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Nestle Case

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  • Pages: 7
  • Word count: 1565
  • Category: Nestle

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Ric Solis, one of the four partners in a prawn farming venture in Zamboanga City, was considering the latest request of Ben Torres, his cousin and manager of the venture, for an additional capital infusion of P30,000 to finance the next prawn crop and other requirements of Lucky Prawn Farms. This would be the third request of his cousin for additional financing since the start of the venture a year and a half ago, and Tic was beginning to be concerned about how long these requests for more capital infusion would continue before the venture be stabilized financially.

Statement of the Problem:

1. What specific course of action should be taken by the non-resident partners of the venture in order to facilitate the business more effective and efficient?

SWOT ANALYSIS

1.) Strengths
* For the challenges the business had experienced, Lucky prawn Farm still manage to harvest successful among the other competitors * There are reports that many businessmen have been succeeding into this kind of venture that is why partners in Lucky Prawn look positively in their industry. * For Ben Torres, it is a great experience to handle this business without any financial contribution. * There is always non-resident partner who are ready to give and raised money to sustain the venture.

2.) Weaknesses
* Ben Torres is an engineer, he only acquired knowledge of prawn culture from the farm nearby from the firm he has working before. He does not have adequate knowledge for this business. * Ben Torres purchased some items without proper analyzing and informing his partners about his decisions. * Ric Solis together with his two cousins also do not have enough knowledge to the business they entering. * The partners are away from the location of the business that results from lack of coordination and communication to the operation manager. * For the past 1 and a half year, the business is not yet stable. * There is lack of proper planning and strategies at the beginning of entering into this business.

3.) Opportunities
* The business only leased the two hectares property for the culture of prawn at a small very reasonable price. * Some of their competitors decided to go back from culturing of bangus because of failure in culturing of prawns * Since they have been learned the weakness they started to learned from the past, Ben Torres consult the problem to the visiting technician from UP.

4.) Threats
* The value of prawn has been lowered because of the drop in water gate prices. * The additional fund Ben Torres is asking for another capital infusion although the venture has not been stabilized.

SWOT MATRIX

EXTERNAL INTERNAL| OPPORTUNITIES * The business only leased the two hectares property for the culture of prawn at a small very reasonable price. * Some of their competitors decided to go back from culturing of bangus because of failure in culturing of prawnsSince they have been learned the weakness they started to learned from the past, Ben Torres consult the problem to the visiting technician from UP.| THREATS * The value of prawn has been lowered because of the drop in water gate prices. * The additional fund Ben Torres is asking for another capital infusion although the venture has not been stabilized.| STRENGHTS * For the challenges the business had experienced, Lucky prawn Farm still manage to harvest successful among the other competitors * There are reports that many businessmen have been succeeding into this kind of venture that is why partners in Lucky Prawn look positively in their industry. * For Ben Torres, it is a great experience to handle this business without any financial contribution. * There is always non-resident partner who are ready to give and raised money to sustain the venture.| The group must analyze first the different areas to be considered before entering the business.The group should have feasibility study to answer consequences that regards to this venture.

If they do have any study or knowledge in the industry they at least concentrate in doing so. | They may stop from culturing prawns and shift to another product like bangus.Have their own technician to ensure the good quality of the harvested prawns.| WEAKNESSES * Ben Torres is an engineer, he only acquired knowledge of prawn culture from the farm nearby from the firm he has working before. He does not have adequate knowledge for this business. * Ben Torres purchased some items without proper analyzing and informing his partners about his decisions. * Ric Solis together with his two cousins also do not have enough knowledge to the business they entering. * The partners are away from the location of the business that results from lack of coordination and communication to the operation manager. * For the past 1 and a half year, the business is not yet stable. *

There is lack of proper planning and strategies at the beginning of entering into this business.| Have another personnel or seek for an adviser who have a thorough knowledge in this business.There must be a written agreement (rules/ regulation/ policy) for the partners to be performed.The partners should have coordination to one another in order to have a mutual decision regarding the business. Everyone should know the ins and outs of the business. If one of the partners has something in mind that would benefit the business, he must first consult the remaining partners.The partners who are residing far from the location of the business must have a regular visit to ensure happening.| There must be a well written budget proposal and should be presented in front to the people involved in the business. There should be a staff in the business who has an adequate knowledge in reporting and recording the financial matters of the business. |

Areas of Consideration:

1.) Good understanding and thorough decisions or plans that maybe useful for the running of business. 2.) The budget and those recorded reports of financial aspects. 3.) Enough knowledge and information about the business of prawns. 4.) The good working environment among the partners.

5.) The essential of team work and coordination.

Alternative Courses of Actions:
Alternative 1

-The group must analyze first the different areas to be considered before entering the business.

-The group should have feasibility study to answer consequences that regards to this venture.

– If they do have any study or knowledge in the industry they at least concentrate in doing so.

Alternative 2

– Have another personnel or seek for an adviser who have a thorough knowledge in this business.

-There must be a written agreement (rules/ regulation/ policy) for the partners to be performed.

-The partners should have coordination to one another in order to have a mutual decision regarding the business. Everyone should know the ins and outs of the business. If one of the partners has something in mind that would benefit the business, he must first consult the remaining partners.

– The partners who are residing far from the location of the business must have a regular visit to ensure happening.

Alternative 3

-They may stop from culturing prawns and shift to another product like bangus.

-Have their own technician to ensure the good quality of the harvested prawns.

Alternative 4

-There must be a well written budget proposal and should be presented in front to the people involved in the business.

-There should be a staff in the business who has an adequate knowledge in reporting and recording the financial matters of the business.

Recommendations:

Alternative 1

The Lucky Prawn Farm should have done a thorough analysis, conceptual planning before entering the business. Feasibility study is one of the best way before putting up a business to know how the cons and pros of the nature of the industry. Feasibility study will help the businessmen to decide the appropriate business in a specific area.

Alternative 2

The partner of Lucky Prawn Farm should at least have a well written agreement among the partner what should be taken, what should be avoided, etc. An additional personnel is required to record and check all the financial statement. There must be a rotation of visit among those non-resident partners to supervise their business flow and for instance, he might as well report his observation to other non-resident partners. Also, there must be a mutual understanding on how they will run the business, a consultation to one another, coordination to which ever plan is implanted, and set an organizational goal for other to look up.

Alternative 3

If there is an instance that the business would not succeed, there are ways on how to improve their deficiency. They might consider Ben Torres ideas in another pond excavation or might as well hire or seek an advice from the person who knows how to handle the farm’s necessity or problem.

Alternative 4

They should have made a feasibility study to know how much money they should invest in to reach the pre-operating expenses of the business. They should need to conduct research from existing farm and assess how much preventive measure they must invest in especially with regards to risk in weather changes and diseases.

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