De La Salle University

Taft Avenue, Manila

LY-RA Chemicals and Trading Company, Inc.

The Drivers of Corporate Entrepreneurship

Presented to the Faculty of the

Decision Sciences and Innovation Department RVR - College of Business

In partial fulfillment of the requirements in

CORPENT (Corporate Entrepreneurship)

Submitted by:

Aguilera, Pameila Ysabell B. Lorcha, Julia U.

Ching, Abbie Madeleine C. Moredo, Christ-Anne Angel V.

Labaguis, Rodrick Mykel Nolan D. Serrano, Raizen G.

Siclot, Lyniel Bernadette Dorothy L.

Submitted to:
Ms. Lily Ann Cuenco

3rd Term, AY 2023-2024

I. Introduction

A. Nature of Business

Figure 1. Company Logo

LY-RA Chemicals and Trading Corporation, Inc. has been operating

in the chemical industry for 40 years and currently focuses on offering

chemicals for cleaning essentials of different companies across industries,

including healthcare, pharmaceutics, paints, plastics, etc. LY-RA

Chemicals is a family business started by Mr. Ramon Aguila, Sr., and Mrs.

Lydia Aguila, established in 1979 and initially named Septagon. Currently,

LY-RA Chemicals is headed by Mr. Ramon Aguila Jr., a Chemical

Engineer and the youngest child of Mr. Ramon Aguila, Sr., and Mrs. Lydia

Aguila, with his family members as the other shareholders since the

changes occurred in 2011. The shareholders include Mr. Aguila's wife,

Mrs. Elizabeth Aguila, as well as their three daughters, namely Ms.

Katlenne Aguila, Ms. Hazel Aguila, and Ms. Ramonette Aguila.

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 The company as an importer, distributor, wholesaler and retailer

offers four (4) main products, such as (1) Sodium Hydroxide or Caustic

Soda Liquid, (2) Hydrochloric Acid or Muriatic Acid, (3) Sodium

Hypochlorite, and (4) Sulfuric Acid. Additionally, the business accepts

customized chemical percentage orders from clients. As a trading

company, the business delivers its products in different sizes, particularly

in drums, carboys, tote bins, and tankers. Moreover, the business

currently operates with its main office located at Paco, Manila, and its

warehouse in San Pedro, Laguna, where all its products are stored and

the primary operation is held.

B. Early Setbacks and its Solutions

Septagon, a small enterprise that resells medical laboratory

equipment and chemicals, was established in 1979. Mr. Gerardo Aguila,

the eldest son, came upon his father with the business concept after

working as a medical sales representative. Unfortunately, the company

encountered challenges in its early years, prompting it to rebrand. On

January 6, 1983, the company changed its name to LY-RA Chemicals and

began marketing chemical goods. Forty (40) years into the industry, the

company has a fair share of internal and external setbacks.

In 2011, the eldest daughter of LY-RA Chemicals' owner joined the

team. Ms. Katlenne Aguila is a De La Salle University alumna with a

Business Management undergraduate degree. She is well-versed in

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technology and wants the business to adapt to the new system to make

the process more efficient; however, the average age of the employees in

LY-RA Chemicals hinders the company from fully adapting to an

automated system. Currently, the internal process of the business

operates semi-automated with the help of free software while keeping

handwritten copies of their transactions on the side.

Aside from the company's problem with adapting technology, they

also faced some issues with delivering goods. The problems arise due to

the employees' unexcused absences that lead to delivery delays. Given

the situation, the solution made by the owner and the administrative

manager is to suspend the employees who fail to follow the rules set by

the management for 1-2 days after three (3) warnings.

As a business in its maturity stage, some setbacks prevent them

from growing. Despite these setbacks, the management is doing its best

to provide solutions that the company can do to prevent unfortunate

situations from happening.

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C. Current Status of Company

1. Organizational Structure

Figure 2. LY-RA Chemicals and Trading Company, Inc.

Organizational Structure

2. Production Facilities
Production facilities of LY-RA Chemicals are located in its

warehouse in Laguna. Raw materials and finished goods inventory

are placed in this warehouse. Mixing of chemicals based on the

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 client’s order is done in the warehouse by staff on duty for the day.

A first-in-first-out method is used in using inventory items such as

chemicals in the warehouse in order to prevent wasting inventory

items. Additionally, LY-RA Chemicals uses carboy drums, drums,

and tote bins in storing its chemicals.

3. Product Lines
LY-RA Chemicals and Trading Company, Inc. is a trusted

dealer of chemicals that has four (4) available products offered in

wholesale or retail for commercial use in various fields including the

healthcare sector, plastic and paint manufacturing, and other

industries. The chemicals offered for sale by the company are as

follows:

Table 1. Chemical Products of LY-RA Chemicals

Chemical Products

Hydrocholoric Acid (HCI) Caustic Soda or Sodium

Hydroxide (NaOH)

Sulfuric Acid (H2S04) Sodium & Calcium Hypochlorite

(NaCIO & Ca(ClO)₂ )

The said chemicals are available for purchase in different

sizes or capacities ranging from a tanker for bulk and large qualities

of orders, to a carboy for storing small capacities. Moreover, LY-RA

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 Chemicals also offers services such as water and wastewater

treatments, as well as chemical dilution for customers with various

preferences regarding chemical percentages.

4. Production Volume

LY-RA Chemicals produce approximately 100-200 carboys

daily as they cater to deliver these chemicals to Hizon Laboratory,

Emperador Distillers, Rom Electronics from Monday to Saturday,

every week. These chemicals are produced in the warehouse as

they are the only ones who are authorized to handle, produce, and

store the chemicals. During the pandemic, the chemical industry

has flourished which has also led their sales to increase as their

chemicals are being ordered for producing cleaning supplies or

products.

5. Technologies Used

LY-RA’s main technological infrastructure consists of various

pieces of equipment for communication and documentation (e.g.

landline telephones, printers, scanners, PLDT-driven Internet

server) along with a suite of Acer-branded Windows 10-capable

computers (mostly consisting of desktop all-in-one units) along with

their accompanying peripherals (case, keyboard, mouse, document

scanners, biometric scanners), predominantly used for the

Microsoft Office suite.

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 Data is stored and retrieved through the use of a Structured

Query Language (SQL) database, which contains documentation

regarding day-to-day operations (e.g. quotation, payment, purchase

orders, sales, supplier records, employee attendance, and payroll

records). This database is incompatible with data from Jotform and

Microsoft Office, which is used in the warehouse; this

incompatibility severely limits and reduces the efficiency of

documenting inventory tracking (which, subsequently, necessitates

hard/printed copies). Daily shipments are scheduled with a Time

Tree Calendar.

Telecommunication is done primarily through the Internet

with popular means (e.g. Facebook Messenger), but the

infrastructure is set in place to allow for conventional cellular call

and text methods. These systems are used for inter- and

intra-company communication, along with communication with

customers and clients.

6. Present Market & Business Partnerships and Alliances

Suppliers:

Universal Aquarius

Universal Aquarius is the leading supplier of water treatment

chemicals in the Philippines. The company specializes in the

production and distribution of Aluminum Sulfate and other

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chemicals. Universal Aquarius holds a significant market share in

this segment. As such, they also supply LY-RA chemicals for their

chemical products for them to distribute and sell.

International Chemicals

International Chemical Industries, Inc. was established in

1957 to meet the growing demand for basic chemicals in the rapidly

developing Philippine industrial sector. The company was initially

focused on manufacturing Caustic Soda, Sodium Hypochlorite, and

Ferric Chloride but eventually expanded their product offerings.

Inchem is also a well-established chemical supplier in the

Philippines. With that being said they also supply LY-RA chemicals

for their chemical products and allow them to offer a wide range of

of chemicals for them to distribute.

Customers

Hizon Laboratory

Hizon’s Laboratories, Inc. holds a significant place in the

history of Philippines’ pharmaceutical industry, as it was the

country’s very first pharmaceutical manufacturing company. It’s

quest for progress and advancements in pharmaceuticals led them

to becoming one of LY-RA Chemicals customers. By becoming a

customer of them will ensure that they have a constant supply of

readily available chemical materials that are critical for the

manufacturing of pharmaceutical products.

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 Emperador Distillers

One of LY-RA Chemicals customers is Emperador Distillers

Inc., it is a Philippine based company and one of the worlds’s

largest brandy manufacturers. It is a subsidiary of Alliance Global

Group, Inc. Chemicals are very much needed for the distilling

process of various alcoholic beverages with brandy being their

flagship product particularly the “Emperador” brand, which has

become a household name in the Philippines. The company’s focus

is to produce and distribute various alcoholic beverages.

ROHM Electronics

ROHM Electronics Philippines, Inc. was establish to serve as

a manufacturing facility for ROHM CO., Ltd. It was initially founded

in 1958 in Kyoto, Japan and has since been one of the world’s

leading semiconductor manufacturers. Chemicals play a huge role

in producing and manufacturing semiconductor devices due to their

ability to control and manipulate the properties of materials used in

the fabrication process. As such, they are also one of the

customers of LY-RA chemicals in order to produce their

semiconductor devices.

D. Problems Encountered and Problem-Solving Strategies

After conducting the interview with the Owner and Administrative

Manager of LY-RA Chemicals and evaluating their current situation, the

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following are the identified problems of the group that aims to innovatively

addressed:

1. Manual inventory

LY-RA Chemicals, as a trading company, heavily relies on

the inventory of their products, from the raw materials to the

work-in-progress and finished goods; however, the business still

currently operates with the manual and semi-automated inventory

system, which are identified to be subject to the rise of errors with

their records and hinders in a more efficient inventory process.

Wherein the inventory process of the business relied on the manual

counting of drums stored in the Warehouse to be recorded in a

Jotform and cross-checked in the Admin office through the

submitted inventory report in the Jortform. This problem must be

addressed, especially since the business continuously grows and

receives larger orders. Hence, efficiently tracking the business

supplies plays a critical role in its operation.

2. Lack of machineries for transferring of chemicals

The business also manually operates by transferring the

delivered chemicals from suppliers in the warehouse to the carboy

drums that would serve as an inventory of the business. However, one

of the identified issues with it is that filling up the drums is done with a

rough estimate that each carboy drum holds 5 kilos, as the business

uses no machinery or measurement equipment with such a particular

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 process, which places limitations on ensuring and identifying the

precise measurement of chemicals transferred.

3. Lack of professional manpower in the warehouse

As the warehouse holds the chemical products offered by the

business, it was also observed that the company operates with a lack

of professional workforce in the warehouse, in line with having a

background in dealing with chemicals aside from the owner himself.

The trained staff in the warehouse mainly transfer and mix chemicals

based on the standard or provided measurements, in which the

warehouse manager, who is assisted by the Account Executive based

in the Warehouse is tasked to oversee the operation in Laguna and is

given trust by the owner, provided his long-term service in the

company.

With all the identified problems of the group, the following are the

proposed problem-solving strategies:

1. Invest in Technology

Investing in technology would aid LY-RA Chemicals in

streamlining business processes, particularly minimizing the errors

in their inventory process, as well as achieving a more efficient

operation to meet demands continuously. With this, the business

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 may automate its inventory process by investing in software and a

database, allowing users in the warehouse and administrative office

to track inventories with ease and in real time. This can reduce or

even eliminate human error in the recording processes while

enhancing real-time cross-checking of raw materials, work in

progress, and final goods for the company. Hence, this can improve

decision-making in replenishing and delivering chemical supplies as

well as monitoring the inventory in line with the level of safety

stocks maintained by the company to guarantee to keep up with the

customers' demand on time.

Additionally, LY-RA Chemicals could invest in machinery that

would work on transferring chemicals for the business. Investing in

machinery increases productivity, provides accurate

measurements, improves efficiency, and minimizes waste while

cost-saving (Shaw, 2022). Nonetheless, leveraging the right

machinery for LY-RA Chemicals can optimize the operation of the

business, given the growing demand and inevitable changes in the

needs of the market and industry.

2. Strategically Find Staff

LY-RA Chemicals must also strategically find staff to carry

out the work in the warehouse, especially since the main products

of the business handle chemicals, which include complexity. With

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 this, hiring compatible employees who understand the intricacies of

the business, chemical handling, and regulatory compliance can

improve risk management and optimize internal processes and

workflows. Additionally, strategically employing individuals is crucial

to develop the expertise, knowledge, and skills necessary to

operate in the specialized industry as the company accepts

customized orders involving distinct computation and chemical

mixing.

II. Analysis
A. SWOT Analysis

Strengths

● Minimal Employee Turnover: LY-RA is able to operate in such a

way that they are able to maintain employees long-term, which

greatly reduces scouting, interviewing, and training time while also

ensuring that the quality of work remains consistent, as employees

(who mostly already have experience) are already familiar with the

intricacies and processes necessitated by the business.

● Customer Retention: The business is able to maintain a strong

following in its customers, due to the noted efforts of the human

resources/workforce of LY-RA. The high quality ensures that

customers would be satisfied by the consistently and expectedly

high quality of the products being offered, especially relative to

competitors from different industries offering similar products.

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Weaknesses

● Semi-Automation: LY-RA’s production processes are not

fully-automated, and while it does leave room for more human

discernment for verifying if the products are made correctly and,

subjectively (for marketing and other purposes), “with care,” it also

still leaves room for wasted potential or resources (e.g. production

time and finances) and also human error.

● Decentralized Organization: This business structure/system can

subjectively yield more positive results from each organization and

their employees, but ultimately results in a lack of efficiency and

consistency in communication and operations between each

organization: They may not be working in unison and/or are

sacrificing efficiency and efficacy in the process.

● Lack of Software Database Security: Software database tools

used by the company are not of the highest quality and are

incredibly susceptible to data losses or theft, either from third

parties or from the company’s own hardware and software.

● Lack of Online Presence: The company is not adequately utilizing

platforms on the Internet to maintain or generate customer

relations, which severely hinders their potential for reaching more

markets and can make their business model more fallible given

their dependence on long-time customers (i.e. if the customer

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 leaves, then there is no fallback for the losses that may be

incurred).

Opportunities

● Growing Inter-Industry Demand: As chemical requirements from

other industries increase (e.g. for the pharmaceutics and healthcare

industries), LY-RA will have more of a niche to fill and will be able to

garner new clients.

● Technological Innovations: Many continuous developments in the

field of technology, if applied and adopted by LY-RA, will greatly aid

in many facets of the business (e.g. production, database

documentation, marketing, communication, etc.).

Threats

● Government Regulations: LY-RA, like many of its competitor

businesses, are subject to international mandates and regulations

set by the government which are to be complied with (e.g.

operation, usage, and waste disposal permits). Should major

changes be implemented, there is the risk of LY-RA (and its

adjacent businesses) and its business model being compromised.

● Inflation Rate: As with government mandates, LY-RA is at the

mercy of internationally-followed inflation rates, which are currently

at 8.6% as of February 2023. The risk for LY-RA increases,

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 considering their already niche market and the operations costs

entailed by the business in and of itself.

● Competitors: As demand for chemical and trading companies

continues, LY-RA also has to consider their reach relative to

competing businesses, which may have the edge over them in

terms of marketing, communication, production speed, etc.

B. CECI Questionnaire Result and Analysis

1. Respondent’s Brief Profile

The respondent chosen to answer the Corporate

Entrepreneurship Climate Index is Mrs. Emelina V. Moredo, the

Administrative Manager of LY-RA Chemicals and Trading Company,

Inc. She has been working with the company since February 1992.

Mrs. Moredo started as the company's secretary; she was in charge

of handling calls, fixing the company's schedule, and encoding

sales. As mentioned, she currently works as an Administration

Manager and oversees the company's administration system and

clerical work. Moreover, as one of the company's longest

employees, the Managing Director trusts her with the company.

2. Management Support for Corporate Entrepreneurship

The first part of the questionnaire looks into how the

management supports corporate entrepreneurship inside the

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 company. Based on the questionnaire results, there is a lack of

management support in terms of innovative ideas. As mentioned,

LY-RA Chemicals and Trading Company, Inc. has been operating

for forty (40) years. In addition, the average age of the employees

is mid-forties; thus, there are no employees who try to develop new

ideas to improve the company's system. As an employee for

thirty-one (31) years, Mrs. Moredo mentioned that only Ms.

Katlenne Aguila tried to introduce an innovation in the company.

Given this, Mrs. Moredo mostly answered "not sure" in the first

section.

3. Work Discretion

The second segment talks about the work discretion inside

the company. The results from the questionnaire show that Mrs.

Moredo mostly answers "disagree." As an employee working

directly under the Managing Director, Mrs. Moredo is expected to

report all the potential decisions and the company's situation.

Although the Managing Director trusts her, the final decision is still

with Mr. Aguila, the Managing Director. Given this, the company

gives its employees little to moderate work discretion.

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4. Rewards/Reinforcement

The next segment looks into the rewards and reinforcement

inside the company. As an Administration Management, Mrs.

Moredo knows that the company is generous with rewards. This is

because the company values the hard work of its employees.

However, Mrs. Moredo is unsure of the rewards to be given if there

are innovative projects inside the company.

5. Time Availability

As for the time availability in terms of workload, Mrs. Moredo

gives various answers depending on the question. If the questions

align with innovative projects, the respondent answers that she is

not sure about the question answering the question since the

answer is not definite. Moreover, if the question is about the amount

of time given to the employees with their workload, Mrs. Moredo

answered that they have sufficient time to do their job. In addition,

the respondent doesn't agree with having time constraints in doing

their work.

6. Organizational Boundaries

As an employee for over three (3) decades, Mrs. Moredo is

already familiar with the rules and guidelines for doing their job.

Although she mentioned that there are no written rules for doing her

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 job, she was trained by the owner on how to do the job correctly.

Through the years of working with LY-RA Chemicals, she has

successfully picked up the work ethic inside the company.

7. Specific Climate

In the specific climate sector, the respondent's answers are

different depending on the climate. Most of Mrs. Moredo's answers

are "not sure" regarding the rewards and flexibility given to

employees who work on innovative ideas. On the other hand, the

respondent agrees with the question that the company is more

concerned with the process than performance. Additionally, she

agrees with the company being highly flexible, given that the

organization is decentralized.

C. PESTLE Analysis

1. Political

a. Trade Policies

LY-RA Chemicals and Trading Company imports their

chemicals and serves as a medium for businesses to

acquire quality chemicals for use in their respective

industries. As such, trade policies established by the

government can have a significant impact on the business

as this may affect operations due to logistical delays.

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 Moreover, the business has to comply with tariffs imposed on

materials and products imported.

2. Economic

a. Skill level of Workforce

The Philippines currently has 48.58 million individuals

employed as of March 2023 (Dela Cruz, 2023). In spite of

this development in the country, LY-RA Chemicals and

Trading Company must evaluate current and future

employee skills and capabilities as their business deals with

corrosive and flammable products before they consider

hiring. They must ensure that their workforce has sufficient

skills and knowledge in handling such products.

b. Inflation rates

The inflation rate from January 2023 to July 2023 has

averaged at 6.8% (Philippine Statistics Authority, 2023). With

this, the products imported by LY-RA Chemicals and Trading

Inc. may not frequently encounter price increases in the

Philippine Market, but may be more dependent on the

inflation rate from different countries. However, other

resources for operations such as gasoline, oil, containers,

and the likes may be more susceptible to change depending

prices settled in the Philippine Market.

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3. Social

a. Demographics

Different companies cater to various customer

segments in the population. Given this, those who are in

need of chemicals for residential or commercial use and

have been familiar with LY-RA Chemical and Trading Inc.

may be more inclined to purchase from the business. On the

other hand, those in the younger generation may not

necessarily purchase as it does not align wit their interest or

needs.

b. Product Customization

Product customization has been made available by

businesses in order to cater to the growing demands of

customers in the market. As such, LY-RA Chemical and

Trading Inc. have made this option available, particularly

chemical dilution, in order to meet the needs of customers

who have various needs and preferences on chemical

percentages.

4. Technological

a. Automation and Digitalization

In their day-to-day operations, the employees of

LY-RA Chemical and Trading Inc. have numerous

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 opportunities for contact with the chemicals in order to

measure, transport, or sell it to their clients. Employees are

prone to accidents due to contact with flammable and

corrosive chemicals that can have adverse effects to their

health despite following safety protocols. With this being

said, LY-RA Chemical and Trading Inc. can consider

investing in automation and digitalization in order to not only

make their workplace a safer environment, but also to

increase efficiency in their operations. With the help of

automation, employees can expedite certain processes and

save time and effort to be allotted to different aspects of the

business.

5. Legal

a. Health and Safety Laws

Companies such as LY-RA Chemical and Trading

Company are subject to following health and safety laws in

regard to handling, storing, transporting, and disposing of

chemicals. The company must strictly follow such laws and

rules imposed for the safety of their employees as well as

their environment.

b. Licenses and Permits

Licenses and permits are needed by businesses in

order to operate, However for some, there are additional

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 paperwork required depending on their chosen industry of

operation. LY-RA Chemicals and Trading Company are

required to have such licenses and permits to operate their

chemical dealership, and ensure that such are up to date in

order to avoid legal fines.

6. Environmental

a. Waste management

As a company operating in the chemical industry and

handling corrosive and flammable products, LY-RA

Chemicals and Trading Company must adhere not only to

regulations on safety, but also fulfill their social responsibility

to the environment. The company must ensure that they

have a waste management system, particularly in disposing

of hazardous waste from their products.

b. Reducing Carbon Emissions

The chemical industry is one of the significant

contributors to direct carbon emissions (IEA, n.d.). LY-RA

Chemical and Trading Company also contribute to this in

their day-to-day operations from diluting chemicals to

transferring them via logistics. The company must be mindful

of the negative effects of such, and look for ways to reduce

their carbon emissions to positively contribute to the

environment.

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D. Porter’s Five Forces

1. Threat of New Entry

○ High entry barriers due to specialized knowledge needed in

entering the market. Government regulations and capital

requirements may also prevent new players from entering

the market.

○ Low, established chemical and trading companies in the

Philippines are already present in the market.

2. Bargaining Power of Buyers

○ Moderate, LY-RA Chemicals has high customer retention as

they are able to provide high-quality products and services.

○ Other suppliers in the market can give buyers bargaining

power as buyers can switch to a different supplier if they

offer cheaper or better products.

3. Bargaining Power of Suppliers

○ Moderate, LY-RA Chemicals sources some of its chemicals

abroad and chemical regulations must be complied with.

○ Bargaining power of LY-RA Chemicals may decrease due to

the company being dependent on key suppliers.

○ Shortages in key raw materials may be taken advantage of

by suppliers and increase prices.

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 4. Threat of Substitution

○ Low, LY-RA Chemicals is able to provide the necessary

chemicals needed by its clients.

○ Substitute products or technology can threaten LY-RA

Chemicals’ profitability and market position.

5. Rivalry Among Existing Competitors

○ High, Companies want to work with other suppliers in order

to gain more revenue.

○ Large number of competitors in the industry can affect LY-RA

Chemicals’ pricing and profitability in the long run.

○ Product differentiation, competitive pricing, and focus on

specific market niches are done by other companies to gain

a competitive edge.

III. Proposed Solution

Given that LY-RA Chemicals are experiencing many difficulties within the

organization, the group has decided to focus on the company’s problem with

adapting to technology, Specifically to make their semi-automated system into a

fully automated system. In proposing to make the system fully automated, the

company shall acquire an Enterprise Resource Planning system or also known

as ERP. This is an integrated software system which would help the company

centralize their system. Along with this proposed solution is to focus on training

the employees on how to use the system as it was mentioned that the employees

are one of the major hindrances in improving business processes through

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technology. In line with the group’s suggestion of using an automated system,

specifically an Enterprise Resource Planning (ERP) system, the advantages are

as follows:

Reduced Human Errors

Automated Systems are less prone to errors as compared to

humans because of the exact reason that they do not have emotions that

would tend them to make mistakes. As for humans, they get tired,

distracted, can lack knowledge and other more factors that can cause

errors.

Increased Efficiency

Using an automated system can lead to several improvements that

would help increase productivity and efficiency such as; reducing manual

efforts of gathering and processing information, minimizing errors that

would take time to be corrected, consistency in creating data for data

analysis, real-time monitoring which would allow early detection of

problems, and saving time of employees which allows them to focus on

more important tasks.

Faster Response Time

Since Automated Systems use real-time data across all

departments, This allows them to track and gather all information that the

company would be needing. An exact example of this would be gathering

information for a progress check on operations and sales, employees

could easily track their inventory of raw materials and finished products,

26
 finished goods sold, and other more important information. They do not

have to manually get reports from each department to conclude for the

progress report.

Remote Management

Using technology to create business advantages has increasingly

been evident during the pandemic as technology helps you to access

things faster. Using an Automated System will help you access information

and data from your company faster and easier at a single place. You do

not have to visit each department to manage their jobs as you can see

their progress through real-time data that will reflect on the system.

IV. Action Recommendations

To address the challenges faced by LY-RA Chemicals and improve their

technological capabilities, the researchers recommend the company to focus on

transitioning their semi-automated system to a fully automated one. This can be

achieved by acquiring an Enterprise Resource Planning (ERP) system, which will

serve as an integrated software solution that will centralize the company’s

operations. A critical component of the recommendation is by giving importance

to employee training on the effective usage of the ERP, system. As identified in

the paper, employees have been recognized as a significant barrier to fully

embracing technology’s potential. By offering comprehensive training tailored to

to individual roles, the company can ensure a seamless transition and maximize

the benefits of the automated system.

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 The implementation of an automated ERP system presents numerous

advantages that will drive efficiency and improve productivity within the

organization. One primary benefit is the reduction in human errors. By minimizing

human involvement in repetitive tasks and data processing, the company can

significantly decrease the risk of errors in its operations. Moreover, adopting an

automated system will lead to increased efficiency. Manual efforts involved in

gathering and processing information will be reduced, streamlining data analysis

and decision-making processes. The system's real-time monitoring capabilities

will facilitate early problem detection, allowing prompt action to resolve issues.

This will not only save time but also enable employees to concentrate on more

critical tasks that demand human expertise and creativity.

Additionally, the ERP system's ability to utilize real-time data across all

departments will enable the company to seamlessly track and gather relevant

information. Progress checks on operations and sales, inventory tracking of raw

materials and finished products, and other essential information can be accessed

and analyzed effortlessly. Eliminating the need for manual reports from each

department will expedite progress reporting and enhance overall data accuracy.

By implementing these proposed action recommendations, LY-RA Chemicals can

overcome its technological challenges and position itself for growth and success.

Embracing a fully automated system, complemented by employee training and

effective utilization of real-time data, will enable the company to achieve

increased efficiency, reduced errors, faster response times, and effective remote

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 management which will ultimately bolster its competitive advantage in the

market.

V. References

Dela Cruz, E. (2023, May 9). PH Employment Rate Records 95.3% rise in March.

PIA.

https://pia.gov.ph/news/2023/05/09/ph-employment-rate-records-953-rise-i

n-march#:~:text=QUEZON%20CITY%20(PIA)%20%2D%2D%20The,the

%20same%20period%20last%20year

Philippine Statistics Authority. (2023, August 4). Consumer price index and

inflation rate: Philippine Statistics Authority: Republic of the Philippines.

Consumer Price Index and Inflation Rate | Philippine Statistics Authority |

Republic of the Philippines. https://psa.gov.ph/price-indices/cpi-ir

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VI. Appendices
Appendix A. CECI Questionnaire Results

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Appendix B: Respondent Company ID

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