget.
Strategy I - Product Development
The Product Development is to create new services to benefit customers. In this way,
the company can maximize the resources.
Strategy II – Market Development Strategy
Segmentation & Promoting
In offering the services of Coltrans Cargo, Coltrans must have a market Development
Strategy this can be a segmentation of consumer because Coltrans want to target businesses
local or international. And they must create some good advertisement for example engage in
aggressive social media campaign. This can gain brand and company awareness for Coltrans
Cargo with the other business alliances to create partnership with the company’s services.
C. Recommended Organizational Strategies
Coltrans Cargo should establish a research development department in order to
forecast and monitor their business activities such as, inventories, deliveries, and revenues.
Also, the employees should have a proper trainings and seminars that would benefit the
growth of the organization.

D. The Strategy Map
Illustrated in the strategy map the researchers created, they had identified Product
development and Marketing Development as Coltrans Cargo major strategies enabling them
to fulfill their organizational goals. The researchers recommend in its Product Development
by purchasing and investing on computer software and cargo equipments that would help
them fulfill and obtain its customers demand and capture their satisfaction and loyalty. With
the internal operations wherein increase the effectiveness of company’s logistic process and
also reduce the cost of procurement. Meanwhile, upon entering and competing in the global
market, Coltrans Cargo should invest in its fixed assets specifically land, machineries and
equipments for their expansion. They should extend their market to retain and capture new
customers in which internal should intensify their marketing and advertising campaign for the
better efficient productivity of Coltrans Cargo Inc.
E. Financial Projections and Overall Evaluation of the Strategies

Illustrated in the table above is the projected balance sheet made by the researchers
formulated based on their following assumptions interconnected with their strategies and
action plans for Coltrans Cargo. The following assumptions are:
An increase of 5% is projected in Coltrans Cargo’s assets, liabilities and Stockholders’
equity for the succeeding years if they will Income investing, investing in some machineries,
equipments and computer software that will improve the quality of service that Coltrans
Cargo has to offer.
The projected income statement of Coltrans Cargo shows a 5% increase in their
revenue, administrative expenses and net profit will be seen following the researchers plan to
expand their market. To be able to achieve its goals and objectives, prioritizing an efficient
and effective work place in its operations through various seminars and training should be
imposed to its employees. Moreover, modernized machineries and equipments that will
increase Coltrans productivity will also contributes to Coltrans upon entering the global
market.
F. Department Programs
Human Resource Action Plan
Human Resource
Activities Expected output Time Person responsible

frame
For the employees to gain 1 Year Human Resource
Conduct their competitive side and Management
Trainings and develop their skills. By
Seminars giving them those activities,
it would make them widen
their experiences through
the process of doing their
task potentially.
Improve and To have the best qualified 1 Year Human Resource
advance the employees that benefit in Management
recruitment the growth of their
process organization.
Marketing Action Plan
Marketing
Activities Expected output Time frame Person

responsible
To improve the brand 2 Years Marketing
Strengthen reputation and brand image
brand image of the company
Widening the To capture potential 2 Years Advertiser

advertising customers/clients and gain
campaign such customers/clients loyalty.

as social media
Operations/Production Action Plan
Operations/Production
Activities Expected output Time Person responsible

Frame
It is the way to facilitate the 2 Years Operations Manager
Conceptualize a development proposal that
Research would help them strengthen
Development their strategies.
Department
Using improved To monitor their deliveries 2 Years Operations Manager
technology that and cargoes. Maintain a
will effectively right access of distribution
lessen risks through the process of
delivering schedule to
avoid delays.
Finance Action Plan
Finance
Activities Expected output Time frame Person responsible

They should lessen the 2 Years Finance Manager
Budget for the unexpected expenses so that
project of each they would use portion of
department for their money for the
the improvement development of their
of the company products and organization
itself.
CHAPTER VIII
STRATEGY EVALUATION MONITORING AND CONTROL
This chapter will show strategy evaluation monitoring and control by The Balanced
Scorecard, which is a business framework used for tracking and managing an organization’s
strategy. The BSC framework is based on the balance between leading and lagging indicators,
which can respectively be thought of as the drivers and outcomes of the company goals. These
key indicators tell the company whether or not they accomplishing their goals and whether
they are on the right track to accomplish future goals.
1. Balance Scorecard
Coltrans Cargo’s Balance Scorecard
Objectives Measures Targets Initiatives
Increase To increase the This effect will Action plan for

market share market share, increase potential increase market share
Coltrans Cargo customers/ clients and
should be aggressive a good position of
in the use of Coltrans.
promotional tools.
Start Promoting
Company’s services
and keep clients
informed about
whatever new
services are available.
Spread awareness
about what company
has to offer.
Customer Provide a satisfactory Customer/ Clients Customer satisfaction

service & customer service to loyalty to Coltrans surveys
satisfaction Coltrans Cargo’s Cargo
clients by fast and on
time delivery, quality
service, and offer

discounts to every
loyal
customers/clients.
Internal Increase effectiveness Trainings and seminars Reduce the cost of
operating of company’s logistic must be administered procurement
efficiency process by having in order to enhance the
different departmental skills of each
activities to increase employee to strongly
employee’s compete outside the
satisfaction and its organization.
competitiveness
towards their
individual goals that
will benefit Coltrans
Cargo productivity
and operations.
Learning and Elimination of manual

growth work through Investing in some Team building must
automated business machineries and implement to
support process and equipments that will strengthen their
consequently saving make the work more relationship in the
time. effective and efficient. workplace.
Top Management
should implement a
harmonious yet
professional
relationship with their
employees.
CHAPTER IX
CONCLUDING REMARKS
The Philippine Logistics Industry of all and it is the life of domestic economy.
Logistics has always binding elements that connects producers, manufactures and markets for
goods. The Logistics industry can provide benefits for the purposes of transportation of
freight.
Although, industry has many changes in terms of development, but there are a lot of
pressures for competition. The procedure and process to set standard by continuing search for
new strategies, technology development and cost-cutting survival strategies.
Freight and logistics companies will need to deal with numerous issues in the years
ahead. For example, as trade routes become more competitive and as freight rates fall, the
industry’s traditional bargaining power with its shippers volume will be challenged. One
important strategy to counter this challenge is to use balance sheet strength to acquire niche
players in important trade routes and geographies, especially in emerging markets.
Another key to growth and profitability will be the ability to analyze customers’ needs
and then respond quickly with differentiated and advanced logistics solutions. That will
require better IT tools to improve internal process efficiency and to generate analyses that
result in deeper understanding of customers’ industries and business processes.

The researchers can say that the Logistics industry is a necessity, from which we all
prosper by improving new technological and favors of domestic. It is vital for the existence
and future economic development of the Philippines.
The recommended strategies complete with supporting details integrated in this paper
can be considered by Coltrans Cargo. The researchers recommend the specific strategies are:
 Market Penetration can help the company to generate profits by penetrate the market
through promotional activities, promo fares and online freight booking to create customers
awareness.
 Product Development provides different type of services to maximize the resources
by purchasing machineries and equipments that will increase productivity of Coltrans Cargo.
 Market Development indicates efficiently and effectiveness of new services by
expanding their resources to reach more target market.
Overall, the researchers conclude that Coltrans Cargo has an effective performance in
the industry and has a potential to develop its market and be more competitive in the global
perspective. By doing so, the researchers conclude that Coltrans Cargo must also apply and
passed the certifications for a quality standard such as the ISO 9001 for a more globally
competitive company and strengthen their brand image.

APPENDICES
References:
https://www.rappler.com/business/194294-gross-domestic-product-philippines-q4-2017-
economic-growth
https://countryeconomy.com/gdp/philippines
https://www.philippinecompanies.com/companyprofile/47930/coltrans-cargo-phils-
https://www.zoominfo.com/pic/coltrans-cargo/28004571
https://www.pressreader.com/philippines/the-philippine-star/20120329/282664684352637
https://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-
counterfeiting/Trafficking-in-illicit-goods-and-counterfeiting
http://www.pentalift.com/blog/legal-issues-in-the-distribution-transportation-and-logistics-
industry/
https://www.rappler.com/business/194294-gross-domestic-product-philippines-q4-2017-
economic-growth
https://countryeconomy.com/gdp/philippines
https://www.bworldonline.com/improving-the-local-logistics-industry/
http://www.m2comms.com/blog/2017/10/5/the-logistics-industry-in-the-philippine-growth-
story
ETHICS DECLARATION
We, Mary Claire Catacutan, Christian George De Guzman, Eugene Tan Faner, Shaira
Aquino, Kirk Patrick Pascual and Gerald Symond David, declare that the enclosed
Strategic Marketing Management Research Paper contains a balanced and objective
discussion of the various topics covered in our research work. This research paper holds
sufficient details and references to permit others to use it as a guide in conducting similar or
related research in the future.
We are fully aware that fraudulent or knowingly inaccurate statements constitute unethical
behavior and therefore unacceptable. The researchers ensure that they have written original
work, and if they have used the works and/or words of others, these were appropriately cited
or quoted.
All research procedures were performed in accordance to what are permitted by the school.
Appropriate approval was obtained from the subject company/organization of this research
paper prior to the conduct of our research work.
All substantive and possible conflict of interests that might be construed to influence the
results of this research work is fully disclosed.
Noted by:
(Signature over printed name)

AP JOSEPH FLORANTE C. ALVARO, MBA, AGIA fellow
Subject Professor/Research Adviser
MARY CLAIRE O. CATACUTAN
Address: 1617 Sisa St., Sampaloc, Manila

Mobile: 09195680635
Email: ashley_claire_18@yahoo.com.ph
CAREER OBJECTIVE:
To obtain a position that allows me to utilize and contribute my knowledge and skills and at
the same time gain professional growth together with the company.
Skills and Personal Qualities:
 Proficient with Microsoft Word, Excel, and PowerPoint, and Internet.

 Extraordinary written and communication skills
 Have good decision making and problem solving
 Able to handle the pressure situations
 Flexible and can do multitasking.
EDUCATIONAL BACKGROUND:
Tertiary Level
Colegio De San Juan De Letran
151 Muralla St., Intramuros Manila 2015-2019
Bachelor of Science Major in Marketing Management
Adamson University
900 San Marcelino St., Ermita, Manila City 2014-2015
Bachelor of Science Major in Financial Management
Secondary Level
Holy Trinity Academy 2010-2014
Calabash Rd. Balic-balic Sampaloc Manila
References will be provided upon request.

I hereby certify that the above mentioned information is true and correct to the best of my
knowledge and belief.
Mary Claire O. Catacutan

Shaira T. Aquino
Unit 21O Acacia Building Suntrust Parkview
NatividadAlmeda St. Ermita, Manila
0921 769 1178
shairaaquino812@gmail.com
OBJECTIVE
Intend to build a career at a leading high-tech environment with committed and dedicated
people, which will help me to explore myself and realize my potential. Willing to work as a
key player in a challenging and creative environment.
EXPERIENCE
Ekonflux Solutions Inc.

Salustiana D. Ty Tower
104 Paseo de Roxas, Legazpi Village
Makati City
September 2017- February 2018
Concentrix
Uptown Place Tower 1
East Uptown BGC, 11th Dr
Taguig City
March 2017- September 2017
SPI Crm Inc.

Nicanor Garcia St. Brgy. Bel-Air
Makati City
August 2016- March 2017
EDUCATION
Colegio de San Juan de Letran

Intramuros, Manila
College of Business Administration Major in Marketing
June 2014- March 2016
University of Santo Tomas

Espana, Manila
College of Accountancy
June 2012- March 2014
De La Salle Lipa
Lipa, Batangas
Secondary
June 2008- 2012
CHARACTER REFERENCE
John Louis Sibayan

Second Lieutenant- PCG
(0919) 4660 773
Bryan Manguiat
HR Admin IBM
(0906) 2619075
Dante Reyes Jr.

Tech Support SPI
(0905)5558070
_______________
Shaira T. Aquino
Christian George De Guzman

Address: 2631 2nd floor Callejon St Tondo Manila
Mobile: 0919 830 0940
Email: christiangeorgedeguzman@yahoo.com
CAREER OBJECTIVE:
To attain the post of “Marketing Executive” where I can utilize my communication skills to
impress and convince potential customers and clients, thereby generating revenue for the
organization.
Skills and Personal Qualities:
- Excellent communication skills with ability to generate sales leads.

- Innovative ideas to set up new marketing opportunities.
- Good command over writing / drafting website content for extensive marketing network.
- New and fresh thoughts to expand the marketing network through Internet, press, media and
campaigning.
- In-depth knowledge of marketing adjectives and plans, to provide a sound basis of Sales
promotion.
- Enthusiastic and full of vigor to lead the Sales strategy.
- Convincing aptitude with ability to troubleshoot single-handedly with any of the marketing
strategies.
- Analytical approach to predict the scope of product in the market in the near future.
- Knowledge of advertising activity as a part of marketing strategy.
- Public speaking ability to promote the products on business conferences and seminars.
- Effective time-management with target oriented approach.
Tertiary Level
Colegio De San Juan De Letran
151 Muralla St., Intramuros Manila 2014-2019
Bachelor of Science Major in Marketing Management
Secondary Level
St. Joseph Academy 2010-2014
Gagalangin Tondo
References will be provided upon request.

I hereby certify that the above mentioned information is true and correct to the best of my
knowledge and belief.
Sincerely yours,
Christian George De Guzman

Kirk Patrick G. Pascual

Blk 3 Unit A, San Matias Street,
San Antonio Valley 10, Sucat, Paranaque City
Mobile No. 09171493083
Email Add. patrick28.trixx@gmail.com
OBJECTIVE:
To be able to work in a company where I will be able to show my strengths and capabilities
through comprehensive guidance and training with the means of enhancement and
advancement.
And to work for company that gives me platform to develop new skill set while utilizing my
present knowledge.
SPECIAL SKILLS:
 Dance Choreographer/Instructor
 Customer-Oriented person
 Computer Literate (MS WORD, EXCEL, POWER POINT)
 Hardworking and manages to work well under pressure.
 Interpersonal skills
 Verbal and Written Communication
PERSONAL INFORMATION:
AGE: 22 Years old

PLACE OF BIRTH: Paranaque City
DATE OF BIRTH: January 28, 1996
CITIZENSHIP: Filipino
HEIGHT: 5’7 Ft.
RELIGION: Roman Catholic
STATUS: Single
Tertiary Level:
Colegio de San Juan de Letran

Bachelor of Science in Business Administration 2012- Present
Major in Marketing Management
Secondary Level:
Escuela De San Dionisio

2008-2012
SEMINARS ATTENDED:
• Power of Marketing as a course 2012

• The Grass is Green on the Marketing side 2013& 2014
• 3D’s Unleashing your Potentials 2015
• Convergence: Achieving harmony in the corporate world 2017
CHARACTER REFERENCE:
Jessica M. Ugali / Adviser

09165805654
Lanz Christian Pagulayan / Letran Operations Society President

09165956266
Paola Mae Espares / Jet Airways Sales Assistant

09151138084
I hereby certify that all statements mentioned above are true and correct to the best of my
knowledge. Thank you and God bless.
_______________________________
Kirk Patrick G. Pascual
Applicant

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Colegio de San Juan de Letran 1 1

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

Columbia Transport (also known as Coltrans Cargo Philippines), was organized in

Robert& Deedee Publishing Co., Dee’s Gourmet Popcorn.

Product/Service - Coltrans Cargo offer an outstanding range of Logistics

 AIR FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING

 EXHIBITION AND EVENTS LOGISTICS

 SEA FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING

 OFFICE AND HOUSEHOLD REMOVALS

 PACKING AND CRATING

Coltrans such as:

yield a higher amount of return

 To increase the revenue and profit by increasing promotion

 To double Coltrans’s market share in the next five years

 To increasingly participate maritime activities, and continue to explore opportunity for

product development to ensure steady growth of the company.

 To build customer loyalty and develop a strong brand image

 Product Development provides different type of services to maximize the resources

 Market Development indicates efficiently and effectiveness of new services by

expanding their resources to reach more target market.

competitive company and strengthen their brand image.

History of Coltrans(1986 – 2001)

specialize in exports to Rotterdam.

agreements abroad to service the accounts.

1988 - Increased export volume in Europe; was appointed as an IATA agent.

Philippine Economic Zone Authority.

Jet Air Services (JAS) of Italy with 108 offices worldwide.

1991 - Streamlined operations and reset objectives.

1992 - Participated in handling exhibitions; established Subic Bay Freeport-Coltrans Branch.

agreements abroad to service the accounts.

1994 - Increased capitalization to meet expansion requirements.

1996 - Registered Clark Office; established JAS-Southernship Davao; secured Heavylift

1997 - Opened office in Bataan and Cavite.

1998 - Established Coltrans Moving and Trucking Services.

Batangas Office to handle heavylift project and general cargo.

Many companies describe themselves as leaders in providing quality services.

anticipated and every requirement provided.

communities they serves.

Coltrans, is committed to provide Service Excellence at most reasonable cost to our

Coltrans’ vast resources of management and international network provides distinctive

capability to offer total logistics services

Columbia Transport (also known as Coltrans Cargo Philippines), was organized in

satisfy the different logistic requirements of the business community.

Beverage,Robert& Deedee Publishing Co., Dee’s Gourmet Popcorn.

Coltrans Cargo offers an outstanding range of Logistics Services:

1. AIR FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING

guide you through this process.

2. SEA FREIGHT INTERNATIONAL AND DOMESTIC FORWARDING

other shippers/suppliers to fill a container and lessen the cost of shipping.

purpose or standard container. Container specifications for maximum volume or weight

handling as they are loaded in full.

Customs clearance work involves preparation and submission of documentations

clearance along with documents.

4. EXHIBITION AND EVENTS LOGISTICS

An exhibition is an organized presentation and display of a selection of items. In

such as more commercially focused exhibitions and trade fairs.

5. SELF STORAGE FACILITY

"storage units" is rented to tenants, usually on a short-term basis (often month-to-month).

Self-storage tenants include businesses and individuals.