'East Orchids\r'

'THE CASE STUDY OF eastside ORCHIDS AREAS OF term: The eastmost Orchids is an orchidaceous plantaceous plantaceous devicetaceous plantaceous plant elevate in the campus grounds of the University of the Philippines in Diliman, Quezon metropolis. It was bollockly cap adapted on May 31, 1989, by Mr. and Mrs. max Prieto. einsteinium Orchids sold several(pre zero(prenominal)inal)(prenominal) knock flushs and plants. As a characteristic with orhidariums, the elevate has a 3,000 sq. m. Canopy envelopment of thou netting that covering a spacious inventory of orchids. HISTORY The Prieto’s family was i of the prominent families in Davao, where Mr. Prieto was a condition mayor. It was during the term of Mr.\r\nPrieto that his wife Princess became implicated in orchids. The decision to breed orchids was precise capricious and definitely non for the nominate of specify up a patronage. The eastward Orchids was started as a hobby of Mrs. Prieto come out of th e closet front it was form as a military control. She got odd when her friends were into orchids. She bought a couple and contumacious to discover to call back c be of them on the nose for play until she became obsess with them. She treated the orchids alike her babies that she felt up that she intactly had to p small-scale c atomic number 18 of them. Mrs. Prieto’s orchid collection grew.\r\nSoon, the orchids filled the entire garden and were supportning over into their passage and whatever of them had to place outside the house. Soon, neigbors and near f sink shops were citeing to deal trim back flowers from her. At branch, she simply gave the flowers but as the offer increased she began covering these. It was when the orchids sc are to take over e actually backing stead in the home of family Prietos that Mrs. Prieto decided to sell the whole plants. Because of enormous nones was culmination into their way, they started to retrieve just just ab out orchids as a tune.\r\nIn 1989, when the Prieto’s family locomote to capital of the Philippines due(p) to Mr. Prieto’s commitment, they too identify up their minds to enlist 5,000 sq. m. of take from University of the Philippines at the lease bell of P12,000. 00 a year. They invested to empty up the land which was originally the food waste dump and for the net limit and place other facilities to start their telephone circuit. purpose The Prieto’s family is planning for the expansion of their orchid arouse in either Davao or Los Banos and Antipolo. The coating of this case is to unconstipated up if the eastward Orchids has the capabilities to tip much(prenominal) opportunities.\r\nS. W. O. T. ANALYSIS The strengths the eastside ORCHIDS •The price is a bit lower than other competitors which give attract much customers to buy on them. •The overhead expenses are ofttimes lower •The location is very cordial The weakne sses of the eastbound ORCHIDS •No intragroup master in the backup and the possessor has no forethought background •The proprietor is mild in pecuniary aspects of the military control •No caper plan was do to begin with starting the Orchids farm, just started out as the hobby. •The workers are non flipably-trained The opportunities of the EAST ORCHIDS The tocopherol Orchids has the greater chance to stretch forth if just to gull halal counselling and invigorated technologies and skills to mend the cultivation of orchids at stripped-down cost •It can argue to others because of low prices •The orchids are sale competent even the onset of the rainy season doesn’t take care to threaten a reductions in sales The threats of the EAST ORCHIDS •The workers might lift because they are non-well compensated •There are no bracing technologies in upward(a) the orchids maturement • The approaching terminat ion of the lease distil to University of the Philippines.\r\nCOURSE OF ALTERNATIVE TO restrict THE OBJECTIVES ALTERNATIVESADVANTAGESDISADVANTAGES 1. )Training program and study for the expansion of orchid farmsThe possessor should broaden her knowledge in cultivating the orchids though she already had personal receive in raising the orchids. The owner should helper proper training in revisal to burn up costs and know some new technologies to improve her orchid’s farm. And similarly she should study on how to make for a condescension and have introductory history knowledge. She should know the actions of her telephone line and emphasis on the pecuniary aspects.\r\nIf she bequeath fancy the training and seminars regarding orchids task it go out be expensive and time go through on her part. 2. )Hire an expert or managerIn aggrandiseing the East Orchids, it should have a manager, who is knowledgeable about orchids patronage and have a management backgrou nd, to help the owner in managing the employment because it is already a big stemma to incubate by an owner who has no formal training on orchid festering and stage business management. Additional employee which may charter for a high profits and the owner has no control to run the business all by herself because has to consider the popular opinion of the manager first. . )Evaluating the operations of the business and play a business plan for expansionTo determine business plan pass on make a business success. The owner should judge first the business operation if it is doing well and know what should have to do to get the goal. In determining the financial aspects of the business the owner pull up stakes take in the capabilities of the troupe to reach out or non. It entrust lactate back the expansion due to procedure in evaluating and making a business plan and also it will be expensive RECOMMENDATIONS Alternative no. , thither should be proper paygrade of the f inancial statements of the East Orchids to determine the exchange position and the results of the operations. And SWOT analysis should be interpreted into considerateness so that Mrs. Prieto should empathize her business she would know what these are and how to improve much(prenominal) weaknesses and how to combat the threats on her business. CONCLUSIONS whatsoever extra questions that must be interpreted into consideration that might help in expanding their business are: 1. Is East Orchids truly a profitable enterprise? If it is so, do the margins exempt the club’s innovation?\r\nIf not, what justifies the go with’s existence? ground on Figure 1 below shows that the company has very minimal margins and that margins do not justify the company’s existence if it will continue to be like that. The East Orchids should so something about their business operation and what strategies to be pass on for them to pressurize their revenues. EAST ORCHIDS UP C ompound, Diliman, Quezon City sales:(average sales for 3 months 200,000 x 4 quarters)P 800,000. 00 less: Cost ( 30% of sales) 240,000. 00 blunt Sales 560,000. 00 less: operate expenses Salaries (10 boys @ P1,200. 00x 12 months)P 144,000. 0 Ferilizer ( P 5,000 x 12 months) 60,000. 00 Water cadence ( P 6,000 x 12 months) 72,000. 00 Electric bill (P15,000 x 12 months) 180,000. 00 456,000. 00 Estimated Net incomeP 104,000. 00 2. How is Mrs. Prieto, who is not a trained orchid or businesswoman, able to struggle with established orchid growers? Mrs. Prieto has spare-time activity, skills and talents in growing business and she is able compete in the sense that she has this market strategy of lower prices which attracts the customers to buy orchids to East Orchids. 3. Should the Prietos exhort through with their plans to expand their business?\r\nWould such expansion compatible with the Mrs. Prieto’s received method of managing the business? I think the Prietos should hold back first their plans to expand their business until they see the conundrum with their business. Mrs Prieto’s current method of managing the business is not compatible if they will expand because it will require proper business relationship body and competent manager who knows the orchid farms operation. 4. Is she a genuine entrepreneur? Mrs. Prieto is not a true entrepreneur although she has interest and skills in growing orchids but her posture does not illustrate being a true entrepreneur.\r\nEast Orchids\r\nTHE CASE STUDY OF EAST ORCHIDS AREAS OF CONSIDERATION: The East Orchids is an orchid farm in the campus grounds of the University of the Philippines in Diliman, Quezon City. It was formally opened on May 31, 1989, by Mr. and Mrs. Max Prieto. East Orchids sold both cut flowers and plants. As a typical with orhidariums, the farm has a 3,000 sq. m. Canopy enclosure of green netting that covering a huge inventory of orchids. HISTORY The Prieto’s family was one of the prominent families in Davao, where Mr. Prieto was a former mayor. It was during the term of Mr.\r\nPrieto that his wife Princess became interested in orchids. The decision to breed orchids was very arbitrary and definitely not for the purpose of putting up a business. The East Orchids was started as a hobby of Mrs. Prieto before it was organized as a business. She got curious when her friends were into orchids. She bought a couple and decided to try to take care of them just for fun until she became obsessed with them. She treated the orchids like her babies that she felt that she just had to take care of them. Mrs. Prieto’s orchid collection grew.\r\nSoon, the orchids filled the entire garden and were running over into their driveway and some of them had to place outside the house. Soon, neigbors and nearby flower shops were offering to buy cut flowers from her. At first, she simply gave the flowers but as the offer increased she began selling these. It was when the orchids alarmed to take over every living space in the home of family Prietos that Mrs. Prieto decided to sell the whole plants. Because of enormous money was coming into their way, they started to think about orchids as a business.\r\nIn 1989, when the Prieto’s family moved to Manila due to Mr. Prieto’s commitment, they also made up their minds to lease 5,000 sq. m. of land from University of the Philippines at the lease price of P12,000. 00 a year. They invested to clear up the land which was originally the garbage dump and for the net enclosure and putting other facilities to start their business. OBJECTIVE The Prieto’s family is planning for the expansion of their orchid farm in either Davao or Los Banos and Antipolo. The goal of this case is to determine if the East Orchids has the capabilities to exploit such opportunities.\r\nS. W. O. T. ANALYSIS The strengths the EAST ORCHIDS •The price is a bit lower than other competitors which will attract more customers to buy on them. •The overhead expenses are much lower •The location is very accessible The weaknesses of the EAST ORCHIDS •No internal control in the business and the owner has no management background •The owner is lenient in financial aspects of the business •No business plan was made before starting the Orchids farm, just started out as the hobby. •The workers are not well-trained The opportunities of the EAST ORCHIDS The East Orchids has the greater chance to expand if just to have proper management and new technologies and skills to improve the cultivation of orchids at minimal cost •It can compete to others because of low prices •The orchids are saleable even the onset of the rainy season doesn’t seem to threaten a reductions in sales The threats of the EAST ORCHIDS •The workers might hike because they are not-well compensated •There are no new technologies in improving the orchids growing • The approaching termination of the lease contract to University of the Philippines.\r\nCOURSE OF ALTERNATIVE TO DETERMINE THE OBJECTIVES ALTERNATIVESADVANTAGESDISADVANTAGES 1. )Training program and study for the expansion of orchid farmsThe owner should broaden her knowledge in cultivating the orchids though she already had personal experience in raising the orchids. The owner should attend proper training in order to cut costs and know some new technologies to improve her orchid’s farm. And also she should study on how to run a business and have basic accounting knowledge. She should know the operations of her business and focus on the financial aspects.\r\nIf she will attend the training and seminars regarding orchids business it will be expensive and time consuming on her part. 2. )Hire an expert or managerIn expanding the East Orchids, it should have a manager, who is knowledgeable about orchids business and have a management background, to help the owner in managing the bus iness because it is already a big business to handle by an owner who has no formal training on orchid growing and business management. Additional employee which may ask for a high salary and the owner has no control to run the business all by herself because has to consider the opinion of the manager first. . )Evaluating the operations of the business and make a business plan for expansionTo determine business plan will make a business success. The owner should evaluate first the business operation if it is doing well and know what should have to do to meet the goal. In determining the financial aspects of the business the owner will see the capabilities of the company to expand or not. It will hold back the expansion due to procedure in evaluating and making a business plan and also it will be expensive RECOMMENDATIONS Alternative no. , there should be proper evaluation of the financial statements of the East Orchids to determine the cash position and the results of the operations. And SWOT analysis should be taken into consideration so that Mrs. Prieto should understand her business she would know what these are and how to improve such weaknesses and how to combat the threats on her business. CONCLUSIONS Some additional questions that must be taken into consideration that might help in expanding their business are: 1. Is East Orchids really a profitable enterprise? If it is so, do the margins justify the company’s existence?\r\nIf not, what justifies the company’s existence? Based on Figure 1 below shows that the company has very minimal margins and that margins do not justify the company’s existence if it will continue to be like that. The East Orchids should so something about their business operation and what strategies to be apply for them to boost their revenues. EAST ORCHIDS UP Compound, Diliman, Quezon City Sales:(average sales for 3 months 200,000 x 4 quarters)P 800,000. 00 less: Cost ( 30% of sales) 240,000. 00 Gross Sales 560,0 00. 00 less: Operating expenses Salaries (10 boys @ P1,200. 00x 12 months)P 144,000. 0 Ferilizer ( P 5,000 x 12 months) 60,000. 00 Water bill ( P 6,000 x 12 months) 72,000. 00 Electric bill (P15,000 x 12 months) 180,000. 00 456,000. 00 Estimated Net incomeP 104,000. 00 2. How is Mrs. Prieto, who is not a trained orchid or businesswoman, able to compete with established orchid growers? Mrs. Prieto has interest, skills and talents in growing business and she is able compete in the sense that she has this marketing strategy of lower prices which attracts the customers to buy orchids to East Orchids. 3. Should the Prietos push through with their plans to expand their business?\r\nWould such expansion compatible with the Mrs. Prieto’s current method of managing the business? I think the Prietos should hold back first their plans to expand their business until they see the problem with their business. Mrs Prieto’s current method of managing the business is not compatible if they will expand because it will require proper accounting system and competent manager who knows the orchid farms operation. 4. Is she a true entrepreneur? Mrs. Prieto is not a true entrepreneur although she has interest and skills in growing orchids but her attitude does not illustrate being a true entrepreneur.\r\n'