Corporate strategy of Textile Chemicals Incorporation

• Main Author: Santos, Maricar S.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2261
• Institution: De La Salle University

Textile Chemicals Incorporation (Texchem) is a P16M medium-scale company that is engaged in the manufacturing of textile chemicals and auxiliaries that are used by local textile finishing companies in order to satisfy the need for fabric care. Backed by the Wide-Lee Limited Co., its initial business operations involved the manufacturing of textile resins and importation of textile chemicals and its auxiliaries in 1985. These textile chemicals were not locally available then. Local finishing companies had to import these materials badly needed for their operations. During mid 80s, dollar requirement was a shortage. It was at this time that a group of Filipino- Chinese and the Wide-Lee group of companies from Taiwan decided to set-up a manufacturing plant to address these needs. The objective of this term paper is to com-up with strategies for Textile Chemicals Incorporation. By defining the industry in which it belongs and using Michael Porters five forces model, it should evaluate specific courses of action the company would undertake. It should also analyze the opportunities and threats of the fabric care industry through an environmental scanning. The companys strengths and weaknesses would be evaluated through their financial statements and value chain. The basis of strategies being formulated in this paper would be based on the industrys opportunities and threats and the companys strengths and weaknesses. The strengths would be used to exploit the opportunities of the industry and reevaluate its weaknesses to prevent threats posing the industry. The companys vision is to become a leader in the fabric care industry known for its quality, environmental friendly and cost-effective fabric care products. To realize this vision, the company must commit itself to deliver quality products to its customers for mutual prosperity and trust-worthy partnership to provide an environment to its employees for growth and development that would motivate and nurture positive performance and to be innovative in developing environmental friendly products that would protect the societys interests. The main objective of every company is to maximize stockholders wealth. Aside from this, the objectives of Texchem are: to increase profitability rate, to increase market share, earn an ISO 9002 accreditation and increase its current operation through an expansion. Over-all cost leadership should be the companys generic strategy. In order to meet these corporate objectives, Texchem should expand its operations by acquiring new equipment and machines, develop specialty chemicals and implement internationally known quality system through an ISO accreditation. Implementation of the corporate and functional strategies would be based using the 7S framework. The strategies for implementation must be aligned to meet the companys objectives. Moreover, financial projections are prepared to see if the companys objectives would be attainable by the suggested strategies.