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I. Current Situation A. Past Corporate Performance Indexes 1970s The company was established. 1973 Philip Addan set up small factory in Balibago, Angeles City with six workers. 1979 The company started selling their products internationally. 1995 Philip turned over the business to his daughter Cecilia as Vice President due to heart attack but remained President of the company. 2000 Exported 150 containers each of which held about 7,824 torches. Early 2001 The company obtained a bank loan of Php11 million. B. Strategic Posture Current Vision The case didnt put Vision Statement of the company. Current Mission The case didnt have a Mission Statement of the company. Current Objectives 1. To create a formal organization of the business. 2. To maintain and increase the number of orders exported internationally. 3. To hire employees that is more capable and more suitable and has new ideas in marketing the product. 4. To increase sales locally 5. To persuade local buyers to buy and use product in the Philippines instead of ordering abroad. 6. To increase market shares. 7. To produce new designs but to maintain quality-based product. 8. To reduce bank loan of Php11 million. Current Strategies 1. Creating other products out of bamboo. From candle holders to lampshades and finally concentrates on their bamboo torches. 2. Relocating their factory due to the growing demands of clients. 3. Offers variety of designs, sizes and colors of their bamboo torches. 4. Develop necessary chemical treatment to avoid rotting of the product. 5. Exports product to the North, Central and South part of the world. 6. Sells the product in fewer prices. 7. The company only starts producing bamboos after the clients have placed their orders. 8. Hires skilled and semi-skilled laborers for six months to work the product and hires seasonal workers during wet seasons.

9. The company has only five regular employees to run the business. 10. The company participates in some bazaars internationally in order to have more clients. Current Policies 1. 2. 3. 4. 5. Hiring seasonal workers during peak season. Providing a safety workplace for the workers to minimize accidents. Wearing of appropriate working clothes during their operating hours. Employees should abide and follow working hours. Implementing quality control on the products.

II. Corporate Governance A. Board of Directors The company has no board of directors since it is a sole proprietorship. B. Top Management Philip Addan President Pedro Tinio Operation Management Rey Calin Finance Manager Cecilia Addan Vice President Dory Llanes Administrative Manager Elias Cruz Plant Manager

III. External Environment (EFAS): Opportunities and Threats A. Societal Environment Economic Forces The Bamboocraft is based in the Philippines therefore supplies of the bamboos are abundant. Natural and uniqueness of the product with different designs make them have lots of clients and they earned more profits. Monthly payment of their balance on the loan they have. Weak global economy causes their exports down. Technological Forces There is already developed chemical treatment against rotting of the product. Drying machines makes the operation still going on during wet season.

Lack of technology to transfer the product when big order is placed by the buyers that they hire subcontractors for it. Social Forces Since the business is labor intensive, many people will be given jobs. U.S demands for the product since peoples lifestyle is having fun at the shore/resorts. Terrorist struck in the World Trade Center lowers the sale of torches since half of the companys buyers were based in U.S. Political Forces U.S government have low defense against terrorists attack. B. Task Environment Competitors Bamboocraft product such as torches is known internationally. Their designs, quality and good services of the business to their clients make them attract more customers. More demands of bamboo torches even though other company has the new kinds or types of torches. The price is affordable. Threat of New Entrants The threat of new entrants is low because Bamboocraft has already established a good reputation that serves as a good foundation compared to those who are new in the business. Their products like bamboo torches had already surpassed internationally. Threat of Substitute Products Since Bamboocraft have bamboo torches that has a different designs offered that serve as an option to buyers, the threats of substitute is low. Even if you shift from one product to another, what matters most is still Bamboocrafts product. Bargaining Power of Suppliers The bargaining power of suppliers is high because there are few suppliers and many buyers. They have the control over the price of the goods which increases during the wet season. Bargaining Power of Buyers The bargaining power of buyers is high because they buy the products from the suppliers with a cheaper price and sell to others five to six times of the original price. They earn more income than the suppliers.

IV. INTERNAL ENVIRONMENT (IFAS): STRENGTHS AND WEAKNESSES A. Corporate Structure

Philip Addan President

Cecilia Addan Vice President

Pedro Tinio Operations Manager

Dory Llanes Administrative Manager

Rey Calin Finance Manager

Elias Cruz Plant Manager

B. Corporate Resources

Marketing Bamboocraft started selling internationally in 1979, just three years after setting up its small factory. They started exporting torches to the United States and then expanded its foreign market to Canada, France, Australia and other European countries. It takes six months to process the orders because it is not always easy to get a good supply of bamboo especially during wet season when they become scarce. Finance Bamboocrafts customers increase and because of that the sales and net income grows rapidly. The company acquires a bank loan of Php 11 million. But because of the September 11, 2001 attacked in the United States and half of the companys buyers were based in the US, they are threaten on how to pay their loan. Research and Development Bamboocraft should ask for suggestions from their customers in order to improve their product. They have no furniture designer to design new products that can attrack customers. Operations and Logistics Bamboocrafts selling product is bamboo torches and they deliver their product at affordable price and in high quality. Some of their competitors are abroad and its simple for them to deliver the product on time with no defects to the products. Human Resources Bamboocraft hires skilled workers for producing high quality products and also seasonal workers during peak season of September to May. They dont hire employees such as sales manager and marketing manager that can help in selling and marketing their products very well as well as furniture designer that can develop new products out of bamboo.

Information System Bamboocraft learned to adapt to the modern environment and to cope up with the demands of their customer They dont have a comprehensive and effective information system.

V. Analysis of Strategic Factors A. Key Internal and External Strategic Factors (SWOT). Strengths 1. 2. 3. 4. 5.

Bamboocraft started selling internationally in 1979. Bamboocrafts customer increases and income grows rapidly. Takes notes the suggestions of their customers. Sells and delivers their product at affordable price and in high quality. Copes up the demands of their customers.

Weaknesses 1. It takes six months to process the orders due of lack supply of bamboo especially during wet season. 2. The company had a bank loan of Php11 million. 3. Slow development of new product designs. 4. They dont advertise the product. 5. They dont have a comprehensive and effective information system. B. Key External Strategic Factors Opportunities 1. The Bamboocraft is based in the Philippines therefore supplies of the bamboos are abundant. 2. There is already developed chemical treatment against rotting of the product. 3. Drying machines makes the operation still going on during wet season. 4. U.S demands for the product since peoples lifestyle is having fun at the shore/resorts. 5. Natural and uniqueness of the product with different designs make them have lots of clients and they earned more profits. Threats 1. Monthly payment of their balance on the loan they have. 2. Weak global economy causes their exports down.

3. Lack of technology to transfer the product when big order is placed by the buyers that they hire subcontractors for it. 4. Terrorist struck in the World Trade Center lowers the sale of torches since half of the companys buyers were based in U.S. 5. U.S government have low defense against terrorists attack.

C. Tows Matrix
STRENGTHS(S) 1. Bamboocraft started selling internationally in 1979. 2. Bamboocrafts customer increases and income grows rapidly. 3. Take notes the suggestions of their customers. 4. Sells and delivers their product at affordable price and in high quality. 5. Copes up the demands of their customers. WEAKNESSES (W) 1. It takes six months to process the orders due of lack supply of bamboo especially during wet season. 2. The company had a bank loan of Php11 million. 3. Slow development of new product designs. 4. They dont advertise the product. 5. They dont have a comprehensive and effective information system.

OPPORTUNITY (O) 1. The Bamboocraft is based in the Philippines therefore supplies of the bamboos are abundant. 2. There is already developed chemical treatment against rotting of the product. 3. Drying machines makes the operation still going on during wet season. 4. U.S demands for the product since peoples lifestyle is having fun at the shore/resorts. 5. Natural and uniqueness of the product with different designs make them have lots of clients and they earned more profits. THREATS(T) 1. Monthly payment of their balance on the loan they have. 2. Weak global economy causes their exports down. 3. Lack of technology to transfer the product when big order is placed by the buyers that they hire subcontractors for it. 4. Terrorist struck in the World Trade Center lowers the sale of torches since half of the companys buyers were based in U.S. 5. U.S government have low defense against terrorists attack.

SO STRATEGIES 1. Aggressively expand globally. 2. Locating best markets to sell the products. 3. Create additional designs of the product. 4. Use technological advantages to promote product like using the internet.

WO STRATEGIES 1. Focus on local markets. 2. Advertise the product worldwide. 3. Contact other businesses that need a supply of the product.

ST STRATEGIES 1. Focus not only in the U.S market but also to other countries market. 2. Use their growing income to develop new technology to help them transferring the product. 3. Set alternatives in case the countrys economy will down. 4. Get insurances for safety reasons.

WT STRATEGIES 1. Increase the products price to cope up with the loans balance. 2. Make use of machines to dry the bamboo to increase production. 3. Implement a satellite for fast updates.