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Esic Market Economics and Business Journal

Vol. 52, n.º 3, septiembre-diciembre 2021, e5235

Strengthening of peasant associations in the Tambo municipality through the transformation of traditional crops towards high added value fruits

Case study: Sacha Inchi Product of the “Sachatambo” Cooperative of the Municipality of Tambo, Cauca, Colombia

Diana Ximena Sánchez Tróchez*

Institución Universitaria Colegio Mayor del Cauca

dxsanchez@unimayor.edu.co

Orcid: https://orcid.org/0000-0003-0309-0673

Adriana Diago Ortiz

Institución Universitaria Colegio Mayor del Cauca

adiago@unimayor.edu.co

Orcid: https://orcid.org/0000-0003-1150-4792

Wilfred Fabián Rivera Martínez

Corporación Autónoma del Cauca

wilfred.rivera.m@uniautonoma.edu.co

Orcid: https://orcid.org/0000-0003-2888-7929

Laura Beatriz Potes Ordoñez

Fundación Universitaria de Popayán

laura.potes@docente.fup.edu.co

Orcid: https://orcid.org/0000-0002-3654-4726

Marly Viviana Navia Mera

Institución Universitaria Colegio Mayor del Cauca

marly_navia@unimayor.edu.co

Received: 29/09/2020; Accepted: 05/11/2020; Published: 13/09/2021

Abstract

Objective: This research is developed under the guiding question: What are the necessary elements for the transformation of traditional crops towards products with high added value?; from the theoretical perspective, the postulates of the modernization of agriculture of Schultz (1967) and organizational management of Chiavenato (2017) are assumed.

Methodology: It was based on descriptive research, under the criteria of a case study with semi-structured surveys that allow to know the prevailing situations, customs and attitudes through the description of the activities, processes and people around the Cooperative, as well as its potential market.

Results: The research proposes five elements based on agrarian economy that allow communities the transformation of traditional crops towards products with high added value, increasing their competitiveness, and concludes that organizations require strategies that highlight product attributes, and greater efforts in strategic orientation.

Limitations: The research findings can be extrapolated to organizations with similar characteristics, sizes and foci, among them, peasant companies and Colombian cooperatives interested in strengthening their agrarian economy. Instead, this analysis serves to gain a deeper understanding of the phenomenon in question, but with the possibility of replication in organizations interested in transforming the rural sector. However, it does not cover business fabrics of industrialized sectors.

Practical implications: The study is useful in areas of strategic direction and human resources management, allowing to visualize operational mechanisms for product innovation plans.

Keywords: Rural economy; product innovation; strategic direction; business management; peasant associations

JEL code: M10, P25

加强埃尔坦博市的农民协会向高附加值产品行业的转换。研究课题:哥伦比亚 考卡省埃尔坦博市与美藤果产品的合作。

文章摘要

研究目标:本研究是在以下指导性问题下开展的:将传统农物转变为高附加值产品的必要要素是什么?从理论角度出发,此研究会根据 Schultz (1967) 农业现代化和 Chiavenato (2017) 组织管理提出假设。

分析方法:本研究已描述性研究为基础,根据案例研究的标准,采用半结构化调查,应此调查可以通过对合作周围的活动、流程、人员及潜在市场进行普遍情况、习俗和态度的了解。

研究结论:本研究在农业经济学提出了五个要素,它们会允许社区将传统农业转变为具有高附加值的产品,因此提高其竞争力,并得出结论,组织需要突出产品属性的战略,并在战略方向上做出更大的努力。

研究局限:研究的结果被推断给具有相似特征,大小和焦点的组织,包括农业公司和有兴趣加强农业经济的哥伦比亚合作社。 相反,该分析有助于更深度的了解有关现象,但有可能得到那些对农村行业转型感兴趣的组织的否认。 但是这些组织不包括来自工业化行业。

实际应用:本研究在战略方向和人力资源管理领域的用途较大,因此允许机构操作可视化产品创新计划。

关键词:农村经济; 产品创新; 战略方向; 企业管理; 农会

JEL 分类号: M10, P25

1. Introduction

Society in general is in constant transformation, exposed to various technological, scientific and cultural developments and advances, which permanently promote a vision of change to become key players in productivity. This level of demand and competence makes every organization take strategic management actions that allow it to identify products that adapt to little-explored markets, considering the environment, its social impact, as well as the potential and real demand of the sector in which it is immersed. However, it is necessary to mention that the Colombian countryside and especially, in intermediate regions, rural communities continue to practice traditional agriculture from extractive and unsustainable methods.

In the same way, in recent years, initiatives that address this productive transformation have been consolidated, such as inclusive businesses whose purpose is the evolution of needs and gaps in sustainable, replicable and scalable opportunities, being one of the innovative business strategies that promote articulated work, strengthen value chains and propose a different way of approaching business models (Ángel Cano, 2013).

In 1967, Theodore William Schultz proposes a possible strategy to achieve this objective of productive transformation, through agrarian economies, which allow communities in the rural sector, an adequate transformation of traditional crops towards fruits of high added value, licit, visionary and useful, increasing the productivity, making them more competitive and providing them with a position in the market (Steenkamp et al., 2021).

In this vein, the Pyramid of Prahalad theory raises as an essential approach the need to stop seeing the poor as victims or as a burden and begin to recognize them as persistent people. Based on this approach, it is evident that there are growth and innovation possibilities for the Colombian rural sector and, of course, for regions with similar conditions (Hamel & Prahalad, 2018).

Now, El Tambo located in Colombia, specifically in the region of Cauca, 33 kilometers from Popayán, capital of the region, has an estimated population of 45,804 inhabitants (Ministerio del Interior y de Justicia, 2009). It is one of the largest municipalities in the region, eminently agricultural and forestry that has a large amount of water resources (three large basins: Patía, Cauca and Micay) (Concejo Municipal del Tambo, 2020; Obando, 2013).

It is a region, like Cauca and Colombia, supremely diverse in its physical, geographical, demographic structure and in its population and cultural development (Concejo Municipal del Tambo, 2020). It has been strongly affected by conflicts that arose in the vast majority, as a consequence of low income, lack of job opportunities to progress with dignity and lawfulness. Despite this, there have been several initiatives in the field of rural development proposed.

Therefore, the main problem addressed in this article is the lack of innovation in strategic management processes with an impact on the value chain of the rural sector; to study this phenomenon, the dynamics of rural initiatives such as the Cauca cooperative SachaTambo attached to SachaColombia (today SumaSach’a) are analyzed, being an Inclusive Agroindustrial Business Ecosystem Network for farmers interested in the industry, becoming, in addition, an international marketer. Accordingly, from the theory of modernization of agriculture proposed by Theodore William Schultz in 1967, it is pertinent to consider that not only land and working capital are sufficient to transform crops with high added value; instead, other management elements are needed to complement and leverage the strategic management efforts that have been taking place (Steenkamp et al., 2021).

The above statements contribute to the purpose of the research, in order to establish the guidelines of the strategic direction from the identification of strategic variables for the SachaTambo Cooperative according to its own context. This organization has achieved an increase in the number of associated families and the generation of environmentally friendly production alternatives, in turn, the interest of the community in taking the product and its derivatives to a higher level of social knowledge stands out.

The article is presented under six sections. The first section relates to Sacha Inchi, as a crop with high added value, in which the properties of the fruit and the way of working of the associated cooperatives are conceptualized. As a second aspect, the Theoretical postulates are presented, mainly supported by the Modernization of Agriculture theory proposed by (Steenkamp et al., 2021) based on the postulates of Schultz (1967) and other researchers related to the subject. Next, a descriptive, cross-sectional methodology is developed as a third component, with semi-structured surveys as a data collection instrument. The fourth aspect of the document is the development of field work and analysis of results, assessing the potential market and factors associated with productivity from tools such as Porter's Five Forces and the External and Internal Factors Assessment Matrix. The fifth component focuses on proposed strategic variables such as: promotional management, strengthening of cooperating communities, network process management, Human Talent management and marketing channels from the value chain. Likewise, it includes the management strategies that support the strategic management platform. Finally, the sixth section is presented, oriented to the discussion and conclusions that arise from the results obtained from the study.

2. Sacha Inchi, high value-added crop

The Sacha Inchi (Plukenetia volubilis), known as the millennial seed, is a plant of Amazonian origin, also named as Maní Jíbaro (Jíbaro Peanut) or Maní del monte (Mount Peanut). It is distributed in the Latin American tropics, specifically in southern Mexico, the West Indies, the Amazon and Bolivia (López et al., 2001).

Currently it has become a promising non-traditional crop with a productive cycle of 5 to 7 months, with possibilities of industrialization, high commercialization potential in national and international markets (Sachacolombia, 2017). In addition, it has an economic yield that helps mitigate the effects of the conflict and replace, to some extent, the illicit crops that for decades have caused social, economic and environmental problems (Wang et al., 2018).

Likewise, the seed has a special composition that makes it highly desirable in the nutritional, cosmetic and medicinal industries, due to the fact that the almond has high contents of proteins, amino acids, essential fatty acids (Omegas 3, 6, and 9) and vitamins, compared to other oilseeds. Contains between 25% and 33% protein depending on the variety (Aranda-Ventura et al., 2019).

This agroindustrial model constitutes an alternative for the substitution of illicit crops. In fact, due to the diversity that the thermal floors in Colombia promote and because it is found in this area of the Ecuador line, Sacha Inchi has established itself as a non-traditional crop with potential for Colombia; according to the Ministry of Agriculture and Rural Development, the area planted in the national territory has increased by 300% during the last three years (Bustamante & Muñoz, 2017).

Among the different methods used, there is cold pressing, a mechanical process by which the oil is extracted from the seed, free of chemicals. In this way, the previously cleaned seed is taken to the extractor cylinder, slowly subjected to pressure until reaching room temperature, achieving the oil that is packed in gallons, and decanted. Then, it is bottled through a filtering machine.

This model has the commitment and support of a group of companies such as Aliados Agroindustriales y Comerciales (AAC) that train and promote each of the groups in the value network, from planting to marketing of products.

Through a qualitative study, it was possible to determine the strategic variables focused on attracting investments that generate productive chains and dynamize the field, in such a way as to promote agro-industrial management and transformation, making Cauca and similar regions a gateway to economic entry, existing today about 30 hectares established in the different cardinal points of the Cauca region.

Despite the agronomic facilities for obtaining the almond, an insufficient use of the agro-industrial potential is evident, due to low technological levels, the lack of training of people at an individual and social level.

Due to the exposed situation, SachaTambo is created, an organization that promotes food safety, through the cultivation and industrialization of Sacha Inchi, stimulating the comprehensive training of associates and their families, through good agricultural practices, conservation of the environment, encouraging them to become members of the Cooperative; so that they empower themselves in the field to make it more productive and competitive.

As a network strengthening exercise, “Sachatambo” became associated with “SumaSach’a”, seeking to strengthen and expand as an inclusive business, which provides social development and economic growth to the Tambeña community, in an innovative and sustainable way.

With this, this product and the Sachatambo cooperative constitute a benchmark for other regions interested in rescuing ancestral practices, such as the cultivation and benefits of Sacha Inchi. It is these innovative projects and the strong trend towards advancement and change in society, which generate the need to prioritize strategic variables to implement sustainable business management towards business models under the figure of associativity or cooperativism in the rural sector.

3. Theoretical postulates

The research was supported by a series of postulates for the structuring of the strategic guidelines according to the rural context of the Sacha Inchi cooperative, taking as the main reference the author Theodore William Schultz and his theory of the Modernization of Agriculture, which focuses on the importance for nations of the transformation of the rural economy, as an important source of income for society, and as land and working capital, are not the only elements to achieve business success. That is to say, it is required to promote the knowledge, abilities and skills of peasant communities and other stakeholders, to take advantage of existing resources and potentiate agricultural activity (Steenkamp et al., 2021).

The demand for agricultural products is undergoing unprecedented changes, has increased requirements for high-value raw materials, processed and prepared products. Thus, the prospects for constant growth of value-added foods are an incentive for the development of agribusiness. They will be sustainable if they are competitive in terms of costs, prices, operational efficiency and other associated parameters. (Arango et al., 2020).

For this reason, companies must be evaluated to give direction to the strategies and guarantee their survival. Therefore, “strategic management” constitutes a tool that allows organizations to face the future in a more predictable way, helping to guide efforts towards realistic performance goals (Estrada et al., 2017). It is also a fundamental element in terms of “organizational design” as a process to continuously build and adapt the structure of the organization.” (Chiavenato, 2017).

Likewise, it is important to consider the three stages proposed by David (2013): the formulation, implementation and evaluation of the strategy; focusing on three phases, reviewing the external and internal factors on which current strategies are based, measuring performance and taking corrective action

Consequently, the design and implementation of strategic management processes require taking the foundations of the disciplines associated with the topic in question, but they are not functional, but rather adapt to the dynamics of the context, considering their particularities in relation to the needs and expectations of the environment. In practical aspects, to achieve the objective of this article, it was necessary from a collective exercise to identify variables necessary for the strategic platform, among which it is worth mentioning business management, understood as the evolution of new information and knowledge societies, which implies a global vision for the development of new strategies towards permanence in the market, customer satisfaction and sustainability (Pitre et al., 2020).

Likewise, the strengthening of participating communities was recognized as a determining aspect, from a cooperative vision, including the need for teamwork for solidarity, equity and social justice purposes. (Rivera & Labrador, 2013).

As a third element, it was determined that the management of network processes facilitates the contribution and generates a greater impact than individual work, among other aspects, due to the transfer of knowledge, the increase in working capital, and productive capacity (Ayaviri et al., 2017).

The fourth element addressed is the management of human talent, precisely because of the theoretical approach of Theodore William Schultz, who emphasizes that the land and working capital are not enough to make agricultural activity productive, it requires the development of skills and techniques that allow in an articulated way to consider all the external and internal agents associated with the activity to achieve high impact results, which is not possible if the human factor is not considered as a determining factor in the process. In this case, the management of human talent is essential due to the connotation that the growth of families associated with the cooperative has, the personal and work growth that being part of the cooperative means for the team (Chiavenato, 2017).

Finally, the last element necessary to consider as the main axis in the strategic direction for the case in question, are the marketing channels from the value chain, because the organization can bring its products to customers in the most efficient and effective way, considering that the production is guaranteed in most cases, but its sale is not (Rogel & Yumaria, 2019).

4. Methodology

This research aims to identify precisely and directly those aspects that are essential to know and contribute to the internal and external analysis of the SachaTambo Cooperative, in addition to identifying alternative markets that allow increasing the commercialization of the derivatives of the Sacha Inchi fruit, especially the oil, being a point of reference for other organizations in similar sectors.

Thus, descriptive research is the most convenient type of research to describe the population, situation, or phenomenon around which the study is centered. It seeks to provide information about what, how, when, and where of the research problem, without giving priority to answering the “why question” of the problem. As its name says, this way of investigation “gives a description”, but does not give an explanation (Hernández, 2018). From the perspective of the method, the case study appears as the research method par excellence in this descriptive logic. This tool made it possible to collect the main strategic variables to consider in an adequate business management of the Sacha Tambo cooperative (Álvarez, 2009).

The descriptive research facilitated the collection of data, for its subsequent analysis, based on knowing the prevailing situations, customs and attitudes through the exact description of the activities, processes and people around the Cooperative, as well as its potential market, exercise that had the participation of the administrative team of the organization and associated families.

Direct sources were addressed through a semi-structured survey, prepared in accordance with the criteria for characterizing the products. This allowed to validate the information obtained by secondary sources. Regarding indirect sources, they were systematized by means of tables or matrices, using descriptive statistics indicators to support field observations, the opinions of experts and the work team, regarding the diagnosis of the collected data.

It should be noted that, in the field work, the information was collected through two populations under study. The first is made up of potential consumers from socioeconomic levels 4, 5 and 6 from the city of Popayán, capital of the Cauca region. This population group is more interested in the acquisition of organic-based products, so it was intended to identify their interest in the consumption of sacha inchi oil. For the study, a sample size of 164 surveys was established, with a confidence level of 95% and a margin of error of 5%. These surveys were systematic through the SPSS program. The second population was the SachaTambo community made up of 140 duly surveyed associated families, given the importance of networking and the impact on meeting organizational objectives. With them, elements were approached from the reading of the context, finding or highlighting the variables that are then worked on later.

5. Development of field work and analysis of results

This session describes the results of the research from the qualitative study carried out by the researchers. It is divided into 2 sub sessions according to the groups approached. In the first session, the results obtained from the potential market are analyzed, specifying on demographic aspects, tastes and preferences. With this, it is intended to understand elements of perception that allow for this type of exercises to consider variables determinants in the design of promotion and marketing strategies, in order to make coherent decisions about the image to be transmitted, focused on an organic product, produced in the Colombian countryside and by peasant families under the cooperative system. In a second session, elements related to the operation and management of the cooperative are covered according to information from the associated families and their legal representative.

5.1. Characteristics, preferences and purchase frequency of the potential market

The main factor that must be taken into account in identifying the potential market is knowledge of its specific characteristics, such as preferences, purchase frequency, ability to pay and affinity for the product.

It was possible to show that the population under study, made up of 62% men and 38% women, with an average age between 30 and 41 years (33%), 18 and 29 years (30%) and over 42 years (37%), perceive an average monthly income between 1.8 and 2.7 Legal Minimum Wages in force, with the Current Legal Minimum Wage of $ 877,802 pesos for the Colombian case 2020.

Now, these types of products are associated with the new trend of snackification, a phenomenon that transforms traditional food into a more friendly and practical format, generating market opportunities. Among its main benefits are the contributions and perception of consumers towards health care (Jodar Marco, 2018).

In this way, 67% of those surveyed indicated that they perceive consuming this food as positive for their health because it contributes to their nutrition, while 33% express that its consumption is associated more with a preference of taste than care, a result that can occur due to lack of knowledge of its properties.

Another of the variables necessary for the adequate commercialization of the product, lies in the knowledge of the frequency of purchase of healthy products related to snacks, a behavior that could be verified with the research, finding that people are increasingly aware of taking care of their diet, their body and therefore their health. It is observed that 42% of respondents expressed taking care of themselves on a daily basis, consuming healthy foods, essential data to enhance the knowledge and distribution of these products, taking into account the aforementioned benefits of Sacha Inchi and its derivatives, especially oil.

There are then main characteristics that prevail for consumers and that must be taken into account for their adequate promotion. Meanwhile, and regarding the characteristics that predominate when choosing a food product, there are nutritional supplements with 42%, price 28% and 30% between presentation and quality. These factors allow brands aimed at healthy products to have a greater degree of acceptance by the market, as is the case of Sachatambo.

However, it is also required to analyze the knowledge of the target audience regarding the nutritional properties, use and benefits of Sacha Inchi. In this regard, it was determined that 60% of the surveyed population is unaware of this millennial fruit. However, within the strategies to be developed for innovative products with high added value like this, is the design of mechanisms that promote, disseminate, and form the product in the potential market, thereby achieving the use of this seed, not only from its health and beauty benefits, but also as a way to support the national production from the rural sector.

Likewise, it was necessary to determine if the potential public knew products that contain the fruit, finding that 72% do recognize it, although it is not specified in what type of presentations. Similarly, 93% of those surveyed expressed that they purchase products that provide health, beauty and well-being at the same time.

Regarding the price to pay for acquiring these products, 53% responded that it would be between $40,000 and $53,000 Colombian pesos, followed by 22% saying that it would be more than $54,000 Colombian pesos and 24% would pay less than $39,000 Colombian pesos according to presentations and weight of the product, which would allow the SachaTambo Cooperative and brands from similar sectors, important possibilities for the development of the consumption of this seed and its derivatives, finding an economic valuation for the products that make up or contain the greatest amount of benefits.

In relation to the place or places that they would like to buy these products, 80% of those surveyed prefer to find them in supermarkets and the Internet, while 20% prefer it in specialized stores.

Now, regarding the presence of substitutes perceived by the population under study, 76% responded that they do know them; however, for care and beauty of an industrial type and not of an organic type, which shows its character of indirect substitute. Finally, the most important factors to assess for people to become aware and improve their diet according to the population addressed, 50% is related to creating healthy habits and lifestyles, while the other 50% express the need to increase education in food and nutrition.

5.2. Factors associated with productivity from Porter’s five forces

The analysis of the five forces of Porter has an analytical approach to collect important information against the design of the strategic plan, facilitating the development of a strategy to compete in better conditions. This analysis monitors the factors that influence the long-term profitability of the business, as well as the elements that have a direct impact on the organization and therefore on profitability.

That is, it provides information on market trends in order to identify opportunities, know the company’s environment to anticipate actions and recognize competitive advantage (Jaya & Yuliarmi, 2019).

F1. Bargaining power of customers: for the Cooperative, the recognition of the Sacha Inchi seed has been a fundamental pillar in associating more farmers and getting new clients, as new business units emerge. These make the crops massify and are in constant competitiveness. By having more options, it gives users greater possibilities and facilities to purchase the products; the profit margins remarkably demonstrate purchasing power and how customers are willing to pay for good quality products at a fair price based on their bargaining power. At present, the healthy food market, a category in which Sacha Inchi is found, is showing greater growth. According to data from the consulting firm Nielsen, healthy products represent 7% of the family basket in Colombia and their sales have increased 12% in the last year. It is observed then that the interest in taking care of oneself through healthy eating is more than a fad and has become a great macro-trend of consumption in the world (Fmcg & Retail, 2018).

F2. Bargaining power of suppliers: SachaTambo has a high bargaining power of suppliers, because SachaColombia supports Business Units with allies such as BioAzul, Biorrefinería, InnovaSemillas, SachaFormadores SAS, SumaSacha, Proalco, SachaConsultoría, Soluciones Microbianas del Trópico, Del Monte Agronegocios Inclusivos, Universidad de Santander and logyca, which makes it easier for them to work together with specialists in all the issues and requirements covered by the cultivation of Sacha. For this reason, suppliers in this industry are considered relatively strong. It is one of the factors that gives the cooperative great strength since it relies on networking for the transfer of technology in cultivation and in general in the Sacha Inchi production chain.

F3. Threat from new competitors: Within the market, entrepreneurs who seek the formation and creation of these businesses independently of the Cooperative are identified, without taking into account the processes that have been developed to guarantee a high-quality product; there are also strong entry barriers for competitors, due to the multiple benefits that other products fail to supply, however, it depends on their production chain, their environmental and social impact. This factor provides a competitive advantage related to the impact of the company on the environment. Although there is a large number of competitors, they do so independently, while the Sacha Inchi cooperative performs a social task, a factor that becomes a differentiation in the market and a favorable aspect in the purchase decision.

F4. Threat of substitute products: Sacha Inchi oil is in the category of functional oils; among the main similar products and substitutes for Sacha Inchi are olive oil, avocado oil and coconut oil. Although these oils offer health benefits, Sacha Inchi oil is highly nutritious due to the amount of protein that is 33% and its high index of omega 3 and 6 fatty acids with a percentage of 48.6% and 36.8 % respectively, which makes it the best oil for domestic human consumption, as it strengthens the immune system and delays the arrival of glucose into the blood. Consequently, Sacha Inchi has comparatively superior properties than other substitute products, thereby achieving significant benefits for a complementary diet (Gómez & Montaña, 2019).

F5. Rivalry among Existing Competitors: in the market in which the Cooperative is located, the rivalry of the competitors is significant, in terms of the prices they handle, since the vast majority, the other companies do not make use of the machinery and technology that the transformation of the seed required, which makes it easier for them to have prices below the SachaTambo Cooperative. Table 1 shows the position in which it is with respect to other substitute products.

Table 1. Competence Analysis

COMPANY CONCEPT

SACHA INCHI OIL

OLIVE OIL

FISH OIL

COCONUT OIL

Advertising

Weakness

Strength

Strength

Weakness

Recognition

Weakness

Strength

Strength

Fortaleza

Pricing Policy

Strength

Strength

Weakness

Strength

Variety of products

Strength

Weakness

Weakness

Weakness

Machinery and equipment

Strength

Strength

Weakness

Strength

Environment preservation

Strength

Strength

Weakness

Strength

Source: Own development.

It is observed that the product has the necessary tools for a good recognition in the sector, finding as strengths, its price policy, the variety of products, the proper use of machinery and equipment, guaranteeing efficient and effective processes, and finally preserving the environment by generating ecological products and in accordance with the care of the environment. However, given its youth, it requires strengthening advertising actions and increasing its level of recognition in the market.

5.3. Factors associated with the external and internal environment

EFA. External Factors Assessment Matrix. Opportunities and threats were identified by the environment, thus managing to determine which should be the most successful decisions for each situation in relation to the product and the organization, as shown in tables 2 and 3.

Table 2. Rating Table.

RATING TABLE

1

GREATER THREAT

2

MINOR THREAT

3

MINOR OPPORTUNITY

4

GREATER OPPORTUNITY

Source: Own development.

Table 3. External Factors Assessment Matrix (EFA).

EFA VARIABLES

Opportunities

Weight

Grade

Result Weight

Investment in state-of-the-art equipment

0.07

3

0.28

Employees committed to the organization

0.06

4

0,18

Recognition in the market

0.09

3

0.36

Access to new markets

0.10

4

0.4

Social responsibility

0.11

4

0.33

Lifestyle improvement

0.10

3

0.4

Product quality

0.06

4

0

SUBTOTAL OPPORTUNITIES

0,59

 

1.95

Threats

 

 

 

Duplication of oil with lower quality

0.11

1

0.11

Competitors with strong advertising strategies

0.10

2

0.2

Increase in inflation, reflecting decrease in purchasing power

0.06

2

0.12

competition with cheaper prices

0.08

1

0.08

The other companies of the substitutes are recognized at the regional and national level

0.06

2

0.12

SUBTOTAL THREATS

0.41

 

0.63

TOTAL

1.00

2.58

 

Source: Own development.

IFA. Internal Factors Assessment Matrix. It was possible to evaluate economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive information, in order to strengthen the organization against its competitors, as shown in table 4.

Table 4. Internal Factor Assessment Matrix (IFA).

IFA VARIABLES

STRENGTHS

WEIGHT

GRADE

WEIGHED VALUE

Good service provision to both partners and customers

0.11

4

0.44

Minimum safety requirements in the Cooperative

0.08

3

0.24

Adequate infrastructure

0.09

4

0.36

Ideal staff to provide the service

0.06

4

0.24

Variety in products and with high quality standards

0.09

4

0.36

for customers.

0.07

3

0.21

Visible, affordable, and safe location point for customers.

0.09

3

0,27

SUBTOTAL STRENGTHS

0,59

 

2.12

WEAKNESSES

 

 

 

Fit machinery technology

0.09

2

0,18

Low sales strategies

0,04

2

0.08

Lack of a portfolio of services

0.05

2

0,1

Informal competition

0.06

1

0.06

Grant discounts and promotions

0,04

2

0.08

Low advertising

0.05

2

0,1

Lack of administrative planning since it does not have a defined organizational structure.

0.08

1

0.08

SUBTOTAL WEAKNESSES

0.41

 

0,68

TOTAL IFA

1

 

2.8

Source: Own development.

As can be seen in the previous chart, the weighted weight between strengths and weaknesses reaches a sum of 2.8, of which the strengths represent 2.12 and are above the weaknesses, obtaining a sum of 0.68; this indicates that, if it is possible to give greater support and dedication to the strengths, the weaknesses will be able to be overcome with greater efficiency and thus be able to project the Cooperative to be recognized in both the regional and national markets.

BCG. Growth Analysis – Participation. It was possible to prioritize resources between different business areas or Strategic Analysis Units. The Boston Consulting Group-BCG matrix presented in table 5 allows classifying the cooperative’s portfolio considering its cash flows and growth, with products such as stars, cows, dogs or questions prevailing according to the growth rate and market share (Arias Mesía, 2013).

Table 5. Growth Analysis (BCG).

Star

Sacha Inchi Oil

X 250ml.

Dilemma

Sacha Inchi Beer

Cow

Sweet snacks, salt

Chocolate and salt-lemon

Dog

Protein Cake

Sacha inchi flour

Source: Own development.

As the above table indicates, it can be said that SachaTambo has dominance over the market with its star product, Sacha Inchi oil in 250 ml presentation, being the one that generates the highest income.

SWOT: Through this matrix, relevant aspects were identified from information obtained by the cooperative community, as shown in table 6.

Table 6. SWOT Matrix.

 

Opportunities:

Threats

SWOT MATRIX by Cooperativa Sachatambo

1. Investment in state-of-the-art equipment.

2. Wide markets to enter.

3. Recognition in the market for its very high quality.

4. Contribution to the care and preservation of the environment.

5. Users willing to pay for a good service.

6. Good Customer Relationship

7. Little development of the product in the market and little diversification.

8. Global trend for the consumption of natural products.

9. Increase in exports and destination countries.

1. Loss of customers

2. Appearance of new Cooperatives.

3. Competitors with strong advertising strategies.

4. Competition with cheaper prices.

5. Informal competition.

6. Presence of substitute services.

7. Number of concentration of suppliers.

Strengths

SO strategies

ST strategies

1. Sacha Inchi oil has medicinal and nutritional properties due to its high content of omega 3,6 and 9 compared to other oils.

2. Strategic geographic location due to its climatic and soil conditions, which favors the cultivation of this seed.

3. Seed with rapid growth and organic harvest.

4. Adequate physical infrastructure: partners with land for the cultivation of this seed.

5. Product quality

6. Suitable personnel, with knowledge, experience and values.

7. Fit machinery technology.

8. Variety of quality products.

9. Good relationship with customers and suppliers.

10. Existence of information that supports traditional uses, benefits and applications.

(O3, S1-S8) Take advantage of the diversity of properties of Sacha Inchi and trained personnel to generate one or more new products that satisfy the current natural trend.

(O9, S3) Use the rapid growth of the seed and its transformation to enhance the foray into different markets.

(O8, S2) Take advantage of the location of the Cooperative to promote the cultivation of the seed.

(O6, S10) To take advantage of the loyalty of the clients towards the company, in the quality of the products and services to increase the participation in the market.

(O4, S9) To encourage partners, suppliers and the community in general to care and preserve the environment through good ecological practices.

(T7, S7) Find nearest providers to reduce costs.

(T4, S5) Not to focus solely on price competition, but to maintain and improve the quality of raw material and its derivatives, as well as services and customer service.

(T5, S4) Strengthen and publicize the points in favor of the Cooperative against the competition, to attract more customers.

(T6, S6) That the good relationship with customers, partners and suppliers serve as a reference, so that they are the bearers of indirect advertising.

Weaknesses

WO strategies

WT strategies

1. Few sales strategies.

2. Lack of a portfolio of services.

3. Lack of discounts and promotions

4. Advertising Shortage.

5. Lack of organizational structure.

(O5, W3) To incentivize customers with discounts, promotions or daily, weekly or monthly offers.

(O2, W2) Implementation of the portfolio of services to make agreements or alliances with companies.

(O7, W4) Presence in new communication channels to create brand awareness in customers.

(O1, W5) Design and implementation of the organizational structure, for better performance within the company.

(T1, W1) To create a suggestion box to find out what customers’ needs are and thus be able to satisfy them.

(T3, W4) To create advertising and marketing media to be recognized for the products and services provided.

(T5, W5) To improve the level of training of employees, in order to improve service delivery.

(T2, W1) To make clients aware that the Cooperative meets the necessary requirements to provide an excellent quality service.

Source: Own development.

Strategic Variables: taking as a reference the factors associated with productivity and other elements analyzed, the most representative strategic variables for the Sacha Inchi fruit are presented, whose production and marketing chain is done through networking under the cooperative model, shown in Table 7.

Table 7. Strategic Variables.

Objectives

Strategies

To increase market share, publicizing the transformation of the product (oils, snacks, protein cake) and promoting its consumption.

S1. Promotional management: To design advertising campaigns for all the products that are offered, taking advantage of the rapid growth of the seed, its transformation and the diversity of its properties and benefits that Sacha Inchi has, the location where the crops are grown, and increase the incursion into different markets.

To expand the community of partners in a sustainable way, spreading the importance of the crop, generating awareness about its consumption.

S2. Strengthening cooperating communities. To implement a partner platform that allows the support for the production and commercialization of the product and its derivatives.

To guarantee an organizational structure focused on collaborative work under the figure of a cooperative

S3. Network process management. To design a manual of functions, procedures, definition of policies, rights and duties of associates and personnel that are currently directly and indirectly linked to networking.

To promote the development of human talent in the associate community.

S4. Human Talent Management: To design and implement a human talent management plan articulated to the organization’s strategic platform.

To determine the marketing channels of the product based on the value chain

S5. Marketing channels from the value chain: To design the portfolio of services to carry out business agreements or alliances.

To structure the value chain of the product and its derivatives in order to focus market segmentation.

Source: Own development.

Management strategies: As a complement to the previous ones, table 8 presents a strategic management grouping that allows addressing six main fronts of organizations of this type.

Table 8. Strategies to implement.

Strategy Type

Strategies to implement

Promotion and communication strategy

Web presence of the product and its derivatives, as well as the organizations that represent them (history, policies, mission, vision), allowing to attract new clients, increase active partners, generating closer ties with interested communities and potential consumer population.

Customer and partner service strategy.

To determine the perception of the client and associates regarding the products and services offered, creating an after-sales service, through a follow-up of telephone calls, suggestion box, satisfaction surveys by email or personal mail, identifying the processes (distribution, quality, presentation, attention, price, delivery times and agreed conditions), in order to make preventive and corrective decisions to improve in order to obtain a significant market share.

Referral plan strategy

To strengthen the network of partners and customers, obtaining benefits from membership, permanence and consumption of products through the web.

Strategy of a sales team

To have a reliable marketing team, based on ethics and values that allows to enhance and promote collaborative work, whose investment is profitable, and its sales are increased annually.

Environmental strategy

To raise awareness regarding the conservation and preservation of natural resources.

To train the immediate community regarding the importance of their potential.

To make an agreement with state entities that allow the recognition of this activity.

Financial strategy

To have a database of suppliers that comply with regulations, guaranteeing quality in raw materials, machinery with competitive prices.

To access soft loans for associates in order to leverage production, marketing and after-sales processes

Source: Own development.

6. Discussion and Conclusions

As has been commented throughout this document, one of the subsequent purposes of the research is the contribution of new knowledge in the field of strengthening peasant associations; in this vein, the information collected allowed the development of strategic planning exercises, according to the theoretical postulates of the management from a market-oriented stance, which values the characteristics of the communities and the forms of articulation with stakeholders.

The above is of interest in the academic field given the possibility of learning from this exercise that recognizes the added value not only from the characteristics of the product, but also from the particularities of the organizational history, its processes and mechanisms of articulation. The analyzes carried out show the urgent need to strengthen the promotion and dissemination exercises given that the products have important characteristics and added values with potential that the market does not know.

The rural sector faces wide-ranging challenges, which invite the generation of sustainable alternatives for the eradication of poverty, violence and the promotion of healthy coexistence. To do this, one of the strategies to promote participatory work is through the system of associates such as cooperatives, finding among the most relevant aspects, the focus of resources on raising awareness and training of farmers.

However, to achieve the transformation of crops with these characteristics, aimed at little-explored markets, the organization must strengthen brand management in the identifying aspects of the brand and in the message that is transmitted to the target market, in addition to making agreements or business alliances. Similarly, it must analyze the internal and external environment associated with the product and its derivatives, in order to identify controllable and uncontrollable variables.

Likewise, it was possible to demonstrate the need to prioritize actions in products with higher attributes over the competition and determine the participation of others with little impact on the market, either due to ignorance of it or because it is considered generic. That is, it requires making these types of companies more visible, through the implementation of the portfolio of services to make agreements or alliances with companies, develop new communication channels to create brand awareness in customers, have a functional organizational structure that promotes performance efficient and effective, as well as decisions in the management of human talent focused on results in the quality of the service.

It is then that the success of business management is associated with the determination of strategic variables. In this case, the study identified five as the most important: S1. Promotional management, S2. Strengthening cooperating communities, S3. Network process management, S4. Human Talent Management and S5. Marketing channels from the value chain.

Management strategies that support the organization’s strategic management platform and that require constant monitoring were also assessed. In this case, the first-order strategies classified with the community were: a) promotion and communication strategy, b) customer and associate service strategy, c) referral plan strategy, d) strategy of a sales team, e) environmental strategy and f) financial strategy.

Now, the administrative and management tools that were used in the strategic direction of the Sachatambo cooperative have the possibility of replication in organizations with similar characteristics, as well as in small enterprises interested in transforming the rural sector, considering that these communities have historically carried out associativity work, but they have not had enough administrative tools for their organizations to consolidate.

This article opens new lines of research, given that agricultural products with high nutritional content propose studies oriented towards the construction of tools for social and economic development in the territories, due to their great international demand and low level of recognition. Likewise, they are an important contribution to the construction of peace in the country since they are alternatives for income and employment. Therefore, the study of collective processes around products of this nature constitutes one of the topics of greatest academic importance and social relevance.

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* Corresponding author. Email: dxsanchez@unimayor.edu.co


Citation

Sánchez Tróchez, D. X., Diago Ortiz, A., Rivera Martínez, W. F., Potes Ordoñez, L. B., & Navia Mera, M. V. (2021). Fortalecimiento de asociaciones campesinas del municipio del Tambo mediante la transformación de cultivos tradicionales hacia frutos de alto valor agregado. Esic Market Economics and Business Journal, 52(3), e5235. DOI: 10.7200/esicm.168.0523.5

ISSN 0212-1867 / e-ISSN 1989-3574
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