Cases

POLYTECHNIC UNIVERSITY OF THE PHILIPPINESCollege of Accountancy

Mabini Campus, Sta. Mesa, Manila

Case Study---“Ing. C. Olivetti & C. S.p.A.”

Business Policy and Strategy(MANA3103)

Submitted by:Mariano, Carla Joy Masusi, Christian

Mendoza, Donna MedinahBSA 3-16

Submitted to:Prof. RV Jane Salazar

May 10, 2012

VISION

MISSION

Ing. C. Olivetti & C., S.p.A envisions to remain advanced over the other companies and over the state services.

The company is inspired by a responsible view of the economic, social and cultural implications of labor and industrial life. It is dedicated in delivering high quality products with superior service as an employee involvement oriented organization and impart and nurture the culture of continuous learning in the organization at all levels.

OBJECTIVES

ACTIONS

The company aims to replace manual by mechanical writing and calculating; and to create machines for rationalizing office work in business and industry.

It took the following into actions:

Organizing the social services Planning a new factory in terms of

economic and social development Opening another line of products Studying the designs of new product Balancing form and function in an

industrial Drafting effective advertising copy

S W O T A N A L Y S ISP a r t 1

STRENGTHS:

Good reputation Good corporate image Broad line of products Systematic innovations Growing number of employees Used of American production methods Stable position in the market Broadened social insurance and assistance

provisions Adaptation of new work- time study methods Application of new psychological and esthetic in

advertising Camillo’s experience and moral force Different achievements of the company Distributed in different countries Olivetti’s motivating ideas Quality products Technical and organizational improvement Advanced level of technology Production capacity

WEAKNESSES

Unconventional views of Camillo Market dominated by foreign competitors Less attention to industrial enterprise High tariffs Low sales focus Hard to scale up to respond to peaks and

troughs in demand Contradicting ideas between science and

religion Slow expansion Governed by personal views many social activities

OPPORTUNITIES

Increase the use of technology for better products

Continuous innovation Ability to hire good employees Opportunity to have broader product lines competitors may be slow to adopt new

technologies better reputation because of employee

relations

THREATS

Growing numbers of competitors in the home market

Competitors in other countries Tariffs imposed by different countries Laws by different countries Risky industry Technology may result for some products

obsolete

STRENGTHS

WEAKNESSES

S W O T A N A L Y S IS ( P A R T 2 )

STRENGTHS

Extraordinary growth

Reappraisal of what the company has

accomplished

Sound basic structure

Diversified products

Improved financial position

Development in the company

Increased production

Massive export growth

Expansion and credit are under control

Strengthened credit system and export credit

insurance

WEAKNESSES

Increased debt

Sales of more than half of company’s stocks

Over capacitated

Luxurious products in the market

Weak technology

Financial crisis

Difficulties in amortizing costs of overhead

and research

Acquisition of risky company

Market itself grew less buoyant

Warehouses full of unsold products

Overoptimistic predictions

OPPORTUNITIES

Ability to be financially stable May expand more Opportunity to hire good employees for

the company Innovations May adopt new and improved technology Good credit reputation May have a bulk of capital in the future

THREATS

Competitors’ technology Competitors’ product line Government- imposed taxes Government- imposed laws Economy of the home country Other countries’ different laws

SYNOPSIS

Ing. C. Olivetti & C. SpA is an Italian multinational firm that manufactures

office equipment and information systems. Its headquarter is located in Ivrea,

Italy. Camillo Olivetti, an electrical engineer, founded the company which started

in making typewriters in 1908.

In 1925 Olivetti dispatched his son Adriano Olivetti to study modern

manufacturing techniques and plant management in the United States. Upon his

return, the company underwent a complete reorganization that included

streamlining and modernizing operations and development of a new typewriter

design, the M-40, which won wide acceptance in the 1930s.

In 1938 the younger Olivetti succeeded his father as president. Under his

leadership the company emerged as Italy’s second leading exporter of mechanical

devices and Europe’s principal manufacturer of typewriters and business

machines. The company also manufactures calculators, microcomputers, writing

systems, and related goods.

The company faced different problems such as the fall of economy of its

home market, the venture with other companies, and financial instability.

Fortunately, they have overcome these problems through teamwork of

management.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINESCollege of Accountancy

Mabini Campus, Sta. Mesa, Manila

Case Study---“Multi-Products, Inc.”

Business Policy and Strategy(MANA3103)

Submitted by:Mariano, Carla Joy Masusi, Christian

Mendoza, Donna MedinahBSA 3-16

Submitted to:Prof. RV Jane Salazar

May 10, 2012

VISION

MISSION

Multi-Products, Incorporated envisions to be one of the most profitable and stable company by implementing effective management policies that will contribute to the growth and progress of the company.

The fundamental reason for their being is to utilize the tax losses.

OBJECTIVES

ACTIONS

To utilize tax loss-carry forwards through more diversification.

To turn young men into cost-and-profit executives who are worried about getting sales, controlling costs, setting profitable prices and spending the company money wisely.

To implement effective policies that will maximize manpower on the business of the company.

Expansions of business lines through acquisition of three small companies.

Properly diversified numbers of employees to different departments.

Implemented an incentive system, so that the company management works hard to show profit and not allow earnings to decrease return on investments.

S W O T A N A L Y S IS

STRENGTHS:

Expansion of the company into two related and one unrelated lines.

Proper division of employees/personnel to different departments.

Effectiveness of Business policies implemented.

WEAKNESSES

Expansion of the company into two related and one unrelated lines.

Proper division of employees/personnel to different departments.

Effectiveness of Business policies implemented.

THREATS

The company underwent litigation because of the issues regarding its income statement and balance sheet.

Competitors Laws

OPPORTUNITIES

Increase in sales and profit and decrease in losses.

Expansion innovation

Synopsis (Multi-Products, Inc. )

Multi Products is a U.S. designer and manufacturer of sub-fractional shaded

pole AC and brushed DC gearmotors. Since 1958 we have been known for our

short lead-time, quick turnaround, and our willingness to work closely with our

customers. We strive to become the premier vendor our customers can rely on.

Multi Products began as a specialty machine shop working in the aerospace

industry. In 1958 we expanded and began providing complete electric

gearmotors. Many of our original open-frame gearcase designs of that day are still

in use today. In 2000 we enhanced our product offering with the acquisition of

MotoResearch, another local gearmotor manufacturer. Our motors are used in

such diverse industries ranging from foodservice equipment and popcorn

poppers, to coin changers and bill validators, from pinball machines and

redemption games, to oil skimmers and pumps. Multi Products truly is in the

heart of many commonly used devices that require a gearmotor.

Still located in the city where we began our roots in 1958, and with the

same dedication to our customers as in the past, you can rely on Multi Products

to provide a top quality, competitively priced gearmotor that meets your exact

needs and requirements. Our dependable on-time shipments, production

flexibility, uncompromising quality, and focus on our customers have been our

mainstays for over 45 years and will continue to be the foundation that Multi

Products will build into the future.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINESCollege of Accountancy

Mabini Campus, Sta. Mesa, Manila

Case Study---

“Basic Industries”

Business Policy and Strategy(MANA3103)

Submitted by:Mariano, Carla Joy Masusi, Christian

Mendoza, Donna MedinahBSA 3-16

Submitted to:Prof. RV Jane Salazar

May 10, 2012

VISION

MISSION

We envision ourselves as a leading manufacturer of electronic components and shipbuilding in the nation.

We are committed to a specific growth rate in net income and ROI. We responsibly provide quality products and services through innovation, learning and operational excellence.

OBJECTIVES

ACTIONS

To promote a profitable and sustainable business activity that meets the customer’s needs.

o To make sure we satisfy the demand.o Bigger cash flowso Wider profit marginso To have the best product in the market

at lower cost.o Increase metal products’ real

investment

It took the following into actions:

o Changed the divisional management.o Cost Reduction plano A detailed planning procedureo Intense screening of projects proposalo Implemented profit leadership

management

S W O T A N A L Y S IS

STRENGTHS:

o Intense formal and detailed planning

o A great marketing philosophy and pricing philosophy

o Leadership in high-performance material technology

o Patents and great deal of proprietary experience

o Substantial technological lead on its competitors

o The first to have the most promising new material called Toranium.

WEAKNESSES

o High cost

o Lack of manufacturing facilities

o Overestimates the amount of capital required in a proposed project

o Stigma attached to coming back for more of money

o Delayed facilities

o Capital expenditure cutback

OPPORTUNITIES

o Possible expansion of facilities.

o Possible higher ROI in the future that depends on marketing the toranium.

o Product diversification

o Expanding of market as the competition exists in marketing the toranium

o Possibility of new facilities proposals

o Potential company growth

o Opportunity to attract more customers because of the new materials called toranium

o Competitors being unaware about the toranium

THREATS

o Uncertainty of new demand for toranium

o Uncertainty in terms of technical and marketing abilities for toranium

o Competition in the market

o Economic differential

o Possible contamination of toranium as being developed

o Possibility of product inefficiency and quality problems will be encountered upon the start-up of facility for toranium.

o Possible need of additional funds therefore, might jeopardize the entire project for toranium

SYNOPSIS

Basic industries engaged in different activities from shipbuilding to the manufacture of electronic components. The corporation was organized into five autonomous divisions. These divisions had sales totaling $500 million in 1965. The metal production division was the most profitable. This position of profit leadership within the company had not always been held by metal products. When the market share of divisions fall, the company planned to drop one of its division.

In the late 1950s metal products decided to follow its technological knowledge and proprietary production skills into high – performance materials market. One of the metal products’ most promising new materials was toranium, for which Jim Roberts was product manager.Sam Courtney, district works manager (to whom the plant managers of the Chicago, Akron and Indianapolis plants reported) explained that a need for new capacity or new toranium facilities proposal is needed after the long range forecast that he’d requested.

In response to this accelerating market situation, Courtney and Bill Mason, vice president of production for metal products, asked Pete Adams, plant manager of Basic Industries’ Chicago plant, to make “full-fledged study of the three locations (Akron, Pittsburgh, and Chicago) in which to expand the toranium business. In May 1966, Pete Adams, was worried about the new facilities proposal for toranium. His division, metal products was asking for $1 million to build facilities which would be at full capacity in less than a year and a half (if forecasted sales were realized). Yet the divisional vice president for production (Bill Mason) seemed more interested in where the new facility was to go than in how big it should be. Adams wondered how, as plant manager, his salary and performance review would look with the new facility short of capacity.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINESCollege of Accountancy

Mabini Campus, Sta. Mesa, Manila

Case Study---

“Heublein, Inc.”

Business Policy and Strategy(MANA3103)

Submitted by:Mariano, Carla Joy Masusi, Christian

Mendoza, Donna MedinahBSA 3-16

Submitted to:Prof. RV Jane Salazar

May 10, 2012

VISION

MISSION

Heublein envisions itself to be the number one liquor brand in the world

It considers itself a consumer goods business not a liquor business. It is committed in giving a good liquor product, distribution, and advertisement.

OBJECTIVES

ACTIONS

The company aims to:

1. To continue a sales growth of 10 % a year

2. To be a successful business3. To maintain quality control

It took the following into action:

o Internal growtho Acquisitiono Did a good product, distribution, and

advertisemento Installed and owned the copper

filtration units

S W O T A N A L Y S I S

STRENGTHS

o Good position in the business

o Rising sales of liquors

o Dominant in the market

o Consumer- oriented marketing

o Wide range of products

o Acquisition of good companies

o Expanded internationally

o Higher Sales growth

o Higher Profit growth

o Return of equity is beyond average

o Quality products

o Good image

o Unique advertisement

o Good relation to its distributors

o Quality control

WEAKNESSES:

o No direct experience in beer industry

o Tight competition

o State- regulated

o Costs of advertisement are relatively high

o Some lines are less profitable

o Quality control is costly

o Did not produce the grain neutral spirits for its gin

o Did not redistill the liquors

OPPORTUNITIES

o Wider range of product

o Opportunity to dominate beer industry

o Opportunity to grow globally

o Use of higher technology in production

o Ability to launched new product

THREATS

o Competitors

o Government regulations

o Laws of other countries

o Tariffs

SYNOPSIS

Heublein Inc. was an American producer and distributor of alcoholic

beverages and food. Its stock was regarded as one of the most stable financial

investments. Heublein was originally founded as a restaurant and hotel business

in 1862 by Andrew Heublein. They began making A1 Steak Sauce in 1895. When

the company was handed over to his son, Gilbert F Heublein, it began selling

ready-made cocktails, and incorporated in 1915 in Connecticut as G.F. Heublein

Inc.

In 1938 Heublein acquired all rights to Smirnoff Vodka, a brand that had

been produced in Russia prior to the October Revolution. Heublein is credited

with popularizing vodka in the United States by marketing Smirnoff as "White

Whiskey". Smirnoff became one of Heublein's most successful brands. In 1969,

Heublein began selling some of these cocktails in eight-ounce cans. In the 1970s,

Heublein introduced a new line of drinks named "Malcolm Hereford's Cow". This

was a flavored, 30-proof alcoholic milk drink that was mostly popular with women

and college students of both genders.[2] It enjoyed a brief fad before vanishing

into obscurity.

Heublein purchased Hamm's Brewery in 1968, selling it to Olympia Brewing

Company in the 1970s.These acquisitions gave Heublein one of the largest

winemaking operations in the United States.