PROBLEMS FINDINGS CONCLUSION RECOMMENDATION

1. What are the A. Differentiation Aspect:

competitive strategies All the indicators under this aspect are The business succeeded on
adapted in ALINDECO always adapted except for the strategy of developing superior quality Always adapt on this
along with: creating innovation or developing new products through their efforts strategy to be at par with
A. Differentiation product not offered in the market which is and investments on R&D which the changing market and to
B. Niche only sometimes adapted. were essential factors of continue practicing not
C. Cost Leadership differentiation strategy. relying on only one supplier
aspects? B. Niche Aspect: It also succeeded on because it might affect
All the indicators under this aspect are meeting buyer’s needs by production and cause
always adapted by the firm. producing abaca pulp grades losses. The company
suitable to their requirements should also make sure that
C. Cost Leadership Aspect: which were aspects of niche the research and
All the indicators under this aspect are strategy. development costs as one
always adapted except for the following It also thrived on cost of their differentiating
strategies which are only sometimes leadership aspect via adapting factors will still complement
adapted by the firm: produces own raw strategies on raw materials to the company being cost
materials/supplies to reduce product acquisition to the production competitive.
costs & mass produce to drive prices process.
really low.
2. What are the cost A. Asset Utilization:
minimization practices All the indicators of cost minimization The business utilized its The business should
used by ALINDECO in practices under asset utilization are available assets to generate continue to practice cost
terms of: always practiced by the firm. profits well from production minimization strategies in
A. Asset utilization? process to other aspects. line with asset utilization
B. Direct cost B. Direct Cost Incurrence: and direct cost incurrence
incurrence? All the indicators of cost minimization The business’ direct cost but still persist to seek for
practices under direct cost incurrence are incurrence was well accounted improvements. It also
always practiced by the firm except for for by way of carrying out cost should make sure that the
purchasing raw materials when there’s a minimization practices. efforts on minimizing cost
need for stock replenishment and will not affect the quality of
purchasing raw materials from one product they produced and
supplier which were sometimes and its competitiveness.
never practiced, respectively.
3. What are the benefits A. Profitability:
of cost minimization Based on the ratio analysis made, the The business benefited on
strategies adapted to the company consistently showed a profitable cost minimization strategies
firm’s: operation for five (5) consecutive years adapted by having profitable
A. Profitability? from year 2014 to 2018. operations in a five consecutive
B. Liquidity? year.
C. Efficiency? B. Liquidity:
Based on the ratio analysis made, The adaption of the cost
current ratio indicates that for past five minimization strategies also
The business should not
years current assets covered current served the business well by
be complacent or not settled
liabilities one time or had one is to one way of having the ability to
to its current performance
ratio, as to the quick ratio, it consistently cover its debts when due.
as there are external factors
showed that it had the ability to meet its
that might affect its current
obligation without having to liquidate or
standing in the industry
depend too much on its inventory.
they’re within. Instead, it
should always strive for
C. Efficiency:
ways to become
Based on the ratio analysis made, the The cost minimization
competitive, cost-efficient,
company’s return on asset is 50%, it strategies adapted helped the
profitable, liquid and
consistently showed overall efficiency in business in terms of being
efficient.
managing its total investment in assets efficient in managing its
which indicates the amount of profit investments in asset. However,
earned relative to the level of investment the T/R turnover and F/G
in total assets, the trade receivable turnover indicated and showed
turnover of showed that trade receivables inefficiency in the collection of
had been turned into cash 1.25 times in trade receivable and slow-
the five year period and finished goods moving or inferior inventory
inventory turnover of ALINDECO was 1 stock.
times throughout 2014 to 2018.