Strategic management plan for Marikina Orchidarium quality orchids at reasonable price
Date of Publication
1996
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
This is a paper about the formulation of a strategic management plan for Marikina Orchidarium. Marikina Orchidarium is a firm engaged in the wholesale and retail selling of imported and own grown plants. Presently, it has 3 branches and a 4000 sqm lot orchid nursery where it plants its orchids.
The framework of strategy formulation that was used in this paper was based on the matching of the industry's opportunities and threats with the firm's strengths and weakness in order to attain a given objective. The strategy formulated was aligned to the firm's mission and vision in order for the firm to move forward in a defined direction and be competitive to the industry were it belongs.
The first part of the paper tried to identify and analyze the industry where Marikina Orchidarium is playing. The five forces model of Michael Porter was used as the basis for industry analysis. Marikina Orchidarium was identified to belong to the Botanical Ornamentation industry. The five force model shows that botanical ornamentation industry is a fragmented industry as characterized by: a) Low over-all entry barriers, b) absence of economics of scale, c) high inventory cost and erratic sales fluctuation. d) no advantage of size in dealing with buyers and suppliers, and e) large number of small and medium sized firms.
The second part of the paper identifies the strengths and weaknesses of Marikina Orchidarium. The value chain of Marikina Orchidarium and its three years financial performance was used as the basis in identifying its strengths and weaknesses. The strength of Marikina Orchidarium was highlighted by its l S yrs experience in the business, its tie up with an orchid breeder in Bangkok, its 4000 sqm lot orchid nursery, pool of suppliers and being able to supply quality imported orchids on a regular basis.
With the firm's mission, vision and objectives, a strategy for Marikina Orchidarium was formulated based on its strengths and weaknesses that will address the opportunities and threats its industry offers.
Differentiation generic strategy was used to address the fragmented botanical ornamentation industry of Marikina Orchidarium. The main strategy was to maximize its profits by optimizing the mix of products being sold by Marikina Orchidarium. Mix of products refers to the percent of sales contribution of own grown and imported orchids. At present, the sales contribution of own grown and imported orchids is 12% and 88% respectively, while the profit margins of own grown and imported orchids is 75% and 20% respectively. By increasing the sales contribution of own grown orchids, Marikina Orchidarium can increase its net profit without increasing its sales volume. The 12% sales contribution of own grown orchids was not due to the lack of demand but because of the lack of supply due to limited orchid nursery space. Expansion of orchid nursery operation was formulated to address the required increase in sales contribution of own grown orchids.
The quality of own grown orchids is comparable to imported full grown orchids. Marikina Orchidarium grows and propagates orchids that were breed in Bankok. Hawaii or Malaysia. Thus, the quality of own grown orchids is almost the same with full grown imported orchids. Customers arc looking for new breeds of plant and not for an imported plant. Marikina Orchidarium has the skill and financial capabilities to handle the strategy. Based on sales projection after expansion, Marikina Orchidarium can recover its investment within 3 years and double its 1995 profit level after 5 yrs.
Abstract Format
html
Language
English
Format
Accession Number
OCE0379
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
67 numb. leaves
Upload Full Text
wf_no
Recommended Citation
Javarate, J. L. (1996). Strategic management plan for Marikina Orchidarium quality orchids at reasonable price. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/2581
