COMPONENTS OF WRITTEN CASE ANALYSIS

1. POV
-Protagonist
-Central Character who feels pressure
-makes mistakes
-has complete information
-makes assumption
2. Central Issue
-Use Parreto, deal on critical few, not on small many
Get context & learning objective
-Theory concept
-learning application
-tactical, operational, strategic
3. Areas of Consideration
-assesment
-external/internal
-SWOT+Challenge
4. Alternative Course of Action
-ACA should be independent of each other
-when, where, and what extent should it be applied
-readily applicable and immediately address the Central issue/ Problem?
-What are the possible implications
5. Evaluation
-Establish a clear parameter or criteria to draw at in each alternative
6. Recommendation
-May catergorize the adoption if ACA into short term or long term basis
7. Implementation
-STP first before 4PS

ACQUARUS FOOD INDUSTRIES INC., CASE ANALYSIS

Point of View

Mr. John Macapagal is the current proprietor and general manager of Aquarius Food
Industries (AFI) which is a small company which specializes in processed shrimp paste, which is
marketed under the brand name Neptune. He is the sole proprietor of the company which
makes him the major decision maker regarding product price, operations, and other systems
and processes involved in his business.

Central Issue
Aquarius Food Industries, Inc. has experienced stable, nearly flat sales growth for the
past few years even though AFI is selling a part of its output to other companies with whom they
have toll arrangements as an additional source of sales (Toll Manufacturing). This is due to the
fact that the sales revenue from toll manufacturing depends essentially on the availability of
shrimp fry. Abundance in shrimp fry would mean that other companies will be able to produce
their own product and have no need for AFIs services. What are the strategies should Tex do
boost sales and profits?

Areas of Consideration
SWOT ANALYSIS

STRENGTH

OPPORTUNITIES

THREATS

WEAKNESS
Alternative Courses of Action
1. Enter Luzon Market, Manufacture of SM Bonus, Drop Toll with Golden Hands
2. Enter Luzon, Distribute Neptune in Bicol
3. Drop other Cities in Mindanao
4. Another Business Venture
5. Stop the Toll Business Venture with Golden Hands
6. Operate in full Capacity (since halinon siya) lol

Evaluation
1. Enter Luzon Market, Manufacture of SM Bonus, Drop Toll with Golden Hands
- Since Golden Hands

S-W-O-T Analysis
A. FIVE FORCES (Threat and Opportunities)
Threat of Substitute

Competitors

Growth of Food Manufacturing firms in the country

According to the Center for International Trade Expositions and Missions
(CITEM), an attached strategy of the Department of Trade and Industry
(DTI), there are currently 1,165 registered processed food manufacturing
firms in the country. These have a gross added value of around of US$7.8
billion and growth is 15 % per annum.

Small Market Share of AFI

AFI is a small player in the overall food processing industry. It has local
competitors from Luzon and Mindanao.
There are also Filipino export companies. These companies have wide
range variety of native Filipino processed foods, such as fruit preserves,
coconut product, sauces, etc.

Processed shrimp paste is only a small portion of their total sales

turnover. And, sales to the local market in Luzon are more of an
afterthought, as most of their output is targeted for export.

Power of Suppliers

AFI is favored by the shrimp fry suppliers over its competitors. This is due
to the fact that AFIs competitors ten to be irregular in their purchases
whereas AFIs purchases are constant.

Bargaining Power of Buyers

Threat of New Entrants

The New Thailand Brand of Shrimp Paste

It is said to be more hygienic in packaging and appearance.

1.1 Organizational Structure

AFI is a sole proprietorship
Lean-and-mean operation
Major decision making is made by Tex together with his wife (such as pricing,
operations,etc)
1.2 Product/ Operations
The Production process is simple
AFI boasts of being low cost, low-priced leader in the industry
1.3 Market Positioning
Price is low (Price is the main criterion in making the purchase decision)
In Mindanao, Neptune and Lasap are locked in the battle of supremacy. 30%
Market share each.
Neptune retails at P13-P13.50 per bottle
It has a policy of not setting s retail price, and justs lets its wholesalers decide
on the final selling price
Frisco is priced the same as Neptune, while Lasap sets its price 10% higher.

Neptune, Lasap and Frisco are brands made in Metro Manila and sold only
in Mindanao region. The last two brands are not exported
In Luzon, bagoong alamang is bought from Supermarket shelves. The well
known brands are (Barrio Fiesta, etc)
In Visayas, bagoong alamang is hardly sold.

1.4 Competitor Profile

1.5 Toll Manufacturing
2000 cases order from Golden Hands
70% Neptune Brand, 30% from Toll
Margins for export sales are higher by 30% , vs 17% if they opt for wholesale
business
However, depends only on the availability of shrimps. Golden Hands will not
outsource if theres enough supply from their own.
1.6 Distribution
1.7 Promotions
1.8 Opportunities for Growth
1.9

B. The Company (Strengths and Weaknesses)

a. Strengths
Sole Proprietorship. Simple business structure.
Since the company is small, the company is able to easily procure the
shrimp fry unlike with other players in the industry which becomes their
biggest problem on the operations side.
The company is able to demand its forecast accurately, buy the
necessary raw materials, and stock materials
AFI is favored by the shrimp fry suppliers over its competitors
b. Weaknesses