Mabuhay Pumps Company Swot Analysis

MP incor

Introduction

• Mabuhay Pumps Company has manufactured high quality residential pumps for over 20years.

The firm has always been profitable ad relied on home grown talents who have worked with MPC since 15 years ago. The Board of Directors is composed mainly of closed relatives if the founders who have either retired or passed away with a couple of outsiders.

Point of view

• MPC is popularly known for their home grown talents, quality products and trusted Specialization on creating pumps and have recently established their own a foundry cast pump housings and assortment fittings to prove their mastery in their line of business.
• It would be difficult for Renzo to point out that outsourcing their foundry production would help the company in more ways than they expect.
• Renzo believes that oursourcing will lessen expenses, generate more income and save money for future use.
• Company’s president strongly believes that MPC does not need to outsource products that they are able to produce themselver for this might mean loss jobs, talents and skills of the employees.
• The President also pointed out that MPC has gained recognition from their field without using any means of outsourcing.

Statement of the problem

• Can outsourcing the production of the pump housings produce greater benefits for MPC, than producing its own pump housings and fittings?

Areas of consideration

STRENGHTS

• ATF Housings can be used for the MPC pumps with a 15% lower cost
• Outsourcing can be advantage to help the company to focus on their future goals.
• ATF produces good quality housings using their cutting edge technology that is acquired in Japan
• Saves more time without losing the quality of the housings

WEAKNESSES

• Their reputation of relying to their home grown talents will be affected
• MPC might lose loyal, effiecient, skilled and talented employees.
• It has negative impact on the public and customers.
• Lesser quality management control of the pump housings and fittings.

OPPORTUNITIES

• Outsourcing could give the company a head start to focus on other goals and plans.
• Initiating a new product line to save money and time form outsourcing
• Could generate more revenue and make them more competitive
• Creating new products might make MPC more attractive to expand business

THREATS

• MPC is one of the market leaders
• Has built reputation for over 20 years
• Has skilled and loyal employees working in the firm for over 15 years.
• If already made housings and fittings are not properly checked and monitored, might give the company a negative feedback form its customers.