The Philippines was first put on the map by Lusitanian adventurer Magellan working for the Spanish throne on March 16. 1521. The Philippines had become a Spanish settlement and was the first state to be named after a crowned head. Phillip II of Spain. 1 Spanish regulation had continued until 1898 when the Philippines had become an American settlement following the Spanish-American War for the baronial amount of $ 20 million. In 1942 during WWII. the Philippines had fallen under Nipponese business and was liberated by American and Filipino forces under the leading of General Douglas MacArthur in a ferociously contested conflict that raged on between 1944 and 1945.

The Philippines had attained its independency on July 4. 1946. and had a operation democratic system. 2 The Philippines Archipelago consisted of 7. 100 islands. covering an country of 299. 735 square kilometres and was somewhat larger than Arizona. The capital metropolis of Manila was situated on the largest Filipino island of Luzon ( see Exhibit 1 ) . The Philippines had a gross domestic merchandise ( GDP ) per capita of $ 3. 400. 3 The per centum of the population of the Philippines populating below US $ 2 a twenty-four hours was 45. 2 per

PHILIPPINE BUSINESS ENVIRONMENT

Research conducted in 2009 showed that the Philippines was ranked hundred-and-fortieth for easiness of making concern and 155th for get downing a concern. out of a sum of 178 states. It took on mean 15 processs and a sum of 52 yearss to finish concern startup processs in the Philippines compared to six processs and 44. 2 yearss and 5. 8 processs and 13. 4 yearss for the same procedure in Asia and Organisation for Economic Cooperation and Development ( OECD ) states. severally. 5 The Philippines had the 2nd last nest eggs and investing as portion of GDP ratio in Asia6 ( see Exhibit 2 ) .

Filipino Fishing Industry

The Philippines has entire territorial Waterss of 2. 2 million square kilometres. of which coastal Waterss comprise 266. 000 square kilometres and coastal reef country ( 10 to 20 fthms deep. where reef fishing takes topographic point ) comprise 27. 000 square kilometres. 7

In 2003. the Philippines ranked 8th among the top fish-producing states in the universe with its entire production of 3. 62 million metric dozenss of fish. crustaceans. molluscs and aquatic workss ( including seaweed ) . The production constituted 2. 5 per cent of the entire universe production of 146. 27 million metric dozenss. 8

The fishing industry’s part to the country’s GDP was 2. 3 per cent and 4. 2 per cent. at current and changeless monetary values. severally. The industry employed a sum of 1. 614. 368 fishing operators countrywide. 9 of which the artisanal piscaries sector accounted for 1. 371. 676. 10 Artisanal fishing operations were typically family-based and used smaller trade.

There were a sum of 469. 807 angling boats in the Philippines. of which 292. 180 were non-motorized and 177. 627 were motorized. 11 Fish was non merely an of import beginning of nutrition. but as fishing did non necessitate landownership or particular licenses it was an employment of last resort for people who had no other agencies of subsistence.

MIA. DENMARK

MIA was established in Denmark in 1975 by affluent man of affairs Hagen Nordstrom. who dedicated the NGO to his married woman Mia and made contending poorness his life’s work. ( MIA stood for “beloved” in Danish. ) MIA had ab initio focused entirely on poverty-alleviating undertakings in Africa and had expanded its operations to Latin America and the Caribbean merely in the early 1990s.

The grandson of Nordstrom. Gillis Nordstrom. had taken over as MIA president in 2004 on the Eve of the Bander Aceh Tsunami of December 26. 2004. which devastated Southeast Asia and killed every bit many as

5

World Wide Web. doingbusiness. org/ExploreEconomies/ ? economyid=153. accessed November 15. 2008. World Wide Web. adb. org/Documents/Books/ADO/2002/Update/ado2002update. pdf. accessed December 18. 2008. 7
World Wide Web. scribd. com/doc/354869/2005-Fisheries-Profile # . accessed December 5. 2008. 8
World Wide Web. scribd. com/doc/354869/2005-Fisheries-Profile. accessed November 15. 2008. 9
NSO 2002 Census for Fisheries.
10
World Wide Web. scribd. com/doc/354869/2005-Fisheries-Profile. accessed November 15. 2008. 11
World Wide Web. scribd. com/doc/354869/2005-Fisheries-Profile # . accessed December 5. 2008. 6

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130. 000 people. 12 Nordstrom had taken inaugural and redirected MIA to concentrate on catastrophe recovery and poorness relief undertakings in Southeast Asia.

MIA had established an office in Manila in January 2006. and the immature Danish development economic expert Borje Petersen was hired to pull off the MIA Philippines office. Petersen was paid a get downing wage of $ 75. 000 a twelvemonth plus lodging. somewhat below norm for a comparable development economic expert place. Petersen knew that MIA’s attending was focused on Indonesia and Malaysia. which had been the hardest hit by the tsunami. and was dying to carve out a place for MIA Philippines by planing an exceeding undertaking. As the enlargement into Asia was the pet undertaking of MIA’s president. Petersen felt assured that support would be easy appropriated and even expedited.

Petersen knew that the mean abroad poster for a development economic expert for MIA was two old ages and had rapidly established contact with local and international stakeholders and put up legion meetings with big development undertaking opposite numbers such as the Asian Development Bank. the World Bank and the German development assistance organisation GFZ to acquire an expedited apprehension of the Philippines and its alone demands.

Based on the initial research. Petersen had decided that. whereas an agricultural undertaking would be executable. it would take a long clip to recognize and the result could be complicated given the Philippines’ proneness to be hit by typhoons. Petersen’s research had revealed that small-scale aquaculture undertakings had been successfully implemented in the Philippines in the yesteryear. However. there were barely any undertakings to talk of directed at artisanal fishing and picking up on the vested chance and his desire to present fast consequences and turn out himself worthy of the undertaking that MIA and its president demanded. he had chosen to plan a undertaking assisting artisanal fishermen.

Petersen had researched the possibility of assisting a fishing small town near to Manila and the hunt for the ideal small town had come to a successful stoping when MIA’s driver. Vicente Tubo. had mentioned how some of his distant cousins fished for a life in a fishing small town seven to nine hours by auto from Manila. A factfinding mission to the small town Barangay San Hagon was undertaken and the small town was therefore chosen as the donee of MIA’s pilot undertaking in the Philippines.

BARANGAY SAN HAGON

Barangay San Hagon boasted 125 families and had a resident population of
625. San Hagon lay on the south seashore of Luzon. the largest island of the Philippines. The Barangay was the smallest administrative division in the Philippines and stemmed from the Spanish “Barrio. ”13 Barangay San Hagon was administered by a local authorities unit ( LGU ) and consisted of seven Barangay council members and a president.

The president of Barangay San Hagon was Rafael Buenaventura. age 59. who had held office for more than a decennary. Fishing small towns in the Philippines were really vulnerable to external hazard. particularly natural catastrophes such as typhoons. implosion therapy and fish putting to deaths. which badly affected their fiscal state of affairs.

World Wide Web. cityu. edu. hk/searc/tsunami/index. hypertext markup language. accessed November 18. 2008. World Wide Web. i-site. ph/Factfinder/barangay. hypertext markup language. accessed December 23. 2008.

BARANGAY SAN HAGON’S ECONOMY

Fishing was the chief business of the small town. Secondary businesss included rice agriculture. fruit and vegetable growth and farm animal elevation. The service sector consisted of boat builders. mechanics. Barbers. seamsters. drivers and Sari-Sari shop operators ( ma and pop-type convenience shops ) . Fishing was undertaken entirely by work forces. whereas most of the other businesss and post-fishing activities were undertaken by the adult females of the small town.

The small town boasted 12 abroad workers employed as unqualified labourers in different parts of the Arabian Peninsula who sent back remittal payments. It was believed that more than 10 million Filipinos worked abroad and supported their households with remittal payments. The day-to-day income for the San Hagon fisherman was about $ 1 per twenty-four hours.

The fishermen of San Hagon used “banka boats. ” the traditional outrigger type of boat used in Southeast Asia. Whereas some fishermen had utilized traditional agencies of angling with hook and line. gill cyberspaces and bamboo fish traps. the bulk chose to utilize blast and nitrile fishing. Blast fishing consisted of throwing an explosive charge or a stick of dynamite into the sea. The detonation immediately killed every life being within its scope including coral reef. A figure of the fish would drift and the fishermen would lift out them up. Quite a big figure of the dead fish. nevertheless. would remain submerged.

Homemade explosives from readily available stuffs such as powdery K nitrate or an ammonium nitrate and kerosene mixture packed in glass bottles were frequently used. These mixtures were frequently unstable and exploded prematurely. maiming or killing fishermen. Each small town had a figure of limbless fishermen and a narrative of how an explosive device had killed a fellow fisherman. 14 Cyanide fishing consisted of force outing nitrile into the caves/dwellings of the fish in the coral reef. Fishermans used stopgap pumps. which pumped oxygen down a fictile tubing. to plunge into the sea.

The method was unsafe and most fishermen had experienced some signifier of crook while plunging. The nitrile killed up to 75 per cent of the fish on contact. Cyanide besides killed the coral reef. 15 Once the coral reef died. fish were displaced as a consequence of the interruption in the nutrient concatenation and deficiency of protection. Blast and cyanide fishing did non necessitate any existent accomplishment and fishing cognition and even though both methods were illegal and there were legion Torahs in topographic point. it was impossible to efficaciously implement these Torahs.

SAN HAGON’S CAPITAL ASSETS

The small town of San Hagon had basic capital assets on which it based its competitory place. Most fishing small towns in the part had similar capital resources.

Human Capital

Education: Most of the villagers had some high school instruction. Skills: Fishing and farming accomplishments were learnt from an informal web of chap
villagers. friends. etc. 14

World Wide Web. coon bear. org/about_wwf/what_we_do/marine/problems/problems_fishing/destructive_fishing. accessed December 24. 2008.
15
World Wide Web. coon bear. org/about_wwf/what_we_do/species/news/stories/index. cfm? uNewsID=5563. accessed December 23. 2008.

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Employment: Most villagers had multiple businesss in order to bring forth adequate income to do a life.

Social Capital

Entree to governmental and non-governmental information beginnings: The small town had limited entree to governmental and non-governmental organisations for the airing of cognition. Information was disseminated from an informal web of fellow fishermen. friends and relations. Role of adult females: The adult females of the small town were active in the work force as a beginning of free labour but had small decision-making power.

Natural Capital

Entree to natural resources: The villagers had free entree to the ocean. land and H2O. Resource ownership: About all villagers owned their little secret plans of land where they farmed or raised farm animal.

Fiscal Capital

Access to funding: The small town had limited entree to public or private funding. Savings possible: The villagers had limited nest eggs possible due to their limited income. Income coevals: The subsistence fishing.
agriculture and farm animal raising activities of the small town coupled with services provided by the villagers allowed for subsistence life conditions. Remittances: The small town had 12 abroad workers who on a regular basis sent remittals to back up their households.

Physical Capital

Entree to electricity: The small town owned an old Diesel generator that provided electricity. The generator required frequent care work and was out of committee often when there was no money to buy Diesel fuel. This occurred due to miss of income as a consequence of hapless fishing consequences. increased outgos during the months when school-aged kids needed supplies and in times when roll uping by dues owed by families became a job.

Entree to manners of communicating: Due to its distant location and little population. the small town did non hold entree to phone lines or radio phone service. The nearest phone line was located in San Jose. a larger colony that was three hours off by auto.

Entree to transit: San Hagon merely had internal soil roads and route entree was a job. particularly in the rainy season. Roads linking San Hagon to the outer universe were largely unpaved and it was hard to voyage the roads at dark or during the rainy season. which was five to six months of the twelvemonth. Manila. the capital of the Philippines. was located seven to nine hours off by auto.

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Whereas most people in the small town walked. the bicycle/tricycle was the preferable manner of conveyance. The better-off families boasted little bikes. of which there were more than a twelve. Transport to and from the small town was provided by a Jeepney ( an extended U. S. military landrover left over from WWII ) . the traditional signifier of public conveyance in the Philippines operated by one of the villagers that normally left for San Jose early in the forenoon and returned in the afternoon. Jeepneys transported people. fruits and veggies. farm animal. etc. 16

Entree to safe H2O supply: The small town did non hold running H2O and depended on legion deep fresh H2O Wellss for its fresh H2O supply. Home ownership: More than 95 per cent of families owned their ain homes. The better-off families had cement walls and galvanized Fe sheet roofing. Boat ownership: Banka boat ownership was close to 100 per cent. Approximately one tierce of these bankas were motorized.

Other: Most families owned modest family contraptions and installations. such as telecastings. wirelesss and electric fans.

EXISTING MODUS OPERANDI

Under the prevalent conditions. fishermen would set aside plenty to feed their households and sell the remainder of the gimmick at the small town square or exchange it against fruits. veggies. rice and other staple goods. The monetary value of fish was non fixed and would fluctuate when there was an glut and the swap equivalent of other merchandises would travel up in monetary value. Monetary values of fish and other goods were besides affected by holds in the reaching of supply jeepneys. which supplied the village’s three Sari-Sari shops.

Commerce with other small towns was limited. as these small towns had a similar economic apparatus. Few purchasers of all time came to San Hagon due to the farness of the small town and the hapless route conditions. The few that came were treated suspiciously. as there had been legion occasions when smaller purchasers had taken the fish on cargo but had non paid for them. The larger bargainers avoided San Hagon wholly and opted to make concern with small towns that were more accessible.

Fish was an easy perishable trade good and transporting fish for more than a twosome of hours without infrigidation or cold storage was non possible due to the prevailing heat. There was no entree to frost in the part and the cost of a refrigerated vehicle was beyond the village’s means. Some fishermen chose to dry extra fish and sell it locally. even though dried fish made less net income than fresh fish. or devour it themselves when fresh fish supplies were low.

Even though the villagers complained at times. they had accepted the life style they led. as they did non hold the fiscal means or knowledge to change their state of affairs. The lone other option was to go forth the small town. migrate to larger metropoliss and look for occupations. of which there were merely low-paying. humble 1s. The mantra. “Give a adult male a fish ; you have fed him for a twenty-four hours. Teach a adult male to angle ; and you have fed him for a life-time. ” had become a world when MIA had chosen to assist the small town of San Hagon.

The small town dwellers had seen the effects of NGO aid and how it had transformed the support of other fishing small towns. The visual aspect of a European NGO was a approval and intend an inflow of muchneeded money.

Diving VILLAGES AND ENVIRONMENTAL PROTECTION

A figure of angling small towns in the part had made the passage from angling small town to plunging small town with the aid of foreign NGOs. Diving small towns were small towns that catered to the aqualung plunging expat community and affluent Filipinos who could afford the athletics. Fishermans in these small towns had been transformed into tour ushers and plunging teachers. The transformed small towns earned up to 10 times more income and helped to protect the environment.

PROJECT SAN HAGON: “HITTING Many BIRDS WITH ONE STONE”

After initial appraisal and consideration of its ain capablenesss. MIA had considered change overing San Hagon into a diving small town. Petersen. nevertheless. had later shied off from a tourism-related undertaking for three grounds:

1. Competition: There were already two small towns in the part that had already achieved name acknowledgment and were much easier to entree than San Hagon. 2. Damaged merchandise: A important part of San Hagon’s coral reef had been damaged. 3. Time factor: It would take a long clip to transform San Hagon to a diving small town. Alternatively. MIA had designed a undertaking that would imply the support betterment of the small town. empower adult females and promote environmental protectionism. Petersen had remembered the old Danish stating “hit many birds with one stone” as he designed the undertaking.

Undertaking IDENTIFICATION

MIA had proposed that in return for halting blast and nitrile fishing and returning back to traditional agencies of fishing. the small town would have a grant to set up a fishing co-op. build a fish processing/cooperative edifice with all office trappingss and have a new Diesel generator. fish processing equipment. packaging equipment and preparation on how to treat and box fish.

In add-on. MIA would copyright a trade name name for the small town. have all selling communicating stuffs prepared and set up shelf infinite as the sole provider of promenades and supermarkets in Metro Manila. It was foreseen that returning back to traditional methods of angling would diminish the sum of fish that were caught. but set uping San Hagon as a direct provider to big purchasers would earn top monetary values and well increase income and countervail any losingss.

MIA’s undertaking intended to stress the importance of fish as a healthy nutrient. and highlight fishing as a generator of employment and income and as a agency to protect the environment ( see Exhibit 3 ) .

PROJECT IMPACT ASSESSMENT

Economic Impact: The concern theoretical account would let families to increase their income from $ 1 to $ 4 per twenty-four hours. Fish that was non in demand by the co-op could be used for family ingestion or sold/bartered/dried.

Social Impact: Women would go a portion of the work force and earn wages for the first clip in their lives and have disposable income. The excess income would besides assist adult females go more independent. Environmental Impact: The destructive blast and nitrile fishing methods would discontinue. This would hold the devastation of the coral reef and assist increase fish stocks. Fishermans would go environmental environmentalists and advance the construct of sustainability.

Undertaking PREPARATION

A knowing and experient squad was assembled to pull off project San Hagon. Ricardo Perez. age 65. was hired to head the local squad. aid with local governments and overcome linguistic communication barriers. Perez had worked as a selling manager for the San Miguel Company. a big Philippine pudding stone with a focal point on the nutrient and drink industry. who were the shapers of the celebrated “San Mig” beer. Perez had been confer withing with small- to mid-sized Filipino companies of all time since he retired at age 60. MIA besides planned to trust on its extended database and intranet to portion cognition and accomplish maximal engagement in the undertaking.

Any MIA employee. regardless of rank. experience and location. could notice on undertakings online. Petersen posted a Gantt chart and bucked up inquiries and counsel from his equals ( see Exhibit 4 ) . The lone limitation placed on the undertaking by MIA was that MIA could non prosecute in direct or indirect payments harmonizing to its by-laws.

Three-year fiscal projections for the San Hagon Fishing Cooperative ( SHFC ) had shown that the undertaking would do a little net income in twelvemonth one and so recognize its full potency in twelvemonth two and twelvemonth three once the acquisition curve restraints had been overcome ( see Exhibit 5 ) .

Undertaking APPROVAL

MIA Philippines had completed undertaking readyings and gotten project blessing and support from MIA central office. The undertaking was a first for MIA. as the NGO normally focused more on gender and instruction undertakings.

Perez and his squad had prepared the application for local blessing and had submitted the application to the local Fisheries and Aquatic Resources Management Council ( FARMC ) in San Jose for blessing. The FARMC was the policymaking organic structure for the piscaries and aquatic resources of the Philippines. The vetting procedure by the local FARMC had been completed after two months. after legion on-site meetings and presentations. Petersen had been frustrated at the velocity of the blessing procedure and had directed Perez to mediate often. Petersen had thought to himself. “We are widening a grant and reassigning cognition and still there is all this slow-moving bureaucratism to cover with. ”

Concurrently with the undertaking license applications. MIA had conducted one month of gimmick research in San Hagon to find the measure of fish caught by the fishermen. The study had revealed that it would be possible to catch on mean 1. 250 kgs per twenty-four hours ( 2. 750 lbs per twenty-four hours ) of premier quality fish for processing.

PROJECT SAN HAGON VALUE CHAIN

MIA had undertaken a value concatenation analysis of the undertaking procedure and assessed how the analysis could be used to better the undertaking public presentation ( see Exhibit 6 ) . Interrupting down the cost construction had further revealed that the cost construction was typically top-loaded by ingoing logistics and that the major outgo was fuel ( see Exhibit 7 ) .

Undertaking START-UP

Petersen had felt that the slow application procedure had cost MIA excessively much clip and he had decided to make things the “Danish way” at the undertaking execution stage. transfusing tight controls. frequent meetings and clip direction to rush up the undertaking.

MIA had concluded that the cardinal success factors were to:
Supply grants to get new assets.
Transportation cognition and train stakeholders in geting and keeping new capablenesss. Increase the value concatenation part of San Hagon villagers. Package and transport a differentiated merchandise to urban centres where there would be demand for the merchandise.

Two squads were formed and the work was divided up as follows: Team One: Merchandise development and packaging
Team Two: Transportation system. distribution. and advertisement and publicity

Product Development and Packaging

Tuna. shrimps. lobsters. groupers and pediculosis pubiss were chosen as the merchandise types that would be most in demand in Manila. Focus was to be placed on tuna and grouper fish. the two favourite types of fish in the Philippines.

Research had determined that the demand in Manila for chilled. packaged fish filets was similar to demand in American/European urban centres. The merchandise appealed to the “A” income degree: upwards nomadic. health-conscious clients that had clip restraints. Concurrently the squad had researched basic packaging machinery that could be operated and maintained under inauspicious climatic conditions with easiness by the fishermen. The packaging machinery. along with unstained steel fish processing work Stationss and other equipment. was purchased by MIA. transported and set up in San Hagon.

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Transportation system. Distribution. and Advertising and Promotion

A little refrigerated truck was leased for a twelvemonth along with a driver to transport the gimmick from San Hagon to Metro Manila. It was planned that the co-op would bring forth adequate hard currency to buy the truck in due clip and that a San Hagon villager would be employed to replace the hired driver in the close hereafter. The squad had come up with the trade name name “ISSAGA. ” which in the local Tagalog idiom was short for “Isda Sakdal Gawad” or most-prized fish. “ISSAGA” had been registered as a trade name name. art work had been designed and packaging stuffs and labels were printed.

Petersen had personally helped with the selling agreements. and the venerated HUI promenades and supermarkets in Manila had agreed to back up the undertaking and supply free shelf infinite. Petersen had met William Hui. a taking man of affairs of Chinese decent. at a societal map at the Danish embassy. Geting shelf infinite in a Manila supermarket was in itself a great effort. as geting retail infinite in Philippine supermarkets was hard. clip devouring and expensive.

HUI promenades had besides agreed to advance ISSAGA branded fish merchandises at points of sale. Hui. Perez and countless others had called in favours. and Manila Television Stationss. newspapers and magazines had agreed to back up the undertaking and showcase their corporate societal citizenship by supplying free pubic dealingss. The undertaking would streamline the distribution rhythm and increase net income borders for both provider and purchaser ( see Exhibit 8 ) .

With most of the work at the lower terminal of the distribution concatenation completed. the focal point had been shifted to the top terminal and MIA had directed the fishermen of San Hagon to organize a fishing co-op. MIA and other stakeholders needed a formal opposite number they could turn to and it was hoped that being portion of a formal organisation would transfuse a sense of ownership and consequence in committedness and duty on the portion of the villagers.

SAN HAGON FISHING COOPERATIVE

Chairman Buenaventura was chosen as the president of the freshly formed SHFC. His two sons-in-law were appointed as director and as financial officer of the co-op. severally. A basic contract was signed between MIA and the SHFC picturing the range of the undertaking. enrollment of fixed assets and depreciation programming.

MIA insisted from the oncoming that all fishermen join the fishing co-op. One hundred per cent rank to the fishing co-op was of import because: 1. It was necessary to aggregate the gimmick of the small town to do it executable for the gimmick to be sold to the purchaser HUI promenades.

2. MIA wanted all stakeholders in San Hagon to profit from the poverty-alleviation undertaking.

STAKEHOLDER CONFLICT

MIA had ab initio donated $ 5. 000 to the co-op. and a basic edifice big plenty to house the fish processing and packaging line. with cement walls and a corrugated steel roof. was rapidly constructed. The edifice work was done by the villagers. who received a pay in return for their labour.

The first dissension had occurred when Buenaventura had insisted that he have $ 150 and the other concerted employees receive monthly wages of $ 100 as wage for the work that they would supply. MIA had ab initio balked at the salary demand and had threatened to name off the undertaking. Buenaventura had. nevertheless. remained relentless and Petersen. after two hebdomads of deliberations and absolute inactiveness on the portion of the villagers. had directed Perez to negociate the demand in an effort to deliver the undertaking. An understanding for $ 100 a month for Buenaventura and $ 65 for his sons-in-law had been therefore reached to be paid for the continuance of a twelvemonth.

The following struggle had arisen when Buenaventura did non desire to to the full unwrap how much it had cost to construct the concerted edifice. MIA had later learnt that Buenaventura had thrown a “fiesta. ” a Filipino jubilation that included free drinks and “lechon” porc joint on wood coal. to observe the new edifice. At this phase. Petersen had started to inquire if he had made a serious error in taking San Hagon as the pilot undertaking and Perez as undertaking director.

Afraid of the effects to his calling if he terminated the undertaking. he had decided to force on even if it meant accepting extra demands. Demands for aid were frequent. Villages neighbouring San Hagon had heard about the undertaking and the MIA office received legion phone calls daily inquiring MIA to widen its aid to other small towns. MIA had been busy turning down the enquiries. mentioning limited resources. Time was a resource of which Petersen did non hold plentifulness.

He was frequently frustrated at the velocity at which things happened in the Philippines. Project director Perez seemed competent plenty and had huge sums of experience and was technically adapt. He couldn’t decide whether the slow advancement was a consequence of Perez’s velocity or the inability or involuntariness of the San Hagon concerted council to travel rapidly things along. His defeat increased. as with each go throughing month he was non able to describe advancement to MIA central offices.

Mindful of his standing at MIA Denmark and in his pursuit to rush up the
undertaking. Petersen had started to follow a more confrontational attack. particularly at the hebdomadal undertaking coordination meetings with Perez and the remainder of the squad. Perez ever reported how much advancement they were doing. Perez and the remainder of the squad continuously assured Petersen that this was how concern was conducted in the Philippines. Petersen was tired of hearing this. The other nerve-racking job was that the word “no” did non be in the Filipino linguistic communication.

It was considered rude to state “no” and therefore every inquiry and every enquiry got a positive reply. There were. nevertheless. different sunglassess of “yes. ” with some significance “no. ” some significance “maybe” and some which truly meant “yes. ” It had taken Petersen more than six months to calculate this out. He instructed all his employees non to experience abashed to state “no” to him.

But that had merely resulted in farther abashing his employees. He sometimes felt that he was acquiring nowhere. With merely the one active undertaking to demo for. Petersen needed to rapidly finish this undertaking and get down new undertakings if he was to stand a opportunity of acquiring promoted and presuming greater duties in a bigger MIA office.

Working at MIA had begun to experience like a tug-of-war between himself and the Filipino staff. with Petersen seeking to accelerate the gait and the staff decelerating him down at every bend. Petersen wished that Perez would take more inaugural and utilize his decision-making power instead than run even the smallest determinations by him foremost. At times he had begun to surmise that Perez was decelerating down the undertaking deliberately to maintain having his salary thirster.

Wages in the Philippines were low compared to those in Europe or America. particularly in retirement. and after doing $ 1. 000 to $ 1. 500 as a selling manager in San Miguel. Perez was merely doing $ 300 in retirement. The $ 700 salary MIA was paying him was rather a encouragement to his income.

Perez had felt that he desperately needed to finish the undertaking. He had chosen to go on working good into retirement. as his pension payment was non sufficient plenty to keep his life style and set his youngest girl through college.

Perez had completed his unmarried man of humanistic disciplines degree at the University of the Philippines. and had obtained a esteemed certification for nutrient service direction at Cornell University. New York. United States. He had interviewed with MIA and accepted its occupation offer. because foreign NGOs normally paid better than their Filipino opposite numbers and. more significantly. on clip.

Before retirement. Perez had managed more than 175 employees. Even though the San Hagon undertaking was basic compared to what he was accustomed to managing and even though the MIA state director was immature plenty to be his boy. the wage was generous. Perez had seen himself as adviser and wise man to the immature Petersen and had tried to demo him the manner concern was done in the Philippines. He had interceded often to hasten the permission procedure and facilitated MIA’s traffics with the San Hagon angling co-op.

True to Philippine civilization. Perez had ever shown the extreme regard for Petersen. particularly in public. and portrayed him as the almighty leader of MIA. Having immature Petersen do all determinations had been a portion of his show of regard and respect to Petersen’s authorization. Young Petersen had. nevertheless. been hard to cover with. The whole undertaking had taken an unpleasant bend. as Petersen had gotten highly confrontational at meetings. Perez had heard about the troubles of working with Americans and Europeans.

Filipinos did non like confrontation. “Pakikisama” ( group trueness ) and the importance of keeping societal harmoniousness were a portion of his direction manner and dissension or interpersonal tenseness of any kind at the workplace was highly unsavory for Perez. Petersen had caused him “hiya” ( embarrassment ) in forepart of the remainder of the squad. His squad. while remaining silent during meetings. had approached him afterwards and empathized with him.

Perez had felt elated when the planning phase was over and the undertaking had entered the execution phase. which was more in his comfort zone. Perez had designed the new product-to-market procedure and ensured that he would pass most of his clip out of the office and avoiding Petersen.

New PRODUCT-TO-MARKET Procedure
Boning. Filleting and Boxing

In order to add value to the merchandise and to countervail the cost of cleansing and fileting the fish at a higher cost by HUI employees. it was planned that the deboning. filleting and packaging would be done in San Hagon. The co-op had called upon the adult females of the small town who were experienced in fixing fish to assist with treating the gimmick. It was planned that adult females in the small town interested in the chance would be paid in return for the measure of fish they processed.

If demand for the work outweighed supply. there would be a waiting list and all interested adult females would acquire their opportunity to gain excess income when their bend came. Once deboned and filleted. the fish would be separately packaged in certain cellophane packages and packed in 40 kg containers.

The SHFC encouraged all fishermen to convey in their gimmick to the concerted early in the forenoon. where the gimmick was assessed and weighed harmonizing to the merchandise demands of HUI promenades for the hebdomad. Each fisherman had an history at the SHFC and his history was credited harmonizing to the day-to-day gimmick brought in. The fishermen were free to make whatever they wanted with the gimmick non purchased by HUI promenades.

HUI promenades were merely interested in selling the finest quality fish in two of their sole high-end promenades. Second- and third-tier fish were delivered to the staying five mid-market HUI promenades in Metro Manila. As a differentiating factor. the undertaking called for the merchandise to be sold chilled. Upscale clients in Manila preferred chilled and filleted fish because they felt it was safer than fresh fish and easier to fix.

Storage and Conveyance

Taking into history the debatable supply of electricity and high cost of set uping a cold concatenation. which would hold required a significant cold storage installation investing in the small town. and in line with supplying sustainable low engineering solutions. it was planned that the fish would be stored in a refrigerated truck which operated its chilling unit 24 hours per twenty-four hours and would be used as both a conveyance and storage installation. The refrigerated truck would do day-to-day trips to Manila and administer the merchandise.

Gross saless and Distribution

HUI promenades had insisted that the allocated shelves be stocked by the San Hagon co-op. The driver would do bringings and stock the shelves of seven different HUI promenades in Manila. Fish bringings would be made on a consignment footing and payments based on existent gross revenues were to be made to San Hagon on a hebdomadal footing. The theoretical account had some jobs. as payment by HUI promenades was delayed.

HUI MALLS

William Hui had been one of the facilitators of the undertaking. By supplying free shelf infinite for San Hagon. he had received free public dealingss and showcased the corporate societal duty of his company. HUI promenades had financially benefited every bit good. having good-quality filleted fish at deal monetary values without holding to put in puting up or pull offing procurance and processing operations. Hui’s concern understanding had become even more evident when he was approached by a reputable Nipponese purchaser who had late purchased ISSAGA fish at one of his promenades and had inquired about selling the merchandise in Japan.

IMPLEMENTATION PROBLEMS

Under the careful counsel of Perez. the fishermen had conducted the first limited packaging trial runs. The procedure was fraught with jobs at first. Boning and fileting fish commercially was really different from fileting for self-consumption. At first the SHFC had wanted to box all sorts of fish. regardless of size and quality. HUI promenades had rejected at least 25 per cent of the initial cargos before the SHFC had bowed to the quality criterions set Forth by HUI promenades. Spillage and spoilage was another job. About 15 per cent of green goods was lost in this manner. This had been due to refrigeration jobs and the freshness of the fish.

Fish was a sensitive merchandise and had a really short shelf life unless stored decently and it had become clear that non all fishermen brought in their gimmick in the forenoon. Sometimes the truck was late in picking up the day’s gimmick. which led to late bringings.

Aggregating adequate supply to do the concern tally productively was an issue at first. Even though all fishermen had joined the co-op. supply jobs due to adverse conditions conditions and sometimes due to the complacence of the fishermen had resulted in the shipment truck doing a loss about 50 per cent of the clip.

Once the merchandise was on the supermarket shelf nevertheless. it sold good. “But the procedure of acquiring the merchandise on the shelf is inefficient to such a grade that the co-op is doing a loss. ” Petersen had thought when carry oning an interim undertaking rating.

INTERIM PROJECT EVALUATION

Perez had put his huge experience to good usage and had intervened to press out the jobs. The logistic job was solved by engaging two new drivers from the small town to adult male the truck. The initial drivers’ contract was terminated. MIA purchased and donated a second-hand refrigerated truck organic structure with a powerful diesel-operated air conditioner. which was used to hive away the day-to-day
gimmick if the truck was non available to pick up or present the merchandise. Perez’s intercessions had worked and the net incomes had started to ooze in.

PROJECT COMPLETION REPORT

After a full twelvemonth of careful examination to do certain the undertaking did non endure from continuity jobs. Petersen had sent in his undertaking rating study to MIA Denmark and had lauded the undertaking as a great success.

The consequences of the undertaking had started to demo in San Hagon. as most villagers had upgraded their huts to cement-walled. galvanized. Fe sheet roofed edifices. Most places had upgraded their Televisions and purchased karaoke participants to supplement their place amusement. The most seeable betterment was the figure of banka boats that were now outfitted with engines.

FISH DELIVERIES CEASE

MIA’s state manager. Petersen. was fixing to reassign to MIA Africa when the phone call from HUI promenades had come in informing MIA of the disconnected arrest in fish bringings more than a month ago and inquiring MIA for its aid. HUI promenades had inferred that they were ready to negociate with the SHFC to better concern footings if demand be.

Petersen had unwillingly agreed to direct a investigative mission to understand what had gone incorrect and hired McKenzie to head the investigative squad. as the initial San Hagon undertaking squad had already been disbanded.

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Exhibit 1
MAP OF THE PHILIPPINES

Beginning:
hypertext transfer protocol: //www. Central Intelligence Agency. gov/library/publications/the-world-factbook/geos/rp. hypertext markup language. accessed October 28. 2008.

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9B09M016

Exhibit 2
PHILIPPINE SAVINGS AND INVESTMENT AS SHARE OF GDP 1996-2001 AVERAGE ( % ) Savings/GDP
40. 1
33. 5
45. 2
22. 9
26. 1
19. 7
32. 5
18. 9
26. 9
12. 5

China. People’s Republic of
Korea
Malaya
India
Taiwan
Bangladesh
Siam
Philippines
Dutch east indies
Pakistan

Investment/GDP
37. 8
31. 8
33. 4
24
23. 7
21. 5
28
20. 4
23. 2
17. 1

Beginning: World Wide Web. adb. org/Documents/Books/ADO/2002/Update/ado2002update. pdf. accessed November 18. 2008.

Exhibit 3
PROJECT SAN HAGON FACT SHEET
Aim
1 ) Increase $ 1/day income to $ 4
2 ) Integrate more adult females into the work force
3 ) Promote environment preservation
Undertaking COST FORECAST
Procurement
Construction
Training
Wages
MIA local consultants/month
SHFC direction salaries/month

$
18. 000
5. 000
1. 500
1. 500
230

OPERATIONAL Cost
Truck rental/month
Truck driver salary/month
SHFC workers’ salaries/month
Fuel/month
Boxing material/month

850
375
1. 000
3. 500
250

ADDITIONAL COSTS
Procurement $ 4. 000
Additional driver salary/month
Extra fuel/month

4. 000
375
1. 250

Execution
Mr. Petersen. MIA manager. The Philippines
Mr. Perez. undertaking director. San Hagon

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Exhibit 4
PROJECT SAN HAGON GANTT CHART

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Exhibit 5
PROJECT SAN HAGON THREE YEAR FINANCIAL PROJECTIONS

Year 1
255. 200
236. 880
12. 600
249. 480
5. 720

Gross
Cost of goods sold
Fixed cost
Sum Cost
INCOME BEFORE TAXES
Note: All sums in US $ at $ 1=56 Filipino pesos
Fiscal twelvemonth ends December 31

Exhibit 6

VALUE CHAIN ANALYSIS

Year 2
382. 800
236. 880
12. 600
249. 480
133. 320

Year 3
382. 800
236. 880
12. 600
249. 480
133. 320

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Exhibit 7

$ ( 000 )

VALUE CHAIN COST STRUCTURE

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Exhibit 8
DISTRIBUTION CYCLE ANALYSIS