XYZ Manning Company A New Strategic Business Plan

XYZ Manning Company:
A New Strategic Business Plan
By:
Airra Katrina G. Drueco
Everett Preston M. Jacobs III
A Capstone Project Submitted to the School of IE-EMG

in Partial Fulfillment of the Requirements for the Degree
Bachelor of Science in Engineering Management
Mapa Institute of Technology

October 2010
Acknowledgement
Upon completion of this capstone study, we would like to sincerely express my
gratitude to those who helped us throughout the process of accomplishing the study.
First of all, we would like to thank the Almighty God for the strength, wisdom,
and perseverance that He entrusted which made the study possible.
We would like to extend our warmest appreciation to our friends, especially
Marvee Garcia, Michael Tan, Steven Basa and Maam Jasmine Pinugu who always
support us and who have been unselfishly extending their efforts to help us be inspired all
through the study.
We would like to thank our panel members, Prof. Rene Estember, Prof. Janice
Gumasing, Prof. Madel Delfin and Prof. Grace Intal for their suggestions in the
preparation and completion of the study. Special Thanks to our adviser, Prof. Elisier
Fantillo for his help and guidance.
For the XYZ Company, thank you so much for all the help in making this study
possibly. For Sir Arby Santos, thank you for guiding us in this study. For Marvee Garcia,
we are very thankful for being our witty friend as well as our boss; you really made a big
impact on this study.
Last but not the least, to our families who are very supportive financially and
emotionally. This study is dedicated to you. We love you so much!

Executive Summary
XYZ Manning Company is one of the pioneers in the cargo shipping industry in
the Philippines, founded by Francisco C. Delgado in the 1960s. One of its businesses is
the Manning and Crewing Agency. For more than four decades, the company has
maintained its diligent pool of crews to cater to its clients high-standard requirements.
This study aims to come up with a new strategic business plan that will help the
company (1) to increase profitability and branding; (2) to systematize operations; and,
(3) to retain and increase both internal and external customers (crew and principals).
The authors summarize the companys current situation and analyzed the
manning industry through the application of SWOT analysis, Porters five forces, and
Kepner-Tregoe decision analysis which would help them generate a strategic business
plan at the end of this study. If the strategic plans are pursued, there will be a 75%
annual in the companys net income, based on the financial projection up to year 2015.
Table of Contents
List of Tables i
List of Figures i
Chapter 1: Introduction 1
- Background of the Project 1
- Project Objectives 3
- Scopes and Limitations of the Project 3
- Significance of the Project 4
Chapter 2: Review of Related Literature 5
- Synthesis 15
Chapter 3: Capstone Project Methodologies 17
a. Financial Statement 17
b. Customer feedback 17
c. Operational Business Process Flow 18
d. Industry Analysis 18
e. Porters Five Forces Model 18
f. Financial Ratios 18
g. SWOT analysis 19
h. Kepner-Tregoe (decision analysis) model 19
i. Strategic Business Plan 19
Chapter 4: Results and Analysis 20
Executive Summary 20
Introduction 21
I. Input 22
A. Financial Statement 22
B. Customer Feedback 22
C. Business Process Flow 23
D. Industry Situation 23
II. Process 24
A. Porters Five Forces Model 24
-Analysis from Porters Five Forces model 26
-Porters Five Forces Conclusion 27
B. Financial Ratios 28
- Current ratio
-Total asset turnover
-Debt ratio
C. SWOT Matrix 30
-SWOT-driven Strategies 33
-Matrix Analysis 34
-Alternatives 35
D. Kepner-Tregoe Decision Analysis Model 43
-Comparison of Alternatives 44
-Potential Problem Analysis 46
Conclusion 47
Chapter 5: Recommendations 48
References 50
Appendices 53
List of Tables
Table 1.1 Marketshare of XYZ Manning from Year 2007-2009 2
Table 3.1 Conceptual Framework 16
Table 4.1 Financial Ratios 28
Table 4.2 SWOT Matrix 30
Table 4.3.a Kepner-Tregoe decision analysis 44
Table 4.3.b Kepner-Tregoe decision analysis 45
List of Figures
Figure 4.1 Input-Process-Output Model 22
Figure 4.2 Porters Five Forces 25

Chapter 1
INTRODUCTION
Manning involved finding manpower and training these maritime industry
workers to become efficient and competitive resources to the marine industry. Providing
professional services to different principals which will be allocated will achieve the main
goal of providing utmost customer satisfaction and in so doing, will provide stable jobs
for these workers.
A POEA report for year 2009 cites that, 23% of OFWs deployed are sea based,
and their income constitutes a major part of remittances which help thousands of Filipino
families. However, there is also a decrease of 5% from 2008 to 2009 in the number of
contracts that have been processed for the seafarers resulting to an increase of
unemployed Filipino seafarers.
XYZ Manning is a licensed crew manning agency in the Philippines and it was
founded in the year 1975. Their main purpose is to supply Principals with highly
qualified and competent crew. They provide a full range of recruitment and commercial
services to owners, yards and managers, seafarers and maritime workers. The company is
dedicated in achieving the highest levels of service for these clients.
The company offers services to the ship owners/managers, which includes
seafarers employment intermediation services. These services can be provided
individually or collectively, including:

Recruitment of seafarers and maritime industry workers for all levels and skill
sets;
Consultancy services for ship owners: technical, crew management, seafarer
training, manning and recruitment;
Seafarer and marine worker training ; and
Port agency services .
YEAR 2007 2008 2009

XYZ Manning
Php5,264,841.66 Php6,253,044.32 Php8,530,580.53
Revenues
XYZ Manning
145 222 330
No. of deployment
Deployment of
266,553 261,614 330,424
OFWs Sea based
Market share of
0.05% 0.08% 0.10%
XYZ manning
Table 1.1 Marketshare of XYZ manning from year 2007-2009
In its 35 years of operation, XYZ manning agency did not adapt to the trends in
the environment. Their management system is out-dated, which includes marketing
strategy, system operation and even the training materials that they use for their seafarers.
As such, they only provide sufficient services to the existing principals basic
requirements. The company is just a minor player in the industry, owning a mere 0.10%
market share in 2009 in the manning industry. One reason cited for this is because they
are just seen as a training ground or stepping stone of new graduates for experience only
and they will go after other big companies. They have set an average standard in
employment selection so that despite the poor qualification of seafarer, they are accepted,
which results to an incompetent pool of crew. Since they produce incompetent crews,
their principals could bargain for a lower price, resulting in the withdrawal of service by
the high-ranked officers, subsequently leading to a shortage in the number of these high-
ranked officers in the industry. The precence of these officers are relevant, given the
rivalry existing in the industry and career crossover that occur. Thus, the company has a
negligible market share in the manning industry and intense competition puts strong
downward pressure on branding.
Currently, the company has only 6 principals with a total of 15 vessels only, due
to competent offerings from industry rivals. XYZ Manning consistently rates low in the
number of seafarer deployment; they only supply 1 out of 20 vessels of each principal.
The objective of this study is to maximize their six principals by increasing the
number of supplied vessels to 30% annually, in a span of 5 years, and to generate a new
strategic business plan for the company.
The study will focus on the whole XYZ Manning Company including operations,
finance, MIS, human resource and marketing. It will also give focus on macro
environmental factors. It will not cover an in-depth analysis of the whole manning
industry nor the implementation of the authors proposal.

Upon conducting the study, the authors will be able to apply specific EMG tools
necessary to assess the situation of the companys environment. Thus, the authors will be
able to come up with strategies, acquired from the study. The results of the authors study
could become a relevant basis for the XYZ Manning to improve and revolutionize its
management in order to sustain the company and to have a competitive advantage over
other manning agencies.
This study could help the EMG students in conducting the proper company study
in a holistic approach. It can contribute to future researcher by providing the data that has
been gathered during the period of the course, which is fundamental in improving other
related problems or cases and may also be used as comparison to other agencies
As EMG students who are concerned with the whole management of a company,
it can be very beneficial for the authors for it is an opportunity to learn the right problem-
solving methodology in a company-based environment. By doing the study, Engineering
Management in practice becomes the main theme .It is a prelude to the actual work done
by Engineering Managers.
Chapter 2
REVIEW OF RELATED LITERATURE
According to the article of MANILA (AFP); Philippine seafarers buoy economy
in a sea of uncertainty, (2008). It was predicted that trade will slow next year due to the
global financial crisis, while hundreds of Filipino seamen will still gather in downtown
Manila every day to scan vacant notices.
Junco (2009) said, job prospects for Filipino seamen remain good because of
their good record and performance. Fluent in English and highly trainable, Filipinos are
much sought after to man anything that floats -- from luxury cruise ships to giant tankers
and container ships. Ship owners preference to field Filipino seafarers came in the early
80s, after the PTC experimented for the first time to give the top posts to Filipino
seafarers under the auspices of a Norwegian flagship, which was its partner and principal.
As result, all the Filipinos who fielded the top posts and the crew found to have
executed excellently in managing the ship triggered the Norwegian and other principals
in Europe to hire all Filipinos in the top posts, he added.
The Philippine Overseas Employee Administration projected that 12,000 jobs will
open in 2010 for seafarers. Foreign ship owners would need about 12,000 Filipino
seafarers this year to fill the vacuum in shipping fleets, a ranking Philippine Overseas
Employment Administration (POEA) official said.
POEA Administrator Rosalinda Baldoz said that they have recently met with
Italian Cruise operators who expressed their interest to hire about 1,600 Filipino seamen
this year.
It was earlier projected that in the next two years there will be shortage in officers
globally and that foreign shipowners are looking at the Philippines to source these needed
officers.
Press Secretary Cerge Remonde said today he was informed by Labor Secretary
Marianito Roque that the Department of Labor (DOLE) and the seafaring industry have
agreed that as a precautionary measure shipowners employing Filipino seamen would
only transit within the Maritime Security Patrol Area in the Gulf of Aden to avoid pirate
attacks. Vessels carrying Filipino seamen are required to traverse only the security area
and the shipowners and manning agencies are now required to submit their vessel travel
plans and a complete line-up of their crew.
Ibaviosa said,A more pressing concern, is rampant piracy near the sea lanes off
Somalia, where 120 Filipino crew aboard 11 foreign-flagged ships were seized by pirates
between April and September this year. Remonde added,The Philippine Overseas
Employment Administration (POEA) and other concerned agencies were directed to
extend all possible assistance to the families of the seafarers still being held captive by
Somali pirates
As a result, Vice President Noli de Castro has ordered the Philippine Overseas
Employment Administration to cancel or suspend the license of the manning agency that
recruited the 23 Filipino seafarers still being held hostage by Somali pirates. The
seafarers are crewmen of the M/T Stolt Strength, a time-charter ship hijacked on
November 11, 2008 in the Gulf of Aden.
De Castro noted that all other manning agencies and their principals have secured
the release of seafarers whose vessels were hijacked in Somalia. Manila has implemented
the double hazard pay scheme for Filipino seamen who will be sailing through the Gulf
of Aden, which the POEA has declared a "risk zone."
David Dearsley, head of Strategic eview and Development Project of ICS ,
said the Philippines has the highest number of ratings all over the world, followed by
India and ussia. As for the number of officers, the three nationalities are almost of the
same level.
The International Development Environment Shipping System IDESS , a well-
known seafarers and crew training center all over the world, had already deployed
, -trained Filipino seafarers and crews since it came in the country about 2 years
ago. obert ayner, IDESS chief executive officer CEO , said that the deployed trained
Filipino seafarers and crew were all competent in their respective jobs in the ships as they
were trained for that purpose. He added that the training center wont sacrifice its
standard quality merely because of profits as it only teaches eight to 2 students per
training period.
Some 20% of all merchant seafarers come from the Philippines making it the
largest single supply nation to the world's merchant fleet. As a result, the Philippine
government is keen to promote its seafarers to the industry as the remittances which they
send home have a significant impact on the national economy. The Philippines Overseas
Employment Agency sets a standard employment contract stipulating the monthly salary
of seafarers. This is comparatively low in international terms and therefore appears
attractive in the profit-oriented globalised shipping industry.
The lowest-ranked Filipino seafarer, a messman, earns about 800 dollars a month
plus overtime. Officers get as much as 8,000 dollars a month -- about 15 times higher
than the average office executive in Manila.
The supply of trained Filipino seafarers is greater than the demand. Those in
search of work must try their luck among the 360 manning agencies in Manila. This
process can be costly and may oblige them to spend time away from their families.
An article in Tinig ng Marino (Dec 2006 entitled Migrant Workers Forum
Triggers Moves to Respond to Seafarer oes, Officer Shortage cited a recent forum of
the National Anti-Poverty Commission Formal Labor and Migrant Workers (NAPC
FLMW) sub-sector regarding policies on Filipino seafarer trainings which has triggered a
concerted effort among key players in the maritime industry to respond to the present
woes being experienced by Filipino seafarers as it relates to the global officer shortage.
Following the NAPC-FLMW dialogue, CMAP, UFS and several other concerned
players in the maritime industry have put their heads together and maximized the output
of the productive forum by coming up with two major resolutions to respond to the most
pressing problems that the maritime industry is experiencing shortage of officers, and
burdensome training and documentation requirements on Filipino merchant marine
officers. Aside from these pressing problems, recent graduates of maritime schools, face
competition for jobs. Of the 25,000 ordinary and able seamen who graduate annually,
only 8,000 to 10,000 find the job within a year.
Difficulties with Contracts
Despite the existence of contracts and a compulsory minimum wage, seafarers
often encounter problems. These include illegal demands for placement fees, delayed
payments, contract substitution onboard, early termination of contract, endless litigation
on compensation, age-limit restrictions, blacklisting, and unnecessary retraining
demands.
Problems with remittances
There are echoed complaints by other seamen that manning agencies do not remit,
or remit delinquently, their contributions to the Social Security System. "Manning
agencies will only remit [Social Security System payments] if seafarers want to apply for
a loan. Money is also a hot issue in the shipping industry," said by Former Foreign
Affairs undersecretary Merlin Magallona.
For his part, Tommy Ita-as of the Seaman's Church Institute in Philadelphia
recommended that manning agencies should be required to have an allotment plan that
would ensure the remittances do not take more than four days to transmit. This, he said,
should eradicate, or at least minimize, the practice of "intentionally delaying" remittances
to the families of seafarers.
Other Issues
The globalization of the shipping industry has resulted in the displacement of
Filipino seafarers by crew from other nations, such as China.
Jesuit chaplain Fr. Roland Doriol of Apostleship of the Sea (AOS)-Cebu
chaplaincy, quoting a Filipino captain in Hong Kong, said the country should further
"improve training and education, and insist on discipline for future seafarers."
The seafarers, ranging in age from newcomers in their early twenties looking for
their first job, to long-time veterans in their 40s and 50s hoping to get back to sea after
months or years off, are joined by young men sent out by the manning agencies.
These "headhunters" quietly cruise through the throng holding up notices of employment.
"Looking for chief officer, [US]$2,525 a month, 6-12 month contract." "Second officer,
$2,400, 6 months, Aramco oil tanker." "Looking for cook, knows European cuisine,
aboard tanker, $1,650 monthly." "Cargo handler $1,200 monthly, 6 months."
The seamen are clearly happy that the work exists and that Filipino seafarers are highly
valued by ship owners worldwide. But as individuals, they feel as if they are left out of
the loop, that nobody cares about their plight. Otherwise, how is it that they are left on
their own to navigate a system of red tape that makes little sense to even the ones who put
it all together?
The IMO-STCW of 1995 requires that all seafarers around the world obtain
certificates in addition to their three- and four-year diplomas from maritime schools,
certificates that show that they are properly trained and capable of handling the various
jobs they must perform on board ship. The IMO tasks individual governments with the
job of issuing the certificates. While everyone agrees that standardization of the maritime
industry is a good idea, the bottom line is that the costs to the individual seaman are out
of control. "I'm complaining about the money, not the courses," said the man from Cebu.
"We know that the seaman must have continuous training. We're against the cost.
Nobody cares for the seamen; they only care about how to get money out of the
seamen."
"The government needs to be more vigorous in busting manning agencies," he
says. "It's not a priority right now." Wilkins, though, says that the seamen can be their
own worst enemies, often applying for jobs with manning agencies without knowing
what is required to actually get the job.
MEMBE STATES of the International Maritime Organization IMO , including
the Philippines, will adopt changes in Manila this week changes that will upgrade the
seafaring profession. ice-President Manuel oli . de Castro, Jr., who was guest of
honor at the start of the convention, said the amendments will ensure safety and security
in the maritime environment... e hope to protect our local seafarers from the evident
piracy.
The IMO said the conference will consider draft resolutions relating to trainees
aboard ships, attracting new entrants to and retraining seafarers, promotion of the
participation of women in the maritime industry and standards of training and
certification and ship manning.
The Department of abor and Employment has said that the Philippines supplies
one-third of the worlds shipping manpower. There is no clear answer but a hint may be
gleaned from the remarks of International Maritime Organization IMO secretary-
general Efthimios E. Mitropoulos, who on Monday called Filipino sailors the unsung
heroes of the industry that carries most of the world trade in goods.
At the opening of the conference to amend some of the provisions of the
International Convention on Standards of Training, Certification and atchkeeping for
Seafarers STC , Mitropoulos said the international community should pay tribute to
the Filipino seafarers.
Here we are, first and foremost, to recognize the contribution of the Philippines
to shipping and the international seaborne trade and pay our due tribute. [ e also like to
pay due tribute to Filipino seafarers, past and present, wherever in the world they may be
at this very moment, facing the elements, unsung heroes of an unsung industry, he said
at the opening.
Filipino seamen, according to the latest figures from the Department of abor and
Employment, account for more than 2 percent of . million mariners worldwide, the
single biggest nationality bloc.
OF remittances total . B in first 4 months
More overseas Filipino workers OF s send money to relatives in the
Philippines as the global economy gradually recovered from the recession, the central
Bank said ednesday.
BSP Gov. Amando Tetangco Jr. said in a statement that a steady demand for
Filipino workers abroad and the expansion of bank and non-bank service providers to
capture a larger share of the global remittance market propped up the OF remittances.
The Asean-Australia- ew Zealand Free Trade Agreement, which came to force in March
would spur more job opportunities for Filipino nurses and engineers in the free trade
zone, the BSP said.
Central bank data showed that the number of commercial banks established tie-
ups, remittance centers, correspondent banks, branches and representative offices abroad
amounted to 4,4 as of March from 4, 2 at the end of 2 .
The BSP has upgraded its growth forecast of OF remittances to percent from
percent, owing to the strong demand for Filipino skilled workers.
ast year, remittances went up by .4 percent to a new record level of . 4

billion from .42 billion, exceeding the revised 4-percent growth forecast by the
Central Bank.
The Philippines has called on the Asia-Pacific heads of maritime safety agencies
to come up with the renewed cooperative measures in facing new challenges in the
maritime sector.
Transportation and Communications Secretary Anneli ontoc has stressed that
continuing piracy problem off the coast of Somalia and the Gulf of Aden continues to be
a concern for the major shipping countries including the Philippines.
ontoc added that the effect of global warming and climate change has started to
be felt in the maritime environs and called on maritime regulators to further strengthen
greenhouse effect reduction measures in the shipping industry.

SYNTHESIS
Based from the articles that has been gathered, it can be gleaned that shipping
owners, crisis after crisis or not, would still look for Filipino seafarers because they are
highly trainable, fluent in English, hardworking, have dedication and discipline, flexible,
reliable and loyal, are good followers, patient and are capable of sacrificing their lives,
though they are working for a less salary. Thus, The Philippines is the largest supplier of
seafarers in the global labor industry, but still, only 8,000-10,000 out of 25,000 graduates
yearly find jobs.
Most of the maritime graduates lived in provinces which is why it is costly to stay
in Manila to find a job or a reliable manning agency. As a result, most of them end up
working in other fields. One solution to this problem is the creation of a website, made
especially for seafarers. WWW.seajobstreet.com is an answered prayer for those
seafarers who are having a hard time finding jobs and anything related to it. All the
manning agencies can be seen in this website.

Shortage of officers, burdensome training and documentation requirements of
Filipino merchant marine officer are some of the problems in the industry. MTC and
CHED have started the bridge course for Engineering graduates and students to fill in the
shortage of officers. Under ME and EE, they must take short courses for deck and marine
officer. After passing the exam they will be allowed to board ship.
For Manning Agency to be known by seafarers, they must advertise their
company by going to nautical schools and training centers. They should conduct job fairs
and seminars. They could give fliers outside maritime schools, training centers and
government agencies that are connected to maritime industry. Putting up a website is a
big help of advertising but for small time player in the industry, it would really be
expensive however, in the long run it would still be an advantage for them. It is the
easiest, fastest and cheapest way that seafarers could reach the agency they could get
details and send resumes through online. An agency aims to hire competent seafarers but
they should show evidence for them to be prominent high salary, high rate of hiring and
long term contracts should be presented to competent graduates. Thus, the agency is
assured of a pool of highly-skilled seafarers.

Chapter 3
RESEARCH METHODOLOGY
The authors will be using the following methodology to help them generate an
excellent company study.
Input Process Output
- Financial Statements -Porters Five forces

- Customer Feedback Model
- Operational Business Process -Financial Ratios - Strategic Business Plan
Flow -SWOT Analysis
- Industry Analysis -Kepner-Tregoe
(decision analysis)
Model
Table 3.1 Conceptual Framework
Input
a) Financial Statement
The authors would ask for the companys financial statement to help them
asses the viability, stability and profitability of the company. This data would be
very useful for the authors in the preparation of financial ratios.

b) Customer Feedback
The authors should know how to keep a companys customers and to
retain their revenue contribution. First and foremost it aims to prevent customers
from going to other competitors by identifying areas of improvement. It costs less
to keep an existing customer than to acquire a new one; thus having a customer
retention strategy is common sense. This will be done by conducting an interview
with internal and external customers.
c) Operational Business Process Flow
The authors would gather detailed information, organized to meet the
needs of each area of business or function.
d) Industry Analysis
The author would draw together information about the changes in the
environment to create a study that is attuned to the present day environment
through reading news papers, articles and journals.
Process
e) Porters Five Forces Model
Five Forces Analysis helps the authors to contrast a competitive
environment. It has similarities with other tools for environmental audit, such as
PEST analysis, but tends to focus on the single, stand alone, business or SBU
(Strategic Business Unit) rather than a single product or range of products.
f) Financial Ratios
The authors will make financial ratios to quantify many aspects of the
company. It is categorized according to the financial aspect of the business which
the ratio measures. Liquidity ratios measure the availability of cash to pay debt.
Activity ratios measure how quickly a firm converts non-cash assets to cash
assets. Debt ratios measure the firm's ability to repay long-term debt. Profitability
ratios measure the firm's use of its assets and control of its expenses to generate
an acceptable rate of return. Market ratios measure investor response to owning a
company's stock and also the cost of issuing stock.
g) SWOT Analysis
The author would list down all the strengths, weaknesses, opportunities
and threats, to come up with an excellent analysis. This simple but extremely
useful tool is designed to help the authors to identify the factors that affect the
company and determine the possible courses of action it can take to achieve an
objective.
h) Kepner-Tregoe (decision analysis) Model
This will help the authors to find the best possible choice based on
achieving the outcome with minimal negative consequences. It is marketed as a

way to make unbiased decisions in that it is said to limit conscious and
unconscious biases that draw attention away from the outcome.
Output
i) Strategic Business Plan
The authors will generate a strategic business plan to help them provide
recommendations for the company. It is an Internal document that outlines an
organization's overall direction, philosophy and purpose, examines its current
status in terms of its strengths, weakness, opportunities, and threats, sets long-
term objectives, and formulates short-term tactics to reach them.
Chapter 4
XYZ MANNING COMPANY: A NEW STRATEGIC BUSINESS PLAN
RESULTS AND ANALYSIS
Executive Summary
A strategic business plan was made in this study. The plan was realized to
address the rising needs of XYZ Manning Company for profit maximization. In order to
craft the strategic business plan, different principles of engineering business management
were applied such as marketing, financial management, management information system
and strategic planning and management. Different models and tools for analysis were
used: Porters five forces, SWOT Matrix and Kepner-Tregoe Decision Analysis model to
carefully analyze and study the whole business situation.
Introduction
This chapter entails all the engineering management tools that have been used by
the authors to analyse vigilantly the situation of the XYZ Manning Company and to come
up relevant results which can be relatively helpful in coming up with a recommendation
for the companys improvement. This chapter is made to support the strategic business
plan by applying the Engineering Management tools.
Strategic Planning and Management principle has been used in this study; (1)
Porters five forces is about the microenvironment factors of the current situation of XYZ
manning company; (2) Financial ratios is computed to show the companys financial
capabilities for the proposal strategies; (3) SWOT matrix is used for thorough
understanding of the companys strengths, weaknesses, opportunities, and threats to
determine the courses of action to achieve the objective; and (4) Kepner-Tregoe decision
analysis which is used to find the best possible choice based on achieving the outcome
with minimal negative consequences.
CAPSTONE PROJECT RESULT AND ANALYSIS
Conceptual Framework
- Financial - Porters Five Forces

Statement Model
- Customer feedback - Financial Ratios - Strategic Business
- Business Process - SWOT matrix Plan
Flow - Kepner-Tregoe
- Industry Situation decision analysis
model
Figure 4.1 Input-Process-Output Model
The above figure illustrates the framework of the study. It graphically shows the
flow of the study from raw data up to a crafted strategic business plan.
I. INPUT
There are quite a number of data that the authors have acquired and treated using
the different tools defined in the IPO model. Such inputs are the: Financial statement,
customer feedback, business process flow and industrial situation.
A. Financial Statement
The authors acquired the financial statements of year 2008 and 2009 of XYZ
Manning Comapany for financial assessment and analysis.
B. Customer Feedback
Feedbacks from internal customers were gathered by the authors through verbal
interviews and conversations with the stand-by/ on-duty ranking seafarers, particularly
the deck and engine cadets. In the summary of the interview, the authors found out that
the main reason for customers retention is found in the strong bargaining power of both
internal and external customers.
Since the external customers-principals share the power to demand quality
seafarers from XYZ Manning Company, they have no choice but to seek officers in order
to retain the vessels and manning transaction of the agency with the principals. However,
there is a scarcity of officers in the industry due to different factors, some are engaged in
career crossover, while other factors include economic issues such as foreign economic
recession and local economy slowdown; lastly, the greatest factor of all lies in the
agencys internal customers, who have strong bargaining powers that hold the neck of
XYZ Manning and paralyzes their power in the industry. The officers have the power to
demand more from the company agency. More so, the ex-crews/ officers of XYZ
demands a special condition that makes their retention dependent to the favor given by
the agency, and that is to employ their ranking relatives. That is the main reason why
ranking crews are dominant in the pool instead of the officers.
C. Business Process Flow
The business process flow shows the step by step procedures of the companys
business operations from recruitment up to the disembarkation of the crews.(see
appendices for current business process flow page 117)
D. Industry Analysis
The authors gathered data from the Philippines Overseas Employment Authority.
The data includes the statistics of sea-based deployment from year 2007-2008, and those
who were awarded best manning agencies. (see appendices for datas page121)
II. PROCESS
The principles of marketing, financial management, management information
system and strategic manning were applied in treating the input-raw data to be analyzed
though the use of different techniques Porters five forces model, Financial Ratios,
SWOT Matrix, Kepner-Tregoe Decision Analysis Model.

A. Porters Five Forces Model
The data and information gathered from the company and government/industry,
as mentioned and explained in the input stage were used as inputs in the Porters Five
Forces model. Through this model, the microenvironment assessment of XYZ company
is made.
Figure 4.2 Porters Five Forces
Figure 4.2 shows the generated current situation assessment of XYZ Manning Company
Analysis from Porters five forces model
The Competitive Rivalry is strong since the company owns a very small market
share in the industry; thus giving major players much favour and opportunity to
make a strong brand. This contributes to a very small portion of pools and
incompetent offers from principals to the recruits. Intense competition puts strong
downward pressure on branding.
The Supplier Power is strong due to the fact that there is a shortage in high-
ranked officers needed in the industry, relevant in the very high competitive
rivalry in the industry and career crossover. Hence, the bargaining power of the
seamen is high and pulls the bargaining power of the company downward.
The Buyer Power is strong. This is evident in the fact that the pool of existing
crew that the company maintains receives out-dated trainings, sufficient only to
the existing principals requirements. Thus, the principals could bargain for lower
prices.
The Threat of Substitution is strong since principals have the ability to withdraw
tie-up to the company and transfer to other agency. This is attributed by the high
rate of piracy and competent offerings from industry rivals.
The Threat of New Entry is low since compliance to standards and to certified
bodies and law mandates/ government agencies can be feasible. Although
pioneers in the industry are dominating, if given excellent training procedures and
manual, a small time player could produce a trained and competitive pool of crew.
Refer to figure 4.2

Porters Five Forces Conclusion
Based on the microenvironment assessment of XYZ Manning Company using
Porters Five Forces, the problem of the company is its weak bargaining power with the
customers. Moreover, there are multiple factors that directly affect the growth of
company. There somewhat uncontrollable factors include sea-based manpower shortage,
career crossover, industry trends, and high industry demand for internal customers. On
the other hand, there are also controllable factors that XYZ can focus on order to create a
balance between the effects of both uncontrollable factors and controllable factors. They
can craft strategies on exploiting the controllable factors and convert the uncontrollable
factors into anticipated situations that can make them combat the possible dilemmas.
Bargaining power of customers, threat of substitution, threat of new entry and
competition are the controllable factors that XYZ Manning Company can make use of, in
designing such a strategy.

B. Financial Ratios
The Financial ratios are calculated in order to assess the financial stability and
situation of XYZ Company. (see appendices for complete financial ratios page113)
Current ratio = Current assets

Current liabilities
= 178,753,473.00
127,152,963.00
= 1.41
***for every current liabilities,

there is 1.41 current asset available for payment of current obligation.
Total asset turnover= sales
total assets
= 54,047,790.00
184,018,662.00
= 0.29
***for every Php 1.00 of total asset,

It generates sales of 0.29 centavos.
Debt ratio= total liabilities
total assets
= 131,030,881.00
184,018,662.00
= 0.71
***0.71 debt and 0.29 equity

Table 4.1. Financial Ratios
Based on the financial ratio of the company, it could be construed that XYZ Manning
can sustain future developments and possible business spin-off. This is supported by the
current ratios, debt ratios, and total asset turnover. Since the current ratio of XYZ
Manning is 1.41, the company is solvent in such that they possess quick cash and can
sustain the future need of funds. Also, the company has 71% ability to pay its short-term
debts based on the probability of the debt ratio generated from the total debts and total
assets. The total assets turnover of XYZ Manning shows that for every Php1.00 that the
company acquires as assets the outflow of cash is compensated through its sales/services
by 0.29 .
C. SWOT Matrix
The use of SWOT matrix is to define the strength, weaknesses, opportunity and threat of the company. Through this SWOT-
driven strategies can be generated.
STRENGTH WEAKNESS
Non-competitive salary
Limited benefits offered
Minor player in the industry
Convincing power No promotional efforts
Good relationship among Lack of Knowledge Management
the crews No Training program
Good relationship to
principals Incomplete line of vessel type
Financially stable Low competitive pool of crew
No company website
Low deployment rate
Operations are not standardized
Since there is an increase in # of seafarers every year and there is a
opportunity for Filipino seafarers, it is very applicable for the compa
provide knowledge management and special training programs to ma
competitive crew, though most of them are fresh graduates.
For 35 years in the industry, Adapting to technology is very helpful in any company; application
XYZ manning maintains a automated system would ensure that the company to have an easy
Increasing # of seafarers great convincing power to systematized work. Website development is a necessity especially
Job opportunities are high to assure crew a better chance agencies, since most of seafarers are coming from different provinces
Filipino seafarers since there is a high job principal are from other country. Having a companys website would ser
Political factors: all recruitment opportunity for Filipino online calling cards where it provide an online application and showin
should be done in their own seafarers. companys profile.
PORTUNITY
offices. Since there is a political law Training crews for different lines of vessel would help increase the numb
Adapt to technological changes that has been set out, there vessel to be manned and it will proportionally increase the numb
will be an equal chance for deployment.
all the manning companies If the company produces a competitive crew which can man any ty
to be a choice of seafarers. vessel, there will be an increase in deployment which will help in incre
the companys market share.
Giving extra benefits for crews will attract seafarer applicants and will
on retaining acquired crews.
Withdrawal of crew by the Though XYZ manning is Providing adequate trainings for acquired crew would make them
principal experiencing intense more competitive, so it will decrease the # of withdrawal of crew
Intense business competition business competition, by the principal and producing competitive crew will help the
High demands of principals crew withdrawal of crew by the company to survive in the intense business competition.
requirements principal, poor bargaining Recessions are uncontrollable and external factors could be
Recession: decrease of $ value power, shortage of high- addressed by crafting defensive strategies.
Principals have bargaining power ranked officers and Providing extra benefits will attract high-ranked officers though
in salary scale recession could be addressed there is a shortage in the industry.
Affiliates of acquired crew through continuous
Shortage of high ranked officers improvement in good
relationship with the crews
and principals by complying
THREAT
in their requirements. Good
convincing power could
help the company to assure
the crews and principals that
they are meeting the
standard requirements.
Assuring that the affiliates
of acquired crews will be set
on board in time.
Table 4.2 SWOT Matrix

SWOT-DRIVEN Strategies
Strengths-Opportunities
XYZ Company is a financially stable manning agency. Conducting seminars and
job fairs are ways to attract the increasing number of seafarers who are in need of a job.
Through this they can aid the problem of shortage of high ranking-officers.
Having good communication skills, a good working relationship and good
convincing power, they can practice this in attracting potential customers as well as
retaining the old ones.
Adapting to technological changes such as website development is also an option
to consider. With this the company can use this to attract these customers (internal and
external) by providing them the necessary information to what they can get from the
company and to what the company can offer to them.
Strengths-threats
Being financially stable, XYZ Company should invest in upgrading/improving
their training facilities to serve the purpose of creating competitive, and qualified high
ranking officers to service/cater the principals beyond their expectations and to guarantee
them full satisfaction. In doing so, good relationship between the company and customers
(internal and external) will continue to flourish. With these the company will have the
opportunity to raise their bargaining power and also uplift the stand of the company in the
industry.
Opportunities-weaknesses
Because of the increasing number of seafarers who are looking for a job, XYZ
Company is engaging itself in adapting to technological changes to address this problem.
Currently, XYZ Company is developing new strategies such as website creation, training
improvements, human resource development and by giving extra benefits, allowances
and incentives. These job opportunities are the companys target not only to increase
deployment rates but to increase the market share of the company, to produce competitive
crews, and to retain acquired and ex-crews as well.
Threats-weaknesses
XYZ Company is going to conduct adequate trainings to produce quality seafarers
to make them more buyable in the industry. In doing so, principals will no longer
withdraw its tie-up with the company. Also, by producing competitive seafarers, the
company will have the privilege of having bargaining power on their side, thus they can
give more benefits to their crews and they can attract high ranked- officers as well.
Strengths-weaknesses
XYZ company is financially stable, therefore they can engage in promoting
training programs that would benefit both internal and external customers. Also, with
their good convincing power, they can introduce knowledge management to internal
customers for them to be well equipped and ready to all adversities.

Opportunities-Threats
With the vast increase of seafarers and with tight business competition, XYZ
Manning Company can penetrate the industry by providing training programs to
unemployed seafarers. Facing the problem of shortage of high-ranked officers this would
be address and withdrawals of crew by the principal would be eliminated
Matrix Analysis
The strengths of XYZ Manning Company can be found in the functions of its
good customer relationship and finances. These strengths can be sufficient to combat the
weaknesses and threats so long as it is maximized by analysis to any opportunity that
they might possibly have.
Based on the SWOT Driven-strategies the following alternatives were proposed
for considerations.
ALTERNATIVES
Strategy A: Improve external customer relationship.
The following are the plan of action to achieve the above strategy: Completing Vessel
Type, Operation standardization, Brochure, Training Program.
Completing Vessel Type
XYZ Manning aims to increase its principals and vessels, the target of which
are the following:
1. Passenger
2. Container
3. Tanker
In order for XYZ Manning to attract Principals and Vessel Owners, the
company has to invest on recruiting new crew and on providing training to its current
cadets, focusing on the operations of the target vessel types since the increase of
external clients is a function of the internal clients. When there is availability in the
manpower, the marketability of the agency increases, as well as its bargaining
powers strength. Thus, the maximization of profit and minimization of cost will be
relevant.
Operation standardization
In order for XYZ Manning to attain above quality service, it has to standardize
its operations and procedures first. Continuous improvement or Kaizen is a powerful
tool to make this objective happen.
As of April 2010, the Business Process Re-engineering plan has been

implemented and is still on-going. The 5S of Good Housekeeping was implemented
and data warehouses were established both electronic and physical data warehouse.
The whole process of manning operation were mapped and documented for
standardization from the recruitment process up to the debriefing of crews. Training
material/manual is crafted for the refresher course to be offered free for the cadets
waiting to be on-board. More so, the application of seafarers has been established
electronically through a program and an initial kiosk is built for this purpose.
The benefits acquired and to be acquired in the future through this project are as
follows:
Ease of access and retrieval of data

Minimization of errors in making electronic back-ups
Since there are two types of data warehouses built, the movement of the
documents will be controlled
Effectiveness in refreshing the cadets since manuals and handouts are free of
access for their reference.
The effect of effective training of cadets will result to better quality of service
rendered by them in the future when they go on-board. Thus, this will give the
external clients (principals and vessel owners) weaker bargaining power to
haggle over XYZ Manning cadets and will open opportunities to attract other
external clients. More so, the goal of penetrating the passenger, container and
tanker vessels in the future will have higher probability of achievement; and
The cost for all these developments plainly cover the basic wage for the system
developer and in-house programmers, time and effort, cooperation of the
organization from the top management down to the members, depreciated and
company used computer units, small portion of money for the office supplies and
dedication of all workers.
Training Programs
One-month Refresher Course/In house Cadetship Training
This month-long refresher course aims to review the cadets with the basics and
fundamentals of marine transportation and engineering. This will cultivate their
knowledge more and enhance the skills of the future officers. More so, this is an
avenue for better service and above quality line up of crews. This will open greater
opportunities in attracting principals and other vessel owners to entrust their vessels
and voyages to XYZ Manning.
The highlight of this projects advantages and benefits are as follows
Faster development of crews (from cadet to officer)/Future In-house officers;

Greater service to external clients/Customer Satisfaction;
Retention of External Customers;
Stronger bargaining power against principals where the wage rate of the crews
and the agency fee of XYZ Manning could be negotiated to higher rates; and
New external client attraction.
i. Passenger, Container and Tanker Vessel Fundamentals Training
Since the next target of XYZ Manning in the future is acquiring another three
vessel types: Passenger, Container and Tanker, it is significant to conduct training
regarding the fundamentals of the said vessels. In this way, XYZ Manning could harness
the skills of the crews and train them for future vessel types.
The benefits for this project are as follows:
1. In-house development of crews;

2. Stand-by pool of crews for future business with the target vessels in the future;
3. Internal customer retention;
4. Stronger bargaining power against internal customers;
5. Avenue for external customer retention and new external customer affiliation; and
6. Culinary Training for the Cooks
In view of the fact that XYZ Manning is manning Cooks, it is might as have them
trained for future plans of entering the Passenger Vessel. In this way, it is mutually
beneficial for both XYZ Manning and the Cooks to have the training since it can increase
the skills of the Cooks and will eventually pull the name of XYZ Manning on a higher
level. Besides, this kind of training could be optional and could be charged to the Cooks.
It could follow a study now pay later scheme through a salary deduction basis
program.
Brochure
Through the use of brochures, principals and seafarers will have an idea thus
raising awareness of the company such that:
It gives additional data or answer additional questions regarding the service that it
promotes;
It delivers needed facts, figures and other information necessary to aid interested
principals and seafarers; and
Its a great way to sell the company and its service to the principals and the
seafarers.
Strategy B: Improve internal customer relationship.
The following are the plan of action to achieve the above strategy: In-house
Seamans Loan, Website Development, Job Fair Participation, Acquiring New Pool of
Crew and Implementing Data warehousing.
In-house Seaman Loan
At present, the Seaman loan is an incentive from the principals to selected

officers to retain their service and loyalty to the agency or directly to the principal. The
loan is non-interest and is payable in two installment. The maximum loan given is $1500.
However, not all principals offer this kind of privilege, thus many of the crews transfer to
other agencies where the principals and the agents offers are way better than XYZ
Manning. In order to combat this and extend the retention of the crews especially the best
and experienced crews that XYZ Manning have, an in-house Seaman Loan is proposed.
The in-house Seaman oan is designed to lend the seafarers some amount under
necessities and inevitable occurrences. The loan is non-interest and interest type, payable
within four payroll months or depending on the amount and validity of the seamans
contract, salary deduction for light payment and lower risks of bad debts, and in this case,
all seafarers could apply regardless of rank***.
For the officers***, the loan is up to 35% of their monthly wage, tax and interest
free, payable within four payroll months salary deduction .
For the non-officers***, the loan is up to 20% of their monthly wage, tax free
with 2.5% interest and is payable within the validity of contract (salary deduction).
***The loan is funded by XYZ Manning and all officers and non-officer crews
are entitled for the loan so long as they are on board, or stand by crew waiting to be on
board within two months. The crews could only use the In-house Seaman Loan once in a
year and three times in five years. The purpose is to prevent the acquisition of bad debts
and to discourage the crews from having the habit of making loans for living.
Internal customer retention and stronger bargaining power against them;

External customer retention since it will attribute to the quality of the services
rendered to the external clients by the crews;
Attraction for new applicants and potential high ranked officers to be employed
under XYZ Manning; and
Additional Income for XYZ Manning since the non-officers will have to pay the
2.5% for every loan they acquire.
Website Development
With a website, the business is accessible to anyone, anytime, and anywhere,

allowing the management to reach your target audience, directly and effectively. It serves
as an online business card where internal and external customers can learn more about
XYZ Manning and to make that great first impression. It will also allow the seafarers to
send their applications online.
The website contains the following information:
Company Profile includes its History, Mission and Vision, Quality Policy,
Values and Company Location.
Services
About training and crew selection
Career and Job opportunity
Online application
Organizational chart
News and Achievements
Contact information and location
Job Fairs
For seafarers job fairs are the meat markets of the entry level job market.
Attending job fairs could give an edge for the company to recruit the best seafarers out
there its like one stop shopping. A good way to conduct a job fair is through
establishing affiliations with maritime and culinary institutions. It is an effective yet
inexpensive way of promoting the business and opening the opportunities for profit and
marketability.
Acquiring new pool of crew
Based on POEA statistics, there is roughly 5% of unemployed seafarers. The only

known reason is that their contracts were not processed. However, there is an opportunity
behind the statistics. Those 5% unemployed could be reached out through telemarketing,
emails and personal visits/invitations. If there could be a list of the unemployed seafarers
that XYZ Manning could purchase, it would be much easier at a cost of roughly PHP3.00
PHP30.00 per name. The advantage of doing this is having higher chances of getting
new recruits.
Data Warehousing
Data is necessary to be kept in both physical and electronic warehouses since all
documents/data/information gathered from both seamen and principals are relevant and
confidential.
a) Data Warehousing: Physical
The Physical Warehouse applies to all hard copies of documents, whether
acquired, printed, or distribution copy. Since the current set-up of the companys
physical warehouse is by cabinet filing, the risk for data loss is high due to the
low security it can provide. Thus, a safe keep of a vault is necessary and is
strongly recommended as a new shelter for the documents.
Documents must then be arranged, either alphabetically, or by rank, or
coded. Folders or envelopes should be colour-coded to put in order; therefore it
will be easy to distinguish the file of different positions or ranks.

b) Data Warehousing: Electronic
The Electronic Warehouse applies to all electronic or soft copy of
documents. Although there is a vault available, soft copies must be kept not only
for electronically acquired but also for the acquired hard copies. It is
recommended that the documents such as certificate, contracts, forms and other
physical/printed materials be scanned in order to maintain back-ups and secured
sources of information.
Types: -Database for crew and principal information
-Program for automated application (electronic application form for recruitment)
-Forms for reports from crew (monitoring form) and principal
D. Kepner-Tregoe Decision Analysis Model
The Kepner-Tregoe Analysis model generates an objective by weighing
alternatives quantitatively and qualitatively with adverse consequences or risk analysis.

Comparison of Alternatives
ALTERNATIVES
OBJECTIVES
STRATEGY A
MUST INFORMATION GO/NO
Systematize Operations within 1 year It can be done in a year GO
No increase in manning fee and VIP
External customer retention GO
treatment
Internal customer retention Give additional incentives and benefits GO
increase deployment by 30% Achievable in 5 year time frame GO
WANTS WEIGHT SCORE Wt x Sc
Operation standardization by creating
Adapt to technological changes 8 9 72
systems design
Knowledge Management 6 Standardized training program 7 42
Increase learning curve of crews 4 Provide quality circles 5 20
Acquire new external and internal customers 9 Invest on brochures 9 81
increase internal customer satisfaction 7 Cadet training program 7 49
increase # of vessels manned 10 Completing line of vessel type 6 60
make profit as function of deployment 9 acquiring new external customer 6 54

378
Table 4.3.a Kepner-Tregoe Decision Analysis

STRATEGY B
INFORMATION GO/NO
It can be done in 0.5 years GO
no increase in manning fee GO
give additional incentives and benefits GO
achievable in 4.5 years time frame GO
SCORE
Website development 6 48
application of data warehousing: physical and

5 30
electronic
Providing periodic trainings and seminars 0 0
Participating on Job fairs 8 72
In-house seamans loan (benefits) 9 63
0 0
acquiring new pool of crew 8 72

285
Table 4.3.b Kepner-Tregoe Decision Analysis

Based on the results on the above Kepner-Tregoe, the authors chose strategy A,
having the highest total weighted score compared to strategy B.
To further analyze the selected strategies, the authors conducted a post problem
analysis to determine potential risk of consequences for the proposed solutions.
Below is the table showing Potential Problem Analysis:
Potential Problem Analysis
Choose Strategy A
Risk Factors Weight Score Wt x Sc Action Plan
employees might encounter in operation hands-on seminar to all employees in operating
database 3 5 15 database
external customers have a tendency to abuse
the company 4 6 24 Fair negotiation
low learning curve of seafarers 7 8 56 Training and Practice adjustments
piracy of developed seafarers 6 9 54 application of contract
marketing & promotional aspect would be given
9 8 72
shortage of quality seafarers more focus
lack of employees in handling transaction 7 5 35 Acquiring knowledgeable employee
Table 4.4 Potential Problem Analysis
Based on the above Potential Problem Analysis (PPA) result, these risk factors
could be a guide for management in its implementation
The chosen alternative was used by the authors in developing a New Strategic
Business Plan as shown Appendix page 46.

CONCLUSION
Based from all the IE and EMG Tools the authors have used, they were able to
strategize the correct things in creating a New Strategic Business Plan to improve the
external customer relationship that focuses entirely on XYZs Financial, Operational, and
Marketing aspects.
The authors were able to develop the Strategic Business Plan that best suits XYZ
Company very well.
With the help of EMG Tools such as Kepner-Tregoe Decision Analysis and
SWOT Analysis in particular, the authors have squeezed out all possible risk factors that
might affect the company when the New Strategic Business Plan is implemented. The
authors are self-assured with their action plans if ever these risk factors occur. (See
appendices for proposed strategic business plan page 53)

Chapter 5
RECOMMENDATIONS
The foundation of Manning industry are based through deployments. Companies
are struggling it out to be the best and they are competing not only for prestige but for the
sake of having the highest position possible in the market because when a company is on
top a lot of Principals will go to them, meaning a lot of job opportunities not only for the
company but for the seafarers as well.
For the past 35 years in the Manning industry, XYZ Company has been stagnant
in the field of manpower. There are lots of opportunity losses that weakened their power.
Since they have been profitable, the complacency and reluctance to change made the
progress of the business gradual. Thus, the authors would like to recommend the
strategies that have been derived from this study. (See appendices for proposed strategic
business plan page 53)
Based on the most recent data the authors have acquired, every year XYZ
Company managed to increase their profits. However, they maintained an almost
negligible share in the market that gives them opportunity losses. Thus, XYZ Company
must consider these two factors: maximization of vessels of existing Principals and
acquiring new Principals in order for them to increase their share and maximize their
profits.
These two factors were identified by applying Kepner Tregoe Decision Analysis
in XYZ Companys current situation.
Maximization of vessels of existing Principals is one of the best factors to look at
because XYZ Company has already a mutual understanding between them. It will be easy
for them because they have a direct contact with their Principals, the flow of
communication and interchanging of ideas is much easier. XYZ Company has 6
Principals and out of this, they have acquired 15 vessels all in all.
The authors conducted a thorough research and found out that one of XYZ
Company Principals have vessels manned by other manning agencies. If XYZ Company
can man those vessels, the deployments will rise and job rates will increase thus putting
them to a competitive stand.
Acquiring new Principal would be the last factor for XYZ Company, though its
not easy but nevertheless attainable.
These factors will surely help XYZ Company increase not only their profit but
most importantly, increase the numbers of seafarers deployed.
On the other hand, there are still other options that the authors did not include in
the study, hence it is recommended that future researchers should include the customer
analysis and view the business with the external and internal customers point of view.
APPENDICES
EXECUTIVE SUMMARY
XYZ Shipping Service Inc. is one of the pioneers in the cargo shipping industry in the
Philippines founded by Francisco C. Delgado in the 1960s. One of its businesses is the
Manning and Crewing Agency. For more than four decades, XYZ Manning had
maintained its diligent pool of crews to cater its clients high-standard requirements.
OBJECTIVE:
To increase profitability and branding

To systematize operations
To retain and increase both internal and external customers (crew and principals)
MISSION
To render inimitable service to Principals and Seafarers that abides standards of

excellence, efficiency and integrity, utmost and distinctive in the manning
industry complying with standards.
To produce qualified and competent seafarers in order to meet and surpass
Principals expectation. Every seaman (officer/rating) has taken his Standards
of Training Certification and Watch keeping (STCW) for seafarers in accordance
with International Maritime Organizations (IMO) Rules and Regulations and we
see to it that all our deployed seafarers are ready to be 100% productive and
become assets to the crew or company that they will join.
To provide equal and fair opportunities to our seamen by ensuring them that they
are the most important assets and we are committed to their total personal and
professional growth by attending/addressing to all their needs.
To encourage the staff and crew to practice professionalism so that we
can endlessly serve our clients and principals with the highest degree
of efficiency.
We aim to be the best, satisfactory rating is not enough. In doing this we will
continually pursue business improvement by tapping to the changing needs of the
environment, seamen and our Principals.
Manning industry is not only by complying with standards but surpassing these
measurements to achieve unparallel service for the main goal of being the best.
VISION
XYZ Manning is dedicated to achieve utmost excellence in attaining quality in its desired
field of business as a manning agency and to be recognized as one of the best manning
agencies in the world committed to absolute quality performance, adhering to the
requirements and expectations of its principals by administering their vessels with
qualified and competent crew, sufficed with skills enabling them to defy any adversities
in the sea.
QUALITY POLICY
XYZ Manning is establishing a system of quality with the objectives of continuous

improvement of the quality of services. We are committed to business excellence as we
adhere to the following principles:
CUSTOMER SATISFACTION
We employ only the credible and efficient seafarers that will exceed the requirements and
satisfaction of our principals.
KNOWLEDGE MANAGEMENT
We are aware that the proper training of each employee is a precondition for achieving
and maintaining the required quality. This is achieved through continuing education,
targeted training and incentives.
The management ensures the professional and personal development of all employees,
with the day-to-day application of methods and techniques to monitor the state of the
environment and natural processes. The management exercises the principles of business
quality through the constant improvement of processes and the releasing of creativity,
talent, positive energy and motivation of all who work with us.
CONTINUOUS IMPROVEMENT
The task of all employees is to ensure and constantly improve the quality of our services
and the entire process of operations and procedures, which we achieve through learning,
sharing, benchmarking and participation in continuous improvement programs,
particularly the Total Quality Management which we owe our success and tenure to.
MARKET SHARE: AVERAGE YEARLY DEPLOYMENT (2007-2009)
MARKET SHARE (AVERAGE YEARLY DEPLOYMENT)
16.98%
10000-20000 Deployed
5000-9999 Deployed
15.92% 1000-4999 Deployed
500-999 Deployed
0.05%
100-499 Deployed
0.06%
1.59%
11-99 Deployed
1.48%
39.14% 1-10 Deployed
11.35%
186 Deployed
15.09%
Figure 2. Market Share per Average Yearly Deployment
XYZ Manning deploys an average of 186 seafarers per year (0.06% market share) with
the lowest deployment of 153 seafarers for the year 2007, 181 seafarers for the year 2008,
and the highest deployment of 215 seafarers for the year 2009. Thus, there is a direct
proportion in the trend of the yearly deployment as it constantly increases each year with
18.30% for 2007-2008 and 18.78% for 2008-2009.
INDUSTRY SHARE: AVERAGE YEARLY DEPLOYMENT (2007-2009)
INDUSTRY SHARE (AVERAGE YEARLY DEPLOYMENT)
22.94%
Landbased
Seabased
77.06%
Figure 3. Market Share per Average Yearly Deployment
The above figure shows the yearly industry share of both sea-based and land-based
overseas workers averaging from 2007 2009. Sea-based deployment has an average of
22.94% with a 26.30% increase for 2008-2009 deployment.
However, in terms of processed contracts of sea-based overseas workers, there is a

depletion of 5.10% that attributes to the number of unemployed workers. Figuratively, a
total of 458,757 contracts were processed in 2008, while 435,515 were processed in
2009. Therefore, the discrepancy of 23,242 unprocessed contracts attributes to the 5.10%
unemployed sea-based workers.
TARGET MARKET
XYZ Manning has two customers:
2. Internal Customers Crew/Seafarers

XYZ Manning aims to increase its pool of crews particularly the officers:
Master
Chief/1st Officer
2nd Officer
3rd Officer
Chief Engineer
1st Engineer
2nd Engineer
3rd Engineer
3. External Customers Principals and Vessel Owners
XYZ Manning aims to increase its principals and vessels of which the
target vessel types are the following:
4. Passenger
5. Container
6. Tanker
In order for XYZ Manning to attract Principals and Vessel Owners, the company has to
invest on recruiting new crew and on providing training to its current cadets with the
operations of the target vessel types since the increase of external clients is a function of
the internal clients. When there is availability in the manpower, the marketability of the
agency increases, as well as its bargaining powers strength. Thus, the maximization of
profit and minimization of cost will be relevant.
OPERATION STANDARDIZATION STRATEGY

In order for XYZ Manning to attain above quality service, it has to standardize its
operations and procedures first. Continuous improvement or Kaizen is a powerful tool to
make this objective happen.
As of April 2010, the Business Process Re-engineering plan has been implemented and is
still on-going. The 5S of Good Housekeeping was implemented and data warehouses
were established both electronic and physical data warehouse. The whole process of
manning operation were mapped and documented for standardization from the
recruitment process up to the debriefing of crews. Training material/manual is crafted for
the refresher course to be offered free for the cadets waiting to be on-board. More so, the
application of seafarers has been established electronically through a program and an
initial kiosk is built.
The benefits acquired and to be acquired in the future through this project are as follows:
Ease of access and retrieval of data

Minimization of errors in making electronic back-ups
Since there are two types of data warehouses built, the movement of the
documents will be controlled
Effectiveness in refreshing the cadets since manuals and handouts are free of
access for their reference.
The effect of effective training of cadets will result to better quality of service
rendered by them in the future when they go on-board. Thus, this will give the
external clients (principals and vessel owners) weaker bargaining power to
haggle over XYZ Manning cadets and will open opportunities to attract other
external clients. More so, the goal of penetrating the passenger, container and
tanker vessels in the future will have higher probability of achievement.
The cost for all these developments are plainly the basic wage for the system
developer and in-house programmers, time and effort, cooperation of the
organization from the top management down to the members, depreciated and
company used computer units, small portion of money for the office supplies and
dedication of all workers.
CUSTOMER RETENTION STRATEGY
INTERNAL CUSTOMER RETENTION STRATEGY
1. Training Programs
a. One-month Refresher Course/In house Cadetship Training
This month-long refresher course aims to review the cadets with the basics and
fundamentals of marine transportation and engineering. This will cultivate their
knowledge more and enhance the skills of the future officers. More so, this is an avenue
for better service and above quality line up of crews. This will open greater opportunities
in attracting principals and other vessel owners to entrust their vessels and voyages to
XYZ Manning.
The highlight of this projects advantages and benefits are as follows
Faster development of crews (from cadet to officer)/Future In-house officers

Greater service to external clients/Customer Satisfaction
Retention of External Customers
Stronger bargaining power against principals where the wage rate of the crews
and the agency fee of XYZ Manning could be negotiated to higher rates.
New external client attraction.
b. Passenger, Container and Tanker Vessel Fundamentals Training
Since the next target of XYZ Manning in the future is acquiring another three
vessel types: Passenger, Container and Tanker, it is significant to conduct training
regarding the fundamentals of the said vessels. In this way, XYZ Manning could harness
the skills of the crews and train them for future vessel types.
In-house development of crews

Stand-by pool of crews for future business with the target vessels in the future.
Internal customer retention
Stronger bargaining power against internal customers
Avenue for external customer retention and new external customer affiliation
c. Culinary Training for the Cooks
In view of the fact that XYZ Manning is manning Cooks, it is might as well better
to have them trained for future plans of entering the Passenger Vessel. In this way, it is
mutually beneficial for both XYZ Manning and the Cooks to have the training since it
can increase the skills of the Cooks and will eventually pull the name of XYZ Manning
on a higher level. Besides, this kind of training could be optional and could be charged to
the Cooks. It could be study now pay later through salary deduction basis program.
2. In-house Seaman Loan
At present, the Seaman loan is an incentive from the principals to selected officers to
retain their service and loyalty to the agency or directly to the principal. The loan is non-
interest and is payable for two installment. The maximum loan given is $1500. However,
not all principals offer this kind of privilege, thus many of the crews transfer to other
agencies where the principals and the agents offers are way better than XYZ Manning.
In order to combat this and extend the retention of the crews especially the best and
experienced crews that XYZ Manning have, an in-house Seaman Loan is proposed.
The in-house Seaman oan is designed to lend the seafarers some amount under
necessities and inevitable occurrences. The loan is non-interest and interest type, payable
within four payroll months or depending on the amount and validity of the seamans
contract, salary deduction for light payment and lower risks of bad debts, and in this case,
all seafarers could apply regardless of rank***.
For the officers***, the loan is up to 35% of their monthly wage, tax and interest free,
payable within four payroll months salary deduction .
For the non-officers***, the loan is up to 20% of their monthly wage, tax free with 2.5%
interest and is payable within the validity of contract (salary deduction).
***The loan is funded by XYZ Manning and all officers and non-officer crews are
entitled for the loan so long as they are on board, or stand by crew waiting to be on board
within two months. The crews could only use the In-house Seaman Loan once in a year
and three times in five years. The purpose is to prevent the acquisition of bad debts and to
discourage the crews from having the habit of making loans for living.
Internal customer retention and stronger bargaining power against them

External customer retention since it will attribute to the quality of the services
rendered to the external clients by the crews
Attraction for new applicants and potential high ranked officers to be employed
under XYZ Manning
Additional Income for XYZ Manning since the non-officers will have to pay the
2.5% for every loan they acquire.
PROFITABILITY AND BRANDING STRATEGY
The profitability and branding are actually the results of the first two strategies.
The domino effect explains the relationship of the three strategies to each other. When all
procedures and operations are set in order, the flow of the business will be greatly
affected such that there will have more time for the workers to find ways to become more
efficient and productive. Instead of encoding the filled-up application forms, the
electronic application enables the applicants to encode their credentials and personal
information in an in-house built program that automatically backs-up the data in a
database for easier retrieval. More so, the orderliness of the place attributes to the
aesthetic impact to the company. The cleaner and the more organized the area, the more
reliable and trustworthy it will become as an impact to the customers both internal and
external.
Furthermore, when customers are retained, there are chances that prospects will
be attracted and more internal customers will be manned. Thus, the income will grow
exponentially. This is where profit and brand meet each other.
However, there are still a lot of strategies that XYZ Manning could implement to
further hasten their development and growth. Such are the four Ps of marketing
1. PLACE
XYZ Manning Agency is located near the prestigious Manila Hotel in Port Area, Manila.
A lot of manning agencies and logistics companied reside in this area that would mean
tough competition. The location is strategic but just a twist of building/area renovation
will give a final touch of value to the agency.
The benefits for this project proposal would be the following:
Bigger space for new customer accommodation both internal and external
Classroom/Training room that is more conducive for learning
Mini Library for further research and studies for the crews
Aesthetic appeal
Better working environment for the workers
2. PROMOTION
Like in any business, promotion is important. It could be as inexpensive as a word

of mouth and as extravagant as a one-minute television commercial. However, it could be
as creative and inexpensive as well through a website development, brochure, and job
fairs.
a. Website Development
With a website, the business is accessible to anyone, anytime and anywhere allowing the
management to reach your target audience directly and effectively. It serves as online
business card where internal and external customers can learn more about XYZ Manning
and to make that great first impression. It will also allow the seafarers to send their
applications online.
Services
Online application
b. Brochure
Through the use of brochures, principals and seafarers will have an idea thus raising
awareness of the company such that:
It gives additional data or answer additional questions regarding the service that it
promotes.
It delivers needed facts, figures and other information necessary to aid interested
principals and seafarers.
Its a great way to sell the company and its service to the principals and the
seafarers.
c. Job Fairs
For seafarers job fairs are the meat markets of the entry level job market. Attending job
fairs could give an edge for the company to recruit the best seafarers out there its like
one stop shopping. A good way to conduct a job fair is through establishing affiliations
with maritime and culinary institutions. It is an effective yet inexpensive way of
promoting the business and opening the opportunities for profit and marketability.
d. Sales and Marketing
Based on POEA statistics, there is roughly 5% unemployed seafarers. The only known
reason is that their contracts were not processed. However, there is an opportunity behind
the statistics. Those 5% unemployed could be reached out through telemarketing, emails
and personal visits/invitations. If there could be a list of the unemployed seafarers that
XYZ Manning could purchase, it would be much easier at a cost of roughly PHP3.00
PHP30.00 per name. The advantage of doing this is having higher chances of getting new
recruits.
3. PRODUCT/SERVICE
The business of XYZ Manning is Manpower. XYZ Manning mans a complete pool of
crew from Master down to the Cadets.
Master is responsible for the seaworthiness and the safe, efficient and economical
operation of the vessel and for the safety of all personnel, cargo, and equipment on board.
Chief Officer is the head of the deck department and I the officer in charge in the
absence of the Master.
2nd Officer is responsible to the master for proper performance and conduct as watch-
standby and navigator.
3rd Officer is responsible for the Fire Fighting Equipment, Fire Control Equipment, Life
saving Apparatus and SOLAS Equipment.
GMDSS Officer is responsible for the Master for the complete operation and
maintenance of the vessel's radio station and radio equipment including the keeping of
necessary records and accounts and shall follow the Master's direction regarding it use.
Chief Engineer is the head of the engine department and is responsible to the Master for
the administration, supervision, safe and economical operation of the engine department.
1st Engineer is the second in charge in the engine department and in the absence of the
C/E, assumes the responsibilities of the C/E.
2nd Engineer
is responsible for keeping an Engine Room watch at sea and in port if so required
is responsible for the maintenance and condition of the boilers and auxiliary
machinery for boiler
is responsible for making tests of boiler water and recording the results as directed
by the chief engineer
is responsible for the performance of such duties and maintenance work as may
be directed by the C/E or the 1/E
3rd Engineer
is responsible for keeping an Engine Room watch at sea and in port if so required
is responsible for the performance of such duties and maintenance work as may
be directed by the C/E or the 1/E
Chief Stewards
is responsible for the provisioning of the ship

is responsible for the preparation of meals
is responsible for proper care, control and use of all catering store and provisions
is responsible for the maintenance of a high standard of cleanliness throughout
assigned accommodations, compartments and spaces, and the prevention of
infestation by the pets and vermin
is responsible for the timely and accurate preparation of all reports, records,
requisitions and other documents related to the catering/ function of the vessel
is responsible for the linen and laundry services whether the laundering is done
onboard or offshore
is responsible of all domestic machinery
Boat Swain (BSN)
is responsible for deck care and maintenance of ships hull, facilities and
shipboard equipment/gears under the jurisdiction of the Deck Department
is responsible for matters concerning Cargo Handling operations
is responsible in Administering, Loading, Maintenance, Safekeeping, Control and
Inventory of onboard ships Desk store
is responsible for ensuring Safe Mooring Operations
is responsible for supervising of cleaning Designated/Assigned Areas inboard the
ship
Able Seaman
is responsible for care and maintenance of ships hull, facilities and shipboard
equipment/gears under the jurisdiction of the Deck Department
is responsible in oading, Maintenance, Inventory and Safekeeping of ships
Desk store
is responsible for Onboard Sounding of Bilges, Sea and Fresh water tanks
is responsible for ensuring safe loading and discharge of Ballast, and dispose of
bilges
is responsible for Replenishing/ Loading and Shifting of fresh water
is responsible for cleaning Designated/Assigned Areas inboard the ship
Ordinary Seaman
is responsible in Loading, Maintenance, Inventory and Safekeeping of ships
Desk store
is responsible for Onboard Sounding of Bilges, Sea and Fresh water tanks
is responsible for ensuring safe loading and discharge of Ballast, and dispose of
bilges
is responsible for Replenishing/ Loading and Shifting of fresh water
Deck Cadet
is responsible in assisting matters concerning Cargo Handling operations
is responsible in oading, Maintenance, Inventory and Safekeeping of ships
Desk store
is responsible for assisting in ensuring Safe Mooring Operations
is responsible in assisting Onboard Sounding of Bilges, Sea and Fresh water tanks
is responsible in assisting ensuring safe loading and discharge of Ballast, and
dispose of bilges
is responsible in assisting Replenishing/ Loading and Shifting of fresh water
Mess Boy
is responsible for matters concerning cooking, victualing, feeding and shipboard

general affairs
is responsible for matters concerning the care and maintenance of the facilities
under the jurisdiction of the Catering Department
is responsible for matters concerning the loading, maintenance, control and
inventory of the ships stores and ships provisions
is responsible for matters concerning the laundering of things for ships use
is responsible for matters concerning the cleaning of facilities and places under
his jurisdiction
is responsible for other items as instructed by ships Officers
Oiler
is responsible during vessel operations, watch keeping duties at sea and in port,
performance and preparatory operations of specified duties on the safety for
entering or leaving port and supplementary operations afterwards
is responsible for matters concerning the care and maintenance of the facilities
and appurtenances under the Engine Department
is responsible for operations safety control on the basis of care and maintenance
scheme drawn up by the First Engineer
is responsible for attending of any repair works by shore contractors
is responsible for the control, receipt and inventory control of ships instruments
and engine stores for various operations under the jurisdiction of the Engineer in
charge
is responsible for matters concerning the cleaning and upkeep of machinery
spaces under their charge
4. PRICING
There are two types of prices that XYZ Manning clients look for:
a. Salary Scale for the Internal Customers
It is a constant thing that a Seafarer should be concerned of his own economic welfare,
and that is also the concern of XYZ Manning. At present, there is no way that the salary
scale could be pulled up higher however upon implementing the said strategies, this will
follow. As the external customers get satisfied with the kind of service that XYZ
Manning and its crews render, chances of acquiring higher salary scale would increase.
b. Agency Fee for the External Customers
The reason why there is external customer retention in XYZ Manning is not solely based
on the quality of the service that it renders, but also with the low Agency Fee that it offers
to the principal of which they take advantage of. At present, one of the reasons for low
agency fee is to retain the external customers however, as a proposal; the agency fee
should maintain its low rates for the very reason of attracting more principal. This is a
risky investment since there would be opportunity losses however, as soon as the first
two Ps were done together with the three goal-oriented strategy, the rates could then be
gradually increased in a way that the external customers would not feel. That is through a
10% semi-annual increase.
DUTIES AND RESPONSIBILITIES
General Manager
Develop and maximize the potential of the division. Lead and manage sales and
support personnel so that the capabilities of all division personnel are channelled
to produce positive business results, and progressively develop future competitive
advantages for the division.
Work with the Group VP and other Division Managers to develop and implement
Group strategies and plans for mutual benefit.
Manage and direct the activities of all Division personnel as they carry out the
sales, marketing, purchasing and administrative programs of the division.
Direct the activities of hiring and training all personnel in the Division.
Direct the Division planning process, both long and short term, to meet
current/anticipated region and group goals.
Manage assets and applicable Division expenses to achieve Division goals.
Provide additional management presence in key accounts and with key suppliers
in order to enhance the purchasing and selling position of xpedx.
Maintain, promote and improve customer focus.
Lead and ensure implementation of Customer Focused Quality and Safety
programs.
Previous successful General Management experience in the distribution
business.Preferably from a large, national or decentralized organization.

Strong knowledge of all aspects of the distribution business, packaging and
facility supplies sales, marketing, finance and administration,as well as the
methods which the company utilizes to achieve and measure success.
Must have a high level of integrity, energy and leadership ability.
Must have the ability to understand distribution and company economics and
must be able to effectively communicate with a wide variety of internal and
external customers at different levels of the organization.
Demonstrated successful people management experience is required.
PC proficient in Windows based software programs. Familiarity with operational
mid-range and mainframe systems is helpful.
Ability to motivate team, work independently, manage multiple projects, work
under pressure, and adapt to sudden changes in the work environment.
Excellent verbal, written, presentation, people, and diplomacy skills are required.
Strong analytical and problem-solving skills are required.
Previous experience in Packaging and Facility Supply sales a plus.
Other duties as assigned.
Operation Manager
In charge of all necessary documentation and processing of relevant Licenses
pertaining to the POEA, TESDA, OWWA, MARINA, PRC, NLRC, P&I CASE,
EMBASSY, ISLA/AMOSUP CBA, and other related Agencies crucial to the
Manning and Crewing Operations.

Supervise and assist all documentation and processing of Seafarers Contract and
documents including all POEA matters delegated to the Liaison Officer.
Responsible to the General Manager for Seafarers P&I and NLRC Cases,
including Post-Medical Examination of Repatriated Seafarers due to accident or
illness under P&I account.
Supervise daily Operations and assist the Crewing Managers in all aspect of
technical correspondence with the Principal including necessary communication
with the relevant Agencies and Offices essential to the Operation.
Ensure daily Operations, particularly Pending and Outstanding matters
concerning Administrative, Operational and Technical has been accounted for and
carried out accordingly on a day to day basis.
Coordinate and Report to the General Manager progress of daily Operations and
any delicate or urgent matters necessitating Managerial decision.
Assumed the Responsibility of the higher Management in the absence of the
General Manager.
Assist the General Manager in Marketing Prospective Clients and participate in
Management planning and introducing Action Plan for continuous satisfactory
operations.
Assist or Conduct PDOS to departing Seaman and attend to Seafarers complaint
or specific concern if necessary.
Check the statement of accounts to our principals from accounting.
To perform other duties assigned by the General Manager.

Fleet Bulk Officer
Plans organize and manage HR functions in compliance with company policies
and procedures in compliance with manning and crewing matter.
Keep deck and engine officers and ratings files and computer records up-to date
Interview potential new hire senior deck and engine officers and ratings
Evaluates crew performance and recommend promotions to principals
Keep on contact with ex officers and crew who are on vacation update their
Line-up program
Always update crew change plan two (2) months prior POEA processing
Monitor crew PEME and other STCW trainings to be taken by crew when
approve
Conduct ISM/ISPS/PDOS/training for all on-signers deck and engine officers and
crew
Conduct recruitment procedures in conformity with principal Hiring Standard
Responsible to handle account for prinipals
Fleet Reefer Officer
Contact seamen to report to office for purposes of vessel assignment,
documentation processing or as required by Operation Manager.

Retrieve all licenses, certificate and sailing documents of Offices /Engineers and
crew, check its validity, arrange requirements for renewal and submit to person-
in-charge for processing.
List of documents required for departure which should be checked for validity and
possibly arrange for renewal as follows:
1. Seamans Identification ecord Book ( SIRB)
2. Passport
3. Seamans egistration Certificate S C
4. Yellow Fever
5. Flag of State Licenses
6. Original PRC License and Board Certificate
7. Certificate of Competency (PRC & TESDA)
8. General Operators Certificate (GOC)
9. Check all Training Certificate
10. Applied Visa
11. Medical Certificates
Prepare bio-data of crew for submission to our principal and await approval for
hiring.
Contact vessel local agent to inform crew changes and vessel port scheduled then
request letter of guarantee or ok to board/visa upon arrival prior to final
destination.
Sourcing qualified Officers/Engineer for Vessel requirements.
Prepare documents requirements for filing of licenses and certificate of
Officers/Engineer and crew for Flag License vessel.
Checked POEA contract to sign by approving crews.
Prepare all travel docs including repatriation tickets and working gears for all
vessels.
Prepare for booking to our local agent.
Prepare docs for Immigration and process
Prepare all travel documents to be hand-carried by joining crew to their respective
vessel assignment.
Prepare all documents required by the Master and principal to be hand-carried by
joining crew.
Prepare joining crew documentation and departure checklist.
Prepare forward planning for three months and crewlist.
Prepare crew availability on vacation list.
Check validity of documents of seamans applications endorse to our General
Manager.
Issue seamans certificate of Service in behalf of our General Manager
Other duties which maybe required by the Operation Manager

Liaison Officer
To assume the duties and responsibilities assigned to the Liaison Officer for
accreditation of vessels and principal. Processing and documentation of seafarers
contract with the POEA, TESDA, NLRC, MARINA, EMBASSY and other
relevant office concerning operations.
In-charge of keeping office files and pertinent records, submission and updating
necessary documents and license with the POEA, ISLA, AMOSUP, NLRC,
MARINA, EMBASSY, PRC, and other relevant office pertaining to operations.
To assumed the position of Assistant Crewing Officer as back up to the operations
and assist in continuous pooling of qualified seafarer applicants especially
potential officers.
To perform other duties assigned by the Operation Manager.
Human Resource Manager
Plans and carries out policies relating to all phases of human resources activity by
performing the following duties personally or through subordinates.
Recruits, interviews, and selects employees to fill vacant professional and
management level positions.

Works with Corporate Human Resources to develop and maintain a human
resources system that meets top management information needs assessing
effectiveness of system and resulting employee morale.
Oversees the analysis, maintenance, and communication of records required by
law or local governing bodies or other departments in the organization.
Studies legislation, arbitration decisions, and collective bargaining contract to
assess industry trends.
Represents management in negotiating collective bargaining agreements.
Prepares personnel forecast to project employment needs.
Writes directives advising department managers of company policy regarding
equal employment opportunities, compensation, employee benefits and other
workplace policies.
Prepares budget for human resources operations.
Represents organization at personnel related hearings and investigations.
Supervises record keeping of hired employee characteristics for governmental
reporting purposes.
Implements, and evaluates the organization's policies and procedures on
recruitment, testing, selection, job placement, and attendance.
Plans and directs activities of staff in carrying out such functions as developing
sources of qualified applicants, conducting screening interviews, administering
tests, checking references and background, evaluating applicant qualification, and
arranging for initial orientation and training of hired employees.

Analyzes statistical reports and other data using knowledge of job requirements,
valid selection processes, and legislation concerning equal employment practices
in order to identify and determine causes of problems or inefficiencies in the
employment function.
Finance manager
Budgets and financial report preparation
Profit and Loss control
Pricing Review
Oversee Finance Planning team / handle direct reports
Individual contribution in the department
Routine vendor / client management
Strong leadership and people management experience
Large scope of function and role in the Finance structure
BPO/contact center background in the role
Proficient and strong interest in financial analysis
Highly organized and detail-oriented
Inquisitive and with strong analytical skills
Accounting clerk
Heavy Corporate Bank Reconciliation, (multi-accounts with 500+ transactions)

Maintain Revenue Accounts
Maintain Excel Spreadsheets
Checks and obtains department approval for all vouchers for payment processing
Ensures timely payment of invoices
Interact with internal departments and field operations to troubleshoot and resolve
outstanding accounting issues
Minimum 2 years of recent experience as an Accounting Clerk with a variety of
accounting skills
High data entry speed with outstanding accuracy
Proficiency and previous experience using accounting software
Previous experience using Excel spreadsheet software
Highly detail-oriented and thorough
Must be able to work independently and work in a fast paced
production environment
Good written and verbal communication skills
Verifiable Professional References Required
Technical Support Manager
Develop/improve service manual and other training documents.
Directly manage team of 2-3 technicians (local service depot operations)

Ensure all service personnel are properly trained and that training records are
maintained
Develop and track Key Process Indicators to monitor service operations
performance
Apply Lean concepts to ensure the local service depot appears neat and orderly
and that work is optimally organized for maximum efficiency
Work with QA to investigate and close complaints as quickly as possible
Track complaints and component failures, and report monthly (CAPA experience)
Work with Finance team to develop service budget, then track performance to
budget and report updated forecasts monthly
Participate directly in difficult, challenging or sensitive customer situations and
problems to create effective solutions
High level experience with operating software experience required.
Understanding of network technology.
Computer Analyst/Programmer
Ability to work effectively with business clients and colleagues, as well as within
the IT team.
Ongoing contact with key business users in gathering requirements and delivering
IT-based solutions.
Ability to self-manage and effectively handle multiple projects concurrently with
the aptitude to effectively prioritize as project needs change.
Must be result-oriented and customer focused.
Excellent verbal communication skills and the ability to write effective
correspondence and documentation.
Business Operations Flow Chart
These are the procedure of the following:
Recruitment of new applicants
Employ signed off crews
Selection
Endorsement and Approval
Briefing and Training
Ticketing
Signed in and signed off
Debriefing
Crew Change
Notification and recruitment
Evaluation f crews
Recruitment of New Applicants Process
Responsibility Process Interface
START
Principal provides Crew

Principal
Requirement Information
Promote Job
Flyers, ads
Offering
Applicants are No Staff source out potential Resume of the

Walk-in? candidate Applicant
Yes
Crewing Manager receives
Application Form for New
Crewing Manager Application forms and other
Recruits
required documents
Crewing Manager
evaluates applicants
data
Applicant suits No Store Applicants Data in

Principals the electronic and
Requirements? physical warehouse
Yes
Schedule Interview
and Screening of A
New Recruits
New Recruit passed No

A
interview?
Yes
Recommend New
Recruit to the Principal
END
Employ Signed off Crews
Responsibility Process Interface
START
Principal Principal provides Crew

Requirement Information
Crewing Manager Staff gathers information from Documents of Crew

Signed off Crews (resume, debriefing form)
Crewing Manager evaluates

applicants data
Crew suits Principals No Recruit New

Requirements Applicants
Yes
Recommend Crews to Principal 1
END
Selection Process
Process Responsibility Interface
START
2
Principal receives
Crew Line up
recommendation of Crews
Documents
Crewing Manager from Crewing Manager
Principal evaluates
applicants data from
Principal
Crewing Manager
No Crew Manager
Accept Applicant?
recommends new line up
Yes
Finalize Crew Line

Crewing Manager
up
Principal
Principal accepts the final
line up of Crews
END
Endorsement and Approval
START
Email
notification
Principal received
notification of Crew Line up
Crewing Manager Documents
Recommended crew line
ups
Approve Crew No Go back to crew

Principal
Line up? selection
Yes
Briefing Forms
Proceed to Briefing and
Training of Crews
2
Principal Contract Signing

and Allocation of
Work
END
Briefing and Training
Start
Check Availability of Training

Schedule of Training Manager
Staff Manager and Operations
Manager and Operations Manager
Assign 1crew to Training

Manager and 1crew for
Operations Manager
Plot Schedule for both Training

Manager and Operations
Manager for briefing and
training of crews
Schedule of Briefing
and Allotment
Requirements
Crew Notification via phone or
email
Crew Assigned to Yes Training Manager meets

Training Manager PDOS Documents
Training Manager the Crew
No Training Manager starts

discussion of PDOS safety
briefing
Operations Manager Proceed to Operations

meets the Crew Manager
Operations Manager Pay Allotment

Documents
Discussion of Pay Allotment
Briefing
Proceed to Training Manager
End
Ticketing
START
Manning Agency
Manning Agency sends the Documents
travel agency specific details
needed for the ticket
Agent
Can comply with No Look for other travel Fare details

requirements with the Agencies with lower
lowest airfare? rate of fare
Yes
Choose the best alternative

from the available travel
agencies
Start discussing further

details (clarification and
updates), for the issuance
of tickets
Received tickets and check

if statements of accounts Statement of
are correct Accounts
Collect billing from travel Billing

agency, then forward it to Form
Principal
Receives
payment from
the Principal
Pays travel
agency
END
Principal
Sign in and Sign off
START
Review Schedule of Sign on and Sign Crew Lists

Staff off of Crews
Briefed and Trained Crews proceeds to

port (From Briefing and Training of
Crew Complement and Allotment
Processing)
Agent from the port meets and bring

Agent the crews together
Crews to be assisted by the Agent in

the Port
Agent Introduces new batch of crews

to the Captain on board
Signing on crew line up to be

introduced to signing off crew line up
Signing off Crews endorses job

description to new batch of crews
Turnover of Work from Signed off

Crews to Signed on Crews
Signed on crews proceeds to work
Signing off crews proceeds to Agent
Agreement of Pay roll and other Pay Allotment

financial details Documents
Signing off crews proceeds to Shipping Debriefing Forms

Agency for Debriefing Purposes
Signed off Crews waits for Crewing

Manager Recommendation
END
Debriefing
START
Signing off crews proceeds to Agnecies
Crewing Manager Crews evaluation
Company settles for balances if any Allocation and Allotments
Filling up of Debriefing Forms Debriefing Forms
Renewal Form
Crews Inform Company for their
renewal
Notify Principal of Vessel Deployment
END
Crew Change
START
Notification coming from

charterer to agent
Agent Received notification

Forms of Agreement
of details of crew change
Agent
Embarkation and
disembarkation of crews
Briefing of information to
both parties
Yes
Clarifications?
No
Agent gives the final

procedure to both parties
Agent assists newly sign-on

crews
END
Notification and Recruitment
START
Receives Principal Notification of Forms of Agreement

Vessel Deployment
Crewing Officer
Takes note of Crew Requirements

Documents from Crews
for the Vacancy
No Proceed to Recruitment
Ex-Crews Available?
Process
Yes
Principal Recommend Ex-Crews

1
Wait for the Principal

Selection
END
Evaluation
Start
Crewing Officer Crewing Officer notifies Principal Crew Lists

for Inspection and evaluation
Crewing officer meets Agent
Agent Agent verifies Principal Appproval
Principal Approves No
No for principal and
Wait
Principal Inspection and Evaluation of
further clarifications
Crews
Yes
Agent assists the Crewing Oficer

to the Vessel
Agent Evaluation of Captain of the Ship Evaluation Forms
Crewing Officer Evaluation of Remaining Crews
Remarks, Suggestions,
Recommendation of Crewing
Officer to Crews
End
Information Technology
It is necessary for a company to have a systematic information and operation, particularly
in managing loads of documents and to easily share out information anywhere in real
time. Thus, Data warehousing and Companys website must apply to improve their
system.
I. Data Warehousing
Data is necessary to be kept in both physical and electronic warehouses since all
documents/data/information gathered from both seamen and principals are relevant and
confidential.
c) Data Warehousing: Physical
The Physical Warehouse applies to all hard copies of documents, whether acquired,
printed, or distribution copy. Since the current set-up of the companys physical
warehouse is by cabinet filing, the risk for data loss is high due to thlow security it can
provide. Thus, a safe keep of a vault is necessary and is strongly recommended as a new
shelter for the documents.
Documents must then be arranged, either alphabetically, by rank, or coded. Folders or
envelopes should be colour-coded to put in order; therefore it will be easy to distinguish
the file of different position or rank.

FIG. 1.0
FIG. 1.0 Envelopes are colour-coded according to seafarers rank and complete
name are placed upper left, alphabetically arranged.
d) Data Warehousing: Electronic
The Electronic Warehouse applies to all electronic or soft copy of documents. Although
there is a vault available, soft copies must be kept not only for electronically acquired but
also for the acquired hard copies. It is recommended that the documents such as
certificate, contracts, forms and other physical/printed materials be scanned in order to
maintain back-ups and secured sources of information.
Types:
Database for crew and principal information

Program for automated application (electronic application form for recruitment)
Forms for reports from crew (monitoring form) and principal
Fig. 2.0
Fig. 3.0
Fig. 2.0-3.0 Seamans application form and Information This is where the walk-in
applicant will type in personal information and it will also serve as their resume.
Fig. 4.0
Fig. 5.0
Fig. 5.0 List of applicant for evaluation : This will only be visible for the user or
manning officer showing the list of applicant to be evaluated.

Fig. 6.0
Fig. 4.0 and 6.0 Crew line-up data entry and list : Information and schedule of
crews that are lined-up for signing on and off.
Fig. 7.0
Fig. 7.0 Rank / position master file: Shows the list of rank and code
Fig. 8.0
Fig. 9.0
Fig. 10.0
Fig. 11.0
Fig. 8.0-11.0 Vessel, Principal, crew and user master file: Shows the summery of each
category.
II. XYZ Manning Website
With a website, the business is accessible to anyone, anytime and anywhere allowing the
management to reach your target audience directly and effectively. It serves as online
business card where principals can learn more about XYZ manning and to make that
great first impression. It will also allow seafarer to send application online.
Services
Online application

Fig. 12.0 Proposed website design Home
Fig. 13.0 Proposed website design about us
FINANCIALS
A. Manning Fee of XYZ company

$ 1.00=Php 44.00
in US Dollars in Philippine Peso
Year no. of vessel Manning Fee fee/month fee/year fee/month fee/year
2010 15 $800.00 $12,000.00 $144,000.00 540,000.00 6,480,000.00
2011 20 $800.00 $15,600.00 $187,200.00 702,000.00 8,424,000.00
2012 25 $800.00 $20,280.00 $243,360.00 912,600.00 10,951,200.00
2013 33 $800.00 $26,364.00 $316,368.00 1,186,380.00 14,236,560.00
2014 43 $800.00 $34,273.20 $411,278.40 1,542,294.00 18,507,528.00
2015 56 $800.00 $44,555.16 $534,661.92 2,004,982.20 24,059,786.40
***assuming an increase of 30% in number of vessels every year at a constant manning fee of $800 per vessel per
month.
B. Forecast
2011 2012 2013 2014 2015
Revenue 34,044,523.50 44,257,880.55 57,535,244.72 74,795,818.13 97,234,563.57
Less: Operating expenses
various expenses
including additional
training 9,765,961.92 11,719,154.30 14,062,985.16 16,875,582.20 20,250,698.64
and promotion 190,000.00 165,000.00 165,000.00 165,000.00 165,000.00
Initial expenses 9,955,961.92 11,884,154.30 14,227,985.16 17,040,582.20 20,415,698.64
Net Income Before Tax 24,088,561.58 32,373,726.25 43,307,259.55 57,755,235.93 76,818,864.93
*** assuming that there is an increase of 20% on various expenses from 2011
Revenue
2008 18,908,681.00
2009 26,188,095.00
2010 26,188,095.00
2011 34,044,523.50
2012 44,257,880.55
2013 57,535,244.72
2014 74,795,818.13
2015 97,234,563.57
Revenue
2
2
2
2
2 Revenue
2
2
2
0.00 100,000,000.00 200,000,000.00

Additional expense for proposed activities and promotions
A. Companys ebsite
Php 25,000.00 for web design

Php 5,000.00 every year for domain
B. Brochure and leaflets budget
Php 50,000.00 per year
C. Job Fairs budget
Php 50,000.00 per year
D. Trainings budget
Php 10,000 per training

Php 60,000 per year
COMPUTED FINANCIAL RATIOS
LIQUIDITY RATIOS
Curent ratio = Current assets

Current liabilities
= 178,753,473.00
127,152,963.00
= 1.41
***for every current liabilities,

there is 1.41 current asset available for
payment
PROFITBILITY
RATIO
ROE = earnings available for common stockholders total assets

X
total assets common stock equity
= 12,929,656.00 184,018,662.00
X
184,018,662.00 52,987,781.00
= 0.24
Return on total assets= earnings available for common stockholders

total assets
= 12,929,656.00
184,018,662.00
= 0.07
Return on common
equity= earnings available for common stockholders
common stock equity
= 12,929,656.00
52,987,781.00
= 0.24
Gross profit margin= gross profit

sales
= 30,407,661.00
54,047,790.00
= 0.56
Operation profit margin

= operating profit
sales
= 10,061,907.00
54,047,790.00
= 0.19
Net profit margin= earnings available for common stockholders

sales
= 12,929,656.00
54,047,790.00
= 0.24
earnings per share= earnings available for common stockholders
number of shares of common stock outstanding
= 12,929,656.00
40,000,000.00
= 0.32
Activity ratio
Fixed asset turnover= sales

net fixed asset
= 54,047,790.00
2,233,512.00
= 24.20
***for every Php 1.00 fixed assets acquired,

there is 24.20 return on sales
Total asset turnover= sales

total assets
= 54,047,790.00
184,018,662.00
= 0.29
***for every Php 1.00 of total asset,

there is 0.29 centavos on return on sales
Debt ratio= total liabilities

total assets
= 131,030,881.00
184,018,662.00
= 0.71
***there is 0.71 capacity to pay for every

liability
Assets to equity= total assets
common stock
equity
= 184,018,662.00
40,000,000.00
= 4.60
Market Ratios
` common stock equity

number of shares of common stock
outstanding
= 40,000,000.00
400,000.00
= 100
share
Current Business Process Flow
OVERVIEW OF MANNING BUSINESS PROCESS
NOTIFICATION OF VESSEL
RECRUITMENT PROCESS CREW APPLICATION PROCESS
DEPLOYMENT BY PRINCIPAL
SCREENING & SELECTION PROCESS
IF VESSEL NEW, ACCREDIT VESSEL

WITH POEA
PROCESSING OF CREW
APPROVAL OF FINAL LINEUP FROM ENDORSEMENT OF SHORTLIST OF
REQUIREMENTS AND POEA
PRINCIPAL SIGNON CREW TO PRINCIPAL
REQUIREMENTS
NOTIFICATION OF CREW CHANGE

DETAILS TO AGENT
BRIEFING & TRAINING OF CREW

COMPLEMENT AND ALLOTMENT SIGNON & SIGNOFF OF DEBRIEFING OF SIGNOFF CREW AND
PROCEESING CREW LEAVE PAY RELEASING
NOTIFICATION OF VESSEL DEPLOYMENT
CREWING MANAGER
EMAIL
NOTIFICATION
SAILING DETAILS
RECEIVE NOTIFICATION FOR NEW
VESSEL NAME
VESSEL DEPLOYMENT FROM
IMO NO.
PRINCIPAL
GRT
NO. OF CREW
CREW POSITIONS
CHECK FILE OF EX-CREW
NEED NEW ENDORSE LINEUP TO GENERAL

NO
RECRUITS? MANAGER FOR APPROVAL
YES
START RECRUITMENT PROCESS

FOR NEW RECRUITS
A
A
SEND RECRUITMENT FEELERS IN

KALAW FOR NEW RECRUITS
SET APPOINTMENT DATE WITH

PROSPECTIVE NEW RECRUITS
PROCESSING OF NEW RECRUITS
CREWING MANAGER
APPLICATION FORM
ORIGINAL BOARD CERTIFICATE (FOR OFFICER)
ORIGINAL COPY OF TRAINING CERTIFICATE
ORIGINAL PASSPORT AND SEAMAN BOOK
RECEIVE ACCOMPLISHED
APPLICATION FORM AND REQUIRED
DOCUMENTS OF RECRUIT
INTERVIEW RECRUIT
PASSED? NO RETURN DOCUMENTS TO RECRUIT
YES
ENDORSE TO GENERAL MANAGER

FOR FINAL INVTERVIEW
PROCESSING OF NEW RECRUITS
GENERAL MANAGER CREWING MANAGER
RECEIVE RESULTS OF INTERVIEW OF

RECEIVE ENDORSEMENT OF NEW
NEW RECRUIT FROM GENERAL
RECRUIT FROM CREWING MANAGER
MANAGER
INTERVIEW RECRUIT FINALIZE CREW LINEUP
ENDORSE BACK TO CREWING ENDORSE LINEUP WITH SUPPORTING

MANAGER WITH COMMENTS & DOCUMENTS TO PRINCIPAL FOR
RESULTS OF INTERVIEW FINAL APPROVAL
APPROVAL FROM PRINCIPAL
CREWING MANAGER
EMAIL
NOTIFICATION
RECEIVE NOTIFICATION FROM

PRINCIPAL REGARDING CREW
LINEUP
LINEUP
NO GO BACK TO CREW SOURCING
APPROVED?
YES
START PROCESSING CREW

DOCUMENTS AND POEA
REQUIREMENTS

XYZ Manning Company A New Strategic Business Plan

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

XYZ Manning Company A New Strategic Business Plan

Încărcat de

Drepturi de autor:

Formate disponibile

XYZ Manning Company:

A New Strategic Business Plan

A Capstone Project Submitted to the School of IE-EMG

Bachelor of Science in Engineering Management

Mapa Institute of Technology

Upon completion of this capstone study, we would like to sincerely express my

and perseverance that He entrusted which made the study possible.

We would like to extend our warmest appreciation to our friends, especially

through the study.

Fantillo for his help and guidance.

impact on this study.

emotionally. This study is dedicated to you. We love you so much!

Table 1.1 Marketshare of XYZ Manning from Year 2007-2009 2

Table 3.1 Conceptual Framework 16

Table 4.1 Financial Ratios 28

Table 4.2 SWOT Matrix 30

Table 4.3.a Kepner-Tregoe decision analysis 44

Table 4.3.b Kepner-Tregoe decision analysis 45

Figure 4.1 Input-Process-Output Model 22

Figure 4.2 Porters Five Forces 25

Manning involved finding manpower and training these maritime industry

for these workers.

unemployed Filipino seafarers.

dedicated in achieving the highest levels of service for these clients.

The company offers services to the ship owners/managers, which includes

seafarers employment intermediation services. These services can be provided

individually or collectively, including:

Consultancy services for ship owners: technical, crew management, seafarer

training, manning and recruitment;

Seafarer and marine worker training ; and

Port agency services .

YEAR 2007 2008 2009

the environment. Their management system is out-dated, which includes marketing

downward pressure on branding.

strategic business plan for the company.

industry nor the implementation of the authors proposal.

other manning agencies.

solving methodology in a company-based environment. By doing the study, Engineering

According to the article of MANILA (AFP); Philippine seafarers buoy economy

Manila every day to scan vacant notices.

in Europe to hire all Filipinos in the top posts, he added.

Employment Administration (POEA) official said.

agreed that as a precautionary measure shipowners employing Filipino seamen would

plans and a complete line-up of their crew.

Employment Administration (POEA) and other concerned agencies were directed to

November 11, 2008 in the Gulf of Aden.

of Aden, which the POEA has declared a "risk zone."

David Dearsley, head of Strategic eview and Development Project of ICS ,

The International Development Environment Shipping System IDESS , a well-

of seafarers. This is comparatively low in international terms and therefore appears

attractive in the profit-oriented globalised shipping industry.

than the average office executive in Manila.

An article in Tinig ng Marino (Dec 2006 entitled Migrant Workers Forum

burdensome training and documentation requirements on Filipino merchant marine

only 8,000 to 10,000 find the job within a year.

Difficulties with Contracts

Despite the existence of contracts and a compulsory minimum wage, seafarers

payments, contract substitution onboard, early termination of contract, endless litigation

on compensation, age-limit restrictions, blacklisting, and unnecessary retraining

Problems with remittances

or remit delinquently, their contributions to the Social Security System. "Manning

Affairs undersecretary Merlin Magallona.

should eradicate, or at least minimize, the practice of "intentionally delaying" remittances