Case Study Analysis of Sanctuario Nature Farms Corporation in Indang, Cavite

Date

12-2024

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jennica Amielle M. Mora

Committee Member

Juan Paulino S. Trespalacio Junior, Eliza C. Aquino, Dia Noelle F. Velasco

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.

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For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

Organic farming, combined with agritourism and educational initiatives, has grown significantly due to the increasing shift of farmers from conventional to organic practices. This movement is driven by the benefits of organic farming, diverse cultivation methods, and the rising demand for fresh, healthy produce. Many people are also drawn to learning about crop and livestock management, the lifecycle of plants, and the appreciation of flora and fauna. These trends have led to the establishment of numerous agritourism sites in the Philippines, increasing from 10 registered farms to hundreds by 2024. Government institutions, such as the Department of Agriculture, Department of Science and Technology, and Department of Tourism, have played a significant role in promoting organic farming and agritourism in the Philippines through various initiatives and programs. Key measures include the enactment of the Organic Agriculture Act of 2010 (RA No. 10068), the establishment of the Philippine National Standard for Organic Agriculture (PNS OA), the introduction of the Farm Tourism Development Act of 2016 (RA No. 10816), and the development of credit and financing programs tailored to support these sectors.

The continuous efforts related to organic farming and agritourism have effectively encouraged and inspired many farms, including Sanctuario Nature Farms Corporation in Indang, Cavite, which integrates organic production, farm tourism, and training services. It serves health-conscious individuals, students, and farm enthusiasts in Cavite and nearby areas through partnerships, workshops, tours, and organic products. Led by Ms. Cristina Elequin, the farm emphasizes safety, regulatory compliance, and staff development, recruiting primarily through internships. Future plans include boosting marketing, expanding production, improving infrastructure, and securing Department of Tourism accreditation to strengthen its position in agritourism and organic farming advocacy. This study aimed to help the farm to identify its challenges and recommend solutions for sustainability and growth by evaluating its current business profile, business environment, and management functions. Specifically, the research aimed to (1) present the profile of the farm, (2) determine the present business environment for Sanctuario Nature Farms Corporation, (3) describe the status of the four business management functions (marketing, production/operations, finance, and human resources) of the farm, (4) analyze the issues of Sanctuario Nature Farms Corporation in terms of the external and internal environments, (5) evaluate the alternative solutions to the identified issues and challenges, and (6) formulate an implementation plan for the recommended solution to optimize the farm's business performance.

The study used descriptive analysis to assess the status and performance of Sanctuario Nature Farms Corporation. It analyzed primary and secondary data through environmental scanning, internal analysis, and integrated assessments. Environmental scanning evaluated the macroenvironment with PESTLE Analysis and the microenvironment using Porter’s Five Forces. Internal analysis examined the farm's profile, vision and mission, and its four key functions: marketing, finance, operations, and human resources. The integrated assessment applied tools like the Zmijewski Score Model, Problem Analysis, IFE Matrix, and EFE Matrix to provide a comprehensive evaluation of the farm's performance. Alternative solutions were developed and assessed using the SWOT Matrix, Internal-External Matrix, and Quantitative Strategic Planning Matrix (QSPM) to create an implementation plan. The Zmijewski Score Model, based on inputs from the bookkeeper and farm manager, identified the farm's sustainability or potential risk of bankruptcy.

Key findings from the case study analysis revealed several challenges and opportunities for Sanctuario Nature Farms Corporation. The farm’s vision and mission provide direction but lack strong motivational and aspirational elements to fully inspire its customers. Marketing strategies faced gaps, including a limited promotional effort, undefined target markets, and reliance on word-of-mouth referrals, which hinder broader reach and customer engagement. Financially, the farm depended heavily on donations, struggles with liquidity and profitability, and faces risks from limited revenue streams. Operationally, its small-scale production, technology limitations, and labor-intensive processes restricted scalability and efficiency. Human resource challenges, including over-reliance on a few individuals, low wages, and limited career growth, affected employee retention and performance.

To address these challenges, three strategic alternatives were proposed: (1) partnering with wellness and eco-lifestyle organizations, (2) reinstating organic poultry prodution, and (3) launch a farm membership program with exclusive benefits. Sanctuario Nature Farms Corporation, located in Indang, Cavite, embodies the principles of sustainable organic farming, education, and agritourism. While the farm capitalizes on trends such as rising health awareness and advancements in agriculture, it faces significant internal and external challenges. These include financial dependency on donations, limited marketing reach, scalability issues, and a reliance on a small core of personnel. Inflation, competition, and substitute threats further amplify these challenges, underscoring the need for a more resilient and strategic approach.

To address these challenges, three strategic alternatives were proposed: (1) partnering with wellness and eco-lifestyle organizations, (2) reinstating organic poultry production, and (3) launching a farm membership program with exclusive benefits. Each alternative offers potential benefits. Reinstating organic poultry production could diversify revenue streams and appeal to health-conscious consumers. A membership program could foster a loyal customer base and generate a steady income. However, among these options, the most attractive and immediately applicable strategy for Sanctuario Nature Farms Corporation is partnering with wellness and eco-lifestyle organizations. This partnership strategy addresses the farm’s core challenge of achieving sustainable income while leveraging its strengths, such as its organic produce and unique offerings like roselle hibiscus calyx tea. Collaborations with like-minded organizations would expand market reach and attract targeted audiences. By pursuing this strategy, the farm can develop diversified and sustainable income streams, reducing its reliance on donations and increasing financial stability.

Based on its current resources, Sanctuario Nature Farms Corporation has demonstrated the potential to succeed and flourish in the expanding organic farming and agritourism sector. By improving its vision and mission, strengthening its marketing strategies, optimizing financial management, and addressing operations and human resource concerns, the farm can achieve sustainable income.

Language

English

LC Subject

Organic farming, Farm corporations

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2024 M17 L36

Notes

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Document Type

Thesis

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