A strategic management paper for Cavite Farmers Feedmilling and Marketing Cooperative (CAFFMACO) / Vanesa Lou Consuegra.

Thesis (M.A)--Pamantasan ng Lungsod ng Maynila, 2019.

A strategic management paper presented to the Faculty of the PLM Business School -- Graduate Program in partial fulfillment of the requirements for the degree Master in Business Administration.

Cavite Farmers Feedmilling and Marketing Cooperative or (CAFFMACO) is a feedmill company located in Silang, Cavite that distributes its product in Cavite, Laguna, Batangas, Rizal and Quezon (CALABARZON).

This paper evaluated CAFFMACO current vision and mission and proposed a revised statement. Based on the external evaluation, the identified opportunities are the (1) Continuous growth of the swine and poultry industry (2) Low interest rates (3) Continuous Tax exempt status (4) Exponential popularity of e-commerce (5) Government support in terms of technology improvements and product development (6) New and advance feedmilling technology that are cost efficient. On the other hand, threats are follows (1) Rivalry among competitors (2) African swine Fever outbreak (3) Growing popularity of contract growing (4) Decreasing customers due to strict implementation of land use zoning (5) New market players from other countries as a result of ASEAN Economic Community (6) Effects of climate change. CAFFMACO has an above average response to these external factors with total EFE score of 3.26.

Internal evaluation resulted in a total IFE score of 2.92 which is also considered as an above average internal position. The major strengths identified are: (1) Competitive product pricing (2) Formalized volume discounts and provide other benefits to its consumers, such as patronage refunds. (3) is able to respond to changes, improvements and issues quickly, there are no red tapes and complicated management approval (4) Offers wide range of products (5) Operation is diversified to include poultry and hog raising, meat shop and lending operations. Likewise, the following weaknesses were identified and should be addressed: (1) Significant loans resulting to high borrowing cost. (2) High past due receivables and idle investment properties. (3) Production facility, including manpower, not maximized. (4) Inadequate marketing and promotion activities. (5) Limited product distribution channels. (6) No formal performance appraisal.

Using strategy formulation tools, the recommended strategy for CAFFMACO is market penetration to enable it to achieve its strategic and financial objectives to increase net income by an average of 25% in the next five years.

These objectives shall be achieved through the implementation of the following recommended business strategies: (1) Increase marketing and promotional activities; (2) Hiring of additional marketing staff for provinces of Batangas, Rizal, and Quezon; (3) Establish a branch/outlet in a Province of Batangas (4) Expand and improve technical assistance by engaging veterinary professionals to assist both swine and poultry customers.

After implementing the above mentioned strategies, the company sales are expected to increase by an average of 28 percent. Further interest on share capital is expected to increase above five percent beginning the third year of strategy implementation. Finally, borrowing shall be reduced to 20 million or 20 percent from its original amount and trade receivables including its significant past due receivables by 2/3 to 52.39 million.