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Mr. Mallari's Assembly Plant Aspirations

Mr. Mallari had built a successful electronics business over the years with multiple store locations. At a class reunion, he met his former classmate who now owned an appliance assembly plant, inspiring Mr. Mallari's dream to open his own assembly factory. He had three high-achieving sons who could help him realize this goal by pursuing the right college degrees. Determining the best programs for his sons and persuading them to enroll were important steps for Mr. Mallari to achieve his ambition of establishing a factory.

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261 views4 pages

Mr. Mallari's Assembly Plant Aspirations

Mr. Mallari had built a successful electronics business over the years with multiple store locations. At a class reunion, he met his former classmate who now owned an appliance assembly plant, inspiring Mr. Mallari's dream to open his own assembly factory. He had three high-achieving sons who could help him realize this goal by pursuing the right college degrees. Determining the best programs for his sons and persuading them to enroll were important steps for Mr. Mallari to achieve his ambition of establishing a factory.

Uploaded by

tristan calara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CASE 1: ALMA ELECTRONICS: I’ll Dream of you

Mr. Andy Mallari opened a small shop selling transistor radios in 1979. His store was located at
one corner (General Luna St.) of the entire stretch of Burgos Avenue, the main thoroughfare of
Cabanatuan City.

The demand for electronic parts made him carry a wide assortment of parts that are used in the
assembly and maintenance of radios, tape recorders, amplifiers, and various related appliances.
By 1990, Mr. Mallari was able to save enough money for the purchase of a 300 square meter lot
along Del Pilar Street. He constructed a 10 meters x 15 meters two-storey building on the lot. The
ground floor is used as his store where sales are made to customers which grew in number month after
month. The second floor is used as his residence.

Mr. Mallari thinks that he can duplicate his feat in the other big towns of San Juan City, Gapan,
and Guimba. He has already started operating his stores in those towns and sales are already picking
up. His current operations cover sales and repair. There are five salesladies in Cabanatuan attending to
the various needs of the customers. Those who bring their appliances for repair are served by one of the
six technicians. The parts used come from the stocks maintained at the store.

Those who purchase parts from the store consist of technicians from the various towns of Nueva
Ecija. Somethimes, the technicians send somebody to do the purchasing of parts.

Mr. Mallari’s perspective has changed drastically after he met his former classmate Estelito Chans
in a class reunion at Aruallo University. Mr. Chan has a well-established appliance assembly plant in
Manila. He indicated that he did not start big but rather as a subcontractor for a large assembly plant.
Slowly, Mr. Chan’s business picked up untis he was able to establish his own factory.

Mr. Mallari thinks that he can follow the footsteps of his friend. As he is already 47 years old and
his oldest child is about ready to enter college, he thinks this is the best time for him to consider
sending his son to an engineering school. His decision will center on which school and which
engineering course. He feels that his children are keenly interested in whatever career he will ask them
to take.

Mr. Mallari has three sons, all belonging to the top ten in their respective classes. He thinks all
three have the potential to help him realize his dream of establishing his own assembly plant. His
immediate concern now is to identify the right college coursed for his children.
Date
At a class reunion at Araullo University in 1990, Mr. Mallari met his former classmate, Estelito
Chan.

Viewpoint
The problem was aroused from Mr. Mallari and to his sons who can help him to establish his own
dream.

Problems
Mr. Mallari wants to realize his goal of opening his own assembly factory, and he wants his sons to
help him do it. There are several methods for accomplishing this, one of which is through education.
Finding the greatest institution and course for his boys in the field of his business would bring him one
step closer to realizing his goal.
 What college courses will best suit Mr. Mallari’s sons? Will Mr. Mallari’s sons accept their
father’s idea?
 How will Mr. Mallari establish his own assembly plan?

Assumptions
It's crucial to think about the expense of setting up an assembly factory. From the feasibility study
through the operation, it costs a lot of money. Mr. Mallari should do a cost analysis to determine
whether his budget is enough.

Objectives
 To be able to identify which college courses Mr. Mallari's sons should take.
 Persuade Mr. Mallari's sons to enroll in college courses recommended by their father.
 To achieve Mr. Mallari's ambition of owning a well-established factory.

SWOT Analysis

Strengths
 As they establish additional stores in other big towns, the demand for electronic parts rises,
and they service more customers.
 High earnings

Weaknesses
 They do not hire a person to be in charge of purchasing parts.
 Mr. Mallari's goal was still in risk since it was dependent on his son's decision.

Opportunities
 Mr. Mallari can follow the footsteps of his friend when he established his own factory.
 When Mr. Mallari's sons decide to help him, he will be able to establish his own plan.
 More stores imply more job opportunities.

Threats
 Whether or not Mr. Mallari's sons will take the courses he recommends.
◦ If not, let them take whatever they want.
 Mr. Mallari's competition with Estelito Chan, a former classmate, in the appliance assembly
sector.

Summary
Mr. Mallari's business began as a small electronic supply and repair shop on Burgos Avenue in
Canabutan City, with technicians and saleswomen as employees. His business has developed to the
point where he was able to establish a new, larger shop on Del Pilar St., demonstrating that his
manpower is successful, as he has been able to diversify his operations in various towns of Nueva
Ecija. He has built a solid electronic business, but he has chosen to take his ambitions a step further by
pursuing his desire to get into a larger-scale corporation. As a result, new problems will inevitably
arise, such as the need to create a new outline for his business's workforce and the need for more
experienced workers with a deeper understanding of the electronics sector. He has three sons who could
be the cornerstones of his dream's realization. As a result, the most important aspect of his strategy is
deciding which course he would recommend to his sons.

Recommendations
Mr. Mallari advised his sons to take courses that would assist him in achieving his ambition of
opening his own assembly plant.
He needed to inform his boys about his goal of having a plant and running a business. If they
agree, he should choose the option that best fits his sons' characteristics and interests, so that they will
grow to appreciate it and have the highest possibility of getting work. Considering his business is in the
electronic industry, he should select Electronics and Communications Engineering (ECE) for his first
son. If his son becomes an electronic engineer, he will be assigned to a supervisory position. His
second son should major in business administration because he will be in charge of the company's
management. The third option is to take finance, in which case he will be in control of the company's
financial aspects.

Mr. Mallari should consults his former classmate Chan.


He should seek assistance from Mr. Chan or inquire about a strategy for making that business
profitable. He may ask about Do's and Don'ts as well as the complexities of setting up his own
assembly facility.

Mr. Mallari should consider doing a feasibility assessment before establishing the assembly
factory.
A feasibility study will assist you in determining the company ventures potential. The study would
determine whether the business was beneficial in terms of resources, time, and effort. It also aids in the
identification of faults, business difficulties, weaknesses, strengths, opportunities, threats, and
unanticipated factors that may impact the ventures success and long-term sustainability. The failure of
Mr. Mallari's business and the loss of money may have been prevented if a feasibility study had been
performed.
He should also look for a reliable supply of raw materials and consider taking out a bank loan if his
starting capital is inadequate.

Common questions

Powered by AI

Challenges in transitioning to an assembly factory include securing adequate capital, finding experienced technical staff, and ensuring a consistent quality of raw materials . Competition from established companies like Estelito Chan's could also pose a significant threat . He might overcome these by securing financial support, such as bank loans, for capital expenses; leveraging educational investments in his sons to fill key roles; conducting a robust feasibility study to guide strategic decisions, and seeking mentorship from successful peers like Mr. Chan . Additionally, implementing a structured workforce plan to recruit and train experienced workers is crucial.

Mr. Mallari's current business model supports his ambition to some extent by providing a solid foundation in electronic parts sales and repair, which has already allowed him to expand into multiple towns . This demonstrates a growing market presence and understanding of the industry, essential for scaling up to an assembly factory. However, the current model lacks the scale, infrastructure, and skilled workforce required for manufacturing, indicating the need for strategic shifts, such as hiring specialized staff and securing financial backing, to support his larger ambitions .

Mr. Mallari plans to balance his immediate needs by maintaining and possibly expanding his current repair and sales operations in multiple towns, which would continue to generate income and support his long-term goal. Simultaneously, he focuses on preparing his sons through targeted educational pathways that align with roles within a future assembly factory . This dual approach allows him to sustain his current business while laying the educational and strategic groundwork for future expansion.

Ethically, Mr. Mallari must consider his sons' autonomy and interests while persuading them to pursue specific educational paths. He should evaluate whether their personal aspirations align with his business's needs to avoid imposing undue pressure or stifling their personal growth . Balancing his business ambitions with their individual career goals is crucial to ensure they willingly contribute to the business without resentment. Inviting open discussions on their interests, potential, and mutual benefits for the family and business can foster a more ethical and supportive environment .

Mr. Mallari's encounter with Estelito Chan at a class reunion rekindles his ambition to expand his business from a series of electronic parts shops to an assembly factory. Inspired by Mr. Chan’s success, who started as a subcontractor and grew into owning a factory, Mr. Mallari considers educating his sons in fields such as electronics engineering and business administration to help him achieve this goal . Furthermore, he plans to conduct a feasibility study to identify the business potential and necessary steps, such as finding reliable suppliers and possibly taking out a bank loan .

The potential risks include the sons not being interested or not pursuing the courses their father believes are essential, which could jeopardize his plan to establish an assembly factory . Additionally, there's a threat from competitors like Estelito Chan. The rewards include capitalizing on the sons' education to strategically fill key roles within the business, such as supervisory positions, company management, and finance, thus ensuring a seamless succession and the potential for growth . This involvement can also foster family unity and long-term business sustainability.

The sons play a pivotal role in Mr. Mallari's dream as he envisions them taking on crucial roles within the future assembly plant, thereby enabling the business to grow beyond the current repair and sales shops . Their involvement is critical, as he plans to leverage their education and skills in management, engineering, and finance to ensure the successful operation of the assembly plant. Their willingness to pursue careers aligned with the business's needs is essential to realize this vision .

Consulting with Estelito Chan could provide Mr. Mallari with invaluable insights into setting up and running an assembly plant successfully. Mr. Chan's experience in evolving from a subcontractor to owning a factory could offer practical advice on business strategies, including overcoming initial challenges and understanding industry specifics. Chan might share the 'Do's and Don'ts,' advise on cost management, supplier selection, and navigating market competition . This guidance could significantly reduce risks and enhance Mr. Mallari's ability to implement effective practices in his new venture.

Mr. Mallari considers different educational pathways for each of his sons to align with strategic roles in his business. For his first son, he suggests Electronics and Communications Engineering to prepare him for a supervisory role in technical operations . The second son's education in business administration would position him to handle company management, ensuring efficient operational leadership. The third son is directed towards a finance degree to manage the business's financial aspects, thus ensuring sound financial planning and control . Each pathway corresponds directly to a critical function necessary for the successful expansion and management of his desired assembly factory.

A feasibility study can benefit Mr. Mallari by providing a comprehensive analysis of the potential success of his assembly factory venture. It can help in assessing the resource requirements, time, and effort needed for the project. By identifying strengths, weaknesses, opportunities, and threats, he can make informed decisions and mitigate risks. It also aids in understanding market demands, cost structures, and potential profitability, which could prevent business failure and financial losses .

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