CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

Rationale of the Study

In the market nowadays, most of the packaging of the products is made

up of plastics. Plastics are very common because of its convenience and

lightweight. However, harmful effects of plastics were reported due to its wide

range of production, distribution and improper waste management. Up until now,

it is considered as the most rampant problem that the world is currently facing

which could persist for centuries (Gallo, 2018). As a way to lessen the plastics,

the researchers found an alternative to a product which is widely used by the

people.

According to Statista, Plastics Europe, there are about 300 million tons of

plastic productions in the year 2015 (Shwandt & Koger, 2015). Due to that, the

amount of plastics produced in a year is roughly the same as the entire weight of

humanity. Between 5m and 3m tons of plastic leaks into the world’s oceans each

year to be ingested by seabirds, fish and other organisms, and by 2050, the

ocean will contain more plastic by weight than fish according to a research by the

Ellen MacArthur Foundation (Wearden, 2016) There is no safe way to dispose

plastic waste and waste causes serious damage to environment during its

production process, during its usage and during its disposal process. Experts

warn that some of these are already finding its way into the human food chain
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through consumption of seafood in which the seas are already affected by

pollution of wastes into the bodies of ocean. In this case, the bad effects to the

surrounding would probably cause harm to human health.

As water is a necessity in life, bottled water was first sold in United

Kingdom in 1622 for convenience and portability (Ryan, 2007). Plastic bottle is

one of the best examples of a product made up of plastic. This plastic contains

polyethylene teraphthalate, a synthetic polymer which is not biodegradable due

to high hydrophobic level and high molecular weight. When water is stored in

plastic bottles, it produces harmful substances like fluoride, arsenic and

aluminum that can poison the human body. It can also lead to liver cancer and

reduction in sperm count due to a chemical substance called phthalates(Bhatia,

2016). In other words, drinking plastic bottled water would mean drinking minimal

poison that will slowly deteriorate your body. According to Euromonitor in 2016,

there are almost 500 billion units of global PET plastic bottle production (Statista,

2016). Due to this, the majority of plastic wastes are made up of plastic bottles.

Given the concerns raised above, a news article from GMA news in which

according to a survey by Greenpeace on September 23, 2017, Philippines is

ranked as the third worst polluter of plastics into the world’s oceans. Another

news article from Rappler, a waste audit in the Manila Bay in 2015 was

conducted; there are almost 1,294 liters of waste in which 61.9% of it is

composed of plastic material. This means that plastics all over the country are

used and improperly disposed by most of the Filipinos.

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This study aims to provide an alternative to plastic bottles which could help

lessen the plastic production and distribution in the market. It is also an eco-

friendly product which could quench one’s thirst and at the same time, it is safe to

drink and helpful to the environment.

STATEMENT OF THE PROBLEM

This study is to determine the feasibility of producing carton bottled water. It is

also to determine the practicability, profitability and the distribution of the product

to the market. Specifically, the following questions were answered:

1. Is the proposed production and distribution of carton bottled water feasible in

terms of the following aspects:

1.1 Technical;

1.2 Marketing;

1.3 Management;

1.4 Legal and Taxation;

1.5 Financing;

1.6 Financial;

1.7 Socio-Economic Desirability, and

1.8 Strength, Weaknesses, Opportunities, and Threats

2. Based on the findings, what recommendations maybe proposed for the

project?
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SIGNIFICANCE OF THE STUDY

Since the environment is the main concern and plastics are the most

common factors in degrading its environmental health, one way to regain its

health is through an eco-friendly alternative to plastic bottles which is carton

bottled water. The conduct of this feasibility study is essential for the

determination of its project sustainability and profitability before its actual

production. The information herein likewise can be beneficial to certain sectors.

Direct Users

This study will promote awareness among the consumers about the bad

effects of plastic bottles on one’s health. Consumers are confused sometimes

where to throw the consumed plastic bottles and it can easily overflow the

garbage bags because it can occupy a huge amount of space. Carton bottles are

easy to dispose of because it can simply be flattened and can occupy only a

small amount of space. Consumers will then minimize the use of plastic, thus

also keeping the environment clean.

Prospective investors

This study could give an idea to the prospective investors about an

alternative for plastic bottles in the market. The information gathered in this

study, specifically, the financial analysis and the projected results of its operation

can help the investors decide if this project is worth their investment risk.

Investors of this project will know whether they will be able to generate enough

income to maintain a profitable and stable business.

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Community

Environment-related organizations are very common in different areas.

Members of the community would probably want to help the cleanliness in the

surrounding. Giving awareness and information to the community about the

harmful effects brought by plastic water bottle is one way to help them. This

study would help in attaining the goals of the community which is to lessen the

plastics in the environment

Competitors

With the inception of this study, this will start a competition for innovation in

the business setting. Having the sufficient and relevant data about this product

can lead the way where experiments and developments that can give rise to new

competitors and inventors of this product.

Proponents

This study enabled the proponents to gain more knowledge and expertise

regarding business conduct and its management. It had developed the skills of

the researchers about social and environmental education, writing analysis and

interpretation skills to make a good study

Future researchers

The information gathered in this study will serve as a guide to the future

researchers and can help them understand, plan and utilize information for their

study. They would also be aware of the possible problems that they may

encounter during the process of attaining their endeavor.

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Government

This study can help the state by providing better opportunities to open a new

market for the product. This can also give an idea to the Department of

Environment and Natural Resources to create limitations on the usage of plastic

bottles.

RESEARCH DESIGN

Research design refers to the methods and procedures used in collecting

and analyzing data. It typically includes how data is collected, what instruments

are employed, how the instruments are used and the intended means for

analyzing data collected. The function of a research design is to ensure that the

evidence obtained enables the researchers to effectively address the research

problem logically and as specifically as possible.

Research Environment

The proponents decided to conduct the survey of the proposed product in

selected universities in Cebu City. Cebu city is a first class highly urbanized city

in the island province of Cebu. The city is a major hub for the business process

outsourcing industry of the Philippines. Cebu City currently has eleven large

universities each with a number of college branches throughout the city and more

than a dozen other schools specializing in various courses. The proponents

chose to conduct the survey in selected universities within the city of Cebu

because college students are one of the main consumers of bottled water.
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Figure 1

Map of Cebu

Figure 2

Universities in Cebu City

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Research Methodology

The proponents will use descriptive survey method in this study of the

product. This method is used to obtain information concerning the current status

of the phenomena in terms of condition, practices, beliefs, relationships,

processes or trends invariably. In this method, the participants answer questions

administered through interviews or questionnaires. The questionnaires include

open-ended, closed-ended and rating-scale type of questions.

The technique that the proponents will use in choosing the sample size

from the population will be random sampling. Under this technique, each

individual is chosen entirely by chance and each member of the population has

an equal chance of being included in the sample.

Research Respondents

The respondents of the study are college students from University of San

Jose-Recoletos-Main Campus and University of Cebu-Main Campus. University

of San Jose – Recoletos, also known as USJ-R main campus is a catholic

university located in Magallanes Street within Cebu City. Meanwhile, University

of Cebu – Main Campus is located in Sanciangko Street which is an accessible

institution within the metro. These people are those who frequently purchase

bottled water in their day-to-day lives. The population of each school for the

school year 2017-2018 Second Semester was taken from Commission on Higher

Education Region 7. With a total population of 40,670, using Slovin’s formula with
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a 5% margin of error, the sample size is computed and distributed on the next

page.

Sample Size Computation:

n= = = 396 [Total Sample Size]

USJ-R Main Campus: x 396 = 119

UC Main Campus: x 396 = 277

Table 1

Total Population per School and Allocation of Sample Size

Respondents from Population Percentage Sample

Size Contribution Size
Allocatio
n
University of San Jose-Recoletos 12,136 30% 119
Main Campus
University of Cebu- Main Campus 28,534 70% 277
TOTAL 40,670 100% 396

To find the sample size allocation of each university, the sample size

which is 396 was distributed in proportion of the population of the school to the

combined population of both schools. That is, 396 multiplied to the percentage

contribution of each university.

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The researchers conducted a dry run test last July 27, 2018 at South

Western University-Phinma. This test is done to give the proponents a glimpse of

what kind of responses they will receive in the actual survey. There are 15

respondents in this dry run and are chosen via random sampling. The

respondents gave some suggestions as to how to improve the survey form and

the researches then accounted each of the suggestions of the respondents.

DEFINITION OF TERMS

To avoid confusion and to enhance the understanding of the study, the

proponents provided the definition of terms which the readers may find

incomprehensible. The following are defined:

Arsenic

A metallic element that forms a number of poisonous compounds, arsenic is

found in nature at low levels mostly in compounds with oxygen, chlorine and

sulfur.

Deleterious effect

This means that if something is deleterious, it does harm or makes things worse.

Hydrophobic

It is a property of a substance that repels water. Hydrophobic molecules are

usually nonpolar, meaning the atoms that make the molecule do not produce a

static electric field.

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Phthalates

Mainly used as plasticizers as substances added to plastics to increase their

flexibility, transparency, durability and longevity.

Polyethylene terephthalate

It is commonly known as PET which is best known as the clear plastic used for

water and soda bottle containers. This is a type of plastic that is used to make

different types of products.