ORDONEZ OPTICAL COMPANY

BACKGROUND OF THE COMPANY

DR. Antonio Ordonez established the Ordonez Optical in 1932,after taking over the Manuel
Soliongco Optical, one of the earliest optical clinic in the Philippines. Dr. Ordonezs dream had been
set up to an optical empire with branches in all provinces of the country. As of 1972, the Ordonez
Optical Network was composed of ninety-six (96) in the form of retail and wholesale outlets and
laboratories. Ten of these were owned and managed by the children of the original owner.

To ensure a steady supply of the needs of these branches, a factory was set up in 1952 with Mr.
Miguel Ordonez as head. This later grew to become the Ordonez Optical Manufacturing Company, a
multi-million peso enterprise.

Both the distributing and manufacturing companies were managed by the same set of officers. The
positions were both occupied by immediate members of the family, Miguel and Democrito. The
owner, Mr. Antonio Ordonez retired from actual management of the enterprise and his son, Miguel
Ordonez had taken over.
TIMEFRAME
1932
- Dr. Antonio Ordonez established the Ordonez Optical, after taking over the Manuel Soliongco
Optical, one of the earliest optical clinics in the Philippines.
1952
- A factory was set up to ensure a steady supply of the needs of the branches with Mr. Miguel
Ordonez as head. This later grew to become the Ordonez Optical Manufacturing Company, a
multi-million peso enterprise.
1970
- Ordonez had been exporting its products to markets abroad.
- After years of research and experiments, the company put up an additional factory for vision
fusing.
1971
- The average monthly sales of the company from its ten branches alone amounted to P200,000
and steadily grew in the succeeding years.
- Ordonez reported exports amounting to $2,806,000 to the Asian countries alone.
1972
- The Ordonez Optical network was composed of ninety six (96) branches in the form of
wholesale and retail outlets and laboratories.

SWOT ANALYSIS

STRENGTHS:
Ordonez Optical Company
Ordonez Optical Manufacturing Company is the most known optical manufacturing company
and is now a multi-million peso enterprise.
Filthy rich owners/Wealthy company
Dr. Antonio Ordonez has other establishments other than the Ordonez Optical Company, namely: 1)
Olondriz Mineral Development, 2) South Mindanao Agricultural Development, 3) Philippine
Technical Institute.
Miguel Ordonez, the vice president and general manager, the most active member of the family in the
business. Knowledgeable of latest manufacturing techniques in different factories he studied for 4
years in the United States. He is also the owner of Ordonez Manufacturing Company.

Reliable credit standing- The company was able to avail of the facilities of local financial
institutions. The company was also able to utilize the bank facilities in opening commercial
letters of credit, which was managed by Democrito Ordonez.
Democrito Ordonez, the treasurer of the company, has another optical manufacturing company,
Affiliate Company, it had complete bank facilities in opening commercial letters of credit.
(although its manufacturing processes were limited to styles not covered or made by the Ordonez
Factory and were more less operated)
Democrito goes to abroad once in every two years to be updated on latest developments in
optical.
Democrito is also active in running the familys business
Democrito is a japan-trained optician, and knowledgable of latest manufacturing techniques in
the most modern factories in all continents.
Democrito is a well versed and adept at operating optical laboratories for their various
branches.
Ready markets 96 outlets all throughout the Philippines
(Although only 10 are owned by the original owner)
Stronger Competitive position despite multitudinous/numerous outlets
Excellent customer-relationship
Good coordination among employees
Steady growth
 Steady supply- to fill up the need of numerous branches
Good product development- characterized by great productivity
Active local and foreign market- abundant sales throughout Asian Countries

WEAKNESS:

Budget-consuming/ Money spender/Spendthrifty

The company channeled its products through agents who are not even part of the companys
own sales network.
plus, major representatives for each major area: Luzon, Visayas, Mindanao.
OPPORTUNITIES:

Opportunity provided for by the government in the Free Trade Zone in Mariveles, Bataan.
Opportunity to expand operations in Japan
Opportunity to expand operations in Europe
Opportunity to expand operations In the United States

THREAT:
Numerous sales outlets
Competitive Market
Consumer behavior
STATEMENT OF THE PROBLEM

Main Problem:
What plan should the company do to increase their export sales?
Sub-problem:
How will they minimize their operating expenses to maximize their profit?

ALTERNATIVE
Courses of Action

1. Opportunity provided for by the government in the Free Trade Zone in Mariveles, Bataan.
Quantitative
The company has no problem in acquiring financial assistance it needs for the opportunity.
Qualitative
PROS: The Free Trade Zone is considering a plan to increase the Companys sales exports to
the developing countries of South-East Asian countries.
The opportunity is provided for by the government.

CONS: Increase in carrying costs/shipping costs might apply

The company has already an existing shipping company which it exports their products in all
Asian countries.

2. Plan for Exportation

2.A Export in Japan
Quantitative
The company has no problem in acquiring financial assistance it needs.
Qualitative
PROS: Mr. Democrito Ordonez, the treasurer of the Ordonez Optical Company, a Japan-
trained optician, he toured Japan and observed the latest manufacturing techniques in the most modern
factories in the continents and set it up on the manufacturing department and expanded operations.
CONS: Mr. Democrito Ordonez is a general manager of another optical manufacturing
company, Affiliate Company, which he personally supervise.

2.C Export in United States

Quantitative
The company has no problem in acquiring financial assistance it needs.

Qualitative
PROS.: The active vice-president and general manager of the company, Mr. Miguel Ordonez, have
went to the United States and studied the latest manufacturing techniques in different factories. He
spent four years at Brunswick Optical Manufacturing at Loop, Chicago. After studying, he set up the
Ordonez Optical Manufacturing Company which is now the most known optical manufacturing
company and now a multi-million enterprise.

His father, Dr. Antonio Ordonez dream had been accomplished. And now Miguel is thinking of
moving this optical empire to other areas of opportunity as his father had once set out to do so.
CONS.: active competition with Miguels alma mater, Brunswick Optical Manufacturing could
happen.
RECOMMENDATION

Since Mr. Miguel Ordonez, the most active family member in managing the Ordonez Optical
Company and the owner of the Optical Manufacturing Company, is thinking of moving his optical
empire to other areas of opportunity, we highly recommend to plan for an export in the United States
where he had studied and observed the latest manufacturing techniques in different factories in
Brunswick .
Subsequently, United States is a home to people of many different national origins, a multi-
ethnic composition, a diverse country; racially and ethnically, it would be also a great help if his
brother, Democrito (who had observed the latest manufacturing techniques in the most modern
factories in the continents) could might as well give a contribution to the said plan.

For the past 5 years, the company had been too much costly with their operating expenses. We
further recommend too, to minimize their operating expenses by means of both administrative
expenses and selling expenses to maximize their profit in the succeeding years.
Points to consider:
1. Take action on their business prospect.
Persons responsible: Top management, Financial analyst officer, marketing director
2. Have a lesser sales agents in channeling products in the local and foreign market or REMOVE some
of the sales agents who are not even part of the companys sales network, and strictly monitor.
Persons Responsible: Top management & Marketing Director

CONCLUSION
Among all the alternatives given, a plan for an expansion in the United States is the best plan
for the company to make, with some minimization in their operating expenses to have the best of
results in terms of the company sales and profit.
 Union Christian College
Widdoes St. Brgy. II San Fernando City, La Union

ORDONEZ OPTICAL COMPANY

Submitted to: Submitted by:

Nellie M. Galvan Jeanuel Mae Ramos
Kryzia Jelle Castillano
Peter Jan Tadeja
Dionisio Dulatre
Kristine Joy Tangoay

2017