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RAM AGRIVET SUPPLY

A Strategic Business Case Analysis


Presented to the Faculty of
Ramon Magsaysay Memorial Colleges – Marbel Inc.

In partial fulfillment of the requirements in the course


Strategic Management (CBMEC 2)

Submitted by:
Trisha Mona E. Diaz
Lady Prea B. Marcelino
Ma. Sofia Angeline Lusoc

Submitted to:
MASHAEL C. UNAS, MBA
Instructor
Part I. Company Background
The owner Arlene Payas, started operating the business as RAM Agrivet Supplies that provides specialty products for fighting cock,
dog food, feeds for pigs and veterinary products for livestock. She was inspired to run this business because of her business
owner friend who knows and referred an empty stall by Javellana Veterinary Supply and motivated her that agrivet supply is a good
business in the market.

RAM Agrivet Supply is a well-established custom feed store, they are determined to become a basic necessity for local poultry,
piggery, and fishery owner and to offer a satisfying agrivet supplies for economic purposes. The business is engaged in retail and
distribution of custom livestock.

The RAM Agrivet Supply is a privately owned business and has been operating for nearly 8 years. In the eight years of operating this
business, they already expand having 2 more branches in different location which supplies different local farmers and retailer.

The performance of RAM Agrivet Supply in the market around the area is highly effective because the business is performing well and
gives a good lasting image to their actual and potential customers.

But one of the challenges they faced during the operation of their business was the Pandemic, there is also shortage of stocks and
materials and the AFS or African Swine Fever which affects the pigs of piggery farmers.

RAM Agrivet Supplies currently have 6 employees in the business which is in charge in sale management and delivery, making sure
that the products is in good quality and condition. RAM Agrivet Supply delivers the customers purchased product through their 3
wheels motorcycle straight into the consumer’s domicile.

Their vision is “Driving business growth, substantial earnings, and supporting farmers sufficiently and effectively.’’ And in accordance to
their vision the organization come up with their mission “Prioritizing customer satisfaction and delivering high-quality products.” This
statement serves as the direction of the business for a long-term goal and existence.
Part II. Vision and Mission Statement Evaluation

VISION STATEMENT: Driving business growth, substantial earnings, and supporting farmers sufficiently and effectively.

The vision of the organization was stated short and simple but it’s actually defined the business purpose what the organization wants
to be and set as long-term objectives of the business. This statement also serves as reminder of the sense of the organization’s
direction.

MISSION STATEMENT: Prioritizing customer satisfaction and delivering high-quality products.

Their mission created in accordance with their vision considering their concern with their customers, products and their philosophy on
delivering high-quality products. Through this statement serve as the framework of their mission the organization enable to achieve
their three main long-term goal driving growth, substantial earning and supporting farmers.
Part III. SWOT Matrix
STREGNTH WEAKNESS

1. Geographical Location 1. Unavailability of Warehouse


2. Wide Range of Product 2. Lack of Technological Tools
3. Price Discounts/ Special Price 3. Limited Stocks Display Area
4. Loyal Customers 4. Disorganize Display
5. Flexible Terms of Payment 5. Handling account balances

OPPURTUNITIES THREATS

1. Training and Seminars 1. Higher Prices of Supplies (Inflation)


2. Lower Price offered by Supplier 2. Competition
3. Suppliers offering No capital involvement 3. Customer change preference
(Consignment) 4. Presence of Animal Health Issues (ASF/ Bird
4. Development of new Public Market Flu)
5. Product Promotion Program by Suppliers 5. Unavailability of fast-moving and high-quality
products.
Part IV. IFE Matrix

Internal Factor Evaluation

STRENGTH WEIGHT SCORE WEIGHTED SCORE


Geographical Location 0.10 3 0.40
Wide Range of Product 0.15 4 0.60
Price Discounts/ Special Price 0.10 4 0.40
Loyal Customers 0.05 3 0.15
Flexible Terms of Payment 0.10 4 0.40
WEAKNESS
Unavailability of Warehouse 0.15 1 0.15
Lack of Technological Tools 0.10 1 0.10
Limited Stocks Display Area 0.05 2 0.10
Disorganize Display 0.05 2 0.10
Handling account balances 0.15 1 0.15
TOTAL 1.00 2.55

RATING:
4= Major Strength
3=Minor Strength
2=Minor Weakness
1=Major Weakness

WEIGHT JUSTIFICATION:

STRENGHT

 Wide Range of product gain the higher weight in the IFE matrix with 0.15 since its serves as the organization’s major strength, the
sales and the operation also rely on the presence of wide variety of choices for their customer. The presence of different class,
prices and quality enable to sustain provide quality product and services.

 Geographical Location, Price Discounts/Special Price and Flexible Term of Payment has the same weight with 0.10 following the
factor with the highest rate. This factor serves as the supporting factors that help the business serve its purpose, utilizes by the
organization to take advantage the availability of wide range product.

 Loyal Customers having the least percentage factor because the product is already one of the basic necessities in the market
considering its location as one of the main producers of agricultural products and livestock. Consumer will usually look for it, but
also considered the efficiency and quality services of the organization.

WEAKNESS
 Unavailability of Warehouse and Handling Account Balances becomes major weakness of the organization gaining weight of 0.15.
These two factors became the major weakness of the business because it is effect on the organization was crucial Because of
these minor weaknesses arises such as the disorganize display and the limited display area which cause by the unavailability of
the warehouse and also share the least weight of 0.05 since it can be resolve through proper organizing and warehousing.

 Lack of Technological Tools also gain as the second highest weight of 0.10 also became the major weakness of the organization.
Technology now a days is a big help for monitoring, management and providing faster transaction resulting to high customer
satisfaction. The organization currently uses manual receipt, inventories and record keeping prone to discrepancies and clerical
errors.

INTERPRETATION:

Base on the result of the Internal Factor Evaluation which gained a total of weighted score of 2.55 it is a good indication that Ram Agrivet
Supply make use of their strength and have a good strategy to minimize their weaknesses.
OPPORTUNITIES WEIGHT SCORE WEIGHTED SCORE
Training and Seminars 0.10 2 0.20
Lower Price offered by Supplier 0.15 3 0.45
Suppliers offering No capital involvement 0.15 4 0.60
(Consignment)
Development of new Public Market 0.08 2 0.16
EFE Matrix Product Promotion Program by Suppliers 0.10 3 0.20

External THREATS Factor


Evaluation Higher Prices of Supplies (Inflation) 0.10 4 0.40
Competition 0.10 3 0.30
Customer change preference 0.05 3 0.15
Presence of Animal Health Issues (ASF/ Bird Flu) 0.10 2 0.20
Unavailability of fast-moving and high-quality 0.07 3 0.21
products.
TOTAL 1.00 2.87

RATING:
4= The response is superior
3= The response is above average
2= The response is average
1= The response is poor

WEIGHT JUSTIFICATION:

OPPORTUNITIES:

 Supplier’s offering no Capital Involvement and Lower Price offered by the Supplier has the highest weight on the EFE matrix with
the weight of 0.15 since these factors are very useful for the organization. Since they are one of the biggest and fastest retailer
and distributor in their location suppliers usually offering them lower prices of supplies which help them to save more of their
capital but gaining more profit by playing their reselling prices. There are also suppliers who are offering them consignment
agreement which is a great opportunity for the organization.

 Training and Seminars along with the Product Promotion offered by the suppliers also one opportunity for the organization which
help owners and employee to expand knowledge about different variety of custom livestock feeds, proper classification and
determination of high-quality produce product. Product Promotion by Suppliers like for example 2 in 1 Bundle or Buy 1 take 100ml
of any fighting cock vitamins was a good initiative by the supplier which can be availed by the organization to encourage
customers and eye-catching tie ups.
 The Development of New Public Market at the said area also became opportunity for the organization to either expand or take
advantage of the development to create also a plan to improve stall location. It is a winning situation for both the community and
existing businesses and vendors. It can increase foot traffic to organization making them more visible for many customers.

THREAT

 Higher Price of Supplies because of Inflation, Animal Health Issues (ASF/Bird Flu) and Competition are the main threats of the
organization. These factors are uncontrollable and have a critical impact on the sales and operation of the organization. These
three gain the highest weight 0.10 because these threats will greatly affect the organization if they are not good on minimizing its
impact.

 Unavailability of High- Quality Products on the market for a period of time also affect the business profitability with the weight of
0.08 like for example pigrolac (tiki-tiki) is one of the fast-moving products of organization but unfortunately their supplier cut ties to
the said brand name and affect the business availability of the said fast moving product. They have to find more reliable suppliers
for a period of time resulting to loss of sales and customers.

 Customer Change Preferences has the least weight with 0.05. These factors usually affect the business if there’s a limited or
unavailability of the variety of product. But since the organization handling wide range of products this factor has a little effect the
organization.

INTERPRETATION:

Base on the result of the External Factor Evaluation which gained a total of weighted score of 2.87 is a good indication that Ram Aggrivet
Supply is taking advantage of their opportunities to minimize the impact of the threats.
Part V. Competitive Profile Matrix

RAM AGRIVET SUPPLY SINOY AGRIVET SUPPLY GENEROSE


AGRICULTURAL SUPPLY
CRITICAL WEIGHT SCORE WEIGHTED SCORE WEIGHTED SCORE WEIGHTED
SUCCESS SCORE SCORE SCORE
FACTOR
BRAND 0.15 3 0.45 4 0.60 3 0.45
REPUTATION
MARKETING 0.20 3 0.60 3 0.60 3 0.60
PRODUCT 0.25 4 1.00 3 0.75 3 0.75
QUALITY
PRODUCT RANGE 0.25 4 1.00 4 1.00 3 0.75
CUSTOMER 0.15 4 0.60 4 0.60 3 0.45
SATISFACTION
TOTAL 1.00 3.65 3.55 3.00

RATING:
4= Major Strength
3=Minor Strength
2=Minor Weakness
1=Major Weakness

JUSTIFICATION OF CRITICAL SUCCESS FACTOR:

 Brand Reputation – is a critical success factor to the organization and its competitor since the business line was critical to
livestock growth, productivity and health. Brand reputation for the business is crucial since it has a significant impact on the
various aspect of the organization. Positive brand reputation building customer trust and business credibility it also serves as a
competitive advantage of the business and boost its confidence on selling specific brand name.

 Marketing – This factor also considered as critical success factor for our business and its competitor. In all types of business
marketing plays a vital role it drives the business growth, customer acquisition and part of overall success. Marketing helps the
business to reduce risk associated with the changes on demand.

 Product Quality- We consider this as a critical success factor on organization and our competitor since in every business’s product
quality is a fundamental factor that also impact different aspect of the business it is interconnected to brand reputation and
customer satisfaction. Product quality also essential for long-term competitiveness and for substantial earning of organization.

 Product Range- For many businesses this also can be a critical success factor since it involves product assortment and variety of
choices for customer. Product range help the business counter customer’s different demands likes and dislikes and leads to
analyze customers preferences. This factor also led to greater opportunities, positive customers appeal and help business adjust
their product align with the market conditions.

 Customer Satisfaction- It is one of the most critical success factors for our businesses and our competitor since the business
engaging to both retail and distribution which serves as an indicator if they really fulfill the business purpose and existence. This
factor impacts customer loyalty, brand reputation and revenue growth. Customers insights and positive word of mouth matters.

INTERPRETATION:

Base on the result of Competitor Profile Matrix the tough competitor of Ram Agrivet Supply is the Sinoy Agrivet Supply with a
weighted score of 3.55.

V. TOWS Matrix

INTERNAL FACTOR STRENGTH (S) WEAKNESS (W)

S1. Geographical Location W1. Unavailability of Warehouse


S2. Wide range of Product W2. Lack of Technological Tool
S3. Price Discount/Special Price W3. Limited Stocks Display Area
S4. Loyal Customer W4. Disorganize Display
S5. Flexible Term of Payment W5. Handling account balances
EXTERNAL FACTOR

OPPORTUNITIES (O) S-O STRATEGIES W-O STRATEGIES

O1. Training and Seminars


O2. Lower Price offered by Supplier
O3. Supplier offering no Capital
involvement (Consignment)
O4. Development of New Public
Market
O5. Product Promotion by Supplier

THREAT(T) S-T STRATEGIES W-T STRATEGIES

T1. High Prices of Supplies (Inflation)


T2. Competition
T3. Customer Change Preference
T4. Presence of Animal Health Issues
(ASF/ Bird Flu)
T5. Unavailability of fast-moving and
high-quality product in market.
Part VI. Balanced Scorecard

AREA GOALS MEASURES

1. Decrease and handle the debts 1. Compare the account receivable


FINANCIAL properly with a 10% reduction at and account for bad debts of last
the end of this year. months to 3 remaining months at
2. Increase profit by 10% after 6 the end of the year 2023.
months. 2. Compare the last 6 months profit
to the current.
1. Increase the no. of customers by 1. Comppare the past sales to the
CUSTOMER 15% after 3 months. current.
2. Improve customer management. 2. Compare the former and current
customer service productivity.
1. Add right technologies and 1. No. of new technologies and
INTERNAL PROCESS equipment to improve and make the equipment in the store.
transaction process efficient at the 2. Compare the previous product
end of this year. display to the current.
2. Improve the product display in
the store.
1. Enhance the communication skill 1. No. of well-trained employees.
LEARNING AND GROWTH of the employees at the end of this 2. Level of employees technological
year. proficiency.
2. Employee technology
competency.
Part VII. Conclusions and Recommendations

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