DYNAMIC PACKAGING COMPANY

A Case Study
Case Facts
Dynamic Packaging Company
D Y N A M I C PA C K A G I N G C O M PA N Y

A business engaged in food repacking

Packaged products
Has 3 major service lines
Contract products

Toll packing/manufacturing

Liquid portion packs

Has 4 major product types
Powder portion packs

Hot cups

Special products
D Y N A M I C PA C K A G I N G C O M PA N Y

Top managers of DPC are

also the Top managers of MSI

invested in
MARKETING SYSTEMS INC.

Market share
D Y N A M I C PA C K A G I N G C O M PA N Y

Aimed to be the number one firm in repacking business

To be recognized on its own brand

 DPC

GUIDE QUESTIONS
1. Describe the strategic planning
process in the company. Identify areas for
improvement in the process.

DPC’s strategic planning is continuously

improved. At the company’s start up, they haven’t
developed vision/mission and strategic plan of
which are very important to any business.

Adapts decentralized strategy in decision making

Failure to impose brand to repacked products for

brand recognition.
2. How would you evaluate the
prospects of DPC’s external
environment?

The company needed to play and hustle into these

external environment ;

a. Social
>Convenience. For DPC, they have set
their goal to deliver convenience to other
manufacturer through their through-put product
transaction.

>Product Differentiation. For DPC, they

have ventured to a modified range of product
since they offer four (4) major product lines that
enables them to play in the market and generate
income.
b. Technological
>Equipment. Through the years of their
service, the company must have develop
equipment for them to be able to keep “on trend”
and continue compete on the market industry.

c. Economic
>Raw Material Inflation. Economic
movement is a critical factor to see in running a
business. For the DPC, offering products that are
“economic-friendly” that does not compromise
safety.
d. Political
>Health and Sanitary Permits. there
should be a strict compliance to health and
sanitary permit to ensure that the products they
manufacture that’s being used in food-industry
does not harm any individual much more the
nature.

>Truck bans. Another factor that the

company must look into are the truck-ban-
scheduling so that their delivery schedule won’t be
interrupted.
 3. Evaluate DPC in terms of its strengths (core competencies) and
weakness.
STRENGTH
•The company has an employer that has the
knowledge of every little operation in the firm.
•DPC belongs to a high market share in the
industry.
•Conduct of strategic planning to know and align
their business direction is a good company
management practice.
•Involving the company employees to hear and see
their opinions is a good management practice.
•Their business venture on liquid packaging service
is a good income opportunity to delve into.
WEAKNESS
•Production based solely on customer orders, which
makes DPC vulnerable to customer performance.
•. DPC and MS have the same management
personnel.
•Weak in forward integration. There may be
possibilities that other company who practices
backward integration decide to expand its business
activities and take over.
•Utilizing of centralized decision-setting style. This
type of decision-making imposes single authoritarian
management that may not be beneficial for the
company at all times.
4. Does the company have the
capabilities to exploit such opportunities?

Yes. By capitalizing on their existing strengths

and expertise and try other packing services
that may bring them closer to their goal.

When taken the right effort and decision,

opportunities like retailing repacked items and
delving into liquid packing services is highly
feasible and may bring them into prosperity in
business.
5. What strategic options should DPC
take to be number one in the repacking
business?

Achieving their goal of becoming the country’s

number 1 packing company, they could;

•Diversify to expanding non-food items, as

they have thought about, such as shampoos
toothpaste, gel and other product.

•Consider retailing services by repacking

items and distribute these items with their
brand names.
 DPC

ANALYSIS
 XISTENT
E PROBLEMS

No written formal policies DPC clients opt to start DPC was not recognized
and systems procedure, repacking on their own for its own brand.
marketing, finance and products.
quality control.
 F F E C T S
E OF THE PROBLEMS

Not established written DPC client, like nestle, might By not making them
company policies may have found repacking costly known their brand, they
soon create problems on if they tap external supplier are limiting opportunities.
management. for it, making DPC client-
dependent.
Alternatives or Strategic Options
 Should be recognized for its own brand by retailing of repacked items
to carry their own brand name.
 Should be open to diversify its scope of repacking the products.
 Should focus more on the liquid repacking services since it has
higher margins and huge potential growth.
The company President should let production/operations head
manage directly on their department rather than interfering from every
operation.
There must be a set of internal control and business policies
established for an effective and efficient work process.
 PROS

Of Alternatives or Strategic Options

Letting operation head

Promotes work alone inflict
business confidence that he can to
Market control through carry its job perfectly.
varied offer
 CONS

Of Alternatives or Strategic Options

There will now be training

cost for the one who will
handle the operations.
There might be additional production cost.
RECOMMENDATION

1 set internal control and business

policies established for an effective and
efficient work process because it is an
operative way of setting strategies and
techniques in order to come up with a
better plan and a better ways to earn in
the growing company.
 Group 6

Augusto, Karen Joy L.

Gacosta, Jeriemae Daphne
Eballe, Emirito A.
Mondejar, Shanyll D.
Soque, Gesille Mae T.
Timog, Ryle

Thank you