Strategic management for Twin Tinsmith

• Main Author: Peña, Nancy Chan
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2232
• Institution: De La Salle University

Twin Tinsmith is a metal fabrication founded in the 1950's. It has stayed as a family business and had been conservative all through out their business years. The shops main fabrication specialty is to cut and bend metal sheets according to the specifications by clients. This study aims to assist Twin Tinsmith in formulating a sustainable competitive strategy. Starting with the analysis of the industry using Michael Porters Five Competitive Forces, threats, opportunities as regards to the external environment, and the companys vision, objective, its strength and weaknesses of the company. Twin Tinsmith vision is to be the fastest growing tinsmith in Manila. To realize this vision, I am presenting a need for a great deal of managerial attention, again from Michael Porters Generic Strategy, a Market Nicher, while focusing in the main core of business which is the metal sheets and cost control. Low cost relative to competitors becomes the theme running through the entire strategy, through quality, service and other areas cannot be ignored. As for the past two years of financial crisis, Twin Tinsmith was not much affected, however, they should be aggressive to counter competition globally as well as its local neighboring competitor. From the Analysis of the SWOT and the generic strategy characteristic of a Focus/ Market Nicher and Low Cost, proposed strategy for Twin Tinsmith is to invest in the Machinery and Equipment, hire skilled workers, expansion outside Manila particularly near Economic Zone Areas, establish linkages between sub-contractor, advertise modestly in Yellow Page Directory and hopefully be able to be an importer of flat metal sheets. A continuing improvement with the current strategy should not be overlooked. As for the financial matters, investments to be made would not be a problem since a father and son team contributes to an easier decision-making process. Implementation of the above mentioned strategies is to start upon review, approval of the owner and to be realized within 5 years. Specific targets include having at least a 25% growth in the net income by year 2003 and an increase in return on equity of at least 40% by year 2003. In preparation for the financing needed for the importation project.