Case Study 1

Mary and Maria are two enterprising youth. They are fresh graduate from HCCD, State of Davao. They
thought instead of finding a job, they will launch fresh vegetables in the markets. Having learnt of the
future conventional foods, they decided to venture into cultivation of mushrooms.

Mushrooms are known to be the best alternative food for vegetarians. For Mary and Maria fund raising
was a serious handicap for mass production. However, the first trial batch of mushrooms that they
produced was bought by Star Hotel in the state. Further, the hotel placed orders for supply of 20 kgs
every day.

Now mushroom industry is run by small entrepreneurs, like Mary and Maria. Another big player M/s
Ashta Mushrooms, equipped with cold storage facility was more interested in the export market.

Mary and Maria have set their sights high. They aim to sell mushrooms in a very big way all over Davao
Region. Mushrooms have a great market potential and is a perishable food.

Questions:

1. How will you advise Mary and Maria, as how to increase the consumer awareness about this
new product? (25 points)
2. What would be your suggestions for distribution channel for mushrooms?
a. Design a distribution channel for Mary and Maria Mushrooms. (15 points)
b. Discuss why this kind of distribution channel is appropriate for Mary and Maria’s
mushroom business. (15 points)

Case Study 2

Firms in Metro Davao are losing productivity because of Facebook. Office staff are spending too long on
the social networking site. According to The Associated Chambers of Commerce and Industry
(Assocham) employees use Instagram, Facebook, Myspace, and Linkedin for "romancing" and other
purposes. On average, employees spend an hour a day on sites like Facebook. This reduces productivity
by 12.5%. Nearly half of office employees accessed Facebook during work time. Some 83% saw nothing
wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England
banned staff from accessing Facebook on its computers when it was discovered that they spent, on
average, 400 hours on the site every month.

Questions

1. What is meant by productivity?

2. Analyze the impact on a fall in productivity on costs.

3. Analyze the possible consequences for businesses in India of banning access to Facebook and other
social networking sites.

4. Do you think access should be denied?