Science Technology Company

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Graduate School of Business

College of Business

Financial Management FCN535M GMG

Yuchengco Hall, Room No. 401

“Science Technology Company”

Case Analysis & Corporate Strategy

Individual Report

of

Chamuel Michael Joseph A. Santiago

Group 4, BS Nursing

Dean Atty. Joe-Santos Balagtas Bisquera

MBA Professor

Case Analysis

Executive Summary

Science Technology Company is the leading manufacturer of computer-controlled automated test equipment for electronics. STC President Bill Watson is reviewing the 5-year financing plan prepared by CFO Harry Finson. He wants to make sure that the plan is correct before he presents it to the board of directors and ensure the future of the company.

Problem

Strategic

What strategy should Science Technology Company adopt in order to continue competing and be the leader in the ATE Industry?

Operational

Is the 5-year forecast sufficient to be the basis for planning the future financial policies and development of the company?

Corporate Objective

Science Technology Company intends to be the leader in providing integrated quality management systems to manufacturers of electronic devices and equipment.

Areas of Consideration

Environmental Opportunities & Threats

Macro-Economic Indicators

Political

Reagan administration undertook a campaign to reduce or eliminate government regulations affecting the consumer, the workplace and the environment.

Economic

U.S. economy slowed down and dipped into recession. Other sectors of the economy, such as computers, aerospace and export industries generally showed signs of continuing growth.

Demographic

It was a decade of the yuppies: a baby boomer with a college education, a well-paying job and expensive taste. Many people migrated from the Sunbelt to the Rust Belt because they had grown tired of the seemingly insurmountable problems facing aging cities, such as overcrowding, pollution and crime.

Socio-Cultural

Many Americans embraced a new conservatism in social, economic and political life during the 1980s. It is the decade of materialism and consumerism.

Market Profile & Outlook

The Automated Test Equipment (ATE) market comprises the sophisticated automated testing system used for the various applications such as consumer electronics, automotive, aerospace and defense, and medical. ATE plays an important role in automatically diagnosing and testing faults in wafers, integrated circuits, chips, printed circuit boards, and other electronic parts. It is extensively used in the semiconductor industry in order to test electronic systems and electronic semiconductor components for defects throughout the manufacturing process to ensure good quality production in less time.