The Globe Construction Company

University of the Philippines Los Baños

College Laguna

AY 2013-2014

MGT 201

Case Analysis # 5:

THE GLOBE CONSTRUCTION

COMPANY

Submitted by: Submitted to:

Group 6

Edra, Mark Raymond V. Prof. Jimmy Williams

Malabanan, John Benvers A.

Sayseng, Kristel H.

THE GLOBE CONSTRUCTION COMPANY

I. Point of View:

Based on the case, we choose the point of view of the Top Management of Globe Construction Company because they have the capacity to implement the decision and they already know the problem which was brought up during the management workshop.

II. Statement of the Problem:

After analysing the case, the group came up with the same observed problem which involves coordination between the Purchasing and Project departments, and other departments concerned. Therefore, the main problem for the case is stated as:

“How will the Top Management develop the coordination between the departments?”

III. Case Facts (SWOT Analysis)

Strengths

* The company was established in the mid-50s and grew at a very fast rate due to the construction boom at that time.

* Most of its projects, beforehand, were for the government that is why the company enjoyed high margins because the competition was not a problem. Moreover, during the time of President Marcos, corruption was very high that’s why every government projects speculated to be overpriced and was at risk of corruption.

* At present, there are 18 on-going projects with a value of approximately Php100Million each.

* They have their own central warehouse where they can stock construction materials for their projects.

Weaknesses

* The Purchasing department takes too much time in reacting to the Purchase Orders of the Project Managers.

* The central warehouse was located in Antipolo implying long distance from its Head Office which is located at Paco, Manila.

* Coordination and communication between departments were very poor. Thus, staff authority...