Royal Printing and Packaging Company
Royal Printing & Packaging Company: A Case Analysis
Presented by GROUP 3
Franquelie Masangue
Margerry Ann Noval
Roxanne Margrete Oclarino
Marvin Non
Mariel Pamulaklakin
Thyrd Peñaflor I. Point of View
We have chosen the perspective of Mr. Jose Baltazar, who is the new manager and son of the founder of the company. He plays the main role in the decision-making process to meet his own targets. However, his decisions are also discussed to his father. Present time in the case is 1989. Jose’s plan will define the company’s future and loose from previous disappointment.
II. Analysis of Case Situation
A. Macroenvironment
There were several prospects for the printing industry during the next ten years: 1) generation of business from elections, political stability and economic recovery, 2) on-going structural reform, 3) projected uptrends in value of production in the manufacturing sector which mostly served by local job and commercial printers, 4) local printers expect a bullish outlook from the service sector and 5) demand for basic school textbooks.
B. Industry
Due to demand in printing and publishing industry, competition is increased. There are estimated 3700 printing establishments in the country of which 2700 are located in Metro Manila. And as of 1987, there are 15 BOI-registered firms.
Credit term to buyers is from 30-60 days. Purchasing departments of institutional buyers decide on the printer according to the: 1) quality of work, 2) ability to meet deadlines and 3) quoted price. Paper comprises 70% of the total production cost. And suppliers grant 3% cash discounts if payments are made within 7 days.
C. Firm
The company recently depended on a few multinational drug companies. There are no substantial liabilities and the machineries were bought first hand. However, the company sales haven’t reached P1 million after being in the business for 27 years. The net margin in 1987 was only about 10% compared to the
Presented by GROUP 3
Franquelie Masangue
Margerry Ann Noval
Roxanne Margrete Oclarino
Marvin Non
Mariel Pamulaklakin
Thyrd Peñaflor I. Point of View
We have chosen the perspective of Mr. Jose Baltazar, who is the new manager and son of the founder of the company. He plays the main role in the decision-making process to meet his own targets. However, his decisions are also discussed to his father. Present time in the case is 1989. Jose’s plan will define the company’s future and loose from previous disappointment.
II. Analysis of Case Situation
A. Macroenvironment
There were several prospects for the printing industry during the next ten years: 1) generation of business from elections, political stability and economic recovery, 2) on-going structural reform, 3) projected uptrends in value of production in the manufacturing sector which mostly served by local job and commercial printers, 4) local printers expect a bullish outlook from the service sector and 5) demand for basic school textbooks.
B. Industry
Due to demand in printing and publishing industry, competition is increased. There are estimated 3700 printing establishments in the country of which 2700 are located in Metro Manila. And as of 1987, there are 15 BOI-registered firms.
Credit term to buyers is from 30-60 days. Purchasing departments of institutional buyers decide on the printer according to the: 1) quality of work, 2) ability to meet deadlines and 3) quoted price. Paper comprises 70% of the total production cost. And suppliers grant 3% cash discounts if payments are made within 7 days.
C. Firm
The company recently depended on a few multinational drug companies. There are no substantial liabilities and the machineries were bought first hand. However, the company sales haven’t reached P1 million after being in the business for 27 years. The net margin in 1987 was only about 10% compared to the