A case study on a horse feed importing company

Date

4-2013

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jeanette Angeline B. Madamba

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

Horse feed industry in the Philippines is considered as a small industry compared to the hog, poultry and aqua feeds industry. About 99% of the feeds produced in the country are the hog, poultry and aqua feeds while the remaining 1% is the feeds produced for fighting cock, pigeon, cattle, horse, and pet animals which are aggregated as specialty feeds. Markets in horse feed industry includes stables, breeding farms and agricultural farms. Consisting of primarily 19 competing firms (15 manufacturer and 5 importers), the industry is considered as intensely competitive. One of competing firmsis Equinux Company Limited (importer) located in San Pedro, Laguna, Considered as a young business, the operation was bombarded with some pressing issues. The study generally presented the status and assessed the overall performance of the business in relation to its importing and distributing feeds (Comancor Corporation) operation. Specifically, the study aimed to: 1) present the business profiles of Equinux Company Limited (importer) and Comancor Corporation (distributor) 2) assess the business in the context of its operation, marketing, finance and personnel aspects 3) analyze the relevant elements in the business environment of the firm 4) generate and evaluate alternative solutions to the identified problem 5) recommend the best solution using appropriate criteria and 6) design an implementation plan for the chosen solution. The study used the descriptive research design. Primary and secondary data were utilized for the completion of this case study. Primary data were obtained through personal interviews, survey, farms and horse stables visits and observations. Company records were obtained and were primarily used in the analysis of this research. Secondary data were sourced from undergraduate special problems of University of the Philippines Los Baños, government agencies, published books, municipal records, other references from internet sources.Porter‟s Five forces Model analysis was conducted to determine the logic in the industry and revealed the opportunities and threats in the industry. Supply chain analysis (operation), trend analysis, vertical analysis, and financial ratio analysis (finance) were utilized to reveal the strengths and weaknesses of the company. Results of the study showed that the strengths of the company include:1) strategic alliance with San Miguel Corporation 2) good quality of horse feeds 3) good network with the suppliers 4) complete line of horse feed products 5) proximity of the warehouse and shops to the market and 6) part of Asian Tammidel group of companies. Weaknesses on the other hand includes: 1) overlapping of tasks 2) potential for long credit terms for new accounts 3) high operating costs and expenses. The identified opportunities in the industry were: 1) increasing demand for other types of feed (especially aqua feeds) which could be a possible growth area for the company 2) increasing numbers of horse farms 3) untapped outlets in Naic, Cavite and Malvar, Batangas racetrack and 4) untapped agricultural horse market segment. Threats identified were: 1) intense competition and 2) presence of substitutes. The case problem of the study was: ?What growth strategy should the company adopt to take advantage of the opportunities in the business environment and subsequently address the losses incurred by the company?? Considered as a young business and follower in the industry, how the company should grow to make it profitable would be the primary issue posed by the study.Accordingly, through SWOT analysis, three alternatives/strategies were formulated, namely: 1) establishing shops at Malvar racetrack and increase promotional activity such as having a company race cup (market penetration) 2) catering the agricultural horse segment in the horse market(market development) and (3) diversifying into other line of feed products (concentric diversification).The different alternatives were evaluated using the following criteria: 1) profitability 2) ease of implementation 3) perceived effectiveness and 4) degree of risk. After evaluating with the use of Preference Rating Matrix, the recommended alternative is to establish shop at Malvar racetrack as a form of market penetration. In support of the above, marketing plan and implementation plan were drafted. The chosen strategy envisioned positive impact on the business function by increasing the profitability of the company, expansion of market share and effective distribution of feed products.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

Thesis

Document Type

Thesis

This document is currently not available here.

Share

COinS