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Sustainable Development of Banana Chips in Tangub City

This document summarizes a study on the sustainable development of banana chip production in Tangub City, Philippines. The study identified transportation as the main factor affecting sustainability. Producers said distribution was inefficient due to a lack of defined transportation and communication means. This prevented efficient distribution and decreased sales. The study aimed to help producers identify causes of declining business and enhance future operations.
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0% found this document useful (0 votes)
978 views11 pages

Sustainable Development of Banana Chips in Tangub City

This document summarizes a study on the sustainable development of banana chip production in Tangub City, Philippines. The study identified transportation as the main factor affecting sustainability. Producers said distribution was inefficient due to a lack of defined transportation and communication means. This prevented efficient distribution and decreased sales. The study aimed to help producers identify causes of declining business and enhance future operations.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SUSTAINABLE DEVELOPMENT OF BANANA CHIPS IN TANGUB CITY

Richille Sordilla-Palad
Tangub City, Misamis Occidental
richillesordilla@gmail.com

I. Abstract- This study on, “Sustainable disagree. This emphasized that the distribution of the
Development of Banana Chips in Tangub City” product was not efficient and there was no well-defined
identified the factors affecting the sustainable means of communication and transportation. Thus,
development of the banana chips production in they could not efficiently distribute their product to the
Minsubong, Tangub City. This study used a target market which also equally resulted to the
quantitative method of research with the researcher- decrease of their sales and not able to meet the present
constructed questionnaire as tool gathering the data. need of the business.
The data were taken from the 30 members of 4P’s
beneficiaries. Results revealed that the transportation Keywords— Banana Chips, Sustainable
was the factor that most affected the sustainable Development, Project Proposal, Financial Capital,
development of the business that was rated as strongly Financial Management, Operation Management, Human
Resource Management

II. INTRODUCTION

Banana Chip is one of the most popular Banana chips production is one of the
delicacies in the Philippines. It tastes good, sweet, sources of livelihood in some barangays in Tangub
crunchy and one of the “Pasalubong” and specialty in City. In Barangay Minsubong, Tangub city, the 4Ps
the city because most of the tourists are eager to buy. beneficiaries manufactured banana chips for their
It is of high demand due to its characteristic flavor livelihood. It is considered as an additional income
and taste. In the production of banana chips, it also for the 4Ps beneficiaries of Banana Chips
has its own facilities like building and equipment. It Organization to sustain their daily needs. However,
must have a business permit like: BFAD and DTI for the production of banana chips of Barangay
the business to work. It is very viable alternative of Minsubong is very much affected by some factors,
livelihood for the unfortunate people and the causes to the decline of the production and they need
housewives. This type of livelihood helps to alleviate to stop the business operation.
women from poverty, and eventually raise the human
development index. Thus, this study was conducted to identify
the factors affecting for sustainable development of
According to Khader (2007), chips are the banana chips in the business operation of Banana
most popular snack item in many fast food outlets. Chips Organization in Barangay Minsubong. This
Fried banana chips may be one of the important would help the said organization and at the same time
potential banana products. Banana chips may be also the beneficiaries of the banana chips production in
easily saleable snack food in the market. They are not identifying the causes of the business decline and in
only a staple food crop for millions of people, but enhancing their next possible business operation.
they also provide an essential source of income
through local and international trade (Frison, 2010). This study anchored on the insights and
Elkhalifa (2014), added that banana chips have a high concepts of different authors whose works are
market potential particularly when wasted banana is significantly relevant in this research.
concerned. It represents different source of nutrients
According to Jain (2015), sustainable
well characterized by its mineral nutritional value and
development can be defined as a development that
reasonable energy supply. Banana chips provide extra
meets the needs of the present without compromising
minerals especially phosphorus and potassium. In
the ability of the future generations to meet their own
other words, the chips are good source of energy.
needs. Sequeira (2012), stated that the production of
banana chips is an important industry in the country Murray (2016), specified that an
particularly in the southern island of Mindanao and establishment is a place where business is conducted,
with that, banana chips have become one of the key goods are made or stored or processed or where
products in the Mindanao region as a source of services are rendered. Kriesberg (2009), said that
livelihood. Chadha (2012), added that among chips, manufacturers must see the importance of the
banana is accounted for the highest production and production establishment as a means by which the
they contributed 31 per cent of the total food portion of the processed products is rest assured that
production. There had been a phenomenal increase in is to sustain the business operation. In addition,
the production and productivity of banana chips. sustainable development underlies in establishment.
Moreover, banana chips industry is a good source of It gives a place of production and a storage stability
income (Manojkumar, 2014). of the banana chips being produced. Keeping this in
view, the quality aspect of banana chips will be
As stressed by Amadeo (2016), financial assured and reduces damage and thus suggest ways
capital is the money, credit, and other forms of and means for production of good quality banana
funding that companies use to invest in their chips (Amiruzzaman, 2015). Moreover,
businesses. Anand (2009), stated that financial capital establishment is one of the factors that affects banana
is the major requirement for sustaining the chips production and sustainability of banana chips
availability and production of banana chips as it is the industry (Hayeer, 2013).
foundation of purchasing the supplies of the chips.
Khin (2013), added that financial capital is necessary Kathirvel (2012), pointed out that
to process a large range of banana chips and it is an management inadequacy was the major problem in
indicator to business development and sustainability. the production of banana chips. Business
Furthermore, a considerable investment in this sustainability and development refers to economic
industry is still required and it is essential that results that flow from the proper management of the
researchers, investors and indeed the general public business operation (Jasdanwalla, 2015). In relation to
are made aware of the global importance of banana that, Joseph (2011), said that when looking banana
chips industry, in order to ensure its sustainability chips development issues, it is very important to view
and improvement in the future (Frison, 2010). production and management as two interrelated and
interdependent activities. Indeed, an inefficient
According to Goldsby (2014), transportation management system acts as a disincentive to
is a major contributor to the economy and a manufacturers and thus lowers production. Lentican
competitive force in business and it is the activity that (2010), states that the gains in the production system
connects the business to its supply chain partners and as a result of improved technology, establishment, or
is a major influence on the customer’s satisfaction better financing schemes will not have much impact
with the company. Sharrock (2015), stated that on the incomes of the manufacturers if the
transportation would be a great help in distributing management system is inefficient. He continues to
the produced banana chips into different places. On say that production is considered as the "door" to
the other hand, there must be a proper transportation agricultural productivity and management as the
of processed products that helps to satisfy the "key" that opens the lock.
customers and fulfill the requirements of the market
demand (Su, 2011). Duraisingh (2008), suggested Financial Management is an essential part of
that in order to sustain the banana chips development, the economic and non-economic activities which
the government should arrange adequate and cheap leads to decide the efficient procurement and
means of transport facilities for the banana chips utilization of finance with profitable manner
operation. In addition, transportation can ensure (Paramasivan, 2013). Kuchal (2007), supported that
product safety and quality that reaches the consumer, business concern needs financial management to
residing far away from the production area meet their requirements in the economic world most
(Mohapatra, 2010). specially in terms of business sustainability and
development. Moreover, sustainability and
development of a business needs financial This study aimed to identify the factors
management, because it requires efficient affecting the sustainable development of banana
procurement, utilization of resources, funds, chips of Minsubong 1 Banana Chips in Minsubong,
operating expenses etc. These expenditures are Tangub City. Specifically, this sought answers to the
decided and estimated by the financial department following questions: What affects the sustainable
and the finance manager allocates the appropriate development of banana chips in terms of; 1 financial
finance to production department. The financial capital; transportation; establishment; management;
manager must be aware of the operational process financial management; operations management; and
and finance required for each process of production human resource management.
activities to sustain its productivity (Solomon, 2010).
The result of this study will be beneficial to
Operations management focuses on the following:
carefully managing the processes to produce and
distribute products and services (McNamara, 2011). Banana Chips Organization. This study may
In relation to that, business operation management is provide alternatives respond regarding the factors
the heart of productivity and way for sustainability. affecting the livelihood production in Barangay
For the development and sustainability of the Minsubong, Tangub City.
business it needs honest and critical analyzation of
Local Government of Tangub City. It may
the current operations and considers the changes
improve revenue collection and develop a well-
necessary to move toward sustainability (Elkington,
constructed spot for business.
2013). In addition, a deeper understanding of
operations management is still needed for Businessmen. The result of this study will
sustainability of an enterprise. Thus, sustainability is help them in developing and sustaining their business
first positioned within the enterprise on the operation.
managerial and operational level (Opresnik & Taisch,
2009). Future Businessmen. This study will serve
as their guide in their hope to become successful
Lastly, human resource management affects businessmen someday.
the sustainability of the business because HR
personnel are the one who is responsible for III. METHODS
enhancing the organizational capability by
understanding what the business needs and what This study used a quantitative survey
people, knowledge, skills and culture need to be in research method. This study was conducted at
place to deliver those needs. As increasingly Minsubong, Tangub City, Misamis Occidental where
companies adopt strategies for sustainable business, the Minsubong 1 Banana Chips, manufactured by 4Ps
so too does HR’s understanding of how their role, not beneficiaries for their livelihood. Minsubong is a
only as a business partner, but as a sustainable peaceful barangay wherein crops and banana
business partner, need to evolve (Branson, 2014). plantation is wide. Every household has their own
Cohen and King (2010) added that human resource land that they are farming and this is where the
management has the ability to generate a significant respondents get the raw ingredient such as banana for
social, environmental, and economic impact. To production. The people are depending on farming for
achieve sustainability development in business, it is their livelihood and few residents are only at the
imperative for organizations to place high priority on place.
their internal human capital. Essentially, the purpose
A research-constructed questionnaire was
of HRM is to maximize the productivity of an
used in this study. It determined the factors affecting
organization by optimizing the effectiveness of its
the Sustainable Development of Banana Chips
employees (Gubman, 2015).
business of the 4Ps beneficiaries of Minsubong 1
Banana Chips in Minsubong, Tangub City. The
researcher prepared the questionnaires that were 2.51-3.25 - The respondents signify that they agree
distributed to the intended respondents. This was on the indicators of sustainable development.
used in order to generate answers from the
respondents; and this served as the instrument in 1.76-2.50 - The respondents signify that they disagree
gathering the necessary facts for the study. on the indicators of sustainable development.

The researcher conducted a pilot testing 1.00-1.75 - The respondents signify that they strongly
through Cronbach Alpha as the statistical tool for the disagree on the indicators of sustainable
reliability of the questionnaire. As a result, 0.84 for development.
the sustainable development and the closer
IV. RESULT AND DISCUSSIONS
coefficient is to 1.0 the greater the internal
consistency of the items in the scale. The Cronbach’s Table 1. Respondent’s Responses on Financial
Alpha signified that the internal consistency of the Capital of the Banana Chips Business
items is good enough to be administered to the actual
respondents.

The researcher conducted personal Indicators Mea Interpret


n ation
interactions with the participants through the use of
1. There are sufficient financial capital resources 3.17 Agree
questionnaire that served as the data gathering tool. for sustainable development of banana chips.
When they were done answering, the gathered data 2. There is a credit line that can support the 3.17 Agree
were retrieved, tabulated, analyzed and interpreted to sustainable development of banana chips.
meet the necessary details of the study. 3. The acquisition of funds for the production of 3.17 Agree
banana chips is fast.
To address the main aim of this study the 4. There is a proper utilization of funds acquired for 3.10 Agree
researcher used research-constructed questionnaires. the production of banana chips.
The data findings were quantifiably analyzed and 5. The association has a bank account to which can 3.17 Agree
objectively interpreted using weighted mean and secure the funds.
arithmetic mean. Weighted mean was used to Grand Mean 3.16 Agree
interpret the factors affecting the sustainable
development of banana chips business in Minsubong,
The table presents the respondents’ response
Tangub City. It was used to get the average of
on financial capital and it shows that all the indicators
sustainable development factors to each indicator
are agreed by the respondents. This means that the
presented in the tool. Also arithmetic mean was used
respondents agree that there are sufficient financial
to determine the average score of each variable. In
resources for sustainable development of banana
the scoring procedures, the researchers employed the
chips, there is a credit line that can support the
following interpretation table for weighted mean to
sustainable development of banana chips, the
effectively interpret the data gathered.
acquisition of funds for the production of banana
Numerical Hypothetical Qualitative chips is fast, there is a proper utilization of funds
Value Mean range Description. acquired for the production of banana chips and the
4 3.26 – 4.00 Strongly Agree association has a bank account to which can secure
3 2.51 – 3.25 Agree the funds which can help in sustaining their banana
2 1.76 – 2.50 Disagree chips business.
1 1.00 – 1.75 Strongly
Disagree Anand (2009) stated that financial capital is
Verbal Interpretation the major requirement for sustaining the availability
and production of banana chips as it is the foundation
3.26-4.00 – The respondents signify that they in purchasing the supplies of the chips. It is supported
strongly agree on the indicators of sustainable by Talentedge (n.d.) that effective and efficient fund
development. utilization acquired during the production enables
organizations in profit and wealth/ returns of communications and transport of goods/ product
maximization, minimization of the cost of capital, come to acquit business needs to sustainable
improving savings and bettering its value. It is, development (Bennett, 2016).
therefore, extremely important that the finances of
the organization are managed in the most efficient Table 3. Respondent’s Responses on Establishment
and effective manner to ensure long-term viability, of the Banana Chips Business
sustainability and profitable.

Table 2. Respondent’s Responses on Transportation Indicators Me Interpretatio


an n
of the Banana Chips Business
1. There is a well-developed building for the 2.0 Disagree
production of banana chips. 0
Indicators Mean Interpre 2. There is an observation of cleanliness in the 3.5 Strongly
tation establishment while producing banana chips. 7 Agree
1. The distribution of stocks of 1.93 Disagree 3. There are safety equipment’s ready in case 1.2 Strongly
banana chips is efficient. of emergency. 3 Disagree
2. There is a vehicle ready for 1.37 Strongly 4. There is a proper storage area for finished or 1.4 Strongly
delivery of banana chips. Disagree unfinished goods. 3 Disagree
3. There is maintenance for the 1.20 Strongly 5. There are business and sanitary permit. 1.2 Strongly
vehicle that is being used for Disagree 3 Disagree
transportation. Grand Mean 1.8 Disagree
4. The vehicles used are well- 1.30 Strongly 9
developed for long range areas. Disagree
5. There is well-defined means of 1.17 Strongly
communications and Disagree
transportation of goods/ products.
Grand Mean 1.39 Strongly Table 3 illustrates the data of the
Disagree respondents on the establishment of their banana
chips business. As shown in the table, the
respondents strongly disagree that there are safety
equipment ready in case of emergency, there is a
The table shows the respondents’ responses proper storage area for finished or unfinished goods
on transportation of their banana chips business. As and there are business and sanitary permit which
reflected in the table, the respondents strongly greatly affect the sustainable development of their
disagree that there is a vehicle ready for delivery of business.
banana chips, there is maintenance for the vehicle
that is being used for transportation, the vehicles used Kriesberg (2009), said that establishment is
are well-developed for long range areas, and there is important as a means by which the portion of the
well-defined means of communications and processed products is rest assured. On the other hand,
transportation of goods / products which can affect to licenses and permits either give a business approval
the sustainable development of their business. to do an activity or help protect a business and its
employees and adequate sanitation coverage is an
Graham (2007) stressed out that the means absolutely necessary component of sustainable
of communication and transport of product can make development of the business (Eklof, 2014).
or break a company. A good transportation system Moreover, having business and sanitary permit can
quite simply means the company has greater chance significantly increase the number of businesses and
of selling its products more than its competitors. The help to nurture employment creation. By setting
company that spreads its products wider and faster technical standards, it will ensure that permit would
into the market place at lower costs than its fulfill legitimate regulatory functions. (World Bank,
competitors will make greater margins absorb raw 2006).
material price rise better and last longer in tough
market conditions. Moreover, a well-defined means
appropriate audits of financial records and procedures
and take steps to correct problems as they arise.
Table 4. Respondent’s Responses on Financial
Management of the Banana Chips Business Table 5. Respondent’s Responses on Operation
Management of the Banana Chips Business
Indicators Mean Interpre
tation Indicators Mean Interpre
1. There is an open inventory 3.30 Strongly tation
record book for the product. Agree 1. There is an appropriate pricing of 3.57 Strongly
2. There is a proper utilization of 3.13 Agree processed products. Agree
funds acquired for the 2. There is proper machinery used in Disagree
production of banana chips. the production of banana chips. 1.83
3. They keep the financial records 3.20 Agree 3. There is a proper processing of 2.07 Disagree
including income and expenses. banana chips.
4. There is a proper acquisition 3.10 Agree 4. There is a proper inspection in 1.87 Disagree
planning of funds for the every processed product.
financial resources of the 5. There is a proper transport of 1.67 Strongly
business. banana chips to the market. Disagree
5. There is a proper management in 3.17 Agree Grand Mean 2.20 Disagree
the procurement process of the
business.
Grand Mean 3.18 Agree

The above table presents the respondents’


response on operation management of their banana
The table above shows the data of the chips business. It is shown that the highest mean is
respondents on the financial management of their 3.57 which indicates that the manufacturers strongly
banana chips business. It is shown that the highest agree that there is an appropriate pricing of the
mean is 3.30 which means that the respondents processed product. However, the least mean is 1.67
which signifies that the respondents strongly disagree
strongly agree that there is an open inventory record
that there is a proper transport of banana chips to the
book for the product which can help for the market in which can affect for sustaining their banana
sustainable development of their banana chips chips business. In addition, the grand mean of 2.20
business. The lowest mean is 3.10 which mean that which reveals that the respondents disagree to the
the respondents agree that there is a proper indicators of operation management for sustainable
acquisition planning of funds for the financial development of their banana chips business.
resources of the business. Moreover, the grand mean
According to McNamara (2011), operations
is 3.18 and discloses that the respondents agree to the
management focuses on carefully managing the
indicators of financial management for sustainable
processes to produce and distribute products and
development of their banana chips business.
services. In addition, proper transport of goods is
Shilpa and Rakesh (2013) said that financial more vital economic activities for a business. It is the
management cannot be addressed without first activity that physically connects the business to its
designing a strategy to ensure the proper acquisition supply chain partners, such as suppliers and
planning of funds for the financial resources of the customers, and is a major influence on the customer’s
business. Wastage of funds will only result in the satisfaction and business sustainability (Osakede et.
business short and long-term objectives not being met al., 2015).
and ultimately loss. Bentz (2010) supported that
misappropriation of acquisition planning of funds for
the financial resources negatively affects business'
ability to carry out sustainability. To protect against
these eventualities, organizations should conduct
manpower also has the right number of workers with
the right skills for the right tasks at the right time.

Table 6. Respondent’s Responses on Human


Resource Management of the Banana Chips Business Table 7. Summary of Respondents’ Response on the
Factors of Sustainable Development of Banana Chips
Indicators Mean Interpre
tation
1. There is an assigned person 3.47 Strongly
Factors Mea Interpretation
in every aspect of the business. Agree
n
2. There is an assigned person 3.17 Agree
Financial Capital 3.16 Agree
who supervises the business.
Establishment 1.89 Disagree
3. There is an enough number 3.37 Strongly
Transportation 1.39 Strongly
of manpower in the whole Agree
Disagree
production.
Management 2.87 Agree
4. There is a proper utilization 3.17 Agree
of human resources.
5. There is a proper allocation 2.90 Agree The table shows the summary of
of manpower. manufacturers’ responses on the factors of
Grand Mean 3.22 Agree sustainable development of banana chips. The data
discloses that among the 4 factors, transportation is
the most common factor that affects the sustainable
development of the banana chips business with a
The table above shows the data of the grand mean of 1.39 which revealed that the
respondents’ response on the human resource respondents strongly disagree to its indicators. In
management of their banana chips business. Based on addition, the establishment has a grand mean of 1.89
the data, the respondents strongly agree that there is and operation management is the problematic factor
an assigned person in every aspect of the business in management that gets a grand mean of 2.20
with the highest mean of 3.47 and there is an wherein both were interpreted as disagree.
assigned person who supervises the business with a
mean of 3.37. In addition, the respondents agree that According to Brundtland (2015), the
there is an assigned person who supervises the business that seeks a sustainable development should
business, there is proper utilization of human understand that sustainability is a business-wide goal
resources and there is a proper allocation of that incorporates every aspect of the business and its
manpower that helps in sustaining their banana chips relationships. In other words, sustainability requires
business. The grand mean of 3.22 implies that the proper management, finances, fully equip
respondents agree to the indicators of human resource establishment, etc. to maximize social,
management for sustainable development of their environmental, or economic impacts.
banana chips business.

Gubman (2015) stressed out that in order to


achieve sustainability development in business, it is
imperative for organizations to place high priority on
their internal human capital. Moreover, Puri (2009)
also added that manpower allocation is an important
process that: (1) enables organization to determine
the most efficient manpower composition (2)
provides a foundation to recruit and/ or reorganize
the manpower to achieve goals and sustainable
development of the business. Proper allocation of
The production and operation of banana
chips is very much affected by the factors that cause
for not sustaining their banana chips business
namely: transportation, establishment, and operation
V. CONCLUSION AND RECOMMENDATIONS
management. Moreover, among the three factors,
The study on the Sustainable Development transportation was the factor that greatly affects the
of Banana Chips in Tangub City sought to determine sustainable development of their business. Thus, it
the factors affecting the sustainable development of caused to the decline of the production and they need
the banana chips in Barangay Minsubong, Tangub to stop the business operation.
City. There were four factors covered in this study
The following recommendations are offered
namely: financial capital, establishment,
to operate back and improve the banana chips
transportation, and management. In management
business production which will lead to a sustainable
factor, there were sub-factors namely: financial
development of banana chips business:
management, operation management, and human
resource management. The data were taken from 30 1. The manufacturers must look for an
members of the 4Ps beneficiaries who were the organization that is willing to invest, provide
manufacturers of the banana chips. This study a well-developed establishment and a means
employed a quantitative method of research and used of transportation intended for the production
a research-constructed questionnaire as the tool used and operation of the banana chips.
in gathering the data. Therewith, it is convenient for them to
produce the banana chips and they can
It was found out that the respondents agree
easily distribute their product not only in the
to financial factor and to the sub-factors of
limited stores within the city but also to
management namely: financial management and
nearby cities. In that way, the manufacturers
human resource management. Among the three
will cover a wide range of market and thus,
factors, the human resource management got the
they can generate sales and increase profit to
highest grand mean of 3.22 which meant that the
attain sustainable development of banana
respondents agreed to the indicators of human
chips.
resource management for sustainable development of
banana chips. The financial management had a grand
2. The manufacturers must undergo a training
mean of 3.18 and the financial capital with 3.16
and seminar on operation management so
wherein both interpreted as agree. On the other hand,
that they can carefully manage and analyze
transportation, establishment and the sub factor of
the process to produce and distribute their
management which was the operation management
finish product.
were the factors that affect the sustainable
development of banana chips. The operation
3. The organization must appoint personnel
management had a grand mean of 2.20 and the
who will manage and supervises the entire
establishment with 1.89 wherein both interpreted as
operation and production for the smooth run
disagree. Moreover, transportation got the lowest
of the business.
mean of 1.39 which revealed that the manufacturers
strongly disagree to its indicators that affect
4. The organization must provide safety
sustainable development of banana chips. Therewith,
equipment in case of emergency for
it greatly affected to the production of banana chips
additional workplace protection to
in a way that their operation was not efficient enough
manufacturers when all other safety
which led to the unsustainability of their business.
measures are applied.
With the summary stated, the given conclusion is
drawn. 5. The banana chips business must be
registered with Securities and Exchange
Commission to have a business permit and Bruntland, W. (2015). An Introduction to Sustainable
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safeguarding public health and safety,
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or managing limited natural resources. Production and Marketing of Banana in Kardur
District. Retrieved on July 27, 2018 from
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