Don Leon Nature Farm Inc: A Case Study

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Fitz D. Jimenez

Committee Member

Mar B. Cruz, Rei Chino C. Pua, Melodee Marciana E. De Castro

Abstract

Agritourism in the Philippines has grown significantly over the years from initially being recognized and promoted in 2002 with the identification of ten agritourism sites in the country to becoming one of the global leaders in agritourism, with over 170 accredited farm tourist sites. Agritourism farms offer benefits beyond profit and tourist appeal. Adopting organic farming methods can also support environmental sustainability and long-term profitability.

Batangas, particularly within the CALABARZON region, are crucial to the country's agricultural output. Among its towns, San Juan, Batangas, stands out as a famous tourist destination, renowned for its beaches, and was awarded for its tourism-driven initiatives, making it a perfect location for the growth and expansion of additional tourism enterprises such as agritourism farms. Within San Juan, Batangas, an eight-hectare integrated and diversified organic agritourism farm is located, known as Don Leon Nature Farm. The farm is the only TESDA-accredited organic agritourism farm school in the town that offers scholarships for organic agriculture production (NC II). It also engages and operates in farm tourism, crops, ornamental plants, livestock production, and vermicomposting, and has learned to adopt value-added processes. The farm is a family business corporation, owned and being managed by its president Dr. Noel S. Gutierrez, and his family, together with their five permanent employees and 8-12 on-call employees.

It is known that a well-managed agritourism farm can contribute significantly to social communities by offering business opportunities, employment, and participation in the agritourism industry through their services. However, managing an agritourism venture poses considerable challenges. Many businessmen have encountered numerous obstacles in the process, and this is also evident in Don Leon Nature Farm. Hence this study was conducted to assess the overall business performance of the Don Leon Nature Farm considering the limited availability of data on agritourism farm performance and the factors that influence the failure or success of the business from the management perspective. The findings of this study can aid in formulating and developing strategic management approaches, which also requires meeting a set of objectives such as (1) present the profile, vision, mission, and general information of the agritourism farm business (2) describe the general and task environment surrounding and affecting the farm (3) discuss the overall business operations of the farm in terms of finance, marketing, production/operations, and personnel/human resources (4) assess the challenges, issues, and factors faced by the farm that are essential in achieving farm productivity; and (5) formulate recommendations and strategic plans that will aid in increasing farm productivity and improving the farm's chances of survival in light of the changing environment.

This study employed a descriptive research design, specifically utilizing the qualitative case study approach and quantitative analysis of the financial aspect of the farm. The data utilized to obtain essential information for evaluating the farm business performance were both from primary and secondary sources. Primary data is composed of observation, on-site and video call interviews using a set of questionnaires while secondary data includes three years of financial statement reports, files, and documents provided by the farm, and the data gathered from various research materials, journals, and publications that are all essential in the study.

The study also assesses the external and internal environment of the farm by using PESTLE analysis for the general environment and task environment analysis for the task environment. The internal analysis focused on marketing, finance, production, and personnel. In addition, various evaluation tools like Michael Porter’s Five Forces, Financial Ratio Analysis, Horizontal Analysis, and SWOT listing were employed to analyze the external and internal state of the business. These analyses identified farm business issues and problems that are relevant in the formulation of alternatives, recommendations, and strategic management approaches that the farm may opt to adopt.

The problem flow chart of Don Leon Nature Farm Inc. reveals that the farm’s informal organizational structure leads to an overreliance on the owner and a lack of clear tasks and responsibilities among its few employees resulting in slow decision-making and confusion among the employees. Dr. Gutierrez handles most administrative, tour, and technical duties, while employees focus on labor-intensive tasks. Poor management practices are further intensified by the limited marketing exposure and reliance of the farm on traditional promotion methods by only utilizing Facebook to promote their products and services, leading to financial struggles. Additionally, the farm suffers from poor production due to natural disasters and disease outbreaks, leaving parts of the farm unused. These inefficiencies and low productivity prevent the farm from meeting market demand, resulting in decreased sales, net losses, and an inability to pay off debts or achieve growth.

After evaluating various options, the researcher recommends that Don Leon Nature Farm Inc. pursue a turnaround strategy that specifically focuses on restructuring strategy. The strategy is necessary to develop a clear organizational framework, streamline operations, increase marketing efforts, reduce production risks, and improve financial stability, preparing the farm for long-term growth and success.

Language

English

LC Subject

New agricultural enterprises, Farm supply industries

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 R49

Notes

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Document Type

Thesis

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