Corporate strategies for Shang-Li Plastic Corporation
Date of Publication
1999
Document Type
Oral Comprehensive Exam
Degree Name
Master of Business Administration
Subject Categories
Business Administration, Management, and Operations
College
Ramon V. Del Rosario College of Business
Department/Unit
Decision Sciences and Innovation
Abstract/Summary
Shang-Li Plastic Corporation is a contractor of plastic and components. The company manufacturer parts for the electronics and houseware industries. Some of its products are thermos, wall fans, wall clocks, water jugs and food containers. It has an authorized capital of P 8, 000, 000.00, which is fully paid. Among the major customers of the firm are Dragon Enterprises Corporation, the manufacturer and distributor of Reynolds ballpen and Micrene Enterprises, the manufacturer of Mega water jug. The firm belongs to the plastics industry in the Philippines.
In analyzing the industry, the 5-forces model of Michael Porter used was used. It shows that the barrier to entry are low as evidenced by the numerous companies within the industry while the potential substitutes are high due to the growing consciousness of the companies to become environmental-friendly and switch to bio-degradable products. On the other hand, the bargaining power of buyers is high on the basis of numerous companies providing the same needs and wants while the bargaining power of suppliers is low due to numerous suppliers in the industry and low switching costs. Finally, the intensity or rivalry among companies is high due to lack of differentiation and the high number of competitors in the industry.
The proposed vision of Shang-Li Plastic Corporation is Committed to excellence A drive to unending search for exceptional search for exceptional plastic products Its mission is geared towards a commitment for a continuous quality improvement in all its products, processes and services to meet high customers expectations though synergy between the functional units. Shang-Li Plastic recognizes its responsibility to provide job security for its members and to extend benefits within the capabilities of the company and in compliance with law and to protect the interests of stockholders as the company strives to give them the fairest return.
The proposed objective of the company is to achieve an increase in annual net profit of at least 12% from 199 to 2003. In order to attain the said objectives, the generic strategy to be adopted by the firm is focus-low cost strategy. The proposed corporate strategies to be used to achieve its goal are: (1) Entering into an agreement with plastic mould maker, I-Tung Plastic Mould Engineering Company in order to capture additional customers and at the same time expand its products and services (2) Investing in Shing Hao Plastic Corporation which will provide additional income to the company and contribute to added profit (3) Creation of corporate planning and the integration of functional areas using information technology (4) Develop policy and procedures for the company (5)Conduct training programs and set-up standards for quality inspection which will be a source of competitive advantage over their competitors, allowing the company to provide better services to their customers and immediate response to their needs (6) Apply for ISO 9001 standards in order to be globally competitive.
With the implementation of these proposed corporate strategies, it is projected that by the end of 199, Shang-Lis net income after taxes will be P10.4 million and will reach up to P19.3 million by the year 2003. The total assets of the firm will amount to P34.2 million in 1999, and will reach P95.2 million by the year 2003. However, the firms current liabilities are expected to increase over the next five-year period. But, the companys projected cash flow in 1999 and 2002 will post an increase in cash of P1.8 million and P1.4 million respectively while a decrease in cash of P0.9 million, P0.5 million and P1.2 million in year 2000-2001 respectively.
On the other hand, sensitivity and scenario analysis showed that Shang-Li will still post a positive growth on its net profit and be able to attain its corporate objective should the company experienced an 8% and 12% projected annual increase in sales.
Abstract Format
html
Language
English
Format
Accession Number
OCE0103
Shelf Location
Archives, The Learning Commons, 12F Henry Sy Sr. Hall
Physical Description
96, 11 unnumbered leaves ; illustrations (some colored) ; 28 cm.
Recommended Citation
Go, J. (1999). Corporate strategies for Shang-Li Plastic Corporation. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/2161
