Case Analysis of Bulacan

Garden Corp.
(Organic Fertilizers)

October 16, 2020

Time Span:

In the year 1973 the Philippine fertilizer industry realized regulations and control by this
year wherein a regulatory board were established to mandate the industry. In the later
years, the fertilizer industry struggles for time to time as it keeps up with the demands
not only by the consumers but also by the government. Up to present, with high cost
operations and low prices the industry struggles to gain considerable amount of profit.

Background Information

In the Philippines with its natural lands fit for farming, one of its goals is to achieve self-
sufficiency in other factions especially of the two major staples rice and corn. It os one
of the major factors driving the policy environment for the fertilizers. The extent of the
utilization of fertilizers were given a very crucial role. Many agricultural programs in the
country included the provision and usage of fertilizers.

Fertilizer Industry up until the year 1972 were completely free from control. Regulation
and control later realized in 1973 wherein the regulatory board Fertilizer Industry
Authority (FIA) were established. It started with giving non-intervention policies then
later on turned to rigid and comprehensive policies that that threatens the industry itself.
The board later on change into Fertilizer and Pesticide Authority (FPA) in the year of
1977. By 1986, the control was regulated to licenses, monitoring, rates, criteria, and
statistics.

Bulacan Garden Corporation started in year 1979 wherein it became a major contractor
supplier of most government project throughout the country. Along with various services
like landscaping, garden supply, and consultancy that it can offer it became a major
drive in the fertilizer industry. Today BGC presently gloats of its great support benefits
as of now spreading all through the nation. As a result of uprightness, earnestness and
genuineness combined with ability and polished skill, the enterprise is currently
presumed as the most trustworthy and solid nursery firm in the nation.

Strategies Described

As the competitions tightens considering the restrictions of the regulations mandated by

the authority, agencies come up strategies to lift up the business and ride the tide of
competition. They come up different ways to attract crowd and one of these are
seminars. Most of the agencies set up these seminars to provide information about the
importance of both organic and processed fertilizers. Along with the authorities they
introduced the balance fertilizer strategy wherein they foretell that the usage of both
process and organic fertilizers are more needed. Agencies conduct also different
programs together with the authorities such as National Rice Program and Corn and
Cassava Intensification Program.
Most agencies conduct such activities with the government authorities it is because the
strategies itself were also connected with the project of the government thus, link with
the greater goal for the country. Some put up sponsorship to include there own products
in a government program while others, deals with partnership to introduce there own.
Some of agencies many took activities that is quite eye-catching like rehabilitation of
landscape. On the other hand, some support local farmers to introduce the usage of
organic fertilizers.

Statement of the Problem

The problem of Fertilizer Industry Association of the Philippines lies with the threaten to
the viability of the fertilizers in the market. As well as, to sell product that can be also
gotten for free.

Plan

Agencies along with the government authorities have goals to achieve for the greater
good of the country. One of its main goals is to achieve self-sufficiency in major staples
like rice and corn. Keep in mind that this goal can help to reduce widespread poverty
and hunger. Though to make this happen, efforts for agricultural boost is most needed.
The introduction of strategies can help the businesses to keep on run and gain profit.
Good results can maximize this businesses for best of its uses and achieve greater
goals.

Data Analysis

SWOT Analysis

Strength

 Technology innovation helps in production

 Resilient workforce
 Good quality and naturally near in the market
 Strong supply chain management
 Low price

Weakness

 High cost operations

 Geographic limitations
  High investment
 Insufficient production
 Usage of fertilizer

Opportunities

 Government subsidies
 Expand market by globalization
 Continuous improvements in quality and raise conscious to audience
 Wide availability of the market

Threats

 Environmental effect is high

 Demands for fast results
 New rising competitors
 Price dictation by private sector

Alternative Courses of Action

1. Cut of price dictation from private sector

The regulation of prices should be mandated by the government and not by the private
sector. This dictation strips off the opportunities that some business can achieve.
Having proper regulations of prices can help the businesses to gain great margin of
profit.

2. Crossover nations

Fertilizers might never be enough in some countries and the possibility of export might
not be impossible. Even here in the Philippines, we get imports of fertilizer to fill up the
demands needed.

3. Media Advertising

Even though it seems that it will be a useless advertisement in the media but the
chances of finding a consumer is still very high. Apparently, some people owned lands
that suited for farming but doesn't know where to start to invest. The chances of
crossing this people can benefit the businesses wherein the possibility of a loyal market
can be there.

Recommendations

Upon analyzing the situations of the Bulacan Garden Corporation and examining the
alternative courses of action that can be utilize I strongly recommend the following:

1. Even with the monitoring of the authorities it is still best strictly mandate the quality of
the fertilizers that were taken in the market. Not only to precent backlash but also to get
loyal consumer out of the market.

2. There should be more widespread of information about the organic fertilizers towards
the community. It can help to have great image to the community and to also be well-
known.

3. Exploring export might not be bad. It can help to create new opportunities and give
boost to the industry.

Action Plan

The action plan table below reflects the action of the possibility of exporting fertilizers and be
part of globalization.
Person Responsible Duties
a. Support government
programs
b. Provide quality and
effective fertilizers
Bulacan Garden
c. Support local farmers
Corporation
d. Promote export of
Philippine fertilizers
e. Widespread of information
about agriculture
Time Implementation
1. Feedback
a. Accept
b. Reject
The possibility of exporting fertilizer and add
up the demands of the country for fertilizers
makes the association wary about the
situation. Taking account the future
possibilities the association accepts the
challenge and push further for greater
heights of results.
2. Decision Taken
a. Full Implementation
b. Shift to next best
The decision of Bulacan Garden Corporation
to accept promotion of exporting, adding up
with its high demand rate in the country.
The taken course is to fully implement the
said promotion as it will one of the core part
of operations in both local and international.
3. Action or Changes made
The action taken by association changes
some ways in the Industry. One of this is the
boost on private sector of fertilizer industry.
The change gives the private sector a chance
to manipulate and utilize the industry
leaving behind local sector.
4. Lessons learned
In the year 2013, some groups of call for
strict promotion for raw and processed
agricultural products. The private sector will
have a essential role but it will also give
opportunities for the local sectors.
5. Could this method be
adapted/replicated
The probability of adapting and replicating
this method to some business is possible.
The outcome may vary but it is possible to
be used by others.
Reference

A Review of the Policies Affecting the Philippine Fertilizer Industry. Agropages.com.

Accessed October 15, 2020. http://news.agropages.com/News/NewsDetail---27283.htm

Alunan MJM. Serious problems threaten viability of fertilizer. The Philippine Star.
https://www.google.com/amp/s/www.philstar.com/business/2001/09/05/132643/serious-
problems-threaten-viability-fertilizer/amp/. Published September 5, 2001. Accessed
October 15, 2020.

Balanced fertilization for a food-secure Philippines - Secretary Dar - Official Portal of the
Department of Agriculture. Gov.ph. Published August 22, 2019. Accessed October 15,
2020. https://www.da.gov.ph/balanced-fertilization-for-a-food-secure-philippines-
secretary-dar/

Briones, Roehlano M.. 2017. The Fertilizer Industry and Philippine Agriculture: Policies,
Problems, and Priorities. © Philippine Institute for Development Studies.
http://hdl.handle.net/11540/7658.

Carol Q. Bagos Larry N. Digal Roelano M. Briones Arlan Z.I. Brucal Michael R.M.
Abrigo Kristal T. Uy Isabela Rosario G. Villamil. Philippine Journal Development.
Philippine Institute for Development Studies; 2017.

DA promotes the use of organic fertilizer - UNTV News. Untvweb.com. Published May
18, 2017. Accessed October 16, 2020. https://www.untvweb.com/news/da-promotes-
use-organic-fertilizer/

Fao.org. Accessed October 15, 2020. https://agris.fao.org/agris-search/search.do?

recordID=PH2000100509

Free organic fertilizer for co-op members. Com.ph. Published January 31, 2018.
Accessed October 16, 2020. https://www.agriculture.com.ph/2018/01/31/free-organic-
fertilizer-for-co-op-members/

Promotion of exports - official portal of the department of agriculture. Gov.ph. Published

September 25, 2016. Accessed October 16, 2020. https://www.da.gov.ph/foundation/3-
promotion-of-exports/