A Case study on a Marine Products Processing Center: A Start-UP Social Enterprise of Damgo sa Kaugmaon Inc. in Bantayan, Cebu

Date

7-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dinah Pura T. Depositario

Committee Member

Normito R. Zapata, Jr., Nanette A. Aquino, Agnes T. Banzon

Abstract

Dried danggit is popularly sourced in Bantayan Island, Cebu and is a source of livelihood to the fisherfolks. However, due to unsustainable fishing practices, the marine habitats are degraded, resulting to the decrease of danggit supply. As a result, Damgo sa Kaugmaon, Inc. (DAMGO), a local Non-Government Organization (NGO) in the island established a social enterprise, the Marine Products Processing Center (MPPC), with the goal of helping these fisherfolks and conserving and protecting the island’s marine ecosystem.

This study aimed to analyze the MPPC and develop strategies and plans for it to be sustainable. Specifically, it aimed to 1) present the business environment of the fish drying industry in Bantayan Island, Cebu; 2) present and evaluate the Marine Products Processing Center on its four business functions; 3) determine the problems and issues faced by the social enterprise; 4) formulate and evaluate the strategies/plans in addressing the identified problems and issues of the business; and 5) recommend strategies and plans to be implemented.

Descriptive research design was used for this study. Primary data were gathered through key informant interviews, structured questionnaires, market survey, focus group discussions and store checks. Secondary data like industry analysis and marine ecosystem surveys were gathered from reports, publications, studies, researches, and unpublished references. The data gathered were presented and analyzed using External and Internal Analysis, Michael Porter’s Five Forces Model, Problem Analysis, and SWOT Analysis. Results showed that the MPPC’s four business functions must be improved for it to be competitive and profitable. The MPPC as a social enterprise was also considered as ineffective in its social value activities and meeting its objectives on social sustainability. It was also determined that suppliers have high bargaining power while buyers have low bargaining power and the threat of new entrants, threat of substitution and rivalry among competing firms are high.

The identified management issue faced by MPPC is its inability to be financially sustainable. The identified problems related to operations were the dryers’ inability to properly dry the products, high water content and substandard quality of the product, and the underutilization of the dryers. On the other hand, problems associated to marketing were limited product shelf life, the lack of marketing efforts and the low demand for the MPPC’s current market. As for the organization related problems, there were lack of staff and dedicated marketing officer. Lastly, the problems related to finance were forgone revenues, low sales and financial losses.

The formulated strategies using the SWOT Matrix were: 1) Backward Integration; 2) Research and Development; 3) Product Development; 4) Market Development; and 5) Related Diversification. These formulated strategies were then integrated to the proposed four business functions of the MPPC.

The proposed changes started with the proposed mission and vision statements. This was then followed by the recommendations for the four business functions starting with the proposed changes on the marketing such as targeting new market, adding a customer value proposition and modifying the marketing mix by adding new products and reinventing the packaging and product label. In terms of the proposed changes made on the operations, it was recommended to tap additional fisherfolks that catch squid, dilis and tabagak, to modify the solar dryers given by DTI, to employ new process, services and production capacity. Furthermore, it was recommended to the organization to increase the wage and salary of workers and staff, to hire a new marketing officer and to conduct training for Research and Development under the DOST. It was evaluated that the following changes in the business functions would result to a profit of Php 17,155.21 per production cycle at the new production capacity. This would result to MPPC attaining financial sustainability and achieving its objectives as a social enterprise.

Language

English

LC Subject

Seafood industry

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 M66

Notes

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Document Type

Thesis

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