A case study on BAPAMIN enterprise : a sweet sorghum production and processing enterprise

Date

5-2016

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dinah Pura T. Depositario

Abstract

Sweet sorghum processing and production in the Philippines still at its infancy stage in the country. It was introduced in Ilocos Norte by Dr. Heraldo H. Layoen, Vice President of Mariano Marcos State University (MMSU) in 2005. The crop has been found to be highly efficient in producing fuel in other countries like Indonesia, Tanzania, and USA. Other products that can be produced from the sweet sorghum crop are molasses, animal feeds, fertilizer, flour, syrup, vinegar, juice, liquor, and sugar. BAPAMIN Enterprise, (BAPAMIN) is the sole enterprise which has engaged in sweet sorghum production and marketing of products made from the crop in the country. BAPAMIN was established in 2009 as the marketing arm of the BAPAMIN Farmer?s Cooperative (BFC), a group of farmers into planting and growing of sweet sorghum in Batac, Ilocos Norte. Both the enterprise and cooperative ids headed by Engr. Antonio Arcangel. BAPAMIN and his wife, Doris who are co-managing the company. It was observed that the enterprise was encountering difficulty in taking off even it has existing for seven years already. Thus, this research was conducted to draw up a strategic plan that would help make BIPAMIN Enterprise a viable social enterprise. The specific objectives of the research are to: 1) Present and discuss a noteworthy business issue faced by BAPAMIN Enterprise, which has company wide implications. 2) Evaluate the BAPAMIN sweet sorghum business model in terms of its various business functions. 3) Analyze the opportunities, threats and the critical strategic and operational issue(s) facing the venture 4) recommend a strategic plan and operational options for BAPAMIN Enterprise to become viable. Primary and secondary data were used to gather information. Interviews were conducted with Engr. And Ms. Arcangel as well as key informants from BAPAMIN Enterprise. Technical and socio-economic experts from MMSU and government agencies like the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD)-DOST DA-Bureau of Agricultural Research were also interviewed. Secondary data on sweet sorghum were gathered from various publications as well as internet sources. The collected data were analyzed using Business Model Canvas, Personal Entrepreneurial Competencies Self-Rating Analysis, Internal Factor Evaluation, Porters Five Forces Model, Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis, and the Qualitative Strategic Planning (QSPM) Matrix. It was learned through the Business Model Canvas that there were eight (8) participants in BAPAMIN?s business model: the Bureau of Agricultural Research (BAR) and the Department of Agriculture (DA) for funding the research and some equipment the Mariano Marcos State University (MMSU) and the Department of Science and Technology (DOST) for research and development Bapamin Farmers? Cooperative (BFC) for the production of raw materials and university, outlets, and institutions as the distribution channels. These participants were connected to one another and the efficiency of BAPAMIN depended on its linkages with the other components of the business model. Based on the interview with the entrepreneur, the vision for BAPAMIN is to be ?the pioneer in the propagation and processing of sweet sorghum in the country and the main advocate for developing high value products from sweet sorghum?. On the other hand, the mission of BAPAMIN is ?to campaign for mass planting of sweet sorghum as an alternative crop, address the goal of food sufficiency in the country and promote and educate the farmers on the best agricultural and cultural management practices for the adoption and propagation of sweet sorghum to consequently improve the financial condition of the farmers?. An examination of BAPAMIN?s vision and mission revealed that the mission statement only consisted of 4 out of 9 elements. Thus, improvements in both the mission and vision statements were suggested. BAPAMINS business functions were also presented in the study. The production and operations activities to the enterprise were not programmed and intermittent as they produced different products which were being introduced to the market and also displayed in trade exhibits. It was analyzed that then current equipment was still not enough to achieve the target production volume. In terms of raw materials supply, the enterprise bought grains from the BFC at Php 13/kg and the juice at Php 3/liter. Generally, the harvest were much higher during the dry season that the wet season. The enterprise as of the time of the study employed 4 full time and 210 seasonal workers because processing operations in the company took place only during harvest season. The marketing aspects of the enterprise were assessed to be relatively weak as the firm does not employ any marketing strategy. A closer look at the financial aspects of BAPAMIN revealed that the enterprise yielded an acceptable amount of profit but a part of it was plowed back for research and development of the sweet sorghum crop. Through the problem flowchart, it was seen that there were factors hindering BAPAMIN to becoming a true social enterprise. The owner was more focused on his advocacy of promoting sweet sorghum production and processing in the country to uplift the situation of farmers rather than focus on the profitability of the business itself. He overlooked the fact that BAPAMIN must first a profitable enterprise which is a must for any social enterprise. The EFE score derived for BAPAMIN was 2.53 which means the enterprise was only a little above the average in its effort to pursue strategies that capitalized on external opportunities and avoid threats on the other hand, the IFE score was 2.45 which implies that the enterprise is below average in terms of its overall internal strength. There was only one alternative formulated from the SWOT and this is the owner should exert more aggressive efforts in showcasing BAPAMIN as a model social enterprise. To achieve this, it must align its strategies to consumer preferences expose its customers to the various aspects of its business model through field and plant tours, and come up with a compelling product labeling and appealing packaging which would reflect the social enterprise dimension of the business.

Language

English

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2016 M17 L84

Document Type

Thesis

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