A strategic management paper for 1008 Packaging Materials Trading: Your packaging logistics solution

• Main Author: Dolon, Arriet R.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Packaging; 1008 Packaging Materials Trading
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3658
• Institution: De La Salle University

This paper is a strategic plan for 1008 Packaging Materials Trading, the Authors family business. The company as part of the small and medium enterprises which comprise a large part of the industry undeniably contribute a lot in the nations economy. Most of our economy operates around the small-to-medium-scale, closely held enterprise that is nearly always a business that is owned and/or managed by one or more individuals who can be designated as a member or members of a family namely, the family business. A family firm is one wherein at least 50% of the ownership and management falls within one family-whether related by blood or marriage. (Lee-Chua, 1997) The strategic plan has its basis which consists of various frameworks used, which will allow the company to compete in the local market for its services. The paper begins with an analysis of the external environment. In terms of addressing market needs, the company is under the Packaging Industry. The general need being addressed is the need for packaging materials for transport and logistics. Globalization and rapid technological change are two factors that have caused changes in the macroenvironment more rapidly than the past. It requires all business firms to undergo a process of change if they want to survive and remain competitive. When the macroenvironment changes, the degree of change will affect and change the task environment but internal environment will not automatically change, the management must initiate changes. The owners-managers therefore must be open to change in management styles and organizational culture to avoid personal biases and for the family business to survive. Industry operates in macroenvironment which keeps on changing. Analysis of those environments that are relevant to industry helps to determine whether the changes will be an opportunity or threat to the industry. Through the use of Porter's Five Forces Model, the paper provides an analysis of the Company's task environment by examining the competitive forces affecting the industry. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces: threat of new entry, intensity of rivalry among existing competitors, pressure from substitute products, bargaining power of buyers, and bargaining power of suppliers.