Established in 1989, East Orchids was an orchid farm located in the campus grounds of the University of the Philippines in Diliman, Quezon City. The enterprise started as a hobby of Mrs. Prieto before it was organized as a business. At the time of the case, the owners were also evaluating expansion strategies. What are the prospects of East Orchids given that Mrs. Prieto never had any formal training on orchid growing and business management?
Author: Arturo Benedicto M. Ilano
Discipline: Strategic Management
Industry: Orchids – Cut flowers and plants
Issues: Expansion strategies, entrepreneurship
Setting: Philippines, 1992
Level of Difficulty: Undergraduate/MBA
Length: 7 pages
Case Number: 7-1992-21
Teaching Note: 7-1992-21T
*Prepared under the supervision of Rafael A. Rodriguez, Professor, University of the Philippines, as a basis for class discussion. The case is not designed to illustrate effective or ineffective handling of managerial situations. Names, financial data and other figures have been disguised. The University of the Philippines Business Research Foundation Inc. and Angping Foundation supported the writing of this case study.
East Orchids was an orchid farm located in the campus grounds of the University of the Philippines in Diliman, Quezon City. It was formally opened on May 31, 1989 by Mr. and Mrs. Max Prieto. East Orchids sold both cut flowers and plants. As is typical with orchidariums, the farm had a 3,000-square meter canopy enclosure of green netting that shrouded a huge inventory of orchids. Behind the farm was the sprawling Prieto home, a brand new structure that was garnished by the Prietos' two Mercedes Benz automobiles parked in front, along with two golf carts.
HISTORY
Mr. and Mrs. Prieto hailed from Davao, where Mr. Prieto was a former mayor. It was during the time of Mr. Prieto’s tenure that his wife Princess (“Pinsek” to her husband) became interested in orchids.