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Lifetime profitable partnership : a strategic plan for Vitarich Corporation / Sherleen C. Rosalia

By: Contributor(s): Material type: TextTextLanguage: English Publication details: 2021Description: 83 leavesSubject(s): Dissertation note: Thesis (Master in Management) -- University of the Philippines Mindanao, July 2021 Summary: Vitarich Corporation is a homegrown business in the Philippines with 70 years of history. It has been one of the longest-running feed manufacturing companies in the industry and has established ties with international poultry integrators since its inception. It was founded and managed by the Sarmiento brothers in 1950. Vitarich is considered the first commercial feed company in the country and has been producing livestock and poultry feeds following global quality standards. The company is pioneering in livestock freed formulation and has expanded from a single plant corporation to three major feed manufacturing plants one plant each in Luzon, Visayas, and Mindanao islands. With the growing business operations, the company has been addressing several concerns along its supply chain such as sourcing, receiving, and unloading raw and non-raw materials to the plant. Since the company's expertise and business core is the manufacturing of feeds, this strategic planning paper will focus mainly on the issues and concerns of the support group which is composed of several team players. In terms of location, since the Mindanao operations account for 36% of the grain requirement nationwide, this paper focuses on the major operational branch of the company. Mindanao regional operations is a good representative for the company nationwide by which Vitarich owned the two plant operations. Policy recommendations proposed in this study will be replicated in the other two areas. This paper follows the basic principles of Input-Output analysis or known popularly as the IPO model developed by Wassily Leontief in 1941. In microeconomics, the production function is expressed as relating the quantity of output to the quantities of inputs, capital and labor. Thus, depicts how firms decide on the combination of inputs in a cost-minimizing technique. To design the paper according to the strategic management framework, the process model of Fred David (2011) is used. Furthermore, the overall tone of this strategic paper is gearing towards the contemporary strategic approach and application of the Stakeholder's Theory. From the several lists of concerns assessed and identified as bottlenecks along the supply chain, strategy and policy will be formulated from the results of internal factor evaluation (IFE) and external factor evaluation (EFE) matrices. The factors will then go through Grand Strategy Matrix and SWOY Matrix. This paper utilizes primary and secondary data to evaluate the internal and external position of the company in the feed mill industry. Meanwhile, secondary data such as statistics from related government agencies, world market updates on the trading of major feed ingredients, and pieces of literature for the theoretical framework are utilized to identify and evaluate the external factors affecting the firm's business processes. Moreover, the author of this paper makes use of the supplier surveys conducted during the first and second quarter of the year, focus group discussions among the decision-makers in Mindanao operations, and regular key informant interviews with external input suppliers to support and augment the analysis and results of this strategic plan paper. Since Vitarich has been performing well for the past five years with an average growth rate of 20% from 2016 to 2020, it is concluded that the business is in a state of rapid market growth. With an average of 2.48 of IFE score, there is strong internal position, it is decided that the strategies that suit the business is in Quadrant I. to choose from the seven general strategies, top internal and external factors are consolidated which make up for 78% of the total weight score. These factors are relating to raw materials that are purchased by the company to fuel its manufacturing operations. This leads the paper to the primary strategy of continuous improvement in terms of (1) product development and with the large participation and involvement of suppliers on the top subject matter, the author opts for the secondary strategy of (2) backward integration. Continuous product development entails both physical infrastructure and system improvement while the backward integration will cover the active partnership and collaboration with suppliers. As guided by the strategy command of product development and backward integration, this strategic plan will focus on Strategy I ? the transformation of infrastructure performance with the highest total attractiveness score of 5.69. the second highest strategy which is the supply chain integration also supports the stakeholder management framework of this paper. The favorable plan that this paper proposes which are responding better to the external factors will lead to the successful rollout of this strategic plan paper. This plans and programs may sound like small CSR activities to some, but these little initiatives are working towards sustainable workmanship and partnership. To sum up, the main goal of this paper is to enforce inclusivity of every business unit, internal and external stakeholders together working towards the common goal of value creation not only for Vitarich but for all the participants involved in the business.
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Thesis Thesis University Library Archives and Records Preservation Copy LG993.2 2021 M21 R67 (Browse shelf(Opens below)) Not For Loan 3UPML00038474

Thesis (Master in Management) -- University of the Philippines Mindanao, July 2021

Vitarich Corporation is a homegrown business in the Philippines with 70 years of history. It has been one of the longest-running feed manufacturing companies in the industry and has established ties with international poultry integrators since its inception. It was founded and managed by the Sarmiento brothers in 1950. Vitarich is considered the first commercial feed company in the country and has been producing livestock and poultry feeds following global quality standards. The company is pioneering in livestock freed formulation and has expanded from a single plant corporation to three major feed manufacturing plants one plant each in Luzon, Visayas, and Mindanao islands. With the growing business operations, the company has been addressing several concerns along its supply chain such as sourcing, receiving, and unloading raw and non-raw materials to the plant. Since the company's expertise and business core is the manufacturing of feeds, this strategic planning paper will focus mainly on the issues and concerns of the support group which is composed of several team players. In terms of location, since the Mindanao operations account for 36% of the grain requirement nationwide, this paper focuses on the major operational branch of the company. Mindanao regional operations is a good representative for the company nationwide by which Vitarich owned the two plant operations. Policy recommendations proposed in this study will be replicated in the other two areas. This paper follows the basic principles of Input-Output analysis or known popularly as the IPO model developed by Wassily Leontief in 1941. In microeconomics, the production function is expressed as relating the quantity of output to the quantities of inputs, capital and labor. Thus, depicts how firms decide on the combination of inputs in a cost-minimizing technique. To design the paper according to the strategic management framework, the process model of Fred David (2011) is used. Furthermore, the overall tone of this strategic paper is gearing towards the contemporary strategic approach and application of the Stakeholder's Theory. From the several lists of concerns assessed and identified as bottlenecks along the supply chain, strategy and policy will be formulated from the results of internal factor evaluation (IFE) and external factor evaluation (EFE) matrices. The factors will then go through Grand Strategy Matrix and SWOY Matrix. This paper utilizes primary and secondary data to evaluate the internal and external position of the company in the feed mill industry. Meanwhile, secondary data such as statistics from related government agencies, world market updates on the trading of major feed ingredients, and pieces of literature for the theoretical framework are utilized to identify and evaluate the external factors affecting the firm's business processes. Moreover, the author of this paper makes use of the supplier surveys conducted during the first and second quarter of the year, focus group discussions among the decision-makers in Mindanao operations, and regular key informant interviews with external input suppliers to support and augment the analysis and results of this strategic plan paper. Since Vitarich has been performing well for the past five years with an average growth rate of 20% from 2016 to 2020, it is concluded that the business is in a state of rapid market growth. With an average of 2.48 of IFE score, there is strong internal position, it is decided that the strategies that suit the business is in Quadrant I. to choose from the seven general strategies, top internal and external factors are consolidated which make up for 78% of the total weight score. These factors are relating to raw materials that are purchased by the company to fuel its manufacturing operations. This leads the paper to the primary strategy of continuous improvement in terms of (1) product development and with the large participation and involvement of suppliers on the top subject matter, the author opts for the secondary strategy of (2) backward integration. Continuous product development entails both physical infrastructure and system improvement while the backward integration will cover the active partnership and collaboration with suppliers. As guided by the strategy command of product development and backward integration, this strategic plan will focus on Strategy I ? the transformation of infrastructure performance with the highest total attractiveness score of 5.69. the second highest strategy which is the supply chain integration also supports the stakeholder management framework of this paper. The favorable plan that this paper proposes which are responding better to the external factors will lead to the successful rollout of this strategic plan paper. This plans and programs may sound like small CSR activities to some, but these little initiatives are working towards sustainable workmanship and partnership. To sum up, the main goal of this paper is to enforce inclusivity of every business unit, internal and external stakeholders together working towards the common goal of value creation not only for Vitarich but for all the participants involved in the business.

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