Formulation of strategies for Malambot Plastics Corporation

• Main Author: Kong, Yingchiong
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2170
• Institution: De La Salle University

Malambot Plastics Corp. (MPC) is a manufacturing firm engaged in the processing of polyvinyl chloride (PVC) into films, sheeting, and leatherette. It is catering to the needs of the footwear industry, the school supplies industry, the furniture industry, the automotive industry, and other industries. Though MPC did not formulate its own policy statement, it uses its parent companys overall corporate goals as guidelines in doing business in general. From the structural analysis, the different opportunities and threats that are present in the environment external to the company were identified. The analysis shows that although there are high entry barriers, the rivalry among firms is quite intense. There is also a strong buyer force in the regular product category. The internal strengths and weaknesses of the company as well as its financial conditions were examined. The strengths of the company are basically results of its past successes. However, these past successes were also the major causes of the companys weaknesses, the companys inability to adjust to the changing business conditions. An analysis of the different competitors of the company highlighted by the competitive posture of the company against its rivals was done. The major competitors of MPC was identified to be Laguna Plastics Corp. (LPC) and a comparison of the financial conditions of the two companies was also provided showing that LPC is doing better in most areas. The recommendations given were based on using the companys internal strengths, converting its weaknesses to strengths, to exploit the opportunities present and to protect itself against the threats found in the external environment to achieve the objectives of the company. The paper gives more weight on the corporate level strategic planning process and the human resources development function. Given the direction to go and employing competent and motivated employees, the company can again join the roster of the top 1,000 corporations in the Philippines, in terms of Gross revenues, in five years time.