Corporate strategy for Temprite Engineering, Incorporated

• Main Author: Acosta, Hilario Romil A., Jr.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2064
• Institution: De La Salle University

1.1 EXECUTIVE SUMMARY This Corporate Strategy is prepared for Temprite Engineering, Incorporated. The main Thrust of this paper is to provide Temperature a framework-based strategies and objectives. In arriving at Temperature Corporate Strategy and how will it be carried out and implemented, this paper is divided into two general parts. Part one is the Formulation of Strategy. Part two is the implementation of Strategy. In the formulation of strategy, Michael Porters Competitive Strategy Model is being used. In the implementation part, the seven (7)- S framework of Robert Waterman Jr., Thoma Peters and Julien Phillips is used. 1.1.1.Strategy Formulation: In the process of formulating strategies, it is important to consider as basis the companys objectives. The objectives of the company reflects its vision of where it is going. It is then paramount to define the vision of the company to develop and established a specific, measurable, attainable, results-oriented, and time-bounded-SMART objectives. In Michael Porters Competitive Strategy Model, the basis for strategies are derived from the consideration of the firms opportunities and threats in its external environment (immediate environment and macro-environment) the firms internal strengths and weaknesses, personal value or the firms value, and social expectations. The strength and weaknesses of the company will be view relative to the firms opportunities and threats in its external environment. Mapping of strategic groups (or Strategic Map) is also tackled to determine the different strategies pursued by each of the firms in the construction industry. Value Chain Analysis, Competitive Advantage and Competitive Advantage Cycle are also discussed. The strategies for Temprite that are presented in this paper are further classified into three interdependent categories. These are the generic strategy, the specific strategy and the functional strategy. 1.1.1.1 Opportunities and Threats: The opportunities and threats will be taken from the firms external environment. In this paper, two external environments of the firm will be considered: the firms immediate environment or its industry (the construction industry), and the macro environment. a. Industry Analysis: In analyzing the firms immediate environment or the construction industry analysis, the five forces Model of Michael Porter is used. The five Forces that directly affect the industry are: Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Bargaining Power of Suppliers, and the Intensity of Rivalry among the firms within the industry. Each of these forces will be evaluated and assessed and to what degree do they affect the construction industry. b. Macro-environment Analysis: The different factors in the macroenvironment pose both opportunities and treats to the firm. These factors include the macro-economic (inflation, interest rates, GDP and GNP), social, political, demographic and technological factors. In this paper, the macro-economic and political factors will be taken into consideration. 1.1.1.2 Strategic Map: The Strategic Map is a graphical display of how firms in the industry grouped and compete with each other. Temprite strategic group is defined using the strategic map. 1.1.1.3 Strengths and Weaknesses: Temprites strengths and weaknesses is tackled within the framework of opportunities and threats. This means that only the strengths of the company which it can use to exploit opportunities and shield itself from threats is taken into consideration. And also, only weaknesses that can be transformed into strengths is considered. The strengths and weaknesses of the company are derived from the firms financial position and its value chain. 1.1.2. Strategy Implementation: In Strategy Implementation, the 7-S Framework of Robert H. Waterman, JR. is used. The 7S are the Strategy, Structure, Systems, Style, Staff, Skill and Superordinate Goals.