Philippine Canning Corp Case Study

I. Statement of the Problem

The Philippine Canning Corp (PCC), one of the biggest fish canning companies in the Philippines, is currently dominating the canned tuna and sardine market. The company, which used to be a family business, seems to have one goal, be the best in the market. Given their current status of earning about 12 billion pesos of sales per annum, the board of directors of the company do not know where to go and what step should they take next in order for the business to grow further.

The purpose of this study then, is to address the following questions:

1. What can the company do to grow further in the industry?

2. What steps should they take in order to achieve this?

II. Objectives

General Objective:

To identify the factors that PCC should take into consideration in order for the company to grow further

Specific Objectives:

To determine what goal/s should the company set themselves into in order to have a clearer perspective of where they want to be in the next couple of years

To determine what investment/s the company should make in order to develop the business further

III. Analysis and Alternative Generation

PCC is currently in a state where most companies in the business industry wish to be in. Earning about 12 billion pesos per annum, the company has seemed to achieve what they have had their minds set to about 10 years ago. The company is dominating in the canned tuna and sardine industry with about 82% and 23% market share respectively, but the percentages have seemingly declined in the past few years. In 2009, the company had a strong market share of 90%

in the canned tuna industry, which declined to 88% in 2011. This has caught the board of directors of the company as something that is needed to be addressed since the market is growing about 5% per year.

Earlier this year, the company was approached by a delegation of a South American country that has an excess of beef, which seems to have a sustainable supply of raw material, a factor that the company hold great importance to since they are questioning the sustainability of the supply of fish.

Another potential market they are eyeing on is the fruit juice market. This industry had boomed in the economy since 2006. The fruit juice industry, particularly the tropical fruit juice and puree industry, has an average growth rate of about 5.26% a year locally, and 1% internationally (Board of Investments, 2011), which makes it very favorable to go into.

Lastly, the company is also looking at the improving technology of the fish industry, wherein they can now produce other