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Ms. Bernadette R. NayraMBA 312-Financial Management
MM-HM

CASE STUDY ON LUCKY PRAWN FARM

Executive Summary:

Ric Solis, one of the four partners in a prawn farming venture in Zamboanga City, was considering the latest request of Ben Torres, his cousin and manager of the venture, for an additional capital infusion of P30,000 to finance the next prawn crop and other requirements of Lucky Prawn Farms. This would be the third request of his cousin for additional financing since the start of the venture a year and a half ago, and Tic was beginning to be concerned about how long these requests for more capital infusion would continue before the venture be stabilized financially.

Statement of the Problem:

1. What specific course of action should be taken by the non-resident partners of the venture in order to facilitate the business more effective and efficient?

SWOT ANALYSIS

1.) Strengths
* For the challenges the business had experienced, Lucky prawn Farm still manage to harvest successful among the other competitors * There are reports that many businessmen have been succeeding into this kind of venture that is why partners in Lucky Prawn look positively in their industry. * For Ben Torres, it is a great experience to handle this business without any financial contribution. * There is always non-resident partner who are ready to give and raised money to sustain the venture.

2.) Weaknesses
* Ben Torres is an engineer, he only acquired knowledge of prawn culture from the farm nearby from the firm he has working before. He does not have adequate knowledge for this business. * Ben Torres purchased some items without proper analyzing and informing his partners about his decisions. * Ric Solis together with his two cousins also do not have enough knowledge to the business they entering. * The partners are away from the location of the business that results from lack of coordination and communication to the operation manager. * For the past 1 and a half year, the business is not yet stable. * There is lack of proper planning and strategies at the beginning of entering into this business.

3.) Opportunities
* The business only leased the two hectares property for the culture of prawn at a small very reasonable price. * Some of their competitors decided to go back from culturing of bangus because of failure in culturing of prawns * Since they have been learned the weakness they started to learned from the past, Ben Torres consult the problem to the visiting technician from UP.

4.) Threats
* The value of prawn has been lowered because of the drop in water gate prices. * The additional fund Ben Torres is asking for another capital infusion although the venture has not been stabilized.

SWOT MATRIX

EXTERNAL INTERNAL| OPPORTUNITIES * The business only leased the two hectares property for the culture of prawn at a small very reasonable price. * Some of their competitors decided to go back from culturing of bangus because of failure in culturing of prawnsSince they have been learned the weakness they started to learned from the past, Ben Torres consult the problem to the visiting technician from UP.| THREATS * The value of prawn has been lowered because of the drop in water gate prices. * The additional fund Ben Torres is asking for another capital infusion although the venture has not been stabilized.| STRENGHTS * For the challenges the business had experienced, Lucky prawn Farm still manage to harvest successful among the other competitors * There are reports that many businessmen have been succeeding into this kind of venture that is why partners in Lucky Prawn look positively in their industry. * For Ben Torres, it is a great experience to handle this business without any financial contribution. * There is always...
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