Business Continuity: A Case Study on Mr. Cabatay's Fish Farm Business in Binangonan, Talim Island

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Glenn N. Baticados

Committee Member

Eliza C. Aquino, Juan Paulino S, Trespalacio, Junior, Mar B. Cruz

Restrictions

Restricted: Not available to the general public. Access is available only after consultation with author/thesis adviser and only to those bound by the confidentiality agreement.

Abstract

Aquaculture, the breeding and harvesting of marine organisms, is the largest subsector within the fisheries sector. However, the aquaculture industry has been experiencing a decline in production volume over the past decade. This research focuses on Mr. Rogelio Cabatay's fish farm on Talim Island, Laguna de Bay which has faced significant challenges leading to significant losses and risking business continuity.

Mr. Rogelio's fish farm, like many others, has encountered a decline in production volume and revenue due to various factors. The most prominent among these factors are environmental. These include damage caused by typhoons, slow growth of fingerlings, fish kills and other unfavorable water conditions. Theft, and government interventions such as the relocation of fish pens and cages adds up to the immediate issues. The fish farm business financial health is in critical condition. However, inevitable risk factors continue to threaten business continuity.

This research aims to analyze the production and business continuity of Mr. Rogelio's fish farm on Talim Island. The specific objectives are to describe the business environment and local aquaculture industry, profile the entrepreneur and his fish farm business, analyze the external and internal environment, and recommend strategies to address threats and opportunities.

Qualitative research methods, specifically the Key Informant Interview (KII) design, were employed. Face-to-face interviews and questionnaires were conducted with Mr. Rogelio Cabatay, the owner and operator of the fish farm. Financial data collection was done through a separate interview via Facebook chat. Secondary data from credible online sources were also gathered. Data analysis involved organizing internal factors by business function, financial ratio analysis, and benchmarking production performance with industry standards. The VRIO framework and PESTEL analysis were used to evaluate the internal and external environment, respectively, and SWOT analysis informed the formulation of strategic recommendations.

The local aquaculture industry in Talim Island faces moderate competition, with barriers to entry providing some protection. Supplier and buyer bargaining power are high depending on availability and the number of options. Substitutes pose a low threat, while industry rivalry is high. Moreover, Mr. Rogelio's fish farm encounters challenges across political, economic, social, technological, legal, and environmental factors. The lack of awareness and information dissemination about aquaculture programs and subsidies adds financial strain, especially during natural disasters. Efforts to improve farm-to-market roads are underway, but the inflation rate raises the cost of operation such as transportation. Reliance on environmental factors like water quality remains a significant issue. Communication of policies, costly permit renewals, and illegal farms further contribute to industry challenges. The main internal risk factor for Mr. Rogelio's fish farm is its failing financial health, influenced by factors including inevitable environmental risks. Theft and under-maximized production contribute to the financial strain. The analysis implied that Mr. Rogelio’s fish farm does not completely meet the industry standards in terms of production. Moreover the financial crisis worsened due to the aggressive use of debt financing.

To restore the financial health of the fish farm, temporary production decrease during poor water quality, consultation on water quality, thorough checking of pen and cage damages, and investment in fish inputs with survivability rate are recommended. Other strategies include considering harvest period, acquiring technical knowledge, improving laborer morale, renting out unused pens and cages, deleveraging through debt payments, asset selling for liquidity, scouting cheaper input sources, reducing transportation costs, diversifying income sources, and seeking government assistance and subsidies.

This study provides an analysis of Mr. Rogelio's fish farm business, considering internal and external risks, with the aim of formulating sustainable short term and long-term strategies. The findings and recommendation can benefit the selected fish farm, other researchers, relevant authorities and policymakers, as well as small fish farm owners on Talim Island and aquaculture practitioners in general. Effective risk management strategies and business continuity planning are crucial for agribusinesses in the face of various risks and changing business environments.

Language

English

LC Subject

Fish culture--Case studies

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 C33

Document Type

Thesis

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