Confidential

SouthPhil Coffee Enterprise is a family-owned micro-enterprise involved in trading and processing of raw and roasted coffee products. Based in General Santos City, the company sources its raw materials, namely Arabica, Robusta and Civet Coffee, mainly from the B'laan coffee growers in Mt. Matutum, Polomlok. The livelihood component that the company contributes to these coffee farmers, as well as its fair-trade practices, resulted to recognition and awards from the local government unit and several government agencies. Although there are evidences of growth in the company in terms of revenue and net income, the owner is aware that there are efficiency and management issues that need to be addressed for the company to attain its full potential. Thus, factors from the external and internal environment are analysed to understand those that contribute in the development of the company and address issues accordingly. For the external environment (Chapter 2), the growth and the favourable coffee industry of Region 12 is seen as one of the major opportunities for SouthPhil. The government is supportive of programs and plans for the development of the industry. However, the increasing competition from other coffee traders who are capturing coffee harvests in Mt. Matutum is seen as one of the major threats for SouthPhil. For the internal environment analysis (Chapter 3), it is revealed that the company branding is one of the company's major strengths. The company's consistency is maintaining high quality and ethical standards were translated to financial support from government offices, in terms of promotion and provision of long-term loans. On the other hand, a closer look at the company?s financial records show that over the last three years from 2011-2013, the average inventory turn-over of the company was only at 35%, primarily due to the low sales of company's civet coffee product. The high price of civet, being a luxury good, as well as the company not being able to target appropriate markets for the product was the attributed causes to this very low sale of civet. Aside from the inventory issues that were discovered in the market analysis, it was also found that the company also falls short in its capacity utilization. From the industry standard of 38%, SouthPhil's machine capacity utilization is only for an average of 31%. Moreover, financial analysis also revealed that although the company enjoy a very high contributing margin, the bulk of the revenue goes to the fixed costs at an average of 80% for the three year period. This is caused by the large amount of loans that the company acquired over the last three years. The company's existing mission and vision were analyzed next. New vision statement was suggested which better describes the state at which the company envisions itself to be. Financial and non-financial goals were also suggested. From the key internal and external factors, a strategic management tool called SWOT Matrix (Strengths, Weaknesses, Opportunities and Threats) Analysis and QSPM Analysis (Quantitative Strategic Planning Matrix) were utilized to determine the most appropriate strategies for the company. Through these tools, it is ensured that the opportunities and strengths are taken into considerations, while addressing key threats and weakness of the company. Chapter 6 of this paper outlines the details of the implementing programs for SouthPhil according to the four functional areas of the organization, namely operations, marketing, finance and human resource. Chapter 7, on the hand, discusses control systems that are deemed very important in supplementing identified strategies and ensuring that desired output and projections are met.