Solid Agricultural Essay Sample

I. Statement of the Problem

a. ) What are the disadvantages and disadvantages of taking in Messrs. Bince and Antonio as co-owners of Solid Agricultural Company? What signifier of concern organisation do you propose? Why? B. ) What are the advantages and disadvantages of puting up a new company for Novaliches farm merely? What signifier of concern organisation do you propose?

II. Areas for Consideration

STRENGTHWEAKNESS
1. Koh’s command in agricultural development
2. Family owned company. Managed by Manuel who completed his grade in General Management at well-known Manila University 3. Debt free. the proprietor does non fall back to borrowed financess.
1. Adequate production of supply demands of the hog closer farms in Antipolo and Bulacan
2. Limited resources. make non fall back in utilizing borrowed financess.
3. Low Return on Investment ( 1. 4 % ) and Net Net income Margin ( 0. 62 % )
4. Long turning period of pigs.
5. Large sum of working capital particularly on cost of provenders

OPPORTUNITIESTHREATS
1. Sell to other little pig farm farms in two states where it now operates 2. Proposed Novaliches farm may house the disposal operations of Meycauayan farm. increasing the production of the latter 3. Feed factory in Novaliches can bring forth the provenders for

the expanded demands of the Antipolo and Meycauayan farms
4. Increased population in Metro Manila and strong buying power additions demand.
5. Novaliches is near to major markets of manilla
6. Expansion in expected to increase grosss and lessening cost of gross revenues
1. High cost of provenders and monetary value control on porc
2. Novaliches farm do non vouch success

III. Alternative Courses of Action
1. To accept the offer and take Messrs. Bince and Antonio as co-owners of Solid Agricultural Company.
2. To put up a new company for the Novaliches farm merely.
3. To see borrowing from the bank

IV. Evaluation of Alternative Courses of Action

ActionAdvantagesDisadvantages
To accept the offer and take Messrs. Bince and Antonio as co-owners of Solid Agricultural Company.
1. Antonio and Bince can supply expertness in agribusiness direction and selling. 2. The enlargement can be easy pursued without borrowing. 1. Significant accommodation on Koh household in footings of sharing of duty and net incomes. forces policies. and record and accounting process. 2. Decision-making may take a piece due to figure of directors. 3. Different manner of managing may hold inauspicious consequence the concern 4. Miscommunication

5. Net income distribution will be now divided with the new investor. 6. Losing control on household concern.

To put up a new company for the Novaliches farm merely.
1. Lower provender cost on the bing farms.
2. The new investors will merely take portion in the new farm at the same clip portion their expertness on agriculture. 4. The bing farm will stay a family-owned concern.
5. The enlargement can be easy pursued without borrowing. 1. Conflict of involvement may originate in the hereafter between the two concern. 2. Success non guaranteed
3. Manuel may split his focal point on running the concern.

To see borrowing from the bank alternatively of taking offers from Bince and Antonio
1. Novaliches farm will still be family-owned and operated company 2. New farm will be beginnings of new income1. Income on the new venture may non cover the involvement disbursal on the borrowed financess which may hold inauspicious consequence the net income. 2. Henry Koh may disapprove the adoption of financess.

3. Bince and Antonio may non anymore widen any aid at all since their offer was refused.

V. Recommendation

Greater demand in the market can be seen by the Solid. Hence. catching the chance in renting the Novaliches farm should be truly considered. As of the minute. current fund of Solid Agricultural is non sufficient to prolong another farm operation. Therefore. alternate class of action figure two is recommended which is to put up a new company for the Novaliches farm merely. Manuel has to take his opportunity in converting his male parent to accept the offer of Bince and Antonio but alternatively organize a separate company to keep the Antipolo and Bulacan farm still a family-owned concern. Manuel will be able to larn besides the managing manner and schemes of the two new spouses in agriculture which he may besides use in the two other farms. Manuel should besides pull off his clip sagely to prevent from miscommunication between his new spouse and his male parent as his clip will be divided with the new set up.