Iron Wings Incorporated: Makers of my butterfly chair

• Main Authors: Araw, Carlo, Baquir, Mariams, Chua, Carolyn, Cortes, Katrina, Fabre, Maybeth, Garcia, Liberty, Magleo, Ronald Gerald, Morales, Theresa, Yao, Philip, Yee, Zeus Izzy
• Format: text
• Language: English
• Published: Animo Repository 2001
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12016
• Institution: De La Salle University

Executive Summary. Iron Wings, Inc. is a manufacturing company that aims to provide high-quality, inexpensive, practical, and modem chairs. It is composed of ten individuals who have committed themselves to provide comfort in accordance with the practical lifestyles of the Filipinos. The company exists primarily for the satisfaction of its customers, ensuring that they would receive their money's worth. This is done by giving them high quality products with a wide range of choices. The company envisions itself to be a highly competitive and reputable company that is known for producing chairs of superior quality that can compete worldwide. The company came up with its premiers product, My Butterfly Chair. It intends to cater to high school and college students and to young professionals as its primary market. My Butterfly Chair has been designed as a modern piece of furniture, its metal frame has a dimension of 32 x 32 x 37 which is collapsible to a dimension of 13 X 12 X 44 and could easily be stored. The canvass seat of My Butterfly Chair shall be produced in eye-catching colors and patterns that would surely satisfy the taste of its buyers. The company will sell the butterfly chair for P 950. Iron Wings Inc. will employ several marketing strategies that entail the use of promotional tools such as flyers, posters, promotional contest and discounts to attract potential customers. The manufacturing of the product will be fully subcontracted after fulfilling the 1/3 capacity of the company in production of the butterfly chair. This would occur on the second week of the fourth month of operations. The company shall fully subcontract My Butterfly Chairs because of the scarcity of the necessary equipment and the limited skills of the proponents, thus, lowering the costs incurred by the company. Production cost is estimated at P 575.75 per unit if six My Butterfly Chairs are produced in one production day, and P 519.51 per unit if nine butterfly chairs are produced in one day. The monthly output for the first two months shall be 24 units in the succeeding months 36 units shall be produced. Subcontracting the product shall satisfy the rest of the demand. The company's targeted return on investment throughout the Practicum program is 692.78 percent. The target sales of the corporation is P614,650, which is equivalent to 647 units of My Butterfly Chairs sold. The target net income after tax is P 237,332.25, which shows the potential profitability of the company's product. To break even, Iron Wings, Inc. will have to sell 93 units per year or 10 units per month. The following strategies shall be employed by the company to fulfill its objectives. The corporation based these strategies on the TOWS analysis performed after studying its industry and environment. The first of these strategies will be to pursue product development to be able to keep up with the markets needs and wants. Second, the company will then explore other viable target markets to be able reach potential customers such as women and children. Finally, the company will develop diverse marketing strategies to increase product awareness and knowledge.