Sally's Balut Enterprises: A Case Study

Date

3-2011

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Carolyn V. Melgar

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Abstract

Balut is an incubated 16- to 18- day old duck embryo. It is known for its gross appearance but superb taste. It is usually a snack of the drinkers and even the common people during night time which blends well with the relatively cold weather because of its hot soup.

There are several balut producers in the Philippines. Although balut production is a source of income and employment especially in the poorer sector of the economy located the shorelines of the Laguna Lake, the industry is also faced with problems such as decreasing volume of production of duck eggs, increasing farmgate price of duck eggs and other factors that greatly affects the balut producers.

One of the balut producers in the Philippines is Sally’s Balut Industry. The business firm is located at #190 Quezon St. San Antonio, San Pedro, Laguna. They are currently producing fresh balut and penoy. Their customers are located in Sto. Tomas, Batangas, Bicutan, Taguig, Sta. Rosa, Laguna and Sucat, Muntinlupa. They are faced with problems such as unsold inventories, poor promotional strategy, difficulty in looking for new customers, dependence on agents, decreased production capacity, rejected eggs, additional personnel needed, less focus on walk-in customers and long average payment period.

This case study has a general objective to present and analyze the existing condition of Sally’s Balut Industry. Specifically, this study intends to: (1) present the historical background and profile of Sally’s Balut Industry; (2) analyze the relevant elements of the business environment of Sally’s Balut Industry; (3) evaluate the firm in terms of the four business functional areas – Marketing, Production, Personnel and Finance; (4) identify and analyze the business issues and problems faced by Sally’s Balut Industry; (5) generate and evaluate alternative solutions to the identified problems;(6) identify the best solution using appropriate criteria; and (7) design an implementation plan for the chosen solution.

The primary data were gathered through interviews. The researcher interviewed the assistant manager and finance officer of the firm Mrs. Rosalie Ramirez, two other personnel, JR Villanueva and Bermun Prias and Professor Veneranda Magpantay, a Professor in College of Agriculture, Animal Science Cluster, for some technical aspects. Secondary data were gathered through published undergraduate thesis and special problem in the CEM Library. The World Wide Web is also one of the sources of these data. The research instruments used were SWOT Matrix and Financial Analysis. Cost and Benefit Analysis and decision criteria were used to evaluate the alternative courses of action.

The macroenvironmental analysis was determined to be able to identify the opportunities and threats for the firm. The opportunities include increasing concern of several organizations for duck production, Filipinos are balut eaters, people are becoming health- conscious and there are no major players in the industry. The threats for the firm consist of lack of government support, Filipinos still prefer chicken rather than duck eggs, increasing prices of fuel and balut is a seasonal product.

The strengths and weaknesses of the firm were also identified. The strengths of the firm include good relationship with customers, high-quality balut and high production capacity. The weaknesses include lack of promotional strategies, dependence on agents and unsold inventories.

After data gathering and analysis, a problem was identified that greatly affected the firm. The statement of the problem is, what strategy should Sally’s Balut Industry employ in order to avoid unnecessary costs brought about by unsold inventories to pursue expansion?

Through the SWOT Matrix, the alternative courses of action were generated. After evaluation of strategies through cost and benefit analysis and decision criteria, the researcher recommends that the firm should implement a policy for the agents in order to avoid unnecessary costs brought about by unsold balut to pursue expansion.

By the implementation of policy for the agents, the firm will be able to avoid unsold inventories by having higher volume of orders from their agents. These agents should be able to comply with the firm’s policy. The policy will make the firm cater the demands of those agents that will be able to place orders that reaches the quota set by the owner of the firm, which is 3,000 balut. For those agents who cannot reach the quota of 3,000 pieces of balut eggs, the firm will discontinue serving them.

Language

English

LC Subject

Egg products industry, Business enterprises

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2011 M17 P35

Notes

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Document Type

Thesis

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