Jk Cement

SWOT ANALYSIS

Strengths

• Product Quality

          JK Cement is long enough to be known in the cement line of business, the product that they produce consistently meet and sometimes exceed customers expectations. It is also there key to success.

• Market Location

          JK Cement is located near Metro Manila, where the demand for cement is most concentrated, they supplied 10% of domestic & 15% of Metro Manila market.

• Workers

          JK Cement has good, well trained workers. The company see to it that there workers are up-to-date of the latest trainings, so that they can cope up with the changing technology.

• Market demand

          The cement industry has a good demand, it is expected that the construction industry will grow at 16.5% for the next 5 years, with the increase in construction activities, the demand for cement was also expected to increase by at least 5% per year.

• Mr. Geroso

          Has years of experience in cement industry. He come up with the strategic plan about the expansion set-up in order to finish the construction with in 2 years or 24 months.

Weaknesses

• Production Output Shortage

          JK Cement produces 1,670 tons of cement per day or 41,700 bags of 40kg. each cement per day. If demand is expected to increase, the total produced cement is not enough to meet the demand for the next 5 years.

• Procedure done Manually

           Individual operators logging in relevant information per production phase, this causes delay because it takes time to record each and every important matters or details on the production phase.

• Increase Cost (Cost Overruns)

          As they plan for the expansion, certain development may lead to incur cost than expected. For example, new and old equipment may not work well together, exchange rates may affect the buying of some spare parts and equipment and it may be just as costly as building an entirely new plant.