CASTILLO ORCHIDS: I CAN’T DO IT BY MYSELF

Submitted by

De Tomas, William Carlo C.

Diaz, Kareign Darleen Noreen R.

Fusingan, Neil Patrick V.

Guinoo, Miralona B.

Marco, Chloie Faye SP.

Mojica, Reyhanz Paulo R.

Morales, Giscelle C.

Saliendres, Cyreen M.

I. TIME CONTEXT: March 2017

II. VIEWPOINT: Paulina Castillo, owner of Castillo Orchids

III. STATEMENT OF THE PROBLEM

How will Paulina finance her plan of tapping the export market in order to grow

her business?

IV. OBJECTIVES

Long- Range

 To tap the export market

 To be Philippines' leading flower producer and distributor

 To be stable in operating the company's business

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Short- Range

 To satisfy demand for flowers in the Philippines

 To satisfy the customers with the good quality of flowers

 To earn sufficient funds

V. AREAS OF CONSIDERATION

Strengths Weaknesses
1. Paulina and Olivia are childhood 1. Organizational requirement for

friends exportation.

2. Both of them love flowers 2. Funding for the export business

3. Both own 10 hectares of farmland 3. Produced orchids by Paulina

4. Paulina got her BS Commerce could barely cope with demand

degree in St. Paul University

Opportunities Threats
1. Olivia got degree in Holiculture in 1. New entrants in the industry

University of the Philippines 2. Competition in the same line of

2. Olivia’s farm produces 50,000 business

dozens of roses

3. Olivia is supplying in area as far as

north as Cebu City.

4. Seminars attended on production

5. Export markets may bring more

dollars and employment in the

Philippines.

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VI. ALTERNATIVE COURSES OF ACTION

ACA #1: Enter into a partnership business with Olivia.

Advantages:

a. They can be great partners since they are childhood friends.

b. Managing the business will be more flexible.

c. Each partner will be able to exert their knowledge in the business.

d. It will require lesser start-up cost and the capital will increase.

Disadvantages:

a. Conflict of interest may arise in the agreement.

b. Decisions should be both agreed by the partners.

ACA #2: Paulina should continuously operate her orchid business and have other

variety of flowers to sell.

Advantages:

a. Paulina’s flower business will grow and will be able to gain enough profit.

b. She will be able to fulfill the unsatisfied demand for flowers in the Philippines.

c. Managing will be easier and less risky.

Disadvantages:

a. It will take time before she earns enough.

b. There is a possibility that Paulina will not be able to cope up with the demand

for flowers.

c. She will find it difficult to manage her business.

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ACA #3: Borrow money from financial institutions like banks.

Advantages:

a. Banks offer lower interest rates.

b. It can raise money immediately for exportation.

c. It will take less time and less effort.

Disadvantages

a. The company might struggle in paying the bank regularly.

b. The bank might only lend the company a limited amount.

c. The company will be required to provide collateral.

VII. RECOMMENDATION

Paulina Castillo recommends ACA#1.

VIII. CONCLUSION

After carefully analyzing the alternatives, Paulina Castillo has chosen ACA#1

which is to enter into a partnership business with Olivia. Since they are childhood

friends, and have the same interest, they can easily manage the business together and

make it grow. Thus, it will give them a high potential of tapping the export market.

However, other alternatives were not chosen, because aside from having fewer

advantages, Paulina still needs to manage her business with someone. It will be difficult

for her to enter the export market for there are a lot of risk and barriers. Managing the

production will also be difficult.

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As they enter into partnership, the following shall be considered:

1. Conduct a research about exportation of the product.

a) Know if there is really high demand abroad and think on how you can

satisfy that demand.

b) Determine the external factors that might affect the business. (Ex: political,

environmental, socio-economic, technology)

c) How much capital is needed?

d) Make necessary plans to safeguard the company from having risks.

2. Plan about the resources that are needed by the company to sustain the

partnership for a long run.

3. Make an official partnership agreement with Olivia.

IX. MANAGEMENT LESSONS

1. Planning. It is an essential function to anticipate the future and determine the

best courses of action to achieve company’s objectives.

2. Organizing. The management should indicate who will perform the designed

structure of tasks in the organization.

3. Controlling. The management assures efficient performance to attain the

enterprise objectives.

4. Preparation phase. It is important to collect two or more large bodies of

information that become associated with new and unique.