PERFORMANCE ASSESSMENT OF ALT AGRICULTURAL SUPPLY

(A SMALL SCALE ENTERPRISE)

By

Asnairah Licawan Saransamun

Senior Highschool Student

Accountancy, Business, and Management (ABM) Strand

Northwest Hill Side School, Inc

E-mail: asnailicawan@gmail.com

For

Mykaela Christyl C. Paunillan

Masters in Business Administration

Northwest Hill Side School, Inc

E-mail: mykaela.paunillan@gmail.com

1. Introduction
 ALT Agricultural Supply was founded in 2000 and is presently in its 22nd year. Precilla

Taposok is the company's owner. This company is in the agricultural industry. ALT Agricultural

Supply is a corporation having 500,000 pesos in assets. ALT Agricultural Supply has three

workers.

The Philippines' agricultural system is one of the most vulnerable to monsoons and other

extreme weather events, which is anticipated to increase as climate change affects the

Philippines. Local policy actions, on the other hand, have been regarded by the Food and

Agriculture Organization as some of the most proactive in risk reduction.

Rice, corn, coconut, sugarcane, banana, cassava, pineapple, and vegetables are the country's

main agricultural crops. Rice is a major agricultural crop in the Philippines nowadays, and many

nations across the world buy rice and other Philippine products (Marci & Mia, 2019). Since the

1950s, rice output in the Philippines has increased dramatically. Crop yields have improved

thanks to better rice varieties produced during the Green Revolution, especially at the

International Rice Research Institute in the Philippines. The greater use of fertilizers has also

enhanced crop production. From 1.23 metric tons per hectare in 1961 to 3.59 metric tons per

hectare in 2009, average production improved.

Hog, cattle, carabao, goat, and dairy products are the most common livestock products. The

most popular poultry products are chicken and duck. The Philippines has a diverse range of fish

species due to its extensive coasts. Tuna and tuna-like variants, rounds cad, sardines, anchovies,

and slip mouth are among the most popular species.

Agriculture has a significant role in the Philippine economy. It employs over 40% of

Filipinos and accounts for roughly 20% of the country's GDP. The majority of this output comes
from agribusiness, which accounts for more than 70% of overall agricultural output (CIDA-

LGSP, 2003).

Crop cultivation is the most important agricultural activity. Other industries include chicken

broiler production, which includes chicken hatcheries (20.4%), agricultural services (19.8%), and

hog farming (18.4 percent) (NSO, 2002).

One of the biggest agricultural supply companies in the Philippines are San Miguel

Corporation, Md Agri Ventures Inc., San Miguel Foods, Inc., Bounty Agro Ventures, Inc.,

Lianga Bay Logging Co Inc., and many more. These companies are located in Manila,

Philippines, these companies focus on agriculture, forestry, fishing, and hunting.

The Department of Trade and Industry (DTI) found that prices of agricultural products

dipped to their most reasonable level today at the Commonwealth Market and various

supermarkets in Quezon City, while manufactured basic necessities and prime commodities were

pegged at their Suggested Retail Prices (SRPs) or even lower.

Agricultural products such as pork, vegetables, and fish have seen a price drop ranging from

P5.00 to P50.00. Chicken, in example, is sold at P100 per kilo, which is P45.00 less than the

Philippine Statistics Authority's declared prevailing pricing as of January 9, 2019. (PSA).

Chicken is significantly cheaper at supermarkets, ranging from P90.00 to P99.00 per kg,

depending on whether it is branded or not.

 1.1 Definition of Terms

The following terms were defined operationally in order to have a better understanding of the

study.

Agricultural Supply – store or agri-center is an agriculturally-oriented shop where one sells

agricultural supplies.

Performance Assessment – is to review your business plan, including financial statements,

to understand what is happening within your business.

PSA (Philippine Statistics Authority) – is a handy publication that includes a full set of

agricultural statistics on crops, livestock, poultry, and fisheries, as well as foreign trade and other

macroeconomic indicators relevant to the agriculture sector.

 2. Purpose

The purpose of this study is to measure the performance level of ALT Agricultural Supply in

terms of:

 Operational Management

 Technical Management

 Financial Management

 Marketing Management
 3. Review of Related Literature

The Philippines is predominantly an agricultural country, with a substantial portion of the

population living in rural areas and relying on agricultural operations to support themselves.

Ndiame Diop, World Bank Country Director for Brunei, Malaysia, Thailand, and the

Philippines, said, "Modernizing the country's agriculture sector is a very significant objective for

the Philippines." With the exception of a few small natural resource-rich countries, no country

has successfully transitioned from middle-income to high-income status without achieving an

effective transformation of their agri-food systems. Transforming agriculture and food systems is

always difficult, but the country's new vision for agriculture, current thrust for diversification and

use of modern technologies, and effective management of food supply during this pandemic

cleave to this challenge (David Llorito, 2020).

 According to the World Bank's recent research, transforming Philippine agriculture into a

vibrant, high-growth sector is critical for the country's recovery, poverty reduction, and inclusive

growth.

3.1 Performance of Philippine Agriculture

At constant 2018 prices, the value of agricultural and fisheries production increased by 0.6

percent in the fourth quarter of 2021. This was due to increases in crop, poultry, and fishery

production. Livestock, on the other hand, had a decrease in productivity. Crops increased by 3.1

percent, accounting for 56.2 percent of overall agricultural output. Palay and corn production

increased by 1.2 percent and 6.3 percent, respectively (Dennis S. Mapa, Ph.D., 2021).

Livestock production fell by -19.3 percent, accounting for 14.2 percent of overall agricultural

output. The amount of hogs produced has declined by -26.2 percent. Poultry production, which

accounts for 13.5 percent of total agricultural output, increased by 2.5 percent in the second

quarter of 2021, compared to a -4.7 percent loss the previous year. Duck, chicken, and duck eggs

all saw increases in production (Dennis S. Mapa, Ph.D., 2021).

3.2 Factors that affect the Agricultural Production

Some of the geographical factors influencing agriculture are Natural Factors, Economic

Factors, Social Factors, and Political Factors. Growth and development of agriculture is always

directed and determined by physical, economic, social and political factors. In fact, geographical

factors play a vital role in agricultural development, in spite of the technological and scientific

development (Smriti Chand, 2011)

Performance indicators are criteria that can be used to evaluate the performance of products,

services, and product ion processes. Aside from that, performance indicators are operationalized
process characteristics that evaluate a system's efficiency and/or effectiveness to a norm or goal

value (Van derVorst, 2000). A PMS combines methodical approaches for defining company

goals with frequent feedback reports that show how well those goals are being met (Simons,

2000). PMS tells decision makers if they're on track to accomplish their objectives, if customers

are happy, and if and where improvements are needed.

3.3 Operational Management

The process of managing the inner workings of your company so that it functions as

effectively as possible is known as operations. Every small business owner must supervise the

design and administration of behind-the-scenes activities, whether they create items, sell

products, or provide services (Ty Kiisel, 2020).

Growing and harvesting crops, or raising fowl or animals for the primary goal of profit or

livelihood, or undertaking agricultural research or instruction by an educational institution, are

all examples of agricultural operations.

Operational performance assessment gives a third-party opinion on how well a company is

"really" performing. It provides a fact-based framework for evaluating people, processes, and

technology by assessing essential data and industry standards and putting together a sensible,

cost-effective, and actionable improvement plan (Edward Industries, 2020).

3.4 Technical Management

A wide range of innovations have benefited supply-chain management, which is the

systematic, strategic coordination of business functions across a company or companies. As a

result, the food sector today is vastly different from even a few decades ago. Without a question,
technology has increased profitability and efficiency for the majority of supply chain participants

(Jonathan et al., 2015).

In the twenty-first century, innovation is still very vital. In the food sector, newer instruments

like electronic gadgets and information technology, as well as green and sustainable

technologies, are an important aspect of supply-chain management. Rather than individual

enterprises, supply chains frequently compete with one another. Various technologies have the

ability to provide those supply chains a competitive advantage, and in highly competitive

marketplaces, these technologies can decide which companies thrive and which companies fail

(Jonathan et al., 2015).

3.5 Financial Management

Financial Management for Agribusiness is a comprehensive guide to managing invested

finances, physical resources, and labor for all those involved in agribusiness, including farmers,

horticulturists, and supporting enterprises. It walks you through all of the steps that lead to a

finished business plan, using simple examples to help you along the way (Graham et al., 2007).

Financial statements, profit and loss statements, and cash-flow statements are some of the

financial instruments a farmer might use to assess, plan, and regulate his business. The amount of

money invested in farm assets, existing debts, the owner's ownership in the firm, and the degree

to which the farm is liquid and solvent are all included on a financial statement (Britannica).

The majority of farmers and ranchers still prioritize output over planning, recordkeeping, and

marketing. However, as input costs rise, access to capital becomes more difficult, and

commodity markets become more volatile, financial and risk management skills become
increasingly important. As we go farther into the twenty-first century, reductions in the

government's agricultural program safety net, breakthroughs in biotechnology and information

technology, and rising globalization of competition will continue to put pressure on traditional

management practices (Jose G. Pena and Danny Klinefelter, 2021).

3.6 Marketing Management

Business executives' practical use of diverse web platforms leads to new prospects (Gaikwad

& Kate, 2016). Consumers use the Internet to research products and services before making

purchases (Smith, 2017). With the visibility and channels of online sales and social media

advertising becoming powerful means to access diverse markets for business development,

business owners utilize the Internet as a marketing tool for financial success and to assist in

building communication (Banica, Brinzea, & Radulescu, 2015).

In 2013, there were 28.8 million small enterprises, accounting for 99.7% of all firms (U.S.

Small Business Administration, 2016). Consumers are increasingly adopting Internet

technologies, according to Jones, Borgman, and Ulusoy (2015), which gives opportunity for

companies to contact and engage with more people through websites and social media sites.

According to Smith (2017), 69 percent of consumers utilize social media to provide product and

service information. However, success in internet marketing necessitates the investment of time

and money to develop high-quality content and maintain a strong online presence.

4. Methodology

4.1 Research Locale

 The locale of the study is at Located at Dayao Street, Kidapawan City, North Cotabato.

Figure 1, ALT Agri. Figure 2, front of ALT Agri. Supply

Supply Location Location

4.2 Evaluating Methodology

The evaluating methodology will evaluate

each dimension and designated statements based on criteria listed. The evaluation form includes

check boxes and statements that correspond to them. “I am optimistic that I can handle all

aspects of this part of my business.” very experienced, the manager/owner is doing a great job

managing and improving the business. “I have experience or training in all or most of the aspects

of this part of business.” the manager/owner is

comfortable and willing to learn where the

business is lacking. “Most of the relevant skills

are familiar to me or I have prior experience with

them.” Moderate, the manager/owner is still

lacking in some aspects but is doing good. “I have

some experience or knowledge of some of the required skills, but not all of them.” Somewhat

familiar. “This aspect of running a business is completely new to me.” the manager/owner has no

experience at that certain field.

 I am I have Most of the I have some This aspect of
optimistic that experience or relevant skills experience or running a
I can handle training in all are familiar to knowledge of business is
all aspects of or most of the me or I have some of the completely
this part of my aspects of this prior required skills, new to me (5)
business (1) part of experience but not all of
business (2) with them (3) them (4)
Indicator 1

5. Results and Discussion

The results and discussions from the ALT Agricultural Supply assessment, which were

prepared to measure and assess the said company's performance, are contained in this section.

Operational management, technical management, financial management, and marketing

management are among the four primary indicators for business corporation that are assessed.

TABLE 1. Operational Management

Indicators Score
Goal setting 2
Market research 3
Developing production, marketing & financial plans 2
Researching legal requirements 2

Table 1. shows the corporation’s operational management, based on the survey the
corporation scored “2” on goal setting, developing production, marketing & financial plans, and
researching legal requirements which means the firm has the experience and knowledge of the
required skills, but are still lacking at some aspect. Market research scored “3” which denotes
that the enterprise is still lacking in some aspects but is doing the good.

TABLE 2. Technical Management

Indicators Score
Keeping up with the latest production & marketing trends 2
Maintaining & repairing tools & equipment 2
Implementing conservation practices 2

Table 2. showcased the ability of the enterprise in technical management. Keeping up

with the latest production & marketing trends, maintaining & repairing tools & equipment, and
implementing conservation practices, all scored “2” which means that the corporation has
experience and has trained for those certain skills.
 TABLE 3. Financial Management
Indicators Score
Collecting payments 2
Bookkeeping: paying bills & taxes 3
Monitoring cash flow 3
Making quick decisions 2
Record keeping (e.g., financial, production, sales) 3
Managing debt 3

Collecting payments and making quick decisions scored “2”, this signifies that the
corporation has experience and has been trained in those areas of expertise. Bookkeeping: paying
bills & taxes, monitoring cash flow, record keeping, and managing debt scored “3”, denoting that
the firm do it moderately.

TABLE 4. Marketing Management

Indicators Score
Choosing marketing strategies 1
Developing promotional materials; advertising 1
Monitoring competition & market conditions 2
Adapting quickly to sudden changes 2
Selling farm products & services 2

Marketing is showcased in table 4. Choosing marketing strategies, and developing

promotional materials; advertising, scored “1” which is the highest point, this means that the firm
is confident that they can handle this certain aspect in business planning. While the rest scored
“2”, this implies that the firm has experience and has been trained in that particular ability.
 6. Conclusion

Performance Rating Scale was used in this study to assess the performance level of ALT

Agricultural Supply. The researcher discussed the four (4) factors that affects the performance

level of an agriculture supply, specifically; operational management, technical management,

financial management, and marketing management. According to the data gathered, ALT

Agricultural Supply is doing well in terms of doing their business, the firm is up to date and are

always trying to improve and enhance in certain aspects, though there are some lacking but the

firm knows how to handle it based on their assessment. Every factor is vital for a business to run

smoothly.

7. Recommendation

Based on the results of the study, the researchers recommend the enterprise to:

1. ALT Agricultural Supply should create a Facebook account to enable potential clients

buy their products and engage with them via social media.

2. ALT Agricultural Supply needs to improve their debt management and record keeping.

3. ALT Agricultural Supply should continue to do what it is doing; the firm simply needs to

improve a few things like; bookkeeping and monitoring cash flow.

References
Banica, L., Brinzea, V., & Radulescu, M. (2015). Analyzing social networks from the

perspective of marketing decisions. Scientific Bulletin of Economic Sciences, 14,

1437-1450. Retrieved from www.economic.upit.ro/repec

Britannica. Financial management and large-scale operation. Retrieved from

https://www.britannica.com/

CIDA-LGSP (2003). Crops and Livelihoods.Retrieved from

file:///C:/Users/admin/Downloads/528-Article%20Text-1639-1-10.

David Llorito (2020). Food and Nutrition and Epidemic. Retrieved from

https://reliefweb.int/report/philippines/transforming-philippine-agriculture during-covid-

19-and-beyond-june-2020.

Dennis S. Mapa, Ph.D., (2021). Performance of Philippine AgricultureValue of Production in

Agriculture and Fisheries. Retrieved from https://psa.gov.ph/system/files/Press%20Release

%2C%20Value%20of%20.

Edward Industries, (2020). Operational Performance Assessments. Retrieve from

https://edwps.com/operational-performance-assessments/.

Gaikwad, M., & Kate, P. (2016). E-marketing: A modern approach of business at the door of

consumer. International Journal of Research in Commerce and Management, 7, 56-61.

Retrieved from www.ijrcm.org.in

Graham et al., (2007). Financial Management for Agribusiness. Retrieved from

https://ebooks.publish.csiro.au/content/financial-management.
Jose G. Pena and Danny Klinefelter, (2021). Financial Management: The Key to Farm-Firm

Business Management. Retrieved from

https://agrilifeextension.tamu.edu/library/agricultural-business/financial.

Jones, N., Borgman, R., & Ulusoy, E. (2015). Impact of social media on small businesses.

Journal of Small Business and Enterprise Development, 22, 611 632. Retrieved 2021-03-29.

Marci, Mia (2019-06-21). "Why do Filipinos like to eat rice?". Pepper (in American

English). Retrieved 2019-12-03.

National Statistics Office (2002). Census of Agriculture: Location of the farm. Retrieved

from https://books.google.com.ph/books/about/2002.

"Palay: Volume of Production by Cereal Type, Geolocation, Period and Year". CountrySTAT

Database. Bureau of Agricultural Statistics. Archived from the original on 20 March 2011.

Retrieved 30 March 2011.

Paunlagui (2002). Report of the Director General 2002–03 Volume 13. Retrieved from

https://www.fao.org/3/ae946e/ae946e03.htm#:~:text=The%20Philippines.

"Philippines at a glance | FAO in the Philippines | Food and Agriculture Organization of the

United Nations". www.fao.org. Retrieved 2021-03-29.

Simon, (2000). Performance Measurement & Control Systems for Implementing Strategy.

Business & Economics - 348 pages.

Smith, A. (2017). The evolution of technology adoption and usage. Retrieved from

www.pewresearch.orgSmriti

Statista Research Department (2021). Retrieved from https://www.statista.com/.

Ty Kiisel, (2020). “What is Operations? And Why Does My Business Need It?”. Retrived from

https://www.ondeck.com/resources/what .

U.S. Small Business Administration. (2016). Frequently asked questions. Retrieved from

www.sba.gov

Van derVorst, (2000). Quantifying the Agri-Food supply Chain (pp.15-26).

DOI:10.1007/1-4020-4693-6_2.

APPENDIX A
Letter to the Business Establishment

ALT Agricultutal Supply

Dayao Street
Kidapawan City, North Cot.

01/29/22

Subject: Seeking permission to conduct a survey via Google Forms

Respected Sir/Madam,
This is to inform you that we are planning to conduct a survey via Google Forms regarding your
business’ performance assessment. The aim of the survey is to attain knowledge on performance
assessment. We are sending this letter in order to seek your kind permission for conducting the
survey. The said survey could help us gain better knowledge about agricultural supply
assessment.

The link for the said survey: https://forms.gle/fKSnuEjENvGkuBqdA

We look forward to a quick and positive response from your side. For any queries feel free to
contact us on asnailicawan@gmail.com

Thanking you,
Yours Truly,
Asnairah Saransamun,
09958814845

APPENDIX B
Questionnaire
Direction: The lists below are statements which are designated to determine the performance of
the Agricultural Supply business in terms of the following indicators. You are requested to give
your honest answer by checking (/) on the designated box that corresponds to your best answer
which reflects your rating using the legend below.
Scale
1- I am optimistic that I can handle all aspects of this part of my business.
2 - I have experience or training in all or most of the aspects of this part of business.
3 - Most of the relevant skills are familiar to me or I have prior experience with them.
4 - I have some experience or knowledge of some of the required skills, but not all of them.
5 - This aspect of running a business is completely new to me.
 I am I have Most of the I have some This aspect
optimistic experience or relevant experience or of running a
that I can training in all skills are knowledge of business is
handle all or most of familiar to some of the completely
Operational
aspects of the aspects of me or I have required new to me
Management
this part of this part of prior skills, but not (5)
my business (2) experience all of them
business with them (3) (4)
(1)
1. Goal setting
2. Market
research
3. Developing
production,
marketing &
financial plans
4. Researching
legal
requirements

I am I have Most of the I have some This aspect

optimistic experience or relevant experience or of running a
that I can training in all skills are knowledge of business is
handle all or most of familiar to some of the completely
Technical
aspects of the aspects of me or I have required new to me
Management
this part of this part of prior skills, but not (5)
my business (2) experience all of them
business with them (3) (4)
(1)
1. Keeping up with
the latest
production &
marketing
trends
2. Maintaining &
repairing tools
& equipment
3. Implementing
conservation
practices
 I am I have Most of the I have some This aspect
optimistic experience or relevant experience or of running a
that I can training in all skills are knowledge of business is
handle all or most of familiar to some of the completely
Financial
aspects of the aspects of me or I have required new to me
Management
this part of this part of prior skills, but not (5)
my business (2) experience all of them
business with them (3) (4)
(1)
1. Collecting
payments
2. Bookkeeping;
paying bills &
taxes
3. Monitoring cash
flow
4. Making quick
decisions
5. Record keeping
(e.g., financial,
production,
sales)
6. Managing debt

I am I have Most of the I have some This aspect

Marketing optimistic experience or relevant experience or of running a
Management that I can training in all skills are knowledge of business is
handle all or most of familiar to some of the completely
aspects of the aspects of me or I have required new to me
this p art of this part of prior skills, but not (5)
my business (2) experience all of them
business with them (3) (4)
 (1)
1. Choosing
marketing
strategies
2. Developing
promotional
materials;
advertising
3. Monitoring
competition &
market
conditions
4. Adapting
quickly to
sudden
changes
5. Selling farm
products &
services