Strama Final Edited 180901 For Printing

Strategic Management Paper for BIG PHILIPPINES CORPORATION 1
I. Executive Summary
This Strategic Management paper aims to propose different strategies for
BIG PHILIPPINES CORPORATION (BIG) and help it to become the leading
plastic moulding and cabtyre wire manufacturing company not only in the
Philippines but also globally. BIG aims to be number one in terms of Quality,
Cost and Delivery by manufacturing high quality mould and engineering plastic
parts. BIG seeks to earn their customer’s trust and satisfaction by expanding
their markets and business fields. In addition, the company aspires to be
consistently contributing to society through fair and sound business activity.
The critical success factors for the plastic manufacturing industry were
also discussed in this paper wherein the factors which have been given higher
weights are product, price competitiveness, advertising, market share, financial
position and distribution channels. In general, BIG ranks second among its
competitors in terms of critical success factors. It also provides an assessment
of the strengths and weaknesses of BIG as an organization. BIG’s strengths
include having a competitive pricing strategy, ability to control quality in
production, strong market position, good distribution channels, and stable
financial position. However, BIG needs to empower its production capacity and
workforce, minimize its operating expenses, and promote customer awareness
through effective advertising.
Finally, this paper concludes that the best strategy for BIG PHILIPPINES
CORPORATION is product development by finding innovative and new products
that could be offered to the market. Market penetration strategy and specific
action plans of management, will provide support in achieving the strategic and
financial objectives of the company.

II. INDUSTRY ANALYSIS
BIG is part of the plastics manufacturing industry of the Philippines. This
is an emerging industry of the country wherein many opportunities await the
companies involved. The manufacturing industry, as a whole, experiences
continuous growth which is a good indicator that the country progresses and
many investors are being attracted by the country’s eminent growth.
Manufacturing, as cited by the article “Securing the Future of Philippine
Industries” (2016), comprises more than half of the Philippines's industrial sector
and accounts for almost a quarter of the country's Gross Domestic Product
(GDP). From an annual growth rate of 5.4% in 2012, the manufacturing sector
grew by 10.5% in 2013 and 8.1% in 2014.
Manufacturing industries have higher employment, income and output
multipliers relative to the agriculture and services sectors. Manufacturing also
promotes stronger inter-industry and inter-sectoral linkages, firm productivity,
technological development and innovation. As such, the growth of the
manufacturing industry improves the upgrading and diversification in the
agricultural sector, as well as drives demand for higher value-added services.
Taking all these into consideration, the Philippines is accelerating the
manufacturing sector's competitiveness towards the achievement of sustainable
and inclusive development in the country.
The average growth of the manufacturing sector, in terms of gross value
added, has been steadily increasing since the 1990s. From 1991 until 2000, the
sector grew on the average by 2.5%. Average growth picked up to 4.1% from
2001 to 2010. This further increased to 7.1% in recent years (2011 to 2014),
which is higher than the average growth rates of GDP and the entire industry
sector amounting to 6.0% and 6.4%, respectively.
At the sub-sectoral level of the manufacturing industry, all segments-
consumer goods, intermediate goods and capital goods – have manifested
positive average value added growth rates in the 1990s, the 2000s and the early
2010s. In the 1990s and 2000s, the capital goods segment had seen the most
rapid average value added growth rate, driven primarily by the double-digit
growth rates of the electrical machinery products during the 90s and of the basic
metal industries in the 2000s. Meanwhile, from 2011 to 2014, the intermediate
goods segment has shown the strongest average value added growth rate
driven by the double digit growth rates of the print and publishing sector and the
chemical industry.
The Philippine plastics industry envisions itself to be a proactively
adaptive downstream industry that is able to fully supply the growing and
changing demands of the domestic and export market, create employment
opportunities with a positive well-informed on the environmental image and
perception. Its goals are to satisfy the domestic demand and be a leading
contributor to the Philippine export basket and promote a high level of workforce
productivity. It also aims to be innovative in process and develop a sustainable
industry mindful of their limited/finite resources. Also, it seeks to promote/
develop/ strengthen the plastics recycling industry and create a wide range of
innovative products with the best consumer value.
The Philippine downstream plastics industry refers to the plastic
fabricators and manufacturers which convert plastic resins to industrial and
consumer finished products. Main production processes include film and sheet
extrusion; injection moulding; compression moulding; extrusion blow moulding:
injection blow moulding; injection stretch blow moulding; pipe and profile
extrusion; net and twine extrusion; woven sack extrusion and weaving; sheet
thermoforming, printing, lamination, slitting and bag forming; and recycling.
Plastic is a widespread and pervasive material that is used by a multitude
of industries in the production of numerous products. In the Philippines,
industries such as the electronics, construction, food, cosmetics, packaging, and
automotive are aligned with the viability of the plastics industry. Having a local
source of plastic materials benefits all sectors with its adaptive, just in-time
delivery capabilities, and more importantly softens the impact brought about by
dollar and import requirements.
The Philippine rubber industry aims to propel domestically-produced
rubber products to become a key contributor to Philippine economic
development by transforming the industry to produce world-class, competitive
and high quality rubber products. It seeks to achieve this by (1) upgrade
manufacturing skills, (2) adopting technical and market standards, and (3) linking
with both the local and export markets.
BIG enjoys the advantage of the growing plastic and rubber
manufacturing industry, with its strategic location and access to rich labor
resources. This helps the company in making sound management and strategic
decisions that could enable the success of its attaining of its goals and
objectives.
III. BUSINESS PROFILE
Company Profile
Being a subsidiary of the Japanese company, Yamato Industry, BIG
PHILIPPINES CORPORATION aspires to be no. 1 in terms of Quality, Cost and
Delivery by manufacturing high quality mould and engineering plastic parts. The
company aims to satisfy our customers by providing them with products that
meet or exceed their requirement at the most competitive cost delivered on time.
To achieve this, the employees think BIG: building customer satisfaction by
keeping our workforce skilled with the technical know-how of our process and
properly maintained machineries and equipment; improving quality management
system continually and adherence to all applicable quality and safety
requirements; and growth of the company and employees towards our goals and
commitments.’
The company also prides itself as one of the makers of quality
engineering mould and plastic parts is committed to protect the environment
parallel to boosting its business operations by using products/services with
lesser environmental impact. To achieve this, they ensure compliance with
applicable legal requirements and other requirements from which our company
subscribe and promote optimization of use of resources; mitigate environmental
impact by providing adequate knowledge to our employees for prevention of
pollution and effective solid waste management; and set environmental goals
and commitments that will be reviewed periodically to ensure continual
improvement.
Corporate History
BIG PHILIPPINES CORPORATION was established on July 7, 1997
under the PEZA Registration and it has started its operations in April, 1998. In
2001, the company gained an ISO9001 (QMS) Certification and an ISO14001
(EMS) Certification in 2002 due to its quality and standardized processes and
products.
In December 2016, Japanese company, Yamato Industry acquired stock
of BIG, making it part of the Yamato Industry group of companies. Since then the
company continued improving its processes by acquiring new machineries and
equipments to aid in its production lines.

In December 2016, the company has become DQS ISO/TS 16949 2009
Certified and DQS ISO 9001: 2008 Certified (December).
Company Vision, Mission, Objectives, and Goals

Vision Statement
 Provide our customers with products that meet or exceeds their
expectations.
 To establish an assurance of sufficient inventory of parts according to the
requirements of the customers and to secure the Company’s role of
business partner to its customer.
 To establish a harmonious communication between the customers and
the company and its subcontractors as well.
Review of the Current Vision Statement
Table 1: Vision Analysis
Criteria Yes/No Evaluation

Focused Concept Yes The vision includes the aim

of providing their customers
with products that meet or
exceeds their expectations.
Plausible Chance of Yes Having a good product,

Success logistics, and pricing
strategy, this vision is
plausible to be attained.
Noble Purpose Yes The company aspires to

establish a harmonious
communication between the
customers and the
company and its
subcontractors as well.
Mission Statement
“Big Philippines corporation aims to provide the customers with high
quality products that they can rely on, to establish an assurance of
sufficient inventory of parts according to the requirements of the
customers and to secure the Company's role of business partner to its
customer; and to establish a harmonious communication between the
customers and the company and its supplier itself.”
Review of the Current Mission
Table 2: Mission Analysis
Criteria Yes/No Evaluation

Customers Yes Provide the customers…
Products or Services Yes High quality products …
Markets No Not stated in the mission
Technology No establish an assurance of

sufficient inventory of parts…
Concern for Survival, Yes Secure the Company's role of

Growth, and Profitability business partner to its
customer…
Philosophy Yes Establish a harmonious

communication…
Self-concept Yes To be the leading producer and
marketer
Concern for Public Image Yes To be the leading producer and
marketer
Concern for Employees No Not stated in the mission
Concern for Nation- No Not stated in the mission

building
Proposed Mission Statement
“Big Philippines corporation aims to provide the customers with high
quality products that they can rely on, to establish an assurance of
sufficient inventory of parts according to the requirements of the
customers in the market, and to secure the Company's role of business
partner to its customer; and to establish a harmonious communication
between the customers and the company, and its employees, its supplier,
and the environment itself.”

Company Objectives
BIG PHILIPPINES CORPORATION aims to:

1. Develop and strengthen employees’ skills and knowledge with the aim of
producing/developing a quality product in response to the growing market
demand;
2. Set and maintain policies on the cost reduction and efficient delivery of
services;
3. Ensure clients/customers satisfaction as their highest priority;
4. Do housekeeping thoroughly; and
5. Work positively and cooperatively to meet their goal.
The combined technical knowledge, skills and efforts of all employees
make up the total power of the company. Each of the employees is
responsive for contributing his/her best capabilities and efforts. The company
strives to attain its full potential and help nurture the growth of the company,
to meet the needs of their customers, thus contributing to the prosperity of
the community.
Company Goals
Financial Goals
1. Obtain financing to expand manufacturing capabilities, increase
distribution, and introduce two new product lines.

2. Increase revenues by at least 50 percent each year.
3. Donate at least 10% a year to conservation organizations.
Nonfinancial goals
1. High Standard (1) Quality Product Zero (0) on Customer Claim
2. Out-going Lot Acceptance Rate 99.99%
3. In-process Inspection Rejection Rate > 0.1%
4. On-time Delivery : 100%
5. Customer satisfaction thru Q C D : Rank A
6. Employees of Big Philippines Corporation are knowledgeable in
terms of Good Quality Products
Principles that Guide the Company’s Working Behavior

“We dedicate ourselves to technical development and contribute to society
by producing number 1 - quality products at reasonable price through
efficient production methods and unique control system in which each of our
employees of the company can participate.”

IV. ENVIRONMENTAL SCANNING

IV.1 Internal Environment
a. Management and Organization
The company has the exclusive right to direct the operations and working
force of its business in all aspects. The exclusive rights and prerogatives of the
company shall include but not limited to:
BIG PHILIPPINES CORPORATION defines employees as ‘the person
who is employed by the company, is provided with the salary or a wage in
pursuance of duties by the company. The duties of the employees are
managed by the company in not only its result but also a way and means.
1. To be the judge in determining the capacity of fitness of an
employee for the position or job to which he or she has been
assigned.
2. To set the hours of work, shifts and work schedules.
3. To plan, schedule, direct or control factory operations and
schedules of production.
4. To introduce and install new or improved production methods or
facilities.
5. To designate the work and the employees to perform it.
6. To select and hire new employees.
7. To train and improve their skills and ability.
8. To promote, commend, demote, discipline, and suspend, discharge
or lay-off employees for just causes (after due process).

9. To transfer employees from one job to another or form one shift to
another or to eliminate classification of jobs or employees.

10. To create new or additional classification of jobs or employees or to
eliminate classification of jobs or employees.

11. To make changes in the duties of employees as the company may
consider fit and proper in conduct of its business.

12. The company reserves the right conduct drug test for its
employees at any given time.

13. To establish/set, revise or abolish rules and regulation to carry out
the functions of management.
Board of Directors
CEO/President: Mr. Toshiyasu Shibuya

Director/General Manager: Mr. Tatsuya Sekiguchi
Director/MFG General Manager: Mr. Hidenori Kitagawa
Adviser/Trainer: Mr. Yukio Yamada
Director: Mr. Benedicto Tan
Director/Sr. Accounting Manager: Ms. Rovylyn Leria
Operations Manager: Mr. Raul Capecenio
QA/QC Manager: Mr. Marc Gurrea
Engineering Manager: Mr. Leo Goco
HR/Admin Manager: Ms. Paulita Lodronio
QMS Manager: Ms. Gemma Gabriel
Manufacturing Manager: Mr. Gelbert Lato
Assistant Sales & Warehouse Manager: Ms. Silvernie Cuenca
Injection Assistant Manager: Mr. Teofilo Suñaz Jr.
Engineering Assistant Manager: Mr. Gerarld Andaya
Tooling Assistant Manager: Mr. Joel Dacanay
Maintenance Assistant Manager: Mr. Romeo Lasagas
PPIC Sr. Supervisor: Ms. Dolor Pantonial
Injection Supervisor: Mr. Mario Butiong
Injection Supervisor: Mr. Medardo Patiño
DCC Supervisor: Ms. Raquel Natanauan
Human Resources
The Human Resource Department deals with management of people
within the organization. HRD had a number of responsibilities that come with this
title. The Department is responsible for hiring members of staff; this will involve
attracting employees, keeping them in their positions and ensuring that they
perform to expectation. Besides, the Human Resource Department also clarifies
and sets day to day goals for the organization. It is responsible for organization
of people in the entire Company and plans for future ventures and objectives
involving people in the Company.

The Human Resource Department’s main objective is to bring out the
best in their employees and thus contribute to the success of the Company.
Recruitment of Employees
This is one of the most fundamental roles of the HR department. This is
because this function ensures that the Company under consideration selects the
most skillful and competent person from a sea of applicants at that time. This
function involves evaluation of ability and competency of potential employees in
relation to what the Company needs. This role falls under the Staffing role of
management. If this function is performed well, then the organization will
increase value consequently being on the right pathway to achieve its
organizational and departmental goals and objectives.
Improvement of Compensation Packages
One of the major functions of the HR department is to motivate
employees. This can be done through rewards especially for those who have
done well. The HR department needs to evaluate performance of employees
and those who have exceeded expectations should be compensated for their
actions. Research has shown that rewarding employees for good performance is
the number one incentive for keeping up this trend.
Planning in the Organization
The HR department is also bestowed with the responsibility of planning
future organizational goal in relation to people or clarifying these same goals to
staff members. This function of the department ensures that people in the
organization have a general direction which they are working towards.

Organizations that have a clear direction are always more effective; those
members of staff will be more result oriented rather than just working for the
sake of it. The Department is also responsible for setting day to day objectives
necessary for streamlining activities within the organization and thus ensuring
that work is not just done haphazardly.
The Human Resource Department is placed with the responsibility of
ensuring that it plans adequately for all the organization’s future engagements
that will involve people. One important aspect of this is planning for employees in
the organization. It is important that the organization ensures that all the
employees under its wing are just enough to increase value to the organization.
Employment Policy
 Employment Principles
BIG PHILIPPINES CORPORATION believes that its greatest and most
important asset is its human resources. In consonance therewith the
following principles are hereby set forth:
1. There shall be equality for all. No employee shall be given
preferential treatment, nor discriminated upon. Fairness and justice
shall be the basis for treatment of employees.
2. Each employee shall have equal opportunity to develop his/her talent
in relation to his/her work.
3. All employees are expected to maximize the use of their time and
talent in accomplishing their duties.
4. All employees shall endeavor to build up cooperative and constructive
relationships for the company’s and individual prosperity.

5. The Company is committed to provide a healthy and safe workplace
and working conditions to all its employees. Employees on their part
shall strictly adhere to all safety rules & regulations.
6. Violence, regardless of the circumstances, shall not be condoned. In
resolving conflicts at disputes, only fair, peaceful and civilized
approaches shall be applied.
7. To evaluate each of the employees fairly based on their performance.
8. Honesty shall be practiced at all times.
 Fair Selection of Applicants
All applicants for employment shall be considered on the following basis,
whenever applicable to the position:
A. Educational Attainment
B. Work Experiences
C. Expertise
D. Aptitude Test
E. Applicant’s background
F. Health check
G. Cooperative attitude to the superiors and colleagues
Management reserves the right to accept or reject an application for
employment depending on the applicant’s capability to qualify for the position
and his/her submission of the employment requirements.
 Employment Status
o Regular Employee
An employee who has satisfactorily completed the required
probationary employment period (at least six (6) months) and has met the
Company standards for regularization involving, among other things, job
productivity, job knowledge, work attitude and faithful adherence to the
Company rules and regulations.
o Probationary Employee
An employee who is hired after complying with the pre-employment
requirements and is made to undergo the required probationary employment
period of not more than six (6) months’ to determine his/her capability to meet
the Company standard for regularization.
o Temporary Employee
An employee who is hired on a contractual basis for a specified
period, for the purpose of coping with temporary abnormal increase in
workload, and/or a temporary replacement of a regular employee on leave.
Emergency or seasonal employees may also fall within this category.
o Apprentice
This is an employee who is hired in accordance with the Company’s
apprenticeship program. The Company may in its sole discretion hire for
regular employment an apprentice who, in course of completing the
apprenticeship program has proven his/her capacity to meet the Company
standard for regularization.
o Contractual Employee
An employee who is hired either for a specific period or purpose
usually performs incidental function but essential to the main line of
company’s business operations. He/she is governed by the provisions of the
contract or co-terminus with the project as in the case of project based
employee.
 Occupational Status
o Manager
Refers to a person who has the power to lay down managerial actions
or policies and discretional authority to promote, commend, demote,
discipline, suspend, discharge or lay-off employees for just and proper cause,
and to transfer employees from one job to another or from one shift to
another for just and proper causes.
o Supervisor
Refers to a person, who, in the interest of the employer, effectively
recommends such managerial actions if the exercise of such authority is not
merely routine or clerical in nature but requires the use of independent
judgment.
o Team Leader
Refers to a person, who manages or directs immediate subordinates
under his/her responsibility or accountability.
o Technician/ Office Specialist

It refers to a person who possesses highly specialized skills and
knowledge and/or capability to handle his/her routinely jobs under the direct
supervision his/her immediate supervisor.
o Unskilled Office Associate
Refers to a person who is not required to have any specialized
knowledge or capability to handle his/her daily routine jobs under the direct
supervision of the immediate supervisor.
o Unskilled Factory Associate
Refers to a person who is not required to have any specialized
knowledge or capability to handle his/her daily routine jobs such as to
produce goods, supply parts or materials to the line department and ship
goods under the direct supervision of the immediate supervisor.
 Work Schedule and Meal Breaks
1. Regular working hours shall be eight (8) hours a day or a total of forty-
eight (48) hours a week.
2. Regular working days are from Monday to Saturday except those days
declared by law as legal, regular, special holidays, and by the company
as company holidays.
The Regular holidays as established by law are:
New Year’s Day, Maundy Thursday, Good Friday, Araw ng Kagitingan,
Labor Day, Independence Day, National Heroes Day, Bonifacio Day,
Christmas Day, and Rizal Day.Eidul Ftr&Eidul Adha(movable Date)

The Special Days as established by law are:
January 23 - Chinese New Year
August 21 - Ninoy Aquino Day
November 1 - All Saints Day
December 31 - Last Day of the Year
Other days declared by law as holidays are considered special holidays
which may be non-working or working special holidays.
3. Rest day of all employees is usually Sunday. However, some employees
depending on nature of their work may be required to render regular work,
on Sunday and their rest day scheduled on another day.
4. For purpose of meal & coffee breaks, the company adopts the following
schedule:
a) For Employees on Regular Schedule (Six Days Workweek)
Working hours per day shall be eight (8) hours exclusive of a one (1)
hour meal break (no pay). Eight (8) hours include 10min + 10min
coffee break.
b) For Employees on Two (2) Shifting Schedule (Six Days Workweek)
Working hours per day shall be twelve (12) hours;
 Regular working time of Eight (8) Hours including 10min +
10min Coffee Break
 Three (3) Hours Overtime Work
 One Hour Meal Break (no pay)
c) For Employees on Three (3) Shifting Schedule (Six Days Workweek)

Working hours per day shall be eight (8) hours inclusive of Thirty (30)
minutes break.
d) For Employees on Compressed Workweek Schedule (Five Days
Workweek)
Working hours per day shall be twelve (12) hours;
 Regular working time of Nine hours and thirty minutes (9 ½
hrs.) including 10min + 10min Coffee Break
 One hour and thirty minutes (1 ½ hrs) Overtime Work
 One hour meal break (no pay)
* Timing of a break is subject to the manager’s instruction.
5. Work Schedule
a) For Employees on Regular Schedule (6 Days Workweek):
8:00 A.M. - 5:00 P.M. Monday to Saturday
b) Morning Break time: 10:00 AM to 10:10 AM
c) Lunch Break: 12:00 P.M to 1:00 P.M
e) Afternoon break time: 3:00 PM to 3:10 P.M
 Compensation Policy
o Payment of Salaries
Employees shall receive their salary based on a daily wage rate (No
Work, No Pay).
It shall be the company’s basic policy to review the Employee’s salary
based on each associate annual performance in relation to:
1. Competitive wage or salary rates and benefits for similar work in our
hiring area;
2. The skills required and physical and mental challenge of each job;
3. The performance and capability of each employee; and
4. Business conditions of BIG.
The Payroll period and corresponding paydays are as shown below:
(Payroll Period Payday) Company decide
1st to 15th of the month 25th of the succeeding month
16th to the End of the month 10th of succeeding month
However, if the 10th or the 25th of the month falls on a scheduled
holiday, the payday will be advanced to the last working day preceding the
10th or the 25th. The payment shall be paid directly to the employees or their
respective bank accounts; in cases ATM payroll system is being used.
o Formula in Computing the Daily Wage Rate
In computing the salary or wages of the monthly salaried employees
including legal deductions that may be made on their salaries such as absences,
unauthorized leaves, work stoppages, SSS, PAG-IBIG, PHILHEALTH and
TAXES, the following formula shall be used:
Basic Monthly Salary x 12 months

Daily Wage Rate = _____________________________
314 days or 365 days
The types of compensation to each occupational status such as daily
basis, on a monthly basis depend on a daily-paid wage and on a monthly-paid
basis.
1. Managers are required a qualitative work rather than an hourly
quantitative work. Thereby, they receive a monthly salary.
2. Supervisors, Team leaders, Technicians or the Office Specialists are
required a qualitative work rather than an hourly quantitative work but
being controlled by time. Thereby, they receive a monthly salary
based on a daily wage rate.*
3. Factory employees are normally required an hourly quantitative work.
Thereby, they receive daily wages.
o Premium Pay on Work Rendered on a Rest Day/ Holiday/ Special
Holiday
In order to meet the company business plan and in rare emergency
cases, the Company may require the employees to work on a rest
day/holiday/special holiday. In such cases, employees may not refuse to work
without justifiable reason. If the Company requires the employees to work on a
rest day/ holiday/special holiday, the management will put the information on the
bulletin board prior to a rest day/ holiday/ special holiday work.
1. Rest Day
An Employee who is required to work in his/her rest day which is
Sunday, or any other designated rest day, shall be paid on top of his/her
regular daily wage an additional compensation of thirty percent (30%)
thereof or a total of 130% of his/her regular daily wage.

2. Holiday
An Employee who is required to work on holiday as provided by law,
shall be paid on top of his/her regular daily wage an additional
compensation of hundred percent (100%) thereof or a total of 200% of
his/her regular daily wage. If the holiday coincides with the employees
Rest day, he/she shall be paid an additional compensation of thirty
percent (30%) or a total of 230% of his/her regular daily wage.
3. Special Holiday
An Employee who is required to work on special holidays as provided
by law, shall be paid on top of his/her regular daily wage an additional
compensation of thirty percent (30%) thereof or a total of 130% of his/her
regular daily wage and at least fifty percent (50%) over and above the
basic pay or a total of one hundred fifty percent (150%) if the worker is
permitted or suffered to work on that day which falls his scheduled Rest
day.
Only the management may require employees to work on a rest
day/holiday/special holiday. The employees are prohibited to work on a
rest day/ holiday/ special holiday by their own judgment. An employee,
whose occupational status is at the level of a manager or higher, may not
be paid any additional compensation for worked or unworked rest
day/holiday/special holiday as embodied in the contract as agreed upon
by the parties.
o Overtime
Basically, employees must strive to finish daily jobs that they are
responsible for within eight (8) hours. In case of rapid increases of production
demand and/or other reasons of emergency needs to work overtime, the
management may require an employee to render overtime work.
The definition of overtime by the law is, any service rendered to the
employee by his/her employer beyond the first eight (8) hours of any particular
day. Overtime shall be paid in accordance with the provision of the Labor Code.
Namely it shall be paid on top of his/her regular hour wage an additional
compensation of twenty five percent (25%) of his/her regular hour wage
Employees, whose occupational level is that of a Manager or higher, may
not be paid on additional compensation for overtime service.
All overtime works should have prior approval by supervisor or manager
concerned. Approved overtime works should be in writing except in emergency
cases, in which case submission should be made within twenty-four (24) hours
after the overtime work starts. All approved overtime must be forwarded to the
Administrative Department for checking, and payroll computation. As a matter of
control, overtime services can only be allowed after his/her immediate supervisor
or manager’s approval. Employees will not be paid for overtime works rendered
without prior written approval.
o Night Premium/ Differential
The Company shall pay a night differential of ten percent (10%) of the
basic wage rate for each hour worked between 10:00 p.m. and 6:00 a.m.
Employees who receive a monthly salary may not be entitled for any
additional compensation for night service as contained in the contract and
agreed upon by the parties.
 Employee Benefits
The Company shall provide better work environment and better benefits,
welfare and services to employees. However, these can only be realized by
accomplishing the Company’s Mission and Fundamental Attitude of Doing Work
by following or observing the rules and regulations described in this handbook.
Therefore, the management would like employees to be more efficient and
improve themselves every day. The management believes that every one of
employees knows what he/she should do to make better environments.
 Incentive Leaves
1. A regular employee with at least one (1) year of service in which the
company employs ten (10) or more employees shall be entitled to five (5)
days service incentive leave every year. Unused leave credits shall be
converted into cash at current basic wage, and paid on December 10th of
the year.
2. Incentive leave can be availed of starting January 1 st of each year.
3. An Employee shall be entitled to use his/her incentive leave credits for
his/her own reasons on a specific day. However, incentive leave may be
pre-determined and scheduled by the Company in accordance with the
needs of its operations. The use of incentive leaves credit during plant
shutdown is at the discretion of the Management.

4. BIG encourages its employees to avail of their incentive leave credits.
5. In case of resignation or termination of an employee, he/she shall be
entitled to cash conversion of unused earned service incentive leave
credits and computed on a monthly pro-rated basis.
6. To avail of incentive leave, an Employee must fill out his/her application at
least one (1) day before the first day of leave. All incentive leave
applications filled out by an Employee must show an approval and
signature of his/her immediate supervisor or manager prior to its effective
date.
 Meal Allowance Benefit
1. For regular hours work during ordinary working days, and the Company
Holidays’ worked.
All employees shall be entitled to a free basic meal allowance worth
twenty pesos (P20.00) for having rendered work of at least four (4) hours
during ordinary working days, and the company holidays worked. This
benefit serves as assistance to Employees particularly aimed at
supplementing their daily food expenses while performing regular work in
the Company. Employees who are on leave, whether paid or unpaid or
suspended from their work are not entitled to the said benefit.
2. For workers of working from 22:00 – 6:00 shall be entitled to a free basic
meal allowance and transportation allowance worth sixty-five (65) pesos.
The conditions stipulated above on meal allowance shall apply for
overtime work on Sunday/ rest day/ holiday, is only available once in a 24
hour period.
The meal allowance shall be given during the payroll period. The amount
of the meal allowance is based on the individual employee’s attendance
record during the payroll period.
 Uniform Benefit
The Company uniform shall be provided to all employees. They must
wear the company uniform in accordance with the company rules during work
hours. The purpose of wearing the company uniform is to accomplish goals
together as one (1) team and to protect employees from injuries related to work.
1. Provision of uniform
a) All employees shall be lend with three (3) sets of uniform (polo shirt
etc), free of charge. One (1) pair of safety boots shall also be lent if
necessary, free of charge.
b) Every year thereafter, one (1) piece or set shall be returned to the
company and replaced with a new set, free of charge.
c) Every year thereafter, one (1) pair of safety boots shall be returned to
the company and replaced with a new one, free of charge.
d) In case of stained or damaged uniform within a year, one (1) set or (1)
pair of safety boots shall be returned to the company and replaced
with a new one, free of charge with the approval of the immediate
supervisor.
2. Conditions for the replacement of uniforms during the regular schedule
a) The old uniforms/safety boots must be returned before a replacement
is provided.
b) If the old uniform/safety boots are not returned, the employee shall be
charged the full cost of the replacement uniform/safety boots.
3. Conditions for wearing uniform
a) Do not soil or tear the uniform intentionally.
b) Do not write anything on the uniform
c) Do not wear the uniform outside of the company premises except on
an official business trip.
4. Order for additional uniforms/safety boots
An Employee shall be allowed to order up to a maximum of two (2)
additional uniforms/safety boots within a two (2) year period at his/her
expense.
5. Uniform Design
The uniform design will be decided by a group composed of
employees and Management.
 Medical and Dental Services
1. The Company provides free first aid treatment to all employees.
2. The Company provides first aid medicines for employees.
3. An Employee with at least one-year of service after becoming a regular
employee may take the yearly medical examination, free of charge.
4. This benefit covers only therapeutic or curative medicines. Vitamins and
supplements are not included.
5. The Company reserves the right to conduct investigation regarding the
prescription of the medicines.

6. Unused medicine benefit or balance will be forfeited at the end of the
year.
 Bereavement Assistance
1. Bereavement assistance for the death of the regular employee
a) The Company will give bereavement assistance to the family of a
regular employee who has die.
b) The bereavement assistance shall be Five Thousand Pesos (Php
5,000.00) for the natural or accidental death of a regular employee. If
death was work related the company will give Fifty Thousand Pesos
(Php 50,000.00).
c) This bereavement assistance benefit shall be paid to the legitimate
surviving spouse or legitimate heir(s) or dependent(s) of the dead
employee, as the case maybe.
2. Bereavement assistance for the death of a regular employee’s spouse or
parent(s)
a) The Company will give bereavement assistance to a regular employee
whose legitimate spouse or parent(s) have died due to natural or
accidental causes. This benefit shall apply only to the death of a
regular employee’s spouse or parent(s). The bereavement assistance
will be One Thousand Pesos (Php 1,000.00).
b) A regular Employee who wishes to apply for this benefit must submit a
copy of the death certificate of his/her spouse or parent(s) death to the
Administrative Department.
 Paid Bereavement Leave (BL)
1. All regular employees with at least one (1) year of service after becoming
a regular employee shall be entitled to Bereavement Leave (BL) with pay
of three (3) days per year in case of death of the employee’s parent(s),
legitimate spouse or legitimate child (children). An Employee who wishes
to avail of the BL due to death of his/her parent(s), spouse or child
(children) must submit a leave application to his/her immediate supervisor
or manager subsequent to the start of the leave.
2. The BL may be availed of from the day of the death up to the 10 th
calendar day after the death has occurred.
3. Within seven (7) days from the end of the leave, the Employee must
submit a copy of the death certificate. Failure of the employee to submit
the document shall be ground for cancellation of the leave. If payment
has been made, the amount paid to the employee during the absence
shall be collected through salary deduction in the next payroll.
4. At the end of the year, the unused BL is non-cumulative and non-
convertible to cash.
 Wedding Benefit
1. A regular Employee who gets married is entitled to a wedding benefit of
One Thousand Pesos (Php1,000.00).
2. To receive the wedding benefit the regular Employee must submit a copy
of the marriage certificate. The wedding benefit will be presented in the
name of the President.

 Maternity Leave
1. Every pregnant woman in the private sector, whether married or
unmarried is entitled to maternity leave of sixty (60) days in case of
normal delivery, abortion or miscarriage, or seventy-eight (78) days in
case of caesarian.
2. To be entitled to the maternity benefit, she should be an SSS member
employed at the time of delivery, miscarriage or abortion, she must have
given the required notification to the SSS thru her employer; and her
employer must have paid at least three months of maternity contributions
within the twelve-month period immediately before the date of
contingency.
3. Maternity benefits, like other benefits granted by the SSS, are granted to
employees in lieu of wages and, therefore, may not be included in
computing the employee’s 13th month pay for the calendar year.
 Paid Paternity Leave (PL)
1. All married male employees shall be entitled to seven (7) days’ paid
Paternity Leave (PL) per year in case of delivery of the male married
employee’s legitimate spouse.
2. All married male employees regardless of their employment status (e.g.,
probationary, regular, contractual, project basis) shall be entitled to PL for
up to four (4) deliveries including a miscarriage or abortion.
3. At the end of the year, unused PL is non-cumulative and non-convertible
to cash.
4. A married male employee who wishes to avail the PL due to delivery of
his legitimate spouse must submit a leave application to his immediate

supervisor or manager prior to the start of the leave. He must inform the
Administrative Department about is spouse’s pregnancy as soon as
possible.
5. The PL may be availed of within the 60th calendar day from the day of the
delivery.
6. For the first availment, the employee must submit a copy of his marriage
certificate and the child’s birth certificate within seven (7) days from the
end of the leave. For subsequent deliveries, only the child’s birth
certificate must be submitted within seven (7) days from the end of the
leave.
7. Failure to submit the required documents shall be ground for cancellation
of the leave. If payment has been made, the amount paid to the
employee during his absences shall be collected through salary deduction
in the next payroll.
 Solo Parent’s Welfare Act of 2000
(Implementing Rules and Regulations published on September 7, 2002)
1. In addition to leave privileges under existing laws, parental leave of not
more than seven (7) working days every year shall be granted to any solo parent
employee who has rendered service of at least one (1) year. The seven-day
parental leave shall be non-cumulative and cannot be commuted into cash.
2. “Solo Parent”- any individual who falls under any of the following
categories:
a) A woman who gives birth as a result of rape or crimes against chastity,
even without a final conviction of the offender: Provided, that the mother
keeps and raises the child;

b) Parent left solo or alone with the responsibility of parenthood due to
death of spouse;
c) Parent left solo or alone with the responsibility of parenthood while the
spouse is detained, or is serving sentence for a criminal conviction for at
least one (1) year;
The law applies to the spouses of prisoners, whether or not a final
judgment has been rendered provided they are in detention for a
minimum period of one (1) year;
d) Parent left solo or alone with the responsibility of parenthood due to
physical and/or mental incapacity of spouse as certified by a public
medical practitioner;
e) Parent left solo or alone with the responsibility of parenthood due to
legal separation or de facto separation from spouse for at least one (1)
year: Provided, that he or she is entrusted with the custody of the
children;
f) Parent left solo or alone with the responsibility of parenthood due to
declaration of nullity or annulment of marriage as decreed by a court or by
a church: Provided, that he/she is entrusted with the custody of the
children;
g) Parent left solo or alone with the responsibility of parenthood due to
abandonment of spouse for at least one (1) year;
h) Unmarried mother/father who has preferred to keep and rear his/her
child/children instead of having others care for them or give them up to a
welfare institution;
i) Any other person who solely provides parental care and support to a
child or children provided he/she is duly licensed as a foster parent by the
DSWD or duly appointed legal guardian by the court;
j) Any family member who assumes the responsibility of head of the family
as a result of the death, abandonment, disappearance or prolonged
absence of the parents or solo parent: Provided, that such abandonment,
disappearance, or absence lasts for at least one (1) year.
 Retirement Benefits
All Employees regardless of their position, designation or status and
irrespective of the method by which their wages are paid are entitled to
retirement benefits provided under Republic Act No. 7641 upon compulsory
retirement at the age of sixty five (65) or upon optional retirement at sixty (60) or
more but not 65.
The minimum retirement pay due covered employees shall be equivalent
to fifteen (15) days salary plus 5 days service incentive leave and 1/12 of 13 th
month pay for every year of service, a fraction of at least six (6) months being
considered as one whole year.

Table 3: BIG PHILIPPINES CORPORATION Total Employees (As of May

2017)
Description Male Female Total

Foreigner (Japanese)
General Manager 1 4
Production Manager 3
Administration 3
Accounting 3
Purchasing/Marketing 2
Human Resources 1 11
Production Planner 1
Production Leader
Driver 1
Regular Worker 2
Polymatic Line 3 7 16
Cable Wire 4
Contractual Worker
Driver 2
Warehouseman 3 37
Polymatic Line 1
Cable Wire 19 12
Total Employees: 39 29 68
4.2 Marketing
As part of the BIG’s functional unit, the Marketing Department supports
the company in attaining its goals in line with the company’s vision, mission and
its objectives. The department also helps the company to meet its target sales
by maintaining its existing clients and finding new business that will help to
increase the company’s production and in effect, it will increase its revenue as
well. Marketing and sales are considered as one team under the Sales and
Marketing Department.
Aside from increasing the company sales target, the marketing
department also adds a BIG help in building a good relationship with its
customers. The marketing sales teams ensure that they were able to deal and
deliver their products based on their customers’ needs not only from closing the
sales but most especially having a good service after sales, so that they will be
able to maintain their existing customers and finding new ventures with their new
business.
Duties and Responsibilities within the Marketing Department
A. Marketing Head
Marketing managers or officers are focused mainly on the practical
application and management of an organization's marketing operations. For
marketing managers to be efficient and effective in performing their functions,
they should have excellent communication and analytical skills. In small
organizations, the marketing manager is in charge of the organization's entire
marketing activities and therefore handles formulating, directing and coordinating

marketing activities so as to influence customers to choose the organization's
products over those of competitors.
B. Marketing Manager for Communication
The main role of Marketing Manager for Communication is mainly
supervise advertising, branding, brand language, direct marketing, graphic
design, marketing, packaging, promotion, publicity, sponsorship, public relations,
sales, sale promotion and online marketing. Marketing communication manager
are sometime called “marcom”.
C. Marketing Manager for Research and Development
A research and development manager (R&D manager) is responsible for
research activity, usually in a scientific or technical setting. This usually involves
coordinating research and management of a team or teams involved in
innovation, from theoretical research to new product development. The role is
well suited to doctoral graduates with leadership ability and many holders of
doctoral graduates go into these positions or progress into them.
R&D managers can often expect to provide leadership and guidance to
teams in novel situations or where unusual issues occur, and to be able to
select, evaluate and adapt new techniques to fit new circumstances.
R&D managers are found across all sectors of industry where research
and innovation takes place and often have a crucial role in the development of
new products and business. Many R&D managers take a back seat in active
research and instead guide teams of researchers themselves.

D. Marketing Manager for Product Development
A Product Development Manager specializes in the development and
planning. They are responsible for finding opportunities in the marketing of
consumer products, consumer services, hospital and medical services, and
public service programs. Persons involved in product development must have
skills and understanding in marketing research, sales forecasting, and
promotional planning. Their mission is to successful take a product from concept
to commercialization.
E. Assistant Marketing Manager
Perform duties for the marketing director and even sometimes take over
many duties and responsibilities with clerical work. Under which perform the
product requirements, pricing, product cycle, sales support and management.
Figure 1: BIG Marketing Department Organizational Chart

Target Market
The target market for BIG products is active consumers between the BIG
PHILIPPINES CORPORATION and small contraction firm. They might not be
experts at the molding products they engage in, but they expose themselves the
value and uses of such products.
These active consumers represent a demographic group of well-educated
and successful companies; they are BIG and small company. Despite their
comfortable incomes, these consumers are price conscious and consistently
seek value in their purchases. Regardless of their company status (whether
they fall at the upper or lower end of the target range), they lead active at this
PMP and VCW. They like to be associated with high-quality products but are not
willing to pay a premium price for a certain brand. Current BIG customers tend
to live in Japan and Philippines. However, one future goal is to target consumers
globally as well.
Products Offered
BIG currently offers a line of high-quality technology of extrusion molding
including Plastic Injection, Assembly and Printing, and Mold Fabrication. The
BIG PHILIPPINES CORPORATION ensures that key process equipments are
being maintained. Maintenance may either be corrective, preventive or
predictive. BIG utilizes predictive maintenance methods to continually improve
the effectiveness and the efficiency of production equipment. Some machines
have built in process data monitoring, some are done manually.

The company utilizes a process-focused approach to control operations
and support services related to production and service provision. Their initial
focus is to assure the quality of process inputs, that is employee, material,
facilities and equipment methods. The company believes that their employees
must be equipped to perform the process properly through appropriate
education, training and certification. Equipment and Facilities must be adequate,
accurate, available and properly utilized.
1. Plastic Moulded Products - BIG have their original high-technology of
extrusion molding and earn their customers trust. They do research and
development to meet customers requirement of materials in every field;
ranging construction material field, OA equipment field, and industrial
material field.
Figure 2: BIG Plastic Moulded Products
2. PS-Spacer – PS base material is used for the outer walls of detachable
and collective houses.

3. Window Seal – This is utilized in the housing industry, particularly in the
production of windows products, used for window framing to seal joints or
openings against the passage of heat, cold, dust, draughts, noise, air,
water and other elements.

Promotions
BIG communicates with consumers and retailers about its products in a
variety of ways. Information about BIG—the company as well as its products—is
available via the Internet, direct mailings, and in person. The firms’ promotional
efforts also seek to differentiate its products from those of its competitors.
The company relies on personal contact with retailers to establish the
products in their stores. This contact, whether in-person or by phone, helps
convey the BIG message, demonstrate the products’ unique qualities, and build
relationships. BIG sales representatives visit each store two or three times a
year and offer in-store training on the features of the products for new retailers or
for those who want a refresher. As distribution expands, BIG will adjust o meet
greater demand by increasing sales staff to make sure it stores are visited more
frequently.
Sales promotions and public relations currently make up the bulk of BIG
promotional strategy. BIG staff works with retailers to offer short-term sales
promotions tied to event and contests. In addition, marketing manager is
currently working with several trip marketers to offer BIG items on a promotional
basis. Because BIG also engages in cause marketing through its contribution to
environmental programs, good public relations have followed.
Nontraditional marketing methods that require little cash and a lot of
creativity also lend themselves perfectly to BIG. Because BIG is a flexible
organization, the firm can easily implement ideas such as distributing free water,
skiers, and discount coupons at events. During the next year, the company plans
to engage in the following marketing efforts:

 Create a BIG Tour, in which several employees take turns driving around
the country to campgrounds to distribute promotional items such as BIG
stickers and discount coupons

 Attend machineries races, molding product events, and competitions with
their BIG truck to distribute free water, stickers, and discount coupons for
BIG products.
 Organize BIG hikes departing from participating retailers.
 Hold a BIG design contest, selecting a winning slogan and logo to be
added to the customized line.
Distribution
Currently, BIG is marketed through international and local market
scattered within Japan and Philippines. So far, BIG has not been distributed
through national market chains. BIG obtains much of its information about
overall industry trends in different geographic areas and at different types of
retail outlets from its trade organization, Market Industry Association.
Over the next three years, BIG seeks to expand distribution to retail
specialty shops throughout the nation, focusing next on the Philippines local
market and regions. The firm has not yet determined whether it would be
beneficial to sell through a major national chain.
In addition, BIG plans to expand online sales by offering the customized
product line via Internet only, thus distinguishing between Internet offerings and
specialty ship offerings. Eventually we may be able to place internet kiosks at
some of the more profitable store outlets so consumers could order customized
products from the stores. Regardless of its expansion plans, BIG fully intends to
monitor and maintain strong relationships with distribution channel members.

Pricing
BIG products are priced with the competition in mind. The firm is not
concerned with setting high prices to signal luxury or prestige, nor is it attempting
to achieve the goals of offsetting low prices by selling high quantities of products.
Instead value pricing is practiced so that customers feel comfortable purchasing
new PMP to replace the old. The pricing strategy also makes BIG products good
offering a good value against it competition.

Figure 3: BIG Pricing Scheme

Place
BIG PHILIPPINES CORPORATION is located at Block 3 Lot 2, Daiichi
Industrial Park Ecozone Maguyam Road, Silang, Cavite Philippines and is
engaged in the business of manufacturing of plastic molded product. The office
and plant is located in one of Silang, Cavite economic zones, enabling it to have
a strategic location with access to its suppliers, clients, and work force.
Figure 4: Office and Plant Map of BIG PHILIPPINES CORPORATION
Competitors and Market Share
The Plastic Moulded Products and Vinyl Cabtyre Wire retail sales industry
sells about 5 billion worth of goods annually, ranging from high technology of
extrusion molding. The PMP and VCW market has many entries. Competitors
such as Philflex, Phelps Dodge, and Farma Rubber Industries, which offers the
same products, also grab some of the market. The outlook for the industry in
general—and BIG in particular—is positive for several reasons. First,
consumers are participating in and investing in recreational activities that are

near their company and stores. Second, consumers are looking for ways to
enjoy their leisure time with friends and family without overspending. Third,
consumers are gaining more confidence in the economy and are willing and able
to spend more.
While all of the companies listed earlier can be considered competitors,
none offers the kind of trendy, yet practical products provided by BIG—and none
carries the customized logos and slogans that BIG plans to offer in the near
future. In addition, most of these competitors sell performance products in high-
tech manufactured Plastic. BIG is made of strictly the highest quality of
extrusion molding. Finally, BIG products are offered at moderate prices, making
them affordable in multiple quantities. Consumers can easily replace a set of
products from one season to the next, picking up the newest product line,
without having to think about the purchase.
Philflex owns 57% of the total market share in plastic moulded products
and vinyl cabtyre wires. BIG comes second with 25% market share. Farma
Rubber Industries and Phelpsdodge have the minor market shares with 10% and
8% respectively.
Figure 5: Industry Market Share

4.3 Financials
Through the three-year period, BIG PHILIPPINES CORPORATION has
increased its Net Sales and Cost of Sales. In addition, the company’s Net
Income also continuously increased throughout 2015 to 2017.
There was an increase of P31,173,357 in Net Sales, P27,483,201 in Cost
of Sales, and P4,056,980 in Net Income from year 2015 to 2016. An increase of
7% in Net Sales, 6% in Cost of Sales, and 24% in Net Income is observed. For
year 2016 to 2017, the company also experienced an increase in its Net Sales
(P25,538,173), Cost of Sales (P23,014,475), and Net Income (P1,063,452). An
increase of 5% is also evident in these areas of the company’s Statement of
Comprehensive Income.
The eminent increase in the company’s net income is a good sign that is
on the right track – financial-wise. This indicates that there is a good opportunity
for the company to use its incurred income to venture into new strategies that
could help it improve its situation in its industry and in consequence, its
profitability.
The company could also use their financial data in planning the next step
in maximizing its funds. It could decide to make further investments that could
help improve its product offerings, or to emphasize its current market position
through market penetration, or any other strategic decisions that could entail
expenses and costs.

Table 4: BIG PHILIPPINES CORPORATION 3-year Income Statement
BIG PHILIPPINES CORPORATION

Daichii Industrial Park Ecozone, Silang, Cavite
Statement of Comprehensive Income
For the year ended December 31, 2017
(Amounts in Philippine Currency)
BIG PHILIPPINES CORPORATION Sales for 2015 – 2017
2015 2016 2017

Net Sales 479,590,104 510,763,461 536,301,634
Cost of Sales 432,806,310 460,289,511 483,303,986
Gross Profit 46,783,794 50,473,950 52,997,648
Other Operating Expenses 32,250,338 17,212,044 32,250,338

Operating Profit 479,590,104 18,223,612 19,134,793
Other Income (cost) 432,806,310 12,160,708 12,768,744
Profit before tax 46,783,794 30,384,320 31,903,536
Income Tax Expense 9,115,296 29,571,750 9,115,296
Net Income 17,212,044 21,269,024 22,332,476
From 2015 to 2016, the company experienced 7% increase in Net Sales
(Php31,173,357), 6% increase in Cost of Sales (Php27,483,201), and 24% in
Net Income (Php4,056,980). From 2016 to 2017, BIG incurred 5% increase in
Net Sales (Php25,538,173). Cost of Sales (Php 23,014,475) and Net Income
(Php1,063,452).
Table 5: BIG’s Net Sales, Cost of Sales, and Net Income Increase
2015 vs. 2016 2016 vs. 2017

Inc/ Dec (in % Growth Inc/ Dec (in % Growth
Php) Php)
Net Sales 31,173,357 7% 25,538,173 5%
Cost of Sales 27,483,201 6% 23,014,475 5%
Net Income 4,056,980 24% 1,063,452 5%
BIG PHILIPPINES CORPORATION’s profit margin is a category of
profitability ratios calculated as net income divided by revenue, or net profits
divided by sales. The company has obtained an increasing stability in its profit
margin from 2015 to 2017. This indicates that its income for every peso
increased by P0.04.
Table 6: BIG’s Profit Margin
2015 2016 2017

Net Income 17,212,044 21,269,024 22,332,476
Net Sales 479,590,104 510,763,461 536,301,634
Profit Margin 0.036 0.042 0.042
The gross profit margin of the company is a financial metric used to
assess a company’s financial health and business model by revealing the
proportion of money left over from revenues after accounting for the cost of
goods sold/sales. Gross profit margin, or gross margin, is calculated by dividing
gross profit by revenues.

BIG’s gross profit margin indicates earnings after product cost has been
deducted. There is an increasing trend in the gross profit margin from 2015 to
2017. This may be due to decrease in cost of increase in price of the product.
Table 7: BIG’s Gross Profit Margin
2015 2016 2017

Cost of Sales 432,806,310 460,289,511 483,303,986
Net Sales 479,590,104 510,763,461 536,301,634
Gross Profit 0.098 0.099 0.099
Margin
4.4 Production Process
Adherent with Company’s main credo anchored on customer’s trust and
satisfaction, BIG’s Operation Department offers technical support in producing
quality products using high technology in metal processing and product
development to attain reliable results.
BIG’s production/operations management process combines and
transforms various resources used subsystem into value added product/services
in a controlled manner as per the policies of the Company. This is that part of the
Company, concerned with the transformation of a range of inputs into the
required (products/services) having the requisite quality level.
The set of interrelated management activities are involved in
manufacturing of Plastic Molded products. The same concept is extended to
services management, and then the corresponding set of management activities
is called as operations management.

Concept of Production
BIG’s production function is that part of the organization, concerned with
the transformation of a range of inputs into the required outputs (products)
having the requisite quality level.
Production is defined as “the step-by-step conversion of one form of
material into another form through chemical or mechanical process to create or
enhance the utility of the product to the user.” Thus production is a value addition
process. At each stage of processing, there will be value addition.
Production System
The production system of BIG PHILIPPINES CORPORATION is that part,
which produces products of an organization. It is that activity whereby resources,
flowing within a defined system, are combined and transformed in a controlled
manner to add value in accordance with the policies communicated by
management.
The production system has the following characteristics:
1. Production is an organized activity, so every production system has an
objective.
2. The system transforms the various inputs to useful outputs.
3. It does not operate in isolation from the other organization system.
4. There exists a feedback about the activities, which is essential to
control and improve system performance.

Classification of Production System
BIG’s production systems can be classified as Job Shop, Batch, Mass
and Continuous Production systems.
1. Job Shop System
BIG’s job shop production is characterized by manufacturing of Plastic
Molded products designed and produced as per the specification of
customers within prefixed time and cost. The distinguishing feature of this is
low volume and high variety of products. A job shop comprises of general
purpose machines arranged into different departments. Each product
demands unique technological requirements, demands processing on
machines in a certain sequence.
Characteristics of Job Shop System
The Job-shop production system is followed when there is:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge
because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each
product, capacities for each work centre and order priorities.

Advantages
Following are the advantages of job shop production:
1. Because of general purpose machines and facilities variety of products
can be produced.
2. Operators will become more skilled and competent, as each job gives
them learning opportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for creative methods and innovative ideas.
Limitations
Following are the limitations of job shop production:
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.
2. Batch Production
BIG’s batch production is defined as: a form of manufacturing in which the
job passes through the functional departments in lots or batches and each lot
may have a different routing.” It is characterized by the manufacture of limited
number of products produced at regular intervals and stocked awaiting sales.

Characteristics
Batch production system is used under the following circumstances:
1. When there is shorter production runs.
2. When plant and machinery are flexible.
3. When plant and machinery set up is used for the production of item in a
batch and change of set up is required for processing the next batch.
4. When manufacturing lead time and cost are lower as compared to job
order production.
Advantages
Following are the advantages of batch production:
1. Better utilization of plant and machinery.
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
Limitations
Following are the limitations of batch production:
1. Material handling is complex because of irregular and longer flows.

2. Production planning and control is complex.
3. Work in process inventory is higher compared to continuous
production.
4. Higher set up costs due to frequent changes in set up.
3. Mass Production
BIG’s manufacture is of discrete parts or assemblies using a continuous
process are called mass production. This production system is justified by
very large volume of production. The machines are arranged in a line or
product layout. Product and process standardization exists and all outputs
follow the same path.
Characteristics
Mass production is used under the following circumstances:
1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production
capacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.

7. Flow of materials, components and parts is continuous and without any
back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.
Advantages
Following are the advantages of mass production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations
Following are the limitations of mass production:
1. Breakdown of one machine will stop an entire production line.
2. Line layout needs major change with the changes in the product
design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.

4. Continuous Production
BIG’s production facilities are arranged as per the sequence of production
operations from the first operations to the finished product. The items are
made to flow through the sequence of operations through material handling
devices such as conveyors, transfer devices, etc.
Characteristics
Continuous production is used under the following circumstances:
1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product.
5. Planning and scheduling is a routine action.
Advantages
Following are the advantages of continuous production:
1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely
automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.
Limitations
Following are the limitations of continuous production:
1. Flexibility to accommodate and process number of products does not
exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited.
BIG’s Production Management
Production management is a process of planning, organizing, directing
and controlling the activities of the production function. It combines and
transforms various resources used in the production subsystem of the
organization into value added product in a controlled manner as per the policies
of the organization.
Objectives of Production Management
The objective of the production management is ‘to produce goods
services of right quality and quantity at the right time and right manufacturing
cost.
1. Right Quality - The quality of product is established based upon the
customer’s needs. The right quality is not necessarily best quality. It is
determined by the cost of the product and the technical characteristics as
suited to the specific requirements.

2. Right Quantity - The manufacturing organization should produce the
products in right number. If they are produced in excess of demand the capital
will block up in the form of inventory and if the quantity is produced in short of
demand, leads to shortage of products.
3. Right Time - Timeliness of delivery is one of the important parameter to
judge the effectiveness of production and operation department. So, the
production department has to make the optimal utilization of input resources to
achieve its objective.
4. Right Manufacturing Cost - Manufacturing costs are established before the
product is actually manufactured. Hence, all attempts should be made to
produce the products at pre-established cost, so as to reduce the variation
between actual and the standard (pre-established) cost.
BIG’s Operating System
Operating system converts inputs in order to provide outputs which are
required by a customer. It converts physical resources into outputs, the function
of which is to satisfy customer wants i.e., to provide some utility for the customer.
In some of the organization the product is a physical good.
Concept of Operations
BIG’s operation is defined in terms of the mission it serves for the
organization, technology it employs and the human and managerial processes it
involves. Operations in an organization can be categorized into manufacturing
operations and service operations. Manufacturing operations is a conversion
process that includes manufacturing yields a tangible output: a product,

whereas, a conversion process that includes service yields an intangible output:
a deed, a performance, an effort.
Framework for Managing Operations of the Company
BIG’s Operation Manager is concerned with planning, organizing, and
controlling the activities which affect through established system ensuring
efficiency in the process.
The method, as exercised entails precision in the production thereby
cascade down to maximizing output with least costs. Cost reduction requires
minimizing unit costs basing its productive activities at most favorable low cost
production.
1. Planning - activities that establishes a course of action and guide future
decision-making is planning. The Operations Manager defines the objectives
for the operations subsystem of the organization, and the policies, and
procedures for achieving the objectives or the demands of its clients. This
stage includes clarifying the role and focus of operations in the organization’s
overall strategy. It also involves product planning, facility designing and using
the conversion process.
2. Organizing - activities that establishes a structure of tasks and authority.
Operation Manager establishes a structure of roles and the flow of information
within the operations subsystem. They determine the activities required to
achieve the goals and assign authority and responsibility for carrying them out.
3. Controlling - activities that assure the actual performance in accordance
with planned performance. To ensure that the plans for the operations
subsystems are accomplished, the Operations Manager exercises control by

measuring actual outputs and comparing them to planned operations
management. Controlling costs, quality, and schedules are the important
functions here.
Behavior
Operation Manager is concerned with how their efforts to plan, organize,
and control affect human behavior. They also want to know how the behavior of
subordinates can affect management’s planning, organizing, and controlling
actions. Their interest lies in decision-making behavior.
Models
As operation managers plan, organize, and control the conversion
process, they encounter many problems and must make many decisions. They
can simplify their difficulties using models like aggregate planning models for
examining how best to use existing capacity in short-term, break even analysis
to identify break even volumes, linear programming and computer simulation for
capacity utilization, decision tree analysis for long-term capacity problem of
facility expansion, simple median model for determining best locations of
facilities etc.
Objectives of Operations Management
Objectives of operations management can be categorized into customer
service and resource utilization.
a. Customer Service
The first objective of operating systems is the customer service to the
satisfaction of customer wants. Therefore, customer service is a key objective

of operations management. The operating system must provide something to a
specification which can satisfy the customer in terms of cost and timing. Thus,
primary objective can be satisfied by providing the ‘right thing at a right price at
the right time.
These aspects of customer service specification, cost and timing are
described for four functions. They are the principal sources of customer
satisfaction and must, therefore, be the principal dimension of the customer
service objective for operations managers.
Manufacture Goods of a given, requested or Cost, i.e., purchase price or
cost of obtaining goods.
1. Duration or time required for treatment.
2. Wait or delay from requesting treatment to its commencement.
Generally an organization will aim reliably and consistently to achieve
certain standards and operations manager will be influential in attempting
to achieve these standards. Hence, this objective will influence the
operations manager’s decisions to achieve the required customer service.
b. Scope of Production and Operations Management
Production and operations management are concern with the conversion
of inputs into outputs, using physical resources, so as to provide the desired
utilities to the customer while meeting the other organizational objectives of
effectiveness, efficiency and adoptability. It distinguishes itself for mother
functions such as personnel, marketing, finance, etc., by its primary concern

for ‘conversion by using physical resources. Following are the activities which
are listed under production and operations management functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials and maintenance management
c. Location of Facilities
Location of BIG’s plant facilities for its operations is a long-term capacity
decision which involves a long term commitment about the geographically
static factors that affect a business organization. It is an important strategic
level decision-making for an organization. It deals with the questions such as
where our main operations should be based. The selection of location is a key-
decision as large investment is made in building plant and machinery.
An improper location of plant may lead to waste of all the investments
made in plant and machinery equipments. Hence, location of plant should is
based on the company’s expansion plan and policy, diversification plan for the
products, changing sources of raw materials and many other factors. The
purpose of the location study is to find the optimal location that will results in
the greatest advantage to the company.

d. Product Design
BIG’s product design deals with conversion of ideas into reality. Every
business organization has to design, develop and introduce new products as a
survival and growth strategy. In the case of BIG, developing new products and
launching them in the market is the biggest challenge faced by the
organizations.
e. Process Design
BIG’s process design is a macroscopic decision-making of an overall
process route for converting the raw material into finished goods. These
decisions encompass the selection of a process, choice of technology, process
flow analysis and layout of the facilities. Hence, the important decisions in
process design are to analyze the workflow for converting raw material into
finished product and to select the workstation for each included in the workflow.
f. Production Process Flow
The production process flow of BIG starts with receiving of purchase
materials. Upon the delivery of the materials, there would be an internal
receiving inspection to ensure that all the materials delivered are quality and
undamaged. If the raw materials received are rejected, they are to be returned
to the vendor and processed by the Quality Control Claims.
If the raw materials received are approved, they are forwarded to the
insulation process and then to wire stranding process. Afterwards, it would be
forwarded to sheath extrusion process and packing process. The finished
products will then undergo to quality control process before shipping to its
buyers.
Figure 6: BIG Production Process Flow
g. Production Facilities
Packing Process Shrink Pack Process
Wire Stranding Process

Insulation Machine
Cooling Process for Polymatic Line Extrusion Line

Finishing Process Air Chamber Machine
Powder Machine Process PS Spacer Line
Sheathing Process Marking Process
Figure 7. BIG Production Facilities
h. Plant Layout
Plant layout refers to the physical arrangement of facilities. It is the
configuration of departments, work centers and equipment in the conversion
process. The overall objective of the plant layout is to design a physical
arrangement that meets the required output quality and quantity most
economically.
Figure 8: BIG Plant Layout
i. Storage of Materials
There are minimum 2 kinds of storage needed for the manufacturing
process. That is Raw Materials Warehouse and Finish Good Warehouse.
 Finish Good Warehouse refers to the storage of ready to ship products.

 Raw material is simply that. Storage of materials needed for production.
Finished Goods Warehouse PS Spacer Product at FG Warehouse
Raw Materials Warehouse Raw Materials Warehouse
Figure 9. BIG Storage of Materials (Raw Materials & Finished Goods

Warehouse)
j. Quality Control and Assurance
Before the releasing of BIG products, it has to undergo another
process which is under the quality and control assurance. It is where the
products are being screened to make sure of its quality.
Figure 10. BIG Quality Control and Assurance Process
k. Management Information System

BIG’s product development of new electrical components is used to
translate the needs of BIG’s customers given by marketing into technical
specifications and designing the various features into the products to these
specifications. The company’s management information system (MIS) is
essential in making sure that the operations and production of the factory is in
order as well as having the decision making accurate and timely.
l. Corporate Social Responsibility
BIG, however, do not have any corporate social responsibility (CSR)
programs as of now. We propose that the company should have free trainings
and seminars for out-of-school-youths living within the company’s location.
These trainings and seminars may be about livelihood and skills training that
could aid their beneficiaries with needed competencies that could be used in
getting a stable job and thus would enable them to have a better future.
This program will also be beneficial for BIG as it may become a threshold
for the company in finding good potential employees that could become assets
for the company. Upon giving trainings to out-of-school-youths within the locality
of the company, there is a chance of unraveling great talents and skilled
employees that could be helpful in gaining the company’s goals.

Evaluation of BIG’s Internal Environment
a. Internal Factor Evaluation Matrix (IFE) – Assessment of Strengths and
Weaknesses:
The Internal Factor Evaluation matrix summarizes and evaluates the
strengths and weaknesses in the functional areas of the business. It also
provides a basis for identifying and evaluating relationships among those areas.
The matrix below illustrates the company’s internal factor evaluation. BIG
has a strong market position; meaning, its products enjoy a big portion of the
market share. Also, because of it having one source of its products, it has the
ability to control the quality in production. In addition, BIG is already a stable and
established institution for decades and its founders understand the target market
and product line, thus, enabling them to maximize the company’s potential in
profit maximization through its distribution channels. The company also has
strong financial position as indicated in its three-year income statement.
Despite all these strengths, BIG is also weak in some aspects, which may
hinder it in attaining its goals. One of these weaknesses is the limited production
capacity it has because it only has one production supply. Also, the company
incurs high operating costs despite having limited number of workers. BIG also
needs to expand its horizon through marketing campaigns as it has limited
number of consumers around the country who are aware of the company’s
products.
Table 8: BIG PHILIPPINES CORPORATION Internal Factor Evaluation Matrix

Key Internal Factors Weight Rating Weighted

Score
Strengths:
1. Pricing 0.10 4 0.40
2. Good financial Position 0.15 3 0.45
3. Ability to control quality in 0.12 4 0.48

production
4. Strong market position 0.13 3 0.39
5. Distribution Channels 0.12 3 0.36
Weaknesses:
6. Limited Production capacity 0.09 1 0.09
7. High Operating Expense 0.10 1 0.10
8. Limited number of consumers 0.05 2 0.10

around the country is aware of BIG
products.
9. Limited Number of Workers 0.08 1 0.08
10. Need for more advertising 0.06 1 0.06
TOTAL 1.0 2.51
b. Competitive Profile Matrix (CPM)
Every company, whether small, medium, or large, aims one thing: to
become successful in one’s industry. To accomplish this, several factors should
be considered along with the awareness of one’s competitors and their status
within the industry. The Competitive Profile Matrix is thus used. It is a tool that
compares the firm and its rivals and reveals their relative strengths and
weaknesses.
The most important factor to be successful within one’s industry is the
product being offered to the market. This factor is given a weight of 0.27. The
uniqueness and quality of one’s product is important to get the loyalty and
patronage of the target market.
The second important factor is the price competitiveness, with a weight of
0.21. Being in a very competitive industry, most companies offer products with
similar level of quality. However, if a competitor is able to give the customers with
similar quality products but in cheaper prices, they would likely get these
customers and leave the other companies in the dust. Hence, a good pricing
strategy is needed as well.
A good promotion and advertising is likewise essential to get a company
and its products known to its target market. In this way, the company may be
able to show what it can offer to the customers and encourage them to patronize
them. Through this, a company may be able to get a large chunk of the market
share.
Other important factor for a company’s success within the industry is
having a sound financial position and having strategic distribution channels.
These also impact how a company may move towards its goals.
Philflex generated the highest weight score of 3.03 and is the strongest
company among the industry. This is because most of its critical success factors
generated a rating of 4. The company’s products are patronized because of its
competitive pricing and thus generating a major part of the market share.
Next to Philflex is BIG, which generated a weighted score of 3.03. This is
because of its products is also patronized by the customers. Farma Rubber is on
the third place in terms of industry competitiveness with total weighted score of
2.69 and Phelpsdodge ranked last with a total weighted score of 2.61.
Table 9: BIG Competitive Profile Matrix

BIG PHILFLEX PHELPS DODGE FARMA RUBBER
Critical Success Weight Rating Weighted Rating Weighted Rating Weighted Rating Weighted
Factors
Score Score Score Score
1. Product 0.27 4 1.08 4 1.08 3 0.81 3 0.81
2. Price 0.21 3 0.63 4 0.84 3 0.63 3 0.63

competitiveness
3. Advertising 0.18 3 0.52 3 0.52 2 0.36 2 0.36
4. Market Share 0.13 2 0.26 4 0.52 3 0.39 2 0.26
5. Financial 0.12 3 0.36 3 0.36 2 0.24 3 0.36

Position
6. Distribution 0. 09 2 0.18 2 0.18 2 0.18 3 0.27

Channels
TOTAL 1.00 3.03 3.50 2.61 2.69
3.2 External Environment

b. Demographics
BIG’s plant and office is located on Daiichi Industrial Park Ecozone which
is within the heart of Silang, Cavite. Its location advantages are abundance of
labor and assurance of industrial peace, a very secure industrial subdivision and
situated in an industrial peace zone teaming with enthusiastic, multi-skilled,
highly trained and easily trainable labor force. This is a good advantage for the
company as having skilled workforce will help it to produce quality and high-
value products.
The article “Silang, Cavite” (2010) states that the first-class municipality of
Silang, Cavite is is approximately 45 kilometers south of Manila. General Trias,
Dasmariñas and General Mariano Alvarez (GMA) bound it on the south and on
the west by Amadeo. Silang is noted for its relatively cool and invigorating
climate. It is strategically located at the intermediate zone of the Metropolitan
Manila area. With adequate accessibility, the municipality of Silang is within the
urbanizing development influence of the Metro Manila area.

c. Economic
BIG could be considered as one of the economic pillars in Silang, Cavite.
The company, being an international company which caters to global clients,
provides huge investments to the city and its locality. It has also been providing
stable employment to most of the residents within the city as the company offers
sustainable and well-compensated jobs. Hence, many residents have the
opportunity to earn income for their family and to be used in fulfilling their
respective needs and wants, thus, spreading income throughout the locality. In
addition, the company pays valuable taxes to the government that could aid in
generating sufficient funds that could in turn be used to the improvement of the
municipality.
In the article titled, “Silang, Cavite” (2010), the said municipality is one of
the fastest growing local government units in the province of Cavite. Numerous
commercial establishments, which include major shopping malls, fast foods,
groceries, convenient stores, restaurants and other service-oriented businesses,
are mostly concentrated in the town proper. Industrial establishments are located
in the outskirts of the municipality. It has the greatest number of universities in
the province.
Silang, like most of the towns in the province of Cavite, depends on a
mainly agricultural economy. The primary crops grown in the area are coconut,
coffee, corn, banana, pineapple, and tree crops like mango, lansones, caimito,
santol, jackfruit, guava, and avocado. Fertile soils and abundant water sources
make Silang suitable not only for common commercial crops but also for high
value and exotic crops production. Most of the local farmers practice
intercropping to increase land productivity and lessen soil erosion. Fruit

production exceeds the demand of the municipality’s population, thus, supply
excesses are marketed to Metro Manila and neighboring urban centers.

A number of poultry and swine farms are also located in some rural
barangays. Manufacturing and trade, aside from agriculture are Silang’s other
major sources of income. Trade and investments grew tremendously with the
influx of both Manila-based and foreign investors. Total investments were
estimated at P2.5 billion between 1996 and 2004, which helped bring about the
employment of 3,000 people.

Despite the slowdown of progress in the year 2004, Land Value still
soared, allowing investors to infiltrate and start business. The investment trend
resulted in the increase in the price of prime realty from P3,000 to P15,000 per
square meter and from P150 to P500 per square meter for raw lots in interior
barangays. Trade establishments in Silang include gasoline stations,
convenience stores, lumber/hardware traders, groceries, resorts, and hotels.

d. Socio-cultural
BIG affects society because of its link to the workforce within the locality.
Providing competitive and well-compensated jobs to the community enables
them the opportunity to fulfill their needs and wants and have a comfortable
lifestyle. There is also an opportunity for parents to send their kids to school and
attain their needed education, thus, contributing to the emergence of skilled and
competent new generation of workers. The company, being in the heart of an
economic estate, is centered with employees who are hardworking, skilled,
competent, and easy to be trained. This may be due to the fact that Caviteños,
and generally speaking, Filipinos, are good workers that are asset to the
company they are working for. They also value their work, thus, they do their
best to give the best they can to produce the best products and services to their
clients.
e. Legal and Political
The DTI’s Bureau of Product Standards lists certain plastic products as
among the products for mandatory certification under mechanical/building and
construction materials and chemicals and other consumer products.
The Technical Working Group (TWG) for the Chemicals Industry Cluster –
which includes plastics – serves as the coordinating mechanism through which
industry concerns are addressed. The TWG is organized into four action tasks,
namely:
1. For Trade and Investment Matters – covering issues regarding industry
clustering, tariff concerns, smuggling, and trade and investment
promotions;
2. For Talent Development and Innovation – covering issues on skills
development and introduction of innovation and process;
3. For ease of Doing Business – covering issues on assistance that the
government could provide the industry as regards streamlining the permit
and documentary requirements which overlaps among various agencies;
and
4. For Environmental Practices – covering issues on plastic banning, life
cycle assessment (LCA) and the use of the same as basis of scientific
and technological studies in crafting laws that would affect the industries.
Among the TWGs activities are the following:

1. Ease of Doing Business. With the release by the DENR of EMB MC
2014-003 (or the Supplemental Guidelines for DENR AO 2007-23,
prescribing additional requirements for the issuance of the priority
chemical list (PCL)), the TWG was able to obtain a PCL exemption for
the industry. In addition, a series of workshops for Ease of Doing
Business from January to February 2015 was conducted to come up
with a roadmap to streamline the processes of issuance of permits and
licenses by various regulatory agencies for the chemicals industry.
2. Human Resource Development. TESDA and SPIK conducted a
workshop in consultation with the various chemicals industry
associations in October 2014 to come up with Training Regulations for
a) plant process operators and b) QA/QC laboratory technicians. These
training regulations are currently being reviewed by TESDA. After
finalizing the training regulations, TESDA and SPIK shall proceed to
work on the Assessment Tools for the skills identified.
3. Greening the Industry Roadmaps. In the 2nd Scoping Mission for
Greening the Industry Roadmaps project conducted by GIZ, the Plastics
Industry was identified as one of the priority sectors. Following this, BOI
and PPIA collaborated in conducting a workshop on ISO 14000-
Environmental Management and ISO 50001-Energy Management
System Standard for PPIA-member companies in February 2015.
4. Comprehensive Tariff Review. A Comprehensive Tariff Review (Line-by-
line tariff review) for the chemicals industry was conducted, in
preparation for ongoing and future FTA negotiations.

5. ASEAN-Japan Chemical Safety Database (AJCSD) Seminar. The
AJCSD’s objective is to come up with a database of all regulated
chemicals in ASEAN and Japan, as well as share chemical regulatory
information among ASEAN countries. A mini-seminar on the AJCSD
Project was facilitated by experts from the Japan Ministry of Economy,
Trade, and Industry (METI) and the National Institute of Technology and
Evaluation (NITE). The TWG, regulatory government agencies, and the
private sector have also agreed to establish a national database
containing the regulations for Philippine chemical products. BOI is
currently coordinating with PEZA to assess the feasibility of using their
Chemical Importation Tool (CIT) database facility for this purpose.
These programs are beneficial for BIG as it can use these for the
improvement of the company’s processes and programs. Also the company
adheres to the Philippine Constitution which mandates how the company should
operate and how it can help emphasize the importance of workforce to the
company’s success. It also illustrates the importance private sector for the
economy as a whole.
Section 18, Article II of the 1987 Philippine Constitution states that, “the
State affirms labor as a primary social economic force. It shall protect the rights
of workers and promote their welfare.” This is true with BIG as it acknowledges
the importance of its workforce and employees for the success of the company.
Because of this, BIG creates a healthy and happy working environment for its
employees through its programs and incentives.

Section 20, Article II of the Philippine Constitution also declares that “The
State recognizes the indispensable role of the private sector, encourages private
enterprise, and provides incentives to needed investments.” Hence, BIG strives
to improve itself so that it can attract more investors that could help them in
innovating new products and technologies that could be offered to its market.
Through its successful operations, BIG could contribute to the private sector’s
role in helping improve the country’s economy.
f. Technological
The company’s original high technology of extrusion molding and earn
customers trust. BIG products are currently carried international and by local
small retail stores that specialize in Plastic Molded Products Wire. The high
quality, extrusion molding, and unique message of the Plastic Molded Product
have gained BIG a following among consumers international and local.
There is a current rise in the injection extrusion molding technology that
the company uses. Injection moulding is a manufacturing process for producing
parts by injecting material into a mould. Injection moulding is one of the chief
processes for producing plastic items. It is a fast process that can deliver a large
numbers of identical items - from high precision engineering components to
small disposable consumer goods. The use of this process has enabled the
extension of boundaries of design in plastics, and also helped in the substitution
of conventional materials, thereby reducing the weight of the end product and
providing immense design freedom.
The following are some of the key improvements in injection moulding:

1. Multiple component injection technologies - Under the spectrum of
multiple component injection technologies are the sandwich technologies.

Sandwich technologies comprise co-injection, mono-sandwich, gas
injection technique (GIT) and water injection technique (WIT). In the co-
injection method, two melts are injected into the machine’s cavity through
one gate, one after the other. In mono-sandwich method, two materials
are injected with one injection unit via one passage into the cavity. In GIT,
the gas used is mostly nitrogen, which is injected into the part to replace
the melt in the core and create a hollow space. GIT enables production of
parts with high wall-thicknesses and/or material accumulations. It
provides increased strength and stiffness at lower or equal part weight. It
enables reduction of weight up to 50% and decreasing of the material
costs. Likewise it enables reduction of the cooling/cycle time up to 50%,
lowers clamp force and machine costs. GIT enables less sink marks,
parts with less distortion, and improved part quality. In WIT, there are two
processes - the short-shot process and the full shot process. In the short
shot process, high speed shooting is required during the filling process in
a transparent tool. Many consider WIT to have relatively more advantages
than the GIT. WIT provides lesser cycle times, smaller and constant wall
thickness with less warpage, large part diameters, and smoother inner
surfaces. Additionally, water is cheaper than gas and is incompressible.

2. Micro injection moulding - To produce very small components using the
injection moulding process requires maximum possible accuracy and
precision. The core of the processing of plastics of minimal size is the
micro injection unit. Modern day injection moulding machines are
controlled by a built-in computer. The computer controls all the actions of

the machine based on sensor fed information, thereby ensuring
consistent output and shot to shot quality.

g. Environmental
BIG is also committed to giving back to the community by contributing to
local conservation programs. Ultimately, the company would like to develop and
fund its own environmental programs that would help conserve the surrounding
of the company and factory.
h. Competitors
Competitors are Philflex and Phelpsdodge, which offers the same
products, also grab some of the market. The outlook for the industry in general—
and BIG in particular—is positive for several reasons. First, consumers are
participating in and investing in recreational activities that are near their
company and stores. Second, consumers are looking for ways to enjoy their
leisure time with friends and family without overspending. Third, consumers are
gaining more confidence in the economy and are willing and able to spend more.
While all of the companies listed earlier can be considered competitors,
none offers the kind of trendy, yet practical products provided by BIG—and none
carries the customized logos and slogans that BIG plans to offer in the near
future. In addition, most of these competitors sell performance products in high-
tech manufactured Plastic. BIG is made of strictly the highest quality of extrusion
molding. Finally, BIG products are offered at moderate prices, making them
affordable in multiple quantities. For instance, a BIG PS Spacer sells for $15.99,
compared with a competing high-performance Philflex and Phelpsdodge for
$29.99. Consumers can easily replace a set of products from one season to the
next, picking up the newest product line, without having to think about the
purchase.
A survey conducted by BIG revealed that 67 percent of responding
consumers prefer to replace their PMP more often than other molding products,
so they are attracted by the moderate pricing of BIG products. In addition, as
the trend toward health-conscious activities and concerns about the natural
environment continue, consumers increasingly relate to the BIG philosophy as
well as the firm’s contributions to socially responsible programs.
Evaluation of BIG’s External Environment
a. External Factor Evaluation (EFE) Matrix –

Assessment of Opportunities and Threats
BIG has built some impressive strength while looking forward to new
opportunities. Its dedicated founders, the growing number of brand-loyal
customers, and sound financial management place the company in a good
position to grow. However, as BIG considers expansion of its product line and
entrance into new markets, the firm will have to guard against marketing myopia
(the failure to recognize the scope of its business) and quality slippages. As the
company finalizes plans for new products and expanded Internet sales, its
management will also have to guard against competitors who attempt to
duplicate to products. However, building strong relationships with consumers,
retailers, and suppliers should help the art competitors.
Plastic Molding Products is competitive although few retailers new about
the products. BIG has a big existing client abroad, but with fewer distributors
locally. BIG are prepared with any competitors and any environment conditions
that may compete with their products because of their high quality and original
technology product line. The operating expense of BIG is very high.
A very simple explanation: with lower sales and higher operating
expenses the profit will be greatly affected that will lead to poor development for
the corporation. BIR has annual findings regarding their tax payments. Every
time they pay their taxes the BIR has findings that lead to discrepancy of the
payment made to the said government institution.
The table below illustrates the external factor evaluation matrix used to
analyze the opportunities and threats that may affect the BIG PHILIPPINES
CORPORATION. This may be useful in generating and implementing new
strategies and tactics to ensure the positioning of the company within its market
niche.
Table 10: External Factor Evaluation Matrix
Key External Factor Weight Rating Weighted

Score
Opportunities
1.Opportunity to introduce new and 0.10 3 0.30
additional products
2. Available Market Segments 0.15 3 0.45
3. Precluded Clientele 0.12 2 0.24
4. The company can reach more 0.13 3 0.39

customers via website
5.Opportunity to gain more profits 0.12 3 0.36
Threats
6.Currency fluctuations 0.09 2 0.18
7. Increasing number of Competitors 0.10 2 0.20
8. Rising wages of employees 0.05 1 0.05
9. Rising imported raw material price 0.08 1 0.08
10. Increasing corporate tax 0.06 1 0.06
TOTAL 1.0 2.31
b. Michael Porters Five Forces of Competitive Analysis
 Rivalry among existing competitors
Silang, Cavite is an industrial first-class municipality. The growth has been
greatly influenced by its proximity to Metro Manila and the national government's
industrial boom. It becomes the choice location for business enterprises being in
a crossroad of development south of Manila.
The industrial development in the area paves the way in encouraging
different manufacturing industries like plastics and rubber. BIG PHILIPPINES
CORPORATION is one of them.
Phelps Dodge, Farma Rubber and Philflex are considered to be the direct
competitors of BIG PHILIPPINES CORPORATION. They all offer same line of
products. Although BIG has differentiated products, the competition is still tough
because consumers can switch brands easily if there will be changes in the price
offering. Given these situations, rivalry among competing firms is high.
 Threats of new entry
Considering the high costs of scale barrier, which is the large capital
requirement, the limited information of the technology and the tough competition
among industry players, there’s still a possibility for incoming competitors due to
the booming of the industry. The potential entry of new competitor model is high.
 Threats of substitute
Since there is a BIG number of manufacturing business around the area,
competition from substitute products in plastic and rubber industry tends to be
robust. BIG always see to it that they are advanced in terms of technology
because of the fear of having more substitutable products in the market. The
potential development of substitute product is high.
 Bargaining power of suppliers
The suppliers bargaining power is deemed to be high also because there
are few substitute for the raw materials. Same is true if there will be a switching
of raw materials.
 Bargaining power of buyers
Buyers always look for quality products but still are considered as price
conscious. This is due to the fact that there is high competition in the area.
Consumers have a wide range of choices which made them a bit of being the
price setter. This reason gives the bargaining power of buyers to be high.
Threats of New Entry- High
 Competitors such as
Philflex and Bargaining Power of
Phelpsdodge, which Buyers- High
offers the same products
 BIG do not have  BIG had a big
established brand existing client
reputation abroad with
less
distributors
locally
 There are
many
substitute for
the same
products
Rivalry among Existing

Bargaining Power of Competitors- High
Suppliers- High
 There are many
 Few substitute competitors
raw materials  Products may be
exist. differentiated but still
 Cost of remains highly
switching raw substitutable
materials is
high
Threats of Substitute- High
 Buyers can switch from

other companies that offer
same products
Figure 11: Michael Porters Five Forces of Competitive Analysis for BIG
PHILIPPINES CORPORATION
V. Strategy Formulation
5.1 Grand Strategy
In using the Grand Strategy Matrix, BIG is located in the Quadrant I with
an excellent strategic position. Despite having second place in the industry
market share, the company continuously incurs an increase in its net sales and
net income. However, BIG is focused on selected products that it offers to the
market, namely the Plastic Moulding. It is thus recommended that to improve its
place in the market, the company should venture to product development
strategy, by innovating new product lines that they could offer to the market. The
company should also venture in strategies that could help it penetrate the market
further and achieve a bigger market share.

Figure 12: Grand Strategy for BIG PHILIPPINES CORPORATION
5.2 TOWS Matrix
The TOWS Matrix is a relatively simple tool for generating strategic
options. By using it, you can look intelligently at how you can best take
advantage of the opportunities open for the company, at the same time
minimize the impact of weaknesses and protect the business against threats.
Used after detailed analysis of BIG threats, opportunities, strength and
weaknesses, it helps us consider how to use the external environment to take
strategic advantage, and so identify some of the strategic options available.
Many strategies could be ventured to help BIG achieve its goals and
objectives. One of the strategies that the company could execute is the
investment of new and innovative promotion and marketing campaigns. BIG

should take advantage of technological advances, such as social media
marketing, web marketing, etc., to create better marketing and advertisement
campaign. Having a good marketing campaign enables the company to be
known within the market and have better position among the industry.
The company could also opt to produce a new line of products that it
could introduce to the market. In this way, BIG could have the advantage of
offering ingenious products that are not yet launched by other companies. This
could give the company a cutting edge in the industry. BIG should also provide
high value and flexible product that its competitors have not yet produced and
create a strong suppliers-and-customers relationship.
Thus, the company should also procure and use efficient and modern
equipments for production. This strategy is essential to ensure that the products
that the company produces are of quality and would have minimal problems and
hitches. Likewise, it is also important that the company should buy from local
suppliers to minimize cost from raw materials. This is strategic for the company
as it would be efficient to get raw materials within the locality of the company as
it would be easier to order supplies and return the reject ones to the supplier.
The transportation cost is also minimized and optimized using this method.
Table 11: TOWS Matrix
Strengths Weaknesses
Pricing Limited production capacity
TOWS
High Operating expenses
Good financial position
Limited number of
Ability to control quality consumers around the
in production country is aware of MPC
product
Strong market position
Limited number of workers
Distribution channel
Need for more advertising
Opportunity SO strategies WO strategies

Opportunity to introduce Take advantage of technological More focused marketing strategy
new and additional product advances to create better W3, W5, O1, O2, O3, O4
advertisement campaign.
Available market segments S1, S3, O2, O4 Procure and use efficient and
modern equipments for production.
Precluded clientele Develop and produce new product W1,W2, W4,
S1, S2, S5, O5
The company can reach O1, O3, O5
more customers via website
Opportunity to gain more

Threatsprofits ST strategies WT strategies
Currency fluctuations Provide high value product than Reduce threat of competition by
competitors and create a strong developing flexible product.
Increasing number of suppliers customer relationship. S2, T2, W5
competitors S3, S5, T2, T5
Hire contractual personnel who
Rising wages of Buy from local suppliers to minimize gained sufficient skills and expertise
employees cost from raw material S1, S4, T1, in the production W1, W2,
T3, T4 W3, W4, T1, T3, T5
Rising imported raw
material price
Increasing corporate tax
5.3 Internal-External Matrix
BIG could maximize its strengths and take advantage of the opportunities
it has. Also, BIG could make amendments to deal with its weaknesses and
threats. The company’s internal-external matrix shows that BIG is within the
Quadrant V. Being in this quadrant means that the recommended strategies are
hold and maintain: namely market penetration and product development
strategies. These strategies provide further opportunities for BIG to expand itself
by introducing new and innovative products to its customers and to penetrate
new markets.
Figure 13: Internal External Matrix of BIG PHILIPPINES CORPORATION
5.4 Qualitative Strategic Planning Matrix
The Quantitative Strategic Planning Matrix is a strategic tool which is
used to evaluate alternative set of strategies. The QSPM incorporate earlier
stage details in an organize way to calculate the score of multiple strategies in
order to find the best match strategy for the organization.
Table 12: QSPM for BIG PHILIPPINES CORPORATION
Keys Factors Weight Product Market

Development Penetration
AS TAS AS TAS
Strengths
Pricing 0.10 3 .30 4 .40
Good financial Position 0.15 4 .60 3 .45
Ability to control quality in 0.12 4 .48 4 .48
production
Strong market position 0.13 2 .26 2 .26
Distribution Channels 0.12 2 .24 3 .36
Weaknesses
Limited Production capacity 0.09
High Operating Expense 0.10
Limited number of consumers 0.05
around the country is aware of

BIG products.
Limited Number of Workers 0.08
Need for more advertising 0.06 2 .12 2 .12
1.0
Opportunity
Opportunity to introduce new and 0.10 4 .40 4 .40
additional products
Available Market Segments 0.15 3 .45 4 .60
Precluded Clientele 0.12 3 .36 2 .24
The company can reach more 0.13 3 .39 4 .52

customers via website
Opportunity to gain more profits 0.12 4 .48 3 .36
Threats
Currency fluctuations 0.09
Increasing number of Competitors 0.10
Rising wages of employees 0.05
Rising imported raw material price 0.08
Increasing corporate tax 0.06

1.0
Total Sum of Attractiveness 4.08 4.19
Scores
5.5 Financial Ratios (Projected Financial Statement)
BIG has shown a continuous increase in its income over the financial
years of 2018 to 2020. The projected 3-year income statement of the company
used a 5% increase to generate the projected data.
Table 13: Projected 3-year Income Statement of BIG
2018 2019 2020

Net Sales
563,116,716 591,272,551 620,836,179
Cost of Sales
507,469,185 532,842,645 559,484,777
Gross Profit
55,647,530 58,429,907 61,351,402
Other
Operating Expenses 33,862,855 35,555,998 37,333,798
Operating Profit
20,091,533 21,096,109 22,150,915
Other Income (cost)
13,407,181 14,077,540 14,781,417
Profit before tax
33,498,713 35,173,648 36,932,331
Income Tax Expense
9,571,061 10,049,614 10,552,095
Net Income
23,449,100 24,621,555 25,852,633
Current Ratio
Current ratio can be used to take the measurement of a company’s
financial health. The higher the current ratio, the more capable the company is of
paying its obligations as it has a larger proportion of asset value relative to the
value of liabilities. The current ratio can give a sense of the efficiency of a
company’s operating cycle or its ability to turn its product into cash. Companies
that have trouble getting paid on their receivables or have long inventory
turnover can run into liquidity problems because they are unable to alleviate their
obligations. BIG has a 3.4285 current ratio computed by dividing the current
assets by the current liabilities. Compared to the average ration of 2.0 for the
industry in general, we can infer that BIG is performing better in terms of liquidity.
Table 14: Current Assets/Current Liabilities

2017
Current Assets Php 2,400,000,000
Current Liabilities Php 700,000,000
Current Ratio 3.4285
Operating Cash Flow Ratio
Having an operating cash flow ratio of 1.17, it shows that BIG have more
cash flows from operations than current liabilities and with an estimated
difference of 100,000,000 in terms of pesos. This means that BIG have the
financial capability of penetrating the market and developing more products
without affecting its liquidity or capability to pay its current liabilities from its
operational cash flows.
Table 15: Cash Flows from Operations/Current Liabilities
2017
Cash Flow from Operations 800,000,000
Current Liabilities 700,000,000
Current Ratio 1.17
Inventory Turnover
Inventory turnover measures how fast a company is selling inventory and
is generally compared against industry averages. A low turnover implies weak
sales and therefore, excess inventory. A high ratio implies either strong sales
and/or large discounts. The inventory turnover ratio of 7.00 of BIG in 2017 is
unfavorable as compared to its 7.81 and 7.07 inventory turnover ratio in 2015
and 2016 respectively.
Table 16: Inventory Turnover

2015 2016 2017
Inventory Turnover 7.81 7.07 7.0

Asset Turnover Ratio
The asset turnover ratio of 4.47 of BIG means that every 1 peso sales is
equivalent of assets that produce a 4.47 peso equivalent of sales. By penetrating
the market deeper, sales will increase and as a result, the asset turnover will
also increase.
Table 17: Sales or Revenue/Total Assets

2017
Sales Php 536,301,631
Total Assets Php 2,400,000,000
Asset Turnover Ratio 4.47
Accounts Receivable Turnover Ratio
Computed by dividing sales by the amount of receivables, the receivable
turnover ratio of BIG is 11.67. This ratio indicates that BIG is efficient in collecting
its receivables.
Table 18: Receivable Turnover Ratio
2017
Sales Php 536,301,631
Receivable Php 62,586,400
Receivable Turnover Ratio 11.67
Asset Turnover Ratio 4.47
Debt Ratio
Having a debt ratio of 0.36 that means 36% of the company’s total assets
are being finance by debts. This is below the industry average of .4692 which
means that BIG is more solvent and has financed its assets through equity better
than others.
Table 19: Debt Ratio
2017
Total Liabilities Php 864,000,000
Debt Ratio 0.36
Debt to Equity Ratio
This means that the total assets are being financed more through equity
than through debt.
Table 20: Debt Equity Ratio

2017
Total Liabilities Php 864,000,000
Shareholder’s Equity Php 1,515,789,000
Debt/Equity Ratio 0.57
Profit Margin
Computed by dividing the net income by the net sales, a profit of .042
means that 0.42% of its sales will go to its net income and the remaining
99.58%represents the expenses. Although 11% is quite low compared to
averages, we can infer that BIG is profitable by looking at the peso value.
Profit Margin=Net Income/Net Sales
Table 21: Profit Margin
2017
Net Income Php 22,332,476
Net Sales Php 536,301,634
Profit Margin 0.042
Return on Assets
Return on Assets show earnings that were generated from invested
capital (assets). The ROA figures give investors an idea of how effectively the
company is converting the money it has to invest into net income. A higher ratio
is better because the company is earning more money on less investment.
ROA = Net Income/Total Assets
Table 22: Return on Assets Ratio

2017
Return on Asset (ROA) 0.018
Return on Equity
The ROE shows the common shareholders how effectively the money
they invested is employed. The higher the ratio percentage, the more efficient
management is in utilizing its equity base and the better return it to investors.
BIG can increase its ROE of 0.028 since employing the strategy of product
development and market penetration can be absorbed by its capital. This means
that the marginal benefit will accrue to the shareholders because BIG will not
rely that much on invested capital in financing market penetration and product
development.
ROE = Net Income/ Shareholder’s Equity

Table 23: Return on Equity Ratio

2017
Shareholder’s Equity Php 771,929,825
Return on Equity (ROE) 0.028
VI. Strategies, Programs, Activities, Tasks, and Resources (SPATRES)
This section of the paper contains the proposed strategies, programs,
activities, tasks, and resources that BIG PHILIPPINES CORPORATION should
employ.
The first strategy is Product Development wherein the company should
research and create a new set of product that it could be offered to the
customers and the market.
The programs under this strategy include: (1) expanding the product lines
to include customized technology of extrusion molding products; (2) practicing
value pricing to make BIG products offering a good value against its competitors;
(3) procuring and using efficient and modern equipments for production; and (4)
implementing training program geared towards enhancing knowledge and skills.
Under these strategies, the following are the activities involved: (1) the
company should conduct research for the most in-demand product; (2) conduct
assessment for customer needs; (3) hire contractual personnel who gain
sufficient skills and expertise in production; (4) practice efficient maintenance of
equipment and infrastructures; and (5) conduct seminars and different job
training method. These activities will be tasked to the Top Management, the
Production and Operation Management, and the Human Resources
Management Department.
The second strategy to be implemented by BIG PHILIPPINES
CORPORATION is Market Penetration. This would be beneficial for the company
so that it could break through the market and generate greater market share.
The programs involved for this strategy are as follows: (1) entering new
geographic markets and distribution channel; (2) setting a low initial price in
order to penetrate the market quickly; (3) increasing brand awareness through
advertising; and (4) doing product campaign and promotions on construction
firms and construction supply businesses.
To accomplish the programs listed above, the company should do the
following activities: (1) use internet for market share growth to compete more
effectively; (2) practice online selling; (3) attract large numbers of buyers quickly
and win a larger market; and (4) price reduction for loyal customers. These
should be tasked to the Top Management and Marketing Department.
Table 24: SPATRES for BIG PHILIPPINES CORPORATION
Objective:
To introduce two new product lines—Plastic Moulded Products and Vinyl Cabtyre
Wire.
Strategies Programs Activities Task Resources
1. Expand the 1. Research for Top P5,000,000

product lines to the most in Management
include demand
customized product.
technology of
extrusion molding 2. Conduct P1,000,000
products. assessment for
customer needs
2. Practice value
3. Hire P3,000,000
pricing to make
contractual Production
Product BIG products
personnel who and
offering a good
Development gain sufficient Operation
value against its
skills and Management
competitors
expertise in
3. Procure and use production
efficient and
modern 4. Practice
equipments for HRMD

production efficient
maintenance of
4. Implement equipment and
training program infrastructures.
geared towards
enhancing 5. Conduct
knowledge and seminars and
skills. different job
training method
Objective 2:
To enter to new geographic markets, including local markets and to expand online
sales by offering the customized product line via Internet only, thus distinguishing
between Internet offerings and specialty ship offerings.
Strategy Progress Activities Tasks Resources
1. Enter new 1. Use internet

geographic for market share Top P10,000,000
markets and growth to Management
distribution compete more
channel effectively
2. Practice P100,000
2. Setting a low
Market initial price in order online selling.
to penetrate the
Penetration market quickly
Marketing
3. Attract large P2,000,000
3. Increase brand
numbers of Dept.
awareness
buyers quickly
through
and win a larger
advertising.
market
4. Doing product 4. Price

campaign and reduction for P1,500,000
promotions on loyal customers.
construction firms
and construction
supply businesses.
REFERENCES:
 Securing the Future of Philippine Industries. (2016). Retrieved on August
25, 2018 from the World Wide Web:
http://industry.gov.ph/category/manufacturing/
 Securing the Future of Philippine Industries. (2016). Retrieved on August
25, 2018 from the World Wide Web:
http://industry.gov.ph/industry/plastics/
 Silang, Cavite. (2010). Retrieved on August 25, 2018 from the World Wide
Web: http://www.wowcavite.com/towns-and-cities/silang-cavite-
population-historygeography-barangay-gov-officials/
 Thomas, G. (2013). Recent Innovations in Injection Moldings. Azo
Materials. Retrieved on April 15. 2017 from the World Wide Web:
http://www.azom.com/article.aspx?ArticleID=8553

Strama Final Edited 180901 For Printing

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Strama Final Edited 180901 For Printing

Uploaded by

Copyright:

Available Formats

Strategic Management Paper for BIG PHILIPPINES CORPORATION 1

This Strategic Management paper aims to propose different strategies for

BIG PHILIPPINES CORPORATION (BIG) and help it to become the leading

their markets and business fields. In addition, the company aspires to be

consistently contributing to society through fair and sound business activity.

weights are product, price competitiveness, advertising, market share, financial

competitors in terms of critical success factors. It also provides an assessment

of the strengths and weaknesses of BIG as an organization. BIG’s strengths

include having a competitive pricing strategy, ability to control quality in

production, strong market position, good distribution channels, and stable

workforce, minimize its operating expenses, and promote customer awareness

through effective advertising.

CORPORATION is product development by finding innovative and new products

financial objectives of the company.

II. INDUSTRY ANALYSIS

BIG is part of the plastics manufacturing industry of the Philippines. This

is an emerging industry of the country wherein many opportunities await the

companies involved. The manufacturing industry, as a whole, experiences

many investors are being attracted by the country’s eminent growth.

Manufacturing, as cited by the article “Securing the Future of Philippine

grew by 10.5% in 2013 and 8.1% in 2014.

Manufacturing industries have higher employment, income and output

multipliers relative to the agriculture and services sectors. Manufacturing also

promotes stronger inter-industry and inter-sectoral linkages, firm productivity,

technological development and innovation. As such, the growth of the

manufacturing industry improves the upgrading and diversification in the

agricultural sector, as well as drives demand for higher value-added services.

Taking all these into consideration, the Philippines is accelerating the

manufacturing sector's competitiveness towards the achievement of sustainable

and inclusive development in the country.

The average growth of the manufacturing sector, in terms of gross value

sector amounting to 6.0% and 6.4%, respectively.

At the sub-sectoral level of the manufacturing industry, all segments-

consumer goods, intermediate goods and capital goods – have manifested

The Philippine plastics industry envisions itself to be a proactively

changing demands of the domestic and export market, create employment

opportunities with a positive well-informed on the environmental image and

productivity. It also aims to be innovative in process and develop a sustainable

industry mindful of their limited/finite resources. Also, it seeks to promote/

innovative products with the best consumer value.

The Philippine downstream plastics industry refers to the plastic

fabricators and manufacturers which convert plastic resins to industrial and

extrusion; injection moulding; compression moulding; extrusion blow moulding:

thermoforming, printing, lamination, slitting and bag forming; and recycling.

Plastic is a widespread and pervasive material that is used by a multitude

of industries in the production of numerous products. In the Philippines,

industries such as the electronics, construction, food, cosmetics, packaging, and

dollar and import requirements.

The Philippine rubber industry aims to propel domestically-produced

rubber products to become a key contributor to Philippine economic

development by transforming the industry to produce world-class, competitive

with both the local and export markets.

BIG enjoys the advantage of the growing plastic and rubber

III. BUSINESS PROFILE

Being a subsidiary of the Japanese company, Yamato Industry, BIG

PHILIPPINES CORPORATION aspires to be no. 1 in terms of Quality, Cost and

To achieve this, the employees think BIG: building customer satisfaction by

properly maintained machineries and equipment; improving quality management

system continually and adherence to all applicable quality and safety

The company also prides itself as one of the makers of quality

engineering mould and plastic parts is committed to protect the environment

parallel to boosting its business operations by using products/services with

lesser environmental impact. To achieve this, they ensure compliance with