Conatruction

Principles of Management

THE GLOBE CONSTRUCTION COMPANY (case 6-2)

Group VI members:

1. LAGOS, JOANNA BSHM III

2. PAJARON, CLAIRE BSHM III

3. GALVEZ, LEAH NEE BSHM III

4. EGERRA, VENIZE MARIE BSHM III

5. VALIOLA, KAVIN KENT BSHM III

6. NAVALES, JENISA BSBA I

7. GARCIA, LEAH JEAN BSBA I

8. RAGAY, MARY GRACE BSBA I

9. EDREA, GENELYN BSBA I

THE GLOBE CONSTRUCTION COMPANY

The company was established in the mid-50s by Mr. Eduardo Conception. During the administration of President Ferdinand E. Marcos, the company grew at a very fast rate. During the 70s and early 80s, the company constructed large projects for both the government and private sectors. Globe enjoyed high margins from its government projects during this period.

When Mrs. Aquino became president, private sector construction projects in the country outnumbered government projects. Competition became more stiff forcing Globe to reduce its margins when bidding for both sectors.

At present, there are about 18 on-going projects at an estimated Bid price of at least P100 million each ranging from office condominiums, shopping centers and government buildings. The company employs 20 project managers. The workshop was attended by the president, the vice-president for administration, the vice-president for operations, the purchasing manager and all the project managers. The purchasing unit is headed by a purchasing manager to whom 15 buyers report. Each buyer is completely in-charge of purchasing materials required by one or more construction projects. The VP for operations is over-all-in-charge of on-going projects.