On February 27, 1981, the Federal Republic of Germany and the Republic of the Philippines entered into a contract to develop applications of solar energy in the Philippines. The project was called the Philippine-German Solar Energy Project (PGSEP). It was funded by the German companies with a counterpart fund from the Philippines Office of Energy Affairs (Non-Conventional Resources Division). Philippine National Oil Company (PNOC) was the implementing arm through its Energy Research and Development Center (ERDC). The technology introduced by the Germans is for the installation of stand-alone photovoltaic energy generating systems or solar energy systems for households that are out-of-reach from the conventional power grid. More than 17 kilometers of distance from the power grid would make the PV systems unfeasible because if it is much shorter than that, the cost of extensions line from the power grid will be cheaper. PGSEP is looking for a local group or company to undertake the project commercially because the contract prohibits PGSEP from commercializing the venture.
Anton Co the entrepreneur-owner of ALCO Group along with Bingo Dimalata, the consultant of the company, was invited to see the prospects. Anton Co’s intuition was optimistic but he asked Bingo to the make a study and assessment on the prospects. ALCO Group is the mother company of Structura, Inc. (SI). SI has been working with PGSEP for 4 years, manufacturing best quality steel frames and bases for the solar panels. Now there’s an opportunity for SI for a business venture in commercializing the PV systems. Bingo Dimalata will make his recommendations on the viability of the SI project which is the commercialization of those PV systems.
Statement of the Problem
› Should Struktura Inc., push through with its project on commercializing the venture even if the Philippine government disallowed them? › Should Anton Co as the owner of Struktura Inc., accept the offer of Frank Schneider? › Can the project be determined by the end of the year?
Statement of the Objectives
›To be able to find right ways to pursue the commercializing the project. ›To be able to identify the advantage and disadvantages of the offered project. ›To make any ways to determine the project before the year ends.
Areas of Considerations
The following are the areas to which the organization may take serious considerations in order to successfully stay in competition.
›The Philippine government disallowed them from commercializing the venture.
›They still need to identify Filipino companies to supply the solar panel.
›Most rural areas in the Philippines are still to be electrified.
A straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). STREGNTH •It is known to be the most reliable in supplying good quality of components.•produces cheaper prices and good quality•their quality work was recognized by the very exacting German technicians form PGSEP. | WEAKNESS•they still need to increase their capabilities in SBU.| OPPORTUNITIES•there are still more rural areas that need to be electrified.•there was a waiting list of 120 customers already. | THREATS•the Philippine government disallowed them to commercialize the venture.|
Alternative Courses of Action
1. The company may identify a local group to undertake the project commercially.
• They can now pursue the project and help those areas that need to be electrified.
•This could generate additional income to the company and help those in rural areas. Disadvantage/s:
•The company cannot be determined for their production.
2. As the owner of the company he has the right to decide for the benefit of the group by accepting the offer. Advantage/s:
•It would be a big help to the company in doing the project fast.
•It would lessen the effort to make some plans for the project. Disadvantage/s:
•There is only 39% average of the unelectrified household in Burias.
Conclusion and Recommendation
In the conclusion, Struktura Inc., is known to its reliable supplies in components so there are any no doubts for them to find companies that would help them in commercializing the project. And to the owner Mr. Anton Co, he may accept the offer given to him by Mr. Frank Schneider to make Burias his pilot phase.
As to the recommendation, they need to find any companies that would help them in commercializing the project and pursue the plan they made. And to Mr. Co as the owner of the SI it would be better if he accept the offer made by Mr. Schneider to make Burias as his pilot phase for I cannot see any other problem if he consider the proposal of Mr. Schneider and through this wise decision he will make they can now make the project be determine by the end of the year.