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University of the Philippines VisayasCollege of Management2005 27218JAFFY BRATT R. MANDAWEB.S. Business Administration (Marketing)

MARYS RICE TRADING

I. Introduction

Marys Rice Trading is a small family business that engaged in retail and

wholesale of rice. Though its services were catered to a wide scope of market such as

to other retailers, restaurants, hospitals, hotels and companies that provided rice

subsidies, it has no formal organizational structure like most of family business.

Recently, big problems were faced by Marys Rice Trading. It has lost its two

major corporate accounts, the Happy Foods which would order 1,800 sacks a year and

Makati hospital which had been a client for almost 30 years. There were no apparent

reasons why they stooped ordering and no specific explanation why they shifted to

other rice traders. However, Nicole, the daughter of the owners and currently

assisting the business thought that she might have mismanaged the accounts and her

failure of submitting her price quotations with rice samples on time. Also, her hectic

schedule made it impossible for her to do follow-ups on the problems.

II. SWOT Matrix and Analysis

Strengths* gain corporate accounts* engage in retailing andwholesaling* get enough experience inhandling the business for 30 years

Weaknesses* no formal organizationalstructure* mismanagement of corporateaccounts* managers hectic schedule

Opportunities* outside clients for greaterpromotional mileage* the booming restaurant and

food industry* never-ending demand for rice

MAXIMAX StrategyThis is the time where Marys

Rice Trading can gain highestturn over ratios. The only way to

maintain dominance is tostrengthen relationships with itsclients.

MINIMAX StrategyA slight downfall will be

noticeable in this part. Sinceexternal considerations are

stable, resetting business goalsand policies including properstaffing should be observed.

Threats* government and publicinstitutions intervention like ricesubsidies* advent of stiff competition* employees non-conversion ofrice subsidies to cash

MAXIMIN Strategy

Although Marys Rice Trading isthreatened by external factors,intensifying the business throughproper positioning is a goodstrategy to combat these threats.

MINIMIN Strategy

This turns the major downfallof every business. The only wayto survive this is reinvention,meaning shutting down and livingagain.

Internal

External

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III. Conclusion

Of the strategies presented in the matrix, three out of four conform to the

retention of the business. This only means that since Marys Rice Trading has beenalready established, just a mere modification will do in order for it to stay alive.

IV. Recommendation

In any case, when worst comes to worst, the only recommended strategy for

the business to endure is reinvention. In this stage of the business process, major

upgrades and reformatting are done. It is recommended therefore that Marys Rice

Trading will casts all its major seatbacks comparative to external threats so thatreinvention can immediately start.