A Technopreneurial Case Study on Mapecon Green Charcoal Philippines, Incorporated: Focus on its Green Charcoal and Activated Carbon Technologies

Date

3-2011

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dinah Pura T. Depositario

Committee Member

Nimfa D. Montes, Mar B. Cruz, Nanette A. Aquino, Reynaldo L. Tan

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Abstract

Green charcoal is a compact solid fuel manufactured from cellulosic biomass matter such as grass, leaves, twigs, seaweeds, garbage, sawdust and other plant materials. Compared to ordinary charcoal, Green Charcoal utilizes the conversion of waste materials from green fields and forests; thus, burning of agricultural waste, illegal logging and other unlawful environmental practices will be reduced. On the other hand, activated carbon is an amorphous form of carbon subjected to thermal treatment which can be used for wastewater treatment, air purification and water purification.

The main objective of this study is to demonstrate how a technopreneurial event can occur and to describe the business issue that the technopreneurial venture is facing. Specifically it aims to: (1) present the technology utilized in the production and processing of Green Charcoal and activated carbon and describe how it was conceptualized, developed and commercialized; (2) describe the venture’s business model and its start-up phase; (3) describe the barriers encountered and how these were overcome as well as the current and potential risks facing the production and processing of Green Charcoal and activated carbon technologies; (4) assess the business strategies, product, process and practice innovations and the viability of the techno-venture; (5) assess the distinct traits of the technopreneur, describe how these are manifested in innovations, and identify the key success factors of the venture and (6) provide recommendation and devise strategy implementation in addressing the identified problems and prospects of the company.

The study utilized the descriptive and exploratory research designs. Both primary and secondary data were used in data collection. Interviews with key persons in the firm like the owner as well as plant manager were conducted to gather data on the status of the firm. Situational problem analysis and potential problem analysis were employed to analyze the issues besetting the green charcoal and activated carbon businesses. Secondary data, on the other hand, such as financial statements of the company for the past years were obtained from the Securities and Exchange Commission. Data such as the activated carbon industry and the players were gathered from journal publications, Department of Trade and Industry (DTI) website and other sources.

The strategy formulation analytical framework which involves input, matching and decision stage was used to further analyze the external and internal environment of the firm. For the input stage, External Factor Evaluation (EFE) and Internal Factor Evaluation (IFE) were used as a tool for analysis; for matching stage, the Strength- Weakness-Opportunity-Threat (SWOT) Analysis was made; and for the decision stage, the Quantitative Strategic Planning (QSPM) was devised to have a basis for recommendation.

The discovery of the green charcoal took place way back in 1982. Originally, it was a part of the two divisions under MAPECON Philippines, Incorporated. Upon seeing many opportunities for the technology, Mr. Catan, the owner of MAPECON, decided to establish a firm that would allow large production volume of green charcoal through seeking private partnership. Since then, MAPECON Green Charcoal Philippines, Incorporated has been instituted wherein its name coined from the green charcoal product. Unfortunately, after having a drastic decline in sales on 2010, the owner decided to phase out the green charcoal in product line. After pulling out this product, the technopreneur decided to use the green charcoal as a replacement for diesel and bunker fuel in producing activated carbon which eventually became the focus of MGCPI business.

The study found that MGCPI faces a lot of issues in relation to the two technologies. The main cause of the phasing out of the green charcoal business is the lukewarm response for the product by the households and its price is higher compared to traditional charcoal. On the other hand, the identified current and potential problems in relation to activated carbon were possible decrease in sales and inability to meet the demand (given that the firm has problem in its production capacity and on its distribution network). To address the identified issues faced by the activated carbon business, MGCPI must formulate and implement a strategic marketing plan in order to tap the opportunities at hand that would lead to the growth of the company.

The strengths of MGCPI that were identified among others were: (1) it is the only Activated Carbon plant in Luzon, (2) environmental-friendly products, (3) proximity of raw materials, (4) e-marketing of activated carbon and (5) innovative thinking of technopreneur. On the other hand, the weaknesses of MGCPI are the following: (1) technopreneur’s lack of risk-taking characteristic, (2) limited supply of raw materials, (3) limited equipment used in production of Activated Carbon, (4) limited distribution outlet and (5) negative and unstable trend in profitability ratio.

The opportunities for MGCPI that identified were: (1) activated carbon is being used for medicinal purposes, (2) untapped local market, (3) increasing population of preferring environmental-friendly products, and (4) activated carbon is used in cosmetology. The threats that might affect the firm were: (1) threatened supply of raw materials due to occurrence of typhoons and climate change, (2) new entrants in the industry, (3) land conversion, and (4) underdeveloped farm-to-market road.

After assessing the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, four alternatives were devised that could help the company overcome the current and potential issues. These were: (1) market development, (2) concentric diversification, (3) product development and (4) market development.

After thoroughly analyzing the alternatives qualitatively through QSPM, it was recommended that market development should be adopted. This strategy is expected to increase the market share of MGCPI in the activated carbon industry through introducing the activated carbon into new geographical areas in the Philippines other than Luzon such as the Visayas and Mindanao. They would have to search for other possible buyers for activated carbon aside from gold processing firms and water purification companies. MGCPI could also consider penetrating the food processing, pharmaceutical, air purification and chemical industries. The implication of this strategy is that MGCPI’s production capacity by acquiring rotating kiln. With regards to personnel, the firm must hire a resident bookkeeper and must provide safety guidelines for the employees. It has also recommended that green charcoal must be re-commercialized by having a private partner. Exploring the possibility of having business partners with wide distribution network would help in extensively marketing the green charcoal all over the Philippines.

Language

English

LC Subject

Charcoal, Technological innovations

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2011 M17 B37

Notes

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Document Type

Thesis

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