Corporate strategy for AA Export & Import Corporation
Date of Publication
1998
Document Type
Oral Comprehensive Exam
Degree Name
Master of Business Administration
Subject Categories
Business Administration, Management, and Operations
College
Ramon V. Del Rosario College of Business
Department/Unit
Decision Sciences and Innovation
Abstract/Summary
In the early 1980s, the Philippine shrimp industry established foothold in both local and foreign markets. It was considered as one of the major dollar earners.
However, in 1989, prawn prices in the Japanese and other export markets dropped due to the following factors: 1) the oversupply of prawns in Japan brought about by the slump in the demand when the Japanese mourned the death of Emperor Hirohito and 2) the high production volume of prawns in other Asian countries like Indonesia, Thailand, Taiwan, and Vietnam.
In 1991, export of shrimps increased dramatically by 25% due to the breakthrough in the value added products that command higher price. This value added products consist of the following: nuggets, balls, patties, and etc. These products are highly salable in various Asian countries and other market such as the USA, Canada and selected European markets (UK, France, Germany, and Italy).
However, at present tropical production of shrimps and prawns is showing a decreasing trend in output over the last years. The negative trend is attributed to shortage of production caused by prawn diseases, i.e., luminous bacteria, Mondon Baculo Virus (MBV) caused by poor water management, waste disposal, and unclean environment.
Many marginal prawn growers closed shop as operation cost in pond and prawn maintenance increases tremendously. The problem is even made graver by the regional financial crisis that we are currently experiencing as financial cost in operating the businesses eaten up the already small profit margins left to the company.
AA Export and Import Corporation have the objective of making the prawn grown-out business world competitive and profitable. For 1998, the company will attain the following financial objectives: 1) a Gross Profit margin of 70.31% which is 18.07% growth from 1997 level of 59.55% and an Operating Profit margin of 45.57% which is 54.63% growth from 1997 of 29.475%.
To attain these objectives, in 1998 AA will sell $ 27.676 million which is a 42.41% improvement from that of the previous year. Average price of the commodity will be set at $13.37 per kilogram and the firm will provide $ 1.994 million budget for its marketing expenditures allocated for selling and promotion.
To support the previously stated objectives, the firm will produce 2, 070 metric tons of shrimps and prawns. Furthermore, AA will improve its production operation to attain an ideal survival rate of 65% and a feed conversion ratio (FCR) of 1.76.
The conducting section provided the recommended strategies that will help the company reach its objectives: strategies concerning the two major shrimp markets, namely, the Japanese and the US market (target market, product offering, packaging, distribution channels, and pricing) strategies that concern technology improvements (pond relocation and shift from intensive to semi-intensive prawn farming) strategies that focus on the production of other aqua products and lastly, strategies on manpower training and development.
Abstract Format
html
Language
English
Format
Accession Number
OCE0146
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
110 leaves ; 28 cm.
Recommended Citation
Morales, J. C. (1998). Corporate strategy for AA Export & Import Corporation. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/2204
