SWOT ANALYSIS
STRENGHTS
 Prime Location. The site is situated alongside a major thoroughfare, and agricultural
space immediately surrounds the building.
 High level of automation. The company focused heavily on technological initiatives
designed to boost agricultural output and earnings as a result of the sector's recent
upswing.
 Resilient Operations. Due to the cyclical nature of rice production, the businesses include
not just harvesting but also land preparation and crop management. Therefore, the
proprietor merged the three (3) farming stages to ensure the smooth running of the
business.
 Service outperforms all competition. The DAER is the only local establishment that
serves the rural community. In addition, the company provides discounts on the chosen
service provided according to the quantity harvested.
 Skilled machine operators. The company provides a skilled operator to run the
machinery, ensuring everyone's safety on the farm.
 The owner has a background in marketing. Having an owner who is actively involved
and has a strong educational and professional background is a major plus for any firm.
 Low-cost of Marketing. Since the demographic being targeted is limited to the immediate
area, the technique to reach them will be relatively inexpensive. Tarpaulin, Facebook
advertisements, brochures, and word of mouth are all examples of these.
 Excellent Customer Service. In the event of a machine failure, DAER will act swiftly to
fix the problem.
 Reasonable Price. According to the brochure's price breakdown, the technology is more
expensive than conventional agricultural methods but less expensive overall because it
requires fewer steps.
WEAKNESS
 Limited Equipment. The machineries are costly that is why the equipment are limited.
 Financial Management. Since it is a sole proprietorship, the owner has a tough time
controlling the flow of cash into the company.
 High depreciation cost. The depreciation expense would increase in proportion to the
item's purchase price.
 Maintenance cost. Agricultural machinery is typically large, complex, and expensive, and
its upkeep can be just as pricey.
 Equipment Malfunction. It is to be expected that machines will break down occasionally.
A day or more of lost revenue can result from a single processing hiccup.
 Growing competition. Due to the allocation of services and the anticipated income from
DAER, an increase in competitors will reduce the company's productivity and
profitability.
OPPORTUNITIES
 Equipment Warranty. Because of the high cost involved, the company guarantees its farm
machinery to be in pristine condition over the warranty period.
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Developing self-awareness through competitors. DAER will reinvent its services in
response to what the competition is offering to avoid becoming complacent and lose
ground in the marketplace. DAER will make up for any shortfalls in the offerings of its
rivals.
Program offered by the government. There are a myriad of commercial and public
organizations available to meet any business's demands. In the event of a catastrophic
occurrence, the government may decide to impose the subsidy.
THREATS
 Growing competition from public sectors. The lower prices offered by the public sector to
farmers will have a negative impact on the efficiency and profitability of DAER.
 Expensive spare parts of the equipment. The high cost of replacement components for the
machinery poses a threat to the company's bottom line. A budget has been set aside for
equipment maintenance, but if multiple pieces of machinery simultaneously break down
and need new parts, it may not be enough.
 Urbanization. Despite the need for stringent regulation, modernization has transformed
the area into either residential or industrial use.
 Weather condition. Due to natural calamity, the DAER will not create income.
 Surface of the farmland. In the event that the farmland is excessively uneven and not dry
during the harvesting period, the harvester will be useless.
OPERATIONAL STRATEGY
FUNDING SOURCES
The factors and considerations that go into determining the fund categories in this
industry are what ultimately decide what those categories are. The table needs to include a listing
of both the types of financing and the requisite amounts of money. As the owners of DAER, we
are fortunate enough to have access to three different funding avenues for our company. The first
source of funding is from personal savings, which accounts for 40% of the required cash; the
second source of funding is from an investment, which gives 30% of the funds; and the third
source of funding is a bank debit card, which provides the remaining 30% of the funds. It is
projected that ₱ 5,950,000 will be required in order to get this firm off the ground. The following
table outlines the allocations of funds that will be taken up by this total amount.
Table1. Funding requirements and categories
Funding Categories
Construction of building
 Materials
 Workers/construction fund
 Cost of land
Acquisition of Farming Equipment
Acquisition of Truck
Utilities and other materials
Total fund
Amount
₱2,000,000.00
2,500,000.00
1,200,000.00
250,000.00
₱5,950,000