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Soriano Eco Fiber

Making the most out of coconuts!

About Soriano Eco Fiber

Soriano Eco Fiber is a fully owned subsidiary of the Foundation for a Sustainable Society, Inc. (FSSI, a foundation to upscale businesses), processing fibre from coconut husks (considered agricultural waste). Products are stitched coco coir sold to local bed manufacturers and exported as garden material and irrigation filter to the US and Asia-Pacific; coco peat sold locally and exported abroad as a growing medium for horticulture; hand-woven coco coir nets sold locally and abroad primarily for erosion control. Soriano has 23 regular workers and 13 contract workers. Mostly the workers are from families who are displaced from coastal areas due to typhoons and unemployment in agricultural industry. Annual turnover in 2007 was nearly 17 million Pesos (€ 260,000), with a net loss of nearly 3 million Pesos (€ 46,000). The general goals for 2008 are to generate positive cash flows, establish a more efficient financial and accounting system and improve the teamwork.

Business case

Sales has dropped due to different reasons, some unknown. Competition of India, Vietnam and Sri Lanka is fierce. Soriano asked for general business advice, primarily on the company's marketing & sales strategy. Soriano asked SharePeople for a team of experts, experienced in marketing and sales. Experience in a production environment was preferred, as well as the ability to create a sustainable concrete action plan to boost sales. At the end of the programme, a hands-on action plan, ready to be implemented, was expected.

Results

Analysis

After profound information gathering sessions, a short list of the current issues was created. The CEO, Maitet Paskual, had already made a list of 6 issues she would like the team to address as well. This provided the necessary focus for the next days. With the help of a SWOT analysis, some findings were identified. Based on the three Ps People, Planet and Profit, it was clear the focus on Profit was below average, but People and Planet was widely implemented (although many recommendations for improving the "Planet" part were made as well). It showed the missing of a sales manager was influencing the lack of revenue as well. Bottom line was the conclusion that with some changes, a profit is likely to emerge in 2009.

Advice

With the SWOT analysis as a basis, several concrete recommendations were made:

A sales forecast tool was implemented, and is being used at this very moment
Different ideas were given to provide cash flow with the present stock of coco fiber (products)
People were given the opportunity to create their own description of their function, responsibilities and tasks, which creates clear roles and responsibilities
Soriano is to only sell value added products, to the right market, with an updated website
Different recommendations were given to create added value for current waste within and outside the factory and decreasing the environmental impact

Impact on the overseas partner

The recommendations, of which some are already implemented, could re-enforce the sales capacity. By focusing on the right market and updating the forecast model, Soriano is able to become profitable in 2009.
This ensures the sustainability of Soriano and the income of current and possible new workers, including the many home workers.
The CEO was grateful for the enthusiasm of the group. She received many recommendations that she is likely to implement. The fresh perspective and directness of the participants surprised her positively. Although she is happy with her part-European university background, so she could place and counteract on the Dutch/Belgian way of communicating.
The workers in the plant and in the office were happily surprised to see the efforts made by
the team to adapt to the local culture.
Respect was won, and vice versa.

Impact on the European professionals

The participants were surprised to recognise most of the features of entrepreneurship, although on a smaller level. Most of the issues at hand are similar with the European ones, and requires the same way of analysing and thinking. But most of the issues were quite basic and made them enthusiastic in finding solutions that were concrete and within reach to implement.

Follow up

For the next year, the CEO will send her monthly sales forecasts to the team to allow feedback and to keep in touch. The team stays available for any type of question. SharePeople will have formal monitoring contact twice a year, in order to update the actual results of the exchange. Obviously informal contact occurs throughout the coming years. A financial expert, Frank Koster, will assist Soriano in January 2009 to create a more sustainable accounting system.