FACTS of the CASE
* Struktura, Inc. (SI) is a corporation owned by ALCO Group of Companies. * SI is practically a machine shop that manufactures car air-conditioners for Karkon & others, steel frames for PGSEP and die casting needs of electronic companies. * 1987 Sales amounted P1.32M of which roughly 72% are derived from other companies of ALCO. * PGSEP is also testing the solar home system (SHS), a stand-alone photovoltaic energy generation unit suited for a single household. * SHS unit come in two variants: the 28 watt-peak (wp) and the other is 50wp. * The components of SHS, except for the solar panels, were locally available. * PGSEP will be terminated by the year-end and is worried that their efforts in propagating the technology would be useless unless it identified a group to commercialize the project. * PGSEP invited Antionio Co, SI owner to inspect SHS and examine the possibility of commercializing SHS. * PGSEP’s contract with the Philippine government disallowed PGSEP from commercializing the venture. * PGSEP Director offered Mr. Co the services of PGSEP staff if the latter will agree to making Burias community as the pilot phase. * In 1987 there were 3.3 million un-electrified households of which around 387,000 “un-electrified” households were living in Region V. * Mr. Co told his consultant that SHS is categorized as SI project and requested him to come up with recommendation Statement of the problem
* The company is considering whether or not to diversify its operations by venturing to assemble and market SHS units to un-electrified households of the country starting in Burias, Masbate wherein 120 customers are already on the waiting list. Objective
* SI should analyze well the viability of the SHS project to Burias community and its potential acceptance to other un-electrified rural areas in the country considering that SHS is an emerging product. SI should come up with a...
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