Wednesday, July 16, 2008

Research one multinational corporation like Procter and Gamble, Unilever, IBM, Microsoft, Honda and etc. Identify and describe how their subsidiaries are managed and how technology has assisted them in their corporate and/or local operations. Further, identify one Philippine company that has gone worldwide (eg. Jollibee and BENCH) and describe their strategies. Evaluate the strategies of foreign companies with that of Philippine corporations. Indicate reference

http://investor.colgatepalmolive.com/colgateWorld/colgate_world-fin4.cfm?
http://www.itpc.hochiminhcity.gov.vn/en/business_news/business_day/2004/12/folder.2004-12-10.7775622024/news_item.2004-12-10.1628751991

One company that gone worldwide is the Lamoiyan Corporation, a local manufacturer of personal and homecare products is expanding its business in Southeast Asian region.

One of its strategy is investing to a
P100-million investment in plant capacity expansion, the company is looking at Vietnam as its first export market in order to compete huge corporations such a Colgate Palmolive. According to Mr. Cecilio K. Pedro the CEO of Lamoiyan Corporation they are expanding to other ASEAN markets.

The expansion program involved the acquisition of additional machinery that would double its Bicutan plant capacity to 8,000 metric tons from the existing 4,000 tons.

The company which makes toothpaste, feminine hygiene, laundry and dishwashing products, is aiming to become a transnational firm.

Also, the corporation targeted to be the Colgate of Asia by going bigger and bigger, and laying down the groundwork towards this goal.

The expansion of its capacity is coupled with the doubling of its workforce to 60 workers, 20 of which are hearing-impaired.

They also hired additional key executives including Ding Salvador, former regional president of Johnson and Johnson and Elmer Buntag, former Unilever research and development chief.

"Going big is the only way we can compete in the world market," said Mr. Pedro

Lamoiyan’s toothpaste brands of Hapee and Kutitap have cornered 10 to 15 percent of the market currently dominated by multinational companies.

Lamoiyan has evolved into a full-pledged toothpaste manufacturer with loyal market share from a former supplier of toothpaste tubes to Colgate and Close-up.

Pedro said the key factor to the company’s success in putting a dent in the local toothpaste market was the intentional low-pricing strategy of its products at 30 to 40 percent against the major brands.

Lamoiyan is expecting to grow by 12 percent this year from a 12 percent growth in 2003.

The company has expanded to other product lines such as personal feminine hygiene, Lacteena; dishwashing pastes and liquids, Dazz; fabric enhancer, Tenderly; and liquid laundry, detergent, Fash.

In terms of multinational company, one is the Colgate Palmolive, they managed their subsidiaries by horizontal information. The main office facilitated all the transactions in beginning. Then, planning afterward.



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