CASE STUDY 10
PERMAJA TRADING AND BUILDERS CORPORATION
Submitted by: Juvy D. Alejandro
2. ENVIRONMENTAL ANALYSIS
A. GENERAL ENVIRONMENT
OPPORTUNITIES
 Donato Martinez was
1. Socio-Cultural promoted as foreman in the
construction department
 Donato or Ato rose from the
ranks as foreman, a position
usually given to a college or
technical education
graduate
 Ato is a high school
graduate but his 15 years
with the company has
proven his worth for his
goodperformance and his
loyalty to PTBC.
 His projects were completed
2. Political on time and costs estimates
were met on a target.
 Ato’s performance was still
considered by the
management as very
satisfactory.
 It is policy of the company  The
3.Legal not to let matter of personal
concern interfere with work
efficiency or allow nature of
his personal life affect the
PTBC image in community.  Ato got involved with
 Donato or Ato rose from the
 In a new project in Cebu,  Walter was not happy about
4.Technological Ato was made to handle the
construction of the big mall.
 PTBC has made a name in
mall constructions as a
THREATS
 Ato’s personal life is not
unknown to the
management
 His wife does not pay
attention to him and this led
him to drinking sprees after
office hours.
 Family matters worsened as
Ato drinking too much, he
was absent from his work
especially after weekends.
 The management called his
attention to his absences
and he was reprimanded
and was given written
warnings
 For a time Ato would pay
attention to the advice of the
management and his
performance improved for
the time being.
management was
alarmed but no replacement
was available to take the
place of Ato at the Cebu
site.
another woman in Cebu and
still continued with his
drinking sessions with some
of the local workers.
ranks as foreman, a position
usually given to a college or
technical education
graduate
the situation especially when
Ato was absent from work.

5.Economic Environment
B. INDUSTRY ENVIRONMENT
1. Intensity of the rivalry among
the competing players in the
industry
2. The bargaining power of
consumers
reliable company due to
completion of projects on
time.
 Ato being a specialist in this
type of construction was
lead foreman
 Donato Martinez was  The worse thing happened
promoted as foreman in the when Ato’s wife discovered
construction department and his love affair when she
he rose from the ranks as went to Cebu without the
foreman, a position usually knowledge of Ato.
given to a college or  The quarrel ended with the
technical education wife complaining to the
graduate. police and Ato was picked
up for investigation. The
management was alarmed
but no replacement was
available to take the place of
Ato at the Cebu site.
OPPORTUNITIES THREATS
 Low intensity of competitive  The intensity of rivalry
rivalry makes an industry among competitors in an
less competitive. It also industry refers to the extent
increases profit potential for to which firms within an
the existing firms. industry put pressure on one
 If the competitors are of another and limit each
equal size or market share, other’s profit potential
then the intensity of rivalry  If rivalry is fierce, then
will increase. competitors are trying to
steal profit and market share
from one another. As a
result, this reduces profit
potential for all firms within
the industry.
 The idea is that the  a weak buyer, one who is at
bargaining power of buyers the mercy of the seller in
in an industry affects the terms of quality and price,
competitive environment for makes an industry less
the seller and influences the competitive and increases
seller’s ability to achieve profit potential for the seller.
profitability. Strong buyers The concept of buyer power
can pressure sellers to Porter created has had a
lower prices, improve lasting effect in market
product quality, and offer theory.
more and better services. A
strong buyer can make an
industry more competitive
and decrease profit potential
for the seller.
3.The bargaining power of
suppliers
 The right suppliers provide
4.Threats from new entrants
and entry barriers
5.Threats from product
substitute
 Suppliers provide the  When suppliers have
materials a company uses bargaining power, they can
to produce its own goods apply pressure on a
and/or services. Suppliers company by charging higher
provide the transportation of prices, adjusting the quality
those materials. Suppliers of the product or controlling
provide a company with the availability and delivery
services it uses in providing timelines
goods and service to its  Suppliers have the power
customer. to influence the price as well
as the availability of
the most suitable goods or resources/inputs. Suppliers
services at the most suitable are most powerful when
prices and in the right time companies are dependent
frames for your specific on them and cannot switch
business needs. suppliers because of high
costs or lack of alternative
sources.
 The Threat of New
Entrants depends on the
barriers to entry. These
may include technology
challenges, government
regulations, patents, start-up
costs, or education and
licensing requirements.. The
barriers refer to the
existence of high costs or
obstacles that can deter
new competitors from
entering into the industry
 .A profitable industry will
attract more competitors
looking to achieve profits.
The threat of substitutes is the
availability of other products
that a customer could purchase
from outside an industry. The
competitive structure of an
industry is threatened when
there are substitute products
available that offer a reasonably
close benefits match at a
competitive price