Casper Minerals Corporation

• Main Author: Madamba, Vicente P.
• Format: text
• Language: English
• Published: Animo Repository 1996
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2185
• Institution: De La Salle University

Casper Minerals Corporation (CMC) was incorporated to supposedly formalize the loose venture between Casper International Trading, a sole proprietorship owned by Mr. Casper and a technically-oriented partnership. The first venture involved the mining of the non-metallic, silica quartz. CMC also ventured into trading and delivery of construction materials notably sand, gravel, and making of concrete hollow blocks. CMC earned modest accumulated net income of about P4M at the end of 1994, six years after it was incorporated but practically lost everything in 1995. As it faces 1996, it has the products-silica quartz (raw and powder) concrete hollow blocks the markets for such including those for sand and gravel and the facilities especially hauling trucks but it does not have the money. Present strategies include debt financing for facilities differentiation of the silica quartz and concrete hollow blocks products, diversification into trading of other construction materials, labor-intensive operations, and centralized leadership. Structural analysis of the silica industry showed a low threat of new entrants low intensity of rivalry low pressure from substitute products low and high bargaining power depending on the buyer group and high bargaining power suppliers. The value Chain analysis of the activities at CMC showed operations to be an area for competitive advantage but support activities like those of the firm infrastructure, human resources management and procurement are weak areas with technology development practically non-existent. Main strength are a unique product in silica quartz and the technical and managerial credential of stockholders while main weaknesses are the shaky financial position and inadequate general management system. Identified opportunities for CMC are the growth in the manufacturing, construction and mining sectors and main threats are increasing labor pressure and environmental concerns. Recommendation for CMC is to pursue production of silica quartz with emphasis on the higher grade ore and differentiating it into different forms-chunks, chips, fine, powder, coarse powder, etc. to suit different applications especially those of the lower volume but higher value consumers like ceramics and other construction related materials. Short and long-term courses of action were recommended to support the over-all strategy.