STRATEGIC MANAGEMENT PLAN FOR FAL CONSULTING ENGINEERS

TABLE OF CONTENTS
Title Page
Table of Contents . . . . . . . . 1-2
List of Figures . . . . . . . . 3
List of Tables . . . . . . . . 3
Acknowledgement . . . . . . . . 4
I. Executive Summary . . . . . . . 5
II. Industry Analysis . . . . . . . 5
III. Business Profile . . . . . . . 5-6
Vision . . . . . . . 7-11
Mission . . . . . . . 11-16
Business Philosophy . . . . . . . 16-18
IV. Environmental Scanning . . . . . . 18
External Environment . . . . . . 18
Economic . . . . . . 19
Socio-Cultural. . . . . . 20
Legal-Political. . . . . . 20-21
Technological . . . . . . 21
Environmental. . . . . . 21-22
Competitors . . . . . . 22
Internal Environment . . . . . . . 22
Management/Organization . . . . 23
Human Resources . . . . 23
Organization Chart . . . . 23-24
Job Description . . . . 24-27
Compensation . . . . . 27
Marketing . . . . . . 27
Target Market . . . . . 27-28
Products . . . . . 28
 Price . . . . . . 28
Place . . . . . . 28
Promotion . . . . . 29
Internal Assessment . . . . . . . 29
Key Internal Forces . . . . . . . 29-32
Financial . . . . . . 32-33
Corporate Social Responsibility . . . 34
Strengths and Weakness . . . . 34-35
Michael Porter’s Five Forces . . . . . . 35-36
V. Strategy Formulation . . . . . . . 37
External Factor Matrix . . . . . . 37-38
Internal Factor Matrix . . . . . . . 38-39
Competitive Profile Matrix . . . . . . 39
SWOT Matrix . . . . . . . . 40
Balanced Scorecard . . . . . . . 41- 42
SPATRES Matrix – Market Penetration
Objective 1 . . . . . . . 43-44
Objective 2 . . . . . . . 44-45
SPATRES Matrix – Product Development
Objective 1 . . . . . . . 45
Objective 2 . . . . . . . 45-46
Evaluation and Control
(Business Model Canvas) . . . . . . 46-49
VI. Conclusion . . . . . . . . 49
VII. Disclaimer . . . . . . . . 50
VII. References . . . . . . . . 51

2
 LIST OF FIGURES
Figure 1. Fal Consulting Engineers (FCE) Logo . . . 7
Figure 2: Technical Group Organizational Chart of FCE . . . 23
Figure 3: Classification Services offered by FCE . . . . 28
Figure 4: External Factor Evaluation Matrix . . . . . 37
Figure 5: Internal Factor Evaluation Matrix. . . . . . 38
Figure 6: Competitive Profile Matrix. . . . . . 39
Figure 7: Business Model Canvas . . . . . . 47

LIST OF TABLES
Table 1. Vision Statement Analysis . . . . . . 8-10

Table 2. Mission Statement Analysis . . . . . . 12-15

Table 3: FCE’s list of primary competitors . . . . . 22

Table 4: Key Internal Forces . . . . . . . 29-32

Table 5: Comprehensive Income . . . . . . 32-33

Table 6: Balance Sheet . . . . . . . 33

Table 7: Financial Ratios . . . . . . . 33

Table 8: SPATRES Matrix, Market Penetration: Objective 1 . . 43-44

Table 9: SPATRES Matrix, Market Penetration: Objective 2 . . 44-45

Table 10: SPATRES Matrix, Product Development: Objective 1 . . 45

Table 10: SPATRES Matrix, Product Development: Objective 2 . . 45-46

3
ACKNOWLEDGEMENT

4
I. EXECUTIVE SUMMARY
To give a better insight on the structural engineering services industry, it is important

to distinguish the difference between Civil and structural engineering services. These are two

separate disciplines. Whereas civil engineering tends to focus on the built environment such

as buildings and bridges, while structural engineering focuses more on designing and

maintaining the structures and frameworks within such constructions. Every building requires

meticulous and multidisciplinary technical know-how to fulfil various financial and legal

requirements, third-party civil and structural services can prove incredibly beneficial for the

business. Such third-party services are also essential when objective and independent

expertise is required during dispute cases and with regards to documentation support for bills

of quantities. Thus, paved the birth of civil and structural engineering services in this

particular study the structural engineering services industry will be highlighted.

II. INDUSTRY ANALYSIS

Structural engineering is an important field that focuses on the design and

development of safe and stable structures. It is a type of civil engineering that addresses the

impact of physical force on force-resisting elements. The field of structural engineering

assigns numerical quantities to physical forces and evaluates how different structural

elements will respond to these forces. To successfully complete any type of structural

engineering project, professionals must go through a lengthy process of analysis and design.

The engineer analyzes known forces, designs elements that should withstand them and tests

the design for accuracy and performance. Independent third-party expertise just like the FCE

or FAL CONSULTANCY ENGINEERING can help ensure that a building stands the tests of

time, weather and utilization. FCE follows a multitude of standards for construction and

building projects that have emerged over the past few decades covering areas such as

structural stability, structural safety, fire protection, as well as a building’s

5
technical installations. These standards can help developers create safer and more reliable

structures and environments for their occupants. Third-party testing and analyses according to

these standards can also minimize damage rectification costs, extend the life of a structure

and increase its value.

Further benefits include of having a third-party expert in construction, such as our

corporate target study which is the FCE or Fal Consulting Engineers are the following:

Saving on costs – by engaging cost-effective integrated project management solutions.

Minimizing risk – by identifying quality problems early on and reducing the risk of

expensive reworking delays and legal liabilities that can damage your reputation.

Improving quality control – with interdisciplinary support, which gives efficient

single-source control that allows to keep the project on schedule, improve the quality of

the final product and increase user satisfaction.

Enhancing efficiency – with concrete one-stop solutions that can accommodate all are

technical, project management and quality needs.

Gaining a competitive edge – by partnering with a globally renowned third-party

service provider that has a strong reputation for quality, safety and sustainability.

III. BUSINESS PROFILE

Fal Consulting Engineers [FCE], is a full-time structural engineering design and

consultancy firm founded in November 2009 by its Principal Engineer and General Manager,

Jason B. Cabungco.

FCE envisions itself to become a leading engineering service provider in the industry

by offering its clients unparalleled products and services. FCE aim to veer away from the

6
traditional and unfounded. Our products and services rests on internationally recognized

engineering codes. FCE take pride in our ability to fuse latest construction methodologies in

our design considerations.

The business plan converges on the facets of technical leadership, diligence, quality,

timeliness, and cost control. The company believes in adhering in these core competencies,

would be able to deliver to our clients the following:

 Increased value on their investments through superior and reliable engineering

designs.

 Peace of mind through diligent assessment of potential hazards and other

phenomena detrimental to the structure.

 Market advantage through increased value of our services and spearheaded by

competent and design professionals.

Figure 1: Fal Consulting Engineers Logo

Vision Statement

FCE, in its constant pursuit for technical excellence, envisions itself as a premiere

engineering service provider that offers the technically viable solutions to any structural

7
engineering needs; the most dependable and highly reliable construction methodologies; and

the most cost-effective, construction management system.

Looking into the company’s Vision and Mission statement and applying the key

takeaways, this study, enumerated criterion of an ideal Vision and Mission statement, and

hereunder are the insights of researchers on their existing VMW.

Table 1. Vision Statement Analysis

VISION CRITERIA EVALUATION

“FCE, in its constant pursuit 1. CONCISE NO

for technical excellence, This is not the place to stuff a The statement seems to be

envisions itself as a premiere document with fluff conditional since it has a

engineering service provider statements. It should be precondition phrases “in its

that offers the technically simple, easy to read and cut constant pursuit for

viable solutions to any to the essentials so that it can technical excellence “These

structural engineering needs; be set to memory and be pre conditional phrases puts

the most dependable and repeated accurately. the company’s excellence

highly reliable construction on a pre conditioned level

methodologies; and the most focusing on

cost-effective construction technical aspects alone It

management system. limits the company to excel

in any other aspects

specifically on the product

or service they’ are

offering

8
2. CLEAR NO

A good rule of thumb for The statement signifies three

clarity is to focus on one goals. There are other two

primary goal, rather than goals that make the

trying to fill the document statement scattered and

with a scattering of ideas. difficult to grasp the

One clear objective is also company’s main goal.

easier to focus on and (goals are highlighted in

achieve. different colors)

3. TIME HORIZON The statement does not have

A time horizon is simply a a time bound that will

fixed point in the future when measure its success or

you will achieve and evaluate failure. IT signifies no

your vision statement. thought of a roadmap to

where the company wants to

be within a certain

timeframe.

4. FUTURE ORIENTED Not clearly stated

The vision statement is not

what the company is

presently engaged in but

rather a future objective

where the company plans to

be.

9
5. STABLE Since the statement has a lot

The vision statement is a of fluff statements such as

long-term goal that should, “in constant pursuit” a

ideally, not be affected by the premiere engineering,

market or technological most highly and most cost

changes. effective. These statements

are all pre = take off

conditions that are subjective

and cannot easily quantify its

results.

6. CHALLENGING Yes, the objectives are

Your objective shouldn’t be challenging however,

too easy to achieve, but also objectives are again are

it shouldn’t be so unrealistic difficult to achieve because

as to be discarded. of subjectivity.

7. INSPIRING It is inspiring but not too

Live up to the title of the strong in conveying its

document, and create message

something that will rally the

troops and be desirable as a

goal for all those involved in

the organization.

10
Proposed Vision Statement

To become the leading engineering service provider of all times using excellent

technical viable solutions, reliable local and international construction methodologies

and most cost-effective construction management system.

Mission Statement

 To provide quality solutions that work in the field of engineering design and

construction geared towards the achievement of overall structure integrity.

 To provide clients with deliverables on a timely basis.

 To provide services that merits technical excellence.

 To provide clients with a mutually beneficial relationship and help them attain their

business goals. Provide clients three-dimensional rendering of our designs and avoid

spatial conflicts.

 To provide deliverables in accordance with the acceptable and recognized local and

international codes and standards depending on the project requirements.

11
 Table 2. Mission Statement Analysis

MISSION CRITERIA EVALUATION

To provide quality solutions Customer Focus Yes. The statement detailed

that work in the field of define organization’s purpose and convey what exactly

engineering design and in terms of meeting customer the customer will obtain.

construction geared towards needs or providing solutions However, it is too long and

the achievement of overall for them too difficult to memorize.

structure integrity.

To provide clients with

deliverables on a timely basis.

To provide services that merits

technical excellence.

To provide clients with a

mutually beneficial

relationship and help them

attain their business goals.

Provide clients three-

dimensional rendering of our

designs and avoid spatial

conflicts.

To provide quality solutions Products or Services “Yes in fact too many and

that work in the field of ( The highlighted words are too detailed focus on what

engineering design and the products and services products or services to

construction geared towards being offered) serve rather than what

the achievement of overall solutions to provide for

structure integrity. customers. These

To provide clients with statements provide less

deliverables on a timely basis. flexibility for the company

To provide services that because most products

merits technical excellence. have short life cycle and

To provide clients with a offer limited market

mutually beneficial expansion.

relationship and help them

attain their business goals.

Provide clients three-

dimensional rendering of our

designs and avoid spatial

conflicts.

Pro-Quality Solutions. Technological Aspects Yes. – the 3 concepts are

Technical excellence basic technology that are

Three dimensional designs being used in the company

Concern for survival, growth, No, the statements

and profitability – is the firm are merely customer focus.

commitment to growth and

financial soundness.

13
To provide quality solutions Philosophy Yes -

that work in the field of What are the basic beliefs, This particular statement

engineering design and values and philosophies that captures the company’s

construction geared towards guide an organization? beliefs and values

the achievement of overall emphasizing the overall

structure integrity. structural integrity

To provide quality solutions Self-concept NO, the statement lacks a

that work in the field of What are the firm’s strengths, unique proposition that will

engineering design and competencies or competitive make the organization stand

construction geared towards advantages? out from the rest such as

the achievement of overall latest structural design,

structure integrity. technology or software. All

To provide clients with statements are merely,

deliverables on a timely basis. promotable thing that any

To provide services that consulting firm can always

merits technical excellence. relay in order to capture

To provide clients with a clients

mutually beneficial

relationship and help them

attain their business goals.

Provide clients three-

dimensional rendering of our

designs and avoid spatial

conflicts.
 Concern for employees Not evident

How does the company treat

its employees

To provide quality solutions Concern for public image Yes

that work in the field of Is the firm socially

engineering design and responsible and

construction geared towards environmentally friendly?

the achievement of overall

structure integrity.

Why creating a mission is important?

Studies have been conducted to find out if having and communicating mission statement

helps an organization to achieve higher performance, the results are mixed. As David

concluded, some studies found positive relationship between written statements and higher

organizational performance, while other studies found none or even negative relationship.

Further, he added that, one of the reasons why most of the companies create mission

statement is that it’s fashionable to do so and little effort is made to actually communicate

that mission to its stakeholders. Nonetheless, all of the authors agree that mission brings the

following benefits:

 Informs organization’s stakeholders about its plans and goals;

 Unifies employees’ efforts in pursuing company goals;

 Serves as an effective public relations tool;

15
  Provides basis for allocating resources;

 Guides strategic or daily decision making;

 Shows that a company is proactive.

Following the guidelines and considering the importance and benefits of creating a sound and

ideal mission statement, the researchers came up with the proposed Mission Statement for

FAL CONSULTING ENGINEERING (FCE).

Proposed Mission Statement

Provide customers the highest quality possible solutions in structural designs

and construction, gearing towards the overall structural integrity, stability

and security.

The new mission statement signifies customer focus, products services focus

and lastly it carries what the company does and will continue to do.

Business Philosophy

The following are the philosophies of the organization, passion to build, passion to

serve as the groundwork of commitment to provide maximum productivity and maximized

profit to clients and stakeholders. Passion to work is imperative to organizational vitality,

fuels to become high-performing organization, and propels desire to exceed expectations.

Pursuit to Excellence
As an established engineering firm, with a strong supporter of technical standards. The

company is held highly accountable in all its dealings and is very much responsible for the

success of every project. This is why FCE is built on the cornerstone of technical excellence.

16
The organization and its people will continually strive for technical leadership that has vision

and superior technical competence. Integrity, Credibility serves as an important foundation in

which the company pillars of client satisfaction and technical competence are built. Each

employee guarantee that they always be creative and skilled problem solvers who can think

critically using sound principles and concepts geared toward providing better and intelligent

solutions, every time. Further, they render “due care” in the execution of their duties. They

make a continual effort of validating the conformance of their procedure as well as their

products versus cost, technical integrity, and potential risks and hazards. They integrate this

philosophy in the organization because they believe that it is their business to provide their

client with superior technical information so that they could come up with an informed

decision. FCE also acts as a prime professional for allied engineering services such as

mechanical, electrical, sanitary/plumbing, and fire prevention.

Likewise, FCE's primary service scope is structural engineering. Their team consist of

competent engineers utilizes only the latest in technology, building codes and software

available. The company aim to provide the most cost-effective yet reliable designs.

Depending on the project requirements, this specialized field is classified in a more detailed

discipline namely:

 Construction management

 Approval of alternatives or equivalent materials during construction

 General costing of engineering design for budgetary purposes

 Inspection during design implementation and construction

 Coordination among the engineering and architectural disciplines to avoid design and

spatial conflicts.

17
  Attendance during pre-bid conference to eliminate gray areas in the design and

costing of the general and sub-contractors

 Coordination of design issues during construction management

 Approval of alternatives or equivalent materials during construction

 General costing of engineering design for budgetary purposes

 Inspection during design implementation and construction

 Coordination among the engineering and architectural disciplines to avoid design and

spatial conflicts.

IV. ENVIRONMENTAL SCANNING

Environmental scanning is the process of gathering information about events and their

relationships within an organization's internal and external environments. The basic purpose

of environmental scanning is to help management determine the future direction of the

organization. The main function of environmental analysis is to develop information about

the environment. Information has two primary strategic role - in objective setting and in

strategy formulation. As managers scan the environment, they interpret environmental

influence in the light of their own perceptions, expectations, and values.

4.1 EXTERNAL ENVIRONMENT

In doing the external environment analysis, macro environmental industry, and

competitor environment is being examined. It is vital for every business to analyze and

determine the factors that affects its operation and position in the market. Identifying

potential threats and opportunities that will influence the growth and profitability of the

company to move forward, adapt to changes and become more competitive.

18
ECONOMIC

In adopting optimization-based design procedures the company itself will have drastic

environmental impact and contribute on the economic development of the construction

industry and the following are its PROs:

 Province of Cavite has one of the most developing structural

engineering services in the country where Fal Consulting Engineers

(FCE) is located, due to its high rate of urbanization which helps

transform the province from an agricultural into an industrial and

commercial giant in CALABARZON in terms of economic

productivity, with its viable location (closest province to Manila) and

capabilities, many potential clients surround the area.

 The structural engineering design and consultancy firm needs strength

and expertise. Its cost-effective construction system is the most

dependable and highly reliable. FCE aims to provide excellent

engineering services that adheres not only local but also international

codes and standards, utilizing the latest in engineering design and 3D

rendering technologies at competitive rates is its commitment to their

most valued clients.

As many new businesses are opening up and employment increases the structure of

the offices needs to be improved for the safety of each and every personnel, the FCE needs to

see factors that motivate them, designs that brings an impact to the potential clients and

attract new opportunities for growth.

19
 SOCIO-CULTURAL

FCE is consistently improving the capability of their projects to withstand

earthquakes and other natural hazards, by adjusting the strength of their buildings as well as by

promoting sound design, safety standards and construction practice.

 As most of the Filipinos known to be business minded people and structural

buildings are one of the trends that will catch the eyes of many potential

customers.

 The professionals often look for the buildings that are high-end residential,

mid-rise/commercial, high-rise, industrial, and oil and gas structures and

facilities located near their work.

 We, as Filipinos fond of the trends, FCE’s technical excellence, efficiency,

innovation and diligence in engineering design processes and project

execution improves through the years.

LEGAL-POLITICAL

FCE not only maintaining its good reputation in the industry but also committed to its

obligation in paying taxes as well as compliant with other city regulations or business permits

such as Mayor’s permit, Sanitary, Bureau of Fire Protection permit and others.

Likewise, FCE adheres with the local and internal codes and standards in processing

their services/products. The company utilize the National Structural Code of the Philippines

2010 6th Edition, the latest code published by ASEP, as the minimum requirement in their

goal of providing their clients structural engineering designs that merits technical excellence.

More so, their projects underwent structural soundness and stability analysis as part of its

regulatory compliance mandated by the provisions of P.D. 1096.

20
 P.D.1096 commonly known as the “National Building Code of the Philippines” was

enacted by former President E Marcos in 1977 to address the limitations of the R.A. 6541

“An Act to Ordain and Institute a National Building Code of the Philippines” to address the

accelerating economic and physical development of the nation during his tenure. P.D. 1096

Section 102 states that: "It is hereby declared to be the policy of the State to safeguard life,

health, property, and public welfare, consistent with the principles of sound environmental

management and control; and to this end, make it the purpose of this Code to provide for all

buildings and structures, a framework of minimum standards and requirements to regulate

and control their location, site, design quality of materials, construction, use, occupancy, and

maintenance. In addition, the provisions of ASCE 41-13 and the NSCP 2015 7th Edition were

also carefully considered in their previous structural analysis.

TECHNOLOGICAL

To deliver a highly reliable structural design that suits the requirements, needs and

wants of the clients, the company uses the latest technology and design software in the field

of structural engineering. The company also utilizes design tools that suffice the requisites of

the existing and latest building codes.

ENVIRONMENTAL

 FCE’s designs for each building consists automatically a proposed trash

segregation bins that is useful for an easier way of disposing waste materials and it

can somehow help our environment.

 As a devout advocate of sustainability, FCE building design always have a

common denominator. Aside from providing functionality to people, it has also a

lower impact on the environment. Likewise, the company wants it to be beneficial to

21
 the entire community. With this advocacy, the company lessen the use of water, raw

materials and energy. More so, it reduces emissions, waste, and pollution.

COMPETITORS

FCE PRIMARY COMPETITORS

1. VLGV & ASSOCIATES INCORPORATED

2. QUADSTRUCT INC.

3. MACRO CONSULTING STRUCTURAL ENGINEERS COMPANY

4. AMH PHILIPPINES, INC

5. ESCA INCORPORATED

6. SMEC PHILIPPINES, INC.

7. VVR ENGINEERING DESIGN SERVICES

8. TCGI ENGINEERS

9. R.B. SANCHEZ CONSULTING ENGINEERS

10. CROWN SYSTEMS LTD. CO.

Table 3. FCE’s list of primary competitors

4.2 INTERNAL ENVIRONMENT

Internal analysis is being undergone to be able to examine the organization's

competency, resources and competitive viability in the market place. Likewise, this also

allows us to identify the strengths and weaknesses of the organization. This knowledge then

aids the strategic decision-making of management while they carry out the strategy

formulation and execution process.

22
MANAGEMENT/ORGANIZATION

FCE has a democratic style of management. The management is the one who makes

the final decision but they encourage their employees to share their ideas and opinions. The

company communicates and informs their employees with all related official business matters

through the use of memo.

HUMAN RESOURCES

The owner of the company treats the HR as the main asset of the company in the

Admin Department as it wants a high quality of workforce by maintaining a high

qualification when it comes to the IQ of an applicant. Though it will slow down the process

of fulfilling vital department such as Bidding, it is important to get a high quality of

workforce because bidding department shouldn't cause a failure when it comes to the

expectation of the company in the quantity of its clients

ORGANIZATIONAL CHART

PRINCIPAL STRUCTURAL DESIGNER

LEAD ENGINEER I EXECUTIVE AND TECHNICAL ASSISTANT

LIAISON

QUALITY ASSURANCE/ QUALITY CENTRAL LEAD PROJECT SUPERVISOR LEAD

DOCUMENT CONTROLLER STRUCTURAL ENGINEER STRUCTURAL ENGINEER QUALITY SUPERVISOR

STRUCTURAL CAD/ BIM DETAILER STRUCTURAL CAD/ BIM DETAILER

Figure 2: Technical Group Organizational Chart of FCE

23
 The above organizational chart is not updated, there are employees who have already

resigned from the company and still included on it. Below are the existing position in FCE,

some of them are vacant due to high turnover rate.

JOB DESCRIPTION

1. Systems and Operations Manager/Partner

 They are responsible for the safe and efficient operation of FCE. The systems

operations manager's role is vital for the company as it makes sure that all processes are

working efficiently and without any delay. The systems operations manager also works

with human resource and determines employee skills and provide suggestions and

requests for capable people to handle specific and specialized roles under the systems

operations department.

2. Managing Partner/Principal Engineer

 Handles the overall operations and business development of FCE. He initiates

further development on the firm’s quality standard, technical development of their

employees and processes, documentation and control, efficient project execution, cost

and value engineering, client satisfaction management.

3. Executive Assistant

 Provides clerical support to the manager. In charge on reading and analyzing

incoming memos, submissions and distributing them as need. Likewise, she is

responsible for managing the schedules and communications of company’s executives.

4. Business Development Officer

 Head of the bidding department. He is responsible in communicating and

negotiating with their clients

24
5. Business Development Associate

 responsible in conducting market research, develop strategies and assist the

officer in building relationship with their clients

6. Bidding Officer I
They are the on who’s creating and overseeing the
7. Bidding Officer II
bidding process.

8. HR Specialist

 Preparing or updating employment records related to hiring, transferring,

promoting, and terminating;

 Explaining human resources policies, procedures, laws, and standards to new

and existing employees;

 Ensuring new hire paperwork is completed and processed;

 Informing job applicants of job duties, responsibilities, benefits, schedules,

working conditions, promotion opportunities, etc.;

 Addressing any employment relations issues, such as work complaints and

harassment allegations;

 Processing all personnel action forms and ensuring proper approval; and

 Overseeing hiring process, which includes coordinating job posts, reviewing

resumes, and performing reference checks

9. Recruitment Assistant

 Its responsibilities include scheduling calls and interviews, maintaining

candidate database and handling paperwork.

25
10. Junior Finance Officer/Admin

 It provides financial/administrative management oversight of activities, to

include the budgeting/ forecasting/accounting and implementation of all services

required to financially and administratively support field office operations.

11. Admin Assistant

 Its duties revolve around managing and distributing information within an

office. This generally includes answering phones, taking memos and maintaining files.

Administrative assistants may also be in charge of sending and receiving

correspondence, as well as greeting clients and customers.

12. Liaison Officer/Driver

 They act as technical or subject matter experts for the person, a company or

organization they represent. Also, they support strategic partnerships by providing top-

quality advice, facilitating effective knowledge management, and providing technical

assistance to project planning, coordination, monitoring and reporting in any

collaboration.

13. Messenger

 Run general errands, such as but not limited to, bills payment, bank

transactions, pick up and/or deliver packages or documents; and

 Ensure proper documentation of activities by providing official receipts and

other documents required for liquidation.

14. Housekeeper

26
  The one who’s taking care of a building's general cleanliness to provide tidy

and sanitary amenities in the institution/company.

COMPENSATION

In the past few years, the company only offers provincial rate type of salary that is

why it has a high turnover rate of employees including the engineering department. The

company detect that that is why it impose the "Hire Few, Pay High" Policy when it comes to

recruiting and it is really effective because it decreases employees turn-over rates.

Further, FCE use a Daily Time Record (DTR) to monitor the attendance of their

employees. The salary of the employees are paid on a semimonthly basis, usually on the 10 th

and 25th of the month.

MARKETING

The Market Status/Position of the company relies on the bidding department. That's

the one of the reasons why the company impose a high quality of qualification when it comes

to the IQ of an applicant. Bidding needs skills and good experience to captivate clients

because in the past few years, bidding and business development is a difficult part of the

company, some employees in the previous years’ fails to offer more client for the company.

TARGET MARKET

FCE target markets are the following:

o Top Developers (High Rise Buildings)

o Governments (High Rise Buildings)

o Businessman who wants to expand or enhance their company or

looking for office space

27
 o Home hunters who are looking for cost-effective residential design

SERVICES/PRODUCTS

 Primary Service is structural engineering. Depending on the project requirements,

specialized field is classified in a more detailed discipline namely:

FCE primary service scope is structural engineering. Our team of competent engineers utilizes only
the latest in technology, building codes and software available. We aim to provide you the most cost-
effective yet reliable designs. Depending on the project requirements, this specialized field is
classified in a more detailed discipline namely:

 Design and Analysis of Structure

 Schematic Planning of Structural Framing Systems
 Seismic Design and Analysis
 Field Investigation and Engineering Data Collection (Structural Forensics)
 Design Consultation and Expert Advice
 Opinions of Probable Cost of Structural Design
 Preparation of Preliminary and Detailed Engineering Design Drawings, Specific, and
Construction bidding documents.

Figure 3: Classification Services offered by FCE

PRICES

The company offers lower price to their clients and takes the opportunity to bargain

when they enter the bidding in Philgeps. Since the company has its own construction firm,

they can still adjust the price to win a project.

PLACE

The company is located at 2FL L22 B8, A. Valentin St., Samonte Park, San Roque

Cavite.

28
PROMOTION

Both traditional and digital approaches are used by FCE to promote and showcase its

products and services. The main platform used is Social Media i.e. Facebook. This is where

they share the company's’ milestones, post their previous projects and services and their

future endeavors.

INTERNAL ASSESSMENT

The aforementioned internal factors were assessed by the researchers to determine

their impact into the organization.

Table 4. Key Internal Forces

KEY INTERNAL FORCES POSITIVE NEGATIVE

MANAGEMENT FCE has been in the The company failed to

/ industry for 12 years. With sustain some of their
ORGANIZATION
these years of experience, employees due to

the company has already unattractive

established its position in

benefits package (rare
the industry and gained the
promotion) and pressure
trust of its clients.
on their task.
ORGANIZATIONAL As cited in their business
CULTURE
philosophy the company

believes in the following

core values: Passion to

build. Pursuit to excellence,

Integrity and diligence.

29
HUMAN RESOURCES Due to incomplete

personnel on its bidding

department, the company

failed to participate with

other biddings and lost the

chance to acquire new

projects.

COMPETITORS There are a number of

highly experienced

engineers not only in

Cavite but also elsewhere,

which can be hired by

some architect as freelance

engineer, which then,

lessen the opportunity of

structural design firm to

increase their clients.

MARKETING The company has a website It is not updated so the

that is accessible for clientele company failed to utilize

and marketing purposes. This its full potential

also adds up to the credibility

of the organization

PRODUCTS/SERVICES Slow, medium to high rise

project along with

30
 international projects

partnered with prominent

developers like Megaworld,

Ayala, Moldex Realty,

Filinvest etc.

FINANCIAL Please refer below

RESEARCH AND Continuous exploring of

DEVELOPMENT
technical and technological

advancements through their

“Differential advantage

“scheme”

MANAGEMENT INFORMATION IS
INFORMATION SYSTEM
POWER – this is the hashtag

of the company where the

company signifies

preparation and risk resilient

strategies in mitigating and

reducing the risk of the

possible catastrophe named

“The Big One”

SOCIAL RESPONSIBILITY Their advocacy for structural

integrity, strict adherence to

construction policies and

building codes, and their

31
 continuous synergy in

preparation for the “BIG

One” makes the company

social awareness at an

extreme level.

FINANCIAL

The pandemic has hit a lot of business resulting to damages and some decided to

liquidate and cease to operate. FCE achieved good results in its overall financial performance

for 2020 given the effect of the pandemic. By the end of 2020, total assets peaked at ₱2.07

million, total service income reached ₱7.2 million and total net income hit ₱1.22 million.

FCE’ 2020 performance was driven by the operations on the last stretch of the year. During

the start to the 2nd quarter of year 2020, almost all its operations stopped since the projects

were mandated to standby since they were considered non-essentials at the start of the

pandemic health protocols, so projects were hard to receive at the given time. We could also

observe that service income decreased at approximately ₱5 million resulting to significant

decrease of the equity turnover.

In terms solvency, total debt to equity ratio has improved and decrease to 23% from a

leveraged percentage (186%) in 2019 that could offer opportunities if the company wanted to

use credit as additional funds. The company is liquid, current and acid-test shows significant

increase to 2.93:1 ratio in 2020. The working capital has also improved from a negative

balance reaching a ₱0.75 million mark.

Table 5. Comprehensive Income

2020 2019

32
 SERVICE INCOME 7,205,824.00 12,269,008.00

COST OF SERVICES 4,718,921.00 8,395,478.00

GROSS INCOME 2,486,903.00 3,873,530.00

OPERATING EXPENSES 1,223,765.00 2,030,750.00

NET INCOME 1,263,138.00 1,842,780.00

Table 6. Balance Sheet

2020 2019

CURRENT ASSETS 1,153,395.00 172,336.00

NON- CURRENT ASSETS 917,319.00 1,011,890.00

TOTAL ASSETS 2,070,714.00 1,184,226.00

CURRENT LIABILITIES 393,436.00 770,086.00

TOTAL LIABILITIES 393,436.00 770,086.00

PARTNER'S EQUITY 1,677,278.00 414,140.00

TOTAL LIABILITIES & EQUITY 2,070,714.00 1,184,226.00

Table 7. Financial Ratios

2020 2019
DEBT TO EQUITY
0.23 1.86
CURRENT RATIO
2.93 0.22
ACID TEST RATIO
2.93 0.22
EQUITY TURNOVER RATIO
4.30 29.63
WORKING CAPITAL TURNOVER
RATIO 9.48 20.53
33
CORPORATE SOCIAL RESPONSIBILITY (CSR)

1. Environmental– FCE consider the environment when it comes to choosing an area to

build structures as well as not to harm it in every project they execute.

2. Society- FCE assured their clients that they deliver high quality of service to reduce

the threat of natural hazards like earthquakes and typhoons.

3. Economy- FCE always secure permits and pay taxes with every projects or bidding

that they undertake which helps the province of Cavite and the country’s economy.

4. Legal/Political –The Company is always compliant with the city regulation and other

code and standards locally and internationally in providing structural engineering

design to its clients.

STRENGTHS AND WEAKNESS

Strength

Liquidity - the company is showing proper management of receivables, there are no

existing aged receivables, lesser risk of uncollectibility.

Solvency - the company could obtain additional funds if needed for expansion via bank

loan or other credit.

Weakness

Equity turnover ratio - the company shown decrease in maximizing owner's wealth partly

because of the pandemic.

Fixed asset turnover ratio - the fixed assets aren't maximized or not being used well to

generate sales. A high ratio indicates that a company efficiently uses its fixed assets to

generate sales, whereas a low ratio indicates that the firm does not efficiently use its fixed

34
assets to generate sales.

MICHAEL PORTER’S FIVE FORCES

I. COMPETITION IN THE INDUSTRY

When it comes to this factor, the company is in the big risk, there are too many

well experienced engineers nowadays specially those who study abroad that can turn the

table favorable to them. Most of the company’s competitors also offer the same quality of

services since projects can be done for a short period of time.

As more competitor rises, the more the chance the company will have difficulties

in getting clients as there’s a high possibility that its competitors also have the abilities to

undercut the company.

II. POTENTIAL OF NEW ENTRANTS INTO AN INDUSTRY

New entrants in structural design and consulting firm only needs less time and

money to enter the industry and it’s not impossible that they can become effective

competitor, and if that happen the more the FCE position could be significantly

weakened.

III. POWER OF SUPPLIES

Having own Construction Company means a great advantage for the firm to

undercut its competitors. There may be limited construction companies if we compare its

ratio to Structural Design and Consulting Firms but it works different from the usual

relationship between the supplier and client as shown below:

35
 USUAL SUPPLIER AND STRUCTURAL DESIGN FIRM AND
CLIENT RELATION: CONSTRUCTION FIRM RELATIONSHIP:
The more the supplier the more
 The more the construction firm in the
convenient for the client to reduce its products cost.
industry, doesn’t mean the higher the

chance that the Structural Design Firm can

lower the price of its services as there are

The less the supplier, the more it will be difficult for the
client to reduce the cost of itstoo many projects available in the industry.

 The less the Construction firm in the

industry doesn’t mean they have the upper

hand in controlling the price with its client

because most of the construction firms are

flexible to handle simultaneous projects.

IV. POWER OF CUSTOMERS

The company already offer low price for each project to undercut its competitors.

In this industry, the clients really have the power to control the price over its potential

vendors, as most of the vendor can easily reach a client even in any location and that

makes the competition more difficult for each Structural Design Firms.

V. THREAT OF SUBSTITUTES

Freelancers are potential substitutes for Structural Design Firms as Architects and

Construction Companies can hire freelance engineers in this modern era. The existence of

internet makes it more convenient for Structural Design Firm’s Clients to get an engineer

to execute a project easily without needing Structural Design Firm as it will lower the cost

of their services.

36
V. STRATEGY FORMULATION

Strategies represent incremental steps that move the company from its present

position to a desired future position relative to its current situation. Hence, it is imperative

that a closer look at the current strengths, weaknesses, opportunities and threats that the

company has and faces to enable to find the most suited strategy to address its current and

urgent needs.

The group employed the initial stage of strategy formulation to be able to decide on

the best strategies suitable for the company under study.

STAGE 1: THE INPUT STAGE

a. EXTERNAL FACTOR EVALUATION (EFE) MATRIX

The External Factor Evaluation (EFE) Matrix is a strategic analysis tool being used by

different companies to evaluate their firm’s external environment. It is being used to help

organizations to realize its current industry opportunities and respond to the potential

impactful effects of the industry’s threats.

EXTERNAL FACTOR MATRIX

EFE MATRIX
Weighted
KEY EXTERNAL FACTORS Weight Rating Score

OPPORTUNITIES
1 Increase in demand for countryside developments. 0.10 3 0.30
2 Shift to cheaper priced structural designs due to fit lower customer budget. 0.05 2 0.10
3 Ability to hire additional manpower at a lower rate. 0.05 2 0.10
4 Increase market presence or reach via social media. 0.10 4 0.40
5 Access to updates and developments in the industry. 0.10 3 0.30
6 Improve client handling or servicing via online transactions. 0.10 3 0.30

THREATS
1 Decrease in demand due to pandemic scenario. 0.12 3 0.36
2 Project delays caused by ECQ or government mandates. 0.15 4 0.60
3 Increase of free lance competitors due to lay -offs made by some firms. 0.08 3 0.24
4 Employment offers from competitors. 0.10 3 0.30
5 More attractive offers from competitors. 0.05 2 0.10

TOTAL 1.00 3.10

Figure 4. EFE MATRIX

37
Note the ratings are as follows: 1-Poor, 2-Average, 3-Above Average, 4-Superior. The average score is at 2.5. A total weighted score of 4.0

indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry.

Assessment:

The company has a weighted score of 3.10 which means the firm’s strategies effectively take

advantage of existing opportunities and minimize the potential threats though as it has not yet

attained its maximum capacity hence, it still needs improvements.

b. INTERNAL FACTOR EVALUATION (IFE) MATRIX

IFE MATRIX
Weighted
KEY INTERNAL FACTORS Weight Rating Score

STRENGTHS
1 Company's existence of 12 yrs in the industry. 0.05 4 0.20
2 Management's expertise in the industry. 0.05 4 0.20
3 Price Competitiveness due to tie-up with a construction firm. 0.05 4 0.20
4 Strong client base source of repeat businesses and referrals. 0.05 3 0.15
5 Company website to increase market reach and presence. 0.05 3 0.15
6 Product Competitiveness 0.10 4 0.40
7 Updated MIS to address changing nees and demands of the market. 0.05 3 0.15
8 Company's reputation based on existing remakable projects. 0.05 4 0.20
9 Organizational culture of excellence and integrity. 0.05 4 0.20
10 Company is both liquid and solvent. 0.05 4 0.20

WEAKNESSES
1.0 Inadequate Staff/ Manpower Shortage 0.05 1.00 0.05
2.0 Less Bidding Participation on New Projects 0.05 1.00 0.05
3.0 High Employee Turnover Rate 0.05 1.00 0.05
4.0 Low Compensation and Benefits 0.05 1.00 0.05
5.0 Delayed Salary Pay-outs 0.05 1.00 0.05
6.0 Decline in sales and profitability. 0.10 1.00 0.10
7.0 Low fixed asset turnover ratio. 0.05 2.00 0.10
8.0 Low equity turnover ratio. 0.05 2.00 0.10

TOTAL 1.00 2.60

Figure 5. IFE MATRIX

Note the ratings are as follows: 1-Major Weakness, 2-Minor Weakness, 3-Minor Strength, 4-Major Strength. The average score is at 2.5. Total weighted scores well below

2.5 characterize organizations that are weak internally, whereas scores significantly above 2.5 indicate a strong internal position.

38
Assessment:

The company has a weighted score of 2.60. Though it is above the weighted average of 2.5,

it is still considered internally weak as the difference is marginal. Though, the strengths of

the company have relatively smoothened out the identified weaknesses, it is still weak as it

does not take into consideration the high employee turnover rate nor the loss of business

opportunities due to inadequate manpower to participate in biddings which is the ultimate

source of business of the company.

COMPETITIVE PROFILE MATRIX

Figure 6. CPM Matrix

CPM MATRIX
Company VLGB &ASSOCIATES QUADSTRUCT INC.
CRITICAL SUCCESS FACTORS Weight Rating Score Rating Score Rating Score
Management 0.10 3 0.30 4 0.40 3 0.30
Quality of Projects 0.15 4 0.60 4 0.60 3 0.45
Price Competitiveness 0.10 4 0.40 2 0.20 4 0.40
Developer's Affilliation 0.10 3 0.30 3 0.30 3 0.30
Customer Loyalty 0.05 4 0.20 4 0.20 3 0.15
Reputation in the Industry 0.05 4 0.20 4 0.20 3 0.15
Manpower 0.15 2 0.30 4 0.60 3 0.45
Financial Position 0.10 2 0.20 4 0.40 3 0.30
Product Competitiveness 0.10 4 0.40 4 0.40 3 0.30
Market Share 0.10 3 0.30 3 0.30 2 0.20

TOTAL 1.00 3.20 3.60 3.00

Note the ratings values are as follows: 1 = major weakness, 2 = minor weakness, 3 = minor strength, 4 = major strength. The average

weighted score is 2.50.

Assessment:
Results show that the company ranked 2nd at 3.20. However, in a Competitive Profile

Matrix, it does not follow that the one is better than the other. Numbers reveal the relative

strengths of firms in comparison with the others. The aim is not to arrive at a single number,

but rather to assimilate and evaluate information in a meaningful way that aids in decision

making. The interpretation of the data and its usage to improve the current condition of the

company relative to the industry standards is more vital.

39
 STAGE 2: THE MATCHING STAGE
The first strategy that the group will be using will be the SWOT/TOWS Matrix using
the factors that were identified in the initial stage using the three matrixes, EFE Matrix, IEF
Matrix and CP Matrix.
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important

matching tool that helps managers develop four types of strategies: SO (strengths-

opportunities) Strategies, WO (weaknesses-opportunities) Strategies, ST (strengths-threats)

Strategies, and WT (weaknesses-threats) Strategies.

Below are matched taking into consideration the financial capabilities of the company in

taking action to address identified strategies to improve its current state. The financial statements

show that the company is both liquid and solvent hence, it has the capacity to expand or to invest on

the strategies or actions cited below.

OPPORTUNITIE SO WO
S STRATEGIES STRATEGIES
Increase in demand for Increase market presence and visibility Invest in IT services for marketing
countryside developments. through social media and keeping all campaigns and online transactions.
channels updated.

Shift to cheaper priced structural The company’s current pricing and payment Increase salary range of employees
designs due to fit lower scheme should be advertised so more and improve their benefits for
customer budget. clients will avail of its services. employee
retention and to attract quality
recruits.
Ability to hire additional Review manpower requirement and Hire additional business managers to
manpower at a lower increase the no. of key personnel vital to be able to participate in more biddings
rate. the to generate more contracts.
company’s business generation.
Access to updates and Use available resources to take advantage
developments in the industry. or to be on track with the competition and
changing demands in the industry.

Improved client handling or Invest in e-commerce, online payment

servicing via online transactions. system and CRMs to ensure customer
service satisfaction and faster processing of
transactions as clients due to pandemic
are restricted to do face to face meet-ups.

THREATS ST WT
STRATEGIES STRATEGIES
Decrease in demand due to Capitalize on getting repeat business or Increase the budget for salaries,
pandemic scenario. referrals from existing client base. benefits and incentives.

Be proactive in knowing the projects Allocate funds for marketing

of affiliated developers to gain campaigns and promotional offers.
priority in soliciting business from
them.
Project delays caused by ECQ Address the delays and avoid complaints by Design a system which will constantly
or government mandates. keeping the client’s updated with the monitors project status and will update
project status and developments. the clients regularly.

Increase of freelance Design a package offer to clients which

competitors due to lay-offs cannot be matched by freelance
made by some competitors.
firms.
Employment offers from Create a more attractive compensation
competitors. and benefit package for all employees.

More attractive offers Employ new marketing techniques

from competitors. and promotional tools to enhance
customer loyalty and patronage.

40
 THE BALANCED SCORECARD FOR FAL CONSULTANCY ENGINEER
ADDRESS

STRATEGIC KEY PERFORMANCE

OBJECTIVES INDICATORS Programs/Action Time Table Person Responsible
Plans

Come up with Immediate HR Department

Decrease cost of
Incentive like September 01,
services percentage Zero idle time for
employees of the 2021
as to service income employees
moth and perfect
by 5%
attendance

Create a plan/ Monthly Accounting

Increase equity Decrease partner’s capital
schedule of partner’s department
turnover ratio balances
withdrawal

Proper capital Every purchase of Accounting

Checking if the assets
Increase fixed asset budgeting before fixed assets department
acquired are being utilized
turnover ratio purchase of additional
properly
fixed assets

Add short term Prepare investment Monthly Accounting

investments to utilize Diversify income portfolio proposals department
available cash to financial institutions
balance

Active clientele data base. Religiously updating Every two weeks Sales/marketing
Increase number of There should be another of the company department
clients by 5% project before or right after website for updates
every project completion and new trends

Feedback solicitation Before or during Engineering

Zero client right after every the turnover date of department
No Dissatisfies client
withdrawal project from the the project /Marketing
client department

Joint meeting with During contract Sales and Marketing/

client, the business signing Engineering
Drafted contract is development officer department
mutually understood and and the engineering
respect by both parties team prior to
commencement of
project

Provide a referral Right after the Business

Intensify 1 referral Client should have at; east
incentive to clients completion of the Development officer
one client program one referral
projection

100% compliance on Availability of Engineering At all time

INTERNA

PROCESS

No legal disputes against department

legal structural Preventive and
clients
ES
L

standards and precautionary

national and

41
international building contingencies s
codes

Use checklist for easy Before project

Proper coordination of
monitoring commence
Business development and
engineering team

100% All six-element s of the Conduct evaluation as Sales/ Marketing Right after every
Implementation of differential advantage are soon as the project is department project
Differential taken into consideration for turnover
advantage all clients

100% registered Facilitate submission HR Manager Once very year

technical experts like Annual review of and of documents
engineers and units among engineers and
architects, safety architect
officer

Their technical
expertise should be
aligned with their
position Intact and
systematic
communication flow

100% awareness and Conduct s joint Engineering As needed

implementation of meeting prior to department
health and safety mobilization
protocols based on
occupational safety
standards as well as
AITF standards

42
 Table 8. SPATRES MATRIX, Market Penetration: Objective 1
MARKET PENETRATION

OBECTIVE 1 An increase of 10% for FCE Clients

STRATEGY PROGRAM ACTIVITY TIME PERSON/ RESOURCE

FRAME DEPARTMENT IN REQUIREMENT
CHARGE
Intensify social "Do it with a. Rank the most Monthly Sales/marketing P5,000 - 15,000
media presence FCE". successful client's department monthly
project.
b. Prepare a 2 - 3-
minute video
presentation of the
successful projects.
c. Pay for social
media ads to
increase awareness.

Improve Active "Got a minute? a. Prepare for a Weekly Sales/marketing P10,000 - 25,000
Clientele Data - Free general-purpose department
Base consultation" project presentation.
b. Client may ask
for existing actual
past client’s
projects.
c. Question and
answer regarding
the project or
possible
negotiations.

Target Zero "Earn from a This can be Before or Engineering P2,000 per project
client withdrawal Feedback discussed during the during the department
form". initial signing of the turnover date /Marketing
contract. of the project department
a. Prepare for 3 level
Feedback Forms
(Initial Presentation,
Interim Presentation
and Final
Presentation)
. Presentation of the
final structural
design (blue print)
c. Ask for the client
after the
presentation for
their feedbacks.

43
Intensify referral "Refer A Friend a. Prepare for the Right after Business P30,000 per project
one client and Get Some referral form the Development referral
program Cash To showing the completion officer
Spend". possible incentives of the
that client can projection
obtain.
b. Ask for referral
from current and
past clients.
c. Communicate
with the client and
create a schedule.
d. Proceed with the
scheduled
presentation of
proposal to the
referred client.

Table 9. SPATRES MATRIX, Market Penetration: Objective 2

MARKET PENETRATION

OBECTIVE 2 To increase profitability, net income by 10%

STRATEGY PROGRAM ACTIVITY TIME PERSON/ RESOURCE

FRAME DEPARTMENT IN REQUIREMENT
CHARGE
Decrease cost Employee a. Prepare matrix that 1- Sep-21 HR Department P100,000 - 150,000
of services Productivity can be used for
percentage as to Incentive evaluation.
service income b. Do random checks
by 5% of the employee’s
c. Evaluation of the
overall project costs.
Increase fixed Capital a. Check if the assets Every Accounting P5,000 - 10,000
asset turnover Budgeting acquired are being purchase department every purchase
ratio utilized properly. of fixed
b. Prepare a capital assets
budgeting showing the
outflows and inflows
of cash with the time
value of money.
c. Presentation to the
managers of the
proposed capital asset
acquisition to obtain
final and agreed
decision.
Add short term Investment a. Prepare for a 5 main Monthly Accounting P200,000 - 500,000
investments to Proposals investment options, to department
utilize available diversify income
cash balance portfolio to financial
institutions
44
 b. Managers and
Partners do the
ranking of the most
desired investment.
c. Check if the funds
are available and will
not be restricted for
future use.
d. Invest to the chosen
investment.

Table 10. SPATRES MATRIX, Product Development: Objective 1

Product Development

OBECTIVE 1 To offer additional services for current and existing clients FCE Clients

STRATEGY PROGRAM ACTIVITY TIME PERSON/ RESOURCE

FRAME DEPARTMENT REQUIREMENT
IN CHARGE

Increase Joint a. Look for Every Engineering P10,000 - 20,000

services being Venture prospect related or project department
offered affiliated /Marketing
construction firms. department
b. Evaluate the
prospects that could give
partnership the best
competitive position by
looking at their past
projects.
Increase Hiring a. Assess the fit Last HR Department P30,000 - 60,000
awareness on applicants for the position Quarter of
how for the professionals. 2021
construction b. Look for an agency
business works that could hire for the
construction workers.
c. Start planning for the
planned expansion

Table 11. SPATRES MATRIX, Product Development: Objective 2

Product Development

OBECTIVE 2 To offer other service packages to the clients.

STRATEGY PROGRAM ACTIVITY TIME PERSON/ RESOURCE

FRAME DEPARTMENT REQUIREMENT
IN CHARGE

45
Increase Discounted a. Create individual Last Sales/marketing P5,000 - 10,000 per
customer options Package packages Quarter of department project
b. Use the current 2021
pricing for individual
packages and
discounted pricing for
combination of
packages in accordance
with the construction
firm

To have Direct a. Prepare a list of Every Business P5,000 - 10,000 per

additional Referral related construction project Development project
income firms’ officer
b. Propose a referral
incentive for each
client.
c. Prepare necessary
agreements/documents
to be signed.

EVALUATION AND CONTROL

BUSINESS MODEL CANVAS
“The Business Model Canvas is a strategic management template used for developing new

business models and documenting existing ones. It offers a visual chart with elements

describing a firm's or product's value proposition, infrastructure, customers, and finances,

assisting businesses to align their activities by illustrating potential trade-offs.” – Wikipedia

The definition is provided above but it is equally important to know why this business model

is important. The business model canvas is being used by companies or organization to gain a

better understanding of their business. It helps them communicate to clients because they

need to do business with them. It helps the company to focus on what it does and how it will

continue doing it successfully by setting parameters to each nine components of the business

model.

The graphic and narrative framework of Fal Consulting Engineers’(FCE) as represented by

the nine building blocks is shown below.

46
 Figure 7. Business Model Canvas

BUSINESS MODEL CANVAS

Nine (9) Building Blocks

1. Key Partners

The company has various partners in the operations of the business. It has a tie-up

with a construction company, employees who provide their knowledge and services,

affiliate developers, suppliers and of course, its customers.

2. Key Activities

The company is a service provider for technical viable solutions to structural

engineering needs, i.e. structural designs and construction management system.

3. Key Resources

Fal Consulting Engineers’(FCE) key resource include its management expertise in the

industry as it has a tie-up with its partner construction company and its liquid and

solvent financial state which allows the company to adapt and address

47
 the changing needs of the market or the industry and to give lenient payment terms as

part of its business strategy.

4. Value Propositions

To provide quality solutions that work in the field of engineering design and

construction which merit technical excellence with timely deliverables to sustain a

mutually beneficial and lasting relationships with clients.

5. Customer Segments

The company caters to clients with projects ranging high rise buildings of private firms

and government agencies, to medium-rise buildings of medium sized entities and low-

rise buildings of individual clients.

6. Channels

The company employs two channels of communication in reaching out to their target

clientele. First channel is through participation in project bidding via Philgeps where

they use their strength of having lower priced services/products. Second is through

social media where company do client prospecting online and offer their services and

using the same to showcase their various projects.

7. Customer Relationships

The company has been in existence for more than 12 years which is reflective of their

strong relationship with their clients. The company gained a tremendous reputation

from the projects they had on previous years hence, they can easily gain the trust of

their potential clients. This coupled with customer friendly payment terms and

constant feedback mechanism has enable the company to develop a strong client base.

8. Cost Structure

48
 The main cost of the company's project goes to fixed cost, salaries and wages in

particular. Around P600,000-P900,000 of the company's budget goes to the salaries of

the employees specially the engineering department because they are the main asset of

the company. The owner uses the term "direct cost" to describe the engineering

department. The company can offer a lower price for each product as they only desire

for enough profit for a single project.

9. Revenue Structure

The company's main income depends on the type of project and the numbers of clients

that the business development department gets on a monthly basis. The company uses

excel and Google drive to record the transactions. The clients can pay in three terms, 2

for mobility and 1 for the final payment. The clients commonly pay via cheques.

VI. CONCLUSION

THE FCE NEW FRAME OF MIND:

While there are so many strategies formulated in this particular study for the FCE, we

would like to emphasize that no matter how many, and how good the strategies are of a

competent leaders may present, it is the effectivity and the ultimate realization of the targets

and objectives of the organization lies on their leaders to carry out and implement these

strategies to maximize their potentials. Because of the dynamic state of the engineering

services, changes are inevitable. The company must be resilient in terms of adapting to these

changes especially on their products and services. Product development, customer focus and

structural integrity are the core values to cherish and lastly, the company’s growth and

sustainability in the market is another thing to consider to keep the game rolling in in the

structural engineering services industry.

49
VII. DISCLAIMER

Any articles, templates, or information provided by Smartsheet on the website are for

reference only. While we strive to keep the information up to date and correct, we make no

representations or warranties of any kind, express or implied, about the completeness,

accuracy, reliability, suitability, or availability with respect to the website or the information,

articles, templates, or related graphics contained on the website. Any reliance you place on

such information is therefore strictly at your own risk.

50
VI. REFERENCES
Websites
Jobstreet.com falhttps://www.jobstreet.com.ph/en/companies/708710-fal-
consulting-engineers
https://www.findglocal.com/PH/Las-Pi%C3%B1as/135780329802049/fal-
Consulting-Engineers
https://www.apollo.io/companies/Fal-Consulting-
Engineers/5b141b9aa6da98dcf0276c66?chart=count
https://strategicmanagementinsight.com/tools/mission-statement.html
https://www.strategy-formulation.24xls.com/es127
LawPhil, June 16, 1956 https://www.lawphil.net/statutes/repacts/ra1956/ra_1582_1956.html

51