Professional Documents
Culture Documents
Vision Statement:
“Cellox is committed to the ideals of Quality, Service, People, and the Utilization of
technology dedicated to ‘Making it Happen.’”
I. Statement of the Objectives
To identify whether Cellox is still capable of continuing its operations.
To evaluate the financial performance of the corporation.
To minimize losses
To measure the competitiveness of the institution in its industry.
Howcan Cellox endure and continue pursuing forward despite having operating at loss?
Strengths
Opportunities
There is an increase in population in U.S.since houses (shelter) are the needs of the
people.
Discovering other business related to the industry or other business where David Pace
can use its other business expertise.
Development of international market
Expansion of Cellox
Threats
Liquidation is a threat to company as financial position is not strong for the last
threeyears.
Increase competition in the industry. Saturated Market is there as 100 manufacturers are
of PPM and 40 of ICF.
Market is growing rapidly, probability of more competitors to enter.
Demand for high variety in terms of steel, bricks and woods.
Advantages
Developing new products and services will help stay competitive in the market.
This will assure an increase in sales.
They have a better marketing and advertising efforts compare to their
competitors.
Disadvantages
Disadvantages:
It is probable thatCellox may completely lose its existence as an entity.
Additional layoff on employees will occur.
Cellox will sacrifice the established company design, quality, service and
reputation.
V. Strategy Formulation
I therefore conclude that the best solution for the problem is alternative course of action
number 2 because going with the trend is what best helps a company to stay competitive in the
market. It is especially important to keep developing products because there are so many
competitors which do not stop finding new products that can attract customers. Although
research and development will be very costly, in the long run, there is a good chance that these
products will earn a good percentage as a return on investment. Having a great leader in the
company it will be easy for Cellox to handle new products. The expertise of David Pace will be
the great advantage of the company, by using this strength it will surely improve the position of
the company. It is risky but it is the best way to take the risk because the higher the risk, the
higher the return.
1. Gather data that will be essential for the development of new product.
2. Hire professionals who can work on the planned products that the company wants to
develop.
3. Develop a long term plan for advertising and marketing effort.
4. Advertise the new products.
5. Test the market by producing only few products or providing some services first; if the
market embraced these products/ services, then they can produce more to satisfy
demand.
6. Implement the strategy
2. What if applying this strategy the overall company will still incur a negative income?
3. What if Cellox was not able to develop a product worthy of attention from the general
market?
1. They can include additional services or to the new product categories that is not covered
by other competitors that can meet consumer demands.
2. It is not an immediate positive outcome after implementing a new strategy. Test the
strategy twice, if the chosen strategy still incurs a decrease in profit. The company may
choose another strategy.
3. The company can continue improving its new products or it can stop innovating and
focus instead on its profitable products/services.