I. Executive Summary

Solid agricultural company is a household owned company that has been in being since 1960. It operates piggery farms in Antipolo. Rizal and Meycauayan. Bulacan. It has grown cautiously due to limited household resources. The household has non resorted to. utilizing borrowed financess. The company was antecedently chiefly managed by Mr. Henry Koh. But in the recent old ages. his boy Mr. Manuel Koh helped in the direction of the company. Mr. Manuel Koh saw an chance for enlargement.

The enlargement is projected to increase gross and diminish the cost of gross revenues. This nevertheless requires significant sum of capital that can non be provided by the company entirely. Extra resources are necessary. Mr. Bince and Mr. Antonio are interested in giving fiscal investing to the company to finance enlargement in exchange for a direction place. Mr. Bince. a CPA. would inquire to be involved with accounting and the detention financess. Mr. Antonio will desire to take on the selling map.

II. VIEWPOINT
Mr. Manuel Koh

III. AREAS OF CONSIDERATION

*STRENGTHS
1. Koh’s command in agricultural development
2. Family owned company. Managed by Manuel who completed his grade in General Management at well-known Manila University
3. Debt free. the proprietor does non fall back to borrowed financess.

*WEAKNESSES
1. Adequate production of supply demands of the hog closer farms in Antipolo and Bulacan
2. Limited resources. make non fall back in utilizing borrowed financess.
3. Low Return on Investment ( 1. 4 % ) and Net Net income Margin ( 0. 62 % )
4. Long turning period of pigs.
5. Large sum of working capital particularly on cost of provenders

*OPPORTUNITIES
1. Proposed Novaliches farm may house the disposal operations of Meycauayan farm. increasing the production of the latter.
2. Feed factory in Novaliches can bring forth the provenders for the expanded demands of the Antipolo and Meycauayan farms.
3. Novaliches is near to major markets of manilla.
4. Increased population in Metro Manila and strong buying power additions demand.
5. Expansion in expected to increase grosss and lessening cost of gross revenues.

*THREATS
1. High cost of provenders and monetary value control on porc.
2. Novaliches farm do non vouch success.
3. Competitive markets.

IV. STATEMENT OF THE PROBLEM

The company is sing enlargement. However. they are non doing adequate net income to finance enlargement.

V. STATEMENT OF OBJECTIVES

The aim of this analysis is to able to place the best possible option for the company to be able to happen resources to finance enlargement within 2 months or every bit shortly as possible before the marketer went to US.

VI. ALTERNATIVE COURSE OF ACTIONS

ACA # 1
To accept the offer and take Messrs. Bince and Antonio as co-owners of Solid Agricultural Company.

Advantages:
1. They can be able to put the necessary sum to prosecute with the enlargement.
2. Messrs. Bince and Antonio can besides supply expertness in agribusiness direction

Disadvantage:
1. Sharing of net income
2. From exclusive proprietary to partnership

ACA # 2
To organize a new company with Messrs. Bince and Antonio to run merely the Novaliches undertaking.

Advantages:
1. They can be able to put the necessary sum to prosecute with the enlargement.
2. Messrs. Bince and Antonio can besides supply expertness in agribusiness direction.

Disadvantage:
1. Sharing of net income.
2. Difficult in doing concluding determinations.

ACA # 3
To see borrowing from the bank.

Advantages:
1. Helps in funding enlargement.
2. Direct use of money.

Disadvantage:
1. Incurred involvement disbursal
2. Take as an extra liabilities.

ACA # 4
Selling of some extra and idle assets.

Advantages:
1. Get rid of the assets that are non of import.
2. Extra fiscal resources or capital.

Disadvantage:
1. Less machineries and runing assets.
2. Reduced value or possible loss on realisation.

ACA # 5
Contract between the marketer of the belongings and Manuel Koh to take it as Trade recognition.

Advantages:
1. Buy now. Wage subsequently. Ability to purchase on recognition.
2. It is low cost – trade creditors don’t charge involvement on the sum outstanding ( unless payment is delayed good beyond the colony day of the month )

Disadvantage:
1. Take as an extra liabilities.
2. If the belongings do non vouch success. it will hold possible bad debts.

VII. FINAL Decision
To organize a new company with Messrs. Bince and Antonio to run merely the Novaliches undertaking. Messrs Bince and Antonio will take charge in fiscal resources for purchasing the site in Novaliches.

VIII. DETAILED Plan OF ACTION

List of Activities

Person/s Involved

Timeframe
1. Create partnership understanding among Messrs Bince. Antonio and Manuel Koh

Mr. Manuel Koh

Within 1 hebdomad
( every bit shortly as possible )
2. Communicate with the marketer for settling the belongings understanding Messrs Bince. Antonio and Manuel Koh

1 hebdomad

3. Buying the production site.
Messrs Bince. Antonio and Manuel Koh

1 month
4. Undertaking or operation planning
Messrs Bince. Antonio and Manuel Koh

1 month
5. Implementing the program
Messrs Bince. Antonio and Manuel Koh
Starts within 1 month until the contract ends or capable for reclamation.