Thesis (Master in Management) University of the Philippines Mindanao, 2024

Davao Thermo Biotech Corporation (DTBC) is a pioneering biotechnology firm based in Davao City, Philippines, with a strong focus on sustainable waste management and Super Compost production. Established in 2014, DTBC aims to revolutionize Philippine agriculture by converting biodegradable waste into high-quality organic fertilizer. Despite significant achievements in operational efficiency and product development, DTBC faces challenges including underutilized capacity, low sales of new products, capital deficits, and a need for a stronger organizational structure. DTBC’s mission is rooted in transforming biodegradables into natural fertilizer using innovative technology licensed from Japan’s Kanayo Wakuchin Vaccine Manufacturing Co. Ltd. This technology employs hyperthermophilic aerobic bacterial composting to produce Super Compost, which enhances soil fertility and supports sustainable farming practices. Since starting operations in 2017, DTBC has been recognized with several awards for its contributions to sustainable agriculture and environmental stewardship. A thorough business environment analysis highlights significant barriers to entry in the WMS industry and the Super Compost market. High capital requirements, stringent government regulations, and competitive pressures from existing players particularly local government units (LGUs), pose challenges. However, the analysis also reveals opportunities for DTBC to leverage its technological expertise and focus on sustainability to differentiate itself in the market. DTBC’s business model, analyzed using the Mansmith Business Model Map within the framework of the Business Model Canvas (BMC), outlines critical components such as target markets, value propositions, channels, customer relationship, revenue streams, key resources, key activities, key partners, cost structure, supply chain, and reconfiguration strategies. The BMC framework necessitates overarching strategies for our three key functional areas: marketing, operations, and finance. This model provides a cohesive framework for strategic decision-making and operational alignment, ensuring that all aspects of DTBC’s business are geared towards integrated growth and sustainability. The strategic goals for DTBC over the next five years include enhancing financial resources through comprehensive capital-raising efforts, establishing a robust organizational structure, and intensifying key partnerships and collaborations to drive revenue generation from super-compost sales. These goals are designed to address identified gaps and leverage opportunities for sustainable growth. To address the marketing-related challenges and opportunities, DTBC will establish a Business Development Office (BDO). This office will be responsible for developing and executing a comprehensive marketing strategy, including market research, digital marketing, traditional advertising, and grassroots initiatives. The BDO will be staffed by a dedicated team of marketing specialists who will ensure alignment with DTBC’s strategic goals. This office will also manage strategic partnerships with agricultural associations, government agencies, and environmental organizations to expand DTBC’s reach and credibility. Operational strategies focus on technological upgrades, establishing a research and development (R&D) department, and continuous skill development to maintain high standards of efficiency and innovation. These efforts are anchored on the marketing initiatives driven by the BDO to increase sales turnover, which in turn will enhance operational efficiency and the utilization of operating capacity. Financial projections for DTBC anticipate significant revenue growth from both WMS and Super Compost products, with periodic price increases factored in. These projections are aligned with the company’s strategic goals and underscore the need for annual reviews to account for inflation and economic conditions, ensuring realistic and achievable targets. DTBC’s Monitoring and Evaluation (M&E) framework is crucial for assessing progress toward strategic goals and making informed decisions. The M&E system involves quarterly performance reviews, regular feedback mechanisms, and a structured approach to ensure continuous alignment with DTBC’s strategic objectives. This comprehensive approach facilitates proactive performance management and fosters a culture of continuous improvement. Through the adoption of the Balanced Scoreboard (BSC) principles, DTBC can effectively monitor key functional areas –marketing, operations, and finance—by systematically tracking performance against defined KPIs and making necessary adjustments to achieve the desired outcomes. This holistic approach ensures that DTBC’s strategic initiatives are both relevant and effective, driving long-term success in the biotechnology industry. DTBC’s strategic plan positions the company for long-term success and market leadership in sustainable waste management and Super Compost production. By addressing critical gaps, leveraging technological advancements, and fostering strong partnerships, DTBC is well-equipped to achieve its mission of promoting sustainable agriculture and environmental health in the Philippines.