Union Christian College

City of San Fernando, La Union

A CASE STUDY ON PREMIER CEMENT CORPORATION

In Partial Fulfillment of the Requirements

For Management 9 (Production and Operations Management)

Prepared for:

Mr. Nobe C. Langbay

By:

J-Mar S. Benabese

July 6, 2018
SWOT ANALYSIS

FACTS S W O T
The Board of Directors of Premier Cement Corporation
X
was businessmen prominent in their areas of business.
Presidential Decree No. 94 X X
Location of the processing of the initial stages and
X
finishing stages.
Machinery, equipment and other plant assets of the
corporation were acquired through a long term loan from X
the Development Bank.
Deficits in 1971. X
Ineffective and inefficient acquisition of raw materials. X
High cost of goods sold. X

I. TIME FRAME
1972

II. VIEW POINT

Mr. Jose Ylagan

III. STATEMENT OF THE PROBLEM

What are the possible ways to cut the costs being incurred by the
corporation?

IV. STATEMENT OF OBJECTIVES

 To increase net income.
 To expand the business.
 To eliminate conflict of interests of the Board of Directors with
their other related businesses with the corporation.

V. AREAS OF CONSIDERATION
 Presidential Decree No. 94
 Cost of raw materials and operating expenses.
 Acquisition of Equipment and Machineries.
 Location of the facilities.
VI. ALTERNATIVE COURSES OF ACTION
A. To find a new source of raw materials who can provide cheaper
costs but with the same quality of materials.
B. To look for a new nearer location for the finishing process of the
product.

VII. EVALUATION OF ALTERNATIVE COURSES OF ACTION

ADVANTAGES DISADVANTAGES

Board of Directors’ possible

disapproval.
Higher profit margin.
Trust and confidence with the
A
Cut the costs of raw materials. new supplier.

Better financial statements. Difficulty in looking for a new

supplier.

More efficient and convenient.

Faster way to deliver and finish Incur expenses for the relocation
B
the product. of the finishing department.

Will incur lesser travel expenses.

VIII. RECOMMENDATION
I recommend to look for another source of raw materials so that,
the corporation will incur lesser expenses and explain to the Board of
Directors that our company needs to consider our performance rather
than increasing their personal assets with other corporations related
with Premier Cement Corporation.
We need to look for new suppliers in order to increase our profit.
We cannot continue to purchase raw materials from GM Gamboa and
Company any longer. None of us would like to gain in the other but
lost in the other. We need to look for new supplier who can provide us
the same quality of materials in a cheaper price. In this way, we can
improve our financial statements and there is a possibility that we
 can attract more investors and finance the other needs of the
corporation.
We must also pay our liabilities with the banks and avoid
acquiring new equipment and machineries with a loan. If we can
afford to buy new equipment and machineries in cash, then we
should pay in cash as long as there is still enough funds to finance
the operating expenses of the business.

IX. ACTION PLAN

PERSON
ACTION TIME FRAME BUDGET
RESPONSIBLE
Search for new
suppliers of raw Mr. Ylagan 2 weeks P5000
materials.
To enter in a contract
CEO 1 week P20 000
with the new supplier.