sample report: company analysis

7/27/2019 Sample report: company analysis

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PARTNERSHIP

Local partnership:


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Background

On July 10, 1931, the company wasincorporated Ortigas, Madrigal y cia., S. enC. as a limited partnership by shares

(sociedad comanditaria por acciones). Theparties to the partnership were FranciscoOrtigas (Don Paco), Vicente Madrigal, B.C.M.Johnston, Fulgencio Borromeo, Clyde A.

Dewitt and Manuel L. Quezon.


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Background

When Ortigas & Company took overmanagement of the estate, it was a virtualwasteland. It was the vision of the management

team, headed by Atty. Francisco Ortigas, Jr., whowas President and Chairman at that time thattransformed this wasteland into a progressiveindustrial, commercial, and residential urban

complex.


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The objective of the partnership was to acquire theHacienda de Mandaloyon, which spanned themunicipalities that are now known as Mandaluyong, San

Juan, Pasig & Quezon City. The Estate was to be disposedof either in large tracts or developed subdivided lots.


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OCLP

Where wild grass used to grow now stands the following:

... residential subdivisions (Barranca, Capitol, Wack-Wack, Greenhills, Valle Verde,Greenmeadows)

... shopping complexes (Greenhills Shopping Center, Tiendesitas at Frontera Verde,SM Megamall, Robinsons Galleria, EDSA Shangri-La Plaza)

... hospitals (The New Medical City, Rizal Provincial Hospital, Cardinal Santos MedicalCenter)

... schools (De La Salle - Greenhills, Xavier School, Immaculate Conception Academy,Lourdes School, St. Pedro Poveda College, St. Paul College)

... churches (Santuario de San Jose, Mary The Queen, St. Francis, Our Lady of Peace

Parish / EDSA Shrine)... army camps (Camp Crame, Camp Aguinaldo, Rizal PC Headquarters)

... exclusive golf and country clubs (Valle Verde Country Club, Green Valley CountryClub, Wack-Wack Golf and Country Club)


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The Current Portfolio of Ortigas & Company, Limited Partnership


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PROJECTS


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Greenhills Shopping Center

Greenhills Shopping Center is a shoppingcenter in the city of San Juan in thePhilippines.


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Tiendesitas

Tiendesitas is a premier shopping andfamily entertainment destination inPasig City, which is owned by Ortigas

& Company.


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Circulo Verde

Circulo Verde is a 12-hectare master-

planned development that combines

all living essentials in a containedcommunity.


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Frontera Verde

Frontera Verde is an interim 18.5 hectaredevelopment project at the corner of OrtigasAvenue and E. Rodriguez Jr. Avenue (C-5) in

Barangay Ugong, Pasig City. Its anchorlocator is Tiendesitas, which is owned andmanaged by Ortigas & Company. Otherlocators in Frontera Verde are SM

Hypermarket, Fun Ranch, Ark Avilon,Transcom Center, Silver City, and Shell GasStation.


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Luntala Valle Verde

Luntala is a 77-unit residential townhousedevelopment located along Firefly Street, inside

Valle Verde 6-A. Two major road arteries, the

Ortigas Avenue and the Green Meadows Avenue,bound it.


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OCLP

Vision / Mission

To Be the Preferred Partner for Value-Driven RealEstate Ventures

Core Values

Customer Satisfaction Creativity Excellence Loyalty

Integrity Teamwork Employee Satisfaction


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Mission

Our partnership aims to lead the real estate ventures industry in providing our

clients with the optimal quality of daily living from the finest middle to

upscale residential and commercial spaces located within or proximate to

Manilas major business districts. Our ventures are conceived, designed and

developed from continually researched innovation, state of the art technology

and structural engineering and construction by a team of men and women

dedicated to excellence and committed to service. No less than industry

leaders from all over, oversee every aspect of the business from concept to

design to construction. And while Ortigas & Company, Limited Partnership

looks ahead to the next decade to become the industry leader, it also commits

itself to being an active partner of the Filipino community in nation buildingthrough the Ortigas & Company Foundation.


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INTERNAL

ASSESSMENT


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Internal analysis

Strengths :

Established their name on real estate

developments through time

Funds are available for future projects

The workforce abides by the core values

Weakness :

Priced at a premium


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Management Audit

Managers exercise their authority effectively.

Companys objectives and goals are

measurable and well communicated. Employee morale is high.


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Marketing Audit

The product quality and customer service isgood.

The firms marketing managers haveadequate experience and training.

The firm has an effective sales organization.


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Finance/ Accounting Audit

The firm can raise both needed short-termand long-term capital.

They have sufficient working capital. The firms financial managers are well

capable.


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Production/Operations Audit

The facilities, resources, and markets areaccessible to private schools, hospitals,churches, post offices, police stations, amplewater supply, plus private sports and socialclubs.


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Research & Development Audit

The partnership performs their Research andDevelopment facilities are at their discretion.

House designs are in line with the new trends

Continuous research/study for newknowledge and information on what styles ofhousing would be appealing to the potential

customers


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Management Information System

audit

has tapped the technology of SAP to boost itsoperations and to aid its 10-year expansionplan to put the company at par with itscompetitors.

the company would be able to efficientlystore and manage its entire database and

improve operational efficiency. SAP, the world's leading provider of business

software solutions.


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External analysis


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Economic forces

Inflation as prices of raw materials increase, the cost of

construction and selling price increases as well.

The budget for housing decreases as consumers areprioritizing basic necessities

Income sales are affected by the purchasing power of the target

market. nowadays, a larger margin of the market can afford

medium to upscale housing


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Social, Cultural, Demographic, &

EnvironmentalLifestyle manner of living of a person

Consumer behavior when, why, howand where people would buy

Population number of people in themarket

Philippines: 92 million

Age bracket what would cater todifferent generations

* Generation Y


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Political, Government, & Legal

Tax rates

- Capital gains tax imposed by the government for the sale of an immovable property

capital gain tax :6%

- Articles of Limited Partnership must be filed for record in the Office of the Securities andExchange Commission.


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Technological

Internet selling real estate

properties are madeeasy through onlineAdvertisements /

transactions.


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Competitive

Many developers enterthe market withpromising projects

Too many real estate forsale

Cheaper prices by thecompetitors


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SWOT MATRIX


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Opportunities

Threats

Strengths

S: Easier access tomortgage, long tenure

loans

O: Large amount ofpotential buyers

= Market penetration

S: Established theirname on real estate

developments

T: Too manycompetitors

= Market development

Weaknesses

W: Priced at a premium

O: Shortage on housing

= Backward integration

T: many strong

competitors

W: sluggish marketexpansion

= Market penetration


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STRATEGY IMPLEMENTATION

Strategy:

1. Backward Integration

Produce their own raw materials.

2. Market Penetration Increase sales persons

Use different types of media promotions eg.Television, radio, magazines


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STRATEGY IMPLEMENTATION

Strategy:

3. Market development Expand/branch out their business to other geographic

areas


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Management

Since the first strategy that they shouldimplement is market penetration, it will notrequire any organizational structure changes


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Finance / Accounting

- Tie-up with financially ailing Fil-Estate whose vastinterests are primarily in South Manila, specificallyMuntinlupa area(this also is a financial strategybecause it becomes a joint investment)

- Harp on lighter mode payment scheme to be able tocapture the emerging viable market of youngfinancially enabled buyers from the BPO industry


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Marketing

Aggressively pursue emerging markets fromthe BPO and the newly enabled families ofthe OFW's

-by entering into joint ventures with interestedmembers of the industry

operating in other geographic areas

-by exploring markets outside metro manila


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Production/Operations

We will have a cost-cutting by producing our

own raw materials


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Research and Development

They should improve their I.T department for

R&D


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Management Information

SystemsTECHNOLOGICAL IMPROVEMENT:

Ortigas & Co. Modernizes Operations withSAP and BT Properties developer BayanTradeto improve on operational efficiency and theability to maintain a centralized database.


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STRATEGY EVALUATION

CONSONANCE

Strong economic foundation of the business


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STRATEGY EVALUATION

ADVANTAGE

Theyve been in the industry for more than a

decade that enable them to compete with otherlarger firms.

The company enjoys a good strong image In theindustry and in the public

The company presently operates in a siteproximate to one of the strongest expandingbusiness districts (right now, BPOs are growingin presence in the are)


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STRATEGY EVALUATION

CONSISTENCY

Their projects are consistent with the firms goals by

continuous real estate developments


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STRATEGY EVALUATION

FEASIBILITY

The firm is able to pursue its objectives through their

strengths and opportunities in the industry.


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Measuring Organizational

Performance

OCLP was able to achieve their plans withtheir previous projects such as the GreenhillsShopping Center and Serendra


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Taking corrective actions

The existing strategy of OCLP which isproduct development should be retained atthe same time implement market

penetration and market development


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Contingency Planning

Develop an aggressive marketing concept tobe offered directly to middle and uppermanagement of BPO's (call center) through

group presentations.


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Conclusion/Recommendation

The initial development strategy was twopronged : (1) develop industrial propertiesand allow subdivisions and community

facilities to emerge around it; and (2) focus onelite motivation: first class homes madeattractive by a modern and accessibleamenities like private schools, hospitals,

churches, post offices, police stations, amplewater supply, plus private sports and socialclubs.


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Our

Conclusion/Recommendation Our formulated strategies are: (1) To develop

Market Penetration by increasing salespersons , (2)To implement Market

Development by expanding their business toother locations and (3) To produce their ownraw materials through Backward Integration.


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Ortigas & Company, Limited Partnership looksforward to 2021, the centennial year of thecompany, 100 years of sustained growth andlandmark achievements in the real estate industry.And, we dream now of where we will be in the next

hundred years. We dream of every Filipino reapingthe benefits of the life he worked and aspired forand a nation that has become a major world playerand not the largely deprived society that it is toutednow to be. Ortigas & Company will be a strongdriving force in the achievement of those dreams.


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The past year , this year and,most likely until the next yearare trying times for all of us.On top of our own struggle inour own economic problems,

the present scenario isbeleaguered by globalevents. But, this is theopportune time for Ortigas&Company, LimitedPartnership to adapt,

innovate and forge aheadwhile not forgetting itscommitment to the Filipinonation.

sample report: company analysis

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