THE GLOBE CONSTRUCTION COMPANY
CASE ANALYSIS
ERIC LUIS CABRIDO
LEAH B. FLORES
A paper on case analysis submitted to Professor Jewel S. Cabardo for partial fulfillment of the requirements in Management 201 on this 5th
day of April 2019, at the Department of Agribusiness Management
and Entrepreneurship College of Economics
University of the Philippines Los Baños
- POINT OF VIEW
The President of Globe Construction Company
- PROBLEM STATEMENT
How to re-structure the organizational chart of Globe Construction Company to improve its efficiency and effectiveness and be able to adapt in the change of external environment amidst stiff competition?
- ANALYSIS OF RELEVANT CASE FACTS
History of the Company
1950’s | Mr. Eduardo Concepcion started the construction company |
1970’s -80’s | Under the presidency of Ferdinand Marcos, constructed large projects for both government and private sectors, dominating the projects under the government and there was no problem in competition. |
Late 80’s | Change of political administration to Cory Aquino changed the infrastructure environment shifted more on the private sectors, competition increased forcing Globe to reduce its bidding margins. |
At present | Globe still exist and currently working on 18 on-going projects at a price of at least 100M each project, employing 20 project managers who are in-charge of construction operations. The Head Office is in Paco, Manila and maintain their Central warehouse in Antipolo. A workshop was conducted and attended by the top managers to tackle the main issue: discuss ways to improve organizational efficiency and effectiveness. |
Analysis of external environment and internal environment
Macroenvironment
The issue from external environment focuses on addressing the competition on the shift from government sector projects to private sector projects. The biggest threat is the increasing rise of firms engaging in the construction business. The company adjusted by lowering down the margin in their bids, and they became flexible to the ongoing trends in public and private procurement in order to win bid awards of projects. Opportunities from the private sectors will continue to be a trend: As urbanization continues so as construction projects will continue, both in government, and in the private sector.
Internal environment
The most significant strength of the company is being rooted in more than 40 years in the industry. The availability of 20 Project managers and maximizing them reflects capability to accept more projects, which is an advantage of the company. However, to adapt to this change from external environment, the company realized the need to increase their competitive edge by acting on the internal or task environment in order to improve their efficiency and effectiveness. Finishing projects on time can be their challenge and possibly, their weakness. This can be attributed to the delays and confusion in purchasing brought about by an ineffective organizational structure. Hence, re-structuring of the organization is a way to be more flexible and responsive to the needs and goals of the respective construction projects. During the workshop, significant adjustment/s must come from the department that are interdependent - operations, purchasing, accounting and finance.
- SWOT ANALYSIS
Macro / External Environment Task / Internal Environment | OPPORTUNINTIES
| THREATS
|
STRENGHTS
| SO Strategy Make will use the company’s established reputation to acquire more construction projects. | ST Strategy Enhance marketing strategies thru efficient project development.
|
WEAKNESS
| WO Strategy Re-structure organizational chart to accommodate the needs of increasing demand in construction business. | WT Strategy 1. Re-structure to a much more flexible organization to be able to adapt to the demands of the client. 2.Implement work specialization to increase efficiency and productivity |