Horizontal Construction in Bicol

MAKAPA CORPORATION

ENT740M

I. INTRODUCTION

In this case, we shall examine Makapa Corporation, a registered contractor of the Philippine Government for the Bicol Region. Makapa was established in 2001 and has continued its operations of building roads, highways, bridges, and other horizontal construction to this day. Having built a rather respectable name in the Bicol Region, Makapa now examines itself and what is next for them.

We shall examine Makapa Corporation’s financial capability, past performance, familiarity with the business, and how it may adapt itself to the current and future environment of the industry to determine the best course of action for the company to reach its next level of growth. Specifically, we shall examine whether Makapa is capable of servicing a different but very much-related industry: vertical construction, either through a) construction of its own hotel and commercial complex, or b) development of a residential community by building villas for sale in Bicol.

This research is being conducted for several reasons. The most obvious of which will be for the benefit of Makapa, who might have a clearer idea of what they should do next after seeing the research firsthand. Second, for academic purposes, this research aims to examine the difficulty in having one business transition from one industry to another. It aims to showcase challenges in expanding the business aspect by detailing the considerations for entering new industries.

II. PROFILE OF CURRENT STRATEGY

A. Concept of Business

Makapa sees itself as a provider of small scale construction of roads, bridges, and other horizontal construction under the supervision of the government in the Bicol region.

B. Concept of Competition

To compete in the region, Makapa has banked on a reputation built over a decade for work efficiency and on-time completion of projects. It is in this manner that Makapa is able to win bids for projects in the Bicol region....