Lucky Prawn Farm

Lucky Prawn Farm is a case that highlights the importance of management and available st dictategies and control. At the heart of the startups call down of affairs is a dire need for additional operational funding due to unforeseen expenditures for its infrastructure requirements (as opposed to requirements for the yield itself?fry, feeds, etc.). LPF was launched with the vague strategy of raising above-average returns with minimal investment. The investors did not realise experience in the industry, and the industrial partner himself, Ben Torres, had no positive experience in raising prawns. Acceptable returns were not defined, and the startup period for stabilizing the venture was not determined. Consequently, no rate of return was discussed for the initial investment, and a minimum profit/ supreme loss threshold was not set to signal when to closed down. Day-to-day business control resided entirely on the trading operations Manager (Torres) whose services were initially valued at P25,000, the akin amount each of the three capitalists invested. While it was not discussed whether this parting arrangement would have held perpetually through all pay needs, it should have been reasonable to expect Torres to contribute actual currency in succeeding funding requirements.

Moreover, management accountability on the part of Torres to the three capitalists was not discussed. If setting up an despotic P75,000 for the graduation prawn crop was already unqualified, the inexperienced conference also did not plan for quantitative targets after the commencement ceremony prawn crop. Management control was not emphasized; hence, a system for performance feedback and evaluation was not established. Torres claimed that the loss on the second harvest was due to decreased prices, however, analysis all the way shows that even if the previous years price was applied to the 1989 harvest, the revenue still would not offset the cash outlays. After the first harvest, it would have been possible for the... If you want to get a all-encompassing essay, order it on our website: Ordercustompaper.com

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