Strategic Options for Operationalizing an Agri-based Startup: The Case of Masikhay Microplant Nursery

Date

1-2018

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Arlene C. Gutierrez

Committee Member

Jeanette Angeline B. Madamba, Gemma U. Reyes, Agnes T. Banzon, Normito R. Zapata, Jr.

Abstract

As one of the leading agricultural export products of the Philippines, banana remained as an important commodity in the country. Despite its good performance in the export market, production-related problems were still inevitable. One of which was the quality of planting materials used in the production. But due to advances in technology, several new methods of growing quality planting materials have already emerged. Among these is the use of tissue culture technology. The study analyzed the Philippine banana industry through the perspective of Masikhay Microplant Nursery, a micro-scale agri-based business enterprise in Los Baños, Laguna engaged in production of banana planting materials through the tissue culture technology. The study aimed to provide a substantial analysis, assessment, and formulation of business strategies and implementation plan for the business enterprise, in order to showcase how an agri-based startup business could stably and strategically operate in the banana industry in Laguna.

The analysis of the business strategies of the business enterprise were subjected through the use of methods of in-depth interviews, observations, and record keeping through the set of questionnaires provided to Mr. Emmanuel Bernardo, the owner of Masikhay Microplant Nursery. The study made use of both qualitative and quantitative research methods through the provision of financial statements, descriptive statistical data, and historical data of the business (e.g. list of orders, list of procured equipment, etc.) in order to validate the viability of the study. The analysis of the data acquired was based on the historical data provided by Mr. Bernardo; accompanied by the author’s self-perception towards the observed business operations, the data provided by some of the governmental institutions, and as well as the data provided by the owner himself which then after reflected the current state of both the external and internal environment of the business based on the assessment of the business’ external environment, it was found out that the Philippine banana industry is still attractive as evidenced by the existing gap between the supply and demand of banana planting materials all over the Philippines, and in Laguna in specific. This served as a great opportunity to Masikhay Microplant Nursery to scale up its operations to take advantage of the unmet demand.

Several options were presented in order to help the business to take off and take advantage of the existing opportunities in the industry. These are (1) Selling Full Grown Banana Plantlets, (2) Selling banana Meriplants; and (3) Selling a combination of full grown plantlets and banana meriplants. Investment analysis tools were used to assess the attractiveness of each of the option. Implementation plan that shall suit the current external and internal environment of the business, and shall earn the largest return for the business in the long run were also considered. Upon assessing, analyzing, and formulating the strategic business options for the business, it was recommended that Mr. Bernardo, should opt to produce and sell at a 60:40 ratio combination of the fully-grown banana plantlets and the banana meriplants. The strategic option generated the highest NPV which ranged from Php5,249,291 to Php8,466,020 and the best IRR which ranged from 15% to 30% over the 10-year project life.

Language

English

LC Subject

Banana trade, Business enterprises--Case studies

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2018 M17 R43

Notes

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Document Type

Thesis

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