DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY

Strategic Management for EMEMC Machinery

A Strategic Management Paper

Presented to the Faculty of the
Graduate School
Masters in Business Administration
Don Honorio Ventura Technological State University
Bacolor, Pampanga

Submitted by:
Analyne Moog Jingco
Esther Rose Basingel
Florante Dungo

Submitted to:
Dr. Joan C. Reyes
April 2, 2017
3. BUSINESS PROFILE
3.1 Background

Company Name : EMEMC MACHINERY

Formerly LMR MACHINERY

Office Plant : Señorita St., Brgy. Saguin, City of San Fernando,

Pampanga

E-Mail Add : lmr_machinery@yahoo.com.ph

ememcmachinery@yahoo.com.ph

Date Established : May 15, 2003

TIN Number : 252-976-092-000

Type pf Business : Manufacturing, Fabricator,

Contractor, Services

Telephone Numbers : (045)-286-1972/ (045)455-5114

Mobile Numbers : 0917-552-7507/ 0977-813-7063

HISTORY:

Elmer Salisi, the owner was once a employee at Elgie Packaging Equipment

for more than 15 years. He decided to resign and put up a small machine shop
 that was established in year 2003. He used his talents and skills in rendering in

kind of business. The capital used came from his separation pay amounting to P

150,000.00. The first customer was Silver Swan. Rehabilitation of a existing

bottling line and repairing of machine parts and services. Duer to his hardwork

and perseverance he gain the trust of his clients. He was able to build one unit of

Rotary Stand Up Pouch, that was the start of the success of the first project. Until

oither clients have known him. Projects keep on coming due to same quality of

the competitorsd of much affordable price. More than 370 manufactured

packaging machine have been served to different client. We started as Machine

Shop for only three (3) employees. Now we are about 20 employees. We’ve

been in this business industry for almost thirteen years. Last 2012-2013 we are

awarded as one of the Top Quality Excellence of Local Manufacturers of

Packaging Machines in the Philippines.

After a decade of hard work and perseverance. LMR Machinery changed

name to EMEMC Machinery and location from Caloocan City to City of San

Fernmando, Pampanga.

3.2 Vision and Mission

3.2.1 Vision
 “By the year 2022, to be the top and most innovative leader and manufacturer of

high-quality and customized packaging machineries”

3.2.2 Review of Current Vision

Table 1
Vision Analysis

Criteria Yes/No Evaluation

Focused Concept Yes “By the year 2022, to be the

top and most innovative

leader and manufacturer of

high-quality and customized

packaging machineries”

Plausible Chance of Yes

Success
…to be the top and most

innovative leader

Sense of Noble Purpose Yes …most innovative leader

and manufacturer of high-

quality and customized

packaging machineries

3 .2.3 Mission
 “Providing excellent service to our clients by guaranteeing high-quality

products and committed after-sales service”

3. 2.4 Review of Current Mission

Table 2
Mission Analysis

Criteria Yes/No Evaluation

Customers Yes Providing excellent service

to our clients

Products/Services Yes guaranteeing high-quality

products and committed

after-sales service

Markets No No specific market

indicated

Technology Yes high-quality products

Survival, Growth, and Yes committed after-sales

Profitability
service
Philosophy No Philosophy is not

mentioned in the mission

statement

Self-Concept (distinctive Yes Providing excellent service

competence)

Public Image No None yet

Employees No Employees are not

mentioned in the missioned

statement

Our proposed mission for the company is:

“EMEMC Machinery aims to provide safe, effective, innovative and cost-

efficient solutions to address customers’ individual needs. Working and

unleashing the talents of our empowered teams by teaching them to be honest in

all ways. In addition, To possess a high standard moral values in serving the

community by way of creating unique equipments that answer your need for

increased productivity and committed after-sales service”

4. ENVIRONMENTAL SCANNING

4.1 Internal Environment

4.1.1 Management/Organization

The company has a simple and informal organization

structure as it runs by a Sole Proprietor. Figure 1 shows the

Organizational Structure of EMEMC Machinery Corporation.

Mr. Elmer O. Salisi

GENERAL MANAGER

Mr.Rogelio O. Salisi
Ms. Cristy S.Navarro PRODUCTION
HR/ACCOUNTING DEPARTMENT
SENIOR SUPERVISOR

ACCOUNTING
BOOKKEEPER TEAM LEADER TEAM LEADER TEAM LEADER
STAFF

PRODUCTIO PRODUCTIO PRODUCTIO PRODUCTIO PRODUCTIO PRODUCTIO PRODUCTIO PRODUCTIO PRODUCTIO

N WORKER N WORKER N WORKER N WORKER N WORKER N WORKER N WORKER N WORKER N WORKER

Figure 1: Organizational Structure

All actions and decisions are to be approved by the General Manager (GM). A

GM duty includes developing strategic plan by studying technological and financial

opportunities, presenting assumptions, recommending objectives. Since it is a family

business the GM assigned HR/ Accounting Head, in charge of accomplishing

accounting human resource objectives by recruiting, selecting, orienting, training,

assigning, scheduling, coaching, counseling, and disciplining employees;

communicating job expectations, planning, monitoring, appraising, and reviewing job

contributions, planning and reviewing compensation actions, enforcing policies and

procedures through the help of the Accounting Staff and Bookkeeper. In completeness,

a Production Supervisor assigned a team leader for every shift for a faster and

convenient production. Each department head are directly reporting to the General

Manager on a monthly basis or as the need arises, to discuss problems encountered as

well as the accomplishment for the month.

4.1.2 Marketing Aspect

4.1.2.1 Target Market

EMEMC Machinery Corporation target market are

all manufacturing companies around Central Luzon.

a. Food and Beverage Manufacturing Industry such as

Universal Robina Corporation, B-Mirk Enterprises

Corporation, Coca-Cola Company and other related food

company around the target area.

b. Agricultural Products Industry

c. LPG Refilling and Distribution Business

4.1.2.2 Products/ Services

1. Bottle Unscramble

a. Multi-Lane Unscramble Conveyor

b. Rotary Table Unscramble

c. Automatic Rotary Unscramble

2. Capping Machine

a. Aluminum Cap Sealing Machine

b. Rotary Screw Capping Machine

c. In Line Snap on Capping Machine

3. Case Packer

a. Automatic Drop Type Case Packer

b. Automatic Pick and Place Case Packer

c. Wrap Around Case Packer

4. Filling Machine

a. In Line Filling Machine

b. Rotary Filling Machine

c. Rotary Stand Up Pouch Blow/Fill/Seal Machine

d. Piston Filling Machine

e. In Line Stand Up Pouch Blow/Fill/Seal Machine

 5. Labelling Machine

a. In Line labeling Machine (Spot/Wrap Around)

6. Rinsing Machine

a. In Line Rinsing Machine

b. Bottle Twist Rinsing Machine

c. Rotary Rinsing Machine

OTHER PRODUCTS AND SERVICES

a. Shrink Tunnel

b. Conveyors

c. Carton Erector

d. Cap Elevator

e. Grinding Machine

f. Mixing Tank

g. Heat Exchanger (Shell and Tube)

h. Repairing, Rebuilding and Maintenance of

Machineries, Equipment, Sales and Parts

i. Engineering Design and Consultation

4.1.2.3 Prices
 4.1.2.4 Place

EMEMC Machinery Corporation is located at Señorita Street,

Barangay Saguin, City of San Fernando, Pampanga. It is beside

Belissima Subdivision. Figure 2 illustrates the exact location of said

above company.

EMEMC

4.1.2.5 Promotion

Promotional activities and advertising are through word of

mouth and posting of tarpaulins. The company also distributes

 brochures with complete specification of their products. In addition,

EMEMC offers long term warranty on equipments purchased by

their clients.

4.1.3 Financial Aspect

Table 3 presents the Income Statement and Balance Sheet for EMEMC

Machineries for the 2nd & 3rd Quarter of 2016.

2016 2017
3rd 4th 1st 2nd
Quarter Quarter Quarter Quarter
Figures in '000s

Net Sales 13,000.00 13,450.00 14,890.00 15,550.00

COGS (4,530.00) (4,850.00) (5,100.00) (5,250.00)

Gross Profit 17,530.00 18,300.00 19,990.00 20,800.00

Total Expenses (1,250.00) (1,250.00) (1,250.00) (1,250.00)

Net Income 18,780.00 19,550.00 21,240.00 22,050.00

Table 4 illustrates projected Income Statement and Balance Sheet for the 2nd

and 3rd Quarter of 2017

2016 2017
3rd 4th 1st 2nd
Quarter Quarter Quarter Quarter
Figures in '000s
Cash 1,550.00 1,580.00 1,680.00 2,550.00

AR 3,550.00 4,780.00 5,500.00 6,890.00

Inventories 5,100.00 5,150.00 6,130.00 6,140.00

Net Fixed Assets 1,400.00 1,450.00 1,450.00 1,700.00

Total Current Assets 11,600.00 12,960.00 14,760.00 17,280.00

Total Non-Current Assets 5,500.00 5,800.00 5,800.00 9,120.00

Total Assets 17,100.00 18,760.00 20,560.00 26,400.00

Total Current Liabilities 4,250.00 4,450.00 5,680.00 5,350.00

Total Non-Current Liabilities 7,550.00 7,550.00 6,800.00 6,450.00

Share Capital 5,300.00 6,760.00 8,080.00 14,600.00

Total Liabilities and
Shareholders’ Equity 17,100.00 18,760.00 20,560.00 26,400.00

Financial Ratios

Table 5 shows solvency, liquidity, profitability and leverage ratios.

3rd 4th 1st 2nd

Quarter Quarter Quarter Quarter Significance
Current Ratio: 2.73 2.91 2.60 3.23 Ratio used to evaluate shot-
Total Current term solvency and liquidity.
Asset/Total Primary test of solvency to
Current meet current obligations from
Liabilities current assets. In general,
higher liquidity means higher
capacity to pay off its
obligation

Inventory -0.89 -0.94 -0.83 -0.86 Measures efficiency of the firm

Turnover: in managing and selling
COGS/Inventory inventories
Asset Turnover: 0.76 0.72 0.72 0.59 Measure efficiency of the firm
Net Sales/Ave in managing all assets
Total Assets
Debt Ratio: Total 1.45 1.56 1.65 2.24 Shows proportion of all assets
Asset/Total that are financed with debt
Liabilities
Equity Ratio: 0.31 0.36 0.39 0.55 Indicates proportion of assets
Total provided by owners. Reflects
Equity/Total financial strength and caution
Asset to creditors

Gross Profit 1.35 1.36 1.34 1.34 Measures profit generated

Margin: Gross after consideration of cost of
Profit/ Net Sales product sold

Rate of Return 3.54 2.89 2.63 1.51 Measures rate of return on

on Equity: Net resources provided by owners
Income/Ordinary
Equity

4.1.4 Technical /Production

 4.1.5

4.2 EXTERNAL ENVIRONMENT

4.2.1 Economic Forces

The manufacturing industry accounts for a significant share of the

industrial sector in developed countries. The final products can either serve as a

finished good for sale to customers or as intermediate goods used in the production

process. Manufacturing industries are the chief wealth producing sectors of an

economy. These industries use various technologies and methods widely known as

manufacturing process management.

4.2 Socio-Cultural Forces