Case Study The Mechanical Engineer Turned Abattoir Owner

CASE
STUDY
I. PROBLEM TITLE
The Mechanical Engineer Turned Abattoir Owner
II. STATEMENT OF THE PROBLEM

1. How can Mr. Gutierrez be able to establish his branch of business in his
desired locations within his budget?
a. What are the factors that are needed to be considered to assure his
profitability?
III. OBJECTIVES
1. Short Range
a. To give consumers a fresh and sanitized livestock to make the business
be patronized by the people.
2. Long Range
a. To expand and have branches especially in location that has high
profitability rate.
IV. CAUSES
1. Despite of having a backyard slaughter house in Baguio, Pangasinan, and
La Union, Mr. Gutierrez still wants to establish his business in those
location to provide its people the products that secure the health of every
consumer.
2. For the main purpose of earning higher sales and more importantly higher
profit.
3. Sonny wants to attain full capacity of his own business to improve its
general operation.
V. EFFECTS
1. In perspectives of sonny, he will earn high profit by expanding his
slaughter houses and improve its operations.
2. In consumer’s perspectives, the availability of livestock will be much visible
in the market.
VI. STATISTICS
1. Population size in desired location:
a. Baguio
b. Pangasinan
c. La union
Population Size in desired location

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000 2,956,726
1,000,000
500,000 345,366
786,653
0
Baguio Pangasinan La union
Population
The graph shows the different population size from the desired location of
Mr. Gutierrez. Baguio has 345,366, Pangasinan has 2.956,726, and La Union
has 786,653 individuals.
2. Daily Expenditure
Daily Expenditure
400
350
300
250
200
359 359
150
100
58.5 58.3 58.3
50 119
0
Baguio Pangasinan La union
Daily expenditure Food Allowance
The graph shows the daily expenditure and food allowance of every
individual on the desired locations of Mr. Gutierrez. Per day, every person in
Baguio has a minimum budget of Php 119 and Php 58.5 of it is allotted for
food. In Pangasinan, they have Php 359 and Php 58.3 of it is allotted for food.
While in La Union, they also have Php 359 and 58.3 of it is for food.
VII. ANALYSIS
1. Possible income per month:
a. For Baguio
86,341 - Population (345,366/4)

X 58.5 - Food allowance
5,050,948.50 - total expenditure per family for food allowance
X 30 - Days per month
151,528,455 - sales of Sonny per month
÷ 40,000 - expenses per pig
3,788.21
X 300 - target quantity of products to be sold
1,136,463.41 - Income per month
 If Mr. Gutierrez put his business in Baguio city which has a
345,366 population and approximately has a 86,341
families with a daily expenditure for food allowance of
58.5, Mr. Guiterrez will come up with a monthly income of
1,136,463.41.
b. For Pangasinan
739,181 - Population (2,956,726/4)

X 58. 3 - Food allowance
1,292,827,569 - sales of Sonny per month
32,320.69
9,696,206.79 - Income per month
 If Mr. Gutierrez put his business in Pangasinan which has a

2,956,726 population and approximately has a
739,181families with a daily expenditure for food
allowance of 58.3, Mr. Guiterrez will come up with a
monthly income of 9,696,206.79.
c. For La Union
196,663 - Population (786,653/4)

X 58.3 - Food allowance
343,964,024.30 - sales of Sonny per month
8,599.10
2,579,730 - Income per month
 If Mr. Gutierrez put his business in La union which has a

786,653 population and approximately has a 196,663
families with a daily expenditure for food allowance of
58.3, Mr. Guiterrez will come up with a monthly income of
2,579,730.
* Per family consist of four (4) members.
VIII. ALTERNATIVE COURSES OF ACTION
1. Opportunity Cost
The professionalism of Mr. Gutierrez as an educated Mechanical

Engineer, instead of just focusing on his abattoir business to generate
more capital without incurring another expenses.
2. Full Capacity
Attaining full capacity of currently operating slaughter houses by

Mr. Gutierrez to even deliver meat products up to the stated locations.
IX. CONCLUSION/RECOMMENDATION
 With a possible monthly income of 1,136,463.41 in Baguio, 9,696,206.79

at Pangasinan, and 2,579,730 in La union. Mr. Gutierrez must push his
business for he can regain capital in just 5 to 8 months.
 Sonny can focus on expanding his business at Pangasinan. For he can have
a profit of 2,579,730 and Pangasinan has huge difference in population
which is 2,956,726 compose of 739,181 families in total.
 There is a possibility that the given data of possible incomes would be
better and expenses would much lessen if Mr. Gutierrez can have a full
capacity and management of his slaughterhouse in his desired location.

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CASE

II. STATEMENT OF THE PROBLEM

Population Size in desired location

Daily expenditure Food Allowance

1. Possible income per month:

86,341 - Population (345,366/4)

739,181 - Population (2,956,726/4)

 If Mr. Gutierrez put his business in Pangasinan which has a

196,663 - Population (786,653/4)

 If Mr. Gutierrez put his business in La union which has a

VIII. ALTERNATIVE COURSES OF ACTION

The professionalism of Mr. Gutierrez as an educated Mechanical

Attaining full capacity of currently operating slaughter houses by

 With a possible monthly income of 1,136,463.41 in Baguio, 9,696,206.79

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