Elaine Mae Casinillo

1.1 1.2 CHAPTER 1 INTRODUCTION Brief Industry Review An agrochemical is any substance used to help manage an agricultural ecosystem, or the community of organisms in a farming area. Agrochemicals include: fertilizers, liming and acidifying agents, soil conditioners, pesticides, and chemicals used in animal husbandry, such as antibiotics and hormones. The use of agrochemicals has been critical to the raising crops for food. However, some of these chemicals cause substantial environmental and ecological damage, greatly reducing their benefits. http://www.encyclopedia.com/plants-and-animals/agriculture-andhorticulture/agriculture-general/agrochemical Fertilizers are used in the agriculture industry to improve the yield (the amount of crop) farmers receive from acreage of land. Fertilizer is a key ingredient in feeding a growing global population, which is expected to surpass 9.5 billion people by 2050. Half of all food grown around the world today, for both people and animals, is made possible through the use of fertilizer. As demand continues to grow, farmers around the world will continue to rely on fertilizer to increase production efficiency to produce more food while optimizing inputs. Fertilizers play an essential role in replenishing nutrients in the soil that are used by plants each growing season. Three primary nutrients are necessary for plant growth: nitrogen, phosphorus, and potassium. All must be present in soil in the right amount to grow healthy crops. http://marketrealist.com/2013/10/fertilizer-industry-overview-must-knowfertilizer-types/ Company Background Farmtech Agriland Corporation is engaged in the distribution, wholesale and trading of various agriculture inputs such as Fertilizers, Soil Ameliorants, Micronutrients, Plant Growth Regulators, Packaging Materials and among others. In 2009 Mr and Mrs Subang bought the Hey and Tindale company and later on they legally change the company name into Farmtech Agriland Corporation. FARMTECH AGRILAND CORPORATION is engaged in the distribution, wholesale and trading of various agricultural inputs such as Fertilizrs, Soil Ameliorants, Micronutrients, Plant Growth Regulators, and Packaging Materials and among others. Now, Farmtech expanded its business and products lines not only in Agriculture but also with other commodities (flour, milk, sugar, and rice), petroleum (jatropha, palm oil), minerals (copper, chromite, nickel). Farmtech was able to establish tie-ups with manufacturers, indentors and importers here and abroad to be the marketing arm and distributor of their products in the field of Agriculture, Food and Industrial. With the turn of globalization and b2b marketing, we have seen potential expansion in the international market and started as facilitator or intermediary for legitimate seller and buyers of petroleum based products, fertilizers, minerals and other commodities. It aims to be the preferred supplier not only by the customers and also the preferred distributor or partner of companies whether sellers, buyers and investors around the globe who are targeting to do business in Mindanao as well. Eventually, Farmtech will also be known in the international trade as a reliable facilitator for both sellers and buyers. https://ph-.m.fm.alibaba.com/company_profile.html?spm=a-VcBme 1.3 General Performance Review Farmtech Agriland Corporation Joins Davao Trade Expo 2013 DATE 2013 in Davao City is the major gathering of all industry especially in the Field of Agriculture were us Farmtech Agriland Corporation Exhibit all the different kind of Fertilizer and Pesticide for proper kind of Crop. Farmtech Agriland is a Member of CIDAMi (Cacao Industry Development Association of Mindanao, Inc.) http://farmtechagrilandcorp.blogspot.com/2013/10/farmtech-agrilandcorporation-joins.html 1.4 Statement of the Problem How to improve product distribution performance of Farmtech Agriland Corporation? 1.5 Objective of the Study To device marketing strategies that will help the Farmtech Agriland Corporation in terms of:  Effective timely travel due to different region and routes of distribution.  1.6 To attain the safeness of hazardous products when throughout the distribution.  To prevent the risk and acquired immediate action occur under hazardous conditions. Methodology The following tools are used for our marketing plan: • SWOT Analysis - The purpose of SWOT is to identify the Strengths, Weaknesses, Opportunities, and Threats of the company. • PESTE - The purpose of a PESTE analysis is to identify all of the various external political, economic, social, technological, and environmental factors that might affect a business. • CPM (Competitive Matrix Profile) - The matrix identifies a firm’s key competitors and compares them using industry’s critical success factors. • Internal Factor Evaluation (IFE) Matrix - a strategic formulation tool that summarizes and evaluates the major strengths and weaknesses in the functional areas of a business and generates a basis for identifying and evaluating relationships among those areas. • External Factor Evaluation (EFE) Matrix - is a strategic formulation tool that summarizes and evaluates the essential factors in the firm’s external environments which offers a positive prospect or poses a risk to its success. • QSPM (Quantitative Strategic Planning Matrix) - A strategic tool which is use to evaluate alternative set of strategies. The QSPM incorporate earlier stage details in an organize way to calculate the score of multiple strategies in order to find the best matched strategies for the organization. http://www.mba-tutorials.com/strategy/230-quantitative-strategic-planning-matrixqspm.html 1.7 Limitations of the Study This study is limited only to the data the group had obtained through an interview with the company’s Accountant Mr. Lawrence Layson. The group has gathered sufficient information regarding the operations of the company, the main problems faced by the company; there was also information that weren’t given to us due to company’s confidentiality. 1.8 Analytical Framework . CHAPTER 2 ANALYSIS OF THE INTERNAL ENVIRONMENT 2.1 Human Resource The HR department of the company plays a major responsibility in selection and recruitment of employees. The HR in like manner in charge in enhancing employees’ capabilities through preparing an advancement programs that would help them in boosting employee adequacy and forcefulness. All capability of procuring such employee should be based on the organization's VMG towards their employees. 2.2 Operations The Operational Supervisor is the backbone of the organization, responsible in monitoring the task and activities in logistics department, field sales and accounting department. In addition, operational supervisor need to formulate effective strategies that enhance the financial welfare of the organization also develop effective measures to motivate employees and in the office management. If there is any problem that these departments can’t handle, they can approach directly to the operational supervisor. 2.3 Finance The Accounting Supervisor secures the Financial Operations by monitoring and approving financial processing, reporting and auditing, supervising staff. And also it is responsible in maintaining the Accounts Payable and Credits and Collection departments. 2.4 Marketing 2.4.1 Product TOP SIX FERTILIZERS: 1. UREA- it is also known as forty six zero zero (46-0-0), it is a simple or straight fertilizer that supplies the major essential element nitrogen in ammonic form (NH4+). http://www.cropsreview.com/urea-fertilizer.html 2. AMMOSUL- ammonium sulphate or sulphate of ammonia, sometimes it is called as ammosul or further abbreviation as AS or AMS, it is a chemical compound that is primarily used as a nitrogen fertilizer with other miner uses. http://www.cropsreview.com/ammonium-sulfate.html 3. COMPLETE- a fertilizer that contains the three chief plant nutrients nitrogen, phosphoric acid, and potash. https://www.merriamwebster.com/dictionary/complete%20fertilizer 4. AMMOPHOS- is a highly concentrated fertilizer comprising Nitrogen and Phosphor, mainly in a water-soluble composition and it is assimilated by plants very well. http://www.himagro.com/slng/prod_2.html 5. MOP (Muriate of Potash)- is the most common potassium source used in agriculture, accounting for about 95% of all potash fertilizers used worldwide. http://www.potashinfo.com/potassium/potassiuminfertilisers/potassiuminfertilisers.html 6. DAP (Di-Ammonium Phosphate)- the high phosphorous content makes it a true high analysis fertilizer. DAP blends used on a range of crops in broad-acre farming, cereals, sugar cane, sawing pastures, dairy pastures, fodder crops, and also in horticultural crops; for example vegetables, and tree crops. http://www.impactfertilisers.com.au/products/phosphorus/dap/  Other available products Chemicals, Plant Regulators, Micronutrients  Onecide 15ec (herbicide)  Glyphos8 (herbicide)  Mintech ( seed germinator, growth enhancer, disinfectant)  Karrat Liquid Fertilizer (growth enhancer, organic inoculant for rapid composting) Packaging Materials and Production Supplies  Rubber band (color:green)  Seed Bags (6x10, 8x12), Plastic sleeves  Backpack Sprayer (16 ltr and 18 ltr)  Chlorine 2.4.2 Price Best of Fertilizers Price as of July 2017 NAME UREA PRICE (50KGS) Php746.00 AMMOSUL COMPLETE AMMOPHUS MOP DAP Php433.00 Php895.00 Php844.00 Php908.00 Php1,348.00 2.4.3 Place - Farmtech Agriland Corporation is located at Opal St., RGA Village, Obrero, Davao City,- Promotion - Since Farmtech Agriland Corporation focused in credit terms payment, they don’t have any promotional strategies aside from the zero percent interest. For the advertisement most of the fertilizer and chemical products business they don’t focus any heavy advertisement except the flyers. Internal Factors Matrix Strength 1. Wide Range of product 2. Good Quality of Product 3. Customer Loyalty 4. Excellent Customer Service 5. Innovative Products 6. Connections 7. Well-trained and customeroriented employees 8. Installment without Interest 9. Easy to order products 10. Financial Capacity Identified Strength and Weakness Strength 1. Wide Range of Products 2. Good Quality of Products 3. Customer Loyalty 4. Excellent Customer Service 5. Innovative Products 6. Connections 7. Well-Trained and Customer-Oriented Employees 8. Installment without Interest 9. Easy to order products 10. Financial Capacity Weakness 1. Lack of Outreach Activities 2. Low product awareness Weakness 1. Lack of Outreach Activities 2. Low Product Awareness 3. Lack of Manpower 4. Availability of Product 5. Utilizing of Personnel 6. Delayed Distribution 7. Monthly Payment for space rent 8. Insufficient Distribution Truck 9. No warehouse 10. Increase company expenditure Weight Rating Score - 4 4 4 4 - - 4 4 3 - 0.08 4 0.32 0.06 0.05 4 4 0.24 0.20 0.04 2 0.08 0.04 2 0.08 3. Lack of Manpower 0.06 4. Availability of Products 0.05 5. Utilizing of Personnel 0.03 6. Delayed Distribution 0.07 7. Monthly payment for 0.02 space rent 8. Insufficient Distribution 0.07 Truck 9. No Warehouse 0.05 10. Increase company 0.02 expenditures Sub-total 1.0 IFE Score 1 1 2 1 2 - 1 0.07 2 2 0.10 0.04 INTERPRETATION: The organization has strong internal position. 2.81 CHAPTER 3 ANALYSIS OF THE EXTERNAL ENVIRONMENT 3.1 Political Factors Advantage Disadvantage The Department of Agriculture (DA) shares the sentiment of the business community that the declaration of martial law in the entire Mindanao would bring more boon than bane to the economy. The agriculture sector would not be affected by martial law and, in fact, it could even benefit from such heightened security measure. http://www.businessmirror.com.ph/martial-law-seen-boosting-farm-output-inmindanao/ 3.2 Economic Factors Advantage Disadvantage Mindanao’s lead socio-economic development coordinating agency is planning around an aggressive growth assumption of 9% for gross regional domestic product (GRDP) heading towards 2030. http://www.bworldonline.com/content.php?section=Economy&title=mindanaos-9%growth-target-to-depend-on-backing-for-agri&id=- Socio-Cultural Factors Advantage Documentation and Assessment Disadvantage of Socio-Cultural aspect of organic cultural that will triggered the gender relations, labor dynamic and market system, perceived attitudes in the social cost and benefits of organic agriculture to the farmers were determined. http://organic.da.gov.ph/index.php/-/others/socio-culturalaspects-of-organic-agriculture 3.4 Technological Factors Advantage Disadvantage A new technology-based project aims enabling Philippine smallholder farmers to undertake cost-efficient, high-yielding and resilient agriculture amidst climate change. http://www.pna.gov.ph/articles/987864 3.5 Environmental Factors Advantage Disadvantage Globally, an estimated 25 million agricultural workers suffer from pesticide poisoning every year. Dr. Romeo Quijano presents the adverse impacts on health of toxic pesticides used by agricultural plantations in the Philippines. http://bulatlat.com/main/2015/10/29/plantation-workers-in-mindanao-poisonedimpoverished/ External Factors Opportunities 1. Referral or Word-of-mouth 2. Industry is growing 3. Attract prospect customer 4. Increase Investments 5. New Technology Advances 6. Agricultural Stability 7. Company Recognition 8. Trade marking 9. Export Potential 10. Company Expansion Threats Annual Government Taxes Increase numbers of competitors End Contract of Infrastructure Shifting of Loyal Customer Traffic Congestion Improper Handling of Product Power Interruption during operation period 8. Unpredictable Weather Condition 9. Revolutionary Tax 10. Mechanical Problem during Delivery-. Identified Opportunity and Weight Rating Score Threat Opportunity 1. Referral or Word-of-mouth-. Industry is growing-. Attract prospect customer-. Increase Investments-. New Technology- Advances 6. Agricultural Stability-. Company Recognition-. Trade marking-. Export Potential-. Company Expansion- Threats 1. Annual Government- Taxes 2. Increase numbers of- Competitors 3. End contract of- Infrastructure 4. Shifting of loyal customer-. Traffic congestion-. Improper Handling of- product 7. Power Interruption during- operation period 8. Unpredictable Weather- Condition 9. Revolutionary Tax-. Mechanical Problem- during delivery Sub-total 1.0 EFE Score 3.04 INTERPRETATION: The organization’s ability to react to its external environment is deemed very satisfactory. CHAPTER 4 ORGANIZATIONAL OBJECTIVES 4.1 VMG Vision To be known as the leading importer & distributor of agricultural inputs & implements -- Farmtech Corporation is aiming to pursue future plan of the company and that is by exporting a new fertilizer to other country’s made by Philippines. Mission We aim to be identified as the provider of innovative inputs & implements for the agricultural sector -- Aiming to be more recognized company in fertilizer industry as a good distributor and provider in Davao City. Core Values Integrity We are committed to doing what is right in our dealings with everyone Honesty In all our dealings, we are honest and will continue to be open especially to our customers. Accountability We take responsibility for our actions, regardless of outcome, in order to honor obligations and expectations set by clients, peers, and ourselves Fair Treatment & Good Relationship We extend fair treatment to all and are committed in forging good relationships Quality Customer Service We treat customers with the utmost respect and we commit to extending excellent service to them before, during and after sales dealings 4.2 Stakeholders Analysis Stakeholder Customer Expectations - Employees - Service Opportunities Received good quality products Deliver the products on time - Well-trained employees Working in harmonious environment - - - Supplier - - Increase strong relationship with suppliers Regularly supply high quality products - - Provide good customer service Fast transaction of order system Develop through trainings, seminars Provide employees benefits and just compensation Performance effectiveness Continue to provide wide variety of products Implement good negotiation by building trust and mutual benefits to satisfy suppliers offering services. CHAPTER 5 STRATEGY PROPOSALS 5.1 Strategic Issues and Options 5.1.1 SWOT Analysis STRENGTH OPPORTUNITY 1. Referral or Wordof-mouth 2. Industry is growing 3. Attract prospect customer 4. Increase Investments 5. New Technology Advances 6. Agricultural Stability 7. Company Recognition 8. Trade marking 9. Export Potential 10. Company Expansion THREAT 1. Annual Government Taxes 2. Increase numbers of competitors 1. Wide Range of product 2. Good Quality of Product 3. Customer Loyalty 4. Excellent Customer Service 5. Innovative Products 6. Connections 7. Well-trained and customer-oriented employees 8. Installment without Interest 9. Easy to order products Financial Capacity SxO SxT WEAKNESS 1. Lack of Outreach Activities 2. Low Product Awareness 3. Lack of Manpower 4. Availability of Product 5. Utilizing of Personnel 6. Delayed Distribution 7. Monthly Payment for space rent 8. Insufficient Distribution Truck 9. No warehouse 10. Increase company expenditure WxO WxT 3. End Contract of Infrastructure 4. Shifting of Loyal Customer 5. Traffic Congestion 6. Improper Handling of Product 7. Power Interruption during operation period 8. Unpredictable Weather Condition 9. Revolutionary Tax 10. Mechanical Problem during Delivery SWOT Matrix 5.1.2 Internal/External (IE) Matrix 5.1.3 QSPM 5.2 Strategic Proposals CHAPTER 6 IMPLEMENTING PROGRAMS 6.1 Implementing Programs (Functional areas, activities, major emphasis programs, objective verifiable indicators, source of verification, target date, point/focal person) Functional Areas Activities 6.2 Improve Operational Efficiency Major Emphasis Programs Objective Verifiable Indicators Date Point Pers on 1. Provide employees with secure, consistent access to information. One advantage of being an SMB is the ability to react more quickly than larger competitors. But if your company network is frequently down, sluggish, or unsecured, that competitive advantage is eroded. A secure, reliable, self-defending network based on intelligent routers and switches provides your business with maximum agility by providing reliable, secure access to business intelligence. What's more, a secure, reliable network infrastructure provides the necessary foundation for a number of efficiency-enhancing technologies and solutions, such as IP communications. 2. Deliver anytime, anywhere access to mobile employees. SMB employees are typically more mobile than those in larger enterprises, says Jan Dawson, research director of Ovum Research. "Ubiquitous access to people and information is particularly important for SMBs," in order to be productive while on the go, he adds. Technologies enabling ubiquitous access include virtual private networks (VPNs), which securely connect remote workers to the company network, and pervasive wireless networks, which enable workers to stay connected to the network while roaming about an office building or campus. 3. Create effective business processes with partners. Some large enterprises make efficient, secure business processes a prerequisite for doing business with them. To develop efficient business processes that meet the requirements of your partners, your business needs a secure, reliable network infrastructure. 4. Make it easy to collaborate. Effective, interactive collaboration between employees, partners, suppliers, and customers is a sure-fire way to boost efficiency while also reducing costs. Integrated voice, video, and data and wireless provides the kind of interactive calendaring, videoconferencing, IP communications, and other technologies your business needs to foster seamless, easy collaboration. 5. Enable employees to take their phone systems wherever they go. Missed calls create any number of business challenges, including operational inefficiencies (from trying to reach absent colleagues), project delays, missed opportunities and lost revenues. An IP communications solution enables your workforce to have one phone number that simultaneously rings on multiple devices, greatly increasing the chances of being reached on the first try. Workers can access their entire communications system wherever they go and can check e-mail, voice mail, fax and pages all in one inbox, among other benefits. 6. Streamline communications with customers. Interacting with customers efficiently and knowledgeably helps keep them satisfied—and few things are as important to your bottom line as satisfied customers. Linking an IP communications system to a customer relationship management (CRM) solution is one way to enhance customer communications. When a customer calls, a pop-up window of the customer contact record appears on an employee's IP phone screen, computer screen, or both. Before the second ring, the employee answering the call has access to information about the customer calling, such as orders pending and recent returns. 7. Reduce unproductive travel time. Any time spent traveling, particularly by airplane, can dramatically reduce operational efficiency. An IP communications solution that offers rich-media conferencing, such as videoconferencing, helps reduce the need to travel to offsite meetings and training sessions. The time saved from traveling can be better spent on more productive pursuits. Also, reducing travel saves money. 8. Outsource IT tasks. Is it the best use of an employee's time to manage your network security or IP communications system? Often, a more efficient option is to outsource such tasks to a managed service provider. A service provider has the expertise that your business needs but may lack, without the need to spend time or money developing that expertise in house. Also, outsourcing enables your employees to stay focused on productive activities related to your business's core competencies. And that helps keep your business competitive. Outsourcing tasks can help improve customer satisfaction and your competitiveness. "A lot of small businesses think it's cheaper to do everything themselves," says AMI-Partner's McCabe. "But employees can get overloaded, and they may not be in a good mood when interacting with your customers." McCabe adds that SMBs often don't do as good a job at an IT task, such as IP communications, as a managed service provider would do for them. "And if you're not doing a good job at something, your competition probably is," she adds. 9. Improve employee retention and satisfaction. When your business has inefficient processes, such as antiquated phone systems or a sluggish network, employees can get frustrated, because they can't get their jobs done with the tools provided. Customers may perceive that frustration and lose confidence in your business. Even worse, valued employees can become burned out and decide to move on. Not only have you lost a productive worker, you must spend time and money hiring a replacement. To help ensure employees are productive and satisfied, your business needs, at a minimum, a secure, reliable, always-available network. 10. Develop a long-term technology plan. Whenever you replace hardware that has become obsolete or ineffective, it's disruptive to workers—and that results in low productivity. You can minimize or eliminate such disruptions by carefully determining short- and long-term business objectives and the carefully mapping technology solutions to those objectives. http://www.informationweek.com/10-tips-for-increasing-operational-efficiency/d/did/- CHAPTER 7 CONTROL SYSTEMS 7.1 Key Results Areas 7.1.1 Marketing Market Share 18% 35% 30% Universal Harvester Inc. Agway Chemicals Corp. Farmtech Agriland Corp. The pie graph shows the market share of each company. The Universal Harvester Inc. got 35% while the Agway Chemicals Corp. got 30% of the market share and the last one is the Farmtech Agriland Corp. got 18% market share. So therefore, the biggest market share is the Universal Harvester Inc. seconded by the Agway Chemicals Corp. Due to the confidentiality issue, the company provides estimated amounts as well as its competitors. Therefore the information above is crafted through the data given. 7.1.2 Operations Performance Indicator Bottlenecks/Success Sor t 1. Servic e Quality Customer Complaints Customer Service Service Delivery 2. Sales Perfor mance Strai ghtt en Stan dardi ze Sustai n  MINIMIZE                  Increase Sales Customer Relationship Shin e Monit oring And Evalu ation  Month ly Every transa ction Every transa ction Every transa ction Every transa ction This table above shows the factors that fall under the operation of Farmtech Agriland Corporation. It was classified according to the three critical factors which are: Performance Indicator, Bottlenecks/Success, and the Monitoring and Evaluation. And it was used by the 5s which are sort, shine, straighten, standardize and sustain. Sort means the elimination of unnecessary workplace things. Shine means it is properly and thoroughly clean the workplace every day. There will be no more unnecessary things located in everywhere. Straighten means putting the factor in lined the operation. Standardize means there will be a new norm for the workplace. And the last one is Sustain means to sustain the positive changes and maintain the changes of the new system. 7.1.3 Finance 2016 2015 P51,356,696.00 P39,190,690 REVENUE Sales Less Cost of Sale (P46,964,597) (P37,449,224) P4,392,099 P1,741,466 Less: Operating Expense (P3,878,863) (P1,401,560) Net Income before P513,235 P339,906 (153,971) (101,972) P359,265 P237,934 Gross Profit/(Loss) income taxes Less: Income Taxes Net Income after income taxes It shows about the revenue between the sales of 2015 and 2016. The result for the revenue for the 2016 is bigger than the 2015 hence, it differ only in the expenses which is the year of 2016 is bigger than the 2015. 7.1.4 Human Resource Farmtech Agriland Corporation is composed of limited manpower this includes: Supervisor, Account Payable Specialist, Billing Collection Officer, Logistic Coordinator, Sales Representative, Liaison, Driver, and Helper. 7.2 Performance Indicators 7.2.1 Marketing Farmtech Agriland Corporation ensured the customer that they will get a high quality product in a reasonable price. And to rendered good service to the customer before, during and after having the product. Farmtech Agriland also offers a staggered payment to those business men who don’t want to pay on cash. In terms of the promotion they’re depending on Customers’ Word-ofMouth but it’s not a big problem because not all people are going to buy fertilizer and they just have a small-segment of customers which are Farmers and big company (e.g DOLE, Del Monte, La Panday etc.) But they’re planning to have a brochure or catalogue so that the . The problem that we see in the company’s marketing is their Place (Distribution) they just have one cargo truck to deliver their product from the office to the customers location, if they have a delivery on South Bound but the cargo truck is not available they will just hired other Cargo Truck to deliver the product. 7.2.2 Operations The Customer Loyalty is one factor that the Farmtech Agriland Corp. focused. Every product they provide to the customer, they make sure that it has no damaged. In terms in the services that they offered they make sure that the complaints and concern of the customer are well answered and assess. Farmtech Agriland Corporation, company’s operation procedures are established. The problem that we see in terms of the company’s operation is the manpower. They are lack of manpower and the one employee has 2 or 3 task assigned. However, despite of this problem the management is still monitoring operational procedures to make sure that all transactions made by the company are all recorded. 7.2.3 Finance 7.2.4 Human Resource The company regularly monitors the performance of their employees. And the HR Manager reminds them of the task given and evaluates their progress if they’re doing great in their work. Therefore, the company organized in terms of their manpower and they have Teamwork that makes the organization united.