A Plan To Modernize Jeep

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Arnaldo S. Laurino, Jr.

Case Title: A plan to modernize the nation’s jeepneys

Viewpoint: DOTr Secretary Art Tugade

Time Context: January 22, 2018

Statement of the Problem

To push through the PUV Modernization Program by encouraging the Jeepney


Operators and Drivers to change their old units through the loan assistance and
subsidy of the government.

Statement of Objectives

To promote a new, safer, more efficient and environment friendly Public Utility
Vehicles by starting the massive modernization of jeepneys by February 12,2018

Areas of Consideration

Strengths

Their mandate to provide the country with efficient, effective, and secure
transportation systems that are globally competitive, compliant with international
standards, and responsive to the changing times.

Weakness

Other issues need to addressed such as the improvement of our train systems
especially the Metro Rail Transit, Fare hike increase of other PUV operators due
to fuel price hike, increasing infrastructure problems and massive traffic in Metro
Manila Roads.

Opportunities

Political

Our transportation will be globally compliant with the International Standards.

Promote better partnership with the government and the PUV operators.

Economical

Increase of Income among drivers and operators.


It will create employment due to increase of volume of production of new PUV
units.

Many financing institutions will offer competitive interest rates for financing of
PUV loans.

Socio-Cultural

It will improve the image of our jeepneys as new, modernize, safer, convenient,
efficient and environmental friendly.

Increase of morale and self confidence among operators and drivers.

Technological

Better fuel economy and efficiency


Safer, convenient and environmental friendly PUVs.
Lesser maintenance cost and more income will generate.

Threats

Political

Increase of protest and transport strikes among transport groups.


It may politicize as anti poor and against small PUV operators.

Economical

Some small operators may force to sell their units and franchises.
Long term loan liability among drivers and operators.
May affect the boundary system and income sharing of drivers and operators.
Fares may increase.

Socio Cultural

May change the traditional image of jeepney due to changes of designs and
other modifications

Technological

Materials for production of new PUVs may become more expensive due to the
high volume production.

There will be more scrap materials due to the disposal of old jeepneys.
Alternative Courses of Action

ACA 1 To promote the governments support for PUV modernization by providing


more tax exemptions and subsidies on franchise fees and flexible lower interest
loan amortization to drivers and operators.

ACA 2 Continue the apprehension of dilapidated and road unworthy PUVs.

ACA 3 To invite other investors to invest in local mass transport to respond to the
PUV modernization of the government.

Analysis of Courses of Action

ACA 1 To promote the governments support for PUV modernization by providing more
tax exemptions and subsidies on franchise fees and flexible lower interest loan
amortization to drivers and operators.

Advantages Disadvantages
Many operators will respond to the Costly, and needs a lot of budget.
program.
The need for adjustment for budgeting to
It will also support the poor PUV pursue the program.
operators and drivers.

ACA 2 Continue the apprehension of dilapidated and road unworthy PUVs.

Advantages Disadvantages
Unworthy PUVs will be out in the roads. More difficulty in commuting.

Less traffic accidents. More safety More transport strikes will arise.
commuting for commuters.

ACA 3 To invite other investors to invest in local mass transport to respond to the PUV
modernization of the government.

Advantages Disadvantages
It will immediately respond to the needs It can be against poor PUV drivers and
of modernization of PUVs. operators.

Fare increase.
Conclusion and Recommendations

ACA 1 ACA 2 ACA 3


Effectiveness 3 1 2
Feasibility 3 3 2
Cost Involved 2 3 3
Total 8 7 7

LEGEND
LEAST ACCEPTABLE 1
ACCEPTABLE 2
MOST ACCEPTABLE 3

After considering the above criteria and analysis of each ACA, I therefore recommend
ACA 1,

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