Executive Summary

The University Business Affairs Program (UBAP) is one of the four programs of Central Luzon State University (CLSU). Currently, this program handles income generating projects such as crop production specifically rice and mangoes, animal production such as swine, poultry, broiler, goat and tilapia. It is also engaged in commercial and business development projects such as processing of food products, water refilling station and garment production. This strategic management paper will focus on the crops produced such as rice, mangoes and different seedlings.

Results of internal analysis show that the University Business Affairs Program specifically the Crop Production Office has a good financial status in terms of production and sales of rice. An increase in land area planted since year 2016 contributed to the major increase in rice production added with good management leadership.

It should be noted that opportunities for established farmers and organizations in the Crop Sub-sector remains promising as the need for food continuously balloons. Threats on the other hand, like environmental degradation and climate change, and turns out to be advantageous to existing farmers and organizations in the Crop Sub-sector as the supply and demand gap keeps on increasing as a result.

Competition in the Crop sub-sector in the country is kept at a minimum despite the availability of various investors from private firms and/or pension funds due to the lack of enough land in one geographic area to make a significant investment. Other barriers to entry include importation and tarrification policies that are continuously being rationalized to protect the interest of domestic farmers and organizations in the Crop Sub-sector.

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These policies control the level of rivalry between domestic farmers and that from other Asian countries, as well, as importation is kept at a minimum.

The availability of various suppliers producing high yield and high-quality seed varieties and farm implements increase farmers and organizations access to cheaper alternatives hence, reducing the bargaining power of input suppliers.

Lastly, consumers in the Crops sub-sector will not exert significant, negative influences on industry profitability due to frequent insufficiency of supply that created large supply-demand gap. Further, the need for feeds by the Livestock Sub-sector creates an alternative market for the Crops Sub-sector hence, continuously expands opportunities for farmers and organizations like the CLSU University Business Affairs Program – Crop Production Office.

Strategy Formulation tools are used to measure the appropriate actions needed by UBAP in achieving organizational objectives and accomplishing organization purpose. The formulation tools used was BCG Matrix, SWOT Matrix, SPACE Matrix, Internal/External Matrix and Grand Strategy Matrix. The summary of strategies showed that the recommended strategy for UBAP is either market penetration or market development. Based on the QSPM, Market Penetration has the greater weight than the market development.

The proposed financial objectives are to increase the total net income of at least 20% in 2019 onwards and to reduce the expenses of N/P/O of at least 50% from 2018 in the next three years. Some proposed strategic objectives are to increase customer overall satisfaction score by 90% in 2019 onwards and to encourage customer loyalty of by providing quality product; Periodic maintenance of equipment and processing center for efficiency use every end of cropping season or at least every six months; Full conversion from manual to mechanical seed production starting Wet Season of 2019 onwards; Significant increase in financial support given to faculties and students for their actual field operations of at least 5-10%; and attendance for training both technical staff and field workers by 2019-2021 at least twice a year or if needed. The recommended business strategy of UBAP using Market Penetration is to increase their market share if they can produce more due to decrease in post-production losses of rice module and to extend marketing strategy to increase sales of N/P/O. If Market Development, they need to plant economical crops or vegetables after harvesting.

To guarantee proper implementation of the strategic plan, measures and target have been clearly defined, along with goal, objectives and initiatives. Strategy evaluation should be done semi-annual to monitor and examine the strategies implemented. Taking corrective measures needs to be strict and prompt to ensure that the plotted strategy, goals, objectives and initiatives will go along with the plan.


The University Business Affairs Program (UBAP) is one of the four programs of Central Luzon State University (CLSU). This program handles the different income generating projects of the university. The university president is the administrator of the program which provides vision and overall direction of the program. A vice president, which is also a faculty of the university, is designated by the university president to lead and presides the operation and management the program. Under this program constitute three offices namely, the Crop Production Office (CPO), Animal Production Office (APO) and Commercial and Business Development Office (CBDO). The CPO and APO is in charge in producing agri based products such as rice, propagation of seedlings and enhancement and cultivation of fruit trees, table egg production and swine, goat, broiler and fish specifically tilapia production. The CBDO is in charge in producing non agri based products such as processed food products which is done by the Agriculture and Food Technology Business Incubator, producing purified water by the CLSU Water Refilling Station, school and office uniforms handled by the CLSU Garment project and also caters to ambulant vendors and one stall. The different produce of the project is for sale to CLSU employees and outsiders in a competitive price.

This paper will focus on the study of the different produce of the Crop Production Office such rice and grafted mango seedlings, guava, chico, tamarind etc. The office also is in charge in facilitating the spraying and harvesting of mango fruits to the 1,280 mango trees in CLSU. Spraying and harvesting of mangoes is being contracted by a private individual through public bidding. Mango harvest is being divided on a sharing scheme of 48% of harvest goes to contractor and 52% of harvest goes to UBAP CLSU. Part of the mango share of CLSU is also sold to the contactor and the rest to CLSU faculty and staff. Under CPO also is the Feed and Grain Processing Center. This is the place where palay produced is being dried and milled. The center is also in charge in disbursing the rice ration to CLSU employees.

The current asset of the Central Luzon State University including the IGP’s from University Business Affairs Program is ?15,882,289.64 as of December 2017 with total revenue of ?6,970,172.95 (Production Year July 1, 2017 – June 30, 2018). The Crop Production Office constitutes the 62.07% (?4,326,900.26) of the overall income of the program. The major markets of the CPO are CLSU faculty and staff and near residence of barangay Bantug, Science City of Mu?oz.

The Crop Production Office has an office director who assumes direct responsibility for the overall supervision and administration of all project components under his domain to achieve established targets with optimum efficiency (A Handbook of the University Business Affairs Program of the Central Luzon State University, 2007)

Research Design and Methodology

Data used in this study comes from the University Business Affairs Program handbook, consolidated income and expenses of the Crop Production Office and recent contract of mango production with private individual. Secondary data are gathered to different agencies and private firms that is also engage in producing rice and businesses that also harvest mango fruits and propagate and sells different seedlings will be used to support the study. The study will be used the different strategic management tool in analyzing the internal and external factors that might affect the performance of the office.

Socialized pricing is being implemented in terms of rice ration to CLSU employees. That is why the price of rice being sold to CLSU employees is comparatively lower compared to commercial rice being offered in the market. The rice produced can only be purchased by CLSU employees. But selling of palay to outsiders is allowed if the palay produced will be in excess to the current needed rice ration of CLSU faculty and staff.

Organization’s Vision and Mission

The University Business Affairs Program vision, mission and objectives are the following:


The University Business Affairs Program as a model among State Colleges and Universities and other government and non- government institutions in the Philippines.


To vigorously pursue a sustainable and competitive income generating program for Central Luzon State University utilizing its resources and developing entrepreneurial capabilities of faculty, staff & students and other development partners.


  1. To manage and supervise all income generating projects by harnessing the University resources, facilities and expertise;
  2. To catalyze and complement the instructional, research, extension and development programs of the University;
  3. To provide production, processing and marketing models to farmers SCUs and other institutions;
  4. To provide quality products and services to faculty, staff and students of the University and to outside clientele/customers;
  5. To provide faculty and staff additional opportunities to augment their income and venue for students to earn while they learn; and
  6. To assist in the livelihood programs of the government

Evaluation of the Vision and Mission of UBAP

On the vision statement above, it can be seen that it is not clearly defined as to what specific area University Business Affairs Program (UBAP) wants to become a model. The readers or customers of UBAP will not be able to understand what UBAP is all about by merely reading it. Since UBAP is mainly concern on the handling/managing the income generating projects of the university, it should already be indicated on the vision statement for the readers to have a clear grasp about the organization. If it is a model in terms of how great it handles the income of the university and as a program of the university that caters students in terms of on hand training in agricultural production.

The mission statement of UBAP does not clearly defined what particular product the business offers and who are its primary customers. Also, though it is stated in the paragraph about its plan in pursuing a competitive income generating program for the university and what it can contribute to its clients (faculty, students and other developments partners), what is lacking here is a statement about their mission to their employees. Employees or human force in an organization is its bread and butter especially the businesses which are engage in agricultural based products such as rice, mangoes and animal production. Another one is that on the mission statement, the non-academic staff of the university as one of its clients was not mentioned.

In terms on creating its public image, UBAP which is under the Central Luzon State University, a government agency, it should be seen in the mission statement its dedication to provide service by offering a good quality product at a very competitive price.

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Strategic Managment Paper. (2019, Dec 15). Retrieved from https://paperap.com/strategic-management-paper-best-essay/

Strategic Managment Paper
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