Company: Tanduay
Part I Introduction
Tanduay has over a hundred years of history. It all began in 1854 when Don Joaquin Elizalde, together with his uncle, Juan Bautista Yrissary, and the Manila-based Spanish business man and financier Joaquin Ynchausti established a trading partnership, which acquired the Manila Steamship Company. This alliance was named the Ynchausti Y Cia. Their main line of business was ship chandlery and later on ventured into abaca making. The steamship they owned plied the Laguna Lake to Manila route. Later, Valentin Teus, a cousin of the Elizldes, joined the partnership. Teus acquired a distillery in Hagonoy, Bulacan ffrom Elias Menchantorre and merged it with Yncahusti Y Cia. Six years later, a rectifying plant of this distillery was constructed I San Miguel District, Manila. This small distillery was transformed by four successive generations of the Elizaldes into modern Tanduay Distillery, considered one of the largest in the Philippines.
The Elizalde Family invested and developed agricultural properties in Western Visayas, particular in Panay and Negros Occidental, wherein they grew sugarcane. These plantations become a vital necessity in the production of sugar, the most important raw material in making rhum. Ynchausti Y Cia, and the company was renamed Elizalde and Co. Inc. This paved the way for further diversification of its business interests. Slowly but surely Tanduay was transformed in to a successful industry, producing quality rhum and other distilled spirits for both the domestic and international markets.
In May 10, 1988, twin Ace Holding Corp., owned and managed by the Lucio Tan Groups of Companies, acquired Tanduay Distillery from the Elizalde Family. The new management launched a plant modernization and expansion program that increased the distillery’s production capacity by almost 50 times.
On July 8, 1999, Asian Pacific Equity Corporation, a company listed in the Philippines Stock Exchange, also owned and controlled by the Lucio Tan Group, acquired 100% ownership of Twin Ace Holdings via a share swap with Twin Ace’s Holdings changed its corporate name to Tanduay Distillery, Inc. and its authorized capital increased from 1 million to 2 billion at a par value of 1.00 per share.
Company’s products are rhums (Tanduay Rhum 1854, Tanduay Primiero 8 Años, Tanduay E.S.Q., Tanduay 5 Years, Tanduay 5 Years, Tanduay Rhum 65, Tanduay White, Tanduay Superior Dark Rhum, Tanduay Centennial Dark Rhum, T5 Light T5 Extra Strong Rhum and Boracay Rum) which their main product and others like gins (Gin Kapitan and London Dry Gin), vodka (Cossack Vodka and Cossack Blue), brandy (Barcelona) and whiskey (Embassy Whiskey). These products go from such process that gives each a different taste and aroma and this process is not easy to make because it takes a lot of years to produce a high quality products, that’s why TDY is famous in liquors that can surely satisfy customers. Their difference to other competitor is they use high quality raw materials in their plantations.
The Elizalde Family invested and developed agricultural properties in Western Visayas, particular in Panay and Negros Occidental, wherein they grew sugarcane. These plantations become a vital necessity in the production of sugar, the most important raw material in making rhum. Ynchausti Y Cia, and the company was renamed Elizalde and Co. Inc. This paved the way for further diversification of its business interests. Slowly but surely Tanduay was transformed in to a successful industry, producing quality rhum and other distilled spirits for both the domestic and international markets.
In May 10, 1988, twin Ace Holding Corp., owned and managed by the Lucio Tan Groups of Companies, acquired Tanduay Distillery from the Elizalde Family. The new management launched a plant modernization and expansion program that increased the distillery’s production capacity by almost 50 times.
On July 8, 1999, Asian Pacific Equity Corporation, a company listed in the Philippines Stock Exchange, also owned and controlled by the Lucio Tan Group, acquired 100% ownership of Twin Ace Holdings via a share swap with Twin Ace’s Holdings changed its corporate name to Tanduay Distillery, Inc. and its authorized capital increased from 1 million to 2 billion at a par value of 1.00 per share.
Company’s products are rhums (Tanduay Rhum 1854, Tanduay Primiero 8 Años, Tanduay E.S.Q., Tanduay 5 Years, Tanduay 5 Years, Tanduay Rhum 65, Tanduay White, Tanduay Superior Dark Rhum, Tanduay Centennial Dark Rhum, T5 Light T5 Extra Strong Rhum and Boracay Rum) which their main product and others like gins (Gin Kapitan and London Dry Gin), vodka (Cossack Vodka and Cossack Blue), brandy (Barcelona) and whiskey (Embassy Whiskey). These products go from such process that gives each a different taste and aroma and this process is not easy to make because it takes a lot of years to produce a high quality products, that’s why TDY is famous in liquors that can surely satisfy customers. Their difference to other competitor is they use high quality raw materials in their plantations.
Part I Mission, Goals And Objectives
Mission: “One World, One Spirit”
It tells that in a world divided by oceans, diverse people come together to experience the rich spirits of Tanduay. They want to be a world class, fully diversified liquor company that is highly respected by its consumers and business partners. To provide consumers with products of excellent quality a affordable prices, supported by outstanding service around the world. And, to maintain a working culture of continuous improvement ad employee involvement globally.
Goals: “To Attain Total Customer’s Satisfaction”
“To Be World Class Rhum Maker”
“To Be World Class Filipino Company”
Those tell us that this company wants the full satisfaction of the customer their up to or their market, which they will be lead to a world class rhum maker which is a Filipino Company that provides excellent quality of liquors around the world, and also to have good relationships to its customers as well as its business partners.
Objectives: To be well known rhum maker all over the world
To guide by the corporate values to its goals
To be respected by the customers and business partners
To stand out the Filipino pride
Giving full customer’s satisfaction
Maintaining the working value
Maintaining a good relationship to its customers and business partners.
It tells that in a world divided by oceans, diverse people come together to experience the rich spirits of Tanduay. They want to be a world class, fully diversified liquor company that is highly respected by its consumers and business partners. To provide consumers with products of excellent quality a affordable prices, supported by outstanding service around the world. And, to maintain a working culture of continuous improvement ad employee involvement globally.
Goals: “To Attain Total Customer’s Satisfaction”
“To Be World Class Rhum Maker”
“To Be World Class Filipino Company”
Those tell us that this company wants the full satisfaction of the customer their up to or their market, which they will be lead to a world class rhum maker which is a Filipino Company that provides excellent quality of liquors around the world, and also to have good relationships to its customers as well as its business partners.
Objectives: To be well known rhum maker all over the world
To guide by the corporate values to its goals
To be respected by the customers and business partners
To stand out the Filipino pride
Giving full customer’s satisfaction
Maintaining the working value
Maintaining a good relationship to its customers and business partners.
Part I Industry Analysis
This industry analysis will aid in researching the industry in which Tanduay Distillery, Inc. will be located. This is the liquor industry. Determining how the company will compete in the industry. The liquor industry is affected by many trends in the general environment. Some of these trends include: cultural trends, and economic climate.
The current economic climate is desperate for boosting the economy of the country. Liquors Companies can create jobs for Filipinos. It will create jobs in manufacturing and distribution, but will also include many solid building trade jobs for electricians, plumbers, roofers, designers, and engineers.
Cultural trends play a large role because, as previously stated, companies and individuals are becoming increasingly concerned with the culture of Filipino’s when it comes to wine. Because of this, liquors and alcohols are seeing a surge in interest. Filipinos drinks liquors and alcohols when you celebrating something and they know that every day there is always a celebration.
Substitutes are a medium threat to the industry because of the least competitors. Consumers might choose this because of the culture in every celebration. As industry trends continue to affect consumers, such as “Beer feast,” it is likely that liquors will become increasingly popular.
The industry’s rivals consist of all companies that produce liquors. The threat of rivalry is somewhat medium. The number and balance of competitors is medium. Since this is a relatively old industry that is just beginning to boost the growth of industry. The fact that the industry is growing is another reason that rivalry is low. Therefore, there is room in the market for the new competitors.
Suppliers pose a medium threat to the liquor industry. Supplier concentration means that there are only a few suppliers to provide a product to a large number of buyers.
Buyers exert a somewhat strong force in the liquor industry. In this case the buyers are those who use and purchase some alcohol drinks. Consumers have the option of choosing what type or brand of alcohol they use at this time. The economy plays a role in buyer’s options. Current economic conditions are making it difficult for individual consumers, companies, and even banks to get large amounts of capital for the use of loans.
Key Competitors
The only competitors are San Miguel Corp., Emperador Distillers and Asia Brewery Inc.
The current economic climate is desperate for boosting the economy of the country. Liquors Companies can create jobs for Filipinos. It will create jobs in manufacturing and distribution, but will also include many solid building trade jobs for electricians, plumbers, roofers, designers, and engineers.
Cultural trends play a large role because, as previously stated, companies and individuals are becoming increasingly concerned with the culture of Filipino’s when it comes to wine. Because of this, liquors and alcohols are seeing a surge in interest. Filipinos drinks liquors and alcohols when you celebrating something and they know that every day there is always a celebration.
Substitutes are a medium threat to the industry because of the least competitors. Consumers might choose this because of the culture in every celebration. As industry trends continue to affect consumers, such as “Beer feast,” it is likely that liquors will become increasingly popular.
The industry’s rivals consist of all companies that produce liquors. The threat of rivalry is somewhat medium. The number and balance of competitors is medium. Since this is a relatively old industry that is just beginning to boost the growth of industry. The fact that the industry is growing is another reason that rivalry is low. Therefore, there is room in the market for the new competitors.
Suppliers pose a medium threat to the liquor industry. Supplier concentration means that there are only a few suppliers to provide a product to a large number of buyers.
Buyers exert a somewhat strong force in the liquor industry. In this case the buyers are those who use and purchase some alcohol drinks. Consumers have the option of choosing what type or brand of alcohol they use at this time. The economy plays a role in buyer’s options. Current economic conditions are making it difficult for individual consumers, companies, and even banks to get large amounts of capital for the use of loans.
Key Competitors
The only competitors are San Miguel Corp., Emperador Distillers and Asia Brewery Inc.
Part I Industrial Forecast
The five years to 2017 look promising for the Liquor industry. Rising of more events and occasions are expected to serve as a strong driver for demand and boost sales for Tanduay. In addition, slowly improving economic conditions will likely boost consumer spending, allowing customers to indulge even more on premium liquor products. As such, revenue is projected to increase at an average annual rate of 3.8%. However, the Tanduay will continue to face strong competition from grocery stores, mass merchandisers and other factory of liquors, which to some extent will place a cap on the industry’s growth.
The number of events and occasions are the primary driver for Tanduay’s demand. Because the industry sells liquors, including rhum, vodka, gins, whiskey and brandy, an increase in ownership generally translates to higher revenue. In addition, a rise in events and occasions lead to higher demand for products such as liquors and alcohols, since these goods are needed every events held.
To the industry’s benefit, demand for partygoer, especially in events and occasion, will increase into 3.5% in 2017. Rising profitability will also continue to bring new entrants into the industry. The number of enterprises is expected to rise over the five years to 2017, primarily driven by more common single-persons and the aging population, demographic segments seeking companionship. Tanduay projects that the number of events and occasions will increase, contributing to the industry’s growing revenue. With rising sales volumes, the industry’s profitability is expected to grow during the five years to 2017. Tanduay forecasts profit margins to increase from 3.5% of revenue in 2017.
The number of events and occasions are the primary driver for Tanduay’s demand. Because the industry sells liquors, including rhum, vodka, gins, whiskey and brandy, an increase in ownership generally translates to higher revenue. In addition, a rise in events and occasions lead to higher demand for products such as liquors and alcohols, since these goods are needed every events held.
To the industry’s benefit, demand for partygoer, especially in events and occasion, will increase into 3.5% in 2017. Rising profitability will also continue to bring new entrants into the industry. The number of enterprises is expected to rise over the five years to 2017, primarily driven by more common single-persons and the aging population, demographic segments seeking companionship. Tanduay projects that the number of events and occasions will increase, contributing to the industry’s growing revenue. With rising sales volumes, the industry’s profitability is expected to grow during the five years to 2017. Tanduay forecasts profit margins to increase from 3.5% of revenue in 2017.
Part I Organizational Analysis
Incorporating a matrix structure in the organization has helped facilitate communication both internally and externally, which is also central to the success of an organization. Internally, Tanduay’ encouragement of open communication between employees, higher management, and executives allows innovative ideas, problems and solutions to be heard in a timely manner. In terms of external communication, customer loyalty and ownership is promoted by soliciting customer feedback on a regular basis. For example, Tanduay incorporated a social networking site where customers play a role in shaping the company’s future. The site helps ignite an emotional connection with customers, builds a network of loyal and dedicated clientele, allows an open forum for ideas and discussion, and enables customers to provide ideas on products and services.
Decision making considers all aspects of an organization. At Tanduay, ethics are considered most vital in the decision making process and are mirrored in the decisions made. Tanduay uses centralized decision making techniques and has developed a six point model for ethical decision making. This framework includes the following steps in order:
· Identify the ethical problem
· List possible solutions and any obstacles to resolving the problem
· Seek input from others
· Determine the best approach
· Ask for guidance if the path is vague
· Follow through on your decision
The process of researching Tanduay has revealed how the organization functions in terms of organizational behaviors, values, and communication methods. Its organizational goals appear to coincide with its values and practices; a feat that other corporations would do well to model. What you see is what you get with Tanduay. The organization promotes innovation and teamwork and creates a positive, friendly environment for employees and customers. It prioritizes its goals, putting ethical behavior at the forefront and uses communication effectively to encourage customer and employee satisfaction. Tanduay success is due to corporate policy, innovative structure and the quality of its people.
Decision making considers all aspects of an organization. At Tanduay, ethics are considered most vital in the decision making process and are mirrored in the decisions made. Tanduay uses centralized decision making techniques and has developed a six point model for ethical decision making. This framework includes the following steps in order:
· Identify the ethical problem
· List possible solutions and any obstacles to resolving the problem
· Seek input from others
· Determine the best approach
· Ask for guidance if the path is vague
· Follow through on your decision
The process of researching Tanduay has revealed how the organization functions in terms of organizational behaviors, values, and communication methods. Its organizational goals appear to coincide with its values and practices; a feat that other corporations would do well to model. What you see is what you get with Tanduay. The organization promotes innovation and teamwork and creates a positive, friendly environment for employees and customers. It prioritizes its goals, putting ethical behavior at the forefront and uses communication effectively to encourage customer and employee satisfaction. Tanduay success is due to corporate policy, innovative structure and the quality of its people.
Part I Social Responsibility And Ethics
The organization’s ethical framework is based on its mission statement, which is the guiding principle and filter for decision making. This mission statement includes the goals of providing a great work environment through treating employees with respect, commitment to diversity, contribution to community and the environment, providing the best liquor, and achieving profitability.
Contributing to the effort to protect and maintain the environment is at the heart of Tanduay’s ethical values and organizational goals. Tanduay promotes ethical, local and global responsibility. Ethical responsibility includes sourcing liquor products ethically and providing farmer support. It also entails being environmentally aware by recycling and reducing waste by offering reusable cups and providing a line of environmentally friendly products through their Green Store. Locally, Tanduay has established community service programs like Adopt-A- River Program.
Among Tanduay’s Strategic thrusts is to care for and continue to preserve the natural environment. At the very heart of the firm’s Corporate Social Responsibility (CSR) Initiative is its conscientious is its conscientious compliance to regulations and standards set by government regulators such as the Department of Environment and Naturals Resources (DENR). The improvement in Tanduay’s environmental management performance rating indicates that it has progressed from merely being satisfactorily compliant to achieving more that the minimum standards.
Part of Tanduay’s CSR activities is the use of recycled bottles. A twin objective met is reduced manufacturing costs. Around 60% of the total bottle requirements of the company are filled by second-hand bottles retrieved from major geographic markets.
Contributing to the effort to protect and maintain the environment is at the heart of Tanduay’s ethical values and organizational goals. Tanduay promotes ethical, local and global responsibility. Ethical responsibility includes sourcing liquor products ethically and providing farmer support. It also entails being environmentally aware by recycling and reducing waste by offering reusable cups and providing a line of environmentally friendly products through their Green Store. Locally, Tanduay has established community service programs like Adopt-A- River Program.
Among Tanduay’s Strategic thrusts is to care for and continue to preserve the natural environment. At the very heart of the firm’s Corporate Social Responsibility (CSR) Initiative is its conscientious is its conscientious compliance to regulations and standards set by government regulators such as the Department of Environment and Naturals Resources (DENR). The improvement in Tanduay’s environmental management performance rating indicates that it has progressed from merely being satisfactorily compliant to achieving more that the minimum standards.
Part of Tanduay’s CSR activities is the use of recycled bottles. A twin objective met is reduced manufacturing costs. Around 60% of the total bottle requirements of the company are filled by second-hand bottles retrieved from major geographic markets.
Part I Government and Environmental Sustainability
TDI is provided with wastewater treatment facilities which treat the wastewater effluent to make it acceptable in quality, prior to its release to the environment. Operating the wastewater treatment plant will incur operating costs covering labor, chemicals, power supply and maintenance which are charged to overhead expenses. The discharge of treated effluent has been charged with environmental user fee (EUF) on its discharge permit for using the environment as recipient of discharges. The facilities are supervised by accredited Pollution Control Officers (PCO) per plant .TDI also provided secondary containment to all hazardous materials storage to prevent spills. All hazardous waste are properly stored, transported and treated using DENR Accredited Transporters and Treaters.
In ensuring the compliance of all facilities and to its advocacy on the preservation of the environment, the company hired an Officer to handle issues pertaining to Environment, Health, safety & Risk Management, Thus, creating Group Safety, Environment and Risk Management (GSERM) on February 1, 2011. The Group was tasked with the development of Environment and Occupational Health and Safety (EOSH) programs; provide strategic directions and ensure compliance to safety and environmental regulatory requirements. For the implementation of the Group’s programs and strategic directions, Environmental, Health and Safety (EHS) Committees were designated per plant.
Through TDI and ADI’s shift to environment-friendly production with (efficient materials usage / optimized resource utilization) and active performance to the Ecobonus Program, the Green Philippines Islands of Sustainability (GPIoS) presented the Ecoswitch Award last September 22, 2011.
The operation of TDI exists and future plants are subject to a broad range of safety, health and environmental laws and regulations. These laws and regulations impose controls on air and water discharges, on the storage, handling, employee exposure to hazardous substances and other aspects of the operations of these facilities and businesses. TDI has incurred, and expects to continue to incur, operating costs to comply with such laws and regulations. The discharge of hazardous substances or other pollutants into the air, soil or water may cause TDI to be liable to third parties, the Philippine government or to the local government units with jurisdiction over the areas where TDI’s facilities are located. TDI may be required to incur costs to remedy the damage caused by such discharges or pay fines or other penalties for non-compliance.
There is no assurance that TDI will not become involved in future litigation or other proceedings or be held responsible in any such future litigation or proceedings relating to safety, health and environmental matters, the costs of which could be material. Clean-up and remediation costs of the sites in which its facilities are located and related litigation could materially and adversely affect TDI’s cash flow, results of operations and financial condition.
It is the policy of TDI to comply with existing environmental laws and regulations. A major portion of its investment in physical facilities was allocated to environmental protection systems which have been favorably cited as compliant by the environmental regulators.
In ensuring the compliance of all facilities and to its advocacy on the preservation of the environment, the company hired an Officer to handle issues pertaining to Environment, Health, safety & Risk Management, Thus, creating Group Safety, Environment and Risk Management (GSERM) on February 1, 2011. The Group was tasked with the development of Environment and Occupational Health and Safety (EOSH) programs; provide strategic directions and ensure compliance to safety and environmental regulatory requirements. For the implementation of the Group’s programs and strategic directions, Environmental, Health and Safety (EHS) Committees were designated per plant.
Through TDI and ADI’s shift to environment-friendly production with (efficient materials usage / optimized resource utilization) and active performance to the Ecobonus Program, the Green Philippines Islands of Sustainability (GPIoS) presented the Ecoswitch Award last September 22, 2011.
The operation of TDI exists and future plants are subject to a broad range of safety, health and environmental laws and regulations. These laws and regulations impose controls on air and water discharges, on the storage, handling, employee exposure to hazardous substances and other aspects of the operations of these facilities and businesses. TDI has incurred, and expects to continue to incur, operating costs to comply with such laws and regulations. The discharge of hazardous substances or other pollutants into the air, soil or water may cause TDI to be liable to third parties, the Philippine government or to the local government units with jurisdiction over the areas where TDI’s facilities are located. TDI may be required to incur costs to remedy the damage caused by such discharges or pay fines or other penalties for non-compliance.
There is no assurance that TDI will not become involved in future litigation or other proceedings or be held responsible in any such future litigation or proceedings relating to safety, health and environmental matters, the costs of which could be material. Clean-up and remediation costs of the sites in which its facilities are located and related litigation could materially and adversely affect TDI’s cash flow, results of operations and financial condition.
It is the policy of TDI to comply with existing environmental laws and regulations. A major portion of its investment in physical facilities was allocated to environmental protection systems which have been favorably cited as compliant by the environmental regulators.
Part II SWOT Analysis
Strengths
· Popularity
· Broad Product Range
· Leading Market Position
· Strong Financial Growth
Weakness
· Health Issues
· Production Disruption
· Increasing Debts and Accounts Receivable
Opportunities
· Expansion in Production Capabilities
· Focus on Innovation and New Product Development
Threats
· Changing Customer Spending Pattern
· Highly Competitive Market
· Increase in the Input Cost
Strengths – Tanduay is extremely recognizing company. Popularity is one of its superior strengths that are virtually incomparable. Tanduay is known very well in the Philippines. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no liquor company compares to Tanduay's social popularity status. Some people buy Tanduay products, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. Another thing is that Tanduay as a lot of product that you can choose that gives more customers to the company now; Tanduay is one of the leading liquor companies in the Philippines. Money is another thing that is strength of the company. Tanduay deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are earning is substantially better than most liquor companies, and with that money, they put back into their own company so that they can improve.
Weaknesses – Tanduay is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. A weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like gin is not very beneficial to your body and your health. With today’s constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the products that are labeled detrimental to your health. Another weakness is the disruption of the products because of some supply and demand issues that didn’t much. The last is increasing of debts and account receivable because even though the company gains much profit still, they have debts to be paid that is increasing and late accounts to be received in cash.
Opportunities – since Tanduay has some sort of products they see that they can make more products that can be their opportunity to make the company more profitable and the last is they have lots of new ideas that they will you and to develop more products that will satisfies the people or the customers they have. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Tanduay competitive position. Now Tanduay wants to get there brand name known even better and possibly get closer and closer. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Tanduay has an opportunity to continue to widen the gap between them and their competitors.
Threats - Despite the fact that Tanduay dominates its market, it still has to deal with many threats. Such as changing customer spending pattern because not all the time some customer will buy these products, sometimes when you product released they will buy it more and the company sometime didn’t measure the spending pattern of a person. Other threats are of course the competition. Tanduay’s main competition being San Miguel, sells a very similar drink. Tanduay needs to be careful that San Miguel does grow to be a more successful drink. These other beverage options could take precedent in some people’s minds over Tanduay’s liquors and this could threaten the potential success it presents again. Lastly, the costs of raw material nowadays are highly costly so the impact is that the readymade product cost is also increasing.
· Popularity
· Broad Product Range
· Leading Market Position
· Strong Financial Growth
Weakness
· Health Issues
· Production Disruption
· Increasing Debts and Accounts Receivable
Opportunities
· Expansion in Production Capabilities
· Focus on Innovation and New Product Development
Threats
· Changing Customer Spending Pattern
· Highly Competitive Market
· Increase in the Input Cost
Strengths – Tanduay is extremely recognizing company. Popularity is one of its superior strengths that are virtually incomparable. Tanduay is known very well in the Philippines. It's branding is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and collectible memorabilia. Without a doubt, no liquor company compares to Tanduay's social popularity status. Some people buy Tanduay products, not only because of its taste, but because it is widely accepted and they feel like they are part of something so big and unifying. Another thing is that Tanduay as a lot of product that you can choose that gives more customers to the company now; Tanduay is one of the leading liquor companies in the Philippines. Money is another thing that is strength of the company. Tanduay deals with massive amounts of money all year. Like all businesses, they have had their ups and downs financially, but they have done well in this compartment and will continue to do well and improve. The money they are earning is substantially better than most liquor companies, and with that money, they put back into their own company so that they can improve.
Weaknesses – Tanduay is a very successful company, with limited weaknesses. However they do have a variety of weaknesses that need to be addressed if they want to rise to the next level. A weakness that has been greatly publicized is the health issues that surround some of their products. It is known that a popular product like gin is not very beneficial to your body and your health. With today’s constant shift to health products, some products could possibly loose customers. This new focus on weight and health could be a problem for the products that are labeled detrimental to your health. Another weakness is the disruption of the products because of some supply and demand issues that didn’t much. The last is increasing of debts and account receivable because even though the company gains much profit still, they have debts to be paid that is increasing and late accounts to be received in cash.
Opportunities – since Tanduay has some sort of products they see that they can make more products that can be their opportunity to make the company more profitable and the last is they have lots of new ideas that they will you and to develop more products that will satisfies the people or the customers they have. Also, the company will no longer need to worry about this product being part of the competition. Brand recognition is the significant factor affecting Tanduay competitive position. Now Tanduay wants to get there brand name known even better and possibly get closer and closer. It is an opportunity that most companies will ever dream of, and would be a supreme accomplishment. Tanduay has an opportunity to continue to widen the gap between them and their competitors.
Threats - Despite the fact that Tanduay dominates its market, it still has to deal with many threats. Such as changing customer spending pattern because not all the time some customer will buy these products, sometimes when you product released they will buy it more and the company sometime didn’t measure the spending pattern of a person. Other threats are of course the competition. Tanduay’s main competition being San Miguel, sells a very similar drink. Tanduay needs to be careful that San Miguel does grow to be a more successful drink. These other beverage options could take precedent in some people’s minds over Tanduay’s liquors and this could threaten the potential success it presents again. Lastly, the costs of raw material nowadays are highly costly so the impact is that the readymade product cost is also increasing.