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Case 5(Bupol)

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   A Case Study: Fil General Blower Corporation Executive Summary Fil General Blower Corporation, or FilGen, was a fabricator of industrial fans and blowers used in air-conditioning, air handling, and the pneumatic conveying of material which was founded in 1960. They offer design of exhaust and ventilation systems, installation, repair, and servicing of fans and blowers. Considered being one of the pioneers in the industry, they acquired a strong local client base in industry and commercial corporations and in the food and drugs manufacturing industry which resulted to a steady growth. Also, all of its products were made to order, statically and dynamically balanced to industry standards, and often adhered to strict customer specifications. Since the changes is the only thing permanent in the world, changes in industry ’s  standards affects FilGen badly because they failed to adapt or cope up with the changes. Besides to that problem, they also suffered a serious blow when their founder and chairman who was the main source of strategic direction and innovation to the company passed away. The operation was paralyzed and resulted to a steady decline in sales. With the current operational department, containing finance, production and engineering, FilGen cannot achieve its goal given the current situation. The group recommends that they should establish additional departments specifically the marketing and sales department that would boost their sales. Also, investing in research & development is another solution to know what are the needs and wants of the customers. Lastly, since they lost their customers, they should offer big trade discounts or promotions, it would be a good start for them to regain its customers.   2 I. Statement of the Problem With the changes in the industry’s standards, competitors overtaken the Fil General Blower Corporation because they failed to adapt or respond to the changes which leads to a steady decline in their sales. I. Framework of Analysis The group used the following tools in analyzing the problem: SWOT Analysis  –  this tool is used to know what are the internal and external factors that the business needs to consider or disregard. Porter’s Five Forces  Model  –  this tool seeks to explain competitive pressures within an industry to ascertain how powerful, influential, and competitive a firm can be. II. Situational Analysis SWOT Analysis Strengths Being one of the pioneers in the industry of Heating, Ventilation, Air-conditioning and Refrigiration(HVAC/R), FilGen acquired a strong local client base in industrial and commercial corporations and in the food and drugs manufacturing industry. They also offer high quality products which were made to order, statistically and dynamically balanced to industry standards, and often adhered to strict customer specification.   3 Weaknesses FilGen faces a downturn specifically when its founder and chairman who was the main source of strategic direction and innovation of the company passed away. Since the problem occurred at the top, it is considered as a pervasive problem which affects the whole operation. Also, made to order products means high cost, so the tendency for the customers are to switch ways and look for alternatives with lower cost but same quality. In addition, FilGen doesn’t have a sales and marketing department which would be a great help to boost their sales. Opportunities Offering a standardized product to the market would be a feasible opportunity since it is more favorable to the consumers because of the low cost but quality products. Besides, FilGen will also benefit from it as it will lessen the cost to the production, it is a win-win situation. Threats Industry players endeavored to develop new and smarter methods, greater efficiencies and effective air control systems which are in line with the industry’ s standard. It is a serious threat for FilGen since they failed to cope up with the changes, and it refrains them to be ahead over its competitors.   4 Porter’s Five Forces  Model Industry Rivalry Large number of industry players.   Fil General Blower Corporation, being in HVAC/R industry, faces a huge number of competitors. Since the industry is into architecture and engineering for enhancing and building environments, the competitors are eager to produce methods and techniques that are new and relevant to the market. Almost all of the customers are buying these kinds of product in this industry; hence, the competition is extensive. Changes in industry standards. The industry, considering the changes in the standards through the years, has been a quite battle between the companies. In result, industry players are very compliant with the demands and endeavored to develop new and smarter methods of air control systems. Bargaining power of suppliers Just-In-Time inventory system . Fil General Blower Corporation uses this inventory system since they produce product according to the customer specifications which statistically and dynamically balanced to industry standards. So they hold a high bargaining power chip over the suppliers because they can make their product on time with sufficient materials.
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