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SOLID AGRICULTURAL COMPANY

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SOLID AGRICULTURAL COMPANY
SOLID AGRICULTURAL COMPANY

I. EXECUTIVE SUMMARY

Solid agricultural company is a family owned company that has been in existence since 1960. It operates piggery farms in Antipolo, Rizal and Meycauayan, Bulacan. It has grown conservatively due to limited family resources. The family has not resorted to, using borrowed funds. The company was previously primarily managed by Mr. Henry Koh. But in the recent years, his son Mr. Manuel Koh helped in the management of the company. Mr. Manuel Koh saw an opportunity for expansion. The expansion is projected to increase revenue and decrease the cost of sales. This however requires substantial amount of capital that cannot be provided by the company alone. Additional resources are necessary. Mr. Bince and Mr. Antonio are interested in giving financial investment to the company to finance expansion in exchange for a management position. Mr. Bince, a CPA, would ask to be involved with accounting and the custody funds. Mr. Antonio will want to take on the marketing function.

II. VIEWPOINT Mr. Manuel Koh

III. AREAS OF CONSIDERATION

*STRENGTHS
1.Koh’s mastery in agricultural development
2. Family owned company. Managed by Manuel who completed his degree in General Management at well-known Manila University
3.Debt free, the owner does not resort to borrowed funds.

*WEAKNESSES
1.Enough production of supply requirements of the pig finisher farms in Antipolo and Bulacan
2.Limited resources, do not resort in using borrowed funds.
3.Low Return on Investment (1.4%) and Net Profit Margin (0.62%)
4.Long growing period of hogs.
5.Large amount of working capital especially on cost of feeds

*OPPORTUNITIES
1. Proposed Novaliches farm may house the administration operations of Meycauayan farm, increasing the production of the latter.
2. Feed mill in Novaliches can produce the feeds for the expanded needs of the Antipolo and Meycauayan farms.
3. Novaliches is near to major markets of manila.
4. Increased population in Metro Manila

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