A Case Study of Casile-Guinting Upland Marketing Cooperative Focusing on Coffee Production

Date

5-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Cherry Lou R. Nuñez

Committee Member

Jeanette Angeline B. Madamba, Rachelle A. Mariano, Melodee Marciana E. De Castro

Abstract

The coffee industry in the Philippines remains a significant source of livelihood for local farmers and businesses. However, the supply of coffee has been generally declining in the country despite its continuously growing demand. Casile-Guinting Upland Marketing Cooperative, the primary subject of this special problem report, is a cooperative that primarily processes and markets coffee in Barangay Casile, Cabuyao City, Laguna. The community in the area had been producing coffee for 30 years before the cooperative’s establishment in 2011. It has a record of 202 members, 68 of which are coffee farmers with combined coffee farms of approximately 25 hectares. At present, the cooperative’s manager is Ms. Michelle Dela Cruz who has been serving the cooperative for almost 9 years.

The study entitled “A Case Study of Casile-Guinting Upland Marketing Cooperative” was conducted to assess the business performance of Casile-Guinting Upland Marketing Cooperative in Barangay Casile, Cabuyao City, Laguna. The specific objectives were to (a) describe the current state of CGUMC’s performance in each of its four business functions; (b) identify the internal and external factors affecting CGUMC’s business environment and their implications; (c) examine the critical issues faced by CGUMC and its members; (d) generate and evaluate the potential impact of each strategy to the critical issues; and (e) design an implementation plan for the top strategy.

The researcher employed a case study approach that utilized both primary and secondary data to gather information for the study. The primary data were acquired through key informant interviews conducted with five members of the cooperative. Meanwhile, the secondary data were obtained from existing sources such as documents provided by the cooperative including access to its financial statements for the last five years and company profile. Others were collected from research materials and other publications pertinent to the study.

The analytical framework for the study centralized on the strategic management process adopted from Ketchen and Short (2013, p. 32), a four-stage process as follows: (1) understanding strategy and performance, (2) environmental and internal scanning, (3) strategy formulation, and (4) strategy implementation. The primary and secondary data aided in understanding its strategy and performance. Meanwhile, the PESTLE analysis for the external environment and the assessment of the core business functions were used to scan the environmental and internal factors affecting the cooperative. Furthermore, the SWOT analysis was conducted to outline key internal and external factors. On the other hand, the problem identification and analysis determined the core issue in the cooperative. Both of these aided in the formulation of strategies for the cooperative. Finally, the strategic plan or the end output for the study was designed for the implementation of strategies.

The problem flowchart identified the cooperative’s unorganized management structure as the core problem, which primarily affects member involvement and operational efficiency. The primary causal factors include (a) communication gap between management and members, (b) lack of general reserve funds, (c) failure to distribute interest on share capital and patronage refund, and (d) declining revenues. Meanwhile, the secondary causal factors include (a) inefficient supply chain, (b) poor management practices, (c) low brand visibility, (d) weak pricing strategies, and (e) vulnerability to cost fluctuations.

The strategic plan provided a proposed strategic direction for the cooperative including new vision and mission statements. Specific goals were also proposed centralized to the primary goal of uplifting the lives of Casile-Guinting Upland Marketing Cooperative members. The overall strategy formulated was to amend the current organizational structure into one that better streamlines processes within the cooperative across all business functions. Specific yet interconnected strategies were also formulated for each business function, all of which aligned with the overall strategy’s primary goal.

Language

English

LC Subject

Marketing cooperatives, Coffee industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 C365

Notes

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Document Type

Thesis

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