Final Econ Paper

Justine LabucayClara Lagman

I. Statement of the Problem

I.1 Background

Pio Arsenal, a former Supreme Court Justice, first started Sun Valley Food Manufacturing Corporation in the 1980s. According to his daughter, Chat Arsenal, they did not know the reason why he suddenly wanted to get into the coconut business. And so, the business started as a backyard industry that later became a medium scale business. Through Mr. Arsenal’s hard work alongside the pilot plant established by the government, the corporation became the pioneer in coconut milk canning. According to Chat Arsenal, the company used to distribute locally, going door to door of different houses. But afterwards, when the company had their breakthrough in exporting to Japan, they wrote to different embassies, and focused on exporting abroad instead. The company is currently exporting to Japan, Thailand, US, and some European countries (not direct). Locally they supply coconut milk to the Manila Hotel, and Shangri-La Hotel.

I.2 Problem statement

“Since your father’s generation, the market has been very hard to keep up with, what can you do to keep the company together and continue to be up and running?”

I.3 Significance

The significance of this study will help the researchers learn more about how local business blossoms into big time corporations. The researchers will also be able to show the history of the corporation and how they came to be the pioneer in coconut milk canning. The study will also show the ‘wonders’ of the socio economic approach, and how it can be used to help workers enjoy working for your company. The study will also serve as an example for the Hecksher-Ohlin theory. And lastly, the research will serve as a reference and motivation for other students or concerned business-minded people with their upcoming business.

I.4 Methodology

The researchers have decided to make a qualitative research, particularly an interview with the president of the company. The researchers feel that an interview is appropriate for the study because the interviewee would be more open and free to say anything about her company. And also, while interviewing, the researchers opted to use a recorder for the interview.

II. Conceptual Framework

The conceptual framework that the researchers have chosen to compare the company’s actions was Hecksher-Ohlin’s theory. Heckshser-Ohlin expressed that exports are made out of resources that are abundant and cheap, while exports are made of resources that are scarce and expensive. In connection with the Sun Valley Manufacturing Corporation is that Sun Valley exports coconut milk to foreign countries, coconuts, as we all know, are abundant and cheap here in the Philippines. While on the other hand, Sun Valley imports technology and machines from others so as to help in the production of their exports.

III. Empirical evidence

These two pictures are one of the factory’s buildings. The first picture is

the canteen where the employees take a break and rest, and the second picture is the Nata De Coco department, this is where Nata De Coco is stored and made.

This second batch of pictures shows the process wherein coconut is made. The first picture shows how Nata De Coco is cut and separated and the second picture shows how coconuts are stored.

The third batch of pictures shows the machines used for the coconut milk or Nata De Coco making. Both pictures are used for heating.

The fourth batch shows the workers and their work. The first picture shows the canning process, and the second picture shows the workers separating the Nata De Coco.

The fifth batch shows the processes of how Nata De Coco are made. The first picture is the heating of the Nata De Coco and the second is the cooling of the Nata De Coco.

The fifth batch shows the workers and some of the machines used. The first picture shows the workers taking the Nata De Coco for cutting and the second picture shows the coconut shellers.

The sixth batch shows the workers and the process. The first picture shows the worker putting sugar in the Nata De Coco solution and the second picture shows the closer version of the heating process.

The seventh batch shows the workers and the process. Both pictures show the packaging process, the first picture shows how Nata De Coco is packaged in plastic, while the second picture shows how Nata De Coco is packaged in cans.

Due to certain circumstances, the researchers were not able to have a Focus Group Discussion with the workers. To compensate for that loss, the researchers asked the president of the company to provide us with pictures of the factory and workers instead.

The researchers also asked the president about the working conditions and qualifications. These were what she mentioned: The workers must live in Laguna, and dedication and organization is needed. Regarding her workers, this is what she said: Most of them are skilled workers (most are not high school graduates), most of them have been working for the company for thirty years, there is a 20:20 male to female ratio, and their benefits are the required by the

government (Philhealth and etc). The work done are shelling, peeling, receiving, and sterilization.

The peak season for the company is all year around, although the months where the company receives much income is from February to May because of the abundant supply of coconuts.

The researchers also asked the president about the helping and hindering factors of the company, their hindering factors are: Foreign competitors (particularly Malaysia, Brazil and Thailand), and the cold weather. Their helping factors are shortage in production of foreign competitors, strictness of Pio Arsenal, and the incident about Nata De Coco.

When asked about the government, the president showed little recognition of the government. She said that being involved with the government is more of an expenditure than an investment. The only helpful activities provided by the government are training programs and product development programs.

The researchers asked the president if there were any awards received by the company, she mentioned two. The first being, PCA clearance, and “Outstanding Coconut Milk Manufacturer.”

IV. Recommendations

The only recommendation given by the president was, “Society helps you when you’re nice to them.”

V. Conclusion The researchers have concluded that the company has been using the socio

economic approach so as to keep the company together and stronger. Their president focuses on looking at the company as help for those in need, particularly the workers, and does not treat it as a business when it comes to her workers. Regarding how the company is run, a lot of responsibility is needed in order to make a company grow and flourish. And also, always set your standards high.