Proposed corporate strategy for Consolidated Aggregates, Inc.

• Main Author: Villafuerte, Cynthia C.
• Format: text
• Language: English
• Published: Animo Repository 1979
• Subjects: Real estate business > Philippines; Consolidated Aggregates Inc. (Philippines); Real Estate
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/173
• Institution: De La Salle University

Consolidated Aggregates, Inc. (CAI) is a corporation engaged in real estate development. In the past eleven years, it concentrated in the development of Millside Village, an upper middle-class subdivision along Ortigas Avenue Extension. Presently, development for this village have been completed and sale has been concluded except for some reserved areas and twenty house and lot units. The company is now faced with the problem of determining its corporate direction and strategy in the face of the opportunities and risks in the subdivision of the industry. An analysis of the environment point to the ever-increasing need for housing by the lower affordability levels of the urban population, and their increasing inability to pay for the cost of housing. It was also noted that the present government thrust in social development is in the direction of low-cost housing. It was likewise anticipated that the location of the 300-hectare property of the company would make it unsuitable for middle and upper income housing. An analysis of the strengths and weakness revealed that the company's strengths lie in its 300-hectare Carmona property, its astute Chief Executive Officer and its experienced sales staff. Its weaknesses on the other hand, consists of its lack of corporate planning, effective organization, and implementation mechanisms. Other major weaknesses are its lack of financial and production resources. In the light of these two sets of analyses, the strategy of a ten-year development of the Carmona property as an integrated community is projected to consist of the following areas, according to their schedule of development : low-cost housing, Industrial, medium-cost housing, commercial and recreational, executive housing, golf and country Club. The marketing strategy chosen to be adapted was that of group sale to employees of agencies and companies which grant housing loans to their employees. The financial strategy was that of turn-key financing from sub-contractor and by internal generation of funds. Production strategy was that of sub-contracting until the fifth year when the company is fully ready, manpower-wise and financially to embark on its own construction venture.