Volta Case Study
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I. Time Context: July 1992II. Viewpoint: Eugene Vicencio, PresidentIII. Major Policy Statement: Volta Inc. is a medium-sized company that specializes in designing and manufacturing equipment, components and parts necessary to build electrical systems of commercial and industrial companies. It aims to provide quality services and overall electrical control systems and become the leading electrical contractor in the Philippines by year 2000.IV. Current Operational PlansManagement: Volta is an incorporation. Mr. Eugene Vicencio is the president in charge of sales. Mr. Eric is the managing director in charge of accounting, finance, operations and engineering.Marketing: Interdependent systems of organizations and relations that are involved in carrying out all of the production and marketing activities involved in creating and delivering value in the form of products and services to intermediate and final customers.Operations: An authorized distributor of Westinghouse Circuit protective devices. Work is done on a “per project” basis. The company was put up to design the electrical system requirements of commercial and industrial customers and sell them the equipment, components and parts necessary to build and install the systems.
Operation is divided into two functions: fabrication and facilitating under fabrication, cutting, bending, mechanical press, welding, and painting; while under assembly involves wiring and baring. Finance: Initial investment amounted to about 500,000.Human Resource: Volta had a workforce totaling to 40. The other owners helped in drawing up electrical plans and physical designs.V. Social Responsibility Applications 1. The company helps society by providing employment. 2. Volta is a company that ensures the quality of its service from components to installation to ensure the safety of the people. 3. Big contribution to government taxes.VI. Statement of the Problem How will Volta Inc. identify and evaluate risks and factors associated with the planned expansion?VII. Statement of ObjectivesLong-term: 1. To be able to provide an overall electrical control system that includes design, manufacturing, installation and commissioning by 1997. 2. To increase the company’s return of investment by 5% annually. 3. Short-term: 1. Hire more high-skilled workers by 1992. 2. To formulate a functional organization structure by 1992.VIII. SWOT AnalysisSTREGHTHS1. Volta Inc. is fast growing.2. Volta had earned generous supplier credit lines.3. The company received the electric equipment giant’s Top Quality Award.4. The company won contracts with large customers.5. Four of the owners are electrical engineers that were employed in electrical service firm, thus they have easy access to the products.6. Volta Inc. never delivers substandard or inadequate designs and components.7. Those who seek installation work but have no manufacturing capability depend on firms like Volta Inc. for their components and part requirements.8. Volta Inc. knew enough key persons in the industry that helped them land generous credit lines.9. The company won contracts with large customers such as San Miguel Corporation, Philippine Appliance Corporation, Coca-Cola Bottling Philippines and Zilog Phil.10. The company made first steps toward installation services through subcontracting.11. The manufacturing capacity already gave the company a stronger foothold versus compertition.WEAKNESSES1. High employee turnover rate.2. Diminishing sales.3. Volta did not have the capability for installation through subcontracting and commissioning services.4. Other owners did not feel their full-time commitment was required.5. Skills has often in short supply in the company.OPPORTUNITIES1. Electrical business is an attractive segment in the industry.2. Customers usually have higher regard for electrical designers and contractors who manufacture their own components and parts.3. By its manufacturing capability Volta’s reputation quickly grew.4. Firms like Volta kept communication lines open in case deals were open to compromises.5. Such companies either cannot afford to stop Volta’s entry into installation projects or can simply do nothing about it.THREATS1. Volta has 10 significant competitors.2. Bigger competitors always had first crack at the best people, since they offered better compensation packages and had stability that employees look for.3. The company encountered much difficulty in filling positions, whether for engineering, manufacturing, sales or administration.4. Workers tend to move to larger apparently more stable, companies after gaining experience at Volta.5. The industry is characterized by a few well-entrenched firms and a considerable number of transients.6. Companies currently in the high-voltage business would not welcome a new entrant.7. Existence of industry mammoths.