Internal Company Analysis

A. Review the company’s performance in terms of key performance indicator:

1. Revenue/Sales in the past three years

The revenue for the year 2015 was ₱6,012,535.43. The revenue for the year 2016 was
₱7,048,437.75, it was higher than the previous year. This is an indicator that the company is
doing well in their business.

2. How the company’s growth compares with industry growth or vis-à-vis the other
player.

Metro Container Corporation engaging on the business of manufacturing, selling, and

In October 5, 1994, Metro Container Corporation was granted its Certificate of Registration with
the Board of Investments as Existing/Expanding Export Producers of Specialty and Novelty Tin
Cans on a Preferred Non-Pioneer Status under the government’s Omnibus Investment Code of
1987 (Executive Order 226).

One of their business partner was the Selecta Ice Cream. The raw materials for the production
of tin containers cost was high back then so the company need to increased the price of the tin
containers. As a result, their business partner find another company which create a plastic
packaging.

During the 2nd half of 2003, the corporation diversified thru investments of machineries and
equipments for plastic packaging in both the blow and injection moulding categories. This is in
response to the clamor of long-standing business partners namely Unilever-RFM Ice Cream,
Inc. (Selecta Ice Cream) and San Pablo Manufacturing Corporation (Minola Cooking Oil) to
serve their plastic packaging requirements. With these, the company’s imminent direction now is
to pursue other plastic packaging requirements in various industry categories like food,
detergent, motor oil, paints and wax.

3. Profitability, other relevant performance indicators

Understanding financial ratios is a key business skill for any business owner or entrepreneur.
Financial ratios illustrate the strengths and weaknesses of a business. By examining ratios over
time, a business owner can notice any unusual fluctuations in financial ratios and can note how
the business is performing over time. Ratios are also helpful tools in financial analysis and
forecasting; ratios allow entrepreneurs to set specific goals and to easily track progress toward
those goals.

Operating margin shows how much of a company’s revenue is left after paying off all operating
expenses, such as employee salaries and raw material costs. A low operating margin is a sign
that a business might not have enough revenue to pay off debt and other non-operating costs.
Operating Margin = Operating Income
Net Sales
Gross margin is a representation of how much revenue remains after a company pays all of the
direct costs associated with generating that revenue. The higher this ratio is, the more revenue
the company has to pay off other expenses.
Gross Margin = (Revenue – Cost of Goods Sold)
Revenue
This ratio measures how much profit the shareholder’s investment has generated. A higher
ROE percentage indicates that shareholders are receiving a better return on their investment.
ROE (Return on Equity) = Net Income
Shareholder’s Equity
This ratio measures how profitable a company is relative to its total assets. A high ROA
indicates that management is effectively utilizing the company’s assets to generate profit.
ROA (Return on Assets) = Net Income
Total Assets
The quick ratio measures the liquidity of a company. The higher this ratio, the more liquid assets
a company has to meet immediate financial obligations.
Quick Ratio = (Current Assets – Inventories)
Current Liabilities

The current ratio is a bit more forward-looking than the quick ratio; unlike the quick ratio, the
current ratio includes inventories in current assets, because inventories can be sold over a short
period of time to generate cash.
Current Ratio = Current Assets
Current Liabilities
This ratio indicates how levered a company is. A high debt to equity ratio illustrates that a
company is highly levered, or that it carries a lot of debt relative to shareholder’s equity. The
appropriate debt to equity ratio depends on a company’s industry and financial health.
Debt to Equity Ratio = Total Liabilities
Shareholder’s Equity

5. Value Chain Analysis

A company’s value chain consists of two broad categories: (1) the primary activities that
are foremost in creating value for customers. The activities involve here are the
physical creation of the product and its sale and transfer to the buyer as well as after
sale assistance, and (2) and the requisite support activities that facilitate and enhance
the performance of the primary activities by providing purchased inputs, technology,
human resources, and various firm wide-functions.
Primary Activities
Primary Activities are those functions which are directly involved in the production,
processing, and distribution of the product. These activities may fall among the
following: Inbound Logistics, Production and Operations, Outbound Logistics or
Distribution, Marketing and Sales, and Service. Inbound Logistics involve relationship
with suppliers and include all activities required to receive, store and disseminate
inputs. Operations used to turn a company’s raw material into final output. Outbound
Logistics pertain to product distribution from point of production to final consumption.
Sales and Marketing are the activities needed to get a buyer to purchase a product
include channel selection, advertising and pricing. Finally, service activities are those
that increase a product’s value, including customer support and repair services.
Supporting Activities
While support activities are not directly involved in the manufacture and movement of
the product, these activities have critical impact on the efficiency of production and
distribution. Support activities serve as the value chain’s enabling environment. These
support activities include: Procurement, Human Resource Management, Technological
Development and Infrastructure. Procurement also known as purchasing is the
acquisition of inputs, or resources for the firm. Human Resource Management consist
of all activities involved in recruiting, hiring, training, developing, compensating and
dismissing or laying off personnel if necessary. Technological Development pertains to
the equipment, hardware, software, procedures and technical knowledge. Infrastructure
serves as company’s needs and ties its various parts together, it consists of functions
or departments such as accounting, legal, finance, planning, public affairs, quality
assurance and general management.

B. Major strengths and weaknesses of the company.

C. IFE Matrix

D. Summary and Conclusion

1. Major financial and strategic issues

2. Key organizational element that may hinder or promote growth and productivity.

 Leaders who are dedicated to innovation and express commitment through words and
actions. Leaders can play crucial role in influencing work culture, balancing new ideas
into actions. Inspires his employees and stretches them to their optimum productivity.
 Diverse staff members who are passionate about organization’s mission and
empowered to make decisions. Staff members who represent different backgrounds,
perspectives and skills open range of new ideas and can deliver valuable feedback.
 Innovation is one of the key factors that Metro Container Corporation should concentrate
into. There are a lot of potential competitors and they should know how to innovate their
products and services to keep their loyal clients.
 Facilities and equipment including buildings, site maintenance, management of
machinery and facilities, and application of technology. This facilities and equipment
highlights the Metro Container Corporation’s way of achieving product quality, service
excellence and customer satisfaction.
 Organizations need sufficient financial resources in order to promote the growth and
productivity of the company. The financial resources of Metro Container Corporation will
take and affect its capability to realize its set business goals and objectives.