1.

EXECUTIVE SUMMARY

The world today is full of challenges and uncertainties. This is also true in

organizations. Organizations are located in such a challenging environment and

nowadays, no organization can achieve its goals without planning and having a

strategy. Starting a general manufacturing business is an excellent entrepreneurial

opportunity but it's important to plan out the business in detail before starting. The

growing intensity of competition due to the emergence of new competitors, formats, and

technologies, as well as shifts in customer needs is forcing retailers to devote more

attention to long-term strategic planning.

2. COMPANY DESCRIPTION

Aura Caeli Incorporation is a legal entity and one of the Asian’s leading air
conditioning manufacturer. Today, we are privilege to connect with a lot of consumers
with exceptional products and sold in over 50 countries.
Prior to the formation of a business, the company’s principal owners are
Elizabeth Cordero, Anne Camille Jacinto and Justin Fredrich Tobias, who holds equal
shares of ownership in the company. Aura Caeli Incorporation is a Latin word for
Gentle-Breeze Air and has its 15 manufacturing industries here in the Philippines. Our
business operates within the manufacturing industry and is classified under NAICS code
336612- industrial manufacturing. The main trade is formally located at Marikina City.
Subsequently in the early 1990’s, we’ve come a long way in realizing a better
environment and quality of life through providing air conditioning solutions. Our
company constantly build upon the history of proven innovation with new product that
improve global comfort and efficiency. As the company’s founders and owners, we have
combined 30 years of experience and have been aggressive in making competitively
priced unitary products. Our company produce bigger quantity signifies that we have a
negotiating power over the cost of materials and hence, better pricing in the market.
(need and demand in table)
Ever since the foundation of our corporation, we have been using the finest
quality materials supplied by our providers. With the blooming impact of technology
advancement, we were adapting on the trend to provide customer satisfaction. Aura
Caeli offers customer a variety of air conditioner devices. It is believed that the growing
use of air conditioners in homes and workplaces around the world will be the one of the
top drivers of global electricity over the next three decades and using air conditioners to
stay cool already accounts. However, as incomes and living standards improve in many
developing countries, the growth of AC demand sets to soar.
The growing intensity of competition due to the emergence of new competitors,
formats, and technologies, as well as shifts in customer needs is forcing retailers to
devote more attention to long-term strategic planning. For more than years, our
company generates significant positive earnings and cash flows gaining a competitive
advantage since we offer quality products. The efficiency is estimated to be up to 30%
more than the other type of devices offered by the competitor.
Our goal is to provide our customers with fast turnaround, exceptional quality and
competitive pricing for the upcoming years. We plan to position ourselves as a forward-
thinking company that continually invests in new ideas, expanding what we can provide
and gain advantage through technologies. Additionally, we plan to promote our
manufacturing industry with an aggressive, targeted marketing campaign. We will focus
heavily on establishing our presence within the industry at relevant trade shows.
Moreover, our company will continue to pursue sustainable growth and business
operations that consistently harmonize with the goals of improving indoor comfort.
There will be a broad expansion, and Aura Caeli Incorporation will be a leading
innovator, manufacturer and worldwide provider of advanced, high-quality air-
conditioning, and heating solutions for residential, commercial and industrial
applications. For the upcoming 30 years in global air conditioning industry, our company
will sold millions of system throughout 120 countries or more.

PRODUCTS AND SERVICES

(MARK UP CHUCHU, direct cost, labor cost)

PRODUCT DESCRIPTION
Aura Caeli Inc. has an extensive array of air conditioners that are ideal for all
circumstances no matter how complex the installation. One of our most popular units is
the Aura Caeli Eagle AC, available in black, white and silver. This units direct its airflow
away from people in the room to avoid cold drafts and correspondingly kills airborne
viruses. These are also designed at high-end residential installations or where
aesthetics are important to our customers. These units are extremely well built and
robust and will guarantee years of reliable use. In fact, we have installed hundreds of
these very attractive looking units across Singapore and other Asian countries. Despite
industry-leading design and reliability, Aura Caeli air conditioners are sold at an
exceptional price, and we pass these savings directly onto our customers.
The vast majority of our competitors are not taking full advantage of current
technology, neither implementing modern operational systems. But Aura Caeli treats it
as a definitive advantage, for this process will ensure our ability to deliver beyond
normal industry standard and surpass our customer’s expectation saving their time and
money.
On the other hand, SWOT Analysis is a proven management framework that
enables our industry to benchmark its business & performance as compared to the
competitors and industry. Our company highlights the strengths and weaknesses which
are the internal factors whereas opportunities and threats are the external factors.
STRENGTHS
 It leads in the manufacture of residential and commercial heating, ventilating, and
air conditioning systems and equipment.
 High level of ethics: Our company follows a strict code of ethics and the
guidelines for legal compliance look at various aspects like the safety of
products, fair competition and trading, protection of IP rights, the disclosure of
information and adherence to labor laws.
 Some of our certifications include OHSAS18001 for Quality Safety Management,
ISO 14001, ISO 9001, and AHRI for Quality and ASME U Stamp.
 It has presence, strong sales and distribution network in 50 countries.
 Energy-efficient, quiet, consistent comfort to millions for people at offices and
homes.
 Aura Caeli Incorporation employs 4600 employees and we provides home
solutions as well as building solutions.

WEAKNESSES

 Changing demographics of customer: The customers are ever changing

and their demand is also changing continuously. This is creating a huge
challenge for consumer durables business.
 Increased cost of raw materials: Aura Caeli Inc. sources its raw materials
from various parts of the world and this is increasing the costs of sourcing.
The costs of raw materials are highly fluctuating which is
creating pricing challenges.
 Poor presence in other consumer durables segments: Aura Caeli Inc. has
strong presence in air conditioners but unlike their competitors who have
the strong presence in other domains like smartphones, refrigerators which
gives them higher goodwill in comparison to Aura Caeli.

OPPORTUNITIES
 Investments in green building solutions for the future will help in new business
and reduce its carbon footprint.
 Strategic acquisitions like Environment market solutions Inc. will help strengthen
its portfolio.
 High growth opportunities not only in Asia, specially around the world.
 Strong outlook for the global control systems market especially in developing
countries.
THREATS

 The main competitors of Aura Caeli Inc. are Hitachi, Samsung, LG,
Whirlpool, IFB, Carrier, Panasonic and the like.
 New regulations are expected to come in place for controlling carbon dioxide
emissions.
 Changing inter-country relationships; a great threat for diversified operations
 Competitors engaged in creating market disruption technologies and products.
 Unpredictable trends: Most countries across the world are in a state of
financial turbulence. In addition to this, there is fluctuation in material costs
and the currency and exchange rate fluctuations the market is highly
dynamic.

By relying on our technology and an activity-based costing system, rather

than a time-based system, we will be able to retain competitive prices and
withstand high profitability. Our technology and systematic efficiencies will allow
us to gain advantages in cost, time and quality as well as design capability.

Product Life cycle

A Production Life Cycle depicts the various stages where businesses operate,
progress, prospect and collapse within an industry. This typically consists of four
phases — the introduction, the growth phase, the maturity, and decline.

The first phase is the introduction, it is where the concept development put into
action. Our company manufactures air conditioner based on specific design
specifications using precision machinery to form the desired product.
 Second one is the Growth phase, when our air conditioner product enters into a
period of higher sales and profit growth, our marketing plan often shifts to focus on
improvements to the design and any added features or benefits that can expand our
market share. For us, the key in order to improve our product availability is through
increasing the efficiency of distribution method, reaching more customers, and some
degree of price reductions, particularly for large-scale operations that can be introduced
to make the product more appealing for purchase. Maintaining the higher price set at
the introductory stage increases the risk of competitors entering the market due to the
wider profitability margin. Similarly, without stronger distribution efforts the product may
have limited availability, which encourages rival companies to encroach on market
share.
During maturity phase, competition tends to be lower at the beginning of the life-
cycle, but as competing companies start to offer lower prices, newer services, or more
appealing promotions to the initial product must be made more attractive. This often
results in comparable price drops or increased spending on advertising and promotions,
as well as greater investment in distribution and modifications to the existing product. As
per said, our competitors are not taking full advantage of current technology, nor
implementing modern operational systems. But Aura Caeli treats it as a definitive
advantage, for this process will ensure our ability to deliver beyond normal industry
standard and surpass our customer’s expectation saving their time and money.
Inevitably, the market for a product will start to shrink, and this is the decline
phase. This is where updating, improving and maintaining the product occurs. The
sales of most products will decline at some point, it may be due to factors such as
technological advances, trends, innovation or changing consumer tastes. Finding
solutions for declining sales, essentially comes down to knowing the market and
responding to it. We may be able to sell our product if it is not obsolete, but we will likely
need to offer alternatives to meet the difficult demands of a changing marketplace. In
this case our company will intend to provide alternatives by means of redesigning and
innovating the product.

Research and Development

As our company continue to grow, we plan to expand our facilities and branches.
At that point we will be able to control all operations in-house from initial design and
even mass production of the finish product. In addition, we will upgrade our products,
equipment and processes as needed and can be afforded. Aura Caeli Inc will continue
to research and pursue shares of existing markets and update portions of this
manufacturing industry accordingly. Not only are we are acknowledged as the leaders in
this field, but our dedication to outstanding quality and continued technical innovation
ensures that we remain the most trusted brands in the industry.
6. Organization and Management Team
Aura Caeli Incorporation understands the importance of a dedicated and
enthusiastic team to increase productivity and reduce turnover. Our company’s
management philosophy will encourage responsibility and mutual respect. Despite the
fact that our company present a strong decisive management team, we will also foster
an atmosphere of genuine employee appreciation and open communication.
Our company will be manages and run by our executive staff including Chief
Executive Officer Justin Fredrich Tobias, Chief Financial Officer Elizabeth Cordero, and
Chief Operations Officer Anne Camille Jacinto, as well as our Board of Directors. Our
management staff of directors and supervisors will oversee daily operations, on the
other hand the CEO, CFO and COO will be responsible for the majority of purchasing,
hiring, training, quality control and additional day-to-day duties. Additional key leaders
will include directors of finance, marketing and sales, human resources, information
technology and operations.

ORGANIZATIONAL CHART

COMPANY
OWNERS

FINANCIAL HUMAN IT AND

MARKETING
RESOURCE OPERATIONS
MANAGER DIRECTOR
MANAGER MANAGER

EMPLOYEE'S
ACCOUNTS TRAINING & SALES PRODUCTION
DEVELOPMENT

The management team combines founder vision with market expertise.

Justin Fredrich M. Tobias (Chief Executive Officer)

Justin Fredrich Tobias is Aura Caeli Inc. Chief Executive Officer (CEO) having a
40% of shares. He graduated Magna Cum Laude from Quinnipiac University and has
been in the financial and information technology business for over 35 years. His
expertise is in the Internet, Intranet and development of strategic business partnerships.

Elizabeth D. Cordero (Chief Financial Officer)

Elizabeth Cordero is a Chief Financial Officer, owning a share of 25 percent. She

graduated Cum Laude from University of the Philippines and has been in the financial
business for almost three decades. At Aura Caeli Inc., Mrs. Elizabeth Cordero was
instrumental in the development of the companies’ web based formulas that increased
productivity and customer-service.  Her strategic significant relationships allowed Aura
Caeli Inc. to develop end-to-end solutions for the exchange of data.

Anne Camille D. Jacinto (Chief Operations Officer)

Anne Camille D. Jacinto is a Chief Operations Officer, who has a 25% share in
Aura Caeli Incorporation. She holds a Bachelor of Science in Business Administration
and graduated Cum Laude from De LaSalle University. Mrs. Jacinto has a broad range
of experience in the technologies employed by Aura Caeli Inc. and has good
understanding of the company customer-base and their needs. She has proven herself
well capable of responsible for the operational management of the company in periodic
absence of the directors for more than 30 years.

MANAGEMENT TEAM

Mr. Franklin C. Portugal (Financial Manager)

Mr. Portugal is an experienced investment banker with a Bachelor’s degree in

Economics and MBA both from Far Eastern University. He has over 15 years industry
experience in banking and has attended various courses both locally and
internationally including the prestigious Stanford Graduate Business School. His
expertise as his main responsibility is producing financial report, directing investment
activities and developing strategies and plans for the long-term financial goals of their
organization.