UNIVESITY OF THE EAST CALOOCAN

CALOOCAN

CASE STUDY

SUBMITTED BY:
JENYZA B. DIMACALI
BMG114 / BSACT3H

SUBMITTED TO:
PROF. ROSALINDA LACERONA
 Philippines, 1985

First Philippine Holdings Corporation (FPH) is a management and invested

company whose major business is power generation and distribution, with strategic
initiatives in manufacturing and property development. In its 50 years, it has pioneered
and managed some of the country's best companies, who are market leaders in their key
industries.it is a member of the Lopez Group of Companies.

Its power generation subsidiary, First Gen Corporation (First Gen), is a renewable
energy producer, with power plants that use geothermal, hydro, and natural gas for fuel.
FPH's manufacturing subsidiary,

First Philippine Electric Corporation (First Philec), operates the country's first large-
scale silicon wafer-slicing facility called First Philec Solar Corporation (FPSC), which
supplies some of the world's leading photovoltaic companies. FPSC is a joint venture of
First Philec and SunPower Corporation, an established global technology leader in the
solar industry.

VISION
Uplifting lives by creating value in key industries and infrastructure that advance
national development.

MISSION
We will leverage our distinct competencies and experience from energy,
infrastructure, real estate, and industry to drive innovative business strategies and
solutions that meet the needs of our customers.

VALUES
- A PIONEERING ENTREPRENEURIAL SPIRIT
We choose to build businesses that are catalysts for
national development.
- BUSINESS EXCELLENCE
We conduct our business along a very high bar and hold ourselves accountable
for excellence.
- UNITY
We work best when our people and our various businesses collaborate and help
each other and constantly build a culture that encourages this.
- NATIONALISM
We recognize our roots as a Filipino company and take pride in using our
businesses to enable the best attributes of our country to shine through.
- SOCIAL JUSTICE
 We use our strengths and capabilities to make our country and the world a better
place. We cannot operate oblivious to the many social and economic problems that
surround us.
- INTEGRITY
We ensure that our actions build trust and are clearly anchored to our principles,
our true north.
- EMPLOYEE WELFARE AND WELLNESS

We strive to improve the lives and welfare of our employees and their families
because they, in turn, devote a significant part of their lives in service to our company.

I. OBJECTIVES
 To know how to adopt to the unstable political and economic
environment.
 To determine how to develop new business thrust into engineering-
related services in the overseas market.
 To determine how to recover the losses and eliminate debts from the
business’ poor performance in 1984.

II. CENTRAL PROBLEM

How to recover the losses and eliminate the corporate debts from the
poor performance of the business in 1984?

III. AREAS OF CONSIDERATION ( SWOT ANALYSIS )

1. STRENGTH
 High Profitability and Revenue
 High Growth Rate
 Strong Management
 Effective Advertising

2. WEAKNESSES
 Government decisions or public perception has impact on the business.
 High inflation rates
 Highly unstable political and economic environment

3. OPPORTUNITIES
 Income level is constantly increasing
 Entering new markets
 Use of new and improved technology

4. THREATHS
 Natural disasters
 More competitors
 Government regulations
IV. ALTERNATIVE COURSE OF ACTION

1. Enter into new markets.

Trying other kinds of business other than power generation and distribution.

Advantages:
 They have other business to get their income from and can use it to pay
their debts.
Disadvantage:
 These is very risky.
 These will cost them more.

2. Invest in other companies.

Advantages:
 This will help them secure their financial stability if there are changes in
the government decisions and economic environment.
Disadvantage:
 This will not help in the faster elimination of corporate debts.

3. Develop a debt management program and new business thrust.

New business thrust seeks to refocus group efforts away from a diversified,
domestic orientation toward concentration in engineering services primarily for
overseas market.

Advantages:
 This will help them manage their debts and construct a process on how
they will eliminate the debt faster.
 Focusing on one particular field will help them polish their flow of
business.
 Overseas market are not as risky as the unstable economic environment
in the country.
Disadvantages:
 These involves a lot of process.
 These will also cost them more.

V. STRATEGY FORMULATION / RECOMMENDATION

I therefore conclude that the best solution to the problem is alternative

course of action no. 3, because even though it will cost them more, it surely
guarantee the elimination of corporate debts. The debt management
program will manage the debt and the new business thrust will help pay the
debts.

VI. PLAN OF ACTION

 1. Appoint capable employees for the program
2. Conduct researches and studies about overseas market.
3. Hire a specialist to help in the debt management.

VII. POTENTIAL PROBLEMS

1. What if there are only few employees that are capable for the task?
2. What if there are no budget to supply the researches and studies?
3. What if they cannot find any specialist?

VIII. CONTINGENCY PLANS

1. Hire new employees that have expertise on that matter.

2. Convince the board and creditors that the corporation is need of more
money.
3. Look for an expert in other companies that are member of Lopez Group of
Companies.