In Partial Fulfilment

Quiz #2

Presented to

The Faculty of the College of Business - MOD Department

De La Salle University - Manila

In Partial Fulfilment

Of the Requirements for the Course

INTERBU

Submitted by

Bueno, Jan

Evangelista, Hana

Sato, Hiroyuki

Tiburcio, Dan

Submitted to

Mr. Jose Mari Lim

March 8, 2012

I. Identification of Problems and Issues

The problem at hand is the dilemma of Philippine Canning Corporation. Since Azucena is the head of corporate planning, her role is to translate the broad strategic objectives into practical and tangible plans so that everyone could see every bit of the plan in the bigger picture that would result into better outputs from the people. First, she has to consider which country to get beef supply from among the three given countries such as Argentina, Australia, and India. To be particular, regarding these countries, she should make recommendations on the historical supply of beef, value of the currency in the international trading arena, culture, all costs associated with the acquisition of beef which is related to the distance of each country from the Philippines and what means of transportation are available and are reasonable to use for the operation. Another thing that Azucena should look at is the options given for the long-term debt that the company will be needed for the purchase of equipment that would be used for the cannery of beef. These options should be assessed so that the option that is more cost-efficient would be known.

II. Objective

Regarding each country,

a) Historical supply of beef

- The Philippine Canning Corporation should look at the trend by numbers and graphs and/or charts so that they could forecast what could possibly happen next can be seen and evaluated. This could identify the cost in the future which is caused by the relationship of supply and demand and of course, the supply for the operation of the company. The country with the most supply of beef today and in the future should be chosen.

b) Value of the currency in the international trading arena

- The things that need to be looked upon here is if the currency could be used in international trade and if not, its value against the US dollar because this is one of the risks given when doing business internationally. Of course, it should be evaluated as to which country gives a currency that would be less risky for the company.

c) Culture

- A country's major religion and general attitude are only two of the things

that need to be considered. Actually, the totality of a culture of a certain place could tell a lot of things which are important for business dealings especially when it comes to the way they work, their holidays, and the things that need to be observed when doing business with them like gestures. Simple as they may seem but they could do harm for a company. The choice should be the one that fits better with a company.

d) All other costs associated with the acquisition of beef

- First of all, the price of the beef offered by a certain country should be taken into account. But we should not be blinded by the price alone because there are still more that need to be summed up which could possibly be an expenditure of the company in the future. Next thing is the distance of a specific country from the Philippines and the available means of transportation for the transportation of beef. With the distance, definitely the one nearest to the Philippines should be selected. But in line with the distance when it comes to cost, the means of transportation should also be considered. For example, if the country is near but if it doesn't have a plane which is the one needed to bring the beef to the Philippines as fresh as possible then it would still incur a lot of cost. So the distance and means of transportation should be evaluated together and the one that incur the least cost should be selected.

III. Methodology

In order to gather data for the case study, the group researched using the internet by visiting different websites and lists them as references. The websites that were chosen must have its credibility regarding the topic at hand. Also, the websites should be well informed and must be up to date.

The first data that the group would consider is the history regarding the supply of beef on the countries of Argentina, Australia, and India. Second, the foreign exchange rate should be considered because the rates changes from time to time. Next, the culture of one's country should be considered as well because each country has different traditions and beliefs. Last but not least, the costs for acquisition beef should also to be taken into account because transporting of goods internationally can be an issue.

IV. Scope and Limitations

The scope of the case study is to consider and make recommendations on different issues regarding the plans of the Philippine Canning Corporation. Furthermore, the group would only focus only the countries of Argentina, Australia, and India because it is the chosen suppliers for beef. Also the foreign exchange rate should be up to its current rates.

The first limitation of the case study is the historical data to research each country according to its overall imports and exports of its beef supply. Furthermore, it is limited because the data is not currently up to date. The second limitation is the in-depth information of one country's culture because only a few can be an issue within connection of importing beef from other countries.

V. Analysis and Alternative Solutions

After analyzing