Case Study

EXECUTIVE SUMMARY

Agri-Tech Products Company is a firm that specializes in the production and marketing of agricultural-based products. It normally enters into royalty agreements with inventors or scientists for new products developed by them. This company was approached by Dr. Renato Melgar to produce and market the Rapidgrow --- a soil treatment in pellet form which increases the growth rates of two- three species commonly used in reforestation in Asian countries by 30-70 percent in a span of 6-18 months. The product direct cost is estimatedb at P0.0288 per tablet. And if this product will be out in the market, Dr. Melgar estimated that the foreign market of Rapidgrow is to be about 1.5 million hectares per year 93% of which is for Indonesia and the rest for Thailand and Malaysia.

POINT OF VIEW

The top management of the Agri-Tech Products Company is in the position to make the final decision if they are going to accept the proposal of Dr. Renato Melgar

TIME CONTEXT

October 12, 1989 was the day when Dr. Melgar of the Institute of Biotechnology of an Agricultural College approached the Agri-Tech Products Company for the production and marketing of Rapidgrow, therefore, it is the time to be analyzed the situation.

STATEMENT OF THE PROBLEM

Should the Agri-Tech Products Company accept the proposal of Dr. Melgar to produce and market Rapidgrow? If yes, should it purchase the equipment or subcontract the product of Rapidgrow?

STATEMENT OF THE OBJECTIVES

 To identify the advantages and disadvantages of the product and if the said company are going to profit if they are able to produce and market it.

 To determine whether the proposal can really help the potential buyers of the product

 To determine if it can’t contribute to the pollution in our environment

 To identify the benefits can be get by the company in the Rapidgrow production

AREAS OF CONSIDERATION

STRENGTHS

o New machinery costing P 437 500 ( During the year 1989 the...