Struktura, Inc.

I. TIME CONTEXT: In the Year 1988.
*Since 1981 the PGSEP (Philippine-German Solar Energy Project) begin their operations, still after 7 years of existence, it was to be terminated at the end of the year unless they could pick out a local group to deal with the project commercially. II. VIEW POINT: Anton Co – An entrepreneur and the owner, manager and president of ALCO group of companies to which Struktura, Inc. affiliated. III. MAJOR POLICY STATEMENT

Struktura Inc. is a manufacturing industry fully supervised by ALCO group. It is known for manufacturing the well-crafted steel frame and bases for the solar panels. By 1993, they start to work toward supplying electricity to rural areas in the Philippines through solar panels. IV. CURRENT BUSINESS POLICIES

Management
* All employees, staff or crew undertake specialized training activities to improve their knowledge and skills on various field of interest. * Top Management and their subordinates as long as they are part of the growing team of the company sets their full involvement to the company’s matters. Marketing

* The company fulfills the requirements and expectations of their target market by providing products or services that will bring good outcome to to their clients. Operations
* The services offered by the company are exclusive for selected provinces only. Financial
* The solar home system will be profitable after five years. Human Resource
* Screening/Recruiting of applicants is very crucial. Only those who will meet the requirements would be eligible for the selective position. * Division of work is strictly implemented.

V. STATEMENT OF THE PROBLEM
What are the effective plans should Struktura Inc. perform in order to promote and develop their business to expand commercially? VI. STATEMENT OF OBJECTIVES
Short Term
* To carry out a new business project.
* To generate new products/services offering.
* To effectively sell Solar House System in general public. Long Term
* To meet the country’s electric-powered needs nationwide. * To supply a structured and low-cost energy system in the long run. * To build up target market internationally.
VII. SWOT ANALYSIS

| Internal|
| Strengths * Distributes high-caliber product/ service as it produce best steel frame. * Best substitute in providing energy to rural places. * Considered first option among all suppliers of PV cells. * Environment friendly. * Stable financial performance. * Latest manufacturing facilities. * Technical mastery. * Reliable income. * Usefulness to homes and businesses. * Successfulness in producing steel frames and solar panel bases for PGSEP.| Weaknesses * Pricey setup. * Intensive operation. * Lack of geographical expansion. * High debt risk. * This way of energy only relies on the angle and global positioning of an area to the amount of energy it can receive from the sun.| External| Opportunities * There are many rural zones in the Philippines. * Growing electricity needs. * Favorable popularity of solar power. * Increasing number of customer. * Unstable price of crude oil in the market. * Less competition. * Electricity is an essential need. * Growing population in the rural areas of the Philippines.| Threats * Weather disruption. * The government doesn’t want to make the business profit-oriented. * Rural people want to resettle to city/ urban places. * Rivalry from other oil regulated electricity distributor. * Well-supervised industry. * Economic status is not guaranteed. * Price of commodity is not consistent.|

VIII. ALTERNATIVE COURSES OF ACTION
Alternative A: Constructing and Promoting the Solar Home System Alternative B: Selling of steel frames and solar panel bases that Struktura, Inc. manufactures to new and various potential clients. Alternative C: Focus on gaining Struktura Inc.’s relationship with Karkon and secure a substantial market. IX. ANALYSIS OF ALTERNATIVES

Alternative A: Constructing and Promoting the Solar Home System Advantages
* Meeting the electricity demand of local community.
* Struktura, Inc. expertise in manufacturing for PGSEP guaranteed success.
* Most of the parts are procurable locally.
* Systems will be patterned to last longer.
* Costs for utilization of energy will reduce in the long run. Disadvantages
* Installation costs are too pricey.
* Procurement of large amount of money, time and labor.
* Reliant to the location of the house and the amount of energy it can obtain from the sun. Alternative B: Selling of steel frames and solar panel bases that Struktura, Inc. manufactures to new and various potential clients. Advantages

* Will act as a different set of client incase PGSEP’s operations will be stopped. * The manufacturing of steel frames and solar panels will remain. Disadvantages
* Difficulty in searching a new prospect.
* Finding new customers are more costly than keeping old ones. Alternative C: Focus on gaining Struktura Inc.’s relationship with Karkon and secure a substantial market. Advantages
* Will retain the company exist even after a great loss if ever PGSEP’s operations will stopped. Disadvantages
* The least possible assurance on the growth it can acquire. * Effective promotion should be acquired by Karkon instead of Struktura Inc., since they only provide services under Karkon. X. DECISION STATEMENT

The highly recommended alternative course of action is to constructing and promoting the Solar Home System, which is Alternative A. It will not only help to stop the PGSEP’s termination, which is a big loss for Struktura Inc. but also to advance the expertise of the company and grow competitively. XI. IMPLEMENTATION PROGRAM

Short Range
1. Find and choose a specific location, which have a great demand for electricity. In this case, Burias Masbate is the pilot phase. 2. Examine the necessities of the target location and their desire to bear with the system. 3. Look at the two types of Solar Home Systems that are already flourished which will cater the neediness of the target community considering two different lifestyles, interests and more. These are namely System A and System B. 4. Study the practicality of the project. Provide a minimum of one month to conduct the study. 5. From the data collected, select the best system that suitable to the community. 6. In this case, the frequency of the respondents’ chosen system shows a greater favor for SHS-B. Though its breakdown cost is more expensive than SHS-A, if gives a bigger amount of consumable energy too. 7. Discuss terms of payment that the client deal with and at the same time will not create unreasonable effects or issues to the company’s financial aspects. Long Range

XII. PROPOSED BUSINESS POLICIES
Management
* Training Policy to build a setting which employees can reach their full potential to allow them to make a meaningful contribution towards achieving the company’s vision. * Business Conduct Policy where in any employee must practice good ethical and social behavior in the work area and must be fully aware on any information that deal with any prohibited or unlawful act and if failed to do so, shall promptly report any matter to the top management.

Marketing
* Build a strong link not only with the existing clients but also to future clients. * Fair price setting by the company so that they can earn trust from former clients. Operations
* Safety Policy where management at all times shall carry on safety as one of the most important duty in the operation of an organization. * The service must also be present in different locations, not only in Burias area. Financial

* Financial blueprints must be kept confidential wherein only top management and the company’s investors and accountants are authorized to access. * Financial Statements should formulate monthly.

* All the company’s expenses should properly monitored and budgeted. Human Resource
* Generate a winning team between individual needs and organizational demands. * Conflict of interest is critical matter; there should be understanding and monitoring on the employees’ trustworthiness. * Continuous trainings and seminars is encouraged and every new employee, even existing employees must attentive to it. XIII. MANAGEMENT LESSONS LEARNED FROM THE CASE

* In Management, planning is the basic key. It prevents the uncertainty of having to coerce through a possible opportunity that a negative or even destructive outcome/s can occur. * Successful managers should always move forward and continue to learn even after accomplishing exceptional condition in their business, they should always be open on new ideas and opportunities that will come on their way. * Customer Satisfaction is a commitment. Meeting their expectations will provide the company a greater feedback that potentially to achieve a new and bigger market.