Case Analysis - MGT 12.ppt

7/28/2019 Case Analysis - MGT 12.ppt

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Central Problem

Financial

Instability causedby Lack of Budget

and OperationsControl


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Objectives

To exercise more effective and efficientcontrol over the operations of the venture

To come up with a precise strategic plan forthe venture to patch up the crisis they arefacing

To discuss the revision of the firms

management particularly about the control offinances To determine the probable outcomes of the

possible solutions


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Alternative Courses of Actions

1. They should have a quarterly meeting.

Advantage Disadvantage All of them will be involvedin the planning process.

Time-consuming and costly in the part of the partners inCebu.


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2. They should hire an accountant toaudit the financial statements of the

venture.

Advantage Disadvantage They can assure that thefinancial statements arereliable and consistent.

Costly


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3. They should have a strategic plan for theventure.

Advantage Disadvantage

They can determinewhether the business can

survive for the succeedingyears.They could determine theexpected budget for the

duration of the businessoperations.

The process takes a lot of time to be finalized.


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Evaluating the Present Situation The business has a problem on the control

particularly in the business finances.

Setting Goals and Objectives Purpose

Be a highly profitable business venture for its managers.

Mission To provide high quality prawns in the area at a good

cost.

Objective

Executing proper control of the business. Maintaining the communications with the rest of the

managers and customers and the suppliers.


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Determining Planning Premises External Variables

The rate of demand of/supply of the prawns

The expected competition from other big competitors. Internal Variables

The operation control of the manager. The financial budget over the operation.

Evaluating AlternativesThe management should come up with a way to

lessen the controlling problems of the venture for them to be able to realize its purpose and mission. If this problem will be settled, more opportunities willcome, thus, the upcoming threats will havecountermeasures.


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Programming The venture must provide enough number of

prawns in the pond. The venture must be able to produce their own

fingerlings through breeding process.

Budgeting Assumed/Estimated and Expected Budget
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Something to note:

There should only be one caretaker whowill also function as a technician.

Hiring of additional workers should be

done during harvesting season only. There are insufficient data regarding the

financial information of the venture.


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4. Reduce the land area for the operationof the venture. (Use only one hectare

pond for the prawn farming) Advantage Disadvantage

Reduction of expensesand maintenance.They could concentratemore on that said areafor operation and could

plan better on how toproduce high qualityprawns.

Probably less sales.


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5. Engage in two -way farming. (Onehectare pond for prawn farming and

one hectare pond for milk fishfarming) Advantage Disadvantage

They could determinewhich of the two is moreproductive. They could getadditional revenues

upon engaging two-wayfarming.

They have toconcentrate two differentfarming treatments andmaintenance.


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6. Evaluate the place if it is really suited for having this kind of business.


They could assure that thebusiness could continue for the following years if theplace is a good breedingsite for the prawns.

Costly and time-consuming.


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7. To terminate Ben Torres as its operatingmanager.


The business wouldexperience a newmanager.New set of standards for the operation are to be setby the new manager.

Family relationshipbetween Ben Torres andRic Solis will be affected.Costly and time-consuming.


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8. End the operation of the venture.


The partners will no longer

be burdened by therequests of financialinfusion to the capital.

Their investments will go

to waste.


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9. Conversion of the current business to amore in demand firm.

Advantage Disadvantage They could plan for abetter business in which allof them have a knowledgeabout it.Some of their investmentswont go to waste. They could learn fromtheir past mistakes andavoid it.

Probably morecompetitors of the newbusiness.


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Recommendation

We, group 5, highlyrecommend ACAs # 1, 2,

and 3 as the best means of solving their major problemand therefore must beenacted for the business control and operation.


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Conclusion

Therefore we state that our recommendation is highlynecessary to solve this major problem of the venture. We believethat it could be a benefit for the

firms further operation with a lessburden for each of the partners of the Lucky Prawn Farm.

Case Analysis - MGT 12.ppt

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