Established during the last quarter of 1983, CLARSON ENTERPRISES,  INC., started as single proprietorship engaged in the business of  trading  buri furniture, basket wares and handicrafts. The President, Clarito F. Fruelda, started the business with an initial capital of about fifty thousand pesos (P 50,000.00) or US$ 5,000.00 then. With a manpower complement of three, it grew to what it is today.    

The Company's first customers were from Australia. It gradually expanded its market to the  United  Kingdom,  the European Community and  the USA.  With  a very strong market  demand during 1984 to 1988, sales  always double that of every preceded year.    

The  Company was incorporated last May 21, 1986  with  an authorized capital of           P 4,000,000.00 (equivalent to US$ 250,000.00 in 1986). In 1987, the Company ventured into  rattan  furniture production. It operated two rattan furniture plants and a buri processing warehouse and administrative office. With these  plants, sales in 1988 went to an all time high  of   P 64,000,000.00 or US$ 3,200,000.00.    

In  1990,  a  very strong typhoon  substantially damaged  both rattan  plants and due to a very low market  demand,  the Company rehabilitated and operated only one rattan plant and the buri/basket ware processing warehouse. Later,  it sold the other badly damaged plant.  To date, the Company still owns one rattan furniture production plant and one buri/basket ware warehouse which also serves as its administrative office.    

The  current authorized capital stock of the  company  is  TEN  MILLION PESOS    
(P 10,000,000.00)  which was approved last August 1995 by SEC.    

NATURE OF BUSINESS:    

 Rattan furniture manufacturing and exporting    
 Export of buri and bamboo furnitures, basket  wares, handicrafts, etc.    
    

CURRENT MANPOWER COMPLEMENT:    

 Rattan/buri finishing plant    =    35 personnel    
 Administrative office           =       7 personnel    
 Rattan contractual finishers =   12 personnel    
 Sub-contractor manpower      =  300 workers    
    

PRODUCTION SETUP:    

Production  of both rattan, buri, bamboo  furnitures  and basket wares are done by sub-contractors. Quality control is done through in-process inspection  of the products at the sub-contractors' production area  and then final  quality inspection of the finished product inside the plant.  Sub-contractors’ production is monitored daily to ensure that the product being produced conforms with the company quality standards.    

A  company assisted production  manpower complement of  12 workers  are doing  in-plant production to assist and produce  items which need critical  control and supervision to create a superb product.    

Final finishing of the product is done inside the  plant to  assure uniformity and high quality of  the finished product, i.e, lacquering, painting, glazing and the proper attachment of the necessary hardware on the product.    

MARKETING:    

1. Structure and Promotions:    

Selling  is  done  direct to prospective  buyers  abroad through direct contact with the buyers' procurement officers  who normally are the company Presidents and  or Marketing Directors  themselves. Through this direct contact, exchange of ideas, and innovations are  undertaken  immediately  as the channels of communication are direct.    

Marketing the products is done principally by the Company President, who attends to all buyer-importer inquiries and backed by the Administrative personnel. Reliable communication  facilities  like  fax machines, direct dialing telephones, and lately through  the INTERNET provide an efficient way to correspond with  the buyers.    

Product photos and brochures are especially made for each buyer-prospect to meet their particular needs and provide the  technical information such as product descriptions, dimensions, pricing and loadability of the product in  a standard container box. New products are either designed by the buyers themselves or produced and designed by the company's own staff. Joining product showcases and fairs is a necessity to  promote the products to would be buyers.    
    
2. Marketing strategies:    

Product  pricing  and  quality as a standard  marketing strategy  is being observed, wherein somebody ensures  a  good  and  high quality product with a competitive price to enable the buyer-importers to compete at their own markets.    

Meeting delivery/shipment  schedules  could not be compromised and buyers-importers are  updated with information about the status of shipment for their information and reference.    

3. Pricing structure:    

Product prices are usually quoted in US dollars, ex-Cebu factory, Philippines, thus, other documentation requirements and extra product markings and or tags required to meet a particular market demand are charged to the  buyers.  These add-on costs to the buyers are agreed upon  during  sales negotiation.    

Quoted prices are normally guaranteed against any change for one (1) year. Price adjustments are done only in extreme cases  wherein production costs  could not allow further  sale  of  the product at previous quoted prices.  No price adjustments are done when  orders had been  fixed and  running  in production.    
    

4. Market Distribution:    

 a.   USA                              = 20 %    
 b.   United Kingdom  and the EC    = 75 %    
 c.   Canada                             =  3 %    
 d.   Australia                          =  2 %    

5. Terms of payment:    

Terms of payment is by swift wire transfer, 50% upon acceptance of the order and the balance upon loading as evidenced by the sales invoice which are faxed to the customer. Payment is done through the banking facilities available by telegraphic transfers  to the account of  the exporter. Payment through irrevocable letters of credit maybe arranged on a case to case basis. Certain  Central bank requirements are first to  be meet before any transaction could be done with foreign buyers.    
    
PRODUCTION PROCESS:    

1. Exporter and buyer prepares and signs a Pro-forma Invoice or an Order sheet as their common reference in producing the items and for reference in transmitting payments.    

2. Based on  the  pro-forma invoice  or  order  sheet,  the exporter, prepares Job orders to  sub-contractors who will do the initial production process  of every item ordered.    

3. In process quality inspection of the product ordered will continuously  be done by the quality control  workers  of the exporter until such time that the product has been finished as prescribed in the Job order.    

4. The  semi-completed product is brought inside  the  plant (if it’s done outside) or  brought  to  the  quality inspection  area for final acceptance of the  item as  prescribed in the Job order.    

5. The  accepted  product is then forwarded to  the  finishing section for final application of the product  finish  as required by the buyer.    

6. After finishing the product, it is again inspected by the finishing quality inspectors regarding acceptability of the product.    

7. The  finished  product  is wrapped with  Kraft  paper  or whatever  wrapping material the buyer has  required  and then loaded to the assigned container boxes or vans.    

8. The detailed production process is as follows:    
    
Production of actual product prototype or sample. Based  on the prototype approved and  accepted,  the following processes are observed:    

a. Raw materials procurement and preparation that includes cutting, bending and rough sanding.    

b.  Framework assembly    

c.  Attachment  of minor parts and binding  of  the joints  with either leather, rattan split  and or other materials as required.    

d.  Rough   sanding,  smooth  sanding   and  final sanding.    

e. Finishing ( includes lacquering or painting and re-sanding until the finish is smooth and  the colors are acceptable.    

9. In  all  or  any  of the processes  being  done  by  each production  group  or section, quality  inspectors  are assigned  to check on product quality before it is being  further passed or processed to the next  section.    

RAW MATERIALS:    
    
 The  structure of each furniture or basket wares  may  contain any or all of the following materials as  principal  product material:    

 1. Rattan - either as round poles, halve-poles, or split    
 2. Buri Sticks - as is, or split.    
 3. Bamboo - round or split    
 4. Wood ( plywood of lumber) - kiln dried    

 In  accenting  or  enhancing the  product  qualities  and aesthetic value,  the following or any of the  materials  below are added or used:    

 1.  Abaca    
 2.  Shells    
 3.  Coconut parts such as shells, midribs, leaves, trunk  and  spadix, axils, etc.    
 4.  Leather and other leather strips    
 5. Other materials indigenous to the Philippines.    

 Product finishing materials are as follows:    
    
 1. Clear lacquers, catalyzed lacquers  and other derivatives    
 2. Paint ( enamel, lacquers or water based)    
    
ADVANTAGE OF CEBU, PHILIPPINES AS A SOURCE:    

1. Availability  of indigenous raw materials unique  to the Philippines    

2. Capacity  of  Filipinos to speak and understand English providing easy communication with buyers.    

3. Technical  and  artistic know -how of  Filipinos  in their craft.    

4. Availability  of government technical personnel  and incentives to assist the exporter in  developing  a better product and entering the vast foreign market of furnitures.    

5. Availability of sufficient and up-to-date infrastructure for transportation, communication, banking, etc.